Search found 445 matches

by FactualFran
Mon Nov 20, 2017 3:16 pm
Forum: Investing - Help with Personal Investments
Topic: Cost basis question about Vanguard's covered/uncovered mutual fund shares
Replies: 28
Views: 1355

Re: Cost basis question about Vanguard's covered/uncovered mutual fund shares

And a question. Are some suggesting above that one can hold a mix of same fund at same broker that is partly average cost method (the older uncovered) shares and partly specific ID (the newer covered shares)? I have always understood that a cost method election for a mutual fund was forever. Yes, i...
by FactualFran
Mon Nov 20, 2017 2:24 pm
Forum: Investing - Help with Personal Investments
Topic: Cost basis question about Vanguard's covered/uncovered mutual fund shares
Replies: 28
Views: 1355

Re: Cost basis question about Vanguard's covered/uncovered mutual fund shares

I understand your point about FIFO and SpecID, but does seem Vanguard draws a distinction between SpecID and FIFO, but maybe this is just a convenience for the customer when selling online? https://investor.vanguard.com/taxes/cost-basis/methods FIFO can be considered to be a preset way of determini...
by FactualFran
Mon Nov 20, 2017 1:58 pm
Forum: Personal Finance (Not Investing)
Topic: Help w/ NY state tax return and attachments
Replies: 3
Views: 328

Re: Help w/ NY state tax return and attachments

I don't know what you can do differently on your tax return. However, I suggest you get HR Block involved. Inform them of the notice you have received from NY State. Ask HR Block to confirm that the tax return generated by their software is correct from their point of view. If it is, then ask HR Blo...
by FactualFran
Fri Nov 17, 2017 3:45 pm
Forum: Investing - Help with Personal Investments
Topic: [Traditional to Roth IRA conversion - backdoor?]
Replies: 6
Views: 353

Re: [Traditional to Roth IRA conversion - backdoor?]

If the total balance of an individual's traditional, SEP, and SIMPLE IRAs is $X and the total basis (non-deducted contributions) of those IRAs is $X, then income tax would not be owed on a conversion done from those IRAs to a Roth IRA. If the total basis was half of the balance, then income tax woul...
by FactualFran
Thu Nov 16, 2017 6:03 pm
Forum: Investing - Help with Personal Investments
Topic: Cost basis question about Vanguard's covered/uncovered mutual fund shares
Replies: 28
Views: 1355

Re: Cost basis question about Vanguard's covered/uncovered mutual fund shares

I'm not an expert, but I think if you ever used the average cost basis in the past to sell shares of this fund, you can't now change to a different cost basis method for this fund. (The covered/uncovered shares might throw a bit of a wrinkle into that, since those are kind of separated within a sin...
by FactualFran
Tue Nov 14, 2017 3:10 pm
Forum: Investing - Theory, News & General
Topic: The 4% rule DOES fail but still makes sense!
Replies: 174
Views: 11340

Re: The 4% rule DOES fail but still makes sense!

First, many MMM people's claim is: the 4% rule never fails. They did not understand the statistics. The original 4% rule calculation had a success rate of about 96%, so it did fail in about 4% of the tested cases. I don't know who the MMM people are, but the 4% inital withdrawal rate idea originate...
by FactualFran
Thu Nov 09, 2017 4:16 pm
Forum: Investing - Help with Personal Investments
Topic: Cost Basis Method Selling VTSAX in Taxable?
Replies: 22
Views: 1568

Re: Cost Basis Method Selling VTSAX in Taxable?

Edited to add: as others have said, another reason to use Spec ID is to give you better control over whether the capital gains/losses you incur are short-term or long-term. If you do not specify which shares you're selling, you may end up with a sale resulting in short-term gains/losses, which are ...
by FactualFran
Thu Nov 09, 2017 4:10 pm
Forum: Investing - Help with Personal Investments
Topic: Cost Basis Method Selling VTSAX in Taxable?
Replies: 22
Views: 1568

Re: Cost Basis Method Selling VTSAX in Taxable?

I think you can change it after you set it. So maybe you can sell at Average Cost and later decide to switch to SpecID without a problem. That depends on whether one considers it to be a problem that all the shares bought before the change from Average Basis to SpecID (but not yet sold) have a cost...
by FactualFran
Wed Nov 08, 2017 3:23 pm
Forum: Investing - Theory, News & General
Topic: [Yahoo Finance no longer works - Alternatives to download securities quotes]
Replies: 247
Views: 21033

Re: [Yahoo Finance no longer works - Alternatives to download securities quotes]

For people who just want to download a .csv file of the latest prices of a list of tickers, it looks like Yahoo's json api still works, e.g. http://query1.finance.yahoo.com/v7/finance/quote?symbols=aapl,goog,amzn,msft&fields=regularMarketPrice which you can chain thru a site like "powered by json-c...
by FactualFran
Fri Nov 03, 2017 4:05 pm
Forum: Investing - Help with Personal Investments
Topic: "Re-Recharacterize" Traditional to Roth
Replies: 12
Views: 658

Re: "Re-Recharacterize" Traditional to Roth

Thank you. This is what i expected. by chance, do you know if i am able to create another traditional IRA in 2017 and perform the back door roth as i originally intended? I don't see what good creating a new tradition IRA for this year would do. When a traditional IRA to Roth IRA conversion is done...
by FactualFran
Fri Nov 03, 2017 2:54 pm
Forum: Investing - Help with Personal Investments
Topic: How consistent will VNQ dividend be?
Replies: 65
Views: 3570

Re: How consistent will VNQ dividend be?

Here is a chart that shows the annual dividend increase/decrease: https://www.dividendinvestor.com/dividend-quote-new/?Symbol=VNQ As you can see, the only time the dividend decreased was from 2007-2010. Every other year saw an increase. For a longer history, back to 1997, open the URL for the inves...
by FactualFran
Fri Nov 03, 2017 2:42 pm
Forum: Investing - Help with Personal Investments
Topic: "Re-Recharacterize" Traditional to Roth
Replies: 12
Views: 658

Re: "Re-Recharacterize" Traditional to Roth

You likely cannot re-recharacterize. In order to recharacterize from a traditional IRA to a Roth IRA you need to meet the requirement for making a contribution directly to a Roth IRA. The fact that you did a backdoor Roth contribution indicates that you do not meet the requirements for making a cont...
by FactualFran
Thu Nov 02, 2017 6:48 pm
Forum: Investing - Help with Personal Investments
Topic: How consistent will VNQ dividend be?
Replies: 65
Views: 3570

Re: How consistent will VNQ dividend be?

The dividends of the fund have not been consistent from quarter-to-quarter. For the investor shares of the fund, during 2016 the four quarterly dividends per share were: $0.296, $0.243, $0.189, and $0.552. Someone who had an account in investor shares of the fund at the end of 2010 and the only tran...
by FactualFran
Mon Oct 30, 2017 4:52 pm
Forum: Personal Consumer Issues
Topic: Megabus from New York City to Washington DC
Replies: 23
Views: 1544

Re: Megabus from New York City to Washington DC

Never taken one myself, but several folks I know take them regularly. I know there are several, but I heard good things about vamoose https://www.vamoosebus.com/ Never heard of Vamoose but I'll look it up. Thanks. Check that Vamoose stops in DC where you want (you mentioned Union Station in DC in t...
by FactualFran
Fri Oct 27, 2017 5:11 pm
Forum: Investing - Theory, News & General
Topic: Withdrawal Rate Conundrum
Replies: 12
Views: 1390

Re: Withdrawal Rate Conundrum

Okay, so how do I calculate a SWR when real estate is part of the portfolio? If real estate is part of the portfolio, then money from it that is withdrawn from the portfolio is included when calculating the withdrawal rate from the portfolio. A SWR and an actual withdrawn rate are two different con...
by FactualFran
Fri Oct 27, 2017 4:58 pm
Forum: Personal Finance (Not Investing)
Topic: Tax Return - Back door conversion
Replies: 3
Views: 254

Re: Tax Return - Back door conversion

A Form 8606 needs to be filed when one makes a nondeductible contribution to a traditional IRA. Because you made a nondeductible contribution to a tradition IRA for 2016, you need to file a Form 8606 for 2016. You need to do that even though the contribution was made in 2017. Download https://www.ir...
by FactualFran
Fri Oct 27, 2017 3:30 pm
Forum: Investing - Help with Personal Investments
Topic: One Total Market Index Fund vs Three Different Cap Index Fund
Replies: 19
Views: 1948

Re: One Total Market Index Fund vs Three Different Cap Index Fund

There are likely a number of reasons why a portfolio of three market-size stock index funds have performed differently than a single total stock market index fund. Some other posts have mentioned that 30% large, 20% mid, 20% small differs from the large, mid, and small percentages within the single ...
by FactualFran
Thu Oct 26, 2017 3:15 pm
Forum: Investing - Theory, News & General
Topic: Withdrawal Rate Conundrum
Replies: 12
Views: 1390

Re: Withdrawal Rate Conundrum

The withdrawal rate from your investment portfolio is 3.96%. Social Security and annuities making payments are not investments. You control what you hold in your investment portfolio. You do not control what Social Security or an annuity provider holds.
by FactualFran
Wed Oct 18, 2017 6:25 pm
Forum: Personal Finance (Not Investing)
Topic: couple of questions regarding inflation and the 4% rule
Replies: 19
Views: 2077

Re: couple of questions regarding inflation and the 4% rule

Concerning Bengen's use of the average inflation rate of 3%, see the Appendix box on page 9 of the pdf (page 179 in the journal issue) that you provided a link to. For years after the ending year of the actual data, he used the average return of stocks (10.3%), average return of bonds (5.2%), and th...
by FactualFran
Wed Oct 18, 2017 3:00 pm
Forum: Personal Finance (Not Investing)
Topic: couple of questions regarding inflation and the 4% rule
Replies: 19
Views: 2077

Re: couple of questions regarding inflation and the 4% rule

I think that the most you can say is that the period studied by Bengen is from 1926-1994. Those are historical data and should be viewed as such. It's tempting to use officially published inflation values because it makes sense. However, he did not do that. The last sentence of the first section of...
by FactualFran
Tue Oct 17, 2017 4:24 pm
Forum: Investing - Theory, News & General
Topic: Vanguard's Global Wellesley Income and Global Wellington Funds in registration [now available]
Replies: 112
Views: 25848

Re: Vanguard's Global Wellesley Income and Global Wellington Funds in registration

Today (Oct. 17, 2017) Vanguard filed with the SEC a supplement to the previously filed prospectus for each of the new funds that each fund: "is holding a subscription period from October 18, 2017, through November 1, 2017. During this period, the Fund will invest in money market instruments rather t...
by FactualFran
Tue Oct 17, 2017 3:37 pm
Forum: Investing - Help with Personal Investments
Topic: Sell fund cost basis
Replies: 10
Views: 792

Re: Sell fund cost basis

When one uses Average Basis, the shares sold are the first shares in. That is, Average Basis forces FIFO. So there is Average Basis FIFO and Specific ID FIFO. There is also "I forgot to set the basis method" FIFO where one can choose at the time they fill out their tax return the basis method. Choo...
by FactualFran
Mon Oct 16, 2017 2:32 pm
Forum: Personal Finance (Not Investing)
Topic: ACA stay below 250% FPL for 2017?
Replies: 16
Views: 1370

Re: ACA stay below 250% FPL for 2017?

Is there any reason why I should still try to stay below 250% FPL for this year 2017 given the upheaval about CSR for 2018? In general, the lower your income the less the maximum premium payment. Going from just below 250% FPL to above it increases your maximum premium payment from being about 8.2%...
by FactualFran
Fri Oct 13, 2017 2:18 pm
Forum: Personal Finance (Not Investing)
Topic: Help me understand what happens with the new law and ACA subsidies
Replies: 80
Views: 5893

Re: Help me understand what happen with the new law and ACA subsidies

Help me understand what happen with the new law and ACA subsidies. My income is under 44k will I be affected? In another reply, rob65 wrote What was eliminated by the executive order was the cost sharing reduction that lowered deductibles, co-pays, and out-of-pocket maximums for Silver plans for pe...
by FactualFran
Wed Oct 04, 2017 5:51 pm
Forum: Investing - Theory, News & General
Topic: Sequence of returns and retirement
Replies: 8
Views: 1070

Re: Sequence of returns and retirement

Whether you are making sense depends on what you want to calculate. If you want to calculate what would have happened with 1966 as the starting year, then year 1 is 1966, year 2 is 1967, year 3 is 1968, and so on. 1966 as the starting year is a bad case scenario not only because of the return and in...
by FactualFran
Mon Sep 25, 2017 2:25 pm
Forum: Investing - Theory, News & General
Topic: VG wants everyone to transfer to a brokerage account?
Replies: 97
Views: 9736

Re: VG wants everyone to transfer to a brokerage account?

All the people who are completely unconcerned with reinvestment of dividends have probably never been confronted with Vg's IT method of treating wash sales which completely negates the use of specific ID cost basis I have never had a problem with Vg's IT method of anything. I have avoided making wa...
by FactualFran
Fri Sep 22, 2017 4:10 pm
Forum: Investing - Theory, News & General
Topic: VG wants everyone to transfer to a brokerage account?
Replies: 97
Views: 9736

Re: VG wants everyone to transfer to a brokerage account?

Having dividends reinvested in a taxable account is an accounting nightmare. Having those dividends reinvested in a separate account would be a nightmare squared. In my experience, it has not been a nightmare. For each mutual fund distribution that is reinvested in the same fund, I add one row to t...
by FactualFran
Thu Sep 21, 2017 2:25 pm
Forum: Investing - Theory, News & General
Topic: "Find out if your fund is declaring a quarterly dividend this month."
Replies: 17
Views: 3542

Re: VTSAX September 2017 Dividend date?

Looking at the Distribution web page for the fund about a minute ago, the most recent distribution of the fund was $0.253 per share with a Record Date of 09/20/2017, a Reinvestment Date of 09/21/2017, a Payable Date of 09/22/2017, and a not yet known Reinvestment Price.
by FactualFran
Wed Sep 20, 2017 4:42 pm
Forum: Investing - Help with Personal Investments
Topic: Vanguard total us dividend for Sept?
Replies: 10
Views: 1358

Re: Vanguard total us dividend for Sept?

or train yourself not to care. There is no evidence that I have seen that VG has ever failed to pay a quarterly or even a monthly dividend that was the norm for the fund/ETF? Are there that many people who depend on the dividend being delivered on say, 9/20 vs. 9/21 .....? A Vanguard fund that norm...
by FactualFran
Mon Sep 18, 2017 4:23 pm
Forum: Personal Consumer Issues
Topic: Transferring I Bonds to Son
Replies: 14
Views: 728

Re: Transferring I Bonds to Son

Here is a relevant quote from § 363.55 May I transfer my book-entry savings bonds to another person? (a) You may transfer a savings bond or a portion of a savings bond to the TreasuryDirect® account of another person in a minimum amount of $25. The transfer may only be made as a gift or in response ...
by FactualFran
Fri Sep 15, 2017 3:42 pm
Forum: Personal Finance (Not Investing)
Topic: Traditional IRA Deductions
Replies: 4
Views: 211

Re: Traditional IRA Deductions

According to the Limits if Covered by Employer Plan of IRS Publication 590-A, Contributions to Individual Retirement Arrangements (IRAs): "If either you or your spouse was covered by an employer retirement plan, you may be entitled to only a partial (reduced) deduction or no deduction at all, depend...
by FactualFran
Thu Sep 14, 2017 2:33 pm
Forum: Personal Finance (Not Investing)
Topic: Use IRS Direct Pay for estimated tax payments on irregular Roth conversions?
Replies: 19
Views: 1322

Re: Use IRS Direct Pay for estimated tax payments on irregular Roth conversions?

The answer to the question posed in the opening post: "Is this an acceptable (to the IRS) way of paying my estimated tax?" is maybe. After you file tax return for the year the IRS will check if the amount withheld (and only withheld, not including the estimated payments) was more than the income tax...
by FactualFran
Wed Sep 13, 2017 4:09 pm
Forum: Investing - Help with Personal Investments
Topic: Back-door Roth even if under limit?
Replies: 13
Views: 1009

Re: Back-door Roth even if under limit?

mega317 wrote:
Wed Sep 13, 2017 3:41 pm
How does this affect earnings?
It does not affect earnings. Perhaps, I don't understand what you mean by earnings.
by FactualFran
Wed Sep 13, 2017 3:29 pm
Forum: Investing - Help with Personal Investments
Topic: Back-door Roth even if under limit?
Replies: 13
Views: 1009

Re: Back-door Roth even if under limit?

Another, likely better, approach is: If your income for the year turns out to below the limit to have contributed to a Roth IRA, then recharacterize the contribution that was made earlier to a traditional IRA to a Roth, rather than doing a conversion to a Roth.
by FactualFran
Mon Sep 11, 2017 2:39 pm
Forum: Investing - Help with Personal Investments
Topic: first time CD through V Brokerage: any cautions?
Replies: 9
Views: 1299

Re: first time CD through V Brokerage: any cautions?

With a brokerage CD bought in the secondary market, you need to be aware than the quoted Yield to Maturity or Yield to Worst are calculated without including the commission that you may be charged on the transaction. Due to the commission, the yield for you will be less than the quoted yield. The lo...
by FactualFran
Mon Sep 11, 2017 1:50 pm
Forum: Investing - Theory, News & General
Topic: Vanguard Target Date 2015 vs Managed Payout - Is this a dumb question?
Replies: 10
Views: 2021

Re: Vanguard Target Date 2015 vs Managed Payout - Is this a dumb question?

This thing is paying out 5%/year and the balance is still increasing by 5%/year? Yes, the Vanguard Managed Payout fund has been paying out at least 5% on an investment made at the end of 2008. As of the end of 2016, the balance of the account would have been 5%/year greater than the balance at the ...
by FactualFran
Thu Sep 07, 2017 2:13 pm
Forum: Investing - Theory, News & General
Topic: Dividends and Withdrawal Rate
Replies: 39
Views: 3504

Re: Dividends and Withdrawal Rate

I understand that the "experts" categorize dividends as a withdrawal from your portfolio. But it just feels a lot safer than selling shares to fund withdrawals. I personally do not consider taking a 2% dividend as a 2% withdrawal from my portfolio. I suspect the "experts" would state it more carefu...
by FactualFran
Thu Sep 07, 2017 2:01 pm
Forum: Personal Finance (Not Investing)
Topic: Inherited Savings Bonds
Replies: 30
Views: 1997

Re: Inherited Savings Bonds

Interesting. So if the interest "should" have been reported in the year the bond matured, will the institution that cashes them now report interest income to the IRS? Yes, the institution that cashes Savings Bonds will issue a Form 1099. The institution will also ask for the Social Security Number ...
by FactualFran
Thu Sep 07, 2017 1:48 pm
Forum: Personal Finance (Not Investing)
Topic: Backdoor Roth. Is it listed on 1040 as IRA Distribution?
Replies: 51
Views: 2308

Re: Backdoor Roth. Is it listed on 1040 as IRA Distribution?

My concern is, errors are still there. He has simply changed the line that said taxable to zero from $5,500, admitting it was an error on his part, but still has the "$16,500" for the IRA distributions. Simply changing line 15b on Form 1040 sound questionable, as at least one other poster has point...
by FactualFran
Wed Sep 06, 2017 5:39 pm
Forum: Personal Finance (Not Investing)
Topic: Backdoor Roth. Is it listed on 1040 as IRA Distribution?
Replies: 51
Views: 2308

Re: Backdoor Roth. Is it listed on 1040 as IRA Distribution?

In the tax preparer's defense, (s)he may do a lot of business returns and yours is the only return that has a backdoor Roth. I wouldn't expect him to remember this from year to year. In fact, Bogleheads often report this same problem with their preparer. Their training/certification likely doesn't ...
by FactualFran
Wed Sep 06, 2017 5:09 pm
Forum: Personal Finance (Not Investing)
Topic: Inherited Savings Bonds
Replies: 30
Views: 1997

Re: Inherited Savings Bonds

My first question is will the Treasury even reissue savings bonds that have reached their maturity? No. Once they matured, the only option is to redeem the bonds. Also no to basis step-up. Also, the interest should have been reported on an income tax return for the year when the Savings Bonds matur...
by FactualFran
Wed Sep 06, 2017 2:24 pm
Forum: Investing - Theory, News & General
Topic: Vanguard funds with purchase fees; ETFs without. How come?
Replies: 26
Views: 2958

Re: Vanguard funds with purchase fees; ETFs without. How come?

The second thing is the data from ETF.com I posted here . We see that the average spread is 0.07% and the median premium discount is 0.31% (albeit with quite some variability). The sum of the two quantities is half the 0.75% purchase fee of the mutual fund. Thank you. It helps to have short and sim...
by FactualFran
Wed Sep 06, 2017 1:18 pm
Forum: Investing - Theory, News & General
Topic: Vanguard funds with purchase fees; ETFs without. How come?
Replies: 26
Views: 2958

Re: Vanguard funds with purchase fees; ETFs without. How come?

As for the real question, an investor is usually better off with the ETF because the costs there are lower unless perhaps you hold for a very long time. [...] There's no reason to expect the "ETF hidden costs" to be equal here and in general. Thanks, this was my perception, but I know very little a...
by FactualFran
Wed Sep 06, 2017 1:13 pm
Forum: Investing - Theory, News & General
Topic: Vanguard funds with purchase fees; ETFs without. How come?
Replies: 26
Views: 2958

Re: Vanguard funds with purchase fees; ETFs without. How come?

Maybe I should have phrased my question about the ETF liquidity stats differently. What do you see in there that could lead to ETF hidden costs similar to the MF purchase fee? The bid/ask spread involved in one (small) rebalancing operation isn't going to be 0.75% or even 0.25%, I suspect... The hi...
by FactualFran
Tue Sep 05, 2017 3:23 pm
Forum: Investing - Theory, News & General
Topic: Vanguard funds with purchase fees; ETFs without. How come?
Replies: 26
Views: 2958

Re: Vanguard funds with purchase fees; ETFs without. How come?

Ok, I understand that the ETF process involves a bid/spread, and this is an impactful hidden cost, but it still baffles me that 0.75% of the funds would be subtracted from each MF purchase. Dooesn't seem Vanguard-ish at all. I'm sure there is a good reason, and this probably has to do with liquidit...
by FactualFran
Tue Sep 05, 2017 1:52 pm
Forum: Investing - Help with Personal Investments
Topic: Corrected Consolidated 1099 from Vanguard - Help!
Replies: 11
Views: 1125

Re: Corrected Consolidated 1099 from Vanguard - Help!

If angelbell is interested in an independently calculated cost of the covered and non-covered shares to compare to what has been received from Vanguard, then I am willing to do the calculations if the only transactions were a single purchase automatic reinvestment of all distributions a single redem...
by FactualFran
Fri Sep 01, 2017 5:16 pm
Forum: Investing - Help with Personal Investments
Topic: Assigning Tax Lots to Mutual Funds
Replies: 10
Views: 621

Re: Assigning Tax Lots to Mutual Funds

If I'm reading the 1099 correctly, the basis was not reported. Additionally it seems as though I made another mistake. The 1099 says the following: 'Long Term Gains/Losses - Report on Form 8949, Part II with Box E checked. I think that I (or rather Tax Act) reported them on 1040 Line 8A which is in...
by FactualFran
Fri Sep 01, 2017 3:58 pm
Forum: Investing - Help with Personal Investments
Topic: Assigning Tax Lots to Mutual Funds
Replies: 10
Views: 621

Re: Assigning Tax Lots to Mutual Funds

The 1099 reported the sales against purchases made in 2008. Does the 1099 from the brokerage also indicate that the basis reported on it was not reported to the IRS? That should be the case with mutual funds. However, that does not completely get you off the hook of filing an amended return. When s...
by FactualFran
Fri Sep 01, 2017 2:50 pm
Forum: Investing - Help with Personal Investments
Topic: Assigning Tax Lots to Mutual Funds
Replies: 10
Views: 621

Re: Assigning Tax Lots to Mutual Funds

Because you had the mutual funds for eight or nine years and for the first three or four years distributions were reinvested, it sounds as if the shares purchased by reinvesting the distributions were purchased before the start of 2012. In that case, they are noncovered shares and the brokerage does...