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Re: Stock index futures

The Vanguard Total Stock Market Index Fund currently own about $.32 Trillon of domestic equities. Does a $10 Billion purchase of domestic equities index futures have the same impact on domestic equity markets as a $ 10 Billion purchase of the actual domestic equities comprising the index? I will ta...
by jdilla1107
Wed Mar 26, 2014 10:13 pm
 
Forum: Investing - Theory, News & General
Topic: Stock index futures
Replies: 4
Views: 631

Re: Using Asset allocation spreadsheet w/ tax adjustment ?

Suppose that you have a 33% retirement tax rate (combined federal and state) on your 401(k), and zero on your Roth IRA. With a state tax rate of 5%, to hit 33% average tax rate as married, you would have to be withdrawing over $400,000 per year. If you are talking marginal rate, then that's doing i...
by jdilla1107
Fri Mar 21, 2014 11:08 pm
 
Forum: Investing - Theory, News & General
Topic: Using Asset allocation spreadsheet w/ tax adjustment ?
Replies: 9
Views: 573

Re: What to do without a 401k?

Everything you say sounds correct to me and I don't think there is anything else you can do along the lines of retirement accounts. Taxable can be pretty decent if you stick to passive equity index funds. It has lower cap gains and dividends rates than income rates. You could consider I bonds or EE ...
by jdilla1107
Sun Mar 16, 2014 10:00 pm
 
Forum: Investing - Help with Personal Investments
Topic: What to do without a 401k?
Replies: 18
Views: 1179

Re: GNMA

Are you asking if this news affects GNMA bonds in some direct way? Just to be clear, Ginnie Mae securities are the only mortgage-backed securities that are backed by the "full faith and credit" guaranty of the United States government. Their risk profile is essentially that of a treasury b...
by jdilla1107
Tue Mar 11, 2014 11:18 pm
 
Forum: Investing - Theory, News & General
Topic: GNMA
Replies: 6
Views: 888

Re: Large capital gain this year

To all the people down on this strategy, this is a very common TLH strategy and all of the questions can be answered with "think of tax loss harvesting, it's the same idea." The main issue with this is the time/effort to implement this strategy and the risk of less diversification. You are...
by jdilla1107
Tue Mar 11, 2014 10:13 pm
 
Forum: Investing - Help with Personal Investments
Topic: Large capital gain this year
Replies: 68
Views: 2979

Re: bond ltd term vs intermediate switch

Why did you originally invest liKe this and why are you changing now?
by jdilla1107
Mon Mar 10, 2014 7:33 am
 
Forum: Investing - Help with Personal Investments
Topic: bond ltd term vs intermediate switch
Replies: 2
Views: 354

Re: FutureAdvisor.com

This service should cost like $50 to $100 a year. 0.5% AUM is way too high. (AUM for this service doesn't even really make sense to me.) In my mind, the entire point of paying an advisor is to have a person that you trust to talk you down from the ledge and create a plan for you. This person should ...
by jdilla1107
Thu Mar 06, 2014 11:46 pm
 
Forum: Investing - Theory, News & General
Topic: FutureAdvisor.com
Replies: 8
Views: 633

Re: Public companies buying index funds

It's a method that can be used to virtually guarantee the companies long term survival. A corporation netting 50 million dollars a year can put a large portion of the net income in a boglehead like portfolio and virtually gaurantee the company will still be around in 100 years while the vast majori...
by jdilla1107
Thu Feb 27, 2014 11:18 pm
 
Forum: Investing - Theory, News & General
Topic: Public companies buying index funds
Replies: 14
Views: 1339

Re: Reasonable to Avoid Short Term Bonds in Long Term invest

I avoid short term bonds as you suggest. Short term treasuries are a completely pointless, in my opinion. Investing in something that pays .04 to .3% is just silly for me. I basically model my own TBM by stripping out the short stuff and replacing it with: I-bonds, CDs, and intermediate bonds. (pay...
by jdilla1107
Sun Feb 23, 2014 11:57 pm
 
Forum: Investing - Help with Personal Investments
Topic: Reasonable to Avoid Short Term Bonds in Long Term investing?
Replies: 14
Views: 1009

Re: Reasonable to Avoid Short Term Bonds in Long Term invest

I avoid short term bonds as you suggest. Short term treasuries are a completely pointless I don't own many but they are not pointless. Let's say interest spikes. Your immediate term funds can't be sold until they recover (years aways) unless you want the loss. Now let's say markets tank. Military c...
by jdilla1107
Sun Feb 23, 2014 11:35 pm
 
Forum: Investing - Help with Personal Investments
Topic: Reasonable to Avoid Short Term Bonds in Long Term investing?
Replies: 14
Views: 1009

Re: Reasonable to Avoid Short Term Bonds in Long Term invest

I avoid short term bonds as you suggest. Short term treasuries are a completely pointless, in my opinion. Investing in something that pays .04 to .3% is just silly for me. I basically model my own TBM by stripping out the short stuff and replacing it with: I-bonds, CDs, and intermediate bonds. (payi...
by jdilla1107
Sun Feb 23, 2014 11:04 pm
 
Forum: Investing - Help with Personal Investments
Topic: Reasonable to Avoid Short Term Bonds in Long Term investing?
Replies: 14
Views: 1009

Re: How ETFs work

An interesting question: how close are we to the day when it would actually practical, at a reasonable cost, for someone to create a product or brokerage service like Fidelity's "baset trading" that would let take, say, $5,000 and place one single order that automatically buys tiny fracti...
by jdilla1107
Sat Feb 22, 2014 8:25 pm
 
Forum: Investing - Theory, News & General
Topic: How ETFs work
Replies: 8
Views: 663

Re: Market Timing Boom & Bust Cycles

I've worked in professional trading organizations for 10+ years. I also pretty religiously follow bogleaheads passive investing advice for my own investments. Successful trading and being a successful boglehead involve many of the same ideas: - Have a plan. - Make sure you stick to the plan - Make s...
by jdilla1107
Sat Feb 22, 2014 12:00 am
 
Forum: Investing - Theory, News & General
Topic: Market Timing Boom & Bust Cycles
Replies: 20
Views: 1289

Re: REITs in taxable

If you're in the distribution phase and spending the distributions, sure, why not? How is being in the distribution phase relevant in any way? Simple. A retiree needs cash flow from dividends. No, no, no. Retirees want qualified dividends just like everyone else and retirees should be following a t...
by jdilla1107
Wed Feb 19, 2014 11:14 pm
 
Forum: Investing - Theory, News & General
Topic: REITs in taxable
Replies: 37
Views: 2020

Re: Bonds go in taxable (whitecoatinvestor aka EmergDoc arti

But too many people are doing backflips trying to find a way to put REITs in taxable when the simple solution is to put bonds in taxable. Sorry, seems like straw man argument to me. I have never heard or read anyone doing this. The wiki labels REITs as "Very inefficient" and bond funds as...
by jdilla1107
Wed Feb 19, 2014 10:39 pm
 
Forum: Investing - Theory, News & General
Topic: Bonds go in taxable (whitecoatinvestor aka EmergDoc article)
Replies: 96
Views: 5740

Re: Bonds go in taxable (whitecoatinvestor aka EmergDoc arti

But too many people are doing backflips trying to find a way to put REITs in taxable when the simple solution is to put bonds in taxable. Sorry, seems like straw man argument to me. I have never heard or read anyone doing this. The wiki labels REITs as "Very inefficient" and bond funds as...
by jdilla1107
Wed Feb 19, 2014 10:28 pm
 
Forum: Investing - Theory, News & General
Topic: Bonds go in taxable (whitecoatinvestor aka EmergDoc article)
Replies: 96
Views: 5740

Re: REITs in taxable

EmergDoc wrote:If you're in the distribution phase and spending the distributions, sure, why not?


How is being in the distribution phase relevant in any way?
by jdilla1107
Wed Feb 19, 2014 10:18 pm
 
Forum: Investing - Theory, News & General
Topic: REITs in taxable
Replies: 37
Views: 2020

Re: REITs in taxable

Yes, Doc, a little more explanation needed. No, that's completely wrong. The part that is yours is a function of your marginal rate at withdrawal . Not always easy to know without a crystal ball. And more than one rate may apply, if your RMDs span multiple brackets or phase-outs. That should read, ...
by jdilla1107
Wed Feb 19, 2014 10:07 pm
 
Forum: Investing - Theory, News & General
Topic: REITs in taxable
Replies: 37
Views: 2020

Re: REITs in taxable

From EmergDoc's post, viewing a 401K as a 0.75 * Roth (since I'm in the 25% tax bracket) was an eye opener. I never thought of it that way. I will have to revisit the asset allocation for my specific situation again when I plan to increase my bond buying next year in my 401K. This is such a very wr...
by jdilla1107
Wed Feb 19, 2014 9:56 pm
 
Forum: Investing - Theory, News & General
Topic: REITs in taxable
Replies: 37
Views: 2020

Re: Bonds go in taxable (whitecoatinvestor aka EmergDoc arti

I think you misunderstood me. The availability of tax -advantaged space is not the investor's choice, it's what I have right now and can't change. Some of us have way more taxable (not by choice), most people have only tax advantaged. These are parameters of the problem, not conclusions. If the gis...
by jdilla1107
Wed Feb 19, 2014 9:26 pm
 
Forum: Investing - Theory, News & General
Topic: Bonds go in taxable (whitecoatinvestor aka EmergDoc article)
Replies: 96
Views: 5740

Re: Bonds go in taxable (whitecoatinvestor aka EmergDoc arti

I love the following quote and this discussion reminded me of it: (I use this in other places too. As it's pure genius.) Rule of thumb: one cup of uncooked rice will feed four people. Q: Well, but what if it's basmati rice? Shouldn't the rule be different? A: No, because it's just a rule of thumb . ...
by jdilla1107
Wed Feb 19, 2014 9:15 pm
 
Forum: Investing - Theory, News & General
Topic: Bonds go in taxable (whitecoatinvestor aka EmergDoc article)
Replies: 96
Views: 5740

Re: Bonds go in taxable (whitecoatinvestor aka EmergDoc arti

This is a terrible article. It's like like questioning the old adage of "a bird in hand, is better than two in the bush", by pointing out a single goofy example of where it didn't work once. Having that much roth space is very unrealistic. Either 1)Who can save that much in a low income b...
by jdilla1107
Wed Feb 19, 2014 9:00 pm
 
Forum: Investing - Theory, News & General
Topic: Bonds go in taxable (whitecoatinvestor aka EmergDoc article)
Replies: 96
Views: 5740

Re: Bonds go in taxable (whitecoatinvestor aka EmergDoc arti

Questioning an entire rule of thumb based on one goofy example is silly.

In addition, having that much roth space is very unrealistic. Either 1)Who can save that much in a low income bracket? or 2) Why wasn't this person doing traditional contributions?
by jdilla1107
Wed Feb 19, 2014 8:52 pm
 
Forum: Investing - Theory, News & General
Topic: Bonds go in taxable (whitecoatinvestor aka EmergDoc article)
Replies: 96
Views: 5740

Re: When tax-efficient taxable investing isn't?

Why did this happen to you? Does this mean you were you right on the border of some credits/phaseouts? I just tried this with turbo tax and my rate (like you calculated) was 18.8% and my state tax rate is a flat 5%. Without counting state, it's like 13%. (Lower than 15% because of foreign tax credit...
by jdilla1107
Tue Feb 18, 2014 11:01 pm
 
Forum: Investing - Theory, News & General
Topic: When tax-efficient taxable investing isn't?
Replies: 51
Views: 3541

Re: Splitting Total Bond Fund into its Component Parts

I break down TBM like this for tax efficiency and to avoid holding short term treasuries. I think the difference may be significant. Possibly around .5-.75% per year. Some other options to consider. Short term treasuries have much lower yields than CDs or I bonds. EE bonds offer tax deferred investi...
by jdilla1107
Sun Feb 16, 2014 7:34 pm
 
Forum: Investing - Theory, News & General
Topic: Splitting Total Bond Fund into its Component Parts
Replies: 5
Views: 494

Re: Bonds vs Muni Bonds in Taxable

The bond income would be taxed at your highest marginal rate, so I'm not sure where you are going with the effective rate thinking.

Also, you should play with something like TurboTax or TaxCaster to see what your real marginal tax rate is. Various credit phase outs can make it more than 25%.
by jdilla1107
Thu Feb 13, 2014 11:02 pm
 
Forum: Investing - Help with Personal Investments
Topic: Bonds vs Muni Bonds in Taxable
Replies: 16
Views: 1130

Re: A curious case of actrive funds

john94549 wrote:I get hooted down with regularity for noting my modest, little, out-performing fund, UNSCX. Actually, it's not so little anymore.


A 3,5,and 10 year growth chart of this compared to VGT looks like either similar or slight underperformance to me. What are you comparing it to?
by jdilla1107
Thu Feb 13, 2014 10:41 pm
 
Forum: Investing - Theory, News & General
Topic: A curious case of active funds
Replies: 9
Views: 852

Re: What percentage should be in High Yield AKA "Junk" bonds

People on this forum like to say that the market is efficient, but then when it comes to junk bonds like to say that you get better risk adjusted returns in stocks over high yields bonds. Does this mean that the market is not efficiently pricing the high yield risk correctly? Which is it? These are ...
by jdilla1107
Thu Feb 13, 2014 10:02 pm
 
Forum: Investing - Help with Personal Investments
Topic: What percentage should be in High Yield AKA "Junk" bonds
Replies: 32
Views: 2100

Re: Are REITs still overvalued, as they were in 2013?

It will be interesting to come back to this thread in a year or two from now... It really won't though. I can already tell you the results, because I can see into the future. Here goes... The people who guessed right will feel smart, the people who were wrong won't come back, and the smart ones won...
by jdilla1107
Wed Feb 12, 2014 9:25 pm
 
Forum: Investing - Help with Personal Investments
Topic: Are REITs still overvalued, as they were in 2013?
Replies: 44
Views: 3341

Re: A $1000 lesson on how manipulative salespeople can be?

This is called "Buyer's Remorse." You have a classic case of it. Every sales person in the world is familiar with it. That is why there are rules and policies. You clearly liked what you saw in the shop and wanted it. You bought it. No one tricked you. No one manipulated you. You got what...
by jdilla1107
Sun Feb 09, 2014 6:48 pm
 
Forum: Personal Finance (Not Investing)
Topic: A $1000 lesson on how manipulative salespeople can be?
Replies: 70
Views: 7955

Re: A $1000 lesson on how manipulative salespeople can be?

Write a letter to this company. Mention that you will file a complaint with the Better Business Bureau if it's not resolved to your satisfaction. This should be enough. If it's not, dispute it with the credit card and stick to your guns. It sounds like you didn't understand what you were agreeing to...
by jdilla1107
Sun Feb 09, 2014 6:46 pm
 
Forum: Personal Finance (Not Investing)
Topic: A $1000 lesson on how manipulative salespeople can be?
Replies: 70
Views: 7955

Re: 1231 gains/losses

Thanks for the response. That was what I gathered as well. Since, I have no 1231 gains or losses in the year, that implies there's nothing to do with them in the year, correct?

In other words, they were losses I took in past years. ( I can't take them again.)
by jdilla1107
Thu Feb 06, 2014 11:48 pm
 
Forum: Investing - Help with Personal Investments
Topic: 1231 gains/losses
Replies: 2
Views: 448

Re: I sold all of my bonds...did I make a mistake?

You would have been right if the OP had kept his fixed income allocation by moving from bonds to CDs. That's not what the OP did. He/she moved from bonds to equities (not really clear why, other than performance chasing or not knowing). One highly possible reason is because he has been brainwashed ...
by jdilla1107
Wed Feb 05, 2014 11:46 pm
 
Forum: Investing - Help with Personal Investments
Topic: I sold all of my bonds...did I make a mistake?
Replies: 24
Views: 3438

1231 gains/losses

This might be a bit complex for this forum, but I'll give it a shot. :D For the past several years, I have had complicated taxes. I was as a business owner and paying heavy AMT. I used a CPA because I had a 6 page hand-typed K1, I could not comprehend. In 2013, my taxes became very simple with just ...
by jdilla1107
Wed Feb 05, 2014 11:02 pm
 
Forum: Investing - Help with Personal Investments
Topic: 1231 gains/losses
Replies: 2
Views: 448

Re: HSA and Taxes

"I believe if I'm reading the 1040 tax return correctly that at the end of the year I still get the tax benefit of having contributed to an HSA no matter which option I choose." That's incorrect. If your employer deducts that pre-tax, it will appear on your W-2 with a "W" code, ...
by jdilla1107
Wed Feb 05, 2014 10:48 pm
 
Forum: Investing - Help with Personal Investments
Topic: HSA and Taxes
Replies: 8
Views: 1051

Re: HSA and Taxes

Doing it through your employer has the advantage of being before social security and medicare taxes. HSA contributions are pre-fica taxes too. If you do it yourself, you miss out on that.

(If your income puts your over the max social security amount, then you just get the medicare deduction.)
by jdilla1107
Wed Feb 05, 2014 10:46 pm
 
Forum: Investing - Help with Personal Investments
Topic: HSA and Taxes
Replies: 8
Views: 1051

Re: What is your tax loss harvest strategy?

I don't get this question at all. What strategies exist for TLHing besides what the definition of TLHing says to do?
by jdilla1107
Sun Feb 02, 2014 3:26 pm
 
Forum: Investing - Help with Personal Investments
Topic: What is your tax loss harvest strategy?
Replies: 13
Views: 902

Re: Newbie - High Income Earner Investment Advice

Here are some things I do: Max 401k backdoor roth ira 529s for college savings (for when you have a kid. You could consider putting one in your name and transfer it later.) Muni bonds are federal tax free EE bonds return 3.53% a year tax deferred if held for 20 years. (I am 34, aiming to retire at 5...
by jdilla1107
Sun Jan 26, 2014 8:38 pm
 
Forum: Investing - Help with Personal Investments
Topic: Newbie - High Income Earner Investment Advice
Replies: 14
Views: 1436

Re: Why No Tax Exempt ETFs from Vanguard?

The ishares ones appear to have almost no liquidity and volume. The trading companies that make markets in etfs, do so by trading in the underlying markets. In the case of muni bonds, I believe the underlying markets are very illiquid. In other words, an ETF can will only be as liquid as the markets...
by jdilla1107
Wed Jan 22, 2014 9:26 pm
 
Forum: Investing - Help with Personal Investments
Topic: Why No Tax Exempt ETFs from Vanguard?
Replies: 8
Views: 662

Re: 'Bonds = Age - 10' vs Target fund bond allocations

Remember that basing AA on age is a rule of thumb so as not to confuse people too much. But, really there is more to it. Personally, I feel that portfolio size is an important additional variable. (I'm sure we can all think of others as well.) But these are very different to me: 35 yr old with portf...
by jdilla1107
Sat Jan 18, 2014 9:48 am
 
Forum: Investing - Help with Personal Investments
Topic: 'Bonds = Age - 10' vs Target fund bond allocations
Replies: 17
Views: 1135

Re: Impending Bond Crash - What NOT to do!

Personally, I lowered my bond allocation dramatically in accordance with these facts and others (eg: I forecast 10 year real equity returns @ 3.6%, availability of higher yield alternative fixed income assets, etc). May I ask what fixed-income vehicles you're using in lieu of bonds? Sure. But befor...
by jdilla1107
Thu Jan 16, 2014 9:30 pm
 
Forum: Investing - Theory, News & General
Topic: Impending Bond Crash - What NOT to do!
Replies: 50
Views: 6357

Re: MF to ETF conversion

Are ETF's insured by SPIC? I don't think so; someone please correct me if I'm wrong. Yes, they are: (and it's SIPC) In general, SIPC covers notes, stocks, bonds, mutual fund and other investment company shares, and other registered securities. It does not cover instruments such as unregistered inve...
by jdilla1107
Mon Jan 13, 2014 9:28 pm
 
Forum: Investing - Help with Personal Investments
Topic: MF to ETF conversion
Replies: 4
Views: 282

Re: Vanguard total market- VTSMX, VTSAX, or VTI

In the big picture, it doesn't really matter. When it comes to decisions, this one is pretty insignificant. I use the mutual funds in my IRAs because the automatic reinvestment is nice there. I use ETFs in taxable because I think they have the ability to be slightly more tax efficient and I don't ne...
by jdilla1107
Sun Jan 12, 2014 11:46 pm
 
Forum: Investing - Help with Personal Investments
Topic: Vanguard total market- VTSMX, VTSAX, or VTI
Replies: 16
Views: 1863

Re: To ETF or Not to ETF

Neither does the guy who lost 59% when he unluckily picked the wrong time of day to sell. There is no reason this should EVER happen to anybody. There is no reason to EVER use an actual market order. They should be outlawed, in my opinion. In fact, many of the stock exchanges implement market order...
by jdilla1107
Sun Jan 12, 2014 10:27 am
 
Forum: Investing - Theory, News & General
Topic: To ETF or Not to ETF
Replies: 85
Views: 35472

Re: Made a $50k bet on Healthcare

Gambler wrote:that thread gave me a new idea.
instead of trying to catch a falling knife, i'm going to ride the wave.


How long until you change your mind and get the next "idea"? If it looks wrong in 4 months will you just bail and move onto the next one?
by jdilla1107
Sat Jan 11, 2014 5:43 pm
 
Forum: Investing - Help with Personal Investments
Topic: Made a $50k bet on Healthcare
Replies: 43
Views: 4805

Re: 25x expenses and early retirement

btenny wrote:Do you have any significant pre-existing conditions that will make insurance more expensive?


Doesn't the affordable care act eliminate this?
by jdilla1107
Sat Jan 11, 2014 3:37 pm
 
Forum: Personal Finance (Not Investing)
Topic: 25x expenses and early retirement
Replies: 17
Views: 2383

Re: Do I pay taxes today or when I retire?

I'm starting to get confused. I thought that it's typically: Roth > Tax-advantaged > Taxable or Tax-advantaged > Roth > Taxable Why the debate? Can some one give an example of how a taxable might better than the other two options? I think this is correct. (Taxable is the worst) But many people hit ...
by jdilla1107
Tue Jan 07, 2014 12:22 am
 
Forum: Investing - Theory, News & General
Topic: Do I pay taxes today or when I retire?
Replies: 63
Views: 3490

Re: How safe is my investment in a Leverage ETF?

I believe that this can be accomplished by application of many simple to follow strategies. This is a funny statement. Almost anything "can be accomplished". The point is, are your risk adjusted returns actually better than an appropriate benchmark? Don't you think if those strategies wor...
by jdilla1107
Tue Jan 07, 2014 12:06 am
 
Forum: Investing - Help with Personal Investments
Topic: How safe is my investment in a Leverage ETF?
Replies: 17
Views: 930

Re: ETFs Market or Limit order

I always use market orders on VTI, VV, VEU, VXUS, VBR, VSS. I try to buy in lots of 100s, although occasionally I will buy an odd lot. Wells Fargo does a reasonably good job of getting a fair price quickly - what you see quoted right before you pull the trigger is almost always what you get within ...
by jdilla1107
Sun Jan 05, 2014 11:10 am
 
Forum: Investing - Theory, News & General
Topic: ETFs Market or Limit order
Replies: 31
Views: 3964
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