Search found 1742 matches

by Ketawa
Mon Apr 24, 2017 6:35 pm
Forum: Personal Consumer Issues
Topic: Issue With Real Estate Agent (Seller)
Replies: 47
Views: 2950

Re: Issue With Real Estate Agent (Seller)

You can negotiate the commission, but I would stick to offering full commission to the buyer's agent and only negotiating on the listing agent's commission. I am a first time home seller and I just listed my home, so take this with a grain of salt, but I was able to negotiate a 1.5% commission to th...
by Ketawa
Sun Apr 23, 2017 11:08 pm
Forum: Investing - Theory, News & General
Topic: Larry Portfolio Equities: What % Each Market?
Replies: 46
Views: 2549

Re: Larry Portfolio Equities: What % Each Market?

Brief INTROD to the Larry Portfolio (LP) for those not familiar with it. The LP is: 1. Equities: USA Small Value + Developed Markets Small Value + Emergent Markets Value although my portfolio is tilted, I agree with those who diversify across the Globe market cap, in order to diversify risk, so eve...
by Ketawa
Sun Apr 23, 2017 12:00 pm
Forum: Local Chapters and Bogleheads Community
Topic: The next generation of Boglehead authors
Replies: 37
Views: 2272

Re: The next generation of Boglehead authors

Larry Swedroe isn't retiring, he just isn't posting on the forum anymore. You can find his writing at these places. http://www.etf.com/contributors/larry-swedroe https://www.advisorperspectives.com/search?author=Larry%20Swedroe http://blog.alphaarchitect.com/author/larryswedroe/
by Ketawa
Sun Apr 23, 2017 8:46 am
Forum: Investing - Theory, News & General
Topic: Larry Portfolio Equities: What % Each Market?
Replies: 46
Views: 2549

Re: Larry Portfolio Equities: What % Each Market?

geography is independent of tilting I'd like to know what the BHs think: what metric/rationale would you use when determining the USA/Developed/Emergent markets ratio for the LP, whose equities... ...are ALL a very small subset of the total world market cap? and ...might not necessarily adhere to t...
by Ketawa
Sat Apr 22, 2017 12:03 pm
Forum: Investing - Help with Personal Investments
Topic: Differential aggressiveness for ROTH vs 401K
Replies: 31
Views: 2277

Re: Differential aggressiveness for ROTH vs 401K

tadamsmar wrote:My question is:

Are there any scenarios where putting the Roth in an investment with a lower return would be a good idea?


If the only good fund in a 401k was an S&P 500 index fund, and a Roth IRA had to be used for the bond allocation.
by Ketawa
Sat Apr 22, 2017 11:55 am
Forum: Personal Finance (Not Investing)
Topic: Mortgage recast or higher down payment ?
Replies: 2
Views: 248

Re: Mortgage recast or higher down payment ?

Some lenders don't allow you to recast just because you want to. If this particular lender does allow you to recast at will without any fees and you can verify it in writing somewhere, then there is no difference between: 1. Putting down a small down payment, making an immediate extra payment toward...
by Ketawa
Sat Apr 22, 2017 11:30 am
Forum: Personal Consumer Issues
Topic: Six pack for barbecue?
Replies: 77
Views: 4577

Re: Six pack for barbecue?

It's pretty clear you're not much of a beer drinker. A 6-pack means bottled beers. I would not bring something like Bud or Bud Light. Bring a nice summertime beer like a Sierra Nevada Kellerweis Hefeweizen. Sierra Nevada has wide distribution and should be available just about anywhere for a standar...
by Ketawa
Sat Apr 22, 2017 11:04 am
Forum: Investing - Theory, News & General
Topic: Why are pensions revered, but annuities reviled?
Replies: 101
Views: 6894

Re: Why are pensions revered, but annuities reviled?

FInally even with SPIAs we are still in a low interest rate environment. The federal Thrift Savings Plan assumes a lifetime 2.375% annual interest rate on annuities purchased today. If you buy that annuity today you are locking in that rate for the rest of your life. Would have been great to lock i...
by Ketawa
Fri Apr 21, 2017 8:03 pm
Forum: Investing - Help with Personal Investments
Topic: Differential aggressiveness for ROTH vs 401K
Replies: 31
Views: 2277

Re: Differential aggressiveness for ROTH vs 401K

I'm not Kevin, but regardless... Same misunderstanding. If you disagree, read the Wiki article I linked to, and come back with an argument defending your position against what it explains. Kevin Kevin, I think I disagree with you for the following reason. When you talk about risk you need to include...
by Ketawa
Fri Apr 21, 2017 3:56 pm
Forum: Investing - Help with Personal Investments
Topic: Differential aggressiveness for ROTH vs 401K
Replies: 31
Views: 2277

Re: Differential aggressiveness for ROTH vs 401K

Hi Kevin, thanks for that link, because I was reading https://www.bogleheads.org/wiki/Tax-efficient_fund_placement If all else is equal (and it often isn't, because you may have different options in your 401(k) and your Roth IRA), it is slightly better to have the fund with the highest expected ret...
by Ketawa
Fri Apr 21, 2017 3:13 pm
Forum: Investing - Help with Personal Investments
Topic: The Value of Debt in Retirement
Replies: 16
Views: 1274

Re: The Value of Debt in Retirement

In retirement, you probably have plenty of fixed income investments. I don't see how borrowing money to invest it for a guaranteed lower return makes much sense unless you can figure out a way to arbitrage interest rates. That might be possible with a long term deductible mortgage and shorter durati...
by Ketawa
Wed Apr 19, 2017 6:59 pm
Forum: Investing - Theory, News & General
Topic: A test for when risk factors have positive expected returns
Replies: 36
Views: 2189

Re: A test for when risk factors have positive expected returns

Your hypothesis/test says that you believe value and small premiums, if they exist, are a result of behavioral errors. Can you name anything that would pass your test other than stocks as a whole? Otherwise, it sounds like you are merely making an argument for why you do not believe in value and sma...
by Ketawa
Wed Apr 19, 2017 11:25 am
Forum: Investing - Help with Personal Investments
Topic: Exchanging the S&P 500 for the TSM
Replies: 16
Views: 1935

Re: Exchanging the S&P 500 for the TSM

Just a note that one potential tax implication would be that IRA's can cause wash sales if you have TSM or S&P500 in a taxable account. You didn't mention if you have a taxable account but I just wanted to throw this detail out there. Wash sale would only apply if S&P500 was in a taxable ac...
by Ketawa
Wed Apr 19, 2017 8:46 am
Forum: Personal Consumer Issues
Topic: Tips on Uber
Replies: 64
Views: 4831

Re: Tips on Uber

I have taken 155 rides and have a passenger rating of 4.76. My average trip costs around $10-11.

What would my rating be over the next 150 rides if I tipped $2-$3, 4.95 or so? I would boost my rating to around 4.85 and spend $300-$450. I'll keep the money.
by Ketawa
Mon Apr 17, 2017 11:18 pm
Forum: Investing - Theory, News & General
Topic: Those that hold international equities at market-cap weight: what is your method?
Replies: 24
Views: 2176

Re: Those that hold international equities at market-cap weight: what is your method?

The split between regions for my international equities (Domestic/Intl Developed/Emerging) are set at market weights. I have a heavily tilted portfolio, so I'm definitely not holding market weight funds. But regardless of the specific funds I own, I would be forced to figure out an appropriate split...
by Ketawa
Sat Apr 15, 2017 11:11 am
Forum: Personal Finance (Not Investing)
Topic: Should I refinance my home?
Replies: 6
Views: 628

Re: Should I refinance my home?

Thank you for the response Ketawa... it is greatly appreciated and you brought up some points I didn't think about. We purchased the house for $470,000 and it appraised for $499,900. The seller and her agent didn't have a great relationship so the seller wanted to get out of the home which left us ...
by Ketawa
Sat Apr 15, 2017 11:03 am
Forum: Personal Consumer Issues
Topic: Same branded components for home theater?
Replies: 35
Views: 1887

Re: Same branded components for home theater?

Having matching brands is only important for the regular satellite speakers, e.g. the "5" in a 5.1 setup. You can mix and match brands between the receiver, television, subwoofer, Blu-ray player, etc.
by Ketawa
Sat Apr 15, 2017 10:49 am
Forum: Personal Finance (Not Investing)
Topic: Should I refinance my home?
Replies: 6
Views: 628

Re: Should I refinance my home?

You didn't give us the original purchase price of your home or the loan balances; that information would be helpful. It looks like you are only paying interest on the HELOC. This is a problem. You need to be making extra payments towards it to reduce the principal. A loan with that balance and inter...
by Ketawa
Fri Apr 14, 2017 12:36 pm
Forum: Investing - Theory, News & General
Topic: Delaying SS (or not) and the tax torpedo
Replies: 41
Views: 4358

Re: Delaying SS (or not) and the tax torpedo

... it is fundamentally wrong to look at the decision about delaying SS and consider it in the context of market returns. Delaying SS is like buying an inflation-adjusted SPIA... I am not sure I buy all of the logic, but the big issue is that an SPIA is not usually a good deal. No matter how "...
by Ketawa
Thu Apr 13, 2017 8:10 pm
Forum: Investing - Theory, News & General
Topic: Delaying SS (or not) and the tax torpedo
Replies: 41
Views: 4358

Re: Delaying SS (or not) and the tax torpedo

I haven't read everything in the thread, but it is fundamentally wrong to look at the decision about delaying SS and consider it in the context of market returns. Delaying SS is like buying an inflation-adjusted SPIA. Here is a previous post (I'm on my phone, so it's too complicated to create the ri...
by Ketawa
Wed Apr 12, 2017 9:58 pm
Forum: Investing - Theory, News & General
Topic: Lies, Damn Lies and Financial Statistics by Coy
Replies: 11
Views: 1880

Re: Lies, Damn Lies and Financial Statistics by Coy

IMO this is an example of 2 very intelligent and knowledgeable oversized egos sparring over a single throne on the Mount Olympus of factor investing products, a throne that only seats one. There is some meat to this argument--how pervasive is data mining in factor research and its products--but the...
by Ketawa
Wed Apr 12, 2017 6:13 pm
Forum: Personal Finance (Not Investing)
Topic: 20yr fixed, 30yr fixed, or 7/1 ARM
Replies: 48
Views: 3026

Re: 20yr fixed, 30yr fixed, or 7/1 ARM

I would use the ARM. If your plans change and you end up owning the home longer than 7 years, refinance. Taking the 30 year fixed instead of the 20 year fixed because you would rather invest the difference isn't a good idea, because the guaranteed higher interest rate for a 30 year fixed applies to ...
by Ketawa
Wed Apr 12, 2017 8:15 am
Forum: Personal Finance (Not Investing)
Topic: Help me understand 0% APR Credit Card Offers - Is it a good loan option?
Replies: 21
Views: 1612

Re: Help me understand 0% APR Credit Card Offers - Is it a good loan option?

This is something I have done a few times, but only for balance transfers with a 0% rate and zero fees. I wouldn't bother with cards offering a 0% interest rate on new purchases unless they had a worthwhile points or cash back program. The opportunity cost would be 2%-6% depending on the spending ca...
by Ketawa
Tue Apr 11, 2017 2:04 pm
Forum: Personal Finance (Not Investing)
Topic: VA loan with negative points, quick low cost refinance to ARM?
Replies: 5
Views: 346

Re: VA loan with negative points, quick low cost refinance to ARM?

I don't think buying a place for only three years is a good idea. While all real estate is local and your market may be different I think we are over due for a correction in most real estate markets. Even if the market stayed flat won't the transaction costs of selling off-set any rental savings? I...
by Ketawa
Tue Apr 11, 2017 1:51 pm
Forum: Personal Finance (Not Investing)
Topic: VA loan with negative points, quick low cost refinance to ARM?
Replies: 5
Views: 346

Re: VA loan with negative points, quick low cost refinance to ARM?

Two point to consider: 1) In some states, a lender making a "purchase money loan" (a loan whose proceeds are used to make the actual home purchase) can only seek recovery from the property itself -- not the borrower's other assets. In these situations, the lender (NFCU in your case) canno...
by Ketawa
Mon Apr 10, 2017 10:52 pm
Forum: Personal Finance (Not Investing)
Topic: VA loan with negative points, quick low cost refinance to ARM?
Replies: 5
Views: 346

VA loan with negative points, quick low cost refinance to ARM?

Thanks to the posters in the Choosing to put less than 20% down...why is this wrong? thread for giving me the idea for this potential strategy, since I hadn't previously considered using a HELOC for my goal. I will be moving this summer and plan to buy a condo rather than rent. I currently own a con...
by Ketawa
Sun Apr 09, 2017 9:17 am
Forum: Investing - Theory, News & General
Topic: Improving the TSP [for current participants]
Replies: 178
Views: 26919

Re: Improving the TSP [for current participants]

I am waiting to see a modification that will allow one to pull withdrawals from various accounts per OUR decisions, rather than proportionately according to our existing AA. If stocks are down, I don't want to pull an RMD from them, no matter what my AA might be. And if stocks are doing well, I'd l...
by Ketawa
Fri Apr 07, 2017 7:06 pm
Forum: Investing - Help with Personal Investments
Topic: Bonds in Combined Traditional/Roth 401k v Taxable
Replies: 8
Views: 510

Re: Bonds in Combined Traditional/Roth 401k v Taxable

Does it make more sense to increase my bond allocation in the 401k (with some portion of the bonds ending up in the Roth 401k) or to buy a tax exempt muni bond fund in my taxable? It's not going to hurt putting a bit of bonds in Roth 401k. I would do that long before putting bonds into taxable if t...
by Ketawa
Fri Apr 07, 2017 7:03 pm
Forum: Investing - Help with Personal Investments
Topic: Bonds in Combined Traditional/Roth 401k v Taxable
Replies: 8
Views: 510

Re: Bonds in Combined Traditional/Roth 401k v Taxable

I have to disagree with parts of the previous post. First of all, tax-adjusting your asset allocation is a smart thing to do and not really all that difficult. Sure, we can't predict future tax rates but I believe an estimate is better than none. Once you do that, you will want to have the assets t...
by Ketawa
Thu Apr 06, 2017 6:20 pm
Forum: Investing - Help with Personal Investments
Topic: Bonds in Combined Traditional/Roth 401k v Taxable
Replies: 8
Views: 510

Re: Bonds in Combined Traditional/Roth 401k v Taxable

Traditional and Roth accounts are equal after correctly accounting for your estimated marginal tax rate in retirement. Assets held in Roth accounts are more risky since gains or losses will affect your retirement more than the same pre-tax gains or losses in a Traditional account. If you put equitie...
by Ketawa
Thu Apr 06, 2017 1:45 pm
Forum: Investing - Help with Personal Investments
Topic: Need more fixed income in tax-deferred accounts
Replies: 19
Views: 1218

Re: Need more fixed income in tax-deferred accounts

I'm new to this forum and would greatly appreciate your advice on the following: I'm rebalancing our portfolio, and it looks like we need more fixed income, presumably in our retirement accounts to avoid marginal tax rates of 33% on interest. I'm thinking about Vanguard's Short Term Bond Index. Am ...
by Ketawa
Wed Apr 05, 2017 9:03 pm
Forum: Investing - Help with Personal Investments
Topic: How Do I Factor-Diversify for Cheap?
Replies: 8
Views: 693

Re: How Do I Factor-Diversify for Cheap?

As for my questions and concerns: - Do I "tilt" towards factors, but retain total market exposure? Or is it safe to completely ignore total stock market, since beta is a component of long-only factor funds anyway? - Are domestic/foreign factors independent? That is, would I be sufficientl...
by Ketawa
Wed Apr 05, 2017 2:31 pm
Forum: Personal Finance (Not Investing)
Topic: Suggestions for easy/fast cash-out car loan refinance?
Replies: 8
Views: 381

Re: Suggestions for easy/fast cash-out car loan refinance?

I paid cash for my car in 2008. In 2013, I decided to send PenFed my title and get cash on a car loan to invest at 5% FDIC insured on Mango/UnionPlus/NetSpend prepaid cards. It was pretty easy and I think they offered 100% of NADA value (not sure the exact terminology). Since then, I have done multi...
by Ketawa
Tue Apr 04, 2017 4:53 am
Forum: Investing - Theory, News & General
Topic: Does your asset allocation derate tax-deferred holdings to account for future tax liability?
Replies: 163
Views: 6973

Re: Does your asset allocation derate tax-deferred holdings to account for future tax liability?

But isn't this as good a reason as any to prefer high-expected-return assets in a Roth account? Many peoples' tax rate in retirement will be determined largely by how much they are withdrawing from tax-deferred accounts, so if they manage to grow their Roth accounts very successfully and put the sa...
by Ketawa
Sat Apr 01, 2017 10:09 am
Forum: Investing - Theory, News & General
Topic: Does your asset allocation derate tax-deferred holdings to account for future tax liability?
Replies: 163
Views: 6973

Re: Does your asset allocation derate tax-deferred holdings to account for future tax liability?

Since I only have taxable and Roth do you think I need to think about tax efficiency or tax loss in the Roth account. In the Roth account I have been considering risk and return and tax efficiency putting bonds, stocks and REITs in the Roth. Stocks are not recommended by the Prof in the Roth if I r...
by Ketawa
Sat Apr 01, 2017 9:41 am
Forum: Investing - Help with Personal Investments
Topic: Fidelity advisor said I invested in too much S&P 500 at once for my portfolio; DCA it?
Replies: 75
Views: 3876

Re: Fidelity advisor said I invested in too much S&P 500 at once for my portfolio; DCA it?

So if you DCA it and the market continues to go up the whole time; when you are finished DCA'ing it and it is all in at the market high will you pull it out and start over? Think through the permutations here - I think what you really need to do is just adjust your AA. As I have stated more than on...
by Ketawa
Fri Mar 31, 2017 9:43 pm
Forum: Investing - Help with Personal Investments
Topic: Fidelity advisor said I invested in too much S&P 500 at once for my portfolio; DCA it?
Replies: 75
Views: 3876

Re: Fidelity advisor said I invested in too much S&P 500 at once for my portfolio; DCA it?

If you pull the money out and the market continues to climb for another 2 or 3 years how will that make you feel Good point. Or if you leave it in and we have a 35% Bear market in the next 12 months. Pretty sure that whatever you decide if the market goes the other way you deal with some level of d...
by Ketawa
Fri Mar 31, 2017 8:54 pm
Forum: Investing - Theory, News & General
Topic: EE bonds vs F or G Fund vs Total Bond
Replies: 57
Views: 2931

Re: EE bonds vs F or G Fund vs Total Bond

The idea of an alternative to investing in EE bonds being to prepay mortgage interest really got me thinking. The hypothetical scenario is an investor who has $10K extra every year available to invest in EE bonds, or $833 per month. Consider a person who has a 25% marginal tax rate and a $400K mortg...
by Ketawa
Fri Mar 31, 2017 7:07 pm
Forum: Investing - Theory, News & General
Topic: EE bonds vs F or G Fund vs Total Bond
Replies: 57
Views: 2931

Re: EE bonds vs F or G Fund vs Total Bond

So I'm not solely interested in a maximum return. I'm interested in the maximum return between the two profiles I listed above that share the same risk. Very many people think the first one with only the G fund is the better option. They are choosing to not buy EE bonds because they think that a be...
by Ketawa
Fri Mar 31, 2017 11:20 am
Forum: Investing - Theory, News & General
Topic: EE bonds vs F or G Fund vs Total Bond
Replies: 57
Views: 2931

Re: EE bonds vs F or G Fund vs Total Bond

The explanation of the G fund using "special non-marketable securities" is very helpful. But the second part is kind of explaining around what I'm trying to get to because I'm considering the risk across two options to be the same. Two hypothetical portfolios (obviously the EE portion is ...
by Ketawa
Fri Mar 31, 2017 9:53 am
Forum: Investing - Theory, News & General
Topic: EE bonds vs F or G Fund vs Total Bond
Replies: 57
Views: 2931

Re: EE bonds vs F or G Fund vs Total Bond

I'm not following what you're saying here so my questions may sound dumb. I think I understand the difference between EE and other fixed income investments and the duration aspect. Is your assumption that rates will get better over the 20 year period? And that's why I want to be in other investment...
by Ketawa
Fri Mar 31, 2017 9:17 am
Forum: Investing - Theory, News & General
Topic: Does your asset allocation derate tax-deferred holdings to account for future tax liability?
Replies: 163
Views: 6973

Re: Does your asset allocation derate tax-deferred holdings to account for future tax liability?

I personally use "current" rates, in that if taxes don't change, I will be somewhere around the 25% federal tax bracket in retirement. I expect to have a military pension, and will be paying some kind of marginal tax rate on my Traditional withdrawals. It might be a little lower, it might ...
by Ketawa
Fri Mar 31, 2017 9:11 am
Forum: Investing - Theory, News & General
Topic: EE bonds vs F or G Fund vs Total Bond
Replies: 57
Views: 2931

Re: EE bonds vs F or G Fund vs Total Bond

Thanks again for the insight. My approach starts from the simple 80/20 stock/bond allocation. If i'm going to have 20% bonds now, and my bond holdings are only going to increase as I get older, why not choose the currently highest yielding bonds? Especially, if a 20 year bond fits almost ideally to...
by Ketawa
Fri Mar 31, 2017 9:00 am
Forum: Investing - Theory, News & General
Topic: EE bonds vs F or G Fund vs Total Bond
Replies: 57
Views: 2931

Re: EE bonds vs F or G Fund vs Total Bond

Thanks for the response. What is the 2.375% number? I looked at TSP and the 10 year return for the G fund is 2.63%. The five and one year returns are 1.9 and 1.8%. What sort of returns would someone have to get over the next 10 years to catch up to EE bonds? And it's interesting people who are worr...
by Ketawa
Thu Mar 30, 2017 10:44 pm
Forum: Investing - Theory, News & General
Topic: EE bonds vs F or G Fund vs Total Bond
Replies: 57
Views: 2931

Re: EE bonds vs F or G Fund vs Total Bond

The G Fund interest rate is currently 2.375%. It's typically around the yield of 8 year Treasuries, with zero credit risk and zero duration. EE bonds yield 3.524% after 20 years. But regardless, I don't think it's worth it to lock yourself into an investment for 20 years when you could earn 115 bp l...
by Ketawa
Thu Mar 30, 2017 11:42 am
Forum: Investing - Theory, News & General
Topic: Does your asset allocation derate tax-deferred holdings to account for future tax liability?
Replies: 163
Views: 6973

Re: Does your asset allocation derate tax-deferred holdings to account for future tax liability?

That is not the case - your conclusion does not logically flow from the premise. I care about tax location decisions - that doesn't meant I have to also care about tax-adjusting my balances for asset allocation purposes or think it is necessary for controlling portfolio risk. Nowhere have I said th...
by Ketawa
Thu Mar 30, 2017 11:15 am
Forum: Investing - Theory, News & General
Topic: Does your asset allocation derate tax-deferred holdings to account for future tax liability?
Replies: 163
Views: 6973

Re: Does your asset allocation derate tax-deferred holdings to account for future tax liability?

I'm not sure what kind of comment you are looking for. I think the 'riskiness' that you are measuring there (certainty of end value due to tax liability) is not the kind of risk I am trying to control with my asset allocation. For example, by that measure bonds can be seen as riskier than equities ...
by Ketawa
Thu Mar 30, 2017 10:52 am
Forum: Investing - Theory, News & General
Topic: Does your asset allocation derate tax-deferred holdings to account for future tax liability?
Replies: 163
Views: 6973

Re: Does your asset allocation derate tax-deferred holdings to account for future tax liability?

No it hasn't because I will rebalance my portfolio to my preferred 50/50 allocation - problem solved. But if you sold it in 30 weeks instead of 30 years it would still be 67/33. So the idea is to rebalance it as you said, but every year or so not after 30 years have elapsed with your AA way more th...
by Ketawa
Wed Mar 29, 2017 9:54 pm
Forum: Investing - Theory, News & General
Topic: Does your asset allocation derate tax-deferred holdings to account for future tax liability?
Replies: 163
Views: 6973

Re: Does your asset allocation derate tax-deferred holdings to account for future tax liability?

There is no control measure to benchmark an account that would not have to manage tax differences between Roth and traditional accounts. That is the only way to judge whether tax-adjusted asset allocation creates a skew or corrects a skew. I specifically requested you to include one. Define your te...
by Ketawa
Wed Mar 29, 2017 8:48 pm
Forum: Investing - Theory, News & General
Topic: Does your asset allocation derate tax-deferred holdings to account for future tax liability?
Replies: 163
Views: 6973

Re: Does your asset allocation derate tax-deferred holdings to account for future tax liability?

How does this compare to an investor who correctly applies tax-adjusted asset allocation? I haven't done the work yet to demonstrate in my spreadsheet that applying tax-adjusted asset allocation will eliminate this difference in risk between Roth and Traditional accounts. I've spent enough time on ...

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