Search found 6055 matches

by rkhusky
Tue Jan 22, 2019 10:10 pm
Forum: Investing - Theory, News & General
Topic: The Value "Premium" has been ZERO for 30 years
Replies: 105
Views: 8279

Re: Factor exposure?

It's the only way to get factor exposure, because the factor is defined as Long-Short. Otherwise, it is just a bet on one segment of the market. rkhusky: Kindly explain. Thank you and best wishes. Taylor The FF factor model is defined in terms of various constants times (market-risk free), (large-s...
by rkhusky
Tue Jan 22, 2019 6:43 pm
Forum: Personal Finance (Not Investing)
Topic: Vanguard Tax Forms Now Online
Replies: 67
Views: 6926

Re: Vanguard Tax Forms Now Online

Incidentally, the 2018 US Government Obligation breakdown is here: https://personal.vanguard.com/pdf/USGO_012019.pdf

And the muni bond state specific information is here: https://personal.vanguard.com/pdf/INBST_012019.pdf

Hard to find these with Google.
by rkhusky
Tue Jan 22, 2019 6:36 pm
Forum: Investing - Theory, News & General
Topic: The Value "Premium" has been ZERO for 30 years
Replies: 105
Views: 8279

Re: The Value "Premium" has been ZERO for 30 years

I think most long only SV funds have a market beta of about 1. That’s one potential advantage of possibly paying a bit more for a SV fund with deeper exposures; take on less market beta for same exposure to the other factors. And the point of tilting is to diversify away from the market beta that a...
by rkhusky
Tue Jan 22, 2019 5:49 pm
Forum: Investing - Theory, News & General
Topic: The Value "Premium" has been ZERO for 30 years
Replies: 105
Views: 8279

Re: The Value "Premium" has been ZERO for 30 years

I think most long only SV funds have a market beta of about 1. That’s one potential advantage of possibly paying a bit more for a SV fund with deeper exposures; take on less market beta for same exposure to the other factors. And the point of tilting is to diversify away from the market beta that a...
by rkhusky
Tue Jan 22, 2019 5:46 pm
Forum: Personal Finance (Not Investing)
Topic: Vanguard Tax Forms Now Online
Replies: 67
Views: 6926

Re: Vanguard Tax Forms Now Online

The December QD estimate for Small Cap Index was off by quite a bit: 75% vs 69.1%. Mid-cap was closer: 90% vs 88.5%, as was Total Stock Market: 95% vs 94.0%
by rkhusky
Mon Jan 21, 2019 5:29 pm
Forum: Investing - Theory, News & General
Topic: The Value "Premium" has been ZERO for 30 years
Replies: 105
Views: 8279

Re: The Value "Premium" has been ZERO for 30 years

Add to that the lack of correlation between the factors, and I think high tilt makes a lot of sense. I thought the small and value factors had high correlation with the market factor. A big benefit to diversifying across market beta, size, and value, is the lack of correlations. From my memory, siz...
by rkhusky
Mon Jan 21, 2019 5:26 pm
Forum: Investing - Help with Personal Investments
Topic: 55yrs old 50/50 or 60/40 in this environment
Replies: 11
Views: 1253

Re: 55yrs old 50/50 or 60/40 in this environment

Do you expect to have enough saved up by the time that your retire that you could withdraw 2-3% of your portfolio and live comfortably? That means that you have more than enough to live on and can either go conservative with a 30/70 - 50/50 portfolio at retirement or you could go aggressive with a 6...
by rkhusky
Mon Jan 21, 2019 3:59 pm
Forum: Investing - Theory, News & General
Topic: The Value "Premium" has been ZERO for 30 years
Replies: 105
Views: 8279

Re: The Value "Premium" has been ZERO for 30 years

Random Walker wrote:
Mon Jan 21, 2019 3:21 pm
Add to that the lack of correlation between the factors, and I think high tilt makes a lot of sense.
I thought the small and value factors had high correlation with the market factor.
by rkhusky
Mon Jan 21, 2019 9:55 am
Forum: Investing - Theory, News & General
Topic: Morningstar betaquote
Replies: 2
Views: 278

Re: Morningstar betaquote

Delete the "beta" part of the URL and just leave "quote". But that probably won't work once they make beta into alpha.
by rkhusky
Mon Jan 21, 2019 9:54 am
Forum: Investing - Help with Personal Investments
Topic: Setting a personal AA glide path
Replies: 14
Views: 1097

Re: Setting a personal AA glide path

I decided what I wanted my AA at retirement to be and then drew a straight line between my current AA and that, and adjusted my AA every year to match the line. And then when I found out I was going to retire earlier than expected, I drew a steeper line between where I was and my preferred AA at ret...
by rkhusky
Mon Jan 21, 2019 9:37 am
Forum: Investing - Theory, News & General
Topic: A look at equal weighting as we bid farewell to EQWS
Replies: 30
Views: 1278

Re: A look at equal weighting as we bid farewell to EQWS

A simple example to explore the effects of changing share prices on cap-weighted and equal-weighted funds. Suppose one has two companies A and B in the market. A has a market cap of $10,0000 (2,000 shares at $5/sh) and B has a market cap of $2,000 (1,000 shares at $2/sh). Your cap-weighted fund hold...
by rkhusky
Mon Jan 21, 2019 9:36 am
Forum: Investing - Theory, News & General
Topic: A look at equal weighting as we bid farewell to EQWS
Replies: 30
Views: 1278

Re: A look at equal weighting as we bid farewell to EQWS

What is the logic of entrusting the management of a lot more of my money to Tim Cook than Bryan DeBoer? If Apple underperforms, then Company X will step up and take their business. If you are cap-weighted, it doesn't matter. It does if Apple represents 5% of your portfolio but company X represents ...
by rkhusky
Sun Jan 20, 2019 9:51 pm
Forum: Personal Finance (Not Investing)
Topic: Roth Conversion and Capital Gains
Replies: 8
Views: 858

Re: Roth Conversion and Capital Gains

I was initially thinking that I would start Roth conversions, perhaps up to the 12% bracket or potentially higher. But, I am struggling with losing the 0% bracket for the capital gains. Am I looking at this correctly? Yes. If, with the income and cap gains, you are already at the top of the 12% bra...
by rkhusky
Sat Jan 19, 2019 2:59 pm
Forum: Investing - Theory, News & General
Topic: A look at equal weighting as we bid farewell to EQWS
Replies: 30
Views: 1278

Re: A look at equal weighting as we bid farewell to EQWS

You'll be holding more of Apple as it's falling and less of company X as it's rising, until they match each other in market cap, with cap-weighting versus equal weighting. If the total market cap of the two remains constant, then it doesn't matter. If the market cap of the two drops, then Company Y...
by rkhusky
Sat Jan 19, 2019 2:56 pm
Forum: Investing - Theory, News & General
Topic: A look at equal weighting as we bid farewell to EQWS
Replies: 30
Views: 1278

Re: A look at equal weighting as we bid farewell to EQWS

And if that's the case, then perhaps it makes more sense to equal weight? If the whole economy goes down, then I don't know if any weighting scheme will help. Equal weighting over-weights small companies, so if there is some economic condition that favors small companies, then it should do better, ...
by rkhusky
Sat Jan 19, 2019 2:45 pm
Forum: Investing - Theory, News & General
Topic: A look at equal weighting as we bid farewell to EQWS
Replies: 30
Views: 1278

Re: A look at equal weighting as we bid farewell to EQWS

What is the logic of entrusting the management of a lot more of my money to Tim Cook than Bryan DeBoer? If Apple underperforms, then Company X will step up and take their business. If you are cap-weighted, it doesn't matter. It does if Apple represents 5% of your portfolio but company X represents ...
by rkhusky
Sat Jan 19, 2019 1:38 pm
Forum: Investing - Theory, News & General
Topic: A look at equal weighting as we bid farewell to EQWS
Replies: 30
Views: 1278

Re: A look at equal weighting as we bid farewell to EQWS

What is the logic of entrusting the management of a lot more of my money to Tim Cook than Bryan DeBoer? If Apple underperforms, then Company X will step up and take their business. If you are cap-weighted, it doesn't matter. If you are equal weighted, then you will need to sell some of Company X an...
by rkhusky
Sat Jan 19, 2019 12:36 pm
Forum: Investing - Theory, News & General
Topic: A look at equal weighting as we bid farewell to EQWS
Replies: 30
Views: 1278

Re: A look at equal weighting as we bid farewell to EQWS

Equal weighting has a logic issue regarding mergers and acquisitions. Imagine that a company bought up the 2000 smallest companies in TSM, but kept everything about the companies the same. The only thing that changed was the ownership of the companies - they are now divisions of the parent company a...
by rkhusky
Sat Jan 19, 2019 9:02 am
Forum: Investing - Theory, News & General
Topic: What do you think about this 5 Fund portfolio vs 3 Fund one ?
Replies: 9
Views: 1326

Re: What do you think about this 5 Fund portfolio vs 3 Fund one ?

1) You are not Warren Buffet. 2) The author does not even follow Buffet's advice for his wife. 3) You are not Warren Buffet's wife.
by rkhusky
Sat Jan 19, 2019 8:49 am
Forum: Personal Finance (Not Investing)
Topic: Tax basis in TIRA after backdoor Roth conversion
Replies: 8
Views: 399

Re: Tax basis in TIRA after backdoor Roth conversion

Hi all, First post after several years of osmosis on this site. I have an annual battle with Turbotax to account properly for my backdoor Roth IRA. Assuming that I contribute a nondeductible $5,500 to a TIRA in 2018 and convert it to a Roth in the same year after a gain of $100 (so $5,600 converted...
by rkhusky
Sat Jan 19, 2019 8:23 am
Forum: Personal Finance (Not Investing)
Topic: [Wash sale concern - Are these stocks substantially identical?]
Replies: 49
Views: 1685

Re: [Wash sale concern - Are these stocks substantially identical?]

There is no specific IRS guidance on this subject, which you present as a reason why a corporate 401K (not a solo-401K) could trigger a wash sale. Coupled with the fact that the law has a blanket prohibition, which should be the default with no IRS guidance on exceptions, and a Supreme Court ruling...
by rkhusky
Sat Jan 19, 2019 8:10 am
Forum: Investing - Theory, News & General
Topic: 401K matching and front loading
Replies: 15
Views: 1024

Re: 401K matching and front loading

I used to get paid bi-weekly, which meant that there were usually 26 pay periods in the year, but occasionally 27. I forgot to check one year and missed the match on the 27th paycheck.
by rkhusky
Fri Jan 18, 2019 9:29 pm
Forum: Personal Finance (Not Investing)
Topic: [Wash sale concern - Are these stocks substantially identical?]
Replies: 49
Views: 1685

Re: [Wash sale concern - Are these stocks substantially identical?]

You shifted the argument from a 401K to an IRA. A 401K is company sponsored, and in the event that one is not a majority stockholder in one’s employer, the 401K accounts are not controlled by the employee. The employer controls the fund offerings, how the plan costs are allocated and so on. In my c...
by rkhusky
Fri Jan 18, 2019 9:14 pm
Forum: Investing - Help with Personal Investments
Topic: Roth 2050 Target Fund to Total Stock
Replies: 12
Views: 763

Re: Roth 2050 Target Fund to Total Stock

I'm 32 years old and have my Roth IRA at Vanguard in the 2050 Target Retirement Fund (VFIFX). Since the passing of our dear friend Jack this week, I have been thinking about how he did not endorse having international. Being fairly young with a long ways to go, I have also thought about not having ...
by rkhusky
Fri Jan 18, 2019 4:28 pm
Forum: Personal Finance (Not Investing)
Topic: [Wash sale concern - Are these stocks substantially identical?]
Replies: 49
Views: 1685

Re: [Wash sale concern - Are these stocks substantially identical?]

Acquiring . The 401K sale and purchase is not for your account, it is for your employer’s account. You do not have actual possession of (acquire) anything in your 401K. That is the difference. The IRS and tax court have ruled that a taxpayer acquires stocks and securities purchased through corporat...
by rkhusky
Fri Jan 18, 2019 1:38 pm
Forum: Personal Finance (Not Investing)
Topic: Yet another wash sale question - buy/sale accross retirement and taxable accounts
Replies: 5
Views: 368

Re: Yet another wash sale question - buy/sale accross retirement and taxable accounts

Would you be kind enough to point me to a thread with more detailed discussion? Here is a link to the pro arguments: https://www.bogleheads.org/forum/viewtopic.php?f=1&t=264203&p=4226175#p4226175. Prior post has the con arguments. You can find 26 U.S. Code § 1091 here: https://www.law.cornell.edu/u...
by rkhusky
Fri Jan 18, 2019 1:34 pm
Forum: Investing - Help with Personal Investments
Topic: Just missed a few days of gains rolling over 401K from Fidelity to Vanguard
Replies: 59
Views: 1625

Re: Just missed a few days of gains rolling over 401K from Fidelity to Vanguard

I really wish I had thought of this or done some research before I made the mistake. Oh well, lesson learned. Would it have been a mistake if the market had dropped and you were able to buy more shares than otherwise? Keep in mind that the expected value of a day out of the market is on the order o...
by rkhusky
Fri Jan 18, 2019 1:13 pm
Forum: Personal Finance (Not Investing)
Topic: Capital gains on house sale
Replies: 16
Views: 1221

Re: Capital gains on house sale

You only count improvements, not maintenance items.

If the cap gains are $79k and income is $20k, all the cap gains are at 0%. There is standard deduction of $24k, which means that income can be about $103k to still be in 12% bracket.

Need to fill out cap gain worksheet for details.
by rkhusky
Fri Jan 18, 2019 8:39 am
Forum: Personal Finance (Not Investing)
Topic: [Wash sale concern - Are these stocks substantially identical?]
Replies: 49
Views: 1685

Re: [Wash sale concern - Are these stocks substantially identical?]

Acquiring . The 401K sale and purchase is not for your account, it is for your employer’s account. You do not have actual possession of (acquire) anything in your 401K. That is the difference. The IRS and tax court have ruled that a taxpayer acquires stocks and securities purchased through corporat...
by rkhusky
Fri Jan 18, 2019 8:23 am
Forum: Personal Finance (Not Investing)
Topic: Capital gains on house sale
Replies: 16
Views: 1221

Re: Capital gains on house sale

Hi, I’m trying to understand the new tax rules on capital gains. If you make less than a certain amount of income, I saw the capital gains is 0%? Does that income count the profit in the capital gains itself? For instance, my parents are retired- mom collects 1100 monthly and dad $600 monthly (he’s...
by rkhusky
Thu Jan 17, 2019 10:02 pm
Forum: Personal Finance (Not Investing)
Topic: [Wash sale concern - Are these stocks substantially identical?]
Replies: 49
Views: 1685

Re: [Wash sale concern - Are these stocks substantially identical?]

I think the burden of proof is on those who believe it is a wash sale, under the legal doctrine that “everything that is not forbidden is legal”. I don't know if the IRS follows that doctrine. Even if they did, the law (26 U.S. Code § 1091) has a blanket prohibition on acquiring substantially ident...
by rkhusky
Thu Jan 17, 2019 9:46 pm
Forum: Personal Finance (Not Investing)
Topic: [Wash sale concern - Are these stocks substantially identical?]
Replies: 49
Views: 1685

Re: [Wash sale concern - Are these stocks substantially identical?]

FlyingHigh wrote:
Thu Jan 17, 2019 6:00 pm
It is interesting that Vanguard does not track transactions in a 401K regarding Wash Sale issues..
Vanguard (and probably most brokers) also don't report wash sales caused by purchases in IRA's or in your spouse's accounts either.
by rkhusky
Thu Jan 17, 2019 9:44 pm
Forum: Personal Finance (Not Investing)
Topic: [Wash sale concern - Are these stocks substantially identical?]
Replies: 49
Views: 1685

Re: [Wash sale concern - Are these stocks substantially identical?]

And like most my opinion is that except for IRA's and taxable accounts, all others are not included in wash sales (including 401k). The IRS has specifically stated that accounts in trusts and corporations that the taxpayer controls are included in wash sales, as are spouse's accounts. This is INCOR...
by rkhusky
Thu Jan 17, 2019 11:38 am
Forum: Investing - Theory, News & General
Topic: What Percentage of US Stocks is traded by Pros vs Public?
Replies: 4
Views: 542

Re: What Percentage of US Stocks is traded by Pros vs Public?

Wonder what percentage of the market is traded for short term gain versus long term gain? And how this might affect the stock valuation capability of the market?
by rkhusky
Thu Jan 17, 2019 9:41 am
Forum: Personal Finance (Not Investing)
Topic: [Wash sale concern - Are these stocks substantially identical?]
Replies: 49
Views: 1685

Re: [Wash sale concern - Are these stocks substantially identical?]

David Jay wrote:
Thu Jan 17, 2019 9:31 am
the transaction is not reported to any agency so no one can come after you.
If the IRS audits you and asks for your 401k transactions, I imagine that you would need to comply.

Likelihood of getting caught should not factor into how one fills out their tax return.
by rkhusky
Thu Jan 17, 2019 9:30 am
Forum: Personal Finance (Not Investing)
Topic: Yet another wash sale question - buy/sale accross retirement and taxable accounts
Replies: 5
Views: 368

Re: Yet another wash sale question - buy/sale accross retirement and taxable accounts

You have to sell for a loss in a taxable account and want to claim that loss on your taxes before the wash sale rule is even considered. But if that is true, buying substantially identical replacement shares in retirement accounts you control, or in trusts you control, or in corporations you control...
by rkhusky
Thu Jan 17, 2019 9:01 am
Forum: Personal Finance (Not Investing)
Topic: [Wash sale concern - Are these stocks substantially identical?]
Replies: 49
Views: 1685

Re: [Wash sale concern - Are these stocks substantially identical?]

Jack FFR1846 wrote:
Thu Jan 17, 2019 8:56 am
I expect they're only going to care if you sell VTI, then buy VTI.
How about if you sell VTI at Vanguard and buy VTI at Fidelity? You are unlikely to get caught doing that.
by rkhusky
Thu Jan 17, 2019 8:58 am
Forum: Personal Finance (Not Investing)
Topic: [Wash sale concern - Are these stocks substantially identical?]
Replies: 49
Views: 1685

Re: [Wash sale concern - Are these stocks substantially identical?]

Nate79 wrote:
Thu Jan 17, 2019 8:51 am
And like most my opinion is that except for IRA's and taxable accounts, all others are not included in wash sales (including 401k).
The IRS has specifically stated that accounts in trusts and corporations that the taxpayer controls are included in wash sales, as are spouse's accounts.
by rkhusky
Thu Jan 17, 2019 8:38 am
Forum: Personal Finance (Not Investing)
Topic: [Wash sale concern - Are these stocks substantially identical?]
Replies: 49
Views: 1685

Re: [Wash sale concern - Are these stocks substantially identical?]

Since there is no guidance from the IRS on the definition of "substantially identical" for mutual funds, it is all about personal comfort level. Knowing that the purpose of the wash sale rule is to require the taxpayer to change their economic position for 30 days in order to claim a loss on their t...
by rkhusky
Wed Jan 16, 2019 12:52 pm
Forum: Investing - Help with Personal Investments
Topic: TLH a la max12377 style with self directed 401k
Replies: 10
Views: 388

Re: TLH a la max12377 style with self directed 401k

The "damage" is already done as the purchase in the 401(k) has been made. I would not take it upon myself to declare the punitive wash sale at that point. The OP has other washes, so no extra learning involved. And the 401k wash is easier to keep track of. And it's probably small, so why take the r...
by rkhusky
Wed Jan 16, 2019 12:45 pm
Forum: Investing - Help with Personal Investments
Topic: 37% marginal tax rate --> does Roth 401k make sense?
Replies: 33
Views: 2185

Re: 37% marginal tax rate --> does Roth 401k make sense?

If you expect your marginal rate to be 37%+ in retirement, then Roth 401k makes sense. If it will be below 37%, Traditional 401k is the best (the further below, the better Traditional 401k looks).
by rkhusky
Wed Jan 16, 2019 10:11 am
Forum: Investing - Help with Personal Investments
Topic: Need tips!
Replies: 17
Views: 1760

Re: Need tips!

For my Roth IRA for the year I plan on investing $115.38 each week (is this smart?)and continue to contribute to my 401k thru work. The smallest amount I would contribute at one time is $1000. Why’s that? Any other opinions? Is it wrong to contribute a small amount. Weekly Not wrong, but I just don...
by rkhusky
Wed Jan 16, 2019 8:22 am
Forum: Investing - Help with Personal Investments
Topic: TLH a la max12377 style with self directed 401k
Replies: 10
Views: 388

Re: TLH a la max12377 style with self directed 401k

Thanks for the clarification. Somehow I seemed to have missed that point through all the previous discussions. Maybe just assumed IRA and retirement accounts (401k, 403b, etc...) were all included. Agree if it is not mentioned then no reason to count it. Good luck. See the referenced link above in ...
by rkhusky
Wed Jan 16, 2019 8:14 am
Forum: Investing - Help with Personal Investments
Topic: Need tips!
Replies: 17
Views: 1760

Re: Need tips!

Richard32 wrote:
Mon Jan 14, 2019 6:19 pm
For my Roth IRA for the year I plan on investing $115.38 each week (is this smart?)and continue to contribute to my 401k thru work.
The smallest amount I would contribute at one time is $1000.
by rkhusky
Wed Jan 16, 2019 8:03 am
Forum: Investing - Help with Personal Investments
Topic: VOO Dividends--How to avoid double tax when wanting to spend them?
Replies: 14
Views: 650

Re: VOO Dividends--How to avoid double tax when wanting to spend them?

I have a question regarding VOO and how the dividends are taxed in my taxable account. I know the dividends are reinvested automatically in the fund. So if the yield is 2.0% annually, it's not like the investor is getting 2.0% more shares annually like a stock DRIP plan, but instead the fund or sha...
by rkhusky
Tue Jan 15, 2019 8:13 am
Forum: Investing - Help with Personal Investments
Topic: TLH is called "Murky"
Replies: 17
Views: 2089

Re: TLH is called "Murky"

livesoft wrote:
Mon Jan 14, 2019 10:34 pm
Once again: You aren't gonna TLH on an average day. You are gonna TLH on a Worst Day because they are the best days to TLH on.
Since I don't have access to my home computer much of the day and I don't access retirement accounts on my phone, I will most likely TLH on average days.
by rkhusky
Tue Jan 15, 2019 8:07 am
Forum: Investing - Theory, News & General
Topic: rebalancing questions
Replies: 6
Views: 548

Re: rebalancing questions

about rebalancing Ive done research showing me that rebalancing once a year gives better results than rebalancing every month or every 3 months with every 6 months being about as good as once a year.. is this what you guys reccommend? OR.......should I rebalance when certain percentages are met? if...
by rkhusky
Mon Jan 14, 2019 9:35 pm
Forum: Investing - Help with Personal Investments
Topic: TLH a la max12377 style with self directed 401k
Replies: 10
Views: 388

Re: TLH a la max12377 style with self directed 401k

Yes, it is best not to use the same funds in your tax-advantaged accounts as in your taxable accounts. And the method above seems like a good way not to get locked into an unwanted fund in taxable. Of course, you will likely get stuck with some extra dividends in the taxable account, but that might ...