Search found 4382 matches

by AlohaJoe
Wed May 22, 2019 9:35 am
Forum: Personal Finance (Not Investing)
Topic: Getting a margin loan - for a second house
Replies: 8
Views: 686

Re: Getting a margin loan - for a second house

The margin rate Merill is offering me is 4.35 while a second mortgage interest rate in 5.2. Interactive Brokers will offer you 3.59% for $250,000. You should probably consider using that instead. Thoughts , counter thoughts? What happens if markets drop 20%? What happens if rates go up to 5%? You s...
by AlohaJoe
Tue May 21, 2019 11:27 pm
Forum: Investing - Theory, News & General
Topic: Is there a FAANG ETF?
Replies: 37
Views: 2382

Re: Is there a FAANG ETF?

Hi, This might be a stupid question, but I was just curious is there an ETF that only has FAANG stocks? (Facebook, Apple, Amazon, Netflix, Google) Thanks. I typed "FAANG ETF" into Google and lots of answers. You might want to check there since you'll get answers to questions instead of people telli...
by AlohaJoe
Tue May 21, 2019 3:01 am
Forum: Investing - Theory, News & General
Topic: Vanguard ETFs, ranked by diversification benefit
Replies: 65
Views: 3944

Re: Vanguard ETFs, ranked by diversification benefit

But Estrada doesn't specify the type of bonds. Bonds here means "long-term government bonds". The exact maturity varies depending on data available for each country but is generally either 10 or 20 years. It also isn't constant. It isn't like "for Belgium we use a maturity of 10 years from 1900-201...
by AlohaJoe
Tue May 21, 2019 2:51 am
Forum: Investing - Theory, News & General
Topic: Vanguard ETFs, ranked by diversification benefit
Replies: 65
Views: 3944

Re: Vanguard ETFs, ranked by diversification benefit

pdavi21 wrote:
Mon May 20, 2019 9:55 pm
Do you see what I'm getting at here?
No. Could you just explain directly instead of offering an analogy?
by AlohaJoe
Mon May 20, 2019 3:31 am
Forum: Personal Finance (Not Investing)
Topic: completely freaked out about withdrawing from retirement accounts....
Replies: 57
Views: 6663

Re: completely freaked out about withdrawing from retirement accounts....

But I need to know, is this hesitancy to touch my retirement funds something that folks go through? Or do other people just get over it? Yes, it is extremely common. Some people get used to it, others don't. Some people bury themselves in learning about market history or investing to build up confi...
by AlohaJoe
Sat May 18, 2019 5:11 pm
Forum: Personal Finance (Not Investing)
Topic: At what NW do I have disposable income?
Replies: 85
Views: 5847

Re: At what NW do I have disposable income?

White Coat Investor wrote:
Sat May 18, 2019 2:02 pm
I don't know of a definition for disposable income.
I think it is anything that can fit in a garbage disposal. If it fits, it is disposable. Money is made of actually pretty tough stuff, so I guess once you get above 3 or 4 bills it'll clog up the machine.
by AlohaJoe
Fri May 17, 2019 3:20 am
Forum: Personal Finance (Not Investing)
Topic: Who’s as good as Schwab (Low brokerage fees + convenience of global ATMs)?
Replies: 8
Views: 824

Re: Who’s as good as Schwab (Low brokerage fees + convenience of global ATMs)?

Yes, Fidelity carries the zero expense ETFs, but their ATM withdrawals abroad are inferior. In what way are Fidelity ATM withdrawals abroad inferior? 1% foreign transaction fee I was under the impression that foreign ATM withdrawals are not a foreign transaction and there was no foreign transaction...
by AlohaJoe
Fri May 17, 2019 2:27 am
Forum: Investing - Theory, News & General
Topic: Will ETFs Replace Traditional Funds
Replies: 87
Views: 4770

Re: Will ETFs Replace Traditional Funds

Thanks for the clarification. While it's not a "fundamental" difference between ETFs and mutual funds, it's likely to be a HUGE technical burden for more established brokerages to handle transactions like M1Finance (I'm thinking 5-10 years out). They'd likely only accomplish it sooner by outsourcin...
by AlohaJoe
Fri May 17, 2019 2:19 am
Forum: Personal Finance (Not Investing)
Topic: Who’s as good as Schwab (Low brokerage fees + convenience of global ATMs)?
Replies: 8
Views: 824

Re: Who’s as good as Schwab (Low brokerage fees + convenience of global ATMs)?

Plz wrote:
Fri May 17, 2019 1:30 am
Yes, Fidelity carries the zero expense ETFs, but their ATM withdrawals abroad are inferior.
In what way are Fidelity ATM withdrawals abroad inferior?
by AlohaJoe
Thu May 16, 2019 11:56 pm
Forum: Personal Finance (Not Investing)
Topic: Move Money From Fidelity to Bank Account Instantly?
Replies: 25
Views: 1686

Re: Move Money From Fidelity to Bank Account Instantly?

Clark Howard does not recommend Zelle. Clark Howard is wrong. Zelle is exactly the same as checks or cash. Does he recommend that people don't use checks or cash? Person after person has had their money absconded with by crooks using check fraud and banks often have said "Tough on you", if they dec...
by AlohaJoe
Thu May 16, 2019 11:48 pm
Forum: Investing - Theory, News & General
Topic: Will ETFs Replace Traditional Funds
Replies: 87
Views: 4770

Re: Will ETFs Replace Traditional Funds

Brokerages don't need to "come up" with anything. They all have this and they all offer it to customers. Fidelity doesn't allow fractional share purchases, never mind denominating the request in dollars Fidelity does both of those things. Maybe I was too oblique before: they have it but force you t...
by AlohaJoe
Thu May 16, 2019 9:44 pm
Forum: Investing - Theory, News & General
Topic: Will ETFs Replace Traditional Funds
Replies: 87
Views: 4770

Re: Will ETFs Replace Traditional Funds

If brokerages came up with better tools to transact ETFs in dollars, handling all the partial-share complexities, this would be a boon. Brokerages don't need to "come up" with anything. They all have this and they all offer it to customers. Now if they can just come up with a trivial way at the bro...
by AlohaJoe
Thu May 16, 2019 6:59 am
Forum: Personal Investments
Topic: Income stream post retirement.
Replies: 35
Views: 3210

Re: Income stream post retirement.

I let the dividends from my taxable ETFs go into my money market fund. About once a year, I estimate how much I need for the coming year from my investments, estimate the dividends and subtract them, and sell enough shares to cover the difference, placing the proceeds in the money market fund. I do...
by AlohaJoe
Thu May 16, 2019 6:44 am
Forum: Non-US Investing
Topic: Is SWR lower for international stock holders?
Replies: 9
Views: 847

Re: Is SWR lower for international stock holders?

Ferdinand2014 wrote:
Thu May 16, 2019 6:28 am
Looking at the data, it demonstrates an all U.S. portfolio over the past 115 years had a significantly lower failure rate.
It demonstrates than an all-US portfolio was better for an American investor. The OP said they are not American, so that result isn't meaningful for the OP.
by AlohaJoe
Thu May 16, 2019 6:43 am
Forum: Non-US Investing
Topic: Is SWR lower for international stock holders?
Replies: 9
Views: 847

Re: Is SWR lower for international stock holders?

I chose this fund because i am not a US citizen The SWR will depend on where you live. Since it depends on your local inflation and your local exchange rates. But in general, no SWRs are not lower for international stock holders. In general, they are higher. In total, global diversification resulte...
by AlohaJoe
Wed May 15, 2019 9:16 pm
Forum: Investing - Theory, News & General
Topic: Dividends almost Doubled between 2013 and now
Replies: 93
Views: 6934

Re: Dividends almost Doubled between 2013 and now

That is a good point. Do the dividend drops you note (below) comply with these standards? Are they real or just nominal? Could you cite a source? The chart shows inflation-adjusted dividends. The data comes from Robert Shiller's website. It is also relevant that a long time ago, corporations used t...
by AlohaJoe
Wed May 15, 2019 5:55 am
Forum: Investing - Theory, News & General
Topic: Dividends almost Doubled between 2013 and now
Replies: 93
Views: 6934

Re: Dividends almost Doubled between 2013 and now

"The stability of the annual dividends per share of the S&P 500 is truly remarkable (Exhibit 6.2). Over the 90-year span beginning in 1926, there were only three significant drops" I guess Bogle and I count very differently. Just as real returns are the only thing that matters, real dividends are t...
by AlohaJoe
Tue May 14, 2019 9:05 am
Forum: Personal Investments
Topic: Ticker symbols for indices
Replies: 3
Views: 314

Re: Ticker symbols for indices

Morningstar isn't really designed for tracking a benchmark, so it's not really going to be easy to directly track the indexes you mention. Actually Morningstar does have indexes you can track but they make it almost impossible to figure that out or to find the indexes on your own. Their search some...
by AlohaJoe
Mon May 13, 2019 9:36 pm
Forum: Investing - Theory, News & General
Topic: "Fund groups challenged over securities lending practices"
Replies: 12
Views: 1321

"Fund groups challenged over securities lending practices"

(This is a Financial Times article, you need to have a free account to read it.) https://www.ft.com/content/62946b2e-1a36-3bd9-9515-f48dfda43b2a BlackRock, UBS Asset Management and Deka have been challenged on the revenues generated by their securities lending activities, reigniting a debate about a...
by AlohaJoe
Mon May 13, 2019 10:43 am
Forum: Investing - Theory, News & General
Topic: How tax-efficient are iShares Core in One ETFs in a taxable account?
Replies: 14
Views: 1318

Re: How tax-efficient are iShares Core in One ETFs in a taxable account?

My question is: Are iShares Core in One ETFs tax-efficient enough to be recommended for a single-ETF portfolio across accounts, including a taxable account, when an investor wishes to maintain a constant (80/20, 60/40, 40/60, or 20/80) asset allocation with global stock and bond exposure? AOR had a...
by AlohaJoe
Mon May 13, 2019 10:20 am
Forum: Investing - Theory, News & General
Topic: Will a financial pro be WILLING to run your SWR plan after cognitive decline?
Replies: 66
Views: 4079

Re: Will a financial pro be WILLING to run your SWR plan after cognitive decline?

I'm pretty sure that Trusts have been dealing with this issue for decades and are more than willing to take your money to do it. Trust is the person or firm responsible, but begs the fundamental question of will they use your spreadsheet, and if not, what will they use? A Trustee will do whatever t...
by AlohaJoe
Mon May 13, 2019 7:30 am
Forum: Investing - Theory, News & General
Topic: Will a financial pro be WILLING to run your SWR plan after cognitive decline?
Replies: 66
Views: 4079

Re: Will a financial pro be WILLING to run your SWR plan after cognitive decline?

I'm pretty sure that Trusts have been dealing with this issue for decades and are more than willing to take your money to do it.
by AlohaJoe
Mon May 13, 2019 3:03 am
Forum: Investing - Theory, News & General
Topic: Swedroe & Kitces recommend government bonds, Vanguard aggregated bonds. What's better?
Replies: 19
Views: 1714

Re: Swedroe & Kitces recommend government bonds, Vanguard aggregated bonds. What's better?

Because reasonable people can disagree about the risks and rewards of using different kinds of bonds. After all, TIPS are clearly and obviously the safest bonds. But most people go "ew, but the returns are so low, surely I'm not taking much extra risk by using intermediate nominal Treasuries instead...
by AlohaJoe
Mon May 13, 2019 1:26 am
Forum: Personal Investments
Topic: Global vs US REITs
Replies: 4
Views: 773

Re: Global vs US REITs

iShares REET has an ER of 0.14. It seems like a much better choice for global REITs.

Is there any reason to go US-only?

In any case, just looking at correlations alone can sometimes be misleading, since the correlation doesn't tell you much about the magnitude.
by AlohaJoe
Sun May 12, 2019 8:17 pm
Forum: Personal Finance (Not Investing)
Topic: How much can parents gift children in 2019 tax free?
Replies: 38
Views: 4666

Re: How much can parents gift children in 2019 tax free?

The money they are going to gift / lend me is coming from an Ally checking account that pays 2%. They're not going to be worried about their rate of return but I'll probably do something like 3%. The IRS requires that private loans charge an interest rate that is no lower than the "Applicable Feder...
by AlohaJoe
Sun May 12, 2019 7:24 am
Forum: Personal Finance (Not Investing)
Topic: How much can parents gift children in 2019 tax free?
Replies: 38
Views: 4666

Re: How much can parents gift children in 2019 tax free?

Lastly, does it matter if I pay them back within the year? Yes, it does matter. If you pay it back, it is a loan and not a gift. Loans are required to charge interest. If no interest is charged then you have to calculate how much interest SHOULD have been charged and then treat that as a gift. Figu...
by AlohaJoe
Sun May 12, 2019 12:11 am
Forum: Personal Investments
Topic: Direction of interest rates
Replies: 19
Views: 1842

Re: Direction of interest rates

http://1.bp.blogspot.com/-amOBUPG8Zws/VdPCvAMMb9I/AAAAAAAAHk0/cpflQfSfpDo/s1600/chart1_%2BHistorical_Rates_Forecasts_blogcharts.jpg This chart shows the history of forecasts and actual rates. Basically, no matter what is happening people forecast that rates will shortly stablilize and "return to no...
by AlohaJoe
Fri May 10, 2019 10:19 pm
Forum: Personal Finance (Not Investing)
Topic: Cfiresim.com not fully working at the moment?
Replies: 14
Views: 940

Re: Cfiresim.com not fully working at the moment?

That's frustrating. The wiki lists many tools but some, it seems, are buggy or out of date. What are your preferred tools? I'm particularly attracted to the VPW spending model, and of course there is the VPW spreadsheet. Anything else you recommend? Nope, unfortunately, nothing else that is public ...
by AlohaJoe
Fri May 10, 2019 7:13 pm
Forum: Personal Finance (Not Investing)
Topic: Cfiresim.com not fully working at the moment?
Replies: 14
Views: 940

Re: Cfiresim.com not fully working at the moment?

I was trying to test some asset allocations at www.cfiresim.com but for some reason I only get graphs, and no statistics in numbers. Is there something wrong with the website or am I perhaps doing something wrong? I've tried different browsers with and without adblock. Cfiresim has been abandoned f...
by AlohaJoe
Fri May 10, 2019 12:13 am
Forum: Personal Investments
Topic: Best/Automated way for 3 ETF portfolio in Taxable account
Replies: 13
Views: 1016

Re: Best/Automated way for 3 ETF portfolio in Taxable account

A part of me fears placing thousands of dollars in a place like M1, what if they go bust? I mean they must be hemorrhaging investor money right now. Who in this world knows how good the SIPC insurance really is :P ? If they go bust, nothing happens. You go to sleep on Tuesday and your assets are ma...
by AlohaJoe
Thu May 09, 2019 5:54 am
Forum: Non-US Investing
Topic: Theory: Choose retirement country based on Forex rate
Replies: 32
Views: 2243

Re: Theory: Choose retirement country based on Forex rate

In the year 2000 the USD/AUD exchange rate was 1.71. Great! It's cheap! So you move to Sydney. But by 2011 it is way down to 0.92. Ouch. I don't see the "Ouch" here. That was an example of what can happen if you do not convert most of your assets into local bonds. So your strategy assumes someone m...
by AlohaJoe
Thu May 09, 2019 5:37 am
Forum: Non-US Investing
Topic: Theory: Choose retirement country based on Forex rate
Replies: 32
Views: 2243

Re: Theory: Choose retirement country based on Forex rate

You want to choose your retirement country based on the most attractive cost of living; I am an expat. I don't know many people who chose their retirement country solely based on cost of living. This entire thought exercise seems fairly unrealistic to me because things like friends & family & what ...
by AlohaJoe
Wed May 08, 2019 7:01 am
Forum: Investing - Theory, News & General
Topic: 100% Equities AA
Replies: 13
Views: 1744

Re: 100% Equities AA

Has anyone ever run a comparison between a 100% vs 50/50 AA using different scenarios? Yep, people do it all the time. It appears that with bonds paying such low interest, a high percentage in equities may make sense. Maybe. Maybe not. Maybe having a lot in stocks turns out to be good because bond ...
by AlohaJoe
Wed May 08, 2019 6:57 am
Forum: Investing - Theory, News & General
Topic: wouldn't the mswr you need be the number one driver in strategy?
Replies: 6
Views: 649

Re: wouldn't the mswr you need be the number one driver in strategy?

i guess what i am trying to say in my original point (and i clearly did not) is that if your portfolio is large enough that you only need a very low MSWR (say 2%), your focus would shift more toward ending portfolio balance and you might choose more risk Yes, some people do that. There's no clear c...
by AlohaJoe
Wed May 08, 2019 6:55 am
Forum: Personal Investments
Topic: The 4% rule
Replies: 94
Views: 6406

Re: The 4% rule

Jack FFR1846 wrote:
Wed May 08, 2019 5:43 am
The Trinity Study

That's where the number came from.
It actually came from William Bengen, not the Trinity Study. The Trinity Study came a few years later and simply replicated Bengen's work.
by AlohaJoe
Wed May 08, 2019 5:32 am
Forum: Personal Investments
Topic: The 4% rule
Replies: 94
Views: 6406

Re: The 4% rule

The math behind the problem is hard. That's why the 4% is not a "rule", but simply the observation that backtesting a 60/40 portfolio, 4% real withdrawal did not deplete completely the capital over 30 years in 95% (iirc) of the cases. It's a 50/50 portfolio. It isn't a 50/50 portfolio. You should r...
by AlohaJoe
Wed May 08, 2019 1:58 am
Forum: Investing - Theory, News & General
Topic: Wes Gray: Value Investing Not Dead, Just Wait
Replies: 12
Views: 1906

Re: Wes Gray: Value Investing Not Dead, Just Wait

the fact that we should continue to expect it to provide a premium in the future despite recent performance. (Disclaimer: I tilt towards value; I'm not some value/factor hater.) I thought it was a pretty poor outing from Gray, who is usually more thoughtful & data-oriented. Admittedly, it is an int...
by AlohaJoe
Wed May 08, 2019 12:51 am
Forum: Investing - Theory, News & General
Topic: wouldn't the mswr you need be the number one driver in strategy?
Replies: 6
Views: 649

Re: wouldn't the mswr you need be the number one driver in strategy?

Your belief that international is a drag on MSWR is incorrect. Go to https://portfoliocharts.com/portfolio/withdrawal-rates/ A 60/40 US portfolio has an MSWR of 4.5% A 30% US, 30% International, 40% US bond portfolio has an MSWR of 4.7% So adding international helped, it didn't hurt. In any case, op...
by AlohaJoe
Wed May 08, 2019 12:40 am
Forum: Personal Investments
Topic: The 4% rule
Replies: 94
Views: 6406

Re: The 4% rule

Can someone point me to the math behind it? Or some calculators on how to simulate sequence of return events? https://www.bogleheads.org/wiki/Safe_withdrawal_rates www.firecalc.com If I just go by a 4% withdrawal starting rate and keep increasing spend by 2% (inflation) every year, and say a conser...
by AlohaJoe
Mon May 06, 2019 10:35 pm
Forum: Personal Finance (Not Investing)
Topic: Zelle [digital payment system]
Replies: 23
Views: 2547

Re: Zelle

If your contractor claims you didn't pay, and sues you, does Zelle provide court-accepted evidence of payment? Yes. "Zelle" doesn't provide anything. Your bank does. Zelle is just a technology like writing a check, or electronic bill pay, or using ACH, or sending a wire transfer. If you use electro...
by AlohaJoe
Mon May 06, 2019 9:25 pm
Forum: Personal Finance (Not Investing)
Topic: Schwab Pledged Asset Credit Line
Replies: 6
Views: 848

Re: Schwab Pledged Asset Credit Line

The rates at Schwab are too high. I think it is LIBOR + 375 (or whatever they've replaced LIBOR with). I also don't like the 5-year term when there are options out there with no term. Is the PAL callable? If not, I guess that might be one benefit. See a previous thread where multiple people recommen...
by AlohaJoe
Mon May 06, 2019 8:53 pm
Forum: Personal Finance (Not Investing)
Topic: tax basis for foreign stock
Replies: 5
Views: 323

Re: tax basis for foreign stock

Ok so that’s pretty much what I was assuming. I’m wondering if it makes sense to make another attempt at having fidelity get the data from Computershare. Or is that a lost cause. Computershare will never provide the basis in USD, so asking again won't do anything. Just like if I asked Fidelity for ...
by AlohaJoe
Mon May 06, 2019 9:48 am
Forum: Personal Finance (Not Investing)
Topic: Calculating Savings Rate
Replies: 15
Views: 1545

Re: Calculating Savings Rate

How would you calculate my savings rate? Calculating savings rate Which formula to use to calculate personal Savings Rate How do you calculate your savings rate? Do people calculate savings rate on gross income? Savings Rate Formula - Explicitly Spelled Out and more. Looks like there have been over...
by AlohaJoe
Sun May 05, 2019 7:55 am
Forum: Personal Finance (Not Investing)
Topic: How can I learn to use Excel for retirement planning?
Replies: 14
Views: 1370

Re: How can I learn to use Excel for retirement planning?

You can also pay Tiller some money and they will build a spreadsheet for you.

https://www.tillerhq.com

Then you can see how it works and customize it more, if you want.
by AlohaJoe
Fri May 03, 2019 3:44 am
Forum: Personal Consumer Issues
Topic: I have a buddy in Australia he says he pays for each email. I never heard of this. Is this true?
Replies: 17
Views: 3288

Re: I have a buddy in Australia he says he pays for each email. I never heard of this. Is this true?

iamblessed wrote:
Thu May 02, 2019 10:28 pm
Anybody ever heard of this in Australia? He also says he pays more for an email with pictures in it.
I'm Australian and have never heard of it.
by AlohaJoe
Thu May 02, 2019 7:57 pm
Forum: Investing - Theory, News & General
Topic: "10 year bull market": By what measure?
Replies: 22
Views: 1929

Re: "10 year bull market": By what measure?

Weird: bear market has a measurable definition but bull market doesn't? A bull market's measurable definition is "not a bear market". So if the market declines 5%/year for 3 years that's a bull market...doesn't seem right :( It's not any stranger than a drop of -19.99999% not being a bear market, s...
by AlohaJoe
Thu May 02, 2019 10:24 am
Forum: Personal Investments
Topic: Vanguard Intermediate-Term Tax-Exempt VWITX makes no sense?
Replies: 43
Views: 3893

Re: Vanguard Intermediate-Term Tax-Exempt VWITX makes no sense?

m@ver1ck wrote:
Thu May 02, 2019 10:14 am
Is it simply a matter of trying to figure out what my tax bracket is going to be and going from there?
Yes.
by AlohaJoe
Thu May 02, 2019 10:18 am
Forum: Investing - Theory, News & General
Topic: "10 year bull market": By what measure?
Replies: 22
Views: 1929

Re: "10 year bull market": By what measure?

tennisplyr wrote:
Thu May 02, 2019 6:37 am
Weird: bear market has a measurable definition but bull market doesn't?
A bull market's measurable definition is "not a bear market".
by AlohaJoe
Thu May 02, 2019 10:11 am
Forum: Investing - Theory, News & General
Topic: How to Think About Money--Should be required reading for Bogleheads
Replies: 14
Views: 3461

Re: How to Think About Money--Should be required reading for Bogleheads

Why should it be required read, if you are already a boglehead? :D FWIW, I wasn't that impressed with the book. That is: for me personally I didn't think it was useful. But not every book is for every audience. I could see it being more useful for someone who is just starting on the personal financ...