Search found 3241 matches

by Artsdoctor
Fri Apr 13, 2018 8:06 pm
Forum: Investing - Help with Personal Investments
Topic: Anyone in high bracket switching to muni. Money market?
Replies: 17
Views: 1759

Re: Anyone in high bracket switching to muni. Money market?

BlackcatCA wrote:
Fri Apr 13, 2018 7:44 pm
Thanks for reminding about NIIT for TEY calculations. Does T-bill interest exempt from NIIT also?
NIIT is only applicable on your federal return. Your T-bill interest is part of your AGI on your federal return (but it's not included on the state return).
by Artsdoctor
Fri Apr 13, 2018 8:04 pm
Forum: Investing - Theory, News & General
Topic: 2-year AA Munis at Vanguard and Fidelity Today
Replies: 134
Views: 8853

Re: 2-year AA Munis at Vanguard and Fidelity Today

@Kevin Re: Kaiser bonds I hope you do realize that you bought the bonds above par, and upon maturity in a year, in total return, you will be losing money. He has bought a premium bond. He will get his money back in the forms of interest payments, and he'll amortize the bond accordingly. When you're...
by Artsdoctor
Fri Apr 13, 2018 5:37 pm
Forum: Investing - Theory, News & General
Topic: 2-year AA Munis at Vanguard and Fidelity Today
Replies: 134
Views: 8853

Re: 2-year AA Munis at Vanguard and Fidelity Today

@Kevin Re: Kaiser bonds I hope you do realize that you bought the bonds above par, and upon maturity in a year, in total return, you will be losing money. He has bought a premium bond. He will get his money back in the forms of interest payments, and he'll amortize the bond accordingly. When you're...
by Artsdoctor
Fri Apr 13, 2018 5:32 pm
Forum: Investing - Help with Personal Investments
Topic: Anyone in high bracket switching to muni. Money market?
Replies: 17
Views: 1759

Re: Anyone in high bracket switching to muni. Money market?

There's a bit of a difference between money market funds and short-term (or limited-term) muni funds. Take a look at the duration of the bond funds; your short-term fund won't change much, although the limited-term fund could. But the OP is asking about the muni money market funds, which would defin...
by Artsdoctor
Thu Apr 12, 2018 8:40 pm
Forum: Investing - Theory, News & General
Topic: 2-year AA Munis at Vanguard and Fidelity Today
Replies: 134
Views: 8853

Re: 2-year AA Munis at Vanguard and Fidelity Today

Kevin, I agree with your assessment on every level. I've bought munis for many years at both Vanguard and Fidelity, and Fidelity will often have a better selection. You can buy at auction with Fidelity as well, if you're every interested. Like you, Larry was extremely helpful in giving me confidence...
by Artsdoctor
Wed Apr 11, 2018 1:36 pm
Forum: Investing - Theory, News & General
Topic: iShares ETFs - International Investing
Replies: 5
Views: 525

Re: iShares ETFs - International Investing

While most of my portfolio is at Vanguard, I have a substantial number of assets at Fidelity. Trading iShares is free at Fidelity so I started using IXUS years ago because I felt it provided a very reasonable array of broad international exposure. I don't think you need to tease out individual compo...
by Artsdoctor
Tue Apr 10, 2018 6:18 pm
Forum: Investing - Help with Personal Investments
Topic: Contribute to 401k or Roth IRA
Replies: 8
Views: 541

Re: Contribute to 401k or Roth IRA

My wife and I file taxes jointly and are squarely within the new 22% federal tax bracket, whether we contribute to my 401k or not. Currently, we fully contribute to our HSA and contribute the full $24,500 to my 401k. I am 52 and plan to retire at 62 to 65, not take SS until 70, and use the time bet...
by Artsdoctor
Tue Apr 10, 2018 4:23 pm
Forum: Investing - Help with Personal Investments
Topic: Wash Sale Question
Replies: 5
Views: 220

Re: Wash Sale Question

Yes, it would be considered a wash sale:

https://www.investopedia.com/articles/r ... e-rule.asp
by Artsdoctor
Mon Apr 09, 2018 11:22 pm
Forum: Investing - Help with Personal Investments
Topic: Vangaurd Municipal Money Market VMSXX 1.39%
Replies: 72
Views: 6615

Re: Vangaurd Municipal Money Market VMSXX 1.39%

Just noticed that Vangaurd Municipal Money Market VMSXX is up to 1.39%. In the 35% tax bracket, that is a tax-equivalent yield of 2.14%! This significantly beats the high rate online savings accounts I have at 1.8% and 1.6%. Is VMSXX FDIC insured? If not, should I worry about that? Thanks in advanc...
by Artsdoctor
Mon Apr 09, 2018 1:47 pm
Forum: Investing - Theory, News & General
Topic: Post your TLH success / failures
Replies: 6
Views: 636

Re: Post your TLH success / failures

The 2008-2009 meltdown was brutal and, with the help of Bogleheads, I tax-loss harvested all the way to the bottom in March 2009. The carryover losses were pretty staggering, I have to admit. For the last 10 years, I've had a perpetual $3,000 loss on my federal and state income tax forms, and my cap...
by Artsdoctor
Thu Apr 05, 2018 9:13 am
Forum: Investing - Theory, News & General
Topic: State Muni Funds
Replies: 10
Views: 1229

Re: State Muni Funds

There has to be demand and there has to be bonds. But you'd also WANT diversification. The national intermediate muni fund has over 7500 bonds, just for perspective. The CA intermediate muni fund has nearly 3500 bonds. On the other hand, the OH, MA, and NJ long-term muni funds have about 500 bonds ...
by Artsdoctor
Wed Apr 04, 2018 4:41 pm
Forum: Personal Consumer Issues
Topic: VHCOL Home Buying Advice (Bay Area, where else?)
Replies: 65
Views: 5116

Re: VHCOL Home Buying Advice (Bay Area, where else?)

I wouldn't just look at the selling cost of the house; that will come later. I'd first figure out your monthly payment is going to be. It's your first house so it's not unusual to over-extend yourself in a VHCOLA. When we bought our first house, we had 80% financing plus 10% financing at a slightly ...
by Artsdoctor
Wed Apr 04, 2018 2:01 pm
Forum: Personal Finance (Not Investing)
Topic: NY passes law to get around SALT limit
Replies: 47
Views: 5818

Re: NY passes law to get around SALT limit

They say that "timing is everything" although I'm still not clear how some tax relief could be thwarted by a well-crafted program. As I posted above, CA has been offering this program, which is different from the NY program but with a similar end result, since 2014. They have awarded up to nearly $1...
by Artsdoctor
Wed Apr 04, 2018 12:36 pm
Forum: Personal Finance (Not Investing)
Topic: NY passes law to get around SALT limit
Replies: 47
Views: 5818

Re: NY passes law to get around SALT limit

This concept is not new although the details are varied. We have had this in California for several years: https://www.ftb.ca.gov/individuals/College_Access_Tax_Credit.shtml I think there is plenty of wiggle room when it comes to changing around the percentages, but I don't see how the IRS would arg...
by Artsdoctor
Wed Apr 04, 2018 11:46 am
Forum: Investing - Help with Personal Investments
Topic: Large capital loss
Replies: 14
Views: 1084

Re: Large capital loss

Do you live in a high cost of living area? Has your real estate appreciated beyond the $250K/$500K limit? If so, that's your large capital gain if you'd like to sell.
by Artsdoctor
Tue Apr 03, 2018 4:50 pm
Forum: Investing - Theory, News & General
Topic: State Muni Funds
Replies: 10
Views: 1229

Re: State Muni Funds

There has to be demand and there has to be bonds. But you'd also WANT diversification. The national intermediate muni fund has over 7500 bonds, just for perspective. The CA intermediate muni fund has nearly 3500 bonds. On the other hand, the OH, MA, and NJ long-term muni funds have about 500 bonds e...
by Artsdoctor
Tue Apr 03, 2018 4:22 pm
Forum: Investing - Theory, News & General
Topic: William Bernstein: Retirement Investing and Spending in two easy steps
Replies: 77
Views: 9319

Re: William Bernstein: Retirement Investing and Spending in two easy steps

The “stop playing” meme came from an article I wrote for the WSJ a few years back. They only gave me 800 words, and that doesn’t leave a lot of room for nuance or detail. If they’d have given me 5,000 words, here’s what I’d have added: 1) All-TIPS is for the part of your portfolio that you need to ...
by Artsdoctor
Tue Apr 03, 2018 12:57 pm
Forum: Investing - Help with Personal Investments
Topic: Delaying HSA W/D as Long as Possible -- HSA funds on death?
Replies: 9
Views: 868

Re: Delaying HSA W/D as Long as Possible -- HSA funds on death?

^ I like this step-wise approach although I'd add that if you're charitably inclined, you can leave your HSA to a charity if there's no spouse. This is especially smart if you're going to leave something to a charity anyway, because leaving the HSA to that charity will allow funds elsewhere to be tr...
by Artsdoctor
Mon Apr 02, 2018 5:17 pm
Forum: Investing - Help with Personal Investments
Topic: Wash sale question- are ITOT and VTI Substantially Identical?
Replies: 60
Views: 3684

Re: Wash sale question- are ITOT and VTI Substantially Identical?

I will admit that I am not an IRS agent. I have always interpreted the wash sale "spirit of the law" as meaning that you may "get stuck" with something, meaning that there has been "risk" (i.e., "getting stuck" with the large cap fund). I had no way of knowing in March, 2009, that it was the nadir ...
by Artsdoctor
Sat Mar 31, 2018 4:39 pm
Forum: Investing - Help with Personal Investments
Topic: Wash sale question- are ITOT and VTI Substantially Identical?
Replies: 60
Views: 3684

Re: Wash sale question- are ITOT and VTI Substantially Identical?

No. During the 2008-2009 meltdown, I tax-loss harvested to a degree that I had never done before (or since). I wound up TLH-ing in early March, at the nadir, to the Large Cap Stock index. I was never really able to sell at a loss so I've kept it and gradually transferred it to my Donor Advised Fund...
by Artsdoctor
Fri Mar 30, 2018 8:29 pm
Forum: Investing - Help with Personal Investments
Topic: Fidelity Money Market Funds for everyday expenses
Replies: 8
Views: 1870

Re: Fidelity Money Market Funds for everyday expenses

If you can, the Fidelity Money Market Fund [Premium Class] has a current yield of 1.66%. It'll cost you to get in and there is a minimum balance, but you can easily spend down quickly after you open it, so you don't have to tie up large sums. In reality, unless you're talking about huge sums of mone...
by Artsdoctor
Fri Mar 30, 2018 8:20 pm
Forum: Investing - Help with Personal Investments
Topic: Wash sale question- are ITOT and VTI Substantially Identical?
Replies: 60
Views: 3684

Re: Wash sale question- are ITOT and VTI Substantially Identical?

Nobody knows. There is probably no issue but what's the point of sailing close to the wind? It's only for 31 days. How different can the returns for one month between Total Stock and an S&P 500 ETF like SPY or VOO possibly be? It can't possibly matter much--and yet surely there are substantially di...
by Artsdoctor
Fri Mar 30, 2018 5:28 pm
Forum: Investing - Help with Personal Investments
Topic: Max 401(k) before ROTH IRA?
Replies: 12
Views: 797

Re: Max 401(k) before ROTH IRA?

^ At the end of the day, you're going to want tax diversification. You're going to ideally have a taxable account, a tax-deferred account, a Roth, and an HSA. The whole idea is to pick and choose how you want to tap your resources later. It doesn't matter to me how you get those accounts, but you're...
by Artsdoctor
Fri Mar 30, 2018 5:23 pm
Forum: Investing - Help with Personal Investments
Topic: Wash sale question- are ITOT and VTI Substantially Identical?
Replies: 60
Views: 3684

Re: Wash sale question- are ITOT and VTI Substantially Identical?

Nobody knows. There is probably no issue but what's the point of sailing close to the wind? It's only for 31 days. How different can the returns for one month between Total Stock and an S&P 500 ETF like SPY or VOO possibly be? It can't possibly matter much--and yet surely there are substantially di...
by Artsdoctor
Fri Mar 30, 2018 12:14 pm
Forum: Investing - Help with Personal Investments
Topic: Max 401(k) before ROTH IRA?
Replies: 12
Views: 797

Re: Max 401(k) before ROTH IRA?

for most people they should max out their 401k before they max out their roth because they will likely retire at a lower income bracket than their working years. Not necessarily. The marginal tax brackets are very different now than they were a year ago, so I cannot agree with your comment. The OP'...
by Artsdoctor
Thu Mar 29, 2018 7:50 pm
Forum: Investing - Theory, News & General
Topic: Muni bonds and WSJ article.
Replies: 12
Views: 1566

Re: Muni bonds and WSJ article.

To summarize article in today’WSJ, more and more of city and state budgets are consumed by medicaid and pension obligations. States such as Illinois is bordering on bankruptcy and cities are receiving less funding from states in order to balance their budgets. Does this raise any concern by Bogelhe...
by Artsdoctor
Thu Mar 29, 2018 10:17 am
Forum: Investing - Help with Personal Investments
Topic: IRMAA and Roth Conversions
Replies: 21
Views: 1238

Re: IRMAA and Roth Conversions

There are plenty of articles helping you with this, but I've found that Kitces does a great synopsis: https://www.kitces.com/blog/irmaa-medicare-part-b-part-d-premium-surcharges-new-2018-magi-thresholds/ As others have mentioned, the IRMAA brackets are rigid so if you're over by $1, you're in the ne...
by Artsdoctor
Thu Mar 29, 2018 10:07 am
Forum: Personal Finance (Not Investing)
Topic: Lowest Fees Donor Advised Fund?
Replies: 11
Views: 661

Re: Lowest Fees Donor Advised Fund?

I use Fidelity because it allows grants as small as $50. Yes - our choice as well If the amounts planned for a DAF are large enough, you could have both Vanguard and Fidelity. Use Vanguard for larger balances and grants, and Fidelity for lower ones. Yes. This is the best option for me as well (usin...
by Artsdoctor
Thu Mar 29, 2018 10:03 am
Forum: Investing - Theory, News & General
Topic: Muni Money Market funds starting to look good!
Replies: 139
Views: 23909

Re: Muni Money Market funds starting to look good!

Pardon my ignorance, but is there any reason to hold Vanguard Municipal Money Market Fund over Vanguard California Municipal Money Market Fund (VCTXX)? I live in California. I presume if I held Vanguard Municipal Money Market Fund may owe some states taxes on dividends since pooled from different s...
by Artsdoctor
Wed Mar 28, 2018 9:23 am
Forum: Investing - Theory, News & General
Topic: If investor adjusts Cost Basis, then do brokerages flag that change to IRS?
Replies: 5
Views: 614

Re: If investor adjusts Cost Basis, then do brokerages flag that change to IRS?

You will be given a 1099-B for your brokerage account which will list your sales. This information will also be reported to the IRS. On your federal tax return, you'll be entering the trades on Form 8949. Each trade should match your 1099-B if the trade involved covered shares. If the numbers don't ...
by Artsdoctor
Wed Mar 28, 2018 9:15 am
Forum: Investing - Help with Personal Investments
Topic: HSA from taxable state to non-taxable state
Replies: 5
Views: 435

Re: HSA from taxable state to non-taxable state

As above, you'll need to sever all of your ties to CA. It would be the cleanest break if you have no property, your driver's license changes, your voter registration changes, and you have established a residence (preferably with your job) in another state. If you have property in CA that you're goin...
by Artsdoctor
Tue Mar 27, 2018 7:33 pm
Forum: Investing - Help with Personal Investments
Topic: How to Determine Actual Muni Bond Return?
Replies: 71
Views: 4878

Re: How to Determine Actual Muni Bond Return?

Tread, You'll have to figure where your priorities are because there are some points which may be important and some not. First, think about individual bond traders this way, especially when it comes to munis. There are investors and there are dealers. There are experienced investors and there are i...
by Artsdoctor
Sun Mar 25, 2018 9:21 am
Forum: Personal Finance (Not Investing)
Topic: Reporting Interest on Schedule B
Replies: 14
Views: 847

Re: Reporting Interest on Schedule B

This seems like an obvious question, but do you report interest itemized per-account, or one total per institution? Obviously the amount will (probably) be different, so the issue is which number the IRS will see. So if you have twenty accounts at an institution, and they report to you the interest...
by Artsdoctor
Sat Mar 24, 2018 9:07 am
Forum: Investing - Help with Personal Investments
Topic: How to Determine Actual Muni Bond Return?
Replies: 71
Views: 4878

Re: How to Determine Actual Muni Bond Return?

Two things, just in passing. First, the credit ratings are decent for all of the spot checks which I did. Second, the bonds were purchased without regard to the state (in other words, you have multiple states represented). This is fine and gives you reasonable diversification. However, you'll need t...
by Artsdoctor
Fri Mar 23, 2018 10:40 am
Forum: Investing - Help with Personal Investments
Topic: Lump Sum in Taxable Account - Invest all at once or dollar cost average?
Replies: 42
Views: 2025

Re: Lump Sum in Taxable Account - Invest all at once or dollar cost average?

Lively discussion! The DCA versus lump sum debate is an old one and yet it still remains an emotional topic. Like most things, one would be better off not seeing the argument in black and white terms. Whether or not one likes to acknowledge it, the debate is always going to have some gray and you're...
by Artsdoctor
Thu Mar 22, 2018 5:53 pm
Forum: Investing - Help with Personal Investments
Topic: Lump Sum in Taxable Account - Invest all at once or dollar cost average?
Replies: 42
Views: 2025

Re: Lump Sum in Taxable Account - Invest all at once or dollar cost average?

^ LOL. True, we should clarify. What's "several" weeks? It's obviously more than two but less than many, but beyond that . . .
by Artsdoctor
Thu Mar 22, 2018 5:35 pm
Forum: Investing - Help with Personal Investments
Topic: Lump Sum in Taxable Account - Invest all at once or dollar cost average?
Replies: 42
Views: 2025

Re: Lump Sum in Taxable Account - Invest all at once or dollar cost average?

Dollar cost averaging never makes sense and is purely an emotional reaction. What is the difference between having $1M today in cash you want to invest, and $1M in equities in your 401k (no tax to sell) which have accumulated over 30 years? The answer? There is none. Any rationale reason to split t...
by Artsdoctor
Thu Mar 22, 2018 5:06 pm
Forum: Investing - Theory, News & General
Topic: Working till retirement is not a great plan
Replies: 175
Views: 13833

Re: Working till retirement is not a great plan

OP, 1) I am fighting a losing battle trying to wake people up that they are overly optimistic that they will be fully-employed until retirement age. 2) In most cases, younger professional at the 30s chooses to be "House Poor" and overpay for their houses. When they hit the 40s and faces their first...
by Artsdoctor
Thu Mar 22, 2018 4:58 pm
Forum: Personal Consumer Issues
Topic: Reporting fake Sonicare toothbrush heads?
Replies: 11
Views: 1232

Re: Reporting fake Sonicare toothbrush heads?

This has been going on for quite a while. I am big fan of Sonicare, both personally and professionally. I discovered the sham replacement heads on Amazon several years and I started buying them retail after that because it seemed the risk was extremely high of getting duds. I now recommend doing tha...
by Artsdoctor
Thu Mar 22, 2018 4:55 pm
Forum: Personal Finance (Not Investing)
Topic: Losing friends/family when wealthy
Replies: 118
Views: 10445

Re: Losing friends/family when wealthy

People can be very intuitive. I'm going to guess that you might be in a spiral here. Even though your words may not have been memorable or obvious, perhaps your actions sent mixed messages to certain family members or friends. Jealously is a common human trait and I wouldn't underestimate the import...
by Artsdoctor
Wed Mar 21, 2018 8:45 pm
Forum: Personal Finance (Not Investing)
Topic: elderly mother given 10 days to give IRS *transcript* to health insurance or lose benefits
Replies: 20
Views: 3636

Re: elderly mother given 10 days to give IRS *transcript* to health insurance or lose benefits

This is clearly outrageous. In the ideal world, you'd contact your state representative; this is what they're for. However, there's one question: is your state representative a reasonable person?
by Artsdoctor
Wed Mar 21, 2018 7:54 pm
Forum: Personal Finance (Not Investing)
Topic: Rent or Buy in Miami?
Replies: 20
Views: 1711

Re: Rent or Buy in Miami?

Rent. Only rent, in Miami.
by Artsdoctor
Wed Mar 21, 2018 7:47 pm
Forum: Personal Finance (Not Investing)
Topic: Home equity as part of retirement plan
Replies: 59
Views: 3747

Re: Home equity as part of retirement plan

Be aware that for some communities, the sale of your primary residence and purchase into a SR living community are not an exchange, allowing you to exclude the first $500K in long term capital gain from your proceeds. That is the case for my folks who had to buy into their SR living community. They...
by Artsdoctor
Wed Mar 21, 2018 7:45 pm
Forum: Personal Finance (Not Investing)
Topic: Home equity as part of retirement plan
Replies: 59
Views: 3747

Re: Home equity as part of retirement plan

Of course you count the home equity at the time it is realized if the plan is to sell the home. At that time you realize the equity into the invested assets and adjust your planned expenses to lose the cost of owning the home and add the cost of whatever arrangement you are going to make for housin...
by Artsdoctor
Wed Mar 21, 2018 7:29 pm
Forum: Investing - Help with Personal Investments
Topic: How to Determine Actual Muni Bond Return?
Replies: 71
Views: 4878

Re: How to Determine Actual Muni Bond Return?

Addendum: I've just re-read your thread in detail. Let me clarify. You are married to someone who's father gifted the two of you money, right? You're in your 30's so presumably this is to get you started, correct? The money is held at ML (Merrill Lynch), yes? If this is so, this is not just about mo...
by Artsdoctor
Wed Mar 21, 2018 7:11 pm
Forum: Investing - Help with Personal Investments
Topic: How to Determine Actual Muni Bond Return?
Replies: 71
Views: 4878

Re: How to Determine Actual Muni Bond Return?

Tread, Individual munis can be tricky at first. On one hand, you're not paying an ongoing expense ratio that you might if investing in a mutual fund, but there are several ways to be "fleeced" (for lack of a better word). You can certainly buy individual munis when they're auctioned and everyone wil...
by Artsdoctor
Wed Mar 21, 2018 2:51 pm
Forum: Investing - Help with Personal Investments
Topic: How to Determine Actual Muni Bond Return?
Replies: 71
Views: 4878

Re: How to Determine Actual Muni Bond Return?

Tread, You're in a bit of a mess here. First, you have investments you don't understand; second, the munis were gifted so you have the original owner's cost basis (I understand that these were gifted and not passed on from someone who died?). I would not sell your individual munis until you fully un...
by Artsdoctor
Wed Mar 21, 2018 1:07 pm
Forum: Personal Finance (Not Investing)
Topic: Home equity as part of retirement plan
Replies: 59
Views: 3747

Re: Home equity as part of retirement plan

#5: MAY need it. We're going to have to live somewhere. Although we'd love to stay in the house until our very last days, this will probably not be possible (a few more steps than I'd like). The equity can be used to buy another place, wherever that might be. I don't use the equity in the house in i...
by Artsdoctor
Wed Mar 21, 2018 1:03 pm
Forum: Investing - Theory, News & General
Topic: Do you Continue to invest even in down market??
Replies: 54
Views: 6491

Re: Do you Continue to invest even in down market??

Hello All, Simple question for most of you but I am new to investing outside of my 401k. Simply, do I continue to invest money when the stock prices are losing (declining) in my current portfolio? Do I change my allocation? Or ride it out and keep contributing? Should I only open a non retirement a...
by Artsdoctor
Tue Mar 20, 2018 1:00 pm
Forum: Investing - Theory, News & General
Topic: Allan Roth: Boosting Returns With Rebalancing
Replies: 11
Views: 1817

Re: Alan Roth: Boosting Returns With Rebalancing

One would probably want to examine the data surrounding rebalancing, rather than generalizing. https://personal.vanguard.com/pdf/ISGPORE.pdf If you get a bit of a gain with your rebalancing, it's nice. But I don't think you can say that rebalancing will consistently "boost returns." At least the dat...