I am buying $2000 VFIAX everyday. Am I in trouble

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newyorker
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I am buying $2000 VFIAX everyday. Am I in trouble

Post by newyorker »

I have Vanguard automatic investment for $2000 of VFIAX everyday. I dont plan to withdraw it in near future but when I do, am I in trouble for accounting purpose?
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Re: I am buying $2000 VFIAX everyday. Am I in trouble

Post by livesoft »

No, you are not in trouble. Not even for accounting purpose.
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Re: I am buying $2000 VFIAX everyday. Am I in trouble

Post by whodidntante »

If your concern is your tax return, don't worry. It's not that bad.
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Re: I am buying $2000 VFIAX everyday. Am I in trouble

Post by MotoTrojan »

Not a big deal. Curious why? And for how long will this last?

Wish I could join you.
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Re: I am buying $2000 VFIAX everyday. Am I in trouble

Post by austin757 »

What a question
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Re: I am buying $2000 VFIAX everyday. Am I in trouble

Post by aj76er »

newyorker wrote: Mon Sep 07, 2020 12:25 pm I have Vanguard automatic investment for $2000 of VFIAX everyday. I dont plan to withdraw it in near future but when I do, am I in trouble for accounting purpose?
365 lots per year could be a lot to manage when it’s time to sell. Note that this only matters if you want to withdraw in the most tax efficient way. If you just do FIFO or average cost basis then it really doesn’t matter.

You could switch to weekly ($14k per week), which leaves you with only 52 lots per year.
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Re: I am buying $2000 VFIAX everyday. Am I in trouble

Post by novemberrain »

Why VFIAX and not VTSAX ?
I also buy about 250-300 times a year. What sort of tax problems were you thinking about ?
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Re: I am buying $2000 VFIAX everyday. Am I in trouble

Post by l1am »

congrats
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Re: I am buying $2000 VFIAX everyday. Am I in trouble

Post by mega317 »

Yesterday the OP was worried that a PC to run flight simulator would be too expensive.
https://www.bogleheads.org/forum/viewtopic.php?t=6212
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Re: I am buying $2000 VFIAX everyday. Am I in trouble

Post by Xrayman69 »

No issues. Vanguard has easy ability to identify each individual lot even for TLH purposes. It’s check the box of the lot and sell or convert. The lots that are at a loss and viable for TLH are highlighted in red on my screen.
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Re: I am buying $2000 VFIAX everyday. Am I in trouble

Post by whodidntante »

mega317 wrote: Mon Sep 07, 2020 2:03 pm Yesterday the OP was worried that a PC to run flight simulator would be too expensive.
That would be a fantastic application of virtual reality.
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Re: I am buying $2000 VFIAX everyday. Am I in trouble

Post by terran »

I assume this is a dollar cost averaging thing? I wouldn't DCA at all (lump sum all the way), but even if you really want to DCA, doing it daily seems excessive.
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Re: I am buying $2000 VFIAX everyday. Am I in trouble

Post by abuss368 »

newyorker wrote: Mon Sep 07, 2020 12:25 pm I have Vanguard automatic investment for $2000 of VFIAX everyday. I dont plan to withdraw it in near future but when I do, am I in trouble for accounting purpose?
No at all. Perhaps simply make it a weekly investment.
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newyorker
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Re: I am buying $2000 VFIAX everyday. Am I in trouble

Post by newyorker »

aj76er wrote: Mon Sep 07, 2020 12:48 pm
newyorker wrote: Mon Sep 07, 2020 12:25 pm I have Vanguard automatic investment for $2000 of VFIAX everyday. I dont plan to withdraw it in near future but when I do, am I in trouble for accounting purpose?
365 lots per year could be a lot to manage when it’s time to sell. Note that this only matters if you want to withdraw in the most tax efficient way. If you just do FIFO or average cost basis then it really doesn’t matter.

You could switch to weekly ($14k per week), which leaves you with only 52 lots per year.

Its about 250 lots a year (monday to friday). Yes I meant in terms of future withdrawal.
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Re: I am buying $2000 VFIAX everyday. Am I in trouble

Post by Robert20 »

newyorker wrote: Mon Sep 07, 2020 12:25 pm I have Vanguard automatic investment for $2000 of VFIAX everyday. I dont plan to withdraw it in near future but when I do, am I in trouble for accounting purpose?
This month I am doing $100 per day... Lets see how that goes..
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newyorker
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Re: I am buying $2000 VFIAX everyday. Am I in trouble

Post by newyorker »

mega317 wrote: Mon Sep 07, 2020 2:03 pm Yesterday the OP was worried that a PC to run flight simulator would be too expensive.


I didnt mean it like that. I was a market timer dumb guy and just investing my saved up cash DCA. 2k for computer is a different story. Its a depreciating asset.
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Re: I am buying $2000 VFIAX everyday. Am I in trouble

Post by newyorker »

novemberrain wrote: Mon Sep 07, 2020 1:32 pm Why VFIAX and not VTSAX ?
I also buy about 250-300 times a year. What sort of tax problems were you thinking about ?

I just have more liking for s&p 500. I know past performance doesnt guarantee anything but didnt vtsax have inferior performance?
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Re: I am buying $2000 VFIAX everyday. Am I in trouble

Post by CardioMD »

newyorker wrote: Mon Sep 07, 2020 3:06 pm
mega317 wrote: Mon Sep 07, 2020 2:03 pm Yesterday the OP was worried that a PC to run flight simulator would be too expensive.


I didnt mean it like that. I was a market timer dumb guy and just investing my saved up cash DCA. 2k for computer is a different story. Its a depreciating asset.
I agree. I’ll have no issue investing $10,000 in FXAIX on a whim but can’t bring myself to buy a $3,000 PC to run the new Microsoft Flight Simulator. I have my PPL but rarely get to fly anymore. The new sim is incredible.
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Re: I am buying $2000 VFIAX everyday. Am I in trouble

Post by Rowan Oak »

newyorker wrote: Mon Sep 07, 2020 12:25 pm I have Vanguard automatic investment for $2000 of VFIAX everyday. I dont plan to withdraw it in near future but when I do, am I in trouble for accounting purpose?
I've never seen "everyday" as an option for Vanguard automatic investments. Weekly is the shortest time interval between each automatic investment. If this is setup at another brokerage I hope you're not paying fees each time you buy Vanguard 500 Index Fund Admiral Shares (VFIAX).

Of course, I may be misunderstanding and you mean that each day you manually put in an order for $2000 of Vanguard 500 Index Fund Admiral Shares (VFIAX) and are calling that automatic.
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newyorker
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Re: I am buying $2000 VFIAX everyday. Am I in trouble

Post by newyorker »

Rowan Oak wrote: Mon Sep 07, 2020 5:47 pm
newyorker wrote: Mon Sep 07, 2020 12:25 pm I have Vanguard automatic investment for $2000 of VFIAX everyday. I dont plan to withdraw it in near future but when I do, am I in trouble for accounting purpose?
I've never seen "everyday" as an option for Vanguard automatic investments. Weekly is the shortest time interval between each automatic investment. If this is setup at another brokerage I hope you're not paying fees each time you buy Vanguard 500 Index Fund Admiral Shares (VFIAX).

Of course, I may be misunderstanding and you mean that each day you manually put in an order for $2000 of Vanguard 500 Index Fund Admiral Shares (VFIAX) and are calling that automatic.


You can do 5 of the weekly investments. I have one each for Mon to Fri.
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Re: I am buying $2000 VFIAX everyday. Am I in trouble

Post by Stinky »

This sounds like DCA on steroids - both frequency and aggregate amount.
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Re: I am buying $2000 VFIAX everyday. Am I in trouble

Post by Compound »

Shouldn’t be a problem for accounting purposes, but it may get a bit tedious sifting through all the tax lots if you have a tax loss harvesting opportunity in your future. How long do you plan on keeping this up for? Have you considered lowering the DCA frequency (weekly? monthly?) with a corresponding increased amount?
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Re: I am buying $2000 VFIAX everyday. Am I in trouble

Post by Rowan Oak »

newyorker wrote: Mon Sep 07, 2020 6:38 pm
Rowan Oak wrote: Mon Sep 07, 2020 5:47 pm
newyorker wrote: Mon Sep 07, 2020 12:25 pm I have Vanguard automatic investment for $2000 of VFIAX everyday. I dont plan to withdraw it in near future but when I do, am I in trouble for accounting purpose?
I've never seen "everyday" as an option for Vanguard automatic investments. Weekly is the shortest time interval between each automatic investment. If this is setup at another brokerage I hope you're not paying fees each time you buy Vanguard 500 Index Fund Admiral Shares (VFIAX).

Of course, I may be misunderstanding and you mean that each day you manually put in an order for $2000 of Vanguard 500 Index Fund Admiral Shares (VFIAX) and are calling that automatic.


You can do 5 of the weekly investments. I have one each for Mon to Fri.
Got it. Since that is possible I don't know why Vanguard doesn't just make daily an option.
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Re: I am buying $2000 VFIAX everyday. Am I in trouble

Post by pkcrafter »

newyorker wrote: Mon Sep 07, 2020 12:25 pm I have Vanguard automatic investment for $2000 of VFIAX everyday. I dont plan to withdraw it in near future but when I do, am I in trouble for accounting purpose?
I don't understand the purpose of doing this.

What are you trying to accomplish?
How long are you going to do it, or how much cash do you have to invest?
Is this money related to daily income from your practice?
Do you have any other funds?

Paul
Last edited by pkcrafter on Mon Sep 07, 2020 7:35 pm, edited 1 time in total.
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Re: I am buying $2000 VFIAX everyday. Am I in trouble

Post by newyorker »

pkcrafter wrote: Mon Sep 07, 2020 7:16 pm
newyorker wrote: Mon Sep 07, 2020 12:25 pm I have Vanguard automatic investment for $2000 of VFIAX everyday. I dont plan to withdraw it in near future but when I do, am I in trouble for accounting purpose?
I don't understand the purpose of doing this.

What are you trying to accomplish?
How long are you going to do it, or how much cash do you have to invest?
Do you have any other funds?

Paul
I have around 1 mil. Maybe should up it to 4k a day.


Only reason I am doing this is for my sanity. 2k a day feels better than 10k a week. Must my mental thing.
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Re: I am buying $2000 VFIAX everyday. Am I in trouble

Post by gonefishing01 »

This is good trouble. Grats
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Re: I am buying $2000 VFIAX everyday. Am I in trouble

Post by pkcrafter »

newyorker wrote: Mon Sep 07, 2020 7:20 pm
pkcrafter wrote: Mon Sep 07, 2020 7:16 pm
newyorker wrote: Mon Sep 07, 2020 12:25 pm I have Vanguard automatic investment for $2000 of VFIAX everyday. I dont plan to withdraw it in near future but when I do, am I in trouble for accounting purpose?
I don't understand the purpose of doing this.

What are you trying to accomplish?
How long are you going to do it, or how much cash do you have to invest?
Do you have any other funds?

Paul
I have around 1 mil. Maybe should up it to 4k a day.

Only reason I am doing this is for my sanity. 2k a day feels better than 10k a week. Must my mental thing.
Do you have an investment plan and an overall asset allocation? What is your chosen overall asset allocation?
2k a day feels better than 10k a week. Must be a mental thing.
"Feels better", ahh. Now it sounds like you are risk averse, and yes, it's definitely a mental thing, but it certainly isn't unusual.

So, what is your overall investment strategy, including specific funds?

Paul
When times are good, investors tend to forget about risk and focus on opportunity. When times are bad, investors tend to forget about opportunity and focus on risk.
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Re: I am buying $2000 VFIAX everyday. Am I in trouble

Post by arcticpineapplecorp. »

newyorker wrote: Mon Sep 07, 2020 3:09 pm
novemberrain wrote: Mon Sep 07, 2020 1:32 pm Why VFIAX and not VTSAX ?
I also buy about 250-300 times a year. What sort of tax problems were you thinking about ?

I just have more liking for s&p 500. I know past performance doesnt guarantee anything but didnt vtsax have inferior performance?
you tell me. what do you see? vtsax only goes back to 4/27/1992 so can't compare that to vfiax before that. but since that date (to present) which did better? vtsax below in blue and vfiax below in orange:

Image

source:
http://quotes.morningstar.com/chart/fun ... A%5B%5D%7D
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Re: I am buying $2000 VFIAX everyday. Am I in trouble

Post by Que1999 »

Throw it all in there and be done with it.

:sharebeer
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Re: I am buying $2000 VFIAX everyday. Am I in trouble

Post by Fallible »

pkcrafter wrote: Mon Sep 07, 2020 7:49 pm
newyorker wrote: Mon Sep 07, 2020 7:20 pm
pkcrafter wrote: Mon Sep 07, 2020 7:16 pm
newyorker wrote: Mon Sep 07, 2020 12:25 pm I have Vanguard automatic investment for $2000 of VFIAX everyday. I dont plan to withdraw it in near future but when I do, am I in trouble for accounting purpose?
I don't understand the purpose of doing this.

What are you trying to accomplish?
How long are you going to do it, or how much cash do you have to invest?
Do you have any other funds?
Paul
I have around 1 mil. Maybe should up it to 4k a day.

Only reason I am doing this is for my sanity. 2k a day feels better than 10k a week. Must my mental thing.
Do you have an investment plan and an overall asset allocation? What is your chosen overall asset allocation?
2k a day feels better than 10k a week. Must be a mental thing.
"Feels better", ahh. Now it sounds like you are risk averse, and yes, it's definitely a mental thing, but it certainly isn't unusual.

So, what is your overall investment strategy, including specific funds?
Paul
I would add this question to Paul's good ones regarding an overall investment plan: OP, you say you don't plan to withdraw the money in the "near future." How long is that - 10 years, 15, 20, or a yet-to-be-determined date?
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Re: I am buying $2000 VFIAX everyday. Am I in trouble

Post by ruralavalon »

newyorker wrote: Mon Sep 07, 2020 3:09 pm
novemberrain wrote: Mon Sep 07, 2020 1:32 pm Why VFIAX and not VTSAX ?
I also buy about 250-300 times a year. What sort of tax problems were you thinking about ?

I just have more liking for s&p 500. I know past performance doesnt guarantee anything but didnt vtsax have inferior performance?
The two funds have had almost identical performance.

In some time periods each has done a little better than the other, but over the 28 years since the creation of the first total stock market index fund the two types of funds have had almost identical performance.
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Re: I am buying $2000 VFIAX everyday. Am I in trouble

Post by LiveSimple »

Robert20 wrote: Mon Sep 07, 2020 2:50 pm
newyorker wrote: Mon Sep 07, 2020 12:25 pm I have Vanguard automatic investment for $2000 of VFIAX everyday. I dont plan to withdraw it in near future but when I do, am I in trouble for accounting purpose?
This month I am doing $100 per day... Lets see how that goes..
Yes it is fun to do something like this, I have done this as well with $100
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newyorker
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Re: I am buying $2000 VFIAX everyday. Am I in trouble

Post by newyorker »

Fallible wrote: Tue Sep 08, 2020 12:14 pm
pkcrafter wrote: Mon Sep 07, 2020 7:49 pm
newyorker wrote: Mon Sep 07, 2020 7:20 pm
pkcrafter wrote: Mon Sep 07, 2020 7:16 pm
newyorker wrote: Mon Sep 07, 2020 12:25 pm I have Vanguard automatic investment for $2000 of VFIAX everyday. I dont plan to withdraw it in near future but when I do, am I in trouble for accounting purpose?
I don't understand the purpose of doing this.

What are you trying to accomplish?
How long are you going to do it, or how much cash do you have to invest?
Do you have any other funds?
Paul
I have around 1 mil. Maybe should up it to 4k a day.

Only reason I am doing this is for my sanity. 2k a day feels better than 10k a week. Must my mental thing.
Do you have an investment plan and an overall asset allocation? What is your chosen overall asset allocation?
2k a day feels better than 10k a week. Must be a mental thing.
"Feels better", ahh. Now it sounds like you are risk averse, and yes, it's definitely a mental thing, but it certainly isn't unusual.

So, what is your overall investment strategy, including specific funds?
Paul
I would add this question to Paul's good ones regarding an overall investment plan: OP, you say you don't plan to withdraw the money in the "near future." How long is that - 10 years, 15, 20, or a yet-to-be-determined date?

Im thinking 30 years. Im 32 now.

Maybe do this for 2 years and once im out of my money, just do remaining money from my income into the market. I live in LCOL upstate ny so houses cost 130k ish and etc. im trying to have all but 300k cash in.
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Re: I am buying $2000 VFIAX everyday. Am I in trouble

Post by cpan00b »

this is a great idea lol. I've been doing 2500 a week, but maybe I should change to $500/day with the strategy you outlined (i.e. do weekly auto investment for each day of the week). I have no intention of selling for 20+ years and I have it as average cost instead of specific taxid lots so I think it won't matter?
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Re: I am buying $2000 VFIAX everyday. Am I in trouble

Post by Texanbybirth »

You've got $2k to invest per day. You're in a good place. :beer

(I personally would never do this. If I were the type to DCA, I would go with a monthly investment of a much larger chunk, say spread out over a year.)
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Re: I am buying $2000 VFIAX everyday. Am I in trouble

Post by Robert20 »

LiveSimple wrote: Tue Sep 08, 2020 1:00 pm
Robert20 wrote: Mon Sep 07, 2020 2:50 pm
newyorker wrote: Mon Sep 07, 2020 12:25 pm I have Vanguard automatic investment for $2000 of VFIAX everyday. I dont plan to withdraw it in near future but when I do, am I in trouble for accounting purpose?
This month I am doing $100 per day... Lets see how that goes..
Yes it is fun to do something like this, I have done this as well with $100
Well.. its not fun part actually... I was buying 1st and 15th every month.

Now market being volatile, I am buying every day (atleast some days, I am buying at very low price) - by month end, I would be investing same amount. (2K).
index245
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Re: I am buying $2000 VFIAX everyday. Am I in trouble

Post by index245 »

newyorker wrote: Tue Sep 08, 2020 1:13 pm
Fallible wrote: Tue Sep 08, 2020 12:14 pm
pkcrafter wrote: Mon Sep 07, 2020 7:49 pm
newyorker wrote: Mon Sep 07, 2020 7:20 pm
pkcrafter wrote: Mon Sep 07, 2020 7:16 pm
I don't understand the purpose of doing this.

What are you trying to accomplish?
How long are you going to do it, or how much cash do you have to invest?
Do you have any other funds?
Paul
I have around 1 mil. Maybe should up it to 4k a day.

Only reason I am doing this is for my sanity. 2k a day feels better than 10k a week. Must my mental thing.
Do you have an investment plan and an overall asset allocation? What is your chosen overall asset allocation?
2k a day feels better than 10k a week. Must be a mental thing.
"Feels better", ahh. Now it sounds like you are risk averse, and yes, it's definitely a mental thing, but it certainly isn't unusual.

So, what is your overall investment strategy, including specific funds?
Paul
I would add this question to Paul's good ones regarding an overall investment plan: OP, you say you don't plan to withdraw the money in the "near future." How long is that - 10 years, 15, 20, or a yet-to-be-determined date?

Im thinking 30 years. Im 32 now.

Maybe do this for 2 years and once im out of my money, just do remaining money from my income into the market. I live in LCOL upstate ny so houses cost 130k ish and etc. im trying to have all but 300k cash in.
Lump sum at 60/40 or 50/50. If you have to break it up into daily chunks rather than even a weekly sum, a 100% stock allocation does not sound appropriate relative to your risk tolerance. Good luck to you, you'll do fine either way.
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