Search found 5790 matches

by Earl Lemongrab
Sun Dec 09, 2018 9:09 pm
Forum: Investing - Theory, News & General
Topic: You already own international stocks with VTSMX etc [Vanguard Total Stock Market]
Replies: 52
Views: 3809

Re: You already own international stocks with VTSMX etc [Vanguard Total Stock Market]

I think it's just a way for people to justify what they want to do, that being not invest in Internationals because of poor recent performance. If they were outpacing US stocks, we wouldn't be hearing this kind of talk. I don't know. Jack Bogle has had this same opinion for many years. I'm mainly t...
by Earl Lemongrab
Sun Dec 09, 2018 9:08 pm
Forum: Investing - Help with Personal Investments
Topic: 0% Long Term Capital Gain rate?
Replies: 11
Views: 1149

Re: 0% Long Term Capital Gain rate?

I thought all forms of income were lumped together when determining one's tax bracket. Is ordinary income (wages, social security, interest, short term capital gain) somehow a separate bucket from this other form of income (long term capital gain & qualified dividends)? Long-term gains and qualifie...
by Earl Lemongrab
Sun Dec 09, 2018 8:14 pm
Forum: Investing - Help with Personal Investments
Topic: 0% Long Term Capital Gain rate?
Replies: 11
Views: 1149

Re: 0% Long Term Capital Gain rate?

Don't forget that qualified dividends occupy the same "space" as long-term gains. If you have substantial taxable stock holdings, then some of that 0% space is already taken up by the QDIVs.
by Earl Lemongrab
Sun Dec 09, 2018 8:10 pm
Forum: Investing - Help with Personal Investments
Topic: Considerations for rolling an IRA into employers 401K
Replies: 7
Views: 548

Re: Considerations for rolling an IRA into employers 401K

Can the backdoor roth contribution be completed before the tIRA gets rolled over to the employer plan as long as the tIRA balance is zero by 12/31 of the same year? can somebody layout the steps in order? You can, and in the past it was relatively common to do so. However, the recent tax law change...
by Earl Lemongrab
Sun Dec 09, 2018 7:40 pm
Forum: Investing - Theory, News & General
Topic: You already own international stocks with VTSMX etc [Vanguard Total Stock Market]
Replies: 52
Views: 3809

Re: You already own international stocks with VTSMX etc [Vanguard Total Stock Market]

I think it's just a way for people to justify what they want to do, that being not invest in Internationals because of poor recent performance. If they were outpacing US stocks, we wouldn't be hearing this kind of talk.
by Earl Lemongrab
Sun Dec 09, 2018 1:37 pm
Forum: Personal Finance (Not Investing)
Topic: Is 401k or IRA better? and how do you value the backdoor Roth?
Replies: 7
Views: 711

Re: Is 401k or IRA better? and how do you value the backdoor Roth?

lakpr wrote:
Sat Dec 08, 2018 10:17 pm
I believe it is an IRS rule or law that, if the balance in the 401(k) plan is greater than a certain threshold ($10k?), then you cannot be forced to move the money out of the plan.
Less than 5k. However, the plan can make you pay any costs that the employer was picking up.
by Earl Lemongrab
Sun Dec 09, 2018 1:30 pm
Forum: Personal Finance (Not Investing)
Topic: Skipping last COBRA payment
Replies: 25
Views: 2479

Re: Skipping last cobra payment

But the end result is the same. As you said in a subsequent comment, just because you don't make a claim doesn't mean that you aren't using the "service." In my case, I was effectively using the service during that month gap in the same way that OP would be using the service in the final month of h...
by Earl Lemongrab
Sun Dec 09, 2018 1:28 pm
Forum: Personal Finance (Not Investing)
Topic: Skipping last COBRA payment
Replies: 25
Views: 2479

Re: Skipping last cobra payment

Interestingly, taking advantage of the "free" option is exactly what my former employer's HR department advised me to do when I retired. I retired on the 5th of the month, and Medicare was not effective until the 1st day of the next month. I had the option of taking COBRA for the 25 days between re...
by Earl Lemongrab
Sun Dec 09, 2018 11:12 am
Forum: Personal Finance (Not Investing)
Topic: Skipping last COBRA payment
Replies: 25
Views: 2479

Re: Skipping last cobra payment

I take a different position than many of the folks who have posted here. You're being given an option to receive insurance coverage and to pay in arrears. This gives you the chance to get one month of "free" coverage at the end of the period - you can pay for it if you need it, and not pay for it i...
by Earl Lemongrab
Sun Dec 09, 2018 11:09 am
Forum: Personal Finance (Not Investing)
Topic: Skipping last COBRA payment
Replies: 25
Views: 2479

Re: Skipping last cobra payment

I received the same advice from both: sign up for cobra but hold off on making the payment. Or maybe it was to hold off on signing up in the first place, as the coverage is retroactive. I can’t recall for sure. But I had 30-60 days to do so, and if I didn’t then my coverage would lapse effective th...
by Earl Lemongrab
Sat Dec 08, 2018 8:16 pm
Forum: Investing - Help with Personal Investments
Topic: Solid my entire portfolio 12/3/18
Replies: 49
Views: 8343

Re: Solid my entire portfolio 12/3/18

This phrase "ordinary investors" is arbitrary and not helpful. What is the line between ordinary and not ordinary? Where is the exact edge that makes one ordinary vs. not ordinary? There isn't one. Its a continuum, like virtually any talent or skill in life. Lets accept something straightforward. P...
by Earl Lemongrab
Sat Dec 08, 2018 3:12 pm
Forum: Investing - Help with Personal Investments
Topic: Retiring in 2 weeks, Traditional 401k
Replies: 92
Views: 5595

Re: Retiring in 2 weeks, Traditional 401k

A few years ago, the rule was that you couldn't access ACA plans when your COBRA plan ran out; you had to wait until open enrollment, but that may have been fixed. I don't think that was ever true, but it certainly isn't now. Losing COBRA because it has run out qualifies you for a special enrollmen...
by Earl Lemongrab
Sat Dec 08, 2018 3:06 pm
Forum: Investing - Help with Personal Investments
Topic: Best Re-balancing technique . . .
Replies: 20
Views: 1348

Re: Best Re-balancing technique . . .

With my portfolio, I wouldn't be doing any rebalance. I use the 5/25 rule as promoted by Larry Swedroe. Use the deltas to direct where new money goes. For what it's worth, I use a spreadsheet for my slice-and-dice. Why wouldn't you? Keeps track of the deltas in each category and gives the bottom lin...
by Earl Lemongrab
Sat Dec 08, 2018 2:48 pm
Forum: Investing - Help with Personal Investments
Topic: Can I transfer 2019 IRA money to Vanguard right now so I can put it in Jan 2?
Replies: 15
Views: 1493

Re: Can I transfer 2019 IRA money to Vanguard right now so I can put it in Jan 2?

To the OP, I'd just get the bank account linkage set up if you don't have it already, then pull cash on Jan 2.
by Earl Lemongrab
Sat Dec 08, 2018 2:47 pm
Forum: Investing - Help with Personal Investments
Topic: Can I transfer 2019 IRA money to Vanguard right now so I can put it in Jan 2?
Replies: 15
Views: 1493

Re: Can I transfer 2019 IRA money to Vanguard right now so I can put it in Jan 2?

You can't avoid capital gains tax on a fund by "transferring" it to an IRA. Many have come up with that idea and found out that it doesn't work. All contributions are in cash, so you'd be selling the investment in taxable (a taxable transaction), transferring cash, and buying the new holding in the ...
by Earl Lemongrab
Sat Dec 08, 2018 2:33 pm
Forum: Investing - Help with Personal Investments
Topic: Quick Wash Sale Question
Replies: 6
Views: 373

Re: Quick Wash Sale Question

The question of wash sales in IRAs can be hazy. In taxable accounts, the "replacement shares" concept is vital because the basis is transferred. Well, in an IRA no basis transfer takes place, the loss is just disallowed. So it's not entirely clear that selling the shares bought within the prohibited...
by Earl Lemongrab
Sat Dec 08, 2018 1:46 pm
Forum: Personal Finance (Not Investing)
Topic: Skipping last COBRA payment
Replies: 25
Views: 2479

Re: Skipping last cobra payment

The situations are not symmetric. When you defer initial COBRA payments, you do NOT have insurance. You can get it retroactively by paying, but you are not insured. In the case presented, the OP has insurance coverage that he or she later refuses to pay for. I believe that this is actually dishonest...
by Earl Lemongrab
Sat Dec 08, 2018 1:30 pm
Forum: Personal Finance (Not Investing)
Topic: Roth Conversions
Replies: 12
Views: 804

Re: Roth Conversions

Do you have significant taxable holdings? If so, you might not have as much 12% room as you think. In my case, while I am in the 12% federal bracket, the qualified dividends I get in taxable more than fills up the remaining space. So every dollar I add to ordinary income, like a conversion, not only...
by Earl Lemongrab
Sat Dec 08, 2018 1:25 pm
Forum: Investing - Help with Personal Investments
Topic: Solid my entire portfolio 12/3/18
Replies: 49
Views: 8343

Re: Solid my entire portfolio 12/3/18

BRK has $100B in cash and Buffett is not deploying it until he finds better value as the Market appears overvalued. It appears he is trying to find a good entry point (Market Time). I think it is pretty dangerous to assume that you know what Berkshire Hathaway is doing and how that relates to the i...
by Earl Lemongrab
Sat Dec 08, 2018 11:28 am
Forum: Investing - Help with Personal Investments
Topic: Solid my entire portfolio 12/3/18
Replies: 49
Views: 8343

Re: Solid my entire portfolio 12/3/18

The wealthiest investors MARKET TIMED. This is true in the real estate world (Sam Zelle and Robert Kiyosaki as 2 examples) and the stock market world (Warren Buffett and Ray Dalio). Market/location/business timing makes fortunes. I never understood the almost socialist approach that all people are ...
by Earl Lemongrab
Sat Dec 08, 2018 1:48 am
Forum: Investing - Help with Personal Investments
Topic: Solid my entire portfolio 12/3/18
Replies: 49
Views: 8343

Re: Solid my entire portfolio 12/3/18

That makes no sense. Are you selling everything to DCA into the market? Absent taxes, there's no difference between not investing cash and selling investments to cash. He's already in all cash. He asked for thoughts on how to get back into the market. I was asking if YOU were selling everything to ...
by Earl Lemongrab
Fri Dec 07, 2018 6:04 pm
Forum: Investing - Help with Personal Investments
Topic: ETFs vs Mutual Funds in Retirement Accounts
Replies: 19
Views: 1319

Re: ETFs vs Mutual Funds in Retirement Accounts

We were discussing attempts at market timing intraday, we were not discussing panic selling. I don't use ETFs because I don't want to trade intraday at all, am fine with transactions at end of day pricing, prefer the simpler trading mechanics of traditional mutual funds, and and am satisfied with t...
by Earl Lemongrab
Fri Dec 07, 2018 12:46 pm
Forum: Investing - Help with Personal Investments
Topic: ETFs vs Mutual Funds in Retirement Accounts
Replies: 19
Views: 1319

Re: ETFs vs Mutual Funds in Retirement Accounts

With traditional mutual funds you avoid the frustrations of intraday trading and fruitless attempts to time the stock market . You can't time the market with mutual funds? Huh. As you can see we were all discussing market timing intraday. But what real difference does that make? People who will pan...
by Earl Lemongrab
Thu Dec 06, 2018 7:09 pm
Forum: Investing - Help with Personal Investments
Topic: ETFs vs Mutual Funds in Retirement Accounts
Replies: 19
Views: 1319

Re: ETFs vs Mutual Funds in Retirement Accounts

If you later decide to transfer assets in kind to an account at a different broker, ETFs might be easier to transfer. For example, if you decide to transfer your assets from Vanguard to TD Ameritrade or Merrill Edge for improved customer service or a new account bonus . That's the big reason for me...
by Earl Lemongrab
Thu Dec 06, 2018 7:07 pm
Forum: Investing - Help with Personal Investments
Topic: ETFs vs Mutual Funds in Retirement Accounts
Replies: 19
Views: 1319

Re: ETFs vs Mutual Funds in Retirement Accounts

ruralavalon wrote:
Thu Dec 06, 2018 4:49 pm
With traditional mutual funds you avoid the frustrations of intraday trading and fruitless attempts to time the stock market.
You can't time the market with mutual funds? Huh.
by Earl Lemongrab
Thu Dec 06, 2018 6:58 pm
Forum: Investing - Help with Personal Investments
Topic: Solid my entire portfolio 12/3/18
Replies: 49
Views: 8343

Re: Solid my entire portfolio 12/3/18

Personally I'd dollar-cost-average back in, once you've chosen your asset allocation. Something like 20% every 2 weeks until you're fully back in. Pushing 100% in today during this Trump/China/yield inversion scare-fest would bother me. At TD Ameritrade, with a 3-fund portfolio, this would cost me ...
by Earl Lemongrab
Thu Dec 06, 2018 4:28 pm
Forum: Personal Finance (Not Investing)
Topic: Realize Losses vs Pay More Taxes
Replies: 7
Views: 662

Re: Realize Losses vs Pay More Taxes

ivk5 wrote:
Thu Dec 06, 2018 2:15 pm
My guess is OP's investment income includes significant capital gains (from sales and/or CG distributions). Accountant may be suggesting TLH to avoid tax on the gains.

But with almost no info, a guess is all it is.
Right, some clarification on the overall situation would be helpful.
by Earl Lemongrab
Thu Dec 06, 2018 3:37 pm
Forum: Investing - Theory, News & General
Topic: U.S. stocks in freefall
Replies: 8445
Views: 1662861

Re: U.S. stocks in freefall

It's awful! Or is it? Currently The S&P 500 is higher than it was 11/23, 10/29, 5/3, the whole first half of April, etc. Choppy year, no telling where it will go from here.

As far a terrible year to retire, is it worse than 2008?
by Earl Lemongrab
Thu Dec 06, 2018 1:51 am
Forum: Investing - Help with Personal Investments
Topic: Silly 401k Question: Roll out rollover?
Replies: 9
Views: 662

Re: Silly 401k Question: Roll out rollover?

I know that I can't roll out my pre-tax contributions or my employer's contributions while I'm still employed. You don't know the highlighted part because it isn't true. Your plan might not allow it, but the law doesn't prohibit it. However, I rolled my account from my previous employer's 401k into...
by Earl Lemongrab
Thu Dec 06, 2018 1:44 am
Forum: Investing - Help with Personal Investments
Topic: solo 401k / simple ira / backdoor roth ira options
Replies: 4
Views: 452

Re: solo 401k / simple ira / backdoor roth ira options

Would it be easier if I see if I can opt out of the non-elective employer contributions? I’m not sure if this is legal? But, if I can, I can just open a solo 401k and continue with the backdoor Roth IRA. On a side note, he said the simple Ira would be a 3% non elective employer contribution, just l...
by Earl Lemongrab
Thu Dec 06, 2018 1:33 am
Forum: Investing - Help with Personal Investments
Topic: TLH pair for IJS (ishares S&P small cap value)
Replies: 21
Views: 1106

Re: TLH pair for IJS (ishares S&P small cap value)

Either way, if I’m going to make up things to worry about it’s not going to be worrying that my audit is the one that breaks 40 years of precedence. I'd be pleased as can be if I did get flagged! Besides providing useful information to the nation, I'd be a minor celebrity here. And it would have li...
by Earl Lemongrab
Thu Dec 06, 2018 1:26 am
Forum: Investing - Help with Personal Investments
Topic: TLH pair for IJS (ishares S&P small cap value)
Replies: 21
Views: 1106

Re: TLH pair for IJS (ishares S&P small cap value)

I cannot imagine how funds could more more "identical" than by following the identical index. They could be share classes of the same fund, like VTI and VTSAX. Those are not identical by any stretch, as one is an ETF and the other a traditional mutual fund, but I think likely that they are substant...
by Earl Lemongrab
Thu Dec 06, 2018 1:17 am
Forum: Investing - Help with Personal Investments
Topic: TLH pair for IJS (ishares S&P small cap value)
Replies: 21
Views: 1106

Re: TLH pair for IJS (ishares S&P small cap value)

While it's accurate to say "they never have", it's also the case that the IRS has never really clarified what that rule means, so it's not like SLYV <--- IJS is necessarily as safe as VBR <--- IJS. Exactly. People have "decided" on the forum that different index == not substantially identical. Ther...
by Earl Lemongrab
Wed Dec 05, 2018 5:17 pm
Forum: Investing - Help with Personal Investments
Topic: Tax Loss Harvesting [Will this trigger a wash sale?]
Replies: 6
Views: 348

Re: Tax Loss Harvesting [Will this trigger a wash sale?]

The most accurate answer is that no one knows. The IRS has provided very little guidance on what would be considered substantially identical securities. There are essentially no cases that anyone has reported where the IRS has ruled two different funds to be substantially identical. That only means ...
by Earl Lemongrab
Mon Dec 03, 2018 5:13 pm
Forum: Investing - Help with Personal Investments
Topic: Questions about leaving your broker [when cost basis unknown]
Replies: 2
Views: 291

Re: Questions about leaving your broker [when cost basis unknown]

It's true that back in the days of uncovered shares it was up to the taxpayer to maintain the basis. Of course, most taxpayers didn't know that, especially ones using a broker. To the OP, how far back can your broker provide statements? Have any sales taken place? Really all you need to do is total ...
by Earl Lemongrab
Mon Dec 03, 2018 4:59 pm
Forum: Investing - Help with Personal Investments
Topic: Forgot to convert to backdoor roth
Replies: 11
Views: 1086

Re: Forgot to convert to backdoor roth

Thanks for this info, but I'm afraid I got myself into trouble now. Because once I converted all the amount to Roth and invested in the funds, new interest of $7 got added to the tIRA at the end of the month. What are my options now? Are you directing the custodian to convert the entire account? If...
by Earl Lemongrab
Mon Dec 03, 2018 4:26 pm
Forum: Investing - Help with Personal Investments
Topic: Backdoor Roth IRA
Replies: 5
Views: 403

Re: Backdoor Roth IRA

The tax laws can lead to odd results sometimes. You could make your 2018 contribution after the 2019 if you wanted, as you have until tax day of the following year to make an IRA contribution. Many people do wait until the following year if there is question about whether their income will preclude ...
by Earl Lemongrab
Mon Dec 03, 2018 2:23 pm
Forum: Personal Finance (Not Investing)
Topic: Tax Loss Harvesting with Vanguard Short Term Investment Grade Bond Fund Admiral
Replies: 5
Views: 428

Re: Tax Loss Harvesting with Vanguard Short Term Investment Grade Bond Fund Admiral

The bottom line is that no one knows for sure what might constitute a wash sale. That being said, most here would be satisfied with your choice. A different index, and a different constitution of the of fund would seem pretty safe.
by Earl Lemongrab
Mon Dec 03, 2018 2:20 pm
Forum: Investing - Help with Personal Investments
Topic: Dollar Cost Averaging or Lump Sum in Current Market
Replies: 30
Views: 2369

Re: Dollar Cost Averaging or Lump Sum in Current Market

Yes, ideally the term DCA would only refer to voluntarily withholding funds available for investing. But it is used to describe situations where it's not voluntary. I have read it in print. Can't recall where exactly, but the author was stating that investing over a lifetime is not so risky because...
by Earl Lemongrab
Mon Dec 03, 2018 2:17 pm
Forum: Investing - Theory, News & General
Topic: The Final, Definitive Thread on Brokerage Transfer Bonuses
Replies: 1349
Views: 227383

Re: The Final, Definitive Thread on Brokerage Transfer Bonuses

After hanging out here for 11 years, I don't think there's ever a final, definitive thread on anything. :mrgreen: I think we've done a pretty good job with this one. I like having the information gathered in one place and a handy link to post when the situation arises. Also people have done a good ...
by Earl Lemongrab
Mon Dec 03, 2018 1:19 pm
Forum: Investing - Help with Personal Investments
Topic: Dollar Cost Averaging or Lump Sum in Current Market
Replies: 30
Views: 2369

Re: Dollar Cost Averaging or Lump Sum in Current Market

smarcus3 wrote:
Mon Dec 03, 2018 10:10 am
DCA is forced upon everyone as we don't get paid annually by our employer on January 1st but slowly throughout the year. You have no choice in your 401(k) to do so.
That's not DCA. It's a series of lump sum investments as it's not part larger sum held back in cash.
by Earl Lemongrab
Mon Dec 03, 2018 12:20 pm
Forum: Investing - Help with Personal Investments
Topic: Dollar Cost Averaging or Lump Sum in Current Market
Replies: 30
Views: 2369

Re: Dollar Cost Averaging or Lump Sum in Current Market

WhiteMaxima wrote:
Mon Dec 03, 2018 11:40 am
Always Dollar cost average in and out.
Never DCA in or out.
by Earl Lemongrab
Sun Dec 02, 2018 4:06 pm
Forum: Investing - Help with Personal Investments
Topic: minimizing backdoor Roth paperwork
Replies: 5
Views: 420

Re: minimizing backdoor Roth paperwork

But it seems very unclear that having transactions on two different statements would be proof of not violating the step doctrine. Forget about that. It never was a thing, and in the new tax bill Congress acknowledged that. If it had been a thing, waiting a month or so probably wouldn't make a diffe...
by Earl Lemongrab
Sat Dec 01, 2018 8:07 pm
Forum: Investing - Help with Personal Investments
Topic: Rolling over 401k to Roth IRA after resigning from a job.
Replies: 13
Views: 796

Re: Rolling over 401k to Roth IRA after resigning from a job.

If you're under 59-1/2, then you want to pay any taxes from outside sources. If you withhold from the rollover, then there would be penalty on the amount taken out for taxes.
by Earl Lemongrab
Sat Dec 01, 2018 8:05 pm
Forum: Investing - Theory, News & General
Topic: Tax efficient fund placement and tax loss harvesting
Replies: 7
Views: 659

Re: Tax efficient fund placement and tax loss harvesting

Wataru wrote:
Sat Dec 01, 2018 6:57 pm
So looking at distributions it does seem that fndf has fewer dividend distributions than vea. It only has 1 distribution per year vs. quarterly for vea. Also the annual amount looks slightly lower.
The number of distributions is only relevant if you hold the funds for a short period.
by Earl Lemongrab
Sat Dec 01, 2018 6:28 pm
Forum: Investing - Help with Personal Investments
Topic: Rolling over 401k to Roth IRA after resigning from a job.
Replies: 13
Views: 796

Re: Rolling over 401k to Roth IRA after resigning from a job.

A few things. "In-service" means "while you work there". You're describing a regular rollover from an old 401(k). I assume that you have verified that the 401(k) will transfer directly to a Fidelity IRA. Unless the plan requires it, there's no need to use a TIRA at all as you plan to convert all of ...
by Earl Lemongrab
Sat Dec 01, 2018 5:36 pm
Forum: Investing - Theory, News & General
Topic: Tax efficient fund placement and tax loss harvesting
Replies: 7
Views: 659

Re: Tax efficient fund placement and tax loss harvesting

The general advice is to ignore Morningstar's tax cost. They don't estimate qualified dividends well (or at all I don't recall) and they assume a really high tax bracket. You should look at prior year distributions to get a guesstimate. The funds you mention should be close in costs to the ones you'...
by Earl Lemongrab
Sat Dec 01, 2018 5:28 pm
Forum: Investing - Theory, News & General
Topic: Why did the bond market lose money this year
Replies: 39
Views: 3535

Re: Why did the bond market lose money this year

Not to be smug or anything, but when I put together my portfolio in 2007 (starting from a position of significant ignorance) I read several books and online sources on investing. All explained what bonds are, what bond funds are, and how the two behave with rising or falling interest rates.
by Earl Lemongrab
Sat Dec 01, 2018 4:34 pm
Forum: Personal Finance (Not Investing)
Topic: Ally CC Offer
Replies: 35
Views: 3402

Re: Ally CC Offer

My most recent CC was US Bank VISA Cash+, $150 for $500 spend: https://www.usbank.com/credit-cards.html When you redeem at least $100 of rewards, you get an $25 prepaid card sent to you. They have quarterly 2% and 5% categories, with a number of choices, but they weren't that great. As far as I can ...