Search found 2147 matches

by jalbert
Thu Oct 19, 2017 4:58 pm
Forum: Personal Finance (Not Investing)
Topic: [If I die before my spouse, how to direct Vanguard advisors?]
Replies: 20
Views: 1244

Re: [If I die before my spouse, how to direct Vanguard advisors?]

A surviving spouse may work with Vanguard Advisor Services to manage the portfolio and withdrawal processes. They will use their recommended portfolio. It most likely will not be designed to hold LifeStrategy Moderate in all accounts, and tax efficiencies relative to that may well compensate for the...
by jalbert
Thu Oct 19, 2017 4:50 pm
Forum: Personal Finance (Not Investing)
Topic: Changing State Residency - how to handle health care?
Replies: 9
Views: 569

Re: Changing State Residency - how to handle health care?

Many plans affiliate with national networks. The first task is to see if suitable providers in your FL location are in-network for your current insurance plan. If there are not in-network providers in FL, the second step is to see if out-of-network care is covered or affordable. Most likely, everyth...
by jalbert
Thu Oct 19, 2017 4:36 pm
Forum: Investing - Theory, News & General
Topic: 30 year tips auction-thursday 10/19, yield 0.86%?
Replies: 26
Views: 2250

Re: 30 year tips auction-thursday 10/19, yield 0.86%?

I would be buying tens or even sevens with the intention of rolling them when they mature to build my 30 year LMP. Taking 30 years of term risk for less than 1% is iffy. In a LMP for real liabilities, you would be matching the duration of TIPs holdings to the duration of real liabilities, and you w...
by jalbert
Wed Oct 18, 2017 11:34 am
Forum: Investing - Help with Personal Investments
Topic: New for VANGUARD!
Replies: 16
Views: 1572

Re: New for VANGUARD!

seems like the perfect asset allocation at only $20.00 a share. Share price is irrelevant other than as a relative measure. If the share price goes from $20 to $22 then you know it appreciated by 10%. But had they started it at $40/share, it just means you would own half as many shares for any part...
by jalbert
Tue Oct 17, 2017 11:16 pm
Forum: Personal Consumer Issues
Topic: Data Security on Cellular Network
Replies: 8
Views: 783

Re: Data Security on Cellular Network

I am not confident in mobile devices. The connection my be secure but the device is a black hole. I only access financial sites from home on a Linux machine or Windows. I am never away from home for more than a couple of weeks at a time any more so it isn't an issue. I see both upside and downside ...
by jalbert
Tue Oct 17, 2017 3:33 pm
Forum: Investing - Theory, News & General
Topic: Currency risk?
Replies: 38
Views: 1654

Re: Currency risk?

In the long run, I see the currency risk as small enough for me to consider it a wash. My stock allocation is 60/40 US/International, and it doesn't bother me one bit. Just my two cents. Those close to or in retirement are much more sensitive to short-term currency movements than those with long in...
by jalbert
Tue Oct 17, 2017 3:30 pm
Forum: Investing - Theory, News & General
Topic: The overselling of international diversification
Replies: 56
Views: 4174

Re: The overselling of international diversification

The article's results were enabled by cherry-picked data. In particular, the data is for returns starting 1/1/1980. The 1970's was when int'l equity diversification would have helped US investors significantly. And 2002-2008 was a US bull market when US equities underperformed non-US equities, falsi...
by jalbert
Tue Oct 17, 2017 2:43 pm
Forum: Investing - Theory, News & General
Topic: Do International Funds provide significant US exposure?
Replies: 5
Views: 825

Re: Do International Funds provide significant US exposure?

If the US is roughly half of the market weighting, and 1/3 of S&P 500 is foreign revenue, then US revenue from US market weighting = .5 * .667 = .333 US revenue weighting, which is actually higher than the 28% number above. I can't explain why, but what that tells me is most of the US revenue in th...
by jalbert
Tue Oct 17, 2017 2:33 pm
Forum: Personal Consumer Issues
Topic: Data Security on Cellular Network
Replies: 8
Views: 783

Re: Data Security on Cellular Network

No particular product recommendation, but I’ll note that an antivirus database update and full scan on a smartphone or tablet is so fast that there is virtually no reason not to run those before every connection to a financial site. Also a good idea when connecting is to a financial site to close th...
by jalbert
Tue Oct 17, 2017 2:19 pm
Forum: Investing - Theory, News & General
Topic: Wade Pfau’s new book: How Much Can I Spend in Retirement?
Replies: 17
Views: 3880

Re: Wade Pfau’s new book: How Much Can I Spend in Retirement?

I think the issue is that spending needs are what determine required withdrawal amount, but withdrawal amount and location influences spending needs if withdrawals are taxable, a circularity.
by jalbert
Tue Oct 17, 2017 12:12 pm
Forum: Investing - Theory, News & General
Topic: Wade Pfau’s new book: How Much Can I Spend in Retirement?
Replies: 17
Views: 3880

Re: Wade Pfau’s new book: How Much Can I Spend in Retirement?

Bengen assumed that all withdrawals would come from tax-deferred accounts when using his calculations). That made it convenient as it did not require simulating the tax drag of dividend distributions. But I’m not convinced that Bengen’s choice led to any loss of generality. If you include tax liabi...
by jalbert
Tue Oct 17, 2017 11:47 am
Forum: Investing - Theory, News & General
Topic: Currency risk?
Replies: 38
Views: 1654

Re: Currency risk?

I just don't see any evidence that currency risk is a one way street. If your liabilities (living expenses) are normally denominated in your home currency, then currency changes in your assets and liabilities move up or down in lockstep when assets are also denominated in home currency. Currency ri...
by jalbert
Tue Oct 17, 2017 12:14 am
Forum: Personal Consumer Issues
Topic: Data Security on Cellular Network
Replies: 8
Views: 783

Re: Data Security on Cellular Network

The main issue is that a smartphone is not a very secure platform, often made even worse by not following good practices (installing apps that may not be trustworthy and not running antivirus software being examples). You may make an SSL connection from your browser to a web site (also called https ...
by jalbert
Mon Oct 16, 2017 7:05 pm
Forum: Investing - Help with Personal Investments
Topic: Please Criticize my Funds.
Replies: 27
Views: 2140

Re: Please Criticize my Funds.

The major advantage of a target retirement fund is that it can be a single fund all-in-one portfolio, which requires no attention or management by the investor. You never have to rebalance and don't have to monitor your investment. I think the major advantage is that portion of the portfolio is man...
by jalbert
Mon Oct 16, 2017 12:42 pm
Forum: Investing - Theory, News & General
Topic: Which would you rather own: AAPL or S&P 600 Small Cap Index?
Replies: 57
Views: 3145

Re: Which would you rather own: AAPL or S&P 600 Small Cap Index?

Then someone asks, what about the the very top heavy markets, like Denmark, South Korea or Spain, where the top one, two or three index constituents make up sixty or seventy percent of the index? Someone replied to me and said that market cap weighting is still the most diversified way to invest in...
by jalbert
Sun Oct 15, 2017 6:28 pm
Forum: Investing - Help with Personal Investments
Topic: HSA investment [use guaranteed 4% or use equities]
Replies: 22
Views: 1373

Re: HSA investment [use guaranteed 4% or use equities]

I disagree. Roth accounts and HSAs should be filled with equities, with bonds being in tax-deferred or taxable (with municipals). Due to the tax-free growth and tax-free withdrawals (without RMDs), we want those accounts to be the largest. Only if you have filled your tax-deferred and taxable space...
by jalbert
Sat Oct 14, 2017 7:05 pm
Forum: Investing - Theory, News & General
Topic: Which would you rather own: AAPL or S&P 600 Small Cap Index?
Replies: 57
Views: 3145

Re: Which would you rather own: AAPL or S&P 600 Small Cap Index?

Holding just AAPL would be taking substantial security-specific and sector risk which will be uncompensated because they can be diversified. Market capitalization is not synonymous with diversification.
by jalbert
Fri Oct 13, 2017 10:00 pm
Forum: Investing - Help with Personal Investments
Topic: Please Criticize my Funds.
Replies: 27
Views: 2140

Re: Please Criticize my Funds.

Summarizing, I think a good balance between all-in-one funds and a DIY portfolio would be achieved with: 403b and 401K: Target Retirement 2035 Taxable: VTSAX (or VTIAX) Roth: VTSAX + VTIAX + VBTLX Set asset allocation and rebalance in Roth so that the combined allocation of VTSAX (US equity), VTIAX ...
by jalbert
Fri Oct 13, 2017 4:19 pm
Forum: Investing - Help with Personal Investments
Topic: Please Criticize my Funds.
Replies: 27
Views: 2140

Re: Please Criticize my Funds.

+1 Bonds. I also believe you should have more bonds. Suggest 30% in bonds. Why? --25-30% is recommended for new investors with unknown risk tolerance. --Moving from 10% to 30% is a conservative move, --but 30% bonds fits the aggressive rule-of-thumb "age - 10 in bonds". Bonds in taxable. The additi...
by jalbert
Fri Oct 13, 2017 1:53 am
Forum: Personal Finance (Not Investing)
Topic: 2 factor authentication - What if something happens to you?
Replies: 50
Views: 4062

Re: 2 factor authentication - What if something happens to you?

I still don't understand the risk of sharing my password with my spouse. What would the Vanguard logs of system access show? The IP addresses of the devices used to connect would likely also show up in the logs, not just the login name used for the connection. That and other forensic evidence might...
by jalbert
Thu Oct 12, 2017 1:05 pm
Forum: Personal Finance (Not Investing)
Topic: 2 factor authentication - What if something happens to you?
Replies: 50
Views: 4062

Re: 2 factor authentication - What if something happens to you?

My question is, if you disclose your login information to your spouse how would Vanguard know? It seems someone would have to tell Vanguard they had done this. If I had a theft of my Vanguard funds and were asked by Vanguard if I had shared my password with anyone, surely my answer would be “no”. A...
by jalbert
Thu Oct 12, 2017 2:50 am
Forum: Investing - Help with Personal Investments
Topic: Please Criticize my Funds.
Replies: 27
Views: 2140

Re: Please Criticize my Funds.

This needs to be greatly simplified. If you can get a high quality target retirement fund for .07% in the 401K, that is a screaming good deal. Here is a simple, but very effective approach: Target Retirement 2035 in both 401K and 403b. LifeStrategy Moderate Growth or Balanced Index fund (vbiax) in R...
by jalbert
Thu Oct 12, 2017 1:53 am
Forum: Personal Finance (Not Investing)
Topic: 2 factor authentication - What if something happens to you?
Replies: 50
Views: 4062

Re: 2 factor authentication - What if something happens to you?

An executor, POA, or joint account holder can access an account for which they are legally authorized. They need to have their own separate login name and password for online access, and their online account will be able to access the investment account if they are legally authorized to access the i...
by jalbert
Wed Oct 11, 2017 8:43 pm
Forum: Personal Finance (Not Investing)
Topic: 2 factor authentication - What if something happens to you?
Replies: 50
Views: 4062

Re: 2 factor authentication - What if something happens to you?

You can't title an IRA in any name other than yours (until you die). The I in IRA is "Individual."
You can grant power of attorney, typically using an institution's form instead of using a legal document activated by a court.
by jalbert
Wed Oct 11, 2017 8:38 pm
Forum: Personal Finance (Not Investing)
Topic: Growing old without kids or younger caring relatives
Replies: 103
Views: 17887

Re: Growing old without kids or younger caring relatives

More info on senior co-housing communities, one type of aging-in-place community:

http://www.cohousing.org/aging
by jalbert
Tue Oct 10, 2017 11:04 pm
Forum: Personal Finance (Not Investing)
Topic: 2 factor authentication - What if something happens to you?
Replies: 50
Views: 4062

Re: 2 factor authentication - What if something happens to you?

A second principle is that account access should be auditable. Any login should be traceable to precisely one individual.
by jalbert
Tue Oct 10, 2017 10:34 pm
Forum: Investing - Theory, News & General
Topic: Why is inflation so low? Moore's law?
Replies: 23
Views: 2881

Re: Why is inflation so low? Moore's law?

After the 2000 market crash, and ensuing recession, plus all that investment in IT, including much to address year 2000 bug
Y2K spending was a greatly under-appreciated driver of the late 90’s tech bubble, and of the timing of the unwinding that started in March 2000.
by jalbert
Tue Oct 10, 2017 10:27 pm
Forum: Personal Finance (Not Investing)
Topic: 2 factor authentication - What if something happens to you?
Replies: 50
Views: 4062

Re: 2 factor authentication - What if something happens to you?

The principle is that authority and privilege enabled by account credentials should align with legal authority and privileges based on account title, estate executors, and power of attorneys. Vanguard is legally responsible to provide access and account privileges based on legal authority, and they ...
by jalbert
Tue Oct 10, 2017 10:17 pm
Forum: Investing - Theory, News & General
Topic: Factor investing: should financial firms be excluded when screening for value?
Replies: 31
Views: 1446

Re: Factor investing: should financial firms be excluded when screening for value?

I think DFA screens out REITs and utilities, but includes financials. I think Vanguard value indices just apply a value metric to the entire market (within the cap limits of the particular index). S&P Small-cap indices (value or otherwise) have profitability and liquidity screens, but do not exclude...
by jalbert
Tue Oct 10, 2017 7:54 pm
Forum: Personal Finance (Not Investing)
Topic: 2 factor authentication - What if something happens to you?
Replies: 50
Views: 4062

Re: 2 factor authentication - What if something happens to you?

I am interpreting VG's policy to mean if one's account is compromised by the individual(s) the online access information is shared with (otherwise, how could one engage in effective estate planning?). If the wife of Boulderboy's buddy's is going to compromise his buddy's account, his friend has eve...
by jalbert
Tue Oct 10, 2017 2:30 pm
Forum: Investing - Theory, News & General
Topic: Why is inflation so low? Moore's law?
Replies: 23
Views: 2881

Re: Why is inflation so low? Moore's law?

Alan Turing defined how to compute (within some very broad limits) ANYTHING using Turing Machines, which we are all using to type these comments. I am not aware of any similar theorem for Quantum computers, and in my limited (very limited!) understanding of Quantum computers, I don't even see how t...
by jalbert
Tue Oct 10, 2017 1:59 pm
Forum: Personal Finance (Not Investing)
Topic: 2 factor authentication - What if something happens to you?
Replies: 50
Views: 4062

Re: 2 factor authentication - What if something happens to you?

With all of the security risks and advent of 2FA, have y'all thought about contingencies in case something happens to you and your significant other needs to access your accounts, etc? If you go missing with your cell phone, isn't your SO, SOL? My buddy just added a Yubikey to his VG account for 2F...
by jalbert
Mon Oct 09, 2017 4:01 pm
Forum: Investing - Theory, News & General
Topic: Vanguard's long-term outlook for TIPS
Replies: 92
Views: 6931

Re: Vanguard's long-term outlook for TIPS

Someone with years of working life ahead of them is less exposed to inflation than a retiree. A homeowner is less exposed to inflation than a renter. A homeowner with a mortgage is less exposed to inflation than a homeowner who owns their home free and clear. There is not a 1-size-fits-all answer to...
by jalbert
Mon Oct 09, 2017 12:30 am
Forum: Investing - Help with Personal Investments
Topic: I could use some advice on my IRA situation. Not sure what to do.
Replies: 15
Views: 1354

Re: I could use some advice on my IRA situation. Not sure what to do.

GFACX: ER: 1.46% $25,536 HFLCX ER: 1.74% $13,877 NWHWX ER: 1.89% 11,853 FCISX ER: 1.11% $3922 Do I just sell the stocks from WFA and pay the tax? Can I transfer in kind and then just open up a Target Date Fund and then pay any sort of taxes after? Any help and ideas would be greatly appreciated! Yo...
by jalbert
Sat Oct 07, 2017 10:34 pm
Forum: Investing - Help with Personal Investments
Topic: Help! How do I Choose an International Strategy?
Replies: 13
Views: 1284

Re: Help! How do I Choose an International Strategy?

12% VFIAX - Vanguard 500 Index (0.04% ER) 12% VIMAX - Vanguard Mid Cap Index (0.06% ER) 17% VSIAX - Vanguard Small Cap Value Index Fund Admiral (0.07% ER) You may want to know that vimax and vsiax track CRSP indices and CRSP draws lines between market segments at different places than S&P. The text...
by jalbert
Sat Oct 07, 2017 6:23 pm
Forum: Investing - Theory, News & General
Topic: Buffett: U.S. Stocks have been safer than Cash or Treasuries over the last 50 Years.
Replies: 19
Views: 2895

Re: Buffett: U.S. Stocks have been safer than Cash or Treasuries over the last 50 Years.

I infer that Buffett thinks of stocks as being denominated in some non-currency medium such as "equicoin"? I don't think that is correct. Inflation increases the pricing power of the seller of some goods or services, so corporate revenue has a tendency to keep up with or outpace inflation. During t...
by jalbert
Sat Oct 07, 2017 5:25 pm
Forum: Investing - Theory, News & General
Topic: Buffett: U.S. Stocks have been safer than Cash or Treasuries over the last 50 Years.
Replies: 19
Views: 2895

Re: Buffett: U.S. Stocks have been safer than Cash or Treasuries over the last 50 Years.

‘Concurrently, the purchasing power of the dollar declined a staggering 87 per cent. That decrease means that it now takes $1 to buy what could be bought for 13¢ in 1965 (as measured by the Consumer Price Index). A small sleight of hands is that the 87% loss in real terms is the real return of hold...
by jalbert
Sat Oct 07, 2017 2:49 pm
Forum: Investing - Theory, News & General
Topic: Vanguard's long-term outlook for TIPS
Replies: 92
Views: 6931

Re: Vanguard's long-term outlook for TIPS

I have half of my bond holdings in TIPS (as suggested by David Swensen.) However, I have read many articles questioning the usefulness and capabilities of TIPS. And I have been concerned about having such a large stake in my portfolio. Furthermore, Vanguard just sent out an email that concludes: "W...
by jalbert
Fri Oct 06, 2017 3:45 pm
Forum: Investing - Theory, News & General
Topic: VGTSX vs VDVIX / VEIEX blend
Replies: 7
Views: 500

Re: VGTSX vs VDVIX / VEIEX blend

Not really, unless you are counting the possibility of rebalancing between developed and emerging. For lower tax brackets, splitting them has actually improved efficiency while for higher tax brackets you about break even. This all depends on one's situation, but for some typical scenarios they com...
by jalbert
Fri Oct 06, 2017 2:22 pm
Forum: Personal Finance (Not Investing)
Topic: Paper checks, how safe are they?
Replies: 31
Views: 1859

Re: Paper checks, how safe are they?

I often pay by check even tho I have no idea how honest the person may be. The bigger issue is how the honest, legitimate service providers you work with will dispose of your paper checks after they deposit them digitally using a banking app and phone camera. Will they be shredded or just put whole...
by jalbert
Fri Oct 06, 2017 1:22 am
Forum: Investing - Help with Personal Investments
Topic: Please judge my Vanguard portfolio
Replies: 41
Views: 3218

Re: Please judge my Vanguard portfolio

Suppose, hypothetically for the sake of example, you retired 12/31/2017 and your sole source of income will be traditional IRA withdrawals. If you are single with 1 exemption and withdraw $24,000 next year, at today's tax rates, you would owe $1574 in federal income tax. That's an aggregate tax rat...
by jalbert
Fri Oct 06, 2017 12:56 am
Forum: Personal Finance (Not Investing)
Topic: Negotiating merit scholarships
Replies: 32
Views: 1988

Re: Negotiating merit scholarships

As a resident of California he can apply for the Western University Exchange program at U. of Arizona which will cause out of state tuition to be lowered to 1.5x in-state tuition if he is accepted as a WUE student. I don't think there will be much difference in quality of education or academic rigor...
by jalbert
Thu Oct 05, 2017 3:48 pm
Forum: Investing - Help with Personal Investments
Topic: Selling stocks to buy Vanguard Funds
Replies: 9
Views: 808

Re: Selling stocks to buy Vanguard Funds

Depends on your tax bracket and how diverse the stock portfolio is. You may be able to reduce the tax drag by spreading the sale across several or many tax years. You may be able to do it during the depths of a bear market when the gain is less and the index you are buying has fallen by a comparable...
by jalbert
Thu Oct 05, 2017 3:24 pm
Forum: Investing - Help with Personal Investments
Topic: Trying to convince my sister not to use a financial advisor
Replies: 59
Views: 3972

Re: Trying to convince my sister not to use a financial advisor

Well, you could tell her that Vanguard Advisor Services will do the same thing for her for 0.3%.
by jalbert
Thu Oct 05, 2017 11:32 am
Forum: Investing - Theory, News & General
Topic: Muni Bond Funds With Regard to Puerto Rico
Replies: 14
Views: 926

Re: Muni Bond Funds With Regard to Puerto Rico

Bond portfolio managers can buy credit default swaps on bonds they hold if they choose to. These don't have to be wrapped around the bond at initial issue. Munis often have insurance wrapped when the original issue is underwritten because individual investors usually hold a small enough number of th...
by jalbert
Thu Oct 05, 2017 11:18 am
Forum: Personal Consumer Issues
Topic: How do you value your time?
Replies: 97
Views: 3791

Re: How do you value your time?

I'm the kind of person who parks a mile away to avoid paying $20 for parking. I recently got married so this behavior is creating a lot of conflict. My spouse believes in "paying for convenience". I need help in how to value my time so I can find some common ground with my spouse. If I take my annu...
by jalbert
Wed Oct 04, 2017 11:33 pm
Forum: Investing - Help with Personal Investments
Topic: Please judge my Vanguard portfolio
Replies: 41
Views: 3218

Re: Please judge my Vanguard portfolio

I am loving the dividends the 500 gives me When a company distributes profit as a dividend, the value of the company drops by the amount distributed. This does not enhance your total return in any way, and should not influence your decision on whether to hold an SP500 or total US market index in a ...
by jalbert
Wed Oct 04, 2017 11:13 pm
Forum: Investing - Help with Personal Investments
Topic: Please judge my Vanguard portfolio
Replies: 41
Views: 3218

Re: Please judge my Vanguard portfolio

I think this just flew over my head... how would income from a traditional IRA be realized in the zero bracket? Suppose, hypothetically for the sake of example, you retired 12/31/2017 and your sole source of income will be traditional IRA withdrawals. If you are single with 1 exemption and withdraw...
by jalbert
Wed Oct 04, 2017 2:15 pm
Forum: Investing - Help with Personal Investments
Topic: Please judge my Vanguard portfolio
Replies: 41
Views: 3218

Re: Please judge my Vanguard portfolio

Thank you! And that is a good question, I originally rolled into a Roth IRA with the Vanguard and with the new company just went into Roth 401k. I am expecting to retire at a higher tax bracket. I would love your insight though if this does not make sense. The only retirement income that is taxed a...