Search found 38 matches

by Almond
Fri May 24, 2019 11:10 am
Forum: Personal Investments
Topic: Help my broker is trying to freak me out
Replies: 94
Views: 13923

Re: Help my broker is trying to freak me out

Almond - In order to give appropriate advice, it's best to keep all the information in one spot. I merged your update back into the original. Also, I posted an update note in the first post. In addition to seeing the entire discussion, members who've posted in the original thread will see the updat...
by Almond
Thu May 23, 2019 7:22 pm
Forum: Personal Investments
Topic: Help my broker is trying to freak me out
Replies: 94
Views: 13923

Re: My Broker is Freaking me out UPDATE

Hello everyone, I posted the below thread and want to thank you all for the helpful information and the suggestion to have my partner read it. She did and it really helped. However she still has a few questions, so hoping you can help. She has been told that brokers have to buy a % of funds they ho...
by Almond
Thu May 23, 2019 6:30 pm
Forum: Personal Investments
Topic: Help my broker is trying to freak me out
Replies: 94
Views: 13923

My Broker is Freaking me out UPDATE

[Thread updated, see below. --admin LadyGeek] Hello everyone, I posted the below thread and want to thank you all for the helpful information and the suggestion to have my partner read it. She did and it really helped. However she still has a few questions, so hoping you can help. She has been told...
by Almond
Fri May 17, 2019 12:57 pm
Forum: Personal Finance (Not Investing)
Topic: Benefits of becoming an independent contractor
Replies: 37
Views: 2971

Re: Benefits of becoming an independent contractor

If you gross $180k as an independent contractor, you won't be able to, nor will you want to, have a salary of $180k. Let's say your salary is $100k. Your business account would look something like this: Salary: $100k Employer 401k: $25k (25% of salary up to $56k total employer + employee) Employer ...
by Almond
Thu May 16, 2019 11:07 am
Forum: Personal Finance (Not Investing)
Topic: Benefits of becoming an independent contractor
Replies: 37
Views: 2971

Re: Benefits of becoming an independent contractor

I have done the best I can explaining the distinct differences. Someone else will have to try. I suggest contacting a professional. Thanks I appreciate you trying. Will google to see if I can get a better understanding. I am looking at how this work if you are self employed and already have a pre t...
by Almond
Wed May 15, 2019 7:20 pm
Forum: Personal Investments
Topic: Help my broker is trying to freak me out
Replies: 94
Views: 13923

Re: Help my broker is trying to freak me out

thank you everyone this has been really helpful. Thinking of moving to Merrill Edge. Need to check what I can move in kind. It is hard to believe paying 1% fee on $600k cost about $150k it seems so high and the fact it might be true is so shocking to me I can’t believe anyone would use a broker. Al...
by Almond
Wed May 15, 2019 5:51 pm
Forum: Personal Investments
Topic: Help my broker is trying to freak me out
Replies: 94
Views: 13923

Re: Help my broker is trying to freak me out

thank you everyone this has been really helpful. Thinking of moving to Merrill Edge. Need to check what I can move in kind. It is hard to believe paying 1% fee on $600k cost about $150k it seems so high and the fact it might be true is so shocking to me I can’t believe anyone would use a broker.
by Almond
Wed May 15, 2019 4:18 pm
Forum: Personal Investments
Topic: Help my broker is trying to freak me out
Replies: 94
Views: 13923

Re: Help my broker is trying to freak me out

Also I just did a calculation using nerd wallet if I leave $600k at 1% AUM fee, not including fund fees, over 15 years the total cost is $208k. WOW is that correct. If so why do most people not mange their own funds. Which is the question my partner keeps asking and I don’t know how to answer Inert...
by Almond
Wed May 15, 2019 4:16 pm
Forum: Personal Investments
Topic: Help my broker is trying to freak me out
Replies: 94
Views: 13923

Re: Help my broker is trying to freak me out

$600k at 1% is $6,000 a year. And yes, that is $6k a year that is not earning money for you every year after you lose it. Don't know if that gets you all the way to $208k though. What did you do to get there? here is the link I did it again with annual return of 6% and it came to $160k. It was base...
by Almond
Wed May 15, 2019 4:08 pm
Forum: Personal Finance (Not Investing)
Topic: Benefits of becoming an independent contractor
Replies: 37
Views: 2971

Re: Benefits of becoming an independent contractor

The direct rollover of employee after-tax contributions and earnings to a Roth IRA, do not go through a traditional IRA, are not reported on Form 8606 and are not subject to any pro-rata taxation. The pre-tax earnings are taxable when rolled over to a Roth IRA, but not when rolled over to a traditi...
by Almond
Wed May 15, 2019 3:58 pm
Forum: Personal Finance (Not Investing)
Topic: Benefits of becoming an independent contractor
Replies: 37
Views: 2971

Re: Benefits of becoming an independent contractor

Quick question. I thought the amount you can contribute to IRA is based on net income, after deductions. You seem to be basing it on gross. I am trying to help my partner figure out how much she can contribute going forward. be great if it is based on gross before deductions. Are you asking about i...
by Almond
Wed May 15, 2019 3:43 pm
Forum: Personal Investments
Topic: Help my broker is trying to freak me out
Replies: 94
Views: 13923

Re: Help my broker is trying to freak me out

Also I just did a calculation using nerd wallet if I leave $600k at 1% AUM fee, not including fund fees, over 15 years the total cost is $208k. WOW is that correct. If so why do most people not mange their own funds. Which is the question my partner keeps asking and I don’t know how to answer
by Almond
Wed May 15, 2019 3:38 pm
Forum: Personal Investments
Topic: Help my broker is trying to freak me out
Replies: 94
Views: 13923

Re: Help my broker is trying to freak me out

Please pay attention to the post that pointed out that if you sell non-US stocks and invest the proceeds in VTI, you may be selling low and buying high. At minimum, you will be making a significant change to your asset allocation and should be doing so consciously. You do not need to continue payin...
by Almond
Wed May 15, 2019 11:15 am
Forum: Personal Investments
Topic: Help my broker is trying to freak me out
Replies: 94
Views: 13923

Re: Help my broker is trying to freak me out

Please pay attention to the post that pointed out that if you sell non-US stocks and invest the proceeds in VTI, you may be selling low and buying high. At minimum, you will be making a significant change to your asset allocation and should be doing so consciously. You do not need to continue payin...
by Almond
Wed May 15, 2019 10:54 am
Forum: Personal Investments
Topic: VIG Versus VTI
Replies: 8
Views: 1114

Re: VIG Versus VTI

drk wrote:
Sun May 12, 2019 7:52 pm
Almond wrote:
Wed May 08, 2019 1:31 pm
Thank you both for your answers. very helpful. Curious why is VOO or VV more tax efficient than VTI?
They have a higher Qualified Dividend Income ratio.
Aah TY
by Almond
Wed May 15, 2019 10:53 am
Forum: Investing - Theory, News & General
Topic: ?Admiral share availability in other brokerages?[Yes, after a few weeks they are now appearing at other brokerages.]
Replies: 64
Views: 7269

Re: ?Admiral share availability in other brokerages?[Yes, after a few weeks they are now appearing at other brokerages.]

Still new to all this. Seen posts mentioning admiral shares. What is good about them vs VTI or something? I am looking to move to ME, which seems is not a good place to buy them? TY Admiral shares are mutual funds. VTI is the ETF version. If you are moving to ME it is best to use ETF's if you are c...
by Almond
Wed May 15, 2019 8:40 am
Forum: Investing - Theory, News & General
Topic: ?Admiral share availability in other brokerages?[Yes, after a few weeks they are now appearing at other brokerages.]
Replies: 64
Views: 7269

Re: ?Admiral share availability in other brokerages?[Yes, after a few weeks they are now appearing at other brokerages.]

Still new to all this. Seen posts mentioning admiral shares. What is good about them vs VTI or something? I am looking to move to ME, which seems is not a good place to buy them?

TY
by Almond
Wed May 15, 2019 8:24 am
Forum: Personal Finance (Not Investing)
Topic: Benefits of becoming an independent contractor
Replies: 37
Views: 2971

Re: Benefits of becoming an independent contractor

If you gross $180k as an independent contractor, you won't be able to, nor will you want to, have a salary of $180k. Let's say your salary is $100k. Your business account would look something like this: Salary: $100k Employer 401k: $25k (25% of salary up to $56k total employer + employee) Employer ...
by Almond
Wed May 15, 2019 8:11 am
Forum: Personal Finance (Not Investing)
Topic: Benefits of becoming an independent contractor
Replies: 37
Views: 2971

Re: Benefits of becoming an independent contractor

The after tax contribution to rollover to Roth IRA will be prorated? my understanding is the ira looks at the combined total of pre tax and after tax iras. say you have $100k pre tax Ira and you want to fund 50k after tax to Roth rollover. The Ira will tax at income part of Roth IRA that is greater...
by Almond
Tue May 14, 2019 8:57 am
Forum: Personal Finance (Not Investing)
Topic: Benefits of becoming an independent contractor
Replies: 37
Views: 2971

Re: Benefits of becoming an independent contractor

I'm considering becoming an independent contractor in a similar job that I'm currently employed. For purposes of this thread, assume non-compete isn't an issue. It isn't an issue and I'd like to stay on topic. My goal is to compare: A) Staying with my current company vs B) Starting a single-member ...
by Almond
Sat May 11, 2019 4:04 pm
Forum: Personal Investments
Topic: Help my broker is trying to freak me out
Replies: 94
Views: 13923

Re: Help my broker is trying to freak me out

Thank you everyone for the great advice. I felt I had read and learned a lot about the three fund portfolio but once I was talking with broker I got nervous and him saying such things as — obviously you can do as you want but not the first time I have see clients dump their well managed portfolio on...
by Almond
Sat May 11, 2019 9:22 am
Forum: Personal Investments
Topic: Help my broker is trying to freak me out
Replies: 94
Views: 13923

Help my broker is trying to freak me out

[Thread updated, see this post on Page 2. --admin LadyGeek] Hi, Thanks to so many people here and the tons of information I finally decided I wanted to go the three fund portfolio route. My plan was to put US stocks in VTI. Well I called my broker and he started saying I was making a grave mistake ...
by Almond
Wed May 08, 2019 1:31 pm
Forum: Personal Investments
Topic: VIG Versus VTI
Replies: 8
Views: 1114

Re: VIG Versus VTI

Thank you both for your answers. very helpful. Curious why is VOO or VV more tax efficient than VTI?
by Almond
Wed May 08, 2019 11:58 am
Forum: Personal Investments
Topic: VIG Versus VTI
Replies: 8
Views: 1114

VIG Versus VTI

I own about 10% of my AA in VIG the rest In managed funds. Looking to streamline and go the boglehead way, so question is there a major difference between VIG and VTI. rather not sell VIG as will have CG. With the remaining AA I could buy more VIG or buy VTI. Thoughts?

Thank you
by Almond
Mon May 06, 2019 2:28 pm
Forum: Personal Investments
Topic: Actively Managed Tax fund vs boring vanilla index funds?
Replies: 39
Views: 3605

Re: Actively Managed Tax fund vs boring vanilla index funds?

Thank you for this I was really struggling with tax lost harvesting but I think you cleared it up for me. make sure I understand say my VTI is down 3% I sell and then buy what? Is there a link where I can see what is a comparable fund? I assume in tax deferred accounts you would not do this as no p...
by Almond
Mon May 06, 2019 2:23 pm
Forum: Investing - Theory, News & General
Topic: What worst case scenario should bonds cover?
Replies: 47
Views: 2404

Re: What worst case scenario should bonds cover?

I think the investment approach should be a based on risk. The whole thing about AA and how much % stocks/bonds in general is based on risk - usually via a monte carlo simulation or age. I agree that approach is OK but one can have the same risk and better long term portfolio performance - if you b...
by Almond
Sun May 05, 2019 2:29 pm
Forum: Personal Investments
Topic: Long or medium bonds
Replies: 113
Views: 9838

Re: Long or medium bonds

Thank you so much very helpful and educational. I hope this is not too studio a question but if I buy the VUSUX and sell it before the terms are up do I pay penalties etc? No it acts just like an equity fund, the NAV will be up (gain) or down (loss) from your purchase (and potentially reinvestments...
by Almond
Sun May 05, 2019 12:28 pm
Forum: Personal Investments
Topic: Long or medium bonds
Replies: 113
Views: 9838

Re: Long or medium bonds

Thank you for your response in the last paragraph curious you did not recommend VUSTX which is what I was asking about? Nothing wrong with VUSUX: it's a fine fund, but if I had a choice I go with VLGSX because it has a lower expense ratio. VUSUX is actively managed whereas VLGSX is an index fund, b...
by Almond
Sat May 04, 2019 3:31 pm
Forum: Personal Investments
Topic: Actively Managed Tax fund vs boring vanilla index funds?
Replies: 39
Views: 3605

Re: Actively Managed Tax fund vs boring vanilla index funds?

Listen to your gut instincts, go with the index funds. The so called tax-alpha is just gobbledygook. There is such a thing called tax loss harvesting, basically you sell your position whenever the min-swoons in the stock market occur, but turn around and buy a similar fund with slight differences o...
by Almond
Thu May 02, 2019 7:15 pm
Forum: Personal Investments
Topic: portfolio questions
Replies: 10
Views: 1016

Re: portfolio questions

Either tips or medium term high grade corporate bonds. Long term treasuries are by no means bad, but I think long term bonds have slightly more risk than their reward at the moment. In a deflationary period long term bonds will likely do very well since 30 years at 30% looks much better if current r...
by Almond
Thu May 02, 2019 6:12 pm
Forum: Personal Investments
Topic: Long or medium bonds
Replies: 113
Views: 9838

Re: Long or medium bonds

It is my opinion that when you are young, you should hold a high equity allocation (between 60% and 100%) and the rest should be in long term treasury bonds (I prefer EDV). This is because in the scenario when this strategy gets killed (inflation) your earnings should hopefully keep up with inflati...
by Almond
Thu May 02, 2019 6:10 pm
Forum: Personal Investments
Topic: Long or medium bonds
Replies: 113
Views: 9838

Re: Long or medium bonds

So I backtested total bond market vs long term treasuries over various 10 year periods and the later performed better. My plan was to AA my bonds into VUSTX. The concept of matching your investment horizon to the bond duration is really one of risk management, not necessarily return maximization. N...
by Almond
Thu May 02, 2019 6:00 pm
Forum: Personal Investments
Topic: portfolio questions
Replies: 10
Views: 1016

Re: portfolio questions

Here is a back test link from 2002 to 2012 which includes both high and low interest rates. Treasuries seemed to do okay and one of the worst year was 2009 when I think interest rates were severely cut. hmm now I am confused again https://www.portfoliovisualizer.com/backtest-portfolio#analysisResul...
by Almond
Thu May 02, 2019 12:39 pm
Forum: Personal Investments
Topic: Long or medium bonds
Replies: 113
Views: 9838

Re: Long or medium bonds

this thread is timely for me and agree with the original poster that bonds are part of AA, but which ones causes me at least confusion. So I backtested total bond market vs long term treasuries over various 10 year periods and the later performed better. My plan was to AA my bonds into VUSTX. But no...
by Almond
Thu May 02, 2019 11:43 am
Forum: Personal Investments
Topic: portfolio questions
Replies: 10
Views: 1016

Re: portfolio questions

Here is a back test link from 2002 to 2012 which includes both high and low interest rates. Treasuries seemed to do okay and one of the worst year was 2009 when I think interest rates were severely cut. hmm now I am confused again https://www.portfoliovisualizer.com/backtest-portfolio#analysisResults
by Almond
Thu May 02, 2019 11:35 am
Forum: Personal Investments
Topic: portfolio questions
Replies: 10
Views: 1016

Re: portfolio questions

@cnc I backtested long term treasuries against total bond market from before the crash in 2008 plus 10 years and various other dates. During this time interest rates were at an historical low and yet long term treasuries over that time period outperformed total bond market. I am new to all this so c...
by Almond
Thu May 02, 2019 10:56 am
Forum: Personal Investments
Topic: portfolio questions
Replies: 10
Views: 1016

Re: portfolio questions

thanks for your replies but still unclear when it comes to bonds. I get bonds are a hedge against stocks and need to be a percentage of your portfolio. However, I still don’t understand the difference between VBTLX and VUSTX? when I have backtested them over multiple time periods and different perce...
by Almond
Wed May 01, 2019 3:17 pm
Forum: Personal Investments
Topic: portfolio questions
Replies: 10
Views: 1016

portfolio questions

hello everyone, So I have spent the last few weeks reading this forum and trying to understand as much as possible. I am looking to move to. A three fund, although seems some suggest two fund, portfolio strategy. My plan is to move everything to Merrill Edge, they were offering some big signup bonus...