Search found 99 matches

by happenstance
Mon Dec 02, 2019 10:48 am
Forum: Investing - Theory, News & General
Topic: SWVXX vs VUSXX
Replies: 4
Views: 473

Re: SWVXX vs VUSXX

SWVXX is more similar to Vanguard's Prime Money Market (VMMXX). At Schwab, the rough equivalent to VUSXX is Schwab U.S. Treasury Money Fund (SNSXX) . Note that the yields on Schwab's money market funds are lower than Vanguard's due to Schwab having higher expense ratios. As to risk, I agree with the...
by happenstance
Sat Oct 26, 2019 12:52 pm
Forum: Investing - Theory, News & General
Topic: Which brokerage app allows specific ID sales?
Replies: 13
Views: 951

Re: Which brokerage app allows specific ID sales?

I checked Schwab, and you can do Spec ID sales from the mobile app (as well as the website, of course). In the app, you just have to tap through the "Cost Basis Method" on the order screen. Are you referring to stocks or mutual funds? Schwab does not allow you to identify specific ID of mutual fund...
by happenstance
Fri Oct 25, 2019 7:23 am
Forum: Investing - Theory, News & General
Topic: Which brokerage app allows specific ID sales?
Replies: 13
Views: 951

Re: Which brokerage app allows specific ID sales?

I checked Schwab, and you can do Spec ID sales from the mobile app (as well as the website, of course). In the app, you just have to tap through the "Cost Basis Method" on the order screen.
by happenstance
Mon Oct 07, 2019 8:08 pm
Forum: Investing - Theory, News & General
Topic: Fama French: momentum lacks theoretical motivation
Replies: 27
Views: 2013

Re: Fama French: momentum lacks theoretical motivation

Link to the full paper, and the quote is from page 7: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2668236. I tried reading the paper, but it's a bit over my head (comparing models using statistical tests), but the full quote is: Thorny issues arise for factors that have no theoretical motiva...
by happenstance
Tue Jul 23, 2019 11:08 am
Forum: Investing - Theory, News & General
Topic: ETF "Tax Efficiency" Quantified
Replies: 57
Views: 3463

Re: ETF "Tax Efficiency" Quantified

2) The taxes definitely do not go away. They are simply deferred for the ETF. Remember, the mutual fund capital gains distributions are reinvested into the fund after realization, which results in a stepped up cost basis for the investor Nope. A capital gains distribution results when a fund sells ...
by happenstance
Tue Jul 23, 2019 7:49 am
Forum: Investing - Theory, News & General
Topic: ETF "Tax Efficiency" Quantified
Replies: 57
Views: 3463

Re: ETF "Tax Efficiency" Quantified

2) The taxes definitely do not go away. They are simply deferred for the ETF. Remember, the mutual fund capital gains distributions are reinvested into the fund after realization, which results in a stepped up cost basis for the investor Nope. A capital gains distribution results when a fund sells ...
by happenstance
Mon Jul 22, 2019 10:42 pm
Forum: Investing - Theory, News & General
Topic: ETF "Tax Efficiency" Quantified
Replies: 57
Views: 3463

Re: ETF "Tax Efficiency" Quantified

1) I am comparing Schwab's total market mutual fund to Schwab's total market ETF. Same company, same index. Is $10,000 minuscule? Haha, we'll have to agree to disagree on that one ;-) This is not correct. One fund tracks "Dow Jones U.S. Total Stock Market Index" and the other tracks "Dow Jones U.S....
by happenstance
Sun Mar 31, 2019 7:29 pm
Forum: Personal Investments
Topic: Recent Inheritance - Same investment strategy
Replies: 16
Views: 1494

Re: Recent Inheritance - Same investment strategy

Welcome to the forum! It sounds like you already are contributing to your tax advantaged accounts (are you also doing annual Roth IRA contributions?), have an emergency fund, and have chosen an asset allocation, so well done so far. The size of your portfolio does not have alter your asset allocatio...
by happenstance
Fri Mar 29, 2019 8:27 am
Forum: Personal Investments
Topic: Starting taxable 3 fund portfolio
Replies: 15
Views: 1979

Re: Starting taxable 3 fund portfolio

Thanks again for the info. Regarding the bonds and stocks in tax advantage wanted to check my understanding: Upon draw down in retirement: 401k - every dollar is taxable as ordinary income Backdoor roth - nothing is taxed Taxable - only profits are taxed at capital gains rates (other than dividends...
by happenstance
Tue Mar 26, 2019 6:12 pm
Forum: Personal Investments
Topic: tracking/reporting cost basis (taxable account) question
Replies: 4
Views: 283

Re: tracking/reporting cost basis (taxable account) question

1. Basically yes, though it will depend on what the broker specifies on the 1099-B that you will receive for those transactions. For long-term sales, the 1099-B will likely say "report on Form 8949, Part II" with either "Box D checked" (basis reported to the IRS) or "Box E checked" (basis NOT report...
by happenstance
Sat Mar 23, 2019 2:11 pm
Forum: Personal Investments
Topic: Starting taxable 3 fund portfolio
Replies: 15
Views: 1979

Re: Starting taxable 3 fund portfolio

and in the backdoor, since tax advantaged, make it easy and stick again with VFIFX (2050)? Yes, that would be fine. Generally it's recommended to only put stocks and not bonds in the Roth, because stocks benefit more from the tax-free growth. But the 2050 fund being 90% stocks, I think the simplici...
by happenstance
Sat Mar 23, 2019 1:43 pm
Forum: Personal Investments
Topic: Starting taxable 3 fund portfolio
Replies: 15
Views: 1979

Re: Starting taxable 3 fund portfolio

So as I see it, I could "recreate" VTRLX (without institutional) by using : VTSAX - total stock admiral 60% VTIAX - international stock admiral 30% VWIUX or VTEAX - muni for fed tax exempt (obviously a slight departure from VTRLX) 10% Giving me the 90 -10 over both account locations for now. Is thi...
by happenstance
Sat Mar 23, 2019 11:35 am
Forum: Personal Investments
Topic: Starting taxable 3 fund portfolio
Replies: 15
Views: 1979

Re: Starting taxable 3 fund portfolio

Right, in a taxable account, a national intermediate-term muni bond fund like VWIUX or VTEAX would be a fine alternative to Total Bond Market (VBTLX). I agree about keeping the 403(b) all in VTRLX. For the taxable account, you do give up a little simplicity for greater tax efficiency with a three-fu...
by happenstance
Sat Mar 23, 2019 10:48 am
Forum: Personal Investments
Topic: Starting taxable 3 fund portfolio
Replies: 15
Views: 1979

Re: Starting taxable 3 fund portfolio

Great job paying off your debt and maxing out your tax-deferred accounts. For those that don't have the ticker memorized, VTRLX is Target Retirement 2050 Fund. Since you said you're in the highest tax bracket, you probably are both ineligible to do direct Roth IRA contributions. Do you do the backdo...
by happenstance
Wed Mar 20, 2019 7:35 pm
Forum: Personal Investments
Topic: Switch Advisor account to self-managed Vanguard or Schwab?
Replies: 12
Views: 1534

Re: Switch Advisor account to self-managed Vanguard or Schwab?

Great, glad that you've already considered the tax implications of selling their existing holdings. Also, 50-75bp is not terrible as %AUM (you see some horror stories here!), but yes you can do better with a self-managed three-fund portfolio. As to why I prefer Schwab: their checking account is fant...
by happenstance
Wed Mar 20, 2019 7:18 pm
Forum: Personal Investments
Topic: Portfolio review + help getting started in brokerage account
Replies: 5
Views: 763

Re: Portfolio review + help getting started in brokerage account

Great, thanks. And again to ensure smooth harvesting of losses in the new brokerage: We can continue to contribute to the Vanguard funds in the 403b/IRAs freely and automatic reinvestment of dividends can remain on, as they track different indicies than the proposed ETFs (ITOT and IXUS) mentioned a...
by happenstance
Tue Mar 19, 2019 8:03 pm
Forum: Personal Investments
Topic: Switch Advisor account to self-managed Vanguard or Schwab?
Replies: 12
Views: 1534

Re: Switch Advisor account to self-managed Vanguard or Schwab?

Welcome to the forum. Are your parents okay with you taking control of their finances and managing it for them? And out of curiosity, what is the %AUM that Schwab Private Client is charging? 1. You can sell them yourself. But if this is in a taxable account you should do some homework first. Selling...
by happenstance
Sun Mar 17, 2019 11:03 pm
Forum: Personal Investments
Topic: EF placement
Replies: 8
Views: 889

Re: EF placement

tideatty wrote:
Sun Mar 17, 2019 8:16 pm
Is the 2.45 yield before or after the .16 expense ratio?
The SEC yield is always net expenses.
by happenstance
Sun Mar 17, 2019 3:37 pm
Forum: Personal Investments
Topic: EF placement
Replies: 8
Views: 889

Re: EF placement

A long-term bond fund is not an appropriate vehicle for an emergency fund because it can lose value. VPALX's duration is 7.1 years, meaning that if interest rates rose 1%, the value of your investment would fall by about 7% (because prices fall as yields rise). Vanguard has a Pennsylvania Municipal ...
by happenstance
Sun Mar 17, 2019 3:20 pm
Forum: Personal Investments
Topic: Portfolio review + help getting started in brokerage account
Replies: 5
Views: 763

Re: Portfolio review + help getting started in brokerage account

2. We would be doing something very similar in the brokerage - investing various amounts of extra cash monthly. As you mentioned for the sake of tax efficiency, we will be rebalancing into bonds in the 403b as we add stock exposure in the brokerage. The two iShares ETFs really do seem like no-brain...
by happenstance
Sat Mar 16, 2019 11:42 pm
Forum: Personal Investments
Topic: Portfolio Review
Replies: 6
Views: 950

Re: Portfolio Review

Congrats on working on getting the debt paid down. You have the right idea with save early and save often. Regarding the portfolio: what is your rationale for holding Dividend Appreciation, Growth & Income, Small Cap Value, Precious Metals, and Cannabis? Unless you have a reasoned strategy behind ho...
by happenstance
Sat Mar 16, 2019 11:09 pm
Forum: Personal Investments
Topic: Portfolio review + help getting started in brokerage account
Replies: 5
Views: 763

Re: Portfolio review + help getting started in brokerage account

1. You are doing great. Portfolio is simple and well-diversified. The only thing you may want to consider is rolling over the tIRA to the Roth. This has tax implications so you will want to run the math, especially if the gains are large. The advantage of the Roth is that it a tax-free account, whil...
by happenstance
Sat Mar 16, 2019 10:27 pm
Forum: Investing - Theory, News & General
Topic: Curious divergence between Schwab & VG ETF/MF policies
Replies: 5
Views: 737

Re: Curious divergence between Schwab & VG ETF/MF policies

One thing to note is that with the Vanguard funds, the ETF and Admiral shares are just different share classes of the same underlying fund. Vanguard have a patent on this structure, so it's unique to them. The Schwab mutual funds and ETFs are different funds, and they actually track different indexe...
by happenstance
Sat Mar 16, 2019 11:55 am
Forum: Personal Investments
Topic: The future of BMBIX
Replies: 10
Views: 1083

Re: The future of BMBIX

Every one of the 11 funds you listed immediately above is 90% quality bonds. Yes, they all have 90% A bonds or higher, but there's clearly a difference when it comes to quality. During 2008 BMBIX behaved a lot more like VBTLX than MUB did . In the long-term, I agree you're likely fine with any of t...
by happenstance
Sat Mar 16, 2019 11:20 am
Forum: Personal Investments
Topic: The future of BMBIX
Replies: 10
Views: 1083

Re: The future of BMBIX

I was curious about this too, so I reached out to Baird and spoke with one of their representatives regarding two questions I had: (1) Should investors expect a change in the investment policy, as written in the prospectus, with regard to pre-refunded bonds? (2) How will quality be maintained over t...
by happenstance
Tue Mar 12, 2019 9:01 pm
Forum: Investing - Theory, News & General
Topic: Vanguard - Fund Reports, SAI, & Prospectus
Replies: 20
Views: 1663

Re: Vanguard - Fund Reports, SAI, & Prospectus

It is not really necessary to save these documents. I was recently researching a fund, for which I wanted to go back and read some of the un-audited commentary sections of the annual reports from the past 1-2 years. The SEC's EDGAR database keeps an archive of all this shareholder material. It is a ...
by happenstance
Tue Mar 12, 2019 8:10 pm
Forum: Personal Investments
Topic: VTSAX or individual index Mutual Funds for long term
Replies: 6
Views: 933

Re: VTSAX or individual index Mutual Funds for long term

You could do that, but those three funds are pretty highly-correlated with each other because they're all part of the U.S. stock market. In a three-fund portfolio, you also have international stocks as well as bonds, both of which are less-correlated with the U.S. stock market (i.e. more likely to b...
by happenstance
Sat Mar 02, 2019 5:58 pm
Forum: Investing - Theory, News & General
Topic: Vanguard vs everyone else
Replies: 38
Views: 4494

Re: Vanguard vs everyone else

Only Vanguard has a history of lowering expenses in all of its funds and ETFs year after year and passing those savings onto customers. Blackrock and Fidelity have a history of creating new ETFs and funds when they decide to lower expenses. Existing shareholders do not get the benefit if they do no...
by happenstance
Mon Feb 18, 2019 12:52 am
Forum: Personal Investments
Topic: Need help on where to park more Bond funds
Replies: 4
Views: 460

Re: Need help on where to park more Bond funds

Generally it is best to put your higher-returning assets in Roth, which means not bonds. The contributions to Roth IRAs grow tax-free, while 401k is only tax-deferred, making the Roth better for assets that have higher expectations of capital appreciation. Bonds do not grow a lot, they just distribu...
by happenstance
Sun Feb 17, 2019 5:31 pm
Forum: Investing - Theory, News & General
Topic: [Fidelity and Schwab Expand Commission Free ETF list]
Replies: 42
Views: 3537

Re: Fidelity Expands Commission Free ETF list to over 500

Here is the Schwab list . Nothing too exciting, except for more Treasury fund coverage. It looks like the list specifically excludes funds that would compete with Schwab’s own ETFs, so no ITOT, IJR, IDEV, IEMG, etc. Actually, I reckon I overlooked the SPDR Portfolio additions. They compete directly...
by happenstance
Sat Feb 09, 2019 5:53 pm
Forum: Investing - Theory, News & General
Topic: Question on International SCV
Replies: 25
Views: 1942

Re: Question on International SCV

FNDC is not a typical value fund that targets the HML factor. The Fundamental Index methodology weights stocks by quantitative measures of company size, rather than starting with market-cap and screening for value stocks. The strategy asserts that this reduces exposure in the index to growth stocks ...
by happenstance
Fri Feb 08, 2019 11:33 am
Forum: Personal Investments
Topic: Schwab does not allow specific tax lots to be selected online when selling mutual funds
Replies: 74
Views: 4059

Re: Schwab does not allow specific tax lots to be selected online when selling mutual funds

Yesterday I did a TLH between SWTSX>SCHB and SWISX>SCHF. I looked at my cost basis from the Positions tab, identified the lots I wanted to sell (3 from SWTSX and 8 lots from SWISX), and then added up the total quantity of shares for each and entered that for the orders. After placing them, I phoned ...
by happenstance
Fri Feb 08, 2019 9:06 am
Forum: Investing - Theory, News & General
Topic: Tax efficient and FDIC insured
Replies: 11
Views: 1237

Re: Tax efficient and FDIC insured

While not FDIC insured, very short term treasuries are likely just as safe safe and their interest paid is state income tax free. A little bit more risky, but more tax efficient, are funds which mostly have high quality municipal bonds, including pre-refunded ones. As far as I know, pre-refunded mu...
by happenstance
Sun Feb 03, 2019 8:38 pm
Forum: Investing - Theory, News & General
Topic: Asset Allocation Question
Replies: 7
Views: 1092

Re: Asset Allocation Question

The "age in bonds" calculation is just a rule of thumb, so no it is not always a good policy. I don't use it myself. Your AA should change as your your need, willingness, and ability to take risk change. Need refers to your expected expenses in retirement, versus how much you already have saved plus...
by happenstance
Sun Feb 03, 2019 5:49 pm
Forum: Personal Investments
Topic: Thoughts on FDKLX- Fidelity Freedom index 2060
Replies: 3
Views: 492

Re: Thoughts on FDKLX- Fidelity Freedom index 2060

That is a superb choice for a Roth IRA account. If you have an employer-sponsored plan (e.g. 401k), you should also look at maxing out your contributions to that, though your fund options may be different.
by happenstance
Sun Jan 27, 2019 5:01 pm
Forum: Personal Investments
Topic: Schwab does not allow specific tax lots to be selected online when selling mutual funds
Replies: 74
Views: 4059

Re: Schwab does not allow specific tax lots to be selected online when selling mutual funds

It appears you can use spec ID with ETFs at Schwab. Any way to switch over your mutual funds to the ETF versions without a taxable event? No, this isn't possible at Schawb. It only is at Vanguard because the ETFs are a share class of the mutual fund in most cases. You can TLH into the ETFs though.
by happenstance
Sun Jan 27, 2019 4:35 pm
Forum: Personal Investments
Topic: Schwab ETF vs Mutual Fund
Replies: 9
Views: 578

Re: Schwab ETF vs Mutual Fund

I would say there is not really a meaningful difference between the two, though the ETF may come out a little ahead due to the greater tax efficiency. The spreads on SCHB are, in my experience, negligible. You may find this post I wrote comparing the two interesting. I end up using both SWTSX and SC...
by happenstance
Sun Jan 27, 2019 2:10 pm
Forum: Personal Investments
Topic: Fidelity Index Mutual Funds vs Vanguard Index ETF
Replies: 4
Views: 565

Re: Fidelity Index Mutual Funds vs Vanguard Index ETF

If you prefer Fidelity's website and you want to use mutual funds, the Fidelity funds are not going to be awful in a taxable account – especially in a low tax bracket. What matters for tax efficiency purposes is not necessarily the turnover percent, but rather the dividend payout (and the amount qua...
by happenstance
Mon Jan 21, 2019 5:33 pm
Forum: Personal Investments
Topic: VNQI vs VGRLX (mutual fund vs ETF version)
Replies: 1
Views: 490

Re: VNQI vs VGRLX (mutual fund vs ETF version)

Besides commission (for which there is none at Vanguard), there are generally two costs incurred when trading ETFs: the bid-ask spread and the premium/discount to NAV. Since mutual funds trade at NAV at the end of the day, they do not incur these costs. You can look at etf.com under the "Tradability...
by happenstance
Mon Jan 21, 2019 2:30 pm
Forum: Personal Investments
Topic: AA Question - Vangaurd Portfolio Watch
Replies: 1
Views: 230

Re: AA Question - Vangaurd Portfolio Watch

Yes, approximating the Total Stock Market is a totally reasonable and normal thing to do in an employer plan, where you're constrained by the fund choices. The wiki has a page dedicated to approximating TSM with various fund choices. Based on that, if you held the funds in roughly these percentages,...
by happenstance
Mon Jan 21, 2019 10:19 am
Forum: Personal Investments
Topic: For those with both Vanguard and Schwab
Replies: 43
Views: 2972

Re: For those with both Vanguard and Schwab

*I could imagine only using Schwab if I could limit myself to Vanguard ETFS which are available and all very low fee. Why? They don't trade commission free at Schwab. The Schwab ETFs are great, low-cost options and one can easily create a three-fund portfolio with SCHB (US Broad), SCHF (Intl Develo...
by happenstance
Sun Jan 20, 2019 7:47 pm
Forum: Personal Investments
Topic: Which funds are best in my 401k?
Replies: 3
Views: 372

Re: Which funds are best in my 401k?

The recommended Bogleheads portfolio would be made using: FSKAX - Fidelity Total Market Index FTIHX - Fidelity Total International Index FXNAX - Fidelity US Bond Index You could do 80% stocks and 20% bonds, and 40% of stocks in international (basically at the market weight). That'd give you a portfo...
by happenstance
Sun Jan 20, 2019 3:03 pm
Forum: Personal Investments
Topic: For those with both Vanguard and Schwab
Replies: 43
Views: 2972

Re: For those with both Vanguard and Schwab

*I could imagine only using Schwab if I could limit myself to Vanguard ETFS which are available and all very low fee. Why? They don't trade commission free at Schwab. The Schwab ETFs are great, low-cost options and one can easily create a three-fund portfolio with SCHB (US Broad), SCHF (Intl Develo...
by happenstance
Sun Jan 20, 2019 10:44 am
Forum: Investing - Theory, News & General
Topic: International Stock = Lower Qualified Dividends
Replies: 5
Views: 504

Re: International Stock = Lower Qualified Dividends

I don't have enough tax advantaged space for both bonds and international, so I end up holding international (and munis) in taxable. While it's true that the more of the dividends are ordinary rather than qualified, some of that income has already been taxed by foreign governments, making it eligibl...
by happenstance
Sun Jan 20, 2019 10:32 am
Forum: Personal Investments
Topic: For those with both Vanguard and Schwab
Replies: 43
Views: 2972

Re: For those with both Vanguard and Schwab

The checking account is the big feature for me, especially no foreign transaction fees and the ATM fee reimbursement. I also like the Fundamental ETFs for my tilts, which until very recently would have incurred a commission at Vanguard to trade. I also personally like Schwab's website better. All my...
by happenstance
Fri Jan 18, 2019 6:05 pm
Forum: Investing - Theory, News & General
Topic: any issues with FUAMX (Fidelity Intermediate Treasury Bond Index)? better alternatives?
Replies: 14
Views: 1594

Re: any issues with FUAMX (Fidelity Intermediate Treasury Bond Index)? better alternatives?

What tax bracket are you in, and does your state have income tax? Depending on that, Treasuries may not make the most sense in a taxable account, and you could be better served by municipal bonds. No state tax, but I will be in highest federal bracket. However, I am not comfortable putting more tha...
by happenstance
Fri Jan 18, 2019 9:11 am
Forum: Investing - Theory, News & General
Topic: any issues with FUAMX (Fidelity Intermediate Treasury Bond Index)? better alternatives?
Replies: 14
Views: 1594

Re: any issues with FUAMX (Fidelity Intermediate Treasury Bond Index)? better alternatives?

What tax bracket are you in, and does your state have income tax? Depending on that, Treasuries may not make the most sense in a taxable account, and you could be better served by municipal bonds. You should calculate the after-tax yield for these two funds and see if something like VWITX (Intermedi...
by happenstance
Wed Dec 26, 2018 2:31 pm
Forum: Personal Investments
Topic: Total International ETF Options
Replies: 7
Views: 655

Re: Total International ETF Options

Schwab doesn't offer a commission-free total international ETF (nor mutual fund), so both VXUS and IXUS would cost $4.95/trade. The cheapest option at Schwab is to use SCHF for developed (ER 0.06%) and SCHE for emerging (ER 0.13%), and to purchase them in in roughly 80/20 proportion (for a blended E...
by happenstance
Sun Dec 23, 2018 11:15 am
Forum: Personal Investments
Topic: International Allocation
Replies: 13
Views: 1264

Re: International Allocation

There have been countless discussions on this board about what the right amount is to allocate to international. The prevailing wisdom is anywhere between 0% - 50% of your equities, with a lot of people holding 0%, 20%, or close to the global market cap weight of ~50%. With your portfolio, you're ab...
by happenstance
Tue Dec 11, 2018 8:40 pm
Forum: Investing - Theory, News & General
Topic: Shrinking dividends?
Replies: 30
Views: 4268

Re: Shrinking dividends?

I've been wondering this for a while: is there data available comparing the dividends paid by companies over time (ideally back to 1980 or before), versus the amount companies are repurchasing via share buybacks? I ask because there are frequently news articles lamenting the decline of both the numb...