Search found 250 matches

by JimmyJammy
Thu Jun 18, 2020 1:47 pm
Forum: Investing - Theory, News & General
Topic: Figuring out your Asset Allocation
Replies: 28
Views: 2279

Re: Figuring out your Asset Allocation

How have you gone about determining your AA? It does not need to be this hard. What is your current stock to bond ratio? What do you think would be more comfortable? Currently, I'm 80% Stock, 13% Bond, and 7% Cash (money market). So, 80/20. I think I'm going to be more comfortable with 70/30. Other...
by JimmyJammy
Thu Jun 18, 2020 10:47 am
Forum: Investing - Theory, News & General
Topic: Figuring out your Asset Allocation
Replies: 28
Views: 2279

Re: Figuring out your Asset Allocation

Tyler9000 wrote: Thu Jun 18, 2020 10:09 am
JimmyJammy wrote: Wed Jun 17, 2020 9:20 pm How have you gone about determining your AA?
Personally I'm big on using data to make informed decisions, so I made a bunch of spreadsheets to evaluate different asset allocation options. I share them here if you're interested: https://portfoliocharts.com/

I'm curious!
by JimmyJammy
Thu Jun 18, 2020 9:52 am
Forum: Investing - Theory, News & General
Topic: Figuring out your Asset Allocation
Replies: 28
Views: 2279

Re: Figuring out your Asset Allocation

OP, It is very simple. E = your annual retirement/FI expense. Pick your targeted number. A) Example 1 Let's assume that it is 25xE = 25E. And, you want 10 years of expenses in FI. 10E/25E = 40%. Hence, your retirement AA = 60/40. B) Example 2 Let's assume that you want to FI at 40E and you want 20 ...
by JimmyJammy
Wed Jun 17, 2020 9:20 pm
Forum: Investing - Theory, News & General
Topic: Figuring out your Asset Allocation
Replies: 28
Views: 2279

Figuring out your Asset Allocation

I was looking around for tips on setting one's asset allocation because I have recently started to think about retiring a little earlier than originally planned (plus I was laid off from my job). So, I think I'm going to reduce the risk in my portfolio. But for anyone wrestling with this question, I...
by JimmyJammy
Tue Jun 16, 2020 2:43 pm
Forum: Personal Investments
Topic: Bonds for short-term safety & bonds for longterm
Replies: 10
Views: 865

Re: Bonds for short-term safety & bonds for longterm

Thanks! Am I misreading the fund stats? On Yahoo finance it says the Yield on SHY is 1.85%. That does seem crazy high. On Bloomberg it says the gross dividend yield is .97% On Fidelity it says the annualized dividend yield is 1.78% On Market Watch it says the dividend yield in 1.74% I’m confused.
by JimmyJammy
Tue Jun 16, 2020 1:52 pm
Forum: Personal Investments
Topic: Bonds for short-term safety & bonds for longterm
Replies: 10
Views: 865

Bonds for short-term safety & bonds for longterm

I’ve trying to decide on which bond funds to get to fulfill the following two needs: 1) Low risk fund for taxable account that is a good alternative to just plain cash.Similar to emergency fund but higher risk is ok. My default for this has been SHY (short term treasuries) or Vanguard’s muni money m...
by JimmyJammy
Tue Jun 16, 2020 1:15 pm
Forum: Personal Investments
Topic: About to do my first Backdoor Roth - nervous!
Replies: 26
Views: 1428

Re: About to do my first Backdoor Roth - nervous!

Yes I meant traditional IRA :)

Alright I’ll attempt two drafts of the form.
by JimmyJammy
Tue Jun 16, 2020 11:50 am
Forum: Personal Investments
Topic: About to do my first Backdoor Roth - nervous!
Replies: 26
Views: 1428

Re: About to do my first Backdoor Roth - nervous!

I just made my 2019 $6000 contribution to my Trad Roth!

Now the question is when to convert it. tomorrow? next week?

It's in the Fed settlement fund.
by JimmyJammy
Tue Jun 16, 2020 10:45 am
Forum: Investing - Theory, News & General
Topic: Small Cap Value heads Rejoice !!!
Replies: 3650
Views: 276661

Re: Small Cap Value heads Rejoice !!!

Glad I added to my small cap holdings on the dip!
by JimmyJammy
Tue Jun 16, 2020 10:43 am
Forum: Investing - Theory, News & General
Topic: Is it time to move on from long-term treasuries?
Replies: 11
Views: 995

Re: Is it time to move on from long-term treasuries?

How about longterm muni funds like VNYTX?
by JimmyJammy
Tue Jun 16, 2020 10:10 am
Forum: Personal Investments
Topic: At what tax bracket should I care about BND vs Muni bonds in a taxable account?
Replies: 15
Views: 1668

Re: At what tax bracket should I care about BND vs Muni bonds in a taxable account?

For bonds in my taxable account, I've generally steered towards municipal bonds (VNYTX for long - I'm in NY) and MUB for national intermediate, mainly because I wanted to reduce taxes. But, given that bond yields are so low, I'm wondering if it's worth fretting over and if going into BND (VBTLX) is...
by JimmyJammy
Tue Jun 16, 2020 9:24 am
Forum: Personal Investments
Topic: At what tax bracket should I care about BND vs Muni bonds in a taxable account?
Replies: 15
Views: 1668

Re: At what tax bracket should I care about BND vs Muni bonds in a taxable account?

According to the calculator, the MUB yield of 2.35% is equivalent to a 3.31% taxable rate (for my tax bracket as a NY resident). The VNYTX yield of 2.86% is equivalent to a taxable 4.028% rate. It does seem like a risky space - these munis - in light of the Covid crisis fall-out. We even have at lea...
by JimmyJammy
Mon Jun 15, 2020 4:07 pm
Forum: Personal Investments
Topic: At what tax bracket should I care about BND vs Muni bonds in a taxable account?
Replies: 15
Views: 1668

Re: At what tax bracket should I care about BND vs Muni bonds in a taxable account?

anon_investor wrote: Mon Jun 15, 2020 3:54 pm You should know that the market is pricing muni bonds as much riskier than total bond (BND) since their yields are higher than total bond even before the tax advantages. So factoring the credit risk when making your decision (BND is almost 70% credit risk free US Government Bonds).
Good point!
by JimmyJammy
Mon Jun 15, 2020 4:06 pm
Forum: Personal Investments
Topic: At what tax bracket should I care about BND vs Muni bonds in a taxable account?
Replies: 15
Views: 1668

Re: At what tax bracket should I care about BND vs Muni bonds in a taxable account?

For bonds in my taxable account, I've generally steered towards municipal bonds (VNYTX for long - I'm in NY) and MUB for national intermediate, mainly because I wanted to reduce taxes. But, given that bond yields are so low, I'm wondering if it's worth fretting over and if going into BND (VBTLX) is...
by JimmyJammy
Mon Jun 15, 2020 3:38 pm
Forum: Personal Investments
Topic: At what tax bracket should I care about BND vs Muni bonds in a taxable account?
Replies: 15
Views: 1668

At what tax bracket should I care about BND vs Muni bonds in a taxable account?

For bonds in my taxable account, I've generally steered towards municipal bonds (VNYTX for long - I'm in NY) and MUB for national intermediate, mainly because I wanted to reduce taxes. But, given that bond yields are so low, I'm wondering if it's worth fretting over and if going into BND (VBTLX) is ...
by JimmyJammy
Mon Jun 15, 2020 3:24 pm
Forum: Personal Investments
Topic: About to do my first Backdoor Roth - nervous!
Replies: 26
Views: 1428

Re: About to do my first Backdoor Roth - nervous!

HomeStretch wrote: Mon Jun 15, 2020 12:03 pm You posted you do not have a Traditional (pretax) IRA. Do you have a SEP-IRA or a SIMPLE IRA balance?
No, I only have a solo 401(k), a work 401(k) and a Roth IRA.
by JimmyJammy
Mon Jun 15, 2020 11:56 am
Forum: Personal Investments
Topic: About to do my first Backdoor Roth - nervous!
Replies: 26
Views: 1428

Re: About to do my first Backdoor Roth - nervous!

Here's another article that says we have until July 15th to make IRA contributions for 2019: Deadline for Making 2019 IRA Contributions (both Roth and Traditional) Extended to July 15, 2020 https://www.mysolo401k.net/deadline-for-making-2019-ira-contributions-both-roth-and-traditional-extended-to-ju...
by JimmyJammy
Mon Jun 15, 2020 11:49 am
Forum: Personal Investments
Topic: About to do my first Backdoor Roth - nervous!
Replies: 26
Views: 1428

Re: About to do my first Backdoor Roth - nervous!

Regarding 2019: I was going by this article: https://www.investmentnews.com/delay-in-2019-tax-filing-date-means-deadline-for-2019-ira-contributions-also-extended-190342 "Now that Treasury Secretary Steven Mnuchin has extended the 2019 tax filing date to July 15, the deadline for making a 2019 c...
by JimmyJammy
Mon Jun 15, 2020 11:41 am
Forum: Personal Investments
Topic: About to do my first Backdoor Roth - nervous!
Replies: 26
Views: 1428

About to do my first Backdoor Roth - nervous!

Hi, I think I'm about to do my first Backdoor Roth. I'm a bit nervous because I'm afraid I'm going to miss a "gotcha". I'm in New York and 44 and I have NO traditional IRAs. I have two 401(k)s and one Roth IRA. So, I should be able to do this without much or any tax, right? My wife has som...
by JimmyJammy
Sun Jun 14, 2020 9:58 pm
Forum: Investing - Theory, News & General
Topic: Comparison of 5 Bond Portfolios amid Coronavirus
Replies: 15
Views: 1238

Re: Comparison of 5 Bond Portfolios amid Coronavirus

What happened to international bonds?

Vanguard recommends them, anyway.

For example, in their 2030 target fund, they have 9% in International Bonds.

Is anyone following their example?

(I'm not).
by JimmyJammy
Sun Jun 14, 2020 8:32 am
Forum: Investing - Theory, News & General
Topic: Any reason for 5% cash in a long-term portfolio?
Replies: 58
Views: 5161

Re: Any reason for 5% cash in a long-term portfolio?

Most of my “cash” is in a Vanguard Money Market fund or a Muni Market Fund. I also have a bunch of money in SHY (short term treasuries) - VCSH seems like a better deal). Am I wrong to count those investments as bonds? I currently have enough “cash” for 2 years of living expenses. (I am recently unem...
by JimmyJammy
Wed Jun 10, 2020 3:13 pm
Forum: Investing - Theory, News & General
Topic: Small Cap Value heads Rejoice !!!
Replies: 3650
Views: 276661

Re: Small Cap Value heads Rejoice !!!

A guy on Twitter, Eric Nelson, just posted the following regarding SCV: % annualized over/underperformance for DFA US Small Value Index vs. CRSP 1-10 Total Mkt Index: 1975-83: +19.2% 1984-90: -6.3% 1991-94: +13.3% 1995-99: -9.0% 2000-06: +19.7% 2007-08: -7.1% 2009-13: +6.1% 2014-20: -9.0% A short-te...
by JimmyJammy
Wed Jun 10, 2020 3:08 pm
Forum: Investing - Theory, News & General
Topic: Small Cap Value heads Rejoice !!!
Replies: 3650
Views: 276661

Re: Small Cap Value heads Rejoice !!!

Ugh. It's been a bloody couple of days for Small Cap Value. Can we start going up again tomorrow? :)
by JimmyJammy
Mon Jun 08, 2020 10:42 pm
Forum: Investing - Theory, News & General
Topic: Are any market timers cashing out soon?
Replies: 74
Views: 8176

Re: Are any market timers cashing out soon?

80% of my attempts at market timing have failed to produce a better return than if I had held steady.
by JimmyJammy
Mon Jun 08, 2020 10:32 pm
Forum: Investing - Theory, News & General
Topic: Dave Ramsey mentioned bogleheads today
Replies: 142
Views: 10333

Re: Dave Ramsey mentioned bogleheads today

I know a few people who structure their financial life around Dave Ramsey's advice / coaching.

Apparently, he tells everyone to a expect a 12% annual return on the stock market:

https://investorjunkie.com/investing/da ... nt-return/
by JimmyJammy
Sat Jun 06, 2020 12:11 pm
Forum: Investing - Theory, News & General
Topic: Small Cap Value heads Rejoice !!!
Replies: 3650
Views: 276661

Re: Small Cap Value heads Rejoice !!!

Good lord Friday was certainly a good day for Small Cap Value. And it seems there's some room to run
by JimmyJammy
Sat Jun 06, 2020 12:07 pm
Forum: Investing - Theory, News & General
Topic: Terrible time to buy bonds?
Replies: 42
Views: 4774

Re: Terrible time to buy bonds?

What I really regret is not buying up corporate bond ETFs when I heard that the Fed was buying 13 ( I think) such ETFs. For example, VCIT. Now they're beginning to look expensive. Long Term bonds look like a terrible investment in the short to intermediate term. But, they are "long term" a...
by JimmyJammy
Sat Jun 06, 2020 12:01 pm
Forum: Investing - Theory, News & General
Topic: Markets back near all time highs - how are you feeling and path forward ?
Replies: 238
Views: 21575

Re: Markets back near all time highs - how are you feeling and path forward ?

I manage my wife's portfolio in the standard Vanguard-approved Boglehead manner. So I didn't change much during March except for adding some near bottom (re-balancing). Meanwhile, in my own portfolio, I decided to be much more hands-on. I've been shorting, I've been selling and buying, I've been dea...
by JimmyJammy
Wed Jun 03, 2020 8:26 pm
Forum: Investing - Theory, News & General
Topic: Wall Street bets international stocks will top US equities in 2020 after a decade-long slump
Replies: 189
Views: 16735

Re: Wall Street bets international stocks will top US equities in 2020 after a decade-long slump

And the related question is how much one should have in international bonds. If you are retiring in 10 years and using Vanguard's own Target Retirement 2030 fund (VTHRX) Vanguard has you in 27% International Stock and 9.5% International Bond right now. 2040? Vanguard has you in 32.83% Intl. stock an...
by JimmyJammy
Sat May 30, 2020 10:13 pm
Forum: Investing - Theory, News & General
Topic: Wall Street bets international stocks will top US equities in 2020 after a decade-long slump
Replies: 189
Views: 16735

Re: Wall Street bets international stocks will top US equities in 2020 after a decade-long slump

Well, for a change we have a prediction definite enough to call, and a time frame short enough to remember. This sounds like one of the "sure things" Larry Swedroe likes to track. Wall Street bets international stocks will top US equities in 2020 ... Several investors and strategists are ...
by JimmyJammy
Sat May 30, 2020 10:08 pm
Forum: Investing - Theory, News & General
Topic: Small Cap Value heads Rejoice !!!
Replies: 3650
Views: 276661

Re: Small Cap Value heads Rejoice !!!

I have 4% of my portfolio in SCV (vs 35% in VTI). I'm not liking it these days obviously. Meanwhile the big techs I own (MSFT, AMZN, GOOGL - 7% of my total portfolio) have simply blown everything else away performance-wise. But I just don't see those techs falling out of favor (unless the new gover...
by JimmyJammy
Sat May 30, 2020 9:25 pm
Forum: Investing - Theory, News & General
Topic: Small Cap Value heads Rejoice !!!
Replies: 3650
Views: 276661

Re: Small Cap Value heads Rejoice !!!

I have 4% of my portfolio in SCV (vs 35% in VTI). I'm not liking it these days obviously. Meanwhile the big techs I own (MSFT, AMZN, GOOGL - 7% of my total portfolio) have simply blown everything else away performance-wise. But I just don't see those techs falling out of favor (unless the new govern...
by JimmyJammy
Fri May 08, 2020 9:45 am
Forum: Investing - Theory, News & General
Topic: A bond rule of thumb better than "age in bonds"
Replies: 160
Views: 12677

Re: A bond rule of thumb better than "age in bonds"

I'm trying to figure out what bonds to own. I'm currently 15% Bond, 10% Cash at age 43. In terms of funds, a Market Watch article recommends: TLT - Long Term Treasuries SCHR - Intermediate Treasuries VCIT - Intermediate-Term Corporate Source: https://www.marketwatch.com/story/should-you-buy-bonds-wi...
by JimmyJammy
Sat Apr 18, 2020 11:35 pm
Forum: Investing - Theory, News & General
Topic: My theory about FIRE
Replies: 419
Views: 32174

Re: My theory about FIRE

For estimating how much your nest egg will grow, what are you entering for your expected rate of return?

I've been putting 6%, but I think Jack Bogle had said to expect something more like 4-5% moving forward. What do you think?
by JimmyJammy
Thu Mar 19, 2020 10:01 pm
Forum: Investing - Theory, News & General
Topic: Munis getting slaughtered!
Replies: 194
Views: 18958

Re: Munis getting slaughtered!

I dumped MUB. Still holding VNYTX

Not much of a buffer on the downside and not much reward on the upside. I'd rather use the cash to pounce on equities once we are finally carving out a bottom.
by JimmyJammy
Thu Mar 19, 2020 6:47 am
Forum: Investing - Theory, News & General
Topic: 2020 COVID Crash Lessons
Replies: 157
Views: 13599

Re: 2020 COVID Crash Lessons

A year ago I was 70 stock / 20 bond / 10% cash and I felt ok about that given my 20 year horizon. But then I got sucked into putting more of the cash into stocks as the market kept going up and up. It was a major case of FOMO. I should have been reducing risk instead, given the economic data. I thin...
by JimmyJammy
Wed Mar 18, 2020 7:13 am
Forum: Investing - Theory, News & General
Topic: Updated 3/18 - "You can't hide in bonds" article
Replies: 183
Views: 10274

Re: "You can't hide in bonds" article

At the very least I need to sell enough bonds today to rebalance. But I think I should sell most of my non-short term bonds across the board. Where is the risk reduction and where is the reward potential in bonds right now? I don’t see it. I’d rather have the cash and wait for amazing equity prices ...
by JimmyJammy
Tue Mar 17, 2020 10:48 pm
Forum: Investing - Theory, News & General
Topic: Why do you hold bonds in your portfolio?
Replies: 296
Views: 23225

Re: Why do you hold bonds in your portfolio?

I did not appreciate that my core bond fund - AGG - fell 2.59% today. Everything is selling. Isn't cash the king right now?
by JimmyJammy
Tue Mar 17, 2020 10:42 pm
Forum: Investing - Theory, News & General
Topic: Well, I am market timing due to coronavirus... Wish me luck.
Replies: 1293
Views: 123725

Re: Well, I am market timing due to coronavirus... Wish me luck.

One thing this thread has convinced me to do is read Bogleheads more often. I applaud the OP for thinking out loud. Back in early February, I just wanted taking enough time at the end of the day to sit down and think.
by JimmyJammy
Tue Mar 10, 2020 11:16 pm
Forum: Investing - Theory, News & General
Topic: Are Treasury Bonds no longer a safe haven w/ 0% interest rates
Replies: 57
Views: 4166

Re: Are Treasury Bonds no longer a safe haven w/ 0% interest rates

Well, it looks like they had someone come on to say that 30 Year Treasuries are the *only* safe haven asset right now. Ha.

https://www.bloomberg.com/news/videos/2 ... sury-video
by JimmyJammy
Tue Mar 10, 2020 7:35 am
Forum: Investing - Theory, News & General
Topic: Are Treasury Bonds no longer a safe haven w/ 0% interest rates
Replies: 57
Views: 4166

Are Treasury Bonds no longer a safe haven w/ 0% interest rates

I caught a snippet of someone on Bloomberg radio saying that Treasury Bonds will no longer be a safe haven in a Japan-style 0% interest rate environment.

Can someone explain?

And what will be the “safe haven” asset class? Other types of bonds?
by JimmyJammy
Fri Mar 06, 2020 8:07 am
Forum: Investing - Theory, News & General
Topic: Be fearful when others are greedy. Be greedy when others are fearful.
Replies: 129
Views: 9412

Re: Be fearful when others are greedy. Be greedy when others are fearful.

I started this correction at 20% bond and 10% cash.

My plan is to start buying stocks aggressively at S&P 2500 and below. I plan to be 15% bond and 5% cash when the dust clears, which should have been my AA to begin with.
by JimmyJammy
Mon Jan 20, 2020 12:05 am
Forum: Investing - Theory, News & General
Topic: Ray Dalio - Worst asset you can have is cash?
Replies: 55
Views: 7471

Re: Ray Dalio - Worst asset you can have is cash?

Just to clarify, when we're talking about "cash" are we talking about money that's at least in some sort of saving account or money market fund, such as Vanguard's Prime Money Market Fund, which currently has a 7 day SEC yield of 1.69% (basically in line with inflation)?
by JimmyJammy
Fri Sep 06, 2019 9:37 pm
Forum: Investing - Theory, News & General
Topic: I'm calling a bond bottom.
Replies: 55
Views: 13008

Re: I'm calling a bond bottom.

Bonds sure look toppy here. A week ago I sold off my EDV fund (long term treasury). What a run! But I'm holding onto my core BND fund and Muni Bond funds. Not worth timing the market that much, in terms of worry/energy. That said, I'm 15% cash in a muni money market. A good chunk of cash with a toke...
by JimmyJammy
Mon Jul 29, 2019 10:50 am
Forum: Investing - Theory, News & General
Topic: Muni bonds and a rate cut this week?
Replies: 11
Views: 2020

Re: Muni bonds and a rate cut this week?

Most of my bonds in my taxable account are munis. Should I diversify into other types of bonds in my taxable account to reduce risk?
by JimmyJammy
Mon Jul 29, 2019 9:38 am
Forum: Investing - Theory, News & General
Topic: POST YOUR QUESTIONS FOR THE EXPERTS PANEL Q&A HERE
Replies: 84
Views: 17126

Re: POST YOUR QUESTIONS FOR THE EXPERTS PANEL Q&A HERE

Isn't there a case to be made to construct a portfolio that has a higher yield than what index funds pay? VTSAX pays only 1.84%. If I wanted an annual income of $80,000 I'd need $4.2 million in a portfolio yielding 1.9%. But you'd only need $842,105 from a portfolio yielding 9.5%. Of course, you'd n...
by JimmyJammy
Mon Jul 29, 2019 9:37 am
Forum: Investing - Theory, News & General
Topic: Why not aim for a HIGH YIELDING portfolio?
Replies: 60
Views: 5724

Why not aim for a HIGH YIELDING portfolio?

Isn't there a case to be made to construct a portfolio that has a higher yield than what index funds pay? VTSAX pays only 1.84%. If I wanted an annual income of $80,000 I'd need $4.2 million in a portfolio yielding 1.9%. But you'd only need $842,105 from a portfolio yielding 9.5%. Of course, you'd n...
by JimmyJammy
Tue Jul 23, 2019 11:44 pm
Forum: Investing - Theory, News & General
Topic: POST YOUR QUESTIONS FOR THE EXPERTS PANEL Q&A HERE
Replies: 84
Views: 17126

Re: POST YOUR QUESTIONS FOR THE EXPERTS PANEL Q&A HERE

Where and when will the Q&A be posted?
by JimmyJammy
Fri Jan 18, 2019 8:54 am
Forum: Investing - Theory, News & General
Topic: When would you stop being a Boglehead?
Replies: 95
Views: 8520

Re: When would you stop being a Boglehead?

I'm not a full Boglehead. Most of my investments are in index funds. But I'm glad I have a decent amount in T Rowe Price managed funds. For example, 5% of my money is in PRHSX (Health Sciences). The fund separated from VTSAX around year 2000 and hasn't looked back. It has absolutely trounced VTSAX/V...