Search found 2137 matches

by jalbert
Tue Oct 17, 2017 12:12 pm
Forum: Investing - Theory, News & General
Topic: Wade Pfau’s new book: How Much Can I Spend in Retirement?
Replies: 16
Views: 3264

Re: Wade Pfau’s new book: How Much Can I Spend in Retirement?

Bengen assumed that all withdrawals would come from tax-deferred accounts when using his calculations). That made it convenient as it did not require simulating the tax drag of dividend distributions. But I’m not convinced that Bengen’s choice led to any loss of generality. If you include tax liabi...
by jalbert
Tue Oct 17, 2017 11:47 am
Forum: Investing - Theory, News & General
Topic: Currency risk?
Replies: 23
Views: 968

Re: Currency risk?

I just don't see any evidence that currency risk is a one way street. If your liabilities (living expenses) are normally denominated in your home currency, then currency changes in your assets and liabilities move up or down in lockstep when assets are also denominated in home currency. Currency ri...
by jalbert
Tue Oct 17, 2017 12:14 am
Forum: Personal Consumer Issues
Topic: Data Security on Cellular Network
Replies: 4
Views: 386

Re: Data Security on Cellular Network

The main issue is that a smartphone is not a very secure platform, often made even worse by not following good practices (installing apps that may not be trustworthy and not running antivirus software being examples). You may make an SSL connection from your browser to a web site (also called https ...
by jalbert
Mon Oct 16, 2017 7:05 pm
Forum: Investing - Help with Personal Investments
Topic: Please Criticize my Funds.
Replies: 27
Views: 2109

Re: Please Criticize my Funds.

The major advantage of a target retirement fund is that it can be a single fund all-in-one portfolio, which requires no attention or management by the investor. You never have to rebalance and don't have to monitor your investment. I think the major advantage is that portion of the portfolio is man...
by jalbert
Mon Oct 16, 2017 12:42 pm
Forum: Investing - Theory, News & General
Topic: Which would you rather own: AAPL or S&P 600 Small Cap Index?
Replies: 57
Views: 3013

Re: Which would you rather own: AAPL or S&P 600 Small Cap Index?

Then someone asks, what about the the very top heavy markets, like Denmark, South Korea or Spain, where the top one, two or three index constituents make up sixty or seventy percent of the index? Someone replied to me and said that market cap weighting is still the most diversified way to invest in...
by jalbert
Sun Oct 15, 2017 6:28 pm
Forum: Investing - Help with Personal Investments
Topic: HSA investment [use guaranteed 4% or use equities]
Replies: 22
Views: 1328

Re: HSA investment [use guaranteed 4% or use equities]

I disagree. Roth accounts and HSAs should be filled with equities, with bonds being in tax-deferred or taxable (with municipals). Due to the tax-free growth and tax-free withdrawals (without RMDs), we want those accounts to be the largest. Only if you have filled your tax-deferred and taxable space...
by jalbert
Sat Oct 14, 2017 7:05 pm
Forum: Investing - Theory, News & General
Topic: Which would you rather own: AAPL or S&P 600 Small Cap Index?
Replies: 57
Views: 3013

Re: Which would you rather own: AAPL or S&P 600 Small Cap Index?

Holding just AAPL would be taking substantial security-specific and sector risk which will be uncompensated because they can be diversified. Market capitalization is not synonymous with diversification.
by jalbert
Fri Oct 13, 2017 10:00 pm
Forum: Investing - Help with Personal Investments
Topic: Please Criticize my Funds.
Replies: 27
Views: 2109

Re: Please Criticize my Funds.

Summarizing, I think a good balance between all-in-one funds and a DIY portfolio would be achieved with: 403b and 401K: Target Retirement 2035 Taxable: VTSAX (or VTIAX) Roth: VTSAX + VTIAX + VBTLX Set asset allocation and rebalance in Roth so that the combined allocation of VTSAX (US equity), VTIAX ...
by jalbert
Fri Oct 13, 2017 4:19 pm
Forum: Investing - Help with Personal Investments
Topic: Please Criticize my Funds.
Replies: 27
Views: 2109

Re: Please Criticize my Funds.

+1 Bonds. I also believe you should have more bonds. Suggest 30% in bonds. Why? --25-30% is recommended for new investors with unknown risk tolerance. --Moving from 10% to 30% is a conservative move, --but 30% bonds fits the aggressive rule-of-thumb "age - 10 in bonds". Bonds in taxable. The additi...
by jalbert
Fri Oct 13, 2017 1:53 am
Forum: Personal Finance (Not Investing)
Topic: 2 factor authentication - What if something happens to you?
Replies: 50
Views: 4037

Re: 2 factor authentication - What if something happens to you?

I still don't understand the risk of sharing my password with my spouse. What would the Vanguard logs of system access show? The IP addresses of the devices used to connect would likely also show up in the logs, not just the login name used for the connection. That and other forensic evidence might...
by jalbert
Thu Oct 12, 2017 1:05 pm
Forum: Personal Finance (Not Investing)
Topic: 2 factor authentication - What if something happens to you?
Replies: 50
Views: 4037

Re: 2 factor authentication - What if something happens to you?

My question is, if you disclose your login information to your spouse how would Vanguard know? It seems someone would have to tell Vanguard they had done this. If I had a theft of my Vanguard funds and were asked by Vanguard if I had shared my password with anyone, surely my answer would be “no”. A...
by jalbert
Thu Oct 12, 2017 2:50 am
Forum: Investing - Help with Personal Investments
Topic: Please Criticize my Funds.
Replies: 27
Views: 2109

Re: Please Criticize my Funds.

This needs to be greatly simplified. If you can get a high quality target retirement fund for .07% in the 401K, that is a screaming good deal. Here is a simple, but very effective approach: Target Retirement 2035 in both 401K and 403b. LifeStrategy Moderate Growth or Balanced Index fund (vbiax) in R...
by jalbert
Thu Oct 12, 2017 1:53 am
Forum: Personal Finance (Not Investing)
Topic: 2 factor authentication - What if something happens to you?
Replies: 50
Views: 4037

Re: 2 factor authentication - What if something happens to you?

An executor, POA, or joint account holder can access an account for which they are legally authorized. They need to have their own separate login name and password for online access, and their online account will be able to access the investment account if they are legally authorized to access the i...
by jalbert
Wed Oct 11, 2017 8:43 pm
Forum: Personal Finance (Not Investing)
Topic: 2 factor authentication - What if something happens to you?
Replies: 50
Views: 4037

Re: 2 factor authentication - What if something happens to you?

You can't title an IRA in any name other than yours (until you die). The I in IRA is "Individual."
You can grant power of attorney, typically using an institution's form instead of using a legal document activated by a court.
by jalbert
Wed Oct 11, 2017 8:38 pm
Forum: Personal Finance (Not Investing)
Topic: Growing old without kids or younger caring relatives
Replies: 103
Views: 17840

Re: Growing old without kids or younger caring relatives

More info on senior co-housing communities, one type of aging-in-place community:

http://www.cohousing.org/aging
by jalbert
Tue Oct 10, 2017 11:04 pm
Forum: Personal Finance (Not Investing)
Topic: 2 factor authentication - What if something happens to you?
Replies: 50
Views: 4037

Re: 2 factor authentication - What if something happens to you?

A second principle is that account access should be auditable. Any login should be traceable to precisely one individual.
by jalbert
Tue Oct 10, 2017 10:34 pm
Forum: Investing - Theory, News & General
Topic: Why is inflation so low? Moore's law?
Replies: 23
Views: 2856

Re: Why is inflation so low? Moore's law?

After the 2000 market crash, and ensuing recession, plus all that investment in IT, including much to address year 2000 bug
Y2K spending was a greatly under-appreciated driver of the late 90’s tech bubble, and of the timing of the unwinding that started in March 2000.
by jalbert
Tue Oct 10, 2017 10:27 pm
Forum: Personal Finance (Not Investing)
Topic: 2 factor authentication - What if something happens to you?
Replies: 50
Views: 4037

Re: 2 factor authentication - What if something happens to you?

The principle is that authority and privilege enabled by account credentials should align with legal authority and privileges based on account title, estate executors, and power of attorneys. Vanguard is legally responsible to provide access and account privileges based on legal authority, and they ...
by jalbert
Tue Oct 10, 2017 10:17 pm
Forum: Investing - Theory, News & General
Topic: Factor investing: should financial firms be excluded when screening for value?
Replies: 31
Views: 1440

Re: Factor investing: should financial firms be excluded when screening for value?

I think DFA screens out REITs and utilities, but includes financials. I think Vanguard value indices just apply a value metric to the entire market (within the cap limits of the particular index). S&P Small-cap indices (value or otherwise) have profitability and liquidity screens, but do not exclude...
by jalbert
Tue Oct 10, 2017 7:54 pm
Forum: Personal Finance (Not Investing)
Topic: 2 factor authentication - What if something happens to you?
Replies: 50
Views: 4037

Re: 2 factor authentication - What if something happens to you?

I am interpreting VG's policy to mean if one's account is compromised by the individual(s) the online access information is shared with (otherwise, how could one engage in effective estate planning?). If the wife of Boulderboy's buddy's is going to compromise his buddy's account, his friend has eve...
by jalbert
Tue Oct 10, 2017 2:30 pm
Forum: Investing - Theory, News & General
Topic: Why is inflation so low? Moore's law?
Replies: 23
Views: 2856

Re: Why is inflation so low? Moore's law?

Alan Turing defined how to compute (within some very broad limits) ANYTHING using Turing Machines, which we are all using to type these comments. I am not aware of any similar theorem for Quantum computers, and in my limited (very limited!) understanding of Quantum computers, I don't even see how t...
by jalbert
Tue Oct 10, 2017 1:59 pm
Forum: Personal Finance (Not Investing)
Topic: 2 factor authentication - What if something happens to you?
Replies: 50
Views: 4037

Re: 2 factor authentication - What if something happens to you?

With all of the security risks and advent of 2FA, have y'all thought about contingencies in case something happens to you and your significant other needs to access your accounts, etc? If you go missing with your cell phone, isn't your SO, SOL? My buddy just added a Yubikey to his VG account for 2F...
by jalbert
Mon Oct 09, 2017 4:01 pm
Forum: Investing - Theory, News & General
Topic: Vanguard's long-term outlook for TIPS
Replies: 92
Views: 6905

Re: Vanguard's long-term outlook for TIPS

Someone with years of working life ahead of them is less exposed to inflation than a retiree. A homeowner is less exposed to inflation than a renter. A homeowner with a mortgage is less exposed to inflation than a homeowner who owns their home free and clear. There is not a 1-size-fits-all answer to...
by jalbert
Mon Oct 09, 2017 12:30 am
Forum: Investing - Help with Personal Investments
Topic: I could use some advice on my IRA situation. Not sure what to do.
Replies: 15
Views: 1342

Re: I could use some advice on my IRA situation. Not sure what to do.

GFACX: ER: 1.46% $25,536 HFLCX ER: 1.74% $13,877 NWHWX ER: 1.89% 11,853 FCISX ER: 1.11% $3922 Do I just sell the stocks from WFA and pay the tax? Can I transfer in kind and then just open up a Target Date Fund and then pay any sort of taxes after? Any help and ideas would be greatly appreciated! Yo...
by jalbert
Sat Oct 07, 2017 10:34 pm
Forum: Investing - Help with Personal Investments
Topic: Help! How do I Choose an International Strategy?
Replies: 13
Views: 1280

Re: Help! How do I Choose an International Strategy?

12% VFIAX - Vanguard 500 Index (0.04% ER) 12% VIMAX - Vanguard Mid Cap Index (0.06% ER) 17% VSIAX - Vanguard Small Cap Value Index Fund Admiral (0.07% ER) You may want to know that vimax and vsiax track CRSP indices and CRSP draws lines between market segments at different places than S&P. The text...
by jalbert
Sat Oct 07, 2017 6:23 pm
Forum: Investing - Theory, News & General
Topic: Buffett: U.S. Stocks have been safer than Cash or Treasuries over the last 50 Years.
Replies: 19
Views: 2887

Re: Buffett: U.S. Stocks have been safer than Cash or Treasuries over the last 50 Years.

I infer that Buffett thinks of stocks as being denominated in some non-currency medium such as "equicoin"? I don't think that is correct. Inflation increases the pricing power of the seller of some goods or services, so corporate revenue has a tendency to keep up with or outpace inflation. During t...
by jalbert
Sat Oct 07, 2017 5:25 pm
Forum: Investing - Theory, News & General
Topic: Buffett: U.S. Stocks have been safer than Cash or Treasuries over the last 50 Years.
Replies: 19
Views: 2887

Re: Buffett: U.S. Stocks have been safer than Cash or Treasuries over the last 50 Years.

‘Concurrently, the purchasing power of the dollar declined a staggering 87 per cent. That decrease means that it now takes $1 to buy what could be bought for 13¢ in 1965 (as measured by the Consumer Price Index). A small sleight of hands is that the 87% loss in real terms is the real return of hold...
by jalbert
Sat Oct 07, 2017 2:49 pm
Forum: Investing - Theory, News & General
Topic: Vanguard's long-term outlook for TIPS
Replies: 92
Views: 6905

Re: Vanguard's long-term outlook for TIPS

I have half of my bond holdings in TIPS (as suggested by David Swensen.) However, I have read many articles questioning the usefulness and capabilities of TIPS. And I have been concerned about having such a large stake in my portfolio. Furthermore, Vanguard just sent out an email that concludes: "W...
by jalbert
Fri Oct 06, 2017 3:45 pm
Forum: Investing - Theory, News & General
Topic: VGTSX vs VDVIX / VEIEX blend
Replies: 7
Views: 495

Re: VGTSX vs VDVIX / VEIEX blend

Not really, unless you are counting the possibility of rebalancing between developed and emerging. For lower tax brackets, splitting them has actually improved efficiency while for higher tax brackets you about break even. This all depends on one's situation, but for some typical scenarios they com...
by jalbert
Fri Oct 06, 2017 2:22 pm
Forum: Personal Finance (Not Investing)
Topic: Paper checks, how safe are they?
Replies: 31
Views: 1853

Re: Paper checks, how safe are they?

I often pay by check even tho I have no idea how honest the person may be. The bigger issue is how the honest, legitimate service providers you work with will dispose of your paper checks after they deposit them digitally using a banking app and phone camera. Will they be shredded or just put whole...
by jalbert
Fri Oct 06, 2017 1:22 am
Forum: Investing - Help with Personal Investments
Topic: Please judge my Vanguard portfolio
Replies: 41
Views: 3207

Re: Please judge my Vanguard portfolio

Suppose, hypothetically for the sake of example, you retired 12/31/2017 and your sole source of income will be traditional IRA withdrawals. If you are single with 1 exemption and withdraw $24,000 next year, at today's tax rates, you would owe $1574 in federal income tax. That's an aggregate tax rat...
by jalbert
Fri Oct 06, 2017 12:56 am
Forum: Personal Finance (Not Investing)
Topic: Negotiating merit scholarships
Replies: 32
Views: 1968

Re: Negotiating merit scholarships

As a resident of California he can apply for the Western University Exchange program at U. of Arizona which will cause out of state tuition to be lowered to 1.5x in-state tuition if he is accepted as a WUE student. I don't think there will be much difference in quality of education or academic rigor...
by jalbert
Thu Oct 05, 2017 3:48 pm
Forum: Investing - Help with Personal Investments
Topic: Selling stocks to buy Vanguard Funds
Replies: 9
Views: 798

Re: Selling stocks to buy Vanguard Funds

Depends on your tax bracket and how diverse the stock portfolio is. You may be able to reduce the tax drag by spreading the sale across several or many tax years. You may be able to do it during the depths of a bear market when the gain is less and the index you are buying has fallen by a comparable...
by jalbert
Thu Oct 05, 2017 3:24 pm
Forum: Investing - Help with Personal Investments
Topic: Trying to convince my sister not to use a financial advisor
Replies: 59
Views: 3949

Re: Trying to convince my sister not to use a financial advisor

Well, you could tell her that Vanguard Advisor Services will do the same thing for her for 0.3%.
by jalbert
Thu Oct 05, 2017 11:32 am
Forum: Investing - Theory, News & General
Topic: Muni Bond Funds With Regard to Puerto Rico
Replies: 14
Views: 925

Re: Muni Bond Funds With Regard to Puerto Rico

Bond portfolio managers can buy credit default swaps on bonds they hold if they choose to. These don't have to be wrapped around the bond at initial issue. Munis often have insurance wrapped when the original issue is underwritten because individual investors usually hold a small enough number of th...
by jalbert
Thu Oct 05, 2017 11:18 am
Forum: Personal Consumer Issues
Topic: How do you value your time?
Replies: 97
Views: 3771

Re: How do you value your time?

I'm the kind of person who parks a mile away to avoid paying $20 for parking. I recently got married so this behavior is creating a lot of conflict. My spouse believes in "paying for convenience". I need help in how to value my time so I can find some common ground with my spouse. If I take my annu...
by jalbert
Wed Oct 04, 2017 11:33 pm
Forum: Investing - Help with Personal Investments
Topic: Please judge my Vanguard portfolio
Replies: 41
Views: 3207

Re: Please judge my Vanguard portfolio

I am loving the dividends the 500 gives me When a company distributes profit as a dividend, the value of the company drops by the amount distributed. This does not enhance your total return in any way, and should not influence your decision on whether to hold an SP500 or total US market index in a ...
by jalbert
Wed Oct 04, 2017 11:13 pm
Forum: Investing - Help with Personal Investments
Topic: Please judge my Vanguard portfolio
Replies: 41
Views: 3207

Re: Please judge my Vanguard portfolio

I think this just flew over my head... how would income from a traditional IRA be realized in the zero bracket? Suppose, hypothetically for the sake of example, you retired 12/31/2017 and your sole source of income will be traditional IRA withdrawals. If you are single with 1 exemption and withdraw...
by jalbert
Wed Oct 04, 2017 2:15 pm
Forum: Investing - Help with Personal Investments
Topic: Please judge my Vanguard portfolio
Replies: 41
Views: 3207

Re: Please judge my Vanguard portfolio

Thank you! And that is a good question, I originally rolled into a Roth IRA with the Vanguard and with the new company just went into Roth 401k. I am expecting to retire at a higher tax bracket. I would love your insight though if this does not make sense. The only retirement income that is taxed a...
by jalbert
Mon Oct 02, 2017 11:23 pm
Forum: Investing - Help with Personal Investments
Topic: Please judge my Vanguard portfolio
Replies: 41
Views: 3207

Re: Please judge my Vanguard portfolio

I would second livesoft's view of just holding one properly selected Target Retirement fund in each account as being likely best. I would ask why your 401K is exclusively Roth contributions? This may be optimal for you, but for most people it is not. You want to have enough traditional contributions...
by jalbert
Mon Oct 02, 2017 5:57 pm
Forum: Investing - Theory, News & General
Topic: Why do 10-yrs US Treasuries have a higher yield than European Junk Bonds?
Replies: 34
Views: 3025

Re: Why do 10-yrs US Treasuries have a higher yield than European Junk Bonds?

Otherwise, if the market is agnostic as to which way exchange rates will go (and there is a 50%-50% chance that they'll go each way), The market is not generally agnostic regarding exchange rates. An unconventional way to look at it is that if expected inflation in the US is higher than expected in...
by jalbert
Mon Oct 02, 2017 3:11 pm
Forum: Investing - Theory, News & General
Topic: Is a Roth conversion a good idea if you are in the 15% tax bracket?
Replies: 39
Views: 3721

Re: Is a Roth conversion a good idea if you are in the 15% tax bracket?

Roth conversions are income for the purpose of calculating ACA tax credits. Current marginal tax rate is higher than tax bracket if you get insurance from an ACA exchange and qualify for an ACA tax credit.
by jalbert
Mon Oct 02, 2017 2:13 pm
Forum: Investing - Theory, News & General
Topic: Why do 10-yrs US Treasuries have a higher yield than European Junk Bonds?
Replies: 34
Views: 3025

Re: Why do 10-yrs US Treasuries have a higher yield than European Junk Bonds?

Comparing the expected real returns normalized to a common currency will reflect market efficiency. Different currencies have different expected inflation levels. If you hedge a Euro-denominated bond back to USD with rolling 30 or 90-day contracts you will (as of this writing) get about a 95 bp hedg...
by jalbert
Sat Sep 30, 2017 9:11 pm
Forum: Investing - Theory, News & General
Topic: REITs as "pseudo diversification"
Replies: 44
Views: 3628

Re: REITs as "pseudo diversification"

Vanguard's US REIT Index fund and ETF track the MSCI US REIT Index, which does not include mortgage REITs. I think the Dow Jones US Real Estate (REIT) index includes mortgage REITs, while the Cohen & Steers Realty Majors Index and the MSCI US REIT Index both exclude mortgage REITs.
by jalbert
Fri Sep 29, 2017 6:23 pm
Forum: Investing - Help with Personal Investments
Topic: HSA: Once opened may TIRA money be transferred into the HSA?
Replies: 13
Views: 660

Re: HSA: Once opened may TIRA money be transferred into the HSA?

The one time transfer opportunity is not very useful if you are working. As an example, there is no difference between contributing, say $5000 to a 401K or tIRA and rolling over $5000 from a tIRA to HSA vs just depositing $5000 to the HSA. Also if you are 59.5 or older there is no difference between...
by jalbert
Fri Sep 29, 2017 1:18 pm
Forum: Investing - Help with Personal Investments
Topic: Why don't three goals - sabbatical, early retirement, and retirement - mean 3 different asset allocations?
Replies: 19
Views: 1057

Re: Why don't three goals - sabbatical, early retirement, and retirement - mean 3 different asset allocations?

Klang - I'll be the first to admit that I may not know enough to think through all the ins and outs, but if I understand your question, my thinking was that since I can't use the 457/401k money for the sabbatical, it made sense to think of the money I need for that separately - since it is going to...
by jalbert
Fri Sep 29, 2017 1:54 am
Forum: Investing - Theory, News & General
Topic: Why is this person wrong? Says beating the market is easy.
Replies: 30
Views: 2948

Re: Why is this person wrong? Says beating the market is easy.

Outperforms the market over the last decade, two decades, etc. Yes I know they didn't exist couple decades ago but if they did exist they would outperform the market. Yes it certainly is easy to beat the market in a backtest. It is a classic hedging strategy to invest 90% in, say, a 1-year t-bill a...
by jalbert
Thu Sep 28, 2017 10:24 pm
Forum: Personal Finance (Not Investing)
Topic: I am in the investment advice industry and I'm not sure if I provide any value
Replies: 67
Views: 6382

Re: I am in the investment advice industry and I'm not sure if I provide any value

I feel like a fraud because I know that what I do is not really worth the price tag. The knowledge is out there for any smart person to figure out on their own. I think if you inform the clients of products like Vanguard LifeStrategy and Target Retirement Funds (that cost 6 or 7 bp/yr above the ERs...
by jalbert
Thu Sep 28, 2017 9:50 pm
Forum: Investing - Theory, News & General
Topic: Alternate investment strategies
Replies: 15
Views: 1930

Re: Alternate investment strategies

The more complex an investment product, the more risk there is that it won't work as advertised when you most need it to do so.