Search found 21780 matches

by grabiner
Sun Jun 24, 2018 10:35 pm
Forum: Investing - Theory, News & General
Topic: Thrift Savings Plan to Change I Fund Index
Replies: 34
Views: 4840

Re: Thrift Savings Plan to Change I Fund Index

I don't currently have any in TSP I fund, but this got me thinking about whether I should use the I fund instead of VTIAX once TSP switches the benchmark next year. For the balance I have in VTIAX, it would be a savings in ER of maybe $130 a year. But it would seem to be a wash in my case, as I'd l...
by grabiner
Sun Jun 24, 2018 10:18 pm
Forum: Investing - Help with Personal Investments
Topic: How much of your taxable holdings is unrealized capital gains?
Replies: 58
Views: 4997

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

I am 50. My taxable stock is about 50% unrealized gains, and only 6% of the portfolio could be sold without significant gains. I have about $60K in realized losses, mostly from 2008-2009, but also some from the international decline in 2012, and from 2016 in emerging markets.
by grabiner
Sun Jun 24, 2018 9:56 pm
Forum: Investing - Help with Personal Investments
Topic: Variable Annuity question
Replies: 5
Views: 693

Re: Variable Annuity question

It is surprising that a 10 year old variable annuity would be comprised of only basis. If it contained equity sub funds, the balance ought to be more than half earnings. If that were the case, there would be a more serious tax dilema and annuitization might be worth considering...... Alternatively,...
by grabiner
Sun Jun 24, 2018 9:52 pm
Forum: Investing - Help with Personal Investments
Topic: Sell individual stock, or index fund
Replies: 12
Views: 1090

Re: Sell individual stock, or index fund

Another thing you could do with the individual stocks is to donate them to charity. You shouldn't do this just for the tax benefit, but if you want to donate $5000 to a charity, donating $5000 of stock which you bought for $2000 is a good way to get rid of $3000 in long-term capital gains and still ...
by grabiner
Sun Jun 24, 2018 9:43 pm
Forum: Investing - Help with Personal Investments
Topic: Convert Windsor II to Primecap in Roth IRA?
Replies: 6
Views: 567

Re: Convert Windsor II to Primecap in Roth IRA?

Welcome to the forum, doreamon Windsor II is large cap value. PRIMECAP is large cap growth. How does this change fit with your desired asset allocation? In particular, if you make this move because you would prefer PRIMECAP, you might change the rest of your allocation, such as selling $25K of a gro...
by grabiner
Sun Jun 24, 2018 9:38 pm
Forum: Investing - Help with Personal Investments
Topic: MUB vs SHY For a taxable account [iShares National Muni Bond vs. 1-3 Year Treasury]
Replies: 13
Views: 980

Re: MUB vs SHY For a taxable account [iShares National Muni Bond vs. 1-3 Year Treasury]

For bonds with the same after-tax yield, Treasuries are likely to be better because they have lower risk. Most investors who consider munis have a higher tax gap between munis and Treasuries than 22% versus 9%, so they will require a higher yield gap to buy Treasuries. So it isn't the math but the ...
by grabiner
Sun Jun 24, 2018 8:21 pm
Forum: Investing - Help with Personal Investments
Topic: MUB vs SHY For a taxable account [iShares National Muni Bond vs. 1-3 Year Treasury]
Replies: 13
Views: 980

Re: MUB vs SHY For a taxable account [iShares National Muni Bond vs. 1-3 Year Treasury]

In your tax situation, Treasuries are the most advantageous pretty much across the board. If I was in your shoes, I'd dump all of my munis and move into Treasuries. Please explain how Treasuries are more advantageous to OP than iShares California Muni Bond ETF (CMF) if he is in the 22% Federal tax ...
by grabiner
Sun Jun 24, 2018 5:38 pm
Forum: Investing - Help with Personal Investments
Topic: Moving taxable investments...tax-free?
Replies: 17
Views: 2113

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

If you are in a low tax bracket, you probably don't want munis; taxable bonds of the same risk level will give a better return after tax. I-Bonds are a good investment for bonds in a taxable account, because the growth is tax-deferred over years of high and low taxes, and exempt from state tax when...
by grabiner
Sat Jun 23, 2018 4:34 pm
Forum: Personal Finance (Not Investing)
Topic: Coming back to US: state residency for 2018 (OH, NJ, both?)
Replies: 5
Views: 685

Re: Coming back to US: state residency for 2018 (OH, NJ, both?)

Bumping this. My basic question is really just about multi-state residency. Do I need to fill out multiple W4s, or do I just deal with it next April? You should fill out multiple W-4s as you change residency. The state probably requires that all residents of the state have tax withheld by that stat...
by grabiner
Sat Jun 23, 2018 4:27 pm
Forum: Personal Finance (Not Investing)
Topic: ARM options, thought process
Replies: 8
Views: 824

Re: ARM options, thought process

Paying down the ARM is almost equivalent to buying a 4-year CD at the current rate. You would be in the same situation if you bought a 4-year CD now, and used its proceeds to pay down the ARM when it resets. By keeping the ARM rather than paying it down, you do retain the option to keep a larger mor...
by grabiner
Sat Jun 23, 2018 4:17 pm
Forum: Personal Finance (Not Investing)
Topic: Taxes for buy fund from selling other funds?
Replies: 11
Views: 644

Re: Taxes for buy fund from selling other funds?

My household bracket is 30%. I am in North Carolina. I already have $11k in Total Bond market ETF. Should I switch it to VWITX ? There is no 30% federal tax bracket, so I would assume this was 25% federal and 5.5% NC last year, which would probably become 22% federal and 5.5% NC this year. In the 2...
by grabiner
Sat Jun 23, 2018 4:02 pm
Forum: Personal Finance (Not Investing)
Topic: Noncovered shares, switch cost basis to specific id
Replies: 6
Views: 570

Re: Noncovered shares, switch cost basis to specific id

While you can change your basis, Vanguard may not have the necessary records, and may still report the basis to you as average cost (but not to the IRS at all). I have this issue with my Emerging Markets Index. Vanguard has only average-cost information for the non-covered shares. Therefore, when I ...
by grabiner
Sat Jun 23, 2018 3:24 pm
Forum: Investing - Help with Personal Investments
Topic: How to shelter 500k
Replies: 11
Views: 1429

Re: How to shelter 500k

If your children are not maxing out their retirement accounts, you can give them a gift now so that they can get more tax-deferred savings. You probably don't want to gift the ETFs you hold now, as your children when get a stepped-up basis if they inherit, but you can make gifts from the dividends, ...
by grabiner
Sat Jun 23, 2018 3:21 pm
Forum: Investing - Help with Personal Investments
Topic: Moving taxable investments...tax-free?
Replies: 17
Views: 2113

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

I haven't gotten much feedback on the idea of switching to municipal and I-bonds for a couple of years while I do the transfers. I believe I-bond purchases are limited to $10k/person and $5k/tax return (up to the amount refunded); are there other considerations? If you are in a low tax bracket, you...
by grabiner
Sat Jun 23, 2018 3:19 pm
Forum: Investing - Help with Personal Investments
Topic: Target Date Fund in Taxable / Large Unrealized Gain Question
Replies: 13
Views: 896

Re: Target Date Fund in Taxable / Large Unrealized Gain Question

Since you live in NJ, note that NJ does not allow capital loss carryovers, but does allow losses to be deducted against gains in the same year. Therefore, if you have a capital loss from somewhere else (tax loss harvesting, for example), sell for a capital gain in the same year to get the benefit of...
by grabiner
Sat Jun 23, 2018 3:11 pm
Forum: Investing - Help with Personal Investments
Topic: Considering adding VWALX; pros-cons
Replies: 14
Views: 1537

Re: Considering adding VWALX; pros-cons

Add 5% to the stock side/allocation of your portfolio if you want to reach for more return. Stick with Int-Term Tax-Exempt in this rising interest rate environment. Thanks for the response. As I move into retirement I am looking to reduce my equity allocation currently at 65%; down to ~ 50-50 . The...
by grabiner
Sat Jun 23, 2018 3:04 pm
Forum: Investing - Help with Personal Investments
Topic: US Small Cap Value Funds
Replies: 14
Views: 1229

Re: US Small Cap Value Funds

Seems then like Vanguard's advantage is just the much smaller expense ratio, but IJS will give you better performance in capturing the SCV premium. But you pay 25 bps for that. If you are going to do this in a taxable account, you might use RZV, Guggenheim S&P 600 Pure Value. The dividend yield of ...
by grabiner
Sat Jun 23, 2018 2:59 pm
Forum: Investing - Help with Personal Investments
Topic: Timing! [When to withdraw from a traditional IRA]
Replies: 8
Views: 1002

Re: Timing!

Can you please elaborate as to why the fund being in a traditional IRA made it not matter? The NAV will fluctuate daily regardless. The NAV will be reduced proportionally to the dividend as well. Given that it’s in the IRA there is no tax-difference between spending dividends or withdrawing additio...
by grabiner
Sat Jun 23, 2018 2:54 pm
Forum: Investing - Help with Personal Investments
Topic: Can you change HSA contributions throughout year?
Replies: 4
Views: 541

Re: Can you change HSA contributions throughout year?

If your employer does not allow you to change your payroll contributions to an HSA, you can make your own contributions directly to the HSA provider. These are still tax-deductible (even if you don't itemize deductions). You lose the reduction of Social Security tax, but this may not even be a benef...
by grabiner
Sat Jun 23, 2018 2:51 pm
Forum: Investing - Help with Personal Investments
Topic: MUB vs SHY For a taxable account [iShares National Muni Bond vs. 1-3 Year Treasury]
Replies: 13
Views: 980

Re: MUB vs SHY For a taxable account [iShares National Muni Bond vs. 1-3 Year Treasury]

Even in this comparison, the munis are a bit riskier than the Treasuries. Muni funds have about the same credit risk as broad-market bond funds such as Total Bond Market Index (Vanguard's ticker BND). (This is reflected in the yields. Vanguard's intermediate-term muni fund yields 2.46% on Admiral sh...
by grabiner
Sat Jun 23, 2018 2:46 pm
Forum: Investing - Help with Personal Investments
Topic: Investing HSA and Backdoor Roth IRA
Replies: 10
Views: 1065

Re: Investing HSA and Backdoor Roth IRA

In terms of the HSA, I'm using it to investment purposes, unless there is a very large, unexpected charge I couldn't otherwise handle. The ticker symbols are for Vanguard Interm-Term Bond Index Inv and Vanguard Total Bond Market Index Inv, which are the HSA bond options with reasonable gross expens...
by grabiner
Sat Jun 23, 2018 2:43 pm
Forum: Investing - Help with Personal Investments
Topic: Foreign Taxes paid from Foreign Index fund in 401K
Replies: 5
Views: 504

Re: Foreign Taxes paid from Foreign Index fund in 401K

Benefiting from international funds paying foreign taxes when held in your taxable account is the primary reason they should be in a taxable account. If you haven't seen the wiki page on Tax-efficient Fund Placement , you might want to understand why it is best to hold different assets in different...
by grabiner
Sat Jun 23, 2018 2:36 pm
Forum: Investing - Help with Personal Investments
Topic: My first attempt at TLH
Replies: 14
Views: 1044

Re: My first attempt at TLH

Will the loss show on my year end tax statement? Or do I need to keep track of my numbers? If your shares are "covered" (they were purchased in the last few years), your brokerage is supposed to keep track of the cost basis, and will report that on a 1099-B to both you and the IRS. You should still...
by grabiner
Sat Jun 23, 2018 2:30 pm
Forum: Investing - Help with Personal Investments
Topic: Don’t like employers HSA
Replies: 3
Views: 363

Re: Don’t like employers HSA

You can transfer funds between HSA custodians. Your suggestion is a common strategy: put all contributions in the employer HSA, and then transfer to your preferred custodian once per year.
by grabiner
Sat Jun 23, 2018 2:22 pm
Forum: Investing - Help with Personal Investments
Topic: Fixing My Cost Basis [on inherited stocks]
Replies: 13
Views: 848

Re: Fixing My Cost Basis [on inherited stocks]

My Fidelity statement is reporting the incorrect cost basis currently. If I sell these stocks, won’t Fidelity send me and the IRS 1099s with the wrong cost basis? I am concerned that if I just override the cost basis with correct lower amounts in my tax return, that I will have a problem with the I...
by grabiner
Wed Jun 20, 2018 10:39 pm
Forum: Investing - Help with Personal Investments
Topic: Where to invest $50K+ down payment money for five years?
Replies: 73
Views: 6228

Re: Where to invest $50K+ down payment money for five years?

Sure. Money market funds are generally taxable, but you can buy municipal money market funds which are tax free (it's kind of like regular corporate bonds versus municipal bonds). Currently the Vanguard Prime Money market has an SEC yield of 1.99%. The Vanguard Municipal money market has an SEC yie...
by grabiner
Wed Jun 20, 2018 9:12 pm
Forum: Personal Finance (Not Investing)
Topic: Why pay cash for a car?
Replies: 248
Views: 30045

Re: Why pay cash for a car?

I’m of the same opinion. If I can get a loan for say 1.99% and if my investments are currently making say 9 or 10%, why would I pay cash for a car? Because of the risk involved. Paying off your car loan (or not taking it out in the first place) is a risk-free, tax-free 1.99% return, and you might p...
by grabiner
Wed Jun 20, 2018 9:01 pm
Forum: Investing - Help with Personal Investments
Topic: Where to invest $50K+ down payment money for five years?
Replies: 73
Views: 6228

Re: Where to invest $50K+ down payment money for five years?

Sure. Money market funds are generally taxable, but you can buy municipal money market funds which are tax free (it's kind of like regular corporate bonds versus municipal bonds). Currently the Vanguard Prime Money market has an SEC yield of 1.99%. The Vanguard Municipal money market has an SEC yie...
by grabiner
Tue Jun 19, 2018 10:32 pm
Forum: Personal Finance (Not Investing)
Topic: Why pay cash for a car?
Replies: 248
Views: 30045

Re: Why pay cash for a car?

I’m of the same opinion. If I can get a loan for say 1.99% and if my investments are currently making say 9 or 10%, why would I pay cash for a car? Because of the risk involved. Paying off your car loan (or not taking it out in the first place) is a risk-free, tax-free 1.99% return, and you might p...
by grabiner
Tue Jun 19, 2018 7:00 pm
Forum: Investing - Help with Personal Investments
Topic: Tax Gain Harvesting
Replies: 24
Views: 1745

Re: Tax Gain Harvesting

Is anyone planning to do Tax Gain Harvest to take advantage of the new low tax rate? :moneybag The tax rates on long term capital gains have not changed. So there's no extra incentive for tax gain harvesting this year as opposed to last year. And it may actually be worse if you pay state taxes on t...
by grabiner
Tue Jun 19, 2018 6:58 pm
Forum: Investing - Theory, News & General
Topic: Seeking input from folks invested in Van. Tax Managed Balanced Fund
Replies: 10
Views: 957

Re: Seeking input from folks invested in Van. Tax Managed Balanced Fund

As to income from VTMBX, were they pretty consistent in the amount of tax exempt and the amount of taxable dividends from year to year? That's a good question. I don't have my mother's statements but glancing at her tax returns it seems that they don't vary more than about 10% from year to year (wh...
by grabiner
Tue Jun 19, 2018 6:53 pm
Forum: Personal Finance (Not Investing)
Topic: Would you pay off mortgage in my situation?
Replies: 31
Views: 2735

Re: Would you pay off mortgage in my situation?

You have 200 monthly payments left, which means that the effective duration for paying down your mortgage (weighted average of the time until all future payments) is about eight years. I am sorry for a novice question but is there a calculator to compute effective duration for paying down interest....
by grabiner
Tue Jun 19, 2018 6:37 pm
Forum: Investing - Help with Personal Investments
Topic: Advice - Parking cash before it gets paid in taxes
Replies: 8
Views: 1113

Re: Advice - Parking cash before it gets paid in taxes

I think you'll jump to the highest tax bracket and not the 24% fed / 9% state. Since this transaction is done, there's no point going back and debate whether you should defer your gain. It's a long-term capital gain, so it will put you into the highest state tax bracket. The federal marginal tax ra...
by grabiner
Mon Jun 18, 2018 11:29 pm
Forum: Personal Consumer Issues
Topic: Article on hotel booking sites - no bargains
Replies: 38
Views: 3918

Re: Article on hotel booking sites - no bargains

This matches my experience as well. I used to use hotels.com frequently, and often got better deals. But now I have found that it isn't worthwhile; I can check hotels.com for a list of prices, but if the hotel I want is a Comfort Inn or Courtyard, then going to choicehotels.com or marriott.com usual...
by grabiner
Mon Jun 18, 2018 11:18 pm
Forum: Personal Finance (Not Investing)
Topic: mortgage or 401k withdrawal
Replies: 4
Views: 502

Re: mortgage or 401k withdrawal

It's probably better to withdraw from the 401(k) and Roth IRA to avoid taking the mortgage, assuming the interest is non-deductible. However, don't take so much out of the 401(k) that you move up a tax bracket. Instead, withdraw the rest from the Roth IRA, and then if you want to have a Roth IRA, co...
by grabiner
Mon Jun 18, 2018 11:03 pm
Forum: Personal Finance (Not Investing)
Topic: Would you pay off mortgage in my situation?
Replies: 31
Views: 2735

Re: Would you pay off mortgage in my situation?

Sorry for bringing up another mortgage pay off thread. But I will be grateful for all your advise. I have a 3.375% 30 year mortgage with 200 monthly payments and 130K principal left. I am thinking to pay it off in next couple of months. That will use all liquidity except in our emergency fund (20K)...
by grabiner
Mon Jun 18, 2018 10:52 pm
Forum: Investing - Theory, News & General
Topic: Ex-dividend days: Is there typically anything out of the ordinary?
Replies: 34
Views: 2846

Re: Ex-dividend days: Is there typically anything out of the ordinary?

You would expect the price of a stock to drop by the amount of the dividend on ex-dividend day. There are other things at play here though. Good news could boost the stock price even with the announced dividend. In any case, the price is lower than it would have been if there had been no dividend a...
by grabiner
Mon Jun 18, 2018 10:48 pm
Forum: Investing - Theory, News & General
Topic: Seeking input from folks invested in Van. Tax Managed Balanced Fund
Replies: 10
Views: 957

Re: Seeking input from folks invested in Van. Tax Managed Balanced Fund

I don't recommend this fund even though I like the underlying investments. If you hold stocks and bonds in a taxable account, you want to hold tax-efficient stocks, and tax-exempt bonds if you are in a high tax bracket. Tax-Managed Balanced Fund does both of these, but you could do the same thing wi...
by grabiner
Mon Jun 18, 2018 10:42 pm
Forum: Investing - Theory, News & General
Topic: Do you have to invest in Bond ETF?
Replies: 7
Views: 901

Re: Do you have to invest in Bond ETF?

Given your age, I would say that you should have some bonds. The reason is that you don't really know how you will react to a bear market; there hasn't been one since 2009, when you probably didn't own any stock. I recommend no more than 80% stock until you know your reaction. If there is a bear mar...
by grabiner
Mon Jun 18, 2018 10:37 pm
Forum: Investing - Theory, News & General
Topic: SEC Yield vs Distribution Yield
Replies: 11
Views: 17804

Re: SEC Yield vs Distribution Yield

Useful info in this thread but a quick question - I am looking at VWITX (Vanguard Intermediate Term Tax-Exempt) : SEC yield 2.39% and latest Distribution Yield: 2.79% and VBTLX (Vanguard Total Bond) : SEC yield 3.12% and latest Distribution Yield: 2.76% Also I noted that VWITX declined only 1.77% Y...
by grabiner
Mon Jun 18, 2018 10:26 pm
Forum: Investing - Help with Personal Investments
Topic: Traditional IRA to Roth
Replies: 5
Views: 570

Re: Traditional IRA to Roth

See Traditional versus Roth on the wiki. Whether it is better to have Traditional or Roth dollars depends on your tax rate now and when you withdraw the money. If you are over the limit for making deductible contributions to a Traditional IRA, you are probably in a fairly high tax bracket, and there...
by grabiner
Mon Jun 18, 2018 10:21 pm
Forum: Investing - Help with Personal Investments
Topic: Diversify within Roth account?
Replies: 14
Views: 997

Re: Diversify within Roth account?

Correct me if I'm wrong but shouldn't you put international in your taxable account because the foreign tax fee is a write off in a taxable account. While this is true, the higher yields and lower qualified dividend percentage on international funds offset this benefit. Currently, the tax cost is a...
by grabiner
Mon Jun 18, 2018 10:15 pm
Forum: Investing - Help with Personal Investments
Topic: Advice - Parking cash before it gets paid in taxes
Replies: 8
Views: 1113

Re: Advice - Parking cash before it gets paid in taxes

You could view this as a negative bond which matures in April. If you buy a CD or bond which matures in April, you will be in exactly the same situation as if you had neither the CD nor the tax bill. If you buy a bond which matures after April, you are taking interest-rate risk, although that may be...
by grabiner
Mon Jun 18, 2018 10:06 pm
Forum: Investing - Help with Personal Investments
Topic: Calculating After Tax yield on CD
Replies: 7
Views: 1037

Re: Calculating After Tax yield on CD

A CDs after tax yield is calculated on paid interest per year but the CD compounds without the taxes. So calculating the ATY is not so straight forward. I calculate ATY on this CD to be 1.51% First, can you please explain this part a bit more? If in the US, you would pay taxes when the interest is ...
by grabiner
Mon Jun 18, 2018 5:59 pm
Forum: Investing - Help with Personal Investments
Topic: New to VG. Tax hit on trsfr of proprietary fund?
Replies: 10
Views: 725

Re: New to VG. Tax hit on trsfr of proprietary fund?

The fund was in a taxable account, not an IRA. When I said it "dropped to earth", I meant that according to my new understanding, it became a taxable event when liquidated. I was not expecting that. I'm in a low tax bracket with a gross income of $34,000, including Social Security. This makes it lo...
by grabiner
Mon Jun 18, 2018 5:00 pm
Forum: Investing - Help with Personal Investments
Topic: New to VG. Tax hit on trsfr of proprietary fund?
Replies: 10
Views: 725

Re: New to VG. Tax hit on trsfr of proprietary fund?

The fund was in a taxable account, not an IRA. When I said it "dropped to earth", I meant that according to my new understanding, it became a taxable event when liquidated. I was not expecting that. I'm in a low tax bracket with a gross income of $34,000, including Social Security. This makes it lo...
by grabiner
Sun Jun 17, 2018 10:12 pm
Forum: Investing - Help with Personal Investments
Topic: Tax implications of holding Wellesley Emergency in taxable
Replies: 8
Views: 890

Re: Tax implications of holding Wellesley Emergency in taxable

You can do the calculations yourself. See the distributions page of Welleley and then multiply each 2017 number by your number of shares: https://investor.vanguard.com/mutual-funds/profile/distributions/vwinx Then put that on your tax return (Form 1040 Schedule B) and see effect. You can also see t...
by grabiner
Sun Jun 17, 2018 10:08 pm
Forum: Investing - Help with Personal Investments
Topic: Vanguard Monthly Estimated Cap Gain Distributions
Replies: 3
Views: 522

Re: Vanguard Monthly Estimated Cap Gain Distributions

Realized gains are gains which have already happened, and thus which will be distributed at the end of the year (plus any future gains or minus any future losses.) These do have predictive value Unrealized gains will not be distributed unless they are realized first. In high-turnover actively-manage...
by grabiner
Sun Jun 17, 2018 10:04 pm
Forum: Investing - Help with Personal Investments
Topic: Take Advantage of Stable Value Fund?
Replies: 22
Views: 1382

Re: Take Advantage of Stable Value Fund?

LT Treasury is pretty unusual for your bond allocation. Are you aware of the duration risk? As far as I can tell, as long as the duration of the bond fund is somewhat lower than your investment horizon, generally speaking bond fund holders tend to benefit in rising rate environments from rising yie...
by grabiner
Sun Jun 17, 2018 9:56 pm
Forum: Investing - Help with Personal Investments
Topic: Vanguard Balanced Index Fund Admiral Shares (VBIAX)
Replies: 22
Views: 2087

Re: Vanguard Balanced Index Fund Admiral Shares (VBIAX)

Is Vanguard Balanced Index Fund Admiral Shares (VBIAX) a horrible choice for a taxable account? Yes. Compared to holding Total Stock and Total Bond separately, VBIAX is materially worse. The reason it is worse is the lack of flexibility of withdrawals. If you have separate bond and stock funds, and...