Search found 22107 matches

by grabiner
Sun Nov 04, 2007 10:10 pm
Forum: Investing - Help with Personal Investments
Topic: Employee stock doing terrible!!!
Replies: 17
Views: 3404

Re: Employee stock doing terrible!!!

Hi All, I had purchased stock for Key Corp (Key Bank) and have now lost over 16% of my investment. I must also note that I have to wait until Febuary of next year to sell my stock or I would lose 10% more because it is restricted stock. What should I do? Take a 26% hit and cash out or wait? Unless ...
by grabiner
Sun Nov 04, 2007 10:06 pm
Forum: Investing - Help with Personal Investments
Topic: Preliminary Portfolio>>Help is Appreciated!!!!!
Replies: 10
Views: 2088

Re: PRELIMINARY PORTFOLIO>>HELP IS APPRECIATED!!!!!

STOCKS (All in Taxable accounts): US Large: Vanguard Total Stock Market Index (49% of stocks) ING Global Equity Dividend and Premium (IGD) (expense ratio 1.01) (4%of stocks) Legg Mason Large Cap Growth A (SBLGX) (ER 1.09) (3% of stocks) Calvert Large Cap Growth C (CLGCX) (ER2.27) (1% of stocks) US ...
by grabiner
Sun Nov 04, 2007 9:48 pm
Forum: Investing - Help with Personal Investments
Topic: Help with taxable account
Replies: 12
Views: 2685

Since you are already retired, you will be withdrawing from your funds and paying some taxes anyway, so it may not be worth paying a large capital gain now to get out of STAR or Wellesley unless you have many years of retirement left or expect to leave a lot of stocks to your heirs (and thus will ge...
by grabiner
Fri Nov 02, 2007 8:46 pm
Forum: Investing - Help with Personal Investments
Topic: ROTH rationale
Replies: 10
Views: 2604

Put the least tax efficient funds in your qualified accounts and the most tax efficient funds in your taxable accounts. VISVX is an index fund. Index funds are typically very tax efficient. However, Small-Cap Value Index may not be tax-efficient, because small-cap and value stocks have to be sold w...
by grabiner
Fri Nov 02, 2007 8:35 pm
Forum: Investing - Help with Personal Investments
Topic: Need Help
Replies: 17
Views: 2684

I am only seeking 60K per year from the entire 1.5M. $500,000 in taxable account and $1M in IRA. Phrase the question like this. My brother and I recently awoke from a coma, and have been un-employed for the last 45 years. We are 65 years old, and want to retire next year. I have $1M in an inherited...
by grabiner
Fri Nov 02, 2007 8:17 pm
Forum: Investing - Help with Personal Investments
Topic: Newbie question on Total International
Replies: 12
Views: 2475

Re: It's close

The cost of switching would be 4.5%, since you pay 15% taxes on capital gains. The value of the foreign tax credit is about 0.16% a year, so you would make up 4% if that is the only difference between the funds and you hold the fund for 25 years. If you are 25 years from retirement, you will hold t...
by grabiner
Fri Nov 02, 2007 8:07 pm
Forum: Investing - Help with Personal Investments
Topic: We just did a 401K analysis at work
Replies: 13
Views: 2649

Re: We just did a 401K analysis at work

There are bunch of guys that had gains of 40% and 50% with there hand picked funds. I asked one fellow how he did it and he said that he looked at the history of the funds and picked the ones that had the best gains on a three month , one year, five year, ten year, and lifetime history and made his...
by grabiner
Fri Nov 02, 2007 7:50 pm
Forum: Investing - Help with Personal Investments
Topic: Taxes affect your "net" AA?
Replies: 32
Views: 5694

Re: Risk Tolerance and other things.

One important thing to consider is that pre-tax asset allocation is what's important for our risk-tolerance. In general, we should expect our portfolio to have a percentage decline in a bad bear market equal to approximately half our stock allocation-- before tax adjustment. This may be true for yo...
by grabiner
Thu Nov 01, 2007 7:52 pm
Forum: Investing - Help with Personal Investments
Topic: HSA Advice
Replies: 25
Views: 6863

I have declined on HSAs for several other reasons. 1) Small part of my total portfolio, and I can tax loss harvest my equity investments when they are invested in a taxable account instead. 2) Very poor coverage of the HDHP plan. Provider choices are severely limited and there are many more exclusi...
by grabiner
Thu Nov 01, 2007 7:42 pm
Forum: Investing - Help with Personal Investments
Topic: Newbie question on Total International
Replies: 12
Views: 2475

It's close

I have a legacy holding of Vanguard Total International Stock Index Fund (VGTSX) in my taxable account. This holding has substantial long-term capital gains of about 30% of total position value built up. Am trying to decide whether or not to sell VGTSX and buy VEU instead (this prompted by my shock...
by grabiner
Thu Nov 01, 2007 7:34 pm
Forum: Investing - Help with Personal Investments
Topic: Where to invest my emergency fund?
Replies: 16
Views: 4628

Treasury Money Market

Hi All, I am recently married and now trying to figure out where to put the emergency fund money. Thanks to my wife I am now in the 15% Fed Tax-bracket. I am still invest in the VG NY Tax-Exempt MMF and trying to figure out where to put the cash in case of emergencies, while earning a better return...
by grabiner
Thu Nov 01, 2007 7:29 pm
Forum: Investing - Help with Personal Investments
Topic: Paying capital gains taxes to switch to index funds
Replies: 39
Views: 7635

So $10,000 in long-term capital gains at 15% is a $1,500 tax hit upon selling. Plus all the returns that that $1,500 would get me over the next 25 years. So, the 24,500 (or so) would be reinvested in VTSMX for the next 30 years, at 0.4% lower expense ratio and in a much more tax-efficient manner. H...
by grabiner
Thu Nov 01, 2007 7:16 pm
Forum: Investing - Help with Personal Investments
Topic: Beginner Question - TR Fund
Replies: 5
Views: 1443

Re: Beginner Question - TR Fund

Is there any reason not to have a Target Retirement Fund in a Taxable account if I have already maxed out my Tax Exempt accounts? Yes. If you have both taxable and tax-exempt accounts, you want the investments which lose the least to taxes to be in the taxable account, which usually means stock ind...
by grabiner
Thu Nov 01, 2007 7:13 pm
Forum: Investing - Help with Personal Investments
Topic: Cost Basis
Replies: 3
Views: 1262

Adjust for split

Below is scenario: Individual company stock purchased as listed below: Lot A 50 shrs @ $19 dated 1-1-92 Lot B 50 shrs @ $20 dated 6-30-92 Lot C 100 shrs @ $22 dated 1-1-93 Lot D 100 shrs @ $21 dated 6-30-93 Lot E 25 shrs @ $24 dated 1-1-94 Total shrs 325 shrs July 27 1999 - 2 for 1 split price (aft...
by grabiner
Wed Oct 31, 2007 9:43 pm
Forum: Investing - Help with Personal Investments
Topic: Paying capital gains taxes to switch to index funds
Replies: 39
Views: 7635

Thanks everyone for your replies. I think I'll do it, I can't see too much of a reason not to in my case. Is there a succinct way of telling if this is worth it? or how many years it would take me to recoup the $3000 in capital gains taxes I'd have to pay upon selling? Online calculators have faile...
by grabiner
Wed Oct 31, 2007 9:25 pm
Forum: Investing - Theory, News & General
Topic: Tax-managed small cap VS. Extended Market Index
Replies: 6
Views: 2278

Re: Tax-managed small cap VS. Extended Market Index

I hold the 500 Index fund and the Tax-Managed Small Cap fund in a taxable account. I originally chose the tax-managed fund because I thought it was necessary in a taxable account. In fact, I am in a near-zero tax bracket (working overseas) so taxes are not as big an issue as I thought they would be...
by grabiner
Wed Oct 31, 2007 9:20 pm
Forum: Investing - Help with Personal Investments
Topic: Selling mutual funds before dividend date?
Replies: 3
Views: 7996

Re: Selling mutual funds before dividend date?

I was listening to Clark Howard the other day and he told a caller to make sure that he sells his mutual funds (in his taxable account) just before the dividend date instead of after. he was planning on selling them anyway but why before? Howard mentioned that it would prevent a bigger tax hit. How...
by grabiner
Wed Oct 31, 2007 9:13 pm
Forum: Investing - Help with Personal Investments
Topic: HSA Plan fund selections
Replies: 3
Views: 1287

I plan on never taking the money out and have directed estate/spouse to pay back all accumulated expensed once I die or we both take a dirtnap. the idea was to just pay my medical expenses up to deductible limit of the HSA but not reimburse myself to allow the future value of the HSA to grow In tha...
by grabiner
Wed Oct 31, 2007 9:09 pm
Forum: Investing - Help with Personal Investments
Topic: REIT Investments Get Better Tax Treatment
Replies: 20
Views: 5691

Re: REIT Investments Get Better Tax Treatment

Investments in REITs Get Better Overall Tax Treatment than Investments in Corporations ...REITs have generally less attractive tax characteristics. (From: http://www.diehards.org/forum/viewtopic.php?t=7517&sid=67d81f3b9ecdca6909fbe10d7595cb36 ) REIT dividends (paid to individuals) are (federally) t...
by grabiner
Wed Oct 31, 2007 9:01 pm
Forum: Investing - Theory, News & General
Topic: Managed Funds Beat the Index Funds
Replies: 27
Views: 6478

Re: Managed Funds Beat the Index Funds

Our Benefits Manager presented the following chart to prove that the managed funds beat the index funds (even after expenses). What am I missing? What you are missing is the word "the". Some managed funds beat the index funds over the last ten years, and your benefits manager chose to recommend the...
by grabiner
Wed Oct 31, 2007 8:49 pm
Forum: Investing - Help with Personal Investments
Topic: What's YOUR portfolio
Replies: 77
Views: 23610

Not necessarily a good idea

Most posters seeking advice on this forum are new to investing or not sure of their risk tolerance; most posters giving advice are experienced investors. For example, I never recommend to posters seeking advice that they use a portfolio similar to mine; I have one of the riskiest portfolios discusse...
by grabiner
Wed Oct 31, 2007 8:29 pm
Forum: Investing - Theory, News & General
Topic: Brinker's Comments on Rangel AMT Tax Bill?
Replies: 29
Views: 8847

Alex: This chart from the Brookings Institute is misleading. It counts payroll taxes as the total payroll tax payment. Most lower income people do not pay the employers share of the payroll tax. The Brookings chart effectively doubles the actual payroll tax paid by lower income individuals. The Bro...
by grabiner
Wed Oct 31, 2007 8:17 pm
Forum: Investing - Help with Personal Investments
Topic: College / University Retirees: Stay at TIAA-CREF?
Replies: 10
Views: 3225

Do you need the funds?

You should keep your TIAA-CREF account if it holds a fund which you cannot get in your IRA. In particular, you have access to the TIAA real estate account, which holds real estate directly and is thus not subject to stock-market risks. This may be the best way to hold real estate if you want a separ...
by grabiner
Wed Oct 31, 2007 8:11 pm
Forum: Investing - Theory, News & General
Topic: Vanguard all equity portfolio
Replies: 44
Views: 10759

Re: Vanguard all equity portfolio

It seems like following Tax managed won't offer any benefit for an IRA a/c, right?: VANGUARD TAX MANAGED EQUITY - BUY-AND-HOLD ($50,000 minimum) 12.5% Vanguard Tax Managed Growth (VTGIX) LCB 12.5% Vanguard Value Index (VIVAX) LCV 12.5% Vanguard Tax-Managed Small Cap Index (VTMSX) SCB 12.5% Vanguard...
by grabiner
Wed Oct 31, 2007 8:00 pm
Forum: Investing - Help with Personal Investments
Topic: Paying capital gains taxes to switch to index funds
Replies: 39
Views: 7635

Actually, the case for switching is even stronger

One Scenario: Actively managed fund of market value $10,000 with 100% gain. Therefore, I would have to pay $750 in taxes at a 15% tax rate if it were sold. Assuming the active fund and the index fund have the same pretax expense, and the actively managed fund has a 0.7% higher expense ratio, and ig...
by grabiner
Tue Oct 30, 2007 10:06 pm
Forum: Investing - Theory, News & General
Topic: Vanguard international funds
Replies: 4
Views: 2231

I have a related question about international funds in taxable accounts. I understand the general benefits of the FTSE fund that you folks have described vs. investing in Total International, but why invest in FTSE over Tax Managed International? I see that TMI has a 1% fee for shares held less tha...
by grabiner
Tue Oct 30, 2007 9:54 pm
Forum: Investing - Help with Personal Investments
Topic: How will you contribute to your 2008 Roth IRA?
Replies: 53
Views: 14760

My dividends help make the contribution

I have a large taxable account, and all my dividends go to my money-market account. Since two of my three taxable funds (Tax-Managed International and Emerging Markets Index) pay all their dividends in December, I'll have a larger money-market balance in December than I do now, and come January, a f...
by grabiner
Tue Oct 30, 2007 9:47 pm
Forum: Investing - Help with Personal Investments
Topic: Is this a Bona Fide Boglehead Portfolio?
Replies: 23
Views: 5873

Re: Is this a Bona Fide Boglehead Portfolio?

3.) Specific questions: • Is 10% (14% of equities) too high a REIT allocation? • Is the diversification of international bonds worth the cost? Not only is the expense ratio high, but it takes up space in the ROTH account, where I’d rather hold the emerging markets fund. • Is the emerging markets ti...
by grabiner
Tue Oct 30, 2007 9:37 pm
Forum: Investing - Theory, News & General
Topic: Taylor, Mel,Michael, Larry Tax-Loss Harvesting??
Replies: 14
Views: 2569

Specific identification

Brandon, It's actually easier to tax-loss harvest index funds because it is easy to find a suitable replacement. Sell VG Total Market and buy Fidelity Spartan. If it still goes lower after 30 days switch back to VG. However, this works only during the first year or 2 of your investing lifetime. Usu...
by grabiner
Tue Oct 30, 2007 9:28 pm
Forum: Investing - Help with Personal Investments
Topic: index portfolio
Replies: 4
Views: 1157

Re: index portfolio

I am trying to help my son benchmark his portfolio.He has some money currently in a checking account, which is for his children (about 2-5 yrs old currently).I am a believer in the Ben Stein recommended portfolio of 25% Vangaurd total stock market fund,25% Vanguard International Index fund,25% Vang...
by grabiner
Mon Oct 29, 2007 10:56 pm
Forum: Investing - Theory, News & General
Topic: Russell 3000 Index
Replies: 8
Views: 2067

The missing microcaps don't have much effect on returns, since they are such a small part of your portfolio. If microcaps outperform or underperform the rest of the market by 10% (and that isn't common), then a total-market index will outperform or underperform the Russell 3000 by 0.2%. Actually th...
by grabiner
Mon Oct 29, 2007 10:47 pm
Forum: Investing - Help with Personal Investments
Topic: Is there any point in VTRIX in passive portfolio?
Replies: 22
Views: 6241

Europe Index is not really a value fund

Although not as diversified, Vanguard's European index, VEURX, is large cap value. The ETF flavor, VGK, has an expense ratio of .18%. Best, Europe Index is a value fund only by the M* definition. By definition, it has the same price/earnings ratio, price/book ratio, etc., as the average large-cap s...
by grabiner
Mon Oct 29, 2007 10:06 pm
Forum: Investing - Theory, News & General
Topic: Poll: Advice for AVERAGE Investors
Replies: 25
Views: 6158

I haven't looked at Vanguard life-cycle funds, but there is probably a premium to be paid for that convenience. It's worth it to some people, but not for others. edit-- Wow, the expense ratios for the Vanguard life-cycle funds is pretty good (~.21% -- much better than the funds available in my reti...
by grabiner
Sun Oct 28, 2007 7:54 pm
Forum: Investing - Theory, News & General
Topic: Russell 3000 Index
Replies: 8
Views: 2067

If the Russell 3000 represents 98% of the US Mkt, what makes up the missing 2%? Probably microcaps since they represent less than 3% of the U.S. equity market. That's why it is better to use a broader index like the Vanguard Total Market. It represents 99.5% of the total capitalization of the U.S. ...
by grabiner
Sun Oct 28, 2007 7:22 pm
Forum: Investing - Theory, News & General
Topic: From 10/2007: Poll: Staying the Course
Replies: 18
Views: 3722

What did you do in 2000-2002?

A good way to check the reactions of posters to a potential market decline is to see what they actually did in the last real market decline. Most mutual funds lost about a third of their value in the 2000-2002 Internet bubble. How many investors rebalanced in 2002 so that they held as much stock as ...
by grabiner
Sat Oct 27, 2007 4:18 pm
Forum: Investing - Theory, News & General
Topic: How do fees work?
Replies: 16
Views: 3354

So if your making larger sum purchases every month of mutual funds which you intend to hold for decades, wouldnt it be by FAR better to purchase ETF's where you pay a small fee of less then $10 and the rest of the gains are all yours? If you are purchasing every month, you would be better off with ...
by grabiner
Sat Oct 27, 2007 4:03 pm
Forum: Investing - Help with Personal Investments
Topic: What do you do with distributions in taxable stock funds?
Replies: 7
Views: 1739

grabiner, In my taxable account, I don't pay purchase fees or redemption fees at Vanguard for mutual funds. So what is the difference if I reinvest the distributions or have them transferred to a MMF? Don't I pay the same tax on the distributions in either case? :roll: You pay the same tax, but if ...
by grabiner
Sat Oct 27, 2007 3:41 pm
Forum: Investing - Theory, News & General
Topic: American Funds v. Indexes
Replies: 13
Views: 3424

Fiduciary Scores (TM) comments

Matt wrote: Taylor Larimore wrote: Fiduciary Analytics has rather extensive data comparing various fund families. As of September 30, 2006, out of 217 fund families, they ranked Vanguard # 6 and American # 20. It looks to me like the analysis is pretty much asking "how much do you look like an inde...
by grabiner
Fri Oct 26, 2007 11:21 pm
Forum: Investing - Help with Personal Investments
Topic: Tax Efficiency for Bonds vs Equities
Replies: 9
Views: 2256

I'm in the same situation (outside the US so no US wage income). I hold the Intermediate and Short Term bond indexes in a taxable account because I'm not eligible for a tax-deferred account. I sometimes wonder at what point it might be better to switch to a tax-exempt fund. Compare the after-tax yi...
by grabiner
Fri Oct 26, 2007 11:12 pm
Forum: Investing - Theory, News & General
Topic: quick question about Vanguard minimum investment amounts
Replies: 10
Views: 2877

No I meant I am not sure how I will allocate my money within the 401k once I also open the Roth IRA, since it seems you should consider all of your accounts as a single portfolio. I'm saying that if my Roth IRA holds a target retirement fund, then it will already be pretty diversified, so I'm not s...
by grabiner
Fri Oct 26, 2007 11:08 pm
Forum: Investing - Theory, News & General
Topic: How do fees work?
Replies: 16
Views: 3354

Re: How do fee's work?

Say I got $1,000 in a fund. Say a year goes by and it becomes $1,100 a gain of 10%. Say fee is 1%. How much gets taken out? 1% of the profits? of my total? A purchase fee is taken out when you buy; you would invest $1000 and your balance would be $990, so you would have $1089 after one year. A rede...
by grabiner
Fri Oct 26, 2007 11:04 pm
Forum: Investing - Help with Personal Investments
Topic: Need morale support please!!
Replies: 64
Views: 14976

Over $1 million and he had the investor in Class C funds? Wow. In fact, that's a good indication that the broker has no interest in making money for you. The load on A shares drops considerably on larger accounts, so if you are going to buy shares for a large account, you should buy A shares rather...
by grabiner
Fri Oct 26, 2007 10:52 pm
Forum: Investing - Help with Personal Investments
Topic: What do you do with distributions in taxable stock funds?
Replies: 7
Views: 1739

What do you do with distributions in taxable stock funds?

I thought about this issue because I just changed my last taxable fund, Emerging Markets Index, to direct dividends to my money-market account. For several years, I kept reinvesting dividends in order to avoid the purchase fee, because I expected to reinvest the money anyway. However, my next transa...
by grabiner
Fri Oct 26, 2007 9:05 pm
Forum: Investing - Theory, News & General
Topic: quick question about Vanguard minimum investment amounts
Replies: 10
Views: 2877

Re: quick question about Vanguard minimum investment amounts

If that is the case, then how is one supposed to properly diversify when you can only select one fund? It seems a target retirement fund would be the logical choice, but wouldn't you eventually want to sell that off and split your investment into multiple funds once your account balance is high eno...
by grabiner
Thu Oct 25, 2007 9:42 pm
Forum: Investing - Help with Personal Investments
Topic: Tax Efficiency for Bonds vs Equities
Replies: 9
Views: 2256

Re: Tax Efficiency for Bonds vs Equities

Am I correct in thinking that the reason people advocate putting bonds in tax-advantaged accounts is because the interest payments will be taxed at the person's marginal income tax rate, while the CG rate is 15%, so for anyone above the 15% bracket, it makes more sense to hold equities in a taxable...
by grabiner
Thu Oct 25, 2007 9:31 pm
Forum: Investing - Help with Personal Investments
Topic: Mortgage as part of overall financial plan
Replies: 16
Views: 3887

Re: LH2004

ARMs really do cost less, on average, at the cost of somewhat higher risk; an ARM with a moderate portfolio may well have a higher risk-adjusted net worth improvement expectation than a lower-risk, higher-cost fixed-rate mortgage with a high-risk (stock and cash-heavy) investment portfolio. When yo...
by grabiner
Thu Oct 25, 2007 9:01 pm
Forum: Investing - Help with Personal Investments
Topic: Should i put downpayment when i purchase my new car?
Replies: 12
Views: 3254

Re: Should i put downpayment when i purchase my new car?

Hi Guys, Planning to buy new car. Here is the whole scenario. Car price is around 22000 (Including taxes and registration) I am getting 2.9% APY loan for 36 Months with 0 down payment I have one CD which is gone mature tomorrow. (5000$) Question Where should i use this 5000$? 1) Use it to lower the...
by grabiner
Thu Oct 25, 2007 8:51 pm
Forum: Investing - Help with Personal Investments
Topic: Asset allocation for feedback
Replies: 4
Views: 1132

Re: Asset allocation for feedback

GOALS!! 1. Rebalance, simplify, and consolidate 2. Keep some company stock in my portfolio 3. Have a clear plan for new contributions between taxable and tax advantaged 4. Have a clear plan for withdrawals (short/mid term goals; e.g. car, etc) 5. Move accounts to Vanguard (hopefully before EOY so I...
by grabiner
Thu Oct 25, 2007 12:00 am
Forum: Investing - Theory, News & General
Topic: What effect does a premium/discount have on an ETF?
Replies: 1
Views: 792

International ETFs often trade at a premium or a discount because of stale prices. If an ETF holds Japanese stocks, its net asset value will be based on the last prices on the Tokyo stock exchange. But the ETF trades in the US while the Tokyo exchange is closed, and if economic news will cause the J...
by grabiner
Wed Oct 24, 2007 11:53 pm
Forum: Investing - Help with Personal Investments
Topic: Long term care
Replies: 44
Views: 13100

Re: Long term care

If you are wealthy enough that you can self-insure, or if you don't have anyone depending on your inheritance, you don't need the insurance. Out of curiosity, would you apply the same logic to homeowner's insurance (e.g. my house is worth $200,000, and my investments are worth $500,000, so I can af...