Search found 4596 matches

by MotoTrojan
Tue Jun 25, 2019 11:48 am
Forum: Personal Investments
Topic: FED cutting rates affect on 3 year CD
Replies: 9
Views: 685

Re: FED cutting rates affect on 3 year CD

I agree that no one knows when recession will start, but the FED is pretty much set on cutting rates starting in July. Is it? If so, and everyone knows this will happen, don’t you think banks have already accounted for this in their forward rates? You are trying to make a bet on future interest rat...
by MotoTrojan
Tue Jun 25, 2019 11:09 am
Forum: Personal Investments
Topic: Tax Loss Harvesting and Teaching Your Spouse Investing
Replies: 4
Views: 305

Re: Tax Loss Harvesting and Teaching Your Spouse Investing

Just buy at a market low and you’ll never have to worry about it ;). TLH would be the last thing I’d worry about personally. The gain is so marginal compared to tax-efficient fund placement and withdrawal strategies, asset allocation, etc. I would not include TLH in my plan and I hope my taxable ass...
by MotoTrojan
Tue Jun 25, 2019 11:03 am
Forum: Personal Investments
Topic: FED cutting rates affect on 3 year CD
Replies: 9
Views: 685

Re: FED cutting rates affect on 3 year CD

If you are sure we are heading for a recession then cash out your CD and short the market. Or buy a long term bond/fund so you’ll make some return if yields go down further.

I’m staying at ~100/0.
by MotoTrojan
Mon Jun 24, 2019 10:37 pm
Forum: Investing - Theory, News & General
Topic: HEDGEFUNDIE's excellent adventure [risk parity strategy using 3x leveraged ETFs]
Replies: 2198
Views: 160548

Re: HEDGEFUNDIE's excellent adventure [risk parity strategy using 3x leveraged ETFs]

hdas wrote:
Mon Jun 24, 2019 10:23 pm
MotoTrojan wrote:
Mon Jun 24, 2019 7:19 pm
What would keep me from doing this daily in my Roth ?
The vig you pay associated with the atrocious rebalance scheme that M1 employs.
Vig? More info on this atrocious scheme?
by MotoTrojan
Mon Jun 24, 2019 10:20 pm
Forum: Investing - Theory, News & General
Topic: HEDGEFUNDIE's excellent adventure [risk parity strategy using 3x leveraged ETFs]
Replies: 2198
Views: 160548

Re: HEDGEFUNDIE's excellent adventure [risk parity strategy using 3x leveraged ETFs]

Daily rebalancing performed best, usually about 1 to 2 percentage points better than the biweekly to quarterly cohorts. This is an area where a fund might offer a real systematic advantage, if they could efficiently perform the daily rebalancing trades. Bingo! :greedy What would keep me from doing ...
by MotoTrojan
Mon Jun 24, 2019 7:34 pm
Forum: Personal Investments
Topic: Index fund (voo) returns?
Replies: 19
Views: 1110

Re: Index fund (voo) returns?

You may be retiring in 15-20 years but your horizon is even longer as you’ll be spending through a 30+ year retirement. I’d let this ride but keep learning so you can understand market dynamics and adjust your AA to incorporate international equity and/or bonds when/if appropriate. Good luck finding...
by MotoTrojan
Mon Jun 24, 2019 7:28 pm
Forum: Personal Investments
Topic: VWETX vs. VBTLX
Replies: 5
Views: 517

Re: VWETX vs. VBTLX

I agree with above, I wouldn’t hold corporates unless in Total Bond. Make sure you understand the impact of the longer term though.
by MotoTrojan
Mon Jun 24, 2019 7:25 pm
Forum: Personal Finance (Not Investing)
Topic: How much to budget for a week long vacation for 2?
Replies: 91
Views: 6313

Re: How much to budget for a week long vacation for 2?

International travel has been $800-900/day for 2 on average but we like to eat/drink (often all inclusive).

Lowest was $470/day for an amazing 6 night all inclusive trip during off season.
by MotoTrojan
Mon Jun 24, 2019 7:19 pm
Forum: Investing - Theory, News & General
Topic: HEDGEFUNDIE's excellent adventure [risk parity strategy using 3x leveraged ETFs]
Replies: 2198
Views: 160548

Re: HEDGEFUNDIE's excellent adventure [risk parity strategy using 3x leveraged ETFs]

Daily rebalancing performed best, usually about 1 to 2 percentage points better than the biweekly to quarterly cohorts. This is an area where a fund might offer a real systematic advantage, if they could efficiently perform the daily rebalancing trades. Bingo! :greedy What would keep me from doing ...
by MotoTrojan
Mon Jun 24, 2019 4:04 pm
Forum: Investing - Theory, News & General
Topic: HEDGEFUNDIE's excellent adventure [risk parity strategy using 3x leveraged ETFs]
Replies: 2198
Views: 160548

Re: HEDGEFUNDIE's excellent adventure [risk parity strategy using 3x leveraged ETFs]

I'm wondering if someone can help me out. The talk of the variants of the naive risk parity portfolio made me want to look a bit further into the details of my portfolio. If I take the data from July 30 2002 for SPY and TLT, I get annualized volatility of 0.184 and 0.132. The correlation is -0.405....
by MotoTrojan
Mon Jun 24, 2019 4:03 pm
Forum: Investing - Theory, News & General
Topic: Discrepancy between Matketwatch and Fidelity
Replies: 21
Views: 1101

Re: Discrepancy between Matketwatch and Fidelity

I haven't checked yet, but likely Marketwatch is giving you an up to date daily quote, Fidelity is only updated to the last calendar month (as shown in your picture). EDIT: So I checked on Morningstar see the difference between 5/31/2018 - 5/31/2019 and 06/24/2018 - 06/23/2019 Hmm, so based on abou...
by MotoTrojan
Mon Jun 24, 2019 2:45 pm
Forum: Investing - Theory, News & General
Topic: Discrepancy between Matketwatch and Fidelity
Replies: 21
Views: 1101

Re: Discrepancy between Matketwatch and Fidelity

I haven't checked yet, but likely Marketwatch is giving you an up to date daily quote, Fidelity is only updated to the last calendar month (as shown in your picture). EDIT: So I checked on Morningstar see the difference between 5/31/2018 - 5/31/2019 and 06/24/2018 - 06/23/2019 I haven't checked yet...
by MotoTrojan
Mon Jun 24, 2019 12:29 pm
Forum: Investing - Theory, News & General
Topic: Higher risk ETF
Replies: 11
Views: 528

Re: Higher risk ETF

How about ETF with 2x or 3x leverage? Anyway, if you believe capital asset pricing model and mean variance optimization, the most efficient portfolio is the full market, whose leverage you just scale if you want to change your risk exposure. Daily rebalanced leveraged ETFs can work well in a balanc...
by MotoTrojan
Mon Jun 24, 2019 11:44 am
Forum: Personal Investments
Topic: Can I fund all 4 tax advantage accounts?
Replies: 10
Views: 1194

Re: Can I fund all 4 tax advantage accounts?

Not quite. You would only be able to do "employer" contributions on the contractor income. Also, you can do Roth 401k but that doesn't mean you should. Are you low income? +1 on diving deeper into your heavy Roth. If you can even think about funding all of these (even ones you aren’t allowed to) I’...
by MotoTrojan
Mon Jun 24, 2019 11:37 am
Forum: Investing - Theory, News & General
Topic: Discrepancy between Matketwatch and Fidelity
Replies: 21
Views: 1101

Re: Discrepancy between Matketwatch and Fidelity

I haven't checked yet, but likely Marketwatch is giving you an up to date daily quote, Fidelity is only updated to the last calendar month (as shown in your picture). EDIT: So I checked on Morningstar see the difference between 5/31/2018 - 5/31/2019 and 06/24/2018 - 06/23/2019 Hmm, so based on abou...
by MotoTrojan
Mon Jun 24, 2019 10:50 am
Forum: Investing - Theory, News & General
Topic: HEDGEFUNDIE's excellent adventure [risk parity strategy using 3x leveraged ETFs]
Replies: 2198
Views: 160548

Re: HEDGEFUNDIE's excellent adventure [risk parity strategy using 3x leveraged ETFs]

columbia wrote:
Mon Jun 24, 2019 10:31 am
Today is a free lunch day for this approach.
Huh? Nothing extraordinary today.
by MotoTrojan
Mon Jun 24, 2019 10:16 am
Forum: Investing - Theory, News & General
Topic: Higher risk ETF
Replies: 11
Views: 528

Re: Higher risk ETF

How about ETF with 2x or 3x leverage? Anyway, if you believe capital asset pricing model and mean variance optimization, the most efficient portfolio is the full market, whose leverage you just scale if you want to change your risk exposure. Daily rebalanced leveraged ETFs can work well in a balanc...
by MotoTrojan
Mon Jun 24, 2019 10:02 am
Forum: Investing - Theory, News & General
Topic: HEDGEFUNDIE's excellent adventure [risk parity strategy using 3x leveraged ETFs]
Replies: 2198
Views: 160548

Re: HEDGEFUNDIE's excellent adventure [risk parity strategy using 3x leveraged ETFs]

How far back does the data you used go? 1955 or 1987? Only to 1986. The data linked for 1955 to 1986 is monthly instead of daily, which doesn't help for this approach. I don't know if the monthly data were summarized from a daily set or not. I'd love to see the daily data. No daily data but they di...
by MotoTrojan
Mon Jun 24, 2019 9:57 am
Forum: Personal Investments
Topic: Vanguard reduced dividends on VTSAX
Replies: 9
Views: 1668

Re: Vanguard reduced dividends on VTSAX

Dividends aren’t free money.
by MotoTrojan
Mon Jun 24, 2019 1:32 am
Forum: Investing - Theory, News & General
Topic: HEDGEFUNDIE's excellent adventure [risk parity strategy using 3x leveraged ETFs]
Replies: 2198
Views: 160548

Re: HEDGEFUNDIE's excellent adventure [risk parity strategy using 3x leveraged ETFs]

Thank you all for the input on balancing. I have been lurking through this thread for about a week, I am considering joining this strategy (experiment?) with a 25 year horizon, balancing quarterly, fully prepared to loose most or all, using an M1 Roth IRA. I just have a few more pieces of data to m...
by MotoTrojan
Sun Jun 23, 2019 6:40 pm
Forum: Personal Investments
Topic: 75% investments in taxable accounts
Replies: 3
Views: 624

Re: 75% investments in taxable accounts

Doubling your portfolio in a nominal sense over a decade requires 7% after-tax returns (dividend drag). While possible, you can’t bank on that. I’d also have a plan for tax efficient fixed income depending on your planned AA.
by MotoTrojan
Sun Jun 23, 2019 5:15 pm
Forum: Personal Investments
Topic: I don't understand which accounts to place investments in
Replies: 6
Views: 725

Re: I don't understand which accounts to place investments in

Until/unless you have significant taxable assets I wouldn’t hesitate to use a Target Retirement in both the t401k and Roth, assuming the 401k expense ratio isn’t unreasonable, in which case there’s a stronger reason to manually control a 3 fund.
by MotoTrojan
Sun Jun 23, 2019 4:04 pm
Forum: Investing - Theory, News & General
Topic: HEDGEFUNDIE's excellent adventure [risk parity strategy using 3x leveraged ETFs]
Replies: 2198
Views: 160548

Re: HEDGEFUNDIE's excellent adventure [risk parity strategy using 3x leveraged ETFs]

Will you confine yourself to quarterly rebalances no matter what happens? That’s what I plan to do. Lets say alien black swan muppets instigate a crash and over a series of days (or weeks) your UPRO gets severly punished, to where your ratio ends up being less than 10% UPRO. “Alien black swan muppe...
by MotoTrojan
Sun Jun 23, 2019 4:02 pm
Forum: Investing - Theory, News & General
Topic: HEDGEFUNDIE's excellent adventure [risk parity strategy using 3x leveraged ETFs]
Replies: 2198
Views: 160548

Re: HEDGEFUNDIE's excellent adventure [risk parity strategy using 3x leveraged ETFs]

No, inverse volatility doesn't account for correlations, but risk parity does. If you are only holding two assets, then they are effectively the same however. Can you elaborate on how risk parity accounts for correlations? Is it not just adjusting weight so each asset is individually contributing a...
by MotoTrojan
Sun Jun 23, 2019 3:12 pm
Forum: Investing - Theory, News & General
Topic: HEDGEFUNDIE's excellent adventure [risk parity strategy using 3x leveraged ETFs]
Replies: 2198
Views: 160548

Re: HEDGEFUNDIE's excellent adventure [risk parity strategy using 3x leveraged ETFs]

New user, thank you very much to OP and company for this thread. I didn't see this question asked (forgive me if it has been): Will you confine yourself to quarterly rebalances no matter what happens? Lets say alien black swan muppets instigate a crash and over a series of days (or weeks) your UPRO...
by MotoTrojan
Sun Jun 23, 2019 2:44 pm
Forum: Investing - Theory, News & General
Topic: and ETF of ETFs?
Replies: 7
Views: 707

Re: and ETF of ETFs?

How many pie slices does M1 allow :twisted:
by MotoTrojan
Sun Jun 23, 2019 11:39 am
Forum: Investing - Theory, News & General
Topic: HEDGEFUNDIE's excellent adventure [risk parity strategy using 3x leveraged ETFs]
Replies: 2198
Views: 160548

Re: HEDGEFUNDIE's excellent adventure [risk parity strategy using 3x leveraged ETFs]

Are risk parity and inverse volatility the same things? No, inverse volatility doesn't account for correlations, but risk parity does. If you are only holding two assets, then they are effectively the same however. Can you elaborate on how risk parity accounts for correlations? Is it not just adjus...
by MotoTrojan
Sun Jun 23, 2019 11:24 am
Forum: Personal Investments
Topic: Who should I open my taxable account with?
Replies: 25
Views: 1933

Re: Who should I open my taxable account with?

You have been fooled by the zero fee marketing machine. What if the performance was 0.05% lower than a fund that you pay 0.05% expense ratio for? What if the performance is the same, but you pay 0.15% more in taxes every year on the zero-fee funds? This is not true. Did livesoft make any statements...
by MotoTrojan
Sun Jun 23, 2019 1:30 am
Forum: Investing - Theory, News & General
Topic: HEDGEFUNDIE's excellent adventure [risk parity strategy using 3x leveraged ETFs]
Replies: 2198
Views: 160548

Re: HEDGEFUNDIE's excellent adventure [risk parity strategy using 3x leveraged ETFs]

Interesting read comparing target volatility management results for different asset classes. Works much better with equities and risk assets than bonds/commodities. https://poseidon01.ssrn.com/delivery.php?ID=5610291221151131270221020930050760850250240690390340311270230850680821140950810671020170001...
by MotoTrojan
Sun Jun 23, 2019 12:06 am
Forum: Personal Investments
Topic: Asset Allocation Question.
Replies: 14
Views: 1391

Re: Asset Allocation Question.

My way of looking at this; AA is based on your ability, willingness, and need to take risk. Your ability goes up after this as your debt/required cash flow is now drastically reduced. Thus maintaining the same equity exposure is reasonable. I had not checked responses for a couple days and came bac...
by MotoTrojan
Sun Jun 23, 2019 12:01 am
Forum: Investing - Theory, News & General
Topic: HEDGEFUNDIE's excellent adventure [risk parity strategy using 3x leveraged ETFs]
Replies: 2198
Views: 160548

Re: HEDGEFUNDIE's excellent adventure [risk parity strategy using 3x leveraged ETFs]

Are risk parity and inverse volatility the same things? No, inverse volatility doesn't account for correlations, but risk parity does. If you are only holding two assets, then they are effectively the same however. Can you elaborate on how risk parity accounts for correlations? Is it not just adjus...
by MotoTrojan
Sat Jun 22, 2019 7:24 pm
Forum: Investing - Theory, News & General
Topic: HEDGEFUNDIE's excellent adventure [risk parity strategy using 3x leveraged ETFs]
Replies: 2198
Views: 160548

Re: HEDGEFUNDIE's excellent adventure [risk parity strategy using 3x leveraged ETFs]

If both proportionally increase volatility compared to historical norms I’m right back at 40/60, where I’m fine being anyways. Yes I plan to rebalance monthly and use PV to determine weights (could go manually if it’s not functional in future). I thought PV only has end of month numbers. How could ...
by MotoTrojan
Sat Jun 22, 2019 6:25 pm
Forum: Investing - Theory, News & General
Topic: HEDGEFUNDIE's excellent adventure [risk parity strategy using 3x leveraged ETFs]
Replies: 2198
Views: 160548

Re: HEDGEFUNDIE's excellent adventure [risk parity strategy using 3x leveraged ETFs]

Thank you to @HEDGEFUNDIE and those who are willing to share their thoughts and strategies. Any thoughts on constructing a portfolio which mimic's Taleb's Black Swan set up where the majority of the portfolio is in ultra-safe positions and a very minor part which has tremendous upside when the over...
by MotoTrojan
Sat Jun 22, 2019 1:29 pm
Forum: Investing - Theory, News & General
Topic: HEDGEFUNDIE's excellent adventure [risk parity strategy using 3x leveraged ETFs]
Replies: 2198
Views: 160548

Re: HEDGEFUNDIE's excellent adventure [risk parity strategy using 3x leveraged ETFs]

Cagr since Jan 2018 was 10.68% for inverse volatility versus 10.01% for the original. Can't catch every zig. We just hope for a larger fraction of good guesses... As I noted above, a very good argument could be made to diversify your implementation strategy, maybe putting 1/3 in the OP's fixed 40/6...
by MotoTrojan
Sat Jun 22, 2019 1:00 pm
Forum: Investing - Theory, News & General
Topic: Larry Swedroe: Volatility Targeting Improves Risk Adjusted Returns
Replies: 25
Views: 1625

Re: Larry Swedroe: Volatility Targeting Improves Risk Adjusted Returns

I'm a bit surprised that this thread didn't get more attention. Volatility targeting has been demonstrated to be a very effective means of controlling downside risk with minimal negative impact on returns and potentially even positive impact. Building on vineviz's excellent post above, potentially ...
by MotoTrojan
Sat Jun 22, 2019 12:05 pm
Forum: Investing - Theory, News & General
Topic: Volatility Managed Portfolio
Replies: 15
Views: 1130

Re: Volatility Managed Portfolio

Please see this article before you do anything crazy https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3357038 For every paper that proves something there's another that disproves. Perhaps ranking assets on return/risk ratio would setup a buy and hold portfolio better. That's why it's valuable to...
by MotoTrojan
Sat Jun 22, 2019 11:58 am
Forum: Investing - Theory, News & General
Topic: HEDGEFUNDIE's excellent adventure [risk parity strategy using 3x leveraged ETFs]
Replies: 2198
Views: 160548

Re: HEDGEFUNDIE's excellent adventure [risk parity strategy using 3x leveraged ETFs]

Glad to see the experimentation, but just wanted to point out that the 1 month inverse volatility strategy has only returned 15% YTD while the original strategy has returned 29%. Just like with plain ol’ index funds, tracking error is a thing. Cagr since Jan 2018 was 10.68% for inverse volatility v...
by MotoTrojan
Sat Jun 22, 2019 11:49 am
Forum: Investing - Theory, News & General
Topic: Larry Swedroe: Volatility Targeting Improves Risk Adjusted Returns
Replies: 25
Views: 1625

Re: Larry Swedroe: Volatility Targeting Improves Risk Adjusted Returns

In another couple of threads I’ve been discussing a similar but different approach that adjusts to the recent volatility in several assets and adjusts the allocation for risk parity or inverse volatility (which are equivalent when using 2 assets). This backtests extremely well for my particular fund...
by MotoTrojan
Fri Jun 21, 2019 10:39 pm
Forum: Investing - Theory, News & General
Topic: HEDGEFUNDIE's excellent adventure [risk parity strategy using 3x leveraged ETFs]
Replies: 2198
Views: 160548

Re: HEDGEFUNDIE's excellent adventure [risk parity strategy using 3x leveraged ETFs]

Lots of interesting options. I’m going with the 1 month look back risk-parity/inverse-volatility. I like that the only primary inputs are the actual volatility. I’m not fond of having to select the target volatility. I guess the 10 month decision isn’t far off from my decision to use 1 month, but i...
by MotoTrojan
Fri Jun 21, 2019 7:49 pm
Forum: Investing - Theory, News & General
Topic: Volatility Managed Portfolio
Replies: 15
Views: 1130

Re: Volatility Managed Portfolio

Demisaba wrote:
Fri Jun 21, 2019 7:44 pm
Please see this article before you do anything crazy

https://papers.ssrn.com/sol3/papers.cfm ... id=3357038
Thanks. Many would consider the leveraged ETF strategy crazy to begin with but I’ll give this a thorough review.
by MotoTrojan
Fri Jun 21, 2019 7:37 pm
Forum: Investing - Theory, News & General
Topic: Volatility Managed Portfolio
Replies: 15
Views: 1130

Re: Volatility Managed Portfolio

Recent good thread about this: https://www.bogleheads.org/forum/viewtopic.php?f=10&t=266993 My take away was to consider these new funds near retirement to protect against sequence risk. During accumulation it's not as important. Also very tax inefficient. My implementation is 100% in Roth and inte...
by MotoTrojan
Fri Jun 21, 2019 7:33 pm
Forum: Investing - Theory, News & General
Topic: HEDGEFUNDIE's excellent adventure [risk parity strategy using 3x leveraged ETFs]
Replies: 2198
Views: 160548

Re: HEDGEFUNDIE's excellent adventure [risk parity strategy using 3x leveraged ETFs]

Here is the unleveraged example but if you login you could run this with the simulated daily data which also shows a boost in return, sharpe, and much less drawdown (40% if I recall). https://www.portfoliovisualizer.com/test-market-timing-model?s=y&coreSatellite=false&timingModel=9&startYear=1985&e...
by MotoTrojan
Fri Jun 21, 2019 2:27 pm
Forum: Investing - Theory, News & General
Topic: HEDGEFUNDIE's excellent adventure [risk parity strategy using 3x leveraged ETFs]
Replies: 2198
Views: 160548

Re: HEDGEFUNDIE's excellent adventure [risk parity strategy using 3x leveraged ETFs]

How much does a margin loan at interactive brokers cost? It depends how much you borrow (more is better), and it varies with interest rates. You can see the latest rates here: https://www.interactivebrokers.com/en/index.php?f=1595 . It's much better than the ridiculous rates that other brokers char...
by MotoTrojan
Fri Jun 21, 2019 2:26 pm
Forum: Personal Consumer Issues
Topic: what was your worst major purchase? mine is a 2019 mazda3
Replies: 165
Views: 12107

Re: what was your worst major purchase mine is a 2019 mazda3

Jack FFR1846 wrote:
Fri Jun 21, 2019 12:13 pm
Audi S4. Spent literally 50% of the time I owned it in the shop. Traded it for a Wrangler which was a dream reliability wise comparatively.
Mine was rarely in the shop but man the depreciation hit even after buying used hurt....
by MotoTrojan
Fri Jun 21, 2019 2:07 pm
Forum: Investing - Theory, News & General
Topic: HEDGEFUNDIE's excellent adventure [risk parity strategy using 3x leveraged ETFs]
Replies: 2198
Views: 160548

Re: HEDGEFUNDIE's excellent adventure [risk parity strategy using 3x leveraged ETFs]

I've been playing with this a bit more with the UPROSIM/TMFSIM dataset on portfolio visualizer. I didn't link because this dataset needs to be uploaded individually (I think). The specific backtest with UPRO/TMF is https://www.portfoliovisualizer.com/test-market-timing-model?s=y&coreSatellite=false...
by MotoTrojan
Fri Jun 21, 2019 2:05 pm
Forum: Investing - Theory, News & General
Topic: HEDGEFUNDIE's excellent adventure [risk parity strategy using 3x leveraged ETFs]
Replies: 2198
Views: 160548

Re: HEDGEFUNDIE's excellent adventure [risk parity strategy using 3x leveraged ETFs]

I've read through the whole thread and I'm in for my whole Roth (~70k) at 60% TMF, 30% UPRO, and 10% TQQQ. I'm going to contribute until my principle reaches 100k (5 more years) and then HODL until 5mil. Let's ride this crazy train! Curious your rational for TQQQ? Have you simulated it’s impact dur...
by MotoTrojan
Fri Jun 21, 2019 12:01 pm
Forum: Investing - Theory, News & General
Topic: HEDGEFUNDIE's excellent adventure [risk parity strategy using 3x leveraged ETFs]
Replies: 2198
Views: 160548

Re: HEDGEFUNDIE's excellent adventure [risk parity strategy using 3x leveraged ETFs]

Here is the unleveraged example but if you login you could run this with the simulated daily data which also shows a boost in return, sharpe, and much less drawdown (40% if I recall). https://www.portfoliovisualizer.com/test-market-timing-model?s=y&coreSatellite=false&timingModel=9&startYear=1985&e...
by MotoTrojan
Fri Jun 21, 2019 11:38 am
Forum: Personal Consumer Issues
Topic: what was your worst major purchase? mine is a 2019 mazda3
Replies: 165
Views: 12107

Re: what was your worst major purchase mine is a 2019 mazda3

Oddly enough, I think my 2018 Mazda 3 was one of the better car purchases I ever made. +1. Got a killer deal thanks to the new 2019 design too. Never would've bought a brand new car otherwise (it was cheaper than any used ones on the market with low miles). Was a 1-1 swap more or less with my 60K m...
by MotoTrojan
Fri Jun 21, 2019 11:33 am
Forum: Personal Investments
Topic: Borrowing from 401K to invest...
Replies: 10
Views: 793

Re: Borrowing from 401K to invest...

To evaluate risk v reward, you’d need to know the possible reward. Assuming a 5 year 401k loan repayment term at 7%, you’re looking at ~$9,000 in interest over 5 years. That’s allowing you to “over-contribute” approximately $1,800 a year (front-loaded as the loan balance decreases). Seems a lot of ...
by MotoTrojan
Fri Jun 21, 2019 10:31 am
Forum: Investing - Theory, News & General
Topic: The problem in retirement we rarely discuss [what to do with stock funds]
Replies: 58
Views: 5657

Re: The problem in retirement we rarely discuss [what to do with stock funds]

I buy a stock for $1. 30 years later I sell it for $1,000. I have to pay an “enormous tax burden”.. $150. Meanwhile I made $850. On $1. I’m not seeing the problem. This. If the after tax return dwarfs the pretax return of the S&P500 I wouldn’t be opposed to selling a sizable chunk to preserve the w...