Search found 3162 matches

by alec
Sat Mar 23, 2024 9:23 am
Forum: Personal Consumer Issues
Topic: Do you setback thermostat on your electric heatpump?
Replies: 47
Views: 2749

Re: Do you setback thermostat on your electric heatpump?

We don't do setbacks winter or summer. Sure, our variable speed Lennox heat pump system will run faster/harder and catch up relatively quickly, but that's just the air temp, not the furnishings temp. Let's say we have one of our regular power outages due to tree limbs falling somewhere on our 1100-customer circuit out here in the woods along the river. The indoor temp falls from the usual 70*F to, say, 67. When the power returns the indoor temp gets back up to 70 fairly rapidly, but the funiture, walls, floor, clothes in the closet, etc. take a few hours longer to get up to temp. I won't even get into the expense of the recovery if the auxillary/emergency heat strips are used. Now, imagine you have the backup strips running for an hour or ...
by alec
Sat Mar 23, 2024 9:05 am
Forum: Personal Finance (Not Investing)
Topic: At what age to tell child about family's finances
Replies: 74
Views: 6100

Re: At what age to tell child about family's finances

My Dad was an estate attorney and he told any number of nightmares about parents who didn't share accurate and up to date financial information with heirs. Lost assets, theft and fraud by advisors, caregivers, or strangers etc. Long searches for assets that didn't exist or were disposed of decades ago. Completely inappropriate mismanaged investments. Kids who thought their parents had lots of assets and planned accordingly (assumed they could age in place and hire anything they needed) when in fact they had nothing. And vice-versa. A lot of people who wouldn't share information with kids did also not share information with spouses will all kinds of similiar disasters. He thought it was a power/control disorder. Very interesting post. I can...
by alec
Sat Mar 23, 2024 9:01 am
Forum: Personal Finance (Not Investing)
Topic: At what age to tell child about family's finances
Replies: 74
Views: 6100

Re: At what age to tell child about family's finances

igotashoe wrote: Fri Mar 22, 2024 10:01 pm Our 3 kids are 11, 9, and 7. We tell them everything. It comes with the risk that they will compare or tell friends. I’m okay accepting that risk for the trade off of them having an excellent financial education. They each have their own stock accounts and I can use mine as an example. They know how our rentals work, mortgages, revenue, taxes, etc. They are good with expenses, cost, debt, etc. Obviously my 11 year old understands better than the 7 year old. Teaching kids about finances is a key part of parenting and letting them have visibility and examples helps with that I think.
+1. it's a good learning experience that sparks good conversations.
by alec
Sat Mar 16, 2024 11:06 am
Forum: Personal Investments
Topic: 10 Year TIPS Purchase for Ladder - What to buy in 2024
Replies: 8
Views: 1677

Re: 10 Year TIPS Purchase for Ladder - What to buy in 2024

I think you'd want to buy TIPS asap as yields could decline the further out you go, so I'd go with the nearest re-opening.

But check with https://www.tipsladder.com to be sure.
by alec
Fri Mar 15, 2024 3:57 pm
Forum: Personal Investments
Topic: What should I do with a deferred annuity?
Replies: 15
Views: 1414

Re: What should I do with a deferred annuity?

Here’s the link with the info you want

https://fundresearch.fidelity.com/fund- ... duct=FPRAI

Expense ratio looks quite low 0.12%.

If there are surrender charges, and not much taxable gains, and you’re just going to invest in a tax efficient Total Market index fund, I can see withdrawing the annuity.

OTOH, if you want more tax deferred space for bonds, you could move the money into the bond index account.
by alec
Wed Mar 13, 2024 5:10 am
Forum: Personal Investments
Topic: How is a broker going to make money off me?
Replies: 62
Views: 6049

Re: How is a broker going to make money off me?

billaster wrote: Tue Mar 12, 2024 10:56 pm
Northern Flicker wrote: Tue Mar 12, 2024 10:14 pm Fidelity and Vanguard do not accept payment for order flow.
Fidelity does not accept payment for order flow for equities or ETFs. Fidelity does accept payment for order flow for options, which typically is more lucrative. You can see that above in the Schwab trading revenue. Schwab receives twice as much order flow revenue from options as from equities.

Vanguard claims they never receive payment for order flow, but I don't know the details.
VBS’s 606 report says that it doesn’t receive payment for order flow. Here are the historical reports starting with 4Q2023.

https://nms606.karngroup.com/vgrd/606a/ ... 588e3c62ff
by alec
Mon Mar 11, 2024 10:46 pm
Forum: Investing - Theory, News & General
Topic: Embracing Principles [during the dot-com bubble and tech surges?]
Replies: 43
Views: 4195

Re: Embracing Principles Amidst Bitcoin and Nvidia's Surge?

If FOMO is causing you so much heartache and anxiety, then following the crowd won’t cure that. Unfortunately, you may find out many years too late. Maybe see a therapist to see why it bothers you so much.
by alec
Sun Mar 10, 2024 3:49 pm
Forum: Investing - Theory, News & General
Topic: How Limit order purchases of ETFs work - still learning
Replies: 12
Views: 883

Re: How Limit order purchases of ETFs work - still learning

When buying using dollar amounts at Fidelity there will probably be a little left over. When using a limit order you are declaring the price you want to buy at and as stated above Fidelity might not be able to find a seller at that price depending on the market. Unless you have a really good reason to use a limit order I would just use a market order. For highly traded securities like VTI it will execute nearly instantly at a good price. Doing things this way you will more than likely have your orders filled well and the leftover amount will be closer to the few penny amount. Since you are at Fidelity, if this would be something you are doing on a regular basis I would just set it up as a recurring investment (daily/weekly/monthly) and let...
by alec
Thu Mar 07, 2024 5:38 am
Forum: Personal Finance (Not Investing)
Topic: Laid off and want to downshift
Replies: 30
Views: 4874

Re: Laid off and want to downshift

OP,

You gotta do what you gotta do. Personally, if the fed job is the only offer you’ve gotten, I’d take it and keep looking. Then re evaluate if/when you get an another offer. I’d ask the hiring agency what possible grade increase looks like. Like r u getting hired at the top grade for the position, or cash it go up to a higher grade.

If you’ve done the calculations and it works out, and the others above haven’t come back with calcs showing it doesn’t work, then you’re likely fine.

Also, here are some historical fed salary increases. Looks like few and far between, which is why to ask about future grade increases.

https://www.federalpay.org/gs/raises
by alec
Tue Mar 05, 2024 8:26 pm
Forum: Personal Investments
Topic: the psychological value of "paycheck replacement." Any role for annuities or TIPS ladders?
Replies: 54
Views: 6529

Re: the psychological value of "paycheck replacement." Any role for annuities or TIPS ladders?

Do you have a TIPS fund in your 457? That way if TIPS real yields fall, the value of the TIPS fund will rise.
by alec
Tue Mar 05, 2024 7:08 pm
Forum: Personal Investments
Topic: Recent Windfall, Readjust Portfolio.
Replies: 6
Views: 1216

Re: Recent Windfall, Readjust Portfolio.

So the “windfall” portfolio isn’t an inheritance where you a stepped up basis, correct?
by alec
Sat Mar 02, 2024 8:43 am
Forum: Investing - Theory, News & General
Topic: Case study Broker trade executions
Replies: 313
Views: 52076

Re: Case study Broker trade executions

Posting to add one positive experience at Vanguard. Last week I bought 32 shares of LTPZ (Pimco 15+ yr TIPS ETF) at around 1:30 PM. The order entry screen said that the bid was 55.10 x 500 and the ask was 55.15 x 600, and the 32 shares were executed immediately at 55.125 (so price improvement).
by alec
Fri Mar 01, 2024 10:51 am
Forum: Personal Finance (Not Investing)
Topic: Pre-retirement: the "hurry up and wait" phase
Replies: 17
Views: 1858

Re: Pre-retirement: the "hurry up and wait" phase

I grew a beard and started a hobby (running).

Also, high school with my kids was much more active for me as they had more demanding activities. So I was busier than when they were in middle school.
by alec
Sun Feb 25, 2024 10:10 pm
Forum: Personal Investments
Topic: Portfolio Advice
Replies: 23
Views: 2257

Re: Portfolio Advice

yogesh wrote: Sun Feb 25, 2024 8:43 pm Your investment choices are good so no need to make any drastic changes. Somehow savings rate needs to go high and expenses go down a bit even if it means paying off loans.
Maybe I’m missing it, but Dave and spouse have 2.9 million in retirement accounts, and are adding between 95-100k annually (including employer contributions). Plus spouse’s 100k per year pension. Plus both will get large SS. Plus Dave can work past 65.

Why does savings rate need to go high(er)?
by alec
Sun Feb 25, 2024 3:57 pm
Forum: Personal Investments
Topic: Laddering securites?
Replies: 4
Views: 428

Re: Laddering securites?

Currently, you don't need to "lock up" money to get a higher yield because short term interest rates are higher than longer term interest rates (inverted yield curve). Short term rates are above 5% - see here - https://personal.vanguard.com/us/FixedIncomeHome. Since it appears you're just starting out, it might be easier and simpler to just use something like Vanguard's Treasury Money Market Fund - https://investor.vanguard.com/investment-products/mutual-funds/profile/vusxx. I'm about your age, and use this fund for short term savings. Very easy to buy/sell from/to your checking account. If the yield curve returns to more normal, and you have more $$ accumulated to make a difference, then take another look at what you described. O...
by alec
Sun Feb 25, 2024 3:42 pm
Forum: Investing - Theory, News & General
Topic: CalPERS Supplemental Contributions Plan - Does anyone have experience with this?
Replies: 7
Views: 1606

Re: CalPERS Supplemental Contributions Plan - Does anyone have experience with this?

If you have bond like investments in your taxable account that you'd really rather hold in retirement accounts, then this after tax plan may be good as you can defer the return/interest on the bond fund until withdraw rather than pay taxes on them every year.
by alec
Sun Feb 25, 2024 1:08 pm
Forum: Personal Investments
Topic: Portfolio Advice
Replies: 23
Views: 2257

Re: Portfolio Advice

Thanks. Agree with stan1 that everything looks pretty good. Excellent use of the Target Retirement funds to make it pretty simple. I think using the 457 to shelter even more retirement money at your current high tax rates rather than putting money into the taxable account is a good idea. Though, I think I'd pay off the car loans before putting money in the taxable account. What type of 457 is it? e.g., the kind executive of companies use, or the kind that state employees have access to. Maybe a link to your school's 457 website would help. For context, he’s a tenured professor. She’s a physician. So, income is secure, and this absent-minded professor could work for a long time. She is likely to retire when she becomes eligible for the maxim...
by alec
Sun Feb 25, 2024 10:24 am
Forum: Personal Investments
Topic: Portfolio Advice
Replies: 23
Views: 2257

Re: Portfolio Advice

Just curios why you’re only contributing 3% to your 403(b) unless that’s a typo.
by alec
Sat Feb 24, 2024 4:02 pm
Forum: Personal Finance (Not Investing)
Topic: Do your intra-company yearly raises keep with inflation?
Replies: 60
Views: 6333

Re: Do your inter-company yearly raises keep with inflation?

Afty wrote: Sat Feb 24, 2024 3:51 pm Companies don't give raises to keep up with inflation, they give raises to keep up with market rates.
+1.
by alec
Fri Feb 23, 2024 3:10 pm
Forum: Personal Investments
Topic: Investment Strategy when approaching Retirement.
Replies: 32
Views: 3097

Re: Investment Strategy when approaching Retirement.

My in laws amassed pretty large 401k balances, and used Vanguard’s Personal Advisor Services after rolling the 401k over into an IRA. They’ve been happy so far, and I think it’s around 0.30% per year.
by alec
Fri Feb 23, 2024 2:52 pm
Forum: Personal Consumer Issues
Topic: insights on living in the Blue Ridge Mountain region?
Replies: 27
Views: 4921

Re: insights on living in the Blue Ridge Mountain region?

My grandparents lived in Staunton VA for 20 years and loved it. And I loved visiting.
by alec
Thu Feb 22, 2024 5:17 pm
Forum: Personal Investments
Topic: 401K Fund Selection
Replies: 11
Views: 1728

Re: 401K Fund Selection

If you can use a cheap Fidelity TR fund in the brokerage link account, then using TR funds in both 401k accounts is very simple.
by alec
Thu Feb 22, 2024 10:38 am
Forum: Investing - Theory, News & General
Topic: 30-Year TIPS Auction Thursday 2/22/2024
Replies: 8
Views: 1943

Re: 30-Year TIPS Auction Thursday 2/22/2024

rossington wrote: Thu Feb 22, 2024 5:06 am
alec wrote: Wed Feb 21, 2024 8:01 pm Can’t wait!!! :sharebeer
Hi Alec,
Why can't you wait?
Is 2.18% real yield for 30 years exciting to you?
Or are you trading TIPS?
I'm about 10 years from retirement, and am starting to amass liability matching assets, which I'll ramp up over the next 10 years. I take the yields the market gives me, and as TIPS yields have increased over the last year to so, liability matching has gotten cheaper.

I don't trade TIPS or anything else.
by alec
Wed Feb 21, 2024 8:04 pm
Forum: Personal Investments
Topic: Vanguard Wellesley
Replies: 125
Views: 18646

Re: Vanguard Wellesley

jasperhobbs wrote: Wed Feb 21, 2024 7:01 pm Not looking to withdraw until 2027. Want a conservative fund that hopefully averages 4 or 5 percent. Have other more aggressive funds for growth. Just want portion of portfolio less risky.
For only 3 years, you may want to consider treasury notes, which are yielding 4-5%.
by alec
Tue Feb 20, 2024 5:42 pm
Forum: Personal Investments
Topic: the psychological value of "paycheck replacement." Any role for annuities or TIPS ladders?
Replies: 54
Views: 6529

Re: the psychological value of "paycheck replacement." Any role for annuities or TIPS ladders?

syc wrote: Tue Feb 20, 2024 4:47 pm tipsladder.com estimates I can replace the annual gaps from now til age 70 for a purchase price of about 600K--which conicidentally is the current value of my governmental 457(b) plan. Can I just extract that via a rollover to an IRA, then buy the TIPS?
Yes.
by alec
Sun Feb 18, 2024 7:44 pm
Forum: Personal Investments
Topic: Direct Indexing Worth It?
Replies: 19
Views: 2211

Re: Direct Indexing Worth It?

Here's a recent conversation about it:

viewtopic.php?t=400301
by alec
Fri Feb 16, 2024 8:12 pm
Forum: Personal Investments
Topic: Vanguard Wellesley
Replies: 125
Views: 18646

Re: Vanguard Wellesley

Cocoa Beach Bum wrote: Fri Feb 16, 2024 7:49 pm Maybe the fund's manager, Wellington Management, has adopted an ESG-oriented investment thesis which has recently fallen out of favor?
LOL. I highly doubt it. Rather, the higher dividend and large value stocks used in the fund have trailed the large growth stocks that have done well recently.
by alec
Fri Feb 16, 2024 6:34 pm
Forum: Personal Finance (Not Investing)
Topic: Is there a benefit to opening a 529 for food/books?
Replies: 14
Views: 1185

Re: Is there a benefit to opening a 529 for food/books?

I-Know-Nothing wrote: Fri Feb 16, 2024 4:48 pm Anyway, all that being said, we would still like to pay for books and food while she is in college. I’m estimating that this would cost at least $4k a year. Is it worth it to start a 529 for just these expenses, and with less than 12 years until she is in college? We don’t have state income tax. I understand that we could now roll excess 529 funds (up to $35k) into a Roth for her.
I think the short answer is yes.
by alec
Fri Feb 16, 2024 6:16 pm
Forum: Personal Investments
Topic: Portfolio Analysis - 401K questions and just overall how am I doing
Replies: 20
Views: 2221

Re: Portfolio Analysis - 401K questions and just overall how am I doing

Any reason you’re not using some CA muni bond funds in the taxable account?
by alec
Fri Feb 16, 2024 8:51 am
Forum: Personal Investments
Topic: Vanguard Wellesley
Replies: 125
Views: 18646

Re: Vanguard Wellesley

If you want a balanced fund that focuses on large value stocks and more corporate bonds, then this fund is fine because the fund sticks to its strategy.
by alec
Thu Feb 08, 2024 8:38 pm
Forum: Investing - Theory, News & General
Topic: Avantis Core Fixed Income ETF (AVIG)
Replies: 19
Views: 2029

Re: Avantis Core Fixed Income ETF (AVIG)

Seems fine if you want a low cost actively managed bond fund that takes more risk than BND.
by alec
Mon Feb 05, 2024 7:59 am
Forum: Investing - Theory, News & General
Topic: 10-year yields
Replies: 3
Views: 717

Re: 10-year yields

My future consumption liabilities are affected by inflation, so I want to use mostly TIPS.
by alec
Sun Feb 04, 2024 5:04 pm
Forum: Personal Investments
Topic: Should We Change our AA?
Replies: 2
Views: 584

Re: Should We Change our AA?

Seems rationale if you can stand it when the stock market eventually declines and you’re new portfolio goes down more than the old one.
by alec
Sat Feb 03, 2024 6:52 pm
Forum: Investing - Theory, News & General
Topic: Do Bond Funds Really Make Sense for the Long Run?
Replies: 399
Views: 39291

Re: Do Bond Funds Really Make Sense for the Long Run?

LaramieWind wrote: Sat Feb 03, 2024 6:35 pm I would love to buy TIPS but the majority of my money is in IRA/401K. Do that many BH have that much money in tax unfriendly accounts?
I use a TIPS fund in my 401k, and then individual TIPS in my IRA.
by alec
Sat Feb 03, 2024 5:00 pm
Forum: Investing - Theory, News & General
Topic: Treasury Note prices on secondary market
Replies: 10
Views: 1067

Re: Treasury Note prices on secondary market

With a bond fund the computation of the NAV change with rate rise is rather simple which is the duration x rate approximately. My question relates to how Treasury Notes prices on the secondary market change. Is there a formula to calculate this? Say I buy a current 3 year Treasury Note yielding 4.1%. Say 3 year rates rise to 5% in the next year and I need to sell some bonds. Is there a predictable way to tell in 12 months, with a rise from 4.1% to 5% in the 3 year rate, what the price on the secondary market would be? Say in month 34 of 36 the same thing happens, the 3 year rate rises from 4.1% to 5%, with just 2 months until I get the entire face value of the bond anyway the drop in the secondary market price should be much lower than ear...
by alec
Fri Feb 02, 2024 1:27 pm
Forum: Personal Investments
Topic: What do you suggest for risk free assets
Replies: 4
Views: 645

Re: What do you suggest for risk free assets

gavinsiu wrote: Fri Feb 02, 2024 12:54 pm
Doctor Rhythm wrote: Fri Feb 02, 2024 12:25 pm I think you hit the main options. If you are managing the money, pick whatever has the highest after tax yield. If she’s doing it, consider ease of use. I might just do HYSA with a linked checking account in that case.
Yes, moving the money to the HYSA has the highest impact. The other options does not seem worth it, but I am concern about rates falling.
Then a ladder of CDs seems appropriate.
by alec
Thu Feb 01, 2024 12:24 pm
Forum: Personal Consumer Issues
Topic: Best & Worst "Mid-Life Crisis" expenditures
Replies: 129
Views: 24660

Re: Best & Worst "Mid-Life Crisis" expenditures

livesoft wrote: Thu Feb 01, 2024 11:28 am I started my "OnlyFans" channel. So far, so good.
OnlyFUNDS
by alec
Tue Jan 30, 2024 5:52 pm
Forum: Personal Finance (Not Investing)
Topic: Recommended Course of Action - Age 77
Replies: 1
Views: 829

Re: Recommended Course of Action - Age 77

I wasn’t sure if the “my mutual funds” was all in a taxable account, but not sure you want a balanced fund in a taxable account if you have to start redeeming the i bonds to avoid a huge tax bill later on.
by alec
Tue Jan 30, 2024 12:05 pm
Forum: Investing - Theory, News & General
Topic: CalPERS Supplemental Contributions Plan - Does anyone have experience with this?
Replies: 7
Views: 1606

Re: CalPERS Supplemental Contributions Plan - Does anyone have experience with this?

From the CALPers deferred comp website looks to me like the SCP plan is just the after tax version of the pretax 457 plan, both run by Voya.

https://www.calpers.ca.gov/page/active- ... mpensation
by alec
Mon Jan 29, 2024 5:49 pm
Forum: Personal Investments
Topic: Portfolio Review 7 years prior to retiring
Replies: 9
Views: 1693

Re: Portfolio Review 7 years prior to retiring

For tax efficiency, Can you put the CDs and HYSA/Money Market inside the IRA and switch the stock index funds into the taxable account.
by alec
Sat Jan 27, 2024 8:05 pm
Forum: Personal Investments
Topic: Selling T-bills before maturity - how long - help
Replies: 3
Views: 579

Re: Selling T-bills before maturity - how long - help

LBK1 wrote: Sat Jan 27, 2024 7:41 pm
Geologist wrote: Sat Jan 27, 2024 6:40 pm Indeed, you have to transfer Treasuries out of Treasury Direct to a brokerage (not a bank) so you can sell them. How long until these T-bills mature? It is possible they would mature before you could transfer them to a brokerage and then arrange their sale.
They mature in July. Ideally I would like to access the funds much sooner than that. Is that possible?
Probably, but the speed probably depends on whether you hold the bills in the new or legacy system. The non-legacy system might be totally online instead of having to mail something in.

https://www.treasurydirect.gov/marketab ... ecurities/
by alec
Sat Jan 27, 2024 4:32 pm
Forum: Personal Investments
Topic: Deferred Fixed Annuities
Replies: 8
Views: 1112

Re: Deferred Fixed Annuities

Is this a taxable account, or inside the Roth? If the Roth, why not just by CDs at Fidelity?
by alec
Sat Jan 27, 2024 8:00 am
Forum: Personal Investments
Topic: Advice for a Shorter Term Goal
Replies: 6
Views: 701

Re: Advice for a Shorter Term Goal

dwickenh wrote: Sat Jan 27, 2024 7:56 am For your situation I agree that a 5 year treasury ladder makes sense. You are matching the need with the treasury duration and eliminating risk other than interest rates spiking after you build the ladder. As long as the original ladder meets your needs, I see no risk at all.

Dan
:thumbsup also, has the OP looked at the muni MM fund instead of the treasury MM fund (35% marginal tax bracket).