Search found 876 matches

by mcraepat9
Wed Jun 20, 2018 12:04 am
Forum: Investing - Theory, News & General
Topic: Is individual Bonds better than Bond Fund?
Replies: 30
Views: 1841

Re: Is individual Bonds better than Bond Fund?

No. Just no. Suze is wrong and her advice is inane on this topic. Individual bonds are not safer than bond funds, and there’s nothing wrong with bond funds. You need them for diversification if we are talking about a muni fund or other “total bond” fund. Unless you are holding a multimillion dollar ...
by mcraepat9
Sun Jun 17, 2018 8:47 pm
Forum: Investing - Help with Personal Investments
Topic: Vanguard Balanced Index Fund Admiral Shares (VBIAX)
Replies: 22
Views: 1917

Re: Vanguard Balanced Index Fund Admiral Shares (VBIAX)

Yes. "Horrible" just seems like a really strong word, though. Holding bitcoin is probably "horrible." But a balanced fund that costs 7 basis points? It's 2 or 3 basis points more than Total Stock or Total Bond, and it offers fewer opportunities for tax optimization, but I think there's real value i...
by mcraepat9
Sun Jun 17, 2018 7:39 pm
Forum: Investing - Help with Personal Investments
Topic: Vanguard Balanced Index Fund Admiral Shares (VBIAX)
Replies: 22
Views: 1917

Re: Vanguard Balanced Index Fund Admiral Shares (VBIAX)

TheTimeLord wrote:
Sun Jun 17, 2018 5:31 pm
Is Vanguard Balanced Index Fund Admiral Shares (VBIAX) a horrible choice for a taxable account?
Yes.

Compared to holding Total Stock and Total Bond separately, VBIAX is materially worse.
by mcraepat9
Thu Jun 14, 2018 10:59 pm
Forum: Investing - Help with Personal Investments
Topic: 28 with a wife and new baby
Replies: 31
Views: 2065

Re: 28 with a wife and new baby

We just had a baby in February. Congratulations and best wishes to your family! Reading through your post, sounds like you are in perfect shape and on track for an excellent retirement. [...] convincing advice on this forum that suggested it was a good idea to max out retirement accounts before wor...
by mcraepat9
Thu Jun 14, 2018 10:54 pm
Forum: Investing - Help with Personal Investments
Topic: 28 with a wife and new baby
Replies: 31
Views: 2065

Re: 28 with a wife and new baby

Hi all, I've gotten great advice here in years past, so I thought I should check in and see what you all think of my current plan and situation. I'm 28 but I'll be 29 in a few months. My wife just turned 29. We just had a baby in February. congrats! We've got about $37k saved for retirement, ~$10k ...
by mcraepat9
Thu Jun 14, 2018 10:55 am
Forum: Personal Finance (Not Investing)
Topic: direct rollover from NY 529
Replies: 4
Views: 347

Re: direct rollover from NY 529

Nothing in the guidance indicates that this only applies to individuals who are otherwise required to file a NYS income tax return.
by mcraepat9
Thu Jun 14, 2018 12:51 am
Forum: Investing - Help with Personal Investments
Topic: Help with buying municipal bonds please
Replies: 4
Views: 792

Re: Help with buying municipal bonds please

I’ve got 100K in retirement at 90:10 stocks/bonds all tax-protected accounts. Are muni bonds a good way to go for my first non-tax protected investment if I’d like to get to 80:20? I’m 25 years from retirement, but feeling a little vulnerable being so stock heavy. Where do I buy muni bonds and are ...
by mcraepat9
Wed Jun 13, 2018 11:09 pm
Forum: Investing - Help with Personal Investments
Topic: $3K, Which Vanguard Mutual Fund?
Replies: 13
Views: 1196

Re: $3K, Which Vanguard Mutual Fund?

Hey everyone! I need some advice. My 457 and Vanguard Roth IRA TDF seem to be very similar (see below), now that I have $3K in my 2035 TDF, should I just let it ride? not sure what you mean by “let it ride” - it seems like the asset allocation in your Roth roughly matches your 457. If you are comfo...
by mcraepat9
Wed Jun 13, 2018 7:10 pm
Forum: Personal Finance (Not Investing)
Topic: direct rollover from NY 529
Replies: 4
Views: 347

Re: direct rollover from NY 529

Have not done this but I do recall looking into it in the past - I think the earnings piece is taxable by NYS regardless of the federal income tax treatment. If I were you I would leave it where it is. See page 56: http://cdn.unite529.com/jcdn/files/NYD/pdfs/DisclosureBooklet.pdf See page 16-17 (ins...
by mcraepat9
Wed Jun 13, 2018 6:36 pm
Forum: Investing - Help with Personal Investments
Topic: help with expense ratio
Replies: 8
Views: 394

Re: help with expense ratio

Fidelity has this unfortunate setup where they offer both Managed and Index Target Date Funds eg: FBIFX Fidelity Freedom® Index 2040 Fund Investor: ER 0.15 vs FFFFX Fidelity Freedom 2040: ER: 0.75 and FIOFX Fidelity Freedom Index 2045 Investor: ER 0.15 vs FFFGX Fidelity Freedom 2045: ER 0.75 They m...
by mcraepat9
Sun Jun 10, 2018 8:10 pm
Forum: Investing - Help with Personal Investments
Topic: Portfolio Review
Replies: 17
Views: 1112

Re: Portfolio Review

re DFA. Got it. I'll swap my 401K holdings for the DFA small cap fubd and then purchase my 20% intl in the VG taxable account. Love this forum! The DFA fund is small-cap, not small-cap value. Given the higher ER of the DFA fund, I think VTMSX (S&P small-cap 600) in taxable space is better. I am som...
by mcraepat9
Sun Jun 10, 2018 2:41 pm
Forum: Investing - Help with Personal Investments
Topic: Portfolio Diversification - General Advice Wanted
Replies: 38
Views: 1708

Re: Portfolio Diversification - General Advice Wanted

One basic concept — any single investment that makes up less that 5% of your portfolio is too small to have an effect on your overall return and risk. So all those 1% investments complicate your portfolio without improving/diversifying it. Not to mention that those Lifepath funds have high expense ...
by mcraepat9
Sun Jun 10, 2018 1:17 pm
Forum: Investing - Theory, News & General
Topic: Why large cap if small cap is better?
Replies: 20
Views: 1522

Re: Why large cap if small cap is better?

delamer wrote:
Sun Jun 10, 2018 1:10 pm
Increased volatility and no assurance that past performance will continue into the future.
+1
by mcraepat9
Sun Jun 10, 2018 2:09 am
Forum: Investing - Help with Personal Investments
Topic: Portfolio Diversification - General Advice Wanted
Replies: 38
Views: 1708

Re: Portfolio Diversification - General Advice Wanted

What I'd like to know is if I should be more diversified or less diversified...? How do you define diversified? E.g., look at what one of your options, the LifePath Index 2055 Fund , contains. How diversified would you say that is? I'm speaking of all investments combined, which would include all o...
by mcraepat9
Sun Jun 10, 2018 1:58 am
Forum: Investing - Help with Personal Investments
Topic: Portfolio Diversification - General Advice Wanted
Replies: 38
Views: 1708

Re: Portfolio Diversification - General Advice Wanted

What I'd like to know is if I should be more diversified or less diversified...? How do you define diversified? E.g., look at what one of your options, the LifePath Index 2055 Fund , contains. How diversified would you say that is? I'm speaking of all investments combined, which would include all o...
by mcraepat9
Sun Jun 10, 2018 1:38 am
Forum: Investing - Help with Personal Investments
Topic: Portfolio Diversification - General Advice Wanted
Replies: 38
Views: 1708

Re: Portfolio Diversification - General Advice Wanted

Just to clarify what you’re saying, you have a portion of your 401k contributions going into each of those funds (including all eight lifepath funds)? How did you decide that? Just trying to understand the strategy you are undertaking and how you arrived at it. Your portfolio doesn’t seem very diver...
by mcraepat9
Sun Jun 10, 2018 1:36 am
Forum: Investing - Help with Personal Investments
Topic: Portfolio Review
Replies: 17
Views: 1112

Re: Portfolio Review

Appreciate the color on the intl exposure. re the IRA rollover, just to clarify: I move the traditional IRA pre-tax $ at Schwab to my 401k at Wells (IRA rollover) and then put post-tax dollars, i.e, non-deductible contributions, into the traditional IRA which I then convert to a ROTH IRA, correct? ...
by mcraepat9
Sun Jun 10, 2018 1:15 am
Forum: Investing - Help with Personal Investments
Topic: Portfolio Review
Replies: 17
Views: 1112

Re: Portfolio Review

mcraepat9, thanks again. I'll purchase VEMAX in my taxable to get my total intl exposure to ~ 20% (10% VEMAX and 10% VTMNX). I'm certainly nowhere near as smart as the collective wisdom of this forum to have a more informed opinion. international exposure on this forum is like discussing politics -...
by mcraepat9
Sun Jun 10, 2018 1:00 am
Forum: Investing - Help with Personal Investments
Topic: Portfolio Review
Replies: 17
Views: 1112

Re: Portfolio Review

DFA Investment Dimensions Group Inc: US Small Cap Portfolio; Institutional Class Shares (DFSTX) Slightly off topic:: any reason I shouldn't swap VSMAX for VTMSX? The latter seems a better fit for taxable holdings. This DFA fund gives you much better small cap exposure than either of the Vanguard fu...
by mcraepat9
Sun Jun 10, 2018 12:55 am
Forum: Investing - Help with Personal Investments
Topic: Portfolio Review
Replies: 17
Views: 1112

Re: Portfolio Review

mcraepat9, thank you for taking the time to review my post. My responses to your comments: 1: My mistake. NYC state and local tax is ~ 10%. 2: I believe Boggle recommended no more than 20% to intl. My 401K includes VG Target retirement Funds, a DFA Fund, Mainstay and some VG small cap funds. The on...
by mcraepat9
Sun Jun 10, 2018 12:16 am
Forum: Investing - Help with Personal Investments
Topic: Portfolio Review
Replies: 17
Views: 1112

Re: Portfolio Review

5% state/local income tax rate? Is that right? In NYC I would expect that number to be closer to 10%. Or do you live somewhere else, like Connecticut? Otherwise the asset allocation seems okay, though I would probably see if I could broaden my exposure to emerging markets (as opposed to just develop...
by mcraepat9
Sun Jun 10, 2018 12:14 am
Forum: Investing - Help with Personal Investments
Topic: Why not use Fidelity High Income Fund SPHIX?
Replies: 14
Views: 1499

Re: Why not use Fidelity High Income Fund SPHIX?

Bonds are supposed to be safe assets. If you are looking for more yield, increase your allocation to stocks and decrease your bond allocation. The problem is holders of high yield junk bonds have historically not been adequately compensated for credit risk and call risk versus government bonds. If y...
by mcraepat9
Sun Jun 10, 2018 12:04 am
Forum: Investing - Help with Personal Investments
Topic: Short-term gain: clarification
Replies: 6
Views: 391

Re: Short-term gain: clarification

Depends on what cost basis method you use. If you use specific ID, you can select the exact tax lots you sell (and selecting the original purchase would give you LTCG treatment for your gains).
by mcraepat9
Sun Jun 10, 2018 12:02 am
Forum: Investing - Help with Personal Investments
Topic: Vanguard STAR, Vanguard 2030 TDF, pay extra toward the house, or other?
Replies: 22
Views: 1365

Re: Vanguard STAR, Vanguard 2030 TDF, pay extra toward the house, or other?

What is the “stupid mistake” you are referencing re your mortgage? I am not following.
by mcraepat9
Sat Jun 09, 2018 12:35 pm
Forum: Investing - Help with Personal Investments
Topic: Getting into real estate?
Replies: 10
Views: 934

Re: Getting into real estate?

Renting is clearly the best move at the moment — please disabuse yourself of the notion that renting is “throwing money away”.
by mcraepat9
Sat Jun 09, 2018 11:15 am
Forum: Investing - Help with Personal Investments
Topic: Help with my options for 401K: Pick low ER target date fund or 3 fund?
Replies: 4
Views: 312

Re: Help with my options for 401K: Pick low ER target date fund or 3 fund?

Our company just recently switched over to Fidelity from Principal to manage our 401K. I'm able to pick my investments today so curious as to what people thought would be best. I like tinkering with investments to a point, but want something manageable as well. Here are two scenarios I'm battling b...
by mcraepat9
Sat Jun 09, 2018 9:00 am
Forum: Investing - Help with Personal Investments
Topic: Portfolio Review (401K vs. Roth 401K contribution question)
Replies: 20
Views: 625

Re: Portfolio Review (401K vs. Roth 401K contribution question)

2017 was the first year that we were not able to fully contribute to our Roth IRAs. Seeing as how you have no balances in Traditional IRAs, you should consider doing the Backdoor Roth to continue putting money in your Roth IRA. I'm sure others will follow up with answers to your questions, but I ju...
by mcraepat9
Wed Jun 06, 2018 6:55 pm
Forum: Personal Finance (Not Investing)
Topic: Super funding 529
Replies: 13
Views: 1144

Re: Super funding 529

The analysis you need to do is to trade off the state 529 subsidy vs the dividend & capital gains taxes from investing the equivalent amount in a taxable brokerage account. So we're evaluating between $100k in 529 (costing us $98,730 after tax subsidy) vs $10k in 529 + $90k in brokerage account (co...
by mcraepat9
Wed Jun 06, 2018 1:19 pm
Forum: Personal Finance (Not Investing)
Topic: Super funding 529
Replies: 13
Views: 1144

Re: Super funding 529

Very helpful mcraepat9. I'm going to run some numbers on pros/cons of superfunding vs. staggering the payments to capture max deductions. This seems to be the main decision I need to make. What is more important? Gain in the account or saving $1K in taxes? If you put in $100K, the market goes up sa...
by mcraepat9
Wed Jun 06, 2018 10:18 am
Forum: Personal Finance (Not Investing)
Topic: Super funding 529
Replies: 13
Views: 1144

Re: Super funding 529

Is that a NY law that doesn’t allow carry forward? WI law allows carry forward up to 5 years of contributions. It's not like there is a law that prohibits carryforward, but the NYS tax law does not permit a NYS state/local tax deduction for 529 contribution of more than $10k per married couple in a...
by mcraepat9
Wed Jun 06, 2018 9:47 am
Forum: Personal Finance (Not Investing)
Topic: Super funding 529
Replies: 13
Views: 1144

Re: Super funding 529

I’m planning to superfund a 529 plan once my first child comes along shortly. I’ve read a bunch of other BH posts on 529s but I’d like to quickly run my circumstances and decision by this community to see if I’m missing anything. Quick background: - MFJ, top marginal tax rate in NYC (8.82% state + ...
by mcraepat9
Tue Jun 05, 2018 4:10 pm
Forum: Investing - Help with Personal Investments
Topic: 14yo very very new to investing.
Replies: 24
Views: 1768

Re: 14yo very very new to investing.

I just started reading about investing and I want to make sure I understand something here. So if bonds, CDs, bills etc they guarantee they will pay you a fixed interest rate in return for using your money, but the value of that loan (i.e. investment) changes when interest rates rise or fall then w...
by mcraepat9
Mon Jun 04, 2018 10:28 pm
Forum: Investing - Help with Personal Investments
Topic: Anyone Use Fidelity's Brokerage Link - 401k
Replies: 11
Views: 780

Re: Anyone Use Fidelity's Brokerage Link - 401k

Hi, I was wondering if anyone is using Fidelity Brokerage Link as part of their employers 401k plan? Mine offers it but there's a $25 per quarter fee. Presumably it'll give me access to anything Fidelity has compared to the restricted, mostly high fee and target date funds, that are offered in my 4...
by mcraepat9
Mon Jun 04, 2018 10:20 pm
Forum: Investing - Help with Personal Investments
Topic: Three fund portfolio -- Mistake to have only International Equity in Tax-Deferred?
Replies: 3
Views: 698

Re: Three fund portfolio -- Mistake to have only International Equity in Tax-Deferred?

Hello, Is it a mistake to set up a three-fund portfolio which places all of the US equities in the taxable account? I'm in the process of setting up a three-Fund Portfolio + REIT, across tax-deferred and taxable accounts. Given the funds available in my tax-deferred accounts, I won't be able to do ...
by mcraepat9
Mon Jun 04, 2018 10:15 pm
Forum: Investing - Theory, News & General
Topic: Thinking of a divorce - from Vanguard
Replies: 41
Views: 5409

Re: Thinking of a divorce - from Vanguard

sergeant wrote:
Mon Jun 04, 2018 10:12 pm
The good thing with this divorce is that you don't have to give Vanguard half of your assets.
zing
by mcraepat9
Mon Jun 04, 2018 12:06 pm
Forum: Investing - Help with Personal Investments
Topic: Getting started with Non-retirement account
Replies: 15
Views: 1063

Re: Getting started with Non-retirement account

1.)I didn’t think about maxing out 401k because of their fees and poor management, but I believe my wife can choose her own investments. I will look into this. It takes higher fees than you might imagine to make it financially smart to give up a massive tax advantage - probably approaching 2%. Also...
by mcraepat9
Mon Jun 04, 2018 11:34 am
Forum: Investing - Help with Personal Investments
Topic: Allocating Our Portfolio
Replies: 5
Views: 514

Re: Allocating Our Portfolio

Hi, my wife and I are just getting around to allocating our portfolio. I've done some research and this is what I've come up with. Her current ADP 401k doesn't have many good options so we just put it all in one fund and are using her rollover account to balance things out. I just want to make sure...
by mcraepat9
Sun Jun 03, 2018 6:15 pm
Forum: Investing - Help with Personal Investments
Topic: Request model portfolio and IPS development help
Replies: 14
Views: 1004

Re: Request model portfolio and IPS development help

Way too complicated. Three fund portfolio makes much more sense than this. This thread should be enlightening: https://www.bogleheads.org/forum/viewtopic.php?f=10&t=250534&newpost=3956328 Thank you. I have read through about half of this thread and I will come back to it again. There is much in thi...
by mcraepat9
Sun Jun 03, 2018 2:06 pm
Forum: Investing - Help with Personal Investments
Topic: Admiral Shares of Vanguard Fund
Replies: 7
Views: 753

Re: Admiral Shares of Vanguard Fund

If it drops below $10k as a result of market fluctuation, they won't downgrade you to investor shares. If you sell and, after giving effect to the sale, you are below $10k, you will be converted to investor shares.
by mcraepat9
Sun Jun 03, 2018 1:14 pm
Forum: Investing - Help with Personal Investments
Topic: Request model portfolio and IPS development help
Replies: 14
Views: 1004

Re: Request model portfolio and IPS development help

Way too complicated. Three fund portfolio makes much more sense than this.

This thread should be enlightening: viewtopic.php?f=10&t=250534&newpost=3956328
by mcraepat9
Sat Jun 02, 2018 3:01 pm
Forum: Investing - Theory, News & General
Topic: Factor Friendly Four Fund portfolio
Replies: 19
Views: 1991

Re: Factor Friendly Four Fund portfolio

1. How are you calculating after-tax returns (i.e. using your specific tax inputs)? Obviously it's hard to generalize about "after-tax returns" given the litany of possibilities given each taxpayer's individual rate situation. I used maximum rates, actually. It was easier than finding my marginal r...
by mcraepat9
Sat Jun 02, 2018 2:03 pm
Forum: Investing - Theory, News & General
Topic: Factor Friendly Four Fund portfolio
Replies: 19
Views: 1991

Re: Factor Friendly Four Fund portfolio

Instead of SLYV, I would use IJS. SLYV has an unusually high amount of capital gains distributed each year. SLYV has an expense ratio that is 10bps cheaper than IJS, so in a tax-advantaged account it definitely has the edge in IMHO. For a taxable account, I'll admit that the distributed ST gains ma...
by mcraepat9
Fri Jun 01, 2018 4:25 pm
Forum: Investing - Theory, News & General
Topic: Factor Friendly Four Fund portfolio
Replies: 19
Views: 1991

Re: Factor Friendly Four Fund portfolio

Instead of SLYV, I would use IJS. SLYV has an unusually high amount of capital gains distributed each year.
by mcraepat9
Thu May 31, 2018 1:58 am
Forum: Investing - Help with Personal Investments
Topic: ITOT versus VTSAX
Replies: 25
Views: 1863

Re: ITOT versus VTSAX

This is a comical amount of time and energy put into a single basis point difference. There are probably dozens of other things you could be doing to optimize your investments/finances that are more valuable than this debate.

ITOT is fine.
by mcraepat9
Tue May 29, 2018 8:06 pm
Forum: Investing - Help with Personal Investments
Topic: Supplementing a Target Date fund?
Replies: 20
Views: 1857

Re: Supplementing a Target Date fund?

Hello! I'm a new Boglehead and just purchased my first Vanguard fund in a Roth IRA-- the Target Date 2055 fund (VFFVX). I like its allocation of approx. 90% equity/10% bonds, and I REALLY like the fact that it re-balances over time, however-- I would like to incorporate a bit more risk and 'depth' ...
by mcraepat9
Tue May 29, 2018 7:33 pm
Forum: Forum Issues and Administration
Topic: Analysis of Topics - Has This Ever Been Done?
Replies: 13
Views: 1370

Re: Analysis of Topics - Has This Ever Been Done?

lgs88 wrote:
Tue May 29, 2018 10:44 am
How much international do I need? What's wrong with 100% stocks? Fidelity or Vanguard?
These are my personal favorites - at some point Bogleheads should treat these as "off-topic" and ban them like political posts. But I digress...
by mcraepat9
Tue May 29, 2018 7:27 pm
Forum: Investing - Theory, News & General
Topic: General Electric
Replies: 57
Views: 6710

Re: General Electric

I have held GE personally for the past few months, through the ups and downs [my thoughts and prayers are with you] . More and more people are telling me to sell and I am not quite convinced yet. On one hand GE is a historically significant company [past performance is not indicative of future resu...
by mcraepat9
Tue May 29, 2018 6:13 pm
Forum: Investing - Help with Personal Investments
Topic: ITOT versus VTSAX
Replies: 25
Views: 1863

Re: ITOT versus VTSAX

The correct direction is not to use E*Trade when places like Vanguard, Fidelity, TDAmeritrade, Schwab would be better. portfoliovisualizer.com will check correlation. With the Vanguard Solo 401k you can't buy the Admiral shares therefore the expense ratio would be 0.14% at Vanguard compared to a po...