Search found 93 matches

by bob_m10
Sat Oct 21, 2017 9:40 am
Forum: Investing - Theory, News & General
Topic: Vanguard's Global Wellesley Income and Global Wellington Funds in registration [now available]
Replies: 90
Views: 15268

Re: Vanguard's Global Wellesley Income and Global Wellington Funds in registration [now available]

The target equity regional allocation for the Vanguard Global Wellington Fund is 57.0% North America, 30.9% Europe, 12.1% Pacific, and 0% Emerging Markets. The target equity allocation for the Vanguard Global Wellesley Income Fund is 45.4% North America, 42.9% Europe, 6.2% Pacific, and 5.5% Emerging...
by bob_m10
Wed Oct 18, 2017 1:00 pm
Forum: Investing - Theory, News & General
Topic: Larry Swedroe:Better To Face The Correction
Replies: 51
Views: 6142

Re: Larry Swedroe:Better To Face The Correction

What does Market timing really mean? Does it mean adjusting your AA slightly or in a big way? What if you are in a TD fund, is that Marketing timing for me to stay to on its internal glide path? Thanks
by bob_m10
Thu Sep 28, 2017 5:31 am
Forum: Investing - Theory, News & General
Topic: Vanguard's Wellesley Income fund is incredible
Replies: 133
Views: 31270

Re: Vanguard's Wellesley Income fund is incredible

I was playing around with Backtest Portfolio and if you pick the default Boglehead Three fund 80/20, it will be hard to find a time frame in the last 30 years where it beats Wellesley. 2009 to current is the only one I found. Must have been a good run for bonds the past 30 years unless I am not usin...
by bob_m10
Wed Sep 27, 2017 7:53 am
Forum: Investing - Theory, News & General
Topic: Vanguard's Wellesley Income fund is incredible
Replies: 133
Views: 31270

Re: Vanguard's Wellesley Income fund is incredible

Interesting post on Wellesley. Curious does the bond allocation of Wellesley hold anything in TIPS? Bob
by bob_m10
Thu Sep 21, 2017 10:20 pm
Forum: Investing - Theory, News & General
Topic: No More Saving???
Replies: 114
Views: 10473

Re: No More Saving???

Say you are a number of years away from retirement and feel you can reach your FI with a more conservative AA. Should you adjust down? I am not in that position but curious if folks that are close to there number put the brakes on.
by bob_m10
Wed Sep 20, 2017 11:41 am
Forum: Investing - Theory, News & General
Topic: Table in BH Guide to investing - Did I miss something?
Replies: 6
Views: 1054

Re: Table in BH Guide to investing - Did I miss something?

As to the title of the chart indicates, those are annualized returns, so yes, per annum. What was maybe less clear is that those nominal returns. I just did a quick run with a data table added to the Simba spreadsheet . Those numbers are indeed correct, except that: 1. the title of the chart refers...
by bob_m10
Wed Sep 20, 2017 6:26 am
Forum: Investing - Theory, News & General
Topic: Table in BH Guide to investing - Did I miss something?
Replies: 6
Views: 1054

Re: Table in BH Guide to investing - Did I miss something?

As to the title of the chart indicates, those are annualized returns, so yes, per annum. What was maybe less clear is that those nominal returns. I just did a quick run with a data table added to the Simba spreadsheet . Those numbers are indeed correct, except that: 1. the title of the chart refers...
by bob_m10
Mon Sep 18, 2017 6:23 pm
Forum: Investing - Theory, News & General
Topic: Larry Swedroe: Vanguard Debunks Dividend Myth
Replies: 112
Views: 11884

Re: Larry Swedroe: Vanguard Debunks Dividend Myth

Bond funds are different, just as bonds are different - it's important not to conflate interest and dividends as is often done. Whether to withdraw or reinvest the interest is simply a matter of your cash needs. The NAV does change when income is distributed - it drops by an equal amount. Can you e...
by bob_m10
Mon Sep 18, 2017 4:44 pm
Forum: Investing - Theory, News & General
Topic: Larry Swedroe: Vanguard Debunks Dividend Myth
Replies: 112
Views: 11884

Re: Larry Swedroe: Vanguard Debunks Dividend Myth

Bond funds are different, just as bonds are different - it's important not to conflate interest and dividends as is often done. Whether to withdraw or reinvest the interest is simply a matter of your cash needs. The NAV does change when income is distributed - it drops by an equal amount. Can you e...
by bob_m10
Mon Sep 18, 2017 4:20 pm
Forum: Investing - Theory, News & General
Topic: Larry Swedroe: Vanguard Debunks Dividend Myth
Replies: 112
Views: 11884

Re: Larry Swedroe: Vanguard Debunks Dividend Myth

Let's say your strategy is current income replacement/boosting rather than future savings, i.e. you want to take increasing dividend payments starting now while building/not removing the principle. How do you handle the non-dividend stocks? That's the mindset we are trying to avoid - taking 'income...
by bob_m10
Thu Sep 14, 2017 6:34 am
Forum: Personal Finance (Not Investing)
Topic: Anyone else freeze their credit score?
Replies: 126
Views: 11351

Re: Anyone else freeze their credit score?

We froze our credit years ago because of identity theft. My wife and I had to do separate freezes with each agency for a total of 6.
by bob_m10
Wed Sep 06, 2017 9:48 pm
Forum: Investing - Help with Personal Investments
Topic: Mutual fund family and picks for 50k
Replies: 26
Views: 2404

Re: Mutual fund family and picks for 50k

bloom2708 wrote: ↑
Wed Sep 06, 2017 3:10 pm
Target 2035 is ~67/33. If this matches your desired allocation, It think it is the only fund you should have in your 401k.
Isn't that ~80/20 for VG 2035?
by bob_m10
Wed Sep 06, 2017 8:29 pm
Forum: Investing - Help with Personal Investments
Topic: Don't know where to start at all
Replies: 21
Views: 1755

Re: Don't know where to start at all

Good evening everybody, as my title says " I don't know how to start my investing path". A little bit about where I am right now, I'm 27 my wife is 28 both of us work as a servers( we don't have any retirement plans in our jobs. No kids maybe in 3 years. We work a lot and our tips are daily cash. W...
by bob_m10
Tue Sep 05, 2017 12:05 am
Forum: Personal Finance (Not Investing)
Topic: Jason Zweig's tax bomb example
Replies: 28
Views: 3692

Re: Jason Zweig's tax bomb example

^A cap gain distribution always lowers the share price, regardless of what types of assets the fund invests in. For dividend distributions, AFAIK all bond ETFs behave like stock ETFs--the price also drops. But the distributions tend to be more frequent (monthly is common), so the tax consequences a...
by bob_m10
Mon Sep 04, 2017 4:01 pm
Forum: Personal Finance (Not Investing)
Topic: Jason Zweig's tax bomb example
Replies: 28
Views: 3692

Re: Jason Zweig's tax bomb example

Big time "buying the dividend". https://investor.vanguard.com/investing/taxes/buying-dividend?lang=en Easiest to just stick to tax efficient index funds. :beer JW This isn't just a buying the dividend though. It is also the risk that a fund with large unrealized capital gains on the books may sell ...
by bob_m10
Mon Sep 04, 2017 8:00 am
Forum: Personal Finance (Not Investing)
Topic: Jason Zweig's tax bomb example
Replies: 28
Views: 3692

Re: Jason Zweig's tax bomb example

No. Some, or most of that 22K was a return of his principle. He bought the shares just before the distribution, and thus received the distribution. However, he gets to pay the tax on that distribution even though he did not participate fully in the gains. The moral of this story is to pay attention...
by bob_m10
Mon Sep 04, 2017 6:34 am
Forum: Personal Finance (Not Investing)
Topic: Jason Zweig's tax bomb example
Replies: 28
Views: 3692

Re: Jason Zweig's tax bomb example

No. Some, or most of that 22K was a return of his principle. He bought the shares just before the distribution, and thus received the distribution. However, he gets to pay the tax on that distribution even though he did not participate fully in the gains. The moral of this story is to pay attention...
by bob_m10
Mon Sep 04, 2017 12:19 am
Forum: Personal Finance (Not Investing)
Topic: Jason Zweig's tax bomb example
Replies: 28
Views: 3692

Jason Zweig's tax bomb example

I was re-reading my Bogleheads Guide to Investing today and came across the section concerning tax bombs that could sneak up on investors. The book referenced a column by Jason Zweig, (link below) where he explains that a new investor (Dr. X) having to pay an unsuspected tax bill of $9K shortly afte...
by bob_m10
Mon Sep 04, 2017 12:02 am
Forum: Investing - Theory, News & General
Topic: Taxable account, all about retirement
Replies: 23
Views: 2781

Re: Taxable account, all about retirement

OP - Putting all your taxable money in cash equivalents with 10 - 15 years until retirement and no identified purchase in mind seems overly conservative to me. Keep in mind that without a mortgage payment you can simply fund a lot of spending out of cash flow. Good point, we will have extra cash fl...
by bob_m10
Sun Sep 03, 2017 10:51 pm
Forum: Investing - Theory, News & General
Topic: Taxable account, all about retirement
Replies: 23
Views: 2781

Re: Taxable account, all about retirement

OP - Putting all your taxable money in cash equivalents with 10 - 15 years until retirement and no identified purchase in mind seems overly conservative to me. Keep in mind that without a mortgage payment you can simply fund a lot of spending out of cash flow. Good point, we will have extra cash fl...
by bob_m10
Sat Sep 02, 2017 7:52 pm
Forum: Investing - Theory, News & General
Topic: Taxable account, all about retirement
Replies: 23
Views: 2781

Re: Taxable account, all about retirement

thanks all for taking the time to post. Very informative.
by bob_m10
Sat Sep 02, 2017 10:42 am
Forum: Investing - Theory, News & General
Topic: Taxable account, all about retirement
Replies: 23
Views: 2781

Taxable account, all about retirement

Hello, My wife and I will be fortunate to pay off our mortgage shortly and been thinking about investing that payment into a taxable account. We view the taxable account as potential pre-retirement spending although nothing specific planned. We are also and thinking it should have a more conservativ...
by bob_m10
Thu Aug 31, 2017 10:13 pm
Forum: Investing - Help with Personal Investments
Topic: Lifestrategy tax question
Replies: 15
Views: 1683

Re: Lifestrategy tax question

A balanced fund in taxable can actually cut in both directions. On the one hand you can't alter stock/bond allocation in taxable and on the other hand you don't have to pay a tax cost for the fund itself to stay balanced to its composition. This confuses me, is it true that you don't have to pay a ...
by bob_m10
Wed Aug 30, 2017 1:21 pm
Forum: Investing - Help with Personal Investments
Topic: VG tax exempt or VG total bond fund for me?
Replies: 10
Views: 904

Re: VG tax exempt or VG total bond fund for me?

My opinion is that at the 28% and below, total bond makes a lot of sense. At the 28% bracket, total bond earns you a touch less after taxes, but it is more diversified than the tax exempt fund so it is worth the small yield hit IMHO. Last time I looked it was only a 7bp (or .07%) delta. How do you ...
by bob_m10
Wed Aug 30, 2017 1:02 pm
Forum: Investing - Theory, News & General
Topic: Cant get my head around this..All Bonds in non-taxable OR...
Replies: 23
Views: 3459

Re: Cant get my head around this..All Bonds in non-taxable OR...

If you are in a higher tax bracket is it ever advisable to spilt your bonds in a taxable account between Intermediate term tax exempt and Total bond as an example? That way everything is not in muni? I know we should look at all accounts as one portfolio but many folks don't like to see any one acc...
by bob_m10
Wed Aug 30, 2017 6:37 am
Forum: Investing - Theory, News & General
Topic: Cant get my head around this..All Bonds in non-taxable OR...
Replies: 23
Views: 3459

Re: Cant get my head around this..All Bonds in non-taxable OR...

If you are in a higher tax bracket is it ever advisable to spilt your bonds in a taxable account between Intermediate term tax exempt and Total bond as an example? That way everything is not in muni? I know we should look at all accounts as one portfolio but many folks don't like to see any one acco...
by bob_m10
Tue Aug 29, 2017 12:01 pm
Forum: Personal Consumer Issues
Topic: Beginner Mountain Bike
Replies: 59
Views: 3192

Re: Beginner Mountain Bike

Unless you're already experienced with bike maintenance, your local bike shop (LBS) is your best bet. If you buy there, the bike often comes with free or discount maintenance. This can end up being cheaper than buying used and paying for a 'tune up' to get the bike in good condition. Bikes at that ...
by bob_m10
Sat Aug 26, 2017 12:15 pm
Forum: Investing - Help with Personal Investments
Topic: Roth conversion (Timing)
Replies: 10
Views: 711

Re: Roth conversion (Timing)

So I am confused on this point, if I convert in Dec 2017 and then roll a 401k over sometime in 2018, will that some how affect my 2017 returns? No, it does not affect 2017 at all. The conversion will be taxed (if it is taxed at all) with your 2017 taxes. But it would mean you could not do the back ...
by bob_m10
Sat Aug 26, 2017 11:08 am
Forum: Investing - Help with Personal Investments
Topic: Roth conversion (Timing)
Replies: 10
Views: 711

Re: Roth conversion (Timing)

If you can convert in December, that keeps all the paperwork in one tax year instead of spreading it out over two tax filings. It also avoids the problem if you roll a 401k into the tIRA the following year. However, if you do that, you should NOT use the back door at all until that tIRA is gone. So...
by bob_m10
Sat Aug 26, 2017 10:15 am
Forum: Investing - Help with Personal Investments
Topic: Opinions on emergency fund/cash options
Replies: 13
Views: 1117

Re: Opinions on emergency fund/cash options

My tier one is hard cash in a secure place. My second tier is invested in Vanguard's Wellesley Income fund. I've been very happy with that arrangement. I have no third tier. Is Wellesley a terrible option for a taxable account? How does Vanguard expect folks a fund like Wellesley? Are they assuming...
by bob_m10
Sat Aug 26, 2017 9:59 am
Forum: Investing - Help with Personal Investments
Topic: Roth conversion (Timing)
Replies: 10
Views: 711

Roth conversion (Timing)

Hi I opened a traditional IRA (Vanguard) this year and will be able to max out the contribution ($6500) by December. This is my only IRA. Because of income this will be a non-deductible IRA. In December I am thinking I can do a Roth conversion. A few questions: 1) Will my tax responsibility only be ...
by bob_m10
Thu Aug 24, 2017 10:20 pm
Forum: Investing - Help with Personal Investments
Topic: Adjusting AA as retirement nears
Replies: 64
Views: 6979

Re: Adjusting AA as retirement nears

It seems like you would always want to be 75+ with equities. If you look at the 3.5% historically, you are almost at 100%. It depends on your time horizon and need to have 100% success rate. I'm willing to let it drop some and with a 50 year horizon it does imply for me 75%+ in equities. If you are...
by bob_m10
Thu Aug 24, 2017 9:21 pm
Forum: Investing - Help with Personal Investments
Topic: Opinions on emergency fund/cash options
Replies: 13
Views: 1117

Re: Opinions on emergency fund/cash options

My tier one is hard cash in a secure place. My second tier is invested in Vanguard's Wellesley Income fund. I've been very happy with that arrangement. I have no third tier. Is Wellesley a terrible option for a taxable account? How does Vanguard expect folks a fund like Wellesley? Are they assuming...
by bob_m10
Thu Aug 24, 2017 8:36 pm
Forum: Investing - Help with Personal Investments
Topic: Adjusting AA as retirement nears
Replies: 64
Views: 6979

Re: Adjusting AA as retirement nears

Hyperborea, He doesn't have a 30/70 so let's look at a 25/75 which is close and for a 30 year retirement a 4% WR has only got an 80% chance (historically) and a 40 year retirement has only a 55% chance (again historically). Am I reading this chart correctly, success is largely correlated to the AA? ...
by bob_m10
Thu Aug 10, 2017 10:31 am
Forum: Investing - Help with Personal Investments
Topic: Where To Put My Emergency Fund?
Replies: 58
Views: 4535

Re: Where To Put My Emergency Fund?

Here's what I do: 1/3 in hard cash (i.e. literal bills that are safe but easily accessible 24/7; can't understand why more Bogleheads don't seem to do this at all) 2/3 in Wellesley Income (this exposes me to a little volatility [historical max has been just under 10% loss in a year] but also helps ...
by bob_m10
Wed Jul 26, 2017 12:17 pm
Forum: Investing - Theory, News & General
Topic: Living Off Dividends
Replies: 285
Views: 22563

Re: Living Off Dividends

There is no advantage. Dividends are a forced taxable event. Other than the downsides of less control over your taxes compared to taking capital gains, and higher tax rates on non-qualified dividends, they have no advantage or disadvantage compared to capital appreciation as an alternative source o...
by bob_m10
Wed Jul 26, 2017 7:00 am
Forum: Investing - Theory, News & General
Topic: Living Off Dividends
Replies: 285
Views: 22563

Re: Living Off Dividends

Hi, I am confused as to the advantage of taking dividends vs reinvesting dividends and selling equities? For example say a person is in retirement and is in the withdrawal phase, why not reinvest the dividends and withdrawal ~4% a year?
by bob_m10
Wed Jun 28, 2017 4:55 pm
Forum: Investing - Theory, News & General
Topic: Life Strategy funds down more that Target Date
Replies: 3
Views: 963

Re: Life Strategy funds down more that Target Date

Hi, Today the market was down but it seems the Life Strategy funds took a disproportionate hit. For example, if you look at the Vanguard LifeStrategy Moderate Growth Fund, it is down -1.42%. This is more than any of the 4 funds which comprise Moderate Growth. The 2020 Target date fund which is made...
by bob_m10
Tue Jun 27, 2017 10:33 pm
Forum: Investing - Theory, News & General
Topic: Life Strategy funds down more that Target Date
Replies: 3
Views: 963

Life Strategy funds down more that Target Date

Hi, Today the market was down but it seems the Life Strategy funds took a disproportionate hit. For example, if you look at the Vanguard LifeStrategy Moderate Growth Fund, it is down -1.42%. This is more than any of the 4 funds which comprise Moderate Growth. The 2020 Target date fund which is made ...
by bob_m10
Thu Jun 15, 2017 5:53 am
Forum: Investing - Help with Personal Investments
Topic: Starting a Three-Fund Portfolio - which funds?
Replies: 27
Views: 4781

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

Target Retirement until you have the minimums saved up to split into the TFP. +1. Really, this is the only thing you can do with $2,000 since all other Vanguard funds have at least a $3,000 minimum. [well, the STAR fund has a $1,000 minimum as well but it's actively managed and has a higher You can...
by bob_m10
Thu Apr 13, 2017 10:44 pm
Forum: Investing - Help with Personal Investments
Topic: New index fund investor
Replies: 24
Views: 2217

Re: New index fund investor

Just starting out here as well. I choose Mike Piper's two books, "Investing" and "Can I retire" before I read "Bogleheads guide to investing." Mr. Piper's books were great. They are short but to the point and filled with clear and easy to understand examples. By reading...
by bob_m10
Mon Apr 10, 2017 8:30 pm
Forum: Investing - Help with Personal Investments
Topic: 401K allocation
Replies: 21
Views: 1503

Re: 401K allocation

thanks all for the input.
by bob_m10
Sun Apr 09, 2017 1:13 pm
Forum: Investing - Help with Personal Investments
Topic: Front-end loads
Replies: 21
Views: 2237

Re: Front-end loads

Is that why we can have American funds in our 401K work plan without load fees? Since these fees would go to our broker and not American? The fees charged on mutual funds from load fund families bought in a 401(k) depends on the agreement between the 401(k) administrator and the employer sponsoring...
by bob_m10
Sun Apr 09, 2017 9:44 am
Forum: Investing - Help with Personal Investments
Topic: 401K allocation
Replies: 21
Views: 1503

Re: 401K allocation

Awesome detail. I think I may go with the following, Just not ready to give up my Active TD fund entirely. 50% American 2025 TD fund. 25% Vanguard 500 Index Adml VFIAX .05% 25% Vanguard Target Retirement Income Inv VTINX .14% thanks bob That looks very reasonable. If the American Funds fund family ...
by bob_m10
Sat Apr 08, 2017 5:53 pm
Forum: Investing - Help with Personal Investments
Topic: Front-end loads
Replies: 21
Views: 2237

Re: Front-end loads

Thank you, FactualFran. So if my math is correct, and if you invested $500,000.00 in a 5.75% front end load fund (whether lump sum or over time), you would pay the fund management at least 28k for the privilege, and that's not even taking into account the ER and other little fees that may exist. Yi...
by bob_m10
Thu Apr 06, 2017 9:03 pm
Forum: Personal Finance (Not Investing)
Topic: How do Taxes work with Mutual funds.
Replies: 38
Views: 2984

Re: How do Taxes work with Mutual funds.

Ok that is a little better than I thought, so going back to my example, if all my income came from a bound fund's dividends, then my first $9,275 would be taxed at 10% and so on up the brackets? do I have that correct? Thanks No, you forgot about exemptions and deductions, so your first income woul...
by bob_m10
Thu Apr 06, 2017 9:54 am
Forum: Personal Finance (Not Investing)
Topic: How do Taxes work with Mutual funds.
Replies: 38
Views: 2984

Re: How do Taxes work with Mutual funds.

Ok that is a little better than I thought, so going back to my example, if all my income came from a bound fund's dividends, then my first $9,275 would be taxed at 10% and so on up the brackets? do I have that correct? Thanks No, you forgot about exemptions and deductions, so your first income woul...
by bob_m10
Thu Apr 06, 2017 8:25 am
Forum: Personal Finance (Not Investing)
Topic: How do Taxes work with Mutual funds.
Replies: 38
Views: 2984

Re: How do Taxes work with Mutual funds.

When we use the term "ordinary income" from an investment, it means it goes on line 9a or line 8a of Form 1040 and flows to the bottom where AGI is and over to page 2 where taxable income is. It does not go on Line 8b nor line 9b nor line 13 which is investment income that is taxed differ...
by bob_m10
Thu Apr 06, 2017 7:49 am
Forum: Personal Finance (Not Investing)
Topic: How do Taxes work with Mutual funds.
Replies: 38
Views: 2984

Re: How do Taxes work with Mutual funds.

Dividends from bond interest is not qualified. So that means they will be taxed at the marginal rate and thus less tax efficient to a stock fund which has the potential of qualified funds? Do I have that correct? thanks Yes. Bond interest is taxed as ordinary income unless it is from municipal bond...
by bob_m10
Mon Apr 03, 2017 6:23 pm
Forum: Personal Finance (Not Investing)
Topic: Yahoo finance's interactive chart not matching VG comparison tool
Replies: 8
Views: 389

Re: Yahoo finance's interactive chart not matching VG comparison tool

I see what you mean, the "1-Day Return as of 31 Mar 2017". I thought that meant it was comparing today's closing price with the one from last Friday. I see that it just has not been updated yet. I found some further information on the Yahoo interactive chart vs the others. It seems you wer...