Search found 365 matches

by aj76er
Tue Dec 12, 2017 1:24 am
Forum: Investing - Help with Personal Investments
Topic: Wellesley as an alternative to CDs and money market?
Replies: 8
Views: 817

Re: Wellesley as an alternative to CDs and money market?

If it's more than a few years out, then I-bonds could be a consideration. There is a $10k annual contribution limit per SSN and they are illiquid the first year. Because we are at the end of the year, you could add $10k this month and $10k next month. Currently, I-Bonds are yielding 2.58% Note: If s...
by aj76er
Sun Dec 10, 2017 2:31 am
Forum: Investing - Theory, News & General
Topic: TSM vs High Dividend Yield if I never choose to sell?
Replies: 36
Views: 2143

Re: TSM vs High Dividend Yield if I never choose to sell?

You could look into Vanguard's Dividend Growth Fund. Looks like the mutual fund may be closed to new investors, but the ETF (VIG) should still be available. A total market fund, or an S&P, or a dividend growth fund should all experience dividend growth over time. With a growth-oriented fund, like to...
by aj76er
Sun Dec 10, 2017 12:15 am
Forum: Personal Consumer Issues
Topic: What MPG App Do You Use To Track Fuel Usage ?
Replies: 61
Views: 2137

Re: What MPG App Do You Use To Track Fuel Usage ?

I use a simple google sheets spreadsheet and I track the mileage with the car's trip odometer (which I reset after each fill up).
I can access google drive on my phone, so I'll take a few minutes after each fill up and add the entry (date, miles driven, gallons used).
by aj76er
Fri Dec 08, 2017 10:19 pm
Forum: Investing - Theory, News & General
Topic: Valuation of EE Savings Bonds
Replies: 88
Views: 11140

Re: Valuation of EE Savings Bonds

In thinking about safe, non-marketable investments I have recently converted my mental model to use separate "Liability Matching Portfolio" (LMP) and "Risk portfolio" (RP) concepts. This is a change from lumping the assets under "fixed-income" portion of a single portfolio. I can tell you that this ...
by aj76er
Fri Dec 08, 2017 9:23 pm
Forum: Investing - Help with Personal Investments
Topic: on keeping a tranche of active mgmt in Roth
Replies: 16
Views: 608

Re: on keeping a tranche of active mgmt in Roth

You could look into Wellington/Wellesley which both have very good track records. I only hold a single active fund, ANWPX; it was gifted to me as a child (~30yrs ago) and I simply never sold it. It is a global growth fund. When it was introduced, it was ahead of it's time (much, much earlier than Va...
by aj76er
Fri Dec 08, 2017 9:12 pm
Forum: Personal Finance (Not Investing)
Topic: Ally Bank raises 11 month ($25k min) No Penalty CD from 1.5% to 1.6%
Replies: 25
Views: 3356

Re: Ally Bank raises 11 month ($25k min) No Penalty CD from 1.5% to 1.6%

bikechuck wrote:
Fri Dec 08, 2017 4:20 pm
one basis point.
Isn't it 10bps? Still a pretty small amount :)
by aj76er
Fri Dec 08, 2017 1:03 pm
Forum: Personal Finance (Not Investing)
Topic: Ally Bank raises 11 month ($25k min) No Penalty CD from 1.5% to 1.6%
Replies: 25
Views: 3356

Re: Ally Bank raises 11 month ($25k min) No Penalty CD from 1.5% to 1.6%

At the short end of the yield curve there is no longer a premium for CDs over Treasuries. In fact, the 9mo Treasury actually yields more than the top-yielding brokered CD (1.62% vs 1.55%). The 1yr T-bill rate is now 1.7% ... I still hold some Ally no-penalty CDs because I like the principle stabilit...
by aj76er
Wed Dec 06, 2017 6:38 pm
Forum: Investing - Help with Personal Investments
Topic: Questions on Restructuring Portfolio and VTSAX vs FSTVX
Replies: 4
Views: 375

Re: Questions on Restructuring Portfolio and VTSAX vs FSTVX

FSTVX is a great fund, especially for tax-advantaged accounts. VTSAX is a great fund for both tax-advantaged and taxable accounts. VTSAX has the slight edge for taxable accounts due to the underlying ETF structure they rarely (if ever) need to distribute capital gains. In a tax-sheltered account, it...
by aj76er
Tue Dec 05, 2017 11:28 am
Forum: Investing - Theory, News & General
Topic: One answer to the Dividend stocks puzzle from behavioral finance
Replies: 166
Views: 8981

Re: One answer to the Dividend stocks puzzle from behavioral finance

And instead of a cash dividend, a stock dividend could be made which warps people's minds even more. :twisted: Some company ESPP plans are setup this way (including my own). I've also worked for companies that pay dividends as a "return on capital" and are not taxed. For the record, I'm not a fan o...
by aj76er
Tue Dec 05, 2017 11:22 am
Forum: Investing - Help with Personal Investments
Topic: Which Vanguard MMF?
Replies: 13
Views: 1560

Re: Which Vanguard MMF?

You could also link an FDIC insured Ally high-yield savings account directly to Vanguard brokerage. When using mutual funds, you can make same day buy's and sell's directly from/to an external account. I believe Ally savings is currently paying >1.2% yield, so pretty competitive with MMF
by aj76er
Sun Dec 03, 2017 11:41 pm
Forum: Investing - Theory, News & General
Topic: One answer to the Dividend stocks puzzle from behavioral finance
Replies: 166
Views: 8981

Re: One answer to the Dividend stocks puzzle from behavioral finance

Thanks for the reference, Livesoft! I've added to my reading list at the library :happy I notice a lot of folks on this forum aim for a 2-2.5% SWR, which is essentially the current dividend yield of global equities. Despite espousing a total return strategy, I wonder if there is a common psychology ...
by aj76er
Sat Dec 02, 2017 5:44 pm
Forum: Investing - Help with Personal Investments
Topic: Any Advantage to Purchasing Funds in Round Lots?
Replies: 9
Views: 521

Any Advantage to Purchasing Funds in Round Lots?

Every so often I see someone post how they always purchase shares in multiples of 100's (which I believe are called "round lots"). What are the reasons for doing this? Some possibilities I can think of are: 1. Easier record keeping and/or cost-basis tracking? 2. Better trade execution (for ETFs and ...
by aj76er
Mon Nov 27, 2017 9:44 pm
Forum: Investing - Help with Personal Investments
Topic: Using taxable accounts to maximize tax advantaged accounts
Replies: 24
Views: 1866

Re: Using taxable accounts to maximize tax advantaged accounts

A more conservative approach would be to simply lower your living expenses by the amount of dividends that your current taxable investments throw off. Then you can spend the dividends to suppliment living expenses and invest the difference as after-tax contributions to your 401k. This would be a ta...
by aj76er
Mon Nov 27, 2017 9:33 pm
Forum: Investing - Help with Personal Investments
Topic: Using taxable accounts to maximize tax advantaged accounts
Replies: 24
Views: 1866

Re: Using taxable accounts to maximize tax advantaged accounts

A more conservative approach would be to simply lower your living expenses by the amount of dividends that your current taxable investments throw off. Then you can spend the dividends to suppliment living expenses and invest the difference as after-tax contributions to your 401k. This would be a tax...
by aj76er
Mon Nov 27, 2017 9:19 pm
Forum: Investing - Theory, News & General
Topic: Valuation of EE Savings Bonds
Replies: 88
Views: 11140

Re: Valuation of EE Savings Bonds

Value (economics) "Economic value is a measure of the benefit provided by a good or service to an economic agent. It is generally measured relative to units of currency, and the interpretation is therefore 'what is the maximum amount of money a specific actor is willing and able to pay for the good...
by aj76er
Mon Nov 27, 2017 3:11 pm
Forum: Personal Finance (Not Investing)
Topic: Broker account security compendium thread
Replies: 28
Views: 1973

Re: Broker account security compendium thread

Sounds like it falls into the "one time code" category, kind of like the Authenticator solution Google has started pushing? It's better than an OTC that gets sent via text to your phone. With the Symantec VIP app, a random signature ID is generated once when you install the app that is unique to th...
by aj76er
Mon Nov 27, 2017 3:02 pm
Forum: Personal Finance (Not Investing)
Topic: Broker account security compendium thread
Replies: 28
Views: 1973

Re: Broker account security compendium thread

[*] I've enrolled my Fidelity 401(k) account in voice print technology, but it's unclear how that feature is used. Supposedly it replaces account password and PIN, but I still have to dial my password whenever I call in for something. Maybe that's a good thing (multiple layers of defense). Sign up ...
by aj76er
Sun Nov 26, 2017 2:58 pm
Forum: Personal Finance (Not Investing)
Topic: Broker account security compendium thread
Replies: 28
Views: 1973

Re: Broker account security compendium thread

[*] I've enrolled my Fidelity 401(k) account in voice print technology, but it's unclear how that feature is used. Supposedly it replaces account password and PIN, but I still have to dial my password whenever I call in for something. Maybe that's a good thing (multiple layers of defense). Sign up ...
by aj76er
Wed Nov 22, 2017 4:25 pm
Forum: Investing - Theory, News & General
Topic: Minimizing capital gains assuming FIFO basis
Replies: 26
Views: 1966

Re: Minimizing capital gains assuming FIFO basis

Use a separate fund to locate shares bought at a high Shiller CAPE or a high Price-to-earnings (PE) ratio? If you had two funds that were roughly similar (but were different enough to allow tax loss harvesting), maybe only invest in one of the funds when the Shiller CAPE or PE is above a particular...
by aj76er
Tue Nov 21, 2017 10:35 pm
Forum: Investing - Theory, News & General
Topic: Minimizing capital gains assuming FIFO basis
Replies: 26
Views: 1966

Re: Minimizing capital gains assuming FIFO basis

For DCA during an investors accumulation phase, what would be your fund rotation strategy? I could envision things like the following: Option #1: rotate between different similar funds for each scheduled purchase Option #2: stick to one fund for a period if time (e.g for a year), then start using th...
by aj76er
Mon Nov 20, 2017 9:19 pm
Forum: Investing - Theory, News & General
Topic: Valuation of EE Savings Bonds
Replies: 88
Views: 11140

Re: Valuation of EE Savings Bonds

I agree with willthrill. An EE-bond within a portfolio should be valued as what it is presently worth. For an EE-bond prior to maturity, this would be the face value plus the 0.1% interest accrued thus far. The 3.53% rate is simply a mental accounting for what the 20yr holding period returns; not a...
by aj76er
Mon Nov 20, 2017 9:02 pm
Forum: Investing - Theory, News & General
Topic: Valuation of EE Savings Bonds
Replies: 88
Views: 11140

Re: Valuation of EE Savings Bonds

I agree with willthrill. An EE-bond within a portfolio should be valued as what it is presently worth. For an EE-bond prior to maturity, this would be the face value plus the 0.1% interest accrued thus far. The 3.53% rate is simply a mental accounting for what the 20yr holding period returns; not a...
by aj76er
Mon Nov 20, 2017 12:47 am
Forum: Investing - Theory, News & General
Topic: Valuation of EE Savings Bonds
Replies: 88
Views: 11140

Re: Valuation of EE Savings Bonds

aristotelian wrote:
Sun Nov 19, 2017 8:16 pm
While I can't prove it because no market exists
I suppose you could devise a contractual agreement on the future claim of a noobvestor's EE-bond? In this manner, you would be creating a market; but until that happens, the value is simply what the bond redeems for at the U.S. treasury.
by aj76er
Mon Nov 20, 2017 12:32 am
Forum: Investing - Theory, News & General
Topic: Valuation of EE Savings Bonds
Replies: 88
Views: 11140

Re: Valuation of EE Savings Bonds

I was thinking about this again and I'm revising my answer from four years ago: on my spreadsheets, I have started adding 5% each year (over initial value). For instance, a $10,000 EE bond bought 5 years ago would be marked $1,250 on the spreadsheet. Why? Because these are the last things I would s...
by aj76er
Sun Nov 19, 2017 1:35 pm
Forum: Investing - Help with Personal Investments
Topic: Approximating Total World Stock to avoid exchange risk
Replies: 8
Views: 936

Re: Approximating Total World Stock to avoid exchange risk

Check out these articles: https://finpage.blog/2017/03/18/investing-in-the-world-part-1/ https://finpage.blog/2017/03/25/investing-in-the-world-part-2/ https://finpage.blog/2017/03/25/investing-in-the-world-part-3/ It discusses using VT and "tilting" to one's domestic market. It looks at performance...
by aj76er
Sun Nov 19, 2017 12:46 am
Forum: Investing - Help with Personal Investments
Topic: Vanguard Total Bond BND vs VBTLX (etf vs fund)?
Replies: 11
Views: 1133

Re: Vanguard Total Bond BND vs VBTLX (etf vs fund)?

It might be worth reading Bernstein's "The Four Pillars of Investing". Specifically, the example portfolio for an all taxable investor, named Taxable Ted.

If memory serves, for bonds he uses a combination of Treasuries, Muni Fund, and Short-term investment-grade corporate fund split evenly.
by aj76er
Thu Nov 16, 2017 5:08 pm
Forum: Investing - Help with Personal Investments
Topic: Help for semi retired friend with 8 figure savings
Replies: 68
Views: 5332

Re: Help for semi retired friend with 8 figure savings

If your friend can live off <=$500k per year, then the Buffet's 90/10 could be an option.

$27mil in S&P500
$3mil in T-bills

That will pay approx. $570k just in dividends and interest alone (pre-tax) at today's rates. And it doesn't get any simpler than that.
by aj76er
Thu Nov 09, 2017 11:33 pm
Forum: Investing - Help with Personal Investments
Topic: Where to allocate a $20,000 emergency fund
Replies: 17
Views: 2041

Re: Where to allocate a $20,000 emergency fund

FYI: I believe the Ally No penalty CD rate of 1.5% requires a minimum investment of 25k.
by aj76er
Mon Nov 06, 2017 3:50 pm
Forum: Investing - Theory, News & General
Topic: U.S. & International Allocation
Replies: 36
Views: 3445

Re: U.S. & International Allocation

I just got finished reading this series: https://finpage.blog/2017/03/18/investing-in-the-world-part-1/ https://finpage.blog/2017/03/25/investing-in-the-world-part-2/ https://finpage.blog/2017/03/25/investing-in-the-world-part-3/ Based on the data, equities split as 75% World + 25% Domestic held up...
by aj76er
Sun Nov 05, 2017 1:20 pm
Forum: Investing - Theory, News & General
Topic: Total World (VT, VTWSX) Tilt? Simplicity...
Replies: 35
Views: 4344

Re: Total World (VT, VTWSX) Tilt? Simplicity...

The following article discusses the technique of tilting a globally market portfolio to domestic equities:

https://finpage.blog/2017/03/25/investi ... ld-part-3/

A lot of analysis is done with 75% World + 25% Domestic tilt. Near the bottom, results are posted for 50% World + 50% Domestic.
by aj76er
Sun Nov 05, 2017 1:32 am
Forum: Investing - Theory, News & General
Topic: U.S. & International Allocation
Replies: 36
Views: 3445

Re: U.S. & International Allocation

I just got finished reading this series: https://finpage.blog/2017/03/18/investing-in-the-world-part-1/ https://finpage.blog/2017/03/25/investing-in-the-world-part-2/ https://finpage.blog/2017/03/25/investing-in-the-world-part-3/ Based on the data, equities split as 75% World + 25% Domestic held up ...
by aj76er
Sat Nov 04, 2017 10:57 pm
Forum: Investing - Theory, News & General
Topic: I-bond inflation irony?
Replies: 35
Views: 3682

Re: I-bond inflation irony?

Yes, the purchase limits do make them very difficult to match liabilities. Due to Inflation, $10k today doesn't pay for as much as it did a few years ago.

My cynical side says that by not raising purchase limits, the treasury is trying to slowly phase out IBonds
by aj76er
Mon Oct 30, 2017 5:11 pm
Forum: Investing - Theory, News & General
Topic: Bernstein's bond choice for cowards and ST IG
Replies: 28
Views: 3356

Re: Bernstein's bond choice for cowards and ST IG

How about building a ladder of 5yr FDIC insured CD's? Currently these have a premium of ~40pbs over treasuries and yield similar to AAA corporate bonds. By spacing the rungs 1 year apart, you are fairly protected a rising interest rate environment. Perhaps hold a slice (~10%) in inter term treasury ...
by aj76er
Sat Oct 28, 2017 1:15 am
Forum: Investing - Help with Personal Investments
Topic: Market Crash Defensive Portfolio
Replies: 30
Views: 3711

Re: Market Crash Defensive Portfolio

What about the Larry portfolio?
by aj76er
Wed Oct 25, 2017 2:21 am
Forum: Investing - Theory, News & General
Topic: How much international stock? A suggestion.
Replies: 228
Views: 45678

Re: How much international stock? A suggestion.

JustinR wrote:
Sat Oct 14, 2017 4:46 am
Where can I find the definitive source for the 46% figure?
Search for the following pdf's in google:
"FTSE Global All Cap ex US Index Fact Sheet"
"U.S. TOTAL MARKET CAP INDEX Fact Sheet"

In both, look for "market cap" numbers; add them up and then take the ratio of each to the sum.
by aj76er
Sun Oct 22, 2017 10:09 pm
Forum: Investing - Theory, News & General
Topic: Currency risk?
Replies: 42
Views: 2716

Re: Currency risk?

There is a reason why the Vanguard website lists VTSAX as a 4 and VTIAX as a 5 on a risk scale (from 1-5). Yeah, but is it currency risk? If so, how important? The VTIAX skews small cap, value, and emerging market - all of these factors carries a higher risk. Is currency the thing that shifts it fr...
by aj76er
Sun Oct 22, 2017 5:21 pm
Forum: Investing - Theory, News & General
Topic: Bill Sharpe's preferred portfolio
Replies: 84
Views: 16557

Re: Bill Sharpe's preferred portfolio

The September 30, end-of-quarter numbers are out. The total market-caps all went up, but the overall allocation percentages are still the same at 30/27/22/21. September 30 numbers in red. I'll update the wiki too when I get a minute. The June 30 end-of-quarter numbers are out for the indexes that S...
by aj76er
Sat Oct 21, 2017 3:13 pm
Forum: Investing - Theory, News & General
Topic: 30 year tips auction-thursday 10/19, yield 0.86%?
Replies: 47
Views: 4395

Re: 30 year tips auction-thursday 10/19, yield 0.86%?

Second question remains. What do the coupon reinvestments do to your definition? If you reinvest them you no longer have a LMP by your definition because the future annual cash flow is unknown. This is one reason why IBonds are nice vehicles, because they automatically reinvest interest payments an...
by aj76er
Fri Oct 20, 2017 6:09 pm
Forum: Investing - Theory, News & General
Topic: The Three-Fund Portfolio
Replies: 1923
Views: 1180720

Re: The Three-Fund Portfolio

If one treats their entire portfolio as “one bag,” therefore spreading the 3 fund portfolio across taxable, iras, 401ks etc, would one need to change anything if they are retiring early? I’m looking to retire at 55 but I currently keep all of my bonds in IRA’s and 401k’s, while using taxable accoun...
by aj76er
Thu Oct 19, 2017 7:29 pm
Forum: Investing - Theory, News & General
Topic: Currency risk?
Replies: 42
Views: 2716

Re: Currency risk?

As an interesting side note, currency risk is even at play when holding a US total market fund, like VTSAX, to some degree. This is because of the large amount of outsourcing done many US companies; especially in the tech sector (which is a large part of the US economy). At my own company (a mid-cap...
by aj76er
Thu Oct 19, 2017 1:30 pm
Forum: Investing - Theory, News & General
Topic: Currency risk?
Replies: 42
Views: 2716

Re: Currency risk?

In the long run, I see the currency risk as small enough for me to consider it a wash. My stock allocation is 60/40 US/International, and it doesn't bother me one bit. Just my two cents. Those close to or in retirement are much more sensitive to short-term currency movements than those with long in...
by aj76er
Tue Oct 17, 2017 2:55 pm
Forum: Investing - Theory, News & General
Topic: Currency risk?
Replies: 42
Views: 2716

Re: Currency risk?

Some interesting back-testing of the effects of holding international can now be done on www.portfoliocharts.com Take a typical allocation (40/20/35/5 of domestic stocks/foreign stocks/bonds/cash) and then look at the safe withdrawal rates across different countries and currencies. The addition of f...
by aj76er
Fri Oct 13, 2017 1:49 am
Forum: Personal Finance (Not Investing)
Topic: Anyone used Zelle?
Replies: 37
Views: 4171

Re: Anyone used Zelle?

For collecting rents, check out cozy.co
by aj76er
Thu Oct 12, 2017 1:17 pm
Forum: Investing - Help with Personal Investments
Topic: What to do with fairly large amount of money in "maybe" house fund?
Replies: 5
Views: 926

Re: What to do with fairly large amount of money in "maybe" house fund?

How much is this relative to the rest of your portfolio? If >10%, then it could produce a lot of drag due to opportunity cost. I'd probably invest it into your portfolio (e.g. buy stocks in taxable, sell stocks in tax-shelteted, buy bonds in tax-shelteted). When it comes time to withdraw, do the opp...
by aj76er
Fri Oct 06, 2017 11:36 am
Forum: Investing - Theory, News & General
Topic: Dividends vs. Capital Gains for Spending Needs?
Replies: 200
Views: 16042

Re: Dividends vs. Capital Gains for Spending Needs?

Dividend paying stocks and growth stocks fundamentally represent two different types of businesses. In the interest of diversification, I prefer to own both. The tax drag on dividends is unfortunate. During long bull markets in which we see 10-20% YoY growth, we tend to scoff at dividends. When a 20...
by aj76er
Wed Oct 04, 2017 11:02 pm
Forum: Personal Consumer Issues
Topic: Suggestions for organizing bookmarks
Replies: 9
Views: 627

Re: Suggestions for organizing bookmarks

For bookmarks I use chrome with sync. But I generally don't bookmark much anymore.

Now I mostly use Evernote. You can store entire pages, or just the URL (bookmark) for reference.
by aj76er
Sun Oct 01, 2017 12:55 am
Forum: Personal Finance (Not Investing)
Topic: Budgets: how do you track irregular income and expenses
Replies: 35
Views: 2588

Re: Budgets: how do you track irregular income and expenses

I have a spreadsheet to track expenses similar to other posters. I have expense categories in rows and months in columns. The last column sums all the expenses to show annual totals for each category. I also divide by 12 to show per month expenses (both actual and estimated which I fill in at the be...
by aj76er
Sat Sep 30, 2017 4:38 pm
Forum: Investing - Theory, News & General
Topic: Bill Sharpe's preferred portfolio
Replies: 84
Views: 16557

Re: Bill Sharpe's preferred portfolio

Just an FYI, I've started a wiki entry for Sharpe's WBS portfolio here: https://www.bogleheads.org/wiki/World_B ... _Portfolio

Feel free to make additions, updates, and/or corrections!

I've probably added all I care to do for the time being :)
by aj76er
Tue Sep 26, 2017 11:44 am
Forum: Personal Finance (Not Investing)
Topic: Fidelity Security
Replies: 66
Views: 6958

Re: Fidelity Security

Thus, next year, I may do a $1 non-deductible IRA to Fidelity just to have 2FA via Symantec VIP. I will then do the other $5,499 to Vanguard to do my backdoor Roth. You could also just do a taxable brokerage account and not fund it. Seems easier. I thought there was a $2500 minimum deposit for a ta...