Search found 2438 matches

by rkhusky
Fri Jul 31, 2015 11:23 am
Forum: Personal Finance (Not Investing)
Topic: Terrible Index Funds
Replies: 9
Views: 1272

Re: Terrible Index Funds

Another question: Why would employers select this for their employees' 401K plans? Employers have a fiduciary responsibility to select funds in the best interest of their employees. It seems patently obvious that a 0.85 ER for and SP 500 Index is very much in the disinterest of investors. Because t...
by rkhusky
Fri Jul 31, 2015 11:05 am
Forum: Investing - Theory, News & General
Topic: Interesting statement in Ellis's Wining the Loser's Game
Replies: 2
Views: 235

Re: Interesting statement in Ellis's Wining the Loser's Game

What is the definition of "good diversification"?
by rkhusky
Fri Jul 31, 2015 6:42 am
Forum: Investing - Help with Personal Investments
Topic: t401k vs. r401k vs. tIRA vs. rIRA
Replies: 7
Views: 373

Re: t401k vs. r401k vs. tIRA vs. rIRA

Given my line of work and salary projections, I strongly believe that my salary will be higher when I retire than it is right now. What matters most is whether you will be in a higher tax bracket in retirement than what you are in right now, which in turn depends on your expenses in retirement, how...
by rkhusky
Wed Jul 29, 2015 1:27 pm
Forum: Investing - Theory, News & General
Topic: TSP May Expand Options
Replies: 20
Views: 1479

Re: TSP May Expand Options

One problem with the Roth 401K (or TSP) is that there are RMD's. So, eventually you may want to move your Roth 401K to a Roth IRA, which doesn't have an RMD (currently).
by rkhusky
Wed Jul 22, 2015 12:50 pm
Forum: Personal Finance (Not Investing)
Topic: Should I consider Social Security Benefits as Assets
Replies: 44
Views: 2785

Re: Should I consider Social Security Benefits as Assets

thus I think I need to take this into consideration when I think about asset allocation. You do not need to consider SS or pension when thinking about asset allocation. You can consider them when determining what your expenses will be in retirement and how much you will need to draw from your retir...
by rkhusky
Tue Jul 21, 2015 12:49 pm
Forum: Investing - Help with Personal Investments
Topic: TSP & Exchange Vanguard Bonds for Total Stock Market Shares
Replies: 6
Views: 353

Re: TSP & Exchange Vanguard Bonds for Total Stock Market Shares

The actual mechanics are no problem. But you should realize that you are exchanging apples for oranges. Total Bond and Total Int'l Bond are not the same as the G Fund. The latter is much safer and will likely earn a little less on average than the former (G Fund will never go down and Total Bond can...
by rkhusky
Tue Jul 21, 2015 12:40 pm
Forum: Personal Finance (Not Investing)
Topic: How do people afford children with a SAHS?
Replies: 183
Views: 10596

Re: How do people afford children with a SAHS?

I know families with one wage-earner who have 10+ kids. Perhaps there are economies of scale. You decide which is more important - children or stuff. Are you privy to their financial statements? You can theoretically have 100+ kids, but who is going to pay for feeding them, clothing them, etc. - th...
by rkhusky
Tue Jul 21, 2015 10:07 am
Forum: Investing - Help with Personal Investments
Topic: 1 year old investor [Investing less than 1 year]
Replies: 4
Views: 377

Re: 1 year old investor

For a one year old, you type really well.
by rkhusky
Tue Jul 21, 2015 9:34 am
Forum: Personal Finance (Not Investing)
Topic: How do people afford children with a SAHS?
Replies: 183
Views: 10596

Re: How do people afford children with a SAHS?

I know families with one wage-earner who have 10+ kids. Perhaps there are economies of scale. You decide which is more important - children or stuff.
by rkhusky
Tue Jul 21, 2015 9:30 am
Forum: Investing - Help with Personal Investments
Topic: How would you rebalance when your fixed income investments are not liquid?
Replies: 15
Views: 547

Re: How would you rebalance when your fixed income investments are not liquid?

rca1824 wrote:I do want to rebalance into bonds when equities become overvalued and bonds become undervalued like during 2000. So that year taught me that a static 100% equity portfolio is far from optimal.


Problem is, it is really hard to pinpoint this in time, except in hindsight.
by rkhusky
Fri Jul 17, 2015 3:35 pm
Forum: Investing - Help with Personal Investments
Topic: Approximating VTSMX and general allocation questions in 401k
Replies: 12
Views: 647

Re: Approximating VTSMX and general allocation questions in 401k

Making a plan and sticking to it is important in investing. If you decide that you don't want int'l stocks, make sure that you can handle it when they are going through the roof and US stocks are lagging. You don't want to all of a sudden decide that you want to get on the bandwagon and buy right at...
by rkhusky
Fri Jul 17, 2015 1:47 pm
Forum: Investing - Help with Personal Investments
Topic: Approximating VTSMX and general allocation questions in 401k
Replies: 12
Views: 647

Re: Approximating VTSMX and general allocation questions in 401k

BlackRock LifePath Index Fund! This is a good suggestion, but I can't find any stock/bond percentages for any of the target dates. My 401k site provides a document comparing the BlackRock 2060 fund with the Dow Jones 2050 fund and the 2060 hasn't even existed for a year. The link to the document on...
by rkhusky
Fri Jul 17, 2015 10:57 am
Forum: Investing - Help with Personal Investments
Topic: Approximating VTSMX and general allocation questions in 401k
Replies: 12
Views: 647

Re: Approximating VTSMX and general allocation questions in 401k

. I just look up the black rock Life Path funds and they are a bit complicated to me in their holdings :) Way more holdings than Vanguard's all in on funds. Yes. It is not clear to me why they have two Int'l funds and two small cap funds. They also have some extra real estate and also TIP bonds. Th...
by rkhusky
Fri Jul 17, 2015 10:47 am
Forum: Investing - Help with Personal Investments
Topic: 403b Choices
Replies: 29
Views: 1159

Re: 403b Choices

I think it depends on what you need to hold in this account. If you want broad coverage (all of the US, foreign, and bonds) then Valic is the winner. If you just need 500 index and a bond, Metlife will do the trick and is a tiny bit cheaper. Valic has a good small cap (and mid cap) so you can appro...
by rkhusky
Fri Jul 17, 2015 10:20 am
Forum: Personal Finance (Not Investing)
Topic: Convert IRA to Roth While Working to Save on Taxes
Replies: 15
Views: 1128

Re: Convert IRA to Roth While Working to Save on Taxes

By 40% bracket, do you mean 39.6% federal? Or 40% due to increased SS taxation? Or some other phaseout? 39.6%. I just rounded it up. In order to have RMD's that put you in the highest bracket, you need a portfolio in excess of $12M, unless you have some other source of income. Presumably you are ch...
by rkhusky
Fri Jul 17, 2015 6:48 am
Forum: Investing - Help with Personal Investments
Topic: Approximating VTSMX and general allocation questions in 401k
Replies: 12
Views: 647

Re: Approximating VTSMX and general allocation questions in 401k

Find the BlackRock LifePath Index Fund that has the stock/bond ratio that you want and put everything in that (e.g. 2030 or 2035). They handle all the rebalancing for you and also gradually increase the bond allocation as you get closer to retirement, all at a really low cost. And don't worry about ...
by rkhusky
Fri Jul 17, 2015 6:31 am
Forum: Personal Finance (Not Investing)
Topic: Convert IRA to Roth While Working to Save on Taxes
Replies: 15
Views: 1128

Re: Convert IRA to Roth While Working to Save on Taxes

TravelforFun wrote:I plan to work until 70 and when I retire, RMD will kick in almost immediately. The first few years of RMD withdrawals will put us squarely in the 40% bracket. This is not good!


By 40% bracket, do you mean 39.6% federal? Or 40% due to increased SS taxation? Or some other phaseout?
by rkhusky
Thu Jul 16, 2015 12:21 pm
Forum: Investing - Help with Personal Investments
Topic: Investing in post tax 401k
Replies: 9
Views: 523

Re: Investing in post tax 401k

Withdrawals from the 401 would be taxed as income, rather than cap gains. This page shows that non-deductible IRA (which should be the same as after tax 401K) is worse than taxable: http://www.bogleheads.org/wiki/Non-dedu ... tional_IRA.
by rkhusky
Thu Jul 16, 2015 11:08 am
Forum: Investing - Help with Personal Investments
Topic: 403b Choices
Replies: 29
Views: 1159

Re: 403b Choices

Make sure you take into account the admin fee listed at the bottom too. A combination of Fidelity 500 Index, Vanguard mid, Vanguard small, Fidelity Int'l, and Dreyfus Bond look okay. Alternatively, you could put your bonds into an IRA, if the ER concerns you. You can approximation Total Stock Market...
by rkhusky
Thu Jul 16, 2015 10:48 am
Forum: Investing - Help with Personal Investments
Topic: 401k bond fund: active intermediate or indexed long?
Replies: 6
Views: 300

Re: 401k bond fund: active intermediate or indexed long?

Do the holdings of the intermediate bond fund look like its benchmark? Does it hold 1000's of bonds?
by rkhusky
Thu Jul 16, 2015 10:36 am
Forum: Investing - Theory, News & General
Topic: Where do you put your cash?
Replies: 64
Views: 7816

Re: Where do you put your cash?

Savings/checking to pay bills and launder my paycheck before sending to Vanguard. I use a taxable MM fund at Vanguard to launder my cash before sending to other investments. Short and intermediate bond funds for emergency fund, which is counted in my AA. I have been thinking recently that perhaps I ...
by rkhusky
Thu Jul 16, 2015 8:55 am
Forum: Investing - Theory, News & General
Topic: Confused about target date funds
Replies: 8
Views: 868

Re: Confused about target date funds

I would not use a money market in a Roth. Put what you expect to have the greatest return in the Roth, since you won't have to pay taxes on any gains. There is one poster here who does not want to lose money in his Roth, but I don't think even he puts his Roth into a money market or CD's. A common ...
by rkhusky
Thu Jul 16, 2015 7:11 am
Forum: Investing - Theory, News & General
Topic: Confused about target date funds
Replies: 8
Views: 868

Re: Confused about target date funds

I would not use a money market in a Roth. Put what you expect to have the greatest return in the Roth, since you won't have to pay taxes on any gains. There is one poster here who does not want to lose money in his Roth, but I don't think even he puts his Roth into a money market or CD's. A common 3...
by rkhusky
Thu Jul 16, 2015 7:02 am
Forum: Investing - Theory, News & General
Topic: Why Rational People are Risk Averse
Replies: 33
Views: 3638

Re: Why Rational People are Risk Averse

bertilak wrote:Also consider this: Would you take the risk of investing if the expected return was zero? Most people would not.

I don't know. A lot of people go to casinos, where the expected return is less than zero.
by rkhusky
Wed Jul 15, 2015 12:45 pm
Forum: Investing - Theory, News & General
Topic: Frontier Markets - 5% of portfolio?
Replies: 51
Views: 3240

Re: Frontier Markets - 5% of portfolio?

livesoft wrote:
ajacobs6 wrote:This ETF could be worth considering.

No, absolutely not, unless you need a loser to practice some tax-loss harvesting


Sounds like a value play to me - P/E=11.4, P/B=1.6

Half is in financial services - risky?

Morningstar has 25% classified as developed (Kuwait?).
by rkhusky
Wed Jul 15, 2015 12:38 pm
Forum: Investing - Help with Personal Investments
Topic: Rebalancing & LT Capital Gains
Replies: 3
Views: 223

Re: Rebalancing & LT Capital Gains

Sell shares that have a loss. Or a combination of losses/gains that results in $0 tax.
by rkhusky
Wed Jul 15, 2015 7:20 am
Forum: Investing - Help with Personal Investments
Topic: New Target Date funds for employee accounts?
Replies: 3
Views: 345

Re: New Target Date funds for employee accounts?

When I Google "Target Retirement 2050 Trust Select", I get 2 links, one to this thread and one to a vanguard document for a particular 401K plan. Perhaps the latter document has a typo? (there is reference to the Plus version as a default choice in the same document)
by rkhusky
Wed Jul 15, 2015 6:43 am
Forum: Personal Finance (Not Investing)
Topic: I tipped 15% and got a dirty look
Replies: 129
Views: 6815

Re: I tipped 15% and got a dirty look

russelljohnson wrote:15% for acceptable service
0%-15% for bad service
15% - 20% for exceptional service

90% of the time, I receive acceptable service.

+1
by rkhusky
Tue Jul 14, 2015 12:28 pm
Forum: Investing - Theory, News & General
Topic: Shouldn't riskier stocks have better returns?
Replies: 20
Views: 1461

Re: Shouldn't riskier stocks have better returns?

Take a look at Apple's 10-Q SEC filing sometime. Apple is loaded with cash, but is also loaded with debt. And this is recent debt. I am sure there is some financial advantage for carrying debt rather than spending their cash. I've heard that their cash is overseas, hiding from the US taxman, and, a...
by rkhusky
Tue Jul 14, 2015 10:49 am
Forum: Personal Finance (Not Investing)
Topic: IRS tax forms
Replies: 25
Views: 750

Re: IRS tax forms

Yep, that’s what I do. I download forms from IRS site, fill them in, print and mail. Additionally, I run my numbers through TurboTax TaxCaster to verify results before mailing. That's what I want to do, thank you, I don't mind filling in online, but would rather mail the old-fashioned way. You are ...
by rkhusky
Tue Jul 14, 2015 7:29 am
Forum: Investing - Theory, News & General
Topic: Shouldn't riskier stocks have better returns?
Replies: 20
Views: 1461

Re: Shouldn't riskier stocks have better returns?

Higher risk does not necessarily mean higher return. But rather, investors should demand higher return for investing in higher risk investments. Higher risk means that you may or may not see the higher return, and your chance of not seeing the higher return increases with the higher risk.
by rkhusky
Mon Jul 13, 2015 3:14 pm
Forum: Investing - Help with Personal Investments
Topic: If I am 25 years from retirement
Replies: 20
Views: 1471

Re: If I am 25 years from retirement

If you are about 40 years old, then the "age in bonds rule" would have you at 60/40, which is probably the most conservative that folk recommend. If you are finding that 90% stocks is too much for you, there is no problem switching to a TR fund that is now 70-80% stock. Just don't switch ...
by rkhusky
Mon Jul 13, 2015 2:34 pm
Forum: Investing - Help with Personal Investments
Topic: If I am 25 years from retirement
Replies: 20
Views: 1471

Re: If I am 25 years from retirement

If you are about 40 years old, then the "age in bonds rule" would have you at 60/40, which is probably the most conservative that folk recommend. If you are finding that 90% stocks is too much for you, there is no problem switching to a TR fund that is now 70-80% stock. Just don't switch b...
by rkhusky
Mon Jul 13, 2015 1:14 pm
Forum: Investing - Help with Personal Investments
Topic: Vanguard 401k help
Replies: 8
Views: 517

Re: Vanguard 401k help

Yes. Traditional 401K seems more suitable. There are no income limits on Traditional IRA contributions, although there are income limits on deducting the contributions on your taxes. There is virtually no cost to convert a non-deductible Traditional IRA to a Roth after a short period of time. Hence ...
by rkhusky
Mon Jul 13, 2015 12:13 pm
Forum: Investing - Help with Personal Investments
Topic: Help with allocation?
Replies: 5
Views: 389

Re: Help with allocation?

It would be useful to know the expense ratios (ER) of the funds that you have. It is best to try and achieve the greatest diversification with the lowest cost with the simplest portfolio. Sometimes that is difficult to do in 401K due to limited fund choices. Wellington is not a good choice for a tax...
by rkhusky
Mon Jul 13, 2015 11:01 am
Forum: Investing - Help with Personal Investments
Topic: Vanguard 401k help
Replies: 8
Views: 517

Re: Vanguard 401k help

Frankly, I would just put everything into Target Retirement 2035, both 401k and IRA. You get 1000's of US and Int'l stocks and 1000's of US and Int'l bonds, at a very low cost, professionally managed by Vanguard. The fund gradually gets more conservative as you approach the target date and settles o...
by rkhusky
Mon Jul 13, 2015 7:02 am
Forum: Investing - Help with Personal Investments
Topic: "Backdoor" Traditional TSP? Have I missed something?
Replies: 1
Views: 245

Re: "Backdoor" Traditional TSP? Have I missed something?

I see no impediment if your modified AGI is less than $61K for single or $98K for married. Of course, you will then be bound to the TSP's rather inflexible withdrawal options and their less than desirable I Fund for international stocks.
by rkhusky
Fri Jul 10, 2015 2:24 pm
Forum: Investing - Theory, News & General
Topic: Minimizing Unwanted RMDs
Replies: 3
Views: 727

Re: Minimizing Unwanted RMDs

I wonder what the results were for ages 75 and 85? Not many people make it to 95.
by rkhusky
Fri Jul 10, 2015 7:05 am
Forum: Personal Consumer Issues
Topic: OPM breach and credit freeze
Replies: 194
Views: 16999

Re: OPM breach and credit freeze

The EQIP SF86 data includes SS numbers for family members as well. Children, siblings, spouses and parents. I don't think that is correct. Here's what struck me about the WSJ article that TimeRunner posted: Those forms are held often in an unencrypted fashion on OPM’s computer networks. There's the...
by rkhusky
Fri Jul 10, 2015 6:54 am
Forum: Investing - Help with Personal Investments
Topic: New to Federal Government-Need help with TSP allocation
Replies: 5
Views: 468

Re: New to Federal Government-Need help with TSP allocation

The L2040 fund looks like an appropriate choice.
by rkhusky
Wed Jul 08, 2015 9:37 am
Forum: Investing - Help with Personal Investments
Topic: Why do Morningstar and Vanguard.com differ in how much EM VXUS has?
Replies: 3
Views: 244

Re: Why do Morningstar and Vanguard.com differ in how much EM VXUS has?

GammaPoint wrote:Why the difference? Do they differ in which countries are considered emerging market?


Yes. For example, Vanguard considers Taiwan emerging and Morningstar doesn't. See their breakdowns of Vanguard Emerging Markets fund.
by rkhusky
Mon Jul 06, 2015 10:15 am
Forum: Investing - Help with Personal Investments
Topic: Allocations for my 401K
Replies: 27
Views: 2006

Re: Allocations for my 401K

My problem with all of it is that you have access to BTC Lifepath funds with ER 0.09% …how are they not even being discussed as a viable option? They're excellent lifecycle/target funds with a straight forward glide path. I don't think you can make a DIY portfolio inside of this 401k that is as com...
by rkhusky
Sun Jul 05, 2015 10:50 pm
Forum: Investing - Theory, News & General
Topic: How many Bogleheads tilt Value?
Replies: 49
Views: 3343

Re: How many Bogleheads tilt Value?

Would you consider Greek stocks to be value stocks? If so, are you ready to buy Greek stocks? FWIW, according to Morningstar, VBR has a P/E of 18 and a P/B of 1.7, while GREK has a P/E of 12 and a P/B of 1. If you are going to do value, you might as well do it when it is low. BTW, Value does not nec...
by rkhusky
Fri Jun 26, 2015 7:47 am
Forum: Investing - Help with Personal Investments
Topic: Vanguard 529 vs. Michigan 529
Replies: 8
Views: 1307

Re: Vanguard 529 vs. Michigan 529

I note that other sites, including the Bogleheads wiki, also say that Michigan does not recapture the state tax break when rolling over to another state's plan. The disclosure document has this rather opaque statement: MESP has received guidance from the Michigan Department of Treasury, the Bureau ...
by rkhusky
Wed Jun 24, 2015 5:27 pm
Forum: Investing - Help with Personal Investments
Topic: Target Date 2015- Low-credit-quality bonds?
Replies: 14
Views: 1981

Re: Target Date 2015- Low-credit-quality bonds?

Perhaps the Vanguard analyzer considers TIPS to be low quality. Only TR 2010 and 2015 have TIPS and they are about 20% of the bonds.
by rkhusky
Wed Jun 24, 2015 5:00 pm
Forum: Investing - Help with Personal Investments
Topic: Vanguard 529 vs. Michigan 529
Replies: 8
Views: 1307

Re: Vanguard 529 vs. Michigan 529

I note that other sites, including the Bogleheads wiki, also say that Michigan does not recapture the state tax break when rolling over to another state's plan. The disclosure document has this rather opaque statement: MESP has received guidance from the Michigan Department of Treasury, the Bureau o...
by rkhusky
Wed Jun 24, 2015 12:34 am
Forum: Investing - Help with Personal Investments
Topic: When is a Roth 401k the Better Option?
Replies: 27
Views: 1942

Re: When is a Roth 401k the Better Option?

If you are not expecting a pension, you will want enough in traditional to fill the 0% and 10% brackets every year in retirement. No sense in paying 15% now, when you could be paying 0% in retirement. Would you suggest dedicating a certain amount in my early years to a Traditional 401k, and then sw...
by rkhusky
Wed Jun 24, 2015 12:22 am
Forum: Investing - Help with Personal Investments
Topic: Target Date 2015- Low-credit-quality bonds?
Replies: 14
Views: 1981

Re: Target Date 2015- Low-credit-quality bonds?

Don't all the TR funds invest in the Total Bond fund? They don't invest individually.
by rkhusky
Wed Jun 24, 2015 12:11 am
Forum: Investing - Help with Personal Investments
Topic: When is a Roth 401k the Better Option?
Replies: 27
Views: 1942

Re: When is a Roth 401k the Better Option?

If you are not expecting a pension, you will want enough in traditional to fill the 0% and 10% brackets every year in retirement. No sense in paying 15% now, when you could be paying 0% in retirement.
by rkhusky
Sat Jun 20, 2015 1:58 pm
Forum: Personal Consumer Issues
Topic: OPM breach and credit freeze
Replies: 194
Views: 16999

Re: OPM breach and credit freeze

Regardless of whether you are owed a refund, you wouldn't be able to file because they've already filed a fake return. There is nothing that prevents you from filing a paper return. Presumably the IRS will recognize that the paper return is the correct one. If you owe, then you don't get upset wait...

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