Search found 5624 matches

by Kevin M
Fri Aug 28, 2015 2:36 am
Forum: Investing - Help with Personal Investments
Topic: Help getting off the sideline
Replies: 7
Views: 728

Re: Help getting off the sideline

• planning to move this to Vanguard ETFs (instead of mutual funds) I like the move to Vanguard, but why ETFs? Using mutual funds is easier--no need to worry about order types, bid/ask spread, discount/premium, intra-day price movements, etc. And expense ratio for Admiral Shares is as low as ETFs. I...
by Kevin M
Fri Aug 28, 2015 2:26 am
Forum: Investing - Help with Personal Investments
Topic: Identical fund in two accounts: possible to avoid wash sale rule?
Replies: 14
Views: 899

Re: Identical fund in two accounts: possible to avoid wash sale rule?

Based on the other conversations about any non-IRA tax-advantaged plan not being covered by the IRS wash-sale ruling, if it were me, I would avoid using the exact same funds in taxable and 401k/403b accounts when doing tax-loss harvesting if it were simple enough based on my simplicity desires, but ...
by Kevin M
Fri Aug 28, 2015 1:21 am
Forum: Investing - Theory, News & General
Topic: Long term bonds in VBTLX/VBMFX
Replies: 35
Views: 2636

Re: Long term bonds in VBTLX/VBMFX

I don't know if anyone mentioned this yet, but VB TL X is not long term bond. VB LT X is. That would be an unfortunate order entry mistake, but I guess there are worse errors to be made. The question was not about a long-term bond fund, but about the long-term bonds in the Total Bond Market Index f...
by Kevin M
Fri Aug 28, 2015 1:18 am
Forum: Investing - Theory, News & General
Topic: Why buy high dividend fund during a correction?
Replies: 14
Views: 1301

Re: Why buy high dividend fund during a correction?

I was researching this as a possible TLH partner for the Total Stock Market and the S&P 500 Index funds. My preference is to be in one of those, but if I wanted to keep on TLH'ing, I had to find somewhere else to park that large blend US equity asset class. Vanguard Large-Cap Index fund is an e...
by Kevin M
Fri Aug 28, 2015 1:04 am
Forum: Investing - Help with Personal Investments
Topic: VTI - "Market" order type
Replies: 25
Views: 1868

Re: VTI - "Market" order type

I helped a friend sell 450 shares of VTI today, and with this thread fresh in mind, was determined to use a limit order ;-) Unfortunately this was during the afternoon swoon when VTI was heading down. Every time I refreshed the quote to determine a limit price, the bid/ask had dropped further, and I...
by Kevin M
Fri Aug 28, 2015 12:49 am
Forum: Investing - Help with Personal Investments
Topic: TLH tomorrow? Please help me decide [Tax Loss Harvesting]
Replies: 22
Views: 985

Re: TLH tomorrow? Please help me decide [Tax Loss Harvesting]

We did it today. The loss from these two funds ended up being a little over $19.1K, and we harvested losses in another account of about $1.5K (while eliminating two more ETFs in that account, which we want to eliminate--one fund left to go). Since we missed the better TLH opportunities earlier in th...
by Kevin M
Thu Aug 27, 2015 12:37 pm
Forum: Investing - Help with Personal Investments
Topic: TLH tomorrow? Please help me decide [Tax Loss Harvesting]
Replies: 22
Views: 985

Re: TLH tomorrow? Please help me decide [Tax Loss Harvesting]

Sorry, I misread the 8/25 lots as 6/25 lots, so go ahead and exchange them, too. Thanks--just wanted to make sure I'm not misunderstanding the relative negative impact of a wash sale vs. taking the gains. Unfortunately, the market is not cooperating today, and at this point the total losses are est...
by Kevin M
Thu Aug 27, 2015 11:48 am
Forum: Investing - Theory, News & General
Topic: VHT down 27% - Glitch or missed opportunity
Replies: 59
Views: 5255

Re: VHT down 27% - Glitch or missed opportunity

I was wondering if they sent some sort of expiration warning notice. I guess I will have to pay attention as Vanguard, where I placed the order, will close It after 60 days. I think I did receive an email, but the subject was something about a trade confirmation or other lingo that I didn't associa...
by Kevin M
Thu Aug 27, 2015 11:33 am
Forum: Investing - Theory, News & General
Topic: VHT down 27% - Glitch or missed opportunity
Replies: 59
Views: 5255

Re: VHT down 27% - Glitch or missed opportunity

I use limit orders when I trade for a family member and because I missed a few expirations, I now put entries in Google Calendar to warn me when those 60 days are almost up. I also check those limit orders whenever I have to replace my furnace filter. :-) Yes! Google Calendar to the rescue. I use i...
by Kevin M
Thu Aug 27, 2015 11:28 am
Forum: Investing - Theory, News & General
Topic: Why no diversification benefit for international in this week's crash?
Replies: 64
Views: 3279

Re: Why no diversification benefit for international in this week's crash?

I care about short run results for rebalancing. If there's a flash crash in one asset I want to be able to sell my other assets to rebalance into it and restore my AA and get better returns by buying low and selling high. But when all assets fall at the same time, no rebalancing bonus can be gained...
by Kevin M
Thu Aug 27, 2015 11:14 am
Forum: Investing - Theory, News & General
Topic: Long term bonds in VBTLX/VBMFX
Replies: 35
Views: 2636

Re: Chosing Mutual Funds?

I picked out this one because the 5-year performance has it lagging nearly 80% of it's peers. I'll let Taylor answer for himself, but on just this one point, a well known feature of index funds is that they lag their actively-managed peers when the particular style or index is not doing well, but t...
by Kevin M
Thu Aug 27, 2015 11:07 am
Forum: Investing - Theory, News & General
Topic: Long term bonds in VBTLX/VBMFX
Replies: 35
Views: 2636

Re: Long term bonds in VBTLX/VBMFX

yeah I got some 1% savings account, guess it's not worth the risk to get into bonds. So wait till interest rate gets higher? how high is good to get back in it? Again, no one can tell you when it's a good time to "get back in". It's better to learn about the types of risks in various alte...
by Kevin M
Thu Aug 27, 2015 10:52 am
Forum: Investing - Help with Personal Investments
Topic: Was about to change from 100% equity to 80%. Now what?
Replies: 60
Views: 4062

Re: Was about to change from 100% equity to 80%. Now what?

Some people have as part of their investment policy (IP) not to change their IP for a certain period of time after deciding that it's a good idea. I believe poster Nisiprius's policy is to wait six months. I think something like that probably is a good idea, especially for someone who's idea of the ...
by Kevin M
Thu Aug 27, 2015 10:34 am
Forum: Investing - Theory, News & General
Topic: VHT down 27% - Glitch or missed opportunity
Replies: 59
Views: 5255

Re: VHT down 27% - Glitch or missed opportunity

Along those lines I now have open limit orders to buy IJS at 85 and VWO at 28. Maybe lightning will strike thrice. At the brokerages I use, limit orders expire after a certain amount of time, like 60 days, so be sure to re-enter your limit orders before or when they expire. My guess is that it will...
by Kevin M
Thu Aug 27, 2015 10:18 am
Forum: Investing - Help with Personal Investments
Topic: Asset location: expected earning vs. tax efficiency
Replies: 14
Views: 952

Re: Asset location: expected earning vs. tax efficiency

Kevin M: quite interesting. The post seems to simplify for the sake of clarity. For example, spreading the capital gains tax across many years. From what I can see, things are not so simple, especially for shorter time horizons, where the exact opposite of what he says is true. This is lost in the ...
by Kevin M
Thu Aug 27, 2015 3:00 am
Forum: Investing - Help with Personal Investments
Topic: TLH tomorrow? Please help me decide [Tax Loss Harvesting]
Replies: 22
Views: 985

Re: TLH tomorrow? Please help me decide [Tax Loss Harvesting]

Am hoping for a reply to my critique of livesoft's suggestion to sell/exchange only tax lots with losses before I make a decision tomorrow. At this point, my inclination is to exchange all shares into TLH partners tomorrow, and if there are additional significant declines before year end, exchange t...
by Kevin M
Thu Aug 27, 2015 2:55 am
Forum: Investing - Theory, News & General
Topic: So I think I screwed up my TLH
Replies: 5
Views: 390

Re: So I think I screwed up my TLH

Really? I'm shocked. I thought it was all tax advanced accounts. Only ira's and Rothș... that's awesome Yes, I also assumed it applied to all tax-advantaged accounts until yesterday; we're all still learning something here. Everyone doesn't agree, but at least one highly respected tax expert on the...
by Kevin M
Thu Aug 27, 2015 2:47 am
Forum: Investing - Theory, News & General
Topic: TLH - Auto reinvest dividends and SpecID
Replies: 2
Views: 216

Re: TLH - Auto reinvest dividends and SpecID

If you have losses on all shares and sell them all, it doesn't matter. The reason to use SpecID is that you may have losses on only some tax lots, so you can harvest losses by just selling the tax lots with losses. The reason not to reinvest dividends is to avoid complications due to wash sale rules...
by Kevin M
Thu Aug 27, 2015 2:44 am
Forum: Investing - Help with Personal Investments
Topic: Asset location: expected earning vs. tax efficiency
Replies: 14
Views: 952

Re: Asset location: expected earning vs. tax efficiency

You might find this blog post by forum member tfb helpful: Tax Efficiency: Relative or Absolute?. I think you've stumbled onto exactly the point he is getting at in this blog post.

Kevin
by Kevin M
Thu Aug 27, 2015 2:40 am
Forum: Investing - Theory, News & General
Topic: So I think I screwed up my TLH
Replies: 5
Views: 390

Re: So I think I screwed up my TLH

Based on discussions in other threads the last couple of days, the consensus seems to be that the IRS ruling that includes IRAs in wash sale determinations does not apply to 401k or other tax-advantaged accounts. The ruling and the IRS publications refer explicitly to IRAs, and do not mention other ...
by Kevin M
Thu Aug 27, 2015 2:34 am
Forum: Investing - Theory, News & General
Topic: Long term bonds in VBTLX/VBMFX
Replies: 35
Views: 2636

Re: Long term bonds in VBTLX/VBMFX

noob question , is now a good time to buy bond? or wait for interest rate to go up to get a lower bond price? (I got like 55% total stock and 40% total international. need some bond) One of the elements of the Bogleheads investment philosophy is to not try to time the markets. People, including me,...
by Kevin M
Thu Aug 27, 2015 2:18 am
Forum: Investing - Help with Personal Investments
Topic: Was about to change from 100% equity to 80%. Now what?
Replies: 60
Views: 4062

Re: Was about to change from 100% equity to 80%. Now what?

My model was wrong. Even if earnings are stable now the future stream of earnings themselves can have deep risk. It's great to see someone learning so quickly, especially after being so adamant about a particular point of view. All models are just that-models, so I wouldn't become too enamored with...
by Kevin M
Wed Aug 26, 2015 10:46 pm
Forum: Investing - Theory, News & General
Topic: Why buy high dividend fund during a correction?
Replies: 14
Views: 1301

Re: Why buy high dividend fund during a correction?

One thing you could do to investigate for yourself is to use PortfolioVisualizer or some other charting tool to look at large-cap high-dividend funds during corrections. As I think another poster said, high-dividend stocks basically are value stocks, so will do well when value stocks do well. I susp...
by Kevin M
Wed Aug 26, 2015 10:38 pm
Forum: Investing - Help with Personal Investments
Topic: Was about to change from 100% equity to 80%. Now what?
Replies: 60
Views: 4062

Re: Was about to change from 100% equity to 80%. Now what?

I feel like I chose the worst week to change my asset allocation. Should I just stay the course at 100%? Gradually ramp down over the course of one or several years? Has anyone had this problem before? Give me a break! A few weeks ago, or even less, many of us were doing our best to convince you th...
by Kevin M
Wed Aug 26, 2015 10:31 pm
Forum: Investing - Help with Personal Investments
Topic: Does anticipated federal rate hike affect savings/HSA account choices today?
Replies: 3
Views: 278

Re: Does anticipated federal rate hike affect savings/HSA account choices today?

Anticipated rate hike is already priced into fixed income securities, so I would not wait. Also, although I don't pay much attention, last I heard chances were looking slim for a September rate hike. Keep in mind that the federal funds rate affects mainly short-term rates. You can find lots of examp...
by Kevin M
Wed Aug 26, 2015 10:27 pm
Forum: Investing - Theory, News & General
Topic: Why buy high dividend fund during a correction?
Replies: 14
Views: 1301

Re: Why buy high dividend fund during a correction?

I no longer watch the financial networks, so haven't heard this, and it sounds like just another stupid thing that you should tune out.

Kevin
by Kevin M
Wed Aug 26, 2015 10:25 pm
Forum: Investing - Help with Personal Investments
Topic: Admiral shares question
Replies: 4
Views: 518

Re: Admiral shares question

I have had many funds in my accounts and other accounts I manage where value dropped below Admiral Share limit, and even some for which this happened because I sold shares. I don't recall ever having shares converted back to Investor shares. I always get a warning about this when I sell shares that ...
by Kevin M
Wed Aug 26, 2015 10:08 pm
Forum: Investing - Help with Personal Investments
Topic: TLH tomorrow? Please help me decide [Tax Loss Harvesting]
Replies: 22
Views: 985

Re: TLH tomorrow? Please help me decide

I would sell all positions with losing shares tomorrow and no positions with gains. I was actually thinking that that may not be as good an alternative as simply selling all shares, for the following reason. Using VTIAX as an example, as I understand it, if I don't sell the 8/25 lot (with a gain as...
by Kevin M
Wed Aug 26, 2015 9:22 pm
Forum: Investing - Help with Personal Investments
Topic: TLH tomorrow? Please help me decide [Tax Loss Harvesting]
Replies: 22
Views: 985

Re: TLH tomorrow? Please help me decide

a loss will offset combined federal and state capital gains taxes at a rate of about 25%, so even a $20K loss will save about $5K in 2015 income taxes ^ I believe that's incorrect. I think the maximum loss you can report in 2015 is $3,000. So the loss will only save you $750 on taxes for 2015. But ...
by Kevin M
Wed Aug 26, 2015 9:08 pm
Forum: Investing - Theory, News & General
Topic: Why no diversification benefit for international in this week's crash?
Replies: 64
Views: 3279

Re: Why no diversification benefit for international in this week's crash?

joe8d wrote:International was up Tues while domestic was down.

And today US (VTSAX) was up 3.65%, while international (VTIAX) was only up 1.83%.

Kevin
by Kevin M
Wed Aug 26, 2015 9:04 pm
Forum: Investing - Help with Personal Investments
Topic: TLH tomorrow? Please help me decide [Tax Loss Harvesting]
Replies: 22
Views: 985

Re: TLH tomorrow? Please help me decide

I am wrestling with a similar problem, but on a smaller scale. How do you factor in the 3 lost days in the market when making tax loss harvesting decisions? If you had sold yesterday after the big down day you would have had to wait 3 days for your trade to clear and would have missed today, no? I ...
by Kevin M
Wed Aug 26, 2015 8:57 pm
Forum: Investing - Help with Personal Investments
Topic: Another TLH question. [Tax Loss Harvesting]
Replies: 11
Views: 707

Re: Another TLH question.

Does selling the shares in the HSA before selling in taxable cancel out the fact that replacement shares were purchased within 30 days? No. What it does is that then only my HSA sale would be considered a wash sale and I only lose out on CA tax deduction. I can then use my subsequent sale in my tax...
by Kevin M
Wed Aug 26, 2015 8:50 pm
Forum: Investing - Help with Personal Investments
Topic: VTI - "Market" order type
Replies: 25
Views: 1868

Re: VTI - "Market" order type

^Placing a market order when the market is closed is very different than placing one while market is open, and after monitoring bid/ask spreads and bid/ask quantities for a minute or so. I would never place a market order when market is closed, and unless bid/ask activity looked fairly stable and bi...
by Kevin M
Wed Aug 26, 2015 8:34 pm
Forum: Investing - Theory, News & General
Topic: Why no diversification benefit for international in this week's crash?
Replies: 64
Views: 3279

Re: Why no diversification benefit for international in this week's crash?

An oft-stated maxim is that in times of crisis or panic, correlation of risky assets converges toward 1.

Kevin
by Kevin M
Wed Aug 26, 2015 8:31 pm
Forum: Investing - Help with Personal Investments
Topic: TLH tomorrow? Please help me decide [Tax Loss Harvesting]
Replies: 22
Views: 985

TLH tomorrow? Please help me decide [Tax Loss Harvesting]

I'm looking for inputs from Bogleheads experienced with tax-loss harvesting on what they would do in this (real) situation. The table below shows tax lots with gain/loss as of today for Vanguard Total International Stock (VTIAX) and Vanguard Total Stock Market (VTSAX). The objective is to maximize t...
by Kevin M
Wed Aug 26, 2015 5:19 pm
Forum: Investing - Help with Personal Investments
Topic: VTI - "Market" order type
Replies: 25
Views: 1868

Re: VTI - "Market" order type

It probably takes you seconds to click submit after your last refresh, not to mention the network transit time of both the refresh and the submit. A mini glitch can happen and it doesn't have to be tens of percentage points to hurt. To me it's just the price of using ETFs - while my mutual funds ha...
by Kevin M
Wed Aug 26, 2015 5:04 pm
Forum: Investing - Theory, News & General
Topic: Wash Sale Quiz!
Replies: 34
Views: 1512

Re: Wash Sale Quiz!

Two things I find very interesting about the IRS publication rules (fourth bullet) are first, that they explicitly mention IRA and Roth IRA only, not simply as examples of retirement account types. Yes, this is being discussed in at least two other current threads. And second, that unlike bullets 1...
by Kevin M
Wed Aug 26, 2015 5:01 pm
Forum: Investing - Help with Personal Investments
Topic: Tax Loss Harvest - Wash Sale - Your 401k
Replies: 14
Views: 632

Re: Tax Loss Harvest - Wash Sale - Your 401k

livesoft wrote:@Kevin M, I can buy anything I want in my solo 401(k). :)

Was this comment intended for Roothy?

Kevin
by Kevin M
Wed Aug 26, 2015 4:59 pm
Forum: Investing - Help with Personal Investments
Topic: Dipping into the emergency fund for rebalancing purposes during market downturns?
Replies: 25
Views: 1642

Re: Dipping into the emergency fund for rebalancing purposes during market downturns?

Given the information provided, I would be comfortable doing it, but I'm not sure it's a good idea, and not for the reasons mentioned so far. The reason it may not be a good idea is because I think using rebalancing bands of about +/-5% makes sense to me, and it is highly unlikely that the recent mi...
by Kevin M
Wed Aug 26, 2015 4:48 pm
Forum: Investing - Help with Personal Investments
Topic: Tax Loss Harvest - Wash Sale - Your 401k
Replies: 14
Views: 632

Re: Tax Loss Harvest - Wash Sale - Your 401k

I've just assumed it applies to any tax-advantaged account, but in participating in another post about something similar with an HSA, I saw that the IRS pubs and instructions only mention IRAs. So I can see the source of confusion, and this is yet one more wash-sale thing that is unclear (like what ...
by Kevin M
Wed Aug 26, 2015 4:46 pm
Forum: Investing - Help with Personal Investments
Topic: Chase Checking to Vanguard Electronic Transfer
Replies: 6
Views: 461

Re: Chase Checking to Vanguard Electronic Transfer

Chase does not charge me a fee for outbound transfers--in my case, to Ally Bank. But for buying and selling mutual funds at Vanguard, you want to set it up on the Vanguard side anyway, as this way you can do same-day purchases of mutual funds, and have proceeds from sales go directly to your bank ac...
by Kevin M
Wed Aug 26, 2015 4:37 pm
Forum: Investing - Help with Personal Investments
Topic: Another TLH question. [Tax Loss Harvesting]
Replies: 11
Views: 707

Re: Another TLH question.

I'm not sure it's as simple as some are thinking, but I don't really know. Assuming the IRS treats an HSA the same as an IRA (only IRA is mentioned in the Wash Sales section of the Schedule D instructions), the shares purchased in the HSA within 30 days prior to the sale result in a wash sale for th...
by Kevin M
Wed Aug 26, 2015 3:55 pm
Forum: Investing - Theory, News & General
Topic: Wash Sale Quiz!
Replies: 34
Views: 1512

Re: Wash Sale Quiz!

@2retire, your understanding is not complete, so back to reading TLH threads for you. :) But thanks for posting as it may help some others who think the same way. Or just read this thread more carefully, since the explanation has been posted here, along with a quote from IRS pub 550 with the most r...
by Kevin M
Wed Aug 26, 2015 3:47 pm
Forum: Investing - Theory, News & General
Topic: Is tax loss harvesting always worth all the fuss?
Replies: 58
Views: 3969

Re: Is tax loss harvesting always worth all the fuss?

Do I just press the "exchange" button rather than the "buy" or "sell" buttons, and then I get the closing price for both on the same day? Yes. Exchange one fund for the other. Exactly. Of course TLH loss today would not have been as big as TLH loss yesterday, depending...
by Kevin M
Wed Aug 26, 2015 3:43 pm
Forum: Investing - Theory, News & General
Topic: VHT down 27% - Glitch or missed opportunity
Replies: 59
Views: 5255

Re: VHT down 27% - Glitch or missed opportunity

I wonder if anyone has a list of all the ETFs that had large 20%+ drops on Monday so that we could look for any commonalities to try and predict which ones might do so again in the future. I mentioned for example in another thread that IJS dropped big time while VBR did not. I don't know about all,...
by Kevin M
Wed Aug 26, 2015 1:23 pm
Forum: Investing - Help with Personal Investments
Topic: Do you count cash towards your portfolio asset allocation?
Replies: 34
Views: 1783

Re: Do you count cash towards your portfolio asset allocation?

Today MMFs and even online savings accounts yield less than the CPI. But more than recent market returns :? ... - Ron Actually, last I checked annual percent change in CPI had been hovering around 0% year to date, so so far in 2015, online savings account earning 1% has been earning about 1% real, ...
by Kevin M
Wed Aug 26, 2015 1:19 pm
Forum: Investing - Theory, News & General
Topic: Is tax loss harvesting always worth all the fuss?
Replies: 58
Views: 3969

Re: Is tax loss harvesting always worth all the fuss?

And playing with TurboTax, pretending I'm retired and using my taxable account to finance my lifestyle until I tap my tax-advantaged accounts, I realize how valuable those carryover losses can be when I'll be selling appreciated shares. I realize this is an imaginery exercise now, but it helps wrap...
by Kevin M
Wed Aug 26, 2015 1:13 pm
Forum: Investing - Help with Personal Investments
Topic: VTI - "Market" order type
Replies: 25
Views: 1868

Re: VTI - "Market" order type

I agree with you that the large ETFs are okay-ish with market order and I typically got good execution too. But I have to say, yesterday changed my mind and from now on it's limit only. Before, you could have said that the May '10 flash crash was a one time thing. Since market orders are executed e...
by Kevin M
Wed Aug 26, 2015 12:59 pm
Forum: Investing - Theory, News & General
Topic: VHT down 27% - Glitch or missed opportunity
Replies: 59
Views: 5255

Re: VHT down 27% - Glitch or missed opportunity

... the path to fortune can't be as easy as maintaining an open limit order to "buy" (if that's the right terminology) at 20% below the market price. I've actually thought about doing this. What Monday showed is that you'd have to maintain limit orders on a bunch of ETFs, since only a sub...
by Kevin M
Wed Aug 26, 2015 12:50 pm
Forum: Investing - Theory, News & General
Topic: Long term bonds in VBTLX/VBMFX
Replies: 35
Views: 2636

Re: Long term bonds in VBTLX/VBMFX

Although TBM is fine for someone who values simplicity over optimization, or who may not have a choice (e.g., all portfolio in a 401k/403b), or even for someone has a high stock allocation so the bond holdings don't matter much, I do think it's worth thinking about the components of TBM for someone ...

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