Search found 96 matches

by Kevinm1986
Mon Sep 05, 2011 7:54 am
Forum: Personal Investments
Topic: making the best of bad 401k choices
Replies: 23
Views: 2151

There was no ER listed on the Target Retirement funds.
by Kevinm1986
Sun Sep 04, 2011 8:25 pm
Forum: Personal Investments
Topic: making the best of bad 401k choices
Replies: 23
Views: 2151

Thanks for the advice, y'all. I figured the Dodge & Cox Balanced would probably be the consensus choice, but wanted to make sure there weren't any considerations I may have been overlooking.
by Kevinm1986
Sun Sep 04, 2011 4:27 pm
Forum: Personal Investments
Topic: making the best of bad 401k choices
Replies: 23
Views: 2151

making the best of bad 401k choices

I recently started a job and the 401k options are less than ideal. In addition to a stable value fund and a bunch of SSgA target retirement funds, I have these choices: PIMCO Real Return (PRTNX) 0.90% expense ratio PIMCO Total Return (PTRAX) 0.72% Dodge & Cox Balanced (DODBX) 0.54% John Hancock Classic Value (PZFVX) 1.33% American Funds Growth (RGAEX) 0.71% Calamos Growth (CVGRX) 1.31% RS Partners (RSPFX) 1.56% Dodge & Cox Int'l (DODFX) 0.82% Columbia Acorn Int'l (ACINX) 0.99% Invesco Real Estate (IARAX) 1.34% I get a 3.5% match from my employer if I contribute 3% to the 401k, so I obviously want the free money, but I'll be more focused on maxing out my Roth IRA. My current portfolio is a mix of Vanguard funds held in a taxable acco...
by Kevinm1986
Thu Jan 31, 2008 1:53 pm
Forum: Personal Investments
Topic: Which bond fund?
Replies: 11
Views: 3526

Thanks everyone for the advice. I'll go ahead with a 50/50 TBM/TIPS split.
by Kevinm1986
Wed Jan 30, 2008 5:35 pm
Forum: Personal Investments
Topic: Which bond fund?
Replies: 11
Views: 3526

Which bond fund?

I know this a subject that comes up quite a bit, and the differences amount to roughly nil, but I wanted to run this by my fellow Bogleheads to make sure I wasn't missing anything. I'm looking for a Vanguard bond fund, not a fund anywhere else or treasurydirect or anything like that. I have a Roth IRA with STAR (it started out too small for anything else). Once I add the 2008 contribution, it'll be about 10% of my portfolio. I'm 100% stock in taxable accounts, and my plan was always to put my IRA in bonds once I passed the $3000 minimum for Vanguard's bond funds. It seems like there are a few different schools of thought on bonds. One is to take risk on the equity side and go with something very safe on the bond side. Short-term treasuries ...
by Kevinm1986
Tue Jan 01, 2008 2:30 am
Forum: Personal Investments
Topic: Living with Parents to Save Money
Replies: 61
Views: 16293

I'm a 21-year-old grad student and I still live with my parents. I guess that makes me a bit of a loser but I get everything free. That means more money for vacations, booze, and gambling. (I'm mostly kidding about the booze and gambling. Not about the vacations, though.) It would not be feasible to rent an apartment--my grad student stipend is nice, but it would barely cover rent, let alone anything else. I'd rather save for a house and retirement.

As for interest from females, I'm not getting any, but that probably has more to do with being ugly and socially awkward than living with my parents. I'm guessing that doesn't help, though.
by Kevinm1986
Thu Dec 20, 2007 5:58 pm
Forum: Personal Investments
Topic: Young guy, More educated
Replies: 20
Views: 4623

My 2 cents: go 100% stock, but diversify. I'm in a similar situation--I came into a bunch of money at 19 (I'm 21 now), although unfortunately, compared to you, it was more of a one-time deal. (I'm no poker pro, although I'm working on it). I went with a mix of Total Stock Market, Small Value, and international stocks (I have TM Int'l + Emerging Markets, but you might as well go with the FTSE ex-US fund). You make a ton of money, you can always put off buying a house another year or two, so you might as well be aggressive.

[edit]--but the important thing is to put in as much money as you can while you're young and you have no expenses to worry about.

Kevin

P.S. I'm a lurker at 2+2.
by Kevinm1986
Wed Oct 31, 2007 11:44 am
Forum: Investing - Theory, News & General
Topic: Google boggles
Replies: 23
Views: 5417

On a slightly tangential note, I'm amazed at the way Mastercard has gone up and up--it's the only part of my fun money portfolio that has done better than the market.

As for Google, sure it may (or may not be) overvalued, but it is consistently making lots of money--it's dominating the online advertising business (though Microsoft et al. are trying to make inroads). This isn't one of those startups that is still waiting to turn a profit. Google's profits and profit margins are huge. Again, who knows if it's too expensive or not, but dismissing it completely out of hand is, I think, a mistake.
by Kevinm1986
Tue Oct 23, 2007 9:15 am
Forum: Investing - Theory, News & General
Topic: CNNMoney: College costs keep rising
Replies: 82
Views: 18872

It seems like we have this debate once a month. So if I'm repeating myself, I apologize. Why any good student would pay more than they have to and rack up debt to go to college (or why their parents would pay for it) astounds me. I got a full scholarship to one of the top ten regional universities in the south for my undergraduate degree and for my master's degree (which I'm currently working on) I got a full scholarship plus a teaching assistant stipend at one of the top 50 national universities. (Disclaimer: college rankings are full of crap.) But if I hadn't gotten full scholarships, I'd have been at a state school (fortunately, Louisiana has a program that lets students with even half-decent GPA's and ACT scores go to college for free)....
by Kevinm1986
Sun Oct 14, 2007 10:08 pm
Forum: Investing - Theory, News & General
Topic: Article on TSP from Washington Post
Replies: 9
Views: 3685

The thought of people having access to the TSP and not investing in it makes me a little bit sick to my stomach.
by Kevinm1986
Sun Oct 14, 2007 9:54 pm
Forum: Personal Investments
Topic: which portfolio is better
Replies: 8
Views: 3017

First of all, are you comfortable with just 20% in bonds? That seems awfully low for someone your age.

Second, if you want something more complicated than a 3-fund portfolio, you could do better than that eight fund portfolio. If you want to tilt to value, fine; but if you don't want to tilt to value, don't buy separate value and growth funds, just buy a total market fund. If you want to tilt small (but not value), I'd suggest buying Total Stock Market and Small-Cap Index (or Tax-Managed Small Cap, perhaps). And if you want to tilt to small and value, buy TSM and Small Value.

Also, I'd stay away from Total International in a taxable account. Vanguard's FTSE ex-US fund would be better.
by Kevinm1986
Thu Oct 11, 2007 2:55 pm
Forum: Personal Investments
Topic: Building a core for a 22 year old
Replies: 6
Views: 2418

teege wrote:That's definitely an interesting index fund. I can look into that. The min buy-in is a bit more than I have right now, unfortunately.
Buy-in? Leave the gambling for the poker table, eschew active funds, and get yourself a Vanguard Target Retirement Fund.
by Kevinm1986
Thu Oct 11, 2007 2:52 pm
Forum: Investing - Theory, News & General
Topic: The Savings Rate
Replies: 75
Views: 31243

Excellent post, especially the latte factor. It amazes me how some people get so silly with little food costs. I was talking to one of my fellow grad students the other day and he mentioned that it was such a great deal to buy a Domino's pizza for $5 because he'd get two meals out of it-$2.50 a meal. I told him a peanut butter & jelly sandwich (my lunch of choice) probably costs less than a quarter.
by Kevinm1986
Wed Oct 10, 2007 9:45 am
Forum: Personal Finance (Not Investing)
Topic: Do Diehards prefer PC or Mac laptops?
Replies: 109
Views: 28061

I've been happy with my 13" MacBook (it's about a year old). I had a Powerbook G4 before that, and unfortunately it broke when it was a little over three years old. Unless you absolutely need it, I see no reason to get a MacBook Pro over a MacBook if money is an issue. Sure a bigger screen is nice, but it's hardly worth $500.

I'm a diehard (pun intended) Mac fan, but I can understand why people don't want to pay extra for a Mac.
by Kevinm1986
Thu Oct 04, 2007 10:43 pm
Forum: Investing - Theory, News & General
Topic: How and why do you use credit cards.
Replies: 106
Views: 30298

Nitsuj wrote:
Kevinm1986 wrote: Sometimes credit cards are more of an inconvenience. At my former university the convenience store took cash, credit card, or the school's express card. The express card was simple--one swipe. Cash took a little longer, but not much. Credit cards, on the other hand, required the cashier to swipe the card, wait for the receipt, hand the receipt to the customer, and wait for the customer to sign it. What a pain for anyone standing behind a credit card user.
Did they take cheques?
I don't believe they did--at least, I never saw anyone try.
by Kevinm1986
Thu Oct 04, 2007 10:07 pm
Forum: Investing - Theory, News & General
Topic: How and why do you use credit cards.
Replies: 106
Views: 30298

Gekko wrote:so all of you old codgers who insist on fumbling/paying with old fashioned paper and coins in the checkout line and holding up and slowing down everyone else behind you better get with the program.

http://www.youtube.com/watch?v=V-L5QGllGfU
Sometimes credit cards are more of an inconvenience. At my former university the convenience store took cash, credit card, or the school's express card. The express card was simple--one swipe. Cash took a little longer, but not much. Credit cards, on the other hand, required the cashier to swipe the card, wait for the receipt, hand the receipt to the customer, and wait for the customer to sign it. What a pain for anyone standing behind a credit card user.
by Kevinm1986
Sat Sep 15, 2007 3:32 pm
Forum: Personal Investments
Topic: Seeking very simple yet agressive and diversified IRA
Replies: 11
Views: 3167

What's the point of this money? Is it for her to spend should she need it in the very distant future? Does she want to donate it to charity when she dies? Or is this essentially your (and your siblings', if you have any) money?

There's no way to make a suggestion without knowing the purpose the money will be used for.
by Kevinm1986
Tue Sep 11, 2007 9:05 am
Forum: Personal Finance (Not Investing)
Topic: Refusing to pay a bill
Replies: 20
Views: 7720

I'd say give them the $100 and tell them to (insert your favorite offensive comment here). Even if you have a 100% of succeeding, if you spend 20 hours on this you aren't making minimum wage.

Of course, if you enjoy dragging them around, then by all means do so. But ask yourself, "Is this how I want to be spending my time?"
by Kevinm1986
Thu Sep 06, 2007 7:23 pm
Forum: Personal Investments
Topic: IRA eligbility/earned income question
Replies: 1
Views: 1134

IRA eligbility/earned income question

I'm currently a grad student and teaching assistant. I receive a full scholarship (non-taxable) and a stipend as payment for my teaching assistant duties. I know the stipend money is taxable income. My question is whether it counts as earned income for the purposes of an IRA. The applicable IRS publication says that you have to look at your W-2 and see what box the money is listed in to see if it's earned income or not. But I got my first paycheck and I had federal and state withholding, plus FICA OASDI and HI taken out. Is it safe to assume that the FICA shows that it's earned income? I'd like to get money into my Roth IRA now rather than waiting until next spring for a W-2 to make a 2007 contribution.

Thanks,
Kevin
by Kevinm1986
Thu Sep 06, 2007 7:15 pm
Forum: Personal Finance (Not Investing)
Topic: OT: Deaths in Car Accidents per Mile Driven
Replies: 6
Views: 2649

From espn.com's Page 2 and Tuesday Morning Quarterback by Gregg Easterbrook:
Measured per million miles traveled, the fatality rate for passenger cars has been declining for three decades on an almost annual basis, from 3.68 in 1975 to 1.55 in 2005, the 2005 number being the lowest fatality rate ever. The light truck (pickups and SUVs) fatality rate has declined steadily, from 4.23 in 1975 to 2.01 in 2005....Now look at the motorcycle numbers. After declining till the early 1990s, the motorcycle fatality rate has begun to skyrocket -- from 21.43 in 1997 to 43.22 in 2005.
by Kevinm1986
Wed Aug 29, 2007 7:31 pm
Forum: Investing - Theory, News & General
Topic: "Index funds with low fees don't work"?
Replies: 14
Views: 4443

Index funds with low fees don't work...

...for brokers.
by Kevinm1986
Tue Aug 14, 2007 8:15 pm
Forum: Personal Finance (Not Investing)
Topic: Does early retirement lead to premature decline & brain
Replies: 22
Views: 7361

It's an interesting question, but I think that the cause and effect is probably the other way around. My gut instinct says that people who retire early (or even at the usual 65-or-so age) are probably less healthy (and less happy) than people who love their jobs so much that they keep working at 80 even though they have the means to retire.
by Kevinm1986
Tue Aug 07, 2007 7:42 pm
Forum: Personal Investments
Topic: Dividends and Capital Gains - Reinvest or to another acct?
Replies: 6
Views: 2891

The advice is given for taxable accounts because it's easier to rebalance, and because it makes less of a tax headache (fewer small lots bought with dividends). It's also possible that if you sold some shares to capture a capital loss and then had dividends automatically reinvested, you would have a wash sale and mess up your tax benefits. However, all these benefits are fairly small as long as you're vigilant about checking up on your portfolio. I personally assume that the benefits of getting dividends straight back into the market should outweigh the potential ease of rebalancing and risk of minor tax complications. However, if one has taxable accounts (but no new money going in), it may be worthwhile to use a money market fund so that r...
by Kevinm1986
Sun Jul 01, 2007 8:45 am
Forum: Personal Investments
Topic: Do you own Berkshire Hathaway? (BRK.B)
Replies: 33
Views: 14180

Re: Do you own Berkshire Hathaway? (BRK.B)

2. the track record is extraordinary. So far out on the right tail of probability outcomes as to be almost unimaginable. I think the reason for that has a lot to do with 1, the way they manage their investments and their portfolio companies. It also has to do with Warren Buffet and Charlie Munger. But to play devil's (or diehard's) advocate, if 10,000 monkeys flip coins, some of them are bound to get heads quite a few times in a row. And no matter what, one of them will beat all the others. So the question is, is Berkshire Hathaway a brilliantly-run company or the offspring of the luckiest of coin-flippers? I'm not saying I hold that view myself. I think what Buffett says makes a lot of sense. The fun money in my portfolio I try to invest ...
by Kevinm1986
Wed Jun 06, 2007 9:43 am
Forum: Investing - Theory, News & General
Topic: Why not a 115% Equity Portfolio?
Replies: 60
Views: 24162

There's no way I could see myself taking out a loan just to invest. But if I had student loans (which I don't) at a very low cost, I wouldn't feel bad about not paying them off and investing in stocks instead. I don't have a house, either, but again, if the interest rate were fairly low, I wouldn't object to investing in stocks either.
by Kevinm1986
Wed Jun 06, 2007 12:32 am
Forum: Investing - Theory, News & General
Topic: What is the best way to value tilt a portfolio?
Replies: 41
Views: 31055

I use TSM + SV for my domestic equity holdings. TSM gives me what the S&P 500 gives me while also giving me the entire US market; SV lets me tilt to small and value simultaneously. My main reason for using fewer funds is to get to Admiral status sooner (although, alas, there are no Admiral shares for Small Value, just an ETF class).
by Kevinm1986
Fri Jun 01, 2007 12:15 pm
Forum: Investing - Theory, News & General
Topic: Is Fundamental Indexing superior to Cap Weighted indexing?
Replies: 107
Views: 50574

It's interesting that a fundamental index can consistently manage to outperform both a cap-weighted (i.e. growthier) fund and a value fund simultaneously. It certainly seems like it should be possible to combine a value fund and a total market cap-weighted fund and have them perform compaably to a fundamental index, but perhaps it isn't.

Nevertheless, until Vanguard offers a fundamental index for 30 bp or so, I ain't buying.
by Kevinm1986
Fri Jun 01, 2007 10:15 am
Forum: Investing - Theory, News & General
Topic: Is Fundamental Indexing superior to Cap Weighted indexing?
Replies: 107
Views: 50574

I just view it as value tilting under another name. And I'd rather just own a normal, cap-weighted value index fund than a fundamentally-weighted broad market fund.
by Kevinm1986
Thu May 31, 2007 6:43 pm
Forum: Investing - Theory, News & General
Topic: Who is your financial Idol?
Replies: 44
Views: 18909

John C. Bogle has to be number one. He pioneered two important things: index investing and low-cost mutual funds. Using low-cost index funds will do far more for my wealth than anything else, so Bogle is number one on my list. Without him, we may never have had either--that's quite a scary thought.
by Kevinm1986
Thu May 31, 2007 1:27 pm
Forum: Personal Investments
Topic: which fund to start with in taxable investing?
Replies: 13
Views: 6080

darko wrote:
Kevinm1986 wrote:One idea would be to max out any 401k ... before starting a taxable account.
This is indeed the case if you are investing for retirement or another goal in some distant future. But if you need money in a few years, say for a downpayment on your home, then you can't "lock" that money into 401k.
You don't want it "locked" into a 401k, but you can withdraw from a Roth. So you could increase 401k contributions to offset the fact that you plan to withdraw from your Roth later.
by Kevinm1986
Thu May 31, 2007 12:12 am
Forum: Personal Investments
Topic: which fund to start with in taxable investing?
Replies: 13
Views: 6080

One idea would be to max out any 401k/Roths available to you before starting a taxable account. The Roth contributions can always be withdrawn without penalties or taxes (and there's an additional provision for withdrawing money to put toward a house), so that can go towards a house (it could even be an emergency fund, too). The downside is losing the great benefit of a Roth--no taxes, but from one point of view, it's better to have the money avoiding taxes, even if just for a few years, than in a taxable account. Then, of course, there's the whole buying vs. owning a house debate. If buying a house will be better for you financially, would you really want to put it off for several years if the stock market doesn't fare well? The question I...
by Kevinm1986
Fri May 25, 2007 12:00 am
Forum: Investing - Theory, News & General
Topic: Voyager status
Replies: 14
Views: 5910

Eureka wrote:Vanguard just thinks that people with larger amounts invested in funds deserve a break on their expense ratios. It's a good thing! Vanguard Investor share expense ratios are good. Vanguard Voyager share expense ratios are better.
Admiral shares are classes of mutual fund shares. Voyager only refers to having a certain total amount at Vanguard, while Admiral shares are available to people with a certain amount of money in a specific fund.
by Kevinm1986
Thu May 24, 2007 8:50 pm
Forum: Personal Investments
Topic: Small value in a taxable account
Replies: 14
Views: 7664

FWIW I'm in the non-ETF Vanguard Small Value, but even then I don't think I'm losing enough in tax efficiency to erase the value premium.
by Kevinm1986
Thu May 24, 2007 6:43 pm
Forum: Personal Investments
Topic: Small value in a taxable account
Replies: 14
Views: 7664

Small value in a taxable account

I know that small value isn't terribly tax efficient, and it's best in tax-deferred accounts, if possible. But I had never seen anything quite as cut and dry as Laura's comment in the "questions for the experts" thread: In my opinion it is not worth holding small value in taxable. You can go for the small tilt with Tax Managed Small Cap but skip the value part unless you can hold it in a tax advantaged account. Taylor Larimore then said that he agreed with Laura's opinion about small value, although he suggested Total Stock Market in lieu of either Small Value or TM Small Cap (VTMSX). I figured I'd start a new thread rather than clutter that one up. It seems pretty clear to me that the general Diehard consensus (including Laura an...
by Kevinm1986
Thu May 24, 2007 2:49 pm
Forum: Investing - Theory, News & General
Topic: Simplicity vs. Risk of using a single investement account
Replies: 12
Views: 4070

I seriously doubt any reputable, major company (including any of the four you list) would say "Tough luck" if you're a victim of fraud. There would be way too much negative publicity. And really, would you be that much better off if only half of your money were robbed? You'd be mighty upset whether it was everything or a half. To get to the point where you'd be able to shrug off any single loss you'd probably want 6-10 different accounts. And that would be a pain to deal with it.
by Kevinm1986
Mon May 21, 2007 6:37 pm
Forum: Personal Investments
Topic: House: To Buy or Not to Buy
Replies: 30
Views: 12162

ajbibi wrote:We're moving to a place where prices are a bit on the high side and may see a slow slide in the next few years. But the truth is, I can ride out a big drop in housing prices. I'd just feel really ticked off I suppose.
But remember: a house whose value drops $100k, $200k, $300k overnight in a housing collapse is still just as nice as it was the day before. You don't have any interest in selling the house any time soon, so why not buy if it's within your means?
by Kevinm1986
Mon May 21, 2007 4:37 pm
Forum: Personal Investments
Topic: Help with my portfolio...
Replies: 15
Views: 4436

It looks like you're in fantastic financial shape. You've done a great job building a Boglehead portfolio. A few things: 1. There's no need to have both VFINX and VTSMX. They behave very similarly. I would suggest getting rid of the VFINX and converting it to either VTSMX or another fund. VTSMX includes more stocks and should have less turnover. 2. If it fits with your asset allocation, try to hold as few funds as possible in each account. For example, you could put your husband's rollover entirely into VTSMX, and it would bring him above the $50k threshhold for Admiral status once he has had the fund for ten years. Consolidating makes it easier to get to Admiral status and its lower expense ratios. 3. Decide what percentage of stocks/bonds...
by Kevinm1986
Sun May 20, 2007 2:40 pm
Forum: Personal Investments
Topic: Grandma may be getting cheated, but should I do something?
Replies: 22
Views: 7823

If she says "No thanks," and she's got plenty enough to live on, then I think you pretty much have to butt out. Yes, it's entirely possible that her money is being managed irresponsibly, damaging either you and your family's future inheritance or money she could donate to charity when she dies. But if she's of sound mind, you just need to step out of the way.
by Kevinm1986
Sun May 20, 2007 12:47 pm
Forum: Personal Investments
Topic: Placement of funds in ROTH vs Traditional IRA vs. 403b7
Replies: 33
Views: 12738

One thing to consider with Roths vs. 403b's, traditional IRA's, and the like is that you've already paid taxes on the Roth, but you still have to pay taxes on the non-Roth. That is, $1000 in a Roth is worth more than $1000 in a 403b. If you withdraw that $1000 from your 403b and you're in the 25% tax bracket, you're really only getting $750. So what you thought was an even split between two different accounts isn't even. Apart from that, I'm pretty sure the conventional wisdom is to put the higher-returning funds into Roths, since you want that money to grow as quickly as possible since it won't be taxed again. So if I had the opportunity, I would try to have stocks in a Roth rather than a 403b. Of course, depending on the choices you have ...
by Kevinm1986
Sat May 19, 2007 2:51 am
Forum: Personal Investments
Topic: IRA for newborn
Replies: 20
Views: 7739

FWIW, while I've never tried to pass off chores and the like as earned income, I do work for various theatre companies, and I mostly get paid in a quasi-under-the-table fashion. I believe the threshhold for companies to have to send out a 1099 is $600, and I only had one company pay me that much (and they did send me one), though I have check stubs for the others. I also recently was paid $600 in cash. I think my employers thought they were doing me a favor by letting me avoid reporting it--but I want all the earned income I can get! As far as I can tell the IRS has no qualms with what I'm doing--I'm required to report income, even if there's no paper trail, and it meets the definition of earned income (thus it is IRA-eligible). I've been t...
by Kevinm1986
Wed May 16, 2007 10:52 pm
Forum: Personal Investments
Topic: What to do with this money?
Replies: 13
Views: 5006

Why not go into SV and REIT right away? You won't be at your target, but having 2% of either is closer than having 0%.
by Kevinm1986
Wed May 16, 2007 10:12 pm
Forum: Investing - Theory, News & General
Topic: Managed Funds - How do investors still justify using them?
Replies: 51
Views: 25514

Re: A good reason to index

Wick1 wrote:Since aproximately only 20% of active mangers beat the index, and the 20% is not always the same, why would a knowledgeable investor pick one of the boxes with an unknown amount inside?

Regards,
Wick
My portfolio is all indexed (except for less than 5% fun money), but this is a bit of an unfair comparison. I'm sure that if you only pick active funds with an expense ratio below, say, 60 bp, and with turnover less than 25% or so, your chances will be much better than 20%. Maybe not 50%, but certainly more than 20%. I for one would much rather a low-cost active fund over a high-cost index fund.
by Kevinm1986
Wed May 16, 2007 9:08 pm
Forum: Investing - Theory, News & General
Topic: The Economist: Gored by the bull
Replies: 15
Views: 5418

Hello Kevin, Funny you write that. I went to a Catholic school, and the theology department was liberal...and the philosophy department very conservative. (I don't like using these terms, they tend to obscure things as much as they clarify but...) Perhaps, there was a similar phenomenon at your school, just a different contrast, one between the social justice emphasis in the theology department and the free market emphasis in the economics department. I consider myself an Austrian Economists fan, but I do not agree with the extreme anarcho-capitalist version of Murray Rothbard. I appreciate his pure economic theory, but find his political social thought to be a bit too apriorist, to quote Henry Hazlitt's critique of Dr. Rothbard. Just thou...
by Kevinm1986
Wed May 16, 2007 8:42 pm
Forum: Investing - Theory, News & General
Topic: The Economist: Gored by the bull
Replies: 15
Views: 5418

mlebuf wrote:Please keep in mind that most economists are closet socialists. To be sure, there are those from the Chicago school and others who are strong advocates of free enterprise. But my observation is that they are more the exception than the rule.

Best wishes,
Michael
Well, I went to a very liberal Catholic university and the economics professors were extremist Austrian school libertarians. Go figure.
by Kevinm1986
Wed May 16, 2007 9:19 am
Forum: Personal Investments
Topic: Does Vanguard withhold federal taxes?
Replies: 7
Views: 4240

No, unless you're not a U.S. citizen (maybe U.S. resident?) or unless you're subject to backup withholding.
by Kevinm1986
Tue May 15, 2007 11:17 am
Forum: Personal Investments
Topic: Tax-Managed Index Funds
Replies: 13
Views: 5598

Thank you all for your prompt and informative replies. I completely understand why tax-managed funds lower the income tax and how that is important to long-term returns. I am probably missing something basic, but I still don't understand why the distribution is bad if you are only taxed on a percentage of it. Maybe an example will help illustrate where my thinking goes wrong. Suppose you invest $100 in a tax-managed fund that tracks the S&P 500. The S&P 500 goes up 10% in one year, so now you have $110. Now suppose you invest $100 an S&P 500 index fund. The S&P 500 goes up 10% in one year, so now you have $110. Over the year, you also get a $1 distribution from the fund, which you do not immediately reinvest. The $1 is taxe...
by Kevinm1986
Mon May 14, 2007 4:44 pm
Forum: Personal Investments
Topic: Boglehead newbie with beginning investing questions
Replies: 32
Views: 12511

Re: Boglehead newbie with beginning investing questions

B185CS wrote:You probably only need VBMFX plus either VFINX or VGTSX. There is a lot of overlap between VFINX and VGTSX so having both would be somewhat redundant. And you wouldn't be as diversified as you might think you are.
There isn't any overlap between the 500 Index and Total International.
by Kevinm1986
Mon May 14, 2007 4:43 pm
Forum: Personal Investments
Topic: Boglehead newbie with beginning investing questions
Replies: 32
Views: 12511

Max out your 401k. Does your wife have a 401k? Max that out too. And fund Roths for you and your wife. All told, that's about $40k a year. Hopefully you can afford that on a joint $100k income. If not, you're probably spending too much money. What funds to recommend depends on what's available to you. You're basically stuck with whatever choices you have in your 401k's; so you want to cherry-pick the best funds there and then use Roths and taxable accounts to fill in the rest. List them all if possivble. If you have too many funds to list, at least list the cheapest ones available, as well as any index options. To open a Roth, go straight to Vanguard's site and open it with them. You don't need to use a broker. One important thing is to loo...
by Kevinm1986
Sat May 12, 2007 6:17 pm
Forum: Personal Investments
Topic: Fresh start personal finance advice
Replies: 22
Views: 7311

My advice: 1. Live below your means and save as much as possible. 2. Invest in low cost mutual funds. There's nothing wrong with having some "fun money"--about 5% of my portfolio is in individual stocks--but limit it to 5% at most. Everything else should be in a well-diversified group of mutual funds. As soon as you start working, you should examine the 401k options you have and any other investment perks your company offers (company stock, etc.). Then come back and post your 401k options and we can help point you in the right direction. Definitely max out your 401k and start a Roth IRA and max that too. Also, I heartily second the recommendation to read the Bogleheads' Guide. I'm sure you'll enjoy it and learn a lot from it. Kevi...
by Kevinm1986
Tue May 08, 2007 9:35 pm
Forum: Investing - Theory, News & General
Topic: Diversifying Power of Longer Term US Treasuries
Replies: 59
Views: 38579

Correct me if I'm wrong: in a nasty bear market, interest rates go down, so long term bonds benefit more than short term bonds. And all bonds benefit because people run from stocks in a panic.

I guess this is an argument for longer term bonds, but the risk is that interest rates will skyrocket at some later date, making the bonds go down in price. There's always a trade-off, isn't there? ;)