Search found 32 matches

by Clivus1
Sat Jan 14, 2017 7:01 am
Forum: Personal Finance (Not Investing)
Topic: Best credit card for cash back
Replies: 104
Views: 45307

Re: Best credit card for cash back

Amazon store card (not their credit card) provides 5% cash back on all Amazon purchases.

Fidelity Visa Signature rewards provides 2% cash back and requires no intervention on my part for redemption - unlike the Citi products.

I'm not patient enough to track categories.
by Clivus1
Mon Sep 01, 2014 6:17 pm
Forum: Personal Consumer Issues
Topic: Philly Hotels, with the family
Replies: 15
Views: 2012

Re: Philly Hotels, with the family

Check out Airbnb. I have had great luck in multiple destinations.
by Clivus1
Tue Aug 05, 2014 12:29 pm
Forum: Personal Finance (Not Investing)
Topic: Should i Buy a new car
Replies: 87
Views: 8359

Re: Should i Buy a new car

Keep the older car.

My life situation is very similar to yours. My fellow physicians and spouse thought I should get a new car.

I sold an 8 year old Subaru which was in perfect mechanical condition for a fancy new car costing 5x as much.

The new car was great for a few months, but I'd trade it today for the cash in my taxable account.

As a physician the only thing you need to do is keep it simple and avoid the temptation to meet others expectations.

With your income you should never finance a depreciating asset like a car.
by Clivus1
Tue Aug 05, 2014 12:16 pm
Forum: Personal Investments
Topic: Automatic PCRA investment
Replies: 11
Views: 1716

Re: Automatic PCRA investment

My Schwab 401k PCRA requires a manual transaction to purchase securities with each deposit. I have not found a way around it.
by Clivus1
Sun Jul 20, 2014 12:55 pm
Forum: Personal Investments
Topic: Stop Loss on stocks/ ETFs
Replies: 12
Views: 2438

Re: Stop Loss on stocks/ ETFs

Stop loss sounds like a great way to minimize risk to the downside.

The problem arises when trying to decide when to reinvest.
by Clivus1
Thu Jul 17, 2014 8:50 pm
Forum: Personal Finance (Not Investing)
Topic: 15 year mortgage or a 30 year & Invest?
Replies: 34
Views: 7494

Re: 15 year mortgage or a 30 year & Invest?

The dispassionate robot would get a 30 year note and invest.

Make a spreadsheet comparing the two options for 5,10,15, and 20 years. This was eye opening for me and led me to use a 30 year mortgage for my most recent home.

Don't forget to factor in the amount your mortgage payment will shrink relative to income due to the effect of inflation.

Also, remember you are very unlikely to live in the same house 30 years from now.
by Clivus1
Mon May 05, 2014 10:11 pm
Forum: Personal Investments
Topic: New Boglehead 43yr old possible Total Revamp of Portfolio
Replies: 27
Views: 6515

Re: New Boglehead 43yr old possible Total Revamp of Portfoli

There is no mathematical reason to aggressively pay down a 2.85% mortgage, only emotional reasons. This topic is a source of much debate here, but I would keep the mortgage. Your long term goals may be better served by more taxable investing now.

Keep it simple and use three funds:
Vanguard total stock
Vanguard total international
Vanguard total bond

There is no correct answer for the proper percentage of bonds. If you are going to panic and sell with 100% stocks you will probably also do it with 80%

There is no correct answer for the proper percentage of international stock. The consensus number seems to creep up every year. I keep it simple and split 50/50, this is very close to the world market cap.
by Clivus1
Thu Jan 09, 2014 12:46 pm
Forum: Personal Investments
Topic: Schwab PCRA through 401k?
Replies: 9
Views: 1220

Re: Schwab PCRA through 401k?

I've used the PCRA option with Schwab for in the same manner as dbr for the past 5 years or so. No problems for me.

The only minor issue aside from the commissions when trading and the annual fee is the way they reinvest dividends in non-Schwab products. They hold the dividend for a day or two in cash, then buy the appropriate ETF. This introduces some delay in the purchase (and associated change in purchase price) when compared with Vanguard accounts.
by Clivus1
Fri Jan 03, 2014 10:06 am
Forum: Personal Investments
Topic: To payoff mortgage or not
Replies: 64
Views: 5441

Re: To payoff mortgage or not

There are no compelling financial reasons to pay off your mortgage, only emotional ones. You have borrowed at some of the lowest rates in history. You are a young accumulator. Run some 20 year simulations of your portfolio with and without the mortgage.

In a crisis 10 years from now would you rather be free of the mortgage or have the cash available?
by Clivus1
Mon Dec 16, 2013 9:02 pm
Forum: Personal Consumer Issues
Topic: Bogleheads favorite Task management App?
Replies: 17
Views: 2342

Re: Bogleheads favorite Task management App?

Wunderlist and Evernote are both excellent
by Clivus1
Tue Oct 22, 2013 5:19 am
Forum: Personal Investments
Topic: Emerging market allocation
Replies: 18
Views: 4442

Re: Emerging market allocation

9.3% Emerging for me

I replicate Vanguard total world in my equity holdings and all of my international holdings are VXUS. International represents ~52% of equities for me.
by Clivus1
Thu Oct 17, 2013 9:55 am
Forum: Investing - Theory, News & General
Topic: Shouldn't we all be 50/50
Replies: 44
Views: 4605

Re: Shouldn't we all be 50/50

I see tremendous risk in bonds as an accumulator in my forties. The risk lies in losing to inflation over my long timeline. With an investment horizon greater than 20 years I see little reason for bonds. Vanguard seems to agree as they have become much more aggressive in their target date products.

If I was nearing retirement or retired my concerns would be much different and my focus more on preservation rather than long term growth.
by Clivus1
Sun Oct 13, 2013 8:43 am
Forum: Personal Investments
Topic: Taxable portfolio
Replies: 12
Views: 1358

Re: Taxable portfolio

Using VXUS and moving your international allocation to taxable is an efficient solution to lack of sheltered space. VXUS is one of the most tax efficient, low cost vehicles available. As an ETF it is slightly more tax efficient when compared with the fund equivalent. I would not put bonds or domestic equities in taxable unless absolutely necessary.
by Clivus1
Sun Oct 13, 2013 8:35 am
Forum: Personal Investments
Topic: Reliable ETF Bid/Ask spread information
Replies: 8
Views: 1999

Re: Reliable ETF Bid/Ask spread information

livesoft,

What are you getting at with the method that Schwab automatically reinvests dividends? I don't seem to pay commission on reinvestment. They do hold the money for 72 hours in a sweep account before depositing the shares.

You are tempting me with your suggestion of SWTSX. I'll investigate a bit more. It tracks DJ US total stock market index and VTI tracks CRSP US total market index. Depending on which period you pick they have more that 1% difference in performance.
by Clivus1
Sat Oct 12, 2013 10:10 am
Forum: Personal Investments
Topic: Reliable ETF Bid/Ask spread information
Replies: 8
Views: 1999

Re: Reliable ETF Bid/Ask spread information

Thank you stultz. Fidelity shows an average bid/ask of 0.04% for SCHB, but only 0.01 for VTI. SCHB may improve with time, it is a relatively small ETF compared with VTI.

livesoft - I'm not sure when I'll be trading in the future, so I like to look at average bid/ask. I do use limit orders to minimize risk when selling, but I still think its worth reviewing historical spreads.

SWTSX is an alternative, but it only holds 2445 securities versus 3552 for VTI.

I'm probably going to stick with vanguard despite the $96 a year in trading costs. It has better diversification and lower total expenses compared with the Schwab products. The simplicity of only having a few products in my portfolio also has appeal for me.
by Clivus1
Sat Oct 12, 2013 8:24 am
Forum: Personal Investments
Topic: Reliable ETF Bid/Ask spread information
Replies: 8
Views: 1999

Reliable ETF Bid/Ask spread information

I'm trying to determine the lowest cost way to own the total domestic stock market in my 401k using ETFs. My account is at Schwab and I am able to trade Schwab ETF products without commission. The vast majority of my portfolio is at Vanguard and I use VTI for my domestic equity holdings. I am having trouble making an a proper comparison because I can't seem to find 30 day average bid/ask data for Schwab products. I also incur a $9 commission with each transaction if I purchase VTI. Assuming 12 transactions a year with $17,500 contributed this gives VTI a 0.57% headwind on commissions alone. VTI 30 day average bid/ask is .01 according to vanguard data: https://institutional.vanguard.com/VGApp/iip/site/institutional/investments/bidaskspread D...
by Clivus1
Tue Sep 03, 2013 8:53 am
Forum: Personal Investments
Topic: Pay down mortgage or invest?
Replies: 15
Views: 2687

Re: Pay down mortgage or invest?

A few thoughts: 1 Mortgage rate are at generational lows. As others have mentioned your effective return on paying down the mortgage is well south of 4% If it ever makes sense to invest rather than pay down the mortgage the time is now. 2 Inflation will dramatically shrink your mortgage payment as a fraction of income over 30 years. 3 Early savings rate plays a large role in portfolio success. It will be mathematically very challenging to "catch up" later with a more aggressive savings rate. 4 Ask yourself which is a stronger position in 15 years: Mortgage paid off or funds in the bank able to pay off the mortgage + residual balance. I find the fourth argument very compelling and have decided to keep my mortgage and divert more ca...
by Clivus1
Sun Aug 18, 2013 9:38 am
Forum: Personal Investments
Topic: Too Much Cash with Market at Peak
Replies: 24
Views: 4523

Re: Too Much Cash with Market at Peak

Keep in mind that historically the market is usually at all time highs. Take a look at a 40 year graph of stock market performance.
by Clivus1
Wed May 22, 2013 11:55 am
Forum: Investing - Theory, News & General
Topic: I really hope people aren't tilting US due to recency
Replies: 36
Views: 4070

Re: I really hope people aren't tilting US due to recency

The precise percentage may vary with the source used.

The World Bank lists the US as just less than 40% of global equity.

http://data.worldbank.org/indicator/CM. ... play=graph
by Clivus1
Wed May 22, 2013 9:19 am
Forum: Investing - Theory, News & General
Topic: I really hope people aren't tilting US due to recency
Replies: 36
Views: 4070

Re: I really hope people aren't tilting US due to recency

The US equity market represents a bit less than 40 percent of the global equity market. My equity allocation is slowly moving to match the global market composition. I'm currently 55% international.
by Clivus1
Sat May 11, 2013 8:06 am
Forum: Investing - Theory, News & General
Topic: 100% equities, anyone?
Replies: 149
Views: 14689

Re: 100% equities, anyone?

My invested portfolio is all in equities. I am 40 and in a very stable job. This exludes some cash reserves. The breakdown is as follows:
45% Domestic equities
55% International equities

Asset allocation is very personal and there is no single "correct" answer. My timeline is long and the data tells me there are no 20 year periods where bonds add return. Others interpret historical performance and see a different message. I experienced very large losses in the tech crash and the Great Recession, but have continued to buy equities in a systematic manner.

As I move closer to retirement my allocation will undoubtedly change. Currently reduced volatility and income are not priorities - so no bonds for me now.
by Clivus1
Fri May 10, 2013 8:22 am
Forum: Investing - Theory, News & General
Topic: Time to rethink placing bonds in tax advantaged?
Replies: 15
Views: 2326

Time to rethink placing bonds in tax advantaged?

Is it time to revisit the conventional approach of placing bonds in tax advantaged accounts?

The yield on Vanguard Total Bond Market Admiral mutual fund shares is 1.56%.

The yield on Vanguard Total Stock Market Admiral mutual fund shares is 1.97%.

Past performance does not predict the future, but bond yields seem likely to remain low for the near term. Most rebalancing now involves selling equities and buying bonds.

Anyone have thoughts?
by Clivus1
Fri May 03, 2013 11:10 am
Forum: Personal Investments
Topic: Don't want to TLH. Is this a bad idea? [Tax Loss Harvest]
Replies: 38
Views: 3559

Re: Don't want to TLH. Is this a bad idea?

The only time tax loss harvesting works in your favor is if you never sell your harvested position. For most people TLH makes no sense in the long term. Below is a link to an explanation:

http://www.evansonasset.com/index.cfm?Page=56
by Clivus1
Tue Apr 30, 2013 10:44 pm
Forum: Personal Investments
Topic: Portfolio advice for young couple with first real job
Replies: 13
Views: 1309

Re: Portfolio advice for young couple with first real job

Asset allocation is a personal choice and there is no right answer. 100% equities is a reasonable asset allocation for young investors with a long timeline. Vanguard has an online tool which may help with your decision. In the end the most damage to your savings occurs if you choose a strategy and then change course abruptly when the market turns.

Past performance does not guarantee future results, but history demonstrates no advantage to bonds in terms of total return over long time periods. Bonds do decrease the volatility over the long term. However, those who panic and sell with 100% equities will likely do the same with 70%.

The idea is to develop a plan you are comfortable with so you do not abandon it a the wrong time.
by Clivus1
Sat Apr 27, 2013 7:01 am
Forum: Investing - Theory, News & General
Topic: Meet Mr. Money Mustache, the man who retired at 30
Replies: 253
Views: 44039

Re: Meet Mr. Money Mustache, the man who retired at 30

I like some elements of his message, but I suspect his blog income alone is greater than his peak wages before "retirement"
by Clivus1
Mon Apr 15, 2013 8:04 am
Forum: Investing - Theory, News & General
Topic: Post your asset allocation here:
Replies: 136
Views: 16567

Re: Post your asset allocation here:

40 years old

45% Total International Equity (VXUS)
45% Domestic Equity (VTI, VIFSX, VXF, and VBR) - This mix is complicated due to retirement plan options and a 16% tilt toward VBR
10% REIT (all in VNQI)

Next moves?
I've been thinking of moving out of 100% equities and adding bonds, but It is hard to get motivated with such low rates and my long timeline.
by Clivus1
Wed Apr 10, 2013 11:00 pm
Forum: Personal Investments
Topic: ETF vs Index Fund
Replies: 19
Views: 1899

Re: ETF vs Index Fund

ETF investing allows you to sell your investment when you like and set the price using limit orders. This is not true with funds which settle transactions when the market closes.

ETFs can have tax advantages. Due to structural differences mutual finds incur more capital gains. Typically an ETF investors only incurs a capital gain when selling shares.

One disadvantage of ETF investing is the additional expense of the bid ask spread incurred with each transaction.

The choice between the funds and ETFs for the index investor is more complex than many make is seem.
by Clivus1
Fri Feb 22, 2013 8:53 am
Forum: Investing - Theory, News & General
Topic: Total World portfolio
Replies: 14
Views: 2348

Re: Total World portfolio

I use VTI + VXUS over VT for two reasons:
1) Lower expenses
2) Greater diversification. VT contains 4,207 individual securities. VTI + VXUS contains a total of 9,466 securities.

I am also exploring adding international bonds to my portfolio. The new Vanguard fund international bond fund is currency hedged and this has implications that i'm still trying to understand. Below is a link to a blog post discussing the new fund which helped me:

http://www.longtermreturns.com/2013/02/ ... -fund.html
by Clivus1
Sat Feb 16, 2013 12:36 pm
Forum: Personal Investments
Topic: Tilting to SmallCapValue & IntlSmall...Thoughts?
Replies: 18
Views: 2464

Re: Tilting to SmallCapValue & IntlSmall...Thoughts?

I'm following a similar plan using a simple ETF portfolio. 55% Domestic (mostly VTI) 45% International (VXUS) The domestic is tilted using 15% VBR The international is titled 15% VSS Nobody knows how much tilt is needed strike the ideal balance between enhanced return increased risk/volatility. Certainly the past performance modeling using 20 year periods is compelling. Sometimes I think removing the tilt and just having a simple VTI/VXUS split may have 98% of the benefit at a lower cost with less complexity. Vanguard does not offer an international small cap ETF with a value bias. VSS seemed to be the closest choice for me. I was attracted to DFA funds after researching the topic, but I'm not willing to pay a advisor to access their produc...
by Clivus1
Sat Feb 16, 2013 12:14 pm
Forum: Personal Investments
Topic: What is the percentage of Bonds in your Portfolio?
Replies: 14
Views: 3211

Re: What is the percentage of Bonds in your Portfolio?

I'm 40 with an all stock portfolio. I've never owned a bond. I'm thinking of adding some when the new Vanguard international bond ETF debuts.

Timing the market may be impossible, but 1% yields provide little incentive for me to move into bonds.
by Clivus1
Fri Feb 15, 2013 1:48 pm
Forum: Personal Investments
Topic: *fired my advisor* need help with investments
Replies: 27
Views: 5173

Re: *fired my advisor* need help with investments

My life situation is similar to yours, so I'll share my thoughts. Paying down your mortgage is silly. The only argument for this is psychological security (which is likely false). Interest rates are at historic lows. Your mortgage interest is tax deductible, this makes the true cost of capital even lower. You have significant equity and cash savings larger than the mortgage balance. What is a stronger position in 15 years - mortgage paid off or low interest debt with an additional cash account containing more than the balance of the mortgage? Call PenFed and get a 15 or 30 year fixed mortgage. There is no modern 20 year period where this strategy fails at today's low rates. From an investment perspective it is easy. Call Vanguard and tell t...
by Clivus1
Thu Feb 14, 2013 10:30 pm
Forum: Personal Investments
Topic: VTI = 70%VOO + 30%VFX?
Replies: 1
Views: 2464

VTI = 70%VOO + 30%VFX?

I have a deferred compensation plan which has a limited number of investment choices. Fortunately one of the options is VOO. I am trying to mimic VTI by combining VOO and VFX in separate accounts. What ratio of VOO to VXF do I need to accomplish this goal? I'm currently using a 70/30 mix. Thanks in advance.