Search found 5966 matches

by David Jay
Fri Jan 18, 2019 10:17 pm
Forum: Personal Finance (Not Investing)
Topic: [Wash sale concern - Are these stocks substantially identical?]
Replies: 48
Views: 1546

Re: [Wash sale concern - Are these stocks substantially identical?]

You shifted the argument from a 401K to an IRA. A 401K is company sponsored, and in the event that one is not a majority stockholder in one’s employer, the 401K accounts are not controlled by the employee. The employer controls the fund offerings, how the plan costs are allocated and so on. In my c...
by David Jay
Fri Jan 18, 2019 8:47 pm
Forum: Personal Finance (Not Investing)
Topic: [Wash sale concern - Are these stocks substantially identical?]
Replies: 48
Views: 1546

Re: [Wash sale concern - Are these stocks substantially identical?]

Acquiring . The 401K sale and purchase is not for your account, it is for your employer’s account. You do not have actual possession of (acquire) anything in your 401K. That is the difference. The IRS and tax court have ruled that a taxpayer acquires stocks and securities purchased through corporat...
by David Jay
Fri Jan 18, 2019 1:32 pm
Forum: Personal Finance (Not Investing)
Topic: [Wash sale concern - Are these stocks substantially identical?]
Replies: 48
Views: 1546

Re: [Wash sale concern - Are these stocks substantially identical?]

Acquiring . The 401K sale and purchase is not for your account, it is for your employer’s account. You do not have actual possession of (acquire) anything in your 401K. That is the difference. The IRS and tax court have ruled that a taxpayer acquires stocks and securities purchased through corporat...
by David Jay
Fri Jan 18, 2019 9:40 am
Forum: Investing - Help with Personal Investments
Topic: Retire in 2 years. Advice for plan for withdrawals, Roth conversions & SS
Replies: 34
Views: 2497

Re: Retire in 2 years. Advice for plan for withdrawals, Roth conversions & SS

ObliviousInvestor wrote:
Fri Jan 18, 2019 9:06 am
This was a great explanation. :thumbsup :thumbsup
I’m honored...

(Oblivious Investor is Mike Piper, creator of opensocialsecurity.com)
by David Jay
Thu Jan 17, 2019 11:14 pm
Forum: Personal Finance (Not Investing)
Topic: [Wash sale concern - Are these stocks substantially identical?]
Replies: 48
Views: 1546

Re: [Wash sale concern - Are these stocks substantially identical?]

I think the burden of proof is on those who believe it is a wash sale, under the legal doctrine that “everything that is not forbidden is legal”. I don't know if the IRS follows that doctrine. Even if they did, the law (26 U.S. Code § 1091) has a blanket prohibition on acquiring substantially ident...
by David Jay
Thu Jan 17, 2019 8:40 pm
Forum: Investing - Theory, News & General
Topic: If Everyone Did The 3 Fund Vanguard Strategy, Would Vanguard Be Controlling US Companies?
Replies: 10
Views: 1364

Re: If Everyone Did The 3 Fund Vanguard Strategy, Would Vanguard Be Controlling US Companies?

What is behind your question? What assurances are you seeking?

Your hypotheticals (as others have noted) are completely unrealistic, so you must be trying to understand something but you may be uncomfortable just asking straight out???
by David Jay
Thu Jan 17, 2019 6:39 pm
Forum: Investing - Help with Personal Investments
Topic: Retire in 2 years. Advice for plan for withdrawals, Roth conversions & SS
Replies: 34
Views: 2497

Re: Retire in 2 years. Advice for plan for withdrawals, Roth conversions & SS

reddison wrote:
Thu Jan 17, 2019 6:33 pm
I think I get it now - Duh! It's a one time clock - not 5 years each time you convert. Right?
Bingo!

per person, of course (the “I” in IRA is for “individual”)
by David Jay
Thu Jan 17, 2019 6:16 pm
Forum: Investing - Help with Personal Investments
Topic: Retire in 2 years. Advice for plan for withdrawals, Roth conversions & SS
Replies: 34
Views: 2497

Re: Retire in 2 years. Advice for plan for withdrawals, Roth conversions & SS

SuzBanyon - Is there any reason I'd want to start Roth conversions now and pay 32% tax versus waiting until I'll be in a much lower tax bracket? I am not Suz, but I understand what she said about the 5 year clock: All withdrawals from Roth’s are tax free if you meet (2) criteria - that the owner is...
by David Jay
Thu Jan 17, 2019 5:09 pm
Forum: Investing - Help with Personal Investments
Topic: Retire in 2 years. Advice for plan for withdrawals, Roth conversions & SS
Replies: 34
Views: 2497

Re: Retire in 2 years. Advice for plan for withdrawals, Roth conversions & SS

3. SS – I have looked at the opensocialsecurity link, and it says the optimal is for my wife to start drawing at 62, and me at 70. I am just not sure that is best and we won’t really need that money per se. So I am thinking that we could wait until 70 for both, or maybe just start drawing for both ...
by David Jay
Thu Jan 17, 2019 3:33 pm
Forum: Personal Finance (Not Investing)
Topic: Social Security work only 1 quarter in a year
Replies: 6
Views: 661

Re: Social Security work only 1 quarter in a year

Short version: This year I will only have income in the 1st quarter. Now my question is for social security calculations is this still considered a full year income for my best earning 30 years? Short version: Yes Long version: I am currently on an expat contract in Switzerland and this will end by...
by David Jay
Thu Jan 17, 2019 2:16 pm
Forum: Personal Finance (Not Investing)
Topic: [Wash sale concern - Are these stocks substantially identical?]
Replies: 48
Views: 1546

Re: [Wash sale concern - Are these stocks substantially identical?]

FlyingHigh wrote:
Thu Jan 17, 2019 9:43 am
I plan on moving my Vanguard Trad IRA to my Fidelity 401K soon to allow me to do Backdoor ROTHs, that would also eliminate one of my VTIAX holdings.
Great idea!
by David Jay
Thu Jan 17, 2019 2:13 pm
Forum: Personal Finance (Not Investing)
Topic: [Wash sale concern - Are these stocks substantially identical?]
Replies: 48
Views: 1546

Re: [Wash sale concern - Are these stocks substantially identical?]

the transaction is not reported to any agency so no one can come after you. If the IRS audits you and asks for your 401k transactions, I imagine that you would need to comply. Likelihood of getting caught should not factor into how one fills out their tax return. We got into this before on another ...
by David Jay
Thu Jan 17, 2019 9:31 am
Forum: Personal Finance (Not Investing)
Topic: [Wash sale concern - Are these stocks substantially identical?]
Replies: 48
Views: 1546

Re: [Wash sale concern - Are these stocks substantially identical?]

My 401K at Fidelity... Your 401K does not have any bearing on wash sales. While there is no specific guidance from the IRS on 401K-as-wash-sale (and you would think there would be if it was a problem, after a few decades of 401K operation), your company’s 401K custodian does no reporting of individ...
by David Jay
Wed Jan 16, 2019 9:27 pm
Forum: Investing - Help with Personal Investments
Topic: Why is my fund balance lower than my cost basis?
Replies: 4
Views: 749

Re: Why is my fund balance lower than my cost basis?

Hi Travis, welcome to the forum. I purchased shares of Fidelity's S&P 500 Index fund (FXAIX) between May 2014 and December 2016 for an average price between $70 and $80. Today's share price is $90.76. Why is my current cost basis for this fund higher than the account balance? Thank you! If you purch...
by David Jay
Wed Jan 16, 2019 5:29 pm
Forum: Investing - Help with Personal Investments
Topic: TIRA Roth Conversion and Backdoor Roth IRA in the same year possible?
Replies: 2
Views: 125

Re: TIRA Roth Conversion and Backdoor Roth IRA in the same year possible?

azianbob wrote:
Wed Jan 16, 2019 5:26 pm
But does the TIRA balance have to be $0 as of current year end or prior year end?
At year end, so as long as you get it all done by 12/31/2019 you are golden.
by David Jay
Wed Jan 16, 2019 5:23 pm
Forum: Investing - Theory, News & General
Topic: John Bogle has died at age 89
Replies: 828
Views: 40905

Re: John Bogle, who founded Vanguard and revolutionized retirement savings, dies at 89

He could’a been a billionaire. Instead he made hundreds of thousands of us investors millionaires.
by David Jay
Wed Jan 16, 2019 12:10 pm
Forum: Investing - Theory, News & General
Topic: Vanguard will use blockchain to share index data
Replies: 69
Views: 8476

Re: Vanguard will use blockchain to share index data

How is this different from the basic cops and robbers game. New "cop strategy"... soon... new "robber strategy" to defeat it? There will always be ways to defeat the human element (think phishing emails), but the entire point of blockchain is that the technology is pretty darn secure (never say nev...
by David Jay
Wed Jan 16, 2019 10:01 am
Forum: Personal Finance (Not Investing)
Topic: Which Type of Annuities Did You Choose and Why
Replies: 18
Views: 1043

Re: Which Type of Annuities Did You Choose and Why

TravelforFun wrote:
Wed Jan 16, 2019 12:21 am
I'm meeting with an annuity advisor salesperson tomorrow
Fixed that for you.
by David Jay
Wed Jan 16, 2019 9:46 am
Forum: Personal Finance (Not Investing)
Topic: Which Type of Annuities Did You Choose and Why
Replies: 18
Views: 1043

Re: Which Type of Annuities Did You Choose and Why

... or possibly (very bad) a so-called " fixed indexed annuity ." Name change alert: The new name is: “ equity indexed annuity ”. Note that FINRA (the regulating agency) actually issued a warning about fixed index annuities - this is probably part of the reason for the name change. Wiki has this wa...
by David Jay
Wed Jan 16, 2019 9:02 am
Forum: Investing - Theory, News & General
Topic: When would you stop being a Boglehead?
Replies: 88
Views: 6548

Re: When would you stop being a Boglehead?

When would you stop being a Boglehead? When more than 50% of Active managers can beat their corresponding indexes per the SPIVA scorecard. I used to be a stock-picker and I would become one again if there were easily exploitable market mispricings (due to some unknown future financial industry chan...
by David Jay
Tue Jan 15, 2019 9:55 pm
Forum: Personal Finance (Not Investing)
Topic: My Withdrawal Strategy - Poke holes in it
Replies: 16
Views: 1693

Re: My Withdrawal Strategy - Poke holes in it

What is the point of a cash account? If you withdraw from it, you just have to move money from somewhere else to replenish it. As opposed to ? Keeping everything invested then just selling what you need ? What would you do in a bear market ? You have 40% bonds. Hold a couple of years of expenses in...
by David Jay
Tue Jan 15, 2019 9:44 pm
Forum: Investing - Theory, News & General
Topic: Cryptocurrency
Replies: 10
Views: 1091

Re: Cryptocurrency

Considering that crypto is based on blockchain technology, cryptos are the future. You need to separate the two to properly understand: 1. Blockchain is the future of secure transactions, see thread on Vanguard’s use of blockchain here: https://www.bogleheads.org/forum/viewtopic.php?t=234444 2. Cry...
by David Jay
Tue Jan 15, 2019 6:04 pm
Forum: Investing - Theory, News & General
Topic: IOTA the new crypto?
Replies: 9
Views: 623

Re: IOTA the new crypto?

It's a competing blockchain that does not want to be called a blockchain. It's single upside is there's no mining. It's downside is there's no point to it . George Gilder argues that blockchain is the future of secure transactions. Vanguard is evaluating blockchain for secure financial data transfe...
by David Jay
Tue Jan 15, 2019 5:35 pm
Forum: Investing - Theory, News & General
Topic: An Annuity Hater Revisits SPIAs
Replies: 22
Views: 2823

Re: An Annuity Hater Revisits SPIAs

Stormbringer wrote:
Tue Jan 15, 2019 5:17 pm
David Jay wrote:
Tue Jan 15, 2019 2:30 pm
Without going full CPI (which last I heard was only being issued by Principle), it is possible to build in some coverage with a fixed 2% or 3% escalator.

I priced a 2% for a 70 YO through the Fidelity website and I was pleasantly surprised.
AIG offers CPI adjustments too.
Cool!
by David Jay
Tue Jan 15, 2019 4:15 pm
Forum: Investing - Help with Personal Investments
Topic: Super Aggressive MF or ETFs?
Replies: 20
Views: 1097

Re: Super Aggressive MF or ETFs?

In general, Bogleheads are not the "super aggressive" type... :happy
by David Jay
Tue Jan 15, 2019 4:09 pm
Forum: Investing - Help with Personal Investments
Topic: Super Aggressive MF or ETFs?
Replies: 20
Views: 1097

Re: Super Aggressive MF or ETFs?

Welcome to the forum! Aside from AA (obviously 100% stocks is the most aggressive), nobody knows the future. At BH, we typically build our portfolios around broad based funds - as Jack Bogle says, instead of looking for the needle in the haystack, buy the haystack. There are a few markets that appea...
by David Jay
Tue Jan 15, 2019 3:59 pm
Forum: Investing - Help with Personal Investments
Topic: Vanguard Balanced Index Admiral vs LS Mod Growth>
Replies: 16
Views: 1050

Re: Vanguard Balanced Index Admiral vs LS Mod Growth>

I personally really like the LS funds. I have our Roth accounts in an LS fund. I have told my wife that if anything happens to me, dump everything (I have still 6 funds in my traditional IRA) into LS Moderate and let it ride.
by David Jay
Tue Jan 15, 2019 2:30 pm
Forum: Investing - Theory, News & General
Topic: An Annuity Hater Revisits SPIAs
Replies: 22
Views: 2823

Re: An Annuity Hater Revisits SPIAs

Without going full CPI (which last I heard was only being issued by Principle), it is possible to build in some coverage with a fixed 2% or 3% escalator.

I priced a 2% for a 70 YO through the Fidelity website and I was pleasantly surprised.
by David Jay
Mon Jan 14, 2019 11:35 pm
Forum: Investing - Theory, News & General
Topic: How to avoid temptation to buy hot stocks or bitcoin?
Replies: 63
Views: 4218

Re: How to avoid temptation to buy hot stocks or bitcoin?

wootwoot wrote:
Mon Jan 14, 2019 11:26 pm
Sounds like a good time for op to back up the truck and buy Bitcoin now. 80% off the high, buy low and sell high.
really not helpful...
by David Jay
Mon Jan 14, 2019 10:02 pm
Forum: Investing - Help with Personal Investments
Topic: I'm the noobiest noob
Replies: 16
Views: 1379

Re: I'm the noobiest noob

If you haven’t been through it, I recommend that you read Bill Bernstein’s “If You Can”, link to free PDF download here: https://www.etf.com/docs/IfYouCan.pdf
by David Jay
Mon Jan 14, 2019 9:52 pm
Forum: Investing - Help with Personal Investments
Topic: Retirement Portfolio Mix
Replies: 3
Views: 543

Re: Retirement Portfolio Mix

Everything you have done looks good. As long as you hold your expenses down to, say, $130,000 a year you should be in great shape. On your specific questions: 1. The funds are fine 2. The percentages are fine, a 40/60 is a good retirement portfolio 3. A reasonable alternative, but not needed. I thin...
by David Jay
Mon Jan 14, 2019 5:47 pm
Forum: Investing - Help with Personal Investments
Topic: Riskier 5 Year Investment Reco?
Replies: 5
Views: 360

Re: Riskier 5 Year Investment Reco?

I missed the Fidelity note. Check out their “Intermediate Term” bond funds (there is too much term risk with “long term” funds with a 5 year time frame). Then select the highest yielding bond fund holding only “investment grade” bonds. It will typically be holding corporate bonds, but the investment...
by David Jay
Mon Jan 14, 2019 5:30 pm
Forum: Investing - Help with Personal Investments
Topic: 401(k) rollover check for 8 cents. Can I ignore it?
Replies: 8
Views: 790

Re: 401(k) rollover check for 8 cents. Can I ignore it?

You probably need to record the amount, but it rounds to zero (you only need to enter whole dollars on your tax return).
by David Jay
Mon Jan 14, 2019 3:05 pm
Forum: Investing - Help with Personal Investments
Topic: One book for my neice, a young mom.
Replies: 20
Views: 1185

Re: One book for my neice, a young mom.

I have been looking for my "one book", and I think I am settling on Bernstein's " The Investor's Manifesto ". It covers some things overlooked by other books, including a chapter on behavioral economics and one on the financial services industry. I intend to recommend " If you can ", if they read th...
by David Jay
Mon Jan 14, 2019 11:26 am
Forum: Local Chapters and Bogleheads Community
Topic: Roll Call for the Retirement Class of 2019!
Replies: 160
Views: 20320

Re: Roll Call for the Retirement Class of 2019!

Vagabondette wrote:
Sun Jan 13, 2019 7:21 pm
I would post a pic of our truck but it doesn't look like I can. It's a beast! :D
You have to host the picture somewhere else (your dropbox, imgBB, etc.) and insert the link here.
by David Jay
Mon Jan 14, 2019 10:29 am
Forum: Investing - Help with Personal Investments
Topic: Retirement portfolio
Replies: 14
Views: 1388

Re: Retirement portfolio

I love the LS funds. My "Dear Darlene" letter suggests that she put her entire portfolio (all tax advantaged: tIRA and Roth) in one LS fund.
by David Jay
Mon Jan 14, 2019 10:25 am
Forum: Investing - Help with Personal Investments
Topic: Backdoor Roth IRA - Did I screw up?
Replies: 6
Views: 506

Re: Backdoor Roth IRA - Did I screw up?

Yes, I am afraid that you messed it up. You must pay taxes based on pro-rata basis as of December 31. So you will pay taxes on $5500 * (percentage of untaxed assets in all tIRA accounts) for 2018. Beginning in 2018, recharacterization is no longer allowed, so I do not see any way out. Worst case, yo...
by David Jay
Mon Jan 14, 2019 10:10 am
Forum: Investing - Help with Personal Investments
Topic: VTSMX in taxable and wanting to to Backdoor Roth?
Replies: 10
Views: 473

Re: VTSMX in taxable and wanting to to Backdoor Roth?

livesoft wrote:
Mon Jan 14, 2019 9:44 am
David Jay wrote:
Mon Jan 14, 2019 9:20 am
Here is a simple solution:
1. Sell VTSMX in taxable.
There would be almost no point in selling VTSMX in taxable...
I took it from the initial post that this holding was the source of the funds for the backdoor.
by David Jay
Mon Jan 14, 2019 9:20 am
Forum: Investing - Help with Personal Investments
Topic: VTSMX in taxable and wanting to to Backdoor Roth?
Replies: 10
Views: 473

Re: VTSMX in taxable and wanting to to Backdoor Roth?

Here is a simple solution:
1. Sell VTSMX in taxable.
2. Do a back-door and put the funds in something "substantially different" from VTSMX inside the new Roth.
3. After 31 days, move the Roth funds to VTSMX (you can exchange funds inside the Roth without incurring any tax liability).
by David Jay
Sun Jan 13, 2019 11:31 pm
Forum: Investing - Help with Personal Investments
Topic: Riskier 5 Year Investment Reco?
Replies: 5
Views: 360

Re: Riskier 5 Year Investment Reco?

The prevailing wisdom here on BH is that no money planned for use within 5 years should be in equities. May I suggest a moderately aggressive bond fund like Vanguard Intermediate Term Corporate (SEC yield 4.27% last time I checked).
by David Jay
Sun Jan 13, 2019 7:26 pm
Forum: Personal Consumer Issues
Topic: [Peter Jackson’s “They shall not grow old” - now showing Jan 21]
Replies: 52
Views: 6613

Re: Encore performance Jan. 21: Peter Jackson’s “They shall not grow old”

bhsince87 wrote:
Sun Jan 13, 2019 4:18 pm
Thanks for the heads up! It was sold out at every theater for miles around for the last showing.
Seats may be more available than Dec. 27, when a lot of folks were off work between the holidays.
by David Jay
Sun Jan 13, 2019 7:24 pm
Forum: Investing - Help with Personal Investments
Topic: I know market timing is a fool's game but...
Replies: 59
Views: 4688

Re: I know market timing is a fool's game but...

yeahman wrote:
Sun Jan 13, 2019 12:22 pm
Anyone else pausing contributions to equities or even reallocating existing money?
I hit a rebalancing band in December, so I bought equities.
by David Jay
Sun Jan 13, 2019 7:06 pm
Forum: Investing - Help with Personal Investments
Topic: Small cap tilting
Replies: 20
Views: 1192

Re: Small cap tilting

Understand that the base BH position is to own the market and accept market returns. From there, some “tilt” away from market return in the belief that a specific factor will outperform the market in the future. Here is my classic line about tilting your portfolio: “What is important about any "tilt...
by David Jay
Sun Jan 13, 2019 6:48 pm
Forum: Investing - Help with Personal Investments
Topic: What is best strategy: Harvest Dividends or Sell shares?
Replies: 3
Views: 483

Re: What is best strategy: Harvest Dividends or Sell shares?

Welcome to the forum. It was not clear to me: Are you withdrawing less than 2.5% or more than 2.5%? If your withdrawal rate (including taxes) is more than than 2.5%, then send the dividends to your checking account and occasionally sell a few shares to replenish the account. If your withdrawal rate ...
by David Jay
Sun Jan 13, 2019 3:23 pm
Forum: Personal Consumer Issues
Topic: [Peter Jackson’s “They shall not grow old” - now showing Jan 21]
Replies: 52
Views: 6613

Encore performance Jan. 21: Peter Jackson’s “They shall not grow old”

[Thread merged into here, see below. --admin LadyGeek] Return engagement! To paraphrase neurosphere’s TD fund statement: “ If you don’t know whether or not you should see this film, you should ” This is a magnificent film of World War One, using only period footage and photos/illustrations. Find a ...
by David Jay
Sat Jan 12, 2019 3:37 pm
Forum: Personal Consumer Issues
Topic: Anyone ever buy Hilton's Timeshares (HGVC)?
Replies: 51
Views: 9241

Re: Anyone ever buy Hilton's Timeshares (HGVC)?

burt wrote:
Wed Feb 24, 2016 8:47 pm
Timeshares are legal; right ? :D
So are equity-indexed annuities inside an IRA.
by David Jay
Sat Jan 12, 2019 2:06 pm
Forum: Investing - Help with Personal Investments
Topic: Roth 401k - directing payments to a different custodian
Replies: 4
Views: 214

Re: Roth 401k - directing payments to a different custodian

Ross:

Welcome to the forum!

Sorry, your issue may be a bit too esoteric to get an answer, but my post will “bump” your thread for the weekend crowd.
by David Jay
Sat Jan 12, 2019 10:04 am
Forum: Personal Finance (Not Investing)
Topic: Northwestern Mutual (65 Life) Whole Life Insurance Question
Replies: 31
Views: 6972

Re: Northwestern Mutual (65 Life) Whole Life Insurance Question

https://scontent.ffar1-1.fna.fbcdn.net/v/t1.15752-9/49787409_368753887008704_2881708470459957248_n.jpg?_nc_cat=100&_nc_ht=scontent.ffar1-1.fna&oh=8694582b66f660d6f4be79083a62bf55&oe=5CCC1083 I especially like the NWM salesperson’s “accessible” note on the cash value. Marvelous word choice: implies ...
by David Jay
Fri Jan 11, 2019 9:05 pm
Forum: Investing - Theory, News & General
Topic: Interesting FireCalc Results
Replies: 8
Views: 1732

Re: Interesting FireCalc Results

This is in keeping with most of the research. The issue is that, from a behavioral standpoint, many people can’t handle 70-80% in stocks.