Search found 5438 matches

by Earl Lemongrab
Sun Oct 21, 2018 7:01 pm
Forum: Investing - Help with Personal Investments
Topic: Rollover IRA Questions
Replies: 7
Views: 449

Re: Rollover IRA Questions

If you don't have IRAs with pretax amounts, which normally a 401(k) rollover will have, then you can use the so-called backdoor Roth. In that case, you make a contribution to a traditional IRA, which is not deductible, then convert to a Roth IRA with little tax due. If you have pretax IRA holdings, ...
by Earl Lemongrab
Sun Oct 21, 2018 6:55 pm
Forum: Investing - Theory, News & General
Topic: PhysicianOnFire blog: "Tax Loss Harvesting with Vanguard: A Step by Step Guide"
Replies: 33
Views: 3585

Re: "Tax Loss Harvesting with Vanguard: A Step by Step Guide"

Actually, the intent of the wash sales provisions is to prevent tax manipulation by a taxpayer who attempts to recognize a loss on the sale of 'securities' while maintaining an identical or nearly identical investment position. Actually, no. The IRS does not make legislation. By and large what you ...
by Earl Lemongrab
Sun Oct 21, 2018 5:02 pm
Forum: Investing - Theory, News & General
Topic: PhysicianOnFire blog: "Tax Loss Harvesting with Vanguard: A Step by Step Guide"
Replies: 33
Views: 3585

Re: PhysicianOnFire blog: "Tax Loss Harvesting with Vanguard: A Step by Step Guide"

JustinR wrote:
Sun Oct 21, 2018 4:32 pm
Another question: there's no implications of how long you've owned the shares right?
There is. Shares held less than a year have short-term losses. There are some complexities with muni funds, but I'm not that familiar with the details.
by Earl Lemongrab
Sun Oct 21, 2018 4:59 pm
Forum: Investing - Help with Personal Investments
Topic: Rollover IRA Questions
Replies: 7
Views: 449

Re: Rollover IRA Questions

A potential problem you might face is that the MAGI limit for making a Roth IRA contribution is very low for MFS in your case. Normally that could be worked around with the backdoor Roth, but your rollovers would cause a problem there. Thank you for the response. Why would it cause a problem? The r...
by Earl Lemongrab
Sun Oct 21, 2018 2:38 pm
Forum: Investing - Help with Personal Investments
Topic: Rollover IRA Questions
Replies: 7
Views: 449

Re: Rollover IRA Questions

A potential problem you might face is that the MAGI limit for making a Roth IRA contribution is very low for MFS in your case. Normally that could be worked around with the backdoor Roth, but your rollovers would cause a problem there.
by Earl Lemongrab
Sun Oct 21, 2018 2:33 pm
Forum: Investing - Help with Personal Investments
Topic: roth conversion and other income tax question
Replies: 7
Views: 747

Re: roth conversion and other income tax question

Thank you for the chart. It is very helpful. So it looks like QDIV and LTCG are stacked on top of ordinary income which includes roth conversion income, interest income, and non-qualified dividend income. It looks like deductions are applied first to ordinary income and QDIV and LTCG are last. Righ...
by Earl Lemongrab
Sun Oct 21, 2018 2:23 pm
Forum: Investing - Help with Personal Investments
Topic: Do Any Annuities Offer a "Free Lunch"?
Replies: 21
Views: 1727

Re: Do Any Annuities Offer a "Free Lunch"?

BL wrote:
Sat Oct 20, 2018 12:06 pm
Sounds like he would get the free lunch with commissions that come from your premiums.
That was my thought. The OP didn't specify free lunch for whom.
by Earl Lemongrab
Sun Oct 21, 2018 2:10 pm
Forum: Investing - Help with Personal Investments
Topic: Mutual funds or ETFs in taxable accounts?
Replies: 12
Views: 1033

Re: Mutual funds or ETFs in taxable accounts?

My holdings outside of the 401(k) are all ETFs. I like to move my accounts around to generate transfer bonuses at various brokerages. ETFs make that easy.
by Earl Lemongrab
Sun Oct 21, 2018 1:40 pm
Forum: Investing - Theory, News & General
Topic: PhysicianOnFire blog: "Tax Loss Harvesting with Vanguard: A Step by Step Guide"
Replies: 33
Views: 3585

Re: "Tax Loss Harvesting with Vanguard: A Step by Step Guide"

While this is the method I recommend, TLH does not require purchasing a replacement asset within the wash sale period. (In fact, TLH using replacement index funds that perform practically identically to index funds sold with losses actually violates the whole intent of the wash sale rule, though it...
by Earl Lemongrab
Sun Oct 21, 2018 1:13 pm
Forum: Investing - Theory, News & General
Topic: Card/Account churning to prevent investment tinkering?
Replies: 10
Views: 991

Re: Card/Account churning to prevent investment tinkering?

I like the brokerage bonuses, and go low-level on the credit cards. But that doesn't have anything to do with an urge to do something else. I set up my portfolio and investing plan years ago. I have only made a few changes since, one related to change in the fund lineup in the Megacorp 401(k) and ne...
by Earl Lemongrab
Sun Oct 21, 2018 12:52 pm
Forum: Investing - Theory, News & General
Topic: Avoiding Wash Sale: FSTVX -> ITOT
Replies: 6
Views: 737

Re: Avoiding Wash Sale: FSTVX -> ITOT

This is an often-debated topic. Most adhere to the "different index, not substantially identical" philosophy. I'm a bit more extreme. I don't believe that funds from different companies are SI even if they follow the same index. At the end of the day, you have to make your own decision. There's very...
by Earl Lemongrab
Sat Oct 20, 2018 11:13 pm
Forum: Investing - Theory, News & General
Topic: The Final, Definitive Thread on Brokerage Transfer Bonuses
Replies: 1268
Views: 216407

Re: The Final, Definitive Thread on Brokerage Transfer Bonuses

Yeah I would convert them to ETFs at Vanguard first. Then you aren't out of the market during the transfer.
by Earl Lemongrab
Sat Oct 20, 2018 7:18 pm
Forum: Investing - Theory, News & General
Topic: The Final, Definitive Thread on Brokerage Transfer Bonuses
Replies: 1268
Views: 216407

Re: The Final, Definitive Thread on Brokerage Transfer Bonuses

I love this thread. It motivated me to get a opening bonus for my smallish Merril Edge taxable account and then two retention bonuses. I've been very pleased at how well it's worked out. Lots of good back-and-forth with tips and experiences. The goal was to get more people aware of the bonuses and ...
by Earl Lemongrab
Sat Oct 20, 2018 7:15 pm
Forum: Investing - Theory, News & General
Topic: The Final, Definitive Thread on Brokerage Transfer Bonuses
Replies: 1268
Views: 216407

Re: The Final, Definitive Thread on Brokerage Transfer Bonuses

Apex at TDA is one of those things you need to ask to be enrolled in, it doesn't happen automatically when you hit 100k. It's also per account, not overall. However, I think once you get it then you have Apex on that account regardless of level.
by Earl Lemongrab
Sat Oct 20, 2018 11:55 am
Forum: Investing - Theory, News & General
Topic: Total Bond Market Fund - interest rates rising!
Replies: 88
Views: 8218

Re: Total Bond Market Fund - interest rates rising!

I guess that's the problem with the so-called bull market in bonds. Some people seem to have gotten the idea that bond funds would always go up and never down. Oddly, people were happy to invest in them all this time, but now that they've actually become better investments (higher yield, lower share...
by Earl Lemongrab
Sat Oct 20, 2018 11:51 am
Forum: Investing - Theory, News & General
Topic: Total Bond Market Fund - interest rates rising!
Replies: 88
Views: 8218

Re: Total Bond Market Fund - interest rates rising!

You don't need to move around to chase CD interest rates. You can buy brokered CDs in your IRA. It is quick and easy, and the rates are competitive with the best direct CDs. Brokered CDs also have the advantage that they do not auto-reinvest at some low rate if you aren't paying close enough attent...
by Earl Lemongrab
Sat Oct 20, 2018 11:48 am
Forum: Investing - Help with Personal Investments
Topic: Transfer VTSAX & VTIAX to Chase You Invest?
Replies: 28
Views: 2139

Re: Transfer VTSAX & VTIAX to Chase You Invest?

Also, check their fee schedule - as you I got the same UR enticement promotion for opening the account. However when looking at fee schedule I was $75 fee when you transfer securities out. Link https://www.chase.com/content/dam/chase-ux/documents/personal/investments/youinvest_trade_fee_commish_sch...
by Earl Lemongrab
Sat Oct 20, 2018 12:31 am
Forum: Investing - Help with Personal Investments
Topic: Is there a benefit of investing in Traditional IRA if company provides 401K
Replies: 23
Views: 1780

Re: Is there a benefit of investing in Traditional IRA if company provides 401K

Unfortunately from a tax perspective (though fortunate from a savings perspective) if you have a sizable tIRA balance already, the "backdoor" Roth isn't much of an option. Hasn't been mentioned so OP should be aware just in case... True. One workaround is to roll tIRAs into a 401k if available. The...
by Earl Lemongrab
Fri Oct 19, 2018 5:12 pm
Forum: Investing - Theory, News & General
Topic: Total Bond Market Fund - interest rates rising!
Replies: 88
Views: 8218

Re: Total Bond Market Fund - interest rates rising!

If you're putting money in now, the bond index is the best value it's been in a while. Yields are up and share price is down.
by Earl Lemongrab
Fri Oct 19, 2018 2:27 pm
Forum: Investing - Help with Personal Investments
Topic: New Investor Advice
Replies: 3
Views: 243

Re: New Investor Advice

$51 won't buy you any VTI. The share price is nearly triple that. You can't buy fractional shares of ETFs at Vanguard (or most brokerages) except through reinvestment.
by Earl Lemongrab
Fri Oct 19, 2018 2:22 pm
Forum: Investing - Help with Personal Investments
Topic: Roth conversion in 401k then Roth 401k to Roth Ira rollover - when can you withdrawal? and with what penalties/fees?
Replies: 6
Views: 338

Re: Roth conversion in 401k then Roth 401k to Roth Ira rollover - when can you withdrawal? and with what penalties/fees?

Employee deferrals (pretax contributions) or Roth contributions can't be rolled over until you are age 59-1/2 (requires plan support) or you leave the employer. It doesn't matter if you convert those to Roth or not. Employer contributions can be rolled over at any time if the plan allows.
by Earl Lemongrab
Fri Oct 19, 2018 1:12 pm
Forum: Investing - Theory, News & General
Topic: Total Bond Market Fund - interest rates rising!
Replies: 88
Views: 8218

Re: Total Bond Market Fund - interest rates rising!

You can buy CDs in IRAs, but it's not always easy especially if you need to move around to chase the best interest rates. In my case, I have about 800k in fixed income, currently all in the 401(k) split between bond index and stable value. The latter is paying around 2.65% annualized. YTD, they've j...
by Earl Lemongrab
Fri Oct 19, 2018 11:05 am
Forum: Investing - Help with Personal Investments
Topic: Moving to company that allows Mega Backdoor Roth Conversion - Any prep needed?
Replies: 21
Views: 1433

Re: Moving to company that allows Mega Backdoor Roth Conversion - Any prep needed?

Final question (I hope) Will it matter that I plan to roll my old employer 401k into my new employer 401k? ie will it impact my ability to do the Mega Backdoor Roth Conversion? Plans have a lot of leeway in some things. Theoretically they could require a pro-rata distribution of the rollover and af...
by Earl Lemongrab
Fri Oct 19, 2018 10:29 am
Forum: Investing - Help with Personal Investments
Topic: Transfer VTSAX & VTIAX to Chase You Invest?
Replies: 28
Views: 2139

Re: Transfer VTSAX & VTIAX to Chase You Invest?

AlphaLess wrote:
Fri Oct 19, 2018 8:52 am
Ah, ok, that tax thing is new to me.
For credit card bonuses, never received a 1099.
Thanks for pointing out.
Credit card bonuses are considered rebates of some sort.
by Earl Lemongrab
Fri Oct 19, 2018 10:28 am
Forum: Investing - Help with Personal Investments
Topic: Is there a benefit of investing in Traditional IRA if company provides 401K
Replies: 23
Views: 1780

Re: Is there a benefit of investing in Traditional IRA if company provides 401K

nolesrule wrote:
Fri Oct 19, 2018 7:24 am
You cannot rollover your pre-tax 401k contributions and their earnings to an IRA while you are still employed with the company.
Unless you've reached age 59-1/2 and the plan allows it. Also applies to Roth contributions.
by Earl Lemongrab
Thu Oct 18, 2018 6:38 pm
Forum: Personal Consumer Issues
Topic: What Book Are You Currently Reading? Part VI
Replies: 3346
Views: 1005085

Re: What Book Are You Currently Reading? Part VI

The Invisible Library by Genevieve Cogman. More information here:

viewtopic.php?f=11&t=146455&start=300#p4172014
by Earl Lemongrab
Thu Oct 18, 2018 4:19 pm
Forum: Investing - Help with Personal Investments
Topic: What the heck to do with $2M windfall
Replies: 22
Views: 4024

Re: What the heck to do with $2M windfall

There's no real difference between having the money for a short time or a long one, other than psychology. What you need to do now is figure out your plan going forward. If the idea is to invest in a diversified portfolio, then you do just like anyone else and figure out the asset allocation. Then y...
by Earl Lemongrab
Thu Oct 18, 2018 3:50 pm
Forum: Personal Finance (Not Investing)
Topic: Mega Backdoor Roth Mechanics
Replies: 23
Views: 2799

Re: Mega Backdoor Roth Mechanics

So I pay no taxes when it goes from "after tax" portion of my 401k into my tIRA. But then I would pay taxes on those earnings when they go from my tIRA into my Roth correct? So I see why you are saying just pass directly to Roth from the "after tax" 401k. OR I could then tx the tIRA earnings (from ...
by Earl Lemongrab
Thu Oct 18, 2018 3:47 pm
Forum: Investing - Theory, News & General
Topic: What do index funds do when firm's market cap drops?
Replies: 17
Views: 1388

Re: What do index funds do when firm's market cap drops?

abc132 wrote:
Thu Oct 18, 2018 1:15 am
If a company pays dividends, and those dividends must be reinvested in weighted portfolio, would the top performers receive a benefit from the dividend payers?
Dividends are not reinvested in typical mutual funds or ETFs. They are distributed to the shareholders.
by Earl Lemongrab
Thu Oct 18, 2018 3:40 pm
Forum: Personal Finance (Not Investing)
Topic: Where would you go for financial guidance if you win the Megamillions?
Replies: 146
Views: 11761

Re: Where would you go for financial guidance if you win the Megamillions?

Before you cash the ticket, security and the best tax attorney you can find should be retained. I'd get a top-notch large security firm and 24-hour bodyguards. There is no reason for you to ever be bothered by shirt-tale relations or sob stories. You can set up a charitable foundation and have all o...
by Earl Lemongrab
Thu Oct 18, 2018 3:21 pm
Forum: Personal Finance (Not Investing)
Topic: Mega Backdoor Roth Mechanics
Replies: 23
Views: 2799

Re: Mega Backdoor Roth Mechanics

Roll earnings into my tIRA (paying taxes on that) - fund that up to 6500 from other accounts - then backdoor that into my Roth IRA. If you're going to pay taxes (and you wouldn't pay tax when it goes into the TIRA) on it anyway due to regular backdoor, might as well roll the entire distribution int...
by Earl Lemongrab
Thu Oct 18, 2018 3:16 pm
Forum: Personal Finance (Not Investing)
Topic: Masters Degree Advice
Replies: 25
Views: 2383

Re: Masters Degree Advice

With many companies, getting a Master's while you work there won't get you as much as when you have one and get the job. However, it's also the case that many will take back the tuition reimbursement if you leave within a certain period. So moving to another company might make sense, but you'll need...
by Earl Lemongrab
Thu Oct 18, 2018 3:00 pm
Forum: Investing - Help with Personal Investments
Topic: Moving to company that allows Mega Backdoor Roth Conversion - Any prep needed?
Replies: 21
Views: 1433

Re: Moving to company that allows Mega Backdoor Roth Conversion - Any prep needed?

#7...for some reason, I thought that didn’t apply. Maybe a mega is not really a conversion, but rather a transfer. ? I will want to double check it. Or maybe I didn’t care about it because I could never do it until my next job. Ha ha Well if you have gains on aftertax contributions, it is difficult...
by Earl Lemongrab
Thu Oct 18, 2018 2:59 pm
Forum: Personal Consumer Issues
Topic: Good Modern Science Fiction
Replies: 321
Views: 45233

Re: Good Modern Science Fiction

Becky Chambers has an excellent series (Wayfarers) which starts with "The Long Way to a Small, Angry Planet" It's unusual in that the three books are not sequels but are very different books that happen to be set in the same (very fascinating) future. I was highly disappointed in books #2 and #3 be...
by Earl Lemongrab
Thu Oct 18, 2018 12:11 pm
Forum: Personal Consumer Issues
Topic: Good Modern Science Fiction
Replies: 321
Views: 45233

Re: Good Modern Science Fiction

I started The Invisible Library by Genevieve Cogman, the first of a series. I don't normally read fantasy, but this was highly recommended on the rec.arts.sf.written usenet group. It's a library e-book, so little cost to me. This is a multiverse setting. The alternate worlds have various levels of t...
by Earl Lemongrab
Thu Oct 18, 2018 10:28 am
Forum: Personal Finance (Not Investing)
Topic: Mega Backdoor Roth Mechanics
Replies: 23
Views: 2799

Re: Mega Backdoor Roth Mechanics

krafty81 wrote:
Thu Oct 18, 2018 9:26 am
Thanks for the info...another basic question, this obviously allows you to put more that 6500 into your Roth per year, right?
It has no relationship to your Roth contribution. This is a 401(k) contribution and a rollover to IRA. There is no limit on the latter.
by Earl Lemongrab
Wed Oct 17, 2018 11:20 pm
Forum: Investing - Help with Personal Investments
Topic: Is there a benefit of investing in Traditional IRA if company provides 401K
Replies: 23
Views: 1780

Re: Is there a benefit of investing in Traditional IRA if company provides 401K

When younconvert the $5500, is that added to your gross income and you pay 24% (if in that marginal bracket) of the $5500 to the govt the year youbconvert the $5500 to a Roth? On the bigleheads wiki it says “since it was only in the account a minimal time, the taxes should be negligible” but in my ...
by Earl Lemongrab
Wed Oct 17, 2018 7:01 pm
Forum: Personal Finance (Not Investing)
Topic: Mega Backdoor Roth Mechanics
Replies: 23
Views: 2799

Re: Mega Backdoor Roth Mechanics

I have been researching this. According to my company (Vanguard Plan), I can only tx after tax funds out of my 401k once per year. So, if I fund it all year, it is going to make money, then I owe taxes on those earnings if I want to tx the whole "after tax" contribution amount into a Roth. So reall...
by Earl Lemongrab
Wed Oct 17, 2018 2:47 pm
Forum: Investing - Help with Personal Investments
Topic: Is there a benefit of investing in Traditional IRA if company provides 401K
Replies: 23
Views: 1780

Re: Is there a benefit of investing in Traditional IRA if company provides 401K

You wouldn't be able to deduct a TIRA contribution. However, if you have no other IRAs with pretax amounts, you can use the backdoor Roth method, by making a non-deductible contribution and immediately converting to a Roth IRA.
by Earl Lemongrab
Wed Oct 17, 2018 1:29 pm
Forum: Personal Consumer Issues
Topic: Jury duty - already booked vacation
Replies: 51
Views: 5352

Re: Jury duty - already booked vacation

I had my first jury summons when I was 60. Unfortunately, it was the last day of working at Megacorp, which wasn't good at all. However, they allowed one automatic postponement, for which you could select a replacement week (although they didn't guarantee it). I chose a week with nothing scheduled a...
by Earl Lemongrab
Wed Oct 17, 2018 12:53 pm
Forum: Investing - Theory, News & General
Topic: Fidelity Full View transition to eMoney
Replies: 144
Views: 16052

Re: Fidelity Full View transition to eMoney

I have been kind of ignoring that for the time being. How is the transition doing? Are things settling down finally? I used Full View reports to feed my asset allocation worksheet, so when things are finalized I will need to look at the situation again.
by Earl Lemongrab
Tue Oct 16, 2018 11:40 pm
Forum: Investing - Help with Personal Investments
Topic: Transfer VTSAX & VTIAX to Chase You Invest?
Replies: 28
Views: 2139

Re: Transfer VTSAX & VTIAX to Chase You Invest?

Seriously? You would go to the trouble of moving a $75,000 portfolio to Chase for a mere 60,000 Ultimate Rewards points? I don't consider that to be much of a deal. Chase offers 60,000 UR points (and occasionally more) just to open a new credit card. My advice would be to leave your portfolio where...
by Earl Lemongrab
Tue Oct 16, 2018 7:56 pm
Forum: Investing - Theory, News & General
Topic: The Final, Definitive Thread on Brokerage Transfer Bonuses
Replies: 1268
Views: 216407

Re: The Final, Definitive Thread on Brokerage Transfer Bonuses

You're better off transferring ETFs to Edge. You'll get free trades to start and probably qualify for Preferred Rewards to get more.
by Earl Lemongrab
Tue Oct 16, 2018 12:10 pm
Forum: Investing - Help with Personal Investments
Topic: Tax loss harvesting: Long term vs. short term losses.
Replies: 15
Views: 1579

Re: Tax loss harvesting: Long term vs. short term losses.

I wouldn't go that far. The IRS has specifically stated that it applies to IRAs, but didn't say that the rule doesn't apply to employer-sponsored accounts that aren't IRAs. It is hardly established conclusively that 401k etc. purchases are definitely not wash sale bait as you imply, and given the p...
by Earl Lemongrab
Tue Oct 16, 2018 12:03 pm
Forum: Investing - Help with Personal Investments
Topic: Transfer VTSAX & VTIAX to Chase You Invest?
Replies: 28
Views: 2139

Re: Transfer VTSAX & VTIAX to Chase You Invest?

That's a question for Chase. Some custodians will allow you to transfer Admiral index funds in, and even reinvest, but not buy new shares otherwise.
by Earl Lemongrab
Mon Oct 15, 2018 3:39 pm
Forum: Investing - Help with Personal Investments
Topic: First time TLH Questions, constrained by spouse's work
Replies: 17
Views: 1342

Re: First time TLH Questions, constrained by spouse's work

How much commission would there be on those Vanguard ETFs? You might ping the custodian to see they'll give you some free trades to accomplish this. As far as wash sales, no one knows. The custodians are required to report exact washes (same CUSIP) in the same account. As far as different funds, the...
by Earl Lemongrab
Mon Oct 15, 2018 3:31 pm
Forum: Investing - Help with Personal Investments
Topic: Complete newbie here! Would like help determining Roth vs Traditional IRA...
Replies: 11
Views: 645

Re: Complete newbie here! Would like help determining Roth vs Traditional IRA...

Not nearly enough information. Do you either or both of you have 401(k) or similar plans? That can have a huge impact on whether you can deduct Traditional IRA contributions.
by Earl Lemongrab
Mon Oct 15, 2018 3:23 pm
Forum: Personal Finance (Not Investing)
Topic: free dinner investing seminar
Replies: 368
Views: 33047

Re: free dinner investing seminar

I eat the free samples of Gooey Butter Cake at the supermarket even though I'm not going to buy[*] it. I don't feel guilty.

* It's not good for me, but if I did want one I'd bake it myself.
by Earl Lemongrab
Mon Oct 15, 2018 2:54 pm
Forum: Investing - Help with Personal Investments
Topic: Collective Investment Trust choice in 401k
Replies: 17
Views: 669

Re: Collective Investment Trust choice in 401k

Megacorp uses mostly CITs, some index. They have a page on the web site that shows the performance for all of them: one month, YTD, one year, three years, and five years. All I have to do is compare that with the total return for an equivalent index fund. The performance should be nearly identical. ...
by Earl Lemongrab
Mon Oct 15, 2018 2:12 pm
Forum: Personal Finance (Not Investing)
Topic: When to stop putting money into an older vehicle
Replies: 88
Views: 5829

Re: When to stop putting money into an older vehicle

delamer wrote:
Sun Oct 14, 2018 1:55 pm
First, I would not drive a 15 year old vehicle. There have been too many safety improvements in the intervening years.
Whew! Glad you didn't tell me when the Bronco was 15 years old. Now it's 23, so I don't need to worry.