Search found 544 matches

by ProfessorX
Sun Feb 20, 2022 7:36 pm
Forum: Personal Finance (Not Investing)
Topic: TAX issue short term vs long term capital gain "average cost basis" at Fidelity
Replies: 34
Views: 2665

Re: TAX issue short term vs long term capital gain "average cost basis" at Fidelity

A likely reason why you could not change the basis from average was because you had no mutual fund shares in the account at that time. I'm not sure because I am holding mutual fund shares in my Roth IRA, and I was not able to change the cost basis method in that account either. You continue to try to blame Fidelity and rationalize what you want to do based on all sorts of facts that are, at the end of the day, irrelevant. You simply did not comply with the IRS requirements to use specific ID. From my earlier post: "Specific share identification. If you adequately identify the shares you sold, you can use the adjusted basis of those particular shares to figure your gain or loss. You will adequately identify your mutual fund shares, eve...
by ProfessorX
Sun Feb 20, 2022 3:50 pm
Forum: Personal Finance (Not Investing)
Topic: TAX issue short term vs long term capital gain "average cost basis" at Fidelity
Replies: 34
Views: 2665

Re: TAX issue short term vs long term capital gain "average cost basis" at Fidelity

I have known the difference between average cost and actual cost basis for a long time. I do recall selecting actual cost when submitting the trade. I've had my Fidelity taxable holdings as actual cost for a long time so no way for me to check how things work now but you may be confusing two different things. Cost (average vs. actual) is something that has to be selected ahead of selling and affects the entire position. What you select when submitting a trade is the lot to be sold (specific ID, FIFO, smallest gain (largest lost), etc.) and it's the lot to be sold that can be changed between execution and settlement. But if your cost selection is average cost, the lot to be sold will be irrelevant except for LT vs. ST). And if you sell all,...
by ProfessorX
Sun Feb 20, 2022 8:06 am
Forum: Personal Finance (Not Investing)
Topic: TAX issue short term vs long term capital gain "average cost basis" at Fidelity
Replies: 34
Views: 2665

Re: TAX issue short term vs long term capital gain "average cost basis" at Fidelity

I believe Fidelity is reporting correctly. I do not believe it would be accurate for you to use Code B on an 8949 to adjust Fidelity’s reported cost basis. The number that Fidelity is reporting is your true cost basis under the method that was being used at the time the shares settled. I get that it is frustrating. I get that they way you picked specific lot(s) to sell made you think you would be using the specific basis. But, to be blunt, just because you thought it was true and want it to be true does not make it true. I put in a trade order for an ETF a couple of years ago. I do use specific ID and I did pick a lot with a loss. I then saved the order and placed the order a few hours later. A couple weeks later, I noticed a gain instead ...
by ProfessorX
Sat Feb 19, 2022 10:12 am
Forum: Personal Investments
Topic: incorrect cost basis on taxable account hpw to correct
Replies: 21
Views: 2189

Re: incorrect cost basis on taxable account hpw to correct

Just make the adjust on F8949. Had to adjust my elder Dad's taxes a couple of years back. He did not get the basis reset on one account from when Mom died. Gave the data to his taxman who split the sale into 2 8959 lines, using 1099B reported basis for 1 year of dividend re-invests, and the step-up basis for 6 years of dividend re-invest as an adjustment to cost. The adjustment lowered the CapGain a couple of hundred dollars. No letter to explain was needed/submitted. IRS did not challenge. Do keep your records to justify the adjustment if challenged. Thanks! I think I'm going to do that! I have all the statements and trade confirmations, so it will be my precise cost basis. Adjustment of basis for step up due to death is irrelevant to the...
by ProfessorX
Sat Feb 19, 2022 9:25 am
Forum: Personal Investments
Topic: incorrect cost basis on taxable account hpw to correct
Replies: 21
Views: 2189

Re: incorrect cost basis on taxable account hpw to correct

Wow I am having a very similar issue to you at exactly the same time at Fidelity (not exactly the same issue but also a problem with using average cost method with mutual funds): I am considering the possibility of writing on my taxes that Fidelity calculated my cost basis incorrectly and then writing in my taxes my correct cost basis using actual cost basis not the average cost basis. I use Turbo Tax and I can use code B when filling out Form 8949 and then accurately report my true cost basis using all of my previous statements and trade confirmations Just make the adjust on F8949. Had to adjust my elder Dad's taxes a couple of years back. He did not get the basis reset on one account from when Mom died. Gave the data to his taxman who sp...
by ProfessorX
Sat Feb 19, 2022 8:29 am
Forum: Personal Finance (Not Investing)
Topic: TAX issue short term vs long term capital gain "average cost basis" at Fidelity
Replies: 34
Views: 2665

Re: TAX issue short term vs long term capital gain "average cost basis" at Fidelity

Ok so to update this thread further, if I go to the link at the bottom of this page: https://www.fidelity.com/tax-information/tax-topics/capital-gains-cost-basis This one: https://i.imgur.com/hBEUNEx.png I have to log in and then it brings me to a page that contains for me this: https://i.imgur.com/09xqmrD.png See how it says "average cost" for my mutual fund cost basis in two accounts? I am unable to change that online. However, I just called Fidelity, and they connected me to someone at their trading desk right away (even on a Saturday), and the guy told me that I could change my cost basis to "Actual Cost" online. Then I told him that I could not do that. Then he put me on hold in order to put in a request to change i...
by ProfessorX
Sat Feb 19, 2022 8:25 am
Forum: Personal Investments
Topic: incorrect cost basis on taxable account hpw to correct
Replies: 21
Views: 2189

Re: incorrect cost basis on taxable account hpw to correct

the mutual funds involved are T Rowe Price active managed sector funds that I transfered to Fidelity in kind to simplify my accounts so no direct replacements available or I would of done an exchange to different funds instead of wanting to reset cost basis of the existing funds what I cant get my head wrapped around is the idea that when you sell all the shares in an account of a given fund AND rebuy the exact same number of shares of the same exact fund that the new cost basis according to Fidelity is NOT the NAV at time of purchase but rather according to them the AVERAGE of the original cost basis and that repurchase NAV which makes no sense to me whatso ever. Ok so to update you, if I go to the link at the bottom of this page: https:/...
by ProfessorX
Sat Feb 19, 2022 7:16 am
Forum: Personal Investments
Topic: incorrect cost basis on taxable account hpw to correct
Replies: 21
Views: 2189

Re: incorrect cost basis on taxable account hpw to correct

Wow I am having a very similar issue to you at exactly the same time at Fidelity (not exactly the same issue but also a problem with using average cost method with mutual funds): I am considering the possibility of writing on my taxes that Fidelity calculated my cost basis incorrectly and then writing in my taxes my correct cost basis using actual cost basis not the average cost basis. I use Turbo Tax and I can use code B when filling out Form 8949 and then accurately report my true cost basis using all of my previous statements and trade confirmations Just make the adjust on F8949. Had to adjust my elder Dad's taxes a couple of years back. He did not get the basis reset on one account from when Mom died. Gave the data to his taxman who sp...
by ProfessorX
Sat Feb 19, 2022 6:31 am
Forum: Personal Investments
Topic: incorrect cost basis on taxable account hpw to correct
Replies: 21
Views: 2189

Re: incorrect cost basis on taxable account hpw to correct

the mutual funds involved are T Rowe Price active managed sector funds that I transfered to Fidelity in kind to simplify my accounts so no direct replacements available or I would of done an exchange to different funds instead of wanting to reset cost basis of the existing funds what I cant get my head wrapped around is the idea that when you sell all the shares in an account of a given fund AND rebuy the exact same number of shares of the same exact fund that the new cost basis according to Fidelity is NOT the NAV at time of purchase but rather according to them the AVERAGE of the original cost basis and that repurchase NAV which makes no sense to me whatso ever. So what you did is not a "wash sale" but not so far away from a &q...
by ProfessorX
Sat Feb 19, 2022 5:13 am
Forum: Personal Investments
Topic: incorrect cost basis on taxable account hpw to correct
Replies: 21
Views: 2189

Re: incorrect cost basis on taxable account hpw to correct

OP here, Update as of 2/18/2022 I contacted Fidelity CS again, I was transfered to trading desk CS Rep who then contacted another person. Trading CS Rep insista as per the other person they contacted that "It's against regulations to reset the basis to the full NAV as of the date of sale and rebuy" also told me that was do to uncovered shares of mutual funds in that acoount and CS Rep told me I should of received a message to that effect Which if I understand correctly would be only possible if there were shares purchased previous to 2012 in that account? Taxable account wasn't opened till 2018 ANd I have yet to receive any maessages about this issue What are my next step from here ? the tax forms I have available on Fidelity sho...
by ProfessorX
Fri Feb 18, 2022 6:48 pm
Forum: Personal Finance (Not Investing)
Topic: TAX issue short term vs long term capital gain "average cost basis" at Fidelity
Replies: 34
Views: 2665

Re: TAX issue short term vs long term capital gain "average cost basis" at Fidelity

The two taxable accounts do average cost for mutual funds and actual cost for stocks, etfs, etc and there is no option to change that either. This is your problem. Your taxable account is using average cost for mutual funds. Even if you specified the shares, they would have all been at the same average cost. There is nothing you can do about what has already been sold. To change this going forward, call Fidelity and have them change it. I had to do this years ago and my taxable account shows actual cost for mutual funds, also with no ability to change on-line. You have to call them. I'm pretty sure once it is changed, it will only apply to future purchases. Any existing shares will remain at their current average cost. I mean I called them...
by ProfessorX
Fri Feb 18, 2022 5:33 pm
Forum: Personal Finance (Not Investing)
Topic: TAX issue short term vs long term capital gain "average cost basis" at Fidelity
Replies: 34
Views: 2665

Re: TAX issue short term vs long term capital gain "average cost basis" at Fidelity

I did some more digging on Fidelity's website. It says on this webpage https://www.fidelity.com/tax-information/tax-topics/capital-gains-cost-basis that you can change your cost basis calculation by following a link: https://i.imgur.com/hBEUNEx.png However when I go to that webpage by following that link then this is what I see https://i.imgur.com/09xqmrD.png I have four accounts at Fidelity and those are the options for all of them. The two Roth IRA's (mine and my wife's which I am authorized see) both do "actual cost" for both mutual funds and stocks and there is no option to change this on the web page. The two taxable accounts do average cost for mutual funds and actual cost for stocks, etfs, etc and there is no option to chan...
by ProfessorX
Fri Feb 18, 2022 4:33 pm
Forum: Personal Finance (Not Investing)
Topic: TAX issue short term vs long term capital gain "average cost basis" at Fidelity
Replies: 34
Views: 2665

Re: TAX issue short term vs long term capital gain "average cost basis" at Fidelity

I mean I know that I didn't select "average cost" as my basis, and it wasn't the default. This was in April 2021 so it was a while ago. I do remember looking at a list of specific ID's for all the shares when I was selling. This is what it says on the transaction confirmation. https://i.imgur.com/B9r1ovT.png I also called them the next day after the trade and the person I talked to on the phone told me that they were going to fix it. Which I should have followed up on but I didn't. Average cost is pretty much always the default, and you have to explicitly tell the brokerage (via email, phone, mail or online) that you want to switch to Specific ID. If you do remember seeing and choosing specific lots, but Fidelity has your fund at...
by ProfessorX
Fri Feb 18, 2022 4:13 pm
Forum: Personal Finance (Not Investing)
Topic: TAX issue short term vs long term capital gain "average cost basis" at Fidelity
Replies: 34
Views: 2665

Re: TAX issue short term vs long term capital gain "average cost basis" at Fidelity

I don't think you have registered the first line of secondcor521's reply, but it goes with something else. You have to tell your brokerage (Fidelity, in this case) in advance that you want to use Specific ID for sales of mutual funds. (If you don't, then the default is average cost.) Assuming you have done this, then when you go to sell, the brokerage presents you with a screen where you can select the tax lots you want to sell. This is what secondcor521 meant by identifying shares at the time the sale happened. The fact that you have ten years of records of all your purchases (or the IRS rules on what is a long-term versus short-term capital gain) is not important. I don't have a Fidelity account so I don't know what their sales screens l...
by ProfessorX
Fri Feb 18, 2022 3:32 pm
Forum: Personal Finance (Not Investing)
Topic: TAX issue short term vs long term capital gain "average cost basis" at Fidelity
Replies: 34
Views: 2665

Re: TAX issue short term vs long term capital gain "average cost basis" at Fidelity

If you want to sell specific lots, you're required to identify those shares to the brokerage at the time the sale happened. There are two possible scenarios: 1. If you can prove to Fidelity that they screwed up by showing them an email or screenshot of an order confirmation that they should have acted on for you but did not, then they should be able to retroactively correct their error. If they do so, they should issue you a corrected 1099-B with the updated information and you should use the corrected 1099-B to file your taxes. This is the less common scenario, and since you specifically wrote that you don't have proof, then I think this option is foreclosed to you. 2. If Fidelity did everything correctly and you did not adequately or cor...
by ProfessorX
Fri Feb 18, 2022 3:03 pm
Forum: Personal Finance (Not Investing)
Topic: TAX issue short term vs long term capital gain "average cost basis" at Fidelity
Replies: 34
Views: 2665

TAX issue short term vs long term capital gain "average cost basis" at Fidelity

Hello, I am having a tax issue at Fidelity with the fund FSKAX. Basically I purchased $11k shares of FSKAX in 2014 and left it alone until 2021. It may have been called FSTVX in 2014. I think sometime in 2018 it changed to FSKAX. This amount grew until 2021 and reinvested dividends. In April 2021 I bought an additional $39k of FSKAX thinking that I was just going to hold it. Then I was doing research on different funds and I decided to switch this whole investment mix into ITOT. So 11 days later (still in April) I sold all my shares of FSKAX and bought ITOT with the proceeds. I don't have proof but I believe that I selected "by lot" as the cost basis method when I sold. It does say on the trade confirmation form that "LOTS WI...
by ProfessorX
Mon Dec 13, 2021 11:52 am
Forum: Personal Finance (Not Investing)
Topic: Official HELOC (Home Equity Line of Credit) thread
Replies: 180
Views: 29048

Re: Official HELOC (Home Equity Line of Credit) thread

Does anyone have any recommendations for a Bank to apply for a HELOC in Philadelphia PA?

I want to use it as a temporary Bridge loan for a down payment on a new house, so I am not super concerned about getting the best possible interest rate.

Instead, I would like to try to minimize fee's. I am also looking for a bank that would not have an aribitrary HELOC cap on the amount that I can borrow. I would like to be approved for around $400K in the HELOC and this should be possible based upon circumstances. Thanks in advance!
by ProfessorX
Sat Apr 24, 2021 7:12 am
Forum: Personal Investments
Topic: Help transferring Funds from Vanguard to Fidelity in a Roth IRA
Replies: 20
Views: 4337

Re: Help transferring Funds from Vanguard to Fidelity in a Roth IRA

dj22 wrote: Sat Apr 24, 2021 6:35 am
EDIT: so a few hours later this morning, my fractional shares of VTI (I had like 0.XXX shares) at Vanguard sold automatically, I did noting to make this happen. So I guess now I wait the three days for the settlement of the ETF, and then I put in another transfer order at Fidelity, and wait for the small amount of cash to be moved over to my Roth at Fidelity... weird.
Don't do anything, it will settle out. Vanguard will send those fractional shares over as well. This will also happen if you are owed any dividends or interest as well. I transferred all of my accounts from VG to Fido and I received everything as things settled. What you are seeing is normal.
Thx!
by ProfessorX
Thu Apr 22, 2021 4:45 am
Forum: Personal Investments
Topic: Help transferring Funds from Vanguard to Fidelity in a Roth IRA
Replies: 20
Views: 4337

Re: Help transferring Funds from Vanguard to Fidelity in a Roth IRA

Hello! I have another question about this situation. Thanks to everyone for their help thus far!! I have completed the full account transfer of my Roth IRA from Vanguard to Fidelity. And I converted my VTSAX shares into VTI before I did the conversion. Overall it was very easy using Fidelity's website... However Vanguard has left fractional shares in my Roth IRA. Apparently, these fractional shares could not be transferred to Fidelity. First tried to do a "partial account transfer" moving only my VTI shares but this was rejected by Vanguard because I only owned VTI in the account. Next, I submitted a "full account transfer" and this was accepted except that Vanguard left fractional shares of VTI in my Roth IRA at Vanguar...
by ProfessorX
Tue Apr 13, 2021 2:13 pm
Forum: Personal Investments
Topic: question about opening a TIAA Brokerage account?
Replies: 23
Views: 1997

Re: question about opening a TIAA Brokerage account?

Well, I can't say how some other poster determined the numbers you read! But that's how I would do it, if I wanted a fairly precise number. The fact is that I might not need such a precise number. There is a known problem with mutual fund names not being accurate descriptions of their total portfolios. And there is no rigid specification for "Small-Cap", for example. But if I could learn that XXXXXX Small-Cap Fund was 87% actual small-cap, I might just live with that kind of number. Another area to explore could be (example) the Correlation Coefficient between Vanguard 500 and Vanguard Total Market. Another person might give some weight to dividends, but that would underweight small-cap's other virtues. Perhaps it comes down to w...
by ProfessorX
Tue Apr 13, 2021 1:29 pm
Forum: Personal Investments
Topic: question about opening a TIAA Brokerage account?
Replies: 23
Views: 1997

Re: question about opening a TIAA Brokerage account?

I like to try to understand what I am doing rather than just copy some percentages that someone else wrote down off of the wiki website. Thanks! To answer your question, I typically try to rebalance once a year, or after I get 10% away from my target allocation (which never happens anyway since I rebalance once a year). Thanks again! I'm glad you don't rebalance too often. Your formula sounds fine. Regarding portfolio distribution, have you looked for the 3x3 "bingo" boxes for those funds? I have Morningstar Premium, which makes them easy to find. I'm surprised that (I just looked) they don't seem to be on the Vanguard pages. Here's the current (which wouldn't change much for an index fund!) % data for VFIAX: ----V---B--G L-19|35...
by ProfessorX
Mon Apr 12, 2021 7:38 pm
Forum: Personal Investments
Topic: question about opening a TIAA Brokerage account?
Replies: 23
Views: 1997

Re: question about opening a TIAA Brokerage account?

I believe they are calculated so that the combination of funds best duplicates the composition of VTSAX. I think you will get many answers on when to rebalance. Most would say at least once a year. Some people use spreadsheets or use something like Personal Capital to constantly track their allocation and rebalance when there is a predetermined amount of drift. How have you rebalanced in the past? I do not think this change in funds needs to change your rebalancing pattern. Sorry, I meant how frequently should I rebalance the combination of those funds so that they best duplicate the composition of VTSAX? Like how do I calculate that 82% Vanguard 500 Index Fund (VFIAX) 18% Vanguard Small-Cap Index Fund (VSMAX) Updated 27 Dec 2018 is the be...
by ProfessorX
Mon Apr 12, 2021 12:43 pm
Forum: Personal Investments
Topic: question about opening a TIAA Brokerage account?
Replies: 23
Views: 1997

Re: question about opening a TIAA Brokerage account?

That is an excellent set of funds. There is absolutely no reason to open a brokerage window to accomplish your goals. You still have the Vanguard three fund portfolio available. It will just take 6 funds to do it if you want to duplicate every aspect of the three fund. Just slightly a little more work to do the rebalancing. Check out the Wiki for the 3 fund portfolio and you can see the exact percentages to use with your alternate funds. Vanguard Total Stock= Vanguard Institutional + Vanguard Mid Cap + Vanguard Small Cap. Some people feel that adding the mid cap makes such a little difference that they do not bother. Vanguard International=Vanguard Developed Markets + Vanguard Emerging Markets. You can use Total Bond or Intermediate Bond. ...
by ProfessorX
Sun Apr 11, 2021 2:17 pm
Forum: Personal Investments
Topic: question about opening a TIAA Brokerage account?
Replies: 23
Views: 1997

Re: question about opening a TIAA Brokerage account?

I suggest that you list your new options. Given the scenario that you describe which is prompting this change, I suspect that you have a reasonable set of options that may just look different or be more limited in number than before. For instance, my DH has a 403b which no longer has a total market index fund but instead has a S&P index fund, mid cap index, and small cap index. By offering this set of funds, the plan can minimize the number of funds offered while allowing a total market or a tilt approach. Anyone who does not want to deal with that extra complexity can just use a target date fund. Thanks! Any suggestions are appreciated. Until now, I have had a three-fund portfolio with total market, total bond, and total international...
by ProfessorX
Sun Apr 11, 2021 1:47 pm
Forum: Personal Investments
Topic: question about opening a TIAA Brokerage account?
Replies: 23
Views: 1997

Re: question about opening a TIAA Brokerage account?

Does having a 403(b) retirement plan mean that I can't buy ETFs in the TIAA brokerage option within my retirement plan? That would be a bummer. I was perhaps too exclusionary. Some ETFs are structured per section 851(a) and therefore satisfy a requirement under 403(b)(7)(C). But others aren't. The approach of most 403(b) plan sponsors and custodial account managers supplying SDBAs has been to simply exclude ETFs as a category rather than maintaining a screen or filter on the burgeoning universe of ETFs. Some background on the 403(b)-ETF question from the first screen of google hits: https://benefitslink.com/boards/index.php?/topic/64448-etfs-custodial-account/ (from 2019 so less suspect of staleness, though referring to the below from 2015...
by ProfessorX
Sun Apr 11, 2021 1:04 pm
Forum: Personal Investments
Topic: question about opening a TIAA Brokerage account?
Replies: 23
Views: 1997

Re: question about opening a TIAA Brokerage account?

I couldn't find their list of NTF ETFs (non-transaction fee exchange traded funds) but if there is a commission it would be less than for mutual funds and very possibly zero for Vanguard ETFs or for ETFs that do just as well. It is often the case that ETF is the approach to holding Vanguard funds not at Vanguard. I believe it will be revealed that OP's employer plan is under section 403(b) and therefore, absent change in code&regulations, ETFs are excluded investments. Yes, I have a 403(b) and I work for a university and my employer is moving from Vanguard to TIAA and giving me worse options because they were sued by the same law firm that has been going around and suing lots of large endowment private universities. Does having a 403(b...
by ProfessorX
Sun Apr 11, 2021 12:50 pm
Forum: Personal Investments
Topic: question about opening a TIAA Brokerage account?
Replies: 23
Views: 1997

Re: question about opening a TIAA Brokerage account?

retired@50 wrote: Sun Apr 11, 2021 12:46 pm
ProfessorX wrote: Sun Apr 11, 2021 12:02 pm
Thanks! Is "Vanguard Institutional Index Fund Institutional" basically the S&P 500?

Does Fidelity have an analog of VEXAX?
Yes, the institutional index IS the S&P 500.
https://investor.vanguard.com/mutual-fu ... file/VINIX

Yes, Fidelity calls it FSMAX.
https://fundresearch.fidelity.com/mutua ... =sq-NavBar

Regards,
Perfect! Thanks!
by ProfessorX
Sun Apr 11, 2021 12:02 pm
Forum: Personal Investments
Topic: question about opening a TIAA Brokerage account?
Replies: 23
Views: 1997

Re: question about opening a TIAA Brokerage account?

The non-brokerage plan currently does not offer an analog of a "Total Stock Market Index fund" although they do offer "Vanguard Institutional Index Fund Institutional" which is similar but not exactly the same as a "Total Stock Market Index fund". The total stock market index and the Institutional Index are so similar I wouldn't bother with trying to find a total market fund. If you insist on making up for the stocks not included in the institutional index (aka S&P 500), then you might be able to add an extended market index fund in a Roth IRA or something. Vanguard has one such fund, VEXAX (or ETF version VXF) which contains all NON S&P 500 stocks. https://investor.vanguard.com/mutual-funds/profile/VE...
by ProfessorX
Sun Apr 11, 2021 10:56 am
Forum: Personal Investments
Topic: question about opening a TIAA Brokerage account?
Replies: 23
Views: 1997

question about opening a TIAA Brokerage account?

My employer recently moved my retirement plan assets from Vanguard to TIAA and gave me access in my employer retirement accounts to a very limited number of Vanguard mutual funds (and some TIAA funds). They say that I can open a TIAA Brokerage account within my retirement plan if I want access to more investment options. The non-brokerage plan currently does not offer an analog of a "Total Stock Market Index fund" although they do offer "Vanguard Institutional Index Fund Institutional" which is similar but not exactly the same as a "Total Stock Market Index fund". 1) Does anyone who has a TIAA Brokerage account know if they offer any extremely low ER "Total Stock Market Index mutual fund" for no trans...
by ProfessorX
Sun Apr 04, 2021 8:37 pm
Forum: Personal Investments
Topic: Help transferring Funds from Vanguard to Fidelity in a Roth IRA
Replies: 20
Views: 4337

Re: Help transferring Funds from Vanguard to Fidelity in a Roth IRA

(2) Yes, I think you would be wise to convert VTSAX to VTI first. I do not believe you will want to continue buying shares VTSAX at Fidelity because of the commissions to do so. Whether you continue to use VTI after the conversion is a separate question and topic. (1) The process time can vary. I think it could be 1 to 5 weeks. Thanks! I just tried to go onto my Roth IRA-Brokerage account at Vanguard and Sell VTSAX to buy VTI. But Vangard doesn't let me do that. I can only sell VTSAX to put it into another mutual fund or into a money market fund like Vanguard Federal Money Market Fund (VMFXX). Sorry for the small question, but how do I buy VTI? Do I have to sell VTSAX into VMFXX and then wait until the transaction puts the money into VMFXX...
by ProfessorX
Sun Apr 04, 2021 8:03 pm
Forum: Personal Investments
Topic: Help transferring Funds from Vanguard to Fidelity in a Roth IRA
Replies: 20
Views: 4337

Re: Help transferring Funds from Vanguard to Fidelity in a Roth IRA

(2) Yes, I think you would be wise to convert VTSAX to VTI first. I do not believe you will want to continue buying shares VTSAX at Fidelity because of the commissions to do so. Whether you continue to use VTI after the conversion is a separate question and topic. (1) The process time can vary. I think it could be 1 to 5 weeks. Thanks! I just tried to go onto my Roth IRA-Brokerage account at Vanguard and Sell VTSAX to buy VTI. But Vangard doesn't let me do that. I can only sell VTSAX to put it into another mutual fund or into a money market fund like Vanguard Federal Money Market Fund (VMFXX). Sorry for the small question, but how do I buy VTI? Do I have to sell VTSAX into VMFXX and then wait until the transaction puts the money into VMFXX...
by ProfessorX
Sun Apr 04, 2021 10:58 am
Forum: Personal Investments
Topic: Help transferring Funds from Vanguard to Fidelity in a Roth IRA
Replies: 20
Views: 4337

Re: Help transferring Funds from Fidelity to Vanguard in a Roth IRA

Since it's a tax advantaged account, I would just liquidate the funds in it and transfer over as cash and buy into Fidelity's version of the same asset class. When you contact Fidelity about initiating this, you can probably specify for the assets to be liquidated at the onset of the transfer process; you're unlikely to have to do it manually yourself. Or you could convert to Vanguard ETF's at Vanguard and transfer those. All of the 'Total Stock Market Index' funds and ETF's from the big players (Fidelity, Schwab, Vanguard, Blackrock) are pretty much equivalent. I tend to go with the "store brand" at the "shops" where I do my investing. Initiate the transfer on the receiving (Fidelity) side. They do a lot of these, and ...
by ProfessorX
Sun Apr 04, 2021 10:47 am
Forum: Personal Investments
Topic: Help transferring Funds from Vanguard to Fidelity in a Roth IRA
Replies: 20
Views: 4337

Re: Help transferring Funds from Fidelity to Vanguard in a Roth IRA

Big Dog wrote: Sun Apr 04, 2021 10:45 am you might edit your post to clarify which direction you are going with the transfer as your headline says one way the body says the other.

But I have transferred both Roths and tIRA's from Fidelity to Vanguard and it just took a few days, but was not of the market any day.

Did one by phone and one online. Both were easy. I transferred the Fidelity funds in-kind to Vanguard and then exchanged them into a Vanguard fund once the account cleared. Of course, I could have could gone the other way: transfer to Vanguard funds while at Fido first, and then transfer.
Thanks! I hope I just fixed it...
by ProfessorX
Sun Apr 04, 2021 10:38 am
Forum: Personal Investments
Topic: Help transferring Funds from Vanguard to Fidelity in a Roth IRA
Replies: 20
Views: 4337

Help transferring Funds from Vanguard to Fidelity in a Roth IRA

TO CLARIFY: LOOKING FOR HELP TRANSFERRING FUNDS FROM VANGUARD TO FIDELITY IN A Roth IRA. So I have been contributing to a Roth IRA at Vanguard for almost ten years. Prior to that I had been contributing to a Roth IRA at Fidelity while in graduate school. The Roth at Vanguard is holding (Vanguard Total Stock Market Index Fund Admiral Shares) VTSAX with a 0.04% ER, and the Roth at Fidelity is holding (Fidelity Total Market Index Fund) FSKAX with a 0.015% ER. Now my employer is moving all my employer sponsored retirement assets from Vanguard to TIAA (but letting me hold Vanguard Mutual Funds at TIAA). Rather than having retirement assets at three custodians, I was thinking of moving my Roth IRA assets at Vanguard to Fidelity. Then I would have...
by ProfessorX
Sun Apr 04, 2021 10:24 am
Forum: Personal Investments
Topic: WSJ article "How to Know if Your Retirement Savings Are on Track"
Replies: 33
Views: 5150

Re: WSJ article "How to Know if Your Retirement Savings Are on Track"

Thanks for the link! Very interesting article! Also some of the comments in this thread are more informative for me than the article!
by ProfessorX
Thu Apr 01, 2021 6:52 pm
Forum: Personal Finance (Not Investing)
Topic: Turbo Tax finding schedule H estimated nanny taxes paid?
Replies: 4
Views: 520

Re: Turbo Tax finding schedule H estimated nanny taxes paid?

Let's say as an example they paid in Q4 2020 $300 - total Local Tax Philiadelphia $200 - total PA State Unemployment Tax $400 - Toal PA State Withholding Then Turbo Tax asks me the following question for example "How much did you pay in state estimated taxes?" and I have to put an amount in for each quarter. So is my Q4 PA State estimated tax payment $400? Or is it $600 = $400+$200? I presume that my total Local Philadelphia taxes is $300 in this example. Thanks again! So your PA estimated tax you withheld was $400. the $200 is state unemployment tax, which it should ask for in a different section... Schedule H will want to do your federal unemployment, and give you a credit for what you paid to PA. The unemployment tax is not wi...
by ProfessorX
Thu Apr 01, 2021 3:26 pm
Forum: Personal Finance (Not Investing)
Topic: Turbo Tax finding schedule H estimated nanny taxes paid?
Replies: 4
Views: 520

Re: Turbo Tax finding schedule H estimated nanny taxes paid?

Does anyone know where I can find the records for which Estimated taxes were paid on my behalf into the accounts for my Federal EIN, my Pennsylvania Employer Withholding Tax Account, my Pennsylvania Unemployment account: the “PENNSYLVANIA SUI ER”, and my Philadelphia Tax Account Number? Your payroll provider should give you this... don't ask for tax advice... ask for your summaries of 2020 taxes paid, etc on your behalf Mike Ok, thanks! So they showed me where to find the tax paid information. The Federal information is easy because I have the 1040-ES that the payroll agency filed on my behalf. However for the State the payroll agency "Surepayroll" gives me a "Deposit recap" report for each quarter. And it lists every p...
by ProfessorX
Thu Apr 01, 2021 3:00 pm
Forum: Personal Finance (Not Investing)
Topic: Turbo Tax finding schedule H estimated nanny taxes paid?
Replies: 4
Views: 520

Turbo Tax finding schedule H estimated nanny taxes paid?

Hello! We have been paying a Nanny on the books this year to help us with daily at-home school for our children in 2020. I have been doing my family’s taxes using Turbo Tax for about a decade. But this is the first time I am doing it with paying a Nanny. I have been using "surepayroll" to run the payroll and take the taxes out of each paycheck and do the direct deposit, create all the tax forms like the Nanny’s W-2 and they created a Schedule H, and they send tax forms to the IRS. They do a great job, and their customer service is great but if you try to ask them even a simple question about "filing taxes" their customer service has been sternly telling them not to answer any of these questions... which I guess makes sen...
by ProfessorX
Tue Mar 30, 2021 8:42 pm
Forum: Personal Finance (Not Investing)
Topic: help filing taxes with nanny paid on the books?
Replies: 3
Views: 458

Re: help filing taxes with nanny paid on the books?

lazynovice wrote: Tue Mar 30, 2021 8:15 pm You fill it out on your joint return and TurboTax can handle it. I do not remember which version of TT but I used it when we had a nanny. The Schedule H you refer to is Schedule H of the 1040. There is a household employees section of TurboTax.
Thanks!
by ProfessorX
Tue Mar 30, 2021 5:20 pm
Forum: Personal Finance (Not Investing)
Topic: help filing taxes with nanny paid on the books?
Replies: 3
Views: 458

help filing taxes with nanny paid on the books?

Hello! We have been paying a Nanny on the books this year to help us with daily at-home school for our children in 2020. I have been doing my family’s taxes using Turbo Tax for about a decade. But this is the first time I am doing it with paying a Nanny. I have been using "surepayroll" to run the payroll and take the taxes out of each paycheck and do the direct deposit, create all the tax forms like the Nanny’s W-2 and they created a Schedule H, and they send tax forms to the IRS. They do a great job, and their customer service is great but if you try to ask them even a simple question about "filing taxes" their customer service has been sternly telling them not to answer any of these questions... which I guess makes sen...
by ProfessorX
Tue Mar 30, 2021 5:03 pm
Forum: Personal Finance (Not Investing)
Topic: Has anyone used CPA for taxes AND did them on their own to compare?
Replies: 58
Views: 6993

Re: Has anyone used CPA for taxes AND did them on their own to compare?

About ten years ago my accountant let me go because they had too many clients, then after I begged them they took me back for that year. In the process I realized that they were asking me to do a lot of work to "prepare my taxes" for them and this took me about as much time as filling out Turbo Tax online. And I also realized that Turbo Tax online was charging me hundreds less. And I realized that Turbo Tax wasn't charging me "by the hour" while I was correcting their mistakes. I also realized that once my returns were corrected, Turbo Tax had me paying basically exactly the same taxes as the accountant. So I started using Turbo Tax and never looked back.
by ProfessorX
Mon Mar 15, 2021 6:23 pm
Forum: Personal Finance (Not Investing)
Topic: Employer Changing plans from TIAA legacy to RC
Replies: 39
Views: 3280

Re: Employer Changing plans from TIAA legacy to RC

ProfessorX, maybe you meant your question rhetorically-But it's like asking why Bank of America is only paying .03% on CDs while online banks are paying more. TIAA can't afford to both denigrate (and defenestrate) its vast base (and insurance company obligation ) of legacy CREF Variable Annuity fund customers by offering a cheaper, plain vanilla product. I'm leaving aside the issue that TIAA has always promoted annuitization as a way to make a limited amount of retirement funds go, reliably, longer. You'd be quite right in saying that that's a self-serving promotion. But it doesn't make it ... false! Yes, the story has an element of corporate tragedy in it. But your version leaves out the 1918 origin of TIAA Traditional, and the vast resis...
by ProfessorX
Sun Mar 14, 2021 6:25 pm
Forum: Personal Investments
Topic: My Employer is removing Vanguard as an option for Retirement investing Hosting (help)
Replies: 27
Views: 2851

Re: My Employer is removing Vanguard as an option for Retirement investing Hosting (help)

But for me, my investment options got worse and the fees I have to pay went up (although they are still low) as a result of this lawsuit that was supposedly for the benefit of my retirement investments. I know you're not happy, but it could've been worse. At UPenn, the 3% guaranteed TIAA Traditional annuity was closed to new contributions, and it was replaced with a 1% guaranteed TIAA Traditional annuity: https://www.bogleheads.org/forum/viewtopic.php?f=2&t=339631 Because of the 403(b) lawsuits, private universities will be making a lot of changes to their 403(b) plans over the next 5-10 years. Some people will be better off, and some people will be worse off. That's true... it could have been worse. And I guess people who had previous...
by ProfessorX
Sun Mar 14, 2021 6:23 pm
Forum: Personal Finance (Not Investing)
Topic: Employer Changing plans from TIAA legacy to RC
Replies: 39
Views: 3280

Re: Employer Changing plans from TIAA legacy to RC

Wow I was just linked to this topic. That is insane. Why didn't CREF or TIAA ever just jump in on the wave and offer a Total Stock Market fund with a close to zero expense ratio like all the other big mutual fund providers?
by ProfessorX
Sun Mar 14, 2021 11:45 am
Forum: Investing - Theory, News & General
Topic: [403b fiduciary lawsuits: MIT Yale NYU Duke Hopkins Penn Vanderbilt Emory Columbia]
Replies: 123
Views: 20079

Re: [403b fiduciary lawsuits: MIT Yale NYU Duke Hopkins Penn Vanderbilt Emory Columbia]

I'm having a hard time seeing the benefits of these lawsuits for anyone but the lawyers personally. I was linked to this thread from another thread that I created. Maybe at other places, the Universities had high record-keeping fees, and having more than one choice for investment options was too confusing for unsophisticated investors. But for me personally with the new investment plan I got as a result of these settlements my fees went up and my choices went down. (1) Creating the three-fund portfolio became more complicated because I lost access to Vanguard Total Stock Market, (2) my expenses went up because I lost access to the ultra-low ER funds at Vanguard and I am only offered a higher ER share class (which is still very low) at TIAA,...
by ProfessorX
Sun Mar 14, 2021 11:33 am
Forum: Personal Investments
Topic: My Employer is removing Vanguard as an option for Retirement investing Hosting (help)
Replies: 27
Views: 2851

Re: My Employer is removing Vanguard as an option for Retirement investing Hosting (help)

I just got a packet in the mail that feels like they just dropped a bomb. My employer is moving investment hosting from being able to choose either Vanguard or TIAA to only allowing hosting at TIAA. They will be moving all of my retirement investments to TIAA during April 2021. And they will allow a very limited selection of Vanguard mutual funds to be purchased while TIAA is hosting my retirement investments. If you work for a private university, this is likely a result of the 403(b) lawsuits that were filed in 2016: https://www.bogleheads.org/forum/viewtopic.php?t=197130 The main complaints were that the plans offered more than one recordkeeper, too many investment choices, and non-Institutional share classes. The average settlement is a...
by ProfessorX
Sun Mar 14, 2021 11:21 am
Forum: Personal Investments
Topic: My Employer is removing Vanguard as an option for Retirement investing Hosting (help)
Replies: 27
Views: 2851

Re: My Employer is removing Vanguard as an option for Retirement investing Hosting (help)

I suspect we have the same employer. I read through the notice a few days ago. It looks like all fees will be made more transparent and they claim overall down. Interestingly they eliminated more TIAA/CREF funds than VG. There’s no extended market but separate mid and small cap options. They kept TIAA Traditional and Real Estate, which are widely regarded as unique funds worth considering. The employer benefits hotline was already run by TIAA even if you were on the VG side previously so I suspect this change has been a long time coming. Annoying as we use VG for everything else. Slight hassle but if ER goes down we’ll come away better off. Just checking back in on this thread. I am not sure whether or not we are at the same employer, but ...
by ProfessorX
Sat Jan 23, 2021 8:57 am
Forum: Personal Investments
Topic: My Employer is removing Vanguard as an option for Retirement investing Hosting (help)
Replies: 27
Views: 2851

Re: My Employer is removing Vanguard as an option for Retirement investing Hosting (help)

I just got a packet in the mail that feels like they just dropped a bomb. My employer is moving investment hosting from being able to choose either Vanguard or TIAA to only allowing hosting at TIAA. They will be moving all of my retirement investments to TIAA during April 2021. And they will allow a very limited selection of Vanguard mutual funds to be purchased while TIAA is hosting my retirement investments. They say that if I do nothing then all my vested retirement assets at Vanguard will be sold (tax protected) and moved into a similar account at TIAA and put into a Vanguard Institutional target retirement date appropriate for my age. That is Tier 1 retirement planning. Their Tier 2 retirement option is that they give me a selection o...
by ProfessorX
Fri Jan 22, 2021 4:43 pm
Forum: Personal Investments
Topic: My Employer is removing Vanguard as an option for Retirement investing Hosting (help)
Replies: 27
Views: 2851

Re: My Employer is removing Vanguard as an option for Retirement investing Hosting (help)

Thanks everyone! My employer claims the fees will be lower both for them and for me. I imagine if that’s not true for the employees then they are big enough that they would get sued.

Glad that I can keep doing the three fund portfolio in Tier 2 at least....
by ProfessorX
Fri Jan 22, 2021 3:35 pm
Forum: Personal Investments
Topic: My Employer is removing Vanguard as an option for Retirement investing Hosting (help)
Replies: 27
Views: 2851

My Employer is removing Vanguard as an option for Retirement investing Hosting (help)

I just got a packet in the mail that feels like they just dropped a bomb. My employer is moving investment hosting from being able to choose either Vanguard or TIAA to only allowing hosting at TIAA. They will be moving all of my retirement investments to TIAA during April 2021. And they will allow a very limited selection of Vanguard mutual funds to be purchased while TIAA is hosting my retirement investments. They say that if I do nothing then all my vested retirement assets at Vanguard will be sold (tax protected) and moved into a similar account at TIAA and put into a Vanguard Institutional target retirement date appropriate for my age. That is Tier 1 retirement planning. Their Tier 2 retirement option is that they give me a selection of...