Page 131 of 147 FirstFirst ... 3181121129130131132133141 ... LastLast
Results 2,601 to 2,620 of 2939
  1. #2601
    As we all know, compounding, over long time periods, is one of the main keys to financial success. Another is taking as much risk as you can comfortably tolerate.

    To illustrate, in 1998, I converted a $70,800 Traditional IRA to a ROTH IRA.

    I would need $128,600 today to have kept pace with inflation (same purchasing power). I would currently have $345,800 if I had invested in an S&P 500 index and reinvested all dividends.

    FTR, I did neither. I also didn’t put/leave it in a mason jar.

  2. #2602
    Join Date
    Nov 2020
    Location
    Western NC
    Quote Originally Posted by Jeffrey View Post
    As we all know, compounding, over long time periods, is one of the main keys to financial success. Another is taking as much risk as you can comfortably tolerate.

    To illustrate, in 1998, I converted a $70,800 Traditional IRA to a ROTH IRA.

    I would need $128,600 today to have kept pace with inflation (same purchasing power). I would currently have $345,800 if I had invested in an S&P 500 index and reinvested all dividends.

    FTR, I did neither. I also didn’t put/leave it in a mason jar.
    But you should also mention that the gains in your Roth can be withdrawn tax free when you "come of age". That makes them more valuable, dollar for dollar, than any gains from an S&P index fund, assuming that it was in a traditional (non Roth) retirement vehicle.

    I also completely agree with the concept of compounding.

  3. #2603
    Quote Originally Posted by Section 15 View Post
    But you should also mention that the gains in your Roth can be withdrawn tax free when you "come of age". That makes them more valuable, dollar for dollar, than any gains from an S&P index fund, assuming that it was in a traditional (non Roth) retirement vehicle.

    I also completely agree with the concept of compounding.
    My financial plan is to leave my Roths to my 14 year old daughter (only child). After I die, she will (current law) have 10 years to withdraw tax free. I’ll teach her to withdraw 100% on day 3,650.

  4. #2604
    Join Date
    Feb 2007
    Location
    Washington, DC area
    Quote Originally Posted by Jeffrey View Post
    My financial plan is to leave my Roths to my 14 year old daughter (only child). After I die, she will (current law) have 10 years to withdraw tax free. I’ll teach her to withdraw 100% on day 3,650.
    Don’t forget leap days!

    -jk

  5. #2605
    Quote Originally Posted by -jk View Post
    Don’t forget leap days!

    -jk
    Silly me…. Thanks!

  6. #2606
    Join Date
    Nov 2020
    Location
    Western NC
    Quote Originally Posted by Jeffrey View Post
    My financial plan is to leave my Roths to my 14 year old daughter (only child). After I die, she will (current law) have 10 years to withdraw tax free. I’ll teach her to withdraw 100% on day 3,650.
    I like that plan. That's why you are smarter than me!

  7. #2607
    Quote Originally Posted by Section 15 View Post
    I like that plan. That's why you are smarter than me!
    Thanks for the kindness!

    Unfortunately, now, I can’t make the “overrated” chant, in my head, go away.

  8. #2608
    Quote Originally Posted by YmoBeThere View Post
    Today feels like a good day to go all in.
    Down 7.7% since this stupendous call.

  9. #2609
    Quote Originally Posted by YmoBeThere View Post
    Down 7.7% since this stupendous call.
    You picked a much better entry period than early January!

  10. #2610

    September Market Roundup

    Well, September lived up to its reputation as the US stock market got hammered as continued hawkishness by the Fed weighed on markets. The S&P re-entered bear market mode as interest rates climbed. Yields on 2 year Treasuries moved to 4.22% today. At the beginning of the year they were yielding 0.78% This month, value rolled over as the competition for income driven investors made bonds a more attractive option compared to dividend yield stocks. S&P 500 Value portion of the index currently yields 2.42% in comparison to the two years. The Value portion of the index dropped even more than growth with a 8.4 point drop compared to the Growth portions 7.9 point drop.

    And in the name of transparency, yes this was me:

    Screenshot 2022-09-30 182611.jpg

    All of the iShares S&P 500 ETFs shown below paid out dividends on 9/30/2022. In order to consolidate info as the post is getting long, I've summarized to just that annual dividend paid out the last 4 quarters.

    The market of large cap US stocks (S&P 500) since the end of November: (as of 9/30/2022)

    iShares Core S&P U.S. Value ETF (IUSV) price at close 11/30/2021: 71.77
    Total Dividends: 1.52
    Annual Dividend Yield: 2.12% at purchase/ current 2.42%
    Adjusted cost basis: 70.25
    Close 9/30: 62.61

    Return during that period at the end of September: -10.9%


    iShares Core S&P U.S. Growth ETF (IUSG) price at close 11/30/2021: 113.07
    Total Dividends: 0.80
    Annual Dividend Yield: 0.71% at purchase/current yield 1.00%
    Adjusted cost basis: 112.27
    Close 9/30: 80.18

    Return during that period at the end of September: -28.5%

    Overall value has outperformed growth by -17.6% during this time period.

    iShares Core S&P 500 ETF (IVV) price at close 11/30/2021: 457.63
    Total Dividends: 6.17
    Annual Dividend Yield: 1.35% at purchase/current yield 1.72%
    Adjusted cost basis: 451.462
    Close 9/30: 358.65

    Return during that period at the end of September: -20.6%

  11. #2611
    Quote Originally Posted by YmoBeThere View Post
    The Value portion of the index dropped even more than growth with a 8.4 point drop compared to the Growth portions 7.9 point drop.
    This is a correct statement, but misleading. For the month, the IUSV dropped 9.4% and the USG 10.4% compared to where they were at the end of August. What I was trying to highlight in this post was that value finally got caught up in the significant downward action for the first time.

  12. #2612
    Join Date
    Oct 2007
    Location
    Cabbagetown, Atlanta, GA
    Quote Originally Posted by YmoBeThere View Post
    Well, September lived up to its reputation as the US stock market got hammered as continued hawkishness by the Fed weighed on markets. The S&P re-entered bear market mode as interest rates climbed. Yields on 2 year Treasuries moved to 4.22% today. At the beginning of the year they were yielding 0.78% This month, value rolled over as the competition for income driven investors made bonds a more attractive option compared to dividend yield stocks. S&P 500 Value portion of the index currently yields 2.42% in comparison to the two years. The Value portion of the index dropped even more than growth with a 8.4 point drop compared to the Growth portions 7.9 point drop.

    And in the name of transparency, yes this was me:

    Screenshot 2022-09-30 182611.jpg

    All of the iShares S&P 500 ETFs shown below paid out dividends on 9/30/2022. In order to consolidate info as the post is getting long, I've summarized to just that annual dividend paid out the last 4 quarters.

    The market of large cap US stocks (S&P 500) since the end of November: (as of 9/30/2022)

    iShares Core S&P U.S. Value ETF (IUSV) price at close 11/30/2021: 71.77
    Total Dividends: 1.52
    Annual Dividend Yield: 2.12% at purchase/ current 2.42%
    Adjusted cost basis: 70.25
    Close 9/30: 62.61

    Return during that period at the end of September: -10.9%


    iShares Core S&P U.S. Growth ETF (IUSG) price at close 11/30/2021: 113.07
    Total Dividends: 0.80
    Annual Dividend Yield: 0.71% at purchase/current yield 1.00%
    Adjusted cost basis: 112.27
    Close 9/30: 80.18

    Return during that period at the end of September: -28.5%

    Overall value has outperformed growth by -17.6% during this time period.

    iShares Core S&P 500 ETF (IVV) price at close 11/30/2021: 457.63
    Total Dividends: 6.17
    Annual Dividend Yield: 1.35% at purchase/current yield 1.72%
    Adjusted cost basis: 451.462
    Close 9/30: 358.65

    Return during that period at the end of September: -20.6%
    Can you tell me the difference in the Growth, Value, and plain? S&P ETFs?

    I currently invest in individual stocks, but have been researching S&P ETFs, as I would like to start allocating a percentage of my investments into an index fund, but there are so many out there, it's a little mind numbing.

    Seems like the larger %age dvidend would be the best way to go, but I'm sure it can't be that simple. Do you invest in any/all of those ETFs? Do you find it beneficial to diversify across those ETFs? Thanks!
    Hard at work making beautiful things.

  13. #2613
    Join Date
    Dec 2011
    Location
    Albemarle, North Carolina
    Quote Originally Posted by Edouble View Post
    Can you tell me the difference in the Growth, Value, and plain? S&P ETFs?

    I currently invest in individual stocks, but have been researching S&P ETFs, as I would like to start allocating a percentage of my investments into an index fund, but there are so many out there, it's a little mind numbing.

    Seems like the larger %age dvidend would be the best way to go, but I'm sure it can't be that simple. Do you invest in any/all of those ETFs? Do you find it beneficial to diversify across those ETFs? Thanks!
    I’m partial myself to VOO because of the .03 expense ratio. I don’t usually like dividend ETFs as much as just buying the Aristocrats but VYM is good (Again with a low expense ratio of .06). Just make sure before you pick one that they haven’t made a better version… ahem QQQ and all their commercials when QQQM exists.
    "The greatest enemy of knowledge is not ignorance, it is the illusion of knowledge" -Stephen Hawking

  14. #2614
    Quote Originally Posted by Edouble View Post
    Can you tell me the difference in the Growth, Value, and plain? S&P ETFs?

    I currently invest in individual stocks, but have been researching S&P ETFs, as I would like to start allocating a percentage of my investments into an index fund, but there are so many out there, it's a little mind numbing.

    Seems like the larger %age dvidend would be the best way to go, but I'm sure it can't be that simple. Do you invest in any/all of those ETFs? Do you find it beneficial to diversify across those ETFs? Thanks!
    YMO probably has a better take but the reality is you ARE diversifying when you buy those etf’s. They represent the market as a whole, obviously the growth version slanted towards growth stocks etc.

    If you are buy and hold, and for these etf’s you should be, I’d go with the balanced and let time even out ‘value’ vs ‘growth’.

  15. #2615
    Quote Originally Posted by Edouble View Post
    Can you tell me the difference in the Growth, Value, and plain? S&P ETFs?

    I currently invest in individual stocks, but have been researching S&P ETFs, as I would like to start allocating a percentage of my investments into an index fund, but there are so many out there, it's a little mind numbing.

    Seems like the larger %age dvidend would be the best way to go, but I'm sure it can't be that simple. Do you invest in any/all of those ETFs? Do you find it beneficial to diversify across those ETFs? Thanks!

    Can you tell me the difference in the Growth, Value, and plain? S&P ETFs?

    IVV is the S&P 500 with a 0.03% Expense Ratio.

    Per the prospectus, IUSV seeks to track the investment results of an index composed of large- and mid-capitalization U.S. equities that exhibit value characteristics. Value characteristics tending to be lower than market average Price Earnings ratio, slower rates of growth, pay out some of their earnings in dividends, etc. The top 5 holdings of IUSV are Berkshire Hathaway, J&J, Exxon, Proctor and Gamble, and United Health. It has an expense ratio of 0.03%

    Per it's prospectus, IUSG seeks to track the investment results of an index composed of large- and mid-capitalization U.S. equities that exhibit growth characteristics. Here generally, talking about higher P/E ratios, revenue growth rates, etc. The top 5 holdings of IUSG are Apple, Microsoft, Amazon, Tesla, Alphabet/Google. It has an expense ratio of 0.04%

    Why these rather than say IVE(S&P 500 Value) and IVW(S&P 500 Growth) also from iShares/BlackRock?

    Two reasons, first both of those ETFs have higher expense fees of 0.18% so that impacts performance slightly. Second, these two more closely match the performance of the funds that were in the 401k of my former employer which used proprietary funds(they used to own their own invest arm) when I started tracking this last year.

    Do you invest in any/all of those ETFs?

    I don't but as noted in my prior comment these track the largest investments I have in my 401k most accurately. I would have no qualms investing in these ETFs in an account if that was the strategy I chose to use for that account. Why these (IVV, IUSG, IUSV) versus others say from Vanguard? No particular reason, someone noted expenses when mentioning Vanguard. There is no material difference expense differences between these from BlackRock compared to those for Vanguard. This is not true of the IVE and IVW(0.18%) relative to Vanguard's offerings (0.10%) Since these particular ETFs are meant to track an index, there shouldn't be much variation between these and ETFs from other providers as long as the Expense Fees are inline. Any difference is likely attributable to execution differences. What do I mean by execution differences? Say the S&P 500 Index committee decides that company ABC will be dropped from the Index and company XYZ will be added on such and such a date. A company could start buying XYZ stock and selling stock ABC ahead of that date. Another ETF provider could wait until that date to conduct the transactions. These differences will create tracking errors compared to the index that will show up due to these differences in execution. Given the size of the companies being added and removed relative to the S&P 500 index itself are tiny, these tracking errors should be in the hundredths of percentage points.

    Do you find it beneficial to diversify across those ETFs?
    Two items related to this:

    1) there is some overlap with these two ETFs(IUSV, IUSG). JPMorgan is held in both but is 1.00% of the IUSV portfolio and 0.91% of the IUSG portfolio. There are more examples than that mainly among financial stocks. Depending upon the ETFs there may be more or less overlap. The overlap between those and the IVV is even greater since they are mostly composed of its constituents.

    2) I use these ETFs to make style bets (Growth/Value) which is mainly what I'm showing here. Some might say this is market timing which I wouldn't argue against. When I made my comment on 9/13, "time to go all in", I put my money into the S&P 500 in total, no style bet this time around. This was primarily due to my belief that in a rising rate environment particularly above the dividend yield, all equities(stocks) tend to get hit similarly, at least from a style perspective that covers many different companies. We saw that this month.

    but there are so many out there, it's a little mind numbing.

    Yes, it is very much so. My personal recommendation if you are headed down the path of ETFs that track indexes, it is easier to settle on a family of ETFs(State Street Global Advisors SPDRs, BlackRocks iShares, Vanguard) and then make your allocation decisions. If you are going for Sector ETFs (Tech, Financials, Healthcare, Emerging Markets) you will see greater variation in both expenses and performance and there is more to consider.

  16. #2616

    9.62% Risk Free Yield

    October is your last month to take advantage of the 9.62% rate from US Treasury I bonds. You will receive that for the first 6 months you have them. Also keep in mind that you can't redeem them for 1 year, and if you redeem them before 5 years there is a 3 month interest penalty.

  17. #2617
    Interesting article on strategic beta or style indexed funds. Very similar to what I'm showing with IUSG and IUSV.

    Vanguard's Other Index-Fund InventionShould Jack Bogle have lamented his subsequent creation?

    In 1992, the company floated Vanguard Growth Index (VIGRX) and Vanguard Value Index (VIVAX), which became the first mutual funds to index securities that were sorted by investment factors (in this case, growth and value styles).


    https://www.morningstar.com/articles...fund-invention

    The punchline:

    The results are doubly surprisingly. First, the academic literature, which had inspired Bogle’s decision to create the two investment-style funds, indicated that value stocks were comfortably the better performers. Pretty much anybody who had studied market history expected that pattern to hold. It did not.

  18. #2618
    Quote Originally Posted by YmoBeThere View Post
    Interesting article on strategic beta or style indexed funds. Very similar to what I'm showing with IUSG and IUSV.

    Vanguard's Other Index-Fund InventionShould Jack Bogle have lamented his subsequent creation?

    In 1992, the company floated Vanguard Growth Index (VIGRX) and Vanguard Value Index (VIVAX), which became the first mutual funds to index securities that were sorted by investment factors (in this case, growth and value styles).


    https://www.morningstar.com/articles...fund-invention

    The punchline:

    The results are doubly surprisingly. First, the academic literature, which had inspired Bogle’s decision to create the two investment-style funds, indicated that value stocks were comfortably the better performers. Pretty much anybody who had studied market history expected that pattern to hold. It did not.
    The tech sector drove the great performance of growth over the last two decades. Behemoths like Apple, Amazon, Microsoft, et al have become a HUGE part of the global economy (and make up a ridiculous % of the S&P 500 now) and are all squarely in the "growth" bucket. I personally do somewhat of a "barbell" approach, investing in Mega-Cap Growth and Small-Cap Value, although the vast majority of my equity is still "total stock index" (with foreign stock index holdings too).

    If you look at Vanguard's "International Growth Fund" it has huge outperformance over almost all other standard foreign index funds. The reason? Amazon. Even though Amazon isn't a foreign company, the fund allows its advisors to select companies that have huge operations outside the U.S. A single company like that has driven the outperformance of the entire fund basically over a typical foreign index fund. Will Amazon continue the huge price appreciation? Nobody knows. But certainly, tech hasn't had a good year this year...That's why diversification is key, but someone holding the S&P 500 today has a lot more tech/growth than they did 20 years ago simply because those companies' meteoric rises have made their market caps ridiculously huge (and S&P 500 holdings are driven by market cap).

  19. #2619
    Join Date
    Nov 2007
    Location
    Raleigh, NC
    Speaking of going all in...anyone planning on buying in on the Inverse Cramer ETF?
    https://fortune.com/2022/10/06/jim-c...e-wood-tuttle/
    Last edited by Acymetric; 10-07-2022 at 01:39 PM.

  20. #2620
    Join Date
    Nov 2007
    Location
    Vermont
    I just noted that the Duke Endowment returned -1.5% for the fiscal year ending 6/30/22...which, given the market, and last year's bonanza return of 56%, ain't that bad. (I was worried they might not have locked in some of reported crypto gains, but they seem to know what they're doing over at DUMAC.

Similar Threads

  1. Duke History (new thread-- posts moved from unrelated thread)
    By jimsumner in forum Elizabeth King Forum
    Replies: 43
    Last Post: 12-25-2019, 09:15 PM

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •