Search found 8063 matches

by Doc
Sat Mar 17, 2018 7:11 am
Forum: Investing - Theory, News & General
Topic: Is this tax loss harvesting?
Replies: 15
Views: 1510

Re: Is this tax loss harvesting?

I'm pretty sure TLH is basically moot if you are investing in index funds. The fund managers are doing the Tax Loss Harvesting on a routine basis as they re-balance the fund, so you don't have to worry about it. There is no buying or selling involved because the index changes by the same amount as ...
by Doc
Fri Mar 16, 2018 5:51 am
Forum: Investing - Theory, News & General
Topic: Replacement shares with wash sale
Replies: 15
Views: 1554

Re: Replacement shares with wash sale

Then again, I sometimes wonder if the wash sale rules are slowly becoming unenforceable. It was bad enough when there were only taxpayers misinterpreting the wash sale rules. Now, since 2012, we have financial institutions routinely not reporting wash sales when they do exist, and probably reportin...
by Doc
Wed Mar 14, 2018 4:51 pm
Forum: Forum Issues and Administration
Topic: Please Try Out Test Posts Here
Replies: 212
Views: 179056

Re: Please Try Out Test Posts Here

Making a S&P futures and 10 yr yield chart fit in a post.

Image
by Doc
Wed Mar 14, 2018 4:42 pm
Forum: Investing - Theory, News & General
Topic: Schwab CORRECTED 1099 DIV for - 2016 AND 2017
Replies: 8
Views: 690

Re: Schwab CORRECTED 1099 DIV for - 2016 AND 2017

For SCHO the reclassification is borderline de minimis, about six hundredths of a penny per share. I thought de minimis had to do with accretion of market or original issue discount and amortization of market premium. Nevertheless I ignored the SCHO also as far as entering the correction in Quicken...
by Doc
Wed Mar 14, 2018 4:28 pm
Forum: Investing - Theory, News & General
Topic: your cash is trash at brokers J.Zweig - WSJ
Replies: 23
Views: 4400

Re: your cash is trash at brokers J.Zweig - WSJ

Re: Can Vanguard's ultrashort bond fund be considered cash like?
dbr wrote:
Wed Mar 14, 2018 3:38 pm
No, no.
dbr wrote:
Wed Mar 14, 2018 3:38 pm
Yes, yes
:D

Short enough but too risky????

I'm using it as "cash like" waiting to be invested about every three months.
by Doc
Wed Mar 14, 2018 2:39 pm
Forum: Investing - Theory, News & General
Topic: Schwab CORRECTED 1099 DIV for - 2016 AND 2017
Replies: 8
Views: 690

Re: Schwab CORRECTED 1099 DIV for - 2016 AND 2017

They are way behind last year (2016). Last year we got six corrected 1099's. For this year (2017) we have yet to receive any. But in January we got notice that four of our dividends for Schwab funds have had some of the dividends recharacterized as return of capital. No corrected 1099-Div yet. Then ...
by Doc
Wed Mar 14, 2018 1:38 pm
Forum: Investing - Theory, News & General
Topic: Is this tax loss harvesting?
Replies: 15
Views: 1510

Re: Is this tax loss harvesting?

Tax loss harvesting is selling investments at a loss in order to offset other gains either ordinary gains or capital gains. Those gains that are offset typically occur in the future but really can be any time starting on January 1st of the current year. It matters not where those gains come from. (W...
by Doc
Wed Mar 14, 2018 11:17 am
Forum: Investing - Theory, News & General
Topic: your cash is trash at brokers J.Zweig - WSJ
Replies: 23
Views: 4400

Re: your cash is trash at brokers J.Zweig - WSJ

In Rick's somewhat related thread "Is Cash Trash? The Purpose of Cash" https://www.bogleheads.org/forum/viewtopic.php?f=10&t=243357#p3813506 the definition of cash was discussed. Some said that any high quality fixed income with less than one year to maturity could be treated as cash. With that in m...
by Doc
Wed Mar 14, 2018 9:00 am
Forum: Investing - Theory, News & General
Topic: your cash is trash at brokers J.Zweig - WSJ
Replies: 23
Views: 4400

Re: your cash is trash at brokers J.Zweig - WSJ

Why are people holding significant fractions of their portfolio in sweep accounts or in "higher yielding" alternatives at all? Presumably the reason is that people are not paying attention and just don't know. One place I will agree with Rick Ferri is that sweep accounts AND the recommended alterna...
by Doc
Tue Mar 13, 2018 6:02 am
Forum: Investing - Theory, News & General
Topic: Investing spreadsheet or software?
Replies: 17
Views: 1562

Re: Investing spreadsheet or software?

Doc, in short, is it possible to use Quicken 2018 without ever being online (e.g. can you enter all of your transactions and fund prices manually offline) or are you required to be online for any reason? I don't know if I can answer that question. I have Q up right now but am not logged in to Quick...
by Doc
Sun Mar 11, 2018 3:16 pm
Forum: Investing - Theory, News & General
Topic: Investing spreadsheet or software?
Replies: 17
Views: 1562

Re: Investing spreadsheet or software?

Long time Quicken user here. Now using 2018 Deluxe. Vast Improvement now that new owners are paying attention. :happy As long as we are doing kudus to Q. There is now a Portfolio X Ray tool that directs your portfolio to Morningstar so that your data is for actual fund contents not just the categor...
by Doc
Sun Mar 11, 2018 2:59 pm
Forum: Investing - Theory, News & General
Topic: Investing spreadsheet or software?
Replies: 17
Views: 1562

Re: Investing spreadsheet or software?

It requires a login to the New Quicken server to download balance and entries but not if you are doing everything manually. I figured this out, maybe. I'm using Q2018 so it may be different. You need a password to open your data file . This may or may not be your Quicken password. Mine is not. Once...
by Doc
Sun Mar 11, 2018 9:26 am
Forum: Investing - Theory, News & General
Topic: Investing spreadsheet or software?
Replies: 17
Views: 1562

Re: Investing spreadsheet or software?

Doc, please read the first two reviews and let me know if they are not accurate: I'm not exactly sure what you mean by "first two reviews" but let me guess. First comment: 1. Your existing Quicken account cannot be linked to this purchase. Duh. It's a different company. Intuit no longer publishes Q...
by Doc
Sun Mar 11, 2018 7:22 am
Forum: Investing - Theory, News & General
Topic: Investing spreadsheet or software?
Replies: 17
Views: 1562

Re: Investing spreadsheet or software?

I think you may be misinformed. The last few years that Intuit published Quicken the support deteriorated. The new organization took quite a while to get up to speed. Recently there has been major improvement. You don't "sign on" to Quicken to see or work with your data. They just added a password t...
by Doc
Sat Mar 10, 2018 10:38 am
Forum: Investing - Theory, News & General
Topic: Is Cash Trash? The Purpose of Cash
Replies: 178
Views: 17770

Re: Is Cash Trash? The Purpose of Cash

... my definition of cash is same-day access . if you can't use it immediately to buy something then it has to be an investment. under this definition, i hold very little "cash". my checkings account averages $500 a month. That's fine. But that has absolutely nothing to do with Rick's original poin...
by Doc
Thu Mar 08, 2018 1:40 pm
Forum: Investing - Theory, News & General
Topic: Is Cash Trash? The Purpose of Cash
Replies: 178
Views: 17770

Re: Is Cash Trash? The Purpose of Cash

Differentiating cash from bonds is really splitting hairs. I like 1 year t-bills right now. Over 2% yield and as safe and liquid as you can get. I use these instead of money market funds or short-term bond funds. I know what you mean but the statement can lead to confusion. We might avoid some of t...
by Doc
Thu Mar 08, 2018 1:35 pm
Forum: Investing - Theory, News & General
Topic: Is Cash Trash? The Purpose of Cash
Replies: 178
Views: 17770

Re: Is Cash Trash? The Purpose of Cash

Doc, you left out Treasury Floating Rate Notes. They are auctioned off every month. How would you classify them? I never even thought about them. Didn't pay attention when they came into existence. The Treasury calls them notes and the initial term is 2 years which is consistent with the "note" nom...
by Doc
Thu Mar 08, 2018 9:32 am
Forum: Investing - Theory, News & General
Topic: Is Cash Trash? The Purpose of Cash
Replies: 178
Views: 17770

Re: Is Cash Trash? The Purpose of Cash

Differentiating cash from bonds is really splitting hairs. I like 1 year t-bills right now. Over 2% yield and as safe and liquid as you can get. I use these instead of money market funds or short-term bond funds. I know what you mean but the statement can lead to confusion. We might avoid some of t...
by Doc
Wed Mar 07, 2018 6:23 pm
Forum: Investing - Theory, News & General
Topic: When allowed to harvest these losses to avoid a wash sale?
Replies: 11
Views: 596

Re: When allowed to harvest these losses to avoid a wash sale?

Doc, you are correct that neither will be flagged for a wash with separate accounts if Jack sells earlier than Day 170. But the IRS could impose a penalty if they are audited and find that they took that loss without reporting the wash. Don't blame me guys. Vanguard made me do it. :D We don't use t...
by Doc
Wed Mar 07, 2018 4:05 pm
Forum: Investing - Theory, News & General
Topic: When allowed to harvest these losses to avoid a wash sale?
Replies: 11
Views: 596

Re: When allowed to harvest these losses to avoid a wash sale?

Without going through all your details all "related" parties are considered as one for purposes of wash sales regardless of which account the holdings might be in. I belive the related parties also includes children if living in the same household. I don't know about siblings. FWIW brokers are only ...
by Doc
Wed Mar 07, 2018 3:33 pm
Forum: Investing - Theory, News & General
Topic: Is Cash Trash? The Purpose of Cash
Replies: 178
Views: 17770

Re: Is Cash Trash? The Purpose of Cash

Does a transfer from Vanguard to your bank take one day or two days for the transferred amount to appear as available in your bank? That's a receiving bank issue not a sending bank issue. Basically its available in one day but it might show as pending until the bank runs it's nightly bookkeeping pr...
by Doc
Wed Mar 07, 2018 11:58 am
Forum: Investing - Theory, News & General
Topic: Is Cash Trash? The Purpose of Cash
Replies: 178
Views: 17770

Re: Is Cash Trash? The Purpose of Cash

Instant Liquidity (no worries about funding big purchases, e.g., car replacement) My entire portfolio is liquid. I can convert it to cash in 24 hours and move it to my bank in another 24 hours. In fact, I don't count anything as being in my portfolio that can't make this trip in that short of time....
by Doc
Wed Mar 07, 2018 11:17 am
Forum: Investing - Theory, News & General
Topic: Looking for an example of a fund which has beat its index for 30 years
Replies: 93
Views: 9088

Re: Looking for an example of a fund which has beat its index for 30 years

Is this what you're looking for? 3 month rolling return chart: https://s19.postimg.org/ext503oqb/MM_Capture.png http://quotes.morningstar.com/chart/fund/chart?t=VMMXX®ion=usa&culture=en-US&dataParams=%7B%22zoomKey%22%3A11%2C%22version%22%3A%22US%22%2C%22showNav%22%3Atrue%2C%22defaultShowName%22%3...
by Doc
Wed Mar 07, 2018 10:50 am
Forum: Investing - Theory, News & General
Topic: Is Cash Trash? The Purpose of Cash
Replies: 178
Views: 17770

Re: Is Cash Trash? The Purpose of Cash

In my opinion, how much cash, if any, should be maintained is a very personal decision that may be different for each individual. Factors such as where one is in their life journey, the risk or stability of their chosen profession or field, starting a business, running a business with fluctuations,...
by Doc
Wed Mar 07, 2018 9:46 am
Forum: Investing - Theory, News & General
Topic: Is Cash Trash? The Purpose of Cash
Replies: 178
Views: 17770

Re: Is Cash Trash? The Purpose of Cash

The most common example of emergency we think of for investors on this board would be losing one's job and not being reemployed for months. Maybe, depending on who's on line. For the tenured college professor losing his job is facing an emergency. To a contract construction engineer it is a conting...
by Doc
Wed Mar 07, 2018 9:32 am
Forum: Investing - Theory, News & General
Topic: Should capital returns be included in total returns?
Replies: 9
Views: 665

Re: Should capital returns be included in total returns?

To try to simplify what dbr posted. Return is the cash received plus the increase (or minus decrease) in the asset value. Divide by the initial value to get a percent. Don't stop here. To know how well or bad your investment does, you need to convert the total return % to annualized return %. A 3% ...
by Doc
Wed Mar 07, 2018 9:14 am
Forum: Investing - Theory, News & General
Topic: Is Cash Trash? The Purpose of Cash
Replies: 178
Views: 17770

Re: Is Cash Trash? The Purpose of Cash

People often ask what purpose cash has in a portfolio. Cash serves two purposes; it’s either waiting to be invested or it’s waiting to be spent. Rick Ferri What about an emergency fund? It's not really cash waiting to be spent. What's an emergency? What is EMERGENCY? Situation requiring immediate a...
by Doc
Tue Mar 06, 2018 6:34 pm
Forum: Investing - Theory, News & General
Topic: Should capital returns be included in total returns?
Replies: 9
Views: 665

Re: Should capital returns be included in total returns?

To try to simplify what dbr posted. Return is the cash received plus the increase (or minus decrease) in the asset value. Divide by the initial value to get a percent. It matters not what the source of that cash received is do to. (If you reinvest cash it increases the the asset value and the net is...
by Doc
Tue Mar 06, 2018 4:32 pm
Forum: Investing - Theory, News & General
Topic: Hold Only Short-Term Bonds?
Replies: 22
Views: 2680

Re: Hold Only Short-Term Bonds?

Thanks Doc. I recall Swedroe saying DFA looked at the yield slope and tended to buy further out when it was more steeply sloped. I've tried various algorithms with this simple idea using Treasury data. An example would be to increase duration if one got >25bp/year for it. But never came up with any...
by Doc
Tue Mar 06, 2018 2:59 pm
Forum: Investing - Theory, News & General
Topic: Hold Only Short-Term Bonds?
Replies: 22
Views: 2680

Re: Hold Only Short-Term Bonds?

BlueEars wrote:
Tue Mar 06, 2018 12:58 pm
Any idea how this DFA 5-year global fund has changed duration over the years?
Image
http://portfolios.morningstar.com/fund/ ... ture=en_US
by Doc
Tue Mar 06, 2018 2:49 pm
Forum: Investing - Theory, News & General
Topic: Is Cash Trash? The Purpose of Cash
Replies: 178
Views: 17770

Re: Is Cash Trash? The Purpose of Cash

... in the Vanguard Federal MM Fund, against which we can write checks or move money to our bank checking account on the next business day. The rest of our “cash” at Vanguard is held in either the Prime or the Municipal MM fund, depending upon which is currently providing the higher after tax yield...
by Doc
Tue Mar 06, 2018 12:35 pm
Forum: Investing - Theory, News & General
Topic: Is Cash Trash? The Purpose of Cash
Replies: 178
Views: 17770

Re: Is Cash Trash? The Purpose of Cash

If I can place an order to transfer "assets" during business hours and that money is in my bank the next day those "assets" are cash. If it takes two business days it's not cash. (Ironically that may make my margin account cash and it certainly doesn't keep up with inflation. But then margin is nor ...
by Doc
Mon Mar 05, 2018 3:44 pm
Forum: Investing - Theory, News & General
Topic: Bond ETF vs Treas
Replies: 23
Views: 2004

Re: Bond ETF vs Treas

The topic brought up is tax loss harvesting or otherwise replacing individual bonds and worrying about wash sales. In distinction to the case of no definition existing for what is meant by substantially identical for mutual funds, there is case law addressing that for individual bonds. Specifically...
by Doc
Mon Mar 05, 2018 2:54 pm
Forum: Investing - Theory, News & General
Topic: Bond ETF vs Treas
Replies: 23
Views: 2004

Re: Bond ETF vs Treas

Nothing is forcing me to buy something with a similar duration. But normal practice when tax loss harvesting is to buy something with the same risk/reward profile that is not substantially identical to what your are selling. In the case of individual bonds there is actual case law on what is substa...
by Doc
Mon Mar 05, 2018 11:03 am
Forum: Investing - Theory, News & General
Topic: Bond ETF vs Treas
Replies: 23
Views: 2004

Re: Bond ETF vs Treas

In your example, if you are 3 years (instead of 5) into a 10 year, you cannot buy a 7 year bond and what is forcing you to buy a bond equal to the remaining duration anyway? You're assuming the average Joe with a brokerage account can do so many more things than a bond professional managing a fund ...
by Doc
Sun Mar 04, 2018 7:34 pm
Forum: Investing - Theory, News & General
Topic: Bond ETF vs Treas
Replies: 23
Views: 2004

Re: Bond ETF vs Treas

This would be a wash sale if you did it exactly this way; you would need to buy a bond not substantially identical to the bond you sold, or a bond fund. Right. I would just buy an on the run issue with similar maturity. If the IRS makes a ruling that these two investments are similarly identical th...
by Doc
Sun Mar 04, 2018 9:42 am
Forum: Investing - Theory, News & General
Topic: Bond ETF vs Treas
Replies: 23
Views: 2004

Re: Bond ETF vs Treas

But dopes it matter? If you have a 10 year that yields 2.5% and rates go to 2.75%, the value of your bond is impaired. If you sell it before maturity, you get less. If you choose to hold it, the interest rate you earn is impaired (less than the current rate). You can sell it for less than par and b...
by Doc
Sat Mar 03, 2018 11:46 am
Forum: Investing - Theory, News & General
Topic: Bond ETF vs Treas
Replies: 23
Views: 2004

Re: Bond ETF vs Treas

If the bond ETF holds the bonds until maturity, they won't lose any principal either. The thing is, you will see the fluctuations in the bond ETF daily. If you actually went and looked up your treasuries, you would see they fluctuate daily too. It just isn't as obvious. FWIW bond ETFs and funds typ...
by Doc
Thu Mar 01, 2018 4:27 pm
Forum: Investing - Theory, News & General
Topic: Tax loss harvesting Treasuries?
Replies: 9
Views: 538

Re: Tax loss harvesting Treasuries?

Yes, it certainly appears that you put a great deal more time and energy into your bond portfolio holdings than the average Boglehead, Doc! We were self employed for much of our working lives and didn't accumulate a lot of tax advantaged space. Hence, a whole lot of our bonds are in taxable and get...
by Doc
Thu Mar 01, 2018 3:46 pm
Forum: Investing - Theory, News & General
Topic: Tax loss harvesting Treasuries?
Replies: 9
Views: 538

Re: Tax loss harvesting Treasuries?

Personally, I just tax loss harvest at every given opportunity during the year, and then let the intricacies sort themselves out at tax time. That approach would sure be something to keep me busy. https://s19.postimg.org/bunrvs7zn/Bond_Tax_Loss_Harvesting_Capture.png The blank categories are Treasu...
by Doc
Thu Mar 01, 2018 2:49 pm
Forum: Investing - Theory, News & General
Topic: Tax loss harvesting Treasuries?
Replies: 9
Views: 538

Re: Tax loss harvesting Treasuries?

However, I'm a bit surprised by your question. Wouldn't a capital loss just be a capital loss for tax purposes, regardless of whether it comes from stocks or bonds? Perhaps there are some subtle total return considerations with bond tax loss harvesting that I'm missing? I've always thought tax loss...
by Doc
Thu Mar 01, 2018 2:10 pm
Forum: Investing - Theory, News & General
Topic: Tax loss harvesting Treasuries?
Replies: 9
Views: 538

Re: Tax loss harvesting Treasuries?

The trouble with Treasury Bond funds is that it is going to be hard to find a TLH partner that is not substantially identical unless you are willing to change your investment for 30 days Hard? Piece of cake. :D TREASURY NOTES & BONDS Maturity Coupon Bid Asked Chg Asked yield 9/15/2020 1.375 97.6016...
by Doc
Thu Mar 01, 2018 12:25 pm
Forum: Investing - Theory, News & General
Topic: Tax loss harvesting Treasuries?
Replies: 9
Views: 538

Tax loss harvesting Treasuries?

Does it make sense to tax loss harvest bonds? If we restrict the discussion to Treasuries we can limit the analysis to term effects but the credit effect may may also have meaning if we widen the discussion. For Treasuries I have an unrealized capital loss because interest rates have risen. I can ha...
by Doc
Thu Mar 01, 2018 9:09 am
Forum: Investing - Theory, News & General
Topic: Vanguard Short-Term Investment Grade Bond Fund - Gamesmanship???
Replies: 27
Views: 2077

Re: Vanguard Short-Term Investment Grade Bond Fund - Gamesmanship???

Nobody seems to have commented at least directly that coupon by itself is not indicative of very much at all. A high coupon bond selling at a large discount may have the exact same characteristics as a low coupon bond selling near prime. Think about it. As an example compare a bond with a compound o...
by Doc
Wed Feb 28, 2018 5:51 pm
Forum: Investing - Theory, News & General
Topic: "Where Do IRAs Fit in Your Retirement Distribution Plan?"
Replies: 6
Views: 834

Re: "Where Do IRAs Fit in Your Retirement Distribution Plan?"

However, I don't anticipate that our spending needs will ever push us out of the 12% bracket apart from some aberrant situation. Do you consider receiving Social Security benefits to be "some aberrant situation"? The phasein of taxation for Social Security benefits will make your effective marginal...
by Doc
Wed Feb 28, 2018 5:35 pm
Forum: Investing - Theory, News & General
Topic: International funds: Tax-deferred or Roth?
Replies: 32
Views: 1881

Re: International funds: Tax-deferred or Roth?

Fair enough. Let's try this: An investor will maximize their overall after-tax rate of return on dollars invested in a given portfolio if the most growth occurs in the account taxed at the lowest rate. Commonly, the account taxed at the lowest rate is a traditional tax-deferred account. Fair enough...
by Doc
Wed Feb 28, 2018 3:55 pm
Forum: Investing - Theory, News & General
Topic: International funds: Tax-deferred or Roth?
Replies: 32
Views: 1881

Re: International funds: Tax-deferred or Roth?

The disagreement on tax rates. This has been adjudicated a long time ago. The basis concept is to put all your different types of accounts on a similar tax basis. It easier and probably better to put them all on an after tax basis. So you wind up with the following adjustments: (To make the presenta...
by Doc
Wed Feb 28, 2018 1:22 pm
Forum: Investing - Theory, News & General
Topic: International funds: Tax-deferred or Roth?
Replies: 32
Views: 1881

Re: International funds: Tax-deferred or Roth?

If we set: withdrawal_tax_rate = 22% contribution_tax_rate = 25% What am I missing? You are trying to calculate the results to a higher precision than you can possible know. (25/22)^(1/10) = 1.01, (25/22)^(1/30) = 1.004. Do you really know the pretax rate of return on your investment to this kind o...
by Doc
Wed Feb 28, 2018 11:14 am
Forum: Investing - Theory, News & General
Topic: International funds: Tax-deferred or Roth?
Replies: 32
Views: 1881

Re: International funds: Tax-deferred or Roth?

... a significant savings in taxes by placing all international funds ... You may have a misconception here. The intent is not to minimize taxes but to maximize after tax returns. It's not always the same thing. From the little chart you showed it appears that you may be equating an amount of preta...