Search found 74 matches

by hoxbox
Sun Sep 30, 2007 7:18 am
Forum: Investing - Theory, News & General
Topic: Indexing-Fidelity vs. Vanguard
Replies: 33
Views: 8018

I like VG's funds but for my taxable account I'm going with Fido due to Fido's built in specific share selling (I'll only be buying Spartan funds and will buy VG emerging markets fund to supplement my international). With VG I would of had to keep track of all my purchases and email VG with which lots I sold. See my previous thread.

My 401(k) and Roth IRA will be with VG whenever possible since I do not need specific share selling in tax advantaged accounts.
by hoxbox
Wed Sep 26, 2007 8:28 pm
Forum: Personal Investments
Topic: Fund placement error in Investment Planning Sticky?
Replies: 49
Views: 14706

I agree with Mel & Oneleaf that Laura's 4 step is for after you decide whether Roth or Traditional IRA/401(k) is right for you.

Step A: Choosing between which to start: Roth vs. Traditional:
If retired tax rate <tax> tax rate now: Roth IRA
If retired tax rate = marginal tax rate: does not matter.

Special clause:
If your income is so high right now that you do not qualify for deductible part of regular IRA: then but non-deductible IRA and convert to Roth in 2010 (and repeat every year afterwards unless laws change be then)

Step B: Laura's 4 step plan on where to put the funds after you chose Roth vs. Traditional
by hoxbox
Wed Sep 26, 2007 2:06 pm
Forum: Investing - Theory, News & General
Topic: Ken Volpert (VIPSX) on TIPS
Replies: 5
Views: 2147

Opponent Process wrote:I don't know, at this point TIPS are probably an even more speculative investment than gold. Vanguard doesn't even recommend them.
Lol?

Vanguard Retirement Income Fund
1 Vanguard Total Bond Market Index Fund 44.8%
2 Vanguard Total Stock Market Index Fund 24.3%
3 Vanguard Inflation-Protected Securities Fund 19.9%
4 Vanguard Prime Money Market Fund 4.8%
5 Vanguard European Stock Index Fund 3.6%
6 Vanguard Pacific Stock Index Fund 1.6%
7 Vanguard Emerging Markets Stock Index Fund 1.0%
by hoxbox
Tue Sep 25, 2007 8:18 pm
Forum: Investing - Theory, News & General
Topic: Does anyone remember a study on withdrawing from a retiremen
Replies: 3
Views: 1456

The article concludes withdrawing bonds first in retirement results in fewest chance of shortfalls even if the stock proportion will raise during retirement. Which contradicts higher percentage of bonds at an older age mantra everyone seems to be praising... I wonder what happens when you withdraw bond & stocks at equal rate?

It also concludes rebalancing is not needed...
by hoxbox
Sat Sep 22, 2007 1:17 pm
Forum: Personal Investments
Topic: Specific share ID method of redemptions: worth the bother?
Replies: 24
Views: 6625

Vanguard?..., Vanguard?..., Bueller?..., Bueller?...., Anyone? If VG doesn't wake up on this issue it will be to their detriment. I'm always amazed with the clarity of IRS Pub 564 and the fact that the world's premier Mutual Fund company (Vanguard) pays so little attention to enabling their everyday investors to comply with IRS requirements for specific share ID. Hard to believe and just very peculiar. If they won't do it, can they at least explain why? We need a written policy establishing protocol for this issue! I can't say this with anymore clarity. Is there anybody out there??? Anyone??? Good thing it's another 3 years until I actually will be able to have extra money to invest after maxing out all tax advantaged accounts. Maybe thing...
by hoxbox
Fri Sep 21, 2007 7:39 pm
Forum: Investing - Theory, News & General
Topic: Fidelity vs. Vanguard Index Funds in Taxable Accounts
Replies: 7
Views: 2960

Re: Vanguard & Fidelity

Leif Eriksen wrote:I find Fidelity's checking very good. I can even have my CA Muni MM fund as my core settlement account. I only wish I could use their AMT free MM for my core account.
To get free ATM just setup a Fidelity mySmart Cash account which has unlimited free ATM: set that account to $0, and instruct it to automatically overdraft from your regular Fidelity Brokerage account (it's free and unlimited). Just have to make sure you don't have margin on your brokerage account or it will overdraft the margin first. There's a huge discussion on Fatwallet
by hoxbox
Fri Sep 21, 2007 7:19 pm
Forum: Investing - Theory, News & General
Topic: Fidelity vs. Vanguard Index Funds in Taxable Accounts
Replies: 7
Views: 2960

Paul:
Are you saying Vanguard's international index is more tax efficient than Fido's? How so? I have tax data from Vanguard's international funds below but not sure about fidelity

Image
(from the Taxable account section of the Bogleheads Library)

prh2s: I don't know how BoA's (or other brokerage services offered by banks) will evolve in the future since banks have just recently started offering brokerage services so I'd rather stick with a pure brokerage house.
by hoxbox
Fri Sep 21, 2007 3:42 pm
Forum: Investing - Theory, News & General
Topic: Fidelity vs. Vanguard Index Funds in Taxable Accounts
Replies: 7
Views: 2960

Fidelity vs. Vanguard Index Funds in Taxable Accounts

I'm opening up a taxable account at after my 401(k)/IRA contributions are maxed out. It will contain only stock index funds. I'm seriously considering Fidelity over Vanguard because of the following reasons: 1) Very easy online specific ID selling when I need to sell 2) Lower ERs (I've read about the "loss leader" disadvantages etc but I can always put new money into a Vanguard account if Fido raises fees to much greater than VG) 3) Easily use Fidelity as bank account also due to free ATM/billpay/check writing (Vanguard is missing the ATM part for VanguardAdvantage, requiring a separate bank account which is more work!) Reason #1 is probably the biggest advantage. I can do specific ID with Vanguard also but that requires me tracki...
by hoxbox
Fri Sep 21, 2007 9:08 am
Forum: Investing - Theory, News & General
Topic: Best TIPS
Replies: 36
Views: 9582

Re: ?

Further, to get your bond allocation, something I didn't mention is Series I savings bonds. Don't laugh. They are a reasonable alternative, paying the inflation rate plus a fixed rate of a little over 1%, giving you 4% plus. The real value is that they are not currently taxable, thus tax deferred (you pay only federal, not state, taxes when they are cashed in). The only good point is that they will preserve your cash component against inflation, as do Tips. From another thread http://www.diehards.org/forum/viewtopic.php?t=6051&mrr=1190213249 With the current high spread between the real rates of both I Bonds and TIPS, the TIPS should still provide you with more after-tax return, despite the payment of annual taxes. We did a comparison ...
by hoxbox
Wed Sep 12, 2007 10:33 pm
Forum: Personal Investments
Topic: transfer from 457b while still employed with employer?
Replies: 3
Views: 1943

There's no way to convert 401(k) or 403(b) plans to IRA when you are still employed with the plan's employer... Unless there's a loophole I don't know about...?
by hoxbox
Sun Sep 09, 2007 9:03 pm
Forum: Personal Investments
Topic: Roth Contribution when ineligible for Roth?
Replies: 5
Views: 2061

If you want to be 100% sure that you will have some type of IRA just do a none deductible IRA and convert to Roth in 2010.
by hoxbox
Sun Sep 09, 2007 7:32 pm
Forum: Personal Investments
Topic: Specific share ID method of redemptions: worth the bother?
Replies: 24
Views: 6625

Sounds like it's a pain to do specific share ID trades in Vanguard vs. Fidelity. Given fidelity has some low cost index funds now I wonder if it's best just to go with Fidelity for a taxable account when I actually have enough money to put in taxable account. With Fidelity you can actually see and sell the specific share online? Do you have to send/email a letter just like Vanguard? Edit: A little googling answered my questions From Fidelity's website.. "How do I initiate a trade for specific shares? On the Trade Stocks, Trade Options, or Enter Funds to Sell or Buy pages, select the Choose Specific Shares check box, then click Continue when you’ve specified the rest of your order details. " "Top What confirmation do I receive...
by hoxbox
Sun Sep 09, 2007 12:32 pm
Forum: Personal Investments
Topic: Timing of Rebalancing to gain Long Term Capital Gains Tax?
Replies: 12
Views: 2696

menthol wrote:
DaveTH wrote: Actually, LIFO would likely result in the smallest capital gains.
Unless the last purchase was made within the last year, as seems to be the case with the OP, in which case he/she is subject to the short term CG tax.
This could get complicated when you are actually withdrawing... (say the fund is now $2 / share, look back to see when you bought it for $2 or more a share, sell that lot specifically and pay no tax or even claim capital loss...).
by hoxbox
Sun Sep 09, 2007 8:15 am
Forum: Personal Investments
Topic: Timing of Rebalancing to gain Long Term Capital Gains Tax?
Replies: 12
Views: 2696

larryswedroe wrote:first, I would not rebalance and take ST gains. Wait to take LT gains.
Second, the method of accounting for lots is your one time choice--you can take fifo, lifo or average, but you cannot change methods once you decide
So the mutual fund company let's you choice between fifo & lifo? Fifo would obviously be most desirable to satisfy the first year requirement for rebalancing gains.
by hoxbox
Sun Sep 09, 2007 1:22 am
Forum: Personal Investments
Topic: Visiting the Commercial Bank
Replies: 14
Views: 4404

Many of the bigger banks are now offering 5%+ savings deals if you sign up online. Citi/Wamu etc. to compete with the likes of ING.
by hoxbox
Sun Sep 09, 2007 1:19 am
Forum: Personal Investments
Topic: Lump sum or dollar cost averaging right now??
Replies: 52
Views: 16097

gummy wrote:If'n you only knew
what your investments would do.

If they go DOWN then UP
then DCA is your cup. :D
If we can time the markets we all could be Mutual Fund managers beating the market consistently with million dollar yachts in the Hamptons and wouldn't be diehards who buy & hold on to the funds until retirement while happily getting the average returns :lol:
by hoxbox
Sun Sep 09, 2007 12:44 am
Forum: Personal Investments
Topic: Timing of Rebalancing to gain Long Term Capital Gains Tax?
Replies: 12
Views: 2696

Timing of Rebalancing to gain Long Term Capital Gains Tax?

From reading the old posts I understand it's much better to rebalance via contribution and then rebalance in tax-advantaged accounts. However what happens when you are forced to rebalance in a taxable account? To gain long term capital gains tax rate of 15% you need to hold the fund for one year. Does that year starts when you first bought the fund or is it the last time you made a contribution to it? Example: I have $100 in fund XYZ @ $1 / share in taxable account, $90 from a contribution 2 years ago and $10 from contribution 3 month ago. Now that fund doubled to $200 and I must sell $100 (50 shares) of it. Logic would suggest I'm selling the shares I bought 2 years instead so it should be taxed @ 15% even though I bought more shares 3 mon...
by hoxbox
Sat Sep 08, 2007 6:20 pm
Forum: Personal Investments
Topic: Lump sum or dollar cost averaging right now??
Replies: 52
Views: 16097

Lump sum once per year is like dollar cost averaging yearly vs. per paycheck . I read somewhere (don't remember where) that even if you invest at the worst 10 days of the year you're still better in the long run because your money is in the market longer.

Personally I plan on taking out 0% credit cards to finance lump summing it at the beginning of the year while saving up the money to pay back the credit cards for the rest of the year before 0% deal expires :shock:
by hoxbox
Sat Sep 08, 2007 6:13 pm
Forum: Personal Investments
Topic: Do you upgrade your Quicken or MS Money every year?
Replies: 40
Views: 16788

Meep wrote:Any monthly fees for getting stuff from bank/paying bills?
Depending on the bank. Some banks allows free billpay from within Money/Quicken for free but other banks charge you. And some banks you cannot billpay via Money or Quicken. Website based online billpay has been free for most banks.
by hoxbox
Sat Sep 08, 2007 1:14 pm
Forum: Personal Investments
Topic: Pay back 8% Student Loans Now vs. 401(k)/Roth IRA
Replies: 3
Views: 1032

Pay back 8% Student Loans Now vs. 401(k)/Roth IRA

New member, first Topic post WARNING: Math ahead... My background: Age 26, Single & no kids. Income ~50k / year for next 3 years, then 5x as much (in medical residency) Loans: $56k variable private loans currently at around 8% $182k federal loan fixed @ 3.5% All loans are deferrable for next 3 years. No other debt (renting, no credit card debt) **No matching for 401(k)** After maxing out my 401(k) & Roth IRA minus living expenses, I estimate I will have $8k / year left over to pay back private loans. After 3 years all private loans will be paid back in 1 year while maxing out all tax free retirement plans. My question would be whether I should forget about retirement accounts and just concentrate on paying off the 8% loans. Obviousl...
by hoxbox
Sat Sep 08, 2007 12:36 pm
Forum: Personal Investments
Topic: Phase One Complete (Debt Gone) - Time for Phase Two (AA)
Replies: 17
Views: 3581

I stand corrected after reading

"Excerpted from Common Sense on Mutual Funds by John C. Bogle, pages 294-297" on Yahoo FInance
(it won't let me link because I'm a new member, get it by googling "bogle shoven" )

Book is now on order :lol:

It would be better to put tax efficient stock index funds in taxable account and corporate bonds in taxfree accounts vs. stocks in taxfree and municipal bonds in taxable.

Re: Roth. It's a difficult decision because you don't know how the tax codes will change in the future. If you do think you will pay lower taxes in the future but still do not want to tap into it by force when you hit 70.5 you can do what livesoft says and just convert during your retirement years (age 59.5-70.5)
by hoxbox
Sat Sep 08, 2007 10:49 am
Forum: Personal Finance (Not Investing)
Topic: Health Insurance
Replies: 10
Views: 2571

Since you are a student with no income you will likely qualify for Medicaid which would likely be your cheapest (may even be free) option. I've known some medical students (yes the irony) who are on Medicaid because they went to a Caribbean medical school that didn't offer health insurance.

Everyone should get health insurance. You never know when you'll get hit by an uninsured driver / slip and break a finger / etc.
by hoxbox
Sat Sep 08, 2007 10:38 am
Forum: Personal Investments
Topic: Phase One Complete (Debt Gone) - Time for Phase Two (AA)
Replies: 17
Views: 3581

Re: Additional thoughts

You may find you are using your 401k strictly for tips, have international and total stock market in your taxable, and are getting the remainder of bond component by a ny muni fund. Tim Why are you putting stocks in taxable fund? IMHO it would be better to max out AMT free nonetaxable muni bond funds in taxable accounts before putting stocks in there... I would go with Roth 401(k) over regular 401(k) for 3 reasons: 1. Since you are a high income earners you will not likely tap into your tax-free accounts until much later in your retirement. In order to avoid minimum distribution rule you have to be in a Roth account. 2. Also tax free account is the last account you will be tapping into. Assuming you save steadfastly it's likely you will ha...
by hoxbox
Sat Sep 08, 2007 7:56 am
Forum: Personal Investments
Topic: Do you upgrade your Quicken or MS Money every year?
Replies: 40
Views: 16788

I only upgrade when my online auto update expires. I use MS Money and do budgeting and everything in it.