Search found 1627 matches

by nps
Sun Jan 07, 2024 1:27 pm
Forum: Personal Investments
Topic: Concern about placing international stocks (VTIAX) in taxable
Replies: 23
Views: 4128

Re: Concern about placing international stocks (VTIAX) in taxable

fortunefavored wrote: Sat Jan 06, 2024 2:55 pm Putting all your international in tax sheltered will waste the foreign tax credit.

I did the math once and have long forgotten what the optimal "maximum" amount to have in taxable is, but it's something for someone else to chime in on who can remember the details. :)
Many times it's worth it to "waste" the foreign tax credit
by nps
Sun Jan 07, 2024 9:24 am
Forum: Investing - Theory, News & General
Topic: I Bonds Mega Thread (I Bond Heads Rejoice!)
Replies: 6651
Views: 1201932

Re: I Bonds Mega Thread (I Bond Heads Rejoice!)

Using IRS DIRECT PAY- to get the extra paper I bonds. When looking at the Direct Pay option, it asks you to give the reason for the payment, and provides several options. The two that seem most applicable are Balance Due and Estimated Taxes. Should I use Estimated Taxes as a reason? I was told that to use this I needed to make the payment prior to Jan 15. If so, that likely means losing out on probably 2 months interest on the extra $5,000- or about $40 or so. In reading the website, it states If you want to make a late estimated tax payment after January 31st (for last year), select Balance Due as the reason for payment." This seems to mean that I don't need to make the payment so early (give up the two months of interest), but rathe...
by nps
Sun Jan 07, 2024 5:41 am
Forum: Investing - Theory, News & General
Topic: WSJ Reporter doing story on Retiring with $1million
Replies: 92
Views: 20133

Re: WSJ Reporter doing story on Retiring with $1million

Ferdinand2014 wrote: Wed Dec 28, 2022 5:09 am
Charles Joseph wrote: Tue Dec 27, 2022 5:49 am I suppose one must factor in the WSJ audience, but I’d like to hear about the 90% of retirees who get by on less than $1 million - most of them significantly less.

That would be an interesting article. Any way that suggestion could be passed along?
The authors have intentions of doing exactly that.
They did just publish this article (paywall):

Here’s What It’s Like to Retire on Almost Nothing but Social Security

Although unlike the articles on retiring with $500k, $1M, and $2M, I don't recall anyone asking for Bogleheads input on this one.
by nps
Sat Jan 06, 2024 2:43 pm
Forum: Personal Investments
Topic: Concern about placing international stocks (VTIAX) in taxable
Replies: 23
Views: 4128

Re: Concern about placing international stocks (VTIAX) in taxable

I think your Vanguard ERs are off by an order of magnitude. There will be more tax drag for you with international, I would go with option 2.
by nps
Sat Jan 06, 2024 10:30 am
Forum: Personal Finance (Not Investing)
Topic: Fidelity as a one stop shop
Replies: 5973
Views: 1007770

Re: Fidelity as a one stop shop

kojima wrote: Sat Jan 06, 2024 9:56 am This will be the first time where I will have a pretty large tax bill for 2023 due to some realized capital gains. I want to pay the IRS with the cash in my Fidelity account - what would be the best way to do this if I file my taxes with TurboTax? Will TurboTax give me an option to directly transfer it to the IRS from my Fidelity account? Should I transfer the cash first to my bank account and then pay it from there?
I would put it on a credit card

https://www.irs.gov/payments/pay-your-t ... redit-card
by nps
Sat Jan 06, 2024 9:23 am
Forum: Personal Investments
Topic: VUSXX taxable for state and local now
Replies: 353
Views: 59375

Re: VUSXX taxable for state and local now

Except that even the Fidelity Treasury Only Money Market Fund invests in a small fraction of other things from time to time. At the time of its semi-annual report (Oct. 31, 3023), it had 97.1% of assets in US Treasuries with 2.9% in other assets (not very clearly defined, but probably repos). 0.0% repo according to this https://fundresearch.fidelity.com/mutual-funds/composition/31617H300 Curious why Vanguard went so heavily into repos. Other "treasury only" money market funds I hold at other brokers did not. That may be for the other treasury funds you hold, but this thread (https://www.bogleheads.org/forum/viewtopic.php?p=7227633) described the Fidelity Treasury Money Market fund (FZFXX) in April 2023 at 91.8% repos. FZFXX is no...
by nps
Sat Jan 06, 2024 7:47 am
Forum: Personal Investments
Topic: Ignorant question on a mutual fund trade. Schwab
Replies: 21
Views: 2295

Re: Ignorant question on a mutual fund trade. Schwab

But you can't sell all in dollars. I believe Schwab limits dollar sales to 90 percent of last market value. Agree that not seeing the funds available in cash balance doesn't mean you can't trade with them. An easy way to know is to try to make a purchase. Schwab has a "sell all" button on their trade screen that fills your quantity box with the correct value. I don't know why you'd ever want to or be able to sell all in dollars when you don't know the price you're getting. I would sell most of the position in dollars, in order to be able to enter a buy order and avoid being out of the market. Then use sell and buy another to trade the last bit. (Unless both are Schwab funds, then can just exchange all via "sell and buy anoth...
by nps
Sat Jan 06, 2024 4:23 am
Forum: Personal Investments
Topic: VUSXX taxable for state and local now
Replies: 353
Views: 59375

Re: VUSXX taxable for state and local now

starfury wrote: Sat Jan 06, 2024 2:44 am
nassau34 wrote: Sat Jan 06, 2024 2:11 am If they want to have VUSXX invest in repos in order to bolster returns, why wouldn't they have a separate true all treasuries fund for people in higher tax states? There are a whole lot of people in higher tax states.
Well, some folks in DC engaged in debt ceiling shenanigans last year. My guess is that everyone else (like Vanguard) had to adapt as best they could...
Fidelity does this

Fidelity Treasury Money Market Fund FZFXX
Fidelity Treasury Only Money Market Fund FDLXX
by nps
Sat Jan 06, 2024 4:18 am
Forum: Personal Investments
Topic: Ignorant question on a mutual fund trade. Schwab
Replies: 21
Views: 2295

Re: Ignorant question on a mutual fund trade. Schwab

They were both Vanguard Mutual Funds. That could explain the delay as I don't recall the delay when I've sold Schwab funds. We had dinner with my 90 old Mom tonight. She just left and I checked back just now. The trades recorded sometime in the past couple hours. Thanks for all the feedback. You folks are very helpful. If you'd sold in dollars, you could have bought more MF in dollars, with both transactions executing the same day, even though they were VG MF and not Sch MF. They would not have shown in your cash balance or your unsettled funds balance, but they would have been available to trade with nonetheless. But you can't sell all in dollars. I believe Schwab limits dollar sales to 90 percent of last market value. Agree that not seei...
by nps
Fri Jan 05, 2024 7:43 pm
Forum: Personal Investments
Topic: Ignorant question on a mutual fund trade. Schwab
Replies: 21
Views: 2295

Re: Ignorant question on a mutual fund trade. Schwab

The funds from the sale should be available for you to trade now, regardless of the order status
by nps
Fri Jan 05, 2024 10:48 am
Forum: Personal Consumer Issues
Topic: credit cad protection for authorized overcharges?
Replies: 7
Views: 815

Re: credit cad protection for authorized overcharges?

If there was a health insurer involved they may have dispute procedures
by nps
Fri Jan 05, 2024 5:58 am
Forum: Personal Consumer Issues
Topic: Help me find a coffee maker with these features
Replies: 44
Views: 6638

Re: Help me find a coffee maker with these features

Horton wrote: Wed Dec 27, 2023 8:50 am The challenge with anything that involves a water kettle is that I’m typically making breakfast for a bunch of kids in the morning who do not seem to care that I would like a nice cup of coffee. As such, anything that involves my attention is unlikely to work. That said, I have plenty of time to let a machine do the work for me. :beer
There are kettles that will maintain temp which could help with morning distraction. Here's one

https://www.cuisinart.com/shopping/appl ... /cpk-17p1/
by nps
Thu Jan 04, 2024 4:59 pm
Forum: Personal Finance (Not Investing)
Topic: H&R Block 2023 software offer
Replies: 246
Views: 38101

Re: H&R Block 2023 software offer

talzara wrote: Thu Jan 04, 2024 4:44 pm If you have Deluxe, then you already have the one free state program. You will not get a second one if you upgrade to Premium.
I think you meant Deluxe + State
by nps
Thu Jan 04, 2024 10:15 am
Forum: Personal Investments
Topic: Larry Swedroe on Total Bond
Replies: 40
Views: 13990

Re: Larry Swedroe on Total Bond

Unhandled wrote: Thu Jan 04, 2024 9:13 am
Unhandled wrote: Thu Jan 04, 2024 9:08 am ...
They are two different books.
...
On second thought, maybe Taylor already knew this. Perhaps he is making the point that it's strange that Larry's book "..Winning Bond Strategy..." doesn't even mention the largest bond fund in the world?
It does. I provided the citation above.
by nps
Thu Jan 04, 2024 7:59 am
Forum: Personal Investments
Topic: Larry Swedroe on Total Bond
Replies: 40
Views: 13990

Re: Larry Swedroe on Total Bond

As a boglehead newbie, I started reading the books and forums. Last night while reading Larry Swedroe's book "The Only Guide to a Winning Investment Strategy You'll Ever Need" I came upon his statement to avoid Vanguard Total Bond Fund because of its 1/3 allocation to Mortgage Backed Securities and duration of treasuries and corporate bonds. The forums seem like most bogleheads are recommending the Total Bond Fund for bond allocation. Am I reading this correctly? John John: I own Mr. Swedroe's book, "The Only Guide to a Winning Bond Strategy." Even though low-cost Total Bond Market is the largest bond fund in the world (mostly bought and sold by bond fund professional's), I was unable to find anything about TBM in the p...
by nps
Tue Jan 02, 2024 8:10 pm
Forum: Personal Finance (Not Investing)
Topic: 529 withdrawal at end of December 2024 for student graduating in May 2024
Replies: 12
Views: 788

Re: 529 withdrawal at end of December 2024 for student graduating in May 2024

aum wrote: Tue Jan 02, 2024 7:59 pm
I am aware of the new 529-->Roth. For the past nine years while in school, whatever my DD earned I let her keep that money and I matched that in her Roth. I've twin boys in second year of college now and I am waiting for more clarification on Secure 2.0 regarding 'earned income' for the transfer. There will be time at least for the graduate or med school for the boys when they wont be able to work at all and have some earned income and thats when I am hoping to fund their Roth from 529.
While there are still unclear details about the 529 to Roth process, I don't think the earned income requirement for the recipient is one of them
by nps
Sat Dec 30, 2023 8:41 pm
Forum: Personal Finance (Not Investing)
Topic: Fidelity as a one stop shop
Replies: 5973
Views: 1007770

Re: Fidelity as a one stop shop

pianisto wrote: Sat Dec 30, 2023 6:40 pm (Interested in literally any answer except "write less checks")
Order your own checks from Walmart or some other third party. They won't have any reference to Fidelity on them.
by nps
Fri Dec 29, 2023 8:42 pm
Forum: Personal Investments
Topic: Vanguard closing mutual fund prices for Dec 29?
Replies: 168
Views: 35500

Re: Vanguard closing mutual fund prices for Dec 29?

Badinvestor wrote: Fri Dec 29, 2023 8:04 pm In all past years, I wouldn't have cared at all -- let Vanguard take their time. But now I have to fill out IRS form 8606, and specifically I have to "Enter the value of all your traditional, traditional SEP, and traditional SIMPLE IRAs as of December 31, 2023" on line 6. If Vanguard really delays updating until January 2, I'm not sure I can use a printout of the holdings page on that date as backup for my response to line 6 in case of audit. We'll have to see how that works out.
You don't need a printout of the holdings page. Your Dec statement will show the value as of December 31, 2023.
by nps
Mon Dec 25, 2023 5:40 am
Forum: Investing - Theory, News & General
Topic: Vanguard Cash Plus Account Pilot
Replies: 462
Views: 98961

Re: Vanguard Cash Plus Account Pilot

watchnerd wrote: Sun Dec 24, 2023 7:13 am Is there a way to set up a recurring deposit on a schedule from my bank account to Cash Plus?

I didn't see any scheduling functions in the Deposit menu.
You could try scheduling it from the bank side
by nps
Fri Dec 22, 2023 5:27 am
Forum: Personal Investments
Topic: Tax free conversion of Vanguard Mutual Fund to ETF - how to do it?
Replies: 46
Views: 11596

Re: Tax free conversion of Vanguard Mutual Fund to ETF - how to do it?

SSSS wrote: Fri Dec 22, 2023 4:45 am I have a fund that's eligible for conversion but it's in an IRA -- in this case, is there any benefit to conversion versus simply selling the mutual fund and buying the ETF?
By converting you are getting the ETF shares at NAV without bid/ask spread or premium/discount. But you have to call.

If you buy there is a spread and possibly a premium or discount to NAV. Also the mutual fund sale will execute at close, but since you are likely buying the ETF before the close there may be a price difference there as well.
by nps
Thu Dec 21, 2023 7:42 am
Forum: Investing - Theory, News & General
Topic: Am I the only investor allocating more towards Bonds in 2024?
Replies: 149
Views: 30548

Re: Am I the only investor allocating more towards Bonds in 2024?

HeavyChevy wrote: Thu Dec 21, 2023 7:32 am What was the question?
The question was Am I the only investor allocating more towards Bonds in 2024?

The answer is no, you are not

For example, people invest in these funds

https://retirementplans.vanguard.com/VG ... tFunds.jsf
by nps
Wed Dec 20, 2023 5:30 am
Forum: Personal Finance (Not Investing)
Topic: WHere to hold Cash for short term
Replies: 5
Views: 817

Re: WHere to hold Cash for short term

VUSXX
Vanguard Treasury Money Market Fund

or

VCTXX
Vanguard California Municipal Money Market Fund

What are your marginal tax rates?
by nps
Wed Dec 20, 2023 5:20 am
Forum: Investing - Theory, News & General
Topic: I Bonds Mega Thread (I Bond Heads Rejoice!)
Replies: 6651
Views: 1201932

Re: I Bonds Mega Thread (I Bond Heads Rejoice!)

wellboy99 wrote: Tue Dec 19, 2023 9:00 pm What if the delivered gift has been redeemed? How can they reverse this gift transaction?
Not easily would be my guess. Though I don't doubt the government's ability to pursue collection of unpaid debts.
by nps
Sun Dec 17, 2023 11:20 am
Forum: Investing - Theory, News & General
Topic: I Bonds Mega Thread (I Bond Heads Rejoice!)
Replies: 6651
Views: 1201932

Re: I Bonds Mega Thread (I Bond Heads Rejoice!)

You Know What I Mean wrote: Sun Dec 17, 2023 9:59 am We have other April 2022 I Bonds in gift boxes that I plan to deliver in January 2024 (after the three-month interest penalty at 3.38% in Oct, Nov, and this month).
Interest penalty isn't a concern for gift delivery.
by nps
Fri Dec 15, 2023 3:55 pm
Forum: Investing - Theory, News & General
Topic: I Bonds Mega Thread (I Bond Heads Rejoice!)
Replies: 6651
Views: 1201932

Re: I Bonds Mega Thread (I Bond Heads Rejoice!)

I've practiced what I preached. My wife and I each acquired 80K of I bonds as gifts in our gift box in 2021 and delivered them to each other in 2023 in Treasury Direct without problem or rejection. Treasury Direct only prohibits acquiring I bonds for oneself directly above 10K once more than 10K of gift bonds are delivered into their direct account. Does anyone know anyone where more than 10K of saving bonds delivered and transferred into their direct account from a donor's gift box was rejected by Treasury Direct? It's not that Treasury Direct was "asleep at the wheel" and, thus, allowed the transaction, but because such transactions are not prohibited by Treasury Direct. I don't think that proves anything. There are posts here ...
by nps
Fri Dec 15, 2023 11:18 am
Forum: Investing - Theory, News & General
Topic: I Bonds Mega Thread (I Bond Heads Rejoice!)
Replies: 6651
Views: 1201932

Re: I Bonds Mega Thread (I Bond Heads Rejoice!)

I had the same kneejerk reaction to Cary's post. But after reading it more closely, I better understand what Cary is saying. However I do think it violates the spirit of Treasury Direct's guidance TD does state "Gift bonds count toward the limit of the recipient...", and that is in reference to the recipient's ability to purchase their own I Bonds discussed earlier on that TD webpage. But Cary's contention is that as long as the recipient of gift bonds is not buying any of their own I Bonds, that is the only limit that is explicitly being referenced. Everyone has been implicitly assuming the purchase limit is also a gifting limit. Nowhere in the TD guidance page does it state in uncertain terms that the limit on I Bond gifts that...
by nps
Fri Dec 15, 2023 9:52 am
Forum: Investing - Theory, News & General
Topic: I Bonds Mega Thread (I Bond Heads Rejoice!)
Replies: 6651
Views: 1201932

Re: Maximum number of I Bonds you can deliver from gift box?

Yes. I was responding to your original statement that a purchaser could not accumulate bonds as Cary described. There is a difference between what a purchaser of gift bonds may accumulate in one year and what may be delivered to a recipient in one year. His comment about "accumulating" I bonds that you questioned was in response to Cary's comment: it would seem to me that you should be able to deliver $ 100,000 face I bonds from the gift box to your spouse in year 11 because if your spouse would have hypothetically purchased directly $ 10,000 in each year 1-10, your spouse would have been able to accumulate $ 100,000 face I Bonds by year 11. If by "accumulate" he meant "deliver" then I would agree. Probably be...
by nps
Fri Dec 15, 2023 4:19 am
Forum: Investing - Theory, News & General
Topic: I Bonds Mega Thread (I Bond Heads Rejoice!)
Replies: 6651
Views: 1201932

Re: Maximum number of I Bonds you can deliver from gift box?

Darth Xanadu wrote: Thu Dec 14, 2023 10:59 pm
nps wrote: Thu Dec 14, 2023 7:31 pm
Tom_T wrote: Thu Dec 14, 2023 7:13 pm
Sure, you can keep buying gifts for the gift box, but you cannot deliver $100K worth in year 11 to the spouse.
Correct
So you are in agreement then that Cary's proposal to deliver $100k of I-bonds in a single year to one individual is impractical? I'm confused about your line of inquiry.
Yes. I was responding to your original statement that a purchaser could not accumulate bonds as Cary described. There is a difference between what a purchaser of gift bonds may accumulate in one year and what may be delivered to a recipient in one year.
by nps
Thu Dec 14, 2023 7:31 pm
Forum: Investing - Theory, News & General
Topic: I Bonds Mega Thread (I Bond Heads Rejoice!)
Replies: 6651
Views: 1201932

Re: Maximum number of I Bonds you can deliver from gift box?

Tom_T wrote: Thu Dec 14, 2023 7:13 pm
nps wrote: Thu Dec 14, 2023 3:44 pm
I should rephrase as a statement instead of a question. A purchaser can indeed accumulate amounts as proposed by Cary. For reference:
Cary wrote: Wed Dec 13, 2023 4:02 am 1. Using Treasury Direct, you buy $ 10,000 I Bonds each year 1 through 10 for your spouse as a gift in the gift box. Your spouse doesn't buy I bonds directly in any years 1-11.
Cary wrote: Wed Dec 13, 2023 4:02 am2. Same facts as question # 1 except you buy $ 100,000 I bonds only in year 9 for your spouse as a gift in the gift box.
Sure, you can keep buying gifts for the gift box, but you cannot deliver $100K worth in year 11 to the spouse.
Correct
by nps
Thu Dec 14, 2023 3:44 pm
Forum: Investing - Theory, News & General
Topic: I Bonds Mega Thread (I Bond Heads Rejoice!)
Replies: 6651
Views: 1201932

Re: Maximum number of I Bonds you can deliver from gift box?

Annual purchase limits of Series I savings bonds are "use it or lose it"; a purchaser can't accumulate amounts as you propose. Why not? You would have to somehow ask the Treasury. If you find out you can post back here with the answer. One can also Google the question "why are i bond sales limited" https://www.google.com/search?q=why+are+i+bond+sales+limited&sca_esv=590909283&source=hp&ei=fRp7ZdbWJe2I0PEPjrOJ4AI&iflsig=AO6bgOgAAAAAZXsojeVX7CGRnfThlTRqPnq8hgSQTNTW&ved=0ahUKEwiWid3Hmo-DAxVtBDQIHY5ZAiwQ4dUDCAw&uact=5&oq=why+are+i+bond+sales+limited&gs_lp=Egdnd3Mtd2l6Ihx3aHkgYXJlIGkgYm9uZCBzYWxlcyBsaW1pdGVkMggQIRgWGB4YHTIIECEYFhgeGB1I7klQAFjHOnABeACQAQCYAZUBoAHREaoBBDI2LjO4AQPIAQD4AQHCAgsQLhi...
by nps
Thu Dec 14, 2023 10:23 am
Forum: Investing - Theory, News & General
Topic: I Bonds Mega Thread (I Bond Heads Rejoice!)
Replies: 6651
Views: 1201932

Re: Maximum number of I Bonds you can deliver from gift box?

Discussion - For example #1, it would seem to me that you should be able to deliver $ 100,000 face I bonds from the gift box to your spouse in year 11 because if your spouse would have hypothetically purchased directly $ 10,000 in each year 1-10, your spouse would have been able to accumulate $ 100,000 face I Bonds by year 11. Annual purchase limits of Series I savings bonds are "use it or lose it"; a purchaser can't accumulate amounts as you propose. Why not? You would have to somehow ask the Treasury. If you find out you can post back here with the answer. One can also Google the question "why are i bond sales limited" https://www.google.com/search?q=why+are+i+bond+sales+limited&sca_esv=590909283&source=hp&...
by nps
Thu Dec 14, 2023 5:01 am
Forum: Investing - Theory, News & General
Topic: I Bonds Mega Thread (I Bond Heads Rejoice!)
Replies: 6651
Views: 1201932

Re: Maximum number of I Bonds you can deliver from gift box?

Darth Xanadu wrote: Wed Dec 13, 2023 8:14 am
Cary wrote: Wed Dec 13, 2023 4:02 am
Discussion - For example #1, it would seem to me that you should be able to deliver $ 100,000 face I bonds from the gift box to your spouse in year 11 because if your spouse would have hypothetically purchased directly $ 10,000 in each year 1-10, your spouse would have been able to accumulate $ 100,000 face I Bonds by year 11.
Annual purchase limits of Series I savings bonds are "use it or lose it"; a purchaser can't accumulate amounts as you propose.
Why not?
by nps
Mon Dec 11, 2023 5:23 am
Forum: Personal Finance (Not Investing)
Topic: Can I deduct my HSA/IRA contributions before I actually make the contributions?
Replies: 5
Views: 863

Re: Can I deduct my HSA/IRA contributions before I actually make the contributions?

Upgrayedd wrote: Mon Dec 11, 2023 12:08 am If I file my tax return before April 15, am I allowed to take the deductions for HSA/IRA contributions, but wait until April 15 to make the contributions?
Yes, at least for IRAs you can
by nps
Sun Dec 10, 2023 6:03 am
Forum: Personal Investments
Topic: Sell I bond for higher fixed rate?
Replies: 23
Views: 5829

Re: Sell I bond for higher fixed rate?

That's because all $50 and larger denominations are exact multiples of the $25 bond's value. So if the $25 changes by 1 cent, $10,000 would change by $4. So $4 is the minimum possible increment for $10K. https://eyebonds.info/ibonds/help.html Sorry, I'm not seeing why these six-month periods have the same increases every month: but this one has a single higher increase in June: and these have lower increases in September and March: The spreadsheet was posted by #Cruncher so I know it must be correct. I'm just try to understand these anomalies. Sorry if this is obvious to everyone but me. A $10,000 bond is really 400 $25 bonds as jeffyscott posted. A penny-level difference in interest for a $25 bond translates to a $4.00 difference for a $1...
by nps
Sat Dec 09, 2023 8:42 pm
Forum: Personal Investments
Topic: Saved 300k, No debt, No house. How should i best approach to achieve FIRE?
Replies: 31
Views: 5056

Re: Saved 300k, No debt, No house. How should i best approach to achieve FIRE?

ThePriceOfFreedom wrote: Sat Dec 09, 2023 7:25 pm i did my some simple research and the avg return for all of those single stocks are above 20% for the last the 10/20 years. i know they are too big too fail and i cant see them in the next 5-10 years being overtaken by their competitors - if they even have one tbh. i think many experiened investors would would def disagreed with my allocation because their philosopphy is diversify as much as you can if ur a new investor but i cant see the potential in that advice as it just retards your potential gains.
Yes it limits your potential gains but it limits your potential losses as well. Is that something you care about?
by nps
Sat Dec 09, 2023 8:33 pm
Forum: Investing - Theory, News & General
Topic: I Bonds Mega Thread (I Bond Heads Rejoice!)
Replies: 6651
Views: 1201932

Re: How to calculate value of my electronic I bonds on Jan 1 last year?

duricka wrote: Sat Dec 09, 2023 5:25 pm [duricka's thread has been merged into this on-going discussion. Moderator Pops1860]

Tax folks are interested in my I bonds.
If I bought 10k of bonds on date X, and current value is Y, how can I calculate what was its value on January 1 last year?
I found a few clickbait articles on the web, but wanted to check here too.

Thank you
"Tax folks are interested" - why? I bond interest is tax deferred unless you elect otherwise.
by nps
Sat Dec 09, 2023 5:56 am
Forum: Personal Finance (Not Investing)
Topic: Time to receive redeemed I Bonds from Treasury Direct
Replies: 11
Views: 1968

Re: Time to receive redeemed I Bonds from Treasury Direct

Mine took 2 days, but I wouldn't redeem on any other than the first business day of a month. I asked a question here about whether, if you schedule the day before the first business day of the month, you'll actually get the following month's interest, but I took the safe way out myself and waited until the first business day of the month to initiate my redemption. I think you should be able to tell based on the redemption amount it shows you before you click the final submit button. If it includes the next interest payment I would think that's what you'd get. But I haven't tried it. Now I'm waiting on a redemption request for paper bonds, and have no idea what year, much less what day, those will be processed. It sounds like you didn't sen...
by nps
Thu Dec 07, 2023 5:26 am
Forum: Personal Finance (Not Investing)
Topic: How to tax deduct upcoming losses in Roth IRA: Brilliant?
Replies: 53
Views: 7549

Re: How to tax deduct upcoming losses in Roth IRA: Brilliant?

Answer #1 While you can convert in-kind (ie, move shares instead of cash) between tax-deferred and Roth and possibly in a direct rollover , I'm not sure an indirect rollover (where you take possession of the asset for less than 60 days) will accept shares into the second Roth. Part of the problem of doing that is that the shares could increase in value during the deposit into the second Roth, thus making the indirect rollover amount be more than what was allowed to be received in the Roth. In fact, you would be depositing more shares than were sold when leaving the first Roth or be adding extra cash (as you suggest). In other words, I suspect the lawmakers/ IRS could foresee someone trying to do this, so put rules in place. For example, yo...
by nps
Tue Dec 05, 2023 9:11 pm
Forum: Personal Investments
Topic: fidelty money market fund choice
Replies: 14
Views: 3933

Re: fidelty money market fund choice

occambogle wrote: Tue Dec 05, 2023 8:31 pm Looking at SPAXX vs FDLXX for around $20k in a Fidelity brokerage account.
It is currently in the core fund SPAXX, but considering (manually) changing it into FDLXX. Must be an auto-liquidating fund.

Would I be correct in saying that:

With a marginal fed tax rate of 24%, and state tax of 5%, with current yields identical at 5.00% for both funds... that FDLXX would be the better choice? The MMF Optimizer spreadsheet says the after-tax rates would be 3.42% and 3.45% respectively. We're talking small amounts, but theoretically would there be any reason to choose SPAXX?
That math seems off
by nps
Sun Dec 03, 2023 6:50 am
Forum: Personal Finance (Not Investing)
Topic: Fidelity as a one stop shop
Replies: 5973
Views: 1007770

Re: Fidelity as a one stop shop

Django Ii wrote: Sun Dec 03, 2023 6:25 am I just received paper checks for my new CMA account. The cover sheet for one book of checks states:

"Please note that all checks written from this book are drawn from your core account. Other holdings in your Fidelity Account will not be automatically redeemed to cover checks that you write. To avoid bouncing checks, please make sure you have available funds in your core account."

This seems to contradict what others are reporting. Maybe this is a rule for new CMA accounts, or maybe I'm just missing something?
viewtopic.php?p=7522245#p7522245
by nps
Sat Dec 02, 2023 8:12 pm
Forum: Personal Investments
Topic: New to Tax Loss Harvesting
Replies: 8
Views: 1474

Re: New to Tax Loss Harvesting

tcal511 wrote: Sat Dec 02, 2023 10:49 am 4. I have read that the wash sale rule applies to purchases 30 days before and after the sale. I stopped contributing to this fund 30 days ago but not sure I'm understanding the rule correctly. Does this mean if I want to TLH fund A, I would need to refrain from buying it for 30 days, then sell, then wait 30 days if planning to re-purchase? So basically no funds purchased or re-invested 30 days before and 30 days after?
Also, purchasing less than 30 days before doesn't matter if you're selling all owned shares
by nps
Sat Dec 02, 2023 5:49 pm
Forum: Personal Investments
Topic: Sell I bond for higher fixed rate?
Replies: 23
Views: 5829

Re: Sell I bond for higher fixed rate?

asoka wrote: Sat Dec 02, 2023 5:13 pm If my spouse has already gifted me an ibond purchased in 5/22 (in Jan 23, so currently earning 3.94%), can I redeem it and then replace it with a new buy for myself ?

I presume the first gift delivery "uses up" my quota for the year, but wasn't sure, so asking for clarity from more experienced folks

TIA
You can redeem it. But if the principal amount of the gift delivered in Jan 23 was $10,000 then yes, your purchase quota would be used up and you'd need to wait until next year to make a purchase
by nps
Wed Nov 29, 2023 7:51 pm
Forum: Personal Finance (Not Investing)
Topic: Fidelity as a one stop shop
Replies: 5973
Views: 1007770

Re: Fidelity as a one stop shop

I feel like the various options have been discussed many times in this thread. The Bogleheads Wiki article for this thread should answer your questions. Fair point... :-) And I had read those very useful articles. I guess I was just wanting to get real-world confirmation that it worked for auto-paying credit card bills, which it seems it does. One other question - is there some advantage/disadvantage to (a) having the credit card pull the money from CMA account via ACH, vs (b) adding the credit card account to Billpay at the Fidelity end and using that method? I've never used billpay before at all so you'll have to excuse the newbie question. If something goes wrong your recourse to the credit card company is more limited if you're pushing...
by nps
Tue Nov 28, 2023 8:33 pm
Forum: Personal Finance (Not Investing)
Topic: Fidelity as a one stop shop
Replies: 5973
Views: 1007770

Re: Fidelity as a one stop shop

Nathan Drake wrote: Tue Nov 28, 2023 11:45 am Posting an update on a previous issue I had setting up ACH transfers to pay my Rent. My apartment complex uses Plaid for verification

The normal accounting number (longer digits) you find online did not work for me.

However, I ordered physical checks and the shorter account number worked just fine!

Thanks to everyone that suggested this method - and if anyone has similar issues setting up an ACH transfer, try the number that’s physically written on the Checks
Glad that worked out for you! If you already have checks or aren't opposed to getting them, this is often the simplest solution to those issues.
by nps
Tue Nov 28, 2023 5:07 am
Forum: Investing - Theory, News & General
Topic: New Bogleheads podcast. Episode 64: Victor Haghani and James White, ”The Missing Billionaires”
Replies: 51
Views: 14754

Re: New Bogleheads podcast. Episode 64: Victor Haghani and James White, ”The Missing Billionaires”

simplesimon wrote: Tue Nov 28, 2023 4:49 am I had similar takeaways and wondered if "age in bonds" or "age-X in bonds" or following a glide path similar to target date funds is a simple way to do it.
They address this strategy in the book, and claim that allocation to equities should instead be based on expected excess returns, risk, and the investor's risk aversion. Under their stated scenario, they claim that a 10 percent greater starting wealth would be needed under age in bonds in order to generate the same expected lifetime utility as an approach that follows their model.
by nps
Sat Nov 25, 2023 10:58 am
Forum: Investing - Theory, News & General
Topic: I Bonds Mega Thread (I Bond Heads Rejoice!)
Replies: 6651
Views: 1201932

Re: I Bonds Mega Thread (I Bond Heads Rejoice!)

I plan to sell Series I-bonds that I purchased in April 2022 at the 0% fixed rate. I’m hoping to get confirmation (or correction, if needed) that my approach is optimal in terms of timing. My plan is to sell them on January 2, 2024. This will result in the 3-month penalty (consisting of Oct, Nov, and Dec of 2023) being entirely at the 3.38% annualized composite rate. Does this sound correct/optimal? Yes, this is the right strategy, and I am planning to do the same. If you want to keep inflation protection, you can replace these 0% I-bonds with new I-bonds yielding 1.3%, or with TIPS likely at an even higher yield, and come out ahead. Why is the right strategy to wait until three months have elapsed at the lowest rate? That's been consisten...
by nps
Sat Nov 25, 2023 10:22 am
Forum: Investing - Theory, News & General
Topic: I Bonds Mega Thread (I Bond Heads Rejoice!)
Replies: 6651
Views: 1201932

Re: I Bonds Mega Thread (I Bond Heads Rejoice!)

I plan to sell Series I-bonds that I purchased in April 2022 at the 0% fixed rate. I’m hoping to get confirmation (or correction, if needed) that my approach is optimal in terms of timing. My plan is to sell them on January 2, 2024. This will result in the 3-month penalty (consisting of Oct, Nov, and Dec of 2023) being entirely at the 3.38% annualized composite rate. Does this sound correct/optimal? Yes, this is the right strategy, and I am planning to do the same. If you want to keep inflation protection, you can replace these 0% I-bonds with new I-bonds yielding 1.3%, or with TIPS likely at an even higher yield, and come out ahead. Why is the right strategy to wait until three months have elapsed at the lowest rate? That's been consisten...
by nps
Thu Nov 23, 2023 9:51 am
Forum: Personal Investments
Topic: What is the best fund or ETF for taxable total world stock market?
Replies: 20
Views: 2907

Re: What is the best fund or ETF for taxable total world stock market?

abuss368 wrote: Thu Nov 23, 2023 9:44 am
DPEMD wrote: Tue Nov 21, 2023 10:49 am
Thanks for the reply. Do you know how much the foreign tax credit is worth as a percentage of the investment?
Hi DPEMD -

I use a back of the napkin 8.00% - 10.00% as a rough estimate.

Hope this helps.

Tony
Yes but as a percentage of the dividends, not as a percentage of the investment