Search found 6105 matches

by Doc
Sun May 01, 2016 8:52 am
Forum: Investing - Theory, News & General
Topic: Taxable Account - Bonds - Diversification vs. Tax
Replies: 10
Views: 921

Re: Taxable Account - Bonds - Diversification vs. Tax

Depending on the amount of diversification you desire and your tax situation three to five separate funds to replace TBM will be more tax efficient and have the same diversification. What funds would you use to replicate TBM? Short-term Govt or Short-term Treasury in taxable and Interm-term Investm...
by Doc
Sun May 01, 2016 8:34 am
Forum: Investing - Theory, News & General
Topic: If I invest in VWIUX today, will I have a capital loss from the premium bonds maturing?
Replies: 7
Views: 500

Re: If I invest in VWIUX today, will I have a capital loss from the premium bonds maturing?

Actually, no. Distributions are based on the yield-to-maturity of the bonds at the time that the fund purchases them. SEC Yield is based on the current YTM of the bonds at the time of calculation. That results in the distribution yield being higher than the SEC yield. Yes but it's actually very sim...
by Doc
Sat Apr 30, 2016 4:38 pm
Forum: Investing - Theory, News & General
Topic: Wash Sale Rules Across Accounts
Replies: 3
Views: 441

Re: Wash Sale Rules Across Accounts

BigJohn wrote:livesoft, I read your post on wash sale examples but missed the turn it took to discussing tIRAs. Documentation is very clear and unambiguous, thanks.

It is a wash sale. The loss occurred in taxable. But the broker is not required to report it. Don't get trapped.
by Doc
Wed Apr 27, 2016 5:21 pm
Forum: Investing - Theory, News & General
Topic: Handling RMDs
Replies: 31
Views: 1769

Re: Handling RMDs

That depends on how the conversion tax is paid. If it is paid out of the tax-deferred account, then I agree that it is a straight up comparison of rates now vs. later. But if the conversion tax is paid out of taxable investments, then you are reducing the tax-drag on your taxable portfolio, and the...
by Doc
Wed Apr 27, 2016 5:16 pm
Forum: Investing - Theory, News & General
Topic: Handling RMDs
Replies: 31
Views: 1769

Re: Handling RMDs

The question is not is there any benefit to converting to Roth vs not converting but rather is there any benefit to taking a taxable withdrawal vs converting the same amount to a Roth. There is because the Roth is not subject to future dividends and capital gains, the taxable account is. "Your...
by Doc
Wed Apr 27, 2016 2:32 pm
Forum: Investing - Theory, News & General
Topic: Handling RMDs
Replies: 31
Views: 1769

Re: Handling RMDs

The question is not is there any benefit to converting to Roth vs not converting but rather is there any benefit to taking a taxable withdrawal vs converting the same amount to a Roth. There is because the Roth is not subject to future dividends and capital gains, the taxable account is. "Your...
by Doc
Wed Apr 27, 2016 1:56 pm
Forum: Investing - Theory, News & General
Topic: Allan Roth on why bond funds are better than individual bonds
Replies: 63
Views: 4741

Re: Allan Roth on why bond funds are better than individual bonds

The conclusion we can draw is that if an investor limits herself to bonds of the highest quality and has a portfolio of perhaps $500,000, she could consider building her own portfolio, saving the cost of a mutual fund. <snip> ... and she could diversify the credit risk across perhaps as many as ten...
by Doc
Wed Apr 27, 2016 1:12 pm
Forum: Investing - Theory, News & General
Topic: Allan Roth on why bond funds are better than individual bonds
Replies: 63
Views: 4741

Re: Allan Roth on why bond funds are better than individual bonds

Larry specified government bonds or gov't agencies - not Total Bond Market. Doc, The main reasons to Larry says to avoid corporates are (1) risk when investing in individual bonds and (2) that they don't compensate enough for their risk. As it is supposedly easy to adjust risk/returns with "ju...
by Doc
Wed Apr 27, 2016 12:06 pm
Forum: Investing - Theory, News & General
Topic: Vanguard Manager Changes
Replies: 9
Views: 870

Re: Vanguard Manager Changes

How much manager influence matter for index funds? Fund follow index, I would assume that all sampling done by computers. For index funds I am concerned with index turnover more than manager turnover. For example Vanguard small cap value: S&P SmallCap 600 Value Index (formerly known as the S&am...
by Doc
Wed Apr 27, 2016 11:56 am
Forum: Investing - Theory, News & General
Topic: Allan Roth on why bond funds are better than individual bonds
Replies: 63
Views: 4741

Re: Allan Roth on why bond funds are better than individual bonds

I'm a bit baffled by your challenges to people, and why you think they would choose respond or engage, and why you choose to taunt them when they fail to choose to do so. Da5id, Here's what Larry wrote earlier in this thread : Longinvest Diversifying across maturities can just as easily be done wit...
by Doc
Wed Apr 27, 2016 10:48 am
Forum: Investing - Theory, News & General
Topic: Taxable Account - Bonds - Diversification vs. Tax
Replies: 10
Views: 921

Re: Taxable Account - Bonds - Diversification vs. Tax

4) You look for a more tax efficient replacement for existing your bond fund if necessary. Right. Breaking your TBM fund into its components can easily give you better tax efficiency. A short Treasury fund is very likely to be more tax efficient than a TSM fund for many of us. Likewise an intermedi...
by Doc
Wed Apr 27, 2016 10:40 am
Forum: Investing - Theory, News & General
Topic: Allan Roth on why bond funds are better than individual bonds
Replies: 63
Views: 4741

Re: Allan Roth on why bond funds are better than individual bonds

Larry, I understand that you're not willing to take the challenge to prove that you can easily beat the market. Thanks! That was very instructive, indeed. Best regards, longinvest It's not about beating any market. The issue is whether or not bond funds are better than individual bonds where both p...
by Doc
Tue Apr 26, 2016 5:00 pm
Forum: Investing - Theory, News & General
Topic: Wrong cost basis method used by Vanguard
Replies: 58
Views: 6419

Re: Wrong cost basis method used by Vanguard

It does take Vanguard a long time to mail the verifications, in my experience. If I remember correctly, mine have arrived at times after maybe 4 or 5 months, but before tax time. -- Tet They are now getting corrected confirmations out (online) the the next business day at least if they are notified...
by Doc
Tue Apr 26, 2016 4:57 pm
Forum: Investing - Theory, News & General
Topic: Wrong cost basis method used by Vanguard
Replies: 58
Views: 6419

Re: Wrong cost basis method used by Vanguard

I specify and make sure it's updated properly. It is up to the investor to do this ahead of any transaction. If it's Vanguard's mistake (and when it's been in my case), Vanguard should and will correct it--I can't imagine they wouldn't, that would be illegal. On anything done online or by phone, it...
by Doc
Tue Apr 26, 2016 4:49 pm
Forum: Investing - Theory, News & General
Topic: Wrong cost basis method used by Vanguard
Replies: 58
Views: 6419

Re: Wrong cost basis method used by Vanguard

523HRR wrote:Yikes. Vanguard needs to fix this asap.

ASAP? Did you note the date of the first post? January 5, 2016. :annoyed
by Doc
Mon Apr 25, 2016 10:27 am
Forum: Investing - Theory, News & General
Topic: Wrong cost basis method used by Vanguard
Replies: 58
Views: 6419

Re: Wrong cost basis method used by Vanguard

The Flagship rep talked to the cost basis group and said he wasn't given a reason why the glitch happened, but they'd correct it, and it'd take a few days to show up in my account. By "correct it" they mean they will correct this one transaction but they are apparently not fixing the orig...
by Doc
Sun Apr 24, 2016 4:48 pm
Forum: Investing - Theory, News & General
Topic: What to include when calculating asset allocation?
Replies: 4
Views: 478

Re: What to include when calculating asset allocation?

No. No one knows what the tax situation will be like 10, 20, or 30 years down the road. To mentally discount pre-tax assets is one thing. To discount in the AA is unnecessarily complicated. There has been a lot of discussion on this board in the past. The general consensus is the you should discoun...
by Doc
Thu Apr 21, 2016 8:39 am
Forum: Investing - Theory, News & General
Topic: Bond Fund Strategy?
Replies: 26
Views: 2748

Re: Bond Fund Strategy?

Something like: 25% short term government index 25% short term corporate index (investment grade) 25% intermediate term government (maybe VFIJX - Vanguard GNMA) 25% intermediate term corporate index (investment grade) That comes very close to iShares Intermediate Government/Credit Bond ETF GVI whic...
by Doc
Wed Apr 20, 2016 11:16 am
Forum: Investing - Theory, News & General
Topic: Vanguard Publishes Duration and Holdings Of Core Bond Fund
Replies: 14
Views: 1799

Re: Vanguard Publishes Duration and Holdings Of Core Bond Fund

Looks like they are updating the holdings yet. It doesn't make sense to list 31% Treasury/Agency bonds and then list them as 23% in the Government Bonds column. The terminology here always confuses me. From Fidelity: Agency debt also known as an Agency bond is a security, usually a bond, issued by ...
by Doc
Tue Apr 19, 2016 2:22 pm
Forum: Investing - Theory, News & General
Topic: Wrong cost basis method used by Vanguard
Replies: 58
Views: 6419

Re: Wrong cost basis method used by Vanguard

Problem still occuring sporadically. Two trades made on Monday. One OK and the other SpecID changed to FIFO.

I think Vg IT is in denial. Please post occurrences and complain to Vg.
by Doc
Tue Apr 19, 2016 9:16 am
Forum: Investing - Theory, News & General
Topic: Creating a diversified bond portfolio - beyond VG's Total Bond fund
Replies: 24
Views: 3301

Re: Creating a diversified bond portfolio - beyond VG's Total Bond fund

The biggest problem with a TBM fund is the "a". You have all your bond segments in one basket. But we know that different bond segments behave differently in different markets. TBM has no TIPS and therefore doesn't give us any insurance against unexpected inflation. TBM has maybe 35% corpo...
by Doc
Mon Apr 18, 2016 11:05 am
Forum: Investing - Theory, News & General
Topic: Treasury Auction - Primary Dealers
Replies: 1
Views: 229

Treasury Auction - Primary Dealers

While researching the details of the upcoming TIPS auction I came across the list of Primary Dealers - those firms authorized to bid at Treasury auctions. I was very surprised at the number of foreign "owned" firms in the list. I can't even pronounce some of the names. I guess the whole wo...
by Doc
Sun Apr 17, 2016 4:57 pm
Forum: Investing - Help with Personal Investments
Topic: Tax Gain Harvesting with Vanguard Mutual Funds
Replies: 24
Views: 1634

Re: Tax Gain Harvesting with Vanguard Mutual Funds

I don't have time to read this whole thread so someone may have already answered. Exchanging from one share class to another class of the same fund is a non-taxable event . I have confirmed this with Vanguard and actually tested it. (Some CSRs are not well informed on this.) I even tried to convert ...
by Doc
Sat Apr 16, 2016 6:06 pm
Forum: Investing - Theory, News & General
Topic: Fidelity Spartan 500 Index Fund Dividend
Replies: 73
Views: 4600

Re: Fidelity Spartan 500 Index Fund Dividend

aj76er wrote:However, my experience is that the IT systems that Vanguard uses still has trouble with specID (see various threads on the topic).

Oh really? :D
by Doc
Sat Apr 16, 2016 2:54 pm
Forum: Investing - Theory, News & General
Topic: Fidelity Spartan 500 Index Fund Dividend
Replies: 73
Views: 4600

Re: Fidelity Spartan 500 Index Fund Dividend

However, in a taxable account, ETF's win hands-down because you can control your tax liability, which is very important. For example, you can choose to sell lots with high cost basis, do precise TLH, etc. Plus, due to the mechanics of how ETF's are run, they don't distribute capgains too often, so ...
by Doc
Sat Apr 16, 2016 2:42 pm
Forum: Investing - Theory, News & General
Topic: TIP 5-yr Indicative Yield -.323 today
Replies: 12
Views: 1315

Re: TIP 5-yr Indicative Yield -.323 today

For a new issue, I think the Treasury's Real Yield Curve page is pretty accurate, and it's showing -0.20%. https://www.treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield Interesting the WSJ is showing -.244 and -.278 for the Jan 2021 and the July 2021 r...
by Doc
Fri Apr 15, 2016 3:40 pm
Forum: Investing - Theory, News & General
Topic: TIP 5-yr Indicative Yield -.323 today
Replies: 12
Views: 1315

Re: TIP 5-yr Indicative Yield -.323 today

elgob.bogle wrote:FWIW - Vanguard lists (8:20 AM EST 15 Apr 2016) "Indicative Yield" at -.295

elgob

FWIW: $2.52 on a $10k investment. :D

But thanks for not making me update the indicative yield, :beer
by Doc
Thu Apr 14, 2016 7:19 pm
Forum: Investing - Theory, News & General
Topic: TIP 5-yr Indicative Yield -.323 today
Replies: 12
Views: 1315

Re: TIP 5-yr Indicative Yield -.323 today

#Cruncher wrote:Doc in this post wrote:
... and the TIPS composite is 1.64%.
Doc meant to say the current I Bond composite rate is 1.64% (for I Bonds purchased between now and the end of April.)

Thanks. :oops:
by Doc
Thu Apr 14, 2016 1:22 pm
Forum: Investing - Theory, News & General
Topic: TIP 5-yr Indicative Yield -.323 today
Replies: 12
Views: 1315

Re: TIP 5-yr Indicative Yield -.323 today

So in a taxable account we will have both Original Issue Discount (OID) and Amortized Bond Premium (ABP) on the same issue. The IRS cost reporting rules for TIPS were effective January 1, 2016. Anyone want to take bets on which brokers will be able to comply with both OID and ABP at the same time? ...
by Doc
Thu Apr 14, 2016 12:13 pm
Forum: Investing - Theory, News & General
Topic: TIP 5-yr Indicative Yield -.323 today
Replies: 12
Views: 1315

Re: TIP 5-yr Indicative Yield -.323 today

So in a taxable account we will have both Original Issue Discount (OID) and Amortized Bond Premium (ABP) on the same issue. The IRS cost reporting rules for TIPS were effective January 1, 2016. Anyone want to take bets on which brokers will be able to comply with both OID and ABP at the same time? I...
by Doc
Thu Apr 14, 2016 11:42 am
Forum: Investing - Theory, News & General
Topic: Fidelity Spartan 500 Index Fund Dividend
Replies: 73
Views: 4600

Re: Fidelity Spartan 500 Index Fund Dividend

What I don't understand is how can Fidelity have a loss (if that's the case) and VTI not (they distributed dividends). Basically the same fund. Isn't one is a fund and the other an ETF? ETF's have more control of capital gains/losses because of their structure. They don't have to buy/sell shares to...
by Doc
Thu Apr 14, 2016 10:18 am
Forum: Investing - Theory, News & General
Topic: Schwab login issues
Replies: 5
Views: 335

Re: Schwab login issues

We are currently experiencing intermittent logon issues and are working to resolve them ASAP. For urgent trade-related issues, please call us at 800-435-4000. We’re very sorry for this inconvenience and thank you for your patience.
11:18 E
by Doc
Thu Apr 14, 2016 10:16 am
Forum: Investing - Theory, News & General
Topic: Fidelity Spartan 500 Index Fund Dividend
Replies: 73
Views: 4600

Re: Fidelity Spartan 500 Index Fund Dividend

From the prospectus: Dividends and Capital Gain Distributions The fund earns dividends, interest, and other income from its investments, and distributes this income ( less expenses ) to shareholders as dividends. The fund also realizes capital gains from its investments, and distributes these gains ...
by Doc
Thu Apr 14, 2016 8:56 am
Forum: Investing - Theory, News & General
Topic: Fidelity Spartan 500 Index Fund Dividend
Replies: 73
Views: 4600

Re: Fidelity Spartan 500 Index Fund Dividend

FUSVX posted an ordinary dividend the first week of April since 2005 except for 2006 and 2010.

http://finance.yahoo.com/q/hp?s=FUSVX&a ... f=2016&g=v
by Doc
Mon Apr 11, 2016 2:57 pm
Forum: Investing - Theory, News & General
Topic: TIPS - Did you give up?
Replies: 169
Views: 19807

Re: TIPS - Did you give up?

Nowizard wrote:Never will totally give up on TIPS Index fund.

Will never buy TIPS index fund but will buy $10k of five year TIPS at auction next week. (Also will buy $10k of nominals. Don't put all your fish Treasuries in one basket.) :D
by Doc
Mon Apr 11, 2016 11:16 am
Forum: Investing - Theory, News & General
Topic: "Vanguard converting mutual fund accounts to brokerage?
Replies: 387
Views: 51568

Re: "Vanguard converting mutual fund accounts to brokerage?

Unfortunately, IRAs are not allowed to be margin accounts. Brokers are not allowed to lend you money in an IRA. When I tried a same-day swap in my IRA, Schwab covered the transaction but sent me a nasty-gram warning me not to do that again! They said it was a common mistake/misunderstanding so alwa...
by Doc
Mon Apr 11, 2016 10:02 am
Forum: Investing - Theory, News & General
Topic: "Vanguard converting mutual fund accounts to brokerage?
Replies: 387
Views: 51568

Re: "Vanguard converting mutual fund accounts to brokerage?

I might have missed it in this thread, but what is the benefit to Vanguard for starting these conversions? Why are they doing this? Whenever I'm told that something will benefit me, I always wonder about the other side. Simplified systems is my guess. They have two and it's quite awkward. There use...
by Doc
Sun Apr 10, 2016 8:56 am
Forum: Investing - Theory, News & General
Topic: Has the inflation risk premium fallen? Is it now negative?
Replies: 22
Views: 2129

Re: Has the inflation risk premium fallen? Is it now negative?

In my testing, TIPS breakeven didn't do very well by itself, particularly if you include the 2008 experience. During the '08 period there was some speculation that deflation fears were partly a cause for the poor TIPS performance. The evidence for this was the better performance of the on the run i...
by Doc
Thu Apr 07, 2016 4:08 pm
Forum: Investing - Theory, News & General
Topic: Has the inflation risk premium fallen? Is it now negative?
Replies: 22
Views: 2129

Re: Has the inflation risk premium fallen? Is it now negative?

The paper includes: Inflation compensation = expected inflation + inflation risk premium + other factors What is often forgotten is the liquidity premium in nominals which is there as nominal Treasuries are the most liquid instrument in the world and thus command a liquidity premium (lower yields) ...
by Doc
Thu Apr 07, 2016 11:36 am
Forum: Investing - Theory, News & General
Topic: Bonds in Roth?
Replies: 12
Views: 1198

Re: Bonds in Roth?

This decision gets lots of discussion, but I don't think it is all that important in most cases. It is more important to fill your 401k and Roth than what you put in each one. So definitely don't decide which one to put money into by which whether you are investing in stocks or bonds. I think the e...
by Doc
Thu Apr 07, 2016 10:03 am
Forum: Investing - Theory, News & General
Topic: Bonds in Roth?
Replies: 12
Views: 1198

Re: Bonds in Roth?

You're forgetting about the fact that you didn't pay tax on the 401k. This means you have more money there, which in turn compensates for the taxation (on everything, not just distributions) at withdrawal. Assuming the same tax rate of say 30% at withdrawal and an investment that goes up 100x in va...
by Doc
Wed Apr 06, 2016 4:59 pm
Forum: Investing - Theory, News & General
Topic: Vanguard "Your 2014 1099-DIV has been amended"
Replies: 13
Views: 1765

Re: Vanguard "Your 2014 1099-DIV has been amended"

Yep, I got one too! So what is actionable? Where does I start? I already have redone my taxes multiple times; are more corrections coming? You will have to decide for yourself what to do. As some guidence try a Google search on "requirement to file amended tax return". How is another matt...
by Doc
Wed Apr 06, 2016 8:47 am
Forum: Investing - Theory, News & General
Topic: Vanguard "Your 2014 1099-DIV has been amended"
Replies: 13
Views: 1765

Re: Vanguard "Your 2014 1099-DIV has been amended"

I would be interested to know if the changes resulted in an update to the December 31, 2014 statement. If not, that would imply that the original 1099 did not reconcile with the financial statement, right? I have had TaxAide clients where this occurred. We encourage some clients to bring their stat...
by Doc
Wed Apr 06, 2016 7:56 am
Forum: Investing - Theory, News & General
Topic: Vanguard "Your 2014 1099-DIV has been amended"
Replies: 13
Views: 1765

Re: Vanguard "Your 2014 1099-DIV has been amended"

Doc wrote: "HueyLD wrote: Do you know which investment(s) in your brokerage account that caused bookkeeping problems at Vanguard?" I can't tell from the 1099 or the cover letter. But from the types of funds/accounts we have I suspect that any fund that has monthy dividends is involved. Bu...
by Doc
Tue Apr 05, 2016 12:19 pm
Forum: Investing - Theory, News & General
Topic: Wrong cost basis method used by Vanguard
Replies: 58
Views: 6419

Re: Wrong cost basis method used by Vanguard

The original problem of changing the cost basis from SpecID to FIFO has reappeared. :(
by Doc
Tue Apr 05, 2016 6:22 am
Forum: Investing - Theory, News & General
Topic: Who needs Money Market accounts any more?
Replies: 55
Views: 6023

Re: Who needs Money Market accounts any more?

If I need Vanguard funds to our bank account quickly, it is actually faster to deposit a paper draft from the Vanguard account than going with ACH. I use a margin withdrawal at another broker and pay down the margin with Vg money. Two or three days interest @6% is not much. I don't use any type of ...
by Doc
Tue Apr 05, 2016 6:07 am
Forum: Investing - Theory, News & General
Topic: Vanguard "Your 2014 1099-DIV has been amended"
Replies: 13
Views: 1765

Re: Vanguard "Your 2014 1099-DIV has been amended"

tibbitts wrote:Were these errors regarding VG investments (funds, etfs) held in VG brokerage accounts, or some other types of investments?

We only have Vanguard funds and Treasury notes in our VBS taxable accounts. The T-notes do not pay dividends.
by Doc
Mon Apr 04, 2016 7:04 pm
Forum: Investing - Theory, News & General
Topic: Vanguard "Your 2014 1099-DIV has been amended"
Replies: 13
Views: 1765

Re: Vanguard "Your 2014 1099-DIV has been amended"

Do you know which investment(s) in your brokerage account that caused bookkeeping problems at Vanguard? I can't tell from the 1099 or the cover letter. But from the types of funds/accounts we have I suspect that any fund that has monthy dividends is involved. But maybe any fund that you received di...
by Doc
Mon Apr 04, 2016 5:45 pm
Forum: Investing - Theory, News & General
Topic: Vanguard "Your 2014 1099-DIV has been amended"
Replies: 13
Views: 1765

Re: Vanguard "Your 2014 1099-DIV has been amended"

In 2007
Livesoft wrote:PS: Ever since that very late corrected 1099, I now file my tax return in October.


October of which year. :twisted:

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