Search found 4726 matches

by House Blend
Wed Jun 24, 2020 6:57 pm
Forum: Personal Investments
Topic: Never-Ending Foreign Tax Credit Problem
Replies: 104
Views: 12333

Re: Never-Ending Foreign Tax Credit Problem

A significant option in this scenario (early retirement/low taxes/limited ability to claim FTC/unable to successfully carryforward) is to increase your Roth conversion target so that more/all of the FTC can be claimed. ....snip.... Thank you for pointing out the strategy of increasing your Roth con...
by House Blend
Wed Jun 24, 2020 1:58 pm
Forum: Investing - Theory, News & General
Topic: Market timing liquid TIAA Traditional
Replies: 9
Views: 713

Re: Market timing liquid TIAA Traditional

With Vanguard total bond SEC yield at 1.4 and TIAA Trad (fully liqud GSRA version) returning a guaranteed 3% , is there an opportunity for market timing? Specifically, let's say someone put 100% of their bond allocation into the fully liquid version of TIAA CREF Traditional right now (guaranteed mi...
by House Blend
Wed Jun 24, 2020 1:49 pm
Forum: Investing - Theory, News & General
Topic: Market timing liquid TIAA Traditional
Replies: 9
Views: 713

Re: Market timing liquid TIAA Traditional

Most importantly, some TIAA clients who plan to annuitize would not want to do this in the ten or twenty years before retirement. They may have TIAA Traditional "vintages" that are paying more than 3% (and having a larger annuitization yield), and whenever they take money out of TIAA Traditional, i...
by House Blend
Sun Jun 21, 2020 8:56 pm
Forum: Personal Investments
Topic: Tax Efficiency of US vs. International. Do Section 199a Dividends change things?
Replies: 4
Views: 479

Re: Tax Efficiency of US vs. International. Do Section 199a Dividends change things?

So bottom line...if all else is equal, could the benefit of Section 199a Dividends in US funds out weigh the benefit of the Foreign Tax Credit with International funds? No. In 2019, 5.85% of the dividends distributed by VTSAX were eligible for Sec 199A treatment. As a result, this deduction saved a...
by House Blend
Tue Jun 16, 2020 8:39 am
Forum: Investing - Theory, News & General
Topic: Best ETF or mutual fund that doesn’t pay dividends or distributions?
Replies: 24
Views: 1398

Re: Best ETF or mutual fund that doesn’t pay dividends or distributions?

How about an ETF or mutual fund that has such a high expense ratio that the dividends are sucked away and shareholders don't get them? Whether the dividends provide a net to the investor or not, as long as the underlying security paid it, the mutual fund owner will pay taxes on it. If the dividend ...
by House Blend
Mon Jun 15, 2020 8:31 am
Forum: Investing - Theory, News & General
Topic: Any reason for 5% cash in a long-term portfolio?
Replies: 58
Views: 4846

Re: Any reason for 5% cash in a long-term portfolio?

If the stock market closed for six months, the cash might be useful. Are you keeping this cash in your mattress? If stock market is closed for 6 months, what makes you think you could get cash out of your MM fund, or even your bank account? I only have a nominal amount in my MMF now anyway (moved i...
by House Blend
Sun Jun 14, 2020 8:39 am
Forum: Investing - Theory, News & General
Topic: Tax loss harvesting
Replies: 59
Views: 3342

Re: Tax loss harvesting

I had an issue with a wash sale a couple years ago. I sold a fund that had auto reinvested dividends within the prior 30 days, and my brokerage said I had a disallowed loss of $1.XX. After further reading ( link ) I don't think this was an actual wash sale, because it wasn't a purchase of replaceme...
by House Blend
Sat Jun 13, 2020 7:18 pm
Forum: Personal Investments
Topic: Center of Gravity 30/70: How do you allocate the bond portion?
Replies: 6
Views: 958

Re: Center of Gravity 30/70: How do you allocate the bond portion?

Here's how I set up Mom's 30/70 portfolio back in 2011: 21% US Stocks 9% International Stocks 40% Intermediate Bonds [currently, Total Bond + Intermediate Tax Exempt] 18% Short Bonds [currently, Limited Term Tax Exempt] 12% TIPS [currently, VAIPX] Her IRA is 100% bonds (TIPS + Total Bond). The muni ...
by House Blend
Sat Jun 13, 2020 10:07 am
Forum: Investing - Theory, News & General
Topic: Tax loss harvesting
Replies: 59
Views: 3342

Re: Tax loss harvesting

I had an issue with a wash sale a couple years ago. I sold a fund that had auto reinvested dividends within the prior 30 days, and my brokerage said I had a disallowed loss of $1.XX. After further reading ( link ) I don't think this was an actual wash sale, because it wasn't a purchase of replaceme...
by House Blend
Sat Jun 13, 2020 9:38 am
Forum: Investing - Theory, News & General
Topic: How does Vanguard calculate taxes on widely diversified bond funds?
Replies: 16
Views: 800

Re: How does Vanguard calculate taxes on widely diversified bond funds?

I have had 3 different accountants over the years and I always simply handed them the Vanguard forms. I sure hope they took care of it for me. Would you say that accountants are aware of this? I spoke to Vanguard today and they said all I need to do is bring my accountant the form. They said I don’...
by House Blend
Sun Jun 07, 2020 10:16 am
Forum: Investing - Theory, News & General
Topic: Anyone not bother with Tax Loss Harvesting?
Replies: 116
Views: 7265

Re: Anyone not bother with Tax Loss Harvesting?

Your comments re-iterate a total myth that seems to linger here on Bogleheads.org and other places still. I just don't know why this falsehood keeps popping up. The reality is that all brokerages nowadays keep track of your lots, your unrealized capital gains/losses, your buy/sell dates, and your r...
by House Blend
Sun Jun 07, 2020 9:04 am
Forum: Investing - Theory, News & General
Topic: Anyone not bother with Tax Loss Harvesting?
Replies: 116
Views: 7265

Re: Anyone not bother with Tax Loss Harvesting?

Your comments re-iterate a total myth that seems to linger here on Bogleheads.org and other places still. I just don't know why this falsehood keeps popping up. The reality is that all brokerages nowadays keep track of your lots, your unrealized capital gains/losses, your buy/sell dates, and your r...
by House Blend
Sun Jun 07, 2020 9:00 am
Forum: Investing - Theory, News & General
Topic: Anyone not bother with Tax Loss Harvesting?
Replies: 116
Views: 7265

Re: Anyone not bother with Tax Loss Harvesting?

Beyond the $3k, I don't TLH on unrealized losses. All that does is adjust cost basis aka defer the same ultimate CG taxes. As discussed at length in this thread your statement is not quite true. And even if it were always true, there is value in postponing "the same ultimate CG taxes". If a $10,000...
by House Blend
Sat Jun 06, 2020 3:51 pm
Forum: Personal Consumer Issues
Topic: What Movie Have You Recently Watched?
Replies: 5566
Views: 1361406

Re: What Movie Have You Recently Watched?

300 Miles to Heaven (1989), available to stream on Netflix. A touching film out of Poland, supposedly based on a true story. Two young brothers (ages 11? and 14?) in a struggling family seek to escape Poland, find work, and help their parents. They manage to stow away in the undercarriage of a truc...
by House Blend
Sat Jun 06, 2020 9:00 am
Forum: Investing - Theory, News & General
Topic: June 2020 Distributions
Replies: 7
Views: 1087

Re: June 2020 Distributions

For Vanguard mutual funds, all the dates are here:
https://advisors.vanguard.com/insights/ ... tributions
by House Blend
Mon Jun 01, 2020 10:16 am
Forum: Investing - Theory, News & General
Topic: Tax loss harvesting
Replies: 59
Views: 3342

Re: Tax loss harvesting

Besides the $3k income offset, Is there any advantage to _actively_ selling stock just to TLH? So, you are dismissing the value of postponing CG taxes? Suppose that a large fraction of your taxable account will be passed on to your beneficiaries, or donated to charity. If you harvest enough losses ...
by House Blend
Sun May 31, 2020 9:31 am
Forum: Investing - Theory, News & General
Topic: Tax loss harvesting
Replies: 59
Views: 3342

Re: Tax loss harvesting

You can do $3k a year but it carries over. So if you TLH $9k this year you can deduct $3k this year, $3k next year, and $3k the year after that. As a total newbie in this regard.... I only got a brokerage in January this year, and have never had capital gains/losses on my tax return before. A coupl...
by House Blend
Sun May 31, 2020 8:53 am
Forum: Investing - Theory, News & General
Topic: Tax loss harvesting
Replies: 59
Views: 3342

Re: Tax loss harvesting

Besides the $3k income offset, Is there any advantage to _actively_ selling stock just to TLH? So, you are dismissing the value of postponing CG taxes? Suppose that a large fraction of your taxable account will be passed on to your beneficiaries, or donated to charity. If you harvest enough losses ...
by House Blend
Sat May 23, 2020 7:58 pm
Forum: Personal Investments
Topic: TIAA Annuity Help understanding Contact Language
Replies: 23
Views: 1485

Re: TIAA Annuity Help understanding Contact Language

It's what the gurantee is that I am confused about since the RC fact sheet says one thing and the rep something else. If TIAA documentation says one thing and a TIAA rep says another, then the rep is wrong. Or you are reading the wrong documentation. Re-dial and hope that the next rep you reach is ...
by House Blend
Fri May 15, 2020 9:09 am
Forum: Investing - Theory, News & General
Topic: Under the hood: Vanguard's Muni Bond Funds
Replies: 5
Views: 864

Re: Under the hood: Vanguard's Muni Bond Funds

^All else being equal (including cost), what makes active management compelling to me is that the ratings of individual muni issues can at times be unreliable. Perhaps corporates have the same problem, but I don't have an opinion on that either way. I have no allocation to corporate bonds other than...
by House Blend
Tue May 12, 2020 8:45 am
Forum: Investing - Theory, News & General
Topic: Adjust Asset Allocation when 90 or older?
Replies: 21
Views: 1473

Re: Adjust Asset Allocation when 90 or older?

Mom will be 87 this month. Ten years ago, I set up her 30/70 investment portfolio. About 3 years ago, stock gains blew past the 5% rebalancing bands I had imposed, but her drawdown rate and life expectancy were low enough that it no longer made sense to pay the capital gains tax (and high state tax)...
by House Blend
Fri Apr 24, 2020 8:27 pm
Forum: Personal Finance (Not Investing)
Topic: RMD waived for 2020. Alternate strategy
Replies: 14
Views: 1073

Re: RMD waived for 2020. Alternate strategy

My strategy is just to take the tax reduction due to my RMD being waived. That's what we'll do with Mom's non-RMD; i.e., do nothing. (Or rather that's what we'll do for most of it, since she has several tax deferred accounts, some of which have automatic RMDs. It's not worth the bother to try to un...
by House Blend
Thu Apr 16, 2020 8:57 pm
Forum: Personal Consumer Issues
Topic: [What TV Show Have You Recently Watched?]
Replies: 1953
Views: 212062

Re: [What TV Show Have You Recently Watched?]

We've tried to watch "The Wire" a few times, can't get past the first episode. People say you have to power through the first few episodes, but we haven't been able to. It's definitely up my alley genre wise. FWIW, I started with Season 2, and didn't have any trouble getting hooked. Each new season...
by House Blend
Thu Apr 02, 2020 8:04 pm
Forum: Personal Consumer Issues
Topic: What Movie Have You Recently Watched?
Replies: 5566
Views: 1361406

Re: What Movie Have You Recently Watched?

^Is there a Sharpe's Ratio?
by House Blend
Thu Mar 19, 2020 9:15 am
Forum: Investing - Theory, News & General
Topic: Mechanics of ETF gain/loss distributions?
Replies: 2
Views: 144

Re: Mechanics of ETF gain/loss distributions?

For example if I’m distributed a gain I assume I have to pay tax on it - does my broker then adjust my cost basis by that amount, or does it become some sort of bookkeeping headache for me going forward? What about losses? Funds do not distribute losses. They do sometimes have to distribute capital...
by House Blend
Wed Mar 18, 2020 9:13 pm
Forum: Personal Finance (Not Investing)
Topic: Federal Form W-4
Replies: 8
Views: 452

Re: Federal Form W-4

That's what I did, but I already knew how much I wanted withheld. Not everyone is in that boat.

If you don't know, I guess you have to use the online estimator. My impression is that it is error-prone.
by House Blend
Wed Mar 18, 2020 8:39 pm
Forum: Personal Finance (Not Investing)
Topic: Federal Form W-4
Replies: 8
Views: 452

Re: Federal Form W-4

Currently and for a couple years I have claimed 4 federal exemptions. I'd like about $60 less per pay period to be withheld. On the current W-4 there isn't an option for exemptions. How do I engineer the form so that I have $XXX withheld from each pay period? Yes, allowances are gone. If you alread...
by House Blend
Mon Mar 16, 2020 9:43 am
Forum: Investing - Theory, News & General
Topic: Keeping Dividends Qualified after TLH
Replies: 15
Views: 1461

Re: Keeping Dividends Qualified after TLH

Let’s say I bought VTSAX on 2/24/20 and want to TLH 30 days from then. The record date for the VTSAX dividend is 3/24/20. Does the 61 day rule apply to the lot purchased on 2/24 only, or on ALL prior lots of VTSAX as well. Each share sold has a holding period. For shares that you owned 61 days or m...
by House Blend
Mon Mar 16, 2020 9:35 am
Forum: Investing - Theory, News & General
Topic: How Vanguard calculates wash sale disallowed
Replies: 5
Views: 595

Re: How Vanguard calculates wash sale disallowed

I'd like to understand how the disallowed wash sales computed by Vanguard work. Is it by law that Vanguard has to do it like this? Is the same with other brokers? Here's the rule that everyone has to follow: You order the shares you sold at a loss from oldest to newest. You order the replacement sh...
by House Blend
Thu Mar 12, 2020 8:16 pm
Forum: Personal Finance (Not Investing)
Topic: Useful limit to the carryover total from Tax-Loss Harvesting?
Replies: 4
Views: 420

Re: Useful limit to the carryover total from Tax-Loss Harvesting?

I know that I could still use those losses to offset capital gains down the road, but what if offsetting those gains is of minimal use? My current plan is to be in the 0% LTCG bracket (federal and state) after a few more years. In that situation, many people are looking to tax-gain harvest, and my ...
by House Blend
Thu Mar 12, 2020 9:38 am
Forum: Investing - Theory, News & General
Topic: When to Tax Loss Harvest?
Replies: 48
Views: 3252

Re: When to Tax Loss Harvest?

If an additional investment is made to an ETF, the entire position is sold at a loss ten days later, and no substantially identical shares are purchased within thirty days after the sale, is it the case that no "wash sale" would have occurred since no replacement shares were obtained? Or, would the...
by House Blend
Thu Mar 12, 2020 9:20 am
Forum: Investing - Theory, News & General
Topic: Vanguard First Quarter 2020 distribution schedule
Replies: 26
Views: 1673

Re: Vanguard First Quarter 2020 distribution schedule

When are Total Us / Total INT dividends do? As mentioned earlier in this thread... All we know so far is that dividends for those mutual funds will be declared on either March 19, 24, 26, or 30. I've seen no information about the dates for the corresponding ETF share classes. In practice, it means ...
by House Blend
Wed Mar 11, 2020 8:50 am
Forum: Investing - Theory, News & General
Topic: Vanguard First Quarter 2020 distribution schedule
Replies: 26
Views: 1673

Re: Vanguard First Quarter 2020 distribution schedule

Last week, Vanguard posted an article listing *supplemental* fund distribution dates for March. This only affects a handful of funds. https://investornews.vanguard/estimated-supplemental-fund-distributions/ However, I just now noticed that the article mentions Besides the funds listed in the PDF, se...
by House Blend
Wed Mar 11, 2020 8:14 am
Forum: Investing - Theory, News & General
Topic: Vanguard First Quarter 2020 distribution schedule
Replies: 26
Views: 1673

Re: Vanguard First Quarter 2020 distribution schedule

This is a huge disservice on Vanguard's part to not give advance warning of upcoming dividend dates. It has the potential to affect any (taxable) investor holding Vanguard funds at any brokerage, not just VBS. :oops: . At least people don't have to pay very much for such poor customer service. Not ...
by House Blend
Wed Mar 11, 2020 8:06 am
Forum: Investing - Theory, News & General
Topic: Vanguard First Quarter 2020 distribution schedule
Replies: 26
Views: 1673

Re: Vanguard First Quarter 2020 distribution schedule

I noticed this morning VSIAX already distributed its dividend, that's much earlier in March than usual. Holy cow. This is a huge disservice on Vanguard's part to not give advance warning of upcoming dividend dates. It has the potential to affect any (taxable) investor holding Vanguard funds at any ...
by House Blend
Tue Mar 10, 2020 11:50 am
Forum: Personal Finance (Not Investing)
Topic: Should federal tax return forms be stapled to each other? Or not?
Replies: 47
Views: 3254

Re: Should federal tax return forms be stapled to each other? Or not?

Why do they need W2's these days? You don't attach them when filing electronically. There are a few states that are already on board with this: you don't include any Forms W-2 or 1099 even when you paper file. So perhaps we'll see that in the "What's New" section of the instructions for the Form 10...
by House Blend
Mon Mar 09, 2020 5:03 pm
Forum: Personal Investments
Topic: What day/time can I TLH to capture today's losses?
Replies: 15
Views: 1003

Re: What day/time can I TLH to capture today's losses?

How can I know when to (and whether to) TLH? Any insight would be very much appreciated. 1. Watch the ETFs. Everybody and their uncle has a website that shows intraday price charts of ETFs (and stocks). So you can look up VTI, VV, and VEU (the ETF versions of VTSAX, VLCAX, and VFWAX) to see how muc...
by House Blend
Sun Mar 08, 2020 9:23 pm
Forum: Personal Investments
Topic: Automatic dividend reinvestment
Replies: 11
Views: 1166

Re: Automatic dividend reinvestment

If Fund A and Fund B have the same dividend dates, it doesn't matter much. You'll get a similar dividend either way. The dividends themselves will reduce the price per share of both funds, but there's a chance that the loss might disappear or shrink the longer you wait. If there is a separation betw...
by House Blend
Sun Mar 08, 2020 10:32 am
Forum: Personal Investments
Topic: Automatic dividend reinvestment
Replies: 11
Views: 1166

Re: Automatic dividend reinvestment

No reason to wait on the TLH sale unless the wash sale window is involved, or the holding period for QDI hasn't been met. I was assuming purchases into Fund A every 30 days. I TLH the entire balance on day 45. Isn't the entire amount ineligible for QDI status? No. If you are TLHing up to 60 days af...
by House Blend
Sat Mar 07, 2020 9:02 pm
Forum: Personal Investments
Topic: Automatic dividend reinvestment
Replies: 11
Views: 1166

Re: Automatic dividend reinvestment

Not sure I understand your question. So you have a loss in Fund A. You harvest into Fund B. The next monthly purchase (assuming the asset class represented by Funds A and B is the one still lagging) will be Fund B. No reason to wait on the TLH sale unless the wash sale window is involved, or the hol...
by House Blend
Sat Mar 07, 2020 8:28 pm
Forum: Personal Investments
Topic: Automatic dividend reinvestment
Replies: 11
Views: 1166

Re: Automatic dividend reinvestment

What works for me is 1. Don't use funds in taxable that you also have in tax-advantaged. 2. Don't auto-reinvest divs in taxable. 3. One new purchase in taxable per month. Only one fund, whatever is lagging. If it is a month with dividends, then the purchase date is adjusted to match when the dividen...
by House Blend
Sat Mar 07, 2020 2:35 pm
Forum: Investing - Theory, News & General
Topic: When to TLH?
Replies: 18
Views: 1038

Re: When to TLH?

^Right.
by House Blend
Sat Mar 07, 2020 2:29 pm
Forum: Investing - Theory, News & General
Topic: When to TLH?
Replies: 18
Views: 1038

Re: When to TLH?

Let's say I bought 100 shares on day 1. On day 40, they produce a dividend that I take as cash. On day 50, I sell the 100 shares. No wash sale, but the dividend is now ordinary income. Right. It's ordinary income even if you sold at a gain. Will Vanguard report all dividends as qualified even if th...
by House Blend
Sat Mar 07, 2020 1:41 pm
Forum: Investing - Theory, News & General
Topic: When to TLH?
Replies: 18
Views: 1038

Re: When to TLH?

Can somebody shed some light on the issue of losing qualified dividend status? Say you own 100 shares of Fund X. Those shares produce a qualified dividend. Then you sell those 100 shares. Whether you sold at a loss or a gain, the dividend from those 100 shares will lose their qualified status if yo...
by House Blend
Sat Mar 07, 2020 1:27 pm
Forum: Investing - Theory, News & General
Topic: When to TLH?
Replies: 18
Views: 1038

Re: When to TLH?

Go ahead and do it, and see if it is worth it. +1 this is the answer. There is literally no harm in trying it out and seeing how it feels. Then you can return to this thread or post a new one and tell us the definitive answer. For you. Agreed. I'd estimate it takes 3 minutes or less for me to log o...
by House Blend
Fri Mar 06, 2020 8:50 am
Forum: Investing - Theory, News & General
Topic: Simple Tax Loss Harvesting approach... feedback requested
Replies: 10
Views: 528

Re: Simple Tax Loss Harvesting approach... feedback requested

So, for the sake of simplicity, I am planning on simply selling VTIAX (Total International Index) and buying VTSAX (Total US Index) to maintain my overall percentage to equity holdings. Then when the 30 days is up, I'll just rebalance to my original Asset Allocation. The one problem I have with tha...
by House Blend
Wed Mar 04, 2020 9:58 pm
Forum: Personal Finance (Not Investing)
Topic: The SECURE Act and QCDs
Replies: 26
Views: 1443

Re: The SECURE Act and QCDs

If instead you use QCDs (as soon as they are available) for some or all of it, it is not counted as income, so it is like getting a deduction for charitable contributions even though you use the standard deduction. No. If you are eligible for QCDs and not taking RMDs (which is what this thread is a...
by House Blend
Wed Mar 04, 2020 6:34 pm
Forum: Personal Finance (Not Investing)
Topic: The SECURE Act and QCDs
Replies: 26
Views: 1443

Re: The SECURE Act and QCDs

I If you are already giving to an eligible charity, and do not itemize, you do not get a deduction for that. If instead you use QCDs (as soon as they are available) for some or all of it, it is not counted as income, so it is like getting a deduction for charitable contributions even though you use...
by House Blend
Wed Mar 04, 2020 9:33 am
Forum: Investing - Theory, News & General
Topic: How much tax loss harvesting is your robo-advisor doing lately?
Replies: 19
Views: 2006

Re: How much tax loss harvesting is your robo-advisor doing lately?

The thing about losses is they become progressively less valuable. The first $3K are very valuable, but then it goes down from there. Given my account size now, I've got enough losses from the last 6 months that I may not benefit from much more tax loss harvesting for a decade or two. So even if Be...
by House Blend
Wed Mar 04, 2020 9:29 am
Forum: Investing - Theory, News & General
Topic: How much tax loss harvesting is your robo-advisor doing lately?
Replies: 19
Views: 2006

Re: How much tax loss harvesting is your robo-advisor doing lately?

But if the service is going to generate that "extra" return that they claim, Those "extra return" claims are marketing nonsense. There's a good chance that the shares you buy today with cash can be loss-harvested one or more times in the future, but the chance that the equity shares you bought 10 y...