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Can this be correct? A bunch of Vanguard funds including one that i own went down between $1 and $4 today. Mine is down 9% in one day, what the h*** happened?
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Re: Vanguard Funds
What fund is that? I just checked mine and they both went up a little. -
Re: Vanguard Funds
International Growth. But look at the list of all their funds and their are a few that really dropped.
Prime Cap Fund is down $4.52
Health Care fund down $5.03
Capital Value is down 8%
and othersComment
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Re: Vanguard Funds
They just paid off a hefty long term capital gain. A lot of stocks are going through this. It's a rough tax season for some.The easiest thing of all is to deceive one's self; for what a man wishes, he generally believes to be true.
- DemosthenesComment
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Re: Vanguard Funds
Ok i see it now. So that money will be paid to me and then reinvested right?Comment
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Re: Vanguard Funds
Yes, tis the season for mutual fund distributions. What happens is the earnings are paid out and the fund's NAV drops an equivalent amount. If you have elected to reinvest your earnings, you now own more shares but your total account value is about the same. If it is a taxable account, however, you will owe taxes on the distribution, even if you reinvested it.Steve
* Despite the high cost of living, it remains very popular.
* Why should I pay for my daughter's education when she already knows everything?
* There are no shortcuts to anywhere worth going.Comment
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Re: Vanguard Funds
Yes, you're correct. The NAV price of the fund was reduced because of the capital gains distributions. You will receive the distributions, which will be reinvested in the same fund, so the total money that you have in that fund will remain the same, you'll just own more shares at a lower price. You'll need to pay taxes on the amount of the distribution, even though the money was reinvested. That amount will be added to you cost basis, so when you sell your shares in the future, you won't get taxed twice.Comment
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Re: Vanguard Funds
And if you've elected to not have your distributions reinvested, you'll be getting a nice check. Either way, you'll be paying taxes. Fortunately most of it is a long term gain so the tax on that aspect of it will only be 15%.The easiest thing of all is to deceive one's self; for what a man wishes, he generally believes to be true.
- DemosthenesComment
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Re: Vanguard Funds
Now that the capital gains have been paid can I invest more money or should I wait til after the new year?Comment
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Re: Vanguard Funds
Doesn't really matter. If it is a taxable account, go ahead and put it in when you have it to invest. There is often a January market rally, so you don't want to miss it if it happens.Originally posted by risknothingSteve
* Despite the high cost of living, it remains very popular.
* Why should I pay for my daughter's education when she already knows everything?
* There are no shortcuts to anywhere worth going.Comment
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Re: Vanguard Funds
Well i was told that you shouldn't invest until after cap gains because of the taxes. So now i should be safe right?Comment
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Re: Vanguard Funds
Correct.Originally posted by risknothingSteve
* Despite the high cost of living, it remains very popular.
* Why should I pay for my daughter's education when she already knows everything?
* There are no shortcuts to anywhere worth going.Comment
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Re: Vanguard Funds
When is the expense paid? If a fund has a .50% expense ratio when does that get paid and how?Comment
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Re: Vanguard Funds
The expense ratio part is paid out over the entire year. You'll never really know when it's getting taken out because it occurs over time and is absorbed out of the NAV. It's not a "one time" payment.The easiest thing of all is to deceive one's self; for what a man wishes, he generally believes to be true.
- DemosthenesComment
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Re: Vanguard Funds
I still don;t completely understand the benefits of capital gains and dividends it seems that the government just wants to get some tax money.Comment
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