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Everything posted by ScottO

  1. Hey Dan, thanks to both you and Scott for the discussion+information at 7am. Part of the best day since 1933: https://www.msn.com/en-us/money/markets/dow-soars-11percent-in-best-day-since-1933-as-stimulus-deal-nears/ar-BB11DCB1 Take Care!
  2. Teach and Retire Rich Ep. #104 is up: http://teachandretirerich.libsyn.com/market-volatility-questions-104 Good to hear the discussion.
  3. Yay, a taxable account buoy. If anyone wants to meet via Zoom during the day, let me know. I'm working from home/sheltering in place for the next few weeks.
  4. I've seen a few articles recommending splitting up investments during volatile times, but I doubt any of us really have a significant sum where it matters. It's largely a short term mental exercise to avoid feeling like you bought in on the wrong day. Even using something like the $6k max contribution won't really matter how/when you put it in the market, all that matters is it being there... keep putting your drops in the bucket. I just read up on that. Investopedia has some guidance, but I appreciate your input. Seems like it's just IRAs are taxable accounts that fall under the IRS wash sale magnifying glass.
  5. I found this guide years ago: https://www.physicianonfire.com/tax-loss-harvesting-vanguard/ It's pretty neat because it has step-by-step screenss. Our taxable account went from 50k down to 35k, but I need a refresher on the information regarding wash sales. I forget if you can't buy anything similar in all your accounts(taxable, Roth, 403b, 457). That would be a headache since I have regular monthly automatic contributions to a few of those. Another recent forum discussion on TLH: https://forum.mrmoneymustache.com/investor-alley/tax-loss-harvesting-rule-of-thumb/ (the internet is full of a bunch of right and wrong answers) If you have the spare cash to stash away, always be buying. Stick to your plan, DCA and you'll be ok.
  6. Motley Fool had a surprisingly good YouTube video on investing during a bear market: https://www.youtube.com/watch?v=ex8WR_1zLxE They really emphasized sticking with your original plan and focusing long term. Timing the market and seeking short term gains was really discouraged. Normally I don't tune into their stuff, because it feels like they are trying to sell advice. Dollar cost averaging and maintaining your asset allocation are good tips from that mymoneywizard article. Maybe I'll look at re-balancing after today.
  7. https://money.cnn.com/data/fear-and-greed/ https://money.cnn.com/data/afterhours/ https://finance.yahoo.com/ ^ for whatever reason I've been tuning into those sites to track the market and then I use Mint to track account balances. Even with a 90/10 portfolio and today's loses, my net worth is just back to what it was in Oct/Nov 2019. I felt fine then, feelin' pretty fine now. Major contributions haven't changed, but I am splitting up my Roth IRA contributions into four chunks(two already done). As much as I think I can identify a market bottom, I figured I would play it safe an invest the amount of money over a 3-4 month period. I haven't purchased individual stocks before, but I'm really thinking about a few companies. Everything I've invested so far is in index funds, so I already own those individual companies, but it would be neat to get a share of Berkshire stock for a Geico Insurance and See's Candy discounts 😛 Thanks for the previous posts about what you are saying to others. I need to listen to the recent podcasts - one of them seemed like it was in response to recent volatility. Focusing on the market and retirement accounts won't do anything besides generate anxiety. I try to remind myself that real world activities are the best use of my time and this other junk will sort itself out. Stay Healthy!
  8. What are the best ways you've found to keep others calm about their investments and explain why doing nothing is recommended? I've been an outspoken advocate for index investing for a few years, so a lot of coworkers and family are asking me what they should do right now. I could use some of your good one or two liners.
  9. That is a great video. "Reasons you should look for a financial pro" would be an interesting addition to this thread. There's a lot I feel confident doing on my own(choosing asset allocation, choosing investments, updating contribution amounts) during the accumulation phase, so paying an adviser for that doesn't make much sense. I'm sure later in life I'll have more complicated questions or pitfalls someone could help me avoid. Planning a retirement date by balancing pension, social sec and investment withdrawal income is fun right now(with years to go), but it'll become a more serious decision once I get old enough to do it. "What a financial pro can and can't do" would make a good side-by-side table. "Beat the market over long periods of time (can't)"
  10. Reddit could be another good space to create a 403bwise community.
  11. Alcohol content is probably too low.
  12. I will admit that it is still tough to watch account gains go from a high to a low so quickly. There are articles out there about this being the fastest correction ever, which is pretty unnerving, so I can understand why some people would want to get off the volatility roller coaster for a while. "Stay the course" is the best advice I have to cope. "Buy the dip" is the second best advice, but there's no guarantee the market won't dip even further. Maybe another good piece of advice would be to never look at and make decisions about your portfolio when gains are at a high or a low. I've been investing small amounts since I started working full time in 2001, but never kept to close of an eye on the accounts. I think I've lost more due to bad financial advisers than market activity. Opportunity cost loses are probably huge. We started contributing to retirement accounts aggressively in 2015, so we've had that easy ride up. Market looks like it'll close up ~4% today...
  13. We're contributing the same amount at the same allocation. I've read too many John Bogle books to do otherwise.
  14. It's more fun when you can play with the numbers in the cells and see values change - trying Google Docs: https://drive.google.com/file/d/1KnMX-B4heFDJKhWd1EvtOXVVmKKI3-0b/view?usp=sharing Spreadsheets help me understand numbers. The table of percentages is interesting, but I want to know how they relate to each other and affect an ending balance outcome. I don't use it to predict the future, it's more for determining how hard to kick my present self for not contributing more in the past 😋 ^ that calculator is pretty cool.
  15. Changed from xlsx to xls, maybe that'll help. (I messed up the Real Estate return in 2001 in the previous spreadsheet too - I'll re-up it.) I look at fees as a guaranteed loss. The S&P 500 is going to perform the same way if I'm paying 2%, 1%, or 0% - so why lose? Sometimes I feel like this callan chart is used to baffle beginning investors. Originally I was introduced to it as "the jelly bean chart." Ranking asset classes in a table isn't super useful. The lesson I get from it is that returns aren't predictable from year to year, so don't believe anyone who says they can avoid pitfalls, because at the same time they may be avoiding gains and charging you all the while for that bad advice. It seems best to buy and hold low cost index funds for a long period of time. When I started investing in my workplace 403b through American Funds I had a guy who put me in a bunch of mutual funds with 5.75% front loads and like 1% expenses - terrible. All the good that a financial advisor could do by keeping me on track with my contributions, shielding me from bad decisions, or managing my portfolio, was completely undone by fund placement choices. jellybean.xls
  16. Low fees are a pretty good solution. Created a spreadsheet to help interpret the chart (see attached.) I stuck in 3 yellow cells to play with: Starting Amount, Annual Contribution, Fees S&P 500, 10k starting, 12k contributions... 0% fee $706,351 ending bal 1% fee $631,872 ending bal 2% fee 566,105 ending bal Then I started to mess around with rebalancing annually and % contributions, but I should get back to work... jellybean.xlsx
  17. Using MS Excel or Google Sheets would be pretty cool if you have access to computer equipment. Compound interest calculators are kind of neat: D2 = F1*(1+F3/12)^(C2*12) D3 = (D2+$F$2)*(1+$F$3/12)^12 Age 63, Year 2065 = $812,381.17 I used to joke around that all of our lives were just math problems which were solvable in excel... but then people would call me a nerd 😋
  18. ^ You could get a spreadsheet going to help determine where it's cheaper to keep what you plan to invest. Vanguard and Pension2 are pretty close if you've got 36k chillin', but things get more expensive with Pension2 as your account balance gets higher.
  19. Roth IRA usage/allocation is a separate topic than what I originally wanted to discuss, but for some people the liquidity of a Roth IRA is important and could be what gets someone started investing. We all have different investment goals, time horizons, financial situations, etc. Yes, there are drawbacks to the idea of not maximizing the tax benefit on earnings and overall opportunity cost, but if you can make someone feel comfortable enough to get in the habit of regularly putting money into an account and watching that money grow(even at a lower rate of return) that's good. Perhaps they rebalance later if their financial situation changes and the idea of using the account as an emergency fund is no longer applicable(or proven to be incredibly disadvantageous on a forum they are a member of 😋.) https://www.thesimpledollar.com/investing/when-and-how-to-use-your-roth-ira-as-an-emergency-fund/ https://www.investopedia.com/articles/personal-finance/040714/how-use-your-roth-ira-emergency-fund.asp https://www.nerdwallet.com/blog/investing/use-roth-ira-emergency-fund/ https://www.bogleheads.org/wiki/Roth_IRA_as_an_emergency_fund https://www.fool.com/news/2004/10/14/roth-ira-as-emergency-fund.aspx We have an emergency fund with 3-6 months expenses in the bank earning 1.65% APY, but the idea that some of that could be used toward a Roth contribution is something to think about instead of the 2020 contribution being $0. Bogleheads says if you're going to do it, don't consider the emergency fund a part of your overall asset allocation. It seems like it just becomes a matter of where your emergency fund is located/housed. I could also fund our Roths with taxable money - play a shell game to fund all available retirement accounts without having the earned income.
  20. Alright, so Fidelity sounds like the best game in town for a 457 👍 Here's a look at all my holdings. Currently I don't feel too far from optimal in terms of asset allocation across accounts... (see attachment below) Since all the investments are in Vanguard funds, the only fee that was really bugging me was the .25% extra I pay for Pension2's administrative cost. The taxable account is an outlier that increases our stock allocation, but we aren't always contributing to it, so other accounts will outgrow it as a result of regular contributions. The majority of the management work is automated aside from transferring to the SDBA each month. So I'm probably 91% stock/9% bonds right now. My wife also has a 403(Fidelity), 401a(Fidelity) and a Roth IRA(Vanguard)... so many accounts... I think I did the SDBA just to have the (mostly) mirrored allocation across accounts. VTIAX wasn't available through Pension2, but it also opens up a ton more mutual funds. I've maxed the 403 for four years, the 457 for three years and Roth IRA for three years.
  21. I've read about the "whole portfolio" approach to allocation: https://www.bogleheads.org/wiki/Asset_allocation_in_multiple_accounts I see the point of it, but it's convenient to keep the same allocation in case we stop contributing to a particular account. This year we're uncertain about our income, so we may not contribute to all of the accounts we contributed to last year - 403b, 403b, 401a, 457, Rira, Rira, Taxable. I do like the idea of fixed income investments(bonds) in the Roth IRAs through, just in case they are needed as emergency funds. This year we're going to try to maintain contributing the max to the 457 and 403b. The 457 is much more attractive due to the withdrawal rules.
  22. I was able to transfer an American Funds IRA and 403b into my Vanguard 403b. The district did have to sign off on the IRA transfer, but the plan allowed it. The first institution I spoke with was Vanguard. They provided the forms that needed to be filled out. My American Funds broker didn't even realize I had transferred the money until he tried to set up a meeting with me and I told him I moved it =P
  23. Low-cost index funds are supposed to be the ticket for getting rich slowly. If you own a target date fund with Vanguard your money is spread across like 11,000 companies and like 20,000 bonds... I would say that's safer than putting your money most other places.
  24. +1 for Vanguard. Mathematically it's the optimal way to go. The only drawback is that you don't get a person who'll hold your hand through making elections and changes, but you should be able to find your own information(especially if you've already found this forum.)
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