How many of you are true Bogleheads? - Page 2 - TigerDroppings.com

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wegotdatwood
Arkansas Fan
Member since Aug 2009
17094 posts

re: How many of you are true Bogleheads?


quote:

2. Can you add to an IRA through different providers (say etrade or something like that as well as the Vanguard account I already have)


Good question, I assume it would be easier to have just 1, right?

I also assume you couldn't go past the $5500 anyway.

quote:

I currently have indexes through Vanguard. If I want to do a DRIP(looking at CVX


I'll do some research on my vanguard.






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jimbeam
USA Fan
University of LSU
Member since Oct 2011
31094 posts

re: How many of you are true Bogleheads?


quote:

Good question, I assume it would be easier to have just 1, right?
Yea I just want to make it at simple as possible






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wegotdatwood
Arkansas Fan
Member since Aug 2009
17094 posts

re: How many of you are true Bogleheads?


quote:

jimbeam



If you chose this option when you completed your application for a Vanguard® Brokerage account, the following terms apply. If you have not requested this service, you can set it up by calling us at 800-992-8327 on business days from 8 a.m. to 10 p.m., or on Saturdays from 9 a.m. to 4 p.m., Eastern time. Note: If you are an "affiliate" or "insider," you should consider consulting with your personal legal adviser before enrolling in this program.

1. What is the Vanguard Brokerage dividend reinvestment program?
This no-fee, no-commission reinvestment program allows you to reinvest dividend and capital gains distributions from any or all eligible stocks, closed-end mutual funds, or exchange-traded funds (ETFs) in your Vanguard Brokerage account in additional shares of the same securities. All eligible distributions paid by the securities you designate must be reinvested. The program is provided through Vanguard Brokerage. The dividend reinvestment program is available for all Vanguard Brokerage accounts except those that are subject to either backup or nonresident alien income-tax withholding. To modify or cancel any or all of your reinvestment instructions at any time, notify us by letter, secure e-mail, or telephone. To change dividend elections, we must receive the instructions at least two business days before the payable date for the changes to be effective with that distribution. Changes received after that time will be processed on a best-efforts basis.

2. What are the eligibility requirements?
To be eligible for the program, securities must be held in “street name” by Vanguard Brokerage Services prior to the stock’s record date. Under street-name registration, the securities are owned by the brokerage customer but are registered in a brokerage’s or clearing agent’s name for easy transfer and protection against loss or theft. Virtually all the stocks, closed-end mutual funds, and ETFs you hold through your account are held in street name. Note the following eligibility characteristics:

• You must be a shareholder on the record date of the distribution to receive dividends.
• A security’s distributions will not be reinvested if the security has a low average daily trading volume or if the corporation is involved in a corporate reorganization or other corporate action, such as a merger.
• Only cash dividends from the eligible securities in your account can be used to purchase additional shares. Types of dividends that are ineligible for this program include those from securities held in your name outside your account, optional dividends, and certain special dividends. (Optional dividends allow shareholders to take the dividend in cash, stock, or a combination of cash and stock. Special dividends are paid in addition to normally scheduled dividends.)
• Unit investment trusts, American Depositary Receipts (ADRs), foreign equities and certain domestic equities are not eligible for the reinvestment program.
• Vanguard Brokerage Services may make a security eligible or ineligible for automatic reinvestment without prior notification to shareholders.

3. How does the reinvestment program work?
When reinvesting dividends, Vanguard Brokerage Services combines the cash distributions from the accounts of all clients who have requested reinvestment in the same security, and then uses that combined total to purchase additional shares of the security in the open market. Vanguard Brokerage will attempt to purchase the reinvestment shares by entering a market order at the market opening on the payable date. The new shares are divided proportionately among the clients' accounts, in whole and fractional shares rounded to three decimal places. If the total purchase cannot be completed in one trade, clients will receive shares purchased at the weighted average price paid by Vanguard Brokerage Services.

4. How can I keep track of transactions?
You can view the dividend reinvestment status of the securities in your account online at Vanguard.com or in the Holdings section of your regular Vanguard Brokerage Services statement. Reinvestment transactions will be reported in the Activity section on your regular brokerage statement. A line entry will show the total amount of the dividend payment; a separate line entry will report the number of shares purchased and the purchase price per share. You will not receive an interim confirmation. You can access updated account information after the dividend payable date at Vanguard.com, via AutoBroker®, our automated telephone system, or by calling a brokerage associate.

5. Does selling shares affect a distribution?
If you sell the entire stock position two days or more before the dividend-payable date, Your distribution will be paid in cash. If, however, You sell an entire position within the two day time frame of the security’s payable date, the dividend will be reinvested, resulting in additional shares. Selling these subsequent shares will require another sell order, which will incur additional commission charges. Dividends which would have been reinvested into less than one whole share will be automatically liquidated into cash.






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jimbeam
USA Fan
University of LSU
Member since Oct 2011
31094 posts

re: How many of you are true Bogleheads?








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wegotdatwood
Arkansas Fan
Member since Aug 2009
17094 posts

re: How many of you are true Bogleheads?


So, I guess, you could drip 1 or a several stocks in your roth up to $5,500 and avoid commission completely.

I plan on keeping my roth all individual stocks because I start a pension plan with my job that will be invested in "normal" ways.







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wegotdatwood
Arkansas Fan
Member since Aug 2009
17094 posts

re: How many of you are true Bogleheads?


Does bogleheads suggest any DRIP's?

Also, with "free" drips through vanguard, etrade etc. Why do the direct company drips charge?







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ThaBigFella
LSU Fan
baton rouge
Member since Apr 2006
2043 posts

re: How many of you are true Bogleheads?


bogleheads basically suggests you buy the total stock market and then make small investments in a bunch of other low risk funds. You basically end up owning every company and bond on earth......on the flipside you won't ever go bankrupt


This post was edited on 7/14 at 10:41 pm


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wegotdatwood
Arkansas Fan
Member since Aug 2009
17094 posts

re: How many of you are true Bogleheads?


Do you drip PM or just buy shares? It seems it would save money to drip, right?





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ThaBigFella
LSU Fan
baton rouge
Member since Apr 2006
2043 posts

re: How many of you are true Bogleheads?


I've been on a DRIP forever, I originally had the old Altria which spun off Phillip Morris,Kraft,Mondelez.....I have shares of all and many more all on DRIPs.





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matthew25
Ole Miss Fan
Member since Jun 2012
3400 posts

re: How many of you are true Bogleheads?


I have 2 funds with Vanguard and have Dripped since 1997. It has made me a ton of money.

I have 12 other Vanguard funds through Scottrade. No Drip.

BUT WAIT, There's More: effective next week at Scott, I can pool/drip all/some of my cash dividends from my stocks and mutual funds into 5 funds/stocks of my choosing. Monthly or quarterly basis.






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wegotdatwood
Arkansas Fan
Member since Aug 2009
17094 posts

re: How many of you are true Bogleheads?


I see.

With only $5,500 a year in my roth, I'd like to do drip on 2, maybe 3 stocks.

I would like to do V is Vanguard would allow it.

Hopefully, I'd like to fund a normal brokerage account.






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wegotdatwood
Arkansas Fan
Member since Aug 2009
17094 posts

re: How many of you are true Bogleheads?


quote:

BUT WAIT, There's More: effective next week at Scott, I can pool/drip all/some of my cash dividends from my stocks and mutual funds into 5 funds/stocks of my choosing. Monthly or quarterly basis.



So, say I get a dividen in PM, I could put that divi into something else for free as long as I owned that stock?






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tagatose
LSU Fan
South Carolina
Member since Oct 2005
37 posts

re: How many of you are true Bogleheads?


BigFella I read your Put question thread a few weeks ago and wanted to respond but forgot. Anyway, I cash flow the market too with monthly covered calls & puts. I generally sell during expiration week and the week after for the following month options. For covered calls I sell 10-15% out-of-the-money calls after 2 consecutive up days for the stock (which most times guarantees it wont execute). And for Puts I do the opposite except I may sell closer to current price if I really want to own it. Also I only do this with relatively stable stocks that I want to own long term. Like you, the long term goal is to end up with a lot of dividend paying shares for retirement purposes.

This generates a nice monthly cash flow for me.

/threadjack






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wegotdatwood
Arkansas Fan
Member since Aug 2009
17094 posts

re: How many of you are true Bogleheads?


I bought a whopping 10 shares of Visa this morning.

I'm proud of myself. Starting my first real job and have 12k in my Roth. Deployment helped with that bigtime.

No student loans, car is paid off.

A great goal would be to max wife's Ira. Don't know if it will be possible without her income once she gives birth.

Do any bogleheads ever just buy a stock or two?


How did bogleheads become so popular?







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rintintin
New Orleans Saints Fan
Life is Life
Member since Nov 2008
7785 posts

re: How many of you are true Bogleheads?


quote:

How did bogleheads become so popular?


John C. Bogle, the founder and former CEO of Vanguard.

Its a pretty simple philosophy of investing.






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