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Fun Times! posted:My wife has a mutual fund she inherited from her grandma that's managed by a local firm. Is there a way to transfer it into her Vanguard account? It's split across 3 funds and we're trying to consolidate while eliminating fees. Would she have to cash it out and pay tax before reinvesting? You can probably move it into her Vanguard account, and there's a good chance you won't need to pay taxes. If you can do an "in-kind transfer," you just move your investments directly from one broker to another. This isn't a taxable event, because you're not selling anything. To do that, Vanguard has to offer whatever funds you're moving over - one simple way to check that is to see if you can buy the funds in question through Vanguard's FundAccess program (or, just call Vanguard). Vanguard will eventually start charging you fees for buying and selling other companies' funds, but you get something like 12 free transactions per year, and it doesn't cost anything to just hold them. There aren't any fees for moving assets into Vanguard, although the old broker might charge you. You can kick off the process by going to the Vanguard site, going to Investing-Account Transfers, and hitting the big red "Start your Transfer" button. You'll probably need to print off and sign a few forms, and you might need a medallion guarantee. If you can't do an in-kind transfer, or if you want to actually change your investments around so that your money is in Vanguard's funds, you'll need to liquidate, transfer the cash, and reinvest. You will need to pay taxes on that, since it's a sale.
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Jan 23, 2021 22:34
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SpelledBackwards posted:This bears repeating since it can be especially confusing at first. Roth and 401k are orthogonal concepts. You can have traditional and Roth IRAs, and you can have traditional and Roth 401ks. Traditional vs. Roth pivots on tax treatment, while IRA vs. 401k pivots on account type and who's offering/controlling it. Good call out, as it's full-mesh-complicated because it's the USA and we can't just have nice things. Traditional IRA, Roth IRA, Traditional 401k, Roth 401k, After-Tax 401k, Rollover IRA (Which is just a Traditional IRA but they say to just put in money rolled over from other qualified accounts), SIMPLE IRA are all things people can or will encounter working normal jobs. Get into public service or academics and suddenly you toss in 403(b), and 457 plans, and I seem to recall there is a subtle way that one of those can be at risk of employer theft, but not all of those plans are, good luck. On top of this there are pension plans, some of which are great, some of which you basically just pray they never decide to rob blind. If you're wondering which forms to expect check your brokerage "tax information" page - Fidelity at least says "Your forms will be available on <date>".
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Jan 23, 2021 22:36
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Space Gopher posted:You can probably move it into her Vanguard account, and there's a good chance you won't need to pay taxes. Thanks!
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Jan 23, 2021 22:51
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TraderStav posted:I went heavy into SSO in 09, it paid off but was stupid as hell. why do you think it was stupid?
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Jan 24, 2021 06:17
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fart simpson posted:why do you think it was stupid? The position alone wasn't. It was way too much risk for me and too much of my account at the time in it. Mistakes were made.
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Jan 24, 2021 07:12
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TraderStav posted:The position alone wasn't. It was way too much risk for me and too much of my account at the time in it. You're saying the end doesn't justify the means, but at the time in 2009 your analysis felt like it was the correct move to make right
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Jan 24, 2021 07:17
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TraderStav posted:The position alone wasn't. It was way too much risk for me and too much of my account at the time in it. you could have done a lot worse than just holding sso since 2009. for example, you could have held spy
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Jan 24, 2021 08:16
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fart simpson posted:you could have done a lot worse than just holding sso since 2009. for example, you could have held spy You could have also done a lot better, for example you could have gone to a roulette table and picked some really good numbers. Thinking about "risk" instead of pure sweet winnings is for chumps.
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Jan 24, 2021 08:23
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obi_ant posted:I usually get tax forums for savings accounts if they’ve made over $10 for the year. The other thing to be aware of is that the investment tax forms tend to come out later than the bank tax forms. We have most of our 1099-INT already but none of our 1099-B or 1099-DIV.
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Jan 24, 2021 14:52
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My wife has an inherited IRA (IRA - BDA). It's from before the 10 year distribution limit law came into affect. If we were to convert it to a ROTH IRA, doesn't it have any consequences other than the tax hit from the conversion? Can you convert a IRA - BDA?
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Jan 24, 2021 15:23
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Okay, since this is my first time stepping out of just ploughing everything into a target fund, I just want a few people to check my math and thinking: Investment ratios (based off 'Boglehead lazy 4 core fund portfolio'): 51% Total domestic stock 34% Total international stock 10% Total bond 05% Total REIT My 401k and HSA are still 100% in Target Fund as there aren't good options available for building a portfolio in these accounts. Vanguard Roth IRA is holding the REIT and a total bond fund that I need to even everything out, 50% is still in a Target fund, I could at this point disperse this into total stock funds if I want to. Post tax brokerage account is 60/40 pure total domestic stock/total intnl stock vanguard funds. I'll probably plan on rebalancing %'s quarterly. Does the above seem reasonable to others taking a similar path? fenixwb fucked around with this message at 16:12 on Jan 24, 2021 |
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Jan 24, 2021 16:01
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zaurg posted:You're saying the end doesn't justify the means, but at the time in 2009 your analysis felt like it was the correct move to make right fart simpson posted:you could have done a lot worse than just holding sso since 2009. for example, you could have held spy No doubt, it was the correct call to make. My logic was that we were going to have a sharp recovery, so why not double that up, which worked. However, it was mismatched with what I should have been doing from a risk management / tolerance / financial planning aspect. That’s all I’m saying. Sorry if that wasn’t clear.
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Jan 24, 2021 16:30
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MrLogan posted:My wife has an inherited IRA (IRA - BDA). It's from before the 10 year distribution limit law came into affect. If we were to convert it to a ROTH IRA, doesn't it have any consequences other than the tax hit from the conversion? Non-spousal inherited IRAs aren't eligible for conversion.
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Jan 24, 2021 16:49
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fenixwb posted:Okay, since this is my first time stepping out of just ploughing everything into a target fund, I just want a few people to check my math and thinking: I am 0% reit and for now 0% bond but yes its similar. Do you have room in your balancing (taking all accounts combined, remember to lookup the % allocation to your 4 buckets in your target date fund) to go 100% international in the taxable account? You can potentially capture foreign taxes paid on your USA return.
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Jan 24, 2021 17:32
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jfff posted:Non-spousal inherited IRAs aren't eligible for conversion. Well, poop. Does her having it mess up any backdoor ROTH IRA conversions in the future?
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Jan 24, 2021 18:08
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MrLogan posted:Well, poop. I can't imagine that it would, but you may want to check with a tax or investment advisor. All that your spouse can do is withdraw from the Inherited IRA. Since they're not converting any of the RMD from the inherited IRA, there's nothing to report on an 8606 in regards to those distributions. Therefore it shouldn't mess with any other conversions.
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Jan 24, 2021 18:18
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MrLogan posted:Well, poop.
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Jan 24, 2021 18:25
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H110Hawk posted:I am 0% reit and for now 0% bond but yes its similar. Do you have room in your balancing (taking all accounts combined, remember to lookup the % allocation to your 4 buckets in your target date fund) to go 100% international in the taxable account? You can potentially capture foreign taxes paid on your USA return. Unfortunately, no, 75% of all savings is in the Fidelity 401k and that plan has a total international and total bond, but no total stock (or any equivalent), I applied for access to a Fidelity "BrokerageLink account" within the 401k which I'm hoping may give me access to what I need to disperse the Target Fund into individual Funds. And yes, my total allocation takes into account the internal allocation of the Target Funds.
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Jan 24, 2021 18:28
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fenixwb posted:Unfortunately, no, 75% of all savings is in the Fidelity 401k and that plan has a total international and total bond, but no total stock (or any equivalent), I applied for access to a Fidelity "BrokerageLink account" within the 401k which I'm hoping may give me access to what I need to disperse the Target Fund into individual Funds. I assume you have an s&p 500? That's what I use for my 401k and lump it into the total market column. Either way, as long as you're breaking it out that's fine. It's a common oversight or exclusion. (We also only have the overpriced non-index target date funds, so it's total international or s&p 500. I do the latter and have my taxable as like 95% international.)
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Jan 24, 2021 19:39
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I have some money invested in the Vanguard total bond market fund in a taxable account. Can't really remember why in a taxable account or what I was thinking, this was a few years ago. Anyways, what information do I need to calculate whether or not I should sell the bond fund and replace it with more tax-efficient funds in the brokerage account? Or is the answer "just do it"?
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Jan 24, 2021 23:15
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stranger danger posted:I have some money invested in the Vanguard total bond market fund in a taxable account. Can't really remember why in a taxable account or what I was thinking, this was a few years ago. Just do it.
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Jan 24, 2021 23:19
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stranger danger posted:I have some money invested in the Vanguard total bond market fund in a taxable account. Can't really remember why in a taxable account or what I was thinking, this was a few years ago. At the moment, Vanguard's total bond funds have a lower distribution yield than its total stock market does in dividend yield. This was discussed several pages back, but right now tax efficient placement is "complicated". You might want to check out the tax-exempt municipal bond funds such as the VTEB ETF, though.
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Jan 24, 2021 23:35
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smackfu posted:The other thing to be aware of is that the investment tax forms tend to come out later than the bank tax forms. We have most of our 1099-INT already but none of our 1099-B or 1099-DIV. Vanguards come out Tuesday... not really that late. (my work W2 isn't until Feb 1). I got most my INT ones last week.
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Jan 25, 2021 05:49
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Space Gopher posted:You could have also done a lot better, for example you could have gone to a roulette table and picked some really good numbers. Thinking about "risk" instead of pure sweet winnings is for chumps. yeah well sso or upro or whatever aren’t roulette. it’s not independent risk compared to spy, they’re derivatives and most of their risk derives from the s&p 500. i don’t think there’s ever been a 12 year period where you would have been worse off buying into something like upro rather than spy even if these funds had existed forever. thinking of that the same way as roulette is nuts. it’s not even on the same level as picking stocks, your still buying in to a broad market index fund
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Jan 25, 2021 13:50
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fart simpson posted:yeah well sso or upro or whatever aren’t roulette. it’s not independent risk compared to spy, they’re derivatives and most of their risk derives from the s&p 500. i don’t think there’s ever been a 12 year period where you would have been worse off buying into something like upro rather than spy even if these funds had existed forever. thinking of that the same way as roulette is nuts. it’s not even on the same level as picking stocks, your still buying in to a broad market index fund If UPRO had existed for the 2008 crash, it would almost certainly have been wiped out and shut down. Then you wouldn't be seeing any of the 2009-and-later recovery. UPRO looks great because it started at the end of a nasty downturn, hitched itself to the recovery, and we haven't had any really bad periods for stock indexes since then. A major index losing 33% over a relatively short period (a few days to a few months) is a real bad time, but it has happened and almost certainly will happen again a few times in our lives. If you're in a conventional index fund, you hang on and hope for a recovery, because you're not going to see every asset you're invested in go all the way to zero. If you're leveraged 3x, 33.3% losses in your underlying index turn into 100% losses* for you, and all those sweet future returns start multiplying by zero. Game over. The roulette analogy is a deliberately ridiculous way to point out that "look at these great returns" without thinking about the risks involved is a dumb thing to do. *as noted before, not exactly but close enough - the ≈50% drop in the S&P 500 over the course of 2008 would still put a stake through the heart of a fund trying to provide 3x the daily movement of the index
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Jan 25, 2021 16:30
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Space Gopher posted:If UPRO had existed for the 2008 crash, it would almost certainly have been wiped out and shut down. Then you wouldn't be seeing any of the 2009-and-later recovery. UPRO looks great because it started at the end of a nasty downturn, hitched itself to the recovery, and we haven't had any really bad periods for stock indexes since then. This is wrong. Because UPRO resets daily it actually does less bad than 3x on a crash unless you manage to crash 33.4% in a single day, which the circuit breakers prevent. You get thrashed if the S&P swings up and down dramatically like it did during March, but if it’s a steady fall, you fall less fast than a pure 3x. The table on page 6 here explains more clearly. https://www.proshares.com/media/prospectus/upro_summary_prospectus.pdf?param=1611589797023
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Jan 25, 2021 16:53
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Is an HSA just unequivocally the best way to save against medical expenses in retirement?
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Jan 25, 2021 17:12
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surc posted:Is an HSA just unequivocally the best way to save against medical expenses in retirement? If you and your family are healthy and high deductible medical insurance is ok for you, then yes, HSA is a no brainer.
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Jan 25, 2021 17:18
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Yeah you can spend it on medical stuff, or on hookers and blow after age 65 (and paying taxes if not spent on medical stuff). Don't use it to buy random consumables though if you can afford those out of pocket, better to let it grow tax-free for as long as possible.
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Jan 25, 2021 17:20
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Space Gopher posted:If UPRO had existed for the 2008 crash, it would almost certainly have been wiped out and shut down. Then you wouldn't be seeing any of the 2009-and-later recovery. UPRO looks great because it started at the end of a nasty downturn, hitched itself to the recovery, and we haven't had any really bad periods for stock indexes since then. volatility decay saves you in this scenario. it has been calculated that upro would have lost about 85% in 2008 if it existed volatility decay means you outperform the underlying index when it moves either up or down, and you underperform when the underlying index moves laterally fart simpson fucked around with this message at 17:28 on Jan 25, 2021 |
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Jan 25, 2021 17:26
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fart simpson posted:yeah well sso or upro or whatever aren’t roulette. it’s not independent risk compared to spy, they’re derivatives and most of their risk derives from the s&p 500. i don’t think there’s ever been a 12 year period where you would have been worse off buying into something like upro rather than spy even if these funds had existed forever. thinking of that the same way as roulette is nuts. it’s not even on the same level as picking stocks, your still buying in to a broad market index fund I mean in 2000 SPY was climbing towards ~$140 and in 2012 it was climbing back up to ~$140. The math is a bit more complicated than just "3x everything" but I would be willing to bet that 12 year period of sideways trading (with some big ups and downs in it) would have sucked for UPRO
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Jan 26, 2021 16:12
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finally got around to funding my IRA this year so you're welcome in advance for the upcoming correction
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Jan 26, 2021 17:32
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I've been asked (by the trustee distributing the funds) to help out a sibling that recently received a sizeable inheritance of a few hundred k. She has not done any investment before and is onboard with my helping and giving advice. She is mid 20s, no retirement savings yet, makes in the mid 30k a year. No debt, budget is balanced except for the no savings part (does have a decent emergency fund), no bad habits I know about. She is also a 1099 worker, so no employer plan. Does not have any need/desire to spend any of this money. Also her career is in the arts so she may not ever make a much bigger income. My thought was she could fund an IRA and a solo 401k using the inheritance money to replace her earned income and keep transferring in every year until it's all in tax advantaged accounts. This would take ~15 years though, so I'm wondering what's the best thing to do with the balance while it's waiting to transfer over. Index fund in a taxable investment account? Are target date funds less ideal in taxable accounts, so maybe just a total market us/international split? Thoughts? The Vikings fucked around with this message at 20:05 on Jan 26, 2021 |
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Jan 26, 2021 19:59
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The Vikings posted:I've been asked (by the trustee distributing the funds) to help out a sibling that recently received a sizeable inheritance of a few hundred k. She has not done any investment before and is onboard with my helping and giving advice. She is mid 20s, no retirement savings yet, makes in the mid 30k a year. No debt, budget is balanced except for the no savings part (does have a decent emergency fund), no bad habits I know about. She is also a 1099 worker, so no employer plan. Does not have any need/desire to spend any of this money. Also her career is in the arts so she may not ever make a much bigger income. Yeah target date in a taxable fund is going to produce tons of drag. What is her goal with the money? Preservation, income, growth?
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Jan 26, 2021 20:13
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The Vikings posted:I've been asked (by the trustee distributing the funds) to help out a sibling that recently received a sizeable inheritance of a few hundred k. She has not done any investment before and is onboard with my helping and giving advice. She is mid 20s, no retirement savings yet, makes in the mid 30k a year. No debt, budget is balanced except for the no savings part (does have a decent emergency fund), no bad habits I know about. She is also a 1099 worker, so no employer plan. Does not have any need/desire to spend any of this money. Also her career is in the arts so she may not ever make a much bigger income. She would also be the most likely person to benefit from roth tax treatment. This is also the sort of money that could set her up to buy a house if that's a thing that she is interested in? Have you sat her down to ask her what her long term goals are? School, house, travel, etc? She will likely not have this kind of lump sum to leverage for the next 10-20 years. Now is the time.
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Jan 26, 2021 20:29
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I have access to a GUL cash accumulation fund thanks to life insurance provided by my employer. I've been treating it as just a fun money fund - sock away like $40 per paycheck. It accumulates at 4%. Should I treat this thing as just another savings account, a la one with higher interest and taxable withdrawals?
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Jan 26, 2021 20:58
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I have an old IRA with around $50k in FSKAX that thus far has prevented me from making backdoor Roth contributions. The available investment options in my 401k are not all that great, but I assume it would still be recommended to roll it over just to enable those backdoor contributions every year? Also, for a taxable account to invest in the standard recommended index funds, I'm considering Vanguard (likely where I'd open said Roth IRA, wife's is already there), Schwab (already have an unused account in order to open checking there), and Merrill Edge (for that high cash back BoA card). Any considerations to help me decide between the three? Thanks. runawayturtles fucked around with this message at 00:24 on Jan 27, 2021 |
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Jan 27, 2021 00:20
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Eldred posted:Yeah target date in a taxable fund is going to produce tons of drag. What is her goal with the money? Preservation, income, growth? As for my sister: H110Hawk posted:She would also be the most likely person to benefit from roth tax treatment. She hasn't through much about money or investing, so I'm trying to toe the line between helping her educate herself and giving reasonable advice, and avoid telling her what to do. I've seen her budget, and there's not much to cut and still live in Manhattan, which she wants to continue doing (rent is close to 50% even with roommates). The inheritance is 'supposed' to be for saving/investing/retirement. While it will be under her control, she doesn't want to spend any right now and is receptive to using this money as a start on retirement savings which she doesn't have and may not in the (near) future either. Like I said above, she is breaking even on a budget with basically no savings, but does have enough earned income she could max out or come close to it on an IRA and 401k (I was thinking RIRA and traditional 401k), and I would hate to see these years of contribution space not used. I did ask her about long-term plans, and she wants to find a position make enough money in an arts career to fully support herself (including savings/retirement) and be able to travel, do fun things, etc., without the variability of the 1099 work she's doing now. So either lucking out in her own work or working for someone else. I will specifically ask again about the house but I don't think she's interested in that until her career settles into something.
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Jan 27, 2021 08:11
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The Vikings posted:I'd prefer not to try balancing bonds in retirement vs stocks in taxable Just for the record, this activity might take you up to one hour per year in analysis and execution, max. It's fine if you decide to have more equities exposure, but that shouldn't be a decision born from laziness.
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Jan 27, 2021 11:53
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hello vanguard, i would like one vtsax minus gamestop asap, tia
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Jan 27, 2021 17:09
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