Search found 98 matches

by robertmcd
Tue Oct 03, 2017 10:14 pm
Forum: Investing - Help with Personal Investments
Topic: Help with private investment opportunity
Replies: 47
Views: 2777

Re: Help with private investment opportunity

I see no problem in investing in something private with less than a 20x return in 3 yrs. I feel as though all of this really comes down to one thing, how risky is this investment as a company, and will it go to zero (lots of scenarios where this could occur but none seem likely), and will it be more...
by robertmcd
Tue Oct 03, 2017 9:34 pm
Forum: Investing - Help with Personal Investments
Topic: Help with private investment opportunity
Replies: 47
Views: 2777

Re: Help with private investment opportunity

I guess I got the responses that I expected from this thread. All the research that I have done on this site has made me dislike private equity, especially when I read articles by swedroe on how it performs when risk adjusted compared to the s&p 500, let alone small cap value. Granted that is under ...
by robertmcd
Tue Oct 03, 2017 5:00 pm
Forum: Investing - Help with Personal Investments
Topic: Help with private investment opportunity
Replies: 47
Views: 2777

Re: Help with private investment opportunity

We are longtime friends with one of the main founders, and he is doing it as a favor.
by robertmcd
Tue Oct 03, 2017 3:13 pm
Forum: Investing - Help with Personal Investments
Topic: Help with private investment opportunity
Replies: 47
Views: 2777

Re: Help with private investment opportunity

Thank you tyrion. That is the point I am trying to find, and it is the million dollar question when it comes to asset allocation. It is similar to my decision to not drop 200k into stocks right away in order to try and earn a 3% real return. I basically decided that I could lose 50k and not want to ...
by robertmcd
Tue Oct 03, 2017 2:34 pm
Forum: Investing - Help with Personal Investments
Topic: Help with private investment opportunity
Replies: 47
Views: 2777

Re: Help with private investment opportunity

I was more looking towards advice from bogleheads on times they invested in a private startup or in their own company when they had the ability to take the risk, and what % of their net worth they put into their company. I am a major skeptic when it comes to VC or angel investing, but this company i...
by robertmcd
Tue Oct 03, 2017 1:55 pm
Forum: Investing - Help with Personal Investments
Topic: Help with private investment opportunity
Replies: 47
Views: 2777

Help with private investment opportunity

Okay here is where I am at: Age 23 60k income (could increase to 100k-120k if I can move jobs, the market was/is tough since I graduated, but I've been interviewing and have come close to landing a better job) 97k in taxable (stock funds) 13k in roth ira (stock funds) 87k in cds (for future downpaym...
by robertmcd
Wed Aug 23, 2017 9:31 pm
Forum: Investing - Help with Personal Investments
Topic: Stocks On Sale - What do you buy?
Replies: 64
Views: 6455

Re: Stocks On Sale - What do you buy?

TSM is not more value or more growth. Exactly 0 exposure to either. It is the most diverse/efficient way to get a beta exposure of exactly 1, meaning it moves exactly with the market. Because it is the market. Back to the original post. When stuff tanks you should buy to rebalance back to whatever y...
by robertmcd
Wed Aug 23, 2017 2:33 pm
Forum: Investing - Theory, News & General
Topic: AQR seeks to offer ETFs
Replies: 5
Views: 616

Re: AQR seeks to offer ETFs

Not gonna lie I'm pretty excited about this. If they do it right they could offer the best multi factor etfs, for example they calculate the value, momentum, and quality characteristics daily vs quarterly/annually like some other funds.
by robertmcd
Wed Aug 23, 2017 2:02 pm
Forum: Personal Consumer Issues
Topic: Credit Card for Student with no credit history
Replies: 9
Views: 654

Re: Credit Card for Student with no credit history

Get the discover it card. They are very generous with approvals as well as credit limit increases and it earns 2% on everything/10% on rotating categories the first year. Also lets you see your fico score.
by robertmcd
Tue Aug 22, 2017 12:57 pm
Forum: Investing - Help with Personal Investments
Topic: 29 Years Old: Am I Too Conservative
Replies: 15
Views: 1592

Re: 29 Years Old: Am I Too Conservative

Since you have 15 months cash on hand already. I would get a little more aggressive at least with the 105k you have in short term treasuries in taxable. I would look at shifting that towards some higher yielding fixed income such as intermediate term treasuries or paying off the higher interest mort...
by robertmcd
Tue Aug 22, 2017 12:30 pm
Forum: Investing - Help with Personal Investments
Topic: Long-term Strategy – Mega backdoor ROTH and 529
Replies: 9
Views: 888

Re: Long-term Strategy – Mega backdoor ROTH and 529

I would stick with maxing out the mega backdoor roth, in addition to a regular roth, then going to taxable. By the time your kids go to college you could end up with a huge amount in the 529 that you can't use for education expenses. A trad 401k, large roth ira, and large taxable savings gives you s...
by robertmcd
Fri Aug 18, 2017 2:21 pm
Forum: Investing - Help with Personal Investments
Topic: Company switching 401k funds. VTTSX vs VILVX
Replies: 3
Views: 288

Re: Company switching 401k funds. VTTSX vs VILVX

No difference in fund construction. Your plan must have reached enough assets to qualify for the institutional shares which vanguard charges a lower expense ratio for. That's good news for you, same fund with lower expenses.
by robertmcd
Mon Jul 31, 2017 4:40 pm
Forum: Investing - Theory, News & General
Topic: A Secret of the Index Fund’s Success?
Replies: 25
Views: 3546

Re: A Secret of the Index Fund’s Success?

Indexing works because it is cheap. I have also opined that well constructed indexes screen out the truly horrible "lottery stocks" that Larry Swedroe talks about. I call these the "anti-factors". If you can just screen out the "anti-factors", your performance will be good and the well constructed ...
by robertmcd
Fri Jul 07, 2017 5:26 pm
Forum: Investing - Theory, News & General
Topic: My Favorite Alternative Funds
Replies: 185
Views: 22625

Re: My Favorite Alternative Funds

The "advisor" I would assume everyone on this forum is using for access to AQR, DFA, and Stone Ridge is FPL capital management. It is 1k a year for their most basic level of services, but includes everything an individual investor looking to invest in these funds would need.
by robertmcd
Fri Jun 23, 2017 1:43 pm
Forum: Investing - Theory, News & General
Topic: Ultimate Buy and Hold - 8 slices vs 4
Replies: 719
Views: 306944

Re: Ultimate Buy and Hold - 8 slices vs 4

Just as an FYI about EFV's supposedly high ER, I have heard that it makes quite a bit from securities lending revenue, even though ishares only gives back 75% to fund holders. Someone else can chime in about the true cost after securities lending.
by robertmcd
Wed Jun 21, 2017 1:33 pm
Forum: Investing - Help with Personal Investments
Topic: Is a Total Stock Market Index enough...
Replies: 23
Views: 3681

Re: Is a Total Stock Market Index enough...

There are dozens of combos like what nura posted that have outperformed TSM over 5,10,15,20,25,30 yr periods, etc. The problem is whether you can stick to your plan when it is underperforming the market. Look at vanguard's small cap value fund YTD returns vs. vanguard total stock market. Would you b...
by robertmcd
Tue Jun 20, 2017 9:44 am
Forum: Investing - Help with Personal Investments
Topic: Ally Bank No penalty CD for parking cash, is there a catch?
Replies: 37
Views: 8516

Re: Ally Bank No penalty CD for parking cash, is there a catch?

Do I need to contact them to get my rate bumped since I am in the 10 day window?
by robertmcd
Tue Jun 20, 2017 9:40 am
Forum: Investing - Help with Personal Investments
Topic: Does a tax managed fund belong in a roth acct
Replies: 8
Views: 928

Re: Does a tax managed fund belong in a roth acct

No, tax managed funds seek to minimize capital gains and/or dividends, both of which have no tax cost in an IRA. Especially do not use it if if contains municipal bonds.
by robertmcd
Tue Jun 20, 2017 9:14 am
Forum: Personal Finance (Not Investing)
Topic: Ally no penalty 11 month CD rate increased to 1.50% this morning
Replies: 75
Views: 11003

Re: Ally no penalty 11 month CD rate increased to 1.50% this morning

Is it possible to continue to add funds to the original CD over time?
by robertmcd
Mon Jun 05, 2017 2:16 pm
Forum: Investing - Theory, News & General
Topic: S&P 500 vs TSM for Small cap value tilt
Replies: 40
Views: 3420

Re: S&P 500 vs TSM for Small cap value tilt

So the CRSP and S&P total market indices do not screen to eliminate the low profitability small cap growth "black hole" stocks, but their respective value and growth funds do? What I am getting at is that I am wondering if the blend indices are simply based on market cap alone. For example then it c...
by robertmcd
Wed May 24, 2017 5:07 pm
Forum: Investing - Help with Personal Investments
Topic: VTSMX vs Schwab Total Stock Market Index Fund
Replies: 29
Views: 4025

Re: VTSMX vs Schwab Total Stock Market Index Fund

I would consider Vanguard's to be better for a few reasons: I am more confident that vanguard will hold the ER at .04 or even lower it over the next 30 years than schwab. Therefore if I have capital gains and I am locked in for the rest of my life I would rather be at vanguard than schwab. Vanguard'...
by robertmcd
Tue May 16, 2017 2:32 pm
Forum: Investing - Help with Personal Investments
Topic: Small Cap + Emerging Market Fund
Replies: 5
Views: 523

Re: Small Cap + Emerging Market Fund

EWX is a good emerging markets small cap fund. High ER but the securities lending revenue brings it down quite a bit.
by robertmcd
Fri May 12, 2017 9:08 am
Forum: Investing - Theory, News & General
Topic: What are the benefits of turning-off dividend reinvestment (and capital gains too)?
Replies: 15
Views: 2218

Re: What are the benefits of turning-off dividend reinvestment (and capital gains too)?

Using dividends to rebalance into what you are currently underweight in

When selling shares, able to sell the specific lots that have the smallest amount of gains. Or sell the shares that are at a loss to tax loss harvest.
by robertmcd
Thu May 11, 2017 10:48 am
Forum: Investing - Help with Personal Investments
Topic: Objectively critique an AXA recommended portfolio.
Replies: 16
Views: 1199

Re: Objectively critique an AXA recommended portfolio.

I cannot even objectively critique this portfolio. The surrender fees alone tell the whole story about AXA. If one is willing to pay for an advisor there are some great options out there. Buckingham asset management or an advisor that is part of the BAM alliance, evanson asset management, cardiff pa...
by robertmcd
Wed May 10, 2017 12:58 pm
Forum: Investing - Help with Personal Investments
Topic: Best TDA ETF to replicate Total International Stock Fund
Replies: 9
Views: 634

Re: Best TDA ETF to replicate Total International Stock Fund

I checked and it looks like it is not on the list. In that case use approx 80% VEA and 20% VWO. Look at the emerging markets percentage in total international to rebalance according to market weight.
by robertmcd
Wed May 10, 2017 12:55 pm
Forum: Investing - Help with Personal Investments
Topic: Best TDA ETF to replicate Total International Stock Fund
Replies: 9
Views: 634

Re: Best TDA ETF to replicate Total International Stock Fund

Is VXUS not available at TD? It's the etf share class of total international stock.
by robertmcd
Wed May 10, 2017 11:48 am
Forum: Investing - Help with Personal Investments
Topic: Intermediate-Term Treasury vs Intermediate-Term Government ?
Replies: 7
Views: 1190

Re: Intermediate-Term Treasury vs Intermediate-Term Government ?

I would recommend the intermediate term treasury fund if you can meet the 50k minimum for admiral shares. I believe bond funds can benefit from active management, and I really like vanguard's low cost active bond funds. I would also consider buying 5-7 yr brokered cd's if liquidity is not an issue. ...
by robertmcd
Tue May 09, 2017 12:09 pm
Forum: Investing - Help with Personal Investments
Topic: Where to park my fat stacks [money]?
Replies: 20
Views: 2761

Re: Where to park my fat stacks [money]?

I would definitely consider using vanguard for their excellent fixed income offerings in addition to tax efficient mutual funds. I would go with: 30% Total Stock Market and Total International split up at market weight (to rebalance I just glance at what % US the VT Vanguard total world stock curren...
by robertmcd
Wed Apr 19, 2017 9:07 am
Forum: Investing - Help with Personal Investments
Topic: I bonds May 2017
Replies: 66
Views: 10539

I bonds May 2017

So what is the current state of I bonds right now? Should I wait to buy my $10,000 in May? I have never used them before but I am currently putting away funds in CDs for a house downpayment in the next 2-7 years and I am wondering if they are a good deal.
by robertmcd
Mon Apr 17, 2017 3:19 pm
Forum: Personal Finance (Not Investing)
Topic: Capital One 360 $200 bonus (and now $300 checking bonus)
Replies: 217
Views: 28669

Re: Capital One 360 $200 bonus

If I want to close my account after I get the bonus, how do I get my 1099 from them next year for taxes?
by robertmcd
Thu Mar 23, 2017 1:03 pm
Forum: Investing - Theory, News & General
Topic: Blog on emerging Markets, and investors underweighting them
Replies: 103
Views: 12817

Re: Blog on emerging Markets, and investors underweighting them

I know it has not necessarily given the best returns over the past 2 years , but in looking at its performance in recent history vs other emerging markets funds, I think it is the best choice vs. EMV outside of DFA. It also has a low ER and reasonable spreads
by robertmcd
Thu Mar 23, 2017 9:30 am
Forum: Investing - Help with Personal Investments
Topic: International Allocation
Replies: 16
Views: 1776

Re: International Allocation

I think right now at current valuations international diversification is very smart. I think anywhere from 40-60% international stock makes sense for a young investor. I can understand for near retirees that a tilt towards international could be a scary proposition. I am currently matched up my US s...
by robertmcd
Thu Mar 23, 2017 9:22 am
Forum: Investing - Theory, News & General
Topic: Why buy short-term bond funds when you can get 1% in savings acct?
Replies: 29
Views: 3893

Re: Why buy short-term bond funds when you can get 1% in savings acct?

I personally do not think there is a good reason to buy a short term bond fund, especially a treasury fund. The yield vs duration of a short term treasury fund is not near as good of a deal as a savings account with 0 duration and 1-1.25% yield. I do think 1-3 year non callable investment grade corp...
by robertmcd
Wed Mar 22, 2017 4:03 pm
Forum: Investing - Theory, News & General
Topic: Blog on emerging Markets, and investors underweighting them
Replies: 103
Views: 12817

Re: Blog on emerging Markets, and investors underweighting them

In Larry's book he recommended FNDE for Emerging Markets value. Looking at recent performance it has done very well. It has little in the way of small /mid caps though. I think a good supplement to it would be VSS or EWX. Some combos I like for international exposure: My preferred combination EFV de...
by robertmcd
Tue Mar 21, 2017 4:02 pm
Forum: Personal Finance (Not Investing)
Topic: Capital One 360 $200 bonus (and now $300 checking bonus)
Replies: 217
Views: 28669

Re: Capital One 360 $200 bonus

Just funded this. I would also like to know how long I need to keep it there before moving it back to ally?
by robertmcd
Mon Mar 20, 2017 3:22 pm
Forum: Investing - Help with Personal Investments
Topic: Short Vs. Intermediate Corp. Bonds
Replies: 6
Views: 844

Re: Short Vs. Intermediate Corp. Bonds

From what I have read from Larry Swedroe, there is not a good reason to use corporate bonds at all when you look at the risk/return tradeoff of them when implemented in an equity heavy portfolio. There risk shows up at the worst time, when stocks are doing poorly. As opposed to treasuries which bene...
by robertmcd
Thu Mar 16, 2017 2:48 pm
Forum: Investing - Help with Personal Investments
Topic: ETF advice for retirement portfolio
Replies: 7
Views: 585

Re: ETF advice for retirement portfolio

Following up what livesoft said, I would start out with a three fund portfolio using vanguard etfs (VTI, VXUS, and BND). I would not recommend implementing a factor based investing plan (tilting, diversifying across asset classes, increasing efficiency, whatever you want to call it) until you have d...
by robertmcd
Thu Mar 16, 2017 9:51 am
Forum: Investing - Help with Personal Investments
Topic: Vanguard for Short Term (3-5 yrs) Savings?
Replies: 12
Views: 1367

Re: Vanguard for Short Term (3-5 yrs) Savings?

Welcome to the forum. For money earmarked for less than 5 years, you cannot beat the principle protection and return of FDIC insured CD's. Capital One has a 2.30% 5 year CD with a 6 month early withdrawal penalty. Andrews FCU had a 7 yr 3.00% CD with a 6 month EWP that was just discontinued but they...
by robertmcd
Wed Mar 15, 2017 3:13 pm
Forum: Investing - Help with Personal Investments
Topic: 3-fund portfolio with less downside risk
Replies: 5
Views: 932

Re: 3-fund portfolio with less downside risk

If you want to maximize returns while minimizing downside risk (if you are willing to put your faith in backtesting and stay the course) you should read larry swedroe's book on reducing the risks of black swans. Something like 30% equities in small cap value, international small cap value, and emerg...
by robertmcd
Fri Mar 10, 2017 3:47 pm
Forum: Investing - Help with Personal Investments
Topic: New Investor Wanting a Tax-Efficient Approach
Replies: 5
Views: 455

Re: New Investor Wanting a Tax-Efficient Approach

I would use the vanguard total stock market index for your roth over VFINX (TSM is sort of a free lunch over s&p 500 when it comes to efficiency and diversification). For the taxable account at schwab I would use the ETFs for greater tax efficiency. Unfortunately at schwab, the broad market etf ...
by robertmcd
Fri Mar 10, 2017 12:14 pm
Forum: Investing - Help with Personal Investments
Topic: 28yo, New Millionaire, Advice on Wealth Management
Replies: 64
Views: 7967

Re: 28yo, New Millionaire, Advice on Wealth Management

Most people who are multi millionaires are paying absurd fees to some advisor who hangs out at the same country club. I would say about 99% of financial/investment advisors have awful performance after their fees. Look at some of the recommendations on this site. I would recommend a Buckingham asset...
by robertmcd
Fri Mar 10, 2017 10:22 am
Forum: Investing - Theory, News & General
Topic: On Buying Used Cars and Using a Financial Advisor
Replies: 51
Views: 4205

Re: On Buying Used Cars and Using a Financial Advisor

FPL capital will give you DFA and AQR access for 1k a year, you can manage all the investments yourself through their institutional platform. For large portfolios this can be a very low added expense.
by robertmcd
Thu Mar 09, 2017 10:08 am
Forum: Investing - Help with Personal Investments
Topic: Looking for a riskier / alternative ETF for portfolio part
Replies: 6
Views: 552

Re: Looking for a riskier / alternative ETF for portfolio part

Adding 10% to a small cap value ETF would be a great way to increase your expected return and could also make your portfolio more efficient (higher Sharpe/ lower standard deviation). Keep in mind small cap value has had the best recent return of almost any asset class, and understand that this strat...
by robertmcd
Tue Mar 07, 2017 10:42 am
Forum: Investing - Help with Personal Investments
Topic: Schwab 3-fund vs Target Date vs Intelligent Portfolio
Replies: 21
Views: 4718

Re: Schwab 3-fund vs Target Date vs Intelligent Portfolio

You won't have to pay for schwab ETF trades if you are using schwab. I would use the mutual funds in tax advantaged accounts so you can buy in exact dollar amounts and the ETFs for taxable accounts. It is probably already too late for this, but for those who want a three fund portfolio, I do not thi...
by robertmcd
Tue Feb 21, 2017 9:12 am
Forum: Investing - Help with Personal Investments
Topic: Transfer more than 10k from chase to ally
Replies: 3
Views: 580

Transfer more than 10k from chase to ally

I am trying to transfer more than 10k from chase savings to my ally savings account. The chase limit is 10k, but I was wondering if I could initiate the transfer from ally to get around this. I am concerned that Chase will deny the transaction, as they denied my initial transactions of 10k and 5k wh...
by robertmcd
Thu Feb 09, 2017 10:02 am
Forum: Investing - Help with Personal Investments
Topic: VTI and VXUS: Surprised by percentage of non-qualified dividends
Replies: 2
Views: 656

Re: VTI and VXUS: Surprised by percentage of non-qualified dividends

Funds can classify 100% of dividends as qualified if they distribute at least 95% qualified dividends (basically they are allowed to round up). So in prior years VTI has distributed 95.5 or 96% qualified dividends for example, but this time they were just under that threshold.
by robertmcd
Wed Feb 08, 2017 12:01 pm
Forum: Investing - Theory, News & General
Topic: Multifactor Funds Use
Replies: 13
Views: 1424

Re: Multifactor Funds Use

Thanks theoretical, I was using IJJ and IVE in that ratio, but did not start it in Jan 2006. So it looks like one could increase the IJS % to get closer to the target loadings.
by robertmcd
Wed Feb 08, 2017 11:59 am
Forum: Investing - Theory, News & General
Topic: Multifactor Funds Use
Replies: 13
Views: 1424

Re: Multifactor Funds Use

Yes MTUM is a good option for momentum, and it has 129% turnover. I just don't have confidence in my ability to stick with this fund and implement it in my portfolio without too much doubt in what I am doing. With market, size, and value, you are already covering 90% of what drives investment return...
by robertmcd
Wed Feb 08, 2017 11:39 am
Forum: Investing - Theory, News & General
Topic: Multifactor Funds Use
Replies: 13
Views: 1424

Re: Multifactor Funds Use

Yes that is correct, and could be a very good strategy. But one has to determine if it would be better to simply to get more size and value exposure by adding more SCV to ones large cap blend to achieve their desired factor loadings. iShares multifactor US large cap has a .25% expense ratio, 45% tur...
by robertmcd
Tue Feb 07, 2017 8:50 pm
Forum: Investing - Theory, News & General
Topic: Multifactor Funds Use
Replies: 13
Views: 1424

Re: Multifactor Funds Use

And as a better answer to your question. If you use any factor loading fund (multifactor or value or size) in combination with a fund with a neutral factor loading, you are halving your factor exposure. Say your multifactor fund has a value loading of .2, if you were to combine it with a market cap ...