To TLH or not to TLH PRPFX?
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To TLH or not to TLH PRPFX?
I've been DCAing almost monthly into PRPFX for 3 years in my taxable account and now due to the September drop I got some of the tax lots in the red.
I'm trying to decide whether I just stick with these shares or sell them to get the tax write-off. In case of the latter the second question pops up: is there a good substitute for PRPFX to put the sale proceeds for 31 day and then jump back into PRPFX? Maybe total bond fund or GNMA?
Thanks!
I'm trying to decide whether I just stick with these shares or sell them to get the tax write-off. In case of the latter the second question pops up: is there a good substitute for PRPFX to put the sale proceeds for 31 day and then jump back into PRPFX? Maybe total bond fund or GNMA?
Thanks!
"Let every man divide his money into three parts, and invest a third in land, a third in business, and a third let him keep in reserve."
- Talmud
- Talmud
- buddtholomew
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Re: To TLH or not to TLH PRPFX?
What is preventing you from harvesting the loss? I wish that HB would have discussed this in his literature or podcasts as the benefits outweigh the drawbacks. Place the proceeds in Cash and wait out the 30 days before re-investing in the fund.
"The first principle is that you must not fool yourself and you are the easiest person to fool" --Feynman.
Re: To TLH or not to TLH PRPFX?
I just want to avoid losing on a possible market rise that might happen in January if I sit in cash. Although in case of PRPFX any jump (up or down) would be smoothed by the non-stock assets in the fund.buddtholomew wrote: What is preventing you from harvesting the loss? I wish that HB would have discussed this in his literature or podcasts as the benefits outweigh the drawbacks. Place the proceeds in Cash and wait out the 30 days before re-investing in the fund.
"Let every man divide his money into three parts, and invest a third in land, a third in business, and a third let him keep in reserve."
- Talmud
- Talmud
Re: To TLH or not to TLH PRPFX?
Sell some of it and buy a 4 x 4 HB PP.foglifter wrote: I just want to avoid losing on a possible market rise that might happen in January if I sit in cash. Although in case of PRPFX any jump (up or down) would be smoothed by the non-stock assets in the fund.
"All men's miseries derive from not being able to sit in a quiet room alone."
Pascal
Pascal
Re: To TLH or not to TLH PRPFX?
Well, that would mean:Adam1226 wrote:Sell some of it and buy a 4 x 4 HB PP.foglifter wrote: I just want to avoid losing on a possible market rise that might happen in January if I sit in cash. Although in case of PRPFX any jump (up or down) would be smoothed by the non-stock assets in the fund.
- headache with gold ETFs/CEFs (tax reporting/no e-file for GTU or collectible tax rate in case of gold ETFs)
- losing the tax efficiency of PRPFX (which yields less than 1% a year)
- more fees (bond and gold ETFs)
Or do you mean turning completely to HBPP?
"Let every man divide his money into three parts, and invest a third in land, a third in business, and a third let him keep in reserve."
- Talmud
- Talmud
- buddtholomew
- Executive Member
- Posts: 2464
- Joined: Fri May 21, 2010 4:16 pm
Re: To TLH or not to TLH PRPFX?
The market could just as easily continue its downward trend. Come January, you will be able to purchase PRPFX at a lower price and have the tax deduction.If you are concerned about missing a year-end rally, take Adam's advice and invest the proceeds in the 4x25 mix. This may be more of an inconvenience if you are not committed to holding this investment for an extended period of time.foglifter wrote:I just want to avoid losing on a possible market rise that might happen in January if I sit in cash. Although in case of PRPFX any jump (up or down) would be smoothed by the non-stock assets in the fund.buddtholomew wrote: What is preventing you from harvesting the loss? I wish that HB would have discussed this in his literature or podcasts as the benefits outweigh the drawbacks. Place the proceeds in Cash and wait out the 30 days before re-investing in the fund.
"The first principle is that you must not fool yourself and you are the easiest person to fool" --Feynman.
- buddtholomew
- Executive Member
- Posts: 2464
- Joined: Fri May 21, 2010 4:16 pm
Re: To TLH or not to TLH PRPFX?
The market could just as easily continue its downward trend. Come January, you will be able to purchase PRPFX at a lower price and have the tax deduction.If you are concerned about missing a year-end rally, take Adam's advice and invest the proceeds in the 4x25 mix. This may be more of an inconvenience if you are not committed to holding this investment for an extended period of time.foglifter wrote:I just want to avoid losing on a possible market rise that might happen in January if I sit in cash. Although in case of PRPFX any jump (up or down) would be smoothed by the non-stock assets in the fund.buddtholomew wrote: What is preventing you from harvesting the loss? I wish that HB would have discussed this in his literature or podcasts as the benefits outweigh the drawbacks. Place the proceeds in Cash and wait out the 30 days before re-investing in the fund.
"The first principle is that you must not fool yourself and you are the easiest person to fool" --Feynman.
Re: To TLH or not to TLH PRPFX?
Thank you folks. I will probably just wait in cash. Given that the market doesn't really look like March 2009 I shouldn't lose much I guess within 30 days.
"Let every man divide his money into three parts, and invest a third in land, a third in business, and a third let him keep in reserve."
- Talmud
- Talmud
Re: To TLH or not to TLH PRPFX?
If you have any cash available, you might consider buying a few shares of PRPFX every week or so instead of selling to tax harvest.foglifter wrote: Thank you folks. I will probably just wait in cash. Given that the market doesn't really look like March 2009 I shouldn't lose much I guess within 30 days.
In the past, the pullbacks in this fund don't last long. You may makeup in capital gains what you lose from deciding not to tax harvest...if that makes sense.
"All men's miseries derive from not being able to sit in a quiet room alone."
Pascal
Pascal
Re: To TLH or not to TLH PRPFX?
An easy strategy if you wish to continue PRPFX but make a bit of a change. 25% GLD and 75% VWINX. VWINX is up 7 1/2 % YTD (40% stocks and 60% bonds). It might be good time to buy gold. Gold is going back up, I can feel it!
http://www.kitco.com/ind/Holmes/holmes_dec122011.html
Graham said the ideal asset allocation was 50-50. This is close.
As for me I now own more VWINX than PRPFX. As one might guess the Vanguard fees are less. I am willing to let others do the allocations and I still have faith in Cuggino, like the 10% Swiss francs and real estate.
Can we have a YTD performance now on the classic HB? Anyone? TIA.
http://www.kitco.com/ind/Holmes/holmes_dec122011.html
Graham said the ideal asset allocation was 50-50. This is close.
As for me I now own more VWINX than PRPFX. As one might guess the Vanguard fees are less. I am willing to let others do the allocations and I still have faith in Cuggino, like the 10% Swiss francs and real estate.
Can we have a YTD performance now on the classic HB? Anyone? TIA.
Re: To TLH or not to TLH PRPFX?
If you want a more detailed look at PRPFX holdings here's an up to date link:
http://blogs.marketwatch.com/great-colu ... ain-world/
http://blogs.marketwatch.com/great-colu ... ain-world/
Re: To TLH or not to TLH PRPFX?
Thanks for a link, I'm familiar with the internals of PRPFX and of course it's biggest deviation from HBPP is in the bonds area. But still it's a great choice for taxable accounts.pershing83 wrote: If you want a more detailed look at PRPFX holdings here's an up to date link:
http://blogs.marketwatch.com/great-colu ... ain-world/
Your suggestion about VWINX sounds good, but I don't want to pay Fido $75 for buying Vanguard fund though. Another option I'm considering is FBALX, I'm just waiting until it pays out the dividend.
"Let every man divide his money into three parts, and invest a third in land, a third in business, and a third let him keep in reserve."
- Talmud
- Talmud