2019 Year-End Distributions

Vanguard's site says preliminary estimates will be posted on Dec. 10th.
 
I like that none of my FIDO index funds in my taxable account have any year end distributions. Very tax efficient.
 
Anyone else finding that so far 2019 estimates look smaller than 2018? Not complaining- capital gain distributions on funds in my after-tax accounts are one of the major drivers of my taxes that I can't control.
 
The TRP distros are a lot smaller, which suggests that the VG ones will be smaller too (not that we ever got that much CG from VG funds).

We were planning to spend them on home renovation projects. Now, it looks like we'll need to use more savings than planned.

Still, considering that distros aren't truly "income," it doesn't distress me that they have been reduced. It does reduce our tax bite.

athena53 said:
Anyone else finding that so far 2019 estimates look smaller than 2018? Not complaining- capital gain distributions on funds in my after-tax accounts are one of the major drivers of my taxes that I can't control.
Click to expand...
 
athena53 said:
Anyone else finding that so far 2019 estimates look smaller than 2018? Not complaining- capital gain distributions on funds in my after-tax accounts are one of the major drivers of my taxes that I can't control.
Click to expand...

Yes, thank God! I prefer my distributions stay under 4% - enough to cover annual withdrawal and a bit of rebalancing. That has not been true for the last few market rah-rah years.

This year's lower dists are due to that nasty correction in Dec/Jan

I've also been slowly getting rid of the active managed funds in my taxable investments that pay high cap gains dists, so my taxable income should be lower this year anyway.
 
athena53 said:
Anyone else finding that so far 2019 estimates look smaller than 2018? Not complaining- capital gain distributions on funds in my after-tax accounts are one of the major drivers of my taxes that I can't control.
Click to expand...

Last year there was a significant downdraft in the market at the end of the year.

I think lots of people sold because of that downdraft.

To meet those redemption requests, the mutual funds had to sell shares.

Those shares, if held for any amount of time, probably had unrealized capital gains.

Those gains, once realized, had to be reported as gains distributions and taxed.

That's my thought, anyway.
 
Math Question

I have Fidelity and TRowe funds in taxable accounts. The cap gains and dividends I receive are my only income and they help me qualify for the Healthcare Subsidy. Can somebody confirm the calculation I need to do for each fund?

For example, I own 2633 shares of a Fidelity fund. Lets say each share value was $15.57. It will pay out 5.18% of NAV on Dec 23. Do I multiply one share ($15.57) by 5.18% and times it by 2633?

Thanks!
 
Fleur58 said:
I have Fidelity and TRowe funds in taxable accounts. The cap gains and dividends I receive are my only income and they help me qualify for the Healthcare Subsidy. Can somebody confirm the calculation I need to do for each fund?

For example, I own 2633 shares of a Fidelity fund. Lets say each share value was $15.57. It will pay out 5.18% of NAV on Dec 23. Do I multiply one share ($15.57) by 5.18% and times it by 2633?

Thanks!
Click to expand...

That sounds about right, but it would be easier to use the $x.xx/share distribution numbers (times your number of shares) instead of the percentage. The actual distributions are not calculated as percentages, that's just a calculated indicator. The percentage will change as the NAV changes, though these are just rough estimates.
 
Yes - usually the distribution is reported in $ terms and I just multiply by the number of shares. That’s the cleanest.

If the distribution is reported as a % of NAV - it’s going to be of the NAV on a given stated date in the past. You have to look up the NAV that day, them multiply by the % of NAV and again by the number of shares you own.
 
Our distributions paid through 10/31 are running just a smidge above half of what we got last year through 10/31!

Just finished my spreadsheet where I start collecting cap gains estimates, but I also enter distributions paid YTD so I get a total paid by each fund. Quite a few funds are predicting 0 cap gains distributions, so I expect the next two months to be significantly lower as well.

I am missing quite a few estimates though. By 11/15 I usually have most of them and a clearer picture.
 
Thanks Animorph and Audreyh1 for your responses. If I don't meet my minimum I have to do a Roth conversion the end of December to make up the shortfall. It's good to be prepared with an estimate.
 
I like this thread. The preliminary estimated distributions help me in planning for possible Roth IRA conversions in December. Still waiting for preliminary estimated distributions on some inherited mutual funds at Janus, American Century, and DWS Scudder.
 
I mentioned the Fido estimates last week in another thread. They are lower than last year's (and 2017's) to the point where I may not go over the ACA subsidy cliff this year, with some careful management between now and the end of the year. Because my main year-end estimate will take place on Friday, December 27th, I won't have much time to make my adjustments after the actual distributions are posted. And not all funds have had their distributions posted yet, so I'll be checking back from time to time.


Dreyfus-Mellon usually posts their around November 8th, so I'll be looking for them in a few days.
 
I spoke to Fido last week, and they said the estimates on other funds would start coming out the first week in December.
 
I don't really spend much time looking at them (unless for some reason they are HUGE [ouch]. Always seems to be some corrections by tax time. I have done a pretty good job of estimating them and doing quarterly tax payments.
 
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