Search found 2620 matches

by asset_chaos
Mon Mar 18, 2024 8:22 pm
Forum: Investing - Theory, News & General
Topic: Vanguard invites clients to lend securities
Replies: 21
Views: 1266

Re: Vanguard invites clients to lend securities

The income derivable from securities lending seems to have exploded in the last year. Perhaps this corresponds with the rise of interest rates; I don't know enough about securities lending to know. One can see this income from the annual report of Vanguard's small-cap index funds. Last fiscal year securities lending exceeded fund expenses (at least the ones listed in the report under net fund expenses) for all three index funds by between 80--200%. By contrast in previous years lending income covered 30--50% of fund expenses. I looks like Vanguard is letting their brokerage customers with individual stocks in on this particular bonaza. This year I'm even more astonished than normal about the amount of money shorts spend to borrow stocks. B...
by asset_chaos
Mon Mar 18, 2024 8:10 pm
Forum: Personal Finance (Not Investing)
Topic: IRS says I owe it money, but I don't
Replies: 28
Views: 3386

Re: IRS says I owe it money, but I don't

If you can't get an explanation about where the withheld taxes went, I had a good experience with the IRS ombudsman one year when something similar happened to me. IRS said I owed more tax; I was sure I'd paid all I owed. I kept asking for a plain English explanation as to why they thought I owed more. All I got were form letters saying, you owe more tax, and with escalating threats if I didn't just send the amount demanded. The ombudsman tracked down the problem to one tax payment that had been miscredited to someone else's account. And that was the extra amount I was supposed to have owed. The ombudsman found and fixed the problem in just a few days. If you can't get satisfaction through regular IRS channels, try the ombudsman.
by asset_chaos
Mon Mar 18, 2024 7:47 pm
Forum: Investing - Theory, News & General
Topic: Vanguard invites clients to lend securities
Replies: 21
Views: 1266

Re: Vanguard invites clients to lend securities

The income derivable from securities lending seems to have exploded in the last year. Perhaps this corresponds with the rise of interest rates; I don't know enough about securities lending to know. One can see this income from the annual report of Vanguard's small-cap index funds. Last fiscal year securities lending exceeded fund expenses (at least the ones listed in the report under net fund expenses) for all three index funds by between 80--200%. By contrast in previous years lending income covered 30--50% of fund expenses. I looks like Vanguard is letting their brokerage customers with individual stocks in on this particular bonaza. This year I'm even more astonished than normal about the amount of money shorts spend to borrow stocks. Bu...
by asset_chaos
Mon Mar 18, 2024 3:58 pm
Forum: Investing - Theory, News & General
Topic: VTIAX and VFWAX are only 90% international, VSS only 85%
Replies: 4
Views: 828

Re: VTIAX and VTWAX are only 90% international, VSS only 85%

jeffyscott wrote: Mon Mar 18, 2024 3:35 pm
asset_chaos wrote: Sun Mar 17, 2024 8:16 pm I clearly don't understand how this is reported. How does total world (vtwax) have 90% foreign income and 80% qualified dividends, per the 1099 I got for total world?
OP meant VFWAX, check the image.
Thanks. That explains it. The image doesn't show on my chromebook, and the OP wrote VTWAX.

Helium, perhaps you can edit the title and your text to change VT to VF.
by asset_chaos
Sun Mar 17, 2024 8:16 pm
Forum: Investing - Theory, News & General
Topic: VTIAX and VFWAX are only 90% international, VSS only 85%
Replies: 4
Views: 828

Re: VTIAX and VTWAX are only 90% international, VSS only 85%

I clearly don't understand how this is reported. How does total world (vtwax) have 90% foreign income and 80% qualified dividends, per the 1099 I got for total world?
by asset_chaos
Sat Mar 16, 2024 11:40 pm
Forum: Investing - Theory, News & General
Topic: Which industry will benefit from new real estate commission fee structure?
Replies: 51
Views: 4099

Re: Which industry will benefit from new real estate commission fee structure?

Perhaps some perspective from a non-US, but economically and socially comparable, place where real estate fees were never set by a quasi-mononpoly-cartel structure. In Australia (Melbourne) I've bought and sold a personal residence three times and sold another residence on behalf of a trust. Selling commissions were in the range 1.8--1.9%, where we hired a real estate agent; there was no commission on the buy side, where I never saw any reason to have a buyer's agent. (If a buyer hires a buyer's agent, I believe, the buyer pays their own agent a set fee, but I'm not certain.) We also had an incentive agreement, where the agent would have gotten 5% of the amount of the purchase price above a threshold. The seller pays directly for advertisin...
by asset_chaos
Wed Mar 13, 2024 8:38 pm
Forum: Personal Investments
Topic: Reducing Large Inherited Holding of a Single Stock
Replies: 18
Views: 1988

Re: Reducing Large Inherited Holding of a Single Stock

Welcome to the forum.

I assume you're aware of the step up in basis for inherited assets. It's unclear if you mean you've inherited these stocks recently or inherited them a while ago and have to deal with capital gains since inheriting. If you can clarify, you'll likely get better advice.

For the specially managed account with the 0.4% fee, just say no.
by asset_chaos
Tue Mar 12, 2024 4:57 pm
Forum: Non-US Investing
Topic: Is an investment property worthwhile? (Australia)
Replies: 6
Views: 1228

Re: Is an investment property worthwhile? (Australia)

I have been considering an investment property mainly for the negative gearing tax savings. Would it be worthwhile or is it better to just keep more in the index. Other investments such as shares can be negatively geared, however the interest rates are much high and the leverage much lower. It seems like the everything here including taxes are geared towards property. I don't think the U.S has negative gearing for example? I've lived in Aus for 25 years, and I still find the mania for residential investment property to be strangely excessive. Don't let the buzz of friends and relatives push you into a decision. The losses are not a tax credit; they'er a deduction. If you're in a high tax bracket, yes, you can save thousands in tax, but you...
by asset_chaos
Mon Mar 11, 2024 7:25 pm
Forum: Investing - Theory, News & General
Topic: Embracing Principles [during the dot-com bubble and tech surges?]
Replies: 43
Views: 3959

Re: Embracing Principles Amidst Bitcoin and Nvidia's Surge?

Won't comment on that which cannot be named by forum rules. But with Nvidia the principle I embrace is total market stock investing, which means I've owned Nvidia since shortly after it went public. I've gotten my fair share of whatever surge this particular company has produced. Just like a few years ago when people were agog at Tesla's surge; I'd owned it since shortly after it went public and have gotten my fair share of it's surge. Just like I'll get my fair share of whatever company is next to get something right and grow rapidly from a small to a large company. Always having some of whichever company is winning famously today is just a feature of total market type stock investing.
by asset_chaos
Mon Mar 11, 2024 3:13 am
Forum: Investing - Theory, News & General
Topic: Emerging markets flat
Replies: 57
Views: 4326

Re: Emerging markets flat

Consider total world. An (almost) unsung advantage of total world type stock index investing is exactly not having to see or react to the sub-parts of the index. No matter how you want to slice and catagorize the universe of public companies, there are always segments that are doing poorly. I'm an old enough investor to have held an approximatly globally weighted stock portfolio in four funds prior to 2009 and witnessed the EM fund do a lot better for several years than the tax-managed growth & income fund (essentially S&P 500 index fund). During 2009 I consolidated those funds into total world---a small silver lining to a frightening and deep global market slump---and since have never had to expend mental energy on worrying about w...
by asset_chaos
Sun Mar 10, 2024 7:54 pm
Forum: Personal Investments
Topic: IRA allocation with RMDs not needed for living expenses
Replies: 8
Views: 855

Re: IRA allocation with RMDs not needed for living expenses

I like bonds in such an IRA because they don't act like stocks. I like the lower growth so that RMD amounts are dampened and don't grow large. I like the lower volitility so that RMD amounts have lower year-to-year fluctuations.

I have bonds in an IRA from which I take RMDs. As I'm retired, I want more bonds than the IRA will hold; I have the same bond funds in taxable and in the IRA. As I don't need to spend the RMDs, I have a little bit withheld from the RMD as a convenient way to pay tax and put the rest into the same bond fund in my taxable account. If I want to spend more one year, I take from whichever stock or bond fund in taxable most conveniently helps keep my asset allocation were I want it.
by asset_chaos
Wed Mar 06, 2024 9:45 pm
Forum: Non-US Investing
Topic: TransferWise vs Schwab for EUR to USD recurring transfers
Replies: 72
Views: 9978

Re: TransferWise vs Schwab for EUR to USD recurring transfers

A bit tangential to your original question, but I have seen several posters cautious about using a transfer service (TW or Revolut) to make a direct transfer into a Schwab investment account. Schwab has informed all clients that any EU-based investors (regardless of whether you are temporary or not) are not allowed to invest in US ETFs because US ETFs do not meet EU regulations (no Key Investment Information Documents - KIIDs). Vanguard is even more stringent in not permitting investments from overseas (from the EU or otherwise). So while an EU-based person might use a VPN to connect to the Schwab or Vanguard website, another way the brokerage might know the person is not US-based is by seeing regular transfers from a money transfer servic...
by asset_chaos
Sat Mar 02, 2024 11:42 pm
Forum: Investing - Theory, News & General
Topic: Market cap, portfolio balance, net worth: invalid/misleading concepts?
Replies: 8
Views: 994

Re: Market cap, portfolio balance, net worth: invalid/misleading concepts?

Similarly, calculations of my portfolio balance (and hence net worth) involve the sum of "share_price * shares_held". But it is unlikely that I'd get precisely this amount if I actually tried to sell my whole portfolio even if there were no other trades happening. ... Market cap, enterprise value, portfolio balance are so pervasive in finance and yet their standard interpretations (as described on even Investopedia and Wikipedia) seem invalid. What am I missing? My whole portfolio is a stock index fund. If I sold all of it, I'd be quite confident that I'd receive cash = net asset value x my number of fund shares. And while the value of my stock index fund is large to me, I expect Vanguard wouldn't need to sell stocks to raise cas...
by asset_chaos
Sat Mar 02, 2024 11:10 pm
Forum: Personal Investments
Topic: Avge or VT?
Replies: 23
Views: 2109

Re: Avge or VT?

If you want to make a factor premium bet, how about making it a modest bet? Maybe two-thirds straight total market fund and one-third factor tilted fund. In 50 years you'll either be modestly ahead of the total market or modestly behind, as opposed to being either a lot ahead or a lot behind. More importantly, if you can stick with stocks and add to the Roth every year you're eligible, you'll likely have a good-sized nest egg to support youself with---regardless of how much you factor tilt today.

Oh, and welcome to the forum.
by asset_chaos
Fri Mar 01, 2024 4:14 pm
Forum: Non-US Investing
Topic: Moving country - what currency to hold?
Replies: 3
Views: 1576

Re: Moving country - what currency to hold?

Perhaps don't change anything until you're certain the move will be permanent.
by asset_chaos
Fri Mar 01, 2024 2:15 am
Forum: Personal Investments
Topic: Has anyone invested in marijuana stocks?
Replies: 92
Views: 12505

Re: Has anyone invested in marijuana stocks?

I know that generally Bogleheads focuses on diversity. I couldn't help but notice the stats on some of these stocks. Aurora Cannabis: If you invested $1,000 in 2016, it would have become $20,620 by 2019. Nearly a 2,000% return. Canopy Growth: $1,000 invested at the start of 2016 would be a 3,500% total return to become $35,978. Cronos Group: $1,000 invested at the start of 2016 would be $71,839 today. I'm all for diversity. Company 401K will be cranking up soon with employer match and such. I'm working 50 hours a week and getting 10 hours of overtime weekly. My Roth IRA that I initially planned to throw money at for FSKAX only...I'm thinking of going all-in to something like Cronos for 2-3 years to see where it takes me. It does have some ...
by asset_chaos
Mon Feb 26, 2024 2:45 pm
Forum: Personal Finance (Not Investing)
Topic: Trust Protectors, how common?
Replies: 13
Views: 1604

Re: Trust Protectors, how common?

As our estate lawyer recommended a trust protector 20-odd years ago, I don't think it can be called a new concept. Not being in the law field, I don't keep up with estate law trends, but I do think building in flexibility to a trust is a good idea. Whether a trust protector is still considered a good way to build in flexibility, I don't know. We went kind of half way to what you're thinking on who to name as trust protector: we named a personal friend who is also a lawyer. I suggest discussing with your estate lawyer and seeing what your options are for giving your trust the flexibility to meet your beneficiary's changing needs into the future.
by asset_chaos
Mon Feb 26, 2024 1:31 am
Forum: Personal Investments
Topic: Age 68 w unexpected income... where to invest?
Replies: 3
Views: 933

Re: Age 68 w unexpected income... where to invest?

There's basically three things to do with money. You can save and invest it, in your case just add to existing accounts to keep your asset allocation. You can spend it. Get a second cat for the other side of your head, save up for a round the world cruise, for whatever you want to do. Or, you can give it away. Start or increase donations to your faviorite charity(ies). Then there is secret plan d: do some of all three. You've got nothing but good options. If I were in your shoes, I might pick plan d. But I'm not you, and you have to do what'll make you happy.
by asset_chaos
Sun Feb 18, 2024 12:56 am
Forum: Personal Investments
Topic: Small Cap Value - US/International
Replies: 25
Views: 2402

Re: Small Cap Value - US/International

I would look start by looking at what professional index makers do. For instance there is a MSCI world small cap value index in USD. World in MSCI's parlance means the index covers developed markets only, same as the two funds you are considering. If nothing else, an independent index would let you benchmark your proposed Avantis portfolio to see if the risk and performance of the proposed portfolio were reasonable for the asset class. For what it's worth I own some avdv as part of a modest tilt with total world fund as my core stock investment. While total world tracks it's stated index to within a few basis points, AVDV, which does not try to track any index, has tracked the MSCI world ex-US small cap value index within a couple hundred b...
by asset_chaos
Thu Feb 15, 2024 3:24 am
Forum: Investing - Theory, News & General
Topic: Jason Zweig’s latest WSJ article on ETF/MF taxation
Replies: 25
Views: 4394

Re: Jason Zweig’s latest WSJ article on ETF/MF taxation

livesoft wrote: Thu Feb 15, 2024 12:25 am I'd like a product where all capital gains created by the managers selling winners are attributed to the shares held in the Roth accounts of customers and the capital losses created by the managers are attributed to the shares held in the taxable accounts of customers.
zippity do dah, now we're talking!
by asset_chaos
Tue Feb 13, 2024 6:16 pm
Forum: Investing - Theory, News & General
Topic: What Category of Investment Did Well During the "Lost Decade" (2000s)
Replies: 51
Views: 5435

Re: What Category of Investment Did Well During the "Lost Decade" (2000s)

From memory everything did well that was not large American growth stocks: small, value, ex-US developed and emerging markets, those new-fangled things called TIPs. What the order of doing well was I don't recall, ie did emerging markets do better than domestic small value or vice versa, and did either do better than TIPs. In other words, 2000-2009 was essentially the reverse of 2009-2023. But because the latter is more recent (and a longer interval), it matters more, for investors still in the accumulation stage. In broad strokes, yes, the two time periods are in some sense mirrored. But for the later period mattering more, I think not. We people are subject to recency bias, weighting recent events as more importantly than events futher i...
by asset_chaos
Mon Feb 12, 2024 11:11 pm
Forum: Investing - Theory, News & General
Topic: What Category of Investment Did Well During the "Lost Decade" (2000s)
Replies: 51
Views: 5435

Re: What Category of Investment Did Well During the "Lost Decade" (2000s)

US stocks had a CAGR of 1.2% for the decade. Gold had a CAGR of 15.2% for the decade. It helped with sequence-of-returns-risk for retirees making withdrawals from their portfolios. Thanks. Was it something about gold or was it just that people were unhappy with stocks so put their money in gold. Gold was interesting that decade because the previous decade the price had fallen. In late 90s early 2000s lots of gold mines around the world were shuttered because the price of gold had fallen below their cost of production. Only the lowest cost gold mines stayed open. Australia, and I think several other countries, sold off about three-quarters of the gold reserves held by their respective reserve banks. I don't recall what caused gold to fall o...
by asset_chaos
Mon Feb 12, 2024 10:53 pm
Forum: Investing - Theory, News & General
Topic: What Category of Investment Did Well During the "Lost Decade" (2000s)
Replies: 51
Views: 5435

Re: What Category of Investment Did Well During the "Lost Decade" (2000s)

From memory everything did well that was not large American growth stocks: small, value, ex-US developed and emerging markets, those new-fangled things called TIPs. What the order of doing well was I don't recall, ie did emerging markets do better than domestic small value or vice versa, and did either do better than TIPs.
by asset_chaos
Wed Feb 07, 2024 12:19 am
Forum: Investing - Theory, News & General
Topic: "Vanguard Quietly Embraces AI in $13 Billion of Quant Stock Funds"--Bloomberg
Replies: 34
Views: 4889

Re: "Vanguard Quietly Embraces AI in $13 Billion of Quant Stock Funds"--Bloomberg

I begin to wonder if a big, meainstream investment manager, like Vanguard, has quantitative management with the latest tech for beat-the-market investing for similar reasons for why a mainstream car company, like Honda, has a formula 1 racing team. One reason is to provide a reward pathway for their very best technical talents to earn an opportunity to play with big resources and develop the most cutting edge tech in a competative setting. Hey, figure out how to shave a basis point off running the index funds, and you'll get to manage real money and get the resources to develop AI---or whatever is considered cutting edge at the time---quant stuff. It's not like Vanguard's quantitative equity group just came into being. Gus Suater has talked...
by asset_chaos
Tue Feb 06, 2024 8:56 pm
Forum: Personal Investments
Topic: Total World Stock Index Fund
Replies: 11
Views: 1653

Re: Total World Stock Index Fund

I don't understand why the recommendation of three stock funds. I could see total world and total US to want more than global market weight in the US. I could see having total US and total ex-US to exactly set the ratio of US to ex-US stocks and maybe for slightly reduced cost or optimal fund placement. I could see total world just by itself. But I don't understand the point to those three stock funds together.
by asset_chaos
Tue Feb 06, 2024 8:40 pm
Forum: Personal Investments
Topic: What's your allocation for International Stocks?
Replies: 101
Views: 6956

Re: What's your allocation for International Stocks?

Quite a while ago now (nearly 15 years---god, I'm getting old) I consolidated to total world and no longer have an allocation to US or ex-US. I accept whatever the markets set for the ratio of US to ex-US stocks, and I don't bother to track what that ratio is. I just have an allocation to stocks.
by asset_chaos
Sun Feb 04, 2024 5:52 pm
Forum: Investing - Theory, News & General
Topic: Price premium for S&P500 index? Stocks for the Long Run author believes so
Replies: 17
Views: 3163

Re: Price premium for S&P500 index? Stocks for the Long Run author believes so

There is a Federal Reserve Bank of New York Report from 2012 entitled Is There an S&P 500 Index Effect? . I'll let someone else summarize the entirety of the 55 page paper, but from the abstract (emphasis is from the paper), "We find that the firms included in the S&P 500 index are characterized by large increases in earnings, appreciation in market value, and positive price momentum in the period preceding their index inclusion. ... Contrary to the consensus in the literature, our results indicate that ... index inclusion has no permanent effect on value and comovement." It seems to be saying that firms are included in the S&P 500 index after becoming large and successful. (Academic insights are sometmes awe inspiring...
by asset_chaos
Sun Feb 04, 2024 1:35 am
Forum: Personal Investments
Topic: Skip emerging markets due to tax inefficiencies?
Replies: 26
Views: 2632

Re: Skip emerging markets due to tax inefficiencies?

I use total world, so just accept what's there and don't try to slice it any finer. Avoidance of having to spend mental energy on such questions as whether to sell or hold emerging markets is, to me, a not insubstantial benefit to total world.
by asset_chaos
Sat Jan 27, 2024 4:26 pm
Forum: Investing - Theory, News & General
Topic: Tuning out the Noise documentary about Booth, Fama, et al
Replies: 10
Views: 2254

Re: Free Documentary--"Tune out the Noise"

Just to note the documentary link is at Dimensional's website, you have to give them some personal information and consent to be contacted by email (I guess you could fake the info), and the movie is only available for US, Canada, UK, and Australia (I guess you could also fake that; I didn't check if they try to geofence the content). The consent to be contacted is automatic if you check the US box and proceed to the show; you have to check a box and actively give consent for the other countries. I suppose those are the four countries where Dimensional is licensed to solicit business.
by asset_chaos
Sat Jan 27, 2024 4:04 pm
Forum: Personal Investments
Topic: Advise me on mediocre 401k options
Replies: 8
Views: 719

Re: Advise me on mediocre 401k options

Our wiki has a page on prioritizing investments. Especially with a mediocre 401k you may want to consider other options, like an HSA, pay off debt, and funding an IRA, before putting more into the mediocre 401k above enough to get the match.
by asset_chaos
Fri Jan 26, 2024 4:21 pm
Forum: Investing - Theory, News & General
Topic: How is initial price for an ETF set?
Replies: 5
Views: 825

Re: How is initial price for an ETF set?

As the sponsor of the ETF seeds an initial amount of money into the ETF ($1 million, say), I'd say the sponsor tells the market maker to create an initial batch of ETF shares such that the initial opening price of a share is whatever the sponsor wants, say $10/share or $20/share. The initial price equals the initial seed money divided by the initial number of ETF shares created, and as the sponsor and the market maker control between them those two initial numbers, they can set the initial price to be whatever they want. After the ETF starts trading, the market determines the price, but that initial price is arbitrary.
by asset_chaos
Thu Jan 25, 2024 10:50 pm
Forum: Personal Finance (Not Investing)
Topic: H&R Block 2023 incorrectly reporting taxable IRA distribution
Replies: 141
Views: 18656

Re: H&R Block 2023 incorrectly reporting taxable IRA distribution

While the inherited IRA bug hasn't been fixed, the spurious $2 earned income credit bug has been fixed.
by asset_chaos
Thu Jan 25, 2024 3:28 pm
Forum: Personal Investments
Topic: How did you get over your fear of investing in the market?
Replies: 64
Views: 5021

Re: How did you get over your fear of investing in the market?

I had no fear when first investing in stocks. I'd like to tell you that was a result of a measured and calculating assessment of risk versus reward, but it was most likely a callow misunderstanding of just how risky stocks can be. Then I lived through enough bull and bear markets to also notice the upward sloping trend line of stocks despite the intermittent manias and depressions. Now I have enough pension and bonds to stay comfortable regardless of stock market gyrations. In a nutshell a progression from ignorance -> experience -> aloofness.

Get invested and stay the course.
by asset_chaos
Wed Jan 24, 2024 2:02 am
Forum: Investing - Theory, News & General
Topic: Which of these two ETFs offer the most diversification?
Replies: 69
Views: 6299

Re: Which of these two ETFs offer the most diversification?

If you're going to argue that more diversification means lower numbers for X% of fund in top N holdings (or how fast the cumulant rises as a function of N), then you must believe the ultimate in diversification to be equal weight funds, with 1% in top 10, 10% in top 100, etc. (euqal weight Russell 1000 fund.) If not, how do you decide where to draw the line on diversified or not? And how is that arbitrary line better than the way the market has assigned weights?

Total market funds have a rational and properties that no other kind of fund has. It's the portfolio that all investors collectively hold. There is no rational to invest as much in Lumentum Holdings as in Apple.
by asset_chaos
Sat Jan 20, 2024 10:30 pm
Forum: Personal Finance (Not Investing)
Topic: H&R Block 2023 incorrectly reporting taxable IRA distribution
Replies: 141
Views: 18656

Re: H&R Block 2023 incorrectly reporting taxable IRA distribution

I also see the inherited IRA distribution not being recognized and the $2 of earned income credit showing up on my kids' returns (ironically just after a page that says you are not eligible for the EIC). The update today did not fix, but Block now says another update is due in 5 days. Happily I have plenty of things to keep me busy while waiting for tax software to get right.
by asset_chaos
Fri Jan 19, 2024 6:34 pm
Forum: Non-US Investing
Topic: How do you not "time" the market when not doing DCA [Germany]
Replies: 20
Views: 3226

Re: How do you not "time" the market when not doing DCA [Germany]

Well, as the thread title does mention Germany, and it's in the non-US investing forum, it seems a safe bet that the OP is not in the US.
by asset_chaos
Fri Jan 19, 2024 3:42 pm
Forum: Personal Investments
Topic: Is anyone else putting “fun money” into NVDIA?
Replies: 54
Views: 6223

Re: Is anyone else putting “fun money” into NVDIA?

Not me. However much NVDIA is in total world is plenty for me.

On the other hand, as I'm retired, fun money is what I take out of the portfolio to spend on travel and other fun.
by asset_chaos
Fri Jan 19, 2024 3:21 pm
Forum: Non-US Investing
Topic: How do you not "time" the market when not doing DCA [Germany]
Replies: 20
Views: 3226

Re: How do you not "time" the market when not doing DCA [Germany]

I am not a big fan of the idea of dollar cost averaging as I think this adds up over time in terms of transaction costs. But then the question comes, how frequently do I buy? What should be my green signal to buy, since we aren't waiting for a "low" price? Should I try to reach a target volume of money to buy funds? I wanted to know how people (who aren't doing DCA) avoid the trap of timing the market. Very curious to hear about the approaches the community members are following! Edit: FYI my strategy is limited to purchase of ETFs. There is a transaction cost per purchase with my broker (IBKR), but maybe I am overthinking about the transaction cost. Dollar cost averaging doesn't have to be every week or every pay period. It's a ...
by asset_chaos
Fri Jan 19, 2024 2:13 am
Forum: Personal Finance (Not Investing)
Topic: Basic H&R Block/Turbotax--2 computers, international filing?
Replies: 6
Views: 848

Re: Basic H&R Block/Turbotax--2 computers, international filing?

I live outside the US and have used H&R Block for about the last 10 years and turbotax for about 10 years before that. I have a bit of weirdness to first install HRBlock, but after the first install it updates without any problem. I've already updated this year's version once in early January. I've also been able to e-file from outside the US without any problem associated with being outside the US. (I have had to file forms that somehow made my return non-compliant for e-filing, but that had nothing to do with my computer being outside the US.) As I only install on my desktop, I don't know about installing on two computers at once. If I were in your spot and travelling outside the US during filing season were likely a one time thing, I...
by asset_chaos
Thu Jan 18, 2024 7:54 pm
Forum: Investing - Theory, News & General
Topic: At what invested net worth do contributions start to matter less?
Replies: 48
Views: 8281

Re: At what invested net worth do contributions start to matter less?

There's not a cutoff where fresh savings matter above the cutoff and don't matter below. The simplest bit of math that gets the concept right is to say p_n is your portfolio value at the beginngin of period n. p_n is the sum of fresh savings during the proceeding period, call that s_{n-1}, and the returns on the existing portfolio, which is p_{n-1}(1 + r_{n-1}). For simplicity assume all new savings are invested on the last day of the period, so you don't have to worry about I really save every month which gets part of the year's return. That kind of thing doesn't matter to the basic concept. In symbols we have p_n = p_{n-1}(1 + r_{n-1}) + s_{n-1}. Divide through by p_{n-1} and the left hand side becomes the fractional portfolio return, and...
by asset_chaos
Thu Jan 18, 2024 2:36 pm
Forum: Investing - Theory, News & General
Topic: [TSP I Fund changes to MSCI ex US ex China & Hong Kong index]
Replies: 48
Views: 6546

Re: MSCI ACWI IMI ex USA ex China ex Hong Kong Index (USD)

Google says, "MSCI offers more than 160,000 indexes." Most of the indexes MSCI calculates---or even publishes---would have no associated investable product. I suspect the US government told Blackrock (who manages the TSP still?) to get China out, and Blackrock hired MSCI to make a bespoke index.

My Australian retirement fund has a stock index fund that follows the MSCI developed world ex-Australia, ex-tobacco, ex-(I forget which other tiny industry that excites the ESG crowd, maybe weapons). I don't think any other fund follows that exact index. The point being, that if you want an index and are willing to pay MSCI a fee, they will calculate any bespoke index you want.
by asset_chaos
Tue Jan 16, 2024 3:49 pm
Forum: Non-US Investing
Topic: Vanguard accounts with foreign address
Replies: 28
Views: 3311

Re: Vanguard accounts with foreign address

Change account to a US address, change to brokerage platform, change back to non-US address. Did this last year with wife's Roth (she's not a US citizen). With her there was other paperwork with the W-8 when you're a resident forienger in the US then the W-8 when you're a non-resident foreinger. If OP is US citizen, the W-8 paperwork won't apply. There would be a risk that reverting to foreign address would trigger something inside Vanguard to apply restrictions. I told the flagship rep beforehand what we were doing in order to change her account to brokerage. As they really want people to migrate to the brokerage platform, maybe they in some way facilitated the change for us. I don't know, but we didn't have any problems, just extra delay ...
by asset_chaos
Mon Jan 15, 2024 2:28 pm
Forum: Investing - Theory, News & General
Topic: Efficient markets and the impact of investing across borders
Replies: 29
Views: 2690

Re: Efficient markets and the impact of investing across borders

This is why I don't generally participate any more in such threads. One post in and there's already swearing and shouting.
by asset_chaos
Mon Jan 15, 2024 2:23 am
Forum: Personal Investments
Topic: Private investment opportunity
Replies: 37
Views: 4076

Re: Private investment opportunity

Is this where you read the book Missing Billionares (link is to a thread discussing the book) and learn about the Merton share idea about sizing an investment? With an expected return premium of say 40% over the stock index alternative, risk, oh let's say 4x the stock index, which may be an underestimate especially if you lever, and the book's standard assumption for personal risk aversion, the Merton share suggests no more than a fifth of wealth should be invested in this opportunity, half of the 40% you're thinking of. And that's if the Merton share is the ony way to think about this. I suggest reading the book and its critiques in the thread and deciding for yourself. But, if you're young and must speculate, definitely speculate with les...
by asset_chaos
Wed Jan 10, 2024 3:54 pm
Forum: Investing - Theory, News & General
Topic: SEC Approves 11 spot price Bitcoin ETFs
Replies: 11
Views: 1856

Re: SEC Approves Spot Bitcoin ETFs: What's its Place in a Portfolio?

As I try to avoid speculations, bitcoin will not have a place in my portfolio.
by asset_chaos
Sat Jan 06, 2024 1:56 am
Forum: Personal Investments
Topic: When does Vanguard update its RMD calculations?
Replies: 24
Views: 3915

Re: When does Vanguard update its RMD calculations?

Today I had the email saying 2024 RMD was ready, and had logged on yesterday to change the tax witholding to find 2024's amount was calculated and there on the RMD page.
by asset_chaos
Wed Jan 03, 2024 2:59 pm
Forum: Investing - Theory, News & General
Topic: How do you get out of value investing
Replies: 30
Views: 5129

Re: How do you get out of value investing

Since Jan 1, 2013 I have invested in DFA U.S. Core Equity II Portfolio Institution (DFQTX) (Beta 0.98) which represents my total US equities in my IRA. Backtesting CAGR (Compound annual growth rate ) for VTI (total stock market) from Jan 2013 to Dec 2024 13.28% compared to DFQTX of 12.57% Just finished listening to Rick Ferri The Case Against Factor Investing from 2023 Bogleheads University 501 advanced. Rick Ferri stated, once you make a decision to go with value it is a lifelong investment strategy. So my question is: If you do want to get out of value with minimum losses how would you do it? Any suggestions, beside staying the course and hoping within my life span (age 79) value will outperform. Paul To answer the headline question, as ...
by asset_chaos
Tue Jan 02, 2024 8:16 pm
Forum: Non-US Investing
Topic: Influence of tax on Bogleheads strategy [New Zealand Taxes]
Replies: 12
Views: 2172

Re: Influence of tax on Bogleheads strategy [New Zealand Taxes]

Perhaps the generalization of Boglehead philosophy is to invest with broad diversification at lowest feasible cost. Barring moving from your home country, tax imposts of your home country on investing just go into making up what the lowest feasible cost is for you for global stock investing. The extra tax expense suggests having more home bias than would normally be warrented. But still not too much: there are only 50 names in the S&P NZ share index, and you have to worry about sector concentration risk and non-diversification risk. This page suggests New Zealanders can invest via Hatch Invest in the low cost S&P 500 index fund VOO, as well as several New Zealand 20 index funds. I don't know anything about that page, Hatch, or anyth...
by asset_chaos
Sun Dec 31, 2023 9:59 pm
Forum: Investing - Theory, News & General
Topic: Understanding Morningstar ratings -- VTI three stars?
Replies: 10
Views: 2265

Re: Understanding Morningstar ratings -- VTI three stars?

While I don't use M* ratings for anything, my vague understanding is that their stars reflect both past performance and risk relative to catagory averages. M* puts each stock fund into a catagory (large blend, small growth, emerging market, whatever). I suspect the catagory average return and risk for the large blend catagory, which is where a total market fund would be, are quite close to total market return and risk. A 3* rating is not bad, it says the return and risk of the fund were close to catagory averages. More stars mean some combination of higher return and/or lower risk; fewer stars mean some combination of lower return and/or higher risk. But always relative to the catagory average. My guess is that M*'s methodology means that t...
by asset_chaos
Sun Dec 31, 2023 9:32 pm
Forum: Personal Investments
Topic: Day/Swing Trading
Replies: 45
Views: 4233

Re: Day/Swing Trading

While I don't advocate day trading, if you want to see how you do with trading, perhaps start with a demonstration account where you can simulate trading without risking real money. Keep proper records on your trading, including on what tax liabilities your trading would have generated. Practice for some months and see how you do. Sometimes experience is the best teacher.

If I google "brokerage with dummy account to practice trading", I immediately see three brokerages with such accounts and one comparison page, "Compare the 7 best demo trading accounts in 2024".