Many times it's worth it to "waste" the foreign tax creditfortunefavored 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.
Search found 1627 matches
- 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
- 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...
- 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
They did just publish this article (paywall):Ferdinand2014 wrote: ↑Wed Dec 28, 2022 5:09 amThe authors have intentions of doing exactly that.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?
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.
- 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.
- 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
I would put it on a credit cardkojima 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?
https://www.irs.gov/payments/pay-your-t ... redit-card
- 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...
- 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...
- 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
Fidelity does this
Fidelity Treasury Money Market Fund FZFXX
Fidelity Treasury Only Money Market Fund FDLXX
- 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...
- 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
- 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
- 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
There are kettles that will maintain temp which could help with morning distraction. Here's oneHorton 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.
https://www.cuisinart.com/shopping/appl ... /cpk-17p1/
- Thu Jan 04, 2024 4:59 pm
- Forum: Personal Finance (Not Investing)
- Topic: H&R Block 2023 software offer
- Replies: 246
- Views: 38101
- Thu Jan 04, 2024 4:56 pm
- Forum: Personal Finance (Not Investing)
- Topic: Can Somebody Explain how HSA/HDHP is Always the Obvious Choice?
- Replies: 64
- Views: 8007
Re: Can Somebody Explain how HSA/HDHP is Always the Obvious Choice?
OP, do you use a FSA?
- 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
- 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...
- 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
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 themaum 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.
- Sat Dec 30, 2023 8:41 pm
- Forum: Personal Finance (Not Investing)
- Topic: Fidelity as a one stop shop
- Replies: 5973
- Views: 1007770
- 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?
You don't need a printout of the holdings page. Your Dec statement will show the value as of December 31, 2023.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.
- Mon Dec 25, 2023 5:40 am
- Forum: Investing - Theory, News & General
- Topic: Vanguard Cash Plus Account Pilot
- Replies: 462
- Views: 98961
- Fri Dec 22, 2023 7:36 am
- Forum: Investing - Theory, News & General
- Topic: Looking for an ETF vs index find case study
- Replies: 4
- Views: 463
- 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?
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.
- 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?
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
- 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?
Vanguard Treasury Money Market Fund
or
VCTXX
Vanguard California Municipal Money Market Fund
What are your marginal tax rates?
- 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
- 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!)
Interest penalty isn't a concern for gift delivery.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).
- 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 ...
- 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...
- 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...
- 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?
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.Darth Xanadu wrote: ↑Thu Dec 14, 2023 10:59 pmSo 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.
- 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?
CorrectTom_T wrote: ↑Thu Dec 14, 2023 7:13 pmSure, you can keep buying gifts for the gift box, but you cannot deliver $100K worth in year 11 to the spouse.
- 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...
- 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&...
- 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?
Why not?Darth Xanadu wrote: ↑Wed Dec 13, 2023 8:14 amAnnual purchase limits of Series I savings bonds are "use it or lose it"; a purchaser can't accumulate amounts as you propose.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.
- 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
- 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...
- 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?
Yes it limits your potential gains but it limits your potential losses as well. Is that something you care about?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.
- 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?
"Tax folks are interested" - why? I bond interest is tax deferred unless you elect otherwise.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
- 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...
- 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...
- 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
That math seems offoccambogle 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?
- 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
viewtopic.php?p=7522245#p7522245Django 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?
- 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
Also, purchasing less than 30 days before doesn't matter if you're selling all owned sharestcal511 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?
- 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?
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 purchaseasoka 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
- 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...
- 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
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.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
- 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”
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.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.
- 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...
- 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...
- 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?
Yes but as a percentage of the dividends, not as a percentage of the investment