Search found 6125 matches

by aristotelian
Wed Oct 16, 2019 12:37 pm
Forum: Investing - Theory, News & General
Topic: Improving Withdrawal Rates in a Low-Yield World
Replies: 21
Views: 850

Re: Improving Withdrawal Rates in a Low-Yield World

It seems to me that Low Vol stocks have the potential to improve withdrawal rates due to reducing sequence of returns risk, regardless of bond yields. I f one is going to adopt a tilting strategy, Low Vol seems to me the most compelling. I would point out that bonds also help reduce sequence risk a...
by aristotelian
Wed Oct 16, 2019 11:49 am
Forum: Investing - Theory, News & General
Topic: Improving Withdrawal Rates in a Low-Yield World
Replies: 21
Views: 850

Re: Improving Withdrawal Rates in a Low-Yield World

It seems to me that Low Vol stocks have the potential to improve withdrawal rates due to reducing sequence of returns risk, regardless of bond yields. If one is going to adopt a tilting strategy, Low Vol seems to me the most compelling. I would point out that bonds also help reduce sequence risk as ...
by aristotelian
Wed Oct 16, 2019 9:25 am
Forum: Personal Finance (Not Investing)
Topic: Taxation on inherited variable annuity
Replies: 17
Views: 555

Re: Taxation on inherited variable annuity

If you are the POD beneficiary, they would bypass the estate and go straight to you. Have you looked into transferring them into an Inherited IRA?
by aristotelian
Wed Oct 16, 2019 7:48 am
Forum: Personal Investments
Topic: How to handle 5M capital gain (post-IPO)
Replies: 58
Views: 4189

Re: How to handle 5M capital gain (post-IPO)

This is a case where it could be helpful to look at asset allocation in absolute as well as relative terms. You have enough stock to make yourself financially independent and take care of your family in perpetuity. Figure out that number (general rule is 25X expenses, 30X if you are conservative) an...
by aristotelian
Wed Oct 16, 2019 6:52 am
Forum: Investing - Theory, News & General
Topic: Edward Jones presentation at the senior center
Replies: 25
Views: 3301

Re: Edward Jones presentation at the senior center

It couldn't hurt to communicate your feedback to the center director. She may think twice about anything that might sound like elder abuse. The problem is, this populations is going to need some professional assistance, so you will need to recommend an alternative.
by aristotelian
Tue Oct 15, 2019 4:10 pm
Forum: Investing - Theory, News & General
Topic: Bank of America declares 'the end of the 60-40' standard portfolio
Replies: 40
Views: 6166

Re: Bank of America declares 'the end of the 60-40' standard portfolio

Earlier this year these same guys claimed "interest rates are rising". Who would want to own bonds when interest rates are going up? https://bankofamerica40.newshq.businesswire.com/system/files/2019_Rates.pdf Now they are saying "interest rates have hit bottom", who would want to own bonds when yiel...
by aristotelian
Tue Oct 15, 2019 1:02 pm
Forum: Personal Finance (Not Investing)
Topic: from a Community Foundation or my own checkbook
Replies: 9
Views: 526

Re: from a Community Foundation or my own checkbook

I would generally donate directly. The Community Foundation is just an intermediary and may take a cut. You would only want to give to the Community Foundation if you wanted to support a bunch of local nonprofits with the convenience of one check, and they would very much love an unrestricted donati...
by aristotelian
Mon Oct 14, 2019 7:02 pm
Forum: Investing - Theory, News & General
Topic: Schwab Fixed Monthly Fee CFP Advice
Replies: 24
Views: 2176

Re: Schwab Fixed Monthly Fee CFP Advice

typical.investor wrote:
Mon Oct 14, 2019 6:58 pm
aristotelian wrote:
Mon Oct 14, 2019 10:50 am

Yes, it is all there in the fine print, but it is fine print.
Um, yeah it’s also on their main landing page in big print.

Ok fine, you don’t like zero duration fixed income. It’s part of a barbell approach though.
I don't like earning 0.55% on up to 30% of my portfolio, no I do not.
by aristotelian
Mon Oct 14, 2019 4:46 pm
Forum: Personal Finance (Not Investing)
Topic: Is class action settlement taxable income?
Replies: 8
Views: 636

Re: Is class action settlement taxable income?

I've always thought settlements were not taxable. It does not fall under any of the categories within Miscellaneous Income, as far as I know.
by aristotelian
Mon Oct 14, 2019 2:19 pm
Forum: Personal Finance (Not Investing)
Topic: [Vanguard glitch] Your brokerage Consolidated Form 1099 is now available
Replies: 40
Views: 1811

Re: weird message from Vanguard re. new 1099

RustyShackleford wrote:
Mon Oct 14, 2019 2:17 pm
aristotelian wrote:
Mon Oct 14, 2019 2:13 pm
I wonder if it is supposed to be a reminder for people who are filing at the extension deadline?
I think so. I think I said so :-)
Great minds think alike!
by aristotelian
Mon Oct 14, 2019 2:13 pm
Forum: Personal Finance (Not Investing)
Topic: [Vanguard glitch] Your brokerage Consolidated Form 1099 is now available
Replies: 40
Views: 1811

Re: weird message from Vanguard re. new 1099

I got this too. I wonder if it is supposed to be a reminder for people who are filing at the extension deadline?

Did anyone actually get new forms?
by aristotelian
Mon Oct 14, 2019 1:42 pm
Forum: Investing - Theory, News & General
Topic: If Charles Schwab et al. drop commissions to zero, can we build our own index funds?
Replies: 41
Views: 3905

Re: If Charles Schwab et al. drop commissions to zero, can we build our own index funds?

Suppose that once you have gotten the knack of it you can place a stock trade in three minutes on a brokerage website. Suppose you've made your list of call-it-3,500, or 500, stock ticker symbols, and you have your spreadsheet set up to show you the number of shares you need to buy of each to equal...
by aristotelian
Mon Oct 14, 2019 10:50 am
Forum: Investing - Theory, News & General
Topic: Schwab Fixed Monthly Fee CFP Advice
Replies: 24
Views: 2176

Re: Schwab Fixed Monthly Fee CFP Advice

Schwab offsets cash with higher yielding, higher risk bonds to result in a no cost robo service with add on cost for advisors that results in a better fixed income return than Vanguard. They are upfront about this as well as upfront about their using that cash to offset the cost of the program. The...
by aristotelian
Mon Oct 14, 2019 8:46 am
Forum: Investing - Theory, News & General
Topic: Schwab Fixed Monthly Fee CFP Advice
Replies: 24
Views: 2176

Re: Schwab Fixed Monthly Fee CFP Advice

This is the key to the business model and the main reason for skepticism. I would not be surprised if the delta between market money market rates and Schwab's cash instruments comes close to the .3% Vanguard charges for PAS, but Schwab is more clever at hiding it. To be honest, it really hasn’t cos...
by aristotelian
Mon Oct 14, 2019 6:07 am
Forum: Investing - Theory, News & General
Topic: Schwab Fixed Monthly Fee CFP Advice
Replies: 24
Views: 2176

Re: Schwab Fixed Monthly Fee CFP Advice

Don't forget the point Zweig made in WSJ that Schwab requires at least 6% of assets be kept in their own bank savings account at 0.7% interest currently. Money markets paying 2.25%. Net, that 1.55% difference on 6% of assets costs equals about 0.10% loss of income. Schwab may recommend as high at 3...
by aristotelian
Sun Oct 13, 2019 7:00 pm
Forum: Personal Finance (Not Investing)
Topic: Should I invest in a ski in / ski out condo?
Replies: 50
Views: 4963

Re: Should I invest in a ski in / ski out condo?

Investments are those things in which you make money, so I don't think that it possible to invest in this kind of condo. At best it would be a speculation. In my opinion, this is a want, not a need, or an investment. I agree with your overall point, that you should be clear about whether you just w...
by aristotelian
Sun Oct 13, 2019 3:57 pm
Forum: Personal Investments
Topic: How to Invest in Friends Private Business
Replies: 19
Views: 1083

Re: How to Invest in Friends Private Business

If you are really going to do this, you should purchase the shares yourself. Not sure what goes into that. You probably need to talk to a small business lawyer and draw up a contract for an ownership interest in the business.
by aristotelian
Sun Oct 13, 2019 1:58 pm
Forum: Personal Investments
Topic: Extricating Myself From an Advisor and Investment Bank
Replies: 36
Views: 2218

Re: Extricating Myself From an Advisor and Investment Bank

This happened to me as well, although the funds were given to my minor kids rather than me. The advisor was helpful in transferring the assets but after that I didn't need him. As others have recommended, I simply called vanguard and filled out the forms per their instructions. I did let the advisor...
by aristotelian
Sun Oct 13, 2019 1:16 pm
Forum: Personal Finance (Not Investing)
Topic: What % and for how long do you have to save to replace income net ofsaving?
Replies: 17
Views: 2128

Re: What % and for how long do you have to save to replace income net ofsaving?

You might enjoy playing around with the Monte Carlo simulator on PortfolioVisualizer.com You can input various portfolios and have the historical data randomized to look at ranges of probabilistic outcomes from various situations of contributions and withdrawals. For example, say I was hoping to be...
by aristotelian
Sun Oct 13, 2019 7:56 am
Forum: Personal Investments
Topic: Money Market Decision
Replies: 32
Views: 2778

Re: Money Market Decision

Doctorofcredit has good options for savings and money market accounts, often with good bonuses. SIMPLE has $250 plus 2.15% interest.
by aristotelian
Sat Oct 12, 2019 5:50 pm
Forum: Investing - Theory, News & General
Topic: The Final, Definitive Thread on Brokerage Transfer Bonuses
Replies: 1918
Views: 315360

Re: The Final, Definitive Thread on Brokerage Transfer Bonuses

A Schwab rep told me that they could move Vanguard Admiral Funds over, but would not allow transactions (I.e. no sales). Surprising, frankly. I am not sure the rep was correct. Anyone have any experience in this ? That doesn't sound right to me either, but if it's true a workaround would be to call...
by aristotelian
Sat Oct 12, 2019 3:21 pm
Forum: Personal Finance (Not Investing)
Topic: Should I invest in a ski in / ski out condo?
Replies: 50
Views: 4963

Re: Should I invest in a ski in / ski out condo?

Wowee wow, that’s a lot of cash to drop on a place when you have easy alternatives in the area! Ski in/out is nice, but not 300k to 400k nice! Rent a place when you have the urge, you will be much better off without the headache of ownership. +1, you could rent an AirBnB many times per year before ...
by aristotelian
Sat Oct 12, 2019 1:36 pm
Forum: Investing - Theory, News & General
Topic: NTSX discussion: compared to VOO
Replies: 49
Views: 2187

Re: NTSX discussion: compared to VOO

The way I view NTSX is according to its asset allocation of 90% stock / 10% 6X leveraged Treasuries. VOO is 100% stock, which you can also consider it to be 90% stock + 10% stock. The 90% stock portion is the same for both funds, which only leaves the portion that is different. Would you prefer to ...
by aristotelian
Sat Oct 12, 2019 1:32 pm
Forum: Investing - Theory, News & General
Topic: Masters in business interview I did with Barry Ritholtz
Replies: 22
Views: 2718

Re: Masters in business interview I did with Barry Ritholtz

Wow, he has had some big time guests on that show. Congrats and can't wait to listen!
by aristotelian
Sat Oct 12, 2019 10:07 am
Forum: Personal Finance (Not Investing)
Topic: Offered 18-Month, 0% interest loan w/2% fee. Should I take the loan and invest or pass on the offer?
Replies: 68
Views: 4288

Re: Offered 18-Month, 0% interest loan w/2% fee. Should I take the loan and invest or pass on the offer?

What if in an existing IRA I sold $18k in bonds (BND), and bought the same amount in equities (VTI) In my taxable account I'd purchase $18k in BND using the loan. In month 18, I can sell BND to pay off the balance. Overall, my equity allocation rises and the borrowed money is in a less risky asset....
by aristotelian
Sat Oct 12, 2019 9:25 am
Forum: Personal Finance (Not Investing)
Topic: Need help !!! US or Canadian universities?
Replies: 56
Views: 3151

Re: Need help !!! US or Canadian universities?

Have him take out some loans to pay for a portion of his education. He may feel differently if he has some skin in the game. If not, it will be his choice and his responsibility but you will have done your part.
by aristotelian
Sat Oct 12, 2019 9:08 am
Forum: Personal Finance (Not Investing)
Topic: Offered 18-Month, 0% interest loan w/2% fee. Should I take the loan and invest or pass on the offer?
Replies: 68
Views: 4288

Re: Offered 18-Month, 0% interest loan w/2% fee. Should I take the loan and invest or pass on the offer?

I like the idea to use it to pay down the mortgage. I would not leverage debt to invest in stocks with a short timeframe. What if in an existing IRA I sold $18k in bonds (BND), and bought the same amount in equities (VTI) In my taxable account I'd purchase $18k in BND using the loan. In month 18, I...
by aristotelian
Sat Oct 12, 2019 7:51 am
Forum: Personal Finance (Not Investing)
Topic: Offered 18-Month, 0% interest loan w/2% fee. Should I take the loan and invest or pass on the offer?
Replies: 68
Views: 4288

Re: Offered 18-Month, 0% interest loan w/2% fee. Should I take the loan and invest or pass on the offer?

I like the idea to use it to pay down the mortgage. I would not leverage debt to invest in stocks with a short timeframe. What if in an existing IRA I sold $18k in bonds (BND), and bought the same amount in equities (VTI) In my taxable account I'd purchase $18k in BND using the loan. In month 18, I...
by aristotelian
Fri Oct 11, 2019 9:26 pm
Forum: Personal Finance (Not Investing)
Topic: Offered 18-Month, 0% interest loan w/2% fee. Should I take the loan and invest or pass on the offer?
Replies: 68
Views: 4288

Re: Offered 18-Month, 0% interest loan w/2% fee. Should I take the loan and invest or pass on the offer?

I like the idea to use it to pay down the mortgage. I would not leverage debt to invest in stocks with a short timeframe.
by aristotelian
Fri Oct 11, 2019 5:33 pm
Forum: Personal Investments
Topic: Can't do this alone-need a financial planner-please help!
Replies: 50
Views: 10119

Re: Can't do this alone-need a financial planner-please help!

Glad you are feeling more confident. Getting out of individual stocks in your retirement accounts is really simple. Sell them all and buy your preferred index funds. Don't worry about selling ones that are down, think of it as a trading the whole bucket for a better bucket. Hold all your bonds in yo...
by aristotelian
Fri Oct 11, 2019 3:26 pm
Forum: Investing - Theory, News & General
Topic: NTSX discussion: compared to VOO
Replies: 49
Views: 2187

Re: NTSX discussion: compared to VOO

It's not difficult to simulate, here's back to 2002 when IEF was created.....could go much further back, but I'm too lazy to do it right now: https://www.portfoliovisualizer.com/backtest-portfolio?s=y&timePeriod=2&startYear=1985&firstMonth=1&endYear=2019&lastMonth=12&calendarAligned=true&initialAmo...
by aristotelian
Fri Oct 11, 2019 3:00 pm
Forum: Investing - Theory, News & General
Topic: NTSX discussion: compared to VOO
Replies: 49
Views: 2187

Re: NTSX discussion: compared to VOO

Yes, the way that I view is NTSX is that it's essentially holding the SP500 with (a hopefully) slightly smaller volatility and slightly boosted return. The theoretical reason for the (expected) reduced volatility is because treasuries and the SP500 are zero or slightly negatively correlated. The re...
by aristotelian
Fri Oct 11, 2019 1:57 pm
Forum: Personal Investments
Topic: $0 Commission, where to trade now ?
Replies: 5
Views: 605

Re: $0 Commission, where to trade now ?

Setting aside the question of "trading", it really comes down to what perks and intangibles you value. -Fidelity has 0 ER mutual funds and cash management account -Schwab comes with bank account with free ATM withdrawals worldwide and 24/7 chat. -BofA Preferred Rewards gives you a big boost in credi...
by aristotelian
Fri Oct 11, 2019 11:32 am
Forum: Personal Finance (Not Investing)
Topic: extra $2000/month?
Replies: 14
Views: 2768

Re: extra $2000/month?

Chadnudj wrote:
Fri Oct 11, 2019 6:20 am


4. That being said, why not do both? $1k per month towards the rental mortgage, $1k per month towards taxable savings? That way, you get the best of both worlds.
This would be my approach. You are guaranteed to be at least partially right.
by aristotelian
Thu Oct 10, 2019 9:34 pm
Forum: Investing - Theory, News & General
Topic: Do You Think Vanguard Will Join The No Commission Party?
Replies: 40
Views: 4158

Re: Do You Think Vanguard Will Join The No Commission Party?

I think they'll join because it makes them look bad at first glance and will turn into a talking-point reason not to use Vanguard. Even though individual stocks and non-Vanguard ETFs aren't part of the Vanguard philosophy, I predict they will cave. They might not want that business. They have been ...
by aristotelian
Thu Oct 10, 2019 1:02 pm
Forum: Investing - Theory, News & General
Topic: If Charles Schwab et al. drop commissions to zero, can we build our own index funds?
Replies: 41
Views: 3905

Re: If Charles Schwab et al. drop commissions to zero, can we build our own index funds?

Check out M1 Finance. You do not even have to buy full shares, just create your pie and buy as you would an index fund. Only problem is limit of 100 stocks per account.
by aristotelian
Thu Oct 10, 2019 12:08 pm
Forum: Personal Investments
Topic: 500 Index v Tax-Managed Cap Appreciation Funds
Replies: 8
Views: 839

Re: 500 Index v Tax-Managed Cap Appreciation Funds

Follows the Russell 1000 but apparently screens out the 200 or so highest dividend payers. I like the approach but it ends up not making that much of a difference, bringing the dividend down only to 1.65%. Compare to VIGAX which yields only 1.07%. If I really wanted tax efficiency I would (and do) h...
by aristotelian
Thu Oct 10, 2019 10:42 am
Forum: Personal Finance (Not Investing)
Topic: Advantages of Vanguard over M1 Finance? + Buffett question
Replies: 25
Views: 1624

Re: Advantages of Vanguard over M1 Finance? + Buffett question

You could do a modified Buffett where you only buy when he buys.
by aristotelian
Thu Oct 10, 2019 10:12 am
Forum: Investing - Theory, News & General
Topic: RMD to Roth?
Replies: 16
Views: 1131

Re: RMD to Roth?

Do you have any earned income?
by aristotelian
Thu Oct 10, 2019 9:59 am
Forum: Investing - Theory, News & General
Topic: Fidelity to $0 Commissions
Replies: 83
Views: 7821

Re: Fidelity to $0 Commissions

NicB wrote:
Thu Oct 10, 2019 9:11 am
I'm curious -- how many Fidelity customers here are planning to switch from Fidelity TSM ETFs/MFs into VTI now?

I was one of those who traded all of my SPTM in my TDA HSA for VTI :D but don't know if I'll do the same in Fidelity...
I'm sticking with FZROX in my HSA!
by aristotelian
Thu Oct 10, 2019 9:41 am
Forum: Personal Finance (Not Investing)
Topic: Advantages of Vanguard over M1 Finance? + Buffett question
Replies: 25
Views: 1624

Re: Advantages of Vanguard over M1 Finance? + Buffett question

M1 does not have good cost basis tracking. If this is a taxable account, you would have to go through some hoops to use SpecID for managing taxes. As a new company, there is the possibility that M1 will raise fees or change its business model in the future. You just don't know. The best argument for...
by aristotelian
Thu Oct 10, 2019 8:44 am
Forum: Investing - Theory, News & General
Topic: When to start investing
Replies: 8
Views: 464

Re: When to start investing

If you are planning to invest in stocks, you should use money that you don't plan to need for at least 5 years, maybe longer.

This forum generally discourages attempting to pick individual stocks since diversified index funds are now available at negligible expense.
by aristotelian
Thu Oct 10, 2019 6:59 am
Forum: Personal Investments
Topic: What should I do about employer / industry risk in tech?
Replies: 36
Views: 2910

Re: What should I do about employer / industry risk in tech?

I would overweight Low Volatility and Value. I am partial to Low Vol but possibly as a result of recency bias.
by aristotelian
Wed Oct 09, 2019 6:25 pm
Forum: Personal Finance (Not Investing)
Topic: Withdrawing 401k money penalty free prior to 59 1/2
Replies: 18
Views: 2186

Re: Withdrawing 401k money penalty free prior to 59 1/2

Why would you want to withdraw from your 401k while working? Setting aside the wisdom of drawing down investments, you would also be paying tax at your marginal rate, defeating the purpose of having saved pre-tax. If that is your plan, you are indeed better off saving in taxable since the gains will...
by aristotelian
Wed Oct 09, 2019 2:07 pm
Forum: Personal Investments
Topic: Does transferring taxable account have bad tax consequences.
Replies: 22
Views: 1006

Re: Does transferring taxable account have bad tax consequences.

Hi guys, Thanks for the advice. I appreciate that! I am also transferring my Roth IRA, which too holds VTSAX. Should I first convert that to ETF also, or does it not matter for Roth? Thanks For Roth there would be no tax consequence if M1 liquidated VTSAX. The biggest issue with doing the transfer ...
by aristotelian
Wed Oct 09, 2019 2:03 pm
Forum: Personal Investments
Topic: Does transferring taxable account have bad tax consequences.
Replies: 22
Views: 1006

Re: Does transferring taxable account have bad tax consequences.

Call Vanguard and ask them to convert the shares to ETFs. No need to tell them why. Then you’ll be able to transfer those to M1 without tax consequence. Cheers M1 has kind of a weird platform. In order for this to work, I believe you would have to add VTI to your "pie" with a target %, otherwise th...
by aristotelian
Wed Oct 09, 2019 12:14 pm
Forum: Personal Investments
Topic: Where Does the Dividend Go?
Replies: 9
Views: 1315

Re: Where Does the Dividend Go?

Since the dividend hasn't been paid, it would be reflected in the market capitalization of the stock, which includes the company's cash assets. If you held through the dividend date, you would receive the dividend but a lower capital gain.
by aristotelian
Wed Oct 09, 2019 9:55 am
Forum: Personal Investments
Topic: SEP is Maxed... Now what???
Replies: 8
Views: 635

Re: SEP is Maxed... Now what???

You should do backdoor Roth if you aren't already. A Backdoor Roth is not practical with SEP IRA contributions of $56K. The real question is; "why are you using a SEP IRA and not a one-participant 401k?", That would facilitate Backdoor Roths. Do you have eligible non-(owner/spouse) employees? What ...
by aristotelian
Wed Oct 09, 2019 7:50 am
Forum: Personal Investments
Topic: SEP is Maxed... Now what???
Replies: 8
Views: 635

Re: SEP is Maxed... Now what???

Can you purchase any capital items for the business?

What kind of health insurance do you have? HSA could be an option.

You should do backdoor Roth if you aren't already.
by aristotelian
Tue Oct 08, 2019 9:43 pm
Forum: Investing - Theory, News & General
Topic: Rumor mill - Fidelity starting individual HSA's Nov. 15th [2018]
Replies: 1057
Views: 100550

Re: Rumor mill - Fidelity starting individual HSA's Nov. 15th [2018]

Does that mean I need to keep the HSABank account open to receive the contributions from my employer? In your experience, can I contribute to the Fidelity HSA account through the payroll on pre-tax basis? Alternatively, I assume that I can make after-tax contribution to Fidelity directly and claim ...