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Re: Taylor Larimore requesting your comments[Morningstar thr

Taylor wrote: "You will need to estimate your income tax bracket during the period of investment. This Morningstar Tool is designed to help you decide whether to use taxable or tax-exempt bond funds in your taxable account." http://screen.morningstar.com/BondCalc/BondCalculator_TaxEquivale...
by optimpessim
Sat Dec 28, 2013 10:36 pm
 
Forum: Investing - Help with Personal Investments
Topic: Taylor Larimore requesting your comments[Morningstar thread]
Replies: 26
Views: 5234

Re: Taylor Larimore requesting your comments[Morningstar thr

You said you are usually in the 15% Federal Tax Bracket. I'm surprised that you have decided to invest in a tax free bond fund. I wonder if the Morningstar calculator that Taylor pointed to indicated that that would be an appropriate fund for you. I am 77 and have similar issues to yours so I am int...
by optimpessim
Sat Dec 28, 2013 8:11 pm
 
Forum: Investing - Help with Personal Investments
Topic: Taylor Larimore requesting your comments[Morningstar thread]
Replies: 26
Views: 5234

Re: Bubble, Bubble, Toil and Trouble

They won't let me see page 2 of this article unless I register and name 5 stocks that I want to follow! :(
by optimpessim
Wed Nov 27, 2013 2:28 pm
 
Forum: Investing - Theory, News & General
Topic: Bubble, Bubble, Toil and Trouble
Replies: 4
Views: 1011

Re: Bond Allocation and Municipal Bonds

alanwbaker wrote: Total bond market index funds are dandy for taxable accounts too.


This statement surprises me. Under what circumstances would it be appropriate to invest in Total Bond in taxable?

Sally
by optimpessim
Mon Nov 18, 2013 3:10 pm
 
Forum: Investing - Help with Personal Investments
Topic: Bond Allocation and Municipal Bonds
Replies: 6
Views: 961

Re: Women and Money: What you need to know

I have attended several webcasts. They have been an hour long. The panelists discussing the topic are Vanguard staff. Most of the hour is spent answering questions submitted by those who registered to view the webcast. These are not in-depth or comprehensive presentations but I always have come away...
by optimpessim
Fri Oct 25, 2013 11:32 am
 
Forum: Investing - Theory, News & General
Topic: Women and Money: What you need to know
Replies: 4
Views: 1489

Re: what to invest during government default?

We have RMDs that need to be taken by the end of the year. My plan is to wait for a RBD (Really Bad Day) for stocks. That day I will sell fixed income in tax deferred and invest it in stock funds in taxable. Of course I will be counting on my infallible intuition to tell me which is the right day! :...
by optimpessim
Thu Oct 10, 2013 10:47 am
 
Forum: Investing - Help with Personal Investments
Topic: what to invest during government default?
Replies: 16
Views: 1867

Re: Will this be a good taxable account for me?

Do you think even the tax exempt bond funds will do worse than a basic CD? Best rate I can find is only about 1%. I am bumping this because I have the same question. VWIUX has a SEC yield of 2.65. It carries more risk but, if you accept that risk, isn't it likely to do at least as well as a 5 yr CD...
by optimpessim
Sun Sep 29, 2013 10:11 am
 
Forum: Investing - Help with Personal Investments
Topic: Will this be a good taxable account for me?
Replies: 5
Views: 768

Re: Bogle: Yield Seekers Shouldn't Go Out on a Limb

The effect of stock/bond asset allocation is very small except when stock allocation is too little. I doubt anyone could find an effect where selecting between a treasury dominated index fund and a corporate bond fund would have a meaningful effect on the long term fate of a diversified stock/bond ...
by optimpessim
Tue Jul 02, 2013 11:09 am
 
Forum: Investing - Theory, News & General
Topic: Bogle: Yield Seekers Shouldn't Go Out on a Limb
Replies: 30
Views: 3648

Re: Bogle: Yield Seekers Shouldn't Go Out on a Limb

I need a little help in understanding the following quote from the interview: I think a reasonable thing to do, for example, on the fixed-income side would be to have a corporate bond index fund in your portfolio, as well as a total bond market index fund in your portfolio. The total bond market in...
by optimpessim
Sat Jun 29, 2013 1:53 pm
 
Forum: Investing - Theory, News & General
Topic: Bogle: Yield Seekers Shouldn't Go Out on a Limb
Replies: 30
Views: 3648

Re: Bogle: Yield Seekers Shouldn't Go Out on a Limb

I need a little help in understanding the following quote from the interview: I think a reasonable thing to do, for example, on the fixed-income side would be to have a corporate bond index fund in your portfolio, as well as a total bond market index fund in your portfolio. The total bond market ind...
by optimpessim
Sat Jun 29, 2013 10:41 am
 
Forum: Investing - Theory, News & General
Topic: Bogle: Yield Seekers Shouldn't Go Out on a Limb
Replies: 30
Views: 3648

Re: Cognitive decline and financial matters

I'm 70 and most everything is already on some form of autopilot--annuity income, social security, automatic reinvestment of RMDs and all distributions. As with Taylor, estate plan is in place, covering all bases. Obviously, you can't anticipate everything, but if you have your eyes open you sure ca...
by optimpessim
Mon Apr 08, 2013 11:16 am
 
Forum: Personal Finance (Not Investing)
Topic: Cognitive decline and financial matters
Replies: 65
Views: 4286

Re: Asset allocation within bonds?

How about purchasing CDs with taxable funds and considering them a portion of my fixed income allocation? (I am thinking of PenFed 3y) Recently Taylor commented that CDs would be acceptable but I don't know if he was referring only to CDs in an IRA. I have the Vanguard Intermediate Muni Fund but am ...
by optimpessim
Tue Jan 15, 2013 2:29 pm
 
Forum: Investing - Theory, News & General
Topic: Asset allocation within bonds?
Replies: 27
Views: 3263

Re: Why VWITX is considered risky..

My biggest concern about VWITX is that it only has 17.4% AAA rated bonds. AAA rated bonds are supposedly less risky than lower rated ones.
---Sally
by optimpessim
Mon Aug 06, 2012 1:33 pm
 
Forum: Investing - Help with Personal Investments
Topic: Why VWITX is considered risky..
Replies: 8
Views: 2034

Re: I Bonds and other tax efficient alternatives

Mel-- I am retired and have been for 14 years. My tax rate now is 25% and I expect it will be that when I cash the I-Bonds. ( Unless there is a change in the tax structure and if that happens tax rates will probably go up, not down.) Also since I am 76 I don't expect to hold them for 30 yrs. My ques...
by optimpessim
Wed Aug 01, 2012 8:43 pm
 
Forum: Investing - Help with Personal Investments
Topic: I Bonds and other tax efficient alternatives
Replies: 23
Views: 2714

Re: I Bonds and other tax efficient alternatives

If that's the case, then compare the yield on munis vs 25% taxable and not your current rate to see if they make sense. Remember, though, that you'll be comparing a riskier muni with a risk-free Savings Bond, so keep that in mind, too. Somehow I am not understanding how you are suggesting I compare...
by optimpessim
Wed Aug 01, 2012 7:54 pm
 
Forum: Investing - Help with Personal Investments
Topic: I Bonds and other tax efficient alternatives
Replies: 23
Views: 2714

Re: Pick your municipal fund carefully

I found The Only Guide to a Winning Bond Strategy You'll Ever Need on my book shelf! I will now read the chapter on municipal bonds. I was not considering them at the time that I purchased the book nor did I have the knowledge base I needed to understand what I was reading. I am glad to be referred ...
by optimpessim
Tue Jul 31, 2012 10:26 pm
 
Forum: Investing - Theory, News & General
Topic: Pick your municipal fund carefully
Replies: 15
Views: 2811

Re: Pick your municipal fund carefully

----Another issue is that along the yield curve often taxables might provide higher returns than munis, even to the highest bracket investors at times. Obviously a muni fund is not going to buy CDs or government agencies when they are the best yielding (and no credit risk). But when building an ind...
by optimpessim
Tue Jul 31, 2012 3:02 pm
 
Forum: Investing - Theory, News & General
Topic: Pick your municipal fund carefully
Replies: 15
Views: 2811

Re: I Bonds and other tax efficient alternatives

Since I Bonds are tax-deferred for up to 30 years, they can be an excellent vehicle for tax shifting (moving taxes into the future when you're in a lower tax bracket). And, when redeemed, they're also free from state and local taxation. It appears that we will never be in a tax bracket lower than 2...
by optimpessim
Tue Jul 31, 2012 12:05 pm
 
Forum: Investing - Help with Personal Investments
Topic: I Bonds and other tax efficient alternatives
Replies: 23
Views: 2714

Re: Pick your municipal fund carefully

Of course I meant 17.14% AAA bonds in the Vanguard Fund versus 67.4 % AAA bonds in the Baird Fund.
by optimpessim
Mon Jul 30, 2012 10:06 pm
 
Forum: Investing - Theory, News & General
Topic: Pick your municipal fund carefully
Replies: 15
Views: 2811

Re: Pick your municipal fund carefully

Rick-- I am ready to invest in a Municipal Bond Fund and would prefer to stay with Vanguard but I am concerned that WVITX has only 17.14 AAA bonds. I don't know about the other funds you use in your comparison. I wonder why you are not considering the percentage of AAA bonds in your comparison. I am...
by optimpessim
Mon Jul 30, 2012 9:57 pm
 
Forum: Investing - Theory, News & General
Topic: Pick your municipal fund carefully
Replies: 15
Views: 2811

Re: Expected yield on Tips Auction

Why am I unable to find Larry Swedroe's January 2012 Update on Tips? The link that LBill posted above does not work for me.
--Sally
by optimpessim
Thu Jan 12, 2012 2:26 pm
 
Forum: Investing - Help with Personal Investments
Topic: Expected yield on Tips Auction
Replies: 31
Views: 2990

Re: 75 yr. olds' Portfolio: Please Help Review

I see this as a tax planning/estate planning problem as much as an asset allocation problem. If your estate is 'only' 7 figures, you will probably not have to pay any estate tax if you have a competently drawn will that sets up appropriate bypass trusts to capture both H&W's spousal exemptions....
by optimpessim
Wed Jan 11, 2012 4:35 pm
 
Forum: Investing - Help with Personal Investments
Topic: 75 yr. olds' Portfolio: Please Help Review
Replies: 14
Views: 1486

Re: 75 yr. olds' Portfolio: Please Help Review

letsgobobby wrote:What percent of your portfolio would you anticipate needing each year if the extra income were to go away?


About 2.5%, I think.
by optimpessim
Mon Jan 09, 2012 1:59 am
 
Forum: Investing - Help with Personal Investments
Topic: 75 yr. olds' Portfolio: Please Help Review
Replies: 14
Views: 1486

Re: 75 yr. olds' Portfolio: Please Help Review

As we age I realize that we have to remain ever aware of how we are doing in managing our own affairs. I think it is hard to recognize when oneself is declining in mental ability. Sure, it is normal to forget people's names or where you put something, but if someone is losing their mental abilities...
by optimpessim
Sun Jan 08, 2012 6:36 pm
 
Forum: Investing - Help with Personal Investments
Topic: 75 yr. olds' Portfolio: Please Help Review
Replies: 14
Views: 1486

Re: 75 yr. olds' Portfolio: Please Help Review

I simplified the OP's port by "selling" SCV, ICV, and EE bonds. Kept the TIP ladder. I wasn't clear if the nominal intermediate bond funds were all Intermediate Treasuries or some other intermediate bond fund, so I make the assumption the are Intermediate Treasuries. I would pick either T...
by optimpessim
Sun Jan 08, 2012 6:07 pm
 
Forum: Investing - Help with Personal Investments
Topic: 75 yr. olds' Portfolio: Please Help Review
Replies: 14
Views: 1486

Re: 75 yr. olds' Portfolio: Please Help Review

Do you have any capital gains to worry about in the taxable space. I'm thinking you might want simplify by selling the small cap value and mid cap value, and just go with TSM, but has an impact on this decision. Yes. A lot. Expect to just hold the value funds. Probably those funds will go to heirs.
by optimpessim
Sun Jan 08, 2012 5:36 pm
 
Forum: Investing - Help with Personal Investments
Topic: 75 yr. olds' Portfolio: Please Help Review
Replies: 14
Views: 1486

Re: 75 yr. olds' Portfolio: Please Help Review

YNDAL--
Thanks so much for your quick and comprehensive response. I will "sleep on" your suggestions tonight and discuss them with my husband tomorrow.
by optimpessim
Sun Jan 08, 2012 12:12 am
 
Forum: Investing - Help with Personal Investments
Topic: 75 yr. olds' Portfolio: Please Help Review
Replies: 14
Views: 1486

75 yr. olds' Portfolio: Please Help Review

Intro : In 2001 after our former financial advisor retired we put together this portfolio with Boglehead help. Basically it is unchanged. As we age I realize that we have to remain ever aware of how we are doing in managing our own affairs. I think so far so good but, especially in this economic cl...
by optimpessim
Sat Jan 07, 2012 3:40 pm
 
Forum: Investing - Help with Personal Investments
Topic: 75 yr. olds' Portfolio: Please Help Review
Replies: 14
Views: 1486

My wife's parents have long term care insurance, but the company is not paying. Maybe my wife can get them to pay, maybe not, but her 89 year old demented father would have not chance of getting any payment on his own. I am 61 and will not get long term care insurance. We all know how hard it can b...
by optimpessim
Tue Oct 11, 2011 9:26 am
 
Forum: Personal Finance (Not Investing)
Topic: Long-Term Care
Replies: 140
Views: 7401

I have an individual LTC policy issued by CNA in 1996. It is a grandfathered tax qualified policy. This stock company was highly rated at the time. They stopped selling LTCi in 2005 or 2006. I don't know who is administering it now. My policy has an elimination period of 180days. I have no intention...
by optimpessim
Fri Jul 22, 2011 10:54 am
 
Forum: Personal Finance (Not Investing)
Topic: long term care insurance
Replies: 107
Views: 12769

Thank you to everyone who replied so quickly and thoughtfully to my post. I was finding myself feeling unable to proceed with this important process and hesitant to directly bring up my concerns with the lawyer. I think I can do that now.

---Sally
by optimpessim
Sun May 15, 2011 9:37 pm
 
Forum: Personal Finance (Not Investing)
Topic: Attorney Fee - Estate Planning
Replies: 20
Views: 2939

Attorney Fee - Estate Planning

Our Wills and related documents need to be updated. We had an initial session with a lawyer who estimated the cost at $1500 to $2000. He said given the info we gave him he thought the work would take no more than 3-4 hours and that his hourly fee is $400. Although 1500 - 2000 for the job seems reaso...
by optimpessim
Sun May 15, 2011 2:36 pm
 
Forum: Personal Finance (Not Investing)
Topic: Attorney Fee - Estate Planning
Replies: 20
Views: 2939

Sorry Market Timer - of course I meant to thank you. I'm sure you are a value thinker also! I wish I could refer to former posts while typing a reply. Also, thanks to whoever it is who pointed out my error. My short term memory never was great.
by optimpessim
Tue Mar 15, 2011 7:45 am
 
Forum: Investing - Help with Personal Investments
Topic: How do you categorize EE Bonds?
Replies: 17
Views: 2468

Thanks to value thinker pointing me in the right direction I finally found confirmation on the Treasury Site of the 17 yr and 20 yr terms. I see that there is incentive to keep the bonds at least until their Original Maturity Dates unless of course some better investment opportunity presents itself....
by optimpessim
Mon Mar 14, 2011 10:03 pm
 
Forum: Investing - Help with Personal Investments
Topic: How do you categorize EE Bonds?
Replies: 17
Views: 2468

OK. My EE Bonds have now been relegated to the cash category. I am no longer fantasizing that they will double in 20 yrs. (Though I am befuddled by the fact that The Bogleheads' Guide to Investing which I just consulted seems to say on p.28 that they will.) At least it seems clear that I will not ha...
by optimpessim
Sun Mar 13, 2011 11:16 pm
 
Forum: Investing - Help with Personal Investments
Topic: How do you categorize EE Bonds?
Replies: 17
Views: 2468

Thank you all. Since we already have more cash than I think we should have (mm and checking accounts) I would prefer to put the EE-Bonds in the category of intermediate bonds. I don't believe we will be cashing them in, however, I was not thinking when we bought them how old we would be when they ma...
by optimpessim
Sun Mar 13, 2011 8:14 pm
 
Forum: Investing - Help with Personal Investments
Topic: How do you categorize EE Bonds?
Replies: 17
Views: 2468

How do you categorize EE Bonds?

In our Asset Allocation we have nominal bonds (short and intermediate term) and inflation protected investments (I-Bonds and TIPS). We also have EE-Bonds (pre 2005). I don't know how to think about the place of the EE-Bonds in our AA. Can you help?

--Sally
by optimpessim
Sun Mar 13, 2011 1:56 pm
 
Forum: Investing - Help with Personal Investments
Topic: How do you categorize EE Bonds?
Replies: 17
Views: 2468

We have had CNA LTCi for many years. Ours are individual policies not company group. I am not so concerned that premiums will rise as I am that the company will not pay claims as promised. I searched for reviews of CNA online. I went to a site called Free Advise. I have no idea how reliable they are...
by optimpessim
Fri Nov 26, 2010 4:25 pm
 
Forum: Personal Finance (Not Investing)
Topic: MetLife stops selling Long Term Care Insurance
Replies: 69
Views: 12832

Staying the Course

Thank you all! I think I will stick with the fund. Your thoughts were helpful. At this point we are not spending from our Roths, so as Sewall commented, I should not be so concerned about the NAV. It is at least psychologically helpful to be told that there have been no bond defaults in the fund thi...
by optimpessim
Tue Dec 16, 2008 4:58 pm
 
Forum: Investing - Help with Personal Investments
Topic: Ditch Investment Grade Bond Fund in Roth?
Replies: 8
Views: 2109

Ditch Investment Grade Bond Fund in Roth?

I have the Vanguard Short Term Investment Grade Bond Fund in my Roth. I am considering exchanging all of it for the Vanguard Short Term Bond Index Fund. Clearly market timing but not a big timing move. Is there some reason I should not do this? I would be locking in the loss, of course. I am 72 so I...
by optimpessim
Mon Dec 15, 2008 11:00 am
 
Forum: Investing - Help with Personal Investments
Topic: Ditch Investment Grade Bond Fund in Roth?
Replies: 8
Views: 2109

Taylor Larimore wrote: * We gave power of attorney to a responsible son. (This requires special documents from Vanguard.} Our son monitors our portfolio until the time he will take over as executor. (I am new to this forum so I hope I am doing this right. I did not see instructions on how to post.) ...
by optimpessim
Sun Nov 25, 2007 11:16 pm
 
Forum: Investing - Theory, News & General
Topic: Planning for being too old to make good financial decissions
Replies: 32
Views: 7362

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