Search found 25 matches

by gndibot
Sun Dec 29, 2019 2:31 pm
Forum: Investing - Theory, News & General
Topic: ETF combo that approximates Wellesley?
Replies: 15
Views: 2046

Re: ETF combo that approximates Wellesley?

https://tinyurl.com/VYM-and-BIV For Wellesley Fund: 40% Vanguard's VYM + 60% Vanguard's BIV does just fine. See portfolio visualizer link, above. (Link shortened with tinyurl.) If someone were to try to replicate this, would the appropriate thing to do would be to, hold VYM in taxable and BIV in ta...
by gndibot
Sun Dec 29, 2019 11:57 am
Forum: Personal Investments
Topic: Is there any way to setup automatic investing with ETF's?
Replies: 26
Views: 1772

Re: Is there any way to setup automatic investing with ETF's?

I had a similar question, thanks OP for posting. Can VTSAX only be automated if every order going forward is at least $3,000 minimum or you need to have a minimum of $3,000 in VTSAX in your account to begin automating on a regular basis? If that is the case, I already have > 3K in VTSAX in my taxabl...
by gndibot
Wed Dec 18, 2019 8:27 pm
Forum: Personal Investments
Topic: Are we trying to time the market?
Replies: 10
Views: 1281

Re: Are we trying to time the market?

Currently VG Target Fund 2050 has a 90%/10% AA. You want to be at 80/20. Lump sum the windfall in at 80/20 and you will be close to your target AA. If on the other hand you decide to DCS, then you need to sell all your 2050 fund so you are not in conflict with your current heavy cash portfolio AA. ...
by gndibot
Wed Dec 18, 2019 3:59 pm
Forum: Personal Investments
Topic: Are we trying to time the market?
Replies: 10
Views: 1281

Re: Are we trying to time the market?

What was your asset allocation (AA) before you received the inheritance? We were in a Target Retirement Fund at Vanguard for 2050. 1% a month doesn't really make much sense. Are you sure you want to be 80/20? With the 1%/month you seem to trying to sneak up on 80/20, but once you're done you will b...
by gndibot
Tue Dec 17, 2019 11:04 pm
Forum: Personal Investments
Topic: Are we trying to time the market?
Replies: 10
Views: 1281

Are we trying to time the market?

Hello All, My wife and I are in our early thirties and new to the world of investing. We recently inherited a lump sum that we invested immediately in the market 2 weeks ago so as to bring our AA ratio to 60/40(stock/bond). We would ideally like to be 80/20(stock/bond) so instead of DCA it in piecem...
by gndibot
Thu Dec 12, 2019 10:05 pm
Forum: Personal Finance (Not Investing)
Topic: Opening a HELOC. Wise or not?
Replies: 19
Views: 1274

Re: Opening a HELOC. Wise or not?

Look for a completely no cost HELOC. I'd start with credit unions. I have one I opened 23 years ago. Zero cost to open, zero to maintain. If I pull funds out of it and put them back the same day, they don't even charge me the day's worth of interest. This is with DCU, by the way. I don't know or ca...
by gndibot
Thu Dec 12, 2019 5:09 pm
Forum: Personal Finance (Not Investing)
Topic: Opening a HELOC. Wise or not?
Replies: 19
Views: 1274

Re: Opening a HELOC. Wise or not?


I hate recurring fees like that. Over the next ten years that would be over a thousand dollars.
Yes, i really dislike recurring fees as well. They say they will not charge $8.50/ month if the monthly interest incurred is at least that. That doesn't make any sense to me.
by gndibot
Thu Dec 12, 2019 11:15 am
Forum: Personal Finance (Not Investing)
Topic: Opening a HELOC. Wise or not?
Replies: 19
Views: 1274

Re: Opening a HELOC. Wise or not?

You will get a variety of opinions on this but I have a HELOC as an emergency access to funds beyond an emergency fund. Have you looked into a non-fee HELOC at all? I have one through a credit union with 0 monthly fees. :happy Still trying to find one with zero fees. The least I found was charging ...
by gndibot
Thu Dec 12, 2019 11:04 am
Forum: Personal Finance (Not Investing)
Topic: Opening a HELOC. Wise or not?
Replies: 19
Views: 1274

Opening a HELOC. Wise or not?

We have a year worth of emergency fund already available and are thinking about opening a HELOC that will cover 3 years worth more of expenses. The HELOC expense is $8.50/month to keep around unused. We also have 3 year worth of annual expenses in our taxable account which we want to keep around for...
by gndibot
Tue Dec 10, 2019 4:43 pm
Forum: Personal Investments
Topic: Invest in bonds vs. prepay mortgage
Replies: 168
Views: 7035

Re: Invest in bonds vs. prepay mortgage

Have you ever recast your mortgage? If so, what are the practical aspects? What is involved? Was it trivial for you? My limited understanding was: - Recasting is complicated, done manually, and involves a fixed fee every time you do it. - Not all mortgages are eligible for recast. Some mortgages on...
by gndibot
Tue Dec 10, 2019 4:14 pm
Forum: Personal Investments
Topic: Invest in bonds vs. prepay mortgage
Replies: 168
Views: 7035

Re: Invest in bonds vs. prepay mortgage

AFAIK, when you recast, you essentially hit the principal with a large lump sum and therefore reduce monthly interest on the outstanding now lower principal. Effectively, you save on the interest over the period of the loan.
by gndibot
Tue Dec 10, 2019 1:18 pm
Forum: Personal Investments
Topic: Invest in bonds vs. prepay mortgage
Replies: 168
Views: 7035

Re: Invest in bonds vs. prepay mortgage

Admiral wrote:
Mon Dec 09, 2019 12:00 pm
When you pre-pay (but don't pay OFF) a mortgage, you realize no current savings. Your savings are years or decades in the future, depending on your loan term and how much you're prepaying.
Why do you not realize savings if you recast your mortgage and have the lender reamortize the loan?
by gndibot
Tue Dec 10, 2019 12:59 pm
Forum: Personal Investments
Topic: Portfolio adjustment help
Replies: 27
Views: 2196

Re: Portfolio adjustment help

Thank you for responding once again. Between discussing paying off a significant portion of our mortgage and investing all in at a 80/20 AA in one lumpsum, my wife and I have come up with a happy alternative which I wanted to run by here to ask if our strategy has some inherent flaws? Invest in a l...
by gndibot
Mon Dec 09, 2019 11:23 pm
Forum: Personal Investments
Topic: Portfolio adjustment help
Replies: 27
Views: 2196

Re: Portfolio adjustment help

Thank you Duckie! I noticed our entire bond allocation is split between VBTLX(Intermediate-Term Bond) and VFSUX(Short-term Bond) and because of the limited options in our 401ks we don't really have Long Term Bond component. On the diversification front, how diversified are we in terms of Bonds? A se...
by gndibot
Sun Dec 01, 2019 2:41 pm
Forum: Personal Investments
Topic: Portfolio adjustment help
Replies: 27
Views: 2196

Re: Portfolio adjustment help

gndibot, what will your withdrawal rate be (%)? Paul Hi Paul, this is a good question. We have never thought about that actually, which brings me to my question - what should an appropriate withdrawal rate be and how does one go about determining that without knowing our actual retirement spending ...
by gndibot
Sun Dec 01, 2019 2:34 pm
Forum: Personal Investments
Topic: Portfolio adjustment help
Replies: 27
Views: 2196

Re: Portfolio adjustment help

With the changed AA does this make sense, below? Yes. Would rebalancing the 401k from 60% stock to 80% result in any tax events? No. Swapping funds inside a tax-sheltered account is not taxable. Think of the account as a bucket. You can do almost anything inside a tax-sheltered bucket and no taxes ...
by gndibot
Sun Dec 01, 2019 2:17 pm
Forum: Personal Investments
Topic: Portfolio adjustment help
Replies: 27
Views: 2196

Re: Portfolio adjustment help

Your revised portfolio looks good. There are no tax consequences for rebalancing in the 401k or Roth IRAs. In addition to rebalancing, you can also increase your equity % periodically by investing all new contributions in equity. Thank you! In addition to rebalancing(which is my way of DCA to my de...
by gndibot
Sat Nov 30, 2019 7:02 pm
Forum: Personal Investments
Topic: Portfolio adjustment help
Replies: 27
Views: 2196

Re: Portfolio adjustment help

Thank you for responding once again. Between discussing paying off a significant portion of our mortgage and investing all in at a 80/20 AA in one lumpsum, my wife and I have come up with a happy alternative which I wanted to run by here to ask if our strategy has some inherent flaws? Invest in a lu...
by gndibot
Sat Nov 16, 2019 3:52 pm
Forum: Personal Investments
Topic: Portfolio adjustment help
Replies: 27
Views: 2196

Re: Portfolio adjustment help

His Roth IRA at Vanguard (via backdoor) -- $6K -- 1% 1% (VTI) Vanguard Total Stock Market ETF (0.03%) Her Roth IRA at Vanguard (via backdoor) -- $6K -- 1% 1% (VTI) Vanguard Total Stock Market ETF (0.03%) My wife is not going to have a Megabackdoor ROTH so it would only be me. Also, I probably canno...
by gndibot
Thu Nov 14, 2019 10:29 pm
Forum: Personal Investments
Topic: Portfolio adjustment help
Replies: 27
Views: 2196

Re: Portfolio adjustment help

Appreciate the response! Have you found out what the options are in her 401k plan? Yes, pretty much most of are Target funds for different years(2045, 2050, 2055 etc..) The ones that I found interesting were the following and I were Stock Vanguard 500 Index Fund Admiral Shares VFIAX - (0.04 %) Vangu...
by gndibot
Thu Nov 14, 2019 12:06 am
Forum: Personal Investments
Topic: Portfolio adjustment help
Replies: 27
Views: 2196

Re: Portfolio adjustment help

No. In my example roughly 40% was used to pay down the mortgage and therefore removed from the portfolio. The other roughly 10% (~5% each before refiguring percentages) went into the two taxable accounts. Are you suggesting we use roughly 77% of our cash and use that to pay down and probably recast...
by gndibot
Tue Nov 12, 2019 10:35 pm
Forum: Personal Investments
Topic: Portfolio adjustment help
Replies: 27
Views: 2196

Re: Portfolio adjustment help

Thank you for helping me unravel this, duckie! How much of the 52% will be left after paying down the mortgage? Will the remainder be used for long-term taxable investing? We would have about 60% left in our mortgage if we end up using all of 52%. The dilemma really for us is - do we use that cash t...
by gndibot
Mon Nov 11, 2019 11:13 pm
Forum: Personal Investments
Topic: Portfolio adjustment help
Replies: 27
Views: 2196

Re: Portfolio adjustment help

Tax Filing Status: : Single, Married Filing Jointly 3 Dependent Children) I am assuming you are "Married Filing Jointly" and the "Single" is a typo. That is correct, it's a typo! Why are you holding so much in cash? A recent windfall. His 401k at Vanguard Just started to contribute , so it is curre...
by gndibot
Mon Nov 11, 2019 10:24 pm
Forum: Personal Investments
Topic: Portfolio adjustment help
Replies: 27
Views: 2196

Re: Portfolio adjustment help

1. What do we do with the large pile of cash we have? After maxing out on 401k i think we could pursue a ROTH 401k? One of our employers is going to start supporting backdoor ROTH starting next year, so we likely give it a shot after we get our advise here. Should we pay down the mortgage, invest a...
by gndibot
Mon Nov 11, 2019 8:46 pm
Forum: Personal Investments
Topic: Portfolio adjustment help
Replies: 27
Views: 2196

Portfolio adjustment help

Can you please critique our portfolio and suggest how we could achieve an AA of 80% stock and 20% bond? Ideally, we would want to setup a simple 3-4 fund portfolio with proper distribution in taxable, tax deferred and tax sheltered accounts and need advise and direction. It’s all over the place and ...