Search found 245 matches

by ThisTimeItsDifferent
Sun Mar 29, 2015 9:21 am
Forum: Investing - Theory, News & General
Topic: 529 CO Stable Value Plus vs. EE Savings Bond
Replies: 3
Views: 684

Re: 529 CO Stable Value Plus vs. EE Savings Bond

The EE bonds are better if rates fall since they have a guaranteed yield to maturity. The CO rates could fall, requiring one to withdraw and look for better rates or leave the investment in and receive the lower rates. If market rates rise, then the CO fund is better because its internal rate would ...
by ThisTimeItsDifferent
Fri Mar 27, 2015 4:28 pm
Forum: Personal Investments
Topic: USAA Flexible Retirement Savings Annuity
Replies: 6
Views: 2376

Re: USAA Flexible Retirement Savings Annuity

Following up on my own post.... It appears that non-qualified (i.e. after tax, non-IRA) annuities treat non-annuitized withdrawals first as coming from earnings then from contributions. If it is truly "earnings withdrawn first" then making additional contributions converts the money contributed from...
by ThisTimeItsDifferent
Tue Mar 24, 2015 11:58 pm
Forum: Personal Investments
Topic: lump sum and dollar cost averaging
Replies: 95
Views: 12158

Re: lump sum and dollar cost averaging

I certainly see all the expected value returns and the rational probability arguments in favor of lump sum. However, nobody want to be the outlier that invests a singular large windfall in 1929 America or 1989 Nikkei. It's all statistics until you are one. It's certainly true also that the DCA only ...
by ThisTimeItsDifferent
Sat Mar 21, 2015 3:11 pm
Forum: Personal Finance (Not Investing)
Topic: Experience with Vanguard Annuities?
Replies: 46
Views: 4586

Vanguard vs USAA fixed annuities

I compared Vanguard SPIAs through their income solutions partner web site and found the payouts for immediate fixed annuities for life with a 10 or 15 year certain period for a senior citizen (f, 75) to be 5-10% higher than USAA's annuity calculator, and 1-2% higher than an immediate annuities websi...
by ThisTimeItsDifferent
Fri Mar 20, 2015 2:58 pm
Forum: Personal Investments
Topic: Bond Fund or Guaranteed 3%
Replies: 20
Views: 2819

Re: Bond Fund or Guaranteed 3%

I'm in a similar situation, or rather someone who asked for advice is, but with a guaranteed 3% tax-deferred fixed/flexible annuity account. https://www.bogleheads.org/forum/viewtopic.php?f=1&t=161149 Your comment that the low SEC yield on bond funds argues in favor of the 3% account is very interes...
by ThisTimeItsDifferent
Thu Mar 19, 2015 10:59 pm
Forum: Personal Investments
Topic: USAA Flexible Retirement Savings Annuity
Replies: 6
Views: 2376

Re: USAA Flexible Retirement Savings Annuity

She's 75, in moderate health, and lives in her own home (of modest value) with no mortgage. Some relatives have lived to 90, some have not. She's not planning to annuitize as long as she can meet her expenses with social security and the non-SS income stream. Withdrawing from the annuity would just ...
by ThisTimeItsDifferent
Thu Mar 19, 2015 11:30 am
Forum: Personal Investments
Topic: USAA Flexible Retirement Savings Annuity
Replies: 6
Views: 2376

Re: USAA Flexible Retirement Savings Annuity

Thanks. These annuities were purchased over 7 years ago. I have confirmed with the contract and USAA that the 3% guaranteed minimum interest rate does apply to the total balance including new contributions, even though new contributions in isolation get lower rates, 1.6-1.7%. Since the current inter...
by ThisTimeItsDifferent
Thu Mar 19, 2015 11:04 am
Forum: Personal Investments
Topic: T. Rowe Price Bond Index (PBDIX) and Vanguard Bond VBTLX
Replies: 23
Views: 3531

Re: T. Rowe Price Bond Index (PBDIX) and Vanguard Bond VBTLX

Thanks for the Morningstar links. I had not used them much before. Not only did they provide better (presumably correct :-) ) performance chart comparisons but also portfolio comparisons. I see VBTLX has more government bonds (US Treasury), PBDIX has more Securitized (MBS) bonds. Also, VBTLX has mor...
by ThisTimeItsDifferent
Tue Mar 17, 2015 11:53 am
Forum: Personal Investments
Topic: Who's buying Oil stocks?
Replies: 168
Views: 27049

Re: Who's buying Oil stocks?

Leesbro63 wrote:
abuss368 wrote:I read last week that T. Boone Pickens invested in even more oil and energy stocks.
Be careful here. I can clearly remember him saying, in 2008, that oil would never again be below $100.
Content Deleted
by ThisTimeItsDifferent
Tue Mar 17, 2015 8:55 am
Forum: Personal Consumer Issues
Topic: What internet speed is fast enough?
Replies: 52
Views: 22391

Re: What internet speed is fast enough?

I switched from AT&T 18/6 Mbps to comcast 105/15 Mbps and am happy I did.
I switched when the AT&T promotional price ended and they weren't interested in extending it.
I saved money by switching.
by ThisTimeItsDifferent
Mon Mar 16, 2015 11:20 pm
Forum: Personal Investments
Topic: Who's buying Oil stocks?
Replies: 168
Views: 27049

Re: Who's buying Oil stocks?

I'm sticking with long term dca in broader based mostly index mutual funds. If I didn't have large unrealized capital gains in some other broad large cap funds other than total market indices, I'd be all in something like vtsax When I hear colleagues talking about individual stocks or sectors, like ...
by ThisTimeItsDifferent
Sun Mar 15, 2015 1:05 pm
Forum: Personal Investments
Topic: USAA Flexible Retirement Savings Annuity
Replies: 6
Views: 2376

USAA Flexible Retirement Savings Annuity

Help for a third party. Portfolio: (all except Muni's from long-term investments) t rowe price equity income fund PRFDX: 40% of AA t rowe price tIRA equity income fund PRFDX: 10% of AA USAA tIRA Annuity guaranteed earnings 4.5% annuitization not started: 15% of AA USAA Flexible Retirement Savings An...
by ThisTimeItsDifferent
Sat Mar 14, 2015 9:21 am
Forum: Personal Consumer Issues
Topic: Wireless Internet Question
Replies: 31
Views: 7289

Re: Wireless Internet Question

One can also use ethernet over powerline adapters connected to the router and to wall outlets in rooms that have poor reception. They claim speeds up to 500 Mbps, certainly far faster than wireless or download speeds.
by ThisTimeItsDifferent
Fri Mar 13, 2015 3:36 pm
Forum: Personal Investments
Topic: CD's or Vanguard Treasury Fund
Replies: 10
Views: 1527

Re: CD's or Vanguard Treasury Fund

As the interest rate for the 5 year CD is 2.25% and the best one year CDs are 1.2% to 1.4%, my quick excel spreadsheet shows that the half year interest forfeiture on the 5 year CD makes it better as long as one keeps it for at least two years. Even keeping the 5 year CD for just one year returns on...
by ThisTimeItsDifferent
Fri Mar 06, 2015 1:01 am
Forum: Personal Investments
Topic: Decide when to pay CG tax and switch investments/funds
Replies: 15
Views: 2425

Re: Decide when to pay CG tax and switch investments/funds

When considering the tax impact of liquidating accounts with capital gains, remember the AMT. The AMT has a reduced exemption as your income goes up so you may pay much more than the LTCG tax rate for your income. See http://fairmark.com/general-taxation/alternative-minimum-tax/top-ten-things-cause-...
by ThisTimeItsDifferent
Thu Mar 05, 2015 8:48 pm
Forum: Personal Investments
Topic: In what form do you keep your emergency fund?
Replies: 96
Views: 25158

Re: In what form do you keep your emergency fund?

Lead bullets. Seriously, just cash (high yield online CDs and savings account). I fear I have too much in absolute terms, percent of assets, and relative to salary/expenses although I don't call it an "emergency fund" rather a counterweight to the other 80% of my assets in mostly low cost index stoc...
by ThisTimeItsDifferent
Thu Mar 05, 2015 10:54 am
Forum: Personal Investments
Topic: Synchrony Bank for short term investment
Replies: 18
Views: 3517

Re: Synchrony Bank for short term investment

I use synchrony ge consumer bank for cash accounts. They seemed to pay among the highest interest rates as you saw and they offer even slightly higher rates through their bonus codes. Their web site is not great; creating an account online seems to sometimes create empty orphan accounts as well as t...
by ThisTimeItsDifferent
Sat Feb 28, 2015 1:09 pm
Forum: Personal Finance (Not Investing)
Topic: Analysis Paralysis - Stock Options
Replies: 13
Views: 999

Re: Analysis Paralysis - Stock Options

I planned to hold options to as close to expiration as possible to defer taxes and because I didn't need the money.... Then, the company stock price collapsed. That's also the time when there were large layoffs, that fortunately did not affect me.

YMMV (Your mileage may vary)
by ThisTimeItsDifferent
Sat Feb 28, 2015 12:27 am
Forum: Personal Investments
Topic: HSA: spend or invest?
Replies: 31
Views: 5574

Re: HSA: spend or invest?

There are eligibility restrictions on participating in an HSA. from https://www.mybenefitwallet.com/ My spouse is contributing to a health FSA. Can I make contributions to my HSA if I participate in a qualified HDHP? No. A general-purpose FSA or HRA is other coverage that makes you ineligible for an...
by ThisTimeItsDifferent
Fri Feb 27, 2015 11:58 pm
Forum: Personal Consumer Issues
Topic: Is Vanguard understaffed?
Replies: 37
Views: 5078

Re: Is Vanguard understaffed?

I don't know about understaffed but their staff made mistakes when doing a conversion/re-characterization for me, then failed to explain what their action was until I figured it out myself by which time it was too late to get them to correct it. https://www.bogleheads.org/forum/viewtopic.php?f=2&t=1...
by ThisTimeItsDifferent
Fri Feb 27, 2015 11:45 pm
Forum: Personal Investments
Topic: Decide when to pay CG tax and switch investments/funds
Replies: 15
Views: 2425

Re: Decide when to pay CG tax and switch investments/funds

Thanks for the spreadsheet. I had not seen it before. It is fairly consistent with mine. I see that if the performance is the same in the two funds, then the the increased value favoring staying in the first fund by deferring taxes is real but a smaller benefit. If that second fund is better by one ...
by ThisTimeItsDifferent
Fri Feb 27, 2015 2:14 pm
Forum: Personal Investments
Topic: HSA: spend or invest?
Replies: 31
Views: 5574

Re: HSA: spend or invest?

I don't have an employer sponsored HSA, but I do use a HDHP and am seriously considering (before April 15) maxing out HSA contributions at Saturna or Health Savings in a VTSAX/VTSMX Vanguard total market fund. The fees net a bit higher than in a taxable account but the deduction (and being deductibl...
by ThisTimeItsDifferent
Fri Feb 27, 2015 2:03 pm
Forum: Personal Investments
Topic: Decide when to pay CG tax and switch investments/funds
Replies: 15
Views: 2425

Re: Decide when to pay CG tax and switch investments/funds

Coincidentally, Morningstar had an article about this just recently. Sell Underperforming Funds With Large Personal Unrealized Capital Gains? Guidelines to help determine whether to stay put or sell. http://news.morningstar.com/articlenet/article.aspx?id=682708 The biggest challenge for me is "What ...
by ThisTimeItsDifferent
Sun Feb 22, 2015 9:03 pm
Forum: Personal Investments
Topic: T. Rowe Price Bond Index (PBDIX) and Vanguard Bond VBTLX
Replies: 23
Views: 3531

Re: T. Rowe Price Bond Index (PBDIX) and Vanguard Bond VBTLX

It's a very interesting topic. I am much more familiar with market capitalization weighted equity indices and funds than with bond index funds. I completely see the merits of equity index funds where the market cap reflects the market, obviously, and their benefits compared to active management whic...
by ThisTimeItsDifferent
Sat Feb 21, 2015 11:41 pm
Forum: Personal Investments
Topic: T. Rowe Price Bond Index (PBDIX) and Vanguard Bond VBTLX
Replies: 23
Views: 3531

Re: T. Rowe Price Bond Index (PBDIX) and Vanguard Bond VBTLX

Thanks for the very interesting comments and analysis. Morningstar and other sites show the similarity but the Yahoo finance and marketwatch interactive charts I originally used show PBDIX diverging negatively December 2 years ago. Perhaps they incorrectly report a distribution. The performance tab ...
by ThisTimeItsDifferent
Sat Feb 21, 2015 3:37 pm
Forum: Personal Investments
Topic: T. Rowe Price Bond Index (PBDIX) and Vanguard Bond VBTLX
Replies: 23
Views: 3531

T. Rowe Price Bond Index (PBDIX) and Vanguard Bond VBTLX

Does anyone have ideas on why T. Rowe Price U.S. Bond Enhanced Index (PBDIX) and Vanguard Total Bond Market Index Fund (VBMFX/VBTLX) have diverged so much over the last two years? For the 10 years prior they were very close. At the end of 2013, PBDIX had a big 1% point plunge compared to Vanguard so...
by ThisTimeItsDifferent
Wed Feb 18, 2015 8:56 am
Forum: Personal Investments
Topic: Decide when to pay CG tax and switch investments/funds
Replies: 15
Views: 2425

Re: Decide when to pay CG tax and switch investments/funds

These are all taxable. I'm assuming the difference in returns between the better/worse funds that I use in my calculations takes taxable distributions and expenses into account.

I just don't like to pay taxes!
by ThisTimeItsDifferent
Tue Feb 17, 2015 10:38 pm
Forum: Personal Investments
Topic: Decide when to pay CG tax and switch investments/funds
Replies: 15
Views: 2425

Decide when to pay CG tax and switch investments/funds

How do you decide when to pay CG tax and switch investments/funds? If you have a sub-optimal example of a category of mutual fund, say something with a higher expense ratio and lower returns (but not terrible), how do you decide whether it is worth it to liquidate that fund, pay the capital gains ta...
by ThisTimeItsDifferent
Thu Feb 12, 2015 10:16 pm
Forum: Personal Finance (Not Investing)
Topic: Tax calculation for recharacterization of Roth conversion
Replies: 31
Views: 4087

Re: Tax calculation for recharacterization of Roth conversio

I agree. That, and the fact I requested they be separate accounts, and that they never said they weren't over many emails made me think for the last 4 years that they were.... They all showed up as separate lines under "Roth IRA" instead of "Roth IRA 1", "Roth IRA 2" and "Roth IRA 3" and they had se...
by ThisTimeItsDifferent
Thu Feb 12, 2015 5:20 pm
Forum: Personal Finance (Not Investing)
Topic: Tax calculation for recharacterization of Roth conversion
Replies: 31
Views: 4087

Re: Tax calculation for recharacterization of Roth conversio

OK. It turns out although my converted Roth IRA accounts had different account numbers leading me to think they were separate accounts as I requested, they were in Vanguard's eyes just 1 commingled Roth account for this purpose. One cannot create new accounts by telephone. One has to do that online ...
by ThisTimeItsDifferent
Tue Feb 10, 2015 1:54 am
Forum: Personal Finance (Not Investing)
Topic: Roth IRA strategy
Replies: 15
Views: 3856

Re: Roth IRA strategy

This strategy, and any re-characterization, only makes sense if one has non-basis in the conversion, right? If the Roth conversion was all basis, there's never a reason to re-characterize. If the price goes down while in the Roth, so what, you didn't pay tax anyway and re-characterizing and (re) con...
by ThisTimeItsDifferent
Mon Feb 09, 2015 11:16 pm
Forum: Personal Finance (Not Investing)
Topic: Tax calculation for recharacterization of Roth conversion
Replies: 31
Views: 4087

Re: Tax calculation for recharacterization of Roth conversio

What would Vanguard do if you had no other accounts but that Roth, you re-characterized, and your account fell in value between the day they calculated the NIA required which is just the closing balance and the next day they transferred the shares to meet that NIA? They couldn't raid another account...
by ThisTimeItsDifferent
Mon Feb 09, 2015 6:03 pm
Forum: Personal Finance (Not Investing)
Topic: Tax calculation for recharacterization of Roth conversion
Replies: 31
Views: 4087

Re: Tax calculation for recharacterization of Roth conversio

Were any of the recharacterizations you have had, where they used the same price for the calculation and the value, with Vanguard? Do any other bogleheads have datapoints on which custodians have used the same value for the NIA and the transfer, and which have used different values, or what Vanguard...
by ThisTimeItsDifferent
Mon Feb 09, 2015 12:15 pm
Forum: Personal Finance (Not Investing)
Topic: Tax calculation for recharacterization of Roth conversion
Replies: 31
Views: 4087

Re: Tax calculation for recharacterization of Roth conversio

But doesn't the special rule give a different result in cases where there was a market value change of the Roth between the "Adjusted Closing Balance" which is the day before ("immediately prior to") the removal and the day of the removal? The special rule talks about the "entire account balance" wh...
by ThisTimeItsDifferent
Mon Feb 09, 2015 10:21 am
Forum: Personal Finance (Not Investing)
Topic: Tax calculation for recharacterization of Roth conversion
Replies: 31
Views: 4087

Re: Tax calculation for recharacterization of Roth conversio

On the phone I told them I wanted to re-characterize both whole separate accounts "like the conversion had never been done." I did not specifically say "use the special rule from td 9056." Vaguard seemed to do two things "wrong" here. They did not isolate the net attributable income to the two separ...
by ThisTimeItsDifferent
Sat Feb 07, 2015 4:26 pm
Forum: Personal Investments
Topic: Accidentally contributed to Roth IRA
Replies: 39
Views: 11970

Re: Accidentally contributed to Roth IRA

Vanguard recharacterized the Roth to traditional, but I don't understand what they did. How can they leave earnings in a Roth if the original contributions were not permissible? Hello LGB, Thank you for reaching out to me. It appears that the calculations are correct. Below is an explanation of how...
by ThisTimeItsDifferent
Sat Feb 07, 2015 1:02 pm
Forum: Personal Finance (Not Investing)
Topic: Tax calculation for recharacterization of Roth conversion
Replies: 31
Views: 4087

Re: Tax calculation for recharacterization of Roth conversio

Maybe the $1500 loss in the Roth IRA between the day I requested the re-characterization and the "trade date" the next day led to them needing to take out $1500 from my original Roth and put that into the traditional IRA. The few (~$5) dollars difference between the loss that day and the amount they...
by ThisTimeItsDifferent
Fri Feb 06, 2015 3:02 pm
Forum: Personal Finance (Not Investing)
Topic: Tax calculation for recharacterization of Roth conversion
Replies: 31
Views: 4087

Re: Tax calculation for recharacterization of Roth conversio

Vanguard says they did not characterize my original Roth IRA contribution but only the conversion. What they reported as the loss (Net Attributable Income) leads to what they had to take out of the original Roth, but does not match what I calculate as the loss and secondly, as I had asked them to cr...
by ThisTimeItsDifferent
Fri Feb 06, 2015 12:47 pm
Forum: Personal Investments
Topic: Accidentally contributed to Roth IRA
Replies: 39
Views: 11970

Re: Accidentally contributed to Roth IRA

On 1/5 Mrs. Letsgobobby's Roth IRA received a purchase of $5500 into VISVX, but I have no idea the value of her other funds on that day - I suppose I can just add up the (share price)*(shares owned) at close of trading on 1/5? Let's say it was approximately $100k including the $5500 contribution. L...
by ThisTimeItsDifferent
Tue Feb 03, 2015 10:05 am
Forum: Personal Investments
Topic: I think I'm missing something about the backdoor roth
Replies: 51
Views: 8859

Re: I think I'm missing something about the backdoor roth

Right you are about subsequent tIRA contributions since only year end values matter. The only issue is that according to Vanguard, an IRA with a 0 balance has to meet the minimum initial deposit requirement of the fund, anywhere from $2000+ depending on the fund, but an account with even $1 in it do...
by ThisTimeItsDifferent
Tue Feb 03, 2015 12:16 am
Forum: Personal Investments
Topic: I think I'm missing something about the backdoor roth
Replies: 51
Views: 8859

Re: I think I'm missing something about the backdoor roth

If the roll-in to a 401k and the conversion are done in different calendar years, then one has to do the roll-in first? True in the way you meant it, but not actually correct. It would not be true in this case. December 2014 - Roll into 401k January 2015 - conversion December 2015 - there is some m...
by ThisTimeItsDifferent
Mon Feb 02, 2015 4:31 am
Forum: Personal Finance (Not Investing)
Topic: Tax calculation for recharacterization of Roth conversion
Replies: 31
Views: 4087

Re: Tax calculation for recharacterization of Roth conversio

My original Roth only had (small) contributions from many years before and gains. There were no sweep ins. During the time the Original tIRAs were in new Roths, they had less than $5 in dividends and the original Roth had less than $1 of dividends. Looking at my historical Roth contributions from 10...
by ThisTimeItsDifferent
Sun Feb 01, 2015 7:12 pm
Forum: Personal Investments
Topic: I think I'm missing something about the backdoor roth
Replies: 51
Views: 8859

Re: I think I'm missing something about the backdoor roth

I thought that one had to roll in the deductible contributions and gains (taxable non basis part) of a traditional ira into the 401k before doing the conversion of the basis (non deductible contributions) into a Roth to have the taxable part not subject to the pro rata rule. Are you saying that as l...
by ThisTimeItsDifferent
Sun Feb 01, 2015 6:48 pm
Forum: Personal Finance (Not Investing)
Topic: Tax calculation for recharacterization of Roth conversion
Replies: 31
Views: 4087

Re: Tax calculation for recharacterization of Roth conversio

Your description is right.I really converted the traditional IRAs into new separate Roth accounts. Just at the re-characterization, the Roth accounts totaled 54k with the breakdown in the original post. After the re-characterization, the traditional IRAs had a total of 53.5k and the original Roth wa...
by ThisTimeItsDifferent
Sun Feb 01, 2015 12:44 pm
Forum: Personal Finance (Not Investing)
Topic: Tax calculation for recharacterization of Roth conversion
Replies: 31
Views: 4087

Re: Tax calculation for recharacterization of Roth conversio

Does Vanguard provide calculation summaries for tIRA/Roth conversions and re-characterizations? I had Vanguard do a tIRA/Roth conversion and re-characterization (in 2010/2011 due to an investment decline while in the Roth). On the re-characterization, Vanguard took shares from a previously existing ...