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Re: Your allocation to Emerging Market small cap ETFs?

I used to own EWX, but switched to EEMS after EWX distributed significant capital gains for several years. (I also had the chance to take a small capital loss when I switched.) EEMS has not yet distributed a capital gain, so it has been very tax-efficient. I would hold EM small-cap as 1/4 of my inte...
by grabiner
Wed Jul 23, 2014 12:14 am
 
Forum: Investing - Help with Personal Investments
Topic: Your allocation to Emerging Market small cap ETFs?
Replies: 11
Views: 1012

Re: Raft Stategy

They say if you take money out of a taxable account, or like monthly pension annuity, then that is what makes your SS to be taxed at 85%. This is a misunderstanding. If you have high enough income in retirement, some of your Social Security is taxable , but the taxable fraction is then taxed at you...
by grabiner
Wed Jul 23, 2014 12:04 am
 
Forum: Investing - Help with Personal Investments
Topic: Raft Stategy
Replies: 32
Views: 3357

Re: Do you split your VEU (into VEA+VWO) & VEA (into VGK+VPL

I hold VEA as a legacy holding from when it was Tax-Managed International and had 100% qualified dividends; at that time, 70% VEA/15% VWO/15% VSS was probably better in a taxable account than 100% VXUS. I haven't had any need to add to that fund recently; I am currently slightly underweighted in eme...
by grabiner
Tue Jul 22, 2014 11:55 pm
 
Forum: Investing - Help with Personal Investments
Topic: Do you split your VEU (into VEA+VWO) & VEA (into VGK+VPL)?
Replies: 12
Views: 687

Re: CreditKarma says

Not sure why everyone is telling you what they have. That's really up to you to determine. The specific number doesn't really matter aside from what you need/want and can reasonably manage. ... In any case, take CK with a grain of salt. I take just about everything with a grain of salt. However, Cr...
by grabiner
Tue Jul 22, 2014 9:05 pm
 
Forum: Personal Finance (Not Investing)
Topic: Hw many credit cards to own?
Replies: 64
Views: 3370

Re: Exceptionally high marginal rates on students

Also, all of these states have beaches, so another mitigation option is working less. This makes particular sense when your marginal rate including payroll taxes exceeds 100%. The surfin' safari income ranges, in which you will make more money at the beach than in the office, are: MD: $10,000 - $10...
by grabiner
Tue Jul 22, 2014 8:48 pm
 
Forum: Personal Finance (Not Investing)
Topic: Exceptionally high marginal rates on MD, VA students
Replies: 30
Views: 2707

Re: Do you "Tax Adjust" your Asset Allocation (Pre vs Roth,

Asset allocation is not about an income stream it is about the risk in your portfolio. ... Adjusting your AA for taxes is just acknowledging that some of the balance in your accounts is accrued taxes that belong not to you but to the guv. I see a contradiction in the above. I agree AA is all about ...
by grabiner
Tue Jul 22, 2014 12:32 am
 
Forum: Investing - Theory, News & General
Topic: Do you "Tax Adjust" your Asset Allocation (Pre vs Roth, etc)
Replies: 76
Views: 3170

Re: Do you "Tax Adjust" your Asset Allocation (Pre vs Roth,

Your Roth IRA is set up as follows: $50,000 in Total Stock Market. Your 401k is set up as follows: $25,000 in Total Stock Market. $75,000 in Total Bond. You estimate your post-retirement marginal tax bracket will be 25%. What is your asset allocation right now, for rebalancing purposes? The reason ...
by grabiner
Tue Jul 22, 2014 12:23 am
 
Forum: Investing - Theory, News & General
Topic: Do you "Tax Adjust" your Asset Allocation (Pre vs Roth, etc)
Replies: 76
Views: 3170

Russell indexes have dropped BDCs; no real expense change

Vanguard fund expense changes reported in July The only funds which have changed are the Russell 2000 (VTWO) and Russell 2000 Value (VTWV) ETFs. I checked the revised prospectus, and the change is entirely in "Acquired Fund Fees and Expenses", which have disappeared; the real expenses of ...
by grabiner
Tue Jul 22, 2014 12:14 am
 
Forum: Investing - Theory, News & General
Topic: Russell indexes have dropped BDCs; no real expense change
Replies: 0
Views: 261

Re: CreditKarma says

CreditKarma says the ideal number is 20. Crazy, I know. They lower your score for fewer than 20. This isn't actually what Credit Karma's grades mean. CK simplifies each of the main factors in credit scoring to a single number, and assigns a grade to that number, but the score system is more complic...
by grabiner
Mon Jul 21, 2014 11:39 pm
 
Forum: Personal Finance (Not Investing)
Topic: Hw many credit cards to own?
Replies: 64
Views: 3370

Re: POLL: Do you have a dedicated REIT allocation?

What is the overall cost of taxes for the S&P 500 as an example? Surely it has to work out to a couple of percentage points of lost gains. With current tax laws, an index fund loses about 0.3% per year to a 15% tax on a 2% qualified dividends, and likely about 10% of your gains when you sell; f...
by grabiner
Mon Jul 21, 2014 11:30 pm
 
Forum: Investing - Theory, News & General
Topic: POLL: Do you have a dedicated REIT allocation?
Replies: 123
Views: 6858

Re: Poll: Has your AA changed in the last 18 months

<snip> However, this is 100% net stock; I could have paid cash for the condo and put all my investments in stock, but instead I borrowed (on a mortgage) and lent (bonds in my retirement plan) equal dollar amounts. I'm a little surprised that you've became more aggressive, even if only slightly. Not...
by grabiner
Mon Jul 21, 2014 11:24 pm
 
Forum: Investing - Theory, News & General
Topic: Poll: Has your AA changed in the last 18 months
Replies: 49
Views: 2324

Re: Should I use margin to buy a balanced fund?

(Re-posted from a question I asked in a similar thread that had been dormant for 2 months: Should I use my margin to buy bonds? ) Question: What does the Bogleheads community think of buying a balanced fund on margin while early in the accumulation phase? It's really a version of the same issue. If...
by grabiner
Sun Jul 20, 2014 1:05 pm
 
Forum: Investing - Theory, News & General
Topic: Should I use margin to buy a balanced fund?
Replies: 89
Views: 4805

Re: Social Security Taxes?

That led me to do some research and the taxes on SS did surprise me. On the SS site it indicated that if married and you have income over $44,000 a year, up to 85% of your SS benefit will be taxed. Looks like it is a good thing I am not depending on SS! "Will be taxed" does not mean you l...
by grabiner
Sun Jul 20, 2014 12:56 pm
 
Forum: Personal Finance (Not Investing)
Topic: Social Security Taxes?
Replies: 26
Views: 2252

Re: Poll: Has your AA changed in the last 18 months

I became slightly more aggressive because I acquired a non-financial asset, a condo which will provide me with a place to live. I was 90% stock before buying the condo (not counting the money intended for the condo down payment), and am now 100% stock. However, this is 100% net stock; I could have p...
by grabiner
Sun Jul 20, 2014 12:51 pm
 
Forum: Investing - Theory, News & General
Topic: Poll: Has your AA changed in the last 18 months
Replies: 49
Views: 2324

Re: beginner investor

Thanks for the responses. I am currently at an internship that will turn into a full time offer, so I will have a job after I graduate. I think I am going to pay off the 4k unsubsidized loan next month, and then open a Vanguard Roth IRA with $1000. The rest will be put towards an emergency fund and...
by grabiner
Sun Jul 20, 2014 12:43 pm
 
Forum: Investing - Help with Personal Investments
Topic: beginner investor
Replies: 5
Views: 438

Re: Best CC for (new) purchases

My attempts to rotate through multiple cards for different bonuses backfired when I mistakenly missed a few payment deadlines, so the late penalty negated all the cash back I saved. The solution to this is to set up automatic payments on your cards from your checking account. You can set an automat...
by grabiner
Sun Jul 20, 2014 12:36 pm
 
Forum: Personal Finance (Not Investing)
Topic: Best CC for (new) purchases
Replies: 43
Views: 3076

Re: 15 year mortgage or a 30 year & Invest?

In addition to the different variables discussed, factor in inflation and the 30 year starts to look better? For the interest deduction vs taxes calculation, if one is not maxing out retirement vehicles, then the extra cash could go there removing the tax consideration. I didn't consider this. Woul...
by grabiner
Sun Jul 20, 2014 1:01 am
 
Forum: Personal Finance (Not Investing)
Topic: 15 year mortgage or a 30 year & Invest?
Replies: 34
Views: 3494

Re: Invest in pricey 403(b),or skip it and go taxable?

I have a friend who is a schoolteacher in CA (Santa Ana Unified School District), and he has one of those awful 403(b) plans. There are three layers of fees--those of the underlying funds (of course), those that each vendor charges (0 bp to at least 33 bp, depending on the fund), and another 100 bp...
by grabiner
Sun Jul 20, 2014 12:55 am
 
Forum: Investing - Help with Personal Investments
Topic: Invest in pricey 403(b),or skip it and go taxable?
Replies: 16
Views: 1043

Re: AA for a spoiled young buck

Note that your state tax rate is actually 7.25%-7.95% including local tax, depending on which county you live in. This increases your tax rate on capital gains, but also on dividends. 1. The American Century Growth, Janus Worldwide, and Vanguard Value Index were set up as gift trust funds for me whe...
by grabiner
Sun Jul 20, 2014 12:48 am
 
Forum: Investing - Help with Personal Investments
Topic: AA for a spoiled young buck
Replies: 10
Views: 1816

Re: Need advice on a bond fund for taxable account

Since you will be funding the taxable account over the next 10 years for money used in semi-retirement, you should max out on I-Bonds each year. The I-Bonds are free of state tax, and federal tax is deferred until you cash the bonds in; by then, you will be in a lower tax bracket as well as having t...
by grabiner
Sun Jul 20, 2014 12:34 am
 
Forum: Investing - Help with Personal Investments
Topic: Need advice on a bond fund for taxable account
Replies: 9
Views: 729

Re: Pre tax vs. after tax retirement investing

Not the OP, but perhaps some very low-cost basis stock in Brown-Forman? :D If you liquidate low-cost basis property (stock or real), it could increase your tax burden, thought that would be a great problem to have. But this won't increase your tax bracket, because it is all capital gains taxed at 2...
by grabiner
Fri Jul 18, 2014 7:00 pm
 
Forum: Investing - Help with Personal Investments
Topic: Pre tax vs. after tax retirement investing
Replies: 15
Views: 1519

Re: 15 year mortgage or a 30 year & Invest?

The bank is presumably indifferent between the two; it charges a higher rate on a 30-year mortgage than a 15-year mortgage as compensation for the additional interest-rate risk. Is this actually true? Does the bank really not find either option to be a better position for them? I would expect it to...
by grabiner
Thu Jul 17, 2014 11:52 pm
 
Forum: Personal Finance (Not Investing)
Topic: 15 year mortgage or a 30 year & Invest?
Replies: 34
Views: 3494

Re: Is this realtor lying to me?

However, most states (including Texas) gives the buyers an out if the appraisal does not meet the contract price. We have seen that used somewhat in our subdivision this year (I don't know why - maybe people feel that they are overpaying - but my thought is if you are making an offer over list - yo...
by grabiner
Thu Jul 17, 2014 9:28 pm
 
Forum: Personal Finance (Not Investing)
Topic: Is this realtor lying to me?
Replies: 27
Views: 3318

Re: Exceptionally high marginal rates on students

3. California – California gross income over $15,702 Not an issue. CA gives personal exemptions as non-refundable credits instead of reducing income. CA Individual Filing Requirements says that you must file if you are single with no dependents and your CA adjusted gross income exceeds $12,562. Thi...
by grabiner
Thu Jul 17, 2014 8:56 pm
 
Forum: Personal Finance (Not Investing)
Topic: Exceptionally high marginal rates on MD, VA students
Replies: 30
Views: 2707

Re: 15 year mortgage or a 30 year & Invest?

I would normally prefer 30 years and invest the difference if you can't max out your tax-advantaged accounts with the 15-year mortgage, and will be more than able to max them out with no mortgage. The bank is presumably indifferent between the two; it charges a higher rate on a 30-year mortgage than...
by grabiner
Thu Jul 17, 2014 8:26 pm
 
Forum: Personal Finance (Not Investing)
Topic: 15 year mortgage or a 30 year & Invest?
Replies: 34
Views: 3494

Re: Man turned $2 m into 187 million and gave it away

Also see Morningstar's growth of 10k charts for Wellington Fund, VWELX, and Massachusetts Investors Trust, MITTX, two mutual funds you actually could have bought sixty years ago. $2m in Wellington iwould have grown to $473M from 12/31/53-12/31/13... But don't forget to adjust for taxes. There weren...
by grabiner
Thu Jul 17, 2014 12:17 am
 
Forum: Investing - Theory, News & General
Topic: Man turned $2 m into 187 million and gave it away
Replies: 7
Views: 2583

Re: Very high interest rate in other countries? How come?

Is there some kind of equation or calculation, to factor in the currency, inflation, etc to see what 2% US equals in these high rate currencies, or vice versa? Adjust by the (expected) change in exchange rates. If $1 USD equals 100 PKR this year, and is expected to be 108 PKR next year, then PKR ra...
by grabiner
Thu Jul 17, 2014 12:07 am
 
Forum: Investing - Theory, News & General
Topic: Very high interest rate in other countries? How come?
Replies: 44
Views: 3171

Re: POLL: Do you have a dedicated REIT allocation?

I have kept 10% of my portfolio in real estate funds for years (previously TIAA-CREF before I rolled this over to a Vanguard IRA, now Vanguard REIT and Global Real Estate Index). I didn't change this when I bought my home, because I don't view the home as an investment; if the value of my home chang...
by grabiner
Wed Jul 16, 2014 11:59 pm
 
Forum: Investing - Theory, News & General
Topic: POLL: Do you have a dedicated REIT allocation?
Replies: 123
Views: 6858

Re: Pre tax vs. after tax retirement investing

I have been investing for some time now in my company sponsored 403b retirement plan on a tax-deferred scenario up to the max of $17,500 every year with a 50% match of up to 6%. They also have a after-tax investment option, similar to a roth 403b, where initial investment is taxed and withdrawals w...
by grabiner
Wed Jul 16, 2014 11:56 pm
 
Forum: Investing - Help with Personal Investments
Topic: Pre tax vs. after tax retirement investing
Replies: 15
Views: 1519

Re: Insurance Settlement and Roth

Thanks for the replies. I thought we were good to do it with the Roth but it's confusing with they talk about joint income and individual accounts at the same time. You can contribute to your IRA based on your own income, or your spouse's income. If only one of you work, but that one earns more tha...
by grabiner
Wed Jul 16, 2014 11:45 pm
 
Forum: Investing - Help with Personal Investments
Topic: Insurance Settlement and Roth
Replies: 4
Views: 417

Re: Overseas Residents And the Affordable Health Care Act

But if I had lets say $5000 of income in Cambodia and claimed the FEIE could I then contribute the $5000 to a Roth and claim the Savers Credit? http://www.irs.gov/uac/Newsroom/Plan-Now-to-Get-Full-Benefit-of-Saver%E2%80%99s-Credit%3B-Tax-Credit-Helps-Low-and-Moderate-Income-Workers-Save-for-Retirem...
by grabiner
Wed Jul 16, 2014 1:25 am
 
Forum: Personal Finance (Not Investing)
Topic: Overseas Residents And the Affordable Health Care Act
Replies: 10
Views: 1070

Re: Debt Payoff Plan - Student/Car Loans

Looking on advice in effort to pay off the following debt: Student Loans: $46K @ 5.30% Car Loan: $12K @ 4.00% ...Ideally, I'd want to pay the car loan off first within the first 6 months or year and then the student loans over 3-5 years but I don't want it to come at a sacrifice of enjoying life. I...
by grabiner
Tue Jul 15, 2014 9:44 pm
 
Forum: Personal Finance (Not Investing)
Topic: Debt Payoff Plan - Student/Car Loans
Replies: 9
Views: 1098

Re: Using Emergency Fund to Pay off Auto Loan

If you do pay off the loan, you can keep your emergency fund in the Roth IRA until it gets replenished, since you can withdraw Roth IRA contributions without penalty. To do this, move the necessary amount in your Roth IRA to something low-risk such as a short-term bond fund, and don't count this amo...
by grabiner
Tue Jul 15, 2014 9:41 pm
 
Forum: Personal Finance (Not Investing)
Topic: Using Emergency Fund to Pay off Auto Loan
Replies: 20
Views: 1558

Re: How do negative stock PEs affect index avg PE?

Ok so negative earnings effect on the index is that it actually raises the P/E ratio. The negative earnings for some companies are being subtracted from the total earnings of the index. So the price(market cap) remains constant the and earnings are lower giving a larger P/E ratio. And this makes se...
by grabiner
Mon Jul 14, 2014 11:44 pm
 
Forum: Investing - Theory, News & General
Topic: How do negative stock PEs affect index avg PE?
Replies: 8
Views: 883

Re: But why not 100% stock index fund?

I'm new to this forum, though I have been reading posts for a while. A member further down posted for advice regarding 100% stock allocation in his retirement accounts, and most of the replies advise against it. However, almost all the negative votes have included some type of "panic" fac...
by grabiner
Mon Jul 14, 2014 11:42 pm
 
Forum: Investing - Theory, News & General
Topic: But why not 100% stock index fund?
Replies: 76
Views: 6962

Re: Tax Gain Harvesting Strategy Questions

You don't state if you're doing this, but it'd be wise to be maxing out your retirement accounts. Preferably a Roth if it's available to you. You can do this by tax gain harvesting funds to live off and then increasing your retirement contributions. This is worth doing even if you pay taxes on the ...
by grabiner
Sun Jul 13, 2014 7:55 pm
 
Forum: Personal Finance (Not Investing)
Topic: Tax Gain Harvesting Strategy Questions
Replies: 13
Views: 687

Re: Tax Gain Harvesting Strategy Questions

It is better to sell the shares with the least gains, so that you have more shares with the new basis; this will reduce your capital gains on subsequent sales, and provide more opportunities for tax loss harvesting. Example: You have 1000 shares purchased for $10, and 2000 shares purchased for $20....
by grabiner
Sun Jul 13, 2014 7:53 pm
 
Forum: Personal Finance (Not Investing)
Topic: Tax Gain Harvesting Strategy Questions
Replies: 13
Views: 687

Re: Thoughts on 100% stock allocation for 33 year old

As I have said previously talking about portfolio asset allocation is a total complete waste of time unless you analyze your entire financial structure. What are your non portfolio assets and liabilities? E.g. Virtually everyone in T SP ALSO has a FERS DB pension. Normally, I would agree with this....
by grabiner
Sun Jul 13, 2014 7:18 pm
 
Forum: Investing - Help with Personal Investments
Topic: Thoughts on 100% stock allocation for 33 year old
Replies: 85
Views: 6128

Re: Tax Gain Harvesting Strategy Questions

2) Is there a strategy about which shares I should sell when tax gain harvesting? For example, should I sell fewer shares that have the largest amount of unrealized gains or a greater number of shares that have less unrealized gains? It is better to sell the shares with the least gains, so that you...
by grabiner
Sun Jul 13, 2014 6:51 pm
 
Forum: Personal Finance (Not Investing)
Topic: Tax Gain Harvesting Strategy Questions
Replies: 13
Views: 687

Re: Debt payoff plan opinions

My employer match is 10% of everything I contribute, so the most I will ever have matched is 1750. Independent of whether you pay down the car loan early or not, you should max out the 401(k) in preference to contributing to a Roth IRA, because of this 10% match. And you should probably prefer a tr...
by grabiner
Sun Jul 13, 2014 6:39 pm
 
Forum: Personal Finance (Not Investing)
Topic: Debt payoff plan opinions
Replies: 53
Views: 3080

Re: Vanguard recommending international bond....

“The Fund may invest in derivatives. In general, investments in derivatives may involve risks different from, and possibly greater than, those of investments directly in the underlying securities, assets, or market indexes.” Derivatives? Derivatives in an index fund? What? That doesn’t sound very B...
by grabiner
Sun Jul 13, 2014 6:29 pm
 
Forum: Investing - Theory, News & General
Topic: Vanguard recommending international bond....
Replies: 44
Views: 5927

Re: Capital gains if a country joins a developed markets ind

With the development of ETFs, Vanguard's index funds have capital losses to offset most capital gains from index changes. Emerging Markets Index did not distribute a capital gain when Vanguard changed index providers and South Korea moved to the developed index. I would have expected a capital gain ...
by grabiner
Sun Jul 13, 2014 6:20 pm
 
Forum: Investing - Theory, News & General
Topic: Capital gains if a country joins a developed markets index?
Replies: 2
Views: 522

Re: Does anyone expect tilts to *under*perform?

So, for example, is anyone tilting to large-cap growth? That would be evidence that someone is taking the opposite side of the small-value bet. I think all someone has to do to answer your question is tell us that they are doing something like this. Even if we look at index funds, the Vanguard [Lar...
by grabiner
Sun Jul 13, 2014 6:14 pm
 
Forum: Investing - Theory, News & General
Topic: Does anyone expect tilts to *under*perform?
Replies: 84
Views: 5269

Re: Is There Need for Plan 'C' (Inverse of Plan B)?

Is there such a thing as Plan 'C' when equities go in to 'bubble' territory? An example of 'bubble' is S&P going to 2500 range in 2015. It's not a specific plan, but this is the time to rebalance. If you have $60K in stock and $40K in bonds, and the stock market doubles in value, you will be 75...
by grabiner
Sun Jul 13, 2014 5:57 pm
 
Forum: Investing - Theory, News & General
Topic: Is There Need for Plan 'C' (Inverse of Plan B)?
Replies: 12
Views: 1051

Re: Thoughts on 100% stock allocation for 33 year old

I was seeking a second opinion on being 100% invested in stocks at age 33. So you were 26 years old back in 2008. How were you invested then? Can you remember that far back? In 2008, I had a Roth IRA with small and mid cap stocks. Maybe $30,000 or so. When the market tanked in October, I'm sure I l...
by grabiner
Sun Jul 13, 2014 5:52 pm
 
Forum: Investing - Help with Personal Investments
Topic: Thoughts on 100% stock allocation for 33 year old
Replies: 85
Views: 6128

Re: Fully subsidized HDHP with HSA vs Traditional PPO

Thanks for the prompt reply. My understanding is max annual deductible for family HDHP is $12,700. Individual coverage is $6350. This is a family plan and I believe I am subject to higher max. Am I missing something here? Sorry if that wasn't clear earlier. You are correct here; I checked wit the I...
by grabiner
Sat Jul 12, 2014 10:07 pm
 
Forum: Personal Finance (Not Investing)
Topic: Fully subsidized HDHP with HSA vs Traditional PPO
Replies: 3
Views: 467

Re: Fully subsidized HDHP with HSA vs Traditional PPO

Recheck your numbers; $7000 is too high a deductible for an HDHP. The tax benefit of the HDHP/HSA is that the HSA is funded tax-free (if the employer funds it) or tax-deductible (if you receive salary and fund it yourself). Thus the day-one cost of the HDHP is what you pay for insurance, minus the e...
by grabiner
Sat Jul 12, 2014 9:09 pm
 
Forum: Personal Finance (Not Investing)
Topic: Fully subsidized HDHP with HSA vs Traditional PPO
Replies: 3
Views: 467

Re: NPR: Net Price Of Private Non-Profit College

I imagine college seats are perishable like airline seats or hotel rooms; It's better to take a small loss on a filled seat than no revenue from an empty seat. And like airlines, colleges overbook (while they won't turn away admitted students, they have some room to overcrowd dorms and hire additio...
by grabiner
Sat Jul 12, 2014 7:35 pm
 
Forum: Personal Finance (Not Investing)
Topic: NPR: Net Price Of Private Non-Profit College
Replies: 36
Views: 3180

Re: Contribute and Convert to Roth?

Roth conversions also do not affect the limit for being able to contribute directly to a Roth; if your non-conversion income is under the limit, you can convert as much as you want and still contribute to the Roth. (If your non-conversion income is over the contribution limit, and you are converting...
by grabiner
Sat Jul 12, 2014 7:24 pm
 
Forum: Personal Finance (Not Investing)
Topic: Contribute and Convert to Roth?
Replies: 2
Views: 506

Re: Hardship Withdrawal From 401K/Profit Sharing

Yes, the 6 month period of ineligibility is common and standard in most plans. Usually following any type of loan or hardship withdrawal. Not necessarily following a loan, which makes it better than a hardship withdrawal if allowed. However, if you take a loan, you must repay the loan, so you will ...
by grabiner
Sat Jul 12, 2014 4:05 pm
 
Forum: Investing - Theory, News & General
Topic: Hardship Withdrawal From 401K/Profit Sharing
Replies: 12
Views: 1603
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