Search found 10498 matches

by grok87
Thu Apr 27, 2023 5:48 am
Forum: Investing - Theory, News & General
Topic: Retirement in the early 2000s with 4% withdrawal: What the data show
Replies: 151
Views: 23386

Re: Retirement in the early 2000s with 4% withdrawal: What the data show

Thanks for taking the challenge, StillGoing. You may have done it with logs; at my skill level, brute force cybernetics seemed best, i.e., I just ran my little Bengen spreadsheet down enough rows until exhaustion occurred. I intended the Bengen model (withdraw at the end of the year); but I like your demonstration of how different the results would be with withdrawals at the beginning of the year. Guess that’s why the Excel PMT function has that toggle as its last argument. [snip] And finally, now we know why the mid-1960s were such a perilous time to embark on a program of 4% withdrawals. It’s not because inflation was high; inflation was higher in the 1970s, and the 4% rule was not threatened there. Rather, the mid-1960s were a perilous ...
by grok87
Wed Apr 26, 2023 11:45 am
Forum: Personal Consumer Issues
Topic: Europe River Cruises - Is Viking the Last Word?
Replies: 39
Views: 5709

Re: Europe River Cruises - Is Viking the Last Word?

AnnetteLouisan wrote: Sun Feb 05, 2023 2:20 pm Abercrombie & Kent has European river cruises with 24 guests.

Some university alumni associations also organize such cruises with cultural or historical themes/ instruction.

I haven’t done either but I’d consider them if I were considering cruises.

Also check out the website cruisecompete which is like the TripAdvisor for European cruises. Consider the Inn river through Austria. Cleaner and more lively than the Rhine and Danube.
thanks
by grok87
Wed Apr 26, 2023 6:42 am
Forum: Investing - Theory, News & General
Topic: Is asset allocation possible without looking at historical data
Replies: 169
Views: 10814

Re: Is asset allocation possible without looking at historical data

according to the talmud
https://en.m.wikipedia.org/wiki/Diversi ... e)#History
wrote: Diversification is also mentioned in the Talmud. The formula given there is to split one's assets into thirds: one third in business (buying and selling things), one third kept liquid (e.g. gold coins), and one third in land (real estate). This strategy of splitting wealth equally among available options is now known as "naive diversification", "Talmudic diversification" or "1/n diversification", a concept which has earned renewed attention since the year 2000 due to research showing it may offer advantages in some scenarios.
so
1/3 stocks, 1/3 unleveraged real estate, 1/3 cash (short term tips?)

cheers
grok
by grok87
Wed Apr 26, 2023 5:56 am
Forum: Personal Consumer Issues
Topic: Dying is Expensive!
Replies: 147
Views: 13871

Re: Dying is Expensive!

jebmke wrote: Wed Apr 26, 2023 4:52 am Nothing. Assets are sufficient. Also, I may suggest they just toss me into the marsh behind the house.
+1
by grok87
Mon Apr 24, 2023 6:12 am
Forum: Personal Consumer Issues
Topic: Safe areas to live north of Boston (Saugus, Lynn, Swampscott)
Replies: 56
Views: 5824

Re: Safe areas to live north of Boston (Saugus, Lynn, Swampscott)

My apology for the brief post. This is for my daughter. She will be working in Lynn and is looking to rent. What I read after googling about living in Lynn was not very encouraging so trying to find safer areas for her to rent. She will have a car. Safe area to live in is the first concern. Short commute is preferred but secondary to safety. She is ok with having a room mate or living in a co-op to begin with. I appreciate all responses and guidance. Thanks. https://www.quora.com/What-is-the-full-poem-of-Lynn-Lynn-the-city-of-sin "Lynn, Lynn the city of sin You never come out, the way you came in You ask for water, but they give you gin The girls say no, yet they always give in If your not bad, they won’t let you in It’s the damndest ...
by grok87
Sun Apr 23, 2023 4:27 pm
Forum: Personal Investments
Topic: VUSXX taxable for state and local now
Replies: 353
Views: 60091

Re: VUSXX taxable for state and local now

Artsdoctor wrote: Sun Apr 23, 2023 3:44 pm Unfortunately, I think we're all learning that the numbers which applied to 2022 may be very different than 2023. Jeff Sommer's article in the NYT poses some interesting questions. Reading between the lines, it's possible that money market managers are using repos heavily in order to avoid T-bills coming due during this debt ceiling issue. So there may be more forces playing a role here than was initially obvious.

https://www.nytimes.com/2023/04/21/busi ... funds.html
that's an interesting theory. personally i think Vanguard is just using the repos to manage the extraordinary inflows into VUSXX. Since repos have daily liquidity they are well suited for this.
by grok87
Tue Apr 18, 2023 8:17 am
Forum: Personal Finance (Not Investing)
Topic: Logistics of Executing Wills and Getting Attorney's Help
Replies: 25
Views: 2260

Re: Logistics of Executing Wills and Getting Attorney's Help

bsteiner wrote: Mon Apr 17, 2023 7:43 pm
Dead Man Walking wrote: Mon Apr 17, 2023 6:48 pm Many attorneys charge an hourly fee for smaller or uncomplicated estates. As the executor of my mother’s estate, I gathered the necessary information, found a buyer for the house, and auctioned the chattels. Her attorney arranged the transfer of the real estate and filed the necessary paperwork with the probate court. This was several years ago. The attorney’s hourly rate at that time was around $200.
Most lawyers work on a time basis regardless of the size of the estate.

$200 an hour sounds like it’s from the 1980s.
+1
by grok87
Mon Apr 17, 2023 7:31 pm
Forum: Personal Investments
Topic: VUSXX taxable for state and local now
Replies: 353
Views: 60091

Re: VUSXX taxable for state and local now

I'm skeptical that Vanguard will allow VUSXX to lose its state tax advantage for residents in CA, CT, and NY. They'd go from 100% exempt from state taxes to 0% exempt, which would be a very significant change. You never know so if you're uncomfortable with the gamble and you have a lot of cash, investing in municipal money market funds would be your best option. Fidelity going well above 50% may be a bad sign. It's at 91.81% https://fundresearch.fidelity.com/mutual-funds/summary/316341304. Discussed at https://www.bogleheads.org/forum/viewtopic.php?t=402751 i believe many people are pulling cash out of banks and putting it into money market funds. Repos help the funds manage that surge in funds as they have daily liquidity. cheers, grok
by grok87
Mon Apr 17, 2023 6:04 am
Forum: Personal Investments
Topic: VUSXX taxable for state and local now
Replies: 353
Views: 60091

Re: VUSXX taxable for state and local now

OSUperu wrote: Sun Apr 16, 2023 11:14 pm A bit of thread-jacking, but a few mentioned turning rolling through tbill/notes vs using this money market fund...

Is there a yield (and/or other) benefit for purchasing T bills/notes at auction vs the seemingly easier secondary market?
i'm not sure but the tbill auctions are very frequent. so you don't have to wait long to buy at auction
cheers
grok
by grok87
Sun Apr 16, 2023 6:05 am
Forum: Personal Investments
Topic: Puerto Rico Electric Power Authority bond
Replies: 3
Views: 654

Re: Puerto Rico Electric Power Authority bond

I generally invest in index mutual funds, and am pretty clueless when it comes to bonds. I would not have chosen to buy a bond in the Puerto Rico Electric Power Authority, but as it happens, I inherited a chunk from my grandfather several years ago. He had purchased quantity 95,000 with an annual coupon of 5%, expiring in 2037. I've left them alone until now. Obviously Puerto Rico has been through bankruptcy recently. Vanguard notified me of the opportunity to vote to "approve or reject the Modified Second Amended Title III Plan of Adjustment, dated March 1, 2023" -- and I have no idea whether I should vote, or how I should vote. Here's a link to some recent information on this particular bond: https://www.municipalbonds.com/bond...
by grok87
Sat Apr 15, 2023 10:56 am
Forum: Personal Consumer Issues
Topic: How to Select an "Induction" Stovetop
Replies: 67
Views: 6538

Re: How to Select an "Induction" Stovetop

I have had two now. They are great to cook on and clean up. My first was a GE Profile. Worked great when it worked. Many problems. I finally gave up and bought a Bosch. It has been flawless. Other than layout of the burners, they all do the same thing. I used Best Buy for the Bosch. I was pleasantly surprised by the level of service and would recommend them. do you have to buy new pots and pans? Most likely. The cookware needs to be magnetic for the induction process to work. If a magnet doesn't stick strongly to the pot/pan, it won't work. 90% of my cookware survived the transition to induction. The other 10% were given to the kids. thanks. did you buy any new induction cookware? if so does that work better than the 90% of your cookware t...
by grok87
Sat Apr 15, 2023 9:53 am
Forum: Personal Consumer Issues
Topic: How to Select an "Induction" Stovetop
Replies: 67
Views: 6538

Re: How to Select an "Induction" Stovetop

Snapper wrote: Sat Apr 15, 2023 9:31 am I have had two now. They are great to cook on and clean up. My first was a GE Profile. Worked great when it worked. Many problems. I finally gave up and bought a Bosch. It has been flawless. Other than layout of the burners, they all do the same thing. I used Best Buy for the Bosch. I was pleasantly surprised by the level of service and would recommend them.
do you have to buy new pots and pans?
by grok87
Fri Apr 14, 2023 5:44 pm
Forum: Investing - Theory, News & General
Topic: My Fido retirement meeting pushing me to SMA
Replies: 112
Views: 19570

Re: My Fido retirement meeting pushing me to SMA

I met with my current Fido advisor last week. He is pushing SMA for the equity portion of my rollover IRA at Fido. I have met with other advisors in the past, but this was the first time that an advisor suggested an SMA and an annuity. He ran some numbers that appeared to show that moving to an SMA would lower my expense fees. After reading through this thread, I am persuaded to decline the SMA proposal, but here are the particulars: The initial minimum investment in an SMA has been reduced from $200,000 to $100,000. The fees have dropped recently. My advisor was pushing that I invest $100K in Fido's international equity SMA, which currently has a fee of 0.70%, which I admit is attractive for an actively managed international fund. The wit...
by grok87
Fri Apr 14, 2023 2:00 pm
Forum: Personal Investments
Topic: VUSXX taxable for state and local now
Replies: 353
Views: 60091

Re: VUSXX taxable for state and local now

If the fund meets the 50% eligibility requirements, then the portion of the fund that is USGO is NY tax exempt. This is the common approach for most states. If you have seen my spreadsheet here: https://www.bogleheads.org/forum/viewtopic.php?p=7203860#p7203860, it will help you calculate those after tax rates. It seems that the portion that is USGO is changing on a regular basis. What happens if for part of the year it doesn't meet 50% eligibility requirements, or if for some part of the year 70% are treasuries and some part 90%. Is it the average for the year? Vanguard seems to publish only annual information. Could you buy VUSXX now expecting to be able to not include some portion on NY taxes but end up being fully taxable in NY because ...
by grok87
Thu Apr 13, 2023 8:34 pm
Forum: Personal Finance (Not Investing)
Topic: squared away: negotiating the medigap/advantage maze
Replies: 26
Views: 2514

Re: squared away: negotiating the medigap/advantage maze

The article linked in the OP seemed pretty much a nothingburger. Mostly just a few anecdotes. I think the (many) discussions here on Bogleheads have had more content, though there also seem to be plenty of people here who seem emotionally tied to various positions. My biggest hesitation to MA is that it is (or can be, due to medical underwriting) a "one-way" gate. Other than the first year, once you've gone to MA, you may be stuck with only MA choices for the rest of your life. You might start with a very good MA plan, but if that plan/system goes downhill (or you move), you may find your options at some point in the future much less desirable. I really mistrust systems with no-turning-back decision points. My wife and I face thi...
by grok87
Thu Apr 13, 2023 12:56 pm
Forum: Personal Finance (Not Investing)
Topic: squared away: negotiating the medigap/advantage maze
Replies: 26
Views: 2514

squared away: negotiating the medigap/advantage maze

https://crr.bc.edu/field-work/negotiating-the-medigap-advantage-maze/ Squared away has a new post out Negotiating the Medigap-Advantage Maze April 11, 2023 Mobile Share Email Facebook Twitter LinkedIn Choosing a Medicare option is one of the biggest decisions baby boomers make. Nearly half of U.S. retirees today have Medicare Advantage policies – that’s double the market share just 15 years ago. The reason for Advantage plans’ popularity is their low monthly premiums. But as enrollment surges, some of our blog readers who signed up for the plans have complaints. Advantage plans are complete insurance policies that operate much like employer health plans with copayments and deductibles. They have been heavily criticized for becoming increasi...
by grok87
Thu Apr 13, 2023 5:43 am
Forum: Investing - Theory, News & General
Topic: New I bonds not worth it; consider selling old ones at next reset
Replies: 251
Views: 57296

Re: New I bonds not worth it; consider selling old ones at next reset

Bloomberg article link https://www.bloomberg.com/news/articles/2023-04-12/i-bonds-interest-rate-for-2023-yield-is-expected-to-fall-below-4-in-may?srnd=premium&leadSource=uverify%20wall Because of the twice-yearly resets, the date investors purchase their I bonds can make a big difference to their returns. Bonds purchased before the end of April will provide six months of the prevailing rate of 6.89%. Then, six months from their purchase date, they’ll take on the estimated 3.8% rate for the subsequent six months. But someone who waits until May will take on the 3.8% rate for six months, and then the still-unknown rate, to be set Nov. 1, for the following six months. “If you only plan to hold the bonds for one to two years, it may be sens...
by grok87
Mon Apr 10, 2023 3:09 pm
Forum: Personal Investments
Topic: Transaction Costs to Sell Muni Bonds
Replies: 25
Views: 1753

Re: Transaction Costs to Sell Muni Bonds

So if we say an average of $6 per face value then for $400,000 fave value there would be $6 x 400 = $2400 in explicit transaction costs. But the implicit cost of executing at a large bid/ask spread would likely be much higher if I’m understanding comments here correctly? Does anyone know if the bond desk at Fidelity is likely to get better execution than UBS? In other words is it worth it to transfer the minis over to Fidelity and sell vs sell at UBS and transfer the cash? You are misunderstanding the situation. This is not like common stocks, where prices are reset instantaneously all day in an open auction market. Existing bonds are overwhelmingly traded only by DEALERS, who (as already noted) profit from the spreads. There is no such th...
by grok87
Sun Apr 09, 2023 11:42 am
Forum: Personal Investments
Topic: Vanguard TIPS price and gain.
Replies: 8
Views: 941

Re: Vanguard TIPS price and gain.

Django Ii wrote: Sun Apr 09, 2023 11:22 am Thanks DaveTH and grok87.

I knew the price adjusted for TIPS based on inflation data, I wasn't aware the cost basis changed too.
When I checked the Vanguard cost basis, it shows a $9763.15 cost basis with a current value of $$9858.25, a $95.10 gain. That is very different than what is shown on the balances page.
hmmm... welll the 9763.15 cost basis could be right even though it is lower than what you paid. when you buy a bond, you often are paying for accrued interest as well
by grok87
Sun Apr 09, 2023 11:08 am
Forum: Personal Investments
Topic: VUSXX taxable for state and local now
Replies: 353
Views: 60091

Re: VUSXX taxable for state and local now

indexfundfan wrote: Sun Apr 09, 2023 10:59 am Using repos allow the fund to respond quickly to rate hikes and to spikes in fund inflows, but this comes at the expense of state and local taxes exemption.
ah that's interesting thanks. i wonder if the spike in repos is because assets are pouring into this fund due to the issues in the banking system right now (SVB etc.)
cheers,
grok
by grok87
Sun Apr 09, 2023 10:54 am
Forum: Personal Investments
Topic: Vanguard TIPS price and gain.
Replies: 8
Views: 941

Re: Vanguard TIPS price and gain.

DaveTH wrote: Sun Apr 09, 2023 10:50 am
Django Ii wrote: Sun Apr 09, 2023 10:36 am My first time TIPS buy was the 5 yr Treasury auction in Oct. 2022. I paid $9954.68 for $10,000 face value.
Vanguard shows a current value of $10361.41 for this holding, with a gain of $297.72.
$10361.41 - $9954.68 = $406.73

Which number is correct? If Vanguard's $297.72 gain number is correct, please explain why.
Need more information. What is the Vanguard site showing as the cost basis?
+1
the cost basis for this bond purchase will go up over time for 2 reasons:
1) accretion to par
2) as the inflation adjustments are added to the principal.

cheers,
grok
by grok87
Sun Apr 09, 2023 8:16 am
Forum: Personal Investments
Topic: Transaction Costs to Sell Muni Bonds
Replies: 25
Views: 1753

Re: Transaction Costs to Sell Muni Bonds

backpacker61 wrote: Sun Apr 09, 2023 8:01 am I think step 1 should be to get everything moved to a low cost provider of your mother's choice (Fidelity, Schwab, or Vanguard). They each will have an experienced bond desk.
Then she can see what her options are.

How long until they mature?
i've sold individual munis at fidelity. typically there is no bid price for most munis at least not for small lots. whem i sold fidelity came back with buy offers and then i could decide whether to accept or not. the true cost of selling is the $1 per bond (ie per $1000 of face) plus the bid/ask spread. it's hard to know the bid/ask spread but if look on emma you cN get a feel for it. often around 1-2%
by grok87
Sun Apr 09, 2023 5:57 am
Forum: Personal Investments
Topic: VUSXX taxable for state and local now
Replies: 353
Views: 60091

Re: VUSXX taxable for state and local now

looks like VUSXX is now 41.5% in repos. Guess i'll be rolling tbills now.
by grok87
Fri Apr 07, 2023 12:20 pm
Forum: Personal Finance (Not Investing)
Topic: Nursing Home vs Assisted Living
Replies: 46
Views: 5122

Re: Nursing Home vs Assisted Living

since there was some mention of medicaid i thought i would mention the medicaid 5 year look back rule for those not aware
by grok87
Mon Apr 03, 2023 4:37 am
Forum: US Chapters
Topic: Nisiprius has 49,000 posts
Replies: 112
Views: 15001

Re: Nisiprius has 49,000 posts

alcon50 wrote: Sun Apr 02, 2023 10:08 pm Nisiprius never fails to satisfy.

49,000 posts represent a lot of work and thought.

Thank you for all you have taught me and all of us!

Alcon
+1
by grok87
Mon Apr 03, 2023 4:35 am
Forum: Investing - Theory, News & General
Topic: Social Security and Asset Allocation
Replies: 73
Views: 10870

Re: Social Security and Asset Allocation

GaryA505 wrote: Sun Apr 02, 2023 9:04 pm
grok87 wrote: Wed Sep 26, 2018 4:46 pm
The Wizard wrote: Wed Sep 26, 2018 1:33 pm
watchnerd wrote: Wed Sep 26, 2018 10:48 am
Jack FFR1846 wrote: Wed Sep 26, 2018 10:23 am How close are you to taking social security? Have you factored in the 25% reduction expected in 2034?
Is this official or just a guesstimate?
It's an official guesstimate...
It’s current law.

I.e. if the projections hold, which seems the most likely outcome, then social security benefits will be cut by the 25% (thought it was 23% actually). Speculating on whether new legislation might be passed to prevent this from happening are of course against forum rules...
Why do you think this is the most likely outcome? Do you know something nobaody else knows?
Hi Gary,
here is a more recent thread with a more active discussion.
https://bogleheads.org/forum/viewtopic. ... &start=200
cheers,
grok
by grok87
Sat Apr 01, 2023 2:51 pm
Forum: Personal Consumer Issues
Topic: [On-going Scams - Post them here]
Replies: 1372
Views: 166809

Re: [On-going Scams - Post them here]

There are a few posts above discussing what appeared to be fraudulent emails from Venmo. Here's a suspicious text I received the other day on my phone: Your Venmo Acc‌o‌unt has been locked. We recently received multiple failed login attempts to your acc‌o‌unt. Re͏͏c͏͏‌o͏͏‌v͏͏e͏͏r͏͏y͏͏ y͏͏‌o͏͏‌u͏͏r͏͏ a͏͏c͏͏c͏͏‌o͏͏u͏͏‌n͏͏t͏͏ i͏͏‌m͏͏m͏͏e͏͏d͏͏‌i͏͏a͏͏‌t͏͏e͏͏l͏͏y͏͏ c͏͏‌l͏͏i͏͏‌c͏͏k͏͏ l͏͏i͏͏‌n͏͏k͏͏ b͏͏‌e͏͏l͏͏‌‌l͏͏o͏͏w͏͏: http://venmo.com:911@s954837297.[scam URL redacted for here]/ven P͏l͏e͏‌‌a͏s͏e͏ t͏a͏‌k͏e͏ a͏c͏t͏i͏‌o͏n͏ o͏n͏ y͏o͏‌u͏r͏ a͏c͏‌c͏o͏‌u͏n͏t͏ w͏i͏t͏‌‌h͏‌‌i͏n͏ 4͏‌8͏ h͏‌o͏u͏r͏s͏ t͏‌o͏ a͏v͏‌o͏‌i͏d͏ p͏‌e͏r͏m͏‌a͏n͏‌e͏n͏t͏ s͏u͏‌s͏p͏e͏‌n͏s͏i͏‌o͏n͏. Regards, Venmo Ser‌v‌ice I don't have a Venmo account, so I didn't pay much attention to it. Bu...
by grok87
Sat Apr 01, 2023 5:10 am
Forum: Investing - Theory, News & General
Topic: Are Bogleheads rational about Social Security decisions?
Replies: 252
Views: 25902

Re: Are Bogleheads rational about Social Security decisions?

So reading the above comments, i think the title of this thread is more relevant than ever! I hope this thread doesn't become locked!

As per forum rules, let's not speculate about what changes in law should or should not have happened. Under current law, Social security will still be there for everyone. But the latest trustees report forecasts that starting in 2033 retirement benefits will be paid at 77%. To me that is a relevant actionable piece of information as i construct an investment portfolio for my retirement income needs.

cheers,
grok
by grok87
Fri Mar 31, 2023 12:12 pm
Forum: Investing - Theory, News & General
Topic: Are Bogleheads rational about Social Security decisions?
Replies: 252
Views: 25902

Re: Are Bogleheads rational about Social Security decisions?

new trustees report is out https://www.ssa.gov/oact/TRSUM/
trust funds are now projected to run out a year earlier in 2033 at which point benefits would be paid at 77% under current law (down from 78% in last trustees report)

i will be adjusting my personal projected retirement cashflow model accordingly. in terms of actionability, on the margin this makes me want to buy more tips/ibonds to fill in the gap.

cheers
grok
by grok87
Fri Mar 31, 2023 10:10 am
Forum: Investing - Theory, News & General
Topic: [Assessing Deflation Risk in VAIPX - Vanguard Inflation-Protected Securities fund]
Replies: 149
Views: 9680

Re: [Assessing Deflation Risk in VAIPX - Vanguard Inflation-Protected Securities fund]

As a holder of a few VAIPX shares I find this thread both interesting and informative. My thanks to the OP for initiating the thread. Aside from the question of whether fund management should publish deflation risk numbers and how Vanguard CSR's should respond when asked a question above their pay grade: other than the OP, do folks think sustained deflation is more than a theoretical concern? What is the probability sustained inflation will occur during, say, the next 50 years? And should it occur will the decrease in VAIPX share value be among our more serious concerns? My answer to these questions (for what it is worth) is 'no' and 'no'. The Federal government owes tens of trillions of dollars. Deflation is tough on debtors. The Federal ...
by grok87
Fri Mar 31, 2023 5:34 am
Forum: Investing - Theory, News & General
Topic: [Assessing Deflation Risk in VAIPX - Vanguard Inflation-Protected Securities fund]
Replies: 149
Views: 9680

Re: Vanguard run-around on Fixed Income questions

Beensabu wrote: Thu Mar 30, 2023 9:09 pm
grok87 wrote: Thu Mar 30, 2023 3:46 pm
it's a good thought but i don't think it works. this calc would help you get "inflation-adjusted par".
I didn't realize that. Thank you!

Is the "face amount" in the annual report also inflation-adjusted? Or is that the original principal value? It's 78.2% of market value as of Dec 31, 2022.
i'm not sure.
by grok87
Thu Mar 30, 2023 3:46 pm
Forum: Investing - Theory, News & General
Topic: [Assessing Deflation Risk in VAIPX - Vanguard Inflation-Protected Securities fund]
Replies: 149
Views: 9680

Re: Vanguard run-around on Fixed Income questions

That floor is the original unadjusted par value of the individual bond. So should there not be a publishable number for a fund of such holdings, a number that I would think of as the deflation protecting floor for the fund (use VAIPX), calculated as weighted average of the individual bond holdings, each of which by necessity has a deflation-protecting floor? Without this number being available, fund holders have no way of assessing the deflation risk of a secondary TIPS fund at a given point in time, a number that is readily available for the individual TIPS bond. Look at "Weighted Price" on M*: https://www.morningstar.com/funds/xnas/vaipx/portfolio It's 95.26 as of end of Jan. So holdings were at ~95% of par value as of end of J...
by grok87
Thu Mar 30, 2023 2:53 pm
Forum: Investing - Theory, News & General
Topic: Consistent Yield & Duration to Help Choose TIPS Fund
Replies: 153
Views: 55309

Re: Consistent Yield & Duration to Help Choose TIPS Fund

Carrsson3 in this thread wanted to know the average index ratios for the various tips indices so as to be able to calculate the deflation exposure. viewtopic.php?p=7195686#p7195686

but the more i think about it the average index ratio may not be a sufficient statistic for this task. probably need to look at scenarios. eg net deflation of 5%, 10% etc

cheers
grok
by grok87
Wed Mar 29, 2023 11:27 am
Forum: Personal Investments
Topic: Vanguard wrong cost basis reporting
Replies: 18
Views: 2495

Re: Vanguard wrong cost basis reporting

inb4space wrote: Wed Mar 29, 2023 10:46 am They figured out the issue :happy Some shares for VTSAX were transferred to this account from another account. When that happened, it averaged my cost basis for shares already in the account with the transferred shares. They were able to fix the cost basis.
is this for a brokerage account?
by grok87
Wed Mar 29, 2023 11:27 am
Forum: Personal Investments
Topic: Vanguard wrong cost basis reporting
Replies: 18
Views: 2495

Re: Vanguard wrong cost basis reporting

inb4space wrote: Wed Mar 29, 2023 10:46 am They figured out the issue :happy Some shares for VTSAX were transferred to this account from another account. When that happened, it averaged my cost basis for shares already in the account with the transferred shares. They were able to fix the cost basis.
is this for a brokerage account?
by grok87
Tue Mar 21, 2023 11:17 am
Forum: Personal Finance (Not Investing)
Topic: Doing taxes each year is really hard, is it for you?
Replies: 127
Views: 10533

Re: Doing taxes each year is really hard, is it for you?

My thoughts are akin to what some others upthread have voiced:

1) Longtime Turbotax user. It definitely has bugs- you really need to confirm everything yourself. Latest example for me this year is 1099Qs.

2) Still worth doing yourself if you can, as you gain understanding of how tax system works and helps with tax planning.

3) I have made tax filing choices and investing choices geared towards increasing simplicty of taxes- i.e. not always optimizing for lowest tax. It's important to think long term- at some stage my mental facilities will decline.

cheers,
grok
by grok87
Sun Mar 19, 2023 5:25 am
Forum: Personal Investments
Topic: VUSXX to park chunk of cash?
Replies: 29
Views: 8589

Re: VUSXX to park chunk of cash?

zero_coupon wrote: Sun Mar 19, 2023 12:15 am
grabiner wrote: Wed Jan 04, 2023 11:09 am ...muni funds never have capital gains.
This isn't true in general, is it?
Apparently the Vanguard High Yield Tax-Exempt Fund distributed capital gains in 2021
https://investor.vanguard.com/investmen ... tributions

so i think this is a very rare instance of us getting to correct David. Rare as hen's teeth as the saying goes.
:)
cheers,
grok
by grok87
Sun Mar 19, 2023 5:19 am
Forum: Personal Investments
Topic: VUSXX to park chunk of cash?
Replies: 29
Views: 8589

Re: VUSXX to park chunk of cash?

Agree that Treasury interest income is always exempt from NJ state tax - regardless of whether a fund is a "qualified investment fund." I think last year the settlement (Federal money market) fund's income was around 70% from Treasuries. Whether the other 30% being subject to NJ state income tax is trivial depends upon who you ask/amounts invested. Easier to use VUSXX (100% Treasury) and never think about it. According to Vanguard,, VMFXX portfolio composition: Repo: ~59%, US Govt Obligations: ~39% , US T-Bills: ~2% https://investor.vanguard.com/investment-products/mutual-funds/profile/vmfxx#portfolio-composition So it is not very likely that 70% of VMFXX income is Treasury interest. State taxation of income from Repurchase Agree...
by grok87
Sat Mar 18, 2023 10:09 pm
Forum: Personal Investments
Topic: VUSXX taxable for state and local now
Replies: 353
Views: 60091

Re: VUSXX taxable for state and local now

VGSH is a fine fund, I own a small amount, but it is NOT by any measure comparable to VUSXX. It has a duration of approx. 2 years, it has much more price volatility. Only appropriate if you want to own longer term bonds. I a portion of my fixed income in VGSH and VTIP as part of a barbell approach with much longer term funds. VUSXX, is really for stuff I plan on spending in the next 6 mos. thanks. makes sense. i guess i was thinking of moving half of my vusxx over to vgsh or the admiral version. i really hate paying state taxes on what is supposed to be a treasury fund cheers grok Other options are an auto-roll of 3 or 6 T-bills or SGOV 6 mos. ETF. SGOV is actually a pretty interesting fund for pure play T-Bill investors, it fits a niche b...
by grok87
Sat Mar 18, 2023 10:02 pm
Forum: Personal Investments
Topic: VUSXX to park chunk of cash?
Replies: 29
Views: 8589

Re: VUSXX to park chunk of cash?

I don't know what "qualified investment fund" means in the context of NJ law. However, it is incorrect to state that Treasury interest is "always exempt from NJ state tax" when you receive it via a mutual fund. Treasury interest is state tax-exempt only if you receive it directly from the Treasury. Once it is passed through another entity like a mutual fund, it is only exempt from state tax if the state deems it exempt. Most states have but some have imposed requirements/restrictions. "Qualified investment fund" is a term in the NJ tax code. NJ does not tax capital gains on securities exempt from NJ tax (Treasury bonds and NJ munis). If a fund has at least 80% of its assets in such bonds, and is registered wit...
by grok87
Sat Mar 18, 2023 5:05 pm
Forum: Personal Investments
Topic: VUSXX taxable for state and local now
Replies: 353
Views: 60091

Re: VUSXX taxable for state and local now

what do y'all think about moving from VUSXX to the vgd short term treasury index fund? VGSH is a fine fund, I own a small amount, but it is NOT by any measure comparable to VUSXX. It has a duration of approx. 2 years, it has much more price volatility. Only appropriate if you want to own longer term bonds. I a portion of my fixed income in VGSH and VTIP as part of a barbell approach with much longer term funds. VUSXX, is really for stuff I plan on spending in the next 6 mos. thanks. makes sense. i guess i was thinking of moving half of my vusxx over to vgsh or the admiral version. i really hate paying state taxes on what is supposed to be a treasury fund cheers grok Other options are an auto-roll of 3 or 6 T-bills or SGOV 6 mos. ETF. SGOV ...
by grok87
Sat Mar 18, 2023 4:37 pm
Forum: Personal Investments
Topic: VUSXX taxable for state and local now
Replies: 353
Views: 60091

Re: VUSXX taxable for state and local now

retiringwhen wrote: Sat Mar 18, 2023 9:19 am
grok87 wrote: Sat Mar 18, 2023 8:55 am what do y'all think about moving from VUSXX to the vgd short term treasury index fund?
VGSH is a fine fund, I own a small amount, but it is NOT by any measure comparable to VUSXX. It has a duration of approx. 2 years, it has much more price volatility. Only appropriate if you want to own longer term bonds. I a portion of my fixed income in VGSH and VTIP as part of a barbell approach with much longer term funds.

VUSXX, is really for stuff I plan on spending in the next 6 mos.
thanks. makes sense. i guess i was thinking of moving half of my vusxx over to vgsh or the admiral version. i really hate paying state taxes on what is supposed to be a treasury fund
cheers
grok
by grok87
Sat Mar 18, 2023 8:55 am
Forum: Personal Investments
Topic: VUSXX taxable for state and local now
Replies: 353
Views: 60091

Re: VUSXX taxable for state and local now

what do y'all think about moving from VUSXX to the vgd short term treasury index fund?
by grok87
Sat Mar 18, 2023 8:49 am
Forum: Personal Investments
Topic: REIT’s in a taxable account
Replies: 16
Views: 2483

Re: REIT’s in a taxable account

LongMoney wrote: Fri Mar 17, 2023 1:59 pm REIT in taxable is the equivalent of leaving a sports car out in the snow/salt.

Roth would protect REIT dividends from tax obviously. REIT dividends in a regular brokerage will otherwise be taxed. The downside to putting it in a Roth is that it uses up valuable space that can be allocated to higher risk/reward alternatives. REIT in Roth could be beneficial if you have a dividend portfolio and youre retired or close to it. Just my .02 anyway
nah. reit yields are pretty low these days. see this post for example.
viewtopic.php?t=400082
by grok87
Sat Mar 18, 2023 5:18 am
Forum: Investing - Theory, News & General
Topic: Private Equity in your 401k? Be Afraid, be very afraid!
Replies: 39
Views: 10084

Re: Private Equity in your 401k? Be Afraid, be very afraid!

... http://online.wsj.com/article/SB10001424127887324096404578356700271878018.html ... In the latest effort by private-equity firms to broaden their customer base, Carlyle Group LP is letting some people invest in its buyout funds with as little as $50,000. ... Historically, access to these funds has been limited to pension funds, endowments and individuals wealthy enough to commit millions of dollars for years at a time. ... Private-equity firms are seeking to tap into the collective wealth of individual investors as pension funds—the cash cow that for decades has filled their coffers—face an uncertain future. ... Some private-equity executives long to offer their funds to typical workers through 401(k) savings plans, calling access to th...
by grok87
Fri Mar 17, 2023 9:09 am
Forum: Personal Investments
Topic: REIT’s in a taxable account
Replies: 16
Views: 2483

Re: REIT’s in a taxable account

i think reits can be fine in taxable accounts.
see this thread
https://seekingalpha.com/article/415833 ... le-account

also the adjusted yield of the vanguard reits fund is something lime 2.27% which is a lot lower than treasuries these days

viewtopic.php?t=400082
cheers,
grok
by grok87
Fri Mar 17, 2023 5:31 am
Forum: Investing - Theory, News & General
Topic: Private Equity in your 401k? Be Afraid, be very afraid!
Replies: 39
Views: 10084

Re: Private Equity in your 401k? Be Afraid, be very afraid!

Update to this thread from 10 years ago due to a PM i received. Here is one example i found where target date funds have made an allocation to private equity- in this case direct private real estate. https://www.urs.org/documents/byfilename/%7CPublic%20Web%20Documents%7CURS%7CDC%7CFactSheets%7CQK%7C%7Capplication%7Cpdf/ Private Real Estate (6.1%) is a fund of funds that allows investors to gain exposure to portfolios of direct real estate investments. The fund will invest primarily in existing private real estate funds, publicly traded real estate securities, and other real estate- related investments. These portfolios are comprised of institutional quality real estate across a broad range of real estate asset types. Investment Manager: Pru...
by grok87
Wed Mar 15, 2023 5:54 am
Forum: Investing - Theory, News & General
Topic: Vanguard reit yield and adjusted yield
Replies: 0
Views: 347

Vanguard reit yield and adjusted yield

Hi Bogleheads, Re the Vanguard REIT Index fund (VGSLX), i find the note about yield and adjusted yield very confusing https://personal.vanguard.com/us/FundsYieldDisclaimerREITFund?FundId=5123 Vanguard REIT Index Fund pays quarterly distributions consisting of dividend income, return of capital, and capital gains. However, the tax characteristics of these distributions cannot be determined until after the end of the year since the REITs in which the fund invests do not designate the composition (i.e., dividend income, return of capital, and capital gains) of their payments until the new calendar year. Since Vanguard cannot know the taxability of the portfolio's distributions during the year, unadjusted and adjusted effective yields are calcu...
by grok87
Sat Mar 04, 2023 7:41 am
Forum: Investing - Theory, News & General
Topic: Are Bogleheads rational about Social Security decisions?
Replies: 252
Views: 25902

Re: Are Bogleheads rational about Social Security decisions?

under current law, social security will only pay benefits at 77% starting in 2034. let's say someone is currently 59 and will turn 70 in 2034. is it rational to delay claiming till one is 70 in 2034 and only get 77%? or is it better to start claiming at age 62 and get 8 years of benefits at 100% before the 23% reduction kicks in? cheers grok This is indeed a complicating factor, and it is one that most people gloss over when discussing the decision on whether to take SS based upon a total return calculation. Certainly a reduction such as the one forecast by Social Security itself will push the breakeven age well into probable postmortem territory for most. In the face of uncertainty like this, the old "a bird in the hand is worth two ...