Search found 47 matches

by starboard
Mon Dec 11, 2017 12:58 pm
Forum: Personal Consumer Issues
Topic: Moto G5 Plus: Software updates?
Replies: 84
Views: 8074

Re: Moto G5 Plus: Software updates?

Hi VictoriaF, I recently traveled a similar road. Starting with this thread: Re: No true pay as you go [cellphone plan] https://www.bogleheads.org/forum/viewtopic.php?f=11&t=230728 https://www.bogleheads.org/forum/viewtopic.php?f=11&t=230728&newpost=3594783#p3592669 I went with MintSIM, first plugging the SIM into our Nexus 5 phone that usually runs on a legacy T-Mobile pre-paid plan for talk and text only. This legacy plan costs us about $25 per year, as long as we buy more time once a year, the existing time extends for another year. The phone is rarely used at present, mostly available for use when traveling. Once I found that MintSIM worked very well for me, I purchased a MotoG5 Plus from Amazon. The price for the 4/64 GB ve...
by starboard
Mon Oct 30, 2017 8:20 pm
Forum: Personal Consumer Issues
Topic: No true pay as you go [cellphone plan]
Replies: 63
Views: 8811

Re: No true pay as you go [cellphone plan]

miketheboglehead: FreedomPop may be a good option for you. based on you usage needs, their free plan may even be a good fit. They charge a one time $30 activation fee. ==================== I'd echo the suggestion that you take a look at Freedompop based on your needs. They are offering the LTE Sim for 99 cents right now, works on ATT or Tmobile (depending on signal strength). Free plan offers 200 minutes, 200 texts and 200mb which you can boost to 700mb per month using the "friends" option (Google it for more info). They also have a global sim offering the same free amounts on 3g but is usable globally. I'm writing this in Venice airport, completing a European trip in which I used my global sim in Germany, Austria, Switzerland and...
by starboard
Tue Jul 24, 2012 10:42 am
Forum: Investing - Theory, News & General
Topic: Wiki: Asset Allocation - Update "Age in Bonds"?
Replies: 99
Views: 34179

Re: Wiki: Asset Allocation - Update "Age in Bonds"?

I am pleased to see the edits to the "live" version: Asset Allocation and want to thank LadyGeek for heading up this effort to improve the wiki. Many others made important contributions to the discussion that centered on the general Age in Bonds concept, and I hope this thread remains a valuable resource that sheds light on Asset Allocation. I've certainly learned in the process of watching this discussion develop.

I did note that both footnote1 and footnote2 connect to this thread at the same entry point, which is fine if that is intended.

stb
by starboard
Sun Jul 22, 2012 10:27 am
Forum: Investing - Theory, News & General
Topic: Wiki: Asset Allocation - Update "Age in Bonds"?
Replies: 99
Views: 34179

Re: Wiki: Asset Allocation - Update "Age in Bonds"?

I am pleased with the direction of recent edits as shown in temporary draft page Scratch Pad - Bogleheads . Although implied in the quote that Taylor cited, I'm not sure that Bogle only intended capitalization of SS and Pension to be applied only "during the retirement distribution phase". In other places where he has suggested capitalization, it appears to apply to all stages of investment. It certainly is a more powerful influence in later stages, where it tends to increase equity holdings. As I said in my original post "In some ways it does make sense to exclude capitalizing these things for younger investors, who may have no reliable numbers for either option". If you don't have reliable numbers, then there is no goo...
by starboard
Sat Jul 21, 2012 5:37 pm
Forum: Investing - Theory, News & General
Topic: Wiki: Asset Allocation - Update "Age in Bonds"?
Replies: 99
Views: 34179

Re: Wiki: Asset Allocation - Update "Age in Bonds"?

Since my request to alter the Wiki with regard to Bogle's Age in Bonds rule of thumb started this, I guess I should try to clarify my thoughts regarding an increasingly diverse discussion. My initial point is quite simple: If we start out the Wiki section with this phrase: Bogle recommends "roughly your age in bonds" then we are duty bound to follow out Bogle's rule and include capitalization of SS and Pension (especially if the Defined Benefit Pension (DBP) is Cost of Living Adjusted (COLA)) and that they include this capitalized amount in their bond allocation. In my initial comment, I noted that Bogle has included capitalization of SS and Pension with Bonds in several of his books. I included a somewhat wide ranging reference i...
by starboard
Wed Jul 18, 2012 11:52 am
Forum: US Chapters
Topic: Suggestions for the Wiki
Replies: 699
Views: 537675

Re: Suggestions for the Wiki

A possible edit to the Wiki, under the sections Asset Allocation, Rules of thumb "Bogle recommends "roughly your age in bonds"; for instance, if you are 45, 45% of your portfolio should be in high-quality bonds. Recently, less conservative rules have emerged such as (age - 10) or even (age - 20) in bonds." This is fine, as far as it goes, however Bogle also recommends that people capitalize their SS and Pension (especially if the Defined Benefit Pension (DBP) is Cost of Living Adjusted (COLA)) and that they include this capitalized amount in their bond allocation. I have read this in several of his books and it was also in the transcript for the Steve Forbes interview (shown below). In my opinion, if folks do not follow ...
by starboard
Wed Mar 21, 2012 5:33 pm
Forum: Investing - Theory, News & General
Topic: Free book by Boglehead Oblivious Investor
Replies: 26
Views: 3673

Re: Free book by Boglehead Oblivious Investor

ObliviousInvestor wrote:Thank you for mentioning the book, Camper!

. . . here's the link directly to Amazon with the Bogleheads' affiliate tag, in case it does end up helping: http://www.amazon.com/dp/0981454240/?ta ... ads.org-20
Thanks Mike!

This was a great excuse to download the PC Kindle App and get a great reference book at the same time!

stb
by starboard
Mon Mar 05, 2012 12:33 pm
Forum: Investing - Theory, News & General
Topic: My “Aha!” Moment in Investing
Replies: 94
Views: 11956

Re: My “Aha!” Moment in Investing

3CT_Paddler wrote: My "Aha!" moment came from reading Bogle's Little Book of Common Sense Investing a year or two out of college. Even someone with little background in finance can see the sound logic and honesty that Bogle used to make index investing second nature for so many people.
This gem of a book was also my "Aha!" moment. We had just signed up for variable anuities, and an adviser to
"manage" our limited investments for a 1.5% fee. . . fortunately "Aha!" occured just before the ink on our
signatures had dried. There was a several month pause, then we began at Vanguard.

It was a close call, and we've never looked back.

stb
by starboard
Mon Jan 30, 2012 10:56 am
Forum: Investing - Theory, News & General
Topic: Problems with TD website?
Replies: 15
Views: 1331

Re: Problems with TD website?

I had no problems purchasing on Friday, 1/27/2012.

I purchased on several different accounts and everything went smoothly

stb

edited to correct date
by starboard
Mon Jan 23, 2012 1:03 pm
Forum: Personal Investments
Topic: Avoiding a capital gain (maybe).
Replies: 10
Views: 1130

Re: Avoiding a capital gain (maybe).

The reason I want to switch to a life strategy fund is so that when I die my widow has only one fund with a fixed asset allocation and won't have to fuss with taking so much from TBM and so much from TSM to maintain the same asset allocation. In that case, you may want to use a Target Retirement fund instead, so that your allocation will grow more conservative over time. If you are in LifeStrategy Moderate Growth now (60% stock), and need to drop to 40% stock later, you will have a large capital gain switching to Conservative Growth. If you are in a Target Retirement fund which is 60% stock (five years before the target date), it will be 40% stock nine years later without as much of a tax bill. Like pjstack, I am retired, have no earned in...
by starboard
Fri Jan 13, 2012 6:25 pm
Forum: US Chapters
Topic: Is it time to start a New Mexico "local" chapter?
Replies: 3
Views: 862

Re: Is it time to start a New Mexico "local" chapter?

Grasshopper wrote:Is Rodeo, the most western town in New Mexico considered?
If you can get more than one of us to show up, then Yes, let's Rodeo West. :)

Rodeo looks to be just over a mile East of the Arizona / New Mexico state line. . .

stb
by starboard
Fri Jan 13, 2012 3:51 pm
Forum: US Chapters
Topic: Is it time to start a New Mexico "local" chapter?
Replies: 3
Views: 862

Is it time to start a New Mexico "local" chapter?

I wonder if there might be enough interest to form a New Mexico "local" chapter?

New Mexico is such a big state (fifth largest in the United States), so a concern would be the distances people would have to drive to attend get-togethers. Perhaps we could solve part of the problem by meeting in some of our larger cities over time.

I know a couple of us are interested, how about you?

Thanks,
stb
by starboard
Fri Jan 13, 2012 3:32 pm
Forum: Investing - Theory, News & General
Topic: The Three-Fund Portfolio
Replies: 3899
Views: 2435220

Re: The Three Fund Portfolio

My question is how best to implement the three fund portfolio when all investment is in taxable accounts? In my case (retired with no earned income), a tax sheltered account is not going to happen. Taylor: Thanks for the advice regarding Vanguard's Short-Term or Intermediate-Term Tax-Exempt bond funds. LadyGeek: Thanks for the link to tfb's detailed bond fund yield calculator from the wiki. I had not seen that one yet. baw703916: Thanks for the comparison between Int Term Tax Exempt and Total Bond (TBM). I am looking for something like the Target Income, which as a fixed stock/bond ratio, so Vanguard's Tax Managed Balanced might be a good idea. It has about a 50/50 ratio, so I would also want to use something like Intermediate-Term Tax-Exe...
by starboard
Wed Jan 11, 2012 12:55 pm
Forum: Personal Investments
Topic: Calculating Return for the Year
Replies: 18
Views: 2161

Re: Calculating Return for the Year

dratkinson wrote:I let Vanguard tell me.

Log into your account. Look under the "Performance" tab.
I have not been able to duplicate Vanguards 1-year personal rate of return.

Please see this question from another thread if anyone can help to clarify what it is that I am doing wrong:
http://www.bogleheads.org/forum/viewtop ... 0#p1271790

Thanks,
stb
by starboard
Wed Jan 11, 2012 11:13 am
Forum: Investing - Theory, News & General
Topic: The Three-Fund Portfolio
Replies: 3899
Views: 2435220

Re: The Three Fund Portfolio

My question is how best to implement the three fund portfolio when all investment is in taxable accounts? In my case (retired with no earned income), a tax sheltered account is not going to happen. Earlier in this thread, Cid and Taylor discussed substituting tax exempt bond funds in place of Total Bond: http://www.bogleheads.org/forum/viewtopic.php?p=1267868#p1267868 For me, the real issue here is to approximate Target Retirement Income (or something similar with perhaps 35-40% equity) with a taxable account. There are no state specific tax exempt funds that would apply to my case. Any tax exempt bond fund substitutions will not be as diversified as Total Bond, but perhaps a blend of Intermediate and High Yield Tax exempt would be best? Th...
by starboard
Mon Jan 09, 2012 2:26 pm
Forum: Investing - Theory, News & General
Topic: 2011 Returns Thread
Replies: 137
Views: 15604

Re: 2011 Returns Thread

How'd you do this year? If you don't know how to calculate your return using XIRR or similar, take a look at this: http://whitecoatinvestor.com/how-to-calculate-your-return-the-excel-xirr-function/ I have computed a XIRR of 6.99% for 2011 Vanguard assets, however Vanguard shows my one year rate of Personal Return at 3.50%. I am trying to understand why the numbers are so different. In my case, some additional investments were made over the course of the year, but not on any regular schedule, and no withdrawals were taken. When I compute the XIRR function, I have been careful to start with Vanguards starting year balance as a positive value, then enter contributions as positive values, finally using Vanguard's year end balance as a negative...
by starboard
Tue Dec 27, 2011 4:16 pm
Forum: Personal Finance (Not Investing)
Topic: Financial Cost Analysis of Smartphones
Replies: 31
Views: 4161

Re: Financial Cost Analysis of Smartphones

Unless I am not mistaken, all big 4 telcos will *NOT* allow you to get a smartphone without data, which incurs unnecessary cost for people (like me) who don't need it, I have Wi-Fi access 90% of the time. Yes, you can use a smart phone without paying for wireless data. Here's what we did: We had a T-Mobile flip phone on a prepaid basis. We got to the Gold prepay level (purchasing time totaled $100), so that our time only needs to be renewed before the end of each year at a cost of $10 to $25 (we typically purchase the $25 level = 150 minutes). Last year, we got an unlocked smart phone (a Droid Milestone 2) that was confirmed to be compatible with the SIM card in our older T-Mobile Samsung flip phone. We moved the SIM card to the Droid, and...
by starboard
Mon Nov 14, 2011 6:15 pm
Forum: Investing - Theory, News & General
Topic: TDdirect new login
Replies: 30
Views: 3261

Re: TDdirect new login

exigent wrote --->
bongleur: If you want to authorized a new computer (or need to re-authorize your existing computer) you just re-request a one-time use code via e-mail.
Is the authorized computer tied to only one TD account, or can you use the same
authorized computer for multiple TD accounts?

The testing I've done so far is not conclusive.

stb
by starboard
Thu Aug 04, 2011 9:19 am
Forum: Personal Investments
Topic: "Target Retirement Income Fund" - Retiree Seeking
Replies: 12
Views: 3512

Thanks nisiprius, that was a great summary . Other factor to consider is that the "glide path" of the
Target Retirement 20xx funds causes them to turn into the investment asset allocation of the
Target Retirement Income fund about 7 years after their target date.

You can play around with the glide path here:
https://personal.vanguard.com/us/funds/ ... rgetAnchor

stb
by starboard
Fri Jul 22, 2011 12:56 pm
Forum: Personal Investments
Topic: When does "age in bonds" NOT make sense?
Replies: 35
Views: 8249

Calling it a "rule of thumb" implies that it an easy to learn and apply rule that is a approximation of some more exact rule. My first guess is the that more exact rule is based on the idea that the investment risk of every invested dollar is a function of the time it will remain invested. It assumes that time is a diversifier. This is coupled with the fact that, for the non-rich majority, a larger proportion of one's nest-egg tends to become more short term. Also coupled with a generalization about the average lifespan. The "age in bonds" rule of thumb assumes: 1. Time diversification is valid. 2. Significant resource depletion during retirement. 3. All users of the rule have an about average lifespan 4. Average lifesp...
by starboard
Mon Jul 11, 2011 9:59 am
Forum: Personal Investments
Topic: 20 something looking for financial advice after dad's death
Replies: 13
Views: 2071

Re: 20 something looking for financial advice after dad's de

Hello All, A family member recommended this site to me and I have been reading it often and finally decided to ask for some advice. About a month ago my step father passed away unexpectedly. . . I am sure I am forgetting or leaving out a million different things I don't know about this process. My father was 51 and I had just begun saving for retirement and over the last year so I am a little hesitant about all of this. Any additional advice or works of guidance would be greatly appreciated! Thanks! - Confused 20-something :? I am sorry to hear of your loss. I can understand why this might feel like a big task to face. You may want to check your local library to see if they have a copy of "The Executor's Handbook: A Step-By-Step Guide...
by starboard
Wed Jun 15, 2011 2:21 pm
Forum: Personal Finance (Not Investing)
Topic: anyone else harbor extreme animosity toward a retail bank?
Replies: 100
Views: 11185

Peter: You have a better credit union than I. As a follow up for those who think they may never need a medallion signature guarantee, here is a search of Vanguard for when a medallion signature guarantee might be needed: http://www.google.com/search?q=site%3Avanguard.com++medallion+signature+guarantee Of course, Vanguard makes it much easier to see the forms for transferring money into Vanguard than the forms for transferring out, so many of those "might need"s may really be "need"s. Note that Vanguard does require a signature guarantee for a gift. http://www.vanguard.com/pdf/hnwg_individuals.pdf To answer two points: Yes, both of the local credit unions we use have safe deposit boxes. Yes, both do medallion signature g...
by starboard
Tue Jun 14, 2011 2:05 pm
Forum: Personal Finance (Not Investing)
Topic: (Sail) Boats for Bogleheads
Replies: 32
Views: 4349

Re: (Sail) Boats for Bogleheads

Before everyone tells me they are mutually exclusive, I am pretty sure some Bogleheads sail. Boats appear to be the biggest money sink after a divorce. I love sailing so I'm going to get a boat in a few years. Do the sailors have any tips on how to reconcile being a Boglehead and owning a boat? For those that want to sail but don't want to pay a lot to do so, there is another choice. Radio Controlled sailboats. They don't put you physically on the water, but they sure can be fun to sail. You have no mooring fees, don't need to find or feed crew, no trailer to worry with, no heavy lifting, you have low maintenance, and in many venues, you can find others who also enjoy the sport. Many cities have established clubs that race various classes ...
by starboard
Sun May 29, 2011 7:53 pm
Forum: Investing - Theory, News & General
Topic: I-bonds--electronic vs. paper
Replies: 45
Views: 7421

I will be interested in the responses to this thread. I have yet to be convinced that there is any advantage to converting paper bonds to electronic bonds, so I will see if I am mistaken. This isn't going to apply to most people, but I am currently living overseas working with the US Army in austere conditions. Likewise, I might be stationed on a ship in similar circumstances. For me, I do not want to own tangibles. My assets are primarliy in electronic form. That's the best I can do to come up with a good reason for avoiding paper -- for those of us that live like hobo's. We have difficulty getting our mail. Otherwise, all of your points are well taken. If you have no fear of loss due to theft or destruction, then what's not to love about...
by starboard
Sun May 29, 2011 7:45 pm
Forum: Personal Investments
Topic: Sharing My I-Bond Purchase Experience
Replies: 53
Views: 7930

Re: Bought I Bonds

I went to bank, but made the purchase outright through the on-line application form provided me on the I Bonds for dummies post. They cleared the bank in 3 days. Treasury direct was even easier. Very simple process. Thanks to everyone who helped us newbies. I want to second rustymutt on this point. A big Thank You to all of the experienced folks who helped us newbies through the process for our first time. Mel and sscritic were particularly helpful in my case. I managed to get two paper and two electronic by the end of this month. I may try for two more paper in the names of our trusts, but the time needed to ACH transfer into our local credit union will mean that the next two will be timed to hit the end of June. I did get Treasury Direct...
by starboard
Sun May 22, 2011 5:39 pm
Forum: Investing - Theory, News & General
Topic: Treasury Direct Access Card
Replies: 39
Views: 13355

tetractys wrote:Here's a link to the Access Card tutorial:
http://www.treasurydirect.gov/indiv/hel ... torial.htm
When I ran the tutorial, it appeared that there is no way to enter lower case
characters in a password. If lower case letters were used on the initial
application, were they converted and stored as uppercase? I don't have
the card yet so I can't test this myself.

Thanks
by starboard
Sat May 21, 2011 11:42 am
Forum: Investing - Theory, News & General
Topic: Applying for Series I US Savings Bonds
Replies: 51
Views: 7046

Re: treasury direct

Rager1 wrote:
2beachcombers wrote:...My question is do I need to set up 4 seperate accounts, 4 seperate cards, etc?...
Yes. Two separate accounts for you, and two separate accounts for your wife, if you want to purchase the maximum amount of I Bonds electronically.

Ed
Rager1, thanks for answering my question on a related thread:
http://www.bogleheads.org/forum/viewtop ... 1305911436

If I have set up one individual Treasury Direct account,
I can only purchase electronic bonds under my SSN?

Answering my own question:
I now realize that this can only be done by way of the "gift box" on a
Treasury Direct account

Edited to withdraw my question, and add the info about the "gift box"
by starboard
Fri May 20, 2011 11:58 am
Forum: Personal Investments
Topic: buying paper i bonds- TD mail order
Replies: 18
Views: 3475

The answer is also in the wiki: Each version is limited to $5,000 per person per year. (Investors can also purchase an additional $5,000 in paper bonds and $5,000 via TreasuryDirect for their trust.) http://www.bogleheads.org/wiki/I_Savings_Bonds I have to admit I sometimes forget to look to the wiki first, but it is a good starting point for many questions. Yes, I did check the Wiki yesturday, but the Wiki did not specifically address whether or not the trust had the same SSN as the individual. The Wiki does not seem to address a few quesions about IBond raised by mikep (in the other thread, how awkward to try to bring them together now . . .) Everything should be titled in the trust if you have one to achieve benefits outlined by the tru...
by starboard
Fri May 20, 2011 10:58 am
Forum: Personal Investments
Topic: buying paper i bonds- TD mail order
Replies: 18
Views: 3475

. . . Can you do this? Yes. See the answer from TD in this post: http://www.bogleheads.org/forum/viewtopic.php?p=1025657#1025657 The trust is considered a different person than the individual, even though the trust uses the same social security number. The trick is here: § 359.3 What special terms do I need to know to understand this part? Person means an entity including an individual, trust, estate, corporation, government entity, association, partnership, and any other similar organization. Person does not mean a Federal Reserve Bank. A trust is a person and an individual is a person, but they are separate persons. §359.29 What amount of definitive Series I savings bonds may I purchase per year? The principal amount of definitive Series...
by starboard
Fri May 20, 2011 10:26 am
Forum: Personal Investments
Topic: buying paper i bonds- TD mail order
Replies: 18
Views: 3475

sscritic- damn, you basically did everything for me. Thank you so much! Its greatly appreciated. I was confused about the heading on the TD page http://www.treasurydirect.gov/indiv/research/indepth/ibonds/res_ibonds_ibuy.htm because it says the annual limitation is 5k per social security per year since 2008. But if you just click on the press release it explains 5k/electronic 5k/paper. Really bizarre and confusing wording, in my opinion. Please clarify for me: I understand that someone can purchase a total of $10,000 in IBonds per year if half of that is a paper bond and half is electronic. In this case, both would be linked to the same SSN. I have also heard that you can purchase an additional $10,000 in IBonds (again split with half pape...
by starboard
Fri May 13, 2011 2:13 pm
Forum: Personal Consumer Issues
Topic: prepaid cell phones
Replies: 33
Views: 4784

I use T-Mobile and like their gold rewards status. I bought my phone for less than $30 and I bought a $100 card which gave me gold status. The minutes on the $100 card last for 1 yr but unused minutes will be renewed if I buy another refill card at any dollar value. If I have 900 minutes after 11 months, I can buy a $10 card and the 900 minutes will be good for another year. http://www.t-mobile.com/promotions/genericregular.aspx?passet=Pro_Pro_GoldRewards Here's is a thread called "Which pre-paid cell phone is the cheapest for a low volume user?" http://www.bogleheads.org/forum/viewtopic.php?p=318556 I'm in my first year of the T-Mobile $100/1000 minutes rate. It looks like I'll have about 600 minutes ($60) left at the end of the...
by starboard
Thu Mar 03, 2011 2:01 pm
Forum: Personal Finance (Not Investing)
Topic: Use a bad 457 Plan or just pay taxes and invest?
Replies: 13
Views: 1784

Call TIAA-CREF and see if Mrs. Chad would be eligible.

I understood that TIAA-CREF accounts are available for almost
anyone employed in the education system. Given that there is
no employer match, TIAA-CREF accounts may be an option for you.

stb
by starboard
Sun Jan 02, 2011 9:26 am
Forum: Personal Investments
Topic: Does Admiral Shares convert back to Investor shares?
Replies: 4
Views: 2363

It's my understanding that you will only be demoted back to Inv. as a result of selling shares from the fund to below the Adm. level; market price changes shouldn't cause demotion... I asked about Admiral shares in a phone call to Vanguard on December 15, 2010. I was told that accounts are automatically evaluated for conversion to Admiral shares quarterly, and they are automatically evaluated for downgrade from Admiral shares in June. Funds will be converted from Admiral shares to Investor shares if the market value of the fund falls below the threshold for that fund (either $10,000 or $50,000). I was not sure about this so I asked again if the conversion was based solely on market value or would only occur if market value dropped and shar...
by starboard
Sun Dec 26, 2010 2:16 pm
Forum: Investing - Theory, News & General
Topic: What's Your Allocation to High Yield Bonds?
Replies: 80
Views: 11591

theac wrote: $15K Hi Yield Tax Ex Muni in Taxable Acct
This High Yield Tax Exempt (HYTE) Vanguard bond fund seems to be a different
critter than what has been the topic of this thread. I am wondering about
VWAHX or the Admiral shares version VWALX for part of a taxable account.
These funds are:
AAA 8.2%
AA 32.1%
A 35.1%
BBB 15.9%
lower than that totals 8.7% (BB 0.7%, B 1.8%, NR 6.2%)

Vanguard classifies both HYCB and VWAHX as risk catagory 3 which would
suggest similarities, however the VWAHX yields are 3/4 to 2/3 that of HYCB.
Do these HYTE funds make sense as less than 16% of a taxable account allocation
to bonds? Or would those that rule out HYCB also rule out HYTE?

stb
by starboard
Thu Dec 09, 2010 12:30 pm
Forum: Investing - Theory, News & General
Topic: Don't "buy" the dividend?
Replies: 18
Views: 3721

Re: Don't "buy" the dividend?

I looked at the historical data only to try to understand the
relevance of the three dates: Record, Reinvest and Payable.

hsv_climer: you are absolutely right, I was seeing NAV dependent
on factors other than dividends distribution.
Tramper Al wrote: . . . avoid timing your purchase such that you do not incur an unnecessary tax burden. This is certain and clear, and all else being equal you are only better off doing so. Compared to buying earlier and reinvesting the distribution, you end up in the same place. You just trade an immediate tax burden (bad) for a lower cost basis (much less bad).
Tramper Al: thanks for clarifying bad vs. much less bad. It seems the
best plan would be to invest on the Reinvest Date

stbd
by starboard
Thu Dec 09, 2010 11:57 am
Forum: Investing - Theory, News & General
Topic: Don't "buy" the dividend?
Replies: 18
Views: 3721

Don't "buy" the dividend?

I got curious about NAV and looked up the dates:

One TR20xx fund shows
Record Date 12/29/2009, $11.65
Reinvest Date 12/30/2009, $11.38
Payable Date 12/31/2009, $11.31

Low point 02/08/2010, $10.99

So, history may not repeat, but it looks like Payable Date
was the best opportunity at the end of 2009.

stbd
by starboard
Thu Dec 09, 2010 10:56 am
Forum: Investing - Theory, News & General
Topic: Don't "buy" the dividend?
Replies: 18
Views: 3721

Don't "buy" the dividend?

hsv_climber: thank you for your help on this.

One TR20xx fund shows
Record Date 12/29/2009
Reinvest Date 12/30/2009
Payable Date 12/31/2009

I am a little confused by the terminology, which of these dates
would yield the lowest NAV? Obviously, any purchase would
take place after the 4 pm market close of a given day.

stbd
by starboard
Thu Dec 09, 2010 10:10 am
Forum: Investing - Theory, News & General
Topic: Don't "buy" the dividend?
Replies: 18
Views: 3721

Don't "buy" the dividend?

I have read advise to avoid buying a fund just before it makes a distribution. As we approach year end, when many TR20xx funds make their distribution, I am seeking a better understanding of the logic behind this rule of thumb. I propose the following scenario: an investor has 100k parked in a savings account earning 1%. He or she wants to put all of the 100k into a TR20xx fund in a taxable account soon. Assume this TR20xx fund will make a distribution on December 30 of $2,400 for an investment of $100k. The investor could make the fund purchase on December 10, or wait until January 5 of 2011. If purchased Dec 10, then the investor will receive the distribution just after purchase, and may well be taxed on $2,400 at something near their nor...
by starboard
Sat Aug 29, 2009 5:56 pm
Forum: Personal Investments
Topic: When to hold'em, when to fold'em?
Replies: 13
Views: 2288

JW Nearly Retired wrote:
starboard wrote: In some threads I have read statements that make it sound very much like "hurry to harvest the loss before the market goes up"
Yes, you should hurry if the market is going up. You will sell and book the loss and then the replacement equity you buy will go up with the market roughly like the orginal would have. You can literally have your cake and eat it too.
JW
JW, thanks for clarifying this. It was not something that was very obvious to me.

Pete
by starboard
Sat Aug 29, 2009 3:46 pm
Forum: Personal Investments
Topic: When to hold'em, when to fold'em?
Replies: 13
Views: 2288

Two easy decisions. (1) Do tax loss harvest and (2) don't take SS early. TLH by selling and immediately buying a similar but not "substantially identical" fund is a true no-brainer. You really have no market risk. RE: (2) Since you don't need the income now, defer SS as long as possible. If you wait until 70, your monthly checks thereafter will be 76% higher then if you had started early at 62. JW Thanks JW, I'll plan on waiting on SS, and will strongly consider bailing on the Dreyfus accounts and re-investing in TR 2015. Yes, dodging the annuity salesman, and his 1% fee to manage a portfolio was a fortunate event for us. The question is "If you didn't own the mutual fund now, would you buy it?" If not, sell it. If yes,...
by starboard
Sat Aug 29, 2009 2:40 pm
Forum: Personal Investments
Topic: When to hold'em, when to fold'em?
Replies: 13
Views: 2288

Re: When to hold'em, when to fold'em?

bdpb wrote:
starboard wrote: Drawing Social Security early could add about $1K per month in about a year.
If you don't need the income and don't have a shortened life expectancy,
you should consider delaying SS until 70.
Yes, as long as the income is not needed, I plan to delay filling for SS.
It sounds as though drawing early then paying back later can be a frustrating process.

Pete
by starboard
Sat Aug 29, 2009 2:38 pm
Forum: Personal Investments
Topic: When to hold'em, when to fold'em?
Replies: 13
Views: 2288

livesoft wrote:This is an easy decision once you get over loss aversion: Sell all now and invest in your Vanguard 2015 TR fund.

My understanding is that you have no IRAs whatsoever. Is that true?
livesoft, thanks for the input.

Strange but true, I have no IRA accounts. Why is it best to sell
these assets now, rather than wait until December? Sorry to be
so dense, but is buy and hold not applicable when stacked up against
a questionable investment? There must be a part of Tax Loss Harvesting
that I'm just not getting.

Pete
by starboard
Sat Aug 29, 2009 12:00 pm
Forum: Personal Investments
Topic: When to hold'em, when to fold'em?
Replies: 13
Views: 2288

When to hold'em, when to fold'em?

Here is a little background info about me: I had a close encounter with a local financial planner who wanted to sell me a variable annuity, and put me into a managed portfolio. Fortunately, I was reading Bogle's "The Little Book of Common Sense Investing" at the time, and was able to cancel out of the close encounter. As a result of this experience, I am proceeding with more caution now. I recently went through the Vanguard Financial Planning process, and with their blessing, ended up investing about 60% of total assets in the Vanguard Target Retirement 2015 fund (VTXVX). The remaining 40% of assets is in savings or CDs. I'm 61, retired since 2005, in the 15% tax bracket, with current expenses covered by a state sponsored defined ...
by starboard
Fri Aug 28, 2009 7:37 pm
Forum: Personal Investments
Topic: SImple question regarding Vanguard Target Retirement funds.
Replies: 12
Views: 4608

gt4715b wrote:Essentially daily as new cash comes in. I don't know what the rebalancing bands are in times of severe market drops when the incoming cash isn't enough to get back to the target asset allocation.
I think that people tend to overlook the potential tax efficiency
that can come from using new money to rebalance a Target Retirement fund.

New money might not be a comfortable option for someone mimicking a Target
Retirement fund on their own.

Pete
by starboard
Wed Jul 08, 2009 6:48 pm
Forum: Personal Investments
Topic: Automatic reinvestment not recommended in Taxable Account?
Replies: 49
Views: 7715

Mel, Could you please offer a few more details about this, or provide a simple example? I'm not following the part about "already paid taxes on an annual basis all of the reinvested distributions". How would this alter cost basis when the holding is sold? Thanks, Pete Hi Pete: Whether you reinvest your distributions or take them as cash, you owe and pay taxes each year on those distributions. However, many folks forget to add those distributions to their original cost basis. So, when they sell a holding that they originally invested $10,000 in for $15,000, they erroneously claim a gain of $5,000 on their income tax, since they forgot to add the distributions to their cost basis. They may well have had hundreds of even thousands i...
by starboard
Wed Jul 08, 2009 2:26 pm
Forum: Personal Investments
Topic: Automatic reinvestment not recommended in Taxable Account?
Replies: 49
Views: 7715

Mel,

Could you please offer a few more details about this, or provide a simple example? I'm not following the part about "already paid taxes on an annual basis all of the reinvested distributions". How would this alter cost basis when the holding is sold?

Thanks,
Pete
by starboard
Mon Jul 06, 2009 6:00 pm
Forum: Personal Investments
Topic: Difficulty in posting
Replies: 2
Views: 907

Good, I needed a chance to post a reply.

Thanks,
Pete