Search found 3072 matches

by Dale_G
Thu Jun 21, 2018 9:18 pm
Forum: Investing - Help with Personal Investments
Topic: How much of your taxable holdings is unrealized capital gains?
Replies: 58
Views: 5345

Re: How much of your taxable holdings is unrealized capital gains?

My capital gain on equities in the taxable account is 56% of the portfolio - and I am going to do my level best to work off a 6 figure capital loss at 3K per year against ordinary income. I am only going to have to live another 35 years. But really, I don't see a problem here. If I needed to spend s...
by Dale_G
Sun Jun 17, 2018 2:06 pm
Forum: Investing - Theory, News & General
Topic: Basic Inflation Questions
Replies: 21
Views: 1270

Re: Basic Inflation Questions

And it is not just that the basket of goods that cost $40,000 this year will cost (on average) $41,120 next year. The one million dollar portfolio that backs the withdrawal just lost $28,000 in buying power.

Dale
by Dale_G
Fri Jun 15, 2018 2:19 pm
Forum: Investing - Help with Personal Investments
Topic: How confident are you with this scenerio?
Replies: 11
Views: 1637

Re: How confident are you with this scenerio?

Very confident. Your expenses are well aligned with your assets.

I don't think I would rent the home for 2K net/mo. That looks like a 2.4% return on a big hunk of capital - before taxes.

Dale
by Dale_G
Thu Jun 07, 2018 12:01 am
Forum: Personal Finance (Not Investing)
Topic: Guidance About New Spouse's IRS Issues
Replies: 61
Views: 5761

Re: Guidance About New Spouse's IRS Issues

Thank you for the update - and I am glad the matter is resolve. Good luck going forward.

Dale
by Dale_G
Tue Jun 05, 2018 12:51 pm
Forum: Investing - Help with Personal Investments
Topic: Annuitizing a deferred / variable annuity?
Replies: 41
Views: 2238

Re: Annuitizing a deferred / variable annuity?

The OP should check the "guaranteed" rate on annuitization. Interest rates were much higher 20 years ago, and the guaranteed rate could be in excess of 4%. Five years ago I annuitized a couple of Vanguard annuities. One for a fixed period of 10 years and and the other for 23 years. The guaranteed ra...
by Dale_G
Sun Jun 03, 2018 10:13 pm
Forum: Investing - Theory, News & General
Topic: Taxable Investing if Not Worried About Capital Gains
Replies: 9
Views: 1568

Re: Taxable Investing if Not Worried About Capital Gains

I also have a 6 figure tax loss carry-forward left over from 2008/2009. The index funds in taxable have zippo capital gains distributions, and at 81 YO, it is most unlikely that I will every use up the loss carry-forward against ordinary income at $3,000 per year. So I feel comfortable with holding ...
by Dale_G
Wed May 30, 2018 4:45 pm
Forum: Investing - Help with Personal Investments
Topic: 15% rate of return in last 15 years can I expect the same in next 16 years
Replies: 39
Views: 4254

Re: 15% rate of return in last 15 years can I expect the same in next 16 years

Note: The OP is talking about an increase in "net worth", not investment return. With a family income of 500K and a total net worth of 4 million, 15% per annum isn't a big surprise over the past 15 years.

Dale
by Dale_G
Sun May 27, 2018 12:54 pm
Forum: Personal Finance (Not Investing)
Topic: What was your experience inheriting assets held at Vanguard?
Replies: 24
Views: 2360

Re: What was your experience inheriting assets held at Vanguard?

The individual funds do not get liquidated. The fund shares in each account get divided and are moved "in kind" to accounts properly set up accounts of the beneficiaries.

Dale
by Dale_G
Sat May 26, 2018 10:10 pm
Forum: Personal Finance (Not Investing)
Topic: What was your experience inheriting assets held at Vanguard?
Replies: 24
Views: 2360

What was your experience inheriting assets held at Vanguard?

I am not doing the inheriting, but if there is anything leftover after I am gone, my heirs will have the experience. My question is: How did it go?

Dale
by Dale_G
Thu May 24, 2018 11:35 pm
Forum: Investing - Help with Personal Investments
Topic: Exiting a variable annuity
Replies: 12
Views: 1228

Re: Exiting a variable annuity

sergeant wrote:
Thu May 24, 2018 3:42 pm
I doubt it. Show your numbers AFTER you (or IRA provider) receive the check.
Since this is a variable annuity purchased 1-1/2 years ago, it could well have appreciated more than the 5% exit fee.

Dale+-
by Dale_G
Thu May 24, 2018 12:21 pm
Forum: Investing - Help with Personal Investments
Topic: Exiting a variable annuity
Replies: 12
Views: 1228

Re: Exiting a variable annuity

I agree Frank, bite the bullet. Lesson learned, get on with life.

Dale
by Dale_G
Fri May 18, 2018 1:56 pm
Forum: Investing - Help with Personal Investments
Topic: Moving taxable investments...tax-free?
Replies: 18
Views: 2365

Re: Moving taxable investments...tax-free?

No Linus, almost without exception , you can move the funds from one brokerage to another "in kind" without needing to sell. But it is probably a good idea to "tax harvest" while you are in zero capital gains tax status. If you have proprietary funds from the likes of ED Jones, you may not be able t...
by Dale_G
Thu May 17, 2018 12:34 am
Forum: Investing - Help with Personal Investments
Topic: Thinking about self-managing my account
Replies: 25
Views: 1619

Re: Thinking about self-managing my account

At a 28% tax rate I think you will want to stick with munis - and forget Total Bond Market in the taxable account. And I would be pretty sure your planned early expenditures are what brought the limited term muni into play. No harm done, but if you want to consolidate the bond funds, it might be pre...
by Dale_G
Wed May 16, 2018 11:15 pm
Forum: Investing - Help with Personal Investments
Topic: Thinking about self-managing my account
Replies: 25
Views: 1619

Re: Thinking about self-managing my account

I am also a little mystified about the 3 muni funds unless you indicated that you might want to withdraw money from the portfolio a few years down the line. That would make the limited term fund a reasonable choice, and combined with the long term you pretty much match the duration of the intermedia...
by Dale_G
Wed May 16, 2018 10:40 pm
Forum: Investing - Help with Personal Investments
Topic: Rebalancing & ignoring some asset classes I already have investments in?
Replies: 2
Views: 252

Re: Rebalancing & ignoring some asset classes I already have investments in?

yurtdweller - I haven't done exactly the same thing, but your plan is perfectly reasonable. Certainly stop reinvesting any dividends in the funds you want to "edge out of", and invest the dividends in the funds you want to keep.

Dale
by Dale_G
Sun May 13, 2018 12:14 am
Forum: Investing - Theory, News & General
Topic: Anything wrong with too many lots?
Replies: 47
Views: 5049

Re: Anything wrong with too many lots?

Does it matter at all if you prefer for simplicity sake to use average cost? It sure can. In my case simplicity could be very expensive. The "average cost" of my Total Stock Market shares (VTSAX) is $20.45, most purchased near the lows of 2008/2008. The closing price on Friday 5/11/18 was 68.43. Se...
by Dale_G
Sat May 12, 2018 11:25 pm
Forum: Investing - Theory, News & General
Topic: Tax-Loss Harvesting a Muni Bond Fund: BMBIX
Replies: 2
Views: 504

Re: Tax-Loss Harvesting a Muni Bond Fund: BMBIX

BMBIX declares dividends monthly (page 107 of the Statuary Prospectus), so the 6 month rule applies. Selling the 7 month old shares in order to to TLH works - and all dividends will remain tax fed tax free.

Dale
by Dale_G
Wed May 09, 2018 2:11 pm
Forum: Investing - Theory, News & General
Topic: ETF's vs. Mutual Funds in Market Panics
Replies: 21
Views: 1915

Re: ETF's vs. Mutual Funds in Market Panics

I think this is a little "scare piece" to discourage clients from moving to ETFs - and keep clients within the preferred DFA funds. But, flash crashes and pricing anomalies have occurred. Rule 1. Never sell anything during a market panic Rule 2. Never set a standing set a "stop loss" order Otherwis...
by Dale_G
Wed May 09, 2018 2:09 pm
Forum: Investing - Theory, News & General
Topic: ETF's vs. Mutual Funds in Market Panics
Replies: 21
Views: 1915

Re: ETF's vs. Mutual Funds in Market Panics

I think this is a little "scare piece" to discourage clients away from ETFs to keep clients within the preferred DFA funds. But, flash crashes and pricing anomalies have occurred. Rule 1. Never sell anything during a market panic Rule 2. Never set a standing set a "stop loss" order Otherwise, ETFs w...
by Dale_G
Tue May 08, 2018 11:31 pm
Forum: Investing - Help with Personal Investments
Topic: Question on safety of ETFs
Replies: 32
Views: 2336

Re: Question on safety of ETFs

triceratop wrote:
Tue May 08, 2018 8:43 pm
I would remove VSS. I have a great deal of fear when trading VSS.
And what is your source of paranoia with VSS?

Dale
by Dale_G
Fri May 04, 2018 11:25 pm
Forum: Investing - Help with Personal Investments
Topic: Is it worth it to dissolve this inherited annuity?
Replies: 33
Views: 2581

Re: Is it worth it to dissolve this inherited annuity?

I learned something today. In the "old" days annuity beneficiaries were not permitted to do a 1031 exchange. In 2013 the IRS issued a Private Letter Ruling PLR 201330016 that did permit such exchanges. See Kitces at https://www.kitces.com/blog/irs-opens-door-in-plr-201330016-for-1035-exchange-by-ben...
by Dale_G
Fri May 04, 2018 4:09 pm
Forum: Personal Finance (Not Investing)
Topic: How much should I save or would be available for health care in retirement?
Replies: 43
Views: 4534

Re: How much should I save or would be available for health care in retirement?

Oops - I see that I have been making duplicate posts. I hope that doesn't mean that I need a brain transplant That could be very pricey. :annoyed BruceM's number are about right for most people. Once you hit IRMAA (Income Related Monthly adjustment Amount) the premiums can rise pretty quickly - and ...
by Dale_G
Fri May 04, 2018 12:58 am
Forum: Personal Finance (Not Investing)
Topic: How much should I save or would be available for health care in retirement?
Replies: 43
Views: 4534

Re: How much should I save or would be available for health care in retirement?

I understand that Medicare has premiums and right now don't have a lot of health issues. I assume I can rely on Medicare, but probably not. ...... I am sure medicare will be around for a long time, but the cost will continue to be based on income. Lower income = lower cost, higher income = be prepa...
by Dale_G
Fri May 04, 2018 12:49 am
Forum: Personal Finance (Not Investing)
Topic: How much should I save or would be available for health care in retirement?
Replies: 43
Views: 4534

Re: How much should I save or would be available for health care in retirement?

I understand that Medicare has premiums and right now don't have a lot of health issues. I assume I can rely on Medicare, but probably not. ...... I am sure medicare will be around for a long time, but the cost will continue to be based on income. Lower income = lower cost, higher income = be prepa...
by Dale_G
Thu May 03, 2018 11:34 pm
Forum: Investing - Theory, News & General
Topic: Morningstar--Manager Exit Triggers Downgrade At Giant Vanguard Fund(Vanguard Short-Term Investment Grade )
Replies: 10
Views: 1699

Re: Morningstar--Manager Exit Triggers Downgrade At Giant Vanguard Fund(Vanguard Short-Term Investment Grade )

I own a small amount of Short Term Corporate and I am unconcerned. As we all know, it is difficult, if not impossible to measure skill. The new guys could be more or less skilled than the predecessor. In any case, the difference in performance shouldn't be more than a few basis points. With bond fun...
by Dale_G
Thu May 03, 2018 4:42 pm
Forum: Investing - Help with Personal Investments
Topic: Is it worth it to dissolve this inherited annuity?
Replies: 33
Views: 2581

Re: Is it worth it to dissolve this inherited annuity?

ginrummy, you need to look at the contract in question. If you don't have once NWM will send a copy of the original. 1. What is the "NAME" of the annuity? In other words - what does NWM call it? 2. Is the contract the "front-load" or "back-load" version? 3. What was the date of origination? 4. Is th...
by Dale_G
Tue May 01, 2018 11:08 pm
Forum: Investing - Help with Personal Investments
Topic: How to simplify LTCG tax lots in taxable?
Replies: 3
Views: 471

Re: How to simplify LTCG tax lots in taxable?

I do keep my own records, but I have never found any discrepancy with Vanguard. With Specific ID, Vanguard makes it very easy to sell any "covered" lots that you wish. I recently sold a couple of large lots and about 40 small lots (reinvested dividends) of two municipal bond funds for tax loss purpo...
by Dale_G
Mon Apr 30, 2018 4:32 pm
Forum: Investing - Help with Personal Investments
Topic: Is it worth it to dissolve this inherited annuity?
Replies: 33
Views: 2581

Re: Is it worth it to dissolve this inherited annuity?

Dale_G wrote:
Mon Apr 30, 2018 4:31 pm
always at ordinary income -
Dale

Sorry about any dupes - and inaccurate info above - editing isn't working in my favor.
by Dale_G
Mon Apr 30, 2018 4:31 pm
Forum: Investing - Help with Personal Investments
Topic: Is it worth it to dissolve this inherited annuity?
Replies: 33
Views: 2581

Re: Is it worth it to dissolve this inherited annuity?

always at ordinary income -
Dale

Sorry about any dupes
by Dale_G
Mon Apr 30, 2018 4:26 pm
Forum: Investing - Help with Personal Investments
Topic: Is it worth it to dissolve this inherited annuity?
Replies: 33
Views: 2581

Re: Is it worth it to dissolve this inherited annuity?

Dale_G wrote:
Mon Apr 30, 2018 4:23 pm
always at ordinary income. Sorry for the dupe - can't delete.
by Dale_G
Mon Apr 30, 2018 4:23 pm
Forum: Investing - Help with Personal Investments
Topic: Is it worth it to dissolve this inherited annuity?
Replies: 33
Views: 2581

Re: Is it worth it to dissolve this inherited annuity?

always at ordinary income - no different than a traditional IRA or 401k with after tax contributions.

Dale
by Dale_G
Mon Apr 30, 2018 3:43 pm
Forum: Investing - Help with Personal Investments
Topic: Is it worth it to dissolve this inherited annuity?
Replies: 33
Views: 2581

Re: Is it worth it to dissolve this inherited annuity?

This must be a typo Another idea is to split the untaxed portion of the DVA in two. Sell half of this un taxed portion this year and the rest + the basis next year (note you can do this with a DVA as they are required to distribute earnings first). This would likely drop your marginal tax rate, redu...
by Dale_G
Mon Apr 30, 2018 3:07 pm
Forum: Investing - Help with Personal Investments
Topic: Is it worth it to dissolve this inherited annuity?
Replies: 33
Views: 2581

Re: Is it worth it to dissolve this inherited annuity?

If the OP has any interest in annuitizing and/or doing a 1031 exchange to Vanguard, there is a critical item to be checked. That is: What is the "guaranteed interest rate" on annuitization. Not the BS rate that includes return of capital, but the "guaranteed" rate which is the actual interest rate o...
by Dale_G
Sat Apr 28, 2018 11:39 pm
Forum: Investing - Help with Personal Investments
Topic: Can Employer Set 401k Contribution Limit Below IRS Limit?
Replies: 33
Views: 2730

Re: Can Employer Set 401k Contribution Limit Below IRS Limit?

Don't feel too bummed out youngpleb. At my last job as an HCE I was limited to about 1-1/2% of pay - because of a low contribution rate of non-HCEs. When education and propaganda visits from the 401k provider didn't do much to increase participation, one HCE threatened to put non-contributors on a w...
by Dale_G
Wed Apr 18, 2018 11:24 pm
Forum: Investing - Help with Personal Investments
Topic: Are you keeping more in cash?
Replies: 31
Views: 5007

Re: Are you keeping more in cash?

I am 80 YO and and cash has amounted to about 0.4% of the portfolio for the past 15 years - just enough so I don't have to bother with a check register or pay attention to anything that goes on the credit card. Nothing exciting happens anyway. I certainly don't think that letting cash rise to 5% of ...
by Dale_G
Wed Apr 18, 2018 12:04 pm
Forum: Personal Finance (Not Investing)
Topic: Tax day come and gone.....
Replies: 29
Views: 3304

Re: Tax day come and gone.....

an_asker wrote:
Wed Apr 18, 2018 10:21 am
Just curious - are you the same person who was based in Hawaii or NZ (or am I confusing you with someone else)?
Nope, I am located in Central Florida.
by Dale_G
Wed Apr 18, 2018 10:09 am
Forum: Personal Finance (Not Investing)
Topic: Tax day come and gone.....
Replies: 29
Views: 3304

Re: Tax day come and gone.....

For sure: The bonds belong in the 401k if there is anything like a suitable fund available. The tax man will be around for a long time - and a growthy 401k will lead to higher RMDs later on - taxed at ordinary income rates . If there are no decent bond funds, then a low equity Target Date or LifeStr...
by Dale_G
Tue Apr 17, 2018 11:57 am
Forum: Investing - Help with Personal Investments
Topic: Structured Settlement versus cash
Replies: 10
Views: 1296

Re: Structured Settlement versus cash

In a nutshell it stated with a structured settlement rate of return at 4% I suggest you return when you know the lump sum and structured settlement details (monthly payment and term). Since 4% is well above market rates, I question whether there is an actual return of 4% embedded in the structured ...
by Dale_G
Sat Apr 14, 2018 9:43 pm
Forum: Investing - Theory, News & General
Topic: How many of you have some developed international and EM indexed bond funds in your portfolio?
Replies: 25
Views: 2129

Re: How many of you have some developed international and EM indexed bond funds in your portfolio?

12% of my bonds are in emerging markets via VWOB, VEGBX and PCY in roughly equal portions. The Vanguard link to the VEGBX reports and prospectus are goofy at the moment, but I don't think VEGBX is an index fund. I don't hold any International Developed Market bonds.

Dale
by Dale_G
Fri Apr 13, 2018 10:36 pm
Forum: Investing - Theory, News & General
Topic: vanguard notice - retiring our old investment platform
Replies: 50
Views: 7687

Re: vanguard notice - retiring our old investment platform

I might not be up to date, but the last I knew you could not schedule "automatic" exchanges from say, Prime MM to a muni fund or auto exchanges to a bank account on/in the brokerage platform. I don't do either now, but it would be handy if I depart earlier than my wife. No internet where you're goi...
by Dale_G
Fri Apr 13, 2018 7:05 pm
Forum: Investing - Theory, News & General
Topic: vanguard notice - retiring our old investment platform
Replies: 50
Views: 7687

Re: vanguard notice - retiring our old investment platform

I might not be up to date, but the last I knew you could not schedule "automatic" exchanges from say, Prime MM to a muni fund or auto exchanges to a bank account on/in the brokerage platform. I don't do either now, but it would be handy if I depart earlier than my wife. Has this changed - or is it s...
by Dale_G
Sat Apr 07, 2018 11:02 pm
Forum: Investing - Theory, News & General
Topic: What is your AA, given your age? and, Why?
Replies: 163
Views: 14341

Re: What is your AA, given your age? and, Why?

80 years old. When I retired in 2001 (the month after 9/11 didn't seem like a particularly auspicious time) I was at 55% equities / 45% bonds. I maintained that allocation until about 3 years ago when I decided to cap bonds at a very comfortable level and let equities run. I am now at 72% equities, ...
by Dale_G
Sat Apr 07, 2018 3:54 pm
Forum: Investing - Theory, News & General
Topic: Are we in bear territory?
Replies: 49
Views: 6610

Re: Are we in bear territory?

I'm in bear territory. Have to take the bird feeders down in the spring and summer so they don't get destroyed. You must be up north retiredjg. Around here the bears do not hibernate, so bird feeders are at risk all year long. The market bears don't hibernate either. I've learned to live with the b...
by Dale_G
Tue Apr 03, 2018 3:31 pm
Forum: Investing - Help with Personal Investments
Topic: Annuity w guaranteed 5-6% return [payout]?
Replies: 50
Views: 5938

Re: Annuity w guaranteed 5-6% return [payout]?

At what age is mortality credit more important then the current interest rates of Treasuries for purchasing a SPIA? Paul The concept of "mortality credits" is misunderstood. The payments of an non-inflation adjusted immediate annuity are fixed at the time of issue. A still living annuitant doesn't ...
by Dale_G
Wed Mar 07, 2018 10:22 pm
Forum: Personal Finance (Not Investing)
Topic: how to avoid deemed 401K loan penalty
Replies: 7
Views: 712

Re: how to avoid deemed 401K loan penalty

From one website: https://www.hhcpa.com/blogs/employee-benefits-audit-services/when-is-a-loan-considered-a-deemed-distribution/ A loan taken from an employee benefit plan that is in default is generally treated as a taxable distribution from the plan of the entire outstanding balance of the loan (a ...
by Dale_G
Wed Mar 07, 2018 3:57 pm
Forum: Investing - Help with Personal Investments
Topic: Keep or get out of Variable annuity? Hairy math.
Replies: 35
Views: 2127

Re: Keep or get out of Variable annuity? Hairy math.

sNOP ...
itstoomuch wrote:
Tue Mar 06, 2018 10:57 pm
I see no escape paths.
I have just 2 thoughts:
1. roll current annuity in a 1035 to establish a new basis.
2. look at newer GLWB annuities.
Doing a 1035 exchange into a new annuity does not have any effect on the basis. The new annuity will carry the old basis.

Dale
by Dale_G
Mon Mar 05, 2018 1:25 am
Forum: Investing - Help with Personal Investments
Topic: Life Insurance: John Hancock Vitality Rider
Replies: 9
Views: 740

Re: Life Insurance: John Hancock Vitality Rider

Under present law estate taxes kick in when assets exceed 5 million, so you probably don't have to worry about that now. Do you know that assets in a taxable account receive a "stepped up basis" on your death? Your investments and gains on those investments are tax free your heirs. There is a tax dr...
by Dale_G
Sat Mar 03, 2018 12:29 am
Forum: Personal Finance (Not Investing)
Topic: New guy with a "scheme"... [transfer earned income to kids]
Replies: 35
Views: 4438

Re: New guy with a "scheme"...

I think your use of the word "scheme" was well chosen. If you and your SO are actually in business to make money, you have half a chance. If not, and either you or your SO are ever audited, the IRS will not look favorably on what appears on the surface to be a sham operation to convert gifts to inco...
by Dale_G
Fri Mar 02, 2018 2:18 pm
Forum: Investing - Help with Personal Investments
Topic: AOBC, horrible decision [American Outdoor Brands]
Replies: 30
Views: 4059

Re: AOBC, horrible decision [American Outdoor Brands]

A basic investing mistake is to continue to hold a losing investment "until it breaks even". When someone says they want to hold "until it breaks even", it means they don't really want to hold that investment, but the pain of recognizing the loss is more painful than simply continuing to hold the lo...
by Dale_G
Mon Feb 26, 2018 2:19 am
Forum: Investing - Theory, News & General
Topic: Blasphemy... DO PEEK!
Replies: 100
Views: 10276

Re: Blasphemy... DO PEEK!

I update my portfolio spreadsheet most days of the week (Lotus 123 Millennium Edition circa 1999) - and my Lotus files go back to 1982. Various computer crashes eliminate any records before that. Too bad, I like to know what I have done and why. Pre-1982, I can only guess. I am an octogenarian Engin...