Search found 637 matches

by dharrythomas
Sun Feb 07, 2016 3:19 pm
Forum: Investing - Theory, News & General
Topic: Hold International Funds in Roth IRA or Taxable Account?
Replies: 12
Views: 802

Re: Hold International Funds in Roth IRA or Taxable Account?

For what it is worth, I have some international in taxable, some in Traditional IRA/TSP and some in Roth IRA/TSP. I didn't do detailed calculations, I just spread stuff around.

Harry
by dharrythomas
Sun Feb 07, 2016 3:12 pm
Forum: Investing - Theory, News & General
Topic: Vacation Homes
Replies: 37
Views: 3708

Re: Vacation Homes

TC101, It may not be an awful decision all things considered. I know several people that love their second homes and even people that like their timeshares. From a financial perspective, you are 100% correct. A 2d home is an awful investment. Your first home is anawful "investment", but yo...
by dharrythomas
Sun Jan 31, 2016 3:28 pm
Forum: Investing - Help with Personal Investments
Topic: VG International Bond Index Fund?
Replies: 11
Views: 817

Re: VG International Bond Index Fund?

My perception is that any diversification benefit is swallowed up by the hedging costs in fixed income.

It doesn't concern me enough to avoid Target Retirement and LifeStrategy Funds. But if you're doing it yourself, why bother?

Good Luck.

Harry
by dharrythomas
Sat Jan 30, 2016 6:37 pm
Forum: Investing - Help with Personal Investments
Topic: Life Strategy Growth VASGX & Target Retirement 2035 VTTHX for IRA's
Replies: 11
Views: 1705

Re: Vanguard Lifestrategy vs Target Fund

I use both types, but unlike the conventional wisdom here, I sometimes think of them as separate portfolios or buckets. Where possible (it is not possible to segregate in the TSP), I use Target Date funds for our traditional accounts and LifeStrategy or other balanced fixed allocation funds in our R...
by dharrythomas
Fri Jan 29, 2016 5:28 pm
Forum: Investing - Theory, News & General
Topic: "Why Simple Is Still a Hard Sell"
Replies: 24
Views: 4546

Re: "Why Simple Is Still a Hard Sell"

Taylor, Thanks. I play around at the margins (mostly REITs and Value ) but honestly think I'd have been better off not to. I know that Wellington did better that I did in my Roth, I'm not sure about LifeStrategy Moderate Growth. At least we've got our traditional accounts locked into Target Date Fun...
by dharrythomas
Fri Jan 29, 2016 5:05 pm
Forum: Investing - Theory, News & General
Topic: Why doesn't Vanguard stay the course?
Replies: 44
Views: 5634

Re: Why doesn't Vanguard stay the course?

Sawhorse, The S&P 500 is not necessarily the 500 largest companies in the US. The S&P 500 is a set of large companies selected by Committee. They are supposed to be representative of the economy and market. It has been generally representative of the market but the changes in the makeup of t...
by dharrythomas
Fri Jan 22, 2016 8:04 pm
Forum: Investing - Help with Personal Investments
Topic: who is buying or selling ??
Replies: 27
Views: 2007

Re: who is buying or selling ??

I funded Roth IRAs this week, because I got our annual statements with the investment stubs last week. Putting money in the Roth TSP every 2 weeks, and small contributions into Total World Stock Index in taxable twice a month. I guess we're always buying. A wise man said, "Stay the course!"
by dharrythomas
Sun Dec 27, 2015 2:26 pm
Forum: Investing - Help with Personal Investments
Topic: Taxation & RMDs in kind, individual secondary bonds
Replies: 11
Views: 706

Re: Taxation & RMDs in kind, individual secondary bonds

(Note: I'm neither a CPA nor a tax lawyer nor do I have personal experience with this issue) Don't overthink this. Other than the date of interest payments, for tax purposes, it should not make any difference what bonds you pick or their purchase price. The organization holding your IRA should distr...
by dharrythomas
Fri Dec 25, 2015 9:30 pm
Forum: Investing - Help with Personal Investments
Topic: Seeking reassurance about Life-only pension choice
Replies: 16
Views: 1646

Re: Seeking reassurance about Life-only pension choice

There are enough things outside my control that I'd always take the survivor option. I've done it once and will do it again when I retire again. I say that even though we've got enough that we've canceled our life insurance policies.

Good luck whatever you decide.
by dharrythomas
Fri Dec 25, 2015 3:13 pm
Forum: Investing - Theory, News & General
Topic: Experts that DON'T believe in value stocks
Replies: 10
Views: 1511

Re: Experts that DON'T believe in value stocks

I tilt value. Not as much as some. I believe that over the long term it will pay off. I don't know if my investing lifetime will be long enough to count as "the long term". :?: On the other hand, Jack Bogle thinks it's a matter of the time period you're measuring. You pay your money and ta...
by dharrythomas
Thu Dec 24, 2015 1:29 pm
Forum: Investing - Help with Personal Investments
Topic: Roth vs Trad TSP w/ anticipated pension
Replies: 20
Views: 1329

Re: Roth vs Trad TSP w/ anticipated pension

In a similar situation, I split the difference, 5% Traditional TSP and 13% Roth TSP. The 10% going into Traditional allows us a little more cash flow and a little more money that is forced into the checking account each year. This may be a big deal if I predecease DW as the pension amounts will be 5...
by dharrythomas
Sun Dec 20, 2015 9:42 pm
Forum: Investing - Theory, News & General
Topic: ETF or Fund - Which Do You Use?
Replies: 40
Views: 2910

Re: ETF or Fund - Which Do You Use?

Funds only. I don't need any more temptation to over trade my account.
by dharrythomas
Sun Dec 13, 2015 10:01 pm
Forum: Investing - Theory, News & General
Topic: Should I follow Jack Bogle in "I don't do International"
Replies: 90
Views: 7390

Re: Should I follow Jack Bogle in "I don't do International"

I own some international.

Who is right is (a) time period dependent, and (2) unknowable in advance.

Good luck.
by dharrythomas
Sat Dec 12, 2015 8:44 am
Forum: Investing - Theory, News & General
Topic: Currency hedging in international equity funds?
Replies: 15
Views: 1074

Re: Currency hedging in international equity funds?

Tweedy-Browne has both hedged and non-hedged international equity. We don't own either. The only currency hedged fund we own is Vanguard International Bond in LifeStrategy and Target Retirement funds. Bogle and others have done studies that show that over time, world stock markets have similar retur...
by dharrythomas
Fri Dec 11, 2015 9:17 pm
Forum: Personal Finance (Not Investing)
Topic: New Military Retirement System
Replies: 80
Views: 6981

Re: New Military Retirement System

We're leaving out an important point here and as someone who retired in 2014 as a Colonel from the Army Reserves, I was in the privileged class. A private company could never get away with the old system. The bulk of the benefits flow to a highly paid minority of plan participants. The documents fro...
by dharrythomas
Wed Dec 09, 2015 12:04 am
Forum: Investing - Help with Personal Investments
Topic: Pay-off Car Loan or Pay-down Mortgage?
Replies: 16
Views: 1388

Re: Pay-off Car Loan or Pay-down Mortgage?

I'd use the Dave Ramsey "debt snowball" approach. Pay off the car loan, then move the car and payment and the additional payment to the house at least until you can the pay off date on the house before you switch careers. Not having any payments when you transition will lower your stress c...
by dharrythomas
Sat Dec 05, 2015 8:20 am
Forum: Investing - Help with Personal Investments
Topic: I am 34 and have only 3000 bucks to invest...This is a job for...THE BOGLEHEADS
Replies: 49
Views: 3564

Re: I am 34 and have only 3000 bucks to invest...This is a job for...THE BOGLEHEADS

You can only start where you are. Start a Roth IRA at Vanguard with your investment money. Use either a LifeStrategy, Target Retirement, or the STAR fund. Set up auto-investment for twice a month, increase as your salary increases. Read the suggested books. Pay off a mortgage before retirement. You ...
by dharrythomas
Sat Nov 07, 2015 1:09 pm
Forum: Investing - Theory, News & General
Topic: Warren Buffett`s will to his wife
Replies: 13
Views: 2258

Re: Warren Buffett`s will to his wife

I don't have much faith in my ability to control people while I'm alive. I expect my influence to decrease after my death. Since Buffett's first wife left money to her boyfriend, I don't expect him to have more control over #2. I've explained it to her, but I expect her to do what she wants when I'm...
by dharrythomas
Tue Nov 03, 2015 9:12 pm
Forum: Personal Finance (Not Investing)
Topic: Dilemma Regarding Mortgage
Replies: 20
Views: 2460

Re: Dilemma Regarding Mortgage

I don't like adjustable rate loans, the bank is in a better position to take the interest rate risk than even someone with your income. I'd sign up for a fixed rate and pay off early (have done it twice). But clearly, I don't belong in this discussion because I can't imagine spending a million dolla...
by dharrythomas
Tue Nov 03, 2015 8:58 pm
Forum: Investing - Theory, News & General
Topic: Anyone hold Vanguard Energy Fund in Asset Allocation ?
Replies: 12
Views: 1506

Re: Anyone hold Vanguard Energy Fund in Asset Allocation ?

I own a little in my Roth. I've also got some SCV, PME, MCV, LCV, EM, and both REIT, and Int. RE along with LSMG. I started an account for my wife at the same time which I put in Wellington and didn't touch for a decade. She is far ahead. I hold it, I haven't done well, and I don't recommend it to o...
by dharrythomas
Tue Nov 03, 2015 8:45 pm
Forum: Investing - Theory, News & General
Topic: TSP Changes Announced, kinda sorta
Replies: 10
Views: 1435

Re: TSP Changes Announced, kinda sorta

More I is fine, but less S, moving away from the Market and not towards it is not good. Less F and more G isn't great either. The L funds were already heavily weighted towards G. I've also got issues with glide path and terminal allocation of the L Funds. I'd like to see TSM and Total International ...
by dharrythomas
Sun Nov 01, 2015 8:40 pm
Forum: Personal Finance (Not Investing)
Topic: Did I make right choice on Pension vs. Lump sum
Replies: 36
Views: 3417

Re: Did I make right choice on Pension vs. Lump sum

IMO people are naturally attracted to a bird in the hand and are overly worried about on losing out (by dying early) instead of properly viewing the pension as longevity protection. This echoes the logic of people taking SS at 62 when they would almost always be better off in delaying their benefit...
by dharrythomas
Sun Nov 01, 2015 3:04 pm
Forum: Investing - Theory, News & General
Topic: Vanguard sued for [failing to charge market rates to and then paying taxes on services to its mutual funds]
Replies: 776
Views: 108200

Re: Vanguard sued for [failing to charge market rates to and then paying taxes on services to its mutual funds]

It's hard for me to see it has tax avoidance, since (outside of the Roth or a charitable whatever) everything Vanguard doesn't charge is extra income that some intity reports on a tax form. That said I'm not a lawyer and and the law doesn't always make sense. We were once required to post a bond on ...
by dharrythomas
Fri Oct 30, 2015 9:58 pm
Forum: Personal Finance (Not Investing)
Topic: Did I make right choice on Pension vs. Lump sum
Replies: 36
Views: 3417

Re: Did I make right choice on Pension vs. Lump sum

On the other hand, once you've made a decision, there is no point in worrying about it. As was said above, most of the time either option will work out OK.
by dharrythomas
Fri Oct 30, 2015 9:56 pm
Forum: Personal Finance (Not Investing)
Topic: Did I make right choice on Pension vs. Lump sum
Replies: 36
Views: 3417

Re: Did I make right choice on Pension vs. Lump sum

I had to make the decision in my mid-40s on a deferred pension, not provide any coverage for spouse, cover her immediately upon my death, defer the decision to 60, with no coverage for her if I die in the interim. Different costs for each. I bought the max coverage for my spouse, immediately upon my...
by dharrythomas
Fri Oct 30, 2015 9:43 pm
Forum: Investing - Help with Personal Investments
Topic: Roth Recommendation
Replies: 4
Views: 534

Re: Roth Recommendation

Opening up a Roth is a fine idea. I'd use one of the LifeStrategy Funds for the broadest diversification. Good luck.
by dharrythomas
Fri Oct 30, 2015 9:37 pm
Forum: Investing - Help with Personal Investments
Topic: Helping Dad with small inheritance and his small business
Replies: 13
Views: 1160

Re: Helping Dad with small inheritance and his small business

My two thoughts are
1) Unless your father doesn't commit to live below his means and save and invest in something, what he does with $30K won't make a difference.
2) I don't know of anyone who runs a medical practice without a receptionist and nurse.
by dharrythomas
Fri Oct 30, 2015 8:19 pm
Forum: Investing - Help with Personal Investments
Topic: New Military Boglehead- Portolio Review
Replies: 8
Views: 723

Re: New Military Boglehead- Portolio Review

Welcome You are in great shape, relax and understand how blessed you are. 1). For a GS employee the match should be 5% in the TSP. It is slightly confusing because it may be listed as TSP-Matching and TSP-Basic. Basic is an automatic match. 2). Consider setting aside 10% of your Military pay in the ...
by dharrythomas
Sun Sep 13, 2015 2:08 pm
Forum: Investing - Theory, News & General
Topic: When Do People Actually Claim Social Security?
Replies: 105
Views: 6995

Re: When Do People Actually Claim Social Security?

In general, those numbers are accurate. In the real world, "nobody" waits until 70 to draw SS and "nobody" maxes out their retirement accounts. People draw SS at 62 because it's available, people draw SS at 65 because they need to apply for Medicare. Those that are still working ...
by dharrythomas
Mon Sep 07, 2015 4:10 pm
Forum: Investing - Theory, News & General
Topic: TSP Withdrawal Strategies - Fedsmith Article
Replies: 25
Views: 3514

Re: TSP Withdrawal Strategies - Fedsmith Article

I may have misunderstood some of these rules. I had some tax free contributions in my TSP. I was able to isolate these by rolling my military TSP into my civilian account. The civilian TSP will not take the tax free contributions. I then rolled the remainder of my military TSP into my Roth IRA for o...
by dharrythomas
Mon Sep 07, 2015 3:46 pm
Forum: Investing - Help with Personal Investments
Topic: ivest fund documents...
Replies: 2
Views: 246

Re: ivest fund documents...

1) You should have a CSPID #, you can track. 2) you can search for unclaimed property in the state where it was registered. 3) I think Ivest was one of the funds that Bogle used to start Vanguard, it may have been merged into another Vanguard Fund. Good luck, I found some old (and worthless) stock c...
by dharrythomas
Fri Aug 28, 2015 8:00 am
Forum: Investing - Theory, News & General
Topic: Why no diversification benefit for international in this week's crash?
Replies: 90
Views: 8506

Re: Why no diversification benefit for international in this week's crash?

I don't even have time to start a list of the things I don't have a clue about, let alone the things that I have a concept of but really don't understand the whys and wherefores of. A much shorter list would be the things I really understand.

Harry
by dharrythomas
Sun Aug 09, 2015 3:23 pm
Forum: Investing - Help with Personal Investments
Topic: First Request for Advice, 25 y/o Military Officer
Replies: 23
Views: 2042

Re: First Request for Advice, 25 y/o Military Officer

1) I'd stick with the LifeCycle fund. Let the professionals do the rebalancing for you at no extra cost. The funds are pretty conservative, so you may want a later date than with a Vanguard Target Retirement Fund. 2) I'd stick with the Roth TSP. I put all of my Reserve Component TSP in the Roth as s...
by dharrythomas
Sat Jul 18, 2015 9:25 pm
Forum: Investing - Theory, News & General
Topic: Pros and cons of adding Roth Option to 401K Plan
Replies: 103
Views: 6594

Re: Pros and cons of adding Roth Option to 401K Plan

Check the statistics, if you're thinking about the employees--an insignificant number of people use the Roth option. The usage rates don't justify the paperwork for most small businesses. Check your plan, I worked for a small business and while we had teenagers in the house and a house payment, I wa...
by dharrythomas
Sun Jul 12, 2015 1:03 pm
Forum: Investing - Theory, News & General
Topic: Mullainathan: Why Investing Is So Complicated
Replies: 30
Views: 2576

Re: Mullainathan: Why Investing Is So Complicated

I think there are two issues: 1) the number of options overwhelm our ability to distinguish what's important. (See the book "Blink"). Partially by the complications of the system and partially by design by sales and marketing departments. 2) the system is fed either by the amount of money ...
by dharrythomas
Thu Jul 02, 2015 7:50 pm
Forum: Investing - Theory, News & General
Topic: How did you start?
Replies: 35
Views: 3814

Re: How did you start?

I got started right after I graduated from college and went into the Army, putting money into an IRA with a bank. When I was at the Advanced Course, about 3 years in, we started investing with USAA (they'd open an account for $100 plus an automatic investment and we didn't have a cushion for the $1,...
by dharrythomas
Wed Jun 24, 2015 4:10 pm
Forum: Personal Finance (Not Investing)
Topic: investing vs. mortgage payoff
Replies: 10
Views: 1972

Re: investing vs. mortgage payoff

We have never regretted going debt free. Good Luck
by dharrythomas
Fri Jun 12, 2015 5:30 pm
Forum: Investing - Theory, News & General
Topic: Vanguard Target Funds
Replies: 32
Views: 4637

Re: Vanguard Target Funds

Taylor,

Thanks. While there are a few paths that will give you a better result than Target Retirement or LifeStrategy, there are far more that will leave you worse off. We use both series in tax-deferred accounts. One in Traditional and the other in Roth.

Harry
by dharrythomas
Sun Jun 07, 2015 7:57 am
Forum: Investing - Theory, News & General
Topic: Fidelity study identifies the most successful investors!
Replies: 34
Views: 5261

Re: Fidelity study identifies the most successful investors!

This isn't just an issue of all stock or not rebalancing. There is real benefit in being diversified and then "just don't do anything!" This, I think, is the real benefit to balanced funds and simplicity. When I go in to rebalance, I'm awfully tempted to tweak it just a little bit. But I k...
by dharrythomas
Sun May 31, 2015 2:14 pm
Forum: Investing - Theory, News & General
Topic: Bogleheads and international bonds
Replies: 13
Views: 1730

Re: Bogleheads and international bonds

I'm not big on international bonds, but I guess the concept makes sense and I'm willing to have them in our LifeStrategy and Target Retirement funds. Since the Vanguard fund is hedged, our currency risk is still focused on the equity side. We get some additional diversification at a slightly higher ...
by dharrythomas
Sun May 24, 2015 1:41 pm
Forum: Investing - Theory, News & General
Topic: Stemikger "Volatility is far from synonymous with risk."
Replies: 152
Views: 11051

Re: Stemikger "Volatility is far from synonymous with risk."

The reason that volatility is used to measure risk is because it is convienent to find and easy to quantify. For professors to build a model or quants to build an MVO, requires a definition of risk that is quantifiable. If you move to a behavoirial model, it works because volatility increases the li...
by dharrythomas
Tue May 19, 2015 7:54 pm
Forum: Investing - Help with Personal Investments
Topic: Joint or individual taxable accounts?
Replies: 1
Views: 302

Re: Joint or individual taxable accounts?

We've had some of both. While there are differences in tax treatment on death, I think it is mostly a personal preference. We bought some startup banks, one is held jointly and one we each own some stock separately. I will hold some of my inheritance separately because I feel like my parents and gra...
by dharrythomas
Sat May 16, 2015 5:36 pm
Forum: Investing - Help with Personal Investments
Topic: Post tax investing or Pay off 2.95% Mortgage?
Replies: 39
Views: 4308

Re: Post tax investing or Pay off 2.95% Mortgage?

Leverage always adds risk. The fact is that for the nation as a whole, all the risk tends to show up at the same time. People lose their job at the same time the market crashes. I choose to take my risk in the asset allocation. I also enjoy the extra cash flow and flexibility of not having the payme...
by dharrythomas
Sat May 16, 2015 5:19 pm
Forum: Investing - Help with Personal Investments
Topic: Vanguard Roth IRA
Replies: 7
Views: 1033

Re: Vanguard Roth IRA

I'd recommend that you start with either a LifeStrategy or Target Retirement fund. They'll provide you with broad diversification. Later when you have enough invested to own individual funds, you can do that if you want. Otherwise, a LifeStrategy or Target Retirement fund would be fine to own as a o...
by dharrythomas
Sat May 16, 2015 10:21 am
Forum: Investing - Help with Personal Investments
Topic: How bad is Wellesley for taxable?
Replies: 37
Views: 3212

Re: How bad is Wellesley for taxable?

dbr just demonstrated a much deeper understanding of the mathematical concepts than I have. Thanks.
by dharrythomas
Sat May 16, 2015 10:14 am
Forum: Investing - Help with Personal Investments
Topic: Total World Stock Index
Replies: 54
Views: 6336

Re: Total World Stock Index

It's what we own in our taxable account. It's a great fund and has delivered as advertised.
by dharrythomas
Sat May 16, 2015 9:53 am
Forum: Investing - Help with Personal Investments
Topic: How bad is Wellesley for taxable?
Replies: 37
Views: 3212

Re: How bad is Wellesley for taxable?

Retiredjg, You're right that the tax drag doesn't compound, but it's a useful framework to address the impact. The drag does decrease the compound growth of your principal, therefore it has a compound impact over time. After tax drag, your investment in year two is less and your return is off of a l...
by dharrythomas
Sat May 09, 2015 9:46 am
Forum: Investing - Theory, News & General
Topic: Help me understand why maxing out Roth TSP is better than Traditional
Replies: 23
Views: 1765

Re: Help me understand why maxing out Roth TSP is better than Traditional

Anything you do with the TSP hits both sides of the account except the partial withdrawal AND you only get one. The other option is to roll the entire account over to an IRA.
by dharrythomas
Sat May 09, 2015 9:34 am
Forum: Investing - Theory, News & General
Topic: Help me understand why maxing out Roth TSP is better than Traditional
Replies: 23
Views: 1765

Re: Help me understand why maxing out Roth TSP is better than Traditional

After retirement you can use your one time partial withdrawal to move only your Roth contributions to an IRA. Then set up your TSP withdrawal strategy with only the traditional balance. While rather inflexible, the TSP does give you one out to access your Roth funds and keep the traditional in the T...
by dharrythomas
Sat May 09, 2015 9:23 am
Forum: Investing - Theory, News & General
Topic: Round Numbers in Portfolio Allocations
Replies: 49
Views: 3394

Re: Round Numbers in Portfolio Allocations

It makes a difference. The problem is that at the margin, the difference between 3 and 5% is insignificant. At 2% of your portfolio, even if you assume a 50% additional or less less return on that 2%, it changes the total portfolio return by 1%. In the real world, your difference would be ~0.1 to 0....

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