Search found 490 matches

by international001
Sun Dec 09, 2018 4:40 am
Forum: Investing - Help with Personal Investments
Topic: Vanguard Wellesly Income
Replies: 28
Views: 2611

Re: Vanguard Wellesly Income

I haven't see any passive combination of funds beat Wellesly.

Said that, it should be not used on a taxable account. It's very tax inefficient (by design)
by international001
Sat Dec 08, 2018 4:44 pm
Forum: Investing - Theory, News & General
Topic: (NEW) WisdomTree 90/60 U.S. Balanced Fund
Replies: 172
Views: 12190

Re: (NEW) WisdomTree 90/60 U.S. Balanced Fund

Mostly this is just the easiest way in Portfolio Visualizer to simulate a leveraged portfolio. It's roughly analogous to the way you'd lever in real life (e.g. borrowing at some rate in order to purchase securities on margin, or holding cash as collateral on a futures contract), but I make no promi...
by international001
Fri Dec 07, 2018 5:19 pm
Forum: Investing - Theory, News & General
Topic: (NEW) WisdomTree 90/60 U.S. Balanced Fund
Replies: 172
Views: 12190

Re: (NEW) WisdomTree 90/60 U.S. Balanced Fund

I must have made a custom series, but I've since deleted it. You can get an approximation by building a portfolio that is 90% stocks, 60% bonds and -50% cash. https://www.portfoliovisualizer.com/backtest-portfolio?s=y&timePeriod=4&startYear=1930&firstMonth=1&endYear=2018&lastMonth=12&calendarAligne...
by international001
Fri Dec 07, 2018 10:14 am
Forum: Investing - Theory, News & General
Topic: Why Retirement Is Broken And Needs To Be Reinvented
Replies: 174
Views: 11771

Re: Why Retirement Is Broken And Needs To Be Reinvented

The issue is the volatility of returns. How can you issue a promise to pay X when you can’t account for sequence of risk? What is the formula for that? Bankruptcy to make good on a promise with unlimited cost? The simple answer is that annuity companies manage to do precisely that, and while making...
by international001
Thu Dec 06, 2018 10:23 am
Forum: Investing - Theory, News & General
Topic: (NEW) WisdomTree 90/60 U.S. Balanced Fund
Replies: 172
Views: 12190

Re: (NEW) WisdomTree 90/60 U.S. Balanced Fund

Historically since 1930, a portfolio like this would have theoretically had returns about 24% higher than a 100/0 portfolio with 8% less annual volatility. So I think it is interesting in principle. Out of curiosity: link? Here's a link to a backtest in PortfolioVisualizer (with the caveat the quic...
by international001
Mon Dec 03, 2018 2:59 pm
Forum: Personal Finance (Not Investing)
Topic: Home Purchase Price vs. Gross Income
Replies: 59
Views: 4268

Re: Home Purchase Price vs. Gross Income

If this ratio, was meaningful, then you would have to downsize if your house price goes from let's say x2 to x4
I rather prefer the 30% gross income dedicated to housing (mortgage or renting)
by international001
Fri Nov 30, 2018 7:04 pm
Forum: Investing - Theory, News & General
Topic: Doing TLH manually
Replies: 18
Views: 1141

Re: Doing TLH manually

I'm thinking to follow the following strategy I bought both VBR and VIOV before they both went down. They are alike but 'substantially different' day 0: I can sell $X of VIOB and buy VBR day 31: I can sell $X of VBR and buy VIOV I'll be 'likely' in the same position that I would have been w/o any tr...
by international001
Fri Nov 30, 2018 6:55 pm
Forum: Investing - Theory, News & General
Topic: Doing TLH manually
Replies: 18
Views: 1141

Re: Doing TLH manually

I'm not interested of doing anything illegal. Just what is the glass it's being looked at to be considered illegal. Same like with mega-backdoors conversions, etc. If anybody knows a case where IRS enforced wash sale rule, I'd like to know and understand the conditions I'm not a tax lawyer, but the...
by international001
Fri Nov 30, 2018 6:43 pm
Forum: Investing - Theory, News & General
Topic: Doing TLH manually
Replies: 18
Views: 1141

Re: Doing TLH manually

I agree with your math. Thanks for the exercise.
And I meant the same. You end up paying less taxes overall, but you are still transferring them to the future
by international001
Fri Nov 30, 2018 1:40 pm
Forum: Investing - Theory, News & General
Topic: Doing TLH manually
Replies: 18
Views: 1141

Re: Doing TLH manually

I'd love to hear any stories of how/if you can get in trouble I think the rule on Bogleheads is that we don't suggest things that might be illegal, even if the chance of getting caught is very slim. The phrase is "substantially identical", which must be somehow less identical than "identical" . I w...
by international001
Fri Nov 30, 2018 12:37 pm
Forum: Investing - Theory, News & General
Topic: Doing TLH manually
Replies: 18
Views: 1141

Re: Doing TLH manually

(since I don't want to use a roboadvisor) I have some funds/ETFs that I bought this year and went down in price. If I understand correctly - TLH is benefitial even if it's short time losses. It allows to transfer the payment of taxes in the future. In the meantime, you get some extra cash (by savin...
by international001
Fri Nov 30, 2018 8:56 am
Forum: Investing - Theory, News & General
Topic: Doing TLH manually
Replies: 18
Views: 1141

Re: Doing TLH manually

1) I will do it. Others may disagree. I think you understand the issue here based on your OP. 2) I will not do it. I view them as substantially identical. Others may disagree. I think VBR is safer. https://www.bogleheads.org/forum/viewtopic.php?t=126332 Sorry.. what did you mean by 1 and 2 (I didn'...
by international001
Fri Nov 30, 2018 5:33 am
Forum: Investing - Theory, News & General
Topic: Doing TLH manually
Replies: 18
Views: 1141

Doing TLH manually

(since I don't want to use a roboadvisor) I have some funds/ETFs that I bought this year and went down in price. If I understand correctly - TLH is benefitial even if it's short time losses. It allows to transfer the payment of taxes in the future. In the meantime, you get some extra cash (by saving...
by international001
Thu Nov 29, 2018 6:44 pm
Forum: Investing - Help with Personal Investments
Topic: Investing all at once vs dollar cost averaging?
Replies: 39
Views: 2542

Re: Investing all at once vs dollar cost averaging?

Supposedly lump sum is the way to go according to back testing. I did that earlier this year into VTI ETF. Vanguard total stock market. I did a lump sum after the market had its drop in February. It struggled and now is negative for the year. Long term holding now. But a lost year here in 2018 (unl...
by international001
Sun Nov 18, 2018 6:40 pm
Forum: Investing - Help with Personal Investments
Topic: My Edward Jones IRA is out performing my Vanguard 401K
Replies: 76
Views: 10235

Re: My Edward Jones IRA is out performing my Vanguard 401K

I used PortfolioVisualizer to compare your Edward Jones portfolio with 2 Vangard benchmark portfolios. (1) Benchmark#1 - 3 Fund with same US, International, and bond allocations as the Ed Jones portfolio. (2) Benchmark#2 - Vanguard index portfolio with the same growth style tilt as the Ed Jones por...
by international001
Fri Nov 16, 2018 3:48 pm
Forum: Investing - Help with Personal Investments
Topic: Roth vs. Traditional 401k
Replies: 132
Views: 7028

Re: Roth vs. Traditional 401k

Thanks for the info. I was assuming the social security was 100% taxable. Still, it doesn't make a huge difference.
by international001
Fri Nov 16, 2018 12:50 pm
Forum: Investing - Help with Personal Investments
Topic: Roth vs. Traditional 401k
Replies: 132
Views: 7028

Re: Roth vs. Traditional 401k

international001, <<I have been arguing to do both Trad 401k and Roth IRA. Only question is how much of each. >> Max up the Trad. 401K and put the tax savings into Roth IRA is the best combination even in the early years. << I'm also making all the numbers inflation adjusted >> You forgot to inflat...
by international001
Fri Nov 16, 2018 6:38 am
Forum: Investing - Help with Personal Investments
Topic: Roth vs. Traditional 401k
Replies: 132
Views: 7028

Re: Roth vs. Traditional 401k

international001, <<Investing after 40 only in 401k pre-tax the max, I think I can get to 1.25M at 65. >> Do the math and show us how this is possible. It is not between Trad. 401K versus Roth 401K. It is between Trad. 401K with Roth IRA versus Roth 401K only, <<Given all the uncertainties of the t...
by international001
Thu Nov 15, 2018 2:09 pm
Forum: Investing - Theory, News & General
Topic: Asset allocation in Roth vs pre-tax
Replies: 8
Views: 910

Re: Asset allocation in Roth vs pre-tax

Does it make any difference to allocate most risky assets (like stocks) in Roth? I say no, but perhaps I'm missing something. It is better to keep low growth assets like bonds in traditional accounts and high growth assets like stocks in Roth accounts. The reason is that having more money in tradit...
by international001
Thu Nov 15, 2018 9:12 am
Forum: Investing - Help with Personal Investments
Topic: Roth vs. Traditional 401k
Replies: 132
Views: 7028

Re: Roth vs. Traditional 401k

international001, 1) A person can postpone social security up to 70 years old. 2) You are assuming that person is employed continuously all the way up to 70 years old. Is this a good bet? <<Again, I expect my marginal tax rate to >= 22% on retirement (*after* all the 401k pre-tax I'll distribute), ...
by international001
Wed Nov 14, 2018 2:43 pm
Forum: Investing - Help with Personal Investments
Topic: Roth vs. Traditional 401k
Replies: 132
Views: 7028

Re: Roth vs. Traditional 401k

international001, No pension. Then, tell me why it is a good deal. KlangFool Sorry.. I meant 33k in social security. If you don't have anything in pension/SS, then you have to do the exact numbers. There is a big chunk of money that can be taxed below your marginal tax rate and then it may be bette...
by international001
Wed Nov 14, 2018 12:20 pm
Forum: Investing - Theory, News & General
Topic: Asset allocation in Roth vs pre-tax
Replies: 8
Views: 910

Re: Asset allocation in Roth vs pre-tax

Yes.. RMD are a concern and a reason to prefer Roths. But I'm assuming there are no RMD (or inheritance) for simplicity You should not care about having bonds in a Roth vs 401k pre-tax as long as the overall portfolio (Roth + 401k pre-tax) has the same allocation I cannot understand why you wouldn't...
by international001
Wed Nov 14, 2018 12:04 pm
Forum: Investing - Help with Personal Investments
Topic: Roth vs. Traditional 401k
Replies: 132
Views: 7028

Re: Roth vs. Traditional 401k

I don't think there is one simple rule of thumb that works for *most* people. You have to figure out where you are in the grid of competing aspects. General concepts: * Diversification is good - strive for some traditional, some Roth, some taxable. Not necessarily at the same time - go for tax adva...
by international001
Wed Nov 14, 2018 11:55 am
Forum: Investing - Help with Personal Investments
Topic: Roth vs. Traditional 401k
Replies: 132
Views: 7028

Re: Roth vs. Traditional 401k

A) If you follow my advice, Pre-Tax 401K plus Roth IRA at 12%, what will that money tax at retirement? B) It is close to impossible to be tax at 24% with my recommendation using your income assumption. The only exception will be if you have a very good pension. So, please explain to me how is it po...
by international001
Wed Nov 14, 2018 5:26 am
Forum: Investing - Theory, News & General
Topic: Asset allocation in Roth vs pre-tax
Replies: 8
Views: 910

Asset allocation in Roth vs pre-tax

Hi, Let's say the proportion of Roth or pre-tax is already chosen. And that your asset allocation allocation is the one that you desire for the *whole* portfolio (so you rebalance every year, at least). You have to weight the pre-tax by (let's say) 0.8 (assuming it will be taxed at 20% at retirement...
by international001
Wed Nov 14, 2018 5:23 am
Forum: Investing - Help with Personal Investments
Topic: Roth vs. Traditional 401k
Replies: 132
Views: 7028

Re: Roth vs. Traditional 401k

international001, << Assuming your income is not low enough,>> Pick your numbers. Then, we can show how it does not any sense with any set of real number. <<Of course, if you expect your retirment marginal tax to be very low, then do everything pre-tax, but it's a risky bet, I'd say>> It is a risky...
by international001
Tue Nov 13, 2018 5:19 pm
Forum: Investing - Help with Personal Investments
Topic: Roth vs. Traditional 401k
Replies: 132
Views: 7028

Re: Roth vs. Traditional 401k

IT has beaten to death in other threads. Unless you are 100% your tax rate (not only marginal, but above SSN and other incomes) will be lower when retired, it's better to have a combination of Roth or pre-tax (IRA or 401k, whatever). Given the low tax brackets today, there is a high likelihood that...
by international001
Sun Nov 11, 2018 3:34 pm
Forum: Investing - Theory, News & General
Topic: Wow! Just discovered "Portfolio Visualizer".
Replies: 26
Views: 8993

Re: Wow! Just discovered "Portfolio Visualizer".

Backtesting is not only about finding the best past portfolio. Also about backtesting variance
I like to backtest my portfolio about different 10, 20 years intervals. If it performs about well in all these intervals, then it's a decent choice
by international001
Sun Nov 11, 2018 3:26 pm
Forum: Investing - Help with Personal Investments
Topic: Roth vs. Traditional 401k
Replies: 132
Views: 7028

Re: Roth vs. Traditional 401k

IT has beaten to death in other threads. Unless you are 100% your tax rate (not only marginal, but above SSN and other incomes) will be lower when retired, it's better to have a combination of Roth or pre-tax (IRA or 401k, whatever). Given the low tax brackets today, there is a high likelihood that ...
by international001
Sun Nov 11, 2018 3:17 pm
Forum: Investing - Theory, News & General
Topic: Debunking Bonds in Taxable
Replies: 99
Views: 10487

Re: Debunking Bonds in Taxable

So. at the end, do we have to compare 15% * stocks return vs marginal-tax% * bonds return to decide where to allocate? No, because the return on the stocks is deferred. If you have $100K in stock with an 8% return, you now have $108K, but your tax cost is not $1200. If the dividend yield is 2%, you...
by international001
Fri Nov 09, 2018 9:02 am
Forum: Personal Finance (Not Investing)
Topic: Job vs term life insurance
Replies: 35
Views: 3077

Re: Job vs term life insurance

All are good points... but still doesn't answer my question.
employer life insurance + portability
vs
term life insurance (out of employer)

Which one is cheaper and based on which factors? And are there any differences?
by international001
Thu Nov 08, 2018 5:23 pm
Forum: Personal Finance (Not Investing)
Topic: Job vs term life insurance
Replies: 35
Views: 3077

Re: Job vs term life insurance

- Does it make any financial sense to lock for X years, or is it better to get it for X/2 years and then renew it for X/2 years? If you health has not changed, I guess it would be the same No. Because the chance of mortality in your risk group rises every year. Thus, even if your health has not cha...
by international001
Thu Nov 08, 2018 5:19 pm
Forum: Personal Finance (Not Investing)
Topic: Job vs term life insurance
Replies: 35
Views: 3077

Re: Job vs term life insurance

Are you paying for 6x salary or is your employer providing it (required?) How much insurance do you need? I see on my paycheck ~$27 as imputed income and the same $27 of after-tax deduction. After a salary increase, that $27 increased a bit It was supposed to cost ~$22 How does the math work? Am I ...
by international001
Thu Nov 08, 2018 5:12 pm
Forum: Personal Finance (Not Investing)
Topic: Job vs term life insurance
Replies: 35
Views: 3077

Re: Job vs term life insurance

Group life insurance from your employer can often be converted to an individual policy after employment ends. The premium will likely go up substantially (sometimes extraordinarily) because the only people that convert are those that likely can't get insurance elsewhere. If people are working at a ...
by international001
Thu Nov 08, 2018 10:27 am
Forum: Investing - Theory, News & General
Topic: Debunking Bonds in Taxable
Replies: 99
Views: 10487

Re: Debunking Bonds in Taxable

Let's take some extreme examples. Suppose you have a bond fund that pays exactly 0.0% yield and 0.0% expected capital appreciation. What would be the point of holding that in an IRA? There's no tax on it, and there never will be tax on it, so all you're doing is complicating your life by cluttering...
by international001
Thu Nov 08, 2018 9:18 am
Forum: Personal Finance (Not Investing)
Topic: Job vs term life insurance
Replies: 35
Views: 3077

Re: Job vs term life insurance

I called Metlife. They seem to offer portability from employer to personal life insurance

Found this: http://louisville.edu/hr/benefits/life/ ... n-brochure

Anything against it? IT seems good to use employer LI if you can convert automatically upon employment termination
by international001
Tue Nov 06, 2018 7:12 pm
Forum: Personal Finance (Not Investing)
Topic: Are we in trouble?
Replies: 106
Views: 12880

Re: Are we in trouble?

This post is a great example of why the 2X mortgage size rule exists. At 370k/year you really shouldn't have more than a 700-800k mortgage. That would require a 400k downpayment on a house that expensive. Also, never buy a home in a new location without first renting for a year and making sure your...
by international001
Tue Nov 06, 2018 7:09 pm
Forum: Personal Finance (Not Investing)
Topic: Are we in trouble?
Replies: 106
Views: 12880

Re: Are we in trouble?

Could the 5 month delay in construction of the new house be used to "escape" the purchase? Should that be investigated? The combination of the previous house not selling + purchase price on the new place has to be a stressful combination. Even at a high income. Getting just below $700k is a good fi...
by international001
Tue Nov 06, 2018 6:51 pm
Forum: Investing - Theory, News & General
Topic: Debunking Bonds in Taxable
Replies: 99
Views: 10487

Re: Debunking Bonds in Taxable

Do you agree there is a bond yield/expected return at which it is correct for you to put stocks in tax-protected? I disagree. Let's assume infinite amount of time, so what matters is compound return If you want to keep a constant level or volatility, it's better to have bonds in tax-protected (you ...
by international001
Tue Nov 06, 2018 6:15 pm
Forum: Investing - Theory, News & General
Topic: Debunking Bonds in Taxable
Replies: 99
Views: 10487

Re: Debunking Bonds in Taxable

That part is no so simple. The first thing that comes out are direct contributions. There is no clock attached to those. Then you can get to the conversions (including back doors) and rollovers like mega backdoor that may have a 5 tax year clock attached to the part that was taxed because of the ro...
by international001
Mon Nov 05, 2018 12:59 pm
Forum: Investing - Theory, News & General
Topic: Debunking Bonds in Taxable
Replies: 99
Views: 10487

Re: Debunking Bonds in Taxable

Ok.. so let me understand You can convert 401k-pre-tax -> Roth IRA after you have left the job for which 401k was associated You can withdraw these conversions to Roth IRA as long as they had stayed 5 years in the Roth IRA If you do another type of contribution (direct, backdoor, mega-backdoor) to t...
by international001
Sat Nov 03, 2018 2:11 pm
Forum: Investing - Theory, News & General
Topic: Debunking Bonds in Taxable
Replies: 99
Views: 10487

Re: Debunking Bonds in Taxable

Given that you can move +$60k to tax-sheltered accounts these days, it only makes sense to use taxable for retirement if you have a very high income or if you plan to retire early. There are several very effective and realistic means of accessing money prior to age 59.5 from tax-advantaged accounts...
by international001
Sat Nov 03, 2018 2:09 pm
Forum: Investing - Theory, News & General
Topic: Debunking Bonds in Taxable
Replies: 99
Views: 10487

Re: Debunking Bonds in Taxable

Some other consideration.. if you have to invest bonds on taxable.. use treasuries. They give you the lowest yield (less taxes) and counter-balance better stocks (don't get corporate bonds or high yield bonds). There are so many great options that are best or only available in taxable space such as...
by international001
Sat Nov 03, 2018 1:43 pm
Forum: Personal Finance (Not Investing)
Topic: New HSA provider Lively offers investments for $30/yr fee
Replies: 344
Views: 50661

Re: New HSA provider Lively offers investments for $30/yr fee

I plan to leave the contributions on HealthEquity (what my employer provides) and use them for medical payments. But I'll move the big chunk of money to something (like Lively). Anything wrong with my strategy? Be sure to move that money via direct trustee-to-trustee transfer and not a rollover whi...
by international001
Tue Oct 30, 2018 1:49 pm
Forum: Personal Finance (Not Investing)
Topic: New HSA provider Lively offers investments for $30/yr fee
Replies: 344
Views: 50661

Re: New HSA provider Lively offers investments for $30/yr fee

I plan to leave the contributions on HealthEquity (what my employer provides) and use them for medical payments. But I'll move the big chunk of money to something (like Lively).

Anything wrong with my strategy?
by international001
Tue Oct 30, 2018 1:47 pm
Forum: Investing - Theory, News & General
Topic: Debunking Bonds in Taxable
Replies: 99
Views: 10487

Re: Debunking Bonds in Taxable

There seems to be many compromises around. For instance, I don't want my taxable go down 50% during a recession, because this is money I may use to buy a house, for instance, or if one day I get tired of working and I decide to pursue FI. If you make one special (mental or actual account) that you a...
by international001
Sun Oct 28, 2018 9:21 pm
Forum: Investing - Theory, News & General
Topic: Debunking Bonds in Taxable
Replies: 99
Views: 10487

Re: Debunking Bonds in Taxable

Everything depends on personal situations. But I thought the simplified premise was clear. How to get at 65 the max return at the same level or risk with both a taxable and a tax-sheltered account. It is using bonds in tax-sheltered. I personally won't do it because I may not want to wait till retir...
by international001
Thu Oct 25, 2018 8:31 am
Forum: Investing - Theory, News & General
Topic: Debunking Bonds in Taxable
Replies: 99
Views: 10487

Re: Debunking Bonds in Taxable

The risk is really in the margins though. If my investments return an extra dollar, that dollar will get taxed at the marginal rate. Therefore, the variation in portfolio outcomes is scaled down by the marginal rate, not the effective rate. So if you are trying to determine the optimal asset locati...
by international001
Tue Oct 23, 2018 8:45 am
Forum: Investing - Theory, News & General
Topic: Debunking Bonds in Taxable
Replies: 99
Views: 10487

Re: Debunking Bonds in Taxable

If your bracket is 31%, the tax drag on withdrawals will likely be significantly less than 31%. I was thinking the same. You have to consider not only the last dollar of your pre-tax 401k but also the first dollar of your pre-tax 401k (after you count SS, taxable distributions and any other income)
by international001
Mon Oct 22, 2018 10:28 am
Forum: Investing - Theory, News & General
Topic: Debunking Bonds in Taxable
Replies: 99
Views: 10487

Re: Debunking Bonds in Taxable

Tx.. good points So let's say you want to rebalance between taxable and not taxable so the percentage of bonds is constant across them. Perhaps you can weight differently (multiply taxable by 1/0.85, tax-sheltered by 1/0.70 -assuming your marginal tax 30% -, to consider the actual money you would ha...