Search found 9652 matches

by rkhusky
Fri Aug 07, 2020 3:55 pm
Forum: Investing - Theory, News & General
Topic: Tax loss harvesting treasury bonds
Replies: 8
Views: 448

Re: Tax loss harvesting treasury bonds

It must depend on how much different, since “substantially identical” is less identical than “identical”.
by rkhusky
Fri Aug 07, 2020 3:51 pm
Forum: Investing - Theory, News & General
Topic: Boglehead portfolio with End Caps
Replies: 17
Views: 646

Re: Boglehead portfolio with End Caps

There are no advantages to small investors in stocks. The best solution is to ride the big dogs to victory by investing in the market and letting the rich spend their millions determining the correct prices. On the other hand, small investors have advantages in cash investing, what with FDIC insuran...
by rkhusky
Fri Aug 07, 2020 3:43 pm
Forum: Investing - Theory, News & General
Topic: Big ERN - how often should we rebalance?
Replies: 7
Views: 964

Re: Big ERN - how often should we rebalance?

Calendar-based rebalancing. Doesn't address rebalancing bands. You do best if your rebalancing strategy has you rebalancing at the top of significant peaks and the bottom of significant valleys, which doesn't work unless you are a very good (lucky) market timer. The equities covid swoon offered suc...
by rkhusky
Fri Aug 07, 2020 3:37 pm
Forum: Investing - Theory, News & General
Topic: Dividends ?
Replies: 9
Views: 936

Re: Dividends ?

People who prefer dividends believe that they would make better use of the profits than the company and/or have an aversion to selling shares and/or believe that dividend paying companies are safer.
by rkhusky
Fri Aug 07, 2020 11:45 am
Forum: Investing - Theory, News & General
Topic: Purchased a ST Corp Bond ETF in March - Now What?
Replies: 31
Views: 1188

Re: Purchased a ST Corp Bond ETF in March - Now What?

A good example for heeding the typical TLH warning - "don't choose a TLH partner that you aren't willing to keep for a long time". Timing the bond market is just as difficult as timing the stock market. Both are affected by future world events, many of which are unknowable.
by rkhusky
Fri Aug 07, 2020 11:27 am
Forum: Investing - Theory, News & General
Topic: Boglehead portfolio with End Caps
Replies: 17
Views: 646

Re: Boglehead portfolio with End Caps

Investing in the past year's winners is not likely to work. Neither did investing in the past year's losers (Dog of the Dow). Outsmarting the market is not that easy.
by rkhusky
Fri Aug 07, 2020 11:20 am
Forum: Investing - Theory, News & General
Topic: Tax loss harvesting treasury bonds
Replies: 8
Views: 448

Re: Tax loss harvesting treasury bonds

Is another 30 year treasury bond, bought at a different interest rate, substantially identical? It probably depends on how different the rates are and if there are any other differences. From the white paper linked above: It can be noted that the ratio between the coupon rates of the two bonds (3.4...
by rkhusky
Fri Aug 07, 2020 8:00 am
Forum: Personal Investments
Topic: 529 Investment Change??
Replies: 3
Views: 238

Re: 529 Investment Change??

That sounds fine. If you are reasonably sure that $30K should cover college expenses, then even if the S&P 500 drops by 50%, you still have a reasonable cushion. No plans for graduate school? On the other hand, if you plan to pay for his schooling no matter what happens in the market, then you could...
by rkhusky
Fri Aug 07, 2020 7:47 am
Forum: Investing - Theory, News & General
Topic: Tax loss harvesting treasury bonds
Replies: 8
Views: 448

Re: Tax loss harvesting treasury bonds

I plan on eventually going to long term treasuries as my bond holding, but I wanted to buy individual 30 year treasuries. Can you tax loss harvest an individual treasury bond? For instance, if I sell a 30 year treasury bond that has lost value and buy another 30 year treasury bond? As long as the r...
by rkhusky
Fri Aug 07, 2020 7:31 am
Forum: Personal Investments
Topic: Traditional or Roth IRA for parents turning 60?
Replies: 3
Views: 204

Re: Traditional or Roth IRA for parents turning 60?

Need a lot more information. Current income/tax bracket, current savings and where its at (401k, IRA, taxable), expected retirement year, expected pension and SS amounts. See https://www.bogleheads.org/wiki/Traditional_versus_Roth. The Roth vs Traditional question boils down to a comparison between ...
by rkhusky
Thu Aug 06, 2020 9:12 pm
Forum: Investing - Theory, News & General
Topic: Is Roth always better than taxable?
Replies: 32
Views: 2086

Re: Is Roth always better than taxable?

With taxable there is always the risk that Congress will change cap gain rates, which is much more likely than taxing Roth withdrawals. Heard a proposal recently to tax all cap gains at income tax rates. Not likely to happen, but you never know.
by rkhusky
Thu Aug 06, 2020 7:06 pm
Forum: Investing - Theory, News & General
Topic: Asymmetric risk in the Roth vs Traditional question
Replies: 297
Views: 13407

Re: Asymmetric risk in the Roth vs Traditional question

It seems to me that Roth is more valuable the longer the funds can stay in the account. So for a high earner who is relatively early in their career (even if they expect to be in the same bracket when they retire), having those decades of tax free growth is more valuable than avoiding taxes early o...
by rkhusky
Thu Aug 06, 2020 6:41 am
Forum: Investing - Theory, News & General
Topic: Big ERN - how often should we rebalance?
Replies: 7
Views: 964

Re: Big ERN - how often should we rebalance?

Calendar-based rebalancing. Doesn't address rebalancing bands.

You do best if your rebalancing strategy has you rebalancing at the top of significant peaks and the bottom of significant valleys, which doesn't work unless you are a very good (lucky) market timer.
by rkhusky
Thu Aug 06, 2020 6:31 am
Forum: Personal Investments
Topic: FAANG Stocks
Replies: 27
Views: 2463

Re: FAANG Stocks

Are you maxing your 401k/IRA/HSA accounts?
by rkhusky
Thu Aug 06, 2020 6:24 am
Forum: Investing - Theory, News & General
Topic: How Can I Reduce Total Market's (VTI) Tech of 25%
Replies: 34
Views: 2395

Re: How Can I Reduce Total Market's (VTI) Tech of 25%

Amazon, Google, and Facebook are still included because they're no longer classified as "tech" :oops: I would definitely still include Google and Facebook as tech, but Amazon is tech/retail/logistics at this point. They sell real items, bring them to your house, and they even own a grocery store ch...
by rkhusky
Thu Aug 06, 2020 6:10 am
Forum: Personal Investments
Topic: RMD and Roth Conversion
Replies: 2
Views: 356

Re: RMD and Roth Conversion

It's probably a small effect if it's only for a year, but might as well take advantage of it.
by rkhusky
Wed Aug 05, 2020 3:34 pm
Forum: Investing - Theory, News & General
Topic: Target Date Funds doing it backwards?
Replies: 98
Views: 10411

Re: Target Date Funds doing it backwards?

Out of curiosity, I was looking at the 2020 Target fund. It's roughly a 50/50 AA and I could see that potentially being too aggressive for some going into retirement. But just depends on that individual's circumstances and preferences. Then they could choose the 2015 fund or the Target Income fund.
by rkhusky
Wed Aug 05, 2020 3:10 pm
Forum: Investing - Theory, News & General
Topic: Small Cap Value heads Rejoice !!!
Replies: 2011
Views: 159596

Re: Small Cap Value heads Rejoice !!!

MotoTrojan wrote:
Wed Aug 05, 2020 2:24 pm
Let's get back on topic... small-value (US and abroad) is crushin' it today!
IJS up 2% over VUG. Good, but not spectacular.
by rkhusky
Wed Aug 05, 2020 3:07 pm
Forum: Investing - Theory, News & General
Topic: Small Cap Value heads Rejoice !!!
Replies: 2011
Views: 159596

Re: Small Cap Value heads Rejoice !!!

I think for intuition purposes you could also roughly think about it like a PCA analysis on a dataset. I usually think of it as basis projection, where the you have a set of N-dimensional basis vectors, which consist of the return data for the various factors. One then projects the returns of the i...
by rkhusky
Wed Aug 05, 2020 11:14 am
Forum: Investing - Theory, News & General
Topic: When and how often do you rebalance?
Replies: 51
Views: 2362

Re: When and how often do you rebalance?

Unlike many, I have fairly tight rebalancing bands - about 1%. I check my AA frequently, especially after a big move or several days of smaller gains/losses. Computing my AA takes 5-10 minutes to login to various web sites and update my spreadsheet. Doing the rebalance itself takes another few minut...
by rkhusky
Wed Aug 05, 2020 10:26 am
Forum: Investing - Theory, News & General
Topic: Small Cap Value heads Rejoice !!!
Replies: 2011
Views: 159596

Re: Small Cap Value heads Rejoice !!!

vineviz wrote:
Wed Aug 05, 2020 9:59 am
But, like in the children's game of telephone, some people have learned a much distorted definition of the term to the point that they've got it's meaning almost completely twisted into reverse. I think you're one of those people.
From what I can see, I have lots and lots of company. Good day.
by rkhusky
Wed Aug 05, 2020 9:18 am
Forum: Investing - Theory, News & General
Topic: Small Cap Value heads Rejoice !!!
Replies: 2011
Views: 159596

Re: Small Cap Value heads Rejoice !!!

It’s your peculiarly obstinate misunderstanding that I was taking issue with. It is really your obstinance in denying other uses for "diversification". You insist that there is only one correct usage, which is actually only used by a small group of academics. The broader investing community obvious...
by rkhusky
Wed Aug 05, 2020 6:57 am
Forum: Personal Investments
Topic: Roth TSP + Traditional TSP
Replies: 8
Views: 494

Re: Roth TSP + Traditional TSP

Was thinking of contributing 5% to Trad for the match and then direct the rest towards Roth. Note that you don't need to use Traditional to get the match, but the match does go into Traditional. If you retire early, you can have many years to do Roth conversions at a potentially lower tax rate than...
by rkhusky
Wed Aug 05, 2020 6:42 am
Forum: Investing - Theory, News & General
Topic: Small Cap Value heads Rejoice !!!
Replies: 2011
Views: 159596

Re: Small Cap Value heads Rejoice !!!

In investing, "diversification" doesn't mean "own a bunch of different things that I think might be different". A statement such as "SCV funds are less diversified than total stock market funds" is one that can be empirically tested, because diversification is a quantifiable force. And the statemen...
by rkhusky
Wed Aug 05, 2020 6:19 am
Forum: Non-US Investing
Topic: Do you include your house in your portfolio?
Replies: 36
Views: 2798

Re: Do you include your house in your portfolio?

I don't include anything in my AA that I don't have a set allocation to and that I don't manage through rebalancing. So, I don't include pension, SS, house, cars, life insurance, or even cash. If I can't easily buy/sell it in a few days, it's not in my AA. If that is a Defined Benefit pension schem...
by rkhusky
Tue Aug 04, 2020 8:32 pm
Forum: Investing - Theory, News & General
Topic: Small Cap Value heads Rejoice !!!
Replies: 2011
Views: 159596

Re: Small Cap Value heads Rejoice !!!

In investing, "diversification" doesn't mean "own a bunch of different things that I think might be different". A statement such as "SCV funds are less diversified than total stock market funds" is one that can be empirically tested, because diversification is a quantifiable force. And the statemen...
by rkhusky
Tue Aug 04, 2020 7:36 pm
Forum: Investing - Theory, News & General
Topic: Small Cap Value heads Rejoice !!!
Replies: 2011
Views: 159596

Re: Small Cap Value heads Rejoice !!!

It is obvious that factor investing purifies a portfolio. It might be “obvious” but it’s not true. Oh? A small value fund holds something other than small value stocks? Some do, but what of it? You said “factor investing purifies a portfolio”, which is a gibberish statement that is in no way bolste...
by rkhusky
Tue Aug 04, 2020 6:01 pm
Forum: Investing - Theory, News & General
Topic: Small Cap Value heads Rejoice !!!
Replies: 2011
Views: 159596

Re: Small Cap Value heads Rejoice !!!

vineviz wrote:
Tue Aug 04, 2020 5:34 pm
rkhusky wrote:
Tue Aug 04, 2020 4:00 pm

It is obvious that factor investing purifies a portfolio.
It might be “obvious” but it’s not true.
Oh? A small value fund holds something other than small value stocks?
by rkhusky
Tue Aug 04, 2020 5:55 pm
Forum: Personal Consumer Issues
Topic: Average gas mileage- how accurate?
Replies: 35
Views: 1670

Re: Average gas mileage- how accurate?

I have manually kept track of mileage for years. There are significant fluctuations fill-up to fill-up (different shutoff points for pumps?), highway vs city differences, and seasonal patterns (eg lower in the winter).
by rkhusky
Tue Aug 04, 2020 5:06 pm
Forum: Investing - Theory, News & General
Topic: Small Cap Value heads Rejoice !!!
Replies: 2011
Views: 159596

Re: Small Cap Value heads Rejoice !!!

I agree that future does not have to look like the past. But that being said, I think it’s fair to say the market prices risk. Understanding that SV is more risky, rational investors should price those stocks appropriately. It is not clear that investors are entirely rational. The expectation that ...
by rkhusky
Tue Aug 04, 2020 4:40 pm
Forum: Investing - Theory, News & General
Topic: Small Cap Value heads Rejoice !!!
Replies: 2011
Views: 159596

Re: Small Cap Value heads Rejoice !!!

Compared to a TSM portfolio, one can tilt heavily to SV, decrease overall equity exposure, increase exposure to term, and keep portfolio expected return about constant. This would be a move in the direction of risk parity. So instead of considering the tilt in isolation as a search for increased re...
by rkhusky
Tue Aug 04, 2020 4:14 pm
Forum: Investing - Theory, News & General
Topic: Small Cap Value heads Rejoice !!!
Replies: 2011
Views: 159596

Re: Small Cap Value heads Rejoice !!!

I understand your point that SV only “purifies the portfolio”. After all, SV represents one corner of the market. But from a factor point of view, it provides net exposure across 3 unique and independent sources of return: market, size, value. And, as Acegolfer stated above, this includes risks oth...
by rkhusky
Tue Aug 04, 2020 4:00 pm
Forum: Investing - Theory, News & General
Topic: Small Cap Value heads Rejoice !!!
Replies: 2011
Views: 159596

Re: Small Cap Value heads Rejoice !!!

Small Value stocks are not more similar to each other than to Large Value, Small Growth and Large Growth? They are not more correlated to each other than to the other sectors? That seems like the kind of detail you probably should have known before you made the claim that factor investing "purifies...
by rkhusky
Tue Aug 04, 2020 3:26 pm
Forum: Investing - Theory, News & General
Topic: Small Cap Value heads Rejoice !!!
Replies: 2011
Views: 159596

Re: Small Cap Value heads Rejoice !!!

Random Walker wrote:
Tue Aug 04, 2020 2:36 pm
Size and value represent unique and independent risks from TSM and from each other.
Large minus Small and Value minus Growth are approximately independent, but Small and Value are not independent of each other or the market.
by rkhusky
Tue Aug 04, 2020 3:24 pm
Forum: Investing - Theory, News & General
Topic: Small Cap Value heads Rejoice !!!
Replies: 2011
Views: 159596

Re: Small Cap Value heads Rejoice !!!

I’m a big believer in MPT, combining more uncorrelated assets to improve portfolio efficiency. What's interesting is that factor investing does not combine uncorrelated assets, it purifies the portfolio such that the remaining assets have increased similarity and are more correlated. Yeah, that’s f...
by rkhusky
Tue Aug 04, 2020 3:12 pm
Forum: Investing - Theory, News & General
Topic: Small Cap Value heads Rejoice !!!
Replies: 2011
Views: 159596

Re: Small Cap Value heads Rejoice !!!

Random Walker wrote:
Tue Aug 04, 2020 9:12 am
I’m a big believer in MPT, combining more uncorrelated assets to improve portfolio efficiency.
What's interesting is that factor investing does not combine uncorrelated assets, it purifies the portfolio such that the remaining assets have increased similarity and are more correlated.
by rkhusky
Tue Aug 04, 2020 12:49 pm
Forum: Personal Investments
Topic: Specific date range return on VTSAX
Replies: 8
Views: 666

Re: Specific date range return on VTSAX

You could also use Yahoo, but Morningstar might be easier.
https://finance.yahoo.com/quote/VTSAX/h ... equency=1d

The adjusted close incorporates dividends. I'm getting a 38.3% increase.
by rkhusky
Tue Aug 04, 2020 12:41 pm
Forum: Personal Investments
Topic: Minor AA reallocation
Replies: 5
Views: 352

Re: Minor AA reallocation

Just use one that you already have. Are you planning to keep the funds that you have (e.g. you might want to divest of EDV and VCLT as you get older)? If not, put it in one that you plan to keep.
by rkhusky
Tue Aug 04, 2020 9:54 am
Forum: Non-US Investing
Topic: Do you include your house in your portfolio?
Replies: 36
Views: 2798

Re: Do you include your house in your portfolio?

I don't include anything in my AA that I don't have a set allocation to and that I don't manage through rebalancing. So, I don't include pension, SS, house, cars, life insurance, or even cash. If I can't easily buy/sell it in a few days, it's not in my AA.
by rkhusky
Tue Aug 04, 2020 6:35 am
Forum: Investing - Theory, News & General
Topic: Vanguard "sunsetting" CFP consultations
Replies: 107
Views: 8409

Re: Vanguard "sunsetting" CFP consultations

Vanguard gets similar or higher rankings in customer surveys as other brokerages. Bogleheads are not average investors (multimillionaires that complain about not getting free tax software anymore).
by rkhusky
Mon Aug 03, 2020 8:45 pm
Forum: Investing - Theory, News & General
Topic: Large Cap Growth has beat Large Cap Value
Replies: 17
Views: 1231

Re: Large Cap Growth has beat Large Cap Value

Nicolas wrote:
Mon Aug 03, 2020 7:24 pm
And “growthy” companies are more likely those that produce things or services that you don’t really need but are nice to have.
Depends on your definition of “need”. Many people would rather give up their spouse than their smartphone.
by rkhusky
Mon Aug 03, 2020 8:38 pm
Forum: Investing - Theory, News & General
Topic: So the stock market is forward looking. How forward?
Replies: 23
Views: 2084

Re: So the stock market is forward looking. How forward?

alex_686 wrote:
Mon Aug 03, 2020 5:42 pm
Further than that and speculation begins to kick in. At that point you just slap on a P/E multiplier and call it a day.
10 years is a long time. Sure, many companies plan that far out. But I wonder how accurate the predictions are. I wonder what analysts in 2010 were saying about 2020?
by rkhusky
Mon Aug 03, 2020 8:28 pm
Forum: Personal Investments
Topic: Converting traditional 401k to ROTH 401k in the same tax year
Replies: 11
Views: 628

Re: Converting traditional 401k to ROTH 401k in the same tax year

Do want to convert to Roth IRA or Roth 401k?
by rkhusky
Mon Aug 03, 2020 5:38 pm
Forum: Personal Investments
Topic: Switching from Target Retirement to 3-Fund Portfolio
Replies: 3
Views: 450

Re: Switching from Target Retirement to 3-Fund Portfolio

Is there a more tax-efficient bond fund to hold in my taxable account instead? Tax-exempt bonds are more tax efficient, but also generally return less. So, the answer depends on your tax rate. The solution also depends on the yield of the bonds. If the yield is small, having them in taxable is not ...
by rkhusky
Mon Aug 03, 2020 2:56 pm
Forum: Personal Investments
Topic: Vanguard Total Percentage Gain/Loss
Replies: 7
Views: 400

Re: Vanguard Total Percentage Gain/Loss

For the life of me I can't find on the Vanguard website to see the total percentage gain/loss for a specific etf/mutual fund that I currently own. Does the Vanguard website omit this or am I just not looking in the right place? Are you looking for your personal gain/loss taking into account your pu...
by rkhusky
Mon Aug 03, 2020 12:57 pm
Forum: Investing - Theory, News & General
Topic: So the stock market is forward looking. How forward?
Replies: 23
Views: 2084

Re: So the stock market is forward looking. How forward?

It must depend on who is doing the buying and selling and who holds the majority of stock. If day traders do most of the trading and hold the majority of stock, then the market is not very forward looking. If long term investors do most of the trading and hold the majority of stocks, then the market...
by rkhusky
Mon Aug 03, 2020 6:17 am
Forum: Personal Investments
Topic: How to remove non deductible contribution from roll over IRA
Replies: 18
Views: 763

Re: How to remove non deductible contribution from roll over IRA

Note that you don't have to worry about the earnings, just the contribution. You'll have to pay tax on the earnings, which are tax-deferred in a Traditional IRA.
by rkhusky
Mon Aug 03, 2020 6:10 am
Forum: Personal Investments
Topic: TSP Allocation Advice @ 46
Replies: 10
Views: 1156

Re: TSP Allocation Advice @ 46

TSP tends to be on the conservative side, so also check out the 2040 and 2045 allocations to see if they are a better fit. This is changing. The TSP set a new glidepath, but only uses it now for 2055 and later funds. The existing 2030, 2040, and 2050 funds will keep their current allocation until t...
by rkhusky
Sun Aug 02, 2020 7:48 pm
Forum: Personal Investments
Topic: What bonds in taxable
Replies: 12
Views: 1035

Re: What bonds in taxable

Int Tax Exempt would be fine. So would Total Bond.

75/25 is rather aggressive for a 70 year old, unless she specifically wants to invest for heirs. 30/70 - 50/50 would be more in line with target date averages.
by rkhusky
Sun Aug 02, 2020 5:18 pm
Forum: Personal Investments
Topic: Soon to be maxing TSP, what to store in taxable?
Replies: 25
Views: 1308

Re: Soon to be maxing TSP, what to store in taxable?

anon_investor wrote:
Sun Aug 02, 2020 4:58 pm
Blue456 wrote:
Sun Aug 02, 2020 4:55 pm
rkhusky wrote:
Sun Aug 02, 2020 4:46 pm
Bonds and stocks in TSP and stocks in Roth IRA, then stocks in taxable.
Income too high for Roth IRA. Traditional IRAs which I will be trying to roll into TSP.
Do a backdoor roth!
Needs to wait until he rolls tIRA into TSP, due to pro-rata rule.