Search found 42 matches

by lm
Wed Dec 04, 2019 5:53 pm
Forum: Investing - Theory, News & General
Topic: Using more than one brokerage
Replies: 32
Views: 1666

Re: Using more than one brokerage

TI have read posts from people who have accounts scattered all over the place -- some taxable, some not -- at numerous brokerages and they don't really have any idea what their overall AA is. To find out they would have to check each brokerage individually, then weight them. I have NEVER read of an...
by lm
Thu Apr 25, 2019 2:12 pm
Forum: Investing - Theory, News & General
Topic: Fidelity MF dividends all non-qualified?
Replies: 2
Views: 484

Re: Fidelity MF dividends all non-qualified?

Thank you! Now that I looked for it, I noticed the disclaimer at the bottom of the website: Qualified dividend and post-May 5 capital gain income that may be taxable at the reduced rates introduced by the Jobs and Growth Tax Relief Reconciliation Act of 2003 (JAGTRRA) may not yet be separately repor...
by lm
Thu Apr 25, 2019 2:01 pm
Forum: Investing - Theory, News & General
Topic: Fidelity MF dividends all non-qualified?
Replies: 2
Views: 484

Fidelity MF dividends all non-qualified?

I own the Fidelity stock funds FSKAX (Total Market Index Fund) and FSPSX (International Index Fund) in a taxable account. Both funds distributed dividends on April 12th. In previous years, the majority of those dividends were qualified. However, if I go to "View your YTD tax activity" on the Fidelit...
by lm
Fri Jan 25, 2019 2:11 pm
Forum: Investing - Theory, News & General
Topic: Schwab liquidates bond fund SWIIX
Replies: 5
Views: 1227

Schwab liquidates bond fund SWIIX

I got a letter from Schwab notifying me that the intermediate-term bond fund SWIIX will be liquidated by the end of February. Over the next month the fund will shift towards cash, and will then distribute the proceeds to shareholders. The fund's operating expenses (ER 0.45%) will be waived until the...
by lm
Wed Dec 05, 2018 4:06 am
Forum: Investing - Theory, News & General
Topic: [Understanding volatility in ultrashort bond funds]
Replies: 39
Views: 6964

Re: [Understanding volatility in ultrashort bond funds]

Now, can someone remind me just what it was that the Fidelity ultrashort bond fund was holding in 2008? From https://www.kiplinger.com/article/investing/T041-C003-S001-ultra-short-still-ultra-safe.html : So why has the fund lost close to 10% of its value since July? Co-manager Andrew Dudley, an exp...
by lm
Mon Nov 05, 2018 12:39 am
Forum: Investing - Theory, News & General
Topic: Mega backdoor Roth: Losing basis
Replies: 14
Views: 1628

Re: Mega backdoor Roth: Losing basis

Thank you all for your replies. I will call the 401k administrator (Fidelity) to find out if they keep track of the basis in the after-tax 401k.
by lm
Sat Nov 03, 2018 7:49 pm
Forum: Investing - Theory, News & General
Topic: Fidelity's FUSVX became FXAIX on Nov. 2
Replies: 6
Views: 3618

Re: Fidelity's FUSVX became FXAIX on Nov. 2

FUSEX (Investor class), FUSVX (Premium class), and FXSIX (Institutional class) are now all merged into FXAIX (Institutional premium class). Which funds merged into which is listed in Appendix A of the document linked above.
by lm
Sat Nov 03, 2018 7:43 pm
Forum: Investing - Theory, News & General
Topic: Fidelity's FUSVX became FXAIX on Nov. 2
Replies: 6
Views: 3618

Re: Fidelity's FUSVX became FXAIX on Nov. 2

Fidelity eliminated the different share classes for several of its mutual funds so that all investor now get the most favorable ER: https://www.fidelity.com/bin-public/060_www_fidelity_com/documents/mutual-funds/Fidelity-lower-expense-ratios-index-mf_FAQs.pdf For me, the lot history is still availab...
by lm
Sat Nov 03, 2018 1:36 pm
Forum: Investing - Theory, News & General
Topic: Mega backdoor Roth: Losing basis
Replies: 14
Views: 1628

Re: Mega backdoor Roth: Losing basis

The WIKI page on after-tax 401k accounts lists as one of the disadvantages when doing a Roth conversion: Losses before rollover, "basis" could be lost if you don't leave a few pennies in the account. Could someone explain what that means? I am at a total loss here. For example, one contributes $10K...
by lm
Fri Nov 02, 2018 2:05 am
Forum: Investing - Theory, News & General
Topic: Mega backdoor Roth: Losing basis
Replies: 14
Views: 1628

Mega backdoor Roth: Losing basis

The WIKI page on after-tax 401k accounts lists as one of the disadvantages when doing a Roth conversion:
Losses before rollover, "basis" could be lost if you don't leave a few pennies in the account.
Could someone explain what that means? I am at a total loss here.
by lm
Wed Jul 25, 2018 2:30 pm
Forum: Investing - Theory, News & General
Topic: TLH for absolute dummies [Tax Loss Harvesting]
Replies: 306
Views: 63153

Re: TLH for absolute dummies [Tax Loss Harvesting]

Thank you for your insights. I am surprised that this seems to be a grey area, as I feel that this should apply to a large number of people especially on this forum, which stresses simplicity and a small selection of funds. Just to make sure I understand, let me re-iterate the question: Imagine an i...
by lm
Wed Jul 25, 2018 12:57 pm
Forum: Investing - Theory, News & General
Topic: TLH for absolute dummies [Tax Loss Harvesting]
Replies: 306
Views: 63153

Re: TLH for absolute dummies [Tax Loss Harvesting]

Only IRAs have been mentioned in the IRS revenue ruling and publications as participating in wash sales. I would not worry about the other plans mentioned. Does that mean that I can sell a fund in taxable, and buy the same (or substantially similar) fund in a 401k account on the same day without tr...
by lm
Wed Jul 25, 2018 12:32 pm
Forum: Investing - Theory, News & General
Topic: TLH for absolute dummies [Tax Loss Harvesting]
Replies: 306
Views: 63153

Re: TLH for absolute dummies [Tax Loss Harvesting]

Only IRAs have been mentioned in the IRS revenue ruling and publications as participating in wash sales. I would not worry about the other plans mentioned. Does that mean that I can sell a fund in taxable, and buy the same (or substantially similar) fund in a 401k account on the same day without tr...
by lm
Fri Jul 06, 2018 3:43 pm
Forum: Investing - Theory, News & General
Topic: Fidelity cash position
Replies: 55
Views: 11490

Re: Fidelity cash position

Fidelity offer a large number of money market funds: https://www.fidelity.com/mutual-funds/fidelity-funds/overview?selectTab=6 Depending on which state you live in and on your tax bracket a municipal fund might be worth considering. For example, Massachusetts AMT Tax-Free Money Market Fund FMSXX lis...
by lm
Wed Jun 20, 2018 3:14 pm
Forum: Investing - Theory, News & General
Topic: Ex-dividend days: Is there typically anything out of the ordinary?
Replies: 34
Views: 3287

Re: Ex-dividend days: Is there typically anything out of the ordinary?

For example, if all 30 companies represented in the Dow Jones index paid a 2% dividend on the same day, would the Dow drop by 2%? In the case of the DJIA, yes. Interesting; thank you very much. I assume the same would be true for a market-cap based index like the S&P 500? Also, a follow-up a questi...
by lm
Wed Jun 20, 2018 2:48 pm
Forum: Investing - Theory, News & General
Topic: Ex-dividend days: Is there typically anything out of the ordinary?
Replies: 34
Views: 3287

Re: Ex-dividend days: Is there typically anything out of the ordinary?

I have a related question on this topic: how does the payments of dividends affect stock indices? For example, if all 30 companies represented in the Dow Jones index paid a 2% dividend on the same day, would the Dow drop by 2%?
by lm
Fri May 25, 2018 12:57 am
Forum: Personal Investments
Topic: Mega backdoor Roth to Roth 401k or Roth IRA
Replies: 9
Views: 1520

Re: Mega backdoor Roth to Roth 401k or Roth IRA

retiredjg, thank you so much for your clear explanations; they have been extremely helpful.

It seems that the combination of external Roth and traditional IRAs has a few minor advantages, but the simplicity of doing automated in-plan rollovers is very tempting. Decisions, decisions...
by lm
Thu May 24, 2018 3:39 pm
Forum: Personal Investments
Topic: Mega backdoor Roth to Roth 401k or Roth IRA
Replies: 9
Views: 1520

Re: Mega backdoor Roth to Roth 401k or Roth IRA

Thank you all for your responses; they are very helpful. My wife's 401k plan allows automatic quarterly in-plan Roth conversion of after-tax contributions, which seems very convenient. I might prefer that route just for its simplicity. I am still unsure about the ability to withdraw money from Roth ...
by lm
Thu May 24, 2018 2:57 pm
Forum: Personal Investments
Topic: Mega backdoor Roth to Roth 401k or Roth IRA
Replies: 9
Views: 1520

Re: Mega backdoor Roth to Roth 401k or Roth IRA

You can put it directly into roth IRA: https://www.bogleheads.org/forum/viewtopic.php?f=2&t=137366&p=3672947#p3672947 I am not sure I understand: I thought that since we are over the income limit we cannot contribute directly to a Roth IRA, so we would have to use one of the backdoor routes. Doesn'...
by lm
Thu May 24, 2018 1:59 am
Forum: Personal Investments
Topic: Mega backdoor Roth to Roth 401k or Roth IRA
Replies: 9
Views: 1520

Mega backdoor Roth to Roth 401k or Roth IRA

My wife’s 401k plan allows her to make unmatched after-tax contributions in addition to the matched pre-tax contributions that are limited to $18,500. These after-tax contributions can then be converted either to a Roth 401k within the same plan, or to external Roth and Traditional IRAs for contribu...
by lm
Thu Apr 19, 2018 1:52 am
Forum: Investing - Theory, News & General
Topic: The cost of maintaining stable NAV in money market funds
Replies: 5
Views: 1281

Re: The cost of maintaining stable NAV in money market funds

I guess it makes sense that FDLXX and BIL have similar yields before expenses because their holdings are essentially the same. Is the cost of the “stable NAV guarantee” then precisely the 28 basis point difference in ER between the money market fund and the ETF? Or is Fidelity just greedier than the...
by lm
Wed Apr 18, 2018 3:50 pm
Forum: Investing - Theory, News & General
Topic: The cost of maintaining stable NAV in money market funds
Replies: 5
Views: 1281

The cost of maintaining stable NAV in money market funds

A bond fund may lose value, for example due to an increase in interest rates. A money market fund guarantees stable NAV (at least ordinarily, i.e., ignoring “breaking the buck” scenarios). I assume I have to pay for that guarantee in the form of lower expected returns. But how expensive is this guar...
by lm
Wed Apr 04, 2018 5:43 pm
Forum: Personal Investments
Topic: Changing cost basis method from Average to Actual Cost
Replies: 18
Views: 2530

Re: Changing cost basis method from Average to Actual Cost

Encouraged by your comments (and a brief chat with Fidelity) I changed the cost basis method to "Actual Cost", and after a few minutes the website showed the actual cost basis for the various tax lots. Shares that were purchased in 2011 kept their average value, and apparently so did shares purchase...
by lm
Wed Apr 04, 2018 5:38 pm
Forum: Personal Investments
Topic: Changing cost basis method from Average to Actual Cost
Replies: 18
Views: 2530

Re: Changing cost basis method from Average to Actual Cost

If I do have all records before 2012, wand know the exact cost basis for every share I own, will Vanguard accept what I tell them? Vanguard doesn't care and will do nothing if you tell because they are not required to do anything. Thus you wouldn't tell them anyways. You can always specifically ide...
by lm
Wed Apr 04, 2018 12:13 pm
Forum: Personal Investments
Topic: Changing cost basis method from Average to Actual Cost
Replies: 18
Views: 2530

Re: Changing cost basis method from Average to Actual Cost

... I am not entirely sure if I ever sold a share in this account, but it is likely. ... Would not that fact be easy to look up in your historical records online at Fidelity or in your 1099-B from Fidelity or in your tax returns? Thank you for your suggestion to check the 1099-B forms. It seems tha...
by lm
Wed Apr 04, 2018 12:07 pm
Forum: Personal Investments
Topic: Changing cost basis method from Average to Actual Cost
Replies: 18
Views: 2530

Re: Changing cost basis method from Average to Actual Cost

BL wrote:
Wed Apr 04, 2018 1:45 am
I have changed mine to Specific Id so I can pick and choose which lots to sell. I believe average cost was the default.
Thank you for your reply. When you made the change, did the existing tax lots keep their average cost basis, or did they revert to their actual cost?
by lm
Wed Apr 04, 2018 12:36 am
Forum: Personal Investments
Topic: Changing cost basis method from Average to Actual Cost
Replies: 18
Views: 2530

Changing cost basis method from Average to Actual Cost

Since 2011 I have had a taxable account at Fidelity where I accumulate shares in the FSTVX (total market index fund, domestic) and FSIVX (international market index fund). During this time FSTVX went from about $40 to $80 per share. With the recent decline in stock prices I wanted to see if there mi...
by lm
Thu Oct 05, 2017 3:42 pm
Forum: Investing - Theory, News & General
Topic: Backdoor Roth: importance of spouse's tIRA
Replies: 5
Views: 794

Re: Backdoor Roth: importance of spouse's tIRA

Thank you very much for your replies. We thought that one of us will do it first, and if it's not too much hassle then the other one can do the same thing in a later year.
by lm
Thu Oct 05, 2017 2:07 pm
Forum: Investing - Theory, News & General
Topic: Backdoor Roth: importance of spouse's tIRA
Replies: 5
Views: 794

Backdoor Roth: importance of spouse's tIRA

My spouse and I both have employer-sponsered retirement accounts, and we also both have traditional IRAs that were funded with pre-tax money. I am looking into the possibility of a Backdoor Roth contribution. If I understand correctly it is recommended to roll the IRA over to an employer-sponsored a...
by lm
Mon Oct 31, 2011 1:46 pm
Forum: Investing - Theory, News & General
Topic: Bank of America already stopped selling paper I-Bonds
Replies: 13
Views: 1459

Bank of America already stopped selling paper I-Bonds

Yet another reason why I shouldn't wait until the very last minute... :oops: this morning I walked into my local Bank of America branch to buy paper I-Bonds, but the teller told me that they already stopped selling them. Just to be sure I called another branch, and was told the same thing. It looks ...
by lm
Wed Aug 03, 2011 5:00 pm
Forum: Investing - Theory, News & General
Topic: Anyone Hitting Their Bands This Week?
Replies: 45
Views: 6910

I am curious: how do you import Google Finance data into a spreadsheet? Are those the real-time quotes? Anyway here are directions to import the quotes via Google Docs spreadsheet: http://docs.google.com/support/bin/answer.py?answer=155178 And via Excel: http://www.ehow.com/how_2027266_stock-prices...
by lm
Wed Aug 03, 2011 1:28 pm
Forum: Investing - Theory, News & General
Topic: Anyone Hitting Their Bands This Week?
Replies: 45
Views: 6910

Ah, every once in a while, Google Finance has some technical issue for a day or two delivering information for one of my funds to my rebalancing spreadsheet, and one missing number throws the whole spreadsheet into displaying #N/A for all the percentages. I am curious: how do you import Google Fina...
by lm
Fri Jun 24, 2011 1:40 pm
Forum: Investing - Theory, News & General
Topic: Will bond prices decrease when interest rates go up?
Replies: 11
Views: 2443

Thank you for your replies; they give me lots to think about. Based on nisiprius's empirical example, it looks like bond prices indeed do change according to the (duration x interest rate change) rule. However, I am still puzzled why the expected future interest rate change is not incorporated into ...
by lm
Thu Jun 23, 2011 6:52 pm
Forum: Investing - Theory, News & General
Topic: Will bond prices decrease when interest rates go up?
Replies: 11
Views: 2443

Will bond prices decrease when interest rates go up?

David Grabiner made the following point in the Suze Orman thread, which I would be curious to hear other people's opinion about: I think the general argument of Suze, and other personal finance gurus, goes something like this: Interest rates are at historical lows and will eventually rise (although ...
by lm
Thu Jun 09, 2011 12:39 pm
Forum: Personal Investments
Topic: 30 year TIPs auction 6/23/11- 2% real rate???
Replies: 61
Views: 8594

I thought the real yield is determined at auction, depending on the price that people are willing to pay. If you don't know the yield until the auction is over, how could you buy more? The expected yield is widely published prior to the auction, and the actual yields for the auctions I've participa...
by lm
Thu Jun 09, 2011 12:08 am
Forum: Personal Investments
Topic: 30 year TIPs auction 6/23/11- 2% real rate???
Replies: 61
Views: 8594

Re: 30 year TIPs auction 6/23/11- 2% real rate???

There a couple of things about the TIPS auction process that I don't understand. For example: But if the real yield hits 2%, I will buy more. I thought the real yield is determined at auction, depending on the price that people are willing to pay. If you don't know the yield until the auction is ove...
by lm
Wed Jun 08, 2011 1:08 pm
Forum: Investing - Theory, News & General
Topic: Grok's Tip #8:Retire Worry-Free with TIPs as a foundation
Replies: 172
Views: 52033

It seems like the key to this strategy is the guaranteed return you get from TIPS when holding them to maturity. I feel that this property is lost when investing in a TIPS fund or ETF rather than in individual TIPS. Is this correct? Or is it possible to replicate this strategy using a fund or ETF?
by lm
Mon May 30, 2011 12:23 am
Forum: Investing - Theory, News & General
Topic: Precious Metals in Your Portfolio
Replies: 42
Views: 3987

I do not own any precious metals, but I have been interested in them for a while. ETFs like GLD or SLV seem like convenient ways to invest in them, but I have come across a few articles that question their reliability, in particular whether they actually own sufficient gold or silver to match the in...
by lm
Sun May 22, 2011 1:18 pm
Forum: Investing - Theory, News & General
Topic: Treasury Direct Access Card
Replies: 39
Views: 12162

Have to wait for the "access card" in the mail. Today they came. What a pain. I don't know if I'm that dumb or if it's that complicated but no way could I log on. Asks for my Account number, but the account number has many * in it. Since the access card and your account number are two separate piec...
by lm
Thu May 12, 2011 11:19 am
Forum: Investing - Theory, News & General
Topic: Redeeming Paper I-Bonds: 1000$ limit at banks?
Replies: 12
Views: 2621

Thank you all for your responses. It sounds like banks will redeem 5k I-Bonds jsut fine, as long as the money goes into your account at the bank, rather than getting cash. Good to know!
by lm
Thu May 12, 2011 12:57 am
Forum: Investing - Theory, News & General
Topic: Redeeming Paper I-Bonds: 1000$ limit at banks?
Replies: 12
Views: 2621

Re: Redeeming Paper I-Bonds: 1000$ limit at banks?

The $1000 limit is normally for banks where you don't have an account. If you have an account at the bank, they'll redeem as many as you have and deposit the money in your account overnight. Now if you asked for more than $1000 in cash, that might be another story. I've never done that. Thank you v...
by lm
Wed May 11, 2011 10:18 pm
Forum: Investing - Theory, News & General
Topic: Redeeming Paper I-Bonds: 1000$ limit at banks?
Replies: 12
Views: 2621

Redeeming Paper I-Bonds: 1000$ limit at banks?

Hello, This is my first post to this forum. I am just starting to get a little more organized with my savings, and this site has already been amazingly helpful. Thank you all for sharing your knowledge. One of the things I learned is that I should buy I-Bonds this month :? I am still undecided wheth...