Search found 2672 matches

by sophie
Sat Jun 23, 2018 10:44 am
Forum: Stocks
Topic: Tax implications of reinvesting dividends
Replies: 23
Views: 537

Re: Tax implications of reinvesting dividends

I contacted Fidelity. They show cost basis for reinvested dividends in taxable accounts, but not in tax-advantaged accounts (it will show as zero cost basis). I just had a dividend reinvestment show up (my canary in the coal mine experiment) and it does indeed list cost basis, and the total cost bas...
by sophie
Tue Jun 19, 2018 8:53 am
Forum: Stocks
Topic: Tax implications of reinvesting dividends
Replies: 23
Views: 537

Re: Tax implications of reinvesting dividends

I think the IRS is only looking to have brokers track dividends to ensure tax reporting in the year that they're generated. There's nothing that says they have to track reinvested dividends over the years to add into your cost basis when you sell. And it appears they are NOT doing that. Cost basis f...
by sophie
Mon Jun 18, 2018 7:31 am
Forum: Stocks
Topic: Tax implications of reinvesting dividends
Replies: 23
Views: 537

Re: Tax implications of reinvesting dividends

Thanks bedraggled! I think that answers my question. It is Scenario #2, and you WILL be double taxed on the dividends unless you track them and provide the records to the IRS when you go to sell. That's a headache I think I'd rather not deal with, and I bet the federal government is scoring big time...
by sophie
Sun Jun 17, 2018 11:21 am
Forum: Stocks
Topic: Tax implications of reinvesting dividends
Replies: 23
Views: 537

Tax implications of reinvesting dividends

I have a tax question for the well-informed folks on the board: what are the implications of reinvesting dividends in a taxable account on later sales of shares? Specifically: let's say you buy 100 shares of a stock, and get a 1 share dividend per quarter. You pay tax on that dividend, but have it r...
by sophie
Thu Jun 14, 2018 10:56 am
Forum: Other Discussions
Topic: Flying !st class with a free upgrade?
Replies: 19
Views: 844

Re: Flying !st class with a free upgrade?

The cruise option is definitely pricey and scheduling is severely limited (1 trip/month), but I will absolutely keep it in mind for my next trip to Europe. I'd only use it for the outbound leg, which is where I try to get first class upgrades wherever possible. It is SO worth it: you get a seat that...
by sophie
Sun Jun 10, 2018 10:25 am
Forum: Variable Portfolio Discussion
Topic: Wellesley
Replies: 23
Views: 886

Re: Wellesley

Thanks Desert! Let's hope that the bull market continues long enough to build up your portfolio for an extra safety margin. And then the crash will come just as I'm getting ready to retire, of course ;D Your posts make me think about strategies too. Like, I have an idea that if my portfolio grows la...
by sophie
Sun Jun 10, 2018 9:17 am
Forum: Variable Portfolio Discussion
Topic: Wellesley
Replies: 23
Views: 886

Re: Wellesley

It depends how often you have to sell assets during a drawdown. The math gets really nasty when that happens: Starting portfolio = $100,000; let's say there's an immediate 20% drawdown so it's now worth $80,000. You now withdraw $5,000 --> portfolio now stands at $75,000. In order for the portfolio ...
by sophie
Sun Jun 10, 2018 8:53 am
Forum: Other Discussions
Topic: The Psychology of Money
Replies: 22
Views: 714

Re: The Psychology of Money

Yes, but think of all he gets for that $12k! There's, um, hmm, I'm pretty sure there is something! By comparison, we pay about $2k a year in real estate taxes, for which we get: 1. Publik skools, which we have never used and will never use (most of the taxes); 2. County roads and sheriff services, ...
by sophie
Sat Jun 09, 2018 5:41 pm
Forum: Variable Portfolio Discussion
Topic: Wellesley
Replies: 23
Views: 886

Re: Wellesley

We've had discussions on this in the past and definitely it's time for another one! Starting with your example: Let's assume that you're just starting retirement, and your portfolio is exactly 25x annual expenses, i.e. expenses are 4% of the portfolio size. So your 2% assumes that you keep no more t...
by sophie
Sat Jun 09, 2018 5:19 pm
Forum: Bonds
Topic: vanguard vs fidelity
Replies: 35
Views: 1256

Re: vanguard vs fidelity

Sort of like cash. Strong emphasis on 'deep cash', as in you never want rebalance out of them. Take them into retirement and cash them in when you're ready to deal with the tax implications. I use 1/3 of total cash as my rule of thumb, so I don't buy I bonds every year.
by sophie
Sat Jun 09, 2018 9:57 am
Forum: Variable Portfolio Discussion
Topic: Wellesley
Replies: 23
Views: 886

Re: Wellesley

I remember Medium Tex proposing something very similar back in the epic Bogleheads thread. I don't exactly remember how much gold he was talking about - maybe 10%, but I think that was based more on the idea that people who are looking for simple might be skittish about holding more gold than that. ...
by sophie
Thu Jun 07, 2018 6:58 am
Forum: Other Discussions
Topic: School Shootings
Replies: 60
Views: 1652

Re: School Shootings

Wow, I just read that STEM article. I can't even count the ways in which I find it offensive. It ignores the fact that women are under-represented in STEM from day 1 of freshman year. Unless something fundamental about college has changed, grades don't start happening until after that. Slight cause ...