Search found 3404 matches

by Aptenodytes
Sun Feb 07, 2016 2:59 pm
Forum: Investing - Help with Personal Investments
Topic: Dollar Cost Averaging and Re-balancing
Replies: 6
Views: 309

Re: Dollar Cost Averaging and Re-balancing

It is hard to know exactly what's going on without seeing the the relative size of the flows and balances, but it sounds like you are doing two things at once -- moving money in and out of a taxable account, and rebalancing. The rebalancing thing seems OK. But I'm wondering about the merits of movin...
by Aptenodytes
Sat Feb 06, 2016 6:15 pm
Forum: Investing - Help with Personal Investments
Topic: Looking to rebalance, would love some advice
Replies: 10
Views: 559

Re: Looking to rebalance, would love some advice

If you don't mind a little guidance, it would help if you stepped back a bit and focused on what your core question is. From the kind of information you are summarizing, the question could be something like "am I saving enough for retirement?" "what is a good asset allocation for me?&...
by Aptenodytes
Fri Feb 05, 2016 8:55 am
Forum: Investing - Help with Personal Investments
Topic: Tilting towards oil
Replies: 18
Views: 1123

Re: Tilting towards oil

I am always intrigued by a possible sure thing, and once long ago tried to make a killing based on a prediction regarding oil prices. I did the quickest empirical investigation I could think of, and compared monthly price movements in the XLE ETF you identified and USO. USO tries to track oil prices...
by Aptenodytes
Tue Feb 02, 2016 3:54 pm
Forum: Personal Consumer Issues
Topic: Alternative to Briggs & Riley Luggage
Replies: 33
Views: 2079

Re: Alternative to Briggs & Riley Luggage

You don't say what the source of your hesitation is with Briggs and Riley. Do you think there might be something just as good, or close, that is cheaper? Are you worried that people will think you are a snob? Can you not afford it regardless of how good it is? If it isn't that are worried about look...
by Aptenodytes
Mon Feb 01, 2016 3:29 pm
Forum: Investing - Help with Personal Investments
Topic: How to compare "Yields" between bond fund and bond ladder?
Replies: 14
Views: 672

Re: How to compare "Yields" between bond fund and bond ladder?

You don't use a bond ladder to boost yields. You use it to guarantee a particular sequence of cash flow. If all you care about is yields, you should be investing in bond funds. In general, the difference in yield will be a function of the difference in durations. It will be unlikely that any one bon...
by Aptenodytes
Sun Jan 31, 2016 5:53 pm
Forum: Personal Finance (Not Investing)
Topic: Excess SEP-IRA contribution (self-employed)
Replies: 5
Views: 238

Re: Excess SEP-IRA contribution (self-employed)

Thanks, Paddymac and Alan S. Very useful suggestions. I can more clearly see paths out of the swamp than I did before.
by Aptenodytes
Sun Jan 31, 2016 5:04 pm
Forum: Investing - Theory, News & General
Topic: Calculating expense ratio with multiple funds
Replies: 20
Views: 942

Re: Calculating expense ratio with multiple funds

It's the same process, but I think that calculating the holding weight just adds an unnecessary step. 1. Just multiply the balance in each holding by that holding's ER. 2. Add up the answers. 3. Divide by your total portfolio value. That only works if each holding is in a separate fund. If you're o...
by Aptenodytes
Sun Jan 31, 2016 4:36 pm
Forum: Personal Finance (Not Investing)
Topic: Excess SEP-IRA contribution (self-employed)
Replies: 5
Views: 238

Re: Excess SEP-IRA contribution (self-employed)

I made the contributions throughout 2015, more or less monthly.
by Aptenodytes
Sun Jan 31, 2016 4:21 pm
Forum: Investing - Theory, News & General
Topic: Calculating expense ratio with multiple funds
Replies: 20
Views: 942

Re: Calculating expense ratio with multiple funds

jhfenton wrote:It's the same process, but I think that calculating the holding weight just adds an unnecessary step.

1. Just multiply the balance in each holding by that holding's ER.
2. Add up the answers.
3. Divide by your total portfolio value.

You did better in algebra than I did.
by Aptenodytes
Sun Jan 31, 2016 2:11 pm
Forum: Investing - Theory, News & General
Topic: Calculating expense ratio with multiple funds
Replies: 20
Views: 942

Re: Calculating expense ratio with multiple funds

You need to summon the power of your middle school algebra training. The ER of your portfolio is a weighted average of the ERs of the funds in your portfolio. 1) For each account, divide the account total but the portfolio total to get a weight for that portfolio. 2) For each account, multiply the E...
by Aptenodytes
Sun Jan 31, 2016 1:36 pm
Forum: Personal Finance (Not Investing)
Topic: Excess SEP-IRA contribution (self-employed)
Replies: 5
Views: 238

Excess SEP-IRA contribution (self-employed)

I searched both this forum and the internet but can't figure out what my options are, so I'm looking for help. 1) I contributed too much to my SEP-IRA , at Fidelity, for my on-the-side consulting business, for 2015. 2) Fidelity doesn't get involved in rectifying such situations for SEP-IRAs. 3) The ...
by Aptenodytes
Sun Jan 31, 2016 1:28 pm
Forum: Personal Finance (Not Investing)
Topic: WSJ: HSAs Offer Tax Benefits Beyond 401(k)s
Replies: 21
Views: 3343

Re: WSJ: HSAs Offer Tax Benefits Beyond 401(k)s

One should not look only to the tax benefits of the HSA. There are drawbacks to HDHPs. The tax benefits of the HSA may be there, but the HDHP one needs to have to open and contribute to an HSA often has much higher out of pocket costs than traditional plans. Unless you never see a doctor and don't ...
by Aptenodytes
Sun Jan 31, 2016 9:55 am
Forum: Personal Consumer Issues
Topic: Replacing timing belt on 2009 Accord(Do it or sell?)
Replies: 66
Views: 3393

Re: Replacing timing belt on 2009 Accord(Do it or sell?)

For what its worth, I sold two used cars in the last few years, both over 100k miles and both having the catastrophic-fail timing belts you are supposed to replace before 100K miles. One I had changed the timing belt on and the other I had not. I disclosed everything to prospective buyers and I had ...
by Aptenodytes
Thu Jan 28, 2016 8:31 am
Forum: Investing - Theory, News & General
Topic: Entire Portfolio Expense Ratio
Replies: 41
Views: 2019

Re: Entire Portfolio Expense Ratio

.17%

Half my holdings are in a 403b that doesn't have access to admiral funds. 15% are in TIAA TRAD which has no visible ER.
by Aptenodytes
Wed Jan 27, 2016 5:40 pm
Forum: Investing - Help with Personal Investments
Topic: How to implement a glide path
Replies: 37
Views: 2062

Re: How to implement a glide path

The OP is not modeling the Target Date funds. Actually I am. They start gliding from 25 years before the target date from 90:10 to 50:50 at a rate of 1.6% per year, then continue adjusting for 7 years past the target date (I don't recall the exact rate of change right now). I think the idea of doin...
by Aptenodytes
Wed Jan 27, 2016 5:17 pm
Forum: Personal Finance (Not Investing)
Topic: Who came closest to a $0 [taxes due]?
Replies: 62
Views: 3638

Re: Who came closest to a $0 [taxes due]?

The opportunity cost of having the government get its interest-free loan from me is way to small to worry about. I have a very simple rule when it comes to withholding, which is have as much withheld as last year's tax obligation. If I did that as a CFO in the private sector I'd be fired. But it wor...
by Aptenodytes
Wed Jan 27, 2016 4:04 pm
Forum: Investing - Theory, News & General
Topic: Rebalancing, another study
Replies: 94
Views: 7336

Re: Rebalancing, another study

Apologies if this has been pointed out already, but isn't there a contradiction between their "direct all dividends, contributions and withdrawals toward rebalancing" maxim and their "don't shoot til you see the whites of their 3% drift" maxim? The first has you nudging the portf...
by Aptenodytes
Wed Jan 27, 2016 1:39 pm
Forum: Investing - Help with Personal Investments
Topic: How to implement a glide path
Replies: 37
Views: 2062

Re: How to implement a glide path

I like the 5% every few years approach. Just pick a date and do it. The ups and downs of the market may handle some of that for you, so I would also be inclined to set bands in the 3% to 5% range and rebalance with a future AA in mind. Less than 2%, as you propose, is just noise. It is not a meanin...
by Aptenodytes
Wed Jan 27, 2016 1:27 pm
Forum: Investing - Help with Personal Investments
Topic: How to implement a glide path
Replies: 37
Views: 2062

Re: How to implement a glide path

I like the 5% every few years approach. Just pick a date and do it. The ups and downs of the market may handle some of that for you, so I would also be inclined to set bands in the 3% to 5% range and rebalance with a future AA in mind. Less than 2%, as you propose, is just noise. It is not a meanin...
by Aptenodytes
Wed Jan 27, 2016 9:43 am
Forum: Investing - Help with Personal Investments
Topic: How to implement a glide path
Replies: 37
Views: 2062

Re: How to implement a glide path

We are doing exactly what you describe. We do this by modeling our entire portfolio on the Vanguard 2035 Target Date Fund (TDF). That fund ends up at 50/50 at the target date. We rebalance every quarter because the TDF adjusts its allocations for its glide path quarterly. I think we'll just start d...
by Aptenodytes
Wed Jan 27, 2016 8:02 am
Forum: Investing - Help with Personal Investments
Topic: How to implement a glide path
Replies: 37
Views: 2062

Re: How to implement a glide path

Well first I'd say that age 40 is too young to be sliding down a glide path like that. Look at the target date funds which I think have a better approach. Second, I think you are mixing up two things. The AA shifts according to your glide path, 1.6% per year or 1.6/12% per month or 1.6/365% per day....
by Aptenodytes
Wed Jan 27, 2016 7:51 am
Forum: Investing - Help with Personal Investments
Topic: Defined cash benefit plans. How to classify in AA and realistic expectations for returns
Replies: 7
Views: 391

Re: Defined cash benefit plans. How to classify in AA and realistic expectations for returns

Who makes the catch up contributions? The employee? Those catch up contributions are considered part of the return? It sounds like the plan assumes a kind of pyramid effect, but I can't tell from the description. Normally a plan like this can guarantee such rates only if a third party foots the bill...
by Aptenodytes
Tue Jan 26, 2016 5:56 pm
Forum: Investing - Theory, News & General
Topic: At what point would you go from 70/30 to 100(stocks)/0(bonds) if you are in your late twenties
Replies: 48
Views: 3378

Re: At what point would you go from 70/30 to 100(stocks)/0(bonds) if you are in your late twenties

If we are charitable we can interpret the OP's question as "should I adjust my AA based on big changes in the market?" While I don't recommend that the OP do this, it would be going to far to say that a strategy of dynamically adjusted asset allocation is ipso facto contrary to boglehead p...
by Aptenodytes
Tue Jan 26, 2016 10:19 am
Forum: Investing - Theory, News & General
Topic: At what point would you go from 70/30 to 100(stocks)/0(bonds) if you are in your late twenties
Replies: 48
Views: 3378

Re: At what point would you go from 70/30 to 100(stocks)/0(bonds) if you are in your late twenties

In my view you shouldn't be contemplating such a strategy without committing the time and effort to figuring it out for yourself. If you want to adjust your AA as valuations change, there are things to read. I doubt anyone here would give you a simple rule of thumb you could follow. If they did, you...
by Aptenodytes
Tue Jan 26, 2016 8:07 am
Forum: Personal Finance (Not Investing)
Topic: Did the bears eat my retirement? - Sequence of Returns Risk
Replies: 70
Views: 5903

Re: Did the bears eat my retirement? - Sequence of Returns Risk

This is tricky. Logically you are supposed to ignore what has happened to your portfolio over the past month and adopt the most appropriate AA for your circumstances. Emotionally that can be extremely hard to do. Your advisor is irresponsible in choosing to explain sequence of returns risk to you no...
by Aptenodytes
Tue Jan 26, 2016 7:52 am
Forum: Investing - Help with Personal Investments
Topic: Best way to invest Traditional IRA funds when not contributing
Replies: 9
Views: 660

Re: Best way to invest Traditional IRA funds when not contributing

To augment what retiredg said, privilege stock funds in topping off the Roth IRA. That is, try to keep bonds in the 401k and tIRA. In 10-15 years or so you can start making your Roth more conservative in order to protect those tax-free holdings, if you want.
by Aptenodytes
Sun Jan 24, 2016 5:02 pm
Forum: Investing - Help with Personal Investments
Topic: where to move an inherited IRA
Replies: 20
Views: 1014

Re: where to move an inherited IRA

Thank you all again for your time and suggestions. I know I am really top-heavy with stocks. I guess I am in a flux right now and am thinking of going back to work full time or working more than I do now. So I thought staying aggressive with more stock allocations would be OK, especially if I conti...
by Aptenodytes
Sun Jan 24, 2016 12:00 pm
Forum: Investing - Theory, News & General
Topic: When will Value outpeform Growth?
Replies: 62
Views: 5053

Re: When will Value outpeform Growth?

I tend to translate research into easy-to-follow rules of thumb, and the way I've done that for this debate is to say "if you are going to tilt, tilt to small-value." So I no longer consider tilting to either value or growth -- I do keep an ear to the ground to know what the research is tu...
by Aptenodytes
Sun Jan 24, 2016 11:35 am
Forum: Personal Consumer Issues
Topic: Donating a retired computer with financial info on it
Replies: 27
Views: 2061

Re: Donating a retired computer with financial info on it

For personal computers I am disposing of, I destroy the hard drives. Sometimes I have to return a work laptop to an office pool (after it needs replacing for my daily use, but is still valuable for other purposes), and in those cases I use DBAN to wipe those drives first.
by Aptenodytes
Sun Jan 24, 2016 12:51 am
Forum: Investing - Help with Personal Investments
Topic: where to move an inherited IRA
Replies: 20
Views: 1014

Re: where to move an inherited IRA

Are you saying that the OP should use his taxable account to supplement his living expenses in retirement? Or his Roth IRA? If it is to be his tIRA, including his inherited IRA, then I’m having trouble seeing that he should minimize their growth. I don't know what other accounts the OP has or what ...
by Aptenodytes
Sun Jan 24, 2016 12:46 am
Forum: Investing - Help with Personal Investments
Topic: where to move an inherited IRA
Replies: 20
Views: 1014

Re: where to move an inherited IRA

Aptenodytes, I see what you’re saying, but I don’t think it holds as a generalized principle. Perhaps if the beneficiary is still in the accumulation phase of investing for retirement, there’s justification. If the beneficiary is in their de-accumulation phase, the RMD’s can be a welcome addition t...
by Aptenodytes
Sat Jan 23, 2016 6:57 pm
Forum: Investing - Help with Personal Investments
Topic: where to move an inherited IRA
Replies: 20
Views: 1014

Re: where to move an inherited IRA

It does matter that you must withdraw the RMD/MRD each year, if you want to eke out the maximum overall position upon retirement. If you want to manage the inherited IRA so as to end up with the highest total portfolio, you want to put your lowest-return assets in the inherited IRA, so that the acc...
by Aptenodytes
Sat Jan 23, 2016 4:07 pm
Forum: Investing - Help with Personal Investments
Topic: where to move an inherited IRA
Replies: 20
Views: 1014

Re: where to move an inherited IRA

It doesn't make any difference that you cannot add to an inherited IRA. Set that aside. It does matter that you must withdraw the RMD/MRD each year, if you want to eke out the maximum overall position upon retirement. If you want to manage the inherited IRA so as to end up with the highest total por...
by Aptenodytes
Sat Jan 23, 2016 11:52 am
Forum: Personal Finance (Not Investing)
Topic: Logistics of puchasing TIPS ladder at auction for a retirement income floor
Replies: 32
Views: 2134

Re: Logistics of puchasing TIPS ladder at auction for a retirement income floor

The general approach makes sense to me, but I would implement it solely with 10-year TIPS, partly because as saltycaper says you can't count on the 5-year TIPS always being available, and partly because in general the 10-year TIPS tend to be better located on the yield curve. Then the plan would als...
by Aptenodytes
Sat Jan 23, 2016 11:32 am
Forum: Personal Finance (Not Investing)
Topic: Help me settle this investment argument with my spouse.
Replies: 25
Views: 2681

Re: Help me settle this investment argument with my spouse.

I agree with cheese_breath -- this is not an investment argument so there is nothing really we can do to help. It is an argument over how to make joint decisions. You must seek advice elsewhere on how to handle that.
by Aptenodytes
Thu Jan 21, 2016 6:39 pm
Forum: Investing - Help with Personal Investments
Topic: Market down - lost alot of $ - nervous..
Replies: 60
Views: 6841

Re: Market down - lost alot of $ - nervous..

You have not yet paid for the wisdom of knowing that stock prices go down. There are two common ways to pay. You can pay with money, by selling erratically at whatever price you succumb and buying back in at a higher price. Or you can pay with anxiety, by sweating, pacing, losing sleep etc during do...
by Aptenodytes
Thu Jan 21, 2016 6:28 pm
Forum: Investing - Help with Personal Investments
Topic: Anyone buying 10 year TIPS tomorrow?
Replies: 19
Views: 1591

Re: Anyone buying 10 year TIPS tomorrow?

I buy at the July auctions. The weather is more pleasant.
by Aptenodytes
Thu Jan 21, 2016 6:26 pm
Forum: Investing - Help with Personal Investments
Topic: help deciding between two 403B portfolio's
Replies: 2
Views: 179

Re: help deciding between two 403B portfolio's

People here can help you clarify your thinking but they can't tell you what to think. You are asking the following questions: 1) Should I tilt my international equities toward emerging markets? 2) Should I tilt my domestic equities toward small-cap value? 3) Should I hold REITs? 4) Should I hold the...
by Aptenodytes
Thu Jan 21, 2016 9:36 am
Forum: Investing - Help with Personal Investments
Topic: When is an HSA account no longer worth it?
Replies: 21
Views: 1960

Re: When is an HSA account no longer worth it?

Your question is about the relative merits of your high-deductible health plan (HDHP) and its alternatives. If you switch to a conventional health plan you will keep your HSA (you just won't be able to add new money to it). Every employer is different. In my case, the HDHP was offered as part of a v...
by Aptenodytes
Mon Jan 18, 2016 8:59 am
Forum: Investing - Theory, News & General
Topic: Does an Emerging Markets "factor" pop out of factor analysis for international stocks?
Replies: 26
Views: 1429

Re: Does an Emerging Markets "factor" pop out of factor analysis for international stocks?

1973-2013... Whoa whoa whoa... Aptenodytes, please forgive me, but how can you have data going back to 1973 when the MSCI Emerging Market index, the first such index, was not created until 1988? I see it's discussed in this thread but I don't think it's kosher: January 1928 – December 1969: 50% IFA...
by Aptenodytes
Sun Jan 17, 2016 10:19 pm
Forum: Investing - Theory, News & General
Topic: Does an Emerging Markets "factor" pop out of factor analysis for international stocks?
Replies: 26
Views: 1429

Re: Does an Emerging Markets "factor" pop out of factor analysis for international stocks?

I believe they are primarily a risk and diversification play. I think they don't get labeled a "factor" simply because the Fama French approach to looking for factors uses individual stock as the unit of analysis, not baskets of entire country stock markets. In theory you could probably ap...
by Aptenodytes
Sun Jan 17, 2016 6:05 pm
Forum: Investing - Help with Personal Investments
Topic: Failing "sleep well" test: Change AA or more Boglehead-therapy?
Replies: 63
Views: 5089

Re: Failing "sleep well" test: Change AA or more Boglehead-therapy?

You have three possible paths. 1) convert all your liquid assets to inflation-indexed SPIAs, 2) convert everything into a 30-year ladder of TIPS, or 3) buy a combination of SPIAs and a TIPS ladder. There's just no other option that will avoid the possibility of a 3% real loss. Here's a site that tel...
by Aptenodytes
Sun Jan 17, 2016 5:40 pm
Forum: Investing - Help with Personal Investments
Topic: Buckets for a retiree?
Replies: 55
Views: 4704

Re: Buckets for a retiree?

I think of bucket strategies as devices for managing withdrawals and adjusting asset allocations in retirement. If the idea of bucket strategies appeals to you, you should read some of the non-lunatic material available to see if they might make sense for you. This brief article by Christine Benz ha...
by Aptenodytes
Sun Jan 17, 2016 5:31 pm
Forum: Investing - Help with Personal Investments
Topic: Reverse dollar cost averaging
Replies: 18
Views: 1735

Re: Reverse dollar cost averaging

If you pick a decision rule and stick with it consistently, it won't matter because the fluctuations will balance out over time.
by Aptenodytes
Sun Jan 17, 2016 1:20 am
Forum: Investing - Help with Personal Investments
Topic: Buy VOO / VSS now? [Borrow to invest, Vanguard 500 / FTSE All world ex-us small caps]
Replies: 15
Views: 1097

Re: Buy VOO / VSS now? [Borrow to invest, Vanguard 500 / FTSE All world ex-us]

It sounds like you haven't as a couple yet decided whether to manage your portfolios as a whole or separately. At least, you don't list a target AA for the combined portfolio. Logically, it is very difficult if you don't manage the portfolios as a whole, because a rational investor will take into ac...
by Aptenodytes
Sat Jan 16, 2016 10:34 pm
Forum: Investing - Help with Personal Investments
Topic: Retirement AA - no rhyme or reason and in need of help
Replies: 33
Views: 2312

Re: Retirement AA - no rhyme or reason and in need of help

6.48% of your total retirement portfolio is in AAPL??? wow Three question marks and a "wow" are hard to interpret, so I may be guessing wrong about your point. But you may want to check your own exposure to AAPL. It is about 3% of the total stock market; 6.5% is a relatively modest multip...
by Aptenodytes
Sat Jan 16, 2016 10:14 pm
Forum: Investing - Help with Personal Investments
Topic: Buy VOO / VSS now? [Borrow to invest, Vanguard 500 / FTSE All world ex-us small caps]
Replies: 15
Views: 1097

Re: Buy VOO / VSS now? [Borrow to invest, Vanguard 500 / FTSE All world ex-us]

Before trying to derive implications from your premises, I'd do some fact checking. I doubt that everyone is buying more equities; in fact I'm sure that's false. None of my rebalance bands have been triggered since Christmas. And I doubt that "this market crash" exists. You are free to pre...
by Aptenodytes
Sat Jan 16, 2016 3:47 pm
Forum: Personal Finance (Not Investing)
Topic: Neighbors - retired, with low income, high home equity
Replies: 25
Views: 4070

Re: Neighbors - retired, with low income, high home equity

Depends on how the house is organized and how much extra income they need. Under some circumstances people like this bring in a lot with AirBnB. Even if they couldn't sequester a self-contained area for lodgers to use year-round, they could think about renting the whole house out via AirBnB for a we...
by Aptenodytes
Sat Jan 16, 2016 3:28 pm
Forum: Investing - Theory, News & General
Topic: It sure looks like a good time to invest in oil
Replies: 80
Views: 7718

Re: It sure looks like a good time to invest in oil

I'll repeat what I usually say when people express a desire to become active managers. Wouldn't it be far better to find an active manager whose judgments are in sync with yours and let them do all the hard work, far more deeply and effectively than you ever could on your own? In your case I would j...
by Aptenodytes
Sat Jan 16, 2016 2:36 pm
Forum: Investing - Help with Personal Investments
Topic: Why should I care about liquidity in high yield funds
Replies: 28
Views: 1265

Re: Why should I care about liquidity in high yield funds

First, don't live off your dividends and interest. It is a sloppy way of thinking. Focus on "Total Returns". Just curious, but why? I am assuming it is a touch more complicated than the sentences above and your answer is likely to give me insight into another perspective. In the stock mar...

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