Richard L

Comments:

• "If you are not a professional investor; if your goal is not to manage money in such a way that you get a significantly better return than the world, then I believe in extreme diversification. I believe that 98 or 99 percent - maybe more than 99 percent - of people who invest should extensively diversify and not trade. That leads them to an index fund with very low costs. All they're going to do is own a part of America. They've made a decision that owning a part of America is worthwhile. I don't quarrel with that at all. That is the way they should approach it." - Warren Buffett, speaking to MBA students Video

  Post: Not Crazy

  Link to comment from May 11, 2023

• Secure 2.0 implemented changes for a qualifying longevity annuity contract (QLAC). In 2022, you could invest the lesser amount of up to $130,000 or 25% of a retirement account in a QLAC. The 25% account limit was abolished and the maximum dollar amount was increased up to $200,000 (adjusted for inflation each year). This law also allows buyers to rescind a QLAC purchase within 90 days sans penalty.

  Post: What’s in It for Me?

  Link to comment from February 12, 2023

• I like low-cost broadly diversified index funds. However, I wouldn't blithely dismiss all actively managed funds. Low-cost active funds managed by respected firms can be worthy additions to an investor's overall portfolio. Certain Vanguard funds managed by Primecap or Wellington come to mind. Thanks for the informative article!

  Post: Make Less Keep More

  Link to comment from December 17, 2022

• I believe assets would have to be liquidated in certain situations. For example, if a 401(k) participant is invested in CITs or institutional funds which are unavailable via the IRA provider.

  Post: Never Simple

  Link to comment from November 27, 2022

• Another great article, Adam! Many domestic Vanguard equity index funds switched from MSCI indexes to CRSP indexes in 2013. To my knowledge, none of these mutual funds made capital gains distributions in 2013 or in subsequent years. In 2021, Vanguard International Dividend Appreciation (VIAAX, VIGI) switched from a Nasdaq index to an S&P index. VIGI was estimated to pay capital gains of $5.23 (6.02% of NAV) on 12/23/2021. 1) Why did this international fund make capital gains distributions while the domestic funds did not? 2) Are there any differences involving in-kind creation/redemption baskets or heartbeat trades for international vs. domestic funds?

  Post: Dunned Differently

  Link to comment from August 29, 2022

• Granted, investors concerned about tax efficiency should probably not hold target-date funds or most balanced funds in taxable accounts. However, I believe Vanguard could have avoided this situation by simply lowering fund fees for the institutional investors with balances > $5MM.

  Post: Tax Dodging

  Link to comment from August 21, 2022

• I've occasionally carried credit card balances in the past. I've become more responsible saving/spending money since then. My credit card balances are now paid off in full each month. Cash-back reward credit cards are used to earn some "free" money. It usually doesn't make sense to carry a credit card balance. However, people may experience emergencies during times when their savings are inadequate. Credit cards can be used if they provide the best viable solution. Funding an emergency savings account should be prioritized to avoid this situation in the future!

  Post: Does it ever make sense to carry a credit card balance?

  Link to comment from March 13, 2022

• Many investors hold bonds to provide ballast in their portfolios. I don't believe foreign bonds are superior to domestic bonds in fulfilling this role. Foreign bond funds are often more expensive than domestic bond funds and developed market bonds have yielded less during the past several years. U.S. investors don't need to own foreign developed market bonds. EM bonds may be an option for investors who can tolerate the added volatility and potential losses.

  Post: Should U.S. investors own foreign bonds?

  Link to comment from January 16, 2022

• I track my portfolio in M* Portfolio Manager and usually check it daily. There isn't a good reason to do this since I rarely execute any trades.

  Post: How often do you check your portfolio and the markets—and why?

  Link to comment from November 21, 2021

• I follow many of the same strategies to protect financial accounts. Like you, I don't trust the "cloud" to store my credentials. Consequently, I use a free open-source password manager (KeePass) to store credentials locally on my home computer. This makes it easy to manage many unique, complex passwords. I don't see the value in maintaining relationships with eight different institutions. In my opinion, this increases complexity without providing additional security benefits when compared to using two or three major institutions instead.

  Post: Nothing to Chance

  Link to comment from November 21, 2021