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Re: Investing options for my child

You don't want to put regular bonds into a taxable account if you can help it, especially if you are in a high tax bracket. Use tax exempt bonds instead. Hi, can you suggest any tax exempt bonds? Other than does this this allocation look ok? Thank you. Vanguard Intermediate Tax Exempt is a popular ...
by rkhusky
Thu Nov 27, 2014 9:09 pm
 
Forum: Investing - Help with Personal Investments
Topic: Investing options for my child
Replies: 14
Views: 1230

Re: Current Status of Child Tax Credit

That clears things up. Thanks.
by rkhusky
Thu Nov 27, 2014 9:35 am
 
Forum: Personal Finance (Not Investing)
Topic: Current Status of Child Tax Credit
Replies: 5
Views: 489

Re: Current Status of Child Tax Credit

This site also says that the Child Tax Credit was made permanent: http://www.taxpolicycenter.org/taxtopics/American-Taxpayer-Relief-Act.cfm I received a PM that indicated that perhaps the amount of $1000 was made permanent, but that an earnings threshold decrease from $10K to $3K had a sunset of 201...
by rkhusky
Thu Nov 27, 2014 8:58 am
 
Forum: Personal Finance (Not Investing)
Topic: Current Status of Child Tax Credit
Replies: 5
Views: 489

Re: Investing options for my child

Thank you everyone for your inputs. I did a portfolio recommendation on vanguard and it gave me the following allocation. 42% stock 18% international stock 32% bond 8% international bond This is their Vanguard LifeStrategy Moderate Growth Fund (VSMGX). Any thoughts on this? Anyone has experience wi...
by rkhusky
Thu Nov 27, 2014 7:16 am
 
Forum: Investing - Help with Personal Investments
Topic: Investing options for my child
Replies: 14
Views: 1230

Current Status of Child Tax Credit

I am seeing stories like this: http://www.npr.org/blogs/itsallpolitics/2014/11/26/366843054/veto-threat-puts-tax-break-package-back-at-square-one which have quotes like this: At issue for President Obama and many congressional Democrats are the Earned Income Tax Credit for lower-income workers and t...
by rkhusky
Thu Nov 27, 2014 7:02 am
 
Forum: Personal Finance (Not Investing)
Topic: Current Status of Child Tax Credit
Replies: 5
Views: 489

Re: TSP Strategy for Contributing Participants Age 50 or Ove

margered wrote:My agency normally would get paid 1/1/15, but it is a holiday and the calendar I looked at does not say payments will be made 12/31/15. Any insights?

Usually if your payday hits a holiday you get the check the day before.
by rkhusky
Wed Nov 26, 2014 4:50 pm
 
Forum: Personal Finance (Not Investing)
Topic: TSP Strategy for Contributing Participants Age 50 or Over
Replies: 5
Views: 798

Re: Roth versus Traditional Debate

This wiki page has a nice table that compares pre- and post-tax accounts with a taxable account: http://www.bogleheads.org/wiki/Non-deductible_traditional_IRA If you set up a similar spreadsheet with your specific rates, you can easily tell which will do better for you, assuming your predictions abo...
by rkhusky
Wed Nov 26, 2014 2:11 pm
 
Forum: Investing - Theory, News & General
Topic: Roth versus Traditional Debate
Replies: 17
Views: 1135

Re: What 401k does to your IRA - Roth IRA contribution limit

You can contribute up to $23,000 in the 401K for 2014. In 2015, the limit will be $24,000. The decision to invest in 401K vs. IRA depends on what investments and their expenses you have in the 401K. You are not similarly constrained in the IRA. The decision to invest in deductible IRA (or 401K) or R...
by rkhusky
Wed Nov 26, 2014 8:32 am
 
Forum: Personal Finance (Not Investing)
Topic: What 401k does to your IRA - Roth IRA contribution limit
Replies: 14
Views: 1335

Re: How to transfer money from bank to vanguard automaticall

My bank does automatic bill pay, which is a push of a specific amount. They don't have more complex options like pushing everything over a given dollar amount, which is what the OP seems to want. The bank still has to get an order from whomever you want to pay. The electric company sends them the b...
by rkhusky
Tue Nov 25, 2014 4:49 pm
 
Forum: Investing - Help with Personal Investments
Topic: How to transfer money from bank to vanguard automatically?
Replies: 19
Views: 2478

Re: Ruminations on Timing with PE10

tadamsmar wrote:The 0.66% figure is biased since the PE10 timing trigger optimized for the dataset used to measure it. I have never seen a study where a PE10 timing procedure was tested outside of the sample used to optimize it's parameter(s).

That would seem rather worthless then.
by rkhusky
Tue Nov 25, 2014 3:25 pm
 
Forum: Investing - Theory, News & General
Topic: Ruminations on Timing with PE10
Replies: 3
Views: 419

Re: Avoiding lifestyle creep

If you are worried about the kids not going to college, only put enough in the 529 to fund a couple years and put the rest in a taxable account. If one doesn't go, you can transfer their balance to one of the other accounts. Or you can transfer to grandchildren. Or go back to school yourself when yo...
by rkhusky
Tue Nov 25, 2014 3:19 pm
 
Forum: Personal Finance (Not Investing)
Topic: Avoiding lifestyle creep
Replies: 21
Views: 2807

Re: Crazy question about Roth IRA transfers

So, marry someone, contribute the funds, then divorce with the stipulation that they get a specified part of the IRA.
by rkhusky
Tue Nov 25, 2014 2:56 pm
 
Forum: Investing - Help with Personal Investments
Topic: Crazy question about Roth IRA transfers
Replies: 8
Views: 593

Re: How to transfer money from bank to vanguard automaticall

That is my point. Everyone keeps telling this person it is easy to pull, that is not what they want. They want a push. I'm saying you are going to have a hard time finding a bank willing to do a push. My bank does automatic bill pay, which is a push of a specific amount. They don't have more comple...
by rkhusky
Tue Nov 25, 2014 2:06 pm
 
Forum: Investing - Help with Personal Investments
Topic: How to transfer money from bank to vanguard automatically?
Replies: 19
Views: 2478

Re: Definition of "have a retirement plan at work"

If I'm reading the IRS rules correctly, the $6500 IRA limit (for over-50 folks) has no minimum compensation, nor does it scale with compensation. So literally any amount in Box 1 and you can put $6500 in an IRA, right? No. Your IRA contribution cannot be more than your compensation. If you were age...
by rkhusky
Tue Nov 25, 2014 1:50 pm
 
Forum: Investing - Help with Personal Investments
Topic: Definition of "have a retirement plan at work"
Replies: 12
Views: 1275

Re: Vanguard offers login security code

rhlhj wrote:I signed up for the service yesterday and logged in from a computer at work. Since then, I've received about 10 additional codes that did not seem to be initiated from a login attempt.

Has anyone else had this problem?


Early adopter woes - having to deal with all the bug fixes for a new system.
by rkhusky
Tue Nov 25, 2014 12:22 pm
 
Forum: Personal Consumer Issues
Topic: Vanguard offers login security code
Replies: 75
Views: 6885

Re: Definition of "have a retirement plan at work"

Its a little frustrating, since I feel I meet the "spirit" of this rule, but am caught in the fine print. Oh well, missing roughly $1800 savings from a $6500 deduction isn't the end of the world. Why not put it into a Roth IRA? Maybe it wouldn't be as good as a tIRA, but better than nothi...
by rkhusky
Tue Nov 25, 2014 8:38 am
 
Forum: Investing - Help with Personal Investments
Topic: Definition of "have a retirement plan at work"
Replies: 12
Views: 1275

Re: What would be the investing strategy for a coming crash?

For how many years have people being predicting that bond funds would see significant declines?
by rkhusky
Tue Nov 25, 2014 7:51 am
 
Forum: Investing - Theory, News & General
Topic: What would be the investing strategy for a coming crash?
Replies: 81
Views: 6664

Re: Investing options for my child

Mutual funds in a taxable account - Total Stock Market + Int. Tax Exempt Bond.
by rkhusky
Mon Nov 24, 2014 4:14 pm
 
Forum: Investing - Help with Personal Investments
Topic: Investing options for my child
Replies: 14
Views: 1230

Re: I think I'm missing something about the backdoor roth

You have a tIRA account with $30K that is deductible (pre-tax), which you intend to roll over to a 401K, and you have a tIRA with $5500 that is not deductible (after-tax), which you intend to roll over to a Roth IRA?
by rkhusky
Mon Nov 24, 2014 10:54 am
 
Forum: Investing - Help with Personal Investments
Topic: I think I'm missing something about the backdoor roth
Replies: 21
Views: 1592

Re: Small cap value premium

I agree there is no guarantee but the odds are in your favor and that is all you can ask for. One thing I look for lately has been to ensure that if I take more risk I at least have better odds of a higher return. I don't think anyone knows what the odds are, since stock market statistics are non-s...
by rkhusky
Mon Nov 24, 2014 8:49 am
 
Forum: Investing - Theory, News & General
Topic: Small cap value premium
Replies: 140
Views: 9273

Re: Can't quite max out TSP contribution--what to do?

If the shortfall is not unbridgeable, you might consider borrowing the amount needed to close it. As with any use of "leverage," there is risk to that, but depending on all the circumstances, it might be beneficial in the long run. Run the numbers, assess the probabilities, and do what se...
by rkhusky
Mon Nov 24, 2014 8:17 am
 
Forum: Investing - Help with Personal Investments
Topic: Can't quite max out TSP contribution--what to do?
Replies: 8
Views: 769

Re: Small cap value premium

However, if you hold stocks folks don't like and that are illiquid (SCV being a collection of such companies) you should expect to be rewarded with above S&P 500 returns as you are taking on comfort and illiquity risk that others want to avoid by buying the S&P 500. Just because you take mo...
by rkhusky
Mon Nov 24, 2014 8:01 am
 
Forum: Investing - Theory, News & General
Topic: Small cap value premium
Replies: 140
Views: 9273

Re: Past and Future returns

Taylor Larimore wrote:This table includes the past 15 year asset-class returns for the period ending 6-30-00:

This is obviously a cherry-picked end date, but it still shows that there can be long periods of under-performance for a given segment of the market.
by rkhusky
Fri Nov 21, 2014 5:54 pm
 
Forum: Investing - Theory, News & General
Topic: Small cap value premium
Replies: 140
Views: 9273

Re: What is a VIT?

The description sure gives them a lot of wiggle room in what to invest in. Perhaps they don't want to pay S&P for the use of their index. The investment seeks to provide investment results which approximate the price and yield performance of publicly traded common stocks in the aggregate. - but ...
by rkhusky
Fri Nov 21, 2014 4:02 pm
 
Forum: Investing - Theory, News & General
Topic: What is a VIT?
Replies: 5
Views: 598

Re: The mathematics of recouping loss

gatorking wrote:The graph doesn't care about compounding. It takes 62 consecutive 1% declines to get from 100 to 50 (50% loss) and 62 consecutive 1% increases to get from 50 to 100 (100% increase).


I get 70 1% increases to get to 2 and 69 1% decreases to get to 0.5.
by rkhusky
Fri Nov 21, 2014 3:46 pm
 
Forum: Investing - Theory, News & General
Topic: The mathematics of recouping loss
Replies: 11
Views: 1252

Re: Send text messages from PC to Cell Phone

hicabob wrote:To send a text to a verizon cellphone from a PC I send email to nnnnnnnnnn@vzwpix.com. (n's are the phone digits) . I believe all other carriers have similar


This allows you to send pictures as well as text.
by rkhusky
Fri Nov 21, 2014 1:36 pm
 
Forum: Personal Consumer Issues
Topic: Send text messages from PC to Cell Phone
Replies: 15
Views: 1463

Re: Does investing in a 401k actually save any money?

This wiki page has a year-by-year numerical table that compares taxable vs. Roth, Deductible IRA, and Non-deductible IRA. A 401K would be like the Deductible IRA. http://www.bogleheads.org/wiki/Non-deductible_traditional_IRA It should lay to rest the "converting cap gains into income" fear...
by rkhusky
Fri Nov 21, 2014 11:47 am
 
Forum: Investing - Theory, News & General
Topic: Does investing in a 401k actually save any money?
Replies: 62
Views: 5838

Re: Small cap value premium

I don't think it is a huge leap to accept that small cap stocks (in aggregate) tend to be riskier than large cap stocks (in aggregate) because of the underlying risks associated with small businesses versus large established businesses. If one doesn't accept this as at least likely to be true, he o...
by rkhusky
Fri Nov 21, 2014 10:11 am
 
Forum: Investing - Theory, News & General
Topic: Small cap value premium
Replies: 140
Views: 9273

Re: Small cap value premium

If one uses a relative definition for value (e.g. 50% of stocks with lowest P/E (or any other value metric)), then by definition no stocks will be over-valued. Wait, stop ... not so fast. I can't agree. Some industries by nature tend to have a lower P/E. Take for instance two banks (A and B) that b...
by rkhusky
Fri Nov 21, 2014 10:02 am
 
Forum: Investing - Theory, News & General
Topic: Small cap value premium
Replies: 140
Views: 9273

Re: Estimating expected stock returns and the optimal portfo

..., the optimal allocation between stocks and bonds should shift as the expected returns on stocks changes. How accurate were the projections for expected stock return from 20-30 years ago? And what is the standard deviation of current predictions for the next 20-30 years? If the accuracy is not g...
by rkhusky
Fri Nov 21, 2014 8:26 am
 
Forum: Investing - Theory, News & General
Topic: Estimating expected stock returns and the optimal portfolio
Replies: 7
Views: 1569

Re: Can Non-Tax Filers Contribute to IRA?

It might be worthwhile to fill out the tax form and keep it on file, even if you don't send it to the IRS.

cdm770234 wrote: I know there are no tax benefits, ...

But there is a tax benefit - with a Roth IRA, you can withdraw the contributions and earnings tax free after age 59 1/2.
by rkhusky
Fri Nov 21, 2014 8:13 am
 
Forum: Investing - Help with Personal Investments
Topic: Can Non-Tax Filers Contribute to IRA?
Replies: 12
Views: 1247

Re: Small cap value premium

There's a problem in the way people define active styles as "growth" and "value". Being in a "value" style doesn't mean it's not over-valued. It just means it fits certain metric and style criteria. A company can have a low PE and still be over-priced. If a company isn...
by rkhusky
Fri Nov 21, 2014 7:50 am
 
Forum: Investing - Theory, News & General
Topic: Small cap value premium
Replies: 140
Views: 9273

Re: Moving part of IRA from stocks to bond fund

I was wondering when a good time is to move some of my IRA from total stock market fund to total bond fund to rebalance my portfolio? Should I wait until after quarterly dividends are added? Now is a good time. Quarterly dividends don't matter - you have the same total balance before and after in a...
by rkhusky
Thu Nov 20, 2014 4:34 pm
 
Forum: Investing - Help with Personal Investments
Topic: Moving part of IRA from stocks to bond fund
Replies: 1
Views: 334

Re: Portfolio advice for new investor, large lump sum

Looks fine to me. Some people put a premium on simplicity, others like to tinker or try something different. If you expect the market to generally go up, lump sum is better than DCA, if you have the lump - don't wait to accumulate the lump. Your AA of 40/40/20 is within standard allocations, althoug...
by rkhusky
Thu Nov 20, 2014 2:02 pm
 
Forum: Investing - Help with Personal Investments
Topic: Portfolio advice for new investor, large lump sum
Replies: 14
Views: 1553

Re: What temperature for house for long winter absence?

Tropical houseplants can be affected if the house is too cold.
by rkhusky
Thu Nov 20, 2014 1:27 pm
 
Forum: Personal Finance (Not Investing)
Topic: What temperature for house for long winter absence?
Replies: 31
Views: 2890

Re: Small cap value premium

In regards to the behavior theory : I would argue that as of late there's been a lot of publicity towards SCV tilting and thus they may be OVER valued if anything. Small Cap Value cannot be over-valued, by definition (i.e. if the price rose high enough to make the stock over-valued, then it wouldn'...
by rkhusky
Thu Nov 20, 2014 11:57 am
 
Forum: Investing - Theory, News & General
Topic: Small cap value premium
Replies: 140
Views: 9273

Re: Small cap value premium

In regards to the behavior theory : I would argue that as of late there's been a lot of publicity towards SCV tilting and thus they may be OVER valued if anything. Small Cap Value cannot be over-valued, by definition (i.e. if the price rose high enough to make the stock over-valued, then it wouldn'...
by rkhusky
Thu Nov 20, 2014 7:46 am
 
Forum: Investing - Theory, News & General
Topic: Small cap value premium
Replies: 140
Views: 9273

Re: Adding taxable investments to retirement portfolio

Just for completeness, what is the lowest cost option for total international in your 401K and its ER?
by rkhusky
Wed Nov 19, 2014 2:23 pm
 
Forum: Investing - Help with Personal Investments
Topic: Adding taxable investments to retirement portfolio
Replies: 12
Views: 1063

Re: Overwhelmed with Asset Allocation

So I am now thinking: Vanguard 500 (VFINX) 35% Small Cap (NAESX) 10% REIT (VGSIX) 5% Total Int (VGTSX) 20% Total Bond (VBMFX) 30% VG's Extended Market (VEXMX) is the completion index for the S&P 500 (i.e. VFINX + VEXMX = TSM). With NAESX, you would be missing some stocks (VEXMX has 3291 stocks ...
by rkhusky
Wed Nov 19, 2014 1:12 pm
 
Forum: Investing - Help with Personal Investments
Topic: Overwhelmed with Asset Allocation
Replies: 20
Views: 2271

Re: Adding taxable investments to retirement portfolio

I thought TISM was more tax-efficient than TSM, per this page: http://www.bogleheads.org/wiki/Principles_of_tax-efficient_fund_placement If all else is equal, international funds have a small tax advantage over US funds, because they are eligible for the foreign tax credit. You also need to conside...
by rkhusky
Wed Nov 19, 2014 12:54 pm
 
Forum: Investing - Help with Personal Investments
Topic: Adding taxable investments to retirement portfolio
Replies: 12
Views: 1063

Re: Overwhelmed with Asset Allocation

How about a Roth IRA for her? Roll the old 403b into the new 403b. Given that there isn't any really good bond or int'l funds in your new 403b, I see two options: 1) Total Stock Market in the 403B. Total Stock Market, Total Int'l and Total Bond in Roth IRA's to get to your AA (50% US, 20% Int'l, 30%...
by rkhusky
Wed Nov 19, 2014 8:11 am
 
Forum: Investing - Help with Personal Investments
Topic: Overwhelmed with Asset Allocation
Replies: 20
Views: 2271

Re: Roth vs Traditional 401k - What percentages would you do

If you will be in a substantially lower bracket in retirement, have no pension, and plan to wait until 70 to take SS, I would recommend 100% Traditional, especially since you are maxing Roth IRA. I would also take the tax savings from using the Traditional 401K and put it into a taxable account, oth...
by rkhusky
Tue Nov 18, 2014 1:25 pm
 
Forum: Investing - Help with Personal Investments
Topic: Roth vs Traditional 401k - What percentages would you do?
Replies: 11
Views: 989

Re: Regression Analysis and Asset Allocation

Put a few funds into this tool and see what you get:

http://www.portfoliovisualizer.com/
by rkhusky
Tue Nov 18, 2014 12:15 pm
 
Forum: Investing - Theory, News & General
Topic: Regression Analysis and Asset Allocation
Replies: 14
Views: 1508

Re: Should you use a 401k if you'll def. be in a higher brac

This wiki page has a comparison between taxable and tax-advantaged accounts. It would be interesting to see under what sets of parameters that investing in taxable would be better.

http://www.bogleheads.org/wiki/Non-dedu ... tional_IRA
by rkhusky
Tue Nov 18, 2014 10:12 am
 
Forum: Investing - Theory, News & General
Topic: Should you use a 401k if you'll def. be in a higher bracket?
Replies: 18
Views: 2330

Re: Basic investment question

Do you have a Roth IRA? You can withdraw contributions in an emergency.

You can do the 3-fund portfolio in taxable (Total Stock, Total Int'l, Tax Exempt Bond). Or just choose one, depending on what you have in your other accounts.
by rkhusky
Tue Nov 18, 2014 10:00 am
 
Forum: Investing - Help with Personal Investments
Topic: Basic investment question
Replies: 17
Views: 1408

Re: Heads up best reward credit card I've seen.

Penfed Cash Rewards gives 5% off gas and it is credited every month, rather than having to redeem points.
by rkhusky
Tue Nov 18, 2014 9:54 am
 
Forum: Personal Finance (Not Investing)
Topic: Heads up one of the better reward credit card I've seen.
Replies: 54
Views: 6286

Re: Basic Help on Fund Distributions

See this wiki article for discussion on buying/selling in a taxable account with respect to distribution dates:
http://www.bogleheads.org/wiki/Timing_o ... duce_taxes
by rkhusky
Tue Nov 18, 2014 8:27 am
 
Forum: Investing - Help with Personal Investments
Topic: Basic Help on Fund Distributions
Replies: 8
Views: 297

Re: Basic Help on Fund Distributions

When stock funds pay out cap gains, the share price goes down, such that you have the same dollar amount before and after the distribution. Dividends from bond funds are more like the interest on a savings account. Since Wellesley is about 40/60 stocks/bonds, the distributions are a bit of each. (ed...
by rkhusky
Tue Nov 18, 2014 8:05 am
 
Forum: Investing - Help with Personal Investments
Topic: Basic Help on Fund Distributions
Replies: 8
Views: 297

Re: VWAHX

The portfolio page for Vanguard High-Yield Tax-Exempt Fund Investor lists 16.9% for the percentage of the fund's income subject to the AMT.
by rkhusky
Mon Nov 17, 2014 7:01 pm
 
Forum: Investing - Theory, News & General
Topic: VWAHX [Vanguard High-Yield Tax-Exempt Fund]
Replies: 6
Views: 906
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