Search found 5226 matches

by Kevin M
Thu Jul 02, 2015 8:36 pm
Forum: Investing - Theory, News & General
Topic: Meb Faber Kindle Books - Free!
Replies: 12
Views: 1672

Re: Meb Faber Kindle Books - Free!

Yep, I have Kindle Unlimited, but instead of using up 3 slots, just bought all three outright for $0.

Thanks!

Kevin
by Kevin M
Thu Jul 02, 2015 8:29 pm
Forum: Investing - Help with Personal Investments
Topic: How to play Europe
Replies: 7
Views: 443

Re: How to play Europe

Just looking at a 1-year price chart of VGK, we are still more than 8% above the 52-week low, and that doesn't include the two dividends paid since then. I rebalanced back to my target allocation on Jan 6, 2015, which just happens to have been the 52-week low (I got lucky). However, this wasn't real...
by Kevin M
Thu Jul 02, 2015 8:16 pm
Forum: Investing - Help with Personal Investments
Topic: Want to buy stock - Not sure where to start
Replies: 15
Views: 763

Re: Want to buy stock - Not sure where to start

This is a very risky thing to do, and demonstrates zero understanding about investing (based on the limited information provided). Why do you want to do this?

Kevin
by Kevin M
Thu Jul 02, 2015 8:08 pm
Forum: Investing - Theory, News & General
Topic: What is the Duration of Your Bond Portfolio? And Why?
Replies: 28
Views: 1509

Re: What is the Duration of Your Bond Portfolio? And Why?

In addition to the alternatives David mentions, with low or zero duration but intermediate-term yields, direct CDs also offer intermediate-term yields with zero-to-very-low duration, although the duration-as-interest-rate-sensitivity concept doesn't really apply to the CDs (because the liquidation v...
by Kevin M
Thu Jul 02, 2015 7:39 pm
Forum: Personal Finance (Not Investing)
Topic: capital gains on mutual fund
Replies: 3
Views: 228

Re: capital gains on mutual fund

You will receive a 1099-DIV next January that will report the interest you earned in 2015. This interest will be reported as ordinary dividend income on your tax return, and will be included in the income that is taxed at your ordinary tax rate(s). EDIT: Note that dividend income from a bond fund is...
by Kevin M
Thu Jul 02, 2015 6:06 pm
Forum: Investing - Theory, News & General
Topic: Are REITs necessary in a portfolio? Why?
Replies: 67
Views: 4423

Re: Are REITs necessary in a portfolio? Why?

--Using the 10 year T-Bond "rule of thumb" proposed by Shaw: VNQ's current yield 3.76% minus 10 year T-Bond 2.39% = + 1.37%. 1.37% > 1.0% (100 basis points) , so VNQ is likely in the "fair value" range. I think you should be using the dividend yield , not the yield including cap...
by Kevin M
Thu Jul 02, 2015 3:57 pm
Forum: Investing - Help with Personal Investments
Topic: Making the most of fund choices in 401K
Replies: 12
Views: 800

Re: Making the most of fund choices in 401K

I generally think ruralavalon provides excellent portfolio advice, and sometimes don't even bother posting in a portfolio advice thread upon seeing that ruralavalon has already posted. However, I disagree with some of the advice in this thread, although these are second-order issues, so you probably...
by Kevin M
Thu Jul 02, 2015 3:38 pm
Forum: Investing - Help with Personal Investments
Topic: Making the most of fund choices in 401K
Replies: 12
Views: 800

Re: Making the most of fund choices in 401K

No need to provide charts but I appreciate the offer. Looks like VSMAX is the Vanguard small cap index (admiral) which sounds like its solid for roughly 25% of my US stock allocation. If I did want hold mid cap as well then it looks like VIMSX (admiral) is the symbol. I want to keep it simple espec...
by Kevin M
Thu Jul 02, 2015 3:03 pm
Forum: Investing - Theory, News & General
Topic: Are REITs necessary in a portfolio? Why?
Replies: 67
Views: 4423

Re: Are REITs necessary in a portfolio? Why?

For those who haven't read it, you might want to look at this thread, How Would Mr. Bogle Calculate Expected REIT Returns? - Bogleheads , started by Boglehead author William Bernstein. <snip> If I’ve learned anything from Jack Bogle, it’s the fundamental equation of expected return (ER): ER = divide...
by Kevin M
Wed Jul 01, 2015 8:30 pm
Forum: Investing - Help with Personal Investments
Topic: As a target retirement fund investor, should I substitute Admiral Funds for Investor Shares?
Replies: 17
Views: 1023

Re: As a target retirement fund investor, should I substitute Admiral Funds for Investor Shares?

The average duration of Total Bond Market II (VTIBX) is 5.7 years while the av. duration of Total Int'l Bond Index(VTIBX) is 7.4 years. VTIBX is more than double the expense ratio of Total Bond and the duration spread is 1.7 years. It would be had for me psychologically right now to bump up my fixe...
by Kevin M
Wed Jul 01, 2015 7:42 pm
Forum: Investing - Theory, News & General
Topic: What are you up YTD? [Year To Date]
Replies: 378
Views: 46320

Re: YTD 1st half 2015

I have no idea, but when I look at YTD returns, I also like to look at 1-year returns (and even longer) for a bit more perspective. For example, although Vanguard bond fund returns are pretty flat, if not negative, YTD, they still are pretty solid over the last full year. There are a few exceptions,...
by Kevin M
Wed Jul 01, 2015 7:33 pm
Forum: Investing - Help with Personal Investments
Topic: Is a large emergency fund needed after 59 1/2
Replies: 24
Views: 2377

Re: Is a large emergency fund needed after 59 1/2

I have never thought in terms of having an emergency fund, but I always have considered liquidity to meet expenses. I happen to have a large taxable account, and if I need to raise cash, I just pull from whatever asset is over its target value according to my asset allocation (I am early 60's and re...
by Kevin M
Wed Jul 01, 2015 7:25 pm
Forum: Personal Finance (Not Investing)
Topic: Fidelity or Schwab checking account better for foreign travel?
Replies: 13
Views: 1011

Re: Fidelity or Schwab checking account better for foreign travel?

Based on the research I did on this a few months ago, before a trip to France, we went with the Schwab account. No FTF, all ATM fees reimbursed, and it is a chip and pin card, although it's online PIN only. I used to have a Schwab brokerage account, but it was closed due to inactivity; fortunately m...
by Kevin M
Wed Jul 01, 2015 7:07 pm
Forum: Investing - Theory, News & General
Topic: Are REITs necessary in a portfolio? Why?
Replies: 67
Views: 4423

Re: Are REITs necessary in a portfolio? Why?

<snip> so I ask: why should one bother to own them? If you ask this question, I think you should not own them. I think that anyone who is unsure about including REITs in their portfolio should not do so. Some of us have decided to include REITs in our portfolios for reasons such as those already sh...
by Kevin M
Wed Jul 01, 2015 6:43 pm
Forum: Investing - Help with Personal Investments
Topic: As a target retirement fund investor, should I substitute Admiral Funds for Investor Shares?
Replies: 17
Views: 1023

Re: As a target retirement fund investor, should I substitute Admiral Funds for Investor Shares?

I recommend that you invest in the appropriate Vanguard Retirement Fund - definitely Admiral Class - for lower costs and a professionally managed investment glide path. The TR funds do not offer Admiral shares, which is why grouper is asking the question. Interestingly, Vanguard now is offering low...
by Kevin M
Wed Jul 01, 2015 6:39 pm
Forum: Investing - Help with Personal Investments
Topic: As a target retirement fund investor, should I substitute Admiral Funds for Investor Shares?
Replies: 17
Views: 1023

Re: As a target retirement fund investor, should I substitute Admiral Funds for Investor Shares?

If simplicity is high on your list of priorities, I would stick with the TR fund. If you're more of an optimizer, I would not only exchange the TR fund for some of the underlying funds (Total Stock and Total International), but instead of just using the bond funds, I would move a significant portion...
by Kevin M
Wed Jul 01, 2015 6:25 pm
Forum: Investing - Help with Personal Investments
Topic: international rbd [Really Bad Day]
Replies: 18
Views: 1173

Re: international rbd

I last bought international stocks on January 6, as explained in this post: Market at a glance: 52-week and today - Bogleheads . I bought Europe (VEUSX), which was down about 19% from its 52-week high, and Pacific (VPADX), which was down about 13% from its 52-week high (I usually "rebalance&quo...
by Kevin M
Wed Jul 01, 2015 5:41 pm
Forum: Investing - Help with Personal Investments
Topic: Making the most of fund choices in 401K
Replies: 12
Views: 800

Re: Making the most of fund choices in 401K

So even with more limitations on Roth IRA contributions I should still be able to maintain the desired allocation at least for the foreseeable future being the IRA will hold the bonds and a good chunk of the small and mid cap stocks. You've got it! Another input is that I personally don't think you...
by Kevin M
Wed Jul 01, 2015 5:04 pm
Forum: Investing - Help with Personal Investments
Topic: Long term ca muni fund
Replies: 6
Views: 420

Re: Long term ca muni fund

One challenge for these issues has been a growing rate of calls on long term favorable rate bonds. My guess is that this also impacts values as cash is returned instead of the 5% coupon expected. The fund must then grab a lower rate. This has hit many of my personal bonds I had expected LT income f...
by Kevin M
Wed Jul 01, 2015 4:44 pm
Forum: Investing - Help with Personal Investments
Topic: Long term ca muni fund
Replies: 6
Views: 420

Re: Long term ca muni fund

I am not buying, but I am holding. Price was 11.92 as of yesterday. It was below 11 in 2013, so that was a better buying opportunity, and I didn't buy then either, although I might have if I had cash to deploy. Look at a price chart, and you'll see that the recent decline looks more like a blip than...
by Kevin M
Wed Jul 01, 2015 3:55 pm
Forum: Investing - Help with Personal Investments
Topic: Single family homes Vs bonds for retired
Replies: 7
Views: 516

Re: Single family homes Vs bonds for retired

Seems like you have your mind made up, but in case you haven't thought of this ... A house is a risky asset--more like a stock than a bond. You are looking only at the income, not at the total return, which includes gain/loss. The value of your houses probably went down a lot starting around 2006, t...
by Kevin M
Tue Jun 30, 2015 7:55 pm
Forum: Investing - Help with Personal Investments
Topic: Making the most of fund choices in 401K
Replies: 12
Views: 800

Re: Making the most of fund choices in 401K

Clearly the best choice is BlackRock S&P 500 Index Instl 0.11% (wife), with the best choice in your plan being Voya Russell Lrg Cap Index Port S 0.64%. Since you want 90% US stocks, you are in luck, since these two funds get you most of what you need. You seem to have this pretty much figured ou...
by Kevin M
Tue Jun 30, 2015 7:29 pm
Forum: Investing - Help with Personal Investments
Topic: What happens when Admiral Shares drop below $50K?
Replies: 22
Views: 3150

Re: What happens when Admiral Shares drop below $50K?

I have had multiple funds under the Admiral shares limit for long periods of time, both due to market movements and sales, and never had any of them downgraded. But, most aren't way below the limit. I just counted, and currently have eight Admiral shares funds below the limit, including accounts I h...
by Kevin M
Tue Jun 30, 2015 7:14 pm
Forum: Investing - Help with Personal Investments
Topic: What happens when Admiral Shares drop below $50K?
Replies: 22
Views: 3150

Re: What happens when Admiral Shares drop below $50K?

Not to hijack, but has anyone had trouble with their money market going below the 3K minimum? I keep 3K in there at all times and use it to collect dividends for later reinvestment (taxable account, so I can rebalance with those dividends too) but wonder if I could just keep it close to zero instea...
by Kevin M
Tue Jun 30, 2015 7:09 pm
Forum: Investing - Help with Personal Investments
Topic: What to do with old I-bond we just found?
Replies: 7
Views: 816

Re: What to do with old I-bond we just found?

I would keep it. Even though you could earn more during the six-month period it will earn 0%, the annual purchase limits and the superior risk/return compared to TIPS makes I Bonds a nice portfolio component.

Kevin
by Kevin M
Tue Jun 30, 2015 7:01 pm
Forum: Personal Finance (Not Investing)
Topic: Merging IRAs with Different Cost Bases/RMD Schedules
Replies: 6
Views: 587

Re: Merging IRAs with Different Cost Bases/RMD Schedules

I think the top, left cell of the table in the OP answers it. Spouse treats it as his/her own, and thus uses his/her own RMD schedule. As you say, the bases are combined, and reported on the next form 8606.

Kevin
by Kevin M
Tue Jun 30, 2015 4:02 pm
Forum: Investing - Help with Personal Investments
Topic: AA for 529s that will be used for college and grad school
Replies: 11
Views: 955

Re: AA for 529s that will be used for college and grad school

I am fairly risk averse, and don't like money in stocks for shorter-term goals (less than 10 years or so). Add to that the fact that one of the best fixed-income choices available today is in a 529 plan (Colorado Stable Value Plus, earning 3.09% in 2015), and I would lean toward putting as much as p...
by Kevin M
Fri Jun 26, 2015 7:29 pm
Forum: Investing - Theory, News & General
Topic: fund placement
Replies: 28
Views: 1793

Re: fund placement

Put as much in TSP as you can. The TSP has a great fixed income option--the G fund, which earns an intermediate-term Treasury rate, but without any interest-rate risk. You may not want to use that fund now, but once you have other non-TSP investments, you can end up using TSP for part of your fixed ...
by Kevin M
Fri Jun 26, 2015 5:38 pm
Forum: Investing - Theory, News & General
Topic: Marriage, Compatibility, and Investment Assumptions – Am I being reactionary?
Replies: 23
Views: 1862

Re: Marriage, Compatibility, and Investment Assumptions – Am I being reactionary?

I honestly think 5% real is realistic. Then why is the 30-year TIPS yield only about 1.2%? Everyone buying 30-year TIPS is being unrealistic? Granted, I am not buying 30-year TIPS, because I hope to earn a higher real return than that over my remaining lifetime, but I don't know why one wouldn't us...
by Kevin M
Fri Jun 26, 2015 3:46 pm
Forum: Investing - Help with Personal Investments
Topic: Home equity loan to pay off student loan @ 6.55%
Replies: 11
Views: 1116

Re: Home equity loan to pay off student loan @ 6.55%

With respect to putting one's home at risk, Bogleheads do that all the time to buy stocks with uncertain expected returns; anyone who has a mortgage and owns stocks is doing that. Why should one not do the same to earn a guaranteed return? It's also common for mortgage holders to own bonds with yiel...
by Kevin M
Fri Jun 26, 2015 12:56 pm
Forum: Investing - Theory, News & General
Topic: Bogleheads are more aggressive...
Replies: 57
Views: 5983

Re: Bogleheads are more aggressive...

I've seen many, many posts that indicate the many folks here have huge confidence that the future will resemble the past in terms of US stock history statistics, but don't think much about what it was like to actually live through the 1930s in the US, or to have been a typically home-biased Japanese...
by Kevin M
Fri Jun 26, 2015 12:40 pm
Forum: Investing - Help with Personal Investments
Topic: Home equity loan to pay off student loan @ 6.55%
Replies: 11
Views: 1116

Re: Home equity loan to pay off student loan @ 6.55%

Based on a quick look at IRS Publication 936 (2014), Home Mortgage Interest Deduction , it appears that the HEL would be fully deductible. Is that your understanding? Also, is the HEL rate fixed? Assuming yes to both, it seems that fully deductible, fixed-rate debt at 4% is better than partially ded...
by Kevin M
Fri Jun 26, 2015 12:29 pm
Forum: Investing - Theory, News & General
Topic: Marriage, Compatibility, and Investment Assumptions – Am I being reactionary?
Replies: 23
Views: 1862

Re: Marriage, Compatibility, and Investment Assumptions – Am I being reactionary?

Investment Return: .5% real. This is based on the real yield of 10 Year TIPS. For retirement beginning in 20 years and lasting 20 years, couldn't you at least use something between the 20-year TIPS yield of about 0.9% and 30-year yield of about 1.1%, so say 1% real? Social Security payout at 70%. S...
by Kevin M
Thu Jun 25, 2015 5:21 pm
Forum: Investing - Help with Personal Investments
Topic: VBTLX tax-loss harvesting, similar funds?
Replies: 9
Views: 659

Re: VBTLX tax-loss harvesting, similar funds?

After messing up and putting aside my money for a down payment on a house into VBTLX back in April I'm now down close to 3% so far. I plan to use the money within a year or so. Seems like maybe I can make up for at least a bit of my losses by lowering my tax bill through tax-loss harvesting VBTLX. ...
by Kevin M
Thu Jun 25, 2015 5:17 pm
Forum: Investing - Help with Personal Investments
Topic: VBTLX tax-loss harvesting, similar funds?
Replies: 9
Views: 659

Re: VBTLX tax-loss harvesting, similar funds?

So does the short-term loss from selling VBTLX offset the higher tax paid on the short-term interest distributions from these bond funds or does it fall back on my long-term gains that I have this year? I don't have other short-term gains that I can think of. Do you have realized long-term gains? I...
by Kevin M
Thu Jun 25, 2015 4:35 pm
Forum: Personal Finance (Not Investing)
Topic: tap IRA to pay off CC debt?
Replies: 31
Views: 3133

Re: tap IRA to pay off CC debt?

Kevin, I think you're flogging a dead horse. Maybe a sleeping horse? OP may be back with the same dilemma when the 0% term is up. Maybe another $0 cost balance transfer deal will be available, maybe not. The OP has said that he did a zero cost transfer to a zero percent loan for 15 months. Your var...
by Kevin M
Thu Jun 25, 2015 2:57 pm
Forum: Personal Finance (Not Investing)
Topic: tap IRA to pay off CC debt?
Replies: 31
Views: 3133

Re: tap IRA to pay off CC debt?

With respect to an emergency fund, a common recommendation is to use a Roth IRA as an emergency fund, since you can withdraw contributions penalty-free at any time, but can let the money grow for retirement if not needed for emergencies. In your case, since you have no other emergency fund, I would ...
by Kevin M
Thu Jun 25, 2015 2:48 pm
Forum: Personal Finance (Not Investing)
Topic: tap IRA to pay off CC debt?
Replies: 31
Views: 3133

Re: tap IRA to pay off CC debt?

According to our Boglehead Wiki, paying off high-rate debt is the second priority after contributing enough to 401k/403b to get the maximum match: Prioritizing investments - Bogleheads , and I agree with this. So, how is taking a penalty-free distribution from an IRA to pay down high-rate debt diffe...
by Kevin M
Wed Jun 24, 2015 8:34 pm
Forum: Investing - Help with Personal Investments
Topic: Only contribute to the match?
Replies: 12
Views: 1338

Re: Only contribute to the match?

I'll just add my 2 cents, which is that Vanguard Mid-Cap and Small-Cap have performed almost identically since 2001, so you wouldn't want to do a mid-cap/small-cap mix per your OP, since that would be very risky compared to a US total market fund. I would do more of an 80/20 large-cap/small-cap mix ...
by Kevin M
Wed Jun 24, 2015 8:20 pm
Forum: Investing - Help with Personal Investments
Topic: pricing of Vanguard's original issue CDs
Replies: 9
Views: 1153

Re: pricing of Vanguard's original issue CDs

Since I plan to hold these CDs to maturity I understand I will suffer no loss in principal, but I nonetheless overpaid for these CDs -- at least according to Vanguard's bond service. I would expect to see an immediate loss in purchasing a new issue brokered CD due to bid/ask spread. One hundred bas...
by Kevin M
Wed Jun 24, 2015 4:17 pm
Forum: Investing - Help with Personal Investments
Topic: uncertain future: pay off mortgage or continue to invest, or wait?
Replies: 11
Views: 1515

Re: uncertain future: pay off mortgage or continue to invest, or wait?

Right now the funds in taxable is about 27% of the total asset. If that is gone, then the bond will take more than 30% and will increase as I save mostly in TIAA traditional in my 403B annually. A 70/30 stock/fixed-income allocation does not seem too conservative at your ages, so I wouldn't worry a...
by Kevin M
Wed Jun 24, 2015 3:10 pm
Forum: Investing - Help with Personal Investments
Topic: uncertain future: pay off mortgage or continue to invest, or wait?
Replies: 11
Views: 1515

Re: uncertain future: pay off mortgage or continue to invest, or wait?

<snip>We have a 15 year mortgage at 2.375%. We will need to sell our taxable account stocks (around 100K) if we want to pay off the mortgage (200K left). I am not sure if my husband will make enough money to cover the expenses, so I prefer to pay off the mortgage first. That way, we just need less ...
by Kevin M
Tue Jun 23, 2015 5:37 pm
Forum: Investing - Help with Personal Investments
Topic: High growth and low low low risk alternatives for hard earned money (after tax)
Replies: 7
Views: 1118

Re: High growth and low low low risk alternatives for hard earned money (after tax)

Am I short sided? Should I continue to let it ride on stocks since I'm 32? If this money is intended to be used for retirement, or some other distant goal, then the common wisdom would be to consider it part of the same portfolio as your other retirement money, establish an asset allocation and inv...
by Kevin M
Tue Jun 23, 2015 5:31 pm
Forum: Investing - Help with Personal Investments
Topic: High growth and low low low risk alternatives for hard earned money (after tax)
Replies: 7
Views: 1118

Re: High growth and low low low risk alternatives for hard earned money (after tax)

With good CDs purchased directly from banks and credit unions ("direct CDs"), you are not locked in, since there usually is an early withdrawal option. For example, a Synchrony Bank 5-year CD earns 2.25% with an early withdrawal penalty (EWP) of six months of interest. So if rate increase ...
by Kevin M
Mon Jun 22, 2015 6:53 pm
Forum: Investing - Theory, News & General
Topic: Stable Value Fund & Bonds
Replies: 9
Views: 1288

Re: Stable Value Fund & Bonds

For those of you that utilize a stable value fund for a portion (but not all) of the fixed income: How does owning the stable value fund affect how you allocate the remainder of your fixed income? Do you view it as allowing you to take more risk with the remainder of your fixed income (since its va...
by Kevin M
Mon Jun 22, 2015 2:13 pm
Forum: Investing - Help with Personal Investments
Topic: Intermediate (or Short Term) or Stable Value BOND Fund?
Replies: 21
Views: 2617

Re: Intermedaite (or Short Term) BOND Fund or Stable Value Fund?

For one, there are "events" that can trigger a liquidation at book value which could be less than the stable value - they are not as safe as they would have you believe. They would go unstable at the worst possible time. It's true that this is a risk, but how often has it occurred histori...
by Kevin M
Mon Jun 22, 2015 1:20 pm
Forum: Investing - Help with Personal Investments
Topic: Taxable Account Help and Feedback
Replies: 9
Views: 1144

Re: Taxable Account Help and Feedback

Thanks for the input Kevin. I am fortunately to have decent HSA and 401k providers, so each of those accounts are 54% US equities (ie total stock market), 36% international equities, and 10% bonds. My Roth IRA is in the 2055 target retirement fund. OK, so other than the taxable account, your alloca...
by Kevin M
Mon Jun 22, 2015 12:57 pm
Forum: Investing - Help with Personal Investments
Topic: Intermediate (or Short Term) or Stable Value BOND Fund?
Replies: 21
Views: 2617

Re: Intermedaite (or Short Term) BOND Fund or Stable Value Fund?

I don't think the 30-day yield (SEC yield) you show for the intermediate-term bond fund is correct. This is a US aggregate bond fund, so the yield should be close to 2% (Vanguard total bond, which tracks the same index, is 2.0% for investor shares and 2.1% for Admiral shares. Personally, I would pre...
by Kevin M
Mon Jun 22, 2015 12:45 pm
Forum: Investing - Help with Personal Investments
Topic: Bond Funds and Raising Interest Rates
Replies: 41
Views: 5270

Re: Bond Funds and Raising Interest Rates

RetireGood wrote:Thanks Kevin M. My Bond choices are listed in viewtopic.php?f=1&t=167742
Not sure, if I should go 50/50 - Intermediate/SV.

I will answer in the linked thread, since that is specifically about your situation.

Kevin
by Kevin M
Sun Jun 21, 2015 2:25 pm
Forum: Investing - Help with Personal Investments
Topic: Bond Funds and Raising Interest Rates
Replies: 41
Views: 5270

Re: Bond Funds and Raising Interest Rates

The OP is timing the market, IMO, and has starting going from 100% stocks to god-only-knows how much allocation in bonds. I don't think PH12 necessarily is market timing, but instead is trying to adjust the risk/return of the portfolio, and is looking for additional understanding about fixed-income...

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