Search found 3232 matches

by rkhusky
Fri Dec 09, 2016 8:27 pm
Forum: Investing - Theory, News & General
Topic: Vanguard Estimated Year End Distributions
Replies: 27
Views: 1713

Re: Vanguard Estimated Year End Distributions

walletless wrote:Only 40% QDI for Emerging Markets (VEMAX)! Really questioning its place in taxable now :(


But you can claim the foreign tax credit to compensate.
by rkhusky
Thu Dec 08, 2016 1:48 pm
Forum: Investing - Theory, News & General
Topic: Explain why Rebalancing isn't Market Timing?
Replies: 205
Views: 5145

Re: Explain why Rebalancing isn't Market Timing?

If you change your AA or ignore your AA because stocks are at all time highs, that would be market timing
by rkhusky
Thu Dec 08, 2016 1:42 pm
Forum: Investing - Theory, News & General
Topic: Explain why Rebalancing isn't Market Timing?
Replies: 205
Views: 5145

Re: Explain why Rebalancing isn't Market Timing?

Rebalancing is based on the current asset allocation of your portfolio. Market timing is based on the expectation of where the market will be in the future. Although, I think one could set mechanical rules that include some expectation of the future, just like most people expect stocks to rise in th...
by rkhusky
Thu Dec 08, 2016 11:49 am
Forum: Investing - Help with Personal Investments
Topic: Unload Healthcare Fund?
Replies: 36
Views: 2251

Re: Unload Healthcare Fund?

I bought Vanguards Healthcare fund years ago (VGHCX, that was converted to admiral). I have held it these years in spite of becoming a believer in the simplicity, low cost, and relative performance of total stock index fund because it just kept doing so well. It is worth 4 times what I paid for it....
by rkhusky
Wed Dec 07, 2016 3:26 pm
Forum: Investing - Help with Personal Investments
Topic: TSP Allocations 43 yr old
Replies: 30
Views: 2112

Re: TSP Allocations 43 yr old

Note also that the I Fund also does not include small caps. Vanguard's Emerging Market fund has large and small caps. Vanguard's FTSE Small ex-US has developed and emerging small caps. If you use both, you will be double counting small emerging, but it shouldn't be a big deal.
by rkhusky
Wed Dec 07, 2016 12:38 pm
Forum: Investing - Help with Personal Investments
Topic: TSP Allocations 43 yr old
Replies: 30
Views: 2112

Re: TSP Allocations 43 yr old

The above notwithstanding, my own TSP is more heavily tilted towards equities, than my taxable portfolio. The latter has lots of tax-free short-term and intermediate-term bonds. I figure that fluctuations in the TSP – due to overweighting in equities – are more tolerable than fluctuations in my tax...
by rkhusky
Wed Dec 07, 2016 7:48 am
Forum: Investing - Theory, News & General
Topic: No Growth?
Replies: 15
Views: 1592

Re: No Growth?

I'm also only small value basically. Everyone cant pile into small value, so what data would tell you when to leave the strategy Sure they can. What were small value stocks will turn into small/mid growth stocks and what were small growth stocks will turn into small value stocks. If one has a relat...
by rkhusky
Tue Dec 06, 2016 5:26 pm
Forum: Investing - Help with Personal Investments
Topic: Another "emergency fund in muni bonds" question...
Replies: 14
Views: 1210

Re: Another "emergency fund in muni bonds" question...

I currently have emergency funds in savings, short term tax-exempt, limited term tax exempt and intermediate term tax exempt (although the limited term is there because I recently did a TLH on the intermediate term).
by rkhusky
Tue Dec 06, 2016 5:13 pm
Forum: Personal Finance (Not Investing)
Topic: How to calculate your AMT sweet spot
Replies: 15
Views: 1237

Re: How to calculate your AMT sweet spot

The advantage of a spreadsheet is that you can play with tax rates to your heart's content.
by rkhusky
Tue Dec 06, 2016 5:05 pm
Forum: Investing - Theory, News & General
Topic: High Grade Munis -
Replies: 3
Views: 609

Re: High Grade Munis -

Vanguard's Short Term Tax Exempt distribution is 22% AAA, 58% AA, 14% A and 4% BBB, while the Intermediate Term distribution is 21% AAA, 54% AA, 18% A and 5% BBB. The historical default rates for AAA and AA (and even A rated) munis are very low. See http://www.naic.org/documents/committees_e_capad_i...
by rkhusky
Mon Dec 05, 2016 3:30 pm
Forum: Investing - Theory, News & General
Topic: Benefits of TLH Intermediate Muni Tax exempt
Replies: 26
Views: 2474

Re: Benefits of TLH Intermediate Muni Tax exempt

I think of it as not having to wait as long for the increased interest rates to pay off.
by rkhusky
Sat Dec 03, 2016 9:17 pm
Forum: Personal Finance (Not Investing)
Topic: Do You Consider Dividends As Income?
Replies: 65
Views: 3880

Re: Do You Consider Dividends As Income?

I consider dividends to be income if my net worth increases because of them, but not otherwise.
by rkhusky
Fri Dec 02, 2016 12:14 pm
Forum: Personal Finance (Not Investing)
Topic: Roth IRA or Traditional IRA??? New Investor
Replies: 17
Views: 681

Re: Roth IRA or Traditional IRA??? New Investor

Without knowing more information, contributing $18K to a Traditional 401K and $5.5K to a Roth IRA is a good mix of Traditional and Roth for most people. Also, poster grabiner often points out that the Roth IRA is good for many people in the 15% tax bracket, due to how Social Security is taxed in ret...
by rkhusky
Fri Dec 02, 2016 12:08 pm
Forum: Investing - Help with Personal Investments
Topic: wash sale rule?
Replies: 5
Views: 343

Re: Does a realized gain ever affect the wash sale rule?

On the other hand, your losses on the first sale will be used to offset the gains on the later sale. Most people like to use TLH to reduce income, since that is taxed at a higher rate than capital gains.
by rkhusky
Wed Nov 30, 2016 8:33 am
Forum: Investing - Help with Personal Investments
Topic: Is a CD rate of 3.01% for 84mo a good deal?
Replies: 26
Views: 3025

Re: Is a CD rate of 3.01% for 84mo a good deal?

Hello everyone, I am new to this board, I hope to benefit from your experience, helpfully someone know the answer to my questions: 1) is it possible to withdraw earlier only PART of the deposit ?.. and, would the penalty apply ONLY to the amount withdrawn ?.. or, the penalty will apply to the whole...
by rkhusky
Tue Nov 29, 2016 7:42 pm
Forum: Personal Finance (Not Investing)
Topic: Anyone cancelled covered CA insurance?
Replies: 20
Views: 1237

Re: Anyone cancelled covered CA insurance?

Daughter is starting employer healthcare on dec1. She cancelled covered CA today. They are telling her she has to pay for the next 14 days regardless. That's their lead time for changes. They threatened small claims court to recoup the non payment. Thoughts? She of course just wants to pay it. Prob...
by rkhusky
Tue Nov 29, 2016 1:55 pm
Forum: Investing - Help with Personal Investments
Topic: Vanguard LifeStrategy Funds in Taxable account
Replies: 31
Views: 2193

Re: Vanguard LifeStrategy Funds in Taxable account

Current balance Available balance Shares Price $28.75 Average cost per share $23.01 Total cost Unrealized gain/loss $98,527.71 If you have 17,165 shares, that is correct. Remember that both your cash contributions and your reinvested dividends and cap gains have already been taxed, so they are equi...
by rkhusky
Tue Nov 29, 2016 1:44 pm
Forum: Investing - Help with Personal Investments
Topic: Is a CD rate of 3.01% for 84mo a good deal?
Replies: 26
Views: 3025

Re: Is a CD rate of 3.01% for 84mo a good deal?

The EWP does not seem that generous. I was told that if the money is withdrawn early there would be a penalty of 6 months interest. Since the CD would be for $175,000, this represents a penalty of $2625. I have never owned a CD before so perhaps I'm misunderstanding but that's what the rep told me....
by rkhusky
Tue Nov 29, 2016 10:41 am
Forum: Investing - Help with Personal Investments
Topic: Vanguard LifeStrategy Funds in Taxable account
Replies: 31
Views: 2193

Re: Vanguard LifeStrategy Funds in Taxable account

Again my question was, do I have to pay the 15% on the unrealized capital gains that shows for these funds in addition to the capital gain distribution tax I am paying yearly? No, the unrealized gains listed on the Vanguard web site are the internal gains that the fund has for its stock holdings. W...
by rkhusky
Tue Nov 29, 2016 10:26 am
Forum: Investing - Theory, News & General
Topic: Military Pension (Or any pension) - Roth vs. Traditional for 401K
Replies: 21
Views: 2323

Re: Military Pension (Or any pension) - Roth vs. Traditional for 401K

The way I figure it, 'worst' case scenario we have 2x pensions and only need to tap the Traditional accounts for 'fun' spending, paying a little more in taxes as a result. Until you reach 70.5. Then you will be required to start withdrawing the specified Required Minimum Distribution (RMD), which s...
by rkhusky
Mon Nov 28, 2016 8:04 pm
Forum: Investing - Help with Personal Investments
Topic: Vanguard LifeStrategy Funds in Taxable account
Replies: 31
Views: 2193

Re: Vanguard LifeStrategy Funds in Taxable account

With what are you replacing the bond portion of the Lifestrategy funds and where is that being placed?
Do you anticipate being in the 15% tax bracket in the near future or at any time?
by rkhusky
Mon Nov 28, 2016 7:53 pm
Forum: Investing - Help with Personal Investments
Topic: Better fund while accumulating
Replies: 5
Views: 625

Re: Better fund while accumulating

I think using an index target date fund in an IRA is a great idea. You get thousands and thousands of stocks and bonds, professional management, automatic reduction of stocks as you get closer to retirement, and frequent rebalancing, all at a very low price.
by rkhusky
Mon Nov 28, 2016 3:15 pm
Forum: Investing - Help with Personal Investments
Topic: Best tax inefficient total market stock fund
Replies: 8
Views: 981

Re: Best tax inefficient total market stock fund

Also keep in mind that you can't tax lost harvest (TLH) in an IRA. Generally higher return means higher volatility, which is fine when that results in gains, not so much when it means losses.
by rkhusky
Mon Nov 28, 2016 10:18 am
Forum: Investing - Help with Personal Investments
Topic: Vanguard Ohio Tax-Exempt Money Market Fund being liquidated
Replies: 5
Views: 950

Re: Vanguard Ohio Tax-Exempt Money Market Fund being liquidated

Wow, the below is terrible policy. There are many people who don't monitor their accounts very carefully and will receive a distribution without their consent. Vanguard should just exchange the fund into a comparable MM fund. 7. What if I hold the fund in an IRA or retirement plan account? You may ...
by rkhusky
Sat Nov 26, 2016 12:51 pm
Forum: Investing - Help with Personal Investments
Topic: S&P 500 Equal Weight Index
Replies: 15
Views: 1285

Re: S&P 500 Equal Weight Index

This shouldn't be hard, but I'm having trouble finding some choices for an equal weight S&P index fund. RSP comes up on searches often, but it's charge of 0.4 seems higher than I expected. Since an equal weight index requires a lot more work to implement than a cap-weighted index, it should com...
by rkhusky
Sat Nov 26, 2016 10:33 am
Forum: Investing - Theory, News & General
Topic: What do others mean by "Diversification Benefit" or Portfolio Efficiency?
Replies: 27
Views: 2198

Re: What do others mean by "Diversification Benefit" or Portfolio Efficiency?

Standard deviation is a convenient measure of risk, but it doesn't tell the whole story because it doesn't include the time scale. Short term fluctuations, even though they may be large, are not as important as long term fluctuations. Very true, but long term fluctuations are generated by compoundi...
by rkhusky
Sat Nov 26, 2016 7:35 am
Forum: Investing - Theory, News & General
Topic: What do others mean by "Diversification Benefit" or Portfolio Efficiency?
Replies: 27
Views: 2198

Re: What do others mean by "Diversification Benefit" or Portfolio Efficiency?

Standard deviation is a convenient measure of risk, but it doesn't tell the whole story because it doesn't include the time scale. Short term fluctuations, even though they may be large, are not as important as long term fluctuations.
by rkhusky
Fri Nov 25, 2016 9:18 pm
Forum: Investing - Help with Personal Investments
Topic: Reduce MAGI to capture full child tax credit?
Replies: 21
Views: 2047

Re: Reduce MAGI to capture full child tax credit?

If you don't have a pension or other source of income, you will want to fill the lower tax brackets, 0%, 10% and 15%, with traditional withdrawals. If you retire early, there may be a number of years that you can do this. Hard to beat paying 0% for Traditional contributions and then 0% on some with...
by rkhusky
Fri Nov 25, 2016 9:08 pm
Forum: Investing - Theory, News & General
Topic: What was your Asset Allocation before and after retirement?
Replies: 91
Views: 8033

Re: What was your Asset Aloocation before and after retirement?

You are saying that the back-testing shows a 100% chance of success for a 5% fixed dollar amount withdrawal from a 100% stock portfolio? For how long? If you put their entire portfolio into the savings account, would they still have a 100% chance of success? This is not exactly what I'm saying. Suc...
by rkhusky
Fri Nov 25, 2016 9:05 pm
Forum: Investing - Help with Personal Investments
Topic: Help with son's 2055 Target fund vs my construct
Replies: 15
Views: 959

Re: Help with son's 2055 Target fund vs my construct

Since bonds probably will not do well - at least in mid term - I would rather not include them. Since I do not have much faith in the rest of the world's abilities to manage debt, etc. I think a lower allocation is warranted. With an investing horizon of 30-40 years, why try to time the mid term? K...
by rkhusky
Wed Nov 23, 2016 8:35 pm
Forum: Investing - Help with Personal Investments
Topic: Reduce MAGI to capture full child tax credit?
Replies: 21
Views: 2047

Re: Reduce MAGI to capture full child tax credit?

Your spouse's contribution to an IRA should be deductible since the limit is $184,000. If you don't have a pension or other source of income, you will want to fill the lower tax brackets, 0%, 10% and 15%, with traditional withdrawals. If you retire early, there may be a number of years that you can ...
by rkhusky
Wed Nov 23, 2016 8:31 pm
Forum: Investing - Theory, News & General
Topic: Glide Paths : Help with Theory
Replies: 31
Views: 1703

Re: Glide Paths : Help with Theory

I like a glide path for behavioral reasons. I wanted a high stock allocation when I was far from retirement and I knew I wanted a 50/50 or so allocation near retirement. And I didn't want to have to make a large step down at a particular point in time, fearing that the stock market would just happen...
by rkhusky
Wed Nov 23, 2016 7:53 am
Forum: Investing - Theory, News & General
Topic: What was your Asset Allocation before and after retirement?
Replies: 91
Views: 8033

Re: What was your Asset Aloocation before and after retirement?

Shouldn't.. the back-testing based on 5% withdrawal rate is 5% of initial investment. So withdrawal is constant year-to-year. You are saying that the back-testing shows a 100% chance of success for a 5% fixed dollar amount withdrawal from a 100% stock portfolio? For how long? If you put their entir...
by rkhusky
Wed Nov 23, 2016 7:31 am
Forum: Personal Finance (Not Investing)
Topic: Federal Deferred Retirement - When to take
Replies: 11
Views: 903

Re: Federal Deferred Retirement - When to take

Boots B. wrote: (You get 10 percent additional for over 20 years)

Is this true? I thought you got 10% extra if you retire at 62 or later.
by rkhusky
Tue Nov 22, 2016 9:12 pm
Forum: Investing - Help with Personal Investments
Topic: Reduce MAGI to capture full child tax credit?
Replies: 21
Views: 2047

Re: Reduce MAGI to capture full child tax credit?

We are in the 25% federal tax bracket (plus 9% state). It's likely that we'll retire in this same bracket, but that we'll spend some time later in my career at 28%. Anyhow it makes it so that the Roth/traditional question is pretty neutral, as I see it, so I don't mind making contributions this yea...
by rkhusky
Tue Nov 22, 2016 9:05 pm
Forum: Investing - Theory, News & General
Topic: What was your Asset Allocation before and after retirement?
Replies: 91
Views: 8033

Re: What was your Asset Aloocation before and after retirement?

Hopefully they are short term bonds, because bonds can lose money too. And the stock market can take longer than a year to recover. Seems awfully risky to me. Suppose intermediate bonds drop 10% and stocks drop 30% and both don't recover for 5 years? Would that affect your parents' long term standar...
by rkhusky
Tue Nov 22, 2016 7:41 am
Forum: Personal Finance (Not Investing)
Topic: State tax situation if residing in WA and working remotely for MA-based employer
Replies: 9
Views: 921

Re: State tax situation if residing in WA and working remotely for MA-based employer

Look at example (5)(a)(1.2) in this State of Mass. Tax Guide: Example (5)(a)(1.2). A telecommuter works for a Massachusetts firm, mainly out of her home in Ohio. The telecommuter works a total of 240 days during the tax year, and is in Massachusetts on 60 of those days. Her salary is $120,000 per y...
by rkhusky
Mon Nov 21, 2016 2:22 pm
Forum: Investing - Help with Personal Investments
Topic: Trying to figure out the right blend of fixed-income investments
Replies: 4
Views: 504

Re: Trying to figure out the right blend of fixed-income investments

Which of your fixed income investments are in tax-advantaged accounts? Total Bond Fund would bring as much diversification as PIMCO Income. Are you saying that you prefer PIMCO's AA of 25% Gov't, 11% Corporate, 32% Mortgage, 22% Other and 9% Cash, along with the fact that it shorts some bond sectors...
by rkhusky
Mon Nov 21, 2016 12:31 pm
Forum: Investing - Help with Personal Investments
Topic: Rebalancing Help
Replies: 8
Views: 354

Re: Rebalancing Help

Somatic wrote:Every 2 weeks I add 2k - 4k. I would realistically like to rebalance every time I add new funds. I'm not too worried by being off target less than 10 - 15%.
Once your account balance gets large, you won't be able to completely rebalance with contributions.
by rkhusky
Mon Nov 21, 2016 12:26 pm
Forum: Investing - Help with Personal Investments
Topic: Rebalancing Help
Replies: 8
Views: 354

Re: Rebalancing Help

Thanks for the feedback. So if I sell and exchange the funds within Vanguard, I will not receive any fees? How do I know if I have the funds in a tax advantaged account. I'm trying to avoid taxes as well. Thanks. Tax advantaged accounts include 401K, 403B, IRA, 529, HSA, etc. The opposite is a taxa...
by rkhusky
Sun Nov 20, 2016 5:45 pm
Forum: Personal Finance (Not Investing)
Topic: Am I currently eligible to deduct traditional IRA contributions?
Replies: 2
Views: 237

Re: Am I currently eligible to deduct traditional IRA contributions?

There are other things that can reduce your AGI, like payroll deductions for insurance premiums and FSA contributions. You need to look at your pay stub and see what your taxable income is.
by rkhusky
Sun Nov 20, 2016 4:35 pm
Forum: Investing - Help with Personal Investments
Topic: Is it foolish to substitute a more aggressive fund in place of Vanguard Total Stock Market Index in a 3-fund portfolio?
Replies: 31
Views: 2614

Re: Is it foolish to substitute a more aggressive fund in place of Vanguard Total Stock Market Index in a 3-fund portfol

Purchasing value equities means buying low, beaten up, low price to book, underperforming businesses that have the potential to turnaround, when they do turnaround, the news gets around and in comes a flood of money to boost prices. Or those beat up companies could go bankrupt. Investing in value m...
by rkhusky
Sun Nov 20, 2016 8:15 am
Forum: Investing - Help with Personal Investments
Topic: New To Investing: Am I on the right path?
Replies: 24
Views: 1356

Re: New To Investing: Am I on the right path?

I agree with Duckie above on the AA. The standard advice for the 401K vs IRA decision is to contribute up to the match in the 401K, then contribute to IRA, then go back and max out the 401K. But since you have good choices in your 401K, those steps are flexible. The Roth vs. Traditional question dep...
by rkhusky
Sun Nov 20, 2016 8:05 am
Forum: Investing - Theory, News & General
Topic: Adding to Small Cap
Replies: 12
Views: 1412

Re: Adding to Small Cap

If an asset class hits a rebalance band, that means another in your AA must have also hit that band. If your AA is 50/30/20 (US/Int'l/Bond) with absolute 5% rebalancing bands, you could end up at 56/27/17, with only US hitting the upper limit and Int'l and Bond not hitting their lower limits. But I...
by rkhusky
Fri Nov 18, 2016 8:28 am
Forum: Investing - Help with Personal Investments
Topic: If you started from scratch, TODAY?
Replies: 31
Views: 4028

Re: If you started from scratch, TODAY?

With 15-20 years to go until retirement, I would choose 80/20 with a glide path to 50/50 in 15 years.
by rkhusky
Fri Nov 18, 2016 8:02 am
Forum: Investing - Help with Personal Investments
Topic: Fidelity Index Fund - need help!
Replies: 14
Views: 1104

Re: Fidelity Index Fund - need help!

If it wasn't an index fund, then one might wait, but since it is an index fund, I don't think there is a need to wait. That doesn't mean that I'm right about that. I was going through the same choice a few weeks ago. I actually called into speak with a Fiedilty broker about this. That person recomm...
by rkhusky
Fri Nov 18, 2016 7:52 am
Forum: Investing - Help with Personal Investments
Topic: New To Investing: Am I on the right path?
Replies: 24
Views: 1356

Re: New To Investing: Am I on the right path?

Do you expect your income to dramatically increase over the next 30 years? Or do you expect it to slowly increase? (i.e. are you a lawyer or doctor or engineer etc. in training?) Do you have good diversified low cost choices in your 401K? ( 500 Index at 0.035% is good, but not fully diversified. Fid...
by rkhusky
Thu Nov 17, 2016 12:13 pm
Forum: Investing - Help with Personal Investments
Topic: Rate my portfolio VTI 60%, VXUS 30%, BND 10%
Replies: 39
Views: 2809

Re: Rate my portfolio VTI 60%, VXUS 30%, BND 10%

I think your proposed asset allocation is perfectly sensible and well within the mainstream. There are some that advocate for no international and some that argue for market weight, which is closer to 50/50. Your 30% allocation is entirely reasonable. If one goes with no international, one has to be...
by rkhusky
Tue Nov 15, 2016 8:07 am
Forum: Investing - Help with Personal Investments
Topic: Portfolio return: very low. Any suggestions
Replies: 36
Views: 3774

Re: Portfolio return: very low. Any suggestions

My benchmark is the Vanguard Target Retirement funds. If I can't beat them, I might as well switch over so that Vanguard can do all the work. TR2035, which is 80/20, had a 1 year return of 3.44% and a 3 year return of 4.95%, as of 10/31/16 (Morningstar lists the YTD as 5.34%, 1-year as 5.74% and 3-y...
by rkhusky
Mon Nov 14, 2016 9:42 pm
Forum: Investing - Help with Personal Investments
Topic: Differences between two Index Funds
Replies: 10
Views: 1118

Re: Differences between two Index Funds

I am Military, United States Air Force Academy. Thats how I have disposable income as a college student. Im reading The Bogleheads' Guide to Investing currently, Im not sure what the difference is between taxable and tax-advantaged accounts are. But from what I can tell right now is to save for a T...

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