Search found 1025 matches

by Tyler Aspect
Tue May 22, 2018 12:13 pm
Forum: Investing - Help with Personal Investments
Topic: Total Bond Market
Replies: 12
Views: 1611

Re: Total Bond Market

Just wondering, what affect would a TLH event somewhere along the rising yield period have on the 7 year waiting period you speak of? (assume buy back the same fund after the wash period has expired) Is the only drawback of doing this the fact that you have now reset the cost basis of your shares t...
by Tyler Aspect
Tue May 22, 2018 11:22 am
Forum: Investing - Help with Personal Investments
Topic: Total Bond Market
Replies: 12
Views: 1611

Re: Total Bond Market

Patient Waiting a solution to Yield Increases Patient waiting is a possible solution to the net asset loss you are experiencing. 7 years of extra dividend equalizes an upfront net asset value loss for an intermediate term bond fund. You just have to hold the fund for 7 years after the fund's yield ...
by Tyler Aspect
Mon May 21, 2018 8:25 pm
Forum: Investing - Help with Personal Investments
Topic: Equal Weighting
Replies: 14
Views: 825

Re: Equal Weighting

I would skip the international selections in your pension plan. Its setup is too complicated. Having a developed market index in the taxable account or a Roth IRA should be the preferred move. Asset allocation is all about coming up with a suitable weighting. Equal weighting won't do at all.
by Tyler Aspect
Mon May 21, 2018 8:14 pm
Forum: Investing - Theory, News & General
Topic: Do bonds make sense if you are more than 10 years from retirement?
Replies: 11
Views: 1197

Re: Do bonds make sense if you are more than 10 years from retirement?

Bonds provide very valuable stability to a portfolio. If you only focus on return but losing sight on risk, that is not a balanced view.
by Tyler Aspect
Sun May 20, 2018 11:01 pm
Forum: Investing - Theory, News & General
Topic: Buffett says Bonds are a terrible investment now. What should we invest in besides stocks?
Replies: 76
Views: 9337

Re: Buffett says Bonds are a terrible investment now. What should we invest in besides stocks?

We are Bogleheads, not Buffetheads. Buffett has a heavy institutional leaning that some of his personal finance recommendations sound very cryptic and strange.
by Tyler Aspect
Sun May 20, 2018 9:59 pm
Forum: Investing - Help with Personal Investments
Topic: need advice on books for teenagers
Replies: 8
Views: 735

Re: need advice on books for teenagers

One of the best personal finance book for young people is "Get a Financial Life" by Beth Kobliner. It received an update in year 2017, so the content is very applicable currently. Beth covers the topic of managing military service benefits, which is a bonus coverage above the common generic topics. ...
by Tyler Aspect
Sun May 20, 2018 8:00 pm
Forum: Investing - Help with Personal Investments
Topic: Newly widowed, how do I invest 1.5 million life ins. proceeds
Replies: 64
Views: 6254

Re: Newly widowed, how do I invest 1.5 million life ins. proceeds

Here's my questions: 1. Would the 3 or 4 fund portfolio be a good fit for me, considering my age, my regular income needs, and my inexperience in investing? 2. Should I consider the .03% financial planning service, or would the free phone advice be sufficient? Or do I need a bank or financial plann...
by Tyler Aspect
Sun May 20, 2018 3:06 pm
Forum: Investing - Theory, News & General
Topic: Three-fund portfolio returns and variance drain
Replies: 100
Views: 8145

Re: Three-fund portfolio returns and variance drain

Let's do this thought experiment: It is true that when you always use multiplication as an operator, an reduction of 10% is stronger than an increase of 10%. However, if you use division to model a loss then gains can be viewed in the same footing as loss. For example, I invest $100 in something, an...
by Tyler Aspect
Sun May 20, 2018 1:47 pm
Forum: Investing - Help with Personal Investments
Topic: Buying an etf (bid ask spread)
Replies: 5
Views: 420

Re: Buying an etf (bid ask spread)

Quotes of ETFs are only accurate during market hours. That is just what I observe. Maybe other people will chime in on the underlying reasons.
by Tyler Aspect
Sun May 20, 2018 1:17 pm
Forum: Investing - Help with Personal Investments
Topic: How long to hold 80/20 asset allocation
Replies: 52
Views: 7129

Re: How long to hold 80/20 asset allocation

The most important preparation step in investing is to thinking about how you will determine your asset allocation in terms of the percentages of stocks versus bonds. When we are young we can hold more stocks for a higher return. As we grow old then we should hold more bonds to have more stability. ...
by Tyler Aspect
Sun May 20, 2018 12:58 pm
Forum: Investing - Help with Personal Investments
Topic: Help me streamline to a 3 or 4 fund strategy
Replies: 11
Views: 953

Re: Help me streamline to a 3 or 4 fund strategy

1. Within my 401K fund offering I have an institutional fund that tracks the SP500, but no total stock market index option. Any advice on how to mimic a complete stock coverage from my available funds? 2. When looking to park my $10K to start a housing downpayment fund, I am looking at VMSXX or a C...
by Tyler Aspect
Sun May 20, 2018 11:57 am
Forum: Investing - Help with Personal Investments
Topic: Investment allocation
Replies: 13
Views: 554

Re: Investment allocation

US tax laws impact the decision that we make about the kind of investments that should go into our investment accounts. I have summarized below the ordering of placement preference for each investment types. the preferred location for each investment type in order of most preferred location to least...
by Tyler Aspect
Sat May 19, 2018 7:54 pm
Forum: Investing - Help with Personal Investments
Topic: Short term investment suggestion
Replies: 3
Views: 285

Re: Short term investment suggestion

You can certainly buy some US Treasury Notes on the secondary market that matures in 9 months.
by Tyler Aspect
Fri May 18, 2018 11:29 am
Forum: Investing - Help with Personal Investments
Topic: How does the process work for getting back funds from a Roth?
Replies: 9
Views: 737

Re: How does the process work for getting back funds from a Roth?

I think it is just as simple as selling shares and have the money go to your bank's checking account. You can withdraw your contributions, but its generated earnings should not be withdrawn. However, I would not put the emergency cash in the Roth IRA account because emergency situations may occur mo...
by Tyler Aspect
Fri May 18, 2018 11:21 am
Forum: Investing - Help with Personal Investments
Topic: CD ladder setup with Merrill ??
Replies: 5
Views: 575

Re: CD ladder setup with Merrill ??

It is less tax efficient to hold taxable fixed income when you can hold them within your TSP accounts. G fund is a great choice for fixed income; possibly 75% G, 25% C. You do not appear to have any international stocks, so take a look at FTSE Developed Markets ETF (VEA).
by Tyler Aspect
Thu May 17, 2018 7:37 pm
Forum: Investing - Help with Personal Investments
Topic: Cash instead of bonds for 3-fund
Replies: 22
Views: 1983

Re: Cash instead of bonds for 3-fund

Fidelity's money market funds have higher expenses compared to Vanguard's offering. Fidelity Government Money Market Fund has an expense ratio of 0.42%. You need to check the expense ratios of your 401k fund selections to make sure you still keep your costs low. Patient waiting is a possible solutio...
by Tyler Aspect
Thu May 17, 2018 7:14 pm
Forum: Personal Finance (Not Investing)
Topic: Having trouble figuring out expected expenses in retirement
Replies: 37
Views: 2504

Re: Having trouble figuring out expected expenses in retirement

My wild guess for a couple at age 55 with 3 teens would have a medical expense at 30% of total annual expense. Obviously it would depend heavily on the health insurance market situation at that time. Yikes that is more than I thought. I think I calculated healthcare at about 15k annual from my plan...
by Tyler Aspect
Thu May 17, 2018 3:27 pm
Forum: Investing - Help with Personal Investments
Topic: Long term investment in grains/wheat
Replies: 22
Views: 1297

Re: Long term investment in grains/wheat

Stay with broadly diversified index funds. These zany neat ideas will mess up your investments if you do not rein them in.
by Tyler Aspect
Thu May 17, 2018 1:06 pm
Forum: Personal Finance (Not Investing)
Topic: Having trouble figuring out expected expenses in retirement
Replies: 37
Views: 2504

Re: Having trouble figuring out expected expenses in retirement

My wild guess for a couple at age 55 with 3 teens would have a medical expense at 30% of total annual expense. Obviously it would depend heavily on the health insurance market situation at that time.
by Tyler Aspect
Wed May 16, 2018 7:01 pm
Forum: Investing - Help with Personal Investments
Topic: Asset Allocation Mechanics
Replies: 17
Views: 1364

Re: Asset Allocation Mechanics

The most important preparation step in investing is to thinking about how you will determine your asset allocation in terms of the percentages of stocks versus bonds. When we are young we can hold more stocks for a higher return. As we grow old then we should hold more bonds to have more stability. ...
by Tyler Aspect
Tue May 15, 2018 10:37 am
Forum: Investing - Help with Personal Investments
Topic: Vanguard Junk Bond fund
Replies: 65
Views: 3596

Re: Vanguard Junk Bond fund

The purpose of owning bond is for stability. Junk bonds do not share that attribute during a recession. Not always so. My investments are large enough for me to be unconcerned about stability or volatility. I want income. If the stock market tanks then the yield will probably rise as happened in 20...
by Tyler Aspect
Tue May 15, 2018 10:21 am
Forum: Investing - Help with Personal Investments
Topic: recommend funds to invest in 2018
Replies: 2
Views: 449

Re: recommend funds to invest in 2018

You only provided minimum details so far. Given the ten year investment horizon, take a look at this example portfolio.

50% US stock (ITOT)
50% US Treasury Notes (September 2019 maturity date)
by Tyler Aspect
Tue May 15, 2018 10:04 am
Forum: Investing - Help with Personal Investments
Topic: Vanguard Junk Bond fund
Replies: 65
Views: 3596

Re: Vanguard Junk Bond fund

The purpose of owning bond is for stability. Junk bonds do not share that attribute during a recession.
by Tyler Aspect
Mon May 14, 2018 10:26 pm
Forum: Investing - Help with Personal Investments
Topic: Review of assert allocation for possible house downpayment
Replies: 12
Views: 710

Re: Review of assert allocation for possible house downpayment

At retirement near age 58 you could move to a low cost living area and purchase a house with stock money all cash down.
by Tyler Aspect
Mon May 14, 2018 7:44 pm
Forum: Investing - Help with Personal Investments
Topic: Review of assert allocation for possible house downpayment
Replies: 12
Views: 710

Re: Review of assert allocation for possible house downpayment

I do not recommend buying a house in California. The price is often out of reach. Even to save for it will have you invest the downpayment conservatively for a long time. That is a big opportunity cost versus deciding not to buy a house. Not purchasing a house will get you a mostly stock taxable ac...
by Tyler Aspect
Mon May 14, 2018 7:06 pm
Forum: Investing - Help with Personal Investments
Topic: portfolio question
Replies: 2
Views: 310

Re: portfolio question

I need a little help on the best way to approximate Total Stock Market with my defined contribution plan. I am a teacher in SC using the ORP instead of the defined benefit pension. I am finishing my 20th year and have spent a lot of time trying to educate myself to handle this better. I use VALIC b...
by Tyler Aspect
Mon May 14, 2018 6:56 pm
Forum: Investing - Help with Personal Investments
Topic: Are bonds really needed - why not 100% stocks?
Replies: 71
Views: 5319

Re: Are bonds really needed - why not 100% stocks?

This is a fairly misleading statistic, given that roughly 80% of the time period used here encompasses one of the greatest multi-decade bond bull markets in US history. Interest rates on the 10 year Treasury dropped from ~15% in the early 1980's to ~3% today. One doesn't need to be a clairvoyant to...
by Tyler Aspect
Sat May 12, 2018 9:17 pm
Forum: Investing - Help with Personal Investments
Topic: Question about Asset Allocation
Replies: 8
Views: 737

Re: Question about Asset Allocation

I just used Morningstar's X-ray to check my asset allocation and was surprised with the results below. It now feels like I am way tilted towards Large Value/Core/Growth compared to the Total Stock Market. It's probably because I have VINIX (Vanguard Institutional Index) which makes up 26% of my por...
by Tyler Aspect
Sat May 12, 2018 9:07 pm
Forum: Investing - Help with Personal Investments
Topic: Review of assert allocation for possible house downpayment
Replies: 12
Views: 710

Re: Review of assert allocation for possible house downpayment

I do not recommend buying a house in California. The price is often out of reach. Even to save for it will have you invest the downpayment conservatively for a long time. That is a big opportunity cost versus deciding not to buy a house. Not purchasing a house will get you a mostly stock taxable acc...
by Tyler Aspect
Sat May 12, 2018 11:11 am
Forum: Personal Finance (Not Investing)
Topic: How can I keep track of my monthly spendings?
Replies: 36
Views: 2981

Re: How can I keep track of my monthly spendings?

I wrote my own application last year to replace my usage of Quicken. My application "Cash Flow" doesn't keep track of investments with variable net asset values, but it can track income, expense, and budgets. It is capable of accurately tracking cash expenses. It runs on Windows with Java runtime en...
by Tyler Aspect
Sat May 12, 2018 1:23 am
Forum: Investing - Help with Personal Investments
Topic: Investment advice; saving for a new home with extra cash
Replies: 7
Views: 569

Re: Investment advice; saving for a new home with extra cash

I would say two year US Treasury Notes. You can buy them from a taxable brokerage account such as Vanguard or Fidelity. Another alternative would be Vanguard Short-Term Treasury Index Fund.
by Tyler Aspect
Thu May 10, 2018 7:56 pm
Forum: Investing - Help with Personal Investments
Topic: Inheritance - all blue chip - now what?
Replies: 12
Views: 1820

Re: Inheritance - all blue chip - now what?

The simple answer is to sell all individual stocks and exchange to Vanguard Balanced Index (60% stock / 40% bond allocation). 60% stock / 40% bond is a good compromise between growth and capital preservation. Since this is only one fund the management should be really easy.
by Tyler Aspect
Thu May 10, 2018 1:31 pm
Forum: Investing - Help with Personal Investments
Topic: Paying for Volatility Reduction
Replies: 8
Views: 486

Re: Paying for Volatility Reduction

Your posted examples were about moving your allocation closer to the efficient frontier, therefore the standard deviation went down. What if we have an example where we are already very close to the efficient frontier, but replace a small part of US stock with REIT, then small-cap value? I used my f...
by Tyler Aspect
Thu May 10, 2018 12:53 pm
Forum: Investing - Help with Personal Investments
Topic: How do you quantify the risk differential between 85/15 and 70/30?
Replies: 70
Views: 5704

Re: How do you quantify the risk differential between 85/15 and 70/30?

You can use the portfolio backtest feature of PortfolioVisualizer to compare portfolio 1 (85% stock / 15% bond) versus portfolio 2 (70% stock / 30% bond). The more conservative portfolio had a slightly less draw-down during the last recession, but the average annual return was slightly less as well....
by Tyler Aspect
Wed May 09, 2018 12:55 pm
Forum: Investing - Help with Personal Investments
Topic: advice on investment allocation after retirement?
Replies: 8
Views: 615

Re: advice on investment allocation after retirement?

Take a look at this moderately conservative Three Funds portfolio. Vanguard Total Stock Market Index Admiral (VTSAX) : 32% Vanguard Developed Markets Index Admiral (VTMGX) : 8% Vanguard Total Bond Market Index Admiral (VBTLX) : 60% Maximum draw-down during the last recession was -21.35%, while avera...
by Tyler Aspect
Wed May 09, 2018 11:43 am
Forum: Investing - Help with Personal Investments
Topic: Paying for Volatility Reduction
Replies: 8
Views: 486

Re: Paying for Volatility Reduction

A Three Fund portfolio is already hugging very close to the efficient frontier. As long as your fund selections are from the Three Fund portfolio then you are already diversified. Volatility is highly correlated to risk; therefore it sounded a bit off when you claim there is a way to obtain an ident...
by Tyler Aspect
Wed May 09, 2018 11:21 am
Forum: Investing - Help with Personal Investments
Topic: adding large cap to my portfolio - bad idea ?
Replies: 6
Views: 295

Re: adding large cap to my portfolio - bad idea ?

I have total stock ( 65 % ) , total international ( 15 % ) , muni bond ( 10 % ). I would love to take a risk and buy few individual stocks but instead of doing that I though i might just buy large cap index at vanguard ...... Didn't you say your desired bond percentage was 25% of the portfolio? Are...
by Tyler Aspect
Tue May 08, 2018 11:37 pm
Forum: Investing - Help with Personal Investments
Topic: Breaking Up and Staying On Good Terms with an Advisor
Replies: 17
Views: 1569

Re: Breaking Up and Staying On Good Terms with an Advisor

This is a relationship based on money and fees. Once that fee is cut off, then the relationship should rightfully end. The only mitigating factor are your parents. The advisor might not want to offend your parents if he wishes to keep your parents' account. However, this can work both ways; your par...
by Tyler Aspect
Tue May 08, 2018 12:31 am
Forum: Investing - Help with Personal Investments
Topic: Nationwide Indexed Annuity
Replies: 7
Views: 585

Re: Nationwide Indexed Annuity

Run away from these products. Indexed annuities are the worst things you could buy.
by Tyler Aspect
Tue May 08, 2018 12:29 am
Forum: Investing - Help with Personal Investments
Topic: New Investor
Replies: 14
Views: 775

Re: New Investor

Vanguard® Institutional Index Fund - Institutional Shares in the 457 program would give you S&P 500 exposure.

Your government pension's growth is very bond-like. You can treat it as bond currently.

Do keep a 6 month expense worth of emergency cash; just in case.

Good luck!
by Tyler Aspect
Sat May 05, 2018 2:11 am
Forum: Investing - Help with Personal Investments
Topic: Confused by Fees - Valic 401k
Replies: 4
Views: 970

Re: Confused by Fees - Valic 401k

My wife's 401k is with Valic and I am a bit confused about certain fund fees. Typical fund expense ratios I get. For example one fund MUETX, lists a net expense ratio of 0.85%, that I understand. However, if I click on another option for Fund Fees in the side bar, I see the following: VALIC receive...
by Tyler Aspect
Fri May 04, 2018 3:25 pm
Forum: Investing - Help with Personal Investments
Topic: Two Fund Across Three IRAs
Replies: 14
Views: 510

Re: Two Fund Across Three IRAs

At your age you should have 23% bond in your portfolio. Dave Ramsey's all stock recommendation is not a good one. DR isn't the only 'guru' who says 100% stocks. JL Collins says it on his website and in his book. Joshua Sheats says it on his podcast Radical Personal Finance. It's not unheard of. Bon...
by Tyler Aspect
Fri May 04, 2018 2:43 pm
Forum: Investing - Help with Personal Investments
Topic: Vanguard Target retirement funds
Replies: 21
Views: 2075

Re: Vanguard Target retirement funds

Adding a target retirement fund when you already have a Three Funds portfolio just muddies the water in my opinion. Target retirement funds are intended to be your first fund that someday you can graduate out of it.
by Tyler Aspect
Fri May 04, 2018 1:59 pm
Forum: Investing - Help with Personal Investments
Topic: Two Fund Across Three IRAs
Replies: 14
Views: 510

Re: Two Fund Across Three IRAs

Hi. I've asked for a lot of advice lately that is quite different. It's from lots of paralysis from analysis. Here's my latest conundrum. If I'd like to do the three fund portfolio less bonds how do I do it across three IRAs? Here's what we have: SEP IRA that will not be added to (previous employer...
by Tyler Aspect
Fri May 04, 2018 10:44 am
Forum: Personal Finance (Not Investing)
Topic: Interest only loan
Replies: 24
Views: 2071

Re: Interest only loan

In a high inflation driven recession you can see a combination of high interest rate and a recession happening at the same time.
by Tyler Aspect
Thu May 03, 2018 10:08 pm
Forum: Personal Finance (Not Investing)
Topic: Interest only loan
Replies: 24
Views: 2071

Re: Interest only loan

So I have an interest only loan tied to my condo I own that I pay 1m libor plus 162 bps on (currently 3.5%). Assuming top tax bracket, that's an after tax rate of roughly 2.25%. I'm relatively young (34), and have built up a substantial nest egg. My gut tells me I'm supposed to continue to pile $ i...
by Tyler Aspect
Sun Apr 29, 2018 4:58 pm
Forum: Investing - Help with Personal Investments
Topic: $750,000 in Cash at 30
Replies: 14
Views: 4074

Re: $750,000 in Cash at 30

You appear to be a conservative investor, so 70% stock / 30% bond could work for you. On the stock side, 75% US stock / 25% international stock.

You could look into creating a 401k program for your small business to increase tax deferred investing.
by Tyler Aspect
Sat Apr 28, 2018 12:22 pm
Forum: Investing - Help with Personal Investments
Topic: Retirement Plan funds Transfer question
Replies: 1
Views: 165

Re: Retirement Plan funds Transfer question

My daughter has just left her job and retains a 403(b) plan with that company. She would like to transfer it to a TIRA to have better control of the funds. The question I have is whether she can make that transfer and continue to make "backdoor" Roth contributions without tax consequences. Somewher...
by Tyler Aspect
Sat Apr 28, 2018 12:03 pm
Forum: Investing - Help with Personal Investments
Topic: Short term bonds appropriate for this money?
Replies: 5
Views: 398

Re: Short term bonds appropriate for this money?

For vacation savings I would just put the $3k into two year US Treasury Notes. For car savings a short term bond index fund like the one you mentioned could work. Usually I turn off the dividend reinvestment features of all my taxable funds and invests in units of $1000, in order to avoid small lots...