Search found 46 matches

by SantaClaraSurfer
Thu Jul 25, 2019 12:51 pm
Forum: Personal Investments
Topic: What to do with cash in Schwab?
Replies: 42
Views: 2450

Re: What to do with cash in Schwab?

LilyFleur wrote:
Wed Jul 24, 2019 11:16 pm
Do you report anything at all anywhere from SWKXX on your taxes?
Yes, we fully report and comply!! I could have put it better, maybe say that it's doesn't effectively impact our gross income??

IANAA!!
by SantaClaraSurfer
Wed Jul 24, 2019 1:38 pm
Forum: Personal Investments
Topic: What to do with cash in Schwab?
Replies: 42
Views: 2450

Re: What to do with cash in Schwab?

We use SWKXX for our "savings goal accounts." Ie. everything with a near term, but not immediate need for withdrawal. We both have Schwab ATMs so, for example, we could sell an amount equal to our vacation spending $$ and then just use the cards, esp. overseas where Schwab is convenient. However, we...
by SantaClaraSurfer
Wed Jul 24, 2019 11:14 am
Forum: Personal Finance (Not Investing)
Topic: Sell paid off house, invest proceeds and rent
Replies: 47
Views: 3699

Re: Sell paid off house, invest proceeds and rent

Here's some perspective from the reverse scenario: I'm 50, my wife is 40. We are "almost empty nesters" with two kids going through college over the next six years. We've decided to rent for our remaining career years and invest the savings in a taxable account. Folks who feel like renting is tossin...
by SantaClaraSurfer
Sun Jul 14, 2019 9:40 am
Forum: Personal Finance (Not Investing)
Topic: Advice on how to organize brokerage account with multiple goals?
Replies: 6
Views: 644

Re: Advice on how to organize brokerage account with multiple goals?

We park our cash for goals in a single Money Fund at Schwab and track it. We use GoodBudget. Ex. 5000 in Money Fund GoodBudget folders: 1000 Vacation 2500 Car 1500 Home Improvement We reconcile once a month. It can be tricky when you've spent money and there's money coming in. But that's a good prob...
by SantaClaraSurfer
Fri Jul 12, 2019 11:46 pm
Forum: Personal Investments
Topic: Advice for a College Grad Looking to Build Wealth
Replies: 31
Views: 1668

Re: Advice for a College Grad Looking to Build Wealth

1. Absolutely agree. I actually have been sticking to Daily Budget Original (helps me track my day-to-day spending. Giving me a dollar amount I can spend each day for things like food, clothes, drink etc) $20 :D 2. Do you recommend I look into partnering with a Credit Union at my age? What are the ...
by SantaClaraSurfer
Fri Jul 12, 2019 4:33 pm
Forum: Investing - Theory, News & General
Topic: Index Fund Creator Jack Bogle Didn't Like ETFs Being Used For Speculation
Replies: 84
Views: 3825

Re: "ETFs are a loser’s game. Let me be very clear about that."

I've yet to sell a single share of an ETF. SCHB is a Boglehead friendly investment, if I ever saw one. Zero complaints. However, I did have some issues with my last LOWC purchase that make me think that the smaller ETFs are more vulnerable to the above criticisms. I guess there was not enough trade ...
by SantaClaraSurfer
Fri Jul 12, 2019 4:16 pm
Forum: Personal Investments
Topic: Advice for a College Grad Looking to Build Wealth
Replies: 31
Views: 1668

Re: Advice for a College Grad Looking to Build Wealth

1. Learn how to use an app like Good Budget and create Monthly, Annual and Goal envelopes so that you are always only spending money that you already have saved. Once you do this, your appropriate savings rate/spending rate will become super clear. 2. We've had great luck with Credit Unions. Saved u...
by SantaClaraSurfer
Fri Jul 12, 2019 2:57 pm
Forum: Personal Finance (Not Investing)
Topic: Can I afford this 2.3 million dollar home?
Replies: 273
Views: 27119

Re: Can I afford this 2.3 million dollar home?

I've no idea how much I left on the table, in terms of reduced equity grants and/or career progression compared to if I'd stayed in silicon valley, but on the other hand I don't care -- things worked out so well, we've got "Enough" That's awesome. And "enough" means you don't really need to quantif...
by SantaClaraSurfer
Thu Jul 11, 2019 8:58 pm
Forum: Investing - Theory, News & General
Topic: Three most important elements of investment success
Replies: 67
Views: 6259

Re: Three most important elements of investment success

Agreed. Number 1 is most of the ballgame. (We just downsized our vacation to keep to this goal. We will still have a blast!) Number 2 can be counterintuitive (esp. maxing 401(k) and living on net pay) but is most of the rest of the ballgame. Number 3 has less impact on ultimate outcomes, in my view,...
by SantaClaraSurfer
Thu Jul 11, 2019 12:49 pm
Forum: Personal Finance (Not Investing)
Topic: Can I afford this 2.3 million dollar home?
Replies: 273
Views: 27119

Re: Can I afford this 2.3 million dollar home?

We are not at that income level, but faced with VHCOL area we decided to rent at $4500/mo. versus purchase (comparable was above $1.15 million.) Deciding factor for us was considering: a) How far we would have to extend ourselves to make a down payment that would make buying work. b) How long our du...
by SantaClaraSurfer
Thu Jul 11, 2019 12:23 pm
Forum: Investing - Theory, News & General
Topic: Asset Allocation of the Ultra-Wealthy, can I copy their portfolio with index funds?
Replies: 63
Views: 5078

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

Doesn't anyone invested in a total market index fund have more than a little exposure to real estate / venture capital investments / pe already?

And that's not counting the other ways folks might be participating (pension funds, annuities, life insurance, etc.).
by SantaClaraSurfer
Fri Jun 28, 2019 5:52 pm
Forum: Personal Investments
Topic: Does anyone tilt away from the industry they work in?
Replies: 37
Views: 2134

Re: Does anyone tilt away from the industry they work in?

We actually do the opposite with a small part of our portfolio. (ie. Not our 401(k)s, which are the core of our retirement planning and are set up with a 3 fund Boglehead approach.) Basically, part of our Taxable investment portfolio are funds that we view as "in lieu of" purchasing a house in our a...
by SantaClaraSurfer
Tue Jun 25, 2019 3:06 pm
Forum: Personal Finance (Not Investing)
Topic: How did you lower your annual expenses?
Replies: 145
Views: 13410

Re: How did you lower your annual expenses?

1. We use the paid version of the Good Budget App for all major expense categories. We use this App every day. We then meet once a month and run our budget on Google Sheets to reconcile accounts. 2. We save for typical Annual expenses (Christmas, Birthdays, Petcare, Auto) as part of our standard Mon...
by SantaClaraSurfer
Thu Jun 13, 2019 3:31 pm
Forum: Investing - Theory, News & General
Topic: The Case Against ETFs
Replies: 193
Views: 9896

Re: The Case Against ETFs

I purchase our ETFs @1x month. I've got a tracker that I follow for our one year strategy. (ex. We are at 30% of our year allocation for SCHB.) I have a sheet that lets me enter available funds and then purchase blocks of ten and calculate remaining funds based on price per share. Typically, I purch...
by SantaClaraSurfer
Sun Jun 02, 2019 2:48 pm
Forum: Personal Finance (Not Investing)
Topic: For those who earn $500k+ per year. How'd you do that?
Replies: 369
Views: 39220

Re: For those who earn $500k+ per year. How'd you do that?

I'd like to hear too... even if only over $200k. I'm a structural engineer making $90k + benefits. Sounds decent but factor in 4 kids + wife, single income, and living in California it's lean living. Always thought in high school and college I wouldn't have to live this lean having my PE stamp. Eve...
by SantaClaraSurfer
Mon May 13, 2019 12:38 am
Forum: Personal Finance (Not Investing)
Topic: When did you realize it wasn't enough?
Replies: 33
Views: 7475

Re: When did you realize it wasn't enough?

We were in debt, and decided to move steadily towards increasing income. It worked. There was a key moment when we realized that we could do it, and we pushed forward and stretched to repay a 401(k) loan when one of us took a new job and was forced to choose or lose. That decision (repay, save more ...
by SantaClaraSurfer
Sun May 12, 2019 10:35 pm
Forum: Personal Consumer Issues
Topic: The psychology of money / wealth (a reflection)
Replies: 2
Views: 1086

The psychology of money / wealth (a reflection)

I am someone who has experienced money/wealth from multiple sides in adulthood. In this, I suppose I am similar to many, and also very unlike some who have experienced either steady wealth or constant need. In the interest of transparency, I probably had less than most folks on this board at one poi...
by SantaClaraSurfer
Mon May 06, 2019 10:16 am
Forum: Personal Investments
Topic: Boglehead investing through a major downturn
Replies: 36
Views: 3992

Re: Boglehead investing through a major downturn

Thank you everyone for the excellent grounding and advice. My wife and I are were mostly "survivors" of previous downturns (read: we left with debt on our backs). We were not investors/savers. That kind of stress is also bad, but it's a different kind of stress. Coming out of the 2007-10 recession (...
by SantaClaraSurfer
Fri May 03, 2019 8:18 pm
Forum: Personal Investments
Topic: Boglehead investing through a major downturn
Replies: 36
Views: 3992

Boglehead investing through a major downturn

I'm 50 and my wife is 40. We are both maxing out our 401(k) plans. With her match that means $27,000 per year into a Vanguard Target Date Fund. I have no match, but am 50, so my $25,000 per year goes into the best version of a 3 Fund portfolio I could construct in my Fidelity 401(k). Given our situa...
by SantaClaraSurfer
Tue Apr 30, 2019 2:18 pm
Forum: Investing - Theory, News & General
Topic: Target Date Funds doing it backwards?
Replies: 44
Views: 5025

Re: Target Date Funds doing it backwards?

Two quick built-in disadvantages of a rebalance-on-your-own approach: a) Underestimates psychology of investor inputs esp. in negative market environments. b) Can you explain what you are doing/did to your spouse/partner? The two items are linked. We sometimes talk about AA, rebalancing, DCA as if t...
by SantaClaraSurfer
Fri Apr 19, 2019 3:59 pm
Forum: Investing - Theory, News & General
Topic: Help me test / align this slightly alternate take
Replies: 4
Views: 521

Re: Help me test / align this slightly alternate take

These responses are all super helpful and let me understand that I'm pretty close to aligned!! The kind of questions/challenges I want to be able to withstand (and that this set up should protect against): 1. Spouse and I follow our allocation glide path and the market has a major downturn proximate...
by SantaClaraSurfer
Sun Apr 14, 2019 10:40 pm
Forum: Investing - Theory, News & General
Topic: Help me test / align this slightly alternate take
Replies: 4
Views: 521

Help me test / align this slightly alternate take

I am a huge fan of this site and deeply appreciative of the quality of the advice and insights to be had here on the wiki and in the forums. In my 20's I worked, for a short spell, running computer-assisted plans directed at everyday people for a major financial services company. The reason I share ...
by SantaClaraSurfer
Sun Apr 14, 2019 10:37 pm
Forum: Personal Investments
Topic: Help me test/align this slightly alternate take
Replies: 2
Views: 268

Re: Help me test/align this slightly alternate take

Flyer24 wrote:
Sun Apr 14, 2019 10:21 pm
You might post this in the Theory forum. This section is for your personal investments.
Ok will do!
by SantaClaraSurfer
Sun Apr 14, 2019 9:42 pm
Forum: Personal Investments
Topic: Help me test/align this slightly alternate take
Replies: 2
Views: 268

Help me test/align this slightly alternate take

Moved post to the Theory Forum. Moderators feel free to delete. Thank you.
by SantaClaraSurfer
Fri Apr 12, 2019 5:27 pm
Forum: Personal Finance (Not Investing)
Topic: RSU moving from Employer Grant Account into Our Trust: Tax Status
Replies: 4
Views: 298

Re: RSU moving from Employer Grant Account into Our Trust: Tax Status

I am assuming the employer-chosen brokerage RSU account will have to report out the difference in price somehow. It won't. The share is already paid for in full. Moving it to another account of yours is just like when people move their shares from Vanguard to Schwab. It isn't taxable. You keep the ...
by SantaClaraSurfer
Fri Apr 12, 2019 1:46 pm
Forum: Personal Finance (Not Investing)
Topic: RSU moving from Employer Grant Account into Our Trust: Tax Status
Replies: 4
Views: 298

Re: RSU moving from Employer Grant Account into Our Trust: Tax Status

No, they are moving from one brokerage to a different one. I am assuming the employer-chosen brokerage RSU account will have to report out the difference in price somehow. We aren't selling the share, so I don't exactly know how to accurately name and search for what the appreciation should be called.
by SantaClaraSurfer
Fri Apr 12, 2019 12:58 pm
Forum: Personal Finance (Not Investing)
Topic: RSU moving from Employer Grant Account into Our Trust: Tax Status
Replies: 4
Views: 298

RSU moving from Employer Grant Account into Our Trust: Tax Status

My wife and I are moving 1 share from an employer RSU account (the account at the employer-designated brokerage set up to receive shares) into our Taxable Brokerage Account set up under our Trust (we keep all of our assets in this Trust.) My question relates to taxes. When the RSUs vest, we receive ...
by SantaClaraSurfer
Wed Mar 20, 2019 11:31 am
Forum: Personal Investments
Topic: What role do bonds play in your portfolio?
Replies: 75
Views: 5342

Re: What role do bonds play in your portfolio?

Thanks to everyone for their answers. I've learned a good bit, and that's why I'm here. At this point, taking what I've learned, my answer would map to this framework (which I posted in another thread): Tier 1: Defined Benefits: SSI, Pensions, etc. Tier 2: Tax-Advantaged Accounts 401(k), Roth, etc. ...
by SantaClaraSurfer
Tue Mar 19, 2019 10:19 am
Forum: Personal Investments
Topic: The case for 100% equities
Replies: 199
Views: 13484

Re: The case for 100% equities

Alternate take: Tier 1: Defined Benefits: SSI, Pensions, etc. Tier 2: Tax-Advantaged Accounts 401(k), Roth, etc. (up to your maximum) Tier 3: Tax-Advantaged Fixed Income Investments (US Savings Bonds, etc.) Tier 4: Taxable Fixed Income Investments Tier 5: Taxable Equity Investments If you take the w...
by SantaClaraSurfer
Fri Mar 15, 2019 5:21 pm
Forum: Personal Investments
Topic: What role do bonds play in your portfolio?
Replies: 75
Views: 5342

Re: What role do bonds play in your portfolio?

Taxable bond funds (Schwab U.S. Bond ETF, SCHZ) in a taxable account are not very tax-efficient. Wiki article "Tax-efficient fund placement" . It is not prudent to use tax-exempt bonds or bond funds in a taxable account unless in a very high tax bracket. Thank you for sharing your insights. We are ...
by SantaClaraSurfer
Thu Mar 14, 2019 9:39 pm
Forum: Personal Investments
Topic: What role do bonds play in your portfolio?
Replies: 75
Views: 5342

Re: What role do bonds play in your portfolio?

70/30 AA, but if I count my vested pension it is more like 55/45. That's really interesting to think about. Do you think most people consider this? If someone has a pension, or even can count on maximum SSI, or a life insurance investment, should they adjust their bond allocation downwards because ...
by SantaClaraSurfer
Thu Mar 14, 2019 9:34 pm
Forum: Personal Investments
Topic: What role do bonds play in your portfolio?
Replies: 75
Views: 5342

Re: What role do bonds play in your portfolio?

The role of bonds in my portfolio: To keep me from making bad mistakes in a downturn. (1) To answer the direct question about rebalancing: I follow the Swedroe 5/25 rule (2) Thanks for the interesting reply. Here's my questions. (1) So, effectively avoiding the mistakes meant that the bond allocati...
by SantaClaraSurfer
Thu Mar 14, 2019 7:22 pm
Forum: Personal Investments
Topic: What role do bonds play in your portfolio?
Replies: 75
Views: 5342

What role do bonds play in your portfolio?

Instead of seeking specific advice or feedback about what I'm doing, I'd love to learn your thoughts. What function do you ask bonds to serve in your accounts? When the market does well, do you rebalance into bonds? How frequently? Background if you are curious: Spouse 401(k): 100% VTIVX, currently ...
by SantaClaraSurfer
Wed Mar 13, 2019 4:18 pm
Forum: Personal Investments
Topic: Late-start Fidelity 401(k)
Replies: 17
Views: 1318

Re: Late-start Fidelity 401(k)

Regarding home downpayment - my personal opinion is if you plan on buying in the next few years the money shouldn't be in Stocks nor Bonds - just plunk it into high-yield savings or MM at 2.25% - 2.5%. (Don't wait until 1-year prior to purchase hoping the market will be at a high) I agree, and fran...
by SantaClaraSurfer
Wed Mar 13, 2019 2:17 pm
Forum: Personal Investments
Topic: Late-start Fidelity 401(k)
Replies: 17
Views: 1318

Re: Late-start Fidelity 401(k)

(e.g. - you could put ALL your 401k into the Total-Market fund ; and pick international elsewhere). If you later cash out a large portion of your Schwab taxable for a home purchase - at that time - you can choose to rebalance by moving money inside the 401ks. 1. I am aggressively learning and appre...
by SantaClaraSurfer
Tue Mar 12, 2019 10:25 pm
Forum: Personal Investments
Topic: Late-start Fidelity 401(k)
Replies: 17
Views: 1318

Re: Late-start Fidelity 401(k)

My employer has it with our Fidelity 401K, yours may too. So instead of contributing this money to your taxable fund you'd put some of the exact same dollars into the 401K as after-tax and then convert them to Roth a few times a year; in this way the money will never be taxed again. You would want ...
by SantaClaraSurfer
Tue Mar 12, 2019 8:51 pm
Forum: Personal Investments
Topic: Late-start Fidelity 401(k)
Replies: 17
Views: 1318

Re: Late-start Fidelity 401(k)

I guess I don't see how investing in the entire market isn't diverse but you could certainly do worse. (1.) Also - not sure how the actively managed trowe funds help with downside risk (2.) - some of those underlying managednfunds have fallen harder and taken longer to return during downsides as co...
by SantaClaraSurfer
Tue Mar 12, 2019 5:14 pm
Forum: Personal Investments
Topic: Late-start Fidelity 401(k)
Replies: 17
Views: 1318

Re: Late-start Fidelity 401(k)

TRRJX is likely to just drag down your returns. 1. Thank you for both of your replies, very appreciated. 2. I guess I just don't conceptualize my 401(k) goal that way. Part of it is preservation, part of it is growth, and part of it is coming up with a strategy that I can follow, contribute to, and...
by SantaClaraSurfer
Tue Mar 12, 2019 5:03 pm
Forum: Personal Investments
Topic: Late-start Fidelity 401(k)
Replies: 17
Views: 1318

Re: Late-start Fidelity 401(k)

You have very limited exposure to emerging international markets if that matters to you (Fidelity Int is only developed). The amount of risk you take should not be different than your wife because you are both planning for the exact same situation. This doesn't mean that you would necessarily have ...
by SantaClaraSurfer
Tue Mar 12, 2019 3:13 pm
Forum: Personal Investments
Topic: Late-start Fidelity 401(k)
Replies: 17
Views: 1318

Late-start Fidelity 401(k)

Quick background: my wife and I both recently took higher-paying jobs, paid off debt (just in time for children's college years), and our savings/investing takes the form of her 401(k) (100% Vanguard Target Date), my catch-up 401(k) with Fidelity (see below) and our Schwab Brokerage account which ho...
by SantaClaraSurfer
Fri Mar 08, 2019 1:44 pm
Forum: Personal Investments
Topic: Most NON obvious thing for new investors
Replies: 58
Views: 7821

Re: Most NON obvious thing for new investors

A 401(k) contribution, all things being equal, creates a discount in the amount of your marginal tax rate. If your marginal tax rate is 35% and you add $1 to your pre-tax 401(k) contribution, your taxes go down by 35 cents. Effectively, you have purchased $1 in investments at a 35% discount. Once we...
by SantaClaraSurfer
Sun Feb 24, 2019 12:15 pm
Forum: Investing - Theory, News & General
Topic: "You're More Internationally Diversified Than You (Probably) Realize"
Replies: 139
Views: 10242

Re: "You're More Internationally Diversified Than You (Probably) Realize"

When they write: "40% foreign exposure, as measured by corporate revenues." That data point (corporate revenues) does NOT necessarily seem equivalent to having built the multi-national infrastructure to market, sell and grow an enterprise at global scale. Seems to me that if your approach seeks expo...
by SantaClaraSurfer
Fri Feb 22, 2019 12:19 pm
Forum: Personal Investments
Topic: Taxable Account / ETF Question
Replies: 7
Views: 767

Re: Taxable Account / ETF Question

Also fairly new here and realized my lack of quoting in previous responses may have been confusing and swung too far the other direction :oops: . Hoping I got it right this time. Totally fine by me, and appreciated the time you took on my questions!! It's also pretty easy to edit/reduce the quoted ...
by SantaClaraSurfer
Fri Feb 22, 2019 12:10 pm
Forum: Personal Investments
Topic: Taxable Account / ETF Question
Replies: 7
Views: 767

Re: Taxable Account / ETF Question

I prefer to lump sum contribute and rebalance annually with new contributions, placing bonds in tax advantaged accounts and placing equities to fill in the rest. Also not auto reinvesting dividends, and assigning cost basis on specific lot ID to optimize TLH’ing. I hear you on the lump sum (ie. not...
by SantaClaraSurfer
Fri Feb 22, 2019 11:38 am
Forum: Personal Investments
Topic: Taxable Account / ETF Question
Replies: 7
Views: 767

Re: Taxable Account / ETF Question

Thank you! A question and two replies: In a taxable account you are going to want to specifically identify shares as your cost basis method to reduce taxes and TLH. Selling to rebalance could also cause a taxable event. How would I identify shares as cost basis method at Schwab? What I see for Cost ...
by SantaClaraSurfer
Thu Feb 21, 2019 2:22 pm
Forum: Personal Investments
Topic: Taxable Account / ETF Question
Replies: 7
Views: 767

Taxable Account / ETF Question

1. New poster here and grateful for all the great advice and learning to be had. 2. My question is centered on ETF purchase strategy and investment management in a taxable account. If you don't want to read the background below (which is fine by me), my question is simply this: what are your best pr...