Search found 311 matches

by ivgrivchuck
Wed Dec 02, 2020 12:00 am
Forum: Personal Investments
Topic: 89 year old mother with cash from house sale
Replies: 4
Views: 299

Re: 89 year old mother with cash from house sale

Given the above assumptions, should she simply put her cash in a money market account? Should we put some in a short-term bond fund? My concern is that if she needed a high level care that need could come within the next few years per family history, so there really isn't much room for risk. If I'm...
by ivgrivchuck
Tue Dec 01, 2020 11:52 pm
Forum: Personal Investments
Topic: EE Bonds after 20 years
Replies: 15
Views: 1216

Re: EE Bonds after 20 years

Tracker968 wrote: Tue Dec 01, 2020 11:41 pm This is the first I have heard of this "doubling". Is that still true for new EE bonds? That would amount to 72/20=3.6% interest rate right?
Yes.
by ivgrivchuck
Tue Dec 01, 2020 6:40 pm
Forum: Investing - Theory, News & General
Topic: Replacing low-yield parts of BND with HYSA/Cash?
Replies: 21
Views: 1350

Re: Replacing low-yield parts of BND with HYSA/Cash?

My mistake. 2000-2015 TBM outperformed US equities. I could only backtest TBM on portfoliovisualizer to 1987. Which data source or time period had 20+ year underperformances? After the huge 1929 drop, it took a really long time for stock market to recover. I'd say you probably find around 30 years ...
by ivgrivchuck
Tue Dec 01, 2020 1:07 am
Forum: Investing - Theory, News & General
Topic: Replacing low-yield parts of BND with HYSA/Cash?
Replies: 21
Views: 1350

Re: Replacing low-yield parts of BND with HYSA/Cash?

Short term timeframes for liquidity are the reason investors hold cash and bonds. If we're looking at illiquid timeframes of 5 years+, equities are practically guaranteed equal or significant outperformance. That is not true at all. Just check historical charts or run some monte carlo sims. It star...
by ivgrivchuck
Tue Dec 01, 2020 12:07 am
Forum: Investing - Theory, News & General
Topic: Replacing low-yield parts of BND with HYSA/Cash?
Replies: 21
Views: 1350

Re: Replacing low-yield parts of BND with HYSA/Cash?

eshkidd wrote: Mon Nov 30, 2020 11:58 pm
None of those are very liquid.
That's of course true, but most individuals are (or should be!) long term investors, so liquidity is rarely an issue.

There are exceptions of course.
by ivgrivchuck
Mon Nov 30, 2020 10:42 pm
Forum: Investing - Theory, News & General
Topic: Replacing low-yield parts of BND with HYSA/Cash?
Replies: 21
Views: 1350

Re: Replacing low-yield parts of BND with HYSA/Cash?

Something like, 40% HYSA, with the rest of the same parts of BND: LT Treasury, LT Corporate, IT Corporate, and MBS? Wouldn't this offer improved risk-adjusted returns than BND currently? Sounds overly complicated. Why not to skip bonds entirely and go for HYSAs, I/EE-bonds, MYGAs? Higher yield, les...
by ivgrivchuck
Mon Nov 30, 2020 3:28 pm
Forum: Personal Investments
Topic: Torn between robo advisor and diy
Replies: 25
Views: 1899

Re: Torn between robo advisor and diy

DIY is a lot simpler than it sounds. Whether or not you choose to use a robo, you still need to decide your risk level (what % of your investable assets should go into stocks). Let's say you decide that 70/30 is the right for you. And 30% of international is a good compromise if you don't want to ta...
by ivgrivchuck
Mon Nov 30, 2020 3:01 am
Forum: Personal Investments
Topic: Switch from target fund to VOO or QQQ
Replies: 34
Views: 1853

Re: Switch from target fund to VOO or QQQ

All are very good points. However, to me, the biggest difference is cash vs. invested. I have held too much cash over the years and haven't taken full advantage of the bull market. The reason for keeping so much cash is that I didn't know when it was a good time to enter into the market. Now lookin...
by ivgrivchuck
Mon Nov 30, 2020 2:35 am
Forum: Investing - Theory, News & General
Topic: How does the stock market return 7%?
Replies: 62
Views: 6124

Re: How does the stock market return 7%?

What innovation and productivity gains are going to drive 7% inflation adjusted returns of the future? Mass automation? But that would kill demand due to mass unemployment!! With the interest rates now at zero, we shouldn't expect 7% inflation adjusted returns going forward. If we get to 4%, that's...
by ivgrivchuck
Mon Nov 30, 2020 2:00 am
Forum: Personal Investments
Topic: Switch from target fund to VOO or QQQ
Replies: 34
Views: 1853

Re: Switch from target fund to VOO or QQQ

All are very good points. However, to me, the biggest difference is cash vs. invested. I have held too much cash over the years and haven't taken full advantage of the bull market. The reason for keeping so much cash is that I didn't know when it was a good time to enter into the market. Now lookin...
by ivgrivchuck
Mon Nov 30, 2020 1:54 am
Forum: Personal Investments
Topic: Switch from target fund to VOO or QQQ
Replies: 34
Views: 1853

Re: Switch from target fund to VOO or QQQ

Yup, it is performance chasing, but I think that got a bad name from chasing performance with actively managed funds. With rules based index funds, performance chasing is sort of like watching big rigs race. There is no fast acceleration and once one pulls out ahead, it is going to stay there for a...
by ivgrivchuck
Mon Nov 30, 2020 12:28 am
Forum: Personal Investments
Topic: Taxable account Taxes
Replies: 2
Views: 408

Re: Taxable account Taxes

I have been reading that ETF’s are better for our taxable account. When I originally opened it I bought VTSAX. Should I trade VTSAX for VTI at this point? Is this considered a wash sale? Thank you 😊 There is no need to convert vanguard funds into etfs. They are not better. Some prefer toyota, some ...
by ivgrivchuck
Mon Nov 30, 2020 12:22 am
Forum: Personal Investments
Topic: Switch from target fund to VOO or QQQ
Replies: 34
Views: 1853

Re: Switch from target fund to VOO or QQQ

I have invested in fidelity freedom 2035 (FFTHX) in my ROTH IRA account and 401K account. I would like to switch it to VOO or QQQ due to FFTHX's high expense ratio and slow growth. What is the best strategy? Should I sell FFTHX all at once and buy VOO or QQQ all at once right away? Or buy VOO or QQ...
by ivgrivchuck
Sun Nov 29, 2020 8:30 pm
Forum: Personal Investments
Topic: Young investor needs help
Replies: 7
Views: 502

Re: Young investor needs help

1) At my age, re: Roth... should I remain in 100% stocks, or diversify to the Boglehead 3 fund portfolio? You should remain 100% in stocks. Your emergency fund and house downpayment fund acts as stabilizer (bond replacement). 2) I'm looking at homes in the $500k range to purchase, do you recommend ...
by ivgrivchuck
Sun Nov 29, 2020 6:54 pm
Forum: Personal Investments
Topic: Critique My Portfolio Mix & Retirement Plan
Replies: 12
Views: 677

Re: Critique My Portfolio Mix & Retirement Plan

Aeiouoiea wrote: Sun Nov 29, 2020 6:30 pm
And why is that exactly? What am I missing here?
Growth in roth is tax-free.

Growth in 401k is subject to progressive taxation.

That's why it is always best to keep your highest expected return assets in roth.
by ivgrivchuck
Sun Nov 29, 2020 5:49 pm
Forum: Personal Investments
Topic: Chinese Government bond
Replies: 16
Views: 1541

Re: Chinese Government bond

Hello everyone, If I wanted to diversify my currency exposure away from being solely in USD - would investing in Chinese government bonds help me achieve this? If yes, how do I invest in these bonds - are there certain ETFs you are aware of? Also, how do I decide between short term vs. intermediate...
by ivgrivchuck
Sun Nov 29, 2020 5:30 pm
Forum: Personal Investments
Topic: EE Bonds for high income couple in their 30's
Replies: 31
Views: 2124

Re: EE Bonds for high income couple in their 30's

Thanks for the link to that other thread. Total Bond Fund is mentioned so often here that I haven't really considered too many other fixed income options until now. Might look into I bonds as a hybrid emergency fund as well. And I haven't set anything up yet via Treasury Direct...I've heard some le...
by ivgrivchuck
Sun Nov 29, 2020 5:23 pm
Forum: Personal Investments
Topic: EE Bonds for high income couple in their 30's
Replies: 31
Views: 2124

Re: EE Bonds for high income couple in their 30's

Investing in bonds - especially in your 30's and especially right now - makes no sense to me at all. To the contrary, investing in EE-bonds now makes more sense than ever! - Yield is over 2% higher than in the corresponding treasuries - The expected stock market return is at historical lows (based ...
by ivgrivchuck
Sun Nov 29, 2020 12:06 am
Forum: Personal Investments
Topic: Willing to share your Taxable Portfolio?
Replies: 138
Views: 10164

Re: Willing to share your Taxable Portfolio?

iudiehard1 wrote: Sat Nov 28, 2020 4:13 pm Happy Thanksgiving
See my signature.
by ivgrivchuck
Sat Nov 28, 2020 11:26 pm
Forum: Personal Investments
Topic: Inclined to payoff mortgage
Replies: 67
Views: 3749

Re: Inclined to payoff mortgage

Thank you! So if I got the numbers roughly right, about your net worth: - You have around $400k equity in the house - You have around $400k invested in stock market I think that's a pretty nice balance: 50/50 house equity/stocks. Some safety in house equity and some higher risk/return in the stock ...
by ivgrivchuck
Sat Nov 28, 2020 11:11 pm
Forum: Personal Investments
Topic: Where do you keep cash for future car purchases?
Replies: 34
Views: 2928

Re: Where do you keep cash for future car purchases?

lessismore22 wrote: Sat Nov 28, 2020 8:01 pm I'm curious where fellow BHs keep their cash for future car purchases with interests rates paying so little these days?
Savings account, 0.6%.
by ivgrivchuck
Sat Nov 28, 2020 10:53 pm
Forum: Personal Investments
Topic: Diversifying beyond Total Stock Market
Replies: 3
Views: 768

Re: Diversifying beyond TMI

Basically, the author advocates for equal inclusion of large-growth, large-value, small-growth, small-value funds instead of TMI as historically small-value funds outperformed TMI (of course, it depends on how you slice data). Nothing new under the sun. The problem is that all stocks in the stock m...
by ivgrivchuck
Sat Nov 28, 2020 7:08 pm
Forum: Personal Investments
Topic: EE Bonds for high income couple in their 30's
Replies: 31
Views: 2124

Re: EE Bonds for high income couple in their 30's

Personally, I'm willing to take more risk for money 20 years out, and not putting that money into bonds. I keep some money in Series I Savings Bonds as part of my short term 'emergency fund'. This is where I keep netting out. I like EE bonds relative to holding additional bonds outside of my retire...
by ivgrivchuck
Sat Nov 28, 2020 6:31 pm
Forum: Personal Finance (Not Investing)
Topic: New car - cash or credit?
Replies: 38
Views: 2939

Re: New car - cash or credit?

We've done really well by buying used cars which are around 2-4 years old. And then driving them for the next 10 years or so. At that point the car has already taken the biggest depreciation hit. There is some risk involved because you can't know how the previous owner treated the car, but the odds ...
by ivgrivchuck
Sat Nov 28, 2020 6:11 pm
Forum: Personal Investments
Topic: EE Bonds for high income couple in their 30's
Replies: 31
Views: 2124

Re: EE Bonds for high income couple in their 30's

I believe that EE-bonds are a really good investment that many people overlook. Even after taxes, the yield is higher than keeping bonds in traditional.

Now of course there is a purchase limit, $20k/year per couple. So some people might think that it's not worth the trouble.
by ivgrivchuck
Sat Nov 28, 2020 6:03 pm
Forum: Personal Investments
Topic: If one were to start investing today - late to the game
Replies: 42
Views: 5183

Re: If one were to start investing today - late to the game

Thank you for the clarifications. Everything you've written is in alignment with the ideas and approach that I've been thinking about.This forum has been tremendously helpful. As you and many others have suggested, the bulk of my investment will be something fairly straight forward and simple-- lik...
by ivgrivchuck
Fri Nov 27, 2020 2:03 am
Forum: Personal Finance (Not Investing)
Topic: Best Decision
Replies: 7
Views: 1522

Re: Best Decision

Fellow Bogleheads, hoping to use your wisdom with my current situation. Rounding #s to the nearest 25K Main home - $950K value - $750K mortgage at 3% - 30 years left Rental property - $475K value - $250K mortgage at 2.5% - 15 years left - a bit of a loss after all is said and done. Investments - 40...
by ivgrivchuck
Thu Nov 26, 2020 9:16 pm
Forum: Personal Investments
Topic: Roboadvisors with fixed fees
Replies: 18
Views: 953

Re: Roboadvisors with fixed fees

The benefits from tax-loss harvesting are likely to far outweigh the AUM fee. OP may not be aware of this. When expressed as a fraction of the portfolio value, this economic benefit amounts to an incremental return of 0.58% in the current year for the client facing the low tax burden, and an increm...
by ivgrivchuck
Thu Nov 26, 2020 8:23 pm
Forum: Personal Investments
Topic: Reviewing Investment Choices
Replies: 5
Views: 572

Re: Reviewing Investment Choices

1) Is our allocation right for a 85/15 Stock/Bond ratio ? Any changes required to his/her 401k/Roth/taxable accounts ? You seem to be in a good shape. 2) Where should we keep the International Stock fund ? 401K or taxable ? We are planning to re-balance his 401k by selling international and get to ...
by ivgrivchuck
Thu Nov 26, 2020 6:56 pm
Forum: Investing - Theory, News & General
Topic: Who actually rebalanced recently?
Replies: 92
Views: 5524

Re: Who actually rebalanced recently?

Like many others I follow the 5% rebalancing rule.

- If stocks/bonds ratio goes more than 5% off from the target allocation, then I rebalance.
- I never rebalance U.S./International.

There hasn't been any reason to rebalance since the spring.
by ivgrivchuck
Thu Nov 26, 2020 6:52 pm
Forum: Personal Investments
Topic: Do I need Bonds in my portfolio? [Portfolio Review Request]
Replies: 83
Views: 6423

Re: Do I need Bonds in my portfolio?

Can someone please explain to me why I should tie up so much money in dismal investments. What is the wisdom behind owning bonds? Is bond investing still important in today's environment? All of us need some money for daily expenses. That is money that we can't afford to lose. That money goes into ...
by ivgrivchuck
Wed Nov 25, 2020 7:02 pm
Forum: Personal Investments
Topic: Adjust or keep current allocation?
Replies: 8
Views: 709

Re: Readjust or keep current allocation?

dannyj wrote: Wed Nov 25, 2020 1:39 pm Thank you all in advance for any assistance or feedback you may have.
Just keep everything in the target date fund. The target date fund is very close to 3-fund portfolio, but it automatically adjusts weights over time as you get closer to retirement.
by ivgrivchuck
Wed Nov 25, 2020 4:28 pm
Forum: Personal Investments
Topic: Lazy Investor's dilemma: TLH from Betterment and Wash sale
Replies: 5
Views: 336

Re: Lazy Investor's dilemma: TLH from Betterment and Wash sale

I do enjoy the convenience of Betterment; especially the Tax-loss-harvesting + risk balancing. However, I am learning about wash sales . From my reading, Betterment cannot fully avoid wash-sale with TLH unless I move all of my investments into them. (which is not an option even if I wanted to). It ...
by ivgrivchuck
Tue Nov 24, 2020 11:04 pm
Forum: Personal Investments
Topic: Ally invest
Replies: 7
Views: 774

Re: Ally invest

Cpadave wrote: Tue Nov 24, 2020 8:36 am If you open a high savings account with ally, would you be able to make same day trade of ETF using that money with ally invest? Thanks
Yes, I've done that.
by ivgrivchuck
Tue Nov 24, 2020 6:37 pm
Forum: Investing - Theory, News & General
Topic: Why are lifecycle funds so equity-heavy?
Replies: 59
Views: 3866

Re: Why are lifecycle funds so equity-heavy?

What am I missing? Are these funds simply waiting to be rebalanced after a rally for stocks? Have people not noticed the split? Is this advice out of date? Or is there an obvious answer that I'm just missing? Theoretically the optimum way of investing for retirement is to stay near 100% in equities...
by ivgrivchuck
Tue Nov 24, 2020 4:30 pm
Forum: Personal Investments
Topic: Is this acceptable "market timing"?
Replies: 56
Views: 3263

Re: Is this acceptable "market timing"?

I am about 60/40 stock/bond. The big indexes. It would seem to me that with the good virus news, over the next 2-3 years this economy is going to come back big so I am thinking about going 80/20. I have about 1.5 in with 2.5 years to my first RMD. I would love to get that to 2m before that happens ...
by ivgrivchuck
Tue Nov 24, 2020 1:53 pm
Forum: Personal Investments
Topic: How did you determine your asset allocation?
Replies: 38
Views: 2104

Re: How did you determine your asset allocation?

I noticed you are in savings bonds in your signature. Mind explaining how you came around the that decision? Thanks. * I-bonds are paying 1.7% at the moment. Plus they are excluded from state taxes. Plus taxation is deferred. That's clearly better than almost anything else available. * EE-bonds are...
by ivgrivchuck
Tue Nov 24, 2020 12:56 pm
Forum: Personal Investments
Topic: How did you determine your asset allocation?
Replies: 38
Views: 2104

Re: How did you determine your asset allocation?

Appreciate the comments. I think I’ll stick with 70/30 for about 5 years then reassess. Will probably stick to cash instead of bonds given the low yields for time being, and wanting to use that as ballast/risk less (except for nastily ole inflation, but hopefully stock gains will help with the infl...
by ivgrivchuck
Tue Nov 24, 2020 3:20 am
Forum: Personal Investments
Topic: VWO
Replies: 66
Views: 5527

Re: VWO

PennyWise7 wrote: Tue Nov 24, 2020 2:25 am Hey, bumping this thread for more on VEA/VWO or VXUS. Any one have strong feelings one way or another?
If you want to use market weights you choose VXUS.

If you want to under or overweight emerging you use VEA/VWO.
by ivgrivchuck
Tue Nov 24, 2020 1:59 am
Forum: Personal Investments
Topic: How did you determine your asset allocation?
Replies: 38
Views: 2104

Re: How did you determine your asset allocation?

How did you decide what your asset allocation should be? Hoping to hear some advice on mine. I researched what retirement target funds do. And what would be mathematically optimal. Then I tried to factor in that I'm not only saving for retirement, but also have some shorter term goals (like childre...
by ivgrivchuck
Mon Nov 23, 2020 11:25 am
Forum: Personal Investments
Topic: Late to investing - Seeking investing advice
Replies: 19
Views: 1371

Re: Late to investing - Seeking investing advice

3. We were planning to purchase a house but had to hold off because of a pontential move to another city. We would still like to purchase it within the next 2-3 years. Any advice on how to invest the downpayment that we have set aside. It is currently deposited in a savings account in BofA. - Best ...
by ivgrivchuck
Sun Nov 22, 2020 3:09 pm
Forum: Personal Investments
Topic: To take out mortgage or buy house outright?
Replies: 52
Views: 3406

Re: To take out mortgage or buy house outright?

I don't know how to begin weighing these two options. Any insight or suggestions would be most gratefully received! I'd go for a 15-year mortgage if you can get it at a reasonable price. This will benefit you in two ways: 1) the spread between the expected stock market return and mortgage interest ...
by ivgrivchuck
Sat Nov 21, 2020 8:09 pm
Forum: Personal Investments
Topic: How to best invest cash to "hide" income for a year? (house sale, ACA cliff, etc.)
Replies: 32
Views: 2859

Re: How to best invest cash to "hide" income for a year? (house sale, ACA cliff, etc.)

Thanks for any thoughts/advice. Savings accounts and no-penalty-cds sound like your best option. Bonds are not risk-free. There is duration risk and credit risk. I wouldn't recommend them considering your situation. If you want to take some risk to earn higher returns it's better to do it in the st...
by ivgrivchuck
Sat Nov 21, 2020 7:48 pm
Forum: Personal Investments
Topic: what do bogleheads do with taxable acct?
Replies: 32
Views: 3543

Re: what do bogleheads do with taxable acct?

So my Question is what should I do with taxable account going forward? Should I just keep swing trading or should I just buy something like VOO or VTI and hold? My goal is to have maybe 1Mil by the age of 60. Is that possible for me? Stop the swing trading immediately! You are basically playing hig...
by ivgrivchuck
Sat Nov 21, 2020 4:33 pm
Forum: Personal Investments
Topic: Help with portfolio investment plan for a couple in their early late 20s/early 30s
Replies: 25
Views: 1962

Re: Help with portfolio investment plan for a couple in their early late 20s/early 30s

The expected stock market return is around the same as the interest rates in your loans (especially after you consider taxes). But investing in stocks carries a significant risk, while paying back loans gives you a risk-free return. so I might be getting stuck on the word “return” but is it that pa...
by ivgrivchuck
Sat Nov 21, 2020 2:29 pm
Forum: Personal Investments
Topic: Where to safely park $200k
Replies: 24
Views: 3114

Re: Where to safely park $200k

By stock you mean an index fund like 500 or total market? Yes. Either would work. ...and either might not work. :happy Gill To be clear: - If you want to have absolute safety (and I think this is the most sensible choice): 100% into savings account/no-penalty cd - If you want to take some risk to h...
by ivgrivchuck
Sat Nov 21, 2020 1:09 am
Forum: Personal Investments
Topic: Where to safely park $200k
Replies: 24
Views: 3114

Re: Where to safely park $200k

viajero wrote: Sat Nov 21, 2020 1:03 am
By stock you mean an index fund like 500 or total market?
Yes. Either would work.
by ivgrivchuck
Sat Nov 21, 2020 12:25 am
Forum: Personal Investments
Topic: Where to safely park $200k
Replies: 24
Views: 3114

Re: Where to safely park $200k

I think you need to decide whether you will need the money closer to 1 year from now or 4. There’s a big difference in the amount of risk you can take for those timeframes. If 4 years I would take a lot more risk. Possibly a safer mix of stocks and muni bond fund. 60-40; 50-50. If 1 year then yes h...
by ivgrivchuck
Fri Nov 20, 2020 9:08 pm
Forum: Investing - Theory, News & General
Topic: How to control spending if you only live off of dividends but dividends are uneven?
Replies: 43
Views: 2864

Re: How to control spending if you only live off of dividends but dividends are uneven?

vu8 wrote: Fri Nov 20, 2020 4:21 pm I know that dividends are just returns of capital, but I really like the idea of only spending dividends and hate selling anything.
There is no rational reason to do what you're trying to doing. There are many ways to make one's life difficult and miserable.
by ivgrivchuck
Fri Nov 20, 2020 8:50 pm
Forum: Personal Investments
Topic: leverage in low correlated assets
Replies: 19
Views: 916

Re: leverage in low correlated assets

I have quite some fixed assets besides this. I want the best average return for my liquid ones if I have 500k. i rather see a 10% chance of making it 6M and a 90% chance of losing it all than a 100% chance of making it 550k in the same period. I know this wouldn't be the case for most people. That'...