Search found 196 matches

by Mode32
Wed May 13, 2020 11:35 am
Forum: Personal Investments
Topic: Odd advice for 401K and IRA
Replies: 23
Views: 1302

Re: Odd advice for 401K and IRA

Whole different post maybe, but I'm comfortable with 100% stocks AA. Maybe considering trying to move some into fixed income to protect assets isn't a bad idea? If you're considering adding bonds to your portfolio, I'd suggest you simply start buying them in your 401k or IRA with regular contributi...
by Mode32
Tue May 12, 2020 11:25 am
Forum: Personal Investments
Topic: Odd advice for 401K and IRA
Replies: 23
Views: 1302

Re: Odd advice for 401K and IRA

Whole different post maybe, but I'm comfortable with 100% stocks AA. Maybe considering trying to move some into fixed income to protect assets isn't a bad idea? If you're considering adding bonds to your portfolio, I'd suggest you simply start buying them in your 401k or IRA with regular contributi...
by Mode32
Tue May 12, 2020 11:21 am
Forum: Personal Investments
Topic: Odd advice for 401K and IRA
Replies: 23
Views: 1302

Re: Odd advice for 401K and IRA

LeeMKE wrote: Mon May 11, 2020 8:30 pm +1 Homestretch

What is appropriate for your FIL to sleep well at night, is not necessarily appropriate for your longer investing horizon.
Good point. I think he may be concerned about protecting some value in portfolio...
by Mode32
Tue May 12, 2020 10:44 am
Forum: Personal Investments
Topic: Odd advice for 401K and IRA
Replies: 23
Views: 1302

Re: Odd advice for 401K and IRA

Asset allocation is a personal decision. A 50/50 asset allocation may be appropriate for your FIL but may not be appropriate for you/spouse. If your entire portfolio is 100% equity, perhaps a take-away from your FIL’s comment is that you have an aggressive asset allocation and to consider adding 10...
by Mode32
Tue May 12, 2020 10:31 am
Forum: Personal Investments
Topic: Odd advice for 401K and IRA
Replies: 23
Views: 1302

Re: Odd advice for 401K and IRA

1) I don't agree with his suggestion, but I'm wondering if I'm missing something that would prompt a more experienced investor like him to say this to my wife and I? It sounds to me as if is judgement may have been affected by stress and anxiety: I'd ignore his advice, obviously, but don't ignore t...
by Mode32
Tue May 12, 2020 10:25 am
Forum: Personal Investments
Topic: Odd advice for 401K and IRA
Replies: 23
Views: 1302

Re: Odd advice for 401K and IRA

I thought this was a pretty good interview, talks about the win, win philosophy on markets at 1:50. https://m.youtube.com/watch?v=9RqPckYYcPk Thanks for the link. The "Win-Win" scenario is definitely an interesting interpretation, and appears to have merit. I think my FIL believes that wi...
by Mode32
Tue May 12, 2020 10:18 am
Forum: Personal Investments
Topic: Odd advice for 401K and IRA
Replies: 23
Views: 1302

Re: Odd advice for 401K and IRA

I think the idea is predicated on the notion that the market will go through a 3 year downturn, and you'll be buying back the same shares you sold at a lower price. Since the future is hard to predict, I don't intend to do what he's recommending. Regards, Fully agree with you. I'm surprised my FIL ...
by Mode32
Tue May 12, 2020 10:14 am
Forum: Personal Investments
Topic: Odd advice for 401K and IRA
Replies: 23
Views: 1302

Re: Odd advice for 401K and IRA

My FIL is a reasonable, take the emotion out of it, buy and hold kind of guy This is exactly what "buy and hold" is intended to prevent. Seems easy to ignore this advice that you seem to know isn't wise, but you did say in law. Are you and spouse disagreeing on this? My wife and I are a b...
by Mode32
Mon May 11, 2020 1:47 pm
Forum: Personal Investments
Topic: Odd advice for 401K and IRA
Replies: 23
Views: 1302

Odd advice for 401K and IRA

Bogleheads, My Father-In-Law (FIL) recently suggested that we think about moving some of our retirement investments ( 100% S&P 500 & Total Stock Mrkt Index funds with a 30 year investment window ) into money markets (about 50% total retirement investments or more), and then dollar cost avera...
by Mode32
Thu May 07, 2020 10:19 am
Forum: Personal Investments
Topic: VFIAX AND VTSAX ?
Replies: 16
Views: 1013

Re: VFIAX AND VTSAX ?

VFIAX and VTSAX essentially perform the same. I invest in both (as needed) and I am very happy. When you decide to invest in one or the other, what is the deciding factor? I hope that question makes sense. Basically if you have money to invest what makes you decide to invest in VFIAX over VTSAX tha...
by Mode32
Sun May 03, 2020 4:52 pm
Forum: Personal Investments
Topic: Taxable for Young Investor
Replies: 35
Views: 2610

Re: Taxable for Young Investor

To start Total Stock Market in a taxable account. When he has over $100K in it he should come back and ask again. There's a chance he will want to sell this investment to purchase a home or pay for graduate school. If either of those is highly likely within the next five years I'd have more of it i...
by Mode32
Thu Apr 30, 2020 12:29 pm
Forum: Personal Investments
Topic: Newbie Here: EF & Understanding Money Market Funds
Replies: 5
Views: 363

Re: Newbie Here: EF & Understanding Money Market Funds

Just saw that HSBC Direct savings acct has 1.70%,

https://www.hsbcdirect.com/

Best of Luck
by Mode32
Wed Apr 29, 2020 12:33 pm
Forum: Personal Investments
Topic: Fixed Income options nearing retirement
Replies: 26
Views: 2001

Re: Fixed Income options nearing retirement

In my opinion, having one low cost and diversified short or intermediate term bond fund in a portfolio will provide safety and income to a portfolio. Hold enough in cash. Nothing else is needed. What percentage of fixed income would you recommend this low cost bond fund to include and would a total...
by Mode32
Wed Apr 29, 2020 10:41 am
Forum: Personal Investments
Topic: Money market rates... Vanguard Prime vs online banks
Replies: 17
Views: 1940

Re: Money market rates... Vanguard Prime vs online banks

What are the thoughts about tax savings (in a taxable account) of having a Municipal Money Market (State and some Federal tax free) with Vanguard is worth the lower rates compared to online banks which may have higher rates (at least for now, but that could change), but taxes would be owed on it? N...
by Mode32
Wed Apr 29, 2020 10:35 am
Forum: Personal Investments
Topic: Fixed Income options nearing retirement
Replies: 26
Views: 2001

Re: Fixed Income options nearing retirement

I think bonds are performing fine. My bond holdings are up for the year. My stock holdings are down for the year. What gives you the idea that bonds aren't doing what they should? Regards, My basic understanding of how bonds are performing currently are that they have lower yields, higher volatilit...
by Mode32
Wed Apr 29, 2020 10:32 am
Forum: Personal Investments
Topic: Fixed Income options nearing retirement
Replies: 26
Views: 2001

Re: Fixed Income options nearing retirement

Bogleheads, My mom is planning on retiring in 3-4 years and currently her 401K allocations are below. She no longer contributes to this 401K because she changed jobs recently and no longer has a 401K option because it is part-time. She has 2 years of EF and the only debt she has is about $28K left ...
by Mode32
Wed Apr 29, 2020 10:31 am
Forum: Personal Investments
Topic: Fixed Income options nearing retirement
Replies: 26
Views: 2001

Re: Fixed Income options nearing retirement

In my opinion, having one low cost and diversified short or intermediate term bond fund in a portfolio will provide safety and income to a portfolio. Hold enough in cash. Nothing else is needed. What percentage of fixed income would you recommend this low cost bond fund to include and would a total...
by Mode32
Wed Apr 29, 2020 10:27 am
Forum: Personal Investments
Topic: Money market rates... Vanguard Prime vs online banks
Replies: 17
Views: 1940

Re: Money market rates... Vanguard Prime vs online banks

What are the thoughts about tax savings (in a taxable account) of having a Municipal Money Market (State and some Federal tax free) with Vanguard is worth the lower rates compared to online banks which may have higher rates (at least for now, but that could change), but taxes would be owed on it?
by Mode32
Mon Apr 27, 2020 10:10 am
Forum: Personal Investments
Topic: Fixed Income options nearing retirement
Replies: 26
Views: 2001

Re: Fixed Income options nearing retirement

I personally don’t own any bonds, and I really don’t know the dynamics that impact bonds in this market. However, reading others recommend bonds in my mom’s situation is a little confusing because I have general idea (right or wrong) that bonds aren’t really doing what they’re suppose to do for por...
by Mode32
Mon Apr 27, 2020 1:16 am
Forum: Personal Investments
Topic: Fixed Income options nearing retirement
Replies: 26
Views: 2001

Re: Fixed Income options nearing retirement

I personally don’t own any bonds, and I really don’t know the dynamics that impact bonds in this market. However, reading others recommend bonds in my mom’s situation is a little confusing because I have general idea (right or wrong) that bonds aren’t really doing what they’re suppose to do for por...
by Mode32
Sun Apr 26, 2020 10:37 pm
Forum: Personal Investments
Topic: Fixed Income options nearing retirement
Replies: 26
Views: 2001

Re: Fixed Income options nearing retirement

I am retired early (just turned 60), and sold my total bond fund last month to invest my fixed income portion only in the stable value fund. I did not change the amount invested in the S&P index fund. When your mom retires, she needs to have multiple year's worth of fixed income to draw out of ...
by Mode32
Fri Apr 24, 2020 2:50 pm
Forum: Personal Investments
Topic: Fixed Income options nearing retirement
Replies: 26
Views: 2001

Re: Fixed Income options nearing retirement

Thanks for all the great insights from everyone. I think she will continue her mortgage. I don't have much experience with bonds at all, so I really have no idea whether it makes sense and/or when it would make sense to replace the Stable Value fund with TIPS and/or Total bond Index. Hoping any of y...
by Mode32
Fri Apr 24, 2020 2:37 pm
Forum: Personal Investments
Topic: Choosing a 529
Replies: 10
Views: 346

Re: Choosing a 529

Recently a friend started a 529 associated with Utah which looked good as well. Your initial list is very good. Keep an eye of Expense Ratio's between plans and the options available as an initial comparison.
by Mode32
Fri Apr 24, 2020 2:32 pm
Forum: Personal Investments
Topic: To REIT or not to REIT?
Replies: 50
Views: 5373

Re: To REIT or not to REIT?

I think OP is asking for opinions of all you smart investors as to whether holding REIT's as investments is worth it for the future. Similarly, I also have 5% REITS (VGSLX) in my IRA along with VTSAX...my thoughts were that the 90% dividend payouts for REIT's along with some appreciation would be ni...
by Mode32
Thu Apr 23, 2020 2:10 pm
Forum: Personal Investments
Topic: Fixed Income options nearing retirement
Replies: 26
Views: 2001

Re: Fixed Income options nearing retirement

Bogleheads, My mom is planning on retiring in 3-4 years and currently her 401K allocations are below. She no longer contributes to this 401K because she changed jobs recently and no longer has a 401K option because it is part-time. She has 2 years of EF and the only debt she has is about $28K left ...
by Mode32
Thu Apr 23, 2020 1:34 pm
Forum: Personal Investments
Topic: Fixed Income options nearing retirement
Replies: 26
Views: 2001

Fixed Income options nearing retirement

Bogleheads, My mom is planning on retiring in 3-4 years and currently her 401K allocations are below. She no longer contributes to this 401K because she changed jobs recently and no longer has a 401K option because it is part-time. She has 2 years of EF and the only debt she has is about $28K left o...
by Mode32
Thu Apr 23, 2020 9:43 am
Forum: Personal Investments
Topic: dollar cost averaging frequency
Replies: 9
Views: 727

Re: dollar cost averaging frequency

In a taxable account, there is an advantage to once a month due to specific ID and multiple lots of equity purchases. In a tax deferred account, I am not sure the effort would be worth any minor difference in gains. Can you please clarify on this for both the taxable and tax advantaged because I do...
by Mode32
Thu Apr 23, 2020 8:43 am
Forum: Personal Investments
Topic: dollar cost averaging frequency
Replies: 9
Views: 727

Re: dollar cost averaging frequency

In a taxable account, there is an advantage to once a month due to specific ID and multiple lots of equity purchases. In a tax deferred account, I am not sure the effort would be worth any minor difference in gains. Can you please clarify on this for both the taxable and tax advantaged because I do...
by Mode32
Fri Apr 17, 2020 12:24 pm
Forum: Personal Investments
Topic: "Allowable" timing of contributions?
Replies: 6
Views: 409

Re: "Allowable" timing of contributions?

If you make it to Friday without having found a dip to buy that week, are you still buying your weekly shares? I think if that is the case I don't see much wrong with this. Its probably more effort than its worth since this will only had a potential 1-5% to total returns for any specific batch you ...
by Mode32
Fri Apr 17, 2020 11:04 am
Forum: Personal Investments
Topic: "Allowable" timing of contributions?
Replies: 6
Views: 409

Re: "Allowable" timing of contributions?

Good insights. Thank you all!
by Mode32
Fri Apr 17, 2020 11:02 am
Forum: Personal Investments
Topic: 37 Yr Old Switching from Dave Ramsey Porfolio to Three-Fund Portfolio
Replies: 5
Views: 1332

Re: 37 Yr Old Switching from Dave Ramsey Porfolio to Three-Fund Portfolio

1. What is the best way and when is the best time to transition from my current portfolio to a three fund portfolio? Should I just exchange all my funds for Vanguard funds all at once? Slowly over time? Just buy new funds? Wait for the market to recover a bit? Am I right in assuming I will have no ...
by Mode32
Wed Apr 15, 2020 12:21 pm
Forum: Personal Investments
Topic: Tax Accountant vs. CFP vs. Investment Attorney?
Replies: 16
Views: 926

Re: Tax Accountant vs. CFP vs. Investment Attorney?

Bogleheads, We thought that our tax accountant would be more helpful in giving us advice on how to optimize taxes on investments, but other than filing regular federal/state taxes, they didn't have any meaningful advice. I thought all tax accountants would be able to do this, but I'm realizing that...
by Mode32
Wed Apr 15, 2020 12:20 pm
Forum: Personal Investments
Topic: "Allowable" timing of contributions?
Replies: 6
Views: 409

"Allowable" timing of contributions?

Bogleheads, In the past, I had monthly automated investment contributions going into taxable and tax-advantaged accounts. Over the last month, I stopped (except 401K) the monthly automated investment process. Instead, I split the contributions into weekly totals and invest during dips throughout the...
by Mode32
Wed Apr 15, 2020 11:40 am
Forum: Personal Investments
Topic: Tax Accountant vs. CFP vs. Investment Attorney?
Replies: 16
Views: 926

Re: Tax Accountant vs. CFP vs. Investment Attorney?

Bogleheads, We thought that our tax accountant would be more helpful in giving us advice on how to optimize taxes on investments, but other than filing regular federal/state taxes, they didn't have any meaningful advice. I thought all tax accountants would be able to do this, but I'm realizing that...
by Mode32
Wed Apr 15, 2020 11:23 am
Forum: Personal Investments
Topic: Tax Accountant vs. CFP vs. Investment Attorney?
Replies: 16
Views: 926

Re: Tax Accountant vs. CFP vs. Investment Attorney?

Thanks everyone! Appreciate the advice and I'm going to start looking into a CFP (no rush, so will take my time and find an ideal situation).

Stay safe.
by Mode32
Tue Apr 14, 2020 9:27 am
Forum: Personal Investments
Topic: A tale of three regrets
Replies: 52
Views: 7865

Re: A tale of three regrets

Lessons? You should pat yourself on the back because you are basically staying the course by keeping your allocation percentages in a pretty narrow range (53 to 61% stocks) through all this volatility. Sure you made a few modest moves, but it was basically minor churning since you did nothing huge ...
by Mode32
Mon Apr 13, 2020 4:28 pm
Forum: Personal Investments
Topic: Tax Accountant vs. CFP vs. Investment Attorney?
Replies: 16
Views: 926

Re: Tax Accountant vs. CFP vs. Investment Attorney?

The better investors would of course tend to take taxes into account while looking at expected returns, dividends, interest, and trust planning. I think the above describes my situation well, and that is the type of tax help I’m looking to get. I would not say my portfolio is complicated (as I stat...
by Mode32
Mon Apr 13, 2020 11:29 am
Forum: Personal Investments
Topic: Tax Accountant vs. CFP vs. Investment Attorney?
Replies: 16
Views: 926

Tax Accountant vs. CFP vs. Investment Attorney?

Bogleheads, We thought that our tax accountant would be more helpful in giving us advice on how to optimize taxes on investments, but other than filing regular federal/state taxes, they didn't have any meaningful advice. I thought all tax accountants would be able to do this, but I'm realizing that ...
by Mode32
Wed Apr 08, 2020 10:56 am
Forum: Personal Investments
Topic: Is this a good time to invest in 529 plan?
Replies: 27
Views: 2376

Re: Is this a good time to invest in 529 plan?

We picked the Utah plan because it offers Vanguard funds (e.g. low cost). We do not live in Utah. Our state only offered a pre-paid tuition plan. That's interesting. How did you come across that plan? We don't live in Utah either. How flexible is the plan in terms of out of state tuition/covers non...
by Mode32
Wed Apr 08, 2020 10:56 am
Forum: Personal Investments
Topic: Is this a good time to invest in 529 plan?
Replies: 27
Views: 2376

Re: Is this a good time to invest in 529 plan?

We picked the Utah plan because it offers Vanguard funds (e.g. low cost). We do not live in Utah. Our state only offered a pre-paid tuition plan. That's interesting. How did you come across that plan? We don't live in Utah either. How flexible is the plan in terms of out of state tuition/covers non...
by Mode32
Tue Apr 07, 2020 2:59 pm
Forum: Personal Investments
Topic: Is this a good time to invest in 529 plan?
Replies: 27
Views: 2376

Re: Is this a good time to invest in 529 plan?

If your state offers no incentive, then you can open up a Vanguard 529 and have access to their low cost funds. Also check the expense ratios if you have a state plan. Doesn't the 529 Plan have to be associated with some state (it doesn't have to match the state you live in)...I didn't know you can...
by Mode32
Sun Apr 05, 2020 3:50 pm
Forum: Personal Investments
Topic: Small Cap Index Fund question
Replies: 5
Views: 339

Re: Small Cap Index Fund question

If you want a type of fund that is not available in your 401k, perhaps you could buy it in an IRA instead. Thanks, I guess I should have clarified more that I'm looking to hear thoughts and insights on whether a "General" Small Cap Index Fund is even worth it at all because I already own ...
by Mode32
Sun Apr 05, 2020 3:29 pm
Forum: Personal Investments
Topic: Small Cap Index Fund question
Replies: 5
Views: 339

Small Cap Index Fund question

If you are considering tilting your portfolio towards Small Caps, does it even make sense to do so if all you have available is a "General" Small Cap Index fund which includes both Growth and Value when it has often been stated that Small Cap Growth creates a drag? My understanding is that...
by Mode32
Fri Apr 03, 2020 5:16 pm
Forum: Personal Investments
Topic: Move away from Small and Mid-Caps?
Replies: 23
Views: 1713

Re: Move away from Small and Mid-Caps?

Again, I really didn't mean to suggest that you stop studying what you have in mind. I'm just strongly suggesting to mull the decision longer than the regular IPS change time. Because the world is more than a little crazy right now. And while you're at it, do follow my advice to read about behavior...
by Mode32
Fri Apr 03, 2020 4:18 pm
Forum: Personal Investments
Topic: Move away from Small and Mid-Caps?
Replies: 23
Views: 1713

Re: Move away from Small and Mid-Caps?

529 Plan: 50/50 large Cap Growth/Large Cap Value Index fund split I'm interested in the reasoning behind this allocation - what benefit do you expect? Originally, I was trying to mirror the Total Stock Market Index Fund in my 529 (hence, the large Cap Growth/Value, Mid & Small Cap) because my p...
by Mode32
Fri Apr 03, 2020 4:18 pm
Forum: Personal Investments
Topic: Move away from Small and Mid-Caps?
Replies: 23
Views: 1713

Re: Move away from Small and Mid-Caps?

This being said, any thought of changing what appears to be a fairly reasonable plan under current chaotic circumstances should really be squashed. VERY FEW PEOPLE can truly think straight right now. If you think you can, your brain is probably playing tricks with you. OP, let me respectfully sugge...
by Mode32
Fri Apr 03, 2020 3:21 pm
Forum: Personal Investments
Topic: Move away from Small and Mid-Caps?
Replies: 23
Views: 1713

Re: Move away from Small and Mid-Caps?

529 Plan: 50/50 large Cap Growth/Large Cap Value Index fund split I'm interested in the reasoning behind this allocation - what benefit do you expect? Originally, I was trying to mirror the Total Stock Market Index Fund in my 529 (hence, the large Cap Growth/Value, Mid & Small Cap) because my p...
by Mode32
Fri Apr 03, 2020 2:30 pm
Forum: Personal Investments
Topic: Move away from Small and Mid-Caps?
Replies: 23
Views: 1713

Re: Move away from Small and Mid-Caps?

I think it’s important to go back to first principles on why you invested in small companies in the first place. The generally accepted rationale is that small companies face unique risks that command a premium in returns. You are observing that risk in action. If you bail on the strategy now, rega...
by Mode32
Fri Apr 03, 2020 2:16 pm
Forum: Personal Investments
Topic: Move away from Small and Mid-Caps?
Replies: 23
Views: 1713

Re: Move away from Small and Mid-Caps?

At what point in the 529 do you want to start adding "fixed income" investments? I was more conservative with our 3 529s than with our retirement. Shorter window to run. The cost is virtually known. Especially if you have the number covered. No reason to risk it for a potential K or Homer...