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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 12:57 pm
 
Forum: Personal Finance (Not Investing)
Topic: Secure a foreign tax credit carry forward?
Replies: 19
Views: 1305

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
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: 528

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 8:59 pm
 
Forum: Personal Finance (Not Investing)
Topic: Vanguard sued for charging too little
Replies: 280
Views: 46518

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 8:55 pm
 
Forum: Personal Finance (Not Investing)
Topic: Vanguard sued for charging too little
Replies: 280
Views: 46518

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 8:38 pm
 
Forum: Personal Finance (Not Investing)
Topic: Vanguard sued for charging too little
Replies: 280
Views: 46518

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
Mon Mar 16, 2015 8:19 pm
 
Forum: Personal Finance (Not Investing)
Topic: Secure a foreign tax credit carry forward?
Replies: 19
Views: 1305

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 9:26 pm
 
Forum: Personal Finance (Not Investing)
Topic: Vanguard sued for charging too little
Replies: 280
Views: 46518

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
Thu Feb 26, 2015 9:21 pm
 
Forum: Personal Finance (Not Investing)
Topic: Vanguard sued for charging too little
Replies: 280
Views: 46518

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 10:03 pm
 
Forum: Personal Finance (Not Investing)
Topic: Vanguard sued for charging too little
Replies: 280
Views: 46518

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 Feb 25, 2015 1:43 am
 
Forum: Personal Finance (Not Investing)
Topic: Vanguard sued for charging too little
Replies: 280
Views: 46518

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
Wed Jul 02, 2014 11:53 pm
 
Forum: Personal Finance (Not Investing)
Topic: do you lie about your finances to friends
Replies: 103
Views: 10248

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 7:39 pm
 
Forum: Personal Consumer Issues
Topic: Credit card chip upgrade good idea??
Replies: 45
Views: 1656

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 3:04 pm
 
Forum: Personal Consumer Issues
Topic: The "Deceased" Stamp
Replies: 10
Views: 1121

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 2:33 pm
 
Forum: Personal Consumer Issues
Topic: The "Deceased" Stamp
Replies: 10
Views: 1121

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 2:37 am
 
Forum: Investing - Theory, News & General
Topic: The growing case against ETFs ARTICLE
Replies: 36
Views: 4431

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 9:18 pm
 
Forum: Personal Finance (Not Investing)
Topic: Did Schwab report the wrong basis? Tax consequences..
Replies: 20
Views: 1159

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 6:20 pm
 
Forum: Personal Finance (Not Investing)
Topic: Did Schwab report the wrong basis? Tax consequences..
Replies: 20
Views: 1159

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 6:03 pm
 
Forum: Personal Finance (Not Investing)
Topic: Did Schwab report the wrong basis? Tax consequences..
Replies: 20
Views: 1159

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 3:19 am
 
Forum: Investing - Theory, News & General
Topic: Has anyone seen the Japanese Stock Market?
Replies: 73
Views: 7261

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 1:55 am
 
Forum: Investing - Theory, News & General
Topic: Emerging Markets
Replies: 15
Views: 2147

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 4:03 am
 
Forum: Investing - Theory, News & General
Topic: When tax-efficient taxable investing isn't?
Replies: 51
Views: 4463

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 2:55 am
 
Forum: Investing - Help with Personal Investments
Topic: Vanguard All-World FTSE ETF (investing from Europe)
Replies: 13
Views: 1243

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 11:28 am
 
Forum: Investing - Help with Personal Investments
Topic: Cross sell? Buying in taxable and selling same stock in IRA
Replies: 25
Views: 2090

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
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: 591

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 3:09 am
 
Forum: Investing - Theory, News & General
Topic: Warren Buffett Books - for kids
Replies: 12
Views: 1194

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 1:06 pm
 
Forum: Personal Consumer Issues
Topic: Vanguard Website not available
Replies: 11
Views: 1322

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 12:17 am
 
Forum: Investing - Theory, News & General
Topic: Money Magazine takes Boglehead approach?
Replies: 27
Views: 3654

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 2:31 am
 
Forum: Personal Consumer Issues
Topic: Permits for kitchen remodel
Replies: 17
Views: 1623

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 1:06 am
 
Forum: Investing - Theory, News & General
Topic: 2013: a bad year for pimco
Replies: 26
Views: 3407

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 11:58 am
 
Forum: Personal Consumer Issues
Topic: Wish there was a time machine for windows
Replies: 5
Views: 684

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 10:42 pm
 
Forum: Personal Consumer Issues
Topic: Just returned new laptop with Window 8.1
Replies: 104
Views: 9335

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 10:17 pm
 
Forum: Personal Consumer Issues
Topic: Just returned new laptop with Window 8.1
Replies: 104
Views: 9335

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 10:48 am
 
Forum: Investing - Theory, News & General
Topic: Theoretical best way to sell individual stock shares?
Replies: 12
Views: 773

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 3:37 pm
 
Forum: Investing - Help with Personal Investments
Topic: Columbia Acorn to Vanguard - 7% drop!?!
Replies: 24
Views: 2585

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 9:33 pm
 
Forum: Investing - Help with Personal Investments
Topic: Who on here owned American Airlines Stock
Replies: 21
Views: 2055

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 12:50 pm
 
Forum: Personal Consumer Issues
Topic: Using quickbooks online
Replies: 3
Views: 273

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 5:38 pm
 
Forum: Investing - Theory, News & General
Topic: Warren Buffett Market-Beating Skills Revealed
Replies: 49
Views: 7156

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 9:45 am
 
Forum: Personal Finance (Not Investing)
Topic: Lost brokerage statements/basis for taxes
Replies: 9
Views: 1135

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 1:05 pm
 
Forum: Investing - Help with Personal Investments
Topic: Confused about margin
Replies: 23
Views: 1691

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 12:16 pm
 
Forum: Personal Finance (Not Investing)
Topic: How do I estimate '13 capital gains, interest, dividends?
Replies: 6
Views: 489

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 6:30 pm
 
Forum: Personal Finance (Not Investing)
Topic: Weird Tax Issue (Computing Cost Basis)
Replies: 17
Views: 635

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 2:38 am
 
Forum: Investing - Theory, News & General
Topic: I found a huge error in S&P 500 reported earnings today
Replies: 14
Views: 1988

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 9:48 am
 
Forum: Investing - Theory, News & General
Topic: Forbes Column about Bogleheads
Replies: 32
Views: 5241

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 1:36 am
 
Forum: Investing - Help with Personal Investments
Topic: Protective puts
Replies: 21
Views: 1973

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 12:54 am
 
Forum: Investing - Theory, News & General
Topic: Is BRK really now just an index fund?
Replies: 10
Views: 1263

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 9:14 am
 
Forum: Personal Finance (Not Investing)
Topic: Gift tax question
Replies: 5
Views: 558

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 1:12 am
 
Forum: Personal Consumer Issues
Topic: dishwasher vs manual dish washing
Replies: 54
Views: 4808

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 1:11 am
 
Forum: Investing - Theory, News & General
Topic: A Boglehead Running the Fed!
Replies: 24
Views: 4105

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 8:44 am
 
Forum: Investing - Theory, News & General
Topic: Characteristics US debt - Fixed/variable/inflation
Replies: 10
Views: 816

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 9:59 pm
 
Forum: Investing - Theory, News & General
Topic: Credit default swap question
Replies: 4
Views: 479
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