Search found 5219 matches

by rkhusky
Wed Aug 15, 2018 12:59 pm
Forum: Investing - Theory, News & General
Topic: "Don't Obsess About Expense Ratios"
Replies: 230
Views: 18483

Re: "Don't Obsess About Expense Ratios"

I think there is no question Vanguard will lower their fees. To what, I have no idea. They may lower them to zero and slightly raise fees on managed funds to make up the difference (though history shows that their fees tend to get lower over time, not higher). Vanguard’s philosophy is to have each ...
by rkhusky
Tue Aug 14, 2018 11:04 am
Forum: Investing - Help with Personal Investments
Topic: Optimal fixed income allocation for TSP users with a Roth IRA
Replies: 8
Views: 579

Re: Optimal fixed income allocation for TSP users with a Roth IRA

i think i should up the equity portion as well. as mentioned above, thinking of doing it when another correction comes along as for the downpay, probably way down the road, at least 2-3 years. i think i'm gonna put 30% in brokered CDs and the rest in an equity index. Why brokered CD's? Why not a bo...
by rkhusky
Tue Aug 14, 2018 10:45 am
Forum: Investing - Theory, News & General
Topic: New Vanguard Security Code Requirement [2FA: Two-factor authentication]
Replies: 184
Views: 11011

Re: New Vanguard Security Code Requirement [2FA: Two-factor authentication]

My browser deletes cookies whenever I quit. Vanguard must use something else besides cookies to identify the computer. Perhaps a browser fingerprint? Yes. I investigated and also asked. Forget the asked. He wasn't sure. With Internet Explorer resetting cookies triggers a new code requirement. Chrom...
by rkhusky
Tue Aug 14, 2018 10:34 am
Forum: Investing - Theory, News & General
Topic: New Vanguard Security Code Requirement [2FA: Two-factor authentication]
Replies: 184
Views: 11011

Re: New Vanguard Security Code Requirement [2FA: Two-factor authentication]

So, I think it's safe, and if your cookies get cleared or change browsers of computers, it's not a probkem. I keep seeing this cookies clear thing. I periodically clear cookies but have not had a 2FA problem. Either cookies are not an issue or I have screwed up somewhere. Help me. My browser delete...
by rkhusky
Tue Aug 14, 2018 10:05 am
Forum: Investing - Theory, News & General
Topic: It's not enough to mumble "Stay the Course"... INT'L Investing has been a disaster!
Replies: 265
Views: 15296

Re: It's not enough to mumble "Stay the Course"... INT'L Investing has been a disaster!

I think that OP's mindset is an excellent example of a major problem with 'buy-and-hold': it's very difficult for many people to implement it. The urge to do something after years of underperformance compared to another strategy is just too great for many. Those folks should invest in a target date...
by rkhusky
Tue Aug 14, 2018 8:29 am
Forum: Investing - Help with Personal Investments
Topic: Vanguard Investment strategies for already retired
Replies: 9
Views: 979

Re: Vanguard Investment strategies for already retired

What are the plans for the amount invested for the next 11 years? If the intent is to pull it out for a purchase, then it should be invested in something relatively safe. If the intent is to gradually pull it out for some extra living expenses or non-essentials, then one could invest more aggressive...
by rkhusky
Mon Aug 13, 2018 6:57 am
Forum: Investing - Theory, News & General
Topic: How can I use the Rising Equity Glide Path?
Replies: 61
Views: 3471

Re: How can I use the Rising Equity Glide Path?

Regarding Taylor's comment, a rising equity glidepath actually makes perfect sense in the light of sequence of returns risk, which is greatest at the point of retirement, not far into retirement. The idea that an 80 year old needs 80% bonds is old-fashioned indeed, for instance. It might work fine,...
by rkhusky
Sun Aug 12, 2018 8:48 pm
Forum: Investing - Theory, News & General
Topic: "Don't Obsess About Expense Ratios"
Replies: 230
Views: 18483

Re: "Don't Obsess About Expense Ratios"

... what I would like see Vanguard do is create Admiral shares of the Target Retirement funds, with perhaps a $25K or $50K minimum. I’ve always been baffled that there is no Admiral share class of the target risk or target date funds at Vanguard but apparently it’s a regulatory challenge in part. h...
by rkhusky
Sun Aug 12, 2018 7:12 am
Forum: Investing - Theory, News & General
Topic: "Don't Obsess About Expense Ratios"
Replies: 230
Views: 18483

Re: "Don't Obsess About Expense Ratios"

For someone in VTSMX or (even worse) saving to be in VTSMX, there is no reason to be there or doing that. They can take whatever they have less than $3,000 or $10,000 and get started growing it on Monday. If that person is so concerned about saving a few pennies, then they should move their money. ...
by rkhusky
Sat Aug 11, 2018 6:55 pm
Forum: Investing - Theory, News & General
Topic: "Don't Obsess About Expense Ratios"
Replies: 230
Views: 18483

Re: "Don't Obsess About Expense Ratios"

There is a substantial amount of assets in VTSMX. Those people are paying excessively for it, and they can pay much lower elsewhere. The ER for Investor shares is not excessive, it is very reasonable. Paying $14 or less per year is very reasonable for the web site access, basis tracking, tax forms,...
by rkhusky
Sat Aug 11, 2018 8:58 am
Forum: Investing - Theory, News & General
Topic: "Don't Obsess About Expense Ratios"
Replies: 230
Views: 18483

Re: "Don't Obsess About Expense Ratios"

I cannot see any argument why someone holding VTSMX (or probably any other Vanguard Investor Shares class with an equivalent lower cost option elsewhere) in an IRA should not immediately move it to Schwab or Fidelity or whoever else is significantly lower, although it is likely someone here will ma...
by rkhusky
Sat Aug 11, 2018 7:16 am
Forum: Investing - Theory, News & General
Topic: WSJ: When to Pick Mutual Fund over ETF?
Replies: 16
Views: 1592

Re: WSJ: When to Pick Mutual Fund over ETF?

Bill Bernstein suggests that using bond ETFs is not recommended as ETFs lack a mutual fund's requirement to redeem shares at NAV. In a liquidity crisis, the price of Bond ETF may drop way below the price of the underlying bonds and market makers may not able to use arbitrage effectively to keep the...
by rkhusky
Fri Aug 10, 2018 8:47 pm
Forum: Investing - Help with Personal Investments
Topic: VTHRX idea as Target Retirement funds
Replies: 9
Views: 672

Re: VTHRX idea as Target Retirement funds

Abk911 wrote:
Fri Aug 10, 2018 12:34 pm
What are preferred / popular vanguard options for retirement RIRA that you have seen folks use? i AM 40.
TR2045 looks like a reasonable choice since you are already using it in your 401k.
by rkhusky
Fri Aug 10, 2018 11:19 am
Forum: Investing - Help with Personal Investments
Topic: VTHRX idea as Target Retirement funds
Replies: 9
Views: 672

Re: VTHRX idea as Target Retirement funds

Thank you... if i am going aggressive with a retirement date plan then i relooked at some funds. i am also reading and digesting most of your views. i saw two funds form vanguard that are 3/5 on risk. VBINX and VSMGX... which one would be a better fit based on the above strategy as they seem to hav...
by rkhusky
Fri Aug 10, 2018 8:46 am
Forum: Investing - Help with Personal Investments
Topic: VTHRX idea as Target Retirement funds
Replies: 9
Views: 672

Re: VTHRX idea as Target Retirement funds

You will be taking on a lot more risk than that of the typical 529 plans. A retirement account is expected to need to last 30+ years, while a college account will be spent in 4 or so years. Accordingly, Vanguard's Target Retirement accounts are about 50/50 stocks/bonds at the target date and glide t...
by rkhusky
Fri Aug 10, 2018 8:35 am
Forum: Investing - Theory, News & General
Topic: Vanguard Switch to Brokerage Accounts
Replies: 22
Views: 1886

Re: Vanguard Switch to Brokerage Accounts

3. Today I went online to transfer some funds from our joint account to a Vanguard individual 401(k) account--something I have done in the past. Today the transfer option was not available, and when I called Vanguard I was told that transfers were not allowed from the new brokerage accounts. I was ...
by rkhusky
Thu Aug 02, 2018 8:25 pm
Forum: Investing - Help with Personal Investments
Topic: Interesting TSP question
Replies: 17
Views: 1071

Re: Interesting TSP question

Also, make sure that you contribute enough in the final month to get the match. If you arrange to contribute just over the limit, you should be fine.
by rkhusky
Thu Aug 02, 2018 6:41 am
Forum: Investing - Theory, News & General
Topic: How Often to Adjust Target Asset Allocation
Replies: 10
Views: 792

Re: How Often to Adjust Target Asset Allocation

I changed my target allocations yearly in accordance with my chosen glide path, because I didn't have my spreadsheet set up to do it automatically.
by rkhusky
Tue Jul 31, 2018 6:47 pm
Forum: Personal Finance (Not Investing)
Topic: Consultant leaning toward 1099 instead of W2 and looking for advice
Replies: 32
Views: 2216

Re: Consultant leaning toward 1099 instead of W2 and looking for advice

The responsibility for classification is on the client/employer not the contractor/employee . If the IRS has determined workers were misclassified as contractors, it is entirely the employer's responsibility for the non-payment of employment taxes. I have never heard of a single negative consequenc...
by rkhusky
Tue Jul 31, 2018 12:59 pm
Forum: Personal Finance (Not Investing)
Topic: Consultant leaning toward 1099 instead of W2 and looking for advice
Replies: 32
Views: 2216

Re: Consultant leaning toward 1099 instead of W2 and looking for advice

The responsibility for classification is on the client/employer not the contractor/employee . If the IRS has determined workers were misclassified as contractors, it is entirely the employer's responsibility for the non-payment of employment taxes. I have never heard of a single negative consequenc...
by rkhusky
Tue Jul 31, 2018 12:55 pm
Forum: Investing - Help with Personal Investments
Topic: Bond Tent strategy and AA for early retirement
Replies: 3
Views: 345

Re: Bond Tent strategy and AA for early retirement

If stocks drop, you can rebalance in your tax-deferred account by selling bonds and buying stocks. You may also then be able to tax loss harvest in the taxable account. The main issue is whether you risk running out of money in your taxable account before reaching 59.5. You can withdraw Roth IRA con...
by rkhusky
Tue Jul 31, 2018 6:50 am
Forum: Personal Finance (Not Investing)
Topic: Consultant leaning toward 1099 instead of W2 and looking for advice
Replies: 32
Views: 2216

Re: Consultant leaning toward 1099 instead of W2 and looking for advice

The IRS has rules for determining whether you are an employee or a contractor (and potential penalties if the wrong one is chosen):
https://www.irs.gov/newsroom/understand ... esignation
by rkhusky
Tue Jul 31, 2018 6:45 am
Forum: Investing - Theory, News & General
Topic: No capital gains?
Replies: 4
Views: 564

Re: No capital gains?

Is it possible that there were no capital gains in my taxable account for all of 2017 for both the Vanguard Total International fund VTIAX and the Total Stock Market fund VTSAX fund? I did not trade anything in my taxable account last year. I did receive divident statements (1099-Div) but no other ...
by rkhusky
Sun Jul 22, 2018 11:14 am
Forum: Investing - Help with Personal Investments
Topic: Parking $$ for future tax payment
Replies: 12
Views: 975

Re: Parking $$ for future tax payment

All of this said, it'll be an all-cash deal and I'll have some significant CG taxes due in April. The question is: where does one safely park $3-4 million for the next 6 months? Do I split it up in $250k increments and put it in CD's, Money Market, or what else? Any concern about parking more than ...
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: 4546

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: 4
Views: 339

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: 4546

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: 1540

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: 1540

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: 1119

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: 3376

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: 957

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: 589

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: 474

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: 1586

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: 1465

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: 1527

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: 16805

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: 7312

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: 16805

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: 4628

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: 948

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: 9261

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: 9261

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: 9261

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: 786

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: 1028

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: 9261

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: 1794

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: 845

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.