Search found 197 matches

by MrBeaver
Wed Sep 19, 2018 8:38 am
Forum: Personal Finance (Not Investing)
Topic: Are dues for musical 5013(c) deductible (charitable)?
Replies: 1
Views: 166

Are dues for musical 5013(c) deductible (charitable)?

I'm familiar with Pub. 526 which states: Membership fees or dues. You may be able to deduct membership fees or dues you pay to a qualified organization. However, you can deduct only the amount that is more than the value of the benefits you receive. You can't deduct dues, fees, or assessments paid t...
by MrBeaver
Tue Sep 18, 2018 10:00 pm
Forum: Investing - Theory, News & General
Topic: Stock market scenarios
Replies: 12
Views: 838

Re: Stock market scenarios

For 2. and 3., if for a moment we assume we could know the future, I'm wondering how you would invest your money. (If the amount matters, let's say $100K.) In fairness to the OP, I think the gist of this is whether investment strategies other than TSM / indexing would theoretically be better in pro...
by MrBeaver
Tue Sep 18, 2018 9:39 pm
Forum: Personal Finance (Not Investing)
Topic: how do/did you teach your kids finances/investing?
Replies: 26
Views: 1880

Re: how do/did you teach your kids finances/investing?

Great ideas here. Mine aren’t old enough to have gone through this, but I remember a formative experience during my growing up was my mother taking me to a bank to get a CD with my unspent allowance and birthday money when I was in elementary school. At the time (80s), rates were high enough (7-9%) ...
by MrBeaver
Tue Sep 18, 2018 9:25 pm
Forum: Personal Finance (Not Investing)
Topic: Life Insurance...Social Security also pays?
Replies: 25
Views: 1376

Re: Life Insurance...Social Security also pays?

In picking your life insurance amount, consider it is not adjusted with inflation. Like most insurance you hope to never need it, but you want it there just in case. ^^^ This. I originally thought I wanted a decreasing term policy, since I knew I’d be saving throughout the term. However, when I mod...
by MrBeaver
Mon Sep 17, 2018 9:43 am
Forum: Personal Consumer Issues
Topic: $180 IPhone SE or $90 Iphone 5S
Replies: 33
Views: 2098

Re: $180 IPhone SE or $90 Iphone 5S

Ditto on recommending the SE. While the 5s will support iOS 12, the SE will be much faster, and I’d wager that the 5s, and 6 will drop off the supported devices list for iOS 13 next year. https://support.apple.com/en-us/HT209051 But selfishly, I just wish they would update the SE so I could get a fa...
by MrBeaver
Sun Sep 16, 2018 9:03 am
Forum: Personal Finance (Not Investing)
Topic: Considering an HSA with a baby on the way - good idea or bad?
Replies: 9
Views: 730

Re: Considering an HSA with a baby on the way - good idea or bad?

It’s not stated, but make sure you look at the OOP maximum, as well as consider your tax rate. Why? Many PPO plans have lower deductibles and some copays, but higher OOP maximums. For us, with twins plus a post-delivery gall bladder issue (total of >50k insurance price adjusted charges), we were way...
by MrBeaver
Sat Sep 15, 2018 8:16 am
Forum: Investing - Help with Personal Investments
Topic: DAF > Roth IRA? 12% tax bracket, no taxable
Replies: 46
Views: 3530

Re: DAF > Roth IRA? 12% tax bracket, no taxable

Yet another idea I've had is "using a DAF" to pay for college expenses: 1) DAF assets will not show up on a FAFSA, potentially allowing you to qualify for some kind of aid. 2) Additionally, tax clumping during FAFSA years may also increase eligibility for aid. 3) A person committed to charitable gi...
by MrBeaver
Sat Sep 15, 2018 1:22 am
Forum: Investing - Help with Personal Investments
Topic: DAF > Roth IRA? 12% tax bracket, no taxable
Replies: 46
Views: 3530

Re: DAF > Roth IRA? 12% tax bracket, no taxable

I think of this DAF strategy as something like an HSA or a 529, a special investment dedicated to a stream of future expenses, with special tax perks. I'm trying to evaluate where in the "order of investment" it fits, and if it makes sense to put money (a large chunk is required up front) to get it...
by MrBeaver
Fri Sep 14, 2018 10:18 am
Forum: Personal Consumer Issues
Topic: Can only take (1) DSLR lens..which one?
Replies: 27
Views: 662

Re: Can only take (1) DSLR lens..which one?

What kind of photos are you more concerned about capturing? Which zoom lens is this? I'm unfamiliar with a 24-75mm zoom for Canon EF mount. I'll make the recommendations below assuming it's a Canon 24-70 2.8L (I or II). Indoor? 50mm 1.2 Fast action? 24-70 2.8 Outdoor? Either. It's easier to zoom wit...
by MrBeaver
Thu Sep 13, 2018 6:26 pm
Forum: Investing - Help with Personal Investments
Topic: DAF > Roth IRA? 12% tax bracket, no taxable
Replies: 46
Views: 3530

Re: DAF > Roth IRA? 12% tax bracket, no taxable

For 2020 I will then have $90k additional subject to taxation prior to itemization. By bunching 2 years of Property Taxes, documentable extra physical donations, and a sales tax deduction based upon higher gross income, only about $6500 will be left that is taxable of the $90k. Time will bring more...
by MrBeaver
Thu Sep 13, 2018 5:40 pm
Forum: Investing - Help with Personal Investments
Topic: DAF > Roth IRA? 12% tax bracket, no taxable
Replies: 46
Views: 3530

Re: DAF > Roth IRA? 12% tax bracket, no taxable

I think that the benefit of increasing deductions over time is better than any suboptimization in the tax status of where the compounding occurs - Roth vs 401k vs even taxable, since there is a decent chance of free LTCG (with current law). This is the crux of the strategy to me. Cost = increased f...
by MrBeaver
Tue Sep 11, 2018 12:12 pm
Forum: Investing - Help with Personal Investments
Topic: Is there a point where you should stop or hold off rebalancing?
Replies: 15
Views: 1059

Re: Is there a point where you should stop or hold off rebalancing?

Is there a point where it might be best to just let it ride and put new $s into each asset class evenly each month? ... Or should I just do rebalance once a year when selling off an asset class to balance and just put monthly contributions to which ever is lowest at that given time. I don't claim t...
by MrBeaver
Mon Sep 10, 2018 6:32 pm
Forum: Investing - Help with Personal Investments
Topic: DAF > Roth IRA? 12% tax bracket, no taxable
Replies: 46
Views: 3530

Re: DAF > Roth IRA? 12% tax bracket, no taxable

So in both the benchmark and the DAF strategy, all money is invested. The only difference seems to be that with the DAF strategy, it accumulates money with this formula: (Annual average tax savings - $100 DAF fee) * 6% annual compounding inside of best available investment account. Ah, ok. I think ...
by MrBeaver
Mon Sep 10, 2018 4:22 pm
Forum: Personal Finance (Not Investing)
Topic: Anyone else not save for cars?
Replies: 113
Views: 9816

Re: Anyone else not save for cars?

NextMil wrote:
Mon Sep 10, 2018 3:33 pm
I hate payments, and my savings for it doubles as my car maintainence account. I never worry about repairs or buying new to me vehicles.
Exactly what I do. Though I'll take a below safe investment return loan if I'm offered it.
by MrBeaver
Mon Sep 10, 2018 4:13 pm
Forum: Investing - Help with Personal Investments
Topic: DAF > Roth IRA? 12% tax bracket, no taxable
Replies: 46
Views: 3530

Re: DAF > Roth IRA? 12% tax bracket, no taxable

Received $1,440 * in prior year tax savings, put in Best Investment Vehicle Available, “BIVA” (ie, Roth IRA, 529, 403b) *(edit: actually $2190, a $720 difference. I'll compound $720 by 6% and add to the comparison at the end) I'm not sure I follow your logic completely, but let's continue this anal...
by MrBeaver
Mon Sep 10, 2018 3:47 pm
Forum: Investing - Help with Personal Investments
Topic: DAF > Roth IRA? 12% tax bracket, no taxable
Replies: 46
Views: 3530

Re: DAF > Roth IRA? 12% tax bracket, no taxable

There isn't a break even point because you are simply moving money between accounts in year 1. It pays off immediately, again, only if the giver is determined to maintain the same cash flow to charity. I think. The gain is in the form of reduced taxes (from the deduction). The cost is in the form o...
by MrBeaver
Mon Sep 10, 2018 1:48 pm
Forum: Personal Finance (Not Investing)
Topic: Anyone else not save for cars?
Replies: 113
Views: 9816

Re: Anyone else not save for cars?

Sure, money is fungible. But I have an easier time controlling spending if I have a budget where I plan how much I can spend on different items now and in the future. We save for car needs, but the actual money goes in the rest of my 'medium-term-savings' account. I just maintain a record of how muc...
by MrBeaver
Mon Sep 10, 2018 1:35 pm
Forum: Investing - Help with Personal Investments
Topic: DAF > Roth IRA? 12% tax bracket, no taxable
Replies: 46
Views: 3530

Re: DAF > Roth IRA? 12% tax bracket, no taxable

I think most of the difference you're showing from the alternative plan is from every other year tax benefit starting at $1,440 from lumping, so about $9k plus some compound growth. I don't think you're giving the Roth scenario this benefit and that accounts for the majority of the difference. Prec...
by MrBeaver
Sat Sep 08, 2018 7:04 am
Forum: Personal Consumer Issues
Topic: Building a web site-how to, costs?
Replies: 13
Views: 740

Re: Building a web site-how to, costs?

Do yourself a favor and just go with Squarespace: https://www.squarespace.com Your time will be better spent writing content and building your business than by learning technologies that change every 5 years. Building a custom site yourself with Wordpress is possible, but then you are spending 100-1...
by MrBeaver
Fri Sep 07, 2018 10:58 pm
Forum: Investing - Help with Personal Investments
Topic: DAF > Roth IRA? 12% tax bracket, no taxable
Replies: 46
Views: 3530

Re: DAF > Roth IRA? 12% tax bracket, no taxable

Edit, Summary: I believe I have discovered a strategy where a pairing of a DAF and a new, feeder taxable account is superior to contributing to a Roth IRA, even in the 12% federal tax bracket, given certain special criteria. This conclusion doesn't quite sit well with me intuitively. I think it's c...
by MrBeaver
Fri Sep 07, 2018 10:43 am
Forum: Investing - Help with Personal Investments
Topic: DAF > Roth IRA? 12% tax bracket, no taxable
Replies: 46
Views: 3530

Re: DAF > Roth IRA? 12% tax bracket, no taxable

OP, Another thought: If there is a concern that pulling from the Roth to start this strategy is reducing tax-free money in retirement, then one could essentially use the initial 12k added deduction over the standard deduction to do a traditional -> Roth conversion without raising taxable income whic...
by MrBeaver
Thu Sep 06, 2018 10:16 pm
Forum: Investing - Help with Personal Investments
Topic: Psychology of saving for college vs retirement
Replies: 66
Views: 3906

Re: Psychology of saving for college vs retirement

1) Continue filling up your tax sheltered retirement savings bucket to the max each year. [Pay for college with loans if necessary] 2) Partially fill your retirement saving bucket each year, but to an extent that you think will meet your retirement needs given your current and future retirement sav...
by MrBeaver
Thu Sep 06, 2018 10:02 pm
Forum: Investing - Help with Personal Investments
Topic: DAF > Roth IRA? 12% tax bracket, no taxable
Replies: 46
Views: 3530

Re: DAF strategy? 12% tax bracket, no taxable

Interesting thought experiment. I would amend the plan so that instead of donating directly to the DAF each month, you still save in the taxable account. This way, at the end of the year if the value has gone down, you can tax loss harvest before donating the cash at the end of the year, but if it g...
by MrBeaver
Tue Sep 04, 2018 12:25 pm
Forum: Personal Finance (Not Investing)
Topic: House Affordability - Question on standard advice
Replies: 35
Views: 3127

Re: House Affordability - Question on standard advice

What about this? To buy a house as a wise financial decision, it must pass three criteria ... Home value < 150% * (total portfolio - total debt [aka net worth without home equity]). This ensures one’s portfolio is sufficient size that the house and debt are not reducing future expected returns need...
by MrBeaver
Tue Sep 04, 2018 8:02 am
Forum: Personal Finance (Not Investing)
Topic: House Affordability - Question on standard advice
Replies: 35
Views: 3127

Re: House Affordability - Question on standard advice

What about this? To buy a house as a wise financial decision, it must pass three criteria: Cheaper than renting (NYT calculator, for instance) 12 * PITI + 1-2% of Home value < (gross income - retirement savings) * 45%. This guards against total housing outlays putting too much strain on the rest of ...
by MrBeaver
Mon Sep 03, 2018 12:43 am
Forum: Personal Finance (Not Investing)
Topic: How to account for HSA in retirement planning?
Replies: 41
Views: 3131

Re: How to account for HSA in retirement planning?

What is the best way to account for an HSA account in retirement planning? Add it to the total retirement balance, leave it out completely and assume it may be used before retirement, have a separate $ goal for the account to spend on health care in retirement? I prefer to include it, but then also...
by MrBeaver
Mon Sep 03, 2018 12:32 am
Forum: Personal Finance (Not Investing)
Topic: How to account for HSA in retirement planning?
Replies: 41
Views: 3131

Re: How to account for HSA in retirement planning?

This may be the one exception to 3. above. If you find yourself with a limited life expectancy, you might want to take non-qualified HSA distributions depending on the size of your HSA and your relative taxation vs. the lump sum taxation to your non-spouse beneficiaries. I realized I should probabl...
by MrBeaver
Sat Sep 01, 2018 9:00 am
Forum: Personal Consumer Issues
Topic: Do-It-Yourself Wiring the Home With Ethernet: What to Buy
Replies: 54
Views: 3214

Re: Do-It-Yourself Wiring the Home With Ethernet: What to Buy

[*]Plenum - I’m pretty sure the only difference is the thermal rating of the jacketing. The way it was explained to me by a Belden representative, plenum wiring is made of materials that do not give off toxic fumes if burned. I guess my perspective is if there is fire in your walls, your house is b...
by MrBeaver
Sat Sep 01, 2018 8:46 am
Forum: Personal Consumer Issues
Topic: Do-It-Yourself Wiring the Home With Ethernet: What to Buy
Replies: 54
Views: 3214

Re: Do-It-Yourself Wiring the Home With Ethernet: What to Buy

I did this in a one-story that I completely renovated. Half the drops were easy since I had some walls open for other reasons. Things I haven’t seen mentioned: Plenum - I’m pretty sure the only difference is the thermal rating of the jacketing. It is meant for commercial installs where cable is run ...
by MrBeaver
Fri Aug 31, 2018 1:31 pm
Forum: Personal Finance (Not Investing)
Topic: Term life insurance: now or workout first
Replies: 23
Views: 2311

Re: Term life insurance: now or workout first

Based on my reading, the best way is to stagger coverage? A 20-year policy for 1 million and a 10-year one for another mil for while kids are small and wife can't work full-time as a result and needs more support. Did I get that right? This really depends. There is some underwriting overhead for a ...
by MrBeaver
Fri Aug 31, 2018 12:06 pm
Forum: Investing - Theory, News & General
Topic: MSCI including China A shares - VEMAX vs FPMAX and other implications?
Replies: 0
Views: 166

MSCI including China A shares - VEMAX vs FPMAX and other implications?

How will this affect differences between FPMAX and VEMAX, or other similar international funds which were tracking different indices before (MSCI vs FTSE)? https://finance.yahoo.com/news/apos-why-own-more-china-110300919.html I just recently learned of the differences between FPMAX and VEMAX. I had ...
by MrBeaver
Wed Aug 29, 2018 5:57 pm
Forum: Personal Consumer Issues
Topic: How do you save money on groceries?
Replies: 155
Views: 9617

Re: How do you save money on groceries?

Concerning the "Food prices are just higher" sentiment I'm seeing, this is actually not the case when you look at the CPI detailed data. Nominal prices for the entire 'food at home' category tracked within CPI have actually been trending DOWN (deflationary) since 2015, while the entire CPI-U has dri...
by MrBeaver
Wed Aug 29, 2018 12:53 pm
Forum: Investing - Theory, News & General
Topic: Any reason to split a total market fund into high dividend stocks in tax advantaged and low dividend in taxable?
Replies: 7
Views: 441

Re: Any reason to split a total market fund into high dividend stocks in tax advantaged and low dividend in taxable?

Splitting can be hard, depending on how completely you want to eliminate dividends in taxable. When I asked about this before, the general response was to split Growth/Value or Large/Small. This helps some, but certainly not completely: https://www.bogleheads.org/forum/viewtopic.php?t=249844 One use...
by MrBeaver
Wed Aug 29, 2018 12:20 pm
Forum: Personal Consumer Issues
Topic: How do you save money on groceries?
Replies: 155
Views: 9617

Re: How do you save money on groceries?

Finally, calculate the cost per meal. Figure out a figure that you like and work towards that. Cooking from scratch is not the same across the board...some meals are definitely more expensive than others. So, if your cost per portion is too high for one, make a cheaper meal for the next day. ^^^ Th...
by MrBeaver
Wed Aug 29, 2018 11:30 am
Forum: Investing - Theory, News & General
Topic: Diminishing Proportion of Returns with Stocks
Replies: 23
Views: 1409

Re: Diminishing Proportion of Returns with Stocks

This doesn't make sense mathematically if one assumes that the returns are constant (the bond and stock returns exactly equal the projection for every year). Therefore, I would presume that the bonus one gets from rebalancing when the returns are not constant is not linear with the allocation percen...
by MrBeaver
Wed Aug 29, 2018 11:12 am
Forum: Personal Consumer Issues
Topic: How do you save money on groceries?
Replies: 155
Views: 9617

Re: How do you save money on groceries?

The only thing I might have done, I got a pantry (shelving I put in the basement) and a deep freezer and stocked both over time with stuff that I usually buy that's on sale/when it's on sale. But now I don't buy the things I've stocked up on. I wait until I runs out. When it runs out I buy it as ne...
by MrBeaver
Mon Aug 27, 2018 4:12 pm
Forum: Personal Consumer Issues
Topic: How often do you change your HVAC filters?
Replies: 57
Views: 3072

Re: How often do you change your HVAC filters?

When my Nest tells me to: https://nest.com/support/article/Will-Nest-let-me-know-when-I-need-to-change-my-air-filter Instead of using a timed schedule alarm, Nest keeps a running total of fan hours so that you know to replace it more often when you have been running the fan more often, and less ofte...
by MrBeaver
Sat Aug 25, 2018 2:51 pm
Forum: Investing - Theory, News & General
Topic: Annual Savings to Expenses Ratio: Meaningful Financial Statistic?
Replies: 22
Views: 1179

Re: Annual Savings to Expenses Ratio: Meaningful Financial Statistic?

I like the concept, but I also enjoy seeing the distance from a ‘goal’ (e.g. portfolio = 30x spend) I would amend it slightly, though it sacrifices simplicity: Ignore taxes (under this formula, if income in retirement is equal to spending before, then taxes will be similar. This assumption breaks do...
by MrBeaver
Thu Aug 23, 2018 10:21 am
Forum: Personal Finance (Not Investing)
Topic: Earn 1.5% on your checking account without the usual hoops (at Fidelity)
Replies: 64
Views: 7094

Re: Earn 1.5% on your checking account without the usual hoops (at Fidelity)

Note that there is an important difference between the Fidelity CMA and Vanguard Advantage (mentioned in one reply above) which may be more important to some depending on your location and travel frequency: Fidelity CMA: https://www.fidelity.com/mymoney/no-atm-fees-no-catches-no-gimmicks All Fidelit...
by MrBeaver
Wed Aug 22, 2018 5:53 pm
Forum: Investing - Theory, News & General
Topic: 529 Withdrawal of Basis
Replies: 13
Views: 739

Re: 529 Withdrawal of Basis

I wonder if I could use this money for deductible charitable contributions or something similar, without paying withdrawal taxes. I don't think you can do this, even within your will at death. Otherwise, it seems like I should maybe suck it up, pay the tax and the penalty, and get the money reinves...
by MrBeaver
Tue Aug 21, 2018 12:52 am
Forum: Personal Finance (Not Investing)
Topic: Repairs, and the economic joys of homeownership
Replies: 17
Views: 2111

Re: Repairs, and the economic joys of homeownership

The first incentive I see in this is not the economic savings of doing something yourself, which may or may not be cheaper if you factor a value in for your time. It's the fact that you get to decide what gets done to your home to fit your wants, and when, not your landlord. There is an unforeseen ...
by MrBeaver
Tue Aug 21, 2018 12:40 am
Forum: Investing - Theory, News & General
Topic: "75 Must Know Statistics About Long-Term Care: 2018 Edition"
Replies: 52
Views: 5422

Re: "75 Must Know Statistics About Long-Term Care: 2018 Edition"

This is the scary one to me: 14%: Percentage of people who will need long-term care for longer than five years. I wondered why LTC insurance policies were not available to cover the long tail more cheaply, with a 3-5 year self-pay deductible. Now I know. The long tail is also fairly fat. I guess I’l...
by MrBeaver
Mon Aug 20, 2018 10:29 pm
Forum: Investing - Theory, News & General
Topic: The problem with 'saving receipts' for future qualified HSA withdrawals
Replies: 24
Views: 2717

Re: The problem with 'saving receipts' for future qualified HSA withdrawals

Waiting to take reimbursements only produces a tax drag in your HSA if your HSA is larger than your total medical expenses. I completely agree. Sorry if I didn’t make that clear up front. This is not common, as you must stop contributing to your HSA when you start Medicare, but you will usually hav...
by MrBeaver
Sun Aug 19, 2018 3:08 pm
Forum: Investing - Theory, News & General
Topic: The problem with 'saving receipts' for future qualified HSA withdrawals
Replies: 24
Views: 2717

Re: The problem with 'saving receipts' for future qualified HSA withdrawals

In HSA accounts, we get an income tax deduction at the time of contribution. We get tax-free withdrawals when we withdrawal for a qualified medical expense in that year or a year prior. Because of this, a strategy is often suggested where we cash-flow medical expenses and leave HSA assets in the HS...
by MrBeaver
Sun Aug 19, 2018 2:49 pm
Forum: Investing - Theory, News & General
Topic: The problem with 'saving receipts' for future qualified HSA withdrawals
Replies: 24
Views: 2717

Re: The problem with 'saving receipts' for future qualified HSA withdrawals

Situation 1: say $1800 after drag, with $800 taxable gains Situation 2: $1000, reimbursed from HSA for old expense, $1000 in HSA that would now be taxable if not used for health expense. I think you're right that an example will help. Let's go with an example similar to yours, but add formal number...
by MrBeaver
Sun Aug 19, 2018 1:24 pm
Forum: Investing - Theory, News & General
Topic: Remind me (again) how real estate isn't a GREAT investment?
Replies: 158
Views: 13642

Re: Remind me (again) how real estate isn't a GREAT investment?

As others have said, great returns come from luck/timing + managing yourself (job). For the most part, I prefer REITs + stocks, though I might jump in on RE if we had another big downturn in RE like 2008-2009. I can see myself buying properties in whatever town(s) my two kids go to college, but put...
by MrBeaver
Sun Aug 19, 2018 10:42 am
Forum: Investing - Theory, News & General
Topic: The problem with 'saving receipts' for future qualified HSA withdrawals
Replies: 24
Views: 2717

Re: The problem with 'saving receipts' for future qualified HSA withdrawals

If you assume that you will have more than enough medical expenses to exhaust your HSA tax-free, the reduced "value" of current expenses in future years is irrelevant. Completely agree. This only enters the equation when your future expected HSA balance dwarfs your cumulative medical expenses. For ...
by MrBeaver
Sun Aug 19, 2018 10:33 am
Forum: Investing - Theory, News & General
Topic: The problem with 'saving receipts' for future qualified HSA withdrawals
Replies: 24
Views: 2717

Re: The problem with 'saving receipts' for future qualified HSA withdrawals

In my simple mind, you are over-complicating a very simple issue. It is complicated because you linked 2 separate items into your decision. Contribution to HSA and when to use HSA. Thanks for the perspective, that's exactly what I need. C) For a retiree, I would assume that the person would have en...
by MrBeaver
Sun Aug 19, 2018 10:07 am
Forum: Investing - Theory, News & General
Topic: The problem with 'saving receipts' for future qualified HSA withdrawals
Replies: 24
Views: 2717

The problem with 'saving receipts' for future qualified HSA withdrawals

In HSA accounts, we get an income tax deduction at the time of contribution. We get tax-free withdrawals when we withdrawal for a qualified medical expense in that year or a year prior. Because of this, a strategy is often suggested where we cash-flow medical expenses and leave HSA assets in the HSA...
by MrBeaver
Sat Aug 18, 2018 9:01 pm
Forum: Investing - Theory, News & General
Topic: How is equity/bond allocation different from overweighting sectors/asset classes?
Replies: 3
Views: 398

How is equity/bond allocation different from overweighting sectors/asset classes?

Isn’t deviating from market cap equity weights to tailor one’s portfolio to expected risk/return profile synonymous with tailoring one’s asset allocation between bonds and equity to meet their risk/return goals? I hear an awful lot of “buying anything other than total cap-weighted equities is unwise...