Search found 24 matches

by hlinee
Tue Apr 16, 2019 7:26 am
Forum: Personal Investments
Topic: Short Term Bond Index vs. Prime Money Market
Replies: 30
Views: 3989

Re: Short Term Bond Index vs. Prime Money Market

The Money Market yield is likely to fall which would make the short term bond fund appreciate. Then you are stuck with a 2% yield instead of being locked into a 2.5% yield for 2-3 years. Just hold duration similar to your investment horizon. If you are saving less than year emergency fund, use mone...
by hlinee
Sat Apr 06, 2019 7:51 pm
Forum: Investing - Theory, News & General
Topic: When to add bonds?
Replies: 38
Views: 3745

Re: When to add bonds?

The reason why investors diversify across asset classes (stocks, bonds, cash, etc.) is to reduce our exposure to the risks associated with a particular asset class. This method of risk reduction goes above and beyond diversifying within an asset class. While you may have a well diversified stock po...
by hlinee
Tue Mar 12, 2019 8:45 am
Forum: Investing - Theory, News & General
Topic: Are Vanguard Mutual Funds dying?
Replies: 152
Views: 18111

Re: Are Vanguard Mutual Funds dying?

I hope not. I have an automatic withdrawal for monthly income set up from one of my mutual funds. Per Vanguard: "You can't make automatic investments or withdrawals into or out of ETFs." https://investor.vanguard.com/etf/etf-vs-mutual-fund I really don't understand why companies like Vanguard can't...
by hlinee
Mon Mar 11, 2019 2:13 pm
Forum: Personal Investments
Topic: 24 yr old investment plan!!
Replies: 26
Views: 2560

Re: 24 yr old investment plan!!

Maybe put the 10% from bonds into stocks instead? If you're 24, I would go 100% equities. I'm not even sure what value diversifying 10% bonds does at all.
by hlinee
Tue Mar 05, 2019 1:07 pm
Forum: Investing - Theory, News & General
Topic: Before and after the crash
Replies: 50
Views: 3370

Re: Before and after the crash

I'm a bit skeptical of how much we can really learn from history, especially in regards to the "warning signs" that are always so obvious in hindsight. The same warning signs are frequently pointed to by news media that the next recession is coming and yet when it doesn't come as predicted, they jus...
by hlinee
Wed Feb 27, 2019 10:43 pm
Forum: Investing - Theory, News & General
Topic: Uncorrelated Asset Classes
Replies: 89
Views: 8434

Re: Uncorrelated Asset Classes

Right- I don't have the source with me but I read somewhere that VTSAX and VTIAX have a correlation of 0.97 or something like that... Have had that correlation when ? Calculated how ? That's a good point- I dug up my source ( https://www.macroaxis.com/invest/market/VTIAX--compareProfile--VTSAX ) an...
by hlinee
Wed Feb 27, 2019 6:45 pm
Forum: Investing - Theory, News & General
Topic: Uncorrelated Asset Classes
Replies: 89
Views: 8434

Re: Uncorrelated Asset Classes

Right- I don't have the source with me but I read somewhere that VTSAX and VTIAX have a correlation of 0.97 or something like that...
by hlinee
Mon Feb 25, 2019 10:22 am
Forum: Personal Investments
Topic: Alternative to checking account for short term deposit
Replies: 18
Views: 1412

Re: Alternative to checking account for short term deposit

wriley4409 wrote:
Mon Feb 11, 2019 3:19 pm
T-bills wouldn't be a bad choice either.
Why would people buy T-bills when you can buy a treasury money market for a slightly lower yield (20 basis points or so). I feel like the liquidity is worth it for short term deposits.
by hlinee
Sun Feb 24, 2019 4:42 pm
Forum: Personal Investments
Topic: I won the game. Now what?
Replies: 16
Views: 4450

Re: I won the game. Now what?

Assuming some of your savings is in tax-deferred retirement plans, then you can reduce taxes once RMDs are due by contributing to charities: https://www.kiplinger.com/article/retirement/T054-C000-S004-ira-qcd-rules-qualified-charitable-distributions.html I know that you can deduct charitable contri...
by hlinee
Sat Feb 23, 2019 10:00 am
Forum: Investing - Theory, News & General
Topic: When do you notice the compounding at work?
Replies: 137
Views: 29372

Re: When do you notice the compounding at work?

I don't really understand how compounding works with equities and capital gains. I understand that if a stock issues dividends and you reinvest the dividends, you will get more dividends in the future on top of your reinvestment, as well as capital gains. However, say the stock does not issue divide...
by hlinee
Fri Feb 22, 2019 9:31 am
Forum: Personal Investments
Topic: Basic TLH/wash sale question
Replies: 46
Views: 3600

Re: Basic TLH/wash sale question

It's sale date that matters, not the purchase date there. If you sell just the old shares, then the ones bought 15 days before the sale cause a wash. If you invert it, sell the ones bought at 15 days, then 60 day shares are no problem. They are outside of the exclusion period. If you sell all of th...
by hlinee
Thu Feb 21, 2019 10:56 pm
Forum: Personal Investments
Topic: Basic TLH/wash sale question
Replies: 46
Views: 3600

Re: Basic TLH/wash sale question

This thread has me more confused than ever about wash sales. I understand you can't buy the "same" security 30 days after tax loss harvesting, but why would you need to sell off all of your shares to avoid the 30 days before rule? Say you have 100 shares you bought at $30 60 days ago and 50 shares y...
by hlinee
Mon Feb 18, 2019 7:28 am
Forum: Personal Finance (Not Investing)
Topic: NO Gift Tax on Gifts >$15k in a Year
Replies: 85
Views: 8388

Re: NO Gift Tax on Gifts >$15k in a Year

Wow I am glad I came across this thread because I was totally under the belief that you were taxed on the excess of $15,000/yr limit. Thanks for posting this thread!
by hlinee
Sat Feb 16, 2019 3:43 pm
Forum: Personal Investments
Topic: Federal vs Prime MM
Replies: 4
Views: 788

Re: Federal vs Prime MM

Not to hijack this thread, but would it be a bit risky to put my entire emergency fund in prime MM? Right now it is split between treasury and prime.
by hlinee
Sun Feb 10, 2019 10:35 am
Forum: Personal Investments
Topic: VTWAX in taxable- tax loss harvesting
Replies: 3
Views: 933

VTWAX in taxable- tax loss harvesting

I was thinking of purchasing VTWAX only in my taxable account to make things simple. I would contribute to it monthly automatically and make it hands off. This sounds very appealing to me. On the other hand, I could purchase a mix of VTSAX and VTIAX in my taxable account. The primary advantage of th...
by hlinee
Fri Feb 08, 2019 7:12 am
Forum: Investing - Theory, News & General
Topic: How much more tax efficient are Schwab ETFs vs index funds?
Replies: 12
Views: 1540

Re: How much more tax efficient are Schwab ETFs vs index funds?

Morningstar (free version) has a stat called the Tax Cost Ratio that can be used to compare funds. For example, go to http://www.morningstar.com Enter SWTSX and get the page. Click on the "Tax" tab. Click on "Compare". Enter SCHB Then look at the stats. General description of what the tax cost rati...
by hlinee
Fri Feb 08, 2019 6:29 am
Forum: Investing - Theory, News & General
Topic: How much more tax efficient are Schwab ETFs vs index funds?
Replies: 12
Views: 1540

Re: How much more tax efficient are Schwab ETFs vs index funds?

What is this "headache of dealing with an ETF" you speak of? I have both MFs and ETFs at Schwab and it's a pretty simple process to trade in either. I hold, and tax-loss harvest when necessary; don't reinvest dividends or cap gains. There is a tax efficiency table here on the wiki where you can see...
by hlinee
Thu Feb 07, 2019 6:26 pm
Forum: Investing - Theory, News & General
Topic: How much more tax efficient are Schwab ETFs vs index funds?
Replies: 12
Views: 1540

Re: How much more tax efficient are Schwab ETFs vs index funds?

I believe that the OP is referring to the underlying securities with the fund, the capital gains they generate from turnover, and the required year end capital gains distributions that funds must make - if they have any capital gains to distribute. And how to minimize those taxes. Otherwise, yes, m...
by hlinee
Thu Feb 07, 2019 6:55 am
Forum: Investing - Theory, News & General
Topic: How much more tax efficient are Schwab ETFs vs index funds?
Replies: 12
Views: 1540

How much more tax efficient are Schwab ETFs vs index funds?

I know that for funds outside of Vanguard, ETFs are generally more tax efficient than index funds because they can avoid distributing capital gains. However, since index funds have low turnover to begin with, I am wondering exactly how big of a deal this is as personally, I prefer mutual funds for t...
by hlinee
Mon Feb 04, 2019 8:02 pm
Forum: Personal Investments
Topic: Best Vanguard funds to construct a *taxable* account?
Replies: 16
Views: 5614

Re: Best Vanguard funds to construct a *taxable* account?

The total U.S. and total international are your best bets. You could also do S&P 500, 400, and 600 funds if you want to separate large cap, mid cap, and small cap allocations (I prefer S&P, but really just avoid the Russell indexes in taxable because they have more churn in the way they rebalance y...
by hlinee
Thu Jan 31, 2019 6:50 pm
Forum: Personal Investments
Topic: Marcus savings account best for parking cash <1year?
Replies: 15
Views: 1630

Re: Marcus savings account best for parking cash <1year?

All funds are required by the SEC to report 7-day yields net of expenses. Take a look at this Goldman pamphlet defining some money market fund terms: https://www.gsam.com/content/dam/gsam/pdfs/us/en/miscellaneous/GLM/money-market-yield-return-defs.pdf?sa=n&rd=n The Standardized 7-Day Current Yield ...
by hlinee
Thu Jan 31, 2019 3:31 pm
Forum: Personal Investments
Topic: Marcus savings account best for parking cash <1year?
Replies: 15
Views: 1630

Re: Marcus savings account best for parking cash <1year?

I'm at the lowest tax rate (still a student), so I'm not too concerned about taxes. Also, looking at the interest rates for money markets, after the expense ratio, doesn't seem to be doing much better than 2.25%. Buying treasuries directly sounds interesting, although I'm more tempted to buy funds ...
by hlinee
Thu Jan 31, 2019 9:41 am
Forum: Personal Investments
Topic: Marcus savings account best for parking cash <1year?
Replies: 15
Views: 1630

Re: Marcus savings account best for parking cash <1year?

I'm at the lowest tax rate (still a student), so I'm not too concerned about taxes. Also, looking at the interest rates for money markets, after the expense ratio, doesn't seem to be doing much better than 2.25%. Buying treasuries directly sounds interesting, although I'm more tempted to buy funds i...
by hlinee
Thu Jan 31, 2019 5:58 am
Forum: Personal Investments
Topic: Marcus savings account best for parking cash <1year?
Replies: 15
Views: 1630

Marcus savings account best for parking cash <1year?

I have about 100k sitting in a Marcus account at 2.25% currently. I will need to withdraw 30k in a few weeks and another 30k in September. I will probably need to withdraw another 30k in January 2020. Because of my short time frame, I was thinking either savings or money market would be best, and Ma...