Search found 656 matches

by JustinR
Mon Feb 26, 2018 7:18 pm
Forum: Investing - Theory, News & General
Topic: Personal rules for buying in a down market?
Replies: 55
Views: 4266

Re: Personal rules for buying in a down market?

livesoft wrote:
Mon Feb 26, 2018 5:23 pm
unclescrooge wrote:
Mon Feb 26, 2018 3:46 pm
How much does the market need to go up before you rebalance out of equities?
That's a trade secret which I am not going to divulge.

OK, I will divulge: The market doesn't have to go up at all. It could go down and I would still have to rebalance out of equities.
Wat
by JustinR
Mon Feb 26, 2018 6:33 am
Forum: Investing - Theory, News & General
Topic: Personal rules for buying in a down market?
Replies: 55
Views: 4266

Personal rules for buying in a down market?

It's February 6 and the market dropped drastically. Now that equities are cheaper, you want to jump on the opportunity to buy low. But you don't want to be rash and reactionary. Reacting to really bad days sounds too close to market timing.. yuck. Buying now would mean you could lock in cheap stocks...
by JustinR
Mon Feb 26, 2018 12:01 am
Forum: Investing - Theory, News & General
Topic: Total Bond Market Index Fund vs. CDs?
Replies: 33
Views: 6303

Re: Total Bond Market Index Fund vs. CDs?

CDs are also taxed as normal income, reducing their return even further correct? While bonds you can keep in a tax-advantaged account.
by JustinR
Fri Feb 23, 2018 4:01 pm
Forum: Investing - Theory, News & General
Topic: What if you only live off dividends?
Replies: 316
Views: 35593

Re: What if you only live off dividends?

If my portfolio can give off 100,000 a year in dividends, I don't see the point in selling off my principal. If you have a sizeable portfolio, living off dividends and muni bond interest in retirement seems to be a far better idea then selling off principal. I want to leave money when I die. If you...
by JustinR
Fri Feb 23, 2018 3:42 am
Forum: Investing - Theory, News & General
Topic: What if you only live off dividends?
Replies: 316
Views: 35593

Re: What if you only live off dividends?

If my portfolio can give off 100,000 a year in dividends, I don't see the point in selling off my principal. If you have a sizeable portfolio, living off dividends and muni bond interest in retirement seems to be a far better idea then selling off principal. I want to leave money when I die. Sellin...
by JustinR
Wed Feb 21, 2018 5:28 pm
Forum: Investing - Theory, News & General
Topic: Why investors shouldn’t panic over falling bond prices
Replies: 36
Views: 6795

Re: Why investors shouldn’t panic over falling bond prices

So the 2.90% SEC yield on VBTLX isn't that bad, right? Better than CDs right now. Thanks for all your help understanding this! Absolutely not. Go have a look at Vanguard's summary of the funds performance which you'll find here: https://investor.vanguard.com/mutual-funds/list#/mutual-funds/asset-cl...
by JustinR
Wed Feb 21, 2018 6:20 am
Forum: Investing - Theory, News & General
Topic: Why investors shouldn’t panic over falling bond prices
Replies: 36
Views: 6795

Re: Why investors shouldn’t panic over falling bond prices

Should I be comparing the APR of a CD to the equivalent average annual returns on the bonds (in this case 2.02% for 1yr)? Use SEC yield for funds. The other numbers are backward looking, like it would be to say "last year I made 2.5% in a 1 year CD at X Bank" -- well, that was then and I need to lo...
by JustinR
Wed Feb 21, 2018 12:14 am
Forum: Investing - Theory, News & General
Topic: Why investors shouldn’t panic over falling bond prices
Replies: 36
Views: 6795

Re: Why investors shouldn’t panic over falling bond prices

What metrics should we look at to see if we should or shouldn't buy bonds? The only one should be -- as always -- do you have an objectively better investment with the same qualities that you can use? Typically, this involves something not available to the market at large, or the market will have p...
by JustinR
Wed Feb 21, 2018 12:11 am
Forum: Personal Consumer Issues
Topic: Mental Accounting -- How to solve problem
Replies: 32
Views: 3279

Re: Mental Accounting -- How to solve problem

Money is fungible. $1 in this account is the same as $1 in that account. Mental accounting is just that... it all takes place in your head. It's not reflective of reality, which is that your whole portfolio is a single bucket, not several. As for your savings rate every month, you should still do it...
by JustinR
Tue Feb 20, 2018 11:46 pm
Forum: Investing - Theory, News & General
Topic: Why investors shouldn’t panic over falling bond prices
Replies: 36
Views: 6795

Re: Why investors shouldn’t panic over falling bond prices

So you guys are saying now would not be a good time to buy bonds to rebalance? What should we do if our AA is off-balance? Leave it for now?

What metrics should we look at to see if we should or shouldn't buy bonds?
by JustinR
Tue Feb 20, 2018 1:08 pm
Forum: Investing - Theory, News & General
Topic: What if you only live off dividends?
Replies: 316
Views: 35593

Re: What if you only live off dividends?

Living off of dividends is exactly the same as selling off your stocks though.

So you could rephrase your question as, "What if you only live off selling off your stocks?"
by JustinR
Sat Feb 17, 2018 6:30 am
Forum: Investing - Theory, News & General
Topic: Can someone help me explain to my wife...?
Replies: 81
Views: 10459

Re: Can someone help me explain to my wife...?

Agree to do what she says, but with the stipulation that you'll file for divorce if backtesting proves she was wrong.
by JustinR
Tue Feb 13, 2018 4:50 am
Forum: Personal Finance (Not Investing)
Topic: Co-investment with parents and sibling jealosy [Home construction]
Replies: 22
Views: 2450

Re: Co-investment with parents and sibling jealosy

Sounds great if you want your wife's siblings to resent you guys for the rest of your life. I wouldn't mix money and business with family.
by JustinR
Fri Feb 09, 2018 3:25 am
Forum: Investing - Theory, News & General
Topic: Does this strategy make sense in a falling market?
Replies: 19
Views: 2479

Re: Does this strategy make sense in a falling market?

Incognito2u wrote:
Thu Feb 08, 2018 8:45 pm
Also, no market timing per se is involved
In what universe is this not considered market timing?
by JustinR
Sat Feb 03, 2018 10:07 pm
Forum: Investing - Help with Personal Investments
Topic: Mutual Fund to ETF conversion cost basis math help
Replies: 13
Views: 1187

Re: Mutual Fund to ETF conversion cost basis math help

If your mutual fund uses non-covered shares, Vanguard converts it all as one lot, but you can adjust the basis yourself. (This is necessary because Vanguard has average-cost basis for mutual funds, which is not allowed for ETFs. When I did my conversion, I computed the correct basis for my five lot...
by JustinR
Sat Feb 03, 2018 5:00 am
Forum: Investing - Help with Personal Investments
Topic: Mutual Fund to ETF conversion cost basis math help
Replies: 13
Views: 1187

Re: Mutual Fund to ETF conversion cost basis math help

Can someone who has done a mutual fund to etf conversion at Vanguard chime in on what exactly happens? If your mutual fund uses non-covered shares, Vanguard converts it all as one lot, but you can adjust the basis yourself. (This is necessary because Vanguard has average-cost basis for mutual funds...
by JustinR
Fri Feb 02, 2018 4:28 am
Forum: Investing - Help with Personal Investments
Topic: Mutual Fund to ETF conversion cost basis math help
Replies: 13
Views: 1187

Re: Mutual Fund to ETF conversion cost basis math help

Can someone who has done a mutual fund to etf conversion at Vanguard chime in on what exactly happens? If your mutual fund uses non-covered shares, Vanguard converts it all as one lot, but you can adjust the basis yourself. (This is necessary because Vanguard has average-cost basis for mutual funds...
by JustinR
Thu Feb 01, 2018 6:18 am
Forum: Investing - Help with Personal Investments
Topic: Mutual Fund to ETF conversion cost basis math help
Replies: 13
Views: 1187

Re: Mutual Fund to ETF conversion cost basis math help

Can someone who has done a mutual fund to etf conversion at Vanguard chime in on what exactly happens?
by JustinR
Thu Feb 01, 2018 5:03 am
Forum: Investing - Theory, News & General
Topic: The Final, Definitive Thread on Brokerage Transfer Bonuses
Replies: 1044
Views: 184538

Re: The Final, Definitive Thread on Brokerage Transfer Bonuses

Thanks. Question about shares (not really related to bonuses). When you sell shares, does the brokerage do anything with the cost basis information and taxes? Or is it 100% on you to calculate cost basis and how much you owe in tax? If the former, then isn't it important to know which shares got tr...
by JustinR
Thu Feb 01, 2018 5:00 am
Forum: Investing - Help with Personal Investments
Topic: Mutual Fund to ETF conversion cost basis math help
Replies: 13
Views: 1187

Re: Mutual Fund to ETF conversion cost basis math help

Example: Say I want to convert VFWAX (Admiral mutual fund) to its ETF equivalent (VEU). VFWAX covered shares: 6.485 $26.18 VFWAX nav: $35.85 VEU nav: $57.68 Please show me the math of exactly what shares I will have after the conversion and their cost basis. Your current cost basis is 6.485 x 26.18...
by JustinR
Wed Jan 31, 2018 4:01 am
Forum: Investing - Help with Personal Investments
Topic: Mutual Fund to ETF conversion cost basis math help
Replies: 13
Views: 1187

Mutual Fund to ETF conversion cost basis math help

To preface, I did do a search on this already. I know there are tons of threads about ETF conversions and cost basis. But I can't seem to wrap my head around what people are saying. I'm hoping that by someone showing the actual math, I'll understand what will happen once I do the conversion. Example...
by JustinR
Wed Jan 31, 2018 2:21 am
Forum: Investing - Theory, News & General
Topic: The Final, Definitive Thread on Brokerage Transfer Bonuses
Replies: 1044
Views: 184538

Re: The Final, Definitive Thread on Brokerage Transfer Bonuses

I'm just starting to get into this so I'm going to ask some stupid questions. I've already skimmed through all 17 pages. 1) Can you open multiple accounts at the same time, at the same brokerage, and get separate bonuses? For example, opening two accounts for $500 bonuses (for $100k deposit each) r...
by JustinR
Tue Jan 30, 2018 6:46 am
Forum: Investing - Theory, News & General
Topic: The Final, Definitive Thread on Brokerage Transfer Bonuses
Replies: 1044
Views: 184538

Re: The Final, Definitive Thread on Brokerage Transfer Bonuses

I'm just starting to get into this so I'm going to ask some stupid questions. I've already skimmed through all 17 pages. 1) Can you open multiple accounts at the same time, at the same brokerage, and get separate bonuses? For example, opening two accounts for $500 bonuses (for $100k deposit each) ra...
by JustinR
Sun Jan 28, 2018 3:05 am
Forum: Investing - Theory, News & General
Topic: The Final, Definitive Thread on Brokerage Transfer Bonuses
Replies: 1044
Views: 184538

Re: The Final, Definitive Thread on Brokerage Transfer Bonuses

8. What about taxes? Non-IRA bonuses are taxable. Some custodians include any on your 1099, some only if it's $600 or more. You still owe regardless. IRAs bonuses have no taxes due at the time, and Roths never will. Check the terms on IRAs. Most custodians count the bonus as interest. Some want to ...
by JustinR
Sun Jan 21, 2018 5:44 am
Forum: Investing - Theory, News & General
Topic: What's your U.S. : International ratio?
Replies: 213
Views: 38510

Re: What's your U.S. : International ratio?

50/50

Anyone who doesn't is perpetuating home country bias.
by JustinR
Sun Jan 21, 2018 5:36 am
Forum: Investing - Theory, News & General
Topic: Rebalancing Bands-Someone please explain??
Replies: 4
Views: 673

Re: Rebalancing Bands-Someone please explain??

It's so that your asset allocation doesn't drift too far out of whack, and it also gives you an objective time to rebalance without timing the market. So common rebalancing bands would be: A relative 25% from the desired allocation. This is good for small allocation percentages. For example, if your...
by JustinR
Fri Jan 19, 2018 4:13 am
Forum: Investing - Theory, News & General
Topic: Year 2000 retirees using the '4% rule' - Where are they now?
Replies: 363
Views: 41782

Re: Year 2000 retirees using the '4% rule' - Where are they now?

50x? Hasn't it been shown that a 2% SWR is way more extreme than necessary?

Like a 3% SWR is already bulletproof...2% is just working longer than you need to for no reason?
by JustinR
Sat Jan 06, 2018 10:32 am
Forum: Investing - Theory, News & General
Topic: Does Rebalancing Really Matter, Especially in Taxable?
Replies: 14
Views: 1593

Re: Does Rebalancing Really Matter, Especially in Taxable?

The purpose of rebalancing is to maintain your asset allocation, not for performance.
by JustinR
Sun Dec 24, 2017 8:17 pm
Forum: Investing - Theory, News & General
Topic: [Yahoo Finance no longer works - Alternatives to download securities quotes]
Replies: 287
Views: 47229

Re: How to Get Stock Quotes Into Excel

I'm lost. I don't know what I'm doing wrong. I'm running Excel 2010. I downloaded the 2017.11.30 Zip file from this link: https://smf-add-in.blogspot.ca/2017/11/new-zip-file-version-20171130.html I installed the first one that came up in the Zip file, RCH_Stock_Market_Functions. When I go to File--...
by JustinR
Sat Dec 23, 2017 6:12 pm
Forum: Investing - Theory, News & General
Topic: One answer to the Dividend stocks puzzle from behavioral finance
Replies: 184
Views: 14690

Re: One answer to the Dividend stocks puzzle from behavioral finance

Another factor which the author did not address is that how a person is first introduced to investing also carries a lot of weight regarding their ability to change. That is quite an interesting observation. Do you know of any articles about it? I don't know about that as a data driven observation ...
by JustinR
Sat Dec 23, 2017 6:10 pm
Forum: Investing - Theory, News & General
Topic: One answer to the Dividend stocks puzzle from behavioral finance
Replies: 184
Views: 14690

Re: One answer to the Dividend stocks puzzle from behavioral finance

"selling shares led to an equivalent outcome." If you have an $8mm portfolio if 23 individual stocks, deciding what to sell every 3 months would be extremely difficult. Plus, as you sell down your portfolio the dividend income decreases. The reality for me is that selling shares is not an equivalen...
by JustinR
Sat Dec 16, 2017 10:45 pm
Forum: Investing - Theory, News & General
Topic: 2nd million is easier!
Replies: 123
Views: 25372

Re: 2nd million is easier!

For me it looks something like this: Starting in 1993: 8 years $500k - 2001 10 years $1 million - 2004 12 years $2 million - 2006 17 years $5 million - 2010 21 years $10 million - 2014 24 years $15 million - 2017 In the past 12 months I added over $2.3 million to my net worth, approximately half of...
by JustinR
Sat Dec 16, 2017 5:53 pm
Forum: Investing - Theory, News & General
Topic: 2nd million is easier!
Replies: 123
Views: 25372

Re: 2nd million is easier!

Has anyone been tracking their net worth on a spreadsheet?

For some reason, my line is linear, even though it would seem it should be somewhat exponential (like a curve). What's your line like?
by JustinR
Fri Dec 15, 2017 11:03 pm
Forum: Investing - Theory, News & General
Topic: What is total return vs. dividend investing?
Replies: 95
Views: 12744

Re: What is total return vs. dividend investing?

Thanks for the replies. You answered my question in theory, but not mathematically. From what I understand, when a dividend is issued, doesn't the stock price drop that exact amount? So mathematically the dividend is exactly the same as selling your stock, except it's forced and you pay more taxes ...
by JustinR
Fri Dec 15, 2017 10:29 pm
Forum: Investing - Theory, News & General
Topic: What is total return vs. dividend investing?
Replies: 95
Views: 12744

Re: What is total return vs. dividend investing?

Justin, Think of it this way. You & I are retired. We both have a portfolio of $1 Million. I' am living off of the dividends/interest. Your selling off your portfolio. Which portfolio do you think is going to last longer? The Trinity Study 4% rule was all about a 30 year sell off of the portfolio. ...
by JustinR
Fri Dec 15, 2017 5:40 am
Forum: Investing - Theory, News & General
Topic: What is total return vs. dividend investing?
Replies: 95
Views: 12744

Re: What is total return vs. dividend investing?

Is a dividend basically just a "forced sale" of your stock? What's the mathematical difference between dividends and manually selling your stock? It seems like dividends are worse in every way, since some percentage of it could be taxed as normal income. What's the benefit of dividends over manually...
by JustinR
Wed Dec 13, 2017 10:42 pm
Forum: Investing - Theory, News & General
Topic: Do ETFs have the same issue as mutual funds at year end (distributions)?
Replies: 13
Views: 2264

Re: Do ETFs have the same issue as mutual funds at year end (distributions)?

Stock ETFs will rarely pay capital-gains distributions, except just after getting started. For example, Vanguard FTSE All-World Ex-US Small-Cap started near the 2009 market bottom. In 2009 and 2010, it had to sell shares to handle index changes, and everything was way up, so it distributed some cap...
by JustinR
Thu Dec 07, 2017 6:47 pm
Forum: Investing - Theory, News & General
Topic: Is SEC Yield a good way to pick a bond fund?
Replies: 9
Views: 1716

Re: Is SEC Yield a good way to pick a bond fund?

Vanguard gives the SEC yield of TIPS funds without the inflation component. (Footnote G) This is (IMO) a superior way to do it. You can come up with your own estimate for future inflation and apply it yourself. For iShares, you'd have to look up what assumption they are making. Here's a WSJ article...
by JustinR
Thu Dec 07, 2017 5:28 am
Forum: Investing - Theory, News & General
Topic: Is SEC Yield a good way to pick a bond fund?
Replies: 9
Views: 1716

Is SEC Yield a good way to pick a bond fund?

I don't really understand the SEC Yield. People recommended looking at that metric when comparing bond funds. For example: STIP (iShares 0-5 Year TIPS Bond ETF) SEC Yield: 5.55% 1yr: 0.47% 3yr: 0.57% 5yr: 0.11% Inception: 1.02% Huh? How are the past returns so low but the SEC Yield so high? Should I...
by JustinR
Wed Dec 06, 2017 12:52 am
Forum: Investing - Theory, News & General
Topic: Why would I invest in this bond fund vs keeping it in a savings account?
Replies: 3
Views: 1187

Why would I invest in this bond fund vs keeping it in a savings account?

For my HSA, I need to put my money into a treasuries fund so I don't get taxed by my state. This is the commission fee option from TDA. At those returns, I could do better just parking it in a "high interest" savings account (1.2% or so). Am I missing something? Why would anyone invest in this? http...
by JustinR
Sat Dec 02, 2017 5:27 am
Forum: Investing - Theory, News & General
Topic: Filling up the Roth IRA first
Replies: 13
Views: 1550

Re: Filling up the Roth IRA first

See I have the money and I could take care of it the Roth in January but I had planned to spread out the payments of $5500 over the course of the year. Am I missing out by sticking to this strategy? I think you're missing something very basic about investing. The whole point of investing is that we...
by JustinR
Sat Nov 25, 2017 3:57 pm
Forum: Investing - Theory, News & General
Topic: Why does everyone keep increasing their international stock %?
Replies: 101
Views: 10860

Re: Why does everyone keep increasing their international stock %?

Always amazes me the folks get hammered for loving Mr. Bogles advice.... on a forum called BOGLEheads. :confused Why aren't the "loving Mr. Bogles advice" folks advocating for tilting heavily to corporate bonds or going 100% equity for those eligible for Social Security? Why are the vast majority o...
by JustinR
Sat Nov 25, 2017 1:51 pm
Forum: Investing - Theory, News & General
Topic: HSA: "Pay out of pocket" vs Withdraw math problem
Replies: 48
Views: 4214

Re: HSA: "Pay out of pocket" vs Withdraw math problem

What? You're paying yourself for medical costs you paid out of pocket in the past. You're not actually using tax free money to buy a motorcycle. What you guys are calling #3 (saving receipts and then using that credit later to buy a motorcycle), isn't actually a thing. I think you are still not get...
by JustinR
Fri Nov 24, 2017 11:33 pm
Forum: Investing - Theory, News & General
Topic: Why does everyone keep increasing their international stock %?
Replies: 101
Views: 10860

Re: Why does everyone keep increasing their international stock %?

One reason I admire Jack so much is that he doesn't feel obligated to follow or agree with the current trend, although he doesn't hesitate to start one if he believes it's right! It seems that everyone is arguing with Jack these days about the wisdom of holding a significant percentage of one's por...
by JustinR
Fri Nov 24, 2017 11:22 pm
Forum: Investing - Theory, News & General
Topic: HSA: "Pay out of pocket" vs Withdraw math problem
Replies: 48
Views: 4214

Re: HSA: "Pay out of pocket" vs Withdraw math problem

Nobody's answered your question because the answer is "it depends on your tax rates during accumulation and on withdrawal from either account." The differences are likely small. But most people don't see the value in picking #1 or #2 because there really is a distinct #3. #3: Pay out of pocket, sav...
by JustinR
Fri Nov 24, 2017 4:28 pm
Forum: Investing - Theory, News & General
Topic: HSA: "Pay out of pocket" vs Withdraw math problem
Replies: 48
Views: 4214

Re: HSA: "Pay out of pocket" vs Withdraw math problem

Many folks are actually arguing for #3: Pay out of pocket, save receipts, grow tax free. After retirement use receipts to withdraw tax-free and spend it on non-medical expenses. That's the same as #1. Nobody's really answered my question. Phrased a different way, if you could convert your 401k mone...
by JustinR
Fri Nov 24, 2017 5:18 am
Forum: Investing - Theory, News & General
Topic: Why does everyone keep increasing their international stock %?
Replies: 101
Views: 10860

Re: Why does everyone keep increasing their international stock %?

Bogleheads: "We believe that we don't know how any holdings will perform, so we buy the market. *Except US vs International."
by JustinR
Fri Nov 24, 2017 4:43 am
Forum: Investing - Theory, News & General
Topic: HSA: "Pay out of pocket" vs Withdraw math problem
Replies: 48
Views: 4214

HSA: "Pay out of pocket" vs Withdraw math problem

Help me reconcile this one. HSA medical costs. You can either: Pay out of pocket and keep the money invested in your HSA to grow tax free Withdraw from your HSA and invest it in your taxable account Most people suggest the first one, paying out of pocket. This is the tax consequence: Pay out of pock...