Bogleheads.org

lifeisinmirrors

Implicit in the fund's strategy is that in a correction, low beta stocks would outperform. But high beta stocks outperformed in the March correction, and also in the subsequent recovery. I looked at this fund numerous times in the last few years and am glad I didn't buy it.

lifeisinmirrors

If people were originally hired to work in an office, I don't see why they find it unreasonable for the company to expect them to return to the office after the pandemic is over. Probably because there will be many more options of other employers who do not demand employees being in the office. Pri...

lifeisinmirrors

If people were originally hired to work in an office, I don't see why they find it unreasonable for the company to expect them to return to the office after the pandemic is over. Everybody complaining about their commute either got a job knowing how far it is from home, or got a home knowing how far...

lifeisinmirrors

Warren Buffett has commented on this topic often. To paraphrase, his opinion is that it's gotten increasingly difficult to find companies trading below their actual value. Early in his career he bought some companies at really low valuations, like they had no growth but were trading at two or three ...

lifeisinmirrors

Somewhat confused by this paragraph: Master limited partnerships (MLPs) in an IRA. Vanguard Fiduciary Trust Company (VFTC), the custodian for IRAs held at Vanguard Brokerage Services (VBS), is responsible for IRS Form 990-T tax filings for MLPs. VFTC will begin charging a $300 fee per account for t...

lifeisinmirrors

I really doubt there's much demand for this fund. No one has ever said to me that they would like to cap the potential gain of their stock portfolio without decreasing their potential losses.

Incidentally, I'm pretty sure they actually purchased a $269 call option on SPY, not $2.69.

lifeisinmirrors

In my opinion, the OP has a solid plan and good reasons for it. Any given portfolio of Vanguard ETFs will perform exactly the same, assuming one chooses a reputable zero-fee brokerage house. Personally I choose the big brokers because on the miniscule chance that anything did go wrong which resulted...

lifeisinmirrors

In my opinion, the REIT tax structure is a bizarre thing to index. Companies in the real estate industry choose whether or not to operate with this tax structure based on the best advice of their tax and managerial accountants. A REIT index fund essentially substitutes its own judgment that every co...

lifeisinmirrors

"Starter home" is just a marketing term designed to bring more business to the Realtor in a few years. Kids aren't harmed by growing up in a 1200 square foot post-war home, or by attending a non-bougie high school. They are harmed by a lack of time with their parents, or by growing up with...

lifeisinmirrors

Unfortunately I've found Portfolio Watch to be inaccurate for years. It classifies the entire stock portion of Wellesley Income as U.S. stocks, which is not the case. I don't hold Wellington anymore, but it used to make the same error for Wellington as well.

lifeisinmirrors

The regular Wellington fund already is allowed to hold international stocks, which make up about 1/5 of its stock holdings. I don't see any need for more than that.

lifeisinmirrors

I think ESG is basically just a marketing term. I don't think it makes a lot of sense to outsource my ethics to Vanguard (who seems to outsource their own ethics to a Bloomberg index). I also don't see any reason to choose a corporate bond fund instead of a total bond market fund.

lifeisinmirrors

I think Bitcoins are lost or stolen so frequently that they're not really suitable as a long-term investment. This has happened to plenty of people or companies that are a lot more sophisticated than I am in this area.

lifeisinmirrors

Only Apple, Microsoft, and Apple are more than roughly 2% of the index. If one of those companies went out of business tomorrow, there is still demand for their product categories. There would be a short-term hit to the market, but other companies would fill that demand over time and see their perfo...

lifeisinmirrors

My memory is that many companies increased the stock allocations in their target date funds between 7-10 years ago to juice their returns. Vanguard followed suit so their returns would be competitive. I have 20% more bonds than the Vanguard target date fund for my age, but I think the target date fu...

lifeisinmirrors

I think a 10% raise isn't enough for either role. It is probably a pay cut if you broke it down to an hourly wage.

lifeisinmirrors

ResearchMed wrote: ↑Fri Sep 04, 2020 11:08 pm Yup, I've said "er" like stalling (er, um) and then "iss uh", emphasis on second syllable.

No one ever misunderstood what I was referring to, so that must be at least okay.

RM

I had a professor who wrote a book on ERISA, and he pronounced it that way in class.

lifeisinmirrors

If you do choose a condo make sure you spend some time reviewing their association meeting notes before you buy. You can learn a lot about how they run their condo by those notes. Agree, and the financial statements too. If they're spending more than they're taking in, HOA dues are about to go up.

lifeisinmirrors

An inverse fund shouldn't be a long-term holding unless the expected return of stocks is negative. If you want less money in tech, consider Vanguard Minimum Volatility or Vanguard Utilities Index.

lifeisinmirrors

These are probably the worst choices I've seen in a 401(k). Since you have a relationship where the employer would listen, I would definitely bring it up. I think the expenses are high enough to at least make it questionable whether the employer has fulfilled its fiduciary duty. Certainly I wouldn't...

lifeisinmirrors

An S&P 500 index fund is already so tax-efficient that there's no benefit to this strategy. I looked up information on Vanguard's site on pre- and post-tax returns of VFIAX (Vanguard 500 Index Fund). Since 2000, the returns before taxes are only 42 basis points higher than the returns after taxe...

lifeisinmirrors

You can move the Fidelity 401(k) into a Fidelity IRA online. Once it's in a Fidelity IRA, another broker can pull the money using the ACATS system (no paper check needed). In the last few weeks I moved money from a former employer's Fidelity 401(k) to my Vanguard Roth IRA. It took 3 transfers, all i...

lifeisinmirrors

The CPA is wrong, but I would think if he's done years of good work, I might not fire him over one mistake.

lifeisinmirrors

If they really made those moves, I'd say that has worked out well and his broker earned the high fees.

100% stocks also isn't crazy for someone with $10 million. They could afford to lose half of it and still be wealthy.

lifeisinmirrors

So much uncertainty has been introduced that it seems rational for the market to be down as much as it is. In terms of its effects on everyday life, the impact of coronavirus is already greater than I saw during the global financial crisis. I don't know how long the economy can keep going with ever...

lifeisinmirrors

So much uncertainty has been introduced that it seems rational for the market to be down as much as it is. In terms of its effects on everyday life, the impact of coronavirus is already greater than I saw during the global financial crisis. I don't know how long the economy can keep going with ever...

lifeisinmirrors

So much uncertainty has been introduced that it seems rational for the market to be down as much as it is. In terms of its effects on everyday life, the impact of coronavirus is already greater than I saw during the global financial crisis. I don't know how long the economy can keep going with every...

lifeisinmirrors

You would have to define good, but the general sentiment here is that Wellesley is a good fund. What is your objective in buying the fund? Wellesley could be a very bad investment if not suited to your purpose. I am 80 a widow and in good health. I made a mistake and wasn't thinking about taxes whe...

lifeisinmirrors

There is some uninvested cash in my underperforming (I assume due to un-investing) Roth Ira. I am looking at Delta, ATT & Paychex. At this point I only want to buy dividend paying stocks. Trying to earn enough in dividends so that I won't have to touch the principal right off when I hopefully r...

lifeisinmirrors

lakpr wrote: ↑Tue Mar 10, 2020 4:14 pm $73k gross income - $24.8k standard deduction - $10k IRA contributions = $38.2 taxable income, so you would qualify.

With those medical expenses, they should itemize deductions. Adding in the state and local taxes, they probably can make Roth contributions and still get the saver's credit.

lifeisinmirrors

In your post two weeks ago you said: "AA 75/25 I tried the 100% equity thing but i couldn't sleep at nights. 75/25 seems like my comfort zone" At that time you were considering a 50/50 allocation, now you are considering 100/0. Making frequent changes to your asset allocation will not serv...

lifeisinmirrors

Any company could perform poorly. Microsoft is probably the safest of the three, judging by its AAA cresit earing.

lifeisinmirrors

The OP is 24 years old, and deferring only $6k to $7k per year. Even at 15% bonds, that is just $1k per year. That is going to make a big difference vs 100% stocks??? Fair enough, if the OP wanted to hold 100% stocks, that's a defensible decision. But they should determine the asset allocation firs...

lifeisinmirrors

The 401(k) bond choices aren't great, but that's a poor reason to hold 100% stocks. I would much rather recommend holding bonds in a Roth IRA than recommend being 100% in stocks.

lifeisinmirrors

It sounds like a mortgage would just get you more house than you need. There will be various things you need to or want to buy for the house, and the lack of a mortgage gives you enough cash flow for that. I think there's more flexibility in not having a mortgage payment, but still having equity to ...

lifeisinmirrors

Unless the expense ratios are all over 1%, I would contribute the maximum to the 401(k) because tax deferral is a great benefit.

lifeisinmirrors

100% FXNAX (Fidelity U.S. Bond Index Fund) in my 75/25 portfolio.

lifeisinmirrors

I'm in that situation, I have 100% in FXNAX (Fidelity U.S. Bond Index) through the Brokerage Link option. I think the Pimco funds have a lot more risk/leverage and only a slightly higher return, along with being somewhat correlated to stocks. Bonds are in the portfolio for safety and lack of correla...

lifeisinmirrors

VWINX, has 2/3 intermediate term bonds and 1/3 large cap value stocks.

lifeisinmirrors

Traditional. If you plan to retire at 60, you could convert to Roth between retirement and starting to collect Social Security.

lifeisinmirrors

Getting a $600 refund is good tax planning. I don't know why people are upset about losing at most $10 that you could have earned in interest. There's interest and then there's the market. The markets went up 30% last year. Yes but very few people can have tax planning that is so perfect that they ...

lifeisinmirrors

Getting a $600 refund is good tax planning. I don't know why people are upset about losing at most $10 that you could have earned in interest.

lifeisinmirrors

If your portfolio is 60% stocks or more, I think intermediate term treasuries are a great choice for your entire bond allocation.

lifeisinmirrors

Look at how technology stocks did from 2000-2002. That's why nobody should be entirely invested in one sector.

That fund also has 35% of its holdings in two companies, it is even more concentrated than QQQ.

lifeisinmirrors

Most companies increased the stock allocations in their target date funds to get better returns and attract more assets. I happen to agree they're a bit too heavy in stocks. If you choose VTTHX, Target Date 2035, you'll have 76% stocks which may be more to your liking.

lifeisinmirrors

Ah sorry, I stand corrected!

lifeisinmirrors

What's hilarious about this guy, he made a big "admission" in 2017 that his models were quite wrong from 2010 and onward regarding impact of QE, etc.... and they were making serious adjustments to his fund. He's managed to lose another 25%+ or so since then, it looks like. So much for the...

lifeisinmirrors

I'd sell it. The fund has done well while you held it, but it replaced its longtime manager pretty recently.

lifeisinmirrors

Assuming you filed your 2014 taxes by the April 2015 deadline, the statute of limitations for the IRS to audit you expired in April 2018. (This is extended in some situations, but not for a minor error like yours).

lifeisinmirrors

It should do basically the same as AGG, the iShares U.S. bond index ETF.

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