Search found 14507 matches

by rkhusky
Fri Mar 24, 2023 6:46 pm
Forum: Personal Investments
Topic: Asset allocation in pre-retirement years to mitigate sequence of returns.
Replies: 20
Views: 943

Re: Asset allocation in pre-retirement years to mitigate sequence of returns.

You can also withdraw contributions to a Roth tax and penalty free.

You can also do a Roth conversion at the same time as withdrawing Roth contributions, which effectively allows penalty-free tIRA withdrawals before 59.5.

I chose to put stocks in taxable and rebalance stocks/bonds in tax-advantaged. In the event of a big downturn, your rebalancing will be larger than spending requirements.
by rkhusky
Fri Mar 24, 2023 3:21 pm
Forum: Personal Investments
Topic: Wellington VWENX for income in retirement
Replies: 48
Views: 3639

Re: Wellington VWENX for income in retirement

FactualFran wrote: Fri Mar 24, 2023 2:30 pm
rkhusky wrote: Fri Mar 24, 2023 11:00 am Why is having the same number of shares important enough to go through the hassle of an in-kind transfer from an IRA?
It can be important to some, such as to those who want to avoid the possibility of a loss in value if the price of the investment increases while temporarily having fewer shares. To some, doing an in-kind transfer transaction is not more of a hassle than doing a combination of sell and buy transactions. Those who consider an in-kind transfer to be a hassle can chose not to do it.
Yes, even though one is almost as likely to gain as lose for being out of the market for a day, loss aversion can be difficult to overcome.
by rkhusky
Fri Mar 24, 2023 11:44 am
Forum: Personal Investments
Topic: Wash sale rules, an investor, and his IDGT.
Replies: 2
Views: 211

Re: Wash sale rules, an investor, and his IDGT.

Trusts are included in wash sale rules.

Also look at the related party transaction law that is also described in Pub 550. The taxpayer and the grantor of the trust are related parties in your hypothetical.

Edit: also the grantor and the fiduciary are considered related parties.
by rkhusky
Fri Mar 24, 2023 11:11 am
Forum: Personal Investments
Topic: Wellington VWENX for income in retirement
Replies: 48
Views: 3639

Re: Wellington VWENX for income in retirement

No, you can transfer shares in-kind to a taxable account to satisfy your RMD. You don’t have to sell them within the IRA first. But you will owe taxes on the RMD even if you do the in-kind transfer. What’s the point of in-kind in that case? Edit: Does Vanguard even keep track of share info in an IRA (basis, date)? A point is to have the same number of shares in the taxable account as were in the tax-advantaged account. During the time it takes for the cash to be transferred and to become available in the taxable account to rebuy the shares, the price could change, and for the same dollar amount the number of shares would be different in the taxable account than it was in the tax-advantage account. Why is having the same number of shares im...
by rkhusky
Fri Mar 24, 2023 11:10 am
Forum: Personal Investments
Topic: Wellington VWENX for income in retirement
Replies: 48
Views: 3639

Re: Wellington VWENX for income in retirement

I did not realize I could transfer shares to the taxable account to satisfy RMD, that is extremely helpful. Thank you! It’s not really a transfer. You sell shares in the IRA (and owe taxes) and use the cash to buy in taxable. No, you can transfer shares in-kind to a taxable account to satisfy your RMD. You don’t have to sell them within the IRA first. But you will owe taxes on the RMD even if you do the in-kind transfer. What’s the point of in-kind in that case? Edit: Does Vanguard even keep track of share info in an IRA (basis, date)? If you want to keep the investment, you don’t have sell and then re-buy. You just transfer. The cost basis for the transferred shares is set on the date of the transfer (or maybe the date they show up in the...
by rkhusky
Fri Mar 24, 2023 11:00 am
Forum: Personal Investments
Topic: Wellington VWENX for income in retirement
Replies: 48
Views: 3639

Re: Wellington VWENX for income in retirement

No, you can transfer shares in-kind to a taxable account to satisfy your RMD. You don’t have to sell them within the IRA first. But you will owe taxes on the RMD even if you do the in-kind transfer. What’s the point of in-kind in that case? Edit: Does Vanguard even keep track of share info in an IRA (basis, date)? A point is to have the same number of shares in the taxable account as were in the tax-advantaged account. During the time it takes for the cash to be transferred and to become available in the taxable account to rebuy the shares, the price could change, and for the same dollar amount the number of shares would be different in the taxable account than it was in the tax-advantage account. Why is having the same number of shares im...
by rkhusky
Thu Mar 23, 2023 7:36 pm
Forum: Personal Investments
Topic: S&P 500 concentration risk: Should we be worried?
Replies: 36
Views: 3166

Re: S&P 500 concentration risk: Should we be worried?

Consider the diversification within each of the largest companies versus the diversification within the smallest companies.
by rkhusky
Thu Mar 23, 2023 7:24 pm
Forum: Personal Investments
Topic: Wellington VWENX for income in retirement
Replies: 48
Views: 3639

Re: Wellington VWENX for income in retirement

You don’t have to sell shares to meet your RMD requirements. You can simply take the RMD amount in kind, by transferring the shares from the IRA to a regular taxable brokerage account. The funds don't have to be sold, but that’s your choice either way. I did not realize I could transfer shares to the taxable account to satisfy RMD, that is extremely helpful. Thank you! It’s not really a transfer. You sell shares in the IRA (and owe taxes) and use the cash to buy in taxable. No, you can transfer shares in-kind to a taxable account to satisfy your RMD. You don’t have to sell them within the IRA first. But you will owe taxes on the RMD even if you do the in-kind transfer. What’s the point of in-kind in that case? Edit: Does Vanguard even keep...
by rkhusky
Thu Mar 23, 2023 7:23 pm
Forum: Personal Investments
Topic: TSP asset allocation
Replies: 18
Views: 2318

Re: TSP asset allocation

rosemary11 wrote: Thu Mar 23, 2023 4:53 pm The simplest AA to achive constant 60 percent stocks 40 percent fixed G
Now
60 percent. L2065
40 percent G fund

Sometime after 10 yrs
60 percent L 2075 or 2080
40 percent G fund
+1
by rkhusky
Thu Mar 23, 2023 1:36 pm
Forum: Investing - Theory, News & General
Topic: [Debt ceiling discussion mega-thread]
Replies: 459
Views: 34286

Re: [Debt ceiling discussion mega-thread]

ray.james wrote: Wed Mar 22, 2023 3:14 pm It is just surprising, how quiet media and people are on debt ceiling limit. In 2011, I remember watching some news every week about some senators etc., discussing across party aisles to reach an agreement. Considering what is going on in news cycle right now, it is just crazy, there is no thought being wasted on debt ceiling!
Because it is not going to get serious until June. Once national parks start closing, people will pay attention.
by rkhusky
Thu Mar 23, 2023 1:10 pm
Forum: Personal Investments
Topic: Wellington VWENX for income in retirement
Replies: 48
Views: 3639

Re: Wellington VWENX for income in retirement

msaffer wrote: Thu Mar 23, 2023 12:38 pm
chickadee wrote: Wed Mar 22, 2023 5:49 pm You don’t have to sell shares to meet your RMD requirements. You can simply take the RMD amount in kind, by transferring the shares from the IRA to a regular taxable brokerage account. The funds don't have to be sold, but that’s your choice either way.
I did not realize I could transfer shares to the taxable account to satisfy RMD, that is extremely helpful. Thank you!
It’s not really a transfer. You sell shares in the IRA (and owe taxes) and use the cash to buy in taxable.

You can transfer RMD’s to charity via QCD’s: https://www.bogleheads.org/wiki/Qualifi ... tributions
by rkhusky
Thu Mar 23, 2023 1:07 pm
Forum: Personal Investments
Topic: Wellington VWENX for income in retirement
Replies: 48
Views: 3639

Re: Wellington VWENX for income in retirement

Note that when stock dividends are paid the stock price goes down, such that you have the same amount after the dividend as before. Stock funds are the same. I would not call that income.

Bond dividends are different. They are real income.

Wellington has both. Wellesley has more bond income.
by rkhusky
Thu Mar 23, 2023 11:21 am
Forum: Personal Investments
Topic: TLH on CA tax exempt muni
Replies: 14
Views: 728

Re: TLH on CA tax exempt muni

You could also put the proceeds into the national intermediate TE fund which probably correlates with the CA funds.
by rkhusky
Thu Mar 23, 2023 9:47 am
Forum: Personal Investments
Topic: I'm Lost Regarding Tax Consequences
Replies: 26
Views: 2436

Re: I'm Lost Regarding Tax Consequences

Doctor Rhythm wrote: Wed Mar 22, 2023 5:15 pm Unless they feel it is likely that Company X will grow faster than the total market in the future, they should sell X and buy total stock.
Feelings caused the OP to lose 70% Don’t trust your feelings when investing.

If the money that you have in crypto right now was in cash, would you buy crypto now or would you buy something else, like Total Stock Market? If something else, sell the crypto, get the cash, and buy the something else.

Waiting to get back to even is an example of a cognitive bias called Anchoring. You want to avoid cognitive biases as much as possible. They are a fascinating subject however: https://en.m.wikipedia.org/wiki/List_of ... ive_biases
by rkhusky
Thu Mar 23, 2023 9:11 am
Forum: Investing - Theory, News & General
Topic: Tax-loss harvesting is coming to Vanguard Digital Advisor
Replies: 8
Views: 806

Re: Tax-loss harvesting is coming to Vanguard Digital Advisor

It would be nice to be able to set the minimum loss to harvest and acceptable TLH partners so as to avoid wash sales with other accounts. I assume this would be using ETF’s that can trade any time of day. You are asking for a lot. My guess is they will do something simple like VTI with VOO or VV, and VXUS with VEU and maybe not much more. I'd be very surprised if they will TLH between VBR and VIOV, for example, since they really don't acknowledge VIOV exists and likely don't want to channel assets into an ETF that has S&P licensing fees. Hell will freeze over before they use a non-Vanguard ETF. Plus SCV isn't in their advisory strategy. Once you have the automated TLH system set up with ETF’s, it doesn’t seem like a big leap to allow s...
by rkhusky
Thu Mar 23, 2023 8:00 am
Forum: Investing - Theory, News & General
Topic: [Bank failure discussion mega-thread]
Replies: 2126
Views: 141125

Re: [Bank failure discussion mega-thread]

Can one buy insurance to cover FDIC shortfalls? If so, not sure why the government has to provide more than $250K.
by rkhusky
Wed Mar 22, 2023 7:44 pm
Forum: Personal Finance (Not Investing)
Topic: How long should I plan for it to take for money to go from Vanguard fund to my checking account?
Replies: 35
Views: 2281

Re: How long should I plan for it to take for money to go from Vanguard fund to my checking account?

My bank has implemented accelerated deposit access. Sometimes I see the transfer from Vanguard to bank in 1 business day. It’s not guaranteed and when it happens it’s late in the day. Same for some direct deposits.
by rkhusky
Wed Mar 22, 2023 1:45 pm
Forum: Personal Investments
Topic: I'm Lost Regarding Tax Consequences
Replies: 26
Views: 2436

Re: I'm Lost Regarding Tax Consequences

If you have a portfolio that has a lot of built in capital gains, it might not make sense to switch except for incrementally, ie sell shares with losses or low cap gains and directing dividends and cap gain distributions to other funds.
by rkhusky
Wed Mar 22, 2023 1:33 pm
Forum: Investing - Theory, News & General
Topic: Tax-loss harvesting is coming to Vanguard Digital Advisor
Replies: 8
Views: 806

Re: Tax-loss harvesting is coming to Vanguard Digital Advisor

It would be nice to be able to set the minimum loss to harvest and acceptable TLH partners so as to avoid wash sales with other accounts. I assume this would be using ETF’s that can trade any time of day.
by rkhusky
Wed Mar 22, 2023 1:26 pm
Forum: Investing - Theory, News & General
Topic: Risk of being out of the market
Replies: 26
Views: 3247

Re: Risk of being out of the market

Regarding breaking the transaction into multiple transactions, consider a simplified situation where there is a 51% probability of the market rising by 1% and a 49% probability of dropping by 1%. If you have $1000 out of the market, the expected return is missing out on a $0.20 gain.

If instead you break the transaction into two $500 transactions and assuming the statistics remains the same, the expected return on each transaction is missing out on two $0.10 gains. The total expected return is therefore -$0.20, the same as before.
by rkhusky
Wed Mar 22, 2023 12:07 pm
Forum: Investing - Theory, News & General
Topic: Risk of being out of the market
Replies: 26
Views: 3247

Re: Risk of being out of the market

Realize that our brains trick us into worrying about losses more than gains. And you are very nearly as likely to win as lose in being out of the market for a few days.

I would reduce the time out of the market as much as possible, adjust other holdings to compensate if feasible, pull the trigger and don’t worry about it.

Edit: I’ve had to transfer 6 figures that had to go by mail in one transaction, which took about a week. If it is sufficiently important, you won’t worry about time out of the market.
by rkhusky
Wed Mar 22, 2023 11:12 am
Forum: Investing - Theory, News & General
Topic: [Bank failure discussion mega-thread]
Replies: 2126
Views: 141125

Re: [Bank failure discussion mega-thread]

Interesting to know why the former risk officer left in April 2022 and what the new one saw in January 2023 when she hired on.
by rkhusky
Wed Mar 22, 2023 11:07 am
Forum: Investing - Theory, News & General
Topic: [Bank failure discussion mega-thread]
Replies: 2126
Views: 141125

Re: [Bank failure discussion mega-thread]

Bonus point: Much has been made of the fact that SVB had no official chief risk officer for 8 months prior to the meltdown. Again, from a professional career perspective this makes perfect sense. Like a rat leaving a sinking ship, the prior CRO saw the writing on the wall and bolted rather than be around when things hit the fan. And once SVB had become technically insolvent, what risk officer would be dumb enough to take the job? Anyone who took a look at the books would see exactly what the problem was. Who wants to destroy their career by becoming the poster child for bank mismanagement? Do people typically get to look at the company books before they take a job? C-roles at huge companies? I can't imagine they wouldn't. I wouldn’t know. ...
by rkhusky
Wed Mar 22, 2023 10:56 am
Forum: Investing - Theory, News & General
Topic: [Bank failure discussion mega-thread]
Replies: 2126
Views: 141125

Re: [Bank failure discussion mega-thread]

Bonus point: Much has been made of the fact that SVB had no official chief risk officer for 8 months prior to the meltdown. Again, from a professional career perspective this makes perfect sense. Like a rat leaving a sinking ship, the prior CRO saw the writing on the wall and bolted rather than be around when things hit the fan. And once SVB had become technically insolvent, what risk officer would be dumb enough to take the job? Anyone who took a look at the books would see exactly what the problem was. Who wants to destroy their career by becoming the poster child for bank mismanagement? Do people typically get to look at the company books before they take a job? SVB wasn’t insolvent until late in the game. Regulators issued warnings tha...
by rkhusky
Tue Mar 21, 2023 8:12 pm
Forum: Personal Investments
Topic: SCV and REIT Tilt Beneficial for Young Investor, Long Horizon?
Replies: 16
Views: 1484

Re: SCV and REIT Tilt Beneficial for Young Investor, Long Horizon?

SCV has a high correlation to the market, so don’t expect huge out-performance (or under-performance) due to a small tilt. Perhaps you will gain a few percent or lose a few percent to a total market approach.
by rkhusky
Tue Mar 21, 2023 6:48 pm
Forum: Personal Finance (Not Investing)
Topic: [Keeping more than FDIC insurance limit in one bank?]
Replies: 86
Views: 6842

Re: [Keeping more than FDIC insurance limit in one bank?]

Hacksawdave wrote: Tue Mar 21, 2023 5:11 pm Back in the very early 70’s as a 7-year-old, I opened my first savings account. I was amazed at the size of bank and the large, bronzed plaque on the entrance. It said, “FSLIC Your savings insured up to $15,000.”

The nice lady explained how banking worked. I was basically loaning the bank my $10 bill; it’s not going into the big vault for safekeeping and I would never get the same exact note back. From that point forward I understood how banking works and “Don’t exceed the limit.” FSLIC was later merged into the FDIC.

With a bank deposit you are loaning money to the bank, with a money market mutual fund deposit you are buying securities.
I think of Mr. Dawes explaining to Michael Banks what his tuppence would become in the bank.
by rkhusky
Tue Mar 21, 2023 1:06 pm
Forum: Personal Investments
Topic: Taxable account restructuring
Replies: 14
Views: 1396

Re: Taxable account restructuring

To restructure slowly: sell shares with losses and/or small gains, don’t reinvest existing dividends, sell shares with gains in 0% LTCG bracket.

Realize that when stock dividends are paid, the share price goes down, such that you have as much money after the dividend as before. (Not true for bond funds.)

Also note that you want a high percentage of qualified dividends in taxable, which Total Stock and 500 Index provide.
by rkhusky
Tue Mar 21, 2023 12:40 pm
Forum: Personal Finance (Not Investing)
Topic: Lifetime Income Illustration - Thrift Savings Plan
Replies: 9
Views: 1172

Re: Lifetime Income Illustration - Thrift Savings Plan

Grt2bOutdoors wrote: Tue Mar 21, 2023 7:01 am
Blue456 wrote: Mon Mar 20, 2023 7:12 pm I noticed that too and I think this is a brilliant idea. Most people don't know what is 4% rule, how much money they would get from annuity, etc. TSP projecting annuity income is a simple way of checking whether you are on track or not.
By law the plan administrator is supposed to show an illustration of what amount of annuity income the plan participant can generate from their accumulated savings. It’s just an illustration.

Showing what the 4% rule could generate has no good purpose. Annuity income is guaranteed, the 4% rule guarantees “nothing”. You can earn more, less or somewhere in-between.
It shows a different option with different risk. Just like 100% bonds vs 100% stocks and variations in between.
by rkhusky
Tue Mar 21, 2023 12:34 pm
Forum: Personal Finance (Not Investing)
Topic: [Keeping more than FDIC insurance limit in one bank?]
Replies: 86
Views: 6842

Re: [Keeping more than FDIC insurance limit in one bank?]

I ran into problems with the FDIC limits on our IRA's about 3 1/2 years ago. Rates were dropping and only one local bank still had a good rate. Brokered CD's were lower. Retired awhile now and more interested in keeping it safe. Wife has over $250,00 in her Roth and I have over $500,000 in mine. The way the FDIC has it set up adding 2 or 3 beneficiaries doesn't make any difference to the limit on an IRA. Your stuck at $250,000 on each IRA. Were going back to brokered CD's now so it won't matter. The FDIC need to make easier people with retirement accounts to keep money safe without having to jockey it all over the place. You could move the excess to a different bank or to a brokerage. Unlikely that Vanguard or Fidelity or Schwab is going b...
by rkhusky
Tue Mar 21, 2023 12:31 pm
Forum: Personal Finance (Not Investing)
Topic: [Keeping more than FDIC insurance limit in one bank?]
Replies: 86
Views: 6842

Re: Do we need to panic about Ally Bank ?

Eno Deb wrote: Tue Mar 21, 2023 9:39 am
rkhusky wrote: Tue Mar 21, 2023 9:15 amWhether it was a run or not is semantics, but a number of large investors happened to withdraw large amounts at the same time, causing the sale of bonds at a $2B loss.
From what I read that's not what happened. Some customers (particularly startups) had withdrawn increasing amounts of money for several months to cover their liquidity needs, because the capital market was drying up for them. That's what eventually forced SVB to sell, which in turn triggered the run when the news got out.
You mean it was a large number of small investors that caused the shortfall?
by rkhusky
Tue Mar 21, 2023 9:15 am
Forum: Personal Finance (Not Investing)
Topic: [Keeping more than FDIC insurance limit in one bank?]
Replies: 86
Views: 6842

Re: Do we need to panic about Ally Bank ?

They have plenty if people don't take all of their money out at once. They held long bonds that temporarily lost value and only had an issue when forced to redeem everything at once. The people running for the door caused the problem they were afraid of. This is not true in SVB's case. They had to sell treasuries at a loss before the bank run happened: https://ir.svb.com/news-and-research/news/news-details/2023/SVB-Financial-Group-Announces-Proposed-Offerings-of-Common-Stock-and-Mandatory-Convertible-Preferred-Stock/default.aspx "Additionally, earlier today, SVB completed the sale of substantially of its available for sale securities portfolio. SVB sold approximately $21 billion of securities, which will result in an after tax loss of...
by rkhusky
Tue Mar 21, 2023 9:06 am
Forum: Investing - Theory, News & General
Topic: How Bad Is Average Cost Basis Method?
Replies: 14
Views: 1669

Re: How Bad Is Average Cost Basis Method?

I use average cost for my short term bond fund, whose price doesn’t change much, because I can sell in dollars, which is easier.

If you switch to SpecID, all subsequent purchases (after a day or so) will use actual cost.
by rkhusky
Tue Mar 21, 2023 8:59 am
Forum: Investing - Theory, News & General
Topic: [Bank failure discussion mega-thread]
Replies: 2126
Views: 141125

Re: [Bank failure discussion mega-thread]

alex_686 wrote: Tue Mar 21, 2023 8:57 am
rkhusky wrote: Tue Mar 21, 2023 7:57 am
fsrph wrote: Tue Mar 21, 2023 12:41 am
The SVB's CEO was a director at the Federal Reserve Bank of San Francisco. The very organization that issued warnings to SVB but didn't follow up with action. Maybe a little to cozy of a relationship?

https://www.thestreet.com/technology/sv ... rful-board

Francis
That should not be allowed. Clear conflict of interest.
How so? The Fed is owned by it’s members banks.

Ah, the joys of a self-regulating industry. On the plus side you have many technically inclined people who really want the industry to be stable.
The same reason companies generally don’t want parents supervising their kids.
by rkhusky
Tue Mar 21, 2023 7:57 am
Forum: Investing - Theory, News & General
Topic: [Bank failure discussion mega-thread]
Replies: 2126
Views: 141125

Re: [Bank failure discussion mega-thread]

fsrph wrote: Tue Mar 21, 2023 12:41 am
The SVB's CEO was a director at the Federal Reserve Bank of San Francisco. The very organization that issued warnings to SVB but didn't follow up with action. Maybe a little to cozy of a relationship?

https://www.thestreet.com/technology/sv ... rful-board

Francis
That should not be allowed. Clear conflict of interest.
by rkhusky
Mon Mar 20, 2023 8:48 pm
Forum: Personal Investments
Topic: Did I give my parents bad advice? VASIX
Replies: 27
Views: 3203

Re: Did I give my parents bad advice? VASIX

The bonds will start paying off once the government stops raising interest rates.
by rkhusky
Mon Mar 20, 2023 7:00 pm
Forum: Personal Finance (Not Investing)
Topic: Lifetime Income Illustration - Thrift Savings Plan
Replies: 9
Views: 1172

Re: Lifetime Income Illustration - Thrift Savings Plan

It would also be useful to see a comparison to the standard 4% rule with several asset allocation amounts.
by rkhusky
Mon Mar 20, 2023 6:55 pm
Forum: Investing - Theory, News & General
Topic: [Bank failure discussion mega-thread]
Replies: 2126
Views: 141125

Re: [Bank failure discussion mega-thread]

nisiprius wrote: Mon Mar 20, 2023 1:56 pm Under Glass-Steagall, until 1999, it was illegal for a bank to have branches in more than one state.
I don’t think that’s completely accurate. I banked with First Interstate Bank in the 80’s and 90’s and they had branches in different states, specifically near my hometown and in the state where I went to college.
by rkhusky
Mon Mar 20, 2023 12:08 pm
Forum: Investing - Theory, News & General
Topic: What counts as an Emergency Fund?
Replies: 153
Views: 8853

Re: What counts as an Emergency Fund?

an emergency fund must meet at least two criteria: 1. It must be liquid and accessible 2. It must be principal-protected To me, this strongly suggests an emergency fund consists of assets like cash in a savings account, iBonds held >1 year, short-term Tbills, etc. Correct. If you have to "sell low" or at a loss to raise emergency cash, it's not an emergency fund. It's a mistake. You can twist yourself into a pretzel trying to justify a stock portfolio as constituting an emergency fund. All I can say to that is, "good luck." You'll need it. This year I've been hit with ~$50K+ of emergency expenses. Without my emergency fund, I would have had to sell stock holdings at a loss. Not good. That's the pitfall with emergency fu...
by rkhusky
Mon Mar 20, 2023 9:18 am
Forum: Personal Finance (Not Investing)
Topic: Help with my 2022 taxes -- how to handle munis in 1099 DIV?
Replies: 4
Views: 410

Re: Help with my 2022 taxes -- how to handle munis in 1099 DIV?

Seems correct.

The national fund will also have NY bonds. Vanguard has a document/page that shows the percentage for each state.

Edit: If you use the national fund, see if NY requires minimum percentage in NY bonds for deductibility.
by rkhusky
Sun Mar 19, 2023 7:08 pm
Forum: Investing - Theory, News & General
Topic: What's going on with Credit Suisse?
Replies: 24
Views: 3641

Re: What's going on with Credit Suisse?

Harmanic wrote: Sun Mar 19, 2023 4:31 pm
rkhusky wrote: Sun Mar 19, 2023 12:14 pm
Harmanic wrote: Sun Mar 19, 2023 12:03 pm
Apparently the Reddit crowd got it right, but Bogleheads refused to believe it.
Has CS collapsed? I thought I just read of a $1B offer to buy CS, which is being rejected because it is 10% or so of market value.
Credit Suisse collapsed. It was taken over by UBS in a shotgun wedding that included a $9 billion bailout from the Swiss and wiping out $17 billion in convertable bonds.
I read that they were purchased for $2B. That is not a collapse. Investors lost 80% of market value.

Why would their assets, like bonds, be wiped out?

Edit: I have since read that it was $3B.
by rkhusky
Sun Mar 19, 2023 7:01 pm
Forum: Personal Investments
Topic: Selling with covered and non covered shares for tax harvesting. Cost method feasible with limited information?
Replies: 8
Views: 543

Re: Selling with covered and non covered shares for tax harvesting. Cost method feasible with limited information?

It’s my understanding that average cost basis is only for mutual funds. The average cost would transfer over to ETF’s if not changed before a conversion at Vanguard.
by rkhusky
Sun Mar 19, 2023 12:59 pm
Forum: Investing - Theory, News & General
Topic: [Bank failure discussion mega-thread]
Replies: 2126
Views: 141125

Re: [Bank failure discussion mega-thread]

PersonalFinanceJam wrote: Sun Mar 19, 2023 7:35 am
Lawrence of Suburbia wrote: Sat Mar 18, 2023 11:13 pm
rkhusky wrote: Sat Mar 18, 2023 8:08 pm I use my bank as a bill payment service. Money comes in and goes out. I keep a thousand there on average to cover bills, sometimes the balance hits $5K for a few days. $250K insurance is way more than I need.
I keep $9-10k in my Chase account; makes me nervous in light of this week's events ...
Genuinely curious why? That’s well below FDIC limits in a too big to fail bank.
Covered by any FDIC bank, not just the few too big to fails.
by rkhusky
Sun Mar 19, 2023 12:50 pm
Forum: Personal Finance (Not Investing)
Topic: 529 per kid vs one heavily funded one
Replies: 15
Views: 1701

Re: 529 per kid vs one heavily funded one

My state subtracts withdrawals from contributions to determine tax deduction on an account by account basis. So by having separate accounts we can contribute for one child and get the full deduction, while withdrawing for another child’s college expenses.
phisher4 wrote: Sun Mar 19, 2023 1:16 am Can someone with financial aid expertise explain the implications on aid to child #1 and #2 if there is only one (large) account in child #1’s name?
FAFSA counts all parent 529 accounts no matter who is the beneficiary.
by rkhusky
Sun Mar 19, 2023 12:14 pm
Forum: Investing - Theory, News & General
Topic: What's going on with Credit Suisse?
Replies: 24
Views: 3641

Re: What's going on with Credit Suisse?

Harmanic wrote: Sun Mar 19, 2023 12:03 pm
Apparently the Reddit crowd got it right, but Bogleheads refused to believe it.
Has CS collapsed? I thought I just read of a $1B offer to buy CS, which is being rejected because it is 10% or so of market value.
by rkhusky
Sat Mar 18, 2023 8:08 pm
Forum: Investing - Theory, News & General
Topic: [Bank failure discussion mega-thread]
Replies: 2126
Views: 141125

Re: [Bank failure discussion mega-thread]

I use my bank as a bill payment service. Money comes in and goes out. I keep a thousand there on average to cover bills, sometimes the balance hits $5K for a few days. $250K insurance is way more than I need.
by rkhusky
Sat Mar 18, 2023 12:40 pm
Forum: Personal Investments
Topic: Yet another wash sale question.
Replies: 7
Views: 476

Re: Yet another wash sale question.

If you sell the 300 shares first, then no wash sale.

If you sell the 500 shares first, then you have a wash sale. You recoup the disallowed loss when you sell the 300 shares.

If you sell all 800 shares with one transaction, then it will depend on the brokerage.
by rkhusky
Sat Mar 18, 2023 9:01 am
Forum: Investing - Theory, News & General
Topic: [Bank failure discussion mega-thread]
Replies: 2126
Views: 141125

Re: [Bank failure discussion mega-thread]

theac wrote: Fri Mar 17, 2023 8:14 pm Yes last year I bought several 3 and 6 month T-Bills for the first time and was surprised how easy it was. Was very happy with them. But toward the end of the year the rates didn't seem all that far off from Schwab MMkt so this year haven't bought any so far.

Now that the rates have dropped, I wish I had gotten some 1 year T-Bills.
Oh well, maybe things will turn around again.

I do still buy my annual I-Bonds.
Trying to time the bond market is just as hard as timing the stock market. Best to just have a plan and stay the course.
by rkhusky
Fri Mar 17, 2023 7:04 pm
Forum: Investing - Theory, News & General
Topic: Direct Indexing Adventure
Replies: 25
Views: 2385

Re: Direct Indexing Adventure

CletusCaddy wrote: Fri Mar 17, 2023 6:59 pm
Scrooge McDuck wrote: Fri Mar 17, 2023 6:36 pm
CletusCaddy wrote: Fri Mar 17, 2023 4:00 pm Correct, the long 1099 objection is a red herring
Why? Doesn't schedule D need to list the individual stocks you sold, along with the cost basis and sales price?
No it doesn’t. All you need to enter are two summary figures:

Short term gain/loss
Long term gain/loss
As long as the transactions have already been reported to the IRS and no corrections are necessary.
by rkhusky
Fri Mar 17, 2023 6:57 pm
Forum: Personal Investments
Topic: How to calculate the effect of expense ratio on retirement savings?
Replies: 57
Views: 4135

Re: How to calculate the effect of expense ratio on retirement savings?

For a quick estimate, I just use (1 + P)^N - 1, where P is the difference in percentages as a decimal and N is the number of years you are compounding over.

Example: 0.5% difference in ER over 30 years results in 16% less money.
by rkhusky
Fri Mar 17, 2023 6:02 pm
Forum: Personal Investments
Topic: Talked to Vanguard but still confused.
Replies: 32
Views: 2942

Re: Talked to Vanguard but still confused.

Yes, I did that, but it would not let me buy anything until I converted my account. Once I did, then it allowed me to BUT, it did not transfer any money, so my balances were all zero. Today I learned I had to actually sell the converted accounts and put them into a different account before I buy bonds. I used to do website design, and their website has a lot to be desired - in terms of functionality. I could this easily in Schwab, but with Vanguard it's like steering a blind elephant. It should only take a day or two for all the money to show up in your new accounts, with the same mutual funds you had before. I think it was overnight for me. You don’t sell accounts, you sell shares of your mutual funds. That gives you cash to buy bonds or ...