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Dear Bogleheads, I created a large tax bill for ourselves by doing a Roth IRA conversion on my spouse's rollover IRA last year. We graduated to 24% federal rate and did a conversion for about 80k. I did the conversion based on an incorrect understanding that only gains will count towards income which I assumed our TLH will largely offset. Neither of those assumptions turned out to be correct. As a result of my stupidity, we have an extra 25k in federal and state taxes plus any penalties that we are unaware of. To be clear, we had no need to do the conversion at this time. I will be thankful for your response to the following questions: 1. Is there anything we can do to offset the taxes? 2. Is it worth paying a CPA to review this informatio...

Why are you buying the policy exactly? It's not clear to me. First of all, thank you--it's an honor to have responses here from White Coat Investor in addition to Stinky and other luminaries of this board. I appreciate your weighing in. Two scenarios for "why buy life insurance at all?" are are on my mind. Scenario 1 : I am concerned about what would happen if I were to pass away in the near term. In a simple-minded way, I suppose this is the classic reason for wanting life insurance for one's family. If I were to pass between, say, age 50 and age 60, then I would be leaving DW in a tricky spot. I work for outside compensation; DW does not. If I were to be hit by the proverbial bus this weekend, DW would have to make liquidation ...

Leesbro63 wrote: ↑Mon Mar 27, 2023 10:35 am It was suggested to me that my concern about TIPS in high tax bracket taxable accounts is really about something wise. And after thinking about it, I agree and decided to launch a new topic.

What does “if you have won the game, stop playing” actually look like? In particular, what does “stop playing” look like for the person with $10m+ in a taxable account and is in a 40% federal income tax bracket?

It's a general idea, like buy low, sell high. Of course it's a good idea in theory, but there is no definite thing that it means. But as a general rule, don't take risk you don't need to take.

Why are you buying the policy exactly? It's not clear to me. First of all, thank you--it's an honor to have responses here from White Coat Investor in addition to Stinky and other luminaries of this board. I appreciate your weighing in. Two scenarios for "why buy life insurance at all?" are are on my mind. Scenario 1 : I am concerned about what would happen if I were to pass away in the near term. In a simple-minded way, I suppose this is the classic reason for wanting life insurance for one's family. If I were to pass between, say, age 50 and age 60, then I would be leaving DW in a tricky spot. I work for outside compensation; DW does not. If I were to be hit by the proverbial bus this weekend, DW would have to make liquidation ...

Why are you buying the policy exactly? It's not clear to me. Can you just describe that because it feels like you think it should be obvious to the rest of us but it is not. What do want the whole life policy to do for you? I'm guessing you plan to have it be in your estate at death to somehow provide liquidity to pay the estate taxes? Is that right? Yes I am thinking of this as a very simple alternative approach. I think the guaranteed return vs the (variable) muni return might have sleep-at-night benefits for me but the added commission costs and the added complexity may not be worth it. Thank you--an elegant thought for sure. Or maybe you're viewing this as part of your investment portfolio to replace muni bonds? I'm really not sure what...

I bet you can go directly from a tax-deferred 457 to a Roth IRA (paying taxes of course). You can go directly from a tax-deferred 401k or 403b directly to a Roth IRA without stopping in a traditional IRA.

I used to use kayak.com to find airline tickets, but have noticed that the budget / gimmick pricing structure is getting pretty bad. For example, on Kayak there's a flight for $40 and it links to mytrip.com flying Avelo Air. After a Google search it looks like this is a bit of a scam. Frontier (which I've flown in the past) also has cheap flights, but their baggage fees seems to have gone way up and are now pretty outrageous. By the time I add basic options - 1 carry on and seat selection, the price is more than non-budget carriers. So any tips for finding decent priced flights, but not wasting a bunch of time? Which airlines would you recommend searching and which ones aren't worth the hassle? Also, any recommendations for finding a good ...

1. No way to do it tax-efficiently if you want it in TSM in 4-5 years. If you're open to other options you could consider 1031 exchanges into something managed by someone else, a 721 (upREIT) exchange into a REIT, or an opportunity zone fund.

2. The fastest reliable route to FIRE that I know of Is self-managed short term rentals. Reasonably leveraged long term rentals probably come in behind that followed by a standard Bogleheadish plan with an index fund portfolio and no leverage. You're moving from a faster route to a slower route. That's fine if it aligns with your goals and current level of wealth. It's certainly less work.

CletusCaddy wrote: ↑Thu Mar 23, 2023 5:52 pm A family of four survived a fall off a 250 cliff in a Model Y

https://www.nbcnews.com/news/amp/rcna64547

Buy the car

I went off a cliff in a 91 Geo Prizm. Held up fine. I mean, it was totaled, but all occupants survived without injury. We weren't 250 feet below the road though. More like 50.

Reminds me a bit of a point Bill Bernstein makes frequently.

You can have a big portfolio with a low future expected return or you can have a little portfolio with a high future expected return. It's really the same thing.

So instead of complaining about crummy future expected returns, rejoice that your portfolio is bigger than it should be. Glass half full and all that.

I am looking for a way to lock in high long term interest rates. iShares IBonds and Invesco Bulletshares only go out to 2032 right now. But VCLT has a duration of 13 years and is paying 5.5% How do I lock in this rate for 13 years? Do I hold VCLT with cash and just do a glide path (selling VCLT into cash) over 13 years? Are they high yet? They keep going up so it's hard for me to tell when they're high. But if you're sure they're high, you should buy Treasury Zeros and other long term bonds so you can benefit when rates stay high or go down. Just don't buy them if rates aren't done going up. And use that functional crystal ball of yours to open a hedge fund and invest my money for me. CDs are also a common way to "lock in rates" ...

As the title says. I'm wondering if it is ok to park cash that is designated for cash reserve in Vanguard VMFXX as I may need them in a couple of months. My Emergency Fund should be between 20K-30K and now I have about 40K. I may have some expenses coming in the next couple of months for property tax for rentals. That would be between 10K -15K. So I was thinking to park it in Vanguard VMFXX and earn some extra money by parking it there. Is it ok to put maybe 30K? Not really investing but when need it then pull it out. Some general questions. As interest is higher than my back. Should I keep a portion of the Emergency Funds in VMFXX in the current market? Is it okay if I park my car in my garage? Parking money is exactly what a money market...

VanGar+Goyle wrote: ↑Thu Mar 23, 2023 8:29 am

Mel Lindauer wrote: ↑Wed Mar 22, 2023 4:17 pm A reporter at a national newspaper would like to hear from investors who strategize to qualify for the 0% tax rate on capital gains and most dividends. Deadline: Monday March 27 EOD. email: Laura.Saunders@wsj.com.

Do these kind of media requests have to go through global moderators, or could any rag start quoting posts and replies on Bogleheads,
subject to the No Solicitation and Copyright policies?

Fair use doctrine would cover almost any use of something posted on this board by a reporter. But most reporters want quotes from non-anonymous people for their articles.

dknightd wrote: ↑Wed Mar 22, 2023 7:44 am Many years ago we spent some time snorkeling (mostly from shore) on the Cayman Islands. It was great! I'm not sure how it is today.
If you are taking a boat, I'd suggest getting a tourist divers license. Easy to do in a day. I'm not sure what they are called these days. Diving is different than snorkeling. And once you pay for the boat, it does not cost much more.
If you do not have one already, buy a mask that fits.

Edit: I think the "tourist divers license" is called the "resort course."

"Discover SCUBA"

Here's an example but most dive shops will do this. And it's way better than snorkeling.

https://www.scubadiveit.com/padi_discov ... iving.html

alfaspider wrote: ↑Tue Mar 21, 2023 2:27 pm

stoptothink wrote: ↑Tue Mar 21, 2023 1:54 pm

alfaspider wrote: ↑Tue Mar 21, 2023 1:12 pm Bumper plates are nice for deadlifts though even if not strictly needed.

Bumpers are nice for pulling, but you'll run out of room on the bar pretty quickly. You can usually fit about 450lbs. of bumpers on a standard 7' bar.

I guess it depends on how burly you are. I'm not at any risk of ever needing more than 450lbs for a regular workout

Yea, not a problem for me either. If I fill a bar with bumpers there is no lift I can do with it.

[Moved into a new thread from: Any Boglehead powerlifters? --admin LadyGeek] I'd be curious to hear what brand of bar and plates BH's have in their home gyms. I did deadlifts and power cleans regularly when I belonged to a gym, and am now looking to expand my home gym. Wonder if there's a happy medium between Rogue and a Dick's Sporting Goods 300 lb set? Went with Rogue style high end gear (bumper crossfit style). Think of it this way. What will you spend on a gym membership for years, especially when you consider the cost of commuting and your time to do it? I fit a workout in this morning in 16 minutes between breakfast and a meeting. Granted, I only did bench press and some back extensions, but that would have been a missed workout if I...

That being said, I visited Phoenix many times, always in fall ( including at Thanksgiving) and spring. To me is one of the most depressing places. Everything brown, no real vegetation, no outdoors at least half of the year. Even the water in the pool is hot in September. 1000% agree. Minnesota is beautiful. Green trees, beautiful lakes. Wonderful fall colors and spring flowers. Arizona is brown. Brown beats white for 4+ months a year. Arizona is an incredibly diverse place. Flagstaff, Sedona, Grand Canyon, Superstitions, Salt River Canyon, Cochise Stronghold, Yuma....all very different. At any rate, school typically goes September to May. September to May, Arizona beats Minnesota every time. But he should go get a summer job in Minnesota I...

t24b350 wrote: ↑Sun Mar 19, 2023 3:39 pm My son gets admissions from U. Minnesota (Twin Cities), SUNY Stony Brook and Arizona State, all in Computer Science.
Cost aside, which one is the best to attend?

Not in computer science, but they all appear similarly prestigious to me. I'd go to ASU though. Does he have any idea what Minneapolis is like in Winter?

I don't see how a push mower and a riding mower are both options. If your lawn is big enough, you NEED a big rider. If not, you don't want one. It'll just be a pain. But they shouldn't both be on your list.

If you can hire it out for $200 a month, you probably don't need a riding mower.

Hi, I am planning 4 days in Moab during Spring break with kids (11 and 13). Day 1- Arches National Park Day 2 - Canyonland National Park (Island of the Sky part) and Dead Horse Point State Park Day 3 - I am keeping reserve for spillover if we are not able to cover anything from Day 1 and 2 Question for Day 4: For the last day, what park should I cover ( I am staying Moab only so will have to drive). I have already covered Zion and Bryce before 1) Capitol Reef National Park - 2.5 hour from Moab 2) Monument Valley - 3 hours from Moab 3) Mesa Verde National Park - 2 hours from Moab 4) Goblin Valley State Park - 1.5 hours from Moab Any suggestions who have gone before with kids would be helpful. I'd do Goblin Valley with that itinerary. Wander...

Hi, I am planning 4 days in Moab during Spring break with kids (11 and 13). Day 1- Arches National Park Day 2 - Canyonland National Park (Island of the Sky part) and Dead Horse Point State Park Day 3 - I am keeping reserve for spillover if we are not able to cover anything from Day 1 and 2 Question for Day 4: For the last day, what park should I cover ( I am staying Moab only so will have to drive). I have already covered Zion and Bryce before 1) Capitol Reef National Park - 2.5 hour from Moab 2) Monument Valley - 3 hours from Moab 3) Mesa Verde National Park - 2 hours from Moab 4) Goblin Valley State Park - 1.5 hours from Moab Any suggestions who have gone before with kids would be helpful. I'd do Goblin Valley with that itinerary. Wander...

I recommend a rafting trip with someone like Moab Adventure Center [assuming everyone knows how to swim]. We did the all-day Westwater Canyon rafting in June. It was terrific! And your kids are at the right age. https://www.moabadventurecenter.com/moab-river-rafting Wouldn't the water be pretty chilly in April? Yes, it’s snowmelt. It’s cold. I remember rafting in the rain, and the rain coming out of the sky was warmer than the water in the river. But you’re not in the water, you’re on top of it. If they dump a bunch of day trippers in the water, they’ve done something wrong. Many places in the west, the river rafting is best in spring, because that’s when there’s actually water. Dumping a bunch of day trippers in the water in Westwater Can...

$27K? Most people can't remodel a kitchen for $27K. How do you possibly live in a medium/high COLA? Is that supposed to be $270K? $2.7M?

It's fine. The TSP C fund is a perfectly good S&P 500 index fund. Its returns mirror those of VOO and its peers.

Hi all, It seems like a big question - but I'm looking for resources. We started snorkeling a few years ago and would like to do more. We took a trip to Belize in December and were surprised to learn that there is a little more to picking a snorkeling trip than I realized. In Belize, I did not realize there would not be any beach snorkeling, and we would have to plan for boat trips. Boat trips are great - I need to be able to budget for them. I've done some internet searches but haven't found a solid resource that describes locations, the best time of year, accessibility of beach snorkeling, boat trip required, etc. Can anyone recommend resources for snorkeling information? I will research places in detail. But a higher level view would be...

The combined invested amounts of these funds as of February 28, 2023 is $311 billion. If chasing dividend investments is truly not rational, why is so much money invested in pursuit of it by otherwise rational investors? There's $535 billion invested in Bitcoin right now. Not to get into a battle of statistics but there is what, $100 trillion in global stock market cap and VG has about 3% of that total, so if the amount invested in dividend strategies globally could be about $10 trillion. It may be larger, given the ex-US markets preference for dividends. The point is sufficient to say that massive amounts of money are invested in dividend strategies globally and I am interested in understanding the reasons why, without labeling those who ...

Redlee wrote: ↑Sat Mar 18, 2023 1:16 am Vanguard and Fidelity are popular with Bogleheads and for good reason. But which firm would be in third place after them? If they closed tomorrow, where would you move to?

This would be for a "three fund" style portfolio of ETF's but with access to the most popular tax-loss-harvesting pairings. So access to those at low or no cost would be a priority.

The one that comes to mind is Charles Schwab. But is there something better?

Blackrock (iShares) for funds (ETFs) and Schwab for brokerage services. I would be very comfortable with an all iShares portfolio held at Schwab.

OverseasBH wrote: ↑Mon Mar 20, 2023 2:56 am
The combined invested amounts of these funds as of February 28, 2023 is $311 billion. If chasing dividend investments is truly not rational, why is so much money invested in pursuit of it by otherwise rational investors?

There's $535 billion invested in Bitcoin right now.

gfirero wrote: ↑Mon Mar 20, 2023 10:57 pm Little Wild Horse is a blast and very close to Goblin Valley. Avoid if rain is in the forecast due to flash floods.

It's close like my living room is close to my house.

Seems like a great asset class to trust the boring old stodgy providers with excellent long term records. I use Vanguard Federal and Vanguard Municipal. Their yields are always at or near the top, I already have accounts there, and they have a long track record of putting investors first.

Rex66 wrote: ↑Mon Mar 20, 2023 9:26 am The interest rate is not guaranteed to be a wash and with WL rarely is.

Additionally historically companies with non direct recognition and better “loan deals” pay lower dividends. There is no free lunch that you found a magic company.

Depends on the policy I believe. I agree that most policies don't give you that guarantee. It really matters what policy you get if you want to do this.

I also agree that you probably get lower dividends on a non-direct recognition policy. But you still should get one if you're going to IB/BOY.

I'm trying to plan a family vacation in August, as we are limited to when everyone can go. I'd like to visit several of Utah's National parks, but wondering how the temperatures/weather in August would be. Too hot for hiking? Too crowded? If so, I may choose another destination and keep Utah on the bucket list for a future visit. What has been your experience(s)? Yes. Yes. It will be too hot and too crowded. So if you want to come, plan to be crowded and plan to be hot. Some hikes are cooler than others (the Narrows for instance is walking up a river) and Bryce Canyon is at 10,000 feet. You're less likely to die of heatstroke on a short hike. Some hikes are less crowded than others (but there are none listed on this forum that are not abso...

Most people in this thread are talking about whole life insurance in general. And I agree with their comments for the most part. It does not appear that most of them actually understand the IBC/BOY/LEAP concept you're looking into. Obviously YOU need to understand it completely before buying a policy (assuming you still want to do it after you understand it). Any whole life policy is like getting married: til death do you part or it will cost you a lot of money to get out of it. So do extensive due diligence prior to purchasing. Most people regret their purchase. 80% of whole life policies are surrendered before death per LIMRA. For the benefit of those who don't understand IB/BOY etc. here is how it works. You buy a whole life (not IUL, VU...

Hi, I am planning 4 days in Moab during Spring break with kids (11 and 13). Day 1- Arches National Park Day 2 - Canyonland National Park (Island of the Sky part) and Dead Horse Point State Park Day 3 - I am keeping reserve for spillover if we are not able to cover anything from Day 1 and 2 Question for Day 4: For the last day, what park should I cover ( I am staying Moab only so will have to drive). I have already covered Zion and Bryce before 1) Capitol Reef National Park - 2.5 hour from Moab 2) Monument Valley - 3 hours from Moab 3) Mesa Verde National Park - 2 hours from Moab 4) Goblin Valley State Park - 1.5 hours from Moab Any suggestions who have gone before with kids would be helpful. I'd do Goblin Valley with that itinerary. Wander...

doobiedoo wrote: ↑Sun Mar 19, 2023 8:08 pm I recommend a rafting trip with someone like Moab Adventure Center [assuming everyone knows how to swim].
We did the all-day Westwater Canyon rafting in June. It was terrific! And your kids are at the right age.

https://www.moabadventurecenter.com/moab-river-rafting

In April? Really? Better get them drysuits.

I'd beware of Westwater this June too after our big snow year. Westwater between 13,000 and 20,000 CFS is no joke. What's really fun at 3,000 CFS is scary at 9,000 CFS and terrifying at 15,000 CFS. Right now it's running at 2000-3000, but it probably won't be back there until July this year.

Hello all, I'm a rookie to the forum and was directed here by a friend given my newfound intrigue with the Infinite Banking Concept. Please don't execute me for the very mention of whole life! I realize there is some strong emotion on the subject..... I am simply interested in the concept and the WHY behind dismissive or supportive opinions. This is not a request for individualized counsel, but simply to provide a bit of context as to the lens I am looking through; I am 44 yo with a family of 6, transitioning to a new career as I speak. I do not come from money and do not expect any large inheritances or windfalls. I am debt free minus a low interest mortgage and have made reasonable progress towards retirement savings, but am not sitting ...

Hi Bogleheads, My taxable account managed by my former financial advisor has two real estate funds, REET and DFGEX. I read in “The Four Pillars of Investing” and a book by Rob Berger that REIT’s can generate lots of taxes. Should I consider selling them? An unrelated question: Do any of you use microcap funds, or do you think a small cap value fund is sufficient? Brooke Be aware there was no 199A deduction when The Four PIllars of Investing was first published. REITs are slightly more tax efficient than they used to be. Some of their distributions are "return of principal" (basically this is how REITS pass depreciation on to you). Bottom line: They're not as tax-inefficient as a lot of Bogleheads think. Certainly you shouldn't mo...

roguewarrior0 wrote: ↑Sun Mar 22, 2020 4:23 pm Sorry for newbie question, I have been checking the forum and saw conflicting information.

• Ultimately, is VMFXX (Vanguard Federal Money Market aka Vanguad Settlement Funds) safe?

I define safe not based whether the return can go up or down but rather the risk that what I think is in cash (Vanguard settlement) will still be there at the end of this.

FDIC means to me that if the bank goes belly up, I still get my money up to $250k. VMFXX is in short-term government rates so does that mean I am basically ok if US doesn't default on national debt? So is my risk really that US doesn't fund come to a budget agreement and defaults?

If this is a risk you're worried about, I'm curious how you sleep at night owning stocks.

There are lots of ways to invest in real estate without being the classic landlord. Why not share those while also mentioning it? I feel like I have ad nauseum and I'm not allowed to post links to my website where I have also explained this many, many times. Briefly, there is a spectrum ranging from ground up construction to a mutual fund of publicly traded REITS. As you move along the spectrum, you will require less expertise, acquire more liquidity, and reduce hassle. You probably also reduce control, tax benefits, and rate of return. Ground up construction ---> Fix and Flip ----> Short Term Rentals without a manager-----> Long Term Rentals without a manager --------> Short Term Rentals with a manager ----> Long term rentals with a manag...

Hello, brand new here so please go easy :D I have over $300K sitting in a BOA savings account earning just piddly interest. What would you recommend I do to have my money work better for me? Does BOA have other accounts I should look at? I'd also like the account to be somewhat liquid as I deposit and withdraw frequently. Thanks Step 1: Move it to somewhere that will pay you interest. Best choice today is probably the Vanguard Federal Money Market Fund. You can link it to your BOA checking account and move money back and forth easily by putting in buy/sell orders on the Vanguard website. Allow 1-3 business days to move money back and forth. Step 2: Figure out what you actually want to do with this money. If a portion of it is for retiremen...

Activesloth wrote: ↑Fri Mar 17, 2023 1:50 am Vanguard’s money market funds pay 4.5%. It would take just a few minutes to wire your money if you have a Vanguard account.

You don't even have to wire. You just buy using funds in the Ally account. Very easy. I've used both over the years. Sometimes Ally pays more. Sometimes Vanguard. Sometimes it makes sense to be in the municipal MMF. Sometimes it doesn't.

saver7007 wrote: ↑Thu Mar 16, 2023 10:43 pm It's easy to see the benefit of inflation protection for holders of TIPS and I Bonds, but what is the benefit to the government and to taxpayers for offering to cover the cost of future inflation? I can't figure it out, it appears one-sided. Also seeing that corporations don't generally issue inflation-indexed bonds makes me suspect they are probably not a great deal for issuers, but there must be some rationale for them.

If inflation is lower than expected or as expected, the government gets to borrow for less than it otherwise would have.

There are lots of ways to invest in real estate without being the classic landlord.

Hello! I'm a new federal government employee and am considering allocating the entirety of my bond allocation to the G Fund. My rationale is that the G fund is zero risk and so this would let me tweak the remainder of my portfolio towards riskier investments, while keeping my overall risk the same. Both my spouse and I are in our mid 40s and we have one child in elementary school. The total portfolio amount is mid six figures. Some questions: 1. Is this plan reasonable or do you think that there is a better way to proceed? 2. My existing allocation is 60/40. How far can I modify this while keeping the overall risk the same - 65/35, 70/30, 75/25? I'm not sure how I would go about calculating this. I did search the forum - although there is ...

neurosphere wrote: ↑Fri Mar 17, 2023 1:24 pm

The summary is that 8606 never says Roth conversions are not distributions. It's simply separating taxable and non-taxable Roth conversions from many other types of non-taxable distributions (non-taxable rollovers, QCD, HSA contributions, etc) to comes to the correct tax. This is made explicit on line 13 by "all your distributions", which included the previously separated Roth "contributions" from line 8.

Thanks. Classic IRS.

Put up a mine field sign like this one:

https://www.dreamstime.com/illustration ... -sign.html

Should do the trick and maybe get a laugh.

Hello! I'm a new federal government employee and am considering allocating the entirety of my bond allocation to the G Fund. My rationale is that the G fund is zero risk and so this would let me tweak the remainder of my portfolio towards riskier investments, while keeping my overall risk the same. Both my spouse and I are in our mid 40s and we have one child in elementary school. The total portfolio amount is mid six figures. Some questions: 1. Is this plan reasonable or do you think that there is a better way to proceed? 2. My existing allocation is 60/40. How far can I modify this while keeping the overall risk the same - 65/35, 70/30, 75/25? I'm not sure how I would go about calculating this. I did search the forum - although there is ...

My parents have a revocable trust setup decades ago to protect some assets and use them in retirement. It’s now looking like those assets will not be touched at all, as my parents have plenty of savings from other sources. So now I am tasked with optimizing the portfolio in preparation that it gets inherited by myself and my siblings (outlined by the trust already). Since the trust is revocable, the taxes would flow through to my parents who have very little income, so it seems beneficial to skew the portfolio to bond funds with a bit of equity, and to keep the assets in my parents name to take advantage of their low tax rate. Am I missing anything? I know I’m not providing hard numbers here but generally speaking knowing that a) this revo...

Elysium wrote: ↑Wed Mar 01, 2023 10:22 am I don't understand why people on this forum pay so much attention to this failed stock picker. While most of the other gurus and experts gets trashed here, how come Buffett gets not only a pass but such reverence despite his abysmal record in stock picking over the last two decades.
They would've been better off investing in S&P 500 instead of all this sound & fury.

Because he tells people to invest in index funds instead of with him.

You have malpractice insurance but not disability insurance? That seems problematic.

Seems weird to be saving for your kids' education before paying for your own too.

And 31/35 isn't late for someone who buys malpractice insurance.