Search found 5931 matches

by Doc
Mon Feb 08, 2016 8:17 pm
Forum: Investing - Theory, News & General
Topic: Wrong cost basis method used by Vanguard
Replies: 37
Views: 3530

Re: Wrong cost basis method used by Vanguard

As of Thursday February 5 the problem still exists. On Friday February 6th the rep (after discussion with "experts") said the error would "self correct". As of Monday 2/8/16 @ 15:30 - not . As of Monday 2/8/16 @ 20:13 the position and realized gains have been corrected . There i...
by Doc
Mon Feb 08, 2016 4:15 pm
Forum: Investing - Theory, News & General
Topic: Hold International Funds in Roth IRA or Taxable Account?
Replies: 12
Views: 726

Re: Hold International Funds in Roth IRA or Taxable Account?

livesoft wrote:
Doc wrote:I have not looked at livesoft's math but he is competent.

You have, since you responded in that thread, but you have forgotten. :) House Blend also responded in that thread. :)

I'm old. If it happened twenty years ago I would remember. If it happened last month - not so much.
by Doc
Mon Feb 08, 2016 3:47 pm
Forum: Investing - Theory, News & General
Topic: Hold International Funds in Roth IRA or Taxable Account?
Replies: 12
Views: 726

Re: Hold International Funds in Roth IRA or Taxable Account?

I always take the tax credit, too. But do the math. It is not about international funds in taxable. It is about the tax-efficiency and total tax after FTC of the entire portfolio. Thus, I don't think your question can be answered properly on the face of it. Another complication is that things chang...
by Doc
Mon Feb 08, 2016 3:37 pm
Forum: Investing - Theory, News & General
Topic: Wrong cost basis method used by Vanguard
Replies: 37
Views: 3530

Re: Wrong cost basis method used by Vanguard

As of Thursday February 5 the problem still exists. On Friday February 6th the rep (after discussion with "experts") said the error would "self correct". As of Monday 2/8/16 @ 15:30 - not. Please everyone keep this thread going. Vanguard needs to continue to be kicked in the sass...
by Doc
Mon Feb 08, 2016 3:22 pm
Forum: Investing - Help with Personal Investments
Topic: Is This An Acceptable Tax Loss Harvest?
Replies: 27
Views: 1589

Re: Is This An Acceptable Tax Loss Harvest?

@inbox788 The point is "we don't know". You can sell/buy the exact same fund in separate accounts and the IRS probably would never know. You can trade an S&P 500 for a Dow Jones 700. The returns are going to be very close - maybe identical. Are they substantially identical? You can tra...
by Doc
Mon Feb 08, 2016 1:31 pm
Forum: Investing - Theory, News & General
Topic: Asset location strategies for taxes are OK; but not great
Replies: 52
Views: 5349

Re: Asset location strategies for taxes are OK; but not great

60k of SS 20k OI (RMDS/interest) 20k of LTGC 2831. Call it 3% ... Thanks for your analysis randomguy. I found it very enlightening. Unfortunately randomguy is calculating the average tax on the entire income not the marginal tax on the smaller amount that represents the assets being located. You ca...
by Doc
Mon Feb 08, 2016 7:25 am
Forum: Investing - Theory, News & General
Topic: Asset location strategies for taxes are OK; but not great
Replies: 52
Views: 5349

Re: Asset location strategies for taxes are OK; but not great

Your marginal rate might be 28%+ but the reality is you are paying little in taxes. But if you are deciding if that last $1000 of short term bonds should be in taxable it is the marginal rate that counts. If your taxable income is $30k that extra $1000 may be taxed at 28% but if your taxable income...
by Doc
Sun Feb 07, 2016 6:42 pm
Forum: Investing - Theory, News & General
Topic: Asset location strategies for taxes are OK; but not great
Replies: 52
Views: 5349

Re: Asset location strategies for taxes are OK; but not great

Your marginal rate might be 28%+ but the reality is you are paying little in taxes. But if you are deciding if that last $1000 of short term bonds should be in taxable it is the marginal rate that counts. If your taxable income is $30k that extra $1000 may be taxed at 28% but if your taxable income...
by Doc
Sun Feb 07, 2016 12:32 pm
Forum: Investing - Theory, News & General
Topic: [Vanguard Brokerage Services] 1099Bs Issued at the End of Feb
Replies: 26
Views: 1735

Re: [Vanguard Brokerage Services] 1099Bs Issued at the End of Feb

From Schwab: (Composite) The Emergency Economic Stabilization Act of 2008 extended the regulatory mail date deadline for the 1099 Composite from January 31 to February 15 . Schwab sends out 1099 Composites in two mailings. The first mailing is sent out in late January to clients that hold securities...
by Doc
Sat Feb 06, 2016 2:44 pm
Forum: Personal Finance (Not Investing)
Topic: Tax rate on IRA withdrawal when on Social Security
Replies: 28
Views: 2038

Re: Tax rate on IRA withdrawal when on Social Security

Doc: Given our pensions, 85% of our SS is taxed. To estimate our taxes, I calculated our AGI and MAGI by summing our sources of income excluding SS and then added 85% of SS income. Next, I calculated our Federal Taxable Income by subtracting our standard deduction and exemptions from MAGI. Then, I ...
by Doc
Sat Feb 06, 2016 1:14 pm
Forum: Investing - Theory, News & General
Topic: Asset location strategies for taxes are OK; but not great
Replies: 52
Views: 5349

Re: Asset location strategies for taxes are OK; but not great

you are in the 15% bracket but your tax burden is zero. For people with middle class spending needs (50-60k. I.E. something like 80-110k gross income for a working couple who was saving 10-15% and paying it all as OI with payroll taxes) needs, zero is a pretty good ballpark estimate for federal tax...
by Doc
Fri Feb 05, 2016 5:46 pm
Forum: Investing - Theory, News & General
Topic: Take the Verb Tense Pledge!
Replies: 69
Views: 3758

Re: Take the Verb Tense Pledge!

No.

xx

Can't post no how, no way unless there are five characters and I only needed three to say what I wanted to say. "No."

Grumpy, Happy, Sleepy, Bashful and Doc. The heck with Sneezy and Dopey. I only needed five.
by Doc
Fri Feb 05, 2016 4:53 pm
Forum: Investing - Theory, News & General
Topic: Asset location strategies for taxes are OK; but not great
Replies: 52
Views: 5349

Re: Asset location strategies for taxes are OK; but not great

Marginal federal tax rate: 10% (as the next dollar withdrawn from the tIRA is taxed at 10%) Total federal tax: ZERO You forgot Social Security. Depending on what inflation does to the tax brackets ans SS phase out limits your tIRA effective rate is going to be 18.5% or 27.75% and you QD/LTCG is goi...
by Doc
Fri Feb 05, 2016 9:19 am
Forum: Investing - Theory, News & General
Topic: Seeking Sample IPS (Investment Policy Statements)
Replies: 3
Views: 298

Re: Seeking Sample IPS (Investment Policy Statements)

At one time M* had a very simple fill in form. Could try there.
by Doc
Thu Feb 04, 2016 8:19 pm
Forum: Personal Finance (Not Investing)
Topic: Tax rate on IRA withdrawal when on Social Security
Replies: 28
Views: 2038

Re: Tax rate on IRA withdrawal when on Social Security

Yes, because of the way Social Security benefits are taxed, the marginal tax rate on other types of income while collecting Social Security is often much higher than one's tax bracket (e.g., 22.5% or 27.75% marginal tax rate in the 15% tax bracket). It's the result of each dollar of ordinary income...
by Doc
Thu Feb 04, 2016 6:15 pm
Forum: Investing - Help with Personal Investments
Topic: Is This An Acceptable Tax Loss Harvest?
Replies: 27
Views: 1589

Re: Is This An Acceptable Tax Loss Harvest?

Would you agree that voting is a bigger difference than the Investor vs Admiral mutual fund shares? You could also argue that an ETF and a mutual fund are NOT essentially the same thing. This would probably be a good test case to see now narrow they define essentially. But I won't be the test case ...
by Doc
Thu Feb 04, 2016 12:05 pm
Forum: Investing - Help with Personal Investments
Topic: Is This An Acceptable Tax Loss Harvest?
Replies: 27
Views: 1589

Re: Is This An Acceptable Tax Loss Harvest?

I've done both, but the problem with using different accounts (sell in one and buy in the other) is that you need to use either cash or bonds to do the purchase. A problem with the buy/sell in the same account is that you may wind up with a "second choice" postion for a long long time. Bu...
by Doc
Thu Feb 04, 2016 7:55 am
Forum: Investing - Help with Personal Investments
Topic: Is This An Acceptable Tax Loss Harvest?
Replies: 27
Views: 1589

Re: Is This An Acceptable Tax Loss Harvest?

Kevin M wrote:I would not TLH two index funds that follow the same index, but I'd TLH just about any funds or combination of funds short of that.

I take the same approach but also usually use a different account JIC.
by Doc
Wed Feb 03, 2016 2:47 pm
Forum: Investing - Help with Personal Investments
Topic: Is This An Acceptable Tax Loss Harvest?
Replies: 27
Views: 1589

Re: Is This An Acceptable Tax Loss Harvest?

In general, unless you are audited, the IRS is not going to analyze every trade and try and determine what is substantially similar. I'm sure their software does automatically find wash sales of the same security. If I sold 1000 xyz at a loss in my account on December 10th 2015 and DW bought 1000 x...
by Doc
Wed Feb 03, 2016 10:38 am
Forum: Investing - Help with Personal Investments
Topic: Wash sale question - different though i promise!
Replies: 6
Views: 469

Re: Wash sale question - different though i promise!

I'll answer the question in the different way. You *never* "lose" the losses. You only *defer* them to when you finally sell the stock at the end by adjusting the basis for the newly bought stock higher. Not quite. If you're "substantially identical" replacement is in a tax adva...
by Doc
Wed Feb 03, 2016 10:35 am
Forum: Investing - Help with Personal Investments
Topic: Is This An Acceptable Tax Loss Harvest?
Replies: 27
Views: 1589

Re: Is This An Acceptable Tax Loss Harvest?

The roboadvisors very openly trade pairs that are much more similar than what you are proposing. :wink: Can you give us some examples? Wealthfront pairs VWO with IEMG. Both offer exposure to emerging markets. OP is talking about pairing a fund that has EM with a fund that doesn't. That is a big dif...
by Doc
Wed Feb 03, 2016 6:58 am
Forum: Investing - Help with Personal Investments
Topic: Is This An Acceptable Tax Loss Harvest?
Replies: 27
Views: 1589

Re: Is This An Acceptable Tax Loss Harvest?

rmelvey wrote:The roboadvisors very openly trade pairs that are much more similar than what you are proposing. :wink:

Can you give us some examples?
by Doc
Tue Feb 02, 2016 6:39 pm
Forum: Investing - Help with Personal Investments
Topic: VTSAX vs FSTVX [Vanguard vs. Fidelity Total Stock Market]
Replies: 16
Views: 1319

Re: VTSAX vs FSTVX

Say what?

3,5,10 year returns

Code: Select all

VTSAX 10.13   10.00   6.49
FSTVX 10.08    9.96   6.43


as of 2/1/16 per Morningstar
by Doc
Tue Feb 02, 2016 10:37 am
Forum: Investing - Theory, News & General
Topic: Wrong cost basis method used by Vanguard
Replies: 37
Views: 3530

Re: Wrong cost basis method used by Vanguard

tomcallahan wrote:Sure, here are more details.

I hope someone at Vanguard is looking at this thread. It might give them some idea of what's wrong. The ten business days was apparently not enough to fix the problem.
by Doc
Tue Feb 02, 2016 8:39 am
Forum: Investing - Theory, News & General
Topic: Wrong cost basis method used by Vanguard
Replies: 37
Views: 3530

Re: Wrong cost basis method used by Vanguard

I use average basis. Vanguard has been on the money for the 17 years I have been recording transactions with them :happy The problem may be limited to Spec ID, exchanges (not sales to cash), losses (not sure here) and trades occurring since January 1, 2016. And maybe it's just on the brokerage side...
by Doc
Tue Feb 02, 2016 8:19 am
Forum: Investing - Theory, News & General
Topic: Wrong cost basis method used by Vanguard
Replies: 37
Views: 3530

Re: Wrong cost basis method used by Vanguard

I had the same problem as other posters! After an hour on the phone with Vanguard they tell me the latest issue won't be fixed for 7-10 business days . Ed's post was on Jan 11. Ten days makes it Jan 26 if you count only business days excluding MLB holiday. Tom, when did you have the problem? It wou...
by Doc
Thu Jan 28, 2016 2:06 pm
Forum: Investing - Theory, News & General
Topic: "Are You Holding Your Assets in the Right Types of Accounts?"
Replies: 5
Views: 1530

Re: "Are You Holding Your Assets in the Right Types of Accounts?"

So, how should you navigate this confusing landscape? There are no one-size-fits-all solutions , and it's worth revisiting your asset-location framework every few years, to make sure your plan syncs up with the current tax rules. Retirees, in particular, may want to keep their tax-sheltered and tax...
by Doc
Wed Jan 27, 2016 7:06 pm
Forum: Investing - Theory, News & General
Topic: Foreign ETF Trading - Best Practice
Replies: 41
Views: 1740

Re: Foreign ETF Trading - Best Practice

BlueEars wrote:I am not inferring something else about your strategies so hope your bogleheads/boneheads has nothing to do with my comments. And yes, I see that spell checker indeed does what you say.

:D No nothing to do with you.
by Doc
Wed Jan 27, 2016 5:51 pm
Forum: Investing - Theory, News & General
Topic: Foreign ETF Trading - Best Practice
Replies: 41
Views: 1740

Re: Foreign ETF Trading - Best Practice

Doc, are you holding the VEA as an ETF because you might want to do some tax loss harvesting? Or did it just turn out this way? I'm holding it for 30 days in tax advantaged in a TLH pair for another Foreign LCap Developed ETF. I just picked it as an example because it is more familiar to Bogleheads...
by Doc
Wed Jan 27, 2016 4:36 pm
Forum: Investing - Theory, News & General
Topic: Foreign ETF Trading - Best Practice
Replies: 41
Views: 1740

Re: Foreign ETF Trading - Best Practice

If that's not good enough execution for you then you should definitely be using a mutual fund. So instead of being in the dark buying a foreign ETF at 1559 with some 5 or 6 hours of "stale" data your suggestion is to buy a mutual fund with 24 hours of stale data because the data is from y...
by Doc
Tue Jan 26, 2016 11:38 am
Forum: Investing - Theory, News & General
Topic: Foreign ETF Trading - Best Practice
Replies: 41
Views: 1740

Re: Foreign ETF Trading - Best Practice

Depending on the investor they might also be trading on the basis of news, anticipating an up or down move when the European market opens, so rather than trading on the basis of stale data they're trading on information that was released "after the bell" in the home-country market, so was...
by Doc
Mon Jan 25, 2016 3:38 pm
Forum: Investing - Theory, News & General
Topic: Foreign ETF Trading - Best Practice
Replies: 41
Views: 1740

Re: Foreign ETF Trading - Best Practice

I will say that for heavily traded high volume highly liquid foreign ETFs such as EFA, VWO, VEA, VEU that the prices that these trade at are a better indication of value than any NAV or IVV calculation. If one is trying to use these ETFs to decide whether to buy/sell the mutual fund at the end of t...
by Doc
Mon Jan 25, 2016 1:16 pm
Forum: Investing - Theory, News & General
Topic: Foreign ETF Trading - Best Practice
Replies: 41
Views: 1740

Re: Foreign ETF Trading - Best Practice

I am not quite sure who these "best practices" are for or what they are for. I would suggest the "who" is any ETF investor and the "why" is so that we don't make stupid mistakes. A lot of sites have "Best ETF practice" discussions including Vanguard, Mornings...
by Doc
Mon Jan 25, 2016 11:54 am
Forum: Investing - Theory, News & General
Topic: Foreign ETF Trading - Best Practice
Replies: 41
Views: 1740

Re: Foreign ETF Trading - Best Practice

My spreadsheet tracks two versions of my portfolio: my real portfolio, which is all Admiral shares except for VSS, and an ETF simulation which tracks an ETF portfolio that matches my real portfolio at ETF-NAV. So I see the discount and premiums every day. I don't understand. Are you looking onl...
by Doc
Mon Jan 25, 2016 11:29 am
Forum: Investing - Theory, News & General
Topic: Foreign ETF Trading - Best Practice
Replies: 41
Views: 1740

Re: Foreign ETF Trading - Best Practice

BlueEars wrote:And what about the fair value pricing at VG? I don't know the answer to your extra credit question but it reminds me of exams in college ... not a good feeling. Thankfully I don't have to answer this but will tune in for the smarty pants that gets it right.

:D The $64 question.
by Doc
Mon Jan 25, 2016 11:02 am
Forum: Investing - Theory, News & General
Topic: Foreign ETF Trading - Best Practice
Replies: 41
Views: 1740

Foreign ETF Trading - Best Practice

Best practice for trading ETF's often include "Avoid Placing Orders Near the Open and Close." So what does this mean if you are trading a foreign ETF? European exchanges typically have a closing time of 11:30 eastern. So combining the two ideas one would think that trading around 11:00 Eas...
by Doc
Mon Jan 25, 2016 10:59 am
Forum: Personal Finance (Not Investing)
Topic: Co-owner of safe deposit box?
Replies: 13
Views: 1146

Re: Co-owner of safe deposit box?

We keep a copy of our wills in our house with a note saying the originals are in the attorney's office (with contact info). The attorney keeps them in a safe there. That way there is jo need to have anyone else's name added to our safe deposit box. Once upon a time I read that a jointly owned box w...
by Doc
Mon Jan 25, 2016 10:54 am
Forum: Personal Finance (Not Investing)
Topic: Foreign ETF Trading - Best Practice
Replies: 0
Views: 144

Foreign ETF Trading - Best Practice

Moved to theory.
by Doc
Mon Jan 25, 2016 10:17 am
Forum: Personal Finance (Not Investing)
Topic: Vanguard incorrectly flagged wash sale - what to do?
Replies: 27
Views: 2220

Re: Vanguard incorrectly flagged wash sale - what to do?

Oh, another thing: In the Vanguard display of cost basis, the "Total cost" column is not necessarily one's total cost. Instead it is really the "Adjusted cost". Vanguard might learn something by having its IT folks open accounts at other brokers to see how other brokers display ...
by Doc
Mon Jan 25, 2016 9:52 am
Forum: Personal Finance (Not Investing)
Topic: Vanguard incorrectly flagged wash sale - what to do?
Replies: 27
Views: 2220

Re: Vanguard incorrectly flagged wash sale - what to do?

There is a lot of information in this thread that is misleading or just wrong. I suggest that interest parties carefully read Kaye Thomas' discussion on the Fairmark site. In particular selling recently purchases securities at a loss does not create a wash sale if these are the only two transactions...
by Doc
Fri Jan 22, 2016 9:58 am
Forum: Investing - Theory, News & General
Topic: Hold risk constant or hold return constant?
Replies: 132
Views: 6399

Re: Hold risk constant or hold return constant?

Is there a measure of risk that works well for all investors? Sharpe has said that risk is the chance of not having enough money in bad times. An investment is risky to the extent it loses money in bad times. Timing of loses matters. If you wanted to quantify this, perhaps you could look at covaria...
by Doc
Thu Jan 21, 2016 7:21 pm
Forum: Investing - Theory, News & General
Topic: Hold risk constant or hold return constant?
Replies: 132
Views: 6399

Re: Hold risk constant or hold return constant?

It's been a long time since I read Sharpe but IIRC he developed the risk/return theory and then tested various measures of "risk" and the best fit for the data was SD. I'm not sure what you mean by "best fit for the data". If there was any examination of peoples actual behavior ...
by Doc
Thu Jan 21, 2016 6:41 pm
Forum: Investing - Theory, News & General
Topic: Hold risk constant or hold return constant?
Replies: 132
Views: 6399

Re: Hold risk constant or hold return constant?

Is there a measure of risk that works well for all investors? If you look at CAPM the answer is standard deviation or in other words variance. It is uncertainty. But when we get into these discussions the thoughts often goes to the idea of losing money. CAPM defines risk as s.d. for the purposes of...
by Doc
Thu Jan 21, 2016 2:45 pm
Forum: Investing - Theory, News & General
Topic: Hold risk constant or hold return constant?
Replies: 132
Views: 6399

Re: Hold risk constant or hold return constant?

If you belive that in efficient markets risk and reward are negatively correlated. People are willing to take more risk for higher returns. So in the long run it shouldn't matter. So you are basically asking sure you control on x or 1/x. It doesn't matter. That being said in the long run we are goi...
by Doc
Thu Jan 21, 2016 2:02 pm
Forum: Investing - Theory, News & General
Topic: Is TLH roughly as good as breaking even?
Replies: 19
Views: 1572

Re: Is TLH roughly as good as breaking even?

You can also apply capital losses of up to $3,000 per year against ordinary income (which is taxed at a higher rate than capital gains) and if you have more than $3,000 in losses you can carry it forward to subsequent years. This still won't be as good as if the loss never happened, but it's a larg...
by Doc
Thu Jan 21, 2016 11:35 am
Forum: Investing - Theory, News & General
Topic: Hold risk constant or hold return constant?
Replies: 132
Views: 6399

Re: Hold risk constant or hold return constant?

If you belive that in efficient markets risk and reward are negatively correlated. People are willing to take more risk for higher returns. So in the long run it shouldn't matter. So you are basically asking sure you control on x or 1/x. It doesn't matter. That being said in the long run we are goin...
by Doc
Wed Jan 20, 2016 3:40 pm
Forum: Investing - Theory, News & General
Topic: Why does Total Bond Market have so many capital gains distributions?
Replies: 18
Views: 1735

Re: Why does Total Bond Market have so many capital gains distributions?

Interesting. So is this just a case of bond indexing requirements i.e. tracking the index as close as possible, even if it triggers capital gains. I noticed the vanguard muni funds, which are not indexed, distribute almost no capital gains, if none at all in the last few years. That's why many acti...
by Doc
Tue Jan 19, 2016 1:47 pm
Forum: Investing - Theory, News & General
Topic: "Do You Need to Diversify by Fund Company?"
Replies: 51
Views: 3631

Re: "Do You Need to Diversify by Fund Company?"

It's not about whether you get your money back. It's when.
by Doc
Mon Jan 18, 2016 4:33 pm
Forum: Investing - Theory, News & General
Topic: "Do You Need to Diversify by Fund Company?"
Replies: 51
Views: 3631

Re: "Do You Need to Diversify by Fund Company?"

Do You Need to Diversify by Fund Company? Yes. Sith happens. Friday after close of business Vanguard's site went down. We had an open issue. It can't be resolved until tomorrow. Three days later. For those of us that went through the S&L crisis we have a concern. The savings and loan crisis of t...
by Doc
Mon Jan 18, 2016 1:34 pm
Forum: Investing - Theory, News & General
Topic: Best Vanguard Small Value ETF
Replies: 18
Views: 1219

Re: Best Vanguard Small Value ETF

Go here http://etfdb.com/etfdb-category/small-c ... -equities/ and then examine the 16 or so small value ERF's available. The first five all have reasonable volume. IMNERHO

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