Search found 500 matches

by michaeljmroger
Tue Oct 29, 2019 4:47 pm
Forum: Personal Investments
Topic: I’m done with index funds
Replies: 201
Views: 20466

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: 201
Views: 20466

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: 201
Views: 20466

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: 201
Views: 20466

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: 201
Views: 20466

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: 201
Views: 20466

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: 201
Views: 20466

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: 201
Views: 20466

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: 201
Views: 20466

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: 1804

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: 201
Views: 20466

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: 201
Views: 20466

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: 201
Views: 20466

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: 201
Views: 20466

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: 201
Views: 20466

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: 201
Views: 20466

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: 201
Views: 20466

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: 201
Views: 20466

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: 201
Views: 20466

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: 201
Views: 20466

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: 3524

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: 3524

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: 3524

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: 230

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: Private Equity is ready for Vanguard type disruption
Replies: 23
Views: 1990

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: 577

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: 6122

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: 6122

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: 34
Views: 3389

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).
by michaeljmroger
Mon Sep 16, 2019 11:49 pm
Forum: Personal Investments
Topic: Is private wealth management worth it?
Replies: 47
Views: 6122

Re: Is private wealth management worth it?

pennywise88 wrote:
Mon Sep 16, 2019 11:28 pm
I live in TX so I don’t have state income tax. I’m 40 so they can stay in there for some time. Don’t plan to spend all that much, just normal living expenses.
Here’s a portfolio that’d presumably work well for you:
  • 15% VTCLX
  • 5% VTMSX
  • 10% VTMGX
  • 50% VWIUX
  • 20% VTAPX
by michaeljmroger
Mon Sep 16, 2019 11:26 pm
Forum: Personal Investments
Topic: Looking for a More Tax-Efficient Intl Index Fund than Vanguard Total International (VTIAX)?
Replies: 34
Views: 3389

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

The last time I checked, SCHF looked like one of the most tax-efficient ex-US ETFs out there (it doesn’t include EM or small caps though, which is part of the reason it’s so efficient I believe).
by michaeljmroger
Mon Sep 16, 2019 11:20 pm
Forum: Personal Investments
Topic: Is private wealth management worth it?
Replies: 47
Views: 6122

Re: Is private wealth management worth it?

Thanks for sharing your thoughts. I think I do want to manage it myself but the larger number is intimidating. I guess I just stick to the same plan I’ve been on which is low cost vanguard index funds albeit I’m now more concerned about preserving wealth as opposed to trying to achieve big returns....
by michaeljmroger
Mon Sep 16, 2019 11:04 pm
Forum: Personal Investments
Topic: Is private wealth management worth it?
Replies: 47
Views: 6122

Re: Is private wealth management worth it?

It really comes down to your willingness and interest to manage your money by yourself vs delegating this task to someone else. If you’re willing to learn, and you don’t mind the (minimal) work to do it yourself, you’re at the right place. Many people here can help you design a portfolio that will a...
by michaeljmroger
Wed Sep 11, 2019 12:07 am
Forum: Investing - Theory, News & General
Topic: Rich people are hoarding cash
Replies: 146
Views: 21373

Re: Rich people are hoarding cash

I use that because several trusts that preen themselves on offering white-glove service to “the rich” name $30 million as the minimum. Bessemer Trust is an example. Bessemer's average account size is well below that minimum. The allure of a special service is enough to get some people to pay more o...
by michaeljmroger
Sat Aug 24, 2019 11:43 am
Forum: Investing - Theory, News & General
Topic: "Converting Vanguard Mutual Funds To ETFs"
Replies: 29
Views: 3905

Re: "Converting Vanguard Mutual Funds To ETFs"

This general push for ETFs worries me a little bit as I’m concerned about the future of Vanguard’s tax-managed funds like VTMSX (which I use and love) that don’t have an ETF counterpart. I hope these funds keep the attention they deserve and don’t become obsolete. They already merged a couple of th...
by michaeljmroger
Sun Aug 18, 2019 12:45 am
Forum: Personal Investments
Topic: Most Tax-Efficient Funds when in high tax bracket
Replies: 14
Views: 1490

Re: Most Tax-Efficient Funds when in high tax bracket

For a typical 60/40 portfolio focusing on tax efficiency, I'd recommend the following:
  • 80% VTMFX
  • 15% VTMGX
  • 5% VTMSX
by michaeljmroger
Sun Jul 21, 2019 12:44 pm
Forum: Personal Investments
Topic: Thoughts on 33% Large 33% Mid and 33% small?
Replies: 84
Views: 6686

Re: Thoughts on 33% Large 33% Mid and 33% small?

detroitdiablo wrote:
Sun Jul 21, 2019 11:35 am
a portfolio that is 100% equities
I’m personally more worried about that than the equal split between large, mid and small caps.

Seems overall like a very risky portfolio to me. Massive tilt + no bonds = extreme volatility. Make sure you can stomach it.
by michaeljmroger
Sat Jul 20, 2019 8:16 pm
Forum: Personal Investments
Topic: Switching from passive to active management
Replies: 106
Views: 8976

Re: Switching from passive to active management

LFS1234 wrote:
Sat Jul 20, 2019 2:12 pm
  • you have now done an about-face and are asking us about the cheapest possible alternatives for estate-planning services.
I’m absolutely not looking for the cheapest possible alternatives. I only mentioned Vanguard because my funds are there.
by michaeljmroger
Fri Jul 19, 2019 1:13 pm
Forum: Personal Investments
Topic: Switching from passive to active management
Replies: 106
Views: 8976

Re: Switching from passive to active management

I decided to stick with low-cost index funds and individual services for estate planning, tax management, etc. instead of the all-in family office management. Speaking of estate planning, does anyone have any experience with Vanguard? It seems like it’s part of their Flagship Select services . Alter...
by michaeljmroger
Fri Jul 19, 2019 10:33 am
Forum: Investing - Theory, News & General
Topic: Vanguard says VTI is more tax-efficient than VTSAX
Replies: 32
Views: 3342

Vanguard says VTI is more tax-efficient than VTSAX

I just had a call with a Vanguard Flagship representative who told me the Total Stock Market mutual fund’s distributions could be higher than the ETF’s, making the ETF more tax-efficient despite Vanguard's dual-share fund structure. It’s literally the first time I hear this. I was convinced the tax ...
by michaeljmroger
Wed Jul 17, 2019 12:32 pm
Forum: Personal Investments
Topic: Switching from passive to active management
Replies: 106
Views: 8976

Re: Switching from passive to active management

I'm surprised this thread has gone on so long. The OP is not interested in the Boglehead ways, and the only reason I can figure for why he's using an advisor is because he sees it at a status symbol. Paul What a mean, unconstructive comment. For the record, the reason I'm looking into family office...
by michaeljmroger
Tue Jul 16, 2019 6:48 pm
Forum: Personal Investments
Topic: Switching from passive to active management
Replies: 106
Views: 8976

Re: Switching from passive to active management

As I’m considering the switch from my passive investments at Vanguard to active management at a multi-family office [...] Today I learned what a multi-family office was. https://en.wikipedia.org/wiki/Multi-family_office :shock: It's on days like this that I'm glad to fly ***way*** under their radar...
by michaeljmroger
Tue Jul 16, 2019 6:36 pm
Forum: Personal Investments
Topic: Switching from passive to active management
Replies: 106
Views: 8976

Re: Switching form passive to active management

I’d like to clarify that I’m not considering this multi-family office because I want to switch to active management. My interest for them comes from the wide range of services they offer (estate planning etc.) which are “unfortunately” bundled with active management. There’s also something reassuri...
by michaeljmroger
Mon Jul 15, 2019 3:39 am
Forum: Personal Investments
Topic: Switching from passive to active management
Replies: 106
Views: 8976

Re: Switching form passive to active management

Thanks everyone for your help and guidance, it’s helping me a lot! I’d like to clarify that I’m not considering this multi-family office because I want to switch to active management. My interest for them comes from the wide range of services they offer (estate planning etc.) which are “unfortunatel...
by michaeljmroger
Sun Jul 14, 2019 5:24 pm
Forum: Personal Investments
Topic: Switching from passive to active management
Replies: 106
Views: 8976

Re: Switching form passive to active management

Doesn't seem possible that this is true. You are 30/70 passive with nil fees and broad diversification and are selling at record highs (which may or may not be creating a taxable event) to change to 70/30 active with a local yokel with high fees. Are you just pulling our leg to get a reaction? That...
by michaeljmroger
Sun Jul 14, 2019 5:05 pm
Forum: Personal Investments
Topic: Advice on what cost basis to use to sell VTSAX
Replies: 10
Views: 1290

Re: Advice on what cost basis to use to sell VTSAX

I am thinking right now that I should be selling "by individual identification" method and should pick shares that I purchased between 2012 (when the cost basis started being kept by Vanguard) and July 2018 (to avoid paying short-term gain tax). It would be easier to do FIFO, but then I will be tax...
by michaeljmroger
Sun Jul 14, 2019 4:52 pm
Forum: Personal Investments
Topic: Switching from passive to active management
Replies: 106
Views: 8976

Switching from passive to active management

As I’m considering the switch from my passive investments at Vanguard to active management at a multi-family office, I see myself contemplating much riskier portfolios than what I currently have. It seems like I’m willing to be a lot more aggressive with active management, presumably because the man...
by michaeljmroger
Sun Jul 14, 2019 3:19 pm
Forum: Personal Investments
Topic: Would you exchange VTSAX to VTI ??
Replies: 42
Views: 3620

Re: Would you exchange VTSAX to VTI ??

schooner wrote:
Sat Jul 13, 2019 5:55 pm
there are other, in my opinion, serious issues with ETFs in general
Such as?
by michaeljmroger
Thu Jul 11, 2019 4:05 pm
Forum: Investing - Theory, News & General
Topic: Asset Allocation of the Ultra-Wealthy, can I copy their portfolio with index funds?
Replies: 63
Views: 5382

Re: Asset Allocation of the Ultra-Wealthy, can I copy their portfolio with index funds?

I’m talking right now with a high-end family office focusing on ultra high net worth families as I’m considering the switch from Vanguard to them (see https://www.bogleheads.org/forum/viewtopic.php?t=283322 for more context). I’ve been studying their investment strategies and portfolio proposals and...