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Re: Long-term gain (or loss) held less than a year?

Is it possible that she had some additional shares of the same fund that were purchased earlier, and it was actually those shares that were sold- as in first in first out? Then those first shares would have been a long term loss. She hadn't owned anything with Vanguard previously, and all the share...
by red5
Fri Feb 27, 2015 2:03 pm
 
Forum: Personal Finance (Not Investing)
Topic: Long-term gain (or loss) held less than a year?
Replies: 15
Views: 670

Re: International stock index in Taxible account for tax cre

I also had plans to buy $3.5k of the International Stock funds (VGTSX), but the expense ratio is 0.22%. Wouldn't it be more beneficial for me to just get the ETF version of this (VXUS) to get the cheaper 0.14% expense ratio? I don't plan to constantly trade the ETF, but rather just taking advantage...
by red5
Thu Feb 26, 2015 5:28 am
 
Forum: Investing - Help with Personal Investments
Topic: International stock index in Taxible account for tax credit
Replies: 6
Views: 638

Re: Changing Investments within a ROTH IRA?

That's how I would lean as well but you should consider posting in this format first. Do you have bonds?

https://www.bogleheads.org/forum/viewtopic.php?f=1&t=6212



P.S. I would definitely at the very minimum question that health care fund, if nothing else.
by red5
Wed Feb 25, 2015 1:39 pm
 
Forum: Investing - Help with Personal Investments
Topic: Changing Investments within a ROTH IRA?
Replies: 1
Views: 187

Re: Lower ER or better performance

Also, past performance does not lead to future performance. A fund that did quite well in the past may not do so well in the future. No one knows.
by red5
Wed Feb 25, 2015 9:55 am
 
Forum: Investing - Theory, News & General
Topic: Lower ER or better performance
Replies: 16
Views: 887

Re: Vanguard Brokerage 1099 Available

livesoft wrote:Yes, this is normal.


Thank you for the quick response.
by red5
Wed Feb 25, 2015 8:44 am
 
Forum: Personal Finance (Not Investing)
Topic: Vanguard Brokerage 1099 Available
Replies: 31
Views: 1786

Re: Vanguard Brokerage 1099 Available

Is it normal for "Total ordinary dividends (Box 1a)" to be different from "Foreign income" which is listed on the "2014 Foreign Tax Paid" page? This would be for vxus - Vanguard Total International Stock Index There were no capital gains distributions. The ordinary divi...
by red5
Wed Feb 25, 2015 8:43 am
 
Forum: Personal Finance (Not Investing)
Topic: Vanguard Brokerage 1099 Available
Replies: 31
Views: 1786

Re: Beginner Roth IRA asset allocation question

Well it would be redundant to invest in the retirement fund AND to also invest in those three funds you chose. They are indeed the same [with the exception of the small amount of total international bond in the retirement funds]. However there is not necessarily anything wrong with doing it that way...
by red5
Wed Feb 25, 2015 5:12 am
 
Forum: Investing - Help with Personal Investments
Topic: Beginner Roth IRA asset allocation question
Replies: 2
Views: 276

Re: Is the first 100k really the hardest?

The magic of compounding begins with the first cent. Reaching 100k is just a psychological event. If the future looks like the past then you would reach 200k faster with the help of compounding. I think that is what is meant by the statement that reaching the first 100k is the hardest. And congratul...
by red5
Wed Feb 25, 2015 5:04 am
 
Forum: Personal Finance (Not Investing)
Topic: Is the first 100k really the hardest?
Replies: 49
Views: 6406

Re: What are Costco's best deals?

Dog food (good ingredients, low price)
Dog beds
Milk (buying three gallons a week adds to a lot of savings over a year)
.
.
.
The others seem to have exhausted many of the other good deals.
by red5
Wed Feb 25, 2015 4:52 am
 
Forum: Personal Consumer Issues
Topic: What are Costco's best deals?
Replies: 124
Views: 8752

Re: Admiral Shares vs ETFs for stocks

Other than the automatic contribution, what is the difference if I put $10k towards the mutual fund (VTSAX) vs the ETF version (VTI) ? Vanguard's Total Stock Market Admiral shares (VTSAX) have a $10k minimum purchase and an expense ratio of 0.05%. The ETF version of this (VTI) also has an expense r...
by red5
Wed Feb 25, 2015 4:45 am
 
Forum: Investing - Theory, News & General
Topic: Admiral Shares vs ETFs for stocks
Replies: 10
Views: 850

Re: How to compute my retirement amount, and am I saving eno

So if I use 6% instead, and ignore stuff like expense ratios, would these figures make sense? Roth IRA: $845,606 401k: $1,452,166 Roth withdrawal/year: $33,824 401k withdrawal/year: $58,086 (before tax) Is this right? Well sort of. I quickly did an Excel calculation. Starting out with 40k, saving 1...
by red5
Tue Feb 24, 2015 1:51 pm
 
Forum: Investing - Help with Personal Investments
Topic: How to compute my retirement amount, and am I saving enough?
Replies: 66
Views: 3030

Re: How to compute my retirement amount, and am I saving eno

If I am to compute these values by-month (to be precise), would I simply divide the expected annual return by 12? For example if I assume a real return of 4% per year from the market, do I use the rate .04/12 when I grow my accounts month-to-month? Would I compute the 401k and Roth IRA separately? ...
by red5
Tue Feb 24, 2015 12:37 pm
 
Forum: Investing - Help with Personal Investments
Topic: How to compute my retirement amount, and am I saving enough?
Replies: 66
Views: 3030

Re: How to compute my retirement amount, and am I saving eno

Thanks for the explanation, makes sense. How does withdrawal work? I figure you just did 4% of 1.4mil, but does the retirement account continue to grow during retirement, or is it fully "cashed out of the market"? And why 4%? Well 4% is just a rule of thumb and probably not something I wi...
by red5
Tue Feb 24, 2015 11:01 am
 
Forum: Investing - Help with Personal Investments
Topic: How to compute my retirement amount, and am I saving enough?
Replies: 66
Views: 3030

Re: How to compute my retirement amount, and am I saving eno

1. Don't compare yourself to others, especially Bogleheads! 2. With about 40k you are not way behind. 3. You are not eternally screwed. You make good money and you are (or want to?) saving 21% Given the way the math has worked out in the calculators, I'm not sure how these are compatible statements...
by red5
Tue Feb 24, 2015 10:49 am
 
Forum: Investing - Help with Personal Investments
Topic: How to compute my retirement amount, and am I saving enough?
Replies: 66
Views: 3030

Re: How to compute my retirement amount, and am I saving eno

1. Don't compare yourself to others, especially Bogleheads! 2. With about 40k you are not way behind. 3. You are not eternally screwed. You make good money and you are (or want to?) saving 21% 4. I personally don't factor in inflation. I use real rates in projections. 5. A quick back of the envelope...
by red5
Tue Feb 24, 2015 10:17 am
 
Forum: Investing - Help with Personal Investments
Topic: How to compute my retirement amount, and am I saving enough?
Replies: 66
Views: 3030

Re: Is this formula for asset allocation a good one?

One issue with using math is that it may simply not apply in the future. You know the whole past results mantra... However my portfolio is fairly close to the portfolio you proposed in your original post. Probability takes these concepts into account. For example I don't know what a 6-sided die wil...
by red5
Mon Feb 23, 2015 3:55 pm
 
Forum: Investing - Help with Personal Investments
Topic: Is this formula for asset allocation a good one?
Replies: 30
Views: 1059

Re: Admiral Shares

If I recall correctly the day after I invested enough to qualify me for admiral shares a message popped up on my Vanguard homepage asking me to convert. I did and that night the investor shares converted.
by red5
Mon Feb 23, 2015 3:05 pm
 
Forum: Investing - Help with Personal Investments
Topic: Admiral Shares
Replies: 4
Views: 305

Re: Is this formula for asset allocation a good one?

Based on your questions, however, I think you might benefit from reading a couple of starter books. A good one is the Bogleheads Guide to Investing. I've already gone through the book. It seems fine for beginners but I dislike the lack of mathematical rigor. If there's no math, I don't trust it. I ...
by red5
Mon Feb 23, 2015 3:03 pm
 
Forum: Investing - Help with Personal Investments
Topic: Is this formula for asset allocation a good one?
Replies: 30
Views: 1059

Re: Ongoing quest to optimize expense ratios - for discussio

-What is your portfolio expense ratio (and how did you calculate it)? -What actions have you taken (or are you planning to take) to reduce expenses? -What constraints do you face in optimizing your expense ratios (example: bad 401ks)? -What are your "I know it's a little high but I think it's ...
by red5
Mon Feb 23, 2015 5:24 am
 
Forum: Investing - Help with Personal Investments
Topic: Ongoing quest to optimize expense ratios - for discussion
Replies: 4
Views: 341

Re: Target Retirement Fund over self managed portfolio

I agree with what Stlutz said. Here is an additional thought. Could this possibly have anything to do with certain sectors / classes underperforming? Has small cap value done a bit poorly relative to the total stock market? Has some international (emerging, small cap) done poorly relative to total i...
by red5
Mon Feb 23, 2015 4:55 am
 
Forum: Investing - Help with Personal Investments
Topic: Target Retirement Fund over self managed portfolio
Replies: 6
Views: 944

Re: AA: Keep constant regardless of state of market?

Are you fairly young? Have you always been comfortable with your 90/10 allocation? It is a bit high in equities. I would not suggest changing AA based on where the market is though. However you should ponder what a good allocation is based on need of risk. Perhaps 90/10 is good, maybe something diff...
by red5
Sun Feb 22, 2015 5:13 am
 
Forum: Investing - Help with Personal Investments
Topic: AA: Keep constant regardless of state of market?
Replies: 10
Views: 926

Re: help me speed up my computer

Never click on a link! NEVER How far does one go with never clicking links? I honestly don't know. -I usually don't click links in e-mail. -I usually don't click links if the link when I hover over the link shows a different address (especially e-mail, but also in normal web browsing). -I am often ...
by red5
Sat Feb 21, 2015 5:44 am
 
Forum: Personal Consumer Issues
Topic: help me speed up my computer
Replies: 67
Views: 3475

Re: Market Top

With DOW and S&P making new highs wondering what are the visitors to this forum doing. Cash out play money ? Sell individual stock positions and reinvest in index funds ? I have thought that the market was peaking ever since the S&P 500 made it to 1400 a few years ago...but I haven't done a...
by red5
Sat Feb 21, 2015 4:58 am
 
Forum: Investing - Theory, News & General
Topic: [What to do at] Market Top
Replies: 57
Views: 4915

Re: Pick-Pockets

Athens, Greece. A lady came running up behind me, grabbed into my back pocket and kept running into a waiting car and sped off. Luckily my back pocket was empty.
by red5
Fri Feb 20, 2015 11:12 am
 
Forum: Personal Consumer Issues
Topic: Pick-Pockets
Replies: 63
Views: 5079

Re: Is this good time to invest in 3-fund portfolio

I have been following 3-fund portfolio for some time. Now, I have been thinking that the market is peaking and therefore have some cash instead of putting in 3-fund portfolio. Where should I invest this cash while I wait? Wondering if I should pay off the mortgage instead. Mortgage is currently at ...
by red5
Fri Feb 20, 2015 10:10 am
 
Forum: Investing - Help with Personal Investments
Topic: Is this good time to invest in 3-fund portfolio
Replies: 14
Views: 1138

Re: Quicken: mutual fund/ETF cost basis. Help!

It is part of the cost of the investment though. A reinvestment of a dividend and capital gain distribution is two transactions. One, you receive the distribution. Two, you purchase more shares. Are you just looking for your original tax lot?
by red5
Fri Feb 20, 2015 4:26 am
 
Forum: Investing - Theory, News & General
Topic: Quicken: mutual fund/ETF cost basis. Help!
Replies: 6
Views: 297

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

If using real rates would the difference still be the same (7x) ? There are two possible meanings for this question. One is, if "inflation had the same trajectory it had". I actually feel very justified in taking this view in response to anyone pointing to a "huge bull market" i...
by red5
Thu Feb 19, 2015 2:42 pm
 
Forum: Investing - Theory, News & General
Topic: Will LS Fund Take Big Hit if Interst Rate Rise
Replies: 13
Views: 1064

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

Between 1982 - 2014, the Barclay's index returned 1325% . This is, of course, wonderful. (Data: http://www.bogleheads.org/wiki/Barclays_US_Aggregate_Bond_Index#Index_Returns) Had the bond market not moved at all since 1982 and using the 5 year Treasury yield as a proxy (don't have the index yield a...
by red5
Thu Feb 19, 2015 1:06 pm
 
Forum: Investing - Theory, News & General
Topic: Will LS Fund Take Big Hit if Interst Rate Rise
Replies: 13
Views: 1064

Re: A case for long term government bonds

Okay so articles like this are very confusing for the young BH like me. I've been under the assumption that if I'm willing to stomach the greatest risk for the greatest reward equities is the play. In fact when I responded to Vanguard tool regarding AA, it came back 100% equities. Then you see some...
by red5
Thu Feb 19, 2015 9:03 am
 
Forum: Investing - Theory, News & General
Topic: A case for long term government bonds
Replies: 40
Views: 3071

Re: Is VTSMX and VTSAX duplicatiing?

Grabiner and red5 these are brilliant posts. You essentially analyzed and dissected this information so I can understand what I am doing. The information you have given me has helped me enormously. I have decided to add VTSAX and VBMFX into my ROTH IRA and Taxable account. I am aware of the minimum...
by red5
Wed Feb 18, 2015 7:50 pm
 
Forum: Investing - Help with Personal Investments
Topic: Is VTSMX and VTSAX duplicatiing?
Replies: 16
Views: 2350

Re: Is VTSMX and VTSAX duplicatiing?

Grabiner gave you a response last night and he is one of the brightest members of the forum. The VTTHX fund is not performing well for 2014. I believe the returns were less then 7% last year -Concerning VTTHX not performing well: A big goal of Boglehead investing is diversification. That means inves...
by red5
Wed Feb 18, 2015 5:18 am
 
Forum: Investing - Help with Personal Investments
Topic: Is VTSMX and VTSAX duplicatiing?
Replies: 16
Views: 2350

Re: Is VTSMX and VTSAX duplicatiing?

This is awesome information. Thanks for clearing that up for me. I knew I was heavily invested in stocks on VTTHX because I wanted my fund to be more aggressive --- so that's good. I wanted 80% stocks. I will do some rebalancing as I get older. I did read Boglehead's book and he mentioned bonds sho...
by red5
Tue Feb 17, 2015 5:32 am
 
Forum: Investing - Help with Personal Investments
Topic: Is VTSMX and VTSAX duplicatiing?
Replies: 16
Views: 2350

Re: Is VTSMX and VTSAX duplicatiing?

The VTTHX gives me just that? Gives me what? Broad exposure to U.S. investment grade bonds? VTTHX gives you four different index funds, one of which is Total Bond Market [it is total bond that gives you the broad exposure to US investment grade bonds]. Here is a link for its portfolio page at Vangu...
by red5
Mon Feb 16, 2015 6:15 am
 
Forum: Investing - Help with Personal Investments
Topic: Is VTSMX and VTSAX duplicatiing?
Replies: 16
Views: 2350

Re: Is VTSMX and VTSAX duplicatiing?

Really? I want to invest more money into a vanguard index fund. I am maxed out in my Roth IRA in which my VFINX and Vanguard retirement go into. Should I just open up a taxable account and invest in Vanguard Total Stock Index fund? You are choosing some funds with a considerable amount of overlap. ...
by red5
Sun Feb 15, 2015 5:17 am
 
Forum: Investing - Help with Personal Investments
Topic: Is VTSMX and VTSAX duplicatiing?
Replies: 16
Views: 2350

Re: Rooting for stock to go down to sell?

cherijoh wrote: I'm not sure I'd be willing to wait for the inevitable market pull back to sell individual stocks though.


Nor would I. I went through the same experience the OP is going through now. I chose not to wait for some future drop and it helped that the cap gains I had were not significant.
by red5
Sat Feb 14, 2015 4:58 am
 
Forum: Investing - Help with Personal Investments
Topic: Rooting for stock to go down to sell?
Replies: 22
Views: 1681

Re: Rooting for stock to go down to sell?

If you own individual stocks that you'd prefer not to have (assume you acquired the stock pre-boglehead days), but still want that money invested in stocks (say, TSM), I seem to be conflicted as to what I prefer to happen. If I have a negative cost basis, then I can sell, take the tax loss, and the...
by red5
Fri Feb 13, 2015 10:33 am
 
Forum: Investing - Help with Personal Investments
Topic: Rooting for stock to go down to sell?
Replies: 22
Views: 1681

Re: New to Index Funds

The S&P 500 index at Vanguard is a fine fund for stocks. I would also recommend to at least take a look at Vanguard's Total Stock Market fund (VTSMX), which is a more complete and representative index of public companies in the United States. However, depending on your age and time to retirement...
by red5
Fri Feb 13, 2015 4:56 am
 
Forum: Investing - Help with Personal Investments
Topic: New to Index Funds
Replies: 12
Views: 1007

Re: Is BND lagging LAG and SCHZ over the last year?

Your welcome.

It is good of you to be questioning what you see though. Sometimes a Vanguard fund will indeed miss its target. The fund we are talking about, Vanguard Total Bond, did indeed "mess up" back in 2002 and lost 2% to the index as shown here.
by red5
Thu Feb 12, 2015 2:50 pm
 
Forum: Investing - Theory, News & General
Topic: Is BND lagging LAG and SCHZ over the last year?
Replies: 3
Views: 367

Re: Day trading and capital gain tax nightmare

What are my options here? I really enjoy day trading and don't want to look into long term investments, what can I do? I once took advantage of 50 free trades in a taxable brokerage account before my index investing days. It was a rush executing all those trades. Most of my positions lasted less th...
by red5
Thu Feb 12, 2015 2:44 pm
 
Forum: Investing - Help with Personal Investments
Topic: Day trading and capital gain tax nightmare
Replies: 37
Views: 2952

Re: Cost

New to this website and this is my first post. I want to make sure my math is correct here but I came up with, for example, the Target Retirement 2040 fund. It has a 0.18% fee. So if you invested $100k in it, you would pay $180 on it. But if you purchased all 4 of the indexes inside it and invested...
by red5
Thu Feb 12, 2015 2:33 pm
 
Forum: Investing - Help with Personal Investments
Topic: Cost
Replies: 4
Views: 428

Re: Is BND lagging LAG and SCHZ over the last year?

This is a "growth of" chart from Morningstar. According to the chart all three funds are very close together over that time period. Note that VBMFX is the mutual fund version of BND and I used it in order to create a growth chart. A growth chart takes into account reinvested dividends and ...
by red5
Thu Feb 12, 2015 12:52 pm
 
Forum: Investing - Theory, News & General
Topic: Is BND lagging LAG and SCHZ over the last year?
Replies: 3
Views: 367

Re: How do slice and dicers rebalance?

noyopacific wrote:I do it once a year. I don't have any empirical evidence or great logic to support this. I do it because once a year is convenient and it helps me to remember my wife's birthday.


You mean that your wife's birthday helps remind you to rebalance, right :wink:
by red5
Wed Feb 11, 2015 8:44 am
 
Forum: Investing - Theory, News & General
Topic: How do slice and dicers rebalance?
Replies: 14
Views: 688

Re: Wiki - For new investors: The Importance of Saving Early

The statistic that I have always found persuading goes like this: Saving $5000 a year from age 25 to 35 yields more than saving $5000 a year from 35 to 60. http://cdn.darwinsfinance.com/wp-content/uploads/2009/05/stock-market-investing-table-500x422.jpg I've heard this statistic in various forms ma...
by red5
Wed Feb 11, 2015 4:23 am
 
Forum: Investing - Theory, News & General
Topic: Wiki - For new investors: The Importance of Saving Early
Replies: 27
Views: 2355

Re: Performance of TSP funds

It is a bit of a bobble, isn't it? The graph makes it look fairly dramatic, but the end result is only a few hundred dollars. I wonder if the Index changed or something? Here (an old Boglehead's Wiki?) is a page, which links the 2002 annual report, discussing what happened in 2002. It is near the b...
by red5
Tue Feb 10, 2015 8:57 am
 
Forum: Investing - Theory, News & General
Topic: Performance of TSP funds
Replies: 39
Views: 2052

Re: Performance of TSP funds

...It also turns out the admiral and investor shares VBTLX and VBMFX don't track well from the 2002 start of the graph to about Feb 2004, for whatever reason (the investor shares have much better performance). After that they maintain the tight tracking with a slight edge to the admiral shares, as ...
by red5
Tue Feb 10, 2015 5:49 am
 
Forum: Investing - Theory, News & General
Topic: Performance of TSP funds
Replies: 39
Views: 2052

Re: Performance of TSP funds

Here's some revised graphs... Should you be comparing F fund to VBTLX and not VBLTX? Never mind, I see your statement. These look more like apples to apples comparisons now (and the F fund will when you update it with the correct fund). Before it was more like an apple to a caramel apple comparison...
by red5
Mon Feb 09, 2015 2:17 pm
 
Forum: Investing - Theory, News & General
Topic: Performance of TSP funds
Replies: 39
Views: 2052

Re: Performance of TSP funds

Okay, I am a little red faced. What was I thinking? Not sure why I was comparing VTSMX and C fund, probably because the OP did and I went along with it. VFIAX would be a much better comparison. Since June 2, 2003, C fund is ahead 8.90% to 8.88% (so basically a wash). I am not sure where to get histo...
by red5
Mon Feb 09, 2015 1:15 pm
 
Forum: Investing - Theory, News & General
Topic: Performance of TSP funds
Replies: 39
Views: 2052

Re: Performance of TSP funds

I freely acknowledged that the comparison funds I picked might not be the best match, but they aren't that far off the mark. Given the comparisons I picked, I don't think there is much of an opening for "operator error" in generating the graphs if that's what you're asking. But I can doub...
by red5
Mon Feb 09, 2015 11:47 am
 
Forum: Investing - Theory, News & General
Topic: Performance of TSP funds
Replies: 39
Views: 2052
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