Search found 15570 matches

Return to advanced search

Re: Can I offset short & long term Cap Gains?

You might be better off using the loss this year against ordinary income and paying tax, if any, on the long term gain next year.
by dbr
Mon Mar 30, 2015 3:57 pm
 
Forum: Investing - Help with Personal Investments
Topic: Can I offset short & long term Cap Gains?
Replies: 3
Views: 227

Re: $1.5M in 401K. What to do with it at retirement?

Technically, if you mean what you say, the only investment available would be TIPS of no longer maturity than the length of time you are willing for the investment to stand. Remember that preserving principal in nominal terms still means your wealth is being eroded by inflation, which should hardly ...
by dbr
Mon Mar 30, 2015 3:43 pm
 
Forum: Investing - Help with Personal Investments
Topic: $1.5M in 401K. What to do with it at retirement?
Replies: 7
Views: 2106

Re: More XIRR Questions

I had a second grader correct me that the period of rotation of the earth is not 24 hours but 23 hours, 56 minutes, and 4 seconds (stellar).
by dbr
Mon Mar 30, 2015 3:17 pm
 
Forum: Investing - Theory, News & General
Topic: More XIRR Questions
Replies: 19
Views: 1460

Re: Best Way to Visualize Compounding

The Wizard wrote:Unfortunately the whole thing can only be made so simple and not simpler. How complicated it needs to be is a fine point.

Simpler shouldn't be the goal.
[/quote]

Indeed
by dbr
Mon Mar 30, 2015 3:13 pm
 
Forum: Investing - Theory, News & General
Topic: Best Way to Visualize Compounding
Replies: 39
Views: 2777

Re: Best Way to Visualize Compounding

From Vanguard :happy Clear as a bell :happy https://personal.vanguard.com/us/insights/saving-investing/power-of-compounding[/quote Clear as a bell but completely unrealistic and misleading. The market never looks like that. It has peaks and dips, sometimes major ones. If you want to be realistic, s...
by dbr
Mon Mar 30, 2015 3:12 pm
 
Forum: Investing - Theory, News & General
Topic: Best Way to Visualize Compounding
Replies: 39
Views: 2777

Re: Best Way to Visualize Compounding

A visual metaphor - compound interest is a tree-like structure where each node grows n- more branches. Simple interest then, just has one node for each branch, so it grows linearly. Of course, this is an exaggeration, but it is a way of picturing it, with your tree growing gigantic pretty darn quic...
by dbr
Mon Mar 30, 2015 3:06 pm
 
Forum: Investing - Theory, News & General
Topic: Best Way to Visualize Compounding
Replies: 39
Views: 2777

Re: Best Way to Visualize Compounding

I've whined before that "compounding" is only relevant for bank deposits, CDs, T-notes, etc. It's not an accurate model for stock funds or even bond funds. I would probably use M* charts of growth of $10,000 over selected time periods to make my points. I'd use total stock market and tota...
by dbr
Mon Mar 30, 2015 2:51 pm
 
Forum: Investing - Theory, News & General
Topic: Best Way to Visualize Compounding
Replies: 39
Views: 2777

Re: Schedule D/1099B/Form 8949 Question

ieee488, Thanks for your reply. Yes, capital gains were reinvested also. I need to include capital gains that were reinvested from 2006 to the day until I sold the fund (2014), right? If you are getting your data from a transactions history, reinvested dividends and capital gains would be in that l...
by dbr
Mon Mar 30, 2015 8:40 am
 
Forum: Personal Finance (Not Investing)
Topic: Schedule D/1099B/Form 8949 Question
Replies: 5
Views: 372

Re: Best Way to Visualize Compounding

Thank you for all the references and ideas. I'm just trying to help my community to do more than just keep it in savings when they are still young. I'll encourage them to go to Bogleheads.org to learn more. I agree that investment carries risk so that part is easily understood. That is why many jus...
by dbr
Mon Mar 30, 2015 7:55 am
 
Forum: Investing - Theory, News & General
Topic: Best Way to Visualize Compounding
Replies: 39
Views: 2777

Re: Best Way to Visualize Compounding

How about showing them this wiki article? Importance of saving early BTW, you can save any wiki article as a PDF file. Check the bottom left-side menu "Print/export". That is a pretty good article. I would think it would be helpful. One point of possible confusion is that the charts havin...
by dbr
Sun Mar 29, 2015 9:26 pm
 
Forum: Investing - Theory, News & General
Topic: Best Way to Visualize Compounding
Replies: 39
Views: 2777

Re: Implications of Marriage - she with debt and low income

To get to a more practical matter (and I am not a lawyer and this is not legal advice) isn't the point of a prenup to control where existing assets go if the partner with those assets dies or if there is a divorce? So the question is what ideas do you, the wealthy husband, have for the fate of your ...
by dbr
Sun Mar 29, 2015 9:23 pm
 
Forum: Personal Finance (Not Investing)
Topic: Implications of Marriage - she with debt and low income (WI)
Replies: 52
Views: 4298

Re: Best Way to Visualize Compounding

I'm trying to explain the effects of compounding to a group of folks so that they will be motivated to invest rather than keep them in cash. I searched on this forum for some intuitive visuals but didn't find one yet. Would you suggest the best visual? Thanks! I agree that compounding should not be...
by dbr
Sun Mar 29, 2015 7:42 pm
 
Forum: Investing - Theory, News & General
Topic: Best Way to Visualize Compounding
Replies: 39
Views: 2777

Re: Orbitz vs Expedia vs Delta

I am very surprised. Did you actually end up booking the $872 fare? Orbitz & other online travel agencies (OTAs) get "cached" data (not the latest updated availability/fare) for initial display. Once you go through more steps in the booking process, OTAs gets the latest data from the ...
by dbr
Sun Mar 29, 2015 7:05 pm
 
Forum: Personal Consumer Issues
Topic: Orbitz vs Expedia vs Delta
Replies: 13
Views: 1080

Re: More XIRR Questions

XIRR gives you the annualized rate of return. In the case of a period that is less than one year, as would be for YTD calculations, you need to adjust the XIRR output. It's relatively painless though: YTD = (1 + @XIRR)^(#days/365.25), where #days is the number of days thus far in the year and 365.2...
by dbr
Sun Mar 29, 2015 3:51 pm
 
Forum: Investing - Theory, News & General
Topic: More XIRR Questions
Replies: 19
Views: 1460

Re: Just completed my taxes... have some questions.

Read this: If You Are Self-Employed That, and what did the returns your accountant has been filing look like in previous years? It would be a good check on your return if what you have now doesn't look a lot like what you sent in before. Presumably this is not a new situation and you did sign those...
by dbr
Sun Mar 29, 2015 3:18 pm
 
Forum: Personal Finance (Not Investing)
Topic: Just completed my taxes... have some questions.
Replies: 14
Views: 1315

Re: Orbitz vs Expedia vs Delta

Of course, the exact same flight does not mean the exact same fare basis, etc. If you really want some insight into this particular fare comparison I would post at the site below with complete information regarding dates, flights, and fare class: http://www.flyertalk.com/forum/online-travel-booking-...
by dbr
Sun Mar 29, 2015 3:15 pm
 
Forum: Personal Consumer Issues
Topic: Orbitz vs Expedia vs Delta
Replies: 13
Views: 1080

Re: Is this a decent withdrawal strategy?

>You should never have to sell anything based on the numbers provided. If when the taxpayer does his taxes in Dec he finds out he can realize another $10k (made up, income eaten up by deductions) in capital gains without incurring any taxes why wouldn't he realize something. Tax rates will never be...
by dbr
Sun Mar 29, 2015 12:24 pm
 
Forum: Investing - Help with Personal Investments
Topic: Is this a decent withdrawal strategy?
Replies: 17
Views: 1530

Re: Is BND really safe?

I should add that a lot of this bond angst depends on using/misusing the word "safe." It sounds on first impression that being "safe" is some kind of obvious thing that can be engineered simply by making astute choices. In reality the concept is practically meaningless as there a...
by dbr
Sun Mar 29, 2015 9:35 am
 
Forum: Investing - Help with Personal Investments
Topic: Is BND really safe?
Replies: 12
Views: 1524

Re: Is BND really safe?

I should have added to my comment complete support for what nisi has to say just above.
by dbr
Sun Mar 29, 2015 9:10 am
 
Forum: Investing - Help with Personal Investments
Topic: Is BND really safe?
Replies: 12
Views: 1524

Re: Is this a decent withdrawal strategy?

All his money is in taxable, divided up between TSM, TISM and an intermediate term muni bond fund, 1/3 each.? I wonder about this asset allocation - pretty much any allocation appears to have an expectation of success of 100% with a 2% inflation adjusted withdrawal, but the average drawdowns vary c...
by dbr
Sun Mar 29, 2015 8:48 am
 
Forum: Investing - Help with Personal Investments
Topic: Is this a decent withdrawal strategy?
Replies: 17
Views: 1530

Re: Is BND really safe?

I will interpret your question more broadly. Presumably you are looking to move from an 80/20 to a 60/40 allocation, in order to diminish the risk of equities. Your options might include bonds, commodities, cash and real estate. Since cash and commodities have no inherent real return, bonds and rea...
by dbr
Sun Mar 29, 2015 8:45 am
 
Forum: Investing - Help with Personal Investments
Topic: Is BND really safe?
Replies: 12
Views: 1524

Re: Retirement calculation lies?

And this is why we don't often go into the difference between CAGR vs "average return" very often. I understood exactly what these posters are talking about, but 99% of the public would be clueless. It makes investing seem intimidating, scary, and complex, when it really isn't. Suffice it...
by dbr
Sat Mar 28, 2015 12:22 pm
 
Forum: Investing - Theory, News & General
Topic: Retirement calculation lies? [Geometric vs. arithmetic mean]
Replies: 44
Views: 4069

Re: Risk Questionnaires: How they work?

It is still an interesting question how a company arrives at a recommended asset allocation from the answers to one of those questionnaires. The answer might document how useless the result is.
by dbr
Sat Mar 28, 2015 11:58 am
 
Forum: Investing - Theory, News & General
Topic: Risk Questionnaires: How they work?
Replies: 18
Views: 1129

Re: Questioning the conventional logic on dividend reinvestm

Forgive me but if I may ask a question in this thread on tax liability on dividends that is related to the thread discussion - at least for me. I searched the forum and wiki without finding a simple answer to my question. Perhaps it is so simple that everyone else but me knows the answer. My questi...
by dbr
Sat Mar 28, 2015 11:46 am
 
Forum: Investing - Theory, News & General
Topic: Questioning the conventional logic on dividend reinvestment
Replies: 28
Views: 2675

Re: Retirement calculation lies?

sawhorse wrote:
Or is it? I don't know and am looking to you for your thoughts.


Don't expect the expected return. For the beginner to understand that concept is half the battle.
by dbr
Sat Mar 28, 2015 10:32 am
 
Forum: Investing - Theory, News & General
Topic: Retirement calculation lies? [Geometric vs. arithmetic mean]
Replies: 44
Views: 4069

Re: Retirement calculation lies?

The OP does not need a math lesson. Furthermore, while "lies" is a bit of hyperbole the OP's point that it isn't that simple is correct. There is a reasonable lesson to be taught that the effect of compounding must be understood and that there is good reason to invest earlier rather than l...
by dbr
Sat Mar 28, 2015 9:24 am
 
Forum: Investing - Theory, News & General
Topic: Retirement calculation lies? [Geometric vs. arithmetic mean]
Replies: 44
Views: 4069

Re: M*: No Vanguard Funds Among Its Top Seven Inter. Bond Fu

If you can't sleep at night because you are worried your bond index fund will underperform some suggested actively managed funds, then you could try switching and see if your sleep improves.
by dbr
Fri Mar 27, 2015 8:18 am
 
Forum: Investing - Help with Personal Investments
Topic: M*: No Vanguard Funds Among Its Top Seven Inter. Bond Funds
Replies: 16
Views: 2191

Re: International stock dividend cut. Why?

Unless international companies really have cut dividends recently, it might be better to label this thread "dividend variability" rather than "dividend cut."
by dbr
Thu Mar 26, 2015 4:56 pm
 
Forum: Investing - Theory, News & General
Topic: International stock "dividend variability" Why?
Replies: 37
Views: 2971

Re: Help me understand Vanguard Small-Cap Value (VSIAX)

Since a lot of people here understand their stock allocations using the M* nine-box description, one could look up how M* defines the borders between small, mid, and large. In any case one can take one's portfolio as a whole through M* x-ray and see the effect of more or less of a given fund. In fac...
by dbr
Thu Mar 26, 2015 4:53 pm
 
Forum: Investing - Help with Personal Investments
Topic: Help me understand Vanguard Small-Cap Value (VSIAX)
Replies: 8
Views: 872

Re: A Vanguard transfer issue... Thoughts?

One of the worst fails at CS is positive false information. That means that someone says something is definitely so when it is not. The preference is to not know or to say something may or may not work as desired. To that can be added making an effort to find out for sure.
by dbr
Thu Mar 26, 2015 3:23 pm
 
Forum: Investing - Help with Personal Investments
Topic: A Vanguard transfer issue... Thoughts?
Replies: 12
Views: 961

Re: Illiquid Assets

There must be an illiquidity premium but I'm not so sure it's always the buyer who reaps it. In stale markets it's whoever has the longer time horizon. If they are equally matched you tend to split the spread. One of the better times to harvest illiquidity premium is during a liquidity panic such a...
by dbr
Thu Mar 26, 2015 12:24 pm
 
Forum: Investing - Theory, News & General
Topic: Illiquid Assets
Replies: 46
Views: 4017

Re: One single investment in a taxable account

You have brought up an issue that is discussed here, wanting to have holdings that pay dividends rather than having to sell any shares to take money out. One of the arguments against this is that you have to pay the tax on the dividends whether you needed the distribution at that time or not. It's ...
by dbr
Wed Mar 25, 2015 7:55 am
 
Forum: Investing - Help with Personal Investments
Topic: One single investment in a taxable account
Replies: 10
Views: 1178

Re: Transition to retirement (passive income)

Fundamentally you saved that money by postponing consumption. Now you get to consume by spending that money. If what you are asking is how to spend the money and also keep it, that is a much trickier question to which the answer is the proverbial you can't have your cake and eat it too. If you are p...
by dbr
Tue Mar 24, 2015 4:49 pm
 
Forum: Investing - Help with Personal Investments
Topic: Transition to retirement (passive income)
Replies: 3
Views: 442

Re: Going over gift tax limits

Honestly, I think many people misunderstand the tax implications and believe that they will have to pay gift tax on anything over $14k. I know I did until I started reading Bogleheads. I suspect that's the source of all the concern about not exceeding the annual exclusion. This. I agree that is the...
by dbr
Tue Mar 24, 2015 4:21 pm
 
Forum: Personal Finance (Not Investing)
Topic: Going over gift tax limits
Replies: 20
Views: 1634

Re: Why Bonds With 20 Year Horizon?

So can you make the U.S. equities market drop 20% for me this year? I'd really appreciate it. US valuations do look a bit high. :D I can do that. But the deal you have to accept is after you buy in the market goes down another 50% and does not recover to the price you paid for forty years. How like...
by dbr
Tue Mar 24, 2015 4:12 pm
 
Forum: Investing - Theory, News & General
Topic: Why Bonds With 20 Year Horizon?
Replies: 72
Views: 5157

Re: Why Bonds With 20 Year Horizon?

Exactly. That is why anecdotes abound of people doing exactly that during stock downturns. This is also one of the factors in why the average investor falls far short in return from the theoretical return of the indices in which they are invested. The issue is important enough that Larry Swedroe inc...
by dbr
Tue Mar 24, 2015 1:18 pm
 
Forum: Investing - Theory, News & General
Topic: Why Bonds With 20 Year Horizon?
Replies: 72
Views: 5157

Re: 3 fund portfolio and dividend paying index funds

Concentrating your stock holdings to some degree in a subset of the total market is a departure from the fundamental philosophy of the three fund portfolio. It is one of the complications in worrying about investing that the three fund idea is designed to avoid. The same idea is not applied to the b...
by dbr
Tue Mar 24, 2015 1:11 pm
 
Forum: Investing - Theory, News & General
Topic: 3 fund portfolio and dividend paying index funds
Replies: 3
Views: 599

Re: Ending Fidelity managed account

I would recommend that you back up and go through the "getting started" process in the Wiki: https://www.bogleheads.org/wiki/Getting_started Generally speaking, picking funds is the last step in a process of formulating an investing plan that will come out of going through the various cons...
by dbr
Tue Mar 24, 2015 12:33 pm
 
Forum: Investing - Help with Personal Investments
Topic: Ending Fidelity managed account
Replies: 5
Views: 785

Re: 4 Fund Portolio without bonds

And the layman's summary translation is? Educate yourself on the fundamentals of investing but not by reading Merriman, at least not articles like that one. Indeed am trying to follow and be even more educated, standard deviation and Sharpe aside, is it that there is inherently more risk by deviati...
by dbr
Tue Mar 24, 2015 12:27 pm
 
Forum: Investing - Theory, News & General
Topic: 4 Fund Portolio without bonds
Replies: 35
Views: 2641

Re: Vanguard Screwed up 1099-B

Incorrect basis information from brokers for non-covered shares is meaningless and should be ignored. What you can't ignore is submitting the correct basis information on your tax return. Enter the correct numbers from your records. As far as I know the IRS does not even see, or at least does not re...
by dbr
Tue Mar 24, 2015 8:12 am
 
Forum: Personal Finance (Not Investing)
Topic: Vanguard [Messed up] 1099-B
Replies: 8
Views: 1564

Re: The one area I disagree with Jack

I generally agree with Bogle on this. I have been retired 8 years and am 64. Current portfolio is 100% equity because when I capitalize my pension it works out to about 60/40 equity to FI. Obviously I have a pretty high tolerance for risk. But a pension gives the same benefit as FI in the AA decisi...
by dbr
Tue Mar 24, 2015 7:44 am
 
Forum: Investing - Theory, News & General
Topic: The one area I disagree with Jack
Replies: 93
Views: 7324

Re: VanG Intermediate Term Bond Market Question

Would any of the bond experts here want to comment on what it might mean to be "diversified" in the bond market and why that would be desirable? That is to say, beyond holding a sufficient number of different bonds to avoid diversifiable risk of default or other hazards, is there a benefit...
by dbr
Tue Mar 24, 2015 7:36 am
 
Forum: Investing - Help with Personal Investments
Topic: VanG Intermediate Term Bond Market Question
Replies: 20
Views: 1831

Re: 4 Fund Portolio without bonds

airahcaz wrote:
And the layman's summary translation is?


Educate yourself on the fundamentals of investing but not by reading Merriman, at least not articles like that one.
by dbr
Tue Mar 24, 2015 7:20 am
 
Forum: Investing - Theory, News & General
Topic: 4 Fund Portolio without bonds
Replies: 35
Views: 2641

Re: Ending Fidelity managed account

You can call Fidelity and tell them you don't want a managed account and to set you up without. If they obfuscate or try to talk you out of it, an alternative is to set up a new account at a different company, perhaps Vanguard, that does not involve management fees and have the new account pull your...
by dbr
Tue Mar 24, 2015 6:16 am
 
Forum: Investing - Help with Personal Investments
Topic: Ending Fidelity managed account
Replies: 5
Views: 785

Re: Why allocate to bonds if receiving a Government pension?

Please see: http://www.bogleheads.org/forum/viewtopic.php?f=10&t=161696 It might be better to read two pages of discussion already written than write it again. This is a topic, treating pension as a bond, that comes up repeatedly on the forum. It is probably possible to find earlier discussions,...
by dbr
Mon Mar 23, 2015 9:47 pm
 
Forum: Investing - Help with Personal Investments
Topic: Why allocate to bonds if receiving a Government pension?
Replies: 3
Views: 550

Re: Passive Investing w/Vanguard

-for my taxes, do I need to something special initially or just wait till the end of the year and Vanguard will send me a form for my taxes? In a taxable account, you get the appropriate forms every year between oh, late January and mid February - if I recall correctly. And tax software will usuall...
by dbr
Mon Mar 23, 2015 4:51 pm
 
Forum: Investing - Help with Personal Investments
Topic: Passive Investing w/Vanguard
Replies: 9
Views: 1242

Re: The one area I disagree with Jack

I view much of the discussion in this thread as just different ways of framing things. Kevin While that is true to a degree, the imporant thing is to look at what the practical consequences of various framings actually are. There is a great deal of difference between looking more closely at a situa...
by dbr
Mon Mar 23, 2015 2:35 pm
 
Forum: Investing - Theory, News & General
Topic: The one area I disagree with Jack
Replies: 93
Views: 7324

Re: 403b Question

joetaf27 wrote:Should we stay away from that 5% upfront fee?


To be blunt, agreeing to pay a 5% fee upfront when there is any alternative is flat out stupid.
by dbr
Mon Mar 23, 2015 2:09 pm
 
Forum: Investing - Help with Personal Investments
Topic: 403b Question
Replies: 26
Views: 1868

Re: best income producing Vanguard fund?

Funds don't generate income. Investors take income by selling assets and withdrawing the cash. Whether the sale is direct by actually selling shares of something or "in effect" by spending instead of reinvesting dividends is immaterial. What portfolios are "best" to support withd...
by dbr
Mon Mar 23, 2015 2:07 pm
 
Forum: Investing - Help with Personal Investments
Topic: best income producing Vanguard fund?
Replies: 6
Views: 1349
Next

Return to advanced search