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Re: How to complement VWENX to get full diversification?

I think Wellington adds value and so I have a substantial stake in an IRA. Adding a little to what TX_Turtle wrote, VWENX's FI allocation is typically weighted towards the longer end of intermediate and away from Treasuries and agency bonds. You might (or might not) want to consider supplementing to...
by larmewar
Tue Jul 29, 2014 10:10 pm
 
Forum: Investing - Help with Personal Investments
Topic: How to complement VWENX to get full diversification?
Replies: 9
Views: 1085

Re: USAA Changes effective 6 Aug 14

In my case, I really do hold USPRX and I don't want to pay the capital gains since Fidelity can't hold it...I have done the math...the capital gains tax vs bonus...the bonus loses everytime...so there's reasons for both... You might look into the wash sale rule. Buying another 500 index fund could ...
by larmewar
Tue Jun 17, 2014 10:22 pm
 
Forum: Investing - Help with Personal Investments
Topic: USAA Changes effective 6 Aug 14
Replies: 28
Views: 3901

Re: [Legacy USAA Whole Life -- What To Do?]

Call USAA and ask what the return and life insurance costs are. In my experience with a USAA U-life policy (about 1996), the life insurance cost has always been far lower than the guaranteed rates in the policy. The current interest rate is 4.5%; 0.5% above the guaranteed rate. I have no idea whethe...
by larmewar
Mon Jun 16, 2014 12:24 am
 
Forum: Personal Finance (Not Investing)
Topic: [Legacy USAA Whole Life -- What To Do?]
Replies: 17
Views: 3380

Re: Are hybrid cars a good idea yet?

I'll be buying a car after the 2015s come out. The car will eventually go to one of my daughters, so don't want to shell out for a Prius (only hybrid worth my consideration). For the Corolla, it appears the Eco engine gives about half the benefit of a hybrid in the size/price range for this ourchase...
by larmewar
Sun Jun 15, 2014 11:40 pm
 
Forum: Personal Finance (Not Investing)
Topic: Are hybrid cars a good idea yet?
Replies: 105
Views: 8377

Re: [Poll] How do you rebalance?

Where's the choice for eclectic?
New contributions
Balanced funds
Bands
Somewhat random
Part of tinkering
Limit contributions/excess to separate savings

Lar
by larmewar
Mon Jun 09, 2014 10:49 pm
 
Forum: Investing - Help with Personal Investments
Topic: [Poll] How do you rebalance?
Replies: 30
Views: 1733

Re: Rebalancing Question

The default is usually Average Cost, which uses has a different basis than FIFO. FIFO uses the basis (cost) of the first in shares. Average Cost, as the name implies, uses the average cost of shares.

Lar
by larmewar
Sat May 31, 2014 8:55 am
 
Forum: Investing - Help with Personal Investments
Topic: Rebalancing Question
Replies: 15
Views: 1124

Re: Holding the same fund in taxable and non-taxable account

Dividends can be directed into any fund, not just MM, with the same tax treatment. If the fund has a cap on annual purchases, e.g. Primecap, a VG rep has to setup the redirection of dividends. When shares are sold at a gain, as with most shares purchased since 2008, the wash sale rule doesn't apply....
by larmewar
Sat May 31, 2014 8:48 am
 
Forum: Investing - Help with Personal Investments
Topic: Holding the same fund in taxable and non-taxable accounts
Replies: 11
Views: 927

Re: Very basic social security question

If you download and install the AnyPIA benefit calculation program from the Social Security website, you can enter your income by year and run different cases. Once you qualify (think it is 10 years),your PIA and benefits depend on covered wages adjusted for increases. From your posts, it sounds lik...
by larmewar
Sat May 03, 2014 4:29 pm
 
Forum: Personal Finance (Not Investing)
Topic: Very basic social security question
Replies: 26
Views: 2108

Re: Newbie 401K Advice Needed

VG Primecap has been an outstanding fund, but has been closed to new investors almost forever. Now probably isn't a good time (over weight to health care/biotechnology and tech sectors), but you might consider the fund in the future.

Lar
by larmewar
Sat Apr 12, 2014 10:34 pm
 
Forum: Investing - Help with Personal Investments
Topic: Newbie 401K Advice Needed
Replies: 43
Views: 3459

Re: Thrift Savings Plan -- the G Fund

As EmergDoc wrote, G fund doesn't give gains as rates fall which had been the case the last few years until last summer. NAV doesn't drop when rates rise either. My guess is the "savvy investor" won't have much to say after rates go up and his bond funds drop. Comparing monthly G and F fun...
by larmewar
Sat Apr 12, 2014 12:29 am
 
Forum: Investing - Help with Personal Investments
Topic: Thrift Savings Plan -- the G Fund
Replies: 6
Views: 792

Re: Problem with Vanguard website

I was seeing malformed pages and command lines at the bottom of pages using IE from work and couldn't log in. Chrome from home was fine.

Lar
by larmewar
Sat Apr 12, 2014 12:15 am
 
Forum: Investing - Help with Personal Investments
Topic: Problem with Vanguard website
Replies: 25
Views: 2123

Re: Roth v. traditional TSP

TSP doesn't allow you to specify where distribution come from, TSP distributes proportionately to balances in each. So that along with being able to withdraw Roth contributions is why my Roth contributions go to Roth IRAs.

Lar
by larmewar
Fri Apr 11, 2014 11:58 pm
 
Forum: Investing - Help with Personal Investments
Topic: Roth v. traditional TSP
Replies: 7
Views: 538

Re: fund for future car purchase

At $500-1,000 per month you're looking at 3-4 years. So for a mutual fund would be a short-term bond. I would target a date for the purchase, then put funds into a CD every 3-6 months.

Lar
by larmewar
Fri Apr 11, 2014 11:43 pm
 
Forum: Investing - Help with Personal Investments
Topic: fund for future car purchase
Replies: 2
Views: 271

Re: Should everyone own I Bonds?

I "get around" the income limits by making large 401K contributions in years when I cash savings bonds for education.

Lar
by larmewar
Sat Mar 29, 2014 6:24 pm
 
Forum: Investing - Help with Personal Investments
Topic: Should everyone own I Bonds?
Replies: 44
Views: 5965

Re: International Bond Allocation?

Petrocelli,

The international bond allocation seems OK. If there is anything off on the bond allocation, it would be not enough TIPS for inflation protection.

Lar
by larmewar
Sat Mar 29, 2014 6:04 pm
 
Forum: Investing - Help with Personal Investments
Topic: International Bond Allocation?
Replies: 24
Views: 1861

Re: Bernstein on TIPS ladder vs TIPS fund

Why buy a TIPS fund and pay 0.2% ER (or more) when one can purchase TIPS at auction with no load and no expense? For myself, I evaluate the TIPS rates, fixed plus expected inflation, compare with alternatives and decide which to buy. If it eventually results in some sort of TIPS ladder, then so be i...
by larmewar
Sat Mar 29, 2014 5:58 pm
 
Forum: Investing - Help with Personal Investments
Topic: Bernstein on TIPS ladder vs TIPS fund
Replies: 25
Views: 2348

Re: Paying off the mortgage. Kind of.

The tax-free may not be worth as much as you think. If you don't have other deductions exceeding the standard deduction, there is no tax benefit. Then there is also the free loan to the mortgage company, aka escrow.

Lar
by larmewar
Sun Mar 02, 2014 1:13 am
 
Forum: Investing - Help with Personal Investments
Topic: Paying off the mortgage. Kind of.
Replies: 29
Views: 2841

Re: Help with selling active funds

If you have been reinvesting dividends and capital gains, take in/to cash and reinvest in funds you want. You can reduce holdings and minimize cap gains by selling specific shares, ones that have the least capital gains.

Lar
by larmewar
Sun Mar 02, 2014 1:06 am
 
Forum: Investing - Help with Personal Investments
Topic: Help with selling active funds
Replies: 6
Views: 407

Update E-Mail Addess

I'm assuming an e-mail address was associated with my registration. How do I change the e-mail address on my registration?

Lar
by larmewar
Mon Feb 03, 2014 1:40 am
 
Forum: Forum Issues and Administration
Topic: Update E-Mail Addess
Replies: 1
Views: 381

Re: I-Bond Purchase Over the Limit was Allowed ?

Back to the gift box, but with a different twist. Is there anything preventing one from purchasing >>$10K in I-bonds in the gift box, then and not delivering the I-bonds until a future year?

Lar
by larmewar
Sun Dec 01, 2013 12:28 am
 
Forum: Investing - Help with Personal Investments
Topic: I-Bond Purchase Over the Limit was Allowed ?
Replies: 47
Views: 4636

Re: investment with after tax money or pay off mortgage?

Be sure to correctly take interest deduction into account correctly. If your itemized deductions without mortgage interest deduction are less than your standard deduction, then some of interest isn't providing an income tax benefit. And when you payoff the mortgage, you will no longer be giving the ...
by larmewar
Thu Nov 21, 2013 11:39 pm
 
Forum: Investing - Help with Personal Investments
Topic: investment with after tax money or pay off mortgage?
Replies: 29
Views: 1955

Re: TSP or Vanguard

TSP retirement distributions are distributed between regular and Roth according to respective balances. I don't whether the same applies to rollovers from TSP to IRAs. Anyway,the lack of control with a Roth TSP is less than ideal.

Lar
by larmewar
Thu Oct 31, 2013 11:27 pm
 
Forum: Investing - Help with Personal Investments
Topic: TSP or Vanguard
Replies: 13
Views: 1984

Re: When to get rid of Wellington in taxable acct

If the decision is to wait for LTCG treatment or just continue to hold, dividend and CG distributions should be directed to another VG fund or taken as cash so as to not increase the taxable Wellington holding..

Lar
by larmewar
Thu Oct 31, 2013 10:55 pm
 
Forum: Investing - Help with Personal Investments
Topic: When to get rid of Wellington in taxable acct
Replies: 16
Views: 2274

Re: SS at 65 or 70 with kids going to college

Tim18,

Reminder it doesn't have to be either either 66 or 70. You could choose an age in between. But do check and make sure the credits for delaying SS go up for each month delayed, not by years delayed.

Lar
by larmewar
Sun Oct 27, 2013 11:14 pm
 
Forum: Investing - Help with Personal Investments
Topic: SS at 65 or 70 with kids going to college
Replies: 33
Views: 2191

Chained CPI Question

I understand chained CPI accounting for consumer substitution in response to increased prices. But I don't understand what happens when consumers switch back if consumers switch back when the price of the original product comes down or for other reasons. Example: Price of beef increases 10% while ch...
by larmewar
Tue Oct 22, 2013 6:00 pm
 
Forum: Personal Finance (Not Investing)
Topic: Chained CPI Question
Replies: 3
Views: 519

Registration Change/Gift Question [Stock fund ownership]

I need to confirm whether the following is correct before I change registration on stock mutual funds in taxable accounts: Upon death, stock mutual fund with joint ownership w/spouse does not receive a step up in basis Change of registration from joint w/spouse to individual ownership is a gift and ...
by larmewar
Fri Oct 18, 2013 7:09 pm
 
Forum: Investing - Help with Personal Investments
Topic: Registration Change/Gift Question [Stock fund ownership]
Replies: 1
Views: 124

Re: General Muni Bond Fund vs. State Muni Bond w/ higher ER

I don't have a recommendation for short vs. intermediate term. However, note that VG Limited Term TE with a duration of 2.4 years is between Short and Intermediate Term TE and is more in line with the duration of taxable short term funds.

Lar
by larmewar
Sat Sep 28, 2013 3:15 pm
 
Forum: Investing - Help with Personal Investments
Topic: General Muni Bond Fund vs. State Muni Bond w/ higher ER
Replies: 4
Views: 514

Re: Vanguard - Track your transfer

I am also having the problem last two days. Message I am getting is OL-293B.

Lar
by larmewar
Fri Sep 27, 2013 7:12 pm
 
Forum: Investing - Help with Personal Investments
Topic: Vanguard - Track your transfer
Replies: 22
Views: 2281

Re: Long term care insurance

If a comparison against premiums for a competitively bid insurance might be helpful, check http://www.ltcfeds.com/. That is the site for the Federal Long Term Care Insurance Program for federal employees. LTC insurers bid on the contract to provide/administer LTC insurance.

Lar
by larmewar
Wed Sep 25, 2013 10:43 pm
 
Forum: Personal Finance (Not Investing)
Topic: Long term care insurance
Replies: 8
Views: 1055

Re: The market is on fire

Now who still thinks that valuations are not high because of the Fed? The real question is what to do about it? For buy/hold/rebalance/add new money investor it is a worst case scenario when everything is up and overpriced. :mrgreen: ) I started plotting portfolio value against time 6-7 years ago a...
by larmewar
Wed Sep 18, 2013 10:34 pm
 
Forum: Investing - Help with Personal Investments
Topic: The market is on fire
Replies: 127
Views: 12561

Re: Retirement investments and disability

Consider your current and projected after disability tax rates. If your marginal rate falls under certain disability, then TIRA contributions are favored over Roth for tax efficiency.

Las
by larmewar
Sat Sep 14, 2013 10:59 am
 
Forum: Investing - Help with Personal Investments
Topic: Retirement investments and disability
Replies: 6
Views: 579

Re: TLH option for Vanguard Intermediate-Term Tax-Exempt Fun

To stay with VG, Limited Term and Long Term can be barbelled to a weighted duration the same as Intermediate Term. If resulting Limited Term allocation doesn't meet the fund minimum, then Long Term by ratio of durations with balance to cash.

Lar
by larmewar
Mon Sep 09, 2013 4:29 pm
 
Forum: Investing - Help with Personal Investments
Topic: TLH option for Vanguard Intermediate-Term Tax-Exempt Fund?
Replies: 25
Views: 2032

Re: Munis vs taxable bonds

Grabiner touched on the real question, when a corporate fund in IRA and muni's in taxable are equal. With muni's in taxable, more equity funds must be held in the IRA, (eventually) changing capital gains into ordinary income (TIRA) or tax-exempt (Roth IRA). So all the differences need to be evaluate...
by larmewar
Sun Sep 08, 2013 1:27 pm
 
Forum: Investing - Theory, News & General
Topic: Munis vs taxable bonds
Replies: 16
Views: 1515

Re: Help with TLH a Muni Bond Fund?

Kevin,

Thanks for verifying FIFO, average cost and specified shares works to avoid the offset.

LAr
by larmewar
Wed Sep 04, 2013 10:44 pm
 
Forum: Investing - Help with Personal Investments
Topic: Help with TLH a Muni Bond Fund?
Replies: 10
Views: 846

Re: Help with TLH a Muni Bond Fund?

Can the offset be avoided, if not selling all shares? By using specified shares, average cost or FIFO in which older shares are sold?

Lar
by larmewar
Tue Sep 03, 2013 10:48 pm
 
Forum: Investing - Help with Personal Investments
Topic: Help with TLH a Muni Bond Fund?
Replies: 10
Views: 846

Re: TIPS might soon be worth buying again

Bloomberg shows the 10 year TIPS (real) yield at 0.68%. So we still need quite a yield increase/price drop to get to 2%. We may, however, be getting close to having a non-zero fixed rate for I-bonds. Historically, the I-bond ran about 1% below the 10 yr TIPS real yield until the I-bond yield hit 0%....
by larmewar
Mon Sep 02, 2013 1:42 pm
 
Forum: Investing - Help with Personal Investments
Topic: TIPS might soon be worth buying again
Replies: 9
Views: 1609

Re: Pay down mortgage or invest?

If your itemized deductions, excluding mortgage interest, are less than your standard deduction ($11,900 for married 2012), then you are not getting the full benefit of the mortgage interest deduction. So there may be a small income tax benefit from paying off the mortgage. Peace of mind of not havi...
by larmewar
Mon Sep 02, 2013 1:29 pm
 
Forum: Investing - Help with Personal Investments
Topic: Pay down mortgage or invest?
Replies: 15
Views: 2036

Re: Ever have Vanguard misclassify cost basis?

Did you enter as one transaction (as one sell order exchanging one fund for two funds) or as two separate exchanges? From experience, I know VG confirmation show two transactions when exchanging one fund for two.

Lar
by larmewar
Fri Aug 30, 2013 7:35 pm
 
Forum: Investing - Help with Personal Investments
Topic: Ever have Vanguard misclassify cost basis?
Replies: 7
Views: 814

Re: Why not a TR fund with munis?

Probably because Target Retirement funds are designed and marketed for retirement accounts.

Lar
by larmewar
Fri Aug 30, 2013 7:29 pm
 
Forum: Investing - Help with Personal Investments
Topic: Why not a TR fund with munis?
Replies: 6
Views: 474

Re: What to do with Vanguard Wellesley in this environment?

The OP seems to be mostly uncomfortable with his bond risk. The bond duration in Wellington and Wellesley are a little on the long side. One way to reduce duration modestly would be to exchange Wellesley for Wellington and a ST Bond fund (I use ST Investment Grade) or even CDs in a ratio that keeps ...
by larmewar
Sat Aug 24, 2013 10:05 pm
 
Forum: Investing - Help with Personal Investments
Topic: What to do with Vanguard Wellesley in this environment?
Replies: 35
Views: 4138

Re: TSP advice needed!

The dated L funds have a fairly steep ramp up in FI the 5 years prior to conversion to L Income. Plotting the FI component (G plus F fund allocation) of the L funds and a few combinations provided a visual of the glide slopes and helped with my decision. So I combined of Income, 2020 and 2030 for th...
by larmewar
Tue Aug 20, 2013 11:35 pm
 
Forum: Investing - Help with Personal Investments
Topic: TSP advice needed!
Replies: 18
Views: 1706

Re: VG Convertibles - % Equity Characteristics

Thanks, Paul. Charting isn't very definitive, but it clearly shows VCVSX is more equity like than I suspected - in line with Morningstar's estimate of VCVSX's equity upside and downside capture. So I'm taking minimal position and will add only when/if the markets misprice, like when convertibles wer...
by larmewar
Tue Aug 06, 2013 8:20 pm
 
Forum: Investing - Help with Personal Investments
Topic: VG Convertibles - % Equity Characteristics
Replies: 2
Views: 159

VG Convertibles - % Equity Characteristics

I'm looking at VG Convertible Securities (VCVSX) for a small portion of investment portfolio in an IRA. For asset allocation, holding would be considered part equity/part bond, but how much of each is am important question. The average maturity of VCVSX is 6.2 years. Recommendations, ideas and/or re...
by larmewar
Mon Aug 05, 2013 10:32 pm
 
Forum: Investing - Help with Personal Investments
Topic: VG Convertibles - % Equity Characteristics
Replies: 2
Views: 159

Re: If BF nav drops, will i get money back if held to avg du

ogd, Take VG ST Investment Grade as an example, with a duration of 2.4 yrs and YTM minus ER of 1.4%. So if rates increase 3%, fund goes down 7.2%, and you're saying after 2.4 yrs you're back to even. It actually takes a bit over 5 years. For individual bonds, it is correct that value returns to face...
by larmewar
Sun Jul 21, 2013 2:25 am
 
Forum: Investing - Help with Personal Investments
Topic: If BF nav drops, will i get money back if held to avg dur?
Replies: 16
Views: 1377

Re: If BF nav drops, will i get money back if held to avg du

It depends on the yield and how much the rate increases. My understanding of duration is multiplying the duration times the change in rates gives the drop in the bond or bond fund value. So take change in rates times duration, then dividing by the yield gives an estimate of how long it will take to ...
by larmewar
Fri Jul 19, 2013 7:51 pm
 
Forum: Investing - Help with Personal Investments
Topic: If BF nav drops, will i get money back if held to avg dur?
Replies: 16
Views: 1377

Re: Roth IRA conversion - Avoid 10% early withdrawal?

The 5 years starts with the first contribution (or conversion?). So you can string conversions out over several years without delaying ability to withdraw contributions/conversion amounts tax-free. If you will convert to multiple funds, make sure the Roth account numbers are the same. Some fund comp...
by larmewar
Thu Jul 18, 2013 10:13 pm
 
Forum: Investing - Help with Personal Investments
Topic: Roth IRA conversion - Avoid 10% early withdrawal?
Replies: 9
Views: 650

Re: Admiral Shares for Target Retirement and Life Strategy F

I would also like to see equivalent to admiral shares of TR funds. The TR funds ERs are just not competitive with admiral shares of the underlying funds or TSP L funds. Since the TR are invested in index funds, minimum should be in range of $25K to 50K.

Lar
by larmewar
Tue Jun 25, 2013 11:23 pm
 
Forum: Investing - Help with Personal Investments
Topic: Admiral Shares for Target Retirement and Life Strategy Funds
Replies: 17
Views: 2229

Re: Feedback on Vanguard Recommendation

Vanguard currently shows the Wellington and Wellesley bonds as intermediate term. The durations are longer than Total Bond Market and quality is mid. I don't remember the bond durations for either of these funds ever being in the 10+ years range of long term bond funds.

Lar
by larmewar
Tue Jun 25, 2013 11:04 pm
 
Forum: Investing - Help with Personal Investments
Topic: Feedback on Vanguard Recommendation
Replies: 8
Views: 1205

Re: Bond Fund Question

Put simply, it is a fairly big trade-off between interest rate risk (rates up, bond prices down) and credit risk for a some extra yield.

Lar
by larmewar
Wed Jun 05, 2013 10:08 pm
 
Forum: Investing - Help with Personal Investments
Topic: Bond Fund Question
Replies: 30
Views: 3390

Re: TSP G fund as only bond fund

I recall the case for intermediate term bonds being partly based on bonds frequently (not always) going up while stocks are going down and vice versa. The behavior was rooted in economic cycles with alternating expansion and recession. TSP G with a effective duration of zero, does not and can not pe...
by larmewar
Wed Jun 05, 2013 9:58 pm
 
Forum: Investing - Help with Personal Investments
Topic: TSP G fund as only bond fund
Replies: 57
Views: 4440
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