Search found 2205 matches

by Chip
Fri Aug 31, 2018 2:46 pm
Forum: Investing - Theory, News & General
Topic: Portfolio Construction: Total World Stock + TIPS or Treasuries
Replies: 40
Views: 3344

Re: Portfolio Construction: Total World Stock + TIPS or Treasuries

I prefer B. One of the main reasons is that TIPS haven't had the liquidity of nominal Treasuries in financial panics. My experience in 2008/9 was that stocks were crashing but so were TIPS. I needed nominal Treasuries (which I didn't have) to buy both for rebalancing purposes. Before that event I wa...
by Chip
Fri Aug 31, 2018 2:10 pm
Forum: Personal Finance (Not Investing)
Topic: Responding to IRS CP2000 notice for backdoor Roth - new 8606 or not?
Replies: 31
Views: 1994

Re: Responding to IRS CP2000 notice for backdoor Roth - new 8606 or not?

I had a CPA do my tax return. He completed the 8606 seemingly the same way turbotax often does, with lines 6-12 blank, part II beyond line 15 not completed, and an asterisk included on lines 13 and 15 and "*From worksheet in Publication 590-B" added at the bottom of the form. As an aside, form 8606...
by Chip
Fri Aug 31, 2018 1:52 pm
Forum: Investing - Help with Personal Investments
Topic: What to do with individual stocks?
Replies: 8
Views: 1129

Re: What to do with individual stocks?

I will try to dig up as much info as possible and get back. The biggest issue that I foresee is that we don't have much documentation of cost basis. The stocks are held at Ameriprise and the website doesn't show a cost basis for probably 90% of the holdings. In terms of the 401K I see what you are ...
by Chip
Fri Aug 31, 2018 10:10 am
Forum: Investing - Help with Personal Investments
Topic: What to do with individual stocks?
Replies: 8
Views: 1129

Re: What to do with individual stocks?

Hi, and welcome! It looks like you are off to a great start. Consider switching your contributions from the Roth 401k to traditional 401k. If you do that, and max out the contribution (18.5k less Roth 401k contributions already made), you will probably drop yourself well down into the 12% tax bracke...
by Chip
Thu Aug 30, 2018 1:11 pm
Forum: Investing - Theory, News & General
Topic: Expense ratios and fees - Fidelity and flip flopping advice
Replies: 61
Views: 4376

Re: Expense ratios and fees - Fidelity and flip flopping advice

So how does it all work out in comparison to say an effective boost of the ER? I will owe the cap gains+state+AMT?+NIT? tax on the Fido 0.6%, but if I'm re-investing earnings the cost basis of the FTSVX will grow and that of VTSAX doesn't. I can see that happening in the statements. If I ever sell ...
by Chip
Thu Aug 30, 2018 8:34 am
Forum: Investing - Theory, News & General
Topic: 2017 Relative Tax Efficiency
Replies: 98
Views: 16432

Re: 2017 Relative Tax Efficiency

QDI and Distributions information is found on individual fund providers pages. This varies from fund provider to fund provider, of course. I looked at the spreadsheet this morning and noticed that the numbers for FSTVX are still marked as estimated. Here are the numbers from my 1099-DIV: .00369/sha...
by Chip
Thu Aug 30, 2018 6:26 am
Forum: Investing - Theory, News & General
Topic: Expense ratios and fees - Fidelity and flip flopping advice
Replies: 61
Views: 4376

Re: Expense ratios and fees - Fidelity and flip flopping advice

What are the reasons they aren't ideal for taxable? I have seen some speculation in other posts that they "may" have more tax drag, vanguard has a magical patent that might give them less tax drag than these funds, etc - but nothing yet that has proven this. Since they are starting with zero assets...
by Chip
Mon Aug 27, 2018 6:02 am
Forum: Investing - Help with Personal Investments
Topic: Portfolio (and General) Advice Requested - New to the Game
Replies: 6
Views: 820

Re: Portfolio (and General) Advice Requested - New to the Game

Assuming I put my entire bond allocation in the 401k, that would leave me with $12,600 remaining in the 401k. VINIX still seems like the best fund in my 401k in which to put these funds. Doing so would max my 401k allocation, and leave me with $3,625 to complete my U.S. stock allocation (55%). How ...
by Chip
Sun Aug 26, 2018 1:35 pm
Forum: Investing - Help with Personal Investments
Topic: Newly retired - need to make a big change
Replies: 51
Views: 10143

Re: Newly retired - need to make a big change

I used the annualized distribution yield as it reflects actual cash income to the investor, as opposed to "hypothetical" income in SEC yield. SEC yield is far from hypothetical and is a standardized way of comparing bond funds. If you don't believe that, imagine a 10 year premium bond which pays 5%...
by Chip
Sun Aug 26, 2018 7:50 am
Forum: Investing - Help with Personal Investments
Topic: Portfolio (and General) Advice Requested - New to the Game
Replies: 6
Views: 820

Re: Portfolio (and General) Advice Requested - New to the Game

Welcome to the forum! My spouse's loan balance is $146k.[...] This leads to a fundamental question: does it make sense to max out retirement accounts (described below) while making payments on this loan? Yes. If I read your post correctly, you have 79k/year available. I would throw all of this at yo...
by Chip
Sat Aug 25, 2018 12:22 pm
Forum: Personal Finance (Not Investing)
Topic: Is this a good resource for SS or is there something better
Replies: 12
Views: 1254

Re: Is this a good resource for SS or is there something better

Luckygirl wrote:
Sat Aug 25, 2018 11:40 am
Is Pipers book up to date with new spousal claiming rules. Looks like last version is 2017
Yes.
by Chip
Sat Aug 25, 2018 11:02 am
Forum: Personal Finance (Not Investing)
Topic: Question for Social Security experts
Replies: 13
Views: 1734

Re: Question for Social Security experts

^^ File and suspend is no longer available for anyone.
by Chip
Sat Aug 25, 2018 9:32 am
Forum: Personal Finance (Not Investing)
Topic: Question for Social Security experts
Replies: 13
Views: 1734

Re: Question for Social Security experts

Not an expert, but you can't do what you proposed. The restricted application would be for YOU to claim a spousal benefit based on your wife's work record, then allowing your delayed retirement credits to accumulate. For that to happen she would have to file for her own benefit, to which you have sa...
by Chip
Sat Aug 25, 2018 4:34 am
Forum: Investing - Help with Personal Investments
Topic: Newly retired - need to make a big change
Replies: 51
Views: 10143

Re: Newly retired - need to make a big change

Unfortunately, none of the intermediate to long term bond funds have done well in 2018, during this period of rising interest rates. Additionally, with the recent (and continuing) increases to short-term rates by the Federal Reserve, the spread between short-term rates (like VMMXX) and the bond fun...
by Chip
Sat Aug 25, 2018 4:28 am
Forum: Investing - Help with Personal Investments
Topic: Newly retired - need to make a big change
Replies: 51
Views: 10143

Re: Newly retired - need to make a big change

I do notice the difference in the performance of the US Total Stock Market Index (VTSAX) and the Total International Stock Index (VTIAX) and understand why. I have already planned to cut the percentage of VTIAX because of the volatility. Are you suggesting that it would be a good move to go with a ...
by Chip
Sat Aug 25, 2018 3:18 am
Forum: Investing - Help with Personal Investments
Topic: Strike One, Strike 2, and Now What? Please Help!
Replies: 67
Views: 6786

Re: Strike One, Strike 2, and Now What? Please Help!

At best it's a third-hand account featuring someone who was pretty uncertain to begin with. For all I know, when he went into the office he asked someone to look over the choices and suggest something better. I only care about first-hand accounts. Specifically someone who moved assets over and was ...
by Chip
Fri Aug 24, 2018 4:01 pm
Forum: Personal Consumer Issues
Topic: Mileage efficiency dropping after new tires- Subi
Replies: 7
Views: 545

Re: Mileage efficiency dropping after new tires- Subi

Just the difference between a 3/32" tread and the 10/32" tread of a new tire is worth 1% in indicated mileage, even if actual mileage didn't change. This is due to the increased circumference of the new tire. Also, it's my understanding that tires with a lot of tread have more flexing and squirming ...
by Chip
Fri Aug 24, 2018 1:35 pm
Forum: Investing - Help with Personal Investments
Topic: Strike One, Strike 2, and Now What? Please Help!
Replies: 67
Views: 6786

Re: Strike One, Strike 2, and Now What? Please Help!

That's not the kind of thing we're talking about. We're talking about people who move assets over to the brokerage and have someone there reach and try to convince them to change to some other investment. I most definitely would not use any adviser at these places. If your friend did that, then so ...
by Chip
Fri Aug 24, 2018 7:09 am
Forum: Investing - Help with Personal Investments
Topic: Strike One, Strike 2, and Now What? Please Help!
Replies: 67
Views: 6786

Re: Strike One, Strike 2, and Now What? Please Help!

I have NOT seen reports that many have been approached. Generally the contact will ask if you have needs. If you say no, then that it usually the end. This idea promulgated that these custodians spend a lot of effort to try to steer people into investments isn't what most people who use them report...
by Chip
Thu Aug 23, 2018 11:04 am
Forum: Investing - Theory, News & General
Topic: What to do at 62?
Replies: 62
Views: 8424

Re: What to do at 62?

Running to catch a flight in a few minutes but let me provide a quick response. Yes, this is a simplified model as I stated and I did not paste in my updated spreadsheets due to the difficulties in doing so. I don't think you read all of my posts fully, which have given all the assumptions. Actuall...
by Chip
Thu Aug 23, 2018 6:07 am
Forum: Investing - Theory, News & General
Topic: What to do at 62?
Replies: 62
Views: 8424

Re: What to do at 62?

So, in conclusion, I cannot see the scenario where pulling money forward to do early Roth conversions actually makes sense, from both the loss of growth on portfolio balances due to paying tax earlier and the higher taxes paid in both a nominal and present value sense due to paying tax earlier. You...
by Chip
Wed Aug 22, 2018 3:01 pm
Forum: Personal Finance (Not Investing)
Topic: Umbrella insurance - again
Replies: 34
Views: 2785

Re: Umbrella insurance - again

I'm not sure that much you get here will be useful, as your personal liability exposure matters a great deal, as well as the liability "climate" in your state and locality. I suggest getting multiple quotes to get a better read on things. Or, if you're willing, post more information about your expos...
by Chip
Wed Aug 22, 2018 1:56 pm
Forum: Investing - Help with Personal Investments
Topic: Roth and taxable investment advice needed.
Replies: 1
Views: 279

Re: Roth and taxable investment advice needed.

Hi, and welcome! You should be able to move the Fidelity Destiny Roth account to another custodian of your choosing. Then use the backdoor method to move a non-deductible tIRA contribution into it when not eligible for a regular Roth contribution. You don't need another Roth account. Though obviousl...
by Chip
Sat Aug 18, 2018 3:24 pm
Forum: Investing - Help with Personal Investments
Topic: tIRA bond fund(s)
Replies: 13
Views: 819

Re: tIRA bond fund(s)

I agree with BL. I think most of us here adhere to a relatively fixed stock/bond ratio. So it's okay to have bonds in the Roth as well as in the tIRA. I have been Roth converting for years. Our tIRAs are all bonds but I have to have some bonds in the Roth as well in order to get to my desired stock/...
by Chip
Sat Aug 18, 2018 1:25 pm
Forum: Personal Consumer Issues
Topic: Soap for hand washing dishes
Replies: 40
Views: 2266

Re: Soap for hand washing dishes

Although I keep some Dawn around the house for random cleaning jobs (it really is a wonder substance), I prefer Seventh Generation natural dish liquid for hand-washing dishes. It doesn't dry my hands out as much as Dawn and other brands. I'm a Dawn fan as well. You might try one of the "hand renewa...
by Chip
Sat Aug 18, 2018 10:29 am
Forum: Investing - Help with Personal Investments
Topic: tIRA bond fund(s)
Replies: 13
Views: 819

Re: tIRA bond fund(s)

I will be making yearly withdrawals starting in 2019 for Roth conversions, not for living expenses. So am I correct in putting at least that portion allotted to the 2019 conversion in Prime Money Market and the rest in Total Bond index fund? Maybe I don't understand your situation fully, but you ca...
by Chip
Sat Aug 11, 2018 12:21 pm
Forum: Investing - Help with Personal Investments
Topic: Help with retirement AA and fund recommendations- newbie
Replies: 9
Views: 577

Re: Help with retirement AA and fund recommendations- newbie

Okay another question. I just ran the scenario if I had done this on Jan 1st, 2017 thru dec 31, 2017 and then ytd for 2018, if my calculations are correct my ej funds would have out performed your suggestion by 1%( not huge) although I hate paying the high fees and lord knows what else their gettin...
by Chip
Sat Aug 11, 2018 5:14 am
Forum: Investing - Help with Personal Investments
Topic: Help with retirement asset allocation for a newbie!
Replies: 3
Views: 467

Re: Help with retirement asset allocation for a newbie!

Welcome! I agree with the other posters that you're doing well, but some tuning is in order. Your 401k is your largest account. All of your bonds should go there unless you don't have a good low cost option. What bond funds do you have available and what are their expense ratios? What are the expens...
by Chip
Sat Aug 11, 2018 4:38 am
Forum: Investing - Help with Personal Investments
Topic: Preparing for a bear market
Replies: 43
Views: 5311

Re: Preparing for a bear market

You shouldn't make any changes due to "preparing for a bear market". No one knows when it will come. But reasonable allocation change reasons include: 1. I'm uncomfortable with the risk in my portfolio. 2. I don't need to take as much risk to meet my goals. You have enough money and you're worried a...
by Chip
Wed Aug 08, 2018 5:12 am
Forum: Personal Finance (Not Investing)
Topic: Best way to lose $200 in taxable income?
Replies: 96
Views: 7248

Re: Best way to lose $200 in taxable income?

Besides, I doubt if he has $30,000 sitting in a checking account. Which is about what it would take for a CD to generate an early-withdrawal penalty of around $200. Assuming the CD rate is in the neighborhood of 2.5%-2.7% and the penalty is three months interest. You must have missed my earlier exa...
by Chip
Tue Aug 07, 2018 3:09 pm
Forum: Personal Finance (Not Investing)
Topic: Best way to lose $200 in taxable income?
Replies: 96
Views: 7248

Re: Best way to lose $200 in taxable income?

He can't. He doesn't have any available funds to buy a CD. I strongly suspect that he's not counting what's in his checking account. He mentioned he'd completed his IRA withdrawals for the year. So that money is sitting somewhere, ready to pay bills. Unless somehow he's surviving on the kindness of...
by Chip
Tue Aug 07, 2018 11:04 am
Forum: Personal Finance (Not Investing)
Topic: Is It Really That Difficult to Apply for Social Security Online?
Replies: 13
Views: 1057

Re: Is It Really That Difficult to Apply for Social Security Online?

Do you plan on making a restricted filing for spousal benefits only, based on your wife's earnings record, at the same time as your wife applies for her benefit? Assuming you were born before 1/2/54 and are at least as old as your FRA. No, because I am still able to contribute to my firm's HSA, I a...
by Chip
Tue Aug 07, 2018 7:53 am
Forum: Personal Finance (Not Investing)
Topic: Best way to lose $200 in taxable income?
Replies: 96
Views: 7248

Re: Best way to lose $200 in taxable income?

The paired options strategy has to work. Agreed. But it's quite a bit more complex for the novice to execute and may require getting approved for option trading (not that difficult, but one more step). The early withdrawal penalty has the disadvantage of requiring a fairly big CD and it actually lo...
by Chip
Tue Aug 07, 2018 5:27 am
Forum: Personal Finance (Not Investing)
Topic: Best way to lose $200 in taxable income?
Replies: 96
Views: 7248

Re: Best way to lose $200 in taxable income?

I'm amazed this thread continues to offer suggestions that MIGHT lose money when early on in the thread the slam dunk answer was given:

Buy a CD with a fixed early withdrawal penalty, then withdraw it early. It's a known penalty and a guaranteed reduction to AGI, which is what the OP needs.
by Chip
Tue Aug 07, 2018 5:13 am
Forum: Investing - Help with Personal Investments
Topic: Nervous about not using a personal wealth manager. How do I do this myself?
Replies: 135
Views: 6830

Re: Planning to invest in these funds -- any issues?

I think the OP us making this much harder than it needs to be, but for some reason seems very reluctant to just start fresh with a simple portfolio that he understands. Rather than tell us all the options in his accounts, everything is related to whatever advice this manager gave him, which makes i...
by Chip
Tue Aug 07, 2018 5:00 am
Forum: Personal Finance (Not Investing)
Topic: Medical expenses while on Medicare
Replies: 48
Views: 2708

Re: Medical expenses while on Medicare

I think everyone understands this cannot be a precise number because it depends on your health situation. Maybe. :) I'm rather startled by the innumeracy I see around me every single day. The concept of significant figures seems to be lost on many. Ditto for GIGO. It's not just imprecise because of...
by Chip
Mon Aug 06, 2018 10:50 am
Forum: Personal Finance (Not Investing)
Topic: Is It Really That Difficult to Apply for Social Security Online?
Replies: 13
Views: 1057

Re: Is It Really That Difficult to Apply for Social Security Online?

I recently used one of the online "for pay" services that advise on social security filing decisions. I wanted to make sure my decision to file at 70, and my wife at 66, was correct. Their analysis confirmed this. Do you plan on making a restricted filing for spousal benefits only, based on your wi...
by Chip
Sun Aug 05, 2018 2:19 pm
Forum: Investing - Theory, News & General
Topic: Will dividend spending only portfolio last forever ?
Replies: 90
Views: 6160

Re: Will dividend spending only portfolio last forever ?

If you don't think WB knows about yield on cost your kidding yourself. He may know about it, but that doesn't mean he uses it for anything. I challenge you to produce any statement by WB where he uses yield on cost to make investment decisions . The real question is: since your trying to discredit ...
by Chip
Sun Aug 05, 2018 10:33 am
Forum: Investing - Theory, News & General
Topic: Will dividend spending only portfolio last forever ?
Replies: 90
Views: 6160

Re: Will dividend spending only portfolio last forever ?

Here is a article that WB is a closet dividend investor. (how dividend investors look at things). Ummm, no. The article is how the AUTHOR of the article looks at things. WB attempts to buy good businesses with wide competitive moats and quality management, with the expectation that they will grow, ...
by Chip
Sun Aug 05, 2018 8:58 am
Forum: Investing - Theory, News & General
Topic: Will dividend spending only portfolio last forever ?
Replies: 90
Views: 6160

Re: Will dividend spending only portfolio last forever ?

snarlyjack wrote:
Sun Aug 05, 2018 8:45 am
So...you don't believe in yield on cost.
I get it, I' am pretty sure Warren Buffett does...
Show me any quote from WB where he indicates that yield on cost is used in his investment decisions.

Why won't you respond to the thought experiments proposed above?
by Chip
Sun Aug 05, 2018 8:41 am
Forum: Personal Finance (Not Investing)
Topic: Earn 1.5% on your checking account without the usual hoops (at Fidelity)
Replies: 64
Views: 7496

Re: Earn 1.5% on your checking account without the usual hoops (at Fidelity)

student wrote:
Sun Aug 05, 2018 8:39 am
However, note the following.

1) Debit card from a Cash Management Account will reimburse fees from international ATM but not for debit card from brokerage.
This is incorrect. I have been reimbursed for all ATM fees. Though I am Private Client and that may make a difference.
by Chip
Sun Aug 05, 2018 8:36 am
Forum: Investing - Theory, News & General
Topic: Will dividend spending only portfolio last forever ?
Replies: 90
Views: 6160

Re: Will dividend spending only portfolio last forever ?

Here is a short video on "Yield On Cost" & why you want to buy into a down market. This is what makes it so powerful... https://www.youtube.com/watch?v=cw979PB0A3Q Yield on cost has NOTHING to do with the wisdom of rebalancing in a down market. Again, it's a useless and/or harmful metric. Rather th...
by Chip
Sun Aug 05, 2018 8:22 am
Forum: Personal Finance (Not Investing)
Topic: Earn 1.5% on your checking account without the usual hoops (at Fidelity)
Replies: 64
Views: 7496

Re: Earn 1.5% on your checking account without the usual hoops (at Fidelity)

CDub wrote:
Sun Aug 05, 2018 8:16 am
Can you get a debit card on that account? I actually hadn’t even considered that approach.
Yes. I have one.
by Chip
Sun Aug 05, 2018 8:12 am
Forum: Personal Finance (Not Investing)
Topic: Earn 1.5% on your checking account without the usual hoops (at Fidelity)
Replies: 64
Views: 7496

Re: Earn 1.5% on your checking account without the usual hoops (at Fidelity)

I guess I don't even have a "Cash Management Account". SPAXX is my "core account" position at Fidelity. I have checks that Fidelity provides that draw directly from that account & fund. Plus Billpay debits, direct pulls, etc.
by Chip
Sun Aug 05, 2018 5:18 am
Forum: Personal Finance (Not Investing)
Topic: IRA conversion or take capital gains?
Replies: 8
Views: 572

Re: IRA conversion or take capital gains?

I agree with FiveK's analysis. Do conversions because you don't need the money that's in the taxable account and you are happy with those positions. The answer would be different if your taxable account held high cost, actively managed funds that you wanted to exchange for something else. Or if you ...
by Chip
Sat Aug 04, 2018 4:06 pm
Forum: Personal Finance (Not Investing)
Topic: Soc Sec benefit estimates: Anyone get a nasty surprise when filing?
Replies: 61
Views: 7983

Re: Soc Sec benefit estimates: Anyone get a nasty surprise when filing?

My wife will turn 66 in October, and she'll start her benefit then. When I turn 70 she'll convert over her spousal benefit, which will be larger. I'm wondering exactly how she should apply - online? Go to our local SS office (a depressing place ..). And when, in advance of her October birthday shou...
by Chip
Sat Aug 04, 2018 3:51 pm
Forum: Investing - Help with Personal Investments
Topic: Avista Sale Tax Question
Replies: 4
Views: 259

Re: Avista Sale Tax Question

So my 2017 AGI was less than $150k. Is it true then that as long as I pay in 2018 100%+ of what I paid in 2017, I avoid an underpayment penalty and quarterly estimated tax payment requirement? I believe that is correct. But it's best to do it via withholding vs. sending in payments since withholdin...
by Chip
Sat Aug 04, 2018 1:31 pm
Forum: Personal Finance (Not Investing)
Topic: Medical expenses while on Medicare
Replies: 48
Views: 2708

Re: Medical expenses while on Medicare

I don't think it is unreasonable. He probably added published numbers, inflated them and didn't round. To me, the number of significant figures is not that important in this case. I dunno. I think it gives an illusion of false precision which can lead the recipient to assume it's more accurate than...