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by Electron
Fri May 29, 2015 2:42 pm
Forum: Investing - Help with Personal Investments
Topic: RMUCX
Replies: 6
Views: 253

Re: RMUCX

I reinvested all income distributions from 2007 through today, the current amount is still -23% of what I paid. It's possible that the Morningstar chart is based on incorrect data. I assume that you are multiplying your current reinvested share balance by the current NAV and have not made any withd...
by Electron
Fri May 29, 2015 1:29 pm
Forum: Investing - Help with Personal Investments
Topic: RMUCX
Replies: 6
Views: 253

Re: RMUCX

The Morningstar chart is showing the growth of $10K which assumes reinvestment of all income distributions.

You need to think in terms of total return rather than just the NAV of the fund.
by Electron
Thu May 28, 2015 1:07 pm
Forum: Investing - Help with Personal Investments
Topic: Explaining Vanguard GNMA Admiral over past month
Replies: 11
Views: 1118

Re: Explaining Vanguard GNMA Admiral over past month

Here is some information on Mortgage Dollar Roll Activity. It is also explained in the latest Vanguard U.S. Government Bond Funds Annual Report on page 81. http://en.wikipedia.org/wiki/Dollar_roll One thought is that Vanguard GNMA is managed for both income and total return. It looks as though Mortg...
by Electron
Wed May 27, 2015 10:52 pm
Forum: Investing - Theory, News & General
Topic: Wellington & Wellesley
Replies: 32
Views: 3674

Re: Wellington & Wellesley

Wellington and Wellesley would be more appropriate for tax sheltered accounts in most cases. Mutual funds with higher tax efficiency might be a better choice in taxable accounts depending on the investor's tax bracket. Both funds have excellent records which suggests skill in the active management d...
by Electron
Tue May 26, 2015 5:59 pm
Forum: Investing - Help with Personal Investments
Topic: Explaining Vanguard GNMA Admiral over past month
Replies: 11
Views: 1118

Re: Explaining Vanguard GNMA Admiral over past month

SEC Yield often varies more than you would expect as discussed below. I tend to look at the monthly dividend payout in dollars per share adjusted for any capital gains and also the distribution yield. The monthly dividend also varies based on the number of days in the month. Active management in the...
by Electron
Mon May 25, 2015 2:32 pm
Forum: Investing - Help with Personal Investments
Topic: Tax efficient way to unwind a dividend growth portfolio?
Replies: 5
Views: 710

Re: Tax efficient way to unwind a dividend growth portfolio?

Treating the dividend paying stock portfolio as an index fund does sound like an attractive possibility. It might be worth seeing if all major S&P 500 sectors are represented with a reasonable percentage in each. Here is a site showing the nine basic sectors within the S&P 500. You could als...
by Electron
Mon May 25, 2015 2:05 pm
Forum: Investing - Theory, News & General
Topic: another look at dividend paying stocks and valuations
Replies: 63
Views: 4440

Re: another look at dividend paying stocks and valuations

The Fall 2014 issue of the T. Rowe Price Report had some comments along the same lines as this topic. The manager of the Global Stock Fund wrote "I am 100% sure that we are in a yield-chasing bubble right now — just like with the tech and housing bubbles". See the article on Global Investi...
by Electron
Sun May 24, 2015 1:59 pm
Forum: Investing - Theory, News & General
Topic: Bill Gross Thinks the End Is Near
Replies: 54
Views: 6851

Re: Bill Gross Thinks the End Is Near

The Fall 2014 issue of the T. Rowe Price Report had an interesting article relating to this topic. The manager of the Global Stock fund said he is "100% sure that we are in a yield-chasing bubble right now". That is not surprising considering the extremely low interest rate policy that has...
by Electron
Sun May 24, 2015 1:00 pm
Forum: Investing - Help with Personal Investments
Topic: Tax efficient way to unwind a dividend growth portfolio?
Replies: 5
Views: 710

Re: Tax efficient way to unwind a dividend growth portfolio?

I would first look at the magnitude of the net long term gain available this year and see if the applicable capital gains tax rate is 15%. Be aware that the new 3.8% Medicare Investment tax applies after a certain threshold. Also determine if the gain could trigger the Alternative Minimum Tax. Lastl...
by Electron
Sat May 23, 2015 3:21 pm
Forum: Investing - Help with Personal Investments
Topic: Why not just consistently buy index futures as a long-term strategy?
Replies: 9
Views: 918

Re: Why not just consistently buy index futures as a long-term strategy?

If earlier data is available, model your strategy in a spreadsheet and see how it looks. Alternatively, paper trade the strategy starting now and compare with alternatives. You might think about 2008 and how you might have reacted to a major decline. I still remember when John Templeton appeared on ...
by Electron
Fri May 22, 2015 11:56 pm
Forum: Investing - Theory, News & General
Topic: Bill Gross Thinks the End Is Near
Replies: 54
Views: 6851

Re: Bill Gross Thinks the End Is Near

Many forecasting models including those presented in John Bogle's "Common Sense on Mutual Funds" project lower stock and bond returns for the decade ahead. Key parameters include current low bond yields, current stock dividend yields, corporate earnings growth, and PE ratios. We have also ...
by Electron
Thu May 21, 2015 2:18 pm
Forum: Personal Finance (Not Investing)
Topic: Basic Financial Advice for College Student with Inheritance
Replies: 22
Views: 2169

Re: Basic Financial Advice for College Student with Inheritance

Their main objective is capital growth. The secondary consideration is the relative tax efficiency of VFIAX and VTSMX with a view towards minimizing annual dividends and capital gain distributions during the life of this investment. Is there enough of a difference between annual dividends from VFIA...
by Electron
Wed May 20, 2015 12:40 pm
Forum: Personal Consumer Issues
Topic: Huge Problem With First Home
Replies: 28
Views: 4839

Re: Huge Problem With First Home

It might be worth checking the termite inspection report to see what type of termite was identified. Termites working up the back side of a wall and eating paper may be the subterranean type and not drywood termites. An Internet search on Termites Eat Paper turns up a lot of information. One site me...
by Electron
Sun May 17, 2015 12:28 pm
Forum: Personal Consumer Issues
Topic: Huge Problem With First Home
Replies: 28
Views: 4839

Re: Huge Problem With First Home

Arizona appears to have four main species of termites.

http://www.termite.com/termites/termites-arizona.html

The treatment varies quite a bit depending on the type.
by Electron
Mon May 11, 2015 2:46 pm
Forum: Investing - Theory, News & General
Topic: Stop contributions to retirement accts due to future RMDs
Replies: 77
Views: 5434

Re: Stop contributions to retirement accts due to future RMDs

If at the age of about 50 or whenever, and you have calculated that you can have more than enough to live on from other than retirement accounts, would you stop contributing to retirement accounts and just invest the money in taxable accounts? One way to answer that question is to model the various...
by Electron
Sat May 09, 2015 1:09 pm
Forum: Investing - Theory, News & General
Topic: Stop contributions to retirement accts due to future RMDs
Replies: 77
Views: 5434

Re: Stop contributions to retirement accts due to future RMDs

I'll add a few points. 1. Don't forget about the tax savings when money was put into a Traditional 401K or Deductible IRA. Assuming that the tax savings was invested, that was essentially free money and will help pay the taxes on the way out. 2. If someone has more assets than needed, they can use s...
by Electron
Fri May 08, 2015 12:46 pm
Forum: Investing - Help with Personal Investments
Topic: Capital Gains on individual stock?
Replies: 13
Views: 1441

Re: Capital Gains on individual stock?

I agree that shares of CSCO purchased on 5-07-99 would now be at a small profit. The 16 year compounded return would be quite low. The Google link that I provided does show the correct split adjusted price which was $27.125 on that date. However, if you had purchased CSCO later in 1999 the stock ros...
by Electron
Tue May 05, 2015 1:38 pm
Forum: Investing - Help with Personal Investments
Topic: Capital Gains on individual stock?
Replies: 13
Views: 1441

Re: Capital Gains on individual stock?

CSCO was briefly the most valuable company in the world in 1999. Google finance shows share price around 80 in 1999 vs 29 today. The chart on Google Finance shows the full history including stock splits. The chart price is adjusted for splits, so the actual price in 1999 was higher than the adjuste...
by Electron
Mon May 04, 2015 11:05 pm
Forum: Investing - Help with Personal Investments
Topic: Capital Gains on individual stock?
Replies: 13
Views: 1441

Re: Capital Gains on individual stock?

It looks as though CSCO is down significantly relative to prices in 1999.

On the Morningstar chart below, change the time scale to "Max".

http://quotes.morningstar.com/chart/sto ... ture=en_US
by Electron
Mon May 04, 2015 2:35 pm
Forum: Investing - Help with Personal Investments
Topic: Capital Gains :(
Replies: 10
Views: 1460

Re: Capital Gains :(

If you have complete records on your taxable funds it should be easy to generate the cost basis yourself. In case of any future IRS audit, I maintain my own cost basis and do not rely on mutual fund or brokerage firms. You will need previous brokerage statements and related paperwork. In addition, p...
by Electron
Sun May 03, 2015 6:01 pm
Forum: Investing - Help with Personal Investments
Topic: Capital Gains :(
Replies: 10
Views: 1460

Re: Capital Gains :(

I would start by examining my latest tax return. If you have any empty space in the 15% tax bracket that would qualify for the 0% capital gains tax rate. It would also be a good idea to write an Investment Policy Statement. See the Wiki under IPS. If you decide to sell several of your mutual funds y...
by Electron
Fri May 01, 2015 3:57 pm
Forum: Investing - Help with Personal Investments
Topic: AAPL
Replies: 226
Views: 50171

Re: AAPL

I was convinced before, but AAPL has really ingrained the fact that markets are quite irrational short term, in fact very irrational. I saw little reason for AAPL to have tanked after earnings, be down another 3 points yesterday, but even more-so today, why is it now back up 3 points? In absence of...
by Electron
Mon Apr 20, 2015 2:07 pm
Forum: Personal Consumer Issues
Topic: Overinflating Tires
Replies: 31
Views: 2872

Re: Overinflating Tires

My tires show a maximum pressure of 51 psi while the specification for my car is 30 psi. I've been inflating the front tires to 40-45 psi and the rear tires to 35-40 psi. Gasoline mileage is improved along with a somewhat harsher ride. I've also noticed more precise steering at freeway speeds. The t...
by Electron
Sun Apr 19, 2015 1:42 pm
Forum: Investing - Help with Personal Investments
Topic: M* Article today 4/17 on ATT's shaky dividend
Replies: 20
Views: 1994

Re: M* Article today 4/17 on ATT's shaky dividend

Here is an interesting article about AT&T and its recent removal from the Dow Jones Industrial Average. History has shown that stocks removed from the average often outperform the stocks that replaced them. http://www.cnbc.com/id/102483909 On Friday I had a quick look at the March Value Line rep...
by Electron
Fri Apr 17, 2015 4:00 pm
Forum: Investing - Help with Personal Investments
Topic: M* Article today 4/17 on ATT's shaky dividend
Replies: 20
Views: 1994

Re: M* Article today 4/17 on ATT's shaky dividend

My thoughts are to unload the inherited T 1st as the cost basis is easy to obtain. Also as you suggest I will and had planned on doing it via a tax savy CFP over a period of years to ease any pain. Good luck with your plan. This forum can also be very helpful with asset allocation, fund selection, ...
by Electron
Fri Apr 17, 2015 2:31 pm
Forum: Investing - Help with Personal Investments
Topic: M* Article today 4/17 on ATT's shaky dividend
Replies: 20
Views: 1994

Re: M* Article today 4/17 on ATT's shaky dividend

This would also be a good time to review your overall taxable and tax deferred portfolio and plan changes as necessary. Secondly, understand your tax situation today and later when RMDs start. If the proceeds from the stock sales will go into other taxable investments you may want to think about the...
by Electron
Thu Apr 16, 2015 2:36 pm
Forum: Investing - Theory, News & General
Topic: How much riskier are munis than treasuries?
Replies: 32
Views: 3952

Re: How much riskier are munis than treasuries?

In regards to the liquidity risk, there are fewer bond dealers today than before the 2008 financial crisis. Here is one link with some information. http://www.forbes.com/sites/dwightcass/2014/01/28/banks-retreat-from-the-bond-market-means-more-risk-for-investors/ Municipal bonds do have liquidity pr...
by Electron
Thu Apr 16, 2015 1:51 pm
Forum: Investing - Help with Personal Investments
Topic: In-kind transfer
Replies: 15
Views: 1552

Re: In-kind transfer

Many outside mutual funds available through Vanguard Brokerage are listed as NTF which means No Transaction Fee.

https://investor.vanguard.com/non-vanguard-funds/

Click on the right side of the screen to see the various fund groups. You'll also want to review the rules associated with NTF funds.
by Electron
Sat Apr 04, 2015 10:45 pm
Forum: Personal Finance (Not Investing)
Topic: Renting in Retirement - Considerations?
Replies: 53
Views: 4296

Re: Renting in Retirement - Considerations?

I've had the same exact thought about renting at some point in retirement. One option for those with portfolio income and Social Security is to wait as long as possible to start Social Security. That source of income would be used to pay the rent. Social Security includes inflation adjustments which...
by Electron
Fri Apr 03, 2015 11:00 pm
Forum: Investing - Help with Personal Investments
Topic: No AA for the wealthy ?
Replies: 25
Views: 2741

Re: No AA for the wealthy ?

Morningstar has presented quite a bit of information on the Bucket Strategy. Here is one recent article.

http://news.morningstar.com/articlenet/ ... ?id=640557
by Electron
Mon Mar 30, 2015 6:15 pm
Forum: Investing - Help with Personal Investments
Topic: What makes my marginal tax rate behave like this?
Replies: 15
Views: 1905

Re: What makes my marginal tax rate behave like this?

I was just looking at a few AMT examples in a spreadsheet and decided to test this case. It looks like the top marginal rate should be 38.93%. That assumes that increasing interest income results in higher California taxes and a higher Federal Itemized Deduction. Assumptions: AMT has transitioned ba...
by Electron
Sun Mar 29, 2015 12:19 pm
Forum: Personal Consumer Issues
Topic: Health Insurer, Anthem, Hacked
Replies: 100
Views: 9328

Re: Health Insurer, Anthem, Hacked

I received a legitimate email from Anthem on 2/26 with no links to click and a letter with the same information about three weeks later. If you call the number provided and talk with a fraud specialist, they can tell you if your information was indeed compromised. You only need to provide your name ...
by Electron
Sat Mar 28, 2015 6:20 pm
Forum: Personal Finance (Not Investing)
Topic: If You Print and Mail, Do You Double-Side?
Replies: 44
Views: 15383

Re: If You Print and Mail, Do You Double-Side?

I've used the Federal and State Fill-In PDF Tax Forms for years and have always printed two sided. If anyone has used the California Fill-In PDF Forms, did the entered data print out clearly? My data was all on the light side this year despite printing with color disabled. The IRS forms printed out ...
by Electron
Fri Mar 27, 2015 12:54 pm
Forum: Investing - Theory, News & General
Topic: International stock "dividend variability" Why?
Replies: 37
Views: 3256

Re: International stock "dividend variability" Why?

Here is a site with some good information on foreign dividends. http://www.myinvestmentnavigator.com/news/2014/5/3/what-to-do-with-foreign-dividends "The impact of the exchange rate fluctuations becomes quite clear using the above long-term table." "American investors buying foreign s...
by Electron
Thu Mar 26, 2015 5:06 pm
Forum: Investing - Theory, News & General
Topic: International stock "dividend variability" Why?
Replies: 37
Views: 3256

Re: International stock dividend cut. Why?

You do see a bump in Q4 for TSM--it is noticeably the largest dividend in dollars per share each year, but the variation among Q1-Q2-Q3 is a lot more muted compared to ex-US. Some companies pay special dividends at the end of the year. Also keep in mind that there have been steady dividend increase...
by Electron
Thu Mar 26, 2015 12:41 pm
Forum: Investing - Theory, News & General
Topic: International stock "dividend variability" Why?
Replies: 37
Views: 3256

Re: International stock dividend cut. Why?

It would be helpful if these funds provided information on the percentage of dividends paid in local currency versus U.S. dollars. See my earlier post about Cenovus Energy paying their dividends in Canadian dollars. If international stock fund dividends have dropped as a result of currency movements...
by Electron
Thu Mar 26, 2015 12:18 pm
Forum: Personal Finance (Not Investing)
Topic: 2014 Taxcaster - Finally!
Replies: 26
Views: 5345

Re: 2014 Taxcaster - Finally!

Looks to me like that "marginal tax bracket" is what it would be if you entered only ordinary income; they transition at the same levels regardless of whether you input ordinary income or QDIV/LTCG Thanks for confirming my observations. The calculated tax is correct in either case and tha...
by Electron
Wed Mar 25, 2015 4:01 pm
Forum: Personal Finance (Not Investing)
Topic: 2014 Taxcaster - Finally!
Replies: 26
Views: 5345

Re: 2014 Taxcaster - Finally!

If anyone finds any flaws, please post them. If you enter only a large capital gain or qualified dividend the marginal tax bracket can show as 33% or higher. I was hoping to test AMT and see what ordinary income bracket was in play as you increased income and transitioned from AMT back to the regul...
by Electron
Wed Mar 25, 2015 12:56 pm
Forum: Investing - Theory, News & General
Topic: International stock "dividend variability" Why?
Replies: 37
Views: 3256

Re: International stock dividend cut. Why?

It's possible that exchange rates do affect some dividends. As an example, I have a few shares in Royal Dutch Shell ADR and also Canadian company Cenovus Energy (CVE). The dividends from Royal Dutch Shell ADR are paid in dollars. Cenovus Energy pays in Canadian currency and my dividend in U.S. dolla...
by Electron
Tue Mar 24, 2015 11:35 pm
Forum: Investing - Theory, News & General
Topic: International stock "dividend variability" Why?
Replies: 37
Views: 3256

Re: International stock dividend cut. Why?

Vanguard FTSE All-World ex-US Index Fund also cut the dividend significantly when compared to the March 2014 dividend. https://personal.vanguard.com/us/funds/snapshot?FundId=0570&FundIntExt=INT#tab=4 The dividend dropped from $0.244 to $0.101. There were undoubtedly some dividend cuts in Europe ...
by Electron
Tue Mar 24, 2015 12:49 pm
Forum: Personal Finance (Not Investing)
Topic: Best tools to understand the AMT?
Replies: 14
Views: 1427

Re: Best tools to understand the AMT?

Here is a good article regarding the subject on Michael Kitces' blog, https://www.kitces.com/blog/evaluating-exposure-to-the-alternative-minimum-tax-and-strategies-to-reduce-the-amt-bite/ As mentioned earlier, the two charts showing the AMT Bump Zone are an excellent illustration of what goes on un...
by Electron
Mon Mar 23, 2015 10:26 pm
Forum: Personal Finance (Not Investing)
Topic: Best tools to understand the AMT?
Replies: 14
Views: 1427

Re: Best tools to understand the AMT?

Here is a good article regarding the subject on Michael Kitces' blog, https://www.kitces.com/blog/evaluating-exposure-to-the-alternative-minimum-tax-and-strategies-to-reduce-the-amt-bite/ That is an excellent article and I especially like the charts showing the AMT Bump Zones. It now makes more sen...
by Electron
Mon Mar 23, 2015 2:15 pm
Forum: Personal Finance (Not Investing)
Topic: Best tools to understand the AMT?
Replies: 14
Views: 1427

Re: Best tools to understand the AMT?

I'm trying to do my taxes and am running up against the AMT and all of its interactions with long-term capital gains tax rates, disallowed deductions, tax rates that effectively go down as you earn more money, and other complex things. I've read a bunch of articles on the AMT but am still confused....
by Electron
Mon Mar 23, 2015 2:02 pm
Forum: Investing - Help with Personal Investments
Topic: AAPL
Replies: 226
Views: 50171

Re: AAPL

Here is some commentary on the sudden drop in AAPL shares on Friday 3-20-15.

http://www.valuewalk.com/2015/03/apple- ... ash-crash/
by Electron
Sun Mar 22, 2015 10:59 pm
Forum: Investing - Help with Personal Investments
Topic: VWENX in taxable account
Replies: 5
Views: 767

Re: VWENX in taxable account

You might pass along a little more information about your overall portfolio and future retirement income as otherwise it is hard for anyone to make recommendations. It's not clear if the three funds mentioned are in tax deferred accounts or possibly taxable accounts as well. Morningstar is a good si...
by Electron
Sun Mar 22, 2015 6:08 pm
Forum: Investing - Help with Personal Investments
Topic: VWENX in taxable account
Replies: 5
Views: 767

Re: VWENX in taxable account

I would start by examining my latest tax return. Wellington fund in a taxable account would have little tax penalty if you can take advantage of the 0% bracket for qualified dividends and capital gains. See if you have any empty space in the 15% bracket where qualified dividends and capital gains ar...
by Electron
Sun Mar 22, 2015 4:50 pm
Forum: Investing - Help with Personal Investments
Topic: In 39% Tax Bracket does a Roth make sense?
Replies: 18
Views: 3055

Re: In 39% Tax Bracket does a Roth make sense?

The Roth IRA does have valuable benefits in regards to estate planning. The taxes paid in doing a Roth Conversion can lower the taxable value of one's estate. Holding a Roth IRA rather than a Traditional IRA also lowers MAGI possibly lessening the impact of the new Medicare Investment Income tax and...
by Electron
Fri Mar 20, 2015 2:56 pm
Forum: Investing - Help with Personal Investments
Topic: In 39% Tax Bracket does a Roth make sense?
Replies: 18
Views: 3055

Re: In 39% Tax Bracket does a Roth make sense?

In the 39.6% bracket, investing in a traditional 401K with the upfront tax savings is the best choice. Just make sure that the tax savings are invested and not spent. When it comes time to withdraw from the account and pay taxes, that upfront tax savings will cover at least a portion of the taxes due.
by Electron
Sun Mar 15, 2015 4:44 pm
Forum: Investing - Theory, News & General
Topic: Cap Gains & Divs killed me this year
Replies: 65
Views: 7569

Re: Cap Gains & Divs killed me this year

The taxes I pay on capital gains and dividends, especially non-qualified dividends from foreign shares, have made me really appreciate the Vanguard Total Stock Market Index Fund (VTSAX). It is very efficiently tax managed, and apparently uses redemptions in the associated ETF to minimize taxes for ...
by Electron
Thu Mar 12, 2015 2:45 pm
Forum: Personal Finance (Not Investing)
Topic: Selecting a Medigap Policy with 28 Choices
Replies: 42
Views: 3962

Re: Selecting a Medigap Policy with 28 Choices

It looks like the Medicare Part D Formularies do vary from plan to plan.

http://www.medicare.gov/part-d/coverage ... erage.html

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