Search found 484 matches

by JustinR
Fri Apr 20, 2018 12:35 pm
Forum: Investing - Theory, News & General
Topic: Bloomberg article on lump sum vs dollar cost averaging
Replies: 33
Views: 2942

Re: Bloomberg article on lump sum vs dollar cost averaging

Most of us are sort of in the middle. As soon as I get paid I make a lump sum deposit into investment accounts of every nickel I think I can afford to invest at that time. But that happens 26 times a year. If I were to wait until I had accumulated a year's worth of wage-derived capital earmarked fo...
by JustinR
Thu Apr 19, 2018 10:20 pm
Forum: Investing - Theory, News & General
Topic: Bloomberg article on lump sum vs dollar cost averaging
Replies: 33
Views: 2942

Re: Bloomberg article on lump sum vs dollar cost averaging

Here he is talking not about market timing, which is trying to predict the market, but about the need for "nervous" investors to stay within their risk tolerance levels by reducing equities. I'm ok with nervous investors dialing back their equities to stay within their risk tolerance -- that is als...
by JustinR
Thu Apr 19, 2018 2:54 pm
Forum: Investing - Theory, News & General
Topic: Bloomberg article on lump sum vs dollar cost averaging
Replies: 33
Views: 2942

Re: Bloomberg article on lump sum vs dollar cost averaging

So this terrible article is just saying "the market seems high right now so it'll probably go down. Therefore DCA is a good idea." Correct? I understand that in general lump sum outperforms DCA perhaps 2/3'rds of the time. I do think there might be a reduction in that advantage for those start their...
by JustinR
Wed Apr 11, 2018 6:49 pm
Forum: Investing - Theory, News & General
Topic: Is rebalancing with new money only superior?
Replies: 17
Views: 881

Re: Is rebalancing with new money only superior?

If all things are equal, meaning you are still putting in new money at your AA, and are not dealing with tax consequences from selling, then it shouldn't matter. Say 50/50 AA with $100 to start means you have $50 bonds $50 in stocks. If stocks drop 20% (so you have $50 in bonds and $40 in stocks) a...
by JustinR
Wed Apr 11, 2018 6:12 pm
Forum: Investing - Theory, News & General
Topic: Is rebalancing with new money only superior?
Replies: 17
Views: 881

Re: Is rebalancing with new money only superior?

If you have the option of only rebalancing with new money instead of exchanging current stock, is that a mathematically superior strategy, or is it the same? Have there been any studies or math done on this? If there are no transaction fees or taxes or other frictional costs and the rebalancing wer...
by JustinR
Wed Apr 11, 2018 4:49 pm
Forum: Investing - Theory, News & General
Topic: Is rebalancing with new money only superior?
Replies: 17
Views: 881

Re: Is rebalancing with new money only superior?

If you have the option of only rebalancing with new money instead of exchanging current stock, is that a mathematically superior strategy, or is it the same? Have there been any studies or math done on this? I don't see how any studies could be helpful. What would be the positive control? The negat...
by JustinR
Wed Apr 11, 2018 4:25 pm
Forum: Investing - Theory, News & General
Topic: Is rebalancing with new money only superior?
Replies: 17
Views: 881

Is rebalancing with new money only superior?

For simplicity let's only consider retirement accounts where you can rebalance freely. If you have the option of only rebalancing with new money instead of exchanging current stock, is that a mathematically superior strategy, or is it the same? The strategy I'm proposing is basically "never sell any...
by JustinR
Fri Apr 06, 2018 2:56 am
Forum: Investing - Theory, News & General
Topic: The Final, Definitive Thread on Brokerage Transfer Bonuses
Replies: 930
Views: 160507

Re: The Final, Definitive Thread on Brokerage Transfer Bonuses

1) Has anyone moved their funds back to Vanguard? Has Vanguard ever offered to pay transfer fees? 2)Which brokerages typically offer to refund your transfer fees when you move to them? 3) Does the "free conversion from index fund to ETF" offer only exist at Vanguard? So I should do all conversions a...
by JustinR
Wed Apr 04, 2018 4:58 pm
Forum: Investing - Help with Personal Investments
Topic: Changing cost basis method from Average to Actual Cost
Replies: 18
Views: 1237

Re: Changing cost basis method from Average to Actual Cost

If I do have all records before 2012, wand know the exact cost basis for every share I own, will Vanguard accept what I tell them? Vanguard doesn't care and will do nothing if you tell because they are not required to do anything. Thus you wouldn't tell them anyways. You can always specifically ide...
by JustinR
Wed Apr 04, 2018 4:34 pm
Forum: Investing - Help with Personal Investments
Topic: Changing cost basis method from Average to Actual Cost
Replies: 18
Views: 1237

Re: Changing cost basis method from Average to Actual Cost

If I do have all records before 2012, and know the exact cost basis for every share I own, will Vanguard accept what I tell them?
by JustinR
Tue Apr 03, 2018 6:33 pm
Forum: Investing - Theory, News & General
Topic: The "American companies I invest in already have international exposure" argument --- valid or not?
Replies: 139
Views: 10039

Re: The "American companies I invest in already have international exposure" argument --- valid or not?

I drank the international cool aid a while ago but it really hasn't seemed to have helped much. It did help today. Seems like the US and international markets are pretty highly correlated. +1 This says a lot. I think that is what kind of happened to me but in the reverse. When I first started visit...
by JustinR
Sun Apr 01, 2018 9:11 pm
Forum: Investing - Theory, News & General
Topic: The Final, Definitive Thread on Brokerage Transfer Bonuses
Replies: 930
Views: 160507

Re: The Final, Definitive Thread on Brokerage Transfer Bonuses

Which brokerages allow you to have multiple accounts at the same time that are completely separate, allowing you to do multiple bonuses simultaneously or consecutively? Example 1: Year 1, I transfer Vanguard to new accounts at Schwab and TDA for bonuses. Then in Year 2 I transfer the Schwab to a new...
by JustinR
Sun Apr 01, 2018 6:06 am
Forum: Investing - Help with Personal Investments
Topic: Rebalancing is profitable?
Replies: 29
Views: 2972

Re: Rebalancing is profitable?

Hi, One of the things that I read regularly on this forum is: "rebalancing is good, because you sell high buy low (stocks go up you rebalance sell stocks buy bonds and vise versa)". Or, like this: "having bonds is good, because you rebalance to stocks (buy cheap) in case of a crash". Is that really...
by JustinR
Sat Mar 31, 2018 10:18 pm
Forum: Investing - Theory, News & General
Topic: Is backtesting worthless? Are there ANY insights you can get from it?
Replies: 69
Views: 4390

Re: Is backtesting worthless? Are there ANY insights you can get from it?

It's not worthless unless you make it worthless. That is, don't try to find the optimal slice-and-dice portfolio with 25 asset classes by backtesting it, because you're never going to come close to replicating those results. What is okay is to look back and examine how realistic portfolios behaved....
by JustinR
Fri Mar 30, 2018 6:40 pm
Forum: Investing - Theory, News & General
Topic: The "American companies I invest in already have international exposure" argument --- valid or not?
Replies: 139
Views: 10039

The "American companies I invest in already have international exposure" argument --- valid or not?

People like JL Collins argue that they don't need an international allocation because the companies in US total stock market already do business internationally. Is this actually a valid argument? I feel like this is different from investing in non-American companies. Does this line of thinking have...
by JustinR
Fri Mar 30, 2018 4:04 am
Forum: Investing - Theory, News & General
Topic: Is backtesting worthless? Are there ANY insights you can get from it?
Replies: 69
Views: 4390

Is backtesting worthless? Are there ANY insights you can get from it?

Whenever backtesting is brought up people remind us that the past performance isn't indicative of future results. Doesn't that mean that backtesting is worthless, then? So what's the purpose of backtesting? Does it have any value? What are some actual insights you can get from backtesting an allocat...
by JustinR
Thu Mar 29, 2018 5:15 pm
Forum: Investing - Theory, News & General
Topic: Is 100% VTSAX (+ bonds) the best portfolio?
Replies: 14
Views: 1541

Is 100% VTSAX (+ bonds) the best portfolio?

I'm back testing using portfolio visualizer and VTSAX with bonds (such as 80% VTSAX, 20% total bond) beats anything I throw at it. Is a 2-fund portfolio actually the best thing to do? Using tickers: https://www.portfoliovisualizer.com/backtest-portfolio Using asset classes: https://www.portfoliovisu...
by JustinR
Wed Mar 28, 2018 11:32 pm
Forum: Investing - Theory, News & General
Topic: What's your U.S. : International ratio?
Replies: 190
Views: 34817

Re: What's your U.S. : International ratio?

50:50 (for simplicity, trying to closely approximate world cap weighting with an easy-to-remember ratio, even though the true weight should really be 52:48 ). I hold the world market AA. It changes daily, of course. Today: US 52.4% , non-US 47.6% Which fund are you tracking to get the current weigh...
by JustinR
Wed Mar 28, 2018 6:47 pm
Forum: Investing - Theory, News & General
Topic: What's your U.S. : International ratio?
Replies: 190
Views: 34817

Re: What's your U.S. : International ratio?

50:50 (for simplicity, trying to closely approximate world cap weighting with an easy-to-remember ratio, even though the true weight should really be 52:48 ). I hold the world market AA. It changes daily, of course. Today: US 52.4% , non-US 47.6% Which fund are you tracking to get the current weigh...
by JustinR
Tue Mar 20, 2018 5:43 pm
Forum: Investing - Theory, News & General
Topic: The Final, Definitive Thread on Brokerage Transfer Bonuses
Replies: 930
Views: 160507

Re: The Final, Definitive Thread on Brokerage Transfer Bonuses

Is it possible to only convert some shares of a fund to ETF at Vanguard? That way I can have ETFs to move around for these bonuses, but can still invest new money using index funds. Not sure I understand the question. Do you mean "can you convert part of your mutual fund holdings" or "is Vanguard t...
by JustinR
Tue Mar 20, 2018 3:37 pm
Forum: Investing - Theory, News & General
Topic: The Final, Definitive Thread on Brokerage Transfer Bonuses
Replies: 930
Views: 160507

Re: The Final, Definitive Thread on Brokerage Transfer Bonuses

Is it possible to only convert some shares of a fund to ETF at Vanguard?

That way I can have ETFs to move around for these bonuses, but can still invest new money using index funds.
by JustinR
Mon Mar 19, 2018 11:39 pm
Forum: Investing - Theory, News & General
Topic: Vanguard Buy with ACH transfer timing question
Replies: 3
Views: 535

Vanguard Buy with ACH transfer timing question

Let's say you put in a $1000 purchase on Sunday night via bank transfer. The money won't have transferred by end of day Monday. So what happens? Does Vanguard buy the fund for you at the Monday NAV with their funds, while they're waiting for your funds to arrive? Or does it wait for your funds to ar...
by JustinR
Tue Mar 13, 2018 9:50 pm
Forum: Investing - Theory, News & General
Topic: Are Health Savings Accounts (HSA) that require a minimum balance before investing worth it?
Replies: 39
Views: 3197

Re: Are Health Savings Accounts (HSA) that require a minimum balance before investing worth it?

There's nothing better than Lively. $2.50 fee per month to invest. That's it. No other fees, minimums, limitations, or catches. Uses TD Ameritrade so you can invest in anything you want, including their commission free ETFs. Not a limited selection like some HSAs. healthsavings.com provides 100% of ...
by JustinR
Thu Mar 01, 2018 4:45 am
Forum: Investing - Theory, News & General
Topic: What if you only live off dividends?
Replies: 316
Views: 33869

Re: What if you only live off dividends?

my larger point was that tying SWR to dividend payouts is a bit strange. I see no obvious link between the two. The link is that if you want to live off shares without "spending your capital", the equivalent of living only on rents from properties, without selling properties, or the produce of your...
by JustinR
Tue Feb 27, 2018 10:47 pm
Forum: Investing - Theory, News & General
Topic: Why have Emergency Funds?
Replies: 54
Views: 4103

Re: Why have Emergency Funds?

I’m having trouble understanding the common wisdom of having a bunch of cash for Emergencies. I have a majority of my retirement in taxable equities from an inheritance. Why park $20,000+ in a low yield MM account or similar versus leave it in the market? If needed, cash can be generated from a qui...
by JustinR
Mon Feb 26, 2018 11:51 pm
Forum: Investing - Theory, News & General
Topic: Reinvest dividends or sweep to settlement account
Replies: 38
Views: 4660

Re: Reinvest dividends or sweep to settlement account

Don't reinvest. Use it to real rebalance.
by JustinR
Mon Feb 26, 2018 8:55 pm
Forum: Investing - Theory, News & General
Topic: Personal rules for buying in a down market?
Replies: 55
Views: 3997

Re: Personal rules for buying in a down market?

Toons wrote:
Mon Feb 26, 2018 8:38 am
Just buy consistently throughout your working career via 401k plan.
Ignore the market .
Time ,Compounding,
Will take care of the rest. :happy
That works for 401k obviously since it's automatic. This thread is about manual buys elsewhere like a taxable account.
by JustinR
Mon Feb 26, 2018 7:18 pm
Forum: Investing - Theory, News & General
Topic: Personal rules for buying in a down market?
Replies: 55
Views: 3997

Re: Personal rules for buying in a down market?

livesoft wrote:
Mon Feb 26, 2018 5:23 pm
unclescrooge wrote:
Mon Feb 26, 2018 3:46 pm
How much does the market need to go up before you rebalance out of equities?
That's a trade secret which I am not going to divulge.

OK, I will divulge: The market doesn't have to go up at all. It could go down and I would still have to rebalance out of equities.
Wat
by JustinR
Mon Feb 26, 2018 6:33 am
Forum: Investing - Theory, News & General
Topic: Personal rules for buying in a down market?
Replies: 55
Views: 3997

Personal rules for buying in a down market?

It's February 6 and the market dropped drastically. Now that equities are cheaper, you want to jump on the opportunity to buy low. But you don't want to be rash and reactionary. Reacting to really bad days sounds too close to market timing.. yuck. Buying now would mean you could lock in cheap stocks...
by JustinR
Mon Feb 26, 2018 12:01 am
Forum: Investing - Theory, News & General
Topic: Total Bond Market Index Fund vs. CDs?
Replies: 33
Views: 4669

Re: Total Bond Market Index Fund vs. CDs?

CDs are also taxed as normal income, reducing their return even further correct? While bonds you can keep in a tax-advantaged account.
by JustinR
Fri Feb 23, 2018 4:01 pm
Forum: Investing - Theory, News & General
Topic: What if you only live off dividends?
Replies: 316
Views: 33869

Re: What if you only live off dividends?

If my portfolio can give off 100,000 a year in dividends, I don't see the point in selling off my principal. If you have a sizeable portfolio, living off dividends and muni bond interest in retirement seems to be a far better idea then selling off principal. I want to leave money when I die. If you...
by JustinR
Fri Feb 23, 2018 3:42 am
Forum: Investing - Theory, News & General
Topic: What if you only live off dividends?
Replies: 316
Views: 33869

Re: What if you only live off dividends?

If my portfolio can give off 100,000 a year in dividends, I don't see the point in selling off my principal. If you have a sizeable portfolio, living off dividends and muni bond interest in retirement seems to be a far better idea then selling off principal. I want to leave money when I die. Sellin...
by JustinR
Wed Feb 21, 2018 5:28 pm
Forum: Investing - Theory, News & General
Topic: Why investors shouldn’t panic over falling bond prices
Replies: 36
Views: 6585

Re: Why investors shouldn’t panic over falling bond prices

So the 2.90% SEC yield on VBTLX isn't that bad, right? Better than CDs right now. Thanks for all your help understanding this! Absolutely not. Go have a look at Vanguard's summary of the funds performance which you'll find here: https://investor.vanguard.com/mutual-funds/list#/mutual-funds/asset-cl...
by JustinR
Wed Feb 21, 2018 6:20 am
Forum: Investing - Theory, News & General
Topic: Why investors shouldn’t panic over falling bond prices
Replies: 36
Views: 6585

Re: Why investors shouldn’t panic over falling bond prices

Should I be comparing the APR of a CD to the equivalent average annual returns on the bonds (in this case 2.02% for 1yr)? Use SEC yield for funds. The other numbers are backward looking, like it would be to say "last year I made 2.5% in a 1 year CD at X Bank" -- well, that was then and I need to lo...
by JustinR
Wed Feb 21, 2018 12:14 am
Forum: Investing - Theory, News & General
Topic: Why investors shouldn’t panic over falling bond prices
Replies: 36
Views: 6585

Re: Why investors shouldn’t panic over falling bond prices

What metrics should we look at to see if we should or shouldn't buy bonds? The only one should be -- as always -- do you have an objectively better investment with the same qualities that you can use? Typically, this involves something not available to the market at large, or the market will have p...
by JustinR
Wed Feb 21, 2018 12:11 am
Forum: Personal Consumer Issues
Topic: Mental Accounting -- How to solve problem
Replies: 32
Views: 3119

Re: Mental Accounting -- How to solve problem

Money is fungible. $1 in this account is the same as $1 in that account. Mental accounting is just that... it all takes place in your head. It's not reflective of reality, which is that your whole portfolio is a single bucket, not several. As for your savings rate every month, you should still do it...
by JustinR
Tue Feb 20, 2018 11:46 pm
Forum: Investing - Theory, News & General
Topic: Why investors shouldn’t panic over falling bond prices
Replies: 36
Views: 6585

Re: Why investors shouldn’t panic over falling bond prices

So you guys are saying now would not be a good time to buy bonds to rebalance? What should we do if our AA is off-balance? Leave it for now?

What metrics should we look at to see if we should or shouldn't buy bonds?
by JustinR
Tue Feb 20, 2018 1:08 pm
Forum: Investing - Theory, News & General
Topic: What if you only live off dividends?
Replies: 316
Views: 33869

Re: What if you only live off dividends?

Living off of dividends is exactly the same as selling off your stocks though.

So you could rephrase your question as, "What if you only live off selling off your stocks?"
by JustinR
Sat Feb 17, 2018 6:30 am
Forum: Investing - Theory, News & General
Topic: Can someone help me explain to my wife...?
Replies: 81
Views: 9932

Re: Can someone help me explain to my wife...?

Agree to do what she says, but with the stipulation that you'll file for divorce if backtesting proves she was wrong.
by JustinR
Tue Feb 13, 2018 4:50 am
Forum: Personal Finance (Not Investing)
Topic: Co-investment with parents and sibling jealosy [Home construction]
Replies: 22
Views: 2330

Re: Co-investment with parents and sibling jealosy

Sounds great if you want your wife's siblings to resent you guys for the rest of your life. I wouldn't mix money and business with family.
by JustinR
Fri Feb 09, 2018 3:25 am
Forum: Investing - Theory, News & General
Topic: Does this strategy make sense in a falling market?
Replies: 19
Views: 2291

Re: Does this strategy make sense in a falling market?

Incognito2u wrote:
Thu Feb 08, 2018 8:45 pm
Also, no market timing per se is involved
In what universe is this not considered market timing?
by JustinR
Sat Feb 03, 2018 10:07 pm
Forum: Investing - Help with Personal Investments
Topic: Mutual Fund to ETF conversion cost basis math help
Replies: 13
Views: 1069

Re: Mutual Fund to ETF conversion cost basis math help

If your mutual fund uses non-covered shares, Vanguard converts it all as one lot, but you can adjust the basis yourself. (This is necessary because Vanguard has average-cost basis for mutual funds, which is not allowed for ETFs. When I did my conversion, I computed the correct basis for my five lot...
by JustinR
Sat Feb 03, 2018 5:00 am
Forum: Investing - Help with Personal Investments
Topic: Mutual Fund to ETF conversion cost basis math help
Replies: 13
Views: 1069

Re: Mutual Fund to ETF conversion cost basis math help

Can someone who has done a mutual fund to etf conversion at Vanguard chime in on what exactly happens? If your mutual fund uses non-covered shares, Vanguard converts it all as one lot, but you can adjust the basis yourself. (This is necessary because Vanguard has average-cost basis for mutual funds...
by JustinR
Fri Feb 02, 2018 4:28 am
Forum: Investing - Help with Personal Investments
Topic: Mutual Fund to ETF conversion cost basis math help
Replies: 13
Views: 1069

Re: Mutual Fund to ETF conversion cost basis math help

Can someone who has done a mutual fund to etf conversion at Vanguard chime in on what exactly happens? If your mutual fund uses non-covered shares, Vanguard converts it all as one lot, but you can adjust the basis yourself. (This is necessary because Vanguard has average-cost basis for mutual funds...
by JustinR
Thu Feb 01, 2018 6:18 am
Forum: Investing - Help with Personal Investments
Topic: Mutual Fund to ETF conversion cost basis math help
Replies: 13
Views: 1069

Re: Mutual Fund to ETF conversion cost basis math help

Can someone who has done a mutual fund to etf conversion at Vanguard chime in on what exactly happens?
by JustinR
Thu Feb 01, 2018 5:03 am
Forum: Investing - Theory, News & General
Topic: The Final, Definitive Thread on Brokerage Transfer Bonuses
Replies: 930
Views: 160507

Re: The Final, Definitive Thread on Brokerage Transfer Bonuses

Thanks. Question about shares (not really related to bonuses). When you sell shares, does the brokerage do anything with the cost basis information and taxes? Or is it 100% on you to calculate cost basis and how much you owe in tax? If the former, then isn't it important to know which shares got tr...
by JustinR
Thu Feb 01, 2018 5:00 am
Forum: Investing - Help with Personal Investments
Topic: Mutual Fund to ETF conversion cost basis math help
Replies: 13
Views: 1069

Re: Mutual Fund to ETF conversion cost basis math help

Example: Say I want to convert VFWAX (Admiral mutual fund) to its ETF equivalent (VEU). VFWAX covered shares: 6.485 $26.18 VFWAX nav: $35.85 VEU nav: $57.68 Please show me the math of exactly what shares I will have after the conversion and their cost basis. Your current cost basis is 6.485 x 26.18...