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 […]
Latest Blog Posts
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 […]
Recharacterize Backdoor Roth
I can’t say I invented the Backdoor Roth but I was an early proponent of it. If you are not familiar with this concept, a Backdoor Roth means contributing to a non-deductible Traditional IRA before converting it to a Roth IRA. Before the move was ever possible for those who earn "too much," I prepared […]
How To Buy I Bonds On a Future Date in TreasuryDirect
It’s time to buy I Bonds! I waited until now because I wanted to earn a little more interest on the money in my checking account at Alliant Credit Union. I Bonds will still pay interest for the full month if you buy on any day during the month. Therefore if your own bank account […]
Saver’s Credit Plays Hard to Get
Are you a saver? I bet you are. Did you know there’s a tax credit called Saver’s Credit that reduces your federal income tax if you save for retirement in an employer sponsored retirement plan (401k, 403b, etc.) or in an IRA? If you knew, did you ever receive it? I bet you didn’t. I […]
Experiment: Buying On A Dip
I said in a previous post in December that I would do a small experiment on my IRA contribution for 2012. See Lump Sum, Dollar Cost Average, Or Wait for Dip? Instead of contributing $5,000 at the first opportunity (January 3 this year because January 2 was a holiday), I would wait for a small […]
Who Use Prepaid Debit Cards
Suze Orman got into some hot water for her exchanges with bloggers on Twitter. Suze Orman launched a prepaid debit card. Bloggers correctly pointed out it’s not good. Suze defended herself by calling a blogger idiot. She later had to apologize. I think bloggers are too worried about the success of Suze Orman’s The Approved […]