Search found 183 matches

by DetroitRed
Tue Jul 18, 2023 5:41 pm
Forum: Investing - Theory, News & General
Topic: [MOVEit Hack Put Fidelity Retirement Plan Participant Data at Risk]
Replies: 9
Views: 1789

[MOVEit Hack Put Fidelity Retirement Plan Participant Data at Risk]

[Title was "Over 371,000 Fidelity Retirement accounts were hacked" --admin LadyGeek] Over 371,000 Fidelity Retirement plan accounts were hacked, and personal data, including name, partial mailing address [whatever that means], Social Security number [!!!] and date of birth were exposed. MOVEit Hack Put Fidelity Retirement Plan Participant Data at Risk https://www.thinkadvisor.com/2023/07/17/moveit-hack-put-fidelity-retirement-plan-participant-data-at-risk/ Fidelity Latest Victim of MoveIt Hacks via Vendor PBI https://www.planadviser.com/fidelity-latest-victim-moveit-hacks-via-vendor-pbi/ According to the first article above, residents of Maine were notified by Fidelity because Maine state law required notification of the hack. On...
by DetroitRed
Wed Mar 29, 2023 5:54 pm
Forum: Personal Finance (Not Investing)
Topic: Getting mails/visits/call from NORC at Univ of Chicago.
Replies: 19
Views: 2854

Re: Getting mails/visits/call from NORC at Univ of Chicago.

In this day and age with so many scammers, it is completely legitimate to be wary of someone contacting you for a survey. That said, I 100% agree with what @delamer said. NORC is absolutely a legitimate survey operator. In fact they conduct the most important social survey for the studying and documenting the social trends and views of Americans over a long period of time, the General Social Survey. It's been conducted continuously since 1972. In conducting the survey they make sure to get a diverse enough group of people that it reflects the nation as a whole. Here is a press release celebrating their 50 year anniversary and describing the survey's importance -- NORC Celebrates 50 Years Of The General Social Survey https://www.norc.org/New...
by DetroitRed
Wed Aug 05, 2020 2:09 pm
Forum: Investing - Theory, News & General
Topic: Vanguard Group sells largest US Private Placement deal in history
Replies: 29
Views: 4037

Re: Vanguard Group sells largest US Private Placement deal in history

After Fidelity (FMR) issued private placement debt they started reporting financial data to accredited investors (investors who are allowed to invest in private placements). So maybe Vanguard will have to do that too. A number of journalists have been able to gain access to the FMR financials over the years and there have been a number of stories reporting about FMR's finances. I don't believe private placement debtors always disclose their financials. And I don't believe private placement debtors do any disclosures regarding executive compensation. They are not required to file proxy statements because they don't have a publicly traded stock. Hopefully someone on this board is an accredited investor and has access to the Vanguard bond pros...
by DetroitRed
Mon Dec 24, 2018 1:59 pm
Forum: Personal Finance (Not Investing)
Topic: Sold a rental property for an "ordinary loss of $70,719" in 2018 - how will this affect taxes?
Replies: 23
Views: 2600

Re: Sold a rental property for an "ordinary loss of $70,719" in 2018 - how will this affect taxes?

MarkNYC wrote: Mon Dec 24, 2018 12:51 pm
stats99 wrote: Mon Dec 24, 2018 12:36 pm Have you also accounted for Depreciation recapture?
Why do you believe depreciation recapture will apply if the property is sold at a loss?
Are you calcing your basis correctly for the $70,719 loss calculation? Your basis is reduced by the amount of depreciation you have taken.
by DetroitRed
Fri May 25, 2018 5:57 pm
Forum: Personal Finance (Not Investing)
Topic: Roth conversion - will I have pro-rata rule problems?
Replies: 6
Views: 825

Re: Roth conversion - will I have pro-rata rule problems?

As long as there is zero dollars in the rollover Ira by dec 31, you should be fine. https://www.kitces.com/blog/the-impact-of-the-ira-aggregation-rule-on-after-tax-distributions-roth-conversions-60-day-rollovers-rmds-and-72t-payments/ Thanks for your reply, but unfortunately in the link you provided it says the opposite - that you have to do the rollover-to-401k transfer first. In Example 2 "Jenny" has a $5,500 TIRA and $200k in a rollover IRA. It says, "Jenny does have a potential workaround [to avoid the pro-rate rule] – she can roll over the existing pre-tax IRA funds into an employer retirement plan, which separates them from the IRA-only aggregation rule. Once rolled over, she can now convert the remaining now-just-non-...
by DetroitRed
Fri May 25, 2018 5:27 pm
Forum: Personal Finance (Not Investing)
Topic: Roth conversion - will I have pro-rata rule problems?
Replies: 6
Views: 825

Roth conversion - will I have pro-rata rule problems?

I want to convert my traditional IRA (TIRA) to a Roth but I also have a rollover IRA. What happens if I do the Roth conversion before I transfer the rollover IRA to my 401k? I will subsequently transfer the rollover IRA to my 401k before 12/31/18? If I convert my TIRA to a Roth before I transfer the rollover IRA to my 401k (I would do this transfer before 12/31/18), will I run afoul of the pro rata rule (because I still had a rollover IRA at the time of the Roth conversion) or am I in the clear as long as I transfer the rollover IRA to my 401k by 12/31/18? Because Line 6 of 2018 Form 8606 will ask for my traditional IRA balances on 12/31/18, it seems like I'd avoid the pro-rata rule, but I can't seem to find any verification of this. Sample...
by DetroitRed
Wed Nov 22, 2017 6:51 pm
Forum: Investing - Theory, News & General
Topic: Minimizing capital gains assuming FIFO basis
Replies: 26
Views: 3747

Re: Minimizing capital gains assuming FIFO basis

Use a separate fund to locate shares bought at a high Shiller CAPE or a high Price-to-earnings (PE) ratio? If you had two funds that were roughly similar (but were different enough to allow tax loss harvesting), maybe only invest in one of the funds when the Shiller CAPE or PE is above a particular level. That way you'd have a fund composed of "more expensive" shares (shares bought at a higher price earnings ratio) that could be more easily tax loss harvested. When shares are less expensive (lower PE, lower Shiller CAPE) then you'd purchase those inside your "less expensive" shares fund when shares are more expensive (higher PE, higher Shiller CAPE) you'd purchase shares inside your "more expensive" shares fun...
by DetroitRed
Wed Nov 22, 2017 1:08 pm
Forum: Investing - Theory, News & General
Topic: Minimizing capital gains assuming FIFO basis
Replies: 26
Views: 3747

Re: Minimizing capital gains assuming FIFO basis

Use a separate fund to locate shares bought at a high Shiller CAPE or a high Price-to-earnings (PE) ratio? If you had two funds that were roughly similar (but were different enough to allow tax loss harvesting), maybe only invest in one of the funds when the Shiller CAPE or PE is above a particular level. That way you'd have a fund composed of "more expensive" shares (shares bought at a higher price earnings ratio) that could be more easily tax loss harvested. When shares are less expensive (lower PE, lower Shiller CAPE) then you'd purchase those inside your "less expensive" shares fund when shares are more expensive (higher PE, higher Shiller CAPE) you'd purchase shares inside your "more expensive" shares fun...
by DetroitRed
Sat Jan 21, 2017 6:15 pm
Forum: Personal Finance (Not Investing)
Topic: stock in private tech cos ("Unicorns")
Replies: 2
Views: 661

Re: stock in private tech cos ("Unicorns")

Thanks for posting. This was very good advice about the issues faced when receiving stock options in private companies.

I saved a permanent copy to the Internet Archive (in case the original posting goes away) - https://web.archive.org/web/20170121235 ... ce=twitter
by DetroitRed
Mon Feb 15, 2016 1:37 pm
Forum: Personal Consumer Issues
Topic: Anyone bought a new bed recently? [Mattress]
Replies: 59
Views: 14595

Re: Anyone bought a new bed recently?

The Feb 2016 issue of Consumer Reports has mattress ratings - http://www.consumerreports.org/cro/maga ... /index.htm

If you don't have a subscription, your public library should have a copy (at my public library that have electronic access that I can use after authenticating with my library card).
by DetroitRed
Tue Jan 26, 2016 6:59 pm
Forum: Personal Finance (Not Investing)
Topic: NJ tax question regarding ROTH withdrawal
Replies: 28
Views: 4605

Re: NJ tax question regarding ROTH withdrawal

Brost2355 wrote:High estate, inheritance, property taxes. Add this to the list. I love NJ.
Don't forget about their horrible rules regarding capital losses. No capital loss carry-forwards allowed. No capital loss deductions allowed (you're only allowed to deduct capital losses against capital gains; if you don't have any capital gains, your capital losses are forfeited).
by DetroitRed
Mon Dec 14, 2015 2:34 pm
Forum: Personal Finance (Not Investing)
Topic: Dealing with rental house we don't want anymore but is profitable
Replies: 22
Views: 3647

Re: Dealing with rental house we don't want anymore but is profitable

OP - also keep in mind that when you sell a rental property, you'll have to pay taxes on the depreciation you took (called depreciation recapture). See for example - http://homeguides.sfgate.com/paying-bac ... 42080.html
by DetroitRed
Tue Sep 01, 2015 11:44 am
Forum: Personal Consumer Issues
Topic: So-called charity won't delete my name
Replies: 28
Views: 3931

Re: So-called charity won't delete my name

Thanks for the replies. A web search verifies that Project C.U.R.E. is legit. Fie on Project Cure Inc. for co-opting the name! This Project Cure Inc is actually not a charity, though it masquerades as one. It is a 501 c 4 organization (non-profit trade assoc or lobbying org., I thnk). Again, revealed in the fine print. I know legit charities are exempt from restrictions such as DO NOT CALL lists, etc. What about the "c 4's"? I'm not going to give up. Sending a fat envelope full of paper shreds is a fun idea. What about quickly contacting Project C.U.R.E. and letting them know someone is co-opting their good name? The legit charity would have the most incentives to aggressively pursue the co-opter and get them to stop their activi...
by DetroitRed
Mon Jul 20, 2015 2:10 pm
Forum: Personal Consumer Issues
Topic: Recommend a magazine with good writing like the New Yorker
Replies: 53
Views: 19873

Re: Recommend a magazine with good writing like the New Yorker

Try TheBrowser.com (https://thebrowser.com). The main editor, Robert Cottrell, does a great job of picking around 4-5 interesting longform articles from all over the internet. He's very good at finding thought-provoking articles that I wouldn't otherwise run across.

You can see the 5 most recent postings without a subscription. A subscription, which allows you to see the historical postings, costs $34/year.

Try following it for a while to see how much you enjoy the recommended articles.
by DetroitRed
Wed Jul 15, 2015 3:00 pm
Forum: Personal Finance (Not Investing)
Topic: Where to get medallion signature guarantee
Replies: 60
Views: 88186

Re: Where to get medallion signature guarantee

It's definitely becoming more difficult to get a medallion signature guarantee.

I've used my credit union numerous times in the past to get one.

Today when I tried to get one in order to transfer an IRA to Vanguard, I was told that their stamp does not cover asset transfers and they refused to provide one.

They said their stamp only covers changes in ownership or the liquidation of an asset, but not transfers. I spoke with the branch manager so obviously this was a change that came from management.

I believe more and more investors are going to run into this problem.
by DetroitRed
Mon Mar 23, 2015 10:23 am
Forum: Investing - Theory, News & General
Topic: "Small-Cap Indexing: Popularity Can Be a Pain"
Replies: 14
Views: 6233

Re: "Small-Cap Indexing: Popularity Can Be a Pain"

Small cap return data before the early 60s is extremely unreliable because the primary source, CRSP, doesn't include any American Stock Exchange (AMEX) data. I believe CRSP added AMEX stocks on 7/2/62.

In the pre-NASDAQ era (i.e. before the early 70s) it was hard to get an NYSE listing so many small caps traded on AMEX.
by DetroitRed
Sun Mar 01, 2015 5:07 pm
Forum: Investing - Theory, News & General
Topic: How to Invest in Gold
Replies: 70
Views: 12392

Re: How to Invest in Gold

donaldfair71 wrote:
John3754 wrote:
DetroitRed wrote:I think it's also important to note that if you hold gold in a taxable account it doesn't qualify for the lowest capital gain rate. It's treated as a collectible and gains are taxed at 28%.
Gold is not taxed at a flat 28%, it's taxed at a MAX of 28%.
Ok, but gold still does not qualify for the lowest capital gain rate. If someone is in the 15% tax bracket they pay a 0% long term capital gain rate. Gold doesn't qualify for that and you'll pay a higher tax rate on the gain. That's my main point.

Thanks for pointing out that, like most things in tax, there's a lot of complexity.

p.s.: I'm talking about long term gains, not short term.
by DetroitRed
Sat Feb 28, 2015 3:14 pm
Forum: Investing - Theory, News & General
Topic: How to Invest in Gold
Replies: 70
Views: 12392

Re: How to Invest in Gold

I think it's also important to note that if you hold gold in a taxable account it doesn't qualify for the lowest capital gain rate. It's treated as a collectible and gains are taxed at 28%.
by DetroitRed
Wed Jan 21, 2015 3:22 pm
Forum: Personal Consumer Issues
Topic: Netflix DVD delivery slowdown?
Replies: 141
Views: 48433

Re: Netflix DVD delivery slowdown?

I was wondering the same thing. I've only gotten two discs so far this year and they've each taken a day longer than usual (2 days vs. 1).
by DetroitRed
Fri Jul 25, 2014 4:05 pm
Forum: Personal Finance (Not Investing)
Topic: Wall Street Journal Subscription Increase
Replies: 29
Views: 4569

Re: Wall Street Journal Subscription Increase

After dealing with this problem a number of times I now pay all my subscriptions by check (I don't do direct debit).

It's a little bit more trouble because I have to write a check, get a stamp and mail it. But it put an end to my problem of getting automatically renewed at a much higher rate.
by DetroitRed
Fri Jul 18, 2014 8:56 am
Forum: Personal Consumer Issues
Topic: Poll - Do You Read Businessweek?
Replies: 30
Views: 4050

Re: Poll - Do You Read Businessweek?

It's gotten much better since Bloomberg bought it. Bloomberg has the largest news staff in the world and employs many very good business reporters. The other business pubs like Fortune and Forbes do fewer articles that require reporting (because they've had to cut staff). Businessweek has at least 3 articles a week that requires reporting (as opposed to articles that just comment on the news).
by DetroitRed
Sun Jun 01, 2014 8:38 pm
Forum: Personal Finance (Not Investing)
Topic: Credit Default Swaps - soon available to retail investors
Replies: 14
Views: 3076

Re: Credit Default Swaps - soon available to retail investor

A word of caution from Bloomberg: http://www.businessweek.com/articles/2014-05-29/beware-of-exotic-etfs-bearing-credit-default-swaps Bloomberg seems to see CDSs as only being useful to day traders (in fairness to them, that's the primary ProShares user). I see them as doing a lot of the same things as gold or US Treasuries. CDSs and gold have a similar weakness - no income stream. And the same strength - value should increase in times of market turmoil. The North American Investment Grade CDS index that ProShares will follow went from around 30 in January 2007 to 279 in December 2008, almost a tenfold increase (I looked up the pricing on a Bloomberg terminal). Treasuries obviously have an income stream. Gold's spot price had a low of aroun...
by DetroitRed
Sun Jun 01, 2014 5:58 pm
Forum: Personal Finance (Not Investing)
Topic: Credit Default Swaps - soon available to retail investors
Replies: 14
Views: 3076

Credit Default Swaps - soon available to retail investors

Retail investors will soon be able to invest in ETFs tied to the main credit default swap (Markit) indexes.

See - http://www.etftrends.com/2014/05/prosha ... swap-etfs/

I'll be interested to see whether this becomes a recommended part of may recommended asset allocations. CDSs are a unique asset class. They have a lot of upside potential when the world starts falling apart.

My biggest problem with them currently is that CDSs still trade OTC so there's counterparty risk. Hopefully in the near future they'll trade on exchanges and a lot of the counterparty risk will be removed.
by DetroitRed
Fri Jan 31, 2014 10:06 am
Forum: Personal Consumer Issues
Topic: preventing rust on car exhaust system
Replies: 28
Views: 24127

Re: preventing rust on car exhaust system

selftalk wrote:By driving short distances you do not burn off the water vapor inside the muffler and it will rust through. By therefore driving a longer distance you will burn off the water vapor inside the muffler and pipes. It`s very simple.
This was mentioned earlier in the thread too. I think it makes an enormous difference. I used to not pay any attention to this, take lots of very short trips and I rusted out mufflers all the time.

Now I'm more cognizant of this and my exhaust systems are lasting much longer.
by DetroitRed
Fri Jan 31, 2014 10:01 am
Forum: Personal Investments
Topic: How to achieve a 10% allocation in REITs
Replies: 11
Views: 1697

Re: How to achieve a 10% allocation in REITs

Also, remember that the TSP stock funds hold REITs (though they hold market weightings which are less than 10%), so you already have assets in REITs.
by DetroitRed
Sun Jan 12, 2014 4:06 pm
Forum: Personal Investments
Topic: Anyone buying extra $5000 I Bonds through tax refunds
Replies: 31
Views: 3140

Re: Anyone buying extra $5000 I Bonds through tax refunds

For the last several years I've made an estimated tax payment using Form 1040-ES by Jan 15th to bump up my refund to a bit over $5,000.

Then I file as early as possible after I get all my 1099s.

Works like a charm and gets me $5,000 of paper I Bonds.
by DetroitRed
Thu Jan 09, 2014 8:54 am
Forum: Personal Investments
Topic: buy I-bonds now or wait after May 1?
Replies: 50
Views: 13254

Re: buy I-bonds now or wait after May 1?

@ current 0.2% fixed you still have a negative real return upon withdrawal (after tax). It makes a ton of sense to me to wait to see if you can get at least to a break-even point. All of my 0% fixed iBonds will be used in the next few years for big purchases (house, new car, etc) I really dont want anymore of them, and have no intention of holding something with a guaranteed negative return over 30 years. All true, but the question is: what are your alternatives in fixed income? my 0.75% savings account. for the $20k i would invest, and assuming 1.19% ibonds rate, I will make $36 less in interest waiting for the new rate. If the rate jumps 20 basis points in May, I will make $1,235 more in interest over the 30 year duration of an iBond. If...
by DetroitRed
Wed Jan 08, 2014 3:21 pm
Forum: Personal Investments
Topic: buy I-bonds now or wait after May 1?
Replies: 50
Views: 13254

Re: buy I-bonds now or wait after May 1?

I'll make an additional estimated federal tax payment before 1/15/14 so that I can buy $5,000 of paper I bonds using IRS Form 8888.

Per Mel's Nov 2013 Forbes column, this will again be an option for the 2013 tax year -- http://www.forbes.com/sites/theboglehea ... r-i-bonds/
by DetroitRed
Tue Dec 17, 2013 10:37 am
Forum: Investing - Theory, News & General
Topic: The Global Multi-Asset Market Portfolio 1959-2012
Replies: 9
Views: 2005

Re: The Global Multi-Asset Market Portfolio 1959-2012

Thanks for posting the clarifications, Laurens.

I don't have any good ideas for a historical real estate data source, but will let you know if something feasible comes to mind.
by DetroitRed
Mon Dec 16, 2013 5:21 pm
Forum: Investing - Theory, News & General
Topic: The Global Multi-Asset Market Portfolio 1959-2012
Replies: 9
Views: 2005

Re: The Global Multi-Asset Market Portfolio 1959-2012

Doeswik, Lam and Swinkels go on to say We use the market capitalization of the GPR General PSI Global Index (GPRGLES) to backfill the period 1984-2005, as well as to fill the period 2007-2012. Here we use the 2006 estimate of USD 4.0 trillion as a starting point. Subsequently we use percentage changes in the market capitalization series to arrive at estimates for all other years. I'm not too clear on what they are doing or what the "backfilling" and "filling" procedures are. I was able to download the paper. I looked up the GPR General Index and it seems to be based on international publicly traded real estate stocks. Hardly representative of the world real estate market. I don't have a lot of faith in their research da...
by DetroitRed
Mon Dec 16, 2013 2:38 pm
Forum: Investing - Theory, News & General
Topic: The Global Multi-Asset Market Portfolio 1959-2012
Replies: 9
Views: 2005

Re: The Global Multi-Asset Market Portfolio 1959-2012

Will try to remember to look at this when it gets published.

Very interested to see what their sources are for the global asset class returns back to 1959.

Global real estate return data back to 1959? Definitely not familiar with that source.
by DetroitRed
Tue Dec 10, 2013 4:26 pm
Forum: Personal Consumer Issues
Topic: Spirit Air?
Replies: 33
Views: 3217

Re: Spirit Air?

VictoriaF wrote:Do they charge for turning the reading light on?

Victoria
Don't give them any ideas for new fees!
by DetroitRed
Mon Dec 02, 2013 4:37 pm
Forum: Investing - Theory, News & General
Topic: New PenFed CD rates!
Replies: 313
Views: 67139

Re: New PenFed CD rates!

Re: Early withdrawal penalty

Keep in mind that you can deduct the CD early withdrawal penalty on your federal tax return, even if you don't itemize (it's an "above the line" deduction). Last year it was line 30 on the Form 1040.

You should take this into account when calcing how much in interest you'll forfeit by breaking the CD early.
by DetroitRed
Tue Nov 26, 2013 10:16 am
Forum: Personal Finance (Not Investing)
Topic: PenFed pulls a "fast one"
Replies: 8
Views: 3068

Re: PenFed pulls a "fast one"

It does illustrate the disadvantage of getting credit card points back instead of cash.

More and more credit cards are moving away from giving cash back because a point system can be surreptitiously devalued.
by DetroitRed
Mon Nov 18, 2013 10:32 am
Forum: Investing - Theory, News & General
Topic: Historic Small Cap Returns May be Inflated
Replies: 15
Views: 2204

Re: Historic Small Cap Returns May be Inflated

stevewolfe wrote:
DetroitRed wrote:The main database for historical US stock returns is CRSP which has NYSE stocks back to 12/31/25.

The American Stock Exchange (AMEX) was not covered by CRSP until 07/31/1962. It used to be difficult to get an NYSE listing, so many small caps were listed on AMEX. Therefore the historical small cap returns between 1925 and 1962 are calced from an incomplete universe of US stocks.
Now that ^^^^ is very interesting bit of information that in the last 5 years I've been here I do not recall ever hearing before. Thanks for sharing that!
I wish that fact would be more widely reported.
by DetroitRed
Mon Nov 18, 2013 10:25 am
Forum: Investing - Theory, News & General
Topic: Deleted
Replies: 10
Views: 1707

Re: WSJ lists global PE10

prudent wrote:I agree with the observation that comparisons are not applicable when the accounting standards are different. When accounting standards are different, how can you compare P/E ratios?
I don't know anyone who does this.

Someone could theoretically standardize the earnings numbers to make them comparable, but that's extremely difficult to do and would entail making a lot of subjective decisions.
by DetroitRed
Sun Nov 17, 2013 6:39 pm
Forum: Investing - Theory, News & General
Topic: Historic Small Cap Returns May be Inflated
Replies: 15
Views: 2204

Re: Historic Small Cap Returns May be Inflated

The main database for historical US stock returns is CRSP which has NYSE stocks back to 12/31/25.

The American Stock Exchange (AMEX) was not covered by CRSP until 07/31/1962. It used to be difficult to get an NYSE listing, so many small caps were listed on AMEX. Therefore the historical small cap returns between 1925 and 1962 are calced from an incomplete universe of US stocks.
by DetroitRed
Sun Nov 17, 2013 6:32 pm
Forum: Investing - Theory, News & General
Topic: Deleted
Replies: 10
Views: 1707

Re: WSJ lists global PE10

Accounting standards in different countries are often not comparable. US standards are very different from the international standards (IFRS), so the earnings part of the PE is not comparable across many countries.

Many countries are moving to IFRS, but that hasn't happened yet (and don't hold you breath for the US to convert).
by DetroitRed
Mon Nov 11, 2013 10:26 am
Forum: Personal Finance (Not Investing)
Topic: Gifting appreciated stock to pay college tuition
Replies: 30
Views: 7532

Re: Gifting appreciated stock to pay college tuition

Great discussion. Quality info like this is a reason why this board is so valuable.
by DetroitRed
Tue Oct 29, 2013 12:32 pm
Forum: Personal Investments
Topic: New Jersey TLH: Use it or lose it?
Replies: 12
Views: 1947

Re: New Jersey TLH: Use it or lose it?

market timer wrote:One common solution is to move away from NJ when retiring and selling assets with gains.
Dying in NJ is tough too. The estate tax threshold is low (675k) and there is an inheritance tax.

One other thing to add - if your ordinary income is high it can still be worth it in NJ to take capital losses up to 3k because you get to deduct them on the federal return against ordinary income.
by DetroitRed
Sat Oct 26, 2013 5:36 pm
Forum: Investing - Theory, News & General
Topic: Comments on C. Reed's paper, "Rethinking Asset Location"
Replies: 43
Views: 7499

Re: Comments on C. Reed's paper, "Rethinking Asset Location"

grabiner wrote:My own asset allocation spreadsheet is designed for this adjustment. It never adds the dollar balance of all the accounts, only the adjusted value, so a $10,000 decrease on an account taxed at 25% shows up as only a $7500 loss on the bottom line.
I feel like there is a market for a software program (with an easy to use interface) that would do the things Reed's paper talks about - i.e. the program could show your net worth by adjusting for "final after-tax values."

The potential market is probably not as large as for Quicken, but I bet there are a lot of people who would be interested.
by DetroitRed
Fri Oct 25, 2013 1:58 pm
Forum: Investing - Theory, News & General
Topic: 91% real loss in bonds - is this an accurate statement?
Replies: 52
Views: 6365

Re: 91% real loss in bonds - is this an accurate statement?

Also, even if they had calced the loss correctly, it would still only be applicable for zero coupon bonds (which pay no interest).

For regular Treasuries, you would have received coupon payments over the years which could have been invested at higher interest rates when rates rose.
by DetroitRed
Mon Oct 21, 2013 9:51 am
Forum: Personal Investments
Topic: Will Vanguard kill the remaining Tax Managed funds?
Replies: 8
Views: 3120

Re: Will Vanguard kill the remaining Tax Managed funds?

Re: Qualified dividends

I guess it's also possible that the new domestic CRSP indexes Vanguard started using in early 2013 will have higher qualified dividends (QDIs) than the MSCI indexes they replaced.

Seems unlikely, but if that happens it'll make things much better for tax loss harvesting and US factor weighting. Many Bogleheads would be happy if Small-Cap Value Index started to provide 100% qualified dividends.


Note that the Vanguard Extended Market Index Fund didn't change to a CRSP index. It's still following the S&P Completion Index which traditionally only provides about 80% qualified dividends.
by DetroitRed
Sat Oct 19, 2013 4:36 pm
Forum: Personal Investments
Topic: Will Vanguard kill the remaining Tax Managed funds?
Replies: 8
Views: 3120

Will Vanguard kill the remaining Tax Managed funds?

Now that both the Tax Managed International and TM Growth and Income are going away, anyone want to conjecture on whether Vanguard will kill the remaining Tax Managed funds? For Bogleheads this would be a bad thing, because as has been discussed on this board, the following Tax Managed combo is very useful to replicate Vanguard Total Stock Market (TSM) for tax loss harvesting (TLH): 80% Vanguard Tax-Managed Capital Appreciation (VTCLX) 20% Vanguard Tax-Managed Small-Cap (VTMSX) This combo provides a close replication of TSM, fairly low management fees and provides 100% qualified dividends. If Vanguard merged Tax-Managed Small-Cap (VTMSX) into Small Cap Admiral (VSMAX), this would be inferior because only about 74% of VTMSX's dividends are q...
by DetroitRed
Sat Oct 19, 2013 3:57 pm
Forum: Investing - Theory, News & General
Topic: Improved Net Worth by Age [and plot]
Replies: 252
Views: 50974

Re: Improved Net Worth by Age [and plot]

I appreciate the effort in doing this, but I feel like it leaves out an extremely important data point - how much in career earnings and inheritance someone has garnered.

If two people both have a net worth of $1 million and are 45 years old, but the added data points shows:

Person #1: Has 750k of lifetime earnings and inheritance

Person #2: Has $10 million of lifetime earnings and inheritance

Then the added variable shows that person #1 is a much more impressive savings story.
by DetroitRed
Sat Oct 12, 2013 4:20 pm
Forum: Investing - Theory, News & General
Topic: SSRN: Top 10 (hits) papers
Replies: 4
Views: 999

Re: SSRN: Top 10 (hits) papers

Thanks for putting this together, Barry.
by DetroitRed
Sat Oct 05, 2013 4:11 pm
Forum: Personal Investments
Topic: Questions about backdoor roth if I have a rollover IRA
Replies: 3
Views: 604

Re: Questions about backdoor roth if I have a rollover IRA

I believe if you can transfer/move the rollover IRA to a 401k plan, then it is no longer counted in the conversion (backdoor Roth) calcs.
by DetroitRed
Thu Sep 26, 2013 5:36 pm
Forum: Personal Finance (Not Investing)
Topic: Father left my Mother Suddenly, Need advice
Replies: 64
Views: 13098

Re: Father left my Mother Suddenly, Need advice

The beneficiary of her TSP and Roth is probably her husband.

I'd ask the lawyer if they'd recommend changing that right away.
by DetroitRed
Thu Sep 19, 2013 6:38 pm
Forum: Personal Finance (Not Investing)
Topic: PenFed Rewards Point Change?
Replies: 63
Views: 38573

Re: PenFed Rewards Point Change?

I've recently received a Fidelity AMEX (2% cash back) and have relegated my PenFed visa to the back of the wallet.