Search found 16252 matches

by grabiner
Thu Feb 11, 2016 11:50 pm
Forum: Investing - Theory, News & General
Topic: Buying the Dividend
Replies: 12
Views: 1128

Re: Buying the Dividend

That's annual so you'd divide the 2% by four. Total Stock dividends are divided pretty evenly unlike other funds. And that is low enough that it isn't worth waiting. If you plan to invest $10,000 in a fund, you expect to get a $50 dividend, which will lead to $8 in tax. Staying out of the market fo...
by grabiner
Thu Feb 11, 2016 11:45 pm
Forum: Investing - Theory, News & General
Topic: Bogleheads TLH indicator for market timing
Replies: 3
Views: 510

Re: Bogleheads TLH indicator for market timing

Past performance is not an indication of future results, and TLH articles are a measure of past performance. If the market is down 10% from its peak, most taxable investors who make regular investments have losses to harvest. TLH discussions will go away if the market rises, or even if it is flat (a...
by grabiner
Thu Feb 11, 2016 11:38 pm
Forum: Investing - Theory, News & General
Topic: Why Aren't Long Term Treasuries Recommended Instead of Total Bond Market?
Replies: 43
Views: 3297

Re: Why Aren't Long Term Treasuries Recommended Instead of Total Bond Market?

The problem with long-term Treasuries is that individual investors are not adequately rewarded for the risk. Normally, investors demand higher expected returns for higher-risk investments. However, pension funds and insurance companies have long-term fixed-dollar liabilities, and thus investing in l...
by grabiner
Thu Feb 11, 2016 11:31 pm
Forum: Investing - Help with Personal Investments
Topic: Selling ETF Using A Limit Order
Replies: 10
Views: 370

Re: Selling ETF Using A Limit Order

^Thought about that option too, but picked up the lot with a gain within the last 30 days which I believe would qualify as a wash. Let me know if I'm mistaken. Yes, this is correct. If you sell the ETF, and don't sell the lot you bought within the last 30 days, you will have a wash sale. (And as a ...
by grabiner
Thu Feb 11, 2016 11:21 pm
Forum: Investing - Help with Personal Investments
Topic: Time to tax loss harvest???
Replies: 9
Views: 702

Re: Time to tax loss harvest???

-- If I understand, I will need to wait for 30 days after my last buy-in into a fund before selling it right? Not necessarily. If sell everything, you don't have to wait to avoid a wash sale. Or even if you sell the shares you bought within the last 30 days. You might as well sell these shares even...
by grabiner
Thu Feb 11, 2016 11:19 pm
Forum: Investing - Help with Personal Investments
Topic: Tracking lots for calculating capital gains & tax harvesting
Replies: 8
Views: 367

Re: Tracking lots for calculating capital gains & tax harvesting

I use a spreadsheet, which also lists my non-covered lots, so that I can see whether any of them have losses. Vanguard gives only an average cost basis for non-covered mutual fund shares, which is not useful if you sell using specific ID.
by grabiner
Thu Feb 11, 2016 11:17 pm
Forum: Investing - Help with Personal Investments
Topic: Seeking Help moving taxable VASGX to Roth TSP
Replies: 1
Views: 147

Re: Seeking Help moving taxable VASGX to Roth TSP

2. Does is make sense to withdraw about $3000 a month from my taxable to live on for the month while I put $3000 of my paycheck into my TSP? I would do this for about 4 months until I reach the $17,500 max for the year and repeat until I empty my taxable account This almost makes sense, assuming yo...
by grabiner
Thu Feb 11, 2016 11:03 pm
Forum: Investing - Help with Personal Investments
Topic: Lump sum screws up AA
Replies: 9
Views: 579

Re: Lump sum screws up AA

This looks like a situation in which you will go past a rebalancing band, and since you can fix the issue with no tax cost, you might as well do it. With a 60/40 target, if the stock investment takes you over 65% stock, you should either sell stock to buy bonds in your 401(k) or put some of the bonu...
by grabiner
Thu Feb 11, 2016 8:54 pm
Forum: Personal Finance (Not Investing)
Topic: HSA Bank Tax Issue - "Participant" vs Employer contributions
Replies: 14
Views: 681

Re: HSA Bank Tax Issue - "Participant" vs Employer contributions

Update: We heard back from my wife's employer. They said: "You have not contributed anything towards your HSA personally (employee contribution). [Company] contributed $2000 towards your HSA account in 2015. However, this money was not processed through your payroll, which is why it does not a...
by grabiner
Thu Feb 11, 2016 8:52 pm
Forum: Investing - Theory, News & General
Topic: Total Bond Market > Tax-Exempt Bond Fund?
Replies: 39
Views: 2236

Re: Total Bond Market > Tax-Exempt Bond Fund?

Seems to me that one should "stay the course." Ignoring today's yields, the rule of thumb should still stand, where 25% federal tax bracket or higher should be investing in municipal bonds. Correct? I don't think this is correct in the way you think. Here's why. Back several years ago the...
by grabiner
Thu Feb 11, 2016 8:47 pm
Forum: Personal Finance (Not Investing)
Topic: Trad IRA---> Roth
Replies: 37
Views: 1678

Re: Trad IRA---> Roth

So does a decreasing stock market affect whether or not he should recharacterize now? Are the contributions deductible? If they are, and have declined in value, then recharacterizing costs more than converting. If you contribute $5500 and deduct it, and the value falls to $5000, then you can conver...
by grabiner
Thu Feb 11, 2016 8:37 pm
Forum: Investing - Help with Personal Investments
Topic: Are FA fears of ETF market (SEC comments) valid?
Replies: 18
Views: 1266

Re: Are FA fears of ETF market (SEC comments) valid?

If a fund has a 0.5% management fee and a 1% 12b(1) fee (typical for C shares), your returns will be 1.5% less than the returns of the fund's investment. Unless the FA is depositing 1% of the fund value into your account, or paying you 1% of the value, then you are paying the fees. And if he is reb...
by grabiner
Wed Feb 10, 2016 11:04 pm
Forum: Investing - Theory, News & General
Topic: World stocks officially reach bear market territory
Replies: 25
Views: 3164

Re: World stocks officially reach bear market territory

Vanguard World Stock Index reached a high of 26.25 on 5/21/2015. On 2/09/2016 it reached 21.03 to (barely) hit the magic 20% loss from previous highs to qualify as a "bear" market. 80% of 26.25 is 21.00; the decline is actually 19.89%. And even with rounding, the actual loss is not 20% be...
by grabiner
Wed Feb 10, 2016 10:21 pm
Forum: Investing - Theory, News & General
Topic: Total Bond Market > Tax-Exempt Bond Fund?
Replies: 39
Views: 2236

Re: Total Bond Market > Tax-Exempt Bond Fund?

Grabiner: Thank you for your reply. For someone in the 28% income-tax bracket, in a taxable account would you recommend (taxable) Total Bond Market Index Fund or Vanguard Tax-Exempt Intermediate-Term Bond Fund (with its now lower after-tax yield)? Why? Thank you and best wishes. Taylor I think this...
by grabiner
Wed Feb 10, 2016 9:34 pm
Forum: Investing - Theory, News & General
Topic: Total Bond Market > Tax-Exempt Bond Fund?
Replies: 39
Views: 2236

Re: Total Bond Market > Tax-Exempt Bond Fund?

For someone in the 28% income-tax bracket, in a taxable account would you recommend (taxable) Total Bond Market Index Fund or Vanguard Tax-Exempt Intermediate-Term Bond Fund (with its now lower after-tax yield)? Why? Since I believe in the efficiency of the market, I would assume that bond traders ...
by grabiner
Wed Feb 10, 2016 8:58 pm
Forum: Investing - Theory, News & General
Topic: Total Bond Market > Tax-Exempt Bond Fund?
Replies: 39
Views: 2236

Re: Total Bond Market > Tax-Exempt Bond Fund?

Looking at the math, it looks like the Vanguard Intermediate-Term Tax-Exempt bond fund has a yield of 1.39%. In a 28% federal tax bracket, the equivalent is 1.93%. The Total Bond Market fund crushes that with a yield of 2.30% . But even if I do the math for a 35% tax bracket, that still only gives ...
by grabiner
Wed Feb 10, 2016 8:48 pm
Forum: Investing - Help with Personal Investments
Topic: VYM ETF
Replies: 8
Views: 474

Re: VYM ETF

VYM is perfectly good. You may not want to put all your money in it, but it's perfectly good. Slightly more risky than bonds, but long term it should slightly out-perform them. "Slightly" is a serious understatement; look at a chart. In 2007-2009, this ETF lost 55% of its value (even incl...
by grabiner
Wed Feb 10, 2016 8:44 pm
Forum: Investing - Help with Personal Investments
Topic: Tax Loss Harvesting: How do you do it in practice?
Replies: 64
Views: 6537

Re: Tax Loss Harvesting: How do you do it in practice?

Assuming the 25% fed tax bracket. Is it better to have a smaller TLH and larger QDI (assuming 2 is true), or a larger TLH and no QDI (assuming the advice in 1 is true when we want to maximize a capital loss)? Does the logic change as our tax bracket moves up/down? This depends on the benefit you wi...
by grabiner
Wed Feb 10, 2016 8:34 pm
Forum: Investing - Help with Personal Investments
Topic: Question about Vanguard frequent traders and automated investing
Replies: 9
Views: 542

Re: Question about Vanguard frequent traders and automated investing

Since this is a taxable account, you don't want to do your proposed transaction anyway, as there will be a tax cost. When you sold Total Stock Market, you presumably had a capital loss, which you will be able to deduct from your 2016 taxable income. If you buy back the fund within 30 days of selling...
by grabiner
Wed Feb 10, 2016 8:27 pm
Forum: Personal Finance (Not Investing)
Topic: Trad IRA---> Roth
Replies: 37
Views: 1678

Re: Trad IRA---> Roth

The rep is correct here. Suppose you have $5500 in your IRA already when you make a new $5500 contribution, so that you now have $11,000. The market goes up, and you have $12,000 total when you decide to recharacterize. There is no way for Vanguard to determine which dollars are new and which are o...
by grabiner
Wed Feb 10, 2016 12:10 am
Forum: Personal Finance (Not Investing)
Topic: HSA Bank Tax Issue - "Participant" vs Employer contributions
Replies: 14
Views: 681

Re: HSA Bank Tax Issue - "Participant" vs Employer contributions

If your health plan makes a contribution to the HSA, this might not make it onto your W-2 as an "employer" contribution. For example, the US government works this way, because you can sign up for a government HDHP whether or not you are eligible for an HSA. Thus the government payroll offi...
by grabiner
Wed Feb 10, 2016 12:05 am
Forum: Personal Finance (Not Investing)
Topic: Trad IRA---> Roth
Replies: 37
Views: 1678

Re: Trad IRA---> Roth

So my son called Vanguard to set up his new Roth account. That was done and rep told him he was going to process the recharacterization of the TIRA, which will fund the Roth account. Hung up. Rep calls back and says son may not get full amount put into the Roth because they must look at his other T...
by grabiner
Tue Feb 09, 2016 11:52 pm
Forum: Investing - Theory, News & General
Topic: My TLH experience with ETFs
Replies: 3
Views: 458

Re: My TLH experience with ETFs

It helps to use very liquid ETFs like those that you are using. Others using VSS are not so happy with the buy/sell spreads they see. I allow half an hour to buy and sell VSS and other high-spread ETFs. Being patient allows you to wait for the spread to narrow before trading, or put a limit order i...
by grabiner
Tue Feb 09, 2016 11:45 pm
Forum: Investing - Theory, News & General
Topic: Non deduct. IRA as emergency fund tier?
Replies: 7
Views: 491

Re: Non deduct. IRA as emergency fund tier?

While setting up my backdoor Roths, I started thinking about why non deduct. IRAs are not recommended more for fixed income/emergency funds for high income earners? You can get your original post tax contribution back at no penalty. The money grows tax deferred so there is a chance that you will pa...
by grabiner
Tue Feb 09, 2016 11:41 pm
Forum: Investing - Theory, News & General
Topic: VSS Spreads and TLH [FTSE Small Cap ex-US and Tax Loss Harvesting]
Replies: 29
Views: 1275

Re: VSS Spreads and TLH [FTSE Small Cap ex-US and Tax Loss Harvesting]

I've been looking to do some TLH on VSS (FTSE Small Cap ex-US). However, I haven't executed the trade because of both the bid ask spread and the discount to NAV. Currently the bid ask spread is about 15bps and the discount to NAV is 1%. Any ideas on both why the spread is so wide and the NAV discou...
by grabiner
Tue Feb 09, 2016 11:32 pm
Forum: Investing - Help with Personal Investments
Topic: An advantage of merging Vanguard accounts
Replies: 5
Views: 660

An advantage of merging Vanguard accounts

I merged my Vanguard mutual fund and brokerage accounts today, and noticed a minor advantage: it is now possible to sell a stock or ETF, and buy a Vanguard fund with the unsettled funds. Previously, you had to sell in the brokerage account, then wait three days for settlement, and then buy the mutua...
by grabiner
Tue Feb 09, 2016 11:21 pm
Forum: Investing - Help with Personal Investments
Topic: Are FA fears of ETF market (SEC comments) valid?
Replies: 18
Views: 1266

Re: Are FA fears of ETF market (SEC comments) valid?

Question 1) This FA put me in C class funds but also says he's paid the annual fees out of his pocket, so they don't figure in to my expenses, so the ER isn't really that high and that these funds are the exception to the rule that active management doesn't beat the market indexes. If a fund has a ...
by grabiner
Tue Feb 09, 2016 11:10 pm
Forum: Investing - Help with Personal Investments
Topic: Avoiding wash sale
Replies: 4
Views: 246

Re: Avoiding wash sale

Welcome to the forum! This would not be a wash sale. The wash sale rule says that it applies if you sell securities for a loss, and buy the same (or substantially identical) securities within 30 days as a replacement. If you sell A and buy B, and then sell B within 30 days, you can't have a replacem...
by grabiner
Tue Feb 09, 2016 11:07 pm
Forum: Investing - Help with Personal Investments
Topic: HSA investment question
Replies: 6
Views: 415

Re: HSA investment question

If you are using the HSA for current medical expenses, you should keep one year's deductible in cash, or possibly one year's out-of-pocket maximum. Beyond that, it makes sense to invest the HSA as if it were part of your IRA, since both will provide retirement income. If you aren't using the HSA for...
by grabiner
Tue Feb 09, 2016 11:05 pm
Forum: Investing - Help with Personal Investments
Topic: TLH: Just down lots or all? Does it matter?
Replies: 14
Views: 1041

Re: TLH: Just down lots or all? Does it matter?

If you are interested in getting rid of a fund, selling your entire holding for a small gain makes sense, particularly when you have losses that more than offset the gain. The simplicity may be worth more than the trivial tax cost.
by grabiner
Tue Feb 09, 2016 11:02 pm
Forum: Investing - Help with Personal Investments
Topic: Mid-seven figure portfolio--help?
Replies: 18
Views: 3245

Re: Mid-seven figure portfolio--help?

Vanguard Total Bond Index—11% Vanguard CA IT Tax-Exempt –7% What is your federal tax bracket? One of these two funds is probably wrong, but I'm not sure which one. If you are in a high bracket, you want to go all-muni. If you don't want too much in CA, you could use Limited-Term Tax-Exempt and CA L...
by grabiner
Tue Feb 09, 2016 10:57 pm
Forum: Investing - Help with Personal Investments
Topic: If I open a 2015 Roth IRA and put $5500 into it, does this need to be included on 2015 Taxes?
Replies: 7
Views: 805

Re: If I open a 2015 Roth IRA and put $5500 into it, does this need to be included on 2015 Taxes?

If your income is on the low side, you might be eligible for the Savers Credit, Form 8880. Form 8880 asks for your Roth and other IRA contributions on line 1. If you use a tax program it should ask you about all your IRA contributions and then determine from your total AGI if you are eligible for F...
by grabiner
Tue Feb 09, 2016 10:51 pm
Forum: Investing - Help with Personal Investments
Topic: Unbalanced 401k contributions to avoid high-fee bond option?
Replies: 4
Views: 319

Re: Unbalanced 401k contributions to avoid high-fee bond option?

I would suggest using the same criteria as for rebalancing. If you use a 5/25 rule for rebalancing, this means that you don't really care how your asset allocation drifts because of market movements if no asset class is off by more than 5% of your portfolio or 25% of its own target; if things go fur...
by grabiner
Tue Feb 09, 2016 10:39 pm
Forum: Investing - Help with Personal Investments
Topic: Move to another house after 10 months??
Replies: 33
Views: 2129

Re: Move to another house after 10 months??

Understand closing costs are sunk costs, but ideally in 5-7 years our current house would sell for more and we could get the closing costs back. Or the housing market could crash again, right? This is irrelevant, because you are moving from one house to another house. If house prices rise, both you...
by grabiner
Tue Feb 09, 2016 10:35 pm
Forum: Personal Finance (Not Investing)
Topic: Flagship Investor with 700 credit score ?
Replies: 42
Views: 5157

Re: Flagship Investor with 700 credit score ?

The only thing I can think of is 1 or 2 years ago I had very unreasonable tenant who wanted to break lease after 2 months of renting. Home in question has been rented with no problems for 20 years. The only reason I rent it is because it is grandfathered as far as zoning and it pays 1/2 of tax bill...
by grabiner
Mon Feb 08, 2016 6:15 pm
Forum: Investing - Theory, News & General
Topic: Confused by Wiki Advice on HSA Spending
Replies: 29
Views: 4106

Re: Confused by Wiki Advice on HSA Spending

grabiner, I am new to the forum. I got an HSA account this year and I am trying to understand how to get the most out of it. Welcome! After reading about it, I came up with the following way of thinking about paying for a current medical expense M. in case when Roth IRA or other tax-advantaged acco...
by grabiner
Sun Feb 07, 2016 11:10 pm
Forum: Personal Finance (Not Investing)
Topic: Health Savings Accounts: Factual Errors in Wiki
Replies: 23
Views: 1662

Re: Health Savings Accounts: Factual Errors in Wiki

Section 1.2 State taxation: besides CA, NJ and Al taxing both contributions and earnings, two states without personal income tax, but tax interest and dividends above certain amounts, tax earnings on HSAs: New Hampshire and Tennessee. Not a big deal unless you live in those states; I do not so some...
by grabiner
Sun Feb 07, 2016 10:43 pm
Forum: Personal Finance (Not Investing)
Topic: Flagship Investor with 700 credit score ?
Replies: 42
Views: 5157

Re: Flagship Investor with 700 credit score ?

I get my credit score from both Credit Karma and American Express. Both say I have a score of about 830. Tho one area I am dinged according to Credit Karma is that I don't have enough credit accounts open. If the OP clicks on the link on Credit Karma: " Check out your Credit Factors," NC ...
by grabiner
Sat Feb 06, 2016 10:29 pm
Forum: Investing - Help with Personal Investments
Topic: Rebalancing without selling
Replies: 15
Views: 1121

Re: Rebalancing without selling

Using a spreadsheet to maintain a portfolio has links to several spreadsheets that people use for asset allocation. Since my new investments are small relative to my portfolio size, I just make them in whatever asset class is the most underweighted; if I am 2% underweight in emerging markets, 1% un...
by grabiner
Sat Feb 06, 2016 8:40 pm
Forum: Investing - Help with Personal Investments
Topic: when is the right time to do a planned shift in AA
Replies: 8
Views: 668

Re: when is the right time to do a planned shift in AA

If you are switching permanently to a more conservative allocation, this presumably means that your risk tolerance has decreased, or your current portfolio is riskier than you want. Therefore, you should make the switch immediately; there is no point in taking more risk than you need.
by grabiner
Sat Feb 06, 2016 8:28 pm
Forum: Investing - Help with Personal Investments
Topic: Pension options vs. Term Life policy
Replies: 15
Views: 1051

Re: Pension options vs. Term Life policy

How old is your beneficiary. and does the survivor option on the pension adjust for this? By taking the survivor annuity, you are effectively buying life insurance on yourself with the reduced payment, rather than applying separately. I would guess that, in an average situation, you would expect to ...
by grabiner
Fri Feb 05, 2016 10:38 pm
Forum: Personal Finance (Not Investing)
Topic: Paying off investment mortgage
Replies: 4
Views: 496

Re: Paying off investment mortgage

Welcome to the forum! I would like to pay off the rent house we own and save the 4.5% interest but my wife thinks it's a bad idea. Is it better to sit on an emergency fund or pay off the mortgage? You need to have an emergency fund, even though it costs you something to keep the money in the bank; t...
by grabiner
Fri Feb 05, 2016 10:33 pm
Forum: Personal Finance (Not Investing)
Topic: Flagship Investor with 700 credit score ?
Replies: 42
Views: 5157

Re: Flagship Investor with 700 credit score ?

If you want to know why your score is low, get a paid score with reason codes. From what you say, I would guess that the main reason your score is low will be "Too few open accounts" or "Too few total accounts"; it sounds like you have only one card. Even if there are no plans to...
by grabiner
Fri Feb 05, 2016 10:18 pm
Forum: Personal Finance (Not Investing)
Topic: HELOC or Buy Next Car
Replies: 13
Views: 1098

Re: HELOC or Buy Next Car

opriskguy wrote:The heloc is at prime during the draw period, which is another 7 years. After that there is a 30 year repayment schedule.


That gives it a 7-year duration, so borrowing on the HELOC is equivalent to selling an intermediate-term bond, not a long-term bond.
by grabiner
Fri Feb 05, 2016 10:17 pm
Forum: Investing - Help with Personal Investments
Topic: TLH timing question
Replies: 15
Views: 929

Re: TLH timing question

What would you say to someone who holds VWO and VSS in rIRA and VSTAX and VTIAX in taxable? Yes. I am that person. All four of these are fine in taxable, and I wouldn't worry much about which two you hold in the IRA; keep things unchanged. Emerging Markets Index (VWO) is probably the least tax-effi...
by grabiner
Thu Feb 04, 2016 10:34 pm
Forum: Investing - Help with Personal Investments
Topic: TLH timing question
Replies: 15
Views: 929

Re: TLH timing question

VINEX (International Explorer) is not a good fund to hold in a taxable account; it generates a lot of taxable capital gains. Thus, if you swap for FTSE All-World Ex-US Small-Cap (I prefer the ETF class VSS over the fund, because it is less expensive), you may want to stay in that fund permanently. ...
by grabiner
Thu Feb 04, 2016 10:17 pm
Forum: Personal Finance (Not Investing)
Topic: HELOC or Buy Next Car
Replies: 13
Views: 1098

Re: HELOC or Buy Next Car

If you borrow on the HELOC to buy they car, you will be losing 3.25%, tax-deductible. Since you seem to be in the 33% tax bracket, that is a net cost of 2.16%. If you actually have 27 years to repay and the rate is fixed, that is a long-duration loan. If you pay cash to buy the car, and pull money o...
by grabiner
Thu Feb 04, 2016 10:05 pm
Forum: Investing - Theory, News & General
Topic: I don't understand the expected 1 year inflation implied by the TIPS secondary market
Replies: 7
Views: 555

Re: I don't understand the expected 1 year inflation implied by the TIPS secondary market

TIPS inflation adjustments lag the CPI by two months. This can create odd yields for short-maturity TIPS if inflation in the last two months has been unusually high or low.
by grabiner
Thu Feb 04, 2016 10:00 pm
Forum: Investing - Help with Personal Investments
Topic: TLH timing question
Replies: 15
Views: 929

Re: TLH timing question

Thanks for all your help! so... we intend to TLH a 2K loss in our Vanguard taxable account, don't want to leave the market so will reinvest right away... anyone could suggest what are good pairs for VINEX, VTSAX? (similar enough but avoid wash sale) Thanks! :happy VINEX (International Explorer) is ...
by grabiner
Thu Feb 04, 2016 9:38 pm
Forum: Investing - Help with Personal Investments
Topic: TLH carryover
Replies: 7
Views: 331

Re: TLH carryover

Capital losses, and carryover losses can also be used to offset capital gains distributions from mutual funds. Yes. However, only for long-term capital gains distributions. You cannot use carryover losses to offset short-term capital gains distributions from your mutual fund. Don't ask me why, it's...

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