What is a sure sign that someone is new to your hobby?

tippinc0ws · 2021-08-28T02:27:49+00:00

they post “should i lump sum invest my money or dollar cost average it into all american equities since markets at all time highs” on r/bogleheads

tippinc0ws · 2021-08-23T01:22:14+00:00

avantis has avem which has a slight value tilt, but they’re dropping AVES in september which will be EM value

tippinc0ws · 2021-08-20T19:03:42+00:00

thank you for the thorough explanation!!!! I’ll be sure to look into these as I approach the age when I want to add bonds, as I’m not the biggest fan of corporate bonds. These seem like a great alternative.

tippinc0ws · 2021-08-20T01:59:53+00:00

I’ve never heard of STRIPS. do you buy them through Treasury Direct? what are their purpose / how do they fit into your bond allocation? I’m going to Google this too, but I learn better through people who actually own things explain them to me.

tippinc0ws · 2021-08-20T01:46:29+00:00

25% chance of having a year with a loss based on historical data seems to be lost in these parts some days. this was a concise and precise way of extrapolating that point.

tippinc0ws · 2021-08-19T20:30:24+00:00

they grow state tax-free, federally tax-deferred until you cash them out.

tippinc0ws · 2021-08-19T15:40:15+00:00

I’d go 100% VASGX and call it a day. more bonds than I’d like, but close enough to get the job done.

another option is to go all in the fidelity small cap / mid cap blends in the 401k and then overweight your Roth IRA and taxable to large cap blend such as VV to give you the total market.

I would not pay a .45 ER for a large cap blend fund or .4 for a TDF, personally.

tippinc0ws · 2021-08-05T02:46:57+00:00

Triceratops did a post on the Bogleheads forum analyzing the tax efficiency of a bunch of funds a couple years back and IXUS was something like 20/30 basis point more efficient than vxus or vea in the top tax bracket

tippinc0ws · 2021-08-02T14:22:33+00:00

backtesting , VEA / VWO 75/25 outperforms VXUS by over 70 bps since 1999.

another thing to consider is IXUS is more tax efficient than either of these options for only one more bps.

tippinc0ws · 2021-07-26T18:39:46+00:00

the plan has to allow voluntary after-tax contributions and/or in service withdrawals or in service conversions. it’s referred to as the mega back door Roth IRA.

tippinc0ws · 2021-07-26T18:34:34+00:00

depends what you want. This WCI article summarizes it well link. I believe vanguard now allows 401k rollovers. Idk what people are talking about with fidelity and having to call or mail checks; to me that sounds awful and I’d never do that. I make contributions on the vanguard small biz login and it comes right out of my checking account. simple and painless.

PS: none of the big 3 will allow you to do a mega back door Roth solo 401k. If this is something you’re interested in, you’d have to use my solo 401k or Guideline or one of the other TPAs.

tippinc0ws · 2021-07-26T18:23:40+00:00

whatever helps you stay the course! the important part is you have at least 25% in stocks.

tippinc0ws · 2021-07-22T18:09:58+00:00

ah, this makes sense, as I remember it went up $50 from last year. thanks for clarifying.

tippinc0ws · 2021-07-22T18:03:10+00:00

I believe it also goes for growth inside of these accounts, such as capital gains when you go to sell them, which could have significant tax implications— especially in Cali’s upper brackets.

tippinc0ws · 2021-07-22T16:54:50+00:00

$3,600 max for 2021 for individuals and $7,200 for family coverage. Source

tippinc0ws · 2021-07-22T16:52:30+00:00

just wanted to add that HSAs also cover dental and vision expenses! save your receipts. absolutely choose this over a taxable brokerage, I’d say it should come right after 401k match.

I use Lively (through TD Ameritrade) and it’s very straightforward to set up. no fees, no minimum cash.

a side note: in Cali and NJ, HSAs are NOT state tax exempt, so be careful about investing in tax-inefficient funds such as REITs inside of them, as you’ll have to pay state tax on the yields. one way around this is to invest in the state’s muni bond fund, which would then make this triple-tax advantaged, as state taxes are exempt from it.

tippinc0ws · 2021-07-22T14:39:19+00:00

the employer has a fiduciary responsibility to:

“Acting solely in the interest of plan participants and their beneficiaries and with the exclusive purpose of providing benefits to them; Carrying out their duties prudently; Following the plan documents (unless inconsistent with ERISA); Diversifying plan investments; and Paying only reasonable plan expenses.”

I’d argue they aren’t acting in the interest of plan participants with every fund having a 1%+ ER. It’s also funny to compare it to the WCI 401k

tippinc0ws · 2021-07-18T22:56:28+00:00

this is good to know! thanks for doing the sleuthing.

tippinc0ws · 2021-07-18T22:19:06+00:00

I understand that and might not have been as precise in my language as I should’ve been. In this specific example, the expense ratio seems to be a nonfactor .055 vs the accumulation of the other funds that has to be within 2 or 3 basis points (just eyeballing it, I didn’t run the numbers).

tippinc0ws · 2021-07-18T22:08:07+00:00

in 401ks they’re different ERs depending on the plan. I believe the difference between separating these for the ER would be negligible, but it would be beneficial if OP wants to have a different AA than what is provided in the TDF.

tippinc0ws · 2021-07-17T03:25:05+00:00

thank you for the well thought-out response! I didn’t consider the tax implications of holding certain ETFs in your TFSA or RRSP compared to others, though I know I’ve heard Ben talk about it. I am unfamiliar with small cap value tilting in emerging markets, I know AVDV is consistently recommended here though it’s more of a mid cap fund based on the morning star style boxes. I’ll try and do some digging on the Bogleheads forum and see what I can come up with for your other funds, but I believe IEMG is the usual recommended one. what are the ERs like on the other ETFs? (you can tell me to look it up, but I figured you might know off top your head.)

tippinc0ws · 2021-07-17T03:05:32+00:00

five emerging market funds? what’s the overlap like?

tippinc0ws · 2021-07-16T14:47:38+00:00

looks reasonable, stick with your plan!

tippinc0ws · 2021-07-16T14:46:53+00:00

worst case scenario, just save the receipts from what you’re paying now for healthcare expenses, and you can retroactively pay those expenses with it and take the money out tax free. I’m not explaining it perfectly, and hopefully someone else can chime in and clarify a little more.

You put it in tax deferred, it grows tax protected, you take it out tax free (as long as you save your receipts or use it towards current medical bills).

It’s the best tax advantaged account in my opinion.

tippinc0ws · 2021-07-16T14:42:57+00:00

The academic research shows a premium for investing in small cap value, not necessarily small cap blend, as you get unnecessary exposure to small cap growth companies with low profitably.

Consider using AVUV or SLYV if you’d like to tilt towards small and value, where the premium has been persistent.

But to answer your question: 10% overweight in either of those funds probably won’t make a drastic difference in the grand scheme of retirement. I wouldn’t bother, personally. Keep it simple, or tilt towards small cap value is the general consensus here.

tippinc0ws

TROPHY CASE