Search found 330 matches

by rm
Mon Jul 05, 2021 6:33 pm
Forum: Personal Finance (Not Investing)
Topic: Estate tax education and avoidance
Replies: 64
Views: 6664

Re: Estate tax education and avoidance

Thank you all.

BTW if parents just buy cars/house/travel for kids or transfer their houses to kids does anyone track this? It seems strange that US govt would need to be notified for transactions between parents and kids.
This seems like a very easy one time way to transfer assets to heirs.
by rm
Mon Jul 05, 2021 11:31 am
Forum: Personal Finance (Not Investing)
Topic: Estate tax education and avoidance
Replies: 64
Views: 6664

estate planning by gifting to kids - where to park money

[Thread merged into here --admin LadyGeek] We are thinking of some sort of estate planning. My criterion is to make it as simple as possible with least amount of paperwork/tracking (ie set it and forget it). I think gifting to our 2 kids to reduce estate tax bite seems like a good idea. Wanted to get your second opinions. As I understand I and my spouse can contribute 15K/kid every year and not worry about gift tax a) Where do you park this money. So thats 30K/kid. I don't want to put in bank account with 0% interest. My CPA suggested buy them a whole life policy. It'll be cheap and they won't have access to the funds to fritter away. I know whole life policy has bad rap (righfully so) but would it make sense in this case since kids cannot...
by rm
Sun Jun 06, 2021 5:46 pm
Forum: Personal Finance (Not Investing)
Topic: Cyber attacks increasing - do you have concerns about the security of your investment accounts?
Replies: 83
Views: 16537

Re: Cyber attacks increasing - do you have concerns about the security of your investment accounts?

I have substantial accounts at Fidelity and Vanguard. I was concerned mainly about someone robbing me of my money (via cybercrime etc). My assesment is that it is very very unlikely: When I asked my Fidelity they pointed me to this website: https://www.fidelity.com/why-fidelity/safeguarding-your-accounts In addition, if you own bank FIDC cash you have FDIC coverage. For SIPC brokerage coverage: The SIPC will cover up to $500,000 in securities, including a $250,000 limit for cash held in a brokerage account. For Excess brokerage coverage: Total aggregate excess of SIPC coverage available through Fidelity's excess of SIPC policy is $1 billion. And your retirement 401K & Rollover IRA is covered under ERISA. So Fidelity’s insolvency does no...
by rm
Sun May 23, 2021 10:21 pm
Forum: Personal Finance (Not Investing)
Topic: Accounting for 529 withdrawl for kids college
Replies: 29
Views: 3325

Accounting for 529 withdrawl for kids college

Hi My son is joining college this year in CA. I have vanguard 529 (Nevada) plan. I need to pay for (a) tuition, (b) dorm and (c) food/books. The university doesn't allow me to link my Vang 529 account with their administrative offices account. A) Can I just pay for (a),(b),(c) out of my bank checking account and take the money from 529 into my checking account. B) Do I get a form from Vang which also goes to IRS showing how much was withdrawn. I don't see any 529 plan requirements in 1040. So I presume its an honor system where I show IRS records in case they ever audit me. C) Is there a limit to how much I can withdraw from 529 plan. For (c) above I can just say I paid a large amount towards food and withdraw money tax-free. Oh one more th...
by rm
Sun Apr 25, 2021 1:13 am
Forum: Personal Finance (Not Investing)
Topic: Estate tax education and avoidance
Replies: 64
Views: 6664

Estate tax education and avoidance

With the potential decrease in estate tax exemption, whats the best way to pass on money to heirs.

We have large assets as (a) equity in taxable (b) IRA, roth IRA tax-deferred (c) 2 houses.

Is there a place to get unbiased information. I have most of my assets in fidelity and vanguard and have been DIY since the beginning.
by rm
Wed Mar 24, 2021 9:11 am
Forum: Personal Consumer Issues
Topic: benefit of vaccination with kids at home
Replies: 26
Views: 2025

benefit of vaccination with kids at home

We have this situation where a few members of the household already got vaccinated. However, one of the family members is younger than 16 years so will not be vaccinated for some time I guess.

We are so looking forward to travel and are okay with wearing masks (have been doing that throughout this crisis). However, we cannot travel because the kid still could contract the virus, theoretically.

Anyone has any thoughts on how to navigate such situations.
by rm
Thu Mar 18, 2021 9:46 pm
Forum: Investing - Theory, News & General
Topic: Investing in real estate during rising interest rates
Replies: 2
Views: 528

Investing in real estate during rising interest rates

Hi

Is there anyone on this forum who invests in real estate LLC firms. These firms pool in money from investors, buy big appartment complexes, renovate them and re-fi to return money and then sell them for a profit. I have done investments previously in them as a means of diversification.

I was planning to invest in such an LLC which seemed quite good but the rising interest rates is giving me pause. Till now have only invested when rates were going down ie the past years. The sponsors say that is not an issue. So asking others who may have gone through this before.

Thanks
by rm
Wed Jan 06, 2021 10:18 pm
Forum: Personal Investments
Topic: change from growth to value without having large tax hit
Replies: 2
Views: 419

change from growth to value without having large tax hit

Hi

I am planning to do a little more value tilt compared to growth while keeping my overall stock allocation at 65% constant. During the past year run-up I had bought quite a bit of S&P 500 and QQQ in my 65% allocation.

Any ideas on how to move the money from these to more value oriented funds such as VTV without incurring large tax hits. These are more short term gains.
by rm
Sat Jan 02, 2021 12:19 am
Forum: Personal Investments
Topic: Turning 50 in November - doing larger 401k/backdoor earlier
Replies: 2
Views: 430

Turning 50 in November - doing larger 401k/backdoor earlier

Since you can contribute more towards retirement accounts once you turn 50, can I start early in the year. I turn 50 in november but wanted to do the backdoor roth contribution in Jan (7000 vs 6000) or do I have to 6k and the additional 1K in November.
by rm
Sun Nov 01, 2020 10:18 am
Forum: Personal Investments
Topic: Making personal investments into mega back door roth IRA
Replies: 3
Views: 474

Making personal investments into mega back door roth IRA

My company is refusing to allow me to contribute more towards megaback door Roth IRA even though its below IRS limit

I switched jobs in the middle of this year. I had maxed out 19K 401k with previous employer.
With present employer, they allow you to contribute 19K and match 50% so 9.5K. IRS limits is 57K so they say you can only contribute 57K - 19K - 9.5K.
I tell them - look I can't do 19K in your plan so I can't avail of the 9.5K, can I at least contribute extra 9.5K and they refuse - they have put a hard limit to all employees at 28.5K

Can I directly contribute the 9.5K out of my personal checking account to the brokerage who is managing this account. This is with vanguard.
by rm
Sun Nov 01, 2020 10:08 am
Forum: Personal Finance (Not Investing)
Topic: About Ready to ReFi
Replies: 14
Views: 1240

Re: About Ready to ReFi

Ask them to not charge for closing costs. If its the same lender and you have good credit history, they may agree. I have done that successfully before by threatening them that a broker called me to offer the same rate but no points and no closing costs.

I have refinanced maybe 6-7 times from 2005 purchase and never ever paid any closing costs. Who knows next year the rates may be even lower.
by rm
Sun Nov 01, 2020 10:02 am
Forum: Personal Finance (Not Investing)
Topic: Example of PPP Forgiveness Form for Sole Proprietors with no Employees?
Replies: 45
Views: 4398

Re: Example of PPP Forgiveness Form for Sole Proprietors with no Employees?

Ummm...how do you get PPP loan if you have no employees.

I thought PPP was only if you had employees.

Last year (2019) my business made about ~12K. This is a consulting business where I worked out of my home. No employees. Could I apply for PPP. IF so, how much loan could I get that gets forgiven?
This year I will make ~0 because of covid.
by rm
Sun Nov 01, 2020 9:56 am
Forum: Personal Finance (Not Investing)
Topic: Retiring from a megacorp - timing considerations?
Replies: 24
Views: 3230

Re: Retiring from a megacorp - timing considerations?

For #2) There is no harm in being upfront in asking. Megacorps have a structured process to do so. In fact, I have heard of people who were open about the stress and desire to retire. The company asked them to do part-time and train their replacement before quiting. In return they got a large severance. This depends upon how good a relationship you have with your boss so that you can be open. I asked for severance after I resigned. My boss tried but there was no severance program going on otherwise I'm sure he would have fought to get me one because of the length of my service... In a megacorp, the boss doesn't loose if you get more money. In a small company watching every c, they worry that giving you extra money means less money for the c...
by rm
Tue Sep 08, 2020 1:50 pm
Forum: Personal Consumer Issues
Topic: combine rental and primary mortgages into one
Replies: 8
Views: 926

Re: combine rental and primary mortgages into one

I have a primary home and rental. I have paid off most of primary home so broker is not able to do re-fi (~212K) at lower rate with no point no fee loan. I have a large mortgage (~370K) on my rental but the re-fi rates on rental are bad. My broker suggested this... You can combine 2 loans to one loan and tie to primary property. Keep closing paper to show the cash amount amount it to payoff rental property. The portion of cash out amount can be applied to rental interest expense. Does this make sense. Are there tax implications of such a thing. I am not a lawyer, or an accountant or any thing even remotely related to those fields. I dont even have rental properties though have considered getting one. Having said that, I dont see how the ca...
by rm
Mon Sep 07, 2020 12:34 pm
Forum: Personal Consumer Issues
Topic: combine rental and primary mortgages into one
Replies: 8
Views: 926

combine rental and primary mortgages into one

I have a primary home and rental. I have paid off most of primary home so broker is not able to do re-fi (~212K) at lower rate with no point no fee loan. I have a large mortgage (~370K) on my rental but the re-fi rates on rental are bad.

My broker suggested this...
You can combine 2 loans to one loan and tie to primary property. Keep closing paper to show the cash amount amount it to payoff rental property. The portion of cash out amount can be applied to rental interest expense.

Does this make sense. Are there tax implications of such a thing.
by rm
Sat Aug 01, 2020 2:37 pm
Forum: Personal Consumer Issues
Topic: Who is your favorite fiction author and what is your favorite book of theirs?
Replies: 284
Views: 30518

Re: Who is your favorite fiction author and what is your favorite book of theirs?

Jeffery Archer
All his short stories are awesome. Some of his main books are also good - fast paced with a good arc (Prodigal daughter, not a penny more not a penny less)

Oscar Wilde
by rm
Tue Jun 09, 2020 10:58 pm
Forum: Personal Investments
Topic: Switching Jobs - Already maxed 401k
Replies: 42
Views: 4259

Re: Switching Jobs - Already maxed 401k

My CPA mentioned you can reverse the 401k contribution with your old employer in 2020. The old employer matching with stay with you.

Then when you contribute the 19500 with the new employer you can get the matching there as well.

This way you get 2 matching and not run afoul of IRS
by rm
Tue Jun 09, 2020 1:59 pm
Forum: Personal Consumer Issues
Topic: Upgrading iphone
Replies: 8
Views: 824

Upgrading iphone

I have an iphone6s...works fine. No complaints

I am curious if anyone upgraded from iphone6s to the latest iphone. What benefits did they see in their day to day life.

For instance, I don't care about water-proofing. However I will care about things that make me more productive (I use work email on iphone and have a heavy email/research website kind of techie job).

ps: Spending money is not a determining factor here. I am mainly looking for new things that people found out with the new iphones that they couldn't experience in a satisfying manner with older iphones.
by rm
Tue Jun 09, 2020 1:53 pm
Forum: Personal Consumer Issues
Topic: What fun car should I get in the $150k - $200k range?
Replies: 499
Views: 41431

Re: What fun car should I get in the $150k - $200k range?

Have you thought about renting exotic cars when you want them. There are quite a few websites which allow you to rent for a week. Then you can just use when you want and also try out different cars.
by rm
Tue May 26, 2020 11:37 am
Forum: Personal Consumer Issues
Topic: Develop scotch/wine palate quickly and effectively
Replies: 31
Views: 3293

Re: Develop scotch/wine palate quickly and effectively

OP is not looking to become a money burning snob. OP is looking for a vocabulary like this. There’s nothing wrong with learning how to describe the flavors you do and do not enjoy https://modernthirst.com/2014/08/06/the-bourbon-tasting-wheel/ https://www.thewinecellarinsider.com/wine-topics/wine-educational-questions/davis-aroma-wheel/ https://counterculturecoffee.com/learn/resource-center/coffee-tasters-flavor-wheel Thats very enlightening. I think thats what was missing. Need a common vocabulary to compare different scotch for myself at least The below seems the most quoted one for scotch (of course, there are many other variants https://malt-review.com/2015/09/10/whisky-flavour-wheels-and-colour-charts/ This seems simpler and probably w...
by rm
Tue May 26, 2020 10:30 am
Forum: Personal Consumer Issues
Topic: Pandemic buys that have improved quality of life?
Replies: 185
Views: 23260

Re: Pandemic buys that have improved quality of life?

bluesky50 wrote: Sun May 24, 2020 10:23 pm Steelcase Leap chair
Sit/Standing work desk
High quality leggings as work from home clothes
Looking for a good Sit/Stand work desk. Mind sharing your recommendation
by rm
Tue May 26, 2020 10:28 am
Forum: Personal Consumer Issues
Topic: Pandemic buys that have improved quality of life?
Replies: 185
Views: 23260

Re: Pandemic buys that have improved quality of life?

The roomba is a life saver...

A lot of food - started trying costco veggies since we could get deliveries. Now hooked onto them.

Learnt bodyweight exercise.
by rm
Tue May 26, 2020 10:19 am
Forum: Personal Consumer Issues
Topic: Develop scotch/wine palate quickly and effectively
Replies: 31
Views: 3293

Re: Develop scotch/wine palate quickly and effectively

SimonJester wrote: Tue May 26, 2020 9:12 am For scotch check out a glencairn whiskey glass, they really do enhance the nose of the dram vs other glasses.
Totally agree. Started using them a few weeks ago :beer
by rm
Tue May 26, 2020 10:17 am
Forum: Personal Consumer Issues
Topic: Develop scotch/wine palate quickly and effectively
Replies: 31
Views: 3293

Re: Develop scotch/wine palate quickly and effectively

oldfort wrote: Tue May 26, 2020 12:32 am
Starfish wrote: Mon May 25, 2020 11:58 pm So you are enjoying cheap wine and scotch now.
You want to put effort, time and money to become a snob and enjoy only expensive stuff so you can spend more in the future. :oops:
:D
This is spot on. The OP should go read the Millionaire Next Door.
I am not saying that I am going to buy expensive stuff because I want to spend more :-)

I am saying that even in less expensive scotch I'd like to taste the nuances. I just feel it will help me experience life fuller and richer.

So nothing to do with money, all to do with experiences
by rm
Mon May 25, 2020 10:35 pm
Forum: Personal Consumer Issues
Topic: Develop scotch/wine palate quickly and effectively
Replies: 31
Views: 3293

Develop scotch/wine palate quickly and effectively

Whenever we (used to :-)) meet socially we used to have wine or scotch. I enjoyed them especially scotch. However, I couldn't make out large differences between the various scotch (Except for the obvious - peaty vs non-peaty). The descriptions of the various scotch had orange, or spicy or nutty or fruity etc. but to me these aspects didn't jump out. Now I'd really like to develop a palate so I can pick up the nuances and enjoy scotch more deeply. I am curious how boglehead's developed their palate. I see many are sophisticated on this forum with strong point of views. A few options I had thought of a) Join a scotch club where they mail you smaller taster bottles and do blind tasting. b) Go to a scotch bar and just try various flavors side b...
by rm
Tue May 19, 2020 12:26 pm
Forum: Personal Consumer Issues
Topic: What is your most luxury/expensive hobby.
Replies: 264
Views: 27777

Re: What is your most luxury/expensive hobby.

What can you spend money on during covid lockdowns?

Travel used to be a luxury that I really spent money on.

Or adventure sports.

Now you can't travel. Any sports activities (eg. rafting, skydiving) are out because they require close contact.
by rm
Sun May 10, 2020 7:04 pm
Forum: Personal Investments
Topic: Changing jobs..multiple 401K match
Replies: 1
Views: 377

Changing jobs..multiple 401K match

I am changing employers.

With my previous employer I maxed out my 401K contribution already(19500). The company matches 5% of your income spread out over the year. So I have not maxed out the match with them.

I can enroll in my new companys 401k. They match 50% of your 401k contribution so a max of 19500/2 = 9750. If I contribute the 19500 with my new company and reverse it next year saying I contributed too much, can I get to keep the matching funds of 9750$.

There is no IRS rule on matching so I am not running afoul of any legalities here (I think). Anyone done that. I can revert the overcontribution of 401K before filing deadline of next year to prevent any penalties with IRS.
by rm
Thu Apr 16, 2020 11:58 pm
Forum: Personal Finance (Not Investing)
Topic: PPP - wellsfargo [can't process application]
Replies: 3
Views: 594

PPP - wellsfargo [can't process application]

I have my single member LLC with wellsfargo. They pre-approved me for PPP but when I filled all information on their portal they just said - we're sorry we can't process. Maybe they don't have funds. I don't know - it was a cryptic message and I had spent a lot of time typing all the info.

Anyways, I have only used them before. Can I apply with some other bank. Do I have my biz account to them before I Can apply through new bank. Is there any good and fast bank - I heard paypal can offer PPP but haven't tried that either.

Thx
by rm
Wed Apr 15, 2020 4:46 pm
Forum: Personal Finance (Not Investing)
Topic: Stimulus help for small businesses, sole proprietors, s-corp etc
Replies: 627
Views: 48519

Re: Stimulus help for small businesses, sole proprietors, s-corp etc

Theseus wrote: Thu Apr 09, 2020 9:23 am EIDL $10,000 forgiveness will be based on $1000 per FTE. And contractors will not be counted as part of the FTE calculation.
How does SBA know the FTE. I have seen other suggestions that you pay yourself personal check every month. But
a) That will be only $1000 since you are one FTE only
b) To start paying myself check now is useless. They will look at historical data. ITs not like I can go back and pay myself a check last year

So basically Sole proprietors get nothing.
by rm
Sun Apr 12, 2020 11:53 am
Forum: Personal Finance (Not Investing)
Topic: Information from CPA on all tax savings in CARES act etc
Replies: 4
Views: 1297

Information from CPA on all tax savings in CARES act etc

I found this incredibly useful and sharing with the community. I didn't know a lot of these facts and am thinking of availing of points 6, 8 and 9 ================================= 1. Paycheck Protection Program (PPP) SBA Loan: Payroll is the biggest expense and the number-one pressure for most businesses right now. Congress has enacted the PPP loan program, a great option to keep employees on payroll and keep your lights on. A small business of any type--S Corp, C Corp, LLC, sole proprietorship or independent contractor--with fewer than 500 employees qualifies. You will get a loan based on 2.5 times your average cost of monthly payroll, health insurance, and retirement benefits. Amount over $100,000 is not considered as payroll for any emp...
by rm
Fri Apr 03, 2020 10:27 pm
Forum: Personal Finance (Not Investing)
Topic: Stimulus help for small businesses, sole proprietors, s-corp etc
Replies: 627
Views: 48519

Re: Stimulus help for small businesses, sole proprietors, s-corp etc

Has anyone applied for EDIL. I find it quite confusing.

I have LLC that used to make money till last year and this year there is zero revenue. I have no employees and this is a side consulting business. I am not paying for any material or inventory though I do use home office.

a) Do I have to file this myself or can I have a tax guy file for me.
b) Can I use the money for lost income or do I have to state some other reasons

I also have an investment property and read somewhere that you can ask for lost rent as well.

Anyway, if anyone has personal experience or can point to a step by step website that would be really useful
by rm
Wed Apr 01, 2020 8:33 pm
Forum: Personal Investments
Topic: Mutual fund in margin or cash at fidelity
Replies: 5
Views: 534

Mutual fund in margin or cash at fidelity

Is there any disadvantage of holding mutual fund in margin vs cash account at fidelity.

The advantage I see is that I now have more margin buying power so I can do more options trading/sell short and fidelity can use the MF (mutual fund) in margin account to liquidate in case I have margin calls in the worst case.
Is there any disadvantage either in terms of money I get or time I have to wait before buying stocks. I presume I still get the dividend from the shares so I should get the same money whether the MF is in cash or margin. I presume if I want to buy new stock by selling my MF that is in margin its not an issue either and the process is as smooth as if the MF was in cash account.
by rm
Tue Mar 31, 2020 10:21 am
Forum: Personal Finance (Not Investing)
Topic: Refinance doesn't make sense if you are doing after long time period
Replies: 6
Views: 978

Refinance doesn't make sense if you are doing after long time period

Schwab had an interesting article which claims that even a .75% reduction in interest rate doesn't automatically make sense to re-finance. (assuming you didn't refi in the past ~10 years)

https://www.schwab.com/resource-center/ ... mortgage-0

What do you guys think?
In one case you are paying the monthly on only 20 years. In the other case you end up paying over 30 years so not just interest but even the total payment is more if you re-finance.
by rm
Mon Mar 30, 2020 12:53 pm
Forum: Personal Finance (Not Investing)
Topic: Airline refusing to issue refunds
Replies: 174
Views: 21435

Airline refusing to issue refunds

we had booked a spring break flight to nyc in feb early. united airlines

now we were ask for a refund. instead airline willing to only give credit. They re-routed the flights but said that's still a valid connection/flight.

Anyone have similar experience converting from credit to refund?
by rm
Sat Mar 28, 2020 9:00 am
Forum: Personal Finance (Not Investing)
Topic: Single member s-Corp and stimulus bill
Replies: 22
Views: 1040

Re: Single member s-Corp and stimulus bill

+1...
Mako52 wrote: Sat Mar 28, 2020 8:19 am Also interested in this.
by rm
Sat Mar 28, 2020 8:54 am
Forum: Personal Finance (Not Investing)
Topic: confused about stimulus bills for freelancers/moonlighters
Replies: 1
Views: 231

confused about stimulus bills for freelancers/moonlighters

I have a few businesses for which business have dried up. I don't have any employees - these were more like consulting companies as LLC.

Can I get any grant under the stimulus plan. I do have a full time job so can’t apply for unemployment insurance I think or can I? I don't have any collateral so not sure how I can get bank loan but it is making an appreciable dent to my income.

Who can advise maybe on or off this forum

Thank you
by rm
Sat Mar 21, 2020 3:00 pm
Forum: Personal Investments
Topic: How to turn off dividend re-investments on ETF for TLH in wellsfargo/fidelity
Replies: 3
Views: 655

How to turn off dividend re-investments on ETF for TLH in wellsfargo/fidelity

How do you turn off automatic dividend re-investment in Fidelity and wellstrade.

I am mainly doing this for VTI. TLH from VTI to ITOT but some other VTI from 2009 are showing gains so don't want to sell them. This is in wellstrade and its impossible to get through on the phone with them....
by rm
Sat Mar 21, 2020 2:58 pm
Forum: Investing - Theory, News & General
Topic: How did you TLH during this correction?
Replies: 65
Views: 5204

Re: How did you TLH during this correction?

Indexer99 wrote: Sat Mar 21, 2020 2:33 pm
rm wrote: Sat Mar 21, 2020 1:52 pm How do you turn off automatic dividend re-investment in Fidelity and wellstrade. I am mainly doing this for VTI. TLH from VTI to ITOT but some other VTI From 2009 are showing gains so don't want to sell them.

Also suppose you don't turn off auto re-investment, do you think anyone (IRS) will be able to monitor this.
Go to your holdings, click on your fund, and scroll down to lower left.
I am sorry I can't figure this out. This is with ETF and I can't find the location on the website. ITs impossible to get to someone on email/phone. I am just going to ask it in a seperate thread. Maybe someone has experience....Thanks.
by rm
Sat Mar 21, 2020 1:52 pm
Forum: Investing - Theory, News & General
Topic: How did you TLH during this correction?
Replies: 65
Views: 5204

Re: How did you TLH during this correction?

How do you turn off automatic dividend re-investment in Fidelity and wellstrade. I am mainly doing this for VTI. TLH from VTI to ITOT but some other VTI From 2009 are showing gains so don't want to sell them.

Also suppose you don't turn off auto re-investment, do you think anyone (IRS) will be able to monitor this.
by rm
Sat Mar 21, 2020 1:45 pm
Forum: Investing - Theory, News & General
Topic: Fed takes steps to address strains in Muni-debt market WSJ Saturday page B11
Replies: 2
Views: 438

Re: Fed takes steps to address strains in Muni-debt market WSJ Saturday page B11

I too have a significant amount in muni MF

a) The fed is only backstopping ultra-short muni bonds. This will do nothing for intermediate or long-term. For instance, my VWITX went down despite the announcement.
b) Muni funds have gone down before and will continue to fluctuate in NAV. You can view the last crisis in 2008-2009 as an example - If you want absolute safety go to ultra-short/MM.
by rm
Sat Mar 21, 2020 11:50 am
Forum: Investing - Theory, News & General
Topic: Math exercise with Total bond market - are markets irrational
Replies: 5
Views: 499

Math exercise with Total bond market - are markets irrational

I was wondering if this math is correct because according to this it seems market is pricing TBM for a depression like scenario. According to websites, 1% drop in rates should cause bonds to increase in value = 1% * maturity. TBM average maturity is 7 years So the NAV should have increased by 10% (interest rate cut was 1.5%) However, we only have 70% risk free in TBM. So it should have increased by 7%. Instead it declined by 10%. Giving a total delta of 17%. It declined because people think the commercial part of it will have bankrupties 30% of the TBM is in commercial grade. This means the market is saying - that > 50% (17/30) of commercial paper will become worthless. Am I doing this math correct? If so, doesn't that seem excessive...
by rm
Fri Mar 20, 2020 10:43 pm
Forum: Personal Investments
Topic: which Money market funds are 100% safe - so many choices?
Replies: 10
Views: 1926

Re: which Money market funds are 100% safe - so many choices?

I have never bought CDs at fidelity. Once I bought at my bank. Mutual funds just seem so much more convenient. Plus I can sell them at any time and buy some other mutual fund or vice-versa. I think CDs are more difficult since they are for a fixed term. Of course with interest rates so low maybe even if I break the CD it hardly matters.

Still I Would prefer to keep in mutual funds...
by rm
Fri Mar 20, 2020 10:30 pm
Forum: Personal Investments
Topic: which Money market funds are 100% safe - so many choices?
Replies: 10
Views: 1926

which Money market funds are 100% safe - so many choices?

If my wish is for 100% safety, which default money market funds in fidelity are safe and which can fluctuate.

spaxx - fidelity govt MM
fdrxx - fidelity govt cash reserves
fnsxx - fidelity MM institutional
ftexx - fidelity municipal MM
(MM => money market)

I think the first two are totally safe. And the remaining two are not 100% safe. But its confusing why fidelity has SPAXX and FDRXX. They both seem to mean the same thing no?

I recently read the article that govt committed to keep all MM whole. In that case is my above concern a moot point?
by rm
Tue Mar 17, 2020 7:21 pm
Forum: Personal Investments
Topic: Understanding REITs (VNQ) underperformance in low interest rate environment
Replies: 2
Views: 320

Understanding REITs (VNQ) underperformance in low interest rate environment

Needed some education here...

I am unable to understand how the REIT ETF has done so poorly even compared to the general market destruction. Its down 30% even though interest rates have been slashed.
2 questions
a) In an ideal world do REITs do better when interest rates go down.
b) Is there any other reason that REITs could have gone down ie. what other risks are there in such ETFs

I understand correlations breakdown during crises. I am trying to figure out if this something to hold onto/add to as markets normalize and starts to appreciate the lowering of interest rates or move into SPY etc. because I just never understood the risk in this asset class.

Before the crash I was 50-10-40 (50 stocks, 10 REIT, 40 bonds)
by rm
Sun Mar 15, 2020 5:32 pm
Forum: Investing - Theory, News & General
Topic: Why are bonds falling?
Replies: 236
Views: 9657

Re: Why are bonds falling?

Thank you for such an informative thread. Even though I lost money investing in MUNIs this has been priceless education for me. When I retire I will know the difference between treasuries and BND, MUB etc. and not repeat this mistake!
by rm
Fri Mar 13, 2020 8:49 pm
Forum: Investing - Theory, News & General
Topic: When to Tax Loss Harvest?
Replies: 50
Views: 4914

Re: When to Tax Loss Harvest?

One more question on Wash Sale - If I also hold VTSAX in my Roth IRA and I automatically reinvest dividends (say in March 2020), is that going to create a wash sale problem if the same fund of held in two accounts (Brokerage & Roth IRA)? YES! Turn off dividend reinvestment. That would be the worst kind of wash sale. Sorry, I don't understand what dividend re-investment has to do with TLH. If you hold the same fund in 2 accounts - one taxable and one tax deferred just sell the one in taxable at the loss. And TLH in tax-deferred doesn't make sense, right? If you leave dividend reinvestment on in your tax deferred for VTSAX, and sell your VTSAX in taxable, if your VTSAX in your tax deferred account auto reinvest dividends within 30 days o...
by rm
Wed Mar 11, 2020 10:36 pm
Forum: Investing - Theory, News & General
Topic: When to Tax Loss Harvest?
Replies: 50
Views: 4914

Re: When to Tax Loss Harvest?

anon_investor wrote: Sat Feb 29, 2020 6:27 pm
ForeverInvestorILL wrote: Sat Feb 29, 2020 6:21 pm One more question on Wash Sale - If I also hold VTSAX in my Roth IRA and I automatically reinvest dividends (say in March 2020), is that going to create a wash sale problem if the same fund of held in two accounts (Brokerage & Roth IRA)?
YES! Turn off dividend reinvestment. That would be the worst kind of wash sale.
Sorry, I don't understand what dividend re-investment has to do with TLH. If you hold the same fund in 2 accounts - one taxable and one tax deferred just sell the one in taxable at the loss.
And TLH in tax-deferred doesn't make sense, right?
by rm
Wed Mar 11, 2020 8:09 pm
Forum: Investing - Theory, News & General
Topic: Bad Experience with personal capital during this period
Replies: 1
Views: 439

Bad Experience with personal capital during this period

I have relied on personal capital to track my various accounts and it has been an awesome tool. Gave me an asset allocation snapshot as well.

However, during the volatile period like past 2 weeks I have notice huge issues
a) For my wells trade accounts it didn't record cash at all. So totally underestimated the cash/MM I had in the account
b) For fidelity the amount listed in personal capital were very different from the amounts I got by logging into fidelity site
e-trade, vanguard, schwab were all fine.

This was very strange and I don't know the solution. Did anyone else have this issues. I was relying on it to do my asset allocation re-balancing and the tool fell woefully short!
by rm
Sun Feb 23, 2020 5:15 pm
Forum: Personal Finance (Not Investing)
Topic: using HSA as investment account - do you need to store receipts?
Replies: 6
Views: 860

using HSA as investment account - do you need to store receipts?

I contribute to HSA every year but don't use it for medical expenses for that year. My plan is to just let it grow tax free and tax deferred so I may use it for any major expenses later in my life.

Given this intent is there any reason to save receipts of all your medical expenses over the years.