Search found 3694 matches

by jalbert
Tue Oct 23, 2018 12:51 am
Forum: Personal Finance (Not Investing)
Topic: Tax Implications of a (very) Appreciated House
Replies: 11
Views: 1081

Re: Tax Implications of a (very) Appreciated House

Can any one comment on the tax implications of either getting a reverse mortgage or alternatively renting the house to generate the needed money to finance the assisted living . Alan With a reverse mortgage, the house must be sold and the mortgage paid off if the owner discontinues living in the ho...
by jalbert
Mon Oct 22, 2018 10:12 pm
Forum: Investing - Theory, News & General
Topic: Debunking Bonds in Taxable
Replies: 44
Views: 3761

Re: Debunking Bonds in Taxable

Tx.. good points So let's say you want to rebalance between taxable and not taxable so the percentage of bonds is constant across them. Perhaps you can weight differently (multiply taxable by 1/0.85, tax-sheltered by 1/0.70 -assuming your marginal tax 30% -, to consider the actual money you would h...
by jalbert
Mon Oct 22, 2018 9:54 pm
Forum: Investing - Help with Personal Investments
Topic: Timing the market - Some say it’s possible?
Replies: 36
Views: 1691

Re: Timing the market - Some say it’s possible?

Red Spot wrote:
Mon Oct 22, 2018 9:53 pm
The DJIA declined today - due to profit taking
How does anyone know that was the root cause?
by jalbert
Mon Oct 22, 2018 9:54 pm
Forum: Investing - Help with Personal Investments
Topic: Timing the market - Some say it’s possible?
Replies: 36
Views: 1691

Re: Timing the market - Some say it’s possible?

Anything is possible. Anyone ever heard of more risk, more reward? It takes more risk. Whether there is greater expected reward is debatable. Most likely, you have a 50/50 chance of being right and over time, they should average out to no increased expected return. Because risk is increased, risk-a...
by jalbert
Mon Oct 22, 2018 6:25 pm
Forum: Investing - Theory, News & General
Topic: DFA small value... acitve management?
Replies: 58
Views: 2774

Re: DFA small value... acitve management?

DFA funds are not tracking any 3rd party indexes, but they do have 3rd party indexes as benchmark. This is mainly for legal reasons I guess. All funds should be benchmarked against some objective measure of return. It is interesting that they recommend benchmarking with the Russell 2000 which has h...
by jalbert
Mon Oct 22, 2018 2:56 pm
Forum: Investing - Theory, News & General
Topic: DFA small value... acitve management?
Replies: 58
Views: 2774

Re: DFA small value... acitve management?

Yes, but the index funds that track those indices are passively managed. The difference between that and what DFA does is that index fund managers do not control the index changes. I find this to be arbitrary. If DFA had an outside consultant make an "index rule" and then stuck to that - then it wo...
by jalbert
Mon Oct 22, 2018 2:12 pm
Forum: Investing - Help with Personal Investments
Topic: Feedback requested on approximating total stock market
Replies: 9
Views: 703

Re: Feedback requested on approximating total stock market

Thanks all for good ideas. I'd end up using both "Option 1" for my 401k w/ 80% of my assets (this plan doesn't offer VEXMX), and "Option 2" at my current employer's 401k which has about 20% of my assets and does offer VEXMX. Or, I could roll the Vanguard managed 401k into the other one and it all i...
by jalbert
Mon Oct 22, 2018 1:55 pm
Forum: Personal Finance (Not Investing)
Topic: New scam hackers spoofing actual correspondence with your own history
Replies: 8
Views: 1445

Re: New scam hackers spoofing actual correspondence with your own history

So, I received an email with the last thread of a conversation I had with a financial firm last August. It looked like it was a new message from the firm, but with no new message to me. However, this one had a .doc attachment. If you touch the attachment, you get an online screen that seems to be a...
by jalbert
Mon Oct 22, 2018 3:16 am
Forum: Investing - Help with Personal Investments
Topic: Constructing a 100% equity diversified Factor portfolio
Replies: 12
Views: 1201

Re: Constructing a 100% equity diversified Factor portfolio

Just discovered ISCF, thanks. Does seem superior to VSS. Has a strong size factor and a decent momentum factor. One thing that concerns me though is it actually has a negative value factor...this may be due to the short time it has been in existence though. Stocks with positive loading on momentum ...
by jalbert
Mon Oct 22, 2018 2:59 am
Forum: Personal Finance (Not Investing)
Topic: Real Estate Versus Stocks
Replies: 58
Views: 5246

Re: Real Estate Versus Stocks

According to the article, rental yields account for about half of the long-run return on housing. So owning a diversified portfolio of rent-yielding property is superior to pure home ownership. This is not correct. When you own a home you receive the imputed income of not having to pay rent. Home o...
by jalbert
Mon Oct 22, 2018 2:14 am
Forum: Investing - Theory, News & General
Topic: 50 Stocks Enough to Diversify Idiosyncratic Risk?
Replies: 26
Views: 1638

Re: 50 Stocks Enough to Diversify Idiosyncratic Risk?

50-60 may well do it. You may need 100 to be sure. A pitfall is many authors use short-term volatility as the measure of risk. Idiosyncratic risk is not so common that you will reliably see it over short periods of time, but over long horizons it has a much higher probability of showing up. As a res...
by jalbert
Mon Oct 22, 2018 12:55 am
Forum: Investing - Help with Personal Investments
Topic: Feedback requested on approximating total stock market
Replies: 9
Views: 703

Re: Feedback requested on approximating total stock market

+1 don’t get too hung up on precisely matching the M* style box numbers. They will differ slightly due to rounding errors and they may not be using portfolio descriptions from the same closing date for all funds. As FiveK noted, VEXMX is the market completion index for the S&P500. At any point in ti...
by jalbert
Sun Oct 21, 2018 11:30 pm
Forum: Investing - Theory, News & General
Topic: How long will TIAA Trad (3.5%) stay ahead of the fixed income pack?
Replies: 14
Views: 1214

Re: How long will TIAA Trad (3.5%) stay ahead of the fixed income pack?

When comparing to bond yields keep in mind that the 3.5% is a crediting rate not an APR. Assuming it compounds monthly, the APR IS actually approximately 3.45% as that will compound over the year to a 3.5% crediting rate. That is not a big deal and would not change the assessment of the investment, ...
by jalbert
Sat Oct 20, 2018 11:00 pm
Forum: Investing - Help with Personal Investments
Topic: “The Worst Kind of Bear Market”
Replies: 23
Views: 4479

Re: “The Worst Kind of Bear Market”

While I agree this is not the most likely outcome in the next, say 30 years, when something actually happened in the past, it is a legitimate risk that must be accounted for.
by jalbert
Sat Oct 20, 2018 10:38 pm
Forum: Investing - Help with Personal Investments
Topic: 401K and general asset allocation advice
Replies: 8
Views: 605

Re: 401K and general asset allocation advice

I agree with others that what you have is adequate but could be simplified. You’ve done a great job with saving. I would suggest just holding int’l stocks in the taxable account to get the foreign tax credit. Roll the old 401K to the new 401K so you have 3 accounts: taxable, traditional 401K (trad) ...
by jalbert
Sat Oct 20, 2018 7:30 pm
Forum: Investing - Help with Personal Investments
Topic: “The Worst Kind of Bear Market”
Replies: 23
Views: 4479

Re: “The Worst Kind of Bear Market”

This inflation issue is why many old timers are big fans of dividend stocks like utilities
Utility stocks incorporate some nominal term risk, and I think underperformed the broad market significantly during the US inflation of the 70’s. High oil prices were a double whammy.
by jalbert
Sat Oct 20, 2018 7:21 pm
Forum: Investing - Help with Personal Investments
Topic: “The Worst Kind of Bear Market”
Replies: 23
Views: 4479

Re: “The Worst Kind of Bear Market”

With a larger percentage stock allocation, you expect stocks to best inflation, and nominal bonds, especially treasuries, would be used to diversify the high volatility of stocks. With a high percentage bond allocation, bond holdings should be dominated by TIPS because stock holdings are likely insu...
by jalbert
Sat Oct 20, 2018 2:32 pm
Forum: Personal Consumer Issues
Topic: Pull kids from school for vacations?
Replies: 136
Views: 5609

Re: Pull kids from school for vacations?

I don't have kids in school so please enlighten me. When people say schools don't "allow" absences, what exactly does that mean? Do they like fine you or something? What authority exactly do they have to say no?
Most if not all states have truancy laws in their education code.
by jalbert
Sat Oct 20, 2018 2:26 pm
Forum: Investing - Help with Personal Investments
Topic: Do Any Annuities Offer a "Free Lunch"?
Replies: 21
Views: 1817

Re: Do Any Annuities Offer a "Free Lunch"?

True. But it is a higher return of principal amount plus some interest for life based on longevity tables. If you live longer than longevity tables suggest you receive more than the premium you “win”. If you die before the longevity tables suggest the insurance company. Those benefits are independe...
by jalbert
Sat Oct 20, 2018 2:08 pm
Forum: Personal Consumer Issues
Topic: Pull kids from school for vacations?
Replies: 136
Views: 5609

Re: Pull kids from school for vacations?

We have the means and PTO to travel more and would love to travel sometime in January - early March. But my child doesn't have school vacation until April. She's a great student, yet the school is surprisingly strict about unexcused absences for elementary school. So I'm curious how others feel abo...
by jalbert
Sat Oct 20, 2018 1:05 pm
Forum: Investing - Help with Personal Investments
Topic: Heavy Loss in Stable Value Fund of 401k investments
Replies: 31
Views: 3696

Re: Heavy Loss in Stable Value Fund of 401k investments

This kind of investment should have been banned in 401k plans when there is a discrepancy between so called NAV and book value. All stable value funds will exhibit such a discrepancy between fund value and asset value of the underlying securities. That is in fact the core feature that makes them a ...
by jalbert
Sat Oct 20, 2018 12:45 pm
Forum: Investing - Theory, News & General
Topic: The End of Indexing?
Replies: 33
Views: 4070

Re: The End of Indexing?

1. In a bull market when nearly all stocks are going up regardless of their fundamentals, index funds are hard to beat. But over a long-term period that includes both bull and bear markets, well run managed funds that avoid investing in stocks with poor fundamentals can deliver superior performance...
by jalbert
Sat Oct 20, 2018 12:29 pm
Forum: Investing - Theory, News & General
Topic: DFA small value... acitve management?
Replies: 58
Views: 2774

Re: DFA small value... acitve management?

moghopper wrote:
Sat Oct 20, 2018 9:08 am
The S&P500 has added 16 companies this year, and 26 in 2017.

Are Standard and Poor's active managers?
Yes, but the index funds that track those indices are passively managed. The difference between that and what DFA does is that index fund managers do not control the index changes.
by jalbert
Sat Oct 20, 2018 12:24 pm
Forum: Investing - Help with Personal Investments
Topic: Do Any Annuities Offer a "Free Lunch"?
Replies: 21
Views: 1817

Re: Do Any Annuities Offer a "Free Lunch"?

Of course, it's a variable annuity! I wouldn't walk; I would run away from this shark. The only kind of annuity that makes sense to me is an inflation-indexed Single-Premium Immediate Annuity (inflation-indexed SPIA) bought at an advanced age when it gets cheaper, if still alive. Annuities of this ...
by jalbert
Sat Oct 20, 2018 1:20 am
Forum: Investing - Theory, News & General
Topic: DFA small value... acitve management?
Replies: 58
Views: 2774

Re: DFA small value... acitve management?

Because DFA makes the rules they use and designs their own indices to track, their funds are not actually passive funds, but quantitative active funds. They don’t have an army of stock analysts, but use quantitative algorithms based on a variety of factors either to include or exclude a stock from t...
by jalbert
Fri Oct 19, 2018 10:26 pm
Forum: Investing - Theory, News & General
Topic: The End of Indexing?
Replies: 33
Views: 4070

Re: The End of Indexing?

Neils Jensen, the founder of Absolute Return Partners, a UK-based alternative investment product provider and institutional investment advisor, doesn’t like index funds? Shocking.
by jalbert
Fri Oct 19, 2018 2:10 am
Forum: Investing - Help with Personal Investments
Topic: Does Lifestrategy make sense in Roth IRA's
Replies: 26
Views: 3122

Re: Does Lifestrategy make sense in Roth IRA's

So in this example then the only difference "might" be that an individual might play a bit of the moment game and (if in individual equity funds) not let the portfolio ride whereas LS is always rebalancing (perhaps daily). I doubt Vanguard rebalances daily. It is most likely that Vanguard will do a...
by jalbert
Thu Oct 18, 2018 10:57 pm
Forum: Personal Finance (Not Investing)
Topic: Paying off the mortgage early - Isn't this the opposite of "putting more money into your house"?
Replies: 82
Views: 6579

Re: Paying off the mortgage early - Isn't this the opposite of "putting more money into your house"?

I still don’t understand why inflation matters. It’s a fixed payment no matter what. From the minute you purchased you locked in the cost of your home. That does not change if you pay it off or not. Either way you have to pay it, and who cares if it’s x percentage less of your take home pay in the ...
by jalbert
Thu Oct 18, 2018 6:11 pm
Forum: Investing - Theory, News & General
Topic: Why dismiss sectors?
Replies: 31
Views: 1638

Re: Why dismiss sectors?

Personally, I like high dividends despite the tax drag and the slower growth but I don't want to beat that old horse to death here. People are this board are for the most part adamantly opposed to a high dividend stream. Maybe they will feel differently in retirement when they don't want the hassle...
by jalbert
Thu Oct 18, 2018 3:53 pm
Forum: Investing - Help with Personal Investments
Topic: Heavy Loss in Stable Value Fund of 401k investments
Replies: 31
Views: 3696

Re: Heavy Loss in Stable Value Fund of 401k investments

If I had known better. Instead of moving all my money into this Stable Value Fund on Oct 9 last week to get ready for the rollover, rather into the Vanguard MMF, I would have a better than 4% not a -0.5% return YTD. I am out of this 401k plan now. Thanks everyone for your wisdom! Ouch! An interesti...
by jalbert
Thu Oct 18, 2018 1:40 pm
Forum: Investing - Help with Personal Investments
Topic: Heavy Loss in Stable Value Fund of 401k investments
Replies: 31
Views: 3696

Re: Heavy Loss in Stable Value Fund of 401k investments

I'd appreciate your wisdom if there is any course I can take at this moment. I have no advice about what recourse you may have, but if you look at your total return of the fund for your holding period including the loss at the end, and compare to a total bond index fund return, you may find it trac...
by jalbert
Thu Oct 18, 2018 1:27 pm
Forum: Investing - Help with Personal Investments
Topic: Heavy Loss in Stable Value Fund of 401k investments
Replies: 31
Views: 3696

Re: Heavy Loss in Stable Value Fund of 401k investments

This is why it is important to understand what the underlying assets are in a stable value fund. This may not be easy to do as the issuers may not publish the portfolio they hold for the fund. Some stable value funds have assets that are commingled with the general portfolio of an insurance company ...
by jalbert
Thu Oct 18, 2018 1:11 pm
Forum: Personal Finance (Not Investing)
Topic: Paying off the mortgage early - Isn't this the opposite of "putting more money into your house"?
Replies: 82
Views: 6579

Re: Paying off the mortgage early - Isn't this the opposite of "putting more money into your house"?

If you don't fully pay off your mortgage, your monthly payment typically will not change. This statement is also true, but it's not the full picture. Because a much greater proportion of the monthly payment is going toward principal as you pay down your mortgage, the mortgage is paid off much soone...
by jalbert
Thu Oct 18, 2018 12:55 pm
Forum: Investing - Help with Personal Investments
Topic: TLH - mutual fund partner trios?
Replies: 12
Views: 394

Re: TLH - mutual fund partner trios?

Vtclx can also be used for such a TLH.
by jalbert
Thu Oct 18, 2018 12:51 pm
Forum: Investing - Theory, News & General
Topic: Top stocks of 2000 trail the market over the next 18 years
Replies: 39
Views: 2880

Re: Top stocks of 2000 trail the market over the next 18 years

I think that is the idea behind the RAFI funds. They weight the stocks not by market cap but by several other measures (e.g., P/B, P/S, etc), which in practice means they underweight those top stocks and overweight other stocks in the index. Sometimes that is a good thing and sometimes it isn't. Fr...
by jalbert
Thu Oct 18, 2018 1:11 am
Forum: Investing - Theory, News & General
Topic: Seeking data on the long term return for 5 Vanguard funds.
Replies: 7
Views: 693

Re: Seeking data on the long term return for 5 Vanguard funds.

I’m trying to determine the total return for five Vanguard funds, NAESX, VIMSX, VFINX, VGTSX, and VBMBX. Keep in mind that NAESX, VIMSX, and VGTSX have each had one or more changes to the index they track. Moreover, currently, NAESX is a small/midcap fund and VIMSX is a mid/largecap fund despite th...
by jalbert
Wed Oct 17, 2018 10:24 pm
Forum: Investing - Help with Personal Investments
Topic: Does Lifestrategy make sense in Roth IRA's
Replies: 26
Views: 3122

Re: Does Lifestrategy make sense in Roth IRA's

If bonds have fallen in price and stocks have increased (for example), you’d ideally want to sell only stocks for your withdrawal. If you sell shares of an all-in-one-fund, you inevitably sell some bonds. The rebalancing isn’t the core issue. Rebalancing is the reason you are inclined to sell the a...
by jalbert
Wed Oct 17, 2018 3:48 pm
Forum: Personal Finance (Not Investing)
Topic: Can you please tell me how much FDIC insurance this scenario has?
Replies: 13
Views: 597

Re: Can you please tell me how much FDIC insurance this scenario has?

The owner is just a single owner Then, they added 2 different beneficiaries Example: John is the single account owner of a Checking, Savings, and several CDs, at one FDIC insured bank. John put Sally and Bob as beneficiaries on his Checking, Savings, and all is his CDs. What would the FDIC insuranc...
by jalbert
Wed Oct 17, 2018 2:38 pm
Forum: Personal Consumer Issues
Topic: Should we move to San Diego from east coast?
Replies: 138
Views: 10385

Re: Should we move to San Diego from east coast?

The car-oriented Southern California lifestyle is not to everyone’s taste. An interest in that lifestyle should be established before worrying about cost of living. There are very very few cities and towns in the U.S. that are not car oriented. I don't think SD is any more car oriented than the vas...
by jalbert
Wed Oct 17, 2018 1:35 pm
Forum: Personal Finance (Not Investing)
Topic: Can you please tell me how much FDIC insurance this scenario has?
Replies: 13
Views: 597

Re: Can you please tell me how much FDIC insurance this scenario has?

libralibra wrote:
Wed Oct 17, 2018 1:26 pm
500k (1 owner x 2 beneficiaries x 250k)
I think it would be $750K. 1 owner plus 2 beneficiaries = 3 people with beneficial interest and insurance at $250K ea.
by jalbert
Wed Oct 17, 2018 2:07 am
Forum: Investing - Help with Personal Investments
Topic: International Fund Down - What to do?
Replies: 36
Views: 2305

Re: International Fund Down - What to do?

very slightly off topic but I read the Bogleheads plan above and it says never bear too much risk, yet I see hordes of ordinary people I know buying individual stock like Netflix saying it's a sure future bet while I think single stocks are too much risk for the average Joe long term investor. What...
by jalbert
Wed Oct 17, 2018 2:03 am
Forum: Investing - Help with Personal Investments
Topic: More safe: Treasury ETF or Bank Account
Replies: 6
Views: 868

Re: More safe: Treasury ETF or Bank Account

I was having a discussion with another person about investments today and the topic came up of which is ultimately safer: An ETF of all Treasuries (such as VGSH or SHV) or an FDIC insured bank account. Opinions? There are two issues in play. The first is how the risk of default of a US treasury sec...
by jalbert
Wed Oct 17, 2018 12:48 am
Forum: Personal Consumer Issues
Topic: Should we move to San Diego from east coast?
Replies: 138
Views: 10385

Re: Should we move to San Diego from east coast?

The car-oriented Southern California lifestyle is not to everyone’s taste. An interest in that lifestyle should be established before worrying about cost of living.
by jalbert
Wed Oct 17, 2018 12:38 am
Forum: Investing - Help with Personal Investments
Topic: Does Lifestrategy make sense in Roth IRA's
Replies: 26
Views: 3122

Re: Does Lifestrategy make sense in Roth IRA's

An advocate for not using Target Date or other all-in-one funds once withdrawals begin: "Even though I love target-date funds for accumulators,” says Christine Benz, director of personal finance at Morningstar, “most all-in-one funds are suboptimal when it comes to retirement withdrawals because th...
by jalbert
Wed Oct 17, 2018 12:29 am
Forum: Investing - Help with Personal Investments
Topic: 30 y/o Boglehead student, advice for 65 year old Retiring Father
Replies: 30
Views: 2912

Re: 30 y/o Boglehead student, advice for 65 year old Retiring Father

LS Conservative Income is a great choice if he is deathly afraid of the stock market. Only a 20% stock allocation, a 20% drop in the stock market is a 4% drop in asset value. Reasonable choice, but I’d prefer the extra diversification from the inclusion of TIPS in the bond portfolio of the fund Tar...
by jalbert
Tue Oct 16, 2018 10:10 pm
Forum: Investing - Help with Personal Investments
Topic: CREF Global Equities as 403b VTWSX equivalent?
Replies: 8
Views: 495

Re: CREF Global Equities as 403b VTWSX equivalent?

CREF Stock is designed as an all-in-one stock portfolio. It has large, mid, and small-caps, US, developed non-US, and emerging non-US stock. It is a single fund solution for a globally diversified stock portfolio. CREF Stock has a higher percentage in US stock than the total world index, but it is a...
by jalbert
Tue Oct 16, 2018 6:33 pm
Forum: Investing - Help with Personal Investments
Topic: International Fund Down - What to do?
Replies: 36
Views: 2305

Re: International Fund Down - What to do?

You could sell the fidelity fund, take the tax loss, and purchase the similar Vanguard international fund. Whats the advantage there? Also I have Fido account so it might cost me $25-50 to hold the vanguard in Fido . The main advantage is being able to take $3000/yr of the loss against earned incom...
by jalbert
Tue Oct 16, 2018 2:12 pm
Forum: Personal Finance (Not Investing)
Topic: Long-term Care Insurance
Replies: 102
Views: 4651

Re: Long-term Care Insurance

Yes, a good elder care attorney is a must for anyone doing serious LTC planning. If you don't have a desire for a legacy, the issue is much simpler. You can just wait until one spouse needs LTC, then annuitize 'countable' assets for the benefit of the other spouse. If both spouses need LTC simultan...
by jalbert
Mon Oct 15, 2018 6:41 pm
Forum: Personal Finance (Not Investing)
Topic: Switching from ACA to Medicare
Replies: 27
Views: 2771

Re: Switching from ACA to Medicare

Probably not helpful to the OP at this stage, but there often is no disadvantage to splitting up the enrollments for a couple in ACA-exchange-based plans other than paying two bills. It enables having different plans for each person as well. Then when one qualifies for Medicare, the other spouse is ...
by jalbert
Mon Oct 15, 2018 4:33 pm
Forum: Investing - Help with Personal Investments
Topic: Exchanging VT total world stock for VTI & VXUS
Replies: 14
Views: 808

Re: Exchanging VT total world stock for VTI & VXUS

Let’s first look at it without considering that market indices are float-adjusted. If you hold the stocks held by VT and VXUS at market cap weight, you do not have to rebalance to maintain market cap weight as the stocks change in value over time. This is true whether held as individual stocks, in a...