Search found 116 matches
- Thu Jul 18, 2019 5:06 pm
- Forum: Personal Finance (Not Investing)
- Topic: Help with Value of Roth in Divorce (vs Tax-def'd acct)
- Replies: 5
- Views: 839
Help with Value of Roth in Divorce (vs Tax-def'd acct)
Hello, I am running into many dead ends trying to determine the "value" of Roth assets vs Tax-def'd assets during divorce proceedings. I am shocked that both lawyers appear to simply accept that in New York State, how assets are divided are based on pooling the assets, dividing and then determining equity regardless of the type of asset (Roth vs non-Roth). It is actually quite baffling and frustrating for something so basic to not be commonplace in divorce in NYS. -The scenario is that one party has 265K in Roth assets and 327K tax-def'd (401K) -The other party has 118K in ROTH but 676K in tax-def'd (457/403b). It appears it is standard practice by the lawyers to simply add all of those up, divide in two, and subtract from the ave...
- Tue Mar 19, 2019 11:14 am
- Forum: Personal Finance (Not Investing)
- Topic: Help/suggestions home purch/retirement loan - divorce
- Replies: 11
- Views: 1622
Re: Help/suggestions home purch/retirement loan - divorce
Thanks to everyone for the replies and insight. Bogleheads should have a board dedicated to this sort of stuff under the community section
There is a lot of non-financial insight and wisdom in these posts!
There is a lot of non-financial insight and wisdom in these posts!
- Wed Mar 13, 2019 4:04 pm
- Forum: Personal Finance (Not Investing)
- Topic: Help/suggestions home purch/retirement loan - divorce
- Replies: 11
- Views: 1622
Re: Help/suggestions home purch/retirement loan - divorce
Sorry for your loss. You're going through a lot. You may want to keep the house so that the kids have some continuity. And rent a sepetate studio for when you're w/o kids. Although you have different custody for each kid so maybe just rent an apartment for the three of you. Either way there should be no serious dating, buying or any other major decision while you are healing. Just chill out and take care of yourself. Ex already bought another home, definitely could not do a separate studio and keep the house (plus I have one or both of them almost 80% of the time). I did think about keeping the house and could probably just pull it off but it is way too big for me to maintain on my own (it was tough with two working parents). I am looking ...
- Wed Mar 13, 2019 3:59 pm
- Forum: Personal Finance (Not Investing)
- Topic: Help/suggestions home purch/retirement loan - divorce
- Replies: 11
- Views: 1622
Re: Help/suggestions home purch/retirement loan - divorce
Thanks. I appreciate your words and insight. -I was not close to getting approved for a mort due to debt to income ratio. Current home payment is 1860 (6/7 years left on a 15yr at 2.5%) and prop taxes nearly 16K. A second more modest home and prop taxes even half that pushes the ratio too high! I did get approved for 200K with 130K down, so in theory, I could do the two 403b/457 loans and use liquid. That is a possibility, too. -Your rental idea is probably the right idea for me, it really is. Maybe I will do some more googling! However, I'm looking at this as a dad, so maybe I'm doing something I would normally warn strongly against. I'm still thinking and was smart enough to post here first, so it's fluid! Very sorry for your situation. N...
- Wed Mar 13, 2019 3:51 pm
- Forum: Personal Finance (Not Investing)
- Topic: Help/suggestions home purch/retirement loan - divorce
- Replies: 11
- Views: 1622
Re: Help/suggestions home purch/retirement loan - divorce
Thanks for responding and kind words. -Those totals for retirement are just mine. She will end up with a like number... -I did check with both 403B and State 457 and I could do both 50K from each (unless cust support was not correct). -In terms of being out of the market, my goal AA is 70/30 so the loan funds would be part of that strategy where I could still have 70% of retirement money in equities. The total borrow is 19% of my retirement so I can easily keep the AA where it needs to be. -Over the next several years, I would not being maxing out my retirement accts like I/we had done for much of our lives. -What I mean by "borrow" roth means using the 60 day in and out rule. Even if borrowed 70K and didn't sell the current home ...
- Wed Mar 13, 2019 1:40 pm
- Forum: Personal Investments
- Topic: Divorce Question - 401K QDRO
- Replies: 36
- Views: 4145
Re: Divorce Question - 401K QDRO
Thank you. For me, the date of separation will be addressed in the next week or so and have been curious seeing how others have come up with it. I know if varies by state, situation, etc! Last, out of curiosity, if you don't mind me asking how your "date of separation" got finalized and agreed to? I have heard it can vary by judge, by court, my lawyers, etc. Sometimes it is the date something is filed but others when one took action and essentially started on the path to divorce which is often well-before things like mediation, court, etc. Feel free to send me a private message if that is too personal! I am not OP but the date of separation for my ex-spouse and I was the day I moved out of marital house. In my state you essentiall...
- Wed Mar 13, 2019 10:20 am
- Forum: Personal Investments
- Topic: Divorce Question - 401K QDRO
- Replies: 36
- Views: 4145
Re: Divorce Question - 401K QDRO
Sorry about your divorce. I'm now in the same boat and it's not easy. Regarding your question, IMO, this is about asset allocation. For ex, if you were comfortable with 100% equities, then it doesn't matter where that 150K is. If the 400K was cut in half the day before you were to xfer that money, you would be left with 50K in stock but your goal would have been 100% stock anyway, so it was irrelevant what happened in the market. IF you wanted a 50/50 AA, in theory you have 250K now for your future in that pool of money (after her 150K) and you would want 125K stock/125 FI. So, for now, you could simply keep the 125K in stocks and ensure you have 275K in FI (with 150 of that being cash). Other factors in this includes any other source of fu...
- Wed Mar 13, 2019 8:28 am
- Forum: Personal Finance (Not Investing)
- Topic: Help/suggestions home purch/retirement loan - divorce
- Replies: 11
- Views: 1622
Help/suggestions home purch/retirement loan - divorce
Could everyone please take a read and let me know if your thoughts (good/bad) on the following. If you don't think it's a good idea, I definitely welcome the reasons, please! My scenario is that after being together for almost 25 years, since college, my soon to be ex decided she was no longer happy last summer. A quick side note to everyone on this board that thinks this could not happen to you (for when you think about planning, finances, future, etc) please take my advice that it absolutely can. We were the couple that was together all the time for almost 25 years (married 20, two kids) from college to our current age in mid-40's - "seemed" like the perfect family. Sure, we had issues like the next family but next thing I knew,...
- Wed Jul 25, 2018 4:37 pm
- Forum: Personal Investments
- Topic: How do you deal with a bear market?
- Replies: 35
- Views: 3229
Re: How do you deal with a bear market?
But a lot of people around me tell me that you should sell your equity investments for bonds or things like gold when the economy is at its peak and re-invest in stocks when economy is at its low. While I get that idea, how do you know when to go for safer investments? And how do you go about it? I hope you have found here that your emotions can be dangerous to your future financial health. Add this article from Vanguard titled Protect your portfolio from your emotions https://investornews.vanguard/protect-your-portfolio-from-your-emotions/ for you to read and heed. From that is this quote “If you’re on the brink of making a change to your portfolio, ask yourself what’s driving the change,” Bennyhoff said. “Is it driven by the market and w...
- Wed Jul 25, 2018 4:33 pm
- Forum: Personal Investments
- Topic: How do you deal with a bear market?
- Replies: 35
- Views: 3229
Re: How do you deal with a bear market?
I recently started investing and I like the idea of solid investments that I believe in. Hence I will buy and hold, even in recessions. My portfolio is like 60/40 stocks (etf)/bonds. But a lot of people around me tell me that you should sell your equity investments for bonds or things like gold when the economy is at its peak and re-invest in stocks when economy is at its low. While I get that idea, how do you know when to go for safer investments? And how do you go about it? You are looking at this from bottom up approach when it needs to be top-down. How old are you? How much risk do you want to take? If you are young, you should be taking on risk because that is when people make their money, when time is on their side and they can inves...
- Wed Jul 25, 2018 4:16 pm
- Forum: Investing - Theory, News & General
- Topic: A 3-year glide from 60-40 to 40-60?
- Replies: 5
- Views: 746
Re: A 3-year glide from 60-40 to 40-60?
Yep, that tells me it's probably not the right AA now, unless there has been a major life change which expedited it.
- Wed Jul 25, 2018 4:02 pm
- Forum: Personal Investments
- Topic: Early Retirement-Does 3 fund portfolio make sense for me
- Replies: 12
- Views: 1268
Re: Early Retirement-Does 3 fund portfolio make sense for me
I’m 48 years old with a wife and no kids. Retired early last year with a $9M nest egg most of it is in taxable managed accounts. I’m not thrilled about paying over 1% to my advisors if I can get similar returns using the 3 fund portfolio. I would like to be able to pull a conservative 3% annually for spending since we’re still relatively young. Current allocation is about 60% stocks and 40% bonds. The following is my breakdown. Currently $3M taxable in one managed account $4M taxable in another managed account $1M taxable in self managed account $1M in retirement account Moving $8M taxable will result in considerable tax ramifications Ideally just two accounts? $8M taxable with 3 fund portfolio $1M retirement with 100% S&P 500 index fu...
- Wed Jul 25, 2018 3:53 pm
- Forum: Investing - Theory, News & General
- Topic: A 3-year glide from 60-40 to 40-60?
- Replies: 5
- Views: 746
Re: A 3-year glide from 60-40 to 40-60?
Is it a) timing the market, or b) assuming a recession "sometime" between now and 2021/2022 without timing it? The more I think about investment, esp. after frequented this board, the more I understand investing. Investing is simple. Invest your money based on your risk/reward and when you do so, keep it simple with low cost index funds in a well-diversified manner. That should be the same from there. Then, people can differ and what they see as risk or reward, or how to diversify (how much small, how much international,etc), etc, but it the cornerstone is your risk/reward. If you are comfortable, regardless of your age, at 60/40, then there is nothing saying you cannot be comfortable at 40/60 in three years. If I had to play beh...
- Wed Jul 25, 2018 3:09 pm
- Forum: Personal Investments
- Topic: 401k allocation help please
- Replies: 8
- Views: 665
Re: 401k allocation help please
Hi everyone, I will become eligible for my company's 401k plan in December. The 401k is through Principal and the offerings do not appear to me to be great. There are three funds available with e/r's below 0.50 (out of 32 total available funds), and I am curious as to how you would set your contributions up to be most Boglehead-ish. The three funds with reasonable e/r's are: - Principal Global Investors LargeCap S&P 500 Index Separate Account (benchmark: S&P 500 index) (e/r=0.31%) - Principal Global Investors MidCap S&P 400 Index Separate Account (benchmark: S&P 400 MidCap Stock Index) (e/r = 0.31%) - Principal Global Investors SmallCap S&P 600 Index Separate Account (benchmark: S&P 600 Stock index) (e/r = 0.31%) Al...
- Wed Jul 25, 2018 2:49 pm
- Forum: Personal Investments
- Topic: TIAA Investment Horizons Annuity or Allianz Core Income 7
- Replies: 18
- Views: 1324
Re: Anyone know anything about TIAA traditional Annuity
Is this a good plan After hitting my mid-40s last year and moving from 0 to approx 30% fixed income, I turned to the Tiaa Trad as a a major component of my FI. Ideally, I want about 20% of my portfolio in illiquid version GRA/RA which guarantees 3% but currently yielding 4%. That 20% is the amount of my portfolio I've decided that I no longer want to risk and will be happy with a 3% floor return, knowing I'm getting 4% and maybe a bit more in the future. (Though if one decides they know they will hold a portion of their fixed income for at least the duration of a total bond index, they probably will get similar yields now, too). WHere I really like Trad is for my goal for the remaining 10% of my Fixed Income part of my portfolio that is li...
- Wed Jul 25, 2018 2:24 pm
- Forum: Personal Investments
- Topic: 200k in savings....too much
- Replies: 31
- Views: 5136
Re: 200k in savings....too much
One other consideration is if you get a near zero interest loan for the truck, take it and simply keep that money in the MM yielding 2+ (and possibly higher in next few years) and use that to pay off the truck loan. The only way you wouldn't do that is if it changed what you paid for the car outright.
Good luck with things.
- Wed Jul 25, 2018 2:18 pm
- Forum: Personal Investments
- Topic: Add More Long Term Bonds in a ROTH IRA?
- Replies: 7
- Views: 662
Re: Add More Long Term Bonds in a ROTH IRA?
Hello All, I have a Roth IRA which I may be able to avoid using and pass onto to my children, probably 10 to 30 years from now (I am 68). The allocation is 80% Bonds and 20% stock (in the Life Strategy Income Fund). Since the funds probably won't be used for a long time, I could take more risk and increase the return. There are two options, more stocks or riskier bonds. I don't want to buy more stocks during the current bubble. That leaves taking more risk in the bond portion. That would mean buying more long term bonds. The Boglehead consensus seems to be to avoid long term bonds. However, Anthony Webb(1) argues for retirees buying bonds with a duration that matches the household's life expectancy. You buy shorter duration bonds as you ge...
- Wed Jul 25, 2018 1:57 pm
- Forum: Personal Investments
- Topic: 200k in savings....too much
- Replies: 31
- Views: 5136
Re: 200k in savings....too much
Hi all! New here but have been reading a lot. I have about 200k in a high yield savings account (1.75% currently). That is too much to keep there and I need to look to make it work more for me for retirement. Married: both 33yo right now. No kids Both earn about 80k/year Mtg with about $155k left on it. Live in it for almost 2 years now. (house zillows for $270k current for what that's worth) No other debt (cc get paid off each month) both max out 401k plans. Just opened HSA through work b/c new ins and plan to max out the $3450. Currently have $11.8k in vanguard 500 index fund Admiral shares VFIAX (started with 10k about a year ago) 5.5k in Vanguard Roth IRA just opened. Plan to open another for wife too. 5k in usaa roth that hasn't had a...
- Thu May 17, 2018 11:42 am
- Forum: Personal Finance (Not Investing)
- Topic: Retirement Communities w Great Weather and Low/No State Taxes?
- Replies: 12
- Views: 2667
Re: Retirement Communities w Great Weather and Low/No State Taxes?
+1
Weather/climate is so subjective. One's perfect climate is another person's siberia (maybe siberia is perfect for one?).
I love cool and crisp temps, think early-Nov in the northeast. Many find that unbearable to have for extended time. On the flip side, I cannot imagine anyone living in Florida, Vegas or Phoenix, etc.
- Sun May 13, 2018 3:57 pm
- Forum: Personal Consumer Issues
- Topic: Buy new or keep 2009 CRV?
- Replies: 12
- Views: 1254
Re: Buy new or keep 2009 CRV?
This seals the deal. I didn't want to bias anyone with my original post but that's what I was leaning to...the responses in this thread sealed it! Thanks!
- Sun May 13, 2018 3:55 pm
- Forum: Personal Consumer Issues
- Topic: Buy new or keep 2009 CRV?
- Replies: 12
- Views: 1254
- Sun May 13, 2018 3:54 pm
- Forum: Personal Consumer Issues
- Topic: Buy new or keep 2009 CRV?
- Replies: 12
- Views: 1254
Re: Buy new or keep 2009 CRV?
Thanks so much for the reply, that's good to know a 1500 investment should get me several more years. Outside of a few long sports tournies for kids, most of the mileage is local, so 50K miles would be another 3-5 years. That's kind of what I was leaning to...
- Sun May 13, 2018 3:53 pm
- Forum: Personal Consumer Issues
- Topic: Buy new or keep 2009 CRV?
- Replies: 12
- Views: 1254
Re: Buy new or keep 2009 CRV?
The heart wants the wrangler, head RAV4 or other crossover/compact SUVJack FFR1846 wrote: ↑Sat May 12, 2018 6:27 pm Buy a Wrangler. You don't get the "Jeep Wave" with any other vehicle.
- Sun May 13, 2018 3:51 pm
- Forum: Personal Consumer Issues
- Topic: Buy new or keep 2009 CRV?
- Replies: 12
- Views: 1254
Re: Buy new or keep 2009 CRV?
I'm a little confused… is your current car a 2009 CRV or Highlander? Also you stated you want to use your current car as a trade in for a mid-sized SUV but all of the cars you list (CRV, Jeep Wrangler, Forrester, Rav4) are all compact crossovers… need more context or clarification here. Lastly, sounds like, based on the information you provided, that the new car purchase would be financed. If that's the case, I would repair the existing car and keep driving it. If your goal is to retire early, keeping and repairing an existing Honda would align with that versus financing a new vehicle. Sorry about the confusion, I whipped that up pretty fast with kids poking around... Currently driving the crv , traded the Sub Forest. in for the Toy Highla...
- Sat May 12, 2018 5:37 pm
- Forum: Personal Consumer Issues
- Topic: Buy new or keep 2009 CRV?
- Replies: 12
- Views: 1254
Buy new or keep 2009 CRV?
Hi all, We traded in the Sub Forest. I was driving that had 80K miles on it and my wife* used it for a tradein on a highlander. It was great in the winter but I was never a big fan of driving it. My dilemma is that it needs new tires at a cost of 700 (I like nokian all season) and I just discovered the AC is not working and I'm thinking it's a compressor at a cost of 800 or so (though no quote yet/opinion yet). So, do I spend 1500 on this car that is nearly 10 years old with 127K miles on it or use that 1500 and put it towards a new mid-sized SUV. I would love a Wrangler but don't think I could buy it knowing about all the negatives associated with it and the company. So, I'd probably get a RAV4 but would look at a comparable Hyundai or Kia...
- Mon Feb 19, 2018 1:57 pm
- Forum: Personal Investments
- Topic: 1/4 of FI for rebalance: Tot bond vs stable value/short term
- Replies: 2
- Views: 588
1/4 of FI for rebalance: Tot bond vs stable value/short term
I have approx 50% of my FI in Tiaa Traditional RA (guarantee 3%, current 4% yield - 9 year lock in). The other half in a total bond index (standard BB aggregate) with an Op Expense of two basis points (.02%). I plan on moving my FI around to get to the point where Tiaa Trad is approx 70-75% of my FI. My question is for the 25-30% that I keep liquid, with the goal to rebalance at significant drops in stocks, should I keep that in a stable value fund (though ? I have a few options for Stable Value funds, one yielding 2% but about 37 basis points for the OE, so I'm not a big fan of that. I also have access to a VOYA Core Plus Trust fund that has a reasonable Op Ex of 26 basis points for the potential "reward." The objective of the fu...
- Mon Feb 19, 2018 1:22 pm
- Forum: Investing - Theory, News & General
- Topic: Small Cap Value Benchmarks (related to Mid cap,too)
- Replies: 13
- Views: 1905
Re: Small Cap Value Benchmarks (related to Mid cap,too)
Good info, thanks so much. At a minimum, it will add a bit more diversity to my current SCV tilt and maybe even get a few % points out of it over the next few decades!BlueEars wrote: ↑Mon Feb 19, 2018 12:01 pm I only compare VG funds which admittedly is pragmatic and not the whole picture if you use other funds/etfs. My data shows that over 25 years MV has done better then SV. Before VG had a midcap value offering (started in 2009) I have used the msci index to compare these.
For example:
From June 1992 to now
MV CAGR = 12.2%
SV CAGR = 11.5%
Splitting these into 2 subperiods showed MV > SV for both.
I think the CRISP indexes (which VG adopted in 2013) have done better at capturing the value tilt then MSCI did.
- Mon Feb 19, 2018 11:41 am
- Forum: Investing - Theory, News & General
- Topic: Small Cap Value Benchmarks (related to Mid cap,too)
- Replies: 13
- Views: 1905
Re: Small Cap Value Benchmarks (related to Mid cap,too)
I have over weighted vmvax (MCV) for years. Very recently I moved all my vsiax (SCV) to it. The reason is simply better performance over extended time periods. I've seen the posts with the Russell concerns. I've read how SP600 has beaten russell 2000 by a good % the last 10-20 years. I wonder why that is? Do most think that trend will continue? I really do prefer the smaller SP600 value but I don't think I mind the diversity of having SCV in SP600, Russell and CRSP. Also, thanks for the info on VWO/vemax. I hadn't considered it was about Taiwan! https://myphotos.mypclinuxos.com/images/patrick013/smallcapexport.png Hard to find over 20 years of history on the S&P indexes. Russell's mid-cap is doing better than it's big small cap index. ...
- Fri Feb 16, 2018 3:38 pm
- Forum: Investing - Theory, News & General
- Topic: Small Cap Value Benchmarks (related to Mid cap,too)
- Replies: 13
- Views: 1905
Re: Small Cap Value Benchmarks (related to Mid cap,too)
Good afternoon, I have a heavy tilt to value, esp. SCV, and have never specifically gone out of my way to add midcap value. We often get a lot of midcaps by default through some "smaller" large, or "bigger" small. I was thinking about it more with some articles about it possibly being overlooked space with potential for a greater premium. I am thinking about rebalancing to VOE (Van MC value, 92% mid, 8 large). However, I own three different small cap values (due to many different plans at work, wife's acct, ira, etc). 1) Workplace 401K Van SC value, benchmark is Russell 2000 (so, think VTWV). Only 3% mid,52% sm, 38 micro). About 40% of my SCV holding 2) ANother retirement acct Van SC value, benchmark CRSP (think vsiax/v...
- Fri Feb 16, 2018 3:34 pm
- Forum: Investing - Theory, News & General
- Topic: Small Cap Value Benchmarks (related to Mid cap,too)
- Replies: 13
- Views: 1905
Re: Small Cap Value Benchmarks (related to Mid cap,too)
Alexa9 wrote: ↑Thu Feb 15, 2018 1:30 pm Mid Cap Value is a great fund as well and has done better than Small Cap Value during several time periods. There are complaints that small value funds are not small or valuey enough. I think if you really want to capture the premium, you might consider tilting more or DFA (especially with the international options).
I would love to have access to DFA but I don't. It is hard enough for me to own EWX and DLS with higher OE, so I definitely wouldn't want the higher OE and have to pay to get them. That said, I think they do it right...value! So really low P/Bs on their funds!
- Fri Feb 16, 2018 3:32 pm
- Forum: Investing - Theory, News & General
- Topic: Small Cap Value Benchmarks (related to Mid cap,too)
- Replies: 13
- Views: 1905
Re: Small Cap Value Benchmarks (related to Mid cap,too)
So your SCV is much like mine, just a different funds/etfs...livesoft wrote: ↑Thu Feb 15, 2018 1:20 pm I don't bother looking in the weeds. I own big slugs of VBR, IJS, and a smidgeon of IWN. I don't own any mid-cap funds, but fill out US equities with Total Market, Large-cap, and a little in SPSM (small-cap blend).
For EM, I own broad-market fund VEU (large) and VSS (small) along with a lot of DGS (small EM).
It was a flip of a coin with me for EWX and DGS, ended up going with EWX a few years back. I have an overweight of VSS, VWO and added some EWX and DLS to supplement VWO and VSS.
- Thu Feb 15, 2018 12:49 pm
- Forum: Investing - Theory, News & General
- Topic: Small Cap Value Benchmarks (related to Mid cap,too)
- Replies: 13
- Views: 1905
Small Cap Value Benchmarks (related to Mid cap,too)
Good afternoon, I have a heavy tilt to value, esp. SCV, and have never specifically gone out of my way to add midcap value. We often get a lot of midcaps by default through some "smaller" large, or "bigger" small. I was thinking about it more with some articles about it possibly being overlooked space with potential for a greater premium. I am thinking about rebalancing to VOE (Van MC value, 92% mid, 8 large). However, I own three different small cap values (due to many different plans at work, wife's acct, ira, etc). 1) Workplace 401K Van SC value, benchmark is Russell 2000 (so, think VTWV). Only 3% mid,52% sm, 38 micro). About 40% of my SCV holding 2) ANother retirement acct Van SC value, benchmark CRSP (think vsiax/vb...
- Wed Feb 14, 2018 1:31 pm
- Forum: Investing - Theory, News & General
- Topic: A Case for Higher Int'l Allocation? Larry Swedroe article on home bias
- Replies: 113
- Views: 11126
Re: A Case for Higher Int'l Allocation? Larry Swedroe article on home bias
They are ALWAYS cheap on a PE basis. They were cheap 30 years ago and still returns were bad. With 30 years of poor returns, the PE ratio should be under 5 if earnings grew as fast as US companies and the dividend yield should be double digits. Sure it’s possible foreign stocks will suddenly outperform US stocks over the long run but why would that happen? People argue valuations are lower but they were ALWAYS lower so that’s a poor argument. Not sure what PE you use, but according to PE10, international stocks were very expensive 30 years ago relative to US stocks, and for most of the 1980s and early 1990s had a higher PE10: http://blogs.wf.com/assetmanagement/wp-content/uploads/sites/19/2017/05/blog-20170530-chart5-e1495831731993.png. Ca...
- Wed Feb 14, 2018 1:23 pm
- Forum: Investing - Theory, News & General
- Topic: A Case for Higher Int'l Allocation? Larry Swedroe article on home bias
- Replies: 113
- Views: 11126
Re: A Case for Higher Int'l Allocation? Larry Swedroe article on home bias
They are ALWAYS cheap on a PE basis. They were cheap 30 years ago and still returns were bad. With 30 years of poor returns, the PE ratio should be under 5 if earnings grew as fast as US companies and the dividend yield should be double digits. Sure it’s possible foreign stocks will suddenly outperform US stocks over the long run but why would that happen? People argue valuations are lower but they were ALWAYS lower so that’s a poor argument. Not sure what PE you use, but according to PE10, international stocks were very expensive 30 years ago relative to US stocks, and for most of the 1980s and early 1990s had a higher PE10: http://blogs.wf.com/assetmanagement/wp-content/uploads/sites/19/2017/05/blog-20170530-chart5-e1495831731993.png. Ca...
- Mon Feb 12, 2018 3:03 pm
- Forum: Personal Consumer Issues
- Topic: Visiting SAN FRANCISCO
- Replies: 53
- Views: 11660
Re: Visiting SAN FRANCISCO
Good afternoon friends, My wife and I are going to be in San Francisco later this year for a retreat with my company, and looking to go out a couple days early. (Will be there the first week of August) That being said, we will have a free Saturday and Sunday in the bay area, and wanted to see if any locals could offer up any suggestions on some good ole San Fran cultural experience. Would appreciate any suggestions of local bars/ restaurants that are unique staples of the area, and any suggestions for site seeing, etc. Not looking to do any all day events, as we only have the two free days. Also, if anyone can offer up suggestions of a good district or area to get a hotel for the weekend. Again, maybe close to some good night life and such...
- Fri Feb 02, 2018 1:08 pm
- Forum: Personal Investments
- Topic: Help AA/Fixed In. TIAA Traditional vs Tot Bond Index
- Replies: 4
- Views: 775
Re: Help AA/Fixed In. TIAA Traditional vs Tot Bond Index
I do 50/50 total bond/traditional because, first, I want to be able to rebalance, and second, because I want more fixed income diversification. I don't know which will do better over the next 30-40 years, so I have some of both. Having the stability of traditional is nice. After reading your responses, doing a bit more researching and more thought, I like the idea of having both, too. As I just mentioned in the early post, I think I can probably be fine with keeping about 60-75% in TT with 25-40% total bond. The 25-40, coupled with existing contributions, would be enough to rebalance if/when we saw a 30 or 40% drop... My only question is now that I plan on keeping that 25-40 in total bond, maybe I should instead go short-term bond index in...
- Fri Feb 02, 2018 1:04 pm
- Forum: Personal Investments
- Topic: Help AA/Fixed In. TIAA Traditional vs Tot Bond Index
- Replies: 4
- Views: 775
Re: Help AA/Fixed In. TIAA Traditional vs Tot Bond Index
Using non-liquid Traditional as 100% of your fixed income is not a no-brainer. If you have bought into BH philosophy, then you want to be able to rebalance from fixed income to equity on occasion. (Probably not lately. ;-) ) You wouldn't be able to do that except possibly by redirecting new contributions, and you wouldn't be able to do it at all in retirement. (That said, not everyone rebalances. And if you annuitize the Traditional holdings in retirement it would become a moot point. Traditional would no longer be part of your investment portfolio; it would be an income stream.) If rebalancing is part of your strategy, then something like 50% of fixed income in non-liquid Traditional is probably fine. You could use Total Bond for the othe...
- Thu Feb 01, 2018 12:18 pm
- Forum: Personal Investments
- Topic: 50K to invest for the long hall - VTSMX
- Replies: 18
- Views: 3800
Re: 50K to invest for the long hall - VTSMX
Gents, Thanks for the feedback. I decided that you cannot time the market. This 50k is for the long hall and I dont plan on touching it for 20 years so I just decided to put it in the market today. VTSAX was purchased and if the market crashes tomorrow oh well....at least I will get a chuckle out of it. To be honest with you I am glad its over as I have been thinking about it to much Best of luck to everyone out there Too late :( You're right, good call on not timing the market but IMHO, you are making a bigger assumption in that US is the only game in town. It won't be long before the US is less than half total global equity! That said, it's still good that you're in the market because today's price will be lower 30 years from now, barrin...
- Thu Feb 01, 2018 12:12 pm
- Forum: Personal Investments
- Topic: 50K to invest for the long hall - VTSMX
- Replies: 18
- Views: 3800
Re: 50K to invest for the long hall - VTSMX
VTSMX is Vanguard Total Stock Market Index Fund Investor Shares (0.15%) -- try VTSAX instead. Admiral shares for a lower ER (0.04%). Also, consider VTIAX Vanguard Total International Market Index Fund Admiral (.011%) for the foreign tax credit. Lump sum generally turns out better, but there's also the sleep well at night scenario. If doing it over several months makes you feel better, then that's fine. Just don't wait too long. Time in the market, not timing the market. Good post - data shows lump sum works better and by neglected International, you're making an assumption about market directions. My guess is 20 years from now, VTIAX does a bit better than VTSAX, just based on current valuations. But, it's a guess, so why not go 50/50 or a...
- Thu Feb 01, 2018 11:59 am
- Forum: Investing - Theory, News & General
- Topic: Is changing AA considered market timing?
- Replies: 37
- Views: 2657
Re: Is changing AA considered market timing?
Suppose I have a 90:10 stock bond allocation. If I think that market is too overvalued right now and if I want to change the future contributions to be allocated 50:50, with hopes that if the market tanks again, i can change AA again to a more aggressive one, will this be considered an attempt to time the market? Is there a downside in doing so? Yes, I think it is market timing, esp since it's such a dramatic change. I have thought extensively about AA and esp. FI the last year and it is clear to me what having FI means (for me) and it comes down to Risk/Reward. If you are 80 years old and 100 stocks because you can afford to lose 100% of your stocks, then that is ok because you can take that risk. If you are 50 years old and not healthy, ...
- Thu Feb 01, 2018 11:24 am
- Forum: Personal Investments
- Topic: Help AA/Fixed In. TIAA Traditional vs Tot Bond Index
- Replies: 4
- Views: 775
Help AA/Fixed In. TIAA Traditional vs Tot Bond Index
Hello all, I've read through many of the discussions on the board from the previous years and even checked out morningstar's TIAA board based on some poster suggestions. However, I'd still like to get info/thoughts into just h ow much of TIAA Traditional (or flip it, how much total bond index) I should use for my FI portion of my AA. Some questions first, then some background... Questions: 1) Does the guaranteed Tiaa Traditional ( 9 year lock in , w/ a potential 9 year "exit") with a guaranteed 3%, make things a no brainer for me that I should not even bother with a total bond index, despite the fact Tiaa Trad it is not liquid? 3% floor, current 4% yield, sounds tremendous today in an environment where a total bond index avg coupo...
- Wed Jan 24, 2018 1:13 pm
- Forum: Personal Investments
- Topic: Make me feel good about my bond allocation
- Replies: 46
- Views: 7661
Re: Make me feel good about my bond allocation
I recently started upping my bond allocation and I initially felt the same - it was a drag on returns. Then I decided to stop looking at it that way and start looking at the dollar figure as money I had "safe." Now when I rebalance into bonds, I see my "safe" number go up. Made me feel a little better about it anyway. Do you mind sharing some specifics, like how far you from retirement or better yet, your "goal' number"? Also, your age/current AA? I'm trying to do the same regarding "safe space" funds but it is only taking me so far. Mid 40-s, I'd like to retire in 10 years but my wife wants 20 for her. So, we wouldn't need to touch anything for at least 20 years. So I look at about 20% of the portfo...
- Fri Jan 19, 2018 2:29 pm
- Forum: Personal Investments
- Topic: Make me feel good about my bond allocation
- Replies: 46
- Views: 7661
Re: Make me feel good about my bond allocation
A couple of weeks ago, after some reading, I decided to link the bond percentage in my portfolio to how I become closer to my retirement goal. The closer I become the more conservative I will be, regardless of my age. It makes more sense for me that way. YMMV though! That sounds real interesting! Could you elaborate on that, please. I am 38 years, according to age in bonds or even age in bonds -10, I should be at least 28% in bonds if not more. But I started the game late (4 years ago) due to the fact that I am new comer to US and started from scratch.. When I started I had only few thousands and it didn't make sense to go that much in bonds based on my age so I chose 10% only. Fast forward today, still $50K only in retirement accounts and...
- Thu Jan 18, 2018 4:48 pm
- Forum: Personal Investments
- Topic: Lets talk about some favorite index funds?
- Replies: 32
- Views: 4486
Re: Lets talk about some favorite index funds?
Being extremely new here, started a few other threads and have really been talked into trying this on my own, and been neck deep in reading for days now, I want to get the temperature of everyone here's favorite index fund? It seems Bogle and just about everyone here hates market timing, I understand why. I have read numerous post over the week or two I have scanned this place more frequently and in general the responses given are to just invest in index funds or total stock market funds. Well lets take it a step further for others to read and maybe help narrow down some of their research. What are some of your more favorite index funds and why? There is a lot of there to chose from. Though I'm technically cheating and not listing all inde...
- Thu Jan 18, 2018 4:44 pm
- Forum: Personal Investments
- Topic: Make me feel good about my bond allocation
- Replies: 46
- Views: 7661
Re: Make me feel good about my bond allocation
I recently started upping my bond allocation and I initially felt the same - it was a drag on returns. Then I decided to stop looking at it that way and start looking at the dollar figure as money I had "safe." Now when I rebalance into bonds, I see my "safe" number go up. Made me feel a little better about it anyway. Do you mind sharing some specifics, like how far you from retirement or better yet, your "goal' number"? Also, your age/current AA? I'm trying to do the same regarding "safe space" funds but it is only taking me so far. Mid 40-s, I'd like to retire in 10 years but my wife wants 20 for her. So, we wouldn't need to touch anything for at least 20 years. So I look at about 20% of the portfo...
- Thu Jan 18, 2018 4:37 pm
- Forum: Personal Investments
- Topic: Make me feel good about my bond allocation
- Replies: 46
- Views: 7661
Re: Make me feel good about my bond allocation
A couple of weeks ago, after some reading, I decided to link the bond percentage in my portfolio to how I become closer to my retirement goal. The closer I become the more conservative I will be, regardless of my age. It makes more sense for me that way. YMMV though! That sounds real interesting! Could you elaborate on that, please. Hitting mid-40's, I was 100/0 and didn't mind risk. I plan to work another 10 years, wife wants to work another 20. So, after the run the last years, I knew I should be lowering risk. I'm struggling with homing in on FI AA! I gradually moved from 0 to 33% in the last year but then used about 7% to move back into the Int markets. So, I sit at 74/26 and some days I want to take some of the tremendous gains and go...
- Thu Jan 18, 2018 4:16 pm
- Forum: Personal Investments
- Topic: Lets talk about some favorite index funds?
- Replies: 32
- Views: 4486
Re: Lets talk about some favorite index funds?
Being extremely new here, started a few other threads and have really been talked into trying this on my own, and been neck deep in reading for days now, I want to get the temperature of everyone here's favorite index fund? It seems Bogle and just about everyone here hates market timing, I understand why. I have read numerous post over the week or two I have scanned this place more frequently and in general the responses given are to just invest in index funds or total stock market funds. Well lets take it a step further for others to read and maybe help narrow down some of their research. What are some of your more favorite index funds and why? There is a lot of there to chose from. Though I'm technically cheating and not listing all inde...
- Thu Jan 18, 2018 1:15 pm
- Forum: Personal Investments
- Topic: Lets talk about some favorite index funds?
- Replies: 32
- Views: 4486
Re: Lets talk about some favorite index funds?
Being extremely new here, started a few other threads and have really been talked into trying this on my own, and been neck deep in reading for days now, I want to get the temperature of everyone here's favorite index fund? It seems Bogle and just about everyone here hates market timing, I understand why. I have read numerous post over the week or two I have scanned this place more frequently and in general the responses given are to just invest in index funds or total stock market funds. Well lets take it a step further for others to read and maybe help narrow down some of their research. What are some of your more favorite index funds and why? There is a lot of there to chose from. Though I'm technically cheating and not listing all inde...
- Wed Jan 17, 2018 10:27 am
- Forum: Personal Investments
- Topic: 23 Years Old, Uncomfortable with Target Date Funds
- Replies: 19
- Views: 3030
Re: 23 Years Old, Uncomfortable with Target Date Funds
Emergency funds: Not yet (living with parents, expenses are minimal) Debt: Car loan (around $5.8k left on $6.1k loan) Tax Filing Status: Single Tax Rate: 14.7% Federal, 5.75% State State of Residence: Ohio Age: 23 Desired Asset allocation: 100% stocks / 0% bonds Desired International allocation: undecided% of stocks Size of portfolio: currently about $8k invested tax-advantaged ($4400 in Roth IRA, ~$3600 in 401a). Current retirement assets Taxable None 401a 100% STRS Target Choice 2050 (ER 0.20%) 49% Domestic Equities (Russell 3000) 36% International Equities (MSCI World ex USA Index (NOTE: this index only tracks developed markets)) 10% Fixed Income (Bloomberg Barclays US Universal Bond Index) 5% REIT (FTSE NAREIT Equity REITS Index) Requi...
- Mon Jan 15, 2018 1:32 pm
- Forum: Investing - Theory, News & General
- Topic: Can the Schiller P/E ratio be used for tactical allocation?
- Replies: 13
- Views: 1783
Re: Can the Schiller P/E ratio be used for tactical allocation?
Can the Schiller P/E ratio be used for long-term tactical asset reallocation for the equity portion of one's portfolio? For instance, are any of you increasing your emerging market exposure while the Schiller P/E is low, with expectations that in a decade or two, you might reduce your emerging market allocation once the Schiller P/E ratios for emerging markets vs domestic vs developed international markets have flip flopped? I recognize it might be simplistic to base one's equity allocation based on the Schiller P/E ratios alone, but I am tempted to consider allowing my domestic vs developed vs emerging market equity allocations to fluctuate by 10% or so on this basis. It depends who you ask and their bias. One thing about advice is both s...