Bogleheads.org

ljford7

PSDLX tracks a S&P500 index (benchmark).

VTSAX is tracking the total market (benchmark).

Small caps have been on a terror lately and are included in VTSAX, but not PSDLX.

ljford7

Off Topic, but seems like the place to mention it... I was working on some backtesting and needed Leveraged ETF data further than they actually go, so created monthly LETFsim data for QLD, TQQQ, SSO, UPRO, UBT, UST, TMF, and TYD. If it may be of use, you're welcome to it. On Dropbox here: https://w...

ljford7

BTW Uncorrelated I just wanted to say I agree with you here, but I'm not quite sure how best to diversify outside the two-fund original. What do you suggest? No offense, but if you don't already know the answer to that question, then this is 100% the wrong strategy for you. This is an advanced and ...

ljford7

This brings up something I have been thinking about a lot lately. Does anyone know the start date sensitivity of this strategy? I.e. should people DCA into this strategy because the start date sensitivity is so large? From my understanding, with regular index investing, people are better off 2/3 of...

ljford7

I listened to the interview a few days ago and I believe his point was in regards to getting income out of bonds. If you need income, you might want to look at blue chip stocks with high dividends (I think he said IBM was at 6%) because bonds are not going to be providing the income a lot of retiree...

ljford7

Try it for yourself: https://www.portfoliovisualizer.com/backtest-portfolio?s=y&timePeriod=2&startYear=1985&firstMonth=1&endYear=2020&lastMonth=12&calendarAligned=true&includeYTD=true&initialAmount=10000&annualOperation=0&annualAdjustment=0&inflationAdjust...

ljford7

https://www.bogleheads.org/blog/2020/02/07/telling-tales-2019-update/ Scroll down to the bottom and read the blurb on international investing (it is a Telltale chart). Seems like a pretty good case that international returns are tied to the strength (or lack there off) of the dollar and not necessar...

ljford7

Just wanted to chime in and say thank you for this. The blog post has educated me the use of the Telltale chart.

ljford7

As an investor does know this mean that you should add in some additional Large Value to help represent those companies further?

As per the original title and the presented evidence, TSM is a Large Growth Fund and you are under represent the Large Value companies.

ljford7

So when will the Tech disruption end? I would wager that it won't end until some very catastrophic event in the world (like WWIII or on that scale). We are on the verge of a driver less car revolution, an alternative energy revolution, an impact worldwide declining poverty rate, worldwide declining ...

ljford7

Thank you for doing these podcasts. I have listened to everyone of them and I always learn something.

Please continue doing them and helping to educate people like myself.

(BTW I am a little disheartened to see how closed minded some of the Bogleheads community is to Dr. Pfau's ideas.)

ljford7

I only had 10% of my portfolio in SV (10+ years), but I am frankly tired of the under performance and the volatility. What I am going to do is just not rebalance into them anymore when they go down. If they get back to 10% of my portfolio again, then I might get out of them all together or rebalance...

ljford7

I liked the article.

A coin flip can technically have three outcomes: it can land on a head, a tail or on its side.

The market also has three outcomes: it goes up, goes down or stays the same.

In a simplistic view, the market is very much like a coin flip - hence the gist of the article.

ljford7

I do it because I like to to tilt to SCV and REIT.

Some day I might remove the SCV tilt, but plan on always having the REIT exposure.

ljford7

I have scanned all of the responses, looking in vain for a cogent description that I could show my wife of how to define the number that is enough. I felt we had that number (i.e., enough) some years ago. Oh well, foiled again, and I have to fall back on my wife's number: 20% more than we have toda...

ljford7

Why is everyone making this so hard? Calculating future cash flows (or loss of cash) from taxes/retirement/SS/pensions has nothing to do with net worth today. I have no idea what my taxes might be 20 years from now. I have no idea if the pension that is around now will be around 20 years for now. I ...

ljford7

Assets - Liabilities = Net Worth

It is as simple as above.

Another way to look at it is: (House + Investments + Banking Accounts + Vehicles + Stuff in House) - (Loans + Credit Cards) = Net Worth

ljford7

It really depends on what interest rate you get. If it is really low one, then take the loan. We bought a car about 4 years ago and got a 1% loan on it. The interest only adds up to $584 for the loan duration. We could have paid in cash, but for such a low interest rate, we are paying it month to mo...

ljford7

Scroll down midway to see chart Success Rates for different SWRs, by equity share and retirement horizon (1871-2015): https://earlyretirementnow.com/2016/12/07/the-ultimate-guide-to-safe-withdrawal-rates-part-1-intro/ Vanguard baked the data into their nest egg calculator: https://retirementplans.v...

ljford7

I am so bewildered by this negativity, and clearly you are in the majority here and I am in the minority. But I am still bewildered. While clearly any job will involve some amount of compromise, I know a lot of people, including me, my DW, and all my siblings, who have jobs that they enjoy and look...

ljford7

Another thing to think about with the new kid is if you need to use daycare. In my area, daycare costs $30,000 per year for two kids full time (unfortunately all of the places are consistent in costs). This is a huge kick in the pants to savings/debt repayment, but is something that you need to acco...

ljford7

Proposal 7 is a horrible proposal for a company like Vanguard. It is way to broad and comes with to many ramifications regarding interpretation. If they rewrote it to contain specific companies/countries, then it could, possibly, gain some traction. As it is written now, it seems like a political ag...

ljford7

No way!

How soon everyone forgets what happened during the great recession.

ljford7

I think you have unrealistic expectations for him. At the end of the day he is only human.

Write a list of every successful business person you know of and you can find fault with every one of them.

ljford7

Not everyone "needs" an emergency fund. If you have access to sizable credit accounts and/or easily accessible taxable accounts, the need to keep a bunch of cash on hand is minimized.

Like most personal finance topics, it depends on your situation, comfort level and net worth.

ljford7

I am not worried about it not being there when I retire. It is one of the biggest (if not the biggest) entitlement program the federal government has. People really like and and it is political suicide for anyone to suggest cutting benefits. It will get a bailout just like the banks/auto manufacture...

ljford7

Do not do this without further educating yourself (see link below).

You will trigger a taxable event at your marginal tax rate and will potentially end up owing a lot of taxes (depends on much your Traditional IRA/Rollover 401ks have in them).

https://www.bogleheads.org/wiki/Backdoor_Roth_IRA

ljford7

KlangFool That is a very good point that you raised (BTW we have right at a $1,000,000 portfolio). I was running numbers to see if we are on track retirement wise (would like to have the opportunity to retire at 55) and trying to figure out how much we need to save (and make, return wise, in the fu...

ljford7

The Boskin Commission, formally called the "Advisory Commission to Study the Consumer Price Index", was appointed by the United States Senate in 1995 to study possible bias in the computation of the Consumer Price Index (CPI), which is used to measure inflation in the United States. Its f...

ljford7

If the rate is truly only .25% difference between the 15 year and 30 year, it would be very wise to take the 30-year just for the flexibility in the event something happens (and something will happen - ask Murphy).

ljford7

My replacement came in at quite a good bump in earnings compared to what I was making. To get the same skill set, the company had to pay more than it was paying me. This is the loyalty problem that employers have. Employers want their employees to be loyal, but then take advantage of them when they...

ljford7

We use VWUIX - Vanguard Intermediate-Term Tax-Exempt Fund Admiral for the majority of our emergency fund. We have check writing capabilities with it so it is a breeze to use (if needed). We also keep about 1 month in a savings account (Capital One 360) just for the easier access. VWUIX tends to retu...

ljford7

The grass is always greener….yep, that is my fear. Do not let this or fear deter you from a different job. Companies will always use the unknown (grass is always greener) against you in order to get you to stay longer. Look around at other people that have left, did they come back? That will answer...

ljford7

I would take the loan purely based on having access to cash on hand versus tying it up in a vehicle. I recently bought a car - dealer offered a .9% on 5-year loan. I have the money in the bank to pay outright for cash, but when I can use their money for it at such a low rate, why not? It is going to...

ljford7

Have any of these cases been decided?

I am lucky that my employer has a good low cost 401K (uses Vanguard funds), but am curious what the courts decided.

ljford7

The thread below has some good discussion.

http://www.bogleheads.org/forum/viewtop ... 1&t=150947

I am moving mine to a couple of bond funds (VWITX and VMLTX). I am tired of seeing a large sum of money just sit there and make minimal returns.

ljford7

Thank you for your responses (I was concerned with buying a distribution)!

ljford7

Hi,

Quick question. I am going to invest $40,000 in VWITX and $25,000 in VMLTX. Would it be better to wait until the first of the year? I am concerned about any tax implications (I would have to pay state taxes).

Thanks!

ljford7

starboard Vanguard appears to be using the IRR function. In excel use the same data set that you used for =XIRR and use the =IRR function instead (use different guesses if you get an error - I had to try a bunch to get it to work). You should get the same return Vanguard does. The below link has a ...

ljford7

Have you tried Google Books? I tend to receive good results finding older books there.

ljford7

Thank you for all of the thoughtful responses. Just to be clear, I haven't tried it and won't try it, but was intrigued by the concept. The authors of both of those books made it seem very easy, which I know isn't the case (if was easy, then why are they writing books about it instead of doing it an...

ljford7

I am a young investor, 28, and have been educating myself in investing and so far feel like I am on the right track. I have been trying to commit to the B&H investment philosophy (I am 100% committed to using low-cost index funds for my investing - would like to further my knowledge about ETFs t...

ljford7

[quote="FoolishJumper"][/quote] Thank you for your's and everyone else's very helpful advice. I have made an IPS based on a plan in the link you provided and I feel considerably more comfortable with the portfolio after putting the IPS together. One more question for you (if you don't mind...

ljford7

If I was in your case (and unable to sell the company stock), then I'd at least double my fixed income. Based on this, I'd recommend the following allocation: His/Her 401k 100% PIMCO Total Return (PTTRX) His/Her Roth IRA 100% Vanguard Total Stock Market (VTSMX) I am glad that I posted here, because...

ljford7

To whatever extent possible, you should try to reduce your company stock to no more than 5-10% of your total retirement portfolio. You probably need more in bonds. What industry is your company in? The company we work for is a large construction company that has been in business for over 150 years ...

ljford7

Emergency Fund: 6 months of expenses Debt: Mortage $208,000 @ 5.75% (Paying on a 15 year schedule) Student Loan $13,000 @ 2.625% (Will be paid off in approx 1 year) Tax Filing Status: Married filing Jointly Tax Rate: 25% Federal 4% State (Arizona) Age: 28, Wife 26 Desired Asset allocation: 90/10 or...

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