Search found 2192 matches

by indexfundfan
Wed Oct 17, 2018 7:05 am
Forum: Personal Finance (Not Investing)
Topic: Ally Banking 1% extra back up to $1,000 on new money deposited
Replies: 118
Views: 8836

Re: Ally Banking 1% extra back up to $1,000 on new money deposited

Can anyone shed some light on the timing required to open an account? Here's what I did: 1) Yesterday I opened an account online: it just told me the application was submitted and I should hear back in 3-5 days. 2) Today I called to inquire about the status, and they told me I should lift my credit...
by indexfundfan
Tue Oct 16, 2018 10:21 am
Forum: Personal Finance (Not Investing)
Topic: Inflating AGI to avoid paying back ACA Premium Tax Credit
Replies: 26
Views: 1541

Re: Inflating AGI to avoid paying back ACA subsidies

Is the conversion deadline Dec 31st? Does the AGI increase correspond directly with the conversion amount? If I convert $100k, does AGI increase by $100k? Conversion deadline is 12/31. AGI is increased by the amount you converted unless you have made non-deductible IRA contributions in previous yea...
by indexfundfan
Tue Oct 16, 2018 9:36 am
Forum: Personal Finance (Not Investing)
Topic: Inflating AGI to avoid paying back ACA Premium Tax Credit
Replies: 26
Views: 1541

Re: Inflating AGI to avoid paying back ACA subsidies

By the way, harvesting tax gains or doing Roth conversions is better than not using the deductions that you are entitled to (though I don't know the answer to whether the deductions are elective or not). If you don't use the deductions, you lose them whereas harvesting tax gains or doing Roth conver...
by indexfundfan
Tue Oct 16, 2018 9:32 am
Forum: Personal Finance (Not Investing)
Topic: Inflating AGI to avoid paying back ACA Premium Tax Credit
Replies: 26
Views: 1541

Re: Inflating AGI to avoid paying back ACA subsidies

Yes, if you sell taxable holdings with gains, it will add on to the MAGI used for ACA. You can buy back the holding immediately if you like (no wash sale rules for gains).

Also, already mentioned, convert traditional to Roth IRA.
by indexfundfan
Sat Oct 13, 2018 12:13 pm
Forum: Investing - Theory, News & General
Topic: Timing of non-sweep MM fund sale to cover t-bill purchase
Replies: 4
Views: 272

Re: Timing of non-sweep MM fund sale to cover t-bill purchase

Yes it is a margin account and I agree everything settling Thursday should be fine based on reading my brokerages guidance. I had been selling the MM fund on Mondays but I will try selling Wednesdays and report back if anything unexpected happens. Yes, I always timed it that way at either Schwab or...
by indexfundfan
Fri Oct 12, 2018 12:17 pm
Forum: Personal Finance (Not Investing)
Topic: If I retire to a State that has no State taxes...
Replies: 46
Views: 7299

Re: If I retire to a State that has no State taxes...

If I move from North Carolina to Florida and sell some mutual funds after moving to Florida, then I don't have to pay North Carolina state tax on the capital gains from selling the mutual funds even though I lived in NC for part of the year. Is that correct? This is correct. You may have to report ...
by indexfundfan
Fri Oct 12, 2018 5:36 am
Forum: Investing - Theory, News & General
Topic: [Fidelity announces simplified index fund structure]
Replies: 20
Views: 2457

Re: [Fidelity announces simplified index fund structure]

I wish Fido would do the same for their money market funds.
by indexfundfan
Thu Oct 11, 2018 8:18 pm
Forum: Personal Finance (Not Investing)
Topic: If I retire to a State that has no State taxes...
Replies: 46
Views: 7299

Re: If I retire to a State that has no State taxes...

It depends on the state(s). You will likely owe some to your previous state prorated for the part of the year you lived there. It won't be prorated. If you are a part-year resident of a state, you owe tax to that state on all income you earned while a resident, and not at all on income earned while...
by indexfundfan
Thu Oct 11, 2018 9:37 am
Forum: Personal Finance (Not Investing)
Topic: Early Retirement - Timing and The ACA financials
Replies: 8
Views: 1070

Re: Early Retirement - Timing and The ACA financials

1. My vacation/PTO is added in every paycheck. There is no lump sum added after January 1. It will be paid out. There is no option to roll it into a 401k. When I left the previous company, paid-out PTO is considered "salary" and can be contributed to the 401(k), just like a regular paycheck. You ju...
by indexfundfan
Wed Oct 10, 2018 7:00 pm
Forum: Personal Finance (Not Investing)
Topic: Early Retirement - Timing and The ACA financials
Replies: 8
Views: 1070

Re: Early Retirement - Timing and The ACA financials

At my former employer, there are advantages to having the last day of work in the new year: o Paid out PTO can be put into the 401(k) o Employer paid for the whole calendar month of health insurance regardless of which day you stopped working o If you are collecting a package, these are paid in a ne...
by indexfundfan
Mon Oct 08, 2018 3:16 pm
Forum: Personal Finance (Not Investing)
Topic: Early withdrawal penalty on a CD. Is it a good way to reduce income?
Replies: 2
Views: 262

Re: Early withdrawal penalty on a CD. Is it a good way to reduce income?

As far as I know, the early withdrawal penalty on a CD does reduce your MAGI for ACA purposes. But have you explored all other options like: contribute to the Trad IRA, contribute to HSA, harvesting tax losses? See the following list for items that reduce your MAGI https://image.ibb.co/jedkDp/P20181...
by indexfundfan
Sun Oct 07, 2018 7:37 pm
Forum: Investing - Theory, News & General
Topic: Fidelity 1.8% money market fund with unlimited checkwriting and free ATMs
Replies: 23
Views: 2054

Re: Fidelity 1.8% money market fund with unlimited checkwriting and free ATMs

I am switching banks to get 1.8% on my checking account. With a Fidelity cash management account, you can put your savings/checking money into a government money market account currently getting 1.8% (minus ~.30% fees) and you get unlimited check writing and ATM use on all of your money, plus ATM f...
by indexfundfan
Sun Oct 07, 2018 7:33 pm
Forum: Investing - Theory, News & General
Topic: Fidelity 1.8% money market fund with unlimited checkwriting and free ATMs
Replies: 23
Views: 2054

Re: Fidelity 1.8% money market fund with unlimited checkwriting and free ATMs

The thing with the CMA is that you need to buy the MMF manually whenever there is a credit; otherwise the money goes into a FDIC-insured fund that pays peanuts. An option where you don't need to do this is the Merrill Edge CMA. You can make the BIF Money Fund your sweep fund, but the yield is a bit...
by indexfundfan
Sun Oct 07, 2018 7:25 pm
Forum: Investing - Theory, News & General
Topic: Fidelity 1.8% money market fund with unlimited checkwriting and free ATMs
Replies: 23
Views: 2054

Re: Fidelity 1.8% money market fund with unlimited checkwriting and free ATMs

Is it the "overdraft" feature of Cash Manager that will fund your bills by automatically pulling money from the higher interest earning MM fund? The FAQ on the Fidelity website don't provide much info on how that works. Now sure if it is called overdraft. But if you hold a MMF in the CMA, it will b...
by indexfundfan
Sun Oct 07, 2018 7:03 pm
Forum: Investing - Help with Personal Investments
Topic: Taxable - Would you switch from Vanguard to Fidelity (iShares ETFs) for $1000 a year?
Replies: 19
Views: 2256

Re: Taxable - Would you switch from Vanguard to Fidelity (iShares ETFs) for $1000 a year?

My apologies for the confusion. I certainly could have shortened this post and made things much more clear! My original post could be shortened to: --------------------------- Would you move your checking/investments from Ally+Vanguard to Fidelity, for these benefits, which you expect will net you ...
by indexfundfan
Sun Oct 07, 2018 6:52 pm
Forum: Investing - Theory, News & General
Topic: Fidelity 1.8% money market fund with unlimited checkwriting and free ATMs
Replies: 23
Views: 2054

Re: Fidelity 1.8% money market fund with unlimited checkwriting and free ATMs

The thing with the CMA is that you need to buy the MMF manually whenever there is a credit; otherwise the money goes into a FDIC-insured fund that pays peanuts.
by indexfundfan
Sat Oct 06, 2018 1:08 pm
Forum: Investing - Help with Personal Investments
Topic: Harvesting LTCG at 0% Rate and ACA MAGI
Replies: 4
Views: 366

Re: Harvesting LTCG at 0% Rate and ACA MAGI

At your MAGI level, even though the federal taxes for LTCG is 0%, harvesting LTCG is going to cost you about 10%. This is because the ACA subsidy you receive is reduced by 9.5% for every additional dollar of MAGI added.

You need to also consider state taxes to get the full tax cost.
by indexfundfan
Fri Oct 05, 2018 11:17 pm
Forum: Investing - Help with Personal Investments
Topic: Margin account for TLH
Replies: 8
Views: 615

Re: Margin account for TLH

I have a margin account. But even without margin, you should be able to sell one ETF, and immediately turn around to buy another ETF. Beware to read up on freeriding violations if you are selling unsettled purchases. But if your holding is "settled", then there should be no issues. On the other han...
by indexfundfan
Fri Oct 05, 2018 12:53 pm
Forum: Investing - Help with Personal Investments
Topic: Margin account for TLH
Replies: 8
Views: 615

Re: Margin account for TLH

I have a margin account. But even without margin, you should be able to sell one ETF, and immediately turn around to buy another ETF. Beware to read up on freeriding violations if you are selling unsettled purchases. But if your holding is "settled", then there should be no issues. On the other hand...
by indexfundfan
Thu Oct 04, 2018 12:53 pm
Forum: Investing - Help with Personal Investments
Topic: Settlement day (Columbus day)
Replies: 0
Views: 227

Settlement day (Columbus day)

Columbus day 10/8/18 Mon is not a settlement day for stock trades.

Does anyone know if I purchase a Vanguard mutual fund on Fri 10/5, would it settle on Mon or Tue?
by indexfundfan
Wed Oct 03, 2018 3:38 pm
Forum: Personal Finance (Not Investing)
Topic: Sold Home - 2 days after buyer claims they found an issue with A/C
Replies: 119
Views: 11730

Re: Sold Home - 2 days after buyer claims they found an issue with A/C

Did you pay for a home warranty? Sometimes a seller would pay for a home warranty as part of the contract.
by indexfundfan
Wed Oct 03, 2018 12:29 pm
Forum: Investing - Theory, News & General
Topic: Flattening yield curve
Replies: 55
Views: 4801

Re: FLATTENING YIELD CURVE

Long term treasuries getting hammered today. Should help some in "un-flattening" the yield curve. :-)
by indexfundfan
Wed Oct 03, 2018 6:28 am
Forum: Investing - Help with Personal Investments
Topic: Tax-efficient and Sanity-preserving California HSA Investment Strategy?
Replies: 8
Views: 672

Re: Tax-efficient and Sanity-preserving California HSA Investment Strategy?

My investigations have revealed that anyone can open an HSA (outside of their employer-sponsored plan) and move funds from the employer-sponsored HSA to the new HSA. Considering that I have about $11k in my PayFlex HSA, any suggestions on which HSA provider would give me the option to invest in tre...
by indexfundfan
Wed Oct 03, 2018 6:21 am
Forum: Investing - Help with Personal Investments
Topic: Exchanging within HSA taxable event or not?
Replies: 1
Views: 187

Re: Exchanging within HSA taxable event or not?

I'm looking to exchange within my HSA, from one fund to another (currently have two holdings; want to move to 1.) Is this considered a taxable event? I checked the Wiki, and looked online, but no luck. Thanks! No federal tax consequences. But you may owe state tax if you are in one of those states ...
by indexfundfan
Tue Oct 02, 2018 7:00 pm
Forum: Investing - Help with Personal Investments
Topic: Tax-efficient and Sanity-preserving California HSA Investment Strategy?
Replies: 8
Views: 672

Re: Tax-efficient and Sanity-preserving California HSA Investment Strategy?

Generally, the investment recommendation for a HSA in a state that taxes HSA earnings is to put the money into a treasury/TIP fund (since their income are state-tax free). But it looks like you don't have this option. The next best option is to pick a low-cost fund with the lowest tax drag. From you...
by indexfundfan
Mon Oct 01, 2018 5:02 pm
Forum: Investing - Help with Personal Investments
Topic: VUSXX equivalent at Schwab? [Vanguard Treasury Money Market Fund]
Replies: 1
Views: 220

Re: VUSXX equivalent at Schwab?

Schwab has a treasury MMF SNSXX

https://www.schwabfunds.com/public/csim ... mbol=SNSXX

But it's expense ratio is 0.35%, almost 4x that of VUSXX. I don't believe you can find another MMF that matches VUSXX on the Schwab platform.
by indexfundfan
Sat Sep 29, 2018 9:11 pm
Forum: Investing - Help with Personal Investments
Topic: I need a safe place to park $450k (pre-tax) until tax season--NY MMF or Treasury MMF?
Replies: 11
Views: 1425

Re: I need a safe place to park $450k (pre-tax) until tax season--NY MMF or Treasury MMF?

Which rate is the highest depends on your fed/state/city tax brackets: VMMXX 2.13% : You pay fed, state and city taxes. VUSXX 2.03% : You pay fed taxes only. VYFXX 1.40% : Pay no taxes. I suspect the best option could be VUSXX unless your fed bracket is 31% or higher. VUSXX is also the safest of all...
by indexfundfan
Thu Sep 27, 2018 11:36 am
Forum: Investing - Help with Personal Investments
Topic: Bond fund yields: Schwab vs Vanguard
Replies: 11
Views: 1169

Re: Bond fund yields: Schwab vs Vanguard

Schwab's tax exempt funds have significantly higher expense ratios compared to those from Vanguard (0.49% compared to 0.19%).
by indexfundfan
Mon Sep 24, 2018 7:16 pm
Forum: Investing - Help with Personal Investments
Topic: REIT ETFs in Taxable Account: To sell or not ?
Replies: 23
Views: 1765

Re: REIT ETFs in Taxable Account: To sell or not ?

Thanks for the comments, and for the spreadsheet link. I really don't have that many tax losses to use up. OTOH, I just realized that I have around a 7% embedded gain in VWEHX (Vanguard High Yield Corporate), with a 5.63% yield. With the smaller emebdded gain and the larger payout, this fund is my ...
by indexfundfan
Mon Sep 24, 2018 7:10 pm
Forum: Investing - Help with Personal Investments
Topic: REIT ETFs in Taxable Account: To sell or not ?
Replies: 23
Views: 1765

Re: REIT ETFs in Taxable Account: To sell or not ?

Just to put some numbers: if say you sell the REITs for $30k of gains this year, you have to pay taxes on this $30k of gains. Suppose the market drops next year and your harvested $30k of losses, you can only use $3k to offset against any income next year. It will take OP 10 years to "get back" the...
by indexfundfan
Mon Sep 24, 2018 2:33 pm
Forum: Personal Finance (Not Investing)
Topic: 2018 UTMA tax gain harvesting
Replies: 12
Views: 1191

Re: 2018 UTMA tax gain harvesting

Here's an article on Kiddie tax:

https://www.marketwatch.com/story/new-t ... 2018-09-24

It has the same interpretation as discussed: the first $4700 of LTCG or QDI has 0% fed tax rate (no earned income).
by indexfundfan
Mon Sep 24, 2018 2:04 pm
Forum: Investing - Help with Personal Investments
Topic: Help choosing Emerging Market Funds/ETFs
Replies: 8
Views: 919

Re: Help choosing Emerging Market Funds/ETFs

What is the best (cheapest, deepest, most liquid, most tax efficient) EM ETF available? This is for a taxable account. I use SCHE and VWO. Some notes: SCHE: a little more tax efficient in taxable account, a little cheaper than VWO, distributes dividends yearly VWO: more liquid, smaller bid/ask spre...
by indexfundfan
Mon Sep 24, 2018 1:59 pm
Forum: Investing - Help with Personal Investments
Topic: Help choosing Emerging Market Funds/ETFs
Replies: 8
Views: 919

Re: Help choosing Emerging Market Funds/ETFs

I wanted an EM tilt so I chose to start my Roth conversions into EM for now. I chose IEMG (iShares Core MSCI Emerging Markets ETF). It isn't Vanguard, but I liked it better. IEMG complements IEFA well since S Korea is included in IEMG and not in IEFA. Additional note: IEFA does not include Canada. ...
by indexfundfan
Sun Sep 23, 2018 11:11 pm
Forum: Investing - Help with Personal Investments
Topic: REIT ETFs in Taxable Account: To sell or not ?
Replies: 23
Views: 1765

Re: REIT ETFs in Taxable Account: To sell or not ?

Do you have kids? You can gift the shares to UTMA accounts. However, under the kiddie tax, the kids will pay taxes at a high rate if they sell too much of the ETF on their own. Yes, the 0% fed rate is limited to $4700 of LTCG per kid per year as I understand it (provided the kid has no other income...
by indexfundfan
Sun Sep 23, 2018 11:06 pm
Forum: Investing - Help with Personal Investments
Topic: REIT ETFs in Taxable Account: To sell or not ?
Replies: 23
Views: 1765

Re: REIT ETFs in Taxable Account: To sell or not ?

Do you think a market correction will occur within the next few years that will generate losses to offset the gains? Independent of the market timing issue, this isn't a reason to wait. If you switch and the market drops, you will have a large capital loss to harvest, and you will probably save mor...
by indexfundfan
Sun Sep 23, 2018 8:34 pm
Forum: Investing - Help with Personal Investments
Topic: How to set up direct deposit to Vanguard Prime Money Market?
Replies: 29
Views: 3267

Re: How to set up direct deposit to Vanguard Prime Money Market?

Fidelity did a nice job...because even though their 'core' funds are limited to government funds/FDIC accounts, they allow you to use any money market fund in your account as a source of cash for trades. Interesting. How does this work? Do you get to specify that a certain MMF can be used to settle...
by indexfundfan
Sun Sep 23, 2018 8:25 pm
Forum: Investing - Help with Personal Investments
Topic: REIT ETFs in Taxable Account: To sell or not ?
Replies: 23
Views: 1765

Re: REIT ETFs in Taxable Account: To sell or not ?

It's a tough choice, whether to take the hit now and move the REITs into the appropriate tax-efficient location. After you moved them into the tax-efficient location, you will save on taxes, but it will take many years to breakeven with your initial tax hit. Some random thoughts: Do you have any tax...
by indexfundfan
Sun Sep 23, 2018 8:15 pm
Forum: Investing - Help with Personal Investments
Topic: How to set up direct deposit to Vanguard Prime Money Market?
Replies: 29
Views: 3267

Re: How to set up direct deposit to Vanguard Prime Money Market?

We are lucky that at least Vanguard offers the Federal MMF as a sweep, which provides a reasonable yield. Most other brokerages took advantage of the situation and only offer a FDIC product for the sweep account. The interest rates offered on those FDIC products are miserable, typically like 0.25% o...
by indexfundfan
Sun Sep 23, 2018 8:08 pm
Forum: Investing - Help with Personal Investments
Topic: Transferring RSUs: Ing to Fidelity
Replies: 3
Views: 377

Re: Transferring RSUs: Ing to Fidelity

Submit the transfer request at Fidelity. Fidelity will take care of the transfer; you don't even need to contact Ing.

Fidelity does not any charge fee for the transfer but Ing may charge you an account transfer-out fee. This is typically $50 to $75 at many brokerages.
by indexfundfan
Sun Sep 23, 2018 7:48 pm
Forum: Investing - Help with Personal Investments
Topic: What is right place for MLPs in portfolios?
Replies: 12
Views: 747

Re: What is right place for MLPs in portfolios?

If you do hold them, I would not put them in a taxable account. I would guess the K-1 wouldn't be an issue in a tax deferred space. Hopefully someone more knowledgeable will chime in. MLP could result in taxable income in the IRA. Google for MLP UBTI IRA. There are ETF and CEF "wrappers" which allo...
by indexfundfan
Sat Sep 22, 2018 1:58 pm
Forum: Investing - Theory, News & General
Topic: Why do Schwab fund only pay distributions once a year?
Replies: 7
Views: 1111

Re: Why do Schwab fund only pay distributions once a year?

Schwab does annual distributions for their international funds. Vanguard used to do that too until a few years ago when it switched to the quarterly schedule. State Street and Blackrock both use semi-annual schedules for their international funds. I think having an annual distribution discourages in...
by indexfundfan
Fri Sep 21, 2018 10:15 am
Forum: Investing - Help with Personal Investments
Topic: Roth IRA, ETFs, and Settlement Funds
Replies: 3
Views: 240

Re: Roth IRA, ETFs, and Settlement Funds

I generally invest any remaining funds into the ETF which I can buy one whole share and leave any remaining money in the settlement fund. Vanguard's settlement fund pays a decent amount. In your case, if you like, you can purchase one share of SPTM. Afterall, VBS no longer charge commissions for ETF...
by indexfundfan
Fri Sep 21, 2018 10:03 am
Forum: Investing - Help with Personal Investments
Topic: HSA investment plan
Replies: 11
Views: 1138

Re: HSA investment plan

If you elect the investment option at Lively, your yearly fee is $30. $30 out of $1100 is a lot -- it is an expense of 2.7%. With $1100, unfortunately there are no good HSA custodial options for investing the money. How much do you think you should have in an HSA to make it worthwhile investing? Ma...
by indexfundfan
Thu Sep 20, 2018 6:59 pm
Forum: Investing - Help with Personal Investments
Topic: HSA investment plan
Replies: 11
Views: 1138

Re: HSA investment plan

If you elect the investment option at Lively, your yearly fee is $30. $30 out of $1100 is a lot -- it is an expense of 2.7%.

With $1100, unfortunately there are no good HSA custodial options for investing the money.
by indexfundfan
Thu Sep 20, 2018 8:38 am
Forum: Investing - Theory, News & General
Topic: Tax Reform - Revised Kiddie Tax
Replies: 57
Views: 7390

Re: Tax Reform - Revised Kiddie Tax

No, the capital gains that puts the total unearned income past $4700 should be taxed at the capital tax rate (15%) of the next bracket. $5200 - $4700 = $500 This is the same as the way standard tax brackets work. I really think you should wait until the relevant instructions are released in at leas...
by indexfundfan
Wed Sep 19, 2018 7:36 pm
Forum: Investing - Theory, News & General
Topic: The Final, Definitive Thread on Brokerage Transfer Bonuses
Replies: 1237
Views: 214048

Re: The Final, Definitive Thread on Brokerage Transfer Bonuses

Today I found out Merrill Edge has a $25k limit on daily withdrawal of settled cash when performed online (okay... have to call), and also a $50k daily limit on transferred in cash being made available (what?). Caveat emptor. Are other brokers equally ridiculous in setting limits? I know I've never...
by indexfundfan
Sun Sep 16, 2018 6:52 pm
Forum: Investing - Theory, News & General
Topic: 2017 Relative Tax Efficiency
Replies: 98
Views: 16301

Re: 2017 Relative Tax Efficiency

It's interesting that after plugging in numbers for my own situation for 2017, Schwab funds have lower tax costs compared to Vanguard in all the asset classes that I have in the taxable account: LargeCap: SCHX is better than VV SmallCap: SCHA is better than IJR and VB Developed: SCHF is better than ...
by indexfundfan
Sun Sep 16, 2018 6:34 pm
Forum: Investing - Theory, News & General
Topic: 2017 Relative Tax Efficiency
Replies: 98
Views: 16301

Re: 2017 Relative Tax Efficiency

The "tax efficiency" calculation here is different from M*. Perhaps, it can be called tax drag ratio :-)
by indexfundfan
Sun Sep 16, 2018 11:00 am
Forum: Investing - Help with Personal Investments
Topic: Best place for a small HSA
Replies: 9
Views: 823

Re: Best place for a small HSA

At Saturna, the inactivity fee is only $12.50/yr if you hold mutual funds. That's still quite a bit cheaper than Lively. You can also reinvest your dividends for free with mutual funds, whereas stocks cost $1 to reinvest dividends. Since you can buy Admiral class funds anyways, not sure why you'd w...
by indexfundfan
Sun Sep 16, 2018 10:52 am
Forum: Investing - Theory, News & General
Topic: 2017 Relative Tax Efficiency
Replies: 98
Views: 16301

Re: 2017 Relative Tax Efficiency

Thanks for collecting the data. Question: Doesn't the number in the "tax efficiency" row of the spreadsheet reflect the yearly "tax cost" of holding the fund? This got me confused because normally the higher the number for efficiency, the more desirable it is. In this case, it is the opposite -- the...