Search found 4474 matches

by in_reality
Tue Feb 20, 2018 6:08 am
Forum: Personal Consumer Issues
Topic: Expat Living
Replies: 58
Views: 9572

Re: Expat Living

Learning: If you want an overseas assignment (and despite what I wrote above, I would not have had it any other way), leave your children at home and retire overseas. I'll respectfully disagree on your kids comment. My father was a US diplomat and I spent a good chunk of my childhood overseas. Reentry to the US was difficult and yeah I was an odd ball for a while but as an adult looking back I wouldn't trade those experiences or the outlook they gave me for anything. I envy US diplomats and their children particularly in respect to health care. It's not a typical situation for most expats though. If I could live my life over, the thing I would never do again is raise a child overseas. OK, mine turned out to have a disability which ... long...
by in_reality
Tue Feb 20, 2018 4:11 am
Forum: Investing - Theory, News & General
Topic: J. Montier: US equity market is obscenely overvalued
Replies: 33
Views: 4552

Re: J. Montier: US equity market is obscenely overvalued

I am still holding, because even though valuations are at all-time highs, interest rates are at all time lows. For all I know, the valuations are perfectly reasonable in this market. I don't think that's actually correct. Valuations are highest at moderate rates and inflation. Many investors, commentators, and policymakers seem to believe that rock-bottom levels of inflation and real interest rates provide the best economic condi­tions for stock prices to rise. In fact, however, mod­erate levels of inflation and real interest rates coincide with the highest average valuation multiples. Unusually high or low real yields and inflation rates tend to correspond with much lower average valuation multiples, creating a valuation “mountain” that p...
by in_reality
Tue Feb 20, 2018 4:06 am
Forum: Investing - Theory, News & General
Topic: A Case for Higher Int'l Allocation? Larry Swedroe article on home bias
Replies: 113
Views: 11126

Re: A Case for Higher Int'l Allocation? Larry Swedroe article on home bias

Why would you do that? That's a good thing. If you're in the US with US assets and want to retire to the UK, then a weaker pound means more pounds for your dollars, increasing your pound return and improving your UK retirement lifestyle, other things equal, i.e. not accounting for different inflation rates that could possibly have wiped out any benefits of a weaker pound (i.e. assuming no real exchange rate movement). Hmm ... yea, that makes sense. Okay, how about the reverse: How could people in the UK hedge against such a scenario? (i.e. weaker pound) Why would they do that? If they hold US assets, then a weaker pound means they get more pounds for their dollars. So that's a good thing again. I mean someone in the UK with investments in ...
by in_reality
Tue Feb 20, 2018 3:21 am
Forum: Non-US Investing
Topic: Interactive Brokers fee structure for passive investors
Replies: 43
Views: 7818

Re: Interactive Brokers fee structure for passive investors

IB is definitely geared towards active investors, especially those who want to trade 'exotic' instruments. Not suitable for buy-and-holders at all. This includes a pretty sizeable leap of logic; The same argument has been made about Merrill Edge and their free trades, and it is poor reasoning IMO. Can you use it for buy and hold investing ? Yes, but I would say that there are many better choices for US based investors. it depends what you want to buy and hold. For ETFs i agree, there are better options. But if you have at least 100k and want to buy and hold numerous individual stocks, both domestic and international, IB is probably your best option. And maybe your *only* option for certain international markets. Just doing a quick comparis...
by in_reality
Tue Feb 20, 2018 3:15 am
Forum: Investing - Theory, News & General
Topic: Why investors shouldn’t panic over falling bond prices
Replies: 37
Views: 8323

Re: Why investors shouldn’t panic over falling bond prices

Also the point about real returns is valid. From a nominal perspective late 70s-early 80s bonds didn’t look so bad. From a real return they got slaughtered. http://pages.stern.nyu.edu/~adamodar/New_Home_Page/datafile/histretSP.html https://www.minneapolisfed.org/community/financial-and-economic-education/cpi-calculator-information/consumer-price-index-and-inflation-rates-1913 From 1976 to 1981 the 10 year T bond nominal price including compounded interest was basically flat. Cumulative CPI inflation was 60% during that time frame. The result is they lost 38% in real value during that 5 year period. The general rule for bonds is to hold to duration so you can recover from NAV losses which occur from rising rates. I don't think it's any surp...
by in_reality
Mon Feb 19, 2018 7:29 am
Forum: Non-US Investing
Topic: Interactive Brokers fee structure for passive investors
Replies: 43
Views: 7818

Re: Interactive Brokers fee structure for passive investors

Hi all I am researching opening an IB UK account to trade ETFs, but I find the fee structure a bit unsuitable to the "buy and stay the course" approach. They said: we apply a monthly minimum activity fee of $10 which can be reduced on a dollar-per-dollar basis (to $0) by commissions generated for the month. IB seems more geared towards active investors right? Cheers That's the downside until you have $100,000 (or equivalent). There is an age waiver (20 something I think) and you can combine family accounts I think It's what 2 trades per month (at $4.95 many brokers are charging these days)? So if you have 4 ETFs and contribute every other month (two this month, two next). Yeah, not ideal ... so hurry up and get $100k!!!!! Schwab ...
by in_reality
Mon Feb 19, 2018 6:37 am
Forum: Investing - Theory, News & General
Topic: Buy
Replies: 199
Views: 39486

Re: Buying and Spending Bitcoin

If you made purchases between Jan. 22nd and Feb.11th this year using coinbase, you may have been overcharged. One user reported being charged 17 times for the same transaction. Many others had similar problems. In the fiat currency world this would be 14 times beyond intolerable. At what point will the cryptocurrency enthusiasts stop making excuses for the inexcusable? I'm not sure who is to blame. Coinbase says it's Visa. We have determined that the erroneous credit and debit charges are the result of Visa reversing and recharging transactions. Visa doesn't agree: "Visa has not made any systems changes that would result in the duplicate transactions cardholders are reporting. We are also not aware of any other merchants who are exper...
by in_reality
Mon Feb 19, 2018 4:59 am
Forum: Investing - Theory, News & General
Topic: Buy
Replies: 199
Views: 39486

Re: Buying and Spending Bitcoin

If you made purchases between Jan. 22nd and Feb.11th this year using coinbase, you may have been overcharged. One user reported being charged 17 times for the same transaction. Many others had similar problems.
by in_reality
Mon Feb 19, 2018 4:45 am
Forum: Investing - Theory, News & General
Topic: Larry Swedroe's portfolio: does the fact that SC are expensive cause a problem?
Replies: 37
Views: 4726

Re: Larry Swedroe's portfolio: does the fact that SC are expensive cause a problem?

The Research Affiliates site is interesting, but it does not present an encouraging picture for US small caps. It's true that the linked page shows expected returns for US small caps as being close to those of the US market benchmark. But the page also indicates expected real returns of approximately 0% per annum for US small caps - with an SD of annual returns of approximately 18%. In other words, US small cap may not be any more overvalued than the US market as a whole, but the US market as a whole does not seem priced to produce an attractive return, according to the RA model. Of course, this is just the output of a model, and the ultimate returns will be different (and furthermore, the characteristics of the whole portfolio are more im...
by in_reality
Sun Feb 18, 2018 6:08 pm
Forum: Personal Investments
Topic: I reduced my exposure to US stocks before the correction.
Replies: 39
Views: 5774

Re: I reduced my exposure to US stocks before the correction.

I must say, however, that I have been uneasy about how high the valuations of US stocks have been over the last few months. The Schiller P/E ratio (35 years of profit) has been a red flag to me for some time. I agree. But "red flag" is too strong. It's still expected they will have 3-4% real returns which is better than bonds. So I did something unorthodox which was to reduce my exposure to US stocks **before** the recent correction. I take no particular pride in that. It was just a matter of feeling more confortable. For now, I am glad I did because I don't see much room for the US bull market given current valuations. I did too (Jan 17th). Actually, I rebalanced per my plan to be 50% stock, 50% bonds. I was approaching 60% stoc...
by in_reality
Sun Feb 18, 2018 5:07 pm
Forum: Personal Investments
Topic: Late 20's female looking for some advice towards financial independence
Replies: 31
Views: 5232

Re: Late 20's female looking for some advice towards financial independence

I wouldn’t budget everything towards savings but would include some for social experiences too (dinner out with friends, traveling, health club fees etc).

Would you keep/ do you have a car? Is parking covered?

Have you seen the bus during rush hours? It’d be a long stand if you can’t get a seat.

What are the terms of getting out? At some point you may find a good candidate you want to share expensives with.

Shared kitchen? Are they super clean?

It’d be a possibility I guess.
by in_reality
Sun Feb 18, 2018 7:21 am
Forum: Non-US Investing
Topic: Retiring abroad. Move taxable/checking accounts to Schwab?
Replies: 36
Views: 9441

Re: Retiring abroad. Move taxable/checking accounts to Schwab?

....I do want a U.S. address for mail forwarding (family members are lovable but not too reliable so I'd rather pay for the service). I see Traveling Mailbox has a lot of addresses to choose from in different states. Is there any reason to choose a particular state, such as a state like Florida that has no state income tax, so I don't give the IRS any reason to think I owe state income tax in addition to the federal return I'll file? (Maybe I'm overthinking this)..... You're not overthinking this. Here is one of the better discussions about state domiciles I've seen. It is geared toward RVers but very relevant for expats as well. http://www.technomadia.com/2012/07/chapter-9-nomadic-logistics-domicile-mail-taxes-banking-and-voting/ Come to ...
by in_reality
Sun Feb 18, 2018 6:34 am
Forum: Non-US Investing
Topic: Genius Needed -- Thoughts on My Asset Allocation? [UK]
Replies: 26
Views: 3176

Re: Genius Needed -- Thoughts on My Asset Allocation? [UK]

On reflection, I'm considering that the following may be more appropriate: ~~~~~~~~~~~ 50% Equities -- 25% S&P 500 Hedged to GBP (iShares) -- 75% Vanguard Global All Cap Index 50% Bonds & Cash -- 20% Vanguard UK Short Term Bonds -- 80% Vanguard Global Bonds (GBP hedged) ~~~~~~~~~~~ As the Global All Cap represents 50% US anyway, that takes total US holdings up to 62.5% total, and the remainder as rest-of-world. This still means that only 25% is hedged and therefore protected against currency fluctuations. It's too US centric. US valuations are high after a decade of outperformance. Just as you seemingly don't want to buy foreign equities when they are high due to the pound being at low, why would you want to buy US equities when th...
by in_reality
Sat Feb 17, 2018 9:04 pm
Forum: Non-US Investing
Topic: Retiring abroad. Move taxable/checking accounts to Schwab?
Replies: 36
Views: 9441

Re: Retiring abroad. Move taxable/checking accounts to Schwab?

Thank you for all the ideas and insights! Good to know about Ally and Interactive Brokers, and I'll definitely open a local currency account at a bank in Mexico, and only transfer money into pesos as needed. Diogenes, thank you for the great tips about Traveling Mailbox and Google Voice. I do want a U.S. address for mail forwarding (family members are lovable but not too reliable so I'd rather pay for the service). I see Traveling Mailbox has a lot of addresses to choose from in different states. Is there any reason to choose a particular state, such as a state like Florida that has no state income tax, so I don't give the IRS any reason to think I owe state income tax in addition to the federal return I'll file? (Maybe I'm overthinking th...
by in_reality
Sat Feb 17, 2018 8:48 am
Forum: Non-US Investing
Topic: Retiring abroad. Move taxable/checking accounts to Schwab?
Replies: 36
Views: 9441

Re: Retiring abroad. Move taxable/checking accounts to Schwab?

How did Vanguard know that you were living abroad? Couldn't you just use a US address and then a VPN from abroad? Vanguard had some trouble with my account (missing assets) and was calling my US address which was the telephone number on record. My brother's wife didn't like the calls because of a sleeping baby and so I gave Vanguard a non-US number to call and said I was traveling. Again, the places I'd been prior was happy to file a foreign mailing address and phone number along with the permanent US address. Suggest Google Voice. Phone problem solved! Too late now. I just really didn't know. Actually, I tried but wasn't able to get a US number from Google. I started using Anveo after the fact though. I can get short code SMS messages tha...
by in_reality
Sat Feb 17, 2018 6:46 am
Forum: Non-US Investing
Topic: Retiring abroad. Move taxable/checking accounts to Schwab?
Replies: 36
Views: 9441

Re: Retiring abroad. Move taxable/checking accounts to Schwab?

How did Vanguard know that you were living abroad? Couldn't you just use a US address and then a VPN from abroad? I didn't know I needed to worry that much about it. Wells Fargo Private Bank and a previous advisor before them didn't really care as long as I had a US address. Vanguard had some trouble with my account (missing assets) and was calling my US address which was the telephone number on record. My brother's wife didn't like the calls because of a sleeping baby and so I gave Vanguard a non-US number to call and said I was traveling. Again, the places I'd been prior was happy to file a foreign mailing address and phone number along with the permanent US address. Then when the results came back from the dispute resolution complaint I...
by in_reality
Sat Feb 17, 2018 4:02 am
Forum: Non-US Investing
Topic: Retiring abroad. Move taxable/checking accounts to Schwab?
Replies: 36
Views: 9441

Re: Retiring abroad. Move taxable/checking accounts to Schwab?

Alotoftravel wrote: Sat Feb 17, 2018 3:07 am I too have a normal Schwab account and had no issues living aborad for 3 years. I recommend them highly. I am curious, besides of not providing Schwab a USA address, what are the benefits of having international Schwab accounts.
Having an account in good standing without worrying about the address issue is the only benefit I know.
by in_reality
Sat Feb 17, 2018 3:54 am
Forum: Investing - Theory, News & General
Topic: Buy
Replies: 199
Views: 39486

Re: Buying and Spending Bitcoin

NYT touched on this concept recently: Why the I.R.S. Fears Bitcoin . Obviously I am not advocating tax evasion, but I am advocating discussing its problems openly. Snippet from the NYT op-ed: Here is a simple tax dodge that would be hard for the I.R.S. to prove: Suppose A, B and C are electronic addresses you own. You let the I.R.S. know you own A, but not B and C. You buy one Bitcoin at $15,000 and park it at A, expecting the price to go up. Just a few hours later, when a Bitcoin is worth $15,500, you send that Bitcoin to B and then to C. A few months later, when your Bitcoin is now worth $25,000, you send it from C to A and tell the I.R.S., “I sold a Bitcoin to an anonymous counterparty at B back at $15,500 and just now bought a Bitcoin ...
by in_reality
Sat Feb 17, 2018 1:58 am
Forum: Investing - Theory, News & General
Topic: Buy
Replies: 199
Views: 39486

Re: Buying and Spending Bitcoin

NYT touched on this concept recently: Why the I.R.S. Fears Bitcoin . Obviously I am not advocating tax evasion, but I am advocating discussing its problems openly. Snippet from the NYT op-ed: Here is a simple tax dodge that would be hard for the I.R.S. to prove: Suppose A, B and C are electronic addresses you own. You let the I.R.S. know you own A, but not B and C. You buy one Bitcoin at $15,000 and park it at A, expecting the price to go up. Just a few hours later, when a Bitcoin is worth $15,500, you send that Bitcoin to B and then to C. A few months later, when your Bitcoin is now worth $25,000, you send it from C to A and tell the I.R.S., “I sold a Bitcoin to an anonymous counterparty at B back at $15,500 and just now bought a Bitcoin ...
by in_reality
Sat Feb 17, 2018 1:35 am
Forum: Investing - Theory, News & General
Topic: philosophicaleconomics predicts 4% real equity returns
Replies: 152
Views: 14651

Re: philosophicaleconomics predicts 4% real equity returns

Wow! The most interesting thing about this article is the difference between a company paying dividends or using the money for reinvestment in the company. It is commonly asserted here that there is no difference between paying out a dividend and retaining the earnings (to grow the company). For example: investors should be indifferent to $1 in the form of a dividend (causing the stock price to drop by $1) and $1 received by selling shares. This must be true, unless you believe that $1 isn’t worth $1. (a) Yet that view would seem to contradict the "low investment premium" which this article seems to support and explains as an accounting error. This crudely calculated result is consistent with the academic finding that corporations...
by in_reality
Sat Feb 17, 2018 12:52 am
Forum: Non-US Investing
Topic: Living abroad. Retirement savings options?
Replies: 45
Views: 7836

Re: Living abroad. Retirement savings options?

That my friend would be a lot of money moving around. haha I would just want enough to max out the Roth IRA, but I appreciate your opinion. But I am interested in your foreign tax credit idea, I was thinking on this and thought my new found art talent would be easier, but looking into this topic more it seems that perhaps I should take the foreign tax credit in lieu of the FEIE. Do you mind teasing out a scenario for me? >Income earned in Vietnam is $70k. >They tax me via an income tax at 27%. >I then pay Vietnam $18,900. >If I take the foreign tax credit do I then have what I paid Vietnam deducted from what I would owe the US? (25% on the tax bracket I believe.) >Would this then mean I do not owe the US government any money? >>If that is ...
by in_reality
Fri Feb 16, 2018 11:00 pm
Forum: Non-US Investing
Topic: Retiring abroad. Move taxable/checking accounts to Schwab?
Replies: 36
Views: 9441

Re: Retiring abroad. Move taxable/checking accounts to Schwab?

So I’m thinking of making two major financial moves, and would like to know what Bogleheads think: 1. Roll over my 401(k) to an IRA at Vanguard, where my Roth is (I’m a Vanguard fan). My understanding is that Vanguard will let me keep my accounts as an expat as long as I don’t buy anything, and only sell (except for dividend re-investment). That’s fine. As long as it doesn't restrict any rebalance you might need to do. I'm keeping an annuity frozen at Vanguard in that manner. 2. Move taxable account/checking/ATM debit card to Schwab. I spent an hour with a VP at a Schwab office this week, and he conferenced in a knowledgeable person from Schwab International. The key points: She says I can open U.S. checking and brokerage accounts now, and...
by in_reality
Fri Feb 16, 2018 9:38 pm
Forum: Non-US Investing
Topic: Getting Started [US ex-pat]
Replies: 4
Views: 894

Re: Getting Started [US ex-pat]

Taxes: No US income taxes due to the expat tax exemption. This will be my first year of paying capital gains taxes. I am unsure what that entails, I will discuss it with my accountant soon. I only just started in early autumn 2017 and only made a modest amount or realized gains in dividends. Understand that your US income (dividends, capital gains, interest) will be taxed if you go into the 22% bracket ($38,700) and that your foreign income will count towards that amount. So with your standard deduction of $12,000 you might be boarder-line once your income goes up as expected. Generally you will want to tax gain harvest if you are below the cut off (sell your gains and pay 0%) until the limit, or tax loss harvest if you are above it (sell ...
by in_reality
Fri Feb 16, 2018 3:50 pm
Forum: Non-US Investing
Topic: Help needed to choose Vanguard EU based ETFS
Replies: 20
Views: 5653

Re: Help needed to choose Vanguard EU based ETFS

I wonder if branches of US brokers such as Schwab UK or Interactive Brokers will have to stop too. Schwab UK in particular mainly offered access to US ETFs. I wonder if they effectively will be put out of business or if because it’s US domiciled that the restriction doesn’t affect them. Granted you would be under the US estate tax by using them, so would need a treaty in place. Also, I don’t think the ETFs are U.K. reporting. Anyway, this is what it says about the structure: In establishing a U.S. brokerage account (either individual or corporate), Schwab U.K. will introduce you to Schwab a U.S. broker-dealer, and the account will be operated by Schwab from the U.S. Schwab is regulated under U.S. securities laws and is not authorised in the...
by in_reality
Thu Feb 15, 2018 8:26 pm
Forum: Personal Investments
Topic: Vanguard Personal Advisory Services vs. Schwab Intelligent Advisory
Replies: 49
Views: 10442

Re: Vanguard Personal Advisory Services vs. Schwab Intelligent Advisory

Cost is not my primary concern. It is more personal and emotional. My wife who is intelligent and college grad just does not have interest in managing our assets in the event of my death. Don't take this comment as politically incorrect or sexist. It is just a fact in my life. Anyway, I think it may be helpful and comforting for her to be able to walk into a physical office and actually talk to someone in person. My wife earns more than I and is certainly more intelligent but I worry she would sell out of everything were I not around. I think I'd go with the SIA when I decide to really implement a plan. Being an expat now though, I don't think I qualify for the service. In any case, I hold by choice many of the funds they use. If SIA is si...
by in_reality
Thu Feb 15, 2018 7:55 pm
Forum: Investing - Theory, News & General
Topic: Buy
Replies: 199
Views: 39486

Re: Buying and Spending Bitcoin

If one purchases something with by using bitcoins that have appreciated in value since the bitcoins were obtained, is one supposed pay tax similar to capital gains?
by in_reality
Thu Feb 15, 2018 3:08 am
Forum: Personal Finance (Not Investing)
Topic: PSA: Schwab International ETFs: 1099-DIV revisions coming [Updated]
Replies: 19
Views: 3521

Re: PSA: Schwab International ETFs: 1099-DIV revisions coming

This notice is not being provided for tax reporting purposes, and will not affect your 1099 or any other tax documents you may have received . My interpretation is that they are saying the notice doesn't affect the 1099 because Schwab leaves it up to the broker to issue a revised 1099 when necessary. I also recall getting Section 19(a) notices last year but I don't recall any numbers on them in terms of $/share of reclassified amounts. I don't still have those notices, do you? Are they different from this year's? Well, interpret it how you feel is best. I am interpreting the statement that it "will not affect your 1099 or any other tax documents you may have received" as meaning there will be no revised 1099. Plus, I received the...
by in_reality
Wed Feb 14, 2018 2:10 am
Forum: Non-US Investing
Topic: Living abroad. Retirement savings options?
Replies: 45
Views: 7836

Re: Living abroad. Retirement savings options?

Sorry for resurrecting the thread but I have a question. I must have taxable income that is not foreign earned to contribute to a Roth IRA. What if I start a small independent business in the US selling art, or honey, or services etc., and within a tax year I could prove that that company took in $5,500.00, all the while I have also been working my full-time job overseas earning money that also qualifies as "Foreign Earned Income." Could I then still qualify to file my taxes with the FEIE, AND have a Roth IRA? You could do this on a Schedule C. However, you'd owe FICA taxes (employer + employee) on the $5,500. Correct. You'd owe self-employment tax EVEN IF you excluded the income via FEIE. That may or may not be correct depending...
by in_reality
Tue Feb 13, 2018 10:23 pm
Forum: Non-US Investing
Topic: Living abroad. Retirement savings options?
Replies: 45
Views: 7836

Re: Living abroad. Retirement savings options?

IRS penalties for over contribution are harsh. How did you get taxable income? If it's excluded under the Foreign Earned Income Exclusion (form 2555), it can't go into an IRA. American Funds will not have your tax returns and I don't believe they offer tax advice. Sorry for resurrecting the thread but I have a question. I must have taxable income that is not foreign earned to contribute to a Roth IRA. What if I start a small independent business in the US selling art, or honey, or services etc., and within a tax year I could prove that that company took in $5,500.00, all the while I have also been working my full-time job overseas earning money that also qualifies as "Foreign Earned Income." Could I then still qualify to file my ...
by in_reality
Tue Feb 13, 2018 7:37 pm
Forum: Non-US Investing
Topic: Living abroad. Retirement savings options?
Replies: 45
Views: 7836

Re: Living abroad. Retirement savings options?

IRS penalties for over contribution are harsh. How did you get taxable income? If it's excluded under the Foreign Earned Income Exclusion (form 2555), it can't go into an IRA. American Funds will not have your tax returns and I don't believe they offer tax advice. Sorry for resurrecting the thread but I have a question. I must have taxable income that is not foreign earned to contribute to a Roth IRA. What if I start a small independent business in the US selling art, or honey, or services etc., and within a tax year I could prove that that company took in $5,500.00, all the while I have also been working my full-time job overseas earning money that also qualifies as "Foreign Earned Income." Could I then still qualify to file my ...
by in_reality
Tue Feb 13, 2018 8:43 am
Forum: Investing - Theory, News & General
Topic: Are ETF's riskier than mutual funds in volatile markets?
Replies: 7
Views: 1317

Re: Are ETF's riskier than mutual funds in volatile markets?

If the market is tanking so much and you have fear it will never recover, what is stopping you from selling your mutual fund?

You might be able to exit a few hours earlier with the ETF, but how much difference would that really make?

I only have ETFs but am not tempted to trade on speculation.
by in_reality
Tue Feb 13, 2018 6:46 am
Forum: Personal Finance (Not Investing)
Topic: PSA: Schwab International ETFs: 1099-DIV revisions coming [Updated]
Replies: 19
Views: 3521

Re: PSA: Schwab International ETFs: 1099-DIV revisions coming

Return of capital is reported on Line 3 of 1099-DIV, "Nondividend distributions". I really don't see how there won't be a revised 1099. As you can see from your Schwab letter, the last column is labeled "Amount of net investment income distribution reclassified as Return of Capital or Other Capital Source". That indicates to me that something that was formerly classified as income will now be called ROC. To me that means taxable->nontaxable. My Fidelity 1099 was issued at the end of January. For 2016, the year I received 5 such notifications, my Line 3 of 1099-DIV Nondividend Distributions is $0.00. Per Schwab: https://www.schwabfunds.com/public/file/P-8678350/Section-19(a)-Notice-FAQs_.pdf This notice is not for tax re...
by in_reality
Tue Feb 13, 2018 6:15 am
Forum: Personal Finance (Not Investing)
Topic: PSA: Schwab International ETFs: 1099-DIV revisions coming [Updated]
Replies: 19
Views: 3521

Re: PSA: Schwab International ETFs: 1099-DIV revisions coming

Was their any CG distribution for SCHF? No CG distributions for either fund. As well as none in 2016. After comparing my current 1099 with this new information it's clear that at least some of the ROC for FNDF will have to come from qualified dividends. The amount of ROC is larger than the non-qualified dividends reported on my original 1099. I'm not so sure. And I'm not so sure you'll see a corrected 1099-DIV. My SCHF is held at Schwab and I was issued the same notification on 1.2017 for a 12.2016 distribution. I never received a revised 1099-DIV. OK, so you are at Fidelity and maybe they issued a 1099-DIV earlier than Schwab, so perhaps Fidelity didn't have correct information at that time. Still, on my 2016 1099-DIV though (received in ...
by in_reality
Tue Feb 13, 2018 3:30 am
Forum: Personal Finance (Not Investing)
Topic: Replacement for Google Finance price quote function
Replies: 153
Views: 49310

Re: Replacing Google Finance price quote function

munemaker The original post actually has the solution. Use the CONCAT function to build the http:... string in your importxml function. Somehow I overlooked this until you pointed it out. I was able get get it to work. Thanks NEW QUESTION: I have approximately 60 IMPORTHTML statements in my spreadsheet. The imports load (i.e. update values) very, very slowly. What is the most important factor contributing to the slow update speed? Is it the internet speed or the processor speed. I am traveling and only have my lower powered Chromebook with me, which only has a Celeron processor. I wonder if this is why the slow-load? The website I am pulling the data from cannot be very busy as it is after midnight EST I don’t think its internet or process...
by in_reality
Tue Feb 13, 2018 2:31 am
Forum: Personal Finance (Not Investing)
Topic: Expat tax question: How to be eligible for MFJ with non-resident spouse?
Replies: 14
Views: 1746

Re: Expat tax question: How to be eligible for MFJ with non-resident spouse?

As I understand, we could file as MFJ again if she moved to the US. Are there any other ways we could file as MFJ? For example, could she spend enough time per year in the US to qualify as a resident for tax purposes? What if we purchased a house together in the US? What if my family's US business paid her for part-time work? What if we bought a commercial property? Looking for creative ideas to make my wife eligible to file as a resident in order to file as MFJ. My guess is that merely buying a house in the US would not be enough to qualify as a resident, nor would any business arrangement work. Actual physical presence would be needed, I think. But I'm not a tax lawyer. I wonder if you could go back and file an amended return for last ye...
by in_reality
Tue Feb 13, 2018 12:11 am
Forum: Personal Investments
Topic: realized startup equity / schwab private client
Replies: 16
Views: 2797

Re: realized startup equity / schwab private client

I'm 32y/o and recently realized my equity in a startup. My portfolio is now ~$3m and have access to the highest tier of schwab private client at discounted rates. I have that at Schwab but wouldn't consider private client unless the fee was low (0.3% or under). I used to be private bank at Wells Fargo but found bogleheads better. 1) Total stock market is underweight small cap It's not difficult to find out what market weight is, what your portfolio has and adjust. Have you ever used Morningstar's instant x-ray 2) Total bond market does not have the management to deal with the risk of a rising interest rate environment Sure it's true. But what are any of the actively managed offerings really going to do about it. Bond yields are low and if ...
by in_reality
Sun Feb 11, 2018 8:14 pm
Forum: Investing - Theory, News & General
Topic: Why should we care about inflation?
Replies: 58
Views: 7844

Re: Why should we care about inflation?

4. If a tight employment market causes employers to pay more, then wages go up, offsetting any rise in prices. Somehow this has not played out at all. With stocks at an all time high, my employer actually cut benefits by reducing the 401k match. Raises are practically non-existent and barely cover increase in health insurance premiums (and definitely not the increase in deductibles), let alone increase in rents or car prices or college tuition. And this is a tight labor market. :) Raises are not happening as much in the past. It locks companies into higher cost going forward. In 1991, for example, spending on temporary rewards and bonuses for salaried employees, known as variable pay, accounted for an average of 3.1 percent of total compen...
by in_reality
Sun Feb 11, 2018 6:57 pm
Forum: Investing - Theory, News & General
Topic: QSPIX - thoughts on interesting fund
Replies: 1753
Views: 291442

Re: QSPIX - thoughts on interesting fund

In my view, anyone who owns "60% TSM (Total U.S. Stock Market" and "40% TBM (Total U.S. Bond Market)" already has nearly all U.S. "factors" in their portfolio. I agree that Taylor has a correct view on this. Taylor, As you know, TSM certainly has exposure to all the stocks, but no net exposure to the factors. Net exposure isn't determining your returns though. If I hold a 50% stock 50% treasury portfolio, I have no net exposure to equities right! Equities are still driving my returns though aren't they! Now it's true that having a net exposure to an asset class with higher expected returns might be beneficial, but even at 50% I will get the benefit of equity returns for the portion I have invested. The same go...
by in_reality
Sun Feb 11, 2018 5:57 am
Forum: Investing - Theory, News & General
Topic: What ever happened to the Larry portfolio?
Replies: 120
Views: 23272

Re: What ever happened to the Larry portfolio?

Lauretta wrote: Sun Feb 11, 2018 5:00 am I like the idea behind this portfolio, but there's something puzzling me. At the moment small caps seem to be much more expensive than large caps worldwide, so if you are a new investor and want to implement the LS portfolio by buying SCV, you will invest in SCV and leave out LC (which as a class are cheaper), with the aim of profiting from the value effect, which seems paradoxical:
http://mebfaber.com/2015/07/23/small-cap-cape-ratios/
I don't think you can evaluate the expense of scv by looking at small caps.

In your other question on the topic, MSCI small cap value had lower P/E Fwd and P/BV and a higher dividend yield than the MSCI USA index. Those are the criteria that the index uses to select.
by in_reality
Sun Feb 11, 2018 1:40 am
Forum: Personal Investments
Topic: Arguments against rising equity glide path?
Replies: 40
Views: 7418

Re: Arguments against rising equity glide path?

AlohaJoe wrote: Sat Feb 10, 2018 11:13 pm
Initial Conditions and Optimal Retirement Glide Paths by David Blanchett
Great suggestion. That's a good read.

Still working on the OP's original article too.

Thanks all.
by in_reality
Sun Feb 11, 2018 1:02 am
Forum: Investing - Theory, News & General
Topic: split international into developed and emerging for lower expenses?
Replies: 3
Views: 1071

Re: split international into developed and emerging for lower expenses?

I don't think it's worth it to save on expenses. Reducing expenses is about not buying funds that have massive expense ratios; not shaving off one or two basis points. +1 (I agree) If you want to tilt to emerging (to reduce portfolio correlations), that's about the only reason I'd buy separate funds. It might also be useful in taxable from a tax loss harvesting perspective. Vanguard's emerging market fund includes China A shares while their total international fund doesn't. However, this seems to only shift the portfolio slightly (China A is only partially included) and what little impact it does have could go either way. China A might in fact come to have a bigger impact than the difference in ER. Not sure where the FTSE index stands now ...
by in_reality
Sat Feb 10, 2018 8:56 pm
Forum: Investing - Theory, News & General
Topic: Day trading for a living/career?
Replies: 95
Views: 12089

Re: Day trading for a living/career?

Yes, I could stay in the building industry if I wanted to. Frankly, I'm bored with it. There are no challenges left in my view. I have never been a just drive around in your pick-up truck with a clip board and tape measure and just tell people what to do kind of contractor. I have always been very hands on during my career and gained the respect of my sub-contractors and clients because of that. It's just my body is finally wearing out. I want to stay fit enough that I can at least chase the DW around in our golden years :D The only contracting I care to do anymore are my own projects. Going to build us a new home in a few years, possibly some rental properties. Tired of working on everyone else's projects. Wow. So you have some serious sk...
by in_reality
Sat Feb 10, 2018 7:04 pm
Forum: Investing - Theory, News & General
Topic: QSPIX - thoughts on interesting fund
Replies: 1753
Views: 291442

Re: QSPIX - thoughts on interesting fund

Random Walker wrote: Sat Feb 10, 2018 6:30 pm Given current equity valuations and bond interest rates, why not allocate a small portion of the portfolio to these diversifiers?

Dave
I don't have access and some concerns but isn't that true for all investments.

In any case, why don't you keep track of your returns here (or in a new thread)? Robert T shows his (for a small value tilt) sometimes and it's useful I think to look at actual returns.

Also, what's your plan for drawdowns? Will interval funds affect that or are they scheduled reliably enough?

Even a six month or yearly update would be interesting.

I admire your courage here.
by in_reality
Fri Feb 09, 2018 11:22 pm
Forum: Investing - Theory, News & General
Topic: Larry Swedroe: 4 Horsemen Of Your Portfolio
Replies: 111
Views: 15023

Re: Larry Swedroe: 4 Horsemen Of Your Portfolio

My take on the article, is that Larry is pretty much right and that we need to be very nice to our family members. You might need them someday. The thing is, I don't think we have a retirement crisis, I believe Western Countries are maintaining too many households. The idea that we all need to retire as millionaires with oodles of long term care insurance is unsustainable for our society. Even if we all could save a mill or two and buy gobs of long term care insurance, all that would do is drive up the price of retirement and we would all be in the same relative position. I think what will happen, out of necessity, is the comeback of the extended family. Wow... +1 Well, research on the first (known) man in the world to live to 110 and the ...
by in_reality
Fri Feb 09, 2018 9:27 pm
Forum: Personal Investments
Topic: From EJ to Vanguard to Schwab
Replies: 21
Views: 3477

Re: From EJ to Vanguard to Schwab

pkcrafter wrote: Fri Feb 09, 2018 9:05 pm
I'm not sure Vanguard, or any other firm, can actually sell your funds at another brokerage. So, if you called Vanguard and asked for a transfer, they would transfer what's in the account. Normally, you would tell EJ to sell the funds if you didn't want to transfer in kind.
Schwab gives an option to liquidate mutual funds in their transfer form. In fact, when I transferred to Vanguard I had to check one "in-kind" or "liquidate". I just looked at my completed form which I had saved.

I'm pretty sure Vanguard did too, but I didn't save that since I did it online. Pershing and Wells Fargo allowed liquidation of mutual funds -- actually required a choice like Schwab too. I've been around the block.
by in_reality
Fri Feb 09, 2018 9:10 pm
Forum: Personal Investments
Topic: From EJ to Vanguard to Schwab
Replies: 21
Views: 3477

Re: From EJ to Vanguard to Schwab

weltschmerz wrote: Fri Feb 09, 2018 9:02 pm Wow, so much hating on Vanguard this week. I think the website domain "www.schwabheads.org" is still available, maybe somebody should buy this up and start a new forum.
It's not this week.

Here's the thread I had in 2016 viewtopic.php?f=11&t=183629&hilit=trouble+Vanguard

What are you saying, that we are not welcome to discuss the issues we have had at Vanguard?

My problems were serious. Seeing my accounts in someone else's estate isn't normal, and the mods can ban me for saying so. Whatever.
by in_reality
Fri Feb 09, 2018 8:59 pm
Forum: Investing - Theory, News & General
Topic: Question re: Bond Fund Principal
Replies: 5
Views: 787

Re: Question re: Bond Fund Principal

Dear BH, As an investor in the Vanguard Total Bond Fund , I have read several articles that state that Bond Funds may not guarantee a return on principal as individual bonds might . Is this true ? Is there more risk in a bond fund than in individual bonds ? I’m not talking about normal ups and downs of yields or NAV, but could a bond fund technically go broke and lose all principal . I apologize if this is a foolish question or has been answered many times . Sure it could. And if it happens, all the individual bonds people hold outside the fund will go to zero too. Say treasuries go worthless, neither a fund nor individual bond will save you. The reason they say Bond Funds are more risky, is that individual bonds have a set maturity date. ...
by in_reality
Fri Feb 09, 2018 8:48 pm
Forum: Personal Investments
Topic: From EJ to Vanguard to Schwab
Replies: 21
Views: 3477

Re: From EJ to Vanguard to Schwab

Thank you for the useful information. I didn't add that when I saw my funds transfer in kind I called back very upset and the young girl told me I should have filled out a form or called EJ to sell my funds first. Those two options we're never told to me when I called asking how to sell my funds and to transfer as cash. I was also never given the option to fill out any form online when opening a new account. And do understand, I am not trying to blame you -- Vanguard is clearly in the wrong -- but they will use whatever wiggle room they have to not compensate you for any loss. I am sure of it. I should have done more on my part, but I thought reading past advice on this subject here on the forum, reading Vanguard's website and fees, and ca...
by in_reality
Fri Feb 09, 2018 7:33 pm
Forum: Personal Investments
Topic: From EJ to Vanguard to Schwab
Replies: 21
Views: 3477

Re: From EJ to Vanguard to Schwab

I decided last week to move my Roth IRA to Vanguard after finding this forum. However when I started the new account I was promoted with a message to call Vangaurd if I wanted to sell my prior funds before transferring to Vanguard. All the advice on here was don't call EJ just call Vanguard and they would handle all liquidating of funds so I could move over just the cash. So I called Vanguard when prompted with the message to do just that. A young person answered as always, and I told him I was starting a new account online and I stopped because it says to call if I want to sell my prior funds for cash transfer. He acted like I didn't need to call for that and to just finish the new account and they would take care of it. I am very sorry y...