Search found 24 matches

by wizard903
Tue Nov 17, 2020 7:21 pm
Forum: Personal Investments
Topic: I Bonds for Emergency Fund - Over Complicating?
Replies: 47
Views: 3372

Re: I Bonds for Emergency Fund - Over Complicating?

I think right now for me the biggest reason against I bonds is the money being inaccessible for 1 year. That would make my EF short whatever amount I put in for a year. I could keep my EF as it currently is and put new money to I bonds and then release that amount from the Ally account after a year...
by wizard903
Tue Nov 10, 2020 12:54 pm
Forum: Personal Finance (Not Investing)
Topic: Unexpectedly in higher tax bracket. Switch from mega back door Roth IRA to tax-deferred for the remainder of 2020?
Replies: 5
Views: 501

Re: Unexpectedly in higher tax bracket. Switch from mega back door Roth IRA to tax-deferred for the remainder of 2020?

Got it: Marginal tax rate vs. Effective marginal tax rate I was using taxable income (AGI - standard deduction) and the non-effective marginal tax rate for the calculations, assuming that all taxable income above $40,125 (after taking the standard deduction) will be taxed at 22%. One more thing: Sin...
by wizard903
Tue Nov 10, 2020 10:34 am
Forum: Personal Finance (Not Investing)
Topic: Unexpectedly in higher tax bracket. Switch from mega back door Roth IRA to tax-deferred for the remainder of 2020?
Replies: 5
Views: 501

Re: Unexpectedly in higher tax bracket. Switch from mega back door Roth IRA to tax-deferred for the remainder of 2020?

Thank you for the reply and vote of confidence. Stupid question: Why do you include the standard deduction of $12.4k with the start of the 22% bracket ($40,126)? My understanding is that, since Taxable Income = Adjusted Gross Income - (Standard) Deduction, the start of the 22% bracket is just $40,12...
by wizard903
Tue Nov 10, 2020 2:03 am
Forum: Personal Finance (Not Investing)
Topic: Unexpectedly in higher tax bracket. Switch from mega back door Roth IRA to tax-deferred for the remainder of 2020?
Replies: 5
Views: 501

Unexpectedly in higher tax bracket. Switch from mega back door Roth IRA to tax-deferred for the remainder of 2020?

A temporary increase in available work at the beginning of 2020, coupled with $10k of unemployment insurance that I received after (and no longer receive), have unexpectedly boosted my taxable income from $39k in 2019 to $61k in 2020. Approximately $11k of my taxable income, therefore, will be taxed...
by wizard903
Tue Oct 27, 2020 11:05 am
Forum: Personal Investments
Topic: Idiot Check: About to spend $6667 on I Bonds
Replies: 39
Views: 3440

Re: Idiot Check: About to spend $6667 on I Bonds

Thank you for the insightful and challenging responses. This forum is a diamond in the rough. Despite challenges folks have raised, I still view the I-Bond option favorably for my tiered EF given its diversification benefit and relative flexibility in the short- and long-term. If you think this as a...
by wizard903
Mon Oct 26, 2020 8:03 pm
Forum: Personal Investments
Topic: Idiot Check: About to spend $6667 on I Bonds
Replies: 39
Views: 3440

Re: Idiot Check: About to spend $6667 on I Bonds

Hi, sometimes I look at these from an absolute $$$ value rather than a percent, just so I can see how big or little a deal it is either way. Using quick and dirty math, 10k gives about $95 in interest vs $75. This may be adjusted slightly since its 11 months and also taxes, but you can decide if th...
by wizard903
Mon Oct 26, 2020 7:46 pm
Forum: Personal Investments
Topic: Idiot Check: About to spend $6667 on I Bonds
Replies: 39
Views: 3440

Re: Idiot Check: About to spend $6667 on I Bonds

Are you maxing 401 and Roth IRA?
As much as I can right now:
$6000 every January 1 + $1200/month to Roth IRA
15% per paycheck to 401(a): 7% employee + 8% employer, no additional match possible
by wizard903
Mon Oct 26, 2020 7:38 pm
Forum: Personal Investments
Topic: Idiot Check: About to spend $6667 on I Bonds
Replies: 39
Views: 3440

Idiot Check: About to spend $6667 on I Bonds

Tipswatcher's and others’ arguments for I Bonds as a 11-month investment that presently provides a greater, guaranteed return (.95%) than a CD (.8%) or high-yield savings account (.75%) are compelling. The possibility is new to me, however, and my relatively low income of $50k/year means that I nee...
by wizard903
Wed Oct 07, 2020 8:57 pm
Forum: Personal Investments
Topic: Should I not invest a lump sum today?
Replies: 13
Views: 1425

Re: Should I not invest a lump sum today?

Thank you for the clarifications and recommendations, everyone. It stung but I reinvested the full balance today.
by wizard903
Wed Oct 07, 2020 10:37 am
Forum: Personal Investments
Topic: Should I not invest a lump sum today?
Replies: 13
Views: 1425

Should I not invest a lump sum today?

Long story short, I sold my employer-managed funds yesterday to set up BrokerageLink, which requires the initial investment to transfer into a "Core" money market position—in effect, taking the balance out of the market for at least one day—before I can invest the balance in Fidelity index...
by wizard903
Thu Oct 01, 2020 10:17 am
Forum: Personal Investments
Topic: Is my employer's 401(a) target-date fund (.02% ER) sensible, or would it be better to approximate a 3-fund portfolio?
Replies: 17
Views: 1299

Re: Is my employer's 401(a) target-date fund (.02% ER) sensible, or would it be better to approximate a 3-fund portfolio

One nice thing about the t vs. R choice: you can change it (at least) each year, so don't worry about getting it perfect in year #1. As years go by your guessing ability is likely to improve. Thank goodness! :happy And thank you, FiveK, for the extensive response. After closely reading the wiki art...
by wizard903
Thu Oct 01, 2020 10:15 am
Forum: Personal Investments
Topic: Is my employer's 401(a) target-date fund (.02% ER) sensible, or would it be better to approximate a 3-fund portfolio?
Replies: 17
Views: 1299

Re: Is my employer's 401(a) target-date fund (.02% ER) sensible, or would it be better to approximate a 3-fund portfolio

Doctor Rhythm, that's extremely detailed and helpful information for a fellow UC employee to provide, especially given your close monitoring over time. Thank you. I have also been frustrated by the lack of transparency in knowing what constitutes some of UC Pathways underlying funds, such as the &qu...
by wizard903
Thu Oct 01, 2020 12:46 am
Forum: Personal Investments
Topic: Is my employer's 401(a) target-date fund (.02% ER) sensible, or would it be better to approximate a 3-fund portfolio?
Replies: 17
Views: 1299

Re: Is my employer's 401(a) target-date fund (.02% ER) sensible, or would it be better to approximate a 3-fund portfolio

But if you have no pension, it might be worth your while to revisit the "all Roth (except for 401a)" strategy. That strategy might in fact be correct, but reasons (1) and (2) above won't be why. Thank you. I'll read those sections extremely carefully because I have been operating on the s...
by wizard903
Wed Sep 30, 2020 11:24 pm
Forum: Personal Investments
Topic: Is my employer's 401(a) target-date fund (.02% ER) sensible, or would it be better to approximate a 3-fund portfolio?
Replies: 17
Views: 1299

Re: Is my employer's 401(a) target-date fund (.02% ER) sensible, or would it be better to approximate a 3-fund portfolio

Why aren't you contributing any to tax-deferred accounts? Do you mean a 403(b) or 457(b), for example? Tax-deferred options are available to me but all of my voluntary contributions go to a Roth IRA (via a mega back door conversion) because I'd rather pay taxes now and have tax-free growth and tax-...
by wizard903
Wed Sep 30, 2020 8:47 pm
Forum: Personal Investments
Topic: Is my employer's 401(a) target-date fund (.02% ER) sensible, or would it be better to approximate a 3-fund portfolio?
Replies: 17
Views: 1299

Re: Is my employer's 401(a) target-date fund (.02% ER) sensible, or would it be better to approximate a 3-fund portfolio

Might as well stay with the target-date fund... I'm thinking so, too. Thanks for the feedback. That is a great ER for a fund that has a good composition. Happy to hear it. Thank you for chiming in. The TDF looks good, and is a good choice if you don’t want the hassle of shifting your portfolio more...
by wizard903
Wed Sep 30, 2020 5:32 pm
Forum: Personal Investments
Topic: Is my employer's 401(a) target-date fund (.02% ER) sensible, or would it be better to approximate a 3-fund portfolio?
Replies: 17
Views: 1299

Is my employer's 401(a) target-date fund (.02% ER) sensible, or would it be better to approximate a 3-fund portfolio?

My employer, the University of California, requires me to contribute 7% per paycheck into a tax-deferred 401(a) account, which they compensate with 8%. All of my voluntary contributions, in contrast, go into a Fidelity Roth IRA via maximum direct contribution and mega back door Roth conversion. The ...
by wizard903
Fri Sep 25, 2020 3:06 pm
Forum: Personal Investments
Topic: Standard Boglehead Portfolio plus Small Cap Value (SCV) tilt from AVUV. Does my tilt percentage make sense?
Replies: 28
Views: 1555

Re: Standard Boglehead Portfolio plus Small Cap Value (SCV) tilt from AVUV. Does my tilt percentage make sense?

Even if you do need the backdoor Roth method, the limit each year is $6k right now. The other $9k will need to go into some other kind of account. Do you have any kind of retirement plan at work? That is the place to start. Will you have a pension? Thankfully, my employer is a university that offer...
by wizard903
Fri Sep 25, 2020 2:54 pm
Forum: Personal Investments
Topic: Standard Boglehead Portfolio plus Small Cap Value (SCV) tilt from AVUV. Does my tilt percentage make sense?
Replies: 28
Views: 1555

Re: Standard Boglehead Portfolio plus Small Cap Value (SCV) tilt from AVUV. Does my tilt percentage make sense?

I'm grateful to everyone for the thoughtful posts. They have made me reconsider my basic asset allocation and question the potential benefits of tilting. My inclination, at present, is not (yet) to tilt, but instead to change my stock/bond allocation from 70/30 to 75/25 and hold that allocation as I...
by wizard903
Fri Sep 25, 2020 12:22 am
Forum: Personal Investments
Topic: Standard Boglehead Portfolio plus Small Cap Value (SCV) tilt from AVUV. Does my tilt percentage make sense?
Replies: 28
Views: 1555

Re: Standard Boglehead Portfolio plus Small Cap Value (SCV) tilt from AVUV. Does my tilt percentage make sense?

There are countless threads on this in the forum. That said I hold small value but not at 25 percent of equity.
Yeah, I feel like I've skimmed through most of them and have read many in detail.
Would you mind my asking at what percent of equity you hold SCV and why?
by wizard903
Thu Sep 24, 2020 11:45 pm
Forum: Personal Investments
Topic: Standard Boglehead Portfolio plus Small Cap Value (SCV) tilt from AVUV. Does my tilt percentage make sense?
Replies: 28
Views: 1555

Re: Standard Boglehead Portfolio plus Small Cap Value (SCV) tilt from AVUV. Does my tilt percentage make sense?

I am thinking of William Bernstein's recommended portfolios, he likes small and value tilts, and I think he tilts more. I'm looking at some sample portfolios and he has small and/or value index funds as something closer to 50% of stocks. But I don't know what people around here typically do. The re...
by wizard903
Thu Sep 24, 2020 11:40 pm
Forum: Personal Investments
Topic: Standard Boglehead Portfolio plus Small Cap Value (SCV) tilt from AVUV. Does my tilt percentage make sense?
Replies: 28
Views: 1555

Re: Standard Boglehead Portfolio plus Small Cap Value (SCV) tilt from AVUV. Does my tilt percentage make sense?

Probably not worth the extra complexity (in my opinion) unless you have the conviction to go for 20% of equities in SCV. Would you mind explaining why you think so? The complexity is no problem for me as I don't mind rebalancing monthly. Is something closer to 20% of equity required, or strongly re...
by wizard903
Thu Sep 24, 2020 9:23 pm
Forum: Personal Investments
Topic: Standard Boglehead Portfolio plus Small Cap Value (SCV) tilt from AVUV. Does my tilt percentage make sense?
Replies: 28
Views: 1555

Standard Boglehead Portfolio plus Small Cap Value (SCV) tilt from AVUV. Does my tilt percentage make sense?

I recently paid off my graduate-school debt and have been investing in accordance with general Boglehead philosophy as much as possible, given my income of $50k/year. Fama and French's research (as elaborated by Ben Felix) has persuaded me to tilt my portfolio to SCV. Avantis' AVUV ETF (.25% ER) is ...
by wizard903
Sat Sep 19, 2020 8:59 pm
Forum: Personal Investments
Topic: Small Cap Value Mutual Fund Suggestions for Fidelity User
Replies: 12
Views: 1073

Re: Small Cap Value Mutual Fund Suggestions for Fidelity User

Many prefer the S&P indices over Russell. VIOV is another option. The only real hidden cost is the transaction cost (such as bid-ask spread), as I think Fidelity is now commission-free for all US-listed stocks and ETFs. Thanks. Is there any S&P 600 Value mutual fund that's commission-free a...
by wizard903
Sat Sep 19, 2020 12:23 am
Forum: Personal Investments
Topic: What Blend of These 2 Fidelity Funds Approximates TSM
Replies: 12
Views: 980

Re: What Blend of These 2 Fidelity Funds Approximates TSM

I calculated this recently using Fidelity's hypothetical trade tool:

FSKAX
24-26-26
06-06-06
02-02-02

FXAIX (83%) + FSMAX (17%)
24-26-26
06-06-06
02-02-02

FXAIX (83%) + FSMDX (10%) + FSSNX (7%)
25-26-24
07-06-05
02-02-02