Should I keep my Stocks?

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jsm1708
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Should I keep my Stocks?

Post by jsm1708 » Sat Oct 07, 2017 3:51 am

I am 47 and have a 401K with my employer with a current value of $150K. I also have a pension with my employer with a current balance of $40K. I finally moved my separate IRA from Edward Jones about 6 months ago to Vanguard. I liquidated the EJ mutual funds, which were $140K , before moving to Vanguard. I put $70K in VFIAX, $30K in VIMAX, $20K in VFWAX, $10K VEMAX, $5K in VEURX and $5K in VBMFX. My EJ IRA also contained individual stocks that I simply transferred from EJ to Vanguard. Now I'm wondering if I should begin selling my individual stocks and moving that money into those previously mentioned Vanguard funds. Especially the bond funds because I am so out of balance. The total balance of these stocks is approximately $143K. I would like opinions on this please.

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Ged
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Re: Should I keep my Stocks?

Post by Ged » Sat Oct 07, 2017 5:06 am

Sell them. Do it over time if you have a lot of cap gains to minimize taxation.

TIAX
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Re: Should I keep my Stocks?

Post by TIAX » Sat Oct 07, 2017 5:13 am

Please list the stocks and the unrealized gains for each.

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Watty
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Re: Should I keep my Stocks?

Post by Watty » Sat Oct 07, 2017 5:48 am

TIAX wrote:
Sat Oct 07, 2017 5:13 am
Please list the stocks and the unrealized gains for each.
It sounds like they are in an IRA where capital gains taxes are not an issue so I would sell them right away.

If you don't have also have retirement funds in a taxable account then your investments could be a lot simpler by just using a Target Date Retirement fund. People sometimes think of them as being some sort of dumbed down investing option that needs to be improved on but in the right situation they are an excellent choice when you have low cost options like at Vanguard.
Last edited by Watty on Sat Oct 07, 2017 5:59 am, edited 2 times in total.

tbone555
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Re: Should I keep my Stocks?

Post by tbone555 » Sat Oct 07, 2017 5:54 am

There are no tax consequences if they are in an IRA. Sell them if you want to.

Tamarind
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Re: Should I keep my Stocks?

Post by Tamarind » Sat Oct 07, 2017 6:02 am

If all the individual stocks are in an IRA (Trad or Roth), you can sell immediately with no tax effects. This is what I did.

If your individual stocks are in a Taxable brokerage account, see the replies above.

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CyclingDuo
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Re: Should I keep my Stocks?

Post by CyclingDuo » Sat Oct 07, 2017 7:56 am

jsm1708 wrote:
Sat Oct 07, 2017 3:51 am
I am 47 and have a 401K with my employer with a current value of $150K. I also have a pension with my employer with a current balance of $40K. I finally moved my separate IRA from Edward Jones about 6 months ago to Vanguard. I liquidated the EJ mutual funds, which were $140K , before moving to Vanguard. I put $70K in VFIAX, $30K in VIMAX, $20K in VFWAX, $10K VEMAX, $5K in VEURX and $5K in VBMFX. My EJ IRA also contained individual stocks that I simply transferred from EJ to Vanguard. Now I'm wondering if I should begin selling my individual stocks and moving that money into those previously mentioned Vanguard funds. Especially the bond funds because I am so out of balance. The total balance of these stocks is approximately $143K. I would like opinions on this please.
What stocks are they? Chances are in this bull market, they have kept pace (matched) the market returns, so no loss there. And the ER fees are $0 for individual stocks.

As others have mentioned, since they are in your IRA there will be no tax consequences of selling some (or all) to balance out your AA.

Helo80
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Re: Should I keep my Stocks?

Post by Helo80 » Sat Oct 07, 2017 11:11 am

It's a tricky question....

A true BH would not own individual stocks. However, there are a decent amount here that own individual stocks though (just completely pulling this out) it's less than 10% of our portfolios. There's nothing wrong with play money for individual stocks or cryptocurrency speculation.... just do not bet your retirement on it.

If you own facebook, apple, netflix, google, amazon, micrsoft, etc. I probably would not sell personally.

Valuethinker
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Re: Should I keep my Stocks?

Post by Valuethinker » Sat Oct 07, 2017 12:29 pm

jsm1708 wrote:
Sat Oct 07, 2017 3:51 am
I am 47 and have a 401K with my employer with a current value of $150K. I also have a pension with my employer with a current balance of $40K. I finally moved my separate IRA from Edward Jones about 6 months ago to Vanguard. I liquidated the EJ mutual funds, which were $140K , before moving to Vanguard. I put $70K in VFIAX, $30K in VIMAX, $20K in VFWAX, $10K VEMAX, $5K in VEURX and $5K in VBMFX. My EJ IRA also contained individual stocks that I simply transferred from EJ to Vanguard. Now I'm wondering if I should begin selling my individual stocks and moving that money into those previously mentioned Vanguard funds. Especially the bond funds because I am so out of balance. The total balance of these stocks is approximately $143K. I would like opinions on this please.
Yes you should sell.

The key is taxation management.

Many of us lost 90 per cent plus of our investments during the dot com crash. Individual stocks. How would you feel if that happened to you?

My father had over 100k in General Electric stock in 2000. That was the world's largest company by market cap and highly diversified. One of the world's most admired companies. No dot com flake.v 13 years later we sold it for something like half.

I won't bore you with how many people lost their savings in multi billion dollar companies like Nortel (bust) and Lucent ( was down 90 per cent I believe).

Valuethinker
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Re: Should I keep my Stocks?

Post by Valuethinker » Sat Oct 07, 2017 12:33 pm

Helo80 wrote:
Sat Oct 07, 2017 11:11 am
It's a tricky question....

A true BH would not own individual stocks. However, there are a decent amount here that own individual stocks though (just completely pulling this out) it's less than 10% of our portfolios. There's nothing wrong with play money for individual stocks or cryptocurrency speculation.... just do not bet your retirement on it.

If you own facebook, apple, netflix, google, amazon, micrsoft, etc. I probably would not sell personally.
After all a portfolio of yahoo Cisco intel hp IBM has done so well since 2000?

My point being you can't call individual stocks and especially not tech.

Pharmaceutical stocks were the no brainers of the 1990s btw. The demographics said drugs were going to grow infinitely.

BuyAndHoldOn
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Re: Should I keep my Stocks?

Post by BuyAndHoldOn » Sat Oct 07, 2017 1:04 pm

These stocks may or may not be good investments. [obviously] none of us really know if you should sell your stocks.

Do some research and decide for yourself --> do research on on asset allocation strategies, on the specific companies, the economy - etc.. You can keep some or all of the positions; this doesn't have to be all-or-nothing [again, obviously].

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nedsaid
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Re: Should I keep my Stocks?

Post by nedsaid » Sat Oct 07, 2017 1:08 pm

Valuethinker wrote:
Sat Oct 07, 2017 12:29 pm

I won't bore you with how many people lost their savings in multi billion dollar companies like Nortel (bust) and Lucent ( was down 90 per cent I believe).
Yes, I had big losses with Lucent. I switched out of Lucent into Nortel and experience more losses. This shows the dangers of individual stock risk. Another disaster was AIG which cratered during the financial crisis.

Fortunately, I have had winners too. Last I checked, my individual stocks in retirement accounts barely beat the US Total Market over the last 15 years. When I checked 3 1/2 months earlier, my stocks trailed the US Total Market Index over 15 years. My recommendation for new investors is to stick with the broad indexes, you still have stock market risk but you don't have the single stock risk.
A fool and his money are good for business.

ThePrince
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Re: Should I keep my Stocks?

Post by ThePrince » Sat Oct 07, 2017 3:20 pm

Valuethinker wrote:
Sat Oct 07, 2017 12:33 pm
Helo80 wrote:
Sat Oct 07, 2017 11:11 am
It's a tricky question....

A true BH would not own individual stocks. However, there are a decent amount here that own individual stocks though (just completely pulling this out) it's less than 10% of our portfolios. There's nothing wrong with play money for individual stocks or cryptocurrency speculation.... just do not bet your retirement on it.

If you own facebook, apple, netflix, google, amazon, micrsoft, etc. I probably would not sell personally.
After all a portfolio of yahoo Cisco intel hp IBM has done so well since 2000?

My point being you can't call individual stocks and especially not tech.

Pharmaceutical stocks were the no brainers of the 1990s btw. The demographics said drugs were going to grow infinitely.
+1

The temptation of purchasing individual stocks should be resisted.

jsm1708
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Re: Should I keep my Stocks?

Post by jsm1708 » Sat Oct 07, 2017 7:08 pm

Thank you all for your opinions. All my individual stocks were bought when I was an ignorant Edward Jones sheep. I will list them below to help everyone understand my position. I am just trying to understand why EJ advisors recommend putting half of your money in mutual funds and half in individual equities. Maybe some can answer that as well. Also, if I do sell these stocks and buy into Vanguard funds, what costs will I encounter?

Stock__________# of shares__________ unrealized gain/loss

1. APPLE 135 $ 5,602.00
2. CHEVERON 70 $ 1,278.00
3. DOMINION 54 $ 27.00
4. EMERSON ELEC. 224 $ 2,252.00
5. J&J 71 $ 1,068.00
6. MCDONALDS 25 $ 1,095.00
7. MERCK 81 $ 211.00
8. MDLZ 141 $ -303.00
9. NOVARTIS 62 $ 282.00
10. PEPSICO 57 $ 230.00
11. PNC BANK 78 $ 3,440.00
12. PRAXAIR 33 $ 771.00
13. SCHLUMBERGER 81 $ -701.00
14. THOMSON REUT 130 $ 648.00
15. TJMAX 67 $ -94.00
16. US VANCORP 141 $ 1,528.00
17. VERIZON 101 $ -271.00
18. VISA 96 $ 2,274.00
19. WELLS FARGO 177 $ 1,470.00

BuyAndHoldOn
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Re: Should I keep my Stocks?

Post by BuyAndHoldOn » Sat Oct 07, 2017 7:41 pm

jsm1708 wrote:
Sat Oct 07, 2017 7:08 pm
Thank you all for your opinions. All my individual stocks were bought when I was an ignorant Edward Jones sheep. I will list them below to help everyone understand my position. I am just trying to understand why EJ advisors recommend putting half of your money in mutual funds and half in individual equities. Maybe some can answer that as well. Also, if I do sell these stocks and buy into Vanguard funds, what costs will I encounter?

Stock__________# of shares__________ unrealized gain/loss

1. APPLE 135 $ 5,602.00
2. CHEVERON 70 $ 1,278.00
3. DOMINION 54 $ 27.00
4. EMERSON ELEC. 224 $ 2,252.00
5. J&J 71 $ 1,068.00
6. MCDONALDS 25 $ 1,095.00
7. MERCK 81 $ 211.00
8. MDLZ 141 $ -303.00
9. NOVARTIS 62 $ 282.00
10. PEPSICO 57 $ 230.00
11. PNC BANK 78 $ 3,440.00
12. PRAXAIR 33 $ 771.00
13. SCHLUMBERGER 81 $ -701.00
14. THOMSON REUT 130 $ 648.00
15. TJMAX 67 $ -94.00
16. US VANCORP 141 $ 1,528.00
17. VERIZON 101 $ -271.00
18. VISA 96 $ 2,274.00
19. WELLS FARGO 177 $ 1,470.00
Cost of selling in a tax deferred account should just be the commission on trades. Do you have some free trades you have not used/used up? Call your broker for more information; I am sure they can explain what you'd be paying (or not paying).


....and, I like a lot of your stock positions :) Just saying. Plus you are reasonably diversified - not just one sector by any means.

But you'll have to decide on your asset allocation (& if individual stocks are part of it for you). Keep reading and learning, and you'll make an informed decision.

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CyclingDuo
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Re: Should I keep my Stocks?

Post by CyclingDuo » Sat Oct 07, 2017 8:09 pm

jsm1708 wrote:
Sat Oct 07, 2017 7:08 pm
Thank you all for your opinions. All my individual stocks were bought when I was an ignorant Edward Jones sheep.
Luckily, the EJ team put you in a nice diverse mix covering plenty of sectors.
jsm1708 wrote:
Sat Oct 07, 2017 7:08 pm
I will list them below to help everyone understand my position. I am just trying to understand why EJ advisors recommend putting half of your money in mutual funds and half in individual equities. Maybe some can answer that as well.
Depends on what answers you provided them with regard to your investor profile, risk tolerance, goals, etc... . Your list is a dividend producing, sector encompassing portfolio that in combination tracks the market. The ability to use the dividends to rebalance, or trim winners to rebalance may have been your advisors goal. Don't forget that you can make money with an individual stock portfolio. The ease of not having to choose the basket of stocks by going to index funds is why one method is called a "lazy portfolio", and the other requires a bit more thought to choose and monitor. Both can lead to one's financial goals.

You would be surprised how many Bogleheads have a mix of index funds and individual stocks in their portfolios.

jsm1708 wrote:
Sat Oct 07, 2017 7:08 pm
Also, if I do sell these stocks and buy into Vanguard funds, what costs will I encounter?

Stock__________# of shares__________ unrealized gain/loss

1. APPLE 135 $ 5,602.00
2. CHEVERON 70 $ 1,278.00
3. DOMINION 54 $ 27.00
4. EMERSON ELEC. 224 $ 2,252.00
5. J&J 71 $ 1,068.00
6. MCDONALDS 25 $ 1,095.00
7. MERCK 81 $ 211.00
8. MDLZ 141 $ -303.00
9. NOVARTIS 62 $ 282.00
10. PEPSICO 57 $ 230.00
11. PNC BANK 78 $ 3,440.00
12. PRAXAIR 33 $ 771.00
13. SCHLUMBERGER 81 $ -701.00
14. THOMSON REUT 130 $ 648.00
15. TJMAX 67 $ -94.00
16. US VANCORP 141 $ 1,528.00
17. VERIZON 101 $ -271.00
18. VISA 96 $ 2,274.00
19. WELLS FARGO 177 $ 1,470.00
Outside of transaction costs per trade, nothing.

dcop
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Re: Should I keep my Stocks?

Post by dcop » Sat Oct 07, 2017 11:57 pm

In 2010 I invested $166K into good stocks that paid dividends. They are now worth $213K and yielding 8.24% dividends. Obviously I got them soon after the 2008 beat down but the $213K is only 12% of my net-worth so I'm comfortable leaving them there. If my gains would shrink 50% or there would be dividend cuts I would bail and go in Vanguard Bond funds. I'd even feel ok about it considering I was still up.

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Watty
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Re: Should I keep my Stocks?

Post by Watty » Sun Oct 08, 2017 7:13 am

Since they are in a retirement account and taxes are not an issue if you sold them I am surprised that there is even lukewarm support for keeping them. Selling them is a slam dunk easy choice.

Some people can do Ok with owning a few carefully selected stocks but even if buying an individual stock makes sense you can't just leave it on automatic pilot and forget about it once you own it. At least once a quarter you will need to review the company's news and financials to see if anything has changed. You also need to review their industry and competitors to see if anything has changed with them too. With 19 stocks that could take a couple of days each quarter if you spend even an hour reviewing each stock.

If you use the funds from the sale to buy index funds you will still own some of the same stocks in the index funds so you don't need to have any regrets if one of the stock soars.

Grt2bOutdoors
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Re: Should I keep my Stocks?

Post by Grt2bOutdoors » Sun Oct 08, 2017 7:26 am

Watty wrote:
Sun Oct 08, 2017 7:13 am
Since they are in a retirement account and taxes are not an issue if you sold them I am surprised that there is even lukewarm support for keeping them. Selling them is an easy choice.

Some people can do Ok with owning a few carefully selected stocks but even if buying an individual stock makes sense you can't just leave it on automatic pilot and forget about it once you own it. At least once a quarter you will need to review the company's news and financials to see if anything has changed. You also need to review their industry and competitors to see if anything has changed with them too. With 19 stocks that could take a couple of days each quarter if you spend even an hour reviewing each stock.
That is exactly what an individual account holder should do in theory. An individual stock is a lottery ticket, it's not a short term vehicle to riches, rather it is dormant. The old saying is "don't invest money in equities you can not afford to lose in equities". Owning an equity index spreads risks out, but it does not eliminate it either. Applying the belief you need to monitor every quarter and every competitor to individual equities - (speaks of short-termism or momentum speculation) what makes you think the index protects you? If you believe markets are efficient, then monitoring is moot, the news is already priced into the equity. Most index are market cap weighed, the largest stocks receive the biggest piece of the investment. Some equities are not even represented in the index, so if an index equity starts deteriorating to an out of index equity you will not benefit.
"One should invest based on their need, ability and willingness to take risk - Larry Swedroe" Asking Portfolio Questions

David Scubadiver
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Re: Should I keep my Stocks?

Post by David Scubadiver » Sun Oct 08, 2017 7:59 am

I buy and I sell, all without following how a company is doing. Sometimes I rely on the advice of the Fool Advisor. Sometimes I buy for no reason other than because a stock is going down down down while the market is going up and there is no obvious reason for the decline.

Remember, if you believe in the random walk, that markets are efficient, then there is no reason to really follow a stock. Everything is efficiently priced. Unless it is not. But studying the financials of a company followed by a dozen analysts is not going to give you an edge.

Buying when the herd is selling, well, that MIGHT give you an edge provided they aren’t selling for a good reason.

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nedsaid
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Re: Should I keep my Stocks?

Post by nedsaid » Sun Oct 08, 2017 10:13 am

jsm1708 wrote:
Sat Oct 07, 2017 7:08 pm
Thank you all for your opinions. All my individual stocks were bought when I was an ignorant Edward Jones sheep. I will list them below to help everyone understand my position. I am just trying to understand why EJ advisors recommend putting half of your money in mutual funds and half in individual equities. Maybe some can answer that as well. Also, if I do sell these stocks and buy into Vanguard funds, what costs will I encounter?

Stock__________# of shares__________ unrealized gain/loss

1. APPLE 135 $ 5,602.00
2. CHEVERON 70 $ 1,278.00
3. DOMINION 54 $ 27.00
4. EMERSON ELEC. 224 $ 2,252.00
5. J&J 71 $ 1,068.00
6. MCDONALDS 25 $ 1,095.00
7. MERCK 81 $ 211.00
8. MDLZ 141 $ -303.00
9. NOVARTIS 62 $ 282.00
10. PEPSICO 57 $ 230.00
11. PNC BANK 78 $ 3,440.00
12. PRAXAIR 33 $ 771.00
13. SCHLUMBERGER 81 $ -701.00
14. THOMSON REUT 130 $ 648.00
15. TJMAX 67 $ -94.00
16. US VANCORP 141 $ 1,528.00
17. VERIZON 101 $ -271.00
18. VISA 96 $ 2,274.00
19. WELLS FARGO 177 $ 1,470.00
Not bad. This is a portfolio of individual stocks that I would not mind owning myself. Really, you
have to make a decision regarding investing philosophy. Do you want simple or do you want more complex? Do you want to spend little time managing a portfolio or do you want a more time consuming approach? My suspicion is that you want simple and that you want to spend little time on this.

I am sort of a stock jock myself, having owned individual stocks since 1988. I have de-emphasized their role in my portfolio, in early 2000, my individual stocks were 45% of my portfolio; today, they are about 12.5%. I also have indexed a good portion of my portfolio too. I really have enjoyed individual stock ownership but it does take some time. Over the years, I have about matched the market performance, depending on when I peek.

The most efficient way to invest is to simply buy the broad indexes.
A fool and his money are good for business.

inbox788
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Joined: Thu Mar 15, 2012 5:24 pm

Re: Should I keep my Stocks?

Post by inbox788 » Sun Oct 08, 2017 10:48 am

jsm1708 wrote:
Sat Oct 07, 2017 7:08 pm
I am just trying to understand why EJ advisors recommend putting half of your money in mutual funds and half in individual equities.
Diworsification!

http://www.businessdictionary.com/defin ... ation.html

Do you know which half did better? After fees? Any simple way to figure out returns for either strategy and compare them to SP500 or similar?
3. DOMINION 54 $ 27.00
7. MERCK 81 $ 211.00
8. MDLZ 141 $ -303.00
9. NOVARTIS 62 $ 282.00
10. PEPSICO 57 $ 230.00
13. SCHLUMBERGER 81 $ -701.00
15. TJMAX 67 $ -94.00
17. VERIZON 101 $ -271.00
These will yield you almost $1000 in losses, which I assume they're long term. Sell some for gains to nearly zero out gains, and diversify. Any short term losses are even more valuable. What is your tax bracket?
1. APPLE 135 $ 5,602.00
2. CHEVERON 70 $ 1,278.00
4. EMERSON ELEC. 224 $ 2,252.00
5. J&J 71 $ 1,068.00
6. MCDONALDS 25 $ 1,095.00
11. PNC BANK 78 $ 3,440.00
12. PRAXAIR 33 $ 771.00
14. THOMSON REUT 130 $ 648.00
16. US VANCORP 141 $ 1,528.00
18. VISA 96 $ 2,274.00
19. WELLS FARGO 177 $ 1,470.00
Sell some of these so as not to increase your tax bracket, and repeat each year until you're completely diversified.
nedsaid wrote:
Sun Oct 08, 2017 10:13 am
I am sort of a stock jock myself, having owned individual stocks since 1988. I have de-emphasized their role in my portfolio, in early 2000, my individual stocks were 45% of my portfolio; today, they are about 12.5%. I also have indexed a good portion of my portfolio too. I really have enjoyed individual stock ownership but it does take some time. Over the years, I have about matched the market performance, depending on when I peek.
I am sort of a stock jock myself, having owned individual stocks since 19xx. I have de-emphasized their role in my portfolio, in early 2000, my individual stocks were 100% of my portfolio; today, they are about 50%. I also have indexed a good portion of my portfolio too. I really have enjoyed individual stock ownership but it does take some time. Over the years, I have about matched the market performance, depending on when I peek.

BTW, I've wondered if I should have bit the tax bullet years ago. Let's say 10-20 years ago, I had $10,000 in single stock (like AAPL or GE or MCD), cost basis $2000, and I'd have to pay a high tax rate. Going forward for next 10-20 years, stock matches market growth to $50k (minus tax drag). Is the diversification worth the tax drag?
Last edited by inbox788 on Sun Oct 08, 2017 11:02 am, edited 1 time in total.

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nedsaid
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Re: Should I keep my Stocks?

Post by nedsaid » Sun Oct 08, 2017 10:57 am

Inbox788, have you calculated the returns from your individual stocks? I found a few months ago that I could tweak a Quicken report to do this for me. I would be curious how you have done.
A fool and his money are good for business.

inbox788
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Re: Should I keep my Stocks?

Post by inbox788 » Sun Oct 08, 2017 11:44 am

nedsaid wrote:
Sun Oct 08, 2017 10:57 am
Inbox788, have you calculated the returns from your individual stocks? I found a few months ago that I could tweak a Quicken report to do this for me. I would be curious how you have done.
It wouldn't be meaningful. I've only kept the winners, and don't include the winners and losers I sold (survival bias). Overall, single stock holdings are probably beating the market by a little bit, almost doubling in the last 5 years, but the calculation is confounded by additions and withdrawals. I've sold off a little to diversify, but also bought some (ESPP). One account only has a few shares of FB, so are you interested in how it did this year (50% YTD) or last 5 years (700%)? In any case, I'm getting rid of it, and not parlaying it on another horse, and actually it's earmarked to be donated for double tax benefit.

I recently looked at my 401k and the accounted generated YTD return was around 12% if I recall correctly. It should match the return of 30% BND/45% VTI/25% VXUS, but I never really checked the math. My portfolio has very high correlation with the market so I seldom look, except once in a while to check that things haven't diverged.

BTW, around 2014/5, I sold some FXI only to see it go up 20% :annoyed . A year later, it not only fell back but was down 20% :D At the same time, I also sold DLR, which like the market didn't do much during the year, but went up 50% the following year :annoyed . You win some, you lose some. But these sales were done in BH style, for diversification and tax avoidance reasons, and the timing was need based.

https://finance.google.com/finance?chdn ... jAGE2YjQBw

JW-Retired
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Re: Should I keep my Stocks?

Post by JW-Retired » Sun Oct 08, 2017 12:21 pm

jsm1708 wrote:
Sat Oct 07, 2017 7:08 pm
I am just trying to understand why EJ advisors recommend putting half of your money in mutual funds and half in individual equities. Maybe some can answer that as well.
We see lots of EJ deserter portfolios but Individual equities are fairly unusual. It's probably just this particular adviser's twist on making investing look very very complicated so you won't get any silly notions about being able to do it yourself. Every EJ mutual fund portfolio we see here seems to have at least 25, and going on up to 60 different funds. No mortal could understand such a mess. This strategy is so consistent it must be taught to all the EJ advisors. 5 or 6 funds would be plenty for most Bogleheads.

This also makes it easier and less visible to churn funds, thereby collecting more purchase loads. All they get churning stocks is the trading fee, did they do very much of that? How many mutual funds did they have you in before you left? I'm guessing 20?
JW
ps: As to keeping your stocks I wouldn't. Until recently, when I gave away my last winners to the kids, I've owned some stocks since the 70's. I don't know if the portfolio did better or worse than the funds of the day, but it was definitely more of a pain.
Retired at Last

jsm1708
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Re: Should I keep my Stocks?

Post by jsm1708 » Sun Oct 08, 2017 3:47 pm

JW-Retired wrote:
Sun Oct 08, 2017 12:21 pm
jsm1708 wrote:
Sat Oct 07, 2017 7:08 pm
I am just trying to understand why EJ advisors recommend putting half of your money in mutual funds and half in individual equities. Maybe some can answer that as well.
We see lots of EJ deserter portfolios but Individual equities are fairly unusual. It's probably just this particular adviser's twist on making investing look very very complicated so you won't get any silly notions about being able to do it yourself. Every EJ mutual fund portfolio we see here seems to have at least 25, and going on up to 60 different funds. No mortal could understand such a mess. This strategy is so consistent it must be taught to all the EJ advisors. 5 or 6 funds would be plenty for most Bogleheads.

This also makes it easier and less visible to churn funds, thereby collecting more purchase loads. All they get churning stocks is the trading fee, did they do very much of that? How many mutual funds did they have you in before you left? I'm guessing 20?
JW
ps: As to keeping your stocks I wouldn't. Until recently, when I gave away my last winners to the kids, I've owned some stocks since the 70's. I don't know if the portfolio did better or worse than the funds of the day, but it was definitely more of a pain.
Yes he had me in about 18 mutual funds. I'll be eternally grateful for finding this website while trying to understand the fees I was paying. Did you look at the Vanguard funds I chose? ( I do not pay for an advisor ) I have been seeing a lot of Bogleheads saying they put their money in VTSAX, VTIAX, VTSMX, VBMFX and VBTLX. The only one of the five that I invested in was VBMFX.

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Re: Should I keep my Stocks?

Post by JW-Retired » Sun Oct 08, 2017 6:07 pm

jsm1708 wrote:
Sun Oct 08, 2017 3:47 pm
Yes he had me in about 18 mutual funds. I'll be eternally grateful for finding this website while trying to understand the fees I was paying. Did you look at the Vanguard funds I chose? ( I do not pay for an advisor ) I have been seeing a lot of Bogleheads saying they put their money in VTSAX, VTIAX, VTSMX, VBMFX and VBTLX. The only one of the five that I invested in was VBMFX.
These Bogleheads are really only suggesting 3 funds. VTSAX & VTSMX are the same Total US market stock funds but with a slightly lower ER for the admiral version VTSAX, if you invest at least $10k in it. If you can't afford that, VTSMX only requires a $3k investment and if/when it grows to $10k it will be promoted to VTSAX. The same thing applies to the 2 total bond mkt funds VBMFX and VBTLX, you only need one of them. These are long term bonds and lots of us prefer intermediate term bonds instead. VTIAX is a total international fund. So this is a 3 fund portfolio........... total US, total international, and some US bonds. To compare, Vanguard Target Retirement funds are now a 4 fund portfolio in that they added an international bond fund to this a couple of years ago.

You chose $70K in VFIAX (SP500-admiral), $30K in VIMAX(mid cap adm, $20K in VFWAX (all world ex US), $10K VEMAX(emerg mkts), $5K in VEURX(EUR stk index) and $5K in VBMFX (total US bond). Your US lacks small cap stocks so it doesn't fully cover the whole US market. More than a few investors tilt toward even more small cap stocks since they think these have more potential to contain the next huge winner like google, apple, and amazon in their infancy. About 8 parts of VFIAX to 2 parts of the VEXAX extended market fund (aka completion index) covers the Total US stock market.

Didn't know it until googling here just now, but VFWAX has a slight difference from VTIAX total international in that VFWAX doesn't have any foreign small cap stocks in it.

If you think you might want to change things to more exactly meet the Boglehead philosophy of investing in the whole market, please say so and you will hopefully get more precise specific suggestions. Since these are in an IRA there will be no tax consequences to making changes. I would do it.

Welcome to the Forum!
JW
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jsm1708
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Re: Should I keep my Stocks?

Post by jsm1708 » Mon Oct 09, 2017 6:14 am

JW-Retired wrote:
Sun Oct 08, 2017 6:07 pm
jsm1708 wrote:
Sun Oct 08, 2017 3:47 pm
Yes he had me in about 18 mutual funds. I'll be eternally grateful for finding this website while trying to understand the fees I was paying. Did you look at the Vanguard funds I chose? ( I do not pay for an advisor ) I have been seeing a lot of Bogleheads saying they put their money in VTSAX, VTIAX, VTSMX, VBMFX and VBTLX. The only one of the five that I invested in was VBMFX.
These Bogleheads are really only suggesting 3 funds. VTSAX & VTSMX are the same Total US market stock funds but with a slightly lower ER for the admiral version VTSAX, if you invest at least $10k in it. If you can't afford that, VTSMX only requires a $3k investment and if/when it grows to $10k it will be promoted to VTSAX. The same thing applies to the 2 total bond mkt funds VBMFX and VBTLX, you only need one of them. These are long term bonds and lots of us prefer intermediate term bonds instead. VTIAX is a total international fund. So this is a 3 fund portfolio........... total US, total international, and some US bonds. To compare, Vanguard Target Retirement funds are now a 4 fund portfolio in that they added an international bond fund to this a couple of years ago.

You chose $70K in VFIAX (SP500-admiral), $30K in VIMAX(mid cap adm, $20K in VFWAX (all world ex US), $10K VEMAX(emerg mkts), $5K in VEURX(EUR stk index) and $5K in VBMFX (total US bond). Your US lacks small cap stocks so it doesn't fully cover the whole US market. More than a few investors tilt toward even more small cap stocks since they think these have more potential to contain the next huge winner like google, apple, and amazon in their infancy. About 8 parts of VFIAX to 2 parts of the VEXAX extended market fund (aka completion index) covers the Total US stock market.

Didn't know it until googling here just now, but VFWAX has a slight difference from VTIAX total international in that VFWAX doesn't have any foreign small cap stocks in it.
If you think you might want to change things to more exactly meet the Boglehead philosophy of investing in the whole market, please say so and you will hopefully get more precise specific suggestions. Since these are in an IRA there will be no tax consequences to making changes. I would do it.
Welcome to the Forum!
JW
Your reply is exactly the information I was looking for! You may not remember, but six months ago you helped me with my move to Vanguard from Edward Jones. So I can't thank you enough for the time you have given me.

As far as my initial choices upon moving to Vanguard, I should have done more research on this site before making my choices. My choices were from an article I stumbled across that stated, " Warren Buffet says put your money in these funds in Vanguard and forget them". I even modified the choices of that article and you see what I got, a mess. Now after focusing solely on Boglehead I see, and understand, the three fund strategy and its effectiveness. So yes, I am looking for specific suggestions on those three, or four, funds.

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Re: Should I keep my Stocks?

Post by JW-Retired » Mon Oct 09, 2017 10:55 am

jsm1708 wrote:
Mon Oct 09, 2017 6:14 am
Now after focusing solely on Boglehead I see, and understand, the three fund strategy and its effectiveness. So yes, I am looking for specific suggestions on those three, or four, funds.
Sorry to complicate things but we need more information to do this right. We shouldn't be looking at just one account in isolation. You must decide on the percentage of bonds or other fixed income type funds you want in your overall portfolio, your overall equities/fixed income ratio "asset allocation (AA)". AA across all accounts is the driver. You have almost no bonds now in the Vanguard account, what's in the 401k?.... any other accounts? In addition to that, we know Vanguard's costs are low but to coordinate with the 401k we/you need to know it's fund options and their expense ratios to know how to get the lowest overall expense for an overall AA. For example, often the 401k may have a low cost stock fund but only a high cost bond fund, so you would want to put all your bonds at Vanguard.

Can you back up and provide info on all your accounts in something like Laura's format below?
viewtopic.php?f=1&t=6212
JW
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Re: Should I keep my Stocks?

Post by jsm1708 » Mon Oct 09, 2017 3:29 pm

Ok I will do my homework today and post in that form later. Thanks again!!

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nedsaid
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Re: Should I keep my Stocks?

Post by nedsaid » Mon Oct 09, 2017 10:35 pm

inbox788 wrote:
Sun Oct 08, 2017 11:44 am
BTW, around 2014/5, I sold some FXI only to see it go up 20% :annoyed . A year later, it not only fell back but was down 20% :D At the same time, I also sold DLR, which like the market didn't do much during the year, but went up 50% the following year :annoyed . You win some, you lose some. But these sales were done in BH style, for diversification and tax avoidance reasons, and the timing was need based.
Yes, you ran into the dreaded "Nedsaid effect" or your sacrifice to the trading Gods. That is tough to take, seeing what you sold zoom and what you bought lag. In my opinion, incorrect sell/buy decisions are the biggest drag on portfolio performance. This is why I hate even to rebalance. My estimate is that my incorrect sell/buy decisions happen at a ratio of 2:1 or even 3:1. I do not like to sell.

In some cases, I made sell/buy decisions for higher level reasons such as additional diversification. Applied Materials is a great example of this. I sold 1/3 of my original investment, sold another 1/3, and the darned thing keeps going up. I still have 1/3 of my original purchase. I don't allow my individual stocks to get too large of a proportion of my portfolio plus I have gotten burned a couple times with tech stocks riding them up and riding them down again.
A fool and his money are good for business.

jsm1708
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Re: Should I keep my Stocks?

Post by jsm1708 » Tue Oct 10, 2017 9:24 pm

Emergency funds: 7 months
Debt: Mortgage of $102K with 18 years remaining @ 3.875% rate
Future debt: High school senior child will have college loans beginning next year
Filing Status: Head of Household
Tax Rate: 25% Federal, 5.75% State
State of Residence: NC
Age: 47
Desired Asset allocation: ?% stocks / ?% bonds ( undecided )
Desired International allocation: ?% of stocks ( undecided )

total portfolio: $500K
portfolio includes $40K pension ( company puts in an amount equal to 5% of gross pay per year )

Current retirement assets

Taxable
0% cash for investing

His 401k: $150k
Contributing 10% before taxes and 4% to ROTH
19% State Street US Bond Index Non-Lending Series Fund Class A Shares ER:0.04% /25% of future investments
29% State Street S&P 500 Index Non-Lending Series Fund Class A Shares ER: 0.01% /25% of future investments
18 % State Street US Extended Market Index Non-Lending Series Fund; Class C Shares ER: 0.05% / 25% of future investments
19% State Street International Index NL Series Fund Class A Shares ER: 0.09% / 25% of future investments
15% GSK Stock Fund ER: 0.02%
Company match: 4% for 4% dollar for dollar, plus 2% automatic company contribution. ( I put in 4% company puts in 6% ) or ( I put in 14% the company puts in 6% )

His Roth IRA at Vanguard: None
His Rollover IRA at Schwab: None
Available funds

Funds available in his 401(k) ( not already listed above )
Vanguard target funds from 2060 to 2015
Vanguard target retirement income
MetWest total return bond
State Street US Total Market
PZENA International (X-US) Equity
BlackRock T-Fund Money Market
Stable Value Fund
Dodge & Cox Large Cap US Equity
CRM Small/Mid Cap US Equity

IRA at Vanguard:

Stocks
1. APPLE 135 $ 5,602.00
2. CHEVERON 70 $ 1,278.00
3. DOMINION 54 $ 27.00
4. EMERSON ELEC. 224 $ 2,252.00
5. J&J 71 $ 1,068.00
6. MCDONALDS 25 $ 1,095.00
7. MERCK 81 $ 211.00
8. MDLZ 141 $ -303.00
9. NOVARTIS 62 $ 282.00
10. PEPSICO 57 $ 230.00
11. PNC BANK 78 $ 3,440.00
12. PRAXAIR 33 $ 771.00
13. SCHLUMBERGER 81 $ -701.00
14. THOMSON REUT 130 $ 648.00
15. TJMAX 67 $ -94.00
16. US VANCORP 141 $ 1,528.00
17. VERIZON 101 $ -271.00
18. VISA 96 $ 2,274.00
19. WELLS FARGO 177 $ 1,470.00
Funds at Vanguard
I put $70K in VFIAX, $30K in VIMAX, $20K in VFWAX, $10K VEMAX, $5K in VEURX and $5K in VBMFX.


Questions:
1. How do I decide my AA?

2.What is a taxable account?

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Re: Should I keep my Stocks?

Post by Grt2bOutdoors » Tue Oct 10, 2017 10:09 pm

^ You decide your asset allocation based on need, willingness and ability to take risk.
Assume you select a 70/30 with a 30% allocation to international equities, that would be in the realm of someone your age. However, the ability to SWAN (sleep well at night) should not be discounted. If the equities market were to decline by 50% tomorrow, one who holds a 70/30 mix would encounter a decline in portfolio value of roughly 34% (at least temporarily, we hope). Can you sleep well at night if that were to occur? If you continue to remain employed, you can continue purchasing shares on sale, time should reverse the losses - the question is how much time? If it recovers by the time you are nearing retirement, great, if not you may have to save more, spend less or delay retirement.

Is your pension a cash balance plan? It sounds like it from description.
Not recommended to hold more than 5% of assets (preferably none) in company stock. The risk you take is undiversified (concentrated), if anything happens to either company and/or pharma you may find your 15% is now worth 5% or less. The worst scenario is an Enron or Bear Stearns event, where you lose 98% or more of investment. An investment in a diversified fund permits the risk to be spread out amongst hundreds if not thousands of different companies, the chances of all industries and companies going bad at once is greatly reduced.

Taxable account - an account that is held outside of IRS recognized tax-deferred identifiable assets designated for retirement purposes only. Example of a retirement account - IRA, SEP-IRA, 401(k), 403(b), variable annuities, tax-deferred annuities. Examples of a taxable account - brokerage account held outside of a retirement plan such as IRA, a regular mutual fund account held at Vanguard or any other mutual fund company, a savings account at local bank, a certificate of deposit at local bank held outside of an IRA, etc.
"One should invest based on their need, ability and willingness to take risk - Larry Swedroe" Asking Portfolio Questions

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Re: Should I keep my Stocks?

Post by JW-Retired » Wed Oct 11, 2017 9:22 am

jsm1708 wrote:
Tue Oct 10, 2017 9:24 pm
Questions:
1. How do I decide my AA?

2.What is a taxable account?
Deciding your AA the Boglehead way always been a murky process to me. You do definitely want to have enough bonds in your portfolio that you won't freak out and sell stocks low if when the next financial crisis happens and your stocks drop to a half or a third of their value. Ideally you should be buying more when that happens, but at the very least you just can't bail out of stocks near the bottom like more than a few did in 2008/09.

Right now you appear to have just the 25% bonds in your 401k. I do think at least 20% overall would be advisable at 47 but it's highly personal. That is about double the bonds you own now.

FYI, this link has an old poll with Bogleheads AA versus age (new polls are now banned). There is a very wide AA spread at your age.
http://www.bogleheads.org/forum/viewtop ... 2#p1224012

I was about to say the great news is you have a very good 401k with low costs but.......... what does the "Non-Lending Series Fund Class A Shares" mean in your fund choices? Class A in retail mutual funds means a front load and that would not be good. The ER numbers for these choices might be too good to be all the expense? Could you investigate, and also add the ERs/expenses for the other funds?

All your bonds should easily fit in there and/or in your IRA. If/when you get a taxable account, note that their taxable bond earnings are taxed at higher rate than qualified stocks dividends and cap gains, so you wouldn't want to hold taxable bonds in taxable. Are you maxing your 401k contribution at $18k ($24k when you are 50)? You probably don't need a taxable account until you are doing that.
JW
Last edited by JW-Retired on Wed Oct 11, 2017 11:30 am, edited 3 times in total.
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CyclingDuo
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Re: Should I keep my Stocks?

Post by CyclingDuo » Wed Oct 11, 2017 9:50 am

jsm1708 wrote:
Tue Oct 10, 2017 9:24 pm

Questions:
1. How do I decide my AA?
https://personal.vanguard.com/us/insigh ... llocations

Those portfolio allocations give you an idea of risk/reward.
jsm1708 wrote:
Tue Oct 10, 2017 9:24 pm
2.What is a taxable account?
This would be money available for you to invest outside of your tax advantaged retirement accounts (401K/403b/457/HSA/IRA, as well as the after tax ROTH IRA. You can save and invest money in a taxable account (be it a brokerage account, or mutual fund account, or both) at Vanguard, Fidelity, Schwab, ETrade, Betterment, Acorns, etc... .

Money invested in taxable will want to be socked away in tax efficient investments to lower the amount of dividends you will be paying tax on as it is "booked by the IRS" as ordinary income each tax year and taxed at your income rate. Example of a stock considered tax efficient would be Berkshire Hathaway which pays no dividends, so investors are only taxed when they sell shares which they would then pay capital gains (usually at a lower rate than their ordinary income tax level). Shares in growth stocks that do not pay dividends would be another example, so it is share price appreciation only that one would be taxed on when the shares are sold. Examples of more tax efficient Vanguard funds would be Total Stock Market, Total International, as well as Municipal Bond Fund/ETF's. You would pay taxes on the dividends received for the equity funds, but the funds are very tax efficient compared to others such as actively managed funds that may have a stream of capital gains every quarter/year on top of dividends.

There is a suggested hierarchy:

https://www.bogleheads.org/wiki/Priorit ... nvestments

Taxable investing can also be used for goals, plans for things that you expect to occur before retirement - so you would want to have a pot of money available to purchase that new roof in 20 years, or new car in 10 years, or 30th Wedding Anniversary Vacation Trip to Transylvania, or whatever one has on their horizon. Often times, a windfall occurs via inheritance and a sudden pot of money will end up in one's taxable investment account. Or, after one has maxed out their pre-tax contributions to 401k, HSA, and after tax (if they qualify) Roth IRA and still has some peanuts left over to invest, then that savings could go into taxable investments. In other words, the majority of our life takes place before retirement, so having the funds to enjoy the majority of our life may or may not rank high on one's quality of life scale. This may impact taxable investing/saving. I know it does in our household.

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Posts: 21
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Re: Should I keep my Stocks?

Post by jsm1708 » Wed Oct 11, 2017 2:16 pm

Grt2bOutdoors wrote:
Tue Oct 10, 2017 10:09 pm
^ You decide your asset allocation based on need, willingness and ability to take risk.
Assume you select a 70/30 with a 30% allocation to international equities, that would be in the realm of someone your age. However, the ability to SWAN (sleep well at night) should not be discounted. If the equities market were to decline by 50% tomorrow, one who holds a 70/30 mix would encounter a decline in portfolio value of roughly 34% (at least temporarily, we hope). Can you sleep well at night if that were to occur? If you continue to remain employed, you can continue purchasing shares on sale, time should reverse the losses - the question is how much time? If it recovers by the time you are nearing retirement, great, if not you may have to save more, spend less or delay retirement.

Is your pension a cash balance plan? It sounds like it from description.
Not recommended to hold more than 5% of assets (preferably none) in company stock. The risk you take is undiversified (concentrated), if anything happens to either company and/or pharma you may find your 15% is now worth 5% or less. The worst scenario is an Enron or Bear Stearns event, where you lose 98% or more of investment. An investment in a diversified fund permits the risk to be spread out amongst hundreds if not thousands of different companies, the chances of all industries and companies going bad at once is greatly reduced.

Taxable account - an account that is held outside of IRS recognized tax-deferred identifiable assets designated for retirement purposes only. Example of a retirement account - IRA, SEP-IRA, 401(k), 403(b), variable annuities, tax-deferred annuities. Examples of a taxable account - brokerage account held outside of a retirement plan such as IRA, a regular mutual fund account held at Vanguard or any other mutual fund company, a savings account at local bank, a certificate of deposit at local bank held outside of an IRA, etc.
To be honest, I'm not sure if my pension is a cash balance plan or not simply because I'm not sure what that is. :( I can find out I'm sure. As far as my 15% in company stock, that was me trying to time the market, something I now know not to do after being educated by this website. A few years ago I had very little company stock, but the inside knowledge I had of new drug launches made me believe the stock was going to boom. That has not panned out, and I've been waiting for the stock to recover to my purchase price to get back out. Thank you for the explanation of the AA. I am not a panic kind of guy when it comes to the market. I just ride it out and have never sold during a correction, so maybe a 70/30 mix would work for me. I see exactly what you're saying about the timing of a decline and my ability to retire. Thanks for your help.

jsm1708
Posts: 21
Joined: Mon Feb 20, 2017 11:39 pm

Re: Should I keep my Stocks?

Post by jsm1708 » Wed Oct 11, 2017 2:51 pm

JW-Retired wrote:
Wed Oct 11, 2017 9:22 am
jsm1708 wrote:
Tue Oct 10, 2017 9:24 pm
Questions:
1. How do I decide my AA?

2.What is a taxable account?
Deciding your AA the Boglehead way always been a murky process to me. You do definitely want to have enough bonds in your portfolio that you won't freak out and sell stocks low if when the next financial crisis happens and your stocks drop to a half or a third of their value. Ideally you should be buying more when that happens, but at the very least you just can't bail out of stocks near the bottom like more than a few did in 2008/09.

Right now you appear to have just the 25% bonds in your 401k. I do think at least 20% overall would be advisable at 47 but it's highly personal. That is about double the bonds you own now.

FYI, this link has an old poll with Bogleheads AA versus age (new polls are now banned). There is a very wide AA spread at your age.
http://www.bogleheads.org/forum/viewtop ... 2#p1224012

I was about to say the great news is you have a very good 401k with low costs but.......... what does the "Non-Lending Series Fund Class A Shares" mean in your fund choices? Class A in retail mutual funds means a front load and that would not be good. The ER numbers for these choices might be too good to be all the expense? Could you investigate, and also add the ERs/expenses for the other funds?

All your bonds should easily fit in there and/or in your IRA. If/when you get a taxable account, note that their taxable bond earnings are taxed at higher rate than qualified stocks dividends and cap gains, so you wouldn't want to hold taxable bonds in taxable. Are you maxing your 401k contribution at $18k ($24k when you are 50)? You probably don't need a taxable account until you are doing that.
JW
The "Non-lending Series Fund Class A Shares" was a new one on me too. I only stumbled across that while looking for the ticker symbols for my funds, which I never was able to find. (kinda strange) The fund names are not that complicated on the list I see on my 401K page. It's only when I begin to dig deeper that I found that "Legal name". Here is what I just found when I looked up

State Street S&P 500 Equity Index



Expenses Per $1,000 Investment
$0.10
Expense Date
06-01-2017

Expenses Per $1,000 Investment
$0.10
$0.10
Represents the gross and net annual expenses for a hypothetical investment of $1,000. The Net Expense is what you ultimately pay per $1,000 invested.
Total Expense Ratio
0.01%
0.01%
The total annual cost associated with managing and operating the fund.
Operating Expenses
0.01%
0.01%
The cost associated with operating the fund, including investment advisory and management fees and additional expenses such as custodian, legal, audit fees, and other operational expenses incurred by the investment manager
I don't see anything about front loads. I will dig deeper and see if I can figure that out. Here are the other available funds ER's that I am not invested in.
Vanguard 2030 0.07%
Vanguard 2035 0.07%
MetWest 0.38%
SS Total Market 0.07%
Pzena Inter 0.70%
BlackRock 0.17%
Stable Value 0.42%
Dodge & Cox 0.41%
CRM Small/Mid 0.48%

Grt2bOutdoors
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Re: Should I keep my Stocks?

Post by Grt2bOutdoors » Wed Oct 11, 2017 3:42 pm

^There is no load or sales charge associated with the Series A class of shares for the State Street Non-Lending S&P 500 Index fund.
Literature found indicates the total cost of fund is .03 - that is pretty darn low and representative of institutional level pricing. If you are using this fund, i'd continue to hold it, it's about as cheap as you can get though Vanguard or Blackrock could be about .01 cheaper (maybe).
"One should invest based on their need, ability and willingness to take risk - Larry Swedroe" Asking Portfolio Questions

tesuzuki2002
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Re: Should I keep my Stocks?

Post by tesuzuki2002 » Wed Oct 11, 2017 6:49 pm

jsm1708 wrote:
Sat Oct 07, 2017 3:51 am
I am 47 and have a 401K with my employer with a current value of $150K. I also have a pension with my employer with a current balance of $40K. I finally moved my separate IRA from Edward Jones about 6 months ago to Vanguard. I liquidated the EJ mutual funds, which were $140K , before moving to Vanguard. I put $70K in VFIAX, $30K in VIMAX, $20K in VFWAX, $10K VEMAX, $5K in VEURX and $5K in VBMFX. My EJ IRA also contained individual stocks that I simply transferred from EJ to Vanguard. Now I'm wondering if I should begin selling my individual stocks and moving that money into those previously mentioned Vanguard funds. Especially the bond funds because I am so out of balance. The total balance of these stocks is approximately $143K. I would like opinions on this please.

I got involved in the market 9 years ago... Spent many years buying individual stocks and have been pretty happy with my choices... Around 2014 I decided I wanted to go all index more less. Atleast with 90% ish of my investments. So I have been over time selling my stocks the past few years.. I don't want to load all those gains in a single tax year. Moving them into Indexs... Happy shifting money... Markets are hitting all time highs again.

cheers!

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Posts: 6365
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Re: Should I keep my Stocks?

Post by JW-Retired » Thu Oct 12, 2017 8:12 am

jsm1708 wrote:
Wed Oct 11, 2017 2:51 pm
State Street S&P 500 Equity Index

Expenses Per $1,000 Investment
$0.10
Expense Date
06-01-2017

I don't see anything about front loads. I will dig deeper and see if I can figure that out. Here are the other available funds ER's that I am not invested in.
Vanguard 2030 0.07%
Vanguard 2035 0.07%
MetWest 0.38%
SS Total Market 0.07%
Pzena Inter 0.70%
BlackRock 0.17%
Stable Value 0.42%
Dodge & Cox 0.41%
CRM Small/Mid 0.48%
Appears the "Class A" part in the State Street fund is just a weird name and doesn't signal a load at all. Such a thing would be nonsensical given all these other low fee investment choices you have.

Between your 401k and the Vanguard IRA, it looks like you can get to your overall AA lots of different ways at very low cost. You only need to pick an AA.
JW
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jsm1708
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Re: Should I keep my Stocks?

Post by jsm1708 » Thu Oct 12, 2017 1:24 pm

Grt2bOutdoors wrote:
Wed Oct 11, 2017 3:42 pm
^There is no load or sales charge associated with the Series A class of shares for the State Street Non-Lending S&P 500 Index fund.
Literature found indicates the total cost of fund is .03 - that is pretty darn low and representative of institutional level pricing. If you are using this fund, i'd continue to hold it, it's about as cheap as you can get though Vanguard or Blackrock could be about .01 cheaper (maybe).
Yes, I checked into it today and there are no front loads. I was told the low expense rates were part of my overall benefits.

jsm1708
Posts: 21
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Re: Should I keep my Stocks?

Post by jsm1708 » Thu Oct 12, 2017 1:29 pm

Appears the "Class A" part in the State Street fund is just a weird name and doesn't signal a load at all. Such a thing would be nonsensical given all these other low fee investment choices you have.

Between your 401k and the Vanguard IRA, it looks like you can get to your overall AA lots of different ways at very low cost. You only need to pick an AA.
JW
[/quote]

I guess that's the most pressing task I face. Thanks again.

jsm1708
Posts: 21
Joined: Mon Feb 20, 2017 11:39 pm

Re: Should I keep my Stocks?

Post by jsm1708 » Thu Oct 12, 2017 2:43 pm

Do you have some free trades you have not used/used up? Call your broker for more information; I am sure they can explain what you'd be paying (or not paying).


Did I receive free trades when I came to Vanguard? I just sold one of my stocks today and was charged $7. Beside the $7 in parentheses it said "25 discounted trades available". Am I not using a benefit I have? If so, how do I use it? I am not paying for an advisor and you said in the comment above to call my broker. Is this the guy who helped me transfer my account from EJ to Vanguard?

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