Search found 1049 matches

by FactualFran
Fri May 22, 2020 6:10 pm
Forum: Personal Finance (Not Investing)
Topic: IRMAA Thresholds in 2020
Replies: 37
Views: 7219

Re: IRMAA Thresholds in 2020

I also thought MAGI included the non taxable portion of your Social Security. Is that not so? If it is, then I could have converted another 3000+ into my Roth, as when I did my MAGI I added the full SS amount as well as tax free income. :( As far as I know, the Medicare MAGI for IRMAA purposes incl...
by FactualFran
Mon May 18, 2020 2:44 pm
Forum: Personal Investments
Topic: Taxes due on Conversion of simple IRA to Roth IRA
Replies: 6
Views: 502

Re: Taxes due on Conversion of simple IRA to Roth IRA

I know that in 2010 the IRS allowed the taxes due on the conversion of simple IRA to Roth IRA to be spread out over 2 years. Apparently that was the only year this was allowed. Does anyone have more current information which I can cite for my tax accountant. ( This does not concern the Covid provis...
by FactualFran
Sun May 17, 2020 3:00 pm
Forum: Personal Consumer Issues
Topic: 90%+ chocolate bar
Replies: 67
Views: 4818

Re: 90%+ chocolate bar

Trader Joe’s has a gift box around Christmas called chocolate passport for about $10. Has about 10 bars of mostly dark chocolate from all different countries.looks like this... https://www.amazon.com/dp/B00ADG744Q/ The one with Peru as the country of origin is excellent. However, it is 60%, and the...
by FactualFran
Tue May 12, 2020 2:33 pm
Forum: Personal Finance (Not Investing)
Topic: IRS July 15 deadline impact on 2019 (not 2020) estimated taxes interest
Replies: 9
Views: 449

Re: IRS July 15 deadline impact on 2019 (not 2020) estimated taxes interest

The subtle part which is not explained well by IRS releases, is this: If we file and pay taxes on July 15th instead of April 15th, will the penalty/interest stop on April 15th or continue to increase? Lets say I had to pay 5K interest on April 15th in my example, would I pay more in July (at 5% rat...
by FactualFran
Mon May 11, 2020 3:06 pm
Forum: Personal Investments
Topic: Redemption of Treasury Direct Series I Bond question
Replies: 11
Views: 731

Re: Redemption of Treasury Direct Series I Bond question

Interesting. At least according to Treasury Direct that may have changed: https://www.treasurydirect.gov/indiv/research/indepth/ibonds/res_ibonds_iredeem.htm#need Note: Individual paper bonds may not be split and must be cashed in full. At least as recently as 2018-08-01 the appendix to Part 321 of...
by FactualFran
Sun May 10, 2020 3:11 pm
Forum: Personal Investments
Topic: Redemption of Treasury Direct Series I Bond question
Replies: 11
Views: 731

Re: Redemption of Treasury Direct Series I Bond question

no. If you'd like the ability to pull out smaller sums... buy your $1000 in smaller chunks... $200 each... or $100 each... There's no extra charge to buy 10 $100 iBonds vs 1 $1000 iBond Mike I think that only applies to paper I Bonds. It is, or at least was, possible to make partial redemption of p...
by FactualFran
Sun May 10, 2020 2:30 pm
Forum: Investing - Theory, News & General
Topic: Going by PORTFOLIO VISUALIZER Wellesley Income fund lasted 35 years with a 9% withdrawal could this be right?
Replies: 32
Views: 2685

Re: Going by PORTFOLIO VISUALIZER Wellesley Income fund lasted 35 years with a 9% withdrawal could this be right?

From 1985 to 2020. Is this right or did I punch in some wrong number? I looked at it several times maybe I am missing something? You may be missing some of the details of how Portfolio Visualizer (PV) does the calculation. For example with its annual calculations, PV takes the withdrawal for a year...
by FactualFran
Thu May 07, 2020 2:22 pm
Forum: Investing - Theory, News & General
Topic: Vanguard Managed Payout: "There are important changes coming to this fund"?
Replies: 6
Views: 940

Re: Vanguard Managed Payout: "There are important changes coming to this fund"?

https://pressroom.vanguard.com/news/Press-Release-Vanguard-Announces-Changes-To-Managed-Payout-Fund-02282020.html Thanks for the link. The web page included: "The fund has attracted a modest asset base ($1.9 billion) and many shareholders do not utilize the monthly payout feature, choosing instead ...
by FactualFran
Mon May 04, 2020 2:35 pm
Forum: Investing - Theory, News & General
Topic: Leveraged SMA200 Strategy Back-tested 1929 - 2019
Replies: 79
Views: 5081

Re: Leveraged SMA200 Strategy Back-tested 1929 - 2019

Interesting idea. I am wondering how to actually execute it, because it seems there will be days that SPY crosses the SMA200 line back and forth for many times. However, you are absolutely right. The so-called "transition periods" might be annoying and cause some financial losses as you are selling...
by FactualFran
Mon May 04, 2020 2:26 pm
Forum: Personal Finance (Not Investing)
Topic: Taxation of Treasury Notes
Replies: 3
Views: 569

Re: Taxation of Treasury Notes

The example in the opening post has a market discount bond being held until maturity, when the stated principal of the bond is paid. In that case, the value at maturity minus the price paid is taxed as ordinary income. That income may be reported on the tax return for the maturity year or may be acc...
by FactualFran
Wed Apr 22, 2020 6:18 pm
Forum: Investing - Theory, News & General
Topic: VMMXX Vanguard Prime MM Fund
Replies: 15
Views: 3217

Re: VMMXX Vanguard Prime MM Fund

As far as I can tell, by looking in documented sources (Vanguard prospectuses, statement of additional information [legally part of the prospectus], annual reports), FactualFran’s statement about realized capital gains or losses being used to adjust income declarations to keep the NAV at $1.00 is j...
by FactualFran
Mon Apr 20, 2020 2:07 pm
Forum: Investing - Theory, News & General
Topic: VMMXX Vanguard Prime MM Fund
Replies: 15
Views: 3217

Re: VMMXX Vanguard Prime MM Fund

I had the idea that a MM fund of this type maintained it's constant $1.00 per share price by accruing "dividends" daily and paying them out monthly. (This is in additional to the accrual cost basis Geologist previous mentioned.) This is why you do not see price "spikes" when the fund goes ex-divide...
by FactualFran
Sat Apr 18, 2020 2:24 pm
Forum: Investing - Theory, News & General
Topic: VMMXX Vanguard Prime MM Fund
Replies: 15
Views: 3217

Re: VMMXX Vanguard Prime MM Fund

I'm afraid your statement about changes in market value affecting daily income distribution is incorrrect. From the Statement of Additional Information for Vanguard Money Market Funds (p. B-18): "The instruments held by a retail or government money market fund generally are valued on the basis of a...
by FactualFran
Fri Apr 17, 2020 5:34 pm
Forum: Investing - Theory, News & General
Topic: Do most Bogleheads TLH?
Replies: 55
Views: 3262

Re: Do most Bogleheads TLH?

This has nothing to do with passive vs active. Its lowering your taxes with a 3k tax deduction for doing 19 seconds of work. Turning lemons into slightly less sour lemons. A sentence in the opening post was: "I'm wondering if most people who consider themselves passive investors here do TLH." This ...
by FactualFran
Thu Apr 16, 2020 5:54 pm
Forum: Investing - Theory, News & General
Topic: VMMXX Vanguard Prime MM Fund
Replies: 15
Views: 3217

Re: VMMXX Vanguard Prime MM Fund

That would be true if Prime MM was a bond fund, but it is a money market fund. The SEC yield of MM funds doesn't include changes in the value of its securities: "The SEC yield for a money market fund is calculated by annualizing its daily income distributions for the previous 7 days". A Money Marke...
by FactualFran
Thu Apr 16, 2020 5:34 pm
Forum: Investing - Theory, News & General
Topic: Do most Bogleheads TLH?
Replies: 55
Views: 3262

Re: Do most Bogleheads TLH?

I am a mostly passive investor and do not tax loss harvest in the meaning that it tends to have at Bogleheads.org. I have invested in mutual funds subject to capital gain tax for about 35 years. I have intentionally realized a loss only twice, to avoid having an unusually high marginal rate. One of ...
by FactualFran
Sat Apr 11, 2020 2:20 pm
Forum: Personal Finance (Not Investing)
Topic: Estimated taxes and income loss: annualized installment vs. skip 4th quarter
Replies: 4
Views: 302

Re: Estimated taxes and income loss: annualized installment vs. skip 4th quarter

Option (b) in opening post is what I have used for the past few years. For me, filing Form 2210 with Schedule AI completed is more objectionable than paying more than the minimum required amount each quarter based on the income up to the end of the quarter. However, if it is likely that the sum over...
by FactualFran
Thu Apr 09, 2020 4:50 pm
Forum: Personal Finance (Not Investing)
Topic: Wellington and Star Tax Forms
Replies: 8
Views: 699

Re: Wellington and Star Tax Forms

For one fund, should I add these amounts together in one input or do multiple 1099 entries for each in Tax Cut? Adding some details to what BL wrote, there should be a separate entry in Schedule B for each brokerage account (for all the investments in that account) and for each mutual fund held in ...
by FactualFran
Thu Apr 09, 2020 4:45 pm
Forum: Personal Finance (Not Investing)
Topic: 2020 estimated tax dates
Replies: 24
Views: 1526

Re: 2020 estimated tax dates

My expectation for the 2210 regular method this year is that there will still be four due dates and because they must be in sequence for carry-forwards to work, will be 6/15, 7/15, 9/15, and 1/15. But your (newacct's) idea is interesting but it creates a defacto both 1st and 2nd are due on 7/15 as ...
by FactualFran
Wed Apr 08, 2020 4:53 pm
Forum: Personal Finance (Not Investing)
Topic: Wellington and Star Tax Forms
Replies: 8
Views: 699

Re: Wellington and Star Tax Forms

As indicated in at least one other post, the forms that you have received are consistent with a Vanguard mutual funds only account having been converted to a Vanguard Brokerage Services (VBS) account during the year. The fact that distributions of the Wellington fund appears on two sets of forms and...
by FactualFran
Sun Apr 05, 2020 3:32 pm
Forum: Personal Investments
Topic: tax loss harvest by specID while preventing a wash sale
Replies: 33
Views: 1593

Re: tax loss harvest by specID while preventing a wash sale

However, if I wanted to trace it back to the referenced documents... Section 1091.—Loss from Wash Sales of Stock or Securities 26 CFR 1.1091-1: Losses from wash sales of stock or securities. I'm guessing the first reference is to Pub 550 of 2007-2008(?). But to what does the second reference refer?...
by FactualFran
Wed Mar 25, 2020 2:27 pm
Forum: Personal Investments
Topic: Tax-loss harvesting and cost basis (SpecID v. AvgCost)
Replies: 10
Views: 438

Re: Tax-loss harvesting and cost basis (SpecID v. AvgCost)

It is not mandatory to use SpecID to realize a loss. However, SpecID gives more control over what the loss is for a sale. If the per share sale price is less than the per share average basis, then the sale will realized a loss using average basis. IRS regulations about covered shares make a distinct...
by FactualFran
Wed Mar 25, 2020 2:25 pm
Forum: Personal Investments
Topic: Question about Tax Loss Harvesting
Replies: 5
Views: 330

Re: Question about Tax Loss Harvesting

No one posting here has ever been able to quote any statements from the IRS regarding when or how they want to deal with this issue. An intriguing observation is that a few years ago there was a statement in IRS Publication 550 that no two different mutual funds are substantially identical. But tha...
by FactualFran
Sun Mar 22, 2020 2:14 pm
Forum: Personal Investments
Topic: Question about short-term T-bill
Replies: 8
Views: 559

Re: Question about short-term T-bill

That would make sense for most types of long-term bonds, but being short-term this is a discounted T-bill, meaning I purchased twelve $1000 bonds for about $11,908 and am slated to receive $12,000 at maturity. The thing is, it's already reached $12,000 with another 3+ months to go. Will it keep ris...
by FactualFran
Fri Mar 13, 2020 3:33 pm
Forum: Personal Investments
Topic: Does wash sale mean that you cannot TLH until you have held it for 30 days?
Replies: 1
Views: 185

Re: Does wash sale mean that you cannot TLH until you have held it for 30 days?

Wash rules are confusing the hell out of me, because I just learned it works for past transactions as well as future. Since wash sales look at +/-30 days... Does that mean that if I buy stock A, it drops by 50%, and I sell it at T+15, I cannot harvest the loss because I bought it less than 15 days ...
by FactualFran
Fri Mar 13, 2020 3:25 pm
Forum: Investing - Theory, News & General
Topic: Why are bonds falling?
Replies: 236
Views: 5672

Re: Reason for Treasury Bonds going down ?

I found this one explanation http://archive.is/a2qDY, but would love to learn what your perspective is. That look like a good explanation, including: “I am massively worried that institutions are panicking and are unwinding positions at will,” said Tom di Galoma, a managing director at Seaport Glob...
by FactualFran
Tue Mar 10, 2020 2:27 pm
Forum: Personal Finance (Not Investing)
Topic: When Will I Receive My 2019 Delayed Retirement Creditsfrom SS?
Replies: 2
Views: 258

Re: When Will I Receive My 2019 Delayed Retirement Creditsfrom SS?

The Delayed Retirement Credits for 2019 should have been in the benefit amount starting with the first payment for 2020. Each payment for 2020 should be higher than for 2019 due to the Cost Of Living Adjustment of 1.6% and the Delayed Retirement Credits for 2019.
by FactualFran
Mon Mar 09, 2020 4:08 pm
Forum: Personal Investments
Topic: Wash sale - Being triggered by monthly purchase
Replies: 10
Views: 389

Re: Wash sale - Being triggered by monthly purchase

That is what I want to do. Both my eTrade and Fidelity rep are saying I cannot and will trigger the wash sale rule as well as saying that the IRS doesn't care about lots. It could be the case that eTrade and Fidelity (and perhaps other brokers) go through the motions of treating as a wash sale the ...
by FactualFran
Mon Mar 09, 2020 2:30 pm
Forum: Personal Investments
Topic: Wash Sale Question: VOO & VTI Substantially Identical?
Replies: 88
Views: 4493

Re: Wash Sale Question: VOO & VTI Substantially Identical?

Just wondering, didn't that guidance originate before the explosion in index fund popularity, when the vast, overwhelming majority of funds were actively managed? There's probably a reason why it was purposefully edited out of the current publication. I would second this. It made one appearance and...
by FactualFran
Thu Mar 05, 2020 6:12 pm
Forum: Personal Finance (Not Investing)
Topic: Is "buy in" to a CCRC deductible as a medical expense?
Replies: 57
Views: 2721

Re: Is "buy in" to a CCRC deductible as a medical expense?

But all this tax stuff .. you really have to model it with your specific situation. That's right, it depends on the specific situation. Not everyone has taxable accounts and/or proceeds from the sale of house as sources for an entrance fee. Doing Roth conversions before the year of the entrance fee...
by FactualFran
Thu Mar 05, 2020 4:16 pm
Forum: Personal Finance (Not Investing)
Topic: Is "buy in" to a CCRC deductible as a medical expense?
Replies: 57
Views: 2721

Re: Is "buy in" to a CCRC deductible as a medical expense?

I'm not quite following, but since I was wrong before it might just be me. I wouldn't use the Roth to fund the entrance fee in any scenario. My thinking was that suppose your entrance fee is 400k, of which 200k is deductible ( I'm making up numbers here, since I don't know the typical percentage of...
by FactualFran
Thu Mar 05, 2020 3:53 pm
Forum: Personal Investments
Topic: Cost basis question
Replies: 6
Views: 496

Re: Cost basis question

Assuming I eventually sell all shares at once can I simply add up all the cash invested, dividends reinvested and fees/commissions and divide by the number of shares (all)? There is no urgency to sell but the amounts are small enough that I imagine I would sell all of one stock at a time rather tha...
by FactualFran
Thu Mar 05, 2020 3:42 pm
Forum: Personal Finance (Not Investing)
Topic: How can one determine SS indexed wages?
Replies: 11
Views: 613

Re: How can one determine SS indexed wages?

Thanks again for the insight. One final question, are indexed wages also capped at the SS wage cap? So for example if my calculation for 2017 is Max SS Wage of 127,200 multiplied by [2018 Average Wages of 52,146 divided by 2017 Average Wages of 50,322] = 131,810, is my indexed wages for 2017 127,20...
by FactualFran
Wed Mar 04, 2020 6:09 pm
Forum: Personal Finance (Not Investing)
Topic: Is "buy in" to a CCRC deductible as a medical expense?
Replies: 57
Views: 2721

Re: Is "buy in" to a CCRC deductible as a medical expense?

But wow, if you did want to pony up say 300k or 400k for an entrance fee to a CCRC, you could do a huge Roth conversion that year, and if nothing else, make your heirs happy. An alternative to doing a huge Roth conversion in one year is to do smaller conversions during many years. That would possib...
by FactualFran
Wed Mar 04, 2020 4:00 pm
Forum: Personal Investments
Topic: Any pitfalls I should be aware of before doing a backdoor Roth Conversion(details in post)
Replies: 9
Views: 580

Re: Any pitfalls I should be aware of before doing a backdoor Roth Conversion(details in post)

1. Are we allowed to convert more that $6000 of the assets in the traditional IRA to a Roth IRA via the backdoor method? The contribution limit is $6000, and since we transferred from EJ to this IRA, the total is about $10000. I am not sure if there is any limit on the amount that can be converted....
by FactualFran
Tue Mar 03, 2020 4:02 pm
Forum: Investing - Theory, News & General
Topic: Help!! The 4% SWR in real life....
Replies: 23
Views: 2873

Re: Help!! The 4% SWR in real life....

The 4% rule of thumb is implemented by having a moderately allocated portfolio with a balance of 25 times the amount to be spent the during the first year of retirement, with that spending amount being typical for later years when adjusting for inflation. It is not a withdrawal strategy to be strict...
by FactualFran
Tue Mar 03, 2020 3:52 pm
Forum: Personal Investments
Topic: Retirees living off Wellesley Income Fund: how do you manage the nuts and bolts?
Replies: 22
Views: 4375

Re: Retirees living off Wellesley Income Fund: how do you manage the nuts and bolts?

Right, and 22twain knows that. I was asking if you spent all of the capital gains and dividends of Wellesley, would it be able to at least keep up with inflation. So it is correct to just look at the growth in share price to compare that to inflation since, as you say, dividends and capital gains a...
by FactualFran
Tue Mar 03, 2020 3:27 pm
Forum: Personal Investments
Topic: Should we expect EE Savings Bond terms to change soon?
Replies: 12
Views: 872

Re: Should we expect EE Savings Bond terms to change soon?

I recently became interested in EE Bonds. I regret not buying before the new year, but we did max out our purchase limit for 2020 ($10K for myself and $10K for my wife). Based on the doubling in value every 10 years, this is 3.5% which is way better than an equivalent treasury bond today. Informati...
by FactualFran
Mon Mar 02, 2020 4:03 pm
Forum: Personal Investments
Topic: Estimated taxes for 1st year of retirement
Replies: 5
Views: 618

Re: Estimated taxes for 1st year of retirement

If the total amount withheld for a year, whether from withholding 20% of a 401(k) withdrawal or otherwise, actually covers your entire tax liability for the year, or falls short of covering it by less than $1,000, then you will not owe an underpayment penalty.
by FactualFran
Fri Feb 28, 2020 4:25 pm
Forum: Personal Investments
Topic: Do I have a brokerage account?
Replies: 3
Views: 501

Re: Do I have a brokerage account?

When viewing your accounts at the Vanguard web site, does the account look like the following prior to the list of holding?

Image
by FactualFran
Fri Feb 28, 2020 3:54 pm
Forum: Investing - Theory, News & General
Topic: Bloomberg: Vanguard investors do not panic
Replies: 2
Views: 1080

Re: Bloomberg: Vanguard investors do not panic

Vanguard investors do not get scared Even as the coronavirus scare sent equities tumbling this week, mom-and-pop investors made big bets into Vanguard Group Inc.’s exchange-traded funds. Inflows into those ETFs roughly tripled relative to their average daily flow over the last year, jumping to $1.3...
by FactualFran
Wed Feb 26, 2020 5:34 pm
Forum: Personal Investments
Topic: Back Door Roth IRA no longer available for 2020 and beyond?
Replies: 8
Views: 720

Re: Back Door Roth IRA no longer available for 2020 and beyond?

Something may have gotten misstated between the financial advisor, your friend, and you. What has changed is that it is no longer possible to recharacterize a tradition IRA to Roth IRA conversion back to a traditional IRA.
by FactualFran
Wed Feb 26, 2020 3:22 pm
Forum: Personal Investments
Topic: Cost Basis Reporting
Replies: 6
Views: 583

Re: Cost Basis Reporting

As retired@50 wrote, you should speak to a more knowledgeable customer service rep. Here is a quote from IRS Notice 2011-56 To provide consistency between revoking a taxpayer’s average basis election and changing from a broker’s default average basis method, the proposed regulations are expected to ...
by FactualFran
Fri Feb 21, 2020 3:25 pm
Forum: Personal Finance (Not Investing)
Topic: Trying to Understand Tax Safe Harbor Rule
Replies: 4
Views: 555

Re: Trying to Understand Tax Safe Harbor Rule

If we pay 110% of the 30K (so 33K) by April 2021, are we in the clear regardless of what our 2020 income is? And, can we pay all $33K next year by April, or do we need to make quarterly estimated payments? You would not be in the clear by paying 110% of the 2019 income tax in April 2021 as the only...
by FactualFran
Thu Feb 20, 2020 4:59 pm
Forum: Investing - Theory, News & General
Topic: 4% SWR: It is not a rule and it is not safe (anymore).
Replies: 273
Views: 18833

Re: 4% SWR: It is not a rule and it is not safe (anymore).

The original study that "created" the 4% rule had a 90% success at 30 years. So it is not true that 4% has always worked. The original study determined that 4% had always worked. The original study was Determining Withdrawal Rates Using Historical Data by William P. Bengen. The study used the actua...
by FactualFran
Wed Feb 19, 2020 4:00 pm
Forum: Personal Finance (Not Investing)
Topic: Understanding a stocks price from 1995
Replies: 22
Views: 1395

Re: Understanding a stocks price from 1995

I guess I am having problems with the split adjusted prices shown currently in that there were splits prior to my purchase dates, and I don't know how or if that would have a bearing on the split adjusted price as shown. In other words, is the adjusted price currently shown from the very beginning ...
by FactualFran
Tue Feb 18, 2020 7:04 pm
Forum: Investing - Theory, News & General
Topic: 4% SWR: It is not a rule and it is not safe (anymore).
Replies: 273
Views: 18833

Re: 4% SWR: It is not a rule and it is not safe (anymore).

Everything in CDs even at today's rates would suffice. No? No, because the returns that have been posted are real returns. A CD that made inflation-adjusted interest payments with an initial interest payment of 4% annual would suffice. I don't know of any such CDs. Assuming a constant inflation rat...
by FactualFran
Tue Feb 18, 2020 6:28 pm
Forum: Investing - Theory, News & General
Topic: 4% SWR: It is not a rule and it is not safe (anymore).
Replies: 273
Views: 18833

Re: 4% SWR: It is not a rule and it is not safe (anymore).

With zero volatility, 1.22% real returns guarantee that the '4% rule' works (i.e. full capital depletion). It is 1.22% if one gets an interest free loan for up to 12 months (the withdrawal for a year is made at the end of the year). For those who cannot get an interest free loan for up to 12 months...
by FactualFran
Tue Feb 18, 2020 5:40 pm
Forum: Personal Investments
Topic: Can short-term capital gains distributions count as qualified dividends?
Replies: 12
Views: 1111

Re: Can short-term capital gains distributions count as qualified dividends?

Is it true that short term capital gains distributions can be treated as qualified dividends? At least not directly, I suspect. For accounting purposes, mutual funds can treat the expenses they charge as being taken from the dividends of the fund. The shareholders of the fund receive the net divide...
by FactualFran
Tue Feb 18, 2020 5:24 pm
Forum: Investing - Theory, News & General
Topic: 4% SWR: It is not a rule and it is not safe (anymore).
Replies: 273
Views: 18833

Re: 4% SWR: It is not a rule and it is not safe (anymore).

As I have been posting for a while, attracting all kind of criticism, in an environment characterized by historically extremely low bond yields, all the rather empirical arguments in defense of a sustainable 4% withdrawal kind of go out of the window. In order to support total portfolio yield one w...