Search found 2012 matches

by Chuck
Thu Apr 19, 2018 8:47 pm
Forum: Investing - Help with Personal Investments
Topic: Ally Bank No penalty CD for parking cash, is there a catch?
Replies: 93
Views: 16433

Re: Ally Bank No penalty CD for parking cash, is there a catch?

misterno wrote:
Thu Apr 19, 2018 6:19 pm
You dont need $5mm to invest in vmrxx
Do you have it available in a 401k or something?
by Chuck
Thu Apr 19, 2018 5:38 pm
Forum: Investing - Help with Personal Investments
Topic: Ally Bank No penalty CD for parking cash, is there a catch?
Replies: 93
Views: 16433

Re: Ally Bank No penalty CD for parking cash, is there a catch?

BlackcatCA wrote:
Thu Apr 19, 2018 3:49 pm
The SEC yield of VMRXX is 1.84% today, 1.78 earlier in the week.
Unfortunately I don't have $5M to invest, so I'm still stuck with the 1.78% SEC yield of the non-admiral fund.
by Chuck
Wed Apr 18, 2018 3:46 pm
Forum: Investing - Help with Personal Investments
Topic: Ally Bank No penalty CD for parking cash, is there a catch?
Replies: 93
Views: 16433

Re: Ally Bank No penalty CD for parking cash, is there a catch?

As mentioned in other threads, Vanguard's Prime Money Market fund is now yielding 1.78%.
by Chuck
Wed Apr 18, 2018 11:26 am
Forum: Personal Finance (Not Investing)
Topic: Broke up with my girlfriend for financial reasons: crazy?
Replies: 53
Views: 3073

Re: Broke up with my girlfriend for financial reasons: crazy?

One can get tied up talking about "financial goals" when they mean "life goals." It's certainly easier to be indignant when "your money is more important than me," but less so saying, "your goals for your life and future are more important than me." I'm not sure I can get behind the "Ask the Boglehe...
by Chuck
Tue Apr 17, 2018 10:14 am
Forum: Investing - Theory, News & General
Topic: Cash instead of bonds?
Replies: 56
Views: 5370

Re: Cash instead of bonds?

I mentioned in another thread that I had lunch with a wealthy retired man whose investment advice for retirees was to buy the S&P 500 and keep two year's expenses in cash (money market). No other mutual funds or bonds. I don't know about the man's non-stockmarket investments, though I assume he has...
by Chuck
Tue Apr 17, 2018 10:04 am
Forum: Investing - Theory, News & General
Topic: Why is the SEC yield the one that Vanguard displays?
Replies: 35
Views: 3246

Re: Why is the SEC yield the one that Vanguard displays?

So, if you are choosing a fund, the distribution yield is the yield you "would have gotten" and the SEC yield is the yield you "probably will get."
by Chuck
Mon Apr 16, 2018 4:29 pm
Forum: Personal Consumer Issues
Topic: Owning 3 vehicles
Replies: 27
Views: 2049

Re: Owning 3 vehicles

I wanted a pickup truck for occasional hauling, but that was super-expensive, so I bought a trailer to hook up to my minivan. It's harder to drive, but it's way cheaper than a truck.
by Chuck
Mon Apr 16, 2018 4:19 pm
Forum: Personal Consumer Issues
Topic: Owning 3 vehicles
Replies: 27
Views: 2049

Re: Owning 3 vehicles

Oh yeah, I forgot to add that the third car should not be new, as bloom2708 mentioned. I would have said something between 5-8 years old, in order to minimize depreciation. However, make sure every car gets driven at least once every week or two. I've had to get repairs on some of my vehicles after ...
by Chuck
Mon Apr 16, 2018 4:13 pm
Forum: Investing - Help with Personal Investments
Topic: S&P 500 Total Return ETF ?
Replies: 11
Views: 1018

Re: S&P 500 Total Return ETF ?

What are you trying to accomplish?
by Chuck
Mon Apr 16, 2018 4:06 pm
Forum: Investing - Theory, News & General
Topic: Cash instead of bonds?
Replies: 56
Views: 5370

Re: Cash instead of bonds?

That sounds like a fine plan. A money market fund "feels" like cash, but it's actually bonds, although very short-term. Vanguard's Prime MM is showing a 1.77% yield. Total bond market (what I assume when one says "bonds") yields 2.86%. So you're giving up yield to avoid volatility, but not tragicall...
by Chuck
Mon Apr 16, 2018 4:00 pm
Forum: Investing - Help with Personal Investments
Topic: S&P 500 Total Return ETF ?
Replies: 11
Views: 1018

Re: S&P 500 Total Return ETF ?

I believe US-based funds are required by law to distribute dividends to investors.
by Chuck
Mon Apr 16, 2018 3:56 pm
Forum: Personal Consumer Issues
Topic: Owning 3 vehicles
Replies: 27
Views: 2049

Re: Owning 3 vehicles

If you have space for parking, and you can handle the additional cost. Your vehicle expense will have two components. I don't know the financially literate way to discuss it, but it's essentially the cost to own (which is more or less constant with time), and the cost to drive (which is cost per mil...
by Chuck
Thu Apr 12, 2018 12:58 pm
Forum: Investing - Help with Personal Investments
Topic: SPIA Return - Am I calculating this correctly?
Replies: 72
Views: 2693

Re: SPIA Return - Am I calculating this correctly?

Can you please point me to DIY information on building a TIPS ladder. Paul Vanguard.com -> Find CDs and bonds -> Treasuries -> Treasury type = TIPS -> Search There are only 40 or so total TIPS issues, so put a checkmark in front of each one you want, and hit "Build Ladder." The quantities are all s...
by Chuck
Thu Apr 12, 2018 12:15 pm
Forum: Investing - Help with Personal Investments
Topic: SPIA Return - Am I calculating this correctly?
Replies: 72
Views: 2693

Re: SPIA Return - Am I calculating this correctly?

BTW, a 15-year ladder of TIPS is easy to build and would provide actual inflation protection (rather than a fixed 2% pa increase), for $688,250.
by Chuck
Thu Apr 12, 2018 10:58 am
Forum: Investing - Help with Personal Investments
Topic: SPIA Return - Am I calculating this correctly?
Replies: 72
Views: 2693

Re: SPIA Return - Am I calculating this correctly?

To make a fair comparison, I'll assume that the SPIA will cost me $667,000 6 months from now . Your number is right for today, actually. Great work! If I adjust the bonds to start maturing immediately, the total cost is $667,155. That was quite an oversight on my part. The SPIA cost of $664,458 is ...
by Chuck
Wed Apr 11, 2018 11:19 pm
Forum: Investing - Help with Personal Investments
Topic: SPIA Return - Am I calculating this correctly?
Replies: 72
Views: 2693

Re: SPIA Return - Am I calculating this correctly?

A 15-year ladder with a mishmash of zeroes and non-callable CDs costs $649,523. Because of the heavy reliance on strips, I chose to cluster the maturities around August. The results are not the best outside of trading hours. It took me about 25 minutes. This is about $15,000 cheaper than the SPIA. N...
by Chuck
Wed Apr 11, 2018 4:41 pm
Forum: Investing - Help with Personal Investments
Topic: SPIA Return - Am I calculating this correctly?
Replies: 72
Views: 2693

Re: SPIA Return - Am I calculating this correctly?

The 1-year zero has a 1.63% yield. This is significantly lower than the current 1-Year Treasury Constant Maturity Rate as reported by FRED: 1-Year Treasury Constant Maturity Rate : 2.09% (2018-04-10) I just saw 2019 and clicked. I don't know what month I picked, or whether it was a new issue or a s...
by Chuck
Wed Apr 11, 2018 4:39 pm
Forum: Investing - Help with Personal Investments
Topic: SPIA Return - Am I calculating this correctly?
Replies: 72
Views: 2693

Re: SPIA Return - Am I calculating this correctly?

There are 6-15 year CDs? Are these guaranteed by the FDIC, or are they exposed to a risk of default like corporate bonds? (I don't know much about CDs, as I'm Canadian. In Canada, the equivalent securities are only guaranteed if they have a maturity of 5 years or less). You can buy up to 30-year FD...
by Chuck
Wed Apr 11, 2018 4:18 pm
Forum: Investing - Help with Personal Investments
Topic: SPIA Return - Am I calculating this correctly?
Replies: 72
Views: 2693

Re: SPIA Return - Am I calculating this correctly?

I guess that " CDs for years 1-5 and treasuries for years 6-15 " was meant, instead. No, for maturities less than 5 years, treasuries are yielding more than CD's. For 5+ years, CD's earn more. When you want income every year, it's easy to adjust bond quantities to produce $48,000 each year. In earl...
by Chuck
Wed Apr 11, 2018 4:00 pm
Forum: Investing - Help with Personal Investments
Topic: SPIA Return - Am I calculating this correctly?
Replies: 72
Views: 2693

Re: SPIA Return - Am I calculating this correctly?

Complexity plays a role in my decision, too. SPIA=simple. Ladders=more complex. Of course. I only make about $100K per year, so a $40K savings is worth it if I spend less than 5 months on it. (It might take 2-3 days to set up the ladder.) But it sounds like you're doing a little better than I am.
by Chuck
Wed Apr 11, 2018 3:17 pm
Forum: Investing - Help with Personal Investments
Topic: SPIA Return - Am I calculating this correctly?
Replies: 72
Views: 2693

Re: SPIA Return - Am I calculating this correctly?

And since I'm enjoying the exercise... If you make a ladder of treasuries for years 1-5, and CD's for years 6-15, you can generate $48,000 per year spending only $545,000, so about $40,000 less. I could have done a better job with filtering out callable CD's, but now I'm more sure that I wouldn't wa...
by Chuck
Wed Apr 11, 2018 2:32 pm
Forum: Investing - Help with Personal Investments
Topic: SPIA Return - Am I calculating this correctly?
Replies: 72
Views: 2693

Re: SPIA Return - Am I calculating this correctly?

I priced a SPIA with a 2% annual increase and it came out to right at $667,000. Looks like the SPIA is a good value. :-? That wasn't my takeaway at all. The treasury ladder is $5,000 cheaper, and you can change your mind at any time. (If you need cash, you can still sell some of the bonds.) So, I w...
by Chuck
Wed Apr 11, 2018 2:22 pm
Forum: Investing - Theory, News & General
Topic: 2-year CDs at Vanguard and Fidelity Today
Replies: 153
Views: 17602

Re: 2-year CDs at Vanguard and Fidelity Today

Doc wrote:
Sun Apr 08, 2018 11:28 am
I don't like the news out of DC so I'm thinking of moving some intermediate corporates to short Treasuries, JIC.
Ironic that when the government does something stupid, you give them more money!
by Chuck
Wed Apr 11, 2018 2:19 pm
Forum: Investing - Help with Personal Investments
Topic: SPIA Return - Am I calculating this correctly?
Replies: 72
Views: 2693

Re: SPIA Return - Am I calculating this correctly?

And here is a ladder of zero-coupon treasuries with a rough 2% annual increase (rounded to the nearest bond) for expected inflation. It costs about $662K. Maturity Qty Cost 2019 48 47,229.60 2020 49 47,034.61 2021 50 46,758.00 2022 51 46,261.59 2023 52 45,928.48 2024 53 45,351.57 2025 54 43,809.66 2...
by Chuck
Wed Apr 11, 2018 2:05 pm
Forum: Investing - Help with Personal Investments
Topic: SPIA Return - Am I calculating this correctly?
Replies: 72
Views: 2693

Re: SPIA Return - Am I calculating this correctly?

I just went to Vanguard and bashed together a ladder of 15 zero-coupon treasuries between 2019 and 2033. The cost came out to $580,620.96. So you could save ~$7000 and do that. (Incidentally, it reported the average duration of the ladder at 7.32 years.)
by Chuck
Wed Apr 11, 2018 1:31 pm
Forum: Investing - Help with Personal Investments
Topic: Series I Bonds in April/May 2018
Replies: 36
Views: 3556

Re: Series I Bonds in April/May 2018

I'd suggest you don't agonize over something so insignificant. Flip a coin if it helps. There's no wrong choice.
by Chuck
Tue Apr 10, 2018 11:12 am
Forum: Investing - Theory, News & General
Topic: New CD Rates
Replies: 6
Views: 1711

Re: New CD Rates

My point being, if mom got a 30 year treasury in 1994 (for example) with a 7.5% coupon, it is not yielding 7.5%. It is yielding 2.675% like any other treasury maturing in 2024.
by Chuck
Tue Apr 10, 2018 10:38 am
Forum: Investing - Theory, News & General
Topic: New CD Rates
Replies: 6
Views: 1711

Re: New CD Rates

Ron Scott wrote:
Wed Mar 28, 2018 2:35 pm
My mother, who is one of those with a big chunk of the portfolio in treasuries paying 7.5%,
Where can I get some treasuries paying 7.5%?
by Chuck
Fri Apr 06, 2018 10:50 am
Forum: Personal Finance (Not Investing)
Topic: Filed an incorrect 1099-INT - do I *have* to file an amendment?
Replies: 7
Views: 433

Re: Filed an incorrect 1099-INT - do I *have* to file an amendment?

If the IRS notices the error, they'll send you a correction and a check for $1. My guess is the error falls below some margin of error and will be ignored. I would not file an amendment for this.
by Chuck
Thu Apr 05, 2018 10:58 am
Forum: Personal Finance (Not Investing)
Topic: NY passes law to get around SALT limit
Replies: 47
Views: 5634

Re: NY passes law to get around SALT limit

I didn't mean to get into a debate about tax policy. One can go here ( https://taxfoundation.org/publications/state-local-tax-burden-rankings/ ) to look at how states compare. Living in NY, I have paid taxes since about 2001, and I have never seen my taxes go down. If there have been decreases befor...
by Chuck
Thu Apr 05, 2018 9:45 am
Forum: Personal Finance (Not Investing)
Topic: NY passes law to get around SALT limit
Replies: 47
Views: 5634

Re: NY passes law to get around SALT limit

+1. The 1-percenters have a lot of clout with state government, whatever the political leanings. But I don't remember this level of hue and cry when the feds limited mortgage interest deductions. I certainly don't remember states trying to game the tax rules to protect their citizens. In NY, the to...
by Chuck
Wed Apr 04, 2018 4:33 pm
Forum: Personal Finance (Not Investing)
Topic: NY passes law to get around SALT limit
Replies: 47
Views: 5634

Re: NY passes law to get around SALT limit

Also not sure if this helps. With $24k in standard deduction, would have to have lots of other deductions or very large property taxes to bother making payments to this "charity". [...] Many in NYS do pay more than $14k, in property tax, but certainly not all, and it remains TBD if you can get the ...
by Chuck
Wed Apr 04, 2018 12:30 pm
Forum: Investing - Help with Personal Investments
Topic: Large capital loss
Replies: 14
Views: 1025

Re: Large capital loss

As far as I know, there is no benefit at all to "getting rid" of your capital loss carryover. It has the highest value being deducted at $3K per year from income, and it will be there when you are selling assets because you need/want to, not because you want to accelerate the depletion of your carry...
by Chuck
Mon Apr 02, 2018 4:23 pm
Forum: Local Chapters and Bogleheads Community
Topic: Albany, NY chapter
Replies: 2
Views: 345

Re: Albany, NY chapter

Someone may have intended to start one, but officially, there seems to be no Albany NY chapter.

https://www.bogleheads.org/wiki/Boglehe ... l_chapters
by Chuck
Mon Apr 02, 2018 3:15 pm
Forum: Investing - Theory, News & General
Topic: Larry Swedroe: Indexing Fuss Unwarranted
Replies: 16
Views: 2630

Re: Larry Swedroe: Indexing Fuss Unwarranted

YES!!

Saying that prices will go haywire because everyone is indexing is the same as saying that exploitable pricing anomalies will go unexploited.
by Chuck
Mon Apr 02, 2018 2:19 pm
Forum: Investing - Theory, News & General
Topic: What Are Your Thoughts On The Recent Bitcoin Bust? Is It Apart of the Boom/Bust Cycle or Is The CryptoCurrency Finished?
Replies: 129
Views: 9701

Re: What Are Your Thoughts On The Recent Bitcoin Bust? Is It Apart of the Boom/Bust Cycle or Is The CryptoCurrency Finis

Cryptocurrency is not valueless. Its intrinsic properties that have already been mentioned have value . However, evaluating a particular quantity of a particular currency is very hard. That is why I don't see the spectacular volatility as meaningful in any way considering the "worthiness" of any par...
by Chuck
Mon Apr 02, 2018 1:25 pm
Forum: Investing - Help with Personal Investments
Topic: Trading on vanguard
Replies: 6
Views: 409

Re: Trading on vanguard

Thanks to advice from this forum in the 2008-2009 time-frame, I'm sitting on $300,000 in unrealized gains in my taxable account. That's a lot of tax deferral for a supposedly "taxable" account. I may not have to sell anything for another 20-30 years.
by Chuck
Mon Apr 02, 2018 12:58 pm
Forum: Investing - Help with Personal Investments
Topic: Trading on vanguard
Replies: 6
Views: 409

Re: Trading on vanguard

Thanks, Taylor. Guess I managed to only read half the OPs already short-enough-to-read post!

No tax consequences. Duh.
by Chuck
Mon Apr 02, 2018 12:57 pm
Forum: Investing - Theory, News & General
Topic: Larry Swedroe: Indexing Fuss Unwarranted
Replies: 16
Views: 2630

Re: Larry Swedroe: Indexing Fuss Unwarranted

When I buy motor oil at Walmart, I don't necessarily check the price at Auto Zone, or NAPA, or anywhere else. I just assume there are enough other people checking prices and and shifting demand that I should be getting a "pretty good price." I am a price discovery freeloader in more than just mutual...
by Chuck
Mon Apr 02, 2018 12:51 pm
Forum: Investing - Help with Personal Investments
Topic: Trading on vanguard
Replies: 6
Views: 409

Re: Trading on vanguard

You can only exchange mutual funds. Any transaction involving an ETF, you will have to sell, then buy.

I hope you are not realizing a taxable gain on this transaction. (Edit: can't read.)
by Chuck
Mon Apr 02, 2018 11:20 am
Forum: Investing - Theory, News & General
Topic: What Are Your Thoughts On The Recent Bitcoin Bust? Is It Apart of the Boom/Bust Cycle or Is The CryptoCurrency Finished?
Replies: 129
Views: 9701

Re: What Are Your Thoughts On The Recent Bitcoin Bust? Is It Apart of the Boom/Bust Cycle or Is The CryptoCurrency Finis

Public key cryptography only works because certain types of mathematical problems are thought to be impossible to solve, such as factoring very large prime numbers. Quantum computers will be able to solve those mathematical problems, so public key cryptography will become breakable and then crypto-...
by Chuck
Tue Mar 20, 2018 1:08 pm
Forum: Investing - Help with Personal Investments
Topic: Vanguard Managed Payout Fund VPGDX
Replies: 25
Views: 3051

Re: Vanguard Managed Payout Fund VPGDX

Sandtrap wrote:
Tue Mar 20, 2018 1:04 pm
:oops:
:oops:
by Chuck
Tue Mar 20, 2018 11:47 am
Forum: Investing - Help with Personal Investments
Topic: Vanguard Managed Payout Fund VPGDX
Replies: 25
Views: 3051

Re: Vanguard Managed Payout Fund VPGDX

I'm surprised we got so many replies before someone brought up a SPIA. :) At age 68, you should be able to get a GUARANTEED FOR LIFE payout of 7% with an immediate annuity. So you could take 40% of your portfolio and set it aside for your grandkids, and put 60% in an immediate annuity, and get the i...
by Chuck
Wed Mar 14, 2018 3:42 pm
Forum: Personal Finance (Not Investing)
Topic: Trad IRA Conversion to Roth: Should I bother? [What is "earned income"?]
Replies: 23
Views: 1243

Re: What constitutes earned income for trad/Roth IRA contributions?

You don't have to take any deductions. Even if that were the case, why would you want to be taxed (in current year for Roth, or future year for traditional) on an amount that could be excluded forever from taxation by claiming a legitimate deduction? Presumably because the marginal tax rate would b...
by Chuck
Wed Mar 14, 2018 11:14 am
Forum: Investing - Help with Personal Investments
Topic: Can I take an 85+% pay cut for fun?
Replies: 80
Views: 9090

Re: Can I take an 85+% pay cut for fun?

If you work for 20 years at $35K, that's $700K. If you work 2.5 years at $275K that's $700K. So if changing jobs now is economically feasible, so is working for 2.5 years more and completely retiring.
by Chuck
Wed Mar 14, 2018 11:02 am
Forum: Personal Finance (Not Investing)
Topic: Trad IRA Conversion to Roth: Should I bother? [What is "earned income"?]
Replies: 23
Views: 1243

Re: What constitutes earned income for trad/Roth IRA contributions?

You wouldn't, but you can wait until April 15 of the following year to make your contribution.
by Chuck
Wed Mar 14, 2018 10:10 am
Forum: Personal Consumer Issues
Topic: Factory reset - Apps now incompatible
Replies: 10
Views: 913

Re: Factory reset - Apps now incompatible

Yes, I mean that it may not be advisable to use that old tablet at all for anything that should be secure. Then again, if you are not using public wi-fi, or downloading sketchy apps, you also may be just fine.
by Chuck
Tue Mar 13, 2018 3:40 pm
Forum: Personal Consumer Issues
Topic: Need Advice - Electric Hot Water Heater
Replies: 28
Views: 1812

Re: Need Advice - Electric Hot Water Heater

Re: 30 gallons is not enough: If the one person in the household loads and starts the dishwasher, then immediately runs to the laundry room to start some laundry, then runs to the shower, there may be an issue. (Dishwasher average of 6 gallons, 15 for laundry machine, 20 for shower.) Otherwise, it ...