Search found 58036 matches

by livesoft
Fri Jan 19, 2018 10:31 am
Forum: Investing - Theory, News & General
Topic: Rebalancing in last 12 months
Replies: 19
Views: 1363

Re: Rebalancing in last 12 months

What does academic literature say on frequency of rebalancing and effect on returns? I remember a fidelity article about best returns being for those who were deceased and didn’t touch their accounts. Total hearsay, so you remember hearsay. Here is more hearsay: I heard of a Fidelity article about ...
by livesoft
Fri Jan 19, 2018 9:10 am
Forum: Personal Consumer Issues
Topic: Family Balance and Children's Athletics
Replies: 35
Views: 2150

Re: Family Balance and Children's Athletics

Ok, I read about all the extreme behavior above (and some reasonable behavior) but I have to write that the vast majority of parents and families are very reasonable about sports activities for their children. Sports is a big part of life in the USA and other countries, so it is very useful to have ...
by livesoft
Fri Jan 19, 2018 7:35 am
Forum: Investing - Help with Personal Investments
Topic: High Dividend Stocks as bond substitute?
Replies: 32
Views: 1812

Re: High Dividend Stocks as bond substitute?

So your stocks had the return of the stock market which you could've gotten with investing in a couple of total stock market index funds. They are not bonds nor bond funds and should not be compared to bonds. If you want 100% equities and the risk that goes with that, then it is not a problem I think.
by livesoft
Fri Jan 19, 2018 7:19 am
Forum: Investing - Help with Personal Investments
Topic: New guy with a question
Replies: 4
Views: 492

Re: New guy with a question

I suggest putting your bond funds in your tax-deferred accounts such as a traditional IRA, then your tax-efficient equity funds can go into any of the 3 kinds of accounts: future tax-free (Roth), tax-deferred (trad. IRA/403b/401k/...), and/or taxable. And I would keep bond funds out of taxable and R...
by livesoft
Thu Jan 18, 2018 4:08 pm
Forum: Investing - Theory, News & General
Topic: $399 - New Course - Fire your Financial Advisor - By WhiteCoat Investor - Anyone?
Replies: 121
Views: 7110

Re: $399 - New Course - Fire your Financial Advisor - By WhiteCoat Investor - Anyone?

Yes, I think it is true. If rebalancing didn't make a meaningful change, then one can also say the expense ratio diference is also not meaningful. Behavioral issues also have an impact, too. I'll say this, too: Nobody rebalances like a computer algorithm, so those "studies" are always to be taking w...
by livesoft
Thu Jan 18, 2018 4:04 pm
Forum: Investing - Theory, News & General
Topic: Rebalancing in last 12 months
Replies: 19
Views: 1363

Re: Rebalancing in last 12 months

I go by tight bands and RBDs, so my records show I sold equities on at least 14 days in significant amounts including today. BTW, that's an advantage to using MSMoney: I can create a report that only shows sell transactions for equities greater than a given dollar amount over any date range. Plus ma...
by livesoft
Thu Jan 18, 2018 3:47 pm
Forum: Investing - Theory, News & General
Topic: $399 - New Course - Fire your Financial Advisor - By WhiteCoat Investor - Anyone?
Replies: 121
Views: 7110

Re: $399 - New Course - Fire your Financial Advisor - By WhiteCoat Investor - Anyone?

Not to get too off topic, but I thought this was at least partially debunked- the continuous and automatic fund rebalancing makes up for the slight increase in ER. Yes, I think that is essentially true, but there are still the taxes which would be a big deal for high income folks and low income fol...
by livesoft
Thu Jan 18, 2018 2:44 pm
Forum: Personal Consumer Issues
Topic: Family Balance and Children's Athletics
Replies: 35
Views: 2150

Re: Family Balance and Children's Athletics

In my area there are leagues for every age level and athletic ability, so no one is left out. So clearly parents can set their own boundaries. After about age 12 or so, the kids know if they are going to stop sports, play on school teams, play in church or Y leagues, or play AAU leagues. I coached y...
by livesoft
Thu Jan 18, 2018 1:41 pm
Forum: Investing - Theory, News & General
Topic: Is there a reason I can't do a single-transaction rebalance in my IRAs?
Replies: 9
Views: 931

Re: Is there a reason I can't do a single-transaction rebalance in my IRAs?

I have a taxable account and I do not want it to have the same asset allocation as my other accounts. I do not want multi-transaction things happening because I don't want to pay taxes that are trivially avoided. I make adjustments in my tax-advantaged accounts based on the entire portfolio asset al...
by livesoft
Thu Jan 18, 2018 1:39 pm
Forum: Investing - Help with Personal Investments
Topic: which Brokerage do you use...why?
Replies: 48
Views: 5499

Re: which Brokerage do you use...why?

I'm glad you mentioned dividends going to an external bank account. I'm looking at switching to Merrill Edge and this is a feature I want. Does anyone know how common this is among brokerages? I know Vanguard can do it with mutual funds but I don't think they can with an ETF. I have my Fidelity tax...
by livesoft
Thu Jan 18, 2018 1:05 pm
Forum: Personal Finance (Not Investing)
Topic: To the doctors on the forum
Replies: 88
Views: 5078

Re: To the doctors on the forum

I had the MRI discussion with my orthopedist last year. We discussed all MRI places within about a 10 mile radius and there were several of them. His reasoning for recommending a specific one was quite interesting: He liked the reports from the radiologist* that read the MRIs which also showed up in...
by livesoft
Thu Jan 18, 2018 12:44 pm
Forum: Investing - Theory, News & General
Topic: $399 - New Course - Fire your Financial Advisor - By WhiteCoat Investor - Anyone?
Replies: 121
Views: 7110

Re: $399 - New Course - Fire your Financial Advisor - By WhiteCoat Investor - Anyone?

I'm amused by this thread. WCI probably got tired of e-mails asking him "How do I fire my financial advisor?" At least now his answer can be simple: "Click on this."
by livesoft
Thu Jan 18, 2018 9:14 am
Forum: Investing - Help with Personal Investments
Topic: Selling Shares of UTMA Account
Replies: 29
Views: 1138

Re: Selling Shares of UTMA Account

Until one understands the new kiddie tax rules completely I think one cannot make a decision. If the UTMA is invested tax efficiently then it should not create any income that is taxed, so selling it is not so important. Since young adult is earning money, that earned money can be used to fund Roth ...
by livesoft
Thu Jan 18, 2018 8:43 am
Forum: Investing - Help with Personal Investments
Topic: Automatic Investing
Replies: 11
Views: 621

Re: Automatic Investing

I wonder if you can push from your checking to Fidelity checking (aka cash management account) and then have Fidelity do automatic investing from the CMA ?

You have a Fido CMA, right?
by livesoft
Wed Jan 17, 2018 7:39 pm
Forum: Investing - Help with Personal Investments
Topic: Should I sell Ishares and invest in index funds?
Replies: 5
Views: 449

Re: Should I sell Ishares and invest in index funds?

In general, i think many iShares ETFs are index funds, so it would not make sense to sell something like ITOT and buy a Vanguard total stock market index fund.

Thus, figure out what you really got and perhaps reveal your holdings here for more help.
by livesoft
Wed Jan 17, 2018 5:11 pm
Forum: Investing - Theory, News & General
Topic: Recent market gains
Replies: 18
Views: 1533

Re: Recent market gains

Bitcoin profits
by livesoft
Wed Jan 17, 2018 4:00 pm
Forum: Investing - Help with Personal Investments
Topic: Form 8606 filed preemptively before funding IRA
Replies: 6
Views: 344

Re: Form 8606 filed preemptively before funding IRA

Vanguard does not have anything to do with these forms.
by livesoft
Wed Jan 17, 2018 3:33 pm
Forum: Investing - Theory, News & General
Topic: Case study Broker trade executions
Replies: 212
Views: 21766

Re: Case study Broker trade executions

Since trades are free one can submit 3 or 4 orders of $25K to $50K each with no worries within seconds of each of them. Or submit non marketable limit orders then change them to market orders one at a time. After all, if you are going to be making big trades, then you might as well have some fun exp...
by livesoft
Wed Jan 17, 2018 2:24 pm
Forum: Investing - Theory, News & General
Topic: Case study Broker trade executions
Replies: 212
Views: 21766

Re: Case study Broker trade executions

Yes, VEA, VWO, and VNQ are all darlings of day traders and very liquid.
by livesoft
Wed Jan 17, 2018 1:14 pm
Forum: Investing - Theory, News & General
Topic: A question that keeps coming to my head
Replies: 13
Views: 1099

Re: A question that keeps coming to my head

What is the same for both portfolios?

We cannot predict the future performance of both of them.
by livesoft
Wed Jan 17, 2018 1:08 pm
Forum: Personal Finance (Not Investing)
Topic: Form 1099-R IRA/SEP/SIMPLE box affecting refund
Replies: 52
Views: 1779

Re: Form 1099-R IRA/SEP/SIMPLE box affecting refund

I tend not to treat as fact what is sometimes reported since very often people add later: Oooops, ....
by livesoft
Wed Jan 17, 2018 1:03 pm
Forum: Investing - Help with Personal Investments
Topic: Rebalancing bands tighter than 5 / 25?
Replies: 17
Views: 1106

Re: Rebalancing bands tighter than 5 / 25?

I think it is ok to have tighter than 5% bands. You can test this for yourself by comparing to a benchmark. Do you beat your benxhmark? Then you are doing ok.
by livesoft
Wed Jan 17, 2018 12:44 pm
Forum: Personal Finance (Not Investing)
Topic: Form 1099-R IRA/SEP/SIMPLE box affecting refund
Replies: 52
Views: 1779

Re: Form 1099-R IRA/SEP/SIMPLE box affecting refund

Here is another idea: if you have a basis in your IRA , then part of a Roth conversion is not taxable, but that will not be the case with a pension. So unchecking the "IRA" box will remove any IRA basis calculation and create a higher AGI.
by livesoft
Wed Jan 17, 2018 12:15 pm
Forum: Investing - Help with Personal Investments
Topic: Make me feel good about my bond allocation
Replies: 35
Views: 3207

Re: Make me feel good about my bond allocation

Don't compare to s&p500. Compare to VSMGX instead.
by livesoft
Wed Jan 17, 2018 12:13 pm
Forum: Personal Finance (Not Investing)
Topic: Form 1099-R IRA/SEP/SIMPLE box affecting refund
Replies: 52
Views: 1779

Re: Form 1099-R IRA/SEP/SIMPLE box affecting refund

A taxable Roth conversion increases my sales tax deduction with HRBlock tax prep software.
by livesoft
Wed Jan 17, 2018 10:18 am
Forum: Personal Finance (Not Investing)
Topic: 1099-R Question
Replies: 5
Views: 668

Re: 1099-R Question

What Alan S. describes is found in the instructions to Form 8606 which are well worth reading and understanding. Even the text of the explanatory statement is given. There are a number of threads where TT made mistakes on this form posted on the forum, too. A.good rule of thumb is to understand what...
by livesoft
Wed Jan 17, 2018 10:08 am
Forum: Investing - Theory, News & General
Topic: Is there a reason I can't do a single-transaction rebalance in my IRAs?
Replies: 9
Views: 931

Re: Is there a reason I can't do a single-transaction rebalance in my IRAs?

Neither I nor my spouse ever had a 401k that did this. We would never want to use such a feature either. However, 401k plans usually have no initial minimums for each fund, but other accounts do. Also other accounts could have other kinds of investments than mutual funds. I imagine a one step rebala...
by livesoft
Wed Jan 17, 2018 9:27 am
Forum: Personal Finance (Not Investing)
Topic: Form 1099-R IRA/SEP/SIMPLE box affecting refund
Replies: 52
Views: 1779

Re: Form 1099-R IRA/SEP/SIMPLE box affecting refund

Refund. Refund! REFUND! So your refund went from $100 to $85. Your taxable income would've changed by more than that. Sales tax deduction includes Roth conversion as part of your income for calculating the amount from income, but not rollovers. So change deduction, means change taxable income means ...
by livesoft
Wed Jan 17, 2018 8:40 am
Forum: Personal Finance (Not Investing)
Topic: Form 1099-R IRA/SEP/SIMPLE box affecting refund
Replies: 52
Views: 1779

Re: Form 1099-R IRA/SEP/SIMPLE box affecting refund

I am going to say that we cannot tell you because it will depend on what else you did on your tax return when you switched an ira withdrawal to a 401k direct roll over or to a recharacterization.i
by livesoft
Wed Jan 17, 2018 8:12 am
Forum: Investing - Help with Personal Investments
Topic: Advice on 100K in WF accounts
Replies: 1
Views: 233

Re: Advice on 100K in WF accounts

At least WF got you thinking about this. I would avoid any communication with the in-house WF sales rep except to tell them, "No thank you. I understand Wells Fargo has the Wells Trade discount broker where I don't have to pay you any fees. And I will get free checking and never have to pay this ban...
by livesoft
Wed Jan 17, 2018 7:53 am
Forum: Personal Finance (Not Investing)
Topic: Question about 1099R
Replies: 4
Views: 429

Re: Question about 1099R

My spouse received something similar when her previous employer was sold. It was the money from another plan at the employer, an ESOP or something. She got a check for it that she forgot that she received and had never cashed it.

You have to talk to your former employer and 401k administrator.
by livesoft
Tue Jan 16, 2018 6:48 pm
Forum: Investing - Help with Personal Investments
Topic: rebalancing in a taxable account
Replies: 9
Views: 1116

Re: rebalancing in a taxable account

You are not overthinking it because it appears there is no other way out ... unless ... You donate shares with LTCG to your Donor Advised Fund (they were all the rage in the last week of December) ... or ... Give some shares to others (like me or maybe family members) who can benefit while being in ...
by livesoft
Tue Jan 16, 2018 6:13 pm
Forum: Personal Finance (Not Investing)
Topic: Got raise. Taxes taking 41% of it?
Replies: 30
Views: 3853

Re: Got raise. Taxes taking 41% of it?

The OP could put the entire raise into their 401(k) and thus not have 41% taken out.
by livesoft
Tue Jan 16, 2018 6:09 pm
Forum: Personal Finance (Not Investing)
Topic: How to max out 401k
Replies: 19
Views: 1571

Re: How to max out 401k

True-up is important because if your company does not do the true-up and only matches on a per paycheck basis, then getting the maximum possible match is more difficult than contributing the maximum possible to the 401(k). That's because if one hits the maximum possible deferral (aka employee contri...
by livesoft
Tue Jan 16, 2018 5:43 pm
Forum: Personal Finance (Not Investing)
Topic: Vanguard Tax Forms Now Online
Replies: 39
Views: 2480

Re: Vanguard Tax Forms Now Online

I'd rather have my 1099s done right the first time than to be the first on my block to file my tax return. But every year on bogleheads.org it's like kicking an ant nest when the 1099s come out. Everybody knows there are mistakes in them and everybody knows they don't really need to get them until M...
by livesoft
Tue Jan 16, 2018 5:28 pm
Forum: Personal Finance (Not Investing)
Topic: Vanguard Tax Forms Now Online
Replies: 39
Views: 2480

Re: Vanguard Tax Forms Now Online

Am I missing something ??? Yes, get better tax software which will help guide you when Box 2A is empty and 2B checked, so that you do not need to put a number in Box 2A. Also tax software does not stop one from reading the IRS instructions. And yes, financial institutions send out incorrect 1099s a...
by livesoft
Tue Jan 16, 2018 5:16 pm
Forum: Investing - Theory, News & General
Topic: Emerging Markets equities went sideways for 50 years 1920-70
Replies: 24
Views: 2075

Re: Emerging Markets equities went sideways for 50 years 1920-70

Please name the top 10 EM stocks available in 1920, 1930, 1940, 1950. If there were less than 10 total EM stocks, just name them instead. Let's see what we are really talking about here. Thanks!
by livesoft
Tue Jan 16, 2018 3:37 pm
Forum: Investing - Theory, News & General
Topic: Case study Broker trade executions
Replies: 212
Views: 21766

Re: Case study Broker trade executions

^Thanks for that info. Re: MOC. There are issues with MOC orders, so I would avoid them myself. But your broker will do executions at the market opening cross without any special order as has been shown in this thread. That is, one doesn't specify market-on-open orders if they want to execute at the...
by livesoft
Tue Jan 16, 2018 3:21 pm
Forum: Investing - Help with Personal Investments
Topic: Tax implications of rebalancing
Replies: 7
Views: 516

Re: Tax implications of rebalancing

Yes, this will create taxes for you unless your taxable income is so low that you won't pay taxes which is possible. I would not buy Wellesley in a taxable account unless you like to pay even more taxes. That fund is actively managed and what I would call moderately tax-inefficient. If we knew a lot...
by livesoft
Tue Jan 16, 2018 3:12 pm
Forum: Personal Consumer Issues
Topic: How can I become a better consumer?
Replies: 18
Views: 1545

Re: How can I become a better consumer?

I have a few rules: 1. No new technology unless an old piece of tech gets tossed. This means constant number of devices which is basically laptop and phone. No new gizmos. 2. Only buy food, so it comes in the house and out of the house via the toilet. Otherwise, no new stuff in the house. 3. One can...
by livesoft
Tue Jan 16, 2018 1:58 pm
Forum: Investing - Help with Personal Investments
Topic: Gifted $1,000: Max out Roth or go towards smaller balances on credit cards?
Replies: 10
Views: 497

Re: Gifted $1,000: Max out Roth or go towards smaller balances on credit cards?

In this situation, I would ask the person who gave you the $1,000 what they intended for you to do with the money. It should make them feel better.
by livesoft
Tue Jan 16, 2018 1:55 pm
Forum: Investing - Theory, News & General
Topic: rebalancing
Replies: 5
Views: 364

Re: rebalancing

Rebalance in a non-taxable account? Don't buy bonds? Instead buy CDs or something like them. Another thing for the future: If you are automatically reinvesting dividends paid by an equity fund back into the same equity fund, don't do that. Instead, manually decide where the dividend the be invested.
by livesoft
Tue Jan 16, 2018 1:53 pm
Forum: Investing - Theory, News & General
Topic: pros and cons of target date funds?
Replies: 21
Views: 995

Re: pros and cons of target date funds?

jayk238 wrote:
Tue Jan 16, 2018 12:52 pm
Why are bonds preferred in tax advantaged accounts.
That's not quite what I wrote. The details matter.
How does tax harvesting work if im not constantly paying attention to it.
See https://www.bogleheads.org/wiki/Tax_loss_harvesting
by livesoft
Tue Jan 16, 2018 11:16 am
Forum: Investing - Help with Personal Investments
Topic: In this case, put bonds in taxable?
Replies: 10
Views: 752

Re: In this case, put bonds in taxable?

1. The 3.8% tax is explained here: https://www.irs.gov/newsroom/net-investment-income-tax-faqs It seems to apply to a single filer who has more than $200k of investment income in a year. If I sold half of each individual stock position, when those positions are more than 90% capital gains, I’d have...
by livesoft
Tue Jan 16, 2018 11:02 am
Forum: Investing - Help with Personal Investments
Topic: Best way to sell ETF in one account, buy it in another
Replies: 10
Views: 838

Re: Best way to sell ETF in one account, buy it in another

Thanks for putting your test in the case study thread, much obliged.

Yes, I see that limit orders would give one partial "peace of mind" and really cause no harm as long as both execute.
by livesoft
Tue Jan 16, 2018 10:48 am
Forum: Investing - Help with Personal Investments
Topic: Best way to sell ETF in one account, buy it in another
Replies: 10
Views: 838

Re: Best way to sell ETF in one account, buy it in another

You can only do that if your limit prices are set right. I set my limit prices wrong in this post , but it worked out to my advantage. You can do the opening cross with market orders and have it always work. And thanks for the experiment and the results. Maybe add them to the "Case study" thread, to...
by livesoft
Tue Jan 16, 2018 10:43 am
Forum: Investing - Help with Personal Investments
Topic: In this case, put bonds in taxable?
Replies: 10
Views: 752

Re: In this case, put bonds in taxable?

I would do what I am actually doing now: 1. 100% equities in taxable account. 2. All bonds go in tax-deferred. 3. Conversions to Roth IRA happening. 4. Taxes on qualified dividends and realized long-term capital gains taxed at 0% because I keep taxable income low. 5. Did I say this: Zero bonds in ta...
by livesoft
Tue Jan 16, 2018 10:31 am
Forum: Investing - Help with Personal Investments
Topic: Paying for college
Replies: 13
Views: 896

Re: Paying for college

Yes, AOTC for 4 years, then Lifetime Learning Credit for the other years. If all bills paid in 4 years, then that reduces credits.
by livesoft
Tue Jan 16, 2018 9:55 am
Forum: Investing - Theory, News & General
Topic: A 4% move in the Dow and S&P in 12 days? Seems odd
Replies: 94
Views: 7348

Re: A 4% move in the Dow and S&P in 12 days? Seems odd

Really big days are more extreme than this. But the recent gains are quite nice and nothing to sneer at.