Search found 5658 matches

by Kevin M
Wed Sep 02, 2015 9:20 pm
Forum: Investing - Help with Personal Investments
Topic: Co-Workers Think I'm Doomed Based on Portfolio Perf.
Replies: 44
Views: 4343

Re: Co-Workers Think I'm Doomed Based on Portfolio Perf.

They were always talking about how they were up 9% or 12%. And I was never getting returns like that <snip> . Well, you actually have been getting returns like that! As of December 31, 2014, annualized 5-year return for L 2030 was 9.92%, and 3-year annualized return was 12.68%. Your personal rate o...
by Kevin M
Wed Sep 02, 2015 2:56 pm
Forum: Investing - Theory, News & General
Topic: Does anyone buy individual bonds and CDs?
Replies: 32
Views: 2661

Re: Does anyone buy individual bonds and CDs?

If the price is $97 per bond why would buying 4 cost $3880 and not $388? I'm looking at the bond desk and every single bond/cd has a face value of $100. This is just the way bonds and CDs are quoted. Think of 100 as 100% of par/face value. Each individual bond is $1,000, so 97 is 97% * $1,000 = $97...
by Kevin M
Wed Sep 02, 2015 2:53 pm
Forum: Investing - Help with Personal Investments
Topic: Co-Workers Think I'm Doomed Based on Portfolio Perf.
Replies: 44
Views: 4343

Re: Co-Workers Think I'm Doomed Based on Portfolio Perf.

Also, the I Fund doesn't have emerging markets. Has international minus emerging markets been bad too? In recent years, compared to US stocks, yes. Just look at the TSP fund returns: TSP: Summary of Returns . These are as of December 2014. YTD, I Fund has done somewhat better than C Fund, but not e...
by Kevin M
Wed Sep 02, 2015 2:29 pm
Forum: Investing - Help with Personal Investments
Topic: Roth conversion/recharacterization game or 0% cap gains tax rate
Replies: 7
Views: 580

Re: Roth conversion/recharacterization game or 0% cap gains tax rate

I do like the idea of doing some of both (TGH + Roth convert). The multiple conversion horse race is too bothersome for my taste. YMMV. Thanks for the input. I'm starting to agree about the horse race, especially if the Roth conversion amount ends up being only $10K, or even less, as I'm leaning to...
by Kevin M
Wed Sep 02, 2015 1:46 pm
Forum: Investing - Theory, News & General
Topic: Dave Ramsey's Advice - Evaluated with Actual Returns from His Company's 401K
Replies: 20
Views: 2505

Re: Dave Ramsey's Advice - Evaluated with Actual Returns from His Company's 401K

In selecting the best of the worst funds in my daughter's lousy 401k (no low-cost index funds), we selected American Funds EuroPacific Growth Fund (RERBX) for international. Why? Because when we looked, it had tracked Vanguard Total International Stock Index fund (VGTSX) quite closely over the previ...
by Kevin M
Tue Sep 01, 2015 9:53 pm
Forum: Investing - Theory, News & General
Topic: "Investors are fleeing once-popular emerging markets."
Replies: 50
Views: 5036

Re: "Investors are fleeing once-popular emerging markets."

My emerging markets funds have been the only ones with any losses in recent years, so I've taken advantage of the recent swoon to do some tax loss harvesting, and actually have picked up a few extra shares in IRA accounts.

Kevin
by Kevin M
Tue Sep 01, 2015 9:50 pm
Forum: Personal Finance (Not Investing)
Topic: Chip credit cards, do I need to get a PIN?
Replies: 38
Views: 2079

Re: Chip credit cards, do I need to get a PIN?

My chip and signature Capital One card worked fine in the ticket machines in Nice, France. We also took a Schwab bank/debit card, since it is chip and PIN, thinking we would use it in the train ticket machines, but as someone alluded to early on, it is online PIN, and the kiosks or whatever may requ...
by Kevin M
Tue Sep 01, 2015 9:34 pm
Forum: Investing - Help with Personal Investments
Topic: Co-Workers Think I'm Doomed Based on Portfolio Perf.
Replies: 44
Views: 4343

Re: Co-Workers Think I'm Doomed Based on Portfolio Perf.

In 2008 I don't remember hearing any braggers, but in 2009 I heard alot of bragging. I guess some folks are good timers...if there is such a thing. I guess I'll keep the slow and steady pace and hope for the best. Just wanted to make sure I wasn't some kind of colossal moron for not shifting everyt...
by Kevin M
Tue Sep 01, 2015 9:02 pm
Forum: Investing - Help with Personal Investments
Topic: Co-Workers Think I'm Doomed Based on Portfolio Perf.
Replies: 44
Views: 4343

Re: Co-Workers Think I'm Doomed Based on Portfolio Perf.

L2030 is just a combination of the other funds mentioned, including C (Common stock = S&P 500) and I (International stock: EAFE index), and the other individual funds available (G, F, S). If your coworkers have done better over some time period, it's just because they have taken more risk by bei...
by Kevin M
Tue Sep 01, 2015 8:43 pm
Forum: Investing - Help with Personal Investments
Topic: Roth conversion/recharacterization game or 0% cap gains tax rate
Replies: 7
Views: 580

Re: Roth conversion/recharacterization game or 0% cap gains tax rate

Why do you want to lock in capital gains? The objective is not to lock in gains, but to pay tax at a 0% rate now instead of a 15% rate in the future. Knowing whether this or doing a Roth conversion to top of 15% bracket is better seems to require assumptions about growth rates, etc. Off the top of ...
by Kevin M
Tue Sep 01, 2015 6:53 pm
Forum: Investing - Help with Personal Investments
Topic: Roth conversion/recharacterization game or 0% cap gains tax rate
Replies: 7
Views: 580

Re: Roth conversion/recharacterization game or 0% cap gains tax rate

Now I'm thinking about the alternative of selling mutual funds in taxable accounts up to limit for the 0% federal capital gains tax rate. Either this or Roth conversions will result in same state taxes, as California gives no special treatment to either, so from state tax perspective, it's a wash. H...
by Kevin M
Tue Sep 01, 2015 3:25 pm
Forum: Personal Finance (Not Investing)
Topic: Saving for a home down payment using Roth IRA
Replies: 5
Views: 569

Re: Saving for a home down payment using Roth IRA

Regarding using NY Muni bonds in my taxable account for save for a down payment, would something like Vanguard New York Long-Term Tax-Exempt Fund Investor Shares (VNYTX) be acceptable? It's the only tax-exempt fund for NY residents available? Vanguard Intermediate-Term Tax-Exempt Fund Investor Shar...
by Kevin M
Tue Sep 01, 2015 2:03 pm
Forum: Investing - Theory, News & General
Topic: Cash is king over short-term bonds
Replies: 61
Views: 5540

Re: Cash is king over short-term bonds

Not necessarily if you consider the risk of the overall portfolio, including equities. Equities + govt bonds are likely to have less risk than equities + CDs. And equity risk isn't just a rebalancing issue if you are in the withdrawal phase of the portfolio, but becomes a sequencing issue. A couple...
by Kevin M
Tue Sep 01, 2015 1:02 pm
Forum: Investing - Theory, News & General
Topic: Does anyone buy individual bonds and CDs?
Replies: 32
Views: 2661

Re: Does anyone buy individual bonds and CDs?

They are yielding over 3% which is arguably 0.50% higher than original issue CDs. The fair comparison here is to secondary CDs selling at or below par. In my quick perusal at Vanguard the other day, it looked like maybe an average premium of 10 basis points for the CDs selling at a premium compared...
by Kevin M
Tue Sep 01, 2015 12:48 pm
Forum: Investing - Help with Personal Investments
Topic: Which brokers do hassle-free Roth cnvrsn recharacterizations
Replies: 31
Views: 2533

Re: Which brokers do hassle-free Roth cnvrsn recharacterizations

Thanks for answers, livesoft. Doesn't sound like any reasons will prevent me from just opening a few Roths at Fidelity, but I think it might be a good idea to include her REIT fund as one of the converted assets, and that's at Vanguard, so maybe we'll do two or three at Fidelity and one at Vanguard....
by Kevin M
Mon Aug 31, 2015 9:51 pm
Forum: Investing - Help with Personal Investments
Topic: Which brokers do hassle-free Roth cnvrsn recharacterizations
Replies: 31
Views: 2533

Re: Which brokers do hassle-free Roth cnvrsn recharacterizations

Now that I'm also thinking of doing the multiple-conversions-and-recharacterize-all-but-the-best thing, as I posted about earlier today here, Roth conversion/recharacterization game , I have a question for you (livesoft). Why are you using multiple financial institutions instead of just opening a Ro...
by Kevin M
Mon Aug 31, 2015 9:40 pm
Forum: Investing - Theory, News & General
Topic: Does anyone buy individual bonds and CDs?
Replies: 32
Views: 2661

Re: Does anyone buy individual bonds and CDs?

I am well aware that there is a very tiny risk that the premium won't be paid, if the bank fails. It actually happened to me! I have owned brokered CDs at several banks that failed, but only one of them was purchased at a premium (the bank was in Puerto Rico). As you point out, the loss was relativ...
by Kevin M
Mon Aug 31, 2015 7:52 pm
Forum: Investing - Theory, News & General
Topic: Cash is king over short-term bonds
Replies: 61
Views: 5540

Re: Cash is king over short-term bonds

I in fact expect CDs to win over the next several years, but still consider them slightly inferior. The scenarios where CDs lose are often enough scenarios where equities are not doing well so holding CDs effectively takes on more equity risk by hedging less of their downside. If you are talking ab...
by Kevin M
Mon Aug 31, 2015 12:39 pm
Forum: Investing - Theory, News & General
Topic: Cash is king over short-term bonds
Replies: 61
Views: 5540

Re: Cash is king over short-term bonds

I wouldn't consider a 3-year CD as cash, but the general point that the retail investor can earn higher risk-adjusted yields on federally-insured deposit accounts is a good one. This is most directly observed by comparing to a Treasury security of the same maturity, since both federally-insured depo...
by Kevin M
Mon Aug 31, 2015 11:19 am
Forum: Investing - Theory, News & General
Topic: Cash is king over short-term bonds
Replies: 61
Views: 5540

Re: Cash is king over short-term bonds

Chasing the inefficiencies in the bank direct CD market is not very convenient in tax-qualified accounts, and brokered CDs aren't very liquid. Some banks won't even do direct trustee-to-trustee transfers, which is the only way I'd do it, and there ususally are transfer fees. I've done many partial ...
by Kevin M
Mon Aug 31, 2015 10:48 am
Forum: Investing - Theory, News & General
Topic: Aug 2015 correction: what Bogleheads did...
Replies: 116
Views: 6080

Re: Aug 2015 correction: what Bogleheads did...

I might have sold anyway to harvest the loss, although the trading costs on EEMS are so high that the spread might cancel out the tax benefit. I toyed with the idea of buying a few shares of EEMS with some cash in an IRA, but upon seeing the bid/ask spread and low volume, I got cold feet, and went ...
by Kevin M
Mon Aug 31, 2015 10:37 am
Forum: Investing - Theory, News & General
Topic: Does anyone buy individual bonds and CDs?
Replies: 32
Views: 2661

Re: Does anyone buy individual bonds and CDs?

Last month, I bought four brokered CDs with maturities between 7.5 years and 8.5 years. They were all non-callable. The rates I got were 3.04%, 3.05%, 3.13% and 3.14%. Best wishes. With 7-year Treasury at about 2% last month, those are nice premiums. Were they new issue or secondary market? If the ...
by Kevin M
Mon Aug 31, 2015 10:21 am
Forum: Investing - Help with Personal Investments
Topic: Roth conversion/recharacterization game or 0% cap gains tax rate
Replies: 7
Views: 580

Roth conversion/recharacterization game or 0% cap gains tax rate

EDIT: Changed post subject to reflect the additional alternative of taking long-term capital gains and paying 0% federal tax rate, which I'll discuss in a new reply. I estimate that my fiancee can do a Roth conversion of about $30K within the 15% federal tax bracket this year (before getting married...
by Kevin M
Mon Aug 31, 2015 9:47 am
Forum: Personal Finance (Not Investing)
Topic: Saving for a home down payment using Roth IRA
Replies: 5
Views: 569

Re: Saving for a home down payment using Roth IRA

Obviously it would be preferable to max out all tax-advantaged accounts without the intention of raiding them for a house down payment, and to save for the house down payment (HDP) on top of that. If you can't afford that, maxing your Roth and raiding it for the HDP seems reasonable, but of course i...
by Kevin M
Sun Aug 30, 2015 3:53 pm
Forum: Investing - Theory, News & General
Topic: Does anyone buy individual bonds and CDs?
Replies: 32
Views: 2661

Re: Does anyone buy individual bonds and CDs?

Kevin when trading bonds do you place bids below the ask price and hope someone sells to you or do you take the asking price as given? It's been awhile, but I recall doing it both ways. Do you have a particular strategy for filtering brokered CDs? LIke I said, I've been sticking with direct CDs for...
by Kevin M
Sun Aug 30, 2015 12:08 pm
Forum: Investing - Theory, News & General
Topic: Does anyone buy individual bonds and CDs?
Replies: 32
Views: 2661

Re: Does anyone buy individual bonds and CDs?

So, does anybody use this section and buy individual bonds? <snip>I am surprised nobody talks about this investment strategy more and instead everyone is just told to buy Vanguard Total Bond Market and be done. I have bought individual bonds and CDs at Vanguard and other brokers in the past, but in...
by Kevin M
Sat Aug 29, 2015 9:34 pm
Forum: Investing - Theory, News & General
Topic: Aug 2015 correction: what Bogleheads did...
Replies: 116
Views: 6080

Re: Aug 2015 correction: what Bogleheads did...

I TLH'd some emerging markets (VWO -> IEMG), which I think is the only thing I had with any losses. I did massive TLHing in 2008/2009, and since I retired in 2007, haven't been purchasing shares on a regular basis, so mostly have huge gains. I also couldn't resist using some money market cash in a c...
by Kevin M
Sat Aug 29, 2015 6:02 pm
Forum: Investing - Theory, News & General
Topic: Is tax loss harvesting always worth all the fuss?
Replies: 68
Views: 8484

Re: Is tax loss harvesting always worth all the fuss?

I think they should definitely manage their portfolios as a unit. Unless, of course, their marriage is extremely rocky . . . Even if rocky, in my state (California), the default is that everything earned or acquired during marriage (other than gifts or inheritances) is split 50/50, including tax-ad...
by Kevin M
Sat Aug 29, 2015 5:58 pm
Forum: Investing - Help with Personal Investments
Topic: If stocks dropped 30% next Monday, would you rebalance?
Replies: 103
Views: 5987

Re: If stocks dropped 30% next Monday, would you rebalance?

This is actually a fairly interesting question......if there was a huge 1987-like drop (20%) that you knew would take you way outside of your rebalancing bands, would you guesstimate fund values using their ETF cousins so that you could have orders in before the market close for the day (and get yo...
by Kevin M
Sat Aug 29, 2015 4:15 pm
Forum: Investing - Theory, News & General
Topic: Why no diversification benefit for international in this week's crash?
Replies: 90
Views: 8053

Re: Why no diversification benefit for international in this week's crash?

In the last 30 days: emerging markets are down 9% and US and Europe are only down 5% or so. I bought a little IEMG (iShares core emerging markets) with cash in a Roth IRA on Monday, and it is up 7.33% since then. So anyone who did some aggressive rebalancing into EM on Monday has benefited from int...
by Kevin M
Sat Aug 29, 2015 3:58 pm
Forum: Investing - Help with Personal Investments
Topic: VTI - "Market" order type
Replies: 29
Views: 3379

Re: VTI - "Market" order type

On the average, you'll break even in this situation. If the market rises by five cents by the time you place your marketable limit order, the bid will rise by five cents and you will accept the new bid and save five cents. If it falls by five cents, you order won't fill and you will have to lower i...
by Kevin M
Fri Aug 28, 2015 6:28 pm
Forum: Investing - Help with Personal Investments
Topic: If stocks dropped 30% next Monday, would you rebalance?
Replies: 103
Views: 5987

Re: If stocks dropped 30% next Monday, would you rebalance?

A 30% drop in stocks would trigger the lower +/-5% rebalancing band limit for most allocations, including mine: +/- 5% Rebalancing Bands . I would certainly exchange bonds into stocks, although perhaps not back to my nominal policy target, since I also want to keep enough in safe assets to approxima...
by Kevin M
Fri Aug 28, 2015 6:09 pm
Forum: Investing - Theory, News & General
Topic: Is tax loss harvesting always worth all the fuss?
Replies: 68
Views: 8484

Re: Is tax loss harvesting always worth all the fuss?

At one time I had an advisor that wanted me to have the same funds in both my account and my wife's account. He said the reason was to try to keep the returns similar between accounts so that your spouse is not complaining "their" returns are less. Funny. I just suggested to my daughter t...
by Kevin M
Fri Aug 28, 2015 2:36 am
Forum: Investing - Help with Personal Investments
Topic: Help getting off the sideline
Replies: 16
Views: 2470

Re: Help getting off the sideline

• planning to move this to Vanguard ETFs (instead of mutual funds) I like the move to Vanguard, but why ETFs? Using mutual funds is easier--no need to worry about order types, bid/ask spread, discount/premium, intra-day price movements, etc. And expense ratio for Admiral Shares is as low as ETFs. I...
by Kevin M
Fri Aug 28, 2015 2:26 am
Forum: Investing - Help with Personal Investments
Topic: Identical fund in two accounts: possible to avoid wash sale rule?
Replies: 14
Views: 1845

Re: Identical fund in two accounts: possible to avoid wash sale rule?

Based on the other conversations about any non-IRA tax-advantaged plan not being covered by the IRS wash-sale ruling, if it were me, I would avoid using the exact same funds in taxable and 401k/403b accounts when doing tax-loss harvesting if it were simple enough based on my simplicity desires, but ...
by Kevin M
Fri Aug 28, 2015 1:21 am
Forum: Investing - Theory, News & General
Topic: Long term bonds in VBTLX/VBMFX
Replies: 35
Views: 3981

Re: Long term bonds in VBTLX/VBMFX

I don't know if anyone mentioned this yet, but VB TL X is not long term bond. VB LT X is. That would be an unfortunate order entry mistake, but I guess there are worse errors to be made. The question was not about a long-term bond fund, but about the long-term bonds in the Total Bond Market Index f...
by Kevin M
Fri Aug 28, 2015 1:18 am
Forum: Investing - Theory, News & General
Topic: Why buy high dividend fund during a correction?
Replies: 15
Views: 2370

Re: Why buy high dividend fund during a correction?

I was researching this as a possible TLH partner for the Total Stock Market and the S&P 500 Index funds. My preference is to be in one of those, but if I wanted to keep on TLH'ing, I had to find somewhere else to park that large blend US equity asset class. Vanguard Large-Cap Index fund is an e...
by Kevin M
Fri Aug 28, 2015 1:04 am
Forum: Investing - Help with Personal Investments
Topic: VTI - "Market" order type
Replies: 29
Views: 3379

Re: VTI - "Market" order type

I helped a friend sell 450 shares of VTI today, and with this thread fresh in mind, was determined to use a limit order ;-) Unfortunately this was during the afternoon swoon when VTI was heading down. Every time I refreshed the quote to determine a limit price, the bid/ask had dropped further, and I...
by Kevin M
Fri Aug 28, 2015 12:49 am
Forum: Investing - Help with Personal Investments
Topic: TLH tomorrow? Please help me decide [Tax Loss Harvesting]
Replies: 22
Views: 2219

Re: TLH tomorrow? Please help me decide [Tax Loss Harvesting]

We did it today. The loss from these two funds ended up being a little over $19.1K, and we harvested losses in another account of about $1.5K (while eliminating two more ETFs in that account, which we want to eliminate--one fund left to go). Since we missed the better TLH opportunities earlier in th...
by Kevin M
Thu Aug 27, 2015 12:37 pm
Forum: Investing - Help with Personal Investments
Topic: TLH tomorrow? Please help me decide [Tax Loss Harvesting]
Replies: 22
Views: 2219

Re: TLH tomorrow? Please help me decide [Tax Loss Harvesting]

Sorry, I misread the 8/25 lots as 6/25 lots, so go ahead and exchange them, too. Thanks--just wanted to make sure I'm not misunderstanding the relative negative impact of a wash sale vs. taking the gains. Unfortunately, the market is not cooperating today, and at this point the total losses are est...
by Kevin M
Thu Aug 27, 2015 11:48 am
Forum: Investing - Theory, News & General
Topic: VHT down 27% - Glitch or missed opportunity
Replies: 59
Views: 6914

Re: VHT down 27% - Glitch or missed opportunity

I was wondering if they sent some sort of expiration warning notice. I guess I will have to pay attention as Vanguard, where I placed the order, will close It after 60 days. I think I did receive an email, but the subject was something about a trade confirmation or other lingo that I didn't associa...
by Kevin M
Thu Aug 27, 2015 11:33 am
Forum: Investing - Theory, News & General
Topic: VHT down 27% - Glitch or missed opportunity
Replies: 59
Views: 6914

Re: VHT down 27% - Glitch or missed opportunity

I use limit orders when I trade for a family member and because I missed a few expirations, I now put entries in Google Calendar to warn me when those 60 days are almost up. I also check those limit orders whenever I have to replace my furnace filter. :-) Yes! Google Calendar to the rescue. I use i...
by Kevin M
Thu Aug 27, 2015 11:28 am
Forum: Investing - Theory, News & General
Topic: Why no diversification benefit for international in this week's crash?
Replies: 90
Views: 8053

Re: Why no diversification benefit for international in this week's crash?

I care about short run results for rebalancing. If there's a flash crash in one asset I want to be able to sell my other assets to rebalance into it and restore my AA and get better returns by buying low and selling high. But when all assets fall at the same time, no rebalancing bonus can be gained...
by Kevin M
Thu Aug 27, 2015 11:14 am
Forum: Investing - Theory, News & General
Topic: Long term bonds in VBTLX/VBMFX
Replies: 35
Views: 3981

Re: Chosing Mutual Funds?

I picked out this one because the 5-year performance has it lagging nearly 80% of it's peers. I'll let Taylor answer for himself, but on just this one point, a well known feature of index funds is that they lag their actively-managed peers when the particular style or index is not doing well, but t...
by Kevin M
Thu Aug 27, 2015 11:07 am
Forum: Investing - Theory, News & General
Topic: Long term bonds in VBTLX/VBMFX
Replies: 35
Views: 3981

Re: Long term bonds in VBTLX/VBMFX

yeah I got some 1% savings account, guess it's not worth the risk to get into bonds. So wait till interest rate gets higher? how high is good to get back in it? Again, no one can tell you when it's a good time to "get back in". It's better to learn about the types of risks in various alte...
by Kevin M
Thu Aug 27, 2015 10:52 am
Forum: Investing - Help with Personal Investments
Topic: Was about to change from 100% equity to 80%. Now what?
Replies: 71
Views: 7339

Re: Was about to change from 100% equity to 80%. Now what?

Some people have as part of their investment policy (IP) not to change their IP for a certain period of time after deciding that it's a good idea. I believe poster Nisiprius's policy is to wait six months. I think something like that probably is a good idea, especially for someone who's idea of the ...
by Kevin M
Thu Aug 27, 2015 10:34 am
Forum: Investing - Theory, News & General
Topic: VHT down 27% - Glitch or missed opportunity
Replies: 59
Views: 6914

Re: VHT down 27% - Glitch or missed opportunity

Along those lines I now have open limit orders to buy IJS at 85 and VWO at 28. Maybe lightning will strike thrice. At the brokerages I use, limit orders expire after a certain amount of time, like 60 days, so be sure to re-enter your limit orders before or when they expire. My guess is that it will...
by Kevin M
Thu Aug 27, 2015 10:18 am
Forum: Investing - Help with Personal Investments
Topic: Asset location: expected earning vs. tax efficiency
Replies: 14
Views: 1340

Re: Asset location: expected earning vs. tax efficiency

Kevin M: quite interesting. The post seems to simplify for the sake of clarity. For example, spreading the capital gains tax across many years. From what I can see, things are not so simple, especially for shorter time horizons, where the exact opposite of what he says is true. This is lost in the ...
by Kevin M
Thu Aug 27, 2015 3:00 am
Forum: Investing - Help with Personal Investments
Topic: TLH tomorrow? Please help me decide [Tax Loss Harvesting]
Replies: 22
Views: 2219

Re: TLH tomorrow? Please help me decide [Tax Loss Harvesting]

Am hoping for a reply to my critique of livesoft's suggestion to sell/exchange only tax lots with losses before I make a decision tomorrow. At this point, my inclination is to exchange all shares into TLH partners tomorrow, and if there are additional significant declines before year end, exchange t...

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