Search found 203 matches

by lukestuckenhymer
Fri Nov 08, 2019 12:33 pm
Forum: Investing - Theory, News & General
Topic: The hidden cost of Fidelity’s ZERO funds
Replies: 66
Views: 5610

Re: The hidden cost of Fidelity’s ZERO funds

YTD per Morningstar: VTSAX: 24.50% SWTSX: 24.58% SCHB: 24.61% FZROX: 24.83% Total return includes dividends reinvested. With 2484 holdings, SCHB would seem to follow the closest index to FZROX. In any case, if there is a hidden cost to FZROX, I am not seeing it. Within 33 basis points of each other...
by lukestuckenhymer
Thu Nov 07, 2019 12:48 pm
Forum: Investing - Theory, News & General
Topic: The hidden cost of Fidelity’s ZERO funds
Replies: 66
Views: 5610

Re: The hidden cost of Fidelity’s ZERO funds

I have always thought if Vanguard will ever end up paying dividends each month (instead of quarterly or yearly)? Why? Paying dividends is a drag on performance. The accounting is tricky, so extra accountants are needed. If not done correctly one could blow up the fund. Assets have to be liquidated ...
by lukestuckenhymer
Tue Nov 05, 2019 4:18 pm
Forum: Personal Investments
Topic: Whole life insurance. Dump it or other alternatives?
Replies: 21
Views: 1163

Re: Whole life insurance. Dump it or other alternatives?

Whole Life is a scam being pushed by unsavory salespeople who sometimes convince unsuspecting customers that it's an investment. It is a money pit and should be illegal, frankly. Dump it and get a term life policy if you need coverage.
by lukestuckenhymer
Tue Nov 05, 2019 4:02 pm
Forum: Investing - Theory, News & General
Topic: Robinhood, Heading for a Trainwreck?
Replies: 41
Views: 5409

Re: Robinhood, Heading for a Trainwreck?

Don't give fintech startups your money. These companies exist in a Silicon Fairytale Land where money grows on trees and losing billions every year in the name of growth is an acceptable practice. Why would they be concerned if they lose your money?
by lukestuckenhymer
Mon Nov 04, 2019 8:00 pm
Forum: Investing - Theory, News & General
Topic: Is it OK to take less risk and spend more money once you’ve reached your goals even if you are young?
Replies: 63
Views: 5439

Re: Is it OK to take less risk and spend more money once you’ve reached your goals even if you are young?

It's seems you're saving enough to come out ahead every month. That's a good thing, but it can all change in an instant. If you're asking whether or not at age 30 to sacrifice savings in order to spend money on things that you may not need, the answer is "no."
by lukestuckenhymer
Fri Nov 01, 2019 12:32 pm
Forum: Investing - Theory, News & General
Topic: What are you up YTD? [Year To Date]
Replies: 2519
Views: 464695

Re: What are you up YTD? [Year To Date]

19.6% YTD
(90/10 allocation, equity allocation is global cap)
IRA contribution in January and frontloading most of the 403(b) helped.

This was interesting as well- 1, 3 & 6 month returns are almost equal:
1 month 2.6%
3 months 2.6%
6 months 2.7%
by lukestuckenhymer
Tue Oct 29, 2019 4:26 pm
Forum: Personal Investments
Topic: What should a mid 30s Asset Allocation be?
Replies: 45
Views: 2298

Re: What should a mid 30s Asset Allocation be?

Most patients don't have the ability to pay for their care even now. The government pays for them (Medicare/Medicaid). So realistically my income stream is very secure. This is the exact answer that I got when I talked to the local hospital billing department after we had our baby. Went in to pay o...
by lukestuckenhymer
Tue Oct 29, 2019 3:56 pm
Forum: Personal Investments
Topic: Holding bonds vs 100% equities
Replies: 367
Views: 21020

Re: Holding bonds vs 100% equities

I think it is worth holding some bonds, because many people are less risk-tolerant than they believe. I'd say hold 10 - 20% for behavioral reasons. Ultimately a personal decision, but those 100% equity returns are "academic" in the sense they assume no tinkering. For me personally, in the context o...
by lukestuckenhymer
Fri Oct 25, 2019 11:50 am
Forum: Investing - Theory, News & General
Topic: U.S. stocks continue to soar!
Replies: 1971
Views: 203384

Re: U.S. stocks continue to soar!

StandingRock wrote:
Fri Oct 25, 2019 11:37 am
Broken Man 1999 wrote:
Fri Oct 25, 2019 11:15 am


Still, tomorrow might bring a swoon. No guarantees up or down.

Tomorrow is Saturday.
...maybe he meant tomorrow as in "The world of tomorrow"
by lukestuckenhymer
Thu Oct 24, 2019 1:23 pm
Forum: Investing - Theory, News & General
Topic: Christine Benz article on door to door financial people
Replies: 59
Views: 6227

Re: Christine Benz article on door to door financial people

A great article. It really is time for financial salespeople to stop going Door-to-Door. I appreciate the awareness she is bringing to those with cognitive disabilities.

A "No Soliciting" sign should be loud and clear. Yet people keep ringing the doorbell.
by lukestuckenhymer
Wed Oct 23, 2019 12:38 pm
Forum: Personal Finance (Not Investing)
Topic: I bought a STOLEN vehicle!!!
Replies: 106
Views: 15187

Re: I bought a STOLEN vehicle!!!

Sorry this happened to you :? It makes me want to stay away from private parties in the future for any car purchases, even if I pay a premium at the dealer. :shock: Same, as if I needed another reason. Talk about a nightmare. I think the buying New vs. Slightly Used argument has been settled for me...
by lukestuckenhymer
Wed Oct 23, 2019 11:44 am
Forum: Personal Finance (Not Investing)
Topic: What do Bogleheads think about House Hacking?
Replies: 51
Views: 6048

Re: What do Bogleheads think about House Hacking?

I've lived in several duplexes before, and there's no return that could ever make me want to live in a building with shared walls, let alone my own tenant as a neighbor. I'll make sacrifices elsewhere (cars, vacations, everyday purchases) before I sacrifice privacy/peace and quiet. I've had enough r...
by lukestuckenhymer
Mon Oct 21, 2019 11:57 am
Forum: Investing - Theory, News & General
Topic: what was vanguard like before the internet?
Replies: 74
Views: 7310

Re: what was vanguard like before the internet?

My first MF was Windsor mailing my check in with a prepaid envelope. I think it was a while before Vanguard would let you view your account on line, but you could only do this with with an AOL account. I guess that Vanguard didn't trust the "web" but America On Line had a direct connection to Vangu...
by lukestuckenhymer
Tue Oct 15, 2019 3:58 pm
Forum: Investing - Theory, News & General
Topic: Bank of America declares 'the end of the 60-40' standard portfolio
Replies: 88
Views: 15159

Re: Bank of America declares 'the end of the 60-40' standard portfolio

Bonds, formerly for safety, are no longer safe... so "take on more risk"?? What kind of logic is that?
by lukestuckenhymer
Tue Oct 08, 2019 1:00 pm
Forum: Personal Finance (Not Investing)
Topic: Personal Capital website?
Replies: 26
Views: 2370

Re: Personal Capital website?

I used PC for a while, but certain accounts just wouldn't update (even big banks like Chase) and I was constantly reentering passwords and authenticating. It got frustrating so I discontinued using it. Not to mention the obnoxious phone calls. You still can't beat tracking net worth using a spreadsh...
by lukestuckenhymer
Tue Oct 08, 2019 12:41 pm
Forum: Personal Finance (Not Investing)
Topic: Finance or Accounting Degree?
Replies: 81
Views: 5680

Re: Finance or Accounting Degree?

KlangFool wrote:
Sat Oct 05, 2019 10:54 am
But, you cannot go into the accounting area with a finance degree.
I did exactly that :D

Granted, I've worked in non-profit accounting, not Big 4. If I could have done it over I would have gone with an Accounting major, but I'm still very happy with the path it's lead me on.
by lukestuckenhymer
Sun Oct 06, 2019 5:23 pm
Forum: Personal Finance (Not Investing)
Topic: Unexpected 401k Contribution
Replies: 9
Views: 931

Re: Unexpected 401k Contribution

The only limit an employer match could put you over is the 415(c) limit of combined EE & ER contributions, which is: the lesser of 100% of an employee’s compensation or $56,000 for 2019 ($55,000 for 2018 not including "catch-up" elective deferrals of $6,000 in 2015 - 2019 for employees age 50 or ol...
by lukestuckenhymer
Sun Oct 06, 2019 3:39 pm
Forum: Personal Finance (Not Investing)
Topic: Unexpected 401k Contribution
Replies: 9
Views: 931

Re: Unexpected 401k Contribution

The only limit an employer match could put you over is the 415(c) limit of combined EE & ER contributions, which is: the lesser of 100% of an employee’s compensation or $56,000 for 2019 ($55,000 for 2018 not including "catch-up" elective deferrals of $6,000 in 2015 - 2019 for employees age 50 or old...
by lukestuckenhymer
Wed Oct 02, 2019 3:43 pm
Forum: Investing - Theory, News & General
Topic: If you use Vanguard (Brokerage), why do you stay?
Replies: 58
Views: 6677

Re: If you use Vanguard (Brokerage), why do you stay?

Vanguard offers the most tax-efficient index funds, as well as the highest yielding money market funds. For taxable, they win. Fidelity has lower ERs, which I wouldn't be opposed to switching for tax deferred, but I have serious doubts their ZERO funds will best Vanguard's returns by much. I think t...
by lukestuckenhymer
Sat Sep 28, 2019 12:55 am
Forum: Personal Finance (Not Investing)
Topic: New Credit Card Search - 2 Front Runners?
Replies: 46
Views: 4611

Re: New Credit Card Search - 2 Front Runners?

About Discover and Chase Freedom (5% categories), its little work to keep on top of that. Fidelity and Citi double are good 2% cash back cards. Discover is another good one with 1.5% cash back with free international transactions. It was hard for me too, until I put a mini post-it note inside my wa...
by lukestuckenhymer
Fri Sep 27, 2019 6:00 pm
Forum: Personal Finance (Not Investing)
Topic: New Credit Card Search - 2 Front Runners?
Replies: 46
Views: 4611

Re: New Credit Card Search - 2 Front Runners?

Discover and Chase Freedom (5% categories) are very effective when it comes to gas, groceries, restaurants, online shopping. When was the last time Chase Freedom had a groceries quarter? Q2 2019. Both Discover and Chase have gas and groceries at least one quarter per year. https://thepointsguy.com/...
by lukestuckenhymer
Fri Sep 27, 2019 4:17 pm
Forum: Personal Finance (Not Investing)
Topic: New Credit Card Search - 2 Front Runners?
Replies: 46
Views: 4611

Re: New Credit Card Search - 2 Front Runners?

My main card is now Citi Double Cash (2% on everything), which made my old Chase Freedom Unlimited obsolete (1.5% on everything). Discover and Chase Freedom (5% categories) are very effective when it comes to gas, groceries, restaurants, online shopping. To round out the list is Capital One Savor On...
by lukestuckenhymer
Fri Sep 27, 2019 12:52 pm
Forum: Investing - Theory, News & General
Topic: Article - "How Great Is Dollar Cost Averaging? You (Still) Don't Know The Half Of It!"
Replies: 35
Views: 4450

Re: Article - "How Great Is Dollar Cost Averaging? You (Still) Don't Know The Half Of It!"

DCA'ing a consistent amount in each paycheck sure is convenient, but front-loading your 401k seems to be a more effective strategy to me (unless it deprives you of employer match).
by lukestuckenhymer
Thu Sep 26, 2019 2:46 pm
Forum: Investing - Theory, News & General
Topic: What is your AA, given your age? and, Why?
Replies: 246
Views: 29806

Re: What is your AA, given your age? and, Why?

32 y/o I was 100% equities (Total World Stock) up until this year, when I added a 10% fixed income allocation (70% VBTLX/30% VTABX). I know the expected return of 100% equities over the long term is always higher, but it can't hurt to add a small cushion. Without bonds, there's no rebalancing bonus ...
by lukestuckenhymer
Fri Sep 20, 2019 12:17 pm
Forum: Investing - Theory, News & General
Topic: Wealthfront now offers 2.51% APY
Replies: 84
Views: 11021

Re: Wealthfront now offers 2.51% APY

Email from Wealthfront today:
Because of the Fed’s decision to decrease interest rates, the interest rate on your Wealthfront Cash Account is changing from 2.32% APY to 2.07% APY beginning today.
Crashed back down to earth, as expected. VMMXX is at 2.06%.
by lukestuckenhymer
Wed Sep 04, 2019 1:31 pm
Forum: Investing - Theory, News & General
Topic: Fidelity: When Zero does not mean free
Replies: 108
Views: 11374

Re: Fidelity: When Zero does not mean free

Chasing four basis points is silly. Tracking error alone will put both Fidelity and Vanguard funds in a nearly identical position after 3, 5 or 10 years.

However, if you're buying in a taxable account, the choice is still very clear: Vanguard for tax efficiency.
by lukestuckenhymer
Wed Sep 04, 2019 11:55 am
Forum: Investing - Theory, News & General
Topic: Very bad day
Replies: 39
Views: 6319

Re: Very bad day

The RBD you're waiting for may actually end the day higher than today's close. Doesn't seem so bad now. Don't time the market.
by lukestuckenhymer
Tue Sep 03, 2019 12:01 pm
Forum: Investing - Theory, News & General
Topic: 3 fund people how are you feeling?
Replies: 112
Views: 13382

Re: 3 fund people how are you feeling?

ThankYouJack wrote:
Sun Sep 01, 2019 9:22 am
Feeling great...but feeling like I have one too many funds ;)
Just switch from Total US / Total International to Total World! :D
by lukestuckenhymer
Tue Aug 20, 2019 12:28 pm
Forum: Investing - Theory, News & General
Topic: Bonds - Throw it all on the table!!!
Replies: 372
Views: 64022

Re: Bonds - Throw it all on the table!!!

We have invested in Total Bond for a long time and it simply does the job. We sleep well at night. Would you still sleep well at night if interest rates go to 15% like they did in the 70s? Total bond would lose 90% of it's value and your dividends would be cut in half basically you'd be wiped out. ...
by lukestuckenhymer
Tue Aug 13, 2019 6:13 pm
Forum: Personal Finance (Not Investing)
Topic: Use Vanguard MM Prime for cash rather than local bank?
Replies: 69
Views: 7824

Re: Use Vanguard MM Prime for cash rather than local bank?

Vanguard prime money market has the highest yield I can find at a place that I trust putting my money. I might be able to find teaser rates 20 bps higher at some random online bank (Wealthfront, Robinhood, Redneck bank, et al), but I would never trust putting my money there in a million years.
by lukestuckenhymer
Tue Aug 13, 2019 12:45 pm
Forum: Investing - Theory, News & General
Topic: [Vanguard ongoing glitches, August 12-13, 2019]
Replies: 256
Views: 17203

Re: Another Day With Vanguard.Com Down

"Another day"? Was it down for the entire day? The site is working for me.
by lukestuckenhymer
Fri Aug 09, 2019 11:40 am
Forum: Personal Finance (Not Investing)
Topic: Pretty much broke --- what would you advise?
Replies: 85
Views: 9935

Re: Pretty much broke --- what would you advise?

Unfortunately it sounds like par for the course for most American retirees. My girlfriend's mother is in a similar situation with little savings, but she owns her home and has no debt. I would put the IRA in the highest yielding money market they can find. $2,600 a month in Social Security is very d...
by lukestuckenhymer
Wed Aug 07, 2019 11:31 am
Forum: Investing - Theory, News & General
Topic: Is Inflation killing my Money Market Account?
Replies: 30
Views: 3708

Re: Is Inflation killing my Money Market Account?

Until recently, Redneck Bank was at 2.5%. Now at 2.4%. If you have a substantial amount in that account, do the math and consider moving. Redneck's currently at 2.4%. Redneck bank only pays 2.4% up to $50,000, then they pay 0.5% for every dollar over that amount. So if you have a "substantial amoun...
by lukestuckenhymer
Thu Aug 01, 2019 12:07 pm
Forum: Investing - Theory, News & General
Topic: Are You Rich?
Replies: 31
Views: 3424

Re: Are You Rich?

Yes, but don't tell anybody.
by lukestuckenhymer
Mon Jul 29, 2019 1:30 pm
Forum: Investing - Theory, News & General
Topic: Wealthfront now offers 2.51% APY
Replies: 84
Views: 11021

Re: Wealthfront now offers 2.51% APY

Vanguard also has similar restrictions about moving money in and out of their MM funds. Try to move money from your checking account to VMMXX, then the next day try to move it to another bank account. They won't let you. You can only move it back to where it came from. I'd worry more about giving my...
by lukestuckenhymer
Thu Jul 11, 2019 7:00 pm
Forum: Investing - Theory, News & General
Topic: Wealthfront now offers 2.51% APY
Replies: 84
Views: 11021

Re: Wealthfront now offers 2.51% APY

In the non-FDIC world of money there's also a big difference between the players as well. Wealthfront has a $11.4 billion AUM and has not made a profit or been able to run at cost vs. the multi-trillion AUM of Schwab, Vanguard, and Fidelity who are also covering the cost of business operations succ...
by lukestuckenhymer
Mon Jul 01, 2019 1:22 pm
Forum: Investing - Theory, News & General
Topic: Vanguard Advertising Mutual Fund to ETF Conversion
Replies: 138
Views: 11819

Re: Vanguard Advertising Mutual Fund to ETF Conversion

If you convert all of your VTSAX into VTI like oldzey just did, can he “automatically invest” next month with less than the $3,000 minimum needed to open a position in VTSAX? If not, I don’t see how he can repeatedly buy back into VTSAX and do serial conversions (at least not in an IRA with a $6,00...
by lukestuckenhymer
Fri Jun 28, 2019 5:56 pm
Forum: Investing - Theory, News & General
Topic: Vanguard Money Market (VMMXX)
Replies: 19
Views: 2895

Re: Vanguard Money Market (VMMXX)

A small semantic detail: though it's interest for all intents and purposes, it's categorized as a "dividend" and you'll receive a 1099-DIV. Either way, it's taxed as ordinary income.
by lukestuckenhymer
Mon Jun 17, 2019 2:30 pm
Forum: Investing - Theory, News & General
Topic: Should I abandon the Total International Stock Index Fund for greener pastures?
Replies: 113
Views: 11420

Re: Should I abandon the Total International Stock Index Fund for greener pastures?

Green pastures don't always stay green.

Read Vanguard's white paper about international equities allocation:
https://www.vanguard.com/pdf/ISGGEB.pdf
by lukestuckenhymer
Thu Jun 13, 2019 4:50 pm
Forum: Investing - Theory, News & General
Topic: Small Cap Value heads Rejoice !!!
Replies: 339
Views: 39175

Re: Small Cap Value heads Rejoice !!!

I understand the logic behind investing in the U.S. stock market or World stock market, but what is the rationale behind tilting to SCV? Is there any rationale besides past performance?
by lukestuckenhymer
Wed Jun 05, 2019 7:32 pm
Forum: Investing - Theory, News & General
Topic: Difference between Bank Savings Account vs. Money Market
Replies: 13
Views: 1793

Re: Difference between Bank Savings Account vs. Money Market

For Ally, the difference between their money market and their savings account is the ability to write checks and get an ATM card (Savings has neither).
by lukestuckenhymer
Fri May 24, 2019 12:01 pm
Forum: Investing - Theory, News & General
Topic: WSJ Article: Think Before You Fish for Bargains in Chinese Stocks
Replies: 58
Views: 5345

Re: WSJ Article: Think Before You Fish for Bargains in Chinese Stocks

nexesn wrote:
Fri May 24, 2019 11:44 am
Over the past 10 years, a $10,000 investment in the MSCI China stock index would have grown to just under $19,600, while the same amount in the S&P 500 would have turned into nearly $39,700, according to FactSet.[/I]
Ah yes, because the past 10 years will be exactly like the next 10 years.
by lukestuckenhymer
Thu May 23, 2019 12:59 pm
Forum: Investing - Theory, News & General
Topic: Is the housing market starting to collapse?
Replies: 122
Views: 13347

Re: Is the housing market starting to collapse?

Sold my house one year ago in May 2018. Just this month, my same buyer sold it again for 4.8% above the price he bought it from me. I don't see a collapse. The only winners here are the agents, lawyers, and lenders. I wasn't saying the guy was smart... He was young and his engagement apparently bro...
by lukestuckenhymer
Thu May 23, 2019 12:54 pm
Forum: Investing - Theory, News & General
Topic: Is the housing market starting to collapse?
Replies: 122
Views: 13347

Re: Is the housing market starting to collapse?

Sold my house one year ago in May 2018 (suburban Chicago). Just this month, my same buyer sold it again for 4.8% above the price he bought it from me. I don't see a collapse.
by lukestuckenhymer
Thu May 23, 2019 11:18 am
Forum: Investing - Theory, News & General
Topic: Age in Bond Vs Target date funds
Replies: 9
Views: 468

Re: Age in Bond Vs Target date funds

There is no set methodology. You can see their glide path here:
https://www.bogleheads.org/wiki/Vanguar ... ment_funds

Age in bonds is a bit too conservative for most people. Some people modify it to be Age -10 or Age -20 in bonds.
by lukestuckenhymer
Fri May 17, 2019 4:28 pm
Forum: Investing - Theory, News & General
Topic: Will ETFs Replace Traditional Funds
Replies: 87
Views: 5250

Re: Will ETFs Replace Traditional Funds

I rather like my fractional shares... The only way to entice me to switch would be if I could buy an ETF (assuming it's a share class of a identical mutual fund), and then whatever money is left over could be held in the mutual fund (with no minimum) until that portion reached the price of one share...
by lukestuckenhymer
Fri May 10, 2019 3:55 pm
Forum: Investing - Theory, News & General
Topic: 17 of our 18 equity-focused American Funds have delivered index-beating lifetime results.
Replies: 34
Views: 3240

Re: 17 of our 18 equity-focused American Funds have delivered index-beating lifetime results.

Very important small print:
If a sales charge had been deducted, results would have been lower.
Do a search for other threads about American Funds. Very high loads, high ERs. Not recommended in general.
by lukestuckenhymer
Fri May 10, 2019 1:55 pm
Forum: Investing - Theory, News & General
Topic: Any conservative young investors?
Replies: 75
Views: 8246

Re: Any conservative young investors?

I'm 31. I'm 100% equities aside from a decent emergency fund and it's working for me at this point. I didn't have any investments at the time of the 2008-09 crash, but I've read enough to know that I'm at risk for a 45-50% drawdown at any given moment. It will hurt, but I'm ready for it and I'll tak...
by lukestuckenhymer
Tue May 07, 2019 12:55 pm
Forum: Investing - Theory, News & General
Topic: Equity funds for taxable accounts
Replies: 23
Views: 3014

Re: Equity funds for taxable accounts

Bogleheads....Is a target date index fund good for a taxable account? I have FXIXF (Fidelity Freedom Index fund 2030). I was going for the ultimate in simplicity, but am wondering if I hurt myself taxwise. I wouldn't recommend it for a few reasons. First of all, Fidelity Freedom funds have relative...