Search found 3886 matches

by TropikThunder
Wed Sep 22, 2021 1:58 pm
Forum: Investing - Theory, News & General
Topic: Dividend investing?
Replies: 58
Views: 8605

Re: Dividend investing?

gougou wrote: Wed Sep 22, 2021 12:33 pm OK, I'd like to hear your opinion why MPLX or SHLX are facing imminent collapse. Or EPD, MMP which pay in the 8%+ to 9%. And maybe HK.3988 (Bank of China) that pays 8.6% somehow will also collapse? Maybe you can change my mind so I'll sell.
MLPX has a negative CAGR of almost 5% since inception in 2013 if you didn’t reinvest the dividends. How is that sustainable? I thought dividend funds were supposed to return to their original NAV after a distribution. Is it returning capital as well as income?
by TropikThunder
Wed Sep 22, 2021 12:02 am
Forum: Personal Investments
Topic: Vanguard Mutual Funds to ETF
Replies: 23
Views: 2861

Re: Vanguard Mutual Funds to ETF

tashnewbie wrote: Tue Sep 21, 2021 3:19 pm YMMV, but I think Vanguard reimbursed my account transfer fees when I transferred a couple IRAs from Schwab.
Wait, you’re saying Vanguard paid your transfer fee to leave Schwab? Unheard of!
by TropikThunder
Tue Sep 21, 2021 11:59 pm
Forum: Personal Investments
Topic: 401(k) Loans
Replies: 47
Views: 5737

Re: 401(k) Loans

placeholder wrote: Wed Sep 15, 2021 1:25 am
khram wrote: Mon Sep 13, 2021 4:46 am In general, I think you can't contribute to your 401k until the loan is paid back,
Where is the evidence that this is generally true because it sure wasn't at megacorp when I worked there.
I must have caught a unicorn then. I took a 403b loan from my TIAA account for a down payment. The loan amount is still invested (in a Traditional account earning 3% interest itself) which I include as part of my fixed income allocation although I can’t use it for rebalancing; I can still make contributions and receive a match; and if I leave my employer I can continue making monthly payments under the current terms. I haven’t found the downside yet.
by TropikThunder
Tue Sep 21, 2021 11:48 pm
Forum: Personal Finance (Not Investing)
Topic: Verizon up to $1,000 per phone trade-in promotion experience
Replies: 51
Views: 9640

Re: Verizon up to $1,000 per phone trade-in promotion experience

rage_phish wrote: Mon Sep 20, 2021 11:02 pm
GaryA505 wrote: Mon Sep 20, 2021 4:08 pm I did some of these these promos until I realized that I was really paying the full price, or more, over the 24-month contract. It's just a sales trick, but it works.
How so?
Yeah it doesn’t add to “more than full price” for me. I got a new 12 Pro Max a couple months ago (feels old already!!) when I traded in my 8 Plus. After upfront sales tax of $120, I will pay $15/mo for 24 months ($360) for a $1,200 phone.
by TropikThunder
Tue Sep 21, 2021 11:44 pm
Forum: Personal Finance (Not Investing)
Topic: Verizon up to $1,000 per phone trade-in promotion experience
Replies: 51
Views: 9640

Re: Verizon up to $1,000 per phone trade-in promotion experience

I looked into it but couldn’t made the numbers work. I am on a Verizon unlimited prepaid plan for $50/mo. To trade my phone in for $1000 I would need to change to a contract of $80/mo for at least two years. Interesting, I’m not sure why that is. In our case we have 3 phones on an unlimited plan, total cost per month is $150 which seems like the same rate you are currently paying. Are you sure your not looking at the new cost per month of a new financed device without factoring in the discount? On the page there is a tab that says “full retail price” and then after you select your trade in device it gives you the net upfront cost to pay for the upgrade, there should be no changes to your bill (as far as I know) Single line plans are more e...
by TropikThunder
Tue Sep 21, 2021 11:16 pm
Forum: Personal Finance (Not Investing)
Topic: Why aren't there mortgage options for >2 points
Replies: 4
Views: 1160

Re: Why aren't there mortgage options for >2 points

I was wondering if anyone knew why there are no advertised mortgage rates for more than ~2 points. When comparing the APR of the full loan it is clear that from most banks there are diminishing returns in paying higher up front points. That doesn't explain why banks don't advertise 3 and 4 point loans, however. Maybe they don’t offer them because no one in their right mind would pay that much for points? The average time before a mortgage is paid or refinanced is only ~5 years, so paying big points is never a good idea when it gives you like a 12 or 15 year break even point. ETA: here’s a real life example. On LenderFi right now, I can get a $300,000 mortgage for: - $5,535 in points for 2.375%, giving me $1,166 P&I, or - $1,658 lender ...
by TropikThunder
Tue Sep 21, 2021 11:11 pm
Forum: Investing - Theory, News & General
Topic: Dividend investing?
Replies: 58
Views: 8605

Re: Dividend investing?

I for one am not convinced that a total stock fund held with a bond fund will outperform say a total equity portfolio that holds a slug of dividend producers in the equity mix. Substituting a dividend fund for a bond as Malkiel suggested seems rational to me. I know the Bogleheads will say, "but stocks are not bonds and are much more riskier" to which I say, "You just have not been tested so far to learn just how risky your bond funds will prove to be." I guess it is question of picking your poison. The goal of a reasonable stock/bond allocation is not to win more, it’s to lose less. Of course substituting dividend stocks in place of bonds is expected to outperform in the long run. But that’s because it’s 100% stocks, i...
by TropikThunder
Tue Sep 21, 2021 11:04 pm
Forum: Investing - Theory, News & General
Topic: Dividend investing?
Replies: 58
Views: 8605

Re: Dividend investing?

Ocean77 wrote: Tue Sep 21, 2021 2:54 pm Different sectors shine at different times.
That’s why people hold TSM or S&P500 funds: you hold all the sectors at their market weight so that you already have next year’s winners.
by TropikThunder
Mon Sep 20, 2021 1:05 pm
Forum: Investing - Theory, News & General
Topic: Vanguard Patented a Way to Avoid Taxes on Mutual Funds
Replies: 7
Views: 1559

Re: Vanguard Patented a Way to Avoid Taxes on Mutual Funds

nisiprius wrote: Mon Sep 20, 2021 12:54 pm I knew about it but I hadn't realized the extent of it. And the charts make it clear why they called "heartbeat trades."
There was a three page thread on this article when it came out in Mar 2019, not that everyone remembers everything they read.
viewtopic.php?f=10&t=292801&hilit=Heart ... +Bloomberg
by TropikThunder
Mon Sep 20, 2021 12:39 pm
Forum: Investing - Theory, News & General
Topic: Vanguard Patented a Way to Avoid Taxes on Mutual Funds
Replies: 7
Views: 1559

Re: Vanguard Patented a Way to Avoid Taxes on Mutual Funds

pkcrafter wrote: Mon Sep 20, 2021 12:08 pm Vanguard Patented a Way to Avoid Taxes on Mutual Funds

I'm not sure how well known this is since it hasn't been mentioned in a couple of years.

https://www.bloomberg.com/graphics/2019 ... tax-dodge/


Paul
ETF’s are more efficient than mutual funds, except at Vanguard because of their patented dual share class. This gets mentioned every day.
by TropikThunder
Mon Sep 20, 2021 1:56 am
Forum: Investing - Theory, News & General
Topic: Dividend investing?
Replies: 58
Views: 8605

Re: Dividend investing?

CyclingDuo wrote: Sun Sep 19, 2021 8:58 am
Hey, dave1054. You more or less asked the exact same question back on March 10th of 2021

You also asked the same question on August 7th, 2020

CyclingDuo
And they probably got the same answers from the same people, too. Not sure what more they’re looking for.
by TropikThunder
Sun Sep 19, 2021 5:32 pm
Forum: Investing - Theory, News & General
Topic: In the future, the biggest companies will still be...
Replies: 35
Views: 4453

Re: In the future, the biggest companies will still be...

I don't see how a newcomer can enter and challenge the hegemony of the leaders who have managed to take the power during the first phase of the internet age. And many of these companies are not really that young - Intel was founded in 1968, Microsoft and Apple in the 1970s. Amazon was founded in 1995, at the very start of the internet as a market place. The only surprise newcomer is Tesla. I guess you missed the part that the key word behind most new companies/ideas now is “disrupt”? There’s an entire generation of kids growing up now having been shown that the key to success is blowing up existing companies/systems/processes. Why do you think there can’t be another Tesla? But as long as we’re making predictions, I think the next big playe...
by TropikThunder
Sun Sep 19, 2021 5:18 pm
Forum: Personal Finance (Not Investing)
Topic: Hospital Bill Nonsense [Appealing a hospital bill]
Replies: 67
Views: 7495

Re: Hospital Bill Nonsense [Appealing a hospital bill]

AnEngineer wrote: Sun Sep 19, 2021 4:18 pm Are you saying providers at an ER get to somehow ignore the ACA rule that emergency visits are in network? (I guess it's actually the insurance that would be ignoring the law.)
No no, it would still only be reimburseable at in-network rate (and going after the patient for overages is prohibited). I’m just saying that the ED physician charges aren’t included in the $200 that OP thinks it will cost. And that the in-network reimbursement rates that that ED group negotiated are unknown. The policy is that ED charges are always in-network but those rates are not the same in all situations/locations etc.
by TropikThunder
Sun Sep 19, 2021 3:23 pm
Forum: Personal Finance (Not Investing)
Topic: Hospital Bill Nonsense [Appealing a hospital bill]
Replies: 67
Views: 7495

Re: Hospital Bill Nonsense [Appealing a hospital bill]

It is PPO through United HealthCare. I called them yesterday and they confirmed that procedures that are done during ER visit are fully covered by the plan and I will only need to pay $200 copy. There’s no way your insurer can guarantee that’s all you’d have to pay at the ED. Most hospital ED’s are staffed by independent physician groups that don’t work for the hospital. They don’t have to accept the same insurance that the hospital does, and even if they accept the same plans, they may have negotiated different reimbursement schedules. The procedure may well have been covered but you would likely have received provider charges instead, there’s no way for us to tell. True, but the combination of insurance treating ER visits as in network a...
by TropikThunder
Sun Sep 19, 2021 3:46 am
Forum: Investing - Theory, News & General
Topic: S&P 500 International Exposure
Replies: 120
Views: 9560

Re: S&P 500 International Exposure

And we certainly don't ignore the past performance you allude to. If we did, we couldn't accuse country-pickers of performance chasing. You do realize that passive indexing is by itself inherently performance chasing, right? Yet we all still do it. Why? Because it worked well in the past, so double dose of performance chasing, actually. What is your specific definition of performance chasing? Increase holdings of what has done better, and decrease holdings of what has done worse. This is exactly what happens with passive indexing. That is largely by letting it drift, no? Not by specifically purchasing *more* of the recent winners, particularly if you are buying and holding the index fund yourself. If you want to view buying and holding an ...
by TropikThunder
Sat Sep 18, 2021 6:00 pm
Forum: Personal Finance (Not Investing)
Topic: Hospital Bill Nonsense [Appealing a hospital bill]
Replies: 67
Views: 7495

Re: Hospital Bill Nonsense [Appealing a hospital bill]

creator wrote: Sat Sep 18, 2021 11:46 am It is PPO through United HealthCare. I called them yesterday and they confirmed that procedures that are done during ER visit are fully covered by the plan and I will only need to pay $200 copy.
There’s no way your insurer can guarantee that’s all you’d have to pay at the ED. Most hospital ED’s are staffed by independent physician groups that don’t work for the hospital. They don’t have to accept the same insurance that the hospital does, and even if they accept the same plans, they may have negotiated different reimbursement schedules. The procedure may well have been covered but you would likely have received provider charges instead, there’s no way for us to tell.
by TropikThunder
Sat Sep 18, 2021 2:44 pm
Forum: Investing - Theory, News & General
Topic: Ray Dalio: Is He Saying Bonds Are Done?
Replies: 84
Views: 13021

Re: Ray Dalio: Is He Saying Bonds Are Done?

UpperNwGuy wrote: Sat Sep 18, 2021 2:31 pm
rockstar wrote: Fri Sep 17, 2021 7:17 pm If I want to slowly lose money over the long run, I'll buy bonds. I Bonds seem like the exception before taxes.
If I want my portfolio to grow over the long run, I'll buy a mix of equities and bonds. It's a proven formula.
It will grow better without the bonds, over the long run.
by TropikThunder
Fri Sep 17, 2021 6:11 pm
Forum: Investing - Theory, News & General
Topic: S&P 500 International Exposure
Replies: 120
Views: 9560

Re: S&P 500 International Exposure

mkpainter wrote: Fri Sep 17, 2021 4:07 pm So with that international exposure through the S&P 500, that Jack Bogle has clearly stated, why do I still need an international index fund?
US vs International is a currency and sector bet as much as it is a geographic bet. I don’t have the numbers in front of me, but there are significant differences in sector weighting between total US and total Int’l (US is higher in Tech, Int’l is higher in Financial etc).

From another post I made:
- 7 of the 10 biggest heavy equipment manufacturers
- 6 of the 10 biggest power tool manufacturers
- All of the 10 biggest mining companies
- 6 of the 10 biggest banks
- 8 of the 10 biggest carmakers
- 6 of the 10 biggest pharmaceutical companies
etc, etc, etc
Are all international.
by TropikThunder
Fri Sep 17, 2021 6:07 pm
Forum: Investing - Theory, News & General
Topic: S&P 500 International Exposure
Replies: 120
Views: 9560

Re: S&P 500 International Exposure

stan1 wrote: Fri Sep 17, 2021 6:03 pm
If you are willing to accept a source of information other than Jack Bogle
Heretic!
by TropikThunder
Fri Sep 17, 2021 6:02 pm
Forum: Personal Finance (Not Investing)
Topic: When to take debt to defer taxable gains for no/lower tax?
Replies: 19
Views: 2372

Re: Avoid capital gains tax with "short term" 32% interest rate cash advance loans?

harikaried wrote: Fri Sep 17, 2021 5:00 pm I'm trying to figure out how much interest over some time is worthwhile to pay to not pay capital gains tax as we did TLH last year with VTI/SCHB close to 100% gains. Maybe another way to look at it is in order to access $XX cash, can I pay a bank $YY interest that is less than $ZZ taxes to government?
Are the shares with ~100% gain the only available ones to sell?

People twist themselves into pretzels to avoid taxes, even if they end up with less money afterwards.
by TropikThunder
Wed Sep 15, 2021 5:56 pm
Forum: Investing - Theory, News & General
Topic: Parking Free cash in MMF on Schwab. Best MMF?
Replies: 28
Views: 3307

Re: Parking Free cash in MMF on Schwab. Best MMF?

Doc wrote: Wed Sep 15, 2021 1:16 pm You are correct that the money involved is trivial. But the timing issue is not. If I have a T-bill I can sell it and reinvest or withdraw the money in a matter of minutes. The savings account is another matter entirely.
How is the savings account “another matter”? You really can’t withdraw money from a savings account easier then selling T-bills?
by TropikThunder
Wed Sep 15, 2021 1:59 pm
Forum: Investing - Theory, News & General
Topic: Bond fund/etf behavior
Replies: 6
Views: 1028

Re: Bond fund/etf behavior

In other words, for bond funds and ETFs, is more of the price derived from its underlying assets (bond yield) or the demand for the fund or ETF itself ? The “price” of a mutual fund is determined differently than the “price” of an ETF if by price we mean what you would have to pay to buy it. Mutual fund NAV’s are calculated at the end of the trading day based on the performance of the underlying assets. IMO it’s easier to wrap your head around with a stock mutual fund (if the S&P500 goes up, then VFIAX will go up) but the process is the same for bond funds. If the underlying bonds decrease in value (linked to an increase in yield), then the NAV of the fund decreases as well. As for ETF’s, the market price and the NAV are frequently dis...
by TropikThunder
Tue Sep 14, 2021 7:14 pm
Forum: Investing - Theory, News & General
Topic: Parking Free cash in MMF on Schwab. Best MMF?
Replies: 28
Views: 3307

Re: Parking Free cash in MMF on Schwab. Best MMF?

NewInvestor306 wrote: Tue Sep 14, 2021 11:43 am I am on Schwab and wanted to see where others have placed some cash, or seek some advice as to what to look for or avoid. I am assuming I can put the cash into this MMF, about $15-30k and just set it and forget it for a while.
Consider a Schwab High Yield Savings Account. Current yield on that is 0.05% compared to the current yield on the Schwab MMF SWVXX, which is only 0.03%. And as 123 said, the MMF is kind of awkward to work with.

https://www.schwab.com/savings
https://www.schwabassetmanagement.com/p ... und-yields
by TropikThunder
Tue Sep 14, 2021 7:10 pm
Forum: Investing - Theory, News & General
Topic: Parking Free cash in MMF on Schwab. Best MMF?
Replies: 28
Views: 3307

Re: Parking Free cash in MMF on Schwab. Best MMF?

123 wrote: Tue Sep 14, 2021 12:04 pm Based on my experience with Schwab all their MMFs are "purchased" MMFs and are not "sweepable". What this means is that you have to do a mutual fund "buy" and a separate "sell" to get in and out of the MMF (of course you can reinvest dividends/interest). So if you decide to make a securities purchase you have to do a separate trade to move the cash from the MMF to your cash settlement account.
That was my experience as well. I use Schwab for my everyday checking account and had planned to use SWVXX to park what I didn't need in my checking account but having to actually do a sell transaction and wait for it to settle before transferring to checking was a deal-breaker.
by TropikThunder
Tue Sep 14, 2021 12:14 pm
Forum: Personal Investments
Topic: Selling a mutual fund investment (VTSAX) right before Record date - what happens to dividend that would have been paid?
Replies: 24
Views: 3289

Re: Selling a mutual fund investment (VTSAX) right before Record date - what happens to dividend that would have been pa

I've heard this before, but I've never really understood it as far as 'funds' because I've never really seen it when I look at the daily values. I understand what you're saying, but I haven't felt like I've seen evidence when I look at daily prices. According to this, you should see fund prices tend to fall on the day after a dividend is paid but that doesn't seem to be the case. (Of course, the fall i value caused by the dividend payment would be offset by any market gains (or increased by any market losses) that day, but the trend would be for a decrease in value, and I just haven't felt I've seen that). You’re on the right track the change in NAV based on the dividend is mostly masked by market gains and losses. When you say “the trend ...
by TropikThunder
Mon Sep 13, 2021 11:48 pm
Forum: Personal Finance (Not Investing)
Topic: Changed jobs - does it make any sense to overcontribute to my 401k to increase company match?
Replies: 12
Views: 1840

Re: Changed jobs - does it make any sense to overcontribute to my 401k to increase company match?

LadyGeek wrote: Mon Sep 13, 2021 7:52 am Discussions of dishonest behavior or bypassing the law is totally unacceptable. I removed a post encouraging over-contributing to the account and not reporting the overcontribution.
Sincere question, is there actually an obligation to report the over contribution? Sprit Rider commented on numerous threads re: 401k over contribution and they consistently said there was no obligation to correct the overage, and that the custodian has no obligation to help you correct the mistake.

viewtopic.php?p=4733196#p4733196
by TropikThunder
Mon Sep 13, 2021 2:12 pm
Forum: Personal Investments
Topic: 401(k) Loans
Replies: 47
Views: 5737

Re: 401(k) Loans

exodusNH wrote: Mon Sep 13, 2021 1:42 pm You pay the interest with after-tax money as well. When you take your withdrawals, you will pay ordinary income rates on the interest and whatever it's grown to. This is the only money that's double-taxed. But that money has had the opportunity to grow and be rebalanced without tax concerns.
+1. You’d be paying back a conventional loan with after-tax money too, so that’s a wash.
by TropikThunder
Mon Sep 13, 2021 2:08 pm
Forum: Personal Investments
Topic: 401(k) Loans
Replies: 47
Views: 5737

Re: 401(k) Loans

Never do a 401k loan unless you absolutely have to. Many people who have had one lost their job and had to repay their loan within 60 days to avoid paying federal and state income taxes on the loan balance in addition to the 10% penalty. No thanks. This has changed to be due at the tax filing date (including extensions) rather than only 60 days. That's far better than the way it used to be. Some plans also allow you to continue making payments under the original terms even if you separate from employment (mine does). Some plans also allow the loan collateral to remain invested, in my case in the TIAA Traditional annuity paying a guaranteed 3.00% interest. So that money is not out of the market, it’s in my fixed income allocation. 401k loan...
by TropikThunder
Sun Sep 12, 2021 11:59 pm
Forum: Personal Investments
Topic: WHY is it a good practice to convert to Roth during a market downturn?
Replies: 29
Views: 4257

Re: WHY is it a good practice to convert to Roth during a market downturn?

Lee_WSP wrote: Sun Sep 12, 2021 11:12 am You typically only have a few years of conversions before RMDs hit. It doesn't really make a difference. Ie, this strategy will eek out a few extra basis points. But it is cathartic.
OP was asking about conversions during a market downturn, not after retirement.
by TropikThunder
Sun Sep 12, 2021 1:21 pm
Forum: Investing - Theory, News & General
Topic: VTI and performance contribution from Tesla, Zoom, and BioNTech
Replies: 9
Views: 2201

Re: VTI and performance contribution from Tesla, Zoom, and BioNTech

But mechanically and procedurally, since the VTI is market cap weighted, doesn't that mean that it adds or subtracts share counts to adjust to the benchmark index periodically for each of it's 3,000+ stocks or does it hold the exact same split adjusted amount of shares of Tesla today as it did on 12/31/10? VTI is market cap weighted, not share count weighted. The weight of each company in the index is share price x number of shares outstanding (float adjusted to be more precise). If the share price of say Tesla goes up, the weight of Tesla in the index goes up without needing to change the number of shares. A common (mistaken) criticism of cap weighted indexes is that they have to buy and sell to track the index when the exact opposite is ...
by TropikThunder
Sun Sep 12, 2021 11:21 am
Forum: Personal Finance (Not Investing)
Topic: Capital One is at it again
Replies: 389
Views: 89741

Re: Capital One is at it again

JoMoney wrote: Sun Sep 12, 2021 10:00 am
BogleFan510 wrote: Sun Sep 12, 2021 9:56 am And yet we still see threads worrying about rampant inflation. Nice retrospective.
July 2020 - July 2021 CPI has been over 5%
https://www.bls.gov/data/inflation_calculator.htm
But it was less than 1% from July 2019 to July 2020, so from 2019 to 2021 it’s 6.4% which is roughly 3% per year. From 2018 it’s 8.33%, which is about 2.7% per year. That’s not a crisis.

Using July 2020 as the starting point is a little disingenuous. Almost as if some large economic downturn had artificially lowered prices in summer 2020, but I can’t think of anything ….
by TropikThunder
Sat Sep 11, 2021 9:01 pm
Forum: Personal Finance (Not Investing)
Topic: Anyone with experience/knowledge about a 401k loan for down payment?
Replies: 17
Views: 1529

Re: Anyone with experience/knowledge about a 401k loan for down payment?

(2) How should I time the loan? Is it better to just take the loan out and have the money on hand prior to house shopping? I figure I can always just pay the loan off if I end up not using all the money or even any of it. Or do most people take the loan out after their offer has been accepted? There is "too early" and there is certainly "too late". In my case, I was buying new construction so there were several months between accepted contract and closing; that won't always be the case. You don't want to pull it out of the market unnecessarily early because you may lose out on some market gains (then again, the market may decline while you wait). But you obviously want it in your account ready to wire to the settlement ...
by TropikThunder
Sat Sep 11, 2021 8:41 pm
Forum: Personal Finance (Not Investing)
Topic: Anyone with experience/knowledge about a 401k loan for down payment?
Replies: 17
Views: 1529

Re: Anyone with experience/knowledge about a 401k loan for down payment?

(1) Does the loan count against DTI for purposes of the mortgage loan? Googling this subject seems to suggest NO, but also that some lenders may count it as debt for DTI. No. I've done it twice for help with down-payments, once to get to 20% in a competitive market, and another time just as a bridge loan to myself. Neither time did it affect my financing. (2) How should I time the loan? Is it better to just take the loan out and have the money on hand prior to house shopping? I figure I can always just pay the loan off if i end up not using all the money or even any of it. Or do most people take the loan out after their offer has been accepted? One needs an signed contract to get a 10yr 401k loan , while one can get a 5yr 401k loan for any...
by TropikThunder
Sat Sep 11, 2021 8:18 pm
Forum: Personal Finance (Not Investing)
Topic: Anyone with experience/knowledge about a 401k loan for down payment?
Replies: 17
Views: 1529

Re: Anyone with experience/knowledge about a 401k loan for down payment?

runner3081 wrote: Sat Sep 11, 2021 6:49 pm Make sure your job is very secure. If you lose it, you will need to pay the loan off.
That has not been true for several years.
by TropikThunder
Sat Sep 11, 2021 12:58 pm
Forum: Personal Investments
Topic: Buying Vanguard ETF vs. MF (Margin enabled)
Replies: 9
Views: 1013

Re: Buying Vanguard ETF vs. MF (Margin enabled)

Hi In brokerage account ETF-buying web interface page, there is no provision to use a linked bank account to make the purchase (like it is done for buying MFs). Looks like I need to first transfer money and then make the ETF purchase. The reason there is no linked bank account option for buying ETF’s at any brokerage is because you are buying those ETF shares on the open market from another investor who wants to sell. You’re not buying them directly from Vanguard. If you buy mutual fund shares using the linked account, Vanguard floats you the money so that your purchase goes through the day of the transaction while your bank account is not debited until 2-3 days later. In essence, Vanguard is giving you a cost-free loan. If the bank withdr...
by TropikThunder
Fri Sep 10, 2021 4:26 pm
Forum: Personal Finance (Not Investing)
Topic: HSA Change Mid-Year and Contribution Limits
Replies: 3
Views: 452

Re: HSA Change Mid-Year and Contribution Limits

I started the year with my spouse on my HD healthcare plan, with HSA contributions targeted toward the joint maximum, $7200. My spouse changed jobs in the second quarter 2021, and signed up for an individual HD plan there. I changed my plan to individual for myself only. My employer automatically reduced HSA contributions, although I will still be over $3,600 for the year. With separate HD plans and employer-based HSAs now, are we each limited to a $3600 individual maximum, or do we have flexibility as long as our combined contributions do not exceed $7200? In other words, is we okay if my total self/employer contributions are $5200 and spouse's are $2000? The family contribution limit can be broken out however you wish ($3,600/$3,600, $7,...
by TropikThunder
Fri Sep 10, 2021 1:52 am
Forum: Investing - Theory, News & General
Topic: Chinese real estate about to go *pop*?
Replies: 56
Views: 8574

Re: Chinese real estate about to go *pop*?

Somethingwitty92912 wrote: Thu Sep 09, 2021 8:43 pm There is no Chinese market. It’s all owned by the government.
So there is zero individual business ownership in China? Chinese citizens holding shares of Chinese companies is all fake?
by TropikThunder
Fri Sep 10, 2021 12:08 am
Forum: Personal Finance (Not Investing)
Topic: HSA Change Mid-Year and Contribution Limits
Replies: 3
Views: 452

Re: HSA Change Mid-Year and Contribution Limits

I started the year with my spouse on my HD healthcare plan, with HSA contributions targeted toward the joint maximum, $7200. My spouse changed jobs in the second quarter 2021, and signed up for an individual HD plan there. I changed my plan to individual for myself only. My employer automatically reduced HSA contributions, although I will still be over $3,600 for the year. With separate HD plans and employer-based HSAs now, are we each limited to a $3600 individual maximum, or do we have flexibility as long as our combined contributions do not exceed $7200? In other words, is we okay if my total self/employer contributions are $5200 and spouse's are $2000? The family contribution limit can be broken out however you wish ($3,600/$3,600, $7,...
by TropikThunder
Thu Sep 09, 2021 12:36 am
Forum: Personal Finance (Not Investing)
Topic: Would this be a extremely bad purchase? (Sport Car)
Replies: 212
Views: 15564

Re: Would this be a extremely bad purchase? (Sport Car)

TxAg wrote: Sat Sep 04, 2021 1:45 pm Duuuuude!

There's a guy down the street that lives with his parents. He bought a Tesla with personalized plates. He has had two sets of plates... One said "Sup Girl" and the other said "No Hanz"

Maybe I'm a just a curmudgeon at 39, but it drives me crazy.
zeigler2010 wrote: Wed Sep 08, 2021 11:27 pm There's a guy down the street that lives with his parents. He bought a Tesla with personalized plates. He has had two sets of plates... One said "Sup Girl" and the other said "No Hanz"


- He sounds like a tool
Do you two know the same guy?
by TropikThunder
Thu Sep 09, 2021 12:25 am
Forum: Personal Finance (Not Investing)
Topic: Providing transportation for nanny?
Replies: 57
Views: 4757

Re: Providing transportation for nanny?

mgensler wrote: Wed Sep 08, 2021 8:28 pm 1.5 Miles on an ebike isn't that much. Maybe a 10 minute ride. I would look into a folding ebike. Brompton is the top of the line but there are others. Folding bikes can be carried on trains. You could sell it as a perk of the job and you eliminate having to haul the nanny around and reduce your liability.
OP didn't mention how old the nanny is. 1.5 miles uphill on an ebike at 20 years old? No problem. At 50 or 60? Uh .....
by TropikThunder
Thu Sep 09, 2021 12:23 am
Forum: Personal Finance (Not Investing)
Topic: Providing transportation for nanny?
Replies: 57
Views: 4757

Re: Providing transportation for nanny?

fyre4ce wrote: Wed Sep 08, 2021 8:04 pm My thought was to let her take the car home and bypass public transit completely. Although I'm thinking that Uber is much simpler and lower risk.
Depending on how far she lives, commuting by car might take longer than train + walking.
by TropikThunder
Wed Sep 08, 2021 5:38 pm
Forum: Personal Finance (Not Investing)
Topic: Changed job midyear - 401K overcontribution taxation to get employer match
Replies: 19
Views: 1700

Re: Changed job midyear - 401K overcontribution taxation to get employer match

Was it this link? https://www.irs.gov/retirement-plans/consequences-to-a-participant-who-makes-excess-deferrals-to-a-401k-plan Yes, that link plus the two other BH threads I linked above are where I'm getting my information. Spirit Rider's responses in other threads are more direct than what I have found online, but I don't think I'm mischaracterizing SR's statements (and in any case I quoted them above). Note that it's not a plan failure (and therefore not an obligation of the plan to fix it) unless the participant exceeded the statutory limit in that plan . If one contributed say $10,000 to Employer A and then $11,000 to Employer B, then the participant has exceeded the deferral limit across the two plans. But neither Employer A nor Empl...
by TropikThunder
Wed Sep 08, 2021 4:56 pm
Forum: Personal Finance (Not Investing)
Topic: Changed job midyear - 401K overcontribution taxation to get employer match
Replies: 19
Views: 1700

Re: Changed job midyear - 401K overcontribution taxation to get employer match

If you over-contribute, the IRS says you should notify your employer so they can fix it. It is also their responsibility to take steps to prevent employee over-contribution. You get to choose which plan to take the excess out of. In your case, it seems it would be the first employer. Deliberate over-contribution (without being fixed) can put the employer plan at risk of being disqualified. I would not want to be the employee caused my co-worker's retirement plan to be disqualified. :P You know what the limits are. The IRS says you need to notify your employer if you want to fix it. The regs don't say you have to fix it. And an employer has no liability unless they allow an employee to exceed the statutory limit in that employer's plan . Em...
by TropikThunder
Wed Sep 08, 2021 11:15 am
Forum: Personal Finance (Not Investing)
Topic: Changed job midyear - 401K overcontribution taxation to get employer match
Replies: 19
Views: 1700

Re: Changed job midyear - 401K overcontribution taxation to get employer match

Thanks, Guys - really appreciate your help. I went through the links mentioned here. This is what I have gathered - Please correct me if I'm wrong. Option A: Let the tax software handle the excess (as misc. taxable income) and simply pay tax on that. No need to inform anybody (no 1099-R etc). The money gets lumped with other pre-tax money/match in 401K plan. Whenever I plan to retire (not when I move my 401K to another rollover IRA upon job change) and take distributions, I'll pay tax again as it has been sitting with pre-tax money. So that is the double taxation. Sure - now I actually don't feel guilty at all as I'm paying taxes twice. Option B: Inform employer by Apr 15 of the following year to have them remove the excess (and lose the m...
by TropikThunder
Tue Sep 07, 2021 7:38 pm
Forum: Personal Finance (Not Investing)
Topic: Changed job midyear - 401K overcontribution taxation to get employer match
Replies: 19
Views: 1700

Re: Changed job midyear - 401K overcontribution taxation to get employer match

No. I do not believe my opinion is 'silly'. And yes, it can create more work for the finance dept. for example. I have direct experience of this. But thanks for your opinion. There is no additional work for the employer. They probably won't even return the contributions since OP will not have exceeded the statutory limit to employer 2's plan, and they aren't required to fix OP's error in this case. From a prior thread on the same topic (emphasis added): The requirements on a Defined Contribution (DC) employer are: If the excess deferral came from their plan. They are ONLY responsible for removing the excess deferrals and earnings. If the employee made excess deferrals from two or more plans . They may but are not required to to remove the ...
by TropikThunder
Tue Sep 07, 2021 7:25 pm
Forum: Personal Finance (Not Investing)
Topic: Changed job midyear - 401K overcontribution taxation to get employer match
Replies: 19
Views: 1700

Re: Changed job midyear - 401K overcontribution taxation to get employer match

Hi, The amount I need to contribute to get full match from new employer will put me over that annual (pre-tax+roth) limit (they don't match AT contribution) or I will lose around 3K in employer match. I read about this 'double' taxation policy which I don't quite get. Can I just use turbotax (without notifying my employer who will probably force me to withdraw the excess and forfeit the associated match) to self-correct this over-contribution, pay tax (once) and be done with that? Thanks! You have no obligation to tell employer 2 that you’ll end up exceeding the deferral limit since it won’t have occurred under their program. Employers are only impacted if the excess deferrals were all done under their plan (meaning you exceeded the $19,50...
by TropikThunder
Tue Sep 07, 2021 7:13 pm
Forum: Personal Finance (Not Investing)
Topic: Changed job midyear - 401K overcontribution taxation to get employer match
Replies: 19
Views: 1700

Re: Changed job midyear - 401K overcontribution taxation to get employer match

hotscot wrote: Tue Sep 07, 2021 6:31 pm Honestly, sounds messy, and doing something you know is wrong could have implications with your employer if they think you're trying to game the system, (they might not be appreciative as you're causing more work for them).
Personally I wouldn't bother.
That’s just silly. From the employer’s perspective, OP won’t be exceeding the deferral limit at employer 2, and they’ll have no additional work to do. OP has no obligation to tell either employer about deferrals done at the other, and neither employer has any obligation to correct anything.
by TropikThunder
Mon Sep 06, 2021 7:14 pm
Forum: Personal Finance (Not Investing)
Topic: Lost HDHP coverage briefly. How much do I need to withdraw from HSA?
Replies: 8
Views: 891

Re: Lost HDHP coverage briefly. How much do I need to withdraw from HSA?

I made a mistake HDHP autopay and lost coverage from early July (after the 1st) and regained coverage in a HDHP on September 1st. I maxed out my HSA deposit at the beginning of the year. How much do I need to have remove from my HSA account to remain compliant? Health insurance providers don’t always cancel your coverage until you have exhausted the grace period (3 months for ACA marketplace coverage) without paying the premium. Since your OP indicates you are paying for your insurance on your own (rather than employer-based), did you get your policy on the national ACA marketplace, a state marketplace, or elsewhere? If on the national ACA marketplace, and you qualify for premium tax credits, they can't cancel your coverage until you've go...
by TropikThunder
Sun Sep 05, 2021 4:42 am
Forum: Personal Finance (Not Investing)
Topic: Steps to reduce damage of down payment below 20%
Replies: 33
Views: 3389

Re: Steps to reduce damage of down payment below 20%

Billius wrote: Sun Sep 05, 2021 1:06 am Look into Alliant Credit Union's first-time homebuyer program. They'll waive PMI with a <20% downpayment if you qualify for a loan. You'll want to compare fees, closing costs, etc. of course, but it could be a good deal for you.
I just checked their rate quote for a $500k home, $400k mortgage in Phoenix and almost had a heart attack. $8,000 in fees for 2.875% (2.938% APR) including $3,128 in origination fee and points?! That same loan would have a grand total of ONE DOLLAR in closing costs at LenderFi after a $4,160 lender credit. Again, that's a total closing costs of $7,979 at Alliant vs $1 at LenderFi.

You'd be better off paying the PMI then going with Alliant. :|
by TropikThunder
Sat Sep 04, 2021 11:22 pm
Forum: Personal Finance (Not Investing)
Topic: Pay off car loan before filling out FAFSA paperwork?
Replies: 19
Views: 1733

Re: Pay off car loan before filling out FAFSA paperwork?

Don't plan on receiving much (or any) Pell grant funds. "If your family makes $60,000 a year or more, you will probably not qualify for Pell Grant funding." Income Limits for Pell Grants in 2020 (Understand Your Eligibility) Thanks! I wonder about grants from the schools though too. Most of the net cost calculators I've used for schools my daughter is looking at offer grants and scholarships too when I plug in the numbers (plus grades though, so I am wondering if it's merit-based aid since my asset reduction doesn't seem to change much with those calculators except at a few schools). Use caution though, that's a poorly written headline. First off, Pell grant eligibility is based on AGI, not gross income, so "if your family m...