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by talzara
Tue May 12, 2015 5:38 pm
Forum: Personal Consumer Issues
Topic: What are potential drawback of pay-per-mile insurance?
Replies: 10
Views: 892

Re: What are potential drawback of pay-per-mile insurance?

We are fast entering the information economy where data can be used for & against us as consumers. Charging for insurance on a per-mile basis is the first step. Once a company is collecting real time driver milage data what other behaviors might they ask to gather in return for a possibly lower...
by talzara
Tue May 12, 2015 5:36 pm
Forum: Personal Consumer Issues
Topic: What are potential drawback of pay-per-mile insurance?
Replies: 10
Views: 892

Re: What are potential drawback of pay-per-mile insurance?

My car insurance is slowly approaching its due date and I started thinking about changing insurance company. Since I don't drive a lot (my work is in cycling distance) it looks that I could pay half or one third of premium per month using Metromile. I cannot find many reviews of it - does anyone ha...
by talzara
Tue May 12, 2015 5:19 pm
Forum: Personal Consumer Issues
Topic: What are potential drawback of pay-per-mile insurance?
Replies: 10
Views: 892

Re: What are potential drawback of pay-per-mile insurance?

My State Farm renewal notice specifies how the vehicle is used. It says "To work, School or Pleasure Driven 7,500 miles or less annually." They never ask about any changes to that. I told them my usage was decreased when I retired (no commuting) and it has been that way since. That's not ...
by talzara
Sat Apr 25, 2015 2:44 pm
Forum: Investing - Help with Personal Investments
Topic: Stepped-up basis on TOD brokerage account
Replies: 21
Views: 1453

Re: Stepped-up basis on TOD brokerage account

There is a remarkable lack of clarity in the IRS Pubs about joint tenant account holding periods. However, IRS Pubs 550 and 544 when discussing basis adjustment do NOT treat half the shares as not getting a basis adjustment. ALL the shares get a basis adjustment to the average of the pre existing c...
by talzara
Fri Apr 24, 2015 11:22 am
Forum: Investing - Theory, News & General
Topic: Mother lode of information on Public Pension Plans
Replies: 3
Views: 832

Re: Mother lode of information on Public Pension Plans

"Alternative" investments include hedge funds, private equity, and venture capital. Sometimes it includes forestry land, but usually that is classified as Real Estate. Basically, the asset classes that David Swenson made famous when he was managing the Yale endowment. However, after he tol...
by talzara
Fri Apr 24, 2015 1:11 am
Forum: Investing - Help with Personal Investments
Topic: Stepped-up basis on TOD brokerage account
Replies: 21
Views: 1453

Re: Stepped-up basis on TOD brokerage account

Your title says "Stepped-up basis on TOD brokerage account." However, your post says that it is a "joint account." Which is it? An account titled "John Father TOD Abigail Mother" is an individual account, not a joint account. It is 100% owned by Father, and receives a 1...
by talzara
Sat Mar 21, 2015 12:57 pm
Forum: Personal Finance (Not Investing)
Topic: Secure a foreign tax credit carry forward?
Replies: 19
Views: 1411

Re: Secure a foreign tax credit carry forward?

So OP, do you understand that a foreign tax credit carry forward is essentially worthless? Thanks. I think I understand. For this year and next, my income is hovering at a very low point in order to maximize ACA benefits, so my tax liability is tiny. My income will more than double in two years, wi...
by talzara
Sat Mar 21, 2015 12:15 pm
Forum: Personal Finance (Not Investing)
Topic: How worried should I be about my 401k safety?
Replies: 2
Views: 558

Re: How worried should I be about my 401k safety?

My 401k provider is John Hancock. They are owned by Manulife Corporation ( stock ticker - http://finance.yahoo.com/q?s=mfc&fr=uh3_finance_web&uhb=uhb2 ). They are not FINRA registered or SIPC protected. My concern if Manulife failed that my 401k would go to 0. Actually, it depends on what i...
by talzara
Mon Mar 16, 2015 8:59 pm
Forum: Personal Finance (Not Investing)
Topic: Vanguard sued for charging too little
Replies: 280
Views: 47965

Re: Vanguard sued for charging too little

How soon will we know the conclusion to all of this? Is there a date set for a verdict yet? Not even close. No jury has been selected. No evidence has been presented. No witnesses have testified. We're barely into the preliminary motions. Also, the trial is not that important. The IRS tax audit is ...
by talzara
Mon Mar 16, 2015 8:55 pm
Forum: Personal Finance (Not Investing)
Topic: Vanguard sued for charging too little
Replies: 280
Views: 47965

Re: Vanguard sued for charging too little

Oops I relent - perhaps Bogle can't really speak to the actions of Vanguard today. Reading the complaint it seems there have been changes in Vanguard since Bogle's tenure especially in the Contingency Reserve which is 1,000 times the size of all payments made for its claimed purpose over the nearly...
by talzara
Mon Mar 16, 2015 8:38 pm
Forum: Personal Finance (Not Investing)
Topic: Vanguard sued for charging too little
Replies: 280
Views: 47965

Re: Vanguard sued for charging too little

However, talzara, here's where we agree (I think). Vanguard's structure provides an inherent advantage to investors. A cooperative structure would enable it to avoid corporate level tax and increase that advantage, but my point is that even if Vanguard pays corporate income tax its structure would ...
by talzara
Mon Mar 16, 2015 8:19 pm
Forum: Personal Finance (Not Investing)
Topic: Secure a foreign tax credit carry forward?
Replies: 19
Views: 1411

Re: Secure a foreign tax credit carry forward?

My conclusion: Low tax liability evaporates the foreign tax credit in the Form 1116 calculus. So that carry forward option is lost to me. Correct? No, it creates the carryforward. Suppose you have $250 in foreign tax credit but have only $100 in tax liability. If you do not file Form 1116, then you...
by talzara
Thu Feb 26, 2015 9:26 pm
Forum: Personal Finance (Not Investing)
Topic: Vanguard sued for charging too little
Replies: 280
Views: 47965

Re: Vanguard sued for charging too little

It is true, talzara, that lawyers tend to care about the actual law (imagine that) but Section 482 is really, really basic. Suggesting that this issue is narrow and legalistic is like suggesting that it's narrow and legalistic to tax those wealthy people with UBS accounts. Their money is outside th...
by talzara
Thu Feb 26, 2015 9:21 pm
Forum: Personal Finance (Not Investing)
Topic: Vanguard sued for charging too little
Replies: 280
Views: 47965

Re: Vanguard sued for charging too little

(1) See below Prime Money Market Fund February semiannual report for February 28, 2014; its yield is .01% and expense ratios between .10 and .17%; it would fail the 90% test. I said "endanger" funds to fail the test, not "cause" every fund to fail the test. A workable structure ...
by talzara
Wed Feb 25, 2015 10:03 pm
Forum: Personal Finance (Not Investing)
Topic: Vanguard sued for charging too little
Replies: 280
Views: 47965

Re: Vanguard sued for charging too little

First, the funds are mutual funds and must meet a number of tax law requirements to maintain this status. One of these tests imposes strict limits on "active income," which means business income as opposed to dividends, interest, etc. Vanguard's income is active income and if it were a co...
by talzara
Wed Feb 25, 2015 1:43 am
Forum: Personal Finance (Not Investing)
Topic: Vanguard sued for charging too little
Replies: 280
Views: 47965

Re: Vanguard sued for charging too little

This is very, very basic tax law. See quotes below in the links below, from Robert Willens, a very prominent tax lawyer, from articles about the case in The Financial Times and in Bloomberg BNA's Transfer Pricing Report, the most respected periodical on transfer pricing. http://www.duffandphelps.co...
by talzara
Wed Jul 02, 2014 11:53 pm
Forum: Personal Finance (Not Investing)
Topic: do you lie about your finances to friends
Replies: 103
Views: 10405

Re: do you lie about your finances to friends

On a related note: I am amazed by how many people come on a public forum (Bogleheads) and give actual amounts. There is an exceedingly rare case when the actual amount matters. Almost all cases can be served with just providing percentages. Do you believe that most people are giving actual amounts?...
by talzara
Mon Mar 03, 2014 7:39 pm
Forum: Personal Consumer Issues
Topic: Credit card chip upgrade good idea??
Replies: 45
Views: 1666

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 3:04 pm
Forum: Personal Consumer Issues
Topic: The "Deceased" Stamp
Replies: 10
Views: 1129

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 2:33 pm
Forum: Personal Consumer Issues
Topic: The "Deceased" Stamp
Replies: 10
Views: 1129

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 Feb 24, 2014 2:37 am
Forum: Investing - Theory, News & General
Topic: The growing case against ETFs ARTICLE
Replies: 36
Views: 4444

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
Sun Feb 23, 2014 9:18 pm
Forum: Personal Finance (Not Investing)
Topic: Did Schwab report the wrong basis? Tax consequences..
Replies: 20
Views: 1201

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 6:20 pm
Forum: Personal Finance (Not Investing)
Topic: Did Schwab report the wrong basis? Tax consequences..
Replies: 20
Views: 1201

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 6:03 pm
Forum: Personal Finance (Not Investing)
Topic: Did Schwab report the wrong basis? Tax consequences..
Replies: 20
Views: 1201

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 3:19 am
Forum: Investing - Theory, News & General
Topic: Has anyone seen the Japanese Stock Market?
Replies: 73
Views: 7368

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
Sat Feb 22, 2014 1:55 am
Forum: Investing - Theory, News & General
Topic: Emerging Markets
Replies: 15
Views: 2160

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
Tue Feb 18, 2014 4:03 am
Forum: Investing - Theory, News & General
Topic: When tax-efficient taxable investing isn't?
Replies: 51
Views: 4543

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 2:55 am
Forum: Investing - Help with Personal Investments
Topic: Vanguard All-World FTSE ETF (investing from Europe)
Replies: 13
Views: 1285

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
Sun Feb 16, 2014 11:28 am
Forum: Investing - Help with Personal Investments
Topic: Cross sell? Buying in taxable and selling same stock in IRA
Replies: 25
Views: 2187

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
Tue Feb 04, 2014 11:36 pm
Forum: Investing - Theory, News & General
Topic: I need an explanation of ownership of Vanguard Group
Replies: 1
Views: 597

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
Thu Jan 30, 2014 3:09 am
Forum: Investing - Theory, News & General
Topic: Warren Buffett Books - for kids
Replies: 12
Views: 1199

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
Mon Jan 27, 2014 1:06 pm
Forum: Personal Consumer Issues
Topic: Vanguard Website not available
Replies: 11
Views: 1331

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
Sat Jan 11, 2014 12:17 am
Forum: Investing - Theory, News & General
Topic: Money Magazine takes Boglehead approach?
Replies: 27
Views: 3663

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
Fri Jan 10, 2014 2:31 am
Forum: Personal Consumer Issues
Topic: Permits for kitchen remodel
Replies: 17
Views: 1635

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 1:06 am
Forum: Investing - Theory, News & General
Topic: 2013: a bad year for pimco
Replies: 26
Views: 3428

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 Dec 27, 2013 11:58 am
Forum: Personal Consumer Issues
Topic: Wish there was a time machine for windows
Replies: 5
Views: 690

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
Thu Dec 26, 2013 10:42 pm
Forum: Personal Consumer Issues
Topic: Just returned new laptop with Window 8.1
Replies: 104
Views: 9493

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 10:17 pm
Forum: Personal Consumer Issues
Topic: Just returned new laptop with Window 8.1
Replies: 104
Views: 9493

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 10:48 am
Forum: Investing - Theory, News & General
Topic: Theoretical best way to sell individual stock shares?
Replies: 12
Views: 821

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
Fri Dec 13, 2013 3:37 pm
Forum: Investing - Help with Personal Investments
Topic: Columbia Acorn to Vanguard - 7% drop!?!
Replies: 24
Views: 2610

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
Wed Dec 11, 2013 9:33 pm
Forum: Investing - Help with Personal Investments
Topic: Who on here owned American Airlines Stock
Replies: 21
Views: 2063

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
Tue Dec 10, 2013 12:50 pm
Forum: Personal Consumer Issues
Topic: Using quickbooks online
Replies: 3
Views: 285

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
Sun Dec 08, 2013 5:38 pm
Forum: Investing - Theory, News & General
Topic: Warren Buffett Market-Beating Skills Revealed
Replies: 49
Views: 7219

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
Tue Dec 03, 2013 9:45 am
Forum: Personal Finance (Not Investing)
Topic: Lost brokerage statements/basis for taxes
Replies: 9
Views: 1147

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
Sun Dec 01, 2013 1:05 pm
Forum: Investing - Help with Personal Investments
Topic: Confused about margin
Replies: 23
Views: 1704

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
Sat Nov 30, 2013 12:16 pm
Forum: Personal Finance (Not Investing)
Topic: How do I estimate '13 capital gains, interest, dividends?
Replies: 6
Views: 496

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
Wed Nov 27, 2013 6:30 pm
Forum: Personal Finance (Not Investing)
Topic: Weird Tax Issue (Computing Cost Basis)
Replies: 17
Views: 639

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
Sat Nov 16, 2013 2:38 am
Forum: Investing - Theory, News & General
Topic: I found a huge error in S&P 500 reported earnings today
Replies: 14
Views: 1994

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
Thu Oct 31, 2013 9:48 am
Forum: Investing - Theory, News & General
Topic: Forbes Column about Bogleheads
Replies: 32
Views: 5250

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
Sat Oct 19, 2013 1:36 am
Forum: Investing - Help with Personal Investments
Topic: Protective puts
Replies: 21
Views: 1992

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...

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