Search found 3973 matches

by PiperWarrior
Fri Sep 12, 2008 6:47 pm
Forum: Personal Investments
Topic: How do you keep track of tax lots?
Replies: 31
Views: 11616

Thank you for responses everybody.

I am not sure how I can summarize this thread and put it into the wiki form, so I'll link Specific Identification of Shares to this thread for now.
by PiperWarrior
Fri Sep 12, 2008 12:41 pm
Forum: Personal Investments
Topic: Please review our portfolio and advise
Replies: 16
Views: 3751

aida2003 wrote:I'm questioning myself whether to have dividends reinvested or sent to our bank account. What would you advise?
See Whether to Reinvest Dividends in a Taxable Account.
by PiperWarrior
Fri Sep 12, 2008 12:36 pm
Forum: Investing - Theory, News & General
Topic: Fun with efficient frontiers 1972-2007
Replies: 67
Views: 12821

detifoss wrote:Please tell me if my interpretation is wrong.
No, you are not wrong. I put the same asset allocation into Simba's spreadsheet and I got the same result just to check that I was not miscalculating anything. (The data are taken from the spreadsheet, so the result should match.)
by PiperWarrior
Fri Sep 12, 2008 11:45 am
Forum: Personal Investments
Topic: Please review our portfolio and advise
Replies: 16
Views: 3751

Thanks Landy!
by PiperWarrior
Fri Sep 12, 2008 10:03 am
Forum: Personal Investments
Topic: Please review our portfolio and advise
Replies: 16
Views: 3751

Re: Please review our portfolio and advise

The suggestion by simplesimon merits consideration. The CPI number, though, which is added to real yield (today ~1.35%) gives me the jitters. TIPs are the Bond d'Jour and many suggest that TIPs should dominate the fixed income side of the portfolio. I shyed away from Inflation Bonds since you are 3...
by PiperWarrior
Fri Sep 12, 2008 12:11 am
Forum: Investing - Theory, News & General
Topic: Fun with efficient frontiers 1972-2007
Replies: 67
Views: 12821

detifoss,

I apologize. I mistakenly used VISVX Small-Cap Value instead of PCRIX. No wonder the SD didn't go down. Here is the updated picture with 10% PCRIX and 90% VTSMX (of the non-bond allocation).

Image
by PiperWarrior
Sun Sep 07, 2008 1:26 pm
Forum: Personal Investments
Topic: Need Help to Escape from UBS to Vanguard
Replies: 56
Views: 11265

For reader's interest, here are fund names. Vanguard FTSE All-World ex-US Index Inv (VFWIX) (0.40%) Vanguard Total Intl Stock Index (VGTSX) (0.27%) Vanguard Tax-Managed Intl (VTMGX) (0.15%) Vanguard Emerging Mkts Stock Idx (VEIEX) (0.37%) VTMGX is fine. Just note that it doen't have emerging markets...
by PiperWarrior
Sun Sep 07, 2008 8:50 am
Forum: Personal Investments
Topic: Fidelity fund equivalent to Vanguard Prime Money?
Replies: 5
Views: 1502

Select Money Market Portfolio (FSLXX) has had decent return. I don't know if it's similar to Prime Money Market though.
by PiperWarrior
Sun Sep 07, 2008 8:48 am
Forum: Personal Investments
Topic: Estimating how much to save for retirement
Replies: 4
Views: 1701

I am a big fan of FIRECalc, but there are many ohers. You might be interested in reading Tools and Calculators.
by PiperWarrior
Sat Sep 06, 2008 8:29 pm
Forum: Personal Investments
Topic: Need Help to Escape from UBS to Vanguard
Replies: 56
Views: 11265

As I mentioned on another thread, PiperWarrior is actually underselling the advantage of tax lost harvesting by ignoring the time value of money. In my view, TLH consists of two components -- interest-free loan and free money. What you are describing is the interest-free loan part. I described the ...
by PiperWarrior
Sat Sep 06, 2008 7:34 pm
Forum: Personal Investments
Topic: Need Help to Escape from UBS to Vanguard
Replies: 56
Views: 11265

The free money is the $3K yearly deduction from ordinary income? No. $3000 * (your current tax marginal rate - your future capital gain tax rate). If you deduct losses at 33% and later pay on $3,000 capital gain tax at 15%, you pocket $3,000 * (33% - 15%) = $540 for free. Of course, nobody really k...
by PiperWarrior
Sat Sep 06, 2008 6:37 pm
Forum: Personal Investments
Topic: Need Help to Escape from UBS to Vanguard
Replies: 56
Views: 11265

Re: My recommendation

His 401k (his+hers) = $275k, 31% 31% NTGI-QM COLL DLY AGG BD (this should track the Lehman Aggregate Bond fund, as Vanguard's Total Bond does) Her IRA = $32 K, 4% 4% Inflation Protected Securities (VIPSX) Taxable = $525 K, 65% 5% Intermediate-Term Tax-Exempt (VWITX) (0.15%) 18% FTSE All World Ex-US...
by PiperWarrior
Sat Sep 06, 2008 1:33 pm
Forum: Personal Investments
Topic: Need Help to Escape from UBS to Vanguard
Replies: 56
Views: 11265

35% Vanguard Total Stock Mkt Idx Adm (VTSAX) (0.07%) 30% Vanguard Total Intl Stock Index (VGTSX) (0.27%) 15% Vanguard Total Bond Market Index Adm (VBTLX) (0.10%) 10% Vanguard Interm-Term Tax-Ex Adm (VWIUX) (0.08%) 10% Vanguard REIT Index Adm (VGSLX) (0.10%) Even though it'll be a taxable account, a...
by PiperWarrior
Sat Sep 06, 2008 11:02 am
Forum: Investing - Theory, News & General
Topic: tax loss harvest-what offsets what?
Replies: 6
Views: 1832

Re: tax loss harvest-what offsets what?

just to understand - Is $3000 the total that one can deduct for one year? That is, one can take the 3000 loss against gains , short or long-term, and then if there is still leftover loss (from the $3000) total , it can be taken against income? Is my understanding correct? No. $3,000 is the limit on...
by PiperWarrior
Sat Sep 06, 2008 9:45 am
Forum: Personal Investments
Topic: Looking for portfolio advice
Replies: 8
Views: 2464

How can you be so fast? You just have to practice several hundred times. :-) His 401(k) $17,500 PIMCO Total Return Instl (PTTRX) (0.43%) So if I'm following this, all forward contributions would be for the bond fund. I'll have to think about that one for a bit. The problem is that you don't have ac...
by PiperWarrior
Sat Sep 06, 2008 12:12 am
Forum: Personal Investments
Topic: Looking for portfolio advice
Replies: 8
Views: 2464

Welcome to the forum! How about something like this? Taxable 5.71% Vanguard FTSE All-World ex-US Index Inv (VFWIX) (0.40%) 0.90% Vanguard Tax-Managed Small Cap Inv (VTMSX) (0.13%) Taxable (legacy; don't reinvest dividends or capital gains) 0.84% Vanguard Tax-Managed Grth & Inc (VTGIX) (0.15%) 1.16% ...
by PiperWarrior
Fri Sep 05, 2008 9:22 pm
Forum: Personal Investments
Topic: Portfolio Help
Replies: 7
Views: 1833

I think in the above post there may be an error though- as there are no inflation protected securities funds listed in the allocation for the current portfolio. How about this instead: Aha. I was looking for a way to add TIPS while maintaining sufficient international exposure. I didn't think of ch...
by PiperWarrior
Fri Sep 05, 2008 8:49 pm
Forum: Personal Investments
Topic: Tax Loss Harvesting Question
Replies: 67
Views: 12556

Yep, a $120 savings would not get me very excited anymore. OTOH it is about a dozen lunches of sushi for me, so well worth it. Sushi is certainly not substantially identical to VWO, so you don't have to worry about a wash sale . :-) I am approaching a 6-figure sum in realized capital losses this ye...
by PiperWarrior
Fri Sep 05, 2008 8:09 pm
Forum: Personal Investments
Topic: Tax Loss Harvesting Question
Replies: 67
Views: 12556

You can find another math example in Tax Loss Harvesting.
by PiperWarrior
Fri Sep 05, 2008 7:29 pm
Forum: Personal Investments
Topic: Should a 21 yr old's IRA hold only (diversified) equities?
Replies: 15
Views: 3059

Welcome to the forum! Given that I'm 21, should I invest solely in equities (e.g. US, Developed Internat'l, Emerging Market) as they have higher expected returns? According to Historical and Expected Returns , Rick Ferri expects the same return from domestic and developed international large-cap sto...
by PiperWarrior
Fri Sep 05, 2008 7:10 pm
Forum: Personal Investments
Topic: Portfolio Help
Replies: 7
Views: 1833

How about something like this? Taxable 15.0% Vanguard FTSE All-World ex-US Index Inv (VFWIX) (0.40%) Her 401(k) at Merrill Lynch 50.0% Blackrock S&P 500 Indx (MASRX) 0.35% His 401(k) at Fidelity 19.0% PIMCO Total Return Fund Administrative Class (PTRAX) 0.68% His 457(b) at Fidelity 6.5% Spartan Inte...
by PiperWarrior
Fri Sep 05, 2008 5:39 pm
Forum: Personal Investments
Topic: Need Help to Escape from UBS to Vanguard
Replies: 56
Views: 11265

I looked at VFWIX but my nubie eye isn't convinced. VGTSX is fine. Just be aware that VGTSX is not fully eligible for foreign tax credit . The difference between two funds is getting smaller and smaller with recent news . For a comparison between the two funds, see FAQ on Vanguard International Fun...
by PiperWarrior
Fri Sep 05, 2008 4:11 pm
Forum: Personal Investments
Topic: Need Help to Escape from UBS to Vanguard
Replies: 56
Views: 11265

How do you convert your 401(k) funds to Roth IRA tax-free? Is the conversion not a taxable event? The conversion is a taxable event, but if your taxable income is zero (after the standard deduction, personal exemption, etc), you don't have to pay tax. If you retire with a sizeable taxable account, ...
by PiperWarrior
Fri Sep 05, 2008 4:06 pm
Forum: Investing - Theory, News & General
Topic: Fun with efficient frontiers 1972-2007
Replies: 67
Views: 12821

This isn't my portfolio, but I was wondering if it wouldn't be too much trouble for you to run a simple one. 90% VTSMX 10% CCF (PCRIX or whatever proxy you need to use) I'm asking in part because of the never ending debate about CCFs. I realize that past performance is not a guarantee of anything. ...
by PiperWarrior
Fri Sep 05, 2008 3:17 pm
Forum: Personal Investments
Topic: Need Help to Escape from UBS to Vanguard
Replies: 56
Views: 11265

1. I fired my UBS advisor today. Congratulations! You just increased your return by 0.5%/year, which is huge given that you may live another 50 years. 4. PiperWarrier (I gotta assume you're also a privot pilot) I appreciate the advice on tax-exempt funds. I must admit though that tax issues are the...
by PiperWarrior
Fri Sep 05, 2008 1:01 pm
Forum: Personal Investments
Topic: Assistance with company 401k and investing $116k inheritance
Replies: 10
Views: 1686

Heh. Looks similar. :D Yup, but you were more helpful than I was, especially about the IRA stuff. :-) Speaking of IRAs, if you aren't sure whether you will be over the income limit for Roth IRA contributions, you might consider waiting until February 2009 or so when you know exactly how much you've...
by PiperWarrior
Fri Sep 05, 2008 12:17 pm
Forum: Personal Investments
Topic: Assistance with company 401k and investing $116k inheritance
Replies: 10
Views: 1686

How about something like this? Taxable ($115,000) 20% Vanguard Total Stock Mkt Idx (VTSMX) (0.15%) 5% Vanguard FTSE All-World ex-US Index Inv (VFWIX) (0.40%) 401(k) ($350,000) 75% Vanguard Target Retirement 2005 (VTOVX) (0.19%) Vanguard Target Retirement 2005 (VTOVX) (0.19%) comes with 57% bonds. Si...
by PiperWarrior
Fri Sep 05, 2008 11:50 am
Forum: Personal Investments
Topic: Critical Mass...Does everyone need equity exposure?
Replies: 15
Views: 3014

Re: Next question...

would it be better to dollar-cost-average buying the extra percentages over a year or two, or just do it all at once immediately, given the latest losses on both funds during the last few months? My standard answer: The answer to your question is period dependent. Do whatever makes you comfortable.
by PiperWarrior
Fri Sep 05, 2008 8:59 am
Forum: Personal Investments
Topic: Good Fidelity fund that surpasses Vanguard's?
Replies: 9
Views: 3378

Seems that FSIIX's ER of .10 to have an edge over VGTSX's ER of .27. FSIIX doesn't have emerging markets. If you combine 80% Fidelity Spartan International Index Inv (FSIIX) (0.10%) 20% Vanguard Emerging Mkts Stock Idx (VEIEX) (0.37%) The weighted average ER is 0.10%*0.8+0.37%*0.2 = 0.154%. The sem...
by PiperWarrior
Fri Sep 05, 2008 8:38 am
Forum: Investing - Theory, News & General
Topic: tax loss harvest-what offsets what?
Replies: 6
Views: 1832

Re: tax loss harvest-what offsets what?

My question is, when you successfully harvest a short term cg loss, it would offset any short term cg on next years tax return. If there's more loss than gain,what would it offset next? Your ordinary income, such as your pay check, dividends, bank interest, etc. What is the sequence, and would it e...
by PiperWarrior
Fri Sep 05, 2008 8:29 am
Forum: Investing - Theory, News & General
Topic: Is all-TIPS bond allocation a form of market timing?
Replies: 30
Views: 3429

A total market bond fund buys everything, but I referred specifically to those who are slicing and dicing. If you are referring to Vanguard Total Bond Market Index (VBMFX), it doesn't contain junk bonds, municipal bonds, TIPS, international bonds, etc. Isn't buying only TIPS rather than nominal bon...
by PiperWarrior
Fri Sep 05, 2008 8:17 am
Forum: Personal Investments
Topic: Need Help to Escape from UBS to Vanguard
Replies: 56
Views: 11265

If I have losses, I intentionally realize them anyway by selling securities with losses regardless of what to do with the proceeds. PW, why do you do this? To get interest-free loan and/or free money from the IRS, which I can in turn invest in the market. Do you have a large backlog of losses you'r...
by PiperWarrior
Thu Sep 04, 2008 11:03 pm
Forum: Personal Investments
Topic: Need Help to Escape from UBS to Vanguard
Replies: 56
Views: 11265

By the way, if you haven't done so, you might want to read Schedule D and its instructions and distill underlying formulas. You get to see how capital gains and losses offset, how remaining losses are carried over, which of short- and long-term capital losses are used first to offset the ordinary in...
by PiperWarrior
Thu Sep 04, 2008 10:49 pm
Forum: Personal Investments
Topic: Washington replaces all-in-one index option with active fund
Replies: 1
Views: 884

Re: Washington replaces all-in-one index option with active

Would you suggest keeping the "Retirement Strategy" fund, or constructing my own portfolio using the options outlined above? Up to you. If your 457 is small, putting the whole thing in "US Stock Market Index Fund (Dow Jones Wilshire 5000, ER 0.1351%)" may not do much harm even if you maintain separ...
by PiperWarrior
Thu Sep 04, 2008 9:58 pm
Forum: Personal Investments
Topic: Portfolio advice please!
Replies: 60
Views: 10498

Welcome to the forum! I don't quite understand "401(k) with FA". It's not an IRA? Anyway, you seem to be able to pick whatever funds you like. So here is one idea. Taxable 19.5% Vanguard FTSE All-World ex-US Index Inv (VFWIX) (0.40%) 3.8% Vanguard Total Stock Mkt Idx (VTSMX) (0.15%) 401(k) 11.3% Lar...
by PiperWarrior
Thu Sep 04, 2008 9:23 pm
Forum: Personal Investments
Topic: Critical Mass...Does everyone need equity exposure?
Replies: 15
Views: 3014

Historically, a portfolio with 20% or so stocks often (but not always) resulted in lower volatility and slightly higher return than a portfolio with 100% bonds. If I remember correctly, a portfolio with a heavily skewed stock/bond allocation doesn't do very well when it comes to withdrawals. (By ske...
by PiperWarrior
Thu Sep 04, 2008 9:01 pm
Forum: Personal Investments
Topic: Need Help to Escape from UBS to Vanguard
Replies: 56
Views: 11265

Welcome to the forum! If I have losses, I intentionally realize them anyway by selling securities with losses regardless of what to do with the proceeds. This is called tax loss harvesting . You mention a lazy portfolio of: Vanguard Total Stock Mkt Idx (VTSMX) (0.15%) Vanguard Total Intl Stock Index...
by PiperWarrior
Thu Sep 04, 2008 8:37 pm
Forum: Personal Investments
Topic: When to buy Vanguard emerging markets
Replies: 8
Views: 2772

I wouldn't worry about short-term movements. Although I prefer low prices to high prices when it comes to shopping, I have no idea if I am buying at the lowest. Given your portfolio size, I assume you have a very long horizon. Long-term investing with a diversified portfolio tends to override a lot ...
by PiperWarrior
Thu Sep 04, 2008 3:45 pm
Forum: Personal Investments
Topic: FTSE = ???
Replies: 8
Views: 2226

Re: FTSE = ???

Dan Moroboshi wrote:Financial Times and Something Else.
:-)
by PiperWarrior
Wed Sep 03, 2008 11:45 am
Forum: Investing - Theory, News & General
Topic: This Week on the Wiki (September 3, 2008)
Replies: 4
Views: 1386

Re: This Week on the Wiki (September 3, 2008)

Barry, thank you for the weekly updates. Here is an example, taken from the Wikified version of the Reference Library topic on Bogleheads Authors. The navigation box at the bottom of each page contains links to all the pages in this topic. Try it out and let us know what you think. Bogleheads Author...
by PiperWarrior
Wed Sep 03, 2008 4:23 am
Forum: Personal Investments
Topic: What is a 12b-1 fee for mutual fund?
Replies: 3
Views: 1188

Re: What is a 12b-1 fee for mutual fund?

Welcome to the forum! What is a 12b-1 fee for mutual fund? According to Mutual Funds and Fees : The 12b-1 fee gets its name from the section in the Investment Company Act of 1940 that allows a mutual fund to pay distribution and marketing expenses out of the fund's assets. The original intent of a 1...
by PiperWarrior
Wed Sep 03, 2008 1:13 am
Forum: Personal Investments
Topic: When do you drop a fund?
Replies: 16
Views: 3285

Re: When do you drop a fund?

Welcome to the forum! I bought three funds in the middle of the year, and they are each down between 10 - 17 %, but total portfolio is down only 8%. I am not going to touch the dough for several decades. Should I take the loss or give it time and see what happens? How about buying more according to ...
by PiperWarrior
Wed Sep 03, 2008 12:55 am
Forum: Personal Investments
Topic: Short term taxable account investing
Replies: 15
Views: 2746

Re: Short term taxable account investing

As a starting point, you might consider a CD, online savings account, taxable money market fund, etc. If you are in a high tax bracket, you might consider a tax-exempt money market fund. Vanguard and Fidelity has several tax-exempt money market funds. You might want to calculate taxable equivalent y...
by PiperWarrior
Wed Sep 03, 2008 12:17 am
Forum: Personal Investments
Topic: Relatively new at this, much help needed.
Replies: 3
Views: 1036

Welcome to the forum! When you are starting out, it's difficult to have several funds. So, here is one idea. Roth IRA Fidelity Four-in-One Index (FFNOX) (0.23%) 401(k) Fidelity Freedom 2020 (FFFDX) (0.72%) Don't be confused by "2020". You don't have to retire in 2020. You just have to pick a Freedom...
by PiperWarrior
Tue Sep 02, 2008 11:40 pm
Forum: Personal Investments
Topic: Portfolio Help For Newly Married Couple
Replies: 12
Views: 2101

PiperWarrior - I was looking through your suggested portfolio and it looks like in my "Total Annual" contribution sections there is only 5% going in to bonds every year. Was that intentional? Seems like I should try to match my annual contributions to my allocation (unless I need re-balance)? Did y...
by PiperWarrior
Tue Sep 02, 2008 9:30 pm
Forum: Personal Investments
Topic: How do you keep track of tax lots?
Replies: 31
Views: 11616

Re: MS Money + Ultrasoft MoneyLink + Excel

I use MS Money to track purchases and sales lots. I also reinvest everything in both taxable and non-taxable accounts. This makes lots of lots - but oh well - that's what computers are for. Since I have lots of small lots - I normally TLH whole lots - I don't see a need to split 1.312 shares of som...
by PiperWarrior
Tue Sep 02, 2008 8:44 pm
Forum: Personal Investments
Topic: Portfolio Help For Newly Married Couple
Replies: 12
Views: 2101

TIPS tend to have very low to slightly negative correlation with stocks. Short- to intermediate-term nominal Treasuries tend to have very low correlation with stocks. Investment-grade corporate bonds might return a bit more than nominal Treasuries but most likely come with higher correlation with st...
by PiperWarrior
Tue Sep 02, 2008 8:11 pm
Forum: Personal Investments
Topic: 401k and allocation help please
Replies: 7
Views: 2293

Re: short term progress update

next moves : - 1. convert 401k to vipsx 2. sell gnma and health funds at vanguard. buy total sm 3. sell bjbix/swmix/swdsx. buy vti 4. use cash to balance as needed. any further advise appreciated, thanks gordon My advice above doesn't change. Are you planning to buy international funds like Vanguar...
by PiperWarrior
Tue Sep 02, 2008 7:49 pm
Forum: Personal Investments
Topic: tax loss harvest and state taxes?
Replies: 3
Views: 1165

Re: tax loss harvest and state taxes?

am wrote:Does the 3k get deducted from state taxed income also?
The answer depends on your state. You might want to look at your state income tax forms.
by PiperWarrior
Tue Sep 02, 2008 7:42 pm
Forum: Personal Investments
Topic: to reinvest or not to reinvest?
Replies: 24
Views: 3707

Re: to reinvest or not to reinvest?

Vanguard may try to gloss over the fact that indexing earned no money this decade by promoting the rise in assets in Total Stock Market. Don't buy it. This would seem to negate bogleheads tilt toward total stock market fund. Could I have your take on that. He advocates Primecap / primecap core. His...