Search found 269 matches

by lkar
Sat Apr 04, 2020 9:34 am
Forum: Personal Finance (Not Investing)
Topic: How often do Life Cycle/Target Date funds rebalance?
Replies: 17
Views: 1703

Re: How often do Life Cycle/Target Date funds rebalance?

I believe they need to keep the fund at it's advertised AA on a daily basis so buyers get the advertised AA no matter what day customers buy. This seems to be the key to the question. When I look at my funds on the VG website it shows the composition to the tenths decimal place. Since this is a mat...
by lkar
Sat Apr 04, 2020 9:25 am
Forum: Personal Finance (Not Investing)
Topic: Can You Get Multiple PPP Loans If You Own Multiple Businesses?
Replies: 8
Views: 2189

Re: Can You Get Multiple PPP Loans If You Own Multiple Businesses?

This is a 7(a) loan under the SB Act. Though there are some modifications in general the recent regulations make clear that the standard affiliation rules apply. What constitutes an affiliate is extremely complicated and really not the stuff of message boarding advice. There are regulations that can...
by lkar
Tue Mar 17, 2020 11:08 am
Forum: Personal Investments
Topic: I don't have a plan. What should I do?
Replies: 10
Views: 940

Re: I don't have a plan. What should I do?

Hi -- thanks very much everyone. As I mentioned I have a few different accounts -- a work 401k, my wife's solo 401k, some backdoor roth IRAs his and hers, HSA etc. But taking the various accounts out of the equation, the portfolio is pretty basic. My 401k (60 percent of assets): Vanugard 2035 (about...
by lkar
Mon Mar 16, 2020 5:34 pm
Forum: Personal Investments
Topic: I don't have a plan. What should I do?
Replies: 10
Views: 940

Re: I don't have a plan. What should I do?

I am continuing to make contributions on the same schedule -- 1/24th twice a month -- into my 401k which is a 65/35 fund. Do you mean you have one fund that is 65/35? Something like a target fund? If yes, the fund will rebalance for you. If you mean you had some funds at 65/35 in your 401k, they wi...
by lkar
Mon Mar 16, 2020 5:24 pm
Forum: Personal Investments
Topic: I don't have a plan. What should I do?
Replies: 10
Views: 940

Re: I don't have a plan. What should I do?

Right -- sorry, good point. In addition to my 401k I have an inherited IRA and then we also have a solo 401k (my wife's) and brokerage roth IRAs that we have been using for backdoor conversions. My 401k is invested in a fund that is basically 63/37. So no need to rebalance there. But about 40 percen...
by lkar
Mon Mar 16, 2020 5:11 pm
Forum: Personal Investments
Topic: I don't have a plan. What should I do?
Replies: 10
Views: 940

I don't have a plan. What should I do?

I wish I had followed boglehead advice and made a plan. But I can't change that now. I started following boglehead philosophy last year and I did a lot of the work that would have gone into making a plan if I had made one. I got an account away from an investment advisor. I worked hard to figure out...
by lkar
Sun Mar 15, 2020 2:06 pm
Forum: Personal Investments
Topic: Switch from AGG to BND
Replies: 6
Views: 372

Re: Switch from AGG to BND

Many thanks. I was looking at an article that must have had older and out of date information.
by lkar
Sun Mar 15, 2020 1:28 pm
Forum: Personal Investments
Topic: Switch from AGG to BND
Replies: 6
Views: 372

Re: Switch from AGG to BND

When setting my bond allocation I went with AGG instead of BND in my fidelity account mostly due to avoiding commissions for rebalancing. In ordinary times this seemed like six of one and half a dozen of the other. But now in more turbulent times I like the fact that BND is much more diversified or...
by lkar
Sun Mar 15, 2020 1:03 pm
Forum: Personal Investments
Topic: Switch from AGG to BND
Replies: 6
Views: 372

Switch from AGG to BND

When setting my bond allocation I went with AGG instead of BND in my fidelity account mostly due to avoiding commissions for rebalancing. In ordinary times this seemed like six of one and half a dozen of the other. But now in more turbulent times I like the fact that BND is much more diversified or ...
by lkar
Sat Mar 14, 2020 5:34 pm
Forum: Personal Investments
Topic: How much you lost/gain since Feb 20,2020 ?
Replies: 320
Views: 25672

Re: How much you lost/gain since Feb 20,2020 ?

Down 15.6% on a 65/35.
by lkar
Thu Mar 12, 2020 1:56 pm
Forum: Investing - Theory, News & General
Topic: Total Bond Market Down >4%
Replies: 49
Views: 8941

Re: Total Bond Market Down >4%

Clearly I am guilty of not understanding what I own watching AGG get crushed today with the rest of the market.

Oh, well, nothing to do but sit and ride out and commit to becoming more educated after the dust settles and I have a better sense of what to do with the “safe” side of my AA.
by lkar
Thu Mar 12, 2020 9:58 am
Forum: Investing - Theory, News & General
Topic: HEDGEFUNDIE's excellent adventure Part II: The next journey
Replies: 4912
Views: 424937

Re: HEDGEFUNDIE's excellent adventure Part II: The next journey

It is interesting to see how things have operated in times of stress and volatility. I have learned a bit about myself. The most important point is this — even if the original premises are true I think I will have trouble staying in if this method generates outsized returns in the future. I am dabbl...
by lkar
Tue Mar 03, 2020 9:34 am
Forum: Investing - Theory, News & General
Topic: The Dark Side of "Stay the Course"
Replies: 202
Views: 16424

Re: The Dark Side of "Stay the Course"

All I am saying is that risking half of what I own is easier to stomach than risking all. $50,000 to me is a decent amount of money. I am fairly certain there are many posters here whose balances swing up and down by that much on a day with just minimal volatility. So saying “but it is still $50,00...
by lkar
Mon Mar 02, 2020 4:18 pm
Forum: Investing - Theory, News & General
Topic: The Dark Side of "Stay the Course"
Replies: 202
Views: 16424

Re: The Dark Side of "Stay the Course"

I started investing in 2010. I never have been tested in a significant, concerning market cycle like the tech bubble or the Great Recession. However, I did my homework and internalized the buy and hold long term investor should expect harrowing times. Odds are if you tune in to the news and try to ...
by lkar
Mon Mar 02, 2020 12:34 pm
Forum: Investing - Theory, News & General
Topic: The Dark Side of "Stay the Course"
Replies: 202
Views: 16424

Re: The Dark Side of "Stay the Course"

Easy to say all this after the fact. Been saying this for months, on this very forum. The uS market was madly overvalued (and still is). Expect a bounce, then a second leg down. It's not rocket science guys. People have been saying the market is madly overvalued for years. Someone will get lucky so...
by lkar
Mon Mar 02, 2020 9:23 am
Forum: Investing - Theory, News & General
Topic: The Dark Side of "Stay the Course"
Replies: 202
Views: 16424

Re: The Dark Side of "Stay the Course"

I really really do genuinely believe it. But the point is that no market ever went up or down because I thought it would. And, most fundamentally, I know enough to know with a good degree of confidence that I don’t know what I don’t know. That is internally inconsistent. If you "believe" but allow ...
by lkar
Sun Mar 01, 2020 10:46 pm
Forum: Investing - Theory, News & General
Topic: The Dark Side of "Stay the Course"
Replies: 202
Views: 16424

Re: The Dark Side of "Stay the Course"

Here’s something for you. I know that stocks are going to get pummeled this week. Absolutely know it. There is so much delusion right now about market impacts and it has been building pressure all weekend. I think the Dow will be down over a thousand points again on Monday again. I don’t just think...
by lkar
Sun Mar 01, 2020 6:13 pm
Forum: Investing - Theory, News & General
Topic: The Dark Side of "Stay the Course"
Replies: 202
Views: 16424

Re: The Dark Side of "Stay the Course"

I started investing in 2010. I never have been tested in a significant, concerning market cycle like the tech bubble or the Great Recession. However, I did my homework and internalized the buy and hold long term investor should expect harrowing times. Odds are if you tune in to the news and try to ...
by lkar
Fri Feb 28, 2020 7:58 pm
Forum: Investing - Theory, News & General
Topic: Percentage Gain/Loss for your Asset allocation during downturn
Replies: 6
Views: 493

Re: Percentage Gain/Loss for your Asset allocation during downturn

Looks like bonds actually did a bit better than tread water. So they made a crappy week just a bit incrementally less crappy.
by lkar
Fri Feb 28, 2020 10:54 am
Forum: Personal Investments
Topic: Should we use the coronavirus drop to do Roth conversion?
Replies: 39
Views: 3217

Re: Should we use the coronavirus drop to do Roth conversion?

Assume one has decided to do a Roth conversion of a certain number of dollars but then the market makes a large move up or down. Sure, the dollar amount of the Roth Conversion is the same. But the percentage of the IRA which got converted to Roth varies with how the market moved. This is me. I won’...
by lkar
Thu Feb 27, 2020 8:28 pm
Forum: Investing - Theory, News & General
Topic: Why do people still try to time the market?
Replies: 72
Views: 5180

Re: Why do people still try to time the market?

I think the single most important factor has only been alluded to in this thread so far. I don't think the answer is that people are dumb. There are very smart market timers. I don't think that market timers are any more greedy than the rest of us. Or at least not all that much. Maybe some. I don't ...
by lkar
Thu Feb 27, 2020 12:02 pm
Forum: Investing - Theory, News & General
Topic: Rebalancing strategy during a market drawdown
Replies: 58
Views: 4005

Re: Rebalancing strategy during a market drawdown

Also - one can't assume a XX% market drop would trigger rebalancing by some formula because it's very unlike one is going to be at their midpoint asset allocation at the beginning of the decline. It's more likely that one will be at the mid-high or high end of their equity allocation band when the ...
by lkar
Thu Feb 27, 2020 11:35 am
Forum: Investing - Theory, News & General
Topic: Rebalancing strategy during a market drawdown
Replies: 58
Views: 4005

Re: Rebalancing strategy during a market drawdown

Hi Ikar: Assume your equities fall by X percent. Let us define x to be X/100. And, let us say your desired allocation is A in equities and 100-A in fixed income, where A is some percentage. Similarly define a = A/100. Lastly, let y be the Y of your post divided by 100. The fraction in equities afte...
by lkar
Thu Feb 27, 2020 10:53 am
Forum: Investing - Theory, News & General
Topic: Rebalancing strategy during a market drawdown
Replies: 58
Views: 4005

Re: Rebalancing strategy during a market drawdown

I would love for someone to post the formula for this for the math challenged. In other words, if you take a particular asset allocation between stocks and fixed income, how do you convert from the percentage by which stocks drop to the effect on your asset allocation. I mean, I can do this myself f...
by lkar
Wed Feb 26, 2020 8:46 pm
Forum: Personal Investments
Topic: What did you learn from the 2/24 sell off?
Replies: 327
Views: 22085

Re: What did you learn from the 2/24 sell off?

1. I intended to illustrate a benefit of buy and hold over market timing with my post. The terms winced and stress are probably a bit too strong, but to time one does have to take action at least twice. These 2 decisions can cause anxiety over whether the trade was executed at the "right" time. Obv...
by lkar
Wed Feb 26, 2020 10:29 am
Forum: Personal Investments
Topic: What did you learn from the 2/24 sell off?
Replies: 327
Views: 22085

Re: What did you learn from the 2/24 sell off?

The market cannot both be efficient, driving things to their all time highs as of last thursday. and then crash all of a sudden incorporating coronavirus now. That is Late. Late. LATE. Of course it can efficient and late. People get new information to add to the previous information, draw new concl...
by lkar
Tue Feb 25, 2020 2:26 pm
Forum: Personal Investments
Topic: What did you learn from the 2/24 sell off?
Replies: 327
Views: 22085

Re: What did you learn from the 2/24 sell off?

I learned that I'm glad I re-balanced a few weeks ago Why? Serious question. When are you going to need the money? Unless the answer is "later this year" you can't possible know at the moment whether the decision to rebalance was a good one or a bad one yet. Or unless you market time on the way up ...
by lkar
Tue Feb 25, 2020 10:36 am
Forum: Personal Finance (Not Investing)
Topic: What's Your Credit Card Rewards Strategy?
Replies: 4647
Views: 897182

Re: What's Your Credit Card Rewards Strategy?

czaj wrote:
Tue Feb 25, 2020 10:29 am
CSR bonus confirmed after spending $4,000. So applying in the 49th month after the CSP bonus posted worked as expected.

Excellent. Thanks very much.
by lkar
Mon Feb 24, 2020 4:21 pm
Forum: Personal Consumer Issues
Topic: Do you ever use cash?
Replies: 228
Views: 13447

Re: Do you ever use cash?

Small tips is pretty much it. And I hate always needing to check if I'm going to have small cash when one of those tipping moments comes up. I accumulate cash though. For some reason some of my regular lunch crew often still want to pay for meals with cash and so I put it all my credit card. In prin...
by lkar
Thu Feb 20, 2020 10:46 am
Forum: Personal Finance (Not Investing)
Topic: 401k options for law firm partner
Replies: 8
Views: 718

Re: 401k options for law firm partner

Not exactly what you are asking but if your income is under the 199A deduction phase out he and you have some important decisions to make now regarding retirement contributions — specifically whether to make roth employee contributions and whether to maximize the deduction by adding income (for exam...
by lkar
Wed Feb 19, 2020 11:12 pm
Forum: Personal Finance (Not Investing)
Topic: HOA violations surviving closing
Replies: 21
Views: 2435

Re: HOA violations surviving closing

Can someone tell me where an HOA gets this power? The HOA doesn't own the property do they? How can an outside group have any say over the actual property owner? You give them the power when you buy the property. The rules (“covenants”) are a restriction on your right to enjoy and use the property,...
by lkar
Wed Feb 19, 2020 10:11 pm
Forum: Personal Investments
Topic: Fidelity Solo 401(k): can’t roll out?
Replies: 5
Views: 361

Re: Fidelity Solo 401(k): can’t roll out?

Once you stop being self employed you can roll the solo assets to a rollover IRA. You may be able to role that in to your 401k depending on your company’s plan As I understand it: Unless an exception applies you are still self employed you cannot take an in-service rollover from your solo 401k befor...
by lkar
Wed Feb 19, 2020 8:20 pm
Forum: Investing - Theory, News & General
Topic: When people set "bonds" as part of their AA, what does that mean
Replies: 23
Views: 1809

Re: When people set "bonds" as part of their AA, what does that mean

Some numbers to give some context. Imagine a fund that holds assets that exceed its liabilities by $1,000,000. That fund's net asset value is $1,000,000 and the value of its stock at that moment in time is $1,000,000 divided by the number of shares outstanding. Let's say 10,000 shares. So, the value...
by lkar
Wed Feb 19, 2020 7:26 pm
Forum: Personal Finance (Not Investing)
Topic: How One POD Beneficiary Can Disclaim Inheritance
Replies: 28
Views: 1659

Re: How One POD Beneficiary Can Disclaim Inheritance

The single most important consideration is the one made by Gill and others that might be getting lost: A disclaiming beneficiary does not get to choose where the money goes. It will go to the place the law says it must go, based on the relevant documents. With respect to taking the money and gifting...
by lkar
Tue Feb 18, 2020 9:36 pm
Forum: Investing - Theory, News & General
Topic: Frequency of rebalancing with new monies
Replies: 6
Views: 410

Re: Frequency of rebalancing with new monies

To me, the issue is how to avoid tinkering. Frequent rebalancing means logging in and paying attention and looking at the balances. This is fine for some people. For me it tempts bad behavior. So the key to me is just to set rules. Even if they are arbitrary. Like I will rebalance on the first weekd...
by lkar
Sat Feb 15, 2020 5:43 pm
Forum: Personal Investments
Topic: I feel my AA is a little high
Replies: 26
Views: 2326

Re: I feel my AA is a little high

I’m 51 I’m close to 75/25 I have stayed the coarse it has worked well. I’m feeling a little heavy if it took a 40% drop. I can trade to some bond funds. Does this make sense? Go to 60/40 I would be coming out of mainly total stock market. What would you recommend for bond with some returns? VBILX V...
by lkar
Wed Feb 12, 2020 11:20 pm
Forum: Personal Finance (Not Investing)
Topic: I'm owed $393; client won't pay; what are my options?
Replies: 45
Views: 5436

Re: I'm owed $393; client won't pay; what are my options?

Might depend on what kind of services Wilma performs. Anything she can be sued over? For malpractice or negligence or anything like that? Is there a possible breach of contract claim? Not asking if there is a valid claim. Just whether the possibility exists. Because deadbeat debtors when pushed into...
by lkar
Wed Feb 12, 2020 8:06 pm
Forum: Personal Investments
Topic: why are triple leveraged ETFs a bad idea?
Replies: 28
Views: 3006

Re: why are triple leveraged ETFs a bad idea?

They are highly leveraged. So, you can lose a lot of value very fast and potentially even all of it. In hindsight, they have been a very good idea during the bull market, though in December-January 2018-9 many were probably tempted to jump ship. A 33 percent drop leaves you with nothing. Leveraged E...
by lkar
Wed Feb 12, 2020 6:33 pm
Forum: Personal Finance (Not Investing)
Topic: Semi-complicated EE Savings Bond tax question
Replies: 9
Views: 713

Re: Semi-complicated EE Savings Bond tax question

I'm not a tax lawyer or accountant but my understanding is that whether the decedent acquired the bonds by inheritance or by purchase does not make a difference with respect to the options available. The accumulated interest can be included on the decedent's return in which case the amount of that i...
by lkar
Wed Feb 12, 2020 8:35 am
Forum: Personal Investments
Topic: moving my AA 75/25 to 50/50 during a recession
Replies: 22
Views: 1548

Re: moving my AA 75/25 to 50/50 during a recession

When do you need the money? If it is in 27 years your strategy should be one with a long term horizon and the numbers that matter are the values now and then. Not any of the numbers between now and then, right? With that kind of horizon selling stocks is something you only want to do if you are conv...
by lkar
Tue Feb 11, 2020 10:31 pm
Forum: Personal Finance (Not Investing)
Topic: What's Your Credit Card Rewards Strategy?
Replies: 4647
Views: 897182

Re: What's Your Credit Card Rewards Strategy?

Cash back portals are great. While everything in the credit card and mileage and travel hacking world has tightened up significantly in the last 10 years, cash back portals remain about the easiest something for nothing thing left in the game. I dont scale it up that big but Rakuten adding membershi...
by lkar
Tue Feb 11, 2020 10:10 pm
Forum: Personal Finance (Not Investing)
Topic: Virtual vs. Physical money
Replies: 26
Views: 1276

Re: Virtual vs. Physical money

I know this is shown in study after study, but I often feel the opposite. Cash is play money. I don't even count cash in hand in my asset allocation (not that we have enough on hand to move the needle). We have a neighbor who insists on reimbursing us for the full price when he borrows any amount o...
by lkar
Tue Feb 11, 2020 7:31 pm
Forum: Personal Consumer Issues
Topic: What is the best concert you ever witnessed?
Replies: 385
Views: 27378

Re: What is the best concert you ever witnessed?

Lot of Springsteen in this thread.

I have many to choose from, but I'll go with the show that has come to be known as the "50th Birthday" show -- 9/24/99 in Philly at the old spectrum.
by lkar
Mon Feb 10, 2020 10:36 pm
Forum: Personal Finance (Not Investing)
Topic: How much money do you want to retire?
Replies: 968
Views: 132231

Re: How much money do you want to retire?

Let's flip this around: I am 40 years old. My wife is 37 years old. Between cash, stocks and bonds I have $2.6mm saved. By the end of 2020 I expect that to be close to $3.4mm. I am in a high-earning phase. My wife makes $225K per year with salary and bonus combined. She already has $1.0mm saved. By...
by lkar
Mon Feb 10, 2020 4:39 pm
Forum: Personal Investments
Topic: Inherited IRA question
Replies: 19
Views: 1291

Re: Inherited IRA question

So, do I have to liquidate this account within 5 years (doing RMDs each year)? You will draw from the account based on your life expectancy as calculated in the single life table. So, you'll take the value on 12/31/2019 and draw the percentage of it you are required to draw based on your life expec...
by lkar
Sun Feb 09, 2020 4:49 pm
Forum: Personal Finance (Not Investing)
Topic: What's Your Credit Card Rewards Strategy?
Replies: 4647
Views: 897182

Re: What's Your Credit Card Rewards Strategy?

What happens with Merrill Lynch if you drop below $100k due to a drop in what you have invested? Do you lose your status? Assuming you are asking about preferred rewards, you keep your status level for 12 months after qualifying. Then they look at your balances and drop you to whatever level your b...
by lkar
Sun Feb 09, 2020 4:35 pm
Forum: Personal Finance (Not Investing)
Topic: Pay RE tax w. cc to get miles, adds 2%, good idea?
Replies: 15
Views: 998

Re: Pay RE tax w. cc to get miles, adds 2%, good idea?

(Your decimal point is off by a factor of 10.) I value AA miles around 1.4 cents so I personally would not pay 1.8 cents for them. Miles valuation is subjective though. If you are 8600 miles short of booking a Q suite on Qatar then those last 8600 miles are valuable. If you use them for a domestic b...
by lkar
Sat Feb 08, 2020 2:23 pm
Forum: Personal Finance (Not Investing)
Topic: Downside to using Cash Back credit cards
Replies: 40
Views: 5067

Re: Downside to using Cash Back credit cards

Some cash back business cards do not affect your score. It is fairly common in the manufactured spending world to split tender across multiple cards and put business cards in the mix for those concerned about credit score fluctuations. Other than possibly having to wait a month if you’re about to do...
by lkar
Fri Feb 07, 2020 8:36 am
Forum: Personal Investments
Topic: Solo401k and form 5500
Replies: 3
Views: 224

Re: Solo401k and form 5500

A minor trap for the unwary that probably won’t apply to most Bogleheads but is important given the possible fines — the 250k threshold applies not just to plan balance as shown in the December 31 statement but to plan assets. Outstanding loans are assets. Many of us have our solo 401k with ETrade, ...
by lkar
Thu Feb 06, 2020 6:58 pm
Forum: Investing - Theory, News & General
Topic: How much will Target date vs 3 fund make a difference in the long run?
Replies: 119
Views: 7605

Re: How much will Target date vs 3 fund make a difference in the long run?

At 22 years old?

The answer is that it doesn't matter.

Actually, it does matter. Is there a choice that you could set up, contribute to automatically, and never look at until you're 50? Because that's the one you should do. Target date is probably easiest for this.