Search found 8653 matches

by Doc
Wed Sep 12, 2018 11:27 am
Forum: Personal Consumer Issues
Topic: Vanguard electronic bank transfers
Replies: 22
Views: 2162

Re: Vanguard electronic bank transfers

I’m curious, why do you perceive the risk to be greater with vanguard checks than a bank’s checks? Even if vanguard check security stinks somehow, I keep far less money in an uninsured money market account (the only vanguard account available to me for checks) than my insured bank / credit union ac...
by Doc
Wed Sep 12, 2018 8:04 am
Forum: Investing - Theory, News & General
Topic: How to respond when your index fund drifts?
Replies: 5
Views: 660

Re: How to respond when your fund changes?

I don't invest in omnibus type funds like TBM or TSM. And for the most part even things like a gov/credit fund like the one you linked to. Hence I don't have the problem. Well you would have the same problem if for example you invest in an emerging markets fund and either: 1. a country that makes u...
by Doc
Tue Sep 11, 2018 10:19 am
Forum: Personal Consumer Issues
Topic: Vanguard electronic bank transfers
Replies: 22
Views: 2162

Re: Vanguard electronic bank transfers

What are the pros and cons of either opening a check writing account with Vanguard or establishing a link between Vanguard and a bank or credit union? There is no way I would have a check writing facility at Vanguard or any broker. There is just no added value to justify any risk involved no matter...
by Doc
Tue Sep 11, 2018 9:00 am
Forum: Investing - Theory, News & General
Topic: Short Term Market Uncertainty - "Buy" Insurance?
Replies: 33
Views: 2117

Re: Short Term Market Uncertainty - "Buy" Insurance?

If one believed this and wanted to take action surely it would be better to move some of the equity portion to long term treasury bonds, rather than move general bonds to short term treasuries ? If there was a crisis wouldn't you expect long term treasuries to go up and they could provide the liqui...
by Doc
Tue Sep 11, 2018 8:50 am
Forum: Investing - Theory, News & General
Topic: How to respond when your index fund drifts?
Replies: 5
Views: 660

Re: How to respond when your fund changes?

I don't invest in omnibus type funds like TBM or TSM. And for the most part even things like a gov/credit fund like the one you linked to.

Hence I don't have the problem.
by Doc
Tue Sep 11, 2018 7:20 am
Forum: Investing - Theory, News & General
Topic: Short Term Market Uncertainty - "Buy" Insurance?
Replies: 33
Views: 2117

Re: Short Term Market Uncertainty - "Buy" Insurance?

dpm321 wrote:
Tue Sep 11, 2018 7:11 am
If you really want protection, look into put options or inverse funds. Just recognize that the cost of the "premium" is non-recoverable.
That's a very interesting idea that I have no intention of implementating. :D
by Doc
Mon Sep 10, 2018 6:45 pm
Forum: Investing - Theory, News & General
Topic: Short Term Market Uncertainty - "Buy" Insurance?
Replies: 33
Views: 2117

Re: Short Term Market Uncertainty - "Buy" Insurance?

This is my reasoning a well, but shouldn't you then exchange your short term corporate bonds for the intermediate treasuries instead of short treasuries? Maybe. It might be a trade-off between more bang for the buck wrt to an equity crash but would hurt if there was no crash and longer term interes...
by Doc
Mon Sep 10, 2018 4:46 pm
Forum: Investing - Theory, News & General
Topic: Tax loss harvesting - wash sale rule
Replies: 57
Views: 3292

Re: Tax loss harvesting - wash sale rule

Nevertheless this is readily avoidable by buying alternate funds/ETFs that maintain your exposure to the asset class but are very likely not “substantially identical.” Agreed. The reason I usually do TLH using replacement assets in tax advantaged is so that I can restore my original position after ...
by Doc
Mon Sep 10, 2018 4:42 pm
Forum: Investing - Theory, News & General
Topic: Short Term Market Uncertainty - "Buy" Insurance?
Replies: 33
Views: 2117

Re: Short Term Market Uncertainty - "Buy" Insurance?

Changing one's bond suballocation is an asset allocation change, so changing this would be considered market timing. I have changed nothing about my allocation -- buying insurance is selling potential for growth. In fact I will be buying more stocks (in line with my 90%+ stock asset allocation) in ...
by Doc
Mon Sep 10, 2018 4:32 pm
Forum: Investing - Theory, News & General
Topic: Short Term Market Uncertainty - "Buy" Insurance?
Replies: 33
Views: 2117

Re: Short Term Market Uncertainty - "Buy" Insurance?

Still, moving 10% of a portfolio from one asset to another asset that is highly correlated with the first is not going to move the needle one way or another. It'll barely amount to rounding error EVEN IF you time it perfectly with a market crash. Your analysis assumes that Treasuries and corporates...
by Doc
Mon Sep 10, 2018 4:20 pm
Forum: Investing - Theory, News & General
Topic: Short Term Market Uncertainty - "Buy" Insurance?
Replies: 33
Views: 2117

Re: Short Term Market Uncertainty - "Buy" Insurance?

... so it is hard for me to take equity risk off the table without taxes or significant balanced fund moves. I'm keeping an eye on things though. I'm not trying to take risk "off the table". I'm just trying to be in a better position to respond when/if that equity risk appears. Several factors are ...
by Doc
Mon Sep 10, 2018 3:10 pm
Forum: Investing - Theory, News & General
Topic: Tax loss harvesting - wash sale rule
Replies: 57
Views: 3292

Re: Tax loss harvesting - wash sale rule

Doc wrote: ↑Sun Sep 09, 2018 6:34 pm I don't want the guv to take away my tax loss for now and never let me get it back when I sell my replacement sales. That is a risk if replacement shares are in tax-advantaged accounts. But that should be readily avoidable by thoughtful arrangement of holdings o...
by Doc
Mon Sep 10, 2018 11:54 am
Forum: Investing - Theory, News & General
Topic: Short Term Market Uncertainty - "Buy" Insurance?
Replies: 33
Views: 2117

Re: Short Term Market Uncertainty - "Buy" Insurance?

The difference in a portfolio created from moving 10% of assets from bonds with a 5 year duration to bonds with a 1 year duration is barely measurable. In the subprime crisis, it would have been the difference between a portfolio that dropped 41.6% and one that dropped 42.2%. It's not a duration ch...
by Doc
Mon Sep 10, 2018 10:53 am
Forum: Investing - Theory, News & General
Topic: Short Term Market Uncertainty - "Buy" Insurance?
Replies: 33
Views: 2117

Re: Short Term Market Uncertainty - "Buy" Insurance?

Watching the news recently has caused me to be concerned That's your problem right there. Ha ha. :D I actually thought that I would get several comments along this type of line and was pleasantly surprised that I got so few. Bogleheads 101: Buy the three "total market funds" market and never look a...
by Doc
Mon Sep 10, 2018 10:46 am
Forum: Investing - Theory, News & General
Topic: Short Term Market Uncertainty - "Buy" Insurance?
Replies: 33
Views: 2117

Re: Short Term Market Uncertainty - "Buy" Insurance?

Don't you think moving 10% of part of your portfolio from bonds to shorter duration bonds is a pretty minor change? All of the bonds in my portfolio are currently in TRowe Price Stable value fund which allows me zero worry about any losses on the bond side. Right it is a minor change "about any los...
by Doc
Mon Sep 10, 2018 10:42 am
Forum: Investing - Theory, News & General
Topic: Tax loss harvesting - wash sale rule
Replies: 57
Views: 3292

Re: Tax loss harvesting - wash sale rule

The IRS has given guidance on mutual funds in the past. That's very interesting. What is the guidence? Do you have a source? I was referring to IRS publication 564 which said that two mutual funds can not be considered as substantially identical. This was guidance in the past. Whether it is applica...
by Doc
Mon Sep 10, 2018 7:20 am
Forum: Investing - Theory, News & General
Topic: Tax loss harvesting - wash sale rule
Replies: 57
Views: 3292

Re: Tax loss harvesting - wash sale rule

Nate79 wrote:
Sun Sep 09, 2018 7:04 pm
The IRS has given guidance on mutual funds in the past.
That's very interesting. What is the guidence? Do you have a source?
by Doc
Sun Sep 09, 2018 6:34 pm
Forum: Investing - Theory, News & General
Topic: Tax loss harvesting - wash sale rule
Replies: 57
Views: 3292

Re: Tax loss harvesting - wash sale rule

As far as mutual funds are concerned substantially identical means basically the same index for index funds. There is no evidence that this is the case. In fact, I don't agree with it. I had no qualms about doing a TLH by selling VOO and buying IVV (two S&P 500 index ETFs). The bottom line is that ...
by Doc
Sun Sep 09, 2018 10:49 am
Forum: Investing - Theory, News & General
Topic: Short Term Market Uncertainty - "Buy" Insurance?
Replies: 33
Views: 2117

Short Term Market Uncertainty - "Buy" Insurance?

Watching the news recently has caused me to be concerned that the probability of a stock market correction or bear market is currently higher than normal. Without starting a discussion of the news itself the areas of concern are upcoming elections, trade wars and yield curve inversion. Does it make ...
by Doc
Sun Sep 09, 2018 8:12 am
Forum: Investing - Theory, News & General
Topic: Tax loss harvesting - wash sale rule
Replies: 57
Views: 3292

Re: Tax loss harvesting - wash sale rule

I think using correlation is not a good measure. Substantially identical funds implies they have high correlation. The converse may not be true. Agreed. As I recall the IRS "guidance" involves things like selling a stock at a loss and buying a call option for the same stock. Here you have exactly t...
by Doc
Sat Sep 08, 2018 6:24 pm
Forum: Investing - Theory, News & General
Topic: Tax loss harvesting - wash sale rule
Replies: 57
Views: 3292

Re: Tax loss harvesting - wash sale rule

I am planning on selling my TBM shares this year to harvest the recent losses for tax purposes but I am wondering something. Clearly I cannot invest back into TBM for 30 days or become subject to the wash sale rule. But what if I sold TBM and bought a somewhat similar fund such as the intermediate ...
by Doc
Sat Sep 08, 2018 12:32 pm
Forum: Investing - Theory, News & General
Topic: Is individual Bonds better than Bond Fund?
Replies: 58
Views: 5425

Re: Is individual Bonds better than Bond Fund?

One thing I know about Bogleheads in general is that they can be VERY against individual bonds. It makes sense -- if you hold 5-8 different bonds, that's a lot of risk. OTOH, my advisor at Fidelity recommends holding some bonds individually, as long as they're investment grade. So I don't know whic...
by Doc
Sat Sep 08, 2018 11:09 am
Forum: Investing - Theory, News & General
Topic: Is individual Bonds better than Bond Fund?
Replies: 58
Views: 5425

Re: Is individual Bonds better than Bond Fund?

I think any of the risks in the link @Kevein8698 provided can be mitigated by only buying I Bonds from Treasury Direct and Treasury marketable securities at auction. No individual corporate or municipal bonds for me. Even Vanguard agrees From the article: Mutual funds have little or no advantage ov...
by Doc
Thu Sep 06, 2018 4:22 pm
Forum: Investing - Theory, News & General
Topic: Sell $100 Treasuries on Secondary Market
Replies: 1
Views: 321

Re: Sell $100 Treasuries on Secondary Market

Selling Treasury Bonds You can hold Treasury bonds until they mature or sell them before they mature. To sell a Treasury bond held in TreasuryDirect or Legacy Treasury Direct, first transfer the bond to a bank, broker, or dealer , then ask the bank, broker, or dealer to sell it for you. https://www...
by Doc
Thu Sep 06, 2018 7:38 am
Forum: Investing - Theory, News & General
Topic: Where to reinvest interest payments in bond ladder
Replies: 5
Views: 514

Re: Where to reinvest interest payments in bond ladder

I'm building a ladder of treasury notes from 2 to 10 years maturity. I would want to reinvest all interest payments and I'm just curious: Where in the ladder is it advisable to reinvest the interest payments? (I know there's a lot of debate about bonds vs bond funds but I'd prefer to not get into t...
by Doc
Wed Sep 05, 2018 9:00 am
Forum: Investing - Theory, News & General
Topic: Small-cap exposure in VBR, ie CRSP small-cap value index fund
Replies: 64
Views: 5180

Re: Small-cap exposure in VBR, ie CRSP small-cap value index fund

Sure, but that's easily adjusted. As I'm too lazy to look up the month of the benchmark change, I only changed the year to 2013. The problem with a tool like Portfolio Visualizer or Total Return charts for that matter is that it ignores or hides cyclic performance as is illustrated with the followi...
by Doc
Wed Sep 05, 2018 8:47 am
Forum: Investing - Theory, News & General
Topic: Wash sale question
Replies: 11
Views: 598

Re: Wash sale question

Here's my opinion: If you sell the same day, then you are in trouble. You cannot prove that the IRA shares were sold first, so when you sold in taxable, that's a wash sale. The loss is applied to your IRA sales, then you sell them moments later. The loss is thus applied to you IRA shares which mean...
by Doc
Wed Sep 05, 2018 8:45 am
Forum: Investing - Theory, News & General
Topic: Wash sale question
Replies: 11
Views: 598

Re: Wash sale question

looking wrote:
Wed Sep 05, 2018 7:35 am
i want to learn how it works the wash sale
See Fairmark Wash Sales 101
http://fairmark.com/capgain/wash/ws101.htm
by Doc
Wed Sep 05, 2018 7:00 am
Forum: Investing - Theory, News & General
Topic: Wash sale question
Replies: 11
Views: 598

Re: Wash sale question

That's my understanding as well, you no longer own the "replacement" shares; I believe you are correct (others, please chime in). However, I would wait a day after the IRA shares are sold before selling the taxable account shares, just to be safe. In my case, Schwab's trade confirmations only carry...
by Doc
Tue Sep 04, 2018 7:21 pm
Forum: Investing - Theory, News & General
Topic: Small-cap exposure in VBR, ie CRSP small-cap value index fund
Replies: 64
Views: 5180

Re: Small-cap exposure in VBR, ie CRSP small-cap value index fund

. According to the porfoliovisualizer data, in fact, for the 2013-2018 data small and value premiums were negative: higher loadings on SMB and HML over this period reduced returns. So either there is no SMB premium or the data set is too short. I chose to use the smaller fund JIC it is the recent d...
by Doc
Tue Sep 04, 2018 6:55 pm
Forum: Investing - Theory, News & General
Topic: Wash sale question
Replies: 11
Views: 598

Re: Wash sale question

If the shares you sell in taxable are at a loss you will have a wash sales. The loss is disallowed and the cost basis of the replacement shares should be adjusted accordingly. However since the buy and sell are in separate accounts the broker is relived from making/reporting the adjustment. That lac...
by Doc
Tue Sep 04, 2018 10:07 am
Forum: Investing - Theory, News & General
Topic: 2-Year Treasury Note Auction
Replies: 102
Views: 9508

Re: 2-Year Treasury Note Auction

For any holding period, the YIELD function will slightly understate the magnitude of the return if semi-annual coupons are are reinvested at the original yield. The YIELD function syntax has the following arguments: Settlement Required. The security's settlement date. The security settlement date i...
by Doc
Tue Sep 04, 2018 7:30 am
Forum: Investing - Theory, News & General
Topic: Small-cap exposure in VBR, ie CRSP small-cap value index fund
Replies: 64
Views: 5180

Re: Small-cap exposure in VBR, ie CRSP small-cap value index fund

. According to the porfoliovisualizer data, in fact, for the 2013-2018 data small and value premiums were negative: higher loadings on SMB and HML over this period reduced returns. So either there is no SMB premium or the data set is too short. I chose to use the smaller fund JIC it is the recent d...
by Doc
Mon Sep 03, 2018 8:45 am
Forum: Investing - Theory, News & General
Topic: Small-cap exposure in VBR, ie CRSP small-cap value index fund
Replies: 64
Views: 5180

Re: Small-cap exposure in VBR, ie CRSP small-cap value index fund

. According to the porfoliovisualizer data, in fact, for the 2013-2018 data small and value premiums were negative: higher loadings on SMB and HML over this period reduced returns. So either there is no SMB premium or the data set is too short. I chose to use the smaller fund JIC it is the recent d...
by Doc
Sun Sep 02, 2018 11:51 am
Forum: Investing - Theory, News & General
Topic: What non-Vanguard ETFs will you be looking to buy?
Replies: 62
Views: 6773

Re: What non-Vanguard ETFs will you be looking to buy?

Oddly, most of the rest of the shortfall (~$100) in the M* growth chart for SLYV vs VIOV and IJS seems to have occurred on December 16, 2016, a day when SLYV made a large capital gains distribution. Nope, look at the S&P Small Cap Value index at the time: https://www.etf.com/SLYV#overview https://s...
by Doc
Sun Sep 02, 2018 11:03 am
Forum: Investing - Theory, News & General
Topic: Rebalancing Frequency? Daily vs annually?
Replies: 34
Views: 2469

Re: Rebalancing Frequency? Daily vs annually?

Question for all of you that rebalnce on a calendar basis of some type.

What do you do it the stock market drops 20% in a week? Do you just wait until your next rebalance date or do you it then?
by Doc
Sun Sep 02, 2018 8:05 am
Forum: Investing - Theory, News & General
Topic: Small-cap exposure in VBR, ie CRSP small-cap value index fund
Replies: 64
Views: 5180

Re: Small-cap exposure in VBR, ie CRSP small-cap value index fund

The last column on the alphas is for typical investor's post. For the entire interval there was a noticeable, but not statistically significant, difference in the alphas. For the latest interval that difference has disappeared, and both remain indistinguishable from zero. I am not fluent in alpha s...
by Doc
Sat Sep 01, 2018 7:44 pm
Forum: Investing - Theory, News & General
Topic: Small-cap exposure in VBR, ie CRSP small-cap value index fund
Replies: 64
Views: 5180

Re: Small-cap exposure in VBR, ie CRSP small-cap value index fund

A link to portfolio visualizer for VBR, IJS comparision, https://www.portfoliovisualizer.com/factor-analysis?s=y®ressionType=1&symbols=VBR+IJS&startDate=02%2F01%2F2004&endDate=06%2F19%2F2018&factorDataSet=2&marketArea=0&factorModel=3&useHMLDevFactor=false&includeQualityFactor=true&includeLowBeta...
by Doc
Sat Sep 01, 2018 7:24 pm
Forum: Investing - Theory, News & General
Topic: Withdrawals to Couch Potato Portfolio During Bear Market
Replies: 5
Views: 735

Re: Withdrawals to Couch Potato Portfolio During Bear Market

FIREchief wrote:
Sat Sep 01, 2018 7:00 pm
How are we defining "bear market?"
Definition of bear market: Period in which prices of securities or commodities fall by 20 percent or more.
Yhttp://www.businessdictionary.com/definition/bear-market.html
by Doc
Sat Sep 01, 2018 4:47 pm
Forum: Investing - Theory, News & General
Topic: 2-Year Treasury Note Auction
Replies: 102
Views: 9508

Re: 2-Year Treasury Note Auction

As you imply for a very short period an approximation is likely sufficient. And for a very long period, the reinvestment rate is quite uncertain, so your realized return could deviate from the initial yield to maturity by a fair amount, even if you hold to maturity. Of course a zero-coupon bond eli...
by Doc
Sat Sep 01, 2018 2:27 pm
Forum: Investing - Theory, News & General
Topic: 2-Year Treasury Note Auction
Replies: 102
Views: 9508

Re: 2-Year Treasury Note Auction

Seems to me that this is more a function of the assumed reinvestment rate on the coupons over the long holding period, rather than the amount of premium or discount to par. I wouldn't use the simplified calculation that I used for a 1-year holding period for a 30-year holding period. For the 1-year...
by Doc
Fri Aug 31, 2018 6:29 am
Forum: Investing - Theory, News & General
Topic: Taxable account cost basis. Specific ID, FIFO or average cost?
Replies: 18
Views: 1304

Re: Taxable account cost basis. Specific ID, FIFO or average cost?

kaneohe wrote:
Fri Aug 31, 2018 12:18 am
not very arcane............right there at the beginning of the ST and LT sections of the 8949
https://www.irs.gov/pub/irs-pdf/f8949.pdf
I never even looked at that section of the code until the link was posted yesterday. it's arcane to me. :D
by Doc
Thu Aug 30, 2018 7:11 pm
Forum: Investing - Theory, News & General
Topic: Tax consequence of BND really that bad in taxable?
Replies: 24
Views: 2215

Re: Tax consequence of BND really that bad in taxable?

Treasuries might have a better diversification benefit than munis, but that is at a significant cost; the two funds I chose for example purposes have about the same yield in a 25% tax bracket My point was do not compare a Total Bond Market fund with Treasuries but to break up that TBM fund into say...
by Doc
Thu Aug 30, 2018 6:52 pm
Forum: Investing - Theory, News & General
Topic: Taxable account cost basis. Specific ID, FIFO or average cost?
Replies: 18
Views: 1304

Re: Taxable account cost basis. Specific ID, FIFO or average cost?

Even easier, if the basis is reported to the IRS, and you don’t need to make any adjustments, you can aggregate the numbers right on Schedule D without using an 8949 at all. https://www.irs.gov/pub/irs-pdf/i8949.pdf TurboTax made me do it. :D :( Having been through at least eight IRS or state audit...
by Doc
Thu Aug 30, 2018 3:57 pm
Forum: Investing - Theory, News & General
Topic: Taxable account cost basis. Specific ID, FIFO or average cost?
Replies: 18
Views: 1304

Re: Taxable account cost basis. Specific ID, FIFO or average cost?

"If you sell a block of stock ..." I don't sell a "block" of stock. I sell individual lots in order to minimize the tax bite. If you were to import your data from Vanguard (assuming TurboTax), wouldn't it do this for you automatically? Even if you're doing it manually, is it really that big of a de...
by Doc
Thu Aug 30, 2018 2:50 pm
Forum: Investing - Theory, News & General
Topic: Taxable account cost basis. Specific ID, FIFO or average cost?
Replies: 18
Views: 1304

Re: Taxable account cost basis. Specific ID, FIFO or average cost?

"If you sell a block of stock ..."

I don't sell a "block" of stock. I sell individual lots in order to minimize the tax bite.
by Doc
Thu Aug 30, 2018 2:47 pm
Forum: Investing - Theory, News & General
Topic: Tax consequence of BND really that bad in taxable?
Replies: 24
Views: 2215

Re: Tax consequence of BND really that bad in taxable?

Definitely munis, preferring munis from your state if Vanguard has a fund. Your tax rate on taxable bonds is 40.8% federal, and 6% state if they aren't Treasuries. You pay no federal tax on munis. The OP specified an 80/20 AA. With that high an equity component the main purpose of the FI is to offs...
by Doc
Thu Aug 30, 2018 2:36 pm
Forum: Investing - Theory, News & General
Topic: Why do people buy ETFs in taxable with Vanguard when the ETF tracks an equivalent index fund?
Replies: 29
Views: 2496

Re: Why do people buy ETFs in taxable with Vanguard when the ETF tracks an equivalent index fund?

ETFs allow a fund to avoid capital gains distributions to an extent. The Vanguard system makes the ETFs and mutual funds identical as far as that goes. However, any ETF can have distributions depending on circumstances. VSS and its equivalent traditional fund VFSVX had short-term capital gains dist...
by Doc
Thu Aug 30, 2018 2:33 pm
Forum: Investing - Theory, News & General
Topic: Taxable account cost basis. Specific ID, FIFO or average cost?
Replies: 18
Views: 1304

Re: Taxable account cost basis. Specific ID, FIFO or average cost?

SpecID and reinvest dividends. SpecID because it provides the most flexibility when selling. Reinvest dividends because computers make dealing with multiple lots trivial, and it's just easier. Others may have different perceptions. I have a different perception. Reinvesting monthly dividends are go...
by Doc
Wed Aug 29, 2018 6:40 pm
Forum: Investing - Theory, News & General
Topic: Why do people buy ETFs in taxable with Vanguard when the ETF tracks an equivalent index fund?
Replies: 29
Views: 2496

Re: Why do people buy ETFs in taxable with Vanguard when the ETF tracks an equivalent index fund?

The other nice thing is that they allow tax-gain harvesting into the same fund; the mechanism is a sell and immediate re-buy to reset the basis. This is not possible with mutual funds without a change of asset allocation. Whoa. It is my understanding that brokers are only required to report wash sa...