Search found 453 matches

by FactualFran
Mon Dec 11, 2017 4:04 pm
Forum: Personal Finance (Not Investing)
Topic: CDs that compound interest payments, at big brokerages ?
Replies: 14
Views: 1156

Re: CDs that compound interest payments, at big brokerages ?

Question about buying CD's on the secondary market - When the CD matures, is there a capital gain/loss if you had bought it below/above par? If so, is this an additional consideration when figuring the yield to maturity or is it somehow figured in? Usually, there will not be a capital gain or loss ...
by FactualFran
Sat Dec 09, 2017 11:22 am
Forum: Investing - Help with Personal Investments
Topic: IRS Rule of 55 vs. 72(t) Distribution
Replies: 8
Views: 865

Re: IRS Rule of 55 vs. 72(t) Distribution

At a risk of adding to the confusion, the "Rule of 55" and Substantially Equal Period Payments are both in section 72(t) of the tax code as exceptions to the 10% additional tax on early distributions.
by FactualFran
Wed Dec 06, 2017 2:44 pm
Forum: Investing - Theory, News & General
Topic: Are Dividends Perceived as Moral; Capital Value Changes as Immoral?
Replies: 55
Views: 2972

Re: Are Dividends Perceived as Moral; Capital Value Changes as Immoral?

Whether something is moral is usually a religious issue. Some religions consider interest as being immoral but an equity stake as being moral. I don't know whether religions that consider interest as being immoral also consider dividends from preferred stock to be immoral.
by FactualFran
Wed Dec 06, 2017 2:33 pm
Forum: Investing - Help with Personal Investments
Topic: Roth IRA and Tax Withholding
Replies: 6
Views: 535

Re: Roth IRA and Tax Withholding

It should be possible to rollover the entire amount to a Roth IRA. Take the entire amount of the IRA or 401(k) as a distribution and have income tax withheld from distribution. You should receive the net amount after the income tax withholding. You can rollover the entire amount (the net amount rece...
by FactualFran
Fri Dec 01, 2017 3:25 pm
Forum: Investing - Help with Personal Investments
Topic: Vanguard Cost Basis
Replies: 25
Views: 1581

Re: Vanguard Cost Basis

I have never discovered a problem with the cost basis information reported by Vanguard. I track cost basis because most of the shares I owe are non-covered shares. With those shares it is my responsibility to determine the cost of other basis to report to the IRS. I have spreadsheet for each mutual ...
by FactualFran
Thu Nov 30, 2017 3:20 pm
Forum: Investing - Help with Personal Investments
Topic: Cost Basis Method
Replies: 8
Views: 643

Re: Cost Basis Method

Alright thanks for the replies. Why does Vanguard use FIFO as their default option instead of Specific ID than? Because that is what the regulations state. According to the regulations, except for mutual funds and dividends reinvestment programs, a broker must report using the FIFO basis determinat...
by FactualFran
Sat Nov 25, 2017 1:10 pm
Forum: Personal Finance (Not Investing)
Topic: Tax Software and handling of Schedule D
Replies: 15
Views: 1277

Re: Tax Software and handling of Schedule D

Those who use tax software likely should not be concerned about whether the tax return generated by the software uses lines 1a or 8a on Schedule D, when possible, instead of using lines 1b or 8b on Schedule D with each sale listed on Form 8949. Lines 1a and 8a on Schedule D can be viewed as reducing...
by FactualFran
Fri Nov 24, 2017 3:23 pm
Forum: Investing - Theory, News & General
Topic: Minimizing capital gains assuming FIFO basis
Replies: 26
Views: 1963

Re: Minimizing capital gains assuming FIFO basis

To me First-In, First-out identifies the shares sold and NOT the Cost Basis Method. For mutual fund (but not stocks and not ETFs), the First-In shares could have a cost basis method of Average Cost or Actual Cost. Stocks and ETFs must use Actual Cost no matter which shares are sold. To the IRS, Fir...
by FactualFran
Mon Nov 20, 2017 3:16 pm
Forum: Investing - Help with Personal Investments
Topic: Cost basis question about Vanguard's covered/uncovered mutual fund shares
Replies: 28
Views: 1453

Re: Cost basis question about Vanguard's covered/uncovered mutual fund shares

And a question. Are some suggesting above that one can hold a mix of same fund at same broker that is partly average cost method (the older uncovered) shares and partly specific ID (the newer covered shares)? I have always understood that a cost method election for a mutual fund was forever. Yes, i...
by FactualFran
Mon Nov 20, 2017 2:24 pm
Forum: Investing - Help with Personal Investments
Topic: Cost basis question about Vanguard's covered/uncovered mutual fund shares
Replies: 28
Views: 1453

Re: Cost basis question about Vanguard's covered/uncovered mutual fund shares

I understand your point about FIFO and SpecID, but does seem Vanguard draws a distinction between SpecID and FIFO, but maybe this is just a convenience for the customer when selling online? https://investor.vanguard.com/taxes/cost-basis/methods FIFO can be considered to be a preset way of determini...
by FactualFran
Mon Nov 20, 2017 1:58 pm
Forum: Personal Finance (Not Investing)
Topic: Help w/ NY state tax return and attachments
Replies: 3
Views: 355

Re: Help w/ NY state tax return and attachments

I don't know what you can do differently on your tax return. However, I suggest you get HR Block involved. Inform them of the notice you have received from NY State. Ask HR Block to confirm that the tax return generated by their software is correct from their point of view. If it is, then ask HR Blo...
by FactualFran
Fri Nov 17, 2017 3:45 pm
Forum: Investing - Help with Personal Investments
Topic: [Traditional to Roth IRA conversion - backdoor?]
Replies: 6
Views: 400

Re: [Traditional to Roth IRA conversion - backdoor?]

If the total balance of an individual's traditional, SEP, and SIMPLE IRAs is $X and the total basis (non-deducted contributions) of those IRAs is $X, then income tax would not be owed on a conversion done from those IRAs to a Roth IRA. If the total basis was half of the balance, then income tax woul...
by FactualFran
Thu Nov 16, 2017 6:03 pm
Forum: Investing - Help with Personal Investments
Topic: Cost basis question about Vanguard's covered/uncovered mutual fund shares
Replies: 28
Views: 1453

Re: Cost basis question about Vanguard's covered/uncovered mutual fund shares

I'm not an expert, but I think if you ever used the average cost basis in the past to sell shares of this fund, you can't now change to a different cost basis method for this fund. (The covered/uncovered shares might throw a bit of a wrinkle into that, since those are kind of separated within a sin...
by FactualFran
Tue Nov 14, 2017 3:10 pm
Forum: Investing - Theory, News & General
Topic: The 4% rule DOES fail but still makes sense!
Replies: 195
Views: 14952

Re: The 4% rule DOES fail but still makes sense!

First, many MMM people's claim is: the 4% rule never fails. They did not understand the statistics. The original 4% rule calculation had a success rate of about 96%, so it did fail in about 4% of the tested cases. I don't know who the MMM people are, but the 4% inital withdrawal rate idea originate...
by FactualFran
Thu Nov 09, 2017 4:16 pm
Forum: Investing - Help with Personal Investments
Topic: Cost Basis Method Selling VTSAX in Taxable?
Replies: 22
Views: 1628

Re: Cost Basis Method Selling VTSAX in Taxable?

Edited to add: as others have said, another reason to use Spec ID is to give you better control over whether the capital gains/losses you incur are short-term or long-term. If you do not specify which shares you're selling, you may end up with a sale resulting in short-term gains/losses, which are ...
by FactualFran
Thu Nov 09, 2017 4:10 pm
Forum: Investing - Help with Personal Investments
Topic: Cost Basis Method Selling VTSAX in Taxable?
Replies: 22
Views: 1628

Re: Cost Basis Method Selling VTSAX in Taxable?

I think you can change it after you set it. So maybe you can sell at Average Cost and later decide to switch to SpecID without a problem. That depends on whether one considers it to be a problem that all the shares bought before the change from Average Basis to SpecID (but not yet sold) have a cost...
by FactualFran
Wed Nov 08, 2017 3:23 pm
Forum: Investing - Theory, News & General
Topic: [Yahoo Finance no longer works - Alternatives to download securities quotes]
Replies: 254
Views: 25612

Re: [Yahoo Finance no longer works - Alternatives to download securities quotes]

For people who just want to download a .csv file of the latest prices of a list of tickers, it looks like Yahoo's json api still works, e.g. http://query1.finance.yahoo.com/v7/finance/quote?symbols=aapl,goog,amzn,msft&fields=regularMarketPrice which you can chain thru a site like "powered by json-c...
by FactualFran
Fri Nov 03, 2017 4:05 pm
Forum: Investing - Help with Personal Investments
Topic: "Re-Recharacterize" Traditional to Roth
Replies: 12
Views: 688

Re: "Re-Recharacterize" Traditional to Roth

Thank you. This is what i expected. by chance, do you know if i am able to create another traditional IRA in 2017 and perform the back door roth as i originally intended? I don't see what good creating a new tradition IRA for this year would do. When a traditional IRA to Roth IRA conversion is done...
by FactualFran
Fri Nov 03, 2017 2:54 pm
Forum: Investing - Help with Personal Investments
Topic: How consistent will VNQ dividend be?
Replies: 65
Views: 3677

Re: How consistent will VNQ dividend be?

Here is a chart that shows the annual dividend increase/decrease: https://www.dividendinvestor.com/dividend-quote-new/?Symbol=VNQ As you can see, the only time the dividend decreased was from 2007-2010. Every other year saw an increase. For a longer history, back to 1997, open the URL for the inves...
by FactualFran
Fri Nov 03, 2017 2:42 pm
Forum: Investing - Help with Personal Investments
Topic: "Re-Recharacterize" Traditional to Roth
Replies: 12
Views: 688

Re: "Re-Recharacterize" Traditional to Roth

You likely cannot re-recharacterize. In order to recharacterize from a traditional IRA to a Roth IRA you need to meet the requirement for making a contribution directly to a Roth IRA. The fact that you did a backdoor Roth contribution indicates that you do not meet the requirements for making a cont...
by FactualFran
Thu Nov 02, 2017 6:48 pm
Forum: Investing - Help with Personal Investments
Topic: How consistent will VNQ dividend be?
Replies: 65
Views: 3677

Re: How consistent will VNQ dividend be?

The dividends of the fund have not been consistent from quarter-to-quarter. For the investor shares of the fund, during 2016 the four quarterly dividends per share were: $0.296, $0.243, $0.189, and $0.552. Someone who had an account in investor shares of the fund at the end of 2010 and the only tran...
by FactualFran
Mon Oct 30, 2017 4:52 pm
Forum: Personal Consumer Issues
Topic: Megabus from New York City to Washington DC
Replies: 23
Views: 1600

Re: Megabus from New York City to Washington DC

Never taken one myself, but several folks I know take them regularly. I know there are several, but I heard good things about vamoose https://www.vamoosebus.com/ Never heard of Vamoose but I'll look it up. Thanks. Check that Vamoose stops in DC where you want (you mentioned Union Station in DC in t...
by FactualFran
Fri Oct 27, 2017 5:11 pm
Forum: Investing - Theory, News & General
Topic: Withdrawal Rate Conundrum
Replies: 12
Views: 1408

Re: Withdrawal Rate Conundrum

Okay, so how do I calculate a SWR when real estate is part of the portfolio? If real estate is part of the portfolio, then money from it that is withdrawn from the portfolio is included when calculating the withdrawal rate from the portfolio. A SWR and an actual withdrawn rate are two different con...
by FactualFran
Fri Oct 27, 2017 4:58 pm
Forum: Personal Finance (Not Investing)
Topic: Tax Return - Back door conversion
Replies: 3
Views: 261

Re: Tax Return - Back door conversion

A Form 8606 needs to be filed when one makes a nondeductible contribution to a traditional IRA. Because you made a nondeductible contribution to a tradition IRA for 2016, you need to file a Form 8606 for 2016. You need to do that even though the contribution was made in 2017. Download https://www.ir...
by FactualFran
Fri Oct 27, 2017 3:30 pm
Forum: Investing - Help with Personal Investments
Topic: One Total Market Index Fund vs Three Different Cap Index Fund
Replies: 19
Views: 2005

Re: One Total Market Index Fund vs Three Different Cap Index Fund

There are likely a number of reasons why a portfolio of three market-size stock index funds have performed differently than a single total stock market index fund. Some other posts have mentioned that 30% large, 20% mid, 20% small differs from the large, mid, and small percentages within the single ...
by FactualFran
Thu Oct 26, 2017 3:15 pm
Forum: Investing - Theory, News & General
Topic: Withdrawal Rate Conundrum
Replies: 12
Views: 1408

Re: Withdrawal Rate Conundrum

The withdrawal rate from your investment portfolio is 3.96%. Social Security and annuities making payments are not investments. You control what you hold in your investment portfolio. You do not control what Social Security or an annuity provider holds.
by FactualFran
Wed Oct 18, 2017 6:25 pm
Forum: Personal Finance (Not Investing)
Topic: couple of questions regarding inflation and the 4% rule
Replies: 19
Views: 2144

Re: couple of questions regarding inflation and the 4% rule

Concerning Bengen's use of the average inflation rate of 3%, see the Appendix box on page 9 of the pdf (page 179 in the journal issue) that you provided a link to. For years after the ending year of the actual data, he used the average return of stocks (10.3%), average return of bonds (5.2%), and th...
by FactualFran
Wed Oct 18, 2017 3:00 pm
Forum: Personal Finance (Not Investing)
Topic: couple of questions regarding inflation and the 4% rule
Replies: 19
Views: 2144

Re: couple of questions regarding inflation and the 4% rule

I think that the most you can say is that the period studied by Bengen is from 1926-1994. Those are historical data and should be viewed as such. It's tempting to use officially published inflation values because it makes sense. However, he did not do that. The last sentence of the first section of...
by FactualFran
Tue Oct 17, 2017 4:24 pm
Forum: Investing - Theory, News & General
Topic: Vanguard's Global Wellesley Income and Global Wellington Funds in registration [now available]
Replies: 113
Views: 27155

Re: Vanguard's Global Wellesley Income and Global Wellington Funds in registration

Today (Oct. 17, 2017) Vanguard filed with the SEC a supplement to the previously filed prospectus for each of the new funds that each fund: "is holding a subscription period from October 18, 2017, through November 1, 2017. During this period, the Fund will invest in money market instruments rather t...
by FactualFran
Tue Oct 17, 2017 3:37 pm
Forum: Investing - Help with Personal Investments
Topic: Sell fund cost basis
Replies: 10
Views: 838

Re: Sell fund cost basis

When one uses Average Basis, the shares sold are the first shares in. That is, Average Basis forces FIFO. So there is Average Basis FIFO and Specific ID FIFO. There is also "I forgot to set the basis method" FIFO where one can choose at the time they fill out their tax return the basis method. Choo...
by FactualFran
Mon Oct 16, 2017 2:32 pm
Forum: Personal Finance (Not Investing)
Topic: ACA stay below 250% FPL for 2017?
Replies: 16
Views: 1434

Re: ACA stay below 250% FPL for 2017?

Is there any reason why I should still try to stay below 250% FPL for this year 2017 given the upheaval about CSR for 2018? In general, the lower your income the less the maximum premium payment. Going from just below 250% FPL to above it increases your maximum premium payment from being about 8.2%...
by FactualFran
Fri Oct 13, 2017 2:18 pm
Forum: Personal Finance (Not Investing)
Topic: Help me understand what happens with the new law and ACA subsidies
Replies: 80
Views: 6178

Re: Help me understand what happen with the new law and ACA subsidies

Help me understand what happen with the new law and ACA subsidies. My income is under 44k will I be affected? In another reply, rob65 wrote What was eliminated by the executive order was the cost sharing reduction that lowered deductibles, co-pays, and out-of-pocket maximums for Silver plans for pe...
by FactualFran
Wed Oct 04, 2017 5:51 pm
Forum: Investing - Theory, News & General
Topic: Sequence of returns and retirement
Replies: 8
Views: 1109

Re: Sequence of returns and retirement

Whether you are making sense depends on what you want to calculate. If you want to calculate what would have happened with 1966 as the starting year, then year 1 is 1966, year 2 is 1967, year 3 is 1968, and so on. 1966 as the starting year is a bad case scenario not only because of the return and in...
by FactualFran
Mon Sep 25, 2017 2:25 pm
Forum: Investing - Theory, News & General
Topic: VG wants everyone to transfer to a brokerage account?
Replies: 110
Views: 11785

Re: VG wants everyone to transfer to a brokerage account?

All the people who are completely unconcerned with reinvestment of dividends have probably never been confronted with Vg's IT method of treating wash sales which completely negates the use of specific ID cost basis I have never had a problem with Vg's IT method of anything. I have avoided making wa...
by FactualFran
Fri Sep 22, 2017 4:10 pm
Forum: Investing - Theory, News & General
Topic: VG wants everyone to transfer to a brokerage account?
Replies: 110
Views: 11785

Re: VG wants everyone to transfer to a brokerage account?

Having dividends reinvested in a taxable account is an accounting nightmare. Having those dividends reinvested in a separate account would be a nightmare squared. In my experience, it has not been a nightmare. For each mutual fund distribution that is reinvested in the same fund, I add one row to t...
by FactualFran
Thu Sep 21, 2017 2:25 pm
Forum: Investing - Theory, News & General
Topic: "Find out if your fund is declaring a quarterly dividend this month."
Replies: 17
Views: 3598

Re: VTSAX September 2017 Dividend date?

Looking at the Distribution web page for the fund about a minute ago, the most recent distribution of the fund was $0.253 per share with a Record Date of 09/20/2017, a Reinvestment Date of 09/21/2017, a Payable Date of 09/22/2017, and a not yet known Reinvestment Price.
by FactualFran
Wed Sep 20, 2017 4:42 pm
Forum: Investing - Help with Personal Investments
Topic: Vanguard total us dividend for Sept?
Replies: 10
Views: 1380

Re: Vanguard total us dividend for Sept?

or train yourself not to care. There is no evidence that I have seen that VG has ever failed to pay a quarterly or even a monthly dividend that was the norm for the fund/ETF? Are there that many people who depend on the dividend being delivered on say, 9/20 vs. 9/21 .....? A Vanguard fund that norm...
by FactualFran
Mon Sep 18, 2017 4:23 pm
Forum: Personal Consumer Issues
Topic: Transferring I Bonds to Son
Replies: 14
Views: 736

Re: Transferring I Bonds to Son

Here is a relevant quote from § 363.55 May I transfer my book-entry savings bonds to another person? (a) You may transfer a savings bond or a portion of a savings bond to the TreasuryDirect® account of another person in a minimum amount of $25. The transfer may only be made as a gift or in response ...
by FactualFran
Fri Sep 15, 2017 3:42 pm
Forum: Personal Finance (Not Investing)
Topic: Traditional IRA Deductions
Replies: 4
Views: 217

Re: Traditional IRA Deductions

According to the Limits if Covered by Employer Plan of IRS Publication 590-A, Contributions to Individual Retirement Arrangements (IRAs): "If either you or your spouse was covered by an employer retirement plan, you may be entitled to only a partial (reduced) deduction or no deduction at all, depend...
by FactualFran
Thu Sep 14, 2017 2:33 pm
Forum: Personal Finance (Not Investing)
Topic: Use IRS Direct Pay for estimated tax payments on irregular Roth conversions?
Replies: 19
Views: 1362

Re: Use IRS Direct Pay for estimated tax payments on irregular Roth conversions?

The answer to the question posed in the opening post: "Is this an acceptable (to the IRS) way of paying my estimated tax?" is maybe. After you file tax return for the year the IRS will check if the amount withheld (and only withheld, not including the estimated payments) was more than the income tax...
by FactualFran
Wed Sep 13, 2017 4:09 pm
Forum: Investing - Help with Personal Investments
Topic: Back-door Roth even if under limit?
Replies: 13
Views: 1046

Re: Back-door Roth even if under limit?

mega317 wrote:
Wed Sep 13, 2017 3:41 pm
How does this affect earnings?
It does not affect earnings. Perhaps, I don't understand what you mean by earnings.
by FactualFran
Wed Sep 13, 2017 3:29 pm
Forum: Investing - Help with Personal Investments
Topic: Back-door Roth even if under limit?
Replies: 13
Views: 1046

Re: Back-door Roth even if under limit?

Another, likely better, approach is: If your income for the year turns out to below the limit to have contributed to a Roth IRA, then recharacterize the contribution that was made earlier to a traditional IRA to a Roth, rather than doing a conversion to a Roth.
by FactualFran
Mon Sep 11, 2017 2:39 pm
Forum: Investing - Help with Personal Investments
Topic: first time CD through V Brokerage: any cautions?
Replies: 9
Views: 1324

Re: first time CD through V Brokerage: any cautions?

With a brokerage CD bought in the secondary market, you need to be aware than the quoted Yield to Maturity or Yield to Worst are calculated without including the commission that you may be charged on the transaction. Due to the commission, the yield for you will be less than the quoted yield. The lo...
by FactualFran
Mon Sep 11, 2017 1:50 pm
Forum: Investing - Theory, News & General
Topic: Vanguard Target Date 2015 vs Managed Payout - Is this a dumb question?
Replies: 10
Views: 2045

Re: Vanguard Target Date 2015 vs Managed Payout - Is this a dumb question?

This thing is paying out 5%/year and the balance is still increasing by 5%/year? Yes, the Vanguard Managed Payout fund has been paying out at least 5% on an investment made at the end of 2008. As of the end of 2016, the balance of the account would have been 5%/year greater than the balance at the ...
by FactualFran
Thu Sep 07, 2017 2:13 pm
Forum: Investing - Theory, News & General
Topic: Dividends and Withdrawal Rate
Replies: 39
Views: 3680

Re: Dividends and Withdrawal Rate

I understand that the "experts" categorize dividends as a withdrawal from your portfolio. But it just feels a lot safer than selling shares to fund withdrawals. I personally do not consider taking a 2% dividend as a 2% withdrawal from my portfolio. I suspect the "experts" would state it more carefu...
by FactualFran
Thu Sep 07, 2017 2:01 pm
Forum: Personal Finance (Not Investing)
Topic: Inherited Savings Bonds
Replies: 30
Views: 2037

Re: Inherited Savings Bonds

Interesting. So if the interest "should" have been reported in the year the bond matured, will the institution that cashes them now report interest income to the IRS? Yes, the institution that cashes Savings Bonds will issue a Form 1099. The institution will also ask for the Social Security Number ...
by FactualFran
Thu Sep 07, 2017 1:48 pm
Forum: Personal Finance (Not Investing)
Topic: Backdoor Roth. Is it listed on 1040 as IRA Distribution?
Replies: 51
Views: 2379

Re: Backdoor Roth. Is it listed on 1040 as IRA Distribution?

My concern is, errors are still there. He has simply changed the line that said taxable to zero from $5,500, admitting it was an error on his part, but still has the "$16,500" for the IRA distributions. Simply changing line 15b on Form 1040 sound questionable, as at least one other poster has point...
by FactualFran
Wed Sep 06, 2017 5:39 pm
Forum: Personal Finance (Not Investing)
Topic: Backdoor Roth. Is it listed on 1040 as IRA Distribution?
Replies: 51
Views: 2379

Re: Backdoor Roth. Is it listed on 1040 as IRA Distribution?

In the tax preparer's defense, (s)he may do a lot of business returns and yours is the only return that has a backdoor Roth. I wouldn't expect him to remember this from year to year. In fact, Bogleheads often report this same problem with their preparer. Their training/certification likely doesn't ...
by FactualFran
Wed Sep 06, 2017 5:09 pm
Forum: Personal Finance (Not Investing)
Topic: Inherited Savings Bonds
Replies: 30
Views: 2037

Re: Inherited Savings Bonds

My first question is will the Treasury even reissue savings bonds that have reached their maturity? No. Once they matured, the only option is to redeem the bonds. Also no to basis step-up. Also, the interest should have been reported on an income tax return for the year when the Savings Bonds matur...