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Re: Speculation on I Bond fixed rate for May 1st

So the speculation back in November 2013 when the US Treasury shockingly set the I-Bond fixed rate at 0.20% while also setting the EE bond rate at 0.10% was that this was a way for the Treasury to influence folks into buying the I-bond over the EE bond with it's guarantee to double in 20 years. This...
by stevewolfe
Sat Apr 19, 2014 6:09 pm
 
Forum: Investing - Theory, News & General
Topic: Speculation on I Bond fixed rate for May 1st
Replies: 31
Views: 2986

Re: Vanguard Total International (VTSAX) - Taxable Account

sscritic wrote:These discussions hurt my brain; that's why I have both Totals in my taxable account.


This. We do the same.
by stevewolfe
Fri Apr 18, 2014 9:06 am
 
Forum: Investing - Help with Personal Investments
Topic: Vanguard Total International (VTSAX) - Taxable Account
Replies: 24
Views: 2080

Re: Converting i-bonds to electronic

Since the site was unhelpful I'm curious why are you thinking you'd like to continue with the electronic conversion vs. keeping them in a safe deposit box, etc?
by stevewolfe
Tue Apr 15, 2014 7:05 pm
 
Forum: Investing - Help with Personal Investments
Topic: Converting i-bonds to electronic
Replies: 7
Views: 625

Re: 5 yr TIPs auction announced 4/10- any takers?

[OT comments removed by admin LadyGeek]


Response to OT comments removed by admin LadyGeek
by stevewolfe
Sat Apr 12, 2014 9:18 pm
 
Forum: Investing - Theory, News & General
Topic: 5 yr TIPs auction announced 4/10- any takers?
Replies: 36
Views: 3054

Re: Stock markets in free fall?

So what 20 year old do you know who is bond heavy? I was a 20 something that was bond heavy (we've been between 30% stocks and 40% stocks since we started investing 16 years ago). I used Vanguard's Asset Allocation Models and historical worst one year performance to arrive at my stock allocation ba...
by stevewolfe
Sat Apr 12, 2014 7:07 pm
 
Forum: Investing - Theory, News & General
Topic: Stock markets in free fall?
Replies: 92
Views: 6521

Re: Stock markets in free fall?

Lets look at current bond facts. The current yield on BND is 2.2% and the BND portfolio has a duration of 5 years. The current spread between the 5-yr treasury and the 5-yr TIPS is 2.2% (the current best estimate of inflation). So on a pre-tax basis you are getting 0% real yield. On an after tax ba...
by stevewolfe
Sat Apr 12, 2014 8:21 am
 
Forum: Investing - Theory, News & General
Topic: Stock markets in free fall?
Replies: 92
Views: 6521

Re: Why pay off your house?

Isn't housing a life-long cost? IF you factor it as a constant cost into retirement, do you need to rush to pay it off now? If yes, what about the loss of a tax deduction? Don't you want your money more liquid than dependent on the real estate market? Confused..... Why should I factor housing as a ...
by stevewolfe
Sat Apr 05, 2014 2:42 pm
 
Forum: Investing - Help with Personal Investments
Topic: Why pay off your house?
Replies: 119
Views: 8499

Re: Stable Value Funds

See if your plan can provide the market value / book value ratio for the fund. This will give you an idea of whether or not the bonds that are held are currently being accounted for as a value that is less than or greater than their current market value if a catastrophic event where to occur and the...
by stevewolfe
Sat Apr 05, 2014 11:05 am
 
Forum: Investing - Theory, News & General
Topic: Stable Value Funds
Replies: 12
Views: 850

Re: Dave Ramsey on Bonds

How correct is Dave when it comes to bonds. https://www.youtube.com/watch?v=iRtFDvGORQk When he said "he wasn't investing in savings bonds, but I do recommend cashing those in at all times" I stopped listening to the video. He's entitled to his opinion, but he's not entitled to me sufferi...
by stevewolfe
Sat Mar 29, 2014 12:54 pm
 
Forum: Investing - Theory, News & General
Topic: Dave Ramsey on Bonds
Replies: 17
Views: 3485

Re: I bonds: mathematics for when to cash in for higher rate

On the other hand I-bonds only allow you to defer the tax on the earnings from your initial after tax investment. The earnings are still taxed. I guess this is splitting a hair. In the post above I mentioned I planned to use these I-Bonds in early retirement. Presently, I can redeem enough in I-bon...
by stevewolfe
Sun Mar 23, 2014 8:08 pm
 
Forum: Investing - Theory, News & General
Topic: I bonds: mathematics for when to cash in for higher rate
Replies: 13
Views: 2015

Re: I bonds: mathematics for when to cash in for higher rate

I think a lot of people overestimate the tax advantages of I-Bonds at current yields. Assume a $10,000 investment, 2% inflation rate, a 40% tax rate during the full 30 years, and 15% tax rate on the year that you cash in your I-Bonds. After 30 years, the 0%+2% inflation I-Bonds will be worth $18,11...
by stevewolfe
Sun Mar 23, 2014 7:26 pm
 
Forum: Investing - Theory, News & General
Topic: I bonds: mathematics for when to cash in for higher rate
Replies: 13
Views: 2015

Re: I bonds: mathematics for when to cash in for higher rate

Right, but even if I've been buying the max every year, I would still want to sell all of my 0% I-Bonds if 5-year TIPs yields were at 3%. I'm not sure what premium I'd put on the reduced downside interest rate risk. Unfortunately, I don't think that there is a marketable product that is directly co...
by stevewolfe
Sat Mar 22, 2014 3:34 pm
 
Forum: Investing - Theory, News & General
Topic: I bonds: mathematics for when to cash in for higher rate
Replies: 13
Views: 2015

Re: TIPS Intermediate Fund vs. International Bond Fund

I think the best non-overlapping fund to diversify Total Bond Market index is the other bond fund you own abuss368 - Vanguard Intermediate Term Tax Exempt. If I was going to accumulate inflation protected bonds, I'd buy I-bonds (I do and have for years) or individual TIPS at auction in a ladder and ...
by stevewolfe
Fri Mar 21, 2014 3:25 pm
 
Forum: Investing - Theory, News & General
Topic: TIPS Intermediate Fund vs. International Bond Fund
Replies: 35
Views: 2772

Re: Difference - Ttl Intl Stock Mrkt Indx & All Wrld ex-US i

pradador wrote:Small caps are usually a small percentage of the total market as it is which is why you see very similar performance.


This. They are a very good tax loss harvesting pair as they perform very similarly - kind of like S&P 500 index vs. US Total Market index, but even closer most of the time.
by stevewolfe
Sat Mar 15, 2014 6:56 pm
 
Forum: Investing - Help with Personal Investments
Topic: Difference - Ttl Intl Stock Mrkt Indx & All Wrld ex-US indx?
Replies: 3
Views: 391

Re: What's a reasonable composite expense ratio?

12 basis points here. Personally I'd not go above 25 basis points if at all possible, and anything above 50 basis points to me would be highway robbery. Highway robbery? So in my 401(k) we have two primary bond options: Vanguard Total Bond Market Index Investor shares with an ER of 0.20%, a duratio...
by stevewolfe
Sat Mar 15, 2014 10:09 am
 
Forum: Investing - Help with Personal Investments
Topic: What's a reasonable composite expense ratio?
Replies: 62
Views: 2878

Re: What's a reasonable composite expense ratio?

Combined 0.299% across all accounts (includes 10% CD's and 10% I-bonds at 0.00%).
by stevewolfe
Fri Mar 14, 2014 9:27 pm
 
Forum: Investing - Help with Personal Investments
Topic: What's a reasonable composite expense ratio?
Replies: 62
Views: 2878

Re: Anti-virus for Mac?

I run no anti-virus on my linux machines nor on the Mac Mini I use as a home theater PC (there are no windows machines on this network).
by stevewolfe
Sun Mar 09, 2014 2:11 pm
 
Forum: Personal Consumer Issues
Topic: Anti-virus for Mac?
Replies: 80
Views: 3568

Re: your lowest exspense ratio fund in 401

Lowest is Vanguard Index 500 Investor shares at 0.17% ER. I emailed the 401(k) investment committee with a suggestion of trying to switch to signal share class to reduce expenses (we also have investor shares of Total Bond at 0.20%, Inflation Protected Bond at 0.20%, Extended Market index at 0.24% a...
by stevewolfe
Sun Mar 09, 2014 9:07 am
 
Forum: Personal Finance (Not Investing)
Topic: your lowest exspense ratio fund in 401
Replies: 31
Views: 1569

Re: is 4gb memory, 500gb hd adequate for new desktop?

for a non gaming pc, do you really need 8gb memory and 1tb hard drive? This would be running windows 8.1. Used for internet browsing, spreadsheets, videos, pictures, etc. Is there a performance difference between 4g mem, 500g hd vs 8g, 1tb? thanks I would get 8gb of RAM and a solid state drive inst...
by stevewolfe
Sat Mar 08, 2014 5:06 pm
 
Forum: Personal Consumer Issues
Topic: is 4gb memory, 500gb hd adequate for new desktop?
Replies: 56
Views: 1862

Re: Why the love for target date funds?

The proper advice to a 25-year-old opening a Roth IRA shouldn't be "VFFVX" - it should be "Vanguard recommends funds made up of 63% domestic stocks, 27% international stocks, and 10% bonds for someone your age - and here's why." Ah we are down to the individual percentage in ass...
by stevewolfe
Sun Mar 02, 2014 8:00 pm
 
Forum: Investing - Theory, News & General
Topic: Why the love for target date funds?
Replies: 71
Views: 3647

Re: Stable Value Rate Below "Guaranteed Minumim"?

3% minimum was likely instituted before an interest rate climate like today was envisioned. On one hand I can understand you being upset, on the other hand you pay taxes and does an artificially high rate of return seem fair to you (now imagine you aren't the beneficiary of said artificially high ra...
by stevewolfe
Sat Mar 01, 2014 8:13 pm
 
Forum: Personal Finance (Not Investing)
Topic: Stable Value Rate Below "Guaranteed Minumim"?
Replies: 17
Views: 1152

Re: Where to buy polo shirts?

All American Clothing Company. Polo shirts made in the USA (by King Louie America) for $26.99. Can't beat it with a stick. :beer
by stevewolfe
Thu Feb 27, 2014 10:56 pm
 
Forum: Personal Consumer Issues
Topic: Where to buy polo shirts?
Replies: 54
Views: 4184

Re: CBS Lazy Portfolio Update

There are active funds in the portfolios listed above.
by stevewolfe
Sun Feb 16, 2014 5:19 pm
 
Forum: Investing - Theory, News & General
Topic: CBS Lazy Portfolio Update
Replies: 10
Views: 1386

Re: Which free software would you use?

I use Turbo Tax typically.I usually buy the Deluxe version with state these days, used to get the Basic version. They offer a free online version, friends have used it for folks in their family without complaints, but I haven't. As a matter of fact, I keep a Windows virtual machine solely for Turbo ...
by stevewolfe
Sun Feb 16, 2014 9:22 am
 
Forum: Personal Finance (Not Investing)
Topic: Which free [tax preparation] software would you use?
Replies: 3
Views: 279

Re: MPT, Markowitz, Effective Frontier and Vanguard, NOT!

Maybe they (like many) view MPT as an interesting theory but impractical in reality. It's great that it can use data with perfect hindsight to show what would have been an optimal portfolio in the past, but doesn't do much for those of us investing going forward. This. Vanguard is on extremely soun...
by stevewolfe
Fri Feb 14, 2014 5:20 pm
 
Forum: Investing - Theory, News & General
Topic: MPT, Markowitz, Efficient Frontier and Vanguard, NOT!
Replies: 66
Views: 3438

Re: Confusion over Vanguard total market options

I was just noticing the same thing on T. Rowe Price's report that came in the mail the other day. Only 1 domestic fund listed over 1% if I remember correctly. Lots of funds in the 0.68% - 0.98% range.
by stevewolfe
Sun Feb 09, 2014 12:20 pm
 
Forum: Investing - Theory, News & General
Topic: Confusion over Vanguard total market options
Replies: 30
Views: 2365

Re: Amazon Prime Price Increase

We stream a lot of TV shows, the movie selection is poor. As a freebie if you ship a lot, it's a nice add in. We factor it as about $2.50-$3.00 a month of the cost.
by stevewolfe
Wed Feb 05, 2014 1:41 pm
 
Forum: Personal Consumer Issues
Topic: Amazon Prime Increase
Replies: 185
Views: 7626

Re: Amazon Prime Price Increase

I would continue to pay $79 for Prime. $119 I'd drop it in a heart beat. $99 would be tough, probably not enough value for me. $89 I'd grudgingly pay it but would consider more closely annual renewal (e.g., buy stuff i need in bulk before it expires, let it expire and wait till I need to make a big ...
by stevewolfe
Wed Feb 05, 2014 1:39 pm
 
Forum: Personal Consumer Issues
Topic: Amazon Prime Increase
Replies: 185
Views: 7626

Re: What will Penfed's February CD rates be?

Agreed I wish the rates would've lasted longer as well.

The the OP, I've used PenFed for a few years and have been happy with their rates over time. They don't always have the best rates, but they are usually pretty competitive - more so than my local bank that we were using previously.
by stevewolfe
Sun Feb 02, 2014 9:53 am
 
Forum: Investing - Theory, News & General
Topic: What will Penfed's February CD rates be?
Replies: 5
Views: 1297

Re: Question about PenFed Certificate Opening

Yes, when I spoke to a representative yesterday they said that the 3.04% APY rate would continue in February as a bonus for folks who had CD's maturing in that month.
by stevewolfe
Sat Feb 01, 2014 4:19 pm
 
Forum: Personal Finance (Not Investing)
Topic: Question about PenFed Certificate Opening
Replies: 17
Views: 1589

Re: How do you use Penfed?

It was some time ago, but I believe I joined online. Since then all transactions have been online, but with additional paperwork required for IRA transfers. If you joined to buy the 5/7-year CD @ 3%, personally I would just call and open a CD by phone today, since the rate is good only through Janu...
by stevewolfe
Fri Jan 31, 2014 2:30 pm
 
Forum: Investing - Theory, News & General
Topic: How do you use Penfed?
Replies: 24
Views: 2451

Re: Age in Bonds - Who Follows a Different Strategy?

Ages 42/39. We hold 35% stock and 65% fixed income. I don't care what the yield curve is doing in regard to % fixed income held. We invest in I-Bonds, Stable Value fund in 401(k) and CD's. We also hold Total Bond Market index and it's roughly 1/2 of the fixed income position. For stocks we are 70% U...
by stevewolfe
Sun Jan 26, 2014 10:18 am
 
Forum: Investing - Theory, News & General
Topic: Age in Bonds - Who Follows a Different Strategy?
Replies: 132
Views: 6594

Re: Bond funds are not riskier than bond ladders

Back to my boring question. So if 10 year rates spike and people get their statements which leads to meaningful outflows that doesn't mean bond funds lock in losses to the portfolio in order to satisfy redemptions? Where ladders which hold to maturity will have paper mark to market losses that are ...
by stevewolfe
Sun Jan 12, 2014 1:50 pm
 
Forum: Investing - Theory, News & General
Topic: Bond funds are not riskier than bond ladders
Replies: 120
Views: 6394

Re: Bonds and tax loss harvesting

I think I'd rather hold I-Bonds and CD's and be done with it. ;) Of course I do have to hold some bond funds as I can't get enough of the former in the right places (like my 401(k)). I guess it's a possible strategy, however, if I had to guess I'd say that the potential losses from a stock correctio...
by stevewolfe
Sun Jan 05, 2014 9:37 pm
 
Forum: Investing - Theory, News & General
Topic: Bonds and tax loss harvesting
Replies: 5
Views: 391

Re: Laptop suggestions (for my mom)

Am helping my mom get with the times with regard to her computer usage. She is currently using a desktop that is probably 10-15 years old and dial up! She is (understandably) frustrated when she tries to accomplish even the simplest of tasks online. I suggested that she get a laptop and get wifi, w...
by stevewolfe
Sun Jan 05, 2014 3:52 pm
 
Forum: Personal Consumer Issues
Topic: Laptop suggestions (for my mom)
Replies: 10
Views: 449

Re: About to Buy a 2014 Subaru Forester

We own a 2005 forester we bought new. Compared to my corolla it's an expensive to maintain car. The year we have is notorious for blowing head gaskets. Cost us $2100 to replace along with the other damage (blocked radiator a few hundred miles after dealership flushed it). We will not buy another one...
by stevewolfe
Sun Dec 29, 2013 5:27 pm
 
Forum: Personal Consumer Issues
Topic: About to Buy a 2014 Subaru Forester
Replies: 51
Views: 5180

Re: Short Term Bond Funds

Words of wisdom there on the hit intermediate funds have already taken and that short term funds may have in store. Thanks for posting.
by stevewolfe
Fri Dec 27, 2013 3:04 pm
 
Forum: Investing - Help with Personal Investments
Topic: Short Term Bond Funds
Replies: 51
Views: 5543

Re: Bond funds shock absorbers a losing prospect?

I have already shifted much of my bonds to cash and stocks. I have 85% stocks, 7% bonds, and 8% cash. With two years of distributions in cash, should I move the remaining 7% bond allocation to stocks? 7% in bonds... a 10% loss is 0.7% of the portfolio. On a million dollar portfolio that is $7k. Is ...
by stevewolfe
Fri Dec 27, 2013 2:43 pm
 
Forum: Investing - Help with Personal Investments
Topic: Bond funds shock absorbers a losing prospect?
Replies: 19
Views: 1937

Re: New PenFed CD rates!

We did the same with the 7 year at 3.49% and a couple of 5 years at 2.5%. "You pays your money and you takes your choice".
by stevewolfe
Mon Dec 23, 2013 9:28 pm
 
Forum: Investing - Theory, News & General
Topic: New PenFed CD rates!
Replies: 313
Views: 33144

Re: Today's Fed announcement

What does the Feds announcement mean to holders of the Vanguard total bond fund? This too shall pass? -or- Reports of the death of the bond market have been greatly exaggerated? -or- No one knew what would happen before the announcement and no one knows what will happen after it either... -or- It m...
by stevewolfe
Wed Dec 18, 2013 9:07 pm
 
Forum: Investing - Theory, News & General
Topic: Today's Fed announcement
Replies: 15
Views: 1764

Re: What matters over long haul is factor exposure and expen

I think BobK just nailed it for me, thanks!
by stevewolfe
Sun Dec 15, 2013 12:58 pm
 
Forum: Investing - Theory, News & General
Topic: What matters over long haul is factor exposure and expense
Replies: 37
Views: 3528

Re: TSM and "diversification."

First The proofs are theoretical. But there is historical data, such as shown earlier, where tilted portfolios had higher return at the same or lower standard-deviation than TSM. Doesn't this data invalidate the theory/proof and shouldn't we believe data rather than theory/proof when data and theor...
by stevewolfe
Sat Dec 14, 2013 6:20 pm
 
Forum: Investing - Theory, News & General
Topic: S&D vs 3 Fund Portfolio Risk Adjusted Equity Percentages
Replies: 19
Views: 1575

Re: I bonds versus CDs and other fixed products

Historically, have I bonds had a better after tax return in real terms than CDs and other fixed income products including short term bonds. I am not sure I see much of an advantage especially for higher tax brackets. Seems like you are guaranteed to lag inflation by your tax bracket? Neither will g...
by stevewolfe
Sat Dec 07, 2013 3:20 pm
 
Forum: Investing - Help with Personal Investments
Topic: I bonds versus CDs and other fixed products
Replies: 9
Views: 968

Re: New PenFed CD rates!

Steve When I opened my account two weeks ago, PenFed advised the maximum deposit was $25,000 and no additional deposits allowed for 6 mo.'s. That restriction did not apply to IRA transfers. Thank you. They must be changing those parameters as it's been a year or so since I bought the last one there...
by stevewolfe
Sun Dec 01, 2013 5:50 pm
 
Forum: Investing - Theory, News & General
Topic: New PenFed CD rates!
Replies: 313
Views: 33144

Re: New PenFed CD rates!

john94549 wrote:I think I finally figured out how PenFed pushed back on "hot money". For after-tax, there's a limit on CDs, with a waiting period.


Can you elaborate on what you mean by this? Something in the CD agreement?
by stevewolfe
Sun Dec 01, 2013 4:43 pm
 
Forum: Investing - Theory, News & General
Topic: New PenFed CD rates!
Replies: 313
Views: 33144

Re: App for writers on Macs

I can't comment on pages specifically, however, if you get frustrated with it and give up, prior to paying $130 for a copy of a Microsoft Word in a home bundle, please consider giving Libre Office a try. I've used it (along with Open Office code base it was forked from) for years and been happy as h...
by stevewolfe
Sun Dec 01, 2013 9:36 am
 
Forum: Personal Consumer Issues
Topic: App for writers on Macs
Replies: 15
Views: 568

Re: New PenFed CD rates!

Thanks for posting this. I personally *am* excited about this as I had a CD earning 2.6% mature a couple months ago and I dropped it in a 9 month no penalty CD hoping something better would come along and it just did... Dare I say 'woot'! :sharebeer
by stevewolfe
Sun Dec 01, 2013 9:23 am
 
Forum: Investing - Theory, News & General
Topic: New PenFed CD rates!
Replies: 313
Views: 33144

Re: Contest: Vanguard Total Bond Market annual return 2013-1

1.18%. If it was the CPI for two I-Bond periods in a row, and things happen in 3's how can I be wrong? :beer
by stevewolfe
Sat Nov 30, 2013 11:05 pm
 
Forum: Investing - Theory, News & General
Topic: Contest: Vanguard Total Bond Market annual return 2013-17?
Replies: 45
Views: 4040

Re: Admiral Shares

Admiral shares are just a different share class of the same fund. For example, if you have $3k to invest in a taxable account, you may invest that in the Vanguard Total Stock Market index investor class shares (e.g., VTSMX) at an expense ratio of 0.17%. If you have $10k or more to invest, or your ba...
by stevewolfe
Sat Nov 30, 2013 7:32 pm
 
Forum: Investing - Help with Personal Investments
Topic: Admiral Shares
Replies: 4
Views: 860

Re: Decreasing Bond Allocation?

How did they do during the 2008-09 crash? Stocks are stocks when it hits the fan. Dividend stocks were sold right along with anything else that wasn't bolted down and for which price could be readily discovered (e.g., liquid) to raise cash by many investors is the bottom line. Even muttering the li...
by stevewolfe
Sat Nov 30, 2013 3:23 pm
 
Forum: Investing - Help with Personal Investments
Topic: Decreasing Bond Allocation?
Replies: 18
Views: 1201
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