Search found 22489 matches

by grabiner
Tue Oct 30, 2018 11:28 pm
Forum: Personal Finance (Not Investing)
Topic: First Major Medical Expenses under HDHP
Replies: 31
Views: 3090

Re: First Major Medical Expenses under HDHP

Are you maxing out your retirement accounts? Since you are looking at tapping the emergency fund, I would assume you are not. If you are not maxing out your retirement accounts, you should use the HSA. While the HSA is the best place to make an investment, it isn't any better than other tax-sheltere...
by grabiner
Tue Oct 30, 2018 10:31 pm
Forum: Investing - Help with Personal Investments
Topic: inherited IRA
Replies: 14
Views: 1333

Re: inherited IRA

Picking up on David's post. RMD's are required minimum distributions. You can take out more than the minimum. I would take advantage of market downturns to take out more than the minimum to speed up the transfer. Since there are no tax costs, and you move the same fund over, it doesn't matter wheth...
by grabiner
Tue Oct 30, 2018 10:24 pm
Forum: Personal Finance (Not Investing)
Topic: Invest or Pay off Car Loan?
Replies: 19
Views: 1436

Re: Invest or Pay off Car Loan?

Agreed on all points, but why would I care about earning the same return (1.99) with minimal risk? It's pretty much a guarantee, at least in my mind, that long-term equity returns (which is where I would be putting my money) would be in excess of the 1.99 rate. You have two separate decisions: how ...
by grabiner
Mon Oct 29, 2018 11:38 pm
Forum: Investing - Theory, News & General
Topic: Debunking Bonds in Taxable
Replies: 99
Views: 10380

Re: Debunking Bonds in Taxable

But under what circumstances will you need $50K in a short time? That is more than the typical emergency fund, which you use to deal with things such as roof replacements and medical bills. If you need to replace a car, you can take out a loan, and pay it back quickly (say by reducing your 401(k) c...
by grabiner
Mon Oct 29, 2018 10:31 pm
Forum: Personal Consumer Issues
Topic: Lively's HSA debit card
Replies: 1
Views: 289

Re: Lively's HSA debit card

You need to check the procedure with the bank which issued the card. Chargebacks are legally allowed only for credit cards, and only on money you haven't already paid. Banks often extend similar protections to debit card holders, but they are not required to do so. You may also have independent righ...
by grabiner
Mon Oct 29, 2018 10:17 pm
Forum: Personal Finance (Not Investing)
Topic: Invest or Pay off Car Loan?
Replies: 19
Views: 1436

Re: Invest or Pay off Car Loan?

I'm starting to think of the upcoming bonus payout. After paying off some nominal cc / heloc debt, the remaining funds will be available to either invest or pay off the existing car loan (and maybe some play money :D) Monthly pmt 1261 Remaining tenor 2yrs Rate 1.99 At that rate, I would invest in a...
by grabiner
Mon Oct 29, 2018 10:11 pm
Forum: Personal Finance (Not Investing)
Topic: Speeding ticket and insurance
Replies: 29
Views: 2254

Re: Speeding ticket and insurance

(0) I have GEICO. I'm wondering what the likelihood they will raise my rates and by how much. Any data points here? I was going 45mph in a 35mph zone Your insurance policy should have a section "Rating information," which indicates what will affect your rates. I had one policy which said, "A moving...
by grabiner
Mon Oct 29, 2018 9:52 pm
Forum: Investing - Theory, News & General
Topic: CA Muni ETF?
Replies: 2
Views: 288

Re: CA Muni ETF?

Welcome to the forum! There is the VCAIX Mutual fund but no ETF version of it. Anybody know why? maybe there just not enough demand for it? The fund is not an index; most ETFs track indexes. Even for national munis, the only Vanguard fund with an ETF class is the index fund. (Vanguard's muni funds a...
by grabiner
Mon Oct 29, 2018 9:44 pm
Forum: Investing - Help with Personal Investments
Topic: Target Funds & Dividends/Interest
Replies: 6
Views: 827

Re: Target Funds & Dividends/Interest

On this question: I hold a target date fund and I'm "waiting" to break it into a three fund portfolio after yearly dividends. Last time I checked, the three fund (total indexes) pays every three months (except for total bond) so I'm waiting for yearly dividends from the 2060 target. Is this wise, o...
by grabiner
Mon Oct 29, 2018 9:39 pm
Forum: Investing - Help with Personal Investments
Topic: Unique TLH question... maybe
Replies: 11
Views: 1016

Re: Unique TLH question... maybe

About a month ago I posted a question ( https://www.bogleheads.org/forum/viewtopic.php?f=1&t=259794&p=4135947 ) on minimizing old taxable accounts for simplicity, and due to higher than normal fees. For reference, I have roughly $6k in Vanguard Explorer long-term gains (VEXPX - ER 0.44) that I woul...
by grabiner
Mon Oct 29, 2018 9:26 pm
Forum: Investing - Help with Personal Investments
Topic: BND vs VTEAX in a taxable account [Vanguard Total vs. Tax-Exempt Bond]
Replies: 4
Views: 429

Re: BND vs VTEAX in a taxable account

] Effective federal tax rate last year was 26% I live in Michigan, so state tax rate is 4.25% Investment horizon is at least 15 years, and will probably remain in Michigan for that time frame. Marginal tax rate is more important, since that's what you're making decisions based on -- each dollar from...
by grabiner
Mon Oct 29, 2018 9:24 pm
Forum: Investing - Help with Personal Investments
Topic: inherited IRA
Replies: 14
Views: 1333

Re: inherited IRA

Welcome to the forum! Friendly neighborhood Bogleheads, I inherited my aunts IRA to the tune of $112k, which I am very grateful to have. I enrolled in Vanguard Personal Advisor, which they put me in 84.9% in stocks and 6.3 % in bonds. VTSAX VTIAX VTABX VBTLX In this market, I am truly worried about ...
by grabiner
Mon Oct 29, 2018 9:20 pm
Forum: Investing - Help with Personal Investments
Topic: Target Funds & Dividends/Interest
Replies: 6
Views: 827

Re: Target Funds & Dividends/Interest

Mutual funds hold on to any dividends and interest they receive from their holdings, reinvesting the money until it is paid out. I would expect the target-date funds to reinvest the dividends they receive from the underlying funds back into those funds. Similarly, if you, as a target-date fundholder...
by grabiner
Mon Oct 29, 2018 9:10 pm
Forum: Investing - Theory, News & General
Topic: Debunking Bonds in Taxable
Replies: 99
Views: 10380

Re: Debunking Bonds in Taxable

I personally won't do it because I may not want to wait till retirement to use may taxable funds. Right. That's my reason for keeping most of the bonds in taxable space, and you are first to mention it. Money is not fungible, there is a 10% penalty to take it out of tax-disadvantaged accounts. I ha...
by grabiner
Mon Oct 29, 2018 8:59 pm
Forum: Investing - Help with Personal Investments
Topic: Help with Tax Loss Harvesting for VWO
Replies: 21
Views: 1506

Re: Help with Tax Loss Harvesting for VWO

Planning to sell VWO tomorrow morning and then need to decide if I buy VXUS or IEMG. Based upon my holdings, I will be buying $92K worth of IEMG; how much extra dividend Tax I will be paying if I do not keep it for 61 days? You'll have to see what the actual dividend is, but last year, the December...
by grabiner
Sun Oct 28, 2018 8:53 pm
Forum: Investing - Theory, News & General
Topic: Evaluating Tax Efficiency of Index Funds and ETFs
Replies: 7
Views: 591

Re: Evaluating Tax Efficiency of Index Funds and ETFs

Also, looking at the TCR for assessing how tax-efficient Tax-exempt bond funds are is a mistake. The correct analysis is to look at tax-equivalent yields for both taxable and tax-exempt bonds. Taxable bonds may be very tax inefficient in the sense that more income tax is owed, but still possess a h...
by grabiner
Sun Oct 28, 2018 8:32 pm
Forum: Investing - Help with Personal Investments
Topic: Help! Pick which stocks to sell off
Replies: 11
Views: 979

Re: Help! Pick which stocks to sell off

I was recently gifted a number of stocks. Each has fairly significant long-term capital gains. I would be paying 15% in capital gains by selling off some. I have about $60,000 in tax loss harvesting this year so far. How would you do this? Better to focus on paying no additional taxes / sell off on...
by grabiner
Sun Oct 28, 2018 8:27 pm
Forum: Investing - Help with Personal Investments
Topic: Tax Loss Harvesting strategy Advise on how not to use Short Term Loss to offset Long Term Gain
Replies: 6
Views: 1079

Re: Tax Loss Harvesting strategy Advise on how not to use Short Term Loss to offset Long Term Gain

You could wait until 2019 to take your excess short-term loss, and take all your long-term gain in 2018. You would then be able to use the excess short-term loss to offset ordinary income for years. I don't recommend this, though. The market might rise in the last two months of 2018, wiping out the ...
by grabiner
Sun Oct 28, 2018 8:22 pm
Forum: Investing - Help with Personal Investments
Topic: Does anyone provided automatic TLH for high net worth clients?
Replies: 3
Views: 598

Re: Does anyone provided automatic TLH for high net worth clients?

TLH is something that is sometimes better done yourself. The firms that clearly offer automatic TLH, Betterment and Wealthfront, do it under their rules. As an example, I will wait for a 10% loss before harvesting an ETF loss; most other investors should set a lower limit. My reasons: The ETFs I wo...
by grabiner
Sun Oct 28, 2018 7:58 pm
Forum: Investing - Help with Personal Investments
Topic: Double taxation
Replies: 6
Views: 1328

Re: Double taxation

It is possible to get double taxed if you didn't set it up right. That is, if both states consider you a taxable permanent resident simultaneously (due to different metrics used to determine this), you may have to pay taxes to both. Even if you are a dual resident, you will usually get a tax credit...
by grabiner
Sun Oct 28, 2018 7:34 pm
Forum: Investing - Help with Personal Investments
Topic: All-in-one funds vs tax efficient allocation
Replies: 5
Views: 735

Re: All-in-one funds vs tax efficient allocation

Besides the tax difference, LifeStrategy Growth has an extra cost for you because of the lack of Admiral shares. At your age, the 0.1% per year may be 4% lost if you hold the fund until you sell it at some time in your retirement. This might make it worth selling even for a capital gain. But if you ...
by grabiner
Sun Oct 28, 2018 5:33 pm
Forum: Personal Finance (Not Investing)
Topic: sold condo that was given to me, taxes owed?
Replies: 17
Views: 1376

Re: sold condo that was given to me, taxes owed?

For determining basis, I would need to factor in what they paid for the property and then subtract any expenses over the years that they owned it? In other words, what goes into determining the basis? Any improvements to the property are part of the basis; maintenance is not. For example, remodelin...
by grabiner
Sun Oct 28, 2018 5:28 pm
Forum: Personal Finance (Not Investing)
Topic: Beginner Tax-Loss Harvesting Situation
Replies: 8
Views: 722

Re: Beginner Tax-Loss Harvesting Situation

The VCITX shares I bought on Oct 15, 18, and 21 would be considered replacement shares right? This is correct. To avoid a wash sale, sell these lots at the same time as you sell your other lots; you'll take a small gain on these lots, but be able to deduct a larger loss. (If your gain per share on ...
by grabiner
Sun Oct 28, 2018 5:27 pm
Forum: Personal Finance (Not Investing)
Topic: DRG remark on TransUnion credit report
Replies: 3
Views: 517

Re: DRG remark on TransUnion credit report

Have you noticed it affecting your credit score at all? That would be an indicator to me whether or not there was any real derogatory information associated with the remark. I once wrote credit scoring software for a living and all remarks were simply ignored. I don't have much experience on the cr...
by grabiner
Sun Oct 28, 2018 5:18 pm
Forum: Personal Finance (Not Investing)
Topic: why split property tax payment with SALT limit; why itemize?
Replies: 19
Views: 2289

Re: why split property tax payment with SALT limit; why itemize?

Can anyone confirm if this is true for 2018 California Tax Return if I don't itemize Federal Tax Return? I might have to collect and report all the small itemization deduction items after all to optimize state tax return. Itemize Deductions on the State Level If the itemized deductions for your sta...
by grabiner
Sun Oct 28, 2018 5:05 pm
Forum: Personal Finance (Not Investing)
Topic: Vanguard thinks I have a wash sale. Do I?
Replies: 36
Views: 3318

Re: Vanguard thinks I have a wash sale. Do I?

It looks like what happened is that you bought on 8/20, bought on 9/28, sold both, and Vanguard processed the sale as two transactions. If you sold the 8/20 shares while still holding the 9/28 shares, that was a wash sale. And in the eyes of Vanguard's computer, that is what you did, because it proc...
by grabiner
Sun Oct 28, 2018 2:12 pm
Forum: Investing - Help with Personal Investments
Topic: realized capital gain on VBILX
Replies: 7
Views: 714

Re: realized capital gain on VBILX

The capital gain distribution is not a gain to the shareholder; the fund price drops by the amount of the distribution. ah ok, got it. I see the cap gains distribution for VBILX is usually made around Dec 20-22 looking at it historically. Also VBTLX does not have any cap gains distributions. So, if...
by grabiner
Sun Oct 28, 2018 11:17 am
Forum: Investing - Theory, News & General
Topic: PhysicianOnFire blog: "Tax Loss Harvesting with Vanguard: A Step by Step Guide"
Replies: 82
Views: 9159

Re: PhysicianOnFire blog: "Tax Loss Harvesting with Vanguard: A Step by Step Guide"

What's the difference between short term and long term losses for TLH? If you have both short-term and long-term gains, short-term losses offset short-term gains, and long-term losses offset long-term gains. If you still have both losses and gains, losses will offset gains of the other time. Thus s...
by grabiner
Sun Oct 28, 2018 10:41 am
Forum: Personal Finance (Not Investing)
Topic: [Help with Tax Loss Harvesting]
Replies: 2
Views: 176

Re: [Help with Tax Loss Harvesting]

The reinvest date is the date that you bought the shares with your reinvested dividend; you can check your account records to confirm that the purchase was made on that date. That is the date which is relevant for wash sales. But you can avoid a wash sale by selling the shares purchased on the reinv...
by grabiner
Sun Oct 28, 2018 10:35 am
Forum: Investing - Help with Personal Investments
Topic: realized capital gain on VBILX
Replies: 7
Views: 714

Re: realized capital gain on VBILX

one q - does anyone who buys the fund prior to the cap gain distribution date get it? 0 27/share is pretty significant and I could see how someone could just buy into the fund to get ab immediate return, perhaps I'm missing something! The capital gain distribution is not a gain to the shareholder; ...
by grabiner
Sun Oct 28, 2018 10:32 am
Forum: Investing - Help with Personal Investments
Topic: Help with Tax Loss Harvesting for VWO
Replies: 21
Views: 1506

Re: Help with Tax Loss Harvesting for VWO

If you move VWO to SCHE, you have paid 80% of the VWO dividend in 2018, and you will pay 100% of the SCHE dividend in December. Total ~180% If you move VWO to IEMG, you have paid 80% of the VWO dividend, and you will pay ~73% of the annual IEMG dividend in December. Total ~153% Assuming you expect ...
by grabiner
Sun Oct 28, 2018 10:26 am
Forum: Personal Finance (Not Investing)
Topic: To those who avoid FICA with HSA payroll contributions
Replies: 51
Views: 8600

Re: To those who avoid FICA with HSA payroll contributions

I would be shocked if I pass the second bend point. That's a a salary of over $70k for 35 years. Does that mean I shouldn't avoid FICA with HSA? Remember that salaries are adjusted for inflation; you can see the inflation adjustments on the SSA web site. But if you are below the second bend point, ...
by grabiner
Sat Oct 27, 2018 4:47 pm
Forum: Personal Finance (Not Investing)
Topic: To those who avoid FICA with HSA payroll contributions
Replies: 51
Views: 8600

Re: To those who avoid FICA with HSA payroll contributions

I would be shocked if I pass the second bend point. That's a a salary of over $70k for 35 years. Does that mean I shouldn't avoid FICA with HSA? Remember that salaries are adjusted for inflation; you can see the inflation adjustments on the SSA web site. But if you are below the second bend point, ...
by grabiner
Sat Oct 27, 2018 4:44 pm
Forum: Investing - Help with Personal Investments
Topic: Help with Tax Loss Harvesting for VWO
Replies: 21
Views: 1506

Re: PhysicianOnFire blog: "Tax Loss Harvesting with Vanguard: A Step by Step Guide"

* I sell all 4 losing assets and take $40000 short-term loss. * Then use $22000 from that short-term loss to offset my short-term gain of $22000 this tax year and save roughly $8800 tax (based on my ordinary income tax). * Use rest of the short-term loss $18000 to offset that amount from my long-te...
by grabiner
Fri Oct 26, 2018 10:14 pm
Forum: Personal Finance (Not Investing)
Topic: Mortgage payoff or save for next car?
Replies: 12
Views: 1069

Re: Mortgage payoff or save for next car?

If you can't deduct your mortgage interest, the mortgage rate is probably higher than the rate you will pay on your next year if you need to take out a loan. Paying down a 4.5% loan now and needing to take out a 3% loan later is a good deal. If you do take out a car loan, you can then decide which l...
by grabiner
Fri Oct 26, 2018 10:07 pm
Forum: Investing - Theory, News & General
Topic: Thoughts on Peferred Stock ETF (PFF or PGX) in rising interest rate environment
Replies: 5
Views: 448

Re: Thoughts on Peferred Stock ETF (PFF or PGX) in rising interest rate environment

In addition to the risk of non-payment (which is correlated with the stock-market risk of the rest of your portfolio), you have the interest-rate risk of an infinite-maturity bond, which means that the duration is the reciprocal of the interest rate, which is 18 years at your 5.6% yield. Is the high...
by grabiner
Fri Oct 26, 2018 9:41 pm
Forum: Investing - Help with Personal Investments
Topic: Short term tax efficiency
Replies: 4
Views: 446

Re: Short term tax efficiency

The advantage of using taxable stock is that you keep a higher fraction of the market return. If you hold a stock fund, you will lose 15% of the gains to taxes, and only on the shares you sell; if the market booms or you buy a less expensive house, you will keep the stock for future tax-deferred gro...
by grabiner
Fri Oct 26, 2018 9:18 pm
Forum: Investing - Theory, News & General
Topic: PhysicianOnFire blog: "Tax Loss Harvesting with Vanguard: A Step by Step Guide"
Replies: 82
Views: 9159

Re: PhysicianOnFire blog: "Tax Loss Harvesting with Vanguard: A Step by Step Guide"

$1,000 is not a "low threshold" for tax-loss harvesting. Anyone would pick-up a $1,000 bill lying on the sidewalk. However, harvesting a $1000 loss is not worth $1000; in a 24% tax bracket, it is worth $240 in the year you get the deduction, reduced by $150 in the year you sell the replacement shar...
by grabiner
Fri Oct 26, 2018 9:07 pm
Forum: Personal Finance (Not Investing)
Topic: To those who avoid FICA with HSA payroll contributions
Replies: 51
Views: 8600

Re: To those who avoid FICA with HSA payroll contributions

grabinger, thank you so much. If only you work, you are above the second bend point but your spouse will get half your benefit while you are alive and all of it after your death, so again you would be better off with payroll deduction. This is correct today, although my wife will probably start wor...
by grabiner
Fri Oct 26, 2018 8:59 pm
Forum: Investing - Help with Personal Investments
Topic: International Index Funds in Taxable -- Qualified Dividends
Replies: 5
Views: 832

Re: International Index Funds in Taxable -- Qualified Dividends

Chip wrote:
Fri Oct 26, 2018 2:38 am
Schwab's SCHF developed market fund had 85% QDI in 2017 and 90% QDI in 2016.
One reason Vanguard's VEA/Developed Markets Index has less is that it includes small-caps.
by grabiner
Thu Oct 25, 2018 10:03 pm
Forum: Investing - Theory, News & General
Topic: Bonds in taxable
Replies: 2
Views: 422

Re: Bonds in taxable

I see many people in high tax brackets using short-term muni bonds such as VMLUX for the safe portion of their taxable portfolio. What’s the rationale behind that? Wouldn’t they be better off with tax-exempt money market funds or treasury bills? A fund like Limited-Term Tax-Exempt has a bit of risk...
by grabiner
Thu Oct 25, 2018 9:56 pm
Forum: Investing - Help with Personal Investments
Topic: Specific Question about ST Bond fund vs MM
Replies: 5
Views: 632

Re: Specific Question about ST Bond fund vs MM

I know VGSH would be state tax free. From reading this forum, I know if a fund is combined treasury and corporate bonds it can be tricky. I was also curious about BSV. Short term bond fund. I live in NY. I am having a hard time finding what percent of the bond fund needs to be treasury for that por...
by grabiner
Thu Oct 25, 2018 9:52 pm
Forum: Investing - Help with Personal Investments
Topic: Holding Period Question for Tax Loss Harvesting and Qualified Dividends
Replies: 4
Views: 366

Re: Holding Period Question for Tax Loss Harvesting and Qualified Dividends

Fidelity can't accurately report dividends as qualified or non-qualified until the ETF provider makes its own determination at the end of the year. The ETF provider might make an estimate during the year, but any number Fidelity reports would have to be an estimate, and most providers probably won't...
by grabiner
Thu Oct 25, 2018 9:41 pm
Forum: Investing - Help with Personal Investments
Topic: Vanguard Wellesley alternative for taxable acct?
Replies: 7
Views: 1476

Re: Vanguard Wellesley alternative for taxable acct?

I just went through this same exercise (was holding Wellesley in taxable). After much gnashing of teeth and backtesting on portfoliovisualizer.com, I ultimately moved all of my taxable VWINX to 60% VSIGX (intermediate-term treasuries) / 40% VTSAX (total stock market). This approximates the allocati...
by grabiner
Thu Oct 25, 2018 9:37 pm
Forum: Investing - Help with Personal Investments
Topic: International Index Funds in Taxable -- Qualified Dividends
Replies: 5
Views: 832

Re: International Index Funds in Taxable -- Qualified Dividends

Here's Vanguard's data from last year: Qualified dividend income--2017 year-end figures . As a general rule, small-cap and emerging markets have fewer qualified dividends; FTSE All-World Ex-US Small-Cap and Emerging Markets Index are usually around 1/2 qualified, while large-cap developed markets ar...
by grabiner
Thu Oct 25, 2018 9:34 pm
Forum: Investing - Help with Personal Investments
Topic: realized capital gain on VBILX
Replies: 7
Views: 714

Re: realized capital gain on VBILX

A bond fund realizes a gain when it sells a bond for a higher price than it paid, because interest rates have fallen since the bond was bought. In a taxable bond fund, this is actually good for investors, as when it sold the bond, it bought a lower-yielding bond which pays less in dividends than the...
by grabiner
Thu Oct 25, 2018 9:23 pm
Forum: Investing - Help with Personal Investments
Topic: Taking Equity out of Rental Property to Invest
Replies: 7
Views: 694

Re: Taking Equity out of Rental Property to Invest

You need to look at the rate you will be paying, and whether this is an appropriate risk-adjusted level. If you are in a 24% tax bracket, taking out a long-term loan at 5% costs you 3.80% after tax (if it is deductible; check with your tax advisor if the loan is not used to buy or improve the rental...
by grabiner
Thu Oct 25, 2018 9:10 pm
Forum: Personal Finance (Not Investing)
Topic: To those who avoid FICA with HSA payroll contributions
Replies: 51
Views: 8600

Re: To those who avoid FICA with HSA payroll contributions

Is there a good rule of thumb that helps you determine if you should do HSA contributions through payroll to get the FICA reduction (but lower future Social Security benefits) or making a direct contribution outside of payroll so you pay FICA now? It is close to break-even if you are single and are...
by grabiner
Wed Oct 24, 2018 9:34 pm
Forum: Personal Finance (Not Investing)
Topic: extra monthly cash - taxable or 4.75% building loan?
Replies: 2
Views: 419

Re: extra monthly cash - taxable or 4.75% building loan?

See Paying down loans versus investing on the wiki. You are in the 24% tax bracket, so a prepayment on the 4.75% loan would give you a 3.61% risk-free return after tax. You could earn 3.23% with less risk (duration 7 years versus 15) on Admiral shares of Vanguard Long-Term Tax-Exempt. So it's a clos...
by grabiner
Wed Oct 24, 2018 9:25 pm
Forum: Personal Finance (Not Investing)
Topic: Building Mortgages, which to payoff first
Replies: 16
Views: 835

Re: Building Mortgages, which to payoff first

To me paying off an office building is more than just loan interest rate return. It is the loan interest rate return plus the additional value of my rent check I receive above the mortgage value. Maybe I am looking at it wrong though. You are, because you are going to get the rent whether you pay d...