Search found 411 matches

by ruud
Tue May 11, 2021 9:57 pm
Forum: Investing - Theory, News & General
Topic: Jack Bogle - Two Fund Portfolio
Replies: 1799
Views: 176313

Re: Jack Bogle - Two Fund Portfolio

Not a paper saying not needed. Paper showing average of 20% and older investors being more US based. I believe you may be referring to How America Invests 2020 , the international allocation by age is on page 24, figure 15, panel C. Reformatted: <25 17% 25-34 21% 35-44 21% 45-54 19% 55-64 18% 65-74...
by ruud
Tue May 11, 2021 4:56 pm
Forum: Personal Investments
Topic: Selling RSU
Replies: 62
Views: 2419

Re: Selling RSU

If your company would provide an option where instead of receiving RSUs as shares, you receive a cash bonus equal to the value of the shares at the date of vesting (minus withholding), would you choose it? Why or why not?
by ruud
Tue May 11, 2021 10:20 am
Forum: Personal Investments
Topic: Vanguard Charitable - trade timing
Replies: 8
Views: 419

Re: Vanguard Charitable - trade timing

-- does anybody know how long it typically takes for a DAF trade to execute going from Vanguard to Vanguard charitable? If I recall correctly from our own contribution, I believe the sequence of events is as follows: day 0: make request to transfer assets to Vanguard Charitable; assuming market is ...
by ruud
Mon May 10, 2021 9:26 pm
Forum: Personal Investments
Topic: Backdoor Roth IRA for 2020
Replies: 6
Views: 427

Re: Backdoor Roth IRA for 2020

Contribution and conversion are 2 separate distinct transactions.

A contribution can be made for a prior year.

A conversion always applies to the year it happens in. You can convert any amount, regardless of what year it was contributed.
by ruud
Sun May 09, 2021 11:02 am
Forum: Investing - Theory, News & General
Topic: Jack Bogle - Two Fund Portfolio
Replies: 1799
Views: 176313

Re: Jack Bogle - Two Fund Portfolio

abuss368 wrote: Sat May 08, 2021 8:14 pm I always tell folks “buy as much Total Stock as possible until it hurts. Then find a way to buy even more”.
Whatever happened to "ability, need, willingness" to take risk? Maybe some folks don't need so much stocks in their portfolio?
by ruud
Sat May 08, 2021 2:16 pm
Forum: Investing - Theory, News & General
Topic: Do I have to read the prospectus before buying an index fund?
Replies: 101
Views: 7869

Re: Do I have to read the prospectus before buying an index fund?

The separate legal entity (Vanguard STAR Funds in your example) is a special form of unincorporated association called a Delaware Startutory Trust. [...] I imagine that any restrictions on cross-subsidization come from the SEC rules, not the Delaware rules, and so are unlikely to be related to whet...
by ruud
Sat May 08, 2021 12:35 pm
Forum: Investing - Theory, News & General
Topic: What Ever Happened to "Your Age In Bonds"?
Replies: 108
Views: 8185

Re: What Ever Happened to "Your Age In Bonds"?

Are there more substantive reasons for the decline of "your age in bonds" or should we be revisiting this mantra? 120 - age is another mantra. Not really. We started with age-in-bonds which lasted seemingly forever, then flipped though 110-age, 120-age, and now we've arrived at "why ...
by ruud
Sat May 08, 2021 10:08 am
Forum: Investing - Theory, News & General
Topic: Do I have to read the prospectus before buying an index fund?
Replies: 101
Views: 7869

Re: Do I have to read the prospectus before buying an index fund?

Funds can't cross subsidize each other. They are 2 separate corporations Out of curiosity, are funds that are part of the same trust still considered separate? E.g. Vanguard Total Stock Market Fund and Vanguard 500 Index Fund are both part of the "Vanguard Index Funds Trust", for example....
by ruud
Fri May 07, 2021 8:33 pm
Forum: Investing - Theory, News & General
Topic: Do I have to read the prospectus before buying an index fund?
Replies: 101
Views: 7869

Re: Do I have to read the prospectus before buying an index fund?

Funds can't cross subsidize each other. They are 2 separate corporations Out of curiosity, are funds that are part of the same trust still considered separate? E.g. Vanguard Total Stock Market Fund and Vanguard 500 Index Fund are both part of the "Vanguard Index Funds Trust", for example.
by ruud
Fri May 07, 2021 8:28 pm
Forum: Personal Investments
Topic: Best short-term bond fund in a taxable account
Replies: 7
Views: 920

Re: Best short-term bond fund in a taxable account

I'm looking for small distributions or tax-advantaged distributions to avoid ordinary income tax, balanced against a reasonable return. What is your tax bracket? MFJ 24% Federal (near the bottom of the range) 4.95% State If you're OK with investment grade or corporate bond funds, VCSH (0.85% yield)...
by ruud
Fri May 07, 2021 8:04 pm
Forum: Personal Investments
Topic: Best short-term bond fund in a taxable account
Replies: 7
Views: 920

Re: Best short-term bond fund in a taxable account

Fran K wrote: Fri May 07, 2021 7:52 pm I'm looking for small distributions or tax-advantaged distributions to avoid ordinary income tax, balanced against a reasonable return.
What is your tax bracket?
by ruud
Thu May 06, 2021 9:16 pm
Forum: Personal Investments
Topic: Willing to share your Taxable Portfolio?
Replies: 185
Views: 18343

Re: Willing to share your Taxable Portfolio?

30% VTI
15% VEA
5% VWO
25% VGIT
25% VCADX
by ruud
Wed May 05, 2021 6:41 pm
Forum: Investing - Theory, News & General
Topic: The Eight Great Misconceptions About Bonds
Replies: 55
Views: 5810

Re: The Eight Great Misconceptions About Bonds

not ' lost ' it's didn't ' gain '. big difference. If you own a stock that went up from $50 to $100; then subsequently went down to $80, did your portfolio lose $20 of value? The argument being made in the article weaker than this. It's arguing that you own a stock whose price remained at $50, but ...
by ruud
Wed May 05, 2021 6:15 pm
Forum: Investing - Theory, News & General
Topic: The Eight Great Misconceptions About Bonds
Replies: 55
Views: 5810

Re: The Eight Great Misconceptions About Bonds

trinc wrote: Wed May 05, 2021 6:03 pm not ' lost ' it's didn't ' gain '. big difference.
If you own a stock that went up from $50 to $100; then subsequently went down to $80, did your portfolio lose $20 of value?
by ruud
Sun May 02, 2021 8:13 pm
Forum: Investing - Theory, News & General
Topic: Jack Bogle - Two Fund Portfolio
Replies: 1799
Views: 176313

Re: Jack Bogle - Two Fund Portfolio

abuss368 wrote: Sun May 02, 2021 1:44 pm If investors focus on owning the haystack then there is no need to add additional complexity with styles and sectors.
Then why restrict yourself to just U.S. hay instead of the global haystack?
by ruud
Sun May 02, 2021 2:51 pm
Forum: Investing - Theory, News & General
Topic: Why impossible for active to beat average?
Replies: 19
Views: 1467

Re: Why impossible for active to beat average?

Help me out on the math, please. It's said that the market is made up of active and passive investors, and if passive investors receive the weighted average performance of all stocks, then it would be impossible for active investors to collectively be above average. That makes sense superficially, ...
by ruud
Sun May 02, 2021 2:07 pm
Forum: Personal Investments
Topic: Puzzled about two Vanguard bond funds
Replies: 13
Views: 1172

Re: Puzzled about two Vanguard bond funds

investor4life wrote: Sun May 02, 2021 1:51 pm (1) On Vanguard's site, both funds show an inception date in 2001, yet the Morningstar graphs go way back before that for both funds.
That's likely when the Admiral share class was started; Morningstar might be backfilling with the Investor share class before then.
by ruud
Fri Apr 30, 2021 2:42 pm
Forum: Investing - Theory, News & General
Topic: Sequence of Returns Risk Scenario
Replies: 198
Views: 8795

Re: Sequence of Returns Risk Scenario

But your risk profile changes dramatically with the trigger of retirement withdrawals, which should be reflected in your asset allocation. It changes well before then. We're still a few years away from retirement, but with what we've saved by now, a 50% stock market decline would hurt a lot more th...
by ruud
Fri Apr 30, 2021 2:22 pm
Forum: Investing - Theory, News & General
Topic: Sequence of Returns Risk Scenario
Replies: 198
Views: 8795

Re: Sequence of Returns Risk Scenario

But your risk profile changes dramatically with the trigger of retirement withdrawals, which should be reflected in your asset allocation. It changes well before then. We're still a few years away from retirement, but with what we've saved by now, a 50% stock market decline would hurt a lot more th...
by ruud
Thu Apr 29, 2021 2:11 pm
Forum: Investing - Theory, News & General
Topic: index ETF vs Mutual Fund optimization for capital gain
Replies: 10
Views: 696

Re: index ETF vs Mutual Fund optimization for capital gain

ikvkikvk wrote: Thu Apr 29, 2021 1:38 pm So to generalize, would it correct to state "ETFs and usually more tax efficient than MF, except for Vanguard's MF"?
Almost. Not all Vanguard mutual funds have an ETF share class.
by ruud
Thu Apr 29, 2021 1:01 pm
Forum: Investing - Theory, News & General
Topic: index ETF vs Mutual Fund optimization for capital gain
Replies: 10
Views: 696

Re: index ETF vs Mutual Fund optimization for capital gain

ikvkikvk wrote: Thu Apr 29, 2021 11:32 am I always heard that ETFs are more tax efficient than Mutual Funds
This does not apply to ETFs and Mutual Funds at Vanguard that are share classes of the same fund (e.g. VOO and VFIAX), they are equally tax efficient. In a sense, the mutual fund gets to enjoy the tax advantages of the ETF.
by ruud
Wed Apr 28, 2021 4:06 pm
Forum: Investing - Theory, News & General
Topic: Total World Bond (BNDW) yielding 2.89%?
Replies: 3
Views: 869

Re: Total World Bond (BNDW) yielding 2.89%?

The only holdings of BNDW are BND and BNDX, which have a yield of 1.33% and 0.43%, respectively, so it seems impossible for BNDW to then have a yield of 2.89%. However, because BNDW and BND are not bonds, but funds, maybe that's confusing the yield computation? (Just speculating, using distribution ...
by ruud
Tue Apr 27, 2021 9:19 am
Forum: Investing - Theory, News & General
Topic: Find the Dividend: Can You Identify Where a Dividend Payment Affected Equity Price?
Replies: 98
Views: 6048

Re: Find the Dividend: Can You Identify Where a Dividend Payment Affected Equity Price?

So despite all the ranting on the subject, I don't see any evidence that paying a dividend harms stocks over the long term. I don't believe this is what is being claimed. What is being claimed (in my understanding) is that dividend payments impact stock prices , but since total return is composed o...
by ruud
Mon Apr 26, 2021 8:11 pm
Forum: Personal Investments
Topic: Treasury Fund in Taxable? Any better options?
Replies: 15
Views: 1956

Re: Treasury Fund in Taxable? Any better options?

Is a Treasury index fund such as VSIGX generally afforded the same State-level tax exemption enjoyed by other funds that hold Treasuries directly (i.e., Vanguard's VFITX or its Admiral Class counterpart, VFIUX -- both Intermediate Term Treasury funds). In fact, VSIGX holds more treasuries than VFIT...
by ruud
Mon Apr 26, 2021 11:12 am
Forum: Investing - Theory, News & General
Topic: Rebalancing from ETF to Mutual Fund
Replies: 2
Views: 291

Re: Rebalancing from ETF to Mutual Fund

After some more searching, I found the brokerage account transition PDF, which seems to imply this is officially supported. On page 10/11:
Processing time to buy Vanguard funds with proceeds from the sale of brokerage assets:
After the move: same day.
by ruud
Mon Apr 26, 2021 9:50 am
Forum: Personal Investments
Topic: TLH - Mutual Funds vs ETFs
Replies: 12
Views: 640

Re: TLH - Mutual Funds vs ETFs

LongTermLenny wrote: Mon Apr 26, 2021 9:35 am if they both have the same dividend yield but the mutual fund yield is treated differently from a tax standpoint.
To the best of my knowledge, there's no difference in tax treatment between distributions from ETFs or Mutual Funds.
by ruud
Mon Apr 26, 2021 9:38 am
Forum: Investing - Theory, News & General
Topic: Vanguard Factor ETFs 3 Year Birthday!
Replies: 18
Views: 2216

Re: Vanguard Factor ETFs 3 Year Birthday!

Vanguard has some half-hidden ETFs that duplicate styles like small-cap value, but track "name-brand" Russell and S&P indexes instead of the unfamiliar CRSP indexes. In addition to VBR, Vanguard Small-Cap Value ETF, with $45 billion AUM, they have VIOV, Vanguard S&P Small-Cap 600 ...
by ruud
Mon Apr 26, 2021 9:30 am
Forum: Personal Investments
Topic: Treasury Fund in Taxable? Any better options?
Replies: 15
Views: 1956

Re: Treasury Fund in Taxable? Any better options?

lobsterman2112 wrote: Mon Apr 26, 2021 9:02 am The downsides of VAIPX are the $50k initial investment amount [...]

Am I missing something?
There's an investor class as well, VIPSX, but this has a 0.20% expense ratio. Once your balance exceeds $50k, you can convert it to the VAIPX admiral class without incurring a taxable event, though.
by ruud
Mon Apr 26, 2021 9:26 am
Forum: Investing - Theory, News & General
Topic: Rebalancing from ETF to Mutual Fund
Replies: 2
Views: 291

Rebalancing from ETF to Mutual Fund

In a Vanguard Brokerage account, is it possible to sell some ETF shares and buy more of a Vanguard Mutual Fund with the sales proceeds the same day, or do you have to wait for the ETF sale to settle first?
by ruud
Sun Apr 25, 2021 11:11 am
Forum: Investing - Theory, News & General
Topic: I don’t understand why tax loss harvesting is that beneficial
Replies: 118
Views: 8979

Re: I don’t understand why tax loss harvesting is that beneficial

Carryover losses can offset any amount of gains, not limited to $3,000. Only if you have no gains, do they offset $3,000 of ordinary income. No, after you offset any gains, you get to offset 3K of ordinary income *in addition to* the cap gains as long as you are within the amount of losses. Whateve...
by ruud
Sun Apr 25, 2021 10:55 am
Forum: Investing - Theory, News & General
Topic: I don’t understand why tax loss harvesting is that beneficial
Replies: 118
Views: 8979

Re: I don’t understand why tax loss harvesting is that beneficial

Carryover losses can offset any amount of gains, not limited to $3,000. Only if you have no gains, do they offset $3,000 of ordinary income.
by ruud
Sat Apr 24, 2021 8:58 pm
Forum: Personal Investments
Topic: Treasury Fund in Taxable? Any better options?
Replies: 15
Views: 1956

Re: Treasury Fund in Taxable? Any better options?

We did the same last year.

The yield on VSIGX is about 0.9% (though the distribution yield is a bit higher at 1.1%). So you should expect approximately $5,000 of interest per year on a $500K balance at current interest rates. At 37% (+3.8% NIIT, presumably) that's about $2,000 in tax, ballpark.
by ruud
Sat Apr 24, 2021 8:52 pm
Forum: Personal Investments
Topic: Vanguard PrimeCap -- rules for adding to account?
Replies: 25
Views: 1451

Re: Vanguard PrimeCap -- rules for adding to account?

What's so special about PrimeCap?
by ruud
Sat Apr 24, 2021 3:49 pm
Forum: Investing - Theory, News & General
Topic: Find the Dividend: Can You Identify Where a Dividend Payment Affected Equity Price?
Replies: 98
Views: 6048

Re: Find the Dividend: Can You Identify Where a Dividend Payment Affected Equity Price?

If the price of a stock actually was determined in a precise way by the actual value of the company this argument would be more compelling. The market is efficient. Something that's being traded as a bundle of A+B on one day, but only A on the next day, will obviously drop in price by the exact val...
by ruud
Sat Apr 24, 2021 10:18 am
Forum: Investing - Theory, News & General
Topic: Find the Dividend: Can You Identify Where a Dividend Payment Affected Equity Price?
Replies: 98
Views: 6048

Re: Find the Dividend: Can You Identify Where a Dividend Payment Affected Equity Price?

Look at the share price of ICSH in 2019 and the ex-dividend dates will be obvious.
by ruud
Fri Apr 23, 2021 6:49 pm
Forum: Personal Finance (Not Investing)
Topic: anyone figured out TurboTax and 8606 nightmare?
Replies: 9
Views: 1434

Re: anyone figured out TurboTax and 8606 nightmare?

RJ2010 wrote: Fri Apr 23, 2021 6:37 pm when I entered 1099-R, TurboTax spills out from 8606 weirdly. Part I is totally blank. Part II has some numbers.
Sounds like you only did the 1099-R part in "Income", but not the IRA contribution part in "Deductions" (or whatever it's called).
by ruud
Thu Apr 22, 2021 9:39 am
Forum: Investing - Theory, News & General
Topic: Inaccurate valuations - Vanguard's "Outside Investments"
Replies: 18
Views: 1569

Re: Inaccurate valuations - Vanguard's "Outside Investments"

I use the same feature to keep track of the approximate balance in a non-Vanguard 401k. Since the 401k uses trusts, not funds, I approximate the value by picking the closest Vanguard fund. I recently changed the ticker symbol on a holding (just like you did), but in my case the change propagated cor...
by ruud
Mon Apr 19, 2021 10:48 am
Forum: Personal Investments
Topic: Backdoor Roth tax question
Replies: 8
Views: 628

Re: Backdoor Roth tax question

Just the 8606. (To clarify: Fidelity doesn't know whether the contribution is deductible or not, so they won't be able to tell whether you have to file a 8606)

For 2021, you'll get a 1099-R that documents the conversion.
by ruud
Mon Apr 19, 2021 10:43 am
Forum: Investing - Theory, News & General
Topic: Do simple index fund-only portfolios (e.g., 3-fund, 5-fund, etc.) work for the ultra wealthy (say, $20+ million)?
Replies: 100
Views: 12181

Re: Do simple index fund-only portfolios (e.g., 3-fund, 5-fund, etc.) work for the ultra wealthy (say, $20+ million)?

Do the institutional funds with really high minimums perform better than the admiral class of everyday funds such as VTSAX? As far as I can tell, the performance is identical, aside from the expense ratio difference. So Vanguard knocks 0.005% off of the expense ratio when you invest $5 million? See...
by ruud
Mon Apr 19, 2021 10:23 am
Forum: Personal Investments
Topic: Backdoor Roth tax question
Replies: 8
Views: 628

Re: Backdoor Roth tax question

The "backdoor Roth" is 2 separate transactions: A contribution to a traditional IRA A conversion from traditional IRA to Roth IRA Contributions can be made for a prior year, but conversions are always reported in the year in which they occur. So if in 2021, you made 2 contributions, one fo...
by ruud
Mon Apr 19, 2021 10:18 am
Forum: Investing - Theory, News & General
Topic: Do simple index fund-only portfolios (e.g., 3-fund, 5-fund, etc.) work for the ultra wealthy (say, $20+ million)?
Replies: 100
Views: 12181

Re: Do simple index fund-only portfolios (e.g., 3-fund, 5-fund, etc.) work for the ultra wealthy (say, $20+ million)?

What is the liquidity / transaction cost of VTI and VXUS such that a $20 million or $200 million portfolio no longer makes sense? $50 million 3-fund portfolio entirely in vti/vxus/bnd? I think the mutual fund forms of the Vanguard etfs have daily limits. Is there a wealth level at which a holding i...
by ruud
Mon Apr 19, 2021 9:21 am
Forum: Investing - Theory, News & General
Topic: Do simple index fund-only portfolios (e.g., 3-fund, 5-fund, etc.) work for the ultra wealthy (say, $20+ million)?
Replies: 100
Views: 12181

Re: Do simple index fund-only portfolios (e.g., 3-fund, 5-fund, etc.) work for the ultra wealthy (say, $20+ million)?

What is the liquidity / transaction cost of VTI and VXUS such that a $20 million or $200 million portfolio no longer makes sense? $50 million 3-fund portfolio entirely in vti/vxus/bnd? I think the mutual fund forms of the Vanguard etfs have daily limits. Is there a wealth level at which a holding i...
by ruud
Sun Apr 18, 2021 6:07 pm
Forum: Personal Investments
Topic: Input on taxable bond plan
Replies: 9
Views: 815

Re: Input on taxable bond plan

Coolguy8877 wrote: Sun Apr 18, 2021 5:51 pm -Vanguard Select Funds Tax-Exempt Bond ETF (VTEB; ER 0.06)
-Vanguard Tax-Exempt Bond Index Fund Admiral Shares (VTEAX; ER 0.09)
These are two share classes of the same fund. Do you prefer ETFs or Mutual Funds, in general?
by ruud
Sat Apr 17, 2021 8:18 pm
Forum: Investing - Theory, News & General
Topic: “Take risk on equity side”
Replies: 62
Views: 5753

Re: “Take risk on equity side”

Or you could have a higher stock allocation if you had all short-term treasuries on the bond side. I’ve thought about this. How much of a shift in allocation would be needed for equivalent risk/return? Let’s use 70/30 as an example; if one replaced total bond with short term treasuries, what would ...
by ruud
Fri Apr 16, 2021 10:16 pm
Forum: Investing - Theory, News & General
Topic: What’s the problem with dividends?
Replies: 300
Views: 17385

Re: What’s the problem with dividends?

As of the end of last year, 104 companies in S&P 500 paid no cash dividends. Those include BRK, Apple, Amazon, Tesla (OK, I'm dubious about Tesla ever justifying its price), Facebook, Google/Alphabet) etc. Mind you Apple, BRK, and Google all did buybacks in the past year so they are returning c...
by ruud
Fri Apr 16, 2021 6:10 pm
Forum: Investing - Theory, News & General
Topic: What’s the problem with dividends?
Replies: 300
Views: 17385

Re: What’s the problem with dividends?

I don’t believe the argument that stock prices are so inherently tied to the intrinsic value of a company that a dividend payment drops the price exactly by the amount of the dividend. If it didn't, it would be immediately arbitraged away by traders buying the stock immediately before the dividend ...
by ruud
Thu Apr 15, 2021 9:14 pm
Forum: Investing - Theory, News & General
Topic: What’s the problem with dividends?
Replies: 300
Views: 17385

Re: What’s the problem with dividends?

gtrplayer wrote: Thu Apr 15, 2021 8:48 pm I also don’t buy the idea that a stock decreases in value by the amount of the dividend.
If this were not the case, what's stopping me (or anyone else) from buying a stock right before the ex-dividend date, and selling immediately after?
by ruud
Tue Apr 13, 2021 2:21 pm
Forum: Investing - Theory, News & General
Topic: Beginning to evaluate the holdings of Vanguard Target Retirement Funds
Replies: 138
Views: 8868

Re: Beginning to evaluate the holdings of Vanguard Target Retirement Funds

All Vanguards fund-of-funds (Target Retirement and LifeStrategy) have 40% of equities in international and 30% of (nominal) bonds in international. and Intl Bonds really ramp up as the glide path gets closer to retirement They stay at 30% of the bond allocation, but obviously the bond allocation its...
by ruud
Sat Apr 10, 2021 11:33 am
Forum: Investing - Theory, News & General
Topic: I wish VTWAX was no transaction fee at Schwab
Replies: 95
Views: 8292

Re: I wish VTWAX was no transaction fee at Schwab

I use PV quite a bit, how were you able to label different portfolios instead of Portfolio 1, Portfolio 2, etc? They added a setting called "portfolio names", which is either default (portfolio 1, 2, 3) or custom (allows you to enter names for each portfolio). It's the last dropdown right...
by ruud
Fri Apr 09, 2021 8:32 pm
Forum: Investing - Theory, News & General
Topic: FSMAX Shows 6% Loss Today?
Replies: 39
Views: 2629

Re: FSMAX Shows 6% Loss Today?

this is interesting... a 5.67% distribution is massive and considering this is a passive fund it's even more insane. What exactly caused this? I am thinking Vanguard Funds avoid this sort of thing. VSMAX shows something similar . I would think it's partly because of Tesla joining the S&P500, th...