Search found 92 matches

by passiveTiger
Wed Aug 15, 2018 7:01 pm
Forum: Investing - Theory, News & General
Topic: "Don't Obsess About Expense Ratios"
Replies: 240
Views: 24035

Re: "Don't Obsess About Expense Ratios"

Like your profile graphic but will likely pass on the concept that $800 is a lot to a millionaire. If so, you must be pretty stressed right now with the markets down a good bit today. You could have easily lose $8000 in net worth on a day like this. As a long-time BHer, I would view $800 a year to ...
by passiveTiger
Tue Aug 14, 2018 9:22 pm
Forum: Personal Investments
Topic: Lazy Investment Porfolio Help
Replies: 17
Views: 2033

Re: Lazy Investment Porfolio Help

I appreciate the responses. I updated the list of 401k investment options for my employer with the expense ratios. passiveTiger I see what you are saying about the difference in expense ratios. I would like my asset allocation to be 80/20. Using the recommended list of funds you provided would the ...
by passiveTiger
Tue Aug 14, 2018 9:07 pm
Forum: Personal Investments
Topic: Lazy Investment Porfolio Help
Replies: 17
Views: 2033

Re: Lazy Investment Porfolio Help

Good see this topic. Allocations that I made were 90% equity and 10% debt overall, 80% US equity and 20% foreign equity for the equity portion, and 80% S&P 500 and 20% extended US market for the US equity portion. What is the boglehead norm to split/slice 20% foreign equity into Developed Market, E...
by passiveTiger
Mon Aug 13, 2018 7:38 pm
Forum: Investing - Theory, News & General
Topic: "Don't Obsess About Expense Ratios"
Replies: 240
Views: 24035

Re: "Don't Obsess About Expense Ratios"

To be frank, the investor with under $30k shouldn't be worried about single digit basis point differences in ERs. They should be focused on making more contributions to their accounts. To be frank, it does not have to be an either-or situation. Just at Vanguard. An investor with $3 can get three fu...
by passiveTiger
Mon Aug 13, 2018 6:41 pm
Forum: Investing - Theory, News & General
Topic: "Don't Obsess About Expense Ratios"
Replies: 240
Views: 24035

Re: "Don't Obsess About Expense Ratios"

We're thrifty too. But if Fidelity has greater tracking error than VG, those 4 basis point 'savings' may well evaporate entirely. Recent results from the OP's article indicate that this could easily be the case. I would prefer to wait a couple of years to compare the after-fee performance of Fideli...
by passiveTiger
Mon Aug 13, 2018 6:06 pm
Forum: Investing - Theory, News & General
Topic: "Don't Obsess About Expense Ratios"
Replies: 240
Views: 24035

Re: "Don't Obsess About Expense Ratios"

Bingo. What remains to be seen is whether Fidelity's new TSM fund will have the same after-fee returns as Vanguard's VTSAX. The index they are tracking is slightly different, and historical evidence has shown that Vanguard may have less tracking error than Fidelity and Schwab. So in the end, the 'z...
by passiveTiger
Mon Aug 13, 2018 5:29 pm
Forum: Investing - Theory, News & General
Topic: "Don't Obsess About Expense Ratios"
Replies: 240
Views: 24035

Re: "Don't Obsess About Expense Ratios"

Yes, it is excessive.... compared to Admiral shares, compared to Schwab, and now compared to Fidelity. Higher and “excessive” aren’t the same thing, you know. Bingo. What remains to be seen is whether Fidelity's new TSM fund will have the same after-fee returns as Vanguard's VTSAX. The index they a...
by passiveTiger
Mon Aug 13, 2018 5:15 pm
Forum: Investing - Theory, News & General
Topic: "Don't Obsess About Expense Ratios"
Replies: 240
Views: 24035

Re: "Fidelity Offers New Zero-Cost Funds. Should You Switch?"

Bogleheads: MoneyWatch posted an article today about the new Fidelity zero-cost funds. This is the link: Fidelity Offers New Zero-Cost Funds. Should You Switch? Best wishes. Taylor It's a balanced article. It makes this core observation favoring Vanguard: "It isn’t clear that paying nothing in fund...
by passiveTiger
Sun Aug 12, 2018 2:40 pm
Forum: Investing - Theory, News & General
Topic: New Vanguard Security Code Requirement [2FA: Two-factor authentication]
Replies: 204
Views: 21499

Re: New Vanguard Security Code Requirement [2FA: Two-factor authentication]

And what do you suggest the average person does? A better DNS. Nothing to install. Type in a few numbers for the access point. ... For more: https://www.dni.gov/files/NCSC/documents/campaign/NSA-guide-Keeping-Home-Network-Secure.pdf I looked at the pdf and it has good advice, but could not find a s...
by passiveTiger
Sun Aug 12, 2018 2:33 am
Forum: Investing - Theory, News & General
Topic: New Vanguard Security Code Requirement [2FA: Two-factor authentication]
Replies: 204
Views: 21499

Re: New Vanguard Security Code Requirement [2FA: Two-factor authentication]

And what do you suggest the average person does? A better DNS. Nothing to install. Type in a few numbers for the access point. I use a configured openDNS that blocks known hijacked, compromised, and bad actor domains. Emphasis on “known.” Even a basic unconfigured openDNS will block many known bad ...
by passiveTiger
Sun Aug 12, 2018 1:09 am
Forum: Investing - Theory, News & General
Topic: "Don't Obsess About Expense Ratios"
Replies: 240
Views: 24035

Re: "Don't Obsess About Expense Ratios"

Excessive means more than necessary. The ER is more than necessary for the potential VTSMX investor when that investor can go to Schwab or Fidelity, pay less, and be invested with $1 (at Fidelity). The only argument for someone to be out of the market until that person accumulates $3,000, have to p...
by passiveTiger
Sun Aug 12, 2018 12:30 am
Forum: Personal Investments
Topic: 32 yrs old, lost, and needing guidance
Replies: 29
Views: 2916

Re: 32yo lost and needing guidance

Sorry for the double post.
by passiveTiger
Sun Aug 12, 2018 12:30 am
Forum: Personal Investments
Topic: 32 yrs old, lost, and needing guidance
Replies: 29
Views: 2916

Re: 32yo lost and needing guidance

A boglehead doctor started a website for your exact demographic: https://www.whitecoatinvestor.com/ There you will probably find that each of your questions is answered in remarkable detail. Enjoy! I read his 529 article - https://www.whitecoatinvestor.com/tax-break-for-the-rich-the-529-account-bac...
by passiveTiger
Sun Aug 12, 2018 12:11 am
Forum: Personal Investments
Topic: 32 yrs old, lost, and needing guidance
Replies: 29
Views: 2916

Re: 32yo lost and needing guidance

I am 32. Married filing jointly. Salary before taxes range b/w $300k - $320k (24% tax bracket) My wife does not work and I have 2yo child. 3) Max contribution to 529 I am confused by “Max contribution to 529.” Do you mean $15,000, $30,000, $75,000, or $150,000? $15,000 to not incur federal gift tax...
by passiveTiger
Sat Aug 11, 2018 11:34 pm
Forum: Personal Investments
Topic: 32 yrs old, lost, and needing guidance
Replies: 29
Views: 2916

Re: 32yo lost and needing guidance

gomsoon wrote:
Sat Aug 11, 2018 9:29 pm
I am 32. Married filing jointly.
Salary before taxes range b/w $300k - $320k (24% tax bracket)
My wife does not work and I have 2yo child.

3) Max contribution to 529
I am confused by “Max contribution to 529.”

Do you mean $15,000, $30,000, $75,000, or $150,000?
by passiveTiger
Sat Aug 11, 2018 11:07 pm
Forum: Investing - Theory, News & General
Topic: "Don't Obsess About Expense Ratios"
Replies: 240
Views: 24035

Re: "Don't Obsess About Expense Ratios"

HI; There is a substantial amount of assets in VTSMX. Those people are paying excessively for it, and they can pay much lower elsewhere. They can then continue to accumulate elsewhere at a lower ER. It’s not so much that they get a better deal at the beginning (although that is a good thing), they ...
by passiveTiger
Sat Aug 11, 2018 10:52 pm
Forum: Investing - Theory, News & General
Topic: "Don't Obsess About Expense Ratios"
Replies: 240
Views: 24035

Re: "Don't Obsess About Expense Ratios"

There is a substantial amount of assets in VTSMX. Those people are paying excessively for it, and they can pay much lower elsewhere. The ER for Investor shares is not excessive , it is very reasonable. Paying $14 or less per year is very reasonable for the web site access, basis tracking, tax forms...
by passiveTiger
Sat Aug 11, 2018 3:47 pm
Forum: Investing - Theory, News & General
Topic: "Don't Obsess About Expense Ratios"
Replies: 240
Views: 24035

Re: "Don't Obsess About Expense Ratios"

I cannot see any argument why someone holding VTSMX (or probably any other Vanguard Investor Shares class with an equivalent lower cost option elsewhere) in an IRA should not immediately move it to Schwab or Fidelity or whoever else is significantly lower, although it is likely someone here will ma...
by passiveTiger
Fri Aug 10, 2018 9:46 pm
Forum: Investing - Theory, News & General
Topic: Vanguard Switch to Brokerage Accounts
Replies: 60
Views: 11159

Re: Vanguard Switch to Brokerage Accounts

We got an out-of-the-blue sales call from my (soon to be former) Flagship rep with a "it's just an admin change" story. Why are Flagship reps making these calls? I used to be a Vanguard true-believer (both in the company and the investment philosophy), but something has changed at Vanguard for the ...
by passiveTiger
Fri Aug 10, 2018 9:09 pm
Forum: Investing - Theory, News & General
Topic: The Bigger Story: Fidelity Expense Ratios
Replies: 98
Views: 12066

Re: The Bigger Story: Fidelity Expense Ratios

What's the ER on Fidelity's small value index fund? For the bored investor who is wise enough to not pay someone else for active management but is not wise enough to refrain from doing it oneself, Vanguard has more options for slice-and-dice indexing than Fidelity. John Bogle and Burton Malkiel hav...
by passiveTiger
Fri Aug 10, 2018 8:07 pm
Forum: Personal Investments
Topic: Lazy Investment Porfolio Help
Replies: 17
Views: 2033

Re: Lazy Investment Porfolio Help

I browsed the fidelity site and below is a list of all of the 401k investment options for my employer. I currently hold the FID FREEDOM 2055 (FDEEX) investment. FID 500 INDEX PR (FUSVX) 02/17/1988 FID CAP APPREC K (FCAKX) 11/26/1986 FID VALUE DISCOV K (FVDKX) 12/10/2002 INVESCO DIVRS DIV R6 (LCEFX)...
by passiveTiger
Fri Aug 10, 2018 12:53 pm
Forum: Personal Investments
Topic: Total Stock and Total Bond Market(s) at Vanguard
Replies: 29
Views: 5105

Re: Total Stock and Total Bond Market(s) at Vanguard

Thank you all so much. Of course these excellent replies and they were extremely helpful raises the point mentioned earlier about "tilting". As I understand it, some investors that follow the Boglleheads philosophy would not engage in "tilting", let's say overweighing small caps by buying this addi...
by passiveTiger
Fri Aug 10, 2018 12:08 am
Forum: Investing - Theory, News & General
Topic: "Don't Obsess About Expense Ratios"
Replies: 240
Views: 24035

Re: "Don't Obsess About Expense Ratios"

Interesting note in the prospectus: "The fund may impose a purchase maximum on shareholders that would limit the ability of shareholders to purchase fund shares if their total purchases or account balance exceeds a dollar threshold." In other words, the 0% expense ratio fund might eventually end up...
by passiveTiger
Thu Aug 09, 2018 10:15 pm
Forum: Personal Consumer Issues
Topic: Device to listen to while exercising?
Replies: 23
Views: 1939

Re: Device to listen to while exercising?

Read that listening to high tempo music helps to maximize one's workout. See people wearing earbuds where I run, but haven't bothered asking them what they're using. Would like an inexpensive device to record some tunes from my CD collection. Any recommendations? Thank you in advance. Anything that...
by passiveTiger
Thu Aug 09, 2018 9:50 pm
Forum: Investing - Theory, News & General
Topic: "Don't Obsess About Expense Ratios"
Replies: 240
Views: 24035

Re: "Don't Obsess About Expense Ratios"

Bottom line: STOP investing in vanguard going forward. Instead use the Fido funds. For those deep in accumulation phase this is god sent opportunity that you should grab with both hands. For mid age folks like me who cough up multiple thousands of dollars in fees to vanguard every year for our exis...
by passiveTiger
Thu Aug 09, 2018 9:22 pm
Forum: Investing - Theory, News & General
Topic: "Don't Obsess About Expense Ratios"
Replies: 240
Views: 24035

Re: "Don't Obsess About Expense Ratios"

There's one gimmicky aspect of the funds--they don't have small cap, just mid and large cap. So they're basically not that much better than S&P 500 funds, and not a standalone competitor to a total market fund. To get total market, you'd need to combine the free funds with a small cap fund, which w...
by passiveTiger
Thu Aug 09, 2018 8:48 pm
Forum: Investing - Theory, News & General
Topic: Fidelity Files for Four Fidelity ZERO℠ Funds (0.00% ER)
Replies: 807
Views: 92320

Re: Fidelity Files for two Fidelity ZERO℠ Funds (0.00% ER total stock and total international mutual funds)

I think the big issue is that Fidelity is now requiring no minimum amount to invest while Vanguard requires $3000 to invest and $10000 for admiral shares. Fidelity's shares will all be equal to Vanguard's admiral shares in expense ratio. Removing minimums is one of the more significant changes that...
by passiveTiger
Thu Aug 09, 2018 8:48 pm
Forum: Investing - Theory, News & General
Topic: "Don't Obsess About Expense Ratios"
Replies: 240
Views: 24035

Re: "Don't Obsess About Expense Ratios"

If my Vanguard fund at .04 was good enough to keep in lieu of a Fidelity fund at 0.015, why would I jump at 0? I wouldn't move money from one fund company to the next one go from .17 to .13. If negative tax consequences did not exist, would you move money from one fund company to the next one to go...
by passiveTiger
Wed Aug 08, 2018 4:29 pm
Forum: Investing - Theory, News & General
Topic: Fidelity Files for Four Fidelity ZERO℠ Funds (0.00% ER)
Replies: 807
Views: 92320

Re: Fidelity Files for two Fidelity ZERO℠ Funds (0.00% ER total stock and total international mutual funds)

In regards to LadyGeek's post directly above this, I have edited this post to remove discussion that did not reference the Fidelity filings.
by passiveTiger
Wed Aug 08, 2018 2:37 pm
Forum: Investing - Theory, News & General
Topic: Fidelity Files for Four Fidelity ZERO℠ Funds (0.00% ER)
Replies: 807
Views: 92320

Re: Fidelity Files for two Fidelity ZERO℠ Funds (0.00% ER total stock and total international mutual funds)

That doesn't preclude institutional investors being very cheap to service, so it is not as if you have presented a counterfactual at all. By the way there are at most 3 investors in VSTSX, since the minimum investment is $5B. So, $500K/investor to run a market beta fund? I don't see a problem. :) H...
by passiveTiger
Wed Aug 08, 2018 1:07 pm
Forum: Investing - Theory, News & General
Topic: Fidelity Files for Four Fidelity ZERO℠ Funds (0.00% ER)
Replies: 807
Views: 92320

Re: Fidelity Files for two Fidelity ZERO℠ Funds (0.00% ER total stock and total international mutual funds)

It's interesting that passiveTiger is opposed to bulk discounts as a matter of principle! Why do so many merchants offer them, but for market demand? Totally incorrect. I am definitely in favor of the share class with the greatest amount of assets (i.e., VTSAX Admiral Shares with $199.0 billion in ...
by passiveTiger
Wed Aug 08, 2018 12:59 pm
Forum: Investing - Theory, News & General
Topic: Fidelity Files for Four Fidelity ZERO℠ Funds (0.00% ER)
Replies: 807
Views: 92320

Re: Fidelity Files for two Fidelity ZERO℠ Funds (0.00% ER total stock and total international mutual funds)

How do you know the Investor shares shareholders are subsidizing the Admiral shares investors, if you don’t know how many of each there are and the typical costs associated with each type of account? The overall ER of the Vanguard Total Stock Market Index Fund for all classes is 0.053%. Investors i...
by passiveTiger
Wed Aug 08, 2018 12:38 pm
Forum: Investing - Theory, News & General
Topic: Fidelity Files for Four Fidelity ZERO℠ Funds (0.00% ER)
Replies: 807
Views: 92320

Re: Fidelity Files for two Fidelity ZERO℠ Funds (0.00% ER total stock and total international mutual funds)

How do you know the Investor shares shareholders are subsidizing the Admiral shares investors, if you don’t know how many of each there are and the typical costs associated with each type of account? Right. People who don't have enough assets to reach admiral are the same people who need a lot of h...
by passiveTiger
Wed Aug 08, 2018 10:27 am
Forum: Investing - Theory, News & General
Topic: Fidelity Files for Four Fidelity ZERO℠ Funds (0.00% ER)
Replies: 807
Views: 92320

Re: Fidelity Files for two Fidelity ZERO℠ Funds (0.00% ER total stock and total international mutual funds)

How do you know the Investor shares shareholders are subsidizing the Admiral shares investors, if you don’t know how many of each there are and the typical costs associated with each type of account? The overall ER of the Vanguard Total Stock Market Index Fund for all classes is 0.053%. Investors i...
by passiveTiger
Wed Aug 08, 2018 1:37 am
Forum: Investing - Theory, News & General
Topic: Fidelity Files for Four Fidelity ZERO℠ Funds (0.00% ER)
Replies: 807
Views: 92320

Re: Fidelity Files for two Fidelity ZERO℠ Funds (0.00% ER total stock and total international mutual funds)

How do you know the Investor shares shareholders are subsidizing the Admiral shares investors, if you don’t know how many of each there are and the typical costs associated with each type of account? The overall ER of the Vanguard Total Stock Market Index Fund for all classes is 0.053%. Investors i...
by passiveTiger
Wed Aug 08, 2018 12:46 am
Forum: Investing - Theory, News & General
Topic: Fidelity Files for Four Fidelity ZERO℠ Funds (0.00% ER)
Replies: 807
Views: 92320

Re: "What Fidelity's No-Cost Index Funds Mean for Investors"

The rub is, Vanguard maybe should , but they can't they don't have anywhere to make up the costs. The costs of running the funds are real and they don't have a cash cow to milk for a while... Unless of course everyone starts using PAS. Frankly, Fidelity can't do it either outside of special case sm...
by passiveTiger
Tue Aug 07, 2018 6:32 pm
Forum: Investing - Theory, News & General
Topic: Fidelity Files for Four Fidelity ZERO℠ Funds (0.00% ER)
Replies: 807
Views: 92320

Re: "What Fidelity's No-Cost Index Funds Mean for Investors"

[Thread merged into here. --admin LadyGeek] Bogleheads: Another article about Fidelity's no-cost total market index funds--this time from Morningstar: What Fidelity's No-Cost Index Funds Mean for Investors Best wishes Taylor This is a much better article than the laughably Vanguard-biased one from ...
by passiveTiger
Mon Aug 06, 2018 6:24 pm
Forum: Investing - Theory, News & General
Topic: Fidelity Files for Four Fidelity ZERO℠ Funds (0.00% ER)
Replies: 807
Views: 92320

Re: Fidelity Files for two Fidelity ZERO℠ Funds (0.00% ER total stock and total international mutual funds)

Jim Dahle, M.D. (White Coat Investor) has a great blog post today putting all this in perspective... https://www.whitecoatinvestor.com/expense-ratios/ The article is a great synthesis of this thread. Better than this thread, more facts and no vitriol. I just read that WCI post. If by "more facts" y...
by passiveTiger
Mon Aug 06, 2018 1:49 am
Forum: Investing - Theory, News & General
Topic: Fidelity Files for Four Fidelity ZERO℠ Funds (0.00% ER)
Replies: 807
Views: 92320

Re: Fidelity Files for two Fidelity ZERO℠ Funds (0.00% ER total stock and total international mutual funds)

Great points. The only fund I have in my Roth IRA at Vanguard is VTIAX. Would it be much trouble to move this in-kind to another firm? What would you recommend as far as an equivalent fund.. VTPSX? I wonder if the 0.05% difference is worth it. VTPSX is the "Institutional Plus" share class for the V...
by passiveTiger
Sun Aug 05, 2018 8:02 pm
Forum: Investing - Theory, News & General
Topic: Fidelity Files for Four Fidelity ZERO℠ Funds (0.00% ER)
Replies: 807
Views: 92320

Re: Fidelity Files for two Fidelity ZERO℠ Funds (0.00% ER total stock and total international mutual funds)

The Vanguard CIO did respond . (see bloomberg link) What drk is saying is that responding in-kind means slashing Vanguard expense ratios to zero. That is unlikely to happen, for now anyway. Vanguard responding in kind doesn't mean slashing existing Vanguard ERs to zero. Vanguard responding in kind ...
by passiveTiger
Sat Aug 04, 2018 7:17 pm
Forum: Investing - Theory, News & General
Topic: Using 529 Like a 401k (not for education!)
Replies: 8
Views: 1441

Re: Using 529 Like a 401k (not for education!)

The key thing I didn't know is that for non-qualified 529 withdrawals, if there is no gains, there is no tax or penalty. So an approach would be to put stocks in a 529 plan, then around +/-10 years from retirement, at a major market correction, withdraw everything (preferably at zero gain) and tran...
by passiveTiger
Sat Aug 04, 2018 1:22 pm
Forum: Investing - Theory, News & General
Topic: Fidelity Files for Four Fidelity ZERO℠ Funds (0.00% ER)
Replies: 807
Views: 92320

Re: Fidelity Files for two Fidelity ZERO℠ Funds (0.00% ER total stock and total international mutual funds)

Vanguard's CIO issued a statement about Fidelity's move: https://www.bloomberg.com/news/articles/2018-08-03/vanguard-cio-says-investors-must-consider-catch-of-free-funds This is a very disappointing statement by Vanguard. It actually makes me angry. It attempts to distract from the products being d...