Search found 1517 matches

by Electron
Mon May 30, 2016 1:39 pm
Forum: Investing - Theory, News & General
Topic: Books on Options
Replies: 54
Views: 1854

Re: Books on Options

An alternative if you want to buy at lower prices is just use Good Until Canceled Limit Orders. Note that you can place multiple orders at different prices. In the meantime your Money Market fund will pay dividends and the yield may be headed higher. Vanguard Prime Money Market fund currently has an...
by Electron
Sun May 29, 2016 12:29 pm
Forum: Investing - Theory, News & General
Topic: Books on Options
Replies: 54
Views: 1854

Re: Books on Options

By selling puts with strike prices about 15% below the current price, I keep the option premium if SPY doesn't fall below the strike price and if SPY falls below the strike price I buy it at a much lower price. A put option 15% below current prices would be considered deep out-of-the-money and prem...
by Electron
Sat May 28, 2016 4:44 pm
Forum: Investing - Theory, News & General
Topic: Books on Options
Replies: 54
Views: 1854

Re: Books on Options

The Options Industry Council offers online options courses at no charge. The second link lists the available courses.

http://www.optionseducation.org/en.html

http://education.optionseducation.org/course/
by Electron
Fri May 27, 2016 1:50 pm
Forum: Investing - Help with Personal Investments
Topic: Monsanto-BayerAG
Replies: 19
Views: 1527

Re: Monsanto-BayerAG

Monsanto history I found the history of Monsanto quite interesting as well as the background on my particular shares. My father purchased 50 shares of Lion Oil Company in 1950. Monsanto Chemical Company bought Lion Oil in 1955 which included a chemical division. Each share of Lion Oil was exchanged...
by Electron
Wed May 25, 2016 3:07 pm
Forum: Investing - Help with Personal Investments
Topic: Monsanto-BayerAG
Replies: 19
Views: 1527

Re: Monsanto-BayerAG

Monsanto has quite an interesting history going back to 1901. The company today with symbol MON is actually the New Monsanto which was a spin-off from Pharmacia. https://en.wikipedia.org/wiki/Monsanto#Spin-offs_and_mergers Click on "Show" at the bottom right to see a detailed pictorial. Pr...
by Electron
Tue May 24, 2016 1:41 pm
Forum: Investing - Help with Personal Investments
Topic: Monsanto-BayerAG
Replies: 19
Views: 1527

Re: Monsanto-BayerAG

Monsanto shareholders with unrealized capital gains might have preferred Bayer stock rather than cash. Bayer ADRs (BAYRY) currently pay a higher dividend yield than Monsanto although foreign tax withholding would likely apply. Based on the current price of Monsanto shares, investors do seem skeptica...
by Electron
Thu May 19, 2016 1:08 pm
Forum: Investing - Theory, News & General
Topic: Bogle's Common Sense 5 fund portfolio
Replies: 13
Views: 2492

Re: Bogle's Common Sense 5 fund portfolio

The Five Fund Portfolio should be viewed in the context of Rule 7 as discussed in the book. The chapter is entitled "On Simplicity" and eight different rules are discussed. Rule 1 - Select Low Cost Funds Rule 2 - Consider Carefully the Added Costs of Advice Rule 3 - Do Not Overrate Past Fu...
by Electron
Wed May 18, 2016 1:59 pm
Forum: Investing - Theory, News & General
Topic: Bogle's Common Sense 5 fund portfolio
Replies: 13
Views: 2492

Re: Bogle's Common Sense 5 fund portfolio

EdLaFave wrote:Where in the book can I find him recommending that portfolio?

See page 103 in the first edition of the book.
by Electron
Tue May 17, 2016 2:42 pm
Forum: Investing - Theory, News & General
Topic: Riding the yield curve, in action
Replies: 80
Views: 13515

Re: Riding the yield curve, in action

Thanks ogd and patrick013 for the replies. I just wanted to confirm that the bullet portfolio strategy can result in additional distributed capital gains at times. The distributions were quite significant for the longer maturity fund. I agree that the tax accounting and other factors may impact the ...
by Electron
Sun May 15, 2016 4:47 pm
Forum: Investing - Theory, News & General
Topic: Riding the yield curve, in action
Replies: 80
Views: 13515

Re: Riding the yield curve, in action

I noticed that the Vanguard Intermediate and Long Term Treasury funds have both paid capital gains distributions in recent years. https://personal.vanguard.com/us/funds/snapshot?FundId=0583&FundIntExt=INT#tab=4 https://personal.vanguard.com/us/funds/snapshot?FundId=0535&FundIntExt=INT#tab=4 ...
by Electron
Tue May 03, 2016 3:27 pm
Forum: Personal Consumer Issues
Topic: Linux/Windows Boot Problem
Replies: 54
Views: 2908

Re: Linux/Windows Boot Problem

A 2 GB flash drive should work with or without persistence. One unknown is your BIOS and the limitations on the "USB Memory" choice. I'd also check on the capabilities of the Pendrive Linux Universal USB Installer. It may be designed to only work with the first partition on the flash drive...
by Electron
Tue May 03, 2016 1:20 pm
Forum: Personal Consumer Issues
Topic: Linux/Windows Boot Problem
Replies: 54
Views: 2908

Re: Linux/Windows Boot Problem

I've had quite a few Linux distributions installed on my 20 GB second disk. You need a root partition for each distribution. It is also necessary to have one swap partition on the disk. Later on you may also want a home partition for each distribution. As I recall many distros running live include g...
by Electron
Mon May 02, 2016 3:07 pm
Forum: Investing - Theory, News & General
Topic: Foreign Tax Credit, Form 1116, Double Taxation
Replies: 16
Views: 1270

Re: Foreign Tax Credit, Form 1116, Double Taxation

That seems to be exactly the way my international mutual funds (and ETFs) work: Vanguard FTSE-all-world ex-US pays a quarterly dividend and withholds the foreign taxes paid. The withholding results in a Foreign Tax Credit at the end of the year. Individual foreign stocks and international mutual fu...
by Electron
Mon May 02, 2016 2:53 pm
Forum: Investing - Theory, News & General
Topic: Foreign Tax Credit, Form 1116, Double Taxation
Replies: 16
Views: 1270

Re: Foreign Tax Credit, Form 1116, Double Taxation

Turbo Tax does a marvelous job of handling the foreign tax carryover. I'm sure TurboTax is easier than my method for FTC Carryback and Carryover. When I first looked into this I was surprised at all the rules. One thing that initially surprised me is that you have to use the current year's Foreign ...
by Electron
Sun May 01, 2016 4:22 pm
Forum: Investing - Help with Personal Investments
Topic: No tax advantaged accounts - all muni bonds?
Replies: 12
Views: 1218

Re: No tax advantaged accounts - all muni bonds?

You might review how Municipal Bonds performed in 2008-2009. Municipal Bonds can have liquidity problems in times of crisis. Here is a chart comparing Vanguard Intermediate Term Tax Exempt with Vanguard Intermediate Term Treasury. Note that Treasury bonds are tax exempt for any state income tax. htt...
by Electron
Sun May 01, 2016 1:48 pm
Forum: Investing - Theory, News & General
Topic: Foreign Tax Credit, Form 1116, Double Taxation
Replies: 16
Views: 1270

Re: Foreign Tax Credit, Form 1116, Double Taxation

Thanks all for the help. I agree with the comments on Effective Tax Rate and the 0% CG/QD bracket coming into play in my example. My initial post brought up the subject of whether the calculations on Form 1116 are very precise in terms of relieving any double tax burden. My example did not illustrat...
by Electron
Fri Apr 29, 2016 3:16 pm
Forum: Investing - Theory, News & General
Topic: Foreign Tax Credit, Form 1116, Double Taxation
Replies: 16
Views: 1270

Re: Foreign Tax Credit, Form 1116, Double Taxation

Thanks jjface and CyberBob for the replies. The calculations on Form 1116 are the key to the Foreign Tax Credit. Form 1116 appears to only look at the blended effective tax rate. That rate may be a combination of the separate tax rates on Ordinary Income and Capital Gains/Qualified Dividends. In add...
by Electron
Fri Apr 29, 2016 1:25 pm
Forum: Investing - Theory, News & General
Topic: Foreign Tax Credit, Form 1116, Double Taxation
Replies: 16
Views: 1270

Foreign Tax Credit, Form 1116, Double Taxation

IRS Publication 514 as shown below states that the foreign tax credit is intended to prevent double taxation. How precise are the calculations on Form 1116 in meeting that goal? Consider the following example. Taxpayer A: $100K Ordinary Income, Itemized Deductions and Personal Exemption, 25% margina...
by Electron
Thu Apr 28, 2016 11:43 pm
Forum: Personal Consumer Issues
Topic: Linux/Windows Boot Problem
Replies: 54
Views: 2908

Re: Linux/Windows Boot Problem

That did it! That did the trick. I used a 1 GB drive instead of a 16 GB drive and it worked! Congratulations on your success. That is great news. If a 2 GB Flash works you can try the Persistence feature. The Physical Address Extension (PAE) that was mentioned earlier is required to access memory g...
by Electron
Thu Apr 28, 2016 11:20 pm
Forum: Personal Consumer Issues
Topic: Linux/Windows Boot Problem
Replies: 54
Views: 2908

Re: Linux/Windows Boot Problem

I'd definitely try the WinXP system again with the other USB Flash drive removed. In regards to any BIOS update, I would avoid that unless you can determine that additional USB boot options were added. I think there is risk in updating a BIOS should anything go wrong. Does the system identify the ty...
by Electron
Thu Apr 28, 2016 12:52 pm
Forum: Personal Consumer Issues
Topic: Linux/Windows Boot Problem
Replies: 54
Views: 2908

Re: Linux/Windows Boot Problem

Attached below is the Universal USB Installer Log for my most recent installation. I have only used 1 GB and 2 GB Flash drives. I would recommend not using the Persistence feature initially. That feature allows you to store files and settings on the Flash Drive. I always verify the md5 checksum for ...
by Electron
Thu Apr 28, 2016 12:14 pm
Forum: Investing - Help with Personal Investments
Topic: if you HAD to pick 2 actively managed funds???
Replies: 45
Views: 3279

Re: if you HAD to pick 2 actively managed funds???

The funds selected might be different for taxable and tax sheltered accounts. Portfolio turnover and tax efficiency should be evaluated for investment in a taxable account. T. Rowe Price Blue Chip Growth (TRBCX) has performed very well over time. There are a few things to monitor when investing in a...
by Electron
Wed Apr 27, 2016 2:08 pm
Forum: Investing - Help with Personal Investments
Topic: if you HAD to pick 2 actively managed funds???
Replies: 45
Views: 3279

Re: if you HAD to pick 2 actively managed funds???

Review the available choices on Morningstar in terms of past performance, management, expenses, and portfolio strategy. Avoid any fund with a concentrated portfolio. You may have read about the problems at Sequoia Fund recently. The fund was not properly diversified and had a very large percentage o...
by Electron
Wed Apr 27, 2016 1:51 pm
Forum: Personal Consumer Issues
Topic: Linux/Windows Boot Problem
Replies: 54
Views: 2908

Re: Linux/Windows Boot Problem

The "USB Memory" choice in the BIOS may be the problem. The link I posted above states the following: "A BIOS that supports USB-HDD automatically detects the geometry of the USB Flash drive." If you do get the system working, a lot will depend on the processor and graphics suppor...
by Electron
Tue Apr 26, 2016 11:05 pm
Forum: Personal Consumer Issues
Topic: Linux/Windows Boot Problem
Replies: 54
Views: 2908

Re: Linux/Windows Boot Problem

Boot Menu 1. USB Memory 2. HDD 3. FDD 4. CD/DVD 5. LAN I enter BIOS setup by hitting the Delete key after Power On or Reset. The CMOS Setup Utility comes up and says 1984-2005 Award Software. To set my boot devices and order, I enter Advanced BIOS Features and then select First Boot Device. If I th...
by Electron
Tue Apr 26, 2016 4:28 pm
Forum: Personal Consumer Issues
Topic: Linux/Windows Boot Problem
Replies: 54
Views: 2908

Re: Linux/Windows Boot Problem

Check the USB boot options in your BIOS setup. My computer had options including USB-FDD, USB-ZIP, USB-CDROM, and USB-HDD.

Only USB-HDD and USB-ZIP worked with the Linux Flash Drives that I created.
by Electron
Tue Apr 26, 2016 3:37 pm
Forum: Personal Consumer Issues
Topic: Linux/Windows Boot Problem
Replies: 54
Views: 2908

Re: Linux/Windows Boot Problem

I've installed Linux many times using the Universal USB Installer available at the site below. http://www.pendrivelinux.com/ In my case I installed to a USB Flash Drive. The BIOS in the WinXP Computer was set to boot from USB HDD (hard drive) if memory serves me. The HDD option was off screen initia...
by Electron
Mon Apr 25, 2016 12:32 pm
Forum: Investing - Theory, News & General
Topic: Do you think this is a bad time to enter the market? With the dow at 18,000
Replies: 89
Views: 8027

Re: Do you think this is a bad time to enter the market? With the dow at 18,000

To me it is a legitimate question. Anybody that bought a large position in 2007 would probably agree. It is a reasonable question especially when you consider the 6+ year bull market from March 2009 through 2015. Intermediate term uptrends are typically shorter in duration. The gains over that peri...
by Electron
Sat Apr 23, 2016 4:23 pm
Forum: Investing - Theory, News & General
Topic: Do you think this is a bad time to enter the market? With the dow at 18,000
Replies: 89
Views: 8027

Re: Do you think this is a bad time to enter the market? With the dow at 18,000

I would identify any issues you have related to the Dow Industrials at 18,000. Perhaps you are concerned about equity valuations, the trend of interest rates, a possible economic slowdown or recession, trouble in the European Union, a bear market, or the always present short term risk in the market....
by Electron
Fri Apr 22, 2016 4:29 pm
Forum: Investing - Theory, News & General
Topic: Do you think this is a bad time to enter the market? With the dow at 18,000
Replies: 89
Views: 8027

Re: Do you think this is a bad time to enter the market? With the dow at 18,000

Take a look at the following charts for some perspective. http://www.stockcharts.com/freecharts/historical/fundamentals.html http://www.stockcharts.com/freecharts/historical/marketindexes.html It's interesting looking back at events such as the 1987 crash on the charts. The major bear markets are th...
by Electron
Mon Apr 18, 2016 2:21 pm
Forum: Investing - Theory, News & General
Topic: Tax form 1116 questions
Replies: 32
Views: 3884

Re: Tax form 1116 questions

I realized a mathematical reason why the payment of the previous year's state income tax needs to be prorated against that year's income, not the current year's income; there might not be any income to prorate. That analysis does make sense. However, the example in Publication 514 on page 16 seems ...
by Electron
Mon Apr 18, 2016 12:25 pm
Forum: Personal Finance (Not Investing)
Topic: Tax Planning for 2016
Replies: 8
Views: 1654

Re: Tax Planning for 2016

Here's an article worth reviewing even if your income puts you beyond AMT territory. The chart shows the AMT Bump Zones and the point where AMT ends. https://www.kitces.com/blog/evaluating-exposure-to-the-alternative-minimum-tax-and-strategies-to-reduce-the-amt-bite/ It looks like your marginal Fede...
by Electron
Wed Apr 13, 2016 12:25 pm
Forum: Personal Finance (Not Investing)
Topic: Backdoor Roth - Tax Question
Replies: 6
Views: 525

Re: Backdoor Roth - Tax Question

I'd also check the instructions for Form 1040 Line 15a. It looks like Exception 2 applies and the amount in Box 1 of Form 1099-R would go on Form 1040 Line 15a. This thread appears to be about a Roth Conversion and not an IRA Rollover unless a check was made out in your name. You should also be rece...
by Electron
Tue Apr 12, 2016 3:15 pm
Forum: Personal Finance (Not Investing)
Topic: Backdoor Roth - Tax Question
Replies: 6
Views: 525

Re: Backdoor Roth - Tax Question

If you didn't specify 2014 as the contribution year for the January IRA contribution, they would have defaulted to 2015. You might check your records.
by Electron
Mon Apr 11, 2016 2:43 pm
Forum: Personal Finance (Not Investing)
Topic: Should I convert a large IRA to a Roth IRA and incur large taxes
Replies: 86
Views: 7135

Re: Should I convert a large IRA to a Roth IRA and incur large taxes

I will never need funds from the IRA and have the cash to pay the taxes if I convert. One consideration is whether you would invest that cash and potentially change your asset allocation if you stay with the Traditional IRA. In general, if you have the cash to pay the conversion taxes, you want to ...
by Electron
Fri Apr 08, 2016 11:40 pm
Forum: Personal Finance (Not Investing)
Topic: Form 1116 Help
Replies: 9
Views: 775

Re: Form 1116 Help

I recently experimented with TaxACT 2015 and it handled the Form 1116 QDI Adjustments automatically when the Adjustment Exception no longer applied. In my case, I individually created several 1099-DIV Forms with separate forms for individual Foreign Stocks and another for an International Mutual Fun...
by Electron
Fri Apr 08, 2016 5:40 pm
Forum: Personal Finance (Not Investing)
Topic: Form 1116 Help
Replies: 9
Views: 775

Re: Form 1116 Help

I received a separate form from Vanguard labeled "2015 Foreign Tax Paid" and detailed instructions are provided on the back. The form shows Foreign Income and QDI Eligible Foreign Income in separate columns on the front. I did not see any words stating that the dividends paid by the fund a...
by Electron
Fri Apr 08, 2016 4:47 pm
Forum: Personal Finance (Not Investing)
Topic: Should I convert a large IRA to a Roth IRA and incur large taxes
Replies: 86
Views: 7135

Re: Should I convert a large IRA to a Roth IRA and incur large taxes

A factor mentioned less frequently is state income tax which could also change in the future. The impact could be even greater for a retiree that moves from one state to another. Imagine moving from Texas to California or vice versa. In one case you would want to do Roth conversions before moving, w...
by Electron
Thu Apr 07, 2016 6:16 pm
Forum: Personal Finance (Not Investing)
Topic: Should I convert a large IRA to a Roth IRA and incur large taxes
Replies: 86
Views: 7135

Re: Should I convert a large IRA to a Roth IRA and incur large taxes

Here are two excellent articles on the subject by Michael Kitces. "Using Systematic Partial Roth IRA Conversions And Recharacterizations To Fill The Lower Tax Bracket Buckets" https://www.kitces.com/blog/using-systematic-partial-roth-ira-conversions-and-recharacterizations-to-fill-the-lowe...
by Electron
Mon Apr 04, 2016 4:07 pm
Forum: Personal Finance (Not Investing)
Topic: Long Term Capital Gains and Qualified Dividend mutual funds?
Replies: 7
Views: 756

Re: Long Term Capital Gains and Qualified Dividend mutual funds?

In that VG link, I was surprised that 100% of STCG can be QDI........can someone explain how that can happen. I may have found an answer to that interesting question. It appears that long term capital losses are part of the equation. https://www.irs.gov/irb/2005-21_IRB/ar07.html "Section 871(k...
by Electron
Mon Apr 04, 2016 12:38 pm
Forum: Investing - Help with Personal Investments
Topic: Unwind my IRA?
Replies: 13
Views: 937

Re: Unwind my IRA?

One thing that I don't read much about on this site is that the advantage of a Roth conversion increases the longer it is held assuming that there are earnings and increased values. The converted Roth is not subject to taxes. A key factor in planning Roth Conversions is the marginal tax rate at the...
by Electron
Fri Apr 01, 2016 11:54 pm
Forum: Personal Finance (Not Investing)
Topic: AMT, how to avoid?
Replies: 21
Views: 1954

Re: AMT, how to avoid?

Here is an excellent article that is worth reviewing. https://www.kitces.com/blog/evaluating-exposure-to-the-alternative-minimum-tax-and-strategies-to-reduce-the-amt-bite/ Try to avoid the AMT bump zone. Note that there is a sweet spot after the bump zone. One of the key factors is understanding how...
by Electron
Wed Mar 30, 2016 12:11 pm
Forum: Investing - Help with Personal Investments
Topic: Unwind my IRA?
Replies: 13
Views: 937

Re: Unwind my IRA?

Age may also be a factor. Contributions to a non-deductible IRA may become less desirable as you approach retirement age. Capital gains and qualified dividends receive no special tax treatment and everything is taxed at ordinary income tax rates. It may help to compare the non-deductible IRA to a ta...
by Electron
Tue Mar 29, 2016 10:54 pm
Forum: Investing - Help with Personal Investments
Topic: Unwind my IRA?
Replies: 13
Views: 937

Re: Unwind my IRA?

To reverse the two IRA contributions, it looks as though you would withdraw the original contributions and associated earnings by April 15. The earnings would be taxable and must be reported. In addition, there is a 10% penalty on the earnings if under age 59.5. The associated earnings are given the...
by Electron
Tue Mar 29, 2016 9:48 pm
Forum: Personal Consumer Issues
Topic: Updates on the status of Linux
Replies: 70
Views: 4596

Re: Updates on the status of Linux

The DistroWatch website has a lot of helpful information. The right hand side of the main page provides a page hit ranking for all the popular distros. Linux Mint is at the top of the list. http://distrowatch.com/ I tried close to 20 distros with a ten year old computer and low end processor. The mo...
by Electron
Tue Mar 29, 2016 5:23 pm
Forum: Investing - Help with Personal Investments
Topic: Unwind my IRA?
Replies: 13
Views: 937

Re: Unwind my IRA?

One downside to Form 8606 is that it can stay around for a very long time after starting withdrawals.

You will have to file the extra form every year with your tax return as the IRA basis slowly declines over time.
by Electron
Mon Mar 28, 2016 12:18 pm
Forum: Investing - Help with Personal Investments
Topic: VWINX returns going forward?
Replies: 6
Views: 1056

Re: VWINX returns going forward?

John Bogle's book Common Sense on Mutual Funds provides simple models to project stock and bond returns for the decade ahead. The bond model uses the current bond yield which is about 2% for the Total Bond Market Index. The original model used the yield on Long Term Government bonds which might proj...
by Electron
Sun Mar 27, 2016 3:03 pm
Forum: Investing - Help with Personal Investments
Topic: Dividends
Replies: 17
Views: 2239

Re: Dividends

Here is an interesting table showing S&P 500 Dividend Growth on a yearly basis 1989-2015.

http://www.multpl.com/s-p-500-dividend- ... le/by-year

The chart below shows the S&P 500 dividend in 2016 dollars going back to 1871.

http://www.multpl.com/s-p-500-dividend/
by Electron
Sun Mar 27, 2016 1:58 pm
Forum: Investing - Help with Personal Investments
Topic: Dividends
Replies: 17
Views: 2239

Re: Dividends

Qualified Dividends do have tax benefits and especially if you have space in the 0% CG QD tax bracket. Note that the Total Stock Market Index currently has an SEC yield over 2%. That is also the case for the Total Bond Market Index. https://personal.vanguard.com/us/funds/snapshot?FundId=0585&Fun...
by Electron
Sat Mar 26, 2016 4:31 pm
Forum: Investing - Help with Personal Investments
Topic: Dividends
Replies: 17
Views: 2239

Re: Dividends

Most Financial Planners and many people in this forum recommend a Total Return approach. Typically you define an Asset Allocation, select your investments, and rebalance periodically. Income over time comes from Bond Interest, Stock Dividends, and Capital Gains. Here is some information on Getting S...

Go to advanced search