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by baw703916
Sat Mar 02, 2019 8:23 pm
Forum: Personal Investments
Topic: Opportunity zone fund investing - opinions?
Replies: 9
Views: 1800

Re: Opportunity zone fund investing - opinions?

whodidntante wrote: Sat Mar 02, 2019 8:16 pm It's a new thing and is attracting a lot of people trying to exploit the opportunity on both sides. Do due diligence before investing in an OZ fund. As of today, I think I'll just realize capital gains and pay the tax. I might change my mind later.

Can't argue with that--it not like any fund in this space is going to have a track record, so caveat emptor.
by baw703916
Sat Mar 02, 2019 8:06 pm
Forum: Personal Investments
Topic: Opportunity zone fund investing - opinions?
Replies: 9
Views: 1800

Re: Opportunity zone fund investing - opinions?

My accountant recently suggested this is something I might wish to consider to defer some capital gains. I'm quite skeptical, but thought I'd search the board.

So are such funds something a Boglehead who is qualified and would benefit from the capital gains deferral (e.g. they might have realized a large capital gain in a particular year for whatever reason) might reasonably consider? Or are they terrible investment vehicles made slightly more palatable by the tax advantage?
by baw703916
Fri Aug 03, 2018 1:03 pm
Forum: Investing - Theory, News & General
Topic: STIP (Short Term TIP) yield vs TIP
Replies: 17
Views: 4378

Re: STIP (Short Term TIP) yield vs TIP

Remember also the real yield of a TIPS is a guess. The market sets the prices and yields of *nominal* instruments (where the nominal yield is exactly known) and then guesses as to the right real rate. The difference is the breakeven inflation rate. I think you meant to say "the nominal yield of TIPS is a guess" but I see your point. I guess if you really had to call it a risk, it would be "reinvestment rate risk" (when your 5 year TIPS matures, you might have to reinvest at a lower rate, whilst if you'd bought a 30 year TIPS at the same rate, it would still be locked in). Still, if we believe that the market for Treasuries/TIPS is efficient, and there are no ideosyncracies to be exploited, then it just comes down to min...
by baw703916
Thu Aug 02, 2018 7:50 pm
Forum: Investing - Theory, News & General
Topic: STIP (Short Term TIP) yield vs TIP
Replies: 17
Views: 4378

Re: TIPS yield curve and fund choice

But since the entire yield curve is under 1%, how much can rates go down?
by baw703916
Thu Aug 02, 2018 7:34 pm
Forum: Investing - Theory, News & General
Topic: STIP (Short Term TIP) yield vs TIP
Replies: 17
Views: 4378

TIPS yield curve and fund choice

[Thread merged into here, see below. --admin LadyGeek] So as of today, per Bloomberg , the interest rate on a 5 year TIPS is 0.85%, while for a 30 year TIPS it's 0.97%. That's right--12 bp of difference for extending duration by 25 years. I would argue that in this circumstance, it makes no sense for anyone to own VIPSX (Vanguard's "original" TIPS fund). Instead, buy the short term TIPS index fund: 1. Since the broad TIPS fund isn't technically an index fund (I've been scratching my head about that for years) there's a $50K minimum for Admiral shares, and no ETF share class. 2. The short term index fund has a $10K Admiral minimum, and also an ETF share class with the same E/R as the Admiral class. 3. The E/R for the short term fu...
by baw703916
Wed Jul 04, 2018 6:26 pm
Forum: Personal Consumer Issues
Topic: Drinking, Fast and Slow: A Behavioral Scientist’s Guide To Summer Cocktails
Replies: 9
Views: 2446

Re: Drinking, Fast and Slow: A Behavioral Scientist’s Guide To Summer Cocktails

Nestegg_User wrote: Tue Jul 03, 2018 10:25 pm
baw703916 wrote: Tue Jul 03, 2018 7:50 pm Cheers, Victoria!

I think I'll enjoy an Anchor Steam (ok, I know, not technically a cocktail!) while I contemplate which holdings I refuse to sell until I can do so at a profit!
I believe that the behavioral scientists call that “Anchoring” :beer

Yes they do...and I think it deserves the accompaniment of an appropriately-named beverage! :sharebeer
by baw703916
Tue Jul 03, 2018 9:19 pm
Forum: Personal Finance (Not Investing)
Topic: Thoughts on Healthcare Sharing?
Replies: 51
Views: 6581

Re: Thoughts on Healthcare Sharing?

Healthcare sharing is how the Amish community has always approached medical care. By and large, it's worked pretty well for centuries.

But here's where it hits the wall:

https://www.statnews.com/2018/05/08/lux ... ice-amish/
by baw703916
Tue Jul 03, 2018 7:50 pm
Forum: Personal Consumer Issues
Topic: Drinking, Fast and Slow: A Behavioral Scientist’s Guide To Summer Cocktails
Replies: 9
Views: 2446

Re: Drinking, Fast and Slow: A Behavioral Scientist’s Guide To Summer Cocktails

Cheers, Victoria!

I think I'll enjoy an Anchor Steam (ok, I know, not technically a cocktail!) while I contemplate which holdings I refuse to sell until I can do so at a profit!
by baw703916
Fri Jun 08, 2018 10:51 pm
Forum: Investing - Theory, News & General
Topic: Why Edward Jones?
Replies: 92
Views: 23568

Re: Why Edward Jones?

livesoft wrote: Thu Jan 04, 2018 3:24 pm It is also possible the the EJ person also is the pastor of the church.
So, it's not really a load, but rather a tithe? :P
by baw703916
Tue May 15, 2018 10:53 pm
Forum: Investing - Theory, News & General
Topic: John C. Bogle explains his interpretation of RTM (reversion to mean)
Replies: 11
Views: 4182

Re: John C. Bogle explains his interpretation of RTM (reversion to mean)

This makes sense. In gambling, assuming a non-biased coin/dice/roulette table/etc. each event has no time correlation with past or future events. So if you flip a coin heads 5 times in a row, the expectation value of the next flip remains 50% heads.

But if a certain category of equities has a price appreciation greater than the overall market, then the valuation ratios relative to the rest of the market must necessarily increase (unless profits are also growing faster than everything else). Since higher valuations are about the only thing known to have a negative correlation with future return, it makes sense that return to mean implies a negative bias, not just an independent random probability.
by baw703916
Sun May 06, 2018 6:12 pm
Forum: Investing - Theory, News & General
Topic: Warren Buffet Empire in One Giant Chart
Replies: 11
Views: 4075

Re: Warren Buffet Empire in One Giant Chart

NoHeat wrote: Tue May 01, 2018 11:53 pm ...reinsurance doesn’t sell its product to retail customers and it doesn’t employee many, so it is overlooked by popular press stories that can choose instead to mention GEICO and Dairy Queen.

I am looking forward to going to the annual meeting again this weekend. I’ve been going regularly since 2002. And that’s nothing — two years ago I saw an old fellow there who said he owned Berkshire shares before Buffet bought it.
Agreed. It's just that retail or not, given the prominence of reinsurance on Berkshire's balance sheet and income statement, it seems like a pretty big oversight to not mention it.

Hope you are having a good weekend at the annual meeting!
by baw703916
Sun May 06, 2018 6:02 pm
Forum: Personal Investments
Topic: E-Trade ETF equivalent for VTSAX (Vanguard Total Stock Market Index Fund Admiral Shares)?
Replies: 10
Views: 6539

Re: E-Trade ETF equivalent for VTSAX (Vanguard Total Stock Market Index Fund Admiral Shares)?

Is there a reason not to just buy VTI, the ETF share class of Vanguard Total Stock Market? It has the same E/R as the VSTAX Admiral share class. For what it's worth I own it in my E-Trade account, and yes, you can set up automatic dividend reinvestment.
by baw703916
Tue May 01, 2018 10:08 pm
Forum: Personal Investments
Topic: When to sell individual stock following merger announcement?
Replies: 22
Views: 2841

Re: When to sell individual stock following merger announcement?

After being more volatile than I would have expected the past couple weeks, the price of the company being acquired jumped substantially this morning (to >99% of the takeover price) and my sell order executed. In reading the new items, this coincided with the ending of the Hart Scott Rodino waiting period. So apparently the major risk perceived by the market of the deal not going through was the government objecting, which as of today, didn't happen.

FYI, the company is AveXis (AVXS).
by baw703916
Tue May 01, 2018 9:54 pm
Forum: Investing - Theory, News & General
Topic: Warren Buffet Empire in One Giant Chart
Replies: 11
Views: 4075

Re: Warren Buffet Empire in One Giant Chart

Where did reinsurance go?
by baw703916
Thu Apr 12, 2018 8:42 pm
Forum: Personal Investments
Topic: When to sell individual stock following merger announcement?
Replies: 22
Views: 2841

Re: When to sell individual stock following merger announcement?

A couple clarifications. 1) I regarded the investment in the company that's getting taken over as a semi-unique opportunity (a rare case where I have good reason to believe I "know more than the market"). That's not true of the acquiring company--there's no reason to thing I have any more insight into Big Pharma than all of the professional analysts out there. So after the deal closes (or after I sell it before then) I'll just put it in one of the index funds in my Roth. 2) I don't think the examples cited of deals not going through for defense contractors or between two established companies in a given sector, are really applicable to this situation. The acquiree doesn´t even have a product on the market yet (biotech is a pretty ...
by baw703916
Thu Apr 12, 2018 5:54 pm
Forum: Investing - Theory, News & General
Topic: Stock market investors on higher floors take more risks
Replies: 13
Views: 2508

Re: Stock market investors on higher floors take more risks

Rick Ferri wrote: Wed Apr 11, 2018 11:27 am What about those who serve in our Navy’s submarine fleet?
Hopefully, they're taking advantage of the TSP, with a generous helping of the G Fund. :)
by baw703916
Thu Apr 12, 2018 11:50 am
Forum: Personal Investments
Topic: When to sell individual stock following merger announcement?
Replies: 22
Views: 2841

Re: When to sell individual stock following merger announcement?

Thanks everyone for the replies!

What's kind of interesting is the market price of the stock has actually fluctuated more than I might have expected this week (a couple %). Since there's no actual news regarding the merger and as Grt2bOutdoors observes, it seems pretty likely to happen, my guess is the price fluctuations are largely due to turnover--some people want to cash out their gains, others want to play the merger arbitrage card.

What I've done for the moment is to set a limit order for just under 99% of the takeover price, so if it executes, I would get some of the arbitrage relative to the current market price. It hasn't executed yet--I'll post again when it does or if anything changes.
by baw703916
Wed Apr 11, 2018 8:03 pm
Forum: Personal Investments
Topic: When to sell individual stock following merger announcement?
Replies: 22
Views: 2841

Re: When to sell individual stock following merger announcement?

Pajamas wrote: Wed Apr 11, 2018 7:37 pm If it's Verifone, you should consider holding on until May 24th in case someone else makes a better offer, although the slight discount indicates that the market thinks that unlikely.
It's actually not that one, it's a biotech being acquired by a Big Pharma company. It doesn't appear the merger would be blocked at least for antitrust reasons. Apparently the acquiring company has the cash already for the acquisition. Of course any transaction could fall apart until it actually happens, but this one seems pretty likely to go through.
by baw703916
Wed Apr 11, 2018 7:51 pm
Forum: Personal Investments
Topic: When to sell individual stock following merger announcement?
Replies: 22
Views: 2841

Re: When to sell individual stock following merger announcement?

frickshin wrote: Wed Apr 11, 2018 7:31 pm Good podcast from the White Coat Investor on this topic.

https://www.whitecoatinvestor.com/merge ... odcast-43/
Thanks for posting the link! Although I'm more the counterparty from whom Dr. Steinberg (the guest featured in the podcast) might buy stock following the merger announcement. I'm not planning to make merger arbitrage a theme in my portfolio, and I don't have anyway to diversify away the ~5% risk Dr. Steinberg quotes of the deal not closing. I just thought this company had potentially a very bright future--apparently, the acquiring company thought so too!
by baw703916
Wed Apr 11, 2018 7:30 pm
Forum: Personal Investments
Topic: When to sell individual stock following merger announcement?
Replies: 22
Views: 2841

When to sell individual stock following merger announcement?

So several months ago I made a small investment in an individual stock (note: <1% of my portfolio, which is 95+% index funds). Recently, the company announced an agreement for a cash takeover by another company for roughly double the recent trading range. No, I'm not eschewing index funds! My question is whether to sell now, wait until the deal closes (the estimate given in the announcement suggested ~3 months), or set some target price between the current price (about 97% of the takeover price) and the takeover price and put in a 60 day limit order to sell? Since the shareholders will be paid cash when the deal closes, the upside is strictly limited. Of course, the deal could be derailed by unforeseen circumstances, which probably accounts...
by baw703916
Fri Mar 30, 2018 7:59 pm
Forum: Investing - Theory, News & General
Topic: The "American companies I invest in already have international exposure" argument --- valid or not?
Replies: 139
Views: 17689

Re: The "American companies I invest in already have international exposure" argument --- valid or not?

DanMahowny wrote: Fri Mar 30, 2018 7:31 pm I don't buy that argument.

Jack Bogle is wrong.

Of course, I could be wrong. I'm wrong often- just ask my wife.
So, does your wife think Jack Bogle is wrong?
by baw703916
Mon Mar 26, 2018 3:46 pm
Forum: Investing - Theory, News & General
Topic: Seven-Year Investor Old Beats Harvard’s Endowment Fund
Replies: 21
Views: 3916

Re: Seven-Year Investor Old Beats Harvard’s Endowment Fund

There will always be some number of seven-year olds who outperform by luck. 8-)
by baw703916
Wed Mar 21, 2018 5:30 pm
Forum: Personal Consumer Issues
Topic: SE Washington DC job - where to live?
Replies: 55
Views: 5823

Re: SE Washington DC job - where to live?

I worked for many years just south of Anacostia-Bolling (until about 2 years ago). I lived in Alexandria, and my commute was about 30 minutes--you can shorten it considerably by living closer. 1) The dominant traffic flow on the Wilson Bridge in the morning is into Virginia, and out of Virginia in the evening (the opposite direction from the bridges further north). So crossing the bridge and then going up 295 is against the flow of traffic until maybe the last mile. 2) That part of DC isn't very well served by public transportation, although maybe the Anacostia metro is close to where she will be? However this might not be a good idea if she will be working something other than typical work hours. 3) The Wilson Bridge, adjacent portions of ...
by baw703916
Sat Mar 10, 2018 5:47 pm
Forum: Personal Investments
Topic: Question about transferring and SEC IRA to a Roth IRA
Replies: 3
Views: 523

Re: Question about transferring and SEC IRA to a Roth IRA

I assume you meant to say "SEP" IRA (SEP stands for Simplified Employee Pension--it's often used for retirement contributions from self employment income or from a very small company). The short answer is you can convert it to a Roth IRA--I've done exactly that. It is perfectly possible to have a low-cost, diversified, passive portfolio at Vanguard, Schwab, Fidelity, TD Ameritrade, or a number of other places--the decision of whether to transfer it to Vanguard or just convert to a Roth at Schwab is entirely one of your personal preference. It will be easier, I'm sure, to just set up a Roth IRA at Schwab and then convert the SEP--you shouldn't even have to liquidate your holdings. Be aware that, because you got to deduct your contr...
by baw703916
Fri Feb 16, 2018 11:11 pm
Forum: Personal Consumer Issues
Topic: Mixing fuel octanes for cars
Replies: 57
Views: 6019

Re: Mixing fuel octanes for cars

1. Going beyond the octane requirements of your engine doesn't convey any additional benefit. Going below the requirements isn't recommended!
2. The way that the octane rating is defined means that the octane value of a mixture of fuels is just the weighted average (what an octane rating of X means is that the fuel has the same tendency to knock as a mixture of X% 2,2,4-trimethylpentane and 100-X% n-heptane). So yes, the approach outlined in the OP will work (assuming everything is well mixed).
by baw703916
Tue Feb 13, 2018 8:25 pm
Forum: Personal Investments
Topic: Deciding Between Treasuries and Munis in Taxable
Replies: 16
Views: 3838

Re: Deciding Between Treasuries and Munis in Taxable

Are there any other reasons why having an increased AGI (due to the interest on the Treasuries) might be undesirable? For example, not being able to make a Roth contribution. That's one thing that isn't accounted for in the equivalent yields math.
by baw703916
Thu Feb 08, 2018 10:41 pm
Forum: Investing - Theory, News & General
Topic: "The stock market is officially in a correction... here's what usually happens next"
Replies: 83
Views: 17387

Re: "The stock market is officially in a correction... here's what usually happens next"

What usually happens next is a lot of hyperventilating. Even on this board, though to a lesser extent.
by baw703916
Thu Feb 08, 2018 7:17 pm
Forum: Investing - Theory, News & General
Topic: Thrift Savings Plan to Change I Fund Index
Replies: 54
Views: 10028

Re: Thrift Savings Plan to Change I Fund Index

I'd somehow missed this when it was first posted.

Great news! Good job, FRTIB. :happy
by baw703916
Wed Feb 07, 2018 9:57 pm
Forum: Investing - Theory, News & General
Topic: Spread between taxable and tax-exempt bond yields returning to normal
Replies: 1
Views: 919

Spread between taxable and tax-exempt bond yields returning to normal

Something interesting is happening in bond yields: after about a decade, the relative yields between tax-exempt and taxable bonds are returning to normal. Normally, one would expect that tax-exempt bonds would have lower yields than taxable ones, all else being equal, due to the tax benefit. This is the basis for the conventional wisdom of "stocks in taxable, bonds in tax-advantaged". However, the most commonly cited paper which made this conclusion made the categorical assumption that the "muni-treasury ratio" (commonly defined as the ratio of yields between 10 year AAA rated general obligation munis and 10 year Treasuries) is always equal to its historical average of 0.8. That wasn't the case between roughly 2007 and 2...
by baw703916
Fri Jan 26, 2018 11:14 pm
Forum: Investing - Theory, News & General
Topic: Do Alpha Males Deliver Alpha? Testosterone and Hedge Funds
Replies: 16
Views: 2282

Re: Do Alpha Males Deliver Alpha? Testosterone and Hedge Funds

triceratop wrote: Fri Jan 26, 2018 5:54 pm It seems patently crazy and absurd! But I've been lead to believe and heard many tales confirming that many humans do precisely this under a complex system known as "dating".
There hasn't been an equivalent of Bogle to offer indexing as a simpler and more profitable approach!
by baw703916
Thu Jan 25, 2018 7:43 pm
Forum: US Chapters
Topic: Happy Birthday, Taylor!
Replies: 84
Views: 9000

Re: Happy Birthday, Taylor!

Happy Birthday Taylor!!

Thanks for teaching many people important lessons about successful investing.
by baw703916
Wed Jan 24, 2018 10:19 pm
Forum: Investing - Theory, News & General
Topic: Any logic to picking multiple target date funds?
Replies: 27
Views: 5594

Re: Any logic to picking multiple target date funds?

I actually am using two different "L Funds" in my TSP account (L funds = TSP version of target date funds).

Technically only one actually has a date: L2030 (about when I'll be retirement age).

Until recently, I had much of the rest of my TSP in the G fund (I distribute assets over several types of accounts). I decided to change to switch from G to L income (which is about 75% bonds--mostly G fund, but holds some stocks and is autorebalancing).

Part of the rationale of doing this is I can't really rebalance myself on a daily basis, but the L income does that for me.
by baw703916
Mon Jan 22, 2018 12:32 am
Forum: Investing - Theory, News & General
Topic: Vanguard opens special offices for $1 million clients
Replies: 131
Views: 41148

Re: anguard opens special offices for $1 million clients

Interesting... Although personally, I've never even called Vanguard on the phone. Everything has been accomplished online or in the mail. Unless they're going to offer a place where I can make cash deposits, medallion signature guarantees on securities, or free coffee/pastries while I chat with a rep. ... I'm not sure what else would draw me in to a physical office. 'Customer service' is important, but it was not a key factor in my decision to go with Vanguard. In fact, I fully acknowledged that Vanguard wasn't big into hand-holding through the investment process, and I wanted to avoid the unsolicited 'advice'/sales that often comes with places known for having better 'customer service'. Free coffee and pastries? OK, you have my attention....
by baw703916
Sun Jan 21, 2018 3:54 pm
Forum: Investing - Theory, News & General
Topic: "Why You Should Probably Just Give Up Trying To Beat The Stock Market"
Replies: 19
Views: 4290

Re: "Why You Should Probably Just Give Up Trying To Beat The Stock Market"

Dottie57 wrote: Sun Jan 21, 2018 9:43 am Me too. It was a family ritual to watch the show. I never really understood what he said and the market remained magical.
Where are the elves' yachts? :twisted:
by baw703916
Sun Jan 21, 2018 2:20 am
Forum: Investing - Theory, News & General
Topic: "The Pain of Discipline or the Pain of Regret?"
Replies: 33
Views: 5481

Re: "The Pain of Discipline or the Pain of Regret?"

2008 was a financial panic, but not an unprecedented one, and putting things in perspective a little bit made things pretty easy to deal with. Better man then me. I found it extremely stressful, but since I was young (still think I am) I knew it didn't matter in the long run. I would say those that did not lose a job may have found it as no big deal and those that did found it a BIG deal. So in the end it is NOT what the stock market is doing, but if you know a paycheck is still coming at the end of the month to pay the mortgage and buy food for the family that makes it stressful to invest. Good luck. Admittedly, I was fortunate in those aspects. At the time I had a safe (government) job, no dependents, and a house I'd bought ten years ear...
by baw703916
Sat Jan 20, 2018 9:49 pm
Forum: Investing - Theory, News & General
Topic: "Why You Should Probably Just Give Up Trying To Beat The Stock Market"
Replies: 19
Views: 4290

Re: "Why You Should Probably Just Give Up Trying To Beat The Stock Market"

My problem with this article is it doesn't differentiate between active and passive strategies--it just says "mutual funds". I mean, Vanguard's TSM is a mutual fund. And, because it should closely mirror the performance of the market every year, while most funds will lag due to expenses, I'd expect VTSAX to be in the top 50% of mutual fund pretty much every year (it will never be in the top 10%, but neither will be much of anything else!)

If he's recommending a passive strategy, why doesn't he come out and say it in this column? It never mentions the words "index" or "passive"!
by baw703916
Sat Jan 20, 2018 7:34 pm
Forum: Investing - Theory, News & General
Topic: "The Pain of Discipline or the Pain of Regret?"
Replies: 33
Views: 5481

Re: "The Pain of Discipline or the Pain of Regret?"

Sometimes I wonder if these people are living on a different planet. 2008-09, 2011, and 15-16 weren't that emotionally stressful. Bogleheads and EMH provided me with a framework for putting things in context. 2008 was a financial panic, but not an unprecedented one, and putting things in perspective a little bit made things pretty easy to deal with.

Remember, the market had four more very good years after Alan Greenspan proclaimed "irrational exuberance". So maybe we are in a euphoric state, but that doesn't mean it's going to end in the near future.

Stay your course, rebalance as needed, and reassess your need and ability to take risk as your circumstances change.
by baw703916
Tue Dec 12, 2017 8:33 pm
Forum: Personal Investments
Topic: Portfolio advice: Total market vs Larry Portfolio
Replies: 45
Views: 6705

Re: Oldest Multi-Factor Fund

Taylor Larimore wrote: Tue Dec 12, 2017 8:13 pm

The oldest multi-factor fund of which I am aware is PNC Multi-Factor Small-Cap Value C (PSVCX).

According to Morningstar, its annualized 15-year return was 7.32%. During the same period, The S&P 500 Index return was 9.72% (with lower Standard Deviation).
Taylor,

I really don't think that's a fair comparison--PSVCX is an actively-managed fund with a load and an expense ratio above 2%. On these grounds alone, nobody should buy it, whether they favor total market, slide and dice, or the Larry portfolio!

The 15 year annualized return for the Vanguard SV index fund (VISVX) is 11.1%. So I think the conclusion is to avoid high fees, not small value.
by baw703916
Sat Dec 02, 2017 6:38 pm
Forum: Investing - Theory, News & General
Topic: What did you do right?
Replies: 96
Views: 13555

Re: What did you do right?

I never bought a $5000 watch, in spite of the extreme peer pressure. ;)
by baw703916
Thu Nov 30, 2017 9:27 pm
Forum: Investing - Theory, News & General
Topic: Jack Bogle Says ‘Avoid Bitcoin Like the Plague’
Replies: 324
Views: 48711

Re: Jack Bogle Says ‘Avoid Bitcoin Like the Plague’

VictoriaF wrote: Thu Nov 30, 2017 9:15 pm Bitcoin is a ledger that contains a record of all transactions since its inception.

Victoria
Which makes it a little puzzling why hackers would demand payment for ransomeware in bitcoins. It's kind of like bank robbers stealing a bunch of marked bills.
by baw703916
Wed Nov 29, 2017 11:15 pm
Forum: Investing - Theory, News & General
Topic: What did you do right?
Replies: 96
Views: 13555

Re: What did you do right?

It seems that on this thread, something like half of the replies make reference to "marry the right person".

So how is this actually implemented? Is there an equivalent of John Bogle to make everything simple, or is it just dumb luck? Seems a lot more complicated than just calling up Vanguard, taking a risk tolerance quiz, and choosing a three-fund portfolio!

(my question is semi-tongue in cheek, but also somewhat serious. Great if that happens for you, but is there any strategy involved?)
by baw703916
Wed Nov 22, 2017 12:08 pm
Forum: Investing - Theory, News & General
Topic: Minimizing capital gains assuming FIFO basis
Replies: 26
Views: 3747

Re: Minimizing capital gains assuming FIFO basis

livesoft wrote: Wed Nov 22, 2017 6:17 am
libralibra wrote: Wed Nov 22, 2017 3:24 am You could quickly complete your non-FIFO tax loss harvesting now, before you have to make that "assumption".
Folks should complete their tax-loss harvesting each year anyways. Indeed, with prices where they are today, there should be no tax-loss harvesting opportunities at the present time.
That is my situation. I guess lacking TLH opportunities because one's portfolio has increased in value so much isn't the worst problem one can have! :beer
by baw703916
Wed Nov 22, 2017 11:57 am
Forum: Investing - Theory, News & General
Topic: Minimizing capital gains assuming FIFO basis
Replies: 26
Views: 3747

Re: Minimizing capital gains assuming FIFO basis

Thanks for the link Doc. And thanks to everyone for the thoughts given so far.
by baw703916
Tue Nov 21, 2017 9:48 pm
Forum: Investing - Theory, News & General
Topic: Minimizing capital gains assuming FIFO basis
Replies: 26
Views: 3747

Re: Minimizing capital gains assuming FIFO basis

For DCA during an investors accumulation phase, what would be your fund rotation strategy? I could envision things like the following: Option #1: rotate between different similar funds for each scheduled purchase Option #2: stick to one fund for a period if time (e.g for a year), then start using the next one in the list. Option #3: only switch to the next fund in the list when the purchase cost basis is different enough from existing cost basis (eg 10% or so) You'd have to weigh if the increased transaction costs, higher ERs, and higher complexity justify the potential tax benefits. (Edited for spelling) I think #3 makes the most sense. For some asset classes, there are a limited number of good fund options (US large cap core being an exc...
by baw703916
Tue Nov 21, 2017 9:26 pm
Forum: Investing - Theory, News & General
Topic: Minimizing capital gains assuming FIFO basis
Replies: 26
Views: 3747

Re: Minimizing capital gains assuming FIFO basis

livesoft wrote: Tue Nov 21, 2017 9:17 pm
baw703916 wrote: Tue Nov 21, 2017 8:42 pmOne is using FIFO, not average cost. :)
To me First-In, First-out identifies the shares sold and NOT the Cost Basis Method. For mutual fund (but not stocks and not ETFs), the First-In shares could have a cost basis method of Average Cost or Actual Cost. Stocks and ETFs must use Actual Cost no matter which shares are sold.

See this post: viewtopic.php?p=3626529#p3626529
Ok, gotcha. Although in my case my equity holdings in taxable accounts consist almost completely of ETFs. So the average cost thing might not help me a lot. Thanks.
by baw703916
Tue Nov 21, 2017 8:42 pm
Forum: Investing - Theory, News & General
Topic: Minimizing capital gains assuming FIFO basis
Replies: 26
Views: 3747

Re: Minimizing capital gains assuming FIFO basis

livesoft wrote: Tue Nov 21, 2017 8:36 pm If one is using Average Cost and has purchased shares recently at a higher price than the First In shares, then that will help minimize capital gains. Otherwise, sell fewer shares which will also minimize capital gains.
One is using FIFO, not average cost. :)
by baw703916
Tue Nov 21, 2017 8:35 pm
Forum: Personal Finance (Not Investing)
Topic: Help DW gets fired, but then next day her boss offers her job back
Replies: 156
Views: 19814

Re: Help DW gets fired, but then next day her boss offers her job back

I'd say offer to come back but no reduction in pay.

If they can't accommodate that, too bad! :twisted:

Look for another job in any event.
by baw703916
Tue Nov 21, 2017 8:22 pm
Forum: Investing - Theory, News & General
Topic: Minimizing capital gains assuming FIFO basis
Replies: 26
Views: 3747

Minimizing capital gains assuming FIFO basis

If one is using FIFO cost basis, what is the best way to minimize capital gains in taxable accounts (e.g. if rebalancing)?

Please don't ask why the question assumes FIFO. Just assume it does.

It seems to me that one would want to own several similar funds (e.g. Vanguard 500 index, Vanguard Large Cap index, SPY, etc.) so that one has a backdoor way of doing individual lots (by choosing which of the similar holdings to sell), while still nominally using FIFO. Yeah, it completely violates the simplicity mantra, but you can't have everything.

Thoughts?

Again, I can't explain the rationale for this question. PM me if you really, really must know.
by baw703916
Tue Nov 21, 2017 8:10 pm
Forum: Investing - Theory, News & General
Topic: "Got $1 million to retire? Here’s how long it will last, by U.S. state"
Replies: 54
Views: 17105

Re: "Got $1 million to retire? Here’s how long it will last, by U.S. state"

VictoriaF wrote: Tue Nov 21, 2017 8:01 pm I like the picture of retired people in the beginning of the article!

Victoria
Will $1 million buy you a Wayback Machine to the 1950s? :D
by baw703916
Mon Nov 20, 2017 10:42 pm
Forum: Investing - Theory, News & General
Topic: Larry Swedroe: Managing Risk With Factors
Replies: 326
Views: 28493

Re: Larry Swedroe: Managing Risk With Factors

I think the statement that factor investing is expensive is a red herring. Like everything, it depends how it's implemented.

TSM has an expense ratio of 0.04% Small Value index has an ER of 0.07%

Total International has an ER of 0.11%. FTSE Smallcap has an ER of 0.13%

So the difference is all of 2-3 bp.
Tilting may or may not outperform, but it doesn't have to be expensive!