As a general policy I only buy foreign ETF's in tax advantaged accounts.realclemsongrad wrote: ↑Tue Mar 12, 2024 10:46 am 2. Is there another ETF that is equivalent to this for example that is more tax efficient? How do I go about improving the tax efficiency?
Search found 10591 matches
- Tue Mar 12, 2024 11:27 am
- Forum: Investing - Theory, News & General
- Topic: Reducing the impact of non-qualified (ordinary) dividends
- Replies: 17
- Views: 2320
Re: Reducing the impact of non-qualified (ordinary) dividends
- Wed Mar 06, 2024 2:19 pm
- Forum: Personal Finance (Not Investing)
- Topic: tax filing using PDF
- Replies: 22
- Views: 1421
Re: tax filing using PDF
Ditto, at least in the past. I do use a "proof of mailing" form from the post office to prove that I did mail it on the 15th of the month. (I don't want to give the IRS any extra time with their fine tooth comb". )
I've been getting tired of the long wait at the post office to do this so this year I am going to "e-file" with Turbo Tax.
- Wed Mar 06, 2024 2:09 pm
- Forum: Investing - Theory, News & General
- Topic: Manually Rolling Treasuries at Schwab?
- Replies: 22
- Views: 3325
- Wed Mar 06, 2024 2:03 pm
- Forum: Investing - Theory, News & General
- Topic: Manually Rolling Treasuries at Schwab?
- Replies: 22
- Views: 3325
Re: Manually Rolling Treasuries at Schwab?
Been doing this every 4 weeks for some six months. No problem. I don't recall seeing the "negative balance". Since both the the buy and sell settle on the same day there should not be a negative balance - at least after EOD when both have posted.Oarsman wrote: ↑Mon May 01, 2023 9:26 pm Keep "autoroll" off, purchase a replacement Treasury (of the same value) at auction, your account will show a negative balance until settlement date (typically a week later), and on the settlement date your old Treasury will be redeemed and your new Treasury will be purchased. No lag. No margin needed.
- Sun Feb 25, 2024 11:12 am
- Forum: Investing - Theory, News & General
- Topic: Taxation of Treasury bills, notes and bonds
- Replies: 1027
- Views: 149298
Re: Taxation of Treasury bills, notes and bonds
Not on their 1099's.MisterMister wrote: ↑Sat Feb 24, 2024 1:00 pm 2. Broker reports net proceeds as all cap gain (Schwab)
It's all reported in "YEAR-END SUMMARY INFORMATION THAT IS NOT REPORTED TO THE IRS"
The amount is included in Box3.
Monthly statement reporting was inconsistent in 2023.
(I downloaded all my brokerage 1099's directly to TurboTax and I believe it is AOK but I can't check right now.)
- Sun Feb 18, 2024 1:56 pm
- Forum: Investing - Theory, News & General
- Topic: Why own bond funds with corporate holdings?
- Replies: 54
- Views: 4574
Re: Why own bond funds with corporate holdings?
Why own corporate bond funds?
Because they pay more than Treasuries. And that is because they have more risk. Duh.
Trying to maximize the risk/return "best" point is a non starter. If it were possible to do this and one was better than the other then we could not be making this choice. There would only be one of the two available.
I just take a 1-10 Government/Credit index and use that as my bogey. I break it into four pieces for tax considerations and to give me dry powder for buying equities in a stock market crash.
And I don't even look at the total return.
Because they pay more than Treasuries. And that is because they have more risk. Duh.
Trying to maximize the risk/return "best" point is a non starter. If it were possible to do this and one was better than the other then we could not be making this choice. There would only be one of the two available.
I just take a 1-10 Government/Credit index and use that as my bogey. I break it into four pieces for tax considerations and to give me dry powder for buying equities in a stock market crash.
And I don't even look at the total return.
- Thu Feb 08, 2024 1:03 pm
- Forum: Investing - Theory, News & General
- Topic: Trading Treasuries (nominal and TIPS)
- Replies: 4106
- Views: 455177
Re: Trading Treasuries (nominal and TIPS)
Doc wrote: ↑Thu Feb 08, 2024 1:02 pm I've made two trades in the last month where I rolled a maturing bill.
The maturing date of the existing bill bought at auction in ROTH accounts and the trade date of the new bill are the same. But the settlement date of the new bill is the next day. NO PROBLEM.
These were not "auto roll" transactions.
In using the auto roll feature last year I was getting a delay of the new issue by one "maturing date" so I stopped doing it.
- Thu Feb 08, 2024 1:02 pm
- Forum: Investing - Theory, News & General
- Topic: Trading Treasuries (nominal and TIPS)
- Replies: 4106
- Views: 455177
Re: Trading Treasuries (nominal and TIPS)
I've made two trades in the last month where I rolled a maturing bill.
The maturing date of the existing bill bought at auction and the trade date of the new bill are the same. But the settlement date of the new bill is the next day. NO PROBLEM.
These were not "auto roll" transactions.
In using the auto roll feature last year I was getting a delay of the new issue by one "maturing date" so I stopped doing it.
The maturing date of the existing bill bought at auction and the trade date of the new bill are the same. But the settlement date of the new bill is the next day. NO PROBLEM.
These were not "auto roll" transactions.
In using the auto roll feature last year I was getting a delay of the new issue by one "maturing date" so I stopped doing it.
- Wed Feb 07, 2024 2:17 pm
- Forum: Investing - Theory, News & General
- Topic: Trading Treasuries (nominal and TIPS)
- Replies: 4106
- Views: 455177
Re: Trading Treasuries (nominal and TIPS)
Checking my notes I found this quote from Schwab in a ROTH account:
"1.This account does not have sufficient funds to cover the cost of this order, including any open orders you might have currently. If you would like to place this trade, please reduce the total amount of this order."
However I am not sure that the purchase was for the following note not the current note.
I am currently using a T-bill ladder and am not using auto roll. I have a vague recollection of meaning to test out the delay but have not tried it.
- Wed Feb 07, 2024 9:51 am
- Forum: Investing - Theory, News & General
- Topic: Slice and dice
- Replies: 16
- Views: 1359
Re: Slice and dice
A long long time ago I used Ferry's slice and dice type of portfolio.
No longer.
1) Large cap foreign and domestic companies are "world" companies. By choosing one over the other you are mostly "banking" on currency differences and are also losing the tax benefits on the foreign portion of the funds.
2) Pacific small cap makes me lose sleep for political unrest reasons.
3) European small cap is OK but you don't get the tax benefits of the distributions.
4) I still use some international small cap and international value.
- Mon Feb 05, 2024 9:42 am
- Forum: Investing - Theory, News & General
- Topic: Duration of a bond ladder
- Replies: 2
- Views: 460
Re: Duration of a bond ladder
No. The fund is buying new issues as they are issued. So a 1-5 fund is buying new issues that are less than five years when issued. That means fives, threes, and twos. If I remember correctly. Also your are holding to maturity and the fund is selling at one year.
That said you can come close to a 1-5 fund buying just fives. Getting your ladder to match the fund exactly would require buying more than just one maturity.
(Currently I have a 0-3 ladder to simulate a 1-3 fund. Buying only three's. But that's just because I got tired of entering all the monthly coupon payments from a fund.)
- Wed Jan 31, 2024 11:13 am
- Forum: Investing - Theory, News & General
- Topic: Taxation of Treasury bills, notes and bonds
- Replies: 1027
- Views: 149298
- Mon Jan 22, 2024 10:06 am
- Forum: Investing - Theory, News & General
- Topic: Treasury STRIPS, Any difference in Interest or Principle Bonds?
- Replies: 9
- Views: 2066
Re: Treasury STRIPS, Any difference in Interest or Principle Bonds?
And Schwab downloads to Quicken report maturing T-Bills only as "Matured".
(Schwab's 1099s aren't due yet for several weeks. Time will tell.)
- Sun Jan 21, 2024 3:11 pm
- Forum: Investing - Theory, News & General
- Topic: Treasury STRIPS, Any difference in Interest or Principle Bonds?
- Replies: 9
- Views: 2066
Re: Treasury STRIPS, Any difference in Interest or Principle Bonds?
Principal is taxed by the state. Treasury interest not taxed in many states.
Small difference usually but not zero.
- Tue Jan 16, 2024 10:15 am
- Forum: Investing - Theory, News & General
- Topic: Short Bond Fund vs Rolling T-Bills
- Replies: 8
- Views: 1413
Re: Short Bond Fund vs Rolling T-Bills
I don't care and it is impossible to predict with any confidence given the current inflation and future presidential uncertainty.zero_coupon wrote: ↑Mon Jan 15, 2024 11:15 pm ... what's a reasonable proxy to represent the performance of rolling 1-year T-Bills? ...
As a result, about 15 months ago I started putting most of my Treasury allotment into 26 week bills about once a month. This was due primarily to the Fed raising rates almost every meeting.
As the Fed rate increases have stopped recently and there is a possibility of actual overnight rate decreases during the rest of this year I have decided to roll every other rung in my 26 week ladder to 52 weeks as the bills mature.
I don't foresee any change in my plan prior to the November election.
- Sat Dec 30, 2023 10:58 am
- Forum: Investing - Theory, News & General
- Topic: Trading Treasuries (nominal and TIPS)
- Replies: 4106
- Views: 455177
Re: Trading Treasuries (nominal and TIPS)
Doc wrote: ↑Sat Dec 30, 2023 10:55 amI had almost exactly the same pair of trades at Schwab but last week in a margin account. I got billed for a small amount of interest.Kevin M wrote: ↑Sat Dec 30, 2023 10:21 am Want to share a trade that I find interesting. It involves the sale of ETF shares and the purchase of Treasuries, and due to the latter, I think it fits in the "trading Treasuries" thread.
On Thursday, 12/28, I sold shares of VTI in my Roth IRA at Schwab. ETF trades settle on T+2, so due to the weekend and holiday, this settles on Tuesday 1/2. The proceeds showed as "available to trade".
...
Was this a settlement violation or any other type of trade violation?
So at least Schwab recognizes the settlement day differences even if how they settle the issue is weird.
- Sat Dec 30, 2023 10:55 am
- Forum: Investing - Theory, News & General
- Topic: Trading Treasuries (nominal and TIPS)
- Replies: 4106
- Views: 455177
Re: Trading Treasuries (nominal and TIPS)
I had almost exactly the same pair of trades at Schwab but in a margin account. I got billed for a small amount of interest.Kevin M wrote: ↑Sat Dec 30, 2023 10:21 am Want to share a trade that I find interesting. It involves the sale of ETF shares and the purchase of Treasuries, and due to the latter, I think it fits in the "trading Treasuries" thread.
On Thursday, 12/28, I sold shares of VTI in my Roth IRA at Schwab. ETF trades settle on T+2, so due to the weekend and holiday, this settles on Tuesday 1/2. The proceeds showed as "available to trade".
...
Was this a settlement violation or any other type of trade violation?
So at least Schwab recognizes the settlement day differences even if how they settle the issue is weird.
- Thu Dec 21, 2023 12:16 pm
- Forum: Investing - Theory, News & General
- Topic: Trading Treasuries (nominal and TIPS)
- Replies: 4106
- Views: 455177
Re: Trading Treasuries (nominal and TIPS)
Regarding MM funds vs. T-Bills at Schwab.
I use Quicken for my record keeping. Schwab's down loading of T-Bill data is a PITA. (T-bill matured vs. interest plus return of capital.) I therefore use the MM funds instead of T-Bills for small amounts. I'll eat the extra fee of the MM fund.
(I actually save money since I don't need to buy as much Maalox. )
I use Quicken for my record keeping. Schwab's down loading of T-Bill data is a PITA. (T-bill matured vs. interest plus return of capital.) I therefore use the MM funds instead of T-Bills for small amounts. I'll eat the extra fee of the MM fund.
(I actually save money since I don't need to buy as much Maalox. )
- Thu Dec 21, 2023 9:28 am
- Forum: Investing - Theory, News & General
- Topic: Trading Treasuries (nominal and TIPS)
- Replies: 4106
- Views: 455177
Re: Trading Treasuries (nominal and TIPS)
By "money market" are you referring to their settlement fund or their two "normal" funds that aim at constant $1.00 price?jeffyscott wrote: ↑Thu Dec 21, 2023 9:21 am To save the money market ER at Schwab, I am moving a little to some treasuries.
Small price to pay for the convenience if you have small total amounts invested.
- Sat Dec 09, 2023 9:54 am
- Forum: Investing - Theory, News & General
- Topic: Reinvest vs Deposit to Core
- Replies: 15
- Views: 3253
Re: Reinvest vs Deposit to Core
Way, way back I recall that brokers are required to report wash sales only with the same ticker and in the same account. Not knowing if this is still true I still do not buy the replacement with the same ticker even in an IRA.jeffyscott wrote: ↑Fri Dec 08, 2023 9:30 am But if you want to rebalance in IRAs (and HSA), you can just sell and buy whenever you want to, with no thought given to taxes or which "lots" you are selling.
I do buy "similar" fund/ETF in the IRA and reverse the trades after 30 days.
- Mon Dec 04, 2023 9:44 am
- Forum: Investing - Theory, News & General
- Topic: Individual Bond (Rolling ladder) vs Bond Fund - the new Dividend/no dividend argument?
- Replies: 16
- Views: 2325
Re: Individual Bond (Rolling ladder) vs Bond Fund - the new Dividend/no dividend argument?
If you hold a "rolling bond ladder", meaning you're not spending down the money as the bond matures, and instead buying more bonds, then it's functionally equivalent to what a bond fund with the same relative duration/maturities would be. No A bond fund buys new bonds when they are offered. So a 1-10 fund is buying new tens, sevens, fives and threes. A 1-10 ladder is only buying tens. If you have say a three-ladder it usually results in capitla gain on the sale. The cap gain is likely more than from the fund because it gets a smaller cap gain from the shorter bonds. Additionally you can set up your ladder to maximize the CG. In normal times one would set up their ladder to have the "bend over" in the yield curve at the ...
- Sat Nov 18, 2023 4:13 pm
- Forum: Investing - Theory, News & General
- Topic: Is VXUS investing in China too Risky?
- Replies: 71
- Views: 6811
Re: Is VXUS investing in China too Risky?
I do not invest in Emerging Markets.
The extra cost for the Maalox is too much of an expense.
The extra cost for the Maalox is too much of an expense.
- Fri Nov 17, 2023 9:35 am
- Forum: Investing - Theory, News & General
- Topic: Color coding on Treasury Auction Schedule?
- Replies: 5
- Views: 1068
Re: Color coding on Treasury Auction Schedule?
52 week is dark yellow.
Other "groups" are also color coded. So if you are wanting a certain maturity it is easy to find all the choices by looking at the colors.
- Thu Nov 02, 2023 1:24 pm
- Forum: Investing - Theory, News & General
- Topic: Trading Treasuries (nominal and TIPS)
- Replies: 4106
- Views: 455177
Re: Trading Treasuries (nominal and TIPS)
Just looked at both Schwab and Vanguard. Both the same. The price agrees with the value in the balances tables. There is no separate addition to the value for the inflation factor. It is built into the MARKET price.Kevin M wrote: ↑Thu Nov 02, 2023 12:34 pm Now that I wrote all that, I reread your post, and I think that you're talking about a price that Vanguard shows on your balances and holdings page, but maybe what I wrote might still be useful to you or others. Apparently they're using a different price in calculating the value of your holding, or perhaps a different inflation factor. You should use the inflation factor for the settlement date, so for a sale today, you'd use the IF for tomorrow.
- Sun Oct 29, 2023 2:49 pm
- Forum: Investing - Theory, News & General
- Topic: Expected return for holding TIPS as a portfolio asset
- Replies: 65
- Views: 12675
Re: Expected return for holding TIPS as a portfolio asset
The EXPECTED return for holding TIPS is the same as the EXPECTED return for holding nominals.
TIPS protect us from UNEXPECTED inflation. If there is no unexpected inflation the return for both should be the same.
If inflation is higher than expected TIPS win, if inflation is lower than expected nominals win.
Each of us has to make the decision of one over the other based on our own personal risk of unexpected inflation.
(There is an "insurance" cost for that inflation protection so the TIPS will underperform on average.)
TIPS protect us from UNEXPECTED inflation. If there is no unexpected inflation the return for both should be the same.
If inflation is higher than expected TIPS win, if inflation is lower than expected nominals win.
Each of us has to make the decision of one over the other based on our own personal risk of unexpected inflation.
(There is an "insurance" cost for that inflation protection so the TIPS will underperform on average.)
- Sun Oct 29, 2023 1:40 pm
- Forum: Investing - Theory, News & General
- Topic: Is SCV always a long term winner
- Replies: 40
- Views: 4418
Re: Is SCV always a long term winner
That's one of the reasons for rebalancing.dharrythomas wrote: ↑Sun Oct 29, 2023 1:36 pm Over the long term, SCV historically has beaten the market BUT none of use gets the long term. We each get a particular slice of the long term that matches our individual investment timeframe.
It is like gambling with a mathematical edge. The strategy will win over the fullness of time, but any one individual can lose everything before the law of large numbers catches up. SCV has higher expected returns, your mileage may vary.
- Sun Oct 29, 2023 12:02 pm
- Forum: Investing - Theory, News & General
- Topic: Tax-Loss Harvest Partner Funds
- Replies: 48
- Views: 5714
Re: Tax-Loss Harvest Partner Funds
I don't haven't time to read this whole post so the following might already have been addressed. For example, if an investor sells the SPDR S&P 500 ETF (SPY) at a loss, they can immediately turn around and purchase the Vanguard S&P 500 ETF. Tax-loss harvesting has become increasingly popular as algorithmic trading and investment management services such as robo-advisors are able to tax loss harvest on your behalf automatically. https://www.investopedia.com/terms/s/substantiallyidenticalsecurity.asp IIRC: 1) Selling an ETF and buying a option to buy the exact same ETF within the 30 day window is considered a wash sale. 2) Some time in the past it was posted there that the brokers report wash sale only for the exact same ETF in the sa...
- Sun Oct 29, 2023 11:02 am
- Forum: Investing - Theory, News & General
- Topic: Is SCV always a long term winner
- Replies: 40
- Views: 4418
Re: Is SCV always a long term winner
I rebalnce based on bands of 5% absolute and 25% relative. And I overweight small cap especially SCV.
I have never had small cap trigger a need to rebalnce. So my answer to the OP is YES.
I have never had small cap trigger a need to rebalnce. So my answer to the OP is YES.
- Sat Oct 21, 2023 11:43 am
- Forum: Investing - Theory, News & General
- Topic: Vanguard International Core Stock Fund (VWICX/VZICX)
- Replies: 12
- Views: 2298
Re: Vanguard International Core Stock Fund (VWICX/VZICX)
To make your decisions more or possibly less complicated here is another consideration:sperry8 wrote: ↑Sat Oct 21, 2023 6:14 am Nice returns on this but that 1.26% expense ratio
I was considering buying more VWILX (Vanguard International Growth Adm) due to the recent drop in NAV... but was considering the newer VWICX (Vanguard International Core Stock Fund) as well. Ahhh, decisions, decisions.
I avoid funds with significant allocation to foreign emerging markets because I don't want the "uncertainty" of Chinese investments.
- Thu Oct 19, 2023 10:56 am
- Forum: Investing - Theory, News & General
- Topic: Trading Treasuries (nominal and TIPS)
- Replies: 4106
- Views: 455177
Re: Trading Treasuries (nominal and TIPS)
Wow, didn't know this.Kevin M wrote: ↑Wed Oct 18, 2023 1:48 pm The point is that Schwab allows you to exceed the cash in the settlement bank account by the amount you have in purchased money market funds, with the underlying assumption (included in the warning) that you'll sell enough of the purchased MM fund to cover the purchase. Since both Ts and MM funds have T+1 settlement, it all matches up when buying Ts. When buying ETFs, you actually have an extra day to sell the MM fund I guess, since ETFs settle T+2 until next year.
- Wed Oct 18, 2023 10:48 am
- Forum: Investing - Theory, News & General
- Topic: Trading Treasuries (nominal and TIPS)
- Replies: 4106
- Views: 455177
Re: Trading Treasuries (nominal and TIPS)
I actually tried to buy a bit more VTIP than could be covered by cash plus MM, planning to sell a bit of a stock or bond fund to cover it, but was not allowed to do so, which verifies that Schwab only considers MM funds in allowing you to use more than your available cash (unless you have margin). Schwab's settlement "fund" is Schwab bank. The money market FUND s are not settlement funds but just "ordinary" mutual funds that maintain a $1.00 per share price. Any trade (buy or/sell) of these cash type mutual fund settle the next business day. Schwab changed their cash available methodology (on May 5 ?) to allow trading on unsettled cash - like an open order for trading on unsettled money from the sale in one of these MM ...
- Mon Oct 16, 2023 12:27 pm
- Forum: Investing - Theory, News & General
- Topic: Trading Treasuries (nominal and TIPS)
- Replies: 4106
- Views: 455177
Re: Trading Treasuries (nominal and TIPS)
Schwab changed their cash available to trade a few months ago. With that change they allowed unsettled cash to be use to trade BUT that unsettled cash doesn't show up on your account until settlement day (or business close on settlement day). Thank you Charles. :P Assuming the interest from April TIPS, which was due to be paid yesterday but is not yet in my Schwab account, is the sort of thing that you mean by "unsettled cash", the ability to use it before it shows up in the account would appear to depend on what you are buying. As a test, I tried buying $100 of VTAPX and Schwab would not allow it. I have tried and failed with this sort of test before with mutual funds and it continues to not be allowed. My experience has been wh...
- Fri Oct 13, 2023 2:12 pm
- Forum: Investing - Theory, News & General
- Topic: Deferring bond yield
- Replies: 11
- Views: 1374
- Fri Oct 13, 2023 2:10 pm
- Forum: Investing - Theory, News & General
- Topic: Trading Treasuries (nominal and TIPS)
- Replies: 4106
- Views: 455177
Re: Trading Treasuries (nominal and TIPS)
I recently had Ts mature at Fido on Saturday, and the interest was available to withdraw on Sunday (I didn't check Saturday). Of course you can't transfer or reinvest it on the weekend, but you could do a debit card purchase against it. That's I interesting, I have never seen anything credited on a weekend at Schwab. I'd assumed that was because Treasury (and banks for CDs) only paid on business days. Not that it matters to me, since I never buy anything with a debit card. Schwab changed their cash available to trade a few months ago. With that change they allowed unsettled cash to be use to trade BUT that unsettled cash doesn't show up on your account until settlement day (or business close on settlement day). Thank you Charles. :P
- Wed Oct 11, 2023 10:45 am
- Forum: Investing - Theory, News & General
- Topic: Taxation of Treasury bills, notes and bonds
- Replies: 1027
- Views: 149298
Re: Taxation of Treasury bills, notes and bonds
Artsdoctor wrote: ↑Tue Oct 10, 2023 6:09 pm In the "old" days, you'd set up some sort of ladder if you wanted treasuries and liquidity. You could have a rolling series of 6-month T-bills maturing every 4-8 weeks in order to capture the higher yields of the 6-month bill.
OLD DAYS? Some 80% of our Treasury position is currently in a 26 WEEK T-bill ladder.
The balance is in notes shorter than 2 years that are leftover from a 1-3 "index" position.
I probably will not change my strategy until November 6, 2024.
- Sat Oct 07, 2023 10:29 am
- Forum: Investing - Theory, News & General
- Topic: Trading Treasuries (nominal and TIPS)
- Replies: 4106
- Views: 455177
Re: Trading Treasuries (nominal and TIPS)
I had an incident a few months ago when I got a "BIG RED FLAG" one morning from Schwab saying I didn't have enough funds to cover a purchase closing that morning. Discussion with Schwab blamed the issue on the Fed being late to report deposits.jeffyscott wrote: ↑Fri Oct 06, 2023 2:54 pmIn my experience, yes there's a delay with coupon payments at Schwab. I've not looked closely enough to see if the timing is consistent, but I sometimes lose a day before reinvesting.indexfundfan wrote: ↑Fri Oct 06, 2023 2:32 pm Does Schwab delay the credit to mid-day or the next business day? Anyone knows?
The flag disappeared a short time late along with the Fed deposit showing up.
- Tue Oct 03, 2023 10:02 am
- Forum: Investing - Theory, News & General
- Topic: Trading Treasuries (nominal and TIPS)
- Replies: 4106
- Views: 455177
Re: Trading Treasuries (nominal and TIPS)
Schwab changed this "available to trade" policy about 2 or 3 moths ago. Unfortunately they did not update their site to actually show the amount available until the actual maturity date.
Work in progress????
- Sun Oct 01, 2023 10:18 am
- Forum: Investing - Theory, News & General
- Topic: What’s So Bad About Cash (v. Buying a Bond Fund)?
- Replies: 122
- Views: 9806
Re: What’s So Bad About Cash (v. Buying a Bond Fund)?
??? If I buy a bond mutual fund or ETF some of the holdings in that fund although purchased at $1,000 by the fund may no longer be priced at $1,000 when I buy the fund . So if the fund holds that bond to maturity (or whenever the funds portfolio states) that bond might have a capital gain. Why is a capital gain bad? Bond coupons are ordinary income. The capital gain isn't going to be any worse, and might be better, than income. I was addressing the point that the that there were no capital gains, not whether cap gains are better of worse than ordinary income. Ordinary income in the form of of bond coupons could be better or worse than cap gains depending on many things like state income tax and your cap gains rate etc. I wasn't addressing ...
- Sat Sep 30, 2023 11:18 am
- Forum: Investing - Theory, News & General
- Topic: What’s So Bad About Cash (v. Buying a Bond Fund)?
- Replies: 122
- Views: 9806
Re: What’s So Bad About Cash (v. Buying a Bond Fund)?
??? If I buy a bond mutual fund or ETF some of the holdings in that fund although purchased at $1,000 by the fund may no longer be priced at $1,000 when I buy the fund. So if the fund holds that bond to maturity (or whenever the funds portfolio states) that bond might have a capital gain.
- Fri Sep 29, 2023 1:55 pm
- Forum: Investing - Theory, News & General
- Topic: Taxation of Treasury bills, notes and bonds
- Replies: 1027
- Views: 149298
Re: Taxation of Treasury bills, notes and bonds
Schwab introduced an auto-roll feature some 2-4 months ago. I am testing it out with 4 week T-bills. So far there is a one auction delay in buying the new bill.MacktheKnife wrote: ↑Thu Sep 28, 2023 3:30 pm Does Schwab offer auto-roll that works like Fidelity? (i.e. just set it and forget it)
One of these days I am going to try to get more information.
(We currently have a large 26 week T-Bill ladder with rungs maturing the same time as a 52 week bill, and I want to set up auto-roll but the one week delay would stir the pooch.)
- Sun Sep 24, 2023 11:14 am
- Forum: Investing - Theory, News & General
- Topic: Tax loss harvesting a stock and then trading an option?
- Replies: 14
- Views: 1986
Re: Tax loss harvesting a stock and then trading an option?
There is a difference between what I broker is required to report and what actually is a wash sale.
Whether the IRS "finds" the wash sale even though the broker doesn't report it you are going to lose.
I find the "surest" wat to avoid the risk is to buy a substitute that is not substantially identical. For example a fund/ETF/option for a security that does not follow the exact same index.
Whether the IRS "finds" the wash sale even though the broker doesn't report it you are going to lose.
I find the "surest" wat to avoid the risk is to buy a substitute that is not substantially identical. For example a fund/ETF/option for a security that does not follow the exact same index.
- Wed Sep 06, 2023 2:21 pm
- Forum: Investing - Theory, News & General
- Topic: T-Bills instead of Bonds?
- Replies: 18
- Views: 3324
Re: T-Bills instead of Bonds?
The thread author refers to "ultras short duration fixed income". Why is everyone "arguing" about the long- term return of of T-bills?
- Sat Sep 02, 2023 2:31 pm
- Forum: Investing - Theory, News & General
- Topic: Trading Treasuries (nominal and TIPS)
- Replies: 4106
- Views: 455177
Re: Trading Treasuries (nominal and TIPS)
U S Treasury Note Cpn 2.37500 % Mtd 2024-02-29 Dtd 2019-02-28 pays interest on Thursday August 31. I was trying to use the funds near the end of the trading day on Friday Sept 1, which would seem more than enough time for the funds to show in my settlement account. Two observations: 1) You are addressing Vanguard and I am addressing Schwab. 2) Normally(?) we would expect the Treasury to send the amount due whether interest or principle before start of business on the settlement date. According to Schwab they don't get the money until a hour or so AFTER start of business. So neither broker would show the funds at start of business. Schwab apparently posts shortly after they receive the money but Vanguard doesn't report it until after close ...
- Sat Sep 02, 2023 11:08 am
- Forum: Investing - Theory, News & General
- Topic: Trading Treasuries (nominal and TIPS)
- Replies: 4106
- Views: 455177
Re: Trading Treasuries (nominal and TIPS)
A similar type situation happened to me several weeks ago at Schwab. (I think it was posted up thread.) But the "explanation" from the Schwab expert was that the Treasury does not always report the cash to an hour or more AFTER the start of trading on settlement day.
Hence the money may not show up in ones settlement account until after close of business that day even though it is there.
- Fri Sep 01, 2023 11:10 am
- Forum: Investing - Theory, News & General
- Topic: Trading Treasuries (nominal and TIPS)
- Replies: 4106
- Views: 455177
Re: Trading Treasuries (nominal and TIPS)
I belive that a treasury BILL pays back the face value at maturity. In your case you should get back $900 as capital and $100 in interest. (I'm assuming from your data that you paid $900 at purchase.)
(One of the bond gurus can correct me if I am wrong.)
- Sat Aug 26, 2023 2:15 pm
- Forum: Investing - Theory, News & General
- Topic: Trading Treasuries (nominal and TIPS)
- Replies: 4106
- Views: 455177
Re: Trading Treasuries (nominal and TIPS)
No because we have a grandchildren portfolio not a liability matching portfolio.protagonist wrote: ↑Sat Aug 26, 2023 1:28 pm I'm curious...
Anybody here over 70 y o who is buying TIPS with maturities in 2040s and beyond? And why?
Also way back (2005?) when the Boglehead mantra "TIPS are just like nominals except for inflation protection" turned out to be completely false when the stock market tanked. (Nominal value went up and TIPS value went down/tanked.)
- Fri Aug 25, 2023 2:43 pm
- Forum: Investing - Theory, News & General
- Topic: Trading Treasuries (nominal and TIPS)
- Replies: 4106
- Views: 455177
Re: Trading Treasuries (nominal and TIPS)
No TIPS 3:43 Eastern.
- Thu Aug 24, 2023 1:26 pm
- Forum: Investing - Theory, News & General
- Topic: Exchanging bond funds for Treasuries - part 2 [Updated title]
- Replies: 96
- Views: 13705
Re: Issues with buying Treasuries and giving up on bond funds?
You also lose the opportunity to tax GAIN harvest when you own a fund instead of individual bonds and thus move ordinary income into LTCG.)jeffyscott wrote: ↑Thu Aug 24, 2023 6:53 am I understand that, but you lose the opportunity to TLH whether you own a fund or individual bonds.
(OK, with today's curve the TGH is unlikely to be very meaningful. And means nothing if you are in a ROTH.)
- Wed Aug 23, 2023 3:00 pm
- Forum: Investing - Theory, News & General
- Topic: Bond funds in IRA and state tax on distribution
- Replies: 11
- Views: 1127
- Wed Aug 23, 2023 1:14 pm
- Forum: Investing - Theory, News & General
- Topic: Vanguard changed their website
- Replies: 30
- Views: 5213