Search found 281 matches

by catalina355
Thu Oct 10, 2019 12:00 pm
Forum: Personal Investments
Topic: Why large cap index fund is more tax efficient than Small cap index fund ?
Replies: 12
Views: 1554

Re: Why large cap index fund is more tax efficient than Small cap index fund ?

You can find QDI data for 2018 here: https://personal.vanguard.com/us/insights/taxcenter/yearend-qualified-dividend-income-2018 You can also lookup prior years. iShares data is here: https://www.ishares.com/us/literature/tax-information/2018-qdi-summary-icrmh0119u-711553.pdf Thank you. I will run t...
by catalina355
Thu Oct 10, 2019 7:08 am
Forum: Personal Investments
Topic: Why large cap index fund is more tax efficient than Small cap index fund ?
Replies: 12
Views: 1554

Re: Why large cap index fund is more tax efficient than Small cap index fund ?

The Vanguard Small-cap index fund is the actual market completion index fund for the Vanguard Large Cap Index fund. If you want to hold both in a taxable account, just hold the total market index fund. Otherwise when stocks move between the two indices tour portfolio will be selling the stock in on...
by catalina355
Wed Oct 09, 2019 7:13 pm
Forum: Personal Investments
Topic: Why large cap index fund is more tax efficient than Small cap index fund ?
Replies: 12
Views: 1554

Re: Why large cap index fund is more tax efficient than Small cap index fund ?

The large cap index does not have as many REITs (if any), which distribute unqualified dividends. Total US stock market contains REITs but sometimes achieves 100% QDI because if it is greater than 95% it can be rounded up to 100%. Holding small-caps as part of a market index fund is thus more tax-e...
by catalina355
Wed Oct 09, 2019 2:27 pm
Forum: Personal Investments
Topic: Why large cap index fund is more tax efficient than Small cap index fund ?
Replies: 12
Views: 1554

Re: Why large cap index fund is more tax efficient than Small cap index fund ?

As you point out, there are two differences, one that works in favor of VFIAX (100% QDI) and one that favors VSMAX (lower dividend yield). Which one is more significant depends on the exact numbers as well as your tax rates. For example, if you are in the 12% tax bracket and live in a no tax state,...
by catalina355
Mon Oct 07, 2019 7:25 am
Forum: Personal Investments
Topic: Gift of fund shares and subsequent cash payment between family members
Replies: 9
Views: 842

Re: Gift of fund shares and subsequent cash payment between family members

Sure are. It’s a taxable sale. Gill I'm trying to understand since this came up in a discussion. Is it the gift itself that creates the taxable sale? No, the gift alone doesn’t create a sale. It’s the appearance of a quid pro quo with the cash transfer deemed consideration for the stock transfer. G...
by catalina355
Sun Oct 06, 2019 5:48 pm
Forum: Personal Investments
Topic: Gift of fund shares and subsequent cash payment between family members
Replies: 9
Views: 842

Re: Gift of fund shares and subsequent cash payment between family members

Wiggums wrote:
Sun Oct 06, 2019 5:01 pm
this article describes potential issues.

https://www.investmentnews.com/article/ ... ting-stock
Thanks. I was aware of some of these issues but good to see it all in one article.
by catalina355
Sun Oct 06, 2019 5:48 pm
Forum: Personal Investments
Topic: Gift of fund shares and subsequent cash payment between family members
Replies: 9
Views: 842

Re: Gift of fund shares and subsequent cash payment between family members

Gill wrote:
Sun Oct 06, 2019 4:58 pm
Sure are. It’s a taxable sale.

Gill
I'm trying to understand since this came up in a discussion. Is it the gift itself that creates the taxable sale?
by catalina355
Sun Oct 06, 2019 4:54 pm
Forum: Personal Investments
Topic: Gift of fund shares and subsequent cash payment between family members
Replies: 9
Views: 842

Gift of fund shares and subsequent cash payment between family members

From previous threads I understand that there are no legal or IRS tax issues if a family member provides a gift of appreciated fund shares to another family member, so long as the recipient tracks the cost basis and pays any capital gains taxes owed in the future. My question: Are there legal or tax...
by catalina355
Fri Oct 04, 2019 3:13 pm
Forum: Personal Consumer Issues
Topic: Recommendation for Carry on Luggage
Replies: 64
Views: 4930

Re: Recommendation for Carry on Luggage

I have been looking at the Aeronaut 30L. What do you think of the new Synik 30 as an alternative? https://www.tombihn.com/collections/backpacks/products/synik-30?variant=15334842400831 I would be interested to hear more about your experiences traveling with the Aeronaut and the Packing Cube Backpac...
by catalina355
Fri Oct 04, 2019 2:17 pm
Forum: Personal Consumer Issues
Topic: Recommendation for Carry on Luggage
Replies: 64
Views: 4930

Re: Recommendation for Carry on Luggage

I've been very pleased with eBags ( https://www.ebags.com ), especially the TLS Mother Lode Weekender Convertible backpack and the TLS 22" Expandable Wheeled Carry-On. I had earlier tried the Rick Steves Classic Back Door Bag, but found the quality and sturdiness to be lacking. I second this. If yo...
by catalina355
Fri Oct 04, 2019 1:26 pm
Forum: Personal Consumer Issues
Topic: Recommendation for Carry on Luggage
Replies: 64
Views: 4930

Re: Recommendation for Carry on Luggage

A bit on the pricey side, but they are bomb-proof, incredibly well-designed, and made in the USA: Tom Bihn (https://www.tombihn.com/). The Aeronaut 30 would be perfect for you. I used its larger sibling (Aeronaut 45) for 2 weeks in Europe. While not a roller bag, it can be carried like a briefcase,...
by catalina355
Thu Oct 03, 2019 10:34 am
Forum: Personal Investments
Topic: Retirees - do you hold extra cash for a bear market?
Replies: 93
Views: 10426

Re: Retirees - do you hold extra cash for a bear market?

Why would it be “mental accounting” to hold enough cash to get you through a stock market decline without needing to sell stocks? Sure, reasonable people can argue whether it’s a good idea. But “mental accounting?” Because maintaining a fixed asset allocation results in selling from equity when equ...
by catalina355
Wed Oct 02, 2019 12:09 pm
Forum: Personal Investments
Topic: Retirees - do you hold extra cash for a bear market?
Replies: 93
Views: 10426

Re: Retirees - do you hold extra cash for a bear market?

Why would it be “mental accounting” to hold enough cash to get you through a stock market decline without needing to sell stocks? Sure, reasonable people can argue whether it’s a good idea. But “mental accounting?” Because maintaining a fixed asset allocation results in selling from equity when equ...
by catalina355
Wed Oct 02, 2019 7:59 am
Forum: Personal Investments
Topic: Retirees - do you hold extra cash for a bear market?
Replies: 93
Views: 10426

Re: Retirees - do you hold extra cash for a bear market?

How can the results be the same if the cash is external to the portfolio and not available for buying stocks in down years? Here's the Estrada paper: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3274499 If you take a look at the paper you will see: The three bucket strategies consist of two ...
by catalina355
Tue Oct 01, 2019 7:51 pm
Forum: Personal Investments
Topic: Retirees - do you hold extra cash for a bear market?
Replies: 93
Views: 10426

Re: Retirees - do you hold extra cash for a bear market?

The cash may not be available however the bonds are available for rebalancing and the results should be the same as a portfolio with some bonds of zero duration. Do you have a reference to Estrada's study. How can the results be the same if the cash is external to the portfolio and not available fo...
by catalina355
Tue Oct 01, 2019 3:59 pm
Forum: Personal Finance (Not Investing)
Topic: Luxury condo
Replies: 56
Views: 5222

Re: Luxury condo

That HOA assessment would stop me. What are you getting for that much money? Try to get association financial data for the last few years to try to judge how the board is managing the associations money. Sometimes a management company runs wild with the association's checkbook. Ralph If the condo i...
by catalina355
Tue Oct 01, 2019 3:44 pm
Forum: Personal Investments
Topic: Retirees - do you hold extra cash for a bear market?
Replies: 93
Views: 10426

Re: Retirees - do you hold extra cash for a bear market?

Estrada showed, in his portfolio studies, that a retirement portfolio actually becomes less productive when you remove cash/bonds from the general rebalancing process. The optimal portfolio doesn't include a lot of external cash. It still may fail(!), but will last longer than the portfolio and ext...
by catalina355
Tue Oct 01, 2019 7:54 am
Forum: Personal Investments
Topic: Retirees - do you hold extra cash for a bear market?
Replies: 93
Views: 10426

Re: Retirees - do you hold extra cash for a bear market?

From the context of the OP, I am assuming that you mean holding cash to keep from selling equities when they are low and not the idea of "dry powder" to purchase equities when they are low. I am getting ready to start month 10 of my retirement and DW is still working (until the end of this year), s...
by catalina355
Mon Sep 30, 2019 6:28 pm
Forum: Personal Investments
Topic: Retirees - do you hold extra cash for a bear market?
Replies: 93
Views: 10426

Re: Retirees - do you hold extra cash for a bear market?

From the context of the OP, I am assuming that you mean holding cash to keep from selling equities when they are low and not the idea of "dry powder" to purchase equities when they are low. I am getting ready to start month 10 of my retirement and DW is still working (until the end of this year), s...
by catalina355
Sun Sep 29, 2019 3:25 pm
Forum: Personal Investments
Topic: VTIAX International fund - should I give up on it?
Replies: 297
Views: 32343

Re: VTIAX International fund - should I give up on it?

On this forum, people sometimes justify a portfolio change saying that they are fixing a mistake or improving the portfolio because they know more today. But strangely, most of those posts are about buying an asset that has done well lately, or selling one which has done poorly. Not strange at all....
by catalina355
Sun Sep 29, 2019 12:19 pm
Forum: Personal Investments
Topic: How do early retirees survive bad markets?
Replies: 26
Views: 5216

Re: How do early retirees survive bad markets?

rossington wrote:
Sun Sep 29, 2019 12:05 pm
mpsz wrote:
Sat Sep 28, 2019 10:11 pm

You can sell $10,000 in stocks to fund the $10,000 withdrawal from your taxable account.
But, this is a taxable event...correct?
Yes, if you have capital gains or losses which is likely.
by catalina355
Tue Sep 24, 2019 9:16 pm
Forum: Personal Investments
Topic: Looking for a More Tax-Efficient Intl Index Fund than Vanguard Total International (VTIAX)?
Replies: 34
Views: 3992

Re: Looking for a More Tax-Efficient Intl Index Fund than Vanguard Total International (VTIAX)?

Given that: Developed Markets Index Fund 81% FTSE All-World ex-US Index Fund 80% Total International Stock Index Fund 75% iShares Core MSCI EAFE ETF 92% Is it really going to make a significant difference to one's tax situation or ability to do Roth conversions? It is not a dramatic difference. I w...
by catalina355
Tue Sep 24, 2019 7:08 am
Forum: Personal Investments
Topic: Looking for a More Tax-Efficient Intl Index Fund than Vanguard Total International (VTIAX)?
Replies: 34
Views: 3992

Re: Looking for a More Tax-Efficient Intl Index Fund than Vanguard Total International (VTIAX)?

The VG Total Intl Stock fund (VTIAX) has a pretty sizable chunk of non-qualified dividends (~25%) that get taxed at one’s marginal tax rate (when held in a taxable investment account). Compare this with the ~100% Qualified Dividend of the VG Total US Stock fund (VTSAX). While I understand it provid...
by catalina355
Tue Sep 24, 2019 6:43 am
Forum: Personal Investments
Topic: Looking for a More Tax-Efficient Intl Index Fund than Vanguard Total International (VTIAX)?
Replies: 34
Views: 3992

Re: Looking for a More Tax-Efficient Intl Index Fund than Vanguard Total International (VTIAX)?

Tax efficiency rankings: (IEFA, IDEV) > SCHF > IXUS > VEA > VXUS And that SCHF is more tax-efficient than IXUS is debatable. Can’t you show any numbers? You’ve obviously gone to the trouble to look up the various tax-efficiency parameters of all these funds (I mean, I assume you’re not just making ...
by catalina355
Mon Sep 23, 2019 6:35 pm
Forum: Personal Investments
Topic: VTIAX International fund - should I give up on it?
Replies: 297
Views: 32343

Re: VTIAX International fund - should I give up on it?

bluquark wrote:
Mon Sep 23, 2019 6:31 pm
Also, a diversified portfolio can be expected to have lower volatility as well as slightly higher returns. So the market lows that are coming someday, are likely to test me less severely.
That was not the experience in 2008/2009.
by catalina355
Mon Sep 23, 2019 5:09 pm
Forum: Personal Investments
Topic: VTIAX International fund - should I give up on it?
Replies: 297
Views: 32343

Re: VTIAX International fund - should I give up on it?

Can you clarify for me what advantage has been obtained in the last 50 years from a US investor holding the EAFE index? For a US investor, a globally diversified portfolio outperformed a xenophobic portfolio in 80% of the worst 30 year periods for US stocks and had higher retirement income during t...
by catalina355
Mon Sep 23, 2019 8:23 am
Forum: Personal Investments
Topic: VTIAX International fund - should I give up on it?
Replies: 297
Views: 32343

Re: VTIAX International fund - should I give up on it?

I'm out of VTIAX, finally, as of last week. For years I've been telling myself to wait until the dollar weakens again, which it will, eventually. But if that doesn't happen soon, I'm probably better off pulling the plug right now. To each his own - I just can't afford the long term drag on my portf...
by catalina355
Sun Sep 22, 2019 8:21 am
Forum: Personal Finance (Not Investing)
Topic: Help me prepare to help mother-in-law
Replies: 53
Views: 4979

Re: Help me prepare to help mother-in-law

Since she is over 65, she should apply for Medicare Part A, which covers hospitalization. There is no cost & it is best to get it out of the way. When the time comes, she can apply for Part B (doctor visits, etc) which will be about $135/month) & Part D (medication) which I believe is about $35/mon...
by catalina355
Fri Sep 20, 2019 8:25 pm
Forum: Personal Finance (Not Investing)
Topic: Dental Insurance for Retirees
Replies: 62
Views: 5281

Re: Dental Insurance for Retirees

I wanted to clarify that the OP was referring to Medicare Health plans and not original Medicare which does not provide dental coverage. I'm familiar with Medigap plans and Medicare Advantage plans. What is a "Medicare Health Plan?" Medicare Health Plan is the CMS term for plans offered by private ...
by catalina355
Fri Sep 20, 2019 5:53 pm
Forum: Personal Finance (Not Investing)
Topic: Dental Insurance for Retirees
Replies: 62
Views: 5281

Re: Dental Insurance for Retirees

This is my first year of retirement. I've used my two free Medicare cleanings I'm entitled to, and now need to choose some sort of plan. Any suggestions? I've been looking at dental insurance and then the flat rate, discounted plans. What has worked best for you? I'm in NYC and my regular dentist o...
by catalina355
Fri Sep 20, 2019 4:24 pm
Forum: Personal Investments
Topic: Withdrawal Approach
Replies: 29
Views: 2572

Re: Withdrawal Approach

I pretty much follow the same scheme as @livesoft with the further advantage of having some non-portfolio income. On average cash as it comes and goes stays at a level of about 2% of assets. I don't work at making it less or at making it more. I take RMDs at the end of the year so tax withholding c...
by catalina355
Fri Sep 20, 2019 12:28 pm
Forum: Personal Finance (Not Investing)
Topic: Dental Insurance for Retirees
Replies: 62
Views: 5281

Re: Dental Insurance for Retirees

This is my first year of retirement. I've used my two free Medicare cleanings I'm entitled to, and now need to choose some sort of plan. Any suggestions? I've been looking at dental insurance and then the flat rate, discounted plans. What has worked best for you? I'm in NYC and my regular dentist o...
by catalina355
Tue Sep 17, 2019 6:50 pm
Forum: Investing - Theory, News & General
Topic: Is the 60/40 portfolio allocation strategy being killed?
Replies: 142
Views: 17103

Re: Is the 60/40 portfolio allocation strategy being killed?

Asness has alluded to something along the lines of a traditional 60/40 strategy likely running into trouble in the future. Not "killed", but certainly hobbled. Stocks sometimes get high valuations. Bonds sometimes get high valuations. Seldom do they happen together (I think he said the current cond...
by catalina355
Tue Sep 17, 2019 4:10 pm
Forum: Investing - Theory, News & General
Topic: Is the 60/40 portfolio allocation strategy being killed?
Replies: 142
Views: 17103

Re: Is the 60/40 portfolio allocation strategy being killed?

Asness has alluded to something along the lines of a traditional 60/40 strategy likely running into trouble in the future. Not "killed", but certainly hobbled. Stocks sometimes get high valuations. Bonds sometimes get high valuations. Seldom do they happen together (I think he said the current cond...
by catalina355
Mon Sep 16, 2019 9:53 pm
Forum: Investing - Theory, News & General
Topic: Avoiding fluctuations in BND (total bond) when withdrawing
Replies: 31
Views: 2447

Re: Avoiding fluctuations in BND (total bond) when withdrawing

Though I rebalanced once a year pre-retirement, it seems silly to take out a years worth of expenses to keep doing that. I try to take out money from investments quarterly and do so according to my desired AA. In the end, it probably makes little difference because if you are taking out roughly 4% ...
by catalina355
Mon Sep 16, 2019 9:39 pm
Forum: Investing - Theory, News & General
Topic: Avoiding fluctuations in BND (total bond) when withdrawing
Replies: 31
Views: 2447

Re: Avoiding fluctuations in BND (total bond) when withdrawing

My mental model is this: - Your fixed income portfolio takes, as a whole, a certain amount of term factor exposure, which is usually quantified with the single number "duration". - Since your portfolio is made up of fully liquid assets which you aim to rebalance to AA on a regular basis, withdrawal...
by catalina355
Mon Sep 16, 2019 6:05 pm
Forum: Investing - Theory, News & General
Topic: Avoiding fluctuations in BND (total bond) when withdrawing
Replies: 31
Views: 2447

Re: Avoiding fluctuations in BND (total bond) when withdrawing

My mental model is this: - Your fixed income portfolio takes, as a whole, a certain amount of term factor exposure, which is usually quantified with the single number "duration". - Since your portfolio is made up of fully liquid assets which you aim to rebalance to AA on a regular basis, withdrawal...
by catalina355
Mon Sep 16, 2019 5:34 pm
Forum: Investing - Theory, News & General
Topic: Avoiding fluctuations in BND (total bond) when withdrawing
Replies: 31
Views: 2447

Re: Avoiding fluctuations in BND (total bond) when withdrawing

The only thing the buckets strategy does is have you sell investments earlier than you would without it. With an adequate portfolio and a long-ish time horizon it can be expected to reduce your return. It doesn't help with sequence-of-returns any better than simply reducing your stock allocation to...
by catalina355
Mon Sep 16, 2019 5:29 pm
Forum: Investing - Theory, News & General
Topic: Avoiding fluctuations in BND (total bond) when withdrawing
Replies: 31
Views: 2447

Re: Avoiding fluctuations in BND (total bond) when withdrawing

My mental model is this: - Your fixed income portfolio takes, as a whole, a certain amount of term factor exposure, which is usually quantified with the single number "duration". - Since your portfolio is made up of fully liquid assets which you aim to rebalance to AA on a regular basis, withdrawal...
by catalina355
Fri Sep 13, 2019 8:45 pm
Forum: Investing - Theory, News & General
Topic: Avoiding fluctuations in BND (total bond) when withdrawing
Replies: 31
Views: 2447

Re: Avoiding fluctuations in BND (total bond) when withdrawing

The only thing the buckets strategy does is have you sell investments earlier than you would without it. With an adequate portfolio and a long-ish time horizon it can be expected to reduce your return. It doesn't help with sequence-of-returns any better than simply reducing your stock allocation to...
by catalina355
Fri Sep 13, 2019 8:45 pm
Forum: Investing - Theory, News & General
Topic: Avoiding fluctuations in BND (total bond) when withdrawing
Replies: 31
Views: 2447

Re: Avoiding fluctuations in BND (total bond) when withdrawing

Isn’t the yield of Prime MM higher than short bond and about the same as short corporate? How much are you really giving up by having an extra $10k-$20k in a mm? So, I looked further into this. I am at TDA (transferred from Vanguard in the last year or so). The default cash sweep pays virtually not...
by catalina355
Fri Sep 13, 2019 4:03 pm
Forum: Personal Consumer Issues
Topic: Laptop for aging parents
Replies: 43
Views: 2940

Re: Laptop for aging parents

Do you need a laptop? Old people like big screens, good ergonomics and special keyboards, and it's not like they are the type to bring a laptop to a cafe or something. All these favor desktop all in one computers over laptops, especially if you have a budget. How do you know his parents don’t hang ...
by catalina355
Wed Sep 11, 2019 3:03 pm
Forum: Personal Investments
Topic: Hold Physical Cash if Rates Go Negative?
Replies: 39
Views: 5145

Re: Hold Physical Cash if Rates Go Negative?

OP, If you are diversified, aka, always holding some amount of cash and gold, why do you need to care and worry about what happened next? 1) Cash 2) Gold 3) Fixed-rate mortgage 4) Stock 5) Bond Diversified and be prepared. Then, it won't matter what happened next. KlangFool But which bonds? ST and ...
by catalina355
Wed Sep 11, 2019 2:16 pm
Forum: Personal Investments
Topic: Hold Physical Cash if Rates Go Negative?
Replies: 39
Views: 5145

Re: Hold Physical Cash if Rates Go Negative?

OP, If you are diversified, aka, always holding some amount of cash and gold, why do you need to care and worry about what happened next? 1) Cash 2) Gold 3) Fixed-rate mortgage 4) Stock 5) Bond Diversified and be prepared. Then, it won't matter what happened next. KlangFool But which bonds? ST and ...
by catalina355
Fri Sep 06, 2019 2:57 pm
Forum: Investing - Theory, News & General
Topic: Mortgage Sequence of Returns Risk Example.
Replies: 53
Views: 3264

Re: Mortgage Sequence of Returns Risk Example.

If anyone can see a way to improve my example, focusing on the first year or two, I would sure like to hear any suggestions. Then, instead of putting the $100k into an equity account, put it into a ST bond fund (duration of ~2 years). That way your time frames are consistent; otherwise, you are com...
by catalina355
Wed Aug 28, 2019 2:22 pm
Forum: Investing - Theory, News & General
Topic: Swensen Endowment Portfolio Book
Replies: 17
Views: 1148

Re: Swensen Endowment Portfolio Book

Listened to David Swensen's Portfolio for Endowments book. Interesting in that: 1. He asserted 20% investment in total market outside US provides a currency hedge against the US dollar. Further, he said any more than 20% actually increases currency risk. I'll take on faith that what he says about i...
by catalina355
Wed Aug 28, 2019 12:52 pm
Forum: Investing - Theory, News & General
Topic: Swensen Endowment Portfolio Book
Replies: 17
Views: 1148

Re: Swensen Endowment Portfolio Book

Listened to David Swensen's Portfolio for Endowments book. Interesting in that: 1. He asserted 20% investment in total market outside US provides a currency hedge against the US dollar. Further, he said any more than 20% actually increases currency risk. I'll take on faith that what he says about i...
by catalina355
Sat Aug 24, 2019 4:25 pm
Forum: Investing - Theory, News & General
Topic: "The Best Diversifiers For Your Equity Portfolio"
Replies: 126
Views: 11378

Re: "The Best Diversifiers For Your Equity Portfolio"

I'm not trying to make any kind of distinction between diversification and variance but just asking about the the price of long T's going up significantly more than Intermediate T's during a stock market crash. Okay. This thing you just said ("the price of long T's going up significantly more than ...
by catalina355
Fri Aug 23, 2019 7:19 am
Forum: Investing - Theory, News & General
Topic: "The Best Diversifiers For Your Equity Portfolio"
Replies: 126
Views: 11378

Re: "The Best Diversifiers For Your Equity Portfolio"

Thank you once again, Taylor. It's old advice , and still relevant. Sometimes we trip ourselves up trying to find the "best" thing to solve a perceived need, instead of choosing simplicity. From the article: "What surprised me in this latest data run , Susan, was that we didn't have to venture into...
by catalina355
Thu Aug 22, 2019 11:46 am
Forum: Personal Investments
Topic: Anyone else more aggressive in retirement than required?
Replies: 52
Views: 4701

Re: Anyone else more aggressive in retirement than required?

I feel there is some general misconception around anyway: Trinity study and the efficiency frontier suggests that an asset allocation of 80/20 stocks to bonds is the most 'efficient' investment over a long period of time (you can argue with me about the exact number here). So that number makes the ...