Search found 22480 matches

by grabiner
Tue Mar 11, 2008 7:57 pm
Forum: Investing - Help with Personal Investments
Topic: Money Market Funds Not FDIC Insured...
Replies: 16
Views: 6324

Yes, but that doesn't protect you against the fund losing money. Thanks. Sure, I understand that. But if for whatever reason Fidelity went under -- whatever current money I had in there would be given back to me, right? The SIPC protects you against problems at Fidelity, but it doesn't protect you ...
by grabiner
Sun Mar 09, 2008 8:20 pm
Forum: Investing - Help with Personal Investments
Topic: Small vs. Large Tilt
Replies: 21
Views: 3867

Remember that the Morningstar definition of small, which is reflected in the X-ray analysis, is basicially CRSP 10 (10th decile by market cap). That is different from the MSCI/Vanguard, Extended Market, S&P 600, and Russell 2000 definitions. The Morningstar definition of small is the smallest 10% o...
by grabiner
Sat Mar 01, 2008 4:00 pm
Forum: Personal Finance (Not Investing)
Topic: Tax Loss Harvesting; Getting VG to upgrade to specific ID
Replies: 35
Views: 7688

Even when I'm retired, I hope to continue buying with regularity, with the proceeds of loss harvesting. That means the need to distinguish long and short term gains won't go away. Correct me if I'm wrong, as I understand it if you are selling at a LOSS does not matter when you bought it. If you are...
by grabiner
Sat Mar 01, 2008 3:45 pm
Forum: Investing - Help with Personal Investments
Topic: Yet another wash sale question....
Replies: 3
Views: 1047

Re: Yet another wash sale question....

I have substantial losses in Vg Insured LT tax exempt fund (who doesn't?) May I tax loss harvest by exchanging this fund for the Vg LT tax exempt fund on the same day? Or is the 'Insured' version of a very similar fund considered to be a 'substantially identical' purchase? Would I be falling foul o...
by grabiner
Sat Mar 01, 2008 3:41 pm
Forum: Investing - Help with Personal Investments
Topic: Tax Lost Harvesting
Replies: 4
Views: 1427

Re: Tax Lost Harvesting

My parents have approximately $200,000 invested in Vanguard's Total Stock Market Index in a taxable account. Their personal rate of return information for this account is: 1 yr (–2.7%), 3 yr (7.8%) and 5 yr (10.1%). Is "tax loss harvesting" an option for mutual funds? Is there a general rule as to ...
by grabiner
Sat Mar 01, 2008 3:32 pm
Forum: Investing - Help with Personal Investments
Topic: AA Help - TIAA-CREF, TSP, Vanguard
Replies: 10
Views: 3059

Re: AA Help - TIAA-CREF, TSP, Vanguard

2. I was paying off the home equity more aggressively (~13k /yr extra), but decided to split those extra funds to have more to invest in the taxable account (6k /yr to invest - already included in new annual contributions above). Would you recommend continuing this plan, go back to the original, or...
by grabiner
Fri Feb 29, 2008 11:45 pm
Forum: Investing - Help with Personal Investments
Topic: Help Choose Taxable Account Sources
Replies: 8
Views: 1604

Re: Help Choose Taxable Account Sources

I have a few special requirements for my taxable accounts. I am using the method I learned on here to siphon money from my IRA for emergency purposes. Thus the MMF will be in the IRA and I will have equity funds in my taxable account that I will sell, and then repurchase within the IRA using the IR...
by grabiner
Fri Feb 29, 2008 11:41 pm
Forum: Investing - Help with Personal Investments
Topic: OT: Credit Score
Replies: 10
Views: 2089

Re: OT: Credit Score

My personal experience with some Credit Cards is that they might raise your limit somewhat, but they might not raise it to what a person might consider an 'acceptable' new limit. For instance, Capital One has a rewards card. For about 5 years now, my card with them has been stuck at $1700. I've alw...
by grabiner
Fri Feb 29, 2008 11:32 pm
Forum: Investing - Help with Personal Investments
Topic: Reallocating: fast or slow?
Replies: 8
Views: 2397

Re: Reallocating: fast or slow?

BUT, given the state of the market & the fact that almost all of my funds have gone down a chunk over the past 3 months, I am wondering whether a major reallocation should be done gradually, by DCA perhaps, or should I do I quickly to reduce further risk? My plan is not done yet but my guess is tha...
by grabiner
Fri Feb 29, 2008 11:26 pm
Forum: Investing - Help with Personal Investments
Topic: Are my 401K fees too high?
Replies: 7
Views: 2689

Re: Are my 401K fees too high?

I work for the State of Tennessee. In addition to a pension with the Tennessee Consolidated Retirement System, I contribute 10% of my income to an employer-sponsored 401K with Great West. The State of TN matches up to $50 per month. All of my contributions are tax-deffered. I am wondering if I shou...
by grabiner
Fri Feb 29, 2008 11:12 pm
Forum: Investing - Help with Personal Investments
Topic: Generating Portfolio Income for Rebalancing
Replies: 7
Views: 1307

Re: Generating Portfolio Income for Rebalancing

Consider the Coffeehouse Portfolio because it is a nice middle of the road example: 10% LC VFINX (yielding) 1.9% 10% LV VIVAX, 2.8% 10% SC VTMSX, 0.9% 10% SV VISVX, 2.4% 10% INTL VFWIX, 2.5% (I think) 10% REIT VGSIX, 5.0% (total distr.) 40% Bond VFSUX, 4.4% , OR Muni VMLTX, 2.7% The sums of the inc...
by grabiner
Fri Feb 29, 2008 10:59 pm
Forum: Investing - Help with Personal Investments
Topic: Which loan should I pay off?
Replies: 10
Views: 2357

Having following the link, I am beginning to see why there is confusion. My loans are different than what is described there. In my loans--and by "loans", I mean the 2nd and 3rd--I only pay interest on the principal. In the case of the 3rd, the principal is $10,000, the rate is 3 percent, so every ...
by grabiner
Thu Feb 28, 2008 9:21 pm
Forum: Investing - Theory, News & General
Topic: Emerging Markets Fund Redemption Fee scares me!
Replies: 15
Views: 4696

I guess my biggest concern is that I wont know how much money I have without doing a calculation. My plans are to convert everything to a Roth when I quit my job and have that option, and I can look at the balance and know how much I Have. If it was a traditional IRA then it wouldnt matter since I ...
by grabiner
Thu Feb 28, 2008 9:10 pm
Forum: Investing - Help with Personal Investments
Topic: Upside-down
Replies: 15
Views: 3689

I have no idea where you live but would work on paying off the 2nd & 3rd asap. This has been on my mind for some time now so maybe I should ask. Just to clarify, both of these are simple interest loans. The 2nd is 7 percent. The 3rd is 3 percent. The 1st is 4.5, and is compound. Since the interest ...
by grabiner
Thu Feb 28, 2008 9:06 pm
Forum: Investing - Help with Personal Investments
Topic: Tax managed funds - how much better are they?
Replies: 25
Views: 6786

Redemption fee cost is tiny

Grabner/Greenberry: I didn't see the 1% cost of tax-loss harvesting (during the first 5 years) in your computations for Tax Managed Funds? Best wishes. Taylor I didn't incorporate it because the annualized cost is very small but variable. In addition, the fee goes back to investors; if the average ...
by grabiner
Thu Feb 28, 2008 8:41 pm
Forum: Investing - Help with Personal Investments
Topic: OT: Credit Score
Replies: 10
Views: 2089

Re: OT: Credit Score

I am 22 and a recent college grad. I recently checked my credit score and one company could not give me an accurate score because of a lack of credit history. The other gave me a C, with a 700 (I think). My only credit right now is two cards, both with a $1,000 spending limit. One I use rarely and ...
by grabiner
Thu Feb 28, 2008 8:36 pm
Forum: Investing - Help with Personal Investments
Topic: Wash Rule Question
Replies: 1
Views: 777

Re: Wash Rule Question

If I sell my position at Vanguard in a taxable account, say I sell $10000 worth of Vanguard Small Cap Value and harvest a $2000 loss. If I then logon to my Fidelity Account (let's say an IRA) and buy $10000 worth of the Vanguard Small Cap Value ETF Equivalent, will I be hit with the Wash Rule or do...
by grabiner
Thu Feb 28, 2008 8:34 pm
Forum: Investing - Help with Personal Investments
Topic: Advice needed on new 401k plan and updating portfolio
Replies: 4
Views: 1442

I have one further question about using the Fidelity Bond Index in the 401k. I read a book recently where the author advised to only DCA/periodic invest into stock funds rather than bonds. His advice was to only use the "old money" to hold the bonds rather than buy them slowly in a 401k. I did not ...
by grabiner
Wed Feb 27, 2008 10:46 pm
Forum: Investing - Theory, News & General
Topic: What is a resistance level?
Replies: 17
Views: 3797

Eye of the beholder

Gummy, is that chart real or hypothetical? I dunno, but here's a real one: http://stockcharts.com/school/data/media/chart_school/chart_analysis/support_and_resistance/suppresis-2lly.png This is a good illustration of the problem; patterns are in the eye of the beholder. The chart draws a nice, prec...
by grabiner
Wed Feb 27, 2008 10:35 pm
Forum: Investing - Theory, News & General
Topic: Emerging Markets Fund Redemption Fee scares me!
Replies: 15
Views: 4696

Re: Emerging Markets Fund Redemption Fee scares me!

VEIEX - 0.5% to buy doesnt scare me, but 0.5% to sell terrifies me. What if I invest $10k now and get the same crazy 20 to 30% returns for the next 30 or 40 years and then have to pay 0.5% of the total $1,000,000 I sell when I retire? The purchase and redemption fees have the same effect; both redu...
by grabiner
Wed Feb 27, 2008 10:22 pm
Forum: Investing - Help with Personal Investments
Topic: Tax managed funds - how much better are they?
Replies: 25
Views: 6786

Re: Tax-efficient funds?

I really like the reasoning here, can someone explain then why and under what circumstances people choose to use the tax managed funds? Is there a table listed somewhere that explains just how much more tax efficient they are and how that translates to real dollars to someone in the 33% - 35% tax b...
by grabiner
Tue Feb 26, 2008 11:45 pm
Forum: Investing - Theory, News & General
Topic: NEWS >>> VANGUARD Cuts Fees on 5 ETFs
Replies: 7
Views: 1953

Mutual fund cuts will probably be reported soon

Example ER comparison of ETF vs Mutual Fund: Smallcap Value VBR: 0.11% ... VISVX: 0.22% Large Value VTV: 0.10% ... VIVAX: 0.20% I would expect that the mutual fund will have the same reduction, since its expenses were reduced by just as much, but they report at different times. That happened with T...
by grabiner
Tue Feb 26, 2008 11:39 pm
Forum: Investing - Help with Personal Investments
Topic: Oh my, so which Int'l fund is BEST for a TAXABLE account?
Replies: 13
Views: 3581

Redemption fee is FIFO

Question about the 1% redemption fee: Does Vanguard start counting time of 5years from the last monthly investment? The redemption fee on the tax-managed funds is calculated on a first-in-first-out basis, regardless of the accounting method you use to report your sales to the IRS (which Vanguard do...
by grabiner
Tue Feb 26, 2008 11:29 pm
Forum: Investing - Help with Personal Investments
Topic: Help - VTI or FSTVX (Fedelity Spartan TM Advantage Class)
Replies: 7
Views: 5104

Another consideration is tax loss harvesting. If you are buying a fund, the fund has some sort of frequent trading policy, which makes it hard to sell soon after a purchase and/or get back into the same fund. ETFs don't care how often you trade. (Brokers are actually happy if you trade often. :-) )...
by grabiner
Tue Feb 26, 2008 11:26 pm
Forum: Investing - Help with Personal Investments
Topic: Sell my nice car to add to investment portfolio?
Replies: 15
Views: 3303

Don't swap cars because transaction cost is too high

1. I have a bad habit of buying cars often, before on my parents money, but now on my money. I'm over this habit and I want to keep a car for 5-10 years now. In the past I've had a '02 honda accord ex v6, '05 H2 hummer, '06 Infiniti G35 coupe, and now my current vehicle a '07 Subaru Impreza WRX (be...
by grabiner
Sun Feb 24, 2008 11:04 pm
Forum: Investing - Help with Personal Investments
Topic: $1MM Lump Sum ETF AA: Comments on BogleH Ferri & Swedroe
Replies: 37
Views: 8039

Re: Cash

Reference is made to your "first Plan": If I relocate, and let's assume there's no disposable money to invest in the taxable account: My concern is the "costs" of re-balancing in taxable (ie, cap gains, 5yr holding period with Vanguard's TM funds) The capital-gains cost of rebalancing is almost ind...
by grabiner
Sat Feb 23, 2008 8:41 pm
Forum: Investing - Help with Personal Investments
Topic: What Vanguard funds do you have in your taxable account?
Replies: 35
Views: 9434

Re: What Vanguard funds do you have in your taxable account?

I am planning to start a taxable account at Vanguard. What VG funds do you have in your taxable account besides bonds/money market? I am thinking of VG Short TermTax Exempt (VWSTX) (as a discretionary emergency fund) and VG CA Tax free M/M (as a 6 month emergency fund) but I am not so sure about th...
by grabiner
Sat Feb 23, 2008 8:30 pm
Forum: Investing - Theory, News & General
Topic: FailSafe Margin Strategy?
Replies: 48
Views: 7169

Re: Margin loan is a negative bond

If you hold a bond to maturity, you don't care what happens to the price along the way. A bond with a 4% yield might return 8% next year, but if it does, this is because the yield fell and you will earn less than 4% in future years. And that's how my comparison works. If you have ten years left on ...
by grabiner
Sat Feb 23, 2008 8:06 pm
Forum: Investing - Theory, News & General
Topic: Health Savings Accounts
Replies: 60
Views: 16880

1) I get "free" normal health insurance from my job that is probably worth about $5k / year. If I decline health insurance, I can get $100/month instead. Thats a pretty aweful deal for me. The only way I can be eligible for an HSA if I dont have normal regular insurance, and declining that, is goin...
by grabiner
Sat Feb 23, 2008 7:56 pm
Forum: Investing - Help with Personal Investments
Topic: Help me understand why I need bonds
Replies: 55
Views: 10708

"How much stock did you have in 2000-2002, and what did you do then? How about in January of this year? If you had 80% or more stock, so that you lost 1/4 of your portfolio in the bear market and didn't panic, then you may have the risk tolerance for 100% stock. " I only started investing a bit ove...
by grabiner
Sat Feb 23, 2008 7:50 pm
Forum: Investing - Help with Personal Investments
Topic: Advice requested: AA, and what to do with mut funds w/gains
Replies: 21
Views: 4483

I've never bought or held an ETF. Advantage seems they can be held at almost any broker, which would keep me from getting stuck like I feel I am now with the Etrade funds. disadvantage are repeat investments, like my weekly simpleira buys, look like they will incur 8 bucks a trade no matter what br...
by grabiner
Sat Feb 23, 2008 3:55 pm
Forum: Investing - Theory, News & General
Topic: FailSafe Margin Strategy?
Replies: 48
Views: 7169

Re: Margin loan is a negative bond

The logic is similar. If you have a higher after-tax return on a mortgage paydown than on bonds, you will come out ahead paying down the mortgage. If you invest only in a tax-deferred account, you should compare the after-tax return on the mortgage to the pre-tax return on long-term Treasury bonds;...
by grabiner
Sat Feb 23, 2008 3:36 pm
Forum: Investing - Help with Personal Investments
Topic: Roth vs. 401K - advise for type of asset to place where?
Replies: 5
Views: 1396

Re: Roth vs. 401K - advise for type of asset to place where?

I did make a small attempt to search if this is an old topic, but failed. Are there advantages in directing certain holdings into a Roth IRA versus other tax-advantaged (read tax deferred) accounts? For example, is it better to direct equities into a Roth and bonds into 401k with the observation th...
by grabiner
Sat Feb 23, 2008 3:31 pm
Forum: Investing - Help with Personal Investments
Topic: Help me understand why I need bonds
Replies: 55
Views: 10708

Are you sure of your risk tolerance?

I'm familiar with the recommendations to hold a certain part of one's portfolio in bonds, so as to better ride out bear markets. I'm 32 years old, and have none of my portfolio in bonds, but by most suggested allocations, I should be anywhere between 10 - 40 percent in bonds right now. I still don'...
by grabiner
Sat Feb 23, 2008 3:18 pm
Forum: Investing - Help with Personal Investments
Topic: $1MM Lump Sum ETF AA: Comments on BogleH Ferri & Swedroe
Replies: 37
Views: 8039

Re: Cash

- If I relocate to Metro DC, I'll probably be forced to get a home (I made the mistake of owning three other homes and my wife kinda forgot what apartment living used to be like. Plus I've got 1.5 kids, dog, ya know what I'm saying. Remember, I want to remain "Married filing jointly." If you have k...
by grabiner
Sat Feb 23, 2008 3:11 pm
Forum: Investing - Help with Personal Investments
Topic: $1MM Lump Sum ETF AA: Comments on BogleH Ferri & Swedroe
Replies: 37
Views: 8039

Re: $1MM Lump Sum ETF AA: Comments on BogleH Ferri & Swe

Debt: Mortgage: $250,000, at 6% Since you expect to sell your house in one year and will pay off the mortgage then, paying it off now is probably a good use of your taxable funds. You have a 6% pre-tax return on a one-year investment, with no risk. In your tax bracket, that's 4.3% after tax, which ...
by grabiner
Fri Feb 22, 2008 9:24 pm
Forum: Investing - Help with Personal Investments
Topic: Advice requested: AA, and what to do with mut funds w/gains
Replies: 21
Views: 4483

Re: Advice requested: AA, and what to do with mut funds w/ga

1) I hate etrade with a passion. I have already sold off all cost effective lots of ETSPX/ETINX but still have $24k and $11k in gains. I'd like to figure out how to calculate how far behind I'd be in 20-30 years if I sell those funds now, paying out ~$5300 in capital gains tax @ 15%, and reinvestin...
by grabiner
Fri Feb 22, 2008 12:05 am
Forum: Investing - Theory, News & General
Topic: FailSafe Margin Strategy?
Replies: 48
Views: 7169

Re: Margin loan is a negative bond

But there is no point in both lending and borrowing money unless you get a higher return on the money you lend than you pay on the money you owe. Actually, I would invest the funds into the same allocation as the rest of my portfolio and so it would not be all in large stocks. My allocation is: 25%...
by grabiner
Thu Feb 21, 2008 11:50 pm
Forum: Investing - Help with Personal Investments
Topic: How to deal with Vanguard's $3k fund buy-in?
Replies: 20
Views: 5010

Re: How to deal with Vanguard's $3k fund buy-in?

I've been browsing through this forum for the last couple of weeks and am impressed with the quality of help provided, so I thought I'd ask a question of my own. As some background, here is some relevant info for my question: Total Portfolio: $10k Roth IRA: $7k; 100% Vanguard S&P 500 Index 401(k): ...
by grabiner
Wed Feb 20, 2008 8:56 pm
Forum: Investing - Theory, News & General
Topic: FailSafe Margin Strategy?
Replies: 48
Views: 7169

Margin loan is a negative bond

The effect of a margin loan on your portfolio is to increase your stock allocation. If your portfolio is $200K and you have $250K in stock and a $50K margin loan, you are effectively 125% stock. Thus it may make sense to use a margin loan only if you want an allocation of over 100% stock. With that ...
by grabiner
Tue Feb 19, 2008 11:21 pm
Forum: Investing - Help with Personal Investments
Topic: AA/tax efficient investing question
Replies: 9
Views: 2374

My 401k actually has Russell Completeness Index (small and mid caps), and not the Russell 2000. If I have 15% in this fund, will I have too much weight on mid-caps and less weight on small caps than I intend (or should I not worry about this)? You will have more weight on mid-caps; I would assume t...
by grabiner
Tue Feb 19, 2008 11:17 pm
Forum: Investing - Help with Personal Investments
Topic: Inflation by the numbers - general rule of thumb
Replies: 7
Views: 1797

Re: Inflation by the numbers - general rule of thumb

Is my thinking correct? I want a general rules for these items. Many people assume inflation will run at 3% over the long haul. - Q 1: is that a realistic number? Is it safe enough? What do you use? Assuming some $ will come from tax deferred (1/2) and some taxable accounts (1/2) (25% tax bracket) ...
by grabiner
Tue Feb 19, 2008 11:06 pm
Forum: Investing - Theory, News & General
Topic: Taxable Account
Replies: 11
Views: 2427

Re: Taxable Account

I noticed that everyone says in a taxable account you should have Total Stock Market Index & FTSE ex USA. Why not Vanguard Mid-Cap Index or Small-Cap Index so you can have more exposure than just the broader market. Total Stock Market already includes some mid-caps and small-caps, so it works fine ...
by grabiner
Thu Feb 14, 2008 9:45 pm
Forum: Investing - Help with Personal Investments
Topic: Keep IRA or sell
Replies: 9
Views: 1790

Re: IRA

I just checked & it is a 5% deferred load charge. Still sell? Yes, because she can't get out of paying that load by keeping the fund. Presumably, she has B shares, which usually charge 1% a year in 12b(1) fees. Thus, if she waits five years to sell in order for the deferred load to expire, she will...
by grabiner
Thu Feb 14, 2008 9:30 pm
Forum: Investing - Help with Personal Investments
Topic: International small caps
Replies: 17
Views: 3344

Just a reminder that if VINEX is in a taxable account, the significant capital gains that it distributes each year likely make the after-tax risk-adjusted return worse over 30 years than just holding FTSE all-world ex-US. This is the advantage of the international small-cap ETFs. DLS is likely to h...
by grabiner
Thu Feb 14, 2008 9:23 pm
Forum: Investing - Help with Personal Investments
Topic: Seeking Alpha - Active vs. Passive Index Investing
Replies: 7
Views: 1589

Do I understand the concept of price weighting to suggest that the NAV of a stock determines the clout it carries in the DJIA? If this is the case, what determines the NAV of a particular stock? This seems ludicrous and I am glad that indexes use market cap to weight companies. This makes more sens...
by grabiner
Wed Feb 13, 2008 10:22 pm
Forum: Investing - Theory, News & General
Topic: Taxable accounts adjustment for AA -- can it be that high?
Replies: 37
Views: 7167

The effective tax rate on each account is based on how it relates to these numbers. If you will retire in a 28% tax bracket, and not right at the bottom of the bracket, then a loss of $1000 in your traditional IRA will cost you $7200 in retirement spending, so the effective tax rate is 28%. You may...
by grabiner
Wed Feb 13, 2008 10:16 pm
Forum: Investing - Help with Personal Investments
Topic: Is VTSAX now a better deal than VTI?
Replies: 26
Views: 5320

Ah, the ol' "miss the best days in the market" routine. Studies show that if you "miss the worst days in the market" that you do even better than being fully invested all the time. So I could argue that by buying the next day, sometimes you would hit the drop just right. :) I never liked the "miss ...
by grabiner
Wed Feb 13, 2008 10:07 pm
Forum: Investing - Help with Personal Investments
Topic: coolant replacement
Replies: 4
Views: 1160

Re: Optimum Fund Overlap?

This is probably a total newbie question but I'll let is loose anyway. Right now my portfolio is super simple: Taxable - Total Stock Market + Prime MM 401k - Total International Roth - Total Stock Market All 3 of these accounts are getting cash put into them automatically every month but they are a...
by grabiner
Wed Feb 13, 2008 9:54 pm
Forum: Investing - Help with Personal Investments
Topic: Tax Exempt Funds for low tax bracket investors
Replies: 1
Views: 1660

Re: Tax Exempt Funds for low tax bracket investors

I am in a really low tax bracket - not sure what one exactly this year but my income will likely gross $25 to $40k with a 401k contribution of $15.5k. I just sold $2500 of long term capital gains and with the rules for 2008 if I stay in a low tax bracket, I can pay 0% cap gains tax on that, but the...