Search found 419 matches

by Elbowman
Fri Feb 24, 2017 11:00 am
Forum: Investing - Help with Personal Investments
Topic: US Small Value - Did i just luck out big time?!
Replies: 18
Views: 884

Re: US Small Value - Did i just luck out big time?!

ZenInvestor wrote:Its a small cap value fund with an ER of 0.51%.

There are people here who would pay 0.51% for SV, but I'm not one of them.
by Elbowman
Wed Feb 22, 2017 12:24 am
Forum: Investing - Theory, News & General
Topic: Reconciling history of nominal GDP vs. S&P 500 return
Replies: 16
Views: 1858

Re: Reconciling history of nominal GDP vs. S&P 500 return

I saw an interview with John Bogle today, where he said he wasn't super bullish (my words) on stock returns since GDP is only 2%. This made me realize the relationship between stock returns and GDP was not at clear in my mind as I wanted it to be, so I dug up this old thread. Say we are ignoring the...
by Elbowman
Wed Feb 15, 2017 7:13 pm
Forum: Investing - Help with Personal Investments
Topic: Gotchas for Backdoor Roth AFTER Transfer to Vanguard?
Replies: 2
Views: 300

Gotchas for Backdoor Roth AFTER Transfer to Vanguard?

Hi Bogleheads, I have two related questions: 1) I got married this year, and I'd like to transfer my wife's investments accounts from Capital One to Vanguard. I had planned on doing this after I did a backdoor conversion for this tax year (at Capital One), because it seemed like there would be fewer...
by Elbowman
Wed Feb 15, 2017 12:56 pm
Forum: Investing - Help with Personal Investments
Topic: MetLife Promise Whole Life Select 10
Replies: 16
Views: 1158

Re: MetLife Promise Whole Life Select 10

A bit more information: we've made a very large home purchase in NY (way too much) and my monthly mortgage payment will be around $8k/month (purchasing a $2,500,000 apartment, borrowing $1,800,000). Investing in 401K for both my wife and myself, cost of nanny, paying school - which i did not not fo...
by Elbowman
Tue Feb 14, 2017 10:31 am
Forum: Investing - Help with Personal Investments
Topic: MetLife Promise Whole Life Select 10
Replies: 16
Views: 1158

Re: MetLife Promise Whole Life Select 10

Yes, you should post more information. But once you do, we will almost certainly suggest you cancel the policy. The main situation where you many actually need Whole Life (also known as Permanent Life) insurance is if you will still need life insurance after you retire (most people don't). An exampl...
by Elbowman
Mon Feb 13, 2017 9:24 pm
Forum: Investing - Help with Personal Investments
Topic: Switching portfolio - 3-fund with slight tilt to Larry Porfolio
Replies: 16
Views: 1362

Re: Switching portfolio - 3-fund with slight tilt to Larry Porfolio

Two points: 1) I disagree with pezblanco and would in fact suggest the opposite. If I was doing the Larry Portfolio I would use: VBR Vanguard Small-Cap Value VWO Vanguard FTSE Emerging Markets Keep costs low first and foremost, whatever other shenanigans you are trying to pull off :D 2) You are prop...
by Elbowman
Mon Feb 13, 2017 7:47 pm
Forum: Investing - Theory, News & General
Topic: Please list value funds you currently use
Replies: 62
Views: 4665

Re: Please list value funds you currently use

VBR.

Have a relatively simple five fund portfolio, and VBR is my one nod to factors.
by Elbowman
Fri Feb 10, 2017 11:38 am
Forum: Investing - Help with Personal Investments
Topic: Please help me select a 401(k) Investment Option, Thank you!
Replies: 13
Views: 472

Re: Please help me select a 401(k) Investment Option, Thank you!

Is there a reason why FSIIX at .19% is better than the S&P funds at .06%? Dividend? It's not "better" in the sense that you would ever choose 100% FSIIX for your stocks. But it probably adds some amount of diversification, which makes it good to hold some of each. Below is a thread wh...
by Elbowman
Fri Feb 10, 2017 10:54 am
Forum: Investing - Help with Personal Investments
Topic: Need some insight into my investments - 401k/Roth Vanguard
Replies: 12
Views: 651

Re: Need some insight into my investments - 401k/Roth Vanguard

Hi IMacD, First off I'd drop the "TIAA-CREF Small-Cap Eq Fd Instl". I have nothing against small-caps, I hold Vanguard SCV myself, but only because I can get it for 0.08%. If you really want small-caps you could hold a lower cost option in your Roth IRA. 0.42% is too much of a headwind for...
by Elbowman
Fri Feb 10, 2017 10:28 am
Forum: Investing - Help with Personal Investments
Topic: Please help me select a 401(k) Investment Option, Thank you!
Replies: 13
Views: 472

Re: Please help me select a 401(k) Investment Option, Thank you!

Fidelity International Index Investor Fund ... 0.19%

This looks fine for international. What's your plan for bonds?
by Elbowman
Thu Feb 09, 2017 8:38 pm
Forum: Investing - Help with Personal Investments
Topic: Portfolio Makeover
Replies: 4
Views: 495

Re: Portfolio Makeover

Thanks for the reply - it makes much sense. Assuming I want to go 70/30 instead of 80/20, I'm thinking the correct location to place the heavier bond weighting would be in the Roth IRA due to the tax exempt nature of the account. In other words, invest my entire Roth IRA into a Total Bond Market fu...
by Elbowman
Thu Feb 09, 2017 11:26 am
Forum: Investing - Help with Personal Investments
Topic: Portfolio Makeover
Replies: 4
Views: 495

Re: Portfolio Makeover

Hi investor997, The general strategy is to think of all of your accounts as one big portfolio, and then allocate to minimize costs. For your portfolio it might look like this: Assuming you want 80/20 stock/bond, and 60/40 US/international on the stock side, then you want 48/32/20 US stock/internatio...
by Elbowman
Thu Feb 09, 2017 10:50 am
Forum: Investing - Help with Personal Investments
Topic: backdoor Roth...
Replies: 8
Views: 683

Re: backdoor Roth...

Well, you seem to have a handle on the tradeoff. If you convert and the backdoor Roth stays available for 3+ years, you'll come out ahead. If they close it next year, you'll come out behind. No one knows which of those it will be.
by Elbowman
Thu Feb 09, 2017 10:34 am
Forum: Investing - Help with Personal Investments
Topic: Portfolio Opinions and Thoughts
Replies: 8
Views: 432

Re: Portfolio Opinions and Thoughts

iceport wrote:► The lack of any international exposure, particularly at a time when US equities are so highly valued by comparison, would bother me. It also contradicts the apparent tilt toward an otherwise higher risk/return equity allocation.
+1
by Elbowman
Wed Feb 08, 2017 11:03 am
Forum: Investing - Help with Personal Investments
Topic: 3-Fund Portfolio with Option Volume
Replies: 6
Views: 658

Re: 3-Fund Portfolio with Option Volume

Hi bliksem55, You could definitely use SPY in place of the Total Stock Market part of the three fund portfolio. Most people consider the S&P 500 index to be slightly worse, but for most part a reasonable substitute for TSM if you have no better options. What people here are more likely to disagr...
by Elbowman
Mon Feb 06, 2017 12:36 pm
Forum: Investing - Theory, News & General
Topic: Anyone have a tilt portfolio similar to this
Replies: 22
Views: 1901

Re: Anyone have a tilt portfolio similar to this

Yes, quite similar: 20% TSM 20% US-SCV 20% Developed International 20% Emerging 20% TBM The reason I don't like the Trev H portfolio is I want to own a piece of everything, i.e. I don't want to be left on the sidelines if the nano-tech / bio-tech / not-yet-invented-tech revolution is dominated by LC...
by Elbowman
Mon Feb 06, 2017 11:52 am
Forum: Investing - Help with Personal Investments
Topic: Cannot index bonds or international??
Replies: 5
Views: 364

Re: Cannot index bonds or international??

I'll just focus on the most important bit because I should be working :) . He says that PERFORMANCE NET OF FEES is more important indicator that EXPENSE. Performance net of fees GOING FORWARD is the most important factor. You can't invest in the past, and past performance (net of fees) is not actual...
by Elbowman
Mon Feb 06, 2017 12:30 am
Forum: Investing - Help with Personal Investments
Topic: Have a Target Date Fund, What Else Should I Get?
Replies: 2
Views: 391

Re: Have a Target Date Fund, What Else Should I Get?

The point of a Target Date Fund, and mutual funds in general, is they are not "just one basket". You Target Date Fund has over 10,000 stocks and bonds from around the world, and under some very reasonable definitions of "diversification", it is hard to be more diversified than th...
by Elbowman
Fri Feb 03, 2017 11:16 am
Forum: Investing - Help with Personal Investments
Topic: Aggressive Portfolio and Invest Strategy
Replies: 5
Views: 649

Re: Aggressive Portfolio and Invest Strategy

Hi zenghaidong! Your savings seem to be 100% Roth, which I (and many others here) think is overdoing it. Have you planned out what your retirement tax situation will look like? Given your savings rate I imagine you are at least in the 25% federal tax bracket right now, perhaps 28% or higher. Given t...
by Elbowman
Wed Feb 01, 2017 10:58 am
Forum: Investing - Help with Personal Investments
Topic: AAPL: Too much of a good thing?
Replies: 15
Views: 907

Re: AAPL: Too much of a good thing?

How far are you from retirement? If it is relatively soon (say 5-10 years), you could gamble on Apple's stock staying strong until you reach your retirement tax bracket. If it is a ways away (say 20-30 years), I feel there is a much higher chance of a significant change disrupting Apple's dominance....
by Elbowman
Tue Jan 24, 2017 9:14 pm
Forum: Personal Finance (Not Investing)
Topic: Can I afford to stop working overtime?
Replies: 56
Views: 4454

Re: Can I afford to stop working overtime?

It depends if you are 40 or 70, right? What will your income requirements be in retirement, and how long does that $1,050,000 have to grow before you start withdrawing?
by Elbowman
Wed Jan 11, 2017 11:20 am
Forum: Investing - Help with Personal Investments
Topic: Tight Budget Noobie help with Retirement
Replies: 31
Views: 1840

Re: Tight Budget Noobie help with Retirement

Hi Autopeep, A couple comments: 1. You should be paying more attention to costs. Out of the four funds you listed for her 401k, the only one I would invest in is VG Institutional Index (VINIX). You can use your IRA (where you have more / lower cost options) to balance your overall portfolio. And spe...
by Elbowman
Tue Jan 10, 2017 11:08 am
Forum: Investing - Help with Personal Investments
Topic: New to the Site [457 Roth?]
Replies: 3
Views: 271

Re: New to the Site [457 Roth?]

Hi Jrm3, welcome! Do you have an IRA? One option is to contribute to a Roth IRA (in addition to your 457), and hold you international stocks and your bonds there, giving you a much lower expense ratio overall. As far as Roth vs. Trad 457, you are solidly in the 25% federal bracket, so I would contin...
by Elbowman
Thu Jan 05, 2017 7:54 pm
Forum: Investing - Help with Personal Investments
Topic: Experienced investor: For your portfolio, at what point compound interest really kick in for you? $500k? $1million+?
Replies: 35
Views: 4525

Re: Experienced investor: For your portfolio, at what point compound interest really kick in for you? $500k? $1million+

I don't think it is an absolute number, but is instead relative to your savings rate. I'm excited for the day when my portfolio return is larger than my new contributions, but that is still many years away.
by Elbowman
Thu Dec 22, 2016 2:04 pm
Forum: Personal Finance (Not Investing)
Topic: grad student --> real job - tax issues ?
Replies: 18
Views: 749

Re: grad student --> real job - tax issues ?

Having made that transition, I'd recommend your son do his taxes as early as possible, so he has a couple months to save if he finds he has an unexpected tax bill.
by Elbowman
Thu Dec 22, 2016 1:21 am
Forum: Investing - Help with Personal Investments
Topic: A little help please..
Replies: 6
Views: 862

Re: A little help please..

Im just wondering which is the better play of the 3 funds The point is, if the best use of these three funds is something drastically different than your overall AA, then your overall AA is wrong. If the reason you don't want to incorporate this into your AA is just for simplicity, and you don't wa...
by Elbowman
Wed Dec 21, 2016 2:33 pm
Forum: Investing - Theory, News & General
Topic: Help finding the best bond strategy?
Replies: 7
Views: 1055

Re: Help finding the best bond strategy?

If you only have 8% bonds, I'd focus less on returns (which will be dominated by your 92% stocks) and more on diversifying behavior. Compare the performance of BND, LQD, and HYG in 2008. LQD lost 25%, HYG lost 35%... whats the point? You might as well be 100% stocks. When you have <= 10% bonds, I th...
by Elbowman
Wed Dec 21, 2016 1:50 pm
Forum: Investing - Help with Personal Investments
Topic: A little help please..
Replies: 6
Views: 862

Re: A little help please..

..money to invest in pension acct. dont care how it affects my AA so lets take that factor out of the equation it isnt that large of an amt where it will move the needle one way or another much... As you probably know since you have a good number of posts, the strategy generally recommended on this...
by Elbowman
Tue Dec 13, 2016 10:58 am
Forum: Investing - Help with Personal Investments
Topic: Helping my parents in bad shape
Replies: 15
Views: 1309

Re: Helping my parents in bad shape

I'm sorry, that sounds very hard. A couple years ago I was also in a situation where my parents were 60, had underfunded their retirement, were making a lot of money, yet were spending nearly all of it and "couldn't figure out how they could live on any less". I just helped them with the p...
by Elbowman
Tue Dec 06, 2016 10:46 pm
Forum: Investing - Help with Personal Investments
Topic: New to investing: general portfolio suggestions?
Replies: 10
Views: 856

Re: New to investing: general portfolio suggestions?

Vanguard Institutional Index I 0.04 / 0.04 VINIX Vanguard Mid Cap Index Ins 0.07 / 0.07 VMCIX Vanguard Small Cap Index Instl 0.07 / 0.07 VSCIX This is what Duckie was looking for :-) . You can build a Three Fund Portfolio spread across your 401k and IRA. In the 401k you can use the Book Value Fund ...
by Elbowman
Tue Dec 06, 2016 8:23 pm
Forum: Investing - Help with Personal Investments
Topic: ETF vs. index funds
Replies: 12
Views: 1226

Re: ETF vs. index funds

As others have said, the comparison is not ETF vs. index funds, it is ETF vs. open ended mutual funds. Both ETFs and mutual funds can be designed to track an index, and therefore be an "index fund". The differenced between an ETF and a mutual fund tracking the same index is usually pretty ...
by Elbowman
Tue Nov 29, 2016 8:47 pm
Forum: Investing - Help with Personal Investments
Topic: vnjux muni bond fund what to do
Replies: 3
Views: 533

Re: vnjux muni bond fund what to do

my concern is with the current bond market. Try not to be concerned, not because there is nothing concerning happening, but because there is nothing you can do about it. Here is a helpful rule for the individual investor: By the time you hear the news, it is too late to act on it. The professionals...
by Elbowman
Fri Nov 11, 2016 4:21 pm
Forum: Personal Finance (Not Investing)
Topic: Term Life vs Universal Life
Replies: 11
Views: 695

Re: Term Life vs Universal Life

It's been discussed a bazillion times: https://www.google.com/search?sitesearch=bogleheads.org&q=universal+life+insurance . Short answer is Universal Life is bad as an investments because it has high fees. It is only useful when you actually need "permanent" life insurance, which is ve...
by Elbowman
Wed Nov 02, 2016 7:35 pm
Forum: Investing - Help with Personal Investments
Topic: Can you evaluate my financial situation?
Replies: 33
Views: 2067

Re: Can you evaluate my financial situation?

BogleMelon wrote:Ok gentlemen, what else you have for me as an evaluation? please feel free to fry me up if something I mentioned seem wrong!
Just that you will need to play some catch-up as you are a little behind on your savings. Given your income vs. spending you should be fine though if you start saving now.
by Elbowman
Wed Nov 02, 2016 7:29 pm
Forum: Investing - Help with Personal Investments
Topic: Can you evaluate my financial situation?
Replies: 33
Views: 2067

Re: Can you evaluate my financial situation?

Don't I need these US small cap companies in my portfolio? "Need"? No. You will be fine without them. Look at a graph of the S&P 500 vs Total Stock Market, they are very similar. If you want to you could include a little bit of the Extended Market Index in your Roth IRAs, but you were...
by Elbowman
Wed Nov 02, 2016 7:21 pm
Forum: Investing - Help with Personal Investments
Topic: Can you evaluate my financial situation?
Replies: 33
Views: 2067

Re: Can you evaluate my financial situation?

BogleMelon wrote:One thing I don't quite understand, why the saving rate always compared to the gross income not to the take home pay? I can not choose not to spend the taxes and keep it to myself, for example
You can if you invest pre-tax :D
by Elbowman
Wed Nov 02, 2016 7:19 pm
Forum: Investing - Help with Personal Investments
Topic: Can you evaluate my financial situation?
Replies: 33
Views: 2067

Re: Can you evaluate my financial situation?

The cheapest mutual fund in my 401K is one that follows S&P 500, ER is 0.75% That's good enough to make it worthwhile. The strategy would be to hold only that in your 401k and then hold Total International Stock Market and Total Bond Market your Roth IRAs to balance your portfolio. If it make y...
by Elbowman
Fri Oct 28, 2016 8:07 pm
Forum: Investing - Help with Personal Investments
Topic: Portfolio Diversifying question with Target 2040 and others.
Replies: 19
Views: 1642

Re: Portfolio Diversifying question with Target 2040 and others.

For what it's worth, there is another thread going on right now which suggests that given the current valuations, holding international stocks is the more aggressive move. Given that TR 2040 is 35% international but only 12% bonds, and if the expected returns in the thread I linked are correct, then...
by Elbowman
Fri Oct 14, 2016 10:42 am
Forum: Investing - Help with Personal Investments
Topic: An alternate to DNP [DNP Select Income Fund Inc.]
Replies: 21
Views: 1619

Re: An alternate to DNP

I mean... sure, this board has lots of different opinions, and maybe a couple follow this style of investing and have the advice you are looking for. But you have 200+ posts, and you are asking about a leveraged stock fund with an ER of either 1% or 1.6%, depending on how you measure. Surely you alr...
by Elbowman
Wed Oct 05, 2016 5:25 pm
Forum: Investing - Help with Personal Investments
Topic: Maximizing tax advantaged space
Replies: 2
Views: 302

Re: Maximizing tax advantaged space

Government savings bonds (I and EE) are tax deferred. If the fixed rate of I Bonds ever get back to the 1%+ range I will probably buy some.
by Elbowman
Thu Sep 29, 2016 7:14 pm
Forum: Investing - Help with Personal Investments
Topic: Seen the light, need advice.
Replies: 18
Views: 1881

Re: Seen the light, need advice.

Trad 401ks are usually better for most circumstances. Here's why: Pre-retirement costs: living expenses, mortgage, children, retirement savings. Post-retirement costs: living expenses. You typically need less money in retirement to maintain the same lifestyle, so your tax rate is typically lower. W...
by Elbowman
Thu Sep 29, 2016 6:30 pm
Forum: Investing - Help with Personal Investments
Topic: FBIOX is killing me. [Fidelity Select Biotechnology]
Replies: 48
Views: 3042

Re: FBIOX is killing me.

Honestly, not to get political, but when I woke up and saw this, I had a feeling this could happen. I should have gone with my gut and sold when I saw the tweet. Words matter. The big crash and very slow "recovery" happened after this. It worries me what might happen after November. It co...
by Elbowman
Wed Sep 28, 2016 7:34 pm
Forum: Investing - Help with Personal Investments
Topic: Seen the light, need advice.
Replies: 18
Views: 1881

Re: Seen the light, need advice.

Trad 401ks are usually better for most circumstances. Here's why:

Pre-retirement costs: living expenses, mortgage, children, retirement savings.
Post-retirement costs: living expenses.

You typically need less money in retirement to maintain the same lifestyle, so your tax rate is typically lower.
by Elbowman
Wed Sep 28, 2016 7:12 pm
Forum: Investing - Help with Personal Investments
Topic: Anyone feel like ripping this asset allocation to shreds?
Replies: 58
Views: 3556

Re: Anyone feel like ripping this asset allocation to shreds?

For someone who is retired, it is 80% good, 20% commodities, which probably averages out to "good enough" if you stick with it. Could use some TISM. It is pretty conservative, but to know if it is too conservative for you we need more information (retirement savings vs. required income).
by Elbowman
Fri Sep 23, 2016 7:34 pm
Forum: Investing - Theory, News & General
Topic: Rolling a 401k from previous employer to an IRA or new 401k
Replies: 7
Views: 503

Re: Rolling a 401k from previous employer to an IRA or new 401k

If you are over the income limits for contributing to a Roth IRA but would still like to, then there is an advantage to choosing the 401k. Having a Trad IRA limits your ability to do a Backdoor Roth conversion.
https://thefinancebuff.com/the-backdoor ... ow-to.html
by Elbowman
Fri Sep 23, 2016 7:28 pm
Forum: Investing - Help with Personal Investments
Topic: New portfolio!
Replies: 6
Views: 432

Re: New portfolio!

You've done a good job setting up a solid portfolio! The only thing I could recommend is to read a few books on investing if you haven't yet. The big threat now is that you panic during a downturn and change your plan (and people have a knack for doing this at the worst possible time). The more you ...
by Elbowman
Thu Sep 22, 2016 7:47 pm
Forum: Investing - Theory, News & General
Topic: Extreme Maximization of College Financial Aid
Replies: 88
Views: 5484

Re: Extreme Maximization of College Financial Aid

First of all, everyone on this thread who takes advantage of the backdoor Roth conversion can get off their high horse. I'm one of those who enjoys these types of analyses so I figured I'd ask this forum whether I'm overlooking anything (from a purely financial perspective) other than my own need to...
by Elbowman
Wed Sep 21, 2016 10:03 am
Forum: Investing - Help with Personal Investments
Topic: My future in your hands...
Replies: 26
Views: 4269

Re: My future in your hands...

Hi beachlife86, First of all, your future is in YOUR hands! :D You need to do some reading, because while we can give you a good strategy we can't make you stick with it during tough times, which is essential. You need to understand why it's good and believe it. I recommend reading "If You Can&...
by Elbowman
Tue Sep 13, 2016 8:52 pm
Forum: Investing - Help with Personal Investments
Topic: I am going to stop tilting. Sanity check.
Replies: 66
Views: 6722

Re: I am going to stop tilting. Sanity check.

The way I see it, when it comes to investing there is the big stuff: 1) Save early and often 2) Keep costs low (including taxes) 3) Be broadly diversified 4) Stay the course and there is the little stuff: 1) Tilting 2) Target Retirement vs. roll your own 3) Lump sum vs. (reasonably short) DCA 4) etc...
by Elbowman
Mon Sep 12, 2016 11:08 am
Forum: Investing - Theory, News & General
Topic: An "out of sample" test of two specific factor-based portfolios published pre-2008
Replies: 76
Views: 6096

Re: An "out of sample" test of two specific factor-based portfolios published pre-2008

The book promised updates to all the performance data on a website, but, a few years after the crash, when I checked, the website was defunct and the author did not answer an email I sent him. The book is apparently still being sold by Amazon (!) so I have no idea what the story is. Larry, the fact...

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