Search found 22 matches

by xavierr
Thu Jun 06, 2019 3:51 am
Forum: Personal Finance (Not Investing)
Topic: Personal Capital Software
Replies: 24
Views: 2089

Re: Personal Capital Software

You can also link your accounts to import your data and then change your password on your broker’s website. Once you change your password, Personal Capital doesn’t have access to your account anymore: the data will stop updating automatically, but any data already in the web app will stay there.
by xavierr
Wed May 22, 2019 4:41 am
Forum: Investing - Theory, News & General
Topic: Don't add currency risk on top of equity risk
Replies: 68
Views: 4771

Re: Don't add currency risk on top of equity risk

I tend to agree that foreign currency risk generally adds risk to a US investor’s portfolio (it’s different for non-US investors). In a bear market, there is a flight to quality: investors sell risky assets to buy non-risky assets. US treasuries rally and so does the US dollar. If you’re holding for...
by xavierr
Mon May 20, 2019 5:24 am
Forum: Personal Investments
Topic: New investor portfolio review & can we afford another baby?
Replies: 15
Views: 1527

Re: New investor portfolio review & can we afford another baby?

Your collective income is above $200k, and you have more than $200k in retirement assets. You can totally afford to have a second child. In my view, it is more of a question of what you value in life: do you want to spend (some of) your money on a second child or on other aspects of your life? Only ...
by xavierr
Mon May 20, 2019 5:09 am
Forum: Personal Investments
Topic: why buy any bonds in your portfolio?
Replies: 24
Views: 3097

Re: why buy any bonds in your portfolio?

Read these two posts by the old and the wise. Bonds rally in a market downturn because 1) there is a flight to quality from stocks to bonds, and 2) because central banks cut rates to stimulate growth. This negative correlation is one of the main reasons pension funds hold bonds. You won’t get that d...
by xavierr
Sat May 18, 2019 9:52 am
Forum: Investing - Theory, News & General
Topic: dividend distributing equity funds vs total return indexes
Replies: 4
Views: 539

Re: dividend distributing equity funds vs total return indexes

They indeed assume dividends are reinvested when reporting returns / benchmarking. That is true for both domestic (e.g. VOO) and international ETFs (e.g VXUS) -- they both pay quarterly dividends: Read the fine print... (2nd footnote): https://advisors.vanguard.com/iippdf/pdfs/FS3369R.pdf https://in...
by xavierr
Fri May 17, 2019 1:20 pm
Forum: Personal Investments
Topic: Near future high earner - getting ready
Replies: 14
Views: 1465

Re: Near future high earner - getting ready

First thing I would do is payback the student loans. You are borrowing at 6% to invest at 2.2%... which is costing you around ~$7.5k / year.
by xavierr
Thu May 16, 2019 5:34 am
Forum: Personal Investments
Topic: Novice question re: modifying portfolio for tax efficiency
Replies: 5
Views: 698

Re: Novice question re: modifying portfolio for tax efficiency

The fund placement you are describing is indeed inefficient according the general principles laid out on the bogleheads wiki. To follow these principles, you would indeed have to sell your funds and restructure your investments. Note however that investors are not always better off following these p...
by xavierr
Thu May 16, 2019 5:19 am
Forum: Personal Investments
Topic: Criticism of my portfolio, please?
Replies: 9
Views: 1130

Re: Criticism of my portfolio, please?

celia wrote:
Wed May 15, 2019 10:17 pm
* If you have earned income of at least $6,000 this year, contribute $6,000 to a Roth IRA, invested in a stock fund, where it can grow tax-free
+1
sounds like you are earning income, so you should make use of tax advantaged accounts to lower the tax burden of your investments.
by xavierr
Thu May 16, 2019 5:06 am
Forum: Non-US Investing
Topic: Currency risk for the long term [Europe]
Replies: 19
Views: 1547

Re: Currency risk for the long term [Europe]

The CAD hedged ETF you are referring to did what it was supposed to, it tracked the S&P 500 in CAD terms and experienced the same drawdown (plus a drag, which seems rather big if your numbers are correct). The point is that, if instead of holding XSP the CAD investor would've held SPY, he would've h...
by xavierr
Wed May 15, 2019 5:16 am
Forum: Non-US Investing
Topic: Currency risk for the long term [Europe]
Replies: 19
Views: 1547

Re: Currency risk for the long term [Europe]

The numbers in the article look OK to me. It compares the returns on the S&P 500 in USD vs the returns on USDCAD during periods of market weakness (i.e. large drawdowns). In particular during the period you are referring to (Oct-2007 to Mar-2009), the S&P 500 had a total drawdown of -56.8% (~1561 to...
by xavierr
Tue May 14, 2019 12:16 pm
Forum: Personal Investments
Topic: Should I leave Betterment?
Replies: 33
Views: 5455

Re: Should I leave Betterment?

I may be missing something, but I agree with the posters who suggest you should pay back your student loans at 3% and 4.8% before allocating any percentage to bonds. You are effectively borrowing at an average rate close to 4% to invest in risk free bonds with rates of less than 3%, and credit risky...
by xavierr
Tue May 14, 2019 5:43 am
Forum: Non-US Investing
Topic: Currency risk for the long term [Europe]
Replies: 19
Views: 1547

Re: Currency risk for the long term [Europe]

This article by Gard Capital is well written and explains why Canadians shouldn’t necessarily hedge the currency risk of their US stock. I trade FX derivatives at a broker-dealer (i.e. the instruments used for currency hedging), and I know for a fact that some of the biggest Canadian pension funds h...
by xavierr
Fri May 10, 2019 5:35 am
Forum: Personal Investments
Topic: Best/Automated way for 3 ETF portfolio in Taxable account
Replies: 13
Views: 1043

Re: Best/Automated way for 3 ETF portfolio in Taxable account

For those who are interested, here's an article from last week that does a great job at describing the tax efficiency of Vanguard mutual funds. Vanguard Patented a Way to Avoid Taxes on Mutual Funds By Zachary R. Mider, Annie Massa and Christopher Cannon May 1, 2019 https://www.bloomberg.com/graphic...
by xavierr
Fri May 10, 2019 4:56 am
Forum: Personal Investments
Topic: tax efficient lazy portfolio strategies
Replies: 12
Views: 1865

Re: tax efficient lazy portfolio strategies

The three fund portfolio used by many investors on this blog can be allocated in a tax efficient way to your different accounts (tax-advantaged & taxable). Eg. read the following thread and wiki page for more information on tax-efficient allocation in the different accounts: https://www.bogleheads.o...
by xavierr
Thu May 09, 2019 3:41 pm
Forum: Personal Investments
Topic: Wealthfront lock-in (Direct Indexing) - leave and take the tax hit now, wait, or other strategy?
Replies: 12
Views: 1461

Re: Wealthfront lock-in (Direct Indexing) - leave and take the tax hit now, wait, or other strategy?

Great post there LegendaryRed. I learned a lot from your detailed analysis. If you ask me, you certainly seem knowledgeable enough to take full control of your investments. In your case, I don’t think Betterment will ever add 25 bps worth of value to you. I agree with the general consensus to liquid...
by xavierr
Thu May 09, 2019 5:26 am
Forum: Personal Investments
Topic: Received A Windfall. Looking to Reinvest It.
Replies: 8
Views: 1478

Re: Received A Windfall. Looking to Reinvest It.

Lucky you! For the portion reserved for taxes, short term muni bonds can indeed be a good fit: you are saving for short term cash needs and are in a high tax bracket (at least this year!). Read more about munis on the Bogleheads wiki if you’re not sure. Munis may also be a good fit for your emergenc...
by xavierr
Tue May 07, 2019 5:39 am
Forum: Personal Investments
Topic: Voya financial - Why would anyone use them?
Replies: 40
Views: 3931

Re: Voya financial - WHY WOULD ANYONE USE THEM?

If your wife's retirement plan is not designed to be in the best interest of the employees, she can lobby for a better plan. That's the only way to make things change. Many threads/articles give suggestions on how to do that: https://www.bogleheads.org/wiki/How_to_campaign_for_a_better_401(k)_plan h...
by xavierr
Tue May 07, 2019 5:20 am
Forum: Investing - Theory, News & General
Topic: Market Timing to get out of Expensive Funds - Would you?
Replies: 16
Views: 1352

Re: Market Timing to get out of Expensive Funds - Would you?

One of the main premises of this forum is that it is very difficult to time the market and that investment decisions should be systematic and unemotional. Your assessment makes sense (get out of expensive value-tilted ETFs and simplify your portfolio). I would not wait to implement it, just as I wou...
by xavierr
Tue May 07, 2019 4:59 am
Forum: Personal Investments
Topic: International Fixed Income
Replies: 11
Views: 1041

Re: International Fixed Income

These two threads are quite recent and thorough:
viewtopic.php?t=274097
viewtopic.php?t=260870
by xavierr
Mon May 06, 2019 5:55 am
Forum: Personal Investments
Topic: Future plan evaluation - thoughts?
Replies: 16
Views: 1091

Re: Future plan evaluation - thoughts?

I see. Doing all that with multiple accounts would seem like an accounting nightmare 😂 I have been investing for 10+ years, mostly individual stocks many years ago. Eg - owned fb at $30, Amazon at $235, Tesla $80 etc. I made the mistake of selling too early for smaller amounts of profit. But a lot ...
by xavierr
Sun May 05, 2019 7:46 pm
Forum: Personal Investments
Topic: Future plan evaluation - thoughts?
Replies: 16
Views: 1091

Re: Future plan evaluation - thoughts?

Your overall strategy makes sense for the long run, but I agree with btenny that it’s sensible to limit the number of ETFs to reduce complexity / make it easier to see clearly in your investments -- especially at first. Also, given the info you posted, it'll take a few years before the SPIC limit b...
by xavierr
Sun May 05, 2019 3:32 pm
Forum: Personal Investments
Topic: Future plan evaluation - thoughts?
Replies: 16
Views: 1091

Re: Future plan evaluation - thoughts?

Your overall strategy makes sense for the long run, but I agree with btenny that it’s sensible to limit the number of ETFs to reduce complexity / make it easier to see clearly in your investments -- especially at first. Also, given the info you posted, it'll take a few years before the SPIC limit be...