Search found 179 matches

by aj76er
Fri Mar 24, 2017 1:46 am
Forum: Investing - Help with Personal Investments
Topic: Jumping back in the market
Replies: 18
Views: 2242

Re: Jumping back in the market

I sold some real-estate back in Sept of last year. I decided to invest 50% immediately and then DCA the rest over a year's time.
by aj76er
Thu Mar 23, 2017 4:32 pm
Forum: Investing - Help with Personal Investments
Topic: Buy on Ex-Div Date or Just Afterwards?
Replies: 7
Views: 540

Re: Buy on Ex-Div Date or Just Afterwards?

This price drop will occur just before the market opens on the ex-dividend date, so buying on the ex-dividend date will accomplish what you want to do. At this point I think it is worth the effort. For instance, if you receive the dividend by buying before the ex-div date and then sell all your sha...
by aj76er
Thu Mar 23, 2017 2:33 pm
Forum: Investing - Help with Personal Investments
Topic: Buy on Ex-Div Date or Just Afterwards?
Replies: 7
Views: 540

Buy on Ex-Div Date or Just Afterwards?

Moving forward in my taxable account, my purchases will be limited to the "Vanguard U.S. Total Stock Market ETF" (ticker: VTI). My plan is to time my contributions to be on (or just after) the ex-dividend date to avoid "paying for the dividend". The size of each quarterly contrib...
by aj76er
Tue Mar 21, 2017 1:01 am
Forum: Investing - Help with Personal Investments
Topic: Moving from Vanguard to Fidelity (probably)
Replies: 51
Views: 4428

Re: Moving from Vanguard to Fidelity (probably)

I consolidated everything to Fidelity earlier this year (from Vanguard). Prior to the transfer, I converted my admiral shares to ETF (no charge, no tax consequences). Only a small fractional share didn't transfer over and resulted in a small deposit in my brokerage account (approx $100). At any rate...
by aj76er
Mon Mar 20, 2017 8:37 pm
Forum: Investing - Help with Personal Investments
Topic: I thought I knew my desired AA
Replies: 76
Views: 3212

Re: I thought I knew my desired AA

When thinking about desired AA during accumulation phase, I'm wondering if the ratio of new contributions (per year) vs. the total portfolio value should be considered? I think you are on to something here. I bet this is what a lot of investors intrinsically "feel" as they get older with ...
by aj76er
Thu Mar 16, 2017 10:34 pm
Forum: Investing - Help with Personal Investments
Topic: I-Bonds for a 30s couple?
Replies: 20
Views: 1967

Re: I-Bonds for a 30s couple?

I think I-bonds could make sense for your situation. All interest earned is tax-deferred, and for qualifying education expenses they are tax-free. So they make a great risk-free savings vehicle for education for your child. After one year, they are liquid so they can also be used as part of your EF....
by aj76er
Thu Mar 16, 2017 6:59 pm
Forum: Personal Finance (Not Investing)
Topic: How Much in Your Emergency Fund And Is It Used?
Replies: 176
Views: 14670

Re: Emergency Funds: YMMV

Being one of the posters who does not bother with a savings account or CD's, the way I look at it is this: Let's say your emergency fund needs to be $100K. Nice round number. I can put that in a CD or savings account and earn something like 1%, probably -2% to -3% real return. Or I can invest it an...
by aj76er
Thu Mar 16, 2017 12:13 am
Forum: Investing - Help with Personal Investments
Topic: Do you avoid international investing like Jack Bogle?
Replies: 151
Views: 7416

Re: Do you avoid international investing like Jack Bogle?

My AA has 30% of equities in international total stock mkt funds. As others have mentioned, a Vanguard paper says that 99% of the diversification benefit can be achieved with 30% international. There are uncompensated risks and higher costs when investing internationally that is important to minimiz...
by aj76er
Wed Mar 15, 2017 11:23 pm
Forum: Personal Consumer Issues
Topic: $464.12 dinner bill last night. No regrets.
Replies: 78
Views: 9519

Re: $464.12 dinner bill last night. No regrets.

Thank you for sharing. A truly inspirational story :).
by aj76er
Mon Mar 13, 2017 10:14 pm
Forum: Investing - Theory, News & General
Topic: Using Ibonds to build cash reserves
Replies: 28
Views: 3249

Re: Using Ibonds to build cash reserves

Faulty argument. If you bought a 20 year Treasury, you'd get the yield to maturity for the entire duration of the issue, 20 years. The I bond currently yields 2.76% for the first six months of purchase, after that, your guess is as good as mine. The point is you don't get the same yield as a 20 yea...
by aj76er
Mon Mar 13, 2017 11:15 am
Forum: Investing - Help with Personal Investments
Topic: Just made my very first ETF Trade - Lessons for Next time?
Replies: 74
Views: 3056

Re: Just made my very first ETF Trade - Lessons for Next time?

I typically try to wait until early afternoon (1-2pm ET), look at the day's trading history, and place a limit order at what I feel is the "average" price of the day (just eyeballing the day's price history). Typically, by early afternoon, all the available information has been priced into...
by aj76er
Thu Mar 09, 2017 12:54 pm
Forum: Personal Consumer Issues
Topic: Securing my securities -- IT best practices?
Replies: 23
Views: 1744

Re: Securing my securities -- IT best practices?

I don't access accounts with my smartphone, except to check credit card balances.

I don't use password mgr, but when I type in a password at a sensitive site (like brokerage), I always type it differently (using mouse clicks to reposition cursor or switch to a dummy text entry field like a terminal).
by aj76er
Mon Mar 06, 2017 5:57 pm
Forum: Investing - Help with Personal Investments
Topic: Poll: For those 20 yrs away from retirement, what is your current asset allocation and future changes?
Replies: 33
Views: 1815

Re: Poll: For those 20 yrs away from retirement, what is your current asset allocation and future changes?

Age 40.

Recently switched to 60/40 (equities/fixed income) and plan to do "age in fixed income" moving forward.
by aj76er
Sun Mar 05, 2017 11:32 pm
Forum: Investing - Help with Personal Investments
Topic: Andrews 3% CD or Total Bond Market?
Replies: 44
Views: 7734

Re: Andrews 3% CD or Total Bond Market?

I start by considering why I would want to own a 5-year Treasury in TBM when I can get a much higher yield on a 5-year CD. Why would I even want to own a 30-year Treasury in TBM when I can get about the same yield now with a 7-year CD at 3%, so about same yield but MUCH less term risk? If you are h...
by aj76er
Sat Mar 04, 2017 7:08 pm
Forum: Investing - Theory, News & General
Topic: Generating Passive income
Replies: 33
Views: 3642

Re: Generating Passive income

I would focus on obtaining Financial Independence as insurance against being unemployable in the future. Passive income is one way to do it -- real estate isn't all that passive in most cases. A diverse portfolio of at least 25x annual expenditures (or 30 to 33x to be really, really safe) will get ...
by aj76er
Sat Mar 04, 2017 4:15 pm
Forum: Personal Finance (Not Investing)
Topic: senior sw engineer pay in boston area.How does mine stack up?
Replies: 16
Views: 2654

Re: senior sw engineer pay in boston area.How does mine stack up?

Seems good.

I'm a senior SW engineer living in Portland, OR and my salary is about 10% lower and RSU+bonus is only 1/3 of yours.
by aj76er
Sat Mar 04, 2017 2:17 am
Forum: Investing - Theory, News & General
Topic: Using Ibonds to build cash reserves
Replies: 28
Views: 3249

Re: Using Ibonds to build cash reserves

Faulty argument. If you bought a 20 year Treasury, you'd get the yield to maturity for the entire duration of the issue, 20 years. The I bond currently yields 2.76% for the first six months of purchase, after that, your guess is as good as mine. The point is you don't get the same yield as a 20 yea...
by aj76er
Fri Mar 03, 2017 1:23 am
Forum: Investing - Help with Personal Investments
Topic: How to determine the assert allocation?
Replies: 8
Views: 840

Re: How to determine the assert allocation?

You could DCA into the market slowly over time (over about 1 yr). Set up an auto-contribution so you don't have to look at it.
by aj76er
Fri Mar 03, 2017 1:11 am
Forum: Investing - Theory, News & General
Topic: Using Ibonds to build cash reserves
Replies: 28
Views: 3249

Re: Using Ibonds to build cash reserves

If you haven't yet read the post by "market timer" in the thread (Treating I-Bonds as Long-term Bond Holdings), then you should do so. Treating I-bonds as cash is fine to do, and I believe most people will treat them this way. However, I believe they have an implied value that is much grea...
by aj76er
Fri Mar 03, 2017 12:42 am
Forum: Investing - Theory, News & General
Topic: Treating I-Bonds as Long-term Bond Holdings
Replies: 19
Views: 2029

Re: Treating I-Bonds as Long-term Bond Holdings

My opinion is that for net worth tracking purposes one should estimate the value of I bonds or EE bonds based on the prevailing yields of traded government bonds. If you do this, you'll see clearly that I bonds and EE bonds can have high duration. Moreover, it will be clear that I bonds and EE bond...
by aj76er
Wed Mar 01, 2017 1:42 am
Forum: Investing - Theory, News & General
Topic: Treating I-Bonds as Long-term Bond Holdings
Replies: 19
Views: 2029

Treating I-Bonds as Long-term Bond Holdings

Most of the discussion I see around I-bonds treat them as cash equivalents and/or emergency funds. I've been treating my I-bonds as long-term holdings with the following qualities: 1. LT bonds with 20-30 yr maturity 2. Extension of tax-deferred space, allowing me to hold fewer nominal bonds in my 40...
by aj76er
Sat Feb 25, 2017 9:55 pm
Forum: Investing - Help with Personal Investments
Topic: What Amount of My Bonds Should Be I Bonds?
Replies: 10
Views: 1224

Re: What Amount of My Bonds Should Be I Bonds?

I would probably put an upper limit of 50% of bond allocation; simply to reduce a potential "tax bomb" later in life, and also to have enough nominal bond funds available for rebalancing with. Since the annual purchase limit for I-Bonds is capped, it naturally should limit the % of AA to s...
by aj76er
Wed Feb 22, 2017 1:14 am
Forum: Investing - Theory, News & General
Topic: For people who think the market is going to crash, where along the continuum are we?
Replies: 117
Views: 10642

Re: For people who think the market is going to crash, where along the continuum are we?

I feel like there is "smarter" money in the market now. That is, many (most?) present day investors have been through 2 big historic crashes over a relatively short amount of time. Thus, it "feels" like there is more caution in the market. But hard to say for sure.
by aj76er
Fri Feb 17, 2017 5:44 pm
Forum: Investing - Help with Personal Investments
Topic: The Cost of Holding Cash
Replies: 11
Views: 2697

Re: The Cost of Holding Cash

Thanks lack_ey. Yes, I suppose I was expecting a bigger drag by holding that much cash; and was surprised to see it doesn't make too much of a difference. Of course, my assumptions could be wrong. A larger equity premium or higher than expected inflation would make cash look worse. Although, inflati...
by aj76er
Fri Feb 17, 2017 4:20 pm
Forum: Investing - Help with Personal Investments
Topic: The Cost of Holding Cash
Replies: 11
Views: 2697

The Cost of Holding Cash

Consider the following portfolios: Portfolio #1 60% Total U.S. Stock Mkt 30% Total U.S. Bond Mkt 10% Cash Portfolio #2 60% Total U.S. Stock Mkt 35% Total U.S. Bond Mkt 5% Cash Let's assume 2% inflation moving forward and the following returns (ignoring taxes): U.S. Stock Mkt = 4% real U.S. Bond Mtk ...
by aj76er
Fri Feb 17, 2017 3:16 pm
Forum: Personal Finance (Not Investing)
Topic: Withdrawing from HSA to pay for medical bills is as simple as they say?
Replies: 13
Views: 815

Re: Withdrawing from HSA to pay for medical bills is as simple as they say?

Yes, this was trivial when I did it.
As a further optimization, you can pay with a rewards credit card (cash-back or travel), and then get re-imbursed from the HSA. This could save you another 1% or 2% :).
by aj76er
Sat Feb 11, 2017 4:17 am
Forum: Investing - Help with Personal Investments
Topic: Investment Portfolio Checking In, Age 35 - part IV
Replies: 11
Views: 1477

Re: Investment Portfolio Checking In, Age 35 - part IV

age-5 in bonds (where you are today) and age-17 (where you plan to be in the future) seems like a big difference in risk profile. Typically, you'd want to take "less" risk as you age.

Overall, I think you're doing great.
by aj76er
Thu Feb 09, 2017 3:48 am
Forum: Investing - Help with Personal Investments
Topic: Why Wouldn't You Want International Stocks?
Replies: 96
Views: 7573

Re: Why Wouldn't You Want International Stocks?

Maybe the best place to hold Int'l then is in Roth accounts that way you don't need to deal with the foreign taxes at all. I hold some Int'l in taxable and am kind of regretting that now with the higher non-qualified dividends. I've thought long and hard about this, as I have intl in taxable too. I...
by aj76er
Wed Feb 08, 2017 1:20 am
Forum: Investing - Help with Personal Investments
Topic: Using DFA small/mid cap value fund in place of completion index?
Replies: 8
Views: 688

Re: Using DFA small/mid cap value fund in place of completion index?

And I actually go one step further ... I have an HSA, Roth, and 401k, and each contains an S&P500 that is treated as one fund spread across 3 accounts. Then the DFFVX is a completion on my combined S&P500 holdings. Since both my HSA and Roth accounts are very small, I can just hold an S&...
by aj76er
Wed Feb 08, 2017 12:47 am
Forum: Investing - Help with Personal Investments
Topic: Using DFA small/mid cap value fund in place of completion index?
Replies: 8
Views: 688

Re: Using DFA small/mid cap value fund in place of completion index?

This is exactly what I do in my 401k. I use an S&P500 + DFFVX as a completion (in 80/20 split) as a way to produce a total market fund with a valuey completion index. I've been very pleased with the results. In taxable, I hold a U.S. Total STock Market (VTI) to avoid any TLH conflicts (and also ...
by aj76er
Tue Feb 07, 2017 4:45 pm
Forum: Investing - Help with Personal Investments
Topic: Why Wouldn't You Want International Stocks?
Replies: 96
Views: 7573

Re: Why Wouldn't You Want International Stocks?

there are only a few free lunches in the investment world: 1. reducing costs 2. increasing diversification 3. minimizing taxes (a subset of #1) Let's analyze in terms of #1, #2, and #3: 1. costs: CON - International costs more (e.g. higher ER). Always has, probably always will. Not by a lot, but typ...
by aj76er
Sun Feb 05, 2017 2:01 pm
Forum: Investing - Help with Personal Investments
Topic: Asset Allocation Feedback ( Ferri, Swedroe, Concepts), Is TILT a 4 letter word?
Replies: 10
Views: 867

Re: Asset Allocation Feedback ( Ferri, Swedroe, Concepts), Is TILT a 4 letter word?

Keep in mind that a tilted portfolio requires more diligence to maintain and rebalance; so if you don't watch things closely, you could miss the benefits, and possibly do worse than a non-tilted. Also, remember that the two biggest things that affect your portfolio are (in order of importance): (1) ...
by aj76er
Fri Feb 03, 2017 2:18 pm
Forum: Investing - Help with Personal Investments
Topic: investing a windfall
Replies: 3
Views: 387

Re: investing a windfall

Keep in mind that some of the funds you mention may not be suitable for a taxable account (e.g. they are not very tax efficient).
by aj76er
Fri Feb 03, 2017 2:18 am
Forum: Investing - Help with Personal Investments
Topic: Need input on rebalancing my Fidelity funds
Replies: 2
Views: 310

Re: Need input on rebalancing my Fidelity funds

In your rebalanced portfolio, it appears you are holding FSBAX twice. Is this a typo? Did you mean FSITX for the 38%? At this percentage, I think FSITX makes sense as your only bond fund. It will provide plenty of "dry powder" for rebalancing in a downturn. I, personally, would avoid overw...
by aj76er
Fri Feb 03, 2017 12:42 am
Forum: Personal Finance (Not Investing)
Topic: Career advice please: early 30's tech employee, new mom, confused
Replies: 36
Views: 3914

Re: Career advice please: early 30's tech employee, new mom, confused

2) Leave my current employer and get a job with less responsibility at a big company (think IBM, Google, Apple) that offers stable employment, excellent health insurance, and generous maternity leave policies. Stay there through my future pregnancy(ies) and work just hard enough not to get fired, w...
by aj76er
Sun Jan 29, 2017 10:31 pm
Forum: Personal Consumer Issues
Topic: Are two in one Washer/Dryer combos a thing?
Replies: 17
Views: 1946

Re: Are two in one Washer/Dryer combos a thing?

I have an LG combo that uses steam dry (no vent drying) because I have a condo with water hookups but no dryer vent. It works great.
by aj76er
Fri Jan 27, 2017 2:50 am
Forum: Investing - Theory, News & General
Topic: Swedroe's guidelines to Bonds
Replies: 113
Views: 8595

Re: Swedroe's guidelines to Bonds

How does everyone else manage this? How does everyone else either stay confident in their decisions or admit they were wrong and change their investments? You should take Taylor's post above to heart; and specifically the following quote: The enemy of a good plan is the dream of a perfect plan. -- ...
by aj76er
Fri Jan 27, 2017 2:32 am
Forum: Investing - Theory, News & General
Topic: Fidelity for Bogleheads?
Replies: 21
Views: 2389

Re: Fidelity for Bogleheads?

veritas wrote:Also was wondering if I should get a Roth IRA despite being non tax-deductible?


Nope. Based on your tax bracket, you want to save taxes now. I would max out 401k and then plan on doing roth conversions later if you find yourself in a lower "marginal" tax bracket.
by aj76er
Fri Jan 27, 2017 2:27 am
Forum: Investing - Theory, News & General
Topic: Fidelity for Bogleheads?
Replies: 21
Views: 2389

Re: Fidelity for Bogleheads?

70% ($350k) in FSTVX — Total [US] Market Index Fund 30% ($150k) in FTIPX — Total International Index Fund Alternatively, you could split up the total international index fund into developed+emerging: 70% ($350k) in FSTVX — Total [US] Market Index Fund 20% ($100k) in FSIVX — Developed International I...
by aj76er
Fri Jan 27, 2017 1:17 am
Forum: Investing - Help with Personal Investments
Topic: Checking In After Five Years
Replies: 12
Views: 2743

Re: Checking In After Five Years

The one thing that has always kept me from doing it is I am led to believe I have to then sign up for the high-deductible medical plan, and at a young age I have had multiple surgeries for injuries due to working out and running. So I feel the safest option that allows me to sleep at night is the l...
by aj76er
Thu Jan 26, 2017 11:48 pm
Forum: Investing - Help with Personal Investments
Topic: Admiral Shares vs ETFs
Replies: 10
Views: 1246

Re: Admiral Shares vs ETFs

If taxes are a concern, take a look at iShares ITOT and IEFA or IXUS. Less capital gains exposure than VG due to not being clones of mutual funds that have redemptions forcing cap gains. If you are long term buy and hold there shouldn't be much difference in fund vs etf, other than tracking error a...
by aj76er
Wed Jan 25, 2017 8:41 pm
Forum: Investing - Theory, News & General
Topic: Swedroe's guidelines to Bonds
Replies: 113
Views: 8595

Re: Swedroe's guidelines to Bonds

Another implementation question: For my 401(k) non-TIPS bond allocation, I'm trying to decide between a CD ladder or the Vanguard short term corporate bond fund (which I know Larry S doesn't fully endorse, but a short end of the spectrum, there does seem to be some benefit). In my 401(k) provider, ...
by aj76er
Wed Jan 25, 2017 5:08 pm
Forum: Investing - Theory, News & General
Topic: Swedroe's guidelines to Bonds
Replies: 113
Views: 8595

Re: Swedroe's guidelines to Bonds

Second, the wider spreads tend to happen not just with bear markets when foreign demand for Treasuries drives yields way down, but also on LONGER CDs, which can go out to 10 years. And that's helpful in building ladders. The spreads at the shorter end tend to be narrower. Hi Larry, It seems the spr...
by aj76er
Wed Jan 25, 2017 4:56 pm
Forum: Investing - Theory, News & General
Topic: Swedroe's guidelines to Bonds
Replies: 113
Views: 8595

Re: Swedroe's guidelines to Bonds

And just for reference, BND has a SEC yield of 2.40%
But of course, there is more risk there. I'm curious, at what yield premium would BND be considered a decent bet? 10bps over FDIC insured CDs seems small.
by aj76er
Wed Jan 25, 2017 4:51 pm
Forum: Investing - Theory, News & General
Topic: Swedroe's guidelines to Bonds
Replies: 113
Views: 8595

Re: Swedroe's guidelines to Bonds

Thank you all. This is some good insight! Kevin, I just checked Fidelity's website, and my numbers agree with yours: 5 yr Treasuries: 2% 5 yr Brokered CDs: 2.30% And yes, a longer maturity direct CD with a favorable EWP and available for an IRA would certainly be a great option :). Unfortunately, ne...
by aj76er
Wed Jan 25, 2017 4:01 pm
Forum: Investing - Theory, News & General
Topic: Swedroe's guidelines to Bonds
Replies: 113
Views: 8595

Re: Swedroe's guidelines to Bonds

Does the book include Larry's recommendations about CDs? Yes, at page 113, he says FDIC insured CDs are worth considering for a portion of fixed income, particularly in tax-deferred or tax-exempt accounts. Thanks for sharing, but "worth considering for a portion of fixed income" isn't nea...
by aj76er
Wed Jan 25, 2017 10:59 am
Forum: Investing - Help with Personal Investments
Topic: % taxable bonds needed for rebalancing taxable equity?
Replies: 26
Views: 1597

Re: % bonds for rebalancing taxable equity rule of thumb?

My rule of thumb is to do rebalancing in tax-advantaged accounts and leave taxable accounts at 100% equity. During the accumulation phase, I have been doing this (~100% equity in taxable, re-balance in tax-advantaged). As I approach retirement, I have been building up some fixed income (mix of muni...
by aj76er
Wed Jan 25, 2017 10:41 am
Forum: Investing - Theory, News & General
Topic: Swedroe's guidelines to Bonds
Replies: 113
Views: 8595

Re: Swedroe's guidelines to Bonds

would also avoid MBS as well as corporates so that excludes Total Bond funds. Larry Theory aside, it is interesting to note that TBM held up quite nicely in the last, historic, MBS-related crisis (e.g. 2008). I'm curious if you feel the extra diversification of TBM is "good enough" for mo...
by aj76er
Tue Jan 24, 2017 3:23 pm
Forum: Investing - Theory, News & General
Topic: Swedroe's guidelines to Bonds
Replies: 113
Views: 8595

Re: Swedroe's guidelines to Bonds

would also avoid MBS as well as corporates so that excludes Total Bond funds. Larry Theory aside, it is interesting to note that TBM held up quite nicely in the last, historic, MBS-related crisis (e.g. 2008). I'm curious if you feel the extra diversification of TBM is "good enough" for mo...

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