Search found 1757 matches

by pascalwager
Sun May 31, 2020 9:42 pm
Forum: Investing - Theory, News & General
Topic: Index Investing and the U.S.-China Great Power Struggle
Replies: 54
Views: 2741

Re: Index Investing and the U.S.-China Great Power Struggle

I've developed some specific concerns about China recently (share dilution, trade conflicts, etc.). At one point I was ready to exit China investing, but I determined that China is only 2.4% of my overall portfolio (stocks and bonds). If it rises above 3%, I might take action to reduce it, such as e...
by pascalwager
Sun May 31, 2020 1:19 am
Forum: Personal Finance (Not Investing)
Topic: Calculating Capital Gains Taxable Amount
Replies: 22
Views: 1384

Re: Calculating Capital Gains Taxable Amount

I figured out my error when using the average cost method. I was using the total fund cost basis rather than the cost basis for the proceeds shares. So, I no longer think there are different average cost method versions, just one as far as I know.
by pascalwager
Sat May 30, 2020 5:02 pm
Forum: Personal Finance (Not Investing)
Topic: Calculating Capital Gains Taxable Amount
Replies: 22
Views: 1384

Re: Calculating Capital Gains Taxable Amount

I did the transactions and checked the Schwab realized gains and calculations as follows: Gains = Proceeds - cost basis The cost basis was greater than the proceeds, so the gains were negative, both long-term and short-term. Does that mean the transactions won't be taxed? You must have had some sha...
by pascalwager
Sat May 30, 2020 4:52 pm
Forum: Personal Finance (Not Investing)
Topic: Calculating Capital Gains Taxable Amount
Replies: 22
Views: 1384

Re: Calculating Capital Gains Taxable Amount

What is your cost basis method for the fund ? If you didn't select one, what is the default method. Often it is average cost basis. When were the shares purchased.........are they covered or non-covered........the broker will report the cost basis of the sold shares to you and IRS if covered. The b...
by pascalwager
Fri May 29, 2020 4:20 pm
Forum: Personal Finance (Not Investing)
Topic: Calculating Capital Gains Taxable Amount
Replies: 22
Views: 1384

Re: Calculating Capital Gains Taxable Amount

I'll have to step away from this thread because I do not really understand how you could have a capital loss in all of these funds if you initially bought them 25 years ago have not really bought more shares except for reinvesting dividends and minor rebalancing until 2011. Things just don't make d...
by pascalwager
Thu May 28, 2020 9:36 pm
Forum: Personal Finance (Not Investing)
Topic: Calculating Capital Gains Taxable Amount
Replies: 22
Views: 1384

Re: Calculating Capital Gains Taxable Amount

But which fund did you sell with average cost per share below the selling price? I consider bonds in taxable to be tax inefficient for me and they take away room for stocks in taxable that I can do tax-loss harvesting. OTOH, maybe bonds will drop and they can be tax-loss harvested in the near futur...
by pascalwager
Thu May 28, 2020 9:30 pm
Forum: Personal Finance (Not Investing)
Topic: Calculating Capital Gains Taxable Amount
Replies: 22
Views: 1384

Re: Calculating Capital Gains Taxable Amount

But which fund did you sell with average cost per share below the selling price? I consider bonds in taxable to be tax inefficient for me and they take away room for stocks in taxable that I can do tax-loss harvesting. OTOH, maybe bonds will drop and they can be tax-loss harvested in the near futur...
by pascalwager
Thu May 28, 2020 6:34 pm
Forum: Personal Finance (Not Investing)
Topic: Calculating Capital Gains Taxable Amount
Replies: 22
Views: 1384

Re: Calculating Capital Gains Taxable Amount

If average cost per share was used (and it was), then ALL the shares could be sold at a loss if ANY of the shares were sold at a loss. Time to tax-loss harvest is what I would say. :) It is not that this fund was a poor investment necessarily, but it was likely not a tax-efficient investment and th...
by pascalwager
Thu May 28, 2020 6:09 pm
Forum: Personal Finance (Not Investing)
Topic: Calculating Capital Gains Taxable Amount
Replies: 22
Views: 1384

Re: Calculating Capital Gains Taxable Amount

I did the transactions and checked the Schwab realized gains and calculations as follows: Gains = Proceeds - cost basis The cost basis was greater than the proceeds, so the gains were negative, both long-term and short-term. Does that mean the transactions won't be taxed? You must have had some sha...
by pascalwager
Thu May 28, 2020 2:34 pm
Forum: Personal Finance (Not Investing)
Topic: Calculating Capital Gains Taxable Amount
Replies: 22
Views: 1384

Re: Calculating Capital Gains Taxable Amount

I did the transactions and checked the Schwab realized gains and calculations as follows:

Gains = Proceeds - cost basis

The cost basis was greater than the proceeds, so the gains were negative, both long-term and short-term.

Does that mean the transactions won't be taxed?
by pascalwager
Tue May 26, 2020 7:05 pm
Forum: Personal Finance (Not Investing)
Topic: Calculating Capital Gains Taxable Amount
Replies: 22
Views: 1384

Re: Calculating Capital Gains Taxable Amount

What is your cost basis method for the fund ? If you didn't select one, what is the default method. Often it is average cost basis. When were the shares purchased.........are they covered or non-covered........the broker will report the cost basis of the sold shares to you and IRS if covered. The b...
by pascalwager
Tue May 26, 2020 2:23 am
Forum: Investing - Theory, News & General
Topic: Taxable Account - a Swiss Army Knife for Savers
Replies: 42
Views: 5670

Re: Taxable Account - a Swiss Army Knife for Savers

As a retiree, my preferences of where I want my money to BE is as follows: BEST: Roth IRA BETTER: Taxable account (not so) GOOD: Traditional IRA Everything in a ROTH is mine , tax free. I only pay taxes on gains in a taxable account. I pay max tax on everything taken out of a traditional IRA. I mig...
by pascalwager
Tue May 26, 2020 1:13 am
Forum: Personal Finance (Not Investing)
Topic: Calculating Capital Gains Taxable Amount
Replies: 22
Views: 1384

Re: Calculating Capital Gains Taxable Amount

What is your cost basis method for the fund ? If you didn't select one, what is the default method. Often it is average cost basis. When were the shares purchased.........are they covered or non-covered........the broker will report the cost basis of the sold shares to you and IRS if covered. The b...
by pascalwager
Tue May 26, 2020 1:04 am
Forum: Personal Finance (Not Investing)
Topic: Calculating Capital Gains Taxable Amount
Replies: 22
Views: 1384

Re: Calculating Capital Gains Taxable Amount

I'm considering doing some rebalancing in a taxable account. Stock fund market value = $93,463 Fund cost basis = $78,793 Capital gain = $14,670 Fund sale = $14,858 What is the taxable amount (not the actual tax)? How do you calculate it? I bought the fund in 1995, mainly a couple initial lump sums,...
by pascalwager
Mon May 25, 2020 10:54 pm
Forum: Personal Finance (Not Investing)
Topic: Calculating Capital Gains Taxable Amount
Replies: 22
Views: 1384

Calculating Capital Gains Taxable Amount

I'm considering doing some rebalancing in a taxable account.

Stock fund market value = $93,463
Fund cost basis = $78,793
Capital gain = $14,670
Fund sale = $14,858

What is the taxable amount (not the actual tax)? How do you calculate it?
by pascalwager
Sun May 24, 2020 10:18 pm
Forum: Investing - Theory, News & General
Topic: Taxable Account - a Swiss Army Knife for Savers
Replies: 42
Views: 5670

Re: Taxable Account - a Swiss Army Knife for Savers

A retiree, I've had taxable accounts for a long time: local bank checking/savings, US Treasury, Charles Schwab, and Vanguard. Bank and Treasury were the oldest and allowed me to lump-sum into a DFA stock portfolio at Schwab in 1995. Then, after contributing to the max at work (deferred comp) and ROT...
by pascalwager
Sat May 23, 2020 12:07 am
Forum: Investing - Theory, News & General
Topic: Who's right about the future? Stock or Bond market?
Replies: 50
Views: 4467

Re: Who's right about the future? Stock or Bond market?

My worthless opinion is that the S&P 500 should not be higher than last October, when the unemployment rate was 3.6% and there was no pandemic. Yet here we are. Perhaps people are betting that the government simply won't allow the market to crash. In which case, earnings don't really matter and yes...
by pascalwager
Fri May 22, 2020 4:31 pm
Forum: Investing - Theory, News & General
Topic: The Three-Fund Portfolio
Replies: 2835
Views: 1856773

Re: The Three-Fund Portfolio

I'm considering a personal revision to the 3-funder: replacing total int'l with developed markets. I don't want to invest in emerging markets anymore and EM is a part of total int'l. Also, as a retiree without SS, I want to include a TIPS fund and already do. So, my portfolio is going to look like t...
by pascalwager
Thu May 21, 2020 9:29 pm
Forum: Investing - Theory, News & General
Topic: Emerging Market Stocks Funds too exposed to China
Replies: 27
Views: 2227

Re: Emerging Market Stocks Funds too exposed to China

Are there any EM funds/ETFs with less exposure to China? Most are over 30% of the fund Vanguard EM Fund is at 43% China right now. Vanguard Total Int'l Stock Fund EM portion is at 43% China. DFA EM Fund is at 30% China. I'm getting the impression that China investing is silly. Turns out China is on...
by pascalwager
Wed May 20, 2020 8:59 pm
Forum: Investing - Theory, News & General
Topic: Emerging Market Stocks Funds too exposed to China
Replies: 27
Views: 2227

Re: Emerging Market Stocks Funds too exposed to China

Always passive wrote:
Wed May 20, 2020 2:30 am
Are there any EM funds/ETFs with less exposure to China? Most are over 30% of the fund
Vanguard EM Fund is at 43% China right now.
Vanguard Total Int'l Stock Fund EM portion is at 43% China.
DFA EM Fund is at 30% China.

I'm getting the impression that China investing is silly.
by pascalwager
Wed May 20, 2020 3:12 pm
Forum: Investing - Theory, News & General
Topic: Dr. Malkiel: “I believe that investors need to put more China into their portfolios“
Replies: 138
Views: 8864

Re: Dr. Malkiel: “I believe that investors need to put more China into their portfolios“

Vanguard Total World Stock Fund has 4.3% China and 10.1% EM. So that's China = 43% of the EM portion of TWS. Vanguard EM Fund has 43% China. Vanguard Total Int'l Stock Fund has 10.1% China and 23.5% EM. So that's China = 43% of the EM portion of TWS. My DFA EM Fund has 30% China. Vanguard seems to ...
by pascalwager
Wed May 20, 2020 2:40 pm
Forum: Investing - Theory, News & General
Topic: Dr. Malkiel: “I believe that investors need to put more China into their portfolios“
Replies: 138
Views: 8864

Re: Dr. Malkiel: “I believe that investors need to put more China into their portfolios“

Chinese companies also have a high debt load. From: https://www.bloomberg.com/news/articles/2020-03-29/china-s-corporate-deleveraging-campaign-may-be-set-back-by-years China’s nonfinancial corporate debt accounted for 156.7% of the country’s gross domestic product as of the third quarter of last ye...
by pascalwager
Thu May 14, 2020 8:57 pm
Forum: Investing - Theory, News & General
Topic: Reacting to low interest rates
Replies: 80
Views: 5953

Re: Reacting to low interest rates

I already have 2+ years in bonds as well. Triple digit golfer, Why do you think that the stock and the bond cannot drop at the same time? CASH is a separate asset class. Diversification is a good thing. In any case, I do not care about the low-interest rate and/ow low expected return. There will be...
by pascalwager
Wed May 13, 2020 10:18 pm
Forum: Investing - Theory, News & General
Topic: Reacting to low interest rates
Replies: 80
Views: 5953

Re: Reacting to low interest rates

I already have 2+ years in bonds as well. Triple digit golfer, Why do you think that the stock and the bond cannot drop at the same time? CASH is a separate asset class. Diversification is a good thing. In any case, I do not care about the low-interest rate and/ow low expected return. There will be...
by pascalwager
Wed May 13, 2020 4:53 pm
Forum: Investing - Theory, News & General
Topic: Why is total market weighted index best?
Replies: 61
Views: 4299

Re: Why is total market weighted index best?

While I totally buy into indexing, and generally buy into market weighting, what is the positive / theoretical reason why market weighting is the best choice, in terms of risk adjusted equity returns (let's stick with domestic for this argument) I understand the counter positive arguments - why not...
by pascalwager
Mon May 11, 2020 10:15 pm
Forum: Investing - Theory, News & General
Topic: [Are American markets likely to outperform INTL]
Replies: 237
Views: 16089

Re: [Are American markets likely to outperform INTL]

As usual, we see two camps forming: 1) People who think markets are relatively efficient, or at least better at pricing global equities than we are as individuals. 2) People who can write novel-length posts about why the US can, should and will offer greater return with less risk. I'm clearly in th...
by pascalwager
Mon May 11, 2020 10:07 pm
Forum: Investing - Theory, News & General
Topic: All small cap international
Replies: 56
Views: 3495

Re: All small cap international

I've owned a DFA international small cap fund since 1995. It's about 10% of my int'l equities. Generally speaking, it hasn't shown a pulse since I bought it in 1995, so I guess you could say it does provide diversification versus US large caps.
by pascalwager
Thu May 07, 2020 10:57 pm
Forum: Investing - Theory, News & General
Topic: [Are American markets likely to outperform INTL]
Replies: 237
Views: 16089

Re: [Are American markets likely to outperform INTL]

As usual, we see two camps forming: 1) People who think markets are relatively efficient, or at least better at pricing global equities than we are as individuals. 2) People who can write novel-length posts about why the US can, should and will offer greater return with less risk. I'm clearly in th...
by pascalwager
Wed May 06, 2020 11:29 pm
Forum: Investing - Theory, News & General
Topic: [Are American markets likely to outperform INTL]
Replies: 237
Views: 16089

Re: [Are American markets likely to outperform INTL]

dmcmahon wrote[; Read the Christine Benz interview. Currency doesn't explain the performance gap. Nor does the sector mix. Nor multiple expansion. EPS growth accounts for most of it, said the interviewee who crunched the data. Make of it what you will: https://www.morningstar.com/articles/96 ... av...
by pascalwager
Wed May 06, 2020 11:18 pm
Forum: Investing - Theory, News & General
Topic: [Are American markets likely to outperform INTL]
Replies: 237
Views: 16089

Re: [Are American markets likely to outperform INTL]

Having made that point, the interview ends with a piece of advice for investors going forward. Don't expect this trend to continue forever. Instead consider rebalancing now from US winners into INTL losers. It's basically the same advice we've been hearing from multiple experts for most of the past...
by pascalwager
Wed May 06, 2020 11:05 pm
Forum: Investing - Theory, News & General
Topic: [Are American markets likely to outperform INTL]
Replies: 237
Views: 16089

Re: [Are American markets likely to outperform INTL]

As usual, we see two camps forming: 1) People who think markets are relatively efficient, or at least better at pricing global equities than we are as individuals. 2) People who can write novel-length posts about why the US can, should and will offer greater return with less risk. I'm clearly in th...
by pascalwager
Tue May 05, 2020 11:19 pm
Forum: Investing - Theory, News & General
Topic: [Are American markets likely to outperform INTL]
Replies: 237
Views: 16089

Re: [Are American markets likely to outperform INTL]

It seems to me that some obvious trends have been in place for a while: Population growth is slowing The amount of energy and materials needed to produce a unit of GDP is dropping Information technology is remaking many aspects of the delivery of goods and services The world is becoming more interc...
by pascalwager
Tue Apr 21, 2020 9:24 pm
Forum: Personal Investments
Topic: Indexing fail?
Replies: 33
Views: 3008

Re: Indexing fail?

DrPayItBack wrote:
Mon Apr 20, 2020 5:20 pm
‘Index except for everything that has recently performed poorly’ is a pretty profoundly bad way to invest.
Not performed poorly, but expected to totally collapse and disappear. Devil's advocate.
by pascalwager
Tue Apr 21, 2020 9:21 pm
Forum: Personal Investments
Topic: Indexing fail?
Replies: 33
Views: 3008

Re: Indexing fail?

Thinking about adjusting the indexes in my portfolio. Why would I want any index that has cruise lines or airlines in it at this point going forward ? Just can’t see that this won’t change the way folks travel for business and leisure . Thoughts ? Even if that was a good idea (which it's not), wher...
by pascalwager
Mon Apr 20, 2020 3:16 am
Forum: US Chapters
Topic: Bogleheads community discussion - Coronavirus
Replies: 1653
Views: 72512

Re: Bogleheads community discussion - Coronavirus

In my largely rural county, a few dozen cases so far, 0 deaths. My supermarket is nearly empty of customers when I shop, weekend evenings. Yes, lots of changes in the store. My store doesn't require customer masks, but another one nearby does. I'm retired, so my life hasn't changed too much during t...
by pascalwager
Sat Apr 18, 2020 3:49 pm
Forum: Investing - Theory, News & General
Topic: Why do I have Vanguard Tax-Exempt funds?
Replies: 27
Views: 3056

Re: Why do I have Vanguard Tax-Exempt funds?

Generally, investors use tax-exempt bond funds when they have a non-low marginal income tax rate. I will add that my MIL hated to pay any taxes, so she used tax-exempt bonds even though she was in a 0% tax bracket because she didn't really understand taxes that well. ...but not, at least, in a vari...
by pascalwager
Sat Apr 18, 2020 2:46 pm
Forum: Investing - Theory, News & General
Topic: stable value fund vs VIPSX-which one safer during market turmoil?
Replies: 8
Views: 940

Re: stable value fund vs VIPSX-which one safer during market turmoil?

More than 80% of VIPSX's portfolio is government-issued inflation-index bonds. The interest rate risk associated with VIPSX is high , but in theory, even in the worst case scenario (e.g., financial market meltdown) Uncle Sam should still be able to make payments to bond holders and avoid default. N...
by pascalwager
Thu Apr 16, 2020 3:42 am
Forum: Personal Consumer Issues
Topic: Eating out after lock-down is lifted
Replies: 112
Views: 10198

Re: Eating out after lock-down is lifted

I virtually don't eat in restaurants anyway. I want complete control of food quality/ingredients and I don't like eating with other people. But there's no way I would eat in a restaurant in the near-term future until the virus has basically disappeared for a long period. Why am I afraid? I listened ...
by pascalwager
Wed Apr 15, 2020 10:34 pm
Forum: Investing - Theory, News & General
Topic: Do most Bogleheads TLH?
Replies: 55
Views: 3266

Re: Do most Bogleheads TLH?

Never done it myself and neither did my former investment company.
by pascalwager
Wed Apr 15, 2020 9:57 pm
Forum: Investing - Theory, News & General
Topic: My theory about FIRE
Replies: 419
Views: 30601

Re: My theory about FIRE

I am trying to FIRE by 52-55. I enjoy being a software engineer BUT There are lots of things I would rather be doing than working for someone else. There are a whole pile of employment related issues that are not my job but could make life miserable. Age discrimination when I am older. Lose my job ...
by pascalwager
Wed Apr 15, 2020 6:33 pm
Forum: Investing - Theory, News & General
Topic: whos' just about had it w/ SCV ?
Replies: 263
Views: 16402

Re: whos' just about had it w/ SCV ?

I owned the DFA Targeted Value Fund (deciles 6-10) for 24 years and finally sold when I did an account transfer to reduce account management fees. The new account lineup didn't offer any value funds. Otherwise I would still be satisfied to own it at it's original AA level. But I wouldn't be dumping ...
by pascalwager
Wed Apr 15, 2020 6:07 pm
Forum: Investing - Theory, News & General
Topic: Retirees: what are you doing with all the home equity?
Replies: 117
Views: 7433

Re: Retirees: what are you doing with all the home equity?

I own my home in an affordable housing area in the foothills. It's modest, probably has low curb appeal, but fully functional and habitable--far better than being homeless with money in the bank. So, for me, home equity is just a financial concept of little personal interest. Hopefully it can remain...
by pascalwager
Sun Apr 12, 2020 10:57 pm
Forum: Investing - Theory, News & General
Topic: Does anybody have an IPS that says 'I will sell all equities when X happens'?
Replies: 92
Views: 4037

Re: Does anybody have an IPS that says 'I will sell all equities when X happens'?

No, I don't need to. All of my stocks are in my risk portfolio. My riskless portfolio has a big slug of bonds, and minimal cash. If we enter a deep depression with widespread, global and domestic social unrest, I hope to survive for several years, at least, off the bonds. The stocks represent a long...
by pascalwager
Sun Apr 12, 2020 1:24 am
Forum: Investing - Theory, News & General
Topic: Emergency Fund - part of Asset Allocation?
Replies: 93
Views: 3116

Re: Emergency Fund - part of Asset Allocation?

I posted my thoughts on this in another thread earlier today. I hold an 80/20 asset allocation. But I include the cash in both my checking account and my savings account in the "bonds/fixed-income" portion. If someone told me that I MUST "mentally segment" my cash holdings in order to be a prudent ...
by pascalwager
Sat Apr 11, 2020 11:05 pm
Forum: Investing - Theory, News & General
Topic: Emergency Fund - part of Asset Allocation?
Replies: 93
Views: 3116

Re: Emergency Fund - part of Asset Allocation?

I posted my thoughts on this in another thread earlier today. I hold an 80/20 asset allocation. But I include the cash in both my checking account and my savings account in the "bonds/fixed-income" portion. If someone told me that I MUST "mentally segment" my cash holdings in order to be a prudent ...
by pascalwager
Sat Apr 11, 2020 6:01 pm
Forum: Investing - Theory, News & General
Topic: Stock and bond diversification - Swensen quote on "Investment Principles in Practice"
Replies: 18
Views: 1033

Re: Stock and bond diversification - Swensen quote on "Investment Principles in Practice"

DBR, Yes, an increase in equity makes sense for expected greater return. P I'm age 77 and have 55/45, stocks/bonds. I don't have SS and my pension CPI adjustment is 2% max (although the pension does have an 80% floor), so I do include TIPS: 53% of bonds. The rest is TBM, but mainly because of accou...
by pascalwager
Sat Apr 11, 2020 1:56 am
Forum: Investing - Theory, News & General
Topic: Rebalancing for retirees: one direction, both or none?
Replies: 12
Views: 1009

Re: Rebalancing for retirees: one direction, both or none?

I'm age 77 and 55/45 stocks/bonds. I rebalance in both directions. Remember, all portfolio assets have severe risks, not just stocks.
by pascalwager
Sat Apr 11, 2020 1:44 am
Forum: Investing - Theory, News & General
Topic: If you have a sizable portfolio, you don't need an emergency fund
Replies: 140
Views: 10345

Re: If you have a sizable portfolio, you don't need an emergency fund

There have been many recent topics explaining why everyone needs an emergency fund and why it should never be intermingled with other investments. Ultimately it really is nothing more than a semantic game whether or not the emergency fund is part of a portfolio. No, it's not "just semantics". A cle...
by pascalwager
Tue Apr 07, 2020 12:09 am
Forum: Personal Investments
Topic: Seasoned Bogleheads; What 3 Things Have You Done Financially Related to the Economy Recently
Replies: 112
Views: 11020

Re: Seasoned Bogleheads; What 3 Things Have You Done Financially Related to the Economy Recently

I did a large rebalance ($120k) from TBM into TSM and TIS in my variable annuity. This is the first large, dedicated manual rebalance I've ever done since first investing in stocks in 1995. For a long time I did have quarterly auto-rebalancing (including 2000, 2008) and have made smaller rebalances ...