Search found 46 matches

by todaysBob
Sun Feb 14, 2021 2:50 pm
Forum: Investing - Theory, News & General
Topic: The premise of the "emergency fund" is flawed
Replies: 559
Views: 29105

Re: The premise of the "emergency fund" is flawed

Imagine you become unemployed for a year and unemployment only covers six months. You finally go back to work and rather than enroll in the 401k and get a great match and fill up valuable tax advantaged space, and rather than use your Roth IRA, you forego that for a year or longer because you have ...
by todaysBob
Sun Feb 14, 2021 2:04 am
Forum: Investing - Theory, News & General
Topic: The premise of the "emergency fund" is flawed
Replies: 559
Views: 29105

Re: The premise of the "emergency fund" is flawed

This is worse because that cash in EF(say $60k for $10k/month expenses) could have been participating in the market all along. I can see your point of view. But let me ask you this. If you always slash your AA to pay expenses as they come in, how do you make sure you don't withdraw too much (i.e. m...
by todaysBob
Sun Feb 14, 2021 1:50 am
Forum: Investing - Theory, News & General
Topic: The premise of the "emergency fund" is flawed
Replies: 559
Views: 29105

Re: The premise of the "emergency fund" is flawed

Sound like all the folks in favor of EF are treating EF like a sacred always dependable for once in a life time emergency mitigation. What happens once an emergency actually strikes and you use the pile of cash? Wouldn't you now need to sell some of the investments to refill the EF? How is that dif...
by todaysBob
Sun Feb 14, 2021 1:25 am
Forum: Investing - Theory, News & General
Topic: The premise of the "emergency fund" is flawed
Replies: 559
Views: 29105

Re: The premise of the "emergency fund" is flawed

Sound like all the folks in favor of EF are treating EF like a sacred always dependable for once in a life time emergency mitigation. What happens once an emergency actually strikes and you use the pile of cash? Wouldn't you now need to sell some of the investments to refill the EF? How is that diff...
by todaysBob
Sun Feb 14, 2021 1:19 am
Forum: Investing - Theory, News & General
Topic: The premise of the "emergency fund" is flawed
Replies: 559
Views: 29105

Re: The premise of the "emergency fund" is flawed

I believe the conventional definition of “asset allocation” is the way you decide to allocate your “investable assets.” An emergency fund (or you can just think of it as just the pile of cash you keep on hand to feel comfortable) is not an “investable asset” any more than your primary residence is ...
by todaysBob
Sun Feb 14, 2021 12:55 am
Forum: Investing - Theory, News & General
Topic: The premise of the "emergency fund" is flawed
Replies: 559
Views: 29105

Re: The premise of the "emergency fund" is flawed

The spending of an EF does not trigger rebalancing if it is not part of your AA. How so may I ask? Once the EF(or part of it) has been used up, how would you refill it? Either you wait for new funds(which means you are w/o an EF for a while) or you sell stocks/bonds and replenish the EF(aka rebalan...
by todaysBob
Fri Jan 15, 2021 2:48 pm
Forum: Investing - Theory, News & General
Topic: Can limit orders get worse prices than market orders?
Replies: 16
Views: 1095

Re: Can limit orders get worse prices than market orders?

I usually put my limit price close to ask price and for liquid etfs like VTI, VXUS spread is usually a cent or two. My theory is even with asking price, we are getting better price than a MF would get end of the day 70% of the time. Given that stocks go up 70% of the days :happy
by todaysBob
Thu Jan 14, 2021 2:37 am
Forum: Personal Investments
Topic: High income, no mega backdoor
Replies: 8
Views: 1103

Re: High income, no mega backdoor

First advice you will get here is to get rid of that 7.75% personal loan first thing tomorrow! Your retirement will thank you in 30 years.
by todaysBob
Tue Jan 12, 2021 7:27 pm
Forum: Personal Investments
Topic: Should I be investing in International Mutual Funds?
Replies: 18
Views: 1446

Re: Should I be investing in International Mutual Funds?

US Stocks returned 15%/year over last 12 years while international struggled. Next decade might be different but who knows? I have only setup my portfolio as a Boglehead portfolio(i.e just index funds) since Feb 19 2020 after many misfirings with individual stocks, private equity, options and crypto...
by todaysBob
Tue Jan 12, 2021 6:54 pm
Forum: Personal Investments
Topic: EFA and EEM vs. VTIAX
Replies: 9
Views: 673

Re: EFA and EEM vs. VTIAX

VTIAX(VXUS) have much lower expense ratio compared to the other two you mentioned. I do own VWO(equivalent to EEM but much lower ER) along with VXUS to get more emerging markets exposure.
by todaysBob
Mon Jan 11, 2021 7:12 pm
Forum: Personal Finance (Not Investing)
Topic: [1099-R shows my entire backdoor conversion taxable]
Replies: 15
Views: 1243

Re: 2020 1099-R error

I contributed to my traditional IRA with after tax money in 2020 and then backdoor converted it to Roth. My 1099-R is also showing entire amount as taxable. This was my first time using the backdoor route. Ditto for my wife. Is this a vanguard issue? No. Vanguard (or any other brokerage) does not k...
by todaysBob
Mon Jan 11, 2021 6:07 pm
Forum: Personal Finance (Not Investing)
Topic: [1099-R shows my entire backdoor conversion taxable]
Replies: 15
Views: 1243

[1099-R shows my entire backdoor conversion taxable]

[Moved into a new thread from: 2020 1099-R error --admin LadyGeek] I contributed to my traditional IRA with after tax money in 2020 and then backdoor converted it to Roth. My 1099-R is also showing entire amount as taxable. This was my first time using the backdoor route. Ditto for my wife. Is this...
by todaysBob
Mon Jan 11, 2021 3:34 pm
Forum: Investing - Theory, News & General
Topic: Why not short SIGL?
Replies: 5
Views: 1096

Re: Why not short SIGL?

Yeah just checked on IB and 0 shares available to short.

So no way to profit from this madness :wink: ?
by todaysBob
Mon Jan 11, 2021 3:23 pm
Forum: Investing - Theory, News & General
Topic: Why not short SIGL?
Replies: 5
Views: 1096

Why not short SIGL?

Investors have confused this stock with private messenger app called Signal recommended by Elon Musk couple of days ago. https://markets.businessinsider.com/news/stocks/signal-advance-stock-price-surge-elon-musk-tweet-privacy-app-2021-1-1029956384 https://www.cnbc.com/2021/01/08/elon-musk-boosts-sig...
by todaysBob
Wed Jan 06, 2021 3:45 pm
Forum: Personal Investments
Topic: VG Backdoor Roth Step-by-step
Replies: 10
Views: 682

Re: VG Backdoor Roth

I just used "Convert to Roth IRA" this morning w/o any issues. But mine tIRA was all cash, not sure if you have to first sell your tIRA holding and then transfer to Roth?
by todaysBob
Sun Dec 27, 2020 1:36 am
Forum: Personal Consumer Issues
Topic: Turbotax on Sale Today Only
Replies: 103
Views: 8780

Re: Turbotax on Sale Today Only

anon_investor wrote: Sun Dec 27, 2020 1:18 am
todaysBob wrote: Sun Dec 27, 2020 12:55 am Looks like $10 off promo already ended around 9.30 PST :( ?
Check again, I still see it ...
Not sure whats happening, I can see the promotion in incognito browser window but not after signing in. So not able to add promotion to the cart.
by todaysBob
Sun Dec 27, 2020 12:55 am
Forum: Personal Consumer Issues
Topic: Turbotax on Sale Today Only
Replies: 103
Views: 8780

Re: Turbotax on Sale Today Only

Looks like $10 off promo already ended around 9.30 PST :( ?
by todaysBob
Mon Dec 21, 2020 8:33 pm
Forum: Personal Finance (Not Investing)
Topic: What is the Worst Financial Decision/Mistake You Have Made?
Replies: 230
Views: 18351

Re: What is the Worst Financial Decision/Mistake You Have Made?

1. Buying an under construction investment property in my home country 2 years after moving to US(2010). I was 26, had no idea of what stock market meant and back home stocks were looked down upon as gambling. So this felt a safe option. That apartment is still being built(like a few days/every year...
by todaysBob
Fri Dec 18, 2020 1:38 am
Forum: Personal Investments
Topic: 50 now - please help review my plan to retire at 55
Replies: 42
Views: 5114

Re: 50 now - please help review my plan to retire at 55

$LARGECORP with 10-yr CAGR of 38% This sounds like Amazon. I have worked there as a software engineer and still have a lot of friends at Amazon. Despite the news articles full of bad employee experiences, there is indeed something unique about the culture there. It feels like a collection of startu...
by todaysBob
Thu Dec 17, 2020 2:24 pm
Forum: Personal Investments
Topic: Private versus Public Equity
Replies: 15
Views: 2272

Re: Private versus Public Equity

A long shot. How did the PE investment work out for you realfan?
by todaysBob
Fri Dec 04, 2020 12:44 am
Forum: Personal Finance (Not Investing)
Topic: Negotiated margin rates < 2% at Etrade
Replies: 15
Views: 1264

Re: Negotiated margin rates < 2% at Etrade

$1M in margin at IB(https://www1.interactivebrokers.com/en/index.php?f=46376) will just cost you 1.14 % :happy $10k at 1.59% though. There is a promo that starts your first dollar in the second tier, currently 1.09%. It's been discussed on the forum. I am guessing it is only for new accounts? I alr...
by todaysBob
Fri Dec 04, 2020 12:06 am
Forum: Personal Finance (Not Investing)
Topic: Negotiated margin rates < 2% at Etrade
Replies: 15
Views: 1264

Re: Negotiated margin rates < 2% at Etrade

$1M in margin at IB(https://www1.interactivebrokers.com/en/index.php?f=46376) will just cost you 1.14 % :happy $10k at 1.59% though. There is a promo that starts your first dollar in the second tier, currently 1.09%. It's been discussed on the forum. I am guessing it is only for new accounts? I alr...
by todaysBob
Wed Dec 02, 2020 7:03 pm
Forum: Personal Finance (Not Investing)
Topic: Negotiated margin rates < 2% at Etrade
Replies: 15
Views: 1264

Re: Negotiated margin rates < 2% at Etrade

$1M in margin at IB(https://www1.interactivebrokers.com/en/ ... hp?f=46376) will just cost you 1.14 % :happy

$10k at 1.59% though.
by todaysBob
Tue Sep 15, 2020 2:12 am
Forum: Investing - Theory, News & General
Topic: Upon reading 'The Bogleheads' Guide to Investing'
Replies: 13
Views: 1287

Re: Upon reading 'The Bogleheads' Guide to Investing'

cap-weighted index funds only trade when stocks enter or exit the index, or when investors add or withdraw money from the fund. How about etfs? What happens when I sell or buy VTI? For argument's sake, if I am selling $1B of VTI, will that lead to price of VTI changing right away and trigger sellin...
by todaysBob
Tue Jun 16, 2020 7:14 pm
Forum: Personal Finance (Not Investing)
Topic: How much umbrella insurance?
Replies: 146
Views: 8077

Re: How much umbrella insurance?

I haven't done much research into Umbrella insurance and need to get to it soon. Newbie question - Why does the net worth matter here? Say my net worth is also $5M and I have an umbrella for $5M, someone sues me for $10M. Will I still be on the hook for $5M from my assets? If my net worth was $0, I ...
by todaysBob
Fri Jun 12, 2020 9:28 am
Forum: Investing - Theory, News & General
Topic: Why is the stock market up? [thread multi-merge]
Replies: 521
Views: 22245

Re: Market makes no sense

What edge does this give you against well informed professionals which have access to a host of sophisticated tools? This is crossing over to speculation. I have always wanted to clarify my understanding of this. I agree with everybody about not trying to time the market but want to clear my doubts...
by todaysBob
Thu Mar 26, 2020 2:41 pm
Forum: Investing - Theory, News & General
Topic: So bottom is probably behind us....right?
Replies: 709
Views: 65620

Re: So bottom is probably behind us....right?

Isn't the market always out to get us :), so if most of the posts here say bottom is not behind us, it probbaly is? :sharebeer
by todaysBob
Sun Mar 15, 2020 9:45 pm
Forum: Investing - Theory, News & General
Topic: Is there a single person on here that thinks Coronavirus is going to have a material impact on [earnings]
Replies: 117
Views: 9903

Re: Is there a single person on here that thinks Coronavirus is going to have a material impact on [earnings]

given that the sellers are largely institutional and Vanguard has reported their investors are buying more than they are selling in the crash. Thanks for bringing this up. I always wonder about this - why do institutions sell/buy so frequently? They should be the ones with more sense than us averag...
by todaysBob
Sun Mar 15, 2020 9:14 pm
Forum: Personal Investments
Topic: New investor, regret minimization & leverage - recipe for disaster?
Replies: 14
Views: 856

Re: New investor, regret minimization & leverage - recipe for disaster?

I feel you OP. I'm 29 years old, learned everything I know about investing in the last 9 months and lump sum invested my life savings (18.5k) in December 2019 and another 8k (my bonus) on February 20th. I know it's not much, but starting my investment career with a 20% loss in 3 weeks is hard. Logi...
by todaysBob
Sun Mar 15, 2020 9:13 pm
Forum: Personal Investments
Topic: New investor, regret minimization & leverage - recipe for disaster?
Replies: 14
Views: 856

Re: New investor, regret minimization & leverage - recipe for disaster?

Updated the question with my modified plan. Will really appreciate everyone's thoughts!
by todaysBob
Sun Mar 15, 2020 9:08 pm
Forum: Personal Investments
Topic: New investor, regret minimization & leverage - recipe for disaster?
Replies: 14
Views: 856

Re: New investor, regret minimization & leverage - recipe for disaster?

People do this with stocks because they don't see them as real assets but as numbers jumping down on a screen. When you look back later, 29 is such a young age - you'll realize that any money you can put in over the next months and years will do better if stock markets stay down. Thanks much for th...
by todaysBob
Sun Mar 15, 2020 9:00 pm
Forum: Personal Investments
Topic: New investor, regret minimization & leverage - recipe for disaster?
Replies: 14
Views: 856

Re: New investor, regret minimization & leverage - recipe for disaster?

Hi, and welcome to the board. I totally understand where you are coming from as I am partly in the same position. I was 100% allocated to cash (pure luck) at the beginning of the year but deployed 50% of my cash before the market experienced its most severe downturns, so the thought of "if i h...
by todaysBob
Sun Mar 15, 2020 8:49 pm
Forum: Personal Investments
Topic: New investor, regret minimization & leverage - recipe for disaster?
Replies: 14
Views: 856

Re: New investor, regret minimization & leverage - recipe for disaster?

Your experience is a great indication that the drop was not "obvious" in advance. You had all the info everyone else did, but only in hindsight do we organize it in our heads to point out what was about to happen. So, remember that you don't know what will happen next - you've just had a ...
by todaysBob
Sun Mar 15, 2020 8:20 pm
Forum: Personal Investments
Topic: How to allocate 50k in this climate?
Replies: 13
Views: 783

Re: How to allocate 50k in this climate?

These are clearly not normal times, and I don’t know anyone who has done studies that factor in the obviously relevant information present now (e.g. futures trading literally just gapped down to a stopping point after a big rate cut and quantitative easing by the Fed). I agree and wish I had done t...
by todaysBob
Thu Mar 12, 2020 3:33 pm
Forum: Personal Investments
Topic: New investor, regret minimization & leverage - recipe for disaster?
Replies: 14
Views: 856

Re: New investor, regret minimization & leverage - recipe for disaster?

kareysue wrote: Thu Mar 12, 2020 2:57 pm why till 1800?
I would have to give up at some point! But yeah anything is possible.

Please note that monthly contributions($4.5k) will still be going into the market every month. The margin is reserved for minimizing my regret of missing out!
by todaysBob
Thu Mar 12, 2020 2:07 pm
Forum: Personal Investments
Topic: New investor, regret minimization & leverage - recipe for disaster?
Replies: 14
Views: 856

Re: New investor, regret minimization & leverage - recipe for disaster?

I think you are young. So nothing to worry about. But just wait for the market to settle first. How do you know the market won't fall back to 2008 levels? With democratic president, low oil prices, and other possible black swan events, maybe you can look into buying ibonds or more conservative inve...
by todaysBob
Thu Mar 12, 2020 4:23 am
Forum: Personal Investments
Topic: New investor, regret minimization & leverage - recipe for disaster?
Replies: 14
Views: 856

New investor, regret minimization & leverage - recipe for disaster?

Update After thinking through this a little more, here is my updated plan- 1. I want to stay fully invested(100% equities) to maximize my return since I don't need this money hopefully for 30+ years. 2. I do want to make use of these big corrections though, i.e put more money in whenever market tan...
by todaysBob
Thu Mar 12, 2020 2:57 am
Forum: Personal Investments
Topic: Moving against a multi-month downturn
Replies: 58
Views: 2927

Re: Moving against a multi-month downturn

I just started investing the end of December 2019. I have 70% Total Stock, 10% Int'l Stock, 20% Total Bonds. As of today I'm seeing -12.5% total returns, and after looking over all the news about the pandemic I'm convinced I'll be looking at -30% at the bottom. From all the back-testing I've resear...
by todaysBob
Thu Mar 12, 2020 2:31 am
Forum: Personal Investments
Topic: How much you lost/gain since Feb 20,2020 ?
Replies: 366
Views: 33002

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

-$120k/20% ($600k -> $480k)

vtsax:vtiax:vbtlx - 60:30:10
by todaysBob
Thu Mar 12, 2020 12:28 am
Forum: Investing - Theory, News & General
Topic: Tax loss harvesting small-cap value (VSIAX to IJS)
Replies: 4
Views: 290

Re: Tax loss harvesting small-cap value (VSIAX to IJS)

What I did for VTSAX->SPY - 1) Submit sell order for VTSAX before market closes. 2) Follow price of VTI(etf version of VTSAX) and based on its % change few mins before market close, estimate NAV that VTSAX will sell for. 3) Using #2, create a buy order for SPY. You can be little conservative and wor...
by todaysBob
Thu Mar 12, 2020 12:14 am
Forum: Investing - Theory, News & General
Topic: Tax loss harvesting small-cap value (VSIAX to IJS)
Replies: 4
Views: 290

Re: Tax loss harvesting small-cap value (VSIAX to IJS)

You should be able to sell VSIAX and then right away buy IJS with the unsettled funds, no need to bring in more cash.

I just did this with interactive brokers. I hope VG is same, may want to call them & confirm.
by todaysBob
Fri Mar 06, 2020 2:50 am
Forum: Personal Investments
Topic: Worst Timing :(
Replies: 45
Views: 7662

Re: Worst Timing :(

This is not anywhere near "worst timing". That award definitely goes to me. Waited for years(4+) on the sidelines, finally had the courage to just put everything in. Guess the date I swung for the fences? Yep you got it,Feb 19th 2020, vtsax - 83.79 all time high. Has been fun seeing it sl...
by todaysBob
Wed Mar 04, 2020 2:36 pm
Forum: Personal Investments
Topic: Worst Timing :(
Replies: 45
Views: 7662

Re: Worst Timing :(

This is not anywhere near "worst timing". That award definitely goes to me. Waited for years(4+) on the sidelines, finally had the courage to just put everything in. Guess the date I swung for the fences? Yep you got it,Feb 19th 2020, vtsax - 83.79 all time high. Has been fun seeing it sli...
by todaysBob
Mon Mar 02, 2020 8:04 pm
Forum: Investing - Theory, News & General
Topic: Investing & HCOL
Replies: 5
Views: 422

Investing & HCOL

So, a lot of tech workers in SF & Seattle(specially Amazon with a max cap on base pay) are living paycheck to paycheck so to speak. Their big mortgages, day care costs and car payments doesn't leave much to invest on a monthly cadence. They however have big(> $100k each time) RSU vests every 3 o...
by todaysBob
Mon Mar 02, 2020 7:00 pm
Forum: Investing - Theory, News & General
Topic: Okay, now when you do buy back in?
Replies: 230
Views: 21991

Re: Okay, now when you do buy back in?

mindboggling wrote: Mon Mar 02, 2020 3:23 pm Every day--corona or no corona--I ask myself if it is necessary to do something (anything) with my investments. So far the answer has been no.
Why do you have to ask everyday :o ?