Search found 290 matches

by FactualFran
Sat Apr 22, 2017 5:46 pm
Forum: Investing - Theory, News & General
Topic: I don't understand the case for EE bonds
Replies: 184
Views: 8199

Re: I don't understand the case for EE bonds

If there was a significant possibility of upside potential with current EE bonds (7.5% would have me dancing right now :D), the entire equation would change. But a guaranteed .1% or 3.5% if you leave it tied up for twenty years just doesn't do it for me. I can't help but believe strongly that there...
by FactualFran
Sat Apr 22, 2017 12:36 pm
Forum: Investing - Theory, News & General
Topic: I don't understand the case for EE bonds
Replies: 184
Views: 8199

Re: I don't understand the case for EE bonds

But in 1985, Bogle was barely known and Reagan had the backing of the people. Our 6% bonds was competitive to CDs although we didn't get a toaster. And it was the toaster that eventually killed the S&Ls in the late 1980s. Today the bond market is easily understood and bought/sold. Savings Bonds...
by FactualFran
Sat Apr 22, 2017 11:51 am
Forum: Investing - Help with Personal Investments
Topic: Taxation of Treasury Bills (Question)
Replies: 8
Views: 532

Re: Taxation of Treasury Bills (Question)

This question assumes a taxable account. Treasury bills are sold at a price less than face value and the investor (who owns the security) receives the face value at maturity. The investor may sell prior to maturity and receive more or less (usually less) than the face value. My question is how is t...
by FactualFran
Sat Apr 22, 2017 11:42 am
Forum: Personal Consumer Issues
Topic: Comcast negotiations
Replies: 53
Views: 5167

Re: Comcast negotiations

Every 6 months I still get a call from them asking to rejoin for a basic plan of $25. I must be the only person who ever says no as the are always surprised when I say no unless they don't charge for the equipment as well (where they make a fortune). You are not the only one who has said no to Comc...
by FactualFran
Fri Apr 21, 2017 4:51 pm
Forum: Investing - Theory, News & General
Topic: I don't understand the case for EE bonds
Replies: 184
Views: 8199

Re: I don't understand the case for EE bonds

The stock market doesn't guarantee you a real return, but EE bonds don't guarantee a real return either . As I've posted above, from 1970 to 1990, holding this type of investment would have lost you a total of 41%. It seems that nearly everyone on this forum is justly concerned about long-term infl...
by FactualFran
Thu Apr 20, 2017 3:40 pm
Forum: Investing - Help with Personal Investments
Topic: TIPS auction April 20, 2017. Anyone participating?
Replies: 7
Views: 1014

Re: TIPS auction April 20, 2017. Anyone participating?

kolea wrote:As an FYI.... Price was $1008.65 and coupon = 0.125%. By my calculation that comes out to YTM = 0%.

At least it is not negative which I was worried about.

According to the auction results, the yield was slightly negative, -0.049%.
by FactualFran
Thu Apr 20, 2017 2:33 pm
Forum: Investing - Help with Personal Investments
Topic: I bonds May 2017
Replies: 30
Views: 2875

Re: I bonds May 2017

Of course I can redeem an I Bond in a year with minimum penalty and in 5 years with none and EE Bonds when purchased with the expectation of a 3.53% nominal return have an enormous penalty if redeemed in the first 19 years 364 days of ownership. I just can't get past being stuck in an investment wh...
by FactualFran
Thu Apr 20, 2017 2:18 pm
Forum: Investing - Theory, News & General
Topic: Bond fund dividend accrual-daily vs monthly
Replies: 5
Views: 512

Re: Bond fund dividend accrual-daily vs monthly

Per BlackRock and my 401k provider, BMOAX is a daily accrual fund but, unlike Vanguard's bond funds, pays dividends monthly out of the underlying fund. That is, the daily accrual is reflected in the NAV of the fund rather than have these dividends be in a separate bucket. So, when my fund was sold,...
by FactualFran
Wed Apr 19, 2017 3:39 pm
Forum: Investing - Help with Personal Investments
Topic: TaxAct not calculating capital gain harvesting properly?
Replies: 28
Views: 1567

Re: TaxAct not calculating capital gain harvesting properly?

Do you mean the schedule D tax form? It shows a $108 ST gain and a $376 LT loss. So Line 21 is -268. I actually prefer the tax forms to the online tax summaries and lists. The screen shots you posed indicated capital gains of $0 and $100, not a -$268 under one scenario and some other amount under t...
by FactualFran
Mon Apr 17, 2017 2:45 pm
Forum: Personal Finance (Not Investing)
Topic: Do I owe quarterly taxes if I didn't make money in Q1?
Replies: 8
Views: 793

Re: Do I owe quarterly taxes if I didn't make money in Q1?

When I say "issues" I basically mean- Am I going to subject myself to a much larger risk of being audited/are there a lot more hoops to jump through when sending them in uneven amount. I've heard of some form you need to fill out to prove you made uneven income. Is this difficult to fill ...
by FactualFran
Wed Apr 12, 2017 4:54 pm
Forum: Investing - Help with Personal Investments
Topic: Please help me understand IRA
Replies: 8
Views: 620

Re: Please help me understand IRA

Nondeductable contributions to a traditional IRA are not double taxed if you complete the right paperwork. When you make a nondeductable contribution to a traditional IRA you include with your federal income tax return a Form 8606. That form documents how much in nondeductable contributions have bee...
by FactualFran
Tue Apr 11, 2017 3:04 pm
Forum: Investing - Help with Personal Investments
Topic: Buying CD through brokerage
Replies: 17
Views: 1049

Re: Buying CD through brokerage

Could someone please explain what do these terms mean - Coupon Rate, Evaluated Price & YTM? How much does the lack of dividend reinvestment affect the CD? I was looking at CUSIP 254672UD8 specifically. I did not realize it is not a new issue. The Coupon Rate of a fixed-income security is the in...
by FactualFran
Mon Apr 10, 2017 2:44 pm
Forum: Investing - Help with Personal Investments
Topic: Buying CD through brokerage
Replies: 17
Views: 1049

Re: Buying CD through brokerage

It's through Schwab in their CD / Bond. That's why I asked the question about purchasing it via your brokerage account. Those of us without a Schwab account are unable to see the details about the CD. Though a brokerage account that I have, I see two Discover Bank CD issues that mature in 2022, hav...
by FactualFran
Sun Apr 09, 2017 1:01 pm
Forum: Investing - Help with Personal Investments
Topic: Front-end loads
Replies: 21
Views: 1771

Re: Front-end loads

Is that why we can have American funds in our 401K work plan without load fees? Since these fees would go to our broker and not American? The fees charged on mutual funds from load fund families bought in a 401(k) depends on the agreement between the 401(k) administrator and the employer sponsoring...
by FactualFran
Sat Apr 08, 2017 1:11 pm
Forum: Investing - Help with Personal Investments
Topic: Front-end loads
Replies: 21
Views: 1771

Re: Front-end loads

Thank you, FactualFran. So if my math is correct, and if you invested $500,000.00 in a 5.75% front end load fund (whether lump sum or over time), you would pay the fund management at least 28k for the privilege, and that's not even taking into account the ER and other little fees that may exist. Yi...
by FactualFran
Sat Apr 08, 2017 12:28 pm
Forum: Personal Finance (Not Investing)
Topic: What are the mechanics of paying my expense ratio?
Replies: 18
Views: 1156

Re: What are the mechanics of paying my expense ratio?

Let's use math because it helps provide me a more concrete example: 1) I have $1000 to invest 2) ETF XYZ is my choice, and currently it trades at $10 per share, which may or may not reflect net asset value 3) Assume no trading costs 4) I buy 100 shares of ETF 5) My money is then lumped in with ever...
by FactualFran
Sat Apr 08, 2017 12:10 pm
Forum: Investing - Help with Personal Investments
Topic: Front-end loads
Replies: 21
Views: 1771

Re: Front-end loads

In addition to what other have posted about the front-end load being charged for "new" money, the front-end load percent depends on the amount invested in the fund. Different funds have different front-end load breakpoints. Open https://www.americanfunds.com/individual/investments/share-cl...
by FactualFran
Sat Apr 08, 2017 11:58 am
Forum: Investing - Help with Personal Investments
Topic: Job Change - What to do with pension
Replies: 9
Views: 712

Re: Job Change - What to do with pension

What to do depends on additional details about the particular pension plan. Is the retirement benefit amount based only on a defined benefit formula that uses years of service and highest annual salary? With some pension plans, each employee has a pension account whose value grows even after the per...
by FactualFran
Fri Apr 07, 2017 3:27 pm
Forum: Personal Finance (Not Investing)
Topic: Cost basis of nontaxable distributions
Replies: 1
Views: 257

Re: Cost basis of nontaxable distributions

The adjusted basis is whatever it was as of the previous year's tax return. If this is the first year that there has been a nontaxable distribution, or something else that caused an adjustment to the basis, then the adjusted basis of the shares held is the cost of those shares.
by FactualFran
Thu Apr 06, 2017 2:28 pm
Forum: Personal Consumer Issues
Topic: STEM & "coding" toys for little ones ?
Replies: 41
Views: 3233

Re: STEM & "coding" toys for little ones ?

In addition to selecting individual items on your own, consider using a subscription kit service. Open https://www.wired.com/2012/11/subscription-boxes-for-kids/ and http://www.momalwaysfindsout.com/monthly-subscription-boxes/ for some reviews of, not necessarily STEM , subscription kits. Also, Amaz...
by FactualFran
Mon Apr 03, 2017 4:40 pm
Forum: Investing - Help with Personal Investments
Topic: Equity Income vs High Dividend Yield ETF (VYM)
Replies: 7
Views: 697

Re: Equity Income vs High Dividend Yield ETF (VYM)

Because you indicated that the Equity Income fund is not in a tax advantage account, putting money into the High Dividend Yield ETF (or the corresponding index mutual fund), rather than the actively managed Equity Income fund, would likely reduce the amount of capital gain distributions on which you...
by FactualFran
Tue Mar 28, 2017 3:26 pm
Forum: Personal Finance (Not Investing)
Topic: Backdoor Roth Tax Question
Replies: 4
Views: 370

Re: Backdoor Roth Tax Question

It looks to me that line 8 needs to be filled out in your case. The instructions for Part I on Form 8606 indicate that making a nondeductible contribution to a traditional IRA is one of the conditions for which Part I needs to be completed. Line 8 is in Part I. Line 16 but not line 8 would be filled...
by FactualFran
Mon Mar 27, 2017 3:22 pm
Forum: Personal Consumer Issues
Topic: Electric Space Heaters - Does expensive one heat better than cheap one?
Replies: 20
Views: 861

Re: Electric Space Heaters - Does expensive one heat better than cheap one?

I use the oil filled radiator heater in the bedroom and it works great. The heater I'm trying to replace would be used in the living room only when I need it - like watching TV for supplemental heat. The oil filled radiator will not work here as the room is too large. My question arose because at W...
by FactualFran
Fri Mar 24, 2017 1:57 pm
Forum: Investing - Help with Personal Investments
Topic: Thinking about adding a 5% position to commodities
Replies: 21
Views: 1459

Re: Thinking about adding a 5% position to commodities

Those are not ETFs, in case that's what you actually wanted. Those are ETNs, subject to issuer credit risk. In general I think you should probably prefer one of the commodity pools (e.g. DBC, the largest exchange-traded product in the commodity space, though expect a K-1 come tax time) or one of th...
by FactualFran
Thu Mar 23, 2017 4:19 pm
Forum: Investing - Help with Personal Investments
Topic: Buy on Ex-Div Date or Just Afterwards?
Replies: 7
Views: 588

Re: Buy on Ex-Div Date or Just Afterwards?

On the Vanguard fund profile, which date is of importance between "record date", "reinvest date", and "payable date?" Each are one day apart. Which of the dates is of importance depends on what it important to you. If it is important to you whether or not you will rece...
by FactualFran
Wed Mar 22, 2017 5:55 pm
Forum: Investing - Help with Personal Investments
Topic: Very Sad - Loss of Backdoor Roth IRA all these years
Replies: 19
Views: 4665

Re: Very Sad - Loss of Backdoor Roth IRA all these years

Folks, I am very sad now, i am in search on a fee-only-CFP-advisor and one advisor told me I was wrong and missed 10+ years of Backdoor Roth IRA conversions for my wife. Our MAGI is 200K and thus we are not eligible for Roth and I had a Trad-Rollover-IRA so I thought neither I nor my wife can do Ba...
by FactualFran
Tue Mar 21, 2017 2:28 pm
Forum: Personal Consumer Issues
Topic: Anybody using the TERMINAL over the GUI in ubuntu?
Replies: 45
Views: 2612

Re: Anybody using the TERMINAL over the GUI in ubuntu?

I use a GUI rather than using the monitor as a character device. If the concern is the performance being draggy, then try one of the lighter weight desktops, such as: LXDE (default desktop with the Lubuntu distribution) or MATE (default desktop with the Ubuntu MATE distribution)
by FactualFran
Mon Mar 20, 2017 2:27 pm
Forum: Investing - Help with Personal Investments
Topic: Vanguard Windsor - missing Cost Basis
Replies: 5
Views: 509

Re: Vanguard Windsor - missing Cost Basis

I don't see that on the Vanguard website - so there is no way to enter these orig transactions so that the Vanguard system can keep this info moving forward, and generate a complete 1099 at the time of future sale. I doubt that Vanguard will allow you to enter the transactions for noncovered shares...
by FactualFran
Fri Mar 17, 2017 2:51 pm
Forum: Investing - Help with Personal Investments
Topic: VWELX [Vanguard Wellington]
Replies: 40
Views: 3349

Re: VWELX [Vanguard Wellington]

What does everyone think about the oldest mutual fund in the country, VWELX? I was reading up on it and the returns on it since 1929 have been impressive, with a low expense ratio. Why not just invest in this one fund and forget everything else? According to http://www.investopedia.com/ask/answers/...
by FactualFran
Fri Mar 17, 2017 2:22 pm
Forum: Investing - Help with Personal Investments
Topic: Vanguard reinvested my dividends - what now?
Replies: 20
Views: 2138

Re: Vanguard reinvested my dividends - what now?

My question: how do I most cleanly deal with these reinvested dividends? Is there a form I can save from VG and use as a cost basis tracker for that money? Could I sell the reinvested amount now to clean up the mess? Is there anything I am missing? I suggest that you do nothing now about the divide...
by FactualFran
Thu Mar 16, 2017 3:15 pm
Forum: Personal Finance (Not Investing)
Topic: Federal tax withholding from job and pension
Replies: 10
Views: 800

Re: Federal tax withholding from job and pension

Depending on your circumstances, you can owe the IRS some money at tax time without having to pay a penalty. Generally, most taxpayers will avoid this penalty if they either owe less than $1,000 in tax after subtracting their withholding and estimated tax payments, or if they paid at least 90% of t...
by FactualFran
Sat Mar 11, 2017 1:07 pm
Forum: Personal Finance (Not Investing)
Topic: Must I Keep My Own Records for Dividends and Capital Gains?
Replies: 18
Views: 2272

Re: Must I Keep My Own Records for Dividends and Capital Gains?

How do you folks handle your re-invested capital gain and dividend records for mutual fund taxable accounts with Vanguard? For each Vanguard fund account with shares purchased before 2012, I have a spreadsheet with all of the transactions. Those shares are called noncovered shares because they are ...
by FactualFran
Fri Mar 10, 2017 3:54 pm
Forum: Investing - Theory, News & General
Topic: When is tax due on IRA distribution?
Replies: 14
Views: 829

Re: When is tax due on IRA distribution?

Is she expected to pay estimated tax on this for the quarter in which the transaction occurs? Or are IRA distributions different from earned income? Your mother is not necessarily expected to pay estimated tax for the quarter in which the transaction occurred. However, the details can get complicat...
by FactualFran
Thu Mar 09, 2017 4:45 pm
Forum: Personal Finance (Not Investing)
Topic: 2016 Foreign Tax Paid: Such a Deal???
Replies: 13
Views: 956

Re: 2016 Foreign Tax Paid: SUCH A DEAL ???

2. If I understand it correctly, I can deduct the $134 from my gross income. If so, the advantage of holding a foreign index fund in my taxable account (due to the deductibility of the foreign taxes paid) is smaller than I thought. ($134 * 25% = $33.50) According to the Instructions for Recipient o...
by FactualFran
Thu Mar 09, 2017 3:23 pm
Forum: Investing - Help with Personal Investments
Topic: Roth overcontribution excess removal profit and tax question
Replies: 7
Views: 275

Re: Roth overcontribution excess removal profit and tax question

Are they doing this correctly? If I rolled over a one million dollar ROTH from ex employer to my account would it make sense for the IRS to consider that a gain in a ROTH? That does not look correct. The calculation should be done as by Worksheet 1-4 of the Contributions Returned Before Due Date of...
by FactualFran
Mon Mar 06, 2017 4:24 pm
Forum: Investing - Help with Personal Investments
Topic: simple questions about cost basis (VG taxable account)
Replies: 7
Views: 439

Re: simple questions about cost basis (VG taxable account)

Seems to me that it would be nice if the numbers I end up putting on Schedule D next April were to agree with the 1099B VG will send to the IRS. That should be the case if you use Average Basis for noncovered shares. But if I want to use specID as my method, then the numbers puts on the 1099B will ...
by FactualFran
Fri Mar 03, 2017 5:39 pm
Forum: Investing - Help with Personal Investments
Topic: Municipal Bonds Question
Replies: 29
Views: 2851

Re: Municipal Bonds Question

It does not look like any crazy risk to me. The NASSAU CNTY one is the riskier of the two, and its interest payments are subject to Federal income tax.
by FactualFran
Thu Mar 02, 2017 3:06 pm
Forum: Personal Finance (Not Investing)
Topic: How to report 1099B cost basis discrepancy on non-covered shares?
Replies: 25
Views: 2069

Re: How to report 1099B cost basis discrepancy on non-covered shares?

All of that said, there's little to do here. I didn't mean to open up a rant, but cost basis is tough enough for many people, and this just creates more challenges than necessary. Just my opinion though. Challenges with noncovered shares are the same now as they were before the IRS introduced regul...
by FactualFran
Wed Mar 01, 2017 3:15 pm
Forum: Personal Finance (Not Investing)
Topic: 1099B Tax question
Replies: 25
Views: 931

Re: 1099B Tax question

Just realized I can't do any calculations as I don't know how much I paid. I have the number of shares, the proceeds, and the date acquired. So I guess I just take it as a gain? If you know the number of shares of a mutual fund purchases on a date and have found the NAV on the purchase date, then y...
by FactualFran
Tue Feb 28, 2017 5:33 pm
Forum: Personal Finance (Not Investing)
Topic: Not sure if required to file Form 2210?
Replies: 4
Views: 340

Re: Not sure if required to file Form 2210?

You are not required to file Form 2210. You can let the IRS determine the underpayment penalty. The IRS will determine an underpayment for each quarter by treating your income for the year as having been earned at the same rate throughout the year. If through the end of each quarter Q your timely es...
by FactualFran
Tue Feb 28, 2017 3:13 pm
Forum: Personal Finance (Not Investing)
Topic: How to report 1099B cost basis discrepancy on non-covered shares?
Replies: 25
Views: 2069

Re: How to report 1099B cost basis discrepancy on non-covered shares?

There's really no reason not to have specific lot ID shares listed going back decades, and when you see how easily accessible that information is available elsewhere, you have to ask yourself "why." The cost is a reason why Vanguard would keep track of noncovered shares in aggregate, rath...
by FactualFran
Mon Feb 27, 2017 3:33 pm
Forum: Personal Finance (Not Investing)
Topic: How to report 1099B cost basis discrepancy on non-covered shares?
Replies: 25
Views: 2069

Re: How to report 1099B cost basis discrepancy on non-covered shares?

It's a shame Vanguard has not provided the same detailed information that Fidelity does when it comes to non-covered shares. I can still see the cost basis for mutual shares at Fidelity going back more than 20 years, whereas Vanguard has basically thrown up its arms for all shares before January 20...
by FactualFran
Fri Feb 24, 2017 5:51 pm
Forum: Personal Finance (Not Investing)
Topic: Simple line item on IRS Form 8606 incorrect
Replies: 5
Views: 412

Re: Simple line item on IRS Form 8606 incorrect

Is a Roth IRA conversion what takes place when doing a Backdoor Roth? I followed the instructions from thefinancebuff ( https://thefinancebuff.com/the-backdoor-roth-ira-a-complete-how-to.html ) and White Coat Investor (http://whitecoatinvestor.com/backdoor-roth-ira-tutorial/) and they both fill in ...
by FactualFran
Thu Feb 23, 2017 3:44 pm
Forum: Personal Finance (Not Investing)
Topic: Specified ID Shares and Older VG Accounts/Purchases
Replies: 9
Views: 551

Re: Specified ID Shares and Older VG Accounts/Purchases

Thanks for the feedback 1. Specify to your broker or other agent the particular shares to be sold or transferred at the time of the sale or transfer, and That sounds officially correct but... Cannot do this at least thru online orders via Vanguard.com in the case of mutual fund shares purchased pri...
by FactualFran
Wed Feb 22, 2017 3:36 pm
Forum: Personal Finance (Not Investing)
Topic: Specified ID Shares and Older VG Accounts/Purchases
Replies: 9
Views: 551

Re: Specified ID Shares and Older VG Accounts/Purchases

Can I simply list the 'correct' basis in my tax return per my records and ignore the erroneous cost basis/dates VG is providing me? Should I *NOT* select adjustment code 'B' on my return (1099-B Basis Reported Incorrect) since basis is NOT reported to the IRS? In the events of an audit, are spreads...
by FactualFran
Wed Feb 22, 2017 3:03 pm
Forum: Investing - Help with Personal Investments
Topic: Is 60/40 too conservative for 31 year old?
Replies: 56
Views: 4864

Re: Is 60/40 too conservative for 31 year old?

Part of one of John Bogle's Twelve Pillars of Wisdom is: Pillar 2. When all else fails, fall back on simplicity. There are an infinite number of strategies worse than this one: Commit, over a period of a few years, half of your assets to a stock index fund and half to a bond index fund. Ignore inter...
by FactualFran
Wed Feb 15, 2017 4:42 pm
Forum: Personal Finance (Not Investing)
Topic: Cost basis reporting
Replies: 15
Views: 575

Re: Cost basis reporting

Or are you saying I need to do form 8949 anytime I sold shares even if covered to make sure it is correct? With covered shares, if there are no adjustments or special rules that require the transaction to be reported on Form 8949, then you can report the totals of those covered share transactions s...
by FactualFran
Mon Feb 13, 2017 4:22 pm
Forum: Personal Finance (Not Investing)
Topic: Broker withheld wrong amount from RMD, how do we report on taxes?
Replies: 17
Views: 1021

Re: Broker withheld wrong amount from RMD, how do we report on taxes?

I am authorized to access this account online, and I found a "Confirmation of Check Issuance" letter containing the following: In accordance with your instructions, this notice confirms that a check(s) was issued from the above-referenced account: Amount: [$1,500] Payable To: U.S. TREASUR...
by FactualFran
Mon Feb 13, 2017 3:59 pm
Forum: Personal Finance (Not Investing)
Topic: When to Convert T-IRA to Roth and Pay Estimated Tax?
Replies: 8
Views: 562

Re: When to Convert T-IRA to Roth and Pay Estimated Tax?

Do you have a penalty even when using the Annualized Income Installment Method? Using that approach might eliminate the penalty in your situation (large income chunk at the end of the year). In general, if your withholding suffices to cover your regular income, paying appropriate estimated tax conc...

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