Search found 549 matches

by kiddoc
Tue Jan 30, 2024 4:11 pm
Forum: Personal Investments
Topic: Aggregator Software
Replies: 19
Views: 1508

Re: Aggregator Software

I used Personal Capital that is now owned by Empower. Getting more and more nervous about a data leak but haven't found a better option yet.
by kiddoc
Wed Mar 29, 2023 10:00 pm
Forum: Personal Investments
Topic: [Non-governmental 457 contributions protected in case of provider bankruptcy?]
Replies: 5
Views: 663

Re: [Non-governmental 457 contributions protected in case of provider bankruptcy?]

You can only claim losses on your own assets, that you own. As a non-govt 457 is never owned by you until distribution, you cannot claim any tax losses if you lose the money. I had to consider this before starting to invest in my non-govt 457b this year. My hospital system is quite financially robust, with A+ bond ratings and a few billion in cash reserves. If they were shaky, I'd have passed. You can invest quite tax efficiently in taxable accounts. The initial tax hit hurts for sure.
by kiddoc
Mon Jan 09, 2023 2:04 pm
Forum: Personal Investments
Topic: Would you invest in this non-gov 457?
Replies: 14
Views: 1269

Re: Would you invest in this non-gov 457?

I ran the AARP calculator. If I do this, it will be 90% stocks 10% bonds. So, I used an annual nominal rate of return of 8%. Looks like my break-even period of contributions is 2 years! Looking interesting. Neglect the tax-free part. Not an option in this scenario as I am already maximizing Roth and HSA space.

https://www.aarp.org/work/retirement-pl ... lator.html

Used monthly contributions of $1425 in taxable and $1875 in 457 to compare apples-to-apples.
by kiddoc
Mon Jan 09, 2023 1:57 pm
Forum: Personal Investments
Topic: Would you invest in this non-gov 457?
Replies: 14
Views: 1269

Re: Would you invest in this non-gov 457?

I am MFJ and max out my non-governmental 457b every year. Everyone is always worried about a hospital “going under” and losing their money, but I have never heard of this actually happening. My hospital system is massive and stable so I am not worried about that at all. I am in the highest tax bracket so it is a great option for me - a no brainer really. Same about stability; not about tax bracket (24%). Does seem like a no brainer for you. I'm not following that logic. Unless changes are made, the 24% bracket will revert to 28% for both singles and marrieds. I think you are mistaken. Look for tax rates for income around 300K and MFJ before and after Tax cuts and jobs act. While it's always wise to consider the financial health of any empl...
by kiddoc
Sun Jan 08, 2023 8:20 pm
Forum: Personal Investments
Topic: Would you invest in this non-gov 457?
Replies: 14
Views: 1269

Re: Would you invest in this non-gov 457?

Thanks all. Looks like the consensus is don't invest. Not enough information. If you are single and already filling two tax-deferred accounts, I think that is enough unless you plan to retire pretty early. Tax-deferral is a great and wonderful thing if you only defer "enough" or some amount over "enough". If you tax-defer a "whole lot more than enough", reversing and going the other direction later on in life can be costly. In 2026, the 24% bracket will go back to 28%, not 33% (unless higher income pushes it to 33%). But your example does make sense. Why defer at 24% when you might pay 28% later on to use the money or convert it to Roth? Bottom line is that things like filing status, amounts in tax deferral now...
by kiddoc
Sat Jan 07, 2023 7:15 am
Forum: Personal Investments
Topic: Would you invest in this non-gov 457?
Replies: 14
Views: 1269

Would you invest in this non-gov 457?

Large hospital system making a non-government 457 available. Good investment options (Vanguard institutional class 3-fund portfolio among the options). No extra fees. Disbursement allowed to spread out over 10 years after separation from employer or roll over to another non-gov 457 or lumpsum. Stable large health system with A+ bond rating. I am maxing out 401k, 403b, HSA, backdoor roths, and am currently using taxable for these investments. No debt. Here's my issue: Under current law, my marginal tax rate is 24%. As the law stands, it will go up to 33% in 2026. So, my withdrawal marginal rate might be higher than current rate unless the law changes. I have no current plans to separate from my employer, but the entire healthcare system is i...
by kiddoc
Fri Jan 06, 2023 2:38 pm
Forum: Personal Investments
Topic: My 2022 returns: Finally earning my 1% AUM fee :)
Replies: 13
Views: 2987

Re: My 2022 returns: Finally earning my 1% AUM fee :)

afan wrote: Fri Jan 06, 2023 10:28 am Do you compute risk metrics on your portfolio?
If so, how do your results compare to the benchmark portfolio on variance, skewness and kurtosis?
If you do not compute the risk metrics, is it possible that you have realized higher returns due to higher risk, with a risk-adjusted return equal to or worse than the benchmark?
I look at the Sharpe and Sortino ratios on portfolio visualizer to get a sense. They have been essentially a wash between a 3-fund portfolio and my portfolio over the past 6-7 years.

Hard to do it exactly because there is no substitute for individual I-bonds, TIPS and CDs that I know of. Those 3 would bring up my risk adjusted return substantially above a 3-fund portfolio, I'd imagine.
by kiddoc
Fri Jan 06, 2023 10:29 am
Forum: Personal Finance (Not Investing)
Topic: Faster mortgage paydown?
Replies: 20
Views: 1875

Re: Faster mortgage paydown?

If looking at guaranteed pay-out (apples to apples), you will see a differential of 1.5-2%/ year. Averages out to about $1800/yr over 9 years. Mathematically it makes sense to keep the mortgage. Question is whether $1800/yr is worth having the debt hanging over your head. Since I got rid of my mortgage, my risk tolerance has gone up and cashflow improved significantly. I would take the loss of paying the mortgage off and invest more aggressively but that's just me. Your math is correct.
by kiddoc
Fri Jan 06, 2023 10:22 am
Forum: Personal Investments
Topic: My 2022 returns: Finally earning my 1% AUM fee :)
Replies: 13
Views: 2987

Re: My 2022 returns: Finally earning my 1% AUM fee :)

Stinky wrote: Fri Jan 06, 2023 3:58 am How often do you rebalance your (11) funds?

And what is your rebalancing threshold?
5/25 rebalance thresholds. I check every 6 months or when there are big market moves. In the past 3-4 years, only 2 rebalance thresholds were hit, one for the covid crash and one for the recovery.
by kiddoc
Thu Jan 05, 2023 8:20 pm
Forum: Personal Investments
Topic: My 2022 returns: Finally earning my 1% AUM fee :)
Replies: 13
Views: 2987

Re: My 2022 returns: Finally earning my 1% AUM fee :)

Jack FFR1846 wrote: Thu Jan 05, 2023 8:15 pm Fidelity actually looked at it's 401k account holders and do you know how the slackers did? They did second best. Not bad. Something worth striving for, I think.

Oh, you want to know who came in first? You sure? Ok. Those who beat everyone else handily were......dead. So being a slacker seems like a good way to go.
We also know why they did the best. A portfolio not looked at/ rebalanced for years keeps on becoming more and more risky over time. More risk=more return, on average and over the long run.
I just don't want that risk of no rebalancing in order to juice my returns.
by kiddoc
Thu Jan 05, 2023 8:10 pm
Forum: Personal Investments
Topic: My 2022 returns: Finally earning my 1% AUM fee :)
Replies: 13
Views: 2987

Re: My 2022 returns: Finally earning my 1% AUM fee :)

I’m curious about your concern that you will start “slacking off” if you moved to a passive 3-fund portfolio. What do you mean? I meant I will slack off on keeping meticulous records if I stop posting returns on Bogleheads. You all inspire me to remain accountable and track returns faithfully. That's why I keep doing this every year. I commend you for sticking to your plan. I do agree with you that small and value tilt will probably win out but only over the very long term. :sharebeer Small value heads rejoice!! Maybe I missed it, but do you care to share your portfolio, tickers + weights? Am interested in your thought process. I have in the past but here it is again: Stocks: 60% (Total US 24%, US Sml val 12%, Intl dev/total intl 12%, EM 6...
by kiddoc
Thu Jan 05, 2023 12:14 pm
Forum: Personal Investments
Topic: My 2022 returns: Finally earning my 1% AUM fee :)
Replies: 13
Views: 2987

Re: My 2022 returns: Finally earning my 1% AUM fee :)

Stinky wrote: Thu Jan 05, 2023 5:03 am Do you expect your portfolio to beat the 3 fund portfolio over time?

If so, what gives you that confidence?
You mean like the tons of long-term academic research showing outperformance by small value tilted portfolios?
I fully realize past performance doesn't guarantee future results but it's all we have even for the 3-fund portfolio against high-cost active management.

I don't think nor recommend that someone needs to do what I am doing to succeed. Sticking to and consistently investing in A plan is way more important that choosing the perfect plan.
by kiddoc
Wed Jan 04, 2023 8:43 pm
Forum: Personal Investments
Topic: My 2022 returns: Finally earning my 1% AUM fee :)
Replies: 13
Views: 2987

My 2022 returns: Finally earning my 1% AUM fee :)

Lol, provocative title. What I mean is I am earning an annualized 1% outperformance over a 3-fund portfolio over the past 7 years of investing finally. I am a DIY slice-and-dice portfolio holding Boglehead. Have held steady and did nothing, kept on buying, holding and rebalancing through thick and thin. Trailed the 3-fund and led it from time to time. My moral: Having a reasonable plan you can stick with and applying as many Boglehead principles as you can is more important than what that actual plan is. It may be slice+ dice, a 3-fund portfolio, or another reasonable, low-cost option. My outperformance is purely luck, not skill. STAY THE COURSE. Why do I keep doing this year after year? To hold myself accountable and force me to keep metic...
by kiddoc
Thu Feb 24, 2022 9:58 pm
Forum: Personal Investments
Topic: Viewing cost basis of gifted shares on Fidelity
Replies: 5
Views: 646

Re: Viewing cost basis of gifted shares on Fidelity

Thank you all. Yes, I received form 8283 and all securities were held >1 year. I was looking for the cost basis as Turbotax asks for it and the date of purchase (understandable why).
by kiddoc
Wed Feb 23, 2022 10:16 am
Forum: Personal Investments
Topic: Viewing cost basis of gifted shares on Fidelity
Replies: 5
Views: 646

Viewing cost basis of gifted shares on Fidelity

I am relatively new to Fidelity's taxable account interface. One aspect I liked about Vanguard's taxable account layout was their cost basis page showing options for realized, unrealized and gifted shares. Is there a similar page for fidelity? A google search didn't help much.
For context, I had donated appreciated stock from fidelity taxable to a fidelity donor advised fund. I had to look through prior statements to figure out the cost basis and was able to find it. Is there a better way though?
by kiddoc
Thu Jan 06, 2022 9:27 pm
Forum: Personal Investments
Topic: Roth IRA Backdoor Strategy Moving Forward
Replies: 16
Views: 2323

Re: Roth IRA Backdoor Strategy Moving Forward

What is your marginal tax bracket compared to when you plan to withdraw? If expected to be lower now, just convert all the money (deductible and non-deductible) into Roth IRAs and pay the taxes at a lower tax rate. As the law stands, marginal tax brackets are rising in 2026. I won't discuss potential new legislation or extension, just what is currently the law.

This is assuming you have external cashflow to pay the taxes. Do not use the IRA amount to pay the taxes. Then only convert the part for which you can convert without touching the IRA money for taxes. If you expect the marginal tax rate to be lower at withdrawal, neglect my suggestion.
by kiddoc
Thu Jan 06, 2022 9:20 pm
Forum: Personal Investments
Topic: 2021 returns: Finally outperforming the 3-fund portfolio!!
Replies: 31
Views: 6011

Re: 2021 returns: Finally outperforming the 3-fund portfolio!!

I outperformed it as well: 3 fund did 15.03% 1 fund VTI did 28.54% Good for you. That portfolio was riskier than mine and you were rewarded for the risk. Awesome! By cashflows, do you simply mean deductions and deposits into the account? Or something else? If so, cant you run a simulation with regular additions? Irregular cashflow, small windfalls, lucky/unlucky timing, tax loss harvesting, tax-gain harvesting. Easy to document in spreadsheets in real time and then calculate XIRR return, impossible to simulate. Anyhow, to keep this actionable, I track returns using Excel. Update spreadsheet once a month looking at personal capital, 5/25 rebalancing. Calculate returns once a year using XIRR function for money weighted returns. Net time spen...
by kiddoc
Thu Jan 06, 2022 8:20 pm
Forum: Personal Investments
Topic: 2021 returns: Finally outperforming the 3-fund portfolio!!
Replies: 31
Views: 6011

Re: 2021 returns: Finally outperforming the 3-fund portfolio!!

AlphaLess wrote: Thu Jan 06, 2022 8:18 pm I think this post belongs in the "Fooled by randomness" section.
Jeez. May I be fooled by such randomness over the next 20+ years. :sharebeer
by kiddoc
Thu Jan 06, 2022 8:17 pm
Forum: Personal Investments
Topic: 2021 returns: Finally outperforming the 3-fund portfolio!!
Replies: 31
Views: 6011

Re: 2021 returns: Finally outperforming the 3-fund portfolio!!

pkcrafter wrote: Wed Jan 05, 2022 9:06 am You mentioned REITs above, but not here. Do you still hold them? Are they listed as equity?


Paul
Oops sorry. VNQ, USRT and private investments. 50-50 public vs non-public
by kiddoc
Thu Jan 06, 2022 8:14 pm
Forum: Personal Investments
Topic: 2021 returns: Finally outperforming the 3-fund portfolio!!
Replies: 31
Views: 6011

Re: 2021 returns: Finally outperforming the 3-fund portfolio!!

Outer Marker wrote: Wed Jan 05, 2022 9:30 am I'm not sure if I've got the OP's allocations exactly right, but if you plug the allocations below into portfolio visualizer, over the last 10 years, the 3-funder far outperformed the slice-and-dicer.
Big problem with your simulation is no cashflows. Add in cashflows and the difference drops. I can just tell you what I got. Not sure it is even possible to run a simulation. If we were to run a retrospective simulation, I'd have to adjust everything and contribute more in years I saved more and less in years I saved less.
by kiddoc
Tue Jan 04, 2022 12:49 pm
Forum: Personal Consumer Issues
Topic: $1,000 for Antibiotic !!!
Replies: 79
Views: 8018

Re: $1,000 for Antibiotic !!!

RXfiles wrote: Tue Jan 04, 2022 12:14 pm OP should consult a healthcare professional. Not google. Or bogleheads. Theres some really bad medical advice in this thread. From people who obviously don't know what they're talking about.
+1
by kiddoc
Mon Jan 03, 2022 10:00 pm
Forum: Personal Consumer Issues
Topic: $1,000 for Antibiotic !!!
Replies: 79
Views: 8018

Re: $1,000 for Antibiotic !!!

Jags4186 wrote: Mon Jan 03, 2022 8:31 pm The answer is “I cannot afford $1000 and will need either an alternative or I’ll need to see a different doctor for another opinion.”
Lol. Unless the original decision was wrong, most docs will jump at the second option if you say it forcefully. Saves a lot of time for the doc. Unfortunately, delays treatment for the patient and so the good ones will still take time to explain why the alternatives suck.
by kiddoc
Mon Jan 03, 2022 9:52 pm
Forum: Personal Consumer Issues
Topic: $1,000 for Antibiotic !!!
Replies: 79
Views: 8018

Re: $1,000 for Antibiotic !!!

Actually if your relative finds this for less than $1000 please let me know how/where. You can DM me or post it here. I would love to give that avenue to patients when I prescribe this. It is a costly and delayed mess every single time with Medicare (bulk of my practice).
by kiddoc
Mon Jan 03, 2022 9:43 pm
Forum: Personal Consumer Issues
Topic: $1,000 for Antibiotic !!!
Replies: 79
Views: 8018

Re: $1,000 for Antibiotic !!!

Never saw a federally insured patient pay less than $500-2000 for this med. It is a drug of last resort as the infection is resistant to commonly used agents. Still under patent till March 2027 at which point lower cost generics may become available. Trust me docs hate prescribing this and don't do so if they have an alternative. It just sets off a slew of phone calls and time sinks with an eventual bill of $500-2000 to the patient, and lots of ill-will towards the doc.

I agree, American healthcare laws suck. The exclusion of Medicare/ Medicaid patients from manufacturer coupons is the most ridiculous thing ever.
by kiddoc
Mon Jan 03, 2022 9:22 pm
Forum: Personal Investments
Topic: 2021 returns: Finally outperforming the 3-fund portfolio!!
Replies: 31
Views: 6011

Re: 2021 returns: Finally outperforming the 3-fund portfolio!!

aristotelian wrote: Mon Jan 03, 2022 7:02 am What funds do you use for your portfolio? Or are you picking stocks?
Not everything at the same time but usually cycle through these:

60% in US:
2/3 total market: VTSAX, VTI, Fidelity total market index
1/3 small value: VBR, IJS, IVOV (Vanguard and ishares)

33% in international:
50% total market/developed: VXUS, VTIAX, VEU, VFWAX, Fidelity international index (depending on whats available in account and tax-loss harvesting)
25% emerging: VWO, IEMG (Vanguard and ishares)
25% small: VSS (Vanguard intl small cap)

7% in gold miners: GDX, RING


25% bonds: Vanguard total bond and municipal bond funds, individual I-bonds and TIPS.
by kiddoc
Sun Jan 02, 2022 1:22 pm
Forum: Personal Investments
Topic: Vanguard won't allow transfer from one settlement fund to another?
Replies: 21
Views: 3062

Re: Vanguard won't allow transfer from one settlement fund to another?

Are trying this in the app or their website? If the app, it is only half cooked. Try the website. If the website doesn't work, all I can say is typical Vanguard :oops: Let us know how it goes and if their customer service can identify the error.
by kiddoc
Sun Jan 02, 2022 12:50 pm
Forum: Personal Investments
Topic: Vanguard won't allow transfer from one settlement fund to another?
Replies: 21
Views: 3062

Re: Vanguard won't allow transfer from one settlement fund to another?

I figured it out. It is a Vanguard IT nuisance. You cant use their contribute to the IRA tab to do this. Go to your brokerage account. Then choose exchange funds. Sell $7000 in the brokerage settlement fund. Choose the IRA in "where is the money going to". It will count as contribution.
by kiddoc
Sun Jan 02, 2022 12:40 pm
Forum: Investing - Theory, News & General
Topic: Morningstar article on Vanguard and the pressure it faces
Replies: 138
Views: 14772

I finally understand Vanguard's problems

[Thread merged into here --admin LadyGeek] After many threads (some from me) on the forum about Vanguard's IT problems and customer service ineptitude, as well as evidence to the contrary, Morningstar has a nice article explaining Vanguard's IT budget limitations compared to other brokerages. https://www.morningstar.com/articles/1071801/has-vanguard-lost-its-way It is neither good nor bad. Just a fact we should be aware of while picking brokerages. Plenty of people receive excellent service from Vanguard, plenty elsewhere and the same for poor service. The following statement really sums it up for me: Vanguard’s rivals possess higher-margin businesses that they can use to subsidize their index funds, as well as to cover their increasingly ...
by kiddoc
Sun Jan 02, 2022 12:34 pm
Forum: Personal Investments
Topic: Vanguard won't allow transfer from one settlement fund to another?
Replies: 21
Views: 3062

Re: Vanguard won't allow transfer from one settlement fund to another?

Are you contributing to the IRA? The yearly limit is $6000 if you don't qualify for the catch up. I trust Vanguard's IT to mislead on the error code but they are usually correct when picking up errors.
by kiddoc
Sun Jan 02, 2022 12:27 pm
Forum: Personal Investments
Topic: 2021 returns: Finally outperforming the 3-fund portfolio!!
Replies: 31
Views: 6011

Re: 2021 returns: Finally outperforming the 3-fund portfolio!!

Was this really worth it? Seems just as likely, if not more likely, to have under-performed. Given the fact that a lot of people would switch investments for a 0.11% change in expense ratio, and an additional $1000-2000 benefit per year from tax loss harvesting followed by tax gain harvesting, it seems somewhat worth it for me. When all of my investments were held at Vanguard I could easily determine my personal performance by using Vanguard's charts Brokerages (especially Vanguard) can be notoriously inaccurate with returns. People have even complained of missing dividends from Vanguard statements here. I maintain a spreadsheet to track investments spread out over Fidelity (employer, now my preferred Roth and taxable), Vanguard (winding d...
by kiddoc
Sun Jan 02, 2022 5:40 am
Forum: Personal Investments
Topic: 2021 returns: Finally outperforming the 3-fund portfolio!!
Replies: 31
Views: 6011

Re: 2021 returns: Finally outperforming the 3-fund portfolio!!

JDave wrote: Sun Jan 02, 2022 5:26 am Come back in 30 years and let us know how you've done.
Sure :sharebeer Hey, I am already 20% of the way there.
by kiddoc
Sun Jan 02, 2022 4:32 am
Forum: Personal Investments
Topic: Question about REITS….
Replies: 39
Views: 4512

Re: Question about REITS….

Hi All, I have a portfolio that is somewhat of a mess that I am trying to balance and diversify. I hold no REITs, and read that it is reasonable to have roughly 5-15% worth or REITS in the portfolio. Anything wrong with that ? As for picking a REIT, its yet another thing I know little about, but based on what I have read, a residential REIT may be good now as they can increase rents due to potential inflation so this may be an inflation hedge. Assuming I would want some sort of diversified fund like Vanguard Real Estate ETF (VNQ) (just googled something, no idea if this is any good). Is there a specific ETF or mutual fund that focuses on residential REITs ? What in general should I know about REITS ? Thanks My 2 cents: don't go from one me...
by kiddoc
Sun Jan 02, 2022 4:27 am
Forum: Personal Investments
Topic: Where to park money for house build?
Replies: 7
Views: 1309

Re: Where to park money for house build?

Fidelity accounts where they spread the risk among institutions or money market. You are not looking for return on this money so simpler (and single account) is better.
by kiddoc
Sun Jan 02, 2022 4:23 am
Forum: Personal Investments
Topic: tax withheld in taxable acct - fidelity and vanguard
Replies: 5
Views: 836

Re: tax withheld in taxable acct - fidelity and vanguard

Update your W9. You checked a withholding box.
by kiddoc
Sun Jan 02, 2022 4:19 am
Forum: Personal Investments
Topic: 2021 returns: Finally outperforming the 3-fund portfolio!!
Replies: 31
Views: 6011

Re: 2021 returns: Finally outperforming the 3-fund portfolio!!

Just realized I haven't posted my asset allocation in a while. Here it is (roughly). This has not changed in a long time except moving some stock allocation to real estate. Stocks: 65% Real estate: 10% Bonds:25% Stocks breakup: 60% in US: 2/3 total market, 1/3 small value 33% in international: 50% total market/developed, 25% emerging, 25% small 7% in gold miners or opportunistic investments I am evaluating for IPS Bonds break-up: Total US: About 45% Inflation protected US: Around 47% Municipal: 8%, and declining. Tax-protected space went up 3-4 years ago so haven't been adding money Real estate: 50:50 mix of REIT and private real estate. As my marginal tax bracket keeps goes up, chances are I will move some more stock and bond allocation he...
by kiddoc
Sun Jan 02, 2022 3:51 am
Forum: Personal Investments
Topic: 2021 returns: Finally outperforming the 3-fund portfolio!!
Replies: 31
Views: 6011

2021 returns: Finally outperforming the 3-fund portfolio!!

I am no hedge fund manager. The out-performance is 0.11% annualized over 6 years :happy . I am just glad I caught up finally, benefiting from the small-value premium this year. I post my actual returns every year as an opportunity for self-reflection and accountability. Completed the planned change to my IPS this year: eliminated large value as an asset class by donating it. I split its allocation between total market and small value as its returns were always in between the two. Here are the returns (IRR, annualized). Please note that asset class returns are not YTD. I do not track my asset class returns separately per year. All returns include dividends but are not adjusted for taxes. YTD return 2021 My portfolio(75/25, slice-and-dice, 60...
by kiddoc
Mon Dec 27, 2021 11:30 pm
Forum: Personal Investments
Topic: UPRO
Replies: 19
Views: 2363

Re: UPRO

Hmmm... mixed to negative responses. When I start seeing a lot of support for 100% UPRO on this forum, I may gamble into shorting the S&P 500. Leveraged product popularity, giving up jobs and home equity to purchase them, staunch defense of such products have been pretty good markers of tops of stock market bubbles in the past.
I refer interested readers to financial history books by Bill Bernstein.
by kiddoc
Fri Dec 03, 2021 12:10 pm
Forum: Personal Investments
Topic: Default Boglehead brokerage/ investment option now that Vanguard abandoned Bogle?
Replies: 56
Views: 6507

Re: Default Boglehead brokerage/ investment option now that Vanguard abandoned Bogle?

But as was pointed out above, they never said anything about adding private equity to anyone's account unless they asked for it, certainly not to their target date funds. This is seriously a non-issue. Please listen to Vanguard's Private equity manager discussing Vanguard CEO and his plan to include private equity allocation instead of public equity in PAS as well as target date funds. Starting small for now with accredited investors, timeline very hazy. https://www.bloomberg.com/news/audio/2021-08-20/fran-kinniry-on-private-equity-portfolio-investments-podcast Most relevant portion starts around minute 9. Also listen to Rick Ferri discussing these changes at Vanguard in the Bogleheads podcast episode 38 https://www.bogleheads.org/blog/202...
by kiddoc
Fri Dec 03, 2021 11:59 am
Forum: Personal Investments
Topic: VSS holding 5% cash? (Vanguard international small-cap)
Replies: 2
Views: 614

VSS holding 5% cash? (Vanguard international small-cap)

I hold VSS in my Roth. Just noticed its portfolio lists almost 5% in cash. Is that usual or par for the course for a fund this size in this asset class? See last page in portfolio holdings.

https://investor.vanguard.com/etf/profi ... o-holdings
by kiddoc
Wed Dec 01, 2021 7:51 pm
Forum: Personal Investments
Topic: Default Boglehead brokerage/ investment option now that Vanguard abandoned Bogle?
Replies: 56
Views: 6507

Re: Default Boglehead brokerage/ investment option now that Vanguard abandoned Bogle?

Thanks to all who responded. My conclusions: 1. Stick to Vanguard products as I have been. There is some sort of regulation (would appreciate direct link) that means no one can fudge tracking errors or substitute NAV for total return for index funds. So the Vanguard/Fidelity/ Schwab website tracking errors can be trusted. 2. Brokerages: To each their own. I may have a biased opinion based on n of 1. And probably because my taxable transactions are higher than the average Boglehead (less access to tax protected investments for various non-modifiable reasons). 3. Keep watching Vanguard's asset allocation as I do intend to make a transition to Target-date funds in the next 10 years once financially independent. No need to act on Vanguard's man...
by kiddoc
Wed Dec 01, 2021 12:44 am
Forum: Personal Investments
Topic: HSBC switching to Citizens, any better Online Banks?
Replies: 19
Views: 2267

Re: HSBC switching to Citizens, any better Online Banks?

Ally has been our hub account for many years now. No complaints or regrets. Though they are not top-of-the-market for savings rates anymore, they still provide excellent service and many free services.
We also have a joint checking account at Fidelity for side-gig income that goes into investments. Not as many features as Ally but easy to transfer to investment accounts and works just fine as checking acct if you already have other accounts with Fidelity.
by kiddoc
Wed Dec 01, 2021 12:26 am
Forum: Personal Investments
Topic: Default Boglehead brokerage/ investment option now that Vanguard abandoned Bogle?
Replies: 56
Views: 6507

Re: Default Boglehead brokerage/ investment option now that Vanguard abandoned Bogle?

To everyone showing the tracking error from Vanguard's website: It is very reassuring if that is regulated as those numbers are negligible. I was not aware this is regulated and everyone has to report standard numbers using best practices for total returns. Does this regulation apply for every brokerage?
by kiddoc
Wed Dec 01, 2021 12:23 am
Forum: Personal Investments
Topic: Default Boglehead brokerage/ investment option now that Vanguard abandoned Bogle?
Replies: 56
Views: 6507

Re: Default Boglehead brokerage/ investment option now that Vanguard abandoned Bogle?

Bama12 wrote: Tue Nov 30, 2021 11:48 pm This board should be renamed to I hate Vanguard.

I don't understand why we get daily post about Vanguard. If you all keep it simple like you say then Vanguard is great.
Thank you. Can you please explain how to keep it simple in a taxable vanguard account and tax-loss harvest a 3-ETF portfolio using their app? I will be very thankful and stop hating Vanguard 50%. I don't want to use a workplace computer to log into their website to do this and their app doesn't show tax lots. I hope I just missed something and Vanguard is as great as you say they are. I hope tax-loss harvesting didn't become too complicated to fit into the definition of simplicity for Bogleheads.
by kiddoc
Tue Nov 30, 2021 11:32 pm
Forum: Personal Investments
Topic: Default Boglehead brokerage/ investment option now that Vanguard abandoned Bogle?
Replies: 56
Views: 6507

Re: Default Boglehead brokerage/ investment option now that Vanguard abandoned Bogle?

tibbitts wrote: Tue Nov 30, 2021 11:19 pm I'm unaware of any issues with Vanguard index fund tracking errors. Examples?
I am unaware because I don't know how to best measure and compare it. Is there a best practice and a website that does it? To a relatively dumb investor like me, various brokerages can fudge how they present benchmark data and possibly change the tracking error.
by kiddoc
Tue Nov 30, 2021 11:27 pm
Forum: Personal Investments
Topic: Default Boglehead brokerage/ investment option now that Vanguard abandoned Bogle?
Replies: 56
Views: 6507

Re: Default Boglehead brokerage/ investment option now that Vanguard abandoned Bogle?

AlohaJoe wrote: Tue Nov 30, 2021 11:19 pm
If you want to know tracking error, just look at the fund's page.
I did, and ended up being confused. I am not that sophisticated in this analysis, so didn't know if they should report/look at total return, NAV or something else. That's why I am looking for a gold standard website that uses best practice, whatever it is. Basically a morningstar for tracking error in total return. Maybe it is possible in morningstar. If so, please let me know how. Thanks.
by kiddoc
Tue Nov 30, 2021 11:04 pm
Forum: Personal Investments
Topic: Default Boglehead brokerage/ investment option now that Vanguard abandoned Bogle?
Replies: 56
Views: 6507

Re: Default Boglehead brokerage/ investment option now that Vanguard abandoned Bogle?

bhsince87 wrote: Tue Nov 30, 2021 10:58 pm I'm not sure I understand.

Which of these are you unable to do at Vanguard now?

Keep it simple
Buy the market (index). Don't try to beat it.
Stay the course
Diversify
Keep costs low
The first three if someone uses target date funds and they add 30% private equity/ active funds as their management has implied.
Also, it is impossible to sell anything in a taxable account in a financially responsible manner on their mobile app as they stopped displaying specific tax lots or cost basis.
by kiddoc
Tue Nov 30, 2021 10:54 pm
Forum: Personal Investments
Topic: Default Boglehead brokerage/ investment option now that Vanguard abandoned Bogle?
Replies: 56
Views: 6507

Default Boglehead brokerage/ investment option now that Vanguard abandoned Bogle?

For my 8 years of serious investing, I have recommended Vanguard as the default investment firm to friends and family.I have felt their index funds, target-date funds and ETFs were top notch, low-cost, and very "Bogleheaded". I stopped recommending them as a brokerage after experiencing extremely poor customer service and started saying, "you can use Vanguard but I think Fidelity or Schwab are better brokerages; try to buy Vanguard ETFs there and neglect any marketing you get". Then Vanguard came out with this disastrous app and I started saying "actively avoid Vanguard brokerage, especially if you have a taxable account and/or tax-loss harvest on the app". Now, I recently reviewed how they keep changing the re...
by kiddoc
Fri Feb 05, 2021 1:35 pm
Forum: Personal Investments
Topic: Late start and digging myself out of a hole, appreciate input
Replies: 26
Views: 3916

Re: Late start and digging myself out of a hole, appreciate input

Other people have given you useful feedback but being a nephrologist, something really jumped out at me: Combined income 195K. If I am assuming correctly and you are an adult nephrologist working full time, that is abysmally low. You are probably going to pay way more in PSLF (through lower salary) than you would have in a regular job. You could have joined a private practice and paid that loan off in 2-3 years after becoming partner (so total 4 years). Or taken up an employed position and paid it off in 4-5 years. There are employed positions in nephrology paying 300K+ and partners can make 600K+. After paying off the loans, you would have 4-5 more years of extra income compared to PSLF. Nephrologists care for the sickest patients and are ...
by kiddoc
Sat Jan 02, 2021 6:48 pm
Forum: Personal Investments
Topic: Borrowing against stock funds when making a big purchase
Replies: 26
Views: 3518

Re: Borrowing against stock funds when making a big purchase

I am very vary of these schemes for marginal benefit and high risk. Let's look at best and worst case scenario: Best case: You take a 200K margin loan and use a mortgage for the rest. You will buy a 1M home. You will spend years paying down these loans. At the end, your gain would be: Investment returns on 200K - Interest payment on margin loan. Your cash flow might be restricted for a while at least until the margin loan is paid off. Worst case: Being CA, you see a nicer home. Since your liquidity is "endless", you go for a 1.5 M home instead.You get a margin loan for 300K and the rest is mortgage. A few months later, an unexpected stock market crash occurs. You get hit with a 200K margin call and have to pay the mortgage payment...