Search found 427 matches

by JustinR
Sun Sep 01, 2013 7:23 pm
Forum: Investing - Theory, News & General
Topic: Does reinvesting dividends/capital gains in an IRA count?
Replies: 3
Views: 1033

Does reinvesting dividends/capital gains in an IRA count?

Do reinvestments of dividends and capital gains count as a contribution in your Roth IRA? If you've already contributed the max for the year, and more is auto-reinvested by Vanguard during the year, what happens? On a similar note, does reinvesting dividends/capital gains automatically from OTHER fu...
by JustinR
Sun Sep 01, 2013 9:05 am
Forum: Investing - Theory, News & General
Topic: How much do you factor past performance in fund decisions?
Replies: 25
Views: 2227

Re: How much do you factor past performance in fund decision

midareff wrote:Why not pull up a M* chart of them for the period of 2003 (as an example) through now, paying close attention to what happened in the 2007 -2008 crunch?

I can't find any annual charts for the SSgA fund for some reason.

But here's PTTRX:

Image

http://quote.morningstar.com/fund/chart ... %2C0%22%7D
by JustinR
Sun Sep 01, 2013 6:52 am
Forum: Investing - Theory, News & General
Topic: How much do you factor past performance in fund decisions?
Replies: 25
Views: 2227

How much do you factor past performance in fund decisions?

I'm currently trying to decide between two funds for my 401k bond allocation: PIMCO Total Return Fund Institutional (PTTRX) ER: 0.46% 1yr perf: 10.36% 5yr: 8.34% 10yr: 6.82% SSgA U.S. Bond Index Fund - Class C ER: 0.06% 1yr: 4.15% 5yr: 6.04% 10yr: 5.24% Benchmark Barclays US Aggregate Bond TR USD 1y...
by JustinR
Sun Jul 28, 2013 3:05 am
Forum: Investing - Theory, News & General
Topic: 72% 401K Contribution - My Wife Worries People Will Wonder!
Replies: 53
Views: 7382

Re: 72% 401K Contribution - My Wife Worries People Will Wond

My wife started a new job at the end of June. They have a good 401K plan that allows up to 75% of pay contribution to it. Because we were easily living on my salary, we decided to max her 401K out. Well, almost... she wanted to get some small paycheck so we set her to 72% It' still below 17.5K for ...
by JustinR
Sun Jul 14, 2013 1:21 am
Forum: Investing - Theory, News & General
Topic: Is it worth losing Admiral status on a fund to rebalance?
Replies: 21
Views: 2621

Re: Is it worth losing Admiral status on a fund to rebalance

Are you adding to your investment savings (rather than retired and not investing)? If so, why not direct new funds to the lower fund or a similar fund in your 401K, for example. As suggested, you are not talking about a lot of money either way, but rebalancing by adding new money to the desired typ...
by JustinR
Sat Jul 13, 2013 11:20 pm
Forum: Investing - Theory, News & General
Topic: Is it worth losing Admiral status on a fund to rebalance?
Replies: 21
Views: 2621

Is it worth losing Admiral status on a fund to rebalance?

Rebalancing my Roth IRA and one of the transaction puts one Admiral fund under 10k to about $8600. The warning says I could lose my Admiral status for this fund if I proceed. The fund is VGSLX (0.10%), non-Admiral version is VGSIX (0.24%). I was planning on moving $1800 to another fund, but I'm wond...
by JustinR
Wed Jul 10, 2013 8:01 am
Forum: Investing - Theory, News & General
Topic: Started rebalancing today
Replies: 12
Views: 2523

Re: Started rebalancing today

I do all my rebalancing in my 401k or Roth IRA, so it feels like I'm trading monopoly money. Not sure if that's good or bad.
by JustinR
Sat May 18, 2013 5:16 am
Forum: Investing - Theory, News & General
Topic: Compound Interest
Replies: 24
Views: 11674

Re: Compound Interest

Hi all, Been looking for this answer for a bit and I'm a little confused on compound interest.. I fully understand the power of compound interest and I've recently started my Roth IRA at a decently young age..What I fail to understand is how compound interest works if you own a set number of shares...
by JustinR
Mon Apr 29, 2013 6:02 am
Forum: Investing - Theory, News & General
Topic: New I-Bond rate?
Replies: 32
Views: 5410

Re: New I-Bond rate?

Is it too late to hit the April 30 deadline?

What I mean is that does TreasuryDirect count your purchase at time of purchase, or when the funds are withdrawn from your bank?
by JustinR
Fri Apr 26, 2013 6:15 pm
Forum: Investing - Theory, News & General
Topic: Do you trust Mint.com or similar services?
Replies: 29
Views: 5378

Re: Do you trust Mint.com or similar services?

I trust Mint. Mint uses the same 128-bit encryption and physical security that most bank websites use - Bank of America, etc. And according to their website their practices are monitored and verified by TRUSTe and VeriSign, and supported by RSA Security. Besides, you can't make any trades or transf...
by JustinR
Thu Apr 25, 2013 10:28 pm
Forum: Investing - Theory, News & General
Topic: Do you trust Mint.com or similar services?
Replies: 29
Views: 5378

Do you trust Mint.com or similar services?

There are several portfolio aggregate tools, the biggest of which is probably Mint.com. Do you trust Mint or similar sites with your Vanguard information? There hasn't been any precedent of a financial account being compromised through Mint, so I wonder what Vanguard's response be if that were to ha...
by JustinR
Wed Jan 23, 2013 7:28 am
Forum: Investing - Theory, News & General
Topic: Rebalancing from IRA
Replies: 12
Views: 2064

Re: Rebalancing from IRA

I can't find the exact thread now. But I definitely got the feeling that the veteran Boglehead was questioning the wisdom of TSM in an IRA. There's nothing wrong with putting TSM in your IRA: m Step 5: Place tax efficient funds last Tax-efficient funds are fine in any account. Regular rebalancing o...
by JustinR
Wed Jan 23, 2013 5:58 am
Forum: Investing - Theory, News & General
Topic: Rebalancing from IRA
Replies: 12
Views: 2064

Re: Rebalancing from IRA

1. Rebalance with new money.

or

2. Buy a second group of TSM in your IRA, and/or Bonds in your taxable.

Why would people get chided for putting TSM in tax-advantaged space? (genuinely curious)
by JustinR
Sun Jan 20, 2013 6:23 pm
Forum: Investing - Theory, News & General
Topic: DCA vs. Lump Sum: Horse of a different color or not?
Replies: 56
Views: 2281

Re: DCA vs. Lump Sum: Horse of a different color or not?

Furthermore, the risk of the first event - buy and the market goes up - is that you are not as rich as you could have been. The risk of the second event - buy right before the crash - is that your portfolio might never recover. Especially true if you suddenly need money because you have lost your j...
by JustinR
Sun Jan 20, 2013 5:44 pm
Forum: Investing - Theory, News & General
Topic: DCA vs. Lump Sum: Horse of a different color or not?
Replies: 56
Views: 2281

Re: DCA vs. Lump Sum: Horse of a different color or not?

"Single Event Risk" is not a real thing. Every moment you own the market, you are re-buying the market because you always have the option to sell. It seems to me that the misunderstanding about DCA is basically a misunderstanding about buying vs holding-- they are equivalent. The one &quo...
by JustinR
Sun Jan 20, 2013 5:02 pm
Forum: Investing - Theory, News & General
Topic: DCA vs. Lump Sum: Horse of a different color or not?
Replies: 56
Views: 2281

Re: DCA vs. Lump Sum: Horse of a different color or not?

livesoft wrote:
JustinR wrote:If this were your logic, why wouldn't you sell all your equities and DCA back in on a regular basis?

Taxes.
Early redemption fees.
Frequent trading restrictions.

Right, but even in a hypothetical world where those things didn't exist, nobody would do that. And that's the point.
by JustinR
Sun Jan 20, 2013 4:27 pm
Forum: Investing - Theory, News & General
Topic: DCA vs. Lump Sum: Horse of a different color or not?
Replies: 56
Views: 2281

Re: DCA vs. Lump Sum: Horse of a different color or not?

Let's say that you have a chunk of money to invest. I've heard that the benefit of spreading out the investment gradually over time, instead of investing it all at once, is that it helps to avoid going "all in" at one point in time that might turn out to have been bad timing (e.g., at a m...
by JustinR
Sun Jan 13, 2013 9:29 pm
Forum: Investing - Theory, News & General
Topic: How does DCA change the risk?
Replies: 180
Views: 7159

Re: How does DCA change the risk?

"The key fact about DCA is that if it's a good idea, then it's also a good idea to take all your money out of stocks and DCA that money back in." This idea is so laughably absurd that if anyone tried to seriously claim it in an academic paper then they should be greeted by their peers wit...
by JustinR
Sun Jan 13, 2013 8:05 pm
Forum: Investing - Theory, News & General
Topic: How does DCA change the risk?
Replies: 180
Views: 7159

Re: How does DCA change the risk?

If that were the case, then sure, keep 100% stocks, and at the end of every year, take it all (or some) out into cash, and slowly revamp up back to 100%. The key fact about DCA is that if it's a good idea, then it's also a good idea to take all your money out of stocks and DCA that money back in. T...
by JustinR
Sun Jan 13, 2013 8:25 am
Forum: Investing - Theory, News & General
Topic: How does DCA change the risk?
Replies: 180
Views: 7159

Re: How does DCA change the risk?

When you come up with a large sum, you don't know what your AA should be. The AA would be different from your previous AA because the large sum changed your ability, need and willingness to take risk. You can put the money in cash, study what your new AA should be, and then invest in a lump sum und...
by JustinR
Sun Jan 06, 2013 9:22 am
Forum: Investing - Theory, News & General
Topic: Roth IRA 2013 contribution change
Replies: 3
Views: 3102

Re: Roth IRA 2013 contribution change

Spades wrote:Oh good. I didn't know that's how they computed it. Agreed, I could always be reading more Bogle Heads or use the search function more.

:shock:

No need to apologize. I'm sure a lot of people didn't know about it as I didn't catch it until like two days ago. Thanks for reminding us!
by JustinR
Sat Jan 05, 2013 6:46 pm
Forum: Local Chapters and Bogleheads Community
Topic: Suggestions for the Wiki
Replies: 393
Views: 204776

Re: Suggestions for the Wiki

How would you reorganize the section? Your statement about misconceptions assumes that your 401(k) plan allows hardship withdrawals for a home purchase. I added a sentence that hardship withdrawals are defined in the 401(k) plan. The IRS rules are complex which makes writing for the wiki somewhat t...
by JustinR
Sat Jan 05, 2013 9:16 am
Forum: Local Chapters and Bogleheads Community
Topic: Suggestions for the Wiki
Replies: 393
Views: 204776

Re: Suggestions for the Wiki

I think this section could be organized in a better way: m The first bullet point is an incomplete thought. It tells you what hardship withdrawals include without explaining anything else about it like the consequences. For example, the purchase of a first home is still penalized at 10%. There's a l...
by JustinR
Sat Jan 05, 2013 12:26 am
Forum: Investing - Theory, News & General
Topic: Explain Roth IRA income limits to me
Replies: 5
Views: 3307

Explain Roth IRA income limits to me

Seeing as how how much you can contribute to a Roth IRA (if you can even do it at all) depends on how much you make in the current calendar year, and you don't find that out until sometime early in the FOLLOWING year, how do you plan around that? Especially for the reduced tier range of $10-15k in w...
by JustinR
Fri Jan 04, 2013 3:47 am
Forum: Investing - Theory, News & General
Topic: [Slice and Dice] How do you deal with overlap (REIT, EM)?
Replies: 17
Views: 1453

[Slice and Dice] How do you deal with overlap (REIT, EM)?

Many Vanguard funds have a decent amount of REIT in them. Some funds, like Small-cap Value ( VSIAX ) for example, has up to 15% REIT. Over several funds, this can grow to a noticeable size. When figuring out your asset allocation how do you deal with the overlap, if you want to have a separate REIT ...
by JustinR
Wed Jan 02, 2013 6:52 am
Forum: Investing - Theory, News & General
Topic: 2012 Market Returns in review
Replies: 10
Views: 1552

Re: 2012 MARKET RETURNS in review

Hi: We maintain market returns data in the wiki. The US stock returns data for CRSP, and Dow Jones indexes do not become available until the index provider publishes factsheets for the fourth quarter 2012. Here is the US stock market returns page. US index returns - 2012 - Bogleheads Additional ret...
by JustinR
Wed Jan 02, 2013 5:49 am
Forum: Investing - Theory, News & General
Topic: XIRR question - beginner
Replies: 57
Views: 5503

Re: XIRR question - beginner

Does anyone know why, if you start with a balance of 0, XIRR gives you 0% no matter what you do?

Try it, set your first value to $0.
by JustinR
Tue Jan 01, 2013 11:04 am
Forum: Investing - Theory, News & General
Topic: How to calculate return on a portfolio
Replies: 55
Views: 6396

Re: How to calculate return on a portfolio

I wonder why Vanguard doesn't have return in percentage form anywhere on the site, other than "1 year". Or am I missing something?
by JustinR
Tue Jan 01, 2013 5:38 am
Forum: Investing - Theory, News & General
Topic: How to calculate return on a portfolio
Replies: 55
Views: 6396

Re: How to calculate return on a portfolio

Thanks guys. My pleasure. Question about XIRR. It's annualized right? Yes. Is there a way to un-annualize it or another formula or function so that I can get total return similar to the 107% figure above (using total lifetime spreadsheet data)? In other words, I'm not looking for "average annu...
by JustinR
Tue Jan 01, 2013 3:15 am
Forum: Investing - Theory, News & General
Topic: How to calculate return on a portfolio
Replies: 55
Views: 6396

Re: How to calculate return on a portfolio

Thanks guys. Question about XIRR. It's annualized right? Is there a way to un-annualize it or another formula or function so that I can get total return similar to the 107% figure above (using total lifetime spreadsheet data)? In other words, I'm not looking for "average annual return" (is...
by JustinR
Mon Dec 31, 2012 1:12 am
Forum: Investing - Theory, News & General
Topic: [401k] Employer Contributions and returns: contrib. or gain?
Replies: 17
Views: 3011

Re: [401k] Employer Contributions and returns: contrib. or g

Ok thank you for all of your opinions.

I agree now, employer contributions are considered contributions. The return shouldn't be about my personal financial performance, but how well my portfolio did. Also, I'm sure that's how the 401k carrier calculates returns as well.
by JustinR
Mon Dec 31, 2012 12:35 am
Forum: Investing - Theory, News & General
Topic: How to calculate return on a portfolio
Replies: 55
Views: 6396

Re: How to calculate return on a portfolio

How do you link annual returns for a total lifetime return?

Does Rick's formula for linking quarterly -> annual work the same way?

So if you had annual returns of 20%, 30%, -5%, and 40% it would be:

1.2 * 1.3 * .95 * 1.4 - 1 = 107%?

That doesn't seem right to me for some reason.
by JustinR
Sun Dec 30, 2012 5:36 am
Forum: Investing - Theory, News & General
Topic: [401k] Employer Contributions and returns: contrib. or gain?
Replies: 17
Views: 3011

Re: [401k] Employer Contributions and returns: contrib. or g

When calculating your portfolio's return, do you consider employer contributions part of the "contributions" or do you just treat it as part the gains? I'm leaning towards the latter since they're not your contributions. They are not investment gains. They are contributions made on your b...
by JustinR
Sun Dec 30, 2012 5:19 am
Forum: Investing - Theory, News & General
Topic: [401k] Employer Contributions and returns: contrib. or gain?
Replies: 17
Views: 3011

[401k] Employer Contributions and returns: contrib. or gain?

When calculating your portfolio's return, do you consider employer contributions part of the "contributions" or do you just treat it as part the gains?

I'm leaning towards the latter since they're not your contributions.
by JustinR
Sun Dec 30, 2012 1:15 am
Forum: Investing - Theory, News & General
Topic: How to calculate return on a portfolio
Replies: 55
Views: 6396

Re: How to calculate return on a portfolio

Return=(ending balance - starting balance - contributions) / (starting balance + contributions) Dividends reinvested need not be concerned about, but put into another account would need to be factored into this. I have this formula: (End - Start - Contributions) / (Start + (Contributions/2)) OR (En...
by JustinR
Wed Dec 26, 2012 6:51 pm
Forum: Investing - Theory, News & General
Topic: Any reasons NOT to buy or sell this weekend? (end of year)
Replies: 12
Views: 1692

Re: Any reasons NOT to buy or sell this weekend? (end of yea

... Are there any reasons not to do any of the following things now, or rather... 1) Buy in taxable December has a lot of distribution dates. You should usually wait until after a distribution date to buy, so you don't "buy the dividend. Read this Vanguard literature: m Perfect, thanks! I'll c...
by JustinR
Wed Dec 26, 2012 9:54 am
Forum: Investing - Theory, News & General
Topic: Any reasons NOT to buy or sell this weekend? (end of year)
Replies: 12
Views: 1692

Re: Any reasons NOT to buy or sell this weekend? (end of yea

You say you might rebalance in taxable but then you don't list selling in taxable in your question. There may be tax reasons for or against selling in taxable. As for buying in taxable, 401k, or Roth, avoiding a wash sale would be one reason not to buy in any of those places, but that is not linked...
by JustinR
Wed Dec 26, 2012 7:53 am
Forum: Investing - Theory, News & General
Topic: Any reasons NOT to buy or sell this weekend? (end of year)
Replies: 12
Views: 1692

Any reasons NOT to buy or sell this weekend? (end of year)

I'm planning on adding new money this weekend (and perhaps rebalance in my taxable and retirement accounts), which happens to be right before the new year. Are there any reasons not to do any of the following things now, or rather... would it be better to wait to do any of these things NEXT YEAR ? 1...
by JustinR
Wed Dec 26, 2012 7:28 am
Forum: Investing - Theory, News & General
Topic: Rebalancing - literature about frequency, anyone?
Replies: 25
Views: 1535

Re: Rebalancing - literature about frequency, anyone?

http://www.vanguard.com/pdf/icrpr.pdf
https://institutional.vanguard.com/iwe/pdf/FAIPRTP.pdf

From those papers, it seems that rebalancing quarterly at 10% bands, or annually at 10%, is optimal. At least as good as any other rule of thumb I guess.
by JustinR
Sat Dec 22, 2012 9:08 pm
Forum: Investing - Help with Personal Investments
Topic: Tax Implications of Selling Stock Before Year's End?
Replies: 11
Views: 1397

Re: Tax Implications of Selling Stock Before Year's End?

There can be no simple answer because you didn't give enough information about why you need to rebalance and whether this is taxable account or not. I wait until an RBD to rebalance and do not rebalance based on a date on the calendar. Sorry. Both taxable and retirement. I rebalance across my entir...
by JustinR
Sat Dec 22, 2012 12:24 am
Forum: Investing - Help with Personal Investments
Topic: Tax Implications of Selling Stock Before Year's End?
Replies: 11
Views: 1397

Re: Tax Implications of Selling Stock Before Year's End?

Sorry to hijack the thread, but along the same lines...

I'm set to rebalance next week (last week of Dec). This would entail exchanging some funds and POSSIBLY contributing new money. Should I just wait til January 1?

Just looking for a simple answer, thank you in advance.
by JustinR
Fri Dec 14, 2012 4:45 am
Forum: Investing - Theory, News & General
Topic: Stock Market success
Replies: 78
Views: 11498

Re: Stock Market success

I'm looking for success stories of people who have won the lottery. Can anyone help me out?
by JustinR
Mon Nov 19, 2012 5:27 am
Forum: Investing - Theory, News & General
Topic: Do you....DCA, lump sum, VA, etc....? (poll)
Replies: 25
Views: 1331

Re: Do you....DCA, lump sum, VA, etc....? (poll)

I threw lump sum in there as well but I think that more applies to those who come into windfalls, not most people who would like to invest every paycheck. If there is another method I missed, please post. All input appreciated, thanks! Not sure I understand. If you invest every time you have enough...
by JustinR
Wed Oct 24, 2012 1:14 am
Forum: Local Chapters and Bogleheads Community
Topic: Reflections on Bogleheads 11
Replies: 35
Views: 5340

Re: Reflections on Bogleheads 11

Thanks for the writeup Kathleen.

Could you elaborate on why the Vanguard offices were so disappointing? What do you mean by institutionalized? I thought that the Vanguard offices were intentionally not fancy because of costs.
by JustinR
Wed Oct 03, 2012 5:55 am
Forum: Investing - Theory, News & General
Topic: Worse to be in market wishing you were out, or vice versa?
Replies: 44
Views: 3853

Re: Worse to be in market wishing you were out, or vice vers

I don't know. Has anyone ever committed suicide from not being in the market during an upswing?
by JustinR
Sun Sep 23, 2012 3:09 pm
Forum: Investing - Theory, News & General
Topic: Reminder: Most Vanguard Funds Now Have Quarterly Dividends
Replies: 35
Views: 3646

Re: Reminder: Most Vanguard Funds Now Have Quarterly Dividen

Aren't dividends the only way that equities compound?
by JustinR
Sun Sep 16, 2012 3:10 am
Forum: Investing - Theory, News & General
Topic: How do you know when to rebalance?
Replies: 30
Views: 2158

Re: How do you know when to rebalance?

What is your theory, plan, etc for knowing when to rebalance your portfolio? I can't really figure out how to figure it out. Do you require that a particular asset become some percentage too small or too large? How did you figure out how much was too small and how much was too large? For example, I...
by JustinR
Sun Sep 09, 2012 7:38 am
Forum: Investing - Theory, News & General
Topic: I-Bonds and the Treasury Savings Bond Wizard ?
Replies: 85
Views: 20147

Re: Re:

On November 1st, or whenever they become known, enter the new Fixed and Inflation rates into cells C31 and D31; and enter TRUE into cell B31. Do the same for the Monthly Calculator, except it doesn't have the "Ready" column. I also have an I Bond Value Calculator web site which I'll updat...
by JustinR
Sun Sep 09, 2012 4:16 am
Forum: Investing - Theory, News & General
Topic: I-Bonds and the Treasury Savings Bond Wizard ?
Replies: 85
Views: 20147

Re:

Since no one has mentioned a spreadsheet that computes the monthly values, I polished up one I've been using and made it available. Below is a sample for the purchase tommoran2 says he made in March 2008. Not knowing the amount of his purchase I arbitrarily assumed $1,000. The spreadsheet makes no ...
by JustinR
Tue Aug 28, 2012 1:55 am
Forum: Investing - Theory, News & General
Topic: more great service from Treasury Direct!
Replies: 74
Views: 11359

Re: more great service from Treasury Direct!

People didn't see my edit, so I just want to update that on Sunday night, it worked.

I was swarmed with about 10 OTP codes in my inbox at once from the backlogged server. In any case it's working now. Thanks everyone!