Bogleheads.org

Why say to "hold forever". Why does how long you hold the fund have anything to do with TLH? Also why bother to look for a "similar" fund. 31 days is nothing; seems to me, just wait a month and buy your same preferred fund again.

I just read about tax loss harvesting and am wondering about something. If you can carry looses forward year to year and you can buy back into the same fund 31 days later - why wouldn't you sell and then rebuy any fund that was going to loose money at the end of the year? I think I am missing someth...

Steve Roy, what is the "job" Wellesley does for you? And what is it that TRI does for you?

I was aware of the points you made. Maybe I am just not understanding. But the things you highlighted, to me, just seem like issues of accepting or not accepting, more risk. What I can't seem to grasp is how these two funds complement each other to the point of being beneficial to hold both.

each of these funds has strengths not offered by the other

That is what I would like to know. Could you amplify. thanks.

In the last couple of months I have read several threads that talk about the Vanguard Wellesley fund and Vanguards Target Retirement Income fund. Numerous times I have come across comments where people are putting their money in both funds. I've looked at the performance of both funds in up market p...

Can a beginner comment? To me the risk is constant and unknown at any specific time. How you reduce the risk is by extending the time you have stocks (invest early) and reducing your exposure to stocks the closer you get to needing the money. The market goes up and the market goes down. We can't kno...

Thanks, BL. After a 153 views I'm glad someone took the time to respond! Obviously I didn't write this up very good or I would have had better responses. Maybe I should amplify a little. The $50K in VTINX is money I seriously want to leave to my son. But considering how life events always seem to co...

I am a 70 year old single male in excellent health with a 23 year old son. My 94 year old mother has her own funds that cover her living expenses which includes a house I have an interest only loan on that I will own free and clear on her passing. I have a federal pension with the Civil Service Reti...

Pondo33, I am in pretty much the same situation you are. I read BG to I which was very good, and the Elements of Investing by Ellis. But the one that really helped was The Only Guide You'll Ever Need for the Right Financial Plan by Swedroe. It explained a lot of the different areas of investing I ha...

yes, i just read about how the valuation date/price is changed to the date of death, not the date/price of original purchased.

there is no magic wand you can wave to make it all turn into a tax sheltered investment.

This is the jist of what I was after. Thanks all.

situation: you inherit money in a mutual fund with extensive capital gains. I understand you can immediately sell the funds upon inheriting, then take the cash an purchase a Roth IRA. Question: are you limited to the annual limit and/or your earned income; or, because it was inherited money, you cou...

OP You did not mention in your original post your duration, how long is this money going to be invested. If it will be there for 30+ years and not withdrawn for anything less than the absolute worst catastrophe, then investing all in probably would let you sleep at night because the odds of a full o...

Just for fun I subscribed to a certain newsletter. I got there new hot stock pick that was GOFF a gold mining operation. The stock was something like $0.12 a share. I got emails every few days telling me it would go sky high and to "buy now". Even when the stock went down a little I got a ...

I'll check into "Wise Investing".

I don't want to know this 'stuff" so I can micro manage. I want to know it so I just understand what something is when I see it. And maybe there isn't an easy way and I just need to look it up as I come upon it.

If I take the monthly posted dividend of a fund x the number shares that gives me the cash value of that dividend. If I then multiply that monthly dividend by 12 it gives me a snapshot (at that moment) of the funds annual return. If the fund posts ST Cap Gains, I need to add those in to get the full...

But should it not stand that IF you recognize the fact of chart 2 and IF you recognize that Wellington has performed well through many managers and many market conditions - that there may be something good in its basic investment philosophy?

Nisiprius, once again you have helped me greatly. I actually comprehend nearly all of what you write. Your second chart was something I had already stumbled on that is one of my other "findings" I'm trying to learn and comprehend - 10 years means nothing to the market; but is a good chunk ...

thanks, all especially avalpert

Yes, I know, I have read it over and over again. "Past performance doesn't guarantee future results". That being said, how do you balance that with something like the Wellington fund that has returned over 8%, on average, for 84 years! comments?

Forgive me if I am not understanding, or misunderstanding. Is what you show just a decision at what level you want to hold each asset. When I think of "complementing" I think of two things that are contrarian to each other that help to level out the playing field. Not sure I see that in a ...

Taylor, thank you. You confirmed what I suspected. I really am starting to understand about ignoring the "noise" as a good Boglehead should; but there is SO MUCH of it out there. I'm discovering that if you just look enough you will find exactly "what" you think you want to belie...

Maybe you have answered part of my question, but I think I should have worded it differently. How do these two funds compliment each other, if they do?

I've read this entire thread and a few others on the Wellesley vs TRI debate. One thing I haven't gotten a grasp on yet is why a number of people hold these two funds together. I'm new to all this and would appreciate any comments from those who know or are doing it - what they gain by having both f...

Could someone tell me if it makes any difference at all time wise if you have money in a MM you put into and may occasionally take out of a Vanguard MF; if the MM is or is not with Vanguard?

I think this is correct: If I have a simple three fund portfolio and if stocks take a huge hit like in 2008 I would rebalance my assets, moving money from bond fund into stock fund. Now, if instead of a three fund portfolio I have something like TR Income or Wellesley Income - did those funds rebala...

Nisi...,

I love reading your stuff. By chance do you know what was different between the green circle and the red circle that made the REIT act so differently. Thanks

In doing my reading about bond funds i stumbled on something else I don't understand. In comparing Vanguards Total Bond Market Fund to their Intermediate Tax Exempt Bond Fund I observed the following: over the long term (10 years) the TBM outperformed the TEB; but if I look at just the past year or ...

well the second part was not meant to be a political question, but a financial one I thought. I read something a while ago that was of the jist that if the national debt was high enough and interest rates started rising, the payments on those debts would suck up every penny the government has. But, ...

things are a little topsy turvy right now Is it possible to explain in just a few sentences what it is that is making things "topsy turvy". I have no idea if it is part of this discussion. but I have been thinking about something for a while now. It is totally unreal that the govt has bee...

I am 70 without any earned income. I know all my questions are disjointed. Not trying to hide anything. I just finished BGtoI, getting ready for second book. It's just that I keep reading and every question leads to three new questions. I'm trying to learn stuff that impacts my 94 year old mothers m...

my taxable income is around $65K and will most likely remain in the range $60K-$75K for a few years more at least. I think what I read said that if you where at or above 25% tax rate then in the long term tax exempt would give you a higher return than total bond market after taxes. I don't know near...

My latest reading has been about using the Total bond market ((VBMFX) or a Tax-Exempt Bond Fund like VWITX in a portfolio asset allocation. I think I understand about maturity/duration and how interest rates affect them. I think I'm right in that generally it is consider it would be better to be in ...

could someone tell a new guy what the ramifications of this are? thanks.

I'm working on an asset allocation as much as a learning tool for myself as an actuality. The holder of the below allocation is not eligible for a tax-advantaged account. Portfolio value $100K. Could anyone please help with the following. A three fund portfolio allocated as follows: 40% Intermediate...

could you or someone answer another question I stumbled on. If you have a TIPS fund like VIPSX I am reading something that gives me the impression you owe taxes on it every year whether you sold it or not. Is this correct?

must not have done a good job wording my original question, will wait a bit longer.

but I also have a followup question. Are Inflation Protected Securities a valid counterbalance to having long term bond funds in your AA?

I am learning about bonds and do somewhat understand the correlation between duration and the effects of interest rate changes. I understand that if we go into a period of interest rate increases those I and LT bonds are going to take a hit. But right now things are flat and there is no indication I...

My question relates specifically to Vanguard Tax-exempt Short (VWSTX), intermediate (VWITX) and Long Term (VWLTX) Bond funds. In developing my plan for asset allocation I have been looking at these three tax exempt bond funds. When I reviewed the Perf Chart for these funds from 2000 to present it ha...

yes, thanks. when I get a little more organized/educated i'll do that. right now my learning curve is like a family tree it keeps branching and getting bigger and bigger the more I read. I need to get far enough into it (smarter) that tree starts to contract.

thanks all, especially nisiprius. Your chart was what I wanted to see. Something that went back further than one major decline, that compared aggressive to conservative. If that chart does anything for me it is get conservative the closer you are to needing the money. but my overall picture is start...

My question was not so much about when you buy; but what you buy. But Ladygeekm pretty much said it - buy what you can live with. I suspect I may be willing to be more aggressive when I get more educated - but then maybe not.

Maybe I've started to answer my own question, and maybe my comment had more to do with risk than whether you are in an angressive or conservative fund. If you are going to be in the market; if you believe the market will have a major decline/collapse sometime in the future, and if you believe the co...

For all your sakes and mine, try to compress this. Some of you have read my many posts over the past month. I'm half way through my first book with more coming, read tons. Sometimes learning, most of the time just getting confused. After a lifetime of living on the edge and carrying debt I am making...

Thanks for the responses.......How do you guys learn so much stuff

I just watched a couple of Vanguard videos on their investing philosophy. They stated a couple of times that one of their general rules was to hold a bond percentage equal to your age. However, when I review the Vanguard Target Retirement funds they don't even come close to this kind of allocation; ...

livesoft, maybe I am using the wrong terminology (roll over). but I think we are getting there. You are making the answer more complicated than it needs to be for me. I understand about contribution limits to a Roth IRA and about having "earned income" and I think I now understand you only...

Livesoft, I'm sorry I thought both were clear. #1 Can an Heir inherit a normal taxable fund and roll it into a Roth IRA and pay no taxes? that was the question. I believe the answer is, no taxes. #2 If a person starts out with their own normal taxable fund; can they roll it into a roth IRA at some t...