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hungrywave

Someone on Reddit did just that with their 400k portfolio margin account: https://www.reddit.com/r/wallstreetbets/comments/fepd4q/portfolio_margin_is_10x_worse_than_u1r0nymans_box The poster bought 1.5m UPRO and 1.5m TMF levered up 8x and the broker(TD Ameritrade) still allows them 170k buying powe...

hungrywave

Dear Bogleheads, I am investing my globally-diversified, index-based asset allocation with Interactive Brokers. I am using their margin loans to create leverage a la the "mortgage your retirement" philosophy. (Yes, I have read the notorious MarketTimer's experiences. I am basing my margin loan amoun...

hungrywave

If you are going to use margin, it is better and safer to leverage up your safe asset using Treasury Futures, though IB rates aren't bad if you are borrowing a lot (1 million+). Personally I wouldn't go higher than 100%, and do something like 100% stocks, 150% ten year Treasuries, -150% cash. I use...

hungrywave

If you are going to use margin, it is better and safer to leverage up your safe asset using Treasury Futures, though IB rates aren't bad if you are borrowing a lot (1 million+). Personally I wouldn't go higher than 100%, and do something like 100% stocks, 150% ten year Treasuries, -150% cash. I use...

hungrywave

Hey Bogleheads! I have been thinking about how to "safely" use margin. The goal is to only borrow as much money as won't force you to sell in a bear market. It seems like MarketTimer's primary mistake was leveraging themselves to the point where they couldn't stay in the market during the 2008 crash...

hungrywave

The simplest and most efficient TLH strategy involves 2 partner funds (eg VTI/ITOT). I’m surprised no one suggested that these TLH partners could be viewed as substantially identical. Although they follow different indexes (ITOT follows S&P Total Market Index (TMI) with 3556 stocks and VTI follows ...

hungrywave

I posted a similar question recently regarding buying funds in an alternating pattern, with the thought being that if I bought ITOT on Jan 1, IVV on Feb 1, ITOT on Mar 1, etc... Whenever the bottom dropped out of the market, I would be able to TLH at least a portion of my portfolio without waiting ...

hungrywave

H-Town wrote: ↑Wed Dec 04, 2019 7:07 pm
hungrywave wrote: ↑Wed Dec 04, 2019 6:57 pm We could transfer monthly from savings to checking but that is too much work.
How? I tried to wrap my head around it...

Estimate your total bill payments for a month and transfer the total out from savings to checking once a month.

hungrywave

Ally has a limit of 6 transactions per cycle. Between direct deposits and credit card payments, my wife and I would be way over that limit. Am I interpreting this correctly? How do you Ally users deal with this limit? i believe that limit is per account and withdrawals, not deposits are what count....

hungrywave

Is there any company that can replace my Chase checking but with a higher yield? Checking Account SoFi has a hybrid checking / savings account that currently pays 1.60%. Simple pays 2.02%-2.15%, but only for money in a "Protected Goals Account." Redneck Bank pays 2.5% on its checking account, but o...

hungrywave

As someone that hasn't done this and has only read about it, one fine point that people in my situation seem to want to understand is how to deal with the "30 days before" part of the rule when selling. I think previous discussions indicate you can either wait for that limit to pass after your last...

hungrywave

Should I just stick with Chase checking and minimize the amount of cash I have in my account? Simplicity doesn’t get enough attention in this forum but, for cash needs, that and ease of use trumps absolute return in my book. Keep your cash holdings to a minimum and the difference is truly trivial. ...

hungrywave

Is there any company that can replace my Chase checking but with a higher yield? My needs: - Bill pay for credit cards (electronic) and rent (paper check) There is free bill pay, and free paper checks. - No-fee ATMs ATMs are free to use at AllPoint ATMs otherwise Ally Bank reimburses up to $10/mo i...

hungrywave

Is there any company that can replace my Chase checking but with a higher yield? My needs: - Bill pay for credit cards (electronic) and rent (paper check) - No-fee ATMs - Easy, no-fee transfers to and from my brokerage accounts - Generally good online interface Should I just stick with Chase checkin...

hungrywave

I think there is no point in doing this. First of all maybe you are thinking that if you buy something on Monday and sell 2 days later on Wednesday the same shares at a loss that this is a wash sale. It is NOT a wash sale. Basically, don't make tax-loss harvesting more complicated than it already i...

hungrywave

Betterment is different than an individual investor. Betterment cannot use the full range of EM funds for its clients, but an individual investor can always find something to use to replace the shares they sold at a loss. My threshold for amounts to tax-loss harvest depend on (a) is it near the end...

hungrywave

UPDATE WITH CROWDSOURCED SOLUTION: Thank you all for your advice! This was very helpful. The simplest and most efficient TLH strategy involves 2 partner funds (eg VTI/ITOT). The strategy is to buy one continually until you need to TLH. At that point, buy the other and continue buying it on into the ...

hungrywave

I just finished reading Betterment's excellent white paper on TLH. I'm curious to know what y'all think about their tantalizing statement about the risk of too-small loss harvesting thresholds: A harder cost to quantify could result from what can be thought of as an “overly itchy TLH trigger finger....

hungrywave

Yes it could be a source of an emergency fund the same way a HELOC could be used as one. I’m one that doesn’t want to tie up 6 months income in cash earning peanuts in an emergency fund that I’ll rally ever need. It could be callable depending on how high leverage you use and how severe the market ...

hungrywave

UPDATE: The answer is you can just no longer contribute. Growth over the limit is allowed. (Thank y’all for your help!!)

529s have a maximum amount they can hold. What happens if you go over through growth? Do you get to withdraw without penalty? At marginal income tax rates?

hungrywave

UPDATE: Thank you all for your wisdom and input! My takeaways include: - Cash back rewards may pale in comparison to any low-value spending they encourage. Simplicity (eg a single card) may be a way to reduce the risk of adverse behavior changes caused by chasing/optimizing rewards. - Signup bonuses...

hungrywave

Let's say I had a cash back credit card that I wanted to pay off every month. Can that bill be paid from my IBKR brokerage account? I see they offer "cash management", but I'm not sure what that means in practice. Would I have to actively manage this transaction every month? Or can the credit card ...

hungrywave

Also, I suspect that US09256V1605 is related to or contains the CUSIP for the fund but I can't get any part of it to be recognized by Google or PC: http://performance.morningstar.com/fund ... 09256V1605

hungrywave

I would think the fund would at least have a CUSIP somewhere but Google is stumped. I'm seeing in Personal Capital's customer support can figure it out...

hungrywave

UPDATE: Thank you all for your insights. My takeaways: - (Currently) 529 balances are used to calculate expected financial contribution (ECF) at the same rate as taxable brokerage accounts (5.64%). - Thus - back of the envelope - if a 4-year college is going to cost $50,000 per year, a parental asse...

hungrywave

Any updates on preferred 529s for US small-value? I know that Utah has Vanguard and DFA small-value but any others? :sharebeer Just curious, is that a general multi-generational tax deferral plan? I mean given how small value can go decades with underperforming, one would have to be cognizant of th...

hungrywave

Any updates on preferred 529s for US small-value? I know that Utah has Vanguard and DFA small-value but any others?

hungrywave

There's some insightful discussion in this thread that you may find helpful: https://www.bogleheads.org/forum/viewtopic.php?f=1&t=291982 Thank you, JD Leonard! That's an intense thread. It seems like one of the main points is to prioritize tax protected retirement accounts over 529s, which makes se...

hungrywave

Should we contribute to 529s or save in a taxable account? My wife and I are both doctors starting our careers in our early 30s. We have 2 kids, ages 2 years and 2 months. We are maxing out our tax-sheltered accounts and are saving aggressively with the goal of being financially independent with $3...

hungrywave

Im working the numbers for 2018. Does anybody know where to find the QDI and Foreign Tax numbers for Invesco and WisdomTree etfs ??. Thanks :greedy Are you offering to help me retire from this project? FYI: the Vanguard stuff won't be out for a while so there's no rush. Did you retire from this pro...

hungrywave

UPDATE: Thank you all for your insights. My takeaways: - (Currently) 529 balances are used to calculate expected financial contribution (ECF) at the same rate as taxable brokerage accounts (5.64%). - Thus - back of the envelope - if a 4-year college is going to cost $50,000 per year, a parental asse...

hungrywave

All that is required is for the recordkeeper to "separately account" for after-tax contributions and earnings. In fact most 401k plans use a single pooled account at the custodian for all participants and their sub accounts. Then the recordkeeper separately accounts by participant, contribution typ...

hungrywave

But how do you explain this IRS post ? “Can I roll over just the after-tax amounts in my retirement plan to a Roth IRA and leave the remainder in the plan? No, you can’t take a distribution of only the after-tax amounts and leave the rest in the plan.” This seems to forbid exactly what I am doing. ...

hungrywave

Y’all have been talking about how your 401ks account for pre-tax and after-tax contributions and earnings separately. I believe this accounting feature is why you argue there is no pro rata rule applied to the pre-tax remainder when the after-tax is rolled over (after-tax earnings aside). I have Fid...

hungrywave

Why would any US based buy and hold investor investing in mutual funds/etfs choose IB? I understand if one is trading futures,options,shorting and foriegn markets and utilize their low interest margin rates for leverage makes sense to go with IB. Looking over the whole multi-year thread this has be...

hungrywave

A relevant update from Vanguard: https://institutional.vanguard.com/VGAp ... Channel=RC

hungrywave

Orders submitted for the following days market open contribute to the supply and demand for that particular issue. Your particular order will affect the price of the market open directly related to it's "share" of the demand/supply for that issues open. Market orders, limit orders, and marketable l...

hungrywave

livesoft wrote: ↑Wed Sep 04, 2019 4:49 pm BTW, I started "Case Study" threads because I simply didn't believe all the conventional wisdom thrown around here on Bogleheads as if it mattered or was factual. Be skeptical!

Love it. Skeptical always!

hungrywave

So maybe they have some buying power voodoo, maybe not. But maybe the fractional share feature decreases cash drag enough to make sense. The Vanguard buy occurs the day after the payable date, so if you manually reinvest the dividend yourself, then you should be able to do it one day before Vanguar...

hungrywave

livesoft wrote: ↑Wed Sep 04, 2019 3:52 pm
hungrywave wrote: ↑Wed Sep 04, 2019 3:49 pmHoly cow, dude! I read the posts. That was luck, right?
I cannot tell a lie ...

... Yes, it was totally luck!

Haha! Good on you! So awesome!!

I dream about buying at the bottom of a flash crash. But likely I will be checking FaceBook and will miss it.

hungrywave

Sounds good. Thank you for the explanation of the subtleties! Is an ETF DRIP that invests at market open a bad idea, then, by extension? I emailed Vanguard and they didn't give me a straight answer. Welcome. It's hard to say on a DRIP (I didn't know they had etf drips). Vanguard is great and I expe...

hungrywave

Then there is what happened on August 15, 2015. See: https://www.bogleheads.org/forum/viewtopic.php?f=10&t=165732#p2600976 The 4.5% advantage that I obtained by using the opening cross will more than offset any of the things mentioned in this thread for decades to come. :twisted: The best part of t...

hungrywave

It looks like it is more of a theoretical attempt to limit opening volatility - not an elimination of spreads. So, that gets back to the question - is there an asymmetric disadvantage to buying at open? Do you somehow end up paying a significant premium on average? The cross algorithm chooses the p...

hungrywave

Why is anyone writing about "spreads"? There are no bid/ask spreads at the opening cross. Spreads are indirectly relevant. The cross has no spread, but does have imbalances. The people who offset the imbalances are doing an economic calculation that includes, among other things, the times & prices ...

hungrywave

I think you will served by a google search and research better than any answer I can give you. Then please report back for the others in this thread. Thanks! I can say that though the that price range that an order filled at the opening cross will be exactly zero. Haha! Fair! https://www.investoped...

hungrywave

Why is anyone writing about "spreads"? There are no bid/ask spreads at the opening cross. What is the opening cross? Is it something you can actually trade at? After all, there must be limit to how many shares can be traded before there is a spread, right? How wide a price range might a market open...

hungrywave

I'm not talking about after-hours trading. My question is whether placing an ETF order for execution at the beginning of the next market day is as bad as trading during the very beginning and very end of the market day, due to high spreads: https://pressroom.vanguard.com/nonindexed/Best_Practices_fo...

hungrywave

Interesting that currency has a 10 year reversion like stock. But sounds too uncertain to bet on it... No, currency does not mean revert like stocks. Stocks are both mean reverting and time varying. This is true both for returns and for volatility. That is, for a particular secular period the stock...

hungrywave

Some big points. You need to disentangle changes in the FX rates due to inflation and relative strength. Most of the changes can be traced back to inflation. USD has been running at 3%, the EUR zone at 2%, so you would expect a change in the FX rate of 1%. Of course, the relative strength does chan...

hungrywave

I hold a third of my fixed income in local currency ex-US to reduce my exposure to the US dollar. But as for equity, the correlation between a currency and locally incorporated stock valuation isn’t that strong. If an ex-US currency weakens, on the one hand the unit that the stock price is measured...

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