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Re: When do dividends post to Vanguard accounts?

The dividends in our taxable funds are sent to our money market account. They all posted on 12/19, including the money market, also at a slightly higher amount than predicted. A number of the funds in our Roth IRA's had dividends that showed up on 12/19, which are reinvested. We had one fund that po...
by rkhusky
Sat Dec 20, 2014 1:21 pm
 
Forum: Investing - Theory, News & General
Topic: When do dividends post to Vanguard accounts?
Replies: 13
Views: 1126

Re: Total US Equity Exposure Using Russell 1000 & Russell 25

I like to use linear combinations of the Giant, Large, Medium, Small and Micro categories from Morningstar's Portfolio pages. For example, VG Total Stock Market has this (G,L,Md,S,Mc) breakdown: (41.6, 30.3, 19.0, 6.5, 2.6). A 92% IWB + 8% VQSIX mix has this breakdown (41.3, 30.4, 22.4, 4.8, 1.1) A ...
by rkhusky
Fri Dec 19, 2014 12:11 pm
 
Forum: Investing - Help with Personal Investments
Topic: Total US Equity Exposure Using Russell 1000 & Russell 2500?
Replies: 8
Views: 679

Re: Vanguard’s 2015 global outlook

What is their track record on global outlook accuracy?

Even if it is good, would that change your investment strategy?
by rkhusky
Fri Dec 19, 2014 11:24 am
 
Forum: Investing - Theory, News & General
Topic: Vanguard's economic and investment outlook [2015]
Replies: 21
Views: 2743

Re: myRA is now open

OP: For the reasons you outlined, the myRA has limited appeal. (Takes away your Roth IRA or Traditional IRA space and has a cap of $15K). The only reason to use it is simplicity for a beginning investor, and is it that much simpler than an IRA? Even if you think the G Fund is magical, you can only g...
by rkhusky
Thu Dec 18, 2014 4:47 pm
 
Forum: Personal Finance (Not Investing)
Topic: myRA is now open
Replies: 31
Views: 1904

Re: Total Market fund for Developed countries only

There is this Wiki that addresses how to approximate the total international stock market for those in the TSP, but in my view, it falls short due to the expenses and large number of funds involved. The best compromise I could come up with is: I Fund - 73% (Developed) VEMAX - 17% (Emerging) EWC - 1...
by rkhusky
Thu Dec 18, 2014 8:50 am
 
Forum: Investing - Theory, News & General
Topic: Total Market fund for Developed countries only
Replies: 17
Views: 1406

Re: Max my 401K early, how to maximize employer match?

Otherwise, you might need to keep an eye on it, and after your bonus, ramp up the percentage or something. Seems like you would need to ramp down the percentage after getting an unexpected bonus. Since you cannot set a fixed amount and, if there is no automatic correction feature, you will just hav...
by rkhusky
Thu Dec 18, 2014 8:21 am
 
Forum: Investing - Theory, News & General
Topic: Max my 401K early, how to maximize employer match?
Replies: 13
Views: 1493

Re: On average, how often do you check your investment balan

I probably check balances weekly and check my AA every 2-4 weeks, usually when I enter a paycheck.
by rkhusky
Thu Dec 18, 2014 8:02 am
 
Forum: Personal Finance (Not Investing)
Topic: On average, how often do you check your investment balances?
Replies: 53
Views: 3290

Re: Could it be worth using Roth even in a high tax bracket?

You can use the money that you saved by investing in a Traditional 401K to fund a Roth IRA and/or to invest in a taxable account. Congress can just as easily require RMD's on Roth IRA's, as they can increase taxes. Just like they implemented taxation of SS benefits. It is unlikely that there would e...
by rkhusky
Wed Dec 17, 2014 7:52 am
 
Forum: Investing - Theory, News & General
Topic: Could it be worth using Roth even in a high tax bracket?
Replies: 37
Views: 2358

Re: Close to Roth IRA limit should I do Roth or Back door?

retiredjg wrote: Got any charitable donations you want to make earlier than planned?


I don't think charitable donations affect the MAGI.
by rkhusky
Tue Dec 16, 2014 4:04 pm
 
Forum: Investing - Help with Personal Investments
Topic: Close to Roth IRA limit should I do Roth or Back door?
Replies: 12
Views: 1203

Re: Roth investments

I would start adding bonds. Easiest is through the Target Retirement/Lifestrategy funds. An alternative is to own the separate components. One failing of the TSP is the I Fund, which contains no Small Int'l or Emerging Market or Canadian stocks. So, you could buy VG Total Int'l in your Roth and buy ...
by rkhusky
Tue Dec 16, 2014 7:46 am
 
Forum: Investing - Help with Personal Investments
Topic: Roth investments
Replies: 3
Views: 627

Re: Are VG Indexes Weighted by their market capitalization?

VG Total Stock Market Index is market capitalization weighted and it is very efficient. The only way to be more efficient is to just buy and hold, which results in style drift and may not even be possible with a mutual fund, unless it is closed to redemptions and new investment.
by rkhusky
Tue Dec 16, 2014 7:38 am
 
Forum: Investing - Theory, News & General
Topic: Are VG Indexes Weighted by their market capitalization?
Replies: 2
Views: 366

Re: Rollover Roth 401(k) to Roth IRA or TSP? Gut Check

Contributing to a Roth while you are in the 15% bracket makes sense, switch to partial Traditional to stay in the 15% bracket once your salary increases. Do you expect to have a period of time between retirement and collecting your pension or Social Security, such that you could do Roth conversions ...
by rkhusky
Mon Dec 15, 2014 9:25 pm
 
Forum: Investing - Help with Personal Investments
Topic: Rollover Roth 401(k) to Roth IRA or TSP? Gut Check
Replies: 10
Views: 982

Re: Is monthly rebalancing too frequent?

On a related note, I heard the money must stay in the VG fund for 90 to move it without fee but how does that work with money already in an account? These are not my real investment numbers: There is a fee if you sold and then repurchased shares in most Vanguard Mutual Funds within a short time per...
by rkhusky
Fri Dec 12, 2014 4:01 pm
 
Forum: Investing - Theory, News & General
Topic: Is monthly rebalancing too frequent?
Replies: 26
Views: 1507

Re: Starting out at 35 with index funds and misc

I'm not writing it off as an option but I'd be interested in reading more before locking in to that. You are not locking yourself into anything. If this is a tax-advantaged account, the only thing you need to worry about is Vanguard's frequent trading policy and that says that if you sell out a fun...
by rkhusky
Fri Dec 12, 2014 2:49 pm
 
Forum: Investing - Help with Personal Investments
Topic: Starting out at 35 with index funds and misc
Replies: 17
Views: 1692

Re: funds which glide in <10 years

It seems like, if you think we are in a bubble right now, you'd want to do the opposite - invest in bonds right now and slowly increase the equity portion. I think there are some target retirement-like funds that stay flat for quite awhile, but rapidly drop the equity portion as one gets close to re...
by rkhusky
Fri Dec 12, 2014 2:28 pm
 
Forum: Investing - Help with Personal Investments
Topic: funds which glide in <10 years
Replies: 7
Views: 934

Re: 401k equal to less then Roth IRA in your asset calculati

You can check out this wiki page:Tax Adjusted Asset Allocation

And also search the site for discussions on tax adjusting.
by rkhusky
Fri Dec 12, 2014 2:11 pm
 
Forum: Investing - Help with Personal Investments
Topic: 401k equal to less then Roth IRA in your asset calculations?
Replies: 2
Views: 279

Re: Starting out at 35 with index funds and misc

+1 for the Vanguard Target Retirement funds. Expense ratios of only 0.16% - 0.18% and you own pretty much the entire stock market and a broad selection of bonds.
by rkhusky
Fri Dec 12, 2014 2:05 pm
 
Forum: Investing - Help with Personal Investments
Topic: Starting out at 35 with index funds and misc
Replies: 17
Views: 1692

Re: What is your opinion about "tilting?"

The fact that most bogleheads believe in tilting, however framed, is not surprising. From the poll, the majority of responders tilt, but it is not clear to me that the majority "believe in tilting" or that they think it is "worthwhile". I would define "worthwhile" as g...
by rkhusky
Fri Dec 12, 2014 8:13 am
 
Forum: Investing - Theory, News & General
Topic: What is your opinion about "tilting?"
Replies: 116
Views: 8750

Re: Toddlers first flight

anonforthis wrote: I will bring goody bags for those around us.


Not necessary, unless your children are excessively hyper-active. Lots of children fly, it is not that unusual. If your children are ordinary, you are worrying too much. Don't let them feel your fear.
by rkhusky
Thu Dec 11, 2014 11:00 am
 
Forum: Personal Consumer Issues
Topic: Toddlers first flight
Replies: 30
Views: 1841

Re: Different Experience With TSA Pre-Check

I just flew home from Newark and, in terminal A at least, there is no separate line for TSA-Pre, though they do have a sign for it pushed to the side. Like the others, I was given a card to hand to the next agent and was waved through the metal detector. For some reason, I was sent to the priority ...
by rkhusky
Thu Dec 11, 2014 9:09 am
 
Forum: Personal Consumer Issues
Topic: Different Experience With TSA Pre-Check
Replies: 35
Views: 2811

Re: Is the collapse of oil price a "black swan"?

It remains to be seen. If it causes a domino effect (perhaps Russia invading a couple of neighbors) that causes the stock market to drop by 50% and where the market doesn't recover for 10 years, then it might classified as a black swan. I think a black swan has to be something that isn't predicted b...
by rkhusky
Thu Dec 11, 2014 8:59 am
 
Forum: Investing - Theory, News & General
Topic: Is the collapse of oil price a "black swan"?
Replies: 88
Views: 7706

Re: Toddlers first flight

A variety of finger food, small toys, books, video player will do the job. The 3 yo might like simple card games, like Go Fish, Crazy Eights, etc. Plus let them look at the safety brochure, the flight magazine and the gift catalog. Getting to pick their own drink and snack can interest them for a bi...
by rkhusky
Thu Dec 11, 2014 8:41 am
 
Forum: Personal Consumer Issues
Topic: Toddlers first flight
Replies: 30
Views: 1841

Re: Why are high 401k fees maintained in competitive equilib

Why do people use high-priced plans for their IRA's? Why do people use banks that charge them high fees? Why do people shop at expensive grocery stores? Why do people buy a Rolex? Answers: personal preference, inertia, desire for above-average performance, convenience, lack of knowledge, customer se...
by rkhusky
Thu Dec 11, 2014 7:59 am
 
Forum: Investing - Theory, News & General
Topic: Why are high 401k fees maintained in competitive equilibrium
Replies: 46
Views: 2162

Re: Thrift Savings Plan vs Roth TSP

Also keep in mind that, if you reach an income level where the Traditional TSP makes more sense, as of now, you cannot withdraw just Traditional or Roth funds, they are withdrawn together, pro rated. This is also true for RMD's.
by rkhusky
Wed Dec 10, 2014 2:31 pm
 
Forum: Investing - Help with Personal Investments
Topic: Thrift Savings Plan vs Roth TSP
Replies: 11
Views: 1306

Re: What is your opinion about "tilting?"

>>I tilt, and I think everyone should. The edge is small but it's there, and it's not really that hard or that expensive to do it.>> For those who checked this, please explain how it is possible for everyone to tilt. The only portfolio everyone can hold is the market portfolio. If one person tilts ...
by rkhusky
Wed Dec 10, 2014 12:31 pm
 
Forum: Investing - Theory, News & General
Topic: What is your opinion about "tilting?"
Replies: 116
Views: 8750

Re: Do I use Roth or 401k for Total Bond Market?

I would say put the funds with the highest expected return in the Roth, because they can be withdrawn tax free. Put funds with lower expected return in the Traditional. Of course that could backfire if you have to do a significant withdrawal in a period where the expectations don't pan out But there...
by rkhusky
Wed Dec 10, 2014 10:35 am
 
Forum: Investing - Help with Personal Investments
Topic: Do I use Roth or 401k for Total Bond Market?
Replies: 3
Views: 323

Re: Thrift Savings Plan vs Roth TSP

+1 for using Roth TSP in your situation.
by rkhusky
Wed Dec 10, 2014 8:16 am
 
Forum: Investing - Help with Personal Investments
Topic: Thrift Savings Plan vs Roth TSP
Replies: 11
Views: 1306

Re: What is your opinion about "tilting?"

I have small tilts to small, value, and emerging markets. I tilt because I don't want to have a completely market cap portfolio and I like to monkey around with my investments (but only a little bit).
by rkhusky
Wed Dec 10, 2014 8:10 am
 
Forum: Investing - Theory, News & General
Topic: What is your opinion about "tilting?"
Replies: 116
Views: 8750

Re: Quick question: S&P 500 or Total Stock

Some reasons to hold S&P500 over Total Stock in a tax advantaged account are that you want to tilt towards large caps versus small caps or you have other accounts with restricted choices, such as a 401K, and you have no good large cap choice, but do have an acceptable small cap choice (or that t...
by rkhusky
Wed Dec 10, 2014 8:03 am
 
Forum: Investing - Help with Personal Investments
Topic: Quick question: S&P 500 or Total Stock
Replies: 18
Views: 1740

Re: Tax idea - swap highly appreciated stock for other asset

In the case of stock A for stock B, perhaps you could sign an agreement, such that the owners of A and B agree to swap shares informally (i.e. without the ownership changing), but that when it comes time to sell, they get the proceeds of each other's shares. However, since the IRS taxes bartering (h...
by rkhusky
Tue Dec 09, 2014 4:17 pm
 
Forum: Personal Finance (Not Investing)
Topic: Tax idea - swap highly appreciated stock for other assets?
Replies: 4
Views: 324

Re: Does splitting int'l markets increase returns?

Second: if your underlying holdings are the same, your returns, pre-cost, must of necessity be the same. I don't mean to question you PJW, as you know far more than I, but in this example, I would be splitting the holdings and rebalancing - would that not change the returns? thank you If you holdin...
by rkhusky
Tue Dec 09, 2014 12:09 pm
 
Forum: Investing - Theory, News & General
Topic: Does splitting int'l markets increase returns?
Replies: 21
Views: 1779

Re: VanG 500 IN + VanG Xtnd Mkt = TSMI?

80/20 is the rough ratio of 500/Extended Market. It shouldn't change by more than a couple percent and certainly a few percent discrepancy is immaterial.
by rkhusky
Mon Dec 08, 2014 3:19 pm
 
Forum: Investing - Help with Personal Investments
Topic: VanG 500 IN + VanG Xtnd Mkt = TSMI?
Replies: 5
Views: 484

Re: Balance based glide path

Suppose you are 58 with $1.4M (at 60/40) and the market drops by 50%, reducing your portfolio to $1.0M, would you really increase your equity position to 80/20? I hope so. The only question then would be how (over time vs all at once)... The problem is that it is hard to tell when you've hit the bo...
by rkhusky
Mon Dec 08, 2014 2:49 pm
 
Forum: Investing - Help with Personal Investments
Topic: Balance based glide path
Replies: 12
Views: 949

Re: Backdoor rollover IRA to Roth Ira

I am not eligible to contribute to a roth ira (income limitation). I am not able to take a deduction for a traditional ira. I understand you can contribute up to the max of 5500 to a traditional ira and immediately convert it to a roth ira. It will then grow tax free until you start withdrawing $$ ...
by rkhusky
Mon Dec 08, 2014 2:31 pm
 
Forum: Investing - Help with Personal Investments
Topic: Backdoor rollover IRA to Roth Ira
Replies: 7
Views: 439

Re: How to allocate between Wilshire 4500 and S&P 500 Funds?

An 80/20 ratio of 500/4500 is very close to Total Stock Market.
by rkhusky
Mon Dec 08, 2014 9:04 am
 
Forum: Investing - Help with Personal Investments
Topic: How to allocate between Wilshire 4500 and S&P 500 Funds?
Replies: 3
Views: 443

Re: Balance based glide path

Your glide path is still risk based, but you have decided that portfolio balance is more important than retirement age, e.g. if you are 60 and only have $1.0M, then you will work for 5-10 more years to achieve your target goal. Suppose you are 58 with $1.4M (at 60/40) and the market drops by 50%, re...
by rkhusky
Mon Dec 08, 2014 8:49 am
 
Forum: Investing - Help with Personal Investments
Topic: Balance based glide path
Replies: 12
Views: 949

Re: My Rate of Return on my 401K was 9.83%. Is that Good?

And the next time the market has one of its normal corrections, you might see a loss of 10%. And you will still have a good plan.
by rkhusky
Sat Dec 06, 2014 6:38 am
 
Forum: Investing - Help with Personal Investments
Topic: My Rate of Return on my 401K was 9.83%. Is that Good?
Replies: 30
Views: 2496

Re: My Rate of Return on my 401K is 9.83%. Is that Good?

nanoanalyzer wrote:You will never get another chance to put that $5500 in there.

The same goes for the 401K.
by rkhusky
Fri Dec 05, 2014 10:12 pm
 
Forum: Investing - Help with Personal Investments
Topic: My Rate of Return on my 401K was 9.83%. Is that Good?
Replies: 30
Views: 2496

Re: Child Tax Credit and Roth

I could begin funding a Roth instead but that would increase our AGI and I won't be sure how close my 2015 income will be to the Child Tax Credit phase out until late next year. That's why I was thinking to continue making the contributions under Traditional, then converting what I can to Roth at t...
by rkhusky
Thu Dec 04, 2014 3:54 pm
 
Forum: Personal Finance (Not Investing)
Topic: Child Tax Credit and Roth
Replies: 9
Views: 937

Re: Should I rebalance often inside a Roth/401k?

The External Links at the bottom of the Rebalancing wiki page provide some analysis of the effects of rebalancing frequency and band size.

I use smaller bands and rebalance more frequently because I do not like making large dollar amount transactions. So, it is a behavioral thing.
by rkhusky
Thu Dec 04, 2014 12:32 pm
 
Forum: Investing - Help with Personal Investments
Topic: Should I rebalance often inside a Roth/401k?
Replies: 11
Views: 570

Re: Child Tax Credit and Roth

Why don't you just start funding a Roth IRA for your wife and leave the current Traditional IRA alone? What tax rate do you expect to pay on your Traditional withdrawals? Are you expecting a pension in retirement? Do you expect to have a number of years between retirement and collecting a pension or...
by rkhusky
Thu Dec 04, 2014 12:12 pm
 
Forum: Personal Finance (Not Investing)
Topic: Child Tax Credit and Roth
Replies: 9
Views: 937

Re: Capital Gains Tax

You could jointly gift 28k/year or gift more and report on an IRS form without paying gift tax. You would transfer the funds in kind so wouldn't pay capital gains until she cashes them in and pays according to her tax bracket, possibly 0% on CG if in 15% bracket. She could name daughter as benefici...
by rkhusky
Thu Dec 04, 2014 8:11 am
 
Forum: Investing - Help with Personal Investments
Topic: Capital Gains Tax
Replies: 9
Views: 1285

Re: Tax Loss Harvesting and Capital Gains

What is your marginal tax rates on capital gains and income? You can deduct $3K of cap loss per year from your income.
by rkhusky
Thu Dec 04, 2014 7:59 am
 
Forum: Investing - Theory, News & General
Topic: Tax Loss Harvesting and Capital Gains
Replies: 20
Views: 1184

Re: Federal Open Season - Dental

Our kids are entering the orthodontia phase, so we signed up for dental insurance last year, since you need 1 year before they will pay out. Just got the first quote for braces yesterday, which was a bit of sticker shock, but after checking out the web, it was right around the average price. Plus we...
by rkhusky
Wed Dec 03, 2014 10:46 am
 
Forum: Personal Consumer Issues
Topic: Federal Open Season - Dental
Replies: 6
Views: 835

Re: [Poll] What's Your Tax Prep Strategy?

Spreadsheet and fillable PDF's.
by rkhusky
Wed Dec 03, 2014 8:54 am
 
Forum: Personal Finance (Not Investing)
Topic: [Poll] What's Your Tax Prep Strategy?
Replies: 64
Views: 3662

Re: Does the market ever err?

In order to determine if the market ever errs, we need a reliable objective measure of value independent of market price. But if we had such a measure, why would anyone ever trade at another price? Further, can we tell whether there is an error in pricing or whether there is an error in our reliabl...
by rkhusky
Tue Dec 02, 2014 3:46 pm
 
Forum: Investing - Theory, News & General
Topic: Does the market ever err?
Replies: 23
Views: 1654

Re: Inheriting IRA at a young age

The fact that you are withdrawing money from an inherited IRA has no bearing on the decision to invest in Roth vs. Traditional. The latter decision should be based on what you are paying (or saving) in taxes now on contributions and what you expect to be paying on withdrawals from the account years ...
by rkhusky
Tue Dec 02, 2014 9:19 am
 
Forum: Investing - Help with Personal Investments
Topic: Inheriting IRA at a young age
Replies: 12
Views: 1059

Re: Understanding why we market weight

There are theoretical arguments as well; for example, market weighted portfolios are robust vs mergers or spinoffs; if equal weighted portfolios were dominant, arbitragers would have a field day as each merger would cause a halving of the equal weighters' stake. Or you could say that your investmen...
by rkhusky
Tue Dec 02, 2014 7:59 am
 
Forum: Investing - Theory, News & General
Topic: Understanding why we market weight
Replies: 18
Views: 1629

Re: Roth IRA for college savings question

Why not max out a Roth IRA and contribute to a 529? Can't speak for the OP, but the vast majority of people cannot afford to do both. The OP having to use a backdoor Roth IRA, but not being able to max the Roth IRA and contribute to a 529, means that the OP should look at his spending (or reconside...
by rkhusky
Mon Dec 01, 2014 3:08 pm
 
Forum: Investing - Help with Personal Investments
Topic: Roth IRA for college savings question
Replies: 16
Views: 1315
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