Search found 4301 matches

by Artsdoctor
Tue Apr 06, 2021 7:58 pm
Forum: Investing - Theory, News & General
Topic: S&P 500 v Total Stock - What is your favorite and why?
Replies: 104
Views: 8897

Re: S&P 500 v Total Stock - What is your favorite and why?

Philosophically, my preference would be Total Stock. I believe that diversification helps mitigate risk in concept. In practice, it's really not going to make a big difference. I own both Total Stock and Large Cap because I used Large Cap and S&P 500 as my tax-loss harvesting alternatives in the...
by Artsdoctor
Thu Apr 01, 2021 4:37 pm
Forum: Personal Investments
Topic: CA resident with HSA... which investment do I pick?
Replies: 20
Views: 1610

Re: CA resident with HSA... which investment do I pick?

^ I agree that trying to use Fidelity as your primary HSA would be beneficial. If you're forced to use Optum, then you can put the money in a money market account and transfer the balance to your Fidelity HSA every quarter. Once the money is there, you can invest it in the ETF of your choice. Some p...
by Artsdoctor
Thu Apr 01, 2021 4:29 pm
Forum: Personal Investments
Topic: Portfolio Questions - Time for Tax Exempt Bonds?
Replies: 8
Views: 1138

Re: Portfolio Questions - Time for Tax Exempt Bonds?

Sorry for the lack of clarity. I'm saying that you can (1) hold tax-exempt bond funds in your taxable account, and (2) hold taxable bond funds in your tax-advantaged accounts. The reason why I've found that to be helpful is because you'll inevitably want to buy equities during a downturn and you'll ...
by Artsdoctor
Wed Mar 31, 2021 7:43 pm
Forum: Personal Investments
Topic: Portfolio Questions - Time for Tax Exempt Bonds?
Replies: 8
Views: 1138

Re: Portfolio Questions - Time for Tax Exempt Bonds?

You have a nicely planned portfolio. A few questions although you've outlined things pretty clearly. Is there a reasonable likelihood that you'll maintain a high income for the next couple of decades? If so, I would consider: Holding a muni fund in your taxable account (Vanguard's CA intermediate-te...
by Artsdoctor
Tue Mar 30, 2021 6:37 pm
Forum: Personal Investments
Topic: CA resident with HSA... which investment do I pick?
Replies: 20
Views: 1610

Re: CA resident with HSA... which investment do I pick?

I'll speak as someone who lives in CA and has had HSAs for over 15 years. Your time horizon is very long. You mentioned 30 years so provided you have money elsewhere for your expenses, I would simply invest in the Vanguard Total Stock fund. It's incredibly tax-efficient and the ER is 0.03. It won't ...
by Artsdoctor
Tue Mar 30, 2021 5:52 pm
Forum: Personal Investments
Topic: Need advice on a 1-2 year investment plan
Replies: 10
Views: 1010

Re: Need advice on a 1-2 year investment plan

I'm going to go out on a limb here with a couple of suggestions. Try not to take anything out of the Roth. Once you become an attending, you won't be able to contribute to a Roth, probably for the rest of your career because you'll be making too much money. Also, your marginal tax rate will be high ...
by Artsdoctor
Tue Mar 30, 2021 5:33 pm
Forum: Investing - Theory, News & General
Topic: Survivor benefits and Spouse claiming at 62 and 5mos
Replies: 6
Views: 490

Re: Survivor benefits and Spouse claiming at 62 and 5mos

Edify wrote: Tue Mar 30, 2021 4:48 pm
But what if I die some day?
:shock:
by Artsdoctor
Tue Mar 30, 2021 10:35 am
Forum: Investing - Theory, News & General
Topic: LMP: Social Security, Inflation, and TIPS vs Nominals
Replies: 56
Views: 3572

Re: LMP: Social Security, Inflation, and TIPS vs Nominals

Artsdoctor, So if I was planning on doing a non rolling TIPS ladder for an LMP, your recommendation would be...ignore the torpedos, full speed ahead? Artsdoctor can give his answer, but mine would be that the whole point of an LMP is to take uncertainty out of the plan. In that sense there are no t...
by Artsdoctor
Tue Mar 30, 2021 10:31 am
Forum: Investing - Theory, News & General
Topic: LMP: Social Security, Inflation, and TIPS vs Nominals
Replies: 56
Views: 3572

Re: LMP: Social Security, Inflation, and TIPS vs Nominals

Hudson, As I was building my LMP, I didn't really see any torpedoes. Think of it along the same lines as purchasing an annuity: when you buy an annuity (let's stick with a SPIA for simplicity), you lock in your rate and income which can carry some risk. The same is true when you build your TIPS ladd...
by Artsdoctor
Tue Mar 30, 2021 9:38 am
Forum: Investing - Theory, News & General
Topic: LMP: Social Security, Inflation, and TIPS vs Nominals
Replies: 56
Views: 3572

Re: LMP: Social Security, Inflation, and TIPS vs Nominals

You're right to question the validity of inflation numbers associated with TIPS. However, there is no investment that I know of that will match your personal inflation numbers so you'll have to choose something. Yep. But I prefer to limit my exposure to that in 10 year rungs, because even if the fo...
by Artsdoctor
Tue Mar 30, 2021 8:35 am
Forum: Investing - Theory, News & General
Topic: LMP: Social Security, Inflation, and TIPS vs Nominals
Replies: 56
Views: 3572

Re: LMP: Social Security, Inflation, and TIPS vs Nominals

I'm definitely not an expert in building an LMP but no one I know of advocates using both TIPS and STRIPS with the goal of mitigating various investment risks in designing long-term LMPs. So, if STRIPS and TIPS pay the same absent unexpected inflation, why would I make a ladder that alternates the ...
by Artsdoctor
Tue Mar 30, 2021 8:28 am
Forum: Personal Investments
Topic: Setting up automatic ACH transfers of dividends/interest?
Replies: 17
Views: 1035

Re: Setting up automatic ACH transfers of dividends/interest?

I can tell you that Fidelity will automating transfer all dividends and interest from all investments into an account of your choosing on a designated day of the month. How do you do that? Can that account be an external bank account? Maybe I am imagining it, but it seems it is just a setting on li...
by Artsdoctor
Tue Mar 30, 2021 8:20 am
Forum: Personal Investments
Topic: Setting up automatic ACH transfers of dividends/interest?
Replies: 17
Views: 1035

Re: Setting up automatic ACH transfers of dividends/interest?

I'm trying to figure out why they're so restrictive, especially since there's been a gradual push away from mutual funds and to their ETFs in general. Probably because there are millions of Bogleheads who will complain about Vanguard's shortcomings but never actually switch to a competitor, so ther...
by Artsdoctor
Mon Mar 29, 2021 7:53 pm
Forum: Personal Investments
Topic: Setting up automatic ACH transfers of dividends/interest?
Replies: 17
Views: 1035

Re: Setting up automatic ACH transfers of dividends/interest?

In my Vanguard brokerage account, I can only do this with Vanguard mutual funds. It works fine. However, I hold a Vanguard ETF and it will not let me direct those dividends to my bank account. Likewise, it won’t let me for non- Vanguard ETFs or for individual stocks that I hold. I have to direct th...
by Artsdoctor
Mon Mar 29, 2021 7:48 pm
Forum: Investing - Theory, News & General
Topic: LMP: Social Security, Inflation, and TIPS vs Nominals
Replies: 56
Views: 3572

Re: LMP: Social Security, Inflation, and TIPS vs Nominals

The idea of trying to set up a "riskless" LMP and then putting some of it at risk on the idea that maybe nominal bonds will do better seems odd. In any case people would have a regular portfolio of stocks and bonds in addition to the LMP, at least presumably. It you want to add risk to th...
by Artsdoctor
Sun Mar 28, 2021 5:35 pm
Forum: Investing - Theory, News & General
Topic: LMP: Social Security, Inflation, and TIPS vs Nominals
Replies: 56
Views: 3572

Re: LMP: Social Security, Inflation, and TIPS vs Nominals

The idea of trying to set up a "riskless" LMP and then putting some of it at risk on the idea that maybe nominal bonds will do better seems odd. In any case people would have a regular portfolio of stocks and bonds in addition to the LMP, at least presumably. It you want to add risk to th...
by Artsdoctor
Sun Mar 21, 2021 4:02 pm
Forum: Personal Finance (Not Investing)
Topic: pay mortgage interest or property tax with traditional IRA withdrawals
Replies: 5
Views: 402

Re: pay mortgage interest or property tax with traditional IRA withdrawals

What's the wisdom (if any) of using traditional IRA withdrawals (past all penalty periods and 59 1/2 age threshold) to pay mortgage interest and/or property taxes? That would consume the deductions and the refund, but would also serve to re-balance my IRA portfolio toward the Roth side. All current...
by Artsdoctor
Sat Mar 06, 2021 10:51 am
Forum: Personal Finance (Not Investing)
Topic: Tax Loss Carryforwards
Replies: 29
Views: 1578

Re: Tax Loss Carryforwards

I would not reset your basis as you've described. You're 59. What part of the country do you live in? How much equity do you have in your home? If you're living in a high-cost of living area and if the capital gains you'd have after selling your house exceed the $250,000/$500,000, those carryover lo...
by Artsdoctor
Fri Mar 05, 2021 9:57 am
Forum: Personal Investments
Topic: CA HSA reporting question
Replies: 7
Views: 452

Re: CA HSA reporting question

You didn't mention capital gains but did your fund have any capital gains distributions as well? Just remember to add those in the CA adjustment. The only other thing you'll need to remember is that when you have capital gains or losses in your HSA, you'll need to figure that into your State Capita...
by Artsdoctor
Thu Mar 04, 2021 10:41 am
Forum: Personal Finance (Not Investing)
Topic: Tax Loss Harvesting - STCL and LTCL
Replies: 4
Views: 219

Re: Tax Loss Harvesting - STCL and LTCL

Agree with above. When it comes capital gains and losses, you really have no say in the matter. Gains and losses must be declared according to certain priorities; you can't pick and choose. The best way to really see what's going on is to take a look at Schedule D and play around with figures: https...
by Artsdoctor
Thu Mar 04, 2021 10:38 am
Forum: Investing - Theory, News & General
Topic: HSA as Emergency Fund
Replies: 22
Views: 1435

Re: HSA as Emergency Fund

Since the HSA is tax free on pretax earnings, investment growth and withdrawals... I would hesitate to use this money for anything other than a retirement savings account. There's a reason the government limits our HSA funding so much... because it's such a terrific long-term tax free vehicle. So d...
by Artsdoctor
Thu Mar 04, 2021 10:32 am
Forum: Personal Investments
Topic: CA HSA reporting question
Replies: 7
Views: 452

Re: CA HSA reporting question

That's pretty much all there is to it. If you're using TurboTax, you go to the California Return and then the Interest and Dividend Adjustment Worksheet. You'll scroll down to Line 19e where it will ask you for Dividend earned from Health Savings Account. That's where you will enter your dividends a...
by Artsdoctor
Sun Feb 28, 2021 3:58 pm
Forum: Investing - Theory, News & General
Topic: HSA as Emergency Fund
Replies: 22
Views: 1435

Re: HSA as Emergency Fund

Since the HSA is tax free on pretax earnings, investment growth and withdrawals... I would hesitate to use this money for anything other than a retirement savings account. There's a reason the government limits our HSA funding so much... because it's such a terrific long-term tax free vehicle. So d...
by Artsdoctor
Fri Feb 12, 2021 7:30 pm
Forum: Investing - Theory, News & General
Topic: Muni v. Aggregate Bonds
Replies: 19
Views: 1418

Re: Muni v. Aggregate Bonds

Mike Piper, after all of these years, still has one of the clearest explanations: https://obliviousinvestor.com/distribution-yield-vs-sec-yield-which-is-more-useful/ It's not an easy comparison, and I don't think that the distribution yield is "meaningless" but you should realize that the ...
by Artsdoctor
Thu Feb 11, 2021 7:06 pm
Forum: Personal Investments
Topic: Revocable Trust and W-9 form
Replies: 19
Views: 21997

Re: Revocable Trust and W-9 form

Line 1: My name as an individual. Line 3: Individual. Talk about resurrecting an old thread! Yes, the W-9 issued in 2018 had instructions which sought to clarify matching the individual on Line 1 with the box on Line 3. So if you have revocable trust: Line 1 is the grantor (the individual). Line 2 ...
by Artsdoctor
Thu Feb 04, 2021 6:01 pm
Forum: Personal Investments
Topic: What cost basis do you use and why?
Replies: 57
Views: 4228

Re: What cost basis do you use and why?

Specific Lot ID for everything with one exception: I use the short-term tax-exempt bond fund as a near-cash stash as well as a vehicle to bring the average bond duration of my portfolio down. The NAV changes so little and small quantities of cash are deposited into the fund, so I don't want to be b...
by Artsdoctor
Thu Feb 04, 2021 5:59 pm
Forum: Personal Investments
Topic: Is Re-Balancing My Portfolio Worth Doing?
Replies: 16
Views: 1466

Re: Is Re-Balancing My Portfolio Worth Doing?

Great exercise in taking a step back. Ask yourself what exactly you're hoping to accomplish with rebalancing. First, what's your asset allocation goal overall. Are you planning on staying at around 60/40? Or is the fact that you're nearing retirement going to play into ratcheting down your asset all...
by Artsdoctor
Thu Dec 31, 2020 6:43 pm
Forum: Personal Investments
Topic: LifeStrategy Fund in Taxable account
Replies: 34
Views: 5086

Re: LifeStrategy Fund in Taxable account

X528, Several years ago upthread I posted my misgivings about holding LifeStrategy funds in a taxable account, and I'm even more convinced now that they are not well suited for a taxable account. As you add to the funds, they may well balloon over many years so in answer to your question, I would be...
by Artsdoctor
Tue Dec 29, 2020 5:27 pm
Forum: Investing - Theory, News & General
Topic: What do you use as the Tax Loss Harvest Partner for Total Market Index (VTSAX)?
Replies: 14
Views: 959

Re: What do you use as the Tax Loss Harvest Partner for Total Market Index (VTSAX)?

I tax-loss harvested endlessly throughout 2008-2009, and jumped back and forth between Total Market, Large Cap, and S&P 500. They are similar but definitely not identical.
by Artsdoctor
Tue Dec 29, 2020 5:25 pm
Forum: Investing - Theory, News & General
Topic: Which total stock market fund for $300k to invest?
Replies: 21
Views: 2915

Re: Which total stock market fund for $300k to invest?

They're all pretty much the same. There are very minor differences but it's really like dancing on the head of a pin. VTI is the ETF version of the original mutual fund, VTSAX. The VTI is slightly cheaper and if you're going to buying in 6-digit lots and/or your balance is going to be 6 digits or mo...
by Artsdoctor
Tue Dec 29, 2020 5:15 pm
Forum: Personal Finance (Not Investing)
Topic: Vanguard cash reserve check writing
Replies: 28
Views: 1942

Re: Vanguard cash reserve check writing

Thank you for posting this. I want to make sure that I have this right. Vanguard currently shows 4 taxable money market funds: Cash Reserves Federal Money Market (VMMXX), Cash Reserves Federal Money Market Admiral Shares (VMRXX), Federal Money Market (VMFXX), and Treasury Money Market (VUSXX). VMFXX...
by Artsdoctor
Tue Dec 29, 2020 4:55 pm
Forum: Personal Finance (Not Investing)
Topic: $300 charitable deduction for nonitemizers for 2021 and expands to $600 for MFJ
Replies: 28
Views: 3458

Re: $300 charitable deduction for nonitemizers for 2021 and expands to $600 for MFJ

I read somewhere (possibly NY Times) that the 2021 version will be a "below the line deduction". That means it will reduce taxable income but not AGI. That makes no sense. Then it simply becomes an itemized deduction with a much higher limit and useless to 90% of taxpayers. Gill I thought...
by Artsdoctor
Sat Dec 26, 2020 4:43 pm
Forum: Personal Investments
Topic: HSA + California + Treasury Fund = cap gains. Why did I do that?
Replies: 5
Views: 678

Re: HSA + California + Treasury Fund = cap gains. Why did I do that?

There comes a point when you realize that it's just not that big of a deal to deal with a HSA in California. From a state point of view, it is a taxable account and it should be handled like one, taking into consideration dividends, capital gains, and capital losses. The only real way to avoid any t...
by Artsdoctor
Sun Dec 06, 2020 7:15 pm
Forum: Investing - Theory, News & General
Topic: No year end distributions? [Vanguard fund distributions]
Replies: 22
Views: 3087

Re: No year end distributions?

https://personal.vanguard.com/pdf/RTPYEEST_112020.pdf Looking for the year end distributions. Looks like no year end distributions for Total Stock Market (VTSAX), Total International (VTIAX), 500 Index fund (VFIAX), FTSE All World Ex-US (VFWAX). Am I looking at the right info? Can't remember ever n...
by Artsdoctor
Mon Nov 23, 2020 6:00 pm
Forum: Personal Investments
Topic: Recommendations on a DAF provider
Replies: 26
Views: 1972

Re: Recommendations on a DAF provider

I have both Fidelity and Vanguard DAFs. Fidelity is better. I opened the Vanguard DAF when I had very complex donating needs and I didn't want to take the chance of screwing up specific lots going from Vanguard to Fidelity. I have no idea what your cost basis looks like, but I would donate the most ...
by Artsdoctor
Mon Nov 23, 2020 5:55 pm
Forum: Personal Finance (Not Investing)
Topic: Turbo Tax Accuracy?
Replies: 18
Views: 1172

Re: Turbo Tax Accuracy?

We’ve had a pretty straightforward return for the last number of years following early retirement and have used TurboTax after previously having used an accountant while I was in full-time work. Some have told me recently that they have saved money using an accountant. Some indicating that TurboTax...
by Artsdoctor
Mon Nov 23, 2020 5:50 pm
Forum: Investing - Theory, News & General
Topic: Anyone here mostly cash in portfolio?
Replies: 210
Views: 22126

Re: Anyone here mostly cash in portfolio?

Since the March lows I've made a mistake of selling almost all of my equities. With everything up now, I realized I made a big mistake. Anyone in a similar situation and what did you end up doing? Kareysue, I took the liberty of searching your previous posts here. What I see is someone who is undis...
by Artsdoctor
Thu Nov 19, 2020 7:16 pm
Forum: Investing - Theory, News & General
Topic: Bond funds in taxable: How much can tax loss harvesting mitigate the risk of increases in interest rates?
Replies: 30
Views: 2365

Re: Bond funds in taxable: How much can tax loss harvesting mitigate the risk of increases in interest rates?

There's essentially nothing good about short-term capital gains distributions. The NAV drops by that amount and you have nothing to offset the distribution against. The best you can hope for is to learn which mutual funds are likely to distribute them and stay away from those funds in your taxable a...
by Artsdoctor
Thu Nov 19, 2020 7:12 pm
Forum: Personal Investments
Topic: How Much will Tax Loss Harvesting Reduce Future Tax?
Replies: 14
Views: 1028

Re: How Much will Tax Loss Harvesting Reduce Future Tax?

After reading the Wiki on loss harvesting recommended above, my understanding is that in future years, 2021 and beyond, I will be able to use my 2020 realized losses to offset realized capital gains over and above the $3,000 that I can use to offset income gains from dividends each year. Is my unde...
by Artsdoctor
Thu Nov 19, 2020 6:55 pm
Forum: Investing - Theory, News & General
Topic: Bond funds in taxable: How much can tax loss harvesting mitigate the risk of increases in interest rates?
Replies: 30
Views: 2365

Re: Bond funds in taxable: How much can tax loss harvesting mitigate the risk of increases in interest rates?

One-quarter of that will be short-term capital gains distributions so you can't use any losses to offset those. I don’t think that is correct According to Vanguard's projections, it is: https://investornews.vanguard/mark-your-calendar-for-year-end-fund-distributions-3/ They're set to distribute $4....
by Artsdoctor
Thu Nov 19, 2020 6:49 pm
Forum: Investing - Theory, News & General
Topic: Another dividend vs total market post
Replies: 35
Views: 2020

Re: Another dividend vs total market post

Like anything else, it's all about the timing. Your 10-year period might be different from mine. Using Morningstar, VFINX increased 260% between 11/19/2010 and 11/18/2020 whereas VDIGX increased 247%. However, you'd also have to consider the taxation of dividends which would be greater with VDIGX. I...
by Artsdoctor
Thu Nov 19, 2020 6:33 pm
Forum: Investing - Theory, News & General
Topic: Bond funds in taxable: How much can tax loss harvesting mitigate the risk of increases in interest rates?
Replies: 30
Views: 2365

Re: Bond funds in taxable: How much can tax loss harvesting mitigate the risk of increases in interest rates?

Anyone else with experience holding long term treasury funds in taxable-in particular STRIP funds such as EDV/ZROZ/etc? Seems like this environment is the perfect time if looking to free up tax advantaged space for less efficient equities given distributions on EDV are <2%/year and there is reasona...
by Artsdoctor
Mon Nov 09, 2020 5:13 pm
Forum: Investing - Theory, News & General
Topic: Capital gains tax question
Replies: 8
Views: 1260

Re: Capital gains tax question

Since your income is over 200,000 you have to pay the Obamacare tax of 3.8% on top of the 20% capital gains tax. Then the 5% for state gets added. So you will pay 28.8% on the gain. I also used to imagine the worst case scenario but once I started using tax software, I realized that rates were not ...
by Artsdoctor
Sat Oct 31, 2020 4:58 pm
Forum: Investing - Theory, News & General
Topic: Vanguard Brokerage Account Misinformation Correction Thread
Replies: 60
Views: 4700

Re: Vanguard Brokerage Account Misinformation Correction Thread

At the current time, you CANNOT automatically direct dividends from one mutual fund to purchase shares of a different mutual fund on the new brokerage platform. So I exchanged Vanguard Total International Index Fund (VTIAX) to Vanguard Total Stock Market Index Fund (VTSAX) in our taxable brokerage ...
by Artsdoctor
Thu Oct 01, 2020 8:47 pm
Forum: Personal Investments
Topic: Long Suffering VXUS Holder No More
Replies: 216
Views: 20848

Re: Long Suffering VXUS Holder No More

In retrospect, why not just invest 100% of your assets in Total Market and call it a day? These international threads are problematic but if you feel like bailing, just do it. International is complex because you have the markets and you have the foreign currency exchange. Too many moving pieces for...
by Artsdoctor
Thu Sep 24, 2020 1:44 pm
Forum: Personal Investments
Topic: Dividend Stocks: Sell now or wait until I formulate my investment plan?
Replies: 11
Views: 1034

Re: Dividend Stocks: Sell now or wait until I formulate my investment plan?

I'd avoid making decisions based solely on taxes but they are a consideration. You say that you've inherited stocks "recently." The cost bases of stocks is set on the date of death. If your inherited stocks "recently" that have appreciated, make sure you are familiar with short-...
by Artsdoctor
Wed Sep 23, 2020 2:04 pm
Forum: Personal Investments
Topic: Portfolio Help: Struggling to Pick Emerging Markets and or International
Replies: 32
Views: 2311

Re: Portfolio Help: Struggling to Pick Emerging Markets and or International

Very good questions. I used to slice and dice, and I used developing markets and emerging markets separately. It was great to tax-loss harvest one without the other (EM is usually for volatile). At one time, I had a lot of "stuff" going on in a taxable account, a tax-deferred account, and ...
by Artsdoctor
Wed Sep 23, 2020 1:58 pm
Forum: Personal Finance (Not Investing)
Topic: Are you taking 2020 RMD anyhow?
Replies: 25
Views: 2213

Re: Are you taking 2020 RMD anyhow?

Tax rates are incredibly low for many investors. It might be true that you don't have to take an RMD, but that doesn't necessarily mean that you shouldn't. If the tax ramifications will be meager, take advantage of that and get the money out of the IRA (either by sending it to your taxable account o...
by Artsdoctor
Wed Sep 23, 2020 1:54 pm
Forum: Investing - Theory, News & General
Topic: Never Ever Rebalance Bonds into Stocks?
Replies: 300
Views: 27309

Re: Never Ever Rebalance Bonds into Stocks?

There is something to be said for liquidity. An investor may view their bond allocation in terms of X years' expenses and be unwilling to see their bond allocation drop below that number. That's a reasonable position but the OP was asking about rebalncing which is a risk management tool. The positi...