Bogleheads.org

Interesting, but I think it's going to get locked, due to the political nature of the piece.

Due to depreciation, I would only buy a Mustang if I lived in a location where I could drive it year round.

Having said that, it's a personal decision and if you want to do this as a "one time thing" and have the means to buy the Boss, go for it.

I gave up on total world due to the inflexibility of the allocation. I needed to be able to allocate more to int'l in my ira, since it isn't available through work and I do have an adequate US large cap index fund in my 401k.

These fees are not much higher than Fidelity's fees. I would definitely get the match. Beyond that I would look at the Bogleheads wiki on traditional versus roth. Which should give you guidance based on your marginal tax rate, eligibility for a traditional ira, etc. Also, try to find out what other ...

Up your percentage until it feels right. You'll know when your eating out and only the value menu items will do. Also, wear your clothes until when you turn the wrong way they rip (you'll know its time to get new). When baling wire no longer keeps the muffler on your car. I could go on, but all thes...

The price has already tripled and there hasn't been inflation or US dollar risk. Yet people are making the same argument about owning gold at $1400 per ounce they did at $500 per ounce. "Gold protects my portfolio." I don't hear much about the fact that the GLD started trading November 18...

New Balance 846.

I'm with the low bar theory on this one. $5 is small potatos, considering you can only earn 1% annually or $3 on that amount anyway. Its basically costing you $3 to have the convience of a checking accounting for 1 year.

I would include this in your fixed income allocation by using a tips fund or treasury securities. These would avoid the annual tax on income generated by the HSA account. HSA administrators have Vanguard funds, but not the tips fund. HSA bank has a TD Ameritrade brokerage option, where you could buy...

I-bonds, if you needs the money before 20 years. The EE bonds are only good if you have the time to wait until the value doubles in 20 years.

Remember on the i-bonds you will still need to wait a year before you can redeem them.

I sure hope if you're posting here that your "classic" is a mint condition Honda Civic or Toytoa Corolla from the 70s.

I would go with the following method:

1. 8 or 9 shots of your favorite 80 proof beverage and lump sum half.

2. DCA the remainder over a time period your comfortable with.

Well at today's price its only average a 15% return annually over the last 10 or 11 years. Hardly blood in the streets.

It would have to fall much further to be truly bloody. May be if it resembles the 73-74 stock market bear it would look that way.

1. Is it smarter to open and max out a Roth IRA my first year or to aggressively pay down a loan of $13,000 with an interest rate of %7.25? How much does a Roth need to be growing to make filling it preferable to paying down this loan more aggressively? 8 percent? If you can earn >7.25% on your Roth...

EE bonds from the very early 90s did even better by doubling in 12 years. I think some of the 80s doubled even quicker, but I'm to lazy too look up the exact doubling period.

I would be more concerned about the doubling period being increased. If you’re interested, I would buy now in case the doubling period would be increased. I would much rather have 20 yrs vs 22, 25, or whatever they might increase it to.

I have one with Fidelity and its expense ratio rose by about 20 basis points. As dickenjb pointed out the yield is what is important.

[/quote]Would you have otherwise invested in equities in the 401k? What benefit did you get for taking the money out instead of leaving it in the 401k?[/quote] That was my thought. Wouldn't it be a wash regardless if it was equities inside or outside the 401k? Taxes had to be paid to pay the loan ba...

Unless next month's inflation number is below zero, the next rate would be at least 0.66%. So for the year you would be getting at least 1.21% risk free.

Do you know of any means to determine if other 'older' EE issues, (I mean issued after 1983, say 1984, 1985, 1986, etc.) would not have that 4% interest rate? I am wondering if using 4% is a safe assumption for those bonds issued after 1983? Your can try the savings bond calculator on the Treasury ...

You're only taxed once. Your income is still reported as 50K on your W-2, however the money for taxes has already been withheld from your pay.

robjer wrote:Anybody think the fixed will climb off Zero for May I bonds? Maybe to .02?

No, even if they only offer 0.66% that beats the heck out of the vast majority of savings account rates. Plus the index to inflation guarantee is better than what a typical savings account can offer.

I think the decision to add these is up to the individual investor. I can see where several people feel they don't belong. However, if you pick an allocation let's say 15% for example and make it part of your IPS, that may work. You just have to remember to rebalance as you would with your other inv...

rickmerrill wrote:Sounds good to me, pile away!

I think it's a near no-brainer to pile away in tax-deferred with your 25% federal bracket and the high California state tax rates.

The fixed component has been zero since Nov. 2010. If you sell a bond with a zero fixed component, and buy a new bond with a zero fixed component, then you will basically be in the same place. I don't agree with this. :annoyed You're restarting the one year blackout period (can't cash it in) when y...

grabiner, Thanks for your detailed example. I plan on going over the math when I have some time. This is just one item I haven't been able to get a handle on.

Thanks for the replies. I wish I had access to those TSP expense ratios, but at least I'm working on getting to Admiral shares for a few of my funds.

Is there any reason that you should hold your international stock funds outside of your tax preference account space if you have enough room for them in your tax preference accounts? Is there any reason to hold in taxable, just to get the foreign tax credit? Also, how much on 10,000 is the foreign t...

Lump sum beats DCA 66% of the time. But doing 50% lump sum and the remaining 50% over 6 to 12 months is a pretty good compromise.

Browser wrote:If you can tell me where there is an FDIC insured savings account yielding anything close to 1% that's what I'd do too. More like 1/4% now.

There are a few here.

http://www.depositaccounts.com/savings/

Based on the information given I would not be buying additional i-bonds. The CD at 2.4% is doing better than a new i-bond is likely to do until it matures and the older i-bonds may have fixed rates. Also the older i-bonds would be closer to not incurring the 3 month penalty if cashed before 5 yrs. I...

abuss368 wrote:No interest or need for them.

See David Swensen's advice int he great book Unconvetional Success.

I think I read this book awhile ago. I may ponder a purchase of int'l bond, but probably stick with the equities for int'l.

WHL wrote:20 oz @ $29 / oz. Anyone else buy on this dip?

Sounds to me like market timing. It would only make sense to buy the dip if you had a target allocation to silver and you're IPS called for you to rebalance due to the dip.

What he said. You're in California and in a high income tax bracket, since you're doing your ira with the back-door method.

Well, Vanguard just released its latest analysis on the bond market and expects 1 to 2% returns over the next decade. I think that makes a good argument for anyone interested in EE bonds and it fits their time horizon.

I tend toward doing DCA if the potential of a 50% loss would make you lose sleep.

You could also do 1/2 lump sum and 1/2 DCA over a selected number of months.

Decide what recreational activity you like better and then sell either the ATV or the boat. Invest the proceeds (if any after paying off the loan) and use towards the next car.

I think this post would be best for some type of gambling forum.

Best to use mutual funds and a proper allocation. Hopefully you will see the light.

I would buy more bonds, because I would probably need to get my allocation back to my target.

In five years, however, nominal rate of new Ibonds goes up, but I am stuck holding the old low rate bonds with a fixed return for 30 years. There's no guarantee that the fixed rate will ever go up or at least go up enough to make the 0% fixed rate bonds look bad in comparison. Obviously if interest...

I think a lot of bogleheads posters are overly critical of the role of EE bonds. I agree with this. I still like i-bonds better for their inflation and deflation protection. They help by adding inflation-protection to short-term savings with potential as a longer (5+ yrs) term investment. The EE bo...

Maybe we are beginning the "lost decade" for gold.

The only way to fix it now, it to make sure you do not make the same mistake again for 2013..... Yes, this method will work best. 401K contributions have to be done in the CY the money going in is earned. If you have IRA space from 2012, I would make sure to max that by April 15th. You also may be ...

I have a separate 12 month emergency fund in a savings account. These contributions will be coming out of our monthly budget surplus. I've never taken a contribution out of my Roth in 5 years (even when closing on my home). I never intend to, just like the idea of Roth vs 401k at this point in our ...

Just a brief observation. I would work on a separate emergency fund with low risk, low return investments (ST CDs, MMA (FDIC insured), etc. Everything you're investing in now has a risk of decline, including the total bond index (since rates are at historical lows). I would not want to be in a posit...

jdilla1107 wrote:These stats are silly. People roll over their balances. My 401k balance at fidelity is 18k. My net worth is seven figures.

Yep. Its garbage in and garbage out. No way to account for IRAs, annuities, etc.

Back in '06 or '07 I had the timing belt changed for a '94 Acura Integra. Close to $400. A couple days later I heard a weird sound on my way home after work. After hearing the weird sound for 2 miles the car lost power. The new timing belt snapped. Fortunately the shop was honest and said they made ...

Gee, I would like a 200 mph, gets 40 mpg, and sits five people comfortably, but it doesn't exist. In all seriousness, your specs pretty much rule out all but V6 as others have noted. The only other thing is to make some test drives on the 4 cylinders. It's both the combination of engine and the qual...

Curious why depreciation shouldn't matter if you're driving it into the ground. Assuming you buy a used car, you may have to replace it a few years earlier than if you had bought a brand-new one assuming roughly equal life (from brand new to full dead) but you're skipping over those years of max de...

I say the latter. I for one will not accumulate old receipts. I'm planning to make a clean break every year and self-reimburse eligible expenses shortly after the end of the year. Last year I had $300 worth of expenses on 13 receipts. I'm not going to carry these 13 receipts for 20 years only for t...