Search found 517 matches

by magicrat
Fri Dec 14, 2018 10:27 am
Forum: Investing - Help with Personal Investments
Topic: Imminent retirees & sequence fear
Replies: 45
Views: 1568

Re: Imminent retirees & sequence fear

Ok, this is the Bogleheads forum, so I'll bite. I don't think you can time the market. Mr. Bogle is a man experienced in these matters, and he has not encountered anyone who can. Maybe it's different for you. You did get out at an opportune time. Skill with indicators? Or luck? (Yes, I think luck.)...
by magicrat
Thu Dec 13, 2018 2:52 pm
Forum: Investing - Help with Personal Investments
Topic: Investment advice for stocks?
Replies: 11
Views: 882

Re: Investment advice for stocks?

Personally I would keep it simple and put it all in the S&P500 fund, at least for awhile.

You say that you are thinking about pre-tax to offset higher future tax rates?? If you think your tax rate at withdrawal will be higher than now, you should invest in the Roth.
by magicrat
Thu Dec 13, 2018 1:36 pm
Forum: Investing - Help with Personal Investments
Topic: 401K, Roth 401K, and Mega Backdoor
Replies: 4
Views: 369

Re: 401K, Roth 401K, and Mega Backdoor

Hello, My wife and I currently have regular company 401K's and individual Vanguard Roth IRA's. We used backdoor Roth strategy for many years due to high salaries. We have no other money in any other IRA's, just empty tIRA's for the backdoor Roth. I have never used Roth 401K's for us since we were i...
by magicrat
Thu Dec 13, 2018 12:52 pm
Forum: Investing - Help with Personal Investments
Topic: Total Stock Market Fund that pays ~3% Dividend
Replies: 12
Views: 2341

Re: Total Stock Market Fund that pays ~3% Dividend

I don't think you're going to find exactly what you're looking for. Total US stock market funds pay out at about the dividend rate you mentioned, but they all own the same companies so I don't see how you're going to find one paying 3%.
by magicrat
Thu Dec 13, 2018 10:09 am
Forum: Investing - Help with Personal Investments
Topic: 2019 Roth IRA Contributions
Replies: 15
Views: 880

Re: 2019 Roth IRA Contributions

I am. Upside: Expected returns from stocks are positive, invest early to capture. Downside: None
by magicrat
Wed Dec 12, 2018 12:43 pm
Forum: Investing - Theory, News & General
Topic: So Much Red [in cost basis of taxable accounts]
Replies: 26
Views: 2485

Re: So Much Red

I'm a relatively new investor at 25yo, working full time and being in the market for ~2 years now, armed with the basic principles found on this website. It is my understanding that it benefits me when the market drops, because my time horizon is ~35-40 years and I want to buy stocks now as cheap a...
by magicrat
Wed Dec 12, 2018 11:57 am
Forum: Investing - Theory, News & General
Topic: So Much Red [in cost basis of taxable accounts]
Replies: 26
Views: 2485

Re: So Much Red

I look at the cumulative returns chart. Even with the recent declines the gains in my taxable account are >25% of the total balance, so I've made plenty of dough by staying the course and will continue to do so.
by magicrat
Wed Dec 12, 2018 11:54 am
Forum: Investing - Help with Personal Investments
Topic: Tax Loss Harvesting - When to do it?
Replies: 15
Views: 917

Re: Tax Loss Harvesting - When to do it?

When I TLH mutual funds I monitor the relevant ETF to assess the impact of the day's movements on my cost basis. If I decide to TLH that day I'll make the transaction a few minutes before close.
by magicrat
Tue Dec 11, 2018 3:38 pm
Forum: Investing - Help with Personal Investments
Topic: Account simplification strategies w.r.t. asset allocation?
Replies: 7
Views: 247

Re: Account simplification strategies w.r.t. asset allocation?

I seek to minimize the number of holdings I have. Here's what my wife and I do:

Taxable: US stock, Intl stock
Her 401k: Bonds, US Stock
His 401k: Bonds, Intl Stock
Her Roth: US Stock
His Roth: International Stock
HSA: International Stock
by magicrat
Tue Dec 11, 2018 3:07 pm
Forum: Investing - Help with Personal Investments
Topic: Tax harvesting VXUS (first time)
Replies: 5
Views: 323

Re: Tax harvesting VXUS (first time)

I feel like buying now it risky... is it not smart to park the money in money market? I have to sell the EFT then buy correct? I cant exchange it like a mutual fund.. VEU (FTSE All-World ex-US ETF) seems like the best EFT to move to as its extremely similar. Would that allow me to tax harvest? Risk...
by magicrat
Tue Dec 11, 2018 2:16 pm
Forum: Investing - Help with Personal Investments
Topic: Tax harvesting VXUS (first time)
Replies: 5
Views: 323

Re: Tax harvesting VXUS (first time)

Need some advice on what to do after I sell VXUS (Total International Market EFT) to harvest losses in my taxable account. First off I started with this thread: TLH for absolute dummies: https://www.bogleheads.org/forum/viewtopic.php?t=172568 I only have VXUS in my taxable account and its valued ia...
by magicrat
Tue Dec 11, 2018 2:05 pm
Forum: Investing - Help with Personal Investments
Topic: Tax harvesting VXUS (first time)
Replies: 5
Views: 323

Re: Tax harvesting VXUS (first time)

Need some advice on what to do after I sell VXUS (Total International Market EFT) to harvest losses in my taxable account. First off I started with this thread: TLH for absolute dummies: https://www.bogleheads.org/forum/viewtopic.php?t=172568 I only have VXUS in my taxable account and its valued ia...
by magicrat
Tue Dec 11, 2018 1:41 pm
Forum: Investing - Help with Personal Investments
Topic: Foreign Tax & Capital Gains on International in Tax-Advantaged
Replies: 7
Views: 251

Re: Foreign Tax & Capital Gains on International in Tax-Advantaged

1. That sounds right. Though you also have to calculate the impact of non-qualified dividends (which are higher on Total International than Total US Stock) if holding international in a taxable account. 2. You will not pay capital gains tax in a Roth. Thanks - appreciate the response. 1. I understo...
by magicrat
Tue Dec 11, 2018 1:34 pm
Forum: Investing - Help with Personal Investments
Topic: Another comingling and mega backdoor Roth question
Replies: 3
Views: 268

Re: Another comingling and mega backdoor Roth question

Hello Experts, I know you have been asked about mega backdoor Roth’s mulitiple Times - and I have read through the responses - however am still confused regarding commingling. I have about 25k in a rollover IRA ( rolled over from a previous employer 401K - so this is all pre tax. I also added anoth...
by magicrat
Tue Dec 11, 2018 1:28 pm
Forum: Investing - Help with Personal Investments
Topic: Foreign Tax & Capital Gains on International in Tax-Advantaged
Replies: 7
Views: 251

Re: Foreign Tax & Capital Gains on International in Tax-Advantaged

1. That sounds right. Though you also have to calculate the impact of non-qualified dividends (which are higher on Total International than Total US Stock) if holding international in a taxable account.

2. You will not pay capital gains tax in a Roth.
by magicrat
Tue Dec 11, 2018 1:22 pm
Forum: Investing - Theory, News & General
Topic: Market Volatility Circuit Breakers
Replies: 2
Views: 201

Re: Market Volatility Circuit Breakers

Has there ever been a rule stating that any stock purchase must be held for a period ( days/weeks ) ? I was reading a market article this morning that said something to the effect of "traders are wagering...." It seems the game is set up for the gamblers, not the long-term investors saving for reti...
by magicrat
Tue Dec 11, 2018 12:13 pm
Forum: Investing - Help with Personal Investments
Topic: Asset allocation between Roth and 401(k)
Replies: 5
Views: 339

Re: Asset allocation between Roth and 401(k)

Should you take into account the relative tax treatment of funds in a Roth account versus a 401(k) account when choosing which asset classes to put into those accounts? Since withdrawals from the Roth account will not be taxed, presumably you want the funds / securities that will have the highest b...
by magicrat
Tue Dec 11, 2018 8:35 am
Forum: Investing - Help with Personal Investments
Topic: Made an unwise investment, help solicited
Replies: 41
Views: 3496

Re: Made an unwise investment, help solicited

Note that short-term capital gains distributions are not offset by capital losses. Some of us found that out with VSS a few years ago. But if you have short-term losses they should offset short term gains, yes? It is my understanding that it's long term losses that cannot be used to offset short......
by magicrat
Mon Dec 10, 2018 3:20 pm
Forum: Investing - Help with Personal Investments
Topic: Diversifying my investment
Replies: 2
Views: 402

Re: Diversifying my investment

I recently had Vanguard perform a retirement goal analysis, but my current average annual return is slightly more than recommend investments. 8.34 vs 8.29(Average annual return) Should I make these changes and why are they recommending 0% for my tax exempt muni fund. It was tax free money from sale...
by magicrat
Mon Dec 10, 2018 12:06 pm
Forum: Investing - Help with Personal Investments
Topic: Best strategy to make a Bond re-allocation
Replies: 2
Views: 296

Re: Best strategy to make a Bond re-allocation

If you want to be at 80/20, and you are not at 80/20, make the changes now (assuming no tax consequences).
by magicrat
Mon Dec 10, 2018 11:28 am
Forum: Investing - Help with Personal Investments
Topic: Made an unwise investment, help solicited
Replies: 41
Views: 3496

Re: Made an unwise investment, help solicited

Sell it today and immediately buy a total stock market fund.
by magicrat
Thu Dec 06, 2018 4:41 pm
Forum: Investing - Theory, News & General
Topic: Why are market corrections "healthy"?
Replies: 27
Views: 2009

Re: Why are market corrections "healthy"?

Over the past couple of weeks, listening to TV finance broadcasts while on the treadmill at the gym, several analysts have said that the market is "due for a correction" and that a market correction is "healthy". I'd appreciate if someone would explain why market corrections are "healthy". Thank yo...
by magicrat
Thu Dec 06, 2018 10:31 am
Forum: Investing - Help with Personal Investments
Topic: Vanguard advisor suggesting 90/10
Replies: 41
Views: 3078

Re: Vanguard advisor suggesting 90/10

You've outlined two options: 1) a 90% stock / 10% bond portfolio or 2) a 45% stock / 5% bond / 50% cash portfolio. These are wildly different and suggest that you have more work to do to understand your need, ability, and willingness to take risk. Also, choosing the right asset allocation has zero t...
by magicrat
Thu Dec 06, 2018 10:28 am
Forum: Personal Consumer Issues
Topic: Streaming over-the-air TV on a laptop
Replies: 17
Views: 1260

Re: Streaming over-the-air TV on a laptop

Locast.org (depending on your market). Haven't tried it though.
by magicrat
Wed Dec 05, 2018 12:41 pm
Forum: Investing - Help with Personal Investments
Topic: 401k Overcontribution
Replies: 19
Views: 1526

Re: 401k Overcontribution

Yes, the IRS will figure this out and you will owe back taxes and penalties.
by magicrat
Sun Dec 02, 2018 11:01 pm
Forum: Investing - Help with Personal Investments
Topic: Which direction to go?
Replies: 8
Views: 890

Re: Which direction to go?

Hard to say without more info. What are your considerations for each choice?
by magicrat
Sun Dec 02, 2018 10:36 am
Forum: Investing - Help with Personal Investments
Topic: How to stage long overdue rebalance
Replies: 9
Views: 823

Re: How to stage long overdue rebalance

One small thing you can do is turn off dividend reinvestment in the taxable account and reinvest your stock dividends in a bond fund.
by magicrat
Fri Nov 30, 2018 10:10 am
Forum: Investing - Help with Personal Investments
Topic: My 401k isn't making any money
Replies: 35
Views: 4272

Re: My 401k isn't making any money

Would you rather your return be down or get more shares for your future contributions? The latter is more important for someone with 23 years to go. Share accumulation is what is important at your age. You actually want the fund to stay the same or drop so your purchases are more effective. That's ...
by magicrat
Thu Nov 29, 2018 10:29 am
Forum: Investing - Help with Personal Investments
Topic: backdoor roth and new limitation?
Replies: 15
Views: 1222

Re: backdoor roth and new limitation?

The FA is 100% wrong (shocking). What you do with your 401k has no impact on backdoor Roths.
by magicrat
Wed Nov 28, 2018 12:45 pm
Forum: Personal Consumer Issues
Topic: Travel with small child(ren)
Replies: 8
Views: 1021

Re: Travel with small child(ren)

What are the things he sees as positives?
by magicrat
Wed Nov 28, 2018 10:33 am
Forum: Investing - Theory, News & General
Topic: Withdrawals
Replies: 11
Views: 1022

Re: Withdrawals

The assets (stocks) that you don't sell have never failed to recover - given enough time. The assets (stocks) you sold cannot recover. 2b2 What 2b2 said is what I was trying to convey. If all your assets (VTI, VXUS, BND) are all down and you sell as part of your withdrawal you can never recover as ...
by magicrat
Tue Nov 27, 2018 3:42 pm
Forum: Personal Finance (Not Investing)
Topic: 23 years old 40K saved. What would you do?
Replies: 39
Views: 3352

Re: 23 years old 40K saved. What would you do?

Move out. I cannot imagine living with parents at age 23 unless there was some dire situation. These are amazing years of your life. Get a cheapo place with lots of roommates, eat ramen, drive a beater, and have the time of your life.
by magicrat
Tue Nov 27, 2018 8:07 am
Forum: Personal Finance (Not Investing)
Topic: Backdoor Roth Question
Replies: 5
Views: 529

Re: Backdoor Roth Question

Yes, but it will be a conversion, not a rollover.
by magicrat
Tue Nov 27, 2018 8:05 am
Forum: Personal Finance (Not Investing)
Topic: BackDoor Roth and Pro Rata Rule
Replies: 4
Views: 443

Re: BackDoor Roth and Pro Rata Rule

If you roll into your 403, you need to first rollover the pre-tax amount only, then roll over the after-tax amount into your Roth. Even if you cannot do this, consider converting the entire $12k to a Roth now. You'll owe taxes on $6k but that is likely worth it if you have many years of backdoor Rot...
by magicrat
Mon Nov 26, 2018 4:47 pm
Forum: Investing - Help with Personal Investments
Topic: Forgot to convert to backdoor roth
Replies: 11
Views: 1098

Re: Forgot to convert to backdoor roth

A. No reason to have a ~$5 withholding.
by magicrat
Sun Nov 25, 2018 4:46 pm
Forum: Investing - Help with Personal Investments
Topic: Average cost for behaviorally challenged
Replies: 10
Views: 1468

Re: Average cost for behaviorally challenged

my average cost would increase and so decrease the capital gains that I incur when I eventually start selling. Are you suggesting that by using average cost you will end up with less in capital gains than if you used specific ID? If so, that is incorrect. If there were two accounts buying the same ...
by magicrat
Sun Nov 25, 2018 12:53 pm
Forum: Personal Consumer Issues
Topic: Galapagos Islands-Land based day tours worth it?
Replies: 9
Views: 742

Re: Galapagos Islands-Land based day tours worth it?

fortfun wrote:
Sun Nov 25, 2018 12:47 pm
Has anyone done land based day tours? If so, how was your experience? People who have done both, is the cruise based tour essential?
A cruise is essential. You can only get to a couple of islands otherwise.
by magicrat
Sun Nov 25, 2018 9:54 am
Forum: Investing - Help with Personal Investments
Topic: When to change
Replies: 2
Views: 513

Re: When to change

Mr.D315 wrote:
Sun Nov 25, 2018 9:47 am
If exchanging funds within Roth IRA, ie from corporate bonds to total bonds should you wait till beginning of 2019 or not matter.
Doesn't matter There are no tax implications.
by magicrat
Sun Nov 25, 2018 9:51 am
Forum: Investing - Help with Personal Investments
Topic: Average cost for behaviorally challenged
Replies: 10
Views: 1468

Re: Average cost for behaviorally challenged

wayfarer wrote:
Sun Nov 25, 2018 7:52 am
my average cost would increase and so decrease the capital gains that I incur when I eventually start selling.
Are you suggesting that by using average cost you will end up with less in capital gains than if you used specific ID? If so, that is incorrect.
by magicrat
Wed Nov 21, 2018 10:30 am
Forum: Personal Finance (Not Investing)
Topic: Sell RSUs at 18 month low or wait
Replies: 37
Views: 2519

Re: Sell RSUs at 18 month low or wait

If you didn't have RSUs, would you buy stock in your company today with the plan to sell it in three months? If yes, hold. If no, sell. This is the dilemma. I don't do short term buy/sell moves and only invest in total stock market and a small amount in sector ETFs (technology). Selling the individ...
by magicrat
Wed Nov 21, 2018 9:33 am
Forum: Investing - Theory, News & General
Topic: Opinion Required
Replies: 41
Views: 2411

Re: Opinion Required

I wasn't going to reply, but since my opinion is required, here it is: This is a terrible idea.
by magicrat
Wed Nov 21, 2018 9:20 am
Forum: Personal Finance (Not Investing)
Topic: Sell RSUs at 18 month low or wait
Replies: 37
Views: 2519

Re: Sell RSUs at 18 month low or wait

If you didn't have RSUs, would you buy stock in your company today with the plan to sell it in three months? If yes, hold. If no, sell. This is the dilemma. I don't do short term buy/sell moves and only invest in total stock market and a small amount in sector ETFs (technology). Selling the individ...
by magicrat
Wed Nov 21, 2018 9:08 am
Forum: Personal Finance (Not Investing)
Topic: Sell RSUs at 18 month low or wait
Replies: 37
Views: 2519

Re: Sell RSUs at 18 month low or wait

If you didn't have RSUs, would you buy stock in your company today with the plan to sell it in three months? If yes, hold. If no, sell.
by magicrat
Tue Nov 20, 2018 4:29 pm
Forum: Investing - Theory, News & General
Topic: Inflation
Replies: 27
Views: 2696

Re: Inflation

Anyone who regularly purchases groceries can attest to the frequent practice of many manufacturers to reduce package sizes while maintaining current pricing levels. One only needs to look at Frito Lay chips, Nabisco crackers or Kellogg's cereals to see examples of this common marketing practice. Qu...
by magicrat
Tue Nov 20, 2018 4:19 pm
Forum: Investing - Theory, News & General
Topic: If Markets Move on the Unexpected, What Gives Now?
Replies: 6
Views: 740

Re: If Markets Move on the Unexpected, What Gives Now?

There's not one thing and the market is not a monolith. Campbell Soup delivered good earnings today, stock up. Apple sold fewer iPhones than expected, stock down. There are thousands and thousands of things like that.
by magicrat
Tue Nov 20, 2018 3:38 pm
Forum: Investing - Help with Personal Investments
Topic: help with Asset Allocation
Replies: 4
Views: 477

Re: help with Asset Allocation

arnik83 wrote:
Tue Nov 20, 2018 3:17 pm
Thanks. This has been very helpful.

What is advised to be held in roth ira and taxable brokerage accounts. Do i just apply the same 3 fund portfolio idea in both type of accounts
100% stocks in Roths. Put all bonds in pre-tax.
by magicrat
Tue Nov 20, 2018 3:10 pm
Forum: Investing - Theory, News & General
Topic: Inflation
Replies: 27
Views: 2696

Re: Inflation

Input costs are certainly going up
by magicrat
Tue Nov 20, 2018 12:40 pm
Forum: Investing - Help with Personal Investments
Topic: Repeat TLH using the same pair the next day
Replies: 5
Views: 425

Re: Repeat TLH using the same pair the next day

My understanding is that as long as you don't repurchase what you have sold, then you are okay. If you sell more, use the latest sell date to determine the earliest you can buy back in. Be mindful of short term gains if you are considering selling what you have bought. Thank you for your replies I ...
by magicrat
Tue Nov 20, 2018 10:36 am
Forum: Investing - Help with Personal Investments
Topic: I was 30% into US stocks.. Down 5.5% YTD. Should I now get back in ?
Replies: 14
Views: 1948

Re: I was 30% into US stocks.. Down 5.5% YTD. Should I now get back in ?

toomuchRE wrote:
Tue Nov 20, 2018 10:13 am
I mean with my 50% money which is in cash-bonds-treasury-stablefund....
yeah make it more aggressive now..
Why would you change the asset allocation that you've had for a long time (and seems to have worked well for you?)? Did something change in your life / situation?