Search found 635 matches

by MotoTrojan
Thu Sep 14, 2017 1:05 pm
Forum: Personal Finance (Not Investing)
Topic: taxation of non-qualified stock options for a consultant
Replies: 2
Views: 147

Re: taxation of non-qualified stock options for a consultant

Not familiar with those forms, but your understanding of the taxation is correct. Downside to exercising now: Risk of exercise price (is it high?) Upsides to exercising now: If held for a year, gains will all be taxed as LTCG You can leave the company and still gain from this compensation/growth It ...
by MotoTrojan
Thu Sep 14, 2017 12:08 pm
Forum: Investing - Help with Personal Investments
Topic: What is the largest percentage of your total portfolio value that you have exchanged to rebalance?
Replies: 58
Views: 3136

Re: What is the largest percentage of your total portfolio value that you have exchanged to rebalance?

letsgobobby wrote:
Thu Sep 14, 2017 11:04 am

Between March 2008 and May 2009 I increased my stock allocation from 25% to 70%. In any given day I moved 7-10%, and more than once. Since then not more than 5%, and I think only once.
Nicely timed!
by MotoTrojan
Wed Sep 13, 2017 7:48 pm
Forum: Investing - Help with Personal Investments
Topic: Pseudo-bridge financing
Replies: 10
Views: 774

Re: Pseudo-bridge financing

Good reasons to keep a good balance in tax-advantaged space.

Also, if the market does tank and you rebalance, I'd do the calculation as if you had the bonds still (potentially pushing you to sell all remaining bonds), but that is just me :).
by MotoTrojan
Wed Sep 13, 2017 5:58 pm
Forum: Investing - Help with Personal Investments
Topic: What is the largest percentage of your total portfolio value that you have exchanged to rebalance?
Replies: 58
Views: 3136

Re: What is the largest percentage of your total portfolio value that you have exchanged to rebalance?

^I would not be 10% over in my equity allocation except after an RBD and then for only a few days. I suspect that's why I assumed for the 10% drop you wrote about that I started out in balance and the 10% drop put my equities way lower than where I like them. Huh? You're never 10% OVER? Isn't that ...
by MotoTrojan
Wed Sep 13, 2017 5:32 pm
Forum: Investing - Help with Personal Investments
Topic: What is the largest percentage of your total portfolio value that you have exchanged to rebalance?
Replies: 58
Views: 3136

Re: What is the largest percentage of your total portfolio value that you have exchanged to rebalance?

If it went down 10% in a day without you being able to rebalance on the way down, you'd be overexposed and take a bigger loss than your AA was sized for. I'm laughing. If it went down by 10% in one day and I couldn't rebalance on the way down, then I would be delighted as I would not have been thro...
by MotoTrojan
Wed Sep 13, 2017 4:57 pm
Forum: Investing - Help with Personal Investments
Topic: What is the largest percentage of your total portfolio value that you have exchanged to rebalance?
Replies: 58
Views: 3136

Re: What is the largest percentage of your total portfolio value that you have exchanged to rebalance?

Also what if your equities are up 10% above your AA, and the market goes down 10%? Wouldn't you have rather rebalanced? If the market goes down by 10%, I would have rebalanced on the way down and overrebalanced on a RBD. If it went down 10% in a day without you being able to rebalance on the way do...
by MotoTrojan
Wed Sep 13, 2017 4:44 pm
Forum: Investing - Help with Personal Investments
Topic: What is the largest percentage of your total portfolio value that you have exchanged to rebalance?
Replies: 58
Views: 3136

Re: What is the largest percentage of your total portfolio value that you have exchanged to rebalance?

What worries you about a larger exchange? Say I move 10% from equities to bonds and equities go up another 10%. That means I have not gained another 1% in portfolio value which is a big deal when it comes to annual performance. But if I move 1% and equities go up another 10%, then I have not gained...
by MotoTrojan
Wed Sep 13, 2017 4:19 pm
Forum: Investing - Help with Personal Investments
Topic: Back-door Roth even if under limit?
Replies: 13
Views: 852

Re: Back-door Roth even if under limit?

whodidntante wrote:
Wed Sep 13, 2017 2:52 pm
Were you surprised when you sold the company stock?

I would do a direct roth IRA contribution unless I suspected that I would not qualify.
Yes. Illiquid (private) company which had a buyback at an unexpected time, with a high enough offer for me to dump the majority of my holdings.
by MotoTrojan
Wed Sep 13, 2017 4:18 pm
Forum: Investing - Help with Personal Investments
Topic: Back-door Roth even if under limit?
Replies: 13
Views: 852

Re: Back-door Roth even if under limit?

How does this affect earnings? It does not affect earnings. Perhaps, I don't understand what you mean by earnings. I think they are wondering if those would be taxed, but now I am remembering my conversation with VG specialist who said you can recharacterize a TIRA to Roth without a taxable event.....
by MotoTrojan
Wed Sep 13, 2017 2:15 pm
Forum: Investing - Help with Personal Investments
Topic: Back-door Roth even if under limit?
Replies: 13
Views: 852

Back-door Roth even if under limit?

Current salary is comfortably below the Roth phase-out (~$10K margin) but in this particular year I sold a bunch of company stock and am now doing a recharacterization to non-deductible IRA, and then a conversion to Roth (taxable event for earnings). If one believed there was a risk of a surprise in...
by MotoTrojan
Wed Sep 13, 2017 10:30 am
Forum: Investing - Theory, News & General
Topic: U.S. stocks in freefall
Replies: 3943
Views: 1035172

Re: U.S. stocks in freefall

All time record highs in the US Stock Market is hardly a market in freefall. While back I told myself I'd stop checking market since I subscribed to this. Sadly I still do since it's more effort to check all the jokes on here than to check Apple Stock. We need an algorithm that only allows posts wh...
by MotoTrojan
Tue Sep 12, 2017 9:38 pm
Forum: Investing - Help with Personal Investments
Topic: Investment advice for 58 year old.
Replies: 23
Views: 1778

Re: Investment advice for 58 year old.

My goal is to live off dividends, interest and rental income in addition to social security. I want to leave the principal for my kids. Dangerous thought process. All that matters is Total Return. Other than tax implications, ignore dividends. They are not free money, they take aware from the "prin...
by MotoTrojan
Tue Sep 12, 2017 6:27 pm
Forum: Investing - Theory, News & General
Topic: S&P500 ex-FAANGs
Replies: 26
Views: 1540

Re: S&P500 ex-FAANGs

Could also do an equal-weighted S&P 500 index to reduce exposure to the high-flyers.
by MotoTrojan
Tue Sep 12, 2017 7:05 am
Forum: Investing - Theory, News & General
Topic: S&P500 ex-FAANGs
Replies: 26
Views: 1540

Re: S&P500 ex-FAANGs

S&P500 and short FAANG. Seems like a quick way to go broke though.
by MotoTrojan
Tue Sep 12, 2017 12:37 am
Forum: Investing - Theory, News & General
Topic: Another New Investor (Market Timing)
Replies: 36
Views: 2342

Re: Another New Investor (Market Timing)

What if your strategy to earn 15% falls short, or even goes negative? What if your shift to go dramatically more conservative happens right when the market takes off again? Don't time the market. You are betting that you know more then all the professionals and their high speed computers. Pick an A...
by MotoTrojan
Mon Sep 11, 2017 1:23 pm
Forum: Investing - Theory, News & General
Topic: U.S. stocks in freefall
Replies: 3943
Views: 1035172

Re: U.S. stocks in freefall

Windfall coming on Monday... enjoy the rally this week everyone else.
by MotoTrojan
Sun Sep 10, 2017 3:39 pm
Forum: Investing - Theory, News & General
Topic: Question on bubbles, stocks, etc.
Replies: 21
Views: 1738

Re: Question on bubbles, stocks, etc.

$100 at the low of Bitcoin (2010 timeframe I believe) was over $72M as of a few months ago. Now you are probably closer to $150M...

Makes you wonder :).
by MotoTrojan
Wed Sep 06, 2017 5:43 pm
Forum: Investing - Help with Personal Investments
Topic: Count unvested contributions when determining asset allocation?
Replies: 14
Views: 572

Re: Count unvested contributions when determining asset allocation?

In the longrun, investing it will yield gains for them when people leave.

Hopefully in a few years this won't matter as it'll be but a drop in your portfolio bucket. Until then, no majorly wrong answer if you have a good plan.
by MotoTrojan
Tue Sep 05, 2017 5:58 pm
Forum: Investing - Help with Personal Investments
Topic: First Time 401K Investor
Replies: 14
Views: 590

Re: First Time 401K Investor

Agree LIfeStrategy is a good way to go. Without a need to be concerned with tax-efficient fund placement, make your life easy and get a fund that rebalances. If you do want to mimic a 3-fund though, I'd advice against the VG Mid-cap fund. the VG Small-cap fund is actually more of a small/mid hybrid...
by MotoTrojan
Tue Sep 05, 2017 4:28 pm
Forum: Investing - Help with Personal Investments
Topic: First Time 401K Investor
Replies: 14
Views: 590

Re: First Time 401K Investor

Agree LIfeStrategy is a good way to go. Without a need to be concerned with tax-efficient fund placement, make your life easy and get a fund that rebalances. If you do want to mimic a 3-fund though, I'd advice against the VG Mid-cap fund. the VG Small-cap fund is actually more of a small/mid hybrid ...
by MotoTrojan
Mon Sep 04, 2017 4:00 pm
Forum: Personal Finance (Not Investing)
Topic: Just got a certified letter from the IRS...
Replies: 4
Views: 1666

Re: Just got a certified letter from the IRS...

Bummer that this wasn't included on your W2. I've never had any trouble or needed to file anything specific to my stock awards, which I have paid taxes myself (cut check to company) and through the sale of shares (handled by company).
by MotoTrojan
Mon Sep 04, 2017 3:57 pm
Forum: Investing - Theory, News & General
Topic: U.S. stocks in freefall
Replies: 3943
Views: 1035172

Re: U.S. stocks in freefall

Also, stocks as a whole yielded more than bonds, the thinking was that if stocks were riskier than bonds, stockholders deserved higher yields than bondholders. The line where bonds started yielding more than stocks evidently was crossed somewhere in the 1950's, this got posted somewhere on the foru...
by MotoTrojan
Mon Sep 04, 2017 3:55 pm
Forum: Investing - Help with Personal Investments
Topic: How do I estimate the probability that an ETF will delist?
Replies: 4
Views: 504

Re: How do I estimate the probability that an ETF will delist?

I worry about this with VIOV at ~$230M AUM, but nice to hear VG has never delisted an ETF apparently.

Just started holding VIOV in taxable (been in Roth) which is my concern; forced capital-gains if closed.
by MotoTrojan
Sun Sep 03, 2017 12:53 am
Forum: Investing - Help with Personal Investments
Topic: Our Family FI Plan for Your Critique
Replies: 26
Views: 2329

Re: Our Family FI Plan for Your Critique

You are very very unlikely to get 8% real returns for the next couple of decades. You are VERY VERY unlikely to support an 8% withdrawal rate, in fact, I'd wager that is impossible, and that sounds like what you are relying on for your FI calculation. I'd try 4% real (after inflation) returns for a...
by MotoTrojan
Sun Sep 03, 2017 12:50 am
Forum: Investing - Help with Personal Investments
Topic: Advice on Vanguard PAS and Investment Choices
Replies: 23
Views: 1812

Re: Advice on Vanguard PAS and Investment Choices

Thanks. I was referring to the 3 fund portfolio. I want something that will be worry-free for now when I move my retirement funds to Vanguard so I can learn more about personal investment. Understood, but the 3-fund is adaptable based on your desired bond and international allocations. Just making ...
by MotoTrojan
Sun Sep 03, 2017 12:47 am
Forum: Investing - Help with Personal Investments
Topic: Restricted Stock Units...Profit?
Replies: 23
Views: 1723

Re: Restricted Stock Units...Profit?

RSUs are just shares, with no exercise price, and as mentioned you are obligated to pay income tax on the value when they are given to you, and then capital gains on growth (like any other stock). I guess it depends on what you mean by "value when they are given to you." The value at the time of th...
by MotoTrojan
Fri Sep 01, 2017 9:53 am
Forum: Investing - Help with Personal Investments
Topic: Necessary time horizon to consider investing in municipal bonds
Replies: 7
Views: 640

Re: Necessary time horizon to consider investing in municipal bonds

If you're planning 5 - 10 years out and assuming an increase in income to the 33% bracket in 1-3 years, what would this scenario look like for you? Promotion in 2 years Retire in 7 years How much is 5 years of saving 5% in taxes on bonds worth to you? If it were me, I'd buy the muni bonds when I ne...
by MotoTrojan
Thu Aug 31, 2017 11:27 pm
Forum: Investing - Help with Personal Investments
Topic: Our Family FI Plan for Your Critique
Replies: 26
Views: 2329

Re: Our Family FI Plan for Your Critique

You are very very unlikely to get 8% real returns for the next couple of decades. You are VERY VERY unlikely to support an 8% withdrawal rate, in fact, I'd wager that is impossible, and that sounds like what you are relying on for your FI calculation. I'd try 4% real (after inflation) returns for ac...
by MotoTrojan
Thu Aug 31, 2017 11:14 pm
Forum: Investing - Theory, News & General
Topic: Perhaps you shouldn't rebalance your SCV "tilt"
Replies: 9
Views: 1126

Re: Perhaps you shouldn't rebalance your SCV "tilt"

Above points are good, but beyond that, 0.5% is far from a wash.
by MotoTrojan
Thu Aug 31, 2017 5:05 pm
Forum: Investing - Help with Personal Investments
Topic: Restricted Stock Units...Profit?
Replies: 23
Views: 1723

Re: Restricted Stock Units...Profit?

... There is nothing irresponsible in estimating the value of stock options when distributed. .... Well in this case it has taken the company 2 years to deposit shares (including ones that have supposedly vested) into the OPs account and the communication to the employee is confusing him in talking...
by MotoTrojan
Thu Aug 31, 2017 12:58 am
Forum: Investing - Help with Personal Investments
Topic: Restricted Stock Units...Profit?
Replies: 23
Views: 1723

Re: Restricted Stock Units...Profit?

Also I am sorry to say that you are likely calculating things wrong and not sitting on a 6-figure windfall. Not sure why you think the dollar value of options provided by the company would then be multiplied by your share price. It sounds like you either have $2129.40 of RSUs, which would be $2129.4...
by MotoTrojan
Thu Aug 31, 2017 12:55 am
Forum: Investing - Help with Personal Investments
Topic: Restricted Stock Units...Profit?
Replies: 23
Views: 1723

Re: Restricted Stock Units...Profit?

Taxes are very complicated with options, unless you do a cash-less exercise (immediately sell and just take the payout as regular income). Look-out for AMT if you have ISOs (a type of option) and hold them for a year after exercise. If these are options, your "profit" is the difference between your ...
by MotoTrojan
Thu Aug 31, 2017 12:49 am
Forum: Investing - Help with Personal Investments
Topic: Retirement or Pay Off Debt?
Replies: 35
Views: 3036

Re: Retirement or Pay Off Debt?

An after-tax, risk free return of almost 5%? I'd get that loan paid off before I maxed out a 401K AND Roth if it were me.
by MotoTrojan
Thu Aug 31, 2017 12:02 am
Forum: Investing - Help with Personal Investments
Topic: Advice on Vanguard PAS and Investment Choices
Replies: 23
Views: 1812

Re: Advice on Vanguard PAS and Investment Choices

Desired Asset allocation: 60/40 allocation or 33/33/33? Looking for reccomendation Desired International allocation: 30%-33% of stocks Minor point, but 60/40 with a 30% international would be a 42/18/40 US/Int/Bonds, not 30/30/40 (which your above 33/33/33 alluded to you thinking). 30% Internationa...
by MotoTrojan
Wed Aug 30, 2017 5:25 pm
Forum: Investing - Help with Personal Investments
Topic: Age 30 Starting ASAP
Replies: 14
Views: 2074

Re: Age 30 Starting ASAP

Since this is going in a tax-advantaged account (Roth), the only reason you'd want to build your own 3-fund, is if you want to tweak the asset allocation. Do you? If you are comfortable with the curve of the 2050 or 2060 AA (including the International stake of equity) than don't bother with the 3-...
by MotoTrojan
Wed Aug 30, 2017 6:48 am
Forum: Investing - Help with Personal Investments
Topic: Age 30 Starting ASAP
Replies: 14
Views: 2074

Re: Age 30 Starting ASAP

Since this is going in a tax-advantaged account (Roth), the only reason you'd want to build your own 3-fund, is if you want to tweak the asset allocation. Do you? If you are comfortable with the curve of the 2050 or 2060 AA (including the International stake of equity) than don't bother with the 3-f...
by MotoTrojan
Sun Aug 27, 2017 11:39 pm
Forum: Investing - Help with Personal Investments
Topic: Sitting on the sidelines...for now
Replies: 32
Views: 3752

Re: Sitting on the sidelines...for now

Just retired 3 months ago at 64. Not collecting SS just yet. Anticipate that I have enough on hand to wait until FRA. I have enough in my tax deferred accounts to be comfortable after the post election run-up in the market. I recently transferred all of my previous work 401K's to a Vanguard MM IRA....
by MotoTrojan
Sat Aug 26, 2017 4:28 pm
Forum: Investing - Theory, News & General
Topic: Is the ETF of ETFs worth it?
Replies: 2
Views: 425

Re: Is the ETF of ETFs worth it?

I already own two of the three components of the soon to come Vanguard Total Corporate Bond ETF: the intermediate and long term corporate bond etfs. If I buy the short term corporate bond etf, what am I getting, or not getting, compared to the new ETF? What is the advantage of an ETF of ETFs other ...
by MotoTrojan
Sat Aug 26, 2017 1:50 pm
Forum: Investing - Theory, News & General
Topic: Review with Me - Larry Swedroe's new book
Replies: 108
Views: 6462

Re: Review with Me Larry Swedroe's new book

I'd have to dig mine out to find a specific example, but I know I found some of the factor premiums confusing/contradictory as to what the % was in relation to.
by MotoTrojan
Sat Aug 26, 2017 1:31 pm
Forum: Investing - Theory, News & General
Topic: How and when do you decide to do Tax Loss Harvesting?
Replies: 24
Views: 2345

Re: How and when do you decide to do Tax Loss Harvesting?

Thanks for the replies, since I only one taxable account (all my other savings go to wife's and my retirement accounts) I don't really have a lot going on. Like Artsdoctor said TLH is most beneficial if you are holding a long term investment during a financial downturn, so even if it doesn't recove...
by MotoTrojan
Sat Aug 26, 2017 1:45 am
Forum: Investing - Theory, News & General
Topic: How and when do you decide to do Tax Loss Harvesting?
Replies: 24
Views: 2345

Re: How and when do you decide to do Tax Loss Harvesting?

I only started investing in taxable account last month. It's all on VOO. I see that it's down by about -1.5%. If I sell this at loss and buy something else like Total Market Index, that loss will be a loss that I can use to cover the gains later on, but doesn't that loss help me cover the gains if ...
by MotoTrojan
Fri Aug 25, 2017 1:11 am
Forum: Investing - Help with Personal Investments
Topic: 24 year old seeking reassurance and critiques of Roth IRA ETF portfolio asset allocation
Replies: 11
Views: 689

Re: 24 year old seeking reassurance and critiques of Roth IRA ETF portfolio asset allocation

What would be the point of holding ETFs instead of mutual funds in an IRA? Or said another way, what are the advantages/disadvantages of ETFs and mutual funds in IRAs, for the average investor? I just prefer knowing exactly what price I am buying/selling at and enjoy the tinkering aspect of ETF pur...
by MotoTrojan
Fri Aug 25, 2017 1:10 am
Forum: Investing - Help with Personal Investments
Topic: 24 year old seeking reassurance and critiques of Roth IRA ETF portfolio asset allocation
Replies: 11
Views: 689

Re: 24 year old seeking reassurance and critiques of Roth IRA ETF portfolio asset allocation

I must thank you all for your replies. My naivety and arrogance would have started me off on shakier footing. As I age, I continue to learn the value of asking for help. I will focus my attention on two to four equity funds maximum at this time. Consensus tells me that a majority holding in VTI and...
by MotoTrojan
Fri Aug 25, 2017 1:03 am
Forum: Investing - Help with Personal Investments
Topic: How much Stability do Bonds add to Portfolio?
Replies: 19
Views: 1544

Re: How much Stability do Bonds add to Portfolio?

I want to get as much money as I can in 2-3 years just concerned about how much taking the added diversity of Bonds out of my portfolio will put me at risk. This is a MASSIVE red-flag and fairly reckless. You should not be investing in the stock-market, especially at 80-100% equities, for anything ...
by MotoTrojan
Thu Aug 24, 2017 10:06 pm
Forum: Investing - Help with Personal Investments
Topic: 24 year old seeking reassurance and critiques of Roth IRA ETF portfolio asset allocation
Replies: 11
Views: 689

Re: 24 year old seeking reassurance and critiques of Roth IRA ETF portfolio asset allocation

Simplify. If you want to tilt, pick one tilt (small-cap value, emerging market, etc...) and be done with it for now). I started with an overly complicated portfolio like this before realizing it makes life difficult, especially with small monthly contributions (Roth limits), and adds no real value;...
by MotoTrojan
Thu Aug 24, 2017 6:19 pm
Forum: Investing - Help with Personal Investments
Topic: 24 year old seeking reassurance and critiques of Roth IRA ETF portfolio asset allocation
Replies: 11
Views: 689

Re: 24 year old seeking reassurance and critiques of Roth IRA ETF portfolio asset allocation

Simplify. If you want to tilt, pick one tilt (small-cap value, emerging market, etc...) and be done with it for now). I started with an overly complicated portfolio like this before realizing it makes life difficult, especially with small monthly contributions (Roth limits), and adds no real value; ...
by MotoTrojan
Thu Aug 24, 2017 6:12 pm
Forum: Investing - Help with Personal Investments
Topic: Company sold: need help investing / crazy family
Replies: 7
Views: 1184

Re: Company sold: need help investing / crazy family

Not familiar with New Perspective, but you are a perfect candidate for a 3-fund Portfolio of Total US, Total Int, and Total Bond. Don't over complicate with mid-cap vs. large-cap, in my opinion. If you want to tilt, at-least go all-in on the small-cap premium, but I don't think it is necessary here....