Search found 1857 matches

by dmcmahon
Wed Mar 20, 2019 1:47 am
Forum: Investing - Theory, News & General
Topic: retirement / taxable accounts as two separate buckets
Replies: 11
Views: 822

Re: retirement / taxable accounts as two separate buckets

Others can speak more to it but it can often make sense to have a withdrawal strategy that uses both at the same time, and also incorporates things like Roth conversions. Man, have I got questions about Roth conversions! Best for another post though, probably. :happy Re. the Roth conversions, I've ...
by dmcmahon
Wed Mar 20, 2019 1:40 am
Forum: Investing - Theory, News & General
Topic: retirement / taxable accounts as two separate buckets
Replies: 11
Views: 822

Re: retirement / taxable accounts as two separate buckets

I have had the same thoughts as the OP but for different reasons. It has to do with the relative sizes of the two pots. Whatever their sizes are today, if tax-deferred is all in bonds, and all equities are held in taxable, then on average the tax-deferred pot is going to shrink relative to taxable. ...
by dmcmahon
Wed Mar 20, 2019 12:59 am
Forum: Investing - Theory, News & General
Topic: That's enough for me in 2019
Replies: 277
Views: 21010

Re: That's enough for me in 2019

I really like the profile of rentals in early retirement followed by annuities in late retirement, as what I'm ultimately after is an income stream. As others have pointed out, managing those rentals has a way of turning into a job. And REITs expose you to leverage you may not want. The problem wit...
by dmcmahon
Sat Feb 23, 2019 11:59 am
Forum: Personal Finance (Not Investing)
Topic: "Business Location" for a Trust?
Replies: 4
Views: 392

Re: "Business Location" for a Trust?

The trust was set up for tax purposes, at a time when the estate tax exemptions were much lower than today. It was a classic A/B trust structure, mom has a nearly-identical trust for herself. Dad's trust became irrevocable on his death. According to mom's attorney, the "situs" for the trust is likel...
by dmcmahon
Sat Feb 23, 2019 11:48 am
Forum: Personal Investments
Topic: Is anything "cheap" right now?
Replies: 49
Views: 4634

Re: Is anything "cheap" right now?

fujiters wrote:
Sat Feb 23, 2019 10:46 am
Total international. You can still buy at 2006 prices!
I second this. Unfortunately, I thought that in 2018. And 2017. And 2016.

OP: if you have space in a tax-deferred account, have you looked at intermediate-term TIPS bonds?
by dmcmahon
Mon Jan 28, 2019 3:39 pm
Forum: Personal Finance (Not Investing)
Topic: "Business Location" for a Trust?
Replies: 4
Views: 392

Re: "Business Location" for a Trust?

Thanks for the response. Sound like I need to get an attorney to sort it out. The income is indeed required to be 100% distributed. You're right about the capital gains being a potential issue - there aren't any, though, because Mom's investment strategy is 100% fixed income. However, looking ahead,...
by dmcmahon
Sun Jan 27, 2019 6:27 pm
Forum: Personal Finance (Not Investing)
Topic: "Business Location" for a Trust?
Replies: 4
Views: 392

"Business Location" for a Trust?

I'm trying to figure out if my late father's trust has an actual "business location" within the meaning of an IRS form, and if so, what that might be. My parents lived in state X years ago, at the time of the drafting of revocable trusts for both of them. Dad passed away in state X. At this time his...
by dmcmahon
Thu Jan 17, 2019 8:39 pm
Forum: Investing - Theory, News & General
Topic: John Bogle has died at age 89
Replies: 856
Views: 49850

Re: John Bogle has died at age 89

Thank you for all you've done for us small investors. You've earned your reward, rest in peace.
by dmcmahon
Fri Aug 31, 2018 9:25 pm
Forum: Personal Investments
Topic: Rolling over 401k that has after-tax contributions
Replies: 4
Views: 496

Re: Rolling over 401k that has after-tax contributions

I found at least a partial answer from the IRS: https://www.irs.gov/retirement-plans/rollovers-of-after-tax-contributions-in-retirement-plans This implies that when you take money from the 401k to the IRAs, you have to take a pro-rate share from pre-tax and after-tax monies, but you can route the fu...
by dmcmahon
Fri Aug 31, 2018 6:48 pm
Forum: Personal Investments
Topic: Rolling over 401k that has after-tax contributions
Replies: 4
Views: 496

Rolling over 401k that has after-tax contributions

I'm trying to navigate the tricky waters around 401k rollovers and I am soliciting any thoughts from this forum. I have a 401k that contains co-mingled pre-tax and after-tax contributions. I also have a Roth IRA and a Traditional IRA. The Traditional IRA is largely funded with non-deductible contrib...
by dmcmahon
Mon Apr 23, 2018 5:31 pm
Forum: Personal Finance (Not Investing)
Topic: 1098T [IRS Form 1098-T, Tuition Statement]
Replies: 10
Views: 778

Re: 1098T

Quoting directly from the instructions for filing the form (which I gather are instructions to the educational institution, not the taxpayer receiving the form): Box 1. Payments Received for Qualified Tuition and Related Expenses Enter the total amount of payments received for qualified tuition and ...
by dmcmahon
Mon Apr 23, 2018 5:17 pm
Forum: Personal Finance (Not Investing)
Topic: 1098T [IRS Form 1098-T, Tuition Statement]
Replies: 10
Views: 778

Re: 1098T

Thanks for your reply. Let me try to clarify. I will call the two educational institutions A and B. A sent a 1098T with her tuition, which was paid in 2017, clearly listed in box 2. Box 2 clearly reflects an amount paid to A by my sister. B sent a 1098T with an amount in box 1, then described it in ...
by dmcmahon
Mon Apr 23, 2018 4:55 pm
Forum: Personal Finance (Not Investing)
Topic: 1098T [IRS Form 1098-T, Tuition Statement]
Replies: 10
Views: 778

1098T [IRS Form 1098-T, Tuition Statement]

I do my sister's taxes and this year I had to deal with a form I'd never seen before. I'm hoping someone on this forum can help me. She's had to file for an extension while we try to sort this out. The form is a 1098T, which has something to do with educational expenditures. My sister is a retired t...
by dmcmahon
Thu Jan 04, 2018 1:18 am
Forum: Personal Finance (Not Investing)
Topic: Impact of Tax Reform on California Tax Return
Replies: 9
Views: 1861

Re: Impact of Tax Reform on California Tax Return

If you overpay your state income tax, will you still have to pay federal income tax on the refund, even though you didn’t or couldn’t deduct it in the prior year? Asking about (hypotheticaly) overpaying in 2018 and then getting a refund and 1099 in 2019. It was already the law that only the portion...
by dmcmahon
Thu Jan 04, 2018 12:26 am
Forum: Personal Finance (Not Investing)
Topic: Impact of Tax Reform on California Tax Return
Replies: 9
Views: 1861

Re: Impact of Tax Reform on California Tax Return

Here’s another question. If you overpay your state income tax, will you still have to pay federal income tax on the refund, even though you didn’t or couldn’t deduct it in the prior year? Asking about (hypotheticaly) overpaying in 2018 and then getting a refund and 1099 in 2019.
by dmcmahon
Sat Dec 23, 2017 5:45 pm
Forum: Personal Finance (Not Investing)
Topic: Donor Advised Fund (DAF) - Bunch Now - Easy (even easier than backdoor Roth)
Replies: 19
Views: 1834

Re: Donor Advised Fund (DAF) - Bunch Now - Easy (even easier than backdoor Roth)

What I read at Schwab's site said that a DAF has the 50% limit, in contrast to a private foundation or CRUT where you'd face the 30% limit. Is that wrong? Edit: I see, it's "up to 50%" for cash, but only 30% for appreciated securities. You folks seem to be saying 2017 is a better year to fund a DAF ...
by dmcmahon
Sat Dec 23, 2017 1:45 pm
Forum: Personal Finance (Not Investing)
Topic: S-CORP: How do taxes work?
Replies: 33
Views: 3195

Re: S-CORP: How do taxes work?

What if you're just starting your business and for a few years you aren't making any money? How can you make that work vis-a-vis the requirement to pay yourself a reasonable salary? Are you allowed to work for nothing for a while? Even with C corps there are cases where for symbolic reasons the CEO ...
by dmcmahon
Fri Dec 22, 2017 12:10 am
Forum: Investing - Theory, News & General
Topic: Charles Schwab Experiences?
Replies: 101
Views: 16547

Re: Charles Schwab Experiences?

I’m pleased with Schwab and never hesitate to give the firm a thumb’s up. Having a physical office in town is a definite plus and one that I’ve used many times. Financial soundness of the firm is important to me and Schwab passes my sniff test. Having said that, my mom does business via WF advisors ...
by dmcmahon
Thu Dec 21, 2017 11:31 pm
Forum: Personal Finance (Not Investing)
Topic: Christmas Bonus: Etiquette
Replies: 47
Views: 7685

Re: Christmas Bonus: Etiquette

VictoriaF wrote:
Thu Dec 21, 2017 4:52 pm
If you don't have a lot of face time with your boss and colleagues, the bonus provides you with a great reason to see them in person. Visit your company and personally thank your boss.

Victoria
This.
by dmcmahon
Thu Dec 21, 2017 9:24 pm
Forum: Investing - Theory, News & General
Topic: Vanguard's new security key option
Replies: 120
Views: 34513

Re: Vanguard's new security key option

Thanks to the folks who posted this information about Vanguard's new security key, I went ahead and ordered the Yubico USB Security Key (FIDO U2F) and now have it working with my Vanguard accounts. Thanks again for the tip!!! Brian Update: I also bought one, and it works fine, even on Linux. It's a...
by dmcmahon
Thu Dec 21, 2017 8:56 pm
Forum: Personal Finance (Not Investing)
Topic: Please Post Tax Bill Questions Here [was Tax Bill Omnibus Thread]
Replies: 886
Views: 66412

Re: Tax Bill Omnibus Thread

http://thehill.com/homenews/administration/366088-white-house-trump-will-likely-sign-tax-bill-friday The reason for the President to delay signing the bill until January appears to have evaporated. Looks like they exempted the bill from PAYGO rules as part of the deal to avoid a shutdown. Therefore...
by dmcmahon
Thu Oct 05, 2017 11:17 pm
Forum: Investing - Theory, News & General
Topic: Are stocks going up only because all the alternatives are lousy?
Replies: 45
Views: 6404

Re: Are stocks going up only because all the alternatives are lousy?

Standard Boglehead disclaimer, I realize I know nothing, so I keep investing according to my plan. However, if I was inclined to listen to my own suspicions, I would say we have expanded the money supply greatly, but the inflation monster is nowhere to be found. Perhaps increased wealth inequality ...
by dmcmahon
Thu Oct 05, 2017 11:13 pm
Forum: Investing - Theory, News & General
Topic: Does anyone hold cash?
Replies: 58
Views: 7950

Re: Does anyone hold cash?

10% cash - I'd feel naked without it.
by dmcmahon
Mon Sep 11, 2017 11:36 pm
Forum: Personal Finance (Not Investing)
Topic: Equifax fiasco - how can we protect ourselves from potential fraudulent tax returns filed on our behalf?
Replies: 31
Views: 4499

Re: Equifax fiasco - how can we protect ourselves from potential fraudulent tax returns filed on our behalf?

Given the Equifax fiasco: 1) Am I LESS at risk if I file via snail mail than electronically? I usually file via snail mail anyway. 2) Is it risky to have refund deposited to checking account via ACH Deposit? Or should I have refund sent via snail mail? Thanks. The Equifax breach shouldn't affect th...
by dmcmahon
Sun Sep 10, 2017 3:08 pm
Forum: Personal Finance (Not Investing)
Topic: Equifax customer information leak
Replies: 711
Views: 67333

Re: Equifax customer information leak

Credit freeze/unfreeze scam is the new credit monitoring scam to boost bottom line for credit reporting companies. No surprise the latest massive release of PII is from a credit reporting agency - setting off a panic that will result in perhaps millions of new paying customers for freeze/unfreeze a...
by dmcmahon
Sat Sep 09, 2017 6:41 pm
Forum: Investing - Theory, News & General
Topic: Vanguard's new security key option
Replies: 120
Views: 34513

Re: Vanguard's new security key option

In looking at Yubico's web site, I'm a bit confused. Their sales blurbs state that "no drivers or software" are necessary to use the FIDO U2F key; however, also according to their site: You may experience a slight delay when registering a key for the first time, as your computer will need to instal...
by dmcmahon
Sat Sep 09, 2017 6:07 pm
Forum: Personal Finance (Not Investing)
Topic: Fidelity Security
Replies: 66
Views: 9959

Re: Fidelity Security

^^ Indeed, the human element is where these security measures usually fail. That said, thanks to the OP for alerting me to this option. I will be downloading it and hope that Fidelity is one of the companies making it harder to bypass security measures by calling in. It seems to work like an RSA to...
by dmcmahon
Fri Sep 08, 2017 11:01 am
Forum: Personal Finance (Not Investing)
Topic: Equifax customer information leak
Replies: 711
Views: 67333

Re: Equifax customer information leak

Now let's abstract that to this breach. It includes SSNs, driver's license numbers, addresses, and so on. Now instead of a money mule with a replicated ATM card, they need money mules with fake driver's licenses (has your name, number, address, but the money mule's photo) and fake SS cards. They go...
by dmcmahon
Fri Sep 08, 2017 10:50 am
Forum: Personal Finance (Not Investing)
Topic: Equifax customer information leak
Replies: 711
Views: 67333

Re: Equifax customer information leak

The real social engineering problem lately is cell phone numbers. It doesn't take much to walk into a cellular store, pretend to be you, and port your number to a new, "upgraded" phone. If you're lucky, they just want the phone itself and will instead add lines on your plan. If you're unlucky, they...
by dmcmahon
Fri Sep 08, 2017 10:06 am
Forum: Personal Finance (Not Investing)
Topic: Equifax customer information leak
Replies: 711
Views: 67333

Re: Equifax says info stolen. What's my best course of action?

My worries go beyond credit though. Freezing credit reporting is straightforward. But if they have your name, address, data of birth, SSN, and DL#, I don't see how any of your bank and brokerage accounts are secure. This is exactly the information you have to give on the phone to transact business. ...
by dmcmahon
Fri Sep 08, 2017 9:54 am
Forum: Personal Finance (Not Investing)
Topic: Equifax customer information leak
Replies: 711
Views: 67333

Re: Equifax customer information leak

I am starting a company to rate the credit raters. Equifax will not be getting a very good rating. But you have to give them high marks for waiting 9 weeks to release the news. Just in; Equifax executives sold stock after data breach, before informing public http://www.marketwatch.com/story/equifax...
by dmcmahon
Fri Sep 08, 2017 12:56 am
Forum: Personal Finance (Not Investing)
Topic: Equifax customer information leak
Replies: 711
Views: 67333

Re: Equifax customer information leak

Isn't the bigger danger that the information will allow them to access your existing accounts? Forge documents in your name and use them to clean out an account at your bank in person? File fake tax returns? It's mind-boggling. Freezing your credit reports seems a completely inadequate response. BTW...
by dmcmahon
Wed Apr 05, 2017 2:06 pm
Forum: Personal Finance (Not Investing)
Topic: High Income earners, whats your Tax Strategy?
Replies: 122
Views: 18612

Re: High Income earners, whats your Tax Strategy?

We keep it simple: - Max out pre-tax 401(k) - Max out mega backdoor Roth 401(k) - Backdoor Roth IRA - Donate appreciated stock, if there's a good opportunity - Keep taxable in ETFs instead of traditional mutual funds, where you can more effectively defer capital gains - Tax loss harvesting if/when ...
by dmcmahon
Wed Apr 05, 2017 10:25 am
Forum: Personal Finance (Not Investing)
Topic: Mistake on 2015 taxes - how to handle?
Replies: 1
Views: 304

Mistake on 2015 taxes - how to handle?

I made a mistake doing my sister's 2015 taxes, the net effect of which was to get a larger refund than she was entitled to. I'm now preparing an amended return to correct the mistake. The question is actually about her 2016 tax return. On that return I've reported the amount of the state refund as i...
by dmcmahon
Thu Feb 09, 2017 7:19 pm
Forum: Investing - Theory, News & General
Topic: Charles Schwab Experiences?
Replies: 101
Views: 16547

Re: Charles Schwab Experiences?

Update: I recently discovered that Schwab's password limitations have been fixed. You can now use passwords with special characters and that are longer than 8 characters. I still like having 2-factor, but now it's extra protection, not a work-around for limited password strength. Thanks, Schwab!
by dmcmahon
Mon Dec 19, 2016 7:02 pm
Forum: Investing - Theory, News & General
Topic: Charles Schwab Experiences?
Replies: 101
Views: 16547

Re: Charles Schwab Experiences?

My experience is positive. I find the web site easy to use, and there's a local branch office I can go to that's always staffed. When I've used the phone for help, it's always a good experience. I also view the company itself as financially sound, though I would encourage you to check that out for a...
by dmcmahon
Wed Jul 27, 2016 10:27 pm
Forum: Investing - Theory, News & General
Topic: Two-factor authentication via text messaging
Replies: 18
Views: 2873

Re: Two-factor authentication via text messaging

Seems pretty unlikely. But what is the alternative? The hackers will come up with a counter to anything that is created, just a matter of time. At the moment, 2 factor is a little better than one. At what point does the security feature inconvenience outweigh the covenience of doing things over the...
by dmcmahon
Wed Jul 20, 2016 11:28 am
Forum: Investing - Theory, News & General
Topic: Trying the Impossible - Financing 30-Year Retirements with 40-Year Careers
Replies: 118
Views: 18464

Re: Trying the Impossible - Financing 30-Year Retirements with 40-Year Careers

The islanders and coconut analogy shows only that it's not practical to accumulate claims on future production as a means to finance retirement unless the pool of workers is expanding. In the real world of the island, retirement of any of the workers can only be financed by either stockpiling necess...
by dmcmahon
Wed Jun 29, 2016 11:23 am
Forum: Investing - Theory, News & General
Topic: For those that "buy" during stock market downturns...
Replies: 158
Views: 13660

Re: For those that "buy" during stock market downturns...

I have a significant portion of my taxable bond allocation in cash. The difference between an intermediate-term bond and a savings account isn't that great right now, so I get away with this. This money stands ready to buy a large downdraft. Such a move would constitute an AA shift, but a modest one...
by dmcmahon
Thu Jun 23, 2016 10:57 pm
Forum: Investing - Theory, News & General
Topic: Actionable advice in a Brexit scenario
Replies: 162
Views: 21447

Re: Actionable advice in a Brexit scenario

According to the International Monetary Fund, in 1915 the World Gross Domestic Product totaled approximately $18 trillion dollars. The United Kingdom had a Gross Domestic Product of approximately $3 trillion dollars. I think you meant 2015, and the $18 trillion is the US GDP - world GDP is around $...
by dmcmahon
Thu Jun 23, 2016 8:56 pm
Forum: Investing - Theory, News & General
Topic: An Alternative to Being Long the S&P 500
Replies: 18
Views: 3117

Re: An Alternative to Being Long the S&P 500

How tax efficient is that 80/20 mix?
by dmcmahon
Wed Jun 08, 2016 11:32 pm
Forum: Personal Finance (Not Investing)
Topic: Where to enter CRUT donation in TurboTax?
Replies: 8
Views: 1816

Re: Where to enter CRUT donation in TurboTax?

I had a windfall, otherwise I would have just kept things simple. I received an in-kind distribution of appreciated stock shares from a partnership. Setting up the CRUT and donating the shares now while I'm still in a high tax bracket made a lot of sense. Effectively the charities will get more cash...
by dmcmahon
Wed Jun 08, 2016 4:32 pm
Forum: Investing - Theory, News & General
Topic: Yale scholars on tax treatment of stock buybacks
Replies: 28
Views: 1934

Re: Yale scholars on tax treatment of stock buybacks

As a practical matter it would seem very hard if not impossible to identify who sold stock to the company versus sold it to somebody else if this was a normal transaction using a broker. My understanding is that in general most stock buybacks do not exceed 1% of the trading in a given stock on any ...
by dmcmahon
Thu May 12, 2016 9:40 pm
Forum: Investing - Theory, News & General
Topic: NY Times article on the "tip of the iceberg" that is Puerto Rico
Replies: 76
Views: 14833

Re: NY Times article on the "tip of the iceberg" that is Puerto Rico

Thanks for raising awareness Larry. I've been following this disturbing trend for 10+ years now, and I avoid munis entirely due to this overhang. I recall Meridith Whitney getting trashed here for raising an alarm about this issue too early. Other than to move to a state that's less exposed than Cal...
by dmcmahon
Fri May 06, 2016 7:46 pm
Forum: Investing - Theory, News & General
Topic: public pension plan unfunded liabilities
Replies: 75
Views: 11147

Re: public pension plan unfunded liabilities

Plan return assumptions probably need to be adjusted to the new normal of lower returns, especially on bonds.
But at least some plans are taking a hard look at overpaying for underperformance in hedge funds and other such vehicles - at last!
by dmcmahon
Wed Apr 20, 2016 7:25 am
Forum: Personal Finance (Not Investing)
Topic: Where to enter CRUT donation in TurboTax?
Replies: 8
Views: 1816

Re: Where to enter CRUT donation in TurboTax?

I was able to trick TT into producing a mostly correct tax return, except for that one form. What I did is lie to TT about the property - I said yes to the question about transferring 100% of the interest in the property, but then entered the deductible value calculated by my attorney as if it were ...
by dmcmahon
Wed Apr 20, 2016 6:57 am
Forum: Investing - Theory, News & General
Topic: A new kind of a roth back door.
Replies: 7
Views: 1964

Re: A new kind of a roth back door.

I'm not sure it's a new idea and it's not limited to Roth accounts so it's more of a general retirement savings back door. I first heard the idea that's at the core of your proposal in the context of a company 401k plan. Basically the idea was to take a loan and then pay it back, thus adding the loa...
by dmcmahon
Mon Mar 28, 2016 9:58 pm
Forum: Investing - Theory, News & General
Topic: Michael Kitces said in 2016 that IRS auditors disapproved of backdoor Roth IRAs
Replies: 249
Views: 41512

Re: Michael Kitces says IRS auditors disapprove of Backdoor Roth IRA's

I think this discussion is focusing on the wrong part of the interview. The point isn't that there's some hearsay about some people who got audited and reversed it. Kitces provides valuable information about the grounds that the IRS would use to object to the practice, as well as how to avoid runni...
by dmcmahon
Tue Mar 15, 2016 9:50 pm
Forum: Personal Finance (Not Investing)
Topic: Throw away turbo tax disk?
Replies: 17
Views: 3921

Re: Throw away turbo tax disk?

Doesn't work. Too many updates needed which are no longer available on line. Save PDFs for all your returns, the old tt files will no longer be useful after about 5 years even if you keep the install disks. I generally agree with this, and personally keep PDFs of both my submitted return and all th...
by dmcmahon
Tue Mar 15, 2016 10:29 am
Forum: Personal Finance (Not Investing)
Topic: Throw away turbo tax disk?
Replies: 17
Views: 3921

Re: Throw away turbo tax disk?

The only reason I can think of for keeping them is if for any reason you might have to reprint an old tax return. Doesn't work. Too many updates needed which are no longer available on line. Save PDFs for all your returns, the old tt files will no longer be useful after about 5 years even if you ke...