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

And, of course, there is some extra value in getting a tax deduction. I've been ignoring that. It doesn't necessarily change the value of the portfolio, but it could allow me more disposable income to throw at it. The tax deduction is a wash; you can deduct your margin interest, but you pay tax on ...
by grabiner
Fri Jul 25, 2014 1:00 am
 
Forum: Investing - Theory, News & General
Topic: Should I use margin to buy a balanced fund?
Replies: 132
Views: 6074

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

I had a head to head comparison for VSS and SCZ over morningstar. Looks like SCZ has been consistently generating higher SHarpe, alpha and more tax efficient than VSS? Alpha and Sharpe ratio aren't meaningful when you compare funds in different asset classes; the proper measurement of alpha is rela...
by grabiner
Fri Jul 25, 2014 12:56 am
 
Forum: Investing - Help with Personal Investments
Topic: Do you split your VEU (into VEA+VWO) & VEA (into VGK+VPL)?
Replies: 32
Views: 1383

Re: Old Mortgage about to 'fall off' credit report - now wha

In generating a free credit report for myself last week, I noticed that my old mortgage is about to age out of my report (10 years). This means I will only have credit cards as my sole form of debt. Does anyone here have any fact-based opinion if this will negatively affect my score? I only care be...
by grabiner
Thu Jul 24, 2014 8:16 pm
 
Forum: Personal Finance (Not Investing)
Topic: Old Mortgage about to 'fall off' credit report - now what?
Replies: 13
Views: 1159

Re: Please help settle an argument

Count the cost of extra insurance. Loans may make you take out comprehensive coverage, which you might not want to carry as a boglehead that drives conservatively. It could rival your interest cost, if you are young and male it could be prohibitive. When I was young some years I paid $2000 in insur...
by grabiner
Thu Jul 24, 2014 1:01 am
 
Forum: Personal Finance (Not Investing)
Topic: Please help settle an argument
Replies: 23
Views: 1879

Re: Advice: Switched Job, New Company has no 401k Till Octob

Welcome to the forum! It won't cost much to wait while you learn what to do. You might decide that it would be better to roll your old 401(k) into an IRA, if you have better options in the IRA than in the new 401(k). But the cost of waiting is trivial. If you keep your investments in similar funds, ...
by grabiner
Thu Jul 24, 2014 12:53 am
 
Forum: Personal Finance (Not Investing)
Topic: Advice: Switched Job, New Company has no 401k Till October
Replies: 2
Views: 261

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

Would you mind giving more pointer where I could find how many % is the 'qualified dividend income' within an ETF? From the Vanguard Tax Center, under Information for specific Vanguard funds: Qualified dividend income—2013 year-end figures Changing the year in the link works for 2009-2012. Note tha...
by grabiner
Thu Jul 24, 2014 12:42 am
 
Forum: Investing - Help with Personal Investments
Topic: Do you split your VEU (into VEA+VWO) & VEA (into VGK+VPL)?
Replies: 32
Views: 1383

Re: Need Guidance

Are you eligible for PSLF? https://studentaid.ed.gov/repay-loans/forgiveness-cancellation/charts/public-service Yes, we are eligible but we have to change how we structured the debt on our loans. It is one of my priorities once we get access to that loan. We will not be discharged from bankruptcy f...
by grabiner
Wed Jul 23, 2014 10:03 pm
 
Forum: Personal Finance (Not Investing)
Topic: Need Guidance [Chapter 7 Bankruptcy]
Replies: 7
Views: 665

Re: Hw many credit cards to own?

But you shouldn't care; both of those scores are good enough that you won't be denied credit or charged a higher rate based on the score. (The Trans Union score used by Credit Karma is on the same range as many versions of FICO, but it tends to be lower, which is why Credit Karma considers 750+ to ...
by grabiner
Wed Jul 23, 2014 9:58 pm
 
Forum: Personal Finance (Not Investing)
Topic: Hw many credit cards to own?
Replies: 68
Views: 3756

Re: The article on tax efficient placement needs to be rewri

http://www.bogleheads.org/wiki/Principles_of_tax-efficient_fund_placement The entire article is written with the implicit assumption that it's better to hold bonds in a tax-advantaged space because of how the gains are taxed. Only a small section is provided with criticism of this idea, but without...
by grabiner
Wed Jul 23, 2014 9:46 pm
 
Forum: Investing - Theory, News & General
Topic: The article on tax efficient placement needs to be rewri
Replies: 60
Views: 2981

Re: Do you own a DOW30 or NASDAQ100 index fund?

The problem with these funds isn't the number of companies, but the narrow focus. The NASDAQ 100 is heavily weighted to technology, and the Dow 30 is 30 huge industrial companies. A narrow focus is OK if it fits your needs for that one investment. If you need a large-cap growth or value fund, Vangua...
by grabiner
Wed Jul 23, 2014 9:13 pm
 
Forum: Investing - Theory, News & General
Topic: Do you own a DOW30 or NASDAQ100 index fund?
Replies: 14
Views: 707

Re: Vanguard Account Owners - has this happened to you?

There are also times that what happens isn't Vanguard's responsibility. I had a Vanguard 403(b) with an old employer, and I had tracked it for several years when it disappeared. I asked Vanguard what had happened, and they forwarded me a note from the old employer (which apparently didn't have my ne...
by grabiner
Wed Jul 23, 2014 9:07 pm
 
Forum: Investing - Help with Personal Investments
Topic: Vanguard Account Owners - has this happened to you?
Replies: 17
Views: 2548

Re: Do you split in-state and fed munis? If so, how?

I am in a minority. I only use CA IT TE. Many others recommend no more than 50% in CA, the rest in National. For me, most of my bonds are not in taxable, so the amounts just aren't that big. I think at the peak, I was 50% CA muni and 50% taxable in tax-deferred accounts (if you can make sense of ta...
by grabiner
Wed Jul 23, 2014 9:03 pm
 
Forum: Investing - Help with Personal Investments
Topic: Do you split in-state and national munis? If so, how?
Replies: 16
Views: 632

Re: Ameriprise Wrap Fees includes cash??

There can be a legitimate business reason for including cash in the wrap/AUM fee. An argument can be made that by making the wrap fee apply to cash the advisor has less of an incentive to acquire investments for the purpose of generating a wrap/AUM fee. Just like there might be legitimate reasons t...
by grabiner
Wed Jul 23, 2014 9:01 pm
 
Forum: Investing - Help with Personal Investments
Topic: Ameriprise Wrap Fee includes cash??
Replies: 3
Views: 326

Re: AA for a spoiled young buck

William4u - Thanks for the input. I sold about half of the American Century funds two years ago to use towards my house down payment. I'll sell ~$5 each of the next few years to keep under the next bracket, then. Janus I will plan on leaving alone until the American Century fund is dry. If you are ...
by grabiner
Wed Jul 23, 2014 8:40 pm
 
Forum: Investing - Help with Personal Investments
Topic: AA for a spoiled young buck
Replies: 18
Views: 2624

Re: Hw many credit cards to own?

In terms of credit score, I seem to have cracked the Vantagescore since I have a perfect 990 . My Creditkarma Transunion score is only 772 out of 850, though. I'm really not sure what I could possibly do to increase it. CK simulator doesn't help, nothing I can do will increase the score by even 1 p...
by grabiner
Wed Jul 23, 2014 8:33 pm
 
Forum: Personal Finance (Not Investing)
Topic: Hw many credit cards to own?
Replies: 68
Views: 3756

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: 12
Views: 1149

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: 3368

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: 32
Views: 1383

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: 68
Views: 3756

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: 2751

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: 77
Views: 3315

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: 77
Views: 3315

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: 267

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: 68
Views: 3756

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: 6901

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: 2342

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: 132
Views: 6074

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: 2263

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: 2342

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: 442

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: 3100

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: 3551

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: 1047

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: 18
Views: 2624

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: 736

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: 1523

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: 3551

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: 3324

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: 2751

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: 3551

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: 2588

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: 3181

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: 6901

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: 1523

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: 418

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: 1103

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: 1559

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: 889

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: 7021
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