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Re: Vanguard Total Stock Market Index Fund - Largest Fund

Personally, I think that a few years of flat or negative returns, just might send a lot of people back into actively managed funds or whatever package Wall Street invents to try and lure people into outsized returns. But my guess is that there is a ceiling to the amount of funds flowing into passive...
by Middle
Wed Jul 02, 2014 6:38 pm
 
Forum: Investing - Theory, News & General
Topic: Vanguard Total Stock Market Index Fund - Largest Fund
Replies: 6
Views: 1950

Re: To TIPS or not to TIPS

Sorry, I didn't really want to debate TIPs as much as I was more interested to see what people thought of McCulley's note and this concept of a secular shift in the War on Inflation.
by Middle
Thu Jun 12, 2014 2:27 pm
 
Forum: Investing - Theory, News & General
Topic: To TIPS or not to TIPS
Replies: 4
Views: 488

To TIPS or not to TIPS

I found this note from Paul McCulley at PIMCO to be a very interesting read on inflation and current valuations. It just seems to rather neatly tie a lot of Fed policy up into a nice concise little package. However, it does not inspire me to rush out and purchase any TIPs which are still not part of...
by Middle
Thu Jun 12, 2014 12:29 pm
 
Forum: Investing - Theory, News & General
Topic: To TIPS or not to TIPS
Replies: 4
Views: 488

Re: Split emergency fund into separate categories?

I have had leaky roofs. They suck. A new roof can give you 30 years piece of mind. It's worth it. Dip in, think of it as an investment into your property raising your property value if you have to.
by Middle
Thu May 29, 2014 2:00 pm
 
Forum: Personal Finance (Not Investing)
Topic: Split emergency fund into separate categories?
Replies: 17
Views: 1151

Re: Cheap and Aggressive 401k Options

You'll want to figure out an asset allocation that you are comfortable with which should probably have a large majority in equities and then pick funds with the lowest expense ratios available. Then you'll want to contribute as much as can while not completely sacrificing near term enjoyment of life...
by Middle
Fri May 16, 2014 4:50 pm
 
Forum: Investing - Help with Personal Investments
Topic: Cheap and Aggressive 401k Options
Replies: 22
Views: 617

Re: Switch car insurance? State Farm vs GEICO

My feeling is that customer loyalty just doesn't matter anymore. It might get you a teensy bit better customer service at some point but everything really comes down to the bottom line. I think a lot of us are under the impression that loyalty does matter. I thought so too when I finally got myself ...
by Middle
Thu May 15, 2014 7:51 pm
 
Forum: Personal Finance (Not Investing)
Topic: Switch car insurance? State Farm vs GEICO
Replies: 42
Views: 3791

Re: How much house can you afford to buy? When is it to much

Yes, it seems like a 4 bd 4 bath house is more house than you need. And that usually means more utility and prop. tax costs than you need too.

I would also say you don't necessarily want to buy the best house on the block either especially in an area that you described as a dying city.
by Middle
Mon May 05, 2014 5:05 pm
 
Forum: Personal Finance (Not Investing)
Topic: How much house can you afford to buy? When is it to much?
Replies: 34
Views: 4150

Re: Car Advice

For what it's worth (yes, I spelled it out - YISIO), I went through this exercise a few months ago. I ended up with a used Prius that I could pay cash for. If the battery system craps out on me early, this will run up my ownership cost, but if not, then I am hoping for a good solid 10 years of low o...
by Middle
Mon May 05, 2014 4:38 pm
 
Forum: Personal Finance (Not Investing)
Topic: Car Advice
Replies: 32
Views: 2946

Re: Does everyone have an Emergency Fund

I third the Roth IRA recommendation for a couple of reasons. the first is that it fits your goals of funding retirement and then you have the contributions accessible for emergencies. Second, it gives you some tax flexibility in retirement with the different taxation of Roth vs. Traditional. Persona...
by Middle
Thu May 01, 2014 1:23 pm
 
Forum: Personal Finance (Not Investing)
Topic: Does everyone have an Emergency Fund
Replies: 51
Views: 4653

Re: State tax deductible 529

I think the reality check is that you might want to make sure you're not letting the tax tail wag the dog. If by saying that you're maxing out on 401k contributions you are saying that you are on target for retirement savings, then ok. But that would be where I would start because you can get a coll...
by Middle
Mon Apr 28, 2014 7:38 pm
 
Forum: Personal Finance (Not Investing)
Topic: State tax deductible 529
Replies: 6
Views: 1608

Re: Switching Banks

In addition to the hassle factor of the RCA and possible fees in months you don't meet the requirements, also consider the opportunity cost of lost credit card rewards from the 12 monthly debit card transactions. Jim That's a good point. I actually have not been playing the credit card rewards game...
by Middle
Tue Apr 22, 2014 12:45 pm
 
Forum: Personal Finance (Not Investing)
Topic: Switching Banks
Replies: 30
Views: 3164

Re: Switching Banks

That rate is probably a teaser that won't last. The interest on $25k at 2.25% is about $560 a year, so maybe it'll be worth the hassle if they keep the deal going for long enough. OTOH, I suspect you'll be looking at a rate of .1 or .2% in a relatively short time. Jim Ah, now this is what was in th...
by Middle
Mon Apr 21, 2014 12:23 pm
 
Forum: Personal Finance (Not Investing)
Topic: Switching Banks
Replies: 30
Views: 3164

Re: Switching Banks

Yeah, I probably should retract my side comment as it does lend it itself to opening it up to a political discussion.

Back to my OP, I was looking for additional considerations in my pursuit of changing banks, and it has also led me to exploring a new or additional credit card.
by Middle
Sat Apr 19, 2014 3:53 pm
 
Forum: Personal Finance (Not Investing)
Topic: Switching Banks
Replies: 30
Views: 3164

Re: Switching Banks

So I've been reading some threads on credit card offers and am considering adding another. My current card gets no promo offers as it is tied to the Nature Conservancy but I really don't know how much they benefit. Looks like the Amex Blue Preferred or Everyday, Chase Sapphire, Fidelity Amex, and Pe...
by Middle
Fri Apr 18, 2014 3:28 pm
 
Forum: Personal Finance (Not Investing)
Topic: Switching Banks
Replies: 30
Views: 3164

Re: Switching Banks

Thanks for the replies. Interesting about the recommendation to have more than one credit card. My credit rating is very good so I'm not trying to build it up and I prefer the simplicity of a single credit card, but I thought I had read somewhere that opening up additional credit cards was a negativ...
by Middle
Thu Apr 17, 2014 12:29 pm
 
Forum: Personal Finance (Not Investing)
Topic: Switching Banks
Replies: 30
Views: 3164

Switching Banks

I have had a BofA checking account since 1992 without any troubles at all. I try to manage my accounts there such that I pay no fees but that has required keeping some cash there which currently pays nothing. I am considering switching to a local credit union that pays 2.25% interest on balances up ...
by Middle
Wed Apr 16, 2014 8:01 pm
 
Forum: Personal Finance (Not Investing)
Topic: Switching Banks
Replies: 30
Views: 3164

Re: Pay Off Mortgage? Better Advice?

There are many ways to look at the dilemma of paying off a mortgage or investing in terms of concrete numbers. Search around this forum and you'll probably find a few threads. Here are the reasons why if I were you, I wouldn't make extra payments on mortgage: 1. It's a less liquid asset. 2. Your cur...
by Middle
Thu Apr 03, 2014 8:24 pm
 
Forum: Personal Finance (Not Investing)
Topic: Pay Off Mortgage? Better Advice?
Replies: 11
Views: 1317

Re: My "Motley Fool" Interview

Everyone seemed to have liked the interview, but perhaps you have deleted it? The link doesn't link to the interview or did I miss something?
by Middle
Wed Mar 26, 2014 7:08 pm
 
Forum: Investing - Theory, News & General
Topic: My "Motley Fool" Interview
Replies: 8
Views: 2023

Cash in Roth

I need some clarification on best location of different assets. It's probably not the best idea to keep much cash in a Roth account, right? I'm thinking in terms of someone who still has 15 years to retirement, you want to give that Roth the opportunity to grow with assets that have a higher expecte...
by Middle
Wed Mar 26, 2014 1:02 pm
 
Forum: Investing - Theory, News & General
Topic: Cash in Roth
Replies: 12
Views: 1680

Re: Statement of the Retirement Funding Problem

I'd agree the cases in which it would be optimal to fork everything over seem limited. However, realize that by creating an appropriate floor with partial annuitization allows one to get higher return in the remaining portfolio by taking a higher equity share. Dollar per dollar an annuity for someo...
by Middle
Tue Mar 25, 2014 7:04 pm
 
Forum: Investing - Theory, News & General
Topic: Statement of the Retirement Funding Problem
Replies: 89
Views: 6717

Re: Statement of the Retirement Funding Problem

@Middle - You'll want to read up a bit more on annuities and what mortality credits are. SPIAs are really a longevity insurance policy and their return and utility to the individual comes from pooled longevity risk. If you think SPIAs are "betting against a corporation" then cancel all yo...
by Middle
Tue Mar 25, 2014 3:46 pm
 
Forum: Investing - Theory, News & General
Topic: Statement of the Retirement Funding Problem
Replies: 89
Views: 6717

Re: Statement of the Retirement Funding Problem

I have a couple of thoughts on this. For one, it is my understanding that this idea that all our parents had a defined benefit plan pension is a little misleading. I wish I could recall exactly, but I read somewhere that at its peak, something like 34% of American workers had a defined pension. And ...
by Middle
Tue Mar 25, 2014 1:15 pm
 
Forum: Investing - Theory, News & General
Topic: Statement of the Retirement Funding Problem
Replies: 89
Views: 6717

Re: Understanding the LT Cap Gains Tax

Oh ok, sorry I don't have the tax return in front of me, but so the loss carryover actually does count even though LTCP are taxed at 0%.

Then that makes perfect sense. Thanks!

Edit: Now I have looked at my own return and see where it all falls in.
by Middle
Mon Mar 24, 2014 1:27 pm
 
Forum: Investing - Help with Personal Investments
Topic: Understanding the LT Cap Gains Tax
Replies: 11
Views: 758

Re: Understanding the LT Cap Gains Tax

But whether or not my hypothetical gain exceeds the loss carryover it shouldn't matter, right? Because even though it is added to the income line, it is later taken out in the tax worksheet because of being in the 15% bracket (as noted by earlyout above).
by Middle
Mon Mar 24, 2014 12:58 pm
 
Forum: Investing - Help with Personal Investments
Topic: Understanding the LT Cap Gains Tax
Replies: 11
Views: 758

Understanding the LT Cap Gains Tax

Here's what I understand:For someone in the 15% Fed tax bracket it means they pay 0 long term cap gains tax provided that the cap gains don't push them over the ceiling of the 15% tax rate. I recently experimented with this using Turbo tax, and with a return that had some carryover of losses, I stil...
by Middle
Thu Mar 20, 2014 12:37 pm
 
Forum: Investing - Help with Personal Investments
Topic: Understanding the LT Cap Gains Tax
Replies: 11
Views: 758

Re: interesting article on rebalancing using vanguard data

It might be worthwhile to check into a Vanguard study that was more thorough than this one by Arends and determined basically the differences in returns is not that great among the various rebalancing periods. The bottom line was "that for most broadly diversified stock and bond fund portfolios ...
by Middle
Tue Feb 18, 2014 1:21 pm
 
Forum: Investing - Theory, News & General
Topic: interesting article on rebalancing using vanguard data
Replies: 6
Views: 624

Watch Transfers or Double Trouble

Just happened to look into my VG account today and I'm glad I did. The cash balance was notably higher and after I dug a little deeper it turns out that a transfer to the Prime Money Market account went in twice. I'm pretty darn sure I only made the one transfer but it's possible that it's my error....
by Middle
Tue Feb 04, 2014 3:14 pm
 
Forum: Investing - Theory, News & General
Topic: Watch Transfers or Double Trouble
Replies: 2
Views: 367

Re: Bonds - Throw it all on the table!!!

1) Total Bond Fund Index, Short Term Inv Grade Index, Loomis Sayles Strategic Income, Pimco Total Return. 2) All held in Roth, tIRA, and 401k. 3) I actually don't know the breakdown but I listed them in roughly descending order of allocation. 4) Age-40%. More aggressive than most, but I haven't like...
by Middle
Thu Jan 30, 2014 8:08 pm
 
Forum: Investing - Theory, News & General
Topic: Bonds - Throw it all on the table!!!
Replies: 135
Views: 14948

Re: best financial podcasts for bogleheads?

I have downloaded Stitcher on my iphone to catch podcasts of This American Life, Radiolab, Freakonomics, and a couple of others. However, I have found that I just can't get into a podcast rhythm. I much prefer to read the blogoshpere.
by Middle
Tue Jan 28, 2014 12:51 pm
 
Forum: Investing - Theory, News & General
Topic: best financial podcasts for bogleheads?
Replies: 10
Views: 1309

Re: Is cash trash or king? Market timing

I think the pithy wall street sayings can only take you so far and once you dig deeper often don't work for your personal situation.
by Middle
Mon Jan 27, 2014 8:20 pm
 
Forum: Investing - Theory, News & General
Topic: Is cash trash or king? Market timing
Replies: 30
Views: 2578

The PenFed Craze

I don't know if its really a craze but my perception is that a lot of folks are excited about these PenFed 3% 5 yr CDs and have been piling in. Anyone know if PenFed has taken on too much or whether there is any reason to have concern over this and their subsequent obligations? They did extend the o...
by Middle
Tue Jan 21, 2014 4:51 pm
 
Forum: Investing - Theory, News & General
Topic: The PenFed Craze
Replies: 32
Views: 4986

Re: Rebalancing into Bonds

True enough midareff. My post is a little tongue in cheek, but also just an acknowledgement at how it can be hard to do. At least I think its a little hard.
by Middle
Mon Dec 23, 2013 6:37 pm
 
Forum: Investing - Theory, News & General
Topic: Rebalancing into Bonds
Replies: 6
Views: 663

Rebalancing into Bonds

I did some more rebalancing today. I'm doing this probably slower than I should, partly because its hard, partly because I wrestle with the Bonds picture between trying to think I can outguess the future and sticking to a simple plan, partly because my portfolio is up much more and it takes relative...
by Middle
Mon Dec 23, 2013 5:00 pm
 
Forum: Investing - Theory, News & General
Topic: Rebalancing into Bonds
Replies: 6
Views: 663

Re: Vanguard hauls in 98% of new money in 2013?

Noyo - I think the distinction there is that this article is only focused on mutual funds. So does not include ETFs.
by Middle
Thu Dec 19, 2013 7:41 pm
 
Forum: Investing - Theory, News & General
Topic: Vanguard hauls in 98% of new money in 2013?
Replies: 8
Views: 1925

Re: Vanguard hauls in 98% of new money in 2013?

JP Morgan had $10.4 billion of inflows and was only one of two with a net positive flow.
by Middle
Thu Dec 19, 2013 6:04 pm
 
Forum: Investing - Theory, News & General
Topic: Vanguard hauls in 98% of new money in 2013?
Replies: 8
Views: 1925

Re: Vanguard hauls in 98% of new money in 2013?

Point taken, but nonetheless, there are still a lot of mutual funds out there being funded through 401ks with limited options.
by Middle
Thu Dec 19, 2013 5:58 pm
 
Forum: Investing - Theory, News & General
Topic: Vanguard hauls in 98% of new money in 2013?
Replies: 8
Views: 1925

Vanguard hauls in 98% of new money in 2013?

I just read that 98% of U.S. equity fund inflows went to Vanguard in 2013. 98%? Could that be correct? That seems astounding to me. I mean, aren't there still a ton of 401ks that don't offer Vanguard funds? Or does this illustrate how many active managers are also using Vanguard funds ? I knew that ...
by Middle
Thu Dec 19, 2013 5:30 pm
 
Forum: Investing - Theory, News & General
Topic: Vanguard hauls in 98% of new money in 2013?
Replies: 8
Views: 1925

Re: When has Total Intl outperformed Total US?

Fair enough cb474. I was not suggesting that 70/30 is the gospel and I merely noted that the reason for my questions on International allocation stem from the very points that Rick starts his post with in terms of how over long term measures international indexes have lagged U.S. equity indexes. And...
by Middle
Thu Dec 05, 2013 5:17 pm
 
Forum: Investing - Theory, News & General
Topic: When has Total Intl outperformed Total US?
Replies: 17
Views: 3315

Re: Feedback Requested on Long-term Investing Strategy

Your 401k has terrific choices which may mean that you are getting hit with other administrative fees. I would just double check if nothing else just to know what fees you might be responsible for. With ERs that low, the provider is not making any money. Could be your employer is paying the provider...
by Middle
Tue Dec 03, 2013 5:08 pm
 
Forum: Investing - Help with Personal Investments
Topic: Feedback Requested on Long-term Investing Strategy
Replies: 14
Views: 1094

Re: "Is a Roth IRA conversion on your year-end checklist?"

For me, it is not on my list. I did a big conversion in 1999 (or thereabouts) which I'm not even sure was a good choice for me, but it's done. So even though my tax deferred accounts have now outgrown the tax exempt, there is still a sizable portion that should provide me with a little flexibility i...
by Middle
Tue Dec 03, 2013 3:34 pm
 
Forum: Investing - Theory, News & General
Topic: "Is a Roth IRA conversion on your year-end checklist?"
Replies: 28
Views: 1918

Re: When has Total Intl outperformed Total US?

Even though I doubt that Rick Ferri has seen this post, he has a post on his blog today that sure seems to go right at what I am mulling here (http://www.rickferri.com/blog/investments/foreign-stocks-for-the-long-run/). It's a good read with a nice little study on risk adjusted returns that seem to ...
by Middle
Tue Dec 03, 2013 1:29 pm
 
Forum: Investing - Theory, News & General
Topic: When has Total Intl outperformed Total US?
Replies: 17
Views: 3315

Re: What are the consequences of Fed's tapering?

Tapering has little to do with inflation. If the Fed starts tapering it just signals they may soon follow with higher real interest rates to prevent inflation. The Fed can raise real rates as high as necessary to maintain their target of 2% inflation. Yes, although this is the message that the Fed ...
by Middle
Wed Nov 27, 2013 5:32 pm
 
Forum: Investing - Theory, News & General
Topic: What are the consequences of Fed's tapering?
Replies: 12
Views: 959

Re: What are the consequences of Fed's tapering?

I just read that the Fed's monthly purchases represent about 6% of the bond market, which while significant, is hardly dominant.
by Middle
Wed Nov 27, 2013 5:29 pm
 
Forum: Investing - Theory, News & General
Topic: What are the consequences of Fed's tapering?
Replies: 12
Views: 959

Re: When has Total Intl outperformed Total US?

Yes, sorry about the typo, I have fixed it in the OP.

And yes, of course the admiral fund is better, it was more of a general theory question.

My limited research of returns could not produce an international outperformance over 6m, 2yr, 5yr or 10yr.
by Middle
Wed Nov 27, 2013 5:25 pm
 
Forum: Investing - Theory, News & General
Topic: When has Total Intl outperformed Total US?
Replies: 17
Views: 3315

When has Total Intl outperformed Total US?

I am revisiting my AA and began wondering about the International portion. My basic question is, in a more globally connected world, does the International equities allocation still offer diversification? If the US equity market does poorly, won't global markets suffer as well? When has VGTSX outper...
by Middle
Wed Nov 27, 2013 3:17 pm
 
Forum: Investing - Theory, News & General
Topic: When has Total Intl outperformed Total US?
Replies: 17
Views: 3315

Re: Roth IRA vs Taxable Account

Gotcha, thank you! I think I'm starting to get all this figured out. So say I invested $10,000 in a taxable account. I received $500 in dividends (reinvested) and it gained $1,000 in year one by share price. I pay taxes on the dividends, $500, at the end of the year and it's added to my basis. So t...
by Middle
Wed Sep 11, 2013 1:41 pm
 
Forum: Investing - Help with Personal Investments
Topic: Roth IRA vs Taxable Account
Replies: 20
Views: 1580

Re: Selling in Taxable to Invest in Tax Deferred

This is what you are missing: even though line 13 gets added to taxable income which end up on line 43. Line 13 then gets SUBTRACTED OUT again when calculating the tax using the schedule D worksheet. If you have any capital gains, you do NOT use the tax tables. You use the worksheet. Yes! Thank you...
by Middle
Tue Sep 10, 2013 8:23 pm
 
Forum: Investing - Help with Personal Investments
Topic: Selling in Taxable to Invest in Tax Deferred
Replies: 19
Views: 1309

Re: Selling in Taxable to Invest in Tax Deferred

Hmmm, I must be missing something here because when I look at my return I see that capital gains are included on line 13 as part of income to determine AGI which becomes the basis for your taxable income after the deductions are made. So my understanding is that if the taxable income exceeds that $7...
by Middle
Tue Sep 10, 2013 7:06 pm
 
Forum: Investing - Help with Personal Investments
Topic: Selling in Taxable to Invest in Tax Deferred
Replies: 19
Views: 1309

Re: Selling in Taxable to Invest in Tax Deferred

The better deal is: sell appreciated shares to get zero % gains --> 401k or deductible IRA --> ability for more zero % gains due to having lowered your taxable income further below the top of the 15% bracket. :D But I'm just remembering that it's not really zero % gains in that the LTCG are still f...
by Middle
Tue Sep 10, 2013 6:29 pm
 
Forum: Investing - Help with Personal Investments
Topic: Selling in Taxable to Invest in Tax Deferred
Replies: 19
Views: 1309

Re: Selling in Taxable to Invest in Tax Deferred

I stand corrected. I do qualify for the zero percent capital gains tax. I'm not sure how I got that confused. In which case, I would benefit by incurring a capital gains tax at zero percent and lowering my current taxable income amount, right? The only downside being the loss of access to that money.
by Middle
Tue Sep 10, 2013 3:56 pm
 
Forum: Investing - Help with Personal Investments
Topic: Selling in Taxable to Invest in Tax Deferred
Replies: 19
Views: 1309
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