Search found 402 matches

by MotoTrojan
Wed Jun 28, 2017 11:15 am
Forum: Investing - Theory, News & General
Topic: U.S. stocks in freefall
Replies: 3527
Views: 920027

Re: U.S. stocks in freefall

Everybody, I am up over 1% today, lets keep this thread on topic :sharebeer .
by MotoTrojan
Tue Jun 27, 2017 4:57 pm
Forum: Investing - Theory, News & General
Topic: U.S. stocks in freefall
Replies: 3527
Views: 920027

Re: U.S. stocks in freefall

Uncle Pennybags wrote:
HomerJ wrote:Why is one stock (Verizon?) 15% of your portfolio?

It's not anymore. :P
It's a long story about a poison pill LESOP and tax avoidance.
I look on the bright side, VZ dividend is now 5.13%.
That 18% loss is really 12.6% after taxes as it is in a pretax account.


Not a loss until you sell.
by MotoTrojan
Sun Jun 25, 2017 10:47 pm
Forum: Personal Finance (Not Investing)
Topic: Just found out my wife is pregnant.
Replies: 15
Views: 2114

Re: Just found out my wife is pregnant.

Consider funding your Roth in cash equivalents as an emergency fund. This way you have a possible chance to not lose that tax advantaged space, should you not end up needing to draw from it. If/when you can back it up with a new emergency fund, you can reallocate the cash into your desired growth AA...
by MotoTrojan
Sun Jun 25, 2017 8:43 pm
Forum: Investing - Theory, News & General
Topic: "Automation, Robotics & AI" ETF
Replies: 12
Views: 711

Re: "Automation, Robotics & AI" ETF

Hi BHs, Is there's any "Automation, Robotics & AI" ETF available? I think this is the future and would like to invest 5% of my portfolio in this area. Can anyone recommend me some ETF for this? Thank you. You might check out some Motif portfolios, for instance https://www.motifinvesti...
by MotoTrojan
Thu Jun 22, 2017 9:32 pm
Forum: Investing - Theory, News & General
Topic: Stock Market become safer as holding periods lengthen - Maybe just a bias
Replies: 49
Views: 3810

Re: Stock Market become safer as holding periods lengthen - Maybe just a bias

Then why doesn't everybody keep their entire portfolio in FDIC insured 1% savings accounts? Because growth is important. Note, I did not say that a 50% drop (or multiple) would not make you worse off during a specific time-span, but IF an equity premium of any amount persists, there is a finite-tim...
by MotoTrojan
Thu Jun 22, 2017 4:57 pm
Forum: Investing - Help with Personal Investments
Topic: Tax efficient asset allocation across multiple accounts
Replies: 9
Views: 646

Re: Tax efficient asset allocation across multiple accounts

You can always sell taxable assets and swap into 401k. Even if they are down, you're fine, as you gain capital losses (less taxes) and purchase the 401k shares at the same dollar amount. You'll just have to be careful about wash sales, and likely purchase a different, but similar fund. Your AA is re...
by MotoTrojan
Thu Jun 22, 2017 11:41 am
Forum: Investing - Theory, News & General
Topic: Your Favorite Portfolio Tilts
Replies: 86
Views: 6076

Re: Your Favorite Portfolio Tilts

James B. Stewart's current article 'An Index-Fund Evangelist Is Straying From His Gospel', on Burton Malkiel's embrace of smart beta. https://www.nytimes.com/2017/06/22/business/burton-malkiel-investment-stock-index-funds.html?ref=business Smart beta has its critics, including Mr. Arnott, viewed by...
by MotoTrojan
Thu Jun 22, 2017 10:41 am
Forum: Investing - Theory, News & General
Topic: Stock Market become safer as holding periods lengthen - Maybe just a bias
Replies: 49
Views: 3810

Re: Stock Market become safer as holding periods lengthen - Maybe just a bias

The risk in investing in the stock market over the next year is identical, whether that is your very first year of investing, or you have held the position since 1987. Yet, annualized volatility is different in the two cases. Averaging over 30 years naturally yields a lower value. Of course, but if...
by MotoTrojan
Thu Jun 22, 2017 10:39 am
Forum: Investing - Theory, News & General
Topic: Stock Market become safer as holding periods lengthen - Maybe just a bias
Replies: 49
Views: 3810

Re: Stock Market become safer as holding periods lengthen - Maybe just a bias

http://www.marketwatch.com/story/stock-market-risk-is-much-greater-than-we-thought-2017-06-15 One reason is that the statistical modeling required to estimate the level of future uncertainty is quite complex, since—by definition—it’s uncertain. In the face of that complexity, most of us have chosen...
by MotoTrojan
Thu Jun 22, 2017 10:30 am
Forum: Investing - Theory, News & General
Topic: Your Favorite Portfolio Tilts
Replies: 86
Views: 6076

Re: Your Favorite Portfolio Tilts

James B. Stewart's current article 'An Index-Fund Evangelist Is Straying From His Gospel', on Burton Malkiel's embrace of smart beta. https://www.nytimes.com/2017/06/22/business/burton-malkiel-investment-stock-index-funds.html?ref=business Smart beta has its critics, including Mr. Arnott, viewed by...
by MotoTrojan
Thu Jun 22, 2017 10:09 am
Forum: Investing - Theory, News & General
Topic: Stock Market become safer as holding periods lengthen - Maybe just a bias
Replies: 49
Views: 3810

Re: Stock Market become safer as holding periods lengthen - Maybe just a bias

http://www.marketwatch.com/story/stock-market-risk-is-much-greater-than-we-thought-2017-06-15 One reason is that the statistical modeling required to estimate the level of future uncertainty is quite complex, since—by definition—it’s uncertain. In the face of that complexity, most of us have chosen...
by MotoTrojan
Thu Jun 22, 2017 10:07 am
Forum: Investing - Help with Personal Investments
Topic: How much to invest in 401k vs taxable account.
Replies: 51
Views: 4312

Re: How much to invest in 401k vs taxable account.

Just commenting to say there's no reason your Roth should be all bonds. Mine is all equities. If anything, tax-deferred (trad 401k) is better for bonds generally.

Another vote to fill the Roth plus as much of 401k as possible (sounds like close to 18k after your tax deduction).
by MotoTrojan
Wed Jun 21, 2017 11:45 pm
Forum: Investing - Help with Personal Investments
Topic: 500K Retirement Account Milestone
Replies: 27
Views: 4446

Re: 500K Retirement Account Milestone

Congratulations! I like the chart - will try to model our own progress similarly. Don't know why I never considered creating a chart before. It is nice to see that divergence between the contributions and total assets! I've followed my progress in in a spreadsheet for several years, but a visual re...
by MotoTrojan
Sat Jun 17, 2017 2:08 pm
Forum: Investing - Theory, News & General
Topic: Your Favorite Portfolio Tilts
Replies: 86
Views: 6076

Re: Your Favorite Portfolio Tilts

I'll play, I try to follow Taylor's advice re the three fund portfolio with two exceptions. 1) I have some money in a VG small cap value fund in my Roth 2) I have some money in TIAA Real Estate in my 403B with my current employer For now I am keeping both and I will not let either grow to more than...
by MotoTrojan
Wed Jun 14, 2017 7:17 pm
Forum: Personal Finance (Not Investing)
Topic: Walk me through a backdoor Roth?
Replies: 42
Views: 1840

Re: Walk me through a backdoor Roth?

You can't add $30K at one time to an IRA, so you can't backdoor roth $30K in cash. You have to accumulate it in an IRA.
by MotoTrojan
Tue Jun 13, 2017 3:07 pm
Forum: Investing - Help with Personal Investments
Topic: Future Investments-Placement for tax efficiency
Replies: 4
Views: 371

Re: Future Investments-Placement for tax efficiency

Here is my plan for my future investment contributions (they do not match my current AA which is much more conservative) to give me a rising glide path. Is this the correct placement for tax efficiency? (Yes, I decided to suck it up and invest some in Developed Markets and Emerging Markets, at leas...
by MotoTrojan
Tue Jun 13, 2017 2:45 pm
Forum: Investing - Help with Personal Investments
Topic: What to do with 18k in Cash?
Replies: 19
Views: 1568

Re: What to do with 18k in Cash?

Why not max out your Roth IRA for yourself in one lump deposit and spend the rest of the money on your car loan? We definitely have enough to split it. I'll use dollar-cost averaging to fill out a Roth for myself to minimize any lows/highs. It's definitely possible to do both, just need to save a b...
by MotoTrojan
Sun Jun 11, 2017 11:27 pm
Forum: Investing - Help with Personal Investments
Topic: Looking for safe ETFs for 200K cash sitting in brokerage accounts.
Replies: 38
Views: 4591

Re: Looking for safe ETFs for 200K cash sitting in brokerage accounts.

Terrifying thread to be frank. Hopefully you can wait it out. Consider adding an international ETF; my favorite is VXUS as it is all inclusive, including small caps and emerging markets. Pick an allocation of it relative to SPY, and stick with that % for life.
by MotoTrojan
Sun Jun 11, 2017 7:07 pm
Forum: Personal Finance (Not Investing)
Topic: Small company 401k
Replies: 30
Views: 1657

Re: Small company 401k

Checkout Employee Fiduciary. They cater to smaller companies and are ridiculously cheap from what I've seen. Offer low cost Vanguard and similar funds too. I plan to propose them to my small startups founders when the time is right.

Looks to be on the order of $1500/yr + 8 basis points.
by MotoTrojan
Sun Jun 11, 2017 11:33 am
Forum: Investing - Theory, News & General
Topic: Tax-loss Harvesting into Tax-advantaged
Replies: 11
Views: 671

Re: Tax-loss Harvesting into Tax-advantaged

It's probably mental accounting. What would you have done with Roth space if you hadn't had a TLH? If the answer is "put it in stocks", then it's not relevant. DCA the full space over a year as I get paychecks (along with 401K DCA). The TLH in early months would just enable me to fill Rot...
by MotoTrojan
Sun Jun 11, 2017 10:34 am
Forum: Investing - Help with Personal Investments
Topic: Starting a Three-Fund Portfolio - which funds?
Replies: 27
Views: 3750

Re: Starting a Three-Fund Portfolio - which funds?

Need $3k for Vanguard brokerage account, too False. Used to be. Do you know when they changed their rule? I use a TR fund right now, so I never had to bother with it. Not sure. Maybe when they activated the new system that forced mutual fund owners into brokerage accounts. I opened mine in February...
by MotoTrojan
Sun Jun 11, 2017 2:18 am
Forum: Investing - Help with Personal Investments
Topic: Starting a Three-Fund Portfolio - which funds?
Replies: 27
Views: 3750

Re: Starting a Three-Fund Portfolio - which funds?

gvsucavie03 wrote:
Need $3k for Vanguard brokerage account, too


False.
by MotoTrojan
Sat Jun 10, 2017 4:39 pm
Forum: Investing - Theory, News & General
Topic: Larry Swedroe: Persistence Of The Value Premium
Replies: 47
Views: 4842

Re: Larry Swedroe: Persistence Of The Value Premium

How do you best compare the relative performance of growth vs. value, and/or big vs. small?

As a new boglehead/investor, I see the crazy SCV run-up that occurred around election, and feel it has done well in the true near-term sense.
by MotoTrojan
Fri Jun 09, 2017 11:33 pm
Forum: Investing - Help with Personal Investments
Topic: Converting a Windfall to Tax Advantaged Accounts
Replies: 25
Views: 1875

Re: Converting a Windfall to Tax Advantaged Accounts

I'm going to be in a similar situation soon as well (home sale plus more tax advantaged space than we can otherwise fill), so I've also been giving this some thought. My initial gut reaction is the same as mudpuppy in that this is money you will be living off of in the short term, so it shouldn't b...
by MotoTrojan
Fri Jun 09, 2017 9:40 pm
Forum: Investing - Theory, News & General
Topic: Tax-loss Harvesting into Tax-advantaged
Replies: 11
Views: 671

Re: Tax-loss Harvesting into Tax-advantaged

You are letting mental accounting complicate the situation. Independently you should contribute to your tax-advantaged space as early as you can, and independently it is beneficial to harvest tax losses. Putting them together doesn't magnify the independent advantages. Fair enough, I likely am. But...
by MotoTrojan
Fri Jun 09, 2017 8:43 pm
Forum: Investing - Theory, News & General
Topic: Larry Swedroe: Persistence Of The Value Premium
Replies: 47
Views: 4842

Re: Larry Swedroe: Persistence Of The Value Premium

I've always considered it "nonsense". If it was truly a premium the people with the wherewithal and smarts would have arbitraged it away already, long ago. Kind of like how they've arbitraged away the equity premium over bonds? Or bond premium over cash equivalents? Risk is compensated. L...
by MotoTrojan
Fri Jun 09, 2017 8:34 pm
Forum: Investing - Help with Personal Investments
Topic: Converting a Windfall to Tax Advantaged Accounts
Replies: 25
Views: 1875

Re: Converting a Windfall to Tax Advantaged Accounts

My only suggestion: Invest in the taxable account with your normal TLH partner/alternate, rather than what you'd ideally hold long-term. Ex: You like Total Stock Market. Buy S&P 500 in taxable, sell it every month to buy Total Stock market in tax-advantaged, regardless of whether it is up or do...
by MotoTrojan
Fri Jun 09, 2017 8:17 pm
Forum: Investing - Theory, News & General
Topic: Tax-loss Harvesting into Tax-advantaged
Replies: 11
Views: 671

Re: Tax-loss Harvesting into Tax-advantaged

Anything works with tax-loss harvesting. In the OP's 50% drop situation, one would be rebalancing from bonds to equities in tax-advantaged anyways. So one would not need to worry about contributions to do this. True, but if we assume one also has additional tax-advantaged space not yet filled, you ...
by MotoTrojan
Fri Jun 09, 2017 7:57 pm
Forum: Investing - Theory, News & General
Topic: Tax-loss Harvesting into Tax-advantaged
Replies: 11
Views: 671

Re: Tax-loss Harvesting into Tax-advantaged

As long as the amount that you're TLH'ing is smaller than the limit on your Roth contribution for the current year, I don't see anything wrong with it. That is, of course, assuming you've had enough earned income that year to allow the planned Roth contribution. Of course if the limit is less than ...
by MotoTrojan
Fri Jun 09, 2017 7:43 pm
Forum: Investing - Help with Personal Investments
Topic: Converting a Windfall to Tax Advantaged Accounts
Replies: 25
Views: 1875

Re: Converting a Windfall to Tax Advantaged Accounts

This spurred me to generate an entirely new thread but upon reading it more in depth, maybe that wasn't necessary as it is still fairly on-topic; oh well. Anyways, this plan seems pretty brilliant actually... even if the market goes down you can TLH monthly into the tax-advantaged space. This is ver...
by MotoTrojan
Fri Jun 09, 2017 7:38 pm
Forum: Investing - Theory, News & General
Topic: Tax-loss Harvesting into Tax-advantaged
Replies: 11
Views: 671

Tax-loss Harvesting into Tax-advantaged

Another post spurred this thought, but I was so intrigued by this particular aspect of the broader question, that I figured I'd make a new thread. TLH'ing isn't really eliminating the tax payment, since your basis is getting reset. That is, unless you reset your basis in a tax-advantaged account! Th...
by MotoTrojan
Thu Jun 08, 2017 12:22 am
Forum: Investing - Help with Personal Investments
Topic: Pay off debts or Invest?
Replies: 44
Views: 2591

Re: Pay off debts or Invest?

I would pay anything over 3% off personally. That is a pretty good return. Do some research (Wiki, etc...) on tax-efficient fund placement. A target retirement or lifecycle fund is not a great choice for a taxable account due to the bonds. You would be better off holding Total US and/or Total Intern...
by MotoTrojan
Wed Jun 07, 2017 6:15 pm
Forum: Investing - Help with Personal Investments
Topic: Investment advice for taxable account
Replies: 11
Views: 913

Re: Investment advice for taxable account

Assuming we go ahead with investing this money, are there other Vanguard/Fidelity funds that we should consider? I'd go with the Total US & Total Int mutual funds you mentioned in the first post (bonds aren't great in taxable, maybe a muni, or a CD/cash-equivalent). But again, 5-10 years is too...
by MotoTrojan
Tue Jun 06, 2017 1:13 pm
Forum: Personal Finance (Not Investing)
Topic: Budgeting
Replies: 47
Views: 3175

Re: Budgeting

Alright, I am convinced enough to try and get this setup before I get too married to Mint. I do like the functionality of being able to move cash around, and take from pots easily, if I overspend in some places. I take that back. At first glance, do I need to manually input/categorize all of my spe...
by MotoTrojan
Tue Jun 06, 2017 12:58 pm
Forum: Personal Finance (Not Investing)
Topic: Budgeting
Replies: 47
Views: 3175

Re: Budgeting

I use the newer web-based YNAB. I originally used YNAB 4 and loved it. Making the switch was difficult at first but now that I've gotten into the swing of things with the web-based version, I love it. The YNAB Toolkit is a must have in my opinion. The huge advantage of YNAB to me is the whole metho...
by MotoTrojan
Tue Jun 06, 2017 11:45 am
Forum: Investing - Help with Personal Investments
Topic: Moving from Betterment to Vanguard - Need Advise
Replies: 16
Views: 1132

Re: Moving from Betterment to Vanguard - Need Advise

I hold VTI &a VXUS in both taxable and Roth My recommendation is to not use the same funds in Roth and taxable, unless you understand the wash sale rule and either know how to avoid them or regard small washes as a form of entertainment. (Washes that involve two different accounts must be track...
by MotoTrojan
Tue Jun 06, 2017 9:47 am
Forum: Investing - Help with Personal Investments
Topic: Moving from Betterment to Vanguard - Need Advise
Replies: 16
Views: 1132

Re: Moving from Betterment to Vanguard - Need Advise

I'd consider holding both US and International to some extent in your Roth, to allow tax free annual rebalancing. You also should research the foreign tax credit before excluding vxus from your taxable. I hold VTI &a VXUS in both taxable and Roth, just setup a spreadsheet to track your total por...
by MotoTrojan
Tue Jun 06, 2017 12:55 am
Forum: Investing - Help with Personal Investments
Topic: Investment advice for taxable account
Replies: 11
Views: 913

Re: Investment advice for taxable account

What an interesting situation. If they could retire now and this is "spare money" and they don't care specifically what you do with it, I would just treat it like an inheritance and invest it according to my own AA. Keep track of the basis and then when/if they ask for it you can just tel...
by MotoTrojan
Tue Jun 06, 2017 12:17 am
Forum: Personal Finance (Not Investing)
Topic: Budgeting
Replies: 47
Views: 3175

Re: Budgeting

Anybody used both Mint & YNAB? quote] I do. I use mint for bird's eye view surveillance of all my accounts and I use YNAB to sort the funds in my daily spending accounts into budget categories. As I mentioned above, the key to success in budgeting is doing it zero-based. If you spend more money...
by MotoTrojan
Sun Jun 04, 2017 10:40 pm
Forum: Investing - Theory, News & General
Topic: Index construction and "passive" investing
Replies: 8
Views: 775

Re: Index construction and "passive" investing

Even if there was no difference in the construction between the S&P500 and an active managed large-cap fund, the difference is in the fees. Many funds beat the S&P 500 before fees, few if any beat it after.
by MotoTrojan
Sun Jun 04, 2017 6:51 pm
Forum: Personal Finance (Not Investing)
Topic: Budgeting
Replies: 47
Views: 3175

Re: Budgeting

Anybody used both Mint & YNAB? Would love a comparison.

For now, Mint gives me what I need, for free. But I may be interested in a trial of YNAB at some point, to see if it is worth the $50/yr.
by MotoTrojan
Sun Jun 04, 2017 5:43 pm
Forum: Personal Finance (Not Investing)
Topic: Budgeting
Replies: 47
Views: 3175

Re: Budgeting

I used mint.com. Still sort of do but lately have felt it's been a bit buggy. Issue is my wife and I just don't want to write down every single transaction. I think in a perfect world I'd use Excel, but I haven't found an easy way to get transactions and categories into it. I recently setup Mint, a...
by MotoTrojan
Sun Jun 04, 2017 4:44 pm
Forum: Investing - Theory, News & General
Topic: S&P 500 vs TSM for Small cap value tilt
Replies: 40
Views: 2555

Re: S&P 500 vs TSM for Small cap value tilt

This would be a real problem if you thought it was important to be precise about all this. In fact, for me, that's part of the appeal of the "A minimum of X% in SP500 to taste, then add whatever SV funds you like" approach. I don't really want to try to figure out some relationship betwee...
by MotoTrojan
Sun Jun 04, 2017 4:19 pm
Forum: Investing - Theory, News & General
Topic: S&P 500 vs TSM for Small cap value tilt
Replies: 40
Views: 2555

Re: S&P 500 vs TSM for Small cap value tilt

If you are concerned with "strictly short-term & emotional aspect(s)" don't tilt. I am not, just bouncing around rationale for VIOV over VBR. Definitely appreciate all the insight from all of you though, thank you! I would say though that the graph of returns for SP500 vs the tilted i...
by MotoTrojan
Sun Jun 04, 2017 3:40 pm
Forum: Investing - Help with Personal Investments
Topic: Higher salary, but lower employer 401k match...still OK?
Replies: 34
Views: 2143

Re: Higher salary, but lower employer 401k match...still OK?

The math is easy, so I am puzzled by the question. Yes, you are still OK. I hope at-least that the OP is wondering if the reduction in tax-advantaged space is detrimental longterm. OP, assuming you invest that ~$12K/yr (minus taxes of course) gain in a taxable account (or just some of it), you'll d...
by MotoTrojan
Sun Jun 04, 2017 3:38 pm
Forum: Investing - Theory, News & General
Topic: S&P 500 vs TSM for Small cap value tilt
Replies: 40
Views: 2555

Re: S&P 500 vs TSM for Small cap value tilt

A portfolio of VBR/S&P500 with the same SCV factor exposure as a VIOV/S&P500 portfolio, could experience more tracking error from the S&P500/broad-market, without gaining any SCV factor related premium. The regressions are telling you what actually happened over the relevant period in t...
by MotoTrojan
Sun Jun 04, 2017 3:10 pm
Forum: Investing - Theory, News & General
Topic: S&P 500 vs TSM for Small cap value tilt
Replies: 40
Views: 2555

Re: S&P 500 vs TSM for Small cap value tilt

But by needing more VBR/VISVX to match VIOV's small exposure, you are also reducing your exposure to the S&P 500 (and the market majority). A+B=1 If you increase B you must reduce A. Arithmetic not high finance. :wink: The mid-cap question is a whole other story if it exists at all. Yes, my sta...
by MotoTrojan
Sun Jun 04, 2017 1:58 pm
Forum: Investing - Theory, News & General
Topic: S&P 500 vs TSM for Small cap value tilt
Replies: 40
Views: 2555

Re: S&P 500 vs TSM for Small cap value tilt

Doc: I was under the assumption based on other threads I had participated in that the SCV Vanguard fund VISVX was adequate for a SCV tilt. I understand it has a higher push towards mid than other micro fund, but that it wasn't incredibly different than VIOV. You typically need to use more VISVX to ...
by MotoTrojan
Sat Jun 03, 2017 4:50 pm
Forum: Investing - Theory, News & General
Topic: S&P 500 vs TSM for Small cap value tilt
Replies: 40
Views: 2555

Re: S&P 500 vs TSM for Small cap value tilt

Haha, every time I think I have an idea of what I am doing I read some new thought and feel I need to revaluate everything. Looking at the YTD for the growth stocks vs value stocks certainly did not help. I want to be able to have a tilt (no more than 30% SCV index) but put the rest in S&P or T...

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