Search found 283 matches

by ruud
Mon May 25, 2020 7:59 pm
Forum: Personal Investments
Topic: Should all international go in Roth?
Replies: 7
Views: 500

Re: Should all international go in Roth?

Last time I did the calculation for my particular tax situation, the higher dividend yield and lower QDI ratio was not offset by the foreign tax credit, so "international must go in taxable because of the foreign tax credit" definitely does not apply universally. Of course, YMMV.
by ruud
Wed May 20, 2020 8:12 pm
Forum: Personal Investments
Topic: Suggested Portfolio from Vanguard PAS
Replies: 16
Views: 895

Re: Suggested Portfolio from Vanguard PAS

For what it's worth, all Vanguard's "all in one" funds (LifeStrategy, Target Retirement) use a 60/40 domestic/international ratio.
by ruud
Wed May 20, 2020 11:51 am
Forum: Investing - Theory, News & General
Topic: Vanguard brokerage account transition
Replies: 212
Views: 20881

Re: Vanguard brokerage account transition

anakinskywalker wrote:
Wed May 20, 2020 11:46 am
Because of the uncertainty over the future of the Vanguard MF accounts, I've been forced to decide to stop adding new money into Vanguard.

I'm not comfortable holding assets over SIPC insurance limits in a brokerage account.
So what is your alternative?
by ruud
Sat May 16, 2020 11:03 am
Forum: Investing - Theory, News & General
Topic: What's the point of TLH when you already have booked losses?
Replies: 35
Views: 2076

Re: What's the point of TLH when you already have booked losses?

There has been talk about increasing the $3,000 figure since it was set in like 1978. So that might be something to consider if the next 30 years, they might increase the amount and possibly index it to inflation. $3,000 in 1978 is like $12,000 today. So maybe those losses could be used "quicker" d...
by ruud
Fri May 15, 2020 2:11 pm
Forum: Investing - Theory, News & General
Topic: Vanguard Mutual Fund Platform EOL
Replies: 245
Views: 8557

Re: Vanguard Mutual Fund Platform EOL

I'm going to expose my ignorance on this topic. My DW and I are still on the OG platform. In it, we have: A joint taxable brokerage (all ETF's) A brokerage account is the new platform that Vanguard wants everyone to transition to. You're already on it (at least for this account). What you call "OG ...
by ruud
Fri May 15, 2020 10:39 am
Forum: Personal Investments
Topic: What NOW!! [Portfolio help]
Replies: 38
Views: 2263

Re: What NOW!! [Portfolio help]

minimalistmarc wrote:
Fri May 15, 2020 10:09 am
Vanguard life strategy 30:70. Done.
There is no single LifeStrategy fund with a 30/70 allocation.
LifeStrategy Conservative Growth is 40/60.
LifeStrategy Income is 20/80.

However, Target Retirement Income is (fixed) 30/70.
by ruud
Fri May 15, 2020 9:22 am
Forum: Personal Investments
Topic: Why hold these funds - EM vs Intl - VWO vs VXUS
Replies: 16
Views: 792

Re: Why hold these funds - EM vs Intl - VWO vs VXUS

ps56k wrote:
Thu May 14, 2020 10:19 pm
I have held both of these funds for awhile - VWO for EM and VXUS for international.
VXUS already contains emerging markets (at the market cap weight of approximately 23%). So holding both VXUS and VWO results in overweighting emerging markets.
by ruud
Thu May 14, 2020 8:37 pm
Forum: Personal Investments
Topic: Option Trading
Replies: 11
Views: 914

Re: Option Trading

Griswold wrote:
Wed May 13, 2020 8:46 pm
Buy low sell a little higher.
Oh, I thought it was buy high, sell low :oops: So, that's why I'm not making money.
by ruud
Thu May 14, 2020 7:58 pm
Forum: Personal Investments
Topic: Capital gains tax
Replies: 5
Views: 406

Re: Capital gains tax

It's my understanding that withholding is considered to be spread evenly throughout the year, so if you can adjust your withholding in the remainder of the year to cover the expected amount of taxes owed, it would be fine.
by ruud
Thu May 14, 2020 7:26 pm
Forum: Personal Investments
Topic: All in one vs Separate fund
Replies: 59
Views: 3177

Re: All in one vs Separate fund

Thank you for all your input. I have decided to do ETFs to mimic the vanguard mod growth fund lifestrategy and split up the domestic bond portion into VTEB (tax exempt) and BND. So it will be: VTI 35.8% (total stock market) BND 14.3% (total bond market) + VTEB 14% (tax exempt) VXUS 23.9 % (total in...
by ruud
Wed May 13, 2020 7:20 pm
Forum: Personal Investments
Topic: Did I Make A Mistake? Tax Loss Harvesting
Replies: 14
Views: 996

Re: Did I Make A Mistake? Tax Loss Harvesting

I live in California and the property is also in California, so I think that my capital gains tax rate is 15% Federal plus 13.3% State, for a total of 28.3%. Unrelated to your TLH question, but I'm not sure how this could be. A CA tax of 13.3% implies your income is over $1M, but at that point, you...
by ruud
Wed May 13, 2020 6:53 pm
Forum: Investing - Theory, News & General
Topic: Why is total market weighted index best?
Replies: 61
Views: 4276

Re: Why is total market weighted index best?

This isn't a theoretical answer - just a personal mental exercise I've done. I may be overlooking something too. :-) Suppose you own some amount of Alphabet stock as part of your overall allocation. Suppose Alphabet suddenly decides to split into its current ~15 or so subsidiaries (Google, Fiber, L...
by ruud
Tue May 12, 2020 9:58 pm
Forum: Investing - Theory, News & General
Topic: International market recovery
Replies: 146
Views: 9369

Re: International market recovery

hdas wrote:
Tue May 12, 2020 8:49 pm
Is this chart Portfolio Visualizer......where is that feature?.Thanks. H
It's in the Fund Performance tool.
by ruud
Sun May 10, 2020 9:18 pm
Forum: Personal Investments
Topic: Bond fund yields
Replies: 12
Views: 1254

Re: Bond fund yields

If you bought a 5 year bond when yields were 2.5% and yields went down to 1.5% the price of that bond would go up by approximately 5%. So its coupon payment is now slightly less than 2.5% but as it approaches maturity its value will approach par. In the end that evens out to about a 1.5% return rela...
by ruud
Sun May 10, 2020 10:48 am
Forum: Investing - Theory, News & General
Topic: Vanguard Technology Fund
Replies: 82
Views: 3404

Re: Vanguard Technology Fund

midareff wrote:
Sun May 10, 2020 10:43 am
I would own the Vanguard Technology Fund in my IRA if it didn't have a $100K minimum.
You can buy the ETF version VGT.
by ruud
Sat May 09, 2020 4:11 pm
Forum: Personal Investments
Topic: Should I change my "aggressive" 401k to a 2 fund investment?
Replies: 20
Views: 1190

Re: Should I change my "aggressive" 401k to a 2 fund investment?

passive101 wrote:
Sat May 09, 2020 3:52 pm
but I don't see a bond option in my 401k.
PIMCO Moderate Duration appears to be a bond fund.
by ruud
Sat May 09, 2020 10:32 am
Forum: Personal Investments
Topic: Bond Index vs Bond Managed Fund
Replies: 13
Views: 1211

Re: Bond Index vs Bond Managed Fund

grabiner wrote:
Sat May 09, 2020 9:50 am
Vanguard Tax-Exempt Bond Index has the same expense ratio as a mutual fund as Vanguard's actively-managed muni funds, with a purchase fee; it costs three basis points less if you buy it as an ETF.
The purchase fee on VTEAX was eliminated earlier this year.
by ruud
Fri May 08, 2020 7:20 pm
Forum: Personal Investments
Topic: VDIGX vs VFIAX
Replies: 9
Views: 489

Re: VDIGX vs VFIAX

Another alternative may be VDADX, Dividend Appreciation Index Fund.
by ruud
Fri May 08, 2020 4:15 pm
Forum: Personal Investments
Topic: Thoughts about VDADX in Roth IRA?
Replies: 31
Views: 1417

Re: Thoughts about VDADX in Roth IRA?

retired@50 wrote:
Fri May 08, 2020 2:41 pm
The trouble with putting bonds in taxable now is that the low yield may go away in the future, then you're stuck trying to move them into a tax-deferred account. :shock:
When yields go up, bond prices go down, so it would actually be a TLH opportunity to do so.
by ruud
Fri May 08, 2020 11:21 am
Forum: Investing - Theory, News & General
Topic: Missing EM in VXUS?
Replies: 11
Views: 1166

Re: Missing EM in VXUS?

If I remember correctly, Canada was underrepresented in VXUS. As much as I like Canadians and visiting Canada, I didn't worry about it. Not suggesting that Canada is an emerging economy, just making an observation. That changed 10 (ish) years ago when Total International switched from a fund-of-fun...
by ruud
Thu May 07, 2020 7:25 pm
Forum: Personal Investments
Topic: Thoughts about VDADX in Roth IRA?
Replies: 31
Views: 1417

Re: Thoughts about VDADX in Roth IRA?

dru808 wrote:
Thu May 07, 2020 7:14 pm
Vanguard dividend appreciation is not a high dividend fund. It will likely never be a high dividend fund.
In fact, it is even slightly more tax efficient than VTSAX, last I checked (Ever-so-slightly lower yield and 100% QDI).
by ruud
Thu May 07, 2020 2:26 pm
Forum: Investing - Theory, News & General
Topic: Vanguard Mutual Funds Outperform ETF
Replies: 49
Views: 2829

Re: Vanguard Mutual Funds Outperform ETF

Yes, on the night of the distribution the share value of the fund will go down some, and the amount the distribution will purchase more shrs of fund for you if reinvestment is the option. Shr value will go down, shrs held will go up – the balance will ALSO go up! Not the whole 6% however, but a sig...
by ruud
Thu May 07, 2020 10:29 am
Forum: Personal Investments
Topic: Money Market Fund Dividends
Replies: 5
Views: 447

Re: Money Market Fund Dividends

Money market dividends are declared daily and paid monthly. Using your example, if the monthly dividend is $0.00193, a typical declared daily dividend could be $0.00193/30 = $0.00006433 per share (it varies day-to-day). All the declared daily dividends are added up and paid out once a month. So wha...
by ruud
Wed May 06, 2020 9:02 pm
Forum: Investing - Theory, News & General
Topic: Vanguard Mutual Funds Outperform ETF
Replies: 49
Views: 2829

Re: Vanguard Mutual Funds Outperform ETF

kabob wrote:
Wed May 06, 2020 8:52 pm
BUT, some funds get Gifts from Above in Cap Distributions and the ETF's don't!
Capital gains distributions are a nuisance, not a gift.
by ruud
Wed May 06, 2020 2:47 pm
Forum: Investing - Theory, News & General
Topic: Target Date Question
Replies: 6
Views: 434

Re: Target Date Question

firebirdparts wrote:
Wed May 06, 2020 2:42 pm
i don't think they'll give you a choice of staying in 2020 after 2020.
Eventually the fund will be merged into Target Retirement Income, but given that Target Retirement 2015 is still available, it'll be a while.
by ruud
Tue May 05, 2020 9:47 am
Forum: Investing - Theory, News & General
Topic: VWIAX/VFIJX versus Total Stock and Bond Index
Replies: 14
Views: 898

Re: VWIAX/VFIJX versus Total Stock and Bond Index

what are your feelings on having VFIJX or Vanguard's Total Bond Index Fund? When bond yields fall, Total Bond gets a capital gain. And in theory, a mortgage bond fund would do that as well - except that's when people refinance their mortgages, and pull the high yield out from under you. A mortgage ...
by ruud
Sat May 02, 2020 12:51 pm
Forum: Investing - Theory, News & General
Topic: Your Favorite Vanguard Fund
Replies: 93
Views: 14556

Re: Your Favorite Vanguard Fund

It would be nice if I had an individual account with shares of VSMPX... especially if I had the $100,000,000 minimum purchase! ("Vanguard Total Stock Market Index Fund Institutional Plus Shares", 0.02% expense ratio) https://investor.vanguard.com/mutual-funds/profile/VSMPX I wonder if you can actua...
by ruud
Tue Apr 28, 2020 2:24 pm
Forum: Investing - Theory, News & General
Topic: ER cut for TSM ETF VTI - false info in banner, now removed!
Replies: 13
Views: 936

Re: ER cut for TSM ETF VTI - false info in banner, now removed!

Broken Man 1999 wrote:
Tue Apr 28, 2020 10:06 am
I was on hold a few minutes, the banners are gone, as well as my .01% savings! :( Oh well, easy come, easy go!
Huh. The ER is still 0.03% whether or not they displayed the banner. You are not any worse off than you were before your phone call.
by ruud
Sat Apr 25, 2020 8:22 pm
Forum: Personal Investments
Topic: Should I abandon VFIUX in favor of VSIGX (Vanguard Intermediate-Term Treasury funds)?
Replies: 7
Views: 855

Re: Should I abandon VFIUX in favor of VSIGX (Vanguard Intermediate-Term Treasury funds)?

According to PV, $10,000 invested in each fund at the inception of VSIGX (December 2009), would have resulted in a whopping $26 difference over the more than ten years since then, so for all intents and purposes the funds are identical. It's just that one of them is historically an actively managed ...
by ruud
Thu Apr 23, 2020 7:41 pm
Forum: Personal Investments
Topic: Leaning towards EE Bond Purchase...
Replies: 36
Views: 2052

Re: Leaning towards EE Bond Purchase...

retired@50 wrote:
Thu Apr 23, 2020 7:39 pm
Given that the current rate of interest is .10%, I think I'd keep looking.
If you hold the bond for 20 years, it will double in value, equivalent to a 3.5% rate.
by ruud
Thu Apr 23, 2020 6:46 pm
Forum: Personal Investments
Topic: Highest yield on a safe 3 year investment of 25K
Replies: 12
Views: 1311

Re: Highest yield on a safe 3 year investment of 25K

Put $24,000 in a 3-year CD. As long as the CD has an interest rate of 1.4% or better, you will at least get your original $25,000 back.
Put the remaining $1,000 in something very speculative. An emerging markets small value ETF, bitcoin, oil futures (too soon?), 50% UPRO/50% TMF, whatever.
by ruud
Thu Apr 23, 2020 12:31 pm
Forum: Investing - Theory, News & General
Topic: First 20% of bonds in long-term Treasuries
Replies: 807
Views: 51627

Re: First 20% of bonds in long-term Treasuries

anon_investor wrote:
Thu Apr 23, 2020 12:21 pm
Do any long term TIPS mutual funds/ETFs exist?
LTPZ - PIMCO 15+ Year U.S. TIPS Index Exchange-Traded Fund
by ruud
Wed Apr 22, 2020 5:01 pm
Forum: Personal Investments
Topic: Active trading strategy using SPY
Replies: 21
Views: 737

Re: Active trading strategy using SPY

To let bogleheads know that there are some good active trading strategies. I am announcing to the public that I am not just a buy and hold investor. I may update this thread with performance results. Unless you publish your strategy or your trades in advance, performance results are meaningless sin...
by ruud
Tue Apr 21, 2020 6:55 pm
Forum: Personal Investments
Topic: Best S&P 500 ETF IVV vs VOO
Replies: 20
Views: 1474

Re: Best S&P 500 ETF IVV vs VOO

RTF wrote:
Tue Apr 21, 2020 6:32 pm
What are everyone’s thoughts on owning both vti and voo together 50/50?
That would be equal to holding 92% VOO and 8% VXF, for what it's worth.
by ruud
Mon Apr 20, 2020 9:34 am
Forum: Personal Investments
Topic: TLH Partner for Vanguard Dividend Growth Fund?
Replies: 5
Views: 243

Re: TLH Partner for Vanguard Dividend Growth Fund?

I personally wouldn’t want a dividend fund in taxable so consider this as an opportunity to correct that. You don’t necessarily have to change your AA either assuming you have a tax-efficient equity holding in an IRA (TSM for example); just buy that in taxable after selling div-growth, then swap in...
by ruud
Sun Apr 19, 2020 7:46 pm
Forum: Investing - Theory, News & General
Topic: Corp Bond ETF VCIT Maturity Dates
Replies: 27
Views: 974

Re: Corp Bond ETF VCIT Maturity Dates

Now you confused me again. I get the exact payment every six months and will continue to do so until maturity. How am I getting a 1 pct return? If you are saying if you bought the same bond today at the higher price you would get a 1 pct return, what does that have to do with my return ? Maybe I am...
by ruud
Sun Apr 19, 2020 11:14 am
Forum: Investing - Theory, News & General
Topic: Will indexes continue to perform well?
Replies: 35
Views: 1727

Re: Will indexes continue to perform well?

Index funds are giving you the returns of the market. The market is basically every actively managed fund and every individual investor. So before fees index funds will outperform 50% of all actively managed funds. This is a mathematical necessity. I don't think this is mathematically necessary. Th...
by ruud
Fri Apr 17, 2020 11:24 am
Forum: Investing - Theory, News & General
Topic: Press Release 4/16/20– Vanguard Closes Treasury Money Market Fund to New Investors
Replies: 46
Views: 4089

Re: Press Release 4/16/20– Vanguard Closes Treasury Money Market Fund to New Investors

Leesbro63 wrote:
Fri Apr 17, 2020 10:25 am
What's a "new investor"? Someone who has no money in that fund to begin with or someone who has no money at Vanguard to begin with?
New to the fund.
by ruud
Wed Apr 15, 2020 7:04 pm
Forum: Investing - Theory, News & General
Topic: Future 60/40 Portfolio has a 43% Chance of Failing with 4% Withdrawal Rate
Replies: 622
Views: 31435

Re: Future 60/40 Portfolio has a 43% Chance of Failing with 4% Withdrawal Rate

Retirees or near-retirees who are expecting to have withdrawal rates of 2.5% or lower will probably be okay even under the worst of possible future paths. But anyone counting on a withdrawal rate much higher than that should, in my view, be making some serious plans for mitigating sequence of retur...
by ruud
Wed Apr 15, 2020 1:56 pm
Forum: Personal Investments
Topic: Avoid ST Cap Gains by going from VTSAX to VTI?
Replies: 10
Views: 424

Re: Avoid ST Cap Gains by going from VTSAX to VTI?

You can re-buy VTSAX anytime you want to despite what Vanguard told you [if you did NOT sell all your VTSAX shares and still hold some shares in the account you wish to purchase shares for]. Vanguard's frequent trading policy makes you wait 30 days to buy back into a fund after you sell out of it, ...
by ruud
Tue Apr 14, 2020 2:58 pm
Forum: Investing - Theory, News & General
Topic: What does it mean to stick to your allocation? - Part 1
Replies: 34
Views: 947

Re: What does it mean to stick to your allocation? - Part 2

It all depends on whether B's rebalance event triggered and they purposely ignored it.
by ruud
Tue Apr 14, 2020 2:47 pm
Forum: Personal Investments
Topic: Selling Large Cap (VV) for TSM (VTI)
Replies: 8
Views: 457

Re: Selling Large Cap (VV) for TSM (VTI)

Or you could buy enough VB (Small Cap ETF) so that you have a 87:13 ratio of VV:VB, which matches the composition of VTI.
But if the goal is simplification, this probably doesn't help :P
by ruud
Tue Apr 14, 2020 9:29 am
Forum: Personal Investments
Topic: VGT vs VTI
Replies: 36
Views: 2375

Re: VGT vs VTI

Elysium wrote:
Tue Apr 14, 2020 8:49 am
Why was $1 invested in MSFT in the year 2000 at 0.60 cents at the end of 2009?
Did MSFT really lose 99.4% of its value? Or did you mean $0.60 instead of less than a penny?
by ruud
Mon Apr 13, 2020 10:46 am
Forum: Personal Investments
Topic: Lazy Portfolio
Replies: 10
Views: 720

Re: Lazy Portfolio

What is the difference btwn dividend growth strategy vs high yield strategy. My understanding was that the companies in VIG have historically had progressively growing dividends albeit modest. And from what I was reading, the companies with high dividends like in VYM may more likely slash their div...
by ruud
Mon Apr 13, 2020 10:42 am
Forum: Personal Investments
Topic: Lazy Portfolio
Replies: 10
Views: 720

Re: Lazy Portfolio

Thank you for your response. More fool-proof the better right?? What are your thoughts on VTI vs VTSAX (TDA only offers SPTM as their VTSAX equivalent). I suppose VTI would be give me good global exposure as well as US exposure. VTI and VTSAX are the exact same fund, just in two different offerings...
by ruud
Mon Apr 13, 2020 9:35 am
Forum: Personal Investments
Topic: Lazy Portfolio
Replies: 10
Views: 720

Re: Lazy Portfolio

VIG (for the dividends) VIG (Vanguard Dividend Appreciation Index ETF) uses, as the name suggests, a dividend growth strategy, not a high dividend yield strategy. The dividend yield on VIG is 2.2%, comparable to VTI (Total Stock Market) and VOO (S&P 500 Index). If you want high dividend yield inste...
by ruud
Fri Apr 10, 2020 8:19 pm
Forum: Personal Investments
Topic: 2 Fund vs 3 Fund For Remaining Retirement Portfolio
Replies: 4
Views: 471

Re: 2 Fund vs 3 Fund For Remaining Retirement Portfolio

arivera wrote:
Fri Apr 10, 2020 8:09 pm
Apologies! I did mean VNX.
VNX (?) or VNQ (Vanguard REIT index fund)?
by ruud
Fri Apr 10, 2020 7:25 pm
Forum: Investing - Theory, News & General
Topic: Where to Find the Full, Official S&P 500 List?
Replies: 19
Views: 698

Re: Where to Find the Full, Official S&P 500 List?

Slowtraveler wrote:
Fri Apr 10, 2020 5:47 pm
a direct, equal weighted index with 0 turnover to compare to the index.
An equal weighted index can't have 0 turnover.

The only way you can have 0 turnover is by cap weighting.
by ruud
Thu Apr 09, 2020 8:31 pm
Forum: Personal Investments
Topic: TLH Suggestions for VMNVX ?
Replies: 8
Views: 419

Re: TLH Suggestions for VMNVX ?

Thanks for the info, folks Acknowledged - about spelling out the Fund name... newbie error ! Other than the ACWV, haven't seen much else after digging around; certainly nothing inside the Vanguard stable (even with combinations) Not exactly a "minimum volatility" strategy but the dividend appreciat...