Search found 425 matches

by FactualFran
Tue Oct 17, 2017 4:24 pm
Forum: Investing - Theory, News & General
Topic: Vanguard's Global Wellesley Income and Global Wellington Funds in registration
Replies: 50
Views: 8797

Re: Vanguard's Global Wellesley Income and Global Wellington Funds in registration

Today (Oct. 17, 2017) Vanguard filed with the SEC a supplement to the previously filed prospectus for each of the new funds that each fund: "is holding a subscription period from October 18, 2017, through November 1, 2017. During this period, the Fund will invest in money market instruments rather t...
by FactualFran
Tue Oct 17, 2017 3:37 pm
Forum: Investing - Help with Personal Investments
Topic: Sell fund cost basis
Replies: 10
Views: 656

Re: Sell fund cost basis

When one uses Average Basis, the shares sold are the first shares in. That is, Average Basis forces FIFO. So there is Average Basis FIFO and Specific ID FIFO. There is also "I forgot to set the basis method" FIFO where one can choose at the time they fill out their tax return the basis method. Choo...
by FactualFran
Mon Oct 16, 2017 2:32 pm
Forum: Personal Finance (Not Investing)
Topic: ACA stay below 250% FPL for 2017?
Replies: 16
Views: 1224

Re: ACA stay below 250% FPL for 2017?

Is there any reason why I should still try to stay below 250% FPL for this year 2017 given the upheaval about CSR for 2018? In general, the lower your income the less the maximum premium payment. Going from just below 250% FPL to above it increases your maximum premium payment from being about 8.2%...
by FactualFran
Fri Oct 13, 2017 2:18 pm
Forum: Personal Finance (Not Investing)
Topic: Help me understand what happens with the new law and ACA subsidies
Replies: 80
Views: 5491

Re: Help me understand what happen with the new law and ACA subsidies

Help me understand what happen with the new law and ACA subsidies. My income is under 44k will I be affected? In another reply, rob65 wrote What was eliminated by the executive order was the cost sharing reduction that lowered deductibles, co-pays, and out-of-pocket maximums for Silver plans for pe...
by FactualFran
Wed Oct 04, 2017 5:51 pm
Forum: Investing - Theory, News & General
Topic: Sequence of returns and retirement
Replies: 8
Views: 1019

Re: Sequence of returns and retirement

Whether you are making sense depends on what you want to calculate. If you want to calculate what would have happened with 1966 as the starting year, then year 1 is 1966, year 2 is 1967, year 3 is 1968, and so on. 1966 as the starting year is a bad case scenario not only because of the return and in...
by FactualFran
Mon Sep 25, 2017 2:25 pm
Forum: Investing - Theory, News & General
Topic: VG wants everyone to transfer to a brokerage account?
Replies: 95
Views: 8569

Re: VG wants everyone to transfer to a brokerage account?

All the people who are completely unconcerned with reinvestment of dividends have probably never been confronted with Vg's IT method of treating wash sales which completely negates the use of specific ID cost basis I have never had a problem with Vg's IT method of anything. I have avoided making wa...
by FactualFran
Fri Sep 22, 2017 4:10 pm
Forum: Investing - Theory, News & General
Topic: VG wants everyone to transfer to a brokerage account?
Replies: 95
Views: 8569

Re: VG wants everyone to transfer to a brokerage account?

Having dividends reinvested in a taxable account is an accounting nightmare. Having those dividends reinvested in a separate account would be a nightmare squared. In my experience, it has not been a nightmare. For each mutual fund distribution that is reinvested in the same fund, I add one row to t...
by FactualFran
Thu Sep 21, 2017 2:25 pm
Forum: Investing - Theory, News & General
Topic: "Find out if your fund is declaring a quarterly dividend this month."
Replies: 17
Views: 3373

Re: VTSAX September 2017 Dividend date?

Looking at the Distribution web page for the fund about a minute ago, the most recent distribution of the fund was $0.253 per share with a Record Date of 09/20/2017, a Reinvestment Date of 09/21/2017, a Payable Date of 09/22/2017, and a not yet known Reinvestment Price.
by FactualFran
Wed Sep 20, 2017 4:42 pm
Forum: Investing - Help with Personal Investments
Topic: Vanguard total us dividend for Sept?
Replies: 10
Views: 1281

Re: Vanguard total us dividend for Sept?

or train yourself not to care. There is no evidence that I have seen that VG has ever failed to pay a quarterly or even a monthly dividend that was the norm for the fund/ETF? Are there that many people who depend on the dividend being delivered on say, 9/20 vs. 9/21 .....? A Vanguard fund that norm...
by FactualFran
Mon Sep 18, 2017 4:23 pm
Forum: Personal Consumer Issues
Topic: Transferring I Bonds to Son
Replies: 14
Views: 692

Re: Transferring I Bonds to Son

Here is a relevant quote from § 363.55 May I transfer my book-entry savings bonds to another person? (a) You may transfer a savings bond or a portion of a savings bond to the TreasuryDirect® account of another person in a minimum amount of $25. The transfer may only be made as a gift or in response ...
by FactualFran
Fri Sep 15, 2017 3:42 pm
Forum: Personal Finance (Not Investing)
Topic: Traditional IRA Deductions
Replies: 4
Views: 199

Re: Traditional IRA Deductions

According to the Limits if Covered by Employer Plan of IRS Publication 590-A, Contributions to Individual Retirement Arrangements (IRAs): "If either you or your spouse was covered by an employer retirement plan, you may be entitled to only a partial (reduced) deduction or no deduction at all, depend...
by FactualFran
Thu Sep 14, 2017 2:33 pm
Forum: Personal Finance (Not Investing)
Topic: Use IRS Direct Pay for estimated tax payments on irregular Roth conversions?
Replies: 19
Views: 1262

Re: Use IRS Direct Pay for estimated tax payments on irregular Roth conversions?

The answer to the question posed in the opening post: "Is this an acceptable (to the IRS) way of paying my estimated tax?" is maybe. After you file tax return for the year the IRS will check if the amount withheld (and only withheld, not including the estimated payments) was more than the income tax...
by FactualFran
Wed Sep 13, 2017 4:09 pm
Forum: Investing - Help with Personal Investments
Topic: Back-door Roth even if under limit?
Replies: 13
Views: 947

Re: Back-door Roth even if under limit?

mega317 wrote:
Wed Sep 13, 2017 3:41 pm
How does this affect earnings?
It does not affect earnings. Perhaps, I don't understand what you mean by earnings.
by FactualFran
Wed Sep 13, 2017 3:29 pm
Forum: Investing - Help with Personal Investments
Topic: Back-door Roth even if under limit?
Replies: 13
Views: 947

Re: Back-door Roth even if under limit?

Another, likely better, approach is: If your income for the year turns out to below the limit to have contributed to a Roth IRA, then recharacterize the contribution that was made earlier to a traditional IRA to a Roth, rather than doing a conversion to a Roth.
by FactualFran
Mon Sep 11, 2017 2:39 pm
Forum: Investing - Help with Personal Investments
Topic: first time CD through V Brokerage: any cautions?
Replies: 9
Views: 1221

Re: first time CD through V Brokerage: any cautions?

With a brokerage CD bought in the secondary market, you need to be aware than the quoted Yield to Maturity or Yield to Worst are calculated without including the commission that you may be charged on the transaction. Due to the commission, the yield for you will be less than the quoted yield. The lo...
by FactualFran
Mon Sep 11, 2017 1:50 pm
Forum: Investing - Theory, News & General
Topic: Vanguard Target Date 2015 vs Managed Payout - Is this a dumb question?
Replies: 10
Views: 1939

Re: Vanguard Target Date 2015 vs Managed Payout - Is this a dumb question?

This thing is paying out 5%/year and the balance is still increasing by 5%/year? Yes, the Vanguard Managed Payout fund has been paying out at least 5% on an investment made at the end of 2008. As of the end of 2016, the balance of the account would have been 5%/year greater than the balance at the ...
by FactualFran
Thu Sep 07, 2017 2:13 pm
Forum: Investing - Theory, News & General
Topic: Dividends and Withdrawal Rate
Replies: 39
Views: 3294

Re: Dividends and Withdrawal Rate

I understand that the "experts" categorize dividends as a withdrawal from your portfolio. But it just feels a lot safer than selling shares to fund withdrawals. I personally do not consider taking a 2% dividend as a 2% withdrawal from my portfolio. I suspect the "experts" would state it more carefu...
by FactualFran
Thu Sep 07, 2017 2:01 pm
Forum: Personal Finance (Not Investing)
Topic: Inherited Savings Bonds
Replies: 30
Views: 1928

Re: Inherited Savings Bonds

Interesting. So if the interest "should" have been reported in the year the bond matured, will the institution that cashes them now report interest income to the IRS? Yes, the institution that cashes Savings Bonds will issue a Form 1099. The institution will also ask for the Social Security Number ...
by FactualFran
Thu Sep 07, 2017 1:48 pm
Forum: Personal Finance (Not Investing)
Topic: Backdoor Roth. Is it listed on 1040 as IRA Distribution?
Replies: 51
Views: 2133

Re: Backdoor Roth. Is it listed on 1040 as IRA Distribution?

My concern is, errors are still there. He has simply changed the line that said taxable to zero from $5,500, admitting it was an error on his part, but still has the "$16,500" for the IRA distributions. Simply changing line 15b on Form 1040 sound questionable, as at least one other poster has point...
by FactualFran
Wed Sep 06, 2017 5:39 pm
Forum: Personal Finance (Not Investing)
Topic: Backdoor Roth. Is it listed on 1040 as IRA Distribution?
Replies: 51
Views: 2133

Re: Backdoor Roth. Is it listed on 1040 as IRA Distribution?

In the tax preparer's defense, (s)he may do a lot of business returns and yours is the only return that has a backdoor Roth. I wouldn't expect him to remember this from year to year. In fact, Bogleheads often report this same problem with their preparer. Their training/certification likely doesn't ...
by FactualFran
Wed Sep 06, 2017 5:09 pm
Forum: Personal Finance (Not Investing)
Topic: Inherited Savings Bonds
Replies: 30
Views: 1928

Re: Inherited Savings Bonds

My first question is will the Treasury even reissue savings bonds that have reached their maturity? No. Once they matured, the only option is to redeem the bonds. Also no to basis step-up. Also, the interest should have been reported on an income tax return for the year when the Savings Bonds matur...
by FactualFran
Wed Sep 06, 2017 2:24 pm
Forum: Investing - Theory, News & General
Topic: Vanguard funds with purchase fees; ETFs without. How come?
Replies: 26
Views: 2709

Re: Vanguard funds with purchase fees; ETFs without. How come?

The second thing is the data from ETF.com I posted here . We see that the average spread is 0.07% and the median premium discount is 0.31% (albeit with quite some variability). The sum of the two quantities is half the 0.75% purchase fee of the mutual fund. Thank you. It helps to have short and sim...
by FactualFran
Wed Sep 06, 2017 1:18 pm
Forum: Investing - Theory, News & General
Topic: Vanguard funds with purchase fees; ETFs without. How come?
Replies: 26
Views: 2709

Re: Vanguard funds with purchase fees; ETFs without. How come?

As for the real question, an investor is usually better off with the ETF because the costs there are lower unless perhaps you hold for a very long time. [...] There's no reason to expect the "ETF hidden costs" to be equal here and in general. Thanks, this was my perception, but I know very little a...
by FactualFran
Wed Sep 06, 2017 1:13 pm
Forum: Investing - Theory, News & General
Topic: Vanguard funds with purchase fees; ETFs without. How come?
Replies: 26
Views: 2709

Re: Vanguard funds with purchase fees; ETFs without. How come?

Maybe I should have phrased my question about the ETF liquidity stats differently. What do you see in there that could lead to ETF hidden costs similar to the MF purchase fee? The bid/ask spread involved in one (small) rebalancing operation isn't going to be 0.75% or even 0.25%, I suspect... The hi...
by FactualFran
Tue Sep 05, 2017 3:23 pm
Forum: Investing - Theory, News & General
Topic: Vanguard funds with purchase fees; ETFs without. How come?
Replies: 26
Views: 2709

Re: Vanguard funds with purchase fees; ETFs without. How come?

Ok, I understand that the ETF process involves a bid/spread, and this is an impactful hidden cost, but it still baffles me that 0.75% of the funds would be subtracted from each MF purchase. Dooesn't seem Vanguard-ish at all. I'm sure there is a good reason, and this probably has to do with liquidit...
by FactualFran
Tue Sep 05, 2017 1:52 pm
Forum: Investing - Help with Personal Investments
Topic: Corrected Consolidated 1099 from Vanguard - Help!
Replies: 11
Views: 1077

Re: Corrected Consolidated 1099 from Vanguard - Help!

If angelbell is interested in an independently calculated cost of the covered and non-covered shares to compare to what has been received from Vanguard, then I am willing to do the calculations if the only transactions were a single purchase automatic reinvestment of all distributions a single redem...
by FactualFran
Fri Sep 01, 2017 5:16 pm
Forum: Investing - Help with Personal Investments
Topic: Assigning Tax Lots to Mutual Funds
Replies: 10
Views: 590

Re: Assigning Tax Lots to Mutual Funds

If I'm reading the 1099 correctly, the basis was not reported. Additionally it seems as though I made another mistake. The 1099 says the following: 'Long Term Gains/Losses - Report on Form 8949, Part II with Box E checked. I think that I (or rather Tax Act) reported them on 1040 Line 8A which is in...
by FactualFran
Fri Sep 01, 2017 3:58 pm
Forum: Investing - Help with Personal Investments
Topic: Assigning Tax Lots to Mutual Funds
Replies: 10
Views: 590

Re: Assigning Tax Lots to Mutual Funds

The 1099 reported the sales against purchases made in 2008. Does the 1099 from the brokerage also indicate that the basis reported on it was not reported to the IRS? That should be the case with mutual funds. However, that does not completely get you off the hook of filing an amended return. When s...
by FactualFran
Fri Sep 01, 2017 2:50 pm
Forum: Investing - Help with Personal Investments
Topic: Assigning Tax Lots to Mutual Funds
Replies: 10
Views: 590

Re: Assigning Tax Lots to Mutual Funds

Because you had the mutual funds for eight or nine years and for the first three or four years distributions were reinvested, it sounds as if the shares purchased by reinvesting the distributions were purchased before the start of 2012. In that case, they are noncovered shares and the brokerage does...
by FactualFran
Thu Aug 31, 2017 2:21 pm
Forum: Investing - Help with Personal Investments
Topic: Corrected Consolidated 1099 from Vanguard - Help!
Replies: 11
Views: 1077

Re: Corrected Consolidated 1099 from Vanguard - Help!

I purchased PCRIX (Pimco Commodity Real Return Strategy Fund) many years ago and sold the entire balance in April, 2016. It was a one time purchase from Vanguard Brokerage, but reinvested dividends. The amount for PCRIX on "Short -term transactions for which basis is reported to IRS", "Long-Term tr...
by FactualFran
Wed Aug 30, 2017 2:13 pm
Forum: Investing - Theory, News & General
Topic: The Age 55 Rule for 401K Accounts
Replies: 38
Views: 6540

Re: The Age 55 Rule for 401K Accounts

Yes, he knew my age and confirmed I could take any amount. He wanted to be clear the money had to stay in the 401K, that if I rolled the account to an IRA before I turned 59.5 I would lose the penalty exemption. My plan is to roll it to Vanguard after August of next year. Never understood why so mu...
by FactualFran
Tue Aug 29, 2017 1:48 pm
Forum: Investing - Help with Personal Investments
Topic: What to do with series EE savings bonds?
Replies: 28
Views: 2900

Re: What to do with series EE savings bonds?

Exactly what rates would you check? The rate of 1.XX% quoted by the OP The rate of 1.07% in the opening post is correct. It was the rate determined in Nov. 2016 for EE Savings Bonds issued from May 1997 to Apr. 2005, whose earnings are 90% of a 6 month average of constant maturity 5-year Treasury r...
by FactualFran
Tue Aug 29, 2017 1:27 pm
Forum: Investing - Help with Personal Investments
Topic: What to do with series EE savings bonds?
Replies: 28
Views: 2900

Re: What to do with series EE savings bonds?

A simple question -- I hope. I know my 1992 EE Bonds are paying 4%. But is that 4 % on my original investment or on their present accumulated value? You must have missed my previous reply to a similar question. That reply included: "The current redemption value at a minimum is as if the bonds had a...
by FactualFran
Mon Aug 28, 2017 5:14 pm
Forum: Investing - Help with Personal Investments
Topic: What to do with series EE savings bonds?
Replies: 28
Views: 2900

Re: What to do with series EE savings bonds?

I would check those rates. I have EE bonds maturing from now until 2022 and I believe they are all paying 4%. Exactly what rates would you check? The recent posts have been about EE bonds issued Oct. 1992. Grt2bOutdoors posted that each bond purchased for $2,500 is now worth $8,340 (that value is a...
by FactualFran
Mon Aug 28, 2017 2:54 pm
Forum: Investing - Help with Personal Investments
Topic: What to do with series EE savings bonds?
Replies: 28
Views: 2900

Re: What to do with series EE savings bonds?

To confirm others -- I bought six 5 thousand dollar EE bond in Oct 1992. Rate went up to 6 % after a few years. Now down to 4%. My question: Is the 4% on the original amount paid? Or on the accumulated amount a bond is now worth. My 30 K has grown to 100K so hopefully the 4% is on the total value. ...
by FactualFran
Mon Aug 28, 2017 2:03 pm
Forum: Investing - Theory, News & General
Topic: Wash rule, ETFs and index funds
Replies: 67
Views: 4444

Re: Wash rule, ETFs and index funds

In IRS publications I have noticed that it sometimes says something like "the tax payer should ..." not must . Likely, it is not a good idea to draw that distinction unless the publication uses both the words "should" and "must" in obviously different meanings. It is possible for documents to use t...
by FactualFran
Mon Aug 28, 2017 1:45 pm
Forum: Personal Finance (Not Investing)
Topic: What to do when a parent's money runs out?
Replies: 218
Views: 31464

Re: What to do when a parent's money runs out?

One thing I will say is that I look at it that $1200/mo SS plus $1000 from you on top -- that is what I estimate as the bare minimum a person could survive on. (I'm talking without any other monthly bills due to debt.) That's $26,400 a year. I doubt there are folks on this forum that are able to li...
by FactualFran
Fri Aug 25, 2017 2:13 pm
Forum: Investing - Theory, News & General
Topic: Amazed by Vanguard Wellington's Performance
Replies: 40
Views: 6018

Re: Amazed by Vanguard Wellington's Performance

Here's an example of Wellington compared to 65/35 stock/bond index. In 2015, it looks like Wellington paid out around 6% in income. Any idea how when bond rates were so low then and high yield dividend stock were paying half that on average? I'm confused about Wellington's income. [Link here] In 20...
by FactualFran
Fri Aug 25, 2017 1:40 pm
Forum: Investing - Theory, News & General
Topic: Amazed by Vanguard Wellington's Performance
Replies: 40
Views: 6018

Re: Amazed by Vanguard Wellington's Performance

One thing I've noticed when backtesting Wellington on portfoliovisualizer.com is that the income is significantly higher than other similar funds and index allocations (e.g., 65% VTSMX and 35% VBMFX). If I run $100,000 from 1994-2017, the income from the fund in recent years is somewhere around 5-6...
by FactualFran
Thu Aug 24, 2017 5:26 pm
Forum: Investing - Help with Personal Investments
Topic: State taxes on Vanguard's Tax-Exempt Bond Index Fund
Replies: 8
Views: 691

Re: State taxes on Vanguard's Tax-Exempt Bond Index Fund

CA law says that if you own shares in a fund, then any dividends produced by that fund are 100% CA taxable unless at least 50% of the assets of the fund are bonds that produce interest that would be tax-exempt if held individually. NY and NJ and maybe a few other states have similar laws, most stat...
by FactualFran
Thu Aug 24, 2017 4:29 pm
Forum: Investing - Help with Personal Investments
Topic: State taxes on Vanguard's Tax-Exempt Bond Index Fund
Replies: 8
Views: 691

Re: State taxes on Vanguard's Tax-Exempt Bond Index Fund

After the end of the year, Vanguard provides a table of the portion of the tax-exempt income from each fund due to securities the fund had from each state. The information for 2016 is at http://www.vanguard.com/pdf/INBST_012017.pdf
by FactualFran
Thu Aug 24, 2017 1:39 pm
Forum: Investing - Help with Personal Investments
Topic: What to do with series EE savings bonds?
Replies: 28
Views: 2900

Re: What to do with series EE savings bonds?

Series EE Saving Bonds issued in 1998 had an initial maturity period of 17 years, not 20 years. The paper bonds were worth their face value in 2015. Since then they have been earning a market based rate. The most recently determined market based rate is 1.68%. The ones currently earning 1.07% will s...
by FactualFran
Wed Aug 23, 2017 1:28 pm
Forum: Personal Finance (Not Investing)
Topic: Quarterly Taxes - Best resources or just hire a CPA?
Replies: 11
Views: 681

Re: Quarterly Taxes - Best resources or just hire a CPA?

Aside from reviewing IRS pub 505 Chapter 2, what other resources do people use to help work on their Quarterly Taxes? Does everyone run through each worksheet each quarter to see how much they should pay or is there an easier method to getting this done? The main resources that I have used is IRS f...
by FactualFran
Tue Aug 22, 2017 4:34 pm
Forum: Investing - Help with Personal Investments
Topic: Are US S&P 500 Index funds speculative investments?
Replies: 63
Views: 4423

Re: Are US S&P 500 Index funds speculative investments?

Investing in a S&P 500 index fund means not speculating on valuations.
by FactualFran
Tue Aug 22, 2017 1:39 pm
Forum: Investing - Theory, News & General
Topic: XIRR - Non-reinvested dividends
Replies: 43
Views: 3947

Re: XIRR - Non-reinvested dividends

I don't make any assumption about a constant rate of return. I use the results of the XIRR spreadsheet function as is The XIRR function is bases on a constant rate of return. That's the way the classic discounted cash flow equations are based on. When you try to compare the XIRR constant average re...
by FactualFran
Mon Aug 21, 2017 3:58 pm
Forum: Investing - Theory, News & General
Topic: XIRR - Non-reinvested dividends
Replies: 43
Views: 3947

Re: XIRR - Non-reinvested dividends

This was the discussion that I was having with #cruncher. If you assume a constant rate of return then the XIRR spreadsheet returns the same value as the total return whether or not you reinvest dividends. But as #cruncher has demonstrated you allow the return to very during the period then the two...
by FactualFran
Mon Aug 21, 2017 3:39 pm
Forum: Forum Issues and Administration
Topic: Home Page Updated
Replies: 82
Views: 5867

Re: Home Page Updated

Please consider changing the "# Replies" column from being centered to right justified. Example, instead of the first few columns being like 163 p I own no international stocks. Can you guess why? ... 8 p Keep Home or Upgrade? have them be like 163 p I own no international stocks. Can you guess why?...
by FactualFran
Sat Aug 19, 2017 12:42 pm
Forum: Investing - Theory, News & General
Topic: XIRR - Non-reinvested dividends
Replies: 43
Views: 3947

Re: XIRR - Non-reinvested dividends

[#Cruncher's adjustment for leap days] looks like an ad hoc modification used only when leap years are involved to force the XIRR result to be a desired "true" value. Since my formula works for periods with or without leap years, it is not ad hoc . In some of my earlier posts I did make an ad hoc a...
by FactualFran
Sat Aug 19, 2017 12:16 pm
Forum: Investing - Help with Personal Investments
Topic: Recharacterizing invested Roth excess 2016 contribution questions
Replies: 3
Views: 290

Re: Recharacterizing invested Roth excess 2016 contribution questions

Likely, it should not have been necessary to open a traditional IRA ahead of doing the recharacterization. Establishing a traditional IRA to receive the recharacterization amount is a detail that could have be done by the broker when processing a recharacterization. You need to tell the broker that ...