My plan was and will be again buy FXAIX in the way down, the way up, and everywhere in between.
100% FXAIX
Maybe I'm misunderstanding what you wrote. If your Asset Allocation is 100% FXAIX, how did you have money to buy all the way down and now all the way back up? Unless what you are saying is that you've been buying all this while with current income (only)... and not with saved up money.CardioMD wrote: ↑Sat Jun 20, 2020 7:04 pm100% FXAIX
It's very possible the buying is being.done with 401k or similar regular retirement plan contributions.an_asker wrote: ↑Sat Jun 20, 2020 7:54 pmMaybe I'm misunderstanding what you wrote. If your Asset Allocation is 100% FXAIX, how did you have money to buy all the way down and now all the way back up? Unless what you are saying is that you've been buying all this while with current income (only)... and not with saved up money.CardioMD wrote: ↑Sat Jun 20, 2020 7:04 pm100% FXAIX
Yes, that is correct. I have an income and after all bills are paid the rest gets invested.an_asker wrote: ↑Sat Jun 20, 2020 7:54 pmMaybe I'm misunderstanding what you wrote. If your Asset Allocation is 100% FXAIX, how did you have money to buy all the way down and now all the way back up? Unless what you are saying is that you've been buying all this while with current income (only)... and not with saved up money.CardioMD wrote: ↑Sat Jun 20, 2020 7:04 pm100% FXAIX
Got itCardioMD wrote: ↑Sat Jun 20, 2020 8:12 pmYes, that is correct. I have an income and after all bills are paid the rest gets invested.an_asker wrote: ↑Sat Jun 20, 2020 7:54 pmMaybe I'm misunderstanding what you wrote. If your Asset Allocation is 100% FXAIX, how did you have money to buy all the way down and now all the way back up? Unless what you are saying is that you've been buying all this while with current income (only)... and not with saved up money.
I also sold some of my holdings during the crash. I rebought my way back in, some of it for a lower price, some of it for a higher price. The end result is probably break even and a boatload of stress.
Yes ..I’m still in recovery from the stress ..and I’m sure there’s more coming but now I feel more prepared for it.YRT70 wrote: ↑Sun Jun 21, 2020 9:31 amI also sold some of my holdings during the crash. I rebought my way back in, some of it for a lower price, some of it for a higher price. The end result is probably break even and a boatload of stress.
I took only one action during that period at Vanguard, which looked to Vanguard like a sell but wasn't. I sold stock to harvest a capital loss, and withdrew the money in cash to pay off my mortgage. However, I moved an equal amount from bonds to stock in my employer plan, so I kept the same dollar amount in stock.
David GrabinerStaying the course also means not chasing performance and avoiding recency bias when it comes to your asset allocation: viewtopic.php?p=5320546J G Bankerton wrote: ↑Sat Jun 20, 2020 3:41 pm It was nice to only have to have doubts for a few months and now we don't have to agonize over when to get back into stocks. Enjoy.
As the S&P 500 plunged from its all-time high earlier this year, money-market funds—...—saw their assets under management jump by 20%, or as much as $685 billion, in March, posting the highest monthly inflow in at least three decades.
Vanguard says most investors 'staying the course'
I got lucky also as I rebalanced into VTSAX on March 24th. It was only due to following my IPS stating 5% bands.Clever_Username wrote: ↑Sun Jun 21, 2020 6:58 am Hmmm... I took action shortly after March 20, but that was to re-balance into stocks. It appears I had good timing, but that wasn't why I did it.
Same thing here. I use the 5/25 rule for major asset classes, and my target bond allocation is 12%, so when it hit 15% right at the market bottom, I needed to rebalance. It hasn't gone back below 9% yet to trigger a rebalance the other way.
David Grabiner
I checked with Vanguard and they made the implicit explicit. What I did was explicitly prudent.02nz wrote: ↑Sun Jun 21, 2020 11:05 am Staying the course also means not chasing performance and avoiding recency bias when it comes to your asset allocation: viewtopic.php?p=5320546
I use VTI and VOO for my TLH and am not out of the market for more than 15 seconds.calvin+hobbes wrote: ↑Sun Jun 21, 2020 2:26 pm I tax loss harvested equities (Into similar equities) 3x in Late Feb and March. Wonder if they count me in the 90+% that held.
As did I, and I am curious how Vanguard’s analysis accounted for this since the transaction involved selling of equities. I happened to exchange VTSAX for VFIAX but what if I exchanged it for a target date fund that had some bonds? Seems like there would be some grey areas.J G Bankerton wrote: ↑Sun Jun 21, 2020 2:38 pmI use VTI and VOO for my TLH and am not out of the market for more than 15 seconds.calvin+hobbes wrote: ↑Sun Jun 21, 2020 2:26 pm I tax loss harvested equities (Into similar equities) 3x in Late Feb and March. Wonder if they count me in the 90+% that held.
The IRS say to avoid a wash sale the securities involved have to be substantially different. VTI and VOO are close, only a few bases points different over the years but they are different enough to pass the IRS definition. I go by what Vanguard does with the sale. Vanguard has put losses back on purchases I made if they say it was a wash sale. I never had losses put back when trading VTI and VOO; I have done this for years and the IRS has not disallowed it.calvin+hobbes wrote: ↑Sun Jun 21, 2020 4:01 pm As did I, and I am curious how Vanguard’s analysis accounted for this since the transaction involved selling of equities. I happened to exchange VTSAX for VFIAX but what if I exchanged it for a target date fund that had some bonds? Seems like there would be some grey areas.
Brokerages are only required to report wash sales on identical securities in the same account. Vanguard won't flag if you sell VTI in your taxable account and buy it in your IRA, or your spouse buys it in an IRA (and Vanguard may not even know who your spouse is), or you buy VTSAX (the mutual fund class of the same fund); all of these are unambiguously wash sales. It is your tax advisor's responsibility to identify any other wash sales, which occur when you sell and buy "substantially identical" securities.J G Bankerton wrote: ↑Sun Jun 21, 2020 4:20 pmThe IRS say to avoid a wash sale the securities involved have to be substantially different. VTI and VOO are close, only a few bases points different over the years but they are different enough to pass the IRS definition. I go by what Vanguard does with the sale. Vanguard has put losses back on purchases I made if they say it was a wash sale. I never had losses put back when trading VTI and VOO; I have done this for years and the IRS has not disallowed it.calvin+hobbes wrote: ↑Sun Jun 21, 2020 4:01 pm As did I, and I am curious how Vanguard’s analysis accounted for this since the transaction involved selling of equities. I happened to exchange VTSAX for VFIAX but what if I exchanged it for a target date fund that had some bonds? Seems like there would be some grey areas.
David Grabiner
I agree with your interpretation of TLH between TSM and the S&P 500 funds but that is unrelated to my question.J G Bankerton wrote: ↑Sun Jun 21, 2020 4:20 pmThe IRS say to avoid a wash sale the securities involved have to be substantially different. VTI and VOO are close, only a few bases points different over the years but they are different enough to pass the IRS definition. I go by what Vanguard does with the sale. Vanguard has put losses back on purchases I made if they say it was a wash sale. I never had losses put back when trading VTI and VOO; I have done this for years and the IRS has not disallowed it.calvin+hobbes wrote: ↑Sun Jun 21, 2020 4:01 pm As did I, and I am curious how Vanguard’s analysis accounted for this since the transaction involved selling of equities. I happened to exchange VTSAX for VFIAX but what if I exchanged it for a target date fund that had some bonds? Seems like there would be some grey areas.
With the big flash crashes we had in December 2018 and earlier this year I have harvested enough losses to last many years if I only take the $3,000 a year regular income deduction. The best part is those realized losses are now just paper losses; my unrealized gains more than off set the realized losses.
I don't make the rules I only play the game.
My tax advisor says because VTI holds 3,600 stocks that is substantially different than VOO's 500 stocks.
I assume they meant we didn't contribute to the record inflows of cash. That cash came from the sale of stock I assume as $685 billion would be too much to have hidden under the mattress. My swapping VTI for VOO would still be shown as stock holdings, not a flight to cash.calvin+hobbes wrote: ↑Sun Jun 21, 2020 6:53 pm Vanguard says 91.7% of their investors did not move out of equities. I tax loss harvested so technically sold equities at a loss while simultaneously purchasing other equities at the same value. Are they accounting for me in the 91.7% or the 8.3%?
. It's different when you're retired and that money is literally what you live on (well, part of what we live on...)It's substantially identical to be classified a wash... Subtle but different. As far as I know there is still no authoritative ruling on what that means for mutual funds.... Here is some discussion from Kay that I trust....J G Bankerton wrote: ↑Sun Jun 21, 2020 4:20 pmThe IRS say to avoid a wash sale the securities involved have to be substantially different.
What do they mean by action? I assume more than 8.3% of Vanguard's clients made a contribution during the month.
Good question - I don't know.J G Bankerton wrote: ↑Wed Jun 24, 2020 1:05 pmWhat do they mean by action? I assume more than 8.3% of Vanguard's clients made a contribution during the month.
I sold a bountiful harvest in VTI but bought the same amount in VOO 15 seconds later to harvest tax losses. I assume many Bogleheads took advantage of the harvest too. I consider that staying the course. Vanguard should consider that as taking no action where action is a panic rush to cash.Silence Dogood wrote: ↑Wed Jun 24, 2020 1:39 pmGood question - I don't know.J G Bankerton wrote: ↑Wed Jun 24, 2020 1:05 pmWhat do they mean by action? I assume more than 8.3% of Vanguard's clients made a contribution during the month.
I have a Roth IRA with Vanguard but I had already maxed out my 2020 contribution (on January 2nd).
I contributed to my 401(k) during that time frame but my 401(k) is not with Vanguard.
