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Thread: Questions From Newbies Like Me

  1. #21

    Join Date
    Feb 2009
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    Default Re: Questions From Newbies Like Me

    Quote Originally Posted by XL-entLady View Post
    I see that Vanguard's VIPERS have a seriously smaller expense ratio than, for example, iShares. So that's good, but there's got to be a down side. What is it?

    TIA to anyone who can give me some insight!

    Lady
    Okay, further research leads me to believe that Vanguard's ETFs are a shareclass of their open-end funds rather than stand-alones, and so may not be as tax efficient (according to The ETF Book, by Richard Ferri). So apparently Vanguard ETFs are a good thing in a Roth IRA but may not be a good thing in a traditional taxed account.

    Maybe ..... ?

    Lady
    If you think education is expensive, try ignorance. - Derek Bok

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  3. #22

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    Feb 2009
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    654

    Default Re: Questions From Newbies Like Me

    Here's a question that highlights my greenhorn status. When dividends are paid, are they paid based on the percentage of time you held the stock or ETF during the payment period? Or is it just - everyone who owns that ETF on the date the dividend is paid gets the same percent payment?

    lady
    If you think education is expensive, try ignorance. - Derek Bok

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  5. #23

    Join Date
    Dec 2007
    Posts
    906

    Default Re: Questions From Newbies Like Me

    I found this answer here.

    "Dividends are paid to "The Shareholder of Record" when the ex-dividend date is declared...

    You can sell the stock after that date (but before the dividend is paid out) and still get the dividend because you were the shareholder of record at that time...

    Once the dividend is paid out the stock price reflects that dividend so the new owner, who did not get the dividend will still benefit from it..."

    I'm not so sure about that last sentence so I am not sure about the credibility of the whole statement.
    -- Tom | My Trades

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  7. #24

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    Feb 2009
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    Default Re: Questions From Newbies Like Me

    Thank you, Tom!

    Lady
    If you think education is expensive, try ignorance. - Derek Bok

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  9. #25

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    Feb 2009
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    654

    Default Re: Questions From Newbies Like Me

    Is this a question I need to ask Scottrade? Or does someone here know the answer to this one?

    When I try to set my stop on RHHBY (the Tamaflu company) I get a message that says:

    "Unable to enter order because stop and stop limit orders are not allowed on Bulletin Board and Pink Sheet stock orders."

    So can my broker enter a stop price for me, or is market price the only choice I have when I want to sell? That would be scary.

    TIA to anyone who can shed some light on this one,
    Lady
    If you think education is expensive, try ignorance. - Derek Bok

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  11. #26

    Join Date
    Dec 2007
    Posts
    906

    Default Re: Questions From Newbies Like Me

    You can probably set up an alarm to notify you when your price is close, but these micro-caps can be so illiquid, and the spreads between buy and sell quite wide, that they can be easily manipulated. They'd run your stop on you and hike the price right back up. It seems criminal, but they do it.
    -- Tom | My Trades

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  13. #27

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    Mar 2009
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    Curlew Washington
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    Default Re: Questions From Newbies Like Me

    Quote Originally Posted by XL-entLady View Post
    Okay, further research leads me to believe that Vanguard's ETFs are a shareclass of their open-end funds rather than stand-alones, and so may not be as tax efficient (according to The ETF Book, by Richard Ferri). So apparently Vanguard ETFs are a good thing in a Roth IRA but may not be a good thing in a traditional taxed account.

    Maybe ..... ?

    Lady
    This touches on my newbie question (I chickened out starting my Scottrade accnt., until now, as I said I was going to in my introduction back in April. I'm not going to roll over my tsp just yet, but am ready to start with a smaller cash amount from my tax return. What type of account is the best to use if you want to be able, if needed, to withdraw earnings periodically (Individual accnt., std IRA or Roth). I've reviewed them on the Scott site but am still confused.--Ron


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  15. #28

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    Feb 2009
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    654

    Default Re: Questions From Newbies Like Me

    Quote Originally Posted by USPSretired View Post
    This touches on my newbie question (I chickened out starting my Scottrade accnt., until now, as I said I was going to in my introduction back in April. I'm not going to roll over my tsp just yet, but am ready to start with a smaller cash amount from my tax return. What type of account is the best to use if you want to be able, if needed, to withdraw earnings periodically (Individual accnt., std IRA or Roth). I've reviewed them on the Scott site but am still confused.--Ron
    You're smart not to rollover your TSP until you've 'practiced' on a smaller account, such as tax return money. And it's hard to say which account would work best for you to withdraw from because it depends on individual circumstances. If you're over 59 1/2 years of age, then I would suggest you consider opening a Roth or a standard IRA. And your best choice between those two would depend on your tax circumstances.

    BTW, when you get ready to roll your TSP into a Scottrade or other outside account, my understanding of the rules is that you can't put TSP $ into a Roth unless you're prepared to pay the taxes when you rollover. But you can rollover TSP into a regular IRA and then just pay the taxes on your yearly withdrawals. (Anyone who has a different understanding, please correct me.)

    Good luck,
    Lady
    If you think education is expensive, try ignorance. - Derek Bok

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  17. #29

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    Default Re: Questions From Newbies Like Me

    Quote Originally Posted by XL-entLady View Post
    You're smart not to rollover your TSP until you've 'practiced' on a smaller account, such as tax return money. And it's hard to say which account would work best for you to withdraw from because it depends on individual circumstances. If you're over 59 1/2 years of age, then I would suggest you consider opening a Roth or a standard IRA. And your best choice between those two would depend on your tax circumstances.

    BTW, when you get ready to roll your TSP into a Scottrade or other outside account, my understanding of the rules is that you can't put TSP $ into a Roth unless you're prepared to pay the taxes when you rollover. But you can rollover TSP into a regular IRA and then just pay the taxes on your yearly withdrawals. (Anyone who has a different understanding, please correct me.)

    Good luck,
    Lady
    Thanks again Lady. Am I correct in understanding that the minimum Roth deposit is $5000?

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  19. #30

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    Mar 2009
    Location
    Curlew Washington
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    6

    Default Re: Questions From Newbies Like Me

    Another quick question do you suggest going with a joint account so your spouse could take over if necessary?

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