Search found 1482 matches

by Longdog
Thu Sep 17, 2020 1:56 pm
Forum: Personal Finance (Not Investing)
Topic: Preparing for retirement in mid 30s
Replies: 311
Views: 19373

Re: Preparing for retirement in mid 30s

Although i'm not enthusiastic about the OP's plan, in fact public colleges and universities may be at least tuition-free for a family in the proposed income range. In my state any of the public universities would be tuition-free, and I believe some have fee assistance plans. Of course there are aca...
by Longdog
Wed Sep 16, 2020 7:54 pm
Forum: Personal Finance (Not Investing)
Topic: Preparing for retirement in mid 30s
Replies: 311
Views: 19373

Re: Preparing for retirement in mid 30s

Kids are expensive, and get more and more so as they age. Do you not plan to send them to college? I am skeptical that your 45K per year, inflation adjusted, is realistic for 20 years or more, especially with children. Will you have a car to pay for and/or maintain? How often will you require a new ...
by Longdog
Wed Sep 16, 2020 7:28 pm
Forum: Personal Investments
Topic: Vanguard Opening Account - The Old School Way
Replies: 13
Views: 991

Re: Vanguard Opening Account - The Old School Way

I have occasionally needed to send Vanguard signed documents related to transfers of securities (both incoming and outgoing) and typically they have processed them the same day they receive them. However, I haven't yet sent anything to their new processing center in El Paso, TX. I hope your delay is...
by Longdog
Fri Sep 11, 2020 1:57 pm
Forum: Investing - Theory, News & General
Topic: Timing the market for Roth Conversions. Sin?
Replies: 18
Views: 909

Re: Timing the market for Roth Conversions. Sin?

If you're converting equities in a pre-tax account to equities in a Roth account, it's not really market timing because you're not getting into and out of the market. You're just trying to minimize taxes due on the conversion by taking advantage of relative market troughs. Is that what you are doin...
by Longdog
Fri Sep 11, 2020 1:26 pm
Forum: Investing - Theory, News & General
Topic: Timing the market for Roth Conversions. Sin?
Replies: 18
Views: 909

Re: Timing the market for Roth Conversions. Sin?

If you're converting equities in a pre-tax account to equities in a Roth account, it's not really market timing because you're not getting into and out of the market. You're just trying to minimize taxes due on the conversion by taking advantage of relative market troughs. Is that what you are doing?
by Longdog
Fri Sep 11, 2020 12:56 pm
Forum: Personal Investments
Topic: Is there a tax-efficient, one-fund portfolio?
Replies: 25
Views: 2383

Re: Is there a tax-efficient, one-fund portfolio?

Tax efficiency is best viewed in the context of one’s entire portfolio that would consist of taxable accounts, pre-tax (tax-deferred) accounts, and Roth (tax-exempt) accounts. In your taxable accounts you’d place equities, such as stock index funds, and possibly municipal bonds. In your pre-tax acco...
by Longdog
Thu Sep 10, 2020 7:16 pm
Forum: Personal Investments
Topic: Moving from 401K Stable Value to IRA Bond Fund
Replies: 7
Views: 553

Re: Moving from 401K Stable Value to IRA Bond Fund

Someone who keeps his 401(k) entirely in a stable value fund is extremely conservative. You need to reconcile yourself to principal fluctuations before you invest in bond funds. Will you have enough for retirement with a conservative allocation for 25 years? That depends how much and what they hold...
by Longdog
Thu Sep 10, 2020 3:16 pm
Forum: Personal Finance (Not Investing)
Topic: Is your company participating in payroll tax deferral?
Replies: 14
Views: 879

Re: Is your company participating in payroll tax deferral?

SilverGirl wrote: Thu Sep 10, 2020 3:09 pm Employer here. Not doing it. I don't see why an employer would. What am I missing?
There's nothing to get. You're not missing anything.

Agree with the point that for some people who participate in it believing it is beneficial to them, they will be in for an unpleasant surprise 1Q21.
by Longdog
Wed Sep 09, 2020 8:12 pm
Forum: Personal Investments
Topic: Moving from 401K Stable Value to IRA Bond Fund
Replies: 7
Views: 553

Re: Moving from 401K Stable Value to IRA Bond Fund

I would consider the stable value fund a fairly unique investment option that is only available in 401k accounts. I’d keep it there for now, unless the maintenance fee is exorbitant.
by Longdog
Sat Aug 15, 2020 11:07 am
Forum: Personal Finance (Not Investing)
Topic: Understanding Chapter 7 Bankruptcy
Replies: 11
Views: 619

Re: Understanding Chapter 7 Bankruptcy

I know of one case where an individual declared bankruptcy five times! And now this individual lives in a beautiful, fully staffed historic mansion, has all his meals prepared for him, gets chauffeured wherever he wants, and flies exclusively in a dedicated, specially equipped 747. And he never has ...
by Longdog
Mon Aug 10, 2020 7:53 pm
Forum: Personal Finance (Not Investing)
Topic: What did you do when you won the game? Edited
Replies: 53
Views: 6629

Re: What did you do when you won the game? Edited

After the game was won, I celebrated with friends and family, retired from my job, and have occupied my time doing exactly what I want every day. My stress level is nil, my relationships have taken on a much deeper level, I have unlimited time for my grand-kid, and I pursue knowledge for its own sa...
by Longdog
Sun Aug 09, 2020 8:26 pm
Forum: Personal Investments
Topic: TLH Sale Of Rental Property Against Stock Gains
Replies: 16
Views: 561

Re: TLH Sale Of Rental Property Against Stock Gains

Thank you for the quick replies! How does one determine the fmv at time of conversions? In my mind, it was worth what we paid for it, haha. Purchase price minus depreciation, I believe I'm still the red. You'd need to have some independent documentation that establishes its value around the time of...
by Longdog
Sun Aug 09, 2020 7:58 pm
Forum: Personal Investments
Topic: TLH Sale Of Rental Property Against Stock Gains
Replies: 16
Views: 561

Re: TLH Sale Of Rental Property Against Stock Gains

Thank you for the quick replies! How does one determine the fmv at time of conversions? In my mind, it was worth what we paid for it, haha. Purchase price minus depreciation, I believe I'm still the red. You'd need to have some independent documentation that establishes its value around the time of...
by Longdog
Sun Aug 09, 2020 7:35 pm
Forum: Personal Investments
Topic: TLH Sale Of Rental Property Against Stock Gains
Replies: 16
Views: 561

Re: TLH Sale Of Rental Property Against Stock Gains

I'm hoping someone will be able to point me in the right direction... 3 years ago we moved out of state for work. We were unable to sell our home but we were able to rent it out. I converted the home to a rental property 2 years ago and started depreciating it as a rental property on our taxes. As ...
by Longdog
Sun Aug 09, 2020 3:19 pm
Forum: Personal Finance (Not Investing)
Topic: deferred payroll tax implications?
Replies: 77
Views: 5508

Re: deferred payroll tax implications?

sounds like this screws over many people who maybe had work the first few months before getting hit by covid impact this summer via layoffs or client losses. They now get no federal unemployment supplement AND have to pay full SS on all earlier earnings - zero support in 2nd half of year. Really do...
by Longdog
Sat Aug 01, 2020 5:49 pm
Forum: Personal Investments
Topic: Wash Sale with Gains and Losses
Replies: 8
Views: 435

Re: Wash Sale with Gains and Losses

From IRS Publication 550: A wash sale occurs when you sell or trade stock or securities at a loss and within 30 days before or after the sale you: Buy substantially identical stock or securities, Acquire substantially identical stock or securities in a fully taxable trade, Acquire a contract or opt...
by Longdog
Sat Aug 01, 2020 4:45 pm
Forum: Personal Investments
Topic: Wash Sale with Gains and Losses
Replies: 8
Views: 435

Re: Wash Sale with Gains and Losses

From IRS Publication 550: A wash sale occurs when you sell or trade stock or securities at a loss and within 30 days before or after the sale you: Buy substantially identical stock or securities, Acquire substantially identical stock or securities in a fully taxable trade, Acquire a contract or opti...
by Longdog
Fri Jul 03, 2020 7:33 pm
Forum: Investing - Theory, News & General
Topic: Which is better for a recession - S&P 500 or Total Stock Market indexes?
Replies: 11
Views: 1436

Re: Which is better for a recession - S&P 500 or Total Stock Market indexes?

They will behave very similarly - no telling which would be better during a recession. However, you might not want to choose your investments based on whether you think we are entering, leaving, or in the midst of a recession or any other economic condition. The Bogleheads advice is to select an ass...
by Longdog
Wed Jun 24, 2020 7:22 pm
Forum: Investing - Theory, News & General
Topic: Asymmetric risk in the Roth vs Traditional question
Replies: 297
Views: 13835

Re: Asymmetric risk in the Roth vs Traditional question

I feel like there are a lot of unstated assumptions that everyone responding seems to understand but are making it difficult for me (and possibly others) to fully appreciate the conclusions. For example, is there an assumption that the "perfect" allocation will spend your last dollar the moment befo...
by Longdog
Sat Jun 20, 2020 7:54 pm
Forum: Personal Investments
Topic: A serious question from a senior about investing.
Replies: 42
Views: 3279

Re: A serious question from a senior about investing.

I think it’s a reasonable reaction to your belief. You are at an age and presumably net worth that you no longer have a need to take risk and you’ll still be fine.
by Longdog
Sun Jun 14, 2020 7:57 pm
Forum: Personal Finance (Not Investing)
Topic: Fight Over TOD Investment Account
Replies: 13
Views: 2423

Re: Fight Over TOD Investment Account

I that Celia's suggestion to ask the brokerage company to look at the original form that your cousin signed to open the account was a good one. Did you attempt that?
by Longdog
Tue Jun 09, 2020 2:53 pm
Forum: Personal Finance (Not Investing)
Topic: Can I give a loan to my buddy to buy a boat?
Replies: 81
Views: 4832

Re: Can I give a loan to my buddy to buy a boat?

So, you're saying you want a boat? Enjoy it!
by Longdog
Tue Jun 09, 2020 2:50 pm
Forum: Investing - Theory, News & General
Topic: Dave Ramsey mentioned bogleheads today
Replies: 142
Views: 10055

Re: Dave Ramsey mentioned bogleheads today

sailaway wrote: Mon Jun 08, 2020 9:43 pm What about the guy with 999,000 who could have been a millionaire with lower fees, though?
I know that guy. Walks around constantly saying to anyone who will listen, "if it weren't for those darn expense ratios, I'd be a millionaire!" Very sad.

I guess what Dave said was true. :D
by Longdog
Mon Jun 08, 2020 1:31 pm
Forum: Investing - Theory, News & General
Topic: Brokerages: I Need A Robo Platform That Lets Me Choose My ETFs and My Asset Allocation
Replies: 26
Views: 1321

Re: Brokerages: I Need A Robo Platform That Lets Me Choose My ETFs and My Asset Allocation

I thought the same thing as Bob when I read your posting. If you're already picking the investments and asset allocations, what are you getting from a robo advisor? That's basically what they do.
by Longdog
Wed May 27, 2020 7:02 pm
Forum: Personal Investments
Topic: Tax loss amount
Replies: 11
Views: 500

Re: Tax loss amount

First, you need to know whether the gains and losses are short-term (holding period under 1 year) or long-term (holding period of 1 year or greater). Short-term losses are first deducted against short-term gains, and long-term losses are deducted against long-term gains. Net losses of either type ca...
by Longdog
Wed May 27, 2020 3:59 pm
Forum: Personal Investments
Topic: How to invest lots of maturing CDs in this investment climate
Replies: 55
Views: 20760

Re: How to invest lots of maturing CDs in this investment climate

I assume the goal of a second POD registration is to allow for another 250K of FDIC insurance. I’m not sure it works that way. I think the extra account, at the same institution, would need to be held in trust for other individuals, not POD to those individuals.
by Longdog
Sat May 23, 2020 9:21 am
Forum: Personal Finance (Not Investing)
Topic: The axe falls and I am prepared. What's next?
Replies: 407
Views: 39276

Re: The axe falls and I am prepared. What's next?

Klangfool, I, too, have read many of your posts over the years and found them very thoughtful, logical, and insightful. As a fellow engineer, to me they clearly were written from the logical perspective of an engineer. Based on the frequency with which you mention your career, I get the impression t...
by Longdog
Fri May 22, 2020 11:06 am
Forum: Personal Consumer Issues
Topic: Discarding Music CDs
Replies: 97
Views: 7054

Re: Discarding Music CDs

Have you considered donating them to your local library? I donated some CDs and DVDs to my library and they were ecstatic at getting the donation. I am sure the library would not want them. I had fairly atrocious tastes in music. You know, stuff like boybands and instrumental tracks to truly bad mo...
by Longdog
Thu May 21, 2020 8:25 pm
Forum: Investing - Theory, News & General
Topic: Help me understand tax on mutual fund
Replies: 7
Views: 495

Re: Help me understand tax on mutual fund

My question is, even if you sold your retirement account holdings at the peak and staying with Cash you probably made a 15-16% profit as of now ( short term and if you went all in today). However if you did that on your taxable account ( assuming you were invested in mutual funds only) wouldn’t the...
by Longdog
Mon May 18, 2020 9:30 am
Forum: Personal Finance (Not Investing)
Topic: Tax Deductions for Donation to Donor Advised Fund from account titled in name of Revocable Trust
Replies: 7
Views: 328

Re: Tax Deductions for Donation to Donor Advised Fund from account titled in name of Revocable Trust

If you’re uncomfortable doing that way (though I think it is totally legitimate) I can think of several options to avoid that: 1) Make the contribution before the joint account gets retitled. The retitled account will probably have a new account number so it will be distinguishable from your joint ...
by Longdog
Mon May 18, 2020 8:29 am
Forum: Personal Finance (Not Investing)
Topic: Tax Deductions for Donation to Donor Advised Fund from account titled in name of Revocable Trust
Replies: 7
Views: 328

Re: Tax Deductions for Donation to Donor Advised Fund from account titled in name of Revocable Trust

If you’re uncomfortable doing that way (though I think it is totally legitimate) I can think of several options to avoid that: 1) Make the contribution before the joint account gets retitled. The retitled account will probably have a new account number so it will be distinguishable from your joint a...
by Longdog
Tue Apr 28, 2020 12:27 pm
Forum: Personal Investments
Topic: RMDs
Replies: 13
Views: 916

Re: RMDs

It depends on your current tax situation as well as your availability of other sources of income to meet your needs.
by Longdog
Tue Apr 28, 2020 8:40 am
Forum: Investing - Theory, News & General
Topic: Tax Loss Harvesting flowchart
Replies: 90
Views: 6169

Re: Tax Loss Harvesting flowchart

What’s the advantage of turning off auto reinvestment of dividends if you can just sell the reinvested dividend? The advantage is minimal, but it's still there. 3) I'm not 100% sure, but if there's any chance that qualified dividends would be recharacterized as non-qualified, I don't want to take t...
by Longdog
Mon Apr 27, 2020 2:31 pm
Forum: Investing - Theory, News & General
Topic: Tax Loss Harvesting flowchart
Replies: 90
Views: 6169

Re: Tax Loss Harvesting flowchart

I think your third box on the left is attempting to avoid turning qualified dividends into non-qualified dividends I may have some old stocks I buy stock on 1/1 It gives me dividends on 1/10 I sell on 1/20 all the stocks I bought on 1/1 I understand the dividends will not be qualified. But I sell t...
by Longdog
Sun Apr 26, 2020 7:56 pm
Forum: Personal Investments
Topic: Why am I even saving for retirement?
Replies: 223
Views: 20410

Re: Why am I even saving for retirement?

Just ran my wife's and my numbers through https://ssa.tools/ Even if we don't save another dime, we will have more than enough to cover that 10 year drawdown from age 60 to 70 (assuming conservative growth over the next 25 years of our current portfolio). So why should we save anything more? 1) Bec...
by Longdog
Fri Apr 24, 2020 7:17 pm
Forum: Personal Investments
Topic: Can't turn off dividend reinvestment with Vanguard
Replies: 20
Views: 1469

Re: Can't turn off dividend reinvestment with Vanguard

Since the account only has one fund in it why do you not want dividends reinvested? It can mess up tax loss harvesting with my taxable account For future planning, try not to hold the exact same funds in both taxable and tax-advantaged. Correct. I do not. I'm in the middle of a TLH. Exchanged VTSAX...
by Longdog
Fri Apr 24, 2020 7:01 am
Forum: Investing - Theory, News & General
Topic: Tax Loss Harvesting flowchart
Replies: 90
Views: 6169

Re: Tax Loss Harvesting flowchart

I think your third box on the left is attempting to avoid turning qualified dividends into non-qualified dividends. So, in that box, they would have to be shares held prior to the ex-dividend date. Shares purchased after that date wouldn't have generated dividends that you need to be concerned about...
by Longdog
Thu Apr 23, 2020 6:56 pm
Forum: Investing - Theory, News & General
Topic: Bonds won't get you anywhere!
Replies: 85
Views: 9362

Re: Bonds won't get you anywhere!

Stocks are good when your investing horizon is a long time out.In other words, for money you won't need for many, many years. But realize that they can suddenly drop 30% or more apparently out of nowhere, like they just did in March. As you accumulate more and more assets, and hopefully benefit from...
by Longdog
Tue Apr 21, 2020 9:12 am
Forum: Personal Investments
Topic: 100k Backdoor Roth?
Replies: 14
Views: 815

Re: 100k Backdoor Roth?

Can I withdraw $100K from my pretax 401k, put the proceeds in a traditional IRA, and convert it to Roth? If so, what are the tax consequences? 1) Yes. 2) You pay tax at your marginal rate on that $100K. Can you please explain 2? Section 2103(a)(3) of CARES says: (A) IN GENERAL.—Any individual who r...
by Longdog
Tue Apr 21, 2020 6:33 am
Forum: Personal Investments
Topic: Carrying forward and tracking ST and LT losses to future years
Replies: 3
Views: 274

Carrying forward and tracking ST and LT losses to future years

In a given year, if you have more short-term losses than short-term gains AND if you have more long-term losses than long-term gains AND you have other income exceeding $3000 then the residual unused losses get carried forward to the next year, in their appropriate categories (ST versus LT). From wh...
by Longdog
Sun Apr 19, 2020 7:47 am
Forum: Investing - Theory, News & General
Topic: Will indexes continue to perform well?
Replies: 35
Views: 1757

Re: Will indexes continue to perform well?

If you believe that equities should be part of your portfolio, then indexes will continue to be better than most actively managed funds. But not all of them. Unfortunately there’s no way to know beforehand which ones, if any, will perform better. Only after-the-fact - which is not actionable. And ev...
by Longdog
Sun Apr 12, 2020 8:04 pm
Forum: Personal Finance (Not Investing)
Topic: What are some financial positives of the current crisis?
Replies: 31
Views: 3277

Re: What are some financial positives of the current crisis?

I doubt there is a financial positive for one person that isn’t simultaneously a financial negative for someone else. Probably in six - twelve months a lot of items will be less expensive because retailers will be desperate for sales, but will have had to lay off many workers. I wouldn’t consider th...
by Longdog
Sun Apr 12, 2020 3:49 pm
Forum: Personal Finance (Not Investing)
Topic: Stimulus payment twist (unusual circumstance) UPDATE
Replies: 8
Views: 1409

Re: Stimulus payment twist (unusual circumstance)

Sorry about your dad. I would interpret the law as saying $1200/taxpayer, so that's how much SHOULD be deposited. However, that doesn't mean there won't be a deposit of $2400 because they will rely on the 2018 tax return. I give it 50/50 odds of either outcome. You'll find out soon! Please let us kn...
by Longdog
Fri Apr 10, 2020 7:09 pm
Forum: Personal Investments
Topic: Mutual Shares Fund - Still Worth Holding?
Replies: 12
Views: 946

Re: Mutual Shares Fund - Still Worth Holding?

I've had this fund since October 1987, when it was sold by Heine Securities. Bought my first shares a few days before black Monday - an experience that has greatly informed my investing career! I had been investing in it on and off for many years, got notified when its founder Max Heine died in 1988...
by Longdog
Fri Apr 10, 2020 11:50 am
Forum: Personal Consumer Issues
Topic: Seller hesitant to part with something
Replies: 38
Views: 3465

Re: Seller hesitant to part with something

I did think about setting a timeline too. My strategy for now is to tell him I will pay his asking price for the item and that the offer stands for a week. But the reason I'm thinking of setting a timeline is so that he doesn't get to shop my offer around to other potential buyers in the hopes of g...
by Longdog
Fri Apr 10, 2020 7:49 am
Forum: Personal Consumer Issues
Topic: Seller hesitant to part with something
Replies: 38
Views: 3465

Re: Seller hesitant to part with something

Tell him you understand, and that your offer stands for X days/weeks/months, and if he changes his mind to please let you know. Thank him for his time and wish him well. Then move on and forget about it unless he contacts you again. The next move would be his.
by Longdog
Mon Apr 06, 2020 8:23 am
Forum: Personal Finance (Not Investing)
Topic: Vanguard site still requiring RMD's?
Replies: 3
Views: 356

Re: Vanguard site still requiring RMD's?

That change was only signed into law a week ago. It’s unfortunate that you cannot immediately act on it, but I think it’s to be expected that Vanguard and every other financial services company (and even the IRS) would take a little time to update their systems and software to allow it.
by Longdog
Sat Apr 04, 2020 6:15 am
Forum: Personal Investments
Topic: Right time to convert to Roth IRA?
Replies: 14
Views: 1389

Re: Right time to convert to Roth IRA?

I'm not clear about the benefit of converting from IRA to Roth in a down market. Isn't it the case you pay taxes based on the dollar amount of the conversion, not the share value? So a $30,000 conversion is a $30,000 conversion in terms of what gets taxed. I realize that tax rates matter when doing...
by Longdog
Fri Apr 03, 2020 7:27 pm
Forum: Personal Finance (Not Investing)
Topic: Backdoor ROTH
Replies: 6
Views: 409

Re: Backdoor ROTH

Yes, you can do that, but will be subject to something called the pro rata rule, which takes into account existing deductible tIRA assets. See https://www.bogleheads.org/wiki/Backdoor_Roth for a detailed explanation.
by Longdog
Fri Apr 03, 2020 4:29 pm
Forum: Investing - Theory, News & General
Topic: What's happening with Muni Money Market fund yields?
Replies: 153
Views: 14924

Re: Tax Exempt Money Market Funds, Current Yields High

It’s a liquidity issue. It was even more pronounced a week ago, but the Fed has since agreed to buy short term (<12 month) munis, in addition to the commercial paper used for money market funds, to allow the municipal market to function.