Search found 613 matches

by FactualFran
Mon May 21, 2018 2:49 pm
Forum: Investing - Theory, News & General
Topic: Is Vanguard anti-competitive?
Replies: 29
Views: 2925

Re: Is Vanguard anti-competitive?

New investor here. When you say that Vanguard is returning returns to the shareholders (i.e. its funds i.e. its fund holders) in the form of lower costs, does it not mean that it is avoiding paying corporate taxes on what would otherwise be treated as earnings? Concerning mutual funds avoiding payi...
by FactualFran
Mon May 21, 2018 2:01 pm
Forum: Investing - Theory, News & General
Topic: Is Vanguard anti-competitive?
Replies: 29
Views: 2925

Re: Is Vanguard anti-competitive?

All mutual funds are corporations. For example, Vanguard Total Stock Market Index Fund is a corporation. It has a board of directors, files tax returns, and issues common stock. i.e., each share of the fund is 1 share of the common stock. Normally they don't pay taxes and all profits of that fund g...
by FactualFran
Sat May 19, 2018 12:12 pm
Forum: Investing - Theory, News & General
Topic: Is Vanguard anti-competitive?
Replies: 29
Views: 2925

Re: Is Vanguard anti-competitive?

All mutual funds are corporations. For example, Vanguard Total Stock Market Index Fund is a corporation. It has a board of directors, files tax returns, and issues common stock. i.e., each share of the fund is 1 share of the common stock. Normally they don't pay taxes and all profits of that fund g...
by FactualFran
Fri May 18, 2018 3:35 pm
Forum: Investing - Theory, News & General
Topic: "Keep it Simple With Index Funds"
Replies: 8
Views: 1812

Re: "Keep it Simple With Index Funds"

The article mentioned Occam's razor. Here how John Bogle put it in The Twelve Pillars of Wisdom in the Epilogue of “Bogle of Mutual Funds: New Perspectives for the Intelligent Investor”. When all else fails, fall back on simplicity . If you have a major investment decision to make, there are an infi...
by FactualFran
Thu May 17, 2018 2:53 pm
Forum: Investing - Help with Personal Investments
Topic: Vanguard Junk Bond fund
Replies: 65
Views: 3611

Re: Vanguard Junk Bond fund

Why would an investor care if the value drops if the investment purpose is just to receive income? With no intention to ever sell shares. An investor who took the income distributions of VWEHX in cash over its history would have cared about the long-term trend. The annual amount of cash would have ...
by FactualFran
Tue May 15, 2018 5:02 pm
Forum: Investing - Help with Personal Investments
Topic: Vanguard Junk Bond fund
Replies: 65
Views: 3611

Re: Vanguard Junk Bond fund

Why would an investor care if the value drops if the investment purpose is just to receive income? With no intention to ever sell shares. An investor who took the income distributions of VWEHX in cash over its history would have cared about the long-term trend. The annual amount of cash would have ...
by FactualFran
Fri May 11, 2018 2:12 pm
Forum: Personal Finance (Not Investing)
Topic: Estimated tax question
Replies: 21
Views: 1614

Re: Estimated tax question

It's very much a semantic issue: what is the definition of "safe harbor" in this situation? Those who define it as "not having to pay a penalty" will reach conclusions different from those who define it as "any one of the three conditions leading to the 'You are NOT required to pay estimated tax' b...
by FactualFran
Fri May 11, 2018 2:08 pm
Forum: Investing - Help with Personal Investments
Topic: SpecID for noncovered shares at Vanguard
Replies: 12
Views: 976

Re: SpecID for noncovered shares at Vanguard

Well, the issue is that I called Vanguard and was told no need to send them anything. That's why the original post. When Vanguard and the IRS disagree, I would do what the IRS states. The IRS states in the Specific Share Identification section of Publication 550: If you adequately identify the shar...
by FactualFran
Thu May 10, 2018 3:45 pm
Forum: Investing - Help with Personal Investments
Topic: SpecID for noncovered shares at Vanguard
Replies: 12
Views: 976

Re: SpecID for noncovered shares at Vanguard

So do I need to send Vanguard instructions or not? Where's the information on the wiki page from? Is that an official answer? Is it column f on form 8949 that I specify cost basis method? H&R Block never asked for that. Should I send my spreadsheet together with my tax return? When selling non-cove...
by FactualFran
Thu May 10, 2018 2:53 pm
Forum: Personal Finance (Not Investing)
Topic: Estimated tax question
Replies: 21
Views: 1614

Re: Estimated tax question

Something I just learned when filling out form 2210 just now: If you want to use the short method for estimating the underpayment penalty, do not make ANY estimated tax payments. If you do, it will force you to the regular method. I like the short method, so no estimated payments for me. The short ...
by FactualFran
Wed May 09, 2018 4:07 pm
Forum: Investing - Help with Personal Investments
Topic: SpecID for noncovered shares at Vanguard
Replies: 12
Views: 976

Re: SpecID for noncovered shares at Vanguard

Where on the return does it show that you elected average basis. I looked on Form 8949 and could not locate that. From page 46 of the 2017 IRS Publication 550 For noncovered securities, you elect to use the average basis method on your income tax return for the first tax year that the election appl...
by FactualFran
Wed May 09, 2018 3:03 pm
Forum: Investing - Help with Personal Investments
Topic: SpecID for noncovered shares at Vanguard
Replies: 12
Views: 976

Re: SpecID for noncovered shares at Vanguard

With non-covered shares, the IRS knows whether you used Average Basis because you indicate on you tax returns that you are using Average Basis with sales of the fund. If you do not indicate that you are using Average Basis, then the IRS assumes that you are using FIFO. You informing the broker that ...
by FactualFran
Wed May 09, 2018 2:43 pm
Forum: Personal Finance (Not Investing)
Topic: Cost Basis: Average Cost at Vanguard. Can I change to Specific ID
Replies: 2
Views: 432

Re: Cost Basis: Average Cost at Vanguard. Can I change to Specific ID

For example: If I had the following: Purchases prior to 5/9/2018: Market Value 50,000. Avg Cost 30,000 (60% of market value) Purchase after 5/9/2018 Market Value 3,000. Cost 3,000. On 5/10/2018, I decide to sell 3,000 of VTSAX. Can i use 3,000 as my cost basis if I identify it as purchased on 5/9/2...
by FactualFran
Tue May 08, 2018 2:27 pm
Forum: Investing - Help with Personal Investments
Topic: Average annual dividen return for Vanguard Total Stock Market
Replies: 2
Views: 597

Re: Average annual dividen return for Vanguard Total Stock Market

The mean of the annual distribution yields of the Vanguard Total Stock Market Fund Admiral Shares, income distributions during a year taken in cash divided by the NAV at the end of the previous year, was 1.89% from 2001, the first full calendar year of the fund, to 2017. The distributions yields for...
by FactualFran
Sat May 05, 2018 11:46 am
Forum: Investing - Help with Personal Investments
Topic: Questions about funds held in brokerage accounts
Replies: 11
Views: 844

Re: Questions about funds held in brokerage accounts

As to whether a fund has a separate record that you are an owner, or does the brokerage own a block of shares and it keeps the record of how many shares each person owns, according to a list as of July 7, 2017 of principal holders of the PIMCO Total Return Fund class D shares 43.83% of the shares we...
by FactualFran
Fri May 04, 2018 2:58 pm
Forum: Investing - Help with Personal Investments
Topic: Tax Implications if Stop Reinvest Dividends
Replies: 13
Views: 1328

Re: Tax Implications if Stop Reinvest Dividends

I don't understand. I have not put in any money for the past 10 years. I had put in $500 per month for 20 years and reinvested dividends. I am no longer reinvesting dividends. I assume I would benefit to use FIFO for allocating the shares to sell. If I sell some of the shares and use FIFO, I would ...
by FactualFran
Thu May 03, 2018 3:56 pm
Forum: Investing - Theory, News & General
Topic: Vanguard High Yield Corporate - Another New Low in Dividend
Replies: 19
Views: 4166

Re: Vanguard High Yield Corporate - Another New Low in Dividend

SEC rule 10b-18 was instituted in 1982. Is that just a coincidence? https://www.investopedia.com/terms/r/rule10b18.asp Looks like just a coincidence. SEC rule 10-b-18 is about a corporation or an affiliate repurchasing shares of common stock. The Vanguard High Yield Corporate fund had a higher inco...
by FactualFran
Wed May 02, 2018 3:17 pm
Forum: Investing - Help with Personal Investments
Topic: Why are two almost identical value ETFs (MGV and VTV) priced so differently?
Replies: 19
Views: 1252

Re: Why are two almost identical value ETFs (MGV and VTV) priced so differently?

Just wondering, were both launched on the same date? Good luck y gracias por leer / cfs MGV was launched on 12/17/2007. The closing NAV on that date was 49.38. VTV was launched on 01/26/2004. The closing NAV on that date was 50.34. It looks as if both started with a target NAV of $50. When each fun...
by FactualFran
Tue May 01, 2018 5:14 pm
Forum: Investing - Theory, News & General
Topic: I-bond fixed rate = 0.3%
Replies: 62
Views: 7069

Re: I-bond fixed rate = 0.3%

When I log in as of today and see my i Bonds from 2012 and 2013 it shows a 2.48% interest rate. That would suggest a .26% fixed rate. Seems odd to me - shouldn't it be .2%? Those I Bonds with a current interest rate of 2.48% have a 0% fixed rate. That current interest rate is calculated using the s...
by FactualFran
Tue May 01, 2018 3:37 pm
Forum: Personal Consumer Issues
Topic: Device or app to find road gradient while biking?
Replies: 18
Views: 1174

Re: Horizontal Level Acceleration & Heisenberg Principle

I don't know how the Heisenberg Principle would be involved, but Einstein's equivalence principle indicates that an instrument that detects gravity would also detect acceleration.
by FactualFran
Thu Apr 26, 2018 2:51 pm
Forum: Investing - Theory, News & General
Topic: CAGR & Sharpe Ratio
Replies: 22
Views: 919

Re: CAGR & Sharpe Ratio

From Risk and Risk Control in an Era of Confidence (or is it Greed?) remarks by John C. Bogle: After all, over-simplifying ever so slightly, the Sharpe ratio for calculating risk-adjusted return equates an extra percentage point of return with an extra percentage point of risk. But this much must be...
by FactualFran
Thu Apr 26, 2018 2:00 pm
Forum: Investing - Help with Personal Investments
Topic: Recreating VFINX cost basis?
Replies: 8
Views: 659

Re: Recreating VFINX cost basis?

I suggest that you sum the numbers from Form 1099-Div for the years the fund was held. The value I calculated from the distribution data is not necessarily exact. I don't have certain data that can affect the calculated result, such as the breakdown of capital gain distributions into short-term and ...
by FactualFran
Wed Apr 25, 2018 2:40 pm
Forum: Investing - Theory, News & General
Topic: Balanced Funds Capturing Large Percentage of Stock Market Return
Replies: 15
Views: 1674

Re: Balanced Funds Capturing Large Percentage of Stock Market Return

I should note that the percentages captured are quite a bit less for periods since the stock market bottom in March 2009. The nine year return for the Total Stock Market Fund appears to be about 15.7%. We have enjoyed relatively high returns since that market low. You may want to investigate the pe...
by FactualFran
Sun Apr 22, 2018 7:22 pm
Forum: Investing - Help with Personal Investments
Topic: Recreating VFINX cost basis?
Replies: 8
Views: 659

Re: Recreating VFINX cost basis?

Because the account was at Vanguard, I am a little surprised that Vanguard did not report the average basis of the non-covered shares. The ownership changes may have prevented Vanguard from reporting the average basis of the non-covered shares. You should be able to trust the numbers on the Form 109...
by FactualFran
Sat Apr 21, 2018 11:48 am
Forum: Investing - Help with Personal Investments
Topic: Recreating VFINX cost basis?
Replies: 8
Views: 659

Re: Recreating VFINX cost basis?

Start with the $5,000 initial purchase, add the dollar amount of subsequent purchases including reinvested distributions, subtract the basis of the shares previously sold. The basis of shares purchased in or after 2012 should be on the Form 1099-B that was received. That basis was also reported the ...
by FactualFran
Fri Apr 20, 2018 5:11 pm
Forum: Investing - Help with Personal Investments
Topic: First time backdoor Roth Conversion. form 8606 help
Replies: 23
Views: 1666

Re: First time backdoor Roth Conversion. form 8606 help

The values on Form 8606 corresponds to the situation where you made $5,500 of non-deductible contribution in 2017 you made a total of $21,770.68 non-deductible contributions prior to 2017 in 2017 you did a Roth conversion of $21,770.68 and that was the entire balance, in other words the IRA has a cu...
by FactualFran
Wed Apr 18, 2018 3:32 pm
Forum: Personal Consumer Issues
Topic: Open Office Calc problem
Replies: 17
Views: 1260

Re: Open Office Calc problem

Not adjusting cell addresses that refer to another file when rows or columns are added or deleted may be a "feature". I get the same behavior. When I copy a cell with a reference to another file, the relative row and column values in the reference get adjusted when pasted. For example, copying a cel...
by FactualFran
Sat Apr 14, 2018 12:53 pm
Forum: Personal Finance (Not Investing)
Topic: Making quarterly estimated payments w/ deductions?
Replies: 11
Views: 444

Re: Making quarterly estimated payments w/ deductions?

You can pay what you think what the actual needed payment should be, but when your income tax return for a year is processed you will be accessed underpayment penalties if you did not pay enough in a timely manner. In general, income tax authorities waive underpayment penalties only under certain co...
by FactualFran
Sat Apr 14, 2018 12:08 pm
Forum: Personal Finance (Not Investing)
Topic: New York State income tax bracket is not a marginal rate?
Replies: 30
Views: 2049

Re: New York State income tax bracket is not a marginal rate?

I went to look at the tax tables for calculating NY taxes. On one page it looks like all the brackets are marginal, including the top bracket, but on the other page it looks like the top bracket is absolute. I wish I could find out more to help me better understand how this works. Looking at the Ta...
by FactualFran
Fri Apr 13, 2018 2:35 pm
Forum: Investing - Theory, News & General
Topic: Muni Money Market funds starting to look good!
Replies: 139
Views: 23938

Re: Muni Money Market funds starting to look good!

So will it run up at the end of every quarter? I did see it run up at the end of the year and into early January and then run down throughout January. Just curious why the Muni Monney Market does this and the Prime does not. I don't think looking at the full year makes sense as the overall rate has...
by FactualFran
Fri Apr 13, 2018 2:25 pm
Forum: Personal Finance (Not Investing)
Topic: Estimated Taxes: Do you have to pay in equal installments?
Replies: 45
Views: 9475

Re: Re:

I'm resuscitating this Topic to confirm if what you said in 2009 still holds true (if it was true then :wink:). What you said then it what makes the most sense to me: paying by each due date the liability of the immediately prior 'IRS quarter'. No more no less. Now, can that approach get a tax paye...
by FactualFran
Thu Apr 12, 2018 2:59 pm
Forum: Investing - Help with Personal Investments
Topic: What to do with $23,000 in EE US savings bonds in Treasury Direct?
Replies: 4
Views: 531

Re: What to do with $23,000 in EE US savings bonds in Treasury Direct?

EE bonds from the 1990s that were guaranteed to have a redemption value of at least twice the issue price after 17 years have already doubled in value. Ones with a current earnings rate of about 1.6% will earn a variable rate of interest that is based on 5-year Treasury security yields. Any that hav...
by FactualFran
Wed Apr 11, 2018 2:33 pm
Forum: Personal Finance (Not Investing)
Topic: Schedule AI and Quarterly Tax Payments
Replies: 15
Views: 972

Re: Schedule AI and Quarterly Tax Payments

On the flip side, does this mean that if you receive a large bonus at the beginning of the year (e.g., 50% of your total income), that you don't have to make a large estimated tax payment in Q1 given half of the year's income occurred in that quarter? For example, if your annual income was $400k an...
by FactualFran
Tue Apr 10, 2018 5:25 pm
Forum: Investing - Theory, News & General
Topic: "Don't Use the 200-Day Moving Average as a Sell Signal" - Ben Carlson
Replies: 35
Views: 2490

Re: "Don't Use the 200-Day Moving Average as a Sell Signal" - Ben Carlson

Doc wrote:
Tue Apr 10, 2018 5:07 pm
April 2nd ?

Oh, I guess if a guy can predict something a month in advance we should pay attention to him. Not.
Thanks. The article has a publication date of April 10. On April 2 the S&P 500 price index was 0.3% below its 200-day moving average.
by FactualFran
Tue Apr 10, 2018 5:18 pm
Forum: Personal Finance (Not Investing)
Topic: Schedule AI and Quarterly Tax Payments
Replies: 15
Views: 972

Re: Schedule AI and Quarterly Tax Payments

Does this make sense? If I generate capital gains from my taxable account, do those need to be included on Schedule AI as well? (presumably that's somewhere in the instructions, right?) If the end-of-year bonus is large enough, then to avoid underpayment penalties you will need to include with your...
by FactualFran
Tue Apr 10, 2018 4:51 pm
Forum: Investing - Theory, News & General
Topic: "Don't Use the 200-Day Moving Average as a Sell Signal" - Ben Carlson
Replies: 35
Views: 2490

Re: "Don't Use the 200-Day Moving Average as a Sell Signal" - Ben Carlson

According to the article: "On March 2, the S&P 500 Index closed below its 200-day moving average for the first time in almost two years, and has been bouncing around that level ever since." However, the using data from Yahoo, on March 2 the S&P 500 index closed above its 200-day moving average. On M...
by FactualFran
Tue Apr 10, 2018 4:30 pm
Forum: Investing - Help with Personal Investments
Topic: Traditional recharacterized/conversation
Replies: 9
Views: 279

Re: Traditional recharacterized/conversation

According to the instructions for Form 1099-R, code 2 is to be used when the participant has not reached age 59-1/2 and the distribution is known to be a Roth IRA conversion.
by FactualFran
Tue Apr 10, 2018 3:32 pm
Forum: Personal Finance (Not Investing)
Topic: Schedule AI and Quarterly Tax Payments
Replies: 15
Views: 972

Re: Schedule AI and Quarterly Tax Payments

Yes, you should consider using Schedule AI for 2018. You should start now and use it to determine the minimum you need to pay for the first quarter of 2018 based your actual income during the first quarter. If you receive a bonus in the fourth quarter, that income will affect the minimum amount to p...
by FactualFran
Mon Apr 09, 2018 3:42 pm
Forum: Investing - Help with Personal Investments
Topic: 2-yr treasury ladder with 6-month rungs
Replies: 13
Views: 1311

Re: 2-yr treasury ladder with 6-month rungs

I'm considering starting a 2-yr treasury ladder with 6-month rungs at Fidelity. Using 6 month rungs will result in receiving interest payments twice a year. Those who want to receive interest payments monthly can build a ladder of six 2-year Notes with unevenly spaced rungs. One approach is to init...
by FactualFran
Sat Apr 07, 2018 1:43 pm
Forum: Personal Finance (Not Investing)
Topic: Annualized Estimated Taxes - question on first quarter adjustments
Replies: 5
Views: 515

Re: Annualized Estimated Taxes - question on first quarter adjustments

For things that are certain, is it legit to front load to the first quarter? As far as I can tell, it is legit to include in the adjusted gross income for a quarter (on line 1 of schedule AI in the column for the quarter) adjustments to the income that occurred during the quarter. Schedule AI calcu...
by FactualFran
Fri Apr 06, 2018 2:26 pm
Forum: Personal Finance (Not Investing)
Topic: Annualized Estimated Taxes - question on first quarter adjustments
Replies: 5
Views: 515

Re: Annualized Estimated Taxes - question on first quarter adjustments

I suggest that when calculating the estimated payment to currently make, that you not include reductions to income that you currently have but may not have when you file your tax return after the end of the year. Whether or not there were underpayments for a quarter depend on the values in Schedule ...
by FactualFran
Thu Apr 05, 2018 6:11 pm
Forum: Personal Finance (Not Investing)
Topic: My first CP2000 letter from IRS! Am I missing something?
Replies: 14
Views: 1293

Re: My first CP2000 letter from IRS! Am I missing something?

Another guess is that the IRS was not able to reconcile IRA distributions on 1099-R forms with IRA rollover contributions on 5498 forms. If the tax return had included a statement that a rollover was done from an IRA to a 401(k), as the instructions for Form 1040 indicated, the IRS would have known ...
by FactualFran
Thu Apr 05, 2018 2:31 pm
Forum: Personal Finance (Not Investing)
Topic: Backdoor Roth Questions
Replies: 4
Views: 465

Re: Backdoor Roth Questions

It may matter how you get to the screen where you exchange funds. How you get to the screen may be the way used to determine whether the exchange of funds between a traditional IRA to a Roth IRA is a traditional IRA to Roth IRA conversion or a contribution to a Roth IRA. If there is a way to start a...
by FactualFran
Thu Apr 05, 2018 1:54 pm
Forum: Investing - Theory, News & General
Topic: Article on "Buckets" at Morningstar. How Does The Bucket Approach To Retirement Allocation apply to you?
Replies: 23
Views: 2495

Re: Article on "Buckets" at Morningstar. How Does The Bucket Approach To Retirement Allocation apply to you?

Answers to questions in the opening post: 1. "Bucket Strategies" don't apply to me; I don't use a bucket portfolio. 2. I'm not sure what favoring Buckets 1 & 2 means. If it means that the bucket portfolio that Christine Benz has backtested had as of the start of 2018 much more in Buckets 1 & 2 than ...
by FactualFran
Wed Apr 04, 2018 2:18 pm
Forum: Investing - Help with Personal Investments
Topic: Changing cost basis method from Average to Actual Cost
Replies: 18
Views: 1321

Re: Changing cost basis method from Average to Actual Cost

3. The website also states that "Your change from the average cost method to the specific identification method will be prospective only. If you sold shares of a position in this account while it was set to the average cost method, shares acquired before converting to the specific identification me...
by FactualFran
Tue Apr 03, 2018 6:08 pm
Forum: Investing - Help with Personal Investments
Topic: Qualified dividends
Replies: 3
Views: 595

Re: Qualified dividends

Were the stocks held at both brokerages long enough to meet the 60 days holding requirement? In order for a taxpayer to get the lower tax rate on qualified dividends, common stocks must be held for more than 60 days during the 121-day period that starts 60 days before the ex-dividend date.
by FactualFran
Tue Apr 03, 2018 6:00 pm
Forum: Investing - Theory, News & General
Topic: Anomaly in S&P 500 monthly returns, Feb and Mar 2000
Replies: 20
Views: 1701

Re: Anomaly in S&P 500 monthly total return for 2/2000 and 3/2000?

In short, there is no anomaly, and no statistical glitch. The difference is real... represents a "long tail" event in small-cap stocks. So in 2000, were most of the tech stocks outside the S&P 500 and in the small-cap and mid-cap categories???? According to annual and semiannual reports of the Vang...
by FactualFran
Tue Apr 03, 2018 4:04 pm
Forum: Personal Finance (Not Investing)
Topic: 8606 form - am I filling it correctly?
Replies: 32
Views: 2081

Re: 8606 form - am I filling it correctly?

I'm not completely sure of when one should use all the lines in form 8606, vs. doing some in 8606 and others in Publication 590-B worksheet 1-1, but what you show is consistent with tfb's example in Backdoor Roth: A Complete How-To . In other words, lines 6-12 on 8606 are blank, and (presumably) th...
by FactualFran
Tue Apr 03, 2018 3:46 pm
Forum: Investing - Theory, News & General
Topic: Anomaly in S&P 500 monthly returns, Feb and Mar 2000
Replies: 20
Views: 1701

Re: Anomaly in S&P 500 monthly total return for 2/2000 and 3/3000?

The Vanguard Total Stock Market fund was trying to track the Wilshire 5000 at that time. Using index values from Wilshire, the return of the Wilshire 5000 total return index was 2.240% for 02/2000 and 5.940% for 03/2000 (as opposed to the total returns of VTSMX in the opening post of 2.545% and 5.68...
by FactualFran
Tue Apr 03, 2018 2:02 pm
Forum: Personal Finance (Not Investing)
Topic: How did you file your income taxes?
Replies: 77
Views: 4028

Re: How did you file your income taxes?

I e-file the Federal income tax return using Free File Fillable Forms. I mail a paper State income tax return using fill-in PDF files from the State's income tax web site. I calculate income taxes semi-manually. I have written a spreadsheet with a set of rows for each income tax form I need to compl...