Search found 2310 matches

Go to advanced search

by rkhusky
Thu May 28, 2015 12:53 pm
Forum: Investing - Theory, News & General
Topic: At what point would you want "capped" indices?
Replies: 17
Views: 1236

Re: At what point would you want "capped" indices?

Would it be better if Apple split into computer hardware, computer software, music, phone, and watch companies, such that each had a smaller market share? Would you want to buy 5x more of each because you are following an equal weight index?
by rkhusky
Wed May 27, 2015 8:28 pm
Forum: Personal Finance (Not Investing)
Topic: Comparing two common Social Security claiming strategies for married couples
Replies: 37
Views: 3216

Re: Comparing two common Social Security claiming strategies for married couples

ralph124cf wrote:SS tries to be actuarialy neutral on this across the broad population base.

SS tries to be actuarially neutral for a single person. Couples get an actuarial bonus.
by rkhusky
Wed May 27, 2015 8:13 pm
Forum: Investing - Theory, News & General
Topic: Market Capitalization Flaw in Index Funds
Replies: 11
Views: 1062

Re: Market Capitalization Flaw in Index Funds

Market cap weighting is very efficient as well. Once the index is set up, you do not need to buy/sell stocks because the price changes, unlike any other form of weighting. If you were to set the index weighting between Apple Computer (Market Cap = 760.72B) and Hexcel Corp. (Market Cap = 4.83B), what...
by rkhusky
Tue May 26, 2015 8:10 pm
Forum: Investing - Help with Personal Investments
Topic: IRA vs 401(k) for flexible RMD, reason to roll over
Replies: 7
Views: 402

Re: IRA vs 401(k) for flexible RMD, reason to roll over

SpideyIndexer wrote: I think the answer is "no" since I can rebalance inside the 401(k) with no tax consequences, but am a missing anything?


That's right, unless you have any Roth 401K contributions - Roth 401K requires RMD, Roth IRA does not. If it is all Traditional, you are fine.
by rkhusky
Tue May 26, 2015 6:18 pm
Forum: Personal Finance (Not Investing)
Topic: IRS Transcript page hacked
Replies: 19
Views: 933

IRS Transcript page hacked

News that the IRS page where one can get old returns was hacked: http://abcnews.go.com/Politics/wireStory/apnewsbreak-irs-thieves-stole-tax-info-100000-31317464 I followed a tip a few months ago that one should set up an account there to block access. The page is off-line now: http://www.irs.gov/Ind...
by rkhusky
Mon May 25, 2015 6:18 am
Forum: Investing - Theory, News & General
Topic: Stemikger "Volatility is far from synonymous with risk."
Replies: 89
Views: 4686

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

The problem with just using volatility or standard deviation to define risk is that you are leaving out a lot of information - frequency, phase, time scales, etc. I like to know not only how much a particular investment typically drops (rises), but also how long it typically stays down (up). That is...
by rkhusky
Fri May 22, 2015 9:28 pm
Forum: Investing - Help with Personal Investments
Topic: Am I crazy to have this asset allocation?
Replies: 21
Views: 3010

Re: Am I crazy to have this asset allocation?

Also with the Bridgeway Microcap Fund, I am getting exposure to the smallest cap stocks (RZV and Bridgeway Omni Small Value similarly have higher ERs), and according to Swedroe I should be rewarded for that. There are no guarantees in investing. Taking higher risk means you typically have a chance ...
by rkhusky
Fri May 22, 2015 9:16 pm
Forum: Investing - Help with Personal Investments
Topic: 529 before conceiving a child?
Replies: 12
Views: 778

Re: 529 before conceiving a child?

I'm not sure you can definitely know you will have children. There are a lot of people with infertility issues.

I would only consider a 529 after maxing out all other retirement accounts.

Keeping money in taxable for a few years is also not that bad.
by rkhusky
Fri May 22, 2015 11:18 am
Forum: Investing - Help with Personal Investments
Topic: Am I crazy to have this asset allocation?
Replies: 21
Views: 3010

Re: Am I crazy to have this asset allocation?

The average ER is roughly .78. I wouldn't pay that much, when I could get a 3 Fund portfolio at Vanguard for around 0.10%. You could even add some significant tilts to small value and emerging markets for not much more. It would be interesting to see how your portfolio has done in the past compared...
by rkhusky
Fri May 22, 2015 7:20 am
Forum: Investing - Help with Personal Investments
Topic: Am I crazy to have this asset allocation?
Replies: 21
Views: 3010

Re: Am I crazy to have this asset allocation?

What are the ER's for those funds? Or what is the weighted average ER?
by rkhusky
Wed May 20, 2015 1:31 pm
Forum: Investing - Help with Personal Investments
Topic: Any of these worth keeping?
Replies: 9
Views: 930

Re: Any of these worth keeping?

Is there an "international muni" version ("sovereign bonds"?)? I'd wager that there are, but I seriously doubt they would be free of US tax. US muni's are only tax free because the federal government wants to encourage people to invest in local governments. In theory, they could...
by rkhusky
Wed May 20, 2015 1:19 pm
Forum: Personal Finance (Not Investing)
Topic: Estate Tax (WA State)
Replies: 9
Views: 659

Re: Estate Tax (WA State)

Live in WA for 5 months (June - October) and other states for the rest of the time.
by rkhusky
Wed May 20, 2015 1:16 pm
Forum: Investing - Help with Personal Investments
Topic: Thrift Savings Plan Portfolio Review - 30 yr old
Replies: 12
Views: 938

Re: Thrift Savings Plan Portfolio Review - 30 yr old

I say I'm not impressed with the I fund (EAFE) because of the long run real returns are only 4.4% vs 6.5% for U.S. stocks. The current returns are all influenced by what has happened recently. You need to look at different start and end dates to see what the performance has been. For example, look ...
by rkhusky
Wed May 20, 2015 11:22 am
Forum: Investing - Theory, News & General
Topic: Study Recommends Keeping Status Quo for TSP Fund Offerings
Replies: 26
Views: 2247

Re: Study Recommends Keeping Status Quo for TSP Fund Offerin

MnD wrote:Under-weighting international is not doing the typical feds portfolio any favors this year at least.


Perhaps, due to the shortcomings of the I Fund, many Feds are getting their Int'l through a taxable account, an IRA or a spouse's 401K.
by rkhusky
Wed May 20, 2015 11:15 am
Forum: Investing - Help with Personal Investments
Topic: Thrift Savings Plan Portfolio Review - 30 yr old
Replies: 12
Views: 938

Re: Thrift Savings Plan Portfolio Review - 30 yr old

I'm willing to take on as much risk as possible to achieve greater returns over the long run. The above statement is mistaken. You have no guarantee that taking on more risk will give you greater returns. You may have a greater probability of higher returns. But you also have a greater probability ...
by rkhusky
Wed May 20, 2015 11:04 am
Forum: Investing - Help with Personal Investments
Topic: Any of these worth keeping?
Replies: 9
Views: 930

Re: Any of these worth keeping?

Is there an "international muni" version ("sovereign bonds"?)? I'd wager that there are, but I seriously doubt they would be free of US tax. US muni's are only tax free because the federal government wants to encourage people to invest in local governments. In theory, they could...
by rkhusky
Tue May 19, 2015 12:28 pm
Forum: Investing - Theory, News & General
Topic: Supreme Court rules in favor of 401k participants who object to high fees
Replies: 33
Views: 3447

Re: Supreme Court rules in favor of 401k participants who object to high fees

Don't think Vanguard funds are immune. Invest in an emerging market index fund that goes down 50%? Who cares if it tracked the index, I'm sure at least one lawyer (and a majority of jurors/investors) could view something that goes down 50% as imprudent. An EM index fund could be imprudent for an 80...
by rkhusky
Tue May 19, 2015 6:49 am
Forum: Investing - Help with Personal Investments
Topic: Thrift Savings Plan and three-fund portfolio...
Replies: 22
Views: 1480

Re: Thrift Savings Plan and three-fund portfolio...

If you do decide to go with a G Fund heavy portfolio, just remember that the government can change the rules at any time. There has been some recent scuttlebutt that they may make the return of the G Fund more commensurate with the risk. So, while you should plan based on current rules, it is pruden...
by rkhusky
Mon May 18, 2015 9:31 am
Forum: Investing - Help with Personal Investments
Topic: Thrift Savings Plan and three-fund portfolio...
Replies: 22
Views: 1480

Re: Thrift Savings Plan and three-fund portfolio...

The board would need more information on your holdings, especially the taxable holdings. Also, do you intend to leave your funds in the TSP or move some or all to an IRA? The Bogleheads Wiki also has information on the TSP (http://www.bogleheads.org/wiki/Thrift_Savings_Plan) and it is quite popular ...
by rkhusky
Fri May 15, 2015 7:49 am
Forum: Investing - Help with Personal Investments
Topic: Two purchases in one day. One tax lot or two?
Replies: 17
Views: 1389

Re: Two purchases in one day. One tax lot or two?

Interesting. So it is possibly a wash sale if purchases were made at separate times and they have different prices. Now, for mutual funds, it is priced only after market close and all the shares are of the same price... To state the obvious, there has to be a sale in order to have a wash sale - mak...
by rkhusky
Thu May 14, 2015 10:51 am
Forum: Personal Consumer Issues
Topic: Auto-braking systems in cars - experiences?
Replies: 67
Views: 2739

Re: Auto-braking systems in cars - experiences?

Anyone with auto-braking tested it with a cardboard box or a paper or plastic bag? Or does it just respond to walls and vehicles?
by rkhusky
Thu May 14, 2015 7:06 am
Forum: Investing - Theory, News & General
Topic: Why is the nasdaq higher than the S&P500 index?
Replies: 8
Views: 1036

Re: Why is the nasdaq higher than the S&P500 index?

The relative numerical values of the indexes are meaningless. One could have started at 1 and another could have started at 1000. This is also true of mutual funds - the NAV itself is meaningless in an absolute sense. In fact, Vanguards different share classes, Investor and Admiral, often have wildl...
by rkhusky
Thu May 14, 2015 6:45 am
Forum: Investing - Help with Personal Investments
Topic: Does 401K participation affect Roth IRA participation?
Replies: 8
Views: 882

Re: Does 401K participation affect Roth IRA participation?

Why did you hire the CPA? If it was for tax advice or financial planning, then they are clearly lacking. If it was to audit your accounts or to do your bookkeeping, and you asked the question informally, then you might need to give them a break.
by rkhusky
Tue May 12, 2015 8:09 pm
Forum: Personal Finance (Not Investing)
Topic: Taxes on renting a room in my home to a friend
Replies: 30
Views: 1778

Re: Taxes on renting a room in my home to a friend

The "wishy-washiness" comes from the gray area between a formal barter exchange ("A barter exchange is an organization whose members contract with each other (or with the barter exchange) to exchange property or services. ") and the "informal exchange of similar services on...
by rkhusky
Tue May 12, 2015 3:50 pm
Forum: Personal Finance (Not Investing)
Topic: Taxes on renting a room in my home to a friend
Replies: 30
Views: 1778

Re: Taxes on renting a room in my home to a friend

Barter may work. Instead of rent, take groceries, repairs, car rides/sharing, etc. Sometimes you can enter into non cash agreements to avoid the bureaucracy: http://www.wsj.com/articles/new-yorkers-trade-services-for-free-rent-1412988217 but not always: http://www.irs.gov/taxtopics/tc420.html I did...
by rkhusky
Tue May 12, 2015 12:28 pm
Forum: Investing - Help with Personal Investments
Topic: 529 plans- Are they part of your overall A.A?
Replies: 22
Views: 1115

Re: 529 plans- Are they part of your overall A.A?

No, because the time frames when the money is needed is so different. Even if retirement and college funding occur at the same starting time, retirement typically covers 20+ years, while college typically covers 4 years. With retirement, you can wait out a dip in the market, while you can't really w...
by rkhusky
Tue May 12, 2015 6:28 am
Forum: Personal Consumer Issues
Topic: transferring files from a PC to a Mac
Replies: 5
Views: 363

Re: transferring files from a PC to a Mac

Macs have been able to read PC disks for years (had to, due to Windows market share). They can even run Windows.
by rkhusky
Mon May 11, 2015 11:00 am
Forum: Forum Issues and Administration
Topic: Seach posts gone? [Searching for old posts]
Replies: 6
Views: 470

Re: Seach posts gone?

Are you looking for: search.php?search_id=egosearch

There is a link to View Your Posts on the top left side of https://www.bogleheads.org under Bogleheads Forum
by rkhusky
Mon May 11, 2015 10:53 am
Forum: Investing - Theory, News & General
Topic: Think you can profit on a hot stock tip?
Replies: 1
Views: 470

Think you can profit on a hot stock tip?

You now have to compete with automated algorithms trolling the Internet for news, which can understand the text and execute a trade within a second: http://www.slate.com/articles/business/moneybox/2015/04/bot_makes_2_4_million_reading_twitter_meet_the_guy_it_cost_a_fortune.html Best to buy a few div...
by rkhusky
Sat May 09, 2015 7:09 pm
Forum: Investing - Help with Personal Investments
Topic: Help with wife's 401k
Replies: 9
Views: 1008

Re: Help with wife's 401k

Do those target date funds have the lowest ER of all choices in 401K? Are you maxing your Roth IRA's? What is your marginal tax rate? Does your wife plan to stay with the company for a long time?

Even though the 1 year ER cost is somewhat small, you get hit with it every year.
by rkhusky
Fri May 08, 2015 6:20 pm
Forum: Investing - Theory, News & General
Topic: Help me understand why maxing out Roth TSP is better than Traditional
Replies: 23
Views: 1406

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

If you have kids and are in the child tax credit phaseout region, then you can add an additional 5% to your marginal rate. Another reason to use Traditional.
by rkhusky
Fri May 08, 2015 2:37 pm
Forum: Investing - Theory, News & General
Topic: Help me understand why maxing out Roth TSP is better than Traditional
Replies: 23
Views: 1406

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

How is $18,000 in my Roth TSP better than $18,000 in a Traditional TSP + an additional $5,040 in the bank? Because of the tax drag of putting your tax savings into a taxable account. If you instead put the tax savings into a Roth IRA, they are about equal, assuming the same tax rate in retirement, ...
by rkhusky
Thu May 07, 2015 7:01 am
Forum: Investing - Help with Personal Investments
Topic: Need Help With Roth
Replies: 11
Views: 600

Re: Need Help With Roth

Is this the correct way to look at if a FA is worth it? Let's assume the target date fund returns 5% each year. The FA picks return 6.2% each year. If the advisor fee is 1.1%... wouldn't the FA fee be worth it? If the FA would guarantee that they would beat the TD fund every year, you would be gold...
by rkhusky
Thu May 07, 2015 6:58 am
Forum: Investing - Help with Personal Investments
Topic: Need Help With Roth
Replies: 11
Views: 600

Re: Need Help With Roth

Fidelity Freedom Index 2045 (FIOFX) has about 90% stock and an ER of 0.16%. See https://nb.fidelity.com/public/workplac ... mmary/2240
by rkhusky
Wed May 06, 2015 8:08 pm
Forum: Personal Finance (Not Investing)
Topic: Any circumstances when a home seller gives a buyer a check
Replies: 16
Views: 1722

Re: Any circumstances when a home seller gives a buyer a check

If a seller wants to remain in a house after closing, they usually have to pay "rent", which is itemized in the contract. If their stay ends up being longer than was anticipated, they would have to write a check to the buyer. Not the same as the OP example, but it is a possible circumstance.
by rkhusky
Wed May 06, 2015 8:03 pm
Forum: Investing - Help with Personal Investments
Topic: Need Help With Roth
Replies: 11
Views: 600

Re: Need Help With Roth

If you don't want to deal with learning about investing and are thinking of using a FA because of it, put the money in a Target Date Fund. Keep in mind that the date in the fund title doesn't tell the whole story. Look at the percentage of stocks in the fund and use funds in your 401K and your Roth ...
by rkhusky
Wed May 06, 2015 7:04 am
Forum: Investing - Help with Personal Investments
Topic: Lions, tigers, and Bears and bulls, Oh,My!
Replies: 3
Views: 843

Re: Lions, tigers, and Bears and bulls, Oh,My!

Higher returns generally means more risk (note that higher risk does not guarantee higher returns). You have to find the knee in the curve, where you can expect to get acceptable returns while taking on acceptable risk. The main driver of risk is the percentages of stocks and bonds in your portfolio...
by rkhusky
Wed May 06, 2015 6:55 am
Forum: Investing - Help with Personal Investments
Topic: Diversifying beyond Vanguard Target Date Fund
Replies: 45
Views: 4410

Re: Diversifying beyond Vanguard Target Date Fund

Target date funds also do not include municipal bonds (tax exempt), which are appropriate for a taxable account, especially if one is in a higher tax bracket. Probably not worth pursuing if one is in the 15% bracket.
by rkhusky
Tue May 05, 2015 9:07 am
Forum: Investing - Help with Personal Investments
Topic: Roth vs Traditional 401k
Replies: 15
Views: 731

Re: Roth vs Traditional 401k

I like the second table at http://www.bogleheads.org/wiki/Non-deductible_traditional_IRA to see the implications of different types of accounts. You want to withdraw from the Roth last since it grows tax free. In retirement you can move money from a 401K to a Roth IRA, but you can't move money from ...
by rkhusky
Tue May 05, 2015 8:46 am
Forum: Personal Consumer Issues
Topic: Florida Vacation
Replies: 28
Views: 1746

Re: Florida Vacation

If you are getting your rental car in Orlando, avoid refueling at the first gas station north of the airport (SunCoast), which is notorious for overcharging for gas ($5/gal). They snare foreign tourists and those not paying attention (like me). Less than a mile north, gas is normal at $2.50/gal.
by rkhusky
Mon May 04, 2015 11:51 am
Forum: Investing - Theory, News & General
Topic: "Don't invest in something you don't understand."
Replies: 55
Views: 3471

Re: "Don't invest in something you don't understand."

Even the simplified model, such as a random walk, is beyond the comprehension of many people, but what they can still understand (hopefully) is a very simple set of instructions about how to invest, even if they can't understand why. But that comes back to my earlier point, that then people have to...
by rkhusky
Mon May 04, 2015 8:42 am
Forum: Investing - Theory, News & General
Topic: "Don't invest in something you don't understand."
Replies: 55
Views: 3471

Re: "Don't invest in something you don't understand."

As an example, what would you need to know before investing in Vanguard's Total Stock Market? It holds most of the investable stocks in the U.S. (3796 stocks). It holds amounts of each stock in proportion to the stock's share of the market - more of large companies, less of small companies. Admiral ...
by rkhusky
Fri May 01, 2015 3:06 pm
Forum: Investing - Theory, News & General
Topic: the missing value premium
Replies: 34
Views: 3347

Re: the missing value premium

Another piece of evidence that segments of the market can be down for extended periods of time is that Emerging Markets haven't returned to their highs from 8 years ago.
by rkhusky
Fri May 01, 2015 3:02 pm
Forum: Investing - Theory, News & General
Topic: Total Stock Market Dividends (VTI)
Replies: 9
Views: 937

Re: Total Stock Market Dividends (VTI)

Which is more useful, the absolute size of the dividend or the dividend/NAV?
by rkhusky
Thu Apr 30, 2015 2:18 pm
Forum: Investing - Theory, News & General
Topic: Asset allocation during RMD years-unneeded but required wd's
Replies: 13
Views: 1154

Re: Asset allocation during RMD years

Keep in mind that you cannot just withdraw from the G Fund (unless account is 100% G), it all comes out proportional. After your RMD is withdrawn, you will need to rebalance to get your G Fund balance back to where you want it.
by rkhusky
Thu Apr 30, 2015 12:08 pm
Forum: Investing - Theory, News & General
Topic: Anyone have an asset allocation not based on percentages?
Replies: 26
Views: 2414

Re: Anyone have an asset allocation not based on percentages

I was thinking 5x annual expenses in fixed income is pretty conservative, ... 5x living expenses in bonds is not that conservative, 25x is relatively conservative, 35x is very conservative. And I think, rather than annual expenses, it should be residual annual expenses, i.e. after pension and SS. A...
by rkhusky
Thu Apr 30, 2015 11:46 am
Forum: Investing - Help with Personal Investments
Topic: Contributing to Roth & Traditional IRA
Replies: 11
Views: 400

Re: Contributing to Roth & Traditional IRA

I'm not seeing any International in your 401K holdings. Perhaps you should use the IRA for Int'l and some Bonds. To figure out Roth vs. Traditional you have to do some prognosticating. Do you plan to get married? Do you expect your salary to increase substantially over the next 20-30 years? What do ...
by rkhusky
Wed Apr 29, 2015 2:11 pm
Forum: Personal Finance (Not Investing)
Topic: TSP Contribution Limit
Replies: 7
Views: 611

Re: TSP Contribution Limit

baw703916 wrote:Note that depending where in the government you work, there may be 27 pay periods in 2015, rather than the usual 26.


Need to have received a paycheck on Friday, Jan 2.
by rkhusky
Tue Apr 28, 2015 3:17 pm
Forum: Investing - Theory, News & General
Topic: Why Does My Muni Bond Fund Frequently Not Change Price?
Replies: 5
Views: 817

Re: Why Does My Muni Bond Fund Frequently Not Change Price?

Short-term high-quality bond funds change very little day-to-day. Long-term low-quality bond funds change more.
by rkhusky
Tue Apr 28, 2015 6:47 am
Forum: Investing - Help with Personal Investments
Topic: Roth 401K vs. Traditional 401K
Replies: 3
Views: 430

Re: Roth 401K vs. Traditional 401K

You really need to find out what your expense ratios are. Fidelity has some low cost offerings, but they also have some expensive ones. To figure out Roth vs. Traditional you have to do some prognosticating. What do you expect your pension and SS to be? When will you start collecting? What do you ex...

Go to advanced search