September 2021 Hedgefundie Portfolio Update

Categories: investing
Today I performed the 5th rebalance of my Hedgefundie Portfolio. Since the last rebalance in July, the porfolio has gone up by about $1500. Today’s re-balance involved selling $660 of UPRO and using it to purchase $660 of TMF. Since I started in May of last year, the gain of my portfolio is $8000 on an investment of $20000. An increase of 40%.

Thoughts on Fidelity Go Robo Advisor

Categories: investing
Unlike Wealthfront or Betterment, I don’t hear much about Fidelity Go RoboAdvisors. Perhaps because Fidelity doesn’t pay for or have affiliate links. Fidelity Go has an interesting pricing structure. The first $9,999 is managed for free, then $3/month for balances $10k to $49,999, and finally 0.35%/year afterwards. This is all you’ll pay, the underlying funds have no expense ratios and there are no transaction fees. For the cheapskates, the fixed $3/month range gives an interesting optimization.

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Third Rebalance of my Hedgefundie Portfolio

Categories: investing
Today I performed the third rebalance of my Hedgefundie portfolio. Since my last rebalance, I’ve closed my Interactive Brokers Roth IRA account and consolidated it with my Roth at Fidelity. Unlike IBKR, Fidelity lets me buy fractional shares of TMF and UPRO. It also lines up with my goal to have all my banking in one place. Performance has been disappointing. My UPRO allocation is up about 2k, however TMF is down 2k.

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EE Bond Value As It Gets Closer To Maturity

Categories: investing
EE Bonds are interesting. They are bonds guaranteed by the US Government and offered at a minuscule rate, currently at 0.10%. However, the twist is they double in value after 20 years. This means if you hold the bonds for 20 years, the interest rate is about 3.5263%. The doubling also means the bonds become more valuable over time. Eventually, you may be better off taking a loan or selling stocks just to avoid selling.

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Second Rebalance of my Hedgefundie Portfolio

Categories: investing
Today I performed the second rebalance of my Hedgefundie portfolio. This time I also added my 2021 Roth contribution of $6000 and $646 of extra cash I had in my Roth IRA. For this year’s Roth contribution I chose Fidelity. Fidelity, unlike Interactive Brokers, let me purchase fractional shares of UPRO and TMF. This is great news since with IBKR I always end up with a few dollars in my account.

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Saving on Taxes with a 529 Plan

Categories: investing
Every now and then a post like Any 529 Abusers Here? appears on the Bogleheads about using a 529 account as a tax-shelter for non-education purposes. Like most posts, people post a bunch of speculation but no one does the math. Most, I suspect, don’t even think before posting. A simple thought experiment should suffice. The penalty on non-educational withdrawals from a 529 is the both the current income tax and a 10% penalty on the gain.

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Thoughts on International Investing

Categories: investing
As it perodically happens, someone recently posted a thread on the Bogleheads proclaiming that international stocks are a dead horse and they are glad to dismount it - Long Suffering VXUS Holder No More. I wonder at posts like this. Do people really have so little to do that they actually go through the effort to post their life decisions in a public forum? For me the thing about international is nobody knows the future.

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The Biggest Drawback of Vanguard Total World

Categories: investing
There is a lot of discussion online about the Vanguard Total World Stock Fund which is sold both as a mutual fund and a ETF. The debate is often about its allocation to International funds and how that drags down the total return. As if no other country in the world produces anything. However for me, the biggest debate is the fund is cap-weighted and so always more in the largest companies which are often very expensive.

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Converting Fidelity’s Symantec VIP token to TOTP to use with Authy

Categories: investing
This is a quick write-up of switching the Fidelity authentication app from Symantec VIP to Authy based on a reddit post1 that explained how to do it for Charles Schwab. Steps: Install Python and the Pip package manager Install python-vipaccess. On the command line you’d execute something like this: pip install --user python-vipaccess There are several options for vipaccess. For Fidelity this worked for me:

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First Rebalance of my Hedgefundie Portfolio

Categories: investing
I started my hedgefundie journey at around the end of May of this year. In his post Hedgefundie recommended rebalancing every 3 months or so because that seemed most optimum. So it has been about 3 months and yesterday I decided to perform the rebalance. I started with about $5500 in a Roth IRA at Interactive Brokers and as of yesterday it has grown to $8042 with most of the growth coming from UPRO.

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The Smartest Thing I Read on Bogleheads

Categories: investing
While reading the Bogleheads today, I happened to come across a post started on Jul 13, 2011 at 7:37PM titled What is the longest period for stock market to lose money? The thread starts out with the usual naval gazing where posters go back and forth about if it is after taxes and fees, and if they should consider real or nominal yield. There is also discussion if the number encompasses all stocks or only small caps.

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Introducing the Ultra Portfolio at M1 Finance

Categories: investing
The Ultra Cap Fund is an equal weight portfolio comprised of the 4 largest companies in the world by market cap. This M1 Finance Pie shows the portfolio - https://m1.finance/fG8FgwOlkT83. Today on May 29, 2020 the largest four companies in the world are Apple, Microsoft, Amazon, and Google. Their services encompass all things - laptops, groceries, software, cloudspace, advertising, self-driving cars, and everything in between. They also have massive manufacturing capabilities and operate the largest and longest logistics chains in the world.

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Drawbacks of M1 Finance

Categories: investing
Today lets continue discussing M1 Finance. People tout the benefits of M1 but not many go into its drawbacks. Perhaps the sweet seductive siren song of the $10 referral payola sways their opinions. Of course not. There is absolutely no referral spam on the internet. lol. People get drawn into talk of pies and being able to invest small amounts over time. They forget the biggest contributor to wealth is savings rate and not compounding 7% annually on a measly monthly $100 contribution.

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Starting Hedgefundie’s Adventure at Interactive Brokers Lite

Categories: investing
Today I set up the hedgefundie portfolio at my Interactive Brokers Lite(IBKR) account. Who is Hedgefundie? Hedgefundie is a random guy over on the bogleheads forum who’s posted a portfolio of a 3x leveraged S&P fund and 3x leveraged long duration treasury bonds. The S&P fund gives growth while the treasury bonds balance out the riskiness a.k.a provide risk parity. Hedgefundie and other forum members have done extensive backtesting and generally the strategy works.

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M1 Finance and Fees

Categories: investing
One of the key issues I have with making M1 Finance my primary brokerage and bank is their fees, which to be frank, are annoying. For example lets look at their $25 IRA Conversion Fee. If you perform say a Backdoor Roth at M1 and can swing the maximum $6000, this comes out to a cost of 0.42% or enough to pay all expenses of the Vanguard S&P 500 Fund, VOO, for 14 years!

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My M1 Finance Pie

Categories: investing
Today lets talk about my M1 Finance Pie. My M1 Finance Pie into which I’ve invested a grand total of $25 is split into two slices - Outta Control and Going To Zero. Outta Control is a copy of the hedgefundie portfolio which a 55/45 ratio of UPRO, a 3x leveraged S&P fund, and TMF, a 3x leveraged long duration treasury fund. Looking through the threads on the bogleheads forum, I think I have a 10% chance of losing it all and a 90% chance of becoming a multi-millionaire.

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Thoughts on M1 Finance

Categories: investing
I finally got around to setting up my M1 Finance account two years after I first applied. When I applied two years ago, in 2018, they asked me for a utility bill and a picture of my driver license. I sent those in and then they ignored me. Others on the M1 subreddit report this is common and expected. Two years later (like last week), while ruminating on the hedgefundie thread on the Bogleheads forum, I decided to check up on M1.

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The Secret Of Investing

Categories: investing
The secret to investing is time. Long term investing is boring and not stimulating. This is why you don’t hear much about it in the plethora of websites, tv shows, books and other media dedicated to investing. There is a hyper-focus on short term gains and daily movements because people focus on today instead of where they’ll be n 6 months or 10 years. I’m sure there is a behavioral finance topic somewhere in this observation.

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