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Re: How to calculate how well you're doing?

Maybe I'm doing something wrong. I created this test sheet. 7% per year, compounded monthly, $4000 added per month. Date Added Balance 01/01/2013 -$4,000.00 $4,000.00 02/01/2013 -$4,000.00 $8,023.33 03/01/2013 -$4,000.00 $12,070.14 04/01/2013 -$4,000.00 $16,140.55 05/01/2013 -$4,000.00 $20,234.70 0...
by Strevlac
Thu Oct 23, 2014 3:58 pm
 
Forum: Investing - Theory, News & General
Topic: How to calculate how well you're doing?
Replies: 9
Views: 1282

Re: XIRR function and private equity invtments

... comes in the mail as a dividend check. How do I count for this in XIRR?? If I count it as a withdrawal it would not take into account the 8% return on the initial amount I put into the private equity deal. I don't see the problem. Treating the dividend as a withdrawal leads XIRR to compute the ...
by Strevlac
Wed Oct 22, 2014 8:03 pm
 
Forum: Investing - Theory, News & General
Topic: XIRR function and private equity investments
Replies: 14
Views: 776

Re: XIRR function and private equity invtments

Need help from XIRR experts here. I have created a spreadsheet and want to use XIRR to track my personal rate of returns. Planning on starting tracking in January 2015. I have 20% position in the portfolio in a private equity vehicle that delivers 8% dividend per year roughly. This comes in the mai...
by Strevlac
Wed Oct 22, 2014 5:03 pm
 
Forum: Investing - Theory, News & General
Topic: XIRR function and private equity investments
Replies: 14
Views: 776

Re: Why include International Index in AA?

I've never been able to wrap my head around these kinds of arguments. So what if US companies do lots of business overseas? How is that an argument in favor of not investing in foreign companies? I don't invest in countries, I invest in companies. Samsung has been mentioned. Any reason you wouldn't ...
by Strevlac
Wed Oct 22, 2014 3:47 pm
 
Forum: Investing - Theory, News & General
Topic: Why include International Index in AA?
Replies: 39
Views: 2769

Re: Losing money, please advise

I don't find enough time to understand the market, nor am I knowledgeable on that front. So, I would really appreciate your advice. 2 months ago, I invested around 130k in Vanguard Life Strategy Moderate Growth Fund and rolled over $110k my 401K into Vanguard Target Retirement 2030 fund. I am sad t...
by Strevlac
Sun Oct 12, 2014 11:59 am
 
Forum: Investing - Help with Personal Investments
Topic: Losing money, please advise
Replies: 36
Views: 5031

Re: Roth IRA Funds

I currently have about $27k in a ROTH IRA with Fidelity in FFFHX (Fid Freedom Fund 2050). The expense ratio for this fund is 0.78% so I would like to move this money to an index fund with an expense ratio of less than 0.1%. I am 31. Can I simply trade these shares/money to Fidelity's Spartan fund w...
by Strevlac
Fri Oct 10, 2014 12:35 pm
 
Forum: Investing - Help with Personal Investments
Topic: Roth IRA Funds
Replies: 7
Views: 479

Re: How to add to my portfolio monthly without crazy fees

I know its been a while since the last post on this thread, but i wanted to ask about the switching to vanguard suggestions. In this thread most people seem to suggest going to vanguard, yet if you google vanguard vs td ameritrade, it seems split down the middle. I see people saying TD's commission...
by Strevlac
Fri Oct 10, 2014 11:52 am
 
Forum: Investing - Help with Personal Investments
Topic: How to add to my portfolio monthly without crazy fees
Replies: 39
Views: 3088

Re: Looking for the best video for the uninformed investor.

I don't understand. Those videos are perfect for anyone who is "not savvy in the investment business (And that have been taken advantage of)." You aren't going to find anything more to-the-point or easier to understand. Those videos are as simple as they can be. Trying to make them any sim...
by Strevlac
Thu Oct 09, 2014 9:42 pm
 
Forum: Investing - Theory, News & General
Topic: Looking for the best video for the uninformed investor.
Replies: 10
Views: 401

Re: Investing in Europe

I have about 13% of my portfolio in international stocks (mostly European), but I don't like it. I truly believe that the U.S. market is the best place to be now and in the long-run and lower valuations overseas don't feel like bargains to me... but I don't know that for certain. So I hold my nose, ...
by Strevlac
Thu Sep 25, 2014 11:06 am
 
Forum: Investing - Theory, News & General
Topic: Investing in Europe
Replies: 4
Views: 440

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. How would that have saved the 40,000 to 8,000 over 20 years Japanese investor? The...
by Strevlac
Mon Sep 15, 2014 2:16 pm
 
Forum: Investing - Theory, News & General
Topic: The dangerous practice of rebalancing...
Replies: 191
Views: 14458

Re: The dangerous practice of rebalancing...

How many times did the market tank 50% in a day? People on this forum used that example too frequently, IMO. The problem in this rebalancing issue is if the market tanks,5% tomorrow, another 5% after tomorrow, and another 5% after that, and you do not know that sequence in advance. Then how about d...
by Strevlac
Sun Sep 14, 2014 1:25 pm
 
Forum: Investing - Theory, News & General
Topic: The dangerous practice of rebalancing...
Replies: 191
Views: 14458

Re: The dangerous practice of rebalancing...

Wow, this thread is confusing. Not sure why the concept of rebalancing needs to be put under such a microscope as it isn't that complex. To me, rebalancing is done to maintain an asset allocation. That asset allocation is determined based on my need, ability, and willingness to take risk. Thus, that...
by Strevlac
Sun Sep 14, 2014 10:57 am
 
Forum: Investing - Theory, News & General
Topic: The dangerous practice of rebalancing...
Replies: 191
Views: 14458

Re: What are you up YTD?

I wonder how many people are just posting their XIRR which is an annualized calculation. Some of the returns posted here, even for conservative portfolios have me scratching my head. Unless I missed it, I have the lowest return of anyone who has posted their return. 50% US 15% Intl 20% Bond 15% Cash...
by Strevlac
Sat Aug 30, 2014 10:15 am
 
Forum: Investing - Help with Personal Investments
Topic: What are you up YTD?
Replies: 141
Views: 11825

Re: Bad(?) advice given about Target Date Retirement funds

The glide path is the entire point of target date funds. How is it bad advice to pick a target date fund based on a comfortable asset allocation right now at this point in your investing life? It's not like an 80%/20% allocation is going to 70%/30% next week.
by Strevlac
Mon Aug 18, 2014 12:14 pm
 
Forum: Investing - Theory, News & General
Topic: Bad(?) advice given about Target Date Retirement funds
Replies: 103
Views: 6636

Re: Vanguard sued for charging too little

I don't understand this at all. I am not a tax expert, but I always thought corporations paid taxes based on consolidated financials. Intercompany transactions for 100% owned subsidiaries such as these are always eliminated in the consolidation process. What am I missing?
by Strevlac
Sun Jul 27, 2014 1:26 pm
 
Forum: Personal Finance (Not Investing)
Topic: Vanguard sued for charging too little
Replies: 187
Views: 22179

Re: How are you doing through the first half of 2014?

Is there a mathematical way to 'un-annualize' XIRR? I use Quicken and their performance reports show only XIRR. If ra is the annual rate of return and rd is the daily rate of return, then rd = (1+ra)^(1/251) - 1 (most years have 251 trading days, 2014 happens to have 252). Then for a period with n ...
by Strevlac
Fri Jul 04, 2014 11:26 am
 
Forum: Investing - Theory, News & General
Topic: How are you doing through the first half of 2014?
Replies: 91
Views: 10073

Re: I've Got $100K -- Where To Start?

If I recall correctly, cap gains and qualified dividends are 0% those in the 15% tax bracket. I dunno if that applies to you but I thought I'd mention it, especially since you said you are maxing out your 401K. A single person making $100,000 a year would be in the 15% bracket if they only took the ...
by Strevlac
Tue Jun 10, 2014 11:06 pm
 
Forum: Investing - Help with Personal Investments
Topic: I've Got $100K -- Where To Start?
Replies: 39
Views: 4471

Re: 2014 Portfolio Review

I'm not sure why tax consequences would be a reason to not use Ibonds, regardless of someone's marginal tax rate. If I am missing something please let me know, but the way I see it one has a choice for risk-free investing outside of tax advantaged retirement accounts, and each choice provides a nomi...
by Strevlac
Sun Jun 01, 2014 1:56 pm
 
Forum: Investing - Help with Personal Investments
Topic: 2014 Portfolio Review
Replies: 28
Views: 1551

Re: Noob Mortgage Question - Looking for advice!

What's wrong with a 10 year mortgage? With your combined income that's what I would be looking at.
by Strevlac
Wed May 21, 2014 5:28 pm
 
Forum: Personal Finance (Not Investing)
Topic: Noob Mortgage Question - Looking for advice!
Replies: 5
Views: 583

Re: newbie starting with Vanguard Star?

Keep in mind that contributions can be withdrawn from a Roth IRA penalty and tax free, so that's a good choice if you're unsure whether or not you'll really need to spend the money before retirement. Kevin I do not believe this to be true. http://www.marketwatch.com/story/taxes-on-roth-ira-withdraw...
by Strevlac
Thu May 08, 2014 5:29 pm
 
Forum: Investing - Help with Personal Investments
Topic: newbie starting with Vanguard Star?
Replies: 29
Views: 2440

Re: Help for a new invester

Ignoring state taxes which I'm not as clear on: Think of it this way. Say you're in the 25% federal income tax bracket. This means that you make enough money that some of your income is taxed at $0 (because of deductions and exemptions), some is taxed at 10%, some at 15%, and the remaining amount at...
by Strevlac
Sun Apr 20, 2014 11:31 am
 
Forum: Investing - Help with Personal Investments
Topic: Help for a new invester
Replies: 10
Views: 909

Re: Help for a new invester

Remember that even with a traditional 401K some of the money drawn in retirement is tax-free (assuming you have no other earned income) due to standard deduction and exemption. Tax laws do change but I still think it's a really good bet to save a good bit in a tax-deferred vehicle. You are giving aw...
by Strevlac
Sat Apr 19, 2014 2:28 pm
 
Forum: Investing - Help with Personal Investments
Topic: Help for a new invester
Replies: 10
Views: 909

Re: Which Bond Fund in this Rising Interest Rates environmen

I thought there was no risk of loss in a bond fund as long you do not sell the fund prior to the length of its duration. (assuming reinvestment of dividends) OK, you have got to be kidding me. I have read just about every bond fund thread on this board for the past 6 months and seen many back and f...
by Strevlac
Fri Dec 06, 2013 7:51 pm
 
Forum: Investing - Help with Personal Investments
Topic: Which Bond Fund in this Rising Interest Rates environment?
Replies: 44
Views: 4393

Re: Question About Capital Gain Distributions In Taxable Acc

http://www.irs.gov/Help-&-Resources/Tools-&-FAQs/FAQs-for-Individuals/Frequently-Asked-Tax-Questions-&-Answers/Capital-Gains,-Losses,-Sale-of-Home/Mutual-Funds-(Costs,-Distributions,-etc.)/Mutual-Funds-(Costs,-Distributions,-etc.)-4 "Capital gains distributions are taxed as long-te...
by Strevlac
Sun Dec 01, 2013 1:20 pm
 
Forum: Investing - Help with Personal Investments
Topic: Question About Capital Gain Distributions In Taxable Account
Replies: 3
Views: 353

Question About Capital Gain Distributions In Taxable Account

How exactly does the taxation of these distributions work? I am assuming that short term vs long term cap gains on securities held by the fund itself will be spelled out on the 1099? If that's the case (again, not sure), then how does that relate to how long one has actually held the fund shares? I....
by Strevlac
Sun Dec 01, 2013 12:37 pm
 
Forum: Investing - Help with Personal Investments
Topic: Question About Capital Gain Distributions In Taxable Account
Replies: 3
Views: 353

Re: Confused about margin

Assuming I have $100 invested in marginable securities and I borrow $25 on margin and add to my $100 position, I'm now long $125. If the market falls 75% I will be left with $31.25 which is well above the $25 I borrowed so it won't trigger a margin call. I do understand that out of the $31.25 $25 b...
by Strevlac
Wed Nov 27, 2013 7:35 pm
 
Forum: Investing - Help with Personal Investments
Topic: Confused about margin
Replies: 23
Views: 1665

Re: Confused about margin

I don't see how this is a bad thing to do. Basically, if investing in the market is the best way to invest your money, if you are able to invest it using money borrowed at 1.33%, with sufficient buffer to avoid a margin call, it seems like the smart thing to do. No? Sure, it's very smart. Except wh...
by Strevlac
Wed Nov 27, 2013 4:25 pm
 
Forum: Investing - Help with Personal Investments
Topic: Confused about margin
Replies: 23
Views: 1665

Re: Confused about margin

These threads are popping up more and more.

Hmmm.
by Strevlac
Wed Nov 27, 2013 1:56 pm
 
Forum: Investing - Help with Personal Investments
Topic: Confused about margin
Replies: 23
Views: 1665

Re: 3rd yr Boglehead Anniversary - Annual Checkup - 27 yr ol

Gross 70,000.00 401K (17,500.00) Est Health Prem (5,000.00) HSA Account (1,000.00) AGI 46,500.00 Standard Deduction (3,800.00) Exemption (5,950.00) Taxable Income 36,750.00 Up to $17,850 1,785.00 $17,851 - $72,500 2,835.00 Total Tax 4,620.00 Gross 70,000.00 SS Tax Rate 6.20% Medicare Tax Rate 1.45% ...
by Strevlac
Fri Nov 22, 2013 9:38 pm
 
Forum: Investing - Help with Personal Investments
Topic: 3rd yr Boglehead Anniversary - Annual Checkup - 27 yr old.
Replies: 21
Views: 1698

Re: 3rd yr Boglehead Anniversary - Annual Checkup - 27 yr ol

You're doing an incredible job. You've gone from $150K 2 years ago, to ~$210,000 last year to ~$315K this year. How does one do this on $70k a year? Good question. Returns over 2 years average around 20% a year, so that accounts for a majority of the results, but not completely without basically in...
by Strevlac
Fri Nov 22, 2013 9:05 pm
 
Forum: Investing - Help with Personal Investments
Topic: 3rd yr Boglehead Anniversary - Annual Checkup - 27 yr old.
Replies: 21
Views: 1698

Re: 3rd yr Boglehead Anniversary - Annual Checkup - 27 yr ol

hoppy08520 wrote:You're doing an incredible job. You've gone from $150K 2 years ago, to ~$210,000 last year to ~$315K this year.


How does one do this on $70k a year?
by Strevlac
Fri Nov 22, 2013 5:13 pm
 
Forum: Investing - Help with Personal Investments
Topic: 3rd yr Boglehead Anniversary - Annual Checkup - 27 yr old.
Replies: 21
Views: 1698

Re: ETFs vs. Mutual Funds for Young Investor

Long-term capital gains and dividends are taxed at 0% for those in the 15% tax bracket, correct? If the OP is in that bracket or if he could up his 401K contribution and/or itemize deductions until he gets there, then taxes shouldn't be an issue for equity holdings. Unless the tax law changes, of co...
by Strevlac
Wed Nov 13, 2013 9:11 pm
 
Forum: Investing - Help with Personal Investments
Topic: ETFs vs. Mutual Funds for Young Investor
Replies: 6
Views: 904

Re: index funds in taxable accounts

It depends on what kind of fund and what tax bracket you are in. Qualified dividends (which include dividends for stock funds) and long-term capital gains are taxed at a lower rate. Currently these are taxed at 0% for those in the 15% tax bracket. Bond fund dividends are nonqualified and therefore a...
by Strevlac
Sat Oct 19, 2013 7:46 pm
 
Forum: Investing - Theory, News & General
Topic: index funds in taxable accounts
Replies: 3
Views: 605

Re: POLL: What is your rate of return YTD?

12.44% as of market close 10/17/13.

Asset Allocation:
50% US Stocks
14% International Stocks
20% Bonds
16% Cash
by Strevlac
Thu Oct 17, 2013 6:57 pm
 
Forum: Investing - Help with Personal Investments
Topic: POLL: What is your rate of return YTD?
Replies: 89
Views: 6376

Re: Home Affordability

Maybe I missed it but....health insurance premiums?
by Strevlac
Thu Oct 17, 2013 2:44 pm
 
Forum: Personal Finance (Not Investing)
Topic: Home Affordability [check my calculations]
Replies: 85
Views: 5713

Re: Now stocks feel expensive

I bought my first shares of the Total Stock Market Index (VTI) in November 2012 for $71.72/unit. I remember at the time that it felt "expensive", and there were many posts about the stock market being at an "all time high", etc. It's hard to believe that the same shares are wort...
by Strevlac
Thu Oct 17, 2013 1:07 pm
 
Forum: Investing - Help with Personal Investments
Topic: Now stocks feel expensive
Replies: 13
Views: 1552

Re: Jack Bogle says rebalancing is overhyped?!

Let me ask a hypothetical question: Is having $500K in stocks the same risk as having $250K in stocks? Actually, that's a loaded question. Most people would probably say that $500K in stocks is riskier than $250K, because you stand to lose a lot more dollars if stocks really head south. In 2008, fo...
by Strevlac
Wed Oct 16, 2013 9:05 pm
 
Forum: Investing - Theory, News & General
Topic: Jack Bogle says rebalancing is overhyped?!
Replies: 83
Views: 9249

Re: Talk me down

Wouldn't extremely low P/B ratios indicate lots of capital with poor prospects of creating future earnings? Companies can burn through a mountain of cash very fast....management makes out like bandits and owners are left holding the bag.

OTOH you seem to have done OK with your picks.
by Strevlac
Wed Oct 16, 2013 5:48 pm
 
Forum: Investing - Help with Personal Investments
Topic: Talk me down
Replies: 77
Views: 5901

Re: Any Dangerous Boglehead Group-Think?

William Million wrote:. . . . because so many posters here now have more in PE10 than any rational index investor, such as John Bogle.


What does this even mean?
by Strevlac
Wed Oct 16, 2013 4:22 pm
 
Forum: Investing - Help with Personal Investments
Topic: Any Dangerous Boglehead Group-Think?
Replies: 73
Views: 4601

Re: Jack Bogle says rebalancing is overhyped?!

I never thought of rebalancing as anything other than maintaining a risk profile. If I decide on day one that I am comfortable with 50/50 or some kind of glide path or whatever, then in the absence of some fundamental change in my need/ability/willingness to take risk, then that is what I should sti...
by Strevlac
Wed Oct 16, 2013 3:34 pm
 
Forum: Investing - Theory, News & General
Topic: Jack Bogle says rebalancing is overhyped?!
Replies: 83
Views: 9249

Re: Help with Market Timing (Forced)

How about ETFs?
by Strevlac
Wed Oct 02, 2013 9:34 am
 
Forum: Investing - Help with Personal Investments
Topic: Help with Market Timing (Forced)
Replies: 9
Views: 1160

Re: Indexing and Past Performance

It's not based on past performance. It's based on the math of the market. Beating the market is a zero-sum game. Money managers charge a fee to take investors money and try to beat the market. Since each money manager is competing with all of the other money managers and individual investors, who c...
by Strevlac
Sun Sep 15, 2013 2:19 pm
 
Forum: Investing - Theory, News & General
Topic: Indexing and Past Performance
Replies: 15
Views: 866

Re: Indexing and Past Performance

It's not based on past performance. It's based on the math of the market. Beating the market is a zero-sum game. Money managers charge a fee to take investors money and try to beat the market. Since each money manager is competing with all of the other money managers and individual investors, who co...
by Strevlac
Sun Sep 15, 2013 10:58 am
 
Forum: Investing - Theory, News & General
Topic: Indexing and Past Performance
Replies: 15
Views: 866

Re: Dividend, growth investment strategy

1. The growth-of-$10K chart is irrelevant for DG strategy because it shows the portfolio balance, when the important thing for DG investor is the income. If you never sell a share, then the price fluctuations and your portfolio balance doesn't matter. Total return = price change + income. If price ...
by Strevlac
Thu Sep 12, 2013 9:00 pm
 
Forum: Investing - Help with Personal Investments
Topic: Dividend, growth investment strategy
Replies: 97
Views: 7950

Re: These funds have beaten the Vgd Idxs over 10 yrs

This is all very basic stuff. Jack Bogle laid it out in his senior thesis at Princeton more than 60 years ago. He has repeated that simple analysis in every one of his published books since then. It is very simple math. Really. I'm surprised that various posters with hundreds/thousands of posts hav...
by Strevlac
Tue Sep 10, 2013 7:46 pm
 
Forum: Investing - Theory, News & General
Topic: These funds have beaten the Vgd Idxs over 10 yrs
Replies: 64
Views: 5390

Re: Dividend, growth investment strategy

1. The growth-of-$10K chart is irrelevant for DG strategy because it shows the portfolio balance, when the important thing for DG investor is the income. If you never sell a share, then the price fluctuations and your portfolio balance doesn't matter. Total return = price change + income. If price ...
by Strevlac
Tue Sep 10, 2013 11:25 am
 
Forum: Investing - Help with Personal Investments
Topic: Dividend, growth investment strategy
Replies: 97
Views: 7950

Re: Where to invest money

Ibonds?
by Strevlac
Mon Sep 09, 2013 11:39 am
 
Forum: Investing - Help with Personal Investments
Topic: Where to invest money
Replies: 11
Views: 1229

Re: I just don't get this rise in interest rates

This is kind of ugly (I couldn't get everything to line up properly) but hopefully it makes sense. Scenario two, rates rise 1% in year five, incur a $50 "loss" to buy a new bond. Result = same ending balance as scenario 1. Scenario 1 - Hold Until Maturity 2.00% Year Principal Interest Bala...
by Strevlac
Sat Sep 07, 2013 9:35 pm
 
Forum: Investing - Theory, News & General
Topic: I just don't get this rise in interest rates
Replies: 104
Views: 7376

Re: I just don't get this rise in interest rates

and in the example above selling at $950 and rebuying at $1000, you'd have a real loss, even if you bought another bond at a higher yield. And if the new bond you bought drops in value and you repeat your sale and purchase at a loss you'd be compounding your loss. If you sell a stock mutual fund af...
by Strevlac
Sat Sep 07, 2013 8:02 pm
 
Forum: Investing - Theory, News & General
Topic: I just don't get this rise in interest rates
Replies: 104
Views: 7376

Re: I just don't get this rise in interest rates

Bonds mature, Bond Funds do not. Where can we find the % of bonds in TBM held to maturity? +100% turnover rate doesn't indicate that the fund holds all bonds to maturity. I would argue that such as statistic is meaningless for a bond fund. The Vanguard Total Bond Market fund buys and sells bonds ei...
by Strevlac
Sat Sep 07, 2013 9:54 am
 
Forum: Investing - Theory, News & General
Topic: I just don't get this rise in interest rates
Replies: 104
Views: 7376
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