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by dharrythomas
Sun May 24, 2015 1:41 pm
Forum: Investing - Theory, News & General
Topic: Stemikger "Volatility is far from synonymous with risk."
Replies: 60
Views: 3398

Re: Stemikger "Volatility is far from synonymous with risk."

The reason that volatility is used to measure risk is because it is convienent to find and easy to quantify. For professors to build a model or quants to build an MVO, requires a definition of risk that is quantifiable. If you move to a behavoirial model, it works because volatility increases the li...
by dharrythomas
Tue May 19, 2015 7:54 pm
Forum: Investing - Help with Personal Investments
Topic: Joint or individual taxable accounts?
Replies: 1
Views: 245

Re: Joint or individual taxable accounts?

We've had some of both. While there are differences in tax treatment on death, I think it is mostly a personal preference. We bought some startup banks, one is held jointly and one we each own some stock separately. I will hold some of my inheritance separately because I feel like my parents and gra...
by dharrythomas
Sat May 16, 2015 5:36 pm
Forum: Investing - Help with Personal Investments
Topic: Post tax investing or Pay off 2.95% Mortgage?
Replies: 39
Views: 3619

Re: Post tax investing or Pay off 2.95% Mortgage?

Leverage always adds risk. The fact is that for the nation as a whole, all the risk tends to show up at the same time. People lose their job at the same time the market crashes. I choose to take my risk in the asset allocation. I also enjoy the extra cash flow and flexibility of not having the payme...
by dharrythomas
Sat May 16, 2015 5:19 pm
Forum: Investing - Help with Personal Investments
Topic: Vanguard Roth IRA
Replies: 7
Views: 888

Re: Vanguard Roth IRA

I'd recommend that you start with either a LifeStrategy or Target Retirement fund. They'll provide you with broad diversification. Later when you have enough invested to own individual funds, you can do that if you want. Otherwise, a LifeStrategy or Target Retirement fund would be fine to own as a o...
by dharrythomas
Sat May 16, 2015 10:21 am
Forum: Investing - Help with Personal Investments
Topic: How bad is Wellesley for taxable?
Replies: 37
Views: 2825

Re: How bad is Wellesley for taxable?

dbr just demonstrated a much deeper understanding of the mathematical concepts than I have. Thanks.
by dharrythomas
Sat May 16, 2015 10:14 am
Forum: Investing - Help with Personal Investments
Topic: Total World Stock Index
Replies: 44
Views: 3758

Re: Total World Stock Index

It's what we own in our taxable account. It's a great fund and has delivered as advertised.
by dharrythomas
Sat May 16, 2015 9:53 am
Forum: Investing - Help with Personal Investments
Topic: How bad is Wellesley for taxable?
Replies: 37
Views: 2825

Re: How bad is Wellesley for taxable?

Retiredjg, You're right that the tax drag doesn't compound, but it's a useful framework to address the impact. The drag does decrease the compound growth of your principal, therefore it has a compound impact over time. After tax drag, your investment in year two is less and your return is off of a l...
by dharrythomas
Sat May 09, 2015 9:46 am
Forum: Investing - Theory, News & General
Topic: Help me understand why maxing out Roth TSP is better than Traditional
Replies: 23
Views: 1405

Re: Help me understand why maxing out Roth TSP is better than Traditional

Anything you do with the TSP hits both sides of the account except the partial withdrawal AND you only get one. The other option is to roll the entire account over to an IRA.
by dharrythomas
Sat May 09, 2015 9:34 am
Forum: Investing - Theory, News & General
Topic: Help me understand why maxing out Roth TSP is better than Traditional
Replies: 23
Views: 1405

Re: Help me understand why maxing out Roth TSP is better than Traditional

After retirement you can use your one time partial withdrawal to move only your Roth contributions to an IRA. Then set up your TSP withdrawal strategy with only the traditional balance. While rather inflexible, the TSP does give you one out to access your Roth funds and keep the traditional in the T...
by dharrythomas
Sat May 09, 2015 9:23 am
Forum: Investing - Theory, News & General
Topic: Round Numbers in Portfolio Allocations
Replies: 49
Views: 2900

Re: Round Numbers in Portfolio Allocations

It makes a difference. The problem is that at the margin, the difference between 3 and 5% is insignificant. At 2% of your portfolio, even if you assume a 50% additional or less less return on that 2%, it changes the total portfolio return by 1%. In the real world, your difference would be ~0.1 to 0....
by dharrythomas
Sat May 09, 2015 7:29 am
Forum: Investing - Theory, News & General
Topic: Stop contributions to retirement accts due to future RMDs
Replies: 77
Views: 5409

Re: Stop contributions to retirement accts due to future RMDs

If you're looking at minimizing taxes, is there a point where based on the basis reset at death makes a taxable account better than a traditional IRA/401(K)? If you don't need the money, you can avoid paying some of the taxes forever. Might that be a consideration for someone with a large pension an...
by dharrythomas
Sat May 09, 2015 5:55 am
Forum: Investing - Theory, News & General
Topic: Stop contributions to retirement accts due to future RMDs
Replies: 77
Views: 5409

Re: Stop contributions to retirement accts due to future RMDs

My father was a CPA and noticed in the 70s and early 80s that his better off clients were complaining about required distributions and taxes. As with most of the complaints here, it is an issue of no longer having control of the tax deferral. That and the compounding effect makes the tax burden seem...
by dharrythomas
Sun Apr 26, 2015 1:24 pm
Forum: Investing - Theory, News & General
Topic: Vanguard Balanced Index from Cradle to Grave
Replies: 32
Views: 3327

Re: Vanguard Balanced Index from Cradle to Grave

LifeStrategy Moderate Growth with the broader diversification might be a better choice, but the lack of international is the only thing wrong with Balanced Index. Tax-Managed Balanced is a reasonable choice also though less diversified than Balanced Index.
by dharrythomas
Thu Apr 23, 2015 8:03 pm
Forum: Investing - Theory, News & General
Topic: VNQ/other REITS as proxy for hard real estate ?
Replies: 26
Views: 1606

Re: VNQ/other REITS as proxy for hard real estate ?

The biggest reason is that REITs are highly leveraged but it's transparent to the stockholder. So just like your leveraged house went down 30% and your equity went into negative numbers, your Real Estate goes down 30% but the value of the REIT went down 50/70/90%. That's in addition to the standard ...
by dharrythomas
Wed Apr 08, 2015 8:04 pm
Forum: Personal Finance (Not Investing)
Topic: Unwanted distribution from Roth
Replies: 23
Views: 2108

Re: Unwanted distribution from Roth

Vanguard fixed the issue in relatively short order once I got home and called them. I didn't call immediately because I was on the road and wanted the paperwork in front of me when I called.

Thanks for the help.
by dharrythomas
Thu Apr 02, 2015 10:01 pm
Forum: Personal Finance (Not Investing)
Topic: Unwanted distribution from Roth
Replies: 23
Views: 2108

Re: Unwanted distribution from Roth

Thank you for the comments and recommendations.
by dharrythomas
Tue Mar 31, 2015 9:31 pm
Forum: Personal Finance (Not Investing)
Topic: Unwanted distribution from Roth
Replies: 23
Views: 2108

Re: Unwanted distribution from Roth

Vanguard is the custodian.
by dharrythomas
Tue Mar 31, 2015 9:28 pm
Forum: Personal Finance (Not Investing)
Topic: Unwanted distribution from Roth
Replies: 23
Views: 2108

Unwanted distribution from Roth

Anyone else had this issue? If so was there a good resolution? I received a dividend cash distribution check from one of the funds in my Roth IRA today. Since I'm in my 50s and have everything on automatic reinvestment, and am pushing money into Roth accounts each year, I'm upset on a number of leve...
by dharrythomas
Sun Mar 22, 2015 1:10 pm
Forum: Investing - Theory, News & General
Topic: "Financial Simplicity: What is Your Time Worth?"
Replies: 27
Views: 3826

Re: "Financial Simplicity: What is Your Time Worth?"

Taylor, Thanks. In addition to the time, I also find that once you start to slice and dice, there is no logical stopping place Emerging markets Value Small Cap Value REITs Mid Cap Value? International Real Estate? International Small Cap? International Small Cap Value? Frankly, I've also found (much...
by dharrythomas
Fri Feb 20, 2015 7:42 pm
Forum: Investing - Theory, News & General
Topic: What is the BH consensus on international bonds?
Replies: 54
Views: 4468

Re: What is the BH consensus on international bonds?

The old GM no longer exists. The stockholders were zeroed out (as we should have been). There were assets available to pay some creditors. The secured bond holders had a higher claim under the law on the remaining assets than the unions and unsecured bond holders. The bankruptcy court decided to red...
by dharrythomas
Wed Feb 18, 2015 8:41 pm
Forum: Investing - Theory, News & General
Topic: Will LS Fund Take Big Hit if Interst Rate Rise
Replies: 13
Views: 1199

Re: Will LS Fund Take Big Hit if Interst Rate Rise

Fixed income yields stink. Jack Bogle says that that best way to estimate a bonds yield over the next decade is by its current yield. Basically what you lose in the price of the bond, you'll make up in interest and reinvesting at the higher rates which will leave you at zero or a little lower after ...
by dharrythomas
Wed Feb 18, 2015 8:25 pm
Forum: Investing - Theory, News & General
Topic: Social security strategy with wide age gap between spouses?
Replies: 18
Views: 1741

Re: Social security strategy with wide age gap between spous

We are in a similar situation with the lower earning/less time in the system spouse being older. Our plan is for the older spouse to wait until full retirement to draw SS. Then draw off of their smaller benefit until the younger spouse turns 62. Depending on circumstances, the younger spouse can eit...
by dharrythomas
Sat Feb 14, 2015 8:54 pm
Forum: Investing - Theory, News & General
Topic: What is the BH consensus on international bonds?
Replies: 54
Views: 4468

Re: What is the BH consensus on international bonds?

Blevine,

When thinking about the rule of law and US bonds, don't forget the GM bankruptcy and the decision to zero out secured bond and give the proceeds to pay unsecured obligations to the UAW. US is better than many countries but far from perfect.
by dharrythomas
Mon Feb 02, 2015 8:27 pm
Forum: Investing - Help with Personal Investments
Topic: Federal TSP Investment Allocations
Replies: 16
Views: 4735

Re: Federal TSP Investment Allocations

I recommend use of one of the LifeCycle Funds.
by dharrythomas
Sun Feb 01, 2015 1:55 pm
Forum: Investing - Help with Personal Investments
Topic: Walmart 401 K plan...Best options
Replies: 12
Views: 1935

Re: Walmart 401 K plan...Best options

Looks like index fund with reasonable expenses. I think you can put it in the 2035 fund. I'd also do a direct roll over of the old 401(k) plan to Vanguard and put it in TR 2035. This is probably not the optimal solution (you'll only know that when the time period is over), but it is close enough, lo...
by dharrythomas
Sun Feb 01, 2015 7:34 am
Forum: Investing - Help with Personal Investments
Topic: Should I stay in TSP L2030 ROTH or move to L2040 or L2050
Replies: 7
Views: 635

Re: Should I stay in TSP L2030 ROTH or move to L2040 or L205

You do not have to move everything at once. There is a tool where you can set a new allocation between funds. The requirement is that whatever changes you make to current allocation or future contributions applies to both Traditional and Roth portions of the account. There is currently no method of ...
by dharrythomas
Sun Feb 01, 2015 7:13 am
Forum: Investing - Help with Personal Investments
Topic: Advice on current plan and purchasing of second home
Replies: 9
Views: 1257

Re: Advice on current plan and purchasing of second home

I like living in a paid off house. It decreases risk in all the ways that borrowing money for a second house increases risk.

It also lowers your fixed expenses and cash flow requirements each month. When we paid off the house, we split the additional cash flow between saving/investing and spending.
by dharrythomas
Sat Jan 31, 2015 11:07 pm
Forum: Investing - Theory, News & General
Topic: Vesting and Normal Retirement Age
Replies: 12
Views: 1127

Re: Vesting and Normal Retirement Age

Most of the time these companies have a tiered vesting schedule similar to the example.
by dharrythomas
Sat Jan 31, 2015 11:01 pm
Forum: Investing - Theory, News & General
Topic: The missing value premium- a 10 year global lookback
Replies: 57
Views: 3553

Re: The missing value premium- a 10 year global lookback

The real bottom line is that your results are time period dependent, you only know the results for a particular time period after it is over, and for an individual you have only so much control /influence over when your time period begins and ends. I tilt and have some sector bets, over an indefinit...
by dharrythomas
Sat Jan 31, 2015 10:49 pm
Forum: Investing - Theory, News & General
Topic: Market Timing to Set Retirement Date
Replies: 16
Views: 1556

Re: Market Timing to Set Retirement Date

Sounds to me like you are happy doing what you're doing and you've got enough. I don't think the market should play any part in your decision. When you start to feel that you don't have the time to do what you want to do or it's not worth the trouble anymore retire. If you want to continue to contri...
by dharrythomas
Sat Jan 31, 2015 10:31 pm
Forum: Investing - Theory, News & General
Topic: What mutual fund companies do you use?
Replies: 63
Views: 3621

Re: What mutual fund companies do you use?

Vanguard and TSP. We don't plan to change that unless I get another job with a 401(k). First move when I retire will be to roll the Roth TSP funds to the Vanguard Roth IRA. In the past had 401(k) funds at Fidelity and Oppenheimer (both no load and reasonable but not great fees) and taxable and IRA f...
by dharrythomas
Sat Jan 31, 2015 9:55 pm
Forum: Investing - Theory, News & General
Topic: TSP contribution limits clarification
Replies: 10
Views: 771

Re: TSP contribution limits clarification

Wishing I had this problem. DW is already not happy with what we save and we're well short of maxing. Thankfully, we started early and have a reasonable balances in TSP and IRAs.
by dharrythomas
Sat Jan 31, 2015 9:47 pm
Forum: Investing - Theory, News & General
Topic: What if everyone was a Boglehead saver?
Replies: 18
Views: 2479

Re: What if everyone was a Boglehead saver?

Before you decide at least read the Austrian arguments about "The Parodox of Thrift". Investment (as the term is used in economics not on this forum) should increase the efficiency of the enterprise allowing it to profit with better products at a lower price (computers, TV). The equations ...
by dharrythomas
Tue Jan 20, 2015 8:44 pm
Forum: Investing - Theory, News & General
Topic: "When you've won the game, stop playing"
Replies: 83
Views: 9100

Re: "When you've won the game, stop playing"

Thanks Taylor! The reader comments insulting Bill Bernstein make me smile. I can remember thinking that I was as smart as some of the readers do. I don't know more, I've just got a better understanding of how little I actually know. My father told me years ago that when I had enough saved to quit. I...
by dharrythomas
Sat Jan 17, 2015 9:21 am
Forum: Investing - Help with Personal Investments
Topic: Rate/advise my 40+ year stock portfolio
Replies: 9
Views: 626

Re: Please rate/advise my 40+yr investment portfolio

Ben Graham recommended in "The Intelligent Investor", that the default asset allocation should be 50/50 with all investors somewhere between 75/25 and 25/75.

You pay your money, you take your chances.

Good Luck.
by dharrythomas
Sun Jan 11, 2015 8:26 pm
Forum: Investing - Help with Personal Investments
Topic: Does it matter which Roth to fund?
Replies: 1
Views: 414

Re: Does it matter which Roth to fund?

It depends. 1) what are you going to use the account for? The answer might be different depending on whether this will contribute to your retirement expenses or whether you want to leave it to heirs. 2) health/life expectancy of the two partners. If you've named each other as beneficiaries of the tw...
by dharrythomas
Sun Jan 11, 2015 2:31 pm
Forum: Investing - Help with Personal Investments
Topic: Alternatives to Target or LifeStrategy in Taxable Accounts?
Replies: 13
Views: 1276

Re: Alternatives to Target or LifeStrategy in Taxable Accoun

Either A or B is a reasonable option, you'll need to do different things with the LifeStrategy funds. I think C may put too much of the bond portion in municipal bonds.
by dharrythomas
Sun Jan 11, 2015 2:07 pm
Forum: Investing - Help with Personal Investments
Topic: Changing asset allocation
Replies: 13
Views: 787

Re: Changing asset allocation

Ben Graham thought the default allocation should be 50/50 and that everyone should be somewhere between 75/25 and 25/75.

One old saying "bulls make money, bears make money, pigs get slaughtered"

Good luck with whatever you decide.

Harry
by dharrythomas
Sun Jan 11, 2015 1:59 pm
Forum: Personal Finance (Not Investing)
Topic: Medallion Signature Guarantee? T.Rowe Price to Vanguard Xfer
Replies: 8
Views: 1041

Re: Medallion Signature Guarantee? T.Rowe Price to Vanguard

Check with T Rowe Price. I've dealt with several companies on various accounts and had to get a medallion guarantee once. It will be a company policy.
by dharrythomas
Sat Jan 10, 2015 8:40 pm
Forum: Investing - Theory, News & General
Topic: Performance of fundamental indexes
Replies: 21
Views: 1962

Re: Performance of fundamental indexes

I don't use it but, there is nothing wrong with fundamental indexing and it is a low expense reasonable option to get a value tilt. You don't get the same value factor load you would with a value fund but you'll be ahead when growth beats value. It is more expensive than what many of us do here whic...
by dharrythomas
Sat Jan 10, 2015 8:23 pm
Forum: Investing - Help with Personal Investments
Topic: Young dentist, No debt, Investing strategy
Replies: 10
Views: 1205

Re: Young dentist, No debt, Investing strategy

You are far to young with too many unknowns before you to take an inheritance into consideration.

Spend what you need to, save what you can, and don't forget to enjoy life as you go.

Good luck.
by dharrythomas
Fri Jan 09, 2015 7:00 pm
Forum: Investing - Theory, News & General
Topic: Do you use lifestrategy/ asset allocation funds?
Replies: 36
Views: 3296

Re: Do you use lifestrategy/ asset allocation funds?

We've got 5 Tax deferred accounts. TSP in LifeCycle fund, 2xIRA in Target Retirement, 1xRoth in Wellington. Part of the other Roth is in Balanced Index.

I believe in balanced funds. I'd be better off if I'd kept the other Roth completely in balanced fund also.
by dharrythomas
Sun Dec 28, 2014 8:07 pm
Forum: Investing - Theory, News & General
Topic: Poll: Gain of total portfolio value from investing
Replies: 37
Views: 3512

Re: Poll: Gain of total portfolio value from investing

I don't think the question is worded exactly right and I don't know the answer as i haven't tracked that close for all investments and withdrawals since 1984 when I made my first IRA contribution. If I could answer the question, it wouldn't tell you anything other than that that we've been investing...
by dharrythomas
Sun Dec 21, 2014 8:38 pm
Forum: Investing - Help with Personal Investments
Topic: Doctor with multiple retirement plans
Replies: 13
Views: 2204

Re: Doctor with multiple retirement plans

I use mostly the bond index funds. Either Vanguard or Fidelity are OK. I prefer to put bonds in the Traditional accounts, though we've got some in our Roth accounts also. I don't currently own any municipal bonds, but may soon as I have to decide how to handle an inheritance and I'm considering dump...
by dharrythomas
Sun Dec 21, 2014 2:57 pm
Forum: Investing - Help with Personal Investments
Topic: Doctor with multiple retirement plans
Replies: 13
Views: 2204

Re: Doctor with multiple retirement plans

Laura's suggestion is fine. Other than adding some bonds and getting out of debt, I have nothing to add. With $800K invested and $88K a year in annual savings at age 32, you just need to stay the course. Rough numbers, you've got $1M at 35, $3M at 45, $7M at 55, and $15M at 65 if you just keep doing...
by dharrythomas
Sun Dec 21, 2014 7:34 am
Forum: Investing - Help with Personal Investments
Topic: Trust set up for older sibling
Replies: 14
Views: 2176

Re: Trust set up for older sibling

I don't know anything about you wife's family dynamics, what her parents asked/expected her, what kind of obligation she feels to take care of her sibling, soI won't comment on whether she should set up a trust or not. I would caution you to be very careful about trying to talk her out of it. It may...
by dharrythomas
Wed Dec 10, 2014 8:27 pm
Forum: Investing - Theory, News & General
Topic: Does Mr. Bogle ALWAYS suggest Bonds?
Replies: 8
Views: 1310

Re: Does Mr. Bogle ALWAYS suggest Bonds?

I don't know for sure about Mr Bogle, but Benjamin Graham said that even enterprising investors needed a minimum of 25% bonds.
by dharrythomas
Wed Dec 10, 2014 8:22 pm
Forum: Investing - Theory, News & General
Topic: 'Might Jack Bogle Be Wrong for a Change?' [Int'l holdings]
Replies: 49
Views: 4535

Re: 'Might Vanguard Founder Jack Bogle Be Wrong for a Change

Jack Bogle is right on the facts, it's the application where people disagree. As I think I understand it, the biggest difference in the returns of US and International is currency fluctuation. (That's why for years the only international fund offered by Tweedy Browne was hedged) Depending on timefra...
by dharrythomas
Tue Dec 09, 2014 9:18 pm
Forum: Investing - Theory, News & General
Topic: Taylor--thank you!!
Replies: 9
Views: 1180

Taylor--thank you!!

Thank you for what you've done here for those of us you've helped learn about investing. More particularly, thank you for where you were and what you were doing 70 years ago this month. I truly appreciate your sacrifice and the sacrifice of of those that served with you in every theater. God Bless Y...
by dharrythomas
Tue Dec 09, 2014 8:41 pm
Forum: Investing - Theory, News & General
Topic: What is your opinion about "tilting?"
Replies: 116
Views: 9812

Re: What is your opinion about "tilting?"

I tilt to small, value, and REIT. I think the evidence supports it over the long run. Whether it works out for me depends on my start and end dates, but unlike someone cherry picking the data, I Can't use hindsight. It may work or it may not. Any of us could be in the cohort with start/end dates whe...

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