Reader Vicki left this comment on my previous post 529 Plans: Age-Based Options Don’t Make Sense: “I was just about to enroll in an age based plan here but pulled up your page before I signed on the dotted line. Help!! I just want this over with. I thought I had looked at all options […]
Latest Blog Posts
Unvested RSUs As Golden Handcuffs: What To Do?
As I mentioned in last Friday’s post, I had interviews for a new job. The interviews went very well. They liked me; I liked the company and the job. After the interviews, the hiring manager gave a verbal go-ahead. Now I’m handed off to HR to talk about the compensation package. This turned out to […]
How To Recharacterize An IRA with Vanguard, Fidelity, Or Schwab
As I mentioned in my previous post Recharacterize Backdoor Roth, I requested recharacterization of my Roth IRA conversions in 2011 and 2012. Since this is the first time I did this, I’m documenting the process here. Why Recharacterize? Recharacterizing an IRA can mean two things: recharacterizing contributions OR recharacterizing a conversion (from Traditional to Roth) […]
Best Investment Options With Fidelity BrokerageLink
401k plans are slowly getting better. My plan added a low-cost collective trust. My wife’s plan added a self-directed brokerage account, also known as a brokerage window. Her plan is managed by Fidelity. Fidelity calls it BrokerageLink. Some 401k plans managed by Charles Schwab also have this feature. Schwab calls it PCRA — Personal Choice […]
Most TSP Participants Should Switch To the Roth TSP
My friend Austin asked me about the Roth TSP. TSP is Thrift Savings Plan. It’s the equivalent to a 401k plan for federal government employees and members of the military. Until now, TSP only accepts pre-tax contributions, like a Traditional 401k. TSP announced that it will add the Roth feature soon. I heard April 1, […]
What Did You Do When the Market Was Down?
Do you remember those days last summer when the Dow went down 400 points one day, then it went up 400 points the next day, before it went down another 400 points the following day? I saved in my notebook this excellent post on the Bogleheads forum by the remarkable poster nisiprius: A time to […]
Fake TurboTax Discount Through Vanguard and Fidelity
If you buy an expensive product at a discount, is it still a discount? What if you can buy the same product at pretty much the same price everywhere else without a coupon or a special link? Is it still a discount? I’m talking about the “discounted” TurboTax offered through financial institutions like Vanguard or […]
Collective Trust vs Mutual Fund: What’s the Difference?
My 401k plan recently added a new investment option. It’s a collective trust from BlackRock — BlackRock EAFE Equity Index Collective Trust. It invests in stocks in developed countries, tracking the MSCI EAFE index. What Is a Collective Trust? A collective trust is like a mutual fund but it only sells to institutional investors like […]
Tax Refunds On 1099-G: Taxable Or Not?
Among the various tax forms I have been receiving lately is a 1099-G from my state. It says it’s for the state income tax refund I received last year. I received a state income tax refund last year because I had too much withheld in the previous year. The refund was returning my own money […]
When Will Your Index Fund Buy Facebook Stock?
Facebook will have an IPO soon. If you invest through mutual funds, will those mutual funds buy Facebook stock after the IPO? If so, when will they buy it? People ask this question because either they worry their mutual funds will buy into a bubble and pay a price too high or they worry their […]