Search found 85599 matches

by livesoft
Mon Mar 04, 2024 2:51 pm
Forum: Investing - Theory, News & General
Topic: What good is tax deferred?
Replies: 122
Views: 15670

Re: What good is tax deferred?

smitcat wrote: Mon Mar 04, 2024 1:27 pm"During decumulation live off of return of capital which is not taxed."
Really depends on if the numbers are below the limits.
Suppose I put $10 million into a checking account earning 0.00% interest, then I could withdraw $250K over the next 40 years and not even file a tax return.

(I did not do this,)

I don't have expensive tastes. After all, I sleep in a tent for quit a few weeks/months every year.
by livesoft
Mon Mar 04, 2024 1:23 pm
Forum: Investing - Theory, News & General
Topic: What good is tax deferred?
Replies: 122
Views: 15670

Re: What good is tax deferred?

During accumulation our tax bracket was as high as 33%. During decumulation we haven't gotten above 12%. 33% - 12% = 21%. Put that in your pipe and smoke it. I really need to understand how you did it. What was your asset allocation like in during accumulation - in the tax deferred accounts? And did you contribute at the maximum allowable limits? What's to understand? See this post from 2011: https://www.bogleheads.org/forum/viewtopic.php?t=79510 During accumulation: 2 income family with income below $250K could be 33% marginal back in 2016 I think. Maybe higher earlier. Generally, had equities in taxable and almost never bonds. Tax-deferred had everything. Roths not invented or not allowed. Always contributed the maximum limits and then e...
by livesoft
Mon Mar 04, 2024 10:08 am
Forum: Personal Investments
Topic: How big (if at all) of a mistake would it be for me to go VT instead of VTI/VXUS in taxable?
Replies: 67
Views: 5710

Re: Strongly regretting my decision to separate into VTI/VXUS in taxable account instead of VT, unsure how to best proce

VartAndelay wrote: Mon Mar 04, 2024 10:03 am[...]
Now I know people might say I'm making a big deal out of nothing and that the exact percentages don't really matter as long as it's close enough. But this is not really a satisfactory response to me.
[...]
This whole thing looks like a medical question then because it is all between your two ears.

Also I don't think there is any suggestion that anybody can give for what ails you.
by livesoft
Mon Mar 04, 2024 6:42 am
Forum: Personal Investments
Topic: Good or bad time to invest in S&P 500 for Roth IRA?
Replies: 30
Views: 4022

Re: Good or bad time to invest in S&P 500 for Roth IRA?

Those funds are fine and easily changed if you change your mind. What else you got? 401(k)? 403(b)? TSP? Spouse?

Also since you are older than 50, you are allowed to contribute up to $8,000 if you and/or your spouse has at least $8,000 of compensation leftover from making 401(k) and 403(b) contributions.
by livesoft
Sun Mar 03, 2024 10:29 pm
Forum: Investing - Theory, News & General
Topic: 2023 tax costs for value ETFs
Replies: 19
Views: 2537

Re: 2023 tax costs for value ETFs

Though VTI has 95% qualified dividends for 2023 the rest are Section 199A dividends which get a tax break, too.
by livesoft
Sun Mar 03, 2024 5:55 pm
Forum: Personal Consumer Issues
Topic: Pet accidents: hardwood vs tile vs luxury vinyl plank
Replies: 41
Views: 2762

Re: Pet accidents: hardwood vs tile vs luxury vinyl plank

Hardwood and vinyl will get scratched by dog claws. Just sayin'
by livesoft
Sun Mar 03, 2024 5:51 pm
Forum: Personal Finance (Not Investing)
Topic: Automatic extension for tax filing if estimated taxes paid
Replies: 10
Views: 1011

Re: Automatic extension for tax filing if estimated taxes paid

I would and actually do) use IRS Direct Pay and file for an extension separately from all estimated taxes. Since Direct Pay needs one to make a payment with the extension to file, I just pay $1. My checking account activity shows the $1 sent to the IRS, so I know I have filed for an extension.

That does not answer your question of "not need to", but I think it is better to do what I do because there is no ambiguity whatsover.

Image

One doesn't have to fill out Form 4868 either and it is free.
by livesoft
Sun Mar 03, 2024 9:12 am
Forum: Personal Investments
Topic: Investing Strategy/Money Management Advice?
Replies: 14
Views: 1472

Re: Investing Strategy/Money Management Advice?

A single ETF like VTI? You are already doing that with VOO, SPY, and QQQ. :). Those are all like VTI. You would have more diversification with VTI than with what you got, so fear of diversification with VTI is misplaced.
by livesoft
Sun Mar 03, 2024 8:57 am
Forum: Investing - Theory, News & General
Topic: Retirees apparently tend to maintain assets - lessons for BH investors?
Replies: 129
Views: 17368

Re: Retirees apparently tend to maintain assets - lessons for BH investors?

White Coat Investor wrote: Sun Mar 03, 2024 8:54 am It's charity.
And charity is discretionary, so one can turn it off any year that one needs the money for something else.
by livesoft
Sun Mar 03, 2024 7:23 am
Forum: Personal Investments
Topic: Selling underperforming funds for tax loss harvesting
Replies: 27
Views: 1655

Re: Selling underperforming funds for tax loss harvesting

rkhusky wrote: Sun Mar 03, 2024 7:20 am [...] There are no options for saving the losses, other than not realizing capital gains.
But there are no options for losing the losses either -- except perhaps dying.
by livesoft
Sun Mar 03, 2024 7:00 am
Forum: Personal Investments
Topic: Age 70s, retired, $360k, switching frOM UBS to Fidelity.
Replies: 22
Views: 2156

Re: Age 70s, retired, $360k, switching frOM UBS to Fidelity.

Just read this thread. It looks to me like posting at Bogleheads.org made you an easy $5K to $6K this year and all years in the future.
by livesoft
Sun Mar 03, 2024 6:48 am
Forum: Personal Finance (Not Investing)
Topic: Maximizing Tax Savings Efforts
Replies: 9
Views: 919

Re: Maximizing Tax Savings Efforts

Health care using a high-deductible health plan and then contribute to a Health Savings Account (HSA) by payroll deduction?

I would also suggest trying to do your own tax return preparation and save the money that you pay your accountant.

Emergency fund might be done this way: https://www.bogleheads.org/wiki/Placing ... ed_account
Basically, if you look at your Form 1040 Schedule B, you should have very little income on the top half of the Schedule B where interest is reported. In essence your inherited IRA is your emergency fund.

Pay off any debts.
by livesoft
Sun Mar 03, 2024 5:30 am
Forum: Personal Investments
Topic: Investing Strategy/Money Management Advice?
Replies: 14
Views: 1472

Re: Investing Strategy/Money Management Advice?

Hello. I have been following this forum and sub-reddit for some time, and now kindly requesting a review of my first deliberate investment strategy. [...] Any general ideas/tips based on what you see above would be appreciated. Thank you again to everyone here for what you all do. I've never seen anyone recommend a bunch of individual stocks on this forum. Sure, a lot of young people try it out, but then they occassionally post on bogleheads.org on how to get out of those stocks and simplify. Sell all your individual stocks (are there almost 50 of them?!) and invest in passively-managed, broad market, index funds. If you look at the portfolio composition of a US Total Stock Market Index fund such as VTI, then you will find it already has s...
by livesoft
Sun Mar 03, 2024 5:21 am
Forum: Personal Consumer Issues
Topic: Best way to pay for a car in cash with Schwab
Replies: 20
Views: 1643

Re: Best way to pay for a car in cash with Schwab

I have just written a check after putting the most I could on a cash-back credit card. I wonder though if the OP even has bought physical checks for their Schwab checking account.
by livesoft
Sun Mar 03, 2024 4:40 am
Forum: Personal Investments
Topic: How to Get Roth IRA Out of Wells Fargo Advisors
Replies: 19
Views: 1998

Re: How to Get Roth IRA Out of Wells Fargo Advisors

You could also inquire as to whether you can convert your Wells Fargo Advisors Roth IRA to a Wells Fargo Advisors WellsTrade Roth IRA. That might be a little bit less of a hassle (not sure about that, of course) and a WFA WellsTrade account will give you access to a wide range of low-cost securities that you can manage yourself. This might be true, but the OP may not have enough assets to get everything for free at WellsFargo and WellsTrade. Both Fidelity and Schwab have free checking and investing, but no walk-in banking. I wonder where the OP has their checking account and online bill pay. WellsFargo is not a bad place for those as long as it is free. Full disclosure: We have been WellsTrade and WellsFargo customers for a long time (almo...
by livesoft
Sat Mar 02, 2024 8:18 pm
Forum: Personal Investments
Topic: Selling underperforming funds for tax loss harvesting
Replies: 27
Views: 1655

Re: Selling underperforming funds for tax loss harvesting

Sell all your losers in a tax-loss harvesting move. You don't have to sell them all in the same hour, but they should all be sold next week.

This will help you to get out of the Behavioral Finance Trap of Loss Aversion. And if what you end of buying loses money, then sell it as well.
by livesoft
Sat Mar 02, 2024 7:08 pm
Forum: Personal Consumer Issues
Topic: Electric mower for mulching
Replies: 30
Views: 2463

Re: Electric mower for mulching

I found the OP funny because my neighbor has been borrowing my Toro gas-powered mower because his electric mower is kaput.
by livesoft
Sat Mar 02, 2024 7:05 pm
Forum: Personal Investments
Topic: Market Timing = Always Bad?
Replies: 35
Views: 4203

Re: Market Timing = Always Bad?

Anyhow, here is my question: If the stocks go up to a high enough percent, should I cash out another years worth at that time to add another CD ladder rung? For my situation, that would be about 5% further stock increase. And the market is on a current upswing. You can rebalance to your heart's content when stocks go up a high enough percent. You don't have to buy another years worth to add to your CD ladder rung because you can still sell equities and buy fixed income. Example: Your 60/40 becomes 61/39. In that case you can sell equities and invest in a money market fund, a bond fund, CDs, or something non-equity. You can also take some bond fund money and buy a CD whenever you want. And don't forget that if stocks go down, then you will ...
by livesoft
Sat Mar 02, 2024 6:58 pm
Forum: Personal Consumer Issues
Topic: Getting new car
Replies: 53
Views: 6453

Re: Getting new car

Buy car now and drive it to Colorado?
by livesoft
Sat Mar 02, 2024 2:42 pm
Forum: Investing - Theory, News & General
Topic: Why is 60/40 the benchmark?
Replies: 25
Views: 3464

Re: Why is 60/40 the benchmark?

I've come to believe that 60/40 gives more rebalancing opportunities when using trigger points than does 50/50, but I haven't done any historical testing. Also maybe it is because stock returns are about 1.5 times bond fund returns, thus 60% is about 1.5 times 40%? Maybe 60/40 gave some nice historical return over decades in the past?

Anyways, I like 60/40. I also like it because there are many 60/40 mutual funds that can be used at benchmarks without having to do any calculations.
by livesoft
Sat Mar 02, 2024 10:40 am
Forum: Personal Investments
Topic: Are people's interest payment exceeding their X?
Replies: 17
Views: 1732

Re: Are people's interest payment exceeding their X?

Not happening. We avoid getting interest in our taxable accounts (and indeed in all our accounts). Our 1099-INT show we were paid $19 in interest for all of 2023 which is about double the amount of 2022. We prefer to get qualified dividends if we must get income because we don't pay tax on those.
by livesoft
Sat Mar 02, 2024 10:34 am
Forum: Personal Investments
Topic: Deep Dive: Poor Tax Efficiency of Vanguard International Funds 2023
Replies: 41
Views: 6252

Re: Deep Dive: Poor Tax Efficiency of Vanguard International Funds 2023

This is an excellent post. As someone who has a large position in VXUS, would it make sense to slice and dice international and keep the EM funds in tax deferred and developed in taxable? I'm a believer in diversifying with international, but I don't like the idea of paying more taxes than necessary. Years ago before VXUS existed I split international so that VSS was in tax-advantaged and VEA was in taxable. Also ended up with some VEU in taxable. Now as we spend down our taxable portfolio the only international left in taxable is VEU and that is what we sell to pay expenses since it has the least unrealized capital gains (and thus the most tax-free return-of-capital) of all our taxable holdings. Eventually, all the VEU will be "used ...
by livesoft
Sat Mar 02, 2024 9:11 am
Forum: Personal Investments
Topic: A New Grad’s Factor-Based Portfolio Review
Replies: 21
Views: 1971

Re: A New Grad’s Factor-Based Portfolio Review

Some times you just gotta do what you gotta do. Give this a few years and come back and tell us what happened please.
by livesoft
Sat Mar 02, 2024 9:09 am
Forum: Investing - Theory, News & General
Topic: What are you up YTD? [Year To Date]
Replies: 5250
Views: 906835

Re: What are you up YTD? [Year To Date]

ruralavalon wrote: Sat Mar 02, 2024 8:47 amI take 1/12 of my annual Required Minimum Distribution (RMD) automatically paid each month directly to my bank checking account. That plus my monthly Social Security benefit (also automatically deposited in my bank checking account) more than covers my retirement spending needs/wants.
So since this "more than covers", I suppose you take the excess at the end of the year and reinvest it? Give it away? Spend it?
by livesoft
Sat Mar 02, 2024 8:36 am
Forum: Personal Investments
Topic: Merill Lynch Self-Directed Brokerage - Recommendations
Replies: 12
Views: 919

Re: Merill Lynch Self-Directed Brokerage - Recommendations

I'd manually invest. It is not hard and one does not have to be disciplined. You somehow figure out how to pay monthly bills, don't you? This would be no different.
Nevermind now that you tell us that you have low-expense ratio passively-manage index funds available. Just use those.

If you like, then every once in a while you can sell your mutual funds and buy ETFs.
by livesoft
Sat Mar 02, 2024 4:26 am
Forum: Personal Investments
Topic: Nice problem to have
Replies: 6
Views: 1487

Re: Nice problem to have

AlaskaTeach wrote: Sat Mar 02, 2024 2:41 amThe coolest thing was the other day when the market went up big in one day, my investments went up more in that day than my monthly salary as recently as 2019. Crazy!
Quick! Buy a new truck with that.

Wait -- what do you do call it when your investments go down more in a day than your yearly salary?
by livesoft
Fri Mar 01, 2024 8:47 pm
Forum: Personal Investments
Topic: Selling Stocks, including enough for taxation without getting into a taxation loop
Replies: 13
Views: 1339

Re: Selling Stocks, including enough for taxation without getting into a taxation loop

Since the IRS lets a taxpayer round to the nearest dollar or zero, just withdraw 99 cents at a time. The gain is 49 cents which rounds to zero and thus no taxes are owed. Do this two hundred thousand times and it's all tax-free! :)
by livesoft
Fri Mar 01, 2024 7:40 pm
Forum: Investing - Theory, News & General
Topic: The recent surge: stand pat or "sell high?"
Replies: 54
Views: 6563

Re: The recent surge: stand pat or "sell high?"

Walkure wrote: Fri Mar 01, 2024 5:26 pmYep, ironic that a forum that eschews market timing filled a legendary 30 pages of thread debating $5,000 wristwatches:
But one needs a great wristwatch to time the market!
by livesoft
Fri Mar 01, 2024 4:13 pm
Forum: Personal Investments
Topic: Deep Dive: Poor Tax Efficiency of Vanguard International Funds 2023
Replies: 41
Views: 6252

Re: Deep Dive: Poor Tax Efficiency of Vanguard International Funds 2023

The USA has some geographic advantages that other countries do not. This has consequences which are immediately evident from all the wars around the world.

Furthermore, the USA sucks profits and money out of other countries. While a few countries in the past have gotten money out of the US (Arab oil embargo leading to rising petroleum prices), I think the reality is that US is a tech leader and all other countries use tech conceived and designed in the USA even if made elsewhere. And nowadays, the USA is also a leading energy producer. https://www.energy.gov/eere/vehicles/ar ... t-exporter
by livesoft
Fri Mar 01, 2024 4:07 pm
Forum: Investing - Theory, News & General
Topic: Previously taxed reinvested Dividends reduce Capital
Replies: 14
Views: 1234

Re: Previously taxed reinvested Dividends reduce Capital

Return of capital is not taxed. Dividends are taxed. What you do with them is your decision. It has always been this way. If one follows the tax laws, then there is no ambiguity about this. Presumably, tax preparers follow the tax laws.
by livesoft
Fri Mar 01, 2024 2:57 pm
Forum: Personal Consumer Issues
Topic: Bird watchers – what birds are you seeing?
Replies: 2857
Views: 230278

Re: Bird watchers – what birds are you seeing?

Black vultures. Lots of black vultures. The photo only shows about a third of them as the others are just out of frame.

Image

Feel free to give the vultures names: Edward, Jones, Fisher, American, Express, Northwestern, ....
by livesoft
Fri Mar 01, 2024 8:46 am
Forum: Personal Finance (Not Investing)
Topic: Real Stories of College Savings: what was your plan, and what happened?
Replies: 98
Views: 7599

Re: Real Stories of College Savings: what was your plan, and what happened?

Sounds like you will be early retired when your kids are in college with overfunded 529 plans. I like it.

My "Tale of two 529 plans" from 2012 will probably not be helpful to you: viewtopic.php?t=107916


See also: viewtopic.php?t=179156
by livesoft
Fri Mar 01, 2024 8:39 am
Forum: Personal Finance (Not Investing)
Topic: Roth conversion 60-day rule
Replies: 23
Views: 1721

Re: Roth conversion 60-day rule

I see no real reason to do this. Instead, carryover the withdrawn cash to the next tax year and do a regular Roth conversion instead of withdrawing for spending. There is nothing special about the end of the year is there?

But your situation is a reason that we just do "just in time" withdrawals from our portfolio. We do not have regularly scheduled nor automated withdrawals. I suggest you stop doing those and withdraw only as needed.
by livesoft
Fri Mar 01, 2024 8:24 am
Forum: Personal Investments
Topic: Portfolio Review Request: Majority Taxable
Replies: 19
Views: 2284

Re: Portfolio Review Request: Majority Taxable

I would simplify away all the smaller positions by donating them to a Donor-Advised Fund (DAF) I imagine that at 52X expenses that you are philanthropically inclined and probably already use a DAF as a conduit for your charitable giving, but if you do not have a DAF, then please get one.

I do not see any reasons why you cannot get your portfolio down to 3 or 4 ticker symbols in taxable and 1 single ticker symbol in all the tax-advantaged accounts. You have already done this in your tax-deferred accounts.

You will end up holding bonds in both taxable and tax-deferred accounts, but probably not in Roth accounts.
by livesoft
Fri Mar 01, 2024 8:08 am
Forum: Personal Finance (Not Investing)
Topic: Is there a way to avoid tIRA interest during backdoor roth, should I care?
Replies: 6
Views: 695

Re: Is there a way to avoid tIRA interest during backdoor roth, should I care?

You should not care.

If I put $7,000 in a nondeuctible IRA and the next day it had already grown to $15,000, then I would still convert it all to a Roth IRA. It would be like the IRS raised the limit of an IRA contribution to $15,000 and I would really like that a lot.

And if that $15,000 earned some interest, then I would convert, then convert, then convert until the account was down to zero. If this is too much complexity, then maybe you shouldn't even be investing at all. There is still only one (1) Form 8606 to fill out anyways.
by livesoft
Fri Mar 01, 2024 7:38 am
Forum: Personal Investments
Topic: Vanguard Investment Question
Replies: 14
Views: 1712

Re: Vanguard Investment Question

There seems to be quite a misunderstanding of what the Vanguard sweep account actually is by the client mentioned in the OP. Also the so-called Brokerage Platform has replaced the old Mutual Fund Platform for most folks and even probably the client mentioned in the OP. If one has ever been to a modern grocery store, then one may have noticed self checkouts. Vanguard is now self checkout. I don't shop there anymore, but I do maintain an account so that I can see personally what others might be experiencing and then comment. Perhaps another example of the same thing is the "pump your own gas" for those that still need gasoline. For someone who lives in a locale where an attendant fills your tank and then drives to a place where you ...
by livesoft
Fri Mar 01, 2024 7:29 am
Forum: Personal Consumer Issues
Topic: Safe to Travel to Egypt in 2024?
Replies: 17
Views: 2262

Re: Safe to Travel to Egypt in 2024?

It is safe right now and was safe when my spouse went to Egypt and Jordan in 2023.

But what does safe mean to you? It only takes one event to change everyone's mind, so there is always always always a risk traveling no matter where you go.
by livesoft
Fri Mar 01, 2024 7:26 am
Forum: Investing - Theory, News & General
Topic: The recent surge: stand pat or "sell high?"
Replies: 54
Views: 6563

Re: The recent surge: stand pat or "sell high?"

Vanguard Total US Bond Market Index is down -1.61% YTD. It is possible that it surges even lower, right? Nevertheless, it might be something to buy.

Just remember: Markets go down on both bad news and no news. It's only good news that makes markets go up. Right now everyone (except a small corner filled with conspiracy theorists) is reporting that the economy is doing great.
by livesoft
Fri Mar 01, 2024 7:14 am
Forum: Personal Investments
Topic: Deep Dive: Poor Tax Efficiency of Vanguard International Funds 2023
Replies: 41
Views: 6252

Re: Deep Dive: Poor Tax Efficiency of Vanguard International Funds 2023

Finridge wrote: Fri Mar 01, 2024 2:10 amMaybe this is a topic for another thread, but I wonder what is causing the poor performance of International?
I think it boils down to mainly: International countries are not the United States of America.
by livesoft
Thu Feb 29, 2024 7:32 pm
Forum: Personal Consumer Issues
Topic: Cloud based backup options for sensitive files
Replies: 93
Views: 7923

Re: Cloud based backup options for sensitive files

I do not knowingly put any files in the cloud that I would not share with the world.
by livesoft
Thu Feb 29, 2024 7:04 pm
Forum: Personal Finance (Not Investing)
Topic: 2024 - Trading Question.. Trying to enter mkt with no luck
Replies: 6
Views: 641

Re: 2024 - Trading Question.. Trying to enter mkt with no luck

I submitted a number of market orders. I bought some shares of VTI earlier this week. Otherwise, there were those RBDs back at the beginning of February that were good buying opportunities. I just used market order to buy back then as well.
by livesoft
Thu Feb 29, 2024 6:24 pm
Forum: Investing - Theory, News & General
Topic: What are you up YTD? [Year To Date]
Replies: 5250
Views: 906835

Re: What are you up YTD? [Year To Date]

YTD (29 February 2024) returns of a few 60/40 funds for your viewing and benchmarking pleasure. 2.07% VSMGX Vanguard LifeStrategy Moderate Growth fund, has US + International 3.36% VBIAX Vanguard Balanced Index fund, has US only and no international 2.68% DGSIX DFA Global Allocation 60/40 I fund, a small-cap and value tilted 60/40 asset allocation 1.76% SWBGX Schwab MarketTrack Balanced 60/40, a balanced fund of index funds 2.22% AOR iShares Core Growth Allocation ETF 60/40 The performance of a 60/40 portfolio continues to vary by quite a bit depending on how the 60/40 is constituted. Also note: -0.81% AVUV Avantis US Small Cap Value ETF 16.14% MTUM iShares MSCI USA Momentum Factor ETF 6.58% VTSAX Vanguard Total US Stock Market 1.22% VTIAX ...
by livesoft
Thu Feb 29, 2024 5:56 pm
Forum: Personal Investments
Topic: Do dividend reinsvestments mess up TLH?
Replies: 15
Views: 1552

Re: Do dividend reinsvestments mess up TLH?

nps wrote: Thu Feb 29, 2024 5:42 pm Upcoming TLH event in VTI - does the OP even have a loss?
Don't know, but the shares bought most recently such as with the upcoming dividend might a few days later have a loss. :twisted:
by livesoft
Thu Feb 29, 2024 5:54 pm
Forum: Personal Investments
Topic: Fidelity 500 Index Fund (FXAIX) vs. Schwab S&P 500 Index (SWPPX) vs. VOO vs. Vanguard 500 Index Fund Adm Shares (VFIAX)
Replies: 20
Views: 3275

Re: Fidelity 500 Index Fund (FXAIX) vs. Schwab S&P 500 Index (SWPPX) vs. VOO vs. Vanguard 500 Index Fund Adm Shares (VFI

Claudia Whitten wrote: Thu Feb 29, 2024 3:54 pmOne would expect the fund with the lowest expense ratio to perform better, right?
Sorry, but that's not what I would expect from a bunch of S&P500 index funds. There can be other things going on.
by livesoft
Thu Feb 29, 2024 5:05 pm
Forum: Personal Investments
Topic: Do dividend reinsvestments mess up TLH?
Replies: 15
Views: 1552

Re: Do dividend reinsvestments mess up TLH?

I'm trying to understand here.... If you buy, then sell the same lot a day later you don't have a wash sale because you were selling the same share that you just bought. What happens if you buy 100 shares of VTI today in your IRA, then tomorrow sell 100 shares of VTI out of your taxable account for a lot. That would be a wash sale because while you still bought and sold the same number of shares, they weren't the SAME share s. Is that right? Right. This also means that dividend reinvestment in a taxable account that creates a wash sale is easily "cleared" simply by selling the shares bought with dividend reinvestment anytime. Of course, dividend reinvestment in a Roth IRA or traditional IRA that causes a wash sale cannot be clear...
by livesoft
Thu Feb 29, 2024 4:51 pm
Forum: Personal Investments
Topic: Do dividend reinsvestments mess up TLH?
Replies: 15
Views: 1552

Re: Do dividend reinsvestments mess up TLH?

You can't buy/sell the same or a substantially identical fund +/-31 days if you sold in taxable for a loss. This statement is not quite true as has been discussed and shown to be false at bogleheads.org many times. Example: On February 29, 2024 I buy 100 shares of VTI at $252.58, then on March 1, 2024 I sell 100 shares of VTI for $251.00 (i.e. at a loss) specifically identifying those shares bought the day before. This is NOT a wash sale. This is despite selling shares for a loss purchased less than 31 day ago. Another example was documented in this post https://www.bogleheads.org/forum/viewtopic.php?p=7505983#p7505983 This detail messes up a lot of people and a lot of people writing about wash sales on the internet, too. The IRS is not me...
by livesoft
Thu Feb 29, 2024 3:40 pm
Forum: Personal Consumer Issues
Topic: Sending foreign currency (Chinese Yuan) intra-US?
Replies: 14
Views: 1607

Re: Sending foreign currency (Chinese Yuan) intra-US?

I did some work in Beijing and was paid in yuan cash. I didn't want nor need the cash, so I bought some clothing and exchanged the rest into US dollars inside a ginormous Bank of China. Otherwise I did not need any yuan cash in China at all

Banks send cash by overnight courier (Fedex, UPS) all the time and make you sign for the receipt of the envelope, but that might cost the equivalent of 150 yuan. You would only be slightly better off than if the yuan was lost.
by livesoft
Thu Feb 29, 2024 3:05 pm
Forum: Personal Finance (Not Investing)
Topic: 1099-DIV income taxed at 85%?
Replies: 11
Views: 2044

Re: 1099-DIV income taxed at 85%?

I cannot be sure what is going on, but you probably hit one of those tax cliffs that everybody writes about. These are often caused by loss of tax credits for income going over a limit.

See, e.g., viewtopic.php?t=295815

One hint I can say is: "Please read your Form 1040!" That is, don't talk about TurboTax.
by livesoft
Thu Feb 29, 2024 2:37 pm
Forum: Investing - Theory, News & General
Topic: Investing fear
Replies: 30
Views: 2942

Re: Investing fear

broadstone wrote: Thu Feb 29, 2024 2:32 pm Recently, my mother passed, and I was left mid five figure inheritance. I know I need to invest this money into VTI, but I am deathly afraid of investing right now.

I know this question has been asked before, however, since the markets are so high at the moment, would you suggest investing over a period of time or in one go?
Here you go:The Final, Definitive Thread on Dollar-Cost Averaging
by livesoft
Thu Feb 29, 2024 1:27 pm
Forum: Personal Investments
Topic: Where to park cash for short term: T-bills or Treasury EFTs?
Replies: 4
Views: 615

Re: Where to park cash for short term: T-bills or Treasury EFTs?

If I was going to use the money for my asset allocation and rebalancing on an RBD, then I would just use a Treasury ETF because I can instantly sell Treasury ETF shares and buy whatever stock ETF(s) had the RBD and get back to my asset allocation. At the present time I just use BND for my fixed income allocation for the same purpose.