Search found 204 matches

by villars
Thu Mar 12, 2020 7:31 pm
Forum: Investing - Theory, News & General
Topic: Reality Check - Don't assume prices will go up
Replies: 44
Views: 4055

Re: Reality Check - Don't assume prices will go up

Agree with the OP . His statement is basically the Efficient Market hypothesis which states that the price of stocks takes into account all known information including the fact that stocks recovered after every single crash in the past . Having said that, there is such a thing as panic selling and s...
by villars
Thu Mar 12, 2020 7:15 pm
Forum: Investing - Theory, News & General
Topic: Honest Question - Did I waste $20K?
Replies: 24
Views: 2827

Re: Honest Question - Did I waste $20K?

No one knows.
But seriously, you expect Bogleheads to give an unbiased opinion on the purchase of individual company stocks?.
You may not have goofed but you certainly "sinned" . Diversify risk. Always.
by villars
Thu Mar 12, 2020 7:03 pm
Forum: Personal Investments
Topic: Who is staying course and how are you dealing with net worth going down?
Replies: 359
Views: 25878

Re: Who is staying course and how are you dealing with net worth going down?

Staying the course. Well technically my allocation just became more conservative ( bonds went from 20 to 24 %. My bond allocation should be 21% per my age based personal formula) . I usually rebalance with new money only. But because of potential effects of covid on work income, I am holding on to t...
by villars
Thu Mar 12, 2020 6:38 pm
Forum: Investing - Theory, News & General
Topic: How is this pandemic different than 2008?
Replies: 137
Views: 7429

Re: How is this pandemic different than 2008?

It is very logical that stock market should tank when economic activity is curtailed in response to the epidemic. It is not just the number of deaths. We could have an earthquake tomorrow kill more than Covid and stock market will stay good. See Tsunami disaster for an event with a huge human toll b...
by villars
Thu Mar 12, 2020 6:27 pm
Forum: Personal Investments
Topic: Capitulation
Replies: 59
Views: 5306

Re: Capitulation

I am literally doing nothing right now. I have not checked the portfolio total. Have not checked the allocation. Have not rebalanced. I was holding on to some cash until I calculated my taxes before investing it, and now I am just holding onto it as extra emergency money. Had some money set aside fo...
by villars
Tue Nov 06, 2018 1:07 pm
Forum: Investing - Theory, News & General
Topic: Larry Swedroe: What To Do When An Investment Strategy Performs Poorly
Replies: 11
Views: 1941

Re: Larry Swedroe: What To Do When An Investment Strategy Performs Poorly

asif408 wrote:
Tue Nov 06, 2018 10:42 am

As goblue cited above, temperament and patience are not qualities abundant among a good majority of Bogleheads.
:confused Are we reading the same board? Mantras of "Buy and Hold" , "Stay the Course" , "Don't time the market" are in every thread. If the BH's are not patient, who is?
by villars
Mon Oct 29, 2018 6:03 pm
Forum: Investing - Theory, News & General
Topic: 401k down 8% this month
Replies: 58
Views: 7373

Re: 401k down 8% this month

At the peak I was looking towards a big round number milestone by the end of the year. I even sent a bit extra to Vanguard "to get closer" . Alas it is not meant to be this year. Maybe next.
by villars
Thu Oct 11, 2018 7:31 pm
Forum: Personal Investments
Topic: Pre-Tax TIAA Traditional vs taxable VWITX
Replies: 5
Views: 595

Re: Pre-Tax TIAA Traditional vs taxable VWITX

Q: Where should I put my "bonds" investment in a pre-tax TIAA Traditional yielding 3.5% currently or taxable VWITX (SEC yield 2.56)? Standard answer is bonds go in Tax advantaged. Only reason to buy VWITX is if you anticipate running out of tax advantaged space for bonds by the time you retire. To ...
by villars
Thu Oct 11, 2018 6:48 pm
Forum: Personal Investments
Topic: 56-year-old beginning the Boglehead journey - portfolio & tax efficiency questions
Replies: 7
Views: 1186

Re: 56-year-old beginning the Boglehead journey - tax efficiency question

welcome to bogleheads. You buy an index fund of stocks ( either US , or international+US ) with the 197K . Most retirement accounts offer a fund indexed to the SP500 with reasonably low costs . As stocks outgrow bonds, you may run into the scenario where your entire tax advantaged space is full of b...
by villars
Thu Oct 11, 2018 10:23 am
Forum: Personal Investments
Topic: anybody sell I Bonds to buy something else?
Replies: 49
Views: 5794

Re: anybody sell I Bonds to buy something else?

No. I would have to pay tax on the interest accrued so far. And I would not have the chance to buy them back.
by villars
Thu Oct 11, 2018 10:20 am
Forum: Investing - Theory, News & General
Topic: Short Term Bond yield over 3%
Replies: 74
Views: 11625

Re: Short Term Bond yield over 3%

I was in my accounts today and noticed that the SEC yield on the Vanguard Short Term Bond Fund (Admiral: VBIRX) is 3.01% :happy Correct me if I'm wrong. But the only way the yield goes up on a bond fund in one day is if the price of the fund has dropped. It is not like the fund manager just purchas...
by villars
Wed Oct 10, 2018 10:19 am
Forum: Investing - Theory, News & General
Topic: U.S. stocks in free fall
Replies: 18784
Views: 2626162

Re: Stocks tumbling?

The only thing I could find was this https://tickertape.tdameritrade.com/market-news/rates-tick-up-and-inflation-data-rise-17038 about new data: " Some data checked in early Wednesday, with the headline and core producer price index for September both rising 0.2%. That was in line with Wall Street a...
by villars
Sun Oct 07, 2018 7:36 pm
Forum: Personal Finance (Not Investing)
Topic: Can you give "spousal" health insurance to a non-spouse?
Replies: 31
Views: 1735

Re: Can you give "spousal" health insurance to a non-spouse?

While I feel for your friend, there is a reason why you can't extend benefits to a non-relative: adverse selection. If insurance allowed everyone "one designated other benefeciary", everyone would pick the sickest friend they know.
by villars
Sat Oct 06, 2018 4:09 pm
Forum: Investing - Theory, News & General
Topic: [Deleted]
Replies: 153
Views: 14519

Re: Barron's Making the Case for Gold

Gold's allure is its long history as an accepted medium of exchange and store of value ( i.e money). Throughout history, only silver has occasionally challenged Gold on this account. Take away Gold's utility as potential money , and its value would plummet . Its uses in jewelry and electronics do no...
by villars
Thu Sep 27, 2018 7:18 pm
Forum: Personal Investments
Topic: Fund Placement for Tax-Efficiency vs. Growth
Replies: 4
Views: 506

Re: Fund Placement for Tax-Efficiency vs. Growth

When choosing my asset allocation, I tried to place my funds according to tax-efficiency as described on the Wiki. But recently, a financial advisor (during a brief chat) suggested it would help me to diversify in case there's a lot of growth, for example. The Wiki seems to support this in one para...
by villars
Wed Sep 19, 2018 10:14 pm
Forum: Investing - Theory, News & General
Topic: How likely is it for a corporate bond rated BAA3/BBB to fail?
Replies: 16
Views: 1798

Re: How likely is it for a corporate bond rated BAA3/BBB to fail?

Right now, the reward just isn't there. https://fred.stlouisfed.org/series/BAMLC0A4CBBB I read that all the time on this board. Corporate bonds are not worth the risk, and "take risk on the equity side" If that is true, wouldn't the lack of demand cause the price of corporate bonds to drop ( ie yie...
by villars
Tue Sep 18, 2018 11:04 pm
Forum: Personal Consumer Issues
Topic: What is your single most expensive mistake?
Replies: 293
Views: 28192

Re: What is your single most expensive mistake?

Financing home at 100% in 2006. Trying to sell it in 2009 while underwater. Not contributing to 401k from 2010 to 2013 because " I learned from my mistake" and this time I was going to have a 20% down payment. :oops: On the good side, I was about to sign up with a financial advisor in 2013 when he r...
by villars
Sun Sep 16, 2018 2:49 pm
Forum: Personal Investments
Topic: Am I "buying high" if I transfer stable value funds over to stock index fund now?
Replies: 26
Views: 2250

Re: Am I "buying high" if I transfer stable value funds over to stock index fund now?

This is a similar question to DCA vs lump sum. Only difference is that the downside of putting the 50% in stocks and then suffering a correction is worse because you are entering retirement.

My advice is to put 25% of portfolio is stocks now. Another 25% in one year.
by villars
Thu Sep 13, 2018 10:00 pm
Forum: Investing - Theory, News & General
Topic: Mother, can I trust the stock market?
Replies: 19
Views: 2501

Re: Mother, can I trust the stock market?

My understanding is that the stocks are actually in the hands of a custodian. And that financial institutions have to run periodic 3rd party audits to confirm that. At least that is what 401k plans seem to do. If someone lies and defrauds stockholders, SIPC will step in to reimburse them. It did so ...
by villars
Sun Sep 09, 2018 5:51 pm
Forum: Personal Investments
Topic: What happens when a country goes from VWO -> VEA?
Replies: 14
Views: 1293

Re: What happens when a country goes from VWO -> VEA?

.....If so I wonder if a better approach is to do VXUS instead of VEA+VWO. But my concern is VXUS has a much lower AUM than VEA and VWO, which for taxable could mean a higher chance of changes (and therefore realizing capital gains) down the road. I don't understand what OP meant by this sentence. ...
by villars
Sun Sep 09, 2018 5:43 pm
Forum: Personal Investments
Topic: Non discrimination testing and Mega back door
Replies: 2
Views: 395

Non discrimination testing and Mega back door

My employer's 401k plan does not have the requirements needed to do the Mega back door Roth . Specifically the plan does not allow after-tax contributions. Employer is open to the idea of amending the plan. However, there is a concern that the after-tax contributions would all come from the highly c...
by villars
Wed Sep 05, 2018 12:14 pm
Forum: Investing - Theory, News & General
Topic: 100% Bonds to boost returns?
Replies: 61
Views: 7356

Re: 100% Bonds to boost returns?

As you know, 10 year equity return forecasts are quite low. ..... Given that stocks are riskier, it seems only logical to be 100% bonds at this time. Maybe a splash of equities for diversification sake, but no more than a 'splash' (as Bogle likes to say). My gut feeling is that this is not logical ...
by villars
Tue Sep 04, 2018 9:44 pm
Forum: Personal Consumer Issues
Topic: How to "waste" money on groceries?
Replies: 109
Views: 10274

Re: How to "waste" money on groceries?

Go grocery shopping when you are hungry. You will buy stuff that looks appetizing at the time, but that you will throw out in 2 weeks, untouched.
by villars
Tue Sep 04, 2018 9:10 pm
Forum: Personal Consumer Issues
Topic: How much do you spend on kids extracurriculars?
Replies: 85
Views: 5497

Re: How much do you spend on kids extracurriculars?

TomatoTomahto wrote:
Mon Sep 03, 2018 12:47 pm
Just don’t let them become ice hockey goalies.
Or a figure skater. Coaches, ice time and competition travel for DD have eaten up the cash flow freed up by paying off the mortgage.
But I would not have it any other way.. :happy
by villars
Thu Aug 30, 2018 10:09 pm
Forum: Personal Consumer Issues
Topic: Let a property management company to manage your house?
Replies: 10
Views: 1744

Re: Let a property management company to manage your house?

Fees are typical. My property manager used to charge 10% of rent, but did not charge extra for marketing. They also offered "eviction insurance " for an extra fee . I said "used to" because I was very happy when we finally sold the house after renting for 4 years. Worst part was dreading any email w...
by villars
Wed Aug 29, 2018 8:00 pm
Forum: Personal Consumer Issues
Topic: Microsoft adding stock quote functionality to Excel
Replies: 12
Views: 5505

Re: Microsoft adding stock quote functionality to Excel

I've been using Google spreadsheet, free and easy to implement. Except that the Googlefinance(".inx") function which used to give SP500 value is not working anymore. I have to manually type the SP500 myself now :annoyed ( i use it to estimate funds in 401k that do not have tickers but track the SP5...
by villars
Sun Aug 26, 2018 6:04 pm
Forum: Investing - Theory, News & General
Topic: Which bond index fund best in taxable acct?
Replies: 22
Views: 2965

Re: Which bond index fund best in taxable acct?

I am in similar tax bracket. I usually buy tax exempt munis with new savings to keep allocation at target. I have occasionally renalanced stocks to bonds in one of my 401k accounts , but that is not my usual approach for 3 reasons : 1. Laziness. Easier to log into vanguard and buy muni fund than log...
by villars
Sun Aug 26, 2018 5:48 pm
Forum: Investing - Theory, News & General
Topic: The first million is the hardest?
Replies: 46
Views: 10235

Re: The first million is the hardest?

I have found a small downside to having accumulated a significant amount. When market gyrations dwarf your contributions it is harder to maintain the discipline to save.
by villars
Sun Aug 26, 2018 4:15 pm
Forum: Investing - Theory, News & General
Topic: What happens to TIPS if both inflation AND interest rates rise?
Replies: 8
Views: 934

Re: What happens to TIPS if both inflation AND interest rates rise?

c) Are you more interested in future purchasing power or dollar values? Many of us only care about purchasing power, so TIPS removes a variable. If you are only interested in dollar value, then TIPS adds a variable. I am interested in purchasing power of course. Thing is that my IPS ( really an exc...
by villars
Sun Aug 26, 2018 4:07 pm
Forum: Investing - Theory, News & General
Topic: What happens to TIPS if both inflation AND interest rates rise?
Replies: 8
Views: 934

Re: What happens to TIPS if both inflation AND interest rates rise?

Think in real dollars....If the real interest rate (inflation-corrected) doesn't change, nothing happens. If it does change, TIPS are affected by the same way interest rates affect any other bond fund, it's just that what matters is the real interest rate, not the nominal interest rate. THank you f...
by villars
Sun Aug 26, 2018 12:46 am
Forum: Personal Finance (Not Investing)
Topic: Varying college costs across kids in the same family
Replies: 92
Views: 5607

Re: Varying college costs across kids in the same family

To illustrate why not to have a hard and fast rule: You are child B. Child A has always seemed brilliant and succeeded in everything they have done. Perfect grades in school. Full ride at prestigious university. Accepted a very high paying job after graduation. You, child B, have struggled with edu...
by villars
Sun Aug 26, 2018 12:12 am
Forum: Investing - Theory, News & General
Topic: Call the Top!
Replies: 101
Views: 13105

Re: Call the Top!

3560.5
by villars
Sat Aug 25, 2018 11:17 am
Forum: Investing - Theory, News & General
Topic: What happens to TIPS if both inflation AND interest rates rise?
Replies: 8
Views: 934

What happens to TIPS if both inflation AND interest rates rise?

I just bought a small amount of TIPS ( VIPSX to be precise, duration 7.8 years per Vanguard website). Then I read the news that the Fed would continue to raise rates slowly . And it got me wondering what would happen if the Fed starts raising rates quickly ? In my (limited) understanding of bonds, I...
by villars
Sun Sep 17, 2017 2:32 pm
Forum: Personal Finance (Not Investing)
Topic: Best way to dispute/correct IRS bill
Replies: 18
Views: 2338

Resolution Re: Best way to dispute/correct IRS bill

OP here. Thanks for all the replies. A final update. I ended up trying to contact IRS by phone. Kept going from menu to menu option and never spoke to a real person. So I gave up on the phone, and wrote a letter where I said I agree partially with the IRS assessment, that I owed additional tax, but ...
by villars
Fri Jul 14, 2017 9:18 am
Forum: Personal Finance (Not Investing)
Topic: Do you consider business travel to be a perk or a burden?
Replies: 117
Views: 11190

Re: Do you consider business travel to be a perk or a burden?

as many said, when you are young and childless , it's a perk. When kids arrive it is burden. Was a factor in my quitting my last job 8 years ago. Getting ahead in that career required travel to meetings etc and meant missing out on family time.
by villars
Mon Jul 03, 2017 1:42 pm
Forum: Personal Finance (Not Investing)
Topic: Best way to dispute/correct IRS bill
Replies: 18
Views: 2338

Re: Best way to dispute/correct IRS bill

How many Vanguard accounts do you have? Brokerage and Roth. I only buy VG mutual funds, no ETFs. The other possibility is that VG upgraded you to a brokerage account during 2015. In which case you could have had only one account but the regular 1099-DIV covers the first part of the year and the Con...
by villars
Sun Jul 02, 2017 11:21 pm
Forum: Personal Finance (Not Investing)
Topic: Best way to dispute/correct IRS bill
Replies: 18
Views: 2338

Re: Best way to dispute/correct IRS bill

Look at lines 9a and 9b of your 2015 return...... My guess is the person that prepared you tax return failed to enter anything on line 9a. Filing a 1040X is quite simple. You can get the form and instructions online from the IRS. Thank you for feedback. OK , I looked. First of all, it turns out I a...
by villars
Sun Jul 02, 2017 9:00 pm
Forum: Personal Finance (Not Investing)
Topic: Best way to dispute/correct IRS bill
Replies: 18
Views: 2338

Best way to dispute/correct IRS bill

I got a notice from IRS for tax year 2015 saying I owe about $1730 due to unreported dividends, mostly from my taxable vanguard accounts. In the letter the IRS sent me they have an "Explanation" of changes, where they correctly list the accounts under Qualified Dividends heading ( and correctly say ...
by villars
Thu Apr 20, 2017 4:01 pm
Forum: Investing - Theory, News & General
Topic: Anybody purposely loading up on mortgage debt?
Replies: 107
Views: 12631

Re: Anybody purposely loading up on mortgage debt?

boknows wrote:
zotty wrote:It doesn't get mentioned much, but outright home ownership of your family home is one of the best asset protection moves you can make with taxable money.
Explain this to me like I'm young and ignorant? :confused
In most states, creditors cannot go after your home. I.e protection against lawsuits
by villars
Tue Apr 11, 2017 10:18 pm
Forum: Personal Finance (Not Investing)
Topic: Milestone reached.
Replies: 14
Views: 3057

Re: Milestone reached.

random_walker_77 wrote:
(Apart from your spouse, don't tell anyone you know in real life about this milestone!)
Of course, which is why I had to share this here :beer
by villars
Tue Apr 11, 2017 10:16 pm
Forum: Personal Finance (Not Investing)
Topic: Milestone reached.
Replies: 14
Views: 3057

Re: Milestone reached.

Congrats! You've come a long way in a few short years. Now, not meaning to ruin a good celebration, but are you mentally prepared for a 50% drop in stocks? Will you stick with your saving and investing plan if that happens, which might include exchanging from bonds to stocks to maintain your AA as ...
by villars
Sun Apr 09, 2017 7:43 pm
Forum: Personal Finance (Not Investing)
Topic: Milestone reached.
Replies: 14
Views: 3057

Milestone reached.

Just wanted to share reaching one of my financial milestones. I had just updated my retirement portfolio spreadsheet and the total was 1,008,000 . :D One of my earliest posts on Bogleheads ended with this advice from user Saving$: Set a goal of $1 mil total in taxable/non taxable accounts and mortga...
by villars
Sat Nov 19, 2016 9:10 pm
Forum: Personal Finance (Not Investing)
Topic: how much to save for retirement
Replies: 30
Views: 5967

Re: how much to save for retirement

to pick which specialty to go into. I will be 38-39 when I actually have a sizeable income ($200-300k depending on the field) and thus will have also $350k in loans Do those 350K in loans include a house or are they mostly student loans? In other words, if your net worth is negative 350K, you need ...
by villars
Tue Nov 15, 2016 2:54 pm
Forum: Investing - Theory, News & General
Topic: Muni bonds are getting killed. Are you bailing out?
Replies: 88
Views: 20328

Re: Muni bonds are getting killed. Are you bailing out?

THanks for the heads up . I was not paying attention to Munis. Per my AA, I need to buy bonds with next purchase . So I will be buying some Munis now that yield is going up slightly. My short term goal is to hit the 50,000 number on VWITX so I can get the Admiral version ( VWIUX is the ticker I thin...
by villars
Fri Oct 28, 2016 5:26 pm
Forum: Investing - Theory, News & General
Topic: Why Doesn't the DOL Understan the Term "Fiduciary"?
Replies: 21
Views: 4029

Re: Why Doesn't the DOL Understan the Term "Fiduciary"?

I can see this rule backfiring. Because an advistor can now be sued for being a bad fiduciary, they will need to get malpractice insurance ( kind of like doctors have to). So advisors will have increased costs they have to cover, and it will discourage people from entering the business , driving awa...
by villars
Fri Oct 28, 2016 3:58 pm
Forum: Personal Investments
Topic: Worried about negative bond real rates
Replies: 1
Views: 808

Worried about negative bond real rates

I have about 16% of my AA to bonds, with target of 50/50 by retirement. I think of the bond portion of my portfolio as money that is not at (significant) risk, kind of "off the table and not in play anymore". The bonds are mostly intermediate duration ( either vanguard total bond, pmico's PTTRX or V...
by villars
Thu Oct 27, 2016 4:12 pm
Forum: Personal Finance (Not Investing)
Topic: Debt Free... Now What?
Replies: 28
Views: 4653

Re: Debt Free... Now What?

Congratulations on paying off your debt , and on the successful company sale.

It sounds like you need a well deserved vacation. Also google "the U curve". You are a bit young for that, but some of the signs fit.
by villars
Wed Oct 26, 2016 8:43 pm
Forum: Personal Investments
Topic: next bond purchase: iBonds vs Pimco vs Munis
Replies: 4
Views: 1159

Re: next bond purchase: iBonds vs Pimco vs Munis

I'd choose the muni. Why? --Because I'm already using munis. --Munis are simpler to manage than I bonds and have no annual contribution limit. --Munis pair nicely with TSM/TISM to extend 3-fund portfolio into taxable investing---no need to rejigger other holdings (401k,...) to maintain AA. --VWITX ...
by villars
Tue Oct 25, 2016 9:12 pm
Forum: Personal Finance (Not Investing)
Topic: Are Pre-existing conditions still a thing?
Replies: 8
Views: 1704

Re: Are Pre-existing conditions still a thing?

Don't forget to check if your doctors are in network on the new plan. My understanding is that employers/ insurance companies can still have a 90-day waiting period before benefits kick in once you sign up, regardless of pre-existing conditions. If that is the case, make sure you do your follow-up C...
by villars
Tue Oct 25, 2016 8:48 pm
Forum: Personal Investments
Topic: Please help with mistake in backdoor Roth 8606 for last year.
Replies: 3
Views: 496

Re: Please help with mistake in backdoor Roth 8606 for last year.

I'm not an expert on this , so caveat emptor. My understanding is this : - you contributed $5,500 in Feb 2016 for tax year 2015 . This is non-deductible traditional IRA contribution and should have been reported in the 2015 tax return - you converted it to Roth in Feb 2016 . So you should get a 1099...