Search found 5390 matches

by rkhusky
Tue Sep 25, 2018 3:24 pm
Forum: Investing - Help with Personal Investments
Topic: TLH VTIAX
Replies: 18
Views: 522

Re: TLH VTIAX

Well my initial question was to understand if there was a way to discover any potential wash sale before the IRS and the audit.... Looks like there is none... I wasn't able to find if some people on this forum already experienced a wash sale with VTIAX... So I guess all the recurring recommendation...
by rkhusky
Tue Sep 25, 2018 2:40 pm
Forum: Investing - Theory, News & General
Topic: Are target funds off-target?
Replies: 32
Views: 2323

Re: Are target funds off-target?

If the market has dropped, the target fund won't need to sell stocks to buy bonds, because the market will have performed the rebalancing for the fund. In fact, if the market has dropped sufficiently, the the target fund may need to sell bonds and buy stocks to maintain its asset allocation. And in...
by rkhusky
Tue Sep 25, 2018 2:30 pm
Forum: Investing - Help with Personal Investments
Topic: TLH VTIAX
Replies: 18
Views: 522

Re: TLH VTIAX

Ok.. So how (when) do we know if there is a wash sale? The IRS has not given clear guidance on what is meant by "substantially identical". So, you have to decide how conservative or aggressive you want to be. In his first post in the thread, Whakamole gave three levels of aggressiveness. Take your ...
by rkhusky
Tue Sep 25, 2018 6:06 am
Forum: Investing - Theory, News & General
Topic: Are target funds off-target?
Replies: 32
Views: 2323

Re: Are target funds off-target?

May I add some related questions concerns - since it's getting to the end of year - about glide path adjustments. Typically how much would allocation from equities decrease, in end of year rebalance? (In, say, a 2020 fund - would it be about 2 or 3 percent?) The exact percentage is murky. No custom...
by rkhusky
Tue Sep 25, 2018 6:03 am
Forum: Investing - Theory, News & General
Topic: Are target funds off-target?
Replies: 32
Views: 2323

Re: Are target funds off-target?

1. Reducing your equity holdings annually (which is what these funds do) is not the same as rebalancing, not even close. Target funds change your asset allocation every year regardless of your risk tolerance or how your mix of stock and bonds have changed. In fact, using target funds basically mean...
by rkhusky
Mon Sep 24, 2018 8:36 pm
Forum: Personal Finance (Not Investing)
Topic: [Help my company select 401k plan Target Retirement Funds - T. Rowe vs Vanguard]
Replies: 14
Views: 567

Re: [Help my company select 401k plan Target Retirement Funds - T. Rowe vs Vanguard]

The Vanguard TR funds are made up of 4 index funds - Total Stock (US), Total Int'l, Total Bond (US) and Total Int'l Bond. The T Rowe Price TR funds are made up of 22 overlapping active mutual funds. That and the lower ER would make me lean heavily towards Vanguard.
by rkhusky
Mon Sep 24, 2018 8:30 pm
Forum: Investing - Help with Personal Investments
Topic: VEXRX
Replies: 4
Views: 298

Re: VEXRX

Explorer is an active small/mid growth fund, more mid than small since Morningstar changed their definitions at the beginning of the year. You could get by with just S&P 500, but if you want some smaller stocks, I would choose Explorer rather than paying 0.4% more in ER.
by rkhusky
Mon Sep 24, 2018 4:23 pm
Forum: Investing - Help with Personal Investments
Topic: TLH
Replies: 7
Views: 652

Re: TLH

I will only be selling for loss in taxable and buying replacement shares there. I will just turn off dividend reinvesting temporarily in Roth and 401k. I don’t think it makes sense to avoid automatic reinvesting of dividends in 401k and Roth the rest of year just to make TLH potentially easier, do ...
by rkhusky
Mon Sep 24, 2018 3:35 pm
Forum: Investing - Help with Personal Investments
Topic: TLH
Replies: 7
Views: 652

Re: TLH

To make sure I have this right....If I wanted to TLH my TSM when it has losses, I could just let my funds stay as they are in tax advantaged, but turn off dividend reinvestments in Roths and solo 401k (which are all TSM). If 31 days have passed since I last bought any TSM in tax advantaged or taxab...
by rkhusky
Mon Sep 24, 2018 3:25 pm
Forum: Investing - Help with Personal Investments
Topic: Does it make sense to own two different total stock index funds?
Replies: 21
Views: 1284

Re: Does it make sense to own two different total stock index funds?

That's fine. You need only watch out for owning funds that track the same index when one of them is in a taxable account. Why is that? If you sell shares in a taxable account for a loss, you are able to deduct it on your taxes (first from capital gains and then to up to $3K in regular income. Plus ...
by rkhusky
Mon Sep 24, 2018 1:20 pm
Forum: Investing - Help with Personal Investments
Topic: Does it make sense to own two different total stock index funds?
Replies: 21
Views: 1284

Re: Does it make sense to own two different total stock index funds?

I have a 401k that offers a total stock market index fun, but what if I wanted to also add a total stock market index fund to my Roth IRA? Would it be crazy to choose a different total stock market index fund for my Roth IRA that might offer a lower exp ratio? Should I just continue to invest in th...
by rkhusky
Mon Sep 24, 2018 1:16 pm
Forum: Investing - Help with Personal Investments
Topic: Rebalancing/modifying a portfolio
Replies: 6
Views: 574

Re: Rebalancing/modifying a portfolio

Have you been rebalancing regularly over the last 4 years? If so, you should have been selling Total Stock and buying Total Int'l. If not, you are likely not at 60/40 anymore. What is the current actual asset allocation?
by rkhusky
Mon Sep 24, 2018 8:54 am
Forum: Investing - Help with Personal Investments
Topic: TLH
Replies: 7
Views: 652

Re: TLH

I would have to turn off auto dividend reinvesting in Traditional IRAs and Roth’s also. If I do this now then I lose time in market also while I am “waiting” for wash sale. Or is this not a big deal to reinvest dividends quarterly in tax advantaged accounts just like I do in taxable? Send the divid...
by rkhusky
Mon Sep 24, 2018 8:47 am
Forum: Investing - Theory, News & General
Topic: Are target funds off-target?
Replies: 32
Views: 2323

Re: Are target funds off-target?

Target date funds are great for the majority of people who do not want to be bothered with learning about asset allocation or monitoring their portfolio. There are several low cost options available and for most of them it is very easy to see what you own, if you care. And if you don't care about as...
by rkhusky
Mon Sep 24, 2018 5:47 am
Forum: Investing - Help with Personal Investments
Topic: TLH
Replies: 7
Views: 652

Re: TLC

I have read the wiki page on TLC and feel I have a good idea how it works. I have never done it. When I set up my taxable account last year and selected funds, I didn't realize how complicated I made it if I wanted to TLC and avoid a wash sale. Perhaps you meant TLH (https://www.bogleheads.org/wiki...
by rkhusky
Sun Sep 23, 2018 5:39 am
Forum: Investing - Help with Personal Investments
Topic: Roth vs Traditional IRA
Replies: 11
Views: 868

Re: Roth vs Traditional IRA

Maxing the Traditional TSP ($18500) and using the tax savings to fund a Roth IRA ($5500) is usually a good choice. Then when you retire early, convert the Traditional TSP to Roth IRA at a lower tax rate.
by rkhusky
Sat Sep 22, 2018 7:59 pm
Forum: Personal Consumer Issues
Topic: Can salt water kill weeds permanently?
Replies: 18
Views: 2805

Re: Can salt water kill weeds permanently?

Roundup is meant to be used where you want to kill vegetation at a particular time and then have vegetation grow there afterwards. There are other products that will kill the vegetation and not allow anything to grow for years. There used to be something called Triox back in the day. I see something...
by rkhusky
Sat Sep 22, 2018 6:18 pm
Forum: Investing - Help with Personal Investments
Topic: VTSAX vs. FZROX for new investments
Replies: 14
Views: 1035

Re: VTSAX vs. FZROX for new investments

Won't make a monetary difference until you get a few $100K in the account. Make your decision based on ease of use. True, but I'm working out a plan to sell off company stock to put in the brokerage account. It could add up quickly, especially with compounding interest. I'm not likely to move anyth...
by rkhusky
Sat Sep 22, 2018 5:45 pm
Forum: Investing - Help with Personal Investments
Topic: VTSAX vs. FZROX for new investments
Replies: 14
Views: 1035

Re: VTSAX vs. FZROX for new investments

Won't make a monetary difference until you get a few $100K in the account. Make your decision based on ease of use.
by rkhusky
Fri Sep 21, 2018 1:50 pm
Forum: Investing - Help with Personal Investments
Topic: One thing I dislike about TDFs
Replies: 20
Views: 856

Re: One thing I dislike about TDFs

JBTX wrote:
Fri Sep 21, 2018 12:15 pm
Personally I think having 80-100% of equity investments in one country is "too risky".
Looking at the matter on a per-country basis can be misleading. Better to look at market weight or at some measure of risk versus return.
by rkhusky
Fri Sep 21, 2018 1:48 pm
Forum: Investing - Help with Personal Investments
Topic: One thing I dislike about TDFs
Replies: 20
Views: 856

Re: One thing I dislike about TDFs

Are TDFs to risky on international equities? For example, my 401k Fidelity 2055 TDF has 33% in international..the 2025 TDF has 23% in international. When we talk about percent in international, it is as a percent of stocks, not percent of portfolio. I am guessing from your numbers that you have the...
by rkhusky
Fri Sep 21, 2018 9:20 am
Forum: Investing - Theory, News & General
Topic: TSP to Increase Stock Holdings in L Funds
Replies: 48
Views: 2461

Re: TSP to Increase Stock Holdings in L Funds

The real "recency bias" at work on this board is the impression that bonds are a safe alternative to stocks on account of a 35 year bull market in bonds 1982-July 2016. Ignoring the past 27 month "correction" in bonds, virtually no investors have experienced a bond bear market in real terms. Why wa...
by rkhusky
Fri Sep 21, 2018 8:00 am
Forum: Investing - Help with Personal Investments
Topic: Out of Market
Replies: 23
Views: 3300

Re: Out of Market

I find bond funds easier to deal with than CD's. Vanguard's Short Term Bond Index currently has a yield of 2.89% and Intermediate Term's is 3.40%.
by rkhusky
Fri Sep 21, 2018 6:35 am
Forum: Investing - Help with Personal Investments
Topic: Traditional TSP and Roth TSP
Replies: 16
Views: 1450

Re: Traditional TSP and Roth TSP

Likely, but if your goal is to amass as much as possible in a retirement account for retirement income, Roth contributions would give him more after tax. And while he may have lower income in retirement, the possible return to the old tax brackets (after the current cuts expire) at the federal leve...
by rkhusky
Fri Sep 21, 2018 5:27 am
Forum: Personal Finance (Not Investing)
Topic: General 2018 Tax Question
Replies: 33
Views: 3571

Re: General 2018 Tax Question

Our tax calculation isn't complicated using only Sch.A , D, Qual.Div. & CG Wrksht., SS Ben. Wrksht. , & the applicable tax rate tables for the tax year ; the new Form 1040 along with the 6 schedules just struck me as tax data organization and not a new calculation methodology - I assumed I could us...
by rkhusky
Thu Sep 20, 2018 12:08 pm
Forum: Investing - Help with Personal Investments
Topic: Newbie with no idea where to invest
Replies: 18
Views: 1042

Re: Early Retirement Where to Invest

To begin with, put all IRA's into TR 2060 (or something earlier if you want to be more conservative). If you expect to not tap the taxable account for 10+ years, then move the LS and MidCap funds to Total Stock Market, if the cap gain taxes aren't too large (0% if you remain in the 12% bracket). Tha...
by rkhusky
Thu Sep 20, 2018 8:12 am
Forum: Investing - Theory, News & General
Topic: TSP to Increase Stock Holdings in L Funds
Replies: 48
Views: 2461

Re: TSP to Increase Stock Holdings in L Funds

Am I understanding this correctly? "When the average participant is age 58, the fund will be 60 percent stocks, and it will bottom out at 30 percent equities at age 63." Age 58 = 60/40 Stocks/Bonds Age 63 = 30/70 Stocks/Bonds So if a deep bear market hits at age 58, you will be selling half your st...
by rkhusky
Thu Sep 20, 2018 6:41 am
Forum: Personal Finance (Not Investing)
Topic: General 2018 Tax Question
Replies: 33
Views: 3571

Re: General 2018 Tax Question

Looks like I will have 1040, Sched 1, Sched B, Sched D, and three 8949's. About the same as last year, since I won't have a Sched A.
by rkhusky
Wed Sep 19, 2018 5:14 pm
Forum: Investing - Theory, News & General
Topic: TSP to Increase Stock Holdings in L Funds
Replies: 48
Views: 2461

Re: TSP to Increase Stock Holdings in L Funds

I wonder when the next change will be? Market timers should be so excited about this, that the TSP is always going to try to remain hip and viable to whatever's popular in a given year. The TSP is hip. You must be joking. They take forever to do anything. In order to do a withdrawal, you must eithe...
by rkhusky
Wed Sep 19, 2018 1:19 pm
Forum: Investing - Theory, News & General
Topic: TSP to Increase Stock Holdings in L Funds
Replies: 48
Views: 2461

Re: TSP to Increase Stock Holdings in L Funds

I wonder when the next change will be? Market timers should be so excited about this, that the TSP is always going to try to remain hip and viable to whatever's popular in a given year. The TSP is hip. You must be joking. They take forever to do anything. In order to do a withdrawal, you must eithe...
by rkhusky
Wed Sep 19, 2018 10:07 am
Forum: Investing - Theory, News & General
Topic: Why should bond duration = investment horizon?
Replies: 45
Views: 2410

Re: Why should bond duration = investment horizon?

When interest rates go up, the NAV of a bond fund goes down. The NAV will go down approximately an amount equal to the duration x interest rate change. You will recoup the loss in NAV in increased interest payments, if you hold the fund for a time approximately equal to the duration. Therefore, if y...
by rkhusky
Wed Sep 19, 2018 6:35 am
Forum: Investing - Theory, News & General
Topic: New era for TSP "I" Fund?
Replies: 16
Views: 2087

Re: New era for TSP "I" Fund?

The L Funds are ultra conservative and reach their terminal allocation of 20/80 on the target year. This compares to Vanguard's TR funds reaching 50/50 on the target year and their terminal allocation of 30/70 7 years after that. Here is the announcement from the TSP web site: Changes coming to the ...
by rkhusky
Wed Sep 19, 2018 6:29 am
Forum: Investing - Theory, News & General
Topic: WSJ 9/12/18- Fidelity Doubles Down on Free Fund Strategy
Replies: 34
Views: 3592

Re: WSJ 9/12/18- Fidelity Doubles Down on Free Fund Strategy

There have been threads about how large some Vanguard funds have grown, and what if there is room for cutting it down further. Vanguard may be able to marginally lower some of their ER's by finding new efficiencies. But they are at a disadvantage compared to Fidelity because all of Vanguard's funds...
by rkhusky
Tue Sep 18, 2018 7:49 pm
Forum: Investing - Theory, News & General
Topic: WSJ 9/12/18- Fidelity Doubles Down on Free Fund Strategy
Replies: 34
Views: 3592

Re: WSJ 9/12/18- Fidelity Doubles Down on Free Fund Strategy

As I've mentioned at least twice before, Vanguard, I believe, will lower ERs eventually. They don't have to match Fido's zero ERs. All then need to do is lower them a bit (I don't know what "a bit" would be, but a 25%-66% reduction for many of their ETFs/Mutual Funds would be a good start!) There's...
by rkhusky
Tue Sep 18, 2018 6:45 pm
Forum: Investing - Theory, News & General
Topic: Advantage of Rebalancing for different asset allocations
Replies: 25
Views: 1436

Re: Advantage of Rebalancing for different asset allocations

Sure, but determining whether or not there is a rebalancing bonus requires a careful setup of the problem. The bonus is in the fact that return of the rebalanced portfolio is larger than the sum of the weighted expected returns of the portfolio constituents. Could be a bonus or a penalty. And a 200...
by rkhusky
Tue Sep 18, 2018 6:37 pm
Forum: Personal Finance (Not Investing)
Topic: "Taking" RMDs
Replies: 18
Views: 1638

Re: "Taking" RMDs

Of course, whether you actually sell an asset or simply transfer it out of the IRA is a separate issue from taking the distribution. There is no transfer. With the RMD, you sell shares in the IRA/401k and either send the cash to a checking account or buy shares in a taxable account with the cash. S...
by rkhusky
Tue Sep 18, 2018 12:28 pm
Forum: Personal Finance (Not Investing)
Topic: "Taking" RMDs
Replies: 18
Views: 1638

Re: "Taking" RMDs

Of course, whether you actually sell an asset or simply transfer it out of the IRA is a separate issue from taking the distribution. There is no transfer. With the RMD, you sell shares in the IRA/401k and either send the cash to a checking account or buy shares in a taxable account with the cash.
by rkhusky
Tue Sep 18, 2018 12:22 pm
Forum: Investing - Theory, News & General
Topic: With expense-free funds, are other Fidelity fund obsolete?
Replies: 7
Views: 535

Re: With expense-free funds, are other Fidelity fund obsolete?

Both Fidelity and Vanguard's fund lineup has gotten cluttered up with old funds that that seem to have been superseded by new! improved! funds. A Vanguard example is the Vanguard FTSE All-World Ex-US fund, VFWIX, and the Vanguard Total International Stock Index Fund, VGTSX. I don't know the reasons...
by rkhusky
Tue Sep 18, 2018 6:03 am
Forum: Investing - Theory, News & General
Topic: 401k: Why not only after-tax?
Replies: 37
Views: 3954

Re: 401k: Why not only after-tax?

Make sure you have considered the effects of SS taxation and taxes on qualified dividends and cap gains. Both can cause marginal rates to be higher than one might expect. See https://www.bogleheads.org/wiki/Taxation_of_Social_Security_benefits I see no reason to want marginal tax rates to be the sam...
by rkhusky
Tue Sep 18, 2018 5:55 am
Forum: Investing - Theory, News & General
Topic: Equity in house / Do you use it?
Replies: 56
Views: 3329

Re: Equity in house / Do you use it?

Used some equity to finance an addition. Wife pointed out that we could have withdrawn investments from a taxable account to pay for the addition, so it was equivalent to taking out equity to invest.
by rkhusky
Tue Sep 18, 2018 5:48 am
Forum: Investing - Help with Personal Investments
Topic: Facing Retirement at year end
Replies: 22
Views: 2657

Re: Facing Retirement at year end

Check an online annuity calculator to see what $430K will buy you. See what kind of Obamacare policy you can get online. You may be eligible for subsidies. Once you know what your full expenses will be, you can see if your savings and SS is sufficient. The starting point for withdrawal rates is 4% (...
by rkhusky
Tue Sep 18, 2018 5:35 am
Forum: Investing - Help with Personal Investments
Topic: TSP to Roth IRA Tax Strategy (Post Retirement)
Replies: 27
Views: 1629

Re: TSP to Roth IRA Tax Strategy (Post Retirement)

The Federal Retirement Thrift Investment Board announced a few months ago that it expected to implement the liberalized withdrawal rules in September 2019, about one year from now. I’m trying to wait until then before I begin making Roth conversions from my TSP account. In the meantime, we’re makin...
by rkhusky
Tue Sep 18, 2018 4:46 am
Forum: Investing - Help with Personal Investments
Topic: Which fixed income fund to rebalance into stock fund in a correction?
Replies: 5
Views: 618

Re: Which fixed income fund to rebalance into stock fund in a correction?

MM if bonds down. Why are you holding MM? The interest rate risk. If you plan to hold the bonds longer than the average duration of the fund, increased interest rates shouldn't worry you. If you are planning to withdraw in a year or two, MM fund is okay (but so is a CD or high rate savings account).
by rkhusky
Tue Sep 18, 2018 3:27 am
Forum: Investing - Theory, News & General
Topic: Advantage of Rebalancing for different asset allocations
Replies: 25
Views: 1436

Re: Advantage of Rebalancing for different asset allocations

A portfolio that averages 7% return annually has already done better than one that averages 5%, assuming no new contributions. There is no way for the latter to outperform the former. obvious. Sure, but determining whether or not there is a rebalancing bonus requires a careful setup of the problem....
by rkhusky
Tue Sep 18, 2018 3:07 am
Forum: Investing - Help with Personal Investments
Topic: TSP to Roth IRA Tax Strategy (Post Retirement)
Replies: 27
Views: 1629

Re: TSP to Roth IRA Tax Strategy (Post Retirement)

You should look at marginal rates first and map out the different marginal rates you may experience with different amounts of Roth conversions. SS taxation causes a hump in the marginal rates (see https://www.bogleheads.org/wiki/Taxation_of_Social_Security_benefits) and effective rates are useful to...
by rkhusky
Mon Sep 17, 2018 5:29 pm
Forum: Investing - Theory, News & General
Topic: Advantage of Rebalancing for different asset allocations
Replies: 25
Views: 1436

Re: Advantage of Rebalancing for different asset allocations

A portfolio that averages 7% return annually has already done better than one that averages 5%, assuming no new contributions. There is no way for the latter to outperform the former. No one knows whether a 100/0 portfolio will outperform a 70/30 portfolio over any future time period. No one know wh...
by rkhusky
Mon Sep 17, 2018 5:18 pm
Forum: Investing - Help with Personal Investments
Topic: TSP to Roth IRA Tax Strategy (Post Retirement)
Replies: 27
Views: 1629

Re: TSP to Roth IRA Tax Strategy (Post Retirement)

Look here for some spreadsheets & calculators: https://www.bogleheads.org/wiki/Tools_and_calculators. For example, the Personal finance toolbox or Retiree Portfolio Model. For a quick check, look at your expected marginal rates in retirement before and after taking SS and before and after RMD's hit....
by rkhusky
Sat Sep 15, 2018 8:58 pm
Forum: Personal Finance (Not Investing)
Topic: Any issue with overpaying taxes?
Replies: 23
Views: 1627

Re: Any issue with overpaying taxes?

Just put $0 and be done with it. Or calculate approximately how much extra in taxes (=tax rate*num shares*(price now - $1)) it would cost and decide if it is worth the hassle of tracking down evidence of the true basis.
by rkhusky
Sat Sep 15, 2018 6:31 am
Forum: Investing - Theory, News & General
Topic: Vanguard and Certificate of Deposits
Replies: 8
Views: 1131

Re: Vanguard and Certificate of Deposits

TIAX wrote:
Fri Sep 14, 2018 9:34 pm
yousha wrote:
Fri Sep 14, 2018 8:18 pm
I now learned that you must have a brokerage account to do so...I am not interested in opening one. Thanks anyway.
I believe you can open a new separate brokerage account and leave your old mutual fund accounts.
True.
by rkhusky
Sat Sep 15, 2018 6:25 am
Forum: Investing - Theory, News & General
Topic: Age in Bonds - Still Recommended?
Replies: 142
Views: 10252

Re: Age in Bonds - Still Recommended?

There is no right or wrong answer. It is all personal preference and circumstances.

Personally, at the moment I am age+5 in bonds.

I always consider the possibility that the market could drop 50% and not return to even for 10 years.