Search found 1703 matches

by Electron
Sun Apr 22, 2018 5:02 pm
Forum: Investing - Theory, News & General
Topic: Wellesley January Price Drop? Why?
Replies: 27
Views: 3226

Re: Wellesley January Price Drop? Why?

I think this is an excellent example of why the Morningstar Star ratings are such a bad way to select funds. Look how broad that category is: 30-50% equity. No distinction between total market vs size tilts, no distinction between growth oriented and value oriented, no distinction between US and In...
by Electron
Fri Apr 20, 2018 9:40 pm
Forum: Investing - Help with Personal Investments
Topic: Divs and Cap Gains are killing me
Replies: 123
Views: 13056

Re: Divs and Cap Gains are killing me

--STCG from internal fund operation are reported on 1099DIV box 2a. The box 2a (STCG) total flows to Sch D line 13 (for me last year), or the QDI & CG Tax Worksheet line 3 (for me this year). Box 2a on the 1099-DIV reports Long Term Capital Gains distributions which will be taxed at capital gains t...
by Electron
Thu Apr 19, 2018 1:54 pm
Forum: Investing - Theory, News & General
Topic: Wellesley January Price Drop? Why?
Replies: 27
Views: 3226

Re: Wellesley January Price Drop? Why?

To see it doing so poorly relative to it's category so far this year is...disheartening...and I do wonder if it has something to do with the management changes in 2017. It looks like the portfolio manager on the equity side has been with the fund for over ten years. Two credit specialists were prom...
by Electron
Sat Apr 14, 2018 1:55 pm
Forum: Investing - Help with Personal Investments
Topic: Divs and Cap Gains are killing me
Replies: 123
Views: 13056

Re: Divs and Cap Gains are killing me

Thanks all - Guess I will, over the next coming years, since the Trailing Returns seem to match the S&P anyway, migrate some of my higher CG generating mutual funds into my Vanguard index stock funds. That sounds like a good approach. I did the same thing with a number of high turnover funds and wr...
by Electron
Fri Apr 13, 2018 3:56 pm
Forum: Investing - Help with Personal Investments
Topic: Divs and Cap Gains are killing me
Replies: 123
Views: 13056

Re: Divs and Cap Gains are killing me

I just looked up my Cost Basis vs Mkt Value for the biggest ones... which I have held for a very long time - Not too bad overall. Make sure that the cost basis calculations include all reinvestments. You may want to do some tax planning. If your income exceeds a certain threshold you could be impac...
by Electron
Fri Apr 13, 2018 2:17 pm
Forum: Investing - Help with Personal Investments
Topic: Divs and Cap Gains are killing me
Replies: 123
Views: 13056

Re: Divs and Cap Gains are killing me

Wonder if selling the funds, and buying their ETF twins would reduce/eliminate the CG in my taxable portfolio. Comparable ETFs may not be available for all the funds listed. I would suggest moving over time to only stock index funds which should eliminate the capital gains distributions in most cas...
by Electron
Fri Apr 06, 2018 1:28 pm
Forum: Investing - Help with Personal Investments
Topic: Any limit on IRA to ROTH in 60 day rules ?
Replies: 2
Views: 207

Re: Any limit on IRA to ROTH in 60 day rules ?

Here are the rules as posted by the IRS:

https://www.irs.gov/retirement-plans/ir ... -year-rule

If you are talking about Roth Conversions from Traditional IRA to Roth IRA, there are no limitations.
by Electron
Thu Mar 29, 2018 2:35 pm
Forum: Investing - Help with Personal Investments
Topic: Receive dividends from Index funds?
Replies: 23
Views: 1893

Re: Receive dividends from Index funds?

Taking the dividends from a taxable account is fine as there is no additional tax impact. Another option might be selling any shares you hold that are at a capital loss. See the article referenced below on Tax Loss Harvesting. Also review the section on Wash Sales. https://www.bogleheads.org/wiki/Ta...
by Electron
Mon Mar 19, 2018 10:48 pm
Forum: Investing - Help with Personal Investments
Topic: ETFs that Mimic VG Wellesley's & VG Wellington's Equity Investments
Replies: 19
Views: 2442

Re: ETFs that Mimic VG Wellesley's & VG Wellington's Equity Investments

You might also explore the Dividend ETF offerings from WisdomTree.

https://www.wisdomtree.com/-/media/us-m ... .pdf?la=en

As already mentioned, Wellesley and Wellington are actively managed funds while most ETFs track an index.
by Electron
Thu Mar 15, 2018 5:36 pm
Forum: Investing - Theory, News & General
Topic: Is the investment-grade vs. junk bonds divide arbitrary?
Replies: 16
Views: 1679

Re: Is the investment-grade vs. junk bonds divide arbitrary?

Is there any academic support for the dividing line between investment grade and junk being set where it is? Wikipedia has an excellent summary on Bond Credit Ratings with a lot of detailed information. The dividing line that you mention is between Lower Medium Grade and Non-Investment Grade Specul...
by Electron
Thu Mar 15, 2018 2:22 pm
Forum: Investing - Theory, News & General
Topic: Is the investment-grade vs. junk bonds divide arbitrary?
Replies: 16
Views: 1679

Re: Is the investment-grade vs. junk bonds divide arbitrary?

I think it's quite possible that (say) only AA bonds are safe enough to fulfill the bond role. Or on the other hand, it might be that even B- grade bonds would provide enough safety while enhancing return. The answer may be different for a long term investor versus someone with a shorter term time ...
by Electron
Thu Mar 01, 2018 2:55 pm
Forum: Personal Finance (Not Investing)
Topic: Tax question: Foreign Tax Credit
Replies: 33
Views: 2948

Re: Tax question: Foreign Tax Credit

Another difficulty with Form 1116 is the section on Deductions and Losses in Part I. As seen in this forum, individuals don't always agree on the specific calculations even after studying the Instructions and Publication 514 in detail. The different Tax Software programs also handle some of the dedu...
by Electron
Thu Mar 01, 2018 12:33 am
Forum: Personal Finance (Not Investing)
Topic: Tax question: Foreign Tax Credit
Replies: 33
Views: 2948

Re: Tax question: Foreign Tax Credit

The IRS stores tax returns for 7 years, and they store the form 1116 carryover amounts in your Individual Master File. They can check your calculations if they need to. Thanks for all the information on the different points. I didn't know about the Individual Master File at the IRS or the seven yea...
by Electron
Wed Feb 28, 2018 11:24 pm
Forum: Investing - Theory, News & General
Topic: Vanguard Short-Term Investment Grade Bond Fund - Gamesmanship???
Replies: 27
Views: 2083

Re: Vanguard Short-Term Investment Grade Bond Fund - Gamesmanship???

Another interesting discussion related to this fund is the use of derivatives. The monthly dividends vary more than you might expect even after adjusting for the number of days in the month. I believe that derivatives are a factor. One example was September 2016 when the dividend declined 28% from t...
by Electron
Wed Feb 28, 2018 10:47 pm
Forum: Personal Finance (Not Investing)
Topic: Tax question: Foreign Tax Credit
Replies: 33
Views: 2948

Re: Tax question: Foreign Tax Credit

Andy - Thanks for the interesting history on your experience with the Foreign Tax Credit. It sounds as though Price Waterhouse did a first-rate job on your tax return. nalor511 - I think the reason that Form 1116 does not calculate a carryforward is that there are several different carryforward amou...
by Electron
Wed Feb 28, 2018 3:14 pm
Forum: Personal Finance (Not Investing)
Topic: Tax question: Foreign Tax Credit
Replies: 33
Views: 2948

Re: Tax question: Foreign Tax Credit

The thing I don't get about form 1116 is, if you paid (for example) $200 in foreign tax, but due to the ratio/calculation you can only take $100 in credit this year, why isn't there a line listing the amount that gets carried forward to next year? Form 8801 for the AMT credit has a line for carryfo...
by Electron
Tue Feb 27, 2018 3:09 pm
Forum: Personal Finance (Not Investing)
Topic: Paying estimated taxes for MRD
Replies: 8
Views: 703

Re: Paying estimated taxes for MRD

I would also calculate the Safe Harbor amount based on last year's tax return. That amount would be paid in four equal quarterly installments. See Form 1040-ES or Form 2210 for the required payment. Form 2210 also allows unequal payments throughout the year using the Annualized Income Installment Me...
by Electron
Tue Feb 27, 2018 1:39 pm
Forum: Personal Finance (Not Investing)
Topic: Tax question: Foreign Tax Credit
Replies: 33
Views: 2948

Re: Tax question: Foreign Tax Credit

Form 1116 Line 10 is labeled "Carryback or Carryover (attach detailed computation)". That seems to imply that the attached computation would take priority over any information provided in previous filings of Form 1116. It seems unlikely that the IRS would store that information for future use. It's ...
by Electron
Mon Feb 26, 2018 5:46 pm
Forum: Personal Finance (Not Investing)
Topic: Tax question: Foreign Tax Credit
Replies: 33
Views: 2948

Re: Tax question: Foreign Tax Credit

I think the question is answered in Publication 514. See Example 2 on Page 23. Year Limit Paid Unused foreign tax (+) or excess limit (-) 2012 $600 $800 +200 2013 $600 $700 +100 2014 $500 $700 +200 2015 $550 $400 −150 2016 $800 $700 −100 2017 $500 $550 + 50 "You cannot carry the $200 of unused forei...
by Electron
Sun Feb 18, 2018 4:47 pm
Forum: Investing - Help with Personal Investments
Topic: Why not tax-exempt bonds?
Replies: 23
Views: 2570

Re: Why not tax-exempt bonds?

In addition to evaluating the after-tax return for both cases, you may want to consider any secondary effects. Social Security taxation can be impacted by both taxable and tax-exempt income, but note that the tax-exempt income may be less. Tax-exempt income can also impact Medicare Premium Surcharge...
by Electron
Sat Feb 17, 2018 12:35 am
Forum: Investing - Help with Personal Investments
Topic: High earners need help with IRAs
Replies: 9
Views: 1253

Re: High earners need help with IRAs

After contributing to company plans, you may want to consider the Backdoor Roth, the Non-Deductible IRA, and Taxable Accounts. The Non-Deductible IRA is generally considered the least attractive of the various IRA choices. Keep in mind that tax rates may change in the future and there may be a benef...
by Electron
Mon Feb 12, 2018 6:25 pm
Forum: Personal Finance (Not Investing)
Topic: 2018 taxes and AMT
Replies: 13
Views: 1685

Re: 2018 taxes and AMT

Even though AMT excludes a number of deductions, all may not be lost. It is possible for the additional tax under AMT to be only $1.00. The reason for this is that the AMT Exemption varies over a wide range. As a result, the total income taxed under AMT may be higher, but the AMT Exemption may be hi...
by Electron
Sun Feb 11, 2018 5:20 pm
Forum: Investing - Theory, News & General
Topic: Vanguard High Yield Corporate - Another New Low in Dividend
Replies: 8
Views: 2052

Re: Vanguard High Yield Corporate - Another New Low in Dividend

The 0.3% difference in annualized 10-year return between my 7.2% projected and 6.9% actual was the roll-down in return on income reinvestment over the past five years as interest rates fell. It was not due to greater defaults. Going forward, we may see that reverse as rates rise. Hence, a fair proj...
by Electron
Sun Feb 11, 2018 2:59 pm
Forum: Investing - Help with Personal Investments
Topic: Wellesley Income performance
Replies: 16
Views: 2255

Re: Wellesley Income performance

Dividend stocks have been in great demand in recent years with the low interest rates, and this has undoubtedly had an impact on Wellesley Income. If you look at the top portfolio holdings, you will see quite a few mature growth companies with a dividend yield in the area of 2% or higher. Depending ...
by Electron
Sat Feb 10, 2018 4:38 pm
Forum: Investing - Help with Personal Investments
Topic: Wellesley Income performance
Replies: 16
Views: 2255

Re: Wellesley Income performance

The bond duration is certainly one factor. Another factor may be the current stock holdings. https://personal.vanguard.com/us/funds/snapshot?FundId=0527&FundIntExt=INT&funds_disable_redirect=true#tab=2 Scroll down the page for the list of the top ten holdings. Wellesley appears to be holding stocks ...
by Electron
Fri Feb 09, 2018 1:47 pm
Forum: Investing - Theory, News & General
Topic: Vanguard High Yield Corporate - Another New Low in Dividend
Replies: 8
Views: 2052

Re: Vanguard High Yield Corporate - Another New Low in Dividend

The new low in the dividend may be an anomaly of some sort. I just checked the accrued dividend in my account which reflects eight days, and a dividend projected to 31 days exceeds both the January and December dividends by a significant amount. This could fit in with my thoughts that derivatives mi...
by Electron
Wed Feb 07, 2018 3:38 pm
Forum: Investing - Theory, News & General
Topic: Vanguard High Yield Corporate - Another New Low in Dividend
Replies: 8
Views: 2052

Re: Vanguard High Yield Corporate - Another New Low in Dividend

Thanks FactualFran and alex_686 for the additional comments. I'd forgotten that Vanguard Fixed Income funds paid fixed monthly dividends at one time. The very low credit spread on BAA bonds is a surprise to me as well. I should note that Vanguard High Yield Corporate has seen the NAV decline signifi...
by Electron
Tue Feb 06, 2018 2:37 pm
Forum: Personal Finance (Not Investing)
Topic: Stats on When People Take Social Security
Replies: 197
Views: 14661

Re: Stats on When People Take Social Security

I also waited until age 70 and believe it was the right decision for me. One factor is the fact that expenditures are often quite a bit higher later in retirement. Note also that inflation adjustments would be applied to a larger amount. Taking Social Security early and investing could do well but i...
by Electron
Tue Feb 06, 2018 1:31 pm
Forum: Investing - Theory, News & General
Topic: Why GNMAs Shouldn't Be Your Bond Choice
Replies: 70
Views: 5198

Re: Why GNMAs Shouldn't Be Your Bond Choice

Guys this comparison is cyclical. If you use growth charts or 15, 10, 5, 3, 1 periods you will miss the wiggles. You need to look at rolling return charts so you can see the trees in the forest. See the two year rolling return chart for the last ~25 years that I posted earlier. To make sure that we...
by Electron
Mon Feb 05, 2018 5:19 pm
Forum: Investing - Theory, News & General
Topic: Vanguard High Yield Corporate - Another New Low in Dividend
Replies: 8
Views: 2052

Re: Vanguard High Yield Corporate - Another New Low in Dividend

There are also maybe some temporary effects based on the exact underlying portfolio. Some fluctuations happen now and then and don't mean much. It's also possible the manager decided to derisk a bit. Thanks for your comments. I had the same feeling about the fund possibly lowering risk recently. Va...
by Electron
Mon Feb 05, 2018 3:47 pm
Forum: Investing - Theory, News & General
Topic: Why GNMAs Shouldn't Be Your Bond Choice
Replies: 70
Views: 5198

Re: Why GNMAs Shouldn't Be Your Bond Choice

Despite Larry Swedroe's expertise and all of his explanations of the potential risks in GNMAs, they've always sounded like, at worst, "risk of slight underperformance," ego risk rather than serious financial risk. Whenever I stare at the growth charts I sure don't see any place in thirty-seven year...
by Electron
Mon Feb 05, 2018 2:30 pm
Forum: Investing - Theory, News & General
Topic: Vanguard High Yield Corporate - Another New Low in Dividend
Replies: 8
Views: 2052

Vanguard High Yield Corporate - Another New Low in Dividend

Attached is a chart showing the dividend in dollars per share paid by Vanguard High Yield Corporate (VWEHX). The most recent dividend of $0.02224 per share represents a new low. The dividend appears to have been in a long term decline. The earliest dividend data I have shows the dividend at $0.084 i...
by Electron
Sat Dec 16, 2017 1:54 pm
Forum: Personal Consumer Issues
Topic: New Quad9 DNS Service Makes the Internet Safer and More Private
Replies: 18
Views: 2086

Re: New Quad9 DNS Service Makes the Internet Safer and More Private

Namebench is another DNS Benchmarking program that is worth running. The program was developed as a Google project. One nice feature is that the program provides Average, Minimum and Maximum response times in milliseconds for each server. The results are displayed in table form and chart form. Quad9...
by Electron
Wed Dec 13, 2017 3:21 pm
Forum: Personal Consumer Issues
Topic: New Quad9 DNS Service Makes the Internet Safer and More Private
Replies: 18
Views: 2086

Re: New Quad9 DNS Service Makes the Internet Safer and More Private

However, some third party DNS providers are fine - namely OpenDNS and Google Public DNS. They support the edns client subnet extension, which will allow the CDN to properly route you despite not using the ISP's resolver. Quad9 does not yet support it, so I would not use it if performance is a conce...
by Electron
Tue Dec 12, 2017 3:42 pm
Forum: Personal Consumer Issues
Topic: New Quad9 DNS Service Makes the Internet Safer and More Private
Replies: 18
Views: 2086

Re: New Quad9 DNS Service Makes the Internet Safer and More Private

I ran the GRC DNS Benchmark several times and the results varied quite a bit. The latest test shows Quad9 only a little slower than OpenDNS at my location. I also reviewed the video referenced earlier and Steve Gibson mentioned essentially zero performance penalty using Quad9. Since his testing was ...
by Electron
Mon Dec 11, 2017 6:10 pm
Forum: Personal Consumer Issues
Topic: New Quad9 DNS Service Makes the Internet Safer and More Private
Replies: 18
Views: 2086

Re: New Quad9 DNS Service Makes the Internet Safer and More Private

Thanks all for the comments. An Internet search on Quad9 and other terms provides all kinds of information including comparisons with OpenDNS and Google DNS. Here is an excellent video with detailed analysis by Steve Gibson of the well known Security Company Gibson Research. Listen to the last 10-20...
by Electron
Mon Dec 11, 2017 3:44 pm
Forum: Personal Consumer Issues
Topic: New Quad9 DNS Service Makes the Internet Safer and More Private
Replies: 18
Views: 2086

New Quad9 DNS Service Makes the Internet Safer and More Private

Has anyone tried the New Quad9 DNS Service? This sounds like an easy change that should enhance safety on the Internet. Any comments appreciated. https://quad9.net/ https://securityintelligence.com/new-quad9-dns-service-makes-the-internet-safer-and-more-private/ https://www.globalcyberalliance.org/i...
by Electron
Sat Dec 09, 2017 3:46 pm
Forum: Personal Finance (Not Investing)
Topic: AMT and taxable portion of state tax refund
Replies: 21
Views: 7656

Re: AMT and taxable portion of state tax refund

Take a look at Line 7 on IRS Form 6251. Line 7 is labeled "Tax refund from Form 1040, line 10 or line 21".

If you then look at the column where the data is entered, you will see parentheses (..) which indicates a negative number.
by Electron
Fri Dec 01, 2017 1:22 pm
Forum: Investing - Help with Personal Investments
Topic: Divs and Cap Gains are killing me
Replies: 123
Views: 13056

Re: Divs and Cap Gains are killing me

That was the initial reason to go with Wellesley - to have a fund that balances Bonds/Stocks - BUT it has 31% turnover The 31% turnover in Wellesley may not be a problem since the fund is 60% in bonds which typically don't generate a lot of capital gains. The bigger issue depending on your tax brac...
by Electron
Wed Nov 29, 2017 5:08 pm
Forum: Investing - Help with Personal Investments
Topic: Divs and Cap Gains are killing me
Replies: 123
Views: 13056

Re: Divs and Cap Gains are killing me

It's also helpful to review the current tax system especially in terms of the 15% bracket where Qualified Dividends and Capital Gains may be taxed at 0%. Take a look at recent tax returns and determine if you were able to take advantage of the 0% bracket. Note that ordinary income and short term gai...
by Electron
Wed Nov 29, 2017 1:50 pm
Forum: Investing - Help with Personal Investments
Topic: Divs and Cap Gains are killing me
Replies: 123
Views: 13056

Re: Divs and Cap Gains are killing me

Preliminary Capital Gains Distribution estimates are available from most fund groups. Here you can see the estimates for Vanguard Windsor, Wellesley and Wellington. As a percentage of NAV, they show 2.85%, 1.04%, and 3.79% respectively. https://investornews.vanguard/upcoming-capital-gains-informatio...
by Electron
Tue Nov 28, 2017 10:54 pm
Forum: Investing - Help with Personal Investments
Topic: Divs and Cap Gains are killing me
Replies: 123
Views: 13056

Re: Divs and Cap Gains are killing me

Dividends in a taxable account shouldn't be an issue as long as they are Qualified Dividends and are receiving favorable tax treatment. Note that the dividends paid by Wellesley Income are generated by both stocks and bonds and only a portion of the dividend is Qualified. Wellesley may be better sui...
by Electron
Tue Nov 28, 2017 2:19 pm
Forum: Investing - Help with Personal Investments
Topic: Divs and Cap Gains are killing me
Replies: 123
Views: 13056

Re: Divs and Cap Gains are killing me

Identify higher turnover actively managed funds in taxable accounts that make large distributions. Think about a plan to move those assets to more tax efficient funds in the future. I have done that with several mutual funds in the past and taken advantage of market declines when they present themse...
by Electron
Mon Nov 27, 2017 11:50 pm
Forum: Personal Consumer Issues
Topic: Non Stick frying pan
Replies: 73
Views: 6797

Re: Non Stick frying pan

I have a 6.5" Wagner Ware cast iron skillet that is great for eggs. Cleanup is just a few seconds using a paper towel. The key is to have a cast iron skillet with smooth polished cooking surface and not the rough surface seen on most cast iron skillets manufactured today. A trace of butter is all th...
by Electron
Sun Nov 26, 2017 6:30 pm
Forum: Personal Finance (Not Investing)
Topic: My Social Security Site not showing my future benefits
Replies: 11
Views: 1062

Re: My Social Security Site not showing my future benefits

I applied for retirement benefits recently and the site stopped showing my benefit projections for a period of time. That information reappeared a week or two ago and it now includes the 2% COLA effective in 2018.
by Electron
Mon Nov 20, 2017 11:26 pm
Forum: Personal Finance (Not Investing)
Topic: Medicare Part B premium unchanged for 2018
Replies: 52
Views: 4241

Re: Medicare Part B premium unchanged for 2018

Yes - my recollection as well. That Congressional action was, over time, "revenue neutral" and the tampdown of the large increase was to be paid for by some folks over a multi-year period. Where does the "revenue neutral" increase or income come from that allowed the tampdown? Are we all paying for...
by Electron
Mon Nov 20, 2017 3:03 pm
Forum: Personal Finance (Not Investing)
Topic: Medicare Part B premium unchanged for 2018
Replies: 52
Views: 4241

Re: Medicare Part B premium unchanged for 2018

This article from October 2016 mentions a one time loan of $7.5B to Medicare to reduce Part B premiums. http://time.com/money/4517168/2017-medicare-premiums-could-jump-20/ "A year ago, the absence of a 2016 COLA froze Part B premiums at $104.90 a month for those who were held harmless. The other gro...
by Electron
Tue Nov 07, 2017 6:40 pm
Forum: Investing - Theory, News & General
Topic: Vanguard GNMA Fund Versus Total Bond Market Index Fund
Replies: 19
Views: 3266

Re: Vanguard GNMA Fund Versus Total Bond Market Index Fund

Thanks all for the additional replies. not4me - You make an excellent point about duration. This forum often recommends that you limit the duration of a bond fund to when you may need the invested capital. Here is an excellent reference in the Wiki. See the section on Duration and Point of Indiffere...
by Electron
Sun Nov 05, 2017 1:51 pm
Forum: Investing - Theory, News & General
Topic: Vanguard GNMA Fund Versus Total Bond Market Index Fund
Replies: 19
Views: 3266

Re: Vanguard GNMA Fund Versus Total Bond Market Index Fund

The Vanguard GNMA fund (vfiix) has outperformed the Vanguard Total Bond Market index fund (vbmfx) with less volatility, measured over the full lifespan of the latter. Here is a Morningstar chart showing that comparison which goes back to 12-11-86. That time period represents nearly 31 years. http:/...