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by jdilla1107
Sat May 09, 2015 1:13 pm
Forum: Investing - Theory, News & General
Topic: Vanguard investors: be thankful for ETFs!*
Replies: 24
Views: 3515

Re: Vanguard investors: be thankful for ETFs!*

I wonder if the fact that Vanguard does this leads to the ETFs being inferior compared to other ETFs from a tax efficiency perspective because the ETF holders are forced to share tax efficiency with the mutual fund class.
by jdilla1107
Sat May 09, 2015 10:54 am
Forum: Personal Finance (Not Investing)
Topic: NYT: 2% rebate credit cards; will they last?
Replies: 30
Views: 3270

Re: NYT: 2% rebate credit cards; will they last?

vitaflo wrote:All people are doing is getting 2% back on products that cost 2% more.


This would only be true if everyone used 2% cash back cards. If I instead use a card that pays 0%, then I'll pay 2% more for products and get 0% back.

A lot of people don't use rewards cards.
by jdilla1107
Wed May 06, 2015 8:23 pm
Forum: Personal Finance (Not Investing)
Topic: Long term Capital Gains vs Tax loss harvesting
Replies: 13
Views: 895

Re: Long term Capital Gains vs Tax loss harvesting

I may be missing something...*but* Why defer it? At some point you will pay, and the rate you pay is the same? 15%...whether is now or in 30 years. Matt You are forgetting inflation. Would you rather pay $5,000 in taxes now or in 30 years? In 30 years, $5,000 will be worth a lot less than it is now...
by jdilla1107
Sun Apr 26, 2015 10:16 am
Forum: Personal Finance (Not Investing)
Topic: Is the 1% Cost of Managing Money Worth It?
Replies: 53
Views: 4748

Re: Is the 1% Cost of Managing Money Worth It?

Some people are projecting 2-3% real returns over the next decade. That means that a small sounding number of 1% is actually 33%-50% of your investment returns.

How does it sound when you phrase it as "you 'll get half and they'll get half"?
by jdilla1107
Sat Apr 25, 2015 11:50 am
Forum: Investing - Theory, News & General
Topic: Someone please explain why ibonds are so great?
Replies: 16
Views: 2555

Re: Someone please explain why ibonds are so great?

also what about ee bonds? Other than the doubling after 20yrs what is the appeal of these right now? The current 20 yr treasury rate is 2.36%. EE bonds pay 3.53% if held for 20 years. That's a big difference. But, even better is that EE interest is tax deferred. So, if in 20 years you will be in a ...
by jdilla1107
Sat Apr 25, 2015 11:43 am
Forum: Investing - Theory, News & General
Topic: I-Bonds/TIPs:When interest rate rises, inflation is lowered?
Replies: 5
Views: 871

Re: I-Bonds/TIPs:When interest rate rises, inflation is lowe

Predicting the bond market is just as hard as predicting the stock market. The bond market also anticipates future events, just like the stock market. Your proposed plan is like saying, "So, I'll just buy stocks when consumers spend more." Too simplistic.
by jdilla1107
Sun Apr 12, 2015 8:47 am
Forum: Investing - Help with Personal Investments
Topic: I-Bonds vs EE Bonds vs TIPS vs Treasuries - 20 years
Replies: 22
Views: 1942

Re: I-Bonds vs EE Bonds vs TIPS vs Treasuries - 20 years

EE bonds are the best deal if you are certain you won't sell them for 20 years. This means you need other bonds available for rebalancing and EE bonds should probably be kept at less than 1/4 of your bond portfolio. Their illiquidity is a real concern you need to be mindful of. Also, note that if yo...
by jdilla1107
Thu Apr 09, 2015 8:40 pm
Forum: Personal Finance (Not Investing)
Topic: Setting up a Trust...
Replies: 13
Views: 1506

Re: Setting up a Trust...

Why are you interested in a trust? In the old days, a primary reason was to avoid estate taxes, but today you can pass 5.4m without paying estate taxes and that amount is indexed to inflation. Also, note that you can specify that trust be created in your will. So, your will can say something like &q...
by jdilla1107
Sun Apr 05, 2015 9:37 pm
Forum: Investing - Theory, News & General
Topic: Why are Bonds expensive?
Replies: 24
Views: 2381

Re: Why are Bonds expensive?

A well written answer from Ben Bernake: Part 1: http://www.brookings.edu/blogs/ben-bernanke/posts/2015/03/30-why-interest-rates-so-low Part 2: http://www.brookings.edu/blogs/ben-bernanke/posts/2015/03/31-why-interest-rates-low-secular-stagnation Part 3: http://www.brookings.edu/blogs/ben-bernanke/po...
by jdilla1107
Sun Mar 29, 2015 5:23 pm
Forum: Investing - Theory, News & General
Topic: Using my HSA as a ROTH IRA vehicle
Replies: 6
Views: 899

Re: Using my HSA as a ROTH IRA vehicle

Yes, many do this:

See "Paying current expenses out of pocket" here:

http://www.bogleheads.org/wiki/Health_savings_account
by jdilla1107
Sun Mar 29, 2015 8:42 am
Forum: Investing - Theory, News & General
Topic: Saving for a Car - investing in ST Muni bond mutual fund
Replies: 19
Views: 987

Re: Saving for a Car - investing in ST Muni bond mutual fund

The SEC Yield on this fund is reported as NEGATIVE .13%. http://www.morningstar.com/funds/XNAS/ATFCX/quote.html This is because the fees (1.38%) are higher than what the bonds actually return. This fund is quite literally a joke, in my opinion. Is your tax bracket high enough to benefit from muni fu...
by jdilla1107
Sat Feb 28, 2015 8:50 pm
Forum: Investing - Theory, News & General
Topic: Illiquid Assets
Replies: 46
Views: 4495

Re: Illiquid Assets

EE bonds are illiquid if used correctly and pay a nice premium over treasuries. If held for exactly 20 years they pay 3.53% where a 20yr treasury only pays 2.39% right now.
by jdilla1107
Sat Feb 28, 2015 4:49 pm
Forum: Investing - Theory, News & General
Topic: Bond Funds vs Individual Bonds
Replies: 11
Views: 768

Re: Bond Funds vs Individual Bonds

Bonds held in a fund act the same way as bonds held not in a fund when interest rates change. People that say otherwise have a fundamental lack of understanding of money and interest rates.
by jdilla1107
Mon Feb 23, 2015 8:59 pm
Forum: Investing - Theory, News & General
Topic: My review of the Wells Fargo HSA
Replies: 7
Views: 681

Re: My review of the Wells Fargo HSA

mikep wrote:I think Saturna is the cheapest .. you could buy a VG ETF for $14.95 per trade per year and invest the entire account. I use them and are happy with them.


Interesting. Didnt look at that one.
by jdilla1107
Mon Feb 23, 2015 8:48 pm
Forum: Investing - Theory, News & General
Topic: My review of the Wells Fargo HSA
Replies: 7
Views: 681

Re: My review of the Wells Fargo HSA

I believe Wells Fargo has the cheapest HSA out there if you are willing to put it all in their SP500 fund. I spent awhile looking at the different options and found this to be the case.
by jdilla1107
Mon Feb 16, 2015 9:58 pm
Forum: Investing - Help with Personal Investments
Topic: Bond investors...is there a crash on the horizon..!!
Replies: 43
Views: 3345

Re: Bond investors...is there a crash on the horizon..!!

alex_686 wrote:Investing in bonds is as risky as investing in stocks. The risk factors are different, but the absolute level of risk is the same. Bonds are offering very thin returns for the risks offered and could blow up any time.


No. You could not be more wrong by any reasonable definition of the word risk.
by jdilla1107
Thu Feb 12, 2015 9:50 pm
Forum: Investing - Help with Personal Investments
Topic: National muni tax-exempt funds
Replies: 10
Views: 1068

Re: National muni tax-exempt funds

The .47% ER on the fidelity fund is too high for me. Note that on a $50,000 investment the difference between .47% and .17% will be $150 a year, so the one time $75 fee might not be so bad.

You also might want to consider transferring to a different brokerage. $75 is very high in today's market.
by jdilla1107
Thu Feb 12, 2015 8:52 pm
Forum: Investing - Theory, News & General
Topic: buy gold in euro terms
Replies: 27
Views: 1438

Re: buy gold in euro terms

"Invest in gold in Euro terms" is a nonsensical idea. Agreed. But it sounds good. That's the kind of phrase that will help land you on CNBC. It's not. The trick is to think of an investment that would match the performance gold in euro terms. And that investment is a dual position in long...
by jdilla1107
Thu Feb 12, 2015 8:47 pm
Forum: Investing - Help with Personal Investments
Topic: National muni tax-exempt funds
Replies: 10
Views: 1068

Re: National muni tax-exempt funds

Not sure what you mean by the transaction fee for vanguard funds. I buy vanguard funds at my non-vanguard brokerage for no transaction fee. I do believe that the vanguard intermediate muni fund is closed to non-vanguard accounts right now though. BMBIX is a decent option in the intermediate muni cat...
by jdilla1107
Mon Feb 09, 2015 9:56 pm
Forum: Investing - Theory, News & General
Topic: buy gold in euro terms
Replies: 27
Views: 1438

Re: buy gold in euro terms

Why are these different, except for trading expenses? Plan A: 1. Buy gold with USD. 2. Sometime later, sell gold for USD. Plan B: 1. Buy Euros using USD. 2. Buy gold with said Euros. 3. Sometime later, sell gold for Euros. 4. Buy USD using said later Euros. Plan B includes currency risk. No, it doe...
by jdilla1107
Mon Feb 09, 2015 9:48 pm
Forum: Investing - Theory, News & General
Topic: buy gold in euro terms
Replies: 27
Views: 1438

Re: buy gold in euro terms

today on CNBC they were saying "buy gold in Euro terms" how do you do this? i thought gold is gold...? You are correct. Gold is gold and gold doesn't remember how you purchased it. When people say this sort of thing for a US investor, they mean holding two positions at the same time, a po...
by jdilla1107
Sat Jan 24, 2015 12:08 pm
Forum: Investing - Theory, News & General
Topic: Asness - The Small-Firm Effect Is Real, and It’s Spectacular
Replies: 62
Views: 7645

Re: Asness - The Small-Firm Effect Is Real, and It’s Spectac

. Since the inception of the Bridgeway fund BRSIX 7/31/1997 - 12/31/2014 - annualized return 11.8% = CRSP10 (Benchmark for BRSIX) 11.5% = Brirdgeway Ultra-small Co. Mkt (BRSIX) 10.0% = DFA US Microcap (DFSCX) 8.6% = Vanguard Small Cap Index (NAESX) 6.4% = Vanguard 500 (VFINX) http://quotes.mornings...
by jdilla1107
Sat Jan 17, 2015 5:33 pm
Forum: Investing - Theory, News & General
Topic: Does strategy even matter?
Replies: 12
Views: 1728

Re: Does strategy even matter?

You are right, it doesn't really matter all the much. However, the discussion serves an important purpose of truly understanding why you are doing something, so that when times get bad you stick to the plan. Defending and explaining your plan helps solidify it. Scrutiny is important for staying the ...
by jdilla1107
Sun Jan 11, 2015 5:53 pm
Forum: Investing - Theory, News & General
Topic: Anti- Market Timers still seem to endorse market-timing??
Replies: 22
Views: 2802

Re: Anti- Market Timers still seem to endorse market-timing?

What if it was 51% of the time heads and 49% of the time tails? The problem is that its very hard to measure "the coin's" probability. There is so much noise mixed in with the signal in the public markets, that it's almost impossible to measure. How many times would you have to flip a coi...
by jdilla1107
Sat Jan 10, 2015 5:59 pm
Forum: Investing - Help with Personal Investments
Topic: Looking to protect my downside - considering I/EE bonds, CDs
Replies: 15
Views: 1899

Re: Looking to protect my downside - considering I/EE bonds,

Also remember that EE bonds are tax deferred, which for some (like me) are as good as tax free. A 38% tax bracket means that the CD really yields 38% less than the stated yield. If you can redeem the EE bond in a low income future, you are even better off. Even if you can't retire having a "low...
by jdilla1107
Tue Jan 06, 2015 10:53 pm
Forum: Investing - Theory, News & General
Topic: New Vanguard AMT-free National Municipal Bond Fund
Replies: 95
Views: 10274

Re: Vanguard introduces first muni bond index fund and ETF

Strangely, iShares reports MUB's SEC Yield as 1.61%, and a duration of 6.29 years. MUB has $4B in AUM. http://www.ishares.com/us/products/239766/ishares-national-amtfree-muni-bond-etf I have been confused by the MUB SEC yield for awhile. I have always stayed in Vanguard Long-Term Tax-Exempt Fund be...
by jdilla1107
Sun Jan 04, 2015 2:00 pm
Forum: Investing - Theory, News & General
Topic: Boglehead theory on p2p lending?
Replies: 53
Views: 7886

Re: Boglehead theory on p2p lending?

I don't understand what you mean be "it's accounted for". I take on more risk - I have a higher expected return. If that return is achieved, i'd be on the upper end of the return spectrum - above the median. So, I don't understand in what sense that's accounted for - given the logic I've ...
by jdilla1107
Sun Jan 04, 2015 9:25 am
Forum: Investing - Theory, News & General
Topic: Boglehead theory on p2p lending?
Replies: 53
Views: 7886

Re: Boglehead theory on p2p lending?

My long term returns with LC (3 years now) are over 12%. Considering treasuries are paying 2% and my savings account is paying 2% and my expected return off my equities is 7-9%, I don't think 12% is too bad. Here is a graph from lending club about their returns: https://www.lendingclub.com/info/sta...
by jdilla1107
Thu Jan 01, 2015 5:01 pm
Forum: Investing - Theory, News & General
Topic: Boglehead theory on p2p lending?
Replies: 53
Views: 7886

Re: Boglehead theory on p2p lending?

My long term returns with LC (3 years now) are over 12%. Considering treasuries are paying 2% and my savings account is paying 2% and my expected return off my equities is 7-9%, I don't think 12% is too bad. Here is a graph from lending club about their returns: https://www.lendingclub.com/info/sta...
by jdilla1107
Thu Jan 01, 2015 9:53 am
Forum: Personal Finance (Not Investing)
Topic: Amazon tax refund bonus offer
Replies: 6
Views: 1960

Re: Amazon tax refund bonus offer

HR Block is doing this at other retailers too and you can do up to $9,000. https://www.hrblock.com/lp/refund-bonus.html I bought HR Block Deluxe for $27 on Amazon last week after seeing I would be forced to buy TT premeir which is $89. People who buy TT this year w/o some sort of deal are showing ex...
by jdilla1107
Mon Dec 29, 2014 9:15 am
Forum: Investing - Theory, News & General
Topic: What's Driving LT Treasuries This Year?
Replies: 17
Views: 1954

Re: What's Driving LT Treasuries This Year?

The German 10 yr currently yields 0.59%. Japan is 0.32%. Our 2.25% 10 year looks mighty high in comparison to Europe and Japan.
by jdilla1107
Sat Dec 27, 2014 3:18 pm
Forum: Investing - Help with Personal Investments
Topic: Splitting SCHE / VWO into Components
Replies: 7
Views: 412

Re: Splitting SCHE / VWO into Components

I consider VWO and SCHE to not be substantially identical and I TLH between them. Take that for what it's worth. The fact that they are entirely different fund companies and different indexes says they are different enough to me. In my opinion, the wash sale rule is to 1) stop opposite derivative po...
by jdilla1107
Wed Dec 24, 2014 12:12 pm
Forum: Investing - Theory, News & General
Topic: How can Bond Funds perform better than yield
Replies: 15
Views: 1675

Re: How can Bond Funds perform better than yield

A few of the major ways to make more than the stated yield. 1) Buy a 5 year treasury at 1.76%. Hold it for 3 years. You know have a 2 year treasury yielding 1.76%, but 2 year treasuries only yield 0.73%, so you sell it to someone else, take a capital gain and buy another 1.76% 5 year treasury. Doing...
by jdilla1107
Wed Dec 24, 2014 11:31 am
Forum: Investing - Theory, News & General
Topic: Active funds as hedge against EMH
Replies: 4
Views: 751

Re: Active funds as hedge against EMH

I feel like this doesn't make sense as not everything can be hedged. Most active equity funds are essentially index funds with tilts to specific companies or some factor. Setting fees aside, I feel pretty confident that active funds are going to overperform or underperform a little bit over long ter...
by jdilla1107
Mon Dec 22, 2014 9:51 pm
Forum: Investing - Theory, News & General
Topic: Index vs Hedge: Mr Bogle Low fee but Highly Risky manager ?
Replies: 19
Views: 1702

Re: Index vs Hedge: Mr Bogle Low fee but Highly Risky manage

Is this theoretical for you or actionable? Having a net worth of $5 million is probably the bare minimum needed to get in the door at a hedge fund. This is wrong in my experience. At one point, I looked at Paulson's fund and it was $250k buy in and you had to be an accredited investor. An accredite...
by jdilla1107
Mon Dec 22, 2014 9:46 pm
Forum: Investing - Help with Personal Investments
Topic: Any book recs specifically for Tax Harvesting?
Replies: 5
Views: 1492

Re: Any book recs specifically for Tax Harvesting?

I don't think there is much else to say besides this:

http://www.bogleheads.org/wiki/Tax_loss_harvesting

Maybe if you write out your understanding in your own words and post here with any questions it would help?
by jdilla1107
Fri Dec 19, 2014 10:29 pm
Forum: Investing - Help with Personal Investments
Topic: Tax loss harvesting in excess of $3000
Replies: 16
Views: 1926

Re: Tax loss harvesting in excess of $3000

Capital losses can not be used against dividends, only capital gains or 3k of income per year. The only reason to sell more than 3,000 of losses in a year is 1) so that you don't lose the opportunity to tax loss harvest and 2) so you can carry it forward to future years. I don't think there is a str...
by jdilla1107
Thu Dec 18, 2014 6:07 pm
Forum: Investing - Theory, News & General
Topic: Tax-inefficient total return investing ideas
Replies: 5
Views: 491

Re: Tax-inefficient total return investing ideas

The better thing to do here is convert traditional 401ks and iras to Roth ira. That should generate plenty of "income". I would do this up until the 25% tax bracket.
by jdilla1107
Thu Dec 18, 2014 4:55 pm
Forum: Investing - Theory, News & General
Topic: Bond Fund vs CDs - which to use?
Replies: 59
Views: 6163

Re: Bond Fund vs CDs - which to use?

Make sure you understand how bond funds can return much more than their stated SEC yield through riding the yield curve. CDs don't get this potential benefit. https://www.bogleheads.org/forum/viewtopic.php?t=132601&f=10 I use CDs with low break penalties when I need liquidity (eg: emergency fund...
by jdilla1107
Sat Dec 13, 2014 7:40 pm
Forum: Investing - Theory, News & General
Topic: Bond fund that pays no taxable interest?
Replies: 12
Views: 1547

Re: Bond fund that pays no taxable interest?

Note that right now EE bonds are yielding more than a full percentage point over a 20 year treasury. (2.45% vs 3.53%)

Over 20 years on $100,000, this comes out to an extra $38,000 in interest. In addition, the interest is tax deferred, which for some people (me) is as good as tax free.
by jdilla1107
Sat Dec 13, 2014 7:01 pm
Forum: Investing - Help with Personal Investments
Topic: Bid-Ask spread
Replies: 7
Views: 852

Re: Bid-Ask spread

>So I put a limit on the offer at $24.45. You didn't put a limit on the offer. You put a limit order between the bid and offer (24/25). The "last price" is the price of the last execution between a buyer and seller. It's a data point from the past. The Bid/ask are the current best order pr...
by jdilla1107
Tue Dec 09, 2014 10:25 pm
Forum: Investing - Theory, News & General
Topic: Bond fund that pays no taxable interest?
Replies: 12
Views: 1547

Re: Bond fund that pays no taxable interest?

A zero coupon bond does not defer taxes. You have to pay taxes every year on the imputed income:

http://www.sec.gov/answers/zero.htm

If you want to avoid taxes, your best choices are EE bonds, I bonds, and muni bonds.
by jdilla1107
Tue Dec 09, 2014 5:47 pm
Forum: Investing - Theory, News & General
Topic: Is the Boglehead Consensus on Long Bonds still Negative?
Replies: 29
Views: 3463

Re: Is the Boglehead Consensus on Long Bonds still Negative?

Vanguard Total Bond Market Index Fund has about15% of its bonds in long term bonds. Consider that as a starting point.
by jdilla1107
Thu Nov 27, 2014 12:41 pm
Forum: Investing - Theory, News & General
Topic: Valuation of EE Savings Bonds
Replies: 48
Views: 4728

Re: Valuation of EE Savings Bonds

When looking at EE bonds, you have to separate the following things: (people on this forum constantly intertwine them which is unhelpful) 1) The risk of long term bonds in general 2) The benefits of EE bonds over a 20 year treasury bond Much of this thread is discussing #1 yet many people hold long ...
by jdilla1107
Sat Nov 22, 2014 11:13 pm
Forum: Personal Finance (Not Investing)
Topic: TurboTax '14 Deluxe (Desktop) Excludes Schedule D
Replies: 223
Views: 32095

Re: TurboTax '14 Deluxe (Desktop) Excludes Schedule D

HR Block Deluxe is only $45.

Edit: It's only $30 on amazon
by jdilla1107
Sat Nov 22, 2014 5:55 pm
Forum: Investing - Theory, News & General
Topic: Making money/career in Trading
Replies: 25
Views: 2791

Re: Making money/career in Trading

I've worked in the financial trading space trading space for 10+ years. Poker is similar because: - You have to keep your emotions in check and not let them get in the way of making good decisions. - You have to understand risk/reward well. - You often times have to make complex decisions quickly an...
by jdilla1107
Sun Nov 16, 2014 5:53 pm
Forum: Personal Finance (Not Investing)
Topic: Advice Needed: Unique Situation At workplace
Replies: 28
Views: 4035

Re: Advise Needed: Unique Situation At workplace

HR is not your friend. I agree 100%. HR is there to protect the company, and is not a friend of the employee. However, if you can't convince someone in HR that your boss is the problem, then maybe you have to be honest with yourself and consider that you are (part) of the problem. Or more likely, m...
by jdilla1107
Sun Nov 16, 2014 2:04 pm
Forum: Personal Finance (Not Investing)
Topic: Advice Needed: Unique Situation At workplace
Replies: 28
Views: 4035

Re: Advise Needed: Unique Situation At workplace

The worst thing this person can do is let it fester and then have frustrations come out at bad times. This person should sit down with the boss one on one and share how they feel about these situations. If that conversation goes poorly, then ask someone from HR to sit in on the next conversation. Th...
by jdilla1107
Thu Nov 13, 2014 8:44 pm
Forum: Personal Finance (Not Investing)
Topic: After tax 401k rollover
Replies: 1
Views: 182

After tax 401k rollover

Real situation, fake numbers for my understanding. Say that I have: Traditional IRA: $100k 401k balance of $80K pre-tax and $20k after tax (not roth, but after-tax) The 20k after tax has only $200 in earnings and I recently quit my job. If I rollover the 80K to the traditional IRA and the 20k to a R...
by jdilla1107
Sat Nov 08, 2014 11:45 am
Forum: Investing - Theory, News & General
Topic: iBonds at zero % fixed
Replies: 84
Views: 10211

Re: iBonds at zero % fixed

I know the mechanics of ibonds. Fixed and variable interest rates. Returns as good as inflation. Tax free interest. The interest on I bonds is not tax free, its tax deferred. Tax deferred can be as good as tax free depending on your situation. Imagine someone is a high tax bracket now who takes ear...

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