Search found 36 matches

by Toller
Sun Feb 12, 2023 4:01 pm
Forum: Personal Investments
Topic: Explain "wash sales"...
Replies: 50
Views: 3048

Explain "wash sales"...

I read today that Steve Ballmer sold Shell Oil stock and got a $20M loss, and then bought the same amount of a different class of Shell common stock. It wasn't a wash sale because they were not identical. I though, perhaps mistakenly, that it was a wash sale is they were very similar.

Can I sell one S&P500 etf for a loss, and then buy a different S&P500 etf and not have a wash sale?
by Toller
Fri Sep 09, 2022 7:42 am
Forum: Personal Investments
Topic: How safe are Municipal bonds?
Replies: 8
Views: 1186

Re: How safe are Municipal bonds?

Yes NYS. Out of state bonds don't avoid the 5% state tax, so in state is good, but I see your point about state specific risk.
I am retired, yet am in a high tax bracket.
VNYTX seems like the better investment; I think I was trying to diversify funds to avoid fund specific risk.
If I sold PRNYX while it is down, and bought VNYTX (or VTEAX) would that be a wash sale and I would be unable to use my loss?
Is fund specific risk something to be concerned about?
by Toller
Fri Sep 09, 2022 2:51 am
Forum: Personal Investments
Topic: How safe are Municipal bonds?
Replies: 8
Views: 1186

Re: How safe are Municipal bonds?

I have PRNYX and VNYTX. They are both long term rather than the medium term you referenced.
They are somewhat lower grade than yours, having more A and BBB. Now would be a good time to get out, as they are quite low, if they are too risky.
by Toller
Thu Sep 08, 2022 9:15 pm
Forum: Personal Investments
Topic: How safe are Municipal bonds?
Replies: 8
Views: 1186

How safe are Municipal bonds?

I am about 65% equities, 32% municipal bonds, and 3% treasures.
How safe are municipal bonds?
I am starting to think about leaving an estate, and want to make sure my wife is left with something if worst comes to worst.
In the 2007-2009 recession my equities lost half their values, but my Municipals weren't hurt at all. Nothing defaulted, nothing lost value.
Is that something I can generally count on (I am in mutual funds rather than individual bonds, so I figure a few going bad won't do too much damage) or was 2007-2009 just lucky and I should migrate more to treasuries?
by Toller
Tue Mar 01, 2022 12:13 pm
Forum: Personal Investments
Topic: How to handle a Roth IRA
Replies: 7
Views: 931

Re: How to handle a Roth IRA

wolf359 wrote: Tue Mar 01, 2022 12:04 pm

1) The Roth is best held in reserve for large expenditures. If you had to buy a car or replace a roof, you have to sell assets to raise the money. This potentially could raise your income, which potentially changes your Medicare premiums, affects your income taxes, etc. By having the Roth available as a reserve, you have a source of tax-free money that can be used to cover some or all of those expenses.
I hadn't thought of that. Most of my investments date from 2008 and now have 200% appreciation. Raising some money without horrible taxes can be a problem. A good problem perhaps, but still...
by Toller
Tue Mar 01, 2022 11:03 am
Forum: Personal Investments
Topic: How to handle a Roth IRA
Replies: 7
Views: 931

Re: How to handle a Roth IRA

When I die my assets go to my wife, and visa versa. When we both die, assets are split between my two sons.
Actually the brokerage is recommending that I name heirs for the individual accounts. Is that necessary, or is my method adequate.

I have an appointment with my lawyer next week, as our wills are 6 years old.
by Toller
Tue Mar 01, 2022 10:44 am
Forum: Personal Investments
Topic: How to handle a Roth IRA
Replies: 7
Views: 931

How to handle a Roth IRA

I am 68 and have a Roth IRA. I don't need the money in it; at least not now.

I have left it alone because the income in it is tax free and can live off the income from taxable investments.
Is that the right way to do it, or am I overlooking something?

Thanks.
by Toller
Tue Mar 23, 2021 7:12 pm
Forum: Personal Investments
Topic: E*TRADE Fully Paid Lending Program
Replies: 3
Views: 799

E*TRADE Fully Paid Lending Program

What is the downside to this? They present it as getting money for doing nothing at all. While I doubt there is much money involved, getting anything for doing nothing is pretty good... unless these is a downside. Anyone know?
by Toller
Wed Dec 16, 2020 2:12 pm
Forum: Investing - Theory, News & General
Topic: Code for S&P500 Futures?
Replies: 3
Views: 497

Re: Code for S&P500 Futures?

ES=F is pretty much what I was looking for, but it doesn't work in Google Finance.
But I can just save a link to it on Yahoo and it is almost as good. Thanks.
by Toller
Tue Dec 15, 2020 8:42 pm
Forum: Investing - Theory, News & General
Topic: Code for S&P500 Futures?
Replies: 3
Views: 497

Code for S&P500 Futures?

I want to check how the S&P500 is doing overnight. That means getting the futures price. Is there a symbol, code, whatever I can put in to sites that give stock prices to get that. Like "SPY" gives me the price for SPDR S&P 500 ETF Trust

sorry if this sounds confused, but I hope you know what I mean.
by Toller
Wed Oct 21, 2020 10:44 am
Forum: Personal Finance (Not Investing)
Topic: Why does it take so long for a check to clear.
Replies: 24
Views: 2457

Re: Why does it take so long for a check to clear.

I know they can do it, but why do they do it. If they actually have the money in 5 days, why do they hold it for 10 days. Yeah, I know, because they can; that isn't a satisfying answer.
by Toller
Wed Oct 21, 2020 9:12 am
Forum: Personal Finance (Not Investing)
Topic: Why does it take so long for a check to clear.
Replies: 24
Views: 2457

Why does it take so long for a check to clear.

I just deposited a $150,000 check in my checking account. They say I can't access the money for 10 days. It is a local check from a substantial financial company.

I read it takes 2 days for a check to clear, and as much as 5 days before they actually have the money. Why do I have to wait 10 days?

I normally have a balance of $20,000, though it has been temporarily 10x that a few times in the 8 years I have had the account. No, never overdrawn.
The last time this happened I told them I needed the money immediately and they could call my brother-in-law on their board if they needed a reference. I got my money, but don't feel like going through that again. Just asking.
by Toller
Fri Jul 17, 2020 12:50 pm
Forum: Personal Investments
Topic: What happens after I move an account?
Replies: 13
Views: 1633

Re: What happens after I move an account?

Transfer is complete; Etrade assures me the basis info will be up early next week.
$6,000 incentive will be paid shortly.
Fidelity account is still open and statements are available.
It contains $80 in a dividend paid the day of transfer; but there must be a way to get it out.
by Toller
Thu Jul 09, 2020 2:07 pm
Forum: Personal Investments
Topic: What happens after I move an account?
Replies: 13
Views: 1633

Re: What happens after I move an account?

Etrade says:

Yes, they will send a 1099. The way it works here is if a full transfer out was initiated, the account stays in a restricted status for 6 months so that all residual interest and dividends are swept to the new firm. It will auto-close after 6 months but you would still be able to log in to retrieve tax and other documents for a long time, for 7 years I think.

Does that sound right?
by Toller
Wed Jul 08, 2020 6:08 pm
Forum: Personal Investments
Topic: What happens after I move an account?
Replies: 13
Views: 1633

Re: What happens after I move an account?

Obviously I didn't explain it very well.

I will have to file tax returns for both states, and need to know how much I earned while living in each state; and be able to prove it if audited.
If I had Fidelity when I lived in PA and Etrade when I lived in NJ, it is pretty trivial. Manually separating them is not so easy.

So, I will get 1099s from both companies.
Will I be able to access my old Fidelity account in event I need to see an old statement after I transfer the assets?
by Toller
Wed Jul 08, 2020 2:49 pm
Forum: Personal Investments
Topic: What happens after I move an account?
Replies: 13
Views: 1633

What happens after I move an account?

I am moving to a new state later this month. I figure the state income taxes will be simpler if I had one account in the old state, and a second in the new state. Etrade is giving a nice incentive, so I am changing from Fidelity to Etrade.

Will I still get my tax statements next spring from Fidelity?
Will I still have access to my Fidelity account to look at statements and such, even though there is nothing in it?
Are there any issues I might not have thought of?

Thanks much.
by Toller
Tue Jun 02, 2020 12:03 pm
Forum: Investing - Theory, News & General
Topic: Why is the stock market up? [thread multi-merge]
Replies: 521
Views: 31909

Re: Why the heck is the market up?!?!

Northster wrote: Tue Jun 02, 2020 11:55 am Brian ,
I retired in July 2009 with a 60/40 portfolio that had shrunk by 1/3. There was talk then of a ten-year Japan type event, etc. I chose to let the decline reset my portfolio to 40/60 and have stayed there every since. I think that is a good place to be in retirement if your portfolio is adequate to your needs.
I did almost the opposite. I had 66/34 in 2007. By March 2009 it is 50/50, my equity shrinking by half. I sold all my bonds and went entirely into equity. The rest is history. The last few years I have retreated from equities, but not wanting to pay tax on capital gains makes that difficult.
by Toller
Tue Jun 02, 2020 11:58 am
Forum: Investing - Theory, News & General
Topic: Why is the stock market up? [thread multi-merge]
Replies: 521
Views: 31909

Re: Why the heck is the market up?!?!

grog wrote: Tue Jun 02, 2020 11:27 am Broken windows fallacy is true after all?
Sometimes I just can't grasp the disconnect between the economy and the stock market.
by Toller
Tue Jun 02, 2020 10:43 am
Forum: Investing - Theory, News & General
Topic: Why is the stock market up? [thread multi-merge]
Replies: 521
Views: 31909

Why the heck is the market up?!?!

[Merged to existing thread on identical topic - admin alex]

Today the market is up for the second straight day.

There is rioting across the country.
There is no relief from C19, and the protests will certainly make it worse.
Recent development with China are bad.
No good news anywhere.

So why is the market up?
by Toller
Fri Mar 13, 2020 10:13 am
Forum: Personal Investments
Topic: I think the market will continue down, but I can't get out!?
Replies: 10
Views: 2082

Re: I think the market will continue down, but I can't get out!?

doldrum wrote: Thu Mar 12, 2020 9:36 pm Don't sell! I would only sell right now if you want to exit a losing position and I really don't understand all these people that are selling this week.
If you want to do something and have a strong conviction that we are headed down further- hedge. Purchase Long Put Options against your portfolio. If you believe the market is headed down further purchase Put options against your positions (or indices). This creates a Win Win psychology in that you will be excited if it goes down (ie the Put options will go up in value) and if the market goes up then your original long positions will go up in value. This also protects your long portfolio from the upswing (as alluded to by BoggleHead2).
A great idea. Thanks
by Toller
Thu Mar 12, 2020 5:17 pm
Forum: Personal Investments
Topic: I think the market will continue down, but I can't get out!?
Replies: 10
Views: 2082

I think the market will continue down, but I can't get out!?

Most of my equities were purchased in 2009-2010 and I have over 100% in unrealized capital gains. I expect the market will continue down, but am reluctant to sell anything because the tax bill will be horrible. (My plan is to die and leave it to my heirs with a new basis, so no tax is ever paid)
I have always figured that current prices are the best guess of those who know a lot more than I do. According, there is an equal likelihood my investments will go up as down as up. As such, to take a huge tax bill to guard against them going down is foolish.

I would appreciate and knowing opinions of my philosophy.
by Toller
Thu Mar 12, 2020 4:46 pm
Forum: Personal Investments
Topic: Wash sale? How to account for it...
Replies: 1
Views: 179

Wash sale? How to account for it...

I sold a stock at 52 two weeks ago. I bought it years ago for 54, so I had a $2/share loss. I bought Treasuries. Today it is at 29 and seems rather more attractive than it did 2 weeks ago. If I bought it again, presumably it would be a wash transaction and could not claim my loss this year. But I did lose $2, so how does that work. Does my basis for the new purchase become 31?

If that sounds like a psychic transaction, I sadly did nothing with the other 99% of my stocks and they are down 24%.
by Toller
Thu Jun 14, 2018 12:45 am
Forum: Personal Investments
Topic: What do brokerages get out of incentives?
Replies: 7
Views: 995

What do brokerages get out of incentives?

I have accounts with two brokerages, but no real preference.
About once a year, they offer me a significant incentive to transfer stock to them.
So I move stocks around. It takes 10 minutes and it very profitable. (Well, the return on capital is not big, but in terms of $/hour...)
As they must know, I rarely trade and they will never get even a tiny bit back in commissions.

However, they do pay for it, so it must be important to them.
Why. What do they get out of it?
by Toller
Fri Mar 30, 2018 9:26 am
Forum: Personal Finance (Not Investing)
Topic: File an amended return for $11?
Replies: 7
Views: 983

File an amended return for $11?

I got a corrected 1099div after I filed 3 weeks ago. It shows $80 in extra dividends. Plugging the new figure into H&R Block, it shows that I owe $11 more to the IRS, $1 more to NY, and $2 less to PA. (I moved from NY to PA in September).

I want to do what is right, but have trouble believing the IRS wants me to amend my return for $11; I expect it will cost them $50 to process the amended return. And $1 to NYS?!

Do I ignore this, wait for them to ask for the money, or file an amended return?
Presumably I can ignore PA; if they want to send me $2, so be it.

I filed one a few years ago, so am familiar with the process.
by Toller
Fri Jun 16, 2017 6:56 pm
Forum: Personal Investments
Topic: Any good substitutes for Municipal Bonds?
Replies: 3
Views: 1044

Any good substitutes for Municipal Bonds?

It just occurred to me that I will be moving from NY to PA later this year, and maybe NYS Municipal Bonds won't be a great investment. I have about half in individual bonds and half in funds. I presume there are PA Municipal bonds I could buy instead, but PA is probably just a year or two, so I don't really want to go through this again next year. Is there a good substitute (well, like PR bonds, but not PR bonds...) for Municipal bonds? Treasuries maybe? I have a decent capital gains that I am not anxious to realize. Maybe I just just sit on them? A related questions... Long term Govt bonds will go down as interest rates go up. Right? Since it is inevitable that will happen, is the effect already in the price and maybe they won't go down to...
by Toller
Fri Jun 09, 2017 9:25 am
Forum: Personal Investments
Topic: How am I confused about YTD return?
Replies: 11
Views: 2375

Re: How am I confused about YTD return?

It got more interesting. I looked IJR up on Morningstar.

They agree with Ishares that the (trailing total return) NAV YTD return is 2.91% and the expense ratio is 0.07.

HOWEVER they agree with Yahoo that the Annual Return Price YTD is -0.30%. (Annual Return NAV YTD is -0.20%)

SO, what is the difference between Annual Return YTD and Trailing Total Return YTD?
I understand total included dividends and the other doesn't; but that is pretty unimportant when the ETF is up 3.25% for the year.
Why are they so completely different?
by Toller
Fri Jun 09, 2017 9:14 am
Forum: Personal Investments
Topic: How am I confused about YTD return?
Replies: 11
Views: 2375

Re: How am I confused about YTD return?

Okay, I went to Ishares.

They give a YTD return of 2.91%. They also give an expense ratio of 0.07%, rather than Yahoo's 0.12%
Live and learn; I just assumed Yahoo would get it right.

Thanks.
by Toller
Fri Jun 09, 2017 9:09 am
Forum: Personal Investments
Topic: Son's UTMA account
Replies: 46
Views: 6606

Re: Son's UTMA account

My 23 year old son has a rather large UGMA account. He knows he has something, but has no idea what. I file his income tax returns. He has never asked about any of this, and I feel is it best to keep it from him as long as possible. (I gave him a 5 year old car for college graduation and he was thrilled. Probably woudn't have been if he knew how much money he had...) My understanding is that while he has the right to his money, not doing anything is a legitimate option unless he excercises his rights. Am I correct about that? If not, please let me know how. Thanks. His older brother wanted to do his own taxes when he was 25, so the jig was up then. He disagrees with me about not telling little brother, but then he disagrees with me about ev...
by Toller
Fri Jun 09, 2017 8:55 am
Forum: Personal Investments
Topic: How am I confused about YTD return?
Replies: 11
Views: 2375

How am I confused about YTD return?

I own some IJR.
Yahoo Finance shows the YTD return as -0.30%.
It is up 3.25% for 2017.
The Yield (which I presume is the dividend rate??) is 1.24%
https://finance.yahoo.com/quote/IJR?ltr=1

So how can the YTD return be negative?
Either I am very confused, or Yahoo is crazy.
by Toller
Fri May 26, 2017 8:12 am
Forum: Personal Investments
Topic: What is "escrow to maturity".
Replies: 7
Views: 1161

Re: What is "escrow to maturity".

These are "PUERTO RICO PUB FIN CORP COMWLTH APPROP 06.00000% 08/01/2026 BDS SER. 2001E "

I bought them for 1189 and they are currently at 1283. (excuse me if I have decimal places in the wrong place; I find bonds confusing. I have $6,000 worth of them).

So I have a good income, and a modest capital gain on them. I hate to sell anything with capital gains, but if there is ANY risk it would seem prudent to dump them.
by Toller
Thu May 25, 2017 3:31 pm
Forum: Personal Investments
Topic: What is "escrow to maturity".
Replies: 7
Views: 1161

Re: What is "escrow to maturity".

Okay let me put some numbers to what you said.

PR sells 1000 6% coupon bonds for $1k each. They get $1M and pay $6k interest.
Interest rates drop and the bonds go up to $1.5k each.
PR would dearly like to call them, but they are not callable.
So they sell 1000 3% coupon bonds for $1k each, they get $1M and pay $3k interest.
They put the money into 1000 escrowed Treasuries paying 3%.

They have to pay out $6k on the first bonds, $3k on the second, and get $3k for their Treasuries.
PR still has to come up with $6k each year. What has changed?
The bonds exist, so it has to make sense. What am I misunderstanding?

AND are they protected from the bankruptsy?
by Toller
Thu May 25, 2017 2:20 pm
Forum: Personal Investments
Topic: What is "escrow to maturity".
Replies: 7
Views: 1161

What is "escrow to maturity".

I understand PR is bankrupt. I presume their bonds have lost most of their value.

I own one PR bond. It is maintaining its value nicely. Looking though my account, Fidelity says it is "escrow to maturity" and says the the money to redeem it is invested in other bonds in an escrow account. Does that make it immune to the bankruptsy?

Why would this exist? Presumably they make more on the other bonds than they pay out on their bond. Why didn't I just buy the better bond?
Any explanation would be appreciated.
by Toller
Thu Oct 29, 2015 9:25 am
Forum: Personal Investments
Topic: Account Security?
Replies: 0
Views: 587

Account Security?

I have stocks, bonds, and mutual funds invested at Fidelity. I have read that registered securities belong to me and are secure regardless of what happens at Fidelity, but I don't seen any explanation of what a registered security is.
How do I know if my investments are registered?
Assuming they are, is that protection something that can be absolutely relied on?

Presumable an employee or a hacker can steal my investments and go to Rio. What protection do I have against that? Is there insurance or at least Fidelity liability?

I am thinking it might be prudent to split up my investments, but then I would have more exposure; not to mention paperwork.
by Toller
Mon Oct 07, 2013 1:42 pm
Forum: Personal Investments
Topic: Confused about bonds versus stocks...
Replies: 2
Views: 815

Confused about bonds versus stocks...

I had a professional investment manager, but since he did about the same as the indexes, it seemed silly to pay him 1%, so I took over management.
I sold off most of his equities and went into equity index funds, but kept the bonds.

It is mainly municipal bonds, but some Fanniemae.
The equity and the municipal bonds move in rather opposite directions, as I would expect.
The Fanniemae move in step with the equity (though smaller amounts) and I don't understand this.

Why do Fanniemae move with equity?
by Toller
Thu Mar 28, 2013 12:04 pm
Forum: Investing - Theory, News & General
Topic: Burton Malkiel, Wealthfront CIO
Replies: 89
Views: 20961

Re: Burton Malkiel, Wealthfront CIO

umfundi wrote:
(He looks for castles in the air built on firm foundations--that is, companies that have both good fundamentals and a romantic, exciting "story.")
Seems to me, also an apt description of the author. :?

Keith
I had him for accounting in 1974. He spent as much time talking about Chinese fairytales as accounting but I enjoyed the course and learned the material. So, yeah, it is an apt description of the author; at least 38 years ago.
by Toller
Wed Mar 27, 2013 12:05 pm
Forum: Investing - Theory, News & General
Topic: Why are long term treasuries up today?
Replies: 6
Views: 890

Why are long term treasuries up today?

I sold a big slug of stocks yesterday and bought TLT. Needless to say, I am delighted that it is up 1% while the stock are down; but why?
Nothing much happened today, and 1% seems like an awfully big jump.