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Re: i bonds or EE bonds?

Since my money market account was paying 5% just a few years ago, scenario (b) isn't that crazy. And life being what it is, neither is scenario (a). You wrote a nice long post about money illusion and then ended it with strong recency bias. EE bonds yield .5% more than 20 year treasuries plus have ...
by jdilla1107
Fri Jul 25, 2014 4:34 pm
 
Forum: Investing - Theory, News & General
Topic: i bonds or EE bonds?
Replies: 46
Views: 6012

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

Another thing rca1824 forgot is that there is a very big 0% tax bracket on long term gains.

Anyone that plans to retire early should take this into account as well. I have large equity gAins and think I can pay 0% on a big part of it.
by jdilla1107
Wed Jul 23, 2014 6:16 pm
 
Forum: Investing - Theory, News & General
Topic: The article on tax efficient placement needs to be rewri
Replies: 75
Views: 4068

Re: Bond strategy resilient to rate increase

The flaw is that the FOMC really only controls very short term rates and BND will behave more like an intermediate bond. They have very little to do with each other and few people understand this. The vast majority of people do not even understand what it means for "interest rates" to incr...
by jdilla1107
Mon Jul 21, 2014 7:50 pm
 
Forum: Investing - Theory, News & General
Topic: Bond strategy resilient to rate increase
Replies: 13
Views: 1517

Re: Should I use my margin to buy bonds?

I am not opposed to buying on margin.. Indeed, we took out a 401(k) loan in order to buy a bond fund in a 529 account. There was no way that that was going to do worse than not taking out the 401(k) loan. Anyways, I think you should go first with this, start a new thread to document your transactio...
by jdilla1107
Thu Jul 17, 2014 5:40 pm
 
Forum: Investing - Theory, News & General
Topic: Should I use my margin to buy bonds?
Replies: 41
Views: 3422

Re: Brokered CD's vs Bonds

The big thing the pro-CD crowd misses is riding the yield curve. A 5 year CD held for 3 years is then a 2 year CD yielding almost nothing, because you could have sold it for the majority of the remaining interest. http://www.bogleheads.org/forum/viewtopic.php?t=132601&f=10 In addition, brokered ...
by jdilla1107
Fri Jul 11, 2014 8:13 pm
 
Forum: Investing - Theory, News & General
Topic: Brokered CD's vs Bonds
Replies: 24
Views: 2669

Re: Tax Efficiency of Treasuries

Are you really going to have the same marginal tax rate 20 years in the future?
by jdilla1107
Fri Jul 11, 2014 8:54 am
 
Forum: Investing - Theory, News & General
Topic: Tax Efficiency of Treasuries
Replies: 19
Views: 1611

Re: Hidden cost of Bid-Ask spread in purchasing ETF's

I have some VSS that I want to sell/buy for some tax gain harvesting. Even though it's mathematically beneficial, psychologically, thinking about the spread kills me. :) It is easy to be penny wise and pound foolish here too - trust me, I know. :( Nothing worse than waiting for the spread to tighte...
by jdilla1107
Wed Jul 09, 2014 10:45 pm
 
Forum: Investing - Help with Personal Investments
Topic: Hidden cost of Bid-Ask spread in purchasing ETF's
Replies: 27
Views: 3751

Re: In Which Theories Should I Have Confidence?

Consider going back to first principles: http://www.bogleheads.org/wiki/Bogleheads%C2%AE_investment_philosophy The fact that you are making changes based on threads on this forum means you are failing, in my opinion. This is a public forum where anyone can write almost anything. You should only be m...
by jdilla1107
Mon Jul 07, 2014 8:36 pm
 
Forum: Investing - Theory, News & General
Topic: In Which Theories Should I Have Confidence?
Replies: 43
Views: 4256

Re: P2P Lending

I have done LC for about two years. Some things to consider: - The defaults are high. A stated rate of 10-12% can easily turn into 5-6%. I have had several notes where the person takes a loan and also immediately declares bankruptcy which means people are using lending club almost like easy money fo...
by jdilla1107
Wed Jul 02, 2014 8:29 pm
 
Forum: Investing - Help with Personal Investments
Topic: P2P Lending
Replies: 12
Views: 896

Re: What is simple enough to understand, and therefore inves

The vast majority of what is being debated on this forum is minutia between hobbyists. It's done because people find it interesting. It's similar to a automtive forum where people debate the minutia of cars, when you could just buy a camry and never think about it again. If you don't find it interes...
by jdilla1107
Sat Jun 28, 2014 10:41 am
 
Forum: Investing - Theory, News & General
Topic: What is simple enough to understand, and therefore invest in
Replies: 27
Views: 1897

Re: What % do US public companies compound $ at?

Dear Millennial,

Was this a text? Perhaps you eyeballed it from google glass? Here on these old school "message boards" we still try to write complete thoughts.

Let me try a differnt way.

What the what R U sayin?
by jdilla1107
Thu Jun 26, 2014 7:55 pm
 
Forum: Investing - Theory, News & General
Topic: What % do US public companies compound $ at?
Replies: 2
Views: 338

Re: Why buy a car with cash?

Hasn't been my experience. I got sub invoice on a .9% loan several years back. The financing comes from the car company not the dealer. Now if they would have offered 2k instead of the financing, I would have done that no questions asked. If you get 0% financing, it means you could have gotten a lo...
by jdilla1107
Mon Jun 23, 2014 11:31 pm
 
Forum: Personal Finance (Not Investing)
Topic: Why buy a car with cash?
Replies: 83
Views: 6089

Re: Why buy a car with cash?

If you get 0% financing, it means you could have gotten a lower price on the car. 0% financing costs real money and they build that into the price. You won't be able to get close to invoice price with 0% financing, but you can with cash. This is exactly why the dealer wants to know if you are financ...
by jdilla1107
Mon Jun 23, 2014 10:43 pm
 
Forum: Personal Finance (Not Investing)
Topic: Why buy a car with cash?
Replies: 83
Views: 6089

Re: Poll: Dave Ramsey - Harmful or helpful?

My parents dumped a huge position in GNMAs recently based on Ramsey's advice that they are going down. Now their money is sitting in cash while they wait. I begged them not to and now GNMAs are up about 3% from where they sold, so of course they have to keep waiting. I'm frustrated at them and the m...
by jdilla1107
Mon Jun 23, 2014 7:46 pm
 
Forum: Personal Finance (Not Investing)
Topic: Poll: Dave Ramsey - Harmful or helpful?
Replies: 65
Views: 5077

Re: CNN Money article on US Savings Bonds.

EE bonds have a guaranteed double after 20 years, so the are actually perfect for a 20 year investment, especially if you care going from high to low tax bracket over that 20 years
by jdilla1107
Sun Jun 15, 2014 9:54 pm
 
Forum: Investing - Help with Personal Investments
Topic: CNN Money article on US Savings Bonds.
Replies: 7
Views: 1224

Re: If chasing market performance is bad...

People on this forum consistently misinterpret what reversion to the mean is. Let's take flipping a coin. Say you flip four heads in a row. What reversion to the mean says, is that if you do this 1000 more times, you will probably go from a heads flip rate of 100% to 50%. However, this does not mean...
by jdilla1107
Fri Jun 13, 2014 8:16 am
 
Forum: Investing - Theory, News & General
Topic: If chasing market performance is bad...
Replies: 85
Views: 4742

Re: How important is an ETF volume?

I would not touch an etf with that low of volume.

I don't really understand your tax situation, but can you just do a mutual fund?
by jdilla1107
Fri Jun 13, 2014 8:06 am
 
Forum: Investing - Theory, News & General
Topic: How important is an ETF volume?
Replies: 4
Views: 372

Re: Vanguard naming of bond funds

rkatz0 wrote:Why wouldn't this be basically the same? Vanguard Intermediate-Term Bond ETF (BIV)


That's a taxable fund. I was discussing muni tax-exempt funds.
by jdilla1107
Fri Jun 06, 2014 11:16 pm
 
Forum: Investing - Theory, News & General
Topic: Vanguard naming of bond funds
Replies: 18
Views: 1232

Re: Vanguard naming of bond funds

Inclusion of "average state maturity" on VG site appears to be a relatively new change (for the better). See this thread for more information. http://www.bogleheads.org/forum/viewtopic.php?f=10&t=140327 Thanks, that was helpful. So, the duration is like an expected case as opposed to ...
by jdilla1107
Fri Jun 06, 2014 11:01 pm
 
Forum: Investing - Theory, News & General
Topic: Vanguard naming of bond funds
Replies: 18
Views: 1232

Re: Vanguard naming of bond funds

Ok, so the average maturity is the difference. I have to admit to always having just looked at duration. If you look at vanguard treasury funds, the duration is very close to the maturity value. Why does the fact that the muni bonds are callable help lower the duration so much? That seems backwards ...
by jdilla1107
Fri Jun 06, 2014 10:56 pm
 
Forum: Investing - Theory, News & General
Topic: Vanguard naming of bond funds
Replies: 18
Views: 1232

Re: Changed asset allocation from 60/40 to 50/50 today

StarbuxInvestor wrote:I don't see bonds as necessarily safer than stocks at their valuations.


:oops:

It's a never ending battle here with the bond fear, uncertainty, and doubt. With 1000+ posts are you being flippant, or do you actually believe this?
by jdilla1107
Fri Jun 06, 2014 6:27 pm
 
Forum: Investing - Theory, News & General
Topic: Changed asset allocation from 60/40 to 50/50 today
Replies: 56
Views: 5323

Vanguard naming of bond funds

Why does vanguard name their long term tax exempt fund as "long", when the other intermediate funds seem to be identical in terms of duration? (I ask because the intermediate tax exempt is closed to me and I keep acquiring the long term tax exempt fund, which doesn't appear to be long at a...
by jdilla1107
Fri Jun 06, 2014 12:50 pm
 
Forum: Investing - Theory, News & General
Topic: Vanguard naming of bond funds
Replies: 18
Views: 1232

Re: Will the new currency law impact Vanguard Int'l Value Fu

Can you explain why you think this law has anything to do with holding an international fund? The goal of the law is to find offshore accounts held by U.S. taxpayers seeking to avoid paying taxes on them.

Stay the course and do nothing.
by jdilla1107
Fri May 30, 2014 10:32 pm
 
Forum: Investing - Theory, News & General
Topic: Will the new currency law impact Vanguard Int'l Value Fund?
Replies: 6
Views: 1067

Re: Should I use my margin to buy bonds?

One year treasuries pay much less than 1.59%. If you buy longer term you have interest rate risk. You only have interest rate risk if you intend to sell instead of holding to maturity. Google fixed vs floating rate. And note that you always have interest rate risk any time you hold any fixed rate i...
by jdilla1107
Tue May 27, 2014 9:12 pm
 
Forum: Investing - Theory, News & General
Topic: Should I use my margin to buy bonds?
Replies: 41
Views: 3422

Re: Should I use my margin to buy bonds?

One year treasuries pay much less than 1.59%.

If you buy longer term you have interest rate risk.
by jdilla1107
Tue May 27, 2014 6:27 pm
 
Forum: Investing - Theory, News & General
Topic: Should I use my margin to buy bonds?
Replies: 41
Views: 3422

Re: DFA Core-- Why bother with bottom 1000 names?

JoMoney The way it works is that you can be seller if you have cash to invest and you are patient trader, price maker not taker. So say in 2008 when almost all funds were experiencing outflows DFA was experiencing inflows. So say a small stock is trading 10 bid 10.2 asked and a fund must sell to ra...
by jdilla1107
Wed May 21, 2014 6:07 pm
 
Forum: Investing - Theory, News & General
Topic: DFA Core-- Why bother with bottom 1000 names?
Replies: 19
Views: 1650

Re: Understanding HSA reimbursement

Thanks for the responses. I don't actually want to get reimbursed, so I'm not going to pursue it with them. I was really just making sure my plan of not reimbursing myself now was not going to lead to a major future headache.

Sounds like I am good.
by jdilla1107
Mon May 19, 2014 11:29 pm
 
Forum: Personal Finance (Not Investing)
Topic: Understanding HSA reimbursement
Replies: 14
Views: 1143

Re: Understanding HSA reimbursement

I am choosing not to reimburse myself from my HSA and let it grow. I save all receipts/statements and was hoping to reimburse myself in retirement. However, I noticed My HSA provider requires that people send in all of the receipts and statements to get reimbursed. I thought that HSA reimbursement ...
by jdilla1107
Sat May 17, 2014 11:28 pm
 
Forum: Personal Finance (Not Investing)
Topic: Understanding HSA reimbursement
Replies: 14
Views: 1143

Re: Why Avoid Long-Term Bonds?

Total Bond Market holds about 15%-20% long term bonds. There's nothing wrong with them in moderation. The main concern is that people over do it in their quest to stretch for yield. If you are going to hold long term bonds as part of a diversified fixed income portfolio, then great. If you are sick ...
by jdilla1107
Sat May 17, 2014 10:42 pm
 
Forum: Investing - Theory, News & General
Topic: Why Avoid Long-Term Bonds?
Replies: 67
Views: 6394

Re: Newest, hottest investment fad....

Diversification of wealth has been successful for thousands of years. I think it's perhaps one of the concepts least like a fad that I can think of.

The legal structure of diversification of wealth (index funds) is not the important part.
by jdilla1107
Fri May 16, 2014 7:43 pm
 
Forum: Investing - Theory, News & General
Topic: Newest, hottest investment fad....
Replies: 31
Views: 4571

Understanding HSA reimbursement

I am choosing not to reimburse myself from my HSA and let it grow. I save all receipts/statements and was hoping to reimburse myself in retirement. However, I noticed My HSA provider requires that people send in all of the receipts and statements to get reimbursed. I thought that HSA reimbursement w...
by jdilla1107
Wed May 14, 2014 5:58 pm
 
Forum: Personal Finance (Not Investing)
Topic: Understanding HSA reimbursement
Replies: 14
Views: 1143

Re: POLL: "Channel Trading", advanced concepts

This always works until it doesn't. The breakouts are always much easier to identify after the fact.
by jdilla1107
Mon Apr 28, 2014 9:46 pm
 
Forum: Investing - Theory, News & General
Topic: POLL: "Channel Trading", advanced concepts
Replies: 22
Views: 1972

Re: selling covered calls to generate income

Most options are not exercised until the expiration date. This means your strike price could be passed and you have to sit on it for another 6 months (or whatever time you have left) This means you are out of the market for all that time.
by jdilla1107
Sat Apr 26, 2014 10:50 pm
 
Forum: Investing - Help with Personal Investments
Topic: selling covered calls to generate income
Replies: 9
Views: 1257

Re: Poll: Would you EVER recommend 100% equity?

Person 1: 100% equity on a portfolio of 100k Person 2: 50-50 equity/bonds on a 3m portforlio. Who is taking more equity risk? This forum constantly has the above two people arguing with one another. Percentages are sort of silly for measuring equity risk. Someone with a 50k portfolio is perfectly fi...
by jdilla1107
Sat Apr 26, 2014 8:02 pm
 
Forum: Investing - Theory, News & General
Topic: Poll: Would you EVER recommend 100% equity?
Replies: 136
Views: 26851

Re: New Baby Girl - What Can/Should We Do?

It appears that Missouri offers a state tax break for 529 contributions, so make sure you consider that in your decision.

And you should absolutely switch to traditional TSP making 200k.
by jdilla1107
Mon Apr 21, 2014 8:24 pm
 
Forum: Investing - Help with Personal Investments
Topic: New Baby Girl - What Can/Should We Do?
Replies: 49
Views: 4727

Re: Stock index futures

The Vanguard Total Stock Market Index Fund currently own about $.32 Trillon of domestic equities. Does a $10 Billion purchase of domestic equities index futures have the same impact on domestic equity markets as a $ 10 Billion purchase of the actual domestic equities comprising the index? I will ta...
by jdilla1107
Wed Mar 26, 2014 10:13 pm
 
Forum: Investing - Theory, News & General
Topic: Stock index futures
Replies: 4
Views: 705

Re: Using Asset allocation spreadsheet w/ tax adjustment ?

Suppose that you have a 33% retirement tax rate (combined federal and state) on your 401(k), and zero on your Roth IRA. With a state tax rate of 5%, to hit 33% average tax rate as married, you would have to be withdrawing over $400,000 per year. If you are talking marginal rate, then that's doing i...
by jdilla1107
Fri Mar 21, 2014 11:08 pm
 
Forum: Investing - Theory, News & General
Topic: Using Asset allocation spreadsheet w/ tax adjustment ?
Replies: 9
Views: 667

Re: What to do without a 401k?

Everything you say sounds correct to me and I don't think there is anything else you can do along the lines of retirement accounts. Taxable can be pretty decent if you stick to passive equity index funds. It has lower cap gains and dividends rates than income rates. You could consider I bonds or EE ...
by jdilla1107
Sun Mar 16, 2014 10:00 pm
 
Forum: Investing - Help with Personal Investments
Topic: What to do without a 401k?
Replies: 18
Views: 1201

Re: GNMA

Are you asking if this news affects GNMA bonds in some direct way? Just to be clear, Ginnie Mae securities are the only mortgage-backed securities that are backed by the "full faith and credit" guaranty of the United States government. Their risk profile is essentially that of a treasury b...
by jdilla1107
Tue Mar 11, 2014 11:18 pm
 
Forum: Investing - Theory, News & General
Topic: GNMA
Replies: 6
Views: 908

Re: Large capital gain this year

To all the people down on this strategy, this is a very common TLH strategy and all of the questions can be answered with "think of tax loss harvesting, it's the same idea." The main issue with this is the time/effort to implement this strategy and the risk of less diversification. You are...
by jdilla1107
Tue Mar 11, 2014 10:13 pm
 
Forum: Investing - Help with Personal Investments
Topic: Large capital gain this year
Replies: 79
Views: 4204

Re: bond ltd term vs intermediate switch

Why did you originally invest liKe this and why are you changing now?
by jdilla1107
Mon Mar 10, 2014 7:33 am
 
Forum: Investing - Help with Personal Investments
Topic: bond ltd term vs intermediate switch
Replies: 2
Views: 362

Re: FutureAdvisor.com

This service should cost like $50 to $100 a year. 0.5% AUM is way too high. (AUM for this service doesn't even really make sense to me.) In my mind, the entire point of paying an advisor is to have a person that you trust to talk you down from the ledge and create a plan for you. This person should ...
by jdilla1107
Thu Mar 06, 2014 11:46 pm
 
Forum: Investing - Theory, News & General
Topic: FutureAdvisor.com
Replies: 8
Views: 790

Re: Public companies buying index funds

It's a method that can be used to virtually guarantee the companies long term survival. A corporation netting 50 million dollars a year can put a large portion of the net income in a boglehead like portfolio and virtually gaurantee the company will still be around in 100 years while the vast majori...
by jdilla1107
Thu Feb 27, 2014 11:18 pm
 
Forum: Investing - Theory, News & General
Topic: Public companies buying index funds
Replies: 14
Views: 1361

Re: Reasonable to Avoid Short Term Bonds in Long Term invest

I avoid short term bonds as you suggest. Short term treasuries are a completely pointless, in my opinion. Investing in something that pays .04 to .3% is just silly for me. I basically model my own TBM by stripping out the short stuff and replacing it with: I-bonds, CDs, and intermediate bonds. (pay...
by jdilla1107
Sun Feb 23, 2014 11:57 pm
 
Forum: Investing - Help with Personal Investments
Topic: Reasonable to Avoid Short Term Bonds in Long Term investing?
Replies: 14
Views: 1063

Re: Reasonable to Avoid Short Term Bonds in Long Term invest

I avoid short term bonds as you suggest. Short term treasuries are a completely pointless I don't own many but they are not pointless. Let's say interest spikes. Your immediate term funds can't be sold until they recover (years aways) unless you want the loss. Now let's say markets tank. Military c...
by jdilla1107
Sun Feb 23, 2014 11:35 pm
 
Forum: Investing - Help with Personal Investments
Topic: Reasonable to Avoid Short Term Bonds in Long Term investing?
Replies: 14
Views: 1063

Re: Reasonable to Avoid Short Term Bonds in Long Term invest

I avoid short term bonds as you suggest. Short term treasuries are a completely pointless, in my opinion. Investing in something that pays .04 to .3% is just silly for me. I basically model my own TBM by stripping out the short stuff and replacing it with: I-bonds, CDs, and intermediate bonds. (payi...
by jdilla1107
Sun Feb 23, 2014 11:04 pm
 
Forum: Investing - Help with Personal Investments
Topic: Reasonable to Avoid Short Term Bonds in Long Term investing?
Replies: 14
Views: 1063

Re: How ETFs work

An interesting question: how close are we to the day when it would actually practical, at a reasonable cost, for someone to create a product or brokerage service like Fidelity's "baset trading" that would let take, say, $5,000 and place one single order that automatically buys tiny fracti...
by jdilla1107
Sat Feb 22, 2014 8:25 pm
 
Forum: Investing - Theory, News & General
Topic: How ETFs work
Replies: 8
Views: 696

Re: Market Timing Boom & Bust Cycles

I've worked in professional trading organizations for 10+ years. I also pretty religiously follow bogleaheads passive investing advice for my own investments. Successful trading and being a successful boglehead involve many of the same ideas: - Have a plan. - Make sure you stick to the plan - Make s...
by jdilla1107
Sat Feb 22, 2014 12:00 am
 
Forum: Investing - Theory, News & General
Topic: Market Timing Boom & Bust Cycles
Replies: 20
Views: 1374

Re: REITs in taxable

If you're in the distribution phase and spending the distributions, sure, why not? How is being in the distribution phase relevant in any way? Simple. A retiree needs cash flow from dividends. No, no, no. Retirees want qualified dividends just like everyone else and retirees should be following a t...
by jdilla1107
Wed Feb 19, 2014 11:14 pm
 
Forum: Investing - Theory, News & General
Topic: REITs in taxable
Replies: 37
Views: 2330

Re: Bonds go in taxable (whitecoatinvestor aka EmergDoc arti

But too many people are doing backflips trying to find a way to put REITs in taxable when the simple solution is to put bonds in taxable. Sorry, seems like straw man argument to me. I have never heard or read anyone doing this. The wiki labels REITs as "Very inefficient" and bond funds as...
by jdilla1107
Wed Feb 19, 2014 10:39 pm
 
Forum: Investing - Theory, News & General
Topic: Bonds go in taxable (whitecoatinvestor aka EmergDoc article)
Replies: 96
Views: 6246
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