Search found 739 matches

by FactualFran
Tue Nov 13, 2018 5:16 pm
Forum: Personal Finance (Not Investing)
Topic: 2018 Tax Time is upon us
Replies: 13
Views: 2153

Re: 2018 Tax Time is upon us

All the stuff that used to go on form 1040 now goes on a 1040 worksheet and the key items on the worksheet go to line items on the POSTCARD . :twisted: Stuff that used to go on Form 1040 will go on Form 1040 and up to six schedules. I'll be going from filing a single sheet of paper for Form 1040 to...
by FactualFran
Fri Nov 09, 2018 3:47 pm
Forum: Investing - Help with Personal Investments
Topic: Wash Sale at Fidelity
Replies: 6
Views: 375

Re: Wash Sale at Fidelity

if I were to sell the 10/12/18 lot today, would that 'cure' the wash sale problem for the previous lots ? I assume Fido (which uses Gainskeeper) will fix the basis for all lots (sold and this one) at tax time (or maybe I fix manually at tax time using my sale transaction records) ? Whether it will ...
by FactualFran
Tue Nov 06, 2018 4:04 pm
Forum: Investing - Theory, News & General
Topic: I Bond fixed rate = 0.5%
Replies: 86
Views: 7594

Re: I Bond fixed rate = 0.5%

That was my understanding. The Treasury Direct website previously showed my composite rate as 2.52%, but for some reason now shows 2.62%. What Treasury Direct web page? The Series I Savings Bonds Rates & Terms: Calculating Interest Rates web page has a What is the current composite rate for my I bo...
by FactualFran
Tue Nov 06, 2018 3:29 pm
Forum: Investing - Theory, News & General
Topic: I Bond fixed rate = 0.5%
Replies: 86
Views: 7594

Re: I Bond fixed rate = 0.5%

I don't understand why my Series I savings bond rate changed. I bought it in September so the composite rate shouldn't change for 6 months I thought? Likely, many other don't understand it either. A Series I Savings Bonds issued in September 2018 has a fixed rate of 0.3%. The composite rate for its...
by FactualFran
Mon Nov 05, 2018 3:35 pm
Forum: Personal Finance (Not Investing)
Topic: Switching 2018 contributions between Roth/tIRA "in kind"?
Replies: 8
Views: 445

Re: Switching 2018 contributions between Roth/tIRA "in kind"?

Just wondering if anyone knew if certain recharacterizations between retirement accounts could be accomplished with a simple transfer "in kind." Any way, seems like the brokerage handles all the calculations of the recharacterization's earnings/losses for the investor. Likely, an "in kind" recharac...
by FactualFran
Sat Nov 03, 2018 11:49 am
Forum: Investing - Help with Personal Investments
Topic: When to redeem EE savings bond?
Replies: 7
Views: 859

Re: When to redeem EE savings bond?

I don't know what "tax penalty for interest" you mean. To get the maximum redemption value, an EE Savings Bond purchased in Jan. 1989 should be redeemed in Jan. 2019. The last interest payment will be for Dec. 2018, but because interest accrues on the 1st day of the next month, the savings bond need...
by FactualFran
Fri Nov 02, 2018 4:48 pm
Forum: Investing - Help with Personal Investments
Topic: Estimating SS benefits between FRA and age 70
Replies: 10
Views: 860

Re: Estimating SS benefits between FRA and age 70

So I am born in mid-July 1957. My FRA is 66 yrs 6 mos, which would take me into January 2024. I am definitely wanting to wait past that, quite possibly to age 70. Is age 70 July 1 2027, by the way, or Aug 1 2027? Does the Delayed Retirement Credit happen only once yearly, in January 2025 (age 67.5)...
by FactualFran
Fri Nov 02, 2018 3:16 pm
Forum: Personal Finance (Not Investing)
Topic: Savings Bond Wizard replacement is available
Replies: 28
Views: 8523

Re: Savings Bond Wizard replacement is available

I am no longer using the Wizard and I didn't last May either. Since then I used the Savings Bond Calculator which is what I am referring to.. It worked perfectly 6 months ago. The Savings Bond Calculator worked correctly for me when I tried it a few minutes ago on a saved inventory. It reported the...
by FactualFran
Fri Nov 02, 2018 2:45 pm
Forum: Investing - Help with Personal Investments
Topic: Estimating SS benefits between FRA and age 70
Replies: 10
Views: 860

Re: Estimating SS benefits between FRA and age 70

Am I correct in assuming that my SS benefits basically increase on a straight line between FRA and age 70? In other words, if I wanted to estimate my benefit at age 68, everything else being equal, would a graph plotted monthly provide that answer? The starting SS benefit does not increase in a str...
by FactualFran
Fri Nov 02, 2018 2:35 pm
Forum: Personal Finance (Not Investing)
Topic: Savings Bond Wizard replacement is available
Replies: 28
Views: 8523

Re: Savings Bond Wizard replacement is available

Thanks. Yes,I am using everything the same. Are YOU downloading? I have sent an email to the Treas to see what they say. I have downloaded Savings Bond Value Files in the past and used them with software that understands the format of those files. I doubt if the, no longer supported, Savings Bond W...
by FactualFran
Thu Nov 01, 2018 4:42 pm
Forum: Personal Finance (Not Investing)
Topic: Savings Bond Wizard replacement is available
Replies: 28
Views: 8523

Re: Savings Bond Wizard replacement is available

I am attempting to download the Dec 2018-May 2019 Savings 'Bond Value Files. All I get is numbers gibberish. The earlier one in May worked fine. Is anyone successfully downloading it? The Savings Bond Value Files are "numbers gibberish" except to software that understands the file format. Are you u...
by FactualFran
Tue Oct 30, 2018 4:52 pm
Forum: Personal Finance (Not Investing)
Topic: Tax refunds expected to be 26% more in 2019
Replies: 52
Views: 5687

Re: Tax refunds expected to be 26% more in 2019

The amount that I will owe with my 2018 tax return will be about 46% less than what I owed with my 2017 tax return. The tax law changes have little to do with it. The higher amount in "safe harbor" payments during the year have a lot to do with it.
by FactualFran
Tue Oct 16, 2018 2:37 pm
Forum: Investing - Theory, News & General
Topic: Social Security COLA - how is it applied?
Replies: 13
Views: 1339

Re: Social Security COLA - how is it applied?

My question was answered by the link that Fran posted as follows: " For example, a worker who attained age 62 in 2014 would receive cost-of-living adjustments for the years 2014 –2016. The adjustments are cumulative, with each step rounded to the next lower dime. If the PIA at age 62 was $700, the ...
by FactualFran
Mon Oct 15, 2018 3:29 pm
Forum: Investing - Theory, News & General
Topic: Social Security COLA - how is it applied?
Replies: 13
Views: 1339

Re: Social Security COLA - how is it applied?

There are a number of details involved in calculating the Social Security Retirement benefit amount and COLAs to it. Avoiding some of the details, the benefit amount when starting at age 62 does not include a COLA. A COLA is applied at the end of later years. The age 62 benefit amount depends on the...
by FactualFran
Fri Oct 12, 2018 5:42 pm
Forum: Personal Finance (Not Investing)
Topic: Asterisks on Form 8606 for Backdoor Roth?
Replies: 5
Views: 538

Re: Asterisks on Form 8606 for Backdoor Roth?

It's not deductible at all. The wording in the Contribution and distribution in the same year paragraph of IRS Publication 590-B (for 2017) is: "If you received a distribution in 2017 from a traditional IRA and you also made contributions to a traditional IRA for 2017 that may not be fully deductib...
by FactualFran
Fri Oct 12, 2018 4:38 pm
Forum: Personal Finance (Not Investing)
Topic: Asterisks on Form 8606 for Backdoor Roth?
Replies: 5
Views: 538

Re: Asterisks on Form 8606 for Backdoor Roth?

As other posts have indicated, what Turbo Tax is doing is correct. According to IRS Publication 590-B, you need to use a worksheet in the publication if you made contributions to a traditional IRA for a that may not be fully deductible. What lines of Form 8606 are to be filled-in depend on a value c...
by FactualFran
Wed Oct 10, 2018 6:13 pm
Forum: Investing - Help with Personal Investments
Topic: Comparing my performance against S&P 500
Replies: 20
Views: 1321

Re: Comparing my performance against S&P 500

Thanks for your reply. My goal is to compare a specific transaction vs some index. Comparing the performance of the overall fund (which includes cash, bonds, etc) is important too. I'm looking to create a website that can do this. Any interest in checking it out when it goes live? I certainly would...
by FactualFran
Wed Oct 10, 2018 3:39 pm
Forum: Investing - Theory, News & General
Topic: How are stock dividends and bond coupons distributed in funds investment?
Replies: 6
Views: 483

Re: How are stock dividends and bond coupons distributed in funds investment?

I wonder when I hold a total market stock fund how I receive the dividend, and similarly how I receive coupon payment for a total bond fund. In the context of 401k, do I received dividend and coupon in cash and reinvest at the time of re-balance? Or these dividend and coupon payments become part of...
by FactualFran
Tue Oct 09, 2018 2:01 pm
Forum: Investing - Help with Personal Investments
Topic: Choosing Fund Cost-Basis Methods
Replies: 9
Views: 389

Re: Choosing Fund Cost-Basis Methods

I plan to sell all the shares, they were previously purchased by a financial advisor and I plan to switch it over and consolidate into VTSAX. If you sell all the shares, then the total gain or loss is the same for all cost or basis methods. In general, the average basis method will split the total ...
by FactualFran
Sat Oct 06, 2018 12:23 pm
Forum: Personal Finance (Not Investing)
Topic: State Income Tax (NJ) question on Gain from selling Treasury Bonds
Replies: 4
Views: 396

Re: State Income Tax (NJ) question on Gain from selling Treasury Bonds

I did see that, however, it is not clear how the $1 in my example would be handled. For federal income tax purposes that is viewed as "accrued market discount" which in effect is taxed like regular interest. It seems obvious that because market discount is taxed like interest and interest of a dire...
by FactualFran
Sat Oct 06, 2018 11:30 am
Forum: Personal Finance (Not Investing)
Topic: State Income Tax (NJ) question on Gain from selling Treasury Bonds
Replies: 4
Views: 396

Re: State Income Tax (NJ) question on Gain from selling Treasury Bonds

According to the NJ Division of taxation Exempt (Nontaxable) Income web page, one type of income not subject to New Jersey tax but should be reported in the the total amount of nontaxable interest on the "Tax exempt interest" line of the return is: "Interest and capital gains from obligations of the...
by FactualFran
Thu Oct 04, 2018 3:09 pm
Forum: Personal Finance (Not Investing)
Topic: Estimated tax payment for Q4 Roth rollovers?
Replies: 5
Views: 573

Re: Estimated tax payment for Q4 Roth rollovers?

I believe I could avoid penalties by making payments to 110% of our 2017 tax by the January deadline. (I understand that I'll need to be sure that TurboTax adds Form 2210 to reflect the rollover timing.) Or I could make the payment now. Or I could pay the full amount of what I expect to owe based o...
by FactualFran
Tue Oct 02, 2018 3:08 pm
Forum: Investing - Help with Personal Investments
Topic: Wash sale question
Replies: 14
Views: 622

Re: Wash sale question

Yes, the taxable account has a loss now. When I reread a wash rule it seems that shares bought with reinvested dividends Sept. 20th constitutes a replacement share purchases if I sell soon for a loss since both events would be inside the 30 day window so that is my hesitancy. Any shares sold as par...
by FactualFran
Sat Sep 29, 2018 11:43 am
Forum: Investing - Help with Personal Investments
Topic: Are social security (and Medicare) taxes affected by the standard deduction
Replies: 26
Views: 2838

Re: Are social security (and Medicare) taxes affected by the standard deduction

Standard deduction increases each year with inflation. Believe it is the same inflation that causes Social Security amounts to increase (CPI-W). Under current tax law, the Standard Deduction increases each year based on the Chained CPI (C-CPI-U). The increase is based on averages of the C-CPI-U ove...
by FactualFran
Fri Sep 28, 2018 2:10 pm
Forum: Personal Finance (Not Investing)
Topic: SS 2019 COLA could be close to 3%
Replies: 55
Views: 6027

Re: SS 2019 COLA could be close to 3%

wrongfunds wrote:
Fri Sep 28, 2018 10:36 am
I am still not getting it. What was the premium before it went to $134? Was it $130? Why is that such a big concern?
The standard Medicare Part B monthly premium was $121.80 in 2016, prior to being $134 in 2017 and 2018.
by FactualFran
Thu Sep 27, 2018 3:06 pm
Forum: Investing - Theory, News & General
Topic: Why don't I read about this strategy more? It seems reasonable and pretty straight forward.
Replies: 68
Views: 8620

Re: Why don't I read about this strategy more? It seems to beat everything else

Why not simply buy an index (like S&P500) when the 12 month moving average is flat or going up, and sell when it is going down. I don't believe I can predict the future at all, but I know for sure I can tell which way a line is going on a graph over a period of time. The key distinction here is tha...
by FactualFran
Tue Sep 25, 2018 4:51 pm
Forum: Investing - Help with Personal Investments
Topic: Is Everyone Still Positive on Wellesley?
Replies: 12
Views: 2034

Re: Is Everyone Still Positive on Wellesley?

Q: Why stay with it?
A: Because I am a long-term buy and hold investor. My past experience at market timing was unsuccessful.

The Morningstar rating of 5 stars is based on past performance and does not indicate what the future performance will be.
by FactualFran
Tue Sep 25, 2018 3:54 pm
Forum: Investing - Theory, News & General
Topic: Inflation and withdrawal from portfolio
Replies: 23
Views: 944

Re: Inflation and withdrawal from portfolio

I'm sorry - you guys are correct. I apologize for the confusion. He reinvests any capital gains that a fund or etf distributes. He also doesn't sell any shares. He only lives on a portion of the dividends and interest. He wonders if that type of withdrawal will keep up with inflation. Whether that ...
by FactualFran
Fri Sep 21, 2018 3:15 pm
Forum: Investing - Theory, News & General
Topic: VG Muni Bond Fund Question
Replies: 5
Views: 656

Re: VG Muni Bond Fund Question

Here are two relevant quotes from the prospectus of a Vanguard bond fund. You generally begin earning dividends on the business day following your trade date. When buying money market fund shares through a federal funds wire on a business day, however, you generally can begin earning dividends immed...
by FactualFran
Thu Sep 20, 2018 1:59 pm
Forum: Personal Finance (Not Investing)
Topic: General 2018 Tax Question
Replies: 33
Views: 3756

Re: General 2018 Tax Question

The tax rates themselves will be lower, so that must be changed in home-grown spreadsheet tax programs (unless the user just stops at taxable income and the tax is manually entered). For me, replacing the tax table in a spreadsheet is easy. I have done it for a number of years. The spreadsheet form...
by FactualFran
Tue Sep 18, 2018 2:21 pm
Forum: Personal Finance (Not Investing)
Topic: Wolters Kluwer announces 2019 Inflation Adj
Replies: 5
Views: 1171

Re: Wolters Kluwer announces 2019 Inflation Adj

Looks like standard deduction would only increase 1.67% vs. a CPI inflation of ~2.5%... That’s the “Chained CPI-U mentioned above. What is the source of the "CPI inflation of ~2.5%"? Using the Chained CPI-U values from the Bureau of Labor Statistics, I get a 2.06% difference between the Sep.2017 to...
by FactualFran
Mon Sep 17, 2018 2:46 pm
Forum: Personal Finance (Not Investing)
Topic: Wolters Kluwer announces 2019 Inflation Adj
Replies: 5
Views: 1171

Re: Wolters Kluwer announces 2019 Inflation Adj

A limit that is frequently mentioned in Bogleheads forums but not in the article is the top of the 0% long-term capital gain bracket. For someone with a filing status of Single, the inflation adjusted value should be $39,350 (up from $38,600 for 2018).
by FactualFran
Fri Sep 14, 2018 3:37 pm
Forum: Investing - Help with Personal Investments
Topic: Taxes on Cap Gain Distributions and Dividends in a self directed IRA. How to handle at age 65 ?
Replies: 6
Views: 269

Re: Cap Gain Distributions and Dividends in a self directed IRA. How are Taxes Handled at 65 ?

You do not have to worry about taxes on the distributions of investments held in a IRA. You do not have to worry about taxes until you take money from the IRA, ignoring extreme circumstances, such as contributing too much to an IRA.
by FactualFran
Thu Sep 13, 2018 3:57 pm
Forum: Personal Finance (Not Investing)
Topic: Is this even possible ? Roth IRA to tIRA (not recharactarization)
Replies: 2
Views: 231

Re: Is this even possible ? Roth IRA to tIRA (not recharactarization)

According to the Rollover Chart document by the IRS, a rollover from a Roth IRA to a Traditional IRA is not allowed.
by FactualFran
Wed Sep 12, 2018 3:02 pm
Forum: Personal Finance (Not Investing)
Topic: Roth IRA Excess Removal and Recharacterization
Replies: 9
Views: 896

Re: Roth IRA Excess Removal and Recharacterization

2 questions: 1) If I were to re-characterize my $1K from Roth to TIRA, can i then backdoor it into Roth again? 2) If I removed the $1K excess contribution from Roth, write a check to contribute the $1K to TIRA, can i then backdoor that $1K into Roth? Money in a traditional IRA can be converted to a...
by FactualFran
Tue Sep 11, 2018 4:52 pm
Forum: Personal Finance (Not Investing)
Topic: backdoor Roth conversion - is this is correct?
Replies: 12
Views: 1021

Re: backdoor Roth conversion - is this is correct?

Please avoid using the term "backdoor Roth". There is no separate type of Roth IRA that is a "backdoor Roth". There is a multi-step procedure known as a "backdoor Roth contribution". Those whose income is too high to make a contribution to a Roth IRA may first contribute to a traditional IRA and the...
by FactualFran
Mon Sep 10, 2018 4:25 pm
Forum: Investing - Help with Personal Investments
Topic: Double check on wash sale (or not)
Replies: 9
Views: 390

Re: Double check on wash sale (or not)

As far as I know, there has been no ruling about what you propose doing as being a wash sale. There has been a ruling that if one sells for a loss in a taxable account and buy a substantially identical security within 30 days in an IRA, then there is a wash sale and the tax loss is disallowed. What ...
by FactualFran
Mon Sep 10, 2018 2:07 pm
Forum: Personal Finance (Not Investing)
Topic: IRS Tax Letter - TIRA to 401k
Replies: 15
Views: 1316

Re: IRS Tax Letter - TIRA to 401k

Here is relevant quote for Exception 1 in the instruction for Lines 15a and 15b for Form, which others have metioned without a link Exception 1. Enter the total distribution on line 15a if you rolled over part or all of the distribution from one: Roth IRA to another Roth IRA, or IRA (other than a Ro...
by FactualFran
Thu Sep 06, 2018 2:39 pm
Forum: Investing - Help with Personal Investments
Topic: Help with Savings Bonds Yield
Replies: 4
Views: 378

Re: Help with Savings Bonds Yield

Caution-I'm no math wizzard and can't get my head around I bond interest rates. I purchased some in 2010 with a rate of 2.78%. 5K bond now worth $5958. Last valuation shows yield of 2.11%. How does the computation work? I-Bonds that were purchased from Jan. to Apr. 2010 had a composite earnings rat...
by FactualFran
Thu Sep 06, 2018 2:10 pm
Forum: Personal Finance (Not Investing)
Topic: Roth IRA Excess Removal and Recharacterization
Replies: 9
Views: 896

Re: Roth IRA Excess Removal and Recharacterization

So I called Vanguard to ask about this. They said that their system just doesn't adjust. If I want, I could send them a check for the $1K contribution but on my online account, it will show 5.5K contribution and I cannot do the contribution online. Another possibility that you may want to ask Vangu...
by FactualFran
Wed Sep 05, 2018 3:11 pm
Forum: Forum Issues and Administration
Topic: Posts with HTML
Replies: 6
Views: 475

Re: Posts with HTML

I occasionally see posts with embedded HTML: <t>Hello,<br/> I've been reading Jack's books and this forum's discussions for long time, and I am grateful to all the things I learnt from you guys.<br/> <br/> https://www.bogleheads.org/forum/viewtopic.php?p=4104018 How does this come about? Are they u...
by FactualFran
Wed Sep 05, 2018 2:26 pm
Forum: Personal Finance (Not Investing)
Topic: Roth IRA Excess Removal and Recharacterization
Replies: 9
Views: 896

Re: Roth IRA Excess Removal and Recharacterization

I then submitted an excess contribution removal form to Vanguard to remove the $1K ROTH IRA contribution where it seems like I should have done a re characterization from roth IRA to Traditional IRA instead. What should I do now, effectively, I only contributed 4.5K to the traditional IRA for the y...
by FactualFran
Fri Aug 31, 2018 5:38 pm
Forum: Investing - Theory, News & General
Topic: "Mutual Funds and Securities Lending"
Replies: 32
Views: 1774

Re: "Mutual Funds and Securities Lending"

UpsetRaptor wrote:
Fri Aug 31, 2018 5:02 pm
As long as the ER stays 0.
And as long as the total return is close enough to funds with a very similar investment objective.
by FactualFran
Fri Aug 31, 2018 2:51 pm
Forum: Investing - Theory, News & General
Topic: Taxable account cost basis. Specific ID, FIFO or average cost?
Replies: 18
Views: 1304

Re: Taxable account cost basis. Specific ID, FIFO or average cost?

not very arcane............right there at the beginning of the ST and LT sections of the 8949 https://www.irs.gov/pub/irs-pdf/f8949.pdf Likely, some find the relevant instructions for Form 8949 to be arcane. Form 8949 isn't required for certain transactions. You may be able to aggregate those trans...
by FactualFran
Thu Aug 30, 2018 1:45 pm
Forum: Investing - Theory, News & General
Topic: Taxable account cost basis. Specific ID, FIFO or average cost?
Replies: 18
Views: 1304

Re: Taxable account cost basis. Specific ID, FIFO or average cost?

What do you guys do for your taxable account cost basis; specific ID, First in First out or average cost and why? Is there a good place to read a discussion on each method and why one would chose one over the other, a pro/con explanation? I usually use average basis. I started investing in mutual f...
by FactualFran
Tue Aug 28, 2018 2:15 pm
Forum: Personal Finance (Not Investing)
Topic: Series EE Bonds: Extended Maturity Period Rates
Replies: 5
Views: 888

Re: Series EE Bonds: Extended Maturity Period Rates

Can someone direct me to a simple table showing the rates for extended maturity periods for EE bonds, 1988 through the mid 90s? Got about $15K in face value in my daughter's name and want to get rid of them (I mean bestow them on her). Just wondering which, if any, are worth keeping after their mat...
by FactualFran
Sat Aug 25, 2018 12:32 pm
Forum: Investing - Help with Personal Investments
Topic: 100% in Tech index funds or ETFs?
Replies: 10
Views: 893

Re: 100% in Tech index funds or ETFs?

Here is a paragraph from the The Marriage of Information Technology and Investing: For Richer or Poorer? speech that John Bogle made in 2001. Finally, if you are concentrated in technology stocks today, don't stay the course. The broadest possible diversification is the best possible diversification...
by FactualFran
Fri Aug 17, 2018 1:54 pm
Forum: Personal Finance (Not Investing)
Topic: physics/math major looking for programmer/analyst job?
Replies: 89
Views: 5884

Re: physics/math major looking for programmer/analyst job?

Is your nephew more interested in doing "programmer/analyst" type work or "software engineer" type work? If the former, then he should concentrate on landing a job usually classified as an Information Technology (IT) position. If a nearby community college offers an IT associate degree, he should co...
by FactualFran
Mon Aug 13, 2018 5:57 pm
Forum: Investing - Theory, News & General
Topic: Request for distribution data of Vanguard REIT Index Fund
Replies: 10
Views: 1017

Re: Request for distribution data of Vanguard REIT Index Fund

Believe OP is looking for the number that would show up as Box 3, Non-dividend Distributions, on a 1099-DIV. That's the return of capital that reduces the basis of a REIT. Not an issue if the REIT is held in tax-deferred account. The OP is not looking for the number that would show up on Box 3 on a...