Search found 1110 matches

by JustinR
Sat Nov 09, 2019 10:21 pm
Forum: Investing - Theory, News & General
Topic: How often should someone rebalance?
Replies: 43
Views: 3116

Re: How often should someone rebalance?

I’m Using a 3 fund portfolio. And over the last few years I rebalance twice per year. These dates are set, and are unrelated to which day the market is up or down. Is twice per year too often or too few times per year to rebalance? I’m sure the data varies on this topic but what do the smart people...
by JustinR
Wed Nov 06, 2019 12:19 am
Forum: Investing - Theory, News & General
Topic: Dividend investing vs. index investing
Replies: 30
Views: 2185

Re: Dividend investing vs. index investing

Dividend investors are just misguided souls who will have less money.
by JustinR
Sun Oct 20, 2019 6:43 pm
Forum: Investing - Theory, News & General
Topic: hymb, dividends, portfolio.
Replies: 15
Views: 1406

Re: hymb, dividends, portfolio.

james7777 wrote:
Sun Oct 20, 2019 8:47 am
2) are dividends a huge fraud and mind game?
Yep.
by JustinR
Sat Oct 19, 2019 4:17 am
Forum: Investing - Theory, News & General
Topic: 3 fund vs target date
Replies: 21
Views: 2389

Re: 3 fund vs target date

They're the same thing.
by JustinR
Sun Oct 13, 2019 6:13 pm
Forum: Investing - Theory, News & General
Topic: Understanding impact of dividends on "Total Gain" column
Replies: 5
Views: 703

Re: Understanding impact of dividends on "Total Gain" column

I think an easier way of framing this question is assuming you didn't reinvest dividends. 1) Your cost basis is $100 and it grows to $110. 2) Then a $5 dividend is issued and sent to your bank, which brings your invested amount to $105. 3) Does the gain column on Vanguard say $10 or $5? Edit: So fro...
by JustinR
Wed Sep 18, 2019 7:15 am
Forum: Investing - Theory, News & General
Topic: DCA vs. Lump Sum- an interesting analysis
Replies: 62
Views: 3853

Re: DCA vs. Lump Sum- an interesting analysis

Isn't it sad that even though DCA is proven to be statistically and mathematically worse, illogical, and doesn't even make any sense in the first place, that we'll be talking about it until the end of time? Human nature is fun. In 2050 there will still be Boglehead threads about if someone should lu...
by JustinR
Fri Sep 13, 2019 10:15 pm
Forum: Investing - Theory, News & General
Topic: Vanguard Flagship Services -- Another One Bites the Dust
Replies: 51
Views: 8676

Re: Vanguard Flagship Services -- Another One Bites the Dust

Explain why you need or want a "Vanguard Financial Planner"

This is a good thing because it means less expenses for all of us.
by JustinR
Wed Sep 11, 2019 2:55 pm
Forum: Investing - Theory, News & General
Topic: Can Traditional IRA or 401K dollars remain completely tax free?
Replies: 19
Views: 1574

Re: Can Traditional IRA or 401K dollars remain completely tax free?

Can $1 invested in a Traditional account remain completely tax free? Example: In retirement you withdraw the amount to cover the standard deduction from your Traditional IRA or 401K. So for today's tax law you could avoid tax on that $24,400? Assuming you follow all withdrawal rules. Yes, and you c...
by JustinR
Sun Sep 08, 2019 8:58 pm
Forum: Investing - Theory, News & General
Topic: The case for considering overall career marginal tax when deciding between trad and Roth.
Replies: 25
Views: 2058

Re: The case for considering overall career marginal tax when deciding between trad and Roth.

I don't know...to get into that situation just seems like the result of poor planning to me. You bring up “poor planning” often in the trad/Roth threads. Do you do this with awareness of how recently Roth availability has become a factor for us old folks? Your “good planning” works for people who w...
by JustinR
Sun Sep 08, 2019 8:42 am
Forum: Investing - Theory, News & General
Topic: The case for considering overall career marginal tax when deciding between trad and Roth.
Replies: 25
Views: 2058

Re: The case for considering overall career marginal tax when deciding between trad and Roth.

Sorry, I never meant to you imply could withdraw >$100,000 TIRA per year tax free. Like the quote says, that refers to $80k in taxable withdrawals and $27k in TIRA withdrawals tax free. Which is pretty much enough to cover 99% of people in retirement. I've heard that 97% of statistics are made up o...
by JustinR
Sun Sep 08, 2019 3:35 am
Forum: Investing - Theory, News & General
Topic: The case for considering overall career marginal tax when deciding between trad and Roth.
Replies: 25
Views: 2058

Re: The case for considering overall career marginal tax when deciding between trad and Roth.

A couple can easily withdraw >$100,000 a year without paying a single penny of tax: This statement is really misleading in a thread on IRA procedures. One cannot withdraw anywhere near that amount from a traditional IRA without paying taxes, as the post you quoted below indicates in red text. ...a ...
by JustinR
Sat Sep 07, 2019 10:12 pm
Forum: Investing - Theory, News & General
Topic: The case for considering overall career marginal tax when deciding between trad and Roth.
Replies: 25
Views: 2058

Re: The case for considering overall career marginal tax when deciding between trad and Roth.

Traditional is always better than a Roth, due to your #2 reason and the Roth conversion ladder. A couple can easily withdraw >$100,000 a year without paying a single penny of tax: ...a couple MFJ both age 65+ could have $78,750 total in qualified dividends and long term capital gains, and take $27,0...
by JustinR
Sat Aug 31, 2019 9:47 pm
Forum: Investing - Theory, News & General
Topic: Receiving $100K per year on a $2.5MM Portfolio
Replies: 35
Views: 7899

Re: Receiving $100K per year on a $2.5MM Portfolio

I just read an article on Business Insider that stated with a $2.5MM portfolio that one could receive $100K per year in income. My question is: What exactly are the investments that would generate that amount of income? What kind of stock/bond mix would do it? I'm 68 years old so taking a whole bun...
by JustinR
Sat Aug 31, 2019 2:00 am
Forum: Personal Investments
Topic: Should I invest 100k into a total index or do it slowly
Replies: 58
Views: 6981

Re: Should I invest 100k into a total index or do it slowly

I will be investing 5 k per month into a vanguard total index. I wondering if should invest 100k upfront to get the compounding interest going ? Any suggestion You know how basic, uneducated people love receiving tax refunds in April, even though it's financially inferior to owing taxes? Getting a ...
by JustinR
Mon Aug 26, 2019 6:37 pm
Forum: Investing - Theory, News & General
Topic: "Steelmanning" the case for owning individual stocks
Replies: 137
Views: 15900

Re: "Steelmanning" the case for owning individual stocks

Man, investors really can't just sit there and do nothing, can they?
by JustinR
Sun Aug 25, 2019 6:50 am
Forum: Personal Investments
Topic: Lump sum multiple bonuses next few months?
Replies: 22
Views: 1703

Re: Lump sum multiple bonuses next few months?

xraygoggles wrote:
Sat Aug 24, 2019 10:55 pm
If I stuck with my AA, I would basically be putting all of it into VTSAX every month in a taxable account. Is this really a smart decision?
Doing anything other than that is called market timing, which is not recommended around here.
by JustinR
Fri Aug 23, 2019 2:50 pm
Forum: Personal Investments
Topic: Best funds for dividends
Replies: 24
Views: 2597

Re: Best funds for dividends

Thanks all for the responses! So essentially if I keep my money in VOO, I can receive the roughly 2% annual dividend. If I want to pull 4%, then I would need to sell some shares to get the equivalent, correct? Side note: Are their higher taxes on selling a share compared to dividends? Thanks again!...
by JustinR
Sat Aug 17, 2019 1:01 am
Forum: Investing - Theory, News & General
Topic: The Final, Definitive Thread on Brokerage Transfer Bonuses
Replies: 1970
Views: 327839

Re: The Final, Definitive Thread on Brokerage Transfer Bonuses

Are you sure it's the same bonus? Same offer code and all? Hey Earl, How churnable is Merrill in your experience? I finished a Merrill bonus and am now transferring the funds out to Etrade. Can I come back to Merrill right away when ETrade is done in 6 months? Or can you do them right after another...
by JustinR
Fri Aug 16, 2019 2:47 am
Forum: Investing - Theory, News & General
Topic: The Final, Definitive Thread on Brokerage Transfer Bonuses
Replies: 1970
Views: 327839

Re: The Final, Definitive Thread on Brokerage Transfer Bonuses

Are you sure it's the same bonus? Same offer code and all? Hey Earl, How churnable is Merrill in your experience? I finished a Merrill bonus and am now transferring the funds out to Etrade. Can I come back to Merrill right away when ETrade is done in 6 months? Or can you do them right after another...
by JustinR
Sat Aug 10, 2019 9:14 pm
Forum: Investing - Theory, News & General
Topic: Help me design a 401k fund menu
Replies: 36
Views: 2266

Re: Help me design a 401k fund menu

If I were doing it: Target date funds Total stock market Total international Total bond market End of list Reasoning: behavioral economics research on folks making poor decisions in the face of too much choice. That upsets some as paternalistic...oh well. This. 1. Total Stock Market 2. Total Intern...
by JustinR
Sat Aug 10, 2019 6:42 pm
Forum: Investing - Theory, News & General
Topic: The fallacy of Dollar Cost Averaging
Replies: 101
Views: 9114

Re: The fallacy of Dollar Cost Averaging

The advantage of DCA over lump sum is not a mathematical theorem. It is just a tendency, historical observation, and recommendation. A theorem is true now, true in the past, and true forever. A mathematical rigor does not apply to investment except taxes as long as they do not change. Any fancy arg...
by JustinR
Sat Aug 10, 2019 7:59 am
Forum: Investing - Theory, News & General
Topic: The fallacy of Dollar Cost Averaging
Replies: 101
Views: 9114

Re: The fallacy of Dollar Cost Averaging

The advantage of DCA over lump sum is not a mathematical theorem. It is just a tendency, historical observation, and recommendation. A theorem is true now, true in the past, and true forever. A mathematical rigor does not apply to investment except taxes as long as they do not change. Any fancy arg...
by JustinR
Sat Aug 10, 2019 6:47 am
Forum: Investing - Theory, News & General
Topic: The fallacy of Dollar Cost Averaging
Replies: 101
Views: 9114

Re: The fallacy of Dollar Cost Averaging

I DCA because I get paid once a month. It has nothing to do with strategy or psychology. It’s not a fallacy. Everyone DCA by default unless you have a lump sum that was an unanticipated bonus or your making a rebalancing decision. If you hold back and only invest yearly, that is simply DCA yearly i...
by JustinR
Thu Aug 08, 2019 10:13 pm
Forum: Investing - Theory, News & General
Topic: Is this right? "if you live off dividends, a crash in stocks prices doesn't matter"
Replies: 247
Views: 19181

Re: Is this right? "if you live off dividends, a crash in stocks prices doesn't matter"

Here's the best way that I can think of to describe why dividends are not 'free money'. Imagine that you are the sole owner of a business that has $10,000 in its checking account. You transfer that $10,000 into your personal checking account. Has your net worth increased at all? No, because you own...
by JustinR
Thu Aug 08, 2019 2:21 pm
Forum: Investing - Theory, News & General
Topic: Is this right? "if you live off dividends, a crash in stocks prices doesn't matter"
Replies: 247
Views: 19181

Re: Is this right? "if you live off dividends, a crash in stocks prices doesn't matter"

I believe the mathematics in this discussion center around the NAV being reduced when the dividend is distributed? It amazes me the market is able to do that so accurately without a central pricing authority of some sort. DBR gave me a link a while back in another thread that explains this in more ...
by JustinR
Thu Aug 08, 2019 6:14 am
Forum: Investing - Theory, News & General
Topic: Is this right? "if you live off dividends, a crash in stocks prices doesn't matter"
Replies: 247
Views: 19181

Re: Is this right? "if you live off dividends, a crash in stocks prices doesn't matter"

Is it still not clear that receiving a dividend is exactly the same thing as selling shares? Let me make it clear then in underlined/bolded font: Receiving a dividend is exactly the same as selling shares. Repeating things doesn’t make them any smarter or more useful. This is not useful. Nah, hard ...
by JustinR
Wed Aug 07, 2019 11:02 pm
Forum: Investing - Theory, News & General
Topic: Is this right? "if you live off dividends, a crash in stocks prices doesn't matter"
Replies: 247
Views: 19181

Re: Is this right? "if you live off dividends, a crash in stocks prices doesn't matter"

My assumption is that the goal of a dividend portfolio is to avoid having to sell shares. That is not the same thing as “to minimize worst case risk, not to maximize return.” If we have different views about the intended goal of this type of portfolio, then we are going to be arguing in circles. To...
by JustinR
Tue Aug 06, 2019 1:12 pm
Forum: Investing - Theory, News & General
Topic: Is this right? "if you live off dividends, a crash in stocks prices doesn't matter"
Replies: 247
Views: 19181

Re: Is this right? "if you live off dividends, a crash in stocks prices doesn't matter"

Yes I know a simple 60/40 portfolio will more than likely work. It's actually what I do. I'm just curious about the dividend approach, what are the specific pros can cons. There are no pros to dividends. Only cons. Dividends are widely misunderstood by basic investors. I'm gonna simplify this as mu...
by JustinR
Sun Aug 04, 2019 8:55 pm
Forum: Investing - Theory, News & General
Topic: Roth > Taxable > tIRA
Replies: 200
Views: 15416

Re: Roth > Taxable > tIRA

No - I am good and understand most of that description but what happens with SS in the total? Even with one spouse at say $30K and the other just getting spousal SS that number is then at $45K. And I do not understand how a $27K Roth conversion will help too much with a 'significant' TIRA. Would no...
by JustinR
Sun Aug 04, 2019 6:49 am
Forum: Investing - Theory, News & General
Topic: Roth > Taxable > tIRA
Replies: 200
Views: 15416

Re: Roth > Taxable > tIRA

1. If a lot of your retirement money is in a tIRA, you do not have as much as you think. If your tIRA balance is $1 million, you are not a millionaire. It's only equivalent to about $850K in a Roth. The rest belongs to the government. Maybe use the de-rated number when calculating your net worth fo...
by JustinR
Sun Aug 04, 2019 5:36 am
Forum: Investing - Theory, News & General
Topic: Roth > Taxable > tIRA
Replies: 200
Views: 15416

Re: Roth > Taxable > tIRA

1. If a lot of your retirement money is in a tIRA, you do not have as much as you think. If your tIRA balance is $1 million, you are not a millionaire. It's only equivalent to about $850K in a Roth. The rest belongs to the government. Maybe use the de-rated number when calculating your net worth fo...
by JustinR
Wed Jul 31, 2019 2:54 pm
Forum: Investing - Theory, News & General
Topic: Merrill Edge converted my fractional ETFs to whole numbers. Are these new cost basis valid?
Replies: 2
Views: 436

Re: Merrill Edge converted my fractional ETFs to whole numbers. Are these new cost basis valid?

IMO the new cost basis looks reasonable. The fractional shares and basis $ were aggregated into a lot of one share. The total cost basis before and after is the same. I personally would be comfortable with it as is. My guess is that the IRS would find it reasonable as well. Thanks for the input! Th...
by JustinR
Wed Jul 31, 2019 3:10 am
Forum: Investing - Theory, News & General
Topic: Merrill Edge converted my fractional ETFs to whole numbers. Are these new cost basis valid?
Replies: 2
Views: 436

Merrill Edge converted my fractional ETFs to whole numbers. Are these new cost basis valid?

When you convert MFs to ETFs at Vanguard, you get a bunch of fractional lots. So far I've been able to transfer them to other brokerages intact. However, when I transferred them to Merrill Edge, they converted them to whole numbers by combining the fractional parts of several lots. Here's an example...
by JustinR
Fri Jul 26, 2019 12:57 am
Forum: Investing - Theory, News & General
Topic: Roth > Taxable > tIRA
Replies: 200
Views: 15416

Re: Roth > Taxable > tIRA

So if you could move all your 401k funds into your taxable account right now, tax free, you would? Yes! I can't relate to that at all. Understandable if your marginal rate on ordinary income is 0%. Otherwise, it takes many years avoiding 15% tax on annual stock yield to overcome the higher tax rate...
by JustinR
Thu Jul 25, 2019 10:59 pm
Forum: Investing - Theory, News & General
Topic: Roth > Taxable > tIRA
Replies: 200
Views: 15416

Re: Roth > Taxable > tIRA

If your marginal rate is 0%, then your capital gains/qualified dividend rate is 0%. In almost every instance, regardless of tax bracket, capital gains and qualified dividends are taxed less than marginal income. 0% marginal is the only instance where they are equal. For traditional, your marginal t...
by JustinR
Wed Jul 24, 2019 9:19 pm
Forum: Investing - Theory, News & General
Topic: Roth > Taxable > tIRA
Replies: 200
Views: 15416

Re: Roth > Taxable > tIRA

Which taxable can be too, except that traditional grows tax free as well. Meaning traditional is better in almost every way than taxable. Person A has $100K in traditional pre-tax. Person B has $100K in taxable. Both want to withdraw the whole amount in one year, paying tax on that as the only inco...
by JustinR
Wed Jul 24, 2019 5:02 pm
Forum: Investing - Theory, News & General
Topic: Roth > Taxable > tIRA
Replies: 200
Views: 15416

Re: Roth > Taxable > tIRA

Which can be 0%. Which taxable can be too, except that traditional grows tax free as well. Meaning traditional is better in almost every way than taxable. If your marginal rate is 0%, then your capital gains/qualified dividend rate is 0%. In almost every instance, regardless of tax bracket, capital...
by JustinR
Wed Jul 24, 2019 12:28 pm
Forum: Investing - Theory, News & General
Topic: Roth > Taxable > tIRA
Replies: 200
Views: 15416

Re: Roth > Taxable > tIRA

I would rather *have* $1 in Roth, then taxable, then Traditional. I would rather *put* $1 in Traditional, then Roth, then taxable. This is because $1 in Traditional gives me an additional deduction of about $.28. This, except have in Roth -> traditional -> taxable. Taxable should be last because, w...
by JustinR
Tue Jul 23, 2019 6:49 pm
Forum: Investing - Theory, News & General
Topic: Roth > Taxable > tIRA
Replies: 200
Views: 15416

Re: Roth > Taxable > tIRA

I would rather *have* $1 in Roth, then taxable, then Traditional. I would rather *put* $1 in Traditional, then Roth, then taxable. This is because $1 in Traditional gives me an additional deduction of about $.28. This, except have in Roth -> traditional -> taxable. Taxable should be last because, w...
by JustinR
Sat Jul 20, 2019 8:54 am
Forum: Investing - Theory, News & General
Topic: Merrill Edge converted my ETF fractional lots to whole numbers. Anyone know the math?
Replies: 8
Views: 876

Re: Merrill Edge converted my ETF fractional lots to whole numbers. Anyone know the math?

Yes, Merrill did the same to me for some mutual funds I had transferred from Ameritrade. In comparison, Ameritrade has a great "Gainskeeper" interface that allowed me to view all share lots accurately and an easy way to request corrections. I called them four different times to get different reps t...
by JustinR
Fri Jul 19, 2019 2:58 pm
Forum: Investing - Theory, News & General
Topic: Merrill Edge converted my ETF fractional lots to whole numbers. Anyone know the math?
Replies: 8
Views: 876

Re: Merrill Edge converted my ETF fractional lots to whole numbers. Anyone know the math?

I transferred some lots from another brokerage to Merrill Edge. They converted my fractional lots to all whole numbers, creating new tiny lots with new prices. Before (fake example, fake math): 2.145 @ $70 1.178 @ $60 1.677 @ $30 (5 shares total) After: 2 @ $70 1 @ $60 1 @ $58.64 1 @ $30 Like that,...
by JustinR
Fri Jul 19, 2019 2:56 pm
Forum: Investing - Theory, News & General
Topic: Merrill Edge converted my ETF fractional lots to whole numbers. Anyone know the math?
Replies: 8
Views: 876

Re: Merrill Edge converted my ETF fractional lots to whole numbers. Anyone know the math?

I would think that the cost basis of the share that was created to account for the fractional parts has to make the TOTAL cost basis the same, BEFORE and AFTER. In your fake example, total cost basis BEFORE is 2.145x70 + 1.178x60 + 1.677x30 = 271.14 For AFTER, cost basis of WHOLE shares is 2x70 + 1...
by JustinR
Fri Jul 19, 2019 2:21 am
Forum: Investing - Theory, News & General
Topic: Merrill Edge converted my ETF fractional lots to whole numbers. Anyone know the math?
Replies: 8
Views: 876

Merrill Edge converted my ETF fractional lots to whole numbers. Anyone know the math?

I transferred some lots from another brokerage to Merrill Edge. They converted my fractional lots to all whole numbers, creating new tiny lots with new prices. Before (fake example, fake math just to demonstrate what happened. The math is not accurate): 2.145 @ $70 1.178 @ $60 1.677 @ $30 (5 shares ...
by JustinR
Tue Jul 16, 2019 6:33 pm
Forum: Investing - Theory, News & General
Topic: Full list of Vanguard ETFs that are cheaper than their index funds?
Replies: 49
Views: 5511

Re: Full list of Vanguard ETFs that are cheaper than their index funds?

Can partial etf lots be sold easily? How does VG do in terms of handling tax lots for MF conversions to ETF? I have large taxable holdings in admiral funds. If I lose tax lot accounting or it gets messy, the conversion will not be worth it. Each MF lot is converted individually. So you'll have the ...
by JustinR
Tue Jul 16, 2019 6:01 pm
Forum: Investing - Theory, News & General
Topic: Full list of Vanguard ETFs that are cheaper than their index funds?
Replies: 49
Views: 5511

Re: Full list of Vanguard ETFs that are cheaper than their index funds?

How does VG do in terms of handling tax lots for MF conversions to ETF? I have large taxable holdings in admiral funds. If I lose tax lot accounting or it gets messy, the conversion will not be worth it. Each MF lot is converted individually. So you'll have the same number of lots (the ETF lots wil...
by JustinR
Tue Jul 16, 2019 5:43 pm
Forum: Investing - Theory, News & General
Topic: Full list of Vanguard ETFs that are cheaper than their index funds?
Replies: 49
Views: 5511

Re: Full list of Vanguard ETFs that are cheaper than their index funds?

My apologies, but I really like fixed-width fonts... and I couldn't stop myself from adding actual basis point (BP) differences: Total Bond Market (30% 1.5) BND 0.035%/ VBTLX 0.05% Developed Markets (29% 2) - VEA 0.05% / VTMGX 0.07% Dividend Appreciation(25% 2) - VIG 0.06% / VDADX 0.08% High Divide...
by JustinR
Tue Jul 16, 2019 5:28 am
Forum: Investing - Theory, News & General
Topic: Full list of Vanguard ETFs that are cheaper than their index funds?
Replies: 49
Views: 5511

Re: Full list of Vanguard ETFs that are cheaper than their index funds?

JustinR, I think this pdf document provides the information you want: Find out which Vanguard index mutual funds can be converted tax-free to Vanguard ETFs . It lists the 18 traditional funds for which the associated ETFs are cheaper, as well as the 29 with equal expense ratios. Thank you! The only...
by JustinR
Mon Jul 15, 2019 3:55 pm
Forum: Investing - Theory, News & General
Topic: Full list of Vanguard ETFs that are cheaper than their index funds?
Replies: 49
Views: 5511

Full list of Vanguard ETFs that are cheaper than their index funds?

Here's the full list sorted by basis points saved. For every $10,000 invested, you save that number in dollars per year: FTSE All-World ex-US Small-Cap (4) - VSS 0.12% / VFSAX 0.16% Total International Stock (2) - VXUS 0.09% / VTIAX 0.11% FTSE All-World ex-US (2) - VEU 0.09% / VFWAX 0.11% Emerging M...