Search found 2198 matches

by Chip
Mon May 28, 2018 12:57 pm
Forum: Personal Finance (Not Investing)
Topic: Avoiding IRS hassle: Form 4868 and miscategorized EFTPS payment
Replies: 8
Views: 956

Re: Avoiding IRS hassle: Form 4868 and miscategorized EFTPS payment

Somewhat off topic but relevant. Why use EFTPS? I pay my taxes with my BofA Premium rewards credit card. 1. I won't ever do business with BofA in any way, shape or form. They refused to honor a POA that had been approved in writing by a bank they later acquired and were complete [expetive deleted]s...
by Chip
Mon May 28, 2018 12:24 pm
Forum: Personal Consumer Issues
Topic: Considering iPad to replace failing Nexus tablet
Replies: 60
Views: 4728

Re: Considering iPad to replace failing Nexus tablet

Have you considered a Surface Pro? That's where we ended up after an iPad2 and then a Samsung tablet. While they both did several things quite well there was always some sort of major flaw that kept us from doing exactly what we wanted to do on the tablets. Or required more money than we wanted to s...
by Chip
Mon May 28, 2018 11:48 am
Forum: Personal Finance (Not Investing)
Topic: Avoiding IRS hassle: Form 4868 and miscategorized EFTPS payment
Replies: 8
Views: 956

Re: Avoiding IRS hassle: Form 4868 and miscategorized EFTPS payment

Update: It appears the above strategy worked as expected. I e-filed my return on 5/19. My refund in the expected amount was direct deposited on 5/25. Five business days! So I doubt if there is going to be any sort of problem that will require contact with the IRS. My experience with Tax-Aide is that...
by Chip
Mon May 28, 2018 8:12 am
Forum: Personal Finance (Not Investing)
Topic: Lump sum versus annuity - could use your insight.
Replies: 18
Views: 2447

Re: Lump sum versus annuity - could use your insight.

Would your company allow for a split between the annuity and the lump sum? The reason I ask is that the annuity looks attractive, as other posters have pointed out, but taking the full amount will eliminate your ability to get that ACA subsidy under current law. The subsidy could easily be worth 20k...
by Chip
Tue May 22, 2018 4:13 am
Forum: Personal Finance (Not Investing)
Topic: Are high dividend stocks advantageous for the 15% tax rate?
Replies: 46
Views: 4624

Re: Are high dividend stocks advantageous for the 15% tax rate?

[...] I'm actually surprised there is some positive feedback on my idea that is not in line with the common wisdom. Thanks to everyone and any more opinions would be welcome. In my opinion , what you're seeing is a few very vocal supporters of high dividend strategies. I suspect (but cannot prove) ...
by Chip
Sun May 20, 2018 11:22 am
Forum: Personal Finance (Not Investing)
Topic: SS Benefits and Medicare Part B Premiums Question
Replies: 10
Views: 1463

Re: SS Benefits and Medicare Part B Premiums Question

So I can either: 1) Pay the complete Invoice (July-September) and wait for SS to provide me a credit for the month of September (this may take up to 4-5 months to resolve) or 2) Pay just for July and August and add a note indicating that I start my SS Benefits in August, thus the September Part B P...
by Chip
Sun May 20, 2018 11:05 am
Forum: Investing - Help with Personal Investments
Topic: Retiring soon - some questions
Replies: 27
Views: 3574

Re: Retiring soon - some questions

Thanks once again to all. I really do need to look closer at the whole Roth conversion value vs ACA subsidy. As some have suggested, I may be able to do some conversion and still get the subsidy. Very possible I may only use COBRA until the end of this year as it might turn out that the ACA subsidy...
by Chip
Sun May 20, 2018 6:38 am
Forum: Personal Finance (Not Investing)
Topic: SS Benefits and Medicare Part B Premiums Question
Replies: 10
Views: 1463

Re: SS Benefits and Medicare Part B Premiums Question

Prior thread addressing the timing issue here . The post from Alan S. indicates that the Part B that is deducted is for the current month. i.e. your September Part B premium is the one that will be deducted from your September benefit payment. There was another thread that discussed the transition f...
by Chip
Sun May 20, 2018 5:13 am
Forum: Personal Finance (Not Investing)
Topic: PSA: Schwab International ETFs: 1099-DIV revisions coming [Updated]
Replies: 19
Views: 2440

Re: PSA: Schwab International ETFs: 1099-DIV revisions coming

In summary, I find it very hard to believe that my foreign tax paid / dividends paid is coincidentally exactly the ROC/share. It seems to have absolutely nothing to do with the number of shares I own. Either I do not understand the 1/23/2108 letter, or perhaps the name and units of the quantity "$0...
by Chip
Thu May 17, 2018 2:57 pm
Forum: Personal Finance (Not Investing)
Topic: When to claim Social Security: two reasons not to wait
Replies: 68
Views: 12533

Re: When to claim Social Security: two reasons not to wait

If survivor benefits are taken before the survivor's FRA the amount is also reduced. A minor addition/clarification: FRA for survivors is based on a slightly different age table than for retirees. For example, FRA for regular benefit purposes is 66 yrs 4 months for someone born in 1956. For survivo...
by Chip
Tue May 08, 2018 4:24 am
Forum: Investing - Help with Personal Investments
Topic: Nationwide Indexed Annuity
Replies: 7
Views: 715

Re: Nationwide Indexed Annuity

My guess the salesman also failed to tell you that you are paying about a 2% per year "fee" in the lost returns because returns are based on the price of the index and you lose the dividends. Oops. They must have forgot that little detail. I think it's even worse than that. According to the illustr...
by Chip
Mon May 07, 2018 12:33 pm
Forum: Personal Finance (Not Investing)
Topic: DAF with <$5k minimum contribution?
Replies: 17
Views: 1309

Re: DAF with <$5k minimum contribution?

It's been several years, but Fidelity waived the 5k minimum when I established mine. You can ask; all they can do is say no.
by Chip
Fri May 04, 2018 8:47 am
Forum: Investing - Help with Personal Investments
Topic: Too much cash - what to do?
Replies: 16
Views: 2761

Re: Too much cash - what to do?

It may not matter to this discussion, but I don't see how your state tax rate is 10% when the maximum rate in Georgia is 6%. Are you sure your Federal marginal rate is 33%? The reason I ask is that there is no 33% bracket in 2018. The 24% bracket goes up to 157.5k of taxable income. After that there...
by Chip
Wed May 02, 2018 2:06 pm
Forum: Investing - Help with Personal Investments
Topic: Does anyone use Fidelity's FZCXX as a savings account?
Replies: 5
Views: 661

Re: Does anyone use Fidelity's FZCXX as a savings account?

I am using FZDXX. Similar/same minimums. It's not a government fund so there is more risk. Yield is 1.80% right now.
by Chip
Wed May 02, 2018 5:35 am
Forum: Investing - Help with Personal Investments
Topic: Why was my CD purchase order got cancelled?
Replies: 6
Views: 1080

Re: Why was my CD purchase order got cancelled?

This may sound like an absolutely crazy, far-out suggestion, but you could call Fidelity and ask them. :D
by Chip
Wed May 02, 2018 5:05 am
Forum: Investing - Help with Personal Investments
Topic: Advice for problem firm holding my inherited funds
Replies: 21
Views: 1599

Re: Advice for problem firm holding my inherited funds

What I have done before is to fill out a paper form with entries similar to:

Net worth: > 50,000
Income: > 20,000

It wasn't a lie, but did not provide any useful information either.
by Chip
Mon Apr 30, 2018 1:02 pm
Forum: Personal Consumer Issues
Topic: Avocado Timing
Replies: 40
Views: 3262

Re: Avocado Timing

If I buy them while still hard, do they ripen slowly (or more slowly) in the fridge? I was very tempted to say "Don't time the market". I almost resisted the temptation. :D Yes, they will keep longer in the fridge and ripen more slowly than they would on the counter. But it's a fact of life that so...
by Chip
Mon Apr 30, 2018 12:44 pm
Forum: Investing - Help with Personal Investments
Topic: New to board with Brighthouse Annuity question?
Replies: 42
Views: 3497

Re: New to board with Brighthouse Annuity question?

I am understanding you correctly that we can do better by the 2.4% you came up with, and simplifying our portfolio? Vs staying in it for another 3.5 yrs? It's important to understand that what I calculated was an expected value , not any sort of guarantee. And it was based on a set of data that I h...
by Chip
Mon Apr 30, 2018 8:23 am
Forum: Investing - Help with Personal Investments
Topic: New to board with Brighthouse Annuity question?
Replies: 42
Views: 3497

Re: New to board with Brighthouse Annuity question?

What really surprised me in the prospectus was the horrible surrender penalty sequence (still 5% at 5 years!). That encourages people to stay in it for the full 6 years which then drives the actuarial likelihood of exceeding the cap. Indeed. The way this annuity was set up is fairly interesting fro...
by Chip
Mon Apr 30, 2018 5:20 am
Forum: Investing - Help with Personal Investments
Topic: New Poster Asking for Portfolio Review
Replies: 6
Views: 896

Re: New Poster Asking for Portfolio Review

Hi, and welcome! I acually think waiting until the market crashes (not just a correction) would be a good time to self-evaluate and move to 90/10. If you are able to handle the emotions associated with the crash and still sell your nice, safe bonds and buy those crashing equities, more power to you....
by Chip
Sat Apr 28, 2018 5:16 am
Forum: Investing - Help with Personal Investments
Topic: New to board with Brighthouse Annuity question?
Replies: 42
Views: 3497

Re: New to board with Brighthouse Annuity question?

I don't know if this will help in the decision making, but I ran some stats on a file I have of end-of-week S&P 500 index values that I have going back to the end of 2003. There isn't any reason for choosing that date or weekly values other than that's what I have that is easily available. Based on ...
by Chip
Sat Apr 28, 2018 3:51 am
Forum: Investing - Help with Personal Investments
Topic: New to board with Brighthouse Annuity question?
Replies: 42
Views: 3497

Re: New to board with Brighthouse Annuity question?

Thanks again, so if we pay the 8% fee to surrender, we stand to earn 6% back just from Divs, costing us 2% in reality....... if the SP 500 doesnt Avg more than 12.5% annually we make the same on returns in either product... That's my understanding, with one big caveat. I'm not able to tell for sure...
by Chip
Fri Apr 27, 2018 12:44 pm
Forum: Investing - Theory, News & General
Topic: Larry Swedroe: Liquidity Risk Not Worth It
Replies: 35
Views: 5483

Re: Larry Swedroe: Liquidity Risk Not Worth It

But let's look a real life example of the difference in returns between Treasuries and Corporates. The Vanguard Intermediate Term Treasury Admiral (VFIUX) has a 10 year growth of $10,000 of $13,687. The Vanguard Intermediate Term Investment Grade Admiral (VFIDX) consists of 68% corporates and has a...
by Chip
Fri Apr 27, 2018 10:39 am
Forum: Investing - Help with Personal Investments
Topic: New to board with Brighthouse Annuity question?
Replies: 42
Views: 3497

Re: New to board with Brighthouse Annuity question?

I need to emphasize that I'm not any sort of expert on these products and just took a quick look at the prospectus. So with no "participation rate" as a percentage of index gains, just the caps, we would get the full 8% Index return from example given, but still lose out on 2% of Div return? Yes, I ...
by Chip
Fri Apr 27, 2018 8:14 am
Forum: Investing - Help with Personal Investments
Topic: New to board with Brighthouse Annuity question?
Replies: 42
Views: 3497

Re: New to board with Brighthouse Annuity question?

I looked over the prospectus. There are multiple options covered there that affect both the potential gains and losses associated with the contract. It appears to me that there is no "participation rate" as a percentage of index gains, just the caps, etc. as detailed below. There is also discussion ...
by Chip
Fri Apr 27, 2018 5:21 am
Forum: Personal Finance (Not Investing)
Topic: Paying credit card debt for a CA estate
Replies: 7
Views: 977

Re: Paying credit card debt for a CA estate

I am not an attorney and do not profess to have any legal knowledge. You have been warned. :D But I have administered an estate in CA using the small estate provisions you referenced. I was also a beneficiary and got along well with the other beneficiary. I was advised by an attorney that it was not...
by Chip
Thu Apr 26, 2018 1:40 pm
Forum: Investing - Theory, News & General
Topic: Impact of allocation changes on returns
Replies: 9
Views: 840

Re: Impact of allocation changes on returns

I did try to use flow but made the general assumption that the rebalance occurred in the beginning of the month. I believe that you actually need dates for the XIRR function. I am only using the monthly RoR to calculate YTD, IRR and other stats. [...] If there is a consensus that treating rebalanci...
by Chip
Thu Apr 26, 2018 9:36 am
Forum: Investing - Theory, News & General
Topic: Impact of allocation changes on returns
Replies: 9
Views: 840

Re: Impact of allocation changes on returns

Hi, and welcome! Can anyone provide a standard or best practice for incorporating the impact of allocation changes on the monthly ROR for stocks vs bonds? I don't want to recommend changes without the numbers to support my gut feeling. This may not be what you're asking, but as dbr says I just consi...
by Chip
Wed Apr 25, 2018 9:32 am
Forum: Investing - Theory, News & General
Topic: Interest rates have no impact on equity markets...
Replies: 4
Views: 812

Re: Interest rates have no impact on equity markets...

... only high yield does. I'm amazed at how many people don't know this. I've looked at data from 1945. Equities have rallied and fallen during rising rates. There is no correlation. https://fred.stlouisfed.org/series/BAMLH0A0HYM2 I don't think you "know" it, either. You may have looked at the data...
by Chip
Wed Apr 25, 2018 7:36 am
Forum: Personal Finance (Not Investing)
Topic: Roth Contrib funding issue
Replies: 2
Views: 289

Re: Roth Contrib funding issue

Yes. He needs to recharacterize the contribution (and associated earnings) to a traditional IRA contribution.
by Chip
Sun Apr 22, 2018 10:29 am
Forum: Investing - Help with Personal Investments
Topic: My taxable account is banged up. Need some help!
Replies: 20
Views: 2590

Re: My taxable account is banged up. Need some help!

Don't worry, you haven't done any damage. If you realize the loss on the bonds now and buy back similar but not identical bonds in your IRA you are in the same net position but you'll get to claim the loss on your taxes. It's a win! Just be aware of wash sale rules so you actually get to deduct the ...
by Chip
Sun Apr 22, 2018 10:23 am
Forum: Investing - Theory, News & General
Topic: Boglehead Philosophy Open To Change?
Replies: 197
Views: 10989

Re: Boglehead Philosophy Open To Change?

In my case I plan on not liquidating the portfolio & living off of dividends. So, I don't have to be concerned with the Trinity 4% rule. Once my portfolio is large enough to support myself I can live off of dividends forever without having to liquidate anything. That's the goal anyway. By constrain...
by Chip
Sun Apr 22, 2018 8:20 am
Forum: Investing - Help with Personal Investments
Topic: Which bond fund to choose: Schwab (SWAGX) or Fidelity (FBIDX/FSITX)?
Replies: 7
Views: 1035

Re: Which bond fund to choose: Schwab (SWAGX) or Fidelity (FBIDX/FSITX)?

It appears they follow the same index and both have very low expenses, though Fidelity is very slightly higher (.045% vs. .04%). I'd choose whichever one was most convenient.

I like the fact that you have 100% G fund in the TSP. I wish I had access to it.
by Chip
Sun Apr 22, 2018 8:15 am
Forum: Investing - Help with Personal Investments
Topic: MorningStar model portfolio - feedback
Replies: 5
Views: 627

Re: MorningStar model portfolio - feedback

As Svensk Anga points out, putting active funds and bond funds in a taxable account is a recipe for higher taxes. Since you have a 401k and IRA your best options for a taxable account would be total market funds, both domestic and international. Note that in the last paragraph of the article advocat...
by Chip
Sun Apr 22, 2018 8:00 am
Forum: Investing - Help with Personal Investments
Topic: What To Do With Active Funds
Replies: 7
Views: 782

Re: What To Do With Active Funds

Chip, in terms of the cap gains distribution, I thought that was only an issue if I continued to hold the funds, because if I sell them there won’t be any cap gains (from those funds) to distribute to me in the future. My thinking was I’d pay a one time cap gains tax on the $9K. But maybe I don’t u...
by Chip
Sun Apr 22, 2018 6:13 am
Forum: Investing - Help with Personal Investments
Topic: Help evaluate portfolio & retirement plan
Replies: 5
Views: 780

Re: Help evaluate portfolio & retirement plan

@Chip- I didn't know about the dividend trap, I'll need to educate myself more on this, thanks for the alert. Taking SS later to max Roth laddering makes sense. Immediate steps for us then: 1. Move bonds out of his taxable (there's some loss we can harvest) 2. Move stuff out of the blended target f...
by Chip
Sat Apr 21, 2018 3:26 pm
Forum: Investing - Help with Personal Investments
Topic: Help evaluate portfolio & retirement plan
Replies: 5
Views: 780

Re: Help evaluate portfolio & retirement plan

Hi, and welcome! I agree with alec's suggestions: Put all the bonds in the 401ks. Sell taxable bond funds that are in your taxable account (they probably will give you a (desirable) capital loss, but check first. The CA muni fund is fine if you can't fit all the bonds in the 401ks but consider not l...
by Chip
Sat Apr 21, 2018 9:24 am
Forum: Investing - Help with Personal Investments
Topic: What To Do With Active Funds
Replies: 7
Views: 782

Re: What To Do With Active Funds

While I agree the desirable outcome would be to sell them all, I would make sure you understand the full tax implications before selling everything. Not only the capital gains you would realize from selling but also the effect on your taxes each year from capital gain distributions. If nothing else ...
by Chip
Fri Apr 20, 2018 1:27 pm
Forum: Personal Finance (Not Investing)
Topic: Wanting to leave Fidelity
Replies: 97
Views: 11991

Re: Wanting to leave Fidelity

^^^Thanks. Footnote 4 on the page I linked COULD have that info, but they chose not to put it there for some reason.
by Chip
Fri Apr 20, 2018 9:04 am
Forum: Personal Finance (Not Investing)
Topic: Wanting to leave Fidelity
Replies: 97
Views: 11991

Re: Wanting to leave Fidelity

FZDXX has a 1 million dollars minimum. Am I missing something? I don't know where you saw $1M. It's 100k minimum . And I could swear that when I bought it last year the minimum was only 10k in an IRA, but I don't see that separate minimum listed now. There are other options besides the FDIC-insured...
by Chip
Fri Apr 20, 2018 7:11 am
Forum: Personal Finance (Not Investing)
Topic: Tax day come and gone.....
Replies: 29
Views: 3327

Re: Tax day come and gone.....

Please do the following as a favor to your fellow desi BH. Make a copy your tax return file. Modify it to change your RE tax bill by half in the software. Compare your tax liability. I suspect you will be surprised (shocked). I wasn't at all shocked to see that my tax bill would have increased by m...
by Chip
Fri Apr 20, 2018 5:24 am
Forum: Personal Consumer Issues
Topic: Factor in evaluating Physicians
Replies: 86
Views: 5684

Re: Factor in evaluating Physicians

My GI doc received 170k. Do I win a prize? :shock:
by Chip
Thu Apr 19, 2018 10:56 am
Forum: Investing - Help with Personal Investments
Topic: Please help with fund reallocation to include international index fund without tax implication
Replies: 2
Views: 292

Re: Please help with fund reallocation to include international index fund without tax implication

One way would be to swap about 12% of the 16% in the S&P fund in your old 401k for the developed market index. Then buy 4% of the Vanguard emerging markets fund in your Roth. You could buy some international small cap, too, but it will be such a small allocation at market weight it's probably not wo...
by Chip
Thu Apr 19, 2018 8:01 am
Forum: Personal Finance (Not Investing)
Topic: Wanting to leave Fidelity
Replies: 97
Views: 11991

Re: Wanting to leave Fidelity

Vanguard tried the transfer when the $150.01 showed as "Available to Trade". Fidelity rejected it because the funds were not yet in the account, just showing as available. Fidelity refuses to admit when they are wrong, and now says I should simply contact them next Friday to keep the account open. ...
by Chip
Thu Apr 19, 2018 5:07 am
Forum: Personal Consumer Issues
Topic: Total Cost of Car Ownership over 10 years
Replies: 40
Views: 3822

Re: Total Cost of Car Ownership over 10 years

I agree with other posters that maintenance $ are low in your estimate. I had a '98 Camry that went 243k/15 years and spent 5.7k on maintenance (including tires, oil changes, etc.). But that was almost all DIY. I had much lower insurance costs, but of course that is very situation dependent. And my ...
by Chip
Wed Apr 18, 2018 3:34 am
Forum: Personal Finance (Not Investing)
Topic: Avoiding IRS hassle: Form 4868 and miscategorized EFTPS payment
Replies: 8
Views: 956

Re: Avoiding IRS hassle: Form 4868 and miscategorized EFTPS payment

I decided to do the $1 "extension" payment via EFTPS, which allowed me to avoid filing a paper 4868.

I am thinking I will treat the ETFPS "payment with return" as an extra estimated payment when I ultimately file. If I get some kind of notice I'll deal with the IRS phone system at that point.
by Chip
Wed Apr 18, 2018 3:16 am
Forum: Investing - Help with Personal Investments
Topic: Too Many Options: IRA, i401k, 403b, 457b. What to do?
Replies: 8
Views: 858

Re: Too Many Options: IRA, i401k, 403b, 457b. What to do?

I like your plan of using tax-deferred contributions to get you into the 12% bracket, then contributing the rest of your savings to Roth vehicles.

I wouldn't change a thing.
by Chip
Tue Apr 17, 2018 4:03 pm
Forum: Personal Finance (Not Investing)
Topic: Yet another CP2000 for Roth IRA conversion thread
Replies: 43
Views: 4766

Re: Yet another CP2000 for Roth IRA conversion thread

I submitted the return by mail. I checked my copy of the mailed return and it definitely had both 8606s included. It would certainly explain the issue it if the IRS didn't enter the 8606s as part of the return. But I can't imagine why on earth that they would not. I'm sure pages of returns get lost...
by Chip
Tue Apr 17, 2018 7:49 am
Forum: Investing - Help with Personal Investments
Topic: Lazy Portfolio - Using Fidelity ETF's Vs Vanguard ETF's
Replies: 29
Views: 4156

Re: Lazy Portfolio - Using Fidelity ETF's Vs Vanguard ETF's

Generally, the FTC can only offset US taxes imposed on foreign source income (FSI). Generally, the FTC does not offset US taxes imposed on US source income. On second thought, I might not get much of a FTC. If all of my FSI is taxed at the 0% capital gains rate, then I will likely get no FTC. It's ...
by Chip
Tue Apr 17, 2018 7:22 am
Forum: Personal Finance (Not Investing)
Topic: Roth conversion timing and ACA subsidies
Replies: 11
Views: 1016

Re: Roth conversion timing and ACA subsidies

Further to curmudgeon's point: I wonder if Roth conversions prior to Medicare are a good idea at all in this situation. If you are able to keep your MAGI low enough you will get significant premium tax credits (PTC). And if you are in the range of 100-250% of FPL you are eligible for cost sharing re...