Search found 2631 matches

by pingo
Fri Sep 22, 2023 3:32 pm
Forum: Investing - Theory, News & General
Topic: Jack Bogle personal portfolio
Replies: 37
Views: 5533

Re: Jack Bogle personal portfolio

From Bogleheads® investment philosophy (Link: https://www.bogleheads.org/wiki/Bogleheads%C2%AE_investment_philosophy ) "The Bogleheads follow a few simple investment principles that have historically produced risk-adjusted returns that are better than the returns of average investors. These principles are the results of Nobel prize-winning research on Modern Portfolio Theory and the Capital Asset Pricing Model. They are however easy to understand and implement, and they work. Using these principles can make it simple to invest successfully. Anyone can do it with a small amount of effort. The main ideas come from the investing philosophy of Vanguard's founder, John Bogle. They have been distilled and explained in a comprehensive set of ...
by pingo
Fri Sep 22, 2023 3:04 pm
Forum: Investing - Theory, News & General
Topic: Jack Bogle personal portfolio
Replies: 37
Views: 5533

Re: Jack Bogle personal portfolio

Edited. It's all in the perspective, I suppose. We have to remember that John C. Bogle was Bogle before Bogleheads distilled his sage wisdom into actionable principles intersecting with solid financial "other stuff" from Nobel Peace Prize winners and the like. It might be said that Bogle was no more a Boglehead than a Boglehead is Bogle. He also had times (rare I'm sure) when he advocated for tactical asset allocation: In a 2014 interview (here: https://www.youtube.com/watch?v=k6ra5POdsYg ) Bogle explained how he sold most of his stocks during the dot-com bubble that peaked in 2000. He had a 70-80% stocks allocation, and went down to 25-30% (3:40). source: https://www.reddit.com/r/Bogleheads/comments/zpdsvz/john_bogle_sold_most_o...
by pingo
Mon Jan 03, 2022 8:49 pm
Forum: Investing - Theory, News & General
Topic: Target date funds ... so much for "set and forget" [and WSJ article]
Replies: 567
Views: 67994

Re: Target date funds ... so much for "set and forget"

I found some theories being discussed here: https://www.bogleheads.org/forum/viewtopic.php?t=362699 Does selling stocks to buy bonds trigger inordinate capital-gains distributions? I didn't think it worked that way. Wouldn't a person have more capital-gains distributions if he held onto his stocks instead of buying bonds? I think that the Target funds try to be efficient by using inflows and outflows to help maintain their respective asset allocation, but sometimes the Target date fund would be forced to sell off appreciated assets in one or more of the underlying funds in order purchase assets in another/others to obtain the proper balance. So, it's not quite like a TSM fund that can (mostly) buy and hold forever without heavy capital gai...
by pingo
Mon Jan 03, 2022 12:46 pm
Forum: Investing - Theory, News & General
Topic: Target date funds ... so much for "set and forget" [and WSJ article]
Replies: 567
Views: 67994

Re: Target date funds ... so much for "set and forget"

garyscan wrote: Mon Jan 03, 2022 12:23 pm
pingo wrote: Mon Jan 03, 2022 12:08 pm
As a side note, when I think of a single balanced/asset allocation fund for a taxable account, I always think in terms of the Vanguard Tax-Managed Balanced Index Fund (VTMFX) ER 0.09%.
Thanks, pingo. Looks like VTMFX swaps out the taxable bonds for tax-exempt bonds. Nice.
Also, it is not a fund of funds, so rebalancing between stocks and bonds is managed differently than a target fund.

It also focuses it's stocks with no dividends, qualified dividends, etc. [Edited:] and tax exempt bonds.

At least as of 2016, the fund hadn't even made a single capital gains distribution since 1994.

Source: Morningstar.com article: A Superior Tax-Conscious Balanced Fund From Vanguard
by pingo
Mon Jan 03, 2022 12:08 pm
Forum: Investing - Theory, News & General
Topic: Target date funds ... so much for "set and forget" [and WSJ article]
Replies: 567
Views: 67994

Re: Target date funds ... so much for "set and forget"

I made a similar (but much smaller in scope) mistake by investing in VBIAX (balanced fund) in my taxable account. Same thing happened to me! (Hence my questions above) The tax-efficient fund placement wiki does suggest these are "Efficient" asset classes and can be placed in any account. At least this is how I read it...that the "Vanguard Balanced Index Fund" is a "balanced index fund". Clearly "efficiency" is a spectrum. It's like a "low-cost" mutual fund. I would consider VBIAX inefficient, but definitely not as inefficient as a bond fund. In any case, what's the difference between VBIAX and the life strategy fund? As a side note, when I think of a single balanced/asset allocation fund fo...
by pingo
Mon Nov 22, 2021 11:19 pm
Forum: Personal Investments
Topic: 457?
Replies: 35
Views: 3118

Re: 457?

Just to revisit the issue of fund selection: I always liked T. Rowe Price target/retirement funds, even at the (previous) full retail ER 0.68%-0.78%.

TRP's Target/Retirement ERs have come down in recent years.

In your case, a T. Rowe Price target fund at ER 0.38% is a steal.

My preference would be to select a T. Rowe Price target date fund/CIT. It offers complete diversification in a single fund with the benefit of simplicity for you. The fund will automatically rebalance for you and it will slowly reduce its risk over time by increasing bonds, fixed income and cash.
by pingo
Fri Oct 15, 2021 4:03 pm
Forum: Personal Investments
Topic: Portfolio review / Retirement Asset Allocations
Replies: 16
Views: 2330

Re: Portfolio review / Retirement Asset Allocations

I don't think I make enough to consider the mega backdoor roth but I need to read up more about this. I don't know if you are phased out (or might phase out) of qualifying for standard Roth IRA contributions, but rolling the SEP and Old 401k into one of your current 401ks would make possible regular-style Backdoor Roth IRA contributions, if necessary. Also, if / when you do not have enough money to max out your Roth IRA contributions, consider pulling money out of the taxable account to fund Roth IRA contributions. Also, you should only have one Roth IRA account. Pick which one you prefer and roll the other one into it. (Your contributions must also comply with the IRA contribution limit of $6,000 in the aggregate, regardless of the number...
by pingo
Fri Oct 15, 2021 3:54 pm
Forum: Personal Investments
Topic: Portfolio review / Retirement Asset Allocations
Replies: 16
Views: 2330

Re: Portfolio review / Retirement Asset Allocations

I assume your Solo 401(k) contributions are profit sharing contributions only . Is that correct? Also, do you have any interest / ability to use your Solo 401(k) as a vehicle for Mega Backdoor Roth contributions? I'm not really sure; I am able to make both employer and employee contributions to my solo-401k. I am a sole proprietorship right now (and will be for the foreseeable future)! I don't think I make enough to consider the mega backdoor roth but I need to read up more about this. Thanks! For clarity: you may make personal contributions (a.k.a., "elective deferrals") to both 401ks, but they may not exceed $19,500 in the aggregate . The Company and your freelance business are permitted to contribute additional amounts in the ...
by pingo
Thu Oct 14, 2021 4:18 pm
Forum: Personal Investments
Topic: Portfolio review / Retirement Asset Allocations
Replies: 16
Views: 2330

Re: Portfolio review / Retirement Asset Allocations

Another option might be to see if your Company 401(k) can be used as a vehicle for Mega Backdoor Roth contributions.
by pingo
Thu Oct 14, 2021 4:13 pm
Forum: Personal Investments
Topic: Portfolio review / Retirement Asset Allocations
Replies: 16
Views: 2330

Re: Portfolio review / Retirement Asset Allocations

I assume your Solo 401(k) contributions are profit sharing contributions only. Is that correct?

Also, do you have any interest / ability to use your Solo 401(k) as a vehicle for Mega Backdoor Roth contributions?
by pingo
Wed Oct 13, 2021 6:32 pm
Forum: Personal Investments
Topic: 50 years old and time for a portfolio review
Replies: 12
Views: 2936

Re: 50 years old and time for a portfolio review

Mysterious wrote: Wed Oct 13, 2021 3:52 pmThe 403b will only transfer if I contact my employer from 30 years ago [...]
The only 403(b) listed is for Her. Is there an error in the original post?
by pingo
Wed Oct 13, 2021 5:59 pm
Forum: Personal Investments
Topic: 50 years old and time for a portfolio review
Replies: 12
Views: 2936

Re: 50 years old and time for a portfolio review

On a similar note, each of you can make additional catch-up contributions to the 401(k) plans. $19,500 elective deferral limit + $6,500 catch-up contributions = $26,000/year 401(k) contributions. If income is insufficient to save the extra $6,500 and still put food on the table, you can make the catch-up contributions anyway, and any shortfall in take-home pay can be withdrawn from the taxable account. Also, find out if your spouse's 401(k) allows here to setup an after-tax 401(k) account (which is not the same as a Roth 401(k) account), with the ability to regularly take out the after-tax savings. If so, she could also save money after-tax in the 401(k) and have it directly rolled over into her Backdoor Roth IRA. (Another $32,000 per year ...
by pingo
Wed Oct 13, 2021 5:40 pm
Forum: Personal Investments
Topic: 50 years old and time for a portfolio review
Replies: 12
Views: 2936

Re: 50 years old and time for a portfolio review

Mysterious wrote: Tue Oct 12, 2021 9:51 pmAdded 10/12/2021 Besides getting portfolio adjusted, I am thinking of retirement.
As long as one of you is working, the earned income qualifies both of you to make Backdoor Roth IRA contributions ($14,000/year total), after the Traditional IRAs have been merged into 401k accounts.

If income is insufficient to fund Backdoor Roth contributions, use cash and dividends from your taxable investments to fund the Backdoor Roth.

Turn off automatic dividend re-investment in the taxable account, if you haven't already.
by pingo
Wed Sep 29, 2021 6:23 pm
Forum: Personal Investments
Topic: Late start investing
Replies: 62
Views: 11441

Re: Late start investing

I chose an 80/20 allocation since I'm older with very little retirement savings. I chose 70% VTI, 10% VXUS and 20% BND. It is tough to greenlight 80/20 without more info, but I will say that it is the most aggressive allocation I would feel comfortable greenlighting. 80/20 stocks-to-bonds is an aggressive growth portfolio. 80/20 has provided only slightly lower returns vs 100% stocks, but with lower volatility, relatively . High volatility won't mean much for a few years, anyway, since you're starting with $0 in the 401k. New contributions will soften account volatility. The employer match doesn't start until after the first year of employment. With $32,000 annual income, you should maximize 2021 tax-year contributions for your Traditional...
by pingo
Thu Sep 09, 2021 7:17 pm
Forum: Personal Investments
Topic: 401k Fund Options
Replies: 12
Views: 1357

Re: 401k Fund Options

It is difficult to imagine a much simpler setup.

I suppose you could eliminate the Vanguard 500 fund and Extended Market, since Total Stock fund covers both, efficiently.

Or, if one keeps the 500 and Extended Mkt funds, eliminate the Total Stock fund?

I do not offer this idea with conviction, but it's something to weigh in the balance.
by pingo
Wed Sep 01, 2021 11:12 am
Forum: Personal Investments
Topic: Investment help.
Replies: 6
Views: 1000

Re: Investment help.

Those are excellent reasons to continue as planned. :D

Keep up the good work!
by pingo
Tue Aug 31, 2021 1:44 pm
Forum: Personal Investments
Topic: Investment help.
Replies: 6
Views: 1000

Re: Investment help.

Welcome to the forum! You have wonderful options! Just planting a seed here, but if you're willing to accept more international diversification (36% of the portfolio), the following is worth a look: 1. Move all 401(a) and 403(b) assets and contributions into Vanguard Target Retirement 2055 ER 0.065%. (90% stocks/10% bonds) 2. Move all Fidelity Roth IRA assets and contributions into the Fidelity Freedom Index 2055 Fund (FDEWX) ER 0.12%. (90% stocks/10% bonds) Rough "back of the envelope" math tells me that the above offers a weighted ER of 0.066% for the whole portfolio. Not as low as Duckie's suggestion, which saves you a pinch over a $100 dollars each year compared to mine. The difference in the timing of rebalancing your current...
by pingo
Tue Mar 30, 2021 4:21 pm
Forum: Personal Investments
Topic: 401k fund allocation help
Replies: 17
Views: 1900

Re: 401k fund allocation help

The following would a portfolio that is 60% US / 20% Intl / 20% Bonds across both accounts: His 401k at Fidelity - Contributing 10% of salary per year, plus 4% company match. 87% of total portfolio 43% VANG IS TL STK MK IP (VITPX) (0.02%) 23% NT ACWI EX-US IDX DC (0.065%) 23% NT AGGREG BOND INDEX - Bond Investments - Intermediate-Term - 0.03% 07% COMPANY STOCK FUND (0.006%) 04% VANG REIT IDX INST (VGSNX) - Stock Investments - Specialty - 0.10% Her Roth IRA at Fidelity. 13% of total portfolio 100% FIDELITY TOTAL MARKET INDEX FUND (FSKAX) (0.015%) 2. All future contributions for her Roth are currently going in to FSKAX -. Good? We like holding stocks in Roth accounts, but if Her Roth is still a final tier in your emergency funds, it is be adv...
by pingo
Tue Mar 30, 2021 1:20 pm
Forum: Personal Investments
Topic: 401k fund allocation help
Replies: 17
Views: 1900

Re: 401k fund allocation help

Nicely done. Welcome back! Saving and investing have served you well these past 5 years. 1. Should I rebalance my 401k? And what funds would be best for future contributions? Previously, you indicated 60% US / 20% Intl / 20% Bonds for your 401k. Currently, your assets across His 401k and Her Roth are 70% US / 18% Intl / 12% Bonds. Some clarification may still be in order. His 401k at Fidelity - Contributing 10% of salary per year, plus 4% company match. 87% of total portfolio 33.7% VANG IS TL STK MK IP (VITPX) (0.02%) 20.4% NT ACWI EX-US IDX DC (0.065%) 20.2% NT S&P 500 INDEX (0.015%) 14.2% NT AGGREG BOND INDEX - Bond Investments - Intermediate-Term - 0.03% 7.1% COMPANY STOCK FUND (0.006%) 4.0% VANG REIT IDX INST (VGSNX) - Stock Investm...
by pingo
Wed Mar 17, 2021 7:09 pm
Forum: Personal Investments
Topic: [What is the best allocation for my three-fund portfolio?]
Replies: 6
Views: 2537

Re: [What is the best allocation for my three-fund portfolio?]

For me, I would need to clarify what is meant by "from what I've read...international about 20%."

Usually, when we speak of one's percent in international stocks, we mean to establish a consistent proportional relationship between US and International.

So, 20% of stocks in a 100% stock portfolio = 20% International.

However, 20% of 45% stocks = 9% International.

Maybe OP already realizes it, but I couldn't tell from this thread.
by pingo
Fri Feb 05, 2021 10:45 pm
Forum: Personal Investments
Topic: Trying to simplify life
Replies: 34
Views: 5491

Re: Trying to simplify life

No need to re-balance. Your taxable account is only 10% of your portfolio. Whatever happens in taxable won't skew your asset allocation much.

1. Use an appropriate LifeStrategy fund in your tax-deferred and tax-free accounts. (The "G" in VASGX may stand for "Growth," but the "A" stands for "aggressive".)

2. Convert tax-deferred to Roth while you can, that is, if you can manage.

3. Do not re-balance funds in taxable.

4. Do not reinvest dividends or new cash into taxable funds.

5. Watch the tax consequences when liquidating taxable assets.

4. Vanguard Tax-Managed Balanced Fund (VTMFX) is a great choice for taxable when moving assets out of the old taxable funds.
by pingo
Thu Dec 24, 2020 12:57 pm
Forum: Personal Investments
Topic: Investment advice
Replies: 15
Views: 1489

Re: Investment advice

pingo wrote: Thu Dec 24, 2020 12:34 pmWith the caveat that withdrawing original contributions from a Roth is penalty free if the withdrawal is after 5 years...or did that change?
I stand corrected! :beer
by pingo
Thu Dec 24, 2020 12:34 pm
Forum: Personal Investments
Topic: Investment advice
Replies: 15
Views: 1489

Re: Investment advice

livesoft wrote: Thu Dec 24, 2020 11:07 amIf you are eligible for a Roth IRA, then I would put the money in a Roth IRA because you can withdraw the contribution without any penalty anyways.
lakpr wrote: Thu Dec 24, 2020 11:15 am Do you have any earned income at all, from on-campus jobs, internships, etc.?

If you do, I suggest that you aim to contribute the maximum (up to $6000 per year or the earned income, whichever is less) to a Roth IRA.
With the caveat that withdrawing original contributions from a Roth is penalty free if the withdrawal is after 5 years...or did that change?
by pingo
Thu Dec 10, 2020 4:00 pm
Forum: Investing - Theory, News & General
Topic: Investing in an IPO
Replies: 21
Views: 2313

Re: Investing in an IPO

Time will tell if people are too excited today and will have cooler heads in the coming weeks or months.

I still do not recommend buying individual stocks.

But if I were to buy in, I'd set limit orders good for 60 days at $68 or $70, and for $50 or $60 dollars.

Then, I would be happy if limit orders execute, and I would be happy if they did not.

Edit: I composed the above statements this morning before I saw Morningstar.com's valuing of ABNB at $60 per share (link).

Either way, I know nothing and will not be purchasing any shares.
by pingo
Wed Nov 25, 2020 1:42 pm
Forum: Investing - Theory, News & General
Topic: Help Me Understand
Replies: 32
Views: 3309

Re: Help Me Understand

OP,

I recommend reading Peter Bernstein's venerable The 60/40 Solution.
by pingo
Tue Nov 24, 2020 5:52 pm
Forum: Investing - Theory, News & General
Topic: Investing in an IPO
Replies: 21
Views: 2313

Re: Investing in an IPO

I believe most IPO's end up trading for less within a month or two after they go public, unless you can get some special pre IPO-market pricing. Exactly. No need to work hard and put up a ton of capital to get in on an IPO. Just buy the stock at the the (statistical probability of) lower pricing on the open market in the months following the IPO. I don't recommend individual stock purchases, but as an exercise, I suggest going to Morningstar.com and looking up the ticker of all the exciting IPO's you can think of from recent memory. Click on "Show full chart" and select the "Max" setting so you look back at stock performance at the beginning. Here's a test case: FaceBook (fb). The stock spent ~2 months after the IPO at ...
by pingo
Tue Nov 24, 2020 1:49 pm
Forum: Personal Investments
Topic: Work 401k Allocation
Replies: 6
Views: 768

Re: Work 401k Allocation

I support putting 100% of 401k savings into American Funds 2040 Target Date Retirement Fund (RFGTX) (.38%). Easy peasy. Remember that the superiority of index funds lies in their low costs. Even John Bogle acknowledged that low cost active management by responsible stewards is also good, when it comes down to it. American Funds is an excellent steward of investor assets. OP has the opportunity to access American Funds with the lowest ER's I have ever seen, and for only a few basis points higher than using the available index funds, that is, if OP keeps asset classes at roughly market weights. RFGTX is 85/15 and covers Lg, Md, Sm, Non-U.S., bonds, etc. For me, there isn't enough of a cost difference to justify the compromise in diversificati...
by pingo
Mon Nov 16, 2020 5:46 pm
Forum: Personal Investments
Topic: Investment question
Replies: 15
Views: 698

Re: Investment question

Would this be a smart move and are there any tax issues[?] Hello, 6d1v7x3! As to the "smart move" part, you see that the responses favor staying with Fidelity. Without knowing more, I agree with staying put. As to "tax consequences," there are no tax consequences, if you do it right, which is not difficult. 1. Vanguard can guide you through the moving the Roth IRA over. It's still a Roth IRA; no tax consequences. 2. Funds also can be purchased or liquidated inside the Roth IRA with no tax consequences. In fact, a move to Vanguard will force all Roth IRA assets to be liquidated. No problem, there, regardless. 3. Likewise, if certain requirements are met, withdrawals from the Roth IRA are not taxed, i.e., one must be at l...
by pingo
Mon Nov 16, 2020 11:07 am
Forum: Personal Investments
Topic: Re-balancing away from a target date fund
Replies: 11
Views: 1074

Re: Re-balancing away from a target date fund

What you intend is fine, and the advice in this thread is solid, but sticking with Fidelity Freedom 2045 K fund (FSNZX) ER 0.65% is just as good, if not better. Yes, the Cost Matters Hypothesis is a driving force on this site, but the hypothesis has yet to make its case concerning Fidelity's reasonably-priced Freedom Funds, like FSNZX. There is no difference in behavior or performance between your 401a's Fidelity 2045 K fund and the index fund version, which is merely a simple 4 fund portfolio. Click here to see Morningstar.com's chart comparing 2045 K vs. 2045 Index. I really don't see a difference. FSNXZ's other advantages: it holds market-like balances of Lg, Md, Sm, Developed Mkts, Emerging Mkts, etc. Breaking things up is unnecessarily...
by pingo
Sat Nov 14, 2020 3:50 pm
Forum: Investing - Theory, News & General
Topic: Christine Benz article looks like Boglehead portfolio advice thread
Replies: 20
Views: 3540

Re: Christine Benz article looks like Boglehead portfolio advice thread

75/25 is her recommendation for a 50 year old who wants to retire in ~10 years? That’s aggressive, no? It’s more aggressive than the Vanguard target retirement fund, which also has notable sequence of return risks. "More than 10 years" (per Benz) is still consistent with Kate continuing to hold Vanguard Target Retirement 2035 in her 401k. VG 2035 is 75/25. But, yes, it is more aggressive than VG 2030, which would be 10 years, strictly. However, we're also talking about a couple that stayed the course for 30 years with nearly 100% stocks. And reading between the lines, new cash contributions over more than 10 years could very well represent more than half the size of the present portfolio. So, reasonable de-risking is still in pla...
by pingo
Fri Nov 13, 2020 2:13 am
Forum: Investing - Theory, News & General
Topic: Christine Benz article looks like Boglehead portfolio advice thread
Replies: 20
Views: 3540

Re: Christine Benz article looks like Boglehead portfolio advice thread

So is this an international vs US thread now? If so then may as well change the title, OP. Not my intention, but I can see how some of my comments make it look that way. I'll explain. My favorite part is the significant increase in foreign equity allocation to be "more in line with professional asset-allocation guidance" and because "foreign stocks appear to have better valuations and return prospects than U.S. stocks today". I had lauded Benz's article for it Bogleheadishness (still do), and Robot Monster pointed out that Benz used valuation as a reason to add foreign stocks to the portfolio. However, my reference to strategic asset allocation over tactical asset allocation was pro-strategic, which is a basic tenet of ...
by pingo
Thu Nov 12, 2020 2:31 pm
Forum: Investing - Theory, News & General
Topic: Christine Benz article looks like Boglehead portfolio advice thread
Replies: 20
Views: 3540

Re: Christine Benz article looks like Boglehead portfolio advice thread

Er, well, there is that. :| So, that's one spot where the article differed from general Boglehead philosophy, i.e., the use of valuations to motivate stock purchases. I know if it were me, I might use valuation as an excuse to help me accept such a big portfolio change, even though I accept that a better reason is simply to achieve a desirable level of portfolio diversification--assuming one believes that international equities belong in one's portfolio. As an argument for strategic asset allocation, over "tacticool" AA decision-making, I can't remember the last time international stocks didn't have more attractive valuations than the U.S., yet U.S. large caps have continue to be on top. I have also seen it argued that historicall...
by pingo
Thu Nov 12, 2020 12:42 pm
Forum: Investing - Theory, News & General
Topic: Christine Benz article looks like Boglehead portfolio advice thread
Replies: 20
Views: 3540

Christine Benz article looks like Boglehead portfolio advice thread

For any newbies or lurkers, I recommend heading over to Morningstar.com to read Christine Benz' article (online 12 Nov 2020) called: 50-Year-Old Asks: Is It Time for More Bonds? Ms. Benz's work will not surprise many forum-goers, but it is still enjoyable to see where good columnists align with our forum and vice versa. In fact, it is the first I have seen an article where Benz formats a "Before" (and "After") portfolio just like how we ask people to list assets under Asking Portfolio Questions , e.g. each partner's account, assets listed as percentage of the whole, not of the account, etc. (Perhaps she has done it before, but I have been away for some time.) Benz's couple epitomize John Bogle's famous quote : “Successfu...
by pingo
Wed Nov 04, 2020 4:25 pm
Forum: Personal Investments
Topic: How to mimic S&P 500 or Total Stock Market with limited fund options?
Replies: 12
Views: 1410

Re: How to mimic S&P 500 or Total Stock Market with limited fund options?

Here are the options on the "choose your own investments" page:

Individual portfolios / NY 529 Direct Plan

Strange, indeed.

Who's idea was it to to use Vanguard Total Stock Index Fund for the numerous portfolios options, with an individual fact sheet for the fund, but not include it as a single "stock market index portfolio," like they do for the "Growth Index Portfolio," i.e., VG Growth Index Fund, etc?

:oops:

I'm just asking the unanswerable.
by pingo
Thu Oct 29, 2020 12:02 pm
Forum: Personal Investments
Topic: Roth 401(k) always worse than Traditional 401(k)
Replies: 54
Views: 6977

Re: Roth 401(k) always worse than Traditional 401(k)

TheFinanceBuff handled the subject pretty well, and his second article offers a link to a spreadsheet for one to the math based on one's personal situation:

The Case Against the Roth 40(k)

Roth 401(k) for People Who Contribute the Max

Roth 401k Makes People Have More Money To Spend In Retirement

In some scenarios the difference seems marginal, in favor of one or the other. A greater difference occurs the larger the spread between current and retirement marginal tax rates.

I am not sure how things compare when one is able to achieve The Elusive Mega Backdoor Roth.

As things stand for this investor, 'which is better' may never amount to more than an exploration of theory over practice.
by pingo
Wed Oct 28, 2020 4:49 pm
Forum: Personal Investments
Topic: Roth 401(k) always worse than Traditional 401(k)
Replies: 54
Views: 6977

Re: Roth 401(k) always worse than Traditional 401(k)

I haven't had the time I had hoped to read through this thread, so if my post is out-of-sync...criticism accepted.

I sometimes go to dinkytown.net to compare roth investing versus traditional. The website does the math and compares the results. I hope it is helpful to the conversation.

Below is a specific link for Roth 401(k) vs Traditional 401(k), but the site also has other calculators for saving and investing.

Roth 401(k) vs. Traditional 401(k) Calculator
by pingo
Sat Oct 24, 2020 1:53 pm
Forum: Personal Investments
Topic: Help getting in the market
Replies: 52
Views: 4248

Re: Help getting in the market

:idea:

Some turtle wisdom, as it relates to this topic:

Kung Fu Panda - Master Oogway Ascends
by pingo
Sat Oct 24, 2020 1:24 pm
Forum: Personal Investments
Topic: Help getting in the market
Replies: 52
Views: 4248

Re: Help getting in the market

Edits. Full disclosure: I do not know what I would do in your situation. Things look different when it's my own money. There was a time I had (what to me was) a large amount of money to invest. I negotiated with myself until deciding on something like DCA-ing over 6 months, or investing half and then DCA-ing the rest. Ultimately, I ran out of patience because I didn't like the distraction of the unfinished task. I have no regrets. YMMV Preambles aside, I picked up the following considerations here and there from this community: - If you had invested years ago, and then your investment grew to the amount you currently intend to invest, would you sell? - If the answer is no, staying in the present market is no different than entering the pre...
by pingo
Fri Oct 23, 2020 4:51 pm
Forum: Personal Investments
Topic: Help getting in the market
Replies: 52
Views: 4248

Re: Help getting in the market

Pokerpot wrote: Fri Oct 23, 2020 3:37 pmSo there you have all of it???
...er, not quite...?

We really don't have a sense of the amounts you possess (percentage-wise) in tax-advantaged retirement accounts (401ks, IRAs, etc.) in relation to this new money.

For all we know, you could move all tax-advantaged accounts into bond funds-only, stick all new money into stocks-only, and still end up with an asset allocation that's too conservative. We're still flying blind.

The Asking Portfolio Questions format helps on a lot of levels.

I can understand if you don't want to go there, but it's a big help from our perspective.
by pingo
Fri Oct 23, 2020 4:37 pm
Forum: Personal Investments
Topic: Question about rebalancing my portfolio
Replies: 3
Views: 514

Re: Question about rebalancing my portfolio

Edited: I'm going off information I see in your first thread on this forum . Here's a way to "set and forget" things while at the same time keeping the portfolio away from too high an international stock and bond allocation: His 401k Vanguard Institutional Index Instl Pl (VIIIX) .02% <--$19,000/yr. His Vanguard Roth IRA Vanguard Total International Stock Index Fund (VTIAX) .11% <--$6000/yr. Her Vanguard Traditional IRA Vanguard Total Bond Index Fund (VBTLX) .05% <--$6000/yr. The above would give you a *roughly* 60/20/20 portfolio of US/Int'l/US Bonds, and new contributions to each account keep the portfolio in *roughly* those proportions without having to rebalance very often, if ever. Not perfect, but no one gets to invest perfe...
by pingo
Fri Oct 16, 2020 1:51 pm
Forum: Personal Investments
Topic: Help switching my actively managed funds to Vanguard
Replies: 14
Views: 1613

Re: Help switching my actively managed funds to Vanguard

The following is not advice; it's more of a "stream of consciousness" exploration of options... I [...] have about $700k invested with my financial advisor (at LPL financial) [...] However, my investments with him is now larger since selling some property and he now charges 1%.[...] Should I transfer the money I have invested with my advisor to Vanguard and use their personal advisor service, and get rid of my advisor? Will this be a major headache and will I end up just paying more in taxes? As has already been stated, the IRA's should be moved to Vanguard for the lower costs. Changing the investments inside them will not cause any tax consequences. The LPL Financial taxable account is where the headache may lie if you need to mi...
by pingo
Wed Jan 29, 2020 6:49 pm
Forum: Investing - Theory, News & General
Topic: Turn over ratio for FIHFX, 159%, is this real?
Replies: 11
Views: 1515

Re: Turn over ratio for FIHFX, 159%, is this real?

Strange.

FIFHX at Morningstar.com lists turnover at 10%, which is consistent what you'd expect, given the underlying index funds.

It's a head-scratcher why M* would have more accurate information than Fidelity, assuming that's the case.

As an aside, it wasn't long ago that the Fidelity Freedom Index Fund series included commodities in the place where they presently hold LT treasuries, but I don't recall the commodities bringing turnover up to that level, either. (Today is probably the first time I've looked at one in a few years.)
by pingo
Tue Apr 23, 2019 12:56 pm
Forum: Personal Investments
Topic: 3 Fund Portfolio w/my 401k Options
Replies: 11
Views: 3089

Re: 3 Fund Portfolio w/my 401k Options

Brokeragelink is unnecessary with this 401k.

Brokeragelink can be desirable when one needs to escape a bad plan or assist a partly bad plan.

Brokeragelink might also require payment of an additional account fee.

Keep it simple.

All the best! 👍🏻
by pingo
Thu Jan 17, 2019 11:39 pm
Forum: Investing - Theory, News & General
Topic: John Bogle has died at age 89
Replies: 856
Views: 82107

Re: John Bogle has died at age 89

Thank you, my brother, for the life I'll have having knowing you from afar.
by pingo
Thu Jun 21, 2018 5:15 pm
Forum: Personal Investments
Topic: [100% stock, uncomfortable with international]
Replies: 73
Views: 12040

Re: [100% stock, uncomfortable with international]

The best time to get out of international equities is when you're losing sleep before something really bad happens.

You have to be able to sleep when the fit hits the shan.

100% U.S. is good enough.

Many happy returns! :thumbsup
by pingo
Thu May 31, 2018 6:54 pm
Forum: Personal Investments
Topic: Please help with TIAA CREF fund picking
Replies: 12
Views: 1701

Re: Please help with TIAA CREF fund picking

Student just reminded me of what I keep forgetting to address: Columbia Mid Cap ER 0.20% is nice, since it's ER is below average, considering the options on the list. The problem is that the CREF Equity Index fund eliminates the need for mid caps. There might still be a few adherents to Mel's Unloved Mid Caps, which would simply use Columbia Mid Cap as their sole U.S. equity holding in this plan. ( Click here to search that line of threads.) I avoided CREF Global Equity to avoid having to calculate around the U.S. equities to know what the International allocation is in the portfolio. Judging by the strategy and the current asset allocation (60% U.S. stocks), I doubt it will remain fixed in it's US/Intl ratio. Instead, it will probably hove...
by pingo
Thu May 31, 2018 5:32 pm
Forum: Personal Investments
Topic: Please help with TIAA CREF fund picking
Replies: 12
Views: 1701

Re: Please help with TIAA CREF fund picking

Here is a typical-style DIY 90/10 portfolio based on your plan's asset class fund options: 60% CREF Equity Index ER 0.30 <--Tracks the Russell 3000 25% American Funds EuroPacific Growth ER 0.50 <--One of the kings of international investing at rock bottom cost 05% TIAA Real Estate ER 0.79 <--TIAA's unique real property fund; top notch; diversification 10% CREF Bond Market ER 0.37 <--'Nuff said. Weighted ER = 0.38% - Holds US Lg, Md, and Sm Caps - Holds International Developed and Emerging Markets - Eliminating TIAA Real Estate would lower the weighted ER by 4 basis points. Compare that to the asset allocation of TIAA-CREF 2040 Lifecycle: 60% US Lg, Md and Sm Caps 26% International Developed and Emerging Markets 03% Real Estate 11% Bonds We...
by pingo
Wed May 30, 2018 1:26 pm
Forum: Personal Investments
Topic: Please help with TIAA CREF fund picking
Replies: 12
Views: 1701

Re: Please help with TIAA CREF fund picking

Great questions! Furthermore, if I pick a lifecycle fund lets say 2040, and end up not liking it, then could I move my money into something else or am I stuck with it until 2040? Not stuck at all. The date is not a contract; it merely has to do with the fund's asset allocation "glidepath" (slow changes over the years) so that it isn't aggressively risky when one retires in 2040. [D]o lifecycle funds change in their ratios of stocks/bonds as you get closer to retirement (more bonds and less stocks closer to retirement)? Or do the ratios just stay the same? Yes, they change their asset allocation, as I said. Here's a link that explains how the TIAA-CREF Lifecycle funds are designed, and where you'll find a chart showing how the asse...
by pingo
Tue May 29, 2018 6:43 pm
Forum: Personal Investments
Topic: Please help with TIAA CREF fund picking
Replies: 12
Views: 1701

Re: Please help with retirement fund picking

Congratulations on graduation and the new job. Awesome. Let's get you started on your retirement savings! You have an excellent plan. Retirement plans can be soooo expensive. Yours is not. I realize you might feel it's expensive when you see us splitting hairs over how to reduce the weighted expenses of an entrie portfolio by hundredths of a percent, but you need to know you have a great plan. My first suggestion will possibly be negated by my last suggestion, but here goes. The TIAA-Cref Lifecycle funds are top notch. You're done. If you choose the fund by your expected retirement date, the asset allocation will be 95% or more in stocks and reits. That's volatile and not my recommendation. The 2040 fund is 90% stocks/10% bonds. The 2035 fu...
by pingo
Fri May 25, 2018 6:25 pm
Forum: Personal Investments
Topic: 401k investment choices
Replies: 7
Views: 1425

Re: 401k investment choices

So BlackRock's large blend tracks pretty similarly to Vanguard's Total Stock Market index? I also like that it has a low ER. There will be no difference between them. Is the DFA US Core Equity 2 a mid cap value tilted fund? Or just a mid cap index fund? Active? For what it's worth, I think your 401k mis-categorizes DFQTX. It's a US total -ish market fund which leans slightly to value and small by, well, leaning slightly to value and holding 37% in Mid/Small Caps versus 24% Mid/Small in a total market index fund. The rest are Large Caps. You can see what non-difference it has made by clicking the clickable (linked) chart below of the longest period I could get for the comparison, and from which I can see higher volatility in DFQTX with noth...