Search found 4788 matches

by AlohaJoe
Tue Nov 12, 2019 4:26 am
Forum: Personal Investments
Topic: FIRE Roth Ladder Tax Question
Replies: 7
Views: 491

Re: FIRE Roth Ladder Tax Question

Paradise wrote:
Tue Nov 12, 2019 2:31 am
aren't you going to be hit with a fairly large tax bill for those first 5 years since you're getting income on your taxable withdraws
Why do you think this would be a large tax bill? Can you outline a concrete scenario where taxable withdrawals result in a lot of taxes?
by AlohaJoe
Tue Nov 12, 2019 12:43 am
Forum: Personal Finance (Not Investing)
Topic: Timeshare offer experience
Replies: 92
Views: 8823

Re: Timeshare offer experience

Posting my experience on a timeshare promotion as I know several Bogleheads have received the same offer. I got this offer in the mail a few months ago: 1. Five nights at the Westin Princeville Kauai (for the nights we went, worth $2,000) Heh, my dad was a timeshare salesman there a decade or so ag...
by AlohaJoe
Mon Nov 11, 2019 1:16 am
Forum: Personal Finance (Not Investing)
Topic: I think my friend is already financially independent (through a fantastic bitcoin investment), can you confirm?
Replies: 44
Views: 5849

Re: I think my friend is already financially independent (through a fantastic bitcoin investment), can you confirm?

$1.25M in real estate generating $7k in monthly rent before taxes and expenses ($84k annually) He is 34 years old, single, and his current annual expenses are $36k per year excluding taxes He is currently working at a job he hates making $55k pretax per year. I'm not sure why you're even asking abo...
by AlohaJoe
Sun Nov 10, 2019 10:47 pm
Forum: Personal Investments
Topic: 120K capital gains- what should i do?
Replies: 5
Views: 1310

Re: 120K capital gains- what should i do?

This will push us into 32% tax bracket I don't understand what you mean by this. Capital gains don't change the marginal rates you pay on your other income. And the capital gain won't be taxed at 32%. Maybe this isn't you but people who say things like "this will push us into the 32% tax bracket" o...
by AlohaJoe
Sat Nov 09, 2019 9:00 pm
Forum: Investing - Theory, News & General
Topic: Why no one created a etf of dividend free stocks
Replies: 32
Views: 2797

Re: Why no one created a etf of dividend free stocks

illumination wrote:
Sat Nov 09, 2019 8:58 pm
Could an ETF be structured where they own dividend paying companies but don't pay a dividend?
No, that's against the law. ETFs and mutual funds in the US are required to distribute dividends at least once a year.

Berkshire isn't an ETF or a mutual fund so they can do whatever they want.
by AlohaJoe
Sat Nov 09, 2019 10:34 am
Forum: Investing - Theory, News & General
Topic: Why no one created a etf of dividend free stocks
Replies: 32
Views: 2797

Re: Why no one created a etf of dividend free stocks

Ok fine. So why is there not a passive fund of those tech stocks + Berkshire? Plus all the small caps that don’t pay dividends. The only way small caps mean anything is if you move away from market cap weighting. Which is a thing that some people do but the further you get from a vanilla S&P 500 fu...
by AlohaJoe
Sat Nov 09, 2019 8:33 am
Forum: Investing - Theory, News & General
Topic: Why no one created a etf of dividend free stocks
Replies: 32
Views: 2797

Re: Why no one created a etf of dividend free stocks

There are so many etf s in the market. But no etf which is designed to hold only dividend free stocks. People sometimes ask this on Bogleheads. They seem to imagine that there are hundreds, maybe thousands of no-dividend stocks. That's not really true, especially when you look at things on a market...
by AlohaJoe
Sat Nov 09, 2019 3:27 am
Forum: Investing - Theory, News & General
Topic: Global PE10 and PS summary: Research Affiliates, Barclays, StarCapital
Replies: 73
Views: 9568

Re: International & US CAPE: Research Affiliates, Barclays, StarCapital

What % of equities do you have allocated to Int? 72% of my equity is non-US. I can be aggressive in changing my asset allocation with valuations. A younger version of me would probably have a year's expenses in I bonds and all the rest in EM value. Total Stock Market Index is up 29% since this post...
by AlohaJoe
Fri Nov 08, 2019 10:52 pm
Forum: Personal Consumer Issues
Topic: First time in Sydney, Australia
Replies: 12
Views: 689

Re: First time in Sydney, Australia

A few non-typical suggestions that are slightly more local. The CarriageWorks weekend farmers market. Belvoir Street theater company in Surry Hills Pilu at Freshwater (Sardinian restaurant) Picnic at Shark Island Cocktails and/or camping at Cockatoo Island Quarantine Station Ghost Tour at North Head...
by AlohaJoe
Wed Nov 06, 2019 11:00 pm
Forum: Investing - Theory, News & General
Topic: (NEW) WisdomTree 90/60 U.S. Balanced Fund
Replies: 325
Views: 34337

Re: (NEW) WisdomTree 90/60 U.S. Balanced Fund

I realized the trading volume of NTSX is shockingly small. I looked at the charts and sometimes there is 0 tradings in 30 minutes! Should this be a serious concern? Yes, no liquidity means you will get killed if you want to get out of this fund during a rough patch. If you want to own it plan on ho...
by AlohaJoe
Wed Nov 06, 2019 10:52 pm
Forum: Investing - Theory, News & General
Topic: The hidden cost of Fidelity’s ZERO funds
Replies: 66
Views: 5561

Re: The hidden cost of Fidelity’s ZERO funds

Does paying out dividends less often translate into a form of cash drag? Not really. (But you can check by seeing how the fund tracks against its index.) Most funds will hold cash but then buy futures & derivates to offset the cash drag. Taking a look at Vanguard's TSM as an example: It the annual ...
by AlohaJoe
Wed Nov 06, 2019 10:37 pm
Forum: Personal Investments
Topic: Will we be OK at 3% WR?
Replies: 261
Views: 16650

Re: Will we be OK at 3% WR?

There have been numerous studies of SWR in various countries as well as globally invested, as well as numerous discussion on this forum about them. US results are near the top. Almost all the countries with low SWR are limited by years where the country was bombed to near oblivion. To elaborate on ...
by AlohaJoe
Wed Nov 06, 2019 12:45 am
Forum: Personal Investments
Topic: Vanguard suggesting I move to ETF's
Replies: 40
Views: 3633

Re: Vanguard suggesting I move to ETF's

RubyTuesday wrote:
Tue Nov 05, 2019 5:43 pm
pros of mutual
2. purchase at the nav (net asset value)
3. sell at the nav
Why is the NAV assumed to be correct and the market price assumed to be wrong?

Anyway, if an ETF investor buys below NAV and then sells above NAV, they probably aren't going to consider these "pros of mutual funds".
by AlohaJoe
Tue Nov 05, 2019 11:18 pm
Forum: Investing - Theory, News & General
Topic: Robinhood, Heading for a Trainwreck?
Replies: 41
Views: 5384

Re: Robinhood, Heading for a Trainwreck?

TheAccountant wrote:
Tue Nov 05, 2019 4:16 pm
In this case it is the other way around (investors lost Robinhood money.)
No, they lost their own money. They just borrowed it from Robinhood. If you did a cash out refinance of your home, then went to Vegas and gambled it all away, would you say you had "lost the mortgage company's money"?
by AlohaJoe
Tue Nov 05, 2019 10:09 pm
Forum: Investing - Theory, News & General
Topic: Saudi Aramco, a microcosm of International Equities issues.
Replies: 26
Views: 1442

Re: Saudi Aramco, a microcosm of International Equities issues.

1.5 Trillion is 3.69% of the World Equity Portfolio if you were to hold at global market cap--Vanguard World. It would be a whopping 8.09% of your international equity allocation, if held at market weight. Nope. Indexes are based on free float. They are floating only about 1% of the company. So it ...
by AlohaJoe
Tue Nov 05, 2019 9:24 pm
Forum: Forum Issues and Administration
Topic: [Admin] tinypic (picture hosting) website is gone
Replies: 16
Views: 1584

Re: [Admin] tinypic (picture hosting) website is gone

At first, it used to bother me and I attempted to restore some of them from original copies that I'd retained — but later I found peace in just accepting it as an indication of the impermanence of life. Heh, I have had a similar journey and reached a similar conclusion. :-) By the way, I like your ...
by AlohaJoe
Mon Nov 04, 2019 11:34 am
Forum: Personal Investments
Topic: Interactive Brokers app: any way to get an alert when an ETF hits a rebalancing band?
Replies: 10
Views: 502

Re: [IBKR] Is it possible to set an alert/alarm when one ETF is reaching a certain "% of market value" ?

What does "% of market value" mean?

Did you open up the Alerts window on Trader Workstation and see if it does what you want?
by AlohaJoe
Mon Nov 04, 2019 10:51 am
Forum: Investing - Theory, News & General
Topic: Interactive Brokers (Best Kept Secret)
Replies: 176
Views: 51226

Re: Interactive Brokers (Best Kept Secret)

I understand IBKR pays interest on cash in your account over $10,000. What is recommended for cash balances under 10,000? Is there a money market fund that cash can be swept into? From IB's FAQ: FAQ: Do you offer a money market fund for unused cash? www.interactivebrokers.com/lib/cstools/chat?q=faq...
by AlohaJoe
Mon Nov 04, 2019 9:47 am
Forum: Investing - Theory, News & General
Topic: When DID the stock market recover from 1929?
Replies: 51
Views: 4778

Re: When DID the stock market recover from 1929?

--The memoir, The Great Depression, A Diary by Benjamin Roth, when he describes with mild surprise the way the public has suddenly become stock minded since the end of World War II. It was seen as, indeed really was, a fad, like crossword puzzles. The first big change were Liberty Bonds, the first ...
by AlohaJoe
Mon Nov 04, 2019 5:56 am
Forum: Investing - Theory, News & General
Topic: When DID the stock market recover from 1929?
Replies: 51
Views: 4778

Re: When DID the stock market recover from 1929?

But I think it is also reasonable to argue -- we see it every single day on Bogleheads -- that some people do look at recent gains, wonder how much is illusory, whether there's a bubble, whether their portfolio should be discounted in some way, or whether they should reduce their risk allocation ev...
by AlohaJoe
Mon Nov 04, 2019 2:01 am
Forum: Investing - Theory, News & General
Topic: When DID the stock market recover from 1929?
Replies: 51
Views: 4778

Re: When DID the stock market recover from 1929?

The main variables for an investor retiring is how much funds they have, their asset allocation, and their withdrawal rate. For example he may have 1m in a 50/50 portfolio and planning on a 4% withdrawal rate. What would the purpose of looking back at his portfolio returns in 2016, 2017, or 2018 be...
by AlohaJoe
Sun Nov 03, 2019 9:21 pm
Forum: Investing - Theory, News & General
Topic: Nominal or inflation-protected bonds?
Replies: 42
Views: 2751

Re: Nominal or inflation-protected bonds?

If all this is so, does it really make sense to go to all the trouble of building a lifecycle portfolio? It seems to me that you are not escaping probabilistic investing after all. You are correct that it doesn't escape probabilistic investing...but you miss the real reason :happy With deflation, y...
by AlohaJoe
Sat Nov 02, 2019 10:40 pm
Forum: Investing - Theory, News & General
Topic: Tax loss harvesting in M1
Replies: 13
Views: 1624

Re: Tax loss harvesting in M1

So if my holding has a $ loss per M1 then selling that dollar amount of the holding and buying an appropriate other holding in another account would be close to tax loss harvesting as using specific id? . Is this correct thinking? No, that wouldn't work. You need to go under the hood, as the other ...
by AlohaJoe
Sat Nov 02, 2019 10:06 pm
Forum: Personal Finance (Not Investing)
Topic: Best way for someone in Asia to receive funds?
Replies: 12
Views: 806

Re: Best way for someone in Asia to receive funds?

I don't quite follow this? Why is "setting up a transfer from a US bank a hassle"? In my experience, most people don't have a problem using a credit card on a web site to pay someone, as it's a common thing, but they do have a problem giving banking information. Ah, I see what you mean. Yeah being ...
by AlohaJoe
Sat Nov 02, 2019 4:02 pm
Forum: Personal Finance (Not Investing)
Topic: Wade Pfau's Safety First Book
Replies: 11
Views: 2009

Re: Wade Pfau's Safety First Book

Goodreads.com has reviews. I guess my concern is that some folks write that it ends up being a sales book for a company. Before I spend money on that, I'll just see the library copy. Maybe the reviews are cattywampus. I don't see any reviews on Goodreads https://www.goodreads.com/book/show/48273382...
by AlohaJoe
Sat Nov 02, 2019 3:54 pm
Forum: Personal Finance (Not Investing)
Topic: Best way for someone in Asia to receive funds?
Replies: 12
Views: 806

Re: Best way for someone in Asia to receive funds?

I've seen posts here suggesting using transferwise.com to send to a non-US bank account (funded from a US bank), which is certainly less expensive than a direct transfer from a US bank, although I imagine some people would regard setting up a transfer from a US bank as a hassle. I don't quite follo...
by AlohaJoe
Sat Nov 02, 2019 8:15 am
Forum: Personal Finance (Not Investing)
Topic: No out of network coverage
Replies: 61
Views: 3667

Re: No out of network coverage

Is having no out of network coverage a risk worth being concerned about? What are you concretely going to do about it beyond being concerned? Buy your own private insurance? Quit your job? I'm actually curious what you would do with the results of this thread. Has it reached the point where people ...
by AlohaJoe
Sat Nov 02, 2019 1:40 am
Forum: Personal Finance (Not Investing)
Topic: Interest from loans
Replies: 19
Views: 1124

Re: Interest from loans

I wouldn't think you'll get flagged, but you might. If so, I'm not sure you've done anything wrong. Be sure you're paying your taxes on the interest (which you seem to be doing), that you're compliant with any usury laws in your state. Here's a link that shows usury laws by state: https://www.cuna....
by AlohaJoe
Sat Nov 02, 2019 1:33 am
Forum: Personal Investments
Topic: Do You Discount Your Retirement Number In Bull Markets
Replies: 25
Views: 2411

Re: Do You Discount Your Retirement Number In Bull Markets

Do you reduce them to by say 20% to figure out a more realistic projection? I am retired and I effectively do something like this, but not through some arbitrary "reduce by 20%" number like that. I use 2 numbers from Mr. Market -- TIPS yields and P/E ratios. I use the 30-year real TIPS yield to cal...
by AlohaJoe
Fri Nov 01, 2019 10:59 pm
Forum: Personal Finance (Not Investing)
Topic: Interest from loans
Replies: 19
Views: 1124

Re: Interest from loans

Neither the bank nor the IRS are going to care.

Even if they did flag it...so what?
by AlohaJoe
Fri Nov 01, 2019 1:45 am
Forum: Non-US Investing
Topic: Australian expat living in Thailand (75 y.o.) - advice sought, new to investing
Replies: 2
Views: 442

Re: Australian expat living in Thailand (75 y.o.) - advice sought, new to investing

Pensions: 36,000 AUD /yr Cost of living in Thailand: 15,000/yr AUD equivalent (6,000/yr AUD equivalent more if/when apartment sold) If his spending is just 44% of his pension, then his portfolio and investing doesn't matter. He's living entirely off his pension. Even after he sells the apartment an...
by AlohaJoe
Mon Oct 28, 2019 10:30 am
Forum: Investing - Theory, News & General
Topic: Vanguard advertising
Replies: 14
Views: 1315

Re: Vanguard advertising

Advertising probably costs a lot less than you think and perhaps Vg advertising is actually less than before, but you didn't notice it before. As a percentage of Vg costs, I suspect advertising has actually decreased. I agree. I expect Vanguard is spending a lot less money on full-page ads in indus...
by AlohaJoe
Sun Oct 27, 2019 9:33 pm
Forum: Investing - Theory, News & General
Topic: Optimal asset allocation strategies for retirement & saving
Replies: 28
Views: 4117

Re: Optimal asset allocation strategies for retirement & saving

The trinity study utility function is more eager to take a position of 100% stocks or less than 50% stocks. Yep, it is exactly those big jumps that make me dislike the discrete utility functions. They are a bit too much black or white, leading to black or white asset allocations. "If the plan only ...
by AlohaJoe
Sat Oct 26, 2019 10:05 pm
Forum: Investing - Theory, News & General
Topic: Optimal asset allocation strategies for retirement & saving
Replies: 28
Views: 4117

Re: Optimal asset allocation strategies for retirement & saving

We define success as an ending value >= $1m and failure otherwise. The following figure displays the optimal asset allocation for a classic trinity study style retirement. Success is defined as a positive ending balance. When the goal is already certain, the optimizer chooses the safest possible as...
by AlohaJoe
Sat Oct 26, 2019 9:27 pm
Forum: Investing - Theory, News & General
Topic: Optimal asset allocation strategies for retirement & saving
Replies: 28
Views: 4117

Re: Optimal asset allocation strategies for retirement & saving

Similar work and references Forsyth and Vetzal, "Robust Asset Allocation for Long-Term Target-Based Investing". Looks at mv-optimal asset allocation for target wealth style retirement. SInce you only listed one reference I figured I should point out the work of Gordon Irlam who was the first person...
by AlohaJoe
Sat Oct 26, 2019 2:03 am
Forum: Investing - Theory, News & General
Topic: Anyone buying PG&E stock?
Replies: 60
Views: 5204

Re: Anyone buying PG&E stock?

aristotelian wrote:
Fri Oct 25, 2019 3:10 pm
Too big to fail. It's gotta be, right?
Why? Was GM too big to fail? How about Fannie & Freddie?

Just because the company gets propped up is no guarantee that shareholders don't get wiped out.
by AlohaJoe
Sat Oct 26, 2019 1:40 am
Forum: Non-US Investing
Topic: Using margin loan for house downpayment
Replies: 3
Views: 393

Re: Using margin loan for house downpayment

1) Would you consider a temporary margin loan instead of the bigger mortgage? I used a margin loan to pay for 100% of a house. Where I live there's not really a mortgage market -- most people pay cash -- and for a handful of reasons I didn't want to liquidate that much of my portfolio all at once. ...
by AlohaJoe
Fri Oct 25, 2019 10:51 pm
Forum: Personal Finance (Not Investing)
Topic: Who does your tax returns?
Replies: 103
Views: 5156

Re: Who does your tax returns?

For US taxes I do it myself by hand.

For Australian taxes I use the free government provided tax software.

For Vietnamese taxes I have an accountant.
by AlohaJoe
Thu Oct 24, 2019 7:49 am
Forum: Personal Consumer Issues
Topic: How to get quicker hot water
Replies: 45
Views: 2484

Re: How to get quicker hot water

I have small, instant hot water heaters installed in every bathroom in our house. You can easily go online and look up the prices. We paid under $100 each but your costs might vary.

It does what I expect it to do. Beyond that I'm not sure what you're looking for when you ask about "experience".
by AlohaJoe
Wed Oct 23, 2019 8:21 pm
Forum: Investing - Theory, News & General
Topic: Emerging Market Funds: They May Not Enhance Asset Allocation
Replies: 15
Views: 1811

Re: Emerging Market Funds: They May Not Enhance Asset Allocation

This article uses portfolio optimization techniques to determine optimal country allocation in an emerging market (EM) portfolio and compares the resulting performance to the performance of the MSCI Emerging Markets Index (MSCI EM Index) to test how large the spread is between the two returns. All ...
by AlohaJoe
Tue Oct 22, 2019 7:20 pm
Forum: Personal Investments
Topic: Leveraging Investment with Pledged Asset Loan
Replies: 48
Views: 2511

Re: Leveraging Investment with Pledged Asset Loan

Have you considered using futures? You get the most competitive financing rates. I thought futures didn't include dividends, since the future is only about the price index level? Is that not right? So you get a more competitive financing rate but lose ~2% of the total return? If you are someone who...
by AlohaJoe
Mon Oct 21, 2019 9:23 pm
Forum: Personal Investments
Topic: Which Type Of Order Do I Want?
Replies: 9
Views: 1003

Re: Which Type Of Order Do I Want?

cap396 wrote:
Mon Oct 21, 2019 8:48 pm
So, what type of order should I place in my traditional IRA account so that the order is executed when the price has gone UP to 32.63?
I think that's a buy stop order.

https://www.investopedia.com/terms/b/buystoporder.asp
by AlohaJoe
Mon Oct 21, 2019 9:19 pm
Forum: Personal Investments
Topic: Leveraging Investment with Pledged Asset Loan
Replies: 48
Views: 2511

Re: Leveraging Investment with Pledged Asset Loan

I don't have a fundamental problem with what you are proposing, but you need to answer a few questions for me: 1) What is the expected return of VTI for the next 10 years? 2) Is your cost of funds low enough to justify the risk for the dispersion of return outcomes? For me, I have a ~1.2mm mortgage...
by AlohaJoe
Mon Oct 21, 2019 8:32 pm
Forum: Personal Investments
Topic: Leveraging Investment with Pledged Asset Loan
Replies: 48
Views: 2511

Re: Leveraging Investment with Pledged Asset Loan

Tyler Aspect wrote:
Sat Oct 19, 2019 8:46 pm
The inverted yield curve is a probabilistic indicator of an economic down-turn in 2 years.
The yield curve isn't inverted anymore (it un-inverted? de-inverted? re-verted? on October 11), so everything is fine, right? 8-)
by AlohaJoe
Mon Oct 21, 2019 5:30 am
Forum: Personal Investments
Topic: High income earner waiting for a bear market to start investing
Replies: 119
Views: 12080

Re: High income earner waiting for a bear market to start investing

The market seems very inflated if you look at historical data. No it doesn't. The current P/E is 22.22. The average P/E for the past 19 years (2000-2019) is 25.60 The average P/E for the past 29 years (1990-2019) is 24.26 So it is currently below the average for the past 3 decades -- which is most ...
by AlohaJoe
Mon Oct 21, 2019 5:11 am
Forum: Non-US Investing
Topic: Help with brokers
Replies: 24
Views: 1658

Re: Help with brokers

Interactive Brokers doesn't charge $120/year anymore. https://ibkr.com/Lite Anyway, I'm pretty sure that Fidelity, Charles Schwab, and eTrade will all let you trade on foreign exchanges if you pay them money for it. Way to get a guy's hopes up :shock: ... AFAIK, IBKR Lite is only currently availabl...
by AlohaJoe
Mon Oct 21, 2019 3:28 am
Forum: Non-US Investing
Topic: Help with brokers
Replies: 24
Views: 1658

Re: Help with brokers

From what I have read here, my best choice for equities would be the Ireland based ETFs. However, the only broker I know that would let me buy these ETFs is Interactive Brokers, which charges a $120/year fee Interactive Brokers doesn't charge $120/year anymore. https://ibkr.com/Lite Anyway, I'm pre...
by AlohaJoe
Sun Oct 20, 2019 8:52 pm
Forum: Personal Finance (Not Investing)
Topic: Advice: Windfall Makes Working Worse Than Not Working
Replies: 70
Views: 9827

Re: Advice: Windfall Makes Working Worse Than Not Working

Changing residency is not that straight forward and California is very "grabby". Do you plan to come back at the end of the year? I am not sure how easy is to do it for short term. This would be my biggest question. If you plan to move back after one year, I think California would easily prove they...
by AlohaJoe
Fri Oct 18, 2019 8:41 pm
Forum: Investing - Theory, News & General
Topic: Unique withdrawal method
Replies: 65
Views: 6857

Re: Unique withdrawal method

You mean something besides SWR, VPW, PMT, Kitces ratcheting method, Guyton-Klinger decision rules, ERN's valuation method, 1/N, fixed % of portfolio, Gummy's sensible withdrawals, Taylor's withdraw more if your portfolio does well and less if it doesn't, spend only dividends, McClung's Prime Harves...
by AlohaJoe
Thu Oct 17, 2019 8:30 pm
Forum: Investing - Theory, News & General
Topic: Schwab to allow fractional stock trading (WSJ)
Replies: 36
Views: 4303

Re: Schwab to allow fractional stock trading (WSJ)

kosomoto wrote:
Thu Oct 17, 2019 2:29 pm
Fascinating - you would be able to equal weight the sp500 for zero commission and zero expense ratio.

I’m getting a bit excited thinking about creating my own indexes.
How much money do you plan on losing every quarter when you get front-run on index composition changes?