Search found 4773 matches

Return to advanced search

Re: Misleading information on tax loss harvesting wiki artic

Couple of nits. I would be careful with using the word "exchange" in the above sentence. Vanguard will convert share classes for one, but that is not the same button to click as when one does an exchange, is it? Well, not quite. A few weeks ago I exchanged into 50K of admiral shares from $...
by Doc
Thu Jul 31, 2014 3:41 pm
 
Forum: Investing - Theory, News & General
Topic: Misleading information on tax loss harvesting wiki article
Replies: 34
Views: 1341

Re: Misleading information on tax loss harvesting wiki artic

The problem here is that there is no IRS rule-making or court decision that defines substantially identical for mutual funds. No one that anyone on this board has ever heard of has been audited and slapped with a tax modification based on the IRS pursuing some particular definition of the words bey...
by Doc
Thu Jul 31, 2014 12:26 pm
 
Forum: Investing - Theory, News & General
Topic: Misleading information on tax loss harvesting wiki article
Replies: 34
Views: 1341

Re: Misleading information on tax loss harvesting wiki artic

There has been no confirmed reporting that two funds from different institutions using the same index are in fact considered to be "substantially identical" securities. There are many well regarded professionals that say no. No two funds have the same exact holdings in each company. The f...
by Doc
Thu Jul 31, 2014 11:19 am
 
Forum: Investing - Theory, News & General
Topic: Misleading information on tax loss harvesting wiki article
Replies: 34
Views: 1341

Re: looking ahead to the next 10-yr TIPS auction

Bill, in the post you reference I wasn't saying that trading systems could not handle two CUSIP codes for bonds with the same maturity and coupon. The point that I was trying to make was that since two nominal bonds with the same maturity and coupon are functionally equivalent, there is no need to ...
by Doc
Wed Jul 30, 2014 10:14 am
 
Forum: Investing - Theory, News & General
Topic: looking ahead to the next 10-yr TIPS auction
Replies: 4
Views: 508

Re: Anyone Switched to Vanguard Account Upgrade?

One of the major complaints about the current Vanguard set up is that you have to wait up to three days for settlement after the sale of a stock or ETF on the brokerage side before you can reinvest the proceeds on the mutual fund side. That means three days in which your money is out of the market....
by Doc
Wed Jul 30, 2014 10:02 am
 
Forum: Investing - Theory, News & General
Topic: Anyone Switched to Vanguard Account Upgrade?
Replies: 20
Views: 2716

Re: Anyone Switched to Vanguard Account Upgrade?

I must be missing something. I don't see what problem they are trying to fix. DW login: None of your accounts can currently be upgraded. Click Where are my other accounts? below or call one of our investment professionals at 888-306-3387 for more information . Doc's Login: Ditto You tell me. One of...
by Doc
Tue Jul 29, 2014 5:57 pm
 
Forum: Investing - Theory, News & General
Topic: Anyone Switched to Vanguard Account Upgrade?
Replies: 20
Views: 2716

Re: Anyone Switched to Vanguard Account Upgrade?

It's not happening. I was invited to switch last year but when I tried I was not eligible. Each time I called (~4 or 5) I was given a different reason why I was not. When I corrected it - still not eligible but a different reason. Basically it is not happening because they have too many IT problems ...
by Doc
Tue Jul 29, 2014 5:07 pm
 
Forum: Investing - Theory, News & General
Topic: Anyone Switched to Vanguard Account Upgrade?
Replies: 20
Views: 2716

Re: Survivor Option on Vanguard Brokered TIPS

IIRC individual bonds purchased from Treasury Direct had/have such an option. At least the paper bonds did. Secondary market bonds held at a broker only have whatever beneficiary designations that are part of the entire account as far as I know.
by Doc
Sun Jul 27, 2014 1:31 pm
 
Forum: Investing - Theory, News & General
Topic: Survivor Option on Vanguard Brokered TIPS
Replies: 1
Views: 250

Re: POLL: Do you own corporate bonds?

From the statistics above up till now, about half of the responding Bogleheads own dedicated corporate bond funds or corporate bonds, and about another 40% own them as part of a total bond fund for a total of 90%. This is surprising because the number pf posters who slam corporate bonds (usually wi...
by Doc
Sun Jul 27, 2014 1:25 pm
 
Forum: Investing - Theory, News & General
Topic: POLL: Do you own corporate bonds?
Replies: 35
Views: 2110

Re: POLL: Do you own corporate bonds?

So far I am only interested in US treasuries for my bond allocation. Of course the other problem is whether to buy them through a mutual fund or individual bonds.. The only difference is the very slightly cost for the fund's e/r. If you buy on the secondary market there is some bookkeeping agro but...
by Doc
Sat Jul 26, 2014 3:14 pm
 
Forum: Investing - Theory, News & General
Topic: POLL: Do you own corporate bonds?
Replies: 35
Views: 2110

Re: ETFs under performing compared to Index admiral shares ?

Friday nights are bad for databases. They conflict with happy hour at TGIF's.
by Doc
Sat Jul 26, 2014 8:45 am
 
Forum: Investing - Theory, News & General
Topic: ETFs under performing compared to Index admiral shares ?
Replies: 6
Views: 683

Re: Blog:Vanguard mutual fund brokerage commission expense

Another index fund advantage ! Sweeping generalities often have more exceptions than the "rule" itself Not all active funds have high turnover. A 1-3 bond index fund has very high turnover. Many active funds on the FI side use derivatives which have very low cost. Tax managed active funds...
by Doc
Sat Jul 26, 2014 8:42 am
 
Forum: Investing - Theory, News & General
Topic: Blog:Vanguard mutual fund brokerage commission expense
Replies: 6
Views: 737

Re: ETFs under performing compared to Index admiral shares ?

Let me reiterate: Dividends. By convention, mutual funds performance and charting almost always shows total return with diistributions reinvested while ETFs performance and charting is almost always done solely on price. For some fun, open 2 browser windows on your computer and go to morningstar.co...
by Doc
Sat Jul 26, 2014 8:25 am
 
Forum: Investing - Theory, News & General
Topic: ETFs under performing compared to Index admiral shares ?
Replies: 6
Views: 683

Re: POLL: Do you own corporate bonds?

I use the BarCap Intermediate (1-10) Index as my bogey not TBM. Because of taxable/tax advantaged limitations some of my FI portfolio has to be in taxable regardless of any other considerations. Therefore splitting up the overall FI portfolio is a necessity. Having separate long/intermediate and Tre...
by Doc
Fri Jul 25, 2014 5:44 pm
 
Forum: Investing - Theory, News & General
Topic: POLL: Do you own corporate bonds?
Replies: 35
Views: 2110

Re: Temptations and Dangers of Higher-Yielding Funds

... Huh? What are you ranting about? Larry Swedrow recently had a post concerning correlation of corporate bonds with equities. M* has a similar take in its article. Where do the egg sucking and dollar bills come into it? I'm, to echo your word, ranting about your OP. If I may quote you quoting Mor...
by Doc
Thu Jul 24, 2014 7:01 pm
 
Forum: Investing - Theory, News & General
Topic: Temptations and Dangers of Higher-Yielding Funds
Replies: 11
Views: 961

Re: The article on tax efficient placement needs to be rewri

Learning_head, I agree with your post. One clarification, Proper comparisons would then look at 1 period, without compounding (because then things will get rebalanced anyway). One of the computational advantages of the "effective" tax rate is that it allows for the 1 period comparison whil...
by Doc
Thu Jul 24, 2014 6:51 pm
 
Forum: Investing - Theory, News & General
Topic: The article on tax efficient placement needs to be rewri
Replies: 75
Views: 4149

Re: Temptations and Dangers of Higher-Yielding Funds

"Income." That's the problem. The concept is the extent of the problem, is the whole problem, and nothing other than it is the problem. Doc, I don't mean to teach my grandmother to suck eggs. No offense, OK? I had a really good relationship with the grandmother I'm thinking about, if that...
by Doc
Thu Jul 24, 2014 6:31 pm
 
Forum: Investing - Theory, News & General
Topic: Temptations and Dangers of Higher-Yielding Funds
Replies: 11
Views: 961

Re: The article on tax efficient placement needs to be rewri

I took a longer look at the Reichenstein paper.

It looks like they used a bond return of 5%. That's not a reasonable assumption in today's fixed income environment.
by Doc
Thu Jul 24, 2014 4:02 pm
 
Forum: Investing - Theory, News & General
Topic: The article on tax efficient placement needs to be rewri
Replies: 75
Views: 4149

Re: The article on tax efficient placement needs to be rewri

If I could just know what tax rate will apply to withdrawals from my tax-deferred account during retirement, I would be able to make appropriate calculations 1) It's about risk between now and the time you withdraw. When you withdraw it your risk is gone. You know with a high degree of certainty ho...
by Doc
Thu Jul 24, 2014 3:37 pm
 
Forum: Investing - Theory, News & General
Topic: The article on tax efficient placement needs to be rewri
Replies: 75
Views: 4149

Re: The article on tax efficient placement needs to be rewri

The people talking about taxes due on a traditional IRA in this discussion are ... misguided. Those taxes will be due regardless of whether you invested in stocks, bonds, or anything else, so from an asset location perspective it doesn't matter. The right way to think about that is effect is to tax...
by Doc
Thu Jul 24, 2014 2:45 pm
 
Forum: Investing - Theory, News & General
Topic: The article on tax efficient placement needs to be rewri
Replies: 75
Views: 4149

Re: The article on tax efficient placement needs to be rewri

After all this discussion, and the thousand of other posts on this can we at least conclude that there isn't a one size fits all solution?? A lot of factors go into it: expected returns, if your 401k pre-tax or Roth, current tax brackets, future taxes and tax rates, type of bonds, early retirement,...
by Doc
Thu Jul 24, 2014 9:26 am
 
Forum: Investing - Theory, News & General
Topic: The article on tax efficient placement needs to be rewri
Replies: 75
Views: 4149

Re: The article on tax efficient placement needs to be rewri

This isn't a valid example, though, since you're merely comparing an all stock to an all bond portfolio. No, you are trading $1 in bonds in tax advantage to/from taxable and switching $1 in stocks in the opposite direction. (If your tax advantaged account is a traditional IRA/401k you need to adjus...
by Doc
Thu Jul 24, 2014 9:04 am
 
Forum: Investing - Theory, News & General
Topic: The article on tax efficient placement needs to be rewri
Replies: 75
Views: 4149

Re: The article on tax efficient placement needs to be rewri

maybe - can you walk me through the 'extra 30-50 bps/yr with no additional risk' part? Assume: 1) 25% Tax on Treasuries and ~10% effective (15% statutory) tax rate on equities. (The actual equity tax bracket and length of investment determine the effective tax bracket for equities. It varies a lot ...
by Doc
Wed Jul 23, 2014 1:27 pm
 
Forum: Investing - Theory, News & General
Topic: The article on tax efficient placement needs to be rewri
Replies: 75
Views: 4149

Re: The article on tax efficient placement needs to be rewri

Really this comes down to what one considers to be "normal" interest rates. If rates now are "abnormally low" and are sure to go back up to 7 or 8% any day now, then bonds should go in tax advantaged. If sub-3% rates are the "new normal", then the old rules are wrong. ...
by Doc
Wed Jul 23, 2014 12:40 pm
 
Forum: Investing - Theory, News & General
Topic: The article on tax efficient placement needs to be rewri
Replies: 75
Views: 4149

Re: The article on tax efficient placement needs to be rewri

The entire article is written with the implicit assumption that it's better to hold bonds in a tax-advantaged space because of how the gains are taxed. Only a small section is provided with criticism of this idea, but without any supporting math. The article states that the most tax efficient asset...
by Doc
Wed Jul 23, 2014 12:04 pm
 
Forum: Investing - Theory, News & General
Topic: The article on tax efficient placement needs to be rewri
Replies: 75
Views: 4149

Re: Temptations and Dangers of Higher-Yielding Funds

Perhaps, but wrt the asset backed -- if it is spray-painted sub-prime credit card debt, the ratings may be meaningless. Not a big deal but I was just a bit surprised. OK you made me look. I didn't add it up but a lot of the asset backed is Ford and GE floorplan and autos. I would think that section...
by Doc
Wed Jul 23, 2014 11:47 am
 
Forum: Investing - Theory, News & General
Topic: Temptations and Dangers of Higher-Yielding Funds
Replies: 11
Views: 961

Re: Temptations and Dangers of Higher-Yielding Funds

I was looking at the portfolio holdings of Short Term Investment Grade yesterday and noticed that asset-backed was 10% and foreign was 10%. It got me wondering if Vanguard was reaching a little for yield in this fund. Without delving too deeply into the portfolio I would guess that the securitized ...
by Doc
Wed Jul 23, 2014 11:17 am
 
Forum: Investing - Theory, News & General
Topic: Temptations and Dangers of Higher-Yielding Funds
Replies: 11
Views: 961

Temptations and Dangers of Higher-Yielding Funds

There have been several topics recently about taking more credit risk to make up for the currently low bond yields. I found this recent Morningstar article sheds some light on the subject from the viewpoint of correlation with equities. This is a point that Larry Swedore has always made. This articl...
by Doc
Wed Jul 23, 2014 10:48 am
 
Forum: Investing - Theory, News & General
Topic: Temptations and Dangers of Higher-Yielding Funds
Replies: 11
Views: 961

Re: New 10-Year TIPS Auction July 24 2014

# Cruncher, Doc, Nisi and all you other smart people. Why are the TIPS rates so low. Is the thought of inflation causing them to go up or are they just going up because the ten year yield is going down? It has little to do with inflation rates. Inflation rates have been relatively stable over the p...
by Doc
Tue Jul 22, 2014 5:48 pm
 
Forum: Investing - Theory, News & General
Topic: New 10-Year TIPS Auction July 24 2014
Replies: 17
Views: 1619

Re: Do you "Tax Adjust" your Asset Allocation (Pre vs Roth,

The stylized example of all stocks in one account and all bonds in the other is an unlikely extreme. Similarly, stock volatility will provide rebalancing opportunities in both directions, keeping things in balance. ... I've read Reichenstein on taxes ... 1) The stylized example is an illustration. ...
by Doc
Tue Jul 22, 2014 4:43 pm
 
Forum: Investing - Theory, News & General
Topic: Do you "Tax Adjust" your Asset Allocation (Pre vs Roth, etc)
Replies: 77
Views: 3687

Re: New 10-Year TIPS Auction July 24 2014

grok87 wrote:i think 0.22% is a good guess. on bloomberg the WI market is showing 0.23/0.235

Damn. I thought interest rate were supposed to increase.

Image
by Doc
Tue Jul 22, 2014 4:26 pm
 
Forum: Investing - Theory, News & General
Topic: New 10-Year TIPS Auction July 24 2014
Replies: 17
Views: 1619

Re: Do you "Tax Adjust" your Asset Allocation (Pre vs Roth,

I vote for 50/50 because since both are sheltered accounts and hence you can freely exchanges assets between fixed income and stocks within them to maintain 50/50. However, the total value of the portfolio should be reduced by taxes due. You should educate yourself on the differences between a Roth...
by Doc
Tue Jul 22, 2014 4:02 pm
 
Forum: Investing - Theory, News & General
Topic: Do you "Tax Adjust" your Asset Allocation (Pre vs Roth, etc)
Replies: 77
Views: 3687

Re: New 10-Year TIPS Auction July 24 2014

Some of my old TIPS just matured and I am going to roll about half of them over. My order is in at Vanguard. I can't think of anything better to do, it's sorta kinda my plan, and I'm more or less sticking to it. My life expectancy is around 20 years at this point. I don't like the rates on the 10-y...
by Doc
Tue Jul 22, 2014 1:19 pm
 
Forum: Investing - Theory, News & General
Topic: New 10-Year TIPS Auction July 24 2014
Replies: 17
Views: 1619

Re: Do you "Tax Adjust" your Asset Allocation (Pre vs Roth,

I vote for 50/50 because since both are sheltered accounts and hence you can freely exchanges assets between fixed income and stocks within them to maintain 50/50. However, the total value of the portfolio should be reduced by taxes due. You should educate yourself on the differences between a Roth...
by Doc
Tue Jul 22, 2014 1:15 pm
 
Forum: Investing - Theory, News & General
Topic: Do you "Tax Adjust" your Asset Allocation (Pre vs Roth, etc)
Replies: 77
Views: 3687

Re: Do you "Tax Adjust" your Asset Allocation (Pre vs Roth,

There is no reason to take taxes into account when you are talking about AA. The risk is determined by the AA and the AA is unaffected by what will eventually become of some portion of the assets. Let's try this though process. Suppose you and I form a 50/50 partnership to invest in a super safe go...
by Doc
Mon Jul 21, 2014 7:59 pm
 
Forum: Investing - Theory, News & General
Topic: Do you "Tax Adjust" your Asset Allocation (Pre vs Roth, etc)
Replies: 77
Views: 3687

Re: Do you "Tax Adjust" your Asset Allocation (Pre vs Roth,

Now it does make sense to account for taxes in judging how much you will need in order to eventually produce the cash flow you need. I agree with this statement but its irrelevant. The AA in the Modern Portfolio Theory or CAPM is about risk not the amount of money you will have some time in the fut...
by Doc
Mon Jul 21, 2014 3:39 pm
 
Forum: Investing - Theory, News & General
Topic: Do you "Tax Adjust" your Asset Allocation (Pre vs Roth, etc)
Replies: 77
Views: 3687

Re: Do you "Tax Adjust" your Asset Allocation (Pre vs Roth,

When I think about tax adjusting, not only do I need to know my own tax rate in the future, I need to know what my kids' tax rates will be when I die. I don't think future tax rates are that important. If you are tax adjusting to keep your risk constant by maintaining a desired AA you are concerned...
by Doc
Mon Jul 21, 2014 12:19 pm
 
Forum: Investing - Theory, News & General
Topic: Do you "Tax Adjust" your Asset Allocation (Pre vs Roth, etc)
Replies: 77
Views: 3687

Re: Do you "Tax Adjust" your Asset Allocation (Pre vs Roth,

Not at all because I just include an estimate of future tax in the required income stream so I no more adjust my accounts for that than I do for housing expenses. Asset allocation is not about an income stream it is about the risk in your portfolio. That's why firms like Vanguard have a number of T...
by Doc
Mon Jul 21, 2014 11:04 am
 
Forum: Investing - Theory, News & General
Topic: Do you "Tax Adjust" your Asset Allocation (Pre vs Roth, etc)
Replies: 77
Views: 3687

Re: Do you "Tax Adjust" your Asset Allocation (Pre vs Roth,

But you also have to tax-adjust taxable account holdings if you follow this approach, so the difference may not be as large with just tax-deferred and taxable accounts (i.e., no Roths). I think that Roth and any other truly tax-free accounts are the only accounts that don't warrant any tax adjustme...
by Doc
Sun Jul 20, 2014 6:12 pm
 
Forum: Investing - Theory, News & General
Topic: Do you "Tax Adjust" your Asset Allocation (Pre vs Roth, etc)
Replies: 77
Views: 3687

Re: [Poll] % of 3 funds in your financial asset portfolio?

I don't consider "cash" to be either part of, or a departure from, the 3-fund portfolio, and I consider short-term bond index, short-term inflation-protected bond index, and I bonds as "cash." I would reverse this to consider cash as either short term bond index or any other sho...
by Doc
Sat Jul 19, 2014 9:54 am
 
Forum: Investing - Theory, News & General
Topic: [Poll] % of 3 funds in your financial asset portfolio?
Replies: 31
Views: 1692

Re: [Poll] How often do you re-balance?

Just alter your DCA so that the new contributions go into your bond fund. A typical response for a number of posters most likely the youngster's among us. Two comments: 1) Adding new contributions to an underweight asset class is balancing not re-balancing. 2) As one gets older and has a larger por...
by Doc
Mon Jul 14, 2014 5:07 pm
 
Forum: Investing - Theory, News & General
Topic: [Poll] How often do you re-balance?
Replies: 25
Views: 2218

Re: In a crash, will you re-balance to maintain your target

acegolfer wrote:"In a crash, will you re-balance to maintain your target AA?"

Fortunately, nobody answered "yes" or "no" without explanation.

Yes

noyopacific wrote:Yes, adding to equities in 11/2008 was difficult !

And it was very easy.
by Doc
Mon Jul 14, 2014 9:42 am
 
Forum: Investing - Theory, News & General
Topic: In a crash, will you re-balance to maintain your target AA?
Replies: 64
Views: 4170

Re: Tax Efficiency of Treasuries

Need to forget about the ROTH/Traditional IRA "dilemma". That is a separate issue involving future tax rates and contribution limit differences between the two accounts. Just consider the ROTH which has no tax and get your answer quickly. Settle the tIRA/ROTH debate again in another thread...
by Doc
Fri Jul 11, 2014 3:26 pm
 
Forum: Investing - Theory, News & General
Topic: Tax Efficiency of Treasuries
Replies: 19
Views: 1613

Re: Undestanding the Vanguard Total Bond Market fund (VBMFX)

nisiprius wrote:I don't think the bond market is 100X larger than the stock market.


Daily volume maybe?
by Doc
Thu Jul 10, 2014 2:01 pm
 
Forum: Investing - Theory, News & General
Topic: Undestanding the Vanguard Total Bond Market fund (VBMFX)
Replies: 21
Views: 4012

Re: The Risk of Short-term Bond Funds

...The high yield environment leading up to the S&L crisis was a lot more of a struggle for us old fogies. :P It is interesting that the "real" yield isn't so bad compared to some times in the past, in 1980 inflation was about 13% with 10yr Treasuries yielding around 10% In 2013 infla...
by Doc
Mon Jul 07, 2014 10:26 am
 
Forum: Investing - Theory, News & General
Topic: The Risk of Short-term Bond Funds
Replies: 152
Views: 10462

Re: The Risk of Short-term Bond Funds

Call_Me_Op wrote:We are all struggling with what to do in this ultra-low yield environment.


Hi young'n,

The high yield environment leading up to the S&L crisis was a lot more of a struggle for us old fogies. :P
by Doc
Sun Jul 06, 2014 3:09 pm
 
Forum: Investing - Theory, News & General
Topic: The Risk of Short-term Bond Funds
Replies: 152
Views: 10462

Re: Does corporate credit risk add value

If the subject portfolio has a long term focus (no monetary need for 5 years) does the risk showing up at the wrong time cause any problem beyond a behavioral one (i.e. you will sell when the portfolio is down despite the fact that you will not need the money for 5 years)? Therefore, one can obtain...
by Doc
Sat Jul 05, 2014 12:54 pm
 
Forum: Investing - Theory, News & General
Topic: Does corporate credit risk add value
Replies: 71
Views: 4204

Re: Does corporate credit risk add value

Therefore, one could get lucky and select a strategy that makes more than the overall market, but that means that someone else has to select another strategy that makes less than the market. You're completely missing the point of the article. Larry is looking at the effect of credit risk on the ent...
by Doc
Fri Jul 04, 2014 7:07 pm
 
Forum: Investing - Theory, News & General
Topic: Does corporate credit risk add value
Replies: 71
Views: 4204

Re: [Poll] If all active funds have ER= 0.05%, will you buy

Nisi,

Do you "fret" about your index fund management changing its index every few years?
by Doc
Fri Jul 04, 2014 5:06 pm
 
Forum: Investing - Theory, News & General
Topic: [Poll] If all active funds have ER= 0.05%, will you buy any?
Replies: 55
Views: 2665

Re: [Poll] If all active funds have ER= 0.05%, will you buy

I know that "index" does not mean "low cost." They are different words. How about "low cost" does not mean "index". They are different words. :happy ... to be sure that no manager ever touched my money :idea: That's a completely different criteria. One which ...
by Doc
Thu Jul 03, 2014 6:35 pm
 
Forum: Investing - Theory, News & General
Topic: [Poll] If all active funds have ER= 0.05%, will you buy any?
Replies: 55
Views: 2665
Next

Return to advanced search