Search found 1197 matches

by powermega
Fri Nov 17, 2023 8:07 pm
Forum: Personal Consumer Issues
Topic: Old laptop disposal advice
Replies: 14
Views: 1431

Re: Old laptop disposal advice

Best Buy also takes electronics for recycling.
by powermega
Fri Oct 27, 2023 9:44 am
Forum: Personal Investments
Topic: Municipal Bond ETFs: SCMB vs VTEB
Replies: 1
Views: 581

Municipal Bond ETFs: SCMB vs VTEB

I am interested in expanding my bond holdings to include municipal bonds. Having an account at Schwab, I tend to like to use their ETFs, all else being equal. The question is whether all else is "equal".

SCMB has been trading for about a year now. I understand wanting to avoid this ETF when it was in its infancy, but how about now? It's small compared to VTEB, but is it big/liquid enough now? Do you think it's still too small? Is a smaller size better or worse for tracking the index? Anything else to consider?

SCMB vs VTEB

Avg. bid/ask spread percent: 0.08% vs 0.02%
AUM: $173M vs $28B
Daily dollar volume: $2M vs $363M

https://www.etf.com/etfanalytics/etf-co ... MB-vs-VTEB
by powermega
Mon Jul 03, 2023 12:31 pm
Forum: Personal Investments
Topic: Deciding on annuitization options
Replies: 3
Views: 411

Re: Deciding on annuitization options

Guaranteed payouts are for the benefit of beneficiaries. For that reason, I normally believe that non-guaranteed annuities are best if the annuity income is being immediately used for every day expenses by the person buying the annuity. Yes, if you happen to die the day after buying one of these, you're out the money you used to buy the annuity, but you're also dead so none of this matters to you. If possible, see what the quote is on a "single life only" annuity for comparison. If the annuity is used to pay for something specific that needs an ongoing income to service, that's another matter. Buying an annuity as a form of charity is also another. If leaving money in the estate is a priority, that is yet another. In these cases, ...
by powermega
Sat Jul 30, 2022 7:59 pm
Forum: Personal Investments
Topic: Where to park 100k emergency fund.
Replies: 57
Views: 9985

Re: Where to park 100k emergency fund.

An online savings account could be a good option. For example, Discover Bank offers 1.3% on their savings accounts.

https://www.discover.com/online-banking ... s-account/

I'm sure you could find better than that too. If you're not concerned about some price fluctuation, you could look into a short term treasury ETF.
by powermega
Sat Jul 02, 2022 11:15 pm
Forum: Personal Consumer Issues
Topic: Colorado Springs - 1 day tourism
Replies: 33
Views: 3064

Re: Colorado Springs - 1 day tourism

US Olympic Muesum (NOT the training center, the new museum that opened up downtown). https://usopm.org/

Garden of the Gods. https://www.gardenofgods.com/

Glen Eyrie Castle. https://gleneyrie.org/


I would normally list the Air Force Academy here too, but the chapel is under renovation.
by powermega
Mon Jan 03, 2022 3:11 pm
Forum: Personal Investments
Topic: Life expectancy factor for RMD from Inherited IRA
Replies: 4
Views: 446

Re: Life expectancy factor for RMD from Inherited IRA

I wish I had searched for this thread before waiting for two hours for Vanguard support...

Geologist answered this question well. I went back into the new LE table to the age for my first RMD and subtracted one from each subsequent year and arrived at the factor that is now being used.
by powermega
Sun Jan 02, 2022 12:38 pm
Forum: Investing - Theory, News & General
Topic: Anyone planning to do a Backdoor Roth and continue After Tax Contributions for Mega Backdoor
Replies: 109
Views: 12949

Re: Anyone planning to do a Backdoor Roth and continue After Tax Contributions for Mega Backdoor

Yes, going forward with backdoor Roth. Current law is all that matters, and current law allows this.
by powermega
Thu Dec 30, 2021 11:33 am
Forum: Personal Finance (Not Investing)
Topic: A quick question about RMD on inherited Roth
Replies: 11
Views: 651

Re: A quick question about RMD on inherited Roth

One thing to know is whether the deceased account holder had a required 2021 RMD themselves, and whether they took out the RMD they were required to take out for 2021. If not, you will need to make that distribution, ideally before the end of the year.

EDIT: The IRA is a Roth IRA, so the deceased account holder did not have an RMD due in 2021 to worry about.

Your own RMDs will be due in sometime in 2022 based on the account value on 12/31/21.

Investopedia Link
by powermega
Wed Dec 08, 2021 3:57 pm
Forum: Personal Finance (Not Investing)
Topic: Term life insurance that pays like an annuity?
Replies: 9
Views: 636

Re: Term life insurance that pays like an annuity?

The death benefit proceeds bypass the probate process on your estate and flow directly to the beneficiaries of the policy. Those proceeds are also tax free for the beneficiaries. I have never heard of a life insurance product with an annuity payout for the death benefit. I suppose one possibility is to create a trust that can define the rules for the death benefit proceeds, but that seems like it's going against the principle you have to keep things simple. JMHO, but it would be best to leave the death benefit proceeds as a lump sum, and let the beneficiaries do what's best for themselves. One may want to get an annuity, and another might want to use the lump sum directly (pay down a mortgage, etc). Leave the beneficiaries with the most fle...
by powermega
Thu Jul 01, 2021 9:39 pm
Forum: Personal Investments
Topic: The Difference Between Index ETFs and Mutual Funds
Replies: 88
Views: 7173

Re: The Difference Between Index ETFs and Mutual Funds

Mutual funds make more sense in a qualified account. ETFs make more sense in a taxable account.
by powermega
Fri Jun 11, 2021 7:02 am
Forum: Personal Investments
Topic: ETF vs Mutual Fund
Replies: 22
Views: 3031

Re: ETF vs Mutual Fund

I don't see any advantage to ETFs in a qualified account like an IRA. In fact, there are clear advantages of using mutual funds in a qualified account that has regular contributions that need to be invested. I do use ETFs in my taxable account.
by powermega
Sat Feb 06, 2021 9:29 am
Forum: Personal Finance (Not Investing)
Topic: Whole Life Insurance
Replies: 111
Views: 9511

Re: Whole Life Insurance

I consider purchasing my whole life policy 13 years ago as somewhere between a mistake and a terrible mistake. Now that the cash value is about 80% of what I've put in, I'm thinking it's time to cancel the policy and invest that money, and also invest the future premiums. I don't feel good that I got ripped off, but it seems like just paying in to this policy for another 19 years is foolish. I likely could have covered a large percentage (if not the full amount) of the death benefit based on what I've paid already if I lived until 60 or 65 if I put the money in a SP500 index over those past 13 years. :annoyed It was a terrible mistake. by the way ive done the same. with that said, at 13 years, you likely are at the point where returns goin...
by powermega
Sat Jan 23, 2021 12:39 pm
Forum: Personal Finance (Not Investing)
Topic: Online Car Loans?
Replies: 7
Views: 977

Re: Online Car Loans?

Lightstream +1 as a happy Lightstream customer. We actually have two loans with them. At the time, they offered the lowest interest rates we could find. When we last bought a car, we found a lower rate with a local credit union and went with them instead, but Lightstream was the first option we explored. Lightstream's underwriting model is based on top shelf credit scores, and other indicators of wealth like retirement account balances, home ownership, etc. The lend to a narrow slice of the market, but they can offer lower rates because of that. The loans are technically not secured loans, so they will wire you the cash and you pay for the car as a cash sale and take immediate ownership of the title of the car. The unsecured nature of the ...
by powermega
Fri Jan 01, 2021 2:39 pm
Forum: Investing - Theory, News & General
Topic: Do you lump sum full amount into IRA at beginning of the year?
Replies: 49
Views: 3794

Re: Do you lump sum full amount into IRA at beginning of the year?

Yes. Investing the IRA contributions is just part of a larger overall portfolio re-balancing event. HSA and taxable accounts treated the same way.
by powermega
Sat Dec 26, 2020 10:51 am
Forum: Personal Consumer Issues
Topic: Health Trackers?
Replies: 10
Views: 1088

Re: Health Trackers?

I've used a Fitbit for many years now. Happy user. Currently using a Charge 4.
by powermega
Sat Dec 26, 2020 10:34 am
Forum: Personal Consumer Issues
Topic: Continental Tires
Replies: 24
Views: 2395

Re: Continental Tires

We have Continental Extreme Contact tires on two of our cars. Great tires.
by powermega
Tue Dec 08, 2020 1:42 pm
Forum: Personal Finance (Not Investing)
Topic: HDHP vs PPO help calculating (family planning)
Replies: 51
Views: 2421

Re: HDHP vs PPO help calculating (family planning)

I have a simple spreadsheet that I use for comparing the PPO and HD plans. I plugged in your numbers and you can see the result here:

https://docs.google.com/spreadsheets/d/ ... sp=sharing

From what I can tell, the HD plan has a lower after tax outlay than the PPO plan at any level of health care expenses. Normally there is a cross over point where the PPO plan has a lower outlay above a certain expense amount.

Feel free to make a copy of the spreadsheet for your own purposes too.
by powermega
Thu Dec 03, 2020 12:42 pm
Forum: Personal Finance (Not Investing)
Topic: 529 account - is there a better way?
Replies: 175
Views: 10462

Re: 529 account - is there a better way?

trying to find the best way to save for my kid's education. If i put the money in a 529 account i can reduce my taxable income right away, and when I withdraw it for education expenses it's tax free. the downside is that the 529 account is considered a students asset for financial needs calculation. i thought about putting education savings in my 401k or IRA (which is not a part of financial needs calculation) and doing an education withdrawal when tuition needs to be paid. i can avoid the 10% early withdrawal penalty but that withdrawal would be taxed as income. is there a better way or is 529 the best i can do? Remember that withdrawing from a 401k or IRA would all be added to your gross income, which could end up counting against you ev...
by powermega
Mon Nov 30, 2020 4:34 pm
Forum: Personal Finance (Not Investing)
Topic: Maintaining high FICO score
Replies: 45
Views: 3901

Re: Maintaining high FICO score

Anything higher than 800 will qualify you for the best credit pricing available for loans. Even 750+ would likely get you the best credit pricing for the vast majority of lenders.
by powermega
Mon Nov 30, 2020 4:31 pm
Forum: Personal Investments
Topic: Married Retirement Couple Maxing Order?
Replies: 16
Views: 2312

Re: Married Retirement Couple Maxing Order?

I think the general order for most people is this:

1. Max 401k company match.
2. Max the rIRAs (both people).
3. Max 401k.

Sounds to me that you're working on completing #2 right now.
by powermega
Wed Oct 14, 2020 11:31 pm
Forum: Personal Investments
Topic: Schwab International fund
Replies: 2
Views: 794

Re: Schwab International fund

Being a taxable account, ETFs would definitely be a better investment than traditional mutual funds.

VXUS give you one complete ETF for the entire world. Simple and complete.

SCHF, SCHE, SCHC are the Schwab ETFs that fill out the international space. 70/20/10 percent weighting (roughly) to match VXUS. The advantage of having 3 ETFs instead of 1 would be the increased tax-loss harvesting opportunities.
by powermega
Thu Jul 23, 2020 10:51 am
Forum: Personal Finance (Not Investing)
Topic: Salvaging funds from IUL - Index Universal Life Insurance
Replies: 14
Views: 1152

Re: Salvaging funds from IUL - Index Universal Life Insurance

Don't surrender/cancel the policy. Stop putting money into the IUL policy and just let the policy charges eat up the Cash Value of the policy. Eventually the policy will lapse, but during this time at least you still have life insurance. If you surrender the policy, you get nothing. The only way to realize the Cash Value money is to use it to pay policy charges. If you have a life insurance need, you can address that need with a cheap term insurance policy that you should get issued before the IUL policy lapses.
by powermega
Sun Jun 14, 2020 9:34 pm
Forum: Personal Investments
Topic: Dump 40 year old whole life policy?
Replies: 20
Views: 2303

Re: Dump 40 year old whole life policy?

I would keep that sucker, I might even put more cash in it since the interest rate is so much better than anything else. You should research how much you can overfund before it converts into a MEC. If the policy is really 40 years old, then it cannot become a MEC. Only policies issued after 1988 have that rule applied to them. For more information, see here https://www.investopedia.com/terms/m/modified-endowment-contract.asp As for the OP... I would assume that the policy would not allow you to put more premium into it than the required premium, but that could be something to investigate. A "vintage" whole life policy like this is probably a better "no risk" investment than you could find elsewhere. Make sure your divid...
by powermega
Wed Apr 01, 2020 5:42 pm
Forum: Personal Consumer Issues
Topic: Online / Gun Dealer Recommendations
Replies: 101
Views: 11647

Re: Online / Gun Dealer Recommendations

Go to a good indoor range (look up GSSF 4 and 5 star ranges) and find one near you that is hopefully still open. Get instruction and rent several pistols to find one that fits your hands and points and shoots well for you. Glocks are great pistols but there may be others that "fit" you better. Semi-auto pistols are an incredibly personal choice, and it depends if you're looking for a home/vehicle defense pistol, or a highly concealable one. +1 on renting and trying out some different guns. If you already know what you're looking for, this step is not necessary. If you're entering the market for the first time, it really is worth the time to try out some different guns. A typical shooting range should have a selection of pistols t...
by powermega
Thu Mar 12, 2020 12:10 pm
Forum: Investing - Theory, News & General
Topic: Why are bonds falling?
Replies: 236
Views: 9650

Re: Total Bond Market Down >4%

I remember Bogleheads like Larry Swedroe making the case that intermediate treasuries are a better bond allocation than the total bond market. It's during times like these that it's easy to understand his point. Corporate bonds have a higher correlation to the stock market than treasuries. Treasuries also don't have Credit Risk or Call Risk either.
by powermega
Thu Feb 27, 2020 2:16 pm
Forum: Personal Investments
Topic: What's your TLH trigger/timing?
Replies: 23
Views: 2695

Re: What's your TLH trigger/timing?

Our IPS says to sell all losing positions in early December. We rebalance in early January, so that's when we would repurchase positions. I don't care enough to use a swap fund.
by powermega
Thu Feb 20, 2020 5:00 pm
Forum: Personal Finance (Not Investing)
Topic: Basic HSA question
Replies: 14
Views: 1573

Re: Basic HSA question

JD2775 wrote: Thu Feb 20, 2020 4:18 pm
WarAdmiral wrote: Thu Feb 20, 2020 4:16 pm That is my understanding too.
Ok, that makes sense....

With the rising costs of health care though every year, by the time I am actually retired I think I will need every dollar in that account for actual medical expenses so I don't see myself being too worried about saving receipts now...
That's what I think too. I think our future medial expenses will be much greater than our HSA account. I'm not worried about keeping receipts.
by powermega
Thu Feb 06, 2020 5:32 pm
Forum: Personal Finance (Not Investing)
Topic: Surrender Flexible Premium Variable Life Policy?
Replies: 10
Views: 687

Re: Surrender Flexible Premium Variable Life Policy?

I'm not going to discuss whether you should keep the policy or not, just how you could avoid taxes with it... A first step you could do would be to withdrawal your tax basis ($300k), which would be tax-free. This will reduce your face amount and cash value. You could then also request a face decrease, which will further reduce your face amount, but not your cash value. By doing so, you will reduce the Net Amount at Risk (NAAR). NAAR = FaceAmount - CashValue. It is the NAAR that the cost of insurance (COI) is calculated on. At that point, you would have a policy that is built on "house money", and would also be as lean as it could be fee-wise. There are some fees in the policy that are relatively fixed, but the COI is a variable ch...
by powermega
Thu Feb 06, 2020 11:06 am
Forum: Personal Investments
Topic: How much REIT in portfolio?
Replies: 57
Views: 7994

Re: How much REIT in portfolio?

10% of our equity allocation goes to REITs. We also have a single rental property.
by powermega
Wed Feb 05, 2020 8:00 am
Forum: Investing - Theory, News & General
Topic: Does Schwab's growth threaten Vanguard's domination (article)
Replies: 100
Views: 6871

Re: Allan Roth: Schwab is now a huge threat to Vanguard

In my ideal world.....I could direct index/ invest every bit of income immediately... via fractional shares. This platform would create free and seamless tax loss harvesting.... the platform would also have a checking account tied to it, where I could keep whatever level of cash I wanted for everyday expenses, e.t.c...... but could instantly/ seamlessly transfer between the checking and brokerage account. I would be willing to trade off earning zero on my checking account balance for these features. That seamless integration between accounts exists at Schwab today. I'm a very happy customer there (also a Vanguard customer). I can instantly transfer money between the bank and brokerage accounts, and the money is immediately available for tr...
by powermega
Wed Jan 29, 2020 4:18 pm
Forum: Personal Investments
Topic: AXA Advisor - VUL and Term Insurance
Replies: 36
Views: 2728

Re: AXA Advisor - VUL and Term Insurance

This post has a couple of errors: 1. You can take withdrawals from a VUL policy, not just loans. 2. If the VUL policy is a Modified Endowment Contract (MEC), then the withdrawals would come from gain first, then basis. I'm quite sure that the policy that being proposed is not a MEC, in which case the withdrawals would come from basis first, then gain. As to the OP, I would say that if you need $2M in life insurance, that you get $2M in term insurance and don't bother with the VUL policy. The advice to contribute to a VUL policy instead of doing backdoor Roth conversions is especially poor advice. Just keep managing your 3-fund portfolio the way you always have. Just because the dollar amounts get bigger does not make the portfolio any more...
by powermega
Wed Jan 29, 2020 3:01 pm
Forum: Personal Investments
Topic: AXA Advisor - VUL and Term Insurance
Replies: 36
Views: 2728

Re: AXA Advisor - VUL and Term Insurance

DO NOT INVEST IN VUL!!! Variable Universal Life Insurance, basically, is an investment vehicle where the death benefit amount is variable, based on the investment returns. But what happens is that, when you contribute $10k into the fund, for example, some $800 is taken out for "mortality charges" and other expenses. Worse, you cannot withdraw from this when you have a need. You can only "take a loan" against that VUL, and the loan would start accruing interest charges, and that interest starts eating away at your money. Also, it's my understanding that if you do any "withdrawal" (meaning actual withdrawal and not a "loan") from the account, it's taken as "gains" withdrawal first before you ...
by powermega
Tue Jan 28, 2020 9:42 pm
Forum: Personal Finance (Not Investing)
Topic: Whole Life Insurance
Replies: 11
Views: 1134

Re: Whole Life Insurance

With whole life, there are two components of the cash value and death benefit: the Base portion, and the paid-up additions (PUA) portion. You can withdrawal from the PUA, but not the Base. You'll get PUA in the policy from policy dividends (if your dividend option is to buy PUA), and from paying premium in excess of the required premium for the Base. You can take loans against the Base and PUA cash value. If the policy is not a Modified Endowment Contract (MEC), then withdrawals will come from basis first, then gain. If a MEC, then like an annuity withdrawals come from gain first, then basis. Only withdraws from gain is taxed as income. Be careful about letting the policy get "over-loaned". If the loan balance gets to be close to ...
by powermega
Tue Jan 28, 2020 5:40 pm
Forum: Personal Investments
Topic: how to sell shares tax-smart?
Replies: 14
Views: 1108

Re: how to sell shares tax-smart?

I think Schwab's "Tax Lot Optimizer" method is generally good, especially if you're talking about realizing some kind of gain with the sale of position(s). Short-term Losses: Lots reflecting short-term losses are sold first, from greatest short-term loss to least short-term loss. Long-term Losses: Lots reflecting long-term losses are sold, from greatest long-term loss to least long-term loss. Short-term, no gains nor losses: Short-term lots that reflect no gain nor loss Long-term, no gains nor losses: Long-term lots that reflect no gain nor loss Long-term Gains: Lots reflecting long-term gains from least long-term gain to greatest long-term gain Short-term Gains: Lots reflecting short-terms gains from least short-term gain to grea...
by powermega
Mon Jan 27, 2020 10:15 am
Forum: Personal Investments
Topic: Inherited IRA or Traditional. ex advisor not helpful
Replies: 59
Views: 4702

Re: Inherited IRA or Traditional. ex advisor not helpful

teacher2163 wrote: Mon Jan 27, 2020 7:57 am I know this covers his RMD for the year, but my next question is since the money was put into Primerica and it was over $8000 do I now have an issue with being over the 2019 contribution limit for an IRA of $6000 and if so what would the steps be to fix this?
When the money was transferred to Primerica, it was a direct trustee transfer of an inherited IRA. That transfer money ($8k) does not count against the allowable IRA contribution for your personal IRA for 2019.
by powermega
Sat Jan 25, 2020 5:17 pm
Forum: Investing - Theory, News & General
Topic: Does Schwab's growth threaten Vanguard's domination (article)
Replies: 100
Views: 6871

Re: Does Schwab's growth threaten Vanguard's domination (article)

Would you supply more details. Like if I have say 3 lots each with fractional shares can I sell just the fractional parts of all three at one time assuming I'm using specific ID cost basis method? The recent scenario I had was that I was swapping out SLYV and IJS for VBR in qualified accounts at Schwab and Fidelity. In other words, sell all shares of each and use the proceeds to buy new shares of VBR. Both accounts had reinvested distributions so both accounts held fractional shares of their respective ETFs. With Schwab, I was able to enter all of the shares, including the fractional shares, for the sell trade which immediately executed. With Fidelity, I could only enter whole shares. By doing so, I got a warning for the trade to effect th...
by powermega
Sat Jan 25, 2020 8:12 am
Forum: Investing - Theory, News & General
Topic: Does Schwab's growth threaten Vanguard's domination (article)
Replies: 100
Views: 6871

Re: Does Schwab's growth threaten Vanguard's domination (article)

Doc wrote: Sat Jan 25, 2020 6:47 am
jhfenton wrote: Fri Jan 24, 2020 8:06 pm According to a Schwab spokesperson quoted in an ETF.com article, the fractional shares initiative will only apply to stocks, at least in 2020.
Last week I set up a reinvest dividends option on an ETF at Schwab. Will find out in a few weeks what the true story is.
Schwab has had the ability to reinvest ETF distributions for some time. I've had fractional shares of ETFs for years now as a result of this. DW's 401k at Fidelity has the same features. I think the distinction is executing buy trades for fractional shares, which no major broker does right now.

FWIW, Schwab can execute sell trades with fractional shares easily. Fidelity's handling of this is more clunky.
by powermega
Fri Jan 24, 2020 8:08 pm
Forum: Personal Finance (Not Investing)
Topic: HSA receipts
Replies: 64
Views: 5747

Re: HSA receipts

I don't see the point in hassling over small receipts. Health care expenses are a major part of retirement expenses. I can't see how it would be hard to blow through an HSA when you're racking up the kind of health care expenses you'll see in your 60s, 70s, and 80s.
by powermega
Fri Jan 24, 2020 2:00 pm
Forum: Personal Investments
Topic: Inherited IRA or Traditional. ex advisor not helpful
Replies: 59
Views: 4702

Re: Inherited IRA or Traditional. ex advisor not helpful

Like Alan said above, it's rare but sometimes custodians do make a mistake in the creation of the inherited IRA. I do think you need to elevate this issue beyond the normal customer service level since your adviser is not responding to your calls. Like others have said, an inherited IRA cannot be rolled over to a personal IRA, and you cannot convert it to a personal Roth IRA. 1. If the traditional IRA you have with them is in fact an inherited traditional IRA, then Primerica needs to let you know asap if there is an RMD due for tax year 2019. If your dad was older than 70.5 years old and had not taken the RMD for 2019 at the time of his death, then you and your brother would have to withdrawal his RMD from your inherited traditional IRAs. T...
by powermega
Fri Jan 24, 2020 12:32 pm
Forum: Investing - Theory, News & General
Topic: Does Schwab's growth threaten Vanguard's domination (article)
Replies: 100
Views: 6871

Re: Does Schwab's growth threaten Vanguard's domination (article)

I agree with Alan's point in the article that the ability for fractional shares opens up the capability for direct index investing. This would be a feature that is only relevant to taxable investment accounts, but it has the ability to allow enormous tax-loss harvesting and essentially zero cost index investing. It would have to be something that is automated, but that's where Schwab already has a considerable investment in capability.

Overall, I only see all of this as a positive for retail investors.
by powermega
Thu Jan 23, 2020 8:37 am
Forum: US Chapters
Topic: Sad news: LadyGeek's husband has passed
Replies: 352
Views: 37555

Re: Sad news: LadyGeek's husband has passed

Very sorry to hear about your loss LadyGeek. Thank you for sharing all of this with us. My thoughts and prayers are with you and your family.
by powermega
Wed Jan 22, 2020 3:40 pm
Forum: Personal Investments
Topic: Should I move my 401k funds from VTIVX (Target Ret. 2045) to VTSAX/others? Based on ER
Replies: 8
Views: 965

Re: Should I move my 401k funds from VTIVX (Target Ret. 2045) to VTSAX/others? Based on ER

The difference between the VTTHX (2035 TDF) and its weighted average components is about 0.07%. In other words, it works out to $70 for every $100k you have invested. Whether that's important to you is really up to you. I like the TDFs because of the simplicity and lack of rebalancing needed.

Like the previous poster mentioned, to get a comparable portfolio, you would need to have 10% of your entire portfolio in a bond fund in your 401k.
by powermega
Sat Jan 18, 2020 11:55 am
Forum: Personal Investments
Topic: Incorrect basis in Roth IRA
Replies: 7
Views: 891

Re: Incorrect basis in Roth IRA

Like 123 said above, tax qualified accounts (IRAs, 401ks, etc) do not have a notion of cost basis. Some custodians might keep track of the cost basis and gain/loss in those accounts, but it's really meaningless. There are no taxable events for transactions that occur within one of these accounts. What about non-deductible traditional IRAs? Financially savvy folks no longer do these in favor of backdoor Roth IRAs. But before backdoor IRAs were allowed, some high earners with a work related tax sheltered account would do this. That's a different kind of "basis" than what the OP was referring to. The OP was referring to the basis and gain/loss of an individual investment held within a qualified account. That is irrelevant, even in a...
by powermega
Sat Jan 18, 2020 11:48 am
Forum: Personal Investments
Topic: Need help on deciding regarding VULs
Replies: 29
Views: 1694

Re: Need help on deciding regarding VULs

The deal with VUL is that, while the growth within the wrapper is tax free, when you withdraw it is considered as earnings distributions first and return of capital last. In other words, opposite of taxable investment. This is incorrect (usually). If the life insurance policy is not a Modified Endowment Contract (MEC), then the withdrawals come from basis first and are tax-free. Gain is then withdrawn, and taxed as ordinary income. Life insurance policies that are MECs are taxed like a deferred annuity, withdrawing from gain first then basis. I am certain that the adviser is proposing a VUL policy that is not a MEC. All that said, I agree with others that the VUL is a terrible investment vehicle. OP, you and your wife should do some readin...
by powermega
Fri Jan 17, 2020 4:13 pm
Forum: Personal Investments
Topic: Incorrect basis in Roth IRA
Replies: 7
Views: 891

Re: Incorrect basis in Roth IRA

Like 123 said above, tax qualified accounts (IRAs, 401ks, etc) do not have a notion of cost basis. Some custodians might keep track of the cost basis and gain/loss in those accounts, but it's really meaningless. There are no taxable events for transactions that occur within one of these accounts.
by powermega
Thu Jan 16, 2020 10:54 am
Forum: Personal Investments
Topic: Target funds and others in my 401k
Replies: 6
Views: 657

Re: Target funds and others in my 401k

Roughly half of our entire portfolio is in one of the Vanguard target date funds (TDF). The TDF is really just a composite fund of 5 other broad market funds. We also invest in those individual component funds as well. Overall, about 85% of our entire portfolio is either in the TDF itself or in the various components of the TDF. We allocate to those component funds with the same allocation that the TDF does. Likewise, both of us put 100% of our 401k contributions into the TDF. The net results is that our entire portfolio mostly models the TDF, with a couple of tilts added (REIT, SCV). The entire portfolio stays reasonably balanced all year, so we only have to tinker with it once a year when we're allocating our new IRA and HSA contributions...
by powermega
Mon Jan 13, 2020 2:13 pm
Forum: Personal Finance (Not Investing)
Topic: Which Tax Software
Replies: 43
Views: 6691

Re: Which Tax Software

I've used TurboTax for years.
by powermega
Fri Jan 10, 2020 12:00 pm
Forum: Personal Finance (Not Investing)
Topic: Traditional PPO vs. HSA/HDHP
Replies: 19
Views: 1030

Re: Traditional PPO vs. HSA/HDHP

Your'e free to copy and edit my PPO vs HDHP/HSA spreadsheet.

The first step is to simply compare the plans by themselves, and you can see where the break even point is between the two. The next step is to get the FSA/HSA portion of the comparison if you're interested. All cells in grey are formula cells that shouldn't be altered. See cell comments for some additional explanation too.

https://docs.google.com/spreadsheets/d/ ... sp=sharing
by powermega
Fri Jan 10, 2020 11:50 am
Forum: Personal Investments
Topic: Where do you keep your Emergency Funds? How is it invested?
Replies: 139
Views: 14296

Re: Where do you keep your Emergency Funds? How is it invested?

We keep our emergency fund in two savings accounts. One account is Discover Bank that earns a decent rate (currently 1.7%), and the bulk of the money is there. We also have a smaller part of the emergency fund at a local credit union that has a local branch open 6 days a week. We have the local account in case we need access to cash on very short notice, and we can make a withdrawal in person at the branch.
by powermega
Wed Jan 08, 2020 6:46 am
Forum: Personal Investments
Topic: Inherited Roth and RMD
Replies: 20
Views: 1657

Re: Inherited Roth and RMD

Alan S. wrote: Tue Jan 07, 2020 8:38 pm Mom wouldn't have an RMD due because this is a Roth IRA.
Thanks for the informative response Alan. Glad to know the OP can get caught up with the IRS that easily. Definitely a brain fart on my part with Mom's RMDs from a Roth IRA,