Search found 5457 matches

by AlohaJoe
Thu Sep 17, 2020 11:15 pm
Forum: Personal Finance (Not Investing)
Topic: Don’t understand when to pay taxes new retiree
Replies: 42
Views: 3208

Re: Don’t understand when to pay taxes new retiree

As far as I know, mutual fund companies do not have an option to withhold income tax from distributions made by a fund in a taxable account. I'm pretty sure every mutual fund company can do it since they are required to do backup withholding if notified by the IRS (or if no SSN/ITIN/W9 is provided)...
by AlohaJoe
Sat Sep 12, 2020 8:05 am
Forum: Personal Investments
Topic: Anyone successfully living off dividends & interest?
Replies: 203
Views: 18500

Re: Anyone successfully living off dividends & interest?

This has concerned me as well. As does the lack of replies. I continue to search for other avenues of passive income but have yet to find one that fits. The lack of replies is likely because Bogleheads think "passive income" is a fool's errand that fundamentally misunderstands investing. There have...
by AlohaJoe
Fri Sep 11, 2020 9:44 pm
Forum: Personal Investments
Topic: Anyone successfully living off dividends & interest?
Replies: 203
Views: 18500

Re: Anyone successfully living off dividends & interest?

But just out of curiosity, anyone with a NON 8-figure portfolio actually create a stream of income that allows them to (1) meet all expenses and (2) keep up with inflation -- all without eating into principal or using capital gains for your withdrawal strategy? If so, how the heck did you do it? I'...
by AlohaJoe
Fri Sep 11, 2020 7:10 am
Forum: Investing - Theory, News & General
Topic: To what extent is divergence between US and European stock markets related to structural factors?
Replies: 5
Views: 430

Re: To what extent is divergence between US and European stock markets related to structural factors?

US financial company performance alone is responsible for nearly 50% of the out-performance of US vs. ex-US . Do you have a link for that? I wonder what percentage tech might be. It was from a recent Morningstar research piece; sorry I don't have a link handy. IT was responsible for around 1/3rd of...
by AlohaJoe
Fri Sep 11, 2020 6:14 am
Forum: Investing - Theory, News & General
Topic: To what extent is divergence between US and European stock markets related to structural factors?
Replies: 5
Views: 430

Re: To what extent is divergence between US and European stock markets related to structural factors?

To what extent is the divergence between European and US stock markets in the last 30 years due to structural factors, such as Americans having their retirement savings in the stock market and the ease of investing from abroad? None of it is structural in the way you describe. 95% of the difference...
by AlohaJoe
Thu Sep 10, 2020 4:26 am
Forum: Non-US Investing
Topic: Bonds - Why do we hedge to local currency?
Replies: 21
Views: 1103

Re: Bonds - Why do we hedge to local currency?

Australia (Federal) is surely more credit worthy than Italy and Spain, though? As an Australian, I'm obviously going to say yes :D Many of costs of living such as housing and healthcare are basically locally set. I think it is easy to underestimate just how globalized even these things are nowadays...
by AlohaJoe
Thu Sep 10, 2020 3:11 am
Forum: Personal Investments
Topic: How can I get Pre IPO stocks
Replies: 20
Views: 1816

Re: How can I get Pre IPO stocks

Is it possible to invest money towards pre IPOs on a smaller monetary scale? In general, no. There are a few reasons for it. One big one is that Pre-IPO companies simply don't want a lot of investors. There are some legal issues (if a company has more than 2,000 investors they are forced to go publ...
by AlohaJoe
Thu Sep 10, 2020 1:46 am
Forum: Investing - Theory, News & General
Topic: Tax Ratio for Relative Efficiency?
Replies: 7
Views: 497

Re: Tax Ratio for Relative Efficiency?

First: the tax-ratio analysis indicates that ETFs should be considered first and that it should be SP500 over total market. That isn't a slight difference either it's .4 net tax/ER cost between VOO and SWTSX. This is not what the boglehead wiki suggests. (Too vanguard oriented?) https://www.boglehe...
by AlohaJoe
Wed Sep 09, 2020 11:57 pm
Forum: Investing - Theory, News & General
Topic: Tax Ratio for Relative Efficiency?
Replies: 7
Views: 497

Re: Tax Ratio for Relative Efficiency?

I'm also not sure I understand the point of calculating the absolute tax efficiency for an individual situation. Assuming LTCG that all should be a wash. I don't follow what you mean by "assuming LTCG that all should be a wash". Why would you assume long-term capital gains? Tax efficiency is primar...
by AlohaJoe
Wed Sep 09, 2020 11:14 pm
Forum: Investing - Theory, News & General
Topic: Tax Ratio for Relative Efficiency?
Replies: 7
Views: 497

Re: Tax Ratio for Relative Efficiency?

I'm not sure how Schwab is getting such a large difference (0.10) between the S&P 500 and Total Stock Market funds. They have nearly identical yields and I think the only difference is a TSM fund has very slightly less Qualified Dividends. But we're talking 94% QDI instead of 100% QDI. It shouldn't ...
by AlohaJoe
Wed Sep 09, 2020 11:00 pm
Forum: Non-US Investing
Topic: Bonds - Why do we hedge to local currency?
Replies: 21
Views: 1103

Re: Bonds - Why do we hedge to local currency?

The axiomatic reason for this advice is that it is a Good Thing to reduce volatility when measured in your local currency. I would like to challenge this assertion and suggest a new principle: I believe it is a Good Thing to reduce volatility as measured by your local purchasing power (as it relate...
by AlohaJoe
Mon Sep 07, 2020 9:54 pm
Forum: Investing - Theory, News & General
Topic: How do Bogleheads cope with FOMO? [Fear Of Missing Out]
Replies: 97
Views: 7361

Re: How do Bogleheads cope with FOMO?

I'm assuming you're feeling missed out on tesla, apple, gold or something else that has happened to have beaten the market over some recent short term time period. you must realize a few things: In addition to these great points keep in mind that your friends and acquaintances are much more likely ...
by AlohaJoe
Mon Sep 07, 2020 8:41 pm
Forum: Personal Investments
Topic: Cost Basis Method Strategies
Replies: 11
Views: 651

Re: Cost Basis Method Strategies

Specific ID gives one the most flexibility. I am not aware of any downsides to selecting it. Especially now that most (not all, unfortunately) brokerages have user-friendly options like "maximize my short-term losses when selling" so computers handle the work of specifying shares and you don't even...
by AlohaJoe
Mon Sep 07, 2020 8:19 pm
Forum: Personal Investments
Topic: Cost Basis Method Strategies
Replies: 11
Views: 651

Re: Cost Basis Method Strategies

Specific ID gives one the most flexibility. I am not aware of any downsides to selecting it. Especially now that most (not all, unfortunately) brokerages have user-friendly options like "maximize my short-term losses when selling" so computers handle the work of specifying shares and you don't even...
by AlohaJoe
Mon Sep 07, 2020 7:44 pm
Forum: Investing - Theory, News & General
Topic: reliable brokerage platform
Replies: 17
Views: 1132

Re: reliable brokerage platform

Interactive Brokers, Schwab, Fidelity are rock solid (as much as it gets in the financial industry). Interactive Brokers, Fidelity, and Schwab all had outages in February, March, and April. As did TDAmeritrade. Here's just one of the many news stories about it: https://www.fool.com/investing/2020/0...
by AlohaJoe
Mon Sep 07, 2020 7:35 pm
Forum: Investing - Theory, News & General
Topic: Vanguard Outlines Potential Benefits of Dividend-Focused Investing
Replies: 16
Views: 2512

Re: Vanguard Outlines Potential Benefits of Dividend-Focused Investing

It had been debunked time and time again that dividend investing gives any benefit over total return investing. But in my opinion it is a misdemeanor not a felony. There are much worse mistakes to make. Vanguard disagrees with you. No they don't. The paper you linked doesn't come from Vanguard Rese...
by AlohaJoe
Mon Sep 07, 2020 9:42 am
Forum: Non-US Investing
Topic: hedging of local currency
Replies: 15
Views: 786

Re: hedging of local currency

There is literally no ETF hedged to koruna, so I have two options: 1) invest into koruna hedged mutual fund based on broad index 2) invest into unhedged ETF and bear the losses I also live in a country with effectively no hedging options -- Vietnam. You can't even buy government bonds to hedge that...
by AlohaJoe
Mon Sep 07, 2020 6:58 am
Forum: Investing - Theory, News & General
Topic: Best ETFs for shorting: IB Stock yield enhancement
Replies: 33
Views: 1923

Re: Best ETFs for shorting: IB Stock yield enhancement

Is there any way to zero in on the net for that, what the actual results are on a day-to-day basis? If you were to get the FEERATE for the entire year on a position, it could be comparable in magnitude to a good transfer bonus (to my mind a good transfer bonus is $1M getting $2500, whereas $1M at 0...
by AlohaJoe
Mon Sep 07, 2020 6:27 am
Forum: Investing - Theory, News & General
Topic: S&P 500 included 94.81% of the market at inception
Replies: 16
Views: 2344

Re: S&P 500 included 94.81% of the market at inception

Nothing about how the 500 stocks were to be chosen, though. I've never seen an official explanation of the methodology from "back in the day" but I suspect that, at least in the beginning, there wasn't really one. The S&P 500 was intended to be a total stock market index. They went through all the ...
by AlohaJoe
Mon Sep 07, 2020 6:02 am
Forum: Investing - Theory, News & General
Topic: S&P 500 included 94.81% of the market at inception
Replies: 16
Views: 2344

Re: S&P 500 included 94.81% of the market at inception

The original S&P 500 (in 1957) was 425 industrial stocks, 60 utilities, and 15 railroads. Hmm, the source I have gives 425 industrial stocks, 50 utilities, and 25 transport stocks in 1957. The numbers you quote seem to be for the 1975-1976 version of the S&P 500. The full list of changing compositi...
by AlohaJoe
Mon Sep 07, 2020 2:09 am
Forum: Investing - Theory, News & General
Topic: Best ETFs for shorting: IB Stock yield enhancement
Replies: 33
Views: 1923

Re: Best ETFs for shorting: IB Stock yield enhancement

Is there any way to zero in on the net for that, what the actual results are on a day-to-day basis? If you were to get the FEERATE for the entire year on a position, it could be comparable in magnitude to a good transfer bonus (to my mind a good transfer bonus is $1M getting $2500, whereas $1M at 0...
by AlohaJoe
Mon Sep 07, 2020 2:02 am
Forum: Investing - Theory, News & General
Topic: Best ETFs for shorting: IB Stock yield enhancement
Replies: 33
Views: 1923

Re: Best ETFs for shorting: IB Stock yield enhancement

Is there some sort of indication that shows when your shares are lent out? Like when you're just looking at your portfolio positions in the mobile app, web, or TWS? No, there's not. But... you can create a custom report and then run it over a time period, say "Month to date", that will show all sto...
by AlohaJoe
Sun Sep 06, 2020 10:06 pm
Forum: Investing - Theory, News & General
Topic: Interactive Brokers (Best Kept Secret)
Replies: 265
Views: 67694

Re: Interactive Brokers (Best Kept Secret)

1. bill pay is not free. 2. outgoing transfers are only free once a month. 3. no check writing at all. 4. incoming transfers are subject to a trading hold. you can simulate a bill payment but that's at least 1 business day as well. so if you're the type to buy the day you're paid, that's not possib...
by AlohaJoe
Sat Sep 05, 2020 10:12 am
Forum: Personal Investments
Topic: Do I really own anything if everything can require a Medallion signature which I can never get?
Replies: 71
Views: 7674

Re: Do I really own anything if everything can require a Medallion signature which I can never get?

Have you actually been asked to provide a Medallion signature?

I can't figure out why you're sad and so overwrought.
by AlohaJoe
Sat Sep 05, 2020 12:40 am
Forum: Non-US Investing
Topic: TransferWise vs Schwab for EUR to USD recurring transfers
Replies: 33
Views: 1938

Re: TransferWise vs Schwab for EUR to USD recurring transfers

TransferWise was cheap but they increased their fees 2-3 times in the past years. If you're looking for the cheapest exchange rates then you should definitely use IB. Yeah, I had used Transferwise in the distant past when they were better than fx/xe.com. However, a year or two back I again needed t...
by AlohaJoe
Wed Sep 02, 2020 10:41 am
Forum: Investing - Theory, News & General
Topic: Vanguard to shift accounts to brokerage?
Replies: 76
Views: 3759

Re: Vanguard to shift accounts to brokerage?

Vanguard has made dozens of announcements over the years that this is happening. I've received emails, paper mail, and seen it on login.
by AlohaJoe
Sun Aug 30, 2020 8:21 am
Forum: Non-US Investing
Topic: US citizen investing in India
Replies: 28
Views: 1849

Re: US citizen investing in India

gautamsa wrote: Sun Aug 30, 2020 7:18 am
HSBC India had filed the FATCA form back in 2015 for me. Isnt this used to report PFIC to the US govt ?
No, FATCA and PFIC are completely unrelated.

I can't answer the details since I don't know anything about the Indian specifics, unfortunately.
by AlohaJoe
Sun Aug 30, 2020 6:35 am
Forum: Personal Finance (Not Investing)
Topic: 100k Loophole Question
Replies: 16
Views: 2709

Re: 100k Loophole Question

I've heard a lot of people make a loan for $X and then forgive $15k/person per year as a gift. If the borrower doesn't actually pay anything then the IRS (rightly) sees this as a sham loan to avoid gift tax law. The IRS starts with the presumption that a transfer between family members is a gift. Y...
by AlohaJoe
Sat Aug 29, 2020 11:10 pm
Forum: Non-US Investing
Topic: US citizen investing in India
Replies: 28
Views: 1849

Re: US citizen investing in India

Hi, I am a US citizen of Indian origin. I have some money parked in India in an MNC bank in an NRE account locked in insurance policies (75 %equity and 25% bonds). Can I invest in any Indian index funds ? Also is there a way for me to find what indexes are in India and what have been their rate of ...
by AlohaJoe
Sat Aug 29, 2020 7:36 pm
Forum: Personal Finance (Not Investing)
Topic: IRS processing of 2019 paper returns
Replies: 10
Views: 755

Re: IRS processing of 2019 paper returns

Eagle33 wrote: Sat Aug 29, 2020 5:09 pm Since IRS has to pay interest on refund due returns, I would assume they would prioritize those before processing the payment due returns.
How do they know if a refund is due before they process it?

The IRS states that they process returns in the order they are received.
by AlohaJoe
Sat Aug 29, 2020 7:35 pm
Forum: Investing - Theory, News & General
Topic: MLPs are not included in S&P500
Replies: 18
Views: 1597

Re: MLPs are not included in S&P500

I’ve been researching some MLPs recently such as EPD, MMP, ET because of their high yield. I discovered that none of them are included in either S&P 500 or even VTI. Does anyone know the reason? The S&P (and every other index provider) typically only includes common stock and excludes MLPs, BDCs, L...
by AlohaJoe
Sat Aug 29, 2020 7:22 pm
Forum: Investing - Theory, News & General
Topic: Retirement savings
Replies: 8
Views: 1465

Re: Retirement savings

To expand on livesoft's point, you could probably come up with a single rule of thumb if people actually saved exactly the same amount their entire life. But in your early career you are paying back university loans and saving for a house deposit. In your middle years you're saving for children's ed...
by AlohaJoe
Fri Aug 28, 2020 3:59 am
Forum: Investing - Theory, News & General
Topic: Liability Matching Portfolio and/or Asset Allocation
Replies: 52
Views: 3282

Re: Liability Matching Portfolio and/or Asset Allocation

For the purpose of financial planning, what class of utility functions do you recommend instead of CRRA? One alternative to think about is the utility function described in Shefrin & Statman in "Behavioral Portfolio Theory" (Journal of Financial and Quantitative Analysis 2000). Their theory is an a...
by AlohaJoe
Thu Aug 27, 2020 11:59 pm
Forum: Personal Finance (Not Investing)
Topic: Profit Sharing vs. Cash Bonus
Replies: 16
Views: 1466

Re: Profit Sharing vs. Cash Bonus

AW89 wrote: Thu Aug 27, 2020 11:29 pm Of course, cash bonus will be taxed at ~40% upfront....
Why on earth would your bonus be taxed 40%? The top marginal tax bracket is 37% and only kicks in once you are earning over $600,000 a year. You're making $120,000 a year. Your marginal tax bracket is 22%.
by AlohaJoe
Thu Aug 27, 2020 10:08 pm
Forum: Investing - Theory, News & General
Topic: I survived the 'sequence of returns risk'
Replies: 42
Views: 3819

Re: I survived the 'sequence of returns risk'

I retired in 2011, and luckily, have been on a pretty good ride in the market since then. So, since I was not negatively affected by the sequence risk, what can I expect/how might this impact my withdrawals going forward? Curious how one determines when they have survived SORR. What criteria did yo...
by AlohaJoe
Thu Aug 27, 2020 6:12 am
Forum: Investing - Theory, News & General
Topic: Best and worst years for financial simulators
Replies: 6
Views: 432

Re: Best and worst years for financial simulators

I've been playing around with the numbers using things like Firecalc and the VPW spreadsheets. When I run the backtests on VPW stuff I'd like to know bad years to start off with, might as well look at good years also. What are bad and good years to start back tests with? Thank you. It will vary som...
by AlohaJoe
Thu Aug 27, 2020 2:15 am
Forum: Investing - Theory, News & General
Topic: does this SEC rule change mean getting into IPO is easier now?
Replies: 3
Views: 273

Re: does this SEC rule change mean getting into IPO is easier now?

The SEC rule change has nothing to do with IPOs -- it is about direct listings -- so no it won't make getting into an IPO any easier. The move is a major breakthrough for the exchange operator that has been pushing for an alternative to traditional initial public offerings (IPOs) for companies to ra...
by AlohaJoe
Wed Aug 26, 2020 10:06 pm
Forum: Personal Investments
Topic: Who is liable for this?
Replies: 46
Views: 6256

Re: Who is liable for this?

You are the one that is liable. Consider this a learning experience. Why should I be liable when it was their system that messed it up. I elected to have my money moved back to the cash account (and that is what the app clearly stated). Nobody moves it back to cash only to be moved back in a loop b...
by AlohaJoe
Wed Aug 26, 2020 8:25 am
Forum: Personal Investments
Topic: Buying index fund every 31 days
Replies: 6
Views: 780

Re: Buying index fund every 31 days

striker79 wrote: Wed Aug 26, 2020 7:41 am If I buy the same index fund every 31 days, then this would allow me to sell whenever I want for capital gain loss and avoid a wash sale correct?
Why do you care this much about avoiding wash sales? Generating a wash sale is not an issue.
by AlohaJoe
Tue Aug 25, 2020 6:56 am
Forum: Personal Investments
Topic: Tax consequences of IB Stock Yield Enhancement program?
Replies: 54
Views: 3215

Re: Tax consequences of IB Stock Yield Enhancement program?

I'm also using the SYEP. I read in another thread that there can be problems with dividend pay outs. Anyone experience that? https://www.bogleheads.org/forum/viewtopic.php?p=2330599&sid=2fa77a1732b01d95553ebf274e17e24f#p2330599 Hi YRT, that was the original point of this post. It seems they can't g...
by AlohaJoe
Tue Aug 25, 2020 6:25 am
Forum: Investing - Theory, News & General
Topic: A timely and equanimous article on gold
Replies: 78
Views: 5948

Re: A timely and equanimous article on gold

Uncorrelated is the investment equivalent of Deepak Chopra -- subjecting anyone who will listen to word salad that is totally meaningless. Go ahead and ignore gold if you want. It's your (or rather your wealth's) funeral. Uncorrelated preferred alternative asset: ticker symbol COSTLOT, a peer-to-pe...
by AlohaJoe
Mon Aug 24, 2020 10:08 pm
Forum: Investing - Theory, News & General
Topic: Safe withdrawal rate for someone retiring at 35? Would real estate help or hurt?
Replies: 48
Views: 5264

Re: Safe withdrawal rate for someone retiring at 35? Would real estate help or hurt?

The average American lives till ~80, so if he/she retired at 35, retirement would last ~45 years and hopefully longer. What would you recommend for a SWR? There's no such thing as a "Safe Withdrawal Rate" for a retirement that long. Anyone who tells you differently is lying. Just use a variable wit...
by AlohaJoe
Sat Aug 22, 2020 9:47 pm
Forum: Investing - Theory, News & General
Topic: As a US Investor, why shouldn't my market be "US Investors" (vs. "Global Investors")
Replies: 16
Views: 1287

Re: As a US Investor, why shouldn't my market be "US Investors" (vs. "Global Investors")

as long as the population is truly representative of you, and is large enough / has the infrastructure to be efficient it should be okay, no? I don't quite follow why these are the criteria for deciding a "market". Could you elaborate on why you think that's the definition? I guess I'm not seeing h...
by AlohaJoe
Fri Aug 21, 2020 4:34 am
Forum: Investing - Theory, News & General
Topic: Economist article on bubbles and exuberance
Replies: 65
Views: 5930

Re: Economist article on bubbles and exuberance

And what do you think of the article? I think you need to stop reading financial news and find a new hobby. Today you're delaying making new investments. 8 days ago you were going to buy ETFs with stable cash flows: https://www.bogleheads.org/forum/viewtopic.php?f=10&t=322583&p=5425962#p5425962 4 d...
by AlohaJoe
Thu Aug 20, 2020 8:35 pm
Forum: Personal Finance (Not Investing)
Topic: Social Security Jitters Anyone ??
Replies: 87
Views: 6698

Re: Social Security Jitters Anyone ??

I have always planned to wait until 70 but recently began thinking of taking SS at my normal retirement age, 66. I turn 66 next month. I’ll decide this fall and will take it Jan. 2021 if I make the change. With the lower SS collections due to the pandemic and other talk about eliminating the SS tax...
by AlohaJoe
Thu Aug 20, 2020 8:32 pm
Forum: Personal Finance (Not Investing)
Topic: Are emergency funds for suckers?
Replies: 202
Views: 15687

Re: Are emergency funds for suckers?

This comes up frequently. Here's another similar thread: https://www.bogleheads.org/forum/viewtopic.php?t=311324 I'm of similar mindset. It doesn't make much sense for a young accumulator in their 20s to stick their first 50-100K of savings into cash to hold forever. I guess that's the super safest...
by AlohaJoe
Wed Aug 19, 2020 8:24 pm
Forum: Personal Finance (Not Investing)
Topic: Social Security Jitters Anyone ??
Replies: 87
Views: 6698

Re: Social Security Jitters Anyone ??

If you look at the last several years... actually, this year more than any other.. you will notice that the US government has plenty of ways of creating money out of thin air. I wouldn't rule it out as a means of meeting social security obligations instead of angering a huge percentage of voters. S...
by AlohaJoe
Wed Aug 19, 2020 10:52 am
Forum: Personal Finance (Not Investing)
Topic: Social Security Jitters Anyone ??
Replies: 87
Views: 6698

Re: Social Security Jitters Anyone ??

With all this talk (and hopefully thats all it is) with cutting social security, are there any soon to be 70 ss claimants who are having second thoughts about waiting to 70 and possibly claiming earlier in your late 60's instead? Why do you think that claiming earlier would make a difference? I don...
by AlohaJoe
Wed Aug 19, 2020 10:45 am
Forum: Personal Finance (Not Investing)
Topic: Social Security Jitters Anyone ??
Replies: 87
Views: 6698

Re: Social Security Jitters Anyone ??

With all this talk (and hopefully thats all it is) with cutting social security, are there any soon to be 70 ss claimants who are having second thoughts about waiting to 70 and possibly claiming earlier in your late 60's instead? Why do you think that claiming earlier would make a difference? I don...
by AlohaJoe
Wed Aug 19, 2020 10:16 am
Forum: Personal Investments
Topic: The next bubble: Passive investing in ETFs?
Replies: 9
Views: 1001

Re: The next bubble: Passive investing in ETFs?

What's interesting in the article? I read it and didn't see anything interesting. Just more "active funds will do better in a downturn....I mean, we just had a downturn and they didn't do better but I'll assume none of my readers can actually remember three months ago."