Search found 5195 matches

by rkhusky
Thu Jul 19, 2018 12:28 pm
Forum: Investing - Help with Personal Investments
Topic: Heresy: Is It Worth Converting tIRAs to Roth?
Replies: 46
Views: 4172

Re: Heresy: Is It Worth Converting tIRAs to Roth?

tibbitts wrote:
Tue Jul 17, 2018 8:27 pm
rkhusky wrote:
Tue Jul 17, 2018 7:53 pm
I wouldn’t convert in 24% bracket if you will be in that bracket or higher in retirement.
Did you mean higher or lower? I might convert if I knew future taxes would be at a higher rate.
I meant 24% or lower. Thanks for the correction.
by rkhusky
Thu Jul 19, 2018 12:25 pm
Forum: Investing - Help with Personal Investments
Topic: Cost Basis With Fractional Shares In Mutual Funds
Replies: 3
Views: 206

Re: Cost Basis With Fractional Shares In Mutual Funds

You could reduce the number of transactions by sending money to your savings account and contributing monthly. And you could send dividends and cap gains to a money market and move to your funds on a monthly or quarterly basis.
by rkhusky
Tue Jul 17, 2018 7:53 pm
Forum: Investing - Help with Personal Investments
Topic: Heresy: Is It Worth Converting tIRAs to Roth?
Replies: 46
Views: 4172

Re: Heresy: Is It Worth Converting tIRAs to Roth?

I wouldn’t convert in 24% bracket if you will be in that bracket or higher in retirement.
by rkhusky
Sun Jul 15, 2018 10:38 am
Forum: Investing - Theory, News & General
Topic: How to determine weights within portfolio
Replies: 29
Views: 1399

Re: How to determine weights within portfolio

As mentioned, I've inherited these asset classes from a prior advisor
Why do you need to maintain these individual asset classes? You are unable to sell?
by rkhusky
Sun Jul 15, 2018 9:15 am
Forum: Investing - Theory, News & General
Topic: How to determine weights within portfolio
Replies: 29
Views: 1399

Re: How to determine weights within portfolio

By market weight, do you mean the total capitalization of each asset class? If so, where would I find such information? Ideally, I would like to see it broken out as follows: US Large Cap US Mid Cap US Small Cap International International Small Cap Emerging Market Emerging Market Small Cap US Real...
by rkhusky
Wed Jul 11, 2018 10:02 pm
Forum: Investing - Theory, News & General
Topic: Market cap weighting vs rebalancing
Replies: 13
Views: 1051

Re: Market cap weighting vs rebalancing

While one can determine the optimal portfolio for the past, an optimal portfolio for the future is unknowable.

There is no guarantee that rebalancing will produce higher returns. Rebalancing could produce worse returns than not rebalancing.
by rkhusky
Thu Jul 05, 2018 6:20 pm
Forum: Investing - Theory, News & General
Topic: There will be a recession and market downturn
Replies: 58
Views: 3215

Re: There will be a recession and market downturn

If not the next ten, surely in the next twenty years.
by rkhusky
Thu Jul 05, 2018 3:20 pm
Forum: Investing - Theory, News & General
Topic: Market cap-weighted Index - not diversified?
Replies: 14
Views: 909

Re: Market cap-weighted Index - not diversified?

For those concerned that a few large companies "dominate" cap-weighted funds, would you feel more comfortable if the larger companies each split into 5-10 smaller companies? Would that create a more diversified fund? Even though the only thing that changed was the ownership of the companies? A marke...
by rkhusky
Thu Jul 05, 2018 6:51 am
Forum: Investing - Help with Personal Investments
Topic: How to sell shares purchased at different times?
Replies: 5
Views: 579

Re: How to sell shares purchased at different times?

Look for a spot where you can change the cost basis options.
by rkhusky
Wed Jul 04, 2018 12:49 pm
Forum: Personal Finance (Not Investing)
Topic: IRS safe harbor question re "Your 2017 tax return must cover all 12 months"
Replies: 6
Views: 446

Re: IRS safe harbor question re "Your 2017 tax return must cover all 12 months"

I ask as I changed jobs in 2017, and so finished job #1 at the end of June but only started job #2 at the end of August. Does this mean my 2017 tax return didn't cover July and part of August, or am I misreading the statement? You are misreading the statement. Note that at the top of the 1040 form ...
by rkhusky
Wed Jul 04, 2018 6:25 am
Forum: Investing - Help with Personal Investments
Topic: Simple target date question.
Replies: 25
Views: 1517

Re: Simple target date question.

The Target Retirement funds all use the same underlying funds - Total Stock, Total Int'l, Total Bond and Total Int'l Bond. The yields of the TR funds are derived from the yields of their underlying funds. If the component percentages are the same, which they are for the higher year TR funds, the yie...
by rkhusky
Tue Jul 03, 2018 7:23 am
Forum: Investing - Theory, News & General
Topic: Does the ROTH IRA force us to rebalance in January?
Replies: 24
Views: 1410

Re: Does the ROTH IRA force us to rebalance in January?

Just rebalance when your portfolio gets out of balance. If you believe that the stock market will generally rise over time, the earlier you invest, the better you will do on average.
by rkhusky
Wed Jun 27, 2018 8:34 am
Forum: Investing - Theory, News & General
Topic: As time goes on, will total market investing become more perfect, and tilting strategies less?
Replies: 18
Views: 1476

Re: As time goes on, will total market investing become more perfect, and tilting strategies less?

sillysaver wrote:
Mon Jun 25, 2018 6:27 am
Value is a known factor, but that doesn't stop the masses from chasing growth in every cycle.
If everyone invested in value stocks, wouldn't they become growth stocks? And then people would jump into the new value stocks, which were previously the growth stocks.
by rkhusky
Wed Jun 27, 2018 8:16 am
Forum: Personal Finance (Not Investing)
Topic: IRS publishes draft 2018 1040 - Huge changes made
Replies: 156
Views: 16489

Re: IRS publishes draft 2018 1040 - Huge changes made

FrugalInvestor wrote:
Tue Jun 26, 2018 9:47 pm
TIAX wrote:
Tue Jun 26, 2018 9:45 pm
We should all wait until April to file for the developers to work out the bugs.
But we're told that we need to file early so the identity thieves don't beat us to the punch.
Arrange to owe and then you don't need to worry about someone else filing in your name.
by rkhusky
Wed Jun 27, 2018 8:15 am
Forum: Investing - Theory, News & General
Topic: Are we just way over complicating this?
Replies: 113
Views: 7164

Re: Are we just way over complicating this?

The more posts I read, including my own, them more convinced I am that either we are inventing scenarios to worry about or just discussing things for sport. In fact, it seems to me the wisest person in the kingdom might be someone who just opens a Vanguard account with one fund the Balanced Index f...
by rkhusky
Tue Jun 26, 2018 9:46 am
Forum: Personal Finance (Not Investing)
Topic: IRS publishes draft 2018 1040 - Huge changes made
Replies: 156
Views: 16489

Re: IRS publishes draft 2018 1040 - Huge changes made

So now a self employed person will need to include four extra schedules instead of two? So much simpler! That is usually the modus operandi of the IRS, take something simple and complicate it. :D Rather than the IRS, Congress is to blame for the current tax code. They should scrap the whole thing a...
by rkhusky
Tue Jun 26, 2018 9:38 am
Forum: Investing - Help with Personal Investments
Topic: 60/40 or 40/60?
Replies: 42
Views: 4555

Re: 60/40 or 40/60?

I am younger than you and at 40/60. I have enough in bonds that I could maintain my current standard of living if the market drops by 50% and doesn't come back. I couldn't do that at 60/40.
by rkhusky
Tue Jun 26, 2018 6:27 am
Forum: Investing - Help with Personal Investments
Topic: Roth or Traditional 401k with recent grad
Replies: 15
Views: 915

Re: Roth or Traditional 401k with recent grad

gbronc wrote:
Mon Jun 25, 2018 5:48 pm
One side benefit of a Roth is the ability to withdraw the principal penalty free for a home down payment in the distant future.
While true for a Roth IRA, does it hold for Roth 401k's?
by rkhusky
Sun Jun 24, 2018 6:38 am
Forum: Investing - Theory, News & General
Topic: Factor Investing Makes Someone Money, But Maybe Not You
Replies: 126
Views: 9083

Re: Factor Investing Makes Someone Money, But Maybe Not You

I believe this is one of the advantages of factor investing. A portfolio diversified across factors, when it underperforms the market, underperforms by a modest amount. When it outperforms, it is much more significant. There is no basis for that in the FF formulation. Perhaps it has occasionally oc...
by rkhusky
Fri Jun 22, 2018 4:21 pm
Forum: Investing - Theory, News & General
Topic: Factor Investing Makes Someone Money, But Maybe Not You
Replies: 126
Views: 9083

Re: Factor Investing Makes Someone Money, But Maybe Not You

I think the question arises “Are we investing in businesses or in the stocks of businesses?” We invest indirectly through stocks, and these are the factors shown to drive the behavior of the stocks. It is true that we invest in stocks, but stock prices are driven by the goods and services that comp...
by rkhusky
Fri Jun 22, 2018 4:10 pm
Forum: Investing - Theory, News & General
Topic: Factor Investing Makes Someone Money, But Maybe Not You
Replies: 126
Views: 9083

Re: Factor Investing Makes Someone Money, But Maybe Not You

You forgot to mention that all of the stakeholders market the idea on "Nobel Prize Winning Research" . Bingo!! Funny how those words cause some to run towards the salesperson and others of us to run in the opposite direction. Plus, the Nobel winning research involved explaining past portfolio retur...
by rkhusky
Fri Jun 22, 2018 4:02 pm
Forum: Personal Finance (Not Investing)
Topic: Is it normal for federal and state taxable income to be wildly different?
Replies: 10
Views: 752

Re: Is it normal for federal and state taxable income to be wildly different?

My state does not use the federal deductions, so state taxable income = fed AGI - exemptions - 529 contributions.
by rkhusky
Fri Jun 22, 2018 12:31 pm
Forum: Investing - Help with Personal Investments
Topic: How can I find out % return on Vanguard Total Bond Index?
Replies: 9
Views: 1010

Re: How can I find out % return on Vanguard Total Bond Index?

Jesteroftheswamp wrote:
Fri Jun 22, 2018 12:25 pm
I'm just looking for a rough mathmatical estimate of what my annual return is assuming I'm earning avg. $6.50 in dividends per month
2.6% (12*6.50/3031)
by rkhusky
Fri Jun 22, 2018 8:46 am
Forum: Investing - Theory, News & General
Topic: Factor Investing Makes Someone Money, But Maybe Not You
Replies: 126
Views: 9083

Re: Factor Investing Makes Someone Money, But Maybe Not You

Many people seem to look at factors only as a potential source of increased return. I think the best use of them is to diversify sources of return. Tilting to the factors and increasing safe bond allocation should improve portfolio efficiency for any given expected return: diversify sources of unco...
by rkhusky
Thu Jun 21, 2018 7:04 pm
Forum: Investing - Theory, News & General
Topic: Avoiding Capital Gains Tax
Replies: 16
Views: 1754

Re: Avoiding Capital Gains Tax

Is there a way he can pull from the principal portion of the portfolio instead of the appreciated portion in order not to accrue capital gains? No, you can't. You buy shares and you must sell shares (or fractions thereof in mutual funds). You cannot separate the principal from the gain. As noted ab...
by rkhusky
Thu Jun 21, 2018 6:56 pm
Forum: Investing - Help with Personal Investments
Topic: Poke holes in our plan! Newbie here, need advice.
Replies: 9
Views: 828

Re: Poke holes in our plan! Newbie here, need advice.

In order to provide recommendations, we would need to see the choices available in your 403b plans and their ER's (at least for the lowest price options). The ER of the 2040 fund looks expensive, but hard to tell how it compares to other choices.
by rkhusky
Thu Jun 21, 2018 7:27 am
Forum: Investing - Theory, News & General
Topic: Vanguard Prime Money Market Fund (VMMXX) breaks 1.00 (% not $)
Replies: 234
Views: 41382

Re: Vanguard Prime Money Market Fund (VMMXX) breaks 1.00 (% not $)

zaplunken wrote:
Thu Jun 21, 2018 6:18 am
zaplunken wrote:
Wed Jun 20, 2018 7:51 pm
Does the yield on the PMM fund ever go down? Yields in Treasury bills, notes and bonds have dropped yet the PMM yield is going up during that same time frame.
Does anyone know the answer?
Yes, the yield can go down.
by rkhusky
Thu Jun 21, 2018 7:24 am
Forum: Investing - Help with Personal Investments
Topic: How do you decide when to break a CD?
Replies: 7
Views: 659

Re: How do you decide when to break a CD?

Messy_Orchid_51 wrote:
Wed Jun 20, 2018 11:28 pm
How do you decide when to break CDs?
I wouldn't break a CD unless I was going to make at least $50 more over the next year in interest after accounting for the EWP. And that is if I could do it online. If I have to go into a branch, I would need at least $100.
by rkhusky
Wed Jun 20, 2018 7:25 pm
Forum: Investing - Theory, News & General
Topic: Alpha Architect: Sustainable Active Investing Framework Simple But Not Easy
Replies: 8
Views: 850

Re: Alpha Architect: Sustainable Active Investing Framework Simple But Not Easy

Markets usually very efficient, but still can periodically get consumed with too much optimism or too much fear. Just because investors invest in something that eventually drops in value, does not not mean that the market is inefficient. In other words, an efficient market does not equate to a reli...
by rkhusky
Wed Jun 20, 2018 7:21 pm
Forum: Investing - Theory, News & General
Topic: Effect of Index funds on Market Efficiency
Replies: 19
Views: 1253

Re: Effect of Index funds on Market Efficiency

Since people like to make money, there will always be enough traders to keep the market efficient.
by rkhusky
Sat Jun 16, 2018 7:53 am
Forum: Investing - Help with Personal Investments
Topic: Cap weighted versus equal weighted index investment
Replies: 3
Views: 258

Re: Cap weighted versus equal weighted index investment

Equal weighted based on company name doesn’t make much sense. Consider a large entity like Kraft. If they split each of their brands into separate companies, does it make sense to increase your stake in those brands a hundred-fold? You would need to if you were equal weighted by company. A market ca...
by rkhusky
Fri Jun 15, 2018 8:41 am
Forum: Investing - Theory, News & General
Topic: Factor-based strategy is better (winer), OK. then who are the losers?
Replies: 55
Views: 2633

Re: Factor-based strategy is better (winer), OK. then who are the losers?

I know it’s an unpopular thought but I still think the longer the holding period, the less risky a riskier asset becomes. That needs some caveats. You need a diversified portfolio. Holding buggy maker or vacuum tube or Enron stocks long term did not reduce risk. Even with diversification, individua...
by rkhusky
Fri Jun 15, 2018 7:18 am
Forum: Investing - Theory, News & General
Topic: Diversified portfolio but still too much Apple, Microsoft, etc.
Replies: 13
Views: 1516

Re: Diversified portfolio but still too much Apple, Microsoft, etc.

If it helps, think of Apple as 5 or 6 separate companies lumped together under one ownership umbrella. You want your portfolio to be relatively indifferent to the ownership umbrella.
by rkhusky
Thu Jun 07, 2018 8:56 pm
Forum: Investing - Theory, News & General
Topic: Yes, you can diversify a market portfolio
Replies: 190
Views: 9802

Re: Yes, you can diversify a market portfolio

I don't agree that the smaller list is more diversified. Suppose that instead of picking 4 companies out of the original 10, Morgan Stanley bought the other 6 companies that were not chosen. You end up with the exact same 4 companies in your portfolio. Is there any difference in the diversification...
by rkhusky
Thu Jun 07, 2018 8:41 pm
Forum: Investing - Theory, News & General
Topic: Yes, you can diversify a market portfolio
Replies: 190
Views: 9802

Re: Yes, you can diversify a market portfolio

Perhaps, but I suppose we can agree that any major black swan event that affects Morgan Stanley is more like to affect other financial companies more than it impacts SO or GILD. If we have a global banking meltdown, owning both Morgan Stanley AND Goldman Sachs isn't likely to help your portfolio ve...
by rkhusky
Thu Jun 07, 2018 1:36 pm
Forum: Investing - Theory, News & General
Topic: Yes, you can diversify a market portfolio
Replies: 190
Views: 9802

Re: Yes, you can diversify a market portfolio

Imagine you started with an equal-weight portfolio of the following ten stocks: BAC (Bank of America Corporation) C (Citigroup Inc.) GILD (Gilead Sciences, Inc.) GS (Goldman Sachs Group, Inc.) JPM (J P Morgan Chase & Co) MS (Morgan Stanley) SO (Southern Company) USB (U.S. Bancorp) V (Visa Inc.) WFC...
by rkhusky
Thu Jun 07, 2018 6:54 am
Forum: Investing - Theory, News & General
Topic: Yes, you can diversify a market portfolio
Replies: 190
Views: 9802

Re: Yes, you can diversify a market portfolio

Thus it really comes down to how much one believes in the theory of multi-asset or factor investing and is willing to take their chances with investment portfolios that deviate from a standard neutral "market portfolio." Just my perspective. Yes, we invest looking forward. We don’t know what will h...
by rkhusky
Thu Jun 07, 2018 6:27 am
Forum: Investing - Theory, News & General
Topic: Yes, you can diversify a market portfolio
Replies: 190
Views: 9802

Re: Yes, you can diversify a market portfolio

vineviz wrote:
Wed Jun 06, 2018 7:42 pm
if you’re using all of the data available, it isn’t cherry picking.
True, but there are still coincidental time-dependent effects when one uses just one set of data. One should look at a variety of time periods to see if the hypothesis is robust.
by rkhusky
Tue Jun 05, 2018 9:02 pm
Forum: Investing - Theory, News & General
Topic: Yes, you can diversify a market portfolio
Replies: 190
Views: 9802

Re: Yes, you can diversify a market portfolio

VTSMX has virtually no exposure to the risk and style factors (small companies, value companies, quality companies, low beta stocks, etc.) This is a common misconception. VTSMX (Vanguard Total Stock Market) holds the market weight in nearly all U.S. "risk and style factors small companies, value co...
by rkhusky
Tue Jun 05, 2018 8:57 pm
Forum: Investing - Theory, News & General
Topic: Yes, you can diversify a market portfolio
Replies: 190
Views: 9802

Re: Yes, you can diversify a market portfolio

Total Stock Market has thousands of small-cap companies and only hundreds of large cap companies. By that measure, it is overweight in small caps. Total Stock Market has equal percentages of the investable shares for all the companies in its portfolio. By that measure, it is perfectly diversified. Y...
by rkhusky
Tue Jun 05, 2018 6:53 am
Forum: Investing - Theory, News & General
Topic: Do bond funds lose value while CDs do not?
Replies: 31
Views: 3446

Re: Do bond funds lose value while CDs do not?

As an example, Vanguard Total Bond (VBMFX) had prices of 10.38, 10.26, 11.00, 10.98, 10.52 on dates 3/31/03, 3/31/08, 3/31/13, 3/31/15, 3/31/18, respectively. The 10-yr, 5-yr, 3-yr returns were 3.46%, 1.62%, 1.02%, respectively (not sure how to find the 15-yr return, corresponding to 3/31/03). Note ...
by rkhusky
Tue Jun 05, 2018 6:16 am
Forum: Investing - Help with Personal Investments
Topic: Why do I have a wash sale disallowance?
Replies: 12
Views: 1508

Re: Why do I have a wash sale disallowance?

Now, two more follow up questions: Easy one first: what is the significance of the $157 disallowance? My total (short-term) loss was $501.52 (=148.39 + 181.92 + 171.21[adj]). Does this mean I can really only use $344.52 (= 501.52 - 157.00) for tax loss harvesting? Who chooses which lot (09/20 vs. 0...
by rkhusky
Tue Jun 05, 2018 5:58 am
Forum: Investing - Theory, News & General
Topic: Do bond funds lose value while CDs do not?
Replies: 31
Views: 3446

Re: Do bond funds lose value while CDs do not?

Again, assume that interest rates do not change and I am not reinvesting because I am using all of the dividends/interest paid. My experience has been that while both will pay me the $3k in dividends/interest annually for five years, the ending value of the CD after five years will be $100k but the...
by rkhusky
Mon Jun 04, 2018 5:53 pm
Forum: Investing - Help with Personal Investments
Topic: Why do I have a wash sale disallowance?
Replies: 12
Views: 1508

Re: Why do I have a wash sale disallowance?

The 63 shares purchased on 11/16 were considered replacement shares for 63 of the shares purchased on 9/22, which were sold less than 30 days after the replacement shares were purchased. The amount disallowed was therefore (63/136) * (1,158.24 - 819.33) = 157.00. If you paid 6.25/sh on 11/16, then, ...
by rkhusky
Mon Jun 04, 2018 7:10 am
Forum: Personal Consumer Issues
Topic: How a credit card refund is applied?
Replies: 27
Views: 1747

Re: How a credit card refund is applied?

My question, will the $1,500 refund be applied to pay off my last statement balance, so I only pay $1,500 for the total balance? Yes, as long as the credit is posted before the statement due date. If I have a credit that comes after the current statement date but before the due date, I have often s...
by rkhusky
Mon Jun 04, 2018 7:02 am
Forum: Investing - Theory, News & General
Topic: Do bond funds lose value while CDs do not?
Replies: 31
Views: 3446

Re: Do bond funds lose value while CDs do not?

Has their been a time when interest rates and expectations have stayed sufficiently flat that one could separate the signal from noise?
by rkhusky
Sun Jun 03, 2018 9:47 pm
Forum: Investing - Help with Personal Investments
Topic: TSP Advice - Retiring Soon
Replies: 18
Views: 1620

Re: TSP Advice - Retiring Soon

Rollover a portion of the TSP to a Traditional IRA and do Roth conversions to the top of the 12% or 24% bracket, depending on what you expect your marginal rate will be after age 70.
by rkhusky
Sun Jun 03, 2018 9:42 pm
Forum: Investing - Help with Personal Investments
Topic: Bonds in Roth IRA
Replies: 24
Views: 1546

Re: Bonds in Roth IRA

Another option is to put corporate bonds, which are riskier and higher yielding, in the Roth and use the short term bond in the 401k.
by rkhusky
Sun Jun 03, 2018 5:59 am
Forum: Investing - Help with Personal Investments
Topic: Bonds in Roth IRA
Replies: 24
Views: 1546

Re: Bonds in Roth IRA

If you are in a higher tax bracket, 22%+, you might also look at a muni bond fund in taxable (need to check return vs taxable bond and state tax rate also comes into play). You could also put a bit of money in the short bond in the 401k and the rest of bonds in the Roth IRA.
by rkhusky
Sat Jun 02, 2018 8:00 pm
Forum: Investing - Help with Personal Investments
Topic: VASGX with 25-30 year investment plan. Looking for advice. [Vanguard LifeStrategy Growth]
Replies: 31
Views: 2470

Re: VASGX with 25-30 year investment plan. Looking for advice. [Vanguard LifeStrategy Growth]

Best investment I ever made, hopefully will never need to sell. The 20% in bonds is perfect to reduce the froth in the global markets. Thank you for your response. I have been nervous about bonds since I have had so many say they are not worth it anymore. This is a great time to invest in bonds. In...