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Re: Another bond fund question do I need short term in my 40

We carried some short term bonds in a 401k because our plan exempted it from frequent trading or other forms of freeze and we had all the basic indexes also available. It made re balancing more convenient by localizing it instead of messing around across IRA's, taxables, etc. So that's something. Bu...
by digit8
Wed Nov 19, 2014 4:59 pm
 
Forum: Investing - Help with Personal Investments
Topic: Another bond fund question do I need short term in my 401k?
Replies: 7
Views: 469

Re: How To Invest Your Emergency Fund?

Of course I know that a bank needs to be FDIC insured. NCUA insurance through a credit union will give you the same protection (and, I'd argue, better service if not always a better rate). I go with 6 months in high interest savings, plus depositing all my coins through a handy-dandy machine at the...
by digit8
Sun Nov 16, 2014 4:50 pm
 
Forum: Investing - Help with Personal Investments
Topic: How To Invest Your Emergency Fund?
Replies: 54
Views: 6487

Re: Do IBonds make sense living in a high inflation area

I disagree. While they're not very attractive compared to past I Bond rates, they are, nevertheless, better than just about any other risk-free short-term option available. My thinking is, in the short term, Ibonds are not earning a significant amount more than generally available risk free NCUA or...
by digit8
Sun Nov 09, 2014 10:36 am
 
Forum: Investing - Theory, News & General
Topic: Do IBonds make sense living in a high inflation area
Replies: 30
Views: 2767

Re: Do IBonds make sense living in a high inflation area

There are a lot of things to consider, and I'd put location way down on the list. Right now, my chief concern would be time frame. There is virtually no upside to buying I Bonds you expect to redeem in the next few years.
by digit8
Sat Nov 08, 2014 4:49 pm
 
Forum: Investing - Theory, News & General
Topic: Do IBonds make sense living in a high inflation area
Replies: 30
Views: 2767

Re: How much to save for retirement?

Meh. I've pretty much lost faith in retirement calculators. Finally settled for the ultra-simple Ibbotson version (free versions on Morningstar, CNN, and others). I just plug in half of my actual savings and figure if I'm saving as much or more than what it comes back with, I'm happy.
by digit8
Sat Nov 08, 2014 11:28 am
 
Forum: Investing - Theory, News & General
Topic: How much to save for retirement?
Replies: 9
Views: 2588

Re: Emergency Fund Questions

I try to keep every form of income that is largely beyond my control, from severance pay for the emergency fund to SS for retirement, out of my mind and calculations. I hope it will all be there, even have some degree of confidence- but the fact is, there are a myriad of ways it could all vaporize a...
by digit8
Fri Oct 24, 2014 10:35 pm
 
Forum: Investing - Help with Personal Investments
Topic: Emergency Fund Questions
Replies: 14
Views: 2272

Re: Total world stock index

Total World is great for a very specific niche: those not hands-on enough to want to deal with periodic re balancing of Total Stock and Total International, yet too hands on to be satisfied with a Target Retirement or LifeStrategy fund.
by digit8
Fri Oct 03, 2014 9:14 pm
 
Forum: Investing - Help with Personal Investments
Topic: Total world stock index
Replies: 19
Views: 2539

Re: Best place to park my emergency funds

If you're keeping a dedicated, pure emergency fund- "safe" money only, I'd say the first step is to sit down and do the math of where you have it vs. where you're thinking of moving it. Odds are, you will not see much difference. IBonds are always a reasonable choice, and right now they ha...
by digit8
Fri Oct 03, 2014 10:03 am
 
Forum: Investing - Help with Personal Investments
Topic: Best place to park my emergency funds
Replies: 16
Views: 1946

Re: Could one theoretically be 100% stocks your whole life?

Investing has three basic variables- how much you put in, how much you take out, and what your investment returns. For a pure equity portfolio, your returns will vary more then most. You would need to compensate by either putting in more, or taking out less during low-performing periods. That's the ...
by digit8
Tue Sep 23, 2014 9:04 am
 
Forum: Investing - Theory, News & General
Topic: Could one theoretically be 100% stocks your whole life?
Replies: 43
Views: 2816

Re: Rainy day fund

bungalow10 wrote:ibonds. Currently 1.93%.



+1. Spread out to mitigate the one year holding period, it's tough to beat the equivalent of a fully insured bank account with (generally) higher returns and better tax treatment when you want to set aside some "whatever" money.
by digit8
Mon Sep 22, 2014 12:31 pm
 
Forum: Investing - Help with Personal Investments
Topic: Rainy day fund
Replies: 6
Views: 667

Re: Risks to putting most investments at Vanguard

Intellectually I consider the risks of being 100% Vanguard to be virtually nil. I've yet to see a comprehensive, convincing argument otherwise. Emotionally, I could care less. Going all in would make me far more tense than is worth it, and I'd rather spread a little elsewhere and be comfortable then...
by digit8
Sun Sep 21, 2014 10:34 am
 
Forum: Investing - Help with Personal Investments
Topic: Risks to putting most investments at Vanguard
Replies: 18
Views: 1155

Re: I Bonds - Now or November

I remain a fan of small monthly purchases vs. trying to "market time". If you look at the history of rate changes, you'll see with a very few exceptions (the initial drop to 0% during the Crash, for example) there is very little reward in being right and very little punishment for being wr...
by digit8
Sat Sep 20, 2014 11:03 am
 
Forum: Investing - Theory, News & General
Topic: I Bonds - Now or November
Replies: 8
Views: 1640

Re: Do you consider your emergency fund part of your portfol

Yes.
I used to dither over this one, but then I put the question in reverse: is any asset I have not[u][/u] a part of my emergency fund, given a big enough emergency? Who refuses food, shelter, and medical care because, while they have the money, it's not allocated correctly for that purpose?
by digit8
Sat Sep 06, 2014 11:22 am
 
Forum: Investing - Theory, News & General
Topic: Do you consider your emergency fund part of your portfolio?
Replies: 50
Views: 3122

Re: I-bonds: Automatic Investments

I do irregular, small deposits. IBonds are basically an extension of my emergency fund with an MMSA. My credit union has one of those change machines that let me deposit direct to it, so I fill up a jar, take it in, and then move that amount to an Ibond. Since I've gone to the practice of cash inste...
by digit8
Sat Sep 06, 2014 11:08 am
 
Forum: Investing - Help with Personal Investments
Topic: I-bonds: Automatic Investments
Replies: 14
Views: 1869

Re: cash reserves

This is essentially what you just said..."I know market timing is a fools game, but do you think I should time the market?" It reminds me of John Oliver, in a different context, commenting on the wonder of Americans tendency towards simultaneous cynicism and optimism: "Yes, this game...
by digit8
Sun Aug 10, 2014 6:49 pm
 
Forum: Investing - Help with Personal Investments
Topic: cash reserves
Replies: 19
Views: 1875

Re: cash reserves

I've a friend who went for what he had the admirable self awareness to call a "Do Something" fund, tucking a tiny portion of his portfolio into a money market fund and occasionally transferring a tiny portion of that into whatever, depending on the latest news. It never makes much differen...
by digit8
Sun Aug 10, 2014 6:43 pm
 
Forum: Investing - Help with Personal Investments
Topic: cash reserves
Replies: 19
Views: 1875

Re: Need for International Investing ?

This is a question that frequently gets tossed around on the boards, often with the implication of a false zero sum choice. After all, I don't think anyone here will argue that US stocks (or more accurately, US based stocks) will fail[i] [/i] over the long term, it's just that many make a good case ...
by digit8
Sat Aug 09, 2014 8:34 pm
 
Forum: Investing - Help with Personal Investments
Topic: Need for International Investing ?
Replies: 56
Views: 3163

Re: Kiplinger: Why You Should Avoid Most Bond Index Funds

The older I get and the more I study investing, the less detailed my own plans become. I've got TBM for my 401 plan. Might pick up some TIPS in my Roth when I'm fully happy with my equity allocation. Probably get some short-term index as I get closer to retirement. Boom, done and I'm out to catch a ...
by digit8
Sat Jul 12, 2014 7:47 am
 
Forum: Investing - Theory, News & General
Topic: Kiplinger: Why You Should Avoid Most Bond Index Funds
Replies: 32
Views: 6863

Re: Invest in Roth IRA or Pay Down Rental Mortgage?

I look at your situation and I break it down in to "couple, early 30's, nearly $200k income and clearly very driven financially". I say, keep plugging on the Roth. It's a pretty good bet on the face of it that your earnings, the tax rate, or both will be up enough in 30 years to make it wo...
by digit8
Sun Jun 22, 2014 6:03 pm
 
Forum: Investing - Help with Personal Investments
Topic: Invest in Roth IRA or Pay Down Rental Mortgage?
Replies: 11
Views: 825

Re: Should one ever do a cash-out refi to invest?

There is a big difference, in my mind, between rolling the dice and playing Russian Roulette. Imagine 2008 Part 2 (Electric Boogaloo) hits. You are now underwater on your mortgage, the investments you put the cash out to have tanked, and you want to sell the home to take a new job. Have you got an o...
by digit8
Sun Jun 22, 2014 5:50 pm
 
Forum: Investing - Help with Personal Investments
Topic: Should one ever do a cash-out refi to invest?
Replies: 38
Views: 4181

Re: Tax Exempt Bond Fund as Emergency Fund?

Plus one on the tiered concept, though I go NCUA savings->Ibonds->taxable equity funds. I've thought about adding in a bond fund,but for some reason I always focus on the negatives- less safe then the savings, less return then then equity.
by digit8
Sat Jun 21, 2014 10:46 am
 
Forum: Investing - Help with Personal Investments
Topic: Tax Exempt Bond Fund as Emergency Fund?
Replies: 8
Views: 712

Planning for unintentional retirement?

Looking for input as to whether this has some logic to it or is just fear taking over. Rough numbers, along with a 1 year emergency fund I'm putting over 20% of annual income to my 401k, also maxing out a Roth IRA and have been for my working life. As I round the corner to 40, however, having enough...
by digit8
Fri Dec 13, 2013 11:43 am
 
Forum: Personal Finance (Not Investing)
Topic: Planning for unintentional retirement?
Replies: 12
Views: 1108

Re: Emergency fund allocation

If you set aside money for an emergency fund, why would you invest in things that will, on occasion, lose a lot of value? If your emergency fund is cut in half, it is not really much of an emergency fund, is it? That is why cash, money market, short term bonds, CDs, etc. are generally suggested. I ...
by digit8
Sun Dec 08, 2013 1:16 pm
 
Forum: Investing - Help with Personal Investments
Topic: Emergency fund allocation
Replies: 13
Views: 990

Re: Emergency fund allocation

If you're hit hard enough, long enough, any asset is part of your emergency fund. I would casually define my emergency fund as a years expenses in an MMSA, and soon some ibonds. But I've got a decent sized taxable index stock fund as well, and the fungible nature of money has let me call it anything...
by digit8
Sun Dec 08, 2013 11:51 am
 
Forum: Investing - Help with Personal Investments
Topic: Emergency fund allocation
Replies: 13
Views: 990

Re: Scott Burns shows that costs matter

I read a book on the 1900's tycoons(or robber barons, as your viewpoint chooses), and the only piece that has stuck with me, thanks to mutual funds, was Dale Carnegie harping on cost control for his factories. To paraphrase- costs are the only thing you know up front, and the only control you have.
by digit8
Sun Nov 24, 2013 7:54 pm
 
Forum: Investing - Theory, News & General
Topic: Scott Burns shows that costs matter
Replies: 7
Views: 1132

Re: Money Market "Safety"?

Money Markets have followed the path of a lot of other financial products: introduced as a useful, even arguably necessary product. The product succeeds. The move is made to grow this success, far beyond what it should be. Over time, careful wording became borderline lies, and what was something hel...
by digit8
Sun Nov 24, 2013 6:51 pm
 
Forum: Investing - Theory, News & General
Topic: Money Market "Safety"?
Replies: 15
Views: 2364

Re: Are you buying I bonds in 2014? And if so, for what role

I have been continuously tempted to move a portion of my emergency fund over to Ibonds for the last few years. I put it off for simple laziness and preemptive fear of additional bookkeeping, as well as a bit of paranoia about the security of my (mortgage industry) job. For me, I'd like to place them...
by digit8
Sun Nov 24, 2013 1:18 pm
 
Forum: Investing - Help with Personal Investments
Topic: Are you buying I bonds in 2014? And if so, for what role?
Replies: 46
Views: 5444

Re: Article -Almost no one can beat the market

I'd change the title- strike out the "Almost" and add "forever" to the end.
Some people beat the market. Some people do it for a very long time. But not many, and never over ones total investing lifetime.
by digit8
Sat Oct 26, 2013 7:22 pm
 
Forum: Investing - Theory, News & General
Topic: Article -Almost no one can beat the market
Replies: 11
Views: 1626

Re: I Bonds or IRA for Emergency Fund? Or something else?

If you don't mind, what do you use to hold your emergency fund? A years expenses in an MMSA, and what is currently a couple of years worth in a taxable Total Stock Market index fund. Monthly I dump some cash to the MMSA and yearly any extra there goes to the TSM. I used to have CD's rolling every t...
by digit8
Sat Oct 26, 2013 7:15 pm
 
Forum: Investing - Help with Personal Investments
Topic: I Bonds or IRA for Emergency Fund? Or something else?
Replies: 20
Views: 1487

Re: I Bonds or IRA for Emergency Fund? Or something else?

I hate, hate, HATE the whole idea of IRA's as an emergency fund. Certainly, in a big enough emergency, it's open season on any and all funds available. But looking at ones IRA as a piggybank from the start is even more hazardous in the long term then looking at ones home that way.
by digit8
Fri Oct 25, 2013 8:31 am
 
Forum: Investing - Help with Personal Investments
Topic: I Bonds or IRA for Emergency Fund? Or something else?
Replies: 20
Views: 1487

Re: Stick with a savings account?

I sat down an did the math for my own savings at one point....looking at CD's, Ibonds, the whole gamut for short term savings. And after about five hours work I realized that with some careful shifting in planning, I could make about an extra 20 bucks annually. So I cooked at home instead of going o...
by digit8
Fri Oct 25, 2013 8:25 am
 
Forum: Investing - Help with Personal Investments
Topic: Stick with a savings account?
Replies: 30
Views: 3982

Re: Fidelity Freedom 2030

They are a rare find indeed. Only available in some employer sponsored plans, as far as I can tell. Fidelity.com doesn't let you get a look at 'em, either, as you've discovered. In Fidelity's defense, if they made a reasonable all-index fund more easily available....they would earn much less in fee...
by digit8
Mon Oct 14, 2013 11:01 am
 
Forum: Investing - Help with Personal Investments
Topic: Fidelity Freedom 2030
Replies: 14
Views: 1659

Re: Is VMMXX safe?

A money market fund should never be mistaken for a bank account, and not just on occasions of (arguably) panicky news stories. There is always a risk of loss involved. However, the risk is (relative to equity or bond funds) the risk is minimal, actively fought against by fund companies that are will...
by digit8
Sun Oct 13, 2013 2:31 pm
 
Forum: Investing - Help with Personal Investments
Topic: Is VMMXX safe?
Replies: 9
Views: 1189

Re: FID FREEDOM 2030

I bailed out of the Freedom Fund largely because the bond portion is tilted towards the junk side in a reach for yield. And I do believe that the effort involved in going all index is worth the effort. With that said, however, I think there are definitely worse choices that can be made, and that ult...
by digit8
Sun Oct 13, 2013 2:13 pm
 
Forum: Investing - Help with Personal Investments
Topic: Fidelity Freedom 2030
Replies: 14
Views: 1659

Re: Vanguard Prime Money Market Capital Gain

Not a big deal, but certainly a good illustration that money markets being like a bank account 97% of the time means that they are emphatically not a bank account 3% of the time....
by digit8
Wed Sep 25, 2013 10:56 pm
 
Forum: Investing - Theory, News & General
Topic: Vanguard Prime Money Market Capital Gain
Replies: 11
Views: 1960

Re: Roubini: Overweight United States. Malkiel: Don't.

Experts! Gotta love 'em. Hours, months, years spend discussing the unknown - we see that right here in Bogleheads - would be put to much better use IF spent focused on increased savings rate. Over time, a 2000% cumulative change in $0 is still $0 (not more/less). +1. One of my martial arts instruct...
by digit8
Wed Sep 25, 2013 2:27 pm
 
Forum: Investing - Theory, News & General
Topic: Roubini: Overweight United States. Malkiel: Don't.
Replies: 38
Views: 4607

Re: Six lessons You Should Have Learned

A nice article, though it can all be summed up in one sentence: "this time" is never all that different. All 6 lessons were known and easily available to anyone paying attention long before the crisis, and will maintain validity long after it has been forgotten. On a side note, though Spir...
by digit8
Wed Sep 25, 2013 2:08 pm
 
Forum: Investing - Theory, News & General
Topic: Six lessons You Should Have Learned
Replies: 12
Views: 3308

Re: short term cash

Leave it where it lies and start thinking about where to put any new extra cash, like a taxable index fund. With a year safe and sound (if boring) you've got freedom to seek a lot more extra yield. These days anything safe and liquid enough to make a reasonable emergency fund won't earn you enough t...
by digit8
Thu Sep 05, 2013 6:26 pm
 
Forum: Investing - Help with Personal Investments
Topic: short term cash
Replies: 12
Views: 1082

Re: Retirement: How do you gauge whether you are on track?

I would say, before 50, it's more about "am I putting away as much as I can", not "am I putting away enough?". Sure, look at some calculators, talk to a financial planner, get some best-guess ideas together. It's nice to have some kind of general idea. But to my mind, up until th...
by digit8
Mon Sep 02, 2013 6:24 pm
 
Forum: Investing - Theory, News & General
Topic: Retirement: How do you gauge whether you are on track?
Replies: 27
Views: 2833

Re: Safety Net Funds, why Traditional Advice is Wrong.

Meh. Once I had my basic EF in the bank, I started putting a little here and there into a taxable index fund as some extra cushion, and it is nice to see that bit earning some decent returns over time. But when disasters have hit(or even seem likely) it's always that safe, boring pile earning me doo...
by digit8
Mon Sep 02, 2013 4:52 pm
 
Forum: Investing - Theory, News & General
Topic: Safety Net Funds, why Traditional Advice is Wrong.
Replies: 17
Views: 1884

Re: Worthwhile or a waste of time?

If you're going to go, review that flyer with a microscope first for "attending this obligates you to..." etc flyspeck writing. Popping for Ruth's Chris just makes my natural tendency to say "no" to this type of stuff more emphatic-going that high end, there has got[i] [/i] to be...
by digit8
Sun Aug 18, 2013 5:44 pm
 
Forum: Personal Finance (Not Investing)
Topic: Worthwhile or a waste of time? [Advisor Solicitation]
Replies: 24
Views: 2846

Re: Eggs All in One Basket?

If things as they are work for you, there is no drop-the-mic crusher argument that says it's CLEARLY the best choice to consolidate.It's always worth thinking about the "why" of your choices, but that doesn't mean anything needs to change.
by digit8
Sun Aug 18, 2013 5:38 pm
 
Forum: Investing - Theory, News & General
Topic: Eggs All in One Basket?
Replies: 16
Views: 1968

Re: Bad idea to buy i-bond now?

So say one has $20,000 in a MM emergency savings, and wants to convert that to something with a better rate. Two options I see are a 5 year CD at 1.5% and i-bonds currently yielding 1.18%. Which would you take? Keep in mind both cases would be purchased like a ladder, in smaller increments over the...
by digit8
Fri Aug 09, 2013 6:10 pm
 
Forum: Investing - Help with Personal Investments
Topic: Bad idea to buy i-bond now?
Replies: 39
Views: 4150

Re: Move from Target to Index funds?

Honestly, if I was in your position, I'd call it a day and stick with the target fund. .94% is high but not cuckoo crazy for 401's, and at the low 6 figures in your 40's retirement is a done deal so long as you keep plugging money in faithfully. At the very least, I would wait awhile, continue to pu...
by digit8
Sat Aug 03, 2013 10:50 am
 
Forum: Investing - Help with Personal Investments
Topic: Move from Target to Index funds?
Replies: 13
Views: 3011

Re: Why international stock in the 3 fund portfolio?

I can only speak for myself: I suspect, going forward, that globalization and industrialization will only increase, and that it will matter less and less where the investments I've made technically call "home" in some dusty file somewhere. I can prove, however, that up through today some o...
by digit8
Sun Jul 28, 2013 9:53 am
 
Forum: Investing - Help with Personal Investments
Topic: Why international stock in the 3 fund portfolio?
Replies: 24
Views: 1771

Re: A Dangerous Misunderstanding about Bond Rates?

OMG!!! I read all these posts about bonds. I've read books about bonds. Just when I think I know, then I don't think I know. May be if I took a graduate level course about bonds, I'd eventually get it. :shock: I'm sticking with a 60/40 or 70/30....and going to bed. +1. Somebody has to come up with ...
by digit8
Sun Jul 21, 2013 7:40 pm
 
Forum: Investing - Theory, News & General
Topic: A Dangerous Misunderstanding about Bond Rates?
Replies: 124
Views: 11098

Re: Total Intl Lags Active

You don't specify which active international funds you are talking about, but I'll assume you're talking about the International Value and International Growth funds. Here is the 10-year results of the three: Total International (VGTSX): 8.31% International Value (VTRIX): 8.72% International Growth...
by digit8
Fri Jul 12, 2013 10:37 am
 
Forum: Investing - Theory, News & General
Topic: Total Intl Lags Active
Replies: 22
Views: 1654

Re: Where do you store your emergency fund?

I'm one of those folks who doesn't have an emergency fund per se even though I am still working. I try to keep all my cash invested in equities and bond funds. I might have about 2 to 4 weeks worth of expenses in a checking account. I try to keep at least 30 years of expenses in equities, just in c...
by digit8
Sun Jul 07, 2013 5:41 pm
 
Forum: Investing - Help with Personal Investments
Topic: Where do you store your emergency fund?
Replies: 33
Views: 2461

Re: Instead of a CD Ladder

CD's are part of my emergency fund, so I've always gone with the 3 month-1 year ladder option. If you've got one just reaching for extra yield, no CD option is going to be all that attractive. If I had an "extra cash" one, I'd stick to a 3 month, max. The rate difference is so miniscule ri...
by digit8
Sat Jul 06, 2013 10:46 am
 
Forum: Investing - Help with Personal Investments
Topic: Instead of a CD Ladder
Replies: 26
Views: 4638

Re: What do you wish you had learned sooner?

That actually saving for retirement is far, far more important then specifically how you do so. I frittered about two years away between realizing I needed to invest for retirement, and when I actually felt I had a good enough plan to do so. Looking back, it's clear that I could have invested in lit...
by digit8
Sun Jun 30, 2013 6:51 pm
 
Forum: Investing - Theory, News & General
Topic: What do you wish you had learned sooner?
Replies: 104
Views: 13013
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