Search found 6248 matches

by Wagnerjb
Tue Jul 28, 2015 10:38 am
Forum: Investing - Theory, News & General
Topic: Anyone Have a Near Retirement Strategy for Sequence of Return Risk?
Replies: 45
Views: 2358

Re: Anyone Have a Near Retirement Strategy for Sequence of Return Risk?

I just retired a few months ago. My current target allocation is around 30-35% equities, and I am comfortably within this range today. When I was young my target allocation was 80-85% stocks. I just took a look back at old spreadsheets that I keep to see how my glide path evolved. Fifteen years ago ...
by Wagnerjb
Sun Jul 26, 2015 9:16 pm
Forum: Personal Finance (Not Investing)
Topic: Salary Question [Renegotiating from USD to AUD]
Replies: 7
Views: 711

Re: Salary Question [Renegotiating from USD to AUD]

The issue is that your AUD expenses have not increased as the exchange rate has moved. You have no changes in food, auto, housing, medical, etc since they are all in AUD. Even your US income taxes aren't higher since you pay taxes based on the converted amount in US$, right? So, your challenge is to...
by Wagnerjb
Sun Jul 26, 2015 5:11 pm
Forum: Investing - Help with Personal Investments
Topic: Stock & Corporate Bond Portfolio
Replies: 3
Views: 407

Re: Stock & Corporate Bond Portfolio

You should have some international equities in your portfolio. You can get the improved diversification without sacrificing the simplicity that you desire.

Best wishes.
by Wagnerjb
Tue Jul 21, 2015 9:51 pm
Forum: Investing - Help with Personal Investments
Topic: This Is Why You Don't Buy Individual Stock
Replies: 11
Views: 2641

Re: This Is Why You Don't Buy Individual Stock

And yet the person who started this company on its downward spiral is still getting his golden parachute while individual stock owners are punished. http://www.huffingtonpost.com/2013/04/21/aubrey-mcclendon-company-jet_n_3119385.html You are talking about the founder of the company, the guy who cre...
by Wagnerjb
Tue Jul 21, 2015 8:18 pm
Forum: Investing - Help with Personal Investments
Topic: This Is Why You Don't Buy Individual Stock
Replies: 11
Views: 2641

Re: This Is Why You Don't Buy Individual Stock

I think what you mean to emphasize is that one needs to be diversified.

It has nothing to do with specific stocks, as your mutual funds all own specific stocks....hopefully a diversified portfolio of them.

Best wishes.
by Wagnerjb
Tue Jul 21, 2015 1:13 pm
Forum: Personal Finance (Not Investing)
Topic: How do people afford children with a SAHS?
Replies: 183
Views: 10532

Re: How do people afford children with a SAHS?

What I am really considering is what the others have said, taking the $20k cash to apply towards my mortgage and re-fi to lower my monthly payments and get rid of PMI... only downside is that it would increase my property taxes presumably? I don't understand why refinancing would increase your prop...
by Wagnerjb
Tue Jul 21, 2015 9:48 am
Forum: Personal Finance (Not Investing)
Topic: How do people afford children with a SAHS?
Replies: 183
Views: 10532

Re: How do people afford children with a SAHS?

Your house and mortgage is the elephant in the room, but you have made it clear that you are not interested in downsizing to a house that fits your budget a little more comfortably. (When I was earning $80k and my wife $45k, we had a $180,000 house in a booming area of Texas). Then how about working...
by Wagnerjb
Tue Jul 21, 2015 9:27 am
Forum: Investing - Theory, News & General
Topic: Paul Merriman Small Cap Value "Free Lunch"
Replies: 47
Views: 4020

Re: Paul Merriman Small Cap Value "Free Lunch"

. 1929-1932: Real Annualized Returns - at a time when unemployment also increased substantially -33.5% = 75% S&P500 : 25% 5 yr T-Notes -62.6% = 75% Dimensional US Small Value : 25% 5 yr T-Notes Free until you pay ... Robert . Robert: where did you get Dimensional US Small Value returns in 1929?...
by Wagnerjb
Sat Jul 18, 2015 11:54 am
Forum: Personal Consumer Issues
Topic: Second credit card fraud this year
Replies: 14
Views: 1147

Re: Second credit card fraud this year

obgraham wrote:This stuff happens. A good CC company will look out for you and cover your loss.

Have more than one card, use them as needed, and get on with your life.


That is my philosophy exactly.
by Wagnerjb
Mon Jul 13, 2015 5:53 pm
Forum: Personal Finance (Not Investing)
Topic: AMT, Inherited tIRA, and "sweet spot"
Replies: 7
Views: 712

Re: AMT, Inherited tIRA, and "sweet spot"

Maybe I misunderstand what you are doing but by not paying AMT, aren't you just paying more in taxes? Not in certain circumstances. Another way to view being in AMT is that you get no (or a reduced) benefit from your property tax deductions. So, the OP has a "normal" year and pays some AM...
by Wagnerjb
Mon Jul 13, 2015 10:50 am
Forum: Personal Finance (Not Investing)
Topic: AMT, Inherited tIRA, and "sweet spot"
Replies: 7
Views: 712

Re: AMT, Inherited tIRA, and "sweet spot"

In your situation I would look at the size and length of your RMDs. For example, if you are 30 years old and expect to have $40,000 in annual RMDs for another 30 consecutive years....then I would be inclined to look hard at a solution such as your "big bang". But if you are 55 and expect t...
by Wagnerjb
Sun Jul 12, 2015 9:41 am
Forum: Investing - Theory, News & General
Topic: DFA Matrix Book 2015 - interesting country returns
Replies: 10
Views: 1287

Re: DFA Matrix Book 2015 - interesting country returns

Russia: 1995-2014 Annualized return = 9.4% Standard deviation = 79.5 1998 = -83.0% 2008 = -73.8% 2014 = -45.9% Some say Russian stocks are currently 'cheap' - but perhaps 'cheap' for a reason - higher risk. I remember vividly back at the old Morningstar forum, around 2004 the performance chasers we...
by Wagnerjb
Wed Jul 08, 2015 2:48 pm
Forum: Investing - Theory, News & General
Topic: Bloomberg - "The Hugely Profitable, Wholly Legal Way to Game the Stock Market" (Front running index fund purchases)
Replies: 43
Views: 4451

Re: Bloomberg Article: The Hugely Profitable, Wholly Legal Way to Game the Stock Market

Gus Sauter of Vanguard has acknowledged that the S&P500 index probably suffers from 25 bps of front running Does this suggest an offsetting benefit to the Extended Market Index? If so, since the market cap of the S&P 500 is 4 times the market cap of the Extended Market Index, does that mean...
by Wagnerjb
Wed Jul 08, 2015 8:16 am
Forum: Investing - Theory, News & General
Topic: Bloomberg - "The Hugely Profitable, Wholly Legal Way to Game the Stock Market" (Front running index fund purchases)
Replies: 43
Views: 4451

Re: Bloomberg Article: The Hugely Profitable, Wholly Legal Way to Game the Stock Market

Oh, yea, BTW, there is a subtle message in the article, that active management does not suffer from this issue. That is flat out wrong. The reason is that active managed funds generally trade (not at rebalances) a lot more than index funds, and as they trade, they have market impact, slippage, and ...
by Wagnerjb
Tue Jul 07, 2015 1:34 pm
Forum: Investing - Theory, News & General
Topic: People who know better than you
Replies: 3
Views: 756

Re: People who know better than you

I guess the next push will be into annuities. I see that as a very big step forward. Less skilled investors seem to love the security blanket of a traditional pension, but those without a pension are reluctant to buy a simple low-cost immediate annuity. By giving employees the opportunity to turn t...
by Wagnerjb
Wed Jul 01, 2015 4:00 pm
Forum: Personal Finance (Not Investing)
Topic: retirement planning decisions
Replies: 4
Views: 912

Re: retirement planning decisions

It is clear that you have identified and addressed all of the moving parts to this equation, and there is no "right" answer to your decisions. Let me offer my perspective on the 5-year vs. 10-year payout decision. Like you, I was in the 39.6% tax bracket in my working years (I retired this...
by Wagnerjb
Sun Jun 28, 2015 9:38 am
Forum: Personal Finance (Not Investing)
Topic: retirement planning decisions
Replies: 4
Views: 912

Re: retirement planning decisions

Your thoughts on the Deferred Comp plan are logical, and you need to decide how much risk you are willing to accept. In my case, I managed that risk several ways: a) I delayed contributing for a few years after I became an executive (at age 42). This shortened the time period at risk. b) I set the p...
by Wagnerjb
Sat Jun 20, 2015 7:46 am
Forum: Investing - Help with Personal Investments
Topic: Tax loss harvesting/ Wash sale rule
Replies: 4
Views: 757

Re: Tax loss harvesting/ Wash sale rule

Unless you are in the very lowest tax brackets, tax loss harvesting provides very valuable benefits. You get both tax deferral (paying taxes later) as well as tax arbitrage (paying taxes at a lower rate). The most rational strategy is to capture tax losses quickly, as they can disappear with a stron...
by Wagnerjb
Fri Jun 19, 2015 10:29 am
Forum: Investing - Help with Personal Investments
Topic: Tax loss harvesting/ Wash sale rule
Replies: 4
Views: 757

Re: Tax loss harvesting/ Wash sale rule

I own individual stocks (as well as mutual funds), and have been tax loss harvesting since around 1988. Your plan sounds alright, but I see two issues to point out: 1) Buying an additional 100 shares 31 days before you sell the old lot is just as much a distortion of your portfolio as simply harvest...
by Wagnerjb
Tue Jun 16, 2015 7:45 pm
Forum: Personal Finance (Not Investing)
Topic: Need help finding a CPA knowledgable about expat issues.
Replies: 6
Views: 889

Re: Need help finding a CPA knowledgable about expat issues.

DH's company used KPMG based out of Ft. Lauderdale, FL. They are expensive but it's their specialty. I was an expat in both Asia and then in Europe for 7 years. My company paid KPMG to do my US personal tax returns and they did a decent job. I can vouch for their experience in this area, but they d...
by Wagnerjb
Tue Jun 02, 2015 1:04 pm
Forum: Investing - Theory, News & General
Topic: Dividend yield is a lot less important than buyback yield
Replies: 192
Views: 9858

Re: Dividend yield is a lot less important than buyback yield

Management salary and bonus payments (due to stock options) tends to be maximized by increasing share price. Doesn't the wealth of all shareholders (like you and me) tend to get maximized by increasing the share price? I have no problem with any legal and ethical means to increase the share price. ...
by Wagnerjb
Thu May 28, 2015 8:29 am
Forum: Investing - Theory, News & General
Topic: WSJ: Trading has shifted to the end of the day
Replies: 4
Views: 1022

Re: WSJ: Trading has shifted to the end of the day

apparently, from the article, index funds trade heavily in the last hour or so of trading. who knows if/when this will change, now that the "secret" is out...ha ha. have a great day. don In the commodity markets they have a transaction (to buy or sell) called "trade at settle". ...
by Wagnerjb
Mon May 18, 2015 2:27 pm
Forum: Investing - Help with Personal Investments
Topic: Charitable Contribution - Appreciated Shares
Replies: 15
Views: 625

Re: Charitable Contribution - Appreciated Shares

cheese_breath wrote:What's the matter with an Excel spreadsheet? Unless you want something else you haven't told us you should be able to develop one tracking purchases, basis and donations in 15 minutes or less.


I agree completely.
by Wagnerjb
Mon May 18, 2015 12:26 pm
Forum: Investing - Help with Personal Investments
Topic: Charitable Contribution - Appreciated Shares
Replies: 15
Views: 625

Re: Charitable Contribution - Appreciated Shares

Personally, I would try to donate those shares with the most appreciation. That gives you the most tax efficiency, since you get the same deduction no matter how much the appreciation.

Best wishes.
by Wagnerjb
Mon May 18, 2015 9:30 am
Forum: Investing - Help with Personal Investments
Topic: Best 401K option in terrible plan
Replies: 8
Views: 715

Re: Best 401K option in terrible plan

Hi Maximo, and welcome to the Boglehead forum. Since there is no company match, I would recommend that you not participate in the 401k plan at all. The fees are simply too high and there isn't even a single low cost fund. The company uses those high fees to offset the cost of administration of the 4...
by Wagnerjb
Wed May 13, 2015 12:13 pm
Forum: Personal Finance (Not Investing)
Topic: Reduce mortgage or invest cash?
Replies: 4
Views: 477

Re: Reduce mortgage or invest cash?

Would it be better to pay cash to decrease a 30 yr loan amount to below jumbo limit and refinance at a lower rate for 15 yr or invest the cash? I currently owe 650k at 4.38% for 27 more years. I am contemplating paying about 230k to bring it below the 417k limit for conforming loans, then refinance...
by Wagnerjb
Mon May 11, 2015 9:06 pm
Forum: Investing - Theory, News & General
Topic: "Why Would an Experienced Investor Buy a Target-Date Fund?"
Replies: 38
Views: 5254

Re: "Why Would an Experienced Investor Buy a Target-Date Fund?"

Mike has written an excellent article, highlighting that the Target Funds are quite sophisticated tools, used by many investors. They are ideally suited to investors who prefer (or need) simplicity. As Mike says, they are well suited for those who: a) want time savings b) are math-averse c) have a s...
by Wagnerjb
Sun May 10, 2015 8:37 am
Forum: Investing - Theory, News & General
Topic: 6 ways Vanguard has changed the way people invest
Replies: 2
Views: 1119

Re: 6 ways Vanguard has changed the way people invest

Those 6 characteristics are admirable and have been well supported by Jack Bogle and Vanguard. But they were certainly well known and practiced by disciplined investors before Vanguard came along. What Vanguard did was offer simplicity that allowed small investors to diversify broadly with low costs...
by Wagnerjb
Wed May 06, 2015 9:30 am
Forum: Investing - Theory, News & General
Topic: madsinger monthly report (April 2015)
Replies: 6
Views: 999

Re: madsinger monthly report (April 2015)

I don't know if this is noteworthy (but I guess I'll note it), the "Hot Hand" fund "portfolio" has dropped out of first place among the "all stock" portfolios (as ranked by 10 year 4 month returns) for, what I think is the first time since I've been tracking this. Hi B...
by Wagnerjb
Wed May 06, 2015 9:05 am
Forum: Investing - Help with Personal Investments
Topic: Budget allocation between LARGE student loan burden and Retirement_Updated details
Replies: 33
Views: 3381

Re: Budget allocation between LARGE student loan burden and Retirement

Your financial planner has a conflict of interest in providing this advice - the more you pay down the loan, the less money you invest with them and the lower their fees. Cherijoh has nailed the problem. You are getting conflicting advice because your financial advisor is (very likely) being "...
by Wagnerjb
Mon Apr 27, 2015 7:15 pm
Forum: Personal Finance (Not Investing)
Topic: Savers Credit preparation for 2015
Replies: 17
Views: 1581

Re: Savers Credit preparation for 2015

There is no doubt plenty of people making pre tax retirement plan contributions, when they could have made Roth contributions and still paid no tax because their tax liability would be closer, but still not equal to the max savers credit for their tier. And even if they realized this when their ret...
by Wagnerjb
Sat Apr 25, 2015 10:04 pm
Forum: Personal Consumer Issues
Topic: Best (Available)Red Wine for under $15 preferrably under $10
Replies: 64
Views: 6220

Re: Best (Available)Red Wine for under $15 preferrably under

I like more expensive red wines, but have fallen in love with Columbia Crest H3 as a fantastic bargain and great every day kind of wine. My wife picks it up at Costco and I have around 50 bottles of it in my wine fridge (a little left from the 2010 vintage but mostly 2012...which was rated a fantas...
by Wagnerjb
Fri Apr 24, 2015 6:47 pm
Forum: Personal Consumer Issues
Topic: Best (Available)Red Wine for under $15 preferrably under $10
Replies: 64
Views: 6220

Re: Best (Available)Red Wine for under $15 preferrably under

Re: Best (Available)Red Wine for under $15 preferrably under Postby srqfacc » Thu Apr 23, 2015 8:58 pm Columbia Crest Cabernet. $7.99 at Costco. Routinely better than many $20 bottles IMHO +1 Definitely punches above its weight. But be sure to get the Grand Estates. They have other entry level wine...
by Wagnerjb
Tue Apr 21, 2015 7:17 pm
Forum: Investing - Theory, News & General
Topic: "How much of your portfolio is in index funds, and why?"
Replies: 91
Views: 9251

Re: "How much of your portfolio is in index funds, and why?"

The best question is, "how much of your portfolio is invested in low cost, well diversified, passive and tax efficient investments"? For me, the answer is 100%. It seems naive to overlook investments such as TIPs, Short Term Treasuries, Tax Managed funds, DFA funds and passively held indiv...
by Wagnerjb
Fri Apr 17, 2015 8:47 am
Forum: Investing - Help with Personal Investments
Topic: UTMA and Coverdell
Replies: 16
Views: 997

Re: UTMA and Coverdell

Since the child is contributing their own money to the Coverdell, they should be the owner. How does it work, then? Will I, as the parent, be able to use the money for her benefits, then? Or only she, as the owner, can use the money? When she is considered a minor, you (or the Custodian, if not you...
by Wagnerjb
Thu Apr 16, 2015 1:34 pm
Forum: Personal Finance (Not Investing)
Topic: Accelerated RSU vesting, FICA taxes
Replies: 4
Views: 616

Re: Accelerated RSU vesting, FICA taxes

mikep wrote:What if the RSU value goes up before it vests if you stay employed? Is the medicare tax taken again on the increase, or refunded on the decrease?



Not in my experience.
by Wagnerjb
Thu Apr 16, 2015 8:51 am
Forum: Personal Finance (Not Investing)
Topic: Accelerated RSU vesting, FICA taxes
Replies: 4
Views: 616

Re: Accelerated RSU vesting, FICA taxes

As I understand the rules, they have to do with the "risk of forfeiture". At my company (and yours too I am pretty sure), if you leave the company before a certain retirement age you will forfeit any unvested RSUs. This is the "risk of forfeiture" that exists. When you reach a ce...
by Wagnerjb
Wed Apr 15, 2015 9:02 am
Forum: Investing - Theory, News & General
Topic: Roth IRA for Teeneagers
Replies: 24
Views: 1836

Re: Roth IRA for Teeneagers

I did the same thing as the OP. A few years ago my son left college early and had a low-paying job. He was basically supporting himself, so saving money was out of the question. I made a Roth contribution for him the first year and it negated his income tax, thanks to the retirement savers credit. I...
by Wagnerjb
Wed Apr 15, 2015 8:46 am
Forum: Personal Finance (Not Investing)
Topic: 2015 tax effects of missed 2014 RMD
Replies: 7
Views: 632

Re: 2015 tax effects of missed 2014 RMD

If you filed the 5329 correctly and advised that you made up the missed 2014 RMD, you will likely never hear further from the IRS and that means the waiver was approved. How the RMD delinquency affects your 2014 or 2015 tax bill has never been a factor in whether the IRS waives the penalty or not. ...
by Wagnerjb
Mon Apr 13, 2015 8:15 am
Forum: Personal Finance (Not Investing)
Topic: how to avoid $75k AMT tax hit next year?
Replies: 12
Views: 2387

Re: how to avoid $75k ATM tax hit next year?

Met w our accountant, he projects $75k in ATM taxes next year. His rule of the thumb is that we need to generate an additional 3x$75k=$225k in ordinary income to avoid the tax. any ideas besides a 2nd job? tia Can someone help me understand the reasoning here? That if you generate an additional $22...
by Wagnerjb
Sun Apr 12, 2015 11:21 am
Forum: Investing - Theory, News & General
Topic: International Investing
Replies: 65
Views: 4933

Re: International Investing

Not really, somewhere around half the revenues from the S&P500 come from outside the U.S., many companies in the index are domiciled outside the U.S., some of the companies are actually largely dependent on non-U.S. operations. I certainly don't see it as a bet on one country or another, but it...
by Wagnerjb
Sat Apr 11, 2015 3:47 pm
Forum: Investing - Theory, News & General
Topic: Inflation Protection [(Morningstar article)]
Replies: 7
Views: 1292

Re: Inflation Protection

Actually, don't just tell me where to find that job. Tell the people with average or below-average income whose inflation-adjusted wages have fallen since the beginning of the century. Even people in the 75th percentile have barely kept pace with inflation. That has nothing to do with inflation. It...
by Wagnerjb
Sat Apr 11, 2015 3:38 pm
Forum: Investing - Theory, News & General
Topic: International Investing
Replies: 65
Views: 4933

Re: International Investing

American exceptionalism ought to die now, IMHO. Every time you invest according to a philosophy that treats U.S. stocks as a fundamentally different category from others, you are essentially subscribing to American exceptionalism. I read something recently on testing of the efficiency of global mar...
by Wagnerjb
Sat Apr 11, 2015 3:27 pm
Forum: Personal Finance (Not Investing)
Topic: Gift a child, then let them make charitable gift?
Replies: 11
Views: 1187

Re: Gift a child, then let them make charitable gift?

My point might be moot given some of the earlier replies, but I wonder if the step transaction interpretation would be valid if the charitable donation preceded the gifting event, the numbers do not correspond, and the precise charity is never specified. I don't imagine one's charitable donation de...
by Wagnerjb
Fri Apr 10, 2015 6:06 pm
Forum: Personal Finance (Not Investing)
Topic: Gift limit and Charitable Donations
Replies: 31
Views: 1469

Re: Gift limit and Charitable Donations

My parent's currently make around $3,500,000 per year and donate several hundred thousand dollars to a qualifying charity per year. I believe at their income level the allowable charitable deduction for tax purposes begins to get phased out (correct me if I'm wrong about this). It seems they could ...
by Wagnerjb
Fri Apr 10, 2015 10:11 am
Forum: Investing - Theory, News & General
Topic: International Investing
Replies: 65
Views: 4933

Re: International Investing

stemikger wrote:Besides, after 20 years of not holding international and doing pretty good, I don't want to jinx things.


I wonder if you would feel the same way if you were in Japan and refused to invest internationally the prior 20 or 30 years.
by Wagnerjb
Fri Apr 10, 2015 9:52 am
Forum: Investing - Theory, News & General
Topic: Vanguard: One Third of 401k Participants Not Maxing Match
Replies: 13
Views: 1794

Re: Vanguard: One Third of 401k Participants Not Maxing Mat

I work in the oil and gas industry and my current company matches 100% up to 15% of my pay. After paying moving expenses for a 1200 mile relocation five years ago, it took me a couple years to be able to hit the full 15% contribution to get all of the match. I am now contributing 17% with eventual ...
by Wagnerjb
Fri Apr 10, 2015 9:13 am
Forum: Investing - Theory, News & General
Topic: International Investing
Replies: 65
Views: 4933

Re: International Investing

I agree. I think some of the fear of international investing comes from the fact that most Americans have never traveled overseas. In my experience, those who have traveled (or even lived) in foreign countries are much more open minded about international investing. The diversification benefits are ...
by Wagnerjb
Wed Apr 01, 2015 8:59 am
Forum: Investing - Help with Personal Investments
Topic: Speculation - Vanguard 3 Fund Portfolio Vs Wealthfront w/TLH
Replies: 12
Views: 1382

Re: Speculation - Vanguard 3 Fund Portfolio Vs Wealthfront w

This is not even close. Vanguard is a legitimate business, with a long history and over three trillion dollars under management. Wealthfront is a scam, unless proven otherwise. You will find that the Wealthfront strategy is more "Boglehead" than many investments at Vanguard. 1) The Wealth...
by Wagnerjb
Tue Mar 31, 2015 8:03 am
Forum: Investing - Theory, News & General
Topic: Negative Yields Hit US Treasury Markets
Replies: 17
Views: 3122

Re: Negative Yields Hit US Treasury Markets

People are paying the government to hold their money! I think Doc has outsmarted all the other investors. Instead of investing with the US Treasury at negative rates, he has overpaid his income taxes. What happens? He gets a refund, but he doesn't have to "pay the government to hold his money&...

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