Search found 3973 matches

by PiperWarrior
Fri Oct 10, 2008 7:05 pm
Forum: Investing - Theory, News & General
Topic: Tax loss harvesting
Replies: 7
Views: 1473

Webfoot wrote:Is going from Vanguard Index 500 to Vanguard Total Stock Market considered different enough funds?
Probably, but I don't have an authoritative answer.
by PiperWarrior
Fri Oct 10, 2008 6:02 pm
Forum: Personal Investments
Topic: Mother of All Tax Loss Harvesting Threads
Replies: 247
Views: 68409

livesoft wrote:Your carryover is reported to the IRS each year on your Schedule D and gets transferred to your next year Schedule D.
In addition to what livesoft said above, may I suggest you read Schedule D and its instructions? It's not a complicated form.
by PiperWarrior
Fri Oct 10, 2008 5:43 pm
Forum: Personal Investments
Topic: Need 100k Portfolio before tilting?
Replies: 17
Views: 3661

Any other thoughts, o wise audience? Whether you tilt or not, stay the course. Don't throw away a small-cap value tilt in years like 1998 and 1999. Some fun with numbers. Here is the difference between the 10-year cumulative returns between Portfolio A 50% Vanguard Total Stock Mkt Idx (VTSMX) (0.15...
by PiperWarrior
Fri Oct 10, 2008 4:52 pm
Forum: Personal Investments
Topic: Mother of All Tax Loss Harvesting Threads
Replies: 247
Views: 68409

stratton wrote:Anything on TLH muni bond funds?
Great idea! I copied a paragraph from the wiki and added it to the FAQ above. Thanks!
by PiperWarrior
Fri Oct 10, 2008 4:37 pm
Forum: Personal Investments
Topic: Mother of All Tax Loss Harvesting Threads
Replies: 247
Views: 68409

Here are some questions that people might ask: How does tax loss harvesting work? See Tax Loss Harvesting . TLH Alternatives See the link by InvestingMom above and Approximating Total Stock Market for TSM alternatives. Are Fund A and Fund B substantially identical? Sorry, I don't have an authoritati...
by PiperWarrior
Fri Oct 10, 2008 3:58 pm
Forum: Personal Investments
Topic: Only invest in 401k to get match then taxable funds?
Replies: 4
Views: 1139

Welcome to the forum! I was thinking that I would invest 3% to get the company match (3%) and then put the balance (i could afford to put the additional amount in to make up the tax bite - i would 'gross up' my contributions) into either fidelity index funds or t rowe price target date fund. Fidelit...
by PiperWarrior
Fri Oct 10, 2008 3:39 pm
Forum: Personal Investments
Topic: Tax Loss Harvesting Question - Exchanging Funds
Replies: 7
Views: 1957

I was browsing Vgard ETFs and they don't have one for tax-managed international. See Vanguard Europe Pacific ETF (VEA) (0.12%). You would have to read its prospectus to figure out that it's actually the ETF share class of Tax-Managed International. If I offset capital gains of 3000 each year(worst ...
by PiperWarrior
Fri Oct 10, 2008 3:34 pm
Forum: Investing - Theory, News & General
Topic: Tax loss harvesting
Replies: 7
Views: 1473

1. If I am in a low tax bracket, is this worth doing? You would have to run numbers, but here are some thoughts. Your taxable income doesn't seem to include capital gains. If that's the case, you should be able to deduct losses instead of using them to offset gains. So, you should be able to pick u...
by PiperWarrior
Fri Oct 10, 2008 3:04 pm
Forum: Personal Investments
Topic: Tax loss heaven -- list of good substitutes?
Replies: 13
Views: 2576

simpleman wrote:anybody know if replacing VTI with IWV (iShares Russell 3000 Index) and VEU with EFA(iShares MSCI EAFE Index) would be considered a "wash-sale"?
Probably not, but I don't have an authoritative answer.
by PiperWarrior
Thu Oct 09, 2008 4:40 pm
Forum: Personal Investments
Topic: Question for Larry and Rick
Replies: 47
Views: 10603

By definition, as of 6/30, over 1,800 stocks could be classified as more value oriented than the market (across large/medium/small capitalizations), and over 3,200 can be classified as smaller than the market (750 mid caps, almost 2,500 small/micro caps). Just how is it that we decide overweighting...
by PiperWarrior
Wed Oct 08, 2008 8:15 am
Forum: Personal Investments
Topic: Tax Loss Harvesting out of VTI and VXF
Replies: 4
Views: 2047

Arelin wrote:How do I determine relative weighting of VV and VB if I am using it to TLH for VTI?
See Approximating Total Stock Market.
by PiperWarrior
Tue Oct 07, 2008 10:46 pm
Forum: Personal Investments
Topic: Junk Bond Index Fund?
Replies: 2
Views: 833

If I am young and I can take on risk, should I think about a junk bond index fund? Sure, you should think and learn about it. Whether you should invest in it is another story. Are junk bonds equivalent to stocks when it comes to risk and return? No. By itself Historically, the risk adjusted return ...
by PiperWarrior
Mon Oct 06, 2008 8:49 pm
Forum: Personal Investments
Topic: Portfolio Help
Replies: 11
Views: 3668

I'm concerned the Tax Loss Harvesting will be confusing to me since I've never done it before. Most examples I have found deal with a single lump sum investment but we put money in every month so hopefully that doesn't make it too difficult. Well, tax loss harvesting is expected to add a little ext...
by PiperWarrior
Sun Oct 05, 2008 10:20 pm
Forum: Personal Consumer Issues
Topic: Bitter taste of coffee and beer
Replies: 52
Views: 11540

jeff mc wrote:"A London brewery has started producing beer brewed from Rwandan coffee beans."
Oh no! I'll run away as fast as I can. :-)
by PiperWarrior
Sun Oct 05, 2008 10:17 pm
Forum: Personal Consumer Issues
Topic: Bitter taste of coffee and beer
Replies: 52
Views: 11540

I am guessing that people here that like coffee to start with like to add milk and/or sugar. Just out of curiosity, anybody here for black? I don't get the taste, but I would love to hear why some people like it. (OK, words may not be the best way to describe a taste, but what can I do here?) If I h...
by PiperWarrior
Sun Oct 05, 2008 7:39 pm
Forum: Personal Investments
Topic: Which index funds will distribute unusual gains?
Replies: 17
Views: 2739

Thanks for posting that link.. howd u ever find it? It's linked to from Vanguard Total Stock Market Index Fund . bTW, that number on the spreadsheet, 'realized gain' for 2007 of $2,244,679,000; its Way larger than the next nearest 'realized gain' for any other year listed. ... does that number repr...
by PiperWarrior
Sun Oct 05, 2008 7:10 pm
Forum: Personal Finance (Not Investing)
Topic: Traditional IRA
Replies: 2
Views: 944

Re: Traditional IRA

What tax bracket do the capital gains and RMD put your parents into? Still below the standard/itemized deduction + personal exemptions? If that's the case, I would strongly consider a Roth conversion. They might also consider converting a bit more depending on their situation. Note that capital gain...
by PiperWarrior
Sun Oct 05, 2008 7:02 pm
Forum: Personal Consumer Issues
Topic: Bitter taste of coffee and beer
Replies: 52
Views: 11540

epilnk wrote:Apparently no one thought to tell me it was supposed to keep me awake.
I took a small bottle of caffeine just when I was cramming for an exam back in high school. Half an hour later, I was asleep. Somehow my body is caffeine resistant. :-)
by PiperWarrior
Sun Oct 05, 2008 6:57 pm
Forum: Personal Investments
Topic: Which index funds will distribute unusual gains?
Replies: 17
Views: 2739

So in the end, I think wouldnt we still tend to be ahead with Vanguard index funds re the cap gains exposure we're talking about resulting from internal selling within the fund? I think about .8% of the TSM fund is kept in cash.. I wouldn't worry about capital gain distributions from TSM. You might...
by PiperWarrior
Sun Oct 05, 2008 6:46 pm
Forum: Personal Investments
Topic: Portfolio Help
Replies: 11
Views: 3668

I think PiperWarrior's future contributions don't look right Sorry, thanks for catching the error. I took $1,000/month as $1,000/year. I didn't mean to pocket $11,000 to boost the return of my portfolio. :-P By the way, I forgot to comment on VTSAX. I put all of VTSAX in one account, namely His IRA...
by PiperWarrior
Sun Oct 05, 2008 2:56 pm
Forum: Personal Investments
Topic: Which index funds will distribute unusual gains?
Replies: 17
Views: 2739

Do we generally receive the appropriate 1099s indicating our tax exposure against which youd want to havest for the 07 year in time to make moves by calendar year end to offset them? No. Form 1099s for year YYYY are commonly mailed in late January or early February YYYY+1. As far as I know, Form 10...
by PiperWarrior
Sun Oct 05, 2008 12:57 pm
Forum: Personal Investments
Topic: Which index funds will distribute unusual gains?
Replies: 17
Views: 2739

paul e wrote:Do we have til april '08 to harvest those losses for '07 filing, or, must it be done in the calendar year 2007 in order to claim them with the April filing?
You must harvest losses in the calendar year 2007 for 2007 filing.
by PiperWarrior
Sun Oct 05, 2008 9:02 am
Forum: Personal Investments
Topic: When to invest in taxable investments?
Replies: 7
Views: 1851

Re: When to invest in taxable investments?

I'm unclear as to what "Max out 401k/403b" really means. Does "Max out" mean investing up to the $15,500 IRS limit on tax deferred contributions or does it mean to whatever level your plan allows? My current 401k plan allows up to 50% after-tax contributions. Maxing out means contributing as much a...
by PiperWarrior
Sun Oct 05, 2008 1:01 am
Forum: Personal Consumer Issues
Topic: Bitter taste of coffee and beer
Replies: 52
Views: 11540

Thanks for comments so far.

Just to clarify, I am not asking about the taste of coffee blended with beer. That would be awful. :beer
by PiperWarrior
Sun Oct 05, 2008 12:52 am
Forum: Personal Investments
Topic: Newbie asks Financial adviser about index funds
Replies: 74
Views: 15507

You've got great comments and some book recommendations. If you need one more, The Only Guide to a Winning Investment Strategy You'll Ever Need spends more than 100 pages, explaining why active management doesn't work. I would suggest you work your way down from your high level goal. I suppose your ...
by PiperWarrior
Sun Oct 05, 2008 12:01 am
Forum: Personal Consumer Issues
Topic: Bitter taste of coffee and beer
Replies: 52
Views: 11540

Bitter taste of coffee and beer

Admittedly, I am still not used to the bitter taste of coffee and beer. I'm curious to see if people who like them have a moment that "clicks" in their life. That is, is it the case that people don't like these at first and start to like them at a certain age? Or do they like the bitter taste from d...
by PiperWarrior
Sat Oct 04, 2008 11:31 pm
Forum: Personal Investments
Topic: Which index funds will distribute unusual gains?
Replies: 17
Views: 2739

Is it because you plan on taking your losses for the year in TSM, and therefore want to be replacing it in kind after you sell it to havest your losses? Yes. In my view, tax loss harvesting has two components -- interest-free loan and free money. Interest-free loan If you harvest losses, you can de...
by PiperWarrior
Sat Oct 04, 2008 10:21 pm
Forum: Investing - Theory, News & General
Topic: Why dividend paying stocks?
Replies: 98
Views: 18901

Re: Why dividend paying stocks?

Thank you everybody for responses so far. David Dreman has presented data in his book "Contrarian Investment Strategies" that shows from 1970-1996 ( book published in 1998), that the lowest and second lowest price/dividend quintiles beat the market by two full percentage points per year (16.8 to 14....
by PiperWarrior
Sat Oct 04, 2008 9:03 pm
Forum: Investing - Theory, News & General
Topic: Asset Correlation
Replies: 19
Views: 3708

Although it has not changed monotonically, it has gone up from roughly 0.4 to 0.8 or so. Does that mean that the benefit of international diversification has gone down? Probably. Although, this could change again in the future, if the correlation is so high and the volatility of international equit...
by PiperWarrior
Sat Oct 04, 2008 8:23 pm
Forum: Personal Investments
Topic: Portfolio Help
Replies: 11
Views: 3668

Welcome to the forum! How about something like this? Taxable 8.86% Vanguard FTSE All-World ex-US Index Inv (VFWIX) (0.40%) His TIRA at Vanguard (+ his old 401(k)) 3.85% Vanguard Interm-Term Treasury (VFITX) (0.26%) 6.14% Vanguard Total Intl Stock Index (VGTSX) (0.27%) 7.50% Vanguard REIT Index (VGSI...
by PiperWarrior
Sat Oct 04, 2008 7:13 pm
Forum: Investing - Theory, News & General
Topic: Asset Correlation
Replies: 19
Views: 3708

The whole B&H investment strategy is based on using asset classes with low correlation. With an increasingly inter-dependent world economy and fast changing markets, what is the current correlations (or over the past 3 months) between different equity asset classes? Seems like in this downturn, eve...
by PiperWarrior
Sat Oct 04, 2008 4:36 pm
Forum: Personal Investments
Topic: Individual Tips vs. TIPS fund
Replies: 11
Views: 2131

This is one area where Fidelity is probably better. They allow you to buy TIPS and other treasuries for no fee on the secondary market and auctions. The bid/ask spread is a couple basis points wider than Vanguards. FWIW, Schwab also lets you buy TIPS for free at auction and the secondary market. I ...
by PiperWarrior
Sat Oct 04, 2008 4:00 pm
Forum: Personal Investments
Topic: Vanguard Roth holdings
Replies: 4
Views: 1278

I've taken a closer look at the suggestions you've made, done some reading, and can see the logic. I've therefore replaced the Extended Market fund and Long Term Treasury Bond fund with the Small Cap index fund and Vanguard's Total Bond index fund. I've also adjusted the percentages so that the 500...
by PiperWarrior
Sat Oct 04, 2008 11:30 am
Forum: Personal Investments
Topic: tax loss harvesting tsm
Replies: 18
Views: 3646

For readers' interest, here are fund names. Vanguard Total Stock Mkt Idx (VTSMX) (0.15%) Vanguard Large Cap Index (VLACX) (0.20%) Vanguard Small Cap Index (NAESX) (0.22%) Vanguard 500 Index (VFINX) (0.15%) Vanguard Extended Market Idx (VEXMX) (0.24%) I am hesitant to use VLACX +/- NAESX b/c VLACX ha...
by PiperWarrior
Sat Oct 04, 2008 11:14 am
Forum: Personal Investments
Topic: Which index funds will distribute unusual gains?
Replies: 17
Views: 2739

I'm specifically wanting a fund that is a general replacement for TSM. ie S&P500, Large Cap, or something like those. I think Large-Cap Index is pretty unlikely to distribute gains as it has both realized loss carryforward and unrealized depreciation. On the Intl side I'm moving from Total Intl to ...
by PiperWarrior
Sat Oct 04, 2008 10:54 am
Forum: Personal Investments
Topic: tax loss harvesting tsm
Replies: 18
Views: 3646

Why does Vanguard need to know that I'm TLH and how I'm doing it? Isn't that just something the tax man cares about? Publication 564 says: Specific share identification. If you adequately identify the shares you sold, you can use the adjusted basis of those particular shares to figure your gain or ...
by PiperWarrior
Fri Oct 03, 2008 4:25 pm
Forum: Personal Investments
Topic: Vanguard Roth holdings
Replies: 4
Views: 1278

As livesoft said, you should look at all of your accounts as a unified portfolio. If you need help doing soin, you might want to read Investment Planning and then post your situation in the format provided in Asking Portfolio Questions for comprehensive advice. Here are some random thoughts. I would...
by PiperWarrior
Fri Oct 03, 2008 8:22 am
Forum: Investing - Theory, News & General
Topic: Why dividend paying stocks?
Replies: 98
Views: 18901

Why dividend paying stocks?

These days I see several funds that are collections of dividend paying stocks like: Vanguard Dividend Appreciation Idx Inv (VDAIX) (0.40%) Vanguard High Dividend Yield Index Inv (VHDYX) (0.40%) iShares Dow Jones Select Dividend Index (DVY) (0.40%) The whole range of WisdomTree products What role do ...
by PiperWarrior
Fri Oct 03, 2008 7:55 am
Forum: Personal Investments
Topic: Portfolio Help
Replies: 9
Views: 2124

How much are you planning to contribute each year? A portfolio needs to be designed so that you can maintain your desired asset allocation over time, not just now. If your husband is self employed, and he might consider solo 401(k) or SEP IRA. You may have to do a little bit of "engineering", by whi...
by PiperWarrior
Fri Sep 26, 2008 7:13 pm
Forum: Investing - Theory, News & General
Topic: Vanguard High Yield fund
Replies: 130
Views: 25362

However, does it make sense to add this fund in the equity portion of the portfolio? Even if there is an NAV erosion of 1.5-2%, the long term return of this fund will be equivalent to equities. Any thoughts on the standard deviation of this fund and how that compares to risk-adjusted return? Here i...
by PiperWarrior
Fri Sep 26, 2008 11:24 am
Forum: Investing - Theory, News & General
Topic: Dividend Reinvestment
Replies: 3
Views: 1065

Re: Dividend Reinvestment

risky odds wrote:As I understand it consensus here is to use the dividends to re-balance between funds. For IRA isn't it best to keep dividends in the fund rather then re-balanced because it is gaining tax free money?
In an IRA, the decision doesn't really matter. Do whatever works for you.
by PiperWarrior
Fri Sep 26, 2008 8:28 am
Forum: Investing - Theory, News & General
Topic: Is a value tilt ...
Replies: 49
Views: 5362

Rodc wrote:I presume you have a typo and the portfolios go from 60% TSM 0% small value to 0% TSM and 60% small value?
Doh! Fixed.
by PiperWarrior
Fri Sep 26, 2008 8:26 am
Forum: Investing - Theory, News & General
Topic: Is a value tilt ...
Replies: 49
Views: 5362

1. Is this a known or typical strategy (just using Value)? Or some kind of artifact? If I understand correctly, value investing probably has been around for 80 years or so starting from Benjamin Graham. Fama and French put it in a nice model called Fama and French Three-Factor Model . The wiki page...
by PiperWarrior
Fri Sep 26, 2008 7:59 am
Forum: Investing - Theory, News & General
Topic: Is a value tilt ...
Replies: 49
Views: 5362

Rodc, all good points. Yes, efficient frontiers change all the time. Here are different time periods superimposed in one graph, sweeping from 60% Vanguard Total Stock Mkt Idx (VTSMX) (0.15%) 0% Vanguard Small Cap Value Index (VISVX) (0.22%) 30% Vanguard Total Intl Stock Index (VGTSX) (0.27%) 10% Van...
by PiperWarrior
Thu Sep 25, 2008 6:50 pm
Forum: Personal Investments
Topic: Buying TIPS: Fund or Bond?
Replies: 4
Views: 1659

You might be interested in reading: Individual Bonds vs a Bond Fund The Only Guide to a Winning Bond Strategy You'll Ever Need IMHO, issues come down to convenience and control over maturity. For example, if you want to go out to 20-year TIPS to pick up more yield, you may want to use individual TIPS.
by PiperWarrior
Thu Sep 25, 2008 1:35 pm
Forum: Investing - Theory, News & General
Topic: Small value in taxable
Replies: 32
Views: 8596

Have you looked at iShares S&P SmallCap 600 Value Index (IJS) (0.25%)? It has less REITs and thus slightly higher expected return and tax efficiency in terms of QDI. If you are in the highest federal income tax bracket, the QDI difference alone should make up the slightly higher expense ratio of IJS...
by PiperWarrior
Wed Sep 24, 2008 8:35 pm
Forum: Investing - Theory, News & General
Topic: Is a value tilt ...
Replies: 49
Views: 5362

Speedy wrote:what is the time period covered?
1972-2007.
by PiperWarrior
Wed Sep 24, 2008 6:52 pm
Forum: Investing - Theory, News & General
Topic: Is a value tilt ...
Replies: 49
Views: 5362

However, my equity allocation has only 25% international (and no REIT), so I wonder how that would change the curve. Sorry about that. Here we go. One dot moves 3.75% of the portfolio from TSM to SV. http://i33.tinypic.com/29eorhu.png By the way, let me point out that Simba's data are not really ri...
by PiperWarrior
Wed Sep 24, 2008 6:13 pm
Forum: Investing - Theory, News & General
Topic: Is a value tilt ...
Replies: 49
Views: 5362

I just edited my post to add what I thought were the percentages. How do you get 36% SV and 24% TSM? If the whole curve represents 60% TSM, then each point is 3%? 3% x 20 points = 60%? So if you go up 6 points from 60% (the bottom point, which is 100% TSM), shouldn't it be 82% TSM? For avoidance of...