Search found 5613 matches

by avalpert
Thu Sep 21, 2017 6:32 pm
Forum: Investing - Theory, News & General
Topic: Larry Swedroe: Vanguard Debunks Dividend Myth
Replies: 113
Views: 10849

Re: Larry Swedroe: Vanguard Debunks Dividend Myth

I've always found the discussion about dividend-paying stocks pointless at this level of abstraction. Surely it's better for some companies to pay dividends, because they have no opportunity for deploying that capital at good rates of growth. And better for other companies to re-invest dividends, b...
by avalpert
Thu Sep 21, 2017 6:28 pm
Forum: Investing - Theory, News & General
Topic: Larry Swedroe: Vanguard Debunks Dividend Myth
Replies: 113
Views: 10849

Re: Larry Swedroe: Vanguard Debunks Dividend Myth

Avalpert, (Lunch Time/response). First of all I would like to say your responses are very good & I understand exactly what you are saying. Ok (let me get my thoughts together). If I were to invest 100% in the TSM. The ER would be a bit lower, the dividend would be 50% lower, but I would be much mor...
by avalpert
Thu Sep 21, 2017 12:54 pm
Forum: Investing - Theory, News & General
Topic: Larry Swedroe: Vanguard Debunks Dividend Myth
Replies: 113
Views: 10849

Re: Larry Swedroe: Vanguard Debunks Dividend Myth

Good morning Avalpert, I' am on my way to work but I wanted to get your response to this article. I feel that your a very knowledgeable & educated investor & I would appreciate your opinion on it. Thank you & enjoy this article... http://www.dividendgrowthinvestor.com/2015/09/financial-independence...
by avalpert
Thu Sep 21, 2017 9:22 am
Forum: Investing - Theory, News & General
Topic: Larry Swedroe: Vanguard Debunks Dividend Myth
Replies: 113
Views: 10849

Re: Larry Swedroe: Vanguard Debunks Dividend Myth

I think it is clear that Capital Appreciation is better than Dividends from a total after-tax return perspective because you have better control of how much and when you pay taxes. The tax rate is the same today. If your stocks are held in a retirement account, this is a mute point. However, I don'...
by avalpert
Thu Sep 21, 2017 9:19 am
Forum: Investing - Theory, News & General
Topic: Larry Swedroe: Vanguard Debunks Dividend Myth
Replies: 113
Views: 10849

Re: Larry Swedroe: Vanguard Debunks Dividend Myth

I've always found the discussion about dividend-paying stocks pointless at this level of abstraction. Surely it's better for some companies to pay dividends, because they have no opportunity for deploying that capital at good rates of growth. And better for other companies to re-invest dividends, b...
by avalpert
Wed Sep 20, 2017 12:51 pm
Forum: Personal Finance (Not Investing)
Topic: The Magic of Savings Rate
Replies: 93
Views: 8988

Re: The Magic of Savings Rate

I don't think the chart really works all that well at the outlier numbers. Even if my savings rate was 100%, I wouldn't be under two years from FI (I imagine that's true for most). Likewise, even if I only saved 5%, I'm fairly certain I could retire before I die (probably won't make it another 66 y...
by avalpert
Wed Sep 20, 2017 12:32 pm
Forum: Personal Finance (Not Investing)
Topic: Calling out the not so rich bogleheads
Replies: 191
Views: 19875

Re: Calling out the not so rich bogleheads

wrongfunds wrote:
Wed Sep 20, 2017 11:22 am
Have you ever came across a "rich" boglehead on this forum?
Absolutely, everybody with more money than me is rich - everybody with less is poor and I am perfectly middle class.
by avalpert
Wed Sep 20, 2017 12:30 pm
Forum: Personal Finance (Not Investing)
Topic: The Magic of Savings Rate
Replies: 93
Views: 8988

Re: The Magic of Savings Rate

I don't think the chart really works all that well at the outlier numbers. Even if my savings rate was 100%, I wouldn't be under two years from FI (I imagine that's true for most). Likewise, even if I only saved 5%, I'm fairly certain I could retire before I die (probably won't make it another 66 y...
by avalpert
Wed Sep 20, 2017 12:18 pm
Forum: Investing - Help with Personal Investments
Topic: solo 401k, husband and wife LLC
Replies: 20
Views: 686

Re: solo 401k, husband and wife LLC

Vanguard just told me probably best to wait to set up the solo 401k until next year as I already contributed to my SEP this year because the IRS only allows 1 active plan a year. So, just setting it up this year, might cause a problem. Make sense..or not? It depends on what type of SEP plan it is -...
by avalpert
Wed Sep 20, 2017 12:04 pm
Forum: Investing - Help with Personal Investments
Topic: solo 401k, husband and wife LLC
Replies: 20
Views: 686

Re: solo 401k, husband and wife LLC

Vanguard just told me probably best to wait to set up the solo 401k until next year as I already contributed to my SEP this year because the IRS only allows 1 active plan a year. So, just setting it up this year, might cause a problem. Make sense..or not? It depends on what type of SEP plan it is -...
by avalpert
Wed Sep 20, 2017 12:03 pm
Forum: Investing - Help with Personal Investments
Topic: Paying off primary mortgage
Replies: 24
Views: 1872

Re: Paying off primary mortgage

What is you asset allocation? When you say you don't "need" the write off for taxes what does that mean - does that mean you take the standard deduction? What would the tax costs be in taking the money out of your investments? The comparison you should be making is between the cost of debt and the r...
by avalpert
Wed Sep 20, 2017 11:59 am
Forum: Investing - Help with Personal Investments
Topic: solo 401k, husband and wife LLC
Replies: 20
Views: 686

Re: solo 401k, husband and wife LLC

avalpert In my situation, should I go Roth on the employee contribution or pre-tax? Looking in Quickbooks, pre-tax would lower my state payroll taxes a bit, FICA stays the same. What is your current marginal tax rate and what do you anticipate your marginal tax rate to be in retirement? 25% now, sa...
by avalpert
Wed Sep 20, 2017 11:55 am
Forum: Investing - Theory, News & General
Topic: Larry Swedroe: Dividend Strategies Fall Short
Replies: 15
Views: 1416

Re: Larry Swedroe: Dividend Strategies Fall Short

I would think one could put together a reasonably diverse portfolio of non-dividend payers, but if no such ETF exists this could be a justification for holding some individual stocks within a Boglehead perspective. We have a poster here who does just that - see the third post: https://www.boglehead...
by avalpert
Wed Sep 20, 2017 11:52 am
Forum: Investing - Theory, News & General
Topic: Larry Swedroe: Dividend Strategies Fall Short
Replies: 15
Views: 1416

Re: Larry Swedroe: Dividend Strategies Fall Short

Larry Swedroe said: Perhaps surprisingly, dividend ETFs outperformed during periods of rising interest rates, but underperformed during the period of falling rates. Wow, I would expect the opposite. I would expect that High Dividend would underperform in a rising interest rate environment. I wish h...
by avalpert
Wed Sep 20, 2017 11:43 am
Forum: Investing - Help with Personal Investments
Topic: solo 401k, husband and wife LLC
Replies: 20
Views: 686

Re: solo 401k, husband and wife LLC

theplayer11 wrote:
Wed Sep 20, 2017 11:02 am
avalpert
In my situation, should I go Roth on the employee contribution or pre-tax? Looking in Quickbooks, pre-tax would lower my state payroll taxes a bit, FICA stays the same.
What is your current marginal tax rate and what do you anticipate your marginal tax rate to be in retirement?
by avalpert
Wed Sep 20, 2017 9:53 am
Forum: Investing - Help with Personal Investments
Topic: Where do mid-caps fit it?
Replies: 13
Views: 1185

Re: Where do mid-caps fit it?

large/mid/small cap labels are arbitrary and used differently by different index and fund providers - so I don't see any reason to target set percentages of them for their own sake. What are you looking to accomplish in your portfolio strategy? Once you know that you don't need recommended targets ...
by avalpert
Wed Sep 20, 2017 9:20 am
Forum: Investing - Help with Personal Investments
Topic: solo 401k, husband and wife LLC
Replies: 20
Views: 686

Re: solo 401k, husband and wife LLC

Hi, I would like some advice on possibly setting up a solo 401k. Background: -Husband and wife LLC, file as Scorp-50% owners - my W2 income $37.5k(includes HSA contribution and 1/2 Health Ins. premiums) - wife W2 income $30.5k -already have a SEP established and maxed out with $17k this year Up unt...
by avalpert
Wed Sep 20, 2017 9:10 am
Forum: Investing - Help with Personal Investments
Topic: Where do mid-caps fit it?
Replies: 13
Views: 1185

Re: Where do mid-caps fit it?

large/mid/small cap labels are arbitrary and used differently by different index and fund providers - so I don't see any reason to target set percentages of them for their own sake. What are you looking to accomplish in your portfolio strategy? Once you know that you don't need recommended targets ...
by avalpert
Wed Sep 20, 2017 8:26 am
Forum: Investing - Theory, News & General
Topic: Larry Swedroe: Vanguard Debunks Dividend Myth
Replies: 113
Views: 10849

Re: Larry Swedroe: Vanguard Debunks Dividend Myth

Last year my taxes were not bad at all (I got a refund). Whether you got a refund or owed in April is not at all an indicator of whether your taxes were high or low for what they could be. What was your effective tax rate? Your marginal tax rate? How much did you pay in taxes on dividends and how m...
by avalpert
Wed Sep 20, 2017 8:18 am
Forum: Investing - Help with Personal Investments
Topic: Where do mid-caps fit it?
Replies: 13
Views: 1185

Re: Where do mid-caps fit it?

large/mid/small cap labels are arbitrary and used differently by different index and fund providers - so I don't see any reason to target set percentages of them for their own sake. What are you looking to accomplish in your portfolio strategy? Once you know that you don't need recommended targets f...
by avalpert
Tue Sep 19, 2017 7:11 pm
Forum: Personal Finance (Not Investing)
Topic: The Magic of Savings Rate
Replies: 93
Views: 8988

Re: The Magic of Savings Rate

heybro wrote:
Tue Sep 19, 2017 5:42 pm
So, is it really not how much you earn but how much you save?
Savings is a function of earnings and spend - if you earn more and hold spend constant you save more.
by avalpert
Tue Sep 19, 2017 6:28 pm
Forum: Personal Finance (Not Investing)
Topic: New BOA Premium Rewards Card
Replies: 29
Views: 1620

Re: New BOA Premium Rewards Card

I misunderstood the original post. Those are two different cards. The OP assumes somebody has $100k sitting at BOA. I don't and likely never will. I do keep over $25k. Why not? Move an IRA over to Merrill Edge transfer in kind and you get their new account bonus and higher cashback on your purchase...
by avalpert
Tue Sep 19, 2017 6:25 pm
Forum: Investing - Theory, News & General
Topic: Larry Swedroe: Vanguard Debunks Dividend Myth
Replies: 113
Views: 10849

Re: Larry Swedroe: Vanguard Debunks Dividend Myth

My mistake on the taxation but you do not know which will perform better the next 20 years because of the last few. Your right, I don't. But I do know that SCHD has no meaningful factor exposure that would increase expected returns and the risk associated with reducing diversification isn't expecte...
by avalpert
Tue Sep 19, 2017 6:22 pm
Forum: Investing - Theory, News & General
Topic: Larry Swedroe: Vanguard Debunks Dividend Myth
Replies: 113
Views: 10849

Re: Larry Swedroe: Vanguard Debunks Dividend Myth

Artsdoctor, Hello. It is interesting... I' am a young guy (age 23 - age 100 mortality age = 77 investing years). My Mom wanted me to eventually pass down the inheritance to my kids. More "inter generational" in nature. Long, long term buy & hold. All the more reason to limit the tax drag. Eventuall...
by avalpert
Tue Sep 19, 2017 3:35 pm
Forum: Personal Finance (Not Investing)
Topic: New BOA Premium Rewards Card
Replies: 29
Views: 1620

Re: New BOA Premium Rewards Card

I misunderstood the original post. Those are two different cards. The OP assumes somebody has $100k sitting at BOA. I don't and likely never will. I do keep over $25k. Why not? Move an IRA over to Merrill Edge transfer in kind and you get their new account bonus and higher cashback on your purchases.
by avalpert
Tue Sep 19, 2017 2:26 pm
Forum: Investing - Theory, News & General
Topic: Larry Swedroe: Vanguard Debunks Dividend Myth
Replies: 113
Views: 10849

Re: Larry Swedroe: Vanguard Debunks Dividend Myth

My mistake on the taxation but you do not know which will perform better the next 20 years because of the last few. Your right, I don't. But I do know that SCHD has no meaningful factor exposure that would increase expected returns and the risk associated with reducing diversification isn't expecte...
by avalpert
Tue Sep 19, 2017 2:03 pm
Forum: Investing - Theory, News & General
Topic: Larry Swedroe: Vanguard Debunks Dividend Myth
Replies: 113
Views: 10849

Re: Larry Swedroe: Vanguard Debunks Dividend Myth

Just to make a point,I will use SCHD,an ETF of 100 high quality dividend paying companies with an expense ratio I believe of .07. If I wanted to get about $500 a month income from my equities,I could purchase $200K and simply spend the dividends,all qualified,and never touch the principle for my re...
by avalpert
Tue Sep 19, 2017 1:56 pm
Forum: Investing - Theory, News & General
Topic: What is the main purpose of rebalancing?
Replies: 56
Views: 4026

Re: What is the main purpose of rebalancing?

The stock market goes up two years out of three, and over the past 90 years or so the "random walk" has generally been in a not-so-random up-direction, That's not what a random walk means - random walks can have upward biases. But yes, most rebalancing is selling an asset that has been going up to ...
by avalpert
Tue Sep 19, 2017 10:31 am
Forum: Personal Finance (Not Investing)
Topic: New BOA Premium Rewards Card
Replies: 29
Views: 1620

Re: New BOA Premium Rewards Card

I've been waiting for this news for a while after seeing the initial WSJ article. It was finally revealed today. The card seems weak. https://www.bankofamerica.com/credit-cards/products/premium-rewards-credit-card/ http://www.mymoneyblog.com/bank-of-america-bofa-premium-rewards-card-review.html htt...
by avalpert
Tue Sep 19, 2017 10:23 am
Forum: Personal Finance (Not Investing)
Topic: Donor Advised Fund: Am I thinking about this correctly?
Replies: 31
Views: 2033

Re: Donor Advised Fund: Am I thinking about this correctly?

What is the difference between your marginal rate this year and your marginal rate most years? Just because the absolute tax amount is higher this year, it may not save you more to pull-forward future donations if the marginal rates aren't all that different. Keep in mind that by investing the money...
by avalpert
Tue Sep 19, 2017 10:11 am
Forum: Investing - Theory, News & General
Topic: Larry Swedroe: Vanguard Debunks Dividend Myth
Replies: 113
Views: 10849

Re: Larry Swedroe: Vanguard Debunks Dividend Myth

Not sure I believe that holding on to your dividend funds would have prevented any of that - they dropped at pretty much the same pace as the rest of the market after all. But is that true for the dividends themselves? For someone living off of their stock market returns, does not the degree to whi...
by avalpert
Mon Sep 18, 2017 9:32 pm
Forum: Investing - Theory, News & General
Topic: Larry Swedroe: Vanguard Debunks Dividend Myth
Replies: 113
Views: 10849

Re: Larry Swedroe: Vanguard Debunks Dividend Myth

I'm not talking about retirement contributions or building funds for later. The goal is to create a monopoly board. Keep buying more houses while slowly taking in more rent money. Building cash income that you can freely use now. Current free cash flow while building principal. And I'm telling you ...
by avalpert
Mon Sep 18, 2017 9:07 pm
Forum: Investing - Theory, News & General
Topic: Larry Swedroe: Vanguard Debunks Dividend Myth
Replies: 113
Views: 10849

Re: Larry Swedroe: Vanguard Debunks Dividend Myth

There is one possible reason that I see to go with a dividend strategy vs just buying a broad market index fund. With the current tax code if you are within or below the 15% tax bracket dividends are tax free. I was trying to think of scenarios where it would be realistic but I'm hard pressed to fi...
by avalpert
Mon Sep 18, 2017 8:45 pm
Forum: Investing - Theory, News & General
Topic: Larry Swedroe: Vanguard Debunks Dividend Myth
Replies: 113
Views: 10849

Re: Larry Swedroe: Vanguard Debunks Dividend Myth

You're avoiding the question. Say I want to grow to $1,000 per month (or whatever) out of my portfolio. What are the mechanics of accomplishing that in an orderly fashion? Both transactions in and out. I didn't avoid the question - I answered it directly. You sell shares. If you want $1,000 per mon...
by avalpert
Mon Sep 18, 2017 7:41 pm
Forum: Investing - Theory, News & General
Topic: Larry Swedroe: Vanguard Debunks Dividend Myth
Replies: 113
Views: 10849

Re: Larry Swedroe: Vanguard Debunks Dividend Myth

Let's say your strategy is current income replacement/boosting rather than future savings, i.e. you want to take increasing dividend payments starting now while building/not removing the principle. How do you handle the non-dividend stocks? That's the mindset we are trying to avoid - taking 'income...
by avalpert
Mon Sep 18, 2017 7:14 pm
Forum: Personal Consumer Issues
Topic: Memory Foam Mattress Recomendations
Replies: 36
Views: 2749

Re: Memory Foam Mattress Recomendations

We have the Nest Love mattress (now the Love & Sleep mattress) and it is great for us - when I researched it for our desired attributes it offered the best value. But I think any of those mid-tier mailorder mattresses (Brookly Bedding, Casper, Nest etc.) would be good as long as you can match your d...
by avalpert
Mon Sep 18, 2017 6:49 pm
Forum: Personal Finance (Not Investing)
Topic: Calling out the not so rich bogleheads
Replies: 191
Views: 19875

Re: Calling out the not so rich bogleheads

He didn't initially say it was the percentile for his age - so no, I wasn't off by an order of magnitude. We can agree to disagree. I understood, but if you want to be pedantic, that's fine too. If you call reading what is written being pedantic so be it - I don't think percentile of net worth at a...
by avalpert
Mon Sep 18, 2017 6:47 pm
Forum: Personal Finance (Not Investing)
Topic: Calling out the not so rich bogleheads
Replies: 191
Views: 19875

Re: Calling out the not so rich bogleheads

This has the effect of scaring away and/or creating resentment in a lot of people who are not close to being millionaires or even just plain wealthy with a healthy emergency cushion, say around 100K-200K saved @ age 35 or 40 . You can't get wrapped up in a number. Think about it like this (assuming...
by avalpert
Mon Sep 18, 2017 6:36 pm
Forum: Personal Finance (Not Investing)
Topic: Calling out the not so rich bogleheads
Replies: 191
Views: 19875

Re: Calling out the not so rich bogleheads

The vast majority of Americans do not LBYM and are not Bogleheads. Good thing, too, or corporate profits wouldn't be so high. I'm 25, never had a real job due to being in school, never made more than median American wage, and have a net worth in the 93-percentile (according to survey of consumer fi...
by avalpert
Mon Sep 18, 2017 6:22 pm
Forum: Personal Finance (Not Investing)
Topic: Calling out the not so rich bogleheads
Replies: 191
Views: 19875

Re: Calling out the not so rich bogleheads

The vast majority of Americans do not LBYM and are not Bogleheads. Good thing, too, or corporate profits wouldn't be so high. I'm 25, never had a real job due to being in school, never made more than median American wage, and have a net worth in the 93-percentile (according to survey of consumer fi...
by avalpert
Mon Sep 18, 2017 5:36 pm
Forum: Investing - Theory, News & General
Topic: Larry Swedroe: Vanguard Debunks Dividend Myth
Replies: 113
Views: 10849

Re: Larry Swedroe: Vanguard Debunks Dividend Myth

Bond funds are different, just as bonds are different - it's important not to conflate interest and dividends as is often done. Whether to withdraw or reinvest the interest is simply a matter of your cash needs. The NAV does change when income is distributed - it drops by an equal amount. Can you e...
by avalpert
Mon Sep 18, 2017 4:27 pm
Forum: Investing - Theory, News & General
Topic: Larry Swedroe: Vanguard Debunks Dividend Myth
Replies: 113
Views: 10849

Re: Larry Swedroe: Vanguard Debunks Dividend Myth

Let's say your strategy is current income replacement/boosting rather than future savings, i.e. you want to take increasing dividend payments starting now while building/not removing the principle. How do you handle the non-dividend stocks? That's the mindset we are trying to avoid - taking 'income...
by avalpert
Mon Sep 18, 2017 4:24 pm
Forum: Investing - Theory, News & General
Topic: Larry Swedroe: Vanguard Debunks Dividend Myth
Replies: 113
Views: 10849

Re: Larry Swedroe: Vanguard Debunks Dividend Myth

Let's say your strategy is current income replacement/boosting rather than future savings, i.e. you want to take increasing dividend payments starting now while building/not removing the principle. How do you handle the non-dividend stocks? That's the mindset we are trying to avoid - taking 'income...
by avalpert
Mon Sep 18, 2017 4:17 pm
Forum: Investing - Theory, News & General
Topic: Larry Swedroe: Vanguard Debunks Dividend Myth
Replies: 113
Views: 10849

Re: Larry Swedroe: Vanguard Debunks Dividend Myth

Let's say your strategy is current income replacement/boosting rather than future savings, i.e. you want to take increasing dividend payments starting now while building/not removing the principle. How do you handle the non-dividend stocks? That's the mindset we are trying to avoid - taking 'income...
by avalpert
Mon Sep 18, 2017 3:57 pm
Forum: Investing - Theory, News & General
Topic: Larry Swedroe: Vanguard Debunks Dividend Myth
Replies: 113
Views: 10849

Re: Larry Swedroe: Vanguard Debunks Dividend Myth

Should investors avoid funds that invest in the 40% of domestic stocks that pay dividends and the 60% of international stocks that pay dividends? This would be a strategy pursuing capital gains and tax efficiency. DMW I think it is easier to defend (at least in taxable accounts) picking funds that ...
by avalpert
Mon Sep 18, 2017 3:16 pm
Forum: Investing - Help with Personal Investments
Topic: Making my own Total US stock market fund.
Replies: 20
Views: 1695

Re: Making my own Total US stock market fund.

What's interesting about that mix is that it leaves a hole in midcap coverage - everyone's forgotten step-child. The factor exposure is very close to Vanguard's total market fund (though not quite as close as the 80/10/10 mix) but the unloved midcaps remain unloved. Three points. First, small-cap a...
by avalpert
Mon Sep 18, 2017 3:04 pm
Forum: Personal Finance (Not Investing)
Topic: Save/invest and buy house with cash - yes/no?
Replies: 16
Views: 1077

Re: Save/invest and buy house with cash - yes/no?

Just toying with this idea this morning... Has anyone on this board ever done this or considered doing this? Instead of getting a mortgage on a house (first home), continue to rent, save, invest, and accumulate enough cash to pay for a house in cash. Or at least have the option of using 100% cash f...
by avalpert
Mon Sep 18, 2017 2:57 pm
Forum: Investing - Theory, News & General
Topic: Larry Swedroe: Vanguard Debunks Dividend Myth
Replies: 113
Views: 10849

Re: Larry Swedroe: Vanguard Debunks Dividend Myth

Their are 4 funds that are very supported by investors. 1). Wellington 2). Wellesley 3). High Dividend Yield Index 4). Dividend Appreciation Index These 4 funds are all "Income Funds" that have $Billions & $Billions invested in them. And that is just in Vanguard. Not counting ETF's or other Mutual ...
by avalpert
Mon Sep 18, 2017 1:50 pm
Forum: Investing - Theory, News & General
Topic: Larry Swedroe: Vanguard Debunks Dividend Myth
Replies: 113
Views: 10849

Re: Larry Swedroe: Vanguard Debunks Dividend Myth

I' am not surprised that Larry Swedroe thinks this way. As far as diversification: The High Dividend Yield Index Fund has 406 stocks. The Dividend Appreciation Index Fund has 185 stocks. That is 591 of the best companies in the USA markets that pay dividends. Actually, no. My quick look shows there...
by avalpert
Mon Sep 18, 2017 1:20 pm
Forum: Personal Finance (Not Investing)
Topic: Where to park $200K cash?
Replies: 27
Views: 3507

Re: Where to park $200K cash?

What are the goals for the money? Retirement, house, kids college, vegas trip? What timeline, and what other investments do you already have? All tax advantage accounts are fully invested I have no other investments. I dont need the money short or long term If you don't need it it doesn't matter wh...