Search found 145 matches

by CRTR
Sat Nov 17, 2018 9:31 pm
Forum: Investing - Help with Personal Investments
Topic: Perform 12% Roth conversions or realize 0% long term capital gains during low income years???
Replies: 11
Views: 583

Re: Perform 12% Roth conversions or realize 0% long term capital gains during low income years???

OP, 1) Why pay 12% tax when you can pay 0%? 2) Your taxable is significantly larger than your tax-deferred account. So, you should have plenty of opportunities to do Roth conversion later. KlangFool +1 I guess the devil is in the details and depends on how long you will work/have income. I am retir...
by CRTR
Sat Nov 17, 2018 2:20 am
Forum: Investing - Help with Personal Investments
Topic: WOW - big Vanguard capital gains distribution coming this year
Replies: 6
Views: 1975

Re: WOW - big Vanguard capital gains distribution coming this year

Mid-cap Growth Index fund, for example, (VMGIX) has a 23% turnover rate. I'll be curious to see what the mid-cap growth index fund generates in capital gains this year. Mid-cap growth index fund has an ETF share class VOT, and through VOT low-basis stock shares can be purged by transfer to its Auth...
by CRTR
Sat Nov 17, 2018 2:19 am
Forum: Investing - Help with Personal Investments
Topic: WOW - big Vanguard capital gains distribution coming this year
Replies: 6
Views: 1975

Re: WOW! Vanguard Capital Opportunity capital gains distribution!

...why the big distribution?? Because the companies owned by the fund may have big distributions or the fund managers may take capital gains when some companies are over-represented in the fund (ie, grow faster than other companies). The fund is top-heavy in technology (33%) and healthcare (30%) wh...
by CRTR
Sat Nov 17, 2018 12:18 am
Forum: Investing - Help with Personal Investments
Topic: WOW - big Vanguard capital gains distribution coming this year
Replies: 6
Views: 1975

Re: WOW! Vanguard Capital Opportunity capital gains distribution!

I think people with investments in a closed fund like Capital Opportunity are unlikely to redeem shares since they are warned that they can't buy them back ($25K limit per year, for existing shareholders). And I suspect that most people who own it, have it in a tax-advantaged account. Note that por...
by CRTR
Fri Nov 16, 2018 11:28 pm
Forum: Investing - Help with Personal Investments
Topic: WOW - big Vanguard capital gains distribution coming this year
Replies: 6
Views: 1975

WOW - big Vanguard capital gains distribution coming this year

I was bored and looking through the Preliminary year-end distributions report from Vanguard. First thing I noticed was the the Capital Opportunities Fund (VHCOX) is going to have a 8.96% of NAV distribution. Ouch! Hope people that own it do so in a tax-advantaged account. In fact, a lot of actively ...
by CRTR
Mon Nov 12, 2018 12:52 pm
Forum: Investing - Help with Personal Investments
Topic: Creating a Bridge to Social Security
Replies: 11
Views: 867

Re: Creating a Bridge to Social Security

Money market, Treasuries, CDs or a SPIA are the usual candidates. At current rates, CDs are the winner. 3 & 4 year new issue CDs are widely available at over 3.25%. 2 years >3.0%. I don't think Treasuries are over 3% yet until you get to 5 years. 5 year term certain SPIA rates are lagging right now ...
by CRTR
Sun Nov 11, 2018 1:15 am
Forum: Investing - Help with Personal Investments
Topic: Help me make a fund recommendation for a family trust
Replies: 9
Views: 828

Re: Help me make a fund recommendation for a family trust

It is a difficult situation you've put yourself in. I'm not sure I really understand the trust situation. For example, who is the trustee?? The trustee(s), I believe, have a fiduciary responsibility to the income beneficiary first and foremost but also a duty to preserve the principal for the remain...
by CRTR
Fri Nov 09, 2018 12:30 pm
Forum: Investing - Help with Personal Investments
Topic: Automatic withdrawal with Vanguard
Replies: 24
Views: 1776

Re: Automatic withdrawal with Vanguard

The new money market fund rules adopted in 2014 severely curtailed the freedom of financial institutions to sweep money into and out of money market funds. https://www.occ.treas.gov/news-issuances/bulletins/2016/bulletin-2016-17.html In this case, because the prime money market fund holds commercia...
by CRTR
Fri Nov 09, 2018 10:25 am
Forum: Investing - Help with Personal Investments
Topic: Automatic withdrawal with Vanguard
Replies: 24
Views: 1776

Re: Automatic withdrawal with Vanguard

For reasons neither she nor her colleagues could explain, automatic redemptions/withdrawals are allowed across accounts but not within a single one. The new money market fund rules adopted in 2014 severely curtailed the freedom of financial institutions to sweep money into and out of money market f...
by CRTR
Fri Nov 09, 2018 12:08 am
Forum: Investing - Help with Personal Investments
Topic: Automatic withdrawal with Vanguard
Replies: 24
Views: 1776

Re: Automatic withdrawal with Vanguard

For reasons neither she nor her colleagues could explain, automatic redemptions/withdrawals are allowed across accounts but not within a single one. The new money market fund rules adopted in 2014 severely curtailed the freedom of financial institutions to sweep money into and out of money market f...
by CRTR
Thu Nov 08, 2018 3:44 pm
Forum: Investing - Help with Personal Investments
Topic: Automatic withdrawal with Vanguard
Replies: 24
Views: 1776

Re: Automatic withdrawal with Vanguard

Are you looking in the right place? I have no issues in my brokerage Rollover or Roth IRAs. You can only do automatic transactions on Vanguard mutual funds, not ETFs even in a brokerage account. My Accounts > Account Maintenance > Automatic Investment I choose the destination and then the source (s...
by CRTR
Thu Nov 08, 2018 12:42 pm
Forum: Investing - Help with Personal Investments
Topic: Automatic withdrawal with Vanguard
Replies: 24
Views: 1776

Re: Automatic withdrawal with Vanguard

Are you looking in the right place? I have no issues in my brokerage Rollover or Roth IRAs. You can only do automatic transactions on Vanguard mutual funds, not ETFs even in a brokerage account. My Accounts > Account Maintenance > Automatic Investment I choose the destination and then the source (s...
by CRTR
Tue Nov 06, 2018 5:48 pm
Forum: Investing - Help with Personal Investments
Topic: Tax efficiency in retirement
Replies: 6
Views: 1291

Re: Tax efficiency in retirement

Well, for starters, most likely you're either in the 24% or 32% tax bracket in 2018 (assuming filing jointly). There is no 33% bracket currently. You question is a common one and a dilemma. You can never know for sure the right answer because you don't what future tax rates on retirement income sour...
by CRTR
Tue Nov 06, 2018 5:18 pm
Forum: Investing - Help with Personal Investments
Topic: 3.75% - 5-year CD
Replies: 13
Views: 3573

Re: 3.75% - 5-year CD

I'm going full tilt if/when 4%. Thought this is a noteworthy step though. I think the tendency for policy seems to be knee-jerk rate cuts. Cheap borrowing. Much easier to take a penalty if incorrect, and jump into a higher rate. Time to roll over a rung in Mom's CD ladder . . . . 4.08% APY Connexus...
by CRTR
Tue Nov 06, 2018 8:58 am
Forum: Investing - Help with Personal Investments
Topic: Percentage of small-caps in an aggressive portfolio
Replies: 17
Views: 920

Re: Percentage of small-caps in an aggressive portfolio

I am an outlier here. I went 100% small and mid cap, both domestic and international. I started saving in 1997 and benefited from not using any large/giant cap tilted funds (in contrast to the standard BH plan). I am NOT advocating this approach for everyone but do believe it deserves consideration....
by CRTR
Sun Oct 28, 2018 2:30 pm
Forum: Investing - Help with Personal Investments
Topic: setting up a cd ladder
Replies: 10
Views: 1495

Re: setting up a cd ladder

The devil is in the details. I 100% agree with the other posters re: Vanguard money market vs. the CD plan/options you list. Was wondering why such a short duration ladder? On the other hand, if you construct the ladder with a different set of CD, you will get a different answer. In my Mom's account...
by CRTR
Sun Oct 28, 2018 2:18 pm
Forum: Investing - Help with Personal Investments
Topic: TLH: Would selling VXUS and buying VEA:VWO create wash sale issue?
Replies: 12
Views: 656

Re: TLH: Would selling VXUS and buying VEA:VWO create wash sale issue?

no, you're fine in my opinion. If you want to go even simpler, you can buy IXUS. Different company (Vanguard vs Ishares) and each tracks a different index. IXUS is a bit more tax efficient I think too.
by CRTR
Sun Oct 28, 2018 1:54 pm
Forum: Investing - Help with Personal Investments
Topic: Another Tax Loss Harvesting Questions, from a beginner
Replies: 7
Views: 741

Re: Another Tax Loss Harvesting Questions, from a beginner

Thanks for the clarification. There's a lot going on in your portfolio. Some of the potential moves will have effects on others (see #3 below for ex). It would be behoove you to crunch the tax numbers of each anticipated move before you make them . . . . .OK, here are my thoughts, in no particular o...
by CRTR
Sat Oct 27, 2018 4:56 pm
Forum: Investing - Help with Personal Investments
Topic: Another Tax Loss Harvesting Questions, from a beginner
Replies: 7
Views: 741

Re: Another Tax Loss Harvesting Questions, from a beginner

I recently inherited about 100 individual stocks & bonds, often with low cost bases. Many of the bonds have been called. I have been selling the stocks as taxes allow, to buy Vanguard funds. That "low cost basis" doesn't seem right. An inherited stock should have had the cost basis reset to the val...
by CRTR
Fri Oct 26, 2018 5:58 pm
Forum: Investing - Help with Personal Investments
Topic: Better place to park funds - house downpayment
Replies: 5
Views: 724

Re: Better place to park funds - house downpayment

Suggestion: figure out roughly how much earnest money you'd probably need and make sure that's immediately available to your checking account. We are in a hot market, got a tip on a house that was about to be listed, got in early and would have written an offer on the spot, but had to wait a couple...
by CRTR
Thu Oct 25, 2018 6:13 pm
Forum: Personal Finance (Not Investing)
Topic: Elder care tax question(s)
Replies: 31
Views: 2018

Re: Elder care tax question(s)

I apologize since I did not read all of the responses closely. However have you consider signing your mom up for Medi-cal? It appears she qualifies for it and if that is the case, then you would not need to pay for all this. The only thing I do not know is if she can stay in the care facility she c...
by CRTR
Thu Oct 25, 2018 6:10 pm
Forum: Personal Finance (Not Investing)
Topic: Elder care tax question(s)
Replies: 31
Views: 2018

Re: Elder care tax question(s)

celia wrote: ↑
Tue Oct 16, 2018 1:36 pm
If you were to gift her the rental and you die before her, what kind of mess will you be leaving behind? Is your estate plan up to date?
It sure is. Answered above
by CRTR
Thu Oct 25, 2018 6:09 pm
Forum: Personal Finance (Not Investing)
Topic: Elder care tax question(s)
Replies: 31
Views: 2018

Re: Elder care tax question(s)

4. I own a rental property in Idaho. If I sign the title over to her (and file a gift tax return), the existing adjusted basis carries over to her (FMV ~$650k, ~$150K depreciation recapture, purchase price + improvements ~$410K). When she dies, I will inherit the property back and receive a step-up...
by CRTR
Thu Oct 25, 2018 6:08 pm
Forum: Personal Finance (Not Investing)
Topic: Elder care tax question(s)
Replies: 31
Views: 2018

Re: Elder care tax question(s)

If you were to gift her the rental and you die before her, what kind of mess will you be leaving behind? Is your estate plan up to date? A good point and it is. My executor is my childhood best friend and his son is secondary. The two main beneficiaries are local Humane society facilities and they ...
by CRTR
Thu Oct 25, 2018 11:40 am
Forum: Investing - Help with Personal Investments
Topic: fund "closed to new investors"
Replies: 3
Views: 546

Re: fund "closed to new investors"

Some firms allow one to purchase more of their closed Fund in another account if one already has it (PRIMECAP comes to mind), but that's not common. However, she can probably move some of the PRIDX by transferring it "IN KIND", rather than selling it and planning to purchase again. It might depend ...
by CRTR
Thu Oct 25, 2018 11:16 am
Forum: Investing - Help with Personal Investments
Topic: fund "closed to new investors"
Replies: 3
Views: 546

fund "closed to new investors"

A quick question. I'm sorry if this has been answered already on this forum but I couldn't find it . . . . My ex is inheriting a chunk of IRA money ($400k). She plans to open an Inherited IRA and use the life-expectancy method. She wishes to mirror her existing IRA investments (from her old 401k). S...
by CRTR
Sat Oct 13, 2018 4:56 pm
Forum: Personal Finance (Not Investing)
Topic: Obamacare premiums will be down an average of 1.5 percent next year
Replies: 39
Views: 4074

Re: Obamacare premiums will be down an average of 1.5 percent next year

No subsidy. I'm 57. It is for a Bronze plan with a $7500 deductible. The new monthly premium will be $887. It's a rough ride, for sure. I paid $303 with a $3300 deductible in 2013, before the ACA kicked in. In fairness, I did turn 55 in 2016. We'll be moving to Idaho in 2020. Out of curiosity, I ch...
by CRTR
Fri Oct 12, 2018 4:29 pm
Forum: Investing - Help with Personal Investments
Topic: Vanguard Flagship complimentary CFP services
Replies: 13
Views: 1484

Re: Vanguard Flagship complimentary CFP services

I used it about a year and a half ago. I wanted to get some thoughts/recommendations about my chosen AA and bond fund selection for my portfolio. Though, ultimately, I didn't use his recommendations, it was a great experience. We chatted for about 45 min and covered a bunch of topics. He offered som...
by CRTR
Fri Oct 12, 2018 10:20 am
Forum: Personal Finance (Not Investing)
Topic: Obamacare premiums will be down an average of 1.5 percent next year
Replies: 39
Views: 4074

Re: Obamacare premiums will be down an average of 1.5 percent next year

"Much of the drop is due to companies raising premiums too much in 2018, experts say, " https://www.nbcnews.com/politics/politics-news/obamacare-premiums-will-be-down-average-1-5-percent-next-n919051?cid=sm_npd_nn_fb_ma If it weren't so ridiculous, it would be funny. I just received a letter from H...
by CRTR
Fri Oct 12, 2018 12:05 am
Forum: Investing - Help with Personal Investments
Topic: WMCR - Invesco Wilshire Micro-Cap ETF
Replies: 13
Views: 914

Re: WMCR - Invesco Wilshire Micro-Cap ETF

Acquired Fund Fees and Expenses - AFFE: https://www.bogleheads.org/wiki/Acquired_fund_fees_and_expenses As for holding a microcap fund, I can only speak from my personal experience. In 20+ years of contributing to my 401k/IRA, I was always able to maintain my asset allocation by directing contributi...
by CRTR
Thu Oct 11, 2018 9:09 pm
Forum: Personal Finance (Not Investing)
Topic: Obamacare premiums will be down an average of 1.5 percent next year
Replies: 39
Views: 4074

Re: Obamacare premiums will be down an average of 1.5 percent next year

"Much of the drop is due to companies raising premiums too much in 2018, experts say, " https://www.nbcnews.com/politics/politics-news/obamacare-premiums-will-be-down-average-1-5-percent-next-n919051?cid=sm_npd_nn_fb_ma If it weren't so ridiculous, it would be funny. I just received a letter from H...
by CRTR
Wed Oct 10, 2018 4:35 pm
Forum: Personal Finance (Not Investing)
Topic: Elder care tax question(s)
Replies: 31
Views: 2018

Re: Elder care tax question(s)

Concerning the step transaction you clearly wrote in your OP that you are from the very beginning looking to give it to her and get a step up in basis on her death. 4. I own a rental property in Idaho. If I sign the title over to her (and file a gift tax return), the existing adjusted basis carries...
by CRTR
Wed Oct 10, 2018 1:55 pm
Forum: Personal Finance (Not Investing)
Topic: Elder care tax question(s)
Replies: 31
Views: 2018

Re: Elder care tax question(s)

... 1. Step Doctrine/House transfer. She stated it is has been a common practice among residents and family -- with estate planning attorney approval -- in the past. Hmmmm . . . .I kinda think it would be a Step Transaction. ... Wouldn't that depend on the facts? So, just got off the phone with the...
by CRTR
Wed Oct 10, 2018 1:09 pm
Forum: Personal Finance (Not Investing)
Topic: Elder care tax question(s)
Replies: 31
Views: 2018

Re: Elder care tax question(s)

When my mother was living in a CCRC, the facility provided a breakdown each year as to what portion of her monthly fee was a medical deduction for tax purposes. I would check with the facility. I doubt that the whole fee is deductible. When she was in the regular assisted living section, they used ...
by CRTR
Wed Oct 10, 2018 12:30 pm
Forum: Personal Finance (Not Investing)
Topic: Gifting Appreciated Stocks to Grandparent to pay Child's Private School Tuition
Replies: 127
Views: 8699

Re: Gifting Appreciated Stocks to Grandparent to pay Child's Private School Tuition

How about the grandparents pay the tuition using their own existing assets and SUBSEQUENTLY receive the the gifts from the parents? The grandparents now have the option to sell the stock now, at a later date, they could perform some TGH or not sell it at all . . . . You would have a hard time convin...
by CRTR
Wed Oct 10, 2018 8:54 am
Forum: Investing - Help with Personal Investments
Topic: Vanguard vs others
Replies: 27
Views: 1949

Re: Vanguard vs others

https://www.financial-planning.com/opin ... efficiency

A good read. Roth also makes the point that if using a taxable account and Fidelity raises fees down the road, you may be locked in due to capital gains exposure.
by CRTR
Wed Oct 10, 2018 8:40 am
Forum: Personal Finance (Not Investing)
Topic: New Car: No Collision/Comprehensive?
Replies: 52
Views: 4377

Re: New Car: No Collision/Comprehensive?

KEEP IT!! I was in an accident a few months ago. My car sustained ~$5000 in damage. I believed it was the other driver's fault. Her (USAA) insurance adjuster tried to blame me. My adjuster agreed with me. The two companies went back and forth and the most USAA would agree to was 50/50. Ultimately, t...
by CRTR
Wed Oct 10, 2018 8:27 am
Forum: Personal Finance (Not Investing)
Topic: Elder care tax question(s)
Replies: 31
Views: 2018

Re: Elder care tax question(s)

3. As I will be paying >$60k/year of her bills, do I have to file a gift tax return for the amount over $15k? Since no one else has said anything, here is a vague and not very comprehensive comment: I'm pretty sure I've read somewhere in IRS literature that anyone can pay anyone else's medical bill...
by CRTR
Wed Oct 10, 2018 8:24 am
Forum: Personal Finance (Not Investing)
Topic: Elder care tax question(s)
Replies: 31
Views: 2018

Re: Elder care tax question(s)

Might be a good idea to consult with an elder law attorney - they often pair with CPAs who can address tax considerations. http://www.nelf.org/find-a-cela/ Bubbacat Thanks for the link. Between Nate79's comment and some other estate questions too, looks like I'm going to need a lawyer or two after ...
by CRTR
Wed Oct 10, 2018 8:18 am
Forum: Personal Finance (Not Investing)
Topic: Elder care tax question(s)
Replies: 31
Views: 2018

Re: Elder care tax question(s)

You might want to start here: https://turbotax.intuit.com/tax-tips/family/steps-to-claiming-an-elderly-parent-as-a-dependent/L34jePeT9 That was perfect. So, if I gift her the rental unit, no declaring her as a dependent because her social security and the rental income will cover over 50% of her ex...
by CRTR
Wed Oct 10, 2018 8:08 am
Forum: Personal Finance (Not Investing)
Topic: Elder care tax question(s)
Replies: 31
Views: 2018

Re: Elder care tax question(s)

An older relative was able to deduct in-home care, as a medical expense. He had a written plan of care that was approved by his doctor, stating that the care was medically necessary. The caregiving agency wrote up the plan. I found IRS Publication 502, and showed it to to the CPA. He agreed the car...
by CRTR
Wed Oct 10, 2018 8:05 am
Forum: Personal Finance (Not Investing)
Topic: Elder care tax question(s)
Replies: 31
Views: 2018

Re: Elder care tax question(s)

#4 is an easy no. That is a clear step transaction as far as I'm aware. That's unfortunate because I planned to put the rental property in her name anyway. In effect, she's going to receive 100% of the rent proceeds plus some cash supplementation to cover her overhead anyway. Would have been nice t...
by CRTR
Wed Oct 10, 2018 8:01 am
Forum: Personal Finance (Not Investing)
Topic: Elder care tax question(s)
Replies: 31
Views: 2018

Re: Elder care tax question(s)

When my mother was living in a CCRC, the facility provided a breakdown each year as to what portion of her monthly fee was a medical deduction for tax purposes. I would check with the facility. I doubt that the whole fee is deductible. When she was in the regular assisted living section, they used ...
by CRTR
Tue Oct 09, 2018 6:36 pm
Forum: Investing - Help with Personal Investments
Topic: Calculating amount needed for SS bridge
Replies: 50
Views: 3048

Re: Calculating amount needed for SS bridge

For $660K, you can get a 15 year, period certain, immediate annuity that will pay $4500/month, with COL increases indexed to CPI Dang, that's a 2.7% real rate, if my math is correct. I hadn't thought of annuatizing the bridge, but maybe I should. www.immediateannuities.com is a good place to start ...
by CRTR
Tue Oct 09, 2018 6:29 pm
Forum: Investing - Help with Personal Investments
Topic: Calculating amount needed for SS bridge
Replies: 50
Views: 3048

Re: Calculating amount needed for SS bridge

Another option could be an immediate annuity. $650k investment, 15 year, period certain, with CPI COLA would give you ~$54k/year
by CRTR
Tue Oct 09, 2018 3:59 pm
Forum: Personal Finance (Not Investing)
Topic: Elder care tax question(s)
Replies: 31
Views: 2018

Elder care tax question(s)

Things just got a little more complicated for me from a tax perspective. I'm a recent retiree and have an elderly mother (90 this year). She lives in an assisted living/certified memory care facility in San Diego. She officially ran out of money earlier this year. For the past 10 years or so, I have...
by CRTR
Tue Oct 09, 2018 1:34 pm
Forum: Investing - Help with Personal Investments
Topic: Help with Portfolio please
Replies: 7
Views: 1218

Re: Help with Portfolio please

I'd be cautious about using a one time backtest against one one asset allocation especially at a time of high S&P 500/CAPE valuations. After a 20-50% correction, that backtest will look a lot different. Also I think the buy and hold portfolio is 10% across 10 asset classes so a bit different. Altho...
by CRTR
Tue Oct 09, 2018 12:41 pm
Forum: Investing - Help with Personal Investments
Topic: Bonds for an aggressive investor
Replies: 25
Views: 2499

Re: Bonds for an aggressive investor

Should a young (36 years old) investor own bonds at this point of his/her life? If I expect a government pension and can assume greater risk, shouldn't I just go all stock? Why would anyone purchase bonds in a rising interest rate environment? An investor under the age of 40, especially one whose r...
by CRTR
Tue Oct 09, 2018 11:45 am
Forum: Investing - Help with Personal Investments
Topic: Investing Options for Emergency Funds/Cash Needed in short term (1-2 years)
Replies: 5
Views: 670

Re: Investing Options for Emergency Funds/Cash Needed in short term (1-2 years)

VCTXX https://investor.vanguard.com/mutual-funds/profile/VCTXX Would be free from State and Federal tax and yield 1.34%, but you lose 16 basis points to management fees. The question at that point is whether a 15 basis point gain in after tax returns is worth the hassle of moving things around. Thi...
by CRTR
Sat Oct 06, 2018 6:24 pm
Forum: Investing - Help with Personal Investments
Topic: Bump Rate CD decisions
Replies: 3
Views: 411

Re: Bump Rate CD decisions

Don't know if you're attached to GE Credit Union but there are other options with a bit better rate:

https://www.depositaccounts.com/cd/3-year-cd-rates.html