Search found 520 matches

by David Scubadiver
Thu Nov 16, 2017 6:44 am
Forum: Investing - Theory, News & General
Topic: The 4% rule DOES fail but still makes sense!
Replies: 195
Views: 22800

Re: The 4% rule DOES fail but still makes sense!

Da5id wrote: Tue Nov 14, 2017 2:39 pm
TheTimeLord wrote: Tue Nov 14, 2017 2:25 pm Still waiting for the first Boglehead thread to claim an negative withdrawal rate is unsafe because it causes an increase in taxes.

Distracting animated gif removed by Mod Mel. (They're not allowed.)
If it weren't for beating dead horses (4% rule, international or not, home ownership, etc) what would there be to talk about :) Truly nothing is new under the sun.
That is because the forum rules only permit discussing about actionable ideas and not the theoretical outcomes of proposed legislation.
by David Scubadiver
Wed Nov 15, 2017 3:58 pm
Forum: Personal Investments
Topic: 529 Plans - At what age do I move to conservative?
Replies: 24
Views: 3826

Re: 529 Plans - At what age do I move to conservative?

For others considering the same question, is it also important to consider your other investments? I have always viewed the 529 accounts as part of my overall investment portfolio. So, if I were inclined to become more conservative because I wanted to protect my tax advantaged money for education expenses, I would do so. But, I would likely make a counter-move outside the account (i.e., increasing risk in my taxable account while decreasing risk in the 529 account).
by David Scubadiver
Wed Nov 15, 2017 2:48 pm
Forum: Investing - Theory, News & General
Topic: Benefits of a FIFO world versus Tax Harvesting world
Replies: 5
Views: 1104

Re: Benefits of a FIFO world versus Tax Harvesting world

livesoft wrote: Wed Nov 15, 2017 1:54 pm Let me add a complication:

Perhaps in a FIFO world, I would transfer-in-kind old shares with gains to another financial institution leaving me with the newer shares with losses in place for tax-loss harvesting.
That would be an interesting issue that presumably would be resolved the same way wash sales are resolved. You answer the question, "Do you own shares at another institution which were acquired before the shares you sold?" If you sold the shares at a loss, it would constitute a wash sale (or its equivalent) and the basis could be adjusted at the new firm.

Of course, if loophole were left open I can envision great benefits to having multiple accounts. They don't even have to be held at another institution!
by David Scubadiver
Wed Nov 15, 2017 1:48 pm
Forum: Investing - Theory, News & General
Topic: Benefits of a FIFO world versus Tax Harvesting world
Replies: 5
Views: 1104

Benefits of a FIFO world versus Tax Harvesting world

So, in theory, one can imagine a world in which one is no longer permitted to select individual lots when making a sale. Were we to live in such a world, how would it change your situation? I think it might dramatically lower the value of Betterment, Wealthfront and FolioFN because tax loss harvesting suddenly becomes more difficult. I think it would also simplify my life because it would be one less thing to really worry about, since tax loss harvesting would suddenly become less beneficial since there is less to harvest if one is required to sell the first acquired shares. Query whether there is a way to profit on the potential of such a world, or a way to profit on the potential of such a world not coming to be (assuming the market were ...
by David Scubadiver
Wed Nov 15, 2017 12:53 pm
Forum: Investing - Theory, News & General
Topic: The 4% rule DOES fail but still makes sense!
Replies: 195
Views: 22800

Re: The 4% rule DOES fail but still makes sense!

For me it comes down to want versus need.
I want to be able to safely withdraw $125,000 a year, so I need $3,125,000 in starting assets.
When I hit my number, the market may tank and my starting assets at the end of day 1 are now $3,000,000.
Do I adjust my "want" to be a withdrawal of $120,000?
Answer: Yes, if I want to be conservative and do not have an actual need of $125,000.
Answer: No, if I have a need for $125,000.
by David Scubadiver
Wed Nov 15, 2017 11:27 am
Forum: Personal Investments
Topic: Schwab Intelligent Portfolios vs. WiseBanyan v. M1 Finance
Replies: 50
Views: 8840

Re: Schwab Intelligent Portfolios vs. WiseBanyan v. M1 Finance

I closed out the wealthfront accounts. Not very happy with how they handle that. They tell you that they send you a confirmation e-mail but don't tell you that you have to open it and confirm the sale transaction. That is a little beyond ridiculous. Then, they tell me that they can't issue the money to a "recently" added bank account even though it was added over a month ago (from which an investment was made at that time), but instead they need to do it "proportionately" to the two accounts I used, based upon the deposits received from each. I don't know if this would have happened if I had made only a partial withdrawal, but I won't be opening a new account to find out. I also sought to withdraw everything from the Sch...
by David Scubadiver
Wed Nov 15, 2017 9:51 am
Forum: Personal Finance (Not Investing)
Topic: Why pay cash for a car?
Replies: 250
Views: 41313

Re: Why pay cash for a car?

I've purchased three new cars in my life, and paid cash for each one. The first was a Nisan Murano and they took my personal check and I left with the car. The other two were Honda CRV's and I technically financed them because the dealer would not take a personal check. However, the finance company did and it was paid off on day 1.

Why I did this, I could not tell you. I expect I was not offered an ultra low rate and I had a enough cash on hand. But if it is really costing you close to nothing, and having the liquidity makes you sleep better than being debt free and being less liquid, then I see nothing wrong with taking out a car loan and enjoying small monthly payments versus one large painful one.
by David Scubadiver
Tue Nov 14, 2017 9:17 am
Forum: Personal Finance (Not Investing)
Topic: Quicken's future direction - a cause for concern
Replies: 516
Views: 99563

Re: Quicken's future direction - a cause for concern

I ordered my 2018 Quicken Premier 2 year from Amazon with an extended 3 months included. So 27 months before I will update again or discontinue Quicken altogether. When it works correctly Quicken is a great financial program. Currently we have money in 3 brokerage firms, HSA accounts and a few bank accounts. Quicken consolidates all these accounts and displays mutual funds and investments all on one page. You never have to go to 2-3 websites to view balances, dividends, gains/loss etc. It works for me. Keeping my fingers crossed that install will go smoothly. :thumbsup I ditched quicken in 2008 when I bought my Mac. I use moneydance 2017 as of last week. For the previous 5 years I used Moneydance 2012. I thought it was time to upgrade. :) ...
by David Scubadiver
Fri Nov 10, 2017 8:44 pm
Forum: Personal Finance (Not Investing)
Topic: Isn't it safer to NOT sign Credit card?
Replies: 97
Views: 10116

Re: Isn't it safer to not sign Credit card?

My cards all say “photo ID required” instead of a signature. Every 5 years or so a cashier asks for ID and I get indignant because I forgot I wrote that on the back of the card.
by David Scubadiver
Fri Nov 10, 2017 3:58 pm
Forum: Personal Investments
Topic: [Three-fund portfolio: Robo-adviser or 3 funds?]
Replies: 13
Views: 3847

Re: [Three-fund portfolio: Robo-adviser or 3 funds?]

You could do both -- open up an M1 Finance account (or FolioFN), create a 3 fund portfolio and use them for the balancing. Seems like overkill, but it is an option.
by David Scubadiver
Fri Nov 10, 2017 3:57 pm
Forum: Personal Investments
Topic: Bank Balance Sheet (M1 Finance Portfolio)
Replies: 23
Views: 2918

Re: Bank Balance Sheet (M1 Finance Portfolio)

I have some iBonds, but they are not exactly liquid for short term trading. I plan to use this more like a savings account to fund my check writing. If I did that with the iBonds I think i would eventually wind up liquidating something that resulted in a forfeiture of interest and otherwise wind up depleting my salable bonds. The portfolio is "dynamic" in the sense that if the banks change their holdings, so will the portfolio.

I will give it a go and see how it does.
by David Scubadiver
Fri Nov 10, 2017 3:12 pm
Forum: Personal Investments
Topic: Schwab Intelligent Portfolios vs. WiseBanyan v. M1 Finance
Replies: 50
Views: 8840

Re: Schwab Intelligent Portfolios vs. WiseBanyan v. M1 Finance

David, thank you for sharing your M1 experience. I have opened an account but haven't funded yet. A couple questions: 1- How detailed is the dashboard after funding? Does it have enough info to manually record number of shares/price in Quicken? 2- Have you tested the function to reduce (but not eliminate) an allocation yet? For example, say you have a pie for stock and it's 80/20 VTI/VXUS. But down the road you want to reduce foreign exposure and decide you want 90/10 VTI/VXUS. If I understand the system correctly, it shouldn't sell VXUS but rather increase allocation to VTI (via future contributions) until the stock pie is at a 90/10 ratio. Have you seen that aspect of the system work properly? Thank you again for sharing your M1 experien...
by David Scubadiver
Fri Nov 10, 2017 3:04 pm
Forum: Personal Investments
Topic: Bank Balance Sheet (M1 Finance Portfolio)
Replies: 23
Views: 2918

Re: Bank Balance Sheet (M1 Finance Portfolio)

I was considering using this like a savings/checking account. I don't care, if in the short term, it earns less than a savings account. But, over time, I am curious whether it would outperform. Accordingly, I would be buying and selling as paychecks come in and expenses need to be paid. I might try to limit the selling somewhat, and use it as a fund for "big expenses" like insurance premiums and real estate taxes, but still, it will be "raided" several times a year. Seems like you would have a bit of a capital gains mess trading it as a cash account. A lot of paperwork/tracking/income tax reporting for a fairly trivial amount of capital gains and losses. The broker takes care of all the reporting. I just type in various...
by David Scubadiver
Thu Nov 09, 2017 7:52 pm
Forum: Personal Investments
Topic: Bank Balance Sheet (M1 Finance Portfolio)
Replies: 23
Views: 2918

Re: Bank Balance Sheet (M1 Finance Portfolio)

Grt2bOutdoors wrote: Thu Nov 09, 2017 7:00 pm
David Scubadiver wrote: Thu Nov 09, 2017 5:21 pm “It measures the largest single drop from peak to bottom in the value of a portfolio (before a new peak is achieved).” So that is better than the worst year in the sense that IF i am adding to it regularly it won’t be down as much as the worst possible year. ?
No one knows what the future holds.
I meant, assuming one had purchased and sold regularly during the backtest period, it likely would have resulted in returns that were never as low as the worst year.
by David Scubadiver
Thu Nov 09, 2017 6:27 pm
Forum: Personal Investments
Topic: Bank Balance Sheet (M1 Finance Portfolio)
Replies: 23
Views: 2918

Re: Bank Balance Sheet (M1 Finance Portfolio)

Yet the worst year doesn’t reflect suxh awful returns.
by David Scubadiver
Thu Nov 09, 2017 5:21 pm
Forum: Personal Investments
Topic: Bank Balance Sheet (M1 Finance Portfolio)
Replies: 23
Views: 2918

Re: Bank Balance Sheet (M1 Finance Portfolio)

“It measures the largest single drop from peak to bottom in the value of a portfolio (before a new peak is achieved).” So that is better than the worst year in the sense that IF i am adding to it regularly it won’t be down as much as the worst possible year. ?
by David Scubadiver
Thu Nov 09, 2017 5:18 pm
Forum: Personal Investments
Topic: Bank Balance Sheet (M1 Finance Portfolio)
Replies: 23
Views: 2918

Re: Bank Balance Sheet (M1 Finance Portfolio)

Grt2bOutdoors wrote: Thu Nov 09, 2017 5:14 pm It’s expected deviation, it’s not maximum drawdown.
Max draw down of 4.2% means the most he account lost during the period? I’m ok with that.
by David Scubadiver
Thu Nov 09, 2017 5:12 pm
Forum: Personal Investments
Topic: Bank Balance Sheet (M1 Finance Portfolio)
Replies: 23
Views: 2918

Re: Bank Balance Sheet (M1 Finance Portfolio)

Why do you subtract standard deviation from Cagr rather than just look at the worst year to see how bad things get when risk enters the picture?

I am not surprised a 50% cash portfolio is less risky. I don’t care overly much if I lose a couple percentage points once in a while if on average I am going to do better.
by David Scubadiver
Thu Nov 09, 2017 4:02 pm
Forum: Personal Investments
Topic: Bank Balance Sheet (M1 Finance Portfolio)
Replies: 23
Views: 2918

Re: Bank Balance Sheet (M1 Finance Portfolio)

I was considering using this like a savings/checking account. I don't care, if in the short term, it earns less than a savings account. But, over time, I am curious whether it would outperform. Accordingly, I would be buying and selling as paychecks come in and expenses need to be paid. I might try to limit the selling somewhat, and use it as a fund for "big expenses" like insurance premiums and real estate taxes, but still, it will be "raided" several times a year. Have you used portfolio visualizer to compare your M1 Portfolio with that of say using 50% online savings account (cash) and that of a fund like say Vanguard Limited Term or Vanguard Intermediate Term Tax Exempt? I don't know how to account for a high yield ...
by David Scubadiver
Thu Nov 09, 2017 3:55 pm
Forum: Personal Investments
Topic: Bank Balance Sheet (M1 Finance Portfolio)
Replies: 23
Views: 2918

Re: Bank Balance Sheet (M1 Finance Portfolio)

I was considering using this like a savings/checking account. I don't care, if in the short term, it earns less than a savings account. But, over time, I am curious whether it would outperform. Accordingly, I would be buying and selling as paychecks come in and expenses need to be paid. I might try to limit the selling somewhat, and use it as a fund for "big expenses" like insurance premiums and real estate taxes, but still, it will be "raided" several times a year. Have you used portfolio visualizer to compare your M1 Portfolio with that of say using 50% online savings account (cash) and that of a fund like say Vanguard Limited Term or Vanguard Intermediate Term Tax Exempt? I don't know how to account for a high yield ...
by David Scubadiver
Thu Nov 09, 2017 7:47 am
Forum: Personal Investments
Topic: Bank Balance Sheet (M1 Finance Portfolio)
Replies: 23
Views: 2918

Re: Bank Balance Sheet (M1 Finance Portfolio)

I was considering using this like a savings/checking account. I don't care, if in the short term, it earns less than a savings account. But, over time, I am curious whether it would outperform. Accordingly, I would be buying and selling as paychecks come in and expenses need to be paid. I might try to limit the selling somewhat, and use it as a fund for "big expenses" like insurance premiums and real estate taxes, but still, it will be "raided" several times a year.
by David Scubadiver
Thu Nov 09, 2017 7:14 am
Forum: Personal Finance (Not Investing)
Topic: Term Life - Time to cancel?
Replies: 33
Views: 4967

Re: Term Life - Time to cancel?

How do you come to the $130,000 figure? The way I figured it, if $1M in coverage when I had nothing, was enough then all other things being equal one should not need the coverage when they have accumulated $1M.

Of course it is in the market so it won’t always be worth $1M. And, I had no kids when I purchased. So all is not equal.
by David Scubadiver
Thu Nov 09, 2017 7:04 am
Forum: Personal Investments
Topic: Bank Balance Sheet (M1 Finance Portfolio)
Replies: 23
Views: 2918

Re: Bank Balance Sheet (M1 Finance Portfolio)

Grt2bOutdoors wrote: Wed Nov 08, 2017 3:06 pm Use a mix of Short Term and Mid Term CD's instead - a rolling ladder coupled with Short Term Bond Index fund.
I would not use the MBS fund, it's duration will extend as interest rates rise and mortgage refinancing's fall off. As was noted, you aren't a bank, a bank has access to other tools besides MBS, they have access to Fed Funds overnight purchases, repos, short term treasuries, client deposits, debt issuance including commercial paper. Your proposed portfolio is not "safe" enough if your needs are near term.
That is what I figured. But liquidity is important to me and I am interested in reasonably bearing treasuries and cds while buying and selling short term. Using it like a reserve account.
by David Scubadiver
Thu Nov 09, 2017 5:27 am
Forum: Personal Finance (Not Investing)
Topic: Term Life - Time to cancel?
Replies: 33
Views: 4967

Re: Term Life - Time to cancel?

sco wrote: Wed Nov 08, 2017 10:03 pm That certainly isn't Term insurance, you've paid a lot over the years for that Dividend "discount" on a rather inflated rate.
It is renewable term. When I started, it was $642 a year for $767,000 of coverage.
by David Scubadiver
Wed Nov 08, 2017 4:10 pm
Forum: Personal Investments
Topic: What is a reasonable emergency fund for HI family?
Replies: 67
Views: 6127

Re: What is a reasonable emergency fund for HI family?

ResearchMed wrote: Wed Nov 08, 2017 3:54 pm EDIT: As for the bit you added while I was replying,

"In fact, *IF* I had $50,000 in emergency funds when the market dropped by 50%, you can be damned well certain that I'd throw it all in the market so the contingency of which you speak would simply be a form of market timing for myself."

yes, having that money to throw at very low prices... that was part of the reason I provided, that some people use.

RM
But that is not an emergency fund unless one considers the need to have dry powder to buy when the markets have crashed, an "emergency"
by David Scubadiver
Wed Nov 08, 2017 3:48 pm
Forum: Personal Investments
Topic: What is a reasonable emergency fund for HI family?
Replies: 67
Views: 6127

Re: What is a reasonable emergency fund for HI family?

KlangFool wrote: Wed Nov 08, 2017 2:54 pm OP,

In general, people with high income need more emergency fund. Not less. The simple reason is it usually took longer to find a new job. There is less opportunity out there.

KlangFool
I second that. When I nearly lost my job, after a year of searching, the best I could do was find a job where my take home pay would be 50% of what I was making, and that would have been without 401(k) contributions. It was brutal.
by David Scubadiver
Wed Nov 08, 2017 3:47 pm
Forum: Personal Investments
Topic: What is a reasonable emergency fund for HI family?
Replies: 67
Views: 6127

Re: What is a reasonable emergency fund for HI family?

My cash on hand fluctuates between $5,000 and $70,000. If I need more cash, I sell something. If the markets have been moving up, I incur a tax liability. If they have been moving down, I have a loss to set off against income or future gains. I don't understand why people with securities worry about how much cash they have when they can always get more. For many people, that would be because a time when money might be urgently needed on short notice *might* be a time when there is general financial stress (e.g. 2008++). IF one needed to sell at real lows, then there's no time for that money to recover (and no money for purchases at those lows, either). If I have $500,000 invested today, and need $50,000 tomorrow, it really doesn't matter t...
by David Scubadiver
Wed Nov 08, 2017 2:41 pm
Forum: Personal Investments
Topic: What is a reasonable emergency fund for HI family?
Replies: 67
Views: 6127

Re: What is a reasonable emergency fund for HI family?

I'm slowly putting some of my emergency funds in I Bonds. I plan on doing it in a similar fashion as building a CD ladder, though here I'll just put money into I Bonds every ~6 months, so that each new purchase carries the latest fixed rate. Once I've purchased enough to get over the 1-yr redemption ban, I'll shift purchasing decision to whether or not the fixed rate is higher than previously purchased bonds. Over time, I'll have ~1 month of expenses in a checking account (earning effectively 0%), 2 months of expenses in a high-yield savings (currently earning 1.3%, which, even before taxes, is less than inflation), and 3 months of expenses in the I-Bond ladder of sorts (currently at ~2.58% for I bonds bought starting 11/1/17). Last year I...
by David Scubadiver
Wed Nov 08, 2017 2:35 pm
Forum: Personal Investments
Topic: What is a reasonable emergency fund for HI family?
Replies: 67
Views: 6127

Re: What is a reasonable emergency fund for HI family?

My cash on hand fluctuates between $5,000 and $70,000.
If I need more cash, I sell something. If the markets have been moving up, I incur a tax liability. If they have been moving down, I have a loss to set off against income or future gains.

I don't understand why people with securities worry about how much cash they have when they can always get more.
by David Scubadiver
Wed Nov 08, 2017 2:27 pm
Forum: Investing - Theory, News & General
Topic: The Final, Definitive Thread on Brokerage Transfer Bonuses
Replies: 7737
Views: 1337008

Re: The Final, Definitive Thread on Brokerage Transfer Bonuses

I will repeat again for those who have not read it before, before you transfer an account, make sure you download all of you transactions. Otherwise, you are likely to find that you cannot do so once the account is transferred. I also encourage you to download your statements before, or immediately after, initiating a transfer.

If you are partial transferring, then I would print out the the cost-basis information and send it to yourself, with ticker symbols in the subject line. This is very helpful in the event the basis information does not transfer over properly.
by David Scubadiver
Wed Nov 08, 2017 2:21 pm
Forum: Personal Investments
Topic: Bank Balance Sheet (M1 Finance Portfolio)
Replies: 23
Views: 2918

Re: Bank Balance Sheet (M1 Finance Portfolio)

bberris wrote: Wed Nov 08, 2017 9:37 am You are not a bank.
Banks are highly regulated and restricted as to their investment risk. Even without regulation, they need to be very liquid to make settlements on loans.

We know nothing about you, except that you are not a bank. So you need to assess your own risk tolerance to get an investment plan. It would be an amazing coincidence to find that your risk tolerance would lead you to that exact portfolio.
The question was meant to solicit whether people considered it a low risk income producing portfolio, as it is being billed. I don't think it matters whether I am a bank or not. But, I would likely consider using the portfolio to house my emergency fund for whatever that may be worth.
by David Scubadiver
Wed Nov 08, 2017 9:22 am
Forum: Personal Finance (Not Investing)
Topic: Term Life - Time to cancel?
Replies: 33
Views: 4967

Re: Term Life - Time to cancel?

ivk5 wrote: Tue Nov 07, 2017 2:22 pm Shouldn't be thinking of insurance as an investment...

Annual renewable term like the OP and Chadnudj have strike me as a poor choice for most people. Every year the benefit gets smaller in real terms (inflation) but the premium increases, sometimes steeply.
Actually, with the COLA portion of the policy, I am keeping up with inflation. So while the premiums go up, so has the coverage.
by David Scubadiver
Wed Nov 08, 2017 6:51 am
Forum: Personal Investments
Topic: Bank Balance Sheet (M1 Finance Portfolio)
Replies: 23
Views: 2918

Bank Balance Sheet (M1 Finance Portfolio)

I am curious about your thoughts on the “Bank Balance Sheet” Portfolio, which seeks to replicate where banks keep their excess deposits that are not being loaned out.

It is billed as a low risk income producing portfolio currently yielding 2% with an ER of 0.10%. Its 1 year return is lower than a decent savings account though its 3 year return is 2.23%.

The portfolio currently is:
70% Vanguard Mortgage Backed Securities (VMBS)
17% IShares 7-10 year treasuries (IEF)
13% IShares National Muni Bond (MUB)
by David Scubadiver
Mon Nov 06, 2017 10:13 am
Forum: Personal Finance (Not Investing)
Topic: Term Life - Time to cancel?
Replies: 33
Views: 4967

Re: Term Life - Time to cancel?

letsgobobby wrote: Mon Nov 06, 2017 9:16 am Out of curiosity, why did you pay for guaranteed coverage til age 70? As an attorney it would seem unlikely you would have needed such extended coverage. That is indeed why your premium is so high - maintaining the option to keep insurance into your 60s will drive up the price.
I honestly have no memory of anything other than being stuck with a needle for a blood sample. Maybe I had no idea what kind of insurance I would need as I got older and just figured I could cancel if it got too expensive.
by David Scubadiver
Mon Nov 06, 2017 8:49 am
Forum: Personal Finance (Not Investing)
Topic: Term Life - Time to cancel?
Replies: 33
Views: 4967

Re: Term Life - Time to cancel?

letsgobobby wrote: Mon Nov 06, 2017 8:42 am something doesn’t add up. have you been paying $2500 per year for twenty years for one million in coverage? that is one reason you are having to second guess the costs - theyre very high. we also do not strictly need my term life any longer, but mine only costs me $750 per year for $1.5 million and i’ve had a few health problems so it’s a no-brainer to keep. expires in my mid to late 50s.
Actually, the coverage is split between a base and a cost of living increase. I believe the base coverage was 750,000. Every year I have the option to pay the extra for the COLA (I can't recall what that is, but will check when I get home...maybe I will just keep the base coverage and dump the cola as a compromise.
by David Scubadiver
Mon Nov 06, 2017 8:43 am
Forum: Personal Finance (Not Investing)
Topic: Term Life - Time to cancel?
Replies: 33
Views: 4967

Re: Term Life - Time to cancel?

They offer term and permanent insurance; the dividend is simply used as a credit against the premium.

I think the reason the premium was so high is because coverage was guaranteed until age 70.
by David Scubadiver
Mon Nov 06, 2017 8:12 am
Forum: Personal Finance (Not Investing)
Topic: Term Life - Time to cancel?
Replies: 33
Views: 4967

Re: Term Life - Time to cancel?

The policy is an annual renewable term policy at TIAA.
by David Scubadiver
Sun Nov 05, 2017 6:17 pm
Forum: Investing - Theory, News & General
Topic: The Three-Fund Portfolio
Replies: 3895
Views: 2424136

Re: The Three-Fund Portfolio

Given that trading commissions are going to zero and given texhnilofy’s ability to efficiently allocate purchases and sales so as to keep a portfolio at its desired allocation, what do people think about breaking up the equities into small, mid and large, value and growth (in proportion to their weighting’s in VTI) and breaking up the VXUS into its components and letting technology do the allocations when desired? David, I think it is a really bad idea to break-up a total market Three Fund Portfolio into its individual parts. It may make the advisor rich, but it will almost certainly add costs and complexity to the portfolio. Please read my "Simplicity" link below. Best wishes. Taylor Thanks, Taylor. My "Ideal Index" po...
by David Scubadiver
Sun Nov 05, 2017 2:51 pm
Forum: Personal Finance (Not Investing)
Topic: Term Life - Time to cancel?
Replies: 33
Views: 4967

Re: Term Life - Time to cancel?

TeamArgo wrote: Sun Nov 05, 2017 2:45 pm I cancelled my term life insurance in the same week I figured I could retire. If I have enough for my wife and I to live on for the rest of our lives, we have enough for her to live on it by herself. No sense in having her grieve in Hawaii or Italy when I am gone. :wink:
I feel like we are a little short, myself. But with one less mouth to feed if I should go into the dirt early, I think they'd be set!
by David Scubadiver
Sun Nov 05, 2017 2:50 pm
Forum: Personal Finance (Not Investing)
Topic: Term Life - Time to cancel?
Replies: 33
Views: 4967

Re: Term Life - Time to cancel?

The base premium is higher than what I am paying because of the dividend. But, I can't really say that I understand all of the premium numbers being shown. I only know what gets charged annually to the credit card. I understand it is tax free and that half our accounts are in tax-deferred and the other are in taxable accounts. There is the piper to be paid from distributions from both of those accounts, for sure. I don't even know if it is level term. I think it is. I am paying a couple hundred bucks more this year than last, but that may be because the dividend was smaller, or the COLA adjustment was higher. I have not gone to policygenius, but will check them out this week. I like TIAA, but if I can save a significant amount with someone ...
by David Scubadiver
Sun Nov 05, 2017 2:13 pm
Forum: Personal Finance (Not Investing)
Topic: Term Life - Time to cancel?
Replies: 33
Views: 4967

Term Life - Time to cancel?

So, I have been paying my premium since 1997 and I have not died yet. This year, the premium comes to $ 2,634.84 and delivers a benefit of $1,142,250.00. Will be turning 50 during the policy year. I have two young children (4 and 7) but after all of these years spent not dying, I have acquired and reduced my mortgage to $290,000 and have about $2.8 million in the stock market. I have been flirting with idea of retirement, though I will likely continue to work as long as they let me because the money is great, and I enjoy the job. I feel like I have enough to be "self-insured" at this point. Sure, it would be "nice" for my family to have an additional $1.1 million should pass away, but but if I don't (and, up to this poin...
by David Scubadiver
Sat Nov 04, 2017 6:11 am
Forum: Personal Finance (Not Investing)
Topic: This is why I'm glad I started investing at 23
Replies: 27
Views: 6162

Re: This is why I'm glad I started investing at 23

I never felt financially independent. But the past 18 months have certainly made me feel close. Knock on wood that it doesn’t go away as fast as it came.
by David Scubadiver
Thu Nov 02, 2017 1:08 pm
Forum: Personal Investments
Topic: Schwab Intelligent Portfolios vs. WiseBanyan v. M1 Finance
Replies: 50
Views: 8840

Re: Schwab Intelligent Portfolios vs. WiseBanyan v. M1 Finance

It is an interesting thing to have 3 stocks I'm invested in and deciding to add 13 more for diversification and then "rebalancing" among them. Whereas I previously had over $30,000 invested in one of the big three, this morning I now have $918 invested in it. Obviously, I will not do as well (or as poorly) if that stock makes a big move, but we'll see how I do picking stocks based on the Fool Advisor newsletter, now 14 of them more or less evenly weighted.
by David Scubadiver
Thu Nov 02, 2017 3:28 am
Forum: Personal Investments
Topic: Schwab Intelligent Portfolios vs. WiseBanyan v. M1 Finance
Replies: 50
Views: 8840

Re: Schwab Intelligent Portfolios vs. WiseBanyan v. M1 Finance

you would be paying to park assets that you’d be better off housing elsewhere. Yeah, after I posted it occurred to me that I could transfer the VXUS shares out. Duh :oops: But you should be wanting to have a percentage of VXUS in the portfolio and not a static number of shares, no? I'm not big on foreign. In my taxable account, I rather maintain purchase of domestic and phase out purchase of foreign stock as I start to decrease stock allocation and increase bond allocation. (I'll still have foreign in target date funds in HSA and IRAs. That's quite enough to satisfy me.) M1 looks like an easy way to automate change in allocation gradually and without my having to tinker. I'm blessed with more assets in taxable than tax-sheltered, so am loo...
by David Scubadiver
Wed Nov 01, 2017 6:36 pm
Forum: Personal Investments
Topic: Schwab Intelligent Portfolios vs. WiseBanyan v. M1 Finance
Replies: 50
Views: 8840

Re: Schwab Intelligent Portfolios vs. WiseBanyan v. M1 Finance

One of the things that impressed me is the speed with which M1 moves money. I set a transfer up in the morning, by the end of the day it is in the account and it is invested the following morning all before it shows as having been debited from my funding account. Not that this should be important, but it frustrates me when I have cash that I want invested and it takes 2-3 days for it to happen. They also make it very easy to link an account. No test deposits for linking the accounts I've used so far - just giving log-in credentials. That may make some people nervous. Not me. I am all about convenience.
by David Scubadiver
Wed Nov 01, 2017 5:29 pm
Forum: Personal Investments
Topic: Schwab Intelligent Portfolios vs. WiseBanyan v. M1 Finance
Replies: 50
Views: 8840

Re: Schwab Intelligent Portfolios vs. WiseBanyan v. M1 Finance

if you drop it to 10% it updates and just sits there waiting for the next investment and works as advertised. Thank you, David, for the detailed response. I'm curious about something else. Say I want to hold on to an asset but not add to it. For example, say I want to keep the amount of foreign (VXUS) I have but not purchase any more. As I understand it, I would have to change my VXUS allocation to 1% to avoid sale. What happens when I want to make a withdrawal in the future? Is there a way to direct the system not to sell off VXUS down to its 1% allocation? Or would I have to remember to bump up the VXUS allocation before the withdrawal, then lower it again to 1% after the withdrawal? The system is really designed against that, and you wo...
by David Scubadiver
Wed Nov 01, 2017 5:24 pm
Forum: Personal Investments
Topic: Schwab Intelligent Portfolios vs. WiseBanyan v. M1 Finance
Replies: 50
Views: 8840

Re: Schwab Intelligent Portfolios vs. WiseBanyan v. M1 Finance

Nate79 wrote: Wed Nov 01, 2017 4:36 pm I opened a Schwab account this week, mostly to use them for checking account and am going to try out their Intelligent Portfolio. I'm looking to see how the automatic TLH works. Their customer service so far has been very impressive. Their general website is definitely not top of the line but the Intelligent portfolio site is pretty slick.
I have that and my only complaints are the cash feature and being unable to choose my portfolio. Their choices are not what I would pick. That does not mean they are worse than what I would pick though!
by David Scubadiver
Wed Nov 01, 2017 12:01 pm
Forum: Personal Investments
Topic: Schwab Intelligent Portfolios vs. WiseBanyan v. M1 Finance
Replies: 50
Views: 8840

Re: Schwab Intelligent Portfolios vs. WiseBanyan v. M1 Finance

If you are willing to use M1 (with no TLH) then did you consider Folio or Motif? Folio's unlimited service is $290/yr. This will allow you to create your own Folios = Motifs = Pies and trade/rebalance. Your cost will breakeven with M1 at $128,334 and be cheaper thereafter. Folio does do Window Trades which may or may not be best execution but they also allow fractional shares. Plus, I believe you can automate your deposits and do Buy Only Rebalancing: https://www.folioinvesting.com/folioinvesting/brokerage-features/manage-folios/ I did consider Folio. The break even point is $193,333 (290/.15%). Folio has been around a long time and should have taken over the robo-market by now, but for some reason they still lack an app and their site is ...
by David Scubadiver
Wed Nov 01, 2017 11:45 am
Forum: Personal Investments
Topic: Schwab Intelligent Portfolios vs. WiseBanyan v. M1 Finance
Replies: 50
Views: 8840

Re: Schwab Intelligent Portfolios vs. WiseBanyan v. M1 Finance

1- How detailed is the dashboard after funding? Does it have enough info to manually record number of shares/price in Quicken? You get all of the information needed to input the shares purchased and the price at which they are purchased. It is not immediately apparent from the dashboard where this information is to be found, but it resides in at least two places: Activity/Trade Confirms gives you a pdf of your trade confirms for any given day. And, Activity/Trading gives you your recent trading history so that you can get the information before the trade confirm for the day is available. You just click on the day, then click on "buys" or "sales" to see what was done. They are also going to improve the dashboard in the n...
by David Scubadiver
Wed Nov 01, 2017 8:42 am
Forum: Personal Investments
Topic: My 401k is almost all cash now. 1/2 Mil
Replies: 89
Views: 12657

Re: My 401k is almost all cash now. 1/2 Mil

My favorite market timing game, takes only a minute or two to play.

https://qz.com/487013/this-game-will-sh ... right-now/