Search found 9169 matches

by rkhusky
Sun May 31, 2020 6:38 am
Forum: Personal Investments
Topic: Roth IRA for a minor child?
Replies: 21
Views: 1038

Re: Roth IRA for a minor child?

This guidance from the IRS calls babysitting and lawn mowing self-employment: https://www.irs.gov/pub/irs-utl/OC-Whateverystudentshouldknowaboutsummerjobsandtaxes.pdf Earnings you receive from self- employment – including jobs like babysitting and lawn mowing – are subject to income tax. If you have...
by rkhusky
Sat May 30, 2020 2:42 pm
Forum: Investing - Theory, News & General
Topic: What percent of value stocks are actually risky?
Replies: 6
Views: 552

Re: What percent of value stocks are actually risky?

Any site where you can sort the holdings on debt rating?
by rkhusky
Sat May 30, 2020 2:21 pm
Forum: Personal Investments
Topic: Roth IRA for a minor child?
Replies: 21
Views: 1038

Re: Roth IRA for a minor child?

There is some information here: https://www.bogleheads.org/wiki/Accounts_for_children 1. There are special rules when parents hire children through their business. Your parents may have not followed all the rules or perhaps rules were different back then. Odd jobs for neighbors count as taxable comp...
by rkhusky
Fri May 29, 2020 1:55 pm
Forum: Investing - Theory, News & General
Topic: Effect of being out of the market
Replies: 21
Views: 1538

Re: Effect of being out of the market

I used this example with regards to tax loss harvesting with a friend. It's an example of what can happen if you want to tax loss harvest, but instead of buying a similar/not identical fund, you choose to wait the 30 days to buy back the fund you sold (assume no dividends received 30 days before or...
by rkhusky
Fri May 29, 2020 1:45 pm
Forum: Investing - Theory, News & General
Topic: Effect of being out of the market
Replies: 21
Views: 1538

Re: Effect of being out of the market

Please bear with my ignorance ...I know I’m clueless..but how are the percentages above ...all less than 1%....indicative of really significant underperformance of market returns? I’m not trying to mitigate the mistake of pulling out...I’m trying to understand. They do not signify significant under...
by rkhusky
Fri May 29, 2020 12:18 pm
Forum: Investing - Theory, News & General
Topic: Effect of being out of the market
Replies: 21
Views: 1538

Re: Effect of being out of the market

I've seen a number of posts in the past of people going through all sorts of contortions so that their $10K or $20K is not out of the market for a couple of days.
by rkhusky
Fri May 29, 2020 11:54 am
Forum: Investing - Theory, News & General
Topic: Effect of being out of the market
Replies: 21
Views: 1538

Re: Effect of being out of the market

For completeness, for 2 days the mean is 0.08% and the median is 0.17%. For 3 days the mean is 0.13% and the median is 0.25%. These numbers are appropriate for when you are forced out of the market because of transit or transaction times, independent of market conditions (i.e. not the result of mark...
by rkhusky
Fri May 29, 2020 11:48 am
Forum: Investing - Theory, News & General
Topic: Effect of being out of the market
Replies: 21
Views: 1538

Re: Effect of being out of the market

Note that the reference posted in the other thread (https://www.wellsfargoadvisors.com/research-analysis/reports/coronavirus-impact/market-timing.htm) showed that missing the best X and worst X days was a net benefit. This would happen if the market tended to have larger sudden losses compared to su...
by rkhusky
Fri May 29, 2020 11:40 am
Forum: Investing - Theory, News & General
Topic: Effect of being out of the market
Replies: 21
Views: 1538

Re: Effect of being out of the market

Using daily returns from Vanguard Total Stock Market (VTSMX, 1992-2020, 7000+ samples), I computed overall returns for 5 and 10 random samples, repeated 100K times. The average return for 5 random samples was 0.22% and for 10 random samples was 0.42%. I also computed the average return for 5 consec...
by rkhusky
Fri May 29, 2020 11:37 am
Forum: Investing - Theory, News & General
Topic: Effect of being out of the market
Replies: 21
Views: 1538

Re: Effect of being out of the market

The more interesting question is, what happens if you choose samples of days soon after a big drop? The real question isn’t what happens if you leave the market for a random set of 5 days. It is what happens if you pull your funds out of the market for 3 months right after a 15% or 20% or 25% drop....
by rkhusky
Fri May 29, 2020 11:18 am
Forum: Investing - Theory, News & General
Topic: Effect of being out of the market
Replies: 21
Views: 1538

Re: Effect of being out of the market

I’m very math illiterate but the percentages you calculated don’t seem to me to represent “ massive underperformance”. Am I wrong? I’m worried about this too because I was out late March to mid April...about 25 days. What’s done is done but it’s good to know the full impact as a deterrent for behav...
by rkhusky
Fri May 29, 2020 11:07 am
Forum: Investing - Theory, News & General
Topic: Effect of being out of the market
Replies: 21
Views: 1538

Effect of being out of the market

In a recent thread (https://www.bogleheads.org/forum/viewtopic.php?f=10&t=257573&start=5700#p5281240) the subject came up again of whether people need to be concerned about being out of the market for a few days. My back-of-the-envelope calculation used the assumptions of the average market gain bei...
by rkhusky
Fri May 29, 2020 10:39 am
Forum: Personal Finance (Not Investing)
Topic: Is my college kid independent and eligible for Education Credits and Stimulus Check
Replies: 9
Views: 710

Re: Is my college kid independent and eligible for Education Credits and Stimulus Check

Wouldn’t 529 withdrawals be parental support? Re lumping them in with student loans and investment income in OP. From what I have read, the IRS hasn't made a definitive ruling on this. Some claim 529 belongs to the student since they are named on it and they are responsible for taxes if too much of...
by rkhusky
Fri May 29, 2020 6:57 am
Forum: Investing - Theory, News & General
Topic: U.S. stocks continue to soar!
Replies: 5725
Views: 489052

Re: U.S. stocks continue to soar!

Weeks like this I'm reminded of the sage advice that if you are out of the market just a handful of days, you can massively underperform due to the market's tendency to move in a large amounts over small periods of time. Not sure if this surge today will hold through close, but it's quite the sight...
by rkhusky
Thu May 28, 2020 4:44 pm
Forum: Investing - Theory, News & General
Topic: U.S. stocks continue to soar!
Replies: 5725
Views: 489052

Re: U.S. stocks continue to soar!

Weeks like this I'm reminded of the sage advice that if you are out of the market just a handful of days, you can massively underperform due to the market's tendency to move in a large amounts over small periods of time. Not sure if this surge today will hold through close, but it's quite the sight...
by rkhusky
Thu May 28, 2020 4:34 pm
Forum: Personal Finance (Not Investing)
Topic: Is my college kid independent and eligible for Education Credits and Stimulus Check
Replies: 9
Views: 710

Re: Is my college kid independent and eligible for Education Credits and Stimulus Check

Wouldn’t 529 withdrawals be parental support? Re lumping them in with student loans and investment income in OP.
by rkhusky
Thu May 28, 2020 4:21 pm
Forum: Personal Investments
Topic: 30 year investor - never understood Dividend hoopla
Replies: 20
Views: 1347

Re: 30 year investor - never understood Dividend hoopla

If the company can use their cash to increase their share price at greater than a 1:1 ratio, I would rather have them do it. Otherwise, I would rather they sent the cash to me.
by rkhusky
Thu May 28, 2020 3:27 pm
Forum: Investing - Theory, News & General
Topic: Why is the market soaring?
Replies: 35
Views: 4382

Re: Why is the market soaring?

Investors are realizing that business can go on, with small adjustments. That people will spend, given the opportunity. That the downturn was not a fundamental economic thing and that current signs are promising a quick recovery.
by rkhusky
Thu May 28, 2020 3:01 pm
Forum: Investing - Theory, News & General
Topic: U.S. stocks continue to soar!
Replies: 5725
Views: 489052

Re: U.S. stocks continue to soar!

Weeks like this I'm reminded of the sage advice that if you are out of the market just a handful of days, you can massively underperform due to the market's tendency to move in a large amounts over small periods of time. Not sure if this surge today will hold through close, but it's quite the sight...
by rkhusky
Thu May 28, 2020 11:33 am
Forum: Investing - Theory, News & General
Topic: Triggers for AA changes?
Replies: 15
Views: 864

Re: Triggers for AA changes?

Allowing for a tactical asset allocation in my IPS at what I, from learning about historic market conditions, perceive as relative extremes, wouldn´t have the aim (I hope I am being honest here to myself) to chase alpha, but to enforce the right behavior and taking out impulsive decision making. De...
by rkhusky
Thu May 28, 2020 8:27 am
Forum: Investing - Theory, News & General
Topic: Triggers for AA changes?
Replies: 15
Views: 864

Re: Triggers for AA changes?

I prefer continuous functions to step functions for the psychological reasons that nisiprius mentioned. If your portfolio was $1M+, would you really want to move hundreds of thousands of dollars based on crossing some threshold. Seems like you might end up with analysis paralysis or buyers/sellers r...
by rkhusky
Thu May 28, 2020 8:17 am
Forum: Personal Investments
Topic: Fidelity HSA - 2 fund Vanguard or 2 fund fidelity ZERO fee?
Replies: 19
Views: 1007

Re: Fidelity HSA - 2 fund Vanguard or 2 fund fidelity ZERO fee?

+1 for suggestions by snailderby and livesoft. Don't spend too much time on this because it won't matter much.
by rkhusky
Wed May 27, 2020 8:49 pm
Forum: Investing - Theory, News & General
Topic: 40m Unemployment Claims - I Don’t Understand Why Markets Seem To Not Care
Replies: 86
Views: 9568

Re: 40m Unemployment Claims - I Don’t Understand Why Markets Seem To Not Care

Everyone says stock markets are forward looking, I understand. But with 40 million unemployment claims over 2 months, why would the markets shrug that off. No economy in history has replaced 40m jobs even in a year’s time. What am I missing?! You answered it. Forward looking. And the market knows t...
by rkhusky
Wed May 27, 2020 3:08 pm
Forum: Personal Investments
Topic: If husband can do T-IRA, but acct says Roth, then...
Replies: 28
Views: 1295

Re: If husband can do T-IRA, but acct says Roth, then...

Note also that Roth conversions occur with income tax rates, not capital gain rates. So, 10%, 12%, 22%, etc. If rates go back to previous, like they are scheduled to in several years, they will be 10%, 15%, 25%, etc.
by rkhusky
Wed May 27, 2020 6:22 am
Forum: Personal Investments
Topic: growth+value=>s&p
Replies: 9
Views: 621

Re: growth+value=>s&p

In terms of performance, a 50/50 mix of Growth/Value (rebalanced annually, fixed inflation-adjusted monthly dollar contribution), has been slightly better than 500 Index, CAGR of 13.09% vs. 12.92%, TWRR of 6.48% vs 6.23%, MWRR of 8.00% vs 7.78%, over the last 20 years.
by rkhusky
Tue May 26, 2020 7:12 pm
Forum: Personal Investments
Topic: Any retirees get through Covid crisis without large cash reserve?
Replies: 63
Views: 4225

Re: Any retirees get through Covid crisis without large cash reserve?

I keep from 2-6 months of spending money in a MM account. Start with 6 months, spend down to 2 months, replenish and repeat.
by rkhusky
Tue May 26, 2020 6:44 pm
Forum: Personal Investments
Topic: Fidelity HSA - 2 fund Vanguard or 2 fund fidelity ZERO fee?
Replies: 19
Views: 1007

Re: Fidelity HSA - 2 fund Vanguard or 2 fund fidelity ZERO fee?

The zero fees don’t matter much since your balance will be small. 0.05% of $100K is $50. Do you plan to have $100K in your HSA?
by rkhusky
Tue May 26, 2020 5:46 pm
Forum: Personal Investments
Topic: 90% VTSAX?
Replies: 15
Views: 2055

Re: 90% VTSAX?

You could move a lot of your IRA's to 100% VTSAX. You could sell all the shares in taxable that have a loss (except for VTSAX shares) and buy VTSAX with the proceeds. Need to have specific ID for cost basis method and haven't sold anything via average cost basis yet. I would advise at least 20% in i...
by rkhusky
Tue May 26, 2020 9:37 am
Forum: Investing - Theory, News & General
Topic: New Morningstar Target Date Fund Rankings
Replies: 17
Views: 1370

Re: New Morningstar Target Date Fund Rankings

In fairness, you left off the sentences after that statement: Still, its straightforward and simple design remain perfectly suitable for anyone saving for retirement. It is a particularly attractive option for investors who aren’t able to access other series’ cheapest share classes. Its Investor sh...
by rkhusky
Tue May 26, 2020 9:35 am
Forum: Personal Investments
Topic: Vanguard target date funds outperforming VT/VTWAX - Why?
Replies: 11
Views: 788

Re: Vanguard target date funds outperforming VT/VTWAX - Why?

What were the 3 and 5 year returns 2 years ago. The events of the last 3 months have had a significant effect on the markets. Total World Stock ETF Market Price 1-yr 3-yr 5-yr 10-yr Since inception 06/24/2008 -6.20% 3.91% 4.30% 7.07% 5.08% Target Retirement 2050 1-yr 3-yr 5-yr 10-yr Since inception...
by rkhusky
Tue May 26, 2020 9:14 am
Forum: Personal Investments
Topic: Vanguard target date funds outperforming VT/VTWAX - Why?
Replies: 11
Views: 788

Re: Vanguard target date funds outperforming VT/VTWAX - Why?

What were the 3 and 5 year returns 2 years ago. The events of the last 3 months have had a significant effect on the markets.
by rkhusky
Mon May 25, 2020 8:55 pm
Forum: Investing - Theory, News & General
Topic: New Morningstar Target Date Fund Rankings
Replies: 17
Views: 1370

Re: New Morningstar Target Date Fund Rankings

I’m surprised the J.P. Morgan tr made the top of the list. Which indicates the Morningstar analysis is garbage. JPMorgan SmartRetirement Blend is built from 19 funds and has a 0.54% ER (Gross expense of 0.89%). Their 2020 fund has 33% turnover, while Vanguard TR 2020 has 13% turnover. Here is why t...
by rkhusky
Mon May 25, 2020 8:34 pm
Forum: Personal Investments
Topic: Roth conversion
Replies: 8
Views: 935

Re: Roth conversion

The amount you contributed to the Roth will be your basis. It only matters if you want to withdraw before age 59.5. In that case, you will need to be able to separate contributions from earnings. There are penalties for withdrawing earnings too soon. After age 59.5, everything is tax and penalty fre...
by rkhusky
Mon May 25, 2020 8:32 pm
Forum: Personal Investments
Topic: Roth IRA for children
Replies: 39
Views: 2843

Re: Roth IRA for children

Payment for household chores does not qualify for Roth IRA contributions for your child. Nor do you have to pay income tax, SS, UI, L&I, etc. The child does chores because he is a member of the family. Any compensation is a gift. I have a UTMA/UGMA for my children, I figured this was the best metho...
by rkhusky
Mon May 25, 2020 2:36 pm
Forum: Investing - Theory, News & General
Topic: Vanguard reviews “commodities futures” for inclusion in Target Date Retirement Funds
Replies: 32
Views: 2915

Re: Vanguard reviews “commodities futures” for inclusion in Target Date Retirement Funds

Vanguard’s changes to their TR and LS funds have been modest and made sense and didn’t increase costs. If they reverse any of the changes, I will call it tinkering.

They are a far far cry from some companies’ TDF’s that are comprised of 15 truly active funds with ER’s over 0.5%.
by rkhusky
Mon May 25, 2020 12:29 pm
Forum: Investing - Theory, News & General
Topic: New Morningstar Target Date Fund Rankings
Replies: 17
Views: 1370

Re: New Morningstar Target Date Fund Rankings

Morningstar obviously doesn’t use the same metrics that I would - cost, simplicity, and diversity. I shy away from funds that have more than a half-dozen components, ER’s > 0.20%, and don’t include total US, total international, total bond equivalents.
by rkhusky
Mon May 25, 2020 10:13 am
Forum: Personal Investments
Topic: SEPP calculation - Fixed annuitization Method - annuity factor ?
Replies: 7
Views: 362

Re: SEPP calculation - Fixed annuitization Method - annuity factor ?

JoMoney wrote:
Mon May 25, 2020 9:17 am
... if I desired a lower amount I can create that by just using the amortization method and lowering the interest rate.
Or putting less in the SEPP.
by rkhusky
Mon May 25, 2020 10:01 am
Forum: Personal Investments
Topic: How do you retire early if your money is tied up in tax deferred?
Replies: 26
Views: 3585

Re: How do you retire early if your money is tied up in tax deferred?

what if you have it mostly in t401k and not tIRA? Roll the 401k into an IRA? Or roll only some of it into a tIRA, if there is some reason why you prefer the 401K to an IRA. You even may want to have multiple tIRA’s, because you may not want to lock up all your tax-deferred money in a SEPP. Rule of ...
by rkhusky
Mon May 25, 2020 7:32 am
Forum: Investing - Theory, News & General
Topic: What are specific mechanics for V to rebalance TRF
Replies: 3
Views: 256

Re: What are specific mechanics for V to rebalance TRF

Vanguard does not reveal specifically how or when they rebalance or adjust their glide paths. They do this to prevent front running and for proprietary reasons. They probably attempt to rebalance daily using incoming and outgoing money. In this post, someone claimed to have called Vanguard to ask ab...
by rkhusky
Mon May 25, 2020 7:26 am
Forum: Personal Investments
Topic: Can I open a Roth IRA
Replies: 9
Views: 561

Re: Can I open a Roth IRA

I am aware that I have to file taxes married filing jointly in order to contribute to a roth ira. This year we did married filing seperately. Can I open one now as long as I file jointly next year or do I have to wait? Presumably you do not have taxable compensation and would be contributing throug...
by rkhusky
Mon May 25, 2020 7:16 am
Forum: Personal Investments
Topic: FL 529 best for 100% US total stock market?
Replies: 6
Views: 499

Re: FL 529 best for 100% US total stock market?

If all you want is US stocks then the FL plan looks cheap (the MM is also cheap at 0.04%), but you will have to keep an eye on the administration fee, which is currently 0%. They can probably increase that at will. Don't get swayed too much by the low fee, because it's not as important as for a reti...
by rkhusky
Sun May 24, 2020 7:40 pm
Forum: Personal Finance (Not Investing)
Topic: Something Fishy Here?? [CARES payment received via prepaid Visa]
Replies: 66
Views: 6642

Re: Something Fishy Here?? [CARES payment received via prepaid Visa]

birnhamwood wrote:
Sun May 24, 2020 6:16 pm
My brother has more income than I do and and he and wife got $1400 back whilst DW and I got only $370.

What the hey!

Thanks. I'm the OP.
Any kids under 17?
by rkhusky
Sun May 24, 2020 7:32 pm
Forum: Personal Investments
Topic: Can I open a Roth IRA
Replies: 9
Views: 561

Re: Can I open a Roth IRA

I am aware that I have to file taxes married filing jointly in order to contribute to a roth ira. This year we did married filing seperately. Can I open one now as long as I file jointly next year or do I have to wait? Presumably you do not have taxable compensation and would be contributing throug...
by rkhusky
Sun May 24, 2020 6:25 pm
Forum: Personal Consumer Issues
Topic: If Jeep has such poor reliability, how come they are everywhere?
Replies: 155
Views: 11477

Re: If Jeep has such poor reliability, how come they are everywhere?

CULater wrote:
Sun May 24, 2020 1:18 pm
So there's a Jeep cult like there is a Subaru cult?
And a Toyota/Honda cult.
by rkhusky
Sun May 24, 2020 6:21 pm
Forum: Personal Finance (Not Investing)
Topic: How often do you change passwords on your investment accounts?
Replies: 42
Views: 2660

Re: How often do you change passwords on your investment accounts?

I keep a file with passwords and date changed. For important sites I change once a year or so - whenever I happen to notice that the date is more than a year.
by rkhusky
Sun May 24, 2020 3:49 pm
Forum: Personal Consumer Issues
Topic: If Jeep has such poor reliability, how come they are everywhere?
Replies: 155
Views: 11477

Re: If Jeep has such poor reliability, how come they are everywhere?

Is the reliability bad in absolute terms, or only in relation to others? Similar to how an ER of 0.05% looks compared to 0.01%, 5x worse, but $40/year.
by rkhusky
Sun May 24, 2020 1:20 pm
Forum: Personal Investments
Topic: Roth IRA for children
Replies: 39
Views: 2843

Re: Roth IRA for children

Was wondering about this yesterday. Wife starting her own business. Could we pay the kids to use there photos on the website? Its probably nothing significant, but maybe something to start a Roth IRA for each? $1000 each one time for there likeness? I would check the going rate for such photos, rat...
by rkhusky
Sun May 24, 2020 1:17 pm
Forum: Personal Finance (Not Investing)
Topic: Two kids, how to divide 529 allocation?
Replies: 11
Views: 1439

Re: Two kids, how to divide 529 allocation?

We funded each child the same each year, up to the max total to get our state tax deduction.
by rkhusky
Sun May 24, 2020 7:15 am
Forum: Personal Consumer Issues
Topic: Warning: Virginia State Inspection
Replies: 38
Views: 3738

Re: Warning: Virginia State Inspection

Our state used to have inspections, but discovered that they didn't have any benefit, so they scrapped the law.
by rkhusky
Sun May 24, 2020 7:12 am
Forum: Personal Investments
Topic: Asset Allocation Dilemma – Contradicting Historical Data
Replies: 18
Views: 1210

Re: Asset Allocation Dilemma – Contradicting Historical Data

No one can tell you what the right AA is for you. Or which will do the best in the future.