Search found 842 matches

by jdilla1107
Wed Jan 08, 2020 8:13 pm
Forum: Personal Finance (Not Investing)
Topic: Roth distributions
Replies: 3
Views: 490

Roth distributions

I understand that Roth distributions are not taxed if they are qualified. But, do they affect taxation in any way? Like do they affect: - AGI/MAGI - Taxable income - Long term capital gains rate - Any credits or deductions that may have been had otherwise without the distribution (eg: ACA credit) Th...
by jdilla1107
Tue Jan 07, 2020 9:56 pm
Forum: Personal Finance (Not Investing)
Topic: Business credit card rules?
Replies: 27
Views: 2041

Re: Business credit card rules?

Using a business card for personal expenses violates the Terms of Service for all the business credit cards I have looked at. However, I'm not sure what the worst case scenario is for violating the terms of service. I guess they could close your account? Everyone here says it's fine to do, but when...
by jdilla1107
Tue Jan 07, 2020 5:02 pm
Forum: Personal Finance (Not Investing)
Topic: Business credit card rules?
Replies: 27
Views: 2041

Re: Business credit card rules?

Using a business card for personal expenses violates the Terms of Service for all the business credit cards I have looked at. However, I'm not sure what the worst case scenario is for violating the terms of service. I guess they could close your account? Everyone here says it's fine to do, but whene...
by jdilla1107
Mon Dec 30, 2019 4:04 pm
Forum: Investing - Theory, News & General
Topic: Grok's tip 5:To keep real wealth skip Gold, buy TIPs
Replies: 117
Views: 37259

Re: Grok's tip 5:To keep real wealth skip Gold, buy TIPs

I agree, it's a highly volatile inflation hedge. I haven't checked it, but commodities might do about the same, and maybe a little less volatile. Granted, this might be a cheat, given things like oil prices are part of the CPI and part of most commodity baskets. Huh. I literally never considered th...
by jdilla1107
Sun Dec 29, 2019 1:26 pm
Forum: Investing - Theory, News & General
Topic: I don't have faith in small and value premiums
Replies: 409
Views: 15094

Re: I don't have faith in small and value premiums

This is not the right question. Everyone should believe the answer to this question is yes. Consider this question: - Do you believe that utility stocks provide different diversification and different kind of risk than technology stocks? Of course they do. That's not interesting. The real question ...
by jdilla1107
Sun Dec 29, 2019 12:41 pm
Forum: Investing - Theory, News & General
Topic: I don't have faith in small and value premiums
Replies: 409
Views: 15094

Re: I don't have faith in small and value premiums

The main question that you should ask and you should study is Do you believe that small and value factors provide diversification and different kind of risk? KlangFool Boy that is succinct and right on target. Dave This is not the right question. Everyone should believe the answer to this question ...
by jdilla1107
Sun Dec 29, 2019 12:19 pm
Forum: Investing - Theory, News & General
Topic: I don't have faith in small and value premiums
Replies: 409
Views: 15094

Re: I don't have faith in small and value premiums

C) Won't that give you a better portfolio with the best of both worlds: lower volatility and high expected return? Does it bother you that this didn't happen through the last financial crisis in 2009? When exactly do I get my lower volatility if it's not during a crisis like 2009? jdilla1107, Are y...
by jdilla1107
Sun Dec 29, 2019 10:17 am
Forum: Investing - Theory, News & General
Topic: I don't have faith in small and value premiums
Replies: 409
Views: 15094

Re: I don't have faith in small and value premiums

KlangFool wrote: Sun Dec 29, 2019 8:50 am C) Won't that give you a better portfolio with the best of both worlds: lower volatility and high expected return?
Does it bother you that this didn't happen through the last financial crisis in 2009? When exactly do I get my lower volatility if it's not during a crisis like 2009?
by jdilla1107
Fri Dec 27, 2019 11:24 pm
Forum: Personal Investments
Topic: Thinking about NOT making 2019 solo 401K contribution
Replies: 12
Views: 696

Re: Thinking about NOT making 2019 solo 401K contribution

My Solo 401k plan at Vanguard allows for an employee and employer contribution. The employee contribution can be Roth, so I contributed the max for me of $19k.
by jdilla1107
Mon Dec 16, 2019 11:48 am
Forum: Investing - Theory, News & General
Topic: Margin interest deduction with personal loan?
Replies: 11
Views: 591

Re: Margin interest deduction with personal loan?

The IRS doesn't care about how you bucket the money. They won't see it like this: "If I take out a margin loan and lend it to them" They will see it as two independent actions: - You received interest from a personal loan. - You paid interest on a margin loan. Whether those two are actually connecte...
by jdilla1107
Wed Dec 11, 2019 8:15 pm
Forum: Investing - Theory, News & General
Topic: EE bond doubling feature
Replies: 3
Views: 553

Re: EE bond doubling feature

That's great, thank you.

Let the buying continue!
by jdilla1107
Wed Dec 11, 2019 7:54 pm
Forum: Investing - Theory, News & General
Topic: EE bond doubling feature
Replies: 3
Views: 553

EE bond doubling feature

The only government website I can find that talks about the EE bond doubling feature is in the FAQ section of this page: https://www.treasurydirect.gov/indiv/research/indepth/ebonds/res_e_bonds_eeratesandterms_eebondsissued052005andafer.htm This bothers me as an FAQ answer doesn't feel very contract...
by jdilla1107
Wed Dec 11, 2019 7:27 pm
Forum: Investing - Theory, News & General
Topic: the silliness of infinite time scale
Replies: 18
Views: 1758

Re: the silliness of infinite time scale

1) I don't buy the argument that bogleheads are into backtesting or it is a "tenant". I think it's a minority that like to fiddle. There is no mention of backtesting in the bogleheads investment philosophy: https://www.bogleheads.org/wiki/Bogleheads%C2%AE_investment_philosophy 2) Your argument sound...
by jdilla1107
Tue Dec 10, 2019 12:45 pm
Forum: Investing - Theory, News & General
Topic: Commission free ETF and Stock trading at WellsTrade
Replies: 18
Views: 804

Re: Commission free ETF and Stock trading at WellsTrade

They just sent an email to me about this: Updated WellsTrade® pricing for online stock and exchange traded funds (ETFs) A new unlimited $0 commission rate will apply to stock and ETF (excluding penny stocks) orders placed online in your WellsTrade account on or after December 9, 2019. Other fees and...
by jdilla1107
Fri Dec 06, 2019 10:51 am
Forum: Investing - Theory, News & General
Topic: Bonds vs. Bond Fund?
Replies: 51
Views: 3907

Re: Bonds vs. Bond Fund?

The idea of replacing CDs with bond funds has cost me about $16K in 2019. - Interest rates drop, my intermediate bond funds go up 12%! I agree that bonds are so simple but so complex. I really like CDs because of their safety. I also like intermediate bond funds that hold high quality bonds; but th...
by jdilla1107
Thu Dec 05, 2019 9:47 pm
Forum: Investing - Theory, News & General
Topic: Bonds vs. Bond Fund?
Replies: 51
Views: 3907

Re: Bonds vs. Bond Fund?

Bond Funds are the right choice for individual retirement investing. Period. This is an overly dogmatic view. Many of us use or have used individual bonds as well as bond funds. Direct CDs also often are a superior choice, due to the high yield premiums over Treasuries of the same maturity--sometim...
by jdilla1107
Wed Dec 04, 2019 9:42 pm
Forum: Investing - Theory, News & General
Topic: Bonds vs. Bond Fund?
Replies: 51
Views: 3907

Re: Bonds vs. Bond Fund?

Everyone that I have ever encountered that recommends individual bonds over funds is either completely ignorant on the issue or is tricking themselves with the "money illusion". Bond Funds are the right choice for individual retirement investing. Period. The money illusion with bonds is that "gettin...
by jdilla1107
Wed Dec 04, 2019 12:31 pm
Forum: Investing - Theory, News & General
Topic: Rotate purchases of tax loss harvesting partners?
Replies: 17
Views: 1150

Re: Rotate purchases of tax loss harvesting partners?

I think the previous commenters may be missing the concern being raised. Consider this case: Monday: Regular Monthly Purchases of VWO and SCHE happens. Wednesday: Desire to tax loss harvest position in VWO. Sell some VWO and buy some SCHE. This is a wash sale on VWO against Monday's purchase. The so...
by jdilla1107
Thu Nov 28, 2019 9:28 am
Forum: Investing - Theory, News & General
Topic: That's enough for me in 2019
Replies: 906
Views: 125284

Re: That's enough for me in 2019

It's interesting how the OP almost perfectly mistimed a huge run up in bonds. When this was written, who would have guessed that intermediate bonds would go up ~12% less than a year later?
by jdilla1107
Mon Nov 11, 2019 7:37 pm
Forum: Investing - Theory, News & General
Topic: Index Funds Bubble? [Michael Burry article]
Replies: 254
Views: 34087

Re: Index Funds Bubble? [Michael Burry article]

https://www.youtube.com/watch?v=Ih7bWOSwECU This interview with Steven Bregman popped up on my Youtube list this week, and it seems like it fills out more of the background behind Burry's claim. One interesting takeaway for me is that index weighting isn't as straightforward as I previously believe...
by jdilla1107
Fri Nov 08, 2019 8:31 pm
Forum: Investing - Theory, News & General
Topic: Calls and Cash: talk me out of it
Replies: 23
Views: 4176

Re: Calls and Cash: talk me out of it

Thus the true maximum loss is the time decay of the call options, which is about -10%/2.2 years = -4.5% per year, plus interest of maybe 1.7% of the portfolio each year. This is a huge cost. (I'm not sure you are calculating it correctly as that seems too large.) Realize that people are forecasting...
by jdilla1107
Thu Nov 07, 2019 10:56 pm
Forum: Personal Investments
Topic: taxation when rebalancing??
Replies: 19
Views: 1586

Re: taxation when rebalancing??

- Rebalance with new money to the underweight investment. - Try to rebalance in tax advantaged accounts - Don't reinvest dividends and instead rebalance with them - Don't rebalance too precisely. Allow the allocation to float a bit. (Write down how much "a bit" is so you don't cheat.) - When selling...
by jdilla1107
Fri Nov 01, 2019 11:01 pm
Forum: Investing - Theory, News & General
Topic: If Burry proves to be right wouldn't this method be a pretty easy solution to circumvent problem he is describing?
Replies: 4
Views: 1229

Re: If Burry proves to be right wouldn't this method be a pretty easy solution to circumvent problem he is describing?

Leaving aside the details of Burry's arguments, I don't get your logic (assuming you are saying that Total Stock Market indexes are immune from lack of price discovery but an S&P 500 fund is not immune). Just going with Burry's theory, that would hold true for TSM as well because without that index...
by jdilla1107
Fri Nov 01, 2019 9:37 am
Forum: Investing - Theory, News & General
Topic: If Burry proves to be right wouldn't this method be a pretty easy solution to circumvent problem he is describing?
Replies: 4
Views: 1229

Re: If Burry proves to be right wouldn't this method be a pretty easy solution to circumvent problem he is describing?

I think you have it right. I think Burry is also marketing for his own fund. There is a second order effect though. If the sp500 is actually overvalued, then it's not like you are immune to a sp500 selloff by holding TSM. This is because a big part of TSM is actually the sp500. However, you are immu...
by jdilla1107
Thu Oct 31, 2019 7:36 am
Forum: Investing - Theory, News & General
Topic: 20 yr review of Mel's Unloved Midcaps
Replies: 43
Views: 10947

Re: 20 yr review of Mel's Unloved Midcaps

I was playing around with portfolio visualizer and I find this interesting: From 1979-1999 small, mid, and large cap perform about the same. From 2004-2019 small, mid, and large cap perform about the same. From 1999-2004 midcap and small cap perform massively better than large cap. The period of ou...
by jdilla1107
Wed Oct 30, 2019 10:53 pm
Forum: Personal Finance (Not Investing)
Topic: Changing Jobs - short term COBRA, Qualifying Event?
Replies: 6
Views: 459

Re: Changing Jobs - short term COBRA, Qualifying Event?

There is a trick with cobra. You have 60 days to accept it. So, just do nothing for now and if you have some sort of medical claim, then accept the cobra later. The trick is that you get free retroactive insurance for 60 days.

Also, don't go to the dr for anything elective before Dec 1.
by jdilla1107
Wed Oct 30, 2019 9:24 pm
Forum: Investing - Theory, News & General
Topic: 20 yr review of Mel's Unloved Midcaps
Replies: 43
Views: 10947

Re: 20 yr review of Mel's Unloved Midcaps

From 2004-2019 small, mid, and large cap perform about the same. Huh? The S&P 400 (mid-caps) beat the S&P 500 (large-caps) by roughly 0.75% CAGR over that period, and the S&P 600 (small caps) beat it by roughly 1%. What indices are you using to represent the various cap buckets? I was actually look...
by jdilla1107
Wed Oct 30, 2019 11:08 am
Forum: Investing - Theory, News & General
Topic: 20 yr review of Mel's Unloved Midcaps
Replies: 43
Views: 10947

Re: 20 yr review of Mel's Unloved Midcaps

I was playing around with portfolio visualizer and I find this interesting: From 1979-1999 small, mid, and large cap perform about the same. From 2004-2019 small, mid, and large cap perform about the same. From 1999-2004 midcap and small cap perform massively better than large cap. The period of out...
by jdilla1107
Sat Oct 26, 2019 8:40 pm
Forum: Investing - Theory, News & General
Topic: Hidden liquidity risk with I-bonds
Replies: 43
Views: 4943

Re: Hidden liquidity risk with I-bonds

"For example, if an investor was to sell to another collector, they might get full value if they wait for the right buyer. However, the item could be sold at a discount to its value if done through a dealer or broker if cash was needed." When people talk about liquidity without price, they are just...
by jdilla1107
Sat Oct 26, 2019 12:25 pm
Forum: Investing - Theory, News & General
Topic: Hidden liquidity risk with I-bonds
Replies: 43
Views: 4943

Re: Hidden liquidity risk with I-bonds

The definition of liquidity is pretty simple: Financial liquidity refers to how easily assets can be converted into cash. That is it. This is not correct. Price definitely plays a role in the definition. From wikipedia: https://en.wikipedia.org/wiki/Market_liquidity In business, economics or invest...
by jdilla1107
Sat Oct 26, 2019 11:43 am
Forum: Investing - Theory, News & General
Topic: Hidden liquidity risk with I-bonds
Replies: 43
Views: 4943

Re: Hidden liquidity risk with I-bonds

The definition of liquidity is pretty simple: Financial liquidity refers to how easily assets can be converted into cash. That is it. This is not correct. Price definitely plays a role in the definition. From wikipedia: https://en.wikipedia.org/wiki/Market_liquidity In business, economics or invest...
by jdilla1107
Sat Oct 26, 2019 7:59 am
Forum: Investing - Theory, News & General
Topic: [Paul Merriman: This strategy beats a total stock market fund]
Replies: 173
Views: 16418

Re: Investing in the largest 10 companies?

To me that's A LOT for an ideosyncratic risk. Even 2.5% of portfolio loss due to fraud seems really high to me so I don't skimp on my international allocation either. That would be a 50 thousand loss on a 1MM portfolio for purely fraudulent behavior. Man I'd be pissed if someone stole a hundred buc...
by jdilla1107
Sat Oct 26, 2019 7:59 am
Forum: Investing - Theory, News & General
Topic: [Paul Merriman: This strategy beats a total stock market fund]
Replies: 173
Views: 16418

Re: Investing in the largest 10 companies?

To me that's A LOT for an ideosyncratic risk. Even 2.5% of portfolio loss due to fraud seems really high to me so I don't skimp on my international allocation either. That would be a 50 thousand loss on a 1MM portfolio for purely fraudulent behavior. Man I'd be pissed if someone stole a hundred buc...
by jdilla1107
Fri Oct 25, 2019 2:12 pm
Forum: Investing - Theory, News & General
Topic: [Paul Merriman: This strategy beats a total stock market fund]
Replies: 173
Views: 16418

Re: Investing in the largest 10 companies?

To me that's A LOT for an ideosyncratic risk. Even 2.5% of portfolio loss due to fraud seems really high to me so I don't skimp on my international allocation either. That would be a 50 thousand loss on a 1MM portfolio for purely fraudulent behavior. Man I'd be pissed if someone stole a hundred buc...
by jdilla1107
Fri Oct 25, 2019 12:59 pm
Forum: Investing - Theory, News & General
Topic: [Paul Merriman: This strategy beats a total stock market fund]
Replies: 173
Views: 16418

Re: Investing in the largest 10 companies?

So, If Microsoft announced they were breaking into separate companies: - Home Entertainment - Windows - Business Solutions - Cloud Computing - Mobile and embedded devices - A huge consulting organization You would think to yourself, 'That's a lot more diversified now"? That makes no sense. Huh? It ...
by jdilla1107
Thu Oct 24, 2019 6:26 pm
Forum: Investing - Theory, News & General
Topic: Public markets too efficient to produce alpha
Replies: 7
Views: 762

Re: Public markets too efficient to produce alpha

I suspect that private equity will hit the same rock wall in producing consistent alpha that active management has. I think differently. I think there are two types of "active" investors in the world: - Those who sort through publicly available information and hit the wall you are referring to. - T...
by jdilla1107
Thu Oct 24, 2019 6:06 pm
Forum: Investing - Theory, News & General
Topic: [Paul Merriman: This strategy beats a total stock market fund]
Replies: 173
Views: 16418

Re: Investing in the largest 10 companies?

With maybe a touch of cognitive dissonance thrown in for good measure ... Would you feel better if each of these 10 companies decided to break into 10-20 companies each? Would that remove the risk you are concerned with? Do you realize that big companies actually operate this way? Microsoft has 100...
by jdilla1107
Thu Oct 24, 2019 4:41 pm
Forum: Investing - Theory, News & General
Topic: [Paul Merriman: This strategy beats a total stock market fund]
Replies: 173
Views: 16418

Re: Investing in the largest 10 companies?

I find it interesting to hear some opine about TSM being 'maximally diversified' on one hand while they also seem to relish the idea of 20% of their U.S. stock being in ten companies. It seems to be a very clear example of very strong confirmation bias. With maybe a touch of cognitive dissonance th...
by jdilla1107
Thu Oct 24, 2019 4:13 pm
Forum: Investing - Theory, News & General
Topic: [Paul Merriman: This strategy beats a total stock market fund]
Replies: 173
Views: 16418

Re: Investing in the largest 10 companies?

I find it interesting to hear some opine about TSM being 'maximally diversified' on one hand while they also seem to relish the idea of 20% of their U.S. stock being in ten companies. It seems to be a very clear example of very strong confirmation bias. With maybe a touch of cognitive dissonance th...
by jdilla1107
Thu Oct 24, 2019 8:57 am
Forum: Personal Finance (Not Investing)
Topic: Auto Collision Insurance
Replies: 3
Views: 277

Auto Collision Insurance

I have been driving for 25 years and never had a claim on my auto insurance. I always carried a $1,000 collision deductible. I recently hit a pole with my brand new car, took it to a good body shop, and it cost $5k to fix. (No other car was involved) Insurance paid $4k. I then lost all my good drive...
by jdilla1107
Thu Oct 24, 2019 8:15 am
Forum: Investing - Theory, News & General
Topic: Why would someone buy a currency pair future when they could just buy the currency pair directlly?
Replies: 9
Views: 1155

Re: Why would someone buy a currency pair future when they could just buy the currency pair directlly?

For large investors, there are some other operational differences like Futures have no counter party risk. Spot usually does. Really? It seems like it'd be the opposite. If I buy GBP/USD then I'm pretty much selling my USD for GBP right now , correct? Whereas with futures I'm making a future agreem...
by jdilla1107
Wed Oct 23, 2019 2:07 pm
Forum: Investing - Theory, News & General
Topic: Why would someone buy a currency pair future when they could just buy the currency pair directlly?
Replies: 9
Views: 1155

Re: Why would someone buy a currency pair future when they could just buy the currency pair directlly?

The main difference is that futures have built in leverage that is easy to access.

For large investors, there are some other operational differences like Futures have no counter party risk. Spot usually does.
by jdilla1107
Tue Oct 22, 2019 11:24 am
Forum: Investing - Theory, News & General
Topic: Hidden liquidity risk with I-bonds
Replies: 43
Views: 4943

Re: Hidden liquidity risk with I-bonds

I’m referring to portfolio liquidity not whether you theoretically can liquidate. An asset has low liquidity in a portfolio if it is financially unattractive to liquidate it. I don't think that's what liquidity means, and I think using it that way is going to lead to nothing but confusion. It's rea...
by jdilla1107
Tue Oct 22, 2019 11:16 am
Forum: Investing - Theory, News & General
Topic: Hidden liquidity risk with I-bonds
Replies: 43
Views: 4943

Re: Hidden liquidity risk with I-bonds

Savings bonds and CDs are poor instruments to rebalance with. In my opinion, they should never compromise 100% of a fixed income portfolio. They should be used as a as a portion of the bond portfolio that you would never (within reason) need to rebalance with. It's not a "liquidity problem" it's a "...
by jdilla1107
Sat Oct 19, 2019 7:15 pm
Forum: Personal Finance (Not Investing)
Topic: Has anyone used MySolo401k.com, DiscountSolo401k.com, or Solo401k.com?
Replies: 147
Views: 11515

Re: Has anyone used MySolo401k.com, DiscountSolo401k.com, or Solo401k.com?

So what's the benefit of using one of these websites over using etrade? What extra features are you buying that one of the free accounts won't get you? The ability to do after tax contributions. As an example, if a sole proprietor qualifies for trump's 199A deduction, they will get 20% tax deductio...
by jdilla1107
Sat Oct 19, 2019 12:39 pm
Forum: Personal Finance (Not Investing)
Topic: Has anyone used MySolo401k.com, DiscountSolo401k.com, or Solo401k.com?
Replies: 147
Views: 11515

Re: Has anyone used MySolo401k.com, DiscountSolo401k.com, or Solo401k.com?

So what's the benefit of using one of these websites over using etrade? What extra features are you buying that one of the free accounts won't get you? The ability to do after tax contributions. As an example, if a sole proprietor qualifies for trump's 199A deduction, they will get 20% tax deductio...
by jdilla1107
Sun Oct 13, 2019 7:50 pm
Forum: Personal Finance (Not Investing)
Topic: Creating a Business to get Small Business Healthcare
Replies: 3
Views: 518

Re: Creating a Business to get Small Business Healthcare

A few thoughts from my experience: - You need to have at least one employee who is not your spouse. Otherwise you are a sole proprietor and on the individual exchange. I believe it has to be a W2 employee who you offer benefits to. (I know people who employ their college age children in their consul...
by jdilla1107
Fri Oct 04, 2019 3:38 pm
Forum: Personal Finance (Not Investing)
Topic: The Quandary of Tax Advice?
Replies: 8
Views: 1021

Re: The Quandary of Tax Advice?

My experience is that CPAs aren't very helpful with this. They are helpful with taxation management of complex businesses. I have spoken to several CPAs who come up with ideas not nearly as good as can be found on this forum. For ACA subsidies, I would recommend just playing around with tax software...
by jdilla1107
Fri Oct 04, 2019 10:48 am
Forum: Investing - Theory, News & General
Topic: 'Stay the course' with international stock but give up on value?
Replies: 101
Views: 7544

Re: 'Stay the course' with international stock but give up on value?

Just relying on the S&P 500 alone for US stocks is a horrible strategy as we saw in the Dotcom bust. Small Value was underweight technology going into the dotcom bust. Maybe this was predictive. Maybe it was an accident. But, were you really more diversified by being underweight technology in one o...