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Re: Yet Another Portfolio Review Request

His 401k (59%; adds $19.4k/yr including employer contribution = 59% of annual contributions) 55%, Vanguard S&P 500 Index Fund Admiral (VFIAX) ER 0.05% 04%, Harbor International Inst (HAINX) ER 0.77%, <= large companies in developed markets 00%, Vanguard Intermediate-Term Treasury Admiral (VFIUX...
by bdpb
Wed Mar 11, 2015 10:23 pm
 
Forum: Investing - Help with Personal Investments
Topic: Yet Another Portfolio Review Request
Replies: 6
Views: 778

Re: Pay down FHA mortgage to refinance or invest more?

What is your state tax rate? Your fed rate is 15%. I'm not sure there is a lot to be gained by contributing to your 401k (depending on state tax rate) before the high rate debt is eliminated. Since you probably won't be maxing out the 401k after the debt is paid, you're really not losing much by not...
by bdpb
Tue Mar 10, 2015 8:55 pm
 
Forum: Investing - Help with Personal Investments
Topic: Pay down FHA mortgage to refinance or invest more?
Replies: 3
Views: 268

Re: Portfolio review

Debt: mortgage of $220k @ 3.25% for another 12 years Contributions: Taxable - approximately $50k per year Questions: I’ve tried to follow a 3-fund portfolio and tried to use tax-efficient placement (e.g. international in taxable, bonds in pre-tax, US market in roth). Recently, I ended up adding som...
by bdpb
Fri Mar 06, 2015 5:57 pm
 
Forum: Investing - Help with Personal Investments
Topic: Portfolio review
Replies: 3
Views: 493

Re: Portfolio Review and Strategy: Finally doing it on our o

Tax Rate: 39.6% Federal, 5% State, City 2.25% New annual Contributions $18,000 his 403b $5,200 his 403b company match $5,200 his 401a company funded on annual basis $18,000 taxable Debt : Mortgage: 573k @ 4.45%, $0 credit cards/short term debt Student Loans : 24k @ 2.77%, 47k @ 2.875% (paid down >8...
by bdpb
Mon Mar 02, 2015 7:33 pm
 
Forum: Investing - Help with Personal Investments
Topic: Portfolio Review and Strategy: Finally doing it on our own!
Replies: 3
Views: 566

Re: Portfolio review

Debt: about 91k (out of 147,500) left on Mortgage at 5.5% - going to move this year sometime also about 7k left on a car loan at 3.7%, can pay off if it would be a good idea but the loan isn't too bad. Tax Rate: 25% Federal, 4.99% State Taxable – Fidelity 31% Spartan® Total Market Index Fund - Fide...
by bdpb
Sat Feb 28, 2015 11:55 am
 
Forum: Investing - Help with Personal Investments
Topic: Portfolio review
Replies: 24
Views: 2198

Re: 401K allocation and contribution question

Emergency Fund: $30K (working to beef it up) Debt: 264K mortgage @ 4% 401K w/ ~$180K 100% vested 15% company match/contributing 15% until 17.5K is reached 64% Balanced/36% Employer security Balanced is all in DME20 Question 1: I've selected the "Do it for me" button for 401K allocation in...
by bdpb
Sun Feb 22, 2015 1:47 pm
 
Forum: Investing - Help with Personal Investments
Topic: 401K allocation and contribution question
Replies: 6
Views: 366

Re: Withdraw TSP to Convert Traditional to Roth?

You can convert traditional IRA, too.

Make a 2014 contribution before 4/15/2015 at last year's tax rate and immediately convert at 2015 tax rate.
by bdpb
Sun Feb 22, 2015 12:05 am
 
Forum: Investing - Help with Personal Investments
Topic: Withdraw TSP to Convert Traditional to Roth?
Replies: 13
Views: 1200

Re: where should i pay taxes from?

I think you have it right, but just a quick reminder. The LTCG consumes it's portion of the 25% bracket leaving less room for conversion.

Do you make sizable charitable contributions? If so, donate the taxable stocks to avoid CG tax and take former CC from income to pay for conversion.
by bdpb
Thu Feb 12, 2015 1:52 am
 
Forum: Personal Finance (Not Investing)
Topic: where should i pay taxes from?
Replies: 24
Views: 1725

Re: What should my next savings goal be?

Debt: Mortgage 5%: 187k (~87% of original value) Student Loan at 5.125%: 3.2k One priority we have right now is to move from our townhouse into a single family home in the next few years, so I would like to save for a down payment. Pay mortgage down to remove PMI? Don't "invest" in bonds ...
by bdpb
Thu Feb 12, 2015 1:35 am
 
Forum: Investing - Help with Personal Investments
Topic: What should my next savings goal be?
Replies: 5
Views: 858

Re: Retirement for self-employed parents

I will mostly likely open an account in their name and put $1,000 in Target Retirement 2020 every year and forget about it until it comes time to withdraw. It seems simple and worthwhile. I don't want to complicate the matter. Do you guys see any issue with this? You should check into the federal S...
by bdpb
Mon Feb 09, 2015 11:56 pm
 
Forum: Investing - Help with Personal Investments
Topic: Retirement for self-employed parents
Replies: 12
Views: 719

Re: Newb Dilemma

Our AGI on our 2014 taxes was $189,000, so just below the $191,000 eligibility cap on Roth contributions. If I've done my math/research correctly, based off of our 2014 AGI we could contribute around 3,250 towards a Roth now. However, I fully expect that our income will be beyond the $191K cap in 2...
by bdpb
Sun Feb 08, 2015 8:53 pm
 
Forum: Investing - Help with Personal Investments
Topic: Newb Dilemma
Replies: 10
Views: 981

Re: Money into Retirement Accounts or Mortgage Payoff

What are your state income tax rates?

Is there a state tax exemption for IRA/DCP withdrawals? Might you move to a different state for retirement?

What are the Expense Ratios for the funds in your 457b?

Will your tax rate be higher or lower in retirement than it is now?
by bdpb
Sun Feb 08, 2015 7:00 pm
 
Forum: Investing - Help with Personal Investments
Topic: Money into Retirement Accounts or Mortgage Payoff
Replies: 10
Views: 1256

Re: Portfolio Advice

Here are the investment options for my employer plan at Fidelity. SPTN 500 INDEX ADV (FUSVX) (0.07%) SPTN EXT MKT IDX ADV (FSEVX) (0.07%) SPTN INTL INDEX ADV (FSIVX) (0.17%) SPTN US BOND IDX ADV (FSITX) (0.17%) These are the funds that you should use in your 401k. The same funds or similar Vanguard...
by bdpb
Fri Feb 06, 2015 9:19 am
 
Forum: Investing - Help with Personal Investments
Topic: Portfolio Advice
Replies: 10
Views: 1103

Re: 401K - New Fund Available - Help!

You will be switching VBTLX from your IRA to your 401k. Is the ER for VBTLX the same in the 401k? Are there other charges for investing in VBTLX in your 401k?

If no additional charges or expenses, then it's a good move (given you're ok with the AA discussion above).
by bdpb
Wed Feb 04, 2015 1:39 pm
 
Forum: Investing - Help with Personal Investments
Topic: 401K - New Fund Available - Help!
Replies: 6
Views: 542

Re: Student Loan Payoff Advice

My practice of paying the minimum on a (relatively) low fixed rate student loan and investing the difference has worked well for me. I am now questioning whether to continue it, as I've had a nice run of investment returns and don't see screaming value in the markets. You should not compare your lo...
by bdpb
Wed Feb 04, 2015 12:06 am
 
Forum: Personal Finance (Not Investing)
Topic: Student Loan Payoff Advice
Replies: 11
Views: 1189

Re: Help me find a topic/article to present to my class

I have a financial news presentation for my intro to finance course next week. I would like to highlight passive/boglehead style investing. However, one of the requirements is that it must be something current and relevant. In other words it must have an element of "noise" and the present...
by bdpb
Tue Feb 03, 2015 11:51 pm
 
Forum: Investing - Theory, News & General
Topic: Help me find a topic/article to present to my class
Replies: 8
Views: 513

Re: My Traditional IRA conversion to Roth IRA dilemma

I selected 25% instead of 15% because most likely my career in the future will be better than what it is now. Also, I chose to include state taxes and chose 10% and 11%. I think CA tax rate is 10% and I'm pretty sure it'll be more than that in the future, so I chose 11% as the withdrawal tax %. The...
by bdpb
Tue Feb 03, 2015 11:12 pm
 
Forum: Investing - Help with Personal Investments
Topic: My Traditional IRA conversion to Roth IRA dilemma
Replies: 34
Views: 2230

Re: Portfolio Advice

Debt: $14k @ 5.59% Boat Taxable 8% Employer Stock Options 1% 529 Plan (Vanguard Moderate Age-Based Option) 4% Vanguard 500 Index (VFIAX) (0.05%) 2% Vanguard Life Strategy Moderate Growth (VSMGX) (0.16%) 1% Vanguard Short Term Investment Grade (VFSTX) (0.20%) His Employer Profit Sharing Plan 18% Fid...
by bdpb
Tue Feb 03, 2015 10:53 pm
 
Forum: Investing - Help with Personal Investments
Topic: Portfolio Advice
Replies: 10
Views: 1103

Re: 401K Asset Allocation Help

My pre-tax contribution rate will be 6%, the maximum company match. I'm trying for aggressive growth over a long period of time and plan on rebalancing annually. Any sort of thoughts, opinions, and feedback are appreciated. Make part of your plan to increase your savings rate every year until it hu...
by bdpb
Tue Feb 03, 2015 10:18 pm
 
Forum: Investing - Help with Personal Investments
Topic: 401K Asset Allocation Help
Replies: 3
Views: 357

Re: My Traditional IRA conversion to Roth IRA dilemma

I discovered this neat little calculator: http://www.schwab.com/public/schwab/investing/retirement_and_planning/understanding_iras/ira_calculators/roth_ira_conversion For the $10,300 I'd like to convert from a Traditional IRA to a Roth IRA, while using a taxable income of $31,643, the results show ...
by bdpb
Tue Feb 03, 2015 9:22 pm
 
Forum: Investing - Help with Personal Investments
Topic: My Traditional IRA conversion to Roth IRA dilemma
Replies: 34
Views: 2230

Re: 401K - New Fund Available - Help!

My work 401K just introduced Vanguard Total Bond Market Index Fund Admiral Shares (VBTLX). It is my understanding that the funds with the highest expected gains should go into the Roth, which won't be taxed. There are reasons for moving higher expected return assets to your Roth, but those reasons ...
by bdpb
Tue Feb 03, 2015 8:13 pm
 
Forum: Investing - Help with Personal Investments
Topic: 401K - New Fund Available - Help!
Replies: 6
Views: 542

Re: How to report for Tax, Student computer purchase from 52

Will you eventually spend all of the 529 for future "normal" qualified expenses (i.e., tuition, room and board)?

If so, I wouldn't bother testing the IRS by trying to buy a computer this way. Just pay cash.

You'd prefer to keep the money in the 529 as long as possible anyway.
by bdpb
Mon Feb 02, 2015 3:57 pm
 
Forum: Personal Finance (Not Investing)
Topic: How to report for Tax, Student computer purchase from 529
Replies: 22
Views: 917

Re: How to invest taxable account?

If we don't use just munis, what would you suggest. Would something like total bond make sense for a small portion since it is comprised of about 40% treasury bonds which are exempt from state taxes (I think, right?)? Why not all treasuries for anything not in munis? There is little need for anythi...
by bdpb
Mon Feb 02, 2015 3:06 pm
 
Forum: Investing - Help with Personal Investments
Topic: How to invest taxable account?
Replies: 6
Views: 1113

Re: Priorities...

On going Savings: Maxing his Vanguard Roth IRA with monthly deposits. Try to max her Vanguard Roth IRA at the end of each year (depends on size of his variable year end bonus) $25/ month into child 529 plan (Feel guilty not helping out the little one a bit....) Two other quick things after looking ...
by bdpb
Sat Jan 31, 2015 10:07 pm
 
Forum: Investing - Help with Personal Investments
Topic: Priorities...
Replies: 14
Views: 2009

Re: Priorities...

We do get a state tax break with our 529s Great. Take the 0% loan and fund the 529 with it. Unless you think you'd be putting an undue burden on the lender, I see nothing wrong with this. My guess is, the lender has the money to lend and has offered because they are in a position to help their daug...
by bdpb
Sat Jan 31, 2015 8:33 pm
 
Forum: Investing - Help with Personal Investments
Topic: Priorities...
Replies: 14
Views: 2009

Re: Priorities...

Should I reduce the 401k and beef up my wife's 529 to save my pride an avoid a 0% interest loan?? I would have no objection to accepting a 0% loan as long as I didn't feel like I was being held hostage in some other way. It might even make the lender feel good, too. Do you get a state tax break on ...
by bdpb
Sat Jan 31, 2015 12:03 pm
 
Forum: Investing - Help with Personal Investments
Topic: Priorities...
Replies: 14
Views: 2009

Re: When to harvest this gain?

Just do it.

It's virtually equivalent to having an extra 10k income and a higher 7k limit for Roth contributions. If you received an extra 10k income and could contribute 12.5k (5.5k actual limit plus a one time extra 7k limit just for you), you would contribute 12.5k to Roth, right?
by bdpb
Sat Jan 31, 2015 11:17 am
 
Forum: Investing - Help with Personal Investments
Topic: When to harvest this gain?
Replies: 3
Views: 437

Re: New to the forum, help with Portfolio Review

H Debt: $145000 - all student loans b/w my wife and I Interest Rate Breakdown: $32000 @ 2.33% $63000 @ 4.5% $50000 @ 6.8% Desired Asset Allocation: 80% stocks, 20% bonds Desired International Allocation: 20% of stocks His Roth IRA: 31% Vanguard Target Retirement Fund 2045 Her Roth IRA: 7% Vanguard ...
by bdpb
Sat Jan 31, 2015 11:07 am
 
Forum: Investing - Help with Personal Investments
Topic: New to the forum, help with Portfolio Review
Replies: 5
Views: 598

Re: Confusing 401K & Roth IRA situations

Set aside savings so that you'll be able to reach 18k deductible in your 401k and 11k Roth contributions, if that's your savings goal. Don't contribute to IRAs until near the end of the year when all the variables are known. Just add the extra savings to your EF for now. Assume the best case for mid...
by bdpb
Sat Jan 31, 2015 10:28 am
 
Forum: Investing - Help with Personal Investments
Topic: Confusing 401K & Roth IRA situations
Replies: 10
Views: 931

Re: Arguments for Saving/Investing vs Mortgage prepay

Does she pay PMI? If so, is it likely that this can be eliminated at some point with extra mortgage payments? If the PMI can eventually be eliminated, her return will be much higher than her mortgage interest rate. She should have a healthy EF. Unless her parent can assist in emergencies. If she doe...
by bdpb
Sat Jan 31, 2015 1:57 am
 
Forum: Personal Finance (Not Investing)
Topic: Arguments for Saving/Investing vs Mortgage prepay
Replies: 4
Views: 471

Re: Rick Ferri looking to internationalize his portfolio

Rick Ferri wrote:The more people who hate this idea, the better I like it. :D

Which "people" are you talking about?

TV talking heads? or Bogleheads?
by bdpb
Sat Jan 31, 2015 1:37 am
 
Forum: Investing - Theory, News & General
Topic: Rick Ferri looking to internationalize his portfolio
Replies: 331
Views: 43510

Re: Roth or Traditional IRA?

Bond yields are much lower than your mortgage interest rate. You should pay down your mortgage instead of investing in bonds, especially since you have so little tax advantage accounts where you should be holding your bonds and any other tax inefficient funds you made decide on. My mortgage interes...
by bdpb
Sat Jan 31, 2015 1:28 am
 
Forum: Investing - Help with Personal Investments
Topic: Roth or Traditional IRA?
Replies: 6
Views: 592

Re: What is your portfolio comparison benchmark?

Benchmark? Why is there a need for a benchmark if using index funds? I'm with pkcrafter here, except to add "... index funds and an Investment Policy Statement?" What benchmark should I use for? 20% US total market index fund 10% US SCV index fund 5% US REIT index fund 15% Intl total mark...
by bdpb
Sat Jan 31, 2015 1:18 am
 
Forum: Investing - Help with Personal Investments
Topic: What is your portfolio comparison benchmark?
Replies: 11
Views: 1052

Re: Roth or Traditional IRA?

Tax Filing Status: Married Filing Jointly Salary: $148,000 (me + wife) Federal Tax: 25% based on salaries but gains in my taxable account may push us above $151,200 and into the 28% bracket? My Taxable Account: $311,101.20 (87.9% of portfolio) Taxable Contribution: 45k Debt: 320k mortgage @ 3.875%,...
by bdpb
Sat Jan 31, 2015 12:43 am
 
Forum: Investing - Help with Personal Investments
Topic: Roth or Traditional IRA?
Replies: 6
Views: 592

Re: Mysterious Fees in my 401(k)

One way this can happen is if you have assets in a BrokerageLink (BL) account. In one of my 401k, I hold assets in the core account which contains institutional funds (not retail mutual funds) and assets in the BL. It used to be that all the recordkeeping costs were baked into the ER of the institut...
by bdpb
Sat Jan 31, 2015 12:06 am
 
Forum: Investing - Help with Personal Investments
Topic: Mysterious Fees in my 401(k)
Replies: 14
Views: 1396

Re: How do I balance debt v. investing in my situation

I would not give up tax deductible 403b contributions in the state of CA (probably, 9.3% tax rate) before I gave up Roth IRA contributions. If you insist on keeping the cash in your taxable account, withdraw previous Roth IRA contributions to pay of that extremely high 6.8% debt. You are not maxing ...
by bdpb
Fri Jan 30, 2015 5:11 pm
 
Forum: Investing - Help with Personal Investments
Topic: How do I balance debt v. investing in my situation
Replies: 28
Views: 1948

Re: New to investing, must determine a course of action

If the current home is up for sale and likely to be sold quickly, I don't see a lot of benefit to paying off that mortgage. It wouldn't hurt, but not likely to help much since it will be paid off soon anyway. I would probably just keep the cash on hand in case who knows what comes up. You will get ...
by bdpb
Fri Jan 30, 2015 5:00 pm
 
Forum: Investing - Help with Personal Investments
Topic: New to investing, must determine a course of action
Replies: 9
Views: 885

Re: A low fee (~0.30%/year) *LOCAL* advisor?

My parents, who live in the same metro area as I do (St. Louis), may want to use an AUM style advisor. (Portfolio Solutions, home of Rick Ferri, is at 0.37%/year through $3M, 0.20%/year thereafter, minimum $3700/year. They're in Michigan, however.) Portfolio Solutions requires 500k minimum. At that...
by bdpb
Thu Jan 29, 2015 10:36 pm
 
Forum: Investing - Help with Personal Investments
Topic: A low fee (~0.30%/year) *LOCAL* advisor?
Replies: 11
Views: 1615

Re: How do I balance debt v. investing in my situation

Total retirement assets: 195,000 (divided mainly into my 403B and Roth, and her Trad IRA). Total cash savings: 26,000 Student loan debt (wife): 29,000, 6.8% fixed APR As others have said, don't take from your 403b or tIRA, but you should make an effort to eliminate the 6.8% debt. Tell us more about...
by bdpb
Thu Jan 29, 2015 9:58 pm
 
Forum: Investing - Help with Personal Investments
Topic: How do I balance debt v. investing in my situation
Replies: 28
Views: 1948

Re: A low fee (~0.30%/year) *LOCAL* advisor?

Try Buckingham.

Esteemed author and forum contributor, Larry Swedroe, is Director of Research.
by bdpb
Thu Jan 29, 2015 3:34 pm
 
Forum: Investing - Help with Personal Investments
Topic: A low fee (~0.30%/year) *LOCAL* advisor?
Replies: 11
Views: 1615

Re: New to investing, must determine a course of action

I have not been active in investing before. And by that, I mean that I contribute slightly over the max my employer will match to my 401k, and make regular deposits to savings. Debt: Current House: 170k at 4.75%, house is on the market Tax Rate: 28% Federal, No State His 401K: 7% American Funds 205...
by bdpb
Thu Jan 29, 2015 3:01 pm
 
Forum: Investing - Help with Personal Investments
Topic: New to investing, must determine a course of action
Replies: 9
Views: 885

Re: Refinance Math

So unless I have it wrong, even though my monthly payment would go from 1200 to 863, my payments would extend another five years and I would have actually paid more in interest in the end. Is that right? Yes, but you would have made higher payments for ten years. Rerun the numbers and instead of pa...
by bdpb
Wed Jan 28, 2015 9:01 pm
 
Forum: Personal Finance (Not Investing)
Topic: Refinance Math
Replies: 4
Views: 492

Re: Payoff Mortgage with investments in taxable accounts

Absolutely.... 3.0% which gives you tax deductible dollars is like gold. 14 years of inflation will make this look like monthly picnic money. Not if you invest in bonds that earn only 2%. It has nothing to do with inflation. It should be compared to a comparable risk investment, bonds. Listen to an...
by bdpb
Wed Jan 28, 2015 8:52 pm
 
Forum: Personal Finance (Not Investing)
Topic: Payoff Mortgage with investments in taxable accounts
Replies: 22
Views: 1748

Re: Why not a 2 fund portfolio like Bogle suggests

1 - If the SP 500 has been the standard for market performance for the past 40 years, why do many of the Vanguard funds have a substantial international component (timed retirement accounts, etc)? The same question can be asked about ex SP500 US stocks. Why do US funds invest in Small Caps stocks? ...
by bdpb
Wed Jan 28, 2015 8:32 pm
 
Forum: Investing - Theory, News & General
Topic: Why not a 2 fund portfolio like Bogle suggests
Replies: 36
Views: 4099

Re: Roth vs. Traditional 401K - with a twist

Now that I know you are in NYC and will leave, I think it is even more compelling to use the traditional 401(k) and not the Roth 401(k). Can you see how NY state and city income taxes figure into the decision? I would also suggest maximizing 401(k) contributions before doing any Roth IRA contributi...
by bdpb
Wed Jan 28, 2015 8:08 pm
 
Forum: Investing - Help with Personal Investments
Topic: Roth vs. Traditional 401K - with a twist
Replies: 18
Views: 1125

Re: SS Conclusion for Mom...Tell me if i'm right.

I'm not sure how strong prenups are where they live and how much he and she have accumulated since they've been married, but, have you looked at what portion of these after they were married assets might come to her in a divorce. It might make sense to plan for a divorce at some point in the future....
by bdpb
Tue Jan 27, 2015 8:03 pm
 
Forum: Personal Finance (Not Investing)
Topic: SS Conclusion for Mom...Tell me if i'm right.
Replies: 12
Views: 1358

Re: Are we starting out on the right foot? Portfolio Advice.

Our portfolio is practically nonexistent (~$750.00 in 401(k) – just started – and $205,000 in home equity) Debt: Mortgage - $260,000 at 4% for 26 more years (This is 56% of the value of the home) Tax Rate: 15% Federal, 9.3% State - CA New annual Contributions for 2015 $18,000 - his 401k (plus $1,23...
by bdpb
Tue Jan 27, 2015 7:42 pm
 
Forum: Investing - Help with Personal Investments
Topic: Are we starting out on the right foot? Portfolio Advice...
Replies: 1
Views: 265

Re: Play money- what is your process?

One wouldn't do this in the old days because the commissions would kill you. But today, no commissions and no taxes for the 3 trades I made. But it wasn't a zero cost trade. You did have to pay a bid/ask spread. Admittedly, that's a small number for VTI, but not necessarily for other funds like VSS.
by bdpb
Tue Jan 27, 2015 7:04 pm
 
Forum: Investing - Help with Personal Investments
Topic: Play money- what is your process?
Replies: 68
Views: 5377

Re: S&P 500 Index Fund in 403(b)

I like simplicity. Currently, I have 100% of my 403(b) with no match invested in (‪SVSPX) SSgA S&P 500 Index Fund – Class N (0.15%). Should I add a small and mid cap fund to approximate the Vanguard Total Stock Market Index Fund (VTSMX) which I hold in my Roth IRA and taxable account? Will it m...
by bdpb
Tue Jan 27, 2015 6:56 pm
 
Forum: Investing - Help with Personal Investments
Topic: S&P 500 Index Fund in 403(b)
Replies: 13
Views: 1105

Re: Rental Car Prices - is this the new normal ?

Google car rental reviews for the place you're going. You will find multiple web sites that do this. Shop each of these sites. Usually, they will show a table with companies on one axis and car size on the other axis, comparing their prices. Often times you will find an outlier or two that are good ...
by bdpb
Sun Jan 25, 2015 8:51 pm
 
Forum: Personal Consumer Issues
Topic: Rental Car Prices - is this the new normal ?
Replies: 89
Views: 8263
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