Search found 463 matches

by knowmad
Sat Sep 23, 2017 1:36 pm
Forum: Investing - Theory, News & General
Topic: VG wants everyone to transfer to a brokerage account?
Replies: 110
Views: 13730

Re: VG wants everyone to transfer to a brokerage account?

Because of the Equifax hack, the IRS is encouraging everyone to file their taxes as early as possible. Brokerage accounts deliver their 1099s much later than mutual fund accounts, and thus increase the risk of fraudulent tax returns being filed in your name.
by knowmad
Sat Feb 21, 2015 12:15 am
Forum: Investing - Theory, News & General
Topic: Cap Gains & Divs killed me this year
Replies: 65
Views: 9344

Re: Cap Gains & Divs killed me this year

baw703916 wrote:Isn't the problem one of owning actively managed equity funds in taxable accounts? Index funds distribute dividends, but hardly ever capital gains.
Vanguard Life Strategy Conservative Growth had a massive capital gain distribution in 2014. And it is 100% index funds.
by knowmad
Sat Jan 24, 2015 11:38 pm
Forum: Personal Finance (Not Investing)
Topic: Turbo Tax
Replies: 1
Views: 697

Re: Turbo Tax

Can you use Turbotax deluxe if you had mutual fund dividends and capital gains, but sold no shares?
by knowmad
Tue Nov 25, 2014 12:32 am
Forum: Investing - Theory, News & General
Topic: Vanguard: "Updated capital gains estimates "
Replies: 14
Views: 3016

Re: Vanguard: "Updated capital gains estimates "

I just upped my 4th quarter estimated tax payments. I don't know how we can be expected to make equal payments in each quarter when the end of year distributions are so variable. I suspect the government won't complain too loudly about the extra amount. I recall some odd warning in turbotax the last...
by knowmad
Mon Nov 24, 2014 10:57 pm
Forum: Investing - Theory, News & General
Topic: Vanguard: "Updated capital gains estimates "
Replies: 14
Views: 3016

Re: Vanguard: "Updated capital gains estimates "

All Lifestrategy funds own the same 4 underlying index funds, just in differing proportions. The long term gains for Life Strategy Conservative Growth are out of all proportion compared to the other Life Strategy funds. Is this fund less tax efficient than the others who own more bonds in one case, ...
by knowmad
Mon Nov 24, 2014 10:12 pm
Forum: Investing - Theory, News & General
Topic: Vanguard: "Updated capital gains estimates "
Replies: 14
Views: 3016

Re: Vanguard: "Updated capital gains estimates "

Why the heck is Life Strategy Conservative Growth throwing off such a huge long term capital gain compared to all the other Life Strategy funds? This makes estimated tax planning difficult, as the 2014 estimated long term capital gain is 9 times higher than the 2013 long term capital gain. I guess I...
by knowmad
Mon Jul 28, 2014 3:45 pm
Forum: Investing - Theory, News & General
Topic: Vanguard sued for [failing to charge market rates to and then paying taxes on services to its mutual funds]
Replies: 806
Views: 147484

Vanguard being sued?

[Thread merged, see below. I also fixed your link. --admin LadyGeek]

Former employee sues Vanguard, alleges false tax filing

I don't have a WSJ account so I couldn't read all the details. Still it sounds like it could be serious.
by knowmad
Sat Jan 25, 2014 1:16 pm
Forum: Personal Finance (Not Investing)
Topic: Please, which Turbo Tax product?
Replies: 21
Views: 2863

Re: Please, which Turbo Tax product?

Just found out I was wrong. We will HAVE to pay for premier because of mutual fund short and long term capital gains. Vanguard sends out a 1099-DIV and the gains are reported on Schedule D. Ugh. I'll add this to my personal inflation list. Just found out I was wrong about being wrong. You don't nee...
by knowmad
Sat Jan 04, 2014 2:52 pm
Forum: Personal Finance (Not Investing)
Topic: Please, which Turbo Tax product?
Replies: 21
Views: 2863

Re: Please, which Turbo Tax product?

Going to try doing taxes myself this year with Turbo Tax and am wondering which product I'll need. I own mutual funds in a taxable account, will have dividends and capital gains to report, but have not sold anything. I'm in the same boat and I don't think we need to pay for premier online. Basic/De...
by knowmad
Sat Jan 04, 2014 2:46 pm
Forum: Personal Finance (Not Investing)
Topic: Please, which Turbo Tax product?
Replies: 21
Views: 2863

Re: Please, which Turbo Tax product?

Going to try doing taxes myself this year with Turbo Tax and am wondering which product I'll need. I own mutual funds in a taxable account, will have dividends and capital gains to report, but have not sold anything. I'm in the same boat and I don't think we need to pay for premier online. Basic/De...
by knowmad
Tue Dec 03, 2013 10:13 pm
Forum: Investing - Help with Personal Investments
Topic: Why is automatically reinvesting dividends bad in taxable?
Replies: 21
Views: 2431

Re: Why is automatically reinvesting dividends bad in taxabl

I just use average cost basis. I hardly ever sell anything anyway.
by knowmad
Thu Nov 21, 2013 8:58 pm
Forum: Personal Consumer Issues
Topic: Any Air Bed Recommendations?
Replies: 8
Views: 914

Re: Any Air Bed Recommendations?

I've slept on one of these for 3+ years. It's comfy and raised nearly 2 feet.

http://www.amazon.com/Insta-Bed-Queen-R ... B000ETXX1U

It was only $103 when I bought it.
Looks like the price has increased.
by knowmad
Thu Jan 10, 2013 4:05 am
Forum: Investing - Theory, News & General
Topic: Fraudulent Chinese Listings in the Markets
Replies: 2
Views: 433

Fraudulent Chinese Listings in the Markets

Scary story:

http://abcnews.go.com/Blotter/us-invest ... d=18164787

I wonder if any index funds ended up owning any of these fraudulent companies? How is lifetime total return for the passive index investor affected by market fraud such as this?
by knowmad
Tue Dec 04, 2012 1:24 am
Forum: Investing - Help with Personal Investments
Topic: Undo Roth contributions for 2012 without forms?
Replies: 14
Views: 1737

Re: Undo Roth contributions for 2012 without forms?

Wow, thanks for the quick and concise help! The bogleheads forum never ceases to impress. And yep, I have stopped my automatic weekly Roth contributions for 2012, and I do plan to top off my traditional IRA with a $384.60 contribution before the end of the month. From https://ttlc.intuit.com/questio...
by knowmad
Tue Dec 04, 2012 1:07 am
Forum: Investing - Help with Personal Investments
Topic: Undo Roth contributions for 2012 without forms?
Replies: 14
Views: 1737

Re: Undo Roth contributions for 2012 without forms?

Vanguard was able to do my 2012 Roth recharacterization to Traditional today all over the phone without paper forms! My question is this. I recharacterized 4615.40 in contributions and 435.89 in earnings attributable to those contributions. This totals 5051.29. Since I did not have an employer retir...
by knowmad
Mon Dec 03, 2012 1:36 am
Forum: Investing - Help with Personal Investments
Topic: Undo Roth contributions for 2012 without forms?
Replies: 14
Views: 1737

Re: Undo Roth contributions for 2012 without forms?

If I do the two actions separately, then it counts as a sale of shares and I think I have to do the calculations of earnings myself. I'm told that if Vanguard does the recharacterization, they just exchange shares from the Roth to a Traditional IRA without a true sale occurring and they do the earni...
by knowmad
Mon Dec 03, 2012 12:18 am
Forum: Investing - Help with Personal Investments
Topic: Undo Roth contributions for 2012 without forms?
Replies: 14
Views: 1737

Re: Undo Roth contributions for 2012 without forms?

Thanks for the help. After reading up on this more at the links provided, it looks like I am eligible for a recharacterization from Roth to traditional IRA since I was not covered by an employer sponsored plan for all of 2012. If I withdraw the 2012 contributions and their calculated earnings, then ...
by knowmad
Sun Dec 02, 2012 11:11 pm
Forum: Investing - Help with Personal Investments
Topic: Undo Roth contributions for 2012 without forms?
Replies: 14
Views: 1737

Undo Roth contributions for 2012 without forms?

I just realized that long term capital gains count toward your MAGI when calculating Roth contribution limits. This year I worked at a job that did not offer a 401k and I sold one Vanguard fund to buy another, generating long term capital gains. The combination of salary + capital gains + interest i...
by knowmad
Thu Feb 09, 2012 3:30 am
Forum: Investing - Help with Personal Investments
Topic: Putting $ Into Various Bond Funds. Am I Stupid?
Replies: 22
Views: 2450

Re: Putting $ Into Various Bond Funds. Am I Stupid?

Liquid wrote:
PB wrote:Knowmad,

Can you say more about LifeStrategy funds and your investments going disproportionately towards most disfavored asset.

Thanks -
I believe he means auto-rebalancing.
Yep both TR and LifeStrategy funds have inherent rebalancing, but LS funds don't glide.
by knowmad
Wed Feb 08, 2012 8:49 pm
Forum: Investing - Help with Personal Investments
Topic: Putting $ Into Various Bond Funds. Am I Stupid?
Replies: 22
Views: 2450

Re: Putting $ Into Various Bond Funds. Am I Stupid?

Savers are forced to take more risk secondary to artificially low rates, then when savers have fully converted to bonds, the fed will raise rates. :? The fed will raise rates when savers have given up on both cds (low rates) and bonds (low yields) and have fully converted to stocks. But noone will ...
by knowmad
Tue Feb 07, 2012 4:22 am
Forum: Investing - Help with Personal Investments
Topic: Investors under 35, what % of your portfolio is cash?
Replies: 50
Views: 4772

Re: Investors under 35, what % of your portfolio is cash?

10% for me. You should always have at least enough cash to cover a year of typical expenses.

I guess I don't really count though as I'm 38. :)
by knowmad
Mon Feb 06, 2012 2:07 am
Forum: Investing - Theory, News & General
Topic: Vanguard's simplified "core fund" lineup
Replies: 21
Views: 4289

Re: Vanguard's simplified "core fund" lineup

Why not go even simpler? LifeStrategy or Target Retirement, depending on whether you want a fixed or rolling AA. This eliminates the need for manual rebalancing. If there was a LifeStrategy TaxManaged that replaced Total Bond with Intermediate Term Tax Exempt, very few would ever need to consider an...
by knowmad
Sun Feb 05, 2012 3:55 pm
Forum: Investing - Help with Personal Investments
Topic: Wellington vs. Dividend Growth in this Interest Rate Climate
Replies: 6
Views: 1887

Re: Wellington vs. Dividend Growth in this Interest Rate Cli

Do you plan on selling everything before 2014? If not, then Wellington seems to be a safer long term investment. Even if bond yields crash for 2 years and then bond prices crash in the face of rising interest rates/inflation, the dividends from the Wellington stock portion will increasingly be used ...
by knowmad
Sat Sep 24, 2011 6:14 pm
Forum: Investing - Theory, News & General
Topic: Why Stocks Are Doing So Poorly
Replies: 95
Views: 10705

Other companies have come out with great innovative products as well, but they didn't succeed. Apple got lucky. That's because Apple is both innovative and focused on the details. Most innovations at other companies are mismanaged so badly that the resultant products suck. Apple also knows how to s...
by knowmad
Fri Aug 26, 2011 3:13 pm
Forum: Investing - Theory, News & General
Topic: Getting Shorter
Replies: 19
Views: 2996

I'm in it for the duration.
by knowmad
Wed Aug 10, 2011 11:44 pm
Forum: Investing - Theory, News & General
Topic: Why is Vanguard's TIPS fund up more than other Treasuries?
Replies: 19
Views: 2543

Don't TIPS have a slight negative correlation to equities though? Unlike nominal bonds. I thought all bonds had a somewhat negative correlation to equities? I'm just guessing that TIPs have even more of a negative correlation in times of extreme fear. I wish someone made a chart of price correlatio...
by knowmad
Wed Aug 10, 2011 11:32 pm
Forum: Investing - Theory, News & General
Topic: Why is Vanguard's TIPS fund up more than other Treasuries?
Replies: 19
Views: 2543

When people are scared, they buy TIPs (funds) more than Nominal (funds) because they sound safer. They don't really care or understand that the extra safety is just inflation protection, and comes at the expense of lower fixed rates. They just seem like magic protection from the big bad economy.
by knowmad
Thu Aug 04, 2011 5:52 pm
Forum: Investing - Help with Personal Investments
Topic: Today was a Really Bad Day
Replies: 278
Views: 49629

In 2008 I remember at least two worse point declines, both occurring close together. People said that the financial system was collapsing before our eyes. Then the market doubled in less than two years.
by knowmad
Thu Aug 04, 2011 5:48 pm
Forum: Investing - Theory, News & General
Topic: my thoughts on today's action
Replies: 71
Views: 9533

Bears are where I make the most, but they scare the crap out of me while I'm in them. That's why I've been overweighted in cash/bonds for more than a decade. I keep looking at the bargain purchases made in my 401k account in 2008 and 2009 to help reduce the fear.
by knowmad
Mon Jun 20, 2011 1:32 pm
Forum: Investing - Theory, News & General
Topic: Ally IRA CDs and savings accounts now available
Replies: 11
Views: 3094

Re: Coming Soon: Ally IRA CDs and savings accounts

I also suspect Ally is buying up deposits with these yields with the likely event of selling out the bank to a brick & mortar TBTF bank in the future. Their behavior is typical of start-up banks with the sole intent of going public and then selling out. In the meantime, I guess we should enjoy it w...
by knowmad
Sat May 14, 2011 3:29 pm
Forum: Investing - Help with Personal Investments
Topic: Why not use Munis as an emergency fund?
Replies: 22
Views: 2977

Anyone have returns on vanguard intermed muni going back to the early 80s? Try this https://personal.vanguard.com/us/funds/tools/pricehistorysearch?radio=3&results=get&FundType=VanguardFunds&FundIntExt=INT&FundId=0042&Sc=0&fundName=0042&fundValue=0042&beginDate=&endDate=&year=&radiobutton2=3#res VW...
by knowmad
Sat May 14, 2011 2:59 pm
Forum: Investing - Help with Personal Investments
Topic: Why not use Munis as an emergency fund?
Replies: 22
Views: 2977

How far back do muni funds go? Has there ever been a huge drop in NAV (yes, I know past performance....). And by huge, we mean 10%? The early 80's saw some huge muni drops. I think from 1978 to 1981, the Vanguard Intermediate Term Muni fund dropped more than 30%. It did recover though after a few y...
by knowmad
Wed Apr 20, 2011 7:13 pm
Forum: Personal Consumer Issues
Topic: Iphone vs. Android
Replies: 48
Views: 6820

pochax wrote:(virginmobile is only $25/month with unlimited texting and 3G use)
The Android Optimus V and the $25 plan from Virgin Mobile is the best bang for the buck in the wireless world. It's a great little phone.
by knowmad
Wed Apr 20, 2011 7:07 pm
Forum: Personal Consumer Issues
Topic: Internet Explorer 9
Replies: 25
Views: 2785

Chrome is the best browser. I haven't used IE in years.
by knowmad
Tue Mar 22, 2011 12:20 am
Forum: Personal Consumer Issues
Topic: explain the fascination of Facebook
Replies: 122
Views: 14177

I think you mean with "her" (she's the galaxy girl). But wasn't that more about who had access to the Usenet at that time than about how the Usenet worked? Usenet was more (but not entirely) about about what you said than who you were back then. Actual conversations happened. The difference is real...
by knowmad
Wed Feb 09, 2011 3:48 pm
Forum: Investing - Theory, News & General
Topic: TIPS and the CPI-U
Replies: 37
Views: 5150

Re: TIPS and the CPI-U

There is no CPI-knowmad that will index your personal spending. Although not nearly as widely used as the CPI-U, There is actually a CPI-knowmad. Here's how I've done it for the past 16 years. I track the money I spend each year in these categories: 1 Bdr Apt Rent + Power + Water Food Gas Clothing ...
by knowmad
Wed Feb 09, 2011 1:24 pm
Forum: Investing - Theory, News & General
Topic: TIPS and the CPI-U
Replies: 37
Views: 5150

Re: TIPS and the CPI-U

And yet it is remarkable how persistent is the misinformation that CPI adjustments to TIPS, SS, and other COLA'd benefits somehow exclude food and energy costs. It is either a remarkably careless or a deliberate misreading of the distinctions among the various CPI indices that have been created. I ...
by knowmad
Thu Dec 23, 2010 3:38 pm
Forum: Investing - Theory, News & General
Topic: "Stop panicking over muni defaults!"
Replies: 58
Views: 8108

Keep panicking!

More muni panic = more shares for me when I reinvest each month. I'm not worried because I don't plan to start selling shares for decades.
by knowmad
Wed Oct 13, 2010 11:45 pm
Forum: Investing - Theory, News & General
Topic: Physics, the Nature of Light and EMH
Replies: 14
Views: 1898

Adrian Nenu wrote:Otherwise might as well throw darts at a wall
To maximize profits, a monkey must throw the darts.
by knowmad
Wed Sep 08, 2010 6:25 pm
Forum: Investing - Help with Personal Investments
Topic: Worst case scenario?
Replies: 23
Views: 4399

Worst case scenario?

I own a good deal of Vanguard's Intermediate Term Tax Exempt. It is currently priced more than 6% above my average cost. I reinvest dividends and buy a small amount each week to maintain my ultraconservative 30/70 AA. In the worst case scenario of a 30 year period of rising rates, inflation spikes, ...
by knowmad
Sun Sep 05, 2010 3:28 am
Forum: Personal Consumer Issues
Topic: TV series to recommend?
Replies: 139
Views: 17729

Rubicon is phenomenal.
by knowmad
Mon Aug 16, 2010 2:01 pm
Forum: Investing - Theory, News & General
Topic: New market is not a bull or a bear but a wolf
Replies: 29
Views: 4048

Re: New market is not a bull or a bear but a wolf

I suspect we're being "played" by money, politics and the media. Everyone suspects a bull market is coming and the best way to maximize profits is to force an artificial bear just before the bull takes off. Maybe a 30-40% drop in the fall followed by a 100% gain in 2011 and the return of inflation ...
by knowmad
Sun Aug 15, 2010 12:33 pm
Forum: Investing - Help with Personal Investments
Topic: VWITX or VBIIX in a Vangaurd taxable account
Replies: 15
Views: 4207

Re: VWITX or VBIIX in a Vangaurd taxable account

Vanguard says that VBIIX has a 10 year return after taxes of 5.04%, while VWITX returned 4.81%. But VBIIX has ~1 year greater duration and maturity than VWITX, making VBIIX more sensitive to interest rate changes. That seems about fair. An extra .23% annual return for increased risk.
by knowmad
Thu Aug 12, 2010 9:26 pm
Forum: Investing - Help with Personal Investments
Topic: Stop buying my bonds!
Replies: 8
Views: 2831

Re: when to buy

Just out of curiosity, do you "buy" on Tues in order to have your purchase go through on Weds, or do you buy on Weds? I setup Vanguard's automatic investment plan (via the Vanguard website) to purchase shares of several funds on Wednesdays. I like that I can buy small amounts frequently with no com...
by knowmad
Thu Aug 12, 2010 5:08 pm
Forum: Investing - Help with Personal Investments
Topic: Stop buying my bonds!
Replies: 8
Views: 2831

Re: Stop buying my bonds!

BTW: purchasing every week in a taxable account is going to generate ~50 tax lots every year. Maybe you enjoy that kind of record keeping (or plan to use average cost basis) I use average cost basis. My plan (started 28/72, now 31/69, slowly moving towards 36/64 steady state) requires me to buy bot...
by knowmad
Wed Aug 11, 2010 8:14 pm
Forum: Investing - Theory, News & General
Topic: What would you do with a suitcase with $2 million in it?
Replies: 75
Views: 7689

fluffyistaken wrote:I would invest half of it in low risk mutual funds and then take the other half over to my friend Asadulah who works in securities :wink:
I would do absolutely nothing and it would be everything that I'd hoped it could be.
by knowmad
Wed Aug 11, 2010 8:03 pm
Forum: Investing - Help with Personal Investments
Topic: Stop buying my bonds!
Replies: 8
Views: 2831

Stop buying my bonds!

I purchase some of my bond fund (Vanguard Intermediate Tax Exempt) every Wednesday and the price just keeps going up AND UP. This needs to stop. It's late 2010 for crying out loud! I was supposed to be enjoying cheap prices and rising interest rates by now. What am I supposed to do, sell my shares t...
by knowmad
Wed Jun 30, 2010 6:23 pm
Forum: Investing - Theory, News & General
Topic: The first TIPS auction - would have, could have, should have
Replies: 48
Views: 5595

Re: The first TIPS auction - would have, could have, should

You got a line on the hottest investment for the NEXT 12 years? The obvious answers are stocks, real estate, and commodities, the only asset classes around that *might* be undervalued. Then in X years when we are all worth Y millions, we can cash out and buy TIPs yielding 4% real again as everyone ...
by knowmad
Fri Jun 04, 2010 3:20 pm
Forum: Investing - Theory, News & General
Topic: Fat Tails & Volatility Clustering in Stock Returns
Replies: 112
Views: 13174

The desire to control risk is part of the reason volatility clusters exist. Market timing and active risk control are both actions that perturb (and are perturbed by) the system they are attempting to control or predict. Even buy and hold investing suffers from this flaw as long as you make active d...
by knowmad
Fri May 28, 2010 11:46 am
Forum: Personal Finance (Not Investing)
Topic: Reinvest dividends or keep them separate?
Replies: 14
Views: 3713

Reinvesting dividends and using average cost basis works best for long term taxable bond fund holdings.