Search found 387 matches

by JustinR
Tue Sep 05, 2017 10:14 pm
Forum: Investing - Theory, News & General
Topic: Do retiree BHs actually run down their portfolios?
Replies: 73
Views: 7969

Re: Do retiree BHs actually run down their portfolios?

I am a retiree, genetically programmed to be a frugal spender and a BH. I read about all these Withdrawal Rates, etc. But, frankly, do real-life BH retirees ever have declining portfolios? Let's face it, any market decline will be followed up immediately by a tightening up of the WR. Even an annual...
by JustinR
Mon Sep 04, 2017 8:44 pm
Forum: Investing - Theory, News & General
Topic: What is the "safe, safe" withdrawal rate?
Replies: 38
Views: 3936

Re: What is the "safe, safe" withdrawal rate?

i saw a thread in which the SWR was decried by people here, because it doesnt consider inflation. I think that there are contradictory answers to the safe SWR. is it inflation indexed? Indexed to healthcare costs? Not indexed? Doesnt make sense, so i ignore that advice. The 4% rule is adjusted for ...
by JustinR
Mon Sep 04, 2017 9:36 am
Forum: Investing - Theory, News & General
Topic: What are you up YTD? [Year To Date]
Replies: 1462
Views: 260114

Re: What are you up YTD? [Year To Date]

Why doesn't Vanguard's personal performance page give you a return percentage for YTD? Selecting any time period other than "Since inception" removes the Rate of Return %. Click on year to date. Then just divide "investment returns" by "beginning balance". If you are making regular monthly withdraw...
by JustinR
Mon Sep 04, 2017 9:06 am
Forum: Investing - Theory, News & General
Topic: Michael Kitces 4% rule podcast on Madfientist
Replies: 330
Views: 31228

Re: Michael Kitces 4% rule podcast on Madfientist

Thanks for the reply. I guess I don't understand what portion is taken from the stable income versus the VPW. The wiki says your "base income" should come from the stable portion, which is the TIPS/CD ladder or an annuity. But it doesn't say what "base" means...is that the total of your required sp...
by JustinR
Mon Sep 04, 2017 8:23 am
Forum: Investing - Theory, News & General
Topic: Michael Kitces 4% rule podcast on Madfientist
Replies: 330
Views: 31228

Re: Michael Kitces 4% rule podcast on Madfientist

Justin, So VPW is not really viable for retirees in their 30s like you said, correct? You should download the spreadsheet and look. The second thing it does it ask you how you are when you are retire. By default it uses 65 but you can set it to 50 or even 15 if you want. VPW has nothing that inhere...
by JustinR
Mon Sep 04, 2017 7:19 am
Forum: Investing - Theory, News & General
Topic: What are you up YTD? [Year To Date]
Replies: 1462
Views: 260114

Re: What are you up YTD? [Year To Date]

Why doesn't Vanguard's personal performance page give you a return percentage for YTD?

Selecting any time period other than "Since inception" removes the Rate of Return %.
by JustinR
Mon Sep 04, 2017 6:58 am
Forum: Investing - Theory, News & General
Topic: Michael Kitces 4% rule podcast on Madfientist
Replies: 330
Views: 31228

Re: Michael Kitces 4% rule podcast on Madfientist

So VPW is not really viable for retirees in their 30s like you said, correct? You should download the spreadsheet and look. The second thing it does it ask you how you are when you are retire. By default it uses 65 but you can set it to 50 or even 15 if you want. VPW has nothing that inherently pre...
by JustinR
Mon Sep 04, 2017 4:29 am
Forum: Investing - Theory, News & General
Topic: Michael Kitces 4% rule podcast on Madfientist
Replies: 330
Views: 31228

Re: Michael Kitces 4% rule podcast on Madfientist

Such a plan can use our Wiki's Variable Percentage Withdrawal (VPW) method, a withdrawal method which adapts to the retiree's retirement horizon, asset allocation, and portfolio returns during retirement. It combines the best ideas of the constant-dollar, constant-percentage, and 1/N withdrawal met...
by JustinR
Sun Sep 03, 2017 2:06 am
Forum: Investing - Theory, News & General
Topic: Michael Kitces 4% rule podcast on Madfientist
Replies: 330
Views: 31228

Re: Michael Kitces 4% rule podcast on Madfientist

Can someone explain the bond/TIPS ladder? How is that income for retirement? From what I'm reading you reinvest the principal, No, you spend the principal. Each year, one bond or TIPS matures. Its value is enough to cover that year's expenses, or only your "floor" expenses if that's how you designe...
by JustinR
Sat Sep 02, 2017 10:52 pm
Forum: Investing - Theory, News & General
Topic: Do you reinvest your dividends/capital gains?
Replies: 76
Views: 8958

Re: Do you reinvest your dividends/capital gains?

Retirement accounts: reinvest

Taxable: cash the check, invest to rebalance. This lets you rebalance in your taxable without selling.
by JustinR
Sat Sep 02, 2017 10:09 pm
Forum: Investing - Theory, News & General
Topic: Michael Kitces 4% rule podcast on Madfientist
Replies: 330
Views: 31228

Re: Michael Kitces 4% rule podcast on Madfientist

Can someone explain the bond/TIPS ladder?

How is that income for retirement? From what I'm reading you reinvest the principal, so how does that fund your retirement? You live off the 2-4% yield?
by JustinR
Sat Sep 02, 2017 7:04 pm
Forum: Investing - Theory, News & General
Topic: Upcoming 2017 changes to Vanguard REIT fund(s)
Replies: 23
Views: 4098

Re: Upcoming 2017 changes to Vanguard REIT fund(s)

Is this a positive or negative?

From reading the materials it sounds good? But that's because the board supports it and wants us to vote Yes.

It seems good right? More diversification in a limited space?
by JustinR
Thu Aug 31, 2017 9:06 pm
Forum: Investing - Theory, News & General
Topic: Why go with an 80% stock / 20% bond portfolio?
Replies: 360
Views: 32173

Re: Why go with an 80% stock / 20% bond portfolio?

I'll save you 7 pages of reading: OP: "Based on nothing but my gut feeling, I assert that people with 80% stocks are just as likely to panic sell in a downturn as someone at 100%. So there's no reason to be 80/20. Might as well be 100/0 like me." Someone: "Not necessarily...having a $200k bond safet...
by JustinR
Mon Aug 28, 2017 4:25 pm
Forum: Investing - Help with Personal Investments
Topic: What counts as income? (planning retirement withdrawal strategy)
Replies: 13
Views: 1205

Re: What counts as income? (planning retirement withdrawal strategy)

Related question I've never really thought about before, and will ask here and then go look it up later (if no one beats me to it)... How are after-tax IRA/401k --> Roth conversions (original contributions and earnings) treated with respect to penalties? I would think all the rules are the same. On...
by JustinR
Mon Aug 28, 2017 4:20 pm
Forum: Investing - Help with Personal Investments
Topic: What counts as income? (planning retirement withdrawal strategy)
Replies: 13
Views: 1205

Re: What counts as income? (planning retirement withdrawal strategy)

"Roth IRA earnings: Depends on age" What does this mean? Do earnings not count as income after 60? Withdrawals of earnings in a Roth IRA are tax free if the withdrawals are "qualified". In general after age 59.5 withdrawals of earnings are tax free, yes. Under most circumstances that don't involve ...
by JustinR
Mon Aug 28, 2017 2:08 am
Forum: Investing - Help with Personal Investments
Topic: What counts as income? (planning retirement withdrawal strategy)
Replies: 13
Views: 1205

Re: What counts as income? (planning retirement withdrawal strategy)

AND they don't count as income? That's what I'm trying to figure out. Define "income". Are Roth withdrawals taxable income? (in general) no. Are Roth withdrawals 'income' because you can spend the money? Yes. 'Income' can have different meanings in different situations. What kind of income are you ...
by JustinR
Mon Aug 28, 2017 12:57 am
Forum: Investing - Help with Personal Investments
Topic: What counts as income? (planning retirement withdrawal strategy)
Replies: 13
Views: 1205

Re: What counts as income? (planning retirement withdrawal strategy)

"Roth IRA earnings: Depends on age" What does this mean? Do earnings not count as income after 60? Withdrawals of earnings in a Roth IRA are tax free if the withdrawals are "qualified". In general after age 59.5 withdrawals of earnings are tax free, yes. Under most circumstances that don't involve ...
by JustinR
Mon Aug 28, 2017 12:34 am
Forum: Investing - Help with Personal Investments
Topic: What counts as income? (planning retirement withdrawal strategy)
Replies: 13
Views: 1205

Re: What counts as income? (planning retirement withdrawal strategy)

Taxable principal: No Taxable earnings: Yes Roth IRA principal: Usually not, unless it is from a tIRA conversion done less than 5 years ago. Roth IRA earnings: Depends on age Traditional IRA: Yes Traditional IRA Required Minimum Distributions: Yes 401K: Yes 401K Required Minimum Distributions: Yes ...
by JustinR
Sun Aug 27, 2017 11:50 pm
Forum: Investing - Help with Personal Investments
Topic: What counts as income? (planning retirement withdrawal strategy)
Replies: 13
Views: 1205

What counts as income? (planning retirement withdrawal strategy)

It's confusing which things count as income. Some things are not counted as income at all. Other things are subject to 0% tax...but count as income (such as capital gains in lower tax brackets). Here's a list of different types of withdrawals, please tell me if it counts as income or not, and if the...
by JustinR
Sun Aug 27, 2017 11:36 pm
Forum: Investing - Help with Personal Investments
Topic: How does IRA recharacterization work if you switch funds while converting?
Replies: 1
Views: 182

How does IRA recharacterization work if you switch funds while converting?

From what I understand, if during the conversion you're just buying the same fund, it's super simple since it's just like transferring the same shares from one account to another. If you recharacterize, I assume the fund just gets transferred back into the first account as is? But what if during the...
by JustinR
Sun Aug 27, 2017 9:09 pm
Forum: Investing - Theory, News & General
Topic: Small-Cap Value has had higher returns than Total Stock Market, with lower risk
Replies: 49
Views: 4189

Re: Small-Cap Value has had higher returns than Total Stock Market, with lower risk

Is there something inherently better about TSM that I should keep my stocks in there and not move them to SCV? Currently I'm half TSM and half SCV for my domestic allocation. Hey Justin. I'm glad to see somebody making such good use of the Simba spreadsheet, this is cool. Your observations about th...
by JustinR
Sun Aug 27, 2017 8:52 pm
Forum: Investing - Theory, News & General
Topic: Small-Cap Value has had higher returns than Total Stock Market, with lower risk
Replies: 49
Views: 4189

Re: Small-Cap Value has higher returns than Total Stock Market, with lower risk

Over the past 3,5,10, and 15 year period(s) DFSVX which is typically pointed to as the premier 'Small-Cap Value' fund has had a lower Sharpe Ratio indicating higher risk and lower risk-adjusted returns using the traditional measurements http://i.imgs.fyi/img/19lg.jpg The whole idea of factor invest...
by JustinR
Sun Aug 27, 2017 4:45 pm
Forum: Investing - Theory, News & General
Topic: Small-Cap Value has had higher returns than Total Stock Market, with lower risk
Replies: 49
Views: 4189

Re: Small-Cap Value has higher returns than Total Stock Market, with lower risk

Over the past 3,5,10, and 15 year period(s) DFSVX which is typically pointed to as the premier 'Small-Cap Value' fund has had a lower Sharpe Ratio indicating higher risk and lower risk-adjusted returns using the traditional measurements http://i.imgs.fyi/img/19lg.jpg The whole idea of factor invest...
by JustinR
Sun Aug 27, 2017 4:23 pm
Forum: Investing - Theory, News & General
Topic: Small-Cap Value has had higher returns than Total Stock Market, with lower risk
Replies: 49
Views: 4189

Re: Small-Cap Value has higher returns than Total Stock Market, with lower risk

I have a very noobie question, what are the best metrics you use or anybody in general should use to measure downside risk or risk in general ? A lot of this seems to be going over my head Look up Sortino Ratio: http://www.investopedia.com/terms/s/sortinoratio.asp The Sortino ratio is a useful way ...
by JustinR
Sun Aug 27, 2017 12:06 am
Forum: Investing - Theory, News & General
Topic: Small-Cap Value has had higher returns than Total Stock Market, with lower risk
Replies: 49
Views: 4189

Re: Small-Cap Value has higher returns than Total Stock Market, with lower risk

As a massive tilter personally (all Value, most small value including internationally), I completely disagree with you re: downside. Also 1970-2016 gives you all theee massive Small Value boosts. At a given equity percentage, Small Value is between 1/3 and 1/2 again as volatile as standard stocks. ...
by JustinR
Sat Aug 26, 2017 11:12 pm
Forum: Investing - Theory, News & General
Topic: Small-Cap Value has had higher returns than Total Stock Market, with lower risk
Replies: 49
Views: 4189

Small-Cap Value has had higher returns than Total Stock Market, with lower risk

I apologize that I made a similar thread about Mid-Cap Value a few hours ago, but I just backtested Small-Cap and was wondering if people had opinions on going 100% SCV instead of TSM. Using Simba's backtesting spreadsheet , I plugged in 80%TSM vs 80%SCV (with the rest in Total Bond). You can downlo...
by JustinR
Sat Aug 26, 2017 6:31 pm
Forum: Investing - Theory, News & General
Topic: Switching 100% to Mid-Cap Value? It consistently beats Total Stock Market with lower risk
Replies: 10
Views: 1816

Switching 100% to Mid-Cap Value? It consistently beats Total Stock Market with lower risk

First, please read these two articles: Mid-Cap Value Outperformance: Consistently Beating the S&P 500 6 Reasons The Mid-Cap Value Index is Constructed to Outperform Summary: Mid-Cap Value has higher returns and lower risk than the S&P 500. The reason for the outperformance is built in due to how mid...
by JustinR
Wed Aug 16, 2017 10:29 pm
Forum: Investing - Help with Personal Investments
Topic: California - clarification on taxes
Replies: 36
Views: 2572

Re: California - clarification on taxes

Edit: So if you itemize you can subtract 28% * 9.3% = 2.6%, which means your tax is 43.3%. The itemize deduction is only worth it's benefit above the "freebie" standard deduction. A lot arithmetic hoops to jump through to get this answer made more complicated by phaseouts and other arcane rules. I'...
by JustinR
Wed Aug 16, 2017 4:48 pm
Forum: Investing - Help with Personal Investments
Topic: California - clarification on taxes
Replies: 36
Views: 2572

Re: California - clarification on taxes

Say I'm in the 28% federal marginal bracket. I'm in California. Does this mean, that for the last dollar I make from my employer , I lose this in taxes: Fed: 28% State: 9.3% It isn't just your wages that are taxed like this, but also most of the other income on your tax return, although some things...
by JustinR
Wed Aug 16, 2017 4:45 pm
Forum: Investing - Help with Personal Investments
Topic: California - clarification on taxes
Replies: 36
Views: 2572

Re: California - clarification on taxes

Edit: So if you itemize you can subtract 28% * 9.3% = 2.6%, which means your tax is 43.3%. The itemize deduction is only worth it's benefit above the "freebie" standard deduction. A lot arithmetic hoops to jump through to get this answer made more complicated by phaseouts and other arcane rules. I'...
by JustinR
Wed Aug 16, 2017 6:44 am
Forum: Investing - Help with Personal Investments
Topic: California - clarification on taxes
Replies: 36
Views: 2572

Re: California - clarification on taxes

Thanks guys. I'm only talking about the very last dollar, so effective rate and itemizing is irrelevant right? Effective rate wouldn't be relevant, but itemizing would lower the marginal rate by 2.6% (.28 [marginal fed rate] * .093 [marginal state rate] = ~ .026). Marginal rate meaning the % tax pa...
by JustinR
Wed Aug 16, 2017 6:11 am
Forum: Investing - Help with Personal Investments
Topic: California - clarification on taxes
Replies: 36
Views: 2572

Re: California - clarification on taxes

Yes, but with some caveats: - The 6.2% social security tax only applies on the first $127,200 of earnings (2017). The 28% Federal bracket goes up to $191,650 (2017). So to the extent your taxable income falls between those two numbers, your marginal tax rate would decrease for dollars beyond $127,2...
by JustinR
Wed Aug 16, 2017 4:27 am
Forum: Investing - Help with Personal Investments
Topic: California - clarification on taxes
Replies: 36
Views: 2572

California - clarification on taxes

I'm trying to get something straight. Say I'm in the 28% federal marginal bracket. I'm in California. Does this mean, that for the last dollar I make from my employer , I lose this in taxes: Fed: 28% State: 9.3% SDI: 0.9% Social Security Tax: 6.2% Medicare Tax: 1.5% ------- 45.9% in taxes? So for ev...
by JustinR
Tue Aug 15, 2017 9:49 pm
Forum: Investing - Theory, News & General
Topic: XIRR - Non-reinvested dividends
Replies: 43
Views: 3888

Re: XIRR - Non-reinvested dividends

longinvest wrote:
Tue Aug 15, 2017 8:18 am
This wiki page and spreadsheet might be of interest to some readers: wiki: Calculating personal returns.
What's the benefit of your spreadsheet over XIRR?
by JustinR
Tue Aug 15, 2017 7:28 am
Forum: Investing - Theory, News & General
Topic: XIRR - Non-reinvested dividends
Replies: 43
Views: 3888

Re: XIRR - Non-reinvested dividends

Yes, it is a withdrawal from the fund. Sometimes someone will post that their fund's return does not match Vanguard's return number. The immediate question to the poster is "what did you do with dividends?". If the answer is "I spent them!" then the mystery is solved. That's a fund withdrawal. I di...
by JustinR
Sun Aug 13, 2017 11:16 pm
Forum: Investing - Theory, News & General
Topic: XIRR - Non-reinvested dividends
Replies: 43
Views: 3888

XIRR - Non-reinvested dividends

Are non-reinvested dividends considered withdrawals?
by JustinR
Mon Aug 07, 2017 8:49 pm
Forum: Investing - Theory, News & General
Topic: Final word: Bonds in Tax-Deferred or Taxable?
Replies: 10
Views: 1110

Re: Final word: Bonds in Tax-Deferred or Taxable?

It depends on the bond yield and the nominal value of taxes in dollars not just tax rate. When yields are 2-3% it may very well be advantageous to hold them in taxable account. WCI article is ok. Nothing new there. For authorative article read this from 2012: https://thefinancebuff.com/tax-efficien...
by JustinR
Mon Aug 07, 2017 8:03 pm
Forum: Investing - Theory, News & General
Topic: Final word: Bonds in Tax-Deferred or Taxable?
Replies: 10
Views: 1110

Final word: Bonds in Tax-Deferred or Taxable?

So the common advice here has always been to put Bonds in your retirement accounts, but I just read this article which says the exact opposite: https://www.whitecoatinvestor.com/asset-location-bonds-go-in-taxable/ The important concept to understand here, of course, is that assets grow faster in the...
by JustinR
Thu Jan 26, 2017 9:35 pm
Forum: Investing - Theory, News & General
Topic: Bid-ask Spread tips for a first time EFT buyer?
Replies: 27
Views: 2273

Re: Bid-ask Spread tips for a first time EFT buyer?

Thanks for the help guys! I ended up doing my first trade this morning. The spread was only 4 cents. I put a limit order for 10 shares at the bid price. It got filled maybe 20 seconds later. I guess for every buyer like me there's a seller willing to sell quick at the bid price. I'll probably do thi...
by JustinR
Wed Jan 25, 2017 11:03 pm
Forum: Investing - Theory, News & General
Topic: Bid-ask Spread tips for a first time EFT buyer?
Replies: 27
Views: 2273

Re: Bid-ask Spread tips for a first time EFT buyer?

Why are you using TD Ameritrade? Genuine curiosity. $25 to buy mutual funds is hilarious, but maybe you have some circumstance that I am unaware of. It's my HSA. I don't have a choice. Every HSA I've looked at has investment transaction fees. I don't do this normally haha. Usually I just use Vangua...
by JustinR
Wed Jan 25, 2017 10:49 pm
Forum: Investing - Theory, News & General
Topic: Bid-ask Spread tips for a first time EFT buyer?
Replies: 27
Views: 2273

Re: Bid-ask Spread tips for a first time EFT buyer?

I don't think setting a limit order with a limit price at the ask price is the thing to do for such small orders. But you can experiment and see what happens. Since you get free trades, you can submit more than one order. I think that if you submit a limit order for 15 (or 10 or 5) shares at the cu...
by JustinR
Wed Jan 25, 2017 10:28 pm
Forum: Investing - Theory, News & General
Topic: Bid-ask Spread tips for a first time EFT buyer?
Replies: 27
Views: 2273

Re: Bid-ask Spread tips for a first time EFT buyer?

I don't think setting a limit order with a limit price at the ask price is the thing to do for such small orders. But you can experiment and see what happens. Since you get free trades, you can submit more than one order. I think that if you submit a limit order for 15 (or 10 or 5) shares at the cu...
by JustinR
Wed Jan 25, 2017 12:10 am
Forum: Investing - Theory, News & General
Topic: Bid-ask Spread tips for a first time EFT buyer?
Replies: 27
Views: 2273

Re: Bid-ask Spread tips for a first time EFT buyer?

You can't buy fractional shares. And for such a small lot, you might as well place a limit order at the ask, as long as the spread is relatively small; there isn't much to be saved. Vanguard says that VGIT normally trades at a 6-cent spread, so buying 15 shares at double the normal spread will cost...
by JustinR
Tue Jan 24, 2017 11:16 pm
Forum: Investing - Theory, News & General
Topic: Bid-ask Spread tips for a first time EFT buyer?
Replies: 27
Views: 2273

Re: Bid-ask Spread tips for a first time EFT buyer?

toto238 wrote:It depends on volume. Are you planning on buying 100 shares or 100,000 shares? How you should trade depends heavily on how much you're trading.

$1,000 worth of VGIT (currently ~$65).

So 15 shares? Sometimes I'll only buy half that though.

Also, can you buy fractional shares in ETFs?
by JustinR
Tue Jan 24, 2017 11:00 pm
Forum: Investing - Theory, News & General
Topic: Bid-ask Spread tips for a first time EFT buyer?
Replies: 27
Views: 2273

Bid-ask Spread tips for a first time EFT buyer?

Signed up for commission-free ETFs on Ameritrade. I plan on buying all VGIT (Vanguard Intermediate-Term Government Bond ETF) I've never "day traded" before so all of this is confusing to me. According to Vanguard , I should set a limit order at slighly above the lowest ask? Is that right?
by JustinR
Sat Jan 21, 2017 4:18 pm
Forum: Investing - Theory, News & General
Topic: Help - Which of these bond funds are best for my bond allocation?
Replies: 10
Views: 1621

Re: Help - Which of these bond funds are best for my bond allocation?

You can look at Q4 2016 performance to see how the yield increases then affected these funds. For the three Vanguard government bond funds, total returns were: VGSH: -0.16% VGIT: -3.66% VGLT: -11.99% Source: Backtest Portfolio Asset Allocation Worst month was November, and VGSH actually recovered m...
by JustinR
Sat Jan 21, 2017 2:53 pm
Forum: Investing - Theory, News & General
Topic: Help - Which of these bond funds are best for my bond allocation?
Replies: 10
Views: 1621

Re: Help - Which of these bond funds are best for my bond allocation?

mhalley wrote:First thing is to eliminate the long term bond funds as we know interest rates are going to rise. Then you eliminate the short term ones due to the extremely low yield, leaving vgit.

Thank you!

Is SEC Yield% the number I look at for bond performance?
by JustinR
Fri Jan 20, 2017 10:44 pm
Forum: Investing - Theory, News & General
Topic: Help - Which of these bond funds are best for my bond allocation?
Replies: 10
Views: 1621

Help - Which of these bond funds are best for my bond allocation?

I don't know anything about bonds. I've narrowed it down to these bond funds for my HSA as they're largely exempt from state taxes (CA treats HSAs as taxable accounts). Which of these are appropriate for my bond allocation to hold until retirement? Current portfolio: Equities: 25% Total Stock Market...
by JustinR
Fri Jan 20, 2017 8:11 pm
Forum: Investing - Theory, News & General
Topic: Are TIPS good or bad?
Replies: 18
Views: 2073

Re: Are TIPS good or bad?

... Treasuries are non-taxable by states, so holding TIPS in an HSA in CA makes them and the account essentially tax-free. At least three states tax HSA contributions as regular income. Treasuries inside traditional IRAs and 401(k)s are taxable upon distribution by both the federal government and b...