Search found 14915 matches

by grabiner
Thu Jul 02, 2015 8:02 pm
Forum: Personal Finance (Not Investing)
Topic: Auto Loans getting out of control?
Replies: 6
Views: 771

Re: Auto Loans getting out of control?

So here's my thought. If I can get a $20,000 loan for a $10,000 car at 3%, I can use the leftover $10,000 to pay off one of my 6.55% student loans. Is this crazy? Is this even worth looking into? I don't think a lender will give you a loan at a low rate when the loan balance exceeds the value of th...
by grabiner
Thu Jul 02, 2015 7:56 pm
Forum: Personal Finance (Not Investing)
Topic: financial adviser told me not to invest too much in 401k
Replies: 34
Views: 2094

Re: financial adviser told me not to invest too much in 401k

I met with a financial adviser today and told her i was putting 20% of my paycheck into 401k. She told that was bad advice because I would be taxed at a very high percent when i'm 65. Your advisor is right, but for the wrong reason. Your goal is not to minimize taxes, but to maximize after-tax retu...
by grabiner
Thu Jul 02, 2015 7:49 pm
Forum: Personal Finance (Not Investing)
Topic: capital gains on mutual fund
Replies: 3
Views: 196

Re: capital gains on mutual fund

You will also owe state taxes. Depending on your state, you may not owe state taxes on the whole amount, as 28% of the fund is invested in Treasury bonds which are exempt from federal tax. In most states, the proportion of income earned on Treasury bonds is exempt from state tax, so if the fund has ...
by grabiner
Thu Jul 02, 2015 7:42 pm
Forum: Investing - Theory, News & General
Topic: What is the Duration of Your Bond Portfolio? And Why?
Replies: 19
Views: 1035

Re: What is the Duration of Your Bond Portfolio? And Why?

With all bond portfolios, there is an obvious tension between safety and return, especially in today's low interest rate environment. This applies only to marketable bond portfolios. The TSP G fund has the return of an intermediate-term bond fund, and zero duration, so there is no trade-off between...
by grabiner
Thu Jul 02, 2015 7:36 pm
Forum: Investing - Theory, News & General
Topic: Which Funds to Take RMD From
Replies: 12
Views: 742

Re: Which Funds to Take RMD From

If you aren't going to spend the RMD, take it from one of the stock funds, and reinvest in the same stock fund in your taxable account. Stock funds will grow nearly tax-free in your taxable account if you never need to spend them, as your heirs will inherit them with a stepped-up basis. If you are g...
by grabiner
Thu Jul 02, 2015 7:32 pm
Forum: Investing - Help with Personal Investments
Topic: VHT vs VGHCX in taxable account
Replies: 6
Views: 448

Re: VHT vs VGHCX in taxable account

But is there a huge difference in long-term tax/capital gain distributions for VHT vs VGHCX ? There should be. VHT is an index ETF; it doesn't sell stocks much, and the creation-redemption process allows it to reduce capital gains when the index changes. VGHCX is an actively managed fund, which fre...
by grabiner
Thu Jul 02, 2015 7:28 pm
Forum: Investing - Help with Personal Investments
Topic: Is increased ER worth it for Backdoor Roth?
Replies: 5
Views: 554

Re: Is increased ER worth it for Backdoor Roth?

I realize the ER difference is low. But the ER is fairly certain, the market return is not. But you aren't comparing market returns; you are comparing tax costs, which are also certain. If you invest in Total Stock Market Index in a taxable account instead of in a Roth IRA, you will lose 0.30% per ...
by grabiner
Thu Jul 02, 2015 7:13 pm
Forum: Investing - Help with Personal Investments
Topic: Bond Fund Dividends
Replies: 9
Views: 1153

Re: Bond Fund Dividends

If a fund bought a $10,000 bond yielding 6%, that bond will distribute $50 in dividends every month, regardless of what happens to interest rates. But if the fund is an intermediate-term bond fund and the bond is close enough to maturity to become short-term, the fund may sell the bond (for a capit...
by grabiner
Wed Jul 01, 2015 8:43 pm
Forum: Investing - Help with Personal Investments
Topic: O(hio)PERS vs ARP retirement plans
Replies: 2
Views: 223

Re: O(hio)PERS vs ARP retirement plans

Welcome to the forum! The main decision you have to make is whether you expect to stay at Ohio State. The defined benefit plan is excellent if you have a long career there. If you leave mid-career, you will get a small benefit at retirement age, but it will be eroded by inflation; therefore, a defin...
by grabiner
Wed Jul 01, 2015 8:08 pm
Forum: Investing - Help with Personal Investments
Topic: Intermediate Term Bond Funds Index vs. Investment-Grade
Replies: 10
Views: 1045

Re: Intermediate Term Bond Funds Index vs. Investment-Grade

Need a bond fund in taxable to put in some cash that is sitting in MMF. Intermediate term seems right. I imagine either one will be suitable. ' What is your tax bracket? If it is 28% or higher, or 25% and there is a fund for your state, you probably want a muni fund; you will probably get a higher ...
by grabiner
Wed Jul 01, 2015 8:04 pm
Forum: Investing - Help with Personal Investments
Topic: Bond Fund Dividends
Replies: 9
Views: 1153

Re: Bond Fund Dividends

As interest rates go up, the value of existing bonds goes down. Interest payments (dividends) in a bond mutual fund are paid based on the value of the bonds, so it can take a while before the increasing interest payments catch up to the decreasing value of the bonds on which the interest is calcula...
by grabiner
Wed Jul 01, 2015 7:59 pm
Forum: Investing - Help with Personal Investments
Topic: Very Low Volume - Should I Avoid These ETFs?
Replies: 12
Views: 942

Re: Very Low Volume - Should I Avoid These ETFs?

livesoft wrote:
pt32 wrote:
livesoft wrote:Low volume ETFs have a tendency to fold up and close

What would happen in that case?

The sponsor sells your shares for you and gives you the money.


And a taxable capital gain (unless you held the ETF in a tax-sheltered account such as an IRA).
by grabiner
Wed Jul 01, 2015 7:57 pm
Forum: Investing - Help with Personal Investments
Topic: Pick One of Three! Vanguard Balanced Funds
Replies: 22
Views: 2188

Re: Pick One of Three! Vanguard Balanced Funds

I prefer LS Moderate Growth for better diversification; it holds international stocks and international bonds. Wellington is a fine fund but has very little in international. But any of the three are fine. Wellington will generate some capital gains, but in your 15% tax bracket, there won't be any t...
by grabiner
Wed Jul 01, 2015 7:52 pm
Forum: Investing - Help with Personal Investments
Topic: Tax Loss Harvesting
Replies: 22
Views: 1252

Re: Tax Loss Harvesting

Let's say I get a $8,800 in short term loss. If I realize that, then switch back into a different fund. Then I have $20K in capital gains in my taxable account...where half is long term gains. Assuming a 25% fed tax bracket and 7% state bracket. How does that work? Losses offset other gains of the ...
by grabiner
Tue Jun 30, 2015 10:39 pm
Forum: Investing - Theory, News & General
Topic: Why not Vanguard tax managed mutual funds ?
Replies: 13
Views: 2005

Re: Why not Vanguard tax managed mutual funds ?

As far as Vanguard changing the fund out from under you, I would say that as an investor in VTMGX, that used to be the tax-managed int'l fund, it really didn't change much more than in descriptive name. First, the merger was not a taxable event for investors in VTMGX. Second, I don't think there we...
by grabiner
Mon Jun 29, 2015 10:07 pm
Forum: Investing - Help with Personal Investments
Topic: What happens when Admiral Shares drop below $50K?
Replies: 22
Views: 3064

Re: What happens when Admiral Shares drop below $50K?

It does happen. I sold a lot of Admiral shares to harvest a loss in 2008, and didn't put the proceeds back into the same fund; my balance at the 2009 market bottom was about 1/3 of the Admiral threshold in that fund. Vanguard sent me a note that I would be downgraded unless I got back to the Admira...
by grabiner
Mon Jun 29, 2015 9:47 pm
Forum: Investing - Theory, News & General
Topic: Why not Vanguard tax managed mutual funds ?
Replies: 13
Views: 2005

Re: Why not Vanguard tax managed mutual funds ?

Because Vanguard does NOT believe in long term investing and will change these funds over time as it sees fit - as a former long-term investor in the now dead TM International (it was changed into a regular index fund). I cannot suggest strongly enough to use ETF's in taxable accounts, so your not ...
by grabiner
Mon Jun 29, 2015 9:37 pm
Forum: Investing - Help with Personal Investments
Topic: Should I sell muni funds or Wellington
Replies: 9
Views: 1442

Re: Should I sell muni funds or Wellington

You probably don't want to hold both munis and Wellington in your taxable account. If you are in a high tax bracket, you want munis for your taxable bond holding, and you don't want a stock fund which generates taxable capital gains such as Wellington does. If you are in a 15% or lower bracket, you ...
by grabiner
Mon Jun 29, 2015 9:31 pm
Forum: Investing - Help with Personal Investments
Topic: Newbie Q: VGTSX Admiral Share return lower than Investor Share?
Replies: 4
Views: 580

Re: Newbie Q: VGTSX Admiral Share return lower than Investor Share?

The difference between share classes may be the result of rounding, because share prices are calculated to the nearest penny. If Admiral shares happen to be priced at twice as much as Investor shares, there might be a day that Investor shares go from 10.004 to 10.006, which rounds to 10.00 becoming ...
by grabiner
Mon Jun 29, 2015 9:27 pm
Forum: Investing - Help with Personal Investments
Topic: What happens when Admiral Shares drop below $50K?
Replies: 22
Views: 3064

Re: What happens when Admiral Shares drop below $50K?

I think knocking you off Admiral status for dropping below the minimum is something they reserve the right to do, but rarely if ever do. https://personal.vanguard.com/us/content/Funds/FundsVGFundsWhatAreAdmiralSharesJSP.jsp If the balance in an Admiral Shares account drops below the minimum, Vangua...
by grabiner
Mon Jun 29, 2015 9:15 pm
Forum: Personal Finance (Not Investing)
Topic: Can I transfer a mastercard account to a different card?
Replies: 11
Views: 991

Re: Can I transfer a mastercard account to a different card?

Thanks that's great to know. So is the, "Don't close your cards, it hurts your credit," line overplayed as a scare tactic to get consumers to leave credit cards open? It's just an oversimplified understanding of how age of accounts matters and is utilized by the FICO scoring models. Some ...
by grabiner
Mon Jun 29, 2015 9:07 pm
Forum: Investing - Theory, News & General
Topic: Why not Vanguard tax managed mutual funds ?
Replies: 13
Views: 2005

Re: Why not Vanguard tax managed mutual funds ?

Agreed, Vanguard index funds are very tax efficient, as I mentioned in the paragraph after the one you quoted. The tax efficiency is not because they are different share classes of the ETFs but because the size of the funds enable liquidity needs to be met generally without having to sell securitie...
by grabiner
Mon Jun 29, 2015 9:02 pm
Forum: Investing - Theory, News & General
Topic: Thoughts on Fixed-Maturity Bond Funds?
Replies: 29
Views: 2550

Re: Thoughts on Fixed-Maturity Bond Funds?

It's not an advantage to hold an old bond to maturity, otherwise buyers would be willing to pay more. This isn't only how bond pricing works, but how it has to work. I guess this is what I have some sort of mental block with. It seems paradoxical. I think what I need to do is work this out with rea...
by grabiner
Sun Jun 28, 2015 9:05 pm
Forum: Investing - Theory, News & General
Topic: fund placement
Replies: 28
Views: 1788

Re: fund placement

Ok cool. And I know I can fund for my wife. Can I put all 11000 in one account or did it have to be too separate Roth IRA IRAs are individual (this is what the I stands for), so you have to have separate accounts; the only way they can be merged is if one of you dies and leaves the account to the o...
by grabiner
Sun Jun 28, 2015 8:59 pm
Forum: Investing - Theory, News & General
Topic: Why not Vanguard tax managed mutual funds ?
Replies: 13
Views: 2005

Re: Why not Vanguard tax managed mutual funds ?

But I don't really like ETFs for the withdrawal phase in retirement (or for dollar-cost averaging). Every withdrawal is a brokered transaction, and you have to check premium or discount to NAV, check commissions, effectively pay half the bid-ask spread. Commissions may be free or acceptable today, ...
by grabiner
Sun Jun 28, 2015 8:53 am
Forum: Investing - Theory, News & General
Topic: Bogleheads are more aggressive...
Replies: 57
Views: 5969

Re: Bogleheads are more aggressive...

I would go with "smarter" and "richer". Most of the Bogleheads who post on these polls have been through bear markets, and already know how they react. I never recommend an allocation of more than 80% stock for an investor who hasn't already been through a bear market with a stoc...
by grabiner
Sun Jun 28, 2015 8:43 am
Forum: Investing - Theory, News & General
Topic: fund placement
Replies: 28
Views: 1788

Re: fund placement

And one last thing if I used the Roth and I put in 5500 and then it grows over the 5500i wouldn't pay a penalty right? It's only for what I contribute? If you put $5500 into a Roth IRA, you can withdraw that $5500 at any time with no tax or penalty. If the account grows beyond that level, you may o...
by grabiner
Sun Jun 28, 2015 8:32 am
Forum: Investing - Theory, News & General
Topic: Why not Vanguard tax managed mutual funds ?
Replies: 13
Views: 2005

Re: Why not Vanguard tax managed mutual funds ?

See Tax-managed fund comparison on the wiki. Tax-Managed Capital Appreciation is comparable to 500 Index, and 80% TM Capital Appreciation/20% TM Small-Cap is comparable to Total Stock Market Index. But with the development of ETFs, even the funds which are not explicitly tax-managed are very tax-eff...
by grabiner
Sun Jun 28, 2015 8:24 am
Forum: Investing - Help with Personal Investments
Topic: Risks of RMD Withdrawal From A Single Fund IRA
Replies: 43
Views: 2927

Re: Risks of RMD Withdrawal From A Single Fund IRA

An RMD is a non-event for the purposes of asset allocation. When you take an RMD, you move the money from one account (an IRA/401(k)/etc.) into another account (a taxable account). If you aren't spending the RMD, you can put the RMD back into the same fund, or a similar fund which is appropriate for...
by grabiner
Sun Jun 28, 2015 8:17 am
Forum: Investing - Help with Personal Investments
Topic: Where to Begin [Tax Efficient Mutual Funds for Some Inheritance]
Replies: 15
Views: 1320

Re: Tax Efficient Mutual Funds for Some Inheritance

Since you have access to the TIAA Traditional Annuity, that is probably the best place to hold your fixed income; unlike a conventional bond fund, it does not lose value when rates rise. (The ten-year withdrawal rule for RA/GRA accounts means that you are locked in to the old lower rates for a few y...
by grabiner
Sun Jun 28, 2015 8:09 am
Forum: Investing - Help with Personal Investments
Topic: No gain in 9 months of investment
Replies: 23
Views: 4311

Re: No gain in 9 months of investment

Did you count dividends in your returns? If you bought a fund for $10.00 per share, and it is currently worth $10.00 per share, you have a gain because you received dividends. If you reinvested those dividends in the same fund, you might have turned $10,000 (1000 shares worth $10) into $10,300 (1000...
by grabiner
Fri Jun 26, 2015 9:25 pm
Forum: Personal Finance (Not Investing)
Topic: Pay student loan off at 2.875%? - otherwise, 14 years to go
Replies: 52
Views: 5006

Re: Pay student loan off at 2.875%? - otherwise, 14 years to go

Wiki article link: Paying down loans versus investing Since you are considering paying off the 14-year loan all at once, that is equivalent to buying a bond portfolio with a 7-year duration. Is the interest deductible, and at what rate? If it is deductible at 25%, you can probably earn a bit more on...
by grabiner
Fri Jun 26, 2015 6:46 pm
Forum: Investing - Help with Personal Investments
Topic: Re-evaluating Managed Portfolio
Replies: 15
Views: 1874

Re: Re-evaluating Managed Portfolio

If you sell your taxable funds and increase your TSP contribution by an equal amount, you'll come out ahead in taxes. For example, if you are in a 25% tax bracket and sell $10,000 in stock with a $5000 basis, you will owe $750 tax on the capital gain, for a net gain of $9250. If you then contribute...
by grabiner
Fri Jun 26, 2015 6:39 pm
Forum: Investing - Help with Personal Investments
Topic: Advice for Tax Efficency & Asset Allocation
Replies: 4
Views: 583

Re: Advice for Tax Efficency & Asset Allocation

You are holding this money in case your parent needs the money, so this money should be allocated according to the parent's risk tolerance. However, from your point of view, it is all part of one portfolio; you aren't likely to fail to support your parent if this money runs out. Therefore, you could...
by grabiner
Thu Jun 25, 2015 9:55 pm
Forum: Investing - Theory, News & General
Topic: "Morningstar’s Active/Passive Barometer"
Replies: 1
Views: 463

Re: "Morningstar’s Active/Passive Barometer"

There are some errors in the data. For mid-cap growth, foreign large-blend, and intemediate-term bonds, the 10-year asset-weighted average of active funds outperforms all four quartiles, and the 10-year equal-weighted average underperforms all four, which are both impossible; in other categories, on...
by grabiner
Thu Jun 25, 2015 9:35 pm
Forum: Investing - Theory, News & General
Topic: Did 2008 change your investing strategy?
Replies: 58
Views: 4635

Re: Did 2008 change your investing strategy?

I changed my asset allocation after the 2000-2002 bear market. The change was to a more aggressive portfolio; I had 80% stocks in 2000, 85% in 2002, and 90% in 2004, because I now knew how I reacted to a bear market. I didn't change my asset allocation immediately after the 2007-2009 bear market, be...
by grabiner
Thu Jun 25, 2015 9:31 pm
Forum: Investing - Theory, News & General
Topic: Thoughts on Fixed-Maturity Bond Funds?
Replies: 29
Views: 2550

Re: Thoughts on Fixed-Maturity Bond Funds?

You can also simulate the fixed-maturity situation on your own, with conventional funds. Say that you have available a money-market fund, a short-term fund with a 2-year duration, an intermediate-term fund with a 5-year duration, and a long-term fund with a 10-year duration, and you have a 10-year i...
by grabiner
Thu Jun 25, 2015 9:20 pm
Forum: Investing - Help with Personal Investments
Topic: Vanguard ETF dividends?
Replies: 13
Views: 1394

Re: Vanguard ETF dividends?

Yep - I see they are out now. Sweet. Much better than the first quarter too. Maybe I am misunderstanding dividends. Why do you consider a higher dividend payout to be "sweet"? Doesn't that mean more taxes owed at the end of the year? It does mean more taxes owed, but it also means that I ...
by grabiner
Thu Jun 25, 2015 9:14 pm
Forum: Investing - Help with Personal Investments
Topic: Re-evaluating Managed Portfolio
Replies: 15
Views: 1874

Re: Re-evaluating Managed Portfolio

Edit: Yes, check to find out if you will still pay for deferred loads when selling your non -Class A funds. And then sell them anyway (unless a wait of a month will reduce the fee by 1%). You have already lost the deferred load on your B shares; it just hasn't been deducted from your account yet. I...
by grabiner
Thu Jun 25, 2015 7:57 pm
Forum: Investing - Help with Personal Investments
Topic: Advice for Tax Efficency & Asset Allocation
Replies: 4
Views: 583

Re: Advice for Tax Efficency & Asset Allocation

With only 15% stock, the only reasonable way to reduce risk is to shorten the bond duration. You might replace some of the NY Long-Term Tax-Exempt with Limited-Term Tax-Exempt; with equal amounts in long-term and short-term funds, you will pay state tax on less than half the dividend and have an int...
by grabiner
Thu Jun 25, 2015 7:51 pm
Forum: Investing - Help with Personal Investments
Topic: VBTLX tax-loss harvesting, similar funds?
Replies: 9
Views: 658

Re: VBTLX tax-loss harvesting, similar funds?

I have another question too. This would be a short-term loss. Which income taxed at what rate gets offset by the loss when selling VBTLX? I don't have *short term* gains this year unless dividends from other investments or interest payments from VBTLX count. If it offsets the interest payments or t...
by grabiner
Wed Jun 24, 2015 9:35 pm
Forum: Investing - Theory, News & General
Topic: What ratio are you stocks/bonds and how old are you?
Replies: 254
Views: 15859

Re: What ratio are you stocks/bonds and how old are you?

One final observation from the data so far: Not only are Bogleheads in all age groups today being much more aggressive in their stock allocations than Mr. Bogle's standard recommendation of "age in bonds," but older Bogleheads are, relatively speaking, being a bit more aggressive than you...
by grabiner
Wed Jun 24, 2015 9:21 pm
Forum: Personal Finance (Not Investing)
Topic: IRS Fraud [Understanding fraudulent returns]
Replies: 6
Views: 878

Re: IRS Fraud [Understanding fraudulent returns]

You can have a refund held up for reasons other than fraud; I have had it happen three times with state taxes (twice the state's error, and once my error in copying an intermediate number on my return but computing the right total tax). This is another reason to avoid getting a refund.
by grabiner
Wed Jun 24, 2015 9:15 pm
Forum: Personal Finance (Not Investing)
Topic: What credit should you get? (Ask me anything)
Replies: 52
Views: 5836

Re: What credit should you get? (Ask me anything)

About me: I fly often between LA and NY, mostly United. Good credit history. Pretty high spending and eat out a lot (i'm not an ideal boglehead). What would you recommend? Are you an elite-level frequent flyer on United? If not, a United card will give you one free checked bag when you fly, which m...
by grabiner
Wed Jun 24, 2015 8:53 pm
Forum: Investing - Theory, News & General
Topic: What ratio are you stocks/bonds and how old are you?
Replies: 254
Views: 15859

Re: What ratio are you stocks/bonds and how old are you?

Age 47, 98% stock counting my mortgage as a negative bond (which I do for asset allocation purposes), 88% not counting it. I also overweight small-cap, value, and emerging markets, so I am taking a bit more risk than even these numbers suggest. Yes, I know that I have one of the most aggressive port...
by grabiner
Wed Jun 24, 2015 8:49 pm
Forum: Investing - Theory, News & General
Topic: Vanguard Tax-Managed Small-Cap Fund
Replies: 15
Views: 1439

Re: Vanguard Tax-Managed Small-Cap Fund

Great thread. I thought I was the only one that used the Vanguard Tax-Managed Small-Cap Fund in a tax advantaged account, but I guess not. I bought the fund specifically because it tracks the S&P Small Cap 600. If you like the S&P 600, Vanguard's ETF VIOO tracks that index, and doesn't incu...
by grabiner
Wed Jun 24, 2015 8:46 pm
Forum: Investing - Theory, News & General
Topic: What was the 2008 crash like in real time?
Replies: 217
Views: 19426

Re: What was the 2008 crash like in real time?

There seems to be a paucity of people who rebalanced into equities to get back to their stated asset allocation during this time. Recalling the chart I posted earlier in this thread, equities were down 20% in 2008 before the drop in October and they were down more than that in October and again fro...
by grabiner
Wed Jun 24, 2015 8:18 pm
Forum: Investing - Help with Personal Investments
Topic: Transferring a Stock to Vanguard - Cost Basis accuracy
Replies: 14
Views: 1156

Re: Transferring a Stock to Vanguard - Cost Basis accuracy

Does the 1099 from Vanguard even report cost basis information for non-covered shares. They don't have to and the IRS would ignore anything they do report. I would have understood that most brokers would not have any data on the 1099 in that case, but maybe some do as a convenience. Vanguard will r...
by grabiner
Wed Jun 24, 2015 8:14 pm
Forum: Investing - Help with Personal Investments
Topic: Only contribute to the match?
Replies: 12
Views: 1337

Re: Only contribute to the match?

@ruralavalon the only international stock that I have right now is in my Vanguard target 2060 fund which is 90/10 and 35% of the stock is international. My 401K does offer an S&P 500 index, how should I change my percentages with how I have the 401(K) spread out? The Target Retirement fund isn'...
by grabiner
Wed Jun 24, 2015 8:06 pm
Forum: Investing - Help with Personal Investments
Topic: uncertain future: pay off mortgage or continue to invest, or wait?
Replies: 11
Views: 1514

Re: uncertain future: pay off mortgage or continue to invest, or wait?

Will pay down half of the principle to reduce monthly mortgage a good option too? This won't even help unless you can get the lender to recast the mortgage. Normally, when you make extra payments on a fixed-rate mortgage, the monthly payment due doesn't change but the mortgage gets paid off faster....

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