Search found 114 matches

by desconhecido
Wed Jan 05, 2022 1:53 pm
Forum: Personal Finance (Not Investing)
Topic: Please double check my concrete thinking re: RMD's
Replies: 40
Views: 6481

Re: Please double check my concrete thinking re: RMD's

My understanding: Turn 72 in 2027. First RMD is based on value at the end of 2026 and you use the divisor for age 72. You must take this RMD no earlier than Jan 1, 2027 and no later than Apr 1, 2028. 2d RMD you take during year 2028 using the value at the end of 2027 and divisor for age 73. Might be a good idea to take the first distribution during 2027 to prevent a bigger tax hit in 2028. Depends on your finances. If you try to take the first distributiion in 2026, I don't think the IRS will allow it as an RMD. As far as I know, you don't have to tell Vanguard anything -- just take the distribution as normal and include it in your ordinary income. Vanguard has requirements to give you information but, as far as I know, no requirement to ke...
by desconhecido
Wed Jan 05, 2022 1:32 pm
Forum: Investing - Theory, News & General
Topic: “Closed end funds yielding 10%…” please help me understand?
Replies: 17
Views: 3591

Re: “Closed end funds yielding 10%…” please help me understand?

I've had various CEFs over the years and have had pretty good success with them -- total return comparable to VTI. As mentioned earlier, the costs are typically high and they are pretty opaque instuments, at least to me. Their common use of leverage is a factor.

Anyway, after screwing around for years trying to make my fortune I found that I could pretty much get the same returns with VTI or VOO with almost none of the work so I've been tapering. Down to less than 5% cefs and will probably be cef free within the year.
by desconhecido
Wed Jan 05, 2022 12:38 pm
Forum: Personal Investments
Topic: Vanguard alternative: Fidelity or Schwab?
Replies: 17
Views: 2714

Re: Vanguard alternative: Fidelity or Schwab?

Moving from Vanguard to Schwab was very easy. As mentioned in earlier threads, they agreed to handle Vanguard funds without the purchase fee and readily agreed to a transfer bonus -- didn't really have to ask for it, just sort of mentioned that I'd heard of such things and they agreed with alacrity. Offered to give us margin credit at about 2.5% and we considered it as there are some situations where it would be nice but in the end declined as it's just not necessary or desireable -- borrowing to invest is just not what we do. The web interface is a great improvement over Vanguard though it's probably pretty basic. But that's fine, want to look at letters and numbers, not a pinball machine. There is a trader interface available, but haven't...
by desconhecido
Wed Jan 05, 2022 11:52 am
Forum: Personal Investments
Topic: Does Wash Sale Rule apply across Brokers ?? Please help
Replies: 17
Views: 1931

Re: Does Wash Sale Rule apply across Brokers ?? Please help

RyeBourbon wrote: Wed Jan 05, 2022 11:44 am
desconhecido wrote: Wed Jan 05, 2022 10:12 am Wash sale rule applies across brokers and across accounts (IRA, Taxable).
It also applies across spouses. If you sell and your spouse purchases, there might be a wash sale.
Yes. Forgot about that one. Of all the ways to accidentally create a wash sale, that's the only one I haven't tried.
by desconhecido
Wed Jan 05, 2022 10:18 am
Forum: Personal Investments
Topic: Does Wash Sale Rule apply across Brokers ?? Please help
Replies: 17
Views: 1931

Re: Does Wash Sale Rule apply across Brokers ?? Please help

There is little harm in the long run if you repurchased shares in a regular, taxable account, because then the tax benefit of the capital loss is deferred, not gone forever. If you repurchased shares in a tax-advantaged account, the tax benefit may be gone forever. Yes, the capital loss may be deferred rather than lost, but it might also be converted from a short term loss to a long term loss depending on the details. Sometimes this is important, other times not so much. In my experience, deferring the capital loss is not nearly as big of a deal as trying to keep track of it all if the situation is complicated at all. Of course, having a wash sale in a taxable account because of a purchase in an IRA is no fun at all because in all probabil...
by desconhecido
Wed Jan 05, 2022 10:12 am
Forum: Personal Investments
Topic: Does Wash Sale Rule apply across Brokers ?? Please help
Replies: 17
Views: 1931

Re: Does Wash Sale Rule apply across Brokers ?? Please help

Wash sale rule applies across brokers and across accounts (IRA, Taxable). If one of your sales looks to be a loss and you have purchased replacement shares within the window, you may not be able to deduct the loss. It can get complicated. If none of the sales is a loss, you don't have a problem at all. The brokers won't prevent you fro the wash sale rule nor will they assess a penalty -- their obligation is reporting which you will see on your 1099, if you have a wash sale. The brokers will not reconcile your purhases and sales across the accounts (except multiple accounts at the same broker) so it is up to you to keep track of those transactions which might be wash sales. In my experience, trying to keep track of the possible wash sales ca...
by desconhecido
Mon Dec 27, 2021 7:04 pm
Forum: Personal Investments
Topic: Taking a disribution from IRA
Replies: 8
Views: 772

Re: Taking a disribution from IRA

I think your question may be: If you have a transaction within your IRA that loses $100, can you withdraw $100 from your IRA without incurring a tax obligation on that $100 withdrawal. If that is your question, the answer is no. The IRA is sort of like Las Vegas -- what happens there stays there and nobody knows about it (except for wash sales, perhaps). The only time that any IRA transaction is important to the taxman (as he cometh) is a withdrawal. Any withdrawal you make from the IRA is taxed as ordinary income -- plus, it may increase the taxable amount on your SS if you are not at the maximum. From your explanation, I infer that your taxable SS income is probably about $40,000 and that you have, additionally, about $16k capital gains/ ...
by desconhecido
Mon Oct 18, 2021 7:17 pm
Forum: Investing - Theory, News & General
Topic: Planning for a crash like 1929?
Replies: 253
Views: 29405

Re: Planning for a crash like 1929?

If I can't retire until I'm prepared to withstand an 89% drop in asset prices, then I'll never retire. Nor will anyone else on this forum. At some point, you need to take a leap of faith. You can only plan for so much. This put it into perspective for me; "... Consider the implications of the above 97% success rate at a withdrawal of $2,500 per month ($30,000 per year). For this to be a useful estimate of your true chance of not running out of money, the "success rate" of your ambient political, economic, and military environment must be at least 97% over this 40-year period. Do you think that this is likely? Only if you are an historical illiterate ... " The Retirement Calculator from Hell, Part III: Eat, Drink, and Be...
by desconhecido
Mon Oct 18, 2021 7:06 pm
Forum: Investing - Theory, News & General
Topic: Planning for a crash like 1929?
Replies: 253
Views: 29405

Re: Planning for a crash like 1929?

My planning assumption is that one day the US stock market will go to zero and that it'll happen after I'm dead. I'm not sure about the second part. But it would certainly not require the level of disaster that some seem to think for that to happen. In fact, most people would likely survive it, as they survived the collapse of other equity markets. But if you are severely injured by a 30% drawdown, that's just poor planning. You should certainly expect that to happen, pretty often. A 60% drawdown is quite a bit more unlikely, but not an unreasonable assumption, especially in real terms. I'll just have to learn to like Alpo in that scenario because I'm unwilling to generate a portfolio that can endure that. It would mean many more years of ...
by desconhecido
Mon Oct 18, 2021 6:47 pm
Forum: Investing - Theory, News & General
Topic: Planning for a crash like 1929?
Replies: 253
Views: 29405

Re: Planning for a crash like 1929?

If I can't retire until I'm prepared to withstand an 89% drop in asset prices, then I'll never retire. Nor will anyone else on this forum. At some point, you need to take a leap of faith. You can only plan for so much. This put it into perspective for me; "... Consider the implications of the above 97% success rate at a withdrawal of $2,500 per month ($30,000 per year). For this to be a useful estimate of your true chance of not running out of money, the "success rate" of your ambient political, economic, and military environment must be at least 97% over this 40-year period. Do you think that this is likely? Only if you are an historical illiterate ... " The Retirement Calculator from Hell, Part III: Eat, Drink, and Be...
by desconhecido
Sat Oct 16, 2021 6:45 pm
Forum: Personal Investments
Topic: Is Vanguard so bad?
Replies: 402
Views: 46634

Re: Is Vanguard so bad?

No Vanguard is not so bad. They have some faults, but they are not as bad as some posters have indicated. Some people just like to complain. Perhaps some of them have other reasons to put Vanguard in a bad light. Ah, the evergreen Bogleheads.org response to any complaint about Vanguard, an attack on the person rather than dealing with facts. Decide for yourself if I "just like to complain" or have some ulterior motive: https://www.bogleheads.org/forum/viewtopic.php?t=261539 OP, you don't have to hold Vanguard funds at Vanguard. The indexing operation is great, the brokerage operation is bottom of the barrel. Vanguard has made clear they have basically zero interest in retail customers unless they pay for PAS. Given that you can b...
by desconhecido
Sat Oct 16, 2021 6:32 pm
Forum: Personal Investments
Topic: Is Vanguard so bad?
Replies: 402
Views: 46634

Re: Is Vanguard so bad?

Vanguard has become too much like a 'parent that knows better than its children'. They will not allow their investors to buy leveraged funds, for instance. Even if I don't want to own leveraged funds, I don't want my broker to tell me what I can and cannot buy with my own money. Investors shouldn't expect these restrictions to end with leveraged funds either; that kind of mindset can lead to all sorts of restrictions. But (good) parents often DO know better than children. It's only with age and experience that children (hopefully) realize that their parents had the best interests of their children at heart all along. And I say this as a child, not a parent. If Vanguard were a parent helping someone with financial decisions it might be appr...
by desconhecido
Sat Oct 16, 2021 6:21 pm
Forum: Investing - Theory, News & General
Topic: Close IRA within 60 days?
Replies: 32
Views: 2134

Re: Close IRA within 60 days?

Looks like SPAXX is a money market fund. Just some place that Fidelity parks your money until you invest it in something else. Vanguard does the same thing. When you invest, money comes out of SPAXX. When you get a dividend(from VOO, EG) that's wherre it goes. In order to withdraw cash, you probably need to move it into SPAXX first and then to someplace you can actually get your hands on it. "FMT CO CUST IRA" wag: Fidelity Management Company Custodian For Benefit Of YOU. I don't understand the details of how these things work, but my understanding is that traditional IRAs held in brokerages are officially in the brokerage company's name as a custodian. It's nothing to worry about, it's just a function of the accounting rules dicta...
by desconhecido
Thu Oct 07, 2021 12:57 pm
Forum: Personal Consumer Issues
Topic: [Should I ditch] Google Chrome[?]
Replies: 77
Views: 7734

Re: Are Bogleheads ditching Google Chrome

flyingcows wrote: Thu Oct 07, 2021 10:42 am ...

Do you use a Windows PC? Unless your really ontop of things and regularly wipe and reinstall Windows, worrying about chrome browser is pennywise and pound foolish.
With W10 installed and properly maintained, what's your concern with security? Making your email text only will eliminate most threats though it's occasionally inconvenient.
by desconhecido
Thu Sep 09, 2021 3:34 pm
Forum: Personal Investments
Topic: Once you open taxable you’re married forever
Replies: 54
Views: 12755

Re: Once you open taxable you’re married forever

pshonore wrote: Thu Sep 09, 2021 10:59 am Last time I looked, brokers do not transfer fractional shares of ETFs or individual stocks. (Its possible that the recent changes allowing purchase of fractional shares has changed that). Otherwise that could mean a sale of fractional shares when transferring and cap gain/losses. Not a significant dollar amount for sure but more bookkeeping work at tax time.
The way things are now with consolidated broker statements and the omnibus net proceeds summaries, sales of securities are pretty easy to report. Just look at the form from the broker and enter a total for long term and a total for short term and then go play golf.
by desconhecido
Thu Sep 09, 2021 3:27 pm
Forum: Personal Investments
Topic: Once you open taxable you’re married forever
Replies: 54
Views: 12755

Re: Once you open taxable you’re married forever

TropikThunder wrote: Sat Sep 04, 2021 3:19 am
lazynovice wrote: Wed Sep 01, 2021 8:11 pm What’s the significance of the 500k?
That's how much you need to switch to Fisher Investments. :P
! :shock:
by desconhecido
Thu Sep 09, 2021 3:14 pm
Forum: Personal Finance (Not Investing)
Topic: Was not converting to Roth a good idea?
Replies: 188
Views: 16086

Re: Was not converting to Roth a good idea?

Here's the problem. Let's say you're 62 and will start taking RMDs in 10 years. If you convert $100,000 (is that large conversion?) to Roth and assume a discount rate of about 7%, when you're 72, you will have decreased the future gross value of your tIRA by $200,000. That will reduce your first RMD by about $7300 and you will save taxes on that at whatever rate you encounter. In order to get that tax savings in 10 years, you have to pay, depending on your current income level, probably in excess of $20,000 taxes. Today. It doesn't really matter whether you pay for it out of the Roth money or you take out a second mortgage to pay for it -- it's still $20k. All this to save taxes on $7.3k income in 10 years. If you're 62 and have no taxable...
by desconhecido
Thu Sep 09, 2021 2:48 pm
Forum: Personal Finance (Not Investing)
Topic: What provides larger returns? Residential rental real estate or s&p 500 index fund?
Replies: 49
Views: 7111

Re: What provides larger returns? Residential rental real estate or s&p 500 index fund?

gougou wrote: Tue Sep 07, 2021 7:43 pm Some research have shown that US single family rentals have had un-levered annual returns of 8.5% (varied depending on cities) for decades. So if an investor can maintain a 4x leverage at 4% cost, that's going to generate a 20%+ annual return.
https://www.housingriskresearch.com/wp- ... s-2018.pdf

Probably unfair to compare to an un-levered S&P 500 index fund but I'm not sure if there are any ways to use leverage on S&P 500 safely.
Buy calls. Safe to the extent that your possible loss is known up front.
by desconhecido
Thu Sep 09, 2021 2:41 pm
Forum: Personal Finance (Not Investing)
Topic: Was not converting to Roth a good idea?
Replies: 188
Views: 16086

Re: Was not converting to Roth a good idea?

I don't think many people on here advocate doing large Roth conversions that cause large tax bills. I guess that depends on what you mean by "many people". There are definitely many posts/threads where that is advocated. Sometimes justifiably, others that leave one scratching their heads. You must not be reading the same threads I do. It is a choice of paying some of the taxes now or later. What would be your tax rate now and what would it be later? Do you think today's historically tax rates will always stay that way? I'd be curious what threads your seeing and your interpretation - I'll go up and examine this thread, maybe people are saying that. But, if I make $200k a year and I have $400k in an IRA, I'm assuming nobody on her...
by desconhecido
Thu Sep 09, 2021 1:57 pm
Forum: Personal Finance (Not Investing)
Topic: Was not converting to Roth a good idea?
Replies: 188
Views: 16086

Re: Was not converting to Roth a good idea?

In retrospect, given the huge stock market gains over the past decade, I suspect not paying huge taxes up front for the Roth conversion probably will work to my advantage in the long run, since I have made so much money (compounded) in the stock market on what would have been the taxes I would have had to pay the government had I converted in past years. Does that make sense? No, it does not make sense. If the tax rate does not change, it is better to convert. Consider $1000, a tax rate of 20%, and an investment that increases your money tenfold before you have to withdraw it to pay your expenses. If you convert it to a Roth, you must pay upfront tax of $200. Pay the tax from other money, not from the Roth balance ( crucial point ). Put th...
by desconhecido
Thu Sep 09, 2021 1:29 pm
Forum: Investing - Theory, News & General
Topic: Are ETFs the future?
Replies: 78
Views: 6449

Re: Are ETFs the future?

I have no doubt that ETFs do have advantages-- for providers . It is one more case of a company successfully transferring risk to the customer. To be sure it is an almost negligible amount of risk, which might (or might not) be compensated by an almost negligible lower expense ratio. In both cases the amounts are microscopic and do nothing but provide grist for absolutist arguments. "ETFs are less expensive." Yeah, how much less? And is that even true of ETFs in general any more, given the increasing amount of money being investing in ETFS with stunning expense ratios like 0.75%? ...ETFs have steadily been gaining market share and I can't think of a good reason why they won't eventually dominate... It is a fact that they have bee...
by desconhecido
Tue Sep 07, 2021 2:19 pm
Forum: Personal Investments
Topic: Preferred Stocks for income?
Replies: 8
Views: 1318

Re: Preferred Stocks for income?

Every time I talk with my brother-in-law I begin to question my Boglehead methodology because he makes his investment strategy appear so superior. He considers owning mutual funds and bonds nothing short of blasphemy, yet loves ETF's and Preferred Stocks. He raves about getting 6% dividends on his preferreds, but when I analyze them in Portfolio Analyzer, they look terrible to me. One example has a negative 0.77% CAGR and 22% volatility since 2004 (for no dividend reinvestment) and +7% CAGR with dividend reinvestment. I've heard/read many times that dividend paying stocks have no inherent advantage since the stock price decreases by the dividend amount and you can do just as well by selling shares of other stocks/funds when you need them. ...
by desconhecido
Mon Sep 06, 2021 12:56 am
Forum: Personal Finance (Not Investing)
Topic: Raising Chickens, Tax deductions, fencing.
Replies: 22
Views: 2813

Re: Raising Chickens, Tax deductions, fencing.

. . . The IRS is quite skeptical about "hobby-farming" enterprises in general. If the IRS deems your activities to be a hobby, they will disallow all expense deductions. If you want to take deductions for anything at all (cost of the chicks, feed, etc., let alone fencing), you need to be prepared to demonstrate to the satisfaction of the IRS that you are operating a bona fide business in a business-like manner with the primary goal of making a profit. See below for a discussion of the Nine Factor test the IRS uses to distinguish between business expenses (deductible) and hobby activity expenses (not deductible.) https://ruraltax.org/files-ou/Farm_Losses_vs_Hobby_Losses.pdf But, expenses incurred generating hobby income are deduct...
by desconhecido
Mon Sep 06, 2021 12:45 am
Forum: Personal Investments
Topic: Quick Question regarding Bonds in Taxable
Replies: 6
Views: 1097

Re: Quick Question regarding Bonds in Taxable

I don't understand that advice. Dividends from bond funds will typically be taxed as ordinary income. It's possible that the fund may spit out some long term capital gains as a result of sales within the fund and, clearly, these would be reported as capital gains distributions and taxed accordingly. As for reinvesting the dividends, seems like reinvesting any dividends to me. You end up with a new lot which will have it's own cost basis and purchase date. If you want to avoid short term gains, if you need to sell some shares, don't sell the ones subject to STCG. Avoiding wash sales with the bond funds, it seems to me, would be the same as with any security. Unless I'm missing something -- always possible. In any event, purchases made throug...
by desconhecido
Fri Sep 03, 2021 3:30 pm
Forum: Investing - Theory, News & General
Topic: Investment Approach to counter Hyperinflation and USD Collapse
Replies: 127
Views: 11960

Re: Investment Approach to counter Hyperinflation and USD Collapse

So, what investment to help people prosper during the coming economic collapse? Perhaps find some way to short coastal real estate.
by desconhecido
Fri Sep 03, 2021 2:45 pm
Forum: Investing - Theory, News & General
Topic: Investment Approach to counter Hyperinflation and USD Collapse
Replies: 127
Views: 11960

Re: Investment Approach to counter Hyperinflation and USD Collapse

secondopinion wrote: Fri Sep 03, 2021 9:56 am
livesoft wrote: Fri Sep 03, 2021 6:28 am Just save more money now and outfit your home with solar power, a garden, some chickens, and a source of water. I don't see how investing can help with the proposed scenario. Don't repeat "got killed".
Durable goods of all kinds is an important hedge. I have some, and that is what I can do. Honestly, it is more or less what can be done (aside from self-sustaining commodities and tangible skills); the thread is not very actionable otherwise.
Durable goods? Like what, invest in refrigerators?
by desconhecido
Fri Sep 03, 2021 2:39 pm
Forum: Investing - Theory, News & General
Topic: Investment Approach to counter Hyperinflation and USD Collapse
Replies: 127
Views: 11960

Re: Investment Approach to counter Hyperinflation and USD Collapse

I’ve been investing for about 20 years now. Goldbugs have always been banging the hyperinflation drum. Today’s cryptobugs are pretty much parroting what goldbugs were saying 20 years ago. Predictions of the imminent demise of the American financial system have much longer history. Howard Ruff was giving bad investment advice dating back to the mid 70s. Joe Granville was predicting collapse of the markets at least from the late 70s. Granville predicted every market downturn by being the world's preeminent perennial bear. Back in 81 he was earning somewhere between $2.5mm and $3mm from his newsletter of bad advice; back when a dollar was still worth 50 cents. "From 1980 through January 2005, Granville’s stock picks for investors lost 0....
by desconhecido
Thu Sep 02, 2021 3:07 pm
Forum: Personal Finance (Not Investing)
Topic: High per month retirement withdrawals?
Replies: 42
Views: 5533

Re: High per month retirement withdrawals?

I am curious to see if anyone withdraws or is planning/forced via RMD to withdraw more per month in retirement than current income? If so, how do you deal with taxes? Though we are not there yet, I feel like our retirement accounts are growing rather rapidly than anticipated. It's definitely a great problem to have but I fear that we may end up in a higher tax bracket due to lack of deductions in the future like mortgage deductions, child credits etc. Should we slow down retirement savings? I have seen the famous Mad Fientiest article that talks about saving in the retirement accounts vs taxable, so I am hesitant to slow down retirement savings. We already save via Taxable as well to potentially bridge to the retirement age if we decide to...
by desconhecido
Thu Sep 02, 2021 2:25 pm
Forum: Personal Finance (Not Investing)
Topic: High per month retirement withdrawals?
Replies: 42
Views: 5533

Re: High per month retirement withdrawals?

. . . A lot of the concern with Roth conversions is about the higher tax rates for the survivor (with no decrease in RMDs) after the first spouse dies. I understand that and it's true that a surviving spouse will face an increased tax rate on the RMDs. But, if, for example, the average tax rate on the RMD is 32%, that's still just 1.1% on the tIRA value. It's fun to complain about and nobody likes paying taxes for stuff they don't approve of, and people seem to disapprove of most government spending, but it won't affect my lifestyle, should I be unfortunate enough to be the survivor, and it shouldn't affect the lifestyle of most people in the 32% to 35% brackets. But, yes, it makes more sense to do Roth conversions when considering higher ...
by desconhecido
Thu Sep 02, 2021 2:09 pm
Forum: Personal Finance (Not Investing)
Topic: High per month retirement withdrawals?
Replies: 42
Views: 5533

Re: High per month retirement withdrawals?

So you believe that your RMDs plus Social Security (and any other income taxed as ordinary income) will actually be larger than your income while working? It will be for us by about 28% compared to income while working. But, when RMDs kick in it will triple our current taxable income (SS + pension) exclusive of LTCG and qualified dividends (controllable). Roth conversions are an option for some, but I never could convince myself that a 20% tax hit on (for example) $150k could justify reducing future RMDs by $6k or so. Of course, the computation can get complex when you consider the advantage of growth in a Roth compared to a tIRA. Our strategy, or lack there of, is to suck it up and pay the taxes. As for timing, it's my intention to take t...
by desconhecido
Thu Sep 02, 2021 1:22 pm
Forum: Personal Finance (Not Investing)
Topic: High per month retirement withdrawals?
Replies: 42
Views: 5533

Re: High per month retirement withdrawals?

So you believe that your RMDs plus Social Security (and any other income taxed as ordinary income) will actually be larger than your income while working? It will be for us by about 28% compared to income while working. But, when RMDs kick in it will triple our current taxable income (SS + pension) exclusive of LTCG and qualified dividends (controllable). Roth conversions are an option for some, but I never could convince myself that a 20% tax hit on (for example) $150k could justify reducing future RMDs by $6k or so. Of course, the computation can get complex when you consider the advantage of growth in a Roth compared to a tIRA. Our strategy, or lack there of, is to suck it up and pay the taxes. As for timing, it's my intention to take t...
by desconhecido
Thu Sep 02, 2021 12:45 pm
Forum: Personal Finance (Not Investing)
Topic: How Do You Transfer Larger Amount Funds Between Institutions?
Replies: 33
Views: 6365

Re: How Do You Transfer Larger Amount Funds Between Institutions?

My experience with ACH transfers among USAA, Vanguard, Schwab and Chase has been trouble free. Last july, transferred $380k from Schwab to Vanguard via USAA in $25k to $50k chunks with no problem. Question: How did you get $25-50k thru using USAA w/o a problem? I looked closely at USAA a couple years ago. I looked closely at USAA a couple years ago and was pretty disappointed. They limit online initiated electronic transfer (ACH) to linked outside institutions to $5k/day. That was on their website at the time and confirmed by phone. Now their website says to 'call' to find out the limit. I did - and it's still $5k/day as of today. USAA on tellers checks gave me contradictory information initially but ultimately confirmed they no longer do ...
by desconhecido
Sun Aug 29, 2021 12:04 am
Forum: Investing - Theory, News & General
Topic: Vanguard website appearance
Replies: 22
Views: 2638

Re: Vanguard website appearance

I'm fine with Vanguard's old site which works reasonably well on a computer with a large monitor. What I don't like is their new sites which are designed to work the same way on a 6" phone and a 42" monitor. Their new sites such as this one are awful for my purposes as I don't use a phone to view Vanguard's website. https://investor.vanguard.com/investment-products/list/etfs I agree, that's terrible. But, I've never seen it before. And, of course, I hope to never see it again. When I go to look at Vanguard ETFs, I see: https://investor.vanguard.com/etf/list#/etf/asset-class/month-end-returns Don't know how to get to the display you refer to, other than by clicking your link. edit: Oh, there's a link to that god awful display. Rem...
by desconhecido
Fri Aug 27, 2021 2:58 pm
Forum: Personal Investments
Topic: Trying to understand if this is a tax deed or tax lien sale
Replies: 4
Views: 711

Re: Trying to understand if this is a tax deed or tax lien sale

There is a pdf "Tax Sales Procedures" at the link with a lot of info. Conveyance is by "quit claim" deed. Maybe see a lawyer and incur some title search expenses before you bid.
by desconhecido
Fri Aug 27, 2021 1:13 pm
Forum: Personal Consumer Issues
Topic: Replacing an electric panel
Replies: 73
Views: 8226

Re: Replacing an electric panel

^^^ The Boglehead-approved procedure is to have a licensed electrician do the replacement (1) so that your home meets the electrical code and won't be denied insurance coverage if anything happens as a result and (2) ensures no unplanned trips to the hospital if you don't have experience working with power. We must be reading different Boglehead forums - ??? Replacing the main breaker or the entire load center in an occupied home can only be done by a licensed electrician, because it requires shutting off power at the street. Generally utilities will not do that unless the requestor is licensed. I think pulling the meter would do the trick, but same rules apply. You need permission to pull the meter and the power company will, no doubt, re...
by desconhecido
Fri Aug 27, 2021 1:01 pm
Forum: Personal Investments
Topic: Just starting to learn investing: how do I get a high yearly return?
Replies: 14
Views: 2406

Re: Just starting to learn investing: how do I get a high yearly return?

If I understand correctly, you have 29% in an investment grade bond fund, 49% in an index fund (S&P ?), some cash, some Apple and Disney. If you want to juice your return without abandoning your 40% "safe", consider the added risk of holding a portion of your equities in something like QQQ or VGT or VUG or VWUAX. Personally, I'd rather have money (18%) in a risky etf than in a Disney/Apple mix (and I do). Or you can go full metal ARK or just buy lottery tickets.
by desconhecido
Thu Aug 26, 2021 11:28 am
Forum: Personal Consumer Issues
Topic: Replacing an electric panel
Replies: 73
Views: 8226

Re: Replacing an electric panel

I had an hvac person tell me recently I should have an electrician look at my electric panel / upgrade circuit breakers in the garage to tell me if it is adequate for today’s appliances, hvac system etc. My home was built mid 80’s and I’m curious if this is a legitimate issue that could cost me either money or safety? Mid 80s might still be in the Federal Pacific sweet spot. If gross current is 100 amps, you might want to bump it up, but maybe not if it's adequate. Federal Pacific panels and breakers are the worst. Both failure modes were common -- they wouldn't trip reliably with over current and they would trip falsely when current wasn't over the rating. So, after market breakers which would supposedly solve the problems came on the mar...
by desconhecido
Wed Aug 25, 2021 7:57 pm
Forum: Personal Investments
Topic: I am seriously contemplating abandoning the ARK
Replies: 101
Views: 18594

Re: I am seriously contemplating abandoning the ARK

. . . As a personal example, I have been in QQQ for the past 15 years instead of SPY. I have huge accumulated outperformance and can hold on for years if some bad thing happens. But you have to be prepared for a period of underperformance. Comparing QQQ to SPY is an interesting exercise if you select different start dates. Even start dates seemingly close together can give strikingly different results. Compare (using portfoliovisualizer, eg) the results to the present for a start date of June 30, 2000 to the results from June 30, 2001. The differences are because QQQ fell by about 50% during that year compared to -15% for SPY. Going back 15 years to July 31, 2005 we have selected a start date with QQQ down 57% compared to SPY down -15%. Do...
by desconhecido
Mon Aug 23, 2021 1:52 pm
Forum: Personal Finance (Not Investing)
Topic: Strategy: RV Financing
Replies: 14
Views: 1721

Re: Strategy: RV Financing

With that much equity, perhaps a cash-out refi would work. You'd get a nice rate and you'd avoid the tax issues associated with an IRA withdrawal. I understand the idea of doing it with cash from the IRA and 36 month financing, but 5.75%, that's going to give me nightmares just thinking about it.
by desconhecido
Sun Aug 22, 2021 8:42 am
Forum: Investing - Theory, News & General
Topic: Why I'm leaving Vanguard
Replies: 220
Views: 38220

Re: Why I'm leaving Vanguard

2cents2 wrote: Sun Aug 22, 2021 8:09 am . . .

We recently did a rollover from Vanguard to Fidelity for which there was a little kerfuffle and I can't decide if it was my fault, Fidelity's or Vanguards. (Or, all 3 of us). So, I will just call that one a tie.
Could you explain this a bit? Are you referring to a trustee-trustee transer of one of the rollovers?

We had a boatload of fun last year trying to do transfers from USAA and Schwab. Most, I believe, was caused by USAA, but I never could figure out why the transfer from Schwab to Vanguard failed. One problem with Vanguard that I'm aware of is that whover entered the data from my request to whatever Schwab needed entered wrong symbols.
by desconhecido
Thu Aug 19, 2021 10:48 pm
Forum: Investing - Theory, News & General
Topic: I do not understand why I should compare mortgage to bonds
Replies: 72
Views: 9586

Re: I do not understand why I should compare mortgage to bonds

Keep doing what you're doing. I have 29 years left on my mortgage. Bonds may only be yielding 1.5% or whatever over the next 6-7 years, but rates could go much higher in the future. What if they go to 5%? It could certainly be enough to beat the mortgage rate over the entire 29 year period even if they lose out in the early years. What people are recommending is short sighted and a form of market timing and is especially irresponsible if they don't consider risk tolerance and liquidity concerns. It's much cheaper to hold a mortgage now than it is to get money out of a house later. There is risk either way. If you pay off your mortgage, you could end up being cash poor in the future but with greatly reduced expenses. If you don't pay early,...
by desconhecido
Thu Aug 19, 2021 8:27 pm
Forum: Investing - Theory, News & General
Topic: Is selling vaguard mutual fund and buying ETF a wash sale?
Replies: 56
Views: 4697

Re: Is selling vaguard mutual fund and buying ETF a wash sale?

My read of IRS Pub 550 leads me to believe a share of VTSAX and a share of VTI are substantially similar (they are literally share classes of same fund), and subject to wash sale rules. Whether it would be reported by Vanguard as such (highly doubted) or questioned by IRS is uncertain. Read the publication yourself and let us know your thoughts. Personally, I do not consider funds from different providers that track the same index as substantially similar securities. In the latter case the companies have different index replication/sampling approaches amongst other things. What does substantially "similar" have to do with the discussion on wash sales? Are you trolling my incorrect use of “similar” where “identical” was appropriat...
by desconhecido
Thu Aug 19, 2021 2:16 am
Forum: Personal Investments
Topic: Roth conversions after rmd has begun
Replies: 31
Views: 5184

Re: Roth conversions after rmd has begun

The RMD must happen before the Roth conversion. Why? [edit: I'm finding several financial planning websites which assert that RMDs must be the first distributions of the year, but haven't found an explanation of these assertions. Is there an IRS reference?] Ok, I think I've found the answer: 26 CFR § 1.402(c)-2 (https://www.law.cornell.edu/cfr/text/26/1.402%28c%29-2) Explanation that sort of makes sense to me: http://www.marottaonmoney.com/roth-conversion-take-your-required-minimum-distribution-out-first/ Looks as though the rule exists to prevent taxpayers from taking an apparently taxable distribution and subsequently rolling it over IAW the 60 day rule and also to make sure nobody does a taxable Roth conversion and tries to slip it into...
by desconhecido
Wed Aug 18, 2021 8:35 am
Forum: Personal Investments
Topic: 100% VTSAX (I know I know, but can't seem to get a clear answer)
Replies: 55
Views: 9647

Re: 100% VTSAX (I know I know, but can't seem to get a clear answer)

I am 100% VTI myself. 3500 companies, I think I am well diversified Ok, 3500 companies. But, how independent are the performances of these 3500 companies? That's not a question that I have an answer for, but my wag is that the conditions that would be a threat to the share values of some would be a threat to the share values of many and that the diversification provided is largely illusory. This sort of thing played out during the crash of 2007-2009 because many of the people evaluating the risks of CDOs believed that diversification of market areas provided more diversification of default risk than it actually did. That is, there was more correlation of default risk among the loans underlying these derivatives than was accounted for. Just...
by desconhecido
Wed Aug 18, 2021 8:08 am
Forum: Personal Investments
Topic: How long before Vanguard fixes $11m mistake in DW's favor?
Replies: 59
Views: 8927

Re: How long before Vanguard fixes $11m mistake in DW's favor?

If you had a $200 "Bank Error in Your Favor" back in 1935 and were able to realized 13.5% totl return for 86 years, you would have about $11E6, or so. S&P return since 1935 has been about 11.(insert unjustified fraction here)%. Should have bought QQQ instead of VOO.

edit: https://www.officialdata.org/us/stocks/ ... dYear=2021
by desconhecido
Wed Aug 18, 2021 12:43 am
Forum: Personal Investments
Topic: Looking for a fund that throws out very little taxable income
Replies: 8
Views: 1446

Re: Looking for a fund that throws out very little taxable income

delamer wrote: Tue Aug 17, 2021 10:02 pm You could try Berkshire Hathaway. No dividends and it owns some international companies.
And go with Fidelity where you can buy fractional shares.
by desconhecido
Tue Aug 17, 2021 1:38 pm
Forum: Personal Investments
Topic: Moving Roth IRA from CD to “cash position.” Is this a “rollover”?
Replies: 8
Views: 1386

Re: Moving Roth IRA from CD to “cash position.” Is this a “rollover”?

Alan S. wrote: Tue Aug 17, 2021 9:43 am For an IRA to IRA transaction, a direct rollover does not apply. It is either a non reportable direct transfer (best choice) or a 60 day reportable distribution and rollover.

The term "direct rollover" only applies if a qualified plan is either the receiving plan or the distributing plan. A direct rollover is reported with code G or H, but otherwise is handled as a transfer.
Makes sense to me. Thanks.
by desconhecido
Tue Aug 17, 2021 3:36 am
Forum: Investing - Theory, News & General
Topic: Clients searching for yield? Consider corporate bond ETFs
Replies: 30
Views: 3197

Re: Clients searching for yield? Consider corporate bond ETFs

Many of the bond including funds discussed here (eg BND) include at least some investment grade corporate bonds. Some, like Vanguard Total Corporate Bond ETF (VTC) are all that. Perhaps there is a bit of increased risk compared to government bonds in the event of a severe market decline, but personally, I don't think it's a big deal. Indeed, I am of the opinion that the credit risk associated with lower quality investment grade bonds and higher rated junk bonds is a risk (again, in my opinion) worth taking. Especially with bonds with relatively short time to maturity.
by desconhecido
Tue Aug 17, 2021 3:21 am
Forum: Personal Investments
Topic: Moving Roth IRA from CD to “cash position.” Is this a “rollover”?
Replies: 8
Views: 1386

Re: Moving Roth IRA from CD to “cash position.” Is this a “rollover”?

Apparently, there are three ways to get your money from one IRA to another without incurring any tax liability. 1. Trustee to trustee transfer. This is probably the most common and cleanest way to do this. We've transferred a number of accounts this way and all that was required was setting it up through the receiving trustee (creating an account, etc) and letting them handle it. All holdings (including cash) can be transferred, if the receiving institution is willing to hold the security, or just a designated part can be transferred. There is no limit to the number of trustee to trustee transfers that can be done per year. Some securities won't transfer: dead issues (old GM bonds/warrants,eg), non-brokered cds, some mfs, perhaps other thin...
by desconhecido
Sun Aug 15, 2021 11:00 am
Forum: Investing - Theory, News & General
Topic: In Dream was Told To Invest in Dividend Stocks with Increasing Dividend
Replies: 40
Views: 4818

Re: In Dream was Told To Invest in Dividend Stocks with Increasing Dividend

jeffyscott wrote: Sun Aug 15, 2021 10:27 am I think your chart is wrong. Morningstar shows dividend appreciation losing to the S&P 500 (VFIAX) over that time frame:
Perhaps the S&P doesn't include dividends.

Just messed with this a bit in portfoliovisualizer and if you take various 5 to 10 year intervals from the start of the data in late 2006 to the end of July, you can easily get either VYM or VIG to look better. Interesting is that over the entire data, VIG and SPY come out very close at the end. Over the last 5 and 10 year periods, VIG has done better.

Here's an article which discusses VIG and VYM and their differences and also several other dividend etfs.:https://www.optimizedportfolio.com/vig-vs-vym/