Search found 92 matches

by miket29
Tue Jun 04, 2019 4:19 pm
Forum: Personal Finance (Not Investing)
Topic: What is/ was your career and would you recommend it now?
Replies: 482
Views: 51711

Re: What is/ was your career and would you recommend it now?

EE working in digital hardware design. Got into the field kinda as a result of circumstances. In the early 1980s the Federal Reserve raised interest rates to flight inflation and the economy went into a tailspin. But the LA Times still had an extra classified section with jobs for engineers by the b...
by miket29
Thu May 30, 2019 12:55 pm
Forum: Personal Investments
Topic: Overlapping Funds? Figuring Out Asset Allocation
Replies: 12
Views: 823

Re: Overlapping Funds? Figuring Out Asset Allocation

with years of investing ahead of you, I suggest you consider tilting your portfolio. A brief discussion can be found at https://www.bogleheads.org/wiki/Value_tilting_-_stock and a more lengthy discussion in the book "Your Complete Guide to Factor‑Based Investing" as well as other websites and books....
by miket29
Thu May 30, 2019 12:38 pm
Forum: Personal Investments
Topic: Financial Samurai Blog -Passive Income Portfolio - is this guy legit or am I going off track?
Replies: 28
Views: 7420

Re: Financial Samurai Blog -Passive Income Portfolio - is this guy legit or am I going off track?

Hi, Recently I came across a blog post by the financial sumurai on his passive income portfolio and alternative investments. As part of my follow up into what he wrote, I wanted to ask everyone here their thoughts and opinions. I have 200k in my 3 fund and a 100k CD maturing this year (29 yrs old)....
by miket29
Fri May 24, 2019 8:54 pm
Forum: Personal Investments
Topic: Does tuning out mean missing out?
Replies: 23
Views: 3378

Re: Does tuning out mean missing out?

Why no Roth? We contributed to a Roth IRA in the past for several years until we hit the income limit to do a standard RothIRA contribution. We both now have rollover IRAs (from previous employers) that complicates doing a backdoor Roth IRA contribution. Be sure to check with your current 401K plan...
by miket29
Fri May 24, 2019 8:33 pm
Forum: Personal Investments
Topic: I have $100k in savings. Dollar cost averaging or lump sum investment?
Replies: 13
Views: 1594

Re: I have $100k in savings. Dollar cost averaging or lump sum investment?

Bogleheads! Would love some advice. I have ~$100k sitting in a money market at 2.2%. I want to get this money into the market and working for me in some low cost funds. Was this money from a lump-sum payout of some sort, or from steady savings? If the latter my advice is to do nothing until you can...
by miket29
Fri May 17, 2019 12:16 am
Forum: Personal Investments
Topic: Tilting very slightly towards small & mid caps. Is this a good idea?
Replies: 36
Views: 2878

Re: Tilting very slightly towards small & mid caps. Is this a good idea?

My main concern is I want to tilt enough to make a difference, but not enough to where I am extremely aggressive and volatile. Don't do it. As Larry Swedroe writes, factor returns are long-term results. The benefits may not show up for a decade or more. So that means they may underperform for a lon...
by miket29
Wed May 15, 2019 7:05 pm
Forum: Personal Investments
Topic: Fisher Investments--again
Replies: 16
Views: 3046

Re: Fisher Investments--again

see a similar discussion about finding an advisor in viewtopic.php?f=1&t=281099
by miket29
Wed May 15, 2019 7:02 pm
Forum: Personal Investments
Topic: One time fee only advisor - costs?
Replies: 20
Views: 1824

Re: One time fee only advisor - costs?

another advisor that seems to follow a Bogle-type approach using index funds is Allan Roth at https://daretobedull.com/
by miket29
Mon May 06, 2019 10:25 pm
Forum: Personal Investments
Topic: Mega Backdoor Roth vs. EF/Taxable
Replies: 11
Views: 1125

Re: Mega Backdoor Roth vs. EF/Taxable

401K Loan: I can also borrow up to 50% of the 401K balance or $50K (whichever is greater) for liquidity if needed Be cautious about using this. If you leave your job for any reason, even if it is due to a layoff, the loan must be repaid by April of the following year. See https://www.creditkarma.co...
by miket29
Tue Apr 30, 2019 10:55 pm
Forum: Investing - Theory, News & General
Topic: understanding Swedroe on total mkt fund having "no net exposure"?
Replies: 35
Views: 2828

Re: understanding Swedroe on total mkt fund having "no net exposure"?

More recently Fama has revised his list of factors with the best evidence supporting them and not subsumed by other factors. He has never claimed that these factors produce excess risk adjusted returns. When calculating risk adjusted returns Fama considers non-volatility risks. His risk adjusted re...
by miket29
Tue Apr 30, 2019 3:22 pm
Forum: Investing - Theory, News & General
Topic: understanding Swedroe on total mkt fund having "no net exposure"?
Replies: 35
Views: 2828

Re: understanding Swedroe on total mkt fund having "no net exposure"?

More recently Fama has revised his list of factors with the best evidence supporting them and not subsumed by other factors. He has never claimed that these factors produce excess risk adjusted returns. I'm still working to understand the role factors and tilting should play in building a portfolio...
by miket29
Fri Apr 26, 2019 5:35 pm
Forum: Investing - Theory, News & General
Topic: understanding Swedroe on total mkt fund having "no net exposure"?
Replies: 35
Views: 2828

understanding Swedroe on total mkt fund having "no net exposure"?

I am confused by Larry's discussion of no net exposure in a total market fund. For example he writes ’s true that total market portfolios own small and value stocks, providing positive exposure to the premiums. However, they have no net exposure to the size and value premiums because their holdings ...
by miket29
Mon Apr 22, 2019 3:42 pm
Forum: Personal Investments
Topic: CA Muni: ETF vs MF; Exp.Ratio doesnt help
Replies: 1
Views: 186

Re: CA Muni: ETF vs MF; Exp.Ratio doesnt help

FCTFX has 51% bonds rated AA, 34% rated A

iShares CMF has 75% rated AA, 9% rated A

When you hold riskier assets you have to be paid to take the risk so this could be part of the explanation
by miket29
Mon Apr 22, 2019 12:05 pm
Forum: Personal Investments
Topic: Getting through a 2008-like crash during retirement
Replies: 38
Views: 5030

Re: Getting through a 2008-like crash during retirement

My retirement plan involves splitting my savings between bond funds (such as VWIUX) and index funds (such as VFIAX). Bonds will give me 5% to 6% annual interest, which I can use to pay for part of my living expenses. I can sell up to 4% of index funds annually "to create my own dividend". But my wo...
by miket29
Sat Apr 20, 2019 3:43 pm
Forum: Personal Investments
Topic: Where to park the next dollar, beyond 401k?
Replies: 12
Views: 1564

Re: Where to park the next dollar, beyond 401k?

I have long term goal - retire with a decent chunk at 65 or, be financially independent around 55 I have mid term goal - buy a house, I live in HCOL area, so either in MASS(metro west/boston/ NY (if my job moves back to NY)), looking to spend almost 550-570kish house. Possibly kids. We have set asi...
by miket29
Thu Apr 18, 2019 3:06 pm
Forum: Personal Investments
Topic: 100% total market index for 10 years, wondering if I should have bonds and international
Replies: 16
Views: 2064

Re: 100% total market index for 10 years, wondering if I should have bonds and international

The long-term return on your portfolio is driven by asset allocation. Currently you do not have any international holdings. Jack Bogle wasn't a fan of int'l stocks but most investment advisors recommend holding a portion. The US has been a roll your entire investing life but it isn't always that way...
by miket29
Wed Apr 17, 2019 3:30 pm
Forum: Personal Investments
Topic: How often do you check up on your investments?
Replies: 35
Views: 2216

Re: How often do you check up on your investments?

I set up a desired allocation in an Excel spreadsheet, the next column has actual holdings, the third column has desired holdings. It isn't quite an IPS but its how I do it. I set a calendar item every Jan 2nd to update my holdings by creating a new tab in the spreadsheet, enter current numbers, and...
by miket29
Tue Apr 16, 2019 9:08 pm
Forum: Personal Investments
Topic: Where to hold 2-3 years of living expenses
Replies: 28
Views: 5603

Re: Where to hold 2-3 years of living expenses

However, I'm reading it differently than you are. When I put in 5 years, I see the -3.279 and 90% - is that what you are seeing that you are interpreting as the average annual loss of 3.3%? When I read the verbage above that, it says "Percentage Beating Annual Return over Period(s)" so that tells m...
by miket29
Tue Apr 16, 2019 4:48 pm
Forum: Personal Investments
Topic: Where to hold 2-3 years of living expenses
Replies: 28
Views: 5603

Re: Where to hold 2-3 years of living expenses

I've been retired since late 2014. I calculate the amount I will need to withdraw from my retirement savings and have 4 years (less estimated dividends) outside of my Vanguard equity / bond funds. The purpose of this money is to be able to not sell my funds when the market is way down. Because I ha...
by miket29
Mon Apr 15, 2019 3:05 pm
Forum: Personal Investments
Topic: Shifting away from 100% stocks - how do you execute shift without timing?
Replies: 17
Views: 1205

Re: Shifting away from 100% stocks - how do you execute shift without timing?

1. I have ~$250k in these investments. I contribute ~$3,000 in before tax funds per month. And then a variable after tax amount depending on life.. Highest would be $2,000 /month with lowest (planned) amount being $1,000. So let's say ~$4k of contributions a month. If the 401K annual limit is 19K, ...
by miket29
Sun Apr 14, 2019 6:41 pm
Forum: Personal Investments
Topic: How much to contribute in Employee Stock Purchase Plan?
Replies: 6
Views: 692

Re: How much to contribute in Employee Stock Purchase Plan?

I am trying to figure out how much percentage(from 1-15%) of my base salary, bonus, incentive comp to contribute for my ESPP. The details...6 month average look back from Oct 31,2018 to April 30,2019. Then they discount 15% off of the average stock price. I am locked in to the price for 24 months a...
by miket29
Sat Apr 13, 2019 9:04 pm
Forum: Personal Investments
Topic: Mid 40s Investing Advice
Replies: 4
Views: 1190

Re: Mid 40s Investing Advice

You are taking on an astounding amount of risk by holding 1/3 of your wealth in a couple of stocks instead of a diversified portfolio (US large, mid small, international, etc). Sometimes it works, and sometimes you can lose a lot. And on the flip side you have 250K in essentially bond-like instrumen...
by miket29
Fri Apr 12, 2019 9:27 pm
Forum: Personal Investments
Topic: how did Vanguard IT Treasury Index return 4.64% over 1 year?
Replies: 3
Views: 1315

how did Vanguard IT Treasury Index return 4.64% over 1 year?

I'm increasing my bond holdings as I near retirement and recently read some of Swedroe's books. He talks about favoring short term Treasuries and considering a longer term if each additional year of maturity gives 20 basis points. So I'm looking at the current Vanguard data for Vanguard ST Treasury ...
by miket29
Fri Apr 12, 2019 3:00 pm
Forum: Personal Investments
Topic: What % bonds for early retirement
Replies: 41
Views: 3766

Re: What % bonds for early retirement

The historical US stock return is something like 11% so I figured 7% was a safe figure. I guess I'm just looking for a rule of thumb for bond percentage allocation. The first sentence seems to imply that your equity holdings are in the S&P500. I hope you are diversified across asset classes (small ...
by miket29
Fri Apr 12, 2019 2:48 pm
Forum: Personal Investments
Topic: ORP says I should stop all pre-tax contribs
Replies: 75
Views: 6026

Re: ORP says I should stop all pre-tax contribs

I am struggling with the fact the numerous runs of I-ORP tell me to make contribs ONLY to Roth and taxable accounts. 24% current marginal bracket. (My company basic contrib and match cannot be Roth, pre-tax only. My portion can be either.) A little off topic, but if your 401K allows after-tax contr...
by miket29
Fri Apr 12, 2019 2:41 pm
Forum: Personal Investments
Topic: Is it worth it to donate appreciated shares when retirement is far off?
Replies: 25
Views: 1649

Re: Is it worth it to donate appreciated shares when retirement is far off?

If I pass shares on to my heirs, the cost basis is stepped up so they avoid capital gains. So, is it worth it to start donating my oldest shares (with the lowest cost basis), since these are also the shares that are most likely to be passed on (and thus face no taxes)? As you say, all the shares yo...
by miket29
Wed Apr 10, 2019 12:21 am
Forum: Personal Investments
Topic: Reasonable plan for tilting?
Replies: 17
Views: 1630

Re: Reasonable plan for tilting?

10 percent Vanguard Small-Cap Index I also wanted a small-cap tilt and decided not to use this fund (VSMAX) It follows its index (CRSP US Small Cap Index) with a Median market cap of $4.2 billion which doesn't seem that small to me. I prefer the S&P SmallCap 600 Index that has a Median market cap o...
by miket29
Wed Apr 10, 2019 12:08 am
Forum: Personal Investments
Topic: Vanguard Personal Advisor Services
Replies: 38
Views: 4734

Re: Vanguard Personal Advisor Services

dcb wrote:
Tue Apr 09, 2019 7:21 pm
What has been your experience in asking for a free annual plan and then being pressured to hire them for PAS services?
dcb
I wouldn't even call it pressure. The planner mentioned it was available once or twice, I said I'd consider it as I got closer to retirement, that was it.
by miket29
Tue Mar 26, 2019 9:24 pm
Forum: Personal Investments
Topic: The IRA Lightbulb just went on
Replies: 28
Views: 3919

Re: The IRA Lightbulb just went on

I know slowing down growth in our investments seems counter-intuitive, that's why I am posting here. If it is painful to pay taxes and you'd rather earn less then you can always switch to a TIPS fund or bonds since they are paying almost nothing in interest and you'd preserve the value of your hold...
by miket29
Mon Mar 25, 2019 5:42 pm
Forum: Personal Investments
Topic: investment grade corporate bond funds fall in downturn?
Replies: 17
Views: 1629

Re: investment grade corporate bond funds fall in downturn?

Having said all that... and the expectation that your bond money is safe money, what is the difference if your bond fund falls 2% or 6% and recovers in a year or so when your equities have dropped 45% and may take a decade to recover? How much difference to you does it make if your bond fund yields...
by miket29
Mon Mar 25, 2019 12:09 am
Forum: Personal Investments
Topic: investment grade corporate bond funds fall in downturn?
Replies: 17
Views: 1629

Re: investment grade corporate bond funds fall in downturn?

Having said all that... and the expectation that your bond money is safe money, what is the difference if your bond fund falls 2% or 6% and recovers in a year or so when your equities have dropped 45% and may take a decade to recover? How much difference to you does it make if your bond fund yields...
by miket29
Mon Mar 25, 2019 12:00 am
Forum: Personal Investments
Topic: investment grade corporate bond funds fall in downturn?
Replies: 17
Views: 1629

Re: investment grade corporate bond funds fall in downturn?

TaxingAccount wrote:
Sun Mar 24, 2019 8:47 am
it didn't lose 15% in 2008 it lost 6% where are you getting your numbers?
From https://www.google.com/search?q=MUTF:+VFICX and clicking the "max" tab. On Feb 1 20018 the VFICX price was 9.96 and on Nov 24 2008 it was 8.28 8.28/9.96 = .83 or a drop of 17%
by miket29
Sat Mar 23, 2019 3:13 pm
Forum: Personal Investments
Topic: investment grade corporate bond funds fall in downturn?
Replies: 17
Views: 1629

investment grade corporate bond funds fall in downturn?

As I near retirement I'm adjusting my AA to hold more bonds. I've read Ferri's book on asset allocation and he does mention that the credit risk is higher for investment grade corporate bonds that Treasuries. I understand how bond duration affects interest rate risk but what I'm unclear on is how to...
by miket29
Fri Mar 22, 2019 12:44 am
Forum: Personal Investments
Topic: Big Picture - are we doing the right things?
Replies: 38
Views: 4704

Re: Big Picture - are we doing the right things?

-Life: Me: $1mm 20 year term $410 annual premium, $1mm 30 year term $757 annual premium; Wife: $1mm 20 year term $594 annual premium I would think about the 30 year policy. The 20 year policy already seems sufficient to see your child thru college and provide for your wife. You are spending $24K fo...
by miket29
Wed Mar 20, 2019 11:45 am
Forum: Personal Investments
Topic: Time Weighted Rate of Return Question
Replies: 19
Views: 656

Re: Time Weighted Rate of Return Question

Thanks! I did my best to compare these two... I am not sure of the exact formula to use for the "cumulative return" so I simply added them up. My Merrill Lynch results are net of fees so I also tried to subtract 0.3% from the Vanguard results since I'd need to pay that as well. Did I do this correc...
by miket29
Tue Mar 19, 2019 10:31 pm
Forum: Personal Investments
Topic: tax-loss harvesting question
Replies: 9
Views: 530

Re: tax-loss harvesting question

a side note, but make sure you have automatic reinvestment turned off and do not have any purchases within 30 days of your sale. This is to avoid a wash sale if you are selling shares at a loss. It also applies to any ownership of the fund; in other words if you buy shares in your IRA but sell them ...
by miket29
Tue Mar 19, 2019 7:39 pm
Forum: Personal Investments
Topic: How to get over a $25K stock market loss?
Replies: 125
Views: 10391

Re: How to get over a $25K stock market loss?

You were not wrong to invest the money you were saving for a downpayment in stocks. The idea that you should invest your near-term needs in safe assets comes from the fallacy of time diversification. Risk doesn't go away over long horizons. It adds up. More precisely: suppose $X in a risky investme...
by miket29
Tue Mar 19, 2019 7:23 pm
Forum: Personal Investments
Topic: How to get over a $25K stock market loss?
Replies: 125
Views: 10391

Re: How to get over a $25K stock market loss?

The experience has scarred me enough to swear off of equities, but I know that will be a wealth killer in the long run (we are still 25-30 years away from retirement). Any tips on how I can get over this feeling and go back to being a responsible/prudent investor? Yes. Don't try to time or outguess...
by miket29
Fri Mar 15, 2019 6:12 pm
Forum: Personal Investments
Topic: Risk averse portfolio for an early retiree?
Replies: 45
Views: 4442

Re: Risk averse portfolio for an early retiree?

Agree with krebs. A 40% stock portfolio is pretty agressive for someone who is risk averse. Lets play with some numbers. Put 40% into US stock ($1400K) and put $2100K into bonds. Start taking the $90K/year you need and play it forward 5 years. But oops, it is February 2004 and the market will declin...
by miket29
Wed Mar 13, 2019 12:33 am
Forum: Personal Investments
Topic: Risk averse portfolio for an early retiree?
Replies: 45
Views: 4442

Re: Risk averse portfolio for an early retiree?

Tax-deferred: 2M After-Tax: 1.5M Own a house, No Debt, No Mortgage SS combined: ~60K at 67 (using 45K in my planning) Base expenses 60K Medical: 30K until age 65, 10K after 65 So, 90K expenses until 65, 70K after that Sorry to hear about your job loss. Your expenses may be 70K after 65, but once yo...
by miket29
Tue Mar 12, 2019 11:08 pm
Forum: Personal Investments
Topic: Long Time Lurker - Portfolio Analysis
Replies: 10
Views: 1183

Re: Long Time Lurker - Portfolio Analysis

If you want to retire in a little over 10 years you are taking a lot of risk with that much in the market. Read https://awealthofcommonsense.com/2014/04/whats-worst-10-year-return-5050-stockbond-portfolio/ to see about 10 year rolling returns (you can probably find more updated numbers, but the gist...
by miket29
Tue Mar 12, 2019 11:02 pm
Forum: Personal Investments
Topic: Late-start Fidelity 401(k)
Replies: 17
Views: 1267

Re: Late-start Fidelity 401(k)

If this works for you you're golden! My only regret is this wasn't around when I was 15 years younger and farther from retirement.

Look up mega backdoor Roth on this site and others to get an overview of how it would work and prepare some questions to ask the advisor.
by miket29
Tue Mar 12, 2019 9:18 pm
Forum: Personal Investments
Topic: Late-start Fidelity 401(k)
Replies: 17
Views: 1267

Re: Late-start Fidelity 401(k)

We are currently adding an additional $40K per year to the Savings/Investment component of the Schwab taxable account (wholly separate from college savings) at a 40/60 ratio of Savings (Bonds etc.) to Investments (ETFs). We see that account slightly differently than the two 401(k)s as it's not excl...
by miket29
Mon Mar 11, 2019 7:30 pm
Forum: Personal Investments
Topic: Investment noob needs help creating an IPS to ensure he doesn't outlive his money.
Replies: 23
Views: 1412

Re: Investment noob needs help creating an IPS to ensure he doesn't outlive his money.

Today I had my second telephone consultation with a Vanguard representative regarding their Personal Asset Services (PAS). While I'm confident that his honest recommendation would be for me to have a larger percentage of my portfolio invested in equities, in trying to find a balance between my risk...
by miket29
Mon Mar 11, 2019 1:54 pm
Forum: Personal Investments
Topic: Why not 50 Stocks- 50 Bonds, wait for crash then go 90-10?
Replies: 54
Views: 4224

Re: Why not 50 Stocks- 50 Bonds, wait for crash then go 90-10?

Some thoughts? Great strategy if you know what the peak is. Problem is now one knows what the peak is or will be. So hanging onto all that "dry powder" will likely miss out on a lot of big gains. For example, what if you implemented this strategy 5 years ago thinking the market was at a peak? You'd...
by miket29
Mon Mar 11, 2019 12:44 pm
Forum: Personal Investments
Topic: Need Help With Mothers Portfolio
Replies: 15
Views: 1284

Re: Need Help With Mothers Portfolio

One thing I should add is that realizing long-term capital gains can cause Social Security benefits to become taxable. Although with an annual $14K in benefits the tax is likely to be small. It's worth using a tool like Taxcaster to investigate alternatives. See the following and other info you can ...
by miket29
Sun Mar 10, 2019 11:44 pm
Forum: Personal Investments
Topic: Need Help With Mothers Portfolio
Replies: 15
Views: 1284

Re: Need Help With Mothers Portfolio

holding individual stocks is risky. I would unwind these holdings and put her into a low-risk asset allocation such as 70-80% bonds. You can reallocate her IRA account tomorrow with no tax implications. What about the taxable account? According to https://www.irs.gov/pub/irs-tege/uniform_rmd_wksht.p...
by miket29
Sun Mar 10, 2019 11:25 pm
Forum: Personal Investments
Topic: 3-5 year horizon taxable account strategy
Replies: 2
Views: 564

Re: 3-5 year horizon taxable account strategy

We want to keep our cash semi liquid so that in 3-5 years we will be able to buy a bigger place on a hobby farm type of property, hopefully by paying cash for it using our current home's equity plus the cash we accumulate. I put our current cash of 30k in the high yield tax exempt vanguard bond fun...
by miket29
Sat Mar 09, 2019 10:16 pm
Forum: Personal Investments
Topic: How irresponsible is this?
Replies: 20
Views: 4304

Re: How irresponsible is this?

There are many good books you can read. There are a few under the Bogleheads label. One I'd recommend is "Four Pillars of Investing" since it is written by a doctor. The basic problem I see is you're trying to time the market. Small is good, then international is good now and US is bad. There are th...