Search found 210 matches
- Sun Jan 17, 2021 7:28 am
- Forum: Personal Investments
- Topic: Optimal frequency for auto-investing in taxable account
- Replies: 41
- Views: 2889
Re: Optimal frequency for auto-investing in taxable account
So look at the chart that jsprag posted. That's a "box-and-whisker" plot, where the central values (medians or means) are horizontal lines, and the boxes contain some reasonable amount of the data. So the boxes are confidence intervals (maybe including 50% of the data - it's common to plo...
- Sat Jan 16, 2021 8:56 am
- Forum: Personal Investments
- Topic: Optimal frequency for auto-investing in taxable account
- Replies: 41
- Views: 2889
Re: Optimal frequency for auto-investing in taxable account
I'll second the answer of "invest it when you have it". With respect to Jeremy Siegel, I think that: (a) The Dow Jones Industrial Average is a terrible index to represent the market (b) Even if the observation was actionable in 2012 for timing purchases, there's no certainty that it remain...
- Tue Jan 05, 2021 4:57 pm
- Forum: Investing - Theory, News & General
- Topic: 7% return in the markets
- Replies: 120
- Views: 13635
Re: 7% return in the markets
Who uses 7% for which calculations??? We can make a lot of money off of those who naively make such assumptions. Every government pension does. Unfortunately, I don't think you can make money from them - in fact, they will take your money through tax if they don't make these returns. https://www.na...
- Sun Jan 03, 2021 1:37 pm
- Forum: Personal Investments
- Topic: Robo-advisors that just advise, not manage?
- Replies: 12
- Views: 1054
Re: Robo-advisors that just advise, not manage?
So what do you need a robo for? It would be to see what advice it gave me in terms of fund choices and balancing, given my risk preferences. I don't want it to make trades for me. Yes, I could do this myself, and if decided to do, say, a n fund (n < 5 or whatever) strategy, then I don't really need...
- Sun Jan 03, 2021 1:21 pm
- Forum: Personal Investments
- Topic: The year in which I turn 50, catchup contributions
- Replies: 32
- Views: 3332
Re: The year in which I turn 50, catchup contributions
You turn 50 on the day before your birthday, which matters for people born January 1, I think. Anyway, yes you can start the catch up in January of the year you turn 50. Wait, what?!! Are you saying that if your birthday is 1/1/1971, you could have started your catch-up last year? You must have had...
- Sat Jan 02, 2021 10:21 am
- Forum: Personal Investments
- Topic: The year in which I turn 50, catchup contributions
- Replies: 32
- Views: 3332
Re: The year in which I turn 50, catchup contributions
[...] The very specific question posed by an_asker is if someone who had their 50th birthday on Jan 1, 2021 can make catch-up contributions in tax year 2020. [...] My question was specifically to ThisTimeItsDifferent. Did you read what he/she had written? Yes, but then I got sloppy. You turn 50 on ...
- Sat Jan 02, 2021 8:24 am
- Forum: Investing - Theory, News & General
- Topic: 7% return in the markets
- Replies: 120
- Views: 13635
Re: 7% return in the markets
I always hear 7% being used as the de facto rate in calculations. Who uses 7% for which calculations??? We can make a lot of money off of those who naively make such assumptions. Every government pension does. Unfortunately, I don't think you can make money from them - in fact, they will take your ...
- Sat Jan 02, 2021 7:49 am
- Forum: Personal Investments
- Topic: The year in which I turn 50, catchup contributions
- Replies: 32
- Views: 3332
Re: The year in which I turn 50, catchup contributions
You must have had your 50th or higher birthday within the taxable year to be “catch-up eligible”. Reference: Treas. Reg. 1.414(v)-1(g)(3) The Vanguard App will include the Catch-up addition as a maximum contribution for IRA, if the op is 50 this year, then the option is available, the amount is $70...
- Sat Jan 02, 2021 7:00 am
- Forum: Personal Investments
- Topic: The year in which I turn 50, catchup contributions
- Replies: 32
- Views: 3332
Re: The year in which I turn 50, catchup contributions
You turn 50 on the day before your birthday, which matters for people born January 1, I think. Anyway, yes you can start the catch up in January of the year you turn 50. Wait, what?!! Are you saying that if your birthday is 1/1/1971, you could have started your catch-up last year? You must have had...
- Sun Nov 29, 2020 11:16 am
- Forum: Personal Finance (Not Investing)
- Topic: Online calculator for probability of reaching different ages?
- Replies: 5
- Views: 540
Re: Online calculator for probability of reaching different ages?
The Social Security Administration Acturial Life Table might answer your question.
- Tue Aug 11, 2020 4:57 pm
- Forum: Personal Investments
- Topic: REITs in total stock market index
- Replies: 8
- Views: 1433
Re: REITs in total stock market index
There is a trivial amount of REITs and it is now much easier to find out than it used to be, because in 2017 REITs became a GICS "headline sector," called simply "real estate." REITs are stocks, and the only "real estate" found in index funds are REITs. (REITs which re...
- Thu Jul 02, 2020 1:49 pm
- Forum: Personal Investments
- Topic: TSP share prices for Quicken
- Replies: 112
- Views: 25277
Re: TSP share prices for Quicken
- Thu Jul 02, 2020 11:31 am
- Forum: Personal Investments
- Topic: TSP share prices for Quicken
- Replies: 112
- Views: 25277
Re: TSP share prices for Quicken
I've been a long time user of the script, but I'm trying to update it to Python 3 now that Python 2 is deprecated. Running into an issue, so I figured I'd check here to see if maybe Simbilis had already updated to Python 3. I am a complete new to Python user, so it's bee interesting. See if this wo...
- Wed Jun 17, 2020 4:41 pm
- Forum: Personal Investments
- Topic: Approximating total int'l stock market
- Replies: 2
- Views: 241
Re: Approximating total int'l stock market
You’re not missing anything with VTMNX + VEMIX.
See this chart from Vanguard.
Note following mutual fund to ETF equivalencies:
VTMNX => VEA
VEMIX => VWO
VFSAX => VSS
See this chart from Vanguard.
Note following mutual fund to ETF equivalencies:
VTMNX => VEA
VEMIX => VWO
VFSAX => VSS
- Mon Mar 16, 2020 7:39 am
- Forum: Personal Investments
- Topic: Basic TLH Question *updated*—clarification
- Replies: 24
- Views: 950
Re: Basic TLH Question
1. I’m assuming she can offset the gain with her loss in next year’s taxes. She’s held both for years. I'm sure you meant "the taxes for this year that she will file next year", but let's be more specific: if the loss and gain are realized in 2020 then one will offset the other in her tax...
- Sun Mar 15, 2020 12:31 pm
- Forum: Investing - Theory, News & General
- Topic: Modelling the S&P500 – spreadsheet help
- Replies: 2
- Views: 445
Re: Modelling the S&P500 – spreadsheet help
You are using today's market weights to calculate initial share purchases. Try finding and using Jan 2017 market weights to determine the number of shares you would have bought then (and thus own today). As an example, assume the market consists entirely of two companies, A and B and you have $100 t...
- Tue Feb 25, 2020 1:27 pm
- Forum: Personal Investments
- Topic: What exactly is capitalization weight for U.S., developed, and emerging markets?
- Replies: 5
- Views: 524
Re: What exactly is capitalization weight for U.S., developed, and emerging markets?
I'd use the FTSE Global All-Cap Index (GEIS), which is the index used by Vanguard Total World (VT) From the latest FTSE monthly fact sheet the U.S. accounts for 55.19% of the total world market. You could then use the Developed ex-US monthly fact sheet to learn which 24 countries are considered deve...
- Tue Feb 25, 2020 2:55 am
- Forum: Personal Investments
- Topic: Active vs. Passive Question
- Replies: 10
- Views: 1253
Re: Active vs. Passive Question
Within a given universe of stocks, the aggregate of active funds and the aggregate of passive funds will have the exact same return, before costs and fees. After costs and fees, the average passive fund, because of its lower expenses, must necessarily outperform the average active fund. This formul...
- Tue Feb 25, 2020 12:03 am
- Forum: Personal Investments
- Topic: Active vs. Passive Question
- Replies: 10
- Views: 1253
Re: Active vs. Passive Question
Active sometimes beats passive, even after fees. It happens—for years at a time in some cases. The challenge for the active fund manager(s) is consistently beating their benchmark index by enough to offset the generally higher fees for active management. This is hard. The challenge for the investor ...
- Mon Feb 24, 2020 4:12 pm
- Forum: Personal Finance (Not Investing)
- Topic: Excel Losing Support Question
- Replies: 7
- Views: 1155
Re: Excel Losing Support Question
Other threads talk about getting a new word processor and spreadsheet with the loss of Microsoft Support later this year. Will the word processor and spreadsheet become useless when the support is pulled? Thanks for the help. Can you link to these other threads so we have context for your question?...
- Sun Feb 23, 2020 4:51 am
- Forum: Personal Investments
- Topic: TSP share prices for Quicken
- Replies: 112
- Views: 25277
Re: TSP share prices for Quicken
I've been a long time user of the script, but I'm trying to update it to Python 3 now that Python 2 is deprecated. Running into an issue, so I figured I'd check here to see if maybe Simbilis had already updated to Python 3. I am a complete new to Python user, so it's bee interesting. See if this wo...
- Fri Feb 21, 2020 12:18 am
- Forum: Investing - Theory, News & General
- Topic: Minimization of maximum regret: Supportive of balanced AAs for some long-term investors?
- Replies: 161
- Views: 11274
Re: Minimization of maximum regret: Supportive of balanced AAs for some long-term investors?
It appears that regret is the difference between the outcome I got and the outcome that was (in hindsight) the optimal one. That's a very natural assumption due to the maddeningly counterintuitive name. It's a tool to make a current decision, not to assess a past decision. Suppose we break down the...
- Thu Feb 20, 2020 3:01 pm
- Forum: Personal Finance (Not Investing)
- Topic: Emergency Funds
- Replies: 20
- Views: 1969
Re: Emergency Funds
I don't have an emergency fund - I have a plan to fund emergencies. It includes a combination of current bank balances, brief credit card balances, and taxable investment accounts. To date, I've never had an emergency that required liquidating taxable investments (but I have exceptional medical care...
- Thu Feb 20, 2020 2:42 pm
- Forum: Investing - Theory, News & General
- Topic: Minimization of maximum regret: Supportive of balanced AAs for some long-term investors?
- Replies: 161
- Views: 11274
Re: Minimization of maximum regret: Supportive of balanced AAs for some long-term investors?
I don't think people are trying to avoid "under-performance". That's minimal regret. They are trying to avoid catastrophic losses, which is maximum regret. This is spot-on. In a behavioral or emotional sense, maybe. In decision analysis "maximum regret" has a rigorous definition...
- Thu Feb 20, 2020 2:21 pm
- Forum: Investing - Theory, News & General
- Topic: Minimization of maximum regret: Supportive of balanced AAs for some long-term investors?
- Replies: 161
- Views: 11274
Re: Minimization of maximum regret: Supportive of balanced AAs for some long-term investors?
I don't really seem to understand the concept of regret minimization. My investing approach is to calculate the portfolio allocation that gives the highest utility. Let's assume for a second that I arrived at an asset allocation of 100/0. It just so happens that 10 years later, this portfolio alloc...
- Fri Feb 14, 2020 3:10 pm
- Forum: Investing - Theory, News & General
- Topic: Blog post: When You Were Born > Everything Else
- Replies: 31
- Views: 2735
Re: Blog post: When You Were Born > Everything Else
I'll add one more: to whom you were born There's plenty of evidence indicating that the best environmental predictor of economic status and financial security as an adult is...the economic status and financial security of your parents when you were a child. Access to education, learned financial ha...
- Fri Feb 14, 2020 10:59 am
- Forum: Investing - Theory, News & General
- Topic: Blog post: When You Were Born > Everything Else
- Replies: 31
- Views: 2735
Re: Blog post: When You Were Born > Everything Else
I'll add one more: to whom you were born There's plenty of evidence indicating that the best environmental predictor of economic status and financial security as an adult is...the economic status and financial security of your parents when you were a child. Access to education, learned financial hab...
- Sat Feb 08, 2020 3:23 pm
- Forum: Personal Investments
- Topic: Question about buying 4 target date funds
- Replies: 6
- Views: 554
Re: Question about buying 4 target date funds
I think you’re overthinking it. Determine what asset allocation you are comfortable with and find the closest Target Retirement or LifeStrategy, and put it all in that fund. Reevaluate every few years and adjust as necessary. To relate to your proposed arrangement, consider putting 1/4 of your portf...
- Sat Feb 08, 2020 10:46 am
- Forum: Personal Finance (Not Investing)
- Topic: Promotion/Raise!
- Replies: 10
- Views: 1551
Re: Promotion/Raise!
Congratulations on the raise! My quick thoughts: - Pay off any consumer debt. - Max 401k - Open 529 accounts for children - Contribute to HSA if available and appropriate for family needs - Once tax-advantaged space is exhausted then open and invest in a taxable brokerage account Nothing wrong with ...
- Sat Feb 08, 2020 10:37 am
- Forum: Personal Finance (Not Investing)
- Topic: Couples w/ kids: What is/was the most expensive time period of your life?
- Replies: 145
- Views: 12382
Re: Couples w/ kids: What is/was the most expensive time period of your life?
In absolute terms: 1. College (most expensive) 2. High school 3. Diaper and daycare years 4. After daycare, before high school (least expensive) Generally more expensive with age. But our income growth easily outpaced the rising costs of having a family. Net disposable income in the high school and ...
- Sat Feb 08, 2020 8:21 am
- Forum: Investing - Theory, News & General
- Topic: What is the highest expense ratio you willingly pay?
- Replies: 123
- Views: 8857
Re: What is the highest expense ratio you willingly pay?
Curious to hear what other Bogleheads happily pay to get exposure to non 3-fund approved funds? My highest is 0.93%, but I don't happily pay it. I begrudgingly pay it to EJ because it's an IRA my wife inherited. The EJ financial advisor was truly amazing for my late MIL and more than earned her fee...
- Sat Feb 08, 2020 8:03 am
- Forum: Personal Investments
- Topic: Is it worthwhile to contribute to 401k without match
- Replies: 29
- Views: 3105
Re: Is it worthwhile to contribute to 401k without match
Is it worthwhile to contribute to 401k without match In general it's only worthwhile if (a) you place a high value on the flexibility and freedom of a taxable account, or (b) you assume that future marginal tax rates are significantly higher and/or long term cap gains rates are significantly lower ...
- Thu Feb 06, 2020 6:19 pm
- Forum: Personal Investments
- Topic: How much REIT in portfolio?
- Replies: 53
- Views: 4464
Re: How much REIT in portfolio?
REITs were a disaster during the financial crisis. Total Stock may have dropped 40% - 50% (I don't recall the specifics) but REITs dropped 75% (or more possibly) providing no additional diversification. That’s true, but we can pick another starting point that tells a very different story . $10,000 ...
- Wed Feb 05, 2020 2:31 pm
- Forum: Personal Investments
- Topic: Help With Approximating Total Stock Market
- Replies: 3
- Views: 526
Re: Help With Approximating Total Stock Market
Have you considered using the ticker symbols (added in blue) for the indices? Essentially I'm trying to compare historical returns for hypothetical portfolios with no fees or tracking error: Portfolio 1 (Note there should be no re-balancing and the starting percentages vary slightly based on purchas...
- Mon Feb 03, 2020 3:13 pm
- Forum: Investing - Theory, News & General
- Topic: Cost Matters 2020
- Replies: 41
- Views: 7256
Re: Cost Matters 2020
Difficult to check your work when calculations are not included in the sheet; I am seeing hard-coded values. Agreed. Mostly gave up trying to audit when I found too many values that weren't (or couldn't be) explained. Please check my work In cell G31: =SUM(G28:G30)*(1-B24)^30 Why does formula refer...
- Mon Feb 03, 2020 2:26 pm
- Forum: Personal Investments
- Topic: WealthFront account
- Replies: 13
- Views: 1260
Re: WealthFront account
I don't think direct indexing would be helpful for my case because I was just thinking of using Wealthfront to get ideas on investing. Wealthfront is pretty open about their methodology and allocation based on "risk score". Some examples here or a ton of articles here . You might also be ...
- Sun Feb 02, 2020 3:38 am
- Forum: Investing - Theory, News & General
- Topic: Morningstar: "The Best Fund Companies And Their Ratings"
- Replies: 17
- Views: 1947
Re: Morningstar: "The Best Fund Companies And Their Ratings"
Bogleheads: Morningstar has published a study of 22 mutual fund companies. Vanguard tops the list: I see Vanguard in second place having received an overall rating of 3.85, behind Dodge & Cox with a 4.00. Whether an individual investor can objectively differentiate between any of the top firms ...
- Sat Feb 01, 2020 10:23 am
- Forum: Investing - Theory, News & General
- Topic: Morningstar: "The Best Fund Companies And Their Ratings"
- Replies: 17
- Views: 1947
Re: Morningstar: "The Best Fund Companies And Their Ratings"
Weird that Schwab isn’t mentioned. Does this mean they’re bad...or something about them precludes them from being rated? I wonder if for some reason they just didn't meet the criteria for inclusion. Like maybe they don't manage as many mutual funds? No idea though. Author made a choice to leave out...
- Sat Feb 01, 2020 4:18 am
- Forum: Personal Consumer Issues
- Topic: I have a question for those in early FIRE or planning on early FIRE
- Replies: 81
- Views: 8416
Re: I have a question for those in early FIRE or planning on early FIRE
Which begs the question: Can there be a late FIRE (L-FIRE)? Or do the L and E cancel out and become FIR?
- Sat Feb 01, 2020 3:23 am
- Forum: Investing - Theory, News & General
- Topic: Morningstar: "The Best Fund Companies And Their Ratings"
- Replies: 17
- Views: 1947
Re: Morningstar: "The Best Fund Companies And Their Ratings"
Bogleheads: Morningstar has published a study of 22 mutual fund companies. Vanguard tops the list: I see Vanguard in second place having received an overall rating of 3.85, behind Dodge & Cox with a 4.00. Whether an individual investor can objectively differentiate between any of the top firms ...
- Tue Jan 14, 2020 3:30 pm
- Forum: Personal Investments
- Topic: Best Thrift Savings Plan (TSP) book or resource?
- Replies: 14
- Views: 1212
Re: Best Thrift Savings Plan (TSP) book or resource?
I'm a fairly new federal employee and I'm looking for a good resource to understand the ins and outs of the federal Thrift Savings Plan, or TSP. The Bogleheads TSP Wiki has some great information (https://www.bogleheads.org/wiki/Thrift_Savings_Plan), but I'm seeking more. There are a lot of rules a...
- Mon Jan 13, 2020 1:44 pm
- Forum: Investing - Theory, News & General
- Topic: Value of Active and Ongoing Reading of the Bogleheads Forums
- Replies: 104
- Views: 9432
Re: Value of Active and Ongoing Reading of the Bogleheads Forums
If you don't mind sharing, what are some of your other favorite forums? WhiteCoatInvestor forum Cadillac forum Nasty Z28 forum MX-5 Miata forum [sarcasm]As you can tell, I have a wide variety of interests...[/sarcasm] Although I haven't been much on the car forums lately. I've been on quite the fin...
- Sun Jan 12, 2020 9:57 am
- Forum: Personal Finance (Not Investing)
- Topic: Renting vs. Buying in Manhattan
- Replies: 21
- Views: 1964
Re: Renting vs. Buying in Manhattan
She is willing to rent/buy along with one of her friends but obviously has no savings right now so most of it will have to go on the mortgage. "Buy a first home with a friend" is one of the classic blunders 1 Rent for a year. This allows her to: Build capital Become familiar with city and...
- Sun Jan 12, 2020 6:31 am
- Forum: Personal Investments
- Topic: Expat income and 401(k)
- Replies: 22
- Views: 2748
Re: Expat income and 401(k)
Agreed! I'm in the fortunate position of also not being subject to host country taxes, so on the far side of the confusion and complexity there is some great opportunity. Not subject because of the particular country or because of employer tax-equalization? It's the tax-equalization, which gets US_...
- Sun Jan 12, 2020 5:50 am
- Forum: Personal Finance (Not Investing)
- Topic: selling taxable stock: 401k or Roth investing smarter?
- Replies: 7
- Views: 415
Re: selling taxable stock: 401k or Roth investing smarter?
Emergency fund. Finish getting the match. Roth IRA. OP: retiredjg is right on target based on the information you presented. If you have consumer debt (credit cards, personal loans, etc...) that you haven't mentioned, then I'd supplement his advice with: Emergency fund. Pay off consumer debt. Finis...
- Sun Jan 12, 2020 5:26 am
- Forum: Investing - Theory, News & General
- Topic: Value of Active and Ongoing Reading of the Bogleheads Forums
- Replies: 104
- Views: 9432
- Sun Jan 12, 2020 5:04 am
- Forum: Personal Investments
- Topic: Expat income and 401(k)
- Replies: 22
- Views: 2748
Re: Expat income and 401(k)
I recently began working overseas for US employer and have been struggling to find definitive answers to many of the same questions. I'm far from an expert, but from what I've been able to learn... Am I making a big mistake contributing to this traditional 401K? It might not have been optimal, but p...
- Sun Jan 12, 2020 12:30 am
- Forum: Investing - Theory, News & General
- Topic: Value of Active and Ongoing Reading of the Bogleheads Forums
- Replies: 104
- Views: 9432
Re: Value of Active and Ongoing Reading of the Bogleheads Forums
The final, definitive, canonical, unassailable, unanimous, and irrefutable answer to the question of “How much international?” could appear any day now.
You wouldn’t want to miss that.
You wouldn’t want to miss that.
- Sat Jan 11, 2020 12:41 am
- Forum: Personal Investments
- Topic: Where do you keep your Emergency Funds? How is it invested?
- Replies: 139
- Views: 12126
Re: Where do you keep your Emergency Funds? How is it invested?
I discarded the concept of an emergency fund years ago in favor of a plan to fund emergencies.
I get paid monthly and keep 1.2 x upcoming month expenses in cash. The remainder is transferred to brokerage and invested according to my AA.
I get paid monthly and keep 1.2 x upcoming month expenses in cash. The remainder is transferred to brokerage and invested according to my AA.
- Tue Jan 07, 2020 5:08 pm
- Forum: Personal Investments
- Topic: TSP C/S Fund to Replicate Total Stock Market
- Replies: 6
- Views: 979
Re: TSP C/S Fund to Replicate Total Stock Market
Per this Vanguard page, the S&P 500 is about 82% of US market cap.
Anything around 80% will be close enough.
Anything around 80% will be close enough.