Search found 612 matches

by JustinR
Tue Jun 19, 2018 4:59 am
Forum: Investing - Theory, News & General
Topic: Should I move my tax-efficient funds from Roth IRA to Taxable before or after distribution?
Replies: 16
Views: 796

Re: Should I move my tax-efficient funds from Roth IRA to Taxable before or after distribution?

How are you paying foreign taxes in a Roth? There are no taxes on assets held in a Roth. Not quite true. The fund managers will pay the foreign taxes before one even sees a single drop of dividends on international funds like VSS. One will not be able to claim the foreign tax credit for foreign tax...
by JustinR
Mon Jun 18, 2018 3:43 am
Forum: Investing - Theory, News & General
Topic: Ex-dividend days: Is there typically anything out of the ordinary?
Replies: 4
Views: 668

Ex-dividend days: Is there typically anything out of the ordinary?

Other than the price dropping due to the dividend, is there typically any out-of-the-ordinary market movement on that day? Such as due to everyone waiting to buy on that day.

Any studies been done on this? Or maybe it's impossible to tell either way.
by JustinR
Fri Jun 15, 2018 6:54 pm
Forum: Investing - Theory, News & General
Topic: Am I "market timing"?
Replies: 37
Views: 1834

Re: Am I "market timing"?

You changed the timing of your investing based on what the market is doing. Yes, it's market timing.
by JustinR
Fri Jun 15, 2018 1:46 am
Forum: Investing - Theory, News & General
Topic: Three-Fund Portfolio experiences?
Replies: 0
Views: 413

Three-Fund Portfolio experiences?

If you simplified to the Three-Fund Portfolio sometime during your lifetime, I have a few questions for you: How many years had you been investing before switching to it? What finally got you to switch? Have you ever regretted switching to it, or itched to have more to tinker with, even a little? Wh...
by JustinR
Wed Jun 13, 2018 11:58 pm
Forum: Investing - Theory, News & General
Topic: 1 Year Rule - Not allowed to execute new investment strategy until 1 year has passed
Replies: 27
Views: 2405

Re: 1 Year Rule - Not allowed to execute new investment strategy until 1 year has passed

Why 1 year? Because it's long and prevents you from reacting to short term performance of your funds, asset classes falling in and out of favor, or some flashy idea you just read about. For example, reits may be down recently, leading you to reevaluate holding them in the first place. So you may be...
by JustinR
Wed Jun 13, 2018 5:13 am
Forum: Investing - Theory, News & General
Topic: 1 Year Rule - Not allowed to execute new investment strategy until 1 year has passed
Replies: 27
Views: 2405

Re: 1 Year Rule - Not allowed to execute new investment strategy until 1 year has passed

I think it's an indication you haven't resolved what type of investor you are, if you're an active investor it may be to strict. If you're a passive investor and you find yourself trying to tweak things that frequently, you don't have accepting the markets return right either. You can be a passive ...
by JustinR
Wed Jun 13, 2018 4:46 am
Forum: Investing - Theory, News & General
Topic: 1 Year Rule - Not allowed to execute new investment strategy until 1 year has passed
Replies: 27
Views: 2405

Re: 1 Year Rule - Not allowed to execute new investment strategy until 1 year has passed

Sorry - I was up early and didn't read properly! However, are you thus allowing yourself to start tinkering very frequently, albeit in delays of 1 yr from "decision"? I'm not sure that's a good idea either. I (now) get it that you want to avoid quick moves, but wouldn't somehow grouping and coordin...
by JustinR
Wed Jun 13, 2018 4:23 am
Forum: Investing - Theory, News & General
Topic: 1 Year Rule - Not allowed to execute new investment strategy until 1 year has passed
Replies: 27
Views: 2405

Re: 1 Year Rule - Not allowed to execute new investment strategy until 1 year has passed

Er... ... haven't you violated the " not allowed to execute a change in asset allocation strategy until one year after formally declaring it " with changes 2 and 3? Execute is the key word. #2 and #3 are just declaring more changes during the first 1 year wait. Not executing anything. In other word...
by JustinR
Wed Jun 13, 2018 3:32 am
Forum: Investing - Theory, News & General
Topic: 1 Year Rule - Not allowed to execute new investment strategy until 1 year has passed
Replies: 27
Views: 2405

1 Year Rule - Not allowed to execute new investment strategy until 1 year has passed

It's said one of the worse things investors can do is constantly tinker with their investment strategy. Humans are wired to constantly tweak and optimize things. To prevent myself from doing this, I imposed this rule: I'm not allowed to execute a change in asset allocation strategy until one year af...
by JustinR
Mon Jun 11, 2018 2:45 pm
Forum: Investing - Theory, News & General
Topic: WSJ-- Next Stop for Mutual-Fund Fees: Zero
Replies: 40
Views: 4175

Re: WSJ-- Next Stop for Mutual-Fund Fees: Zero

Why are there Bogleheads here saying they don't mind it not being 0? :shock:

If the difference between what it is now and zero is "miniscule" or "noise," then why not just have it be zero?
by JustinR
Mon Jun 11, 2018 1:10 pm
Forum: Investing - Theory, News & General
Topic: Anyone else cheap like me and have to put new $s into the asset class that's down the most?
Replies: 23
Views: 2618

Re: Anyone else cheap like me and have to put new $s into the asset class that's down the most?

I put money into 401k monthly and always put it into whichever asset class is down the most that day in price or whichever is up the least. I feel like I always want to get the best deal. Have most in no fee ETFs. Any left over goes into the total bond index MF. So far things seem to balance out wi...
by JustinR
Mon Jun 11, 2018 5:55 am
Forum: Investing - Theory, News & General
Topic: Should I move my tax-efficient funds from Roth IRA to Taxable before or after distribution?
Replies: 16
Views: 796

Re: Should I move my tax-efficient funds from Roth IRA to Taxable before or after distribution?

Ugh. "Don't buy the dividend" vs "buy when you have the money." Which wins? Calculate how much tax you would pay by buying the dividend. Is it $1 more tax? Or is it $100? I think it will be closer to $1 and this decision will not be that meaningful on June 11. However, as you get closer to the ex-d...
by JustinR
Mon Jun 11, 2018 5:33 am
Forum: Investing - Theory, News & General
Topic: Should I move my tax-efficient funds from Roth IRA to Taxable before or after distribution?
Replies: 16
Views: 796

Re: Should I move my tax-efficient funds from Roth IRA to Taxable before or after distribution?

Also, if you have the cash NOW to buy equities, then you probably should according to most people: Buy when you have the money. Time in the market, yada yada yada. Then make the move after the distribution occurs to avoid buying (and paying tax on) the dividend. Ugh. "Don't buy the dividend" vs "bu...
by JustinR
Mon Jun 11, 2018 5:26 am
Forum: Investing - Theory, News & General
Topic: Should I move my tax-efficient funds from Roth IRA to Taxable before or after distribution?
Replies: 16
Views: 796

Re: Should I move my tax-efficient funds from Roth IRA to Taxable before or after distribution?

There is a difference whether you move them before or after the distribution. BTW, I would not call VSIAX tax-efficient, but tax-efficiency is all relative. I don't know what the tax efficiency of VEMAX is for you. I'm moving VEMAX (em) and VSIAX (scv) from Roth -> Taxable, to make room for more VS...
by JustinR
Mon Jun 11, 2018 5:01 am
Forum: Investing - Theory, News & General
Topic: Should I move my tax-efficient funds from Roth IRA to Taxable before or after distribution?
Replies: 16
Views: 796

Re: Should I move my tax-efficient funds from Roth IRA to Taxable before or after distribution?

Should I do this before or after the distribution? I plan on doing the same for VSIAX (Small-Cap Value). Any difference there? Yes, there is a difference. As a teacher, my answer to you is: Think about it. I don't see how you can write "since it's more tax-efficient" without being able to figure ou...
by JustinR
Mon Jun 11, 2018 4:16 am
Forum: Investing - Theory, News & General
Topic: Should I move my tax-efficient funds from Roth IRA to Taxable before or after distribution?
Replies: 16
Views: 796

Re: Should I move my tax-efficient funds from Roth IRA to Taxable before or after distribution?

Why are you even taking money out of the Roth? Do you need it for living expenses? If so, you will soon be spending it so it doesn't matter what it is in for a few days. If you don't need it for living expenses, I don't understand why you are withdrawing it. I'm not withdrawing it. I'm exchanging i...
by JustinR
Mon Jun 11, 2018 4:03 am
Forum: Investing - Theory, News & General
Topic: Should I move my tax-efficient funds from Roth IRA to Taxable before or after distribution?
Replies: 16
Views: 796

Re: Should I move my tax-efficient funds from Roth IRA to Taxable before or after distribution?

Longdog wrote:
Mon Jun 11, 2018 4:01 am
Where is the money currently sitting on the taxable side? Is it in cash or a fund that will also be making a distribution?
New money. Cash.
by JustinR
Mon Jun 11, 2018 3:21 am
Forum: Investing - Theory, News & General
Topic: Should I move my tax-efficient funds from Roth IRA to Taxable before or after distribution?
Replies: 16
Views: 796

Should I move my tax-efficient funds from Roth IRA to Taxable before or after distribution?

The June distribution is coming up (approx June 27). I want to move two funds from my Roth IRA to my taxable account, to make room for less tax-efficient funds in the Roth: Moving VEMAX (emerging markets) and VSIAX (small-cap value) from Roth -> Taxable, to make room for more VSS (international smal...
by JustinR
Fri Jun 08, 2018 5:54 am
Forum: Investing - Theory, News & General
Topic: Paul Merriman and Small Cap Value
Replies: 137
Views: 14718

Re: Paul Merriman and Small Cap Value

Is VSS (FTSE All-World ex-US Small-Cap) the best you can do at Vanguard for the international portion? It's not really valuey, it's in the middle. It is the best you can do, but honestly I don't think I'd bother. In addition to thinking of your portfolio using standard asset class allocation (e.g. ...
by JustinR
Thu Jun 07, 2018 1:59 am
Forum: Investing - Theory, News & General
Topic: Paul Merriman and Small Cap Value
Replies: 137
Views: 14718

Re: Paul Merriman and Small Cap Value

Is VSS (FTSE All-World ex-US Small-Cap) the best you can do at Vanguard for the international portion? It's not really valuey, it's in the middle.
by JustinR
Sat Jun 02, 2018 11:02 pm
Forum: Investing - Theory, News & General
Topic: TLH for absolute dummies [Tax Loss Harvesting]
Replies: 279
Views: 43702

Re: TLH for absolute dummies [Tax Loss Harvesting]

People who use TurboTax or TaxAct, is it easy to input your losses and is the $3000 automatically deducted for you?
by JustinR
Sat Jun 02, 2018 8:33 pm
Forum: Investing - Theory, News & General
Topic: Asset Location Gets REALLY Complex [Tax-ajusted asset allocation]
Replies: 21
Views: 2148

Re: Asset Location Gets REALLY Complex

First I put things with lots of tax drag in the Roth IRA/401k, like bonds and REIT.

Then I fill the rest of that tax deferred/free space in the order of the least tax efficient fund (such as VSS - international small cap).

Is that a good strategy?
by JustinR
Fri Jun 01, 2018 6:44 pm
Forum: Investing - Theory, News & General
Topic: Paul Merriman and Small Cap Value
Replies: 137
Views: 14718

Re: Paul Merriman and Small Cap Value

What's a good book or reading about tilting to factors, especially scv (also reit and em)?
by JustinR
Thu May 31, 2018 11:59 pm
Forum: Investing - Theory, News & General
Topic: Investment money is "Fungible"
Replies: 82
Views: 5521

Re: Investment money is "Fungible"

Remembering that money is fungible helps you avoid mental accounting. https://www.investopedia.com/university/behavioral_finance/behavioral5.asp Mental accounting refers to the tendency people have to separate their money into different accounts based on miscellaneous subjective criteria, including ...
by JustinR
Tue May 29, 2018 11:21 pm
Forum: Investing - Theory, News & General
Topic: ETF performing worse than its equivalent MF
Replies: 17
Views: 1340

Re: ETF performing worse than its equivalent MF

Are you asking about a single day? No, 1% isn't a huge deal for a single day. It happens frequently with foreign stocks, though not always to that amount. VWO is based on the market price as of 4pm EST. VEMAX is based on the price determined by the mutual fund -- which includes updated information ...
by JustinR
Tue May 29, 2018 11:04 pm
Forum: Investing - Theory, News & General
Topic: ETF performing worse than its equivalent MF
Replies: 17
Views: 1340

ETF performing worse than its equivalent MF

Today VWO (Emerging Markets ETF) is down 2.21%. Its equivalent mutual fund, VEMAX , is down only 1.28%. Why is VWO down 2.21% but the mutual fund equivalents (VEMAX, VEIEX) only down 1.28%? The value of the mutual fund is calculated daily based on prices of the underlying assets. The value of the ET...
by JustinR
Tue May 29, 2018 9:44 pm
Forum: Investing - Theory, News & General
Topic: U.S. stocks in freefall
Replies: 6626
Views: 1430771

Re: U.S. stocks in freefall

drk wrote:
Tue May 29, 2018 8:51 pm
livesoft wrote:
Tue May 29, 2018 5:04 pm
In the end, nothing I owned dropped even 2%.
You don't own any VEA, VWO, IEFA, or IEMG?
Why is VWO down 2.21% but the mutual fund equivalents (VEMAX, VEIEX) only down 1.28%?
by JustinR
Tue May 29, 2018 5:18 am
Forum: Investing - Theory, News & General
Topic: How important are International REITs?
Replies: 6
Views: 735

How important are International REITs?

If you hold a slice of REITs (in tax free space), how important is it to have some of it be international? I currently only hold US REIT (VGSLX), and am wondering if I should have half of it be international. Is it good for diversification and uncorrelation? Is it worth it even with the internationa...
by JustinR
Tue May 29, 2018 2:14 am
Forum: Investing - Theory, News & General
Topic: Help me better understand a non-dividend paying mutual fund
Replies: 7
Views: 924

Re: Help me better understand a non-dividend paying mutual fund

You're not missing out on anything. Dividends are bad. They're not the magical free lunch a lot of people think they are. When a dividend is paid, the value of the stock drops by that exact amount. So it's as if you sold the stock yourself. Except it's forced on you. In a taxable account, dividends ...
by JustinR
Mon May 28, 2018 10:24 pm
Forum: Investing - Theory, News & General
Topic: Renting vs Owning Your Home
Replies: 166
Views: 13277

Re: Renting vs Owning Your Home

I think there are too many variables to be able to say with any certainty whether a particular person with his/her own lifestyle and preferences will benefit more from one versus the other. For example: * What will house prices do? Usually up, but sometimes down. * If you buy, will you remain for a...
by JustinR
Mon May 28, 2018 9:49 pm
Forum: Investing - Theory, News & General
Topic: Thoughts on Paul Merriman's Portfolio
Replies: 71
Views: 20341

Re: Thoughts on Paul Merriman's Portfolio

Is the 10% REIT slice he recommends split into 5% US, 5% international? Or all US? Yes, if in tax deferred. 5% US, 5% international. No, if in taxable. Click on the various links to see the variances. Where does he mention international REITs? In the original paper, he doesn't break down the REIT c...
by JustinR
Mon May 28, 2018 9:27 pm
Forum: Investing - Theory, News & General
Topic: Thoughts on Paul Merriman's Portfolio
Replies: 71
Views: 20341

Re: Thoughts on Paul Merriman's Portfolio

Is the 10% REIT slice he recommends split into 5% US, 5% international?

Or all US?
by JustinR
Mon May 28, 2018 8:21 am
Forum: Investing - Theory, News & General
Topic: Renting vs Owning Your Home
Replies: 166
Views: 13277

Re: Renting vs Owning Your Home

For the vast majority of households in the US, their home is their most valuable asset by far. What does that tell you? What it doesn't tell you is that there are tens or scores of millions of households with large (mid to high-six figure) portfolios that they accumulated by renting, saving the dif...
by JustinR
Mon May 28, 2018 6:22 am
Forum: Investing - Help with Personal Investments
Topic: Should one use REITs
Replies: 54
Views: 8381

Re: Should one use REITs

REITS are good for diversification... and offer very low correlation with a few specific other components that you should consider too. A small amount of REIT added to a portfolio (your standard 3 fund) decreases volatility and increases return - Win - Win. US REIT has very low correlation to Inter...
by JustinR
Sun May 27, 2018 6:42 pm
Forum: Investing - Theory, News & General
Topic: 2017 Relative Tax Efficiency
Replies: 53
Views: 8442

Re: 2017 Relative Tax Efficiency

Suggestion: Add a row for "After Foreign Tax Credit" after row 17 that is "US taxes" minus "Foreign Tax Paid". That would give you a comparison of which funds to put in your tax-deferred accounts versus taxable. This is a fantastic idea. One might even title it "Tax Efficiency", as a percentage of ...
by JustinR
Sun May 27, 2018 6:26 am
Forum: Investing - Theory, News & General
Topic: 2017 Relative Tax Efficiency
Replies: 53
Views: 8442

Re: 2017 Relative Tax Efficiency

Suggestion: Add a row for "After Foreign Tax Credit" after row 17 that is "US taxes" minus "Foreign Tax Paid". That would give you a comparison of which funds to put in your tax-deferred accounts versus taxable. Another suggestion: Add a $ in front of the numbers for rows that are actual dollar val...
by JustinR
Sun May 27, 2018 5:34 am
Forum: Personal Finance (Not Investing)
Topic: Foreign Tax-Please check my math
Replies: 23
Views: 2270

Re: Foreign Tax-Please check my math

After analyizing my Investments using triceratop's Tax Efficiency analysis, I moved all my deferred international funds to my Brokerage account.Table below shows 2017 results I think are too good to be true. ............Div ... QDI ... NQDI ...%QDI... Ftpaid FPMAX .3392 ... 2067 .. 1325... 61% ... ...
by JustinR
Sun May 27, 2018 3:14 am
Forum: Personal Finance (Not Investing)
Topic: Foreign Tax-Please check my math
Replies: 23
Views: 2270

Re: Foreign Tax-Please check my math

After analyizing my Investments using triceratop's Tax Efficiency analysis, I moved all my deferred international funds to my Brokerage account.Table below shows 2017 results I think are too good to be true. ............Div ... QDI ... NQDI ...%QDI... Ftpaid FPMAX .3392 ... 2067 .. 1325... 61% ... ...
by JustinR
Sat May 26, 2018 9:58 pm
Forum: Investing - Theory, News & General
Topic: Thoughts on Paul Merriman's Portfolio
Replies: 71
Views: 20341

Re: Thoughts on Paul Merriman's Portfolio

For International equity I never was able to get any value tilt. Back in 2013 there were no international value ETFs, now there is the high dividend yield ETF which effectively is international large cap value. I don't like the high expense ratio on that one though (0.32%). I did use to split my no...
by JustinR
Sat May 26, 2018 3:07 am
Forum: Investing - Theory, News & General
Topic: If the US market cap was 5% instead of 52%, would the US vs International conversation change?
Replies: 40
Views: 2943

Re: If the US market cap was 5% instead of 52%, would the US vs International conversation change?

I'm literally not sure what it is you're asking people to imagine, or what other factors would play into this imaginary scenario. The question itself seems to be a strawman you created, but expect others to argue for you. :confused Your characterization that people with a 100% U.S. stock portfolio ...
by JustinR
Fri May 25, 2018 4:02 am
Forum: Investing - Theory, News & General
Topic: If the US market cap was 5% instead of 52%, would the US vs International conversation change?
Replies: 40
Views: 2943

Re: If the US market cap was 5% instead of 52%, would the US vs International conversation change?

Probably not. It is easy to form the hypothesis: "Is home country bias smaller in countries with small global market caps" and then google to see if the hypothesis is easily proved/disproved. It isn't like being 2.4% has affected the Australia vs International conversation. Being 3.4% hasn't affect...
by JustinR
Fri May 25, 2018 1:47 am
Forum: Investing - Theory, News & General
Topic: If the US market cap was 5% instead of 52%, would the US vs International conversation change?
Replies: 40
Views: 2943

If the US market cap was 5% instead of 52%, would the US vs International conversation change?

In the US vs International threads, there are often the same arguments repeated by the "home bias is ok if it's the US" crowd. Mostly that the US economy is awesome, efficient, and stable, while other countries are risky, corrupt, unstable, and not as awesome. Also, in the past US has outperformed I...
by JustinR
Thu May 24, 2018 9:33 pm
Forum: Investing - Theory, News & General
Topic: Renting vs Owning Your Home
Replies: 166
Views: 13277

Re: Renting vs Owning Your Home

Before I bought my house, it was a rental so I have a good idea of what it would actually rent for. Running the numbers comparing the cost of renting the house vs buying it, it looks like buying was about 8% less expensive than renting. I was in the house for 7 years, and had I moved out much soone...
by JustinR
Thu May 24, 2018 12:56 pm
Forum: Investing - Theory, News & General
Topic: Renting vs Owning Your Home
Replies: 166
Views: 13277

Re: Renting vs Owning Your Home

Renting is cheaper because apartments are a thing. In your post you're forcing the comparison of "apples to apples" when the whole point is that in real life you're able to choose between buying a house or renting something much smaller. If you run the math of renting the smallest apartment that you...
by JustinR
Mon May 21, 2018 11:19 pm
Forum: Investing - Theory, News & General
Topic: Do bonds make sense if you are more than 10 years from retirement?
Replies: 11
Views: 1395

Re: Do bonds make sense if you are more than 10 years from retirement?

Bonds provide very valuable stability to a portfolio. If you only focus on return but losing sight on risk, that is not a balanced view. This probably isn't the best time to look at bonds as "stable," but I understand your meaning. :-) The point is, if your time horizon is 20+ years out, and stocks...
by JustinR
Sun May 20, 2018 4:42 pm
Forum: Investing - Theory, News & General
Topic: China and EM [Emerging Market]
Replies: 30
Views: 3321

Re: China and EM

harvestbook wrote:
Thu Mar 29, 2018 9:31 am
I welcome diversification and a hedge against US bias. China and India are growing at a much faster pace than the US.

Image
Isn't the US market cap something like 52%?
by JustinR
Sat May 19, 2018 8:59 pm
Forum: Investing - Theory, News & General
Topic: Why do so many people quote "You will likely be in a lower tax bracket in retirement"
Replies: 491
Views: 28868

Re: Why do so many people quote "You will likely be in a lower tax bracket in retirement"

So far every hypothetical example of a Roth being better has mentioned pensions.

Do people still have pensions? I feel like this is an increasingly irrelevant thing in today's society that is muddying up discussions.
by JustinR
Sat May 19, 2018 8:03 pm
Forum: Investing - Theory, News & General
Topic: Challenge: guess the effect of rebalancing (by interval or bands) in 2008-2009
Replies: 35
Views: 3884

Re: Challenge: guess the effect of rebalancing (by interval or bands) in 2008-2009

JustinR, just to be sure I understood completely, when you said... Whether you follow this rule is up to you. were you referring to this rule... Rebalance once a year only, regardless of what the market does inbetween. or to this rule... only rebalance a fund if its allocation is off by 5% of what ...
by JustinR
Sat May 19, 2018 3:49 pm
Forum: Investing - Theory, News & General
Topic: Why do so many people quote "You will likely be in a lower tax bracket in retirement"
Replies: 491
Views: 28868

Re: Why do so many people quote "You will likely be in a lower tax bracket in retirement"

3) You can get all of those things when you do Roth conversion of your Trad. 401K at lower tax rate. I don't give a flip about the rate. Let's say I have 1.5 million in my R401k and you have 1.5 in your T401k. It costs me 0 to stuff that into a RIRA, and it costs you something like 500k (I didn't d...