"transfer in-kind" from your current account should not cause the $75 fee. Purchasing additional shares might cost $5, which is nothing unless you're dealing with tiny amounts. Reinvest the dividends and capital gains which is also free and leads to increased positions.

Reply to @MaxBialystock:
1) MSPZX is Mass Mutual PIMCO Total Return fund. It is sub-advised by PIMCO similar to Harbor one, I believe
2) CCASX fund has an expense waiver, keeping expenses at 1.10% until Feb 2013.
"Conestoga Capital Advisors, LLC has contractually agreed to limit the Fund’s net annual operating expenses to 1.10% of the Fund’s average daily net assets until at least February 1, 2013 , subject to termination at any time at the option of the Fund."
Either their net expense ratio is wrong in the documentation or 0.17% is the wrapper fee etc. You still have to figure out if there is an explicit fee taken each month or there is a fee embedded in the fund expenses or her company pays for it indirectly.
My understanding is that 3-Year cliff is for vesting after the fund is purchased by employer monies. You said that they will not be matching anything in the first 2 years of employment. They will match 100% of contributed on year 3 but it will vest some time after that. Anyway, you need to clarify matching and vesting details with the employer. Check the documents you are sent. It should be there somewhere.

I would not get too excited about what "might" happen to PRPFX. Yes, the fund has benefitted from a long period of declining interest rates and a period of time when Treasuries have been very popular. The total bond allocation has dropped from about 35% in 2008 to 28% this year. The fund's average duration is between 3 and 4, which puts it in the low end of government bond funds. For example, VUSTX has a duration of more than 15. THAT could be a disaster in the making. I don't think PRPFX's Treasury holdings are any real danger, given Mr. Cuggino's working to reduce duration and total bond holdings. Yes, there is risk with PRPFX, but less risk than owning a portfolio of long-term bonds or a portfolio of growth stocks. The fund's ability to withstand tsunamis is pretty decent. But I would capture gains to keep the allocation percentage in check, just like any fund.

Dear Catch, concerning the distributions and the comments by msg: Most of the charts except those on M* show the price drop at the day of the distribution, so they show correctly the NAV, but they fail to show that the NAV changes in part the fund distributed some dividends and capital gains to your pocket. As a result, many charts except M* may give an impression that the money in a fund do not grow at all, whereas in some cases (such as IVWIX) these funds could have VERY large distributions.

Fairmark site is pretty useful for a lot of tax questions.
http://www.fairmark.com/capgain/capgain.htm
Here on this page:

Capital losses are used first to offset capital gains. If there are no capital gains, or if the capital losses are larger than the capital gains, you can deduct the capital loss against your other income — up to a limit of $3,000 in one year.

Basically, if you do not have enough capital gains to offset, the losses can offset your income. This is my experience while using tax software as well.
Here is another reference:
http://www.bankrate.com/finance/money-guides/capital-losses-can-help-cut-your-tax-bill-1.aspx

• Short-term losses counterbalance those expensive short-term gains. What's left at the end of Part I of Form 8949 is the net short-term capital gain or loss. If there were no gains, then obviously the net would equal the total loss.
  
• Long-term losses are applied to long-term gains. The result, at the end of Part II of Form 8949, is the net long-term capital gain or loss. Again, if you only have a loss, then the net is a negative number.
  
• Next, you combine the short-term and long-term results on Schedule D. At this point, a loss in one section can offset a gain in the other section. For example, if you have a net short-term loss of $1,000 and a net long-term gain of $1,200, then you'll pay tax on only $200.
  
• If there's still a loss, you can deduct up to $3,000 from other income.
  
• If you had a really bad year and ended up with a net loss of more than $3,000, you can carry forward the leftover portion to next year's taxes. The unused loss can be applied to next year's gains as well as up to $3,000 of earned income. A big loss can be used as a deduction indefinitely -- another important reason to keep good records.
  

1. your calculations are correct. and your assumption is correct. maximum tax rate on qualified dividends is 15% in 2012. (scheduled to expire dec 31st and move to ordinary tax rates if no deal passes.)
2. "qualified dividends" is different from "capital gains". the latter could be long-term (also taxed at 15% in 2012 and scheduled to increase to 23.8% in 2013, if no deal is reached); or short-term (always has been and will be at your ordinary tax rate.) These capital gains, whether long or short term, could be offset by capital losses -- dollar for dollar. If your losses exceed your gains in any calendar year, you can ofset up to $3000 against ordinary income and carry over the rest.
two more things, i am not a tax advisor and this is not advice. also, whatever is vanguard's estimate is indeed just an estimate. the final numbers will be reported in tax form next year.

Here is the link for estimated dividend income.
https://personal.vanguard.com/us/insights/article/estimated-yearend-distributions-12072012
In the chart lets look at VGELX for which I have a few questions.
1. Vanguard indictaes the estimated dividend income is $2.25 per share. Lets assume one has 500 shares. That means the estimated dividend income is $1,125. In the column next to estimated dividend is a column "Estimated QDI" and in the case of VGELX, the number is 82%. Does that mean that 82% of $1,125 or $922.50 is the qualified dividend? Also, is the $922.50 taxed at15% for all except one in a 10% or 15% tax bracket (in that case the tax is 0)?
2. Can a qualified gain ($922.50) be offset by a short-term or long-term capital gain carry forward loss? My guess is no, because regardless that it is "qualified", it is still Income, which can't be offset by a capital loss.
Thanks for your thoughts.
Mona

Howdy,
A thank you to all who post the links, start and participate in the many fine commentaries woven into the message threads.
For those who don't know; I ramble away about this and that, at least once each week. The perspectives and investments are based, not upon a formal economic studies background; but from the "School of Hard Knocks & Studies". Of which, this house is still enrolled.
NOTE: This portfolio is designed for retirement, capital preservation and to stay ahead of inflation creep. This is not a buy and hold portfolio, and is subject to change on any given day; based upon perceptions of market directions. All assets in this portfolio are in tax-sheltered accounts; and any fund distributions are reinvested in the funds. Gains or losses are computed from actual account values.
While looking around.....An old children's holiday song lyric goes....."All I want for Christmas is my two front teeth, my two front teeth, my two front teeth....." Perhaps all an investor could want for each and every Christmas, is an average annual return of +8%. The math is simple, but the chore is less so, eh? Going for a net of +2.7% annually could look this way, in the most simple math terms.
--- +8% gross investment return
--- let us throw out 2% of this assuming a fed. taxable bracket of 25% (more for high tax states)
--- we're now at +6%
--- a further reduction of 3.3% for the old inflation hidden tax thingy (3.3 perhaps being a high end average)
--- = a net of +2.7%
Can one live with this return? All answers will be different. One needs to generate a +.031872510% return for each of the average 251 trading days/year to arrive at a 8% return. Well, just a little fun looking at investments from the simple side of life. This house's schedule is already loaded to the maximum through the new year period; and so this report may not be posted in any fullness for the next several weeks. And horror of horrors; we will be traveling upon the highways on the Mayan flip day of December, 21, 2012. We will be "stuck" with our portfolio; regardless of events, as the last week of the year will find us without access to a secure online connection, if any connection at all.
NOTE: for the below sector rotations. Some of the variances in % terms may be beyond normal values, as some numbers will be adjusted for distributions at this time of the year, and reflected in week ending numbers.
The data/numbers below have been updated.
As to sector rotations below (Fidelity funds); for the past week: (Note: any given fund in any of these sectors will have varying degrees of performance based upon where the manager(s) choose to be invested and will not directly reflect upon your particular fund holdings from other vendors.) Sidenote: The average weekly return of 200 combined Fidelity retail funds across all sectors (week avg = - .07%, YTD +12.65%).
--- U.S. equity - 5.36% through + 1.6%, week avg. = - .41% YTD = + 15.05%
--- Int'l equity - 7.21% through + 2.0%, week avg. = - .95% YTD = + 15.61%
--- Select eq. sectors - 3.8% through + 1.4%, week avg. = - .04% YTD = + 15.0%
--- U.S./Int'l bonds - .15% through + .51%, week avg. = + .09% YTD = + 4.2%
--- HY bonds - .20% through + .74%, week avg. = + .33% YTD = + 12.92%
A Decent Overview, M* 1 Month through 5 Year, Multiple Indexes
You may consider our portfolio to be quite boring, but you may be assured that it moves and bends each and every day; from forces beyond our control.
I have added a few blips related to our portfolio and market observations at the below SELLs/BUYs and Portfolio Thoughts.
SELLs/BUYs THIS PAST WEEK: = NONE.

Portfolio Thoughts:
Our holdings had a + .49 % move this past week. As to the bond world. High yield active funds generally were ahead of their ETF cousins, with our holdings mix ranging from +.81% through +1.1% for the week. Our lowest return weekly performer was PLDDX at +.13% for the week. Other holdings: LSBDX at +.66%, PONDX at +.75% and FNMIX at +.51%. The well performing cousin of PTTRX (+.22%) performed a bit less with BOND at +.14% for the week. Many bond sectors were strong performers through Thursday, while retreating on Friday. Even the unloved and lowly respected TIPs related funds of ACITX and FINPX are working hard to return 8% for the year. Not too bad for funds with negative yields, eh? 'Course the yield and pricing is reflected from the current demand. Not bond benchmarks; but broad U.S. equity measures were at, for the week: SP-500 at +.13%, VTI at +.22% while the NASDAQ and related fund sectors were down about 1% from the "Apple" affect and its losses for the week. Some U.S. equity funds hold fairly large positions in Apple stock. One such fund, FCNTX recently held a 13% position. The Latin American sector could be a fund area to watch, going forward, as this area has been weak YTD. There continues to be a wide range of weekly returns between select equity(s) sectors and particular global country sectors. A lot of hot money is still traveling and looking for the best "play". We'll continue to watch; but do not have plans at this time, to enter into equity areas.
Still plodding along, and we will retain the below write from previous weeks; as what we are watching, still applies.
--- commodity pricing, especially the energy and base materials areas; copper and related.
--- the $US broad basket value, and in particular against the Euro and Aussie dollar (EU zone and China/Asia uncertainties).
--- price directions of U.S. treasury's, German bunds, U.K. gilts, Japanese bonds; and continued monitoring of Spanish/Italian bond pricing/yield.
--- what we are watching to help understand the money flows: SHY, IEF, TLT, TIPZ, STPZ, LTPZ, LQD, EMB, HYG, IWM, IYT & VWO; all of which offer insights reflected from the big traders as to the quality/risk, or lack of quality/risk; in various equity/bond sectors.
The Funds Boat is at anchor, riding in the small waves, watching the weather and behind the breakwater barrier. To the high praise of MFO and the members, it is very difficult to find a topic to note here that has not been placed into the discussion boards. Excellence, as usual.
I have retained the following links for those who may choose to do their own holdings comparison against the fund types noted.
The first two links to Bloomberg are for their list of balanced/flexible funds; although I don't always agree with the placement of fund styles in their categories.
Bloomberg Balanced
Bloomberg Flexible
These next two links are for conservative and moderate fund leaders YTD, per MSN.
Conservative Allocation
Moderate Allocation
A reflection upon the links above. We attempt to establish a "benchmark" for our portfolio to help us "see" how our funds are performing. Aside from viewing many funds within the balanced/flexible funds rankings (the above links), a quick and dirty group of 5 funds (below) we watch for psuedo benchmarking are the following:
***Note: these week/YTD's per M*
VWINX .... + .41% week, YTD = + 9.85%
PRPFX .... - .24% week, YTD = + 6.7%
SIRRX ..... + .42% week, YTD = + 7.02%
TRRFX .... + .49% week, YTD = + 10.2%
VTENX ... + .57% week, YTD = + 9.36%
Such are the numerous battles with investments attempting to capture a decent return and minimize the risk.
We live and invest in interesting times, eh? Hey, I probably forgot something; and hopefully the words make some sense. Comments and questions always welcomed.
Good fortune to you, yours and the investments.
Take care,
Catch
---Below is what M* x-ray has attempted to sort for our portfolio, as of Nov. 1, 2012 ---
From what I find, M* has a difficult time sorting out the holdings with bond funds.
U.S./Foreign Stocks 1.9%
Bonds 93.9% ***
Other 4.2%
Not Classified 0.00%
Avg yield = 3.99%
Avg expense = .57%
***about 18% of the bond total are high yield category (equity related cousins)
---This % listing is kinda generic, by fund "name"; which doesn't always imply the holdings, eh?
-Investment grade bond funds 28.2%
-Diversified bond funds 22.4%
-HY/HI bond funds 14.5%
-Total bond funds 32.4%
-Foreign EM/debt bond funds .6%
-U.S./Int'l equity/speciality funds 1.9%
This is our current list: (NOTE: I have added a speciality grouping below for a few of fund types)
---High Yield/High Income Bond funds
FAGIX Fid Capital & Income
SPHIX Fid High Income
FHIIX.LW Fed High Income
DIHYX TransAmerica HY
---Total Bond funds
FTBFX Fid Total
PTTRX Pimco Total
---Investment Grade Bonds
ACITX Amer. Cent. TIPS Bond
DGCIX Delaware Corp. Bd
FBNDX Fid Invest Grade
FINPX Fidelity TIPS Bond
OPBYX Oppenheimer Core Bond
---Global/Diversified Bonds
FSICX Fid Strategic Income
FNMIX Fid New Markets
DPFFX Delaware Diversified
LSBDX Loomis Sayles
PONDX Pimco Income fund (steroid version)
PLDDX Pimco Low Duration (domestic/foreign)
---Speciality Funds (sectors or mixed allocation)
FRIFX Fidelity Real Estate Income (bond/equity mix)
---Equity-Domestic/Foreign
NONE outright, with the exception of equities held inside some of the above funds.

It turns out that RSEIX (Royce Special Equity, Institutional Class) had a LTG distribution last year (2011) of $1.0775 on a reinvestment share price of $19.35, or about 5.57%. That compares with this year's LTG distribution of $1.0981 on a reinvestment price of $20.62, or about 5.33%. So this year is not a one-off, due to a one-time event of money managers expecting cap gains tax increases in 2013.
There is further evidence of the possible cap gains tax increase being a nonevent (as far as RSEIX is concerned). Fundalarm is correct that Royce Special Equity has had negligible distributions in some years. 2010, 2009 - no cap gains, 8-9c in income. But it's varied year by year.
2008 - 69c LTG + 5c STG + 23c income on $13.13 share price (5.26% on LTG, let alone STG and income)
2007 - $2.14 LTG + 18c STG + 14c income on $18.65 share price (11.3% on LTG)
In addition, 2010 had similar uncertainty about cap gains tax rates going up, and that was one of the years with miniscule distributions. Same manager (Dreifus), so the difference is not because the fund had different managers who took a different approach to cap gains.
What I think we're seeing here, and I'm as susceptible to it as anyone else, is confirmation bias. The tendency to see facts that confirm our hypothesis (e.g. that for most of the immediately preceding few years there were almost no cap gains, "confirming" a change in pattern), and ignoring facts that contradict our hypothesis (see above).
The risk of selective use of facts (albeit unintentional) is why I feel it is so important to look at raw numbers, discount anecdotal information, and challenge one's own assumptions. I can get off my soapbox now - not picking on fundalarm here, I really believe that we all do this to some degree, and this is just my anecdotal example used as "proof". :-)

Third Quarter Report 2012
http://www.oakmark.com/reports/2012_q3/12-15943-1_enh_C6-1.pdf
As of June 30, 2012, Oakmark Equity and Income Fund Holdings:
Common Stock 70.1%. Fixed Income 22.4%. Short Term Investments 6.4%. Approximate cash on hand 1.1%
Re Above: Fixed Income (22.4%) With the exception of less than 1% invested in Norwegian government notes, this consists of U.S. government debt obligations. Of these TIPS comprise just under 15% of the total. The TIPS also have the longest dated maturities, some extending out to 2020. The remainder are mostly Treasury issues with substantially shorter maturities - most 3 years or less.
Re Above: Short Term investments (6.4%) These appear to be about evenly split between a repurchase agreement involving Federal Home Loan Bank short duration securities and Canadian government short term bonds. Less than 1% consists of commercial paper.
Re Above: We can infer the fund does not hold any junk bonds.
In his commentary, Clyde McGreggor, Portfolio Manager notes the fund's "... low fixed income duration of 1.7 years." If this sounds at variance with the stated maturities above, it's because maturity and duration are two different animals.
Link: The difference between bond duration and maturity
http://moneycation.blogspot.com/2011/02/difference-between-duration-and.html

i have held rseix for years, the fund had negligible distibutions, if any. it is pretty much buy and hold with very low turnover. Today though it distributed a fairly large amount of dividends and long-term capital gains (mostly the latter). So the investment manager specifically now realized all those gains incurred over the years. another example how upcoming higher taxes change behavior of individuals, corporations and, in this case, money managers. fwiw.

Brown Capital Management:
http://www.browncapital.com/distributions.html
Sequoia Fund (on first page):
http://www.sequoiafund.com/Reports/Quarterly/Sep12.pdf

"if I buy a US Treasury Bond Index fund...", the fund is marked to market every day and you and other investors can redeem at each day's NAV, which means you can loose a small (or large) fortune should interest rates rise. If a fund is called something like Long Duration Treasury Fund, how nimble do you think the manager could be? He can't buy equities or high yield even if he sees the interest rate freight train coming. the 2% coupons will not protect against a huge loss of capital. And don't forget that as soon as it starts plunging, the investors will want their money back, which means, even if you're very patient and prudent, the fund manager will be selling long bonds before maturity at firesale prices to pay other investors and the fund's value will go down. Never confuse a bond with a bond fund.

In my mind it all depends on your penchant for holding Japanese equities. MAPIX is there with +25% Japan stocks presumably for the dividends they generate in tune with the fund being called the Asian dividend fund. MASCX, on the other hand, eschews Japan for the most part and doesn't appear to miss them all that much. I am hard pressed to pound the table for one over the other outside of this. I bought and still hold MAPIX simply because at inception I thought they were getting Japanese stocks at bargain prices and I was looking for a little capital appreciation to go along with a hopefully rising dividend. I haven't really gotten either but I can't say that I am disappointed all that much.
If I had an over supply of investment funds I might own both just to give me a sense of being diversified even though I think that's mostly an illusion in my own mind. Both funds have just been solid, albeit unspectacular, offerings which suits me just fine.

The high yield bond sector bucked the trend on Monday with the HY sector moving in the opposite direction of U.S. equities.
HYG = +.51%
JNK = +.38%
These two were likely candidates for hedge funds and other large trading groups. Profit taking for this daily blip will likely show its face soon enough.
Some of this move spilled into the active managed HY bond funds where gains were in the +.11through +.15 ranges for the more plain jane HY bond funds.
A day, so not a trend; but an interesting situation for those who monitor this area.
Regards,
Catch

Reply to @AndyJ: you're right about the cash driving down the yield, but it is also a function of capital appreciation. if you buy a fund investing in bonds paying (i am simplifying here) fixed coupons at inception, let's say $100 monthly, and the fund's assets appreciate, but the underlying bonds still pay the same $100 monthly, then your yield goes down to accommodate the price appreciation. that's why Total Return is what matters in investing -- capital appreciation + interest (or dividend, for equities). Many bond funds had huge capital appreciation, but there is a limit to it, that's why going forward all you can get is current yield. (i am optimistically rejecting a huge spike in interest rate scenario and predicting continuous muddle-thru.)

Hi bee,

fixed-income investors are going to likely earn their coupon with less and less prospect for capital appreciation

An aside, which has been discussed here; are the millions of others who are not investors, but those perhaps ages 65-100 years who will travel in few other investment areas other than CD's at their local bank or credit union. These folks are really in the money grinder, as the paltry rates of return, which in most cases will also be taxed by federal, state and/or local governments will also be offset by inflation creep. A most sad state of affairs for too many good folks.
Take care,
Catch

Hi Ted,
Many of us here are with you on this manager and all of his fund's iterations (PIMIX, PONAX, PONCX, PONDX, PONPX, PONRX and PDI (CEF version)).
I believe PIMIX is available through Vanguard brokerage:
click here
His ending comment is worth noting:
"When you look at the trajectory of yields of the past few years, we are certainly at a point now where we are not at the destination, but we are pretty close to the destination," Ivascyn says. "Increasingly, fixed-income investors are going to likely earn their coupon with less and less prospect for capital appreciation." That means he'll have to sift very carefully through the opportunities.

http://www.sec.gov/Archives/edgar/data/1342947/000089109212007111/e50948_497.htm
The following information supplements, and to the extent inconsistent therewith, supersedes, certain information in the Prospectus. Defined terms not otherwise defined in this supplement have the same meaning as set forth in the Prospectus.
Effective close of business on November 30, 2012, and subject to certain exceptions, BBH Core Select (the “Fund”) is closed to new investors. An existing investor that has been a shareholder in the Fund continuously since November 30, 2012, either directly or as the beneficial owner of shares held in another account (an “Existing Shareholder”), may make additional investments in the Fund and reinvest dividends and capital gain distributions. In addition, an employee benefit plan that is an Existing Shareholder may continue to buy shares in the ordinary course of the plan’s operations, even for new plan participants. The Fund’s closure to new investors does not restrict any shareholders from redeeming shares of the Fund.
In addition to Existing Shareholders, the Fund will remain open to:
• shareholders of any of the funds in the BBH Trust that have at the time of investment in the Fund a combined balance of $100,000 in any of the funds in the BBH Trust (in their own name or as beneficial owner of shares held in someone else’s name);
• shareholders that received shares of the Fund after November 30, 2012, as a gift or inheritance from an
Existing Shareholder of the Fund;
• an account for an employee benefit plan sponsored by an organization that is an Existing Shareholder or an affiliated organization;
• an employee benefit plan or other type of corporate or charitable trust account sponsored by or affiliated with an organization that also sponsors or is affiliated with (or is related to an organization that sponsors or is affiliated with) another employee benefit plan or corporate or charitable trust account that is an Existing Shareholder of the Fund;
• a director or officer of the BBH Trust, or a partner or employee of BBH or its affiliates, or a member of the immediate family of any of those persons;
• a client of BBH or entity that otherwise has an existing business relationship with BBH, provided that, in the judgment of BBH, the proposed investment in the Fund would not adversely affect BBH’s ability to manage the Fund effectively;
• a client of a financial advisor or a financial planner, or an affiliate of such financial advisor or financial planner, that has been notified by BBH that its clients may invest in the Fund;
• an investor purchasing Fund shares through a sponsored fee-based program pursuant to an agreement with BBH, BBH Trust or its distributor, provided that the sponsor has been specifically notified in writing that shares may continue to be offered through such program;
• a client of an institutional consultant, provided that BBH has notified the consultant in writing that the client may invest in the Fund.
The Fund will accept new accounts for an employee benefit plan if the employee benefit plan is sponsored by an organization that also sponsors (or is affiliated with a sponsor of) another plan that is an Existing Shareholder. In addition, the Fund may accept new accounts for an employee benefit plan if the plan is a client of an institutional consultant or a Registered Investment Advisor that has an existing business relationship with BBH or BBH Trust, provided that BBH or BBH Trust has notified that consultant or Registered Investment Advisor in writing that the plan may invest in the Fund.
Investors may be asked to verify that they meet one of the exceptions above prior to opening a new account in the Fund. The Fund may permit you to open a new account if the Fund reasonably believes that you are eligible. The Fund also may decline to permit you to open a new account if the Fund believes that doing so would be in the best interests of the Fund and its shareholders, even if you would be eligible to open a new account under these exceptions.
The Fund’s ability to enforce the closure of the Fund and the exceptions listed above with respect to accounts held by financial intermediaries may vary depending on the systems capabilities of those intermediaries, applicable contractual and legal restrictions and cooperation of those intermediaries.
To ask questions about your ability to invest in the Fund, please call BBH at 1-800-625-5759.
PLEASE RETAIN THIS SUPPLEMENT FOR FUTURE REFERENCE.

Reply to @Investor: nope. pure tax-related decisions. taking long-term gains this year is almost done. much of re-investment is on hold until clarity in further tax developments.