Search found 2026 matches
- Thu Dec 07, 2023 5:19 am
- Forum: Personal Finance (Not Investing)
- Topic: Social Security Tax Calculator
- Replies: 17
- Views: 2345
Re: Social Security Tax Calculator
Can anyone recommend a decent calculator for determining how much Social Security will be included in taxable income? The following little spreadsheet requires only three inputs (in cells B2:B4) to do this. For example a single taxpayer with $30K of SS benefits and $20K of other income will have $5,350 of his SS taxable as shown below on row 12. As a bonus, rows 14:16 calculate three inflection points as shown in the single taxpayer example of the Wiki's Taxation of Social Security benefits . Row Col A Col B Formula in Column B 2 Single = 1 / Joint = 2 1 3 Social Security benefit 30,000 4 Other income (including tax exempt) 20,000 5 Relevant income (1/2 SS + Other income) 35,000 =B3/2+B4 6 50% threshold 25,000 =IF(B2=1,25000,IF(B2=2,32000,...
- Thu Dec 07, 2023 5:09 am
- Forum: Personal Finance (Not Investing)
- Topic: Social Security Tax Calculator
- Replies: 17
- Views: 2345
Re: Social Security Tax Calculator
Yes … but if total taxable income is unknown (my situation), I can’t determine what marginal rate to apply to the 85%.bonesly wrote: ↑Wed Dec 06, 2023 7:46 pmThe Social Security Site shows this:
If your AGI is >$44K then 85% of your SS benefit is taxable, otherwise 50% is taxable.IRS wrote: You will pay tax on your Social Security benefits based on Internal Revenue Service (IRS) rules if you:
- File a joint return, and you and your spouse have a combined income* that is
- Between $32,000 and $44,000, you may have to pay income tax on up to 50% of your benefits.
- More than $44,000, up to 85% of your benefits may be taxable.
- Wed Dec 06, 2023 5:57 pm
- Forum: Personal Finance (Not Investing)
- Topic: Social Security Tax Calculator
- Replies: 17
- Views: 2345
Re: Social Security Tax Calculator
Thanks Printer86!
That’s a good one. Just one thing to point out. If 65 yoa or over you must add extra deduction somewhere. The calculator does not offer that as an adjustment. I just added the extra deduction to my income to account for that.
That’s a good one. Just one thing to point out. If 65 yoa or over you must add extra deduction somewhere. The calculator does not offer that as an adjustment. I just added the extra deduction to my income to account for that.
- Wed Dec 06, 2023 5:02 pm
- Forum: Personal Finance (Not Investing)
- Topic: Social Security Tax Calculator
- Replies: 17
- Views: 2345
Social Security Tax Calculator
[Topic is now in Personal Finance (Not Investing) - tax question. mod mkc]
I’m trying to get an idea how much of our Social Security will be taxed in order to get a rough idea what this years taxable income will total.
Can anyone recommend a decent calculator for determining how much Social Security will be included in taxable income?
Have seen charts that show the percentages but have not found one that will calculate how much will become taxable.
Thanks in advance!
I’m trying to get an idea how much of our Social Security will be taxed in order to get a rough idea what this years taxable income will total.
Can anyone recommend a decent calculator for determining how much Social Security will be included in taxable income?
Have seen charts that show the percentages but have not found one that will calculate how much will become taxable.
Thanks in advance!
- Mon Aug 21, 2023 8:36 am
- Forum: Personal Finance (Not Investing)
- Topic: Bought Tesla but won’t owe enough tax to claim EV tax credit?
- Replies: 20
- Views: 3718
Re: Bought Tesla but won’t owe enough tax to claim EV tax credit?
Thanks to everyone for helping me with your advice.
Now the challenge will be calculating Roth conversion amount to increase our tax liability up to $7500.
Now the challenge will be calculating Roth conversion amount to increase our tax liability up to $7500.
- Sun Aug 20, 2023 7:40 pm
- Forum: Personal Finance (Not Investing)
- Topic: Bought Tesla but won’t owe enough tax to claim EV tax credit?
- Replies: 20
- Views: 3718
Re: Bought Tesla but won’t owe enough tax to claim EV tax credit
Is there an annual limit on the amount converted to a Roth?
- Sun Aug 20, 2023 7:31 pm
- Forum: Personal Finance (Not Investing)
- Topic: Bought Tesla but won’t owe enough tax to claim EV tax credit?
- Replies: 20
- Views: 3718
- Sun Aug 20, 2023 4:30 pm
- Forum: Personal Finance (Not Investing)
- Topic: Bought Tesla but won’t owe enough tax to claim EV tax credit?
- Replies: 20
- Views: 3718
Re: Bought Tesla but won’t owe enough tax to claim EV tax credit?
Thank you! Im not well versed re Roth conversions. Could you advise why the Roth Conversion would be the better option?
- Sun Aug 20, 2023 4:04 pm
- Forum: Personal Finance (Not Investing)
- Topic: Bought Tesla but won’t owe enough tax to claim EV tax credit?
- Replies: 20
- Views: 3718
Bought Tesla but won’t owe enough tax to claim EV tax credit?
[Topic is now in Personal Finance (Not Investing) - EV tax credit. mod mkc] We bought a Tesla Model 3 this month. I screwed up. Never occurred to me the $7500 EV tax credit applies only to this years taxes and cannot be carried forward. (Dumb mistake on my part.) Between our tax bracket and income we wouldn’t even come close to owing enough taxes to claim the full $7500 tax credit. Last year after standard deduction our federal tax was only $2050. I’m trying to figure out how to increase our tax liability so that we can take advantage of the full $7500 tax credit. My initial thought was to make a qualified withdrawal from one of our Traditional IRA accounts in order to increase our tax liability to $7500. We are 70 and 67 yoa. I’m not even...
- Fri Jul 28, 2023 7:23 am
- Forum: Personal Investments
- Topic: How to reduce taxes on returns with low stock allocation
- Replies: 20
- Views: 1204
Re: How to reduce taxes on returns with low stock allocation
Very interesting. So if am understanding correctly:Jack FFR1846 wrote: ↑Fri Jul 28, 2023 7:03 am Switch bond investments to tax exempt bond funds.
On the stock side, switch from VTI-like funds to non-dividend paying investments such as BRK or AMZN.
For money market accounts, put that money into the above 2 besides what you need to spend.
Use money market account money to buy US Savings bonds.
I'm doing all of this except for the bond side as all of my bonds are in traditional IRAs.
1. Switch from index to individual stocks?
2. Move money market fund into tax-exempt bond fund and US Savings Bonds?
FYI- All our tax-advantaged are in VUSXX and BND.
- Fri Jul 28, 2023 7:13 am
- Forum: Personal Investments
- Topic: How to reduce taxes on returns with low stock allocation
- Replies: 20
- Views: 1204
Re: How to reduce taxes on returns with low stock allocation
I had no idea one could move money from taxable accounts into an existing tax-advantaged TIRA’s. Really?MrJedi wrote: ↑Fri Jul 28, 2023 6:39 am Do you have any 401k/IRA etc. that you can swap your money market into and then buy stock in taxable instead?
Otherwise you can get municipal money market or bond that is exempt from tax. They have lower nominal yield but if you have high tax rate you can have higher after tax yield.
- Fri Jul 28, 2023 6:33 am
- Forum: Personal Investments
- Topic: How to reduce taxes on returns with low stock allocation
- Replies: 20
- Views: 1204
Re: How to reduce taxes on returns with low stock allocation
Buy an annuity with a COLA for your monthly draw, keep a healthy emergency fund, and put the rest in stocks. Is the income from an annuity taxed at rates lower than the “ordinary income” we receive from our money market fund? We really have no need for an investment that provides a monthly draw. All our expenses including, travel and entertainment are covered by SS and pension. Also, as mentioned in my OP, we have identified based on our need, ability, and willingness for risk, that our current 20% stock allocation eliminates any desire to allocate more than 20% to stocks. (Am fully aware that qualified dividends and LT gains from stocks are taxed at lower capital gains rates.) What I am not well versed in is how to reduce taxes on the “or...
- Thu Jul 27, 2023 7:14 pm
- Forum: Personal Investments
- Topic: How to reduce taxes on returns with low stock allocation
- Replies: 20
- Views: 1204
How to reduce taxes on returns with low stock allocation
Am 7O, retired, pension, social, no debt. We have no children or heirs. Have low risk tolerance and no need for any further increase in risk or returns at this point.
My taxable account allocation is 20% VTI and 80% federal money market. This allocation along with SS and pension more than covers our expenses.
In fact our total nest egg has remained the same since we retired 13 years ago.
The problem is the 80% of my returns from the money market are taxed as ordinary income.
Is there any way to reduce my taxes without holding more stocks in taxable account?
Would appreciate any thoughts or comments.
Thanks!
My taxable account allocation is 20% VTI and 80% federal money market. This allocation along with SS and pension more than covers our expenses.
In fact our total nest egg has remained the same since we retired 13 years ago.
The problem is the 80% of my returns from the money market are taxed as ordinary income.
Is there any way to reduce my taxes without holding more stocks in taxable account?
Would appreciate any thoughts or comments.
Thanks!
- Thu Jul 27, 2023 6:20 pm
- Forum: Personal Investments
- Topic: Roth Conversion 5 year wait rule question
- Replies: 19
- Views: 1930
Re: Roth Conversion 5 year wait rule question
Many thanks to everyone for helping me understand this.
- Thu Jul 20, 2023 6:50 am
- Forum: Personal Investments
- Topic: Roth Conversion 5 year wait rule question
- Replies: 19
- Views: 1930
Re: Roth Conversion 5 year wait rule question
Okay maybe in getting to old, but everything I’m reading says the same thing.
Watch out for the five-year rule!
“The IRS requires any conversion to have occurred at least five years before you access the money.”
“If you have not kept assets in your Roth IRA for five or more years, you may be charged taxes and/or penalties on withdrawals,” says Keihn. “If you think you’re going to need to withdraw the assets in less than five years from opening a Roth IRA, you may want to reconsider a conversion or have a conversation with a CPA to see if it’s still the best path for you.”
Watch out for the five-year rule!
“The IRS requires any conversion to have occurred at least five years before you access the money.”
“If you have not kept assets in your Roth IRA for five or more years, you may be charged taxes and/or penalties on withdrawals,” says Keihn. “If you think you’re going to need to withdraw the assets in less than five years from opening a Roth IRA, you may want to reconsider a conversion or have a conversation with a CPA to see if it’s still the best path for you.”
- Wed Jul 19, 2023 2:30 pm
- Forum: Personal Investments
- Topic: Roth Conversion 5 year wait rule question
- Replies: 19
- Views: 1930
Re: Roth Conversion 5 year wait rule question
Think my question was not worded properly.
So if I converted my entire TIRA to Roth, there would be no 5 year wait required for withdrawals?
- Wed Jul 19, 2023 1:26 pm
- Forum: Personal Investments
- Topic: Roth Conversion 5 year wait rule question
- Replies: 19
- Views: 1930
Roth Conversion 5 year wait rule question
Am retired, 70 years old, collecting SS and on Medicare.
Have both traditional and Roth IRA’s that were set up many years ago during employment.
If I convert my entire Traditional IRA to a Roth, do I have to wait 5 years before taking withdrawals without penalty?
Have both traditional and Roth IRA’s that were set up many years ago during employment.
If I convert my entire Traditional IRA to a Roth, do I have to wait 5 years before taking withdrawals without penalty?
- Tue Jul 18, 2023 4:22 pm
- Forum: Investing - Theory, News & General
- Topic: Trading Treasuries (nominal and TIPS)
- Replies: 4107
- Views: 455703
- Tue Jul 18, 2023 3:56 pm
- Forum: Investing - Theory, News & General
- Topic: Trading Treasuries (nominal and TIPS)
- Replies: 4107
- Views: 455703
Re: Trading Treasuries (nominal and TIPS)
Are all the T-Bills $1,000 face value if buying a quantity of 1?
- Tue Jul 18, 2023 10:23 am
- Forum: Personal Investments
- Topic: Get out of Vanguard Short-Term Federal Fund?
- Replies: 17
- Views: 2834
Re: Get out of Vanguard Short-Term Federal Fund?
Thanks Livesoft!
- Tue Jul 18, 2023 4:34 am
- Forum: Personal Investments
- Topic: Get out of Vanguard Short-Term Federal Fund?
- Replies: 17
- Views: 2834
Re: Get out of Vanguard Short-Term Federal Fund?
Hi Livesoft!livesoft wrote: ↑Fri Jul 14, 2023 4:17 pm
With dividends reinvested, Morningstar.com suggests the fund is not down 9% since July 2021, but maybe down only 5%. That's much better than an intermediate-term total US bond index fund like VBTLX which is down about 12% over the same time.
Have you rebalanced more money into VSGDX since equities have gone way up this year? If not, then why not? That's how to recover losses in VSGDX: buy low and sell high. Of course, you really shouldn't care whether you recover any losses or not.
It’s been awhile since checking in with the Boglehead family.
Need some follow up advice.
I switched VSGDX dividends to “reinvest” back into VSGDX.
But how much stocks should be sold to reinvest into VSGDX?
- Tue Jul 18, 2023 3:57 am
- Forum: Personal Investments
- Topic: Get out of Vanguard Short-Term Federal Fund?
- Replies: 17
- Views: 2834
Re: Get out of Vanguard Short-Term Federal Fund?
livesoft wrote: ↑Fri Jul 14, 2023 4:17 pmWith dividends reinvested, Morningstar.com suggests the fund is not down 9% since July 2021, but maybe down only 5%. That's much better than an intermediate-term total US bond index fund like VBTLX which is down about 12% over the same time.
Have you rebalanced more money into VSGDX since equities have gone way up this year? If not, then why not? That's how to recover losses in VSGDX: buy low and sell high. Of course, you really shouldn't care whether you recover any losses or not.
- Mon Jul 17, 2023 4:04 pm
- Forum: Personal Investments
- Topic: Get out of Vanguard Short-Term Federal Fund?
- Replies: 17
- Views: 2834
Re: Get out of Vanguard Short-Term Federal Fund?
Thanks to everyone for your thoughts. Needed to hear some Boglehead wisdom to counter my behavioral slip.
- Fri Jul 14, 2023 4:01 pm
- Forum: Personal Investments
- Topic: Get out of Vanguard Short-Term Federal Fund?
- Replies: 17
- Views: 2834
Re: Get out of Vanguard Short-Term Federal Fund?
Thanks.Johm221122 wrote: ↑Fri Jul 14, 2023 1:27 pm How close to retirement?
You need to have a plan which includes what form of fixed income to hold. There is no free lunch, whichever fixed income choice you make has risk (individual issues, money market, short term, intermediate and long term fixed income)
Have been retired for years now and still have a few years until RMD’s.
Was actually wanting to avoid bond funds in favor of T-Bill ladder CD’s or money market.
Just not sure how long it would take to recover losses staying in VSGDX.
- Fri Jul 14, 2023 1:22 pm
- Forum: Personal Investments
- Topic: Get out of Vanguard Short-Term Federal Fund?
- Replies: 17
- Views: 2834
Get out of Vanguard Short-Term Federal Fund?
Moved a considerable amount of money into Vanguard Short-Term Federal Fund VSGDX in July 2021. (It’s in my tax-advantage account.) Since then the fund is down over 9%.
I’m wondering if I should move VSGDX into the Federal Money Market Fund in order to avoid further losses.
Don’t normally poke around like this but am really tempted in light of further interest rate hikes.
Would appreciate any advice/feedback from the forum.
Thanks!
I’m wondering if I should move VSGDX into the Federal Money Market Fund in order to avoid further losses.
Don’t normally poke around like this but am really tempted in light of further interest rate hikes.
Would appreciate any advice/feedback from the forum.
Thanks!
- Tue Jul 11, 2023 4:44 pm
- Forum: Personal Investments
- Topic: Fake Vanguard email spoof [May not be spoof - Move to brokerage platform request]
- Replies: 11
- Views: 3805
Re: Fake Vanguard email spoof [May not be spoof - Move to brokerage platform request]
Just received same email today. It did look suspect. Rather than replying to email I went directly to Vanguard site.
Checked my delivery settings and discovered a couple of our holdings needed consent for e-delivery.
Checked my delivery settings and discovered a couple of our holdings needed consent for e-delivery.
- Wed Jun 28, 2023 7:01 am
- Forum: Personal Consumer Issues
- Topic: International Long Haul Flight - Premium Economy?
- Replies: 61
- Views: 6273
Re: International Long Haul Flight - Premium Economy?
Can never sleep on regular Economy. Hoping this is better. Thanks. It isn't better for sleep. I've flown United PE (the true PE cabin, not economy plus) and you're basically getting a bit more leg room, a foot rest, and a slightly wider seat. The biggest issue for me in sleeping on a plane is recline, and the PE seats barely recline further than regular economy, so you're still essentially sleeping upright. If you can't sleep in economy, I doubt you can sleep any better in PE. I think PE is worth $3-400 more than economy (depending on the length of the flight), but I am routinely seeing PE tickets that cost $1,000 more than economy. Having flown in PE, there's no way it's even close to being worth that premium. I get the impression its a b...
- Wed Jun 28, 2023 6:56 am
- Forum: Personal Consumer Issues
- Topic: International Long Haul Flight - Premium Economy?
- Replies: 61
- Views: 6273
Re: International Long Haul Flight - Premium Economy?
Last year we flew business class to Venice on AA. We had lie flat seats and it was a real treat.
On our return flight we had premium economy. I didn’t like it. Won’t do premium economy again.
Maybe I was spoiled from the business class experience on the way over.
On our return flight we had premium economy. I didn’t like it. Won’t do premium economy again.
Maybe I was spoiled from the business class experience on the way over.
- Tue Jun 27, 2023 4:07 pm
- Forum: Personal Finance (Not Investing)
- Topic: 6.35% fixed rate or cash offer?
- Replies: 51
- Views: 4860
Re: 6.35% fixed rate or cash offer?
Keeping it simple.
From MIT grad and prolific YouTuber Sal Khan.
https://www.youtube.com/watch?v=YL10H_EcB-E
From MIT grad and prolific YouTuber Sal Khan.
https://www.youtube.com/watch?v=YL10H_EcB-E
- Tue Jun 27, 2023 3:56 pm
- Forum: Personal Finance (Not Investing)
- Topic: Is it better to buy house now or in few years?
- Replies: 25
- Views: 3335
Re: Is it better to buy house now or in few years?
Investment advisor William Bernstein rule of thumb is:
Never pay more than 15 years' fair rental value for any home, or 180 months of rent.
Never pay more than 15 years' fair rental value for any home, or 180 months of rent.
- Mon Apr 10, 2023 3:34 pm
- Forum: Personal Finance (Not Investing)
- Topic: SSA-1099 and Medicare Part B deductions
- Replies: 11
- Views: 684
Re: SSA-1099 and Medicare Part B deductions
Thank you for the wiki link! It’s a great resource. Should have looked there first.FiveK wrote: ↑Mon Apr 10, 2023 2:30 pmOK, so we're not talking about the SSA-1099 form itself, but how the Taxation of Social Security benefits works? Does that wiki answer your question?Bustoff wrote: ↑Mon Apr 10, 2023 2:20 pm Okay, think I figured it out.
Last year I sold some Total Stock Mkt shares. They were taxed as long term cap gains. My taxes for those gains was zero.
This year was only ordinary dividends.
So guessing long term cap gains show up as taxable income on line 15 even if they were taxed at zero?
- Mon Apr 10, 2023 2:20 pm
- Forum: Personal Finance (Not Investing)
- Topic: SSA-1099 and Medicare Part B deductions
- Replies: 11
- Views: 684
Re: SSA-1099 and Medicare Part B deductions
Okay, think I figured it out.
Last year I sold some Total Stock Mkt shares. They were taxed as long term cap gains. My tax rate on those LT gains was zero.
So guessing long term cap gains show up as taxable income on line 15 even if they were taxed at zero?
That must be why last years “taxble income” was higher than this year and why I owed less last year than this year.
This year “taxable income” all ordinary dividends so those were taxed at a higher rate.
Last year I sold some Total Stock Mkt shares. They were taxed as long term cap gains. My tax rate on those LT gains was zero.
So guessing long term cap gains show up as taxable income on line 15 even if they were taxed at zero?
That must be why last years “taxble income” was higher than this year and why I owed less last year than this year.
This year “taxable income” all ordinary dividends so those were taxed at a higher rate.
- Mon Apr 10, 2023 2:04 pm
- Forum: Personal Finance (Not Investing)
- Topic: SSA-1099 and Medicare Part B deductions
- Replies: 11
- Views: 684
Re: SSA-1099 and Medicare Part B deductions
Thanks for your replies!
Sorry about not correctly naming the boxes.
What got me going on this is that my taxable income (line15) this year is less than last year, but my tax (line 16) has doubled from last year!?
Am really confused.
Sorry about not correctly naming the boxes.
What got me going on this is that my taxable income (line15) this year is less than last year, but my tax (line 16) has doubled from last year!?
Am really confused.
- Mon Apr 10, 2023 12:32 pm
- Forum: Personal Finance (Not Investing)
- Topic: SSA-1099 and Medicare Part B deductions
- Replies: 11
- Views: 684
SSA-1099 and Medicare Part B deductions
Re Form SA-1099 Social Security Benefit Statement, can anyone explain why the “Medicare Part B premiums deducted” amount is added to the total SS benefits for 2022? Why wouldn’t the Medicare Part B premiums be subtracted from the total SS benefits?
Thanks
Thanks
- Fri Mar 24, 2023 3:55 pm
- Forum: Investing - Theory, News & General
- Topic: Bernstein on TIPS and T-bills
- Replies: 171
- Views: 26647
Re: Bernstein on TIPS and T-bills
Curious if I-Bonds (in my Treasury Direct account) qualify re Bernstein’s TIPS allocation? I would say yes. I now view our pile of IBonds as “separate” from our marketable portfolio, similar to how one would view a TIPS LMP. Unlike TIPS, I don’t need to decide ahead of time on how much to ladder. This is because IBonds don’t have any interest rate risk. I view them as a social-security like stream of income that can be turned on and off at will. For example 10,000 of IBonds can supply $1000/yr of inflation protected purchasing power for 10 years, or $10,000 of inflation protected purchasing power in 10 years from now. My choice :). As such they can act like an income smoothing agent when withdrawing from a volatile, marketable portfolio (c...
- Fri Mar 24, 2023 1:45 pm
- Forum: Investing - Theory, News & General
- Topic: Bernstein on TIPS and T-bills
- Replies: 171
- Views: 26647
Re: Bernstein on TIPS and T-bills
Curious if I-Bonds (in my Treasury Direct account) qualify re Bernstein’s TIPS allocation?
- Fri Mar 24, 2023 1:25 pm
- Forum: Personal Consumer Issues
- Topic: What Movie Have You Recently Watched?
- Replies: 11037
- Views: 2066907
Re: What Movie Have You Recently Watched?
Watched “Hereditary” last night. Am a fan of creepy movies. Not boring at all. Also pretty creepy by my standards for creepiness. ymmv
- Mon Feb 27, 2023 1:46 pm
- Forum: Personal Investments
- Topic: Does Vanguard have a bond ladder tool?
- Replies: 3
- Views: 1841
Re: Does Vanguard have a bond ladder tool?
Thanks RK! Will check it out.RetiredinKaty wrote: ↑Mon Feb 27, 2023 12:54 pm Yes. But you have to log into your Vanguard account and indicate that you wish to trade bonds to access the bond trading platform. The ladder facility is under one of the resource tabs at the top of the page.
- Mon Feb 27, 2023 8:26 am
- Forum: Personal Investments
- Topic: Does Vanguard have a bond ladder tool?
- Replies: 3
- Views: 1841
Does Vanguard have a bond ladder tool?
I’ve seen a Vanguard bond ladder tool mentioned in the forum. Poked around the Vanguard website but could not find anything.
- Thu Jan 19, 2023 8:48 am
- Forum: Personal Consumer Issues
- Topic: Garage Door Opener Replacement
- Replies: 48
- Views: 4068
Re: Garage Door Opener Replacement
+ Me too!SevenBridgesRoad wrote: ↑Wed Jan 18, 2023 7:54 pmI second this.HomeStretch wrote: ↑Wed Jan 18, 2023 5:20 pm I can’t comment on installing it as I had mine professionally installed a couple years ago. But I really like the LiftMaster 3/4 hp W-LED (belt drive) opener. Very quiet when operating. It also has My-Q wi-fi access (to open it remotely or check if door was left open), bright auto-sensor LED that lights the entire garage and battery back-up so it operates during power outages.
BTY, sometimes it’s the sensors that get old or the lenses need cleaning or adjusting.
- Tue Jan 17, 2023 7:03 am
- Forum: Personal Investments
- Topic: Where to put cash other than ibonds right now (due to inflation)
- Replies: 31
- Views: 5781
Re: Where to put cash other than ibonds right now (due to inflation)
They don't come with inflation protection - but TIPS' inflation protection isn't free, either. The cost of TIPS' inflation protection is very arguably so small as to be inconsequential to most retail investors, and it might even be negative. The breakeven inflation rate on 5 year TIPS is only 3.2%, which is far below the most recent annual inflation rate of 8.5%. I would argue against 100% TIPS for 5 years out or longer. No one knows where we'll be then. Investment Grade Corporate bonds of all maturities may be the wild card. I have long argued that 100% TIPS and I bonds should be the default position for investors. Otherwise, they are taking on inflation risk for little or no compensation. Just curious if you mean 100% TIPS for bond porti...
- Thu Dec 29, 2022 2:19 pm
- Forum: Personal Investments
- Topic: Bond losses
- Replies: 6
- Views: 1057
Re: Bond losses
Thanks!
- Thu Dec 29, 2022 9:59 am
- Forum: Personal Investments
- Topic: Bond losses
- Replies: 6
- Views: 1057
Bond losses
Happy New Year Bogleheads,
Have losses in bond funds and bond ETFs in tax-advantaged accounts (assuming many other folks as well).
With the inability to TLH those losses tax-advantaged, was curious what strategies, if any, others are employing?
Thanks
Have losses in bond funds and bond ETFs in tax-advantaged accounts (assuming many other folks as well).
With the inability to TLH those losses tax-advantaged, was curious what strategies, if any, others are employing?
Thanks
- Wed Dec 28, 2022 9:41 am
- Forum: Personal Consumer Issues
- Topic: Flight attendant travel tips
- Replies: 193
- Views: 22818
Re: Flight attendant travel tips
That being said southwest realizes that they have certain number of passengers that had delayed connectors and thus will hold plane up to 30 -45 minutes to permit people to connect. When this happened I was happy to catch my plane but the had to sit in row 28 in a middle seat despite having a A1-15 boarding pass. I have seen many people very upset having paid “business” fair and the.
Why would you lose your seat assignment?
- Fri Oct 21, 2022 10:31 am
- Forum: Personal Investments
- Topic: Sell Vanguard Short Term Federal?
- Replies: 16
- Views: 1562
Re: Sell Vanguard Short Term Federal?
Oh sorry, forget a question.
Assuming a rising rate environment going forward, (I know, big assumption) should one reinvest the bond fund dividends or sweep the dividends into money market fund?
Assuming a rising rate environment going forward, (I know, big assumption) should one reinvest the bond fund dividends or sweep the dividends into money market fund?
- Fri Oct 21, 2022 10:22 am
- Forum: Personal Investments
- Topic: Sell Vanguard Short Term Federal?
- Replies: 16
- Views: 1562
Re: Sell Vanguard Short Term Federal?
Copy that.David Jay wrote: ↑Thu Oct 20, 2022 4:07 pmBond funds have seen a near historic drop in value because interest rates have seen a series of near historic rate increases. Treasuries that were at 1.x% a few months ago are now at 4.x%. So your anxiety is natural. Unfortunately for us humans, "natural" is not the same as "good investing".
Thanks to everyone that contributes to this forum, was able to adopt an asset allocation based on my own risk tolerance (Thanks Swedroe).
Took for granted that the safe part of AA, ie bonds, would be the safe harbor.
But as they say …
“A smooth sea never made a skilled sailor.”
- Thu Oct 20, 2022 3:32 pm
- Forum: Personal Investments
- Topic: Sell Vanguard Short Term Federal?
- Replies: 16
- Views: 1562
Re: Sell Vanguard Short Term Federal?
Was in Total Bond Fund. Thought switching to a shorter duration would be better.suemarkp wrote: ↑Thu Oct 20, 2022 12:48 pm What were your reasons for buying into this fund? Were you in long term bonds and wanting to go shorter? Were you in stocks and wanted something less volatile and willing to give up return? If so, you met those goals, and lost less money than you would have if you kept it where it was.
Don’t know why I’m getting anxious about this. Have been in “stay the course” mode for a long time.
Thanks for your thoughts!
- Thu Oct 20, 2022 1:04 pm
- Forum: Personal Investments
- Topic: Sell Vanguard Short Term Federal?
- Replies: 16
- Views: 1562
Re: Sell Vanguard Short Term Federal?
Thanks David!David Jay wrote: ↑Thu Oct 20, 2022 12:01 pm I would say that this is not the time to sell. The reason for the drop is that interest rates have increased. This means two things for bond funds:
1) You will receive more interest on your money, so that is a good thing
2) Your fund value has temporarily dropped. Because it is a short term fund, it will quickly recover the full value. This is temporary, but the additional interest that you will earn should be much longer lasting.
If you sell now, you will experience all the pain without any of the gain.
There is no immediate need for cash. If I keep the VSGDX, should the dividends be reinvested or sweep them into the money market fund.
- Thu Oct 20, 2022 11:54 am
- Forum: Personal Investments
- Topic: Sell Vanguard Short Term Federal?
- Replies: 16
- Views: 1562
Re: Sell Vanguard Short Term Federal?
TLH as in tax loss harvesting?
My short term federal bond fund is in tax-advantaged. I didn’t think you could use TLH with assets in tax-advantage accounts.
- Thu Oct 20, 2022 11:03 am
- Forum: Personal Investments
- Topic: Sell Vanguard Short Term Federal?
- Replies: 16
- Views: 1562
Sell Vanguard Short Term Federal?
Retired and am 69 yoa.
Transferred $180,000 to Vanguard Short Term Federal in July 2021. The current balance is now down to $169,000 for a loss of $16,000. This is in my tax advantage account.
Am concerned about further losses and wondering if selling/transferring to the Federal Money Market fund or VUSB (Vanguard Ultra Short Bond Fund)
would be a mistake.
Is there a better course of action? Would appreciate any thoughts.
Transferred $180,000 to Vanguard Short Term Federal in July 2021. The current balance is now down to $169,000 for a loss of $16,000. This is in my tax advantage account.
Am concerned about further losses and wondering if selling/transferring to the Federal Money Market fund or VUSB (Vanguard Ultra Short Bond Fund)
would be a mistake.
Is there a better course of action? Would appreciate any thoughts.