Search found 520 matches

by michaeljmroger
Fri May 29, 2020 9:35 pm
Forum: Personal Finance (Not Investing)
Topic: Sell or rent $2m house?
Replies: 52
Views: 4119

Re: Sell or rent $2m house?

As a few of you mentioned, preserving the option to move back is definitely something we care about -- we're emotionally attached to this house, and we love California. I'm a little bit surprised by the overwhelming majority of "sells". Yes, I’m fundamentally a Boglehead too, but I guess I can see t...
by michaeljmroger
Fri May 29, 2020 5:56 pm
Forum: Personal Finance (Not Investing)
Topic: Sell or rent $2m house?
Replies: 52
Views: 4119

Sell or rent $2m house?

Bogleheads, We'll be permanently leaving the US soon, and I'm not entirely sure if I should sell or keep and rent our house. The house is in CA, it's estimated at $2,000,000 and we could probably rent it around $5,000 / month. If we rent it, we'd pay someone (approximately $200 / month) to manage it...
by michaeljmroger
Mon Mar 16, 2020 1:56 pm
Forum: Personal Investments
Topic: Safety of Money Market Funds Currently
Replies: 149
Views: 12261

Re: Safety of Money Market Funds Currently

Does someone know if TFDXX is just as safe as VUSXX?
by michaeljmroger
Thu Mar 12, 2020 12:49 pm
Forum: Investing - Theory, News & General
Topic: U.S. stocks in free fall
Replies: 19459
Views: 2695203

Re: U.S. stocks in free fall

I must admit I'm extremely worried to see that this bounce lasted for less than an hour. If such an extreme measure by the Fed doesn't work at all, then I don't see this drop stopping any time soon...
by michaeljmroger
Thu Mar 12, 2020 11:17 am
Forum: Investing - Theory, News & General
Topic: U.S. stocks in free fall
Replies: 19459
Views: 2695203

Re: U.S. stocks in free fall

VT (Total World Stock) is currently down -10%. I'm prepared for the worst, but I quite honestly never anticipated "the worst" to be that bad, at least not in a single day.
by michaeljmroger
Thu Mar 12, 2020 9:47 am
Forum: Investing - Theory, News & General
Topic: U.S. stocks in free fall
Replies: 19459
Views: 2695203

Re: U.S. stocks in free fall

I invested $1,000,000 in a lump sum in January (couldn't do it earlier). Talk about suboptimal timing... I'm not selling anything, but it's hard not to panic. Already lost $60,000 of this new money in the last two hours :? ... and another $60,000 loss this morning :-( Still trying to stay the cours...
by michaeljmroger
Mon Mar 09, 2020 10:26 am
Forum: Investing - Theory, News & General
Topic: U.S. stocks in free fall
Replies: 19459
Views: 2695203

Re: U.S. stocks in free fall

I invested $1,000,000 in a lump sum in January (couldn't do it earlier). Talk about suboptimal timing...

I'm not selling anything, but it's hard not to panic. Already lost $60,000 of this new money in the last two hours :?
by michaeljmroger
Fri Jan 03, 2020 6:00 pm
Forum: Personal Finance (Not Investing)
Topic: Ditch Wealthfront?
Replies: 13
Views: 1895

Re: Ditch Wealthfront?

If I'm understanding correctly, you'd save $25 per year by leaving Wealthfront. I wouldn't do any effort to save $25, but your mileage may vary.
by michaeljmroger
Thu Jan 02, 2020 3:24 pm
Forum: Personal Investments
Topic: VTSAX (Total Stock) vs. VTCLX (Tax-Managed Capital Appreciation)
Replies: 12
Views: 1001

Re: VTSAX vs. VTCLX

I prefer VTSAX for two reasons:
1. If you want to move out of Vanguard, you can easily convert VTSAX to VTI and transfer the ETF in-kind.
2. VTSAX contains small caps.
by michaeljmroger
Thu Jan 02, 2020 12:28 pm
Forum: Personal Investments
Topic: High bracket investors and short term reserves?
Replies: 22
Views: 1446

Re: High bracket investors and short term reserves?

It depends if you pay state taxes or not but, VMLUX is probably a good default. Yes state taxes but in a state (Illinois) which does not offer a fund to my knowledge and one in which I’d be hesitant to invest in anyways. Then I think VMLUX is a good choice. Alternatively, you could also use VUSXX. ...
by michaeljmroger
Thu Jan 02, 2020 12:13 pm
Forum: Personal Investments
Topic: High bracket investors and short term reserves?
Replies: 22
Views: 1446

Re: High bracket investors and short term reserves?

It depends if you pay state taxes or not but, VMLUX is probably a good default.
by michaeljmroger
Tue Dec 24, 2019 3:17 am
Forum: Personal Investments
Topic: Stupidly put Fidelity Zero in taxable - now what?
Replies: 32
Views: 4278

Re: Stupidly put Fidelity Zero in taxable - now what?

What's stupid about a broadly diversified, low turnover index fund in taxable? +1 It's not portable, so you can't easily move it to other brokerages. It's also not as tax efficient as the Vanguard funds, because it will pay some capital gains. However, it's not a bad choice. The expenses are zero, ...
by michaeljmroger
Tue Dec 24, 2019 3:07 am
Forum: Personal Investments
Topic: CA Tax Exempt Bonds.
Replies: 2
Views: 423

Re: CA Tax Exempt Bonds.

It’s often recommended to do 50% VCLAX and 50% VMLUX. That being said, after looking at the after-tax returns, I’m personally more and more convinced that 100% VWIUX is pretty much just as good.
by michaeljmroger
Mon Dec 09, 2019 2:02 pm
Forum: Personal Finance (Not Investing)
Topic: Can you transfer money with TransferWise directly to Vanguard?
Replies: 12
Views: 1599

Re: Can you transfer money with TransferWise directly to Vanguard?

I transferred many times from Transferwise to Vanguard.
by michaeljmroger
Mon Dec 09, 2019 12:54 pm
Forum: Personal Investments
Topic: Most tax efficient investment
Replies: 12
Views: 1632

Re: Most tax efficient investment

No, VTWAX isn’t the “most tax efficient” (that’d presumably be VTCLX) but tax efficiency is only one of the things you should be considering. Why are you focusing on that? Are you in the highest tax bracket? (For what it’s worth, VTWAX is one the most diversified fund out there and I’d highly recomm...
by michaeljmroger
Sun Dec 01, 2019 7:57 pm
Forum: Personal Investments
Topic: Transfer ETFs outside the US
Replies: 0
Views: 197

Transfer ETFs outside the US

I know it’s easy to transfer ETFs between US brokerages, but is it possible (and legal) to transfer them to a brokerage outside the US? If so, would that be a taxable event?

Thanks!
by michaeljmroger
Sat Nov 30, 2019 11:11 pm
Forum: Personal Investments
Topic: I’m done with index funds
Replies: 229
Views: 30507

Re: I’m done with index funds

After doing quite a lot of research, I’ve decided to stop using low-cost index funds and switch to a separately managed account. This goes against the Bogleheads investment philosophy and it took me a long time to admit it was the right thing to do for me as I was genuinely convinced and passionate...
by michaeljmroger
Sat Nov 30, 2019 4:39 pm
Forum: Personal Investments
Topic: I’m done with index funds
Replies: 229
Views: 30507

Re: I’m done with index funds

Who are you going with? I’m 90% sure to go with Morgan Stanley, but I’m still considering other firms like Schwab and Bessemer Trust which both offer the same strategy. Surprisingly enough, Schwab is actually more expensive than Morgan Stanley, so I’ll probably pass on them. Bessemer offers interes...
by michaeljmroger
Sat Nov 16, 2019 12:13 pm
Forum: Personal Investments
Topic: Schwab Private Client
Replies: 2
Views: 927

Re: Schwab Private Client

Reviving this old thread as I have the same question. Any feedback on it?
by michaeljmroger
Tue Oct 29, 2019 4:47 pm
Forum: Personal Investments
Topic: I’m done with index funds
Replies: 229
Views: 30507

Re: I’m done with index funds

InvestorThom wrote:
Tue Oct 29, 2019 4:35 pm
Sorry if someone mentioned this and I missed it. OP said he was HNW and on the way to UHNW.

Is there a generally accepted NW $ point that defines HNW and UHNW?
$1 million in investable assets for HNW, $30 million for UHNW.
by michaeljmroger
Tue Oct 29, 2019 4:04 pm
Forum: Personal Investments
Topic: I’m done with index funds
Replies: 229
Views: 30507

Re: I’m done with index funds

before you pay .7% for this service you really ought to look at Fidelity's offering. At your investment level looks like you could be at the .2% fee level. See my 3 year summary of actual results posted Sunday night about 7:30. It appears Fidelity's approach isn't as aggressive in tax harvesting as...
by michaeljmroger
Tue Oct 29, 2019 1:54 pm
Forum: Personal Investments
Topic: I’m done with index funds
Replies: 229
Views: 30507

Re: I’m done with index funds

You cannot simply “stop” at the $70k fees if they actually save me $500k of capital gains every single year. Maybe I'm thinking about it wrong, but conceptually, it seems like this strategy will have diminishing returns over time. Assume you replicate the S&P 500 with individual stocks. Some of tho...
by michaeljmroger
Tue Oct 29, 2019 11:58 am
Forum: Personal Investments
Topic: I’m done with index funds
Replies: 229
Views: 30507

Re: I’m done with index funds

before you pay .7% for this service you really ought to look at Fidelity's offering. At your investment level looks like you could be at the .2% fee level. See my 3 year summary of actual results posted Sunday night about 7:30. It appears Fidelity's approach isn't as aggressive in tax harvesting as...
by michaeljmroger
Tue Oct 29, 2019 11:39 am
Forum: Personal Investments
Topic: I’m done with index funds
Replies: 229
Views: 30507

Re: I’m done with index funds

This is a index strategy: The fact that it is direct does not change much. ... Tracking Error Why does this matter? Be specific. Tracking error only makes sense in context. The goal of a portfolio is to generate the highest risk-adjusted after-tax return. What if the portfolio fee's were .7%, you h...
by michaeljmroger
Tue Oct 29, 2019 10:40 am
Forum: Personal Investments
Topic: I’m done with index funds
Replies: 229
Views: 30507

Re: I’m done with index funds

Lots of points that I am responding to. I am seeing lots of Fear, Uncertainty and Doubt (FUD) - not actual arguments. This is a index strategy: The fact that it is direct does not change much. This is a complex strategy. This is not a very complex strategy, at least in terms in math behind it. It i...
by michaeljmroger
Tue Oct 29, 2019 10:33 am
Forum: Personal Investments
Topic: I’m done with index funds
Replies: 229
Views: 30507

Re: I’m done with index funds

OP, it appears the consensus here is overwhelmingly against your proposed strategy. I'm curious if your mind has been swayed by the responses or if you still plan to go ahead with your strategy? I'm also interested in OP's updated decision process, if it's changed. I can't get over the 70bp per yea...
by michaeljmroger
Tue Oct 29, 2019 12:47 am
Forum: Personal Investments
Topic: I’m done with index funds
Replies: 229
Views: 30507

Re: I’m done with index funds

What accounts for the better performance? If we don’t know, we shouldn’t expect it to continue- maybe just tracking error, and the variance in the future may be in the other direction? I think the main reasons are: SCHB has to pay qualified dividend income taxes SCHB has a ~4% turnover ratio, while...
by michaeljmroger
Mon Oct 28, 2019 11:45 pm
Forum: Personal Investments
Topic: I’m done with index funds
Replies: 229
Views: 30507

Re: I’m done with index funds

One more thing I should mention is that even if I didn’t have those massive upcoming capital gains, it seems like this SMA approach would yield more after taxes than a traditional TSM fund. For instance, the after-tax returns of SCHB (the TSM fund I’m currently using) are: 1 year: 2.3 3 years: 12.2 ...
by michaeljmroger
Mon Oct 28, 2019 11:16 pm
Forum: Personal Investments
Topic: What to do with a "full service" 2M managed portfolio?
Replies: 15
Views: 2083

Re: What to do with a "full service" 2M managed portfolio?

The managed account is underperforming (in both up and down markets) two other Robo accounts I have with Betterment and Wealthfront. Underperforming by how much? You’re presumably going to take a significant tax hit by moving to another broker so make sure it’s worth it (I assume you’ve done the ma...
by michaeljmroger
Sun Oct 27, 2019 7:51 pm
Forum: Personal Investments
Topic: I’m done with index funds
Replies: 229
Views: 30507

Re: I’m done with index funds

If you are replicating the S&P 500 you are still indexing. I personally believe that direct replication will be the next big innovation, after mutual funds and ETFs. Exactly. You're just running your own index fund. It's really a shame that mutual funds can't pass through harvested losses. Not quit...
by michaeljmroger
Sun Oct 27, 2019 7:48 pm
Forum: Personal Investments
Topic: I’m done with index funds
Replies: 229
Views: 30507

Re: I’m done with index funds

wawoodjr wrote:
Sun Oct 27, 2019 7:40 pm
I'm still confused. Why would you be realizing $500K in capital gains every year?
From my first post:
michaeljmroger wrote:
Sun Oct 27, 2019 11:27 am
I’ll likely have 7-figure capital gains to deal with in a few years
I need to tax-loss harvest as much as possible until then.
by michaeljmroger
Sun Oct 27, 2019 4:26 pm
Forum: Personal Investments
Topic: I’m done with index funds
Replies: 229
Views: 30507

Re: I’m done with index funds

70 basis point fee. Every year. $70,000 fee for every $10 million invested. Every year. Dead stop for me right there. Sorry, but I can’t see it. I agree. This is not something that would interest me. No offense, but many Bogleheads have developed a dogmatic, blindsided approach based exclusively on...
by michaeljmroger
Sun Oct 27, 2019 4:13 pm
Forum: Personal Investments
Topic: I’m done with index funds
Replies: 229
Views: 30507

Re: I’m done with index funds

70 basis point fee. Every year. $70,000 fee for every $10 million invested. Every year. Dead stop for me right there. Sorry, but I can’t see it. I agree. This is not something that would interest me. No offense, but many Bogleheads have developed a dogmatic, blindsided approach based exclusively on...
by michaeljmroger
Sun Oct 27, 2019 3:31 pm
Forum: Personal Investments
Topic: I’m done with index funds
Replies: 229
Views: 30507

Re: I’m done with index funds

Who are you going with? I’m 90% sure to go with Morgan Stanley, but I’m still considering other firms like Schwab and Bessemer Trust which both offer the same strategy. Surprisingly enough, Schwab is actually more expensive than Morgan Stanley, so I’ll probably pass on them. Bessemer offers interes...
by michaeljmroger
Sun Oct 27, 2019 12:33 pm
Forum: Personal Investments
Topic: I’m done with index funds
Replies: 229
Views: 30507

Re: I’m done with index funds

The original poster might have large amounts of stock options or company stock, my suspicion is that he might work for a high tech company and will be liquidating those investments in the future. My guess is that his potential large capital gains are from that and not from his investment portfolio....
by michaeljmroger
Sun Oct 27, 2019 11:47 am
Forum: Personal Investments
Topic: I’m done with index funds
Replies: 229
Views: 30507

Re: I’m done with index funds

bgf wrote:
Sun Oct 27, 2019 11:44 am
how much would you actually be able to TLH under this new strategy compared to index funds?
On average, $50k annually for every million invested.
by michaeljmroger
Sun Oct 27, 2019 11:43 am
Forum: Personal Investments
Topic: I’m done with index funds
Replies: 229
Views: 30507

Re: I’m done with index funds

Not sure I fully understand .I thought you could do tax loss harvesting being in index funds too ? It’s a lot more limited. If the fund is up, there’s nothing you can do about it. But if you hold individual stocks instead, there’s basically always at least one loss you can harvest. If you’re doing ...
by michaeljmroger
Sun Oct 27, 2019 11:35 am
Forum: Personal Investments
Topic: I’m done with index funds
Replies: 229
Views: 30507

Re: I’m done with index funds

Perhaps you should consider gifting and/or a donor advised fund for charitable purposes... I’m already doing that. If you are replicating the S&P 500 you are still indexing. I personally believe that direct replication will be the next big innovation, after mutual funds and ETFs. Right, it’s a diff...
by michaeljmroger
Sun Oct 27, 2019 11:27 am
Forum: Personal Investments
Topic: I’m done with index funds
Replies: 229
Views: 30507

I’m done with index funds

After doing quite a lot of research, I’ve decided to stop using low-cost index funds and switch to a separately managed account. This goes against the Bogleheads investment philosophy and it took me a long time to admit it was the right thing to do for me as I was genuinely convinced and passionate ...
by michaeljmroger
Wed Oct 16, 2019 9:24 pm
Forum: Personal Investments
Topic: 7-figure portfolio: 1-year review
Replies: 16
Views: 3678

Re: 7-figure portfolio: 1-year review

smectym wrote:
Wed Oct 16, 2019 5:59 pm
Given the tax bracket issues OP flags, I would agree with OP that Vanguard Tax Managed Balanced Fund might be worth consideration.
How can I figure out if they’d make more sense than SCHB in my tax bracket? I suspect they do, but I’d prefer to validate this assumption with actual data.
by michaeljmroger
Wed Oct 16, 2019 3:07 pm
Forum: Personal Investments
Topic: 7-figure portfolio: 1-year review
Replies: 16
Views: 3678

Re: 7-figure portfolio: 1-year review

Jack FFR1846 wrote:
Wed Oct 16, 2019 3:05 pm
I think it looks fine. You could simplify by replacing all those bond things with BND or something similar.
BND would be a lot less tax-efficient though. I don't think it makes a lot of sense given my tax bracket.
by michaeljmroger
Wed Oct 16, 2019 3:00 pm
Forum: Personal Investments
Topic: 7-figure portfolio: 1-year review
Replies: 16
Views: 3678

7-figure portfolio: 1-year review

Bogleheads, Thanks to your invaluable help, I started investing by myself about a year ago. My portfolio has done well so far (+8%) and I stayed the course despite a scary December last year. Overall, I'm satisfied with what I have but since I'm self-managing a large portfolio, I wanted to get your ...
by michaeljmroger
Wed Oct 02, 2019 1:23 pm
Forum: Personal Investments
Topic: Aggregate annual return
Replies: 2
Views: 246

Aggregate annual return

Bogleheads,

I have my funds unevenly split between Schwab and Vanguard and I was wondering if there's an easy way to see my overall annual return?

Thank you!
by michaeljmroger
Mon Sep 23, 2019 11:30 am
Forum: Investing - Theory, News & General
Topic: [Deleted]
Replies: 23
Views: 2165

Re: Private Equity is ready for Vanguard type disruption

I’d personally love that. I almost went to a multi-family office where I was going to pay obscene fees largely because I was interested in their private equity funds.
by michaeljmroger
Tue Sep 17, 2019 11:37 pm
Forum: Investing - Theory, News & General
Topic: Manual auto roll of individual treasuries at Charles Schwab
Replies: 8
Views: 692

Re: Manual auto roll of individual treasuries at Charles Schwab

I personally went with Schwab’s treasury ETFs (SCHO and SCHR) as they’re basically the same as auto-rolling individual treasuries, and the 0.06% ER is negligible for me given the convenience of using funds.
by michaeljmroger
Tue Sep 17, 2019 10:20 am
Forum: Personal Investments
Topic: Is private wealth management worth it?
Replies: 47
Views: 6591

Re: Is private wealth management worth it?

Gill wrote:
Tue Sep 17, 2019 10:08 am
michaeljmroger wrote:
Mon Sep 16, 2019 11:04 pm
I’d recommend either Northern Trust or Bessemer Trust.
Well acquainted with both - former senior officer of one.
:thumbsdown :thumbsdown
Gill
Mind elaborating? Some trustworthy members of this board had nothing but great things to say about them so I'm surprised about your reaction.
by michaeljmroger
Tue Sep 17, 2019 9:29 am
Forum: Personal Investments
Topic: Is private wealth management worth it?
Replies: 47
Views: 6591

Re: Is private wealth management worth it?

Alternatively, if you care more about simplicity than tax optimization, you could go with a two-fund portfolio:
  • 30% VTWIX
  • 70% VIIGX
These funds are technically institutional shares, but anyone can actually use them if they meet the minimum required ($5M).
by michaeljmroger
Tue Sep 17, 2019 9:17 am
Forum: Personal Investments
Topic: Looking for a More Tax-Efficient Intl Index Fund than Vanguard Total International (VTIAX)?
Replies: 36
Views: 4386

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

Northern Flicker wrote:
Tue Sep 17, 2019 2:01 am
What percent of dividends of SCHF are qualified?
85% in 2017, 90% in 2016 (source).