Search found 1571 matches

by BigJohn
Fri Sep 12, 2014 11:18 pm
Forum: Investing - Help with Personal Investments
Topic: IRA to Roth conversion after retirement ?
Replies: 14
Views: 2196

Re: IRA to Roth conversion after retirement ?

JohnFiscal, I'm 58 and am going to retire in about 3 months. I have a significant portion of our assets in tIRA from 401(k) conversion and none in a Roth. My plan is to delay SS until age 70 and do tIRA to Roth conversions each year for the next 12 years at which point SS and RMD's hit and will kick...
by BigJohn
Fri Sep 12, 2014 12:05 am
Forum: Local Chapters and Bogleheads Community
Topic: Roll Call for the Retirement Class of 2014!
Replies: 380
Views: 72078

Re: Roll Call for the Retirement Class of 2014!

Victoria, finally made my decision so you can add me to your upcoming graduate list. Last day at work Dec 17, 2014 and I'll be age 58.

P.S. Are you still on track to go from aspiring to actual flâneur in less than two weeks?
by BigJohn
Thu Sep 11, 2014 11:50 pm
Forum: Personal Finance (Not Investing)
Topic: Quit/retire - should I do this?
Replies: 41
Views: 5306

Re: Quit/retire - should I do this?

Thinking about quitting my job and essentially retiring early. Not sure how things work at your company but key question I'd ask based on this statement is "Are you eligible to retire?" At many companies, this requires some combination of years of service and age. This is a critical question becaus...
by BigJohn
Thu Sep 11, 2014 11:28 pm
Forum: Investing - Theory, News & General
Topic: 100% Small and Value Tilting
Replies: 72
Views: 7009

Re: 100% Small and Value Tilting

You only have a 40+ year horizon now. In 20 years it will be a 20+ year horizon and what will you do then? Are you really going to stay at 100% stocks? What about 10 years later when you've only got 10 years left? What if when you think it's time to transition to more bonds SCV is in the middle of a...
by BigJohn
Wed Sep 10, 2014 9:00 pm
Forum: Investing - Theory, News & General
Topic: Should anyone invest in short-term bonds at this point?
Replies: 46
Views: 5193

Re: Should anyone invest in short-term bonds at this point?

I agree that it's worth worrying about it a bit in the "long" muni funds, as in -- don't buy them enthusiastically for the high yield expecting not to pay for it with risk -- but that's about it. Just get the intermediate instead. I was in the long muni fund for years because yield was a good bit h...
by BigJohn
Wed Sep 10, 2014 7:35 pm
Forum: Investing - Help with Personal Investments
Topic: Help with Asset Allocation and a large stock position
Replies: 23
Views: 2960

Re: Help with Asset Allocation and a large stock position

OpenRoad,

Outstanding result for you and glad I could help! :beer
by BigJohn
Wed Sep 10, 2014 7:29 pm
Forum: Investing - Theory, News & General
Topic: Should anyone invest in short-term bonds at this point?
Replies: 46
Views: 5193

Re: Should anyone invest in short-term bonds at this point?

I think both of you are overthinking this. Sure, if you switch to short bonds before a time like summer 2013 you might avoid a few percent in losses, but if you're six months early and a year late on the other end, which if you're even a little humble you should see as quite likely, you give it awa...
by BigJohn
Wed Sep 10, 2014 7:08 am
Forum: Investing - Theory, News & General
Topic: Should anyone invest in short-term bonds at this point?
Replies: 46
Views: 5193

Re: Should anyone invest in short-term bonds at this point?

abyan, latest distribution yield of VFIRX was 0.63% with an SEC yield of 0.54%. Took a quick look on Vanguard and this is about the same as a 1 year CD there although I'm sure I could find something a bit higher if I shopped around. I had two reasons for going this way vs I-bonds or CD's. One is liq...
by BigJohn
Tue Sep 09, 2014 10:33 pm
Forum: Investing - Theory, News & General
Topic: Should anyone invest in short-term bonds at this point?
Replies: 46
Views: 5193

Re: Should anyone invest in short-term bonds at this point?

Man, bonds are a lot harder than equity to wrap your head around. abyan, that's an understatment!! For stocks, the TSM/TISM choice is a no brainer for me but I've been struggling with what to do with my bond allocation for a while. Back to your original post, I'll give you my answer as someone who ...
by BigJohn
Mon Sep 08, 2014 9:40 pm
Forum: Investing - Theory, News & General
Topic: Primer on slice and dice alternatives to total bond market?
Replies: 12
Views: 1700

Re: Primer on slice and dice alternatives to total bond mark

What is the state of the art knowledge on optimal bond investing for the best risk and returns? rca, there are several interesting discussions on the forum regarding this subject. Here's one of the most recent http://www.bogleheads.org/forum/viewtopic.php?f=10&t=145291 . As you'll see, my plan is t...
by BigJohn
Mon Sep 08, 2014 9:17 pm
Forum: Investing - Help with Personal Investments
Topic: Help with Asset Allocation and a large stock position
Replies: 23
Views: 2960

Re: Help with Asset Allocation and a large stock position

The stock is in an ESOP, separate from my company 401k. From what I've read in my plan documents, a percentage must be maintained in company stock (this percentage is the part I'm referring to). Based on the article above, I'm going to double check this. Re: 55 - this was a confusing comment by me,...
by BigJohn
Mon Sep 08, 2014 1:22 am
Forum: Personal Consumer Issues
Topic: Good Modern Science Fiction
Replies: 309
Views: 43396

Re: Good Modern Science Fiction

gatorman, never thought to ask this here but a great question as it appears we read many of the same books in our younger days. I went to Amazon looking through a few of the recommendations and found the first Book in the Wool series is available for free in Kindle version so I'm going to give it a ...
by BigJohn
Sun Sep 07, 2014 10:05 pm
Forum: Personal Finance (Not Investing)
Topic: CPA implies no step-up basis for deceased Dad's stock?
Replies: 10
Views: 1710

Re: CPA implies no step-up basis for deceased Dad's stock?

Gambler, sorry for your loss. I'm no tax expert but I do have some company stock in my 401(k). It qualifies for NUA treatment and I know that unlike other stock, should I die my heirs will not qualify for step-up basis. Here's a link to an FPA article on NUA, see p7 for estate planning consideration...
by BigJohn
Sun Sep 07, 2014 9:17 pm
Forum: Investing - Theory, News & General
Topic: How is tilting any different that active value investing
Replies: 55
Views: 3817

Re: How is tilting any different that active value investing

I doubt that Bogleheads are ever going to agree on one conceptual framework for the place of factor investing between the worlds of passive and active management. But, for us visual types, this is one way of looking at it — and it's a model that fits my own sense of the question. Simplegift, you've...
by BigJohn
Sat Sep 06, 2014 11:37 am
Forum: Investing - Theory, News & General
Topic: How is tilting any different that active value investing
Replies: 55
Views: 3817

Re: How is tilting any different that active value investing

This is just wrong. A value stock is defined by academics very simply, typically lowest 30% as ranked by some metric. To me this is simple, what you have shown is that DFA altered it's definitions of buy and hold ranges as the science of investing advanced. Larry, the more DFA and others deviate fr...
by BigJohn
Wed Sep 03, 2014 10:18 pm
Forum: Personal Consumer Issues
Topic: How do you keep your electricity bill low?
Replies: 123
Views: 13256

Re: How do you keep your electricity bill low?

Biggest change I made was to add more insulation in the attic. I'm a do-it-yourself person and went to my local big box home store and bought rolls of R-30 foam glass (no vapor barrier, plastic encapsulated). Here's one example http://www.homedepot.com/p/Owens-Corning-R30-Unfaced-Continuous-Roll-15-...
by BigJohn
Tue Sep 02, 2014 6:16 pm
Forum: Investing - Help with Personal Investments
Topic: Help with Asset Allocation and a large stock position
Replies: 23
Views: 2960

Re: Help with Asset Allocation and a large stock position

OpenRoad, your rebalancing is going to be a bit different that many. I don't know how you assets are layed out (ie how much in taxable v tax deferred) but here are a couple of things to think about. If you know you're going to keep getting significant company stock ensure that your contribuitons els...
by BigJohn
Tue Sep 02, 2014 1:44 am
Forum: Personal Finance (Not Investing)
Topic: Health
Replies: 20
Views: 3676

Re: Alzheimer's and Prenup

Daisy Dog, my sincere sympathies regarding your situation. I won't go into the details but speaking from personal experience I agree with Gnirk's comment. I know you both maybe in denial now but it's really important to get with your estate attorney soon. You need to have new documents prepared that...
by BigJohn
Tue Sep 02, 2014 12:48 am
Forum: Investing - Help with Personal Investments
Topic: Will Bill Gross beat the Total Bond Market Index?
Replies: 57
Views: 7634

Re: Will Bill Gross beat the Total Bond Market Index?

Knowing that, is it worth it to pay a slightly higher management fee to Gross, rolling the dice he will beat the Total Bond Index over time when interest rates rise? Be careful with the mindset that ER's don't matter as long as return is higher. A better way to think of this is why should you want ...
by BigJohn
Mon Sep 01, 2014 7:20 pm
Forum: Investing - Help with Personal Investments
Topic: Help with Asset Allocation and a large stock position
Replies: 23
Views: 2960

Re: Help with Asset Allocation and a large stock position

Include the stock in your overall stock/bond ratio (e.g. 60/40 - risk tolerance), but exclude it from the equity portion (breakdown of the 60%). If you want 50% Total Stock Market and 50% International, then invest in this ratio. If the stock goes to zero, your portfolio is still diversified 50/50....
by BigJohn
Sun Aug 31, 2014 1:28 pm
Forum: Investing - Help with Personal Investments
Topic: How much money is too much for the 3 fund port?
Replies: 15
Views: 2019

Re: How much money is too much for the 3 fund port?

ababs wrote:So even in record low interest rate environment, are the total bond fund and the intermediate term tax exempt bond fund still good choices?
Yes, suggest you read the wiki on bonds vs bond funds for a more detailed explanation. http://www.bogleheads.org/wiki/Individu ... _bond_fund
by BigJohn
Sun Aug 31, 2014 1:22 pm
Forum: Investing - Help with Personal Investments
Topic: bonds in taxable. which fund?
Replies: 6
Views: 1085

Re: bonds in taxable. which fund?

I have some in intermediate muni and some in LTD term Tax exempt. Both are good funds. I would hesitate to go for much longer duration. I also use both of these as well as a side question: my current asset allocation is 70/30 stock/bond. If I have excess cash (not earning any interest or minimal ch...
by BigJohn
Sat Aug 30, 2014 10:50 am
Forum: Investing - Help with Personal Investments
Topic: Selling Covered Calls, Am I Missing Something??
Replies: 9
Views: 2255

Re: Selling Covered Calls, Am I Missing Something??

Thanks for the perspective. I know this is not risk free but neither is any other strategy to decide when to sell. Agree with toto that I have to have some frame of reference for comparison against which to judge this strategy so here is more detail on the alternatives I've considered. Let's assume ...
by BigJohn
Sat Aug 30, 2014 12:51 am
Forum: Investing - Help with Personal Investments
Topic: Selling Covered Calls, Am I Missing Something??
Replies: 9
Views: 2255

Selling Covered Calls, Am I Missing Something??

Retirement is approaching in the next 6 - 9 months. At that time I'll be moving a significant amount of company stock from my 401(k) into a taxable account taking advantage of tax paid credit balance and NUA provisions. This stock will represent about 30% of the total assets in my taxable accounts a...
by BigJohn
Fri Aug 29, 2014 11:20 pm
Forum: Investing - Help with Personal Investments
Topic: Help with Asset Allocation and a large stock position
Replies: 23
Views: 2960

Re: Help with Asset Allocation and a large stock position

I've been in a similar circumstance for many years. Here's how I handle in my AA spreadsheet. 1) I created a separate asset type just for company stock in order to keep track of what % of my total net worth this represented. 2) When considering my overall stock/bond allocation I included company sto...
by BigJohn
Thu Aug 28, 2014 11:44 pm
Forum: Investing - Theory, News & General
Topic: A Low-Return Future? Are We Prepared?
Replies: 189
Views: 17390

Re: A Low-Return Future? Are We Prepared?

So what if people say we'll have low returns for the next decade. The lower they are, the higher they're likely to be the decade after that. This view is consistent with what I took away from recently reading Bernstein's "Rational Expectations" and Graham's "Intelligent Investor". The market has hi...
by BigJohn
Wed Aug 27, 2014 11:51 pm
Forum: Personal Finance (Not Investing)
Topic: SP500 and recency bias
Replies: 23
Views: 2716

Re: SP500 and recency bias

Villars, If you can keep from spending it, I think you're well on your way to a rational decision :D My personal perspective on some of your comments. The negative bond idea is not perfect which is why the wiki indicates the topic is controversial. Ultimately I agree with you and look at my house as...
by BigJohn
Wed Aug 27, 2014 5:41 pm
Forum: Investing - Help with Personal Investments
Topic: Fido/Vanguard vs. Fido
Replies: 9
Views: 2109

Re: Fido/Vanguard vs. Fido

Don't you just love that aha moment :sharebeer

Best of luck with your decision!!
by BigJohn
Tue Aug 26, 2014 11:53 pm
Forum: Investing - Theory, News & General
Topic: Interest rates, Bonds and Fed
Replies: 16
Views: 2154

Re: Interest rates, Bonds and Fed

ogd wrote:Now, in terms of your proposals: I'd strongly advise you to not buy individual corporates.
cmills, in my opinion more great advice from ogd.
by BigJohn
Tue Aug 26, 2014 11:38 pm
Forum: Personal Finance (Not Investing)
Topic: SP500 and recency bias
Replies: 23
Views: 2716

Re: SP500 and recency bias

I did write an IPS.... Except I did not have a case for what to do with proceeds from a house sale. OK, so you need to add to your IPS. I promise it will not be the last time that you need to make a significant decision about some "new" financial circumstance. As mentioned, there is a lot of readin...
by BigJohn
Tue Aug 26, 2014 10:16 pm
Forum: Investing - Help with Personal Investments
Topic: Fido/Vanguard vs. Fido
Replies: 9
Views: 2109

Re: Fido/Vanguard vs. Fido

Makaveli, a few things to think about I agree, if all funds returned 2%, then ER matters. However, that doesn't appear to be the case. As you mentioned, PTTRX's risk rewards investors with higher yields. Although it appears from that discussion board that they perform dark magic that no one can foll...
by BigJohn
Mon Aug 25, 2014 10:57 pm
Forum: Investing - Help with Personal Investments
Topic: On the fence with VDC
Replies: 5
Views: 986

Re: On the fence with VDC

For both simplicity and diversification benefits I'd sell all four, pay the LTCG tax and invest in VTSAX and/or VTIAX to get to your target asset allocation.
by BigJohn
Mon Aug 25, 2014 10:35 pm
Forum: Investing - Help with Personal Investments
Topic: Fido/Vanguard vs. Fido
Replies: 9
Views: 2109

Re: Fido/Vanguard vs. Fido

Not sure why you're using PTTRX as with SEC yield around 2% you're giving up 10% (Fido) to 20% (VG) of you total return to pay PIMCO. Mind explaining this? A quick comparison based on the following example. If the yield before expense for all three is 2%, then the PIMCO ER will reduce your return b...
by BigJohn
Mon Aug 25, 2014 10:05 pm
Forum: Personal Finance (Not Investing)
Topic: Mortgages and financial freedom
Replies: 111
Views: 10232

Re: Mortgages and financial freedom

Why do you feel more financially free or secure with the mortgage paid off? If I chose to pay off my mortgage, it would require me to pile $170k into a fairly illiquid asset. I think a major difference between the two schools of thought on this are whether you view a house as an investment asset or...
by BigJohn
Mon Aug 25, 2014 9:22 pm
Forum: Personal Finance (Not Investing)
Topic: SP500 and recency bias
Replies: 23
Views: 2716

Re: SP500 and recency bias

Is this change of heart typical? Does it say something about my ability to stay the course? Yes it's very typical. Lots of reading material out there that reinforces that human brains are wired to find patterns. We do this so well we find them even when they do not exist. In investing this manifest...
by BigJohn
Mon Aug 25, 2014 8:28 pm
Forum: Investing - Help with Personal Investments
Topic: Help Collecting Useful Threads for A New Boglehead
Replies: 13
Views: 1076

Re: Help Collecting Useful Threads for A New Boglehead

Fallible wrote: I would also recommend Bill Bernstein's new e-book, If You Can: How Millennials Can Get Rich Slowly."
+1

I sent a copy to all my chidren, nieces and nephews. It's only about 16 pages and can be read in an hour or so and is targeted specifically at young adults in their mid-to-late 20's.
by BigJohn
Mon Aug 25, 2014 1:49 pm
Forum: Investing - Help with Personal Investments
Topic: Callable municipal bonds
Replies: 6
Views: 663

Re: Callable municipal bonds

I stopped investing in individual munis several years ago but held what I had so all have interest rates at about your level. All that have been eligible to call in the last 2 or 3 years have been called. Unless interest rates rise significantly before the call date, I expect yours will be as well.
by BigJohn
Mon Aug 25, 2014 6:42 am
Forum: Investing - Help with Personal Investments
Topic: Is the small cap value premium real?
Replies: 23
Views: 4452

Re: Is the small cap value premium real?

I am still looking for up to date figures, nobody? In the mean time I found the following Not exactly sure what up-to-date figures you are looking for. One of your links was 86 years of data through 2013, not sure how adding 6 more months of data is going to change that. If you want an up-to-date p...
by BigJohn
Sun Aug 24, 2014 10:42 pm
Forum: Investing - Help with Personal Investments
Topic: Fido/Vanguard vs. Fido
Replies: 9
Views: 2109

Re: Fido/Vanguard vs. Fido

Took a look at your two options and some of your comments. A few observations. On the plus side, a PTTRX vs VIPIX comparison (my 401k does not offer ISUB) displays a more stable PTTRX fund. I lose out on VIPIX (0.07) low ER but am comfortable paying the 0.46 PTTRX for stable returns. VIPIX is a TIPS...
by BigJohn
Sat Aug 23, 2014 10:29 pm
Forum: Personal Finance (Not Investing)
Topic: best refi options?
Replies: 4
Views: 920

Re: best refi options?

LeeMKE wrote:If you won't pay it off in 5, why not get a 15 year loan and lock down the interest rate?
+2
by BigJohn
Sat Aug 23, 2014 1:06 pm
Forum: Investing - Theory, News & General
Topic: Is the Aggregate Index Too Heavy in Treasuries?
Replies: 63
Views: 7758

Re: Is the Aggregate Index Too Heavy in Treasuries?

But since almost every 'investment grade' portfolio has to sell the same issues at the same time, when downgraded below BBB-/Baa3, that risk premium is out sized, and cancels out more of the spread in corporates than the historical default loss record would imply, making corporate bonds (sold if th...
by BigJohn
Sat Aug 23, 2014 11:45 am
Forum: Investing - Theory, News & General
Topic: Is the Aggregate Index Too Heavy in Treasuries?
Replies: 63
Views: 7758

Re: Is the Aggregate Index Too Heavy in Treasuries?

With regard to "owning the market is less important in fixed income" I guess I feel that nothing is as important in fixed income. That's what "low risk" means. Not sure I agree with your definition of low risk. The difference is that with stocks there is no way to really tell the long term winners ...
by BigJohn
Sat Aug 23, 2014 9:17 am
Forum: Investing - Theory, News & General
Topic: Is the Aggregate Index Too Heavy in Treasuries?
Replies: 63
Views: 7758

Re: Is the Aggregate Index Too Heavy in Treasuries?

Longinvest, understand and agree with your point that even TSM has some arbitrary rules. Difference I think is that market cap of penny stocks makes percentage within TSM hard to see and therefore not material whereas junk bonds are a far larger proportion of the "total" bond market.
by BigJohn
Sat Aug 23, 2014 8:57 am
Forum: Investing - Theory, News & General
Topic: Is the Aggregate Index Too Heavy in Treasuries?
Replies: 63
Views: 7758

Re: Is the Aggregate Index Too Heavy in Treasuries?

In the case of "the" stock market, there really is, sort of, a natural integrated market with clear limits. The real problem with "the" bond market is that as I understand it, there isn't any single organization, there are just a lot of financial institutions that make a business of holding and tra...
by BigJohn
Fri Aug 22, 2014 1:43 pm
Forum: Investing - Theory, News & General
Topic: Is the Aggregate Index Too Heavy in Treasuries?
Replies: 63
Views: 7758

Re: Is the Aggregate Index Too Heavy in Treasuries?

Valuethinker, assumption in my statement about both TBM and the IT Corp Bond fund was that some amount of those bonds are likely callable and will generate some negative convexity. This may be a bad assumption as I have yet to find a way to understand how much call risk is buried in either. Chan_va,...
by BigJohn
Fri Aug 22, 2014 10:58 am
Forum: Investing - Theory, News & General
Topic: Is the Aggregate Index Too Heavy in Treasuries?
Replies: 63
Views: 7758

Re: Is the Aggregate Index Too Heavy in Treasuries?

The effect is called "convexity" and I keep forgetting how it works, and don't know whether it's relevant here. Nisi, I'm no bond expert but at least a partial explantion here http://www.bogleheads.org/forum/viewtopic.php?p=2149769#p2149769 The negative convexity of MBS is one of the reasons I'm le...
by BigJohn
Fri Aug 22, 2014 10:50 am
Forum: Investing - Theory, News & General
Topic: Give Your Portfolio Room To Maneuver-DFA/Bridgeway
Replies: 13
Views: 2579

Re: Give Your Portfolio Room To Maneuver-DFA/Bridgeway

This statement near the end seems to be more than a little contradictory. While three years is too short a period to draw any statistically-sound conclusions, the lesson here is still a clear one: with investing, it makes the most sense to use the most broadly-diversified portfolios possible. I tota...
by BigJohn
Fri Aug 22, 2014 10:24 am
Forum: Investing - Theory, News & General
Topic: Is the Aggregate Index Too Heavy in Treasuries?
Replies: 63
Views: 7758

Re: Is the Aggregate Index Too Heavy in Treasuries?

That is basically the approach I take. I started with TBM except no MBS or long bonds which brought me to the BarCap Intermediate (1-10) Government/Credit Index as my bogey. VFIUX is missing the 1-3 maturity range so I add a short Treasury fund in taxable which also increases my tax efficiency. The...
by BigJohn
Fri Aug 22, 2014 7:03 am
Forum: Investing - Theory, News & General
Topic: Is the Aggregate Index Too Heavy in Treasuries?
Replies: 63
Views: 7758

Re: Is the Aggregate Index Too Heavy in Treasuries?

What do you mean by risk? How are you quantifying it? Fair question. For me it's the "risk creep" referred to earlier in this post (ie moving proportion of Tresaury vs Corporate) combined with the convexity risk of MBS. Just seems to me that if I set the ratio of Treasury to Corporate, I'll get les...