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Re: The dangerous practice of rebalancing...

What if the answer to rebalancing in a falling market to double your rebalancing schedule?

For example, if you rebalance every year, do it every two years. If you rebalance every 6 months, do it every 12 months. Etc.
by JustinR
Mon Sep 15, 2014 3:40 am
 
Forum: Investing - Theory, News & General
Topic: The dangerous practice of rebalancing...
Replies: 179
Views: 10580

Re: "Why 97% of People Don't Use 529 College Savings Plans."

I'm in California. I haven't read very much about 529 plans, is it worth pursuing if you've maxed out all your other retirement funds?
by JustinR
Wed Sep 10, 2014 8:36 am
 
Forum: Investing - Theory, News & General
Topic: "Why 97% of People Don't Use 529 College Savings Plans."
Replies: 110
Views: 10117

Couples of diff ages: how do you handle asset allocations?

Do you average the two retirement dates, or do you account for the difference in ages in some way?
by JustinR
Sat Sep 06, 2014 6:08 am
 
Forum: Investing - Theory, News & General
Topic: Couples of diff ages: how do you handle asset allocations?
Replies: 13
Views: 1157

Re: Equities in tax-advantaged = bad?

https://personal.vanguard.com/us/insights/article/tax-time-kilroy-082014 Compare that with an investment in a broad stock index fund. The majority of its return over time comes from price appreciation, which is taxed as a capital gain. If you have held the fund for more than a year, the return is c...
by JustinR
Fri Sep 05, 2014 10:21 pm
 
Forum: Investing - Theory, News & General
Topic: Equities in tax-advantaged = bad?
Replies: 11
Views: 796

Re: Equities in tax-advantaged = bad?

Raladic wrote:The key word here is tax-deferred (like Traditional IRA) because you pay income tax at withdrawal.
It's still better in a tax-free account (like Roth IRA) which is growth untaxed.


So tax-free > taxable > tax-deferred?
by JustinR
Fri Sep 05, 2014 12:04 am
 
Forum: Investing - Theory, News & General
Topic: Equities in tax-advantaged = bad?
Replies: 11
Views: 796

Equities in tax-advantaged = bad?

https://personal.vanguard.com/us/insights/article/tax-time-kilroy-082014 Compare that with an investment in a broad stock index fund. The majority of its return over time comes from price appreciation, which is taxed as a capital gain. If you have held the fund for more than a year, the return is co...
by JustinR
Thu Sep 04, 2014 11:52 pm
 
Forum: Investing - Theory, News & General
Topic: Equities in tax-advantaged = bad?
Replies: 11
Views: 796

Poll: What is your International allocation?

Bogleheads, let's see what your international exposure is

Edit: For a lot of people, this consideration is only for equities, but if you do split domestic/intl for your bonds too then feel free to include bonds as well.
by JustinR
Sun Aug 10, 2014 11:19 pm
 
Forum: Investing - Theory, News & General
Topic: Poll: What is your International allocation?
Replies: 5
Views: 611

Re: Going 60+% international? (US resident)

Mr. Bogle, in Common Sense on Mutual Funds, devotes an entire chapter to Global Investing. You may or may not agree, but after reading his chapter you will realize that he is extremely well informed on the subject and did not come to his recommendation lightly ("up to 20% international")....
by JustinR
Sun Aug 10, 2014 8:34 am
 
Forum: Investing - Theory, News & General
Topic: Going 60+% international? (US resident)
Replies: 83
Views: 6016

Re: Going 60+% international? (US resident)

Mr. Bogle, in Common Sense on Mutual Funds, devotes an entire chapter to Global Investing. You may or may not agree, but after reading his chapter you will realize that he is extremely well informed on the subject and did not come to his recommendation lightly ("up to 20% international")....
by JustinR
Sun Aug 10, 2014 8:05 am
 
Forum: Investing - Theory, News & General
Topic: Going 60+% international? (US resident)
Replies: 83
Views: 6016

Re: International investing. A good call by our mentor.

I'm confused: isn't the main Boglehead philosophy to buy the market and leave your biases at the door?
by JustinR
Fri Aug 08, 2014 2:00 am
 
Forum: Investing - Theory, News & General
Topic: International investing. A good call by our mentor.
Replies: 145
Views: 12511

Re: Ultimate Buy and Hold - 8 slices vs 4

This is an excellent thread and very informative. Merriman now recommends 10 funds (adding domestic and international REIT). I wonder how the 4 fund approach recommended by Trev performs vs. the 10 fund recommendation. Perhaps there is little material difference. http://paulmerriman.com/pauls-mutua...
by JustinR
Sun Aug 03, 2014 7:00 am
 
Forum: Investing - Theory, News & General
Topic: Ultimate Buy and Hold - 8 slices vs 4
Replies: 624
Views: 213752

Re: Beware Vanguard DOES NOT update all your account values

From what I can guess, the reason it does this is because on the Holdings page, the numbers are updated live. The balance totals are like an excel sheet formula, simply multiplying the shares field with the price field to get you a number. For the other pages, instead of doing any math, it's pulling...
by JustinR
Sun Apr 20, 2014 11:21 pm
 
Forum: Investing - Theory, News & General
Topic: Beware Vanguard DOES NOT update all your account values
Replies: 56
Views: 5655

Re: Green Bogleheads discussing Target Stock

You are not smarter than the market.

Target's future has already been priced into the current price by the market.
by JustinR
Mon Mar 17, 2014 4:26 am
 
Forum: Investing - Theory, News & General
Topic: Green Bogleheads discussing Target Stock
Replies: 36
Views: 2682

I Bonds - buy now or wait for May?

Or wait for April to see the new inflation rate (does this matter?)

Or half now and half in May?
by JustinR
Mon Mar 10, 2014 1:54 am
 
Forum: Investing - Theory, News & General
Topic: I Bonds - buy now or wait for May?
Replies: 25
Views: 4728

Gross vs Net Expense Ratio?

Which is the one that Bogleheads look at?

Vanguard calls it "Total Expense Ratio", is it referring to gross or net?
by JustinR
Sat Feb 22, 2014 9:00 am
 
Forum: Investing - Theory, News & General
Topic: Gross vs Net Expense Ratio?
Replies: 2
Views: 328

Re: Article:How costly is the end of the year match

A good article which points out AOL may have done us a favor . http://www.nytimes.com/2014/02/15/your-money/beware-of-the-end-of-year-401-k-match.html?rref=business&module=Ribbon&version=origin&region=Header&action=click&contentCollection=Business%20Day&pgtype=article Not ex...
by JustinR
Mon Feb 17, 2014 6:22 am
 
Forum: Investing - Theory, News & General
Topic: Article:How costly is the end of the year match
Replies: 29
Views: 2490

Re: Are stock returns compound returns?

Disregarding dividends, stocks don't compound.

There's nothing to compound, people just call it that because they calculate returns annually.

Without dividends, a share simply gains or loses value. Am I wrong in this?
by JustinR
Sat Feb 15, 2014 7:01 pm
 
Forum: Investing - Theory, News & General
Topic: Are stock returns compound returns?
Replies: 13
Views: 1447

Re: Net Worth Survey, 2014 Edition

For simplicity's sake, there should be three fields:

- Value of investments
- Value of other assets
- Debt

Make everything else, including SS and pensions, an optional field.
by JustinR
Sun Jan 05, 2014 5:50 pm
 
Forum: Investing - Theory, News & General
Topic: Net Worth Survey, 2014 Edition
Replies: 149
Views: 22251

Re: Invest all at once or DCA-one of most asked questions I

I've quite honestly usually skip the DCA threads--for some reason I read this one. Anyhow, It seems to me that the advocates of LS often skip over a critical question--lump sum into what? sperry8 above gives a good example of a realistic lump-sum scenario (selling a business). Let me make up some o...
by JustinR
Sun Jan 05, 2014 7:22 am
 
Forum: Investing - Theory, News & General
Topic: Invest all at once or DCA-one of most asked questions I get
Replies: 125
Views: 5590

Re: Invest all at once or DCA-one of most asked questions I

DCA makes zero sense. None. It makes negative sense. It's a completely flawed method that only exists because it appeals to human emotions. It's a purely emotional method of investing. Lump sum, on the other hand, makes a lot of sense. We invest because we expect the market to go up. If you don't ex...
by JustinR
Sat Jan 04, 2014 5:45 am
 
Forum: Investing - Theory, News & General
Topic: Invest all at once or DCA-one of most asked questions I get
Replies: 125
Views: 5590

Re: What was your 2013 return?

MnD wrote:Here's a link on how to compute your return using Excel xirr
http://whitecoatinvestor.com/how-to-cal ... -function/


Do distributions that were deposited into your bank (instead of reinvested) count as withdrawals?
by JustinR
Thu Jan 02, 2014 6:37 pm
 
Forum: Investing - Theory, News & General
Topic: [Poll] What was your 2013 return?
Replies: 209
Views: 9377

Last 401k contribution of 2013 gets processed in January?

So there's typically a week delay after your paycheck in which the 401k administrator actually processes the transaction.

If this takes place in January, does it count as a 2013 contribution still?
by JustinR
Wed Jan 01, 2014 6:00 am
 
Forum: Investing - Theory, News & General
Topic: Last 401k contribution of 2013 gets processed in January?
Replies: 1
Views: 229

Re: buy/hold vs. buy/hold/rebalance

cowboyj65 wrote:It is not intuitively evident to me how changing the percentage of my portfolio in a sector that is currently doing well (or not doing well), in order to get back to my AA, is better in the “long term” than just “holding”.

Define "better."
by JustinR
Sun Dec 08, 2013 8:11 am
 
Forum: Investing - Theory, News & General
Topic: buy/hold vs. buy/hold/rebalance
Replies: 64
Views: 3771

Re: "There is a rebalancing bonus ... false"

Can someone explain the above like I'm five years old?
by JustinR
Thu Nov 14, 2013 1:23 pm
 
Forum: Investing - Theory, News & General
Topic: "There is a rebalancing bonus ... false"
Replies: 188
Views: 13802

What are the chances of HSA reimbursement laws changing?

Say you let your HSA grow tax-free and pay for your medical bills using your taxed income, saving all your receipts and planning to reimburse yourself after you retire. Is there a chance that the government could change the laws between now and then, screwing you out of reimbursing yourself for prev...
by JustinR
Mon Nov 11, 2013 11:26 am
 
Forum: Investing - Theory, News & General
Topic: What are the chances of HSA reimbursement laws changing?
Replies: 5
Views: 439

Re: "There is a rebalancing bonus ... false"

So...what's the consensus? Is or isn't there a rebalancing bonus? It depends. If investments fluctuate with no real trend, there is a bonus. If investments move with a trend, there may even be a penalty. Suppose you have two investments, A and B. Here are their prices: Case 1: Start Mid End A $1.00...
by JustinR
Sun Nov 10, 2013 5:06 am
 
Forum: Investing - Theory, News & General
Topic: "There is a rebalancing bonus ... false"
Replies: 188
Views: 13802

Re: "There is a rebalancing bonus ... false"

So...what's the consensus?

Is or isn't there a rebalancing bonus?
by JustinR
Sat Nov 09, 2013 10:38 pm
 
Forum: Investing - Theory, News & General
Topic: "There is a rebalancing bonus ... false"
Replies: 188
Views: 13802

Some HSA questions

1) When you withdraw for non-medical expenses, are you federally taxed on earnings (capital gains/dividends) + principle, or just the principle? I keep reading that "interest and earnings are tax-free", but it's unclear if this applies to non-medical distributions. 2) Am I correct in that ...
by JustinR
Mon Nov 04, 2013 6:22 am
 
Forum: Investing - Help with Personal Investments
Topic: Some HSA questions
Replies: 4
Views: 447

Re: HSA help

Another option... http://www.alliantcreditunion.org/depositsinvestments/healthsavings/ Here's a list of funds: https://www.savedaily.com/partners/acu/funds.asp?Type=30 The monthly fee to invest is $5.95 ($71.4/yr) and you have to keep $1000 in savings: The HSA Investment option through Self Managed ...
by JustinR
Sun Nov 03, 2013 7:52 pm
 
Forum: Investing - Help with Personal Investments
Topic: HSA help
Replies: 16
Views: 1991

Re: Feeling like I am forced to contribute more to retiremen

It'll pay off 40 years from now.

Saving for retirement isn't really fun for those of us who are sooooo far away from that day.
by JustinR
Sat Nov 02, 2013 11:20 am
 
Forum: Investing - Help with Personal Investments
Topic: Feeling like I am forced to contribute more to retirement?
Replies: 82
Views: 6465

Re: HSA investments- are you taxed when you sell/exchange fu

1) When you withdraw for non-medical expenses, are you federally taxed on earnings (capital gains/dividends) + principle, or just the principle? I keep reading that "interest and earnings are tax-free", but it's unclear if this applies to non-medical distributions. 2) Am I correct in that ...
by JustinR
Sat Nov 02, 2013 9:50 am
 
Forum: Investing - Help with Personal Investments
Topic: HSA investments- are you taxed when you sell/exchange funds?
Replies: 6
Views: 682

Re: HSAs in California

If you withdraw from your HSA for purposes other than medical expenses, you will pay federal tax on the withdrawals. If you hold stocks in your HSA and there is a stock-market boom, your HSA may be more than enough to cover your medical expenses, so you will have to make some taxable withdrawals. I...
by JustinR
Fri Nov 01, 2013 3:53 am
 
Forum: Personal Finance (Not Investing)
Topic: HSAs in California
Replies: 32
Views: 4333

HSA investments- are you taxed when you sell/exchange funds?

Are you taxed when you exchange funds in an HSA, or is it tax-free like a Roth IRA and 401k?

I'm wondering if an HSA investment account is a good place to do rebalancing.
by JustinR
Thu Oct 31, 2013 7:58 am
 
Forum: Investing - Help with Personal Investments
Topic: HSA investments- are you taxed when you sell/exchange funds?
Replies: 6
Views: 682

Re: A Social Security "working couple bonus?"

Edit: Ooh right, I divided the wrong way.
by JustinR
Sun Oct 27, 2013 12:11 pm
 
Forum: Investing - Theory, News & General
Topic: A Social Security "working couple bonus?"
Replies: 18
Views: 1700

Re: HSAs in California

So is there any point of using an HSA if you live in California, for either investing purposes or medical purposes? You can invest your HSA in Treasury bonds or TIPS, so that gains on the HSA will not be taxable in California either. (And TIPS are a particularly good choice for an HSA, as they redu...
by JustinR
Sun Oct 27, 2013 11:24 am
 
Forum: Personal Finance (Not Investing)
Topic: HSAs in California
Replies: 32
Views: 4333

Re: HSAs in California

So is there any point of using an HSA if you live in California, for either investing purposes or medical purposes? You can invest your HSA in Treasury bonds or TIPS, so that gains on the HSA will not be taxable in California either. (And TIPS are a particularly good choice for an HSA, as they redu...
by JustinR
Sat Oct 26, 2013 4:49 am
 
Forum: Personal Finance (Not Investing)
Topic: HSAs in California
Replies: 32
Views: 4333

Re: Net Worth Survey 2014

- Would cash be included in "portfolio" or "other assets"? The more specific you get with each question, the better I think.

- For Social Security, shouldn't it also be "must be receiving, not anticipated" like inheritances?
by JustinR
Sat Oct 26, 2013 12:44 am
 
Forum: Investing - Theory, News & General
Topic: Net Worth Survey 2014
Replies: 58
Views: 9125

Re: Improved Net Worth by Age [and plot]

When you do the new survey, please make sure to leave out pensions and social security , and have it in giant red letters on the actual survey. For the younger crowd, we have no idea what either of those entail and it makes the whole comparison among the ages apples and oranges if older people are ...
by JustinR
Thu Oct 24, 2013 4:09 am
 
Forum: Investing - Theory, News & General
Topic: Improved Net Worth by Age [and plot]
Replies: 250
Views: 38217

Re: Improved Net Worth by Age [and plot]

how do we update our entries? At this point we'd like each user to just create one entry. BigFoot48 and I are working on creating a new survey starting 1/1/2014 and will be asking for feedback soon. When you do the new survey, please make sure to leave out pensions and social security , and have it...
by JustinR
Wed Oct 23, 2013 6:22 am
 
Forum: Investing - Theory, News & General
Topic: Improved Net Worth by Age [and plot]
Replies: 250
Views: 38217

Re: Ultimate Buy and Hold - 8 slices vs 4

25% - VTSAX / VINIX (Total Stock Market) 25% - VTIAX / VFWAX / VFWSX (Total International Stock Index) 25% - VSIAX / VISVX (Small-Cap Value Index) 25% - VFSVX (FTSE All-World ex-US Small-Cap Index) The different funds within each type are usually classes of the same fund from my taxable/ira/401k or...
by JustinR
Tue Sep 17, 2013 10:30 am
 
Forum: Investing - Theory, News & General
Topic: Ultimate Buy and Hold - 8 slices vs 4
Replies: 624
Views: 213752

Re: Indexing and Past Performance

Isn't the fact that we expect the market to go up in the future (or else we wouldn't be investing) based on past performance?
by JustinR
Mon Sep 16, 2013 8:55 am
 
Forum: Investing - Theory, News & General
Topic: Indexing and Past Performance
Replies: 15
Views: 864

Are dividend distribution dates a concern for Roth IRA/401k?

I know that in taxable you should wait until after the distribution to buy, and before to sell. Does this apply to a Roth IRA or 401k?
by JustinR
Mon Sep 16, 2013 5:32 am
 
Forum: Investing - Theory, News & General
Topic: Are dividend distribution dates a concern for Roth IRA/401k?
Replies: 3
Views: 267

Re: Ultimate Buy and Hold - 8 slices vs 4

I've been doing this strat for ~2-3 years now. I want to reevaluate the funds I chose. I noticed from another thread that Trev had different fund choices. 17.5% VTRIX, 17.5% VFSVX, 17.5% VFINX, 17.5% VISVX... My Equity allocation exactly... except I use Large Cap Index instead of 500 Index. Get a fe...
by JustinR
Mon Sep 16, 2013 4:53 am
 
Forum: Investing - Theory, News & General
Topic: Ultimate Buy and Hold - 8 slices vs 4
Replies: 624
Views: 213752

Re: Is your fund is declaring a quarterly dividend in Septem

Thanks for the post. Following advice I've seen on the forum, I don't re-invest dividends automatically, and steer dividends and other cash to funds/ETFs that are below allocation. Question: Is there a rule of thumb as to when one should invest cash flows or dividends with respect to quarterly divi...
by JustinR
Sat Sep 07, 2013 4:39 pm
 
Forum: Investing - Theory, News & General
Topic: Is your fund is declaring a quarterly dividend in September?
Replies: 26
Views: 4150

Re: How much do you factor past performance in fund decision

I'm currently trying to decide between two funds for my 401k bond allocation: PIMCO Total Return Fund Institutional (PTTRX) SSgA U.S. Bond Index Fund - Class C What is your Fixed Income % of total portfolio ?? ⋅ What truly matters, for someone who is young(er) and accumulating over the lo...
by JustinR
Thu Sep 05, 2013 11:34 pm
 
Forum: Investing - Theory, News & General
Topic: How much do you factor past performance in fund decisions?
Replies: 25
Views: 1763

Re: How much do you factor past performance in fund decision

On the subject question, I learned the hard way. In general my criteria for what to buy are 1) is the asset class part of my plan. 2) is there a low cost, passively-managed option available (index funds generally preferred, but not exclusively). I use value averaging/ongoing rebalance with my new c...
by JustinR
Tue Sep 03, 2013 10:53 pm
 
Forum: Investing - Theory, News & General
Topic: How much do you factor past performance in fund decisions?
Replies: 25
Views: 1763

Re: Does reinvesting dividends/capital gains in an IRA count

if you have non-ira account funds auto-invest in your IRA, then that's a contribution. Thank you. If I do this (fund my IRA by diverting distributions from my taxable account), I wonder if Vanguard would automatically shut me off at $5500. I plan on topping it off at the end of the year. Do...
by JustinR
Sun Sep 01, 2013 8:35 pm
 
Forum: Investing - Theory, News & General
Topic: Does reinvesting dividends/capital gains in an IRA count?
Replies: 3
Views: 411

Does reinvesting dividends/capital gains in an IRA count?

Do reinvestments of dividends and capital gains count as a contribution in your Roth IRA? If you've already contributed the max for the year, and more is auto-reinvested by Vanguard during the year, what happens? On a similar note, does reinvesting dividends/capital gains automatically from OTHER fu...
by JustinR
Sun Sep 01, 2013 8:23 pm
 
Forum: Investing - Theory, News & General
Topic: Does reinvesting dividends/capital gains in an IRA count?
Replies: 3
Views: 411

Re: How much do you factor past performance in fund decision

Why not pull up a M* chart of them for the period of 2003 (as an example) through now, paying close attention to what happened in the 2007 -2008 crunch? I can't find any annual charts for the SSgA fund for some reason. But here's PTTRX: http://i.imgur.com/Qigl9X7.png http://quote.morningstar.com/fu...
by JustinR
Sun Sep 01, 2013 10:05 am
 
Forum: Investing - Theory, News & General
Topic: How much do you factor past performance in fund decisions?
Replies: 25
Views: 1763

How much do you factor past performance in fund decisions?

I'm currently trying to decide between two funds for my 401k bond allocation: PIMCO Total Return Fund Institutional (PTTRX) ER: 0.46% 1yr perf: 10.36% 5yr: 8.34% 10yr: 6.82% SSgA U.S. Bond Index Fund - Class C ER: 0.06% 1yr: 4.15% 5yr: 6.04% 10yr: 5.24% Benchmark Barclays US Aggregate Bond TR USD 1y...
by JustinR
Sun Sep 01, 2013 7:52 am
 
Forum: Investing - Theory, News & General
Topic: How much do you factor past performance in fund decisions?
Replies: 25
Views: 1763
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