Search found 166 matches

by happenstance
Wed Sep 23, 2020 10:23 am
Forum: Personal Investments
Topic: TLH question
Replies: 22
Views: 1244

Re: TLH question

If I put more money into my taxable (purchase more VTSAX) today or tomorrow, and next week that market goes down, am I still allowed to TLH VTSAX in my taxable acct (even though I recently purchased it)? Yes, you’re allowed to do that. But if you then re-purchase a “substantially identical” securit...
by happenstance
Tue Sep 22, 2020 10:48 am
Forum: Personal Investments
Topic: TLH question
Replies: 22
Views: 1244

Re: TLH question

Great insights and your rule of thumb of harvesting losses >$500 is super helpful. When you say Vanguard's "Exchange Funds" option is atomic, is that meant in a good way? Yes, sorry for the confusion. “Atomic” in this sense means indivisible/irreducible: the buy and sell are part of the same operat...
by happenstance
Tue Sep 22, 2020 7:27 am
Forum: Investing - Theory, News & General
Topic: DFA Entering ETF space
Replies: 36
Views: 3365

Re: DFA Entering ETF space

There’s an updated N1-A form on the SEC’s website. There’s now tickers, but still no word on ER:

DFAU - Dimensional US Core Equity Market ETF
DFAI - Dimensional International Core Equity Market ETF
DFAE - Dimensional Emerging Core Equity Market ETF
by happenstance
Mon Sep 21, 2020 4:48 pm
Forum: Investing - Theory, News & General
Topic: REIT vs 60% small-cap value stocks and 40% high-yield bonds
Replies: 9
Views: 872

Re: REIT vs 60% small-cap value stocks and 40% high-yield bonds

I am just saying that you can apply a factor model to any number of assets to get the result you want, or put it another way the factor exposure you want to get. Don't believe it just because some expert said so, check it out for yourself using a tool like PV and you can see for yourself. Yes, it i...
by happenstance
Mon Sep 21, 2020 3:37 pm
Forum: Investing - Theory, News & General
Topic: charles schwab, fidelity and seven other banks and brokerages are planning to launch a new exchange
Replies: 9
Views: 2282

Re: charles schwab, fidelity and seven other banks and brokerages are planning to launch a new exchange

Would this in any way affect our existing equity holdings, both ETF and MFs, or even individual stocks? If the answer is yes, is there any recommendation on how to avoid it's negative impact? TIA. For ETFs and MFs, the securities backing the funds may in the future be traded on the new MEMX exchang...
by happenstance
Mon Sep 21, 2020 2:55 pm
Forum: Investing - Theory, News & General
Topic: charles schwab, fidelity and seven other banks and brokerages are planning to launch a new exchange
Replies: 9
Views: 2282

Re: charles schwab, fidelity and seven other banks and brokerages are planning to launch a new exchange

According to the WSJ, the exchanged opened today. They’re only handling seven stocks today, but they’ll extend to all publicly traded securities next week.
by happenstance
Mon Sep 21, 2020 12:28 pm
Forum: Investing - Theory, News & General
Topic: REIT vs 60% small-cap value stocks and 40% high-yield bonds
Replies: 9
Views: 872

Re: REIT vs 60% small-cap value stocks and 40% high-yield bonds

This reminds me of a 2017 paper "Are REITs a Distinct Asset Class?" . Their conclusion is largely the same: Taking direction from the regression results and attempting a long-only replication of REIT returns with small-value and equities and long-term corporate bonds produces a portfolio that comove...
by happenstance
Mon Sep 21, 2020 12:17 pm
Forum: Personal Investments
Topic: TLH question
Replies: 22
Views: 1244

Re: TLH question

1. You can look at VTI’s intraday movement to see how VTSAX will likely end. But really the best thing to do is TLH lots that have deeper losses (my rule of thumb is harvest losses >=$500) so that you don’t have to worry about small losses that could turn into small gains. TLHing single-day dips is ...
by happenstance
Tue Sep 15, 2020 8:03 pm
Forum: Personal Investments
Topic: Vanguard Total World vs. Vanguard Total Stock Market + Vanguard Total International
Replies: 11
Views: 1044

Re: Vanguard Total World vs. Vanguard Total Stock Market + Vanguard Total International

The advantages for VTWAX are that it automatically rebalances to the market cap weight without any work on your part, and it’s simpler (1 fund). Buying VTI and VXUS at world market cap weight (and, if you care, reinvesting dividends at new weighting) will track the same without any work. It's not s...
by happenstance
Tue Sep 15, 2020 4:21 pm
Forum: Personal Investments
Topic: Vanguard Total World vs. Vanguard Total Stock Market + Vanguard Total International
Replies: 11
Views: 1044

Re: Vanguard Total World vs. Vanguard Total Stock Market + Vanguard Total International

The advantages for VTWAX are that it automatically rebalances to the market cap weight without any work on your part, and it’s simpler (1 fund). The disadvantages are the slightly higher expense ratio, and you cannot tax-loss harvest between the U.S. and International components. Note that the VT (E...
by happenstance
Tue Sep 15, 2020 4:15 pm
Forum: Personal Investments
Topic: High income earner: What to do with an extra $50,000?
Replies: 4
Views: 905

Re: High income earner: What to do with an extra $50,000?

Good luck with your consulting gig! That sounds like a new and interesting opportunity. I make a lot of money; I've got an extra $50,000 I'm planning on investing in an SEP IRA (all of it), next year I expect to have an extra $50,000 to $150,000 of extra money; what do I do with all that money? 1. D...
by happenstance
Sun Sep 13, 2020 12:04 pm
Forum: Investing - Theory, News & General
Topic: For Small Value Tilters, Are the Latest Pricing Models Important?
Replies: 11
Views: 854

Re: For Small Value Tilters, Are the Latest Pricing Models Important?

I agree with nedsaid that the model improvements so far are really just tweaking. FF3 explains upwards of 90% of returns, and I understand that still holds even post-publication. But even DFA has evolved their approach from FF3 by including a negative momentum screen and positive profitability scree...
by happenstance
Sat Sep 12, 2020 11:34 pm
Forum: Personal Investments
Topic: Adjusting Asset Allocation- Frequency
Replies: 16
Views: 843

Re: Adjusting Asset Allocation- Frequency

Another option is to "soft-rebalance" every time you make new contributions: put the money towards whichever asset is under-performing. Re balance every month is a very tedious option. I personally don’t think so (though investing is somewhat of a hobby for me). You don’t do a full rebalance every ...
by happenstance
Sat Sep 12, 2020 10:39 pm
Forum: Personal Investments
Topic: Adjusting Asset Allocation- Frequency
Replies: 16
Views: 843

Re: Adjusting Asset Allocation- Frequency

What you’re asking about is called rebalancing . There is no right answer to how frequently and how much to rebalance. Vanguard wrote an excellent paper about the different strategies. A simple strategy is to pick a date every year to rebalance your positions back to your target asset allocation. In...
by happenstance
Thu Sep 10, 2020 4:51 pm
Forum: Investing - Theory, News & General
Topic: Why is it never a good time to buy LT Bonds (in recent history)?
Replies: 103
Views: 7003

Re: Why is it never a good time to buy LT Bonds (in recent history)?

However, over the past 15 years some of the cracks have started to show: it's no coincidence, IMHO, that the TDFs with best duration-matching properties (Dimensional Funds and State Street) are among the most recently designed TDF series. Can you elaborate on this? I was looking how Dimensional str...
by happenstance
Wed Sep 09, 2020 9:50 am
Forum: Personal Investments
Topic: What to do with a small portion of VGT
Replies: 14
Views: 914

Re: What to do with a small portion of VGT

Thank you all for your suggestions, Ive decided to keep it and bought some more shares, I believe it will compliment VTSAX, my primary stock fund nicely. I wouldn’t really say it complements it. 98% of VGT’s holdings are also in VTI/VTSAX, and the two had a correlation of 0.9 . This is really just ...
by happenstance
Tue Sep 08, 2020 10:59 pm
Forum: Personal Investments
Topic: What to do with a small portion of VGT
Replies: 14
Views: 914

Re: What to do with a small portion of VGT

geo5000 wrote: Tue Sep 08, 2020 10:18 am Thanks happenstance, 35% tax bracket.
I would definitely avoid the LTCG hit then.

As to buying more: Does this fit into your overall AA? Would you buy it unless you already owned it? If not, let it just sit there until you can unload it via harvesting losses or a drop in price.
by happenstance
Tue Sep 08, 2020 10:09 am
Forum: Personal Investments
Topic: What to do with a small portion of VGT
Replies: 14
Views: 914

Re: What to do with a small portion of VGT

Do any of your positions in taxable accounts have capital losses? Don’t just look at the overall gain/loss column but click into the detailed per-lot view and see if you have specific tax lots that are in the red. If you have any unrealized losses, you can sell those to realize the loss, offsetting ...
by happenstance
Mon Sep 07, 2020 11:44 am
Forum: Personal Investments
Topic: Two Fund Portfolio options in my DCP
Replies: 3
Views: 257

Re: Two Fund Portfolio options in my DCP

Good Labor Day to you as well. The Vanguard Institutional Index VINIX is the S&P 500 fund; it’s fine to use this in place of a Total Stock fund. The performance has been nearly identical in the past. I don’t think you can go wrong with any of your three options. Option 3 (Target Date 2025) would giv...
by happenstance
Sun Sep 06, 2020 2:51 pm
Forum: Personal Investments
Topic: Taxable brokerage Account
Replies: 5
Views: 714

Re: Taxable brokerage Account

1. Generally broad U.S. and international index funds are tax-efficient and can be held in taxable accounts. Municipal bonds, depending on your tax bracket, can be more tax efficient than taxable bonds. REITs generally should be avoided in taxable accounts because they are not tax efficient. 2. Yes,...
by happenstance
Sun Sep 06, 2020 1:55 pm
Forum: Personal Investments
Topic: Replicating Global Market Cap in 401k
Replies: 5
Views: 221

Re: Replicating Global Market Cap in 401k

In your IRA, I would recommend just holding VTWAX - Vanguard Total World Stock, which will maintain the global market cap weight for you. You’re right that international small caps are more expensive to get exposure to, though there are a number of decent funds to do so. I wouldn’t worry too much ab...
by happenstance
Sun Sep 06, 2020 1:15 pm
Forum: Personal Investments
Topic: Replicating Global Market Cap in 401k
Replies: 5
Views: 221

Re: Replicating Global Market Cap in 401k

From the wiki page , you can approximate the total stock market with 92% Russell 1000 and 8% Russell 2000, which is how the Russell 3000 universe is broken up between those two components. In 2018 , global market cap weighting was roughly 55% US / 45% international. That would give you an overall as...
by happenstance
Sun Sep 06, 2020 8:47 am
Forum: Personal Investments
Topic: 3 Fund Portfolio and rebalancing my 401K mess?
Replies: 10
Views: 982

Re: 3 Fund Portfolio and rebalancing my 401K mess?

Happenstance, Thank you for your response! Some followup info.. I'm 47 years old and will likely work until I have to retire at age 65.. So 18 years to go. I do have emergency cash or at least liquidity that I can get if I need, and it's in the 6 month range.. Maybe a little bit more actually. As f...
by happenstance
Sat Sep 05, 2020 11:00 pm
Forum: Personal Investments
Topic: Muni as part of FI
Replies: 8
Views: 832

Re: Muni as part of FI

No, BHV is not like PRVAX; it’s a closed-end fund (not an ETF) and appears to use leverage to be long-short. I would not use this. At Fidelity, it looks like UVABX (USAA Virginia Bond Fund Class A) is also no-fee and has higher-quality bonds, though it does have a higher ER (0.79%). There’s also the...
by happenstance
Sat Sep 05, 2020 10:29 pm
Forum: Personal Investments
Topic: Muni as part of FI
Replies: 8
Views: 832

Re: Muni as part of FI

One rule of thumb, and the one I’ve personally adopted, is no more than 50% of the bond allocation in munis, and no more than 50% of the muni bond portion in a single state (i.e. 25% of the total bond allocation). Others say that with AAA-quality muni bonds, you can go higher. PRVAX is only 9.5% AAA...
by happenstance
Sat Sep 05, 2020 10:22 pm
Forum: Personal Investments
Topic: Updated Portfolio Review
Replies: 10
Views: 769

Re: Updated Portfolio Review

To elaborate on what Duckie wrote about taxes: the annual distributions from funds (e.g. dividends) are untaxed in retirement accounts but are taxed in your taxable account. Your brokerage firm will provide an annual 1099-DIV with the income that needs to be reported on your tax return, which at you...
by happenstance
Sat Sep 05, 2020 6:19 pm
Forum: Personal Investments
Topic: 3 Fund Portfolio and rebalancing my 401K mess?
Replies: 10
Views: 982

Re: 3 Fund Portfolio and rebalancing my 401K mess?

Hi and welcome to the forum! Before you make any changes, you should figure out what you want your asset allocation to be. Specifically, you need to decide how much you want in U.S. stocks, international stocks, and bonds. See the wiki page on asset allocation for some background reading, but the Bo...
by happenstance
Sat Sep 05, 2020 6:00 pm
Forum: Personal Investments
Topic: What is the value of selling mutual fund before the price goes down?
Replies: 4
Views: 609

Re: What is the value of selling mutual fund before the price goes down?

The price you get from selling a mutual fund is the NAV at the end of the trading day. If you place an order to sell before 4pm on a day that the markets are open, you get the end-of-day price on that date. Otherwise, you get the price at the end of the next trading day. In your example, if you plac...
by happenstance
Sat Sep 05, 2020 5:54 pm
Forum: Investing - Theory, News & General
Topic: [SWSSX Schwab Small-Cap Index Fund® - Fund composition?]
Replies: 3
Views: 215

Re: [SWSSX Schwab Small-Cap Index Fund® - Fund composition?]

Alternatively, Morningstar and the "Market Cap" tab under "Style Measures." The definition of size varies depending on whose data you look at.
by happenstance
Sat Sep 05, 2020 5:52 pm
Forum: Personal Investments
Topic: Updated Portfolio Review
Replies: 10
Views: 769

Re: Updated Portfolio Review

Would it make sense to exit out of the MSFHX fund and roll that into the MITHX fund? And then open a taxable account with Vanguard and contribute to other stocks there? any recommendations to keep a decent Asset allocation between all of these account to achieve the three fund portfolio. Yes, that’...
by happenstance
Sat Sep 05, 2020 4:33 pm
Forum: Personal Investments
Topic: Updated Portfolio Review
Replies: 10
Views: 769

Re: Updated Portfolio Review

Hi! I think you’re doing great for your age—keep up the good work. Unfortunately your 401k choices are not great: very high expense ratios and some fairly non-diversified funds. You might check to see if your 401k has a "brokerage window" that would allow you to trade ETFs instead. Not all plans hav...
by happenstance
Thu Sep 03, 2020 3:42 pm
Forum: Personal Investments
Topic: Fumbx VS Fidelity Advisor Stable Value
Replies: 3
Views: 227

Re: Fumbx VS Fidelity Advisor Stable Value

My confusion is around what I made last month as true comparison : FUMBX - My returns were around 0.15 % On Fidelity Stable Value returns were around 1.5 % Does that seem right in terms of trends for future too in terms of returns difference ? Short-term treasury yields have fallen quite a bit, and...
by happenstance
Thu Sep 03, 2020 2:51 pm
Forum: Personal Investments
Topic: Fumbx VS Fidelity Advisor Stable Value
Replies: 3
Views: 227

Re: Fumbx VS Fidelity Advisor Stable Value

FUMBX (Fidelity Short-Term Treasury Bond Index Fund) is a short-term bond fund with an average duration of 2.67 years. This fund is not as risky as a stock fund or longer-duration bond funds, but if interest rates were to fall (as they have), the duration indicates it will take about 2.67 years to r...
by happenstance
Tue Sep 01, 2020 4:19 pm
Forum: Investing - Theory, News & General
Topic: 30 year horizon: S&P index vs. AGTHX
Replies: 34
Views: 5549

Re: 30 year horizon: S&P index vs. AGTHX

rascott wrote: Tue Sep 01, 2020 4:03 pm Since this post. AGTHX has beaten the "market" by about 1.2% CAGR.


Fortunately we were all warned.
And the Vanguard Growth Index fund (VIGAX) beat AGTHX by an additional 2 percentage points CAGR. Growth did well the past decade.
by happenstance
Tue Sep 01, 2020 4:10 pm
Forum: Personal Investments
Topic: Bond allocation
Replies: 10
Views: 1069

Re: Bond allocation

Most of the responses to the many posts like this imply that the OP either must keep their bond holdings as-is, or they will change their AA and buy more equities with what used to be bond funds. But I’d love to see more comments related to the risks of shifting bond funds, not to equities, but to ...
by happenstance
Tue Sep 01, 2020 8:02 am
Forum: Personal Investments
Topic: Bond allocation
Replies: 10
Views: 1069

Re: Bond allocation

Nothing has changed for us but I often hear that rules of the game has changed. Nobody knows the future, and so nobody knows the best asset allocation ex-ante is. These people are either trying to sell you investment products or write headlines to attract your attention for ad dollars. They always ...
by happenstance
Mon Aug 31, 2020 4:23 pm
Forum: Personal Investments
Topic: Bond allocation
Replies: 10
Views: 1069

Re: Bond allocation

Stay the course. It’s true that bond yields are low now, and they will likely stay low for some time in the future. Of course nobody knows for how long, so what’s the alternative? The general wisdom is that you should only change your asset allocation if your need, willingness, or ability to take ri...
by happenstance
Mon Aug 31, 2020 11:01 am
Forum: Personal Investments
Topic: Optimizing allocations for earlier retirement, handling small windfall
Replies: 12
Views: 758

Re: Optimizing allocations for earlier retirement, handling small windfall

Also plan how much you want allocated to international stocks and bonds. The wiki is a good place to start with both of those. Reading through that right now. This part is getting to be a bit above my head so I'll take a bit to digest this. There’s no objectively right answer, but for international...
by happenstance
Mon Aug 31, 2020 10:16 am
Forum: Personal Investments
Topic: Optimizing allocations for earlier retirement, handling small windfall
Replies: 12
Views: 758

Re: Optimizing allocations for earlier retirement, handling small windfall

I'd prefer a house in the 250-300k range, husband wants 350k. My estimate is going with a 350k house--175k down means we'd have ~45k cash left as an emergency fund, which would be about 6-8 months based on a hypothetical budget (different/less than what we spend now in a HCOL city). I think you're ...
by happenstance
Mon Aug 31, 2020 9:53 am
Forum: Personal Investments
Topic: FSKAX vs VTI
Replies: 15
Views: 1234

Re: FSKAX vs VTI

I think the behavioral advantage of automatic hands off contribution investing with FSKAX which is not available with ETF's will likely way, way exceed any de minimus advantage in taxes. Trying to understand here, do you mean FSKAX as mf can be invested fractional, i.e. if i only have 10$ i can inv...
by happenstance
Sun Aug 30, 2020 10:56 pm
Forum: Personal Investments
Topic: Optimizing allocations for earlier retirement, handling small windfall
Replies: 12
Views: 758

Re: Optimizing allocations for earlier retirement, handling small windfall

Hello and welcome to the forum! That is a lot of questions, but I’ll take a go at some of them. Cash: We think we will likely move out of state and buy a house in 2 years, and we'd like to put 50% down so that we can pay off the house before 50. We have both our E-fund and the full down payment sitt...
by happenstance
Sun Aug 30, 2020 10:17 pm
Forum: Personal Investments
Topic: FSKAX vs VTI
Replies: 15
Views: 1234

Re: FSKAX vs VTI

Turnover matters for mutual funds in so much as it can generate short- or long-term capital gains realized by the fund and passed on to you the investor. These distributions are in addition to the dividend income. The ETF structure lends itself to not shedding annual capital gains distributions, whi...
by happenstance
Sat Aug 29, 2020 10:03 pm
Forum: Personal Investments
Topic: Help reviewing investment portfolio
Replies: 6
Views: 640

Re: Help reviewing investment portfolio

pwill112, happenstance, LeeMKE, thank you for your inputs! Cash amount is large because we hadn't followed through with investments in a while. It is in a HYSA. I will pay down the mortgage and simplify my wife's holdings to SCHB. VBISX is the only other bond option in hers (other than VCLT). I wil...
by happenstance
Sat Aug 29, 2020 5:53 pm
Forum: Personal Investments
Topic: Help reviewing investment portfolio
Replies: 6
Views: 640

Re: Help reviewing investment portfolio

Are you deliberately trying to tilt your portfolio? Some of the funds have significant overlap: Her 401k SCHG = Schwab Large Cap Growth SCHB = Schwab U.S. Broad (effectively total stock) SCHM = Schwab Mid Cap Blend SCHA = Schwab Small Cap Blend HSA VTSAX = Vanguard Total Stock VFIAX = Vanguard S&P 5...
by happenstance
Thu Aug 27, 2020 9:29 am
Forum: Personal Investments
Topic: Understanding makeup of an index funds Equity Styles
Replies: 3
Views: 232

Re: Understanding makeup of an index funds Equity Styles

You can use Morningstar’s portfolio page , click on the “Market Cap” button under the “Style Measures” heading, where you will see the % allocation to each category (though they further break it out with Giant and Micro). Morningstar also used to have a free feature called Instant X-Ray , where you ...
by happenstance
Wed Aug 26, 2020 3:07 pm
Forum: Personal Investments
Topic: Changing allocation through dividend reinvestment in taxable account
Replies: 2
Views: 260

Re: Changing allocation through dividend reinvestment in taxable account

This will work just fine. Doing this is sometimes called “soft rebalancing” because you’re adjusting positions to match your target AA without selling anything.

Every quarter I take all my taxable account distributions in cash and reinvest them in the most-down asset(s).
by happenstance
Wed Aug 26, 2020 2:53 pm
Forum: Personal Investments
Topic: Russell 3000 Stock Index - Risk
Replies: 10
Views: 824

Re: Russell 3000 Stock Index - Risk

The Russell 3000 is a total stock market fund. See the wiki for differences in indexing methodology.
by happenstance
Wed Aug 26, 2020 2:50 pm
Forum: Personal Investments
Topic: Consolidation of 401k plans
Replies: 14
Views: 934

Re: Consolidation of 401k plans

I've updated original post with portfolio info. Sorry for that oversight. Hope this helps paint a clearer picture. Thanks for updating. Can you also list all the funds you have available to choose from (with the expense ratios) in your current 401k? The "Merrill Lynch RetirementDateFund 2040 (RDF20...
by happenstance
Wed Aug 26, 2020 8:47 am
Forum: Personal Investments
Topic: Consolidation of 401k plans
Replies: 14
Views: 934

Re: Consolidation of 401k plans

Thanks for the responses. To clarify, I wasn't exactly asking about moving the old 401k's and Roth IRA into my current 401k. Actually, what I was thinking of doing was moving all the old ones into a better vehicle, such as the Vanguard fund I mentioned, and leaving my current 401k as-is. Is that po...
by happenstance
Tue Aug 25, 2020 11:11 pm
Forum: Personal Investments
Topic: Consolidation of 401k plans
Replies: 14
Views: 934

Re: Consolidation of 401k plans

Hello and welcome to the forum! The Vanguard Total Stock Market Index fund is a fantastic fund, and you should definitely own some of it. But you need to come up with an asset allocation to answer questions like, do you want to hold international stocks too (I recommend yes)? Should you hold bonds (...