Search found 5688 matches

by rkhusky
Sat Nov 17, 2018 8:48 am
Forum: Investing - Help with Personal Investments
Topic: Please critique my TLH plan
Replies: 7
Views: 536

Re: Please critique my TLH plan

If I was to exchange Vanguard Intermediate-Term Tax-Exempt VWIUX to limited term TE (is this VMLTX?) should I only sell the lots bought more that 6 months ago? No need. Dividends are declared daily in those funds and so are exempt from the 6-month rule. Is the interest form VTIAX in roth IRA and VT...
by rkhusky
Sat Nov 17, 2018 8:42 am
Forum: Investing - Help with Personal Investments
Topic: Please critique my TLH plan
Replies: 7
Views: 536

Re: Please critique my TLH plan

please find IRS literature stating 401ks are involved. 26 U.S. Code § 1091 (a) DISALLOWANCE OF LOSS DEDUCTION In the case of any loss claimed to have been sustained from any sale or other disposition of shares of stock or securities where it appears that, within a period beginning 30 days before th...
by rkhusky
Sat Nov 17, 2018 8:24 am
Forum: Investing - Help with Personal Investments
Topic: Please critique my TLH plan
Replies: 7
Views: 536

Re: Please critique my TLH plan

Employer plans are not included in wash sale rules. That is not true. The IRS has specifically said that acquiring a substantially identical replacement within +-30 days of a deductible loss is a wash sale. The IRS has also specifically said that IRA's are included in wash sale rules and that the l...
by rkhusky
Sat Nov 17, 2018 8:17 am
Forum: Investing - Help with Personal Investments
Topic: Rebalancing an account with both Mutual Funds and ETFs
Replies: 4
Views: 347

Re: Rebalancing an account with both Mutual Funds and ETFs

So far I've always used mutual funds, and rebalancing has simply been a matter of setting up 'buy' and 'sell' orders that are executed simultaneously at the end of the trading day. They are not really executed simultaneously and assuming so can cause problems in certain circumstances. The are execu...
by rkhusky
Sat Nov 17, 2018 7:57 am
Forum: Investing - Theory, News & General
Topic: If riskier than US, why doesn't international outperform?
Replies: 61
Views: 4087

Re: If riskier than US, why doesn't international outperform?

Garland - I want to personally thank you for your insightful posts. I used to be solidly in the "factor tilting/DFA/SCV" camp but have recently come back around to owning TSM as cheaply as possible. This last post sums it up best - the market is still dumbfounding to us and theory after theory do n...
by rkhusky
Sat Nov 17, 2018 7:44 am
Forum: Investing - Help with Personal Investments
Topic: LOST OVER $400 on CDs in 2 Weeks!
Replies: 19
Views: 2454

Re: LOST OVER $400 on CDs in 2 Weeks!

So I setup a Vanguard IRA and rolled over prior employer 401K funds to Vanguard. I bought a couple 10 year FDIC insured CDs and have somehow lost hundreds of dollars. Can someone explain how this could happen?? I didn't think you could lose money on CDs. See the Brokered CDs section of https://www....
by rkhusky
Fri Nov 16, 2018 10:53 pm
Forum: Investing - Help with Personal Investments
Topic: Tax lose harvesting bond funds?
Replies: 5
Views: 408

Re: Tax lose harvesting bond funds?

Watch out for the need to reduce your losses by tax exempt dividends if held less than six months. Thank you for posting this. I didn’t know this, and will Google it tomorrow. I love this forum. Does this apply to tax-exempt bond funds that pay monthly interest? Not if dividends are accrued daily l...
by rkhusky
Fri Nov 16, 2018 5:36 pm
Forum: Investing - Theory, News & General
Topic: Alpha Architect: Factor Investing Fact Check: Are Value And Momentum Dead?
Replies: 27
Views: 1606

Re: Alpha Architect: Factor Investing Fact Check: Are Value And Momentum Dead?

No, the S&P 500 is not "a bet on the mega cap growth section of the market." It's just a bet on the market , period. (They muddy the waters by talking about "the S&P 500," rather than the total market index most Bogleheads probably use--but since the S&P 500 constitutes 80% of the market, there's a...
by rkhusky
Fri Nov 16, 2018 3:01 pm
Forum: Investing - Help with Personal Investments
Topic: 401K Fund advice
Replies: 5
Views: 277

Re: 401K Fund advice

The expenses on these funds are fairly high and my though was to just invest in the lowest cost funds (RLBGX and PSIFX). RLBGX looks to be a 60/40 balanced fund with large cap stocks. It has about 130 stock holdings, which is a little light. The bonds are investment grade, well diversified, sort of...
by rkhusky
Fri Nov 16, 2018 8:56 am
Forum: Investing - Theory, News & General
Topic: If riskier than US, why doesn't international outperform?
Replies: 61
Views: 4087

Re: If riskier than US, why doesn't international outperform?

The way the statement should be framed is that "investors should demand more return for taking more risk". This is quite different from "investors will get more return for taking more risk". If investors find that the return of an asset class is not sufficient for the level of risk taken, they shoul...
by rkhusky
Fri Nov 16, 2018 8:06 am
Forum: Investing - Help with Personal Investments
Topic: Question about Rebalancing Asset Allocation
Replies: 9
Views: 776

Re: Question about Rebalancing Asset Allocation

So this may be a dumb question for this forum since market timing and prognostication is frowned upon. Let's say 2008-2009 repeats itself (or something). Stocks decline by 50% from their current values. Would it be wise to reallocate in a Roth account to a much higher equity position if there were ...
by rkhusky
Fri Nov 16, 2018 7:46 am
Forum: Investing - Theory, News & General
Topic: Why don't I read about this strategy more? [12-month moving average, momentum]
Replies: 84
Views: 11272

Re: Why don't I read about this strategy more? It seems reasonable and pretty straight forward.

Driving a car by what you can see in the rear-view mirror is quite dangerous. Great analogy! Active investing is more game theory than physics. Simple formulas for predicting the future of stocks don't work when there are intelligent opponents that have orders of magnitude more computing power and ...
by rkhusky
Thu Nov 15, 2018 8:23 am
Forum: Investing - Help with Personal Investments
Topic: Satisfied with 3% Returns for the last 10 years of working?
Replies: 13
Views: 2109

Re: Satisfied with 3% Returns for the last 10 years of working?

My question to the group is, are there others that go ultra conservative at 10 years prior to retirement because they just can't stomach any loss? We have options to put funds into a guaranteed account in the 457 and 403b, then CDs in the rollover IRA. The 401k provides Fidelity US Bond Index which...
by rkhusky
Wed Nov 14, 2018 1:27 pm
Forum: Investing - Help with Personal Investments
Topic: Vanguard - Cost basis not ACTUALLY switching to SpecID?
Replies: 9
Views: 958

Re: Vanguard - Cost basis not ACTUALLY switching to SpecID?

stilts1007 wrote:
Wed Nov 14, 2018 9:35 am
UPDATE:
Don't know if it was the email I sent (I never got a reply from anyone) or just a couple more days of waiting but the cost basis is fixed now on all 5 of my funds. Hooray!
Good. It's nice to hear when problems are fixed in a timely manner.
by rkhusky
Wed Nov 14, 2018 11:36 am
Forum: Investing - Theory, News & General
Topic: "What If You Retire At a Stock Market Peak?" - by Ben Carlson
Replies: 49
Views: 5818

Re: "What If You Retire At a Stock Market Peak?" - by Ben Carlson

Thanks. I like how in one of the links it basically said a 60:40 stock/bond portfolio has 90% chance of not running out of money with 4% withdrawal rate. That is a bit misleading. More accurately: In the past, 90% of the time periods reviewed did not run out of money with a 4% withdrawal rate and a...
by rkhusky
Wed Nov 14, 2018 11:33 am
Forum: Investing - Theory, News & General
Topic: Portability of Fidelity ZERO
Replies: 22
Views: 2341

Re: Portability of Fidelity ZERO

cheezit wrote:
Wed Nov 14, 2018 10:06 am
Regardless of restrictions on purchase, once you own the shares, could the mutual fund company compel you to forfeit them for any reason? If they can, it seems like you don't really own them even while you remain their customer.
Seems like I saw this somewhere in the prospectus.
by rkhusky
Wed Nov 14, 2018 11:31 am
Forum: Personal Finance (Not Investing)
Topic: Interested in filing my own taxes
Replies: 9
Views: 909

Re: Interested in filing my own taxes

What tax forms are needed for 2020 for the Roth IRA, if any? Can we claim any of the daycare expenses that were not paid with by the DCFSA? This is our first year with a child, what credits do we apply for knowing this? No tax forms for Roth IRA. No, if taking standard deduction. See Form 2241. Chi...
by rkhusky
Wed Nov 14, 2018 8:33 am
Forum: Investing - Theory, News & General
Topic: "What If You Retire At a Stock Market Peak?" - by Ben Carlson
Replies: 49
Views: 5818

Re: "What If You Retire At a Stock Market Peak?" - by Ben Carlson

is 60:40 stock:bond a good general rule of thumb throughout all of retirement? Everyone's situation and temperament is different. Some go 100/0, some go 0/100. Vanguard's Target Retirement funds eventually transition to the Target Retirement Income fund, which is 30/70. Vanguard's LifeStrategy Inco...
by rkhusky
Wed Nov 14, 2018 8:14 am
Forum: Personal Finance (Not Investing)
Topic: Confused with TLH aftereffects in Vanguard
Replies: 2
Views: 374

Re: Confused with TLH aftereffects in Vanguard

Most Vanguard funds have restrictions that prevent buying a fund for 30 days after you sell it (there is no similar restriction on selling after buying or selling after selling or buying after buying). This is to prevent churning. But the restriction only applies to repurchasing via online or phone....
by rkhusky
Wed Nov 14, 2018 8:04 am
Forum: Investing - Theory, News & General
Topic: "What If You Retire At a Stock Market Peak?" - by Ben Carlson
Replies: 49
Views: 5818

Re: "What If You Retire At a Stock Market Peak?" - by Ben Carlson

Interesting read. But what does the nominal look like? Obviously 4% of 1MM is 40k, but if you can't live on 20K per year, and you're pulling 4% of 500k after a market crash, how does that look? Wouldn't you be pulling it from your bond allocation since, after stocks have tanked, it is overweight? I...
by rkhusky
Wed Nov 14, 2018 7:37 am
Forum: Investing - Theory, News & General
Topic: Portability of Fidelity ZERO
Replies: 22
Views: 2341

Re: Portability of Fidelity ZERO

The Fidelity ZERO funds must be held at Fidelity. See the Summary Prospectus: Shares of the fund are available only to individual retail investors who purchase their shares through a Fidelity brokerage account, including retail non-retirement accounts, retail retirement accounts (traditional, Roth a...
by rkhusky
Tue Nov 13, 2018 9:25 pm
Forum: Personal Finance (Not Investing)
Topic: 2018 Tax Time is upon us
Replies: 13
Views: 2468

Re: 2018 Tax Time is upon us

It is a wash for me. I lose Sched A, but gain Sched 1.
by rkhusky
Tue Nov 13, 2018 9:05 pm
Forum: Investing - Help with Personal Investments
Topic: Mutual Fund cost basis
Replies: 4
Views: 353

Re: Mutual Fund cost basis

Have you bought any shares of VTSAX at either ME or Vanguard since the transfer?

Take a look at the transfer records at ME and Vanguard to see what they say.
by rkhusky
Tue Nov 13, 2018 7:24 pm
Forum: Investing - Help with Personal Investments
Topic: MAJOR Vanguard Screwups in 403(b) Rollover
Replies: 5
Views: 936

Re: MAJOR Vanguard Screwups in 403(b) Rollover

That would risk a possible loss of $30k as the two or more steps would take several days. I've seen a number of posts where people seem paranoid about being out of the market for a few days. It isn't really that big of a deal. If you assume that the stock market gains about 5% a year, then each day...
by rkhusky
Tue Nov 13, 2018 3:50 pm
Forum: Personal Consumer Issues
Topic: Best Gutter Guard?
Replies: 15
Views: 1141

Re: Best Gutter Guard?

In fact, the local gutter company that I use recommends "Rain Flow Total Gutter Protection," which appears to put some kind of sponge-like material in the gutter that allows water to enter the gutter, but lets leaves blow off rather than be collected in the gutter: http://www.tollinswindowcleaning....
by rkhusky
Tue Nov 13, 2018 3:39 pm
Forum: Investing - Theory, News & General
Topic: A reminder: Stay away from AQR
Replies: 170
Views: 12423

Re: A reminder: Stay away from

Perhaps you're conceiving of "concentrated" and "diversified" as antonyms, and this conception might getting in the way of understanding the point stlutz has made. The investment he described (spreading risk across three factors instead of just one) is exactly what you call a "diversified bet": put...
by rkhusky
Tue Nov 13, 2018 10:29 am
Forum: Investing - Theory, News & General
Topic: A reminder: Stay away from AQR
Replies: 170
Views: 12423

Re: A reminder: Stay away from

Perhaps you're conceiving of "concentrated" and "diversified" as antonyms, and this conception might getting in the way of understanding the point stlutz has made. The investment he described (spreading risk across three factors instead of just one) is exactly what you call a "diversified bet": put...
by rkhusky
Tue Nov 13, 2018 10:28 am
Forum: Investing - Theory, News & General
Topic: A reminder: Stay away from AQR
Replies: 170
Views: 12423

Re: A reminder: Stay away from AQR

The problem is not that I don't understand the math in principle. The problem is that I am skeptical about conditions a, b, c, and d being met. I like to separate FF modeling, which is used to describe portfolio returns, from the efforts to profit from said modeling. While the FF model is entirely ...
by rkhusky
Tue Nov 13, 2018 8:17 am
Forum: Investing - Theory, News & General
Topic: A reminder: Stay away from AQR
Replies: 170
Views: 12423

Re: A reminder: Stay away from

If it is about return then if you think that stocks will beat bonds, small cap will beat large caps and value will best growth, then small cap value allows you to place all three bets at once--a diversified bet. If we use an adjective to describe the bet, I would call that a concentrated bet. A div...
by rkhusky
Tue Nov 13, 2018 8:09 am
Forum: Investing - Theory, News & General
Topic: A reminder: Stay away from AQR
Replies: 170
Views: 12423

Re: A reminder: Stay away from

More to the point, although your intuition might be that this "pot of stocks" you described MUST be less diversified than a portfolio that contains a total stock market fund your intuition would mislead you. Whether this pot of stocks portfolio is more or less diversified than a total stock market ...
by rkhusky
Mon Nov 12, 2018 9:23 pm
Forum: Investing - Theory, News & General
Topic: A reminder: Stay away from AQR
Replies: 170
Views: 12423

Re: A reminder: Stay away from

I am talking about concentration in stock-characteristic space, which could include factor space (e.g. the 4-dimensional space comprising size, style, quality and momentum). If one is investing in only a small volume of stock-characteristic space, then one has a more concentrated and less diverse p...
by rkhusky
Mon Nov 12, 2018 9:00 pm
Forum: Investing - Theory, News & General
Topic: A reminder: Stay away from AQR
Replies: 170
Views: 12423

Re: A reminder: Stay away from

I am talking about concentration in stock-characteristic space, which could include factor space (e.g. the 4-dimensional space comprising size, style, quality and momentum). If one is investing in only a small volume of stock-characteristic space, then one has a more concentrated and less diverse p...
by rkhusky
Mon Nov 12, 2018 8:41 pm
Forum: Investing - Theory, News & General
Topic: Vanguard Year-End distribution estimates
Replies: 34
Views: 1307

Re: Vanguard 2018 Preliminary capital gains estimates.

Looks like the CG winner is Mid Cap Growth with a 12.67% cap gain rate. Wouldn't want that in my taxable account.
by rkhusky
Mon Nov 12, 2018 6:07 pm
Forum: Personal Finance (Not Investing)
Topic: Withdrawal options in retirement
Replies: 4
Views: 661

Re: Withdrawal options in retirement

Who has the larger SS benefit and what is the ratio of benefits?
by rkhusky
Mon Nov 12, 2018 6:03 pm
Forum: Investing - Theory, News & General
Topic: A reminder: Stay away from AQR
Replies: 170
Views: 12423

Re: A reminder: Stay away from

Look, I have no doubt that there exists a definition for "concentration" that includes "reduce in number. Such a definition (if "number" refers to the number of assets) is irrelevant to the concept of portfolio diversification because the NUMBER of stocks in a portfolio has no direct bearing on its...
by rkhusky
Mon Nov 12, 2018 9:56 am
Forum: Personal Finance (Not Investing)
Topic: why so few 50/50 balanced funds?
Replies: 21
Views: 2624

Re: why so few 50/50 balanced funds?

Vanguard seems to prefer 60/40 or 40/60 funds. You could choose two of those to get to 50/50 (Wellington/Wellesley or LifeStrategy Moderate/Conservative).
by rkhusky
Mon Nov 12, 2018 8:22 am
Forum: Investing - Theory, News & General
Topic: A reminder: Stay away from AQR
Replies: 170
Views: 12423

Re: A reminder: Stay away from

If you only invest in stocks that are small, value, high momentum, high quality, and low volatility, this is not investing in just a single factor, but multi-factors. Wow. Find me THAT fund. A few seconds on Google found LRGF, which targets four factors - size, value, momentum and quality. So, assu...
by rkhusky
Mon Nov 12, 2018 7:37 am
Forum: Investing - Help with Personal Investments
Topic: Roth vs. Traditional for low tax bracket
Replies: 10
Views: 981

Re: Roth vs. Traditional for low tax bracket

If you are in the 12% bracket now and end up with a 12% marginal rate in retirement, then Roth and Traditional are the same (note that taxation of SS makes the tax rate calculation more complex). However, if you are maxing your TSP and IRA for you and also an IRA for your wife, then Roth has a small...
by rkhusky
Sat Nov 10, 2018 5:51 pm
Forum: Investing - Theory, News & General
Topic: A reminder: Stay away from AQR
Replies: 170
Views: 12423

Re: A reminder: Stay away from

Your position is that since value has additional risk, that concentrating your holdings in equities with that characteristic will diversify your portfolio. My position is that holding stocks that both have and don't have that characteristic is more diversified. The phrase "concentrating your holdin...
by rkhusky
Sat Nov 10, 2018 5:31 pm
Forum: Investing - Help with Personal Investments
Topic: Vanguard Transactions & Cost Basis Discrepancies.
Replies: 22
Views: 1856

Re: Vanguard Transactions & Cost Basis Discrepancies.

You might notice it if you were expecting to tax loss harvest and went to sell specific shares and noticed that all the lots had the same price. If you aren't into tax loss harvesting and just looking to sell some shares, then you would probably not think to look. And it probably wouldn't matter muc...
by rkhusky
Sat Nov 10, 2018 5:23 pm
Forum: Investing - Help with Personal Investments
Topic: Vanguard - Cost basis not ACTUALLY switching to SpecID?
Replies: 9
Views: 958

Re: Vanguard - Cost basis not ACTUALLY switching to SpecID?

If you sold any shares in any of the funds when it was listed as average cost basis, then all shares will be changed to have the same cost basis and Vanguard will list that as the basis. Any purchases made after the switch to Spec ID will list the specific cost basis on those newly purchased shares....
by rkhusky
Sat Nov 10, 2018 9:21 am
Forum: Investing - Theory, News & General
Topic: A reminder: Stay away from AQR
Replies: 170
Views: 12423

Re: A reminder: Stay away from AQR

Your position is that since value has additional risk, that concentrating your holdings in equities with that characteristic will diversify your portfolio. My position is that holding stocks that both have and don't have that characteristic is more diversified. The phrase "concentrating your holdin...
by rkhusky
Sat Nov 10, 2018 8:33 am
Forum: Investing - Theory, News & General
Topic: Vanguard closure last week
Replies: 21
Views: 4680

Re: Vanguard closure last week

RickBoglehead wrote:
Fri Nov 09, 2018 4:49 pm
I don't recall giving the Philly Inquirer permission to quote me... :moneybag :moneybag :moneybag :moneybag
Once you put something on a public forum, they probably don't need permission.
by rkhusky
Fri Nov 09, 2018 8:53 pm
Forum: Investing - Theory, News & General
Topic: A reminder: Stay away from AQR
Replies: 170
Views: 12423

Re: A reminder: Stay away from AQR

I'm not sure this thread is the right place for a tutorial on the basics of multi factor asset pricing models, but a total stock market fund isn't exposed to "thousands" of independent sources of risk. It's exposed to one: market beta. That's just a tautology. Market beta is defined in terms of the...
by rkhusky
Fri Nov 09, 2018 7:40 pm
Forum: Investing - Theory, News & General
Topic: A reminder: Stay away from AQR
Replies: 170
Views: 12423

Re: A reminder: Stay away from AQR

Each stock is a source of return and each stock has its own risk. The total US market has thousands of sources of return and thousands of sources of risk. I can understand how one might think that is the way it works, but it’s not at all accurate. Really? Stock market return doesn't come from stock...
by rkhusky
Fri Nov 09, 2018 7:32 pm
Forum: Personal Finance (Not Investing)
Topic: Penfed Rewards Card - Gas purchase rewards question
Replies: 21
Views: 1120

Re: Penfed Rewards Card - Gas purchase rewards question

MikeG62 wrote:
Fri Nov 09, 2018 7:25 pm
Like you, I was told it had to be at least $1,000 so I keep renewing the CD. Current one expires in Feb 2019. I plan to call and ask if I can maintain the higher reward without the CD.
You could open a HEL or get an auto loan as well.
by rkhusky
Fri Nov 09, 2018 5:31 pm
Forum: Investing - Theory, News & General
Topic: A reminder: Stay away from AQR
Replies: 170
Views: 12423

Re: A reminder: Stay away from AQR

To that end, diversification is measured NOT by the number of stocks contained in the portfolio but rather by the number of independent (i.e. uncorrelated) sources of risk in the portfolio. Right, a pot of stocks that each have the same set of characteristics - with each characteristic adding to th...
by rkhusky
Fri Nov 09, 2018 5:10 pm
Forum: Investing - Help with Personal Investments
Topic: VIG (and SCHD etc) [tilting towards dividend stocks]
Replies: 6
Views: 512

Re: VIG (and SCHD etc) [tilting towards dividend stocks]

Regardless of if that's the best strategy or not (as it depends a lot individual desires, tolerance etc), my question is this. What is the point of this "dividend growth strategy"? Why would anyone want to buy VIG? Why not just buy VOO? If VIG offers something over VOO, then I am missing it, and I ...
by rkhusky
Fri Nov 09, 2018 12:13 pm
Forum: Investing - Help with Personal Investments
Topic: Early Retirement and Asset Allocation
Replies: 20
Views: 1964

Re: Early Retirement and Asset Allocation

I did not panic and sell a thing in 2008. In fact I took out a small home equity loan and added to positions.I see your sequencing risk point, however the portfolio is built to yield 5% which is a little more than my 4% WR. Individual companies may cut dividend's but most of mine are funds and even...