Search found 14907 matches

by grabiner
Wed Jul 01, 2015 8:43 pm
Forum: Investing - Help with Personal Investments
Topic: O(hio)PERS vs ARP retirement plans
Replies: 2
Views: 204

Re: O(hio)PERS vs ARP retirement plans

Welcome to the forum! The main decision you have to make is whether you expect to stay at Ohio State. The defined benefit plan is excellent if you have a long career there. If you leave mid-career, you will get a small benefit at retirement age, but it will be eroded by inflation; therefore, a defin...
by grabiner
Wed Jul 01, 2015 8:08 pm
Forum: Investing - Help with Personal Investments
Topic: Intermediate Term Bond Funds Index vs. Investment-Grade
Replies: 9
Views: 886

Re: Intermediate Term Bond Funds Index vs. Investment-Grade

Need a bond fund in taxable to put in some cash that is sitting in MMF. Intermediate term seems right. I imagine either one will be suitable. ' What is your tax bracket? If it is 28% or higher, or 25% and there is a fund for your state, you probably want a muni fund; you will probably get a higher ...
by grabiner
Wed Jul 01, 2015 8:04 pm
Forum: Investing - Help with Personal Investments
Topic: Bond Fund Dividends
Replies: 7
Views: 936

Re: Bond Fund Dividends

As interest rates go up, the value of existing bonds goes down. Interest payments (dividends) in a bond mutual fund are paid based on the value of the bonds, so it can take a while before the increasing interest payments catch up to the decreasing value of the bonds on which the interest is calcula...
by grabiner
Wed Jul 01, 2015 7:59 pm
Forum: Investing - Help with Personal Investments
Topic: Very Low Volume - Should I Avoid These ETFs?
Replies: 12
Views: 910

Re: Very Low Volume - Should I Avoid These ETFs?

livesoft wrote:
pt32 wrote:
livesoft wrote:Low volume ETFs have a tendency to fold up and close

What would happen in that case?

The sponsor sells your shares for you and gives you the money.


And a taxable capital gain (unless you held the ETF in a tax-sheltered account such as an IRA).
by grabiner
Wed Jul 01, 2015 7:57 pm
Forum: Investing - Help with Personal Investments
Topic: Pick One of Three! Vanguard Balanced Funds
Replies: 16
Views: 1531

Re: Pick One of Three! Vanguard Balanced Funds

I prefer LS Moderate Growth for better diversification; it holds international stocks and international bonds. Wellington is a fine fund but has very little in international. But any of the three are fine. Wellington will generate some capital gains, but in your 15% tax bracket, there won't be any t...
by grabiner
Wed Jul 01, 2015 7:52 pm
Forum: Investing - Help with Personal Investments
Topic: Tax Loss Harvesting
Replies: 22
Views: 1124

Re: Tax Loss Harvesting

Let's say I get a $8,800 in short term loss. If I realize that, then switch back into a different fund. Then I have $20K in capital gains in my taxable account...where half is long term gains. Assuming a 25% fed tax bracket and 7% state bracket. How does that work? Losses offset other gains of the ...
by grabiner
Tue Jun 30, 2015 10:39 pm
Forum: Investing - Theory, News & General
Topic: Why not Vanguard tax managed mutual funds ?
Replies: 13
Views: 1973

Re: Why not Vanguard tax managed mutual funds ?

As far as Vanguard changing the fund out from under you, I would say that as an investor in VTMGX, that used to be the tax-managed int'l fund, it really didn't change much more than in descriptive name. First, the merger was not a taxable event for investors in VTMGX. Second, I don't think there we...
by grabiner
Mon Jun 29, 2015 10:07 pm
Forum: Investing - Help with Personal Investments
Topic: What happens when Admiral Shares drop below $50K?
Replies: 20
Views: 2889

Re: What happens when Admiral Shares drop below $50K?

It does happen. I sold a lot of Admiral shares to harvest a loss in 2008, and didn't put the proceeds back into the same fund; my balance at the 2009 market bottom was about 1/3 of the Admiral threshold in that fund. Vanguard sent me a note that I would be downgraded unless I got back to the Admira...
by grabiner
Mon Jun 29, 2015 9:47 pm
Forum: Investing - Theory, News & General
Topic: Why not Vanguard tax managed mutual funds ?
Replies: 13
Views: 1973

Re: Why not Vanguard tax managed mutual funds ?

Because Vanguard does NOT believe in long term investing and will change these funds over time as it sees fit - as a former long-term investor in the now dead TM International (it was changed into a regular index fund). I cannot suggest strongly enough to use ETF's in taxable accounts, so your not ...
by grabiner
Mon Jun 29, 2015 9:37 pm
Forum: Investing - Help with Personal Investments
Topic: Should I sell muni funds or Wellington
Replies: 9
Views: 1439

Re: Should I sell muni funds or Wellington

You probably don't want to hold both munis and Wellington in your taxable account. If you are in a high tax bracket, you want munis for your taxable bond holding, and you don't want a stock fund which generates taxable capital gains such as Wellington does. If you are in a 15% or lower bracket, you ...
by grabiner
Mon Jun 29, 2015 9:31 pm
Forum: Investing - Help with Personal Investments
Topic: Newbie Q: VGTSX Admiral Share return lower than Investor Share?
Replies: 4
Views: 571

Re: Newbie Q: VGTSX Admiral Share return lower than Investor Share?

The difference between share classes may be the result of rounding, because share prices are calculated to the nearest penny. If Admiral shares happen to be priced at twice as much as Investor shares, there might be a day that Investor shares go from 10.004 to 10.006, which rounds to 10.00 becoming ...
by grabiner
Mon Jun 29, 2015 9:27 pm
Forum: Investing - Help with Personal Investments
Topic: What happens when Admiral Shares drop below $50K?
Replies: 20
Views: 2889

Re: What happens when Admiral Shares drop below $50K?

I think knocking you off Admiral status for dropping below the minimum is something they reserve the right to do, but rarely if ever do. https://personal.vanguard.com/us/content/Funds/FundsVGFundsWhatAreAdmiralSharesJSP.jsp If the balance in an Admiral Shares account drops below the minimum, Vangua...
by grabiner
Mon Jun 29, 2015 9:15 pm
Forum: Personal Finance (Not Investing)
Topic: Can I transfer a mastercard account to a different card?
Replies: 11
Views: 990

Re: Can I transfer a mastercard account to a different card?

Thanks that's great to know. So is the, "Don't close your cards, it hurts your credit," line overplayed as a scare tactic to get consumers to leave credit cards open? It's just an oversimplified understanding of how age of accounts matters and is utilized by the FICO scoring models. Some ...
by grabiner
Mon Jun 29, 2015 9:07 pm
Forum: Investing - Theory, News & General
Topic: Why not Vanguard tax managed mutual funds ?
Replies: 13
Views: 1973

Re: Why not Vanguard tax managed mutual funds ?

Agreed, Vanguard index funds are very tax efficient, as I mentioned in the paragraph after the one you quoted. The tax efficiency is not because they are different share classes of the ETFs but because the size of the funds enable liquidity needs to be met generally without having to sell securitie...
by grabiner
Mon Jun 29, 2015 9:02 pm
Forum: Investing - Theory, News & General
Topic: Thoughts on Fixed-Maturity Bond Funds?
Replies: 29
Views: 2540

Re: Thoughts on Fixed-Maturity Bond Funds?

It's not an advantage to hold an old bond to maturity, otherwise buyers would be willing to pay more. This isn't only how bond pricing works, but how it has to work. I guess this is what I have some sort of mental block with. It seems paradoxical. I think what I need to do is work this out with rea...
by grabiner
Sun Jun 28, 2015 9:05 pm
Forum: Investing - Theory, News & General
Topic: fund placement
Replies: 28
Views: 1781

Re: fund placement

Ok cool. And I know I can fund for my wife. Can I put all 11000 in one account or did it have to be too separate Roth IRA IRAs are individual (this is what the I stands for), so you have to have separate accounts; the only way they can be merged is if one of you dies and leaves the account to the o...
by grabiner
Sun Jun 28, 2015 8:59 pm
Forum: Investing - Theory, News & General
Topic: Why not Vanguard tax managed mutual funds ?
Replies: 13
Views: 1973

Re: Why not Vanguard tax managed mutual funds ?

But I don't really like ETFs for the withdrawal phase in retirement (or for dollar-cost averaging). Every withdrawal is a brokered transaction, and you have to check premium or discount to NAV, check commissions, effectively pay half the bid-ask spread. Commissions may be free or acceptable today, ...
by grabiner
Sun Jun 28, 2015 8:53 am
Forum: Investing - Theory, News & General
Topic: Bogleheads are more aggressive...
Replies: 57
Views: 5945

Re: Bogleheads are more aggressive...

I would go with "smarter" and "richer". Most of the Bogleheads who post on these polls have been through bear markets, and already know how they react. I never recommend an allocation of more than 80% stock for an investor who hasn't already been through a bear market with a stoc...
by grabiner
Sun Jun 28, 2015 8:43 am
Forum: Investing - Theory, News & General
Topic: fund placement
Replies: 28
Views: 1781

Re: fund placement

And one last thing if I used the Roth and I put in 5500 and then it grows over the 5500i wouldn't pay a penalty right? It's only for what I contribute? If you put $5500 into a Roth IRA, you can withdraw that $5500 at any time with no tax or penalty. If the account grows beyond that level, you may o...
by grabiner
Sun Jun 28, 2015 8:32 am
Forum: Investing - Theory, News & General
Topic: Why not Vanguard tax managed mutual funds ?
Replies: 13
Views: 1973

Re: Why not Vanguard tax managed mutual funds ?

See Tax-managed fund comparison on the wiki. Tax-Managed Capital Appreciation is comparable to 500 Index, and 80% TM Capital Appreciation/20% TM Small-Cap is comparable to Total Stock Market Index. But with the development of ETFs, even the funds which are not explicitly tax-managed are very tax-eff...
by grabiner
Sun Jun 28, 2015 8:24 am
Forum: Investing - Help with Personal Investments
Topic: Risks of RMD Withdrawal From A Single Fund IRA
Replies: 40
Views: 2771

Re: Risks of RMD Withdrawal From A Single Fund IRA

An RMD is a non-event for the purposes of asset allocation. When you take an RMD, you move the money from one account (an IRA/401(k)/etc.) into another account (a taxable account). If you aren't spending the RMD, you can put the RMD back into the same fund, or a similar fund which is appropriate for...
by grabiner
Sun Jun 28, 2015 8:17 am
Forum: Investing - Help with Personal Investments
Topic: Where to Begin [Tax Efficient Mutual Funds for Some Inheritance]
Replies: 15
Views: 1316

Re: Tax Efficient Mutual Funds for Some Inheritance

Since you have access to the TIAA Traditional Annuity, that is probably the best place to hold your fixed income; unlike a conventional bond fund, it does not lose value when rates rise. (The ten-year withdrawal rule for RA/GRA accounts means that you are locked in to the old lower rates for a few y...
by grabiner
Sun Jun 28, 2015 8:09 am
Forum: Investing - Help with Personal Investments
Topic: No gain in 9 months of investment
Replies: 23
Views: 4305

Re: No gain in 9 months of investment

Did you count dividends in your returns? If you bought a fund for $10.00 per share, and it is currently worth $10.00 per share, you have a gain because you received dividends. If you reinvested those dividends in the same fund, you might have turned $10,000 (1000 shares worth $10) into $10,300 (1000...
by grabiner
Fri Jun 26, 2015 9:25 pm
Forum: Personal Finance (Not Investing)
Topic: Pay student loan off at 2.875%? - otherwise, 14 years to go
Replies: 52
Views: 4983

Re: Pay student loan off at 2.875%? - otherwise, 14 years to go

Wiki article link: Paying down loans versus investing Since you are considering paying off the 14-year loan all at once, that is equivalent to buying a bond portfolio with a 7-year duration. Is the interest deductible, and at what rate? If it is deductible at 25%, you can probably earn a bit more on...
by grabiner
Fri Jun 26, 2015 6:46 pm
Forum: Investing - Help with Personal Investments
Topic: Re-evaluating Managed Portfolio
Replies: 15
Views: 1864

Re: Re-evaluating Managed Portfolio

If you sell your taxable funds and increase your TSP contribution by an equal amount, you'll come out ahead in taxes. For example, if you are in a 25% tax bracket and sell $10,000 in stock with a $5000 basis, you will owe $750 tax on the capital gain, for a net gain of $9250. If you then contribute...
by grabiner
Fri Jun 26, 2015 6:39 pm
Forum: Investing - Help with Personal Investments
Topic: Advice for Tax Efficency & Asset Allocation
Replies: 4
Views: 581

Re: Advice for Tax Efficency & Asset Allocation

You are holding this money in case your parent needs the money, so this money should be allocated according to the parent's risk tolerance. However, from your point of view, it is all part of one portfolio; you aren't likely to fail to support your parent if this money runs out. Therefore, you could...
by grabiner
Thu Jun 25, 2015 9:55 pm
Forum: Investing - Theory, News & General
Topic: "Morningstar’s Active/Passive Barometer"
Replies: 1
Views: 459

Re: "Morningstar’s Active/Passive Barometer"

There are some errors in the data. For mid-cap growth, foreign large-blend, and intemediate-term bonds, the 10-year asset-weighted average of active funds outperforms all four quartiles, and the 10-year equal-weighted average underperforms all four, which are both impossible; in other categories, on...
by grabiner
Thu Jun 25, 2015 9:35 pm
Forum: Investing - Theory, News & General
Topic: Did 2008 change your investing strategy?
Replies: 58
Views: 4615

Re: Did 2008 change your investing strategy?

I changed my asset allocation after the 2000-2002 bear market. The change was to a more aggressive portfolio; I had 80% stocks in 2000, 85% in 2002, and 90% in 2004, because I now knew how I reacted to a bear market. I didn't change my asset allocation immediately after the 2007-2009 bear market, be...
by grabiner
Thu Jun 25, 2015 9:31 pm
Forum: Investing - Theory, News & General
Topic: Thoughts on Fixed-Maturity Bond Funds?
Replies: 29
Views: 2540

Re: Thoughts on Fixed-Maturity Bond Funds?

You can also simulate the fixed-maturity situation on your own, with conventional funds. Say that you have available a money-market fund, a short-term fund with a 2-year duration, an intermediate-term fund with a 5-year duration, and a long-term fund with a 10-year duration, and you have a 10-year i...
by grabiner
Thu Jun 25, 2015 9:20 pm
Forum: Investing - Help with Personal Investments
Topic: Vanguard ETF dividends?
Replies: 13
Views: 1393

Re: Vanguard ETF dividends?

Yep - I see they are out now. Sweet. Much better than the first quarter too. Maybe I am misunderstanding dividends. Why do you consider a higher dividend payout to be "sweet"? Doesn't that mean more taxes owed at the end of the year? It does mean more taxes owed, but it also means that I ...
by grabiner
Thu Jun 25, 2015 9:14 pm
Forum: Investing - Help with Personal Investments
Topic: Re-evaluating Managed Portfolio
Replies: 15
Views: 1864

Re: Re-evaluating Managed Portfolio

Edit: Yes, check to find out if you will still pay for deferred loads when selling your non -Class A funds. And then sell them anyway (unless a wait of a month will reduce the fee by 1%). You have already lost the deferred load on your B shares; it just hasn't been deducted from your account yet. I...
by grabiner
Thu Jun 25, 2015 7:57 pm
Forum: Investing - Help with Personal Investments
Topic: Advice for Tax Efficency & Asset Allocation
Replies: 4
Views: 581

Re: Advice for Tax Efficency & Asset Allocation

With only 15% stock, the only reasonable way to reduce risk is to shorten the bond duration. You might replace some of the NY Long-Term Tax-Exempt with Limited-Term Tax-Exempt; with equal amounts in long-term and short-term funds, you will pay state tax on less than half the dividend and have an int...
by grabiner
Thu Jun 25, 2015 7:51 pm
Forum: Investing - Help with Personal Investments
Topic: VBTLX tax-loss harvesting, similar funds?
Replies: 9
Views: 656

Re: VBTLX tax-loss harvesting, similar funds?

I have another question too. This would be a short-term loss. Which income taxed at what rate gets offset by the loss when selling VBTLX? I don't have *short term* gains this year unless dividends from other investments or interest payments from VBTLX count. If it offsets the interest payments or t...
by grabiner
Wed Jun 24, 2015 9:35 pm
Forum: Investing - Theory, News & General
Topic: What ratio are you stocks/bonds and how old are you?
Replies: 246
Views: 15328

Re: What ratio are you stocks/bonds and how old are you?

One final observation from the data so far: Not only are Bogleheads in all age groups today being much more aggressive in their stock allocations than Mr. Bogle's standard recommendation of "age in bonds," but older Bogleheads are, relatively speaking, being a bit more aggressive than you...
by grabiner
Wed Jun 24, 2015 9:21 pm
Forum: Personal Finance (Not Investing)
Topic: IRS Fraud [Understanding fraudulent returns]
Replies: 6
Views: 875

Re: IRS Fraud [Understanding fraudulent returns]

You can have a refund held up for reasons other than fraud; I have had it happen three times with state taxes (twice the state's error, and once my error in copying an intermediate number on my return but computing the right total tax). This is another reason to avoid getting a refund.
by grabiner
Wed Jun 24, 2015 9:15 pm
Forum: Personal Finance (Not Investing)
Topic: What credit should you get? (Ask me anything)
Replies: 52
Views: 5761

Re: What credit should you get? (Ask me anything)

About me: I fly often between LA and NY, mostly United. Good credit history. Pretty high spending and eat out a lot (i'm not an ideal boglehead). What would you recommend? Are you an elite-level frequent flyer on United? If not, a United card will give you one free checked bag when you fly, which m...
by grabiner
Wed Jun 24, 2015 8:53 pm
Forum: Investing - Theory, News & General
Topic: What ratio are you stocks/bonds and how old are you?
Replies: 246
Views: 15328

Re: What ratio are you stocks/bonds and how old are you?

Age 47, 98% stock counting my mortgage as a negative bond (which I do for asset allocation purposes), 88% not counting it. I also overweight small-cap, value, and emerging markets, so I am taking a bit more risk than even these numbers suggest. Yes, I know that I have one of the most aggressive port...
by grabiner
Wed Jun 24, 2015 8:49 pm
Forum: Investing - Theory, News & General
Topic: Vanguard Tax-Managed Small-Cap Fund
Replies: 15
Views: 1436

Re: Vanguard Tax-Managed Small-Cap Fund

Great thread. I thought I was the only one that used the Vanguard Tax-Managed Small-Cap Fund in a tax advantaged account, but I guess not. I bought the fund specifically because it tracks the S&P Small Cap 600. If you like the S&P 600, Vanguard's ETF VIOO tracks that index, and doesn't incu...
by grabiner
Wed Jun 24, 2015 8:46 pm
Forum: Investing - Theory, News & General
Topic: What was the 2008 crash like in real time?
Replies: 217
Views: 19334

Re: What was the 2008 crash like in real time?

There seems to be a paucity of people who rebalanced into equities to get back to their stated asset allocation during this time. Recalling the chart I posted earlier in this thread, equities were down 20% in 2008 before the drop in October and they were down more than that in October and again fro...
by grabiner
Wed Jun 24, 2015 8:18 pm
Forum: Investing - Help with Personal Investments
Topic: Transferring a Stock to Vanguard - Cost Basis accuracy
Replies: 10
Views: 920

Re: Transferring a Stock to Vanguard - Cost Basis accuracy

Does the 1099 from Vanguard even report cost basis information for non-covered shares. They don't have to and the IRS would ignore anything they do report. I would have understood that most brokers would not have any data on the 1099 in that case, but maybe some do as a convenience. Vanguard will r...
by grabiner
Wed Jun 24, 2015 8:14 pm
Forum: Investing - Help with Personal Investments
Topic: Only contribute to the match?
Replies: 12
Views: 1337

Re: Only contribute to the match?

@ruralavalon the only international stock that I have right now is in my Vanguard target 2060 fund which is 90/10 and 35% of the stock is international. My 401K does offer an S&P 500 index, how should I change my percentages with how I have the 401(K) spread out? The Target Retirement fund isn'...
by grabiner
Wed Jun 24, 2015 8:06 pm
Forum: Investing - Help with Personal Investments
Topic: uncertain future: pay off mortgage or continue to invest, or wait?
Replies: 11
Views: 1512

Re: uncertain future: pay off mortgage or continue to invest, or wait?

Will pay down half of the principle to reduce monthly mortgage a good option too? This won't even help unless you can get the lender to recast the mortgage. Normally, when you make extra payments on a fixed-rate mortgage, the monthly payment due doesn't change but the mortgage gets paid off faster....
by grabiner
Wed Jun 24, 2015 8:04 pm
Forum: Investing - Help with Personal Investments
Topic: Vanguard Total Bond Market ETF (BND) and Taxes
Replies: 17
Views: 1951

Re: Vanguard Total Bond Market ETF (BND) and Taxes

Long-term bonds have higher yields than short-term bonds (because investors demand higher yields as compensation for the greater interest-rate risk). Therefore, if 50% of your bonds are CA long-term and 50% are non-CA short-term, more than 50% of the interest on your bond portfolio is exempt from C...
by grabiner
Tue Jun 23, 2015 10:32 pm
Forum: Investing - Help with Personal Investments
Topic: Vanguard Total Bond Market ETF (BND) and Taxes
Replies: 17
Views: 1951

Re: Vanguard Total Bond Market ETF (BND) and Taxes

If your entire bond holding is in taxable, you might want half in CA Long-Term Tax-Exempt and half in Limited-Term Tax-Exempt. This will put only half your bonds in CA, with an intermediate duration, but more than half your bond interest will be exempt from CA state tax. Two questions: 1. Why do yo...
by grabiner
Tue Jun 23, 2015 9:40 pm
Forum: Investing - Help with Personal Investments
Topic: Need Advice on Rebalancing Equity Subclasses in Taxable Account
Replies: 13
Views: 541

Re: Need Advice on Rebalancing Equity Subclasses in Taxable Account

Here is what I have in my Investment Policy Statement, making a distinction between major asset classes (US stock, foreign stock, bonds, real estate) and subclasses (such as large-cap emerging markets). I will pay capital gains tax to rebalance in a taxable account only if a major asset class or su...
by grabiner
Tue Jun 23, 2015 9:00 pm
Forum: Investing - Theory, News & General
Topic: Wsj article today on reit investing
Replies: 34
Views: 5863

Re: Wsj article today on reit investing

What about the tax considerations on International REITs? I thought they were very tax-inefficient since you either hold them in taxable and get the foreign tax credit (while paying lots of foreign taxes) or you stick them in tax-advantaged, but now you don't get any tax credits. The lost foreign t...
by grabiner
Tue Jun 23, 2015 8:44 pm
Forum: Investing - Theory, News & General
Topic: The Other Side, part 2
Replies: 41
Views: 5615

Re: The Other Side, part 2

The dollar-cost averaging you are considering is not the choice most investors make. If you earn money to invest every year, you will invest it every year; while this is dollar-cost averaging, it is not a choice. If you have a large sum of money now, you might lump-sum it, or invest 10% every month ...
by grabiner
Tue Jun 23, 2015 8:41 pm
Forum: Investing - Help with Personal Investments
Topic: uncertain future: pay off mortgage or continue to invest, or wait?
Replies: 11
Views: 1512

Re: uncertain future: pay off mortgage or continue to invest, or wait?

I would recommend not paying off the mortgage until you are sure of your financial future. The taxable account has the advantage that it is liquid; if you need money, you can sell stock or bonds in that account. If you use that money to pay down the mortgage, you can't get it back easily. It may mak...
by grabiner
Tue Jun 23, 2015 8:36 pm
Forum: Investing - Help with Personal Investments
Topic: Vanguard Total Bond Market ETF (BND) and Taxes
Replies: 17
Views: 1951

Re: Vanguard Total Bond Market ETF (BND) and Taxes

Considering that I'm in the 33% tax bracket and live in California, what do you folks think of Vanguard's California Municipal Bond Fund (VCAIX)? After further research, I'm now thinking I should go with this bond fund. My only hesitation is that I won't be able to reach the $50,000 minimum for the...
by grabiner
Tue Jun 23, 2015 8:31 pm
Forum: Investing - Help with Personal Investments
Topic: Personal Injury Settlement...what to do with it?
Replies: 15
Views: 2454

Re: Personal Injury Settlement...what to do with it?

Now to the Emergency Fund: I had a follow-up surgery this past fall, and had to pay almost all of it out of pocket, aside from the discount from insurance, as our company deductible is $5000. We had to use most of our fund on paying that off. Is this a qualifying High Deductible Health Plan? If so,...

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