Search found 1000 matches

by Geologist
Sun Apr 23, 2017 4:49 pm
Forum: Investing - Help with Personal Investments
Topic: Rght Bond fund/s when interest rates rise?
Replies: 31
Views: 1951

Re: Rght Bond fund/s when interest rates rise?

If, and only if, the FFR becomes 3% in 4-5 years, a 5 year bond held to maturity outperforms a 10 year bond sold in 5 years, by over 1%. Using average spreads, average price ratios, etc.. So I guess some short term bonds or target date bond fund would be a small hedge against a actual FFR increase ...
by Geologist
Sun Apr 16, 2017 8:23 pm
Forum: Investing - Theory, News & General
Topic: Investors backing off their equity AA primarily due to 8-year bull market?
Replies: 56
Views: 4558

Re: Investors backing off their equity AA primarily due to 8-year bull market?

I haven't been following market news. Is there a growing trend of investors backing off their equity AA, stopping auto-investment in equity or even selling equity shares, primarily because of the 8-year bull market? Not because they are needing the money anytime soon. People could stop "auto-i...
by Geologist
Fri Apr 14, 2017 6:35 pm
Forum: Investing - Help with Personal Investments
Topic: How often are capital gains from Vanguard funds reinvested?
Replies: 31
Views: 1781

Re: How often are capital gains from Vanguard funds reinvested?

First, VTSMX *never* pays CGDs. Second, let's say AAPL goes up 10% next week. This results in VTSMX doing....... nothing. So a total stock market fund is the epitome of Unrealized Gains... It's still possible, though probably unlikely, for there to be capital gains within a total market fund like V...
by Geologist
Fri Apr 14, 2017 6:01 pm
Forum: Investing - Help with Personal Investments
Topic: How often are capital gains from Vanguard funds reinvested?
Replies: 31
Views: 1781

Re: How often are capital gains from Vanguard funds reinvested?

Wanted to clarify my post a bit better, with examples... Let's say I have $10,000 invested in VTSMX. Tomorrow, I see that the value of VTSMX has gone upto $10,500. Will that $500 get reinvested for additional stocks of VTSMX? I see online that there is an option to automatically reinvest dividends ...
by Geologist
Thu Apr 13, 2017 6:24 pm
Forum: Investing - Theory, News & General
Topic: Payout [how funds use proceeds when a holding is acquired]
Replies: 9
Views: 839

Re: Payout [how funds use proceeds when a holding is acquired]

Hi Slowmoney. You asked what happens to the capital gains. A mutual fund (either active or index fund) is required to distribute realized capital gains (net of realized capital losses) to owners of the fund at least once a year. So, no, the fund would not be able to distribute the gains among other...
by Geologist
Thu Apr 13, 2017 6:07 pm
Forum: Personal Finance (Not Investing)
Topic: Should I take 6% penalty for excess Roth IRA contribution since I had significant earnings?
Replies: 77
Views: 5023

Re: Should I take 6% penalty for excess Roth IRA contribution since I had significant earnings?

As I understand it, the 6% excise tax is not a one-time penalty for your excess contribution, but an annual assessment. That is, you will owe 6% every year until you remove the excess contribution. I'm also not sure how you could have contributed $5500 in 2016 and managed to have $15,000 in earnings...
by Geologist
Wed Apr 12, 2017 9:44 am
Forum: Personal Finance (Not Investing)
Topic: Legality of renters posting reviews of a condominium complex?
Replies: 82
Views: 3498

Re: Legality of renters posting reviews of a condominium complex?

But assuming that's not the case and these are just disgruntled tenants, what law do you think would prevent them from posting their opinions to website intended for that very purpose? The issue is they are not owners, just renters. A condominium serves it's owners , not renters. So I am confused w...
by Geologist
Tue Apr 11, 2017 6:52 pm
Forum: Personal Finance (Not Investing)
Topic: Dollar amount of fees
Replies: 5
Views: 511

Re: Dollar amount of fees

The expense ratio of mutual funds themselves are deducted daily from the Net Asset Value of the fund. There isn't a deduction from your account per se. That's why you don't see anything directly and why there is nothing for the shareholder to deduct on their taxes. As has already been mentioned, sin...
by Geologist
Sat Apr 08, 2017 7:50 pm
Forum: Personal Finance (Not Investing)
Topic: Vanguard Federal Money Market Fund
Replies: 19
Views: 4436

Re: Vanguard Federal Money Market Fund

I was just charged $118.00 for holding funds in the Vanguard Federal Money Market Fund. I will call on Monday to find out why, but I am really annoyed and feel mislead. I was forced to transfer my funds from their Prime MM account because of some regulations but was unaware of any fees. The appeara...
by Geologist
Sat Apr 08, 2017 4:07 pm
Forum: Personal Finance (Not Investing)
Topic: What are the mechanics of paying my expense ratio?
Replies: 18
Views: 1201

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

[ My understanding is that the expense ration charged looks ahead (into the future) and not back (into the past). If I am not correct, then could you cite something as a reference? Here is a quote from a footnote in the Wellington annual report (p. 11): "The expense ratios shown are from the p...
by Geologist
Sat Apr 08, 2017 4:03 pm
Forum: Personal Finance (Not Investing)
Topic: What are the mechanics of paying my expense ratio?
Replies: 18
Views: 1201

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

The Mutual Fund/ETF management company can accrue expenses daily whether they find it convenient to actually take cash daily or not. Some days it would not be convenient to get the cash. For the Wellington Fund Investor Shares (I just happen to have the 2016 annual report handy), based on 2016 actua...
by Geologist
Fri Apr 07, 2017 6:34 pm
Forum: Personal Finance (Not Investing)
Topic: What are the mechanics of paying my expense ratio?
Replies: 18
Views: 1201

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

The expense ratio of mutual funds or ETF's themselves are deducted daily from the Net Asset Value of the fund. There isn't a deduction from your account per se. That's why you don't see anything directly.

Now, if your 401(k) assesses its own fees, how they are deducted may be another matter.
by Geologist
Tue Apr 04, 2017 7:50 am
Forum: Investing - Help with Personal Investments
Topic: Vanguard automatic Roth investment stops pennies short of maximum yearly contribution?
Replies: 15
Views: 658

Re: Vanguard automatic Roth investment stops pennies short of maximum yearly contribution?

Would an automatic investment of $550/month automatically stop after 10 months at the limit? If so, that would solve your problem. You probably would have to contact Vanguard to get the answer to that question.
by Geologist
Mon Apr 03, 2017 7:23 pm
Forum: Personal Finance (Not Investing)
Topic: W2 income tax withheld is different then pay stub compilation
Replies: 9
Views: 627

Re: W2 income tax withheld is different then pay stub compilation

I would agree with Katietsu that "complain" is the wrong verb. I myself have thought there were errors in my W-2 (although not in the income tax withheld). Upon talking with my payroll office, I found out that my summation from paystubs wasn't right. It is therefore fine to inquire about h...
by Geologist
Sun Apr 02, 2017 7:38 pm
Forum: Personal Finance (Not Investing)
Topic: Manufactured Spending - is it illegal, or otherwise "bad?"
Replies: 71
Views: 5548

Re: Manufactured Spending - is it illegal, or otherwise "bad?"

The Capital One Quicksilver card pays a $100 bonus for $500 of purchases in the first three months. ............................. Thoughts? You have trouble charging $500 to a CC in 3 months? Seriously? Yeah, I don't get that either. We run thousands a month through our primary rewards card, virtua...
by Geologist
Sun Apr 02, 2017 6:22 pm
Forum: Personal Finance (Not Investing)
Topic: Manufactured Spending - is it illegal, or otherwise "bad?"
Replies: 71
Views: 5548

Re: Manufactured Spending - is it illegal, or otherwise "bad?"

The Capital One Quicksilver card pays a $100 bonus for $500 of purchases in the first three months. ............................. Thoughts? You have trouble charging $500 to a CC in 3 months? Seriously? Yeah, I don't get that either. We run thousands a month through our primary rewards card, virtua...
by Geologist
Sun Apr 02, 2017 6:08 pm
Forum: Investing - Theory, News & General
Topic: Some 'hints' about brokered CDs
Replies: 15
Views: 1785

Re: Some 'hints' about brokered CDs

Just curious, if I get a bunch of brokered CD's from different banks through VG or Schwab, will I get separate 1099-INT's from each one? If you buy from Vanguard, you will get all the interest summarized on your Vanguard Brokerage 1099. The redemptions will show up there too; if you buy at issue, t...
by Geologist
Sat Apr 01, 2017 8:35 pm
Forum: Investing - Help with Personal Investments
Topic: Trying to understand something - VPAIX in Nov. 2016? [Vanguard PA Long-term tax-exempt]
Replies: 4
Views: 298

Re: Trying to understand something - VPAIX in Nov. 2016? [Vanguard PA Long-term tax-exempt]

You should notice that the same effect happened generally in long-term and even intermediate municipal bonds (see, for example, the Vanguard Long-Term or Intermediate Tax-Exempt Funds, which are multi-state). This was a market effect for muncipals as others have pointed out. Sometimes you can figure...
by Geologist
Fri Mar 31, 2017 6:07 pm
Forum: Investing - Help with Personal Investments
Topic: Sleep well or not ? [Vanguard Intermediate-Term Tax-Exempt]
Replies: 25
Views: 3188

Re: Sleep well or not ? [Vanguard Intermediate-Term Tax-Exempt]

I have bought shares as low as about $12.80 so I'm not concerned about the fluctuations of NAV that are likely. If it should fall, then this creates a tax loss harvesting opportunity as well.
by Geologist
Fri Mar 31, 2017 7:38 am
Forum: Investing - Help with Personal Investments
Topic: Schwab offering .03% ER
Replies: 75
Views: 3050

Re: Schwab offering .03% ER

These differences in expense ratio on small account sizes (like $3000) are inconsequential in dollar terms. They only make a difference on large account sizes (in which case you should compare the Vanguard Admiral share class to the Schwab) and even then you need hundreds of thousands of dollars in ...
by Geologist
Mon Mar 27, 2017 7:51 pm
Forum: Investing - Theory, News & General
Topic: Why are international and US stocks down today?
Replies: 53
Views: 3563

Re: Why are international and US stocks down today?

How come no one mentioned sunspots? My problem is that I can never remember how it is that sunspots are supposed to affect the market, but I know they do it.
by Geologist
Sun Mar 26, 2017 2:22 pm
Forum: Personal Finance (Not Investing)
Topic: TurboTax 101 Question
Replies: 3
Views: 411

Re: TurboTax 101 Question

Presumably your tax info from last year is a file with an extension (e.g., tax2105). Just copy to your new computer (via flash drive for example). This will work even if the old computer is a PC and the new computer is a Mac.
by Geologist
Sun Mar 26, 2017 1:48 pm
Forum: Personal Finance (Not Investing)
Topic: Emergency Fund...Savings, Money Market, or CD?
Replies: 22
Views: 2571

Re: Emergency Fund...Savings, Money Market, or CD?

With our emergency fund, I don't go all-in on one vehicle. I keep a portion always in cash (if I needed it like "right now"). I keep the rest in CD ladders (3-month intervals). Thus "cash" is coming free periodically, and I can use it then if needed or reinvest in another tranch...
by Geologist
Sat Mar 25, 2017 5:59 pm
Forum: Investing - Theory, News & General
Topic: Hussman doesn't view me an a true investor
Replies: 20
Views: 1807

Re: Hussman doesn't view me an a true investor

Are you sure his name Is Hussman and not Humpty Dumpty? Humpty Dumpty (at least according to Lewis Carroll) just changed the meanings of words however he liked to suit himself. Why we should care about this change of definition, as nisiprius points out, I don't know.
by Geologist
Sat Mar 25, 2017 5:42 pm
Forum: Investing - Theory, News & General
Topic: Bonds held in a mutual fund
Replies: 4
Views: 276

Re: Bonds held in a mutual fund

For example, in the annual report for 2014 (the most recent one on my computer), cash and Treasuries were 0.8% of all assets, practically all in the Vanguard Market Liquidity Fund (Treasury and agency obligations were 133 million or 0.0% rounded to the nearest tenth of a percent).
by Geologist
Sat Mar 25, 2017 5:38 pm
Forum: Investing - Theory, News & General
Topic: Bonds held in a mutual fund
Replies: 4
Views: 276

Re: Bonds held in a mutual fund

Vanguard sends out a sheet with the percentage of income from U.S. Treasury obligations (and percentage of assets in Treasuries) for each fund for which this is relevant with the 1099 tax forms every year. No doubt this sheet can also be downloaded from the website, but I haven't looked just recentl...
by Geologist
Sat Mar 25, 2017 4:06 pm
Forum: Personal Finance (Not Investing)
Topic: How do Taxes work with Mutual funds.
Replies: 38
Views: 2387

Re: How do Taxes work with Mutual funds.

I think that capital gains can also be reported on 1099-DIV - and someone please correct me if I'm wrong :shock: In my Vanguard taxable account, my form 1099-DIV (Dividends and Distributions) includes ordinary dividends (box 1a), qualified dividends (box 1b), and capital gain distributions (box 2a)...
by Geologist
Sat Mar 25, 2017 4:03 pm
Forum: Personal Finance (Not Investing)
Topic: Form 1099-B Gain or loss "(not reported to the IRS)"
Replies: 7
Views: 414

Re: Form 1099-B Gain or loss "(not reported to the IRS)"

Did you purchase these shares before January 1, 2012. That is the date on which shares became "covered" and T Rowe Price would have been required to report purchase price (and therefore cost basis). Before then, the shares were non-covered and they don't have to report. (What records they ...
by Geologist
Sat Mar 25, 2017 3:52 pm
Forum: Investing - Theory, News & General
Topic: So why exactly is everyone gloomy about bonds?
Replies: 34
Views: 4294

Re: So why exactly is everyone gloomy about bonds?

For a community that insists upon the unpredictability of the market as one of its central tenets, there does seem to be a consensus that "the bull run in bonds is over", "expected real return is zero", and such like. If my perception is accurate... Your perception is not accura...
by Geologist
Sat Mar 25, 2017 3:49 pm
Forum: Investing - Theory, News & General
Topic: S&P Index Funds at Vanguard
Replies: 8
Views: 1209

Re: S&P Index Funds at Vanguard

Well, Vanguard does have a retail S&P Small Cap 600 Index Fund (nearly) in the form of the Tax-Managed Small Cap Fund. It invests in the S&P Small Cap 600 Index with small deviations permitted to improve tax efficiency. The r-squared over the last 3 years with that index is 1.00 with a beta ...
by Geologist
Sat Mar 25, 2017 3:41 pm
Forum: Personal Finance (Not Investing)
Topic: How do Taxes work with Mutual funds.
Replies: 38
Views: 2387

Re: How do Taxes work with Mutual funds.

For capital gains, "short term" is considered to be one year or less, "long term" is anything longer than one year. This applies to sale of individual stocks and mutual funds. Capital gain distributions from mutual funds are always considered to be long-term, even if you held yo...
by Geologist
Sat Mar 25, 2017 3:35 pm
Forum: Personal Finance (Not Investing)
Topic: How do Taxes work with Mutual funds.
Replies: 38
Views: 2387

Re: How do Taxes work with Mutual funds.

I think that capital gains can also be reported on 1099-DIV - and someone please correct me if I'm wrong :shock: In my Vanguard taxable account, my form 1099-DIV (Dividends and Distributions) includes ordinary dividends (box 1a), qualified dividends (box 1b), and capital gain distributions (box 2a)...
by Geologist
Sat Mar 25, 2017 11:21 am
Forum: Personal Finance (Not Investing)
Topic: Estate Tax Liabilities
Replies: 8
Views: 755

Re: Estate Tax Liabilities

I am not a lawyer, but it doesn't sound like good advice to me. From what I understand, his IRA will go to a beneficiary outside of his estate--make sure a beneficiary is named on the account. Just one man's opinion. You're wrong that an IRA is not part of the estate for estate tax/inheritance tax ...
by Geologist
Thu Mar 23, 2017 8:47 pm
Forum: Investing - Theory, News & General
Topic: Why nobody talk about cash allocation ?
Replies: 17
Views: 2080

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: 33
Views: 2792

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: 500

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: 556

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: 3996

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: 700

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: 1157

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: 489

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: 489

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: 478

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: 1581

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: 2289

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: 2279

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: 1581

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: 459

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: 1581

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: 1182

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...

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