Search found 4249 matches

by avalpert
Sat Feb 25, 2017 5:44 pm
Forum: Investing - Help with Personal Investments
Topic: Bogleheads' Philosophy a Generalization?
Replies: 35
Views: 1101

Re: Bogleheads' Philosophy a Generalization?

You recognize you can't pick the individual stocks that will perform better but think you have a unique ability to spot the '2%' of fund managers that will outperform? And all those people who make a living hiring those managers, and all those advisors and magazaines that guide people to fund choic...
by avalpert
Sat Feb 25, 2017 4:37 pm
Forum: Personal Consumer Issues
Topic: Weighing up how much to spend on house
Replies: 5
Views: 187

Re: Weighing up how much to spend on house

Where are you getting 2% mortgage quotes from these days - that is remarkably lower than the market rates.
by avalpert
Sat Feb 25, 2017 2:52 pm
Forum: Investing - Help with Personal Investments
Topic: "Simple" question about compounding
Replies: 16
Views: 729

Re: "Simple" question about compounding

We've all heard about the magical and powerful force of compounding. But here's a question that reveals my ignorance: does compounding work if you change from one fund to another? Or does the money need to stay in the same fund to benefit from compounding? Thanks! There is nothing magical about com...
by avalpert
Sat Feb 25, 2017 2:48 pm
Forum: Investing - Help with Personal Investments
Topic: Should we wait before buying in?
Replies: 13
Views: 549

Re: Should we wait before buying in?

Missing the markets best days hurts most more than being in on the worst days. It is also true that missing the markets worst days helps more than being in on the best days. Yep, and being out of the market on the worst and in on the best days is the goal - now if only I could predict those in adva...
by avalpert
Sat Feb 25, 2017 2:48 pm
Forum: Investing - Help with Personal Investments
Topic: Should we wait before buying in?
Replies: 13
Views: 549

Re: Should we wait before buying in?

I am not the kind of investor that reacts to events by selling and "getting out of the market", but now that I'm actually out of the market, it seems like it might be a good idea to stay out for awhile. There is no inherent difference between the two situations - recognize that, don't let...
by avalpert
Sat Feb 25, 2017 12:47 pm
Forum: Investing - Help with Personal Investments
Topic: Mixing Roth 401k and 401k funds
Replies: 4
Views: 123

Re: Mixing Roth 401k and 401k funds

The employer will maintain separate accounts for the Roth and Traditional funds so not a problem. And yes this looks like a good idea - in fact, given your current income you probably would have been better served using a Traditional 401k up until now as well.
by avalpert
Sat Feb 25, 2017 12:40 pm
Forum: Investing - Theory, News & General
Topic: Oscillating withdrawal rate - OWR
Replies: 10
Views: 615

Re: Oscillating withdrawal rate - OWR

This feels like something one would post if one were unaware of 30 years of research on the subject, including years' worth of discussion on this forum every time the subject of retirement withdrawal rates comes up. Cfiresim and i-orp are two of many retirement calculators that support variable wit...
by avalpert
Sat Feb 25, 2017 12:35 pm
Forum: Investing - Theory, News & General
Topic: new study on Investor behavior being disconnected from financial theory and reality
Replies: 49
Views: 2649

Re: new study on Investor behavior being disconnected from financial theory and reality

I will disagree a bit here and say that a preference for dividends is not irrational. Grampa wasn't stupid and I read an article from time to time about amazing nest eggs left behind by those who did what Grampa did. Why connect irrationality and being stupid - smart people are irrational too. That...
by avalpert
Sat Feb 25, 2017 12:16 pm
Forum: Investing - Help with Personal Investments
Topic: Bogleheads' Philosophy a Generalization?
Replies: 35
Views: 1101

Re: Bogleheads' Philosophy a Generalization?

Do I have this correct, the Bogleheads' strategy is to invest in low cost index funds because they perform as well as or outperform 98% (or some near perfect number) of all mutual funds? If so, what about the other 2%? Apparently it's not hard to find funds that have been outperforming indexes and ...
by avalpert
Sat Feb 25, 2017 12:11 pm
Forum: Investing - Help with Personal Investments
Topic: Why not more Consumer Staples in Portfolio?
Replies: 9
Views: 336

Re: Why not more Consumer Staples in Portfolio?

Hi All, Quick question. In doing some research, it seems that the Consumer Staples ETF VDC out performed both the S&P 500 + Total Stock Market Index over a several year time span. Why aren't more people talking about investing in VDC? I'm tempted to tilt my portfolio towards this fund. Would lo...
by avalpert
Sat Feb 25, 2017 12:22 am
Forum: Investing - Help with Personal Investments
Topic: Rebalancing -> Market Crash and rebalancing
Replies: 42
Views: 1729

Re: Rebalancing -> Market Crash and rebalancing

It seems to me that most responses here missed the essence of your question. It's like they have never done bankroll management as part of a poker tournament or anything like that. It is important for you to have some sense of what would reduce your ability to take risk - that isn't limited ot psych...
by avalpert
Fri Feb 24, 2017 6:13 pm
Forum: Personal Finance (Not Investing)
Topic: How much are independent contractors really taxed?
Replies: 27
Views: 1388

Re: How much are independent contractors really taxed?

My main question is: How is it worth being an independent contractor full-time if you have to pay this much tax? The answer is really simple - my hourly rate as an independent contractor is much higher than it was as a W2 employee (even for the same firm). The only difference in taxes is the shift ...
by avalpert
Fri Feb 24, 2017 4:34 pm
Forum: Investing - Theory, News & General
Topic: new study on Investor behavior being disconnected from financial theory and reality
Replies: 49
Views: 2649

Re: new study on Investor behavior being disconnected from financial theory and reality

I want to benefit from my stocks. I don't want to have to sell my stocks. Ditto with my mutual fund shares,if I sell then I perceive that I made a mistake and needed to rectify it. Unless forced by some budget item such as buying a house,even then I would prefer to have been able to hoard dividends...
by avalpert
Fri Feb 24, 2017 4:17 pm
Forum: Investing - Theory, News & General
Topic: new study on Investor behavior being disconnected from financial theory and reality
Replies: 49
Views: 2649

Re: new study on Investor behavior being disconnected from financial theory and reality

It's probably frustrating for financial advisors who want to craft more artful portfolio strategies, but it just seems like common sense to me. Retirees who no longer generate income from labor are looking to generate other income streams. Dividends are idiot-proof, automatic, perpetual, regular, a...
by avalpert
Fri Feb 24, 2017 4:13 pm
Forum: Investing - Theory, News & General
Topic: new study on Investor behavior being disconnected from financial theory and reality
Replies: 49
Views: 2649

Re: new study on Investor behavior being disconnected from financial theory and reality

Were stocks were "marked to market" like property is assessed, and gains were assessed quarterly or annually, then the advantage in 1) would no longer exist. Stocks are marked to market in the most purest sense - they literally have the value of the last market price which is clearly visi...
by avalpert
Fri Feb 24, 2017 4:07 pm
Forum: Investing - Help with Personal Investments
Topic: Stay at home wife 401k question
Replies: 13
Views: 501

Re: Stay at home wife 401k question

Yes, she would be able to contribute all of her 1099 income up to $18,000. We will be doing this for my wife this year although she is more part-time than stay at home. Depending on how much your wife has earned, it may not be worth the hassle. Are you sure? I thought only 25% of the income can - a...
by avalpert
Fri Feb 24, 2017 3:51 pm
Forum: Investing - Help with Personal Investments
Topic: Stay at home wife 401k question
Replies: 13
Views: 501

Re: Stay at home wife 401k question

If she is earning money as a 1099 contractor she is already self-employed. It makes sense for you to open a solo 401k for her because it sounsd as though you are in a high tax bracket and would benefit from being able to defer taxes on her income. However, this is no more time/effort/whatever than a...
by avalpert
Wed Feb 22, 2017 2:47 pm
Forum: Personal Finance (Not Investing)
Topic: Life Changes - What Should My Next Monetary Goals/Objectives Be?
Replies: 17
Views: 1737

Re: Life Changes - What Should My Next Monetary Goals/Objectives Be?

Given your plan to move and your low rate I wouldn't be so quick to pay off the mortgage, better to direct those funds towards investments if you ask me. I also wouldn't rush into a 529 unless you'll get a state tax benefit for it. And for umbrella policy, if you decide you need it don't do it thro...
by avalpert
Wed Feb 22, 2017 10:43 am
Forum: Personal Finance (Not Investing)
Topic: Sofi
Replies: 12
Views: 879

Re: Sofi

Yes, good rates, very good service through the process and a smooth transaction.
by avalpert
Tue Feb 21, 2017 9:38 pm
Forum: Personal Finance (Not Investing)
Topic: Life Changes - What Should My Next Monetary Goals/Objectives Be?
Replies: 17
Views: 1737

Re: Life Changes - What Should My Next Monetary Goals/Objectives Be?

Hey folks, I have been twiddling my thumbs a bit with some upcoming life changes that are in order. Lately I have just been putting my head down and driving forward. And overall it's paid off. But things are about to change, we have child #1 on the way. This is going to raise our expenses (especial...
by avalpert
Tue Feb 21, 2017 9:30 pm
Forum: Personal Finance (Not Investing)
Topic: Real estate vs debt payments
Replies: 17
Views: 1053

Re: Real estate vs debt payments

What is your current savings rate and what other savings do you have? How long ago did you graduate school and start earning that much? How would you be paying for the land? That is a large income for such negative net worth. At this stage, I wouldn't be buying more land until you got your current n...
by avalpert
Tue Feb 21, 2017 9:26 pm
Forum: Investing - Help with Personal Investments
Topic: 403(b) "Fixed Return of 7%" Election Question
Replies: 24
Views: 1300

Re: 403(b) "Fixed Return of 7%" Election Question

I don't know the details of that product so i would look at it closely - who is it backed by (what is the credit risk), how is the guarantee structured (is there any risk of a return adjustment in the future), if it is legislatively structured can it be legislatively changed, etc.? That said, assumi...
by avalpert
Tue Feb 21, 2017 5:46 pm
Forum: Investing - Theory, News & General
Topic: Combining Wellesley and the Larry Portfolio
Replies: 37
Views: 2039

Re: Combining Wellesley and the Larry Portfolio

It kind of seems like there is a thought here that it is automatically negative to combine portfolios.The only overlap here is some treasuries which is a positive for me. I really just do not get it I guess.So what you are saying is a portfolio of small cap value,large cap value,treasuries and some...
by avalpert
Tue Feb 21, 2017 5:39 pm
Forum: Investing - Theory, News & General
Topic: Theory question about value/size tilts
Replies: 7
Views: 394

Re: Theory question about value/size tilts

I would think it is unlikely that they will have the same expected risk/returns/factor exposure. Factor exposure is based on morningstar's boxes and my experience suggests they don't line up. Better off looking at factor exposures of the funds/indexes as opposed to the nine-box numbers.
by avalpert
Tue Feb 21, 2017 5:34 pm
Forum: Investing - Help with Personal Investments
Topic: Do companies match after-tax 401k contributions?
Replies: 32
Views: 1664

Re: Do companies match after-tax 401k contributions?

Why wouldn't you be using the pre-tax or Roth 401k for your first $18,000 anyway? Does your employer match more than $18,000 in contributions?
by avalpert
Tue Feb 21, 2017 3:31 pm
Forum: Investing - Theory, News & General
Topic: Help with standard deviation, volatility comparing slice and dice with 3-fund portfolios
Replies: 9
Views: 362

Re: Help with standard deviation, volatility comparing slice and dice with 3-fund portfolios

Those two portfolios aren't really comparable at all - different stock/bond mixes, different us/int equity, different credit risks (and probably term too), different exposure to small and value on the equity size. That's kind of the point. If you slice and dice you have exposure to riskier asset cl...
by avalpert
Tue Feb 21, 2017 2:06 pm
Forum: Investing - Theory, News & General
Topic: Help with standard deviation, volatility comparing slice and dice with 3-fund portfolios
Replies: 9
Views: 362

Re: Help with standard deviation, volatility comparing slice and dice with 3-fund portfolios

Those two portfolios aren't really comparable at all - different stock/bond mixes, different us/int equity, different credit risks (and probably term too), different exposure to small and value on the equity size.
by avalpert
Tue Feb 21, 2017 1:44 pm
Forum: Investing - Theory, News & General
Topic: Warren Buffett v. Bogleheads
Replies: 39
Views: 3634

Re: Warren Buffet v. Bogleheads

So I guess the solution is to stay the course? :P In all seriousness, many Bogleheads talk about how they love to "up" their buying when the market is down. This seems to be a variation of Buffet's philosophy. I suppose while this is still technically considered market timing, it's an acc...
by avalpert
Tue Feb 21, 2017 1:31 pm
Forum: Investing - Theory, News & General
Topic: Combining Wellesley and the Larry Portfolio
Replies: 37
Views: 2039

Re: Combining Wellesley and the Larry Portfolio

It seems arbitrary and as others have said as likely to dilute the advantages of both as to compliment them. You should build your portfolio based on your particular needs, not randomly split your allocation among other portfolios that sound good on their own (particularly because you happen to have...
by avalpert
Tue Feb 21, 2017 11:17 am
Forum: Investing - Help with Personal Investments
Topic: Tilted in REIT, small cap, health care fund, should I continue or move them into total stock market
Replies: 14
Views: 1324

Re: Tilted in REIT, small cap, health care fund, should I continue or move them into total stock market

Hello Young fellow, There have been many threads on tilting. Please do a search on "tilt" in the search box on the forum page. We need more info to give you a comprehensive feedback. Consider updating your opening post according to the format mentioned in "asking portfolio questions&...
by avalpert
Mon Feb 20, 2017 9:55 pm
Forum: Investing - Theory, News & General
Topic: Why are HSAs called "triple tax advantaged"?
Replies: 45
Views: 2900

Re: Why are HSAs called "triple tax advantaged"?

If it was merely a difference in year in which "the tax" is paid, then you would be paying the same tax in both years. But of course you are not, and there is no singular "tax" justifying the use of the singular article "the". The way I would look at it is you are payi...
by avalpert
Mon Feb 20, 2017 8:44 pm
Forum: Investing - Theory, News & General
Topic: Why are HSAs called "triple tax advantaged"?
Replies: 45
Views: 2900

Re: Why are HSAs called "triple tax advantaged"?

With a Traditional IRA, you will not pay taxes on gains while the money is invested, but all gains -- whether from interest, dividends, capital gains -- will be taxed as ordinary income upon withdrawal. Except, mathematically those two situations are identical so it seems at best misleading to cons...
by avalpert
Mon Feb 20, 2017 7:16 pm
Forum: Investing - Theory, News & General
Topic: Why are HSAs called "triple tax advantaged"?
Replies: 45
Views: 2900

Re: Why are HSAs called "triple tax advantaged"?

With a Traditional IRA, you will not pay taxes on gains while the money is invested, but all gains -- whether from interest, dividends, capital gains -- will be taxed as ordinary income upon withdrawal. Except, mathematically those two situations are identical so it seems at best misleading to cons...
by avalpert
Mon Feb 20, 2017 4:27 pm
Forum: Investing - Theory, News & General
Topic: Why are HSAs called "triple tax advantaged"?
Replies: 45
Views: 2900

Re: Why are HSAs called "triple tax advantaged"?

With both a Roth and Traditional IRA you are taxed on the investment but not the gains (with Roth you are taxed upfront, with Traditional on the back-end) With a Roth IRA, you will not pay taxes on gains while the money's invested, nor will you pay taxes on the gains when they're withdrawn. With a ...
by avalpert
Mon Feb 20, 2017 2:42 pm
Forum: Investing - Theory, News & General
Topic: IRA distributions from Schwab via EFT?
Replies: 7
Views: 410

Re: IRA distributions from Schwab via ETF?

To clarify - you mean EFT (electronic funds transfer) and not ETF (exchange-traded fund), right?
by avalpert
Mon Feb 20, 2017 1:50 pm
Forum: Personal Finance (Not Investing)
Topic: Credit cards vs. Cash
Replies: 123
Views: 6410

Re: Credit cards vs. Cash

- I have tried putting a pile of cash in front of the screen while shopping at Amazon, and it does have an effect on me. Still, I buy more than I should. This goes to an idea that has been floating around my head while diligently reading this entire thread. If part of the benefit of cash is that se...
by avalpert
Mon Feb 20, 2017 1:25 pm
Forum: Investing - Theory, News & General
Topic: Why are HSAs called "triple tax advantaged"?
Replies: 45
Views: 2900

Re: Why are HSAs called "triple tax advantaged"?

It seems to me based on the hoop jumping here that it is called 'triple' advantaged because all good media consultants know that everything is in groups of three. Really, there are two components - is the income that generated the investment taxed and are the gains that result from the investment ta...
by avalpert
Sun Feb 19, 2017 8:56 pm
Forum: Personal Finance (Not Investing)
Topic: part-time W2 vs 1099 income
Replies: 3
Views: 287

Re: part-time W2 vs 1099 income

Though you do need a few more details to get a precise assessment - you are basically looking at deferring taxes on 20% of her income in exchange for an additional 7.65% in self employment taxes on all the income. So basically if your marginal rate is >38% the savings outweigh the costs. This assume...
by avalpert
Sun Feb 19, 2017 12:51 pm
Forum: Investing - Theory, News & General
Topic: I think some criticisim of active management is wrong.
Replies: 22
Views: 1979

Re: I think some criticisim of active management is wrong.

As an example in the thread on American funds a commenter indicated that an international fund outperformed because it used a large share of us funds and the fund was criticised for using the wrong benchmark. I do not want my active manager fishing in poisoned waters . If for example my large cap m...
by avalpert
Sun Feb 19, 2017 12:44 pm
Forum: Investing - Theory, News & General
Topic: economics of landlording
Replies: 46
Views: 4045

Re: economics of landlording

There are other variables you need to consider such as location risk, you have assumed no vacancy, etc. Off the top line numbers it seems like a marginal value as a rental and frankly, if I wasn't planning on acquiring more rental units it doesn't look like it is worth holding.
by avalpert
Sun Feb 19, 2017 12:25 pm
Forum: Investing - Theory, News & General
Topic: What's a good analogy for average returns?
Replies: 45
Views: 2694

Re: What's a good analogy for average returns?

An analogy I've used before to justify a passive investing strategy is driving on the highway with traffic. If you're moving with the flow of traffic but the flow of traffic happens to be moving at 35 miles an hour, it is what it is. However if everyone else is going 65 and you're stuck in the one ...
by avalpert
Sat Feb 18, 2017 1:30 pm
Forum: Personal Finance (Not Investing)
Topic: Tracking progress to $1M portfolio and no mortgage by 40
Replies: 29
Views: 5107

Re: Tracking progress to $1M portfolio and no mortgage by 40

How much of your portfolio growth has been due to new contributions and how much due to value appreciation - I ask because you had fairly steady growth from a dollar perspective the first few years with much larger growth last year. If that growth last year was due to increasing savings then that is...
by avalpert
Sat Feb 18, 2017 12:46 pm
Forum: Personal Finance (Not Investing)
Topic: life insurance vs extended warranties
Replies: 8
Views: 442

Re: life insurance vs extended warranties

The difference is most people can afford the financial loss when their appliance dies while most cannot afford the financial loss of the death of the breadwinner. Sure, your expected return on life insurance is negative - and most people truly hope they lose money on it - but the potential downside ...
by avalpert
Sat Feb 18, 2017 12:43 pm
Forum: Personal Finance (Not Investing)
Topic: Per Trumps Order, IRS Stops Enforcing Individual Mandate (health insurance rquirement)
Replies: 8
Views: 1831

Re: Per Trumps Order, IRS Stops Enforcing Individual Mandate (health insurance rquirement)

Yes, if you choose not to report your insurance coverage situation on your tax return you may get away with not paying $695 just as if you choose not to report the cash you were paid for a side job you may get away with not paying those taxes either - whether the risk of getting caught and the moral...
by avalpert
Fri Feb 17, 2017 10:31 pm
Forum: Personal Finance (Not Investing)
Topic: Life insurance policy on kids - prudent?
Replies: 35
Views: 1962

Re: Life insurance policy on kids - prudent?

pepperz wrote:Would Bogleheads philosophy say part of responsible planning is to take out life insurance policies for each of your children?

No, definitely not part of responsible planning.
by avalpert
Fri Feb 17, 2017 6:08 pm
Forum: Personal Finance (Not Investing)
Topic: Visiting the National Parks
Replies: 27
Views: 1375

Re: Visiting the National Parks

2retire wrote:
The Wizard wrote:You'll have Hawaii and Alaska to deal with, too.

Not to mention, the Virgin Islands.

And American Samoa
by avalpert
Fri Feb 17, 2017 5:56 pm
Forum: Investing - Theory, News & General
Topic: 2016 Relative Tax Efficiency
Replies: 34
Views: 3712

Re: 2016 Relative Tax Efficiency

Updated: iShares foreign funds added: IXUS, SCZ, IEMG, EEMS, EFV ! MSCI EAFE Value looks beautiful. EFV looks less good in higher tax brackets but in general the ishares funds look better than their vanguard counterparts - to the point where it can overcome the er difference even before considering...
by avalpert
Fri Feb 17, 2017 2:55 pm
Forum: Investing - Help with Personal Investments
Topic: Mutual fund vs etf question
Replies: 8
Views: 472

Re: Mutual fund vs etf question

It's a non-sequitur. As a class, ETFs and Mutual Funds perform identically in good markets and bad markets and neither has a performance edge on one another. He is trying to hook in a common argument in passively managed vs actively managed funds (regardless of vehicle) that is just false - activel...
by avalpert
Fri Feb 17, 2017 2:49 pm
Forum: Investing - Help with Personal Investments
Topic: Mutual fund vs etf question
Replies: 8
Views: 472

Re: Mutual fund vs etf question

It's a non-sequitur. As a class, ETFs and Mutual Funds perform identically in good markets and bad markets and neither has a performance edge on one another. He is trying to hook in a common argument in passively managed vs actively managed funds (regardless of vehicle) that is just false - actively...
by avalpert
Fri Feb 17, 2017 2:25 pm
Forum: Personal Finance (Not Investing)
Topic: FSA: leaving job mid-year, can employer come after me for contributions?
Replies: 13
Views: 992

Re: FSA: leaving job mid-year, can employer come after me for contributions?

Not for a medical FSA but I believe you can't get reimbursed before contributing for dependent care and transportation FSAs. If they do (and even if they don't), you should re-pay the funds. No you shouldn't - at least not any more then they should repay you your funds if you don't happen to spend e...

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