Search found 55 matches

by av8r316
Thu Sep 03, 2020 4:00 pm
Forum: Investing - Theory, News & General
Topic: Vanguard Now Has The First Trillion-Dollar Fund
Replies: 66
Views: 6554

Vanguard Now Has The First Trillion-Dollar Fund

Today’s milestone is in the fund world: The Vanguard Total Stock Market Index fund (VTSMX) has become the first fund, ever, with more than $1 trillion in assets under management. https://www.marketwatch.com/articles/stocks-are-down-but-this-fund-is-upvanguard-now-has-the-first-trillion-dollar-fund-...
by av8r316
Sun Aug 16, 2020 8:26 pm
Forum: Investing - Theory, News & General
Topic: VWINX clone [Vanguard Wellesley Income Fund]
Replies: 27
Views: 2470

Re: VWINX clone [Vanguard Wellesley Income Fund]

This is almost certainly from the underperformance of international over the last 10 years. None of your other Visualizer portfolios holds international. Either one believes that international offers diversification or one doesn’t. I don’t disagree. OP asked for a Wellesley clone. Wellesley is prim...
by av8r316
Sun Aug 16, 2020 3:26 pm
Forum: Investing - Theory, News & General
Topic: VWINX clone [Vanguard Wellesley Income Fund]
Replies: 27
Views: 2470

Re: VWINX clone [Vanguard Wellesley Income Fund]

nisiprius wrote: Sun Aug 16, 2020 3:15 pm I don't see any compelling reason not to just go ahead and use Wellesley.
If one has their HSA at Fidelity and would like Wellesley, it can only be had for $75 per purchase.
by av8r316
Sun Aug 16, 2020 3:21 pm
Forum: Investing - Theory, News & General
Topic: VWINX clone [Vanguard Wellesley Income Fund]
Replies: 27
Views: 2470

Re: VWINX clone [Vanguard Wellesley Income Fund]

I’ve done research on the topic and knew that LifeStrategy Conservative Growth (VSCGX) has historically underperformed Wellesley. This is almost certainly from the underperformance of international over the last 10 years. None of your other Visualizer portfolios holds international. Either one beli...
by av8r316
Sun Aug 16, 2020 8:57 am
Forum: Investing - Theory, News & General
Topic: VWINX clone [Vanguard Wellesley Income Fund]
Replies: 27
Views: 2470

Re: VWINX clone [Vanguard Wellesley Income Fund]

I’ve done research on the topic and knew that LifeStrategy Conservative Growth (VSCGX) has historically underperformed Wellesley. This is almost certainly from the underperformance of international over the last 10 years. None of your other Visualizer portfolios holds international. Either one beli...
by av8r316
Sat Aug 15, 2020 10:29 pm
Forum: Investing - Theory, News & General
Topic: VWINX clone [Vanguard Wellesley Income Fund]
Replies: 27
Views: 2470

Re: VWINX clone [Vanguard Wellesley Income Fund]

LifeStrategy Conservative Growth (VSCGX) is also 40/60. This is almost certainly the correct answer. Historically there have been better fits: https://www.portfoliovisualizer.com/backtest-portfolio?s=y&timePeriod=4&startYear=1985&firstMonth=1&endYear=2020&lastMonth=12&calend...
by av8r316
Sat Aug 15, 2020 9:51 pm
Forum: Investing - Theory, News & General
Topic: VWINX clone [Vanguard Wellesley Income Fund]
Replies: 27
Views: 2470

Re: VWINX clone [Vanguard Wellesley Income Fund]

LifeStrategy Conservative Growth (VSCGX) is also 40/60. This is almost certainly the correct answer. Historically there have been better fits: https://www.portfoliovisualizer.com/backtest-portfolio?s=y&timePeriod=4&startYear=1985&firstMonth=1&endYear=2020&lastMonth=12&calend...
by av8r316
Sat Aug 15, 2020 9:08 pm
Forum: Investing - Theory, News & General
Topic: VWINX clone [Vanguard Wellesley Income Fund]
Replies: 27
Views: 2470

Re: VWINX clone [Vanguard Wellesley Income Fund]

40% VIG (Dividend Appreciation ETF)
60% VBIIX / BIV (Intermediate-Term Bond Investor / ETF)

viewtopic.php?t=294034#p5424762
by av8r316
Mon Aug 10, 2020 3:04 pm
Forum: Investing - Theory, News & General
Topic: ETF combo that approximates Wellesley?
Replies: 17
Views: 3101

Re: ETF combo that approximates Wellesley?

For anybody looking to replicate Wellesley at Fidelity or elsewhere, and total return is more important than income, VIG (Dividend Appreciation ETF) has been a better equity proxy than VYM (High Dividend Yield ETF). Backtesting 40% VIG (Dividend Appreciation ETF) 60% VBIIX / BIV (Intermediate-Term B...
by av8r316
Thu May 14, 2020 8:26 pm
Forum: Personal Investments
Topic: Option Trading
Replies: 11
Views: 1142

Re: Option Trading

Buy low sell a little higher. I recently saw a post of someone making incremental gains on a particular stock buy simply riding the wave. In this crazy time stocks (even VTI for that matter) are fluctuating from week to week. If you can make small profits, say increments of $5/share by simply placi...
by av8r316
Thu Apr 02, 2020 11:01 pm
Forum: Personal Finance (Not Investing)
Topic: Can I un-file my 2019 taxes in order to get a bigger stimulus check based on my 2018?
Replies: 30
Views: 2992

Re: Can I un-file my 2019 taxes in order to get a bigger stimulus check based on my 2018?

Therefore, some will receive a check in 2020 and need to pay it back in 2021 That's incorrect. No one has to pay back anything. So if I don't owe any taxes in 2020 I get to keep what I've already been paid? Sounds like the answer is "yes". In short, assuming Kitces is correct, any rebate ...
by av8r316
Thu Apr 02, 2020 10:30 pm
Forum: Personal Finance (Not Investing)
Topic: Can I un-file my 2019 taxes in order to get a bigger stimulus check based on my 2018?
Replies: 30
Views: 2992

Re: Can I un-file my 2019 taxes in order to get a bigger stimulus check based on my 2018?

Therefore, some will receive a check in 2020 and need to pay it back in 2021 That's incorrect. No one has to pay back anything. So if I don't owe any taxes in 2020 I get to keep what I've already been paid? Sounds like the answer is "yes". In short, assuming Kitces is correct, any rebate ...
by av8r316
Thu Apr 02, 2020 9:54 pm
Forum: Personal Finance (Not Investing)
Topic: Can I un-file my 2019 taxes in order to get a bigger stimulus check based on my 2018?
Replies: 30
Views: 2992

Re: Can I un-file my 2019 taxes in order to get a bigger stimulus check based on my 2018?

Therefore, some will receive a check in 2020 and need to pay it back in 2021 That's incorrect. No one has to pay back anything. Are you able to provide a source and/or direct us to the page in the bill? Admittedly, I haven’t seen anything on point, and presumed that an advance means you have to pay...
by av8r316
Thu Apr 02, 2020 9:33 pm
Forum: Personal Finance (Not Investing)
Topic: Can I un-file my 2019 taxes in order to get a bigger stimulus check based on my 2018?
Replies: 30
Views: 2992

Re: Can I un-file my 2019 taxes in order to get a bigger stimulus check based on my 2018?

Therefore, some will receive a check in 2020 and need to pay it back in 2021 That's incorrect. No one has to pay back anything. Are you able to provide a source and/or direct us to the page in the bill? Admittedly, I haven’t seen anything on point, and presumed that an advance means you have to pay...
by av8r316
Thu Apr 02, 2020 8:06 pm
Forum: Personal Finance (Not Investing)
Topic: Can I un-file my 2019 taxes in order to get a bigger stimulus check based on my 2018?
Replies: 30
Views: 2992

Re: Can I un-file my 2019 taxes in order to get a bigger stimulus check based on my 2018?

or is there some provision in the bill that would somehow or other fix the discrepancy when I file my 2020 taxes in 2021? This money is an advance on the 2020 tax credit. So you may be able to qualify based on your 2020 AGI when you file 2020’s taxes. That’s my understanding as well based on some s...
by av8r316
Thu Apr 02, 2020 7:22 pm
Forum: Personal Finance (Not Investing)
Topic: Should I apply for unemployment?
Replies: 14
Views: 1489

Re: Should I apply for unemployment?

babyvinny wrote: Thu Apr 02, 2020 5:27 pm I understand the company may go under in a few months.
Consider whether or not you think the company will have the money to pay your PTO in the future.
by av8r316
Fri Nov 29, 2019 12:33 pm
Forum: Investing - Theory, News & General
Topic: When a company repurchases its shares, does the company become less valuable?
Replies: 61
Views: 4779

Re: When a company repurchases its shares, does the company become less valuable?

I believe shares that a company buys back may or may not be "retired." If not retired, there are still the same number of shares with some being owned (at market value) by the company. The company may choose to re-issue them in the future (sell them on the open market?) or it may (for exa...
by av8r316
Fri Jun 28, 2019 9:25 pm
Forum: Personal Investments
Topic: Merrill Edge alternatives to Vanguard Money Market Funds
Replies: 11
Views: 1868

Re: Merrill Edge alternatives to Vanguard Money Marker Funds

Take a look at JPMorgan Ultra-Short Income ETF (JPST) as well.
by av8r316
Thu Jun 13, 2019 2:31 pm
Forum: Personal Consumer Issues
Topic: I read the memos of Howard Marks and Annual Letters of Buffett. Who else is worth reading?
Replies: 9
Views: 1071

Re: I read the memos of Howard Marks and Annual Letters of Buffett. Who else is worth reading?

fareastwarriors wrote: Thu Jun 13, 2019 12:48 pm Read Jamie Dimon's letters.
+1

For the same reason you should read the letter, you should buy a share of JPM, which has the benefit of receiving it automatically.
by av8r316
Fri May 31, 2019 8:12 am
Forum: Non-US Investing
Topic: Is a mortgage offset account better than investing?
Replies: 9
Views: 762

Re: Is a mortgage offset account better than investing?

Thanks rkhusky, and you make a good point. The longest fixed period I can find is 5 years, but that's at a higher rate (around 4 - 4.1%), which is why I'm leaning toward a 3 year fix. I'm not aware of any Australian lenders offering a fixed rate for the entire term, although I'd love that kind of c...
by av8r316
Fri May 31, 2019 7:55 am
Forum: Non-US Investing
Topic: Is a mortgage offset account better than investing?
Replies: 9
Views: 762

Re: Is a mortgage offset account better than investing?

I came across this concept years ago, but to my knowledge, no major lender in the US offers this product. I attempted to simulate a mortgage offset back when HELOC rates were low by doing a cash-in refinance with extra savings I still wanted liquid, knowing I could re-access via a HELOC draw. As rkh...
by av8r316
Fri May 24, 2019 5:29 pm
Forum: Personal Finance (Not Investing)
Topic: American Express lowered my credit limit
Replies: 61
Views: 6114

Re: American Express lowered my credit limit

I imagine AMEX is required to take into account all outstanding credit lines when calculating various financial ratios. Stakeholders in AMEX should be encouraged to see them working to allocate capital efficiently.
by av8r316
Sun Mar 24, 2019 12:50 am
Forum: Personal Consumer Issues
Topic: Lease a car or buy a car
Replies: 49
Views: 4328

Re: Lease a car or buy a car

Leasing is a win for the manufacturers and dealers if they convince you to buy more expensive cars and/or more frequently. Leasing can be a win for the customer if they understand and exploit the structure and terms of a lease. IF you are disciplined enough to NOT change your behavior (e.g. not get ...
by av8r316
Sat Feb 23, 2019 8:04 pm
Forum: Personal Finance (Not Investing)
Topic: Stumped filing Nanny Taxes from Schedule H using H&R Block
Replies: 5
Views: 834

Re: Stumped filing Nanny Taxes from Schedule H using H&R Block

If your payroll provider collected the income, FICA, and FUTA taxes from you and remitted them to the IRS on your behalf, then I think you would add this amount to your estimated payments. The software should calculate and add the additional Schedule H tax, which should be offset by the additional e...
by av8r316
Sat Jul 28, 2018 11:29 pm
Forum: Personal Consumer Issues
Topic: Regret Public School?
Replies: 75
Views: 7083

Re: Regret Public School?

I think the analysis may be no different for schools than it is for stocks. Good macro and micro fundamentals lead to good performance. A stock doesn’t perform any differently if it is in a taxable or tax advantaged account, and a child likely won’t perform any differently simply because they are in...
by av8r316
Tue Jun 26, 2018 9:16 pm
Forum: Personal Investments
Topic: Investing $1000 into VTSMX ETFs - Good Idea?
Replies: 21
Views: 1515

Re: Investing $1000 into VTSMX ETFs - Good Idea?

If you have or expect to have earned income of at least $1,000 in 2018, I’d recommend opening a Roth IRA at Vanguard and purchasing $1,000 of a Target Retirement Fund (e.g. Vanguard Target Retirement 2065 Fund (VLXVX)). Assuming your future cash available to invest comes from your earned income, you...
by av8r316
Sat Jun 23, 2018 7:39 am
Forum: Personal Finance (Not Investing)
Topic: No interest mortgage
Replies: 6
Views: 802

Re: No interest mortgage

It’s also possible that the lender subsidized all the interest on the first mortgage as an incentive for you to open the HELOC. Not a bad business decision if they feel good about the loans and structured it in such a way that they believed they’d have an opportunity to earn more interest in total.
by av8r316
Sat Jun 23, 2018 7:22 am
Forum: Personal Finance (Not Investing)
Topic: No interest mortgage
Replies: 6
Views: 802

Re: No interest mortgage

It’s possible the lender temporarily waived interest payments as an incentive to open the HELOC. This does not mean that the interest did not still accrue , in which case it would still be owed and payable either over time or all at once. Lenders track principal and interest balances separately, and...
by av8r316
Fri Jun 22, 2018 9:45 pm
Forum: Investing - Theory, News & General
Topic: Small-cap exposure in VBR, ie CRSP small-cap value index fund
Replies: 64
Views: 7173

Re: Small-cap exposure in VBR, ie CRSP small-cap value index fund

Okay, here's a direct look at the holdings of Vanguard Small-Cap Value (VBR) and iShares S&P Small-Cap 600 Value (IJS) according to Morningstar. https://i.imgur.com/qpN3qc7.png?1 Market cap and price/book data are from Yahoo! Finance. I used the price/book ratio for the x axis this time because...
by av8r316
Thu Jun 07, 2018 2:25 am
Forum: Investing - Theory, News & General
Topic: Vanguard's own 401k plan eliminating S&P 500 Index option!
Replies: 86
Views: 9655

Re: Vanguard employees won’t have an S&P 500 index fund in their 401(k) plan

What benefit does Vanguard get from doing this? VTSAX is an overall better investment than VFIAX, but I seriously doubt they did this purely in the best interest of their employees It seems to be part of the general shift away from S&P indices. Vanguard does have hidden S&P Mid 400 and Smal...
by av8r316
Wed May 30, 2018 8:03 am
Forum: Investing - Theory, News & General
Topic: To be or not to be complex, that is the question
Replies: 146
Views: 16532

Re: To be or not to be complex, that is the question

This is basically Occam's Razor, a principle to which I assume many BH subscribe.

Add: I see I was beat to it by book lover
by av8r316
Wed May 23, 2018 11:16 pm
Forum: Personal Finance (Not Investing)
Topic: 529 maximum contribution for myself as beneficiary
Replies: 4
Views: 1226

Re: 529 maximum contribution for myself as beneficiary

Check and see if your 529 plan allows a 5-year contribution. Colorado's plan states: As an individual, you can make a lump sum contribution up to $75,000 (5-years at $15,000 for each year) to get the immediate benefit of five years’ worth of gift tax exclusions. For each and as many Beneficiaries a...
by av8r316
Thu Sep 28, 2017 9:35 am
Forum: Personal Consumer Issues
Topic: Two year lease vs Buy and hold 10 years. A wash?
Replies: 54
Views: 5877

Re: Two year lease vs Buy and hold 10 years. A wash?

I totally agree. I think some of the conventional wisdom about leasing may not apply as broadly as I thought. I had essentially ignored it as foolish, but when I ran some numbers it seems that it could be best if the price is right. I did the same and arrived at the same conclusion. The “Money Fact...
by av8r316
Fri Sep 22, 2017 12:05 am
Forum: Investing - Theory, News & General
Topic: What happens if... [trying to understand public debt in the age of fiat currency]
Replies: 6
Views: 1142

Re: What happens if... [trying to understand public debt in the age of fiat currency]

In this scenario, where is the Fed getting the money to begin with? The treasury has to first 'borrow' the money before the bank/Fed can create it... so the debt owed by the treasury would go up by the amount the treasury is borrowing. :confused It’s actually the other way around. The Fed can liter...
by av8r316
Wed Sep 20, 2017 11:02 pm
Forum: Personal Investments
Topic: Does bid-ask spread matter with automatic reinvestment?
Replies: 14
Views: 1185

Re: Does bid-ask spread matter with automatic reinvestment?

If you reinvest dividends in a mutual fund, the fund has to purchase the underlying assets, and there will be a spread there, too. I don't think there's much of a difference. One you see very plainly, the other you don't. I may ignorant but aren't mutual funds ought and sold at a single price at en...
by av8r316
Mon Jul 24, 2017 9:45 pm
Forum: Personal Investments
Topic: Giving Stocks as Gifts
Replies: 3
Views: 552

Re: Giving Stocks as Gifts

I have no experience with this site, but you may wish to take a look at stockpile.com. From what I can tell, you buy a gift card redeemable for whichever equity you select, and then the recipient creates an account and redeems the card for that equity. It appears that you can buy a generic card, or ...
by av8r316
Mon Jul 17, 2017 11:59 pm
Forum: Personal Finance (Not Investing)
Topic: 529 for child - Gift?
Replies: 6
Views: 1285

Re: 529 for child - Gift?

Thanks to all for your help. I think I have found the answer and that is I can rename the beneficiary from myself to my son without tax consequences or considering it a gift . Per 2016 IRS publication 970 "Changing the Designated Beneficiary There are no income tax consequences if the designat...
by av8r316
Sun Jul 16, 2017 11:43 pm
Forum: Personal Finance (Not Investing)
Topic: gaming the mortgage interest deduction
Replies: 18
Views: 3177

Re: gaming the mortgage interest deduction

In addition to shifting income from a lower generation to a higher generation, you'd also have a lower basis in your house for purposes of deductions or gains.
by av8r316
Fri Jun 16, 2017 10:05 pm
Forum: Personal Finance (Not Investing)
Topic: Illinois 529 plan - any risk
Replies: 3
Views: 1681

Re: Illinois 529 plan - any risk

I'm also invested in the Bright Start 529 Savings Plan, and although I've had similar thoughts, my conclusion is that these assets are safe. Absent an unlikely change to the Illinois Constitution, I don't believe Illinois or a bankruptcy court (under future federal law and absent a change to the US ...
by av8r316
Mon Jun 12, 2017 9:23 pm
Forum: Investing - Theory, News & General
Topic: Where To Invest Cash for Children?
Replies: 6
Views: 1570

Re: Where To Invest Cash for Children?

I do not think a 529 would work, because a 529 would typically be in your name (with child as beneficiary). I can't speak for every 529, but I do know that many do allow for a UTMA/UGMA owned account, in which the minor is the only permitted beneficiary. I imagine, but cannot say with certainty, th...
by av8r316
Sat Jun 03, 2017 3:03 pm
Forum: Personal Investments
Topic: Help with how much I lose out on if I pay off car instead of maxing out $5,500 for Roth this year?
Replies: 44
Views: 4742

Re: Help with how much I lose out on if I pay off car instead of maxing out $5,500 for Roth this year?

So even if you completely ignore the higher return you get by paying off the loan relative to a comparable risk-free rate, the penalty of losing the tax-free space for 30 years is relatively small--certainly an order of magnitude less than the exaggerated examples in some of the replies. Kevin I ag...
by av8r316
Sat Jun 03, 2017 12:45 pm
Forum: Personal Investments
Topic: Help with how much I lose out on if I pay off car instead of maxing out $5,500 for Roth this year?
Replies: 44
Views: 4742

Re: Help with how much I lose out on if I pay off car instead of maxing out $5,500 for Roth this year?

I've read that if you only have to delay funding the roth a year or two it's not much of a concern, so I was curious how much in actual numbers I would be missing out on if I delayed the Roth for one year to pay off my car. I'm trying to separate the emotional high of getting the car paid off vs st...
by av8r316
Sat Jun 03, 2017 9:49 am
Forum: Personal Investments
Topic: Help with how much I lose out on if I pay off car instead of maxing out $5,500 for Roth this year?
Replies: 44
Views: 4742

Re: Help with how much I lose out on if I pay off car instead of maxing out $5,500 for Roth this year?

If you can do both, do both. Also know that you can withdraw your Roth IRA contributions (but not earnings) tax/penalty-free, so if doing both will deplete your cash reserves below your comfort level, you could make the contribution, leave it in a MMF or short-term bond fund, and take it back out if...
by av8r316
Sat Jun 03, 2017 8:29 am
Forum: Personal Investments
Topic: Help with how much I lose out on if I pay off car instead of maxing out $5,500 for Roth this year?
Replies: 44
Views: 4742

Re: Help with how much I lose out on if I pay off car instead of maxing out $5,500 for Roth this year?

Given the choice, since IRA contributions are use-it-or-lose-it, I would personally make the (Roth) IRA contribution without even giving it much thought. At 4%, a $5,500 contribution today would be over $20,000 when you're 65. You can Google for various calculators to find tabular and graphical mode...
by av8r316
Wed May 17, 2017 11:12 pm
Forum: Personal Investments
Topic: Need help about put option I sold!
Replies: 6
Views: 1661

Re: Need help about put option I sold!

Will Tdameritrade ever convert that option into SPY, or must I cover that option and buy SPY? Assuming SPY stays under 239 through Friday, this will almost certainly be automatically exercised on Friday, but could be exercised anytime between now and expiration. Technically, a holder may choose not...
by av8r316
Tue May 16, 2017 10:57 pm
Forum: Personal Investments
Topic: Should I transfer my investment in real estate to stocks??
Replies: 19
Views: 2023

Re: Should I transfer my investment in real estate to stocks??

Why would you only be able to get 500k if it's worth 850k? I agree that it's weird - when I was talking to the rep of the firm, he was saying the the property value went up significantly, but for me to cash out, I would need to sell my share to the willing buyer who would probably pay ~400k. That s...
by av8r316
Tue May 02, 2017 2:14 pm
Forum: Personal Investments
Topic: Vanguard: Buy in Shares instead of Buy in Dollars?
Replies: 22
Views: 3635

Re: Vanguard: Buy in Shares instead of Buy in Dollars?

I called Vanguard yesterday, and was told that a buy order for Vanguard Funds could be denominated in shares, but only as an additional purchase. Not seeing an option to buy additional "shares" in a Fund, I called back today, and after a brief hold, was told that the information I received...
by av8r316
Sun Apr 30, 2017 12:27 pm
Forum: Personal Investments
Topic: Vanguard: Buy in Shares instead of Buy in Dollars?
Replies: 22
Views: 3635

Re: Vanguard: Buy in Shares instead of Buy in Dollars?

I think I know what you are trying to do and it would be nice to be able to say that $x were purchased on the DOB but if you told a little white lie and were off by a few dollars would any harm be done? I don't think the message you will be trying to send will be diminished. :twisted: This is Bogle...
by av8r316
Sun Apr 30, 2017 12:18 pm
Forum: Personal Investments
Topic: Vanguard: Buy in Shares instead of Buy in Dollars?
Replies: 22
Views: 3635

Re: Vanguard: Buy in Shares instead of Buy in Dollars?

Just for my own curiosity, because you say clearly that you don't want the ETF, why not? Why not buy VTI? I know it's splitting hairs, but I'd like the total return to be as accurate as possible, and I view the MF shares as a bit more pure (no spreads or premiums/discounts). If VTI doesn't go back ...