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Re: Credit card chip upgrade good idea??

My understanding is that the "chip + signature" gives up part of the security. The "chip + pin" is 2-factor authentication to use it (something you have + something you know). The "chip + signature" is basically the same 1-factor system we have now (something you have)...
by talzara
Mon Mar 03, 2014 8:39 pm
 
Forum: Personal Consumer Issues
Topic: Credit card chip upgrade good idea??
Replies: 45
Views: 1539

Re: The "Deceased" Stamp

That raises an interesting question. Suppose all your assets are held in non-probate TOD (transfer on death) or IRA accounts with named beneficiaries other than a spouse. While I think you have a moral obligation to use those funds to pay medical bills, what is the legal position? It depends on sta...
by talzara
Mon Mar 03, 2014 4:04 pm
 
Forum: Personal Consumer Issues
Topic: The "Deceased" Stamp
Replies: 10
Views: 1079

Re: The "Deceased" Stamp

In addition to the medical bills, what would happen to estate taxes (if the estate was large enough) and/or the final income tax return if everything was registered TOD, and the beneficiaries all received their inheritances? I think whoever signed the return would be on the hook for any taxes if he...
by talzara
Mon Mar 03, 2014 3:33 pm
 
Forum: Personal Consumer Issues
Topic: The "Deceased" Stamp
Replies: 10
Views: 1079

Re: The growing case against ETFs ARTICLE

Other way around you can convert MF shares to ETF without it being a taxable event. Right, and it's not just Admiral shares. You can convert Investor shares to ETFs as well. Vanguard could in principle offer an in-kind ETF-to-Admiral conversion. ETFs are just another share class, and Vanguard alrea...
by talzara
Mon Feb 24, 2014 3:37 am
 
Forum: Investing - Theory, News & General
Topic: The growing case against ETFs ARTICLE
Replies: 36
Views: 3805

Re: Did Schwab report the wrong basis? Tax consequences..

I have to question your terminology a little. ... Under the new rules, the which shares and the basis have been separated to a degree. You can't really use one word for both. Yes, I'm sorry, it is confusing. I'll try to be clearer. ⋅  If your account is set to use average cost, then the l...
by talzara
Sun Feb 23, 2014 10:18 pm
 
Forum: Personal Finance (Not Investing)
Topic: Did Schwab report the wrong basis? Tax consequences..
Replies: 20
Views: 708

Re: Did Schwab report the wrong basis? Tax consequences..

It's unfortunate the IRS won't simply trust me when I tell them what the basis is. Things would be a lot simpler and more profitable that way. Most of us at Bogleheads would have calculated the right cost basis. However, a lot of people simply lied about cost basis on their Schedule D, because the ...
by talzara
Sun Feb 23, 2014 7:20 pm
 
Forum: Personal Finance (Not Investing)
Topic: Did Schwab report the wrong basis? Tax consequences..
Replies: 20
Views: 708

Re: Did Schwab report the wrong basis? Tax consequences..

It appears that what Schwab allowed you to do was sell the shares you specifically identified, but kept the average basis. This seems a little off kilter, but it would have been exactly what would have happened if you had sold using specific ID after having sold some covered shares previously (when...
by talzara
Sun Feb 23, 2014 7:03 pm
 
Forum: Personal Finance (Not Investing)
Topic: Did Schwab report the wrong basis? Tax consequences..
Replies: 20
Views: 708

Re: Has anyone seen the Japanese Stock Market?

Don't forget this one. Imperial Russian bonds should see a slight bump at the extreme right of the graph. British holders of Imperial Russian debt received a partial recovery in the 1980s of 54.78 decimal pence on the pound, paid from frozen Imperial Russian assets in the UK. Of course, real perfor...
by talzara
Sun Feb 23, 2014 4:19 am
 
Forum: Investing - Theory, News & General
Topic: Has anyone seen the Japanese Stock Market?
Replies: 73
Views: 6268

Re: Emerging Markets

GDP is only indirectly related to stock market performance. Start with GDP, then move to corporate revenues, then corporate profit, then after-tax income, then to publicly-owned corporations, then to the free float. It's a long chain before you get to share in economic growth, as a public shareholde...
by talzara
Sat Feb 22, 2014 2:55 am
 
Forum: Investing - Theory, News & General
Topic: Emerging Markets
Replies: 15
Views: 2075

Re: When tax-efficient taxable investing isn't?

These ETFs are considered efficient because they have not distributed capital gains. But your tax drag was caused by dividends. There isn't too much they can do about dividends, except to ensure that the maximum percentage is qualified. I suppose you could buy Growth in taxable and Value in tax-adva...
by talzara
Tue Feb 18, 2014 5:03 am
 
Forum: Investing - Theory, News & General
Topic: When tax-efficient taxable investing isn't?
Replies: 51
Views: 3578

Re: Vanguard All-World FTSE ETF (investing from Europe)

All-World is capitalization-weighted. It does not rebalance for you. In case of a bubble in one country, it will simply keep growing as a share of the fund. There have been bubbles in the past, and there will continue to be bubbles in the future. Japan once accounted for over 40% of world stock mark...
by talzara
Tue Feb 18, 2014 3:55 am
 
Forum: Investing - Help with Personal Investments
Topic: Vanguard All-World FTSE ETF (investing from Europe)
Replies: 13
Views: 906

Re: Cross sell? Buying in taxable and selling same stock in

It's actually called wash trading . That may be why you're having difficulty finding information online. If you search for "wash trading," then you will find all sorts of information. For example: Definition of 'Wash Trading' The process of buying shares of a company through one broker whi...
by talzara
Sun Feb 16, 2014 12:28 pm
 
Forum: Investing - Help with Personal Investments
Topic: Cross sell? Buying in taxable and selling same stock in IRA
Replies: 25
Views: 1542

Re: I need an explanation of ownership of Vanguard Group

It is more of a figurative statement. The lower expense ratio can be thought of as getting to reinvest the profits that would otherwise have gone to an owner. But Vanguard operates at breakeven, and thus there is no actual profit to return to the individual funds. If you look at the annual report fo...
by talzara
Wed Feb 05, 2014 12:36 am
 
Forum: Investing - Theory, News & General
Topic: I need an explanation of ownership of Vanguard Group
Replies: 1
Views: 537

Re: Warren Buffett Books - for kids

The problem is that the two definitive biographies are both very long, probably too long for a fourth grader. (You did say your daughter was an advanced reader, but I don't know how she'd feel about an 800-page financial biography.) There are certainly shorter books that have been written about Buff...
by talzara
Thu Jan 30, 2014 4:09 am
 
Forum: Investing - Theory, News & General
Topic: Warren Buffett Books - for kids
Replies: 12
Views: 1040

Re: Vanguard Website not available

Not limited to Vanguard. There is a nationwide outage on AT&T U-verse.

http://www.lightreading.com/atandt-u-ve ... ding_gnews
by talzara
Mon Jan 27, 2014 2:06 pm
 
Forum: Personal Consumer Issues
Topic: Vanguard Website not available
Replies: 11
Views: 1085

Re: Money Magazine takes Boglehead approach?

I just flipped through this issue. The article endorses indexing in no uncertain terms: And indexing has won the argument. Only one in four actively managed U.S. stock funds has beaten this approach over the past five years, raising doubts about whether you need to sift through scores of funds to cr...
by talzara
Sat Jan 11, 2014 1:17 am
 
Forum: Investing - Theory, News & General
Topic: Money Magazine takes Boglehead approach?
Replies: 27
Views: 3249

Re: Permits for kitchen remodel

What exactly do you need permits for in a kitchen remodel? For example if you just do the countertops and the backsplash do you need permits? Countertops should not need any permits. However, in some locations, opening up the walls will require the utilities behind the wall to be brought up to curr...
by talzara
Fri Jan 10, 2014 3:31 am
 
Forum: Personal Consumer Issues
Topic: Permits for kitchen remodel
Replies: 17
Views: 1500

Re: 2013: a bad year for pimco

The secondary market for bonds is much less liquid and has much higher spreads than the stock market. That's why bond funds have to sample. Total replication simply isn't practical. The tracking error that Vanguard Total Bond experienced in 2002 is much less likely to occur today. The fund now holds...
by talzara
Fri Jan 10, 2014 2:06 am
 
Forum: Investing - Theory, News & General
Topic: 2013: a bad year for pimco
Replies: 26
Views: 2972

Re: Wish there was a time machine for windows

So currently I use image backup to backup the drives periodically, and file history daily. Now, I wonder if I can count on image backup being around. ... There are alternatives like Norton Ghost and Acronis Trueimage. I have actually used both over the years. I had bad experiences with Ghost some y...
by talzara
Fri Dec 27, 2013 12:58 pm
 
Forum: Personal Consumer Issues
Topic: Wish there was a time machine for windows
Replies: 5
Views: 622

Re: Just returned new laptop with Window 8.1

Not sure why you say it's getting harder when the Amazon link I provided appears to list nearly 4500 Win 7 laptops (187 pages of 24). Because it is. I said harder, not impossible. You're looking at Amazon, which conmingles the consumer and business lineup, and also includes previous years' models i...
by talzara
Thu Dec 26, 2013 11:42 pm
 
Forum: Personal Consumer Issues
Topic: Just returned new laptop with Window 8.1
Replies: 104
Views: 7827

Re: Just returned new laptop with Window 8.1

Windows 7 is getting harder to find in the consumer PC lineup. For example, on Amazon, only one of the top 20 currently bestselling laptops comes with Windows 7. It's still pretty easy to find Windows 7 on the business PC lineup. You'd be restricting your hardware choices quite a bit, though. That h...
by talzara
Thu Dec 26, 2013 11:17 pm
 
Forum: Personal Consumer Issues
Topic: Just returned new laptop with Window 8.1
Replies: 104
Views: 7827

Re: Theoretical best way to sell individual stock shares?

The usual way of doing this is to put in a limit order a few minutes before market close. You may get some slippage if it drops at the close, but you may also pick up some gains if it gains during the close. On average, it balances out. You could also consider buying Vanguard ETFs rather than mutual...
by talzara
Thu Dec 26, 2013 11:48 am
 
Forum: Investing - Theory, News & General
Topic: Theoretical best way to sell individual stock shares?
Replies: 12
Views: 743

Re: Columbia Acorn to Vanguard - 7% drop!?!

There are two types of cost basis here, and they are kept completely separate. First, the fund has a cost basis in the stocks that it purchased. When it sells shares, it realizes capital gains on the appreciation from its cost basis in the underlying securities. Second, you also have a cost basis in...
by talzara
Fri Dec 13, 2013 4:37 pm
 
Forum: Investing - Help with Personal Investments
Topic: Columbia Acorn to Vanguard - 7% drop!?!
Replies: 24
Views: 2176

Re: Who on here owned American Airlines Stock

I just don't understand why when two companies merge, the value of my holding in one company's stock could change that much (85%) immediately after the merge. It's not just a merger, but also a bankruptcy reorganization. You should be ecstatic that it didn't drop by 100%. That's what often happens ...
by talzara
Wed Dec 11, 2013 10:33 pm
 
Forum: Investing - Help with Personal Investments
Topic: Who on here owned American Airlines Stock
Replies: 20
Views: 1565

Re: Using quickbooks online

\Based on this information, buying a laptop that is over $500 doesn't make a lot of sense but finding one under $500 that runs windows or some other operating system is going to be tough. That's a very strange statement. It is extremely easy to find a laptop under $500 that runs Windows. There are ...
by talzara
Tue Dec 10, 2013 1:50 pm
 
Forum: Personal Consumer Issues
Topic: Using quickbooks online
Replies: 3
Views: 225

Re: Warren Buffett Market-Beating Skills Revealed

Berkshire was absolutely for sale in 1976 on the NYSE, listed as BRK. ... The ticker changed to BRK.A the 1990s, but the stock (as BRK) has been traded forever. Berkshire Hathway's current listing on the New York Stock Exchange only dates back to November 29, 1988. Its ticker symbol was BRK. It did...
by talzara
Sun Dec 08, 2013 6:38 pm
 
Forum: Investing - Theory, News & General
Topic: Warren Buffett Market-Beating Skills Revealed
Replies: 49
Views: 6177

Re: Lost brokerage statements/basis for taxes

With all that I can put together a pretty accurate, somewhat conservative estimate of the average cost basis (will be slightly understated), but I don't have anything to "show" that all dividends/CGs were reinvested and no shares were ever sold. Your tax returns will corroborate the fact ...
by talzara
Tue Dec 03, 2013 10:45 am
 
Forum: Personal Finance (Not Investing)
Topic: Lost brokerage statements/basis for taxes
Replies: 9
Views: 636

Re: Confused about margin

Interactive Brokers does not issue margin calls. They have a policy of forcibly liquidating your account as soon as the computer detects a margin violation. You do not get a chance to deposit more money. Margin is a great way to lock in your losses at the bottom of the market. It is this risk that m...
by talzara
Sun Dec 01, 2013 2:05 pm
 
Forum: Investing - Help with Personal Investments
Topic: Confused about margin
Replies: 23
Views: 1544

Re: How do I estimate '13 capital gains, interest, dividends

Mutual fund companies usually supply an estimate of the year-end distributions that they pay out. By adding these to the distributions already received year-to-date, you can get a better estimate of the total distributions. Dividends are often not included in the estimates, so you will still need to...
by talzara
Sat Nov 30, 2013 1:16 pm
 
Forum: Personal Finance (Not Investing)
Topic: How do I estimate '13 capital gains, interest, dividends?
Replies: 6
Views: 460

Re: Weird Tax Issue (Computing Cost Basis)

The broker is not required to maintain cost basis information for noncovered shares -- those acquired before either 2011 or 2012. Schwab maintains cost basis data on noncovered shares for your convenience only . When your sister sells those shares, Schwab will issue a Form 1099-B that lists them und...
by talzara
Wed Nov 27, 2013 7:30 pm
 
Forum: Personal Finance (Not Investing)
Topic: Weird Tax Issue (Computing Cost Basis)
Replies: 17
Views: 602

Re: I found a huge error in S&P 500 reported earnings today

(Issues tab) Why are there only 459 tickers listed? Shouldn't it be 500? That tab lists only actual earnings for Q3 2013. Companies with estimated earnings are included in other tabs, but not this one. For example, Abercrombie & Fitch ends its fiscal year in January. Thus, they haven't reported...
by talzara
Sat Nov 16, 2013 3:38 am
 
Forum: Investing - Theory, News & General
Topic: I found a huge error in S&P 500 reported earnings today
Replies: 14
Views: 1960

Re: Help me understand the math with #7?

For the 40 year old: =FV(.05, 26, -5000) you get $255,567.27(not $267,000 in the example above) If you specify no options, the FV function in Excel assumes that you make the payment at the end of each period. If you make the payment at the beginning of each period, you get much closer to the stated...
by talzara
Thu Oct 31, 2013 10:48 am
 
Forum: Investing - Theory, News & General
Topic: Forbes Column about Bogleheads
Replies: 32
Views: 4436

Re: Protective puts

Nassim Taleb believed that far out-of-the-money puts were underpriced. He made a bundle in 2008-2009. Problem is, he's been writing books about it, so more people are buying OOM puts and driving the price up. Meanwhile, Warren Buffett believed that long-term at-the-money European puts were overprice...
by talzara
Sat Oct 19, 2013 2:36 am
 
Forum: Investing - Help with Personal Investments
Topic: Protective puts
Replies: 21
Views: 1817

Re: Is BRK really now just an index fund?

One other factor is the absence of dividends with BRKB which makes owning brkb particularly desirable in taxable accounts. If, in fact, BRKB were nothing but an S&P index fund with dividends reinvested (but counted as unrealized capital gain instead of dividend income), it would still be very m...
by talzara
Wed Oct 16, 2013 1:54 am
 
Forum: Investing - Theory, News & General
Topic: Is BRK really now just an index fund?
Replies: 10
Views: 1200

Re: Gift tax question

There are two numbers here. There is an annual exclusion of $14,000 per recipient. There is also a lifetime exclusion of $5.25 million per donor, shared with the estate tax, stated as a $2,045,800 credit (the tax on $5.25 million). These amounts are adjusted for inflation each year. You gave a singl...
by talzara
Mon Oct 14, 2013 10:14 am
 
Forum: Personal Finance (Not Investing)
Topic: Gift tax question
Replies: 5
Views: 549

Re: dishwasher vs manual dish washing

Think about it: water that is hot enough to make a difference in terms of killing bacteria on your dishes would peel the skin off your hands. It is the soap, washing the grease off the dishes and carrying the bacteria away with it, that does the cleaning, not the water temperature. Same as washing ...
by talzara
Sat Oct 12, 2013 2:12 am
 
Forum: Personal Consumer Issues
Topic: dishwasher vs manual dish washing
Replies: 54
Views: 4030

Re: A Boglehead Running the Fed!

including an allocation to the firm’s first-ever fund, the Vanguard Index Trust 500 Portfolio. Was the 500 index the first fund, or the first VG index fund? The first fund that they launched. Vanguard started off in 1975 with the back-office work for the Wellington funds, excluding marketing . Thus...
by talzara
Fri Oct 11, 2013 2:11 am
 
Forum: Investing - Theory, News & General
Topic: A Boglehead Running the Fed!
Replies: 24
Views: 4062

Re: Characteristics US debt - Fixed/variable/inflation

After going through above I realized, SS/Medicare(additional savings loaned to budget in past ) is not accounted in 17 trillion. I was always under the impression that it was already counted in that 17 trillion! Am I wrong on this? The Social Security and Medicare Trust Funds should be accounted fo...
by talzara
Fri Oct 04, 2013 9:44 am
 
Forum: Investing - Theory, News & General
Topic: Characteristics US debt - Fixed/variable/inflation
Replies: 10
Views: 738

Re: Credit default swap question

Interesting and great explanation. It can take years for creditors to determine what their final recovery is on a bond default and it's often 30-40%. I wonder how it works for sellers of credit default swaps in the event of a default. Do they pay 100% and then gain the rights to whatever the recove...
by talzara
Tue Oct 01, 2013 10:59 pm
 
Forum: Investing - Theory, News & General
Topic: Credit default swap question
Replies: 4
Views: 429

Re: Credit default swap question

A bond yield is determined by the interest rate on a risk-free bond, plus the risk of default by the issuing entity. The risk-free interest rate can be approximated by buying a Treasury of identical duration, while the risk of default can be captured by selling a credit default swap on the entity th...
by talzara
Tue Oct 01, 2013 3:23 pm
 
Forum: Investing - Theory, News & General
Topic: Credit default swap question
Replies: 4
Views: 429

Re: Non-Transparent ETFs?

Closed-Ends Funds already exist. They're also actively-managed and traded on the stock exchange. The main difference would be that a non-transparent ETF could create and destroy shares. Closed-end funds usually trade at a discount to NAV, and occasionally at a premium. But the Authorized Participant...
by talzara
Mon Sep 30, 2013 11:17 am
 
Forum: Investing - Theory, News & General
Topic: Non-Transparent ETFs?
Replies: 2
Views: 465

Re: How Does [Estate Tax] "Portability" Work?

The IRS has recently released the estate tax filing statistics for 2012. Since estate tax returns are due 9-15 months after the decedent's passing, this corresponds roughly to the 2011 tax year. The predicted mountain of portability-only returns has completely failed to materialize. Very few estates...
by talzara
Sat Sep 21, 2013 12:12 pm
 
Forum: Personal Finance (Not Investing)
Topic: How Does [Estate Tax] "Portability" Work?
Replies: 21
Views: 1514

Re: smoke detectors?

In newer houses, interlocked hardwired detectors are required by code. Replacing them with battery-only detectors would mean that your house no longer meets code. Depending on how thorough the inspector is when you sell the house, you may have to pay for hardwired detectors anyway, regardless of you...
by talzara
Mon Aug 05, 2013 1:36 pm
 
Forum: Personal Consumer Issues
Topic: smoke detectors?
Replies: 9
Views: 893

Re: Matching TSM in 401K?

Vanguard now tracks the CRSP indexes for US stocks. Total Stock Market consists of 85% large-cap, 13% small-cap, and 2% micro-cap. (However, it may deviate by a few percent due to the bands used to reduce turnover.) Note that these are CRSP definitions of capitalization size, and are different from ...
by talzara
Mon Aug 05, 2013 2:25 am
 
Forum: Investing - Help with Personal Investments
Topic: Matching TSM in 401K?
Replies: 6
Views: 366

Re: Do Commodities Speculators Make Things Cost More?

I believe there is clear and convincing evidence that speculators do make things cost more. That's not clear and convincing evidence. The speculators can't eat that oil. They have to sell that oil at some point, either back into the commodities markets, or directly to someone who uses the oil. This...
by talzara
Fri Jul 26, 2013 2:20 pm
 
Forum: Investing - Theory, News & General
Topic: Do Commodities Speculators Make Things Cost More?
Replies: 5
Views: 686

Re: Ground Source Heat Pumps?

Since you are thinking about spending $20,000 on a ground-source heat pump system, it would be a good idea to spend $500 on an energy audit first. A good energy audit will tell you where you are actually losing heat (or in summer, gaining heat) through your building envelope. It may be that the best...
by talzara
Wed Jul 17, 2013 3:51 pm
 
Forum: Personal Consumer Issues
Topic: Ground Source Heat Pumps?
Replies: 19
Views: 1111

Re: Should I lend securities (IB)

Potential adverse tax consequences from receiving cash Payments in Lieu of Dividends on loaned shares When you lend stocks, you receive the full equivalent of all dividends. However, because you have loaned the stock, the cash you receive "in lieu of" dividends may be taxed as ordinary in...
by talzara
Mon Jul 08, 2013 1:56 pm
 
Forum: Investing - Theory, News & General
Topic: Should I lend securities (IB)
Replies: 8
Views: 1149

Re: Interesting article on ETFs' disclosure and holdings

I have located the relevant language in the registration statement (Form N-1A) that Vanguard files for each of its ETFs. Example: http://www.sec.gov/Archives/edgar/data/1021882/000093247110002288/scottsdalefunds485a_052010.htm Vanguard, through the NSCC, makes available after the close of each Busin...
by talzara
Sat Jun 08, 2013 12:06 pm
 
Forum: Investing - Theory, News & General
Topic: Interesting article on ETFs' disclosure and holdings
Replies: 14
Views: 1537

Re: I want health insurance that will never deny my claim

Not in Maryland. Maryland has no chargemasters, it has an all-payer government rate-setting system for hospitals. All payers pay the same rate. http://www.hscrc.state.md.us/documents/HSCRC_PolicyDocumentsReports/GeneralInformation/MarylandAll-PayorHospitalSystem.pdf You are missing the key point. T...
by talzara
Mon Jun 03, 2013 1:08 am
 
Forum: Personal Finance (Not Investing)
Topic: I want health insurance that will never deny my claim
Replies: 33
Views: 3051

Re: gifting money to foreign parents

It may not be necessary but you could make it four checks: #1 from husband to mom #2 from husband to dad #3 from wife to mom #4 from wife to dad That way it's obvious you're under the gift amount. It is not necessary for avoiding gift tax. It is, however, necessary if you want to avoid filing a gif...
by talzara
Sat May 18, 2013 5:52 pm
 
Forum: Personal Finance (Not Investing)
Topic: gifting money to foreign parents
Replies: 4
Views: 556
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