Search found 6154 matches

Return to advanced search

Re: The Distribution of Individual Stock Returns, 1983-2006

Put yet another way. Let's say your universe is N stocks, and you identify the worst 1% stocks, call this set Losers. You eliminate them from your portfolio. Let's say in the following year, each Loser becomes bankrupt. Now what? You need to find the next set of Losers. The logic is certainly appea...
by Wagnerjb
Tue Feb 24, 2015 8:51 am
 
Forum: Investing - Theory, News & General
Topic: The Distribution of Individual Stock Returns, 1983-2006
Replies: 20
Views: 1739

Re: Why don't I see more people arguing for a world portfoli

When I see a lot of people list their portfolios I notice that a lot of it is US-heavy. However US does not make up the most market capitalization from a worldwide perspective. So why is this the case? About 80% of Americans don't own a passport and have never been outside the USA. They have a very...
by Wagnerjb
Fri Feb 20, 2015 10:56 am
 
Forum: Investing - Help with Personal Investments
Topic: Why don't I see more people arguing for a world portfolio?
Replies: 41
Views: 2814

Re: What can you take out UTMA money for?

If I were you, I'd ask the kid if they want to spend the money on that item. After all, it is their money. I respectfully disagree. YOU are the custodian, and there is a reason for that. You are an adult, capable of reasoned financial decisions. (And....YOU funded the account with an intent that yo...
by Wagnerjb
Fri Feb 20, 2015 7:52 am
 
Forum: Investing - Help with Personal Investments
Topic: What can you take out UTMA money for?
Replies: 10
Views: 844

Re: "Couch Potato investing wins yet again"

Just another article on simple and low costs. http://www.chron.com/business/burns/article/Couch-Potato-investing-wins-yet-again-6086164.php I think we all agree that low costs is a clear winner. Where does the article indicate that a simple portfolio is superior to a more complex that incorporates ...
by Wagnerjb
Wed Feb 18, 2015 12:57 pm
 
Forum: Investing - Theory, News & General
Topic: "Couch Potato investing wins yet again"
Replies: 2
Views: 1079

Re: Short Sale and Long Stock combination

Divorce agreement defines 'taxable income' as income that produces any taxes due to IRS (greater than zero). For example, this year I am not paying any taxes because line 37 (AGI) is $47,000 for me (all QDI and LTCG income), AND NO ALIMONY ($12000)! Have you explored all possible ways to reduce you...
by Wagnerjb
Tue Feb 17, 2015 10:32 am
 
Forum: Investing - Help with Personal Investments
Topic: Short Sale and Long Stock combination
Replies: 22
Views: 969

Re: Short Sale and Long Stock combination

Andy, Thank for trying to figure this out with me. If I had bought the XYZ stock in my IRA account within 30 days of incurring the loss from the short sale in taxable account I would have had a wash sale. However, in my case, I already had the XYZ stock in IRA account sitting for four months (befor...
by Wagnerjb
Tue Feb 17, 2015 10:27 am
 
Forum: Investing - Help with Personal Investments
Topic: Short Sale and Long Stock combination
Replies: 22
Views: 969

Re: Short Sale and Long Stock combination

Andy, if the stock falls I will keep the short position (I will not cover) and I will not sell the long position in IRA either. I am hoping to do this with several stocks (paired), so that hit one stock that will fall. My goal is to find out if the transactions I described is legal and will produce...
by Wagnerjb
Mon Feb 16, 2015 5:12 pm
 
Forum: Investing - Help with Personal Investments
Topic: Short Sale and Long Stock combination
Replies: 22
Views: 969

Re: Short Sale and Long Stock combination

Andy, if the stock falls I will keep the short position (I will not cover) and I will not sell the long position in IRA either. I am hoping to do this with several stocks (paired), so that hit one stock that will fall. My goal is to find out if the transactions I described is legal and will produce...
by Wagnerjb
Mon Feb 16, 2015 12:00 pm
 
Forum: Investing - Help with Personal Investments
Topic: Short Sale and Long Stock combination
Replies: 22
Views: 969

Re: An Individual Stock Question Or Two

And if Apple, for example, is "moving the needle" significantly in the 30 stock portfolio; how much more risk is there in the 30 stock portfolio compared to the index. Thanks in advance. The link that BPP provided has a study by Surz & Price. They found that a typical 30-stock portfol...
by Wagnerjb
Mon Feb 16, 2015 8:49 am
 
Forum: Investing - Theory, News & General
Topic: An Individual Stock Question Or Two
Replies: 14
Views: 915

Re: Short Sale and Long Stock combination

I buy $40000 worth of the XYZ stock in my IRA account. Next day I short sell $40000 worth of the XYZ stock in my regular brokerage account (non-IRA). Both transactions have the same number of XYZ shares. Four months later (when I see that XYZ stock went up 25%) I sell the XYZ shares for $50000 in m...
by Wagnerjb
Mon Feb 16, 2015 8:42 am
 
Forum: Investing - Help with Personal Investments
Topic: Short Sale and Long Stock combination
Replies: 22
Views: 969

Re: 5.6% stable value fund - what allocation?

We had similar "bargain rates" in our 401k plan back in the 1980's. The year I started (1983) the rate in the Stable Value fund was 16.6%. I think I put 100% into the Stable Value fund, and did so for several years as the rates slowly declined. The risk (however small) takes on a different...
by Wagnerjb
Sun Feb 15, 2015 9:34 am
 
Forum: Investing - Theory, News & General
Topic: 5.6% stable value fund - what allocation?
Replies: 29
Views: 2525

Re: TIAA-CREF dramatically increasing Expense Ratios

Apparently this has already been discussed in another topic, and I got my facts wrong about the Tiers and what they represent: https://www.bogleheads.org/forum/viewtopic.php?f=10&t=156667 I apologize, but I did search on TIAA before posting a new thread and did not see this discussion. Does tha...
by Wagnerjb
Fri Feb 13, 2015 11:27 pm
 
Forum: Investing - Theory, News & General
Topic: TIAA-CREF dramatically increasing Expense Ratios
Replies: 72
Views: 4820

Re: Deferred Compensation

I chose 5 years in my company's deferred comp plan. As others have mentioned, taking a Lump Sum will drive you into a very high rate in that particular year - thus offsetting the tax benefits that you expected to receive. I chose the shorter time period (we could also go out 10 years or more) to lim...
by Wagnerjb
Thu Feb 12, 2015 1:20 pm
 
Forum: Investing - Help with Personal Investments
Topic: Deferred Compensation
Replies: 9
Views: 671

Re: Donate your appreciated merger stocks

+1 I prefer individual stocks for this very reason. I'd estimate that I generate at least 1%/yr in additional "tax alpha" by just tax-loss harvesting, ie. additional return on deferred gains. Probably more when I factor in arbitraging the favorable long-term and dividend rates with short-...
by Wagnerjb
Wed Feb 11, 2015 6:08 pm
 
Forum: Personal Finance (Not Investing)
Topic: Donate your appreciated merger stocks
Replies: 5
Views: 394

Re: Your lifetime earnings are probably determined in your 2

Well . . "Workers in the 95th percentile can expect a 230 percent increase over the same period. Those in the 99th percentile -- the doctors and lawyers and engineers -- will see earnings grow a whopping 1,450 percent." "But the bottom fifth of American earners, whose jobs are typica...
by Wagnerjb
Wed Feb 11, 2015 2:21 pm
 
Forum: Personal Finance (Not Investing)
Topic: Your lifetime earnings are probably determined in your 20s
Replies: 5
Views: 2023

Re: College savings costs / number

If you think college for a newborn 18 years from now will cost a minimum $100K per year ($400K), then that seems to require approximately $1000 a month for 18 years at 7% return? Unaffordable for most folks. Sick numbers. What's your prediction for 18 years from now if current costs are already as ...
by Wagnerjb
Tue Feb 10, 2015 9:49 pm
 
Forum: Personal Finance (Not Investing)
Topic: College savings costs / number
Replies: 120
Views: 6366

Re: Babysitting as earned income?

Is a 1099/W2 received? http://www.investopedia.com/ask/answers/09/ira-earned-income.asp - Ron It's more likely Self Employment income, whether under the table or above... Caution may be called for here. I just looked into this kind of situation (self employment income) for a relative this morning. ...
by Wagnerjb
Sun Feb 08, 2015 1:47 pm
 
Forum: Investing - Theory, News & General
Topic: Babysitting as earned income?
Replies: 6
Views: 464

Re: "Out-Bogleing [Jack] Bogle"

“If you can add tax alpha you’re out-Bogleing [Jack] Bogle.” http://www.riabiz.com/a/4952379384397824/wealthfronts-high-net-worth-cat-leaps-out-of-the-bag----keeping-it-one-robo-pivot-ahead-of-schwab This invites the question of the day: If transaction costs are essentially zero, why own an ETF or ...
by Wagnerjb
Sun Feb 08, 2015 10:56 am
 
Forum: Investing - Theory, News & General
Topic: "Out-Bogleing [Jack] Bogle"
Replies: 9
Views: 1732

Re: What Experts Say about Individual Stocks vs. Mutual Fund

If you create a passive portfolio of 70 stocks, you are still picking the 70 stocks out of over 3,300 or so available in the United States. I don't know how many tradable stocks there are in the UK but I suspect they are in the hundreds. Personally, I only use individual stocks for my Large Cap por...
by Wagnerjb
Sat Feb 07, 2015 6:39 pm
 
Forum: Investing - Theory, News & General
Topic: What Experts Say about Individual Stocks vs. Mutual Funds
Replies: 56
Views: 4828

Re: "Out-Bogleing [Jack] Bogle"

Its complicated enough with half a dozen etfs/index funds, let alone thousands of stocks. The tax-cost on ETFs is already relatively small. It will be interesting to see what happens at these robo-investors during the next bear market. From the article, Wealthfront is offering the opportunity to in...
by Wagnerjb
Fri Feb 06, 2015 9:02 pm
 
Forum: Investing - Theory, News & General
Topic: "Out-Bogleing [Jack] Bogle"
Replies: 9
Views: 1732

Re: What Experts Say about Individual Stocks vs. Mutual Fund

I have invested in individual stocks since about 1988 so that gives me 26 or so years experience. I have had carefully selected stocks like Lucent, Nortel, and AIG crash and burn. What you were doing was exactly what Taylor (correctly) is advising against - picking individual stocks. The discussion...
by Wagnerjb
Fri Feb 06, 2015 10:29 am
 
Forum: Investing - Theory, News & General
Topic: What Experts Say about Individual Stocks vs. Mutual Funds
Replies: 56
Views: 4828

Re: What Experts Say about Individual Stocks vs. Mutual Fund

Does anyone here allocate any part of their portfolio for Individual stocks? and have you had any succes? Just curious :happy I am using individual stocks for the US Large Cap portion of my equity portfolio. They are held in a taxable account. They are held passively and have ample diversification....
by Wagnerjb
Fri Feb 06, 2015 10:21 am
 
Forum: Investing - Theory, News & General
Topic: What Experts Say about Individual Stocks vs. Mutual Funds
Replies: 56
Views: 4828

Re: Tuition and Fees Deduction education tax benefit

btw.........since you're such a careful reader/thinker, would you care to check the OP's initial query re: tuition & fees deduction and basis. I think OP would probably appreciate another vote. It looks like you and I came to the same conclusion a few minutes apart....as soon as I posted my res...
by Wagnerjb
Thu Feb 05, 2015 6:38 pm
 
Forum: Personal Finance (Not Investing)
Topic: Tuition and Fees Deduction education tax benefit
Replies: 20
Views: 1502

Re: Tuition and Fees Deduction education tax benefit

Andy, Look at example 2 on page 58 again. It does take into account the 529 cost basis by virtue of calculating the taxable earnings amount proportionally by the amount of 529 basis used in AOTC. Huey: I understand the example on page 58; however it does not directly address the basis v. gain issue...
by Wagnerjb
Thu Feb 05, 2015 6:25 pm
 
Forum: Personal Finance (Not Investing)
Topic: Tuition and Fees Deduction education tax benefit
Replies: 20
Views: 1502

Re: Tuition and Fees Deduction education tax benefit

Hi folks, There are a few examples in Pub 970 and read than to find your answer. See page 57 of the Pub. Page 58 has an example of the AOT and an excess distribution from a 529 account. The example does not consider the basis and the gain separately, so I wonder if the guidance given to the OP is c...
by Wagnerjb
Thu Feb 05, 2015 3:48 pm
 
Forum: Personal Finance (Not Investing)
Topic: Tuition and Fees Deduction education tax benefit
Replies: 20
Views: 1502

Re: Tuition and Fees Deduction education tax benefit

That would be my interpretation also. The earnings got the benefit of not being taxed when you use them for QHEE so you can't use them again for the education deduction. The part that was contribution went in after tax so it didn't benefit directly so it can be used for the education deduction when...
by Wagnerjb
Thu Feb 05, 2015 9:12 am
 
Forum: Personal Finance (Not Investing)
Topic: Tuition and Fees Deduction education tax benefit
Replies: 20
Views: 1502

Re: What Experts Say about Individual Stocks vs. Mutual Fund

The dividend growth investors over at Seeking Alpha might take exception to this. :wink: Personally I am diversified in strategies as well. Passive Index funds and dividend growth stocks are both in my portfolio although it's been commission free Vanguard funds only since 11/14. There's more than o...
by Wagnerjb
Tue Feb 03, 2015 11:06 pm
 
Forum: Investing - Theory, News & General
Topic: What Experts Say about Individual Stocks vs. Mutual Funds
Replies: 56
Views: 4828

Re: Leverage NQDC to minimize LT capital gain tax impact?

I have done both what Dave has done (deferred to NQDC plan to offset stock option income) as well as what you are contemplating (deferring to offset income from capital gains). I consider it a very sound strategy, and it is clear that you have thought about the side effects and risks. You mention th...
by Wagnerjb
Fri Jan 30, 2015 10:48 am
 
Forum: Personal Finance (Not Investing)
Topic: Leverage NQDC to minimize LT capital gain tax impact?
Replies: 3
Views: 250

Re: what to do with 529 if you earn a scholarship?

529 Withdrawals to cover qualified expenses that are covered by scholarships are penalty free, but they are not tax-free. Withdrawals in those circumstances are taxed as ordinary income. I agree that the penalty does not apply, but I don't think the entire withdrawal is taxed as ordinary income. Ju...
by Wagnerjb
Fri Jan 30, 2015 10:30 am
 
Forum: Investing - Help with Personal Investments
Topic: what to do with 529 if you earn a scholarship?
Replies: 22
Views: 2059

Re: Efficient markets: luck v. skill

And how can pricing not be perfect if they perfectly reflect all relevant information?? and if the market pricing isn't perfect (what you say) how come he agrees "trying to beat the market is an exercise in futility"? You seem to be struggling with the difference between "perfectly e...
by Wagnerjb
Thu Jan 29, 2015 9:42 pm
 
Forum: Investing - Theory, News & General
Topic: Efficient markets: luck v. skill
Replies: 37
Views: 2636

Re: AOTC versus 529 plan [American Opportunity Tax Credit]

A technical correction is needed to section 530(d)(4) to clarify that the 10-percent additional tax should not be imposed in cases where a distribution (although used to pay for qualified higher education expenses) is includible in gross income because the taxpayer elects the HOPE or Lifetime Learn...
by Wagnerjb
Thu Jan 29, 2015 8:25 pm
 
Forum: Personal Finance (Not Investing)
Topic: AOTC versus 529 plan [American Opportunity Tax Credit]
Replies: 46
Views: 3347

Re: High Expense Funds vs Vanguard: No Difference?

The administrators of a 401k plan "choose" active mutual funds (to offer in your plan) based on their recent success and popularity. It shouldn't come as a surprise that they tend to have performed well. I would not expect any outperformance to continue going forward. Of course, any one fu...
by Wagnerjb
Wed Jan 28, 2015 3:41 pm
 
Forum: Investing - Theory, News & General
Topic: High Expense Funds vs Vanguard: No Difference?
Replies: 37
Views: 2735

Re: Renaissance tech vs EMH

I think the correct choice for retail investors is to invest in index funds and that recommendation has absolutely nothing to do with the EMH. Index funds just allow the investor to "lock in" the market average return (which they deem acceptable) with virtually no work whatsoever. It is a...
by Wagnerjb
Wed Jan 28, 2015 8:55 am
 
Forum: Investing - Theory, News & General
Topic: Renaissance tech vs EMH
Replies: 37
Views: 1897

Re: Question on investing/ personal finance newsletters....

Anybody who knows the secret to fabulous investing results will borrow all they can, invest using the secret, and become a billionaire. Anybody who doesn't but is a great salesperson will consider whether selling newsletters is the best means to become a billionaire without the secret, but usually ...
by Wagnerjb
Tue Jan 27, 2015 8:54 am
 
Forum: Investing - Theory, News & General
Topic: Question on investing/ personal finance newsletters....
Replies: 7
Views: 600

Re: Efficient markets: luck v. skill

My mistake. When the consequence of the hypothesis true implies one cannot beat the average over time, then it is found individuals can (regardless of implication to the average investor)... shouldn't we come up with a new description that fits reality, rather than trying to sculpt reality in a way...
by Wagnerjb
Mon Jan 26, 2015 10:57 pm
 
Forum: Investing - Theory, News & General
Topic: Efficient markets: luck v. skill
Replies: 37
Views: 2636

Re: 40 years of IRA and 401k Contributions

We started in earnest in 1987. The OP's numbers make sense. I wish we had gotten 10% return, but we didn't. Also some years, one of us could not contribute the maximum due to HCE issues. And of course there were many years of high-fee plans with some front-end loads for one of us. I started trackin...
by Wagnerjb
Mon Jan 26, 2015 9:04 pm
 
Forum: Investing - Theory, News & General
Topic: 40 years of IRA and 401k Contributions
Replies: 18
Views: 2305

Re: 40 years of IRA and 401k Contributions

If one started investing when the first IRA started up to the the maximum then filled up a 401k when that started in 1987 you may have done ok. I ran the numbers without catch-up contributions and took a wild guess at a rate. You could be just north of a million. If you started in the early 1980's ...
by Wagnerjb
Mon Jan 26, 2015 7:21 pm
 
Forum: Investing - Theory, News & General
Topic: 40 years of IRA and 401k Contributions
Replies: 18
Views: 2305

Re: $1 and $2 foreign tax paid - file? refundable credit?

They can carry their unused foreign tax credits back one year and forward 10 years under Internal Revenue Code Section 904(c). So if they can't use the credit for the current year or the previous year, they may be able to use the credit at some point during the next 10 years. Whether it's worth the...
by Wagnerjb
Sun Jan 25, 2015 1:50 pm
 
Forum: Personal Finance (Not Investing)
Topic: $1 and $2 foreign tax paid - file? refundable credit?
Replies: 6
Views: 597

Re: AOTC versus 529 plan [American Opportunity Tax Credit]

Jared: thank you for the tremendous reply to my questions. I can see that you put a considerable amount of effort and research into it, and I sincerely appreciate that. Section 529 is silent regarding whether distributions must be made from a section 529 account in the same tax year as QHEEs were pa...
by Wagnerjb
Sun Jan 25, 2015 11:35 am
 
Forum: Personal Finance (Not Investing)
Topic: AOTC versus 529 plan [American Opportunity Tax Credit]
Replies: 46
Views: 3347

Re: Efficient markets: luck v. skill

Your last paragraph again doesn't mean much to the fundamental question of can it be done . "Can it be done" and "can I pay someone to do it for me and still come out ahead" are different questions. I agree. But the two answers have very different implications. If we determine t...
by Wagnerjb
Fri Jan 23, 2015 3:53 pm
 
Forum: Investing - Theory, News & General
Topic: Efficient markets: luck v. skill
Replies: 37
Views: 2636

Re: AOTC versus 529 plan [American Opportunity Tax Credit]

Actually, another way to think of a taxable account for educational expenses is that it has 2 income components: (1) Annual dividends that parents can use now to pay for things for the kids such at music lessons, laptops, sports activities, and (2) tax-deferred unrealized capital gains. The capital...
by Wagnerjb
Fri Jan 23, 2015 11:04 am
 
Forum: Personal Finance (Not Investing)
Topic: AOTC versus 529 plan [American Opportunity Tax Credit]
Replies: 46
Views: 3347

Re: AOTC versus 529 plan [American Opportunity Tax Credit]

Great question Andy. Unfortunately, I don't have a definitive answer. Section 529 is silent regarding the timing of distributions. I doubt the intent was to allow the reimbursement of prior year expenses. The IRS is certainly aware of the potential for abuse and made it clear in Notice 2008-17. See...
by Wagnerjb
Fri Jan 23, 2015 10:57 am
 
Forum: Personal Finance (Not Investing)
Topic: AOTC versus 529 plan [American Opportunity Tax Credit]
Replies: 46
Views: 3347

Re: Efficient markets: luck v. skill

In games of true luck (gambling) where we are confident that the outcomes are random, we still find a few big winners over time. We also find a few big winners in active trading of the stock market. Are the results of active investing just luck? Before you start, do you know which gambler will be t...
by Wagnerjb
Fri Jan 23, 2015 10:25 am
 
Forum: Investing - Theory, News & General
Topic: Efficient markets: luck v. skill
Replies: 37
Views: 2636

Re: Efficient markets: luck v. skill

Nor have we found a manager that can consistently and predictably beat the market. Best wishes. Sure, we have. Jim Simons, for sure, Edward Thorpe, and probably Buffet as well. We are trying to distinguish luck from skill. In games of true luck (gambling) where we are confident that the outcomes ar...
by Wagnerjb
Fri Jan 23, 2015 10:00 am
 
Forum: Investing - Theory, News & General
Topic: Efficient markets: luck v. skill
Replies: 37
Views: 2636

Re: Efficient markets: luck v. skill

I liken the argument of considering the EMH as true until proven wrong, along the same line of considering unicorns exist until proven they don't. I liken considering EMH as true along the same lines as considering that UFOs don't exist. Logic says that EMH is true and it also says that UFOs don't ...
by Wagnerjb
Thu Jan 22, 2015 10:44 pm
 
Forum: Investing - Theory, News & General
Topic: Efficient markets: luck v. skill
Replies: 37
Views: 2636

Re: AOTC versus 529 plan [American Opportunity Tax Credit]

Although not authoritative, see page 59 of the 2013 IRS Publication 970 for the easy to read version: Exceptions. The 10% additional tax does not apply to distributions: ... 5. Included in income only because the qualified education expenses were taken into account in determining the American oppor...
by Wagnerjb
Thu Jan 22, 2015 3:03 pm
 
Forum: Personal Finance (Not Investing)
Topic: AOTC versus 529 plan [American Opportunity Tax Credit]
Replies: 46
Views: 3347

Re: AOTC versus 529 plan [American Opportunity Tax Credit]

I am disagreeing with livesoft's original statement that 529 plan withdrawals are not eligible for AOTC treatment. They are eligible for AOC treatment, but the amount used to compute the AOC will reduce the QHEE to offset the 529 distributions. I agree that you may want to withdraw less than 100% o...
by Wagnerjb
Thu Jan 22, 2015 11:40 am
 
Forum: Personal Finance (Not Investing)
Topic: AOTC versus 529 plan [American Opportunity Tax Credit]
Replies: 46
Views: 3347

Re: Does securities lending matter more than expense ratios?

Again in the direction the brokers do these trades from POV of retail investor you're only exposed to the borrowing broker if the stock rises in value relative to the collateral. What plausible scenario is there where short term US treasury securities are suddenly seriously impaired in value and st...
by Wagnerjb
Thu Jan 22, 2015 10:59 am
 
Forum: Investing - Theory, News & General
Topic: Does securities lending matter more than expense ratios?
Replies: 29
Views: 1914

Re: AOTC versus 529 plan [American Opportunity Tax Credit]

But no double-dipping so payments made with 529 plan withdrawals are not eligible for AOTC treatment. So we need to use 529 plan withdrawals for all but $2,000 a year of QHEE in order to get the first tier of the AOTC. Not necessarily. The amount of qualified higher education expenses available to ...
by Wagnerjb
Thu Jan 22, 2015 9:27 am
 
Forum: Personal Finance (Not Investing)
Topic: AOTC versus 529 plan [American Opportunity Tax Credit]
Replies: 46
Views: 3347

Re: Does securities lending matter more than expense ratios?

I'm pretty certain the collateral is something highly liquid such as a Treasury security Sure....it is viewed as "highly liquid" until one day it suddenly isn't. Like holding Swiss currency......until last week. Obviously, the risk is very small and it will take a "black swan" e...
by Wagnerjb
Wed Jan 21, 2015 4:39 pm
 
Forum: Investing - Theory, News & General
Topic: Does securities lending matter more than expense ratios?
Replies: 29
Views: 1914
Next

Return to advanced search