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I would agree that there can be advantages to taking RMDs later in the year, but I would advise against waiting until the very end of the year. The problem with that is if there is some bureaucratic snarl, then your institution (TIAA in this case) may have fewer people in the office and there are holidays and the RMD may not get done on time.

My opinion is that early December at the latest is a better choice.

TheGiantess wrote: ↑Sun Mar 26, 2023 11:30 am I work for a nonprofit and we are always looking for live or silent auction items. People donate a weekend at their lake house beach house etc. You could put it in the silent auction and offer something like "free RV parking for one month on a beautiful one acre lot with ....on the property of a Boglehead so you can learn investing while you're there...!":)
Then the highester bidder gets it and what they bid goes to the charity. Pretty simple.
TG

The highest bidder gets it and what they bid goes to charity, but the bidder only gets a tax deduction if they bid more than the fair market value of what they get by bidding.

There are control group rules for retirement plans. I think there is a high probability that because you are sole owner of your practice, which has a 401k, you are not permitted to have separate 401k's for other businesses that you also own.

I have a combination of 401k/ESOP with a former employer. The company stock, which is technically in the ESOP, can be set up to pay its dividends to an outside bank account. Under this set up because of the nature of the tax laws, there is no 10% penalty for early withdrawals (this used to be called the "direct dividend account"). This could be done whether you were still employed at the company or not. However, the dividends are not considered qualified dividends under the tax code and will be taxed at ordinary income tax rates.

You need to contact your employer/HR/plan administrator to see what the circumstances are for your plan.

I’ve never had the 7 day hold on the proceeds from a maturing T-Bill; however, I’ve had to wait 7 days to buy T-Bills with money in my settlement fund that was an electronic bank transfer from my bank checking account. I don’t understand why cash pulled from my checking account by Vanguard via an ACH bank transfer isn’t immediately available for buying T-Bills. DMW Treasuries have to be purchased with fully available funds (an ACH can be reversed for several days). If you buy Vanguard securities, which you can do sooner, Vanguard can reverse the transaction if the ACH transfer is reversed after it happens. It can't do so with a purchase of T-bills because the funds are going outside Vanguard. In that sense, it is like withdrawing the funds...

The rates on new brokered CDs are whatever the issuing banks want to offer. These are not necessarily responding quickly or at all to the Fed's changes on the very shortest term interest rate.

If there is an important change between annual prospectuses (for example, there is a manager change), then a supplement will be produced and this is generally placed at the beginning of the existing prospectus if you download it. Annually. Usually a addendum is only added because there was a major material defect. They are very expensive to do. The ones I’ve seen have been called “Supplements”. I have no idea about their expense and they generally don’t describe “material defects” but changes. That is certainly true for what follows: This is the bulk of the text in the Supplement to the Wellington, S&P 500, and Extended Market Index Fund prospectuses, all having taken effect on Dec. 5, 2022: Prospectus Text Changes The following is add...

If there is an important change between annual prospectuses (for example, there is a manager change), then a supplement will be produced and this is generally placed at the beginning of the existing prospectus if you download it.

Mutual fund prospectuses come out annually, but they don't appear on the date on the prospectus. That is an effective date (it is possible it is the date of filing with the SEC rather than the date of "publication" for Vanguard). The date that they become available is always a few weeks later. Therefore, I would expect the Wellington Fund prospectus for 2023 to appear towards the end of April.

You will get a variety of opinions (or you can find them on tax software threads here) on how to enter data. Livesoft says import. I have never imported. I always type in manually. I think you need to check each entry carefully either way. FWIW, I've been importing my Vanguard info into TurboTax for years and haven't had any problems. It makes things so much easier and correct vs typing the info in and wondering if you got it right. And it also avoids questions such as the OP has. Logging in is via a unique code that Vanguard provides you, so that adds a level of safety and privacy. The issue is that I have had problems with importing data into various computer programs and I have therefore stopped doing it. I'm fine with your doing it, ho...

You will get a variety of opinions (or you can find them on tax software threads here) on how to enter data. Livesoft says import. I have never imported. I always type in manually.

I think you need to check each entry carefully either way.

There are multiple threads commenting that the Federal Money Market fund's USGO isn't listed on the 1099. All we can say is that it isn't. (In the not so old days, none were listed on the 1099 and you had to look them all up separately and do the calculation.) Yes, you calculate the percentage of your dividends from USGO and then put the total in the relevant box (unless you live in a state that has minimum thresholds to count this at all). I don't understand question 2. With the brokerage platform, you have a single total for all your funds (under Vanguard Marketing Corporation), you don't enter each fund separately. Edit: now I understand question 2. Do not combine information from the two 1099's. Enter the mutual fund 1099's separately a...

I think too you would do well to contact the representative assigned to your college. I have accounts that are 403(b)'s but I also have accounts that are 401(a)'s. (I can see this in the quarterly account statements, among other places.) I wouldn't know myself how these fit together in RMD requirements.

Banks make all sorts of loans. I have CDs (non-brokered) with a bank that is probably most famous for being in the credit card business, so it is loaning money to credit card customers, mostly at annual rates above 15%.

Banks make auto loans, boat loans, you name it.

When I was buying brokered CDs (for my mother), however, I paid no attention to what the bank was loaning money for. Her CDs were below the FDIC insurance limit so I (and she) didn't care. I don't know why you should either.

ebeb wrote: ↑Sun Mar 19, 2023 4:04 pm

S_Track wrote: ↑Sun Mar 19, 2023 3:42 pm Where can you see the outflows/inflows on a daily basis? I would be interested in seeing this for VMFXX. Thanks.

There is a column for Daily net shareholder cash flow in https://investor.vanguard.com/investmen ... ash%20flow

In Schwab website for SWVXX it shows both inflows/outflows but vanguard only shows net inflows.

Vanguard shows net cash flows (if they are negative, then it is net outflow).

prd1982 wrote: ↑Sun Mar 19, 2023 11:47 am I believe QCDs can be made from inherited IRAs.

In addition the acknowledgement letter must indicate that the donor got nothing of tangible value. That is different than a regular donation. For a regular donation you can deduct the difference.

I get acknowledgement letters all the time for regular donations that (accurately) say that I received nothing of tangible value. Therefore QCD's are not different from a situation that charities deal with for regular donations.

First, T-bills don’t have a coupon. They are discount securities. Nor do they have “shares”; at brokerages they are available in increments of $1000 (face value). If it is a T-bill, it would have to have been just auctioned and new to the secondary market because T-bills have a maximum maturity of 52 weeks. At maturity, T-bills are redeemed at face, so you would receive exactly $1000 (the interest rate doesn’t matter).

Edit: what the interest rate affects is the amount of the discount at issuance.

Actually, there aren't any 3 month T-Bills either. This is a 13-week Treasury bill. (And there is no 30 day or 1 month T-bill: they are 4 weeks.)

-On the same exact CD, interest rate is always attached to that specific CD. Any interest rate the bank offers cannot be changed (no matter where you bought it or how many people have owned it) and the bank must pay you that interest rate. Sorry for the essay. Am I correct (more or less)? You didn't make clear when you wrote "exact same CD" what you meant. If a bank fails, then various rules change and the interest rate on a CD can change too. In my experience, what happens to a brokered CD is that you receive the principal and accrued interest in your settlement or core account (and therefore you no longer have the CD no matter how much longer it had to run). If you buy a CD directly from a bank, in most cases, the FDIC arranges...

Looking at the 2021 Annual report, the Sovereign Bonds range from provinces of Canada to Uruguay to Mexico to Japan to Korea. If I had to guess, there is a range of credit qualities here.

My suspicion is that in this case the apparent difference is explained by the fact that Vanguard's total is described as U.S. Government Bonds, while Morningstar only says " Government Bonds." I think that is quite obviously the case if you look at the entire breakdown. Note there is no foreign category in Morningstar's list. Morningstar: Sectors Investment % Government 62.32 Municipal 0.36 Corporate 36.61 Securitized 0.13 Cash & Equivalents 0.57 Other 0.00 Vanguard: Issuer % of fund Finance 13.70% Foreign 4.30% Industrial 21.10% Other 0.60% Treasury/Agency 57.30% Utilities 3.00% When looking at this portfolio using both lists, how do you evaluate the credit risk of those foreign bonds? In round numbers, there are 57% US gove...

Opening up new IRA accounts at Fidelity would not change your coverage situation. SIPC coverage is a single total for all accounts of one type. However, SIPC just covers what we might call bookkeeping problems at your brokerage. It doesn't cover market losses in your IRAs.

For the OP, if you want to track government versus corporate bonds, I wouldn't use summary website totals. I would look at annual and semi-annual reports.

If you really want great detail (and I don't know why because the point of a fund is that the managers deal with this), then you need to look at the complete list of holdings that is filed quarterly with the SEC (and it is probably at vanguard.com somewhere).

retiredjg wrote: ↑Fri Mar 17, 2023 9:16 am

nisiprius wrote: ↑Fri Mar 17, 2023 8:35 am P.S. I had no idea until ten minutes ago that the Vanguard Intermediate-Term Bond ETF include some foreign bonds.

I just stumbled on the same thing while looking at my "US vs International" bond ratio on my Vanguard webpage. Between Total Bond and Intermediate Term Bond, 10% of my bond allocation is international bonds.

I had no idea. I wonder if they have been there all along or if this is a recent development.

One advantage of obtaining annual reports is you can judge this sort of question. In 2012, the Intermediate-Term Bond Index Fund had 5.5% Sovereign Bonds (US Dollar denominated) and the Total Bond Index Fund had 4.5% Sovereign Bonds.

Consequently, I conclude that they have been there all along.

How could Fidelity undergo a bank run? Fidelity isn't a bank.

Edit: You wrote that you are worried about the safety of your bank accounts. Then you write about your 401k. Your 401k is not a bank account.

In looking over the news stories at the time of origin of TIPS, it is sort of touching to see the quotations about TIPS for “middle-income investors”. I say that because the Treasury market is overwhelmingly an institutional market and TIPS today are exactly like that. The latest 5-year (4 year, 10 month actually) and 10-year TIPS auctions had 99% of their notes going to competitive bidders (i.e., institutions). That was $36 billion. The total assets [all classes] of the Vanguard Inflation-Protected Securities Fund and Vanguard Short-term Inflation-Protected Index Fund are only $80 billion, so I would suggest most of these purchases are not going into retail mutual funds (that is, individual investors but indirectly). The main investors ar...

In looking over the news stories at the time of origin of TIPS, it is sort of touching to see the quotations about TIPS for “middle-income investors”. I say that because the Treasury market is overwhelmingly an institutional market and TIPS today are exactly like that. The latest 5-year (4 year, 10 month actually) and 10-year TIPS auctions had 99% of their notes going to competitive bidders (i.e., institutions). That was $36 billion. The total assets [all classes] of the Vanguard Inflation-Protected Securities Fund and Vanguard Short-term Inflation-Protected Index Fund are only $80 billion, so I would suggest most of these purchases are not going into retail mutual funds (that is, individual investors but indirectly). The main investors are...

I believe this provision, however it will work, doesn't become effective until 2024, so there is no immediate need for you to do anything.

nisiprius wrote: ↑Thu Mar 16, 2023 3:32 pm There are intermediate possibilities. After the collapse of the Reserve Primary money market fund, for about a year the FDIC insured money market [mutual] funds (up to $250,000), presumably because it was thought to be in the public interest for the public to have faith in the safety of these funds. Let's see, 9/18/2008. But they only did it for about a year, and then stopped.

Another reason that money market mutual funds were insured was that many invested in corporate commercial paper and many corporations were likely to have short-term financing problems if money market funds weren't functioning to buy their commercial paper.

This initial section assumes you purchased your CD directly from the bank: First, your principal and accrued interest are covered by FDIC insurance right up to the day of the bank’s failure. What happens next depends on how the FDIC handles the failure. In a minority of cases (especially for a small regional bank), the bank fails “completely” and the FDIC liquidates it. In this case, you will receive your principal and accrued interest and your CD ceases to exist. More commonly, the FDIC finds a healthy bank to take over the failed bank. In that case I am reasonably sure that your CD can continue but the bank that takes over can change the interest rate. You would then have the option to withdraw your principal without penalty if you don’t ...

Vanguard money market funds declare dividends daily (but pay at the end of the month). Therefore, you will receive dividends for the days you had money in the fund and it doesn't matter when you redeem your shares.

Brokered CD's are added to any other accounts under the same name at a single bank in determining where you are in relation to the FDIC limit.

Merionman wrote: ↑Wed Mar 15, 2023 7:56 pm How would I suspect a bank is in crisis?, you ask!

By what I see in financial media. That’s what would cause me to suspect a bank is in crisis.

In your earlier post, you asked "Are any of these banks suspect of being in crisis?". Now you say you would know by what you see in financial media.

At any rate, financial media vary in quality and some aren't worth looking at. Having said that, if there are banks you want to avoid, then you needn't buy CDs from them.

All of the brokered CD's Vanguard offers are FDIC insured. Your money is protected as long as you stay within FDIC limits.

I'm not sure what you mean by "are the mortgages safe"? Are you referring to whether the borrower's terms would change?


There can be no standard answer to how whether mortgages are sold to someone else. The credit union which I use, which is not small, sells all fixed rate mortgages (but retains servicing rights) but keeps at least some adjustable rate mortgages (because this greatly reduces the interest rate risk to them). Other credit unions may follow similar or different approaches.

The whole point of deposit insurance is so that depositors will feel secure because they can't lose money (I'm assuming here you are below the $250k limit [and in a NCUA insured credit union]) so they won't panic and create a bank run (or credit union run, in this case). Therefore, you should not do anything (assuming again your accounts are within the insurance limits).

There is no reason to be concerned, in my opinion, about the safety of money in the Federal Money Market Fund. (And it was always safer than the Prime Money Market Fund and is even safer now than it used to be. You should read the prospectus.)

I don't understand what you mean by "What about the several banks Vanguard uses to purchase cd's?" Vanguard doesn't purchase CD's for the Federal Money Market Fund.

If you mean brokered CD's that you can purchase, then these are FDIC insured as long as you stay under the $250,000 limit. That is as safe as you can get. (How would you suspect a bank of "being in crisis"?)

For what it is worth, this was posted here in this thread last month: viewtopic.php?t=397988

I agree with retired@50. Typical fees are not what is relevant. What is important is what are the fees associated (and investment choices) with these particular 401k accounts.

In the Total Stock Fund, how much in annual capital gains are you getting now? I don't think you are getting any, at least in recent years.

Since you suggest you have some other funds, what are they and what annual capital gains are they distributing?

There is a thread on the debt ceiling and you should read entries in that thread (viewtopic.php?p=7160031#p7160031) and this post should be merged there.

https://www.msn.com/en-ca/money/topstories/goldman-sachs-bought-svbs-bond-portfolio-lender-says/ar-AA18DlPv I see. Here's from a direct source (or here ): As previously disclosed and prior to the commencement of the receivership for Silicon Valley Bank, on March 8, 2023, Silicon Valley Bank completed the sale of a portfolio of available for sale securities with a book value of approximately $23.97 billion for net proceeds of approximately $21.45 billion (resulting in an after tax loss of approximately $1.8 billion). The portfolio was sold to Goldman Sachs & Co. LLC at negotiated prices. The book value is more like the par value rather than the market value, so it doesn't mean Goldman got a good deal. They may have, but the losses are i...

The tax liability is the same either way. Reinvestment is just a more convenient approach than the money from the distribution showing up in your settlement account and you choosing to buy the same security with it.

The FDIC can collect premiums in advance or borrow from the government, and the situation you describe will not happen. The problem here is mainly that small savers are forced to use the premiums they pay to bail out large savers who are not insured. I'm not sure if the FDIC legally could borrow from the government for this. Can you point me to a source, or are you speaking hypothetically if laws were different? There are many places where you can find documentation that the FDIC can borrow from the US Treasury. (The FDIC is part of the federal government, of course.) Here is one: "The FDIC may borrow from the Treasury under two statutory provisions. First, the FDIC has statutory authority to borrow on an interest-bearing basis from t...

Now there are losses to be had by the total market index fund and lots of them to continue to carry over until used up, right? In fact you can see all the carryover losses right here (https://www.bogleheads.org/wiki/Vanguard_Total_Stock_Market_Index_Fund_tax_distributions). The fund is carrying over $15 billion in carryover losses since 2020. But when would a total market index fund actually ever use them up? And another way of thinking about it, when/why would a total market index fund ever actually have capital gains? First, a public company in the Total Market Fund can buy out another in the Fund in a taxable transaction and that could create a realized capital gain. Second, a private equity firm can take a company private (this has hap...

The FDIC has a $100 billion line of credit directly with the US Treasury. They have never drawn on this. As Alex_686 remarks upthread, the FDIC (specifically the Deposit Insurance Fund) went negative in the 2008-2009 financial crisis (it actually went negative in 2009 not 2008), but the FDIC chose to have banks pre-pay premiums in advance rather than draw on this line of credit. (Congress actually temporarily increased the line of credit to $500 billion in 2009 through 2010.)

Keep in mind that the total assets or deposits of a failed bank is never the same as the loss the FDIC takes, which is always rather less.

Never had any issues with the WaMu debacle for accessing money. That’s because WaMu was taken over immediately by JPMorgan Chase Bank. There was no interruption in service. That not likely to be the case with SVB. Except that the FDIC announced Friday that insured depositors will have full access to their deposits no later than Monday morning including on-line banking and other services. Uninsured depositors are another matter. It will be interesting to see how this actually works out on Monday. Will SVB be able to provide each of is depositors with Federal Reserve Notes up to $250,000 of their account balances? If depositors attempt to wire funds to another financial institution, how will the receiving institution be able to verify that t...

rockstar wrote: ↑Sun Mar 12, 2023 3:28 pm

smooth_rough wrote: ↑Sun Mar 12, 2023 3:23 pm Auction process underway to find buyer for SVB. Bidding starting at $1.

Why would anyone want to buy them? JPM is already poaching their clients with the baggage.

It is the assets that auction purchasers would be interested in. Some assets will be easy to value (the Treasuries or other publicly traded debt securities SVB still owns), other assets (such as loans) will be harder to value.

dkturner wrote: ↑Sun Mar 12, 2023 2:55 pm

runner3081 wrote: ↑Sat Mar 11, 2023 2:49 pm Never had any issues with the WaMu debacle for accessing money.

That’s because WaMu was taken over immediately by JPMorgan Chase Bank. There was no interruption in service. That not likely to be the case with SVB.

Except that the FDIC announced Friday that insured depositors will have full access to their deposits no later than Monday morning including on-line banking and other services. Uninsured depositors are another matter.

FDIC might have way to "encourage" sale of SVB to major bank? Offer some kinds of guarantees or backstop the deal to de-risk it for the acquiring bank? Does SVB have any assets worth acquiring? Of course, SVB has assets worth acquiring. It has Treasuries it has not yet sold. It apparently has some loans.The FDIC estimated on Friday that SVB had assets of $209 billion. Now it may take some time to realize reasonable or maximum value from them. It is common for FDIC to agree to share losses in some way with an acquiring bank. It is a way to reduce the losses the Deposit Insurance Fund takes (see this example from 2009 in which the acquiring bank purchased the failed bank's assets at a discount and where the acquiring bank and the F...

hudson wrote: ↑Sun Mar 12, 2023 2:05 pm

Geologist wrote: ↑Sun Mar 12, 2023 1:38 pm
A TIPS fund has to distribute principal adjustments in the dividends whether it sells its holdings or not, so no, it doesn't get the adjustment that way.

A TIPS fund's turnover may not be all that high. Vanguard's Inflation Protected Securities Fund (VAIPX) has had annual turnover of about 25% in most years.

I think the only way that fund or ETF can get the inflation adjustment is to sell early or get the payout from a mature TIP.

Where it gets the funds is an entirely different matter than whether it is turning over its portfolio. VAIPX had $1.3 billion in a money market fund as of its fiscal year end (Dec. 31, 2022). That will cover a lot of distributions.