Search found 661 matches

by FactualFran
Fri Jul 13, 2018 1:48 pm
Forum: Investing - Theory, News & General
Topic: Total returns
Replies: 20
Views: 1637

Re: Total returns

But now looking at my vtsax, the difference between the benchmark of 21.19% and 21.17% of vtsax's total return in 2017, is a difference of .02%, not the ER of .04%. Do you know why could be? https://investor.vanguard.com/mutual-funds/profile/performance/vtsax/cumulative-returns I would wager that m...
by FactualFran
Fri Jul 13, 2018 1:30 pm
Forum: Investing - Theory, News & General
Topic: Treasury Bond Yielding 9%
Replies: 9
Views: 1161

Re: Treasury Bond Yielding 9%

When settling my father's estate a while back, one of his holdings caught my eye: a treasury bond paying 9%. It matured in 2020 I think...not sure when the inception date was. The most recently issued Treasury Bond with an interest rate of at least 9.00% was issued 11/22/1988 and matures 11/15/2018...
by FactualFran
Fri Jul 13, 2018 1:12 pm
Forum: Investing - Theory, News & General
Topic: Total returns
Replies: 20
Views: 1637

Re: Total returns

Just to reinforce the fact that the reported total return is after expenses, if the only transactions for an account in Admiral shares of the fund were a purchase of $10,000 at the end of 2016 and reinvesting distributions, then the account balance at the end of 2017 would have been $12,755. The acc...
by FactualFran
Thu Jul 12, 2018 5:10 pm
Forum: Investing - Theory, News & General
Topic: Total returns
Replies: 20
Views: 1637

Re: Total returns

https://investor.vanguard.com/mutual-funds/profile/performance/vgtsx/cumulative-returns https://investor.vanguard.com/mutual-funds/profile/performance/vtiax/cumulative-returns According to the links above, the benchmark returns were 21.41%. Expense ratios: .11% vtiax and .17% for vgtsx Returns: 27....
by FactualFran
Wed Jul 11, 2018 4:24 pm
Forum: Investing - Theory, News & General
Topic: Total returns
Replies: 20
Views: 1637

Re: Total returns

A likely reason that the difference in the total returns is larger than the difference between the expense ratios is that the total returns are calculated with the NAVs rounded to two digits after the decimal point. With the investors shares of the fund, if the more precise NAV of the fund had been ...
by FactualFran
Tue Jul 10, 2018 5:36 pm
Forum: Personal Consumer Issues
Topic: Continuing Care Community versus 55 + (no LTC and modest assets)
Replies: 61
Views: 3844

Re: Continuing Care Community versus 55 + (no LTC and modest assets)

Interesting. So, if you are still self sufficient and you want to leave the CCRC, let's say change in ownership or management causing poor service levels, will they buy back your unit or let you sell it so you can move elsewhere? In general, the CCRC does not buy it back. The A Primer on CCRC Resid...
by FactualFran
Tue Jul 10, 2018 2:05 pm
Forum: Investing - Theory, News & General
Topic: Wellesley alternative for taxable acct.?
Replies: 25
Views: 2810

Re: Wellesley alternative for taxable acct.?

FactualFran, Sorry everyone if I am not clear on my thinking, I am still a bit new to the BH arena. I just thought, looking at how the Wellesley fund has had only 4 negative return years, in over 30 years, and due to that success, someone (Vanguard) would have figured out a way to construct it's ow...
by FactualFran
Mon Jul 09, 2018 2:00 pm
Forum: Investing - Theory, News & General
Topic: Wellesley alternative for taxable acct.?
Replies: 25
Views: 2810

Re: Wellesley alternative for taxable acct.?

Is there an alternative option to mirror the Wellesley Income (VWIAX) that can be placed in a taxable acct.? Is it possible to construct your own Wellesley style fund, using the Tax-Managed or Tax-Exempt bond funds, for the 60% bond side. As for the 40% stock side I am at a loss. For the stock side...
by FactualFran
Mon Jul 09, 2018 1:50 pm
Forum: Investing - Help with Personal Investments
Topic: Vanguard Municipal Money Market VMSXX 1.39%
Replies: 208
Views: 22635

Re: Vanguard Municipal Money Market VMSXX 1.39%

Vanguard reports to the 4th decimal place. I don't know if that many digits is required under the new rules (by new, I mean, the post-crisis rules on breaking the buck. I think they came into effect a year or two ago, but I'm not sure exactly when.) That prompts the question: are transactions done ...
by FactualFran
Sat Jul 07, 2018 1:45 pm
Forum: Investing - Help with Personal Investments
Topic: Vanguard Municipal Money Market VMSXX 1.39%
Replies: 208
Views: 22635

Re: Vanguard Municipal Money Market VMSXX 1.39%

A difference between a muni MM fund and longer term muni funds is a MM fund maintains a constant NAV, or at least tries to maintain a constant NAV. With the longer term funds, changes in the market value of holdings of the fund affect the NAV of the fund. With MM funds, changes in the market value ...
by FactualFran
Sat Jul 07, 2018 12:45 pm
Forum: Investing - Help with Personal Investments
Topic: Vanguard Municipal Money Market VMSXX 1.39%
Replies: 208
Views: 22635

Re: Vanguard Municipal Money Market VMSXX 1.39%

Why is it that longer term muni funds don’t fluctuate as much? Seems like short-intermed. Muni funds have been more stable in yield. I’m tired of constantly having to watch this fund for better alternatives. Thinking of switching to short-Ltd term muni for most of my cash reserves. A difference bet...
by FactualFran
Sat Jul 07, 2018 11:53 am
Forum: Investing - Help with Personal Investments
Topic: Vanguard Municipal Money Market VMSXX 1.39%
Replies: 208
Views: 22635

Re: Vanguard Municipal Money Market VMSXX 1.39%

Why’s muni mm going down again from 1.38% earlier this week now to 1.31%? Thought this was a quarterly phenomenon? The calendar quarter ended a week ago. A calendar quarter phenomenon that results in muni mm yields temporarily rising as the end of a quarter is approached, is now in the decreasing y...
by FactualFran
Thu Jul 05, 2018 4:42 pm
Forum: Forum Issues and Administration
Topic: Forum software upgrade bug reports and change requests
Replies: 450
Views: 83452

Re: Forum software upgrade bug reports and change requests

I tried quoting your post, but the BBCode interpreter could not handle the format you've shown. (Everything after the first BBCode resulted in an underlined link.) The BBCode displayed in your post is not what you've used. Also, I don't see the extra line breaks in your example post. That's right, ...
by FactualFran
Thu Jul 05, 2018 2:01 pm
Forum: Personal Finance (Not Investing)
Topic: REITs - 20% Qualified Income Deduction
Replies: 7
Views: 1043

Re: REITs - 20% Qualified Income Deduction

It was discussed to some extent in the "IRS publishes draft 2018 1040 - Huge changes made" topic, starting at about the viewtopic.php?f=2&t=252565&p=4000292#p3995923 post.
by FactualFran
Thu Jul 05, 2018 1:51 pm
Forum: Forum Issues and Administration
Topic: Forum software upgrade bug reports and change requests
Replies: 450
Views: 83452

Re: Forum software upgrade bug reports and change requests

Recently posts that I have made with [url=... ] have been oddly rendered. The post https://www.bogleheads.org/forum/viewtopic.php?f=10&t=253203&newpost=4004280#p4004314 was made using bbcode of the form [url=... ]ABCD[/url ] but what is displayed has unexpected line breaks before and after the conte...
by FactualFran
Wed Jul 04, 2018 7:02 pm
Forum: Investing - Theory, News & General
Topic: Jack Bogle is not a "buy&hold at any price goose", he looks at valuations, he sold his stocks in year 2000
Replies: 48
Views: 6543

Re: Jack Bogle is not a "buy&hold at any price goose", he looks at valuations, he sold his stocks in year 2000

Well I have just seen this video where Jack Bogle himself says he sold his stocks in year 2000 because valuations did not make any sense to him in those years. :shock: https://youtu.be/k6ra5POdsYg Minute 2:57 "I said, you know... with bonds yielding around 7% today, stocks yielding around 1%... sto...
by FactualFran
Mon Jul 02, 2018 1:32 pm
Forum: Personal Finance (Not Investing)
Topic: IRS publishes draft 2018 1040 - Huge changes made
Replies: 156
Views: 16314

Re: IRS publishes draft 2018 1040 - Huge changes made

jebmke wrote:
Mon Jul 02, 2018 1:01 pm
My (limited) understanding is that this applies to individual REITS but not to funds. Is that your understanding?
Yes, that is my understanding, so far. More details of which are in a post under the topic Re: Indiv. REITs in taxable because of new tax law? Aargh!.
by FactualFran
Mon Jul 02, 2018 12:50 pm
Forum: Investing - Theory, News & General
Topic: Secondary bond selling price and market discount
Replies: 5
Views: 432

Re: Secondary bond selling price and market discount

If the concern is not about taxation in any way, then accrued discount is not an issue. Accrued discount is a tax issue. If the concern is about calculating investment return, then what matters are the prices of the transactions.
by FactualFran
Mon Jul 02, 2018 12:46 pm
Forum: Personal Finance (Not Investing)
Topic: IRS publishes draft 2018 1040 - Huge changes made
Replies: 156
Views: 16314

Re: IRS publishes draft 2018 1040 - Huge changes made

Given this language, I don't see any validity to a claim that dividend income from REITs constitutes "qualified business income" for purposes of the 20% deduction. Strictly speaking, dividend income from REITs is not qualified business income. However, 20% of certain dividend income from REITs is i...
by FactualFran
Fri Jun 29, 2018 2:44 pm
Forum: Personal Finance (Not Investing)
Topic: IRS publishes draft 2018 1040 - Huge changes made
Replies: 156
Views: 16314

Re: IRS publishes draft 2018 1040 - Huge changes made

Which federal forms do the math?? :confused My state fillable forms do, but not the federal forms I use. Am I doing it wrong? What you are likely doing, I would not call it wrong, is that you are not using the Federal Free Fillable Forms web site. That web site supports a tax return being completed...
by FactualFran
Fri Jun 29, 2018 2:30 pm
Forum: Investing - Help with Personal Investments
Topic: Wellesley and Wellington performance on Simba's Backtest Spreadsheet
Replies: 6
Views: 667

Re: Wellesley and Wellington performance on Simba's Backtest Spreadsheet

Can you talk me out of this purchase? Unless I did a bad job searching, I haven’t really seen this covered when I search this forum. I'm not going to try to talk you out of it. However, I suggest you analyze what the result would have been by investing in an index fund of highly rated bonds and an ...
by FactualFran
Fri Jun 29, 2018 2:16 pm
Forum: Personal Finance (Not Investing)
Topic: $0 cap gain if total/adjusted/taxable (which is it?) income under $50600.
Replies: 2
Views: 457

Re: $0 cap gain if total/adjusted/taxable (which is it?) income under $50600.

For the 2018 tax year, I understand that as a single person, I'll pay zero long-term capital gains tax on the first $38600 of capital gains, as long as my "income" is less than $50600. QUESTION: is that "income" 1) the total (1040: line 22), 2) adjusted (line 37), or 3) taxable (line 43)? That inco...
by FactualFran
Fri Jun 29, 2018 2:00 pm
Forum: Personal Finance (Not Investing)
Topic: IRS publishes draft 2018 1040 - Huge changes made
Replies: 156
Views: 16314

Re: IRS publishes draft 2018 1040 - Huge changes made

At the same time, schools teach mathematics as plugging numbers into algorithms rather than teaching identification of suitable algorithms or even inventing one's own. Tax software, and probably "smart" fillable forms, support this trend. Developing your own calculations, with the support and full ...
by FactualFran
Thu Jun 28, 2018 1:55 pm
Forum: Personal Finance (Not Investing)
Topic: IRS publishes draft 2018 1040 - Huge changes made
Replies: 156
Views: 16314

Re: IRS publishes draft 2018 1040 - Huge changes made

I do all calculations, minor and major, in Excel. Instead of using Fillable Forms, I use regular PDF forms that allow entering data. I transfer my numbers from my XLS into PDF and double check them in the process. This is not a fast process, but as the result I never make careless mistakes. (And de...
by FactualFran
Tue Jun 26, 2018 1:22 pm
Forum: Personal Finance (Not Investing)
Topic: IRS publishes draft 2018 1040 - Huge changes made
Replies: 156
Views: 16314

Re: IRS publishes draft 2018 1040 - Huge changes made

A previous poster mention estimated tax payments being moved off. I've never paid them. I understand that impacts mainly self-employed people, of which there are many, but those people are never going to be able to use a one-page form anyway since they are probably itemizing. They aren't the target...
by FactualFran
Sat Jun 23, 2018 12:22 pm
Forum: Personal Finance (Not Investing)
Topic: AARP: 10 Commandments [of Money, by Allan Roth]
Replies: 19
Views: 2687

Re: AARP: 10 Commandments [of Money, by Allan Roth]

XI. Thou shalt not do business with an organization that wastes money and material by sending unsolicated mail to you for many years, even though you have never expressed any interest in being a member.
by FactualFran
Fri Jun 22, 2018 2:45 pm
Forum: Personal Finance (Not Investing)
Topic: Roth IRA conversion with non-deductible contributions
Replies: 12
Views: 1009

Re: Roth IRA conversion with non-deductible contributions

Any challenges/pitfalls I should be aware of, if I’m doing a conversion in 2018, and then making an after-tax contribution in March 2019 for 2018? Will Turbotax handle this correctly, or is there some trick I need to be aware of when completing the Form 8606? Prepare your income tax return after yo...
by FactualFran
Thu Jun 21, 2018 4:03 pm
Forum: Investing - Help with Personal Investments
Topic: Treasury Direct Question
Replies: 23
Views: 2447

Re: Treasury Direct Question

I'm currently buying T-bills through Treasury Direct website rather than buying treasuries through a brokerage. Based on reading through the responses on this question, it seemed as though the tax reporting for T-bills purchased through Treasury Direct was much more onerous than just receiving a fo...
by FactualFran
Thu Jun 21, 2018 2:11 pm
Forum: Investing - Help with Personal Investments
Topic: Treasury Direct Question
Replies: 23
Views: 2447

Re: Treasury Direct Question

Can someone explain the tax reporting for T-bills bought from Treasury Direct? Do you have to log (I use Turbotax) each individual T-bill that is bought? Does a re-enrollment constitute a separate T-bill from the first T-bill purchased? Trying to wrap my arms around the burden of tax reporting for ...
by FactualFran
Wed Jun 20, 2018 3:07 pm
Forum: Personal Finance (Not Investing)
Topic: Noncovered shares, switch cost basis to specific id
Replies: 6
Views: 570

Re: Noncovered shares, switch cost basis to specific id

We have noncovered shares of several Vanguard mutual funds. If we have never sold any shares of the pertinent mutual fund can we switch our cost basis to specific identification? If you have not sold any non-covered shares of a mutual fund, then you have not established a cost basis method (for the...
by FactualFran
Tue Jun 19, 2018 5:16 pm
Forum: Personal Finance (Not Investing)
Topic: I don't trust my own estimate of expenses
Replies: 29
Views: 2436

Re: I don't trust my own estimate of expenses

The degree of detail to use is a personal choice. Prior to retiring, I calculated a rough estimate once of year that was: wages/salary line from tax return minus income taxes paid minus net new investment made from wages/salary line. That estimate has turned out to be a good enough estimate of what ...
by FactualFran
Tue Jun 19, 2018 5:04 pm
Forum: Investing - Help with Personal Investments
Topic: Calculating safe withdrawal rate (dialing it back)
Replies: 8
Views: 1285

Re: Calculating safe withdrawal rate (dialing it back)

I suggest that you think in terms of safe withdrawal only for paying usual living expenses for you and your spouse in retirement. Do not include other known expenses, such as to get your children to the point where they can provide for themselves. Have separate accounts for the former and the latter...
by FactualFran
Tue Jun 19, 2018 4:49 pm
Forum: Investing - Help with Personal Investments
Topic: Treasury Direct Question
Replies: 23
Views: 2447

Re: Treasury Direct Question

Full discloser, I bought one 4 -week Tbill for $100, just to see how this all works. The auction was today and I now see this information: Maturity Date = 07/19/2018 High Rate = 1.815% Investment Rate = 1.843% Price Per $100 = 99.858833 So I understand since this is a one month bond, that I would t...
by FactualFran
Tue Jun 19, 2018 2:44 pm
Forum: Investing - Theory, News & General
Topic: Seeking input from folks invested in Van. Tax Managed Balanced Fund
Replies: 10
Views: 957

Re: Seeking input from folks invested in Van. Tax Managed Balanced Fund

Reading some of the data on the fund, it almost seems too good to be true. Hope not. What is it about the fund that almost seems too good to be true? I have never owned shares of the fund, but I have investigated it. It looks as if recently about 60% of its distributions are federally tax-exempt, w...
by FactualFran
Mon Jun 18, 2018 5:41 pm
Forum: Investing - Theory, News & General
Topic: Indiv. REITs in taxable because of new tax law? Aargh!
Replies: 15
Views: 2168

Re: Indiv. REITs in taxable because of new tax law? Aargh!

A direct holder of a REIT will generally be able to apply the 20% business income deduction, but a holder of a REIT mutual fund will not. This is a premature assumption. It is true that the new tax law includes REIT dividends in the 20% business income deduction, but there is no text that specifies...
by FactualFran
Mon Jun 18, 2018 5:28 pm
Forum: Investing - Theory, News & General
Topic: Indiv. REITs in taxable because of new tax law? Aargh!
Replies: 15
Views: 2168

Re: Indiv. REITs in taxable because of new tax law? Aargh!

If you hold in taxable you pay 0% taxes on the portion of the dividend that is attributable to “return of capital” if you hold in an ira you will eventually get taxed on it at ordinary income tax rates? In a tax-deferred account, dividends, include return of capital dividends, are not taxed, not ev...
by FactualFran
Mon Jun 18, 2018 2:44 pm
Forum: Personal Finance (Not Investing)
Topic: Tracking spending before retirement useful for estimating retirement expenses?
Replies: 72
Views: 4367

Re: Tracking spending before retirement useful for estimating retirement expenses?

My average annual living expenses in retirement, for the about 10 years so far, has been slightly less than the amount leading up to retirement. Leading up to retirement, I used the annual spending as an estimate of what my spending would be in retirement. That estimate has turned out to be sufficie...
by FactualFran
Sat Jun 16, 2018 12:43 pm
Forum: Personal Finance (Not Investing)
Topic: Rule of 55 is it official?
Replies: 50
Views: 9566

Re: Rule of 55 is it official?

Yes. Specifically at my company, no partial withdrawals from a 401k were allowed. You either converted to IRA in house or transferred to another IRA trustee. Either way, you could not exercise the 55-59.5 penalty avoidance. Even if a former employer does not allow partial withdrawals from a 401(k),...
by FactualFran
Thu Jun 14, 2018 6:09 pm
Forum: Investing - Help with Personal Investments
Topic: Vanguard Municipal Money Market VMSXX 1.39%
Replies: 208
Views: 22635

Re: Vangaurd Municipal Money Market VMSXX 1.39%

late 2017 through today swings are more dramatic Also, why did you choose this data set? Is it representative of the next 18 years? I choose 2000 mostly at random, avoiding years during which the yield of municipal money market funds were very low. It shows that increase in the yield of money marke...
by FactualFran
Thu Jun 14, 2018 5:28 pm
Forum: Investing - Help with Personal Investments
Topic: Vanguard Municipal Money Market VMSXX 1.39%
Replies: 208
Views: 22635

Re: Vangaurd Municipal Money Market VMSXX 1.39%

What's intriguing is that this seems to have started late last year after the new tax bill passed. No idea of the mechanism, although with so many munis packaged in closed end funds, it wouldn't surprise me if it's a supply or liquidity issue related to muni portfolio re-jiggering post tax reform.....
by FactualFran
Thu Jun 14, 2018 2:04 pm
Forum: Personal Finance (Not Investing)
Topic: Experiences with 1099 INT reporting and/or manually adjusting state tax exempt US Agency bond interest?
Replies: 5
Views: 327

Re: Experiences with 1099 INT reporting and/or manually adjusting state tax exempt US Agency bond interest?

So where do brokerage 1099-INTs put the above state tax exempt interest Agency Bond interest? It looks like taxpayers/preparers have to make a manual adjustment, which is always risky. I want to avoid the state equivalent of a CP2000. In the annual tax reporting statements that I have received from...
by FactualFran
Tue Jun 12, 2018 2:28 pm
Forum: Investing - Help with Personal Investments
Topic: Investing when someone else gets all dividends
Replies: 80
Views: 5006

Re: Investing when someone else gets all dividends

The trustee is also tasked to "determine in a fair, equitable, and practical manner what will be credited, charged, and apportioned between principal and income". That's about all the instruction there is. It looks as if the trustee has some discretion about how to apportion the total distributions...
by FactualFran
Mon Jun 11, 2018 2:23 pm
Forum: Investing - Help with Personal Investments
Topic: EE savings bonds “doubling” in 2019
Replies: 7
Views: 1456

Re: EE savings bonds “doubling” in 2019

If we continue to hold them, will interest going forward compound on the newly adjusted higher face value amount, or only on the underlying principal value absent the Treasury guarantee? Can’t find this nuance addressed on the Treasury Direct website. The interest going forward is based on a recent...
by FactualFran
Thu Jun 07, 2018 6:24 pm
Forum: Investing - Theory, News & General
Topic: Understanding Vanguard statement
Replies: 41
Views: 2647

Re: Understanding Vanguard statement

I am sorry, nolesrule for not understanding that the P&W figure represented bringing in money from old brokerage account. I had been looking at the 60,250 as a purchase of fund shares in the new Van account. Then I was told that the 60,250 did not represent sales of shares. I got confused. Anyway, ...
by FactualFran
Wed Jun 06, 2018 6:10 pm
Forum: Investing - Help with Personal Investments
Topic: Vanguard Marketing [Transition to brokerage account]
Replies: 16
Views: 1216

Re: Vanguard Marketing

I hope in addition to being deluged with several pages of legalese, an option to open a document like https://www.vanguard.com/pdf/vbcfaq_062013.pdf was offered.
by FactualFran
Wed Jun 06, 2018 2:32 pm
Forum: Investing - Theory, News & General
Topic: Understanding Vanguard statement
Replies: 41
Views: 2647

Re: Understanding Vanguard statement

Then you go to the next section of statement and under Total Cost column, you take all the number of shares and multiply those by the corresponding average price per share, and add up all those numbers and get $45,000. That is what you actually paid for all your holdings. Unfortunately, my Vanguard...
by FactualFran
Fri May 25, 2018 5:27 pm
Forum: Personal Finance (Not Investing)
Topic: trustee to trustee IRA transfer
Replies: 5
Views: 314

Re: trustee to trustee IRA transfer

What you should do is to tell the IRA custodian you are doing the rollover from that you want to a Direct Rollover. The "from" IRA custodian should ask you the name of the IRA custodian you are doing the rollover to, so the "from" IRA custodian can make the check payable to the "to" IRA custodian Fo...
by FactualFran
Wed May 23, 2018 2:06 pm
Forum: Personal Finance (Not Investing)
Topic: Do you file 8606 if you have TIRA but no backdoor Roth, and how?
Replies: 2
Views: 456

Re: Do you file 8606 if you have TIRA but no backdoor Roth, and how?

for 2017 tax yaer, I did made non deductable IRA contribution, but no roth conversion. I am woundering 1) If I should use turbo tax to create a ammendmend return and send everything ( 1040 etc) 2) or Just manyualy fill the 8606 and send the for to IRS? You should mail to the IRS a correctly complet...
by FactualFran
Mon May 21, 2018 2:49 pm
Forum: Investing - Theory, News & General
Topic: Is Vanguard anti-competitive?
Replies: 29
Views: 3176

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: 3176

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...