Search found 967 matches

by Geologist
Thu Mar 23, 2017 8:47 pm
Forum: Investing - Theory, News & General
Topic: Why nobody talk about cash allocation ?
Replies: 15
Views: 1381

Re: Why nobody talk about cash allocation ?

lifeisagame wrote:
What about deflation?



If you are worried about deflation, then what you want are long Treasuries, not cash.
by Geologist
Thu Mar 23, 2017 8:41 pm
Forum: Investing - Help with Personal Investments
Topic: Why did my fund GO UP so much?
Replies: 32
Views: 2264

Re: Why did my fund GO UP so much?

I just think it is high time we had a thread on funds going up, especially unexpectedly. That is, unless livesoft was expecting this sort of increase. :D
by Geologist
Mon Mar 20, 2017 9:33 am
Forum: Investing - Theory, News & General
Topic: Vanguard fund managed by Legg Mason
Replies: 1
Views: 349

Re: Vanguard fund managed by Legg Mason

Many of Vanguard's actively managed funds have outside advisors. These are often, but not always, competitors. Wellington Management, pretty much the oldest advisor to a Vanguard Fund, is a case in point. Vanguard Primecap is managed by a company that has its own funds too. Thus, there is nothing un...
by Geologist
Sat Mar 18, 2017 9:13 pm
Forum: Personal Finance (Not Investing)
Topic: need for under/uninsured car insurance with adequate medical ins?
Replies: 10
Views: 479

Re: need for under/uninsured car insurance with adequate medical ins?

Also, what about if you have an occupant in your car who is not a family member? Your medical insurance will not cover them.
by Geologist
Sat Mar 18, 2017 7:24 pm
Forum: Investing - Theory, News & General
Topic: Investing in - WATER - thoughts
Replies: 57
Views: 3501

Re: Investing in - WATER - thoughts

Water has been thought of as an upcoming commodity to be fought over for decades. The question is whether you can make money by investing in it somehow. I'm dubious, unless you are actually inventing a new technology that will be useful somewhere (even if only in limited areas).
by Geologist
Sat Mar 18, 2017 7:20 pm
Forum: Investing - Help with Personal Investments
Topic: newbie's question about bond etf (BND)
Replies: 11
Views: 638

Re: newbie's question about bond etf (BND)

Total US Bond index funds like BND will have bonds entering the fund and bonds leaving the fund. The turnover reported last year was 61% [google "BND turnover"]. BND engages in mortgage-dollar-rolls. This is accounted as turnover, although it isn't really turnover in the formal sense. (I'...
by Geologist
Tue Mar 14, 2017 6:33 pm
Forum: Investing - Help with Personal Investments
Topic: Vanguard Total Stock Market Index Fund Composition
Replies: 8
Views: 1066

Re: Vanguard Total Stock Market Index Fund Composition

The fund likely keeps some cash on hand to pay people who redeem shares so the fund doesn't necessarily have to sell stock immediately. I'm not sure about the foreign stock. Why don't you look at an annual report to see what it is? If you look at the prospectus, you will see that the fund isn't obli...
by Geologist
Tue Mar 14, 2017 9:53 am
Forum: Investing - Theory, News & General
Topic: Fewer investment grade corporate bonds due to tax proposal?
Replies: 7
Views: 431

Re: Fewer investment grade corporate bonds due to tax proposal?

The problem is that there is so much proposed legislation and much of it never becomes law that discussions of proposals can easily become pointless.
by Geologist
Tue Mar 14, 2017 9:47 am
Forum: Investing - Theory, News & General
Topic: Fewer investment grade corporate bonds due to tax proposal?
Replies: 7
Views: 431

Re: Fewer investment grade corporate bonds due to tax proposal?

You are a relatively new poster, but discussions of proposed legislation are off topic (see forum policies) and this thread will be locked.
by Geologist
Tue Mar 14, 2017 8:34 am
Forum: Personal Finance (Not Investing)
Topic: Inherited IRA rmd from different IRA
Replies: 3
Views: 406

Re: Inherited IRA rmd from different IRA

BL is correct. You must take minimum distributions from your inherited IRA every year. You may not substitute distributions from your own personal IRA's.
by Geologist
Sun Mar 12, 2017 8:26 am
Forum: Personal Finance (Not Investing)
Topic: Roth Conversion from an IRA Account with only After Tax Money
Replies: 28
Views: 1379

Re: Roth Conversion from an IRA Account with only After Tax Money

Well it was a long time ago and I don't have records from then and neither does Schwab. Evidently I can't even order copies from the IRS. Not quite sure what to do at this point. Might just be easier to pay the tax on the hole thing and forget the portion that had already been taxed. Hurts a bit bu...
by Geologist
Sat Mar 11, 2017 4:10 pm
Forum: Investing - Theory, News & General
Topic: Which Vanguard Tax-Exempt fund?
Replies: 22
Views: 2146

Re: Which Vanguard Tax-Exempt fund?

You checked the wrong number. Vanguard's long-term single-state funds have an average maturity of about 17 years, but a duration of about 7 years, the same as the national long-term funds. Sorry - yes - the maturity of the state fund is about 17 years vs. 8.8 years for Intermediate Term Tax Exempt....
by Geologist
Sat Mar 11, 2017 3:55 pm
Forum: Personal Finance (Not Investing)
Topic: Must I Keep My Own Records for Dividends and Capital Gains?
Replies: 18
Views: 2063

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

I agree that you would be smart to keep your own records. While this might seem daunting if you already have many years and transactions, nothing says you have to enter everything at once. I entered every transaction (in Quicken) in my case for each fund I owned (and actually for my parents too) gra...
by Geologist
Sat Mar 11, 2017 3:51 pm
Forum: Personal Finance (Not Investing)
Topic: Roth Conversion from an IRA Account with only After Tax Money
Replies: 28
Views: 1379

Re: Roth Conversion from an IRA Account with only After Tax Money

I was wondering about whether Form 8606 existed back then too. This was long before the existence of Roth IRA's. However, there must have been a form or line on Form 1040 for deductible and non-deductible IRA contributions. People making them needed to keep their tax returns (whether they included 8...
by Geologist
Fri Mar 10, 2017 10:25 pm
Forum: Investing - Help with Personal Investments
Topic: When/if municipal bonds will default, do municipalities try to delay as long as possible?
Replies: 4
Views: 420

Re: When/if municipal bonds will default, do municipalities try to delay as long as possible?

I'm not sure that the municipality necessarily has an incentive to publicize its difficulties, but most municipalities in financial trouble can't keep it a secret. They have to publish financial information. As an earlier poster mentioned, some places are well known for their troubles. That means th...
by Geologist
Fri Mar 10, 2017 10:17 pm
Forum: Personal Finance (Not Investing)
Topic: Roth Conversion from an IRA Account with only After Tax Money
Replies: 28
Views: 1379

Re: Roth Conversion from an IRA Account with only AFter Tax Money

Do you have any other traditional IRA's (or rollover IRA's that are not Roth IRA's)? If so, you cannot just convert the IRA with after tax money (and its earnings, I assume) even though you kept it separate. You need to know how much you contributed in deductible funds (what you call "after-tax...
by Geologist
Fri Mar 10, 2017 6:51 pm
Forum: Investing - Help with Personal Investments
Topic: Credit union safety
Replies: 16
Views: 1056

Re: Credit union safety

I bought a brokered two-year CD from a bank with satisfactory ratings and it failed within a year. The CD was within the FDIC limit. I received the principal and accrued interest within two days in my money market account. My conclusion would be to agree with dm200 that the ratings aren't too useful...
by Geologist
Fri Mar 10, 2017 6:46 pm
Forum: Personal Finance (Not Investing)
Topic: Tax Question on Refund from the State
Replies: 16
Views: 872

Re: Tax Question on Refund from the State

Most individuals are cash basis taxpayers, so you received the state tax refund in 2017, so it becomes a possible issue for federal taxes in 2017. Whether it is federally taxable depends, as a previous poster noted, on whether that $3500 was part of a state tax deduction if you itemized on your fede...
by Geologist
Fri Mar 10, 2017 6:42 pm
Forum: Investing - Theory, News & General
Topic: Anyone sorry they used bonds when starting out
Replies: 94
Views: 6654

Re: Anyone sorry they used bonds when starting out

The humorist Dave Barry suggested that one of the most useful tools in investing is a time machine. Since I don't have one, I don't spend a lot of time worrying about what I would have done differently if I had known what I know now at age 25. Without the time machine, I can't change it.
by Geologist
Sat Mar 04, 2017 8:34 pm
Forum: Investing - Help with Personal Investments
Topic: Should I sell bond fund because FED's heads-up on rate increase?
Replies: 13
Views: 1608

Re: Should I sell bond fund because FED's heads-up on rate increase?

But in fact "the folks who actually control the interest rate" don't actually control the interest rates on medium-term bonds. What the Fed controls (and Yellen suggest would be changed in March) is the overnight rate. How medium-term rates would respond to this change in ultrashort term r...
by Geologist
Tue Feb 28, 2017 8:43 pm
Forum: Investing - Theory, News & General
Topic: 1099-DIV and bond funds
Replies: 4
Views: 437

Re: 1099-DIV and bond funds

For what it is worth, GNMA's are not exempt from state taxation in any state (that has an income tax).
by Geologist
Mon Feb 27, 2017 10:11 pm
Forum: Investing - Theory, News & General
Topic: [Vanguard] Shareholder rights
Replies: 9
Views: 544

Re: Shareholder rights

Vanguard has certainly added, dropped, or replaced outside managers on actively managed funds without shareholder votes in the past (one example is International Growth, but there are others). Therefore, they could at least do that to Wellington Management without shareholder votes, no matter the lo...
by Geologist
Mon Feb 27, 2017 9:14 pm
Forum: Investing - Theory, News & General
Topic: I think Buffet sees oil price go lower
Replies: 25
Views: 1825

Re: I think Buffet sees oil price go lower

In the interview he says he is heavily invested in Airlines. Doesn't it mean he is thinking lower oil prices in the future? http://finance.yahoo.com/news/got-head-handed-warren-buffett-162922108.html Why couldn't he just be thinking airlines are better run now than in the past? By the way, he doesn...
by Geologist
Sat Feb 25, 2017 5:17 pm
Forum: Personal Finance (Not Investing)
Topic: How long to keep paper investment statements
Replies: 13
Views: 1139

Re: How long to keep paper investment statements

I agree that you need annual statements that cover any positions you still own. These need not be paper, but if all you have is paper, then you must retain them indefinitely.
by Geologist
Sat Feb 25, 2017 2:38 pm
Forum: Investing - Help with Personal Investments
Topic: VFIJX - GNMA Admiral - SEC Yield jumped?
Replies: 16
Views: 1002

Re: VFIJX - GNMA Admiral - SEC Yield jumped?

I own the GNMA fund in my IRA and I have no tax consequences. I assume that the professional managers are dealing with the changes in the market and therefore don't pay any attention to changes in the SEC yield (or the duration) in the short term, so I can't really give you any ideas about what spec...
by Geologist
Sat Feb 25, 2017 2:35 pm
Forum: Investing - Help with Personal Investments
Topic: "Borrow" $5500 from Emergency Fund to Qualify for Vanguard Admiral?
Replies: 34
Views: 4284

Re: "Borrow" $5500 from Emergency Fund to Qualify for Vanguard Admiral?

You can borrow money from your emergency fund if you like. Keep in mind, however, that the dollar difference in expenses for small accounts between Investor and Admiral shares is not significant (perhaps $9/year on a $9000 account, just below the size to shift to Admiral class shares). Consequently,...
by Geologist
Sat Feb 25, 2017 2:28 pm
Forum: Investing - Help with Personal Investments
Topic: VFIJX - GNMA Admiral - SEC Yield jumped?
Replies: 16
Views: 1002

Re: VFIJX - GNMA Admiral - SEC Yield jumped?

The duration of GNMA's are famously jumpy because of changing prepayment assumptions as yields change. I suppose this can happen to yields as well. Remember that mortgage yields went up relatively recently; this may have affected what is going on in the GNMA market.
by Geologist
Thu Feb 23, 2017 10:01 am
Forum: Investing - Theory, News & General
Topic: VTIAX now has 0.11% ER [Vanguard Total Int'l Stock, Admiral Class]
Replies: 43
Views: 4582

Re: VTIAX now has 0.11% ER

Good, so for every 1 million dollars you have in the fund, you will save an extra $100 per year (assuming no rounding). This supports mhc's estimate of how much sooner he can retire.
by Geologist
Wed Feb 22, 2017 8:44 pm
Forum: Investing - Help with Personal Investments
Topic: Open vanguard CD Order
Replies: 29
Views: 1646

Re: Open vanguard CD Order

2. Avoidance of auto-renewal trickery: The value of a brokered CD is deposited in your settlement fund at maturity. Most direct CDs are set up to renew automatically at maturity. The interest rate at the time of renewal may be much less than the original rate, and most banks give the investor only ...
by Geologist
Wed Feb 22, 2017 7:32 pm
Forum: Investing - Help with Personal Investments
Topic: Open vanguard CD Order
Replies: 29
Views: 1646

Re: Open vanguard CD Order

Why would one buy a brokered CD vs directly from the bank? 1. Convenience: You can hold CDs in the same brokerage account as your other investments. This is especially nice for IRAs, where you'd otherwise need to do custodian-to-custodian transfers when changing banks to get a good interest rate. 2...
by Geologist
Wed Feb 22, 2017 7:30 pm
Forum: Investing - Help with Personal Investments
Topic: Open vanguard CD Order
Replies: 29
Views: 1646

Re: Open vanguard CD Order

I agree with dm200 that all that has changed is the mechanics of the order. I just go about my business and the "order fills" and I get the CD on the settlement date. I'm not really sure why it changed, but it doesn't make any difference to me.
by Geologist
Mon Feb 20, 2017 8:36 am
Forum: Investing - Help with Personal Investments
Topic: Vanguard dividend info on 1099-B is different
Replies: 10
Views: 545

Re: Vanguard dividend info on 1099-B is different

Some dividends paid in January are taxable in 2016. There is another thread on this subject, but I don't have time to look for it now.
by Geologist
Thu Feb 16, 2017 10:21 pm
Forum: Investing - Theory, News & General
Topic: Flat or sublinear fund expense instead of percentage
Replies: 9
Views: 661

Re: Flat or sublinear fund expense instead of percentage

...It seems worth thinking about whether the fee could be one-time and not annual. Why would fund costs be one-time? You get a 1099 every year in a taxable account and a 5498 for an IRA. It costs money to produce those. Even in an index fund, someone has to see that the fund invests inflows and out...
by Geologist
Wed Feb 15, 2017 6:21 pm
Forum: Investing - Help with Personal Investments
Topic: Never-Ending Foreign Tax Credit Problem
Replies: 33
Views: 2503

Re: Never-Ending Foreign Tax Credit Problem

I imagine any VG investor with some foreign equity exposure may be experiencing the same problem I am. I also am having trouble understanding your problem especially when you express it as you do in this first sentence. I have "some foreign equity exposure" and I never even have to file F...
by Geologist
Sun Feb 12, 2017 9:06 pm
Forum: Investing - Help with Personal Investments
Topic: Should I pay Vanguard for "extra" advice?
Replies: 9
Views: 1230

Re: Should I pay Vanguard for "extra" advice?

I don't see that Vanguard wants to be paid twice for the same service. Managing and operating individual mutual funds is not the same as offering personal (customized) advice on a portfolio (meaning asset allocation) of multiple funds. Whether or not this advice is worth what they would charge for i...
by Geologist
Sun Feb 12, 2017 5:18 pm
Forum: Investing - Theory, News & General
Topic: LT capital gains tax
Replies: 8
Views: 726

Re: LT capital gains tax

I'm not sure the private school would take stock, but paying the tuition directly to the school avoids gift tax considerations.
by Geologist
Sun Feb 12, 2017 5:13 pm
Forum: Investing - Help with Personal Investments
Topic: Expense Ratio
Replies: 5
Views: 556

Re: Expense Ratio

I'm reasonably sure you do get the dividends from the underlying investments. A collective investment trust doesn't have to pay out dividends periodically; it can just include them in its total investments (and increase its NAV). Thus, the fact that it doesn't make distributions or appear to pay div...
by Geologist
Fri Feb 10, 2017 10:41 am
Forum: Investing - Help with Personal Investments
Topic: Four fund share classes for Vanguard Total Stock Market Index, yes there really are four.
Replies: 13
Views: 1290

Re: Four fund share classes for Vanguard Total Stock Market Index, yes there really are four.

Another thing to keep in mind is how much you are really saving by staying in the Institutional Plus vs. Admiral shares. The difference in expense ratio is $30/$100,000 of account per year. This is not really a great dollar difference. Beyond that, the reason companies get the various Institutional ...
by Geologist
Thu Feb 09, 2017 10:05 pm
Forum: Investing - Theory, News & General
Topic: Why don't stock prices go up on payday?
Replies: 43
Views: 3649

Re: Why don't stock prices go up on payday?

Another key factor is not everyone is buying the same thing with their pay. When I worked in a large private company, a non-trivial number of my colleagues were splitting half their 401k money into company stock and half into the stable value fund. The company stock was a Fortune 50 company, so the ...
by Geologist
Thu Feb 09, 2017 10:02 pm
Forum: Investing - Theory, News & General
Topic: Why don't stock prices go up on payday?
Replies: 43
Views: 3649

Re: Why don't stock prices go up on payday?

I am paid on the last business day of the month. Sometimes this is a Friday, but not usually. Having said that, there is a lot of other market transactions going on that in toto are very large. Don't assume that paydays are the only or largest event in the market, just because it is the largest to y...
by Geologist
Thu Feb 09, 2017 7:30 pm
Forum: Investing - Theory, News & General
Topic: Is Guam in Ohio? [Tax-exempt bond fund holding]
Replies: 37
Views: 2983

Re: Is Guam in Ohio?

If I had to guess, the federal exemption for all states for the territories was to expand the market for their municipal bonds. After all, how many people can there be to buy Guam munis if only Guam residents could purchase them as tax-free investments?
by Geologist
Mon Feb 06, 2017 7:15 pm
Forum: Investing - Help with Personal Investments
Topic: Vanguard Total Bond: Investor Shares vs ETF?
Replies: 3
Views: 311

Re: Vanguard Total Bond: Investor Shares vs ETF?

I don't see much to be gained by shifting to the ETF from Investor Shares. The dollar amount to be saved on an account of $5000 is about $5.50 per year. That really doesn't amount to much. If you like mutual funds rather than ETF's, might as well leave it where it is.
by Geologist
Sun Feb 05, 2017 5:42 pm
Forum: Personal Finance (Not Investing)
Topic: Keep a Local Bank?
Replies: 76
Views: 4631

Re: Keep a Local Bank?

I certainly find a safe deposit box necessary and you need a physical bank/credit union for that.

I don't often go to my credit union, but it has numerous branches across my state and I see many customers at the local ones as I drive by. Somebody finds physical branches useful.
by Geologist
Sun Feb 05, 2017 5:38 pm
Forum: Personal Finance (Not Investing)
Topic: Keep a Local Bank?
Replies: 76
Views: 4631

Re: Keep a Local Bank?

I have never needed a medallion signature guarantee. This must be a Vanguard thing. It is certainly not simply a Vanguard thing. As an example, I can direct you to non-Vanguard mutual fund redemption forms on the web that state that redemptions above a certain dollar figure require a medallion sign...
by Geologist
Sun Feb 05, 2017 3:00 pm
Forum: Investing - Theory, News & General
Topic: Vanguard Total Stock Index is not TOTAL?
Replies: 19
Views: 1901

Re: Vanguard Total Stock Index is not TOTAL?

The statutory prospectus says that the Total Stock Index samples the CRSP US Total Stock market Index on page 2. Page 3 does suggest there is a risk the sampling won't work, but suggests this risk is low.
by Geologist
Sun Feb 05, 2017 2:44 pm
Forum: Investing - Theory, News & General
Topic: Costs of the TSP? is it self-sustained?
Replies: 33
Views: 3204

Re: Costs of the TSP? is it self-sustained?

As for a model for pension systems, let me remind you that defined benefit pensions are operated administratively at the cost of the employer. The question in my mind is not if somehow an employer is "subsidizing" the pension system but to what extent the employer should be allowed to char...
by Geologist
Sun Feb 05, 2017 2:40 pm
Forum: Investing - Theory, News & General
Topic: Costs of the TSP? is it self-sustained?
Replies: 33
Views: 3204

Re: Costs of the TSP? is it self-sustained?

There is no question that there are private employers who pay the administrative costs of 401k plans. My former employer, a Fortune 50 company, does so. Thus, its S&P 500 collective investment trust operates at a cost of 1 basis point (0.01%) to the participating employees. The other investment ...
by Geologist
Sun Feb 05, 2017 9:56 am
Forum: Investing - Theory, News & General
Topic: TSP Expense Ratio jumps to 0.038%
Replies: 57
Views: 5444

Re: TSP Expense Ratio jumps to 0.038%

The ER has been 0.29%. Though it's still lower than anything else we have. This will make the decision to get completely out of TSP when DW retires (because of the limited withdrawal options) into Vanguard institutional that much easier. ONE basis point is what you consider significant?? If TSP isn...
by Geologist
Sun Feb 05, 2017 9:52 am
Forum: Investing - Theory, News & General
Topic: TSP Expense Ratio jumps to 0.038%
Replies: 57
Views: 5444

Re: TSP Expense Ratio jumps to 0.038%

The ER has been 0.29%. Though it's still lower than anything else we have. This will make the decision to get completely out of TSP when DW retires (because of the limited withdrawal options) into Vanguard institutional that much easier. I assume you meant 0.029% (not 0.29%), because the OP says it...
by Geologist
Sun Feb 05, 2017 9:49 am
Forum: Investing - Help with Personal Investments
Topic: Dodge & Cox Form 1099 Div is incorrect
Replies: 7
Views: 682

Re: Dodge & Cox Form 1099 Div is incorrect

At least the D&C web page shows both a ST cap gain and a LT cap gain distribution: https://www.dodgeandcox.com/performance_HD.asp But maybe this is one of those 95%+ of dividends were qualified, so 100% were qualified things? The ST cap gain is 4.8% of the total dividends plus ST capital gains,...

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