Search found 91 matches

by y5a5gdqwty
Sun Jan 28, 2018 12:03 am
Forum: Personal Investments
Topic: Solo 401k vs company 401k
Replies: 5
Views: 719

Re: Solo 401k vs company 401k

Some states (e.g. MA) tax contributions to Solo 401K, but not contributions to corporate traditional 401k. If you live in such state, then her 401k is preferable.
by y5a5gdqwty
Thu Oct 26, 2017 1:07 am
Forum: Investing - Theory, News & General
Topic: VEU Asset Allocation - "Other 8.90%" ?
Replies: 4
Views: 894

Re: VEU Asset Allocation - "Other 8.90%" ?

Now the asset allocation of VEU is back to normal. "Other" allocation dropped today to 0.18%.

Cash: 0.68
US Stock: 0.77
Non US Stock: 98.33
Bond: 0.04
Other: 0.18

http://portfolios.morningstar.com/fund/summary?t=VEU
by y5a5gdqwty
Tue Oct 03, 2017 8:43 pm
Forum: Investing - Theory, News & General
Topic: VEU Asset Allocation - "Other 8.90%" ?
Replies: 4
Views: 894

VEU Asset Allocation - "Other 8.90%" ?

I noticed that Personal Capital recently increased my "Alternatives" and decreased International stock allocation. It turns out Personal Capital considers "Other" as Alternative". I'm wondering what "Other" means in the Asset Allocation of VEU (Vanguard FTSE All-World ex-US Index Fund ETF Shares) and why is it so high (8.9%)? Cash: 1.01 US Stock: 0.97 Non US Stock: 89.11 Bond: 0.00 Other: 8.90 http://portfolios.morningstar.com/fund/summary?t=VEU In comparision, in VXUS (Vanguard Total International Stock Index Fund ETF Shares VXUS) "Other" is only 2.12%: http://portfolios.morningstar.com/fund/summary?t=VXUS And in VTI "Other" is 0%: http://portfolios.morningstar.com/fund/summary?t=VTI
by y5a5gdqwty
Thu Jul 27, 2017 9:18 pm
Forum: Personal Investments
Topic: What is the Fidelity Equity Index Commingled Pool Class 1?
Replies: 4
Views: 848

Re: What is the Fidelity Equity Index Commingled Pool Class 1?

I asked similar questions about commingled pools in 2011, but got no responses from Bogleheads:

viewtopic.php?t=74721

Nevertheless, I'm happily investing into them ever since and see no problem. It's like a mutual fund for any practical purposes.
by y5a5gdqwty
Wed Jul 26, 2017 11:26 am
Forum: Investing - Theory, News & General
Topic: International bond fund foreign tax?
Replies: 7
Views: 1260

Re: International bond fund foreign tax?

Very interesting. Thanks, AlohaJoe for detailed thoughts!
not4me: this is dividend income; not sure it can be carried forward.
by y5a5gdqwty
Tue Jul 25, 2017 1:51 pm
Forum: Investing - Theory, News & General
Topic: International bond fund foreign tax?
Replies: 7
Views: 1260

International bond fund foreign tax?

I'm wondering why Total International Bond Index Fund (BNDX ETF) pays much less (12 times less) foreign taxes than Total International Stock Fund (VXUS ETF):

BNDX: Foreign Tax = Income Dividend x 0.00507
VXUS: Foreign Tax = Income Dividend x 0.06454

Source: http://www.vanguard.com/pdf/ftcvf.pdf

I guess it's a good thing that not much is lost to foreign taxes, especially as no foreign tax available for non-taxable accounts (where the bonds are usually held). But Could you explain the reason why bonds dividends are barely taxed by foreign countries?
by y5a5gdqwty
Mon May 22, 2017 9:22 pm
Forum: US Chapters
Topic: I think I found Rick Ferri
Replies: 64
Views: 25735

Re: I think I found Rick Ferri

. . .. Rick Ferri, LLC owns 25% of Portfolio Solutions, LLC
Isn't this very unboglehedish? Why take concentrated risk in one company instead of selling it off and investing the proceeds in Total Stock Market?
by y5a5gdqwty
Thu May 11, 2017 2:52 am
Forum: Personal Finance (Not Investing)
Topic: Best Social Security claim strategy after 2015 law changes
Replies: 4
Views: 1434

Best Social Security claim strategy after 2015 law changes

Hello Bogleheads, What is the best claim strategy to maximize SS benefits for a married couple if wife's SS benefits are less than 50% of husband's benefits? From the following link I understand that husband cannot receive 50% of wife's benefits while waiting for his own benefits to grow and wife cannot get 50% of husband's benefits while husband is waiting for his benefit to grow. Is that correct? https://www.ssa.gov/planners/retire/claiming.html Can wife get her own benefits while husband waits for his benefit to grow and once husband claims his benefits at age 70, can wife switch to 50% of husbands benefits? Suppose wife is 1 year younger than the husband. Which one of the following strategies is the best? 1. Wife claims her benefits at ...
by y5a5gdqwty
Tue Mar 14, 2017 2:40 am
Forum: Investing - Theory, News & General
Topic: Which Portfolio Aggregators support Manual Classification of Unknown Holdings?
Replies: 0
Views: 415

Which Portfolio Aggregators support Manual Classification of Unknown Holdings?

There are some holdings without ticker symbols (like Commingled Pools in 401k), so portfolio aggregators cannot figure out the asset classes and usually put them into "Other" category. Personal Capital allows Manual Classification of such holdings (where one can specify percentages of different asset classes or substitute ticker symbols). I'm wondering if there are any other Portfolio Trackers/Aggregators that support manual classification. I couldn't find any. Is Personal Capital the only one?
by y5a5gdqwty
Mon Aug 03, 2015 8:52 pm
Forum: Investing - Theory, News & General
Topic: How much of HELOC should I get assuming responsible use?
Replies: 7
Views: 1577

Re: How much of HELOC should I get assuming responsible use?

I was thinking about BofA as I have other accounts with them:

https://www.bankofamerica.com/home-loan ... t-rates.go

How does it compare to Penfed? Where should I shop for better rates (and $0 fees)?
by y5a5gdqwty
Sun Aug 02, 2015 12:16 am
Forum: Investing - Theory, News & General
Topic: How much of HELOC should I get assuming responsible use?
Replies: 7
Views: 1577

Re: How much of HELOC should I get assuming responsible use?

One can claim 100K of HELOC on tax only if one actually uses the money and pays interest. But what are pros/cons of getting approved for more than 100K of HELOC? I guess I'd like to apply for HELOC large enough to cover most of my potential needs in the next 10 years, but not too large to negatively affect my ability in applying to other kinds of credit. So, I guess the number is somewhere between $100K and 500K (the max I can get approved). Are there any rules of thumb for arriving to the optimal number? Is it easy to increase or reduce the available max in the future?
by y5a5gdqwty
Sat Aug 01, 2015 10:03 pm
Forum: Investing - Theory, News & General
Topic: How much of HELOC should I get assuming responsible use?
Replies: 7
Views: 1577

How much of HELOC should I get assuming responsible use?

I would like to apply for HELOC (Home Equity Line of Credit) for "just in case". I may never use it, but would like to have it available for potential short term cash flow bridge (e.g. buying second property as "cash deal" or use it temporary while selling other investments). Assuming I can get approved for max HELOC of $500K, should I apply for the max available to me or should I apply to a smaller amount (e.g. $300K, $100K)? Are there downsides for applying to the max of $500K? Will this affect my ability to apply for other types of credit in the future (like credit cards, mortgages, other loans)?
by y5a5gdqwty
Sun Feb 15, 2015 9:27 pm
Forum: Personal Finance (Not Investing)
Topic: Excess contribution to Solo 401k – help needed
Replies: 4
Views: 1117

Re: Excess contribution to Solo 401k – help needed

Thanks ERISA Stone for the very informative reply! Although I'm still not sure how to proceed :)

The thread you referenced also has a good discussion, but I think it still doesn't have a definitive conclusion.

I'm under 50, so cannot do a catch-up contribution.
by y5a5gdqwty
Sat Feb 14, 2015 3:58 pm
Forum: Personal Finance (Not Investing)
Topic: Excess contribution to Solo 401k – help needed
Replies: 4
Views: 1117

Re: Excess contribution to Solo 401k – help needed

I did max out my employee salary deferral for the full 17.5K. So unfortunately I cannot recode $1000 employer contribution to $1000 employee contribution.
by y5a5gdqwty
Sat Feb 14, 2015 2:28 pm
Forum: Personal Finance (Not Investing)
Topic: Excess contribution to Solo 401k – help needed
Replies: 4
Views: 1117

Excess contribution to Solo 401k – help needed

I miscalculated my self-employed income and over contributed to my Solo 401k. All contributions for the year of 2014 were done in 2014 and I mistakenly put extra $1,000 as an employer profit sharing contribution. How to correct this error? Would you please comment on the following options? 1. Would IRS mind if I overstate my income and pay more tax than needed, but leave that $1,000 in my Solo 401k? 2. What if I just leave that $1,000 in my Solo 401k and do nothing about it? Would IRS mind? After all, I’m not taking deduction for the contribution and the money will be taxed upon withdrawal. 3. Can that $1,000 contributed in 2014 be re-characterized as a 2015 contribution? 4. If none of the above options are feasible, what it involves to rem...
by y5a5gdqwty
Fri Mar 21, 2014 9:44 pm
Forum: Investing - Theory, News & General
Topic: TreasuryDirect entity accounts
Replies: 6
Views: 968

Re: TreasuryDirect entity accounts

I didn't realize there could be any wrongdoing with this strategy. Outright lying would be illegal, of cause. For example, if one lies about having a living trust or having self-employment business. But why it would be illegal to set up a trust or start sole proprietorship while keeping the goal of opening TreasuryDirect accounts in mind?
by y5a5gdqwty
Fri Mar 21, 2014 9:11 pm
Forum: Investing - Theory, News & General
Topic: TreasuryDirect entity accounts
Replies: 6
Views: 968

Re: TreasuryDirect entity accounts

I'd like to open an account either as "Sole proprietorship" or "Living Trust", hence the above questions.
http://www.treasurydirect.gov/indiv/hel ... rietorship
by y5a5gdqwty
Fri Mar 21, 2014 5:19 pm
Forum: Investing - Theory, News & General
Topic: TreasuryDirect entity accounts
Replies: 6
Views: 968

Re: TreasuryDirect entity accounts

Any responses, please?
by y5a5gdqwty
Wed Mar 19, 2014 7:21 pm
Forum: Investing - Theory, News & General
Topic: TreasuryDirect entity accounts
Replies: 6
Views: 968

TreasuryDirect entity accounts

What do you guys think about the following? I'd like to open one or more TreasuryDirect entity accounts to by extra i-bonds: http://www.treasurydirect.gov/indiv/help/TDHelp/help_ug_292-EntityAccountsLearnMore.htm However have few questions: 1. What happens if the entity no longer exists? For example Trust is revoked or Sole Proprietorship is dissolved (the person is not self-employed anymore). Must the account be closed and I-bonds sold/retitled? Is it a taxable event? 2. Sole Proprietorship. To open Sole Proprietorship account, does one need to have business income? 3. Are dividents in Sole Proprietorship account considered business income and the self-employed tax needs to be paid? 3. Trust. How to create a simple living trust or multiple...
by y5a5gdqwty
Sat Feb 02, 2013 3:35 pm
Forum: Personal Finance (Not Investing)
Topic: Excess contribution to Roth IRA - please help.
Replies: 7
Views: 1668

Re: Excess contribution to Roth IRA - please help.

Thanks Alan, great info! Regarding your example "the total value when you convert is then 9,140, of which only $140 is taxable", can I rollover $140 to Solo 401k and convert only $9,000 to Roth, completely tax-free? And the following are two theoretical questions. There is no practical purposes of doing so, just want to understand if it's possible. 1. Also, can I do recategorization/conversion of the 2012 and 2013 contributions separately? That is, the $3,500 + earnings right now and the $5,500 + earnings later this year? 2. Can I rollover the Simple IRA to TIRA first and then to Solo 401k? Are there any restrictions on the number of rollovers? As for lifesoft's question about the earnings amount in my Roth IRA, they are not much ...
by y5a5gdqwty
Sat Feb 02, 2013 2:45 pm
Forum: Personal Finance (Not Investing)
Topic: Excess contribution to Roth IRA - please help.
Replies: 7
Views: 1668

Re: Excess contribution to Roth IRA - please help.

lifesoft, thanks for your suggestion. Unfortunately, I've already contributed for 2013 and I don't even know if I'll be eligible for 2013 contribution at all. So, if my MAGI stays high, I may end up paying 6% for several years. Also, what do you mean by "the 20% earned by the excess amount for a net gain of 14% tax-free"? How did you come up with 20% figure?
by y5a5gdqwty
Sat Feb 02, 2013 2:06 pm
Forum: Personal Finance (Not Investing)
Topic: Excess contribution to Roth IRA - please help.
Replies: 7
Views: 1668

Re: Excess contribution to Roth IRA - please help.

Thanks Alan for your detailed response. Could you please clarify few additional questions: If I do option 1, when will I receive the 1099R form for the distribution? Will I receive it right now, before April 15, 2003? (because if I won't receive this form right now, how would I report the distribution in my 2012 return?) Regarding option 2, it would be great if I can recategorize back to Roth right after the recharacterizations are done, as you suggested. However, the following quote in wiki is confusing. It makes me think that I cannot do another recharacterization until 2014. Please advise. http://www.bogleheads.org/wiki/IRA_recharacterization If you recharacterize a conversion, you cannot re-convert the same money in the year of the orig...
by y5a5gdqwty
Sat Feb 02, 2013 12:26 pm
Forum: Personal Finance (Not Investing)
Topic: Excess contribution to Roth IRA - please help.
Replies: 7
Views: 1668

Excess contribution to Roth IRA - please help.

Dear Bogleheads, Here is the situation I need your help with: 1. I contributed full $5,000 to Roth IRA in Jan 2012 for the year of 2012. 2. I'm now doing my taxes and realize that my MAGI is too high for full Roth contribution in 2012 and I've over-contibuted about $3,500. 3. I have a Simple IRA with about $20,000 and a Solo 401k at Fidelity. I'm not contributing to the Simple IRA anymore. It was opened more than 2 years ago, and the last contribution was made in 2011. The Solo 401k at Fidelity is the current self-employed retirement plan. I've no other IRAs. 4. To make things worse, I also contributed full $5,500 to Roth IRA in Jan 2013 for the year 2013. It's possible I also over-contributed for the year of 2013. What is the best way out ...
by y5a5gdqwty
Wed Jan 30, 2013 5:41 pm
Forum: Investing - Theory, News & General
Topic: US Government Securities
Replies: 14
Views: 2872

Re: US Government Securities

I'm interest to know where the money comes to make up for the budget deficit if it doesn't come from the selling of bonds.
That's easy. Money is simply entered on the computer. Money is just a number.
by y5a5gdqwty
Mon Dec 24, 2012 3:32 am
Forum: Personal Finance (Not Investing)
Topic: "Asset Allocation" for insurance?
Replies: 3
Views: 787

"Asset Allocation" for insurance?

1. Could you recommend any rule(s) of thumb for choosing optimal auto, home and umbrella insurance coverage? For example, how about buying a sufficient amount of umbrella insurance, but the absolute minimum of auto and home insurance? (the minimum would be the amount dictated either by the state (for auto insurance) or by the insurance company (for auto/home) in order to get the umbrella insurance.) Are there any insurance principles, similar to bogleheads investing principles (simplicity, etc)? 2. How much of auto insurance would you recommend for the following categories to supplement a $1M or $2M umbrella insurance? - Uninsured Motorist - Underinsured Motorist - Compulsory Bodily Injury - Optional Bodily Injury - Property Damage - Person...
by y5a5gdqwty
Sat Dec 01, 2012 1:33 pm
Forum: Personal Investments
Topic: Max contribution to Solo 401(k) - please help
Replies: 5
Views: 2682

Re: Max contribution to Solo 401(k) - please help

Thanks PaddyMac, I did the Fidelity worksheet 401k-CW-0902.pdf and arrived to the same number as Vanguard: $18,904.10 This is about $2K lowers than I was hoping. Could you please review where is the fallacy here? Fidelity worksheet: 1. Business Net Profits: $22,390 2. Self-Employment Tax Deduction: $1,581.80 3. Adjusted Net Business Profits: $20,808.20 (Subtract Line 2 from Line 1) 4. Annual Salary Deferral Limit: $17,000 5. Maximum Salary Deferral Amount: $17,000 (The lesser of Line 4 and Line 3) 6. Adjusted Net Business Profits after Salary Deferral: $3,808.20 (Subtract Line 5 from Line 3) 7. Calculation A: Divide Line 6 by 2.00: $1,904.10 8. Calculation B: Multiply Line 3 by .20: $4,161.64 9. Calculation C: Subtract Line 5 from $50,000: ...
by y5a5gdqwty
Fri Nov 30, 2012 6:01 pm
Forum: Personal Investments
Topic: Max contribution to Solo 401(k) - please help
Replies: 5
Views: 2682

Max contribution to Solo 401(k) - please help

Here is the situation: Wife is self employed with net business income $22,390 and has Solo 401k. Husband has a day job. We're married filing jointly and below 50 y.o. so no catch-up contributions. What is the max amount can we contribute to Solo 401k? Does that amount depend on the total family income and other factors OR does it only depend on wife's net business income of $22,390? Vanguard calculator at https://personal.vanguard.com/us/SbsCalculatorController gives the following number (without explanation of how they arrived to it): Individual 401(k) maximum total contribution amount allowed: $18,904.10 Does Vanguard's calculator assume the business income is the only family income? I'm confused because another calculator at http://www.s...
by y5a5gdqwty
Wed Oct 10, 2012 2:07 am
Forum: Investing - Theory, News & General
Topic: Increase Equities With Age?
Replies: 2
Views: 775

Re: Increase Equities With Age?

Rob Arnott examined 3 options: "Glidepath 80 -> 20", "Static Mix 50/50" and "Inverse Glidepath 20 -> 80" and determined that "Inverse Glidepath 20 -> 80" is the best. However, if he were examining the 4th option, "Static allocation 100% stocks", he would probably determine it's even better, because as he said in footnote #1, "During this period, stocks averaged an annual 8.3% return and bonds 3.9%.". So, why anyone would mess up with bonds at all if "stocks averaged an annual 8.3% return and bonds 3.9%." ?
by y5a5gdqwty
Wed Oct 03, 2012 5:17 pm
Forum: Investing - Theory, News & General
Topic: VT in taxable & ACWI in tax-deferred?
Replies: 5
Views: 1200

Re: VT in taxable & ACWI in tax-deferred?

I think my question is generic and is applicable to others too, not just to my individual circumstances. I don't have such circumstances yet; just trying to theorize a generic rule. Let me try to make the situation more generic. Suppose one practices tax-efficient asset location and needs to hold Total U.S. Market index fund in both taxable and tax-advantaged accounts because there is no enough space for stocks in taxable. If one has the same index fund (say VTI) in both accounts and needs to sell some of the shares in taxable, then that may trigger a wash sale if one also needs to re-balance back to the desired asset allocation by buying the same shares in tax-advantaged account. A wash sale can be also triggered if the dividends in the ta...
by y5a5gdqwty
Wed Oct 03, 2012 11:45 am
Forum: Investing - Theory, News & General
Topic: VT in taxable & ACWI in tax-deferred?
Replies: 5
Views: 1200

Re: VT in taxable & ACWI in tax-deferred?

Hi! I'd like to hear any your opinions about that, please.
by y5a5gdqwty
Wed Oct 03, 2012 12:45 am
Forum: Investing - Theory, News & General
Topic: VT in taxable & ACWI in tax-deferred?
Replies: 5
Views: 1200

VT in taxable & ACWI in tax-deferred?

My tax-deferred space is larger than taxable, so I hold stock index funds in both taxable and tax-deferred accounts. For simplicity, I use VT (Vanguard Total World) for stock fund in both accounts. Is it a good idea to always use different funds in taxable and tax-deferred accounts (like VT in taxable & ACWI in tax-deferred) in order to avoid worrying about potential wash sales in the future?
by y5a5gdqwty
Wed May 09, 2012 12:42 am
Forum: Personal Finance (Not Investing)
Topic: SS max. family benefit..redo
Replies: 23
Views: 1533

Re: SS max. family benefit..redo

I thought spouse's benefit is 50% of yours benefit. If your benefit is $2460/mo, shouldn't spouse's benefit be $1230/mo? Where $900 came from?
by y5a5gdqwty
Sun Mar 25, 2012 3:45 am
Forum: Investing - Theory, News & General
Topic: Merrill Edge now offers "self-directed" Solo 401k
Replies: 1
Views: 2050

Merrill Edge now offers "self-directed" Solo 401k

Now Merrill Edge offers "self-directed" Solo 401k: http://www.merrilledge.com/401k It include Roth option, record-keeping service, loan option and many other perks. However, it looks very pricey: Set-up fee: $100 (currently waived) Ongoing monthly admin fee: $20-$25 Ongoing monthly participant fee: $3 Account wrap-up fee: 0.52% There are only 14 mutual funds with 0.5% - 1% expense ratios. There are also "model portfolios" build on top these mutual funds. There are also many other fees, like $50-$100 "distribution fee", even if the distributions are taken during retirement. I don't understand why they call it "self-directed". What is "self-directed" means there if there are only 14 funds, lot...
by y5a5gdqwty
Sun Mar 25, 2012 3:24 am
Forum: Investing - Theory, News & General
Topic: Is it really that easy to set up Solo 401k trust?
Replies: 3
Views: 2188

Re: Is it really that easy to set up Solo 401k trust?

Is it possible to set up a Solo 401k Trust without a lawyer? What is the process? The Adoption Agreement seems to be very simple - just one page, which can be taken as an example from Vanguard, Fidelity or any other company. Can one just draft an adoption agreement, file it with the authorities and open a trust brokerage account? I'm not saying I want to go this rote, but I just want to understand the process of trust setup in general and Solo 401k Trust in particular. From the article quoted above, it seems 401k trust is much simpler than IRA and anyone can do it.
by y5a5gdqwty
Fri Mar 23, 2012 4:06 am
Forum: Investing - Theory, News & General
Topic: Is it really that easy to set up Solo 401k trust?
Replies: 3
Views: 2188

Is it really that easy to set up Solo 401k trust?

http://www.solo401k.com/2010/06/18/solo-401k-provides-checkbook-control-20-for-the-self-employed/ To own and directly control retirement assets in a Solo 401(k) plan can be much simpler. Jeremy would simply have his plan setup to name himself as trustee. He would then direct the plan to purchase assets to be titled to: Jeremy Smith Solo 401k Trust …or whatever Jeremy chooses to name the trust that exists for the sole purpose of managing the assets for his Solo 401(k) plan. In this case, there is absolutely no need to setup an LLC for the purpose of gaining checkbook control. This convenience is little known because conventionally 401(k) plans have served as an investment vehicle for large corporations with many participants. Solo 401(k) pl...
by y5a5gdqwty
Sat Feb 11, 2012 11:30 pm
Forum: Investing - Theory, News & General
Topic: Why employers cannot fund an HSA of your choice?
Replies: 11
Views: 1511

Why employers cannot fund an HSA of your choice?

Why the employers need to have a contract with a specific HSA administrator and why they cannot fund any HSA that employee provides? Why is it different from depositing employee's pay check, where the employee can provide any checking or savings account number to the employer and instruct the employer to deposit the money there? I don't see any need for coordination or contract between the employer and the HSA administrator - it's just a matter of making the deposit, same as the pay check situation. Please educate me.
by y5a5gdqwty
Sun Feb 05, 2012 8:39 pm
Forum: Investing - Theory, News & General
Topic: ok - what's with all the TIPS?
Replies: 35
Views: 4313

Re: ok - what's with all the TIPS?

1. Here is an intereting thought. Treasury bonds are backed by the full faith and credit of the U.S. US government. That means the government can always create ("print") more money to pay the debt. This is fine with nominal bond. If creating more money results in inflation, so be it. The government can always meet their obligation in nominal dollars. However, it becomes tricky with TIPS. Suppose TIPS become popular investment with large volume, an unexpected inflation happens, the covernment "prints" more money to pay on TIPS, which causes even more inflation and they cycle repeates. So, theoretically, it seems TIPS can fuel inflation instead of protecting agains it. 2. I'm still trying to understand the justification fo...
by y5a5gdqwty
Sat Feb 04, 2012 11:17 am
Forum: Investing - Theory, News & General
Topic: Vanguard TIPS article
Replies: 23
Views: 3832

Re: Vanguard TIPS article

Thanks for the explanation. I missed the fact that the efficient frontier is based completely on the past and no one can predict what it will be in the future. That's the fallacy on my part. However, isn't the expected return of TIPS and nominals the same anyway (otherwise people would only buy those with higher expected return)? Also what is the theory behind allocating 50% in TIPs? Why not according to market cap, which is about 3% of Total Bond market? Here is the problem I'm facing: if I started thinking about over-weighting TIPs, then the following questions immediately come to mind: Why not REITs? Why not small cap? Why not gold? Please help me overcome this dilemma as I want my portfolio to be as simple as possible, as efficient as p...
by y5a5gdqwty
Sat Feb 04, 2012 2:07 am
Forum: Investing - Theory, News & General
Topic: Vanguard TIPS article
Replies: 23
Views: 3832

Re: Vanguard TIPS article

you could not produce the stock TIPS performance by adjusting the ration of nominals to stocks...... If we assume that Vanguard Total Bond and Vanguard Total Stock funds are on Efficient Frontier (as many posters on this forum imply), then what you say contradicts the Two Fund Separation Theorem. If you are right, then this implies that Vanguard Total Bond fund is not on the efficient frontier. If so, is Vanguard TIPs fund on the efficient frontier? If not, does the combination of Total Bond and TIPs funds belong to the efficient frontier? If so, what the allocation of each fund in the mix should be? If only the combination of TIPs and nominals is on the efficient frontier, but not each fund separately, then there must be exact ratio of TI...
by y5a5gdqwty
Fri Feb 03, 2012 6:29 pm
Forum: Investing - Theory, News & General
Topic: Vanguard TIPS article
Replies: 23
Views: 3832

Re: Vanguard TIPS article

Is it correct to assume that TIPS and nominal treasuries have the same expected return for a given risk? Note, I'm not talking about the same maturity as TIPS have lower expected returns than nominal treasury bonds of the same maturity. What I mean is one can pick TIPS and nominal treasuries with different durations but with the same risk (standard deviation) and they both will have the same expected return. If that's the case, TIPS are not necessary at all as they don't add anything to the portfolio in terms of risk and expected return. According to the Two Fund Theorem, any efficient portfolio (the one that is on the efficient frontier) can be obtained by a combination of two efficient portfolios. As Total Stock Market index and Total Bon...
by y5a5gdqwty
Tue Aug 09, 2011 5:42 pm
Forum: Personal Finance (Not Investing)
Topic: Avoid money structuring - reverse structuring?
Replies: 15
Views: 7236

Thanks guys for your responses! I hope common sense will prevail...
by y5a5gdqwty
Mon Aug 08, 2011 11:23 pm
Forum: Personal Finance (Not Investing)
Topic: Avoid money structuring - reverse structuring?
Replies: 15
Views: 7236

Avoid money structuring - reverse structuring?

Hi guys, In the United States, the Bank Secrecy Act requires the filing of a currency transaction report (CTR) for transactions of more than $10,000 in currency (US or foreign). Financial institutions suspecting deposit structuring with intent to avoid the law are required to file a suspicious activity report. Title 31 of the United States Code, section 5324, provides (in part): No person shall, for the purpose of evading the reporting requirements of section 5313 (a) or 5325 or any regulation prescribed under any such section, the reporting or record keeping requirements imposed by any order issued under section 5326, or the record keeping requirements imposed by any regulation prescribed under section 21 of the Federal Deposit Insurance A...
by y5a5gdqwty
Sun Aug 07, 2011 11:27 am
Forum: Investing - Theory, News & General
Topic: Paperwork for individual/solo 401k (s-corp, 2 employees)
Replies: 7
Views: 2113

I have related questions.

1. If I already have SIMPLE IRA, can I open solo 401k for the next year without formally terminating SIMPLE IRA? Can I switch between the plans back and forth from one year to another?, without formally terminating either plan? For example:
2011 - contribute to SIMPLE IRA
2012 - contribute to Solo 401k
2013 - contribute to SIMPLE IRA
2014 - contribute to Solo 401k

2. If I have solo 401k, can I transfer portion of it to an IRA any time (for example, to keep the balance below the threshold of filing 5500-EZ)?

3. Is it possible to transfer from solo 401k to SIMPLE IRA, or must it be traditional IRA?
by y5a5gdqwty
Tue May 17, 2011 7:34 pm
Forum: Investing - Theory, News & General
Topic: Commingled Pool Regulatory Protections
Replies: 1
Views: 1010

I searched the Internet and couldn't find much info about commingled pools, except some standard definitions. Found an interesting discussion on the other forum, but there are more questions than answers as well: http://www.early-retirement.org/forums/ ... 27219.html.

Called Fidelity and was told that there is nothing to worry about and that the commingled pool is the same thing as as the mutual fund, just not open to the public, has less regulations, and no prospectus. I asked why there is no prospectus and the answer was "because it's not required".

What are your thoughts on this? Subjective opinions are also welcome.
by y5a5gdqwty
Sun May 15, 2011 3:57 am
Forum: Investing - Theory, News & General
Topic: Commingled Pool Regulatory Protections
Replies: 1
Views: 1010

Commingled Pool Regulatory Protections

Mutual Fund Regulatory Protections were discussed many times here. Basically, each mutual fund is set up legally as an independent company. If the mutual fund company goes bankrupt, the mutual fund itself would still exist and you won't lose your investments.

But what happens with the Commingled Pool if the company goes bankrupt? I own some Pyramis Index Lifecycle Commingled Pool Class U in my 401K. The absence of prospectus also bothers me.

Should I worry about the "commingled pool" thing and switch to mutual funds for better protection?
by y5a5gdqwty
Sat Mar 12, 2011 10:22 pm
Forum: Personal Investments
Topic: What is YOUR bond/equity ratio compared to your age/horizon?
Replies: 80
Views: 15557

Re: What is YOUR bond/equity ratio compared to your age/hori

EmptyWallet wrote: I'm all in VGTR2045. I'm having serious thoughts of going all in VGTR2025, which would make me 75/25 equities/bonds.
I have a similar dilemma, but have the following thoughts:

1. What about keeping VGTR2045, but adding Total Bond Market Index Fund to have the desired stock/bond ratio?

2. Keep VGTR2045 but also add a combination of other fine funds, like Target Date Income, Wellesley Income Fund, etc. Just make sure that the final mix provides the desired asset allocation.

What Bogleheads think about such strategy? Would it be inferior to just switching to VGTR2025?