The fees and commissions depend on your broker and your choice of ETFs and mutual funds. I'm gonna tell it to you straight: Nowadays you should not pay any fees and commissions to buy/sell either mutual fund shares or ETF shares.
If you are paying any commissions, you should switch brokers. Many brokers will also pay you cash to switch. The last time we switched, the broker paid us $1,000.
Search found 85496 matches
- Fri Jul 19, 2013 4:45 pm
- Forum: Investing - Theory, News & General
- Topic: Selling Mutual Funds & ETFs
- Replies: 6
- Views: 937
- Fri Jul 19, 2013 4:42 pm
- Forum: Investing - Theory, News & General
- Topic: How and when did you do it - to get to 1 Million
- Replies: 129
- Views: 31289
Re: How and when did you do it - to get to 1 Million
I didn't get a real job until I was 28 years old. I decided that I wanted to reach a number by age 40, but that number was not a million. I was married and we basically just saved/invested the entire salary of the higher paid spouse while paying living expenses and taxes with the lower paid spouse's salary. As for reaching a million, that happened about 15 years after starting the plan. We were living near NYC at the time, so the cost of living was higher back then for us than it is now. In particular, rent was the most I have ever paid in the past 28 years and so were state income taxes. So some takeaway lessons: 1. You don't have to earn 6-figure salaries. 2. You don't have to start before age 28. 3. You don't have to live in a low cost o...
- Fri Jul 19, 2013 12:15 pm
- Forum: Personal Investments
- Topic: Reinvest dividends? Tax consequences?
- Replies: 7
- Views: 1267
Re: Reinvest dividends? Tax consequences?
Here are a couple of old fun threads on the subject: http://www.bogleheads.org/forum/viewtopic.php?p=630563#p630563 I think we now have the answer: 1) If you can't add and lose things regularly, take your dividends in cash and spend the money immediately. 2) If you can add $300 + $300 and 100 + 100, but not $53.21 + $69.47 and 2.467 + 3.167, and you can keep records, take your dividends in cash and spend the money immediately, but set aside $300 a month into a checking account or money fund and wait until you have enough to buy 100 shares of an ETF. Take any money left over in your money fund and spend it immediately. 3) If you can add $300 + $300 and 2.467 + 3.167 but not $53.21 + $69.47, and you can keep records, take your dividends in ca...
- Fri Jul 19, 2013 11:56 am
- Forum: Investing - Theory, News & General
- Topic: Soliciting Boglehead opinions on this paper
- Replies: 12
- Views: 1624
Re: Soliciting Boglehead opinions on this paper
You don't play the bucket game because it is mental accounting. If stocks drop at the beginning of the period, the normal course of rebalancing would not have one selling stocks to pay expenses. Instead one would be rebalancing into equities by exchanging bond funds into stock funds. I'm not sure the folks who bucket would be able to buy equity funds in that situation, but I firmly believe they need to be doing that. And to pay expenses one would be withdrawing from the portfolio in a way that would maintain one's desired asset allocation. Hint: One would not be selling equities for that either if equities dropped. Thus the whole idea of having to sell stocks when stocks drop is bogus as long as one has some bond funds in their asset alloca...
- Fri Jul 19, 2013 10:05 am
- Forum: Personal Finance (Not Investing)
- Topic: Large Bid/Ask Spread on VSS after 10am
- Replies: 9
- Views: 1505
Re: Large Bid/Ask Spread on VSS after 10am
The VSS bid/ask spread does not seem unusual at the moment. There has almost never been any real depth to the order book as well, so when the highest bid is used up, the next highest is a ways away.
Do you see that computer program working hard in the plot above? Oscillating the bid just like playing with a fish lure to get a strike.
Do you see that computer program working hard in the plot above? Oscillating the bid just like playing with a fish lure to get a strike.
- Fri Jul 19, 2013 9:43 am
- Forum: Investing - Theory, News & General
- Topic: Soliciting Boglehead opinions on this paper
- Replies: 12
- Views: 1624
Re: SOLICITING Boglehead opinions on this paper
I didn't bother to read the link because of 2 things: 1. If one spends down the investment class that had the lowest expected returns first, that leaves the investment classes with the highest expected returns to try to get those higher expected returns. Duh! All studies show that equities perform better than bonds over the long term. I think that might be labelled "equity risk premium". 2. I hate buckets because that's all mental accounting and doesn't mean anything. For myself, I've come to the conclusion (but haven't bothered to write a fancy treatise on it), that in retirement I will just have an asset allocation and will maintain that asset allocation by rebalancing methods. That will keep my risk level where I want it withou...
- Thu Jul 18, 2013 1:19 pm
- Forum: Personal Investments
- Topic: Investing into Vanguard brokerage account
- Replies: 7
- Views: 1369
Re: Investing into Vanguard brokerage account
That fund is NOT just for retirement accounts. Lots of folks use mutual funds in a so-called taxable account for many different goals and purposes. Vanguard has lots of funds to choose from.
- Thu Jul 18, 2013 12:46 pm
- Forum: Personal Consumer Issues
- Topic: How many fundraisers are your kids ask to participate in?
- Replies: 12
- Views: 1153
Re: How many fundraisers are your kids ask to participate in
My kids have done their share of fundraisers.
They have learned quite a number of useful skills that translate into future successes. Everybody is always selling something so they have learned to be unafraid in selling to adults who say no often. They have honed their pitches and stories.
A parent buyout takes away a lesson in real life.
They have learned quite a number of useful skills that translate into future successes. Everybody is always selling something so they have learned to be unafraid in selling to adults who say no often. They have honed their pitches and stories.
A parent buyout takes away a lesson in real life.
- Thu Jul 18, 2013 7:17 am
- Forum: Investing - Theory, News & General
- Topic: Is There Hope?
- Replies: 37
- Views: 4392
Re: Is There Hope?
I have always advocated saving half of one's income. This is not as hard as some folks think... Especially if one is married and one's spouse also works.Alistair wrote:In what pleasant world do 21-32 year olds have $18,000 a year to place in retirement plans..?livesoft wrote:...Someone who started at age 21 in 2002 could have probably contributed $200,000 to retirement plans in the past 11 years....
- Wed Jul 17, 2013 10:27 pm
- Forum: Investing - Theory, News & General
- Topic: Is There Hope?
- Replies: 37
- Views: 4392
Re: Is There Hope?
The OP should have noticed that their retirement accounts have increased substantially in dollar amount. Someone who started at age 21 in 2002 could have probably contributed $200,000 to retirement plans in the past 11 years. It is not as if they contributed once in 2002 and find themselves with little to show for it in 2013.
- Wed Jul 17, 2013 7:49 pm
- Forum: Personal Finance (Not Investing)
- Topic: International Banking for Dummies (me) [US expat in Germany]
- Replies: 14
- Views: 2560
Re: International Banking for Dummies (me) [US expat in Germ
I don't see what the big deal is. If you are using WellsFargo, then your college student is also using WF since everything is free to everybody. You just online transfer the allowance to the student monthly or whenever. That is, the internet works in Germany, too. In other words, do not give up your US bank accounts just because you go to Germany. Also $500 a month is just $6,000 a year. You could just write a check for that amount, too, if you told student that they needed to budget. Or leave $6,000 in your WF checking account for the next year. When I lived in Europe, things were not as sophisticated as they are nowadays, but I don't recall any special international banking issues. I just wrote checks. My European bank accepted US checks ...
- Wed Jul 17, 2013 7:42 pm
- Forum: Personal Investments
- Topic: Vanguard Total Bond Market Fund, Roth IRA & TD Ameritrade
- Replies: 2
- Views: 562
Re: Vanguard Total Bond Market Fund, Roth IRA & TD Ameritrad
I would not pay transaction fees or commissions at TDAmeritrade. That doesn't make sense.
We have lots of money at TDAmeritrade since 1994, but use ETFs which are perfectly fine and have no commissions nowadays.
If I owned the mutual fund, I would not pay a fee to sell it at TDAmeritrade, but would transfer in-kind to Vanguard where transactions would be free.
If I insisted on using TDAmeritrade (I like them), I would start using the ETF shares and would not do anything with my mutual fund shares except to transfer them to a place where I did not have to pay to sell them. That is, I would not be buying more mutual fund shares at TDAmeritrade.
We have lots of money at TDAmeritrade since 1994, but use ETFs which are perfectly fine and have no commissions nowadays.
If I owned the mutual fund, I would not pay a fee to sell it at TDAmeritrade, but would transfer in-kind to Vanguard where transactions would be free.
If I insisted on using TDAmeritrade (I like them), I would start using the ETF shares and would not do anything with my mutual fund shares except to transfer them to a place where I did not have to pay to sell them. That is, I would not be buying more mutual fund shares at TDAmeritrade.
- Wed Jul 17, 2013 11:53 am
- Forum: Investing - Theory, News & General
- Topic: Asset Allocation clarification
- Replies: 29
- Views: 2998
Re: Asset Allocation clarification
But I've already made millions in the stock market, so I don't need to write that pesky book either.
- Tue Jul 16, 2013 8:37 pm
- Forum: Personal Investments
- Topic: Never time the market, i know...
- Replies: 48
- Views: 7321
Re: Never time the market, i know...
I almost always note the signals because folks ask all the time. I even noted when I bought in June right here on the forum (I gave a link in this thread).
There is no signal at the present time, so no advice from me right now.
There is no signal at the present time, so no advice from me right now.
- Tue Jul 16, 2013 7:29 pm
- Forum: Investing - Theory, News & General
- Topic: Thank you for saving me once again
- Replies: 11
- Views: 3649
Re: Thank you for saving me once again
Who to believe? Warren Buffett or Jack Bogle or someone else?
- Tue Jul 16, 2013 7:11 pm
- Forum: Personal Consumer Issues
- Topic: Math degrees
- Replies: 70
- Views: 7878
Re: Math degrees
A sibling of mine went back to school after being unemployed living the soft life for more than 20 years to get a PhD in Mathematics. The sibling now teaches Mathematics at a college and has summers off.
So despite the 'what else besides teaching', one can even teach.
So despite the 'what else besides teaching', one can even teach.
- Tue Jul 16, 2013 5:07 pm
- Forum: Investing - Theory, News & General
- Topic: buy and hold no matter what?
- Replies: 26
- Views: 3282
Re: buy and hold no matter what?
And if the market dropped 10% in one month, does that mean buy more equities? Dropped 20% in 3 months? ....
- Tue Jul 16, 2013 4:07 pm
- Forum: Personal Investments
- Topic: My dentist asked me for a hot tip
- Replies: 37
- Views: 4347
Re: My dentist asked me for a hot tip
I always answer: Index funds.
- Tue Jul 16, 2013 2:33 pm
- Forum: Investing - Theory, News & General
- Topic: Dynamic AA - does it make sense?
- Replies: 77
- Views: 7160
Re: Dynamic AA - does it make sense?
I love a certain kind of market timing. Just search the forum for "livesoft RBD" and enjoy reading all the discussions.
As for rebalancing, all the published studies don't rebalance in an optimal way, so of course they don't show that rebalancing is a big win. In contrast, I try to rebalance only at the market highs and the market lows each year. What if you rebalanced optimally? Would rebalancing then show a big win?
And finally, if someone has a great method of rebalancing optimally, are they going to tell everyone about it? Or are they going to obfuscate what they do?
As for rebalancing, all the published studies don't rebalance in an optimal way, so of course they don't show that rebalancing is a big win. In contrast, I try to rebalance only at the market highs and the market lows each year. What if you rebalanced optimally? Would rebalancing then show a big win?
And finally, if someone has a great method of rebalancing optimally, are they going to tell everyone about it? Or are they going to obfuscate what they do?
- Tue Jul 16, 2013 8:46 am
- Forum: Personal Investments
- Topic: Tax bracket / Roth TSP question
- Replies: 5
- Views: 576
Re: Tax bracket / Roth TSP question
I'd let Taxcaster do the math for me.
- Mon Jul 15, 2013 8:39 pm
- Forum: Investing - Theory, News & General
- Topic: Asset Allocation clarification
- Replies: 29
- Views: 2998
Re: Asset Allocation clarification
Perhaps you read this thread from 2011: http://www.bogleheads.org/forum/viewtop ... 0#p1027970 where RBD and IPS are mentioned.
A possible definition of an RBD was technically defined in the same thread, but I have written a computer program to tell me when an RBD has occurred. I do not distribute this program since it is worth lots of money.
A possible definition of an RBD was technically defined in the same thread, but I have written a computer program to tell me when an RBD has occurred. I do not distribute this program since it is worth lots of money.
- Mon Jul 15, 2013 8:12 pm
- Forum: Personal Investments
- Topic: I think I just won the game … have I and what do I do next?!
- Replies: 55
- Views: 10897
Re: I think I just won the game … have I and what do I do ne
At age 35 perhaps you really do not know your risk tolerance or your willingness, ability, and need to take risk in the Larry Swedroe sense. Without lots more experience you may not come to a good equilibrium on these characteristics of your psyche and portfolio.
- Mon Jul 15, 2013 8:02 pm
- Forum: Investing - Theory, News & General
- Topic: Asset Allocation clarification
- Replies: 29
- Views: 2998
Re: Asset Allocation clarification
That is basically it (though not quite), but there are no guarantees that an RBD is a positive opportunity. It does force me to purchase equities when many posters on the forum are asking "Should I sell?"gvsucavie03 wrote:I just did a search on RBD and you seem to be famous on this approach
So basically, if there's some sort of 200pt market drop like we saw a month or so ago, you say "blue light is on" and put more into equities (as long as it aligns with your IPS and keeps you within your AA range)? That seems more like taking an advantage of an opportunity rather than being reactionary and completely changing philosophy.
- Mon Jul 15, 2013 7:35 pm
- Forum: Investing - Theory, News & General
- Topic: Asset Allocation clarification
- Replies: 29
- Views: 2998
Re: Asset Allocation clarification
Many folks practice a so-called "bands" or "range" of professed Asset Allocation. For example, equities are between 55% and 65% of a portfolio with a nominal value of 60%. This would be 60% plus-or-minus 5%. Thus, there would be no need to rebalance if one had 64% equities or 55% equities or 65% equities. Then with that range of allocation, one can also decide how often they look to see if their portfolio is within range. Some folks won't look more than once a quarter or once a year while others might look daily. Looking daily might sound ridiculous, but the reality is that if you were in range yesterday, you are going to be in range today unless something dramatic happened in the stock market. Thus "looking daily&q...
- Mon Jul 15, 2013 6:55 pm
- Forum: Personal Investments
- Topic: TIAA-Traditional payout interest rate
- Replies: 4
- Views: 1024
Re: TIAA-Traditional payout interest rate
Perhaps you are confusing the rate earned on a the non-annuitized TIAA with essentially a single-premium immediate annuity (SPIA) purchased with money coming from your TIAA traditional annuity?
In the latter case of the SPIA, you will get return of principal plus if you die, then your heirs don't get the remaining amount. Right?
I have a TIAA traditional annuity from about the same time period as yours. The current rates (click on View Interest Rates near the piechart that appears when you login to your account) for me is about 4.5%.
In the latter case of the SPIA, you will get return of principal plus if you die, then your heirs don't get the remaining amount. Right?
I have a TIAA traditional annuity from about the same time period as yours. The current rates (click on View Interest Rates near the piechart that appears when you login to your account) for me is about 4.5%.
- Mon Jul 15, 2013 6:48 pm
- Forum: Personal Investments
- Topic: (Planned) AA Change consideration - return to 100% equities
- Replies: 36
- Views: 3924
Re: (Planned) AA Change consideration - return to 100% equit
How about an Asset Allocation Plan that lets you change equity:fixed ratio based on some outside factor(s)?
For example, I have an AAplan where on a RBD, I must increase my allocation to equities. This forces me to buy equities when they go down big-time.
Thus you could be 80:20 some of the time and 100:0 some of the time. Or any other ratio that you like. But the reasons have to be pretty solidly defined or you may find you get emotional about it. I suggest you avoid emotions on this.
For example, I have an AAplan where on a RBD, I must increase my allocation to equities. This forces me to buy equities when they go down big-time.
Thus you could be 80:20 some of the time and 100:0 some of the time. Or any other ratio that you like. But the reasons have to be pretty solidly defined or you may find you get emotional about it. I suggest you avoid emotions on this.
- Mon Jul 15, 2013 6:08 pm
- Forum: Personal Investments
- Topic: my tip went down 10%
- Replies: 6
- Views: 1331
Re: my tip went down 10%
You should read your Investment Policy Statement and see what it says about your Asset Allocation Plan. If with this 10% drop in your fund, you are underweight in TIPS (according to your asset allocation plan), then you should buy more. If with this 10% drop in your fund, you are overweight in TIPS, then you should sell some. Otherwise, if you are at about the weight in TIPS that you want (i.e. have already specified in your asset allocation plan), then you should do nothing.
- Mon Jul 15, 2013 4:43 pm
- Forum: Investing - Theory, News & General
- Topic: Taxes and ETFs
- Replies: 1
- Views: 302
Re: Taxes and ETFs
I think all one can do is to research the historical distributions of the ETF in question to see what to expect in the future. Even so, one has to be prepared for surprises.
In any event, ETFs pay dividends and some of them pay capital gains distributions as one can see from the historical records.
In any event, ETFs pay dividends and some of them pay capital gains distributions as one can see from the historical records.
- Sun Jul 14, 2013 11:50 pm
- Forum: Personal Investments
- Topic: When are dividends added to 401k funds? Is this disclosed?
- Replies: 8
- Views: 3731
Re: When are dividends added to 401k funds? Is this disclose
Dividends may be rolled into the price of shares without you knowing they are paid. This often happens with certain share classes (maybe that "Class IX" is a clue?) or with UITs or Collective Trusts.
I wouldn't worry about this myself, but you might wish to read the prospectus for the Class IX shares.
I wouldn't worry about this myself, but you might wish to read the prospectus for the Class IX shares.
- Sun Jul 14, 2013 10:23 pm
- Forum: Personal Consumer Issues
- Topic: Why does my lawnmower leave a stripe?
- Replies: 28
- Views: 20833
Re: Why does my lawnmower leave a stripe?
Well, I had to think of something stupidly jokingly complicated because the OP should have already figured out if it was something simple like sharpening the blade or even buying a new blade.zaplunken wrote:The answers in this thread mimic some of the convoluted and/or complex replies in so many threads here. You people think too much as in making a mountain out of a molehill!
How about a simple answer - clean and/or sharpen the blades!
Oh, if the air filter is clogged, the engine will have no horsepower which would be consistent with things slowing down since 2008.
- Sun Jul 14, 2013 10:04 pm
- Forum: Personal Investments
- Topic: Exchanging Total Internl for FTSE Total World ex US index
- Replies: 8
- Views: 824
Re: Exchanging Total Internl for FTSE Total World ex US inde
Sure, go ahead and do it. As you wrote, if you sell all shares, it doesn't matter whether you use average basis or first-in,first-out or anything else.
Oh, the Total Int'l fund is more diversified, so I don't think you got that part right.
Oh, the Total Int'l fund is more diversified, so I don't think you got that part right.
- Sun Jul 14, 2013 8:52 pm
- Forum: Personal Consumer Issues
- Topic: Removing a beehive from mailbox newspaper holder
- Replies: 43
- Views: 11345
Re: Removing a beehive from mailbox newspaper holder
I would worry about liability issues if someone putting the newspaper into the box was stung and allergic to the sting.zaplunken wrote:Are they aggressive? If not just ignore them. I have paper wasps living in the newspaper tube since spring. They are very docile, they make no attempt to bother me even when my hand is close to them getting the paper so I leave them alone. Being predators they are eating a lot of insects and that's a good thing. Now yellow jackets and bald faced hornets are dangerous to mess with especially the latter! Honeybees are valuable call a bee keeper.
- Sun Jul 14, 2013 7:22 pm
- Forum: Personal Investments
- Topic: ETFs or Mutual Funds, for someone who's starting?
- Replies: 18
- Views: 1370
Re: ETFs or Mutual Funds, for someone who's starting?
I agree, but it ain't that much more complicated that you would avoid using one because you don't know how to use it.RNJ wrote:And for the record, a fork IS more complicated than a spoon.
- Sun Jul 14, 2013 6:31 pm
- Forum: Personal Investments
- Topic: ETFs or Mutual Funds, for someone who's starting?
- Replies: 18
- Views: 1370
Re: ETFs or Mutual Funds, for someone who's starting?
Automatic reinvestment of dividends, interest, and distributed cap gains is just as easy with ETFs: One just sets that when they make their first purchase just like they have to do with mutual fund shares. In my spouse's set-and-forget IRA, she has only ETFs and has all distributions automatically reinvested.ruralavalon wrote:... because automatic reinvestment of dividends, interest, and gains is easy, which I think is important for anyone new.
Another reason to own ETFs is that they work the same at all brokerages. Perhaps one doesn't wish to use Vanguard or cannot use Vanguard as a financial institution, so in that case one can still use Vanguard ETFs at another financial institution.
- Sun Jul 14, 2013 2:39 pm
- Forum: Personal Investments
- Topic: University student needing starting advice
- Replies: 4
- Views: 560
Re: University student needing starting advice
What are your goals for this money? A bike? A car? A boat? A stereo system? Pay for your wedding? A gap-year vacation? Etc?
- Sun Jul 14, 2013 12:12 pm
- Forum: Personal Investments
- Topic: Total Bond Market Substitution
- Replies: 17
- Views: 3271
Re: Total Bond Market Substitution
A sense of our bond investments: Most in TotalBondMarket Index (FSITX) because that is what is offered in my 401(k). Some in Vanguard GNMA (VFIJX) which is an intermediate-term bond fund. Some in VCSH which is the Vanguard short-term corporate bond index fund. This is also used for short-term market timing moves into and out of equities. Some in TIAA Traditional Annuity which never drops in value and pays a nice rate. And a little pocket money in Vanguard intermediate-term bond etf BIV. Most of this was sold a few months ago in order to shorten our bond durations based on polls here at Bogleheads, but a few shares are hanging around. And finally a couple of small IRAs have the short-term bond index fund VBIRX in them. This fund has a $10,00...
- Sun Jul 14, 2013 12:05 pm
- Forum: Personal Investments
- Topic: ETFs or Mutual Funds, for someone who's starting?
- Replies: 18
- Views: 1370
Re: ETFs or Mutual Funds, for someone who's starting?
That's like say a fork is more complicated than a spoon.Boglenaut wrote:ETF's are more complicated. Especially if he can eventually get Admiral shares, I'd go with mutual funds.
- Sun Jul 14, 2013 11:50 am
- Forum: Personal Investments
- Topic: ETFs or Mutual Funds, for someone who's starting?
- Replies: 18
- Views: 1370
Re: ETFs or Mutual Funds, for someone who's starting?
Great question with no good answer. Here is a thread with a similar question from yesterday with lots of links to links to links to links to read:
http://www.bogleheads.org/forum/viewtop ... 1&t=119728
One way to decide is: Do they have enough money to invest that they can meet the initial minimum investment for all the funds they want to start with? If not, then mutual funds are not going to be possible right away. They could wait and save up though. Or they could do ETFs right away and switch to mutual funds later if they didn't like ETFs. Or they could use a target retirement fund or a life strategy fund.
Another way to decide is: If they cannot place orders while the market is open, then they should use mutual funds.
http://www.bogleheads.org/forum/viewtop ... 1&t=119728
One way to decide is: Do they have enough money to invest that they can meet the initial minimum investment for all the funds they want to start with? If not, then mutual funds are not going to be possible right away. They could wait and save up though. Or they could do ETFs right away and switch to mutual funds later if they didn't like ETFs. Or they could use a target retirement fund or a life strategy fund.
Another way to decide is: If they cannot place orders while the market is open, then they should use mutual funds.
- Sun Jul 14, 2013 11:01 am
- Forum: Investing - Theory, News & General
- Topic: Bonds/Bond Funds and Asset Allocation
- Replies: 8
- Views: 1392
Re: Bonds/Bond Funds and Asset Allocation
... Can't bring myself to sell a losing investment. On the other hand, I am having a hard time bringing myself to buy this losing investment also, with all the talk of rising interest rates. How are you approaching this issue? Thanks Loss aversion is a behavioral finance trap. Once one realizes this, then it becomes easy to sell losers or to buy more of them. I really suggest that you read and/or re-read books on behavioral finance. Perhaps the easiest one that has really hit home with me is Gilovich & Belsky "Why Smart People Make Big Money Mistakes" which is linked right there on the left panel at www.bogleheads.org Once I understood the trap of "loss aversion", I really started to be an unemotional, serious inves...
- Sun Jul 14, 2013 10:51 am
- Forum: Personal Investments
- Topic: Rebalancing questions
- Replies: 4
- Views: 547
Re: Rebalancing questions
I can see where one can have lots of flexibility on the upside.RNJ wrote:Thanks for your reply. As I was reading your response I wondered if rebalancing bands should be "wider" if sales would trigger a taxable gain.
Wow. I really have to ask why this wasn't done when VWO was lower. I know VWO was 7% lower just in late June. Why didn't you do this TLH back then and really save yourself some money? Better late than never I guess.I'm also going to do a large TLH with VWO -> IEMG this week. Thanks for the advice!
- Sun Jul 14, 2013 10:42 am
- Forum: Non-US Investing
- Topic: Investing from Singapore - Vanguard ETFs
- Replies: 2
- Views: 1177
Re: Investing from Singapore - Vanguard ETFs
If one types "singapore" in that search field up there on the right, one gets lots of results. Perhaps some of them are worthwhile reading?
- Sun Jul 14, 2013 8:02 am
- Forum: Investing - Theory, News & General
- Topic: Why do so many do the opposite of Mr. Bogle suggests?
- Replies: 76
- Views: 8299
Re: Why do so many do the opposite of Mr. Bogle suggests?
Perhaps it is because Mr Bogle is human and to err is human? We are human, too.
I have a follow up question: Why would anyone believe what Mr Bogle suggests?
I have a follow up question: Why would anyone believe what Mr Bogle suggests?
- Sun Jul 14, 2013 7:29 am
- Forum: Personal Consumer Issues
- Topic: Why does my lawnmower leave a stripe?
- Replies: 28
- Views: 20833
Re: Why does my lawnmower leave a stripe?
You are supposed to PUSH the lawnmower and not PULL it. Since it appears you are PULLING it, your footsteps are tamping down the grass which then doesn't have time to spring back up into the whirring mower blade and cut whacked off. OK, you could get the same thing if your wheel crushed the grass flat and on the next pass you lined up that crushed grass with the center of your mower.
Try this, if you keep your feet well-separated and walk with a really wide-stance, do you get two ragged wider stripes and does the middle stripe go away?
Or push your lawnmower and walk slower with a new sharpened blade.
Try this, if you keep your feet well-separated and walk with a really wide-stance, do you get two ragged wider stripes and does the middle stripe go away?
Or push your lawnmower and walk slower with a new sharpened blade.
- Sun Jul 14, 2013 7:17 am
- Forum: Personal Investments
- Topic: Hit me straight/Retire on $100k annually??
- Replies: 12
- Views: 3153
Re: Hit me straight/Retire on $100k annually??
Seems OK to me. You will probably pay no income taxes in retirement. See, for example, http://www.bogleheads.org/forum/viewtopic.php?t=87471
I would probably not have 70/30 in taxable. Instead I would have 100/0 in taxable and up the fixed income in the 401(k). The reason is that long-term cap gains can be taxed as low as 0%, so equities in taxable is something to consider.
If you look at your Form 1040 Schedule B, you should have no income on the top half and in the bottom half, you should have no ordinary dividends that are not qualified.
I would probably not have 70/30 in taxable. Instead I would have 100/0 in taxable and up the fixed income in the 401(k). The reason is that long-term cap gains can be taxed as low as 0%, so equities in taxable is something to consider.
If you look at your Form 1040 Schedule B, you should have no income on the top half and in the bottom half, you should have no ordinary dividends that are not qualified.
- Sat Jul 13, 2013 6:25 pm
- Forum: Personal Investments
- Topic: 3 fund portfolio vs more complicated allocation
- Replies: 34
- Views: 5700
Re: 3 fund portfolio vs more complicated allocation
After many years of running a small-cap- and value-tilted portfolio, I must write that Yes, small-caps and value ETFs/funds seem to be more volatile than total market index funds. By "more volatile", I mean they drop more and they pop more than the total market funds. So if the total market fund goes down by 10%, the small-cap value fund might go down by 12% to 15%. Thus, in order to take advantage of small-cap- and value-tilted portfolio, one has to have the guts to rebalance when small-cap and value ETF/funds have tanked more than the total market funds. One has to have the guts to rebalance when small-cap and value ETF/funds have popped more than the total market funds. If one is just a buy-and-hold-and-don't-look investor, the...
- Sat Jul 13, 2013 5:33 pm
- Forum: Personal Investments
- Topic: 3 years from retirement - rebalancing help needed
- Replies: 1
- Views: 525
Re: 3 years from retirement - rebalancing help needed
One can fill their IRA with CDs if they wish, so I don't understand that comment about CDs and your IRA. However, I suspect that the stable value funds will be a better deal than any CD you can purchase.
Why do you need to get your equity allocation down the 40%? I doubt you will notice any difference between your current 47% and that 40%. But if that's what you want, just buy more of the stable value fund is what I would recommend for now.
Why do you need to get your equity allocation down the 40%? I doubt you will notice any difference between your current 47% and that 40%. But if that's what you want, just buy more of the stable value fund is what I would recommend for now.
- Sat Jul 13, 2013 5:23 pm
- Forum: Personal Finance (Not Investing)
- Topic: Bank reccomendations
- Replies: 16
- Views: 1991
Re: Bank reccomendations
My "big bank" treats me like Abe's bank treats him. Plus they give my dog treats, too. I like that there are no fees for me, my spouse, and my children. We have about 12 different accounts with our big bank.
- Sat Jul 13, 2013 5:20 pm
- Forum: Personal Investments
- Topic: Rebalancing questions
- Replies: 4
- Views: 547
Re: Rebalancing questions
1. Yes, for me stock:bond ratio is more important than ratios within stocks and ratios within bonds. 2. While I have made taxable sales, I have only done so for tax-loss harvesting and to raise cash to pay expenses. I have not had to sell in taxable to rebalance, since I am able to rebalance in tax-advantaged. That said, my "bands" are rather narrow compared to some other posters. I will sell equities and buy bonds if they are 3% above my desired asset allocation for them. I will buy rebalance into equities if they are 2% below my AA for them or on a Really Bad Day for equities no matter what. I have plenty of carryover capital losses, so even if I sold in taxable at a gain, I don't think I would owe any cap gains taxes for many, ...
- Sat Jul 13, 2013 12:08 pm
- Forum: Personal Investments
- Topic: Newbie seeking 401k allocation help
- Replies: 1
- Views: 335
Re: Newbie seeking 401k allocation help
First, let me extend a hot summer welcome to the forum.
You should probably read some books to get a better idea of why you want to invest and what asset allocation you want. In the mean time, you can just invest in one of those Insperity Horizon funds and a Fidelity Freedom fund.
Of course, you can also tell us what asset allocation (% US stocks, % foreign stocks, % bonds) you want, but I suspect you don't know. And you won't know without reading at least 3 books from the bogleheads reading list.
Somebody is going to come along in a moment and ask you "What are the expense ratios of all the funds in your 401(k)?" And also, "What is that real estate investment?"
Welcome.
You should probably read some books to get a better idea of why you want to invest and what asset allocation you want. In the mean time, you can just invest in one of those Insperity Horizon funds and a Fidelity Freedom fund.
Of course, you can also tell us what asset allocation (% US stocks, % foreign stocks, % bonds) you want, but I suspect you don't know. And you won't know without reading at least 3 books from the bogleheads reading list.
Somebody is going to come along in a moment and ask you "What are the expense ratios of all the funds in your 401(k)?" And also, "What is that real estate investment?"
Welcome.
- Sat Jul 13, 2013 11:49 am
- Forum: Personal Finance (Not Investing)
- Topic: Bank reccomendations
- Replies: 16
- Views: 1991
Re: Bank reccomendations
I like my bank and would recommend it without reservations to you, but it is WellsFargo.
Which card are you talking about? Credit? ATM/Check card? I hadn't used my ATM card in long time, so when I tried to use it, I found it was no longer valid. I walked into the bank and got a new card immediately.
Which card are you talking about? Credit? ATM/Check card? I hadn't used my ATM card in long time, so when I tried to use it, I found it was no longer valid. I walked into the bank and got a new card immediately.