Search found 6433 matches

by Doc
Mon Aug 29, 2016 11:47 am
Forum: Investing - Theory, News & General
Topic: Automatic Vanguard brokerage account upgrades
Replies: 28
Views: 1630

Re: Automatic Vanguard brokerage account upgrades

It had the same language about "unsettled shares" as well as that on the check info it said it had a 7 day hold on it. Well 2 days later the hold was gone and I was able to buy all the ETFs I wanted. The "7 day hold" is archaic language from last century when brokerage trades se...
by Doc
Mon Aug 29, 2016 8:47 am
Forum: Investing - Theory, News & General
Topic: Automatic Vanguard brokerage account upgrades
Replies: 28
Views: 1630

Re: Automatic Vanguard brokerage account upgrades

I don't like the experience of having my settlement money market fund changed--to one with a lower yield--without my asking for it, but I don't see this as Vanguard's fault . And in my case they didn't actually move any money out of Prime into Federal, and I assume they didn't do this for anyone. W...
by Doc
Mon Aug 29, 2016 8:03 am
Forum: Investing - Theory, News & General
Topic: Automatic Vanguard brokerage account upgrades
Replies: 28
Views: 1630

Re: Automatic Vanguard brokerage account upgrades

^OK, thanks. But that also means that nothing has changed with the upgrade: What one could do before, one can still do. You cannot direct dividends to be reinvested in a different fund on the VBS platform. I have no knowledge if this was/is possible on the mutual fund platform. If you use direct de...
by Doc
Sun Aug 28, 2016 5:48 pm
Forum: Investing - Theory, News & General
Topic: Automatic Vanguard brokerage account upgrades
Replies: 28
Views: 1630

Re: Automatic Vanguard brokerage account upgrades

But I do have a cash balance at Vanguard that I can't place the order to move until Monday. I think it will then take two business days to get to bank unless they make the MM change on Monday when it may be four days. So is it confirmed that one can no longer have mutual fund sale proceeds go direc...
by Doc
Sun Aug 28, 2016 4:18 pm
Forum: Investing - Theory, News & General
Topic: Automatic Vanguard brokerage account upgrades
Replies: 28
Views: 1630

Re: Automatic Vanguard brokerage account upgrades

Dirghatamas wrote: Anyway, butting into this thread I guess my question would be for those of us who were already "upgraded" to brokerage account by Vanguard: do we have to make this settlement fund shift to this new Federal Money Market ourselves or will VG just automagically do it for u...
by Doc
Sun Aug 28, 2016 3:45 pm
Forum: Investing - Theory, News & General
Topic: Automatic Vanguard brokerage account upgrades
Replies: 28
Views: 1630

Re: Automatic Vanguard brokerage account upgrades

Anyway, butting into this thread I guess my question would be for those of us who were already "upgraded" to brokerage account by Vanguard: do we have to make this settlement fund shift to this new Federal Money Market ourselves or will VG just automagically do it for us? I am fine if the...
by Doc
Sun Aug 28, 2016 9:11 am
Forum: Investing - Theory, News & General
Topic: Automatic Vanguard brokerage account upgrades
Replies: 28
Views: 1630

Re: Automatic Vanguard brokerage account upgrades

I know there are a zillion threads on upgrading Vanguard accounts from the old platform to the new platform, and this may have been mentioned already, but Vanguard has automatically upgraded a couple of my brokerage accounts ; the did not upgrade the the mutual fund accounts that were linked to the...
by Doc
Sat Aug 27, 2016 6:51 pm
Forum: Investing - Theory, News & General
Topic: TIPS - Did you give up?
Replies: 291
Views: 32051

Re: TIPS - Did you give up?

FIREchief wrote:. I'll probably build my final plan around 5 and 10 year TIPS, although if thirty year TIPS suddenly return to a higher real return, I may rethink that.

Duh! That's what iI have been (perhaps inartfully) trying to imply. :oops: :wink:
by Doc
Sat Aug 27, 2016 2:41 pm
Forum: Investing - Theory, News & General
Topic: TIPS - Did you give up?
Replies: 291
Views: 32051

Re: TIPS - Did you give up?

As a TIPS buyer, I would be delighted to accept one of those. To do so will totally contradict your earlier position that TIPS are "very expensive" right now. If inflation is 2.1% over the next five years, then the five year TIPS will return -.08% real and a total bond market fund (5.5 ye...
by Doc
Sat Aug 27, 2016 2:23 pm
Forum: Investing - Theory, News & General
Topic: TIPS - Did you give up?
Replies: 291
Views: 32051

Re: TIPS - Did you give up?

Are you saying that you are "unaware" of the state-to-state differences in how qualified, non-ERISA, retirement funds are protected from creditors? If you don't think there is an issue, then you must not live in a state like California! You're right. I don't live in California. Actually i...
by Doc
Sat Aug 27, 2016 12:18 pm
Forum: Investing - Theory, News & General
Topic: TIPS - Did you give up?
Replies: 291
Views: 32051

Re: TIPS - Did you give up?

Another choice is to build up a ladder over the years, buying annually at auction. You don't need to buy at auction. Secondary market spreads are very small. I would suggest multiples of $10k. Look on Vanguard during business hours and see the spreads. I think the "normal" big guy order i...
by Doc
Sat Aug 27, 2016 9:13 am
Forum: Investing - Theory, News & General
Topic: TIPS - Did you give up?
Replies: 291
Views: 32051

Re: TIPS - Did you give up?

If we can accept the premise that the market is thus forecasting 1.31% inflation, the expected real return of TBM is .57%. That is not the generally accepted premise in forecasting inflation. The difference between the real yield on TIPS and the yield on nominal notes of the same term is often refe...
by Doc
Sat Aug 27, 2016 8:43 am
Forum: Investing - Theory, News & General
Topic: TIPS - Did you give up?
Replies: 291
Views: 32051

Re: TIPS - Did you give up?

Regarding historical yields and "expensive": Well, that hardly seems fair. Nominal bond yields are super low compared to historical nominal yields, too. Inflation is historically low, and historically stubborn in its resistance to monetary policy changes. The Great Recession was historical...
by Doc
Sat Aug 27, 2016 8:32 am
Forum: Investing - Theory, News & General
Topic: TIPS - Did you give up?
Replies: 291
Views: 32051

Re: TIPS - Did you give up?

Good point, but in my case the ladder will be in tIRA and/or Roth, which provides another advantage (although I didn't mention it because it is not specific to TIPS), and that is 100% asset protection in my state . In a tIRA your entire distribution is taxable at the federal level. As far as I know...
by Doc
Fri Aug 26, 2016 4:30 pm
Forum: Investing - Theory, News & General
Topic: TIPS - Did you give up?
Replies: 291
Views: 32051

Re: TIPS - Did you give up?

Good point, but in my case the ladder will be in tIRA and/or Roth, which provides another advantage (although I didn't mention it because it is not specific to TIPS), and that is 100% asset protection in my state . In a tIRA your entire distribution is taxable at the federal level. As far as I know...
by Doc
Fri Aug 26, 2016 6:17 am
Forum: Investing - Theory, News & General
Topic: TIPS - Did you give up?
Replies: 291
Views: 32051

Re: TIPS - Did you give up?

I think of a TIPS ladder (bought at auction, held to maturity) as the ultimate annuity. Zero expenses. Zero default risk. 100% inflation protected. 100% certainty of future buying power (both amount and timing). 100% transparency. 100% control. 100% flexibility to cash out at any time without penal...
by Doc
Thu Aug 25, 2016 3:51 pm
Forum: Investing - Theory, News & General
Topic: TIPS - Did you give up?
Replies: 291
Views: 32051

Re: TIPS - Did you give up?

I think of a TIPS ladder (bought at auction, held to maturity) as the ultimate annuity. Zero expenses. Zero default risk. 100% inflation protected. 100% certainty of future buying power (both amount and timing). 100% transparency. 100% control. 100% flexibility to cash out at any time without penal...
by Doc
Thu Aug 25, 2016 7:57 am
Forum: Investing - Theory, News & General
Topic: New sector classification for REITs
Replies: 15
Views: 1281

Re: New sector classification for REITs

You're assuming the total market funds already hold real estate investment trusts proportional to their market share. Is this a valid assumption??? Yes, that is correct. REITs are part of most total market indices. If an index/fund did happen to exclude REITs before, it would still do so after the ...
by Doc
Wed Aug 24, 2016 8:06 am
Forum: Investing - Theory, News & General
Topic: TIPS - Did you give up?
Replies: 291
Views: 32051

Re: TIPS - Did you give up?

They have no credit or inflation risk . They're pure term risk, admittedly maybe with some liquidity risk too, although the 2008 problem arguably was idiosyncratic to the Lehman failure . Larry Swedroe our in house bond expert, makes a very good argument that the poor TIPS performance during the Le...
by Doc
Tue Aug 23, 2016 5:04 pm
Forum: Investing - Theory, News & General
Topic: Diversification
Replies: 8
Views: 732

Re: Diversification

The correlation between U.S. stocks and international stocks, from 1972 to 2015, according to Portfolio Visualizer (which accords well with other sources), has been 0.66. Nisiprius, some more info please. I am not familiar with portfolio visualizer. What is international? Total world, total world e...
by Doc
Tue Aug 23, 2016 8:01 am
Forum: Investing - Theory, News & General
Topic: Vanguard Customer Service Issues
Replies: 102
Views: 8473

Re: Vanguard Customer Service Issues

ALERT

We received an email notification sometime last night confirming an asset transfer to Vanguard from another broker. There is no transfer current request. Vanguard is saying that it was a glitch. The transfer request date was over two years ago.

Be aware.
by Doc
Mon Aug 22, 2016 10:12 am
Forum: Investing - Theory, News & General
Topic: Bonds in Taxable
Replies: 146
Views: 8258

Re: Bonds in Taxable

Re: In between In the 25% bracket I use the following "in between" rankings for tax efficiency Short Treasuries > Intermediate Treasuries ~ Short Corps > Intermediate Corp ~ LC Blend > Small Value ~ REITS There's about 20 to 30 bps differences between the groupings. If you are in a high st...
by Doc
Sun Aug 21, 2016 7:03 pm
Forum: Investing - Theory, News & General
Topic: Vanguard seeks SEC relief for US active ETFs:
Replies: 12
Views: 1128

Re: Vanguard seeks SEC relief for US active ETFs:

I just wish Vanguard's urge to gather assets matched its capacity to deliver first-rate service. Lev Their service is excellent for those who hold ETFs at other brokerage houses. The gathering of assets drives down expense ratios. Poor staff training and high staff turnover also drive down expense ...
by Doc
Sun Aug 21, 2016 6:06 pm
Forum: Investing - Theory, News & General
Topic: Vanguard seeks SEC relief for US active ETFs:
Replies: 12
Views: 1128

Re: Vanguard seeks SEC relief for US active ETFs:

I just wish Vanguard's urge to gather assets matched its capacity to deliver first-rate service. Lev Their service is excellent for those who hold ETFs at other brokerage houses. The gathering of assets drives down expense ratios. Poor staff training and high staff turnover also drive down expense ...
by Doc
Sat Aug 20, 2016 6:00 pm
Forum: Investing - Theory, News & General
Topic: When will a brokerage cancel buy orders?
Replies: 13
Views: 988

Re: When will a brokerage cancel buy orders?

boglerocks wrote:I deposited $39k into the account maybe 6-9 months ago and now I would have almost $60k in there as far as total value if I hadn't pulled $9k out recently to pay off my credit cards. So far so good.

Been there. Done that. Made large $'s. Fifty years ago. Now old & retired. No way now. :)
by Doc
Sat Aug 20, 2016 2:41 pm
Forum: Investing - Theory, News & General
Topic: Bonds in Taxable
Replies: 146
Views: 8258

Re: Bonds in Taxable

Putting tIRA/401k on the same basis as Roth in what sense? Kitces distinguishes two types. Which of the two? adjusting asset allocation based on after-tax Principal or adjusting asset allocation based on tax treatment of growth/gain? I enjoy trying to understand the math and concepts behind it, mor...
by Doc
Sat Aug 20, 2016 11:31 am
Forum: Investing - Theory, News & General
Topic: Bonds in Taxable
Replies: 146
Views: 8258

Re: Bonds in Taxable

For instance, I am trying to figure out the tax drag in taxable being the same as IRA kind of concepts just for intellectual curiosity. Also when it comes to tax adjustable allocation, taxable/brokerage accounts seems fairly tricky. There still doesn't seems to be a consensus on how to treat it. Yo...
by Doc
Sat Aug 20, 2016 11:09 am
Forum: Investing - Theory, News & General
Topic: Bonds in Taxable
Replies: 146
Views: 8258

Re: Bonds in Taxable

It sounds like the tax drag in a taxable account can quickly go out of control. He is using portfolio turnover, why are the calculations here not including turnover? They are. The turnover is implicit in the time frame and effective tax rate for the investment that several of us have discussed. But...
by Doc
Sat Aug 20, 2016 10:17 am
Forum: Investing - Theory, News & General
Topic: Vanguard Brokerage cost basis problems
Replies: 10
Views: 799

Re: Vanguard Brokerage cost basis problems

Well that is the question regarding what will the IRS do with non matching reported basis. If I had any confidence that Vanguard was going to actually fix this at some point, I would do as you say because eventually I would get a corrected 1099B. However, after having 7 months to fix a small proble...
by Doc
Sat Aug 20, 2016 10:04 am
Forum: Investing - Theory, News & General
Topic: Bonds in Taxable
Replies: 146
Views: 8258

Re: Bonds in Taxable

In response to Patrick
Doc wrote: Patrick, listen to Kevin.


gilgamesh, listen to David. :D
by Doc
Sat Aug 20, 2016 10:01 am
Forum: Investing - Theory, News & General
Topic: Bonds in Taxable
Replies: 146
Views: 8258

Re: Bonds in Taxable

Over a long time period, the compounding of dividend taxes makes the tax cost over 20%, which means that taxable and tax-deferred stocks lose about the same fraction of gains to taxes. I finally decided to try and work this out for myself. David, please tell me if I'm on the right track if you can ...
by Doc
Thu Aug 18, 2016 4:25 pm
Forum: Investing - Theory, News & General
Topic: Bonds in Taxable
Replies: 146
Views: 8258

Re: Bonds in Taxable

In response to Patrick Did you read the Wiki article I linked to? Do you understand that a nominally 50/50 portfolio is not actually 50/50 if split between a Roth and traditional IRA. Or conversely, per the Wiki example, that a portfolio that is nominally 57/43 or 43/57, depending on location of sto...
by Doc
Thu Aug 18, 2016 4:17 pm
Forum: Investing - Theory, News & General
Topic: Bonds in Taxable
Replies: 146
Views: 8258

Re: Bonds in Taxable

If I put $10,000/yr. into a 401k or IRA for 30 years expecting 8% return every year, no taxes paid yet, that account will be over $1.1 million dollars for retirement. I f I used a ROTH IRA the total account would be withdrawn tax-free Patrick, not sure what your point is, but your example doesn't a...
by Doc
Thu Aug 18, 2016 11:28 am
Forum: Investing - Theory, News & General
Topic: Second Guessing Having A % In Short Bonds in Retirement
Replies: 21
Views: 1327

Re: Second Guessing Having A % In Short Bonds in Retirement

More details...... Bonds, percentages of total portfolio, rounded........ 26% Direct CD's 21% FIBAX- Fidelity IT TR Index 9% FSITX - Fidelity Total bond Index 7% BSV ... I Just don't see the need for ST bonds. But maybe I can't see the forest for the trees! You already have short term fixed income ...
by Doc
Thu Aug 18, 2016 9:49 am
Forum: Investing - Theory, News & General
Topic: Second Guessing Having A % In Short Bonds in Retirement
Replies: 21
Views: 1327

Re: Second Guessing Having A % In Short Bonds in Retirement

And if you use a ST Corporate fund instead to juice the yield, then when the next correction comes along, with its higher credit risk, its more likely to take more of an "equity like" hit, when presumably you'd enjoy a flight to safety premium using a IT treasury fund. What does your over...
by Doc
Thu Aug 18, 2016 9:04 am
Forum: Investing - Theory, News & General
Topic: VG Prime MM Act vs. Quicken
Replies: 6
Views: 547

Re: VG Prime MM Act vs. Quicken

Reinvested dividends downloaded from Vanguard don't post correctly on Quicken. You need to change the action from "Div" to "ReinvDiv". As noted in my first post, VG does d/l them as "ReinvDiv", but the Transaction log on site keeps them as "DIV" I don't know ...
by Doc
Wed Aug 17, 2016 6:35 pm
Forum: Investing - Help with Personal Investments
Topic: Real-life, real-time wash sale & TLH documented
Replies: 122
Views: 11692

Re: Real-life, real-time wash sale & TLH documented

livesoft wrote:
In other words, I think one can use their noodle very easily to avoid wash sales. They are not to be feared.

But they are a real PITA if your broker doesn't handle them correctly. Schwab does.
by Doc
Wed Aug 17, 2016 6:28 pm
Forum: Investing - Theory, News & General
Topic: Bonds in Taxable
Replies: 146
Views: 8258

Re: Bonds in Taxable

What's wrong with this analysis I have $100k in taxable and $100k in tax deferred. Preferred asset allocation 50:50 stock:bond. Stocks 6% return and bonds 3% return. Invest for 12 years (6% growth doubles in 12 years) Option 1: invest bonds in taxable. So, starting balance $100k in tax deferred all...
by Doc
Wed Aug 17, 2016 4:30 pm
Forum: Investing - Theory, News & General
Topic: VG Prime MM Act vs. Quicken
Replies: 6
Views: 547

Re: VG Prime MM Act vs. Quicken

Reinvested dividends downloaded from Vanguard don't post correctly on Quicken. You need to change the action from "Div" to "ReinvDiv". I think this problem started with the new brokerage platform. If you were not looking at a money market fund you would have noticed the problem l...
by Doc
Wed Aug 17, 2016 4:16 pm
Forum: Investing - Theory, News & General
Topic: Bonds in Taxable
Replies: 146
Views: 8258

Re: Bonds in Taxable

If I do a bunch of calculations and reading, I'm sure I can get to the bottom of it on my own, but if someone can explain it, it'd be easier. Your problem is that you are stuck with the terms "tax-deferred" and "tax free". When I withdraw funds from a taxable account, bond gains...
by Doc
Wed Aug 17, 2016 2:37 pm
Forum: Investing - Theory, News & General
Topic: Vanguard Dividend Growth just closed (effective *now*)
Replies: 62
Views: 6101

Re: Vanguard Dividend Growth just closed (effective *now*)

At Schwab, we were able to move a closed fund (not Vanguard, and not Schwab, either) "in kind" from an IRA to a taxable account. We just paid the tax from a different pot. I was able to buy (not transfer) a closed except to new investors non-Schwab fund in a ROTH because I already owned t...
by Doc
Wed Aug 17, 2016 2:26 pm
Forum: Investing - Theory, News & General
Topic: Vanguard Customer Service Issues
Replies: 102
Views: 8473

Re: Vanguard Customer Service Issues

Bogleheads: My September 2016 issue of Consumer Reports rates Vanguard "Best" (out of 67 mutual fund companies) in a combination of things which included "Customer Service." Best wishes. Taylor I think we need to make a distinction between mutual fund companies and brokers . I r...
by Doc
Wed Aug 17, 2016 9:54 am
Forum: Investing - Theory, News & General
Topic: International Dividend Funds
Replies: 14
Views: 1288

Re: International Dividend Funds

I'm looking for something that provides international diversification but with less risk and hopefully zigs when other stocks zag. Also, with international stocks you get the currency risk riding on top unless you hedge that. But the currency risk cuts both ways and therefore may give you the zig t...
by Doc
Wed Aug 17, 2016 8:51 am
Forum: Investing - Theory, News & General
Topic: Why are bonds taxed more than stocks?
Replies: 29
Views: 3407

Re: Why are bonds taxed more than stocks?

But that just begs the question: why should income from capital gains (and dividends) be taxed less than income from labor? They are not taxed less . Once you add the tax the corporation has already paid on its profit to the tax the individual pays on the distribution/sale of those profits the comb...
by Doc
Wed Aug 17, 2016 8:09 am
Forum: Investing - Theory, News & General
Topic: Bond fund liquidity (VFICX, VBIIX, BIV, or VICSX)
Replies: 2
Views: 355

Re: Bond fund liquidity (VFICX, VBIIX, BIV, or VICSX)

Bogle's suggested having some corporate bonds , what's the current opinion on bond fund liquidity in a crisis . I'm considering total bond market index + intermediate-term corporate index, but could the corporate index be forced to sell illiquid holdings for cheap, whereas VBIIX (with more treasuri...
by Doc
Tue Aug 16, 2016 12:56 pm
Forum: Investing - Theory, News & General
Topic: investment and allocation - before or after tax?
Replies: 4
Views: 270

Re: investment and allocation - before or after tax?

I'm still not sure what my taxes will be in retirement (and even if I knew based upon today's tax rates they will likely change) but have made a best guess to account for taxes in tax-deferred accounts. We hear that a lot most often followed by "so I don't bother" but consider : 1) Maybe ...
by Doc
Tue Aug 16, 2016 12:44 pm
Forum: Investing - Theory, News & General
Topic: Vanguard upgrading to Brokerage account comes with some nuisances
Replies: 67
Views: 7055

Re: Vanguard upgrading to Brokerage account comes with some nuisances

In another thread someone mentioned long wait times with the new account upgrades. In response to that Since Vanguard does not answer the phone on the weekends, I suspect Monday is a big phone day for them. While I call them about once every 20 years years, I would think twice before calling them at...
by Doc
Mon Aug 15, 2016 4:35 pm
Forum: Investing - Theory, News & General
Topic: Positive Aspect Of Currency Risk?
Replies: 16
Views: 844

Re: Positive Aspect Of Currency Risk?

Currency risk is way beyond my knowledge level, but heck I'm not going to let that stop me from commenting. Currency risk can go both ways, and if you expose yourself to it you are probably exposing yourself to additional diversification benefit, assuming you rebalance. In the long run currency eff...
by Doc
Sun Aug 14, 2016 11:54 am
Forum: Investing - Theory, News & General
Topic: Bonds in Taxable
Replies: 146
Views: 8258

Re: Bonds in Taxable

Simple!.... Obviously I am missing something. Yes. When you are choosing which assets to put in taxable instead of what to put in any tax-advantaged account the type of tax-advantaged account or your ordinary tax rate in the future do not matter. The only thing that matters is how much you pay in t...
by Doc
Sun Aug 14, 2016 10:39 am
Forum: Investing - Theory, News & General
Topic: Bonds in Taxable
Replies: 146
Views: 8258

Re: Bonds in Taxable

OK, forget about charitable giving. Are you saying that LTCG in taxable are taxed at the same rate as tax-deferred withdrawals and Roth conversions? (OK, I know you are not, but these tax rates matter.) Of course not. The tax rate on tax-deferred withdrawals is not even relevant to this discussion....

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