Search found 3293 matches

by dratkinson
Wed Apr 27, 2016 11:44 pm
Forum: Investing - Help with Personal Investments
Topic: 23 year old - needs Boglehead Infrastructure Wisdom
Replies: 18
Views: 1333

Re: 23 year old - needs Boglehead Infrastructure Wisdom

BH 23 year old – needs BH infrastructure wisdom ... I already opened a VBS rIRA. When you say split the TDF fund, is this selling it the $9K TDF and buying TSM, TISM, TBM,or is there some method that VBS does that makes this an easy transition? Yes. You call Vanguard, tell them to sell TDF, and to s...
by dratkinson
Tue Apr 26, 2016 11:01 pm
Forum: Investing - Help with Personal Investments
Topic: 3.5M taxable bonds
Replies: 38
Views: 3248

Re: 3.5M taxable bonds

BH 3.5M taxable bonds I think diversity will in fact help me sleep better at night. When in doubt, go 50/50!! So, 50/50 between intermediate tax exempt and total bond market. Note you are in 28% fed tax bracket. Compute your taxable-equivalent yields. VWIUX: 1.66/.72 (SEC yield/1-fed tax bracket) = ...
by dratkinson
Tue Apr 26, 2016 10:48 pm
Forum: Investing - Help with Personal Investments
Topic: 23 year old - needs Boglehead Infrastructure Wisdom
Replies: 18
Views: 1333

Re: 23 year old - needs Boglehead Infrastructure Wisdom

BH 23 year old – needs BH infrastructure wisdom Forgot to include in above. Preferred investing order (generic). --Employers' 401k/403b/457... to get the full employer's match. It's free money. --Personal IRA. ($5.5K) Best options. Roth is preferred (tax-free growth/withdrawals), but traditional is ...
by dratkinson
Mon Apr 25, 2016 8:55 pm
Forum: Personal Consumer Issues
Topic: Soapbox (car safety features)
Replies: 178
Views: 7718

Re: Soapbox (car safety features)

Reactive armor. I recall modern battlefield tanks use reactive armor (replaceable plates containing explosive) to destroy an incoming projectile before it can damage the tank. Expended plates must be replaced after use, but cheaper than replacing tank. See: https://en.wikipedia.org/wiki/Reactive_arm...
by dratkinson
Mon Apr 25, 2016 3:37 pm
Forum: Investing - Help with Personal Investments
Topic: 3.5M taxable bonds
Replies: 38
Views: 3248

Re: 3.5M taxable bonds

I read you linked topic. Your taxable plan (TSM, TISM, IT muni) sounds good to me. When do you need to withdraw your muni principle? If not within 5-10 years then I would not worry about it. Do you have any better use for the principle? If not, then I would not worry about it. Price stability. I not...
by dratkinson
Sun Apr 24, 2016 6:34 pm
Forum: Investing - Help with Personal Investments
Topic: How would you recommend I invest $500k to generate maximum monthly income with relatively low risk?
Replies: 24
Views: 3475

Re: How would you recommend I invest $500k to generate maximum monthly income with relatively low risk?

SPIA. An SPIA sounds good for generating monthly income during your lifetime, but the insurance company keeps the principle after payments stop. Do you want to turn the principle over to an insurance company, or do you prefer to pass it on to your heirs/charity? On the other hand, as mentioned abov...
by dratkinson
Sat Apr 23, 2016 5:45 pm
Forum: Investing - Help with Personal Investments
Topic: 23 year old - needs Boglehead Infrastructure Wisdom
Replies: 18
Views: 1333

Re: 23 year old - needs Boglehead Infrastructure Wisdom

Take home Income after 401K: $2,470 Expenses: $1,730 (Salary $42.5K/year) In everything below I look at this from the perspective of your retired self. What is best for your retired self? The Roth IRA is the holy grail* of investment accounts: tax-free growth/withdrawals and no RMDs. Should you giv...
by dratkinson
Fri Apr 22, 2016 7:39 pm
Forum: Investing - Help with Personal Investments
Topic: Hi Guys...
Replies: 8
Views: 1647

Re: Hi Guys...

... dratkinson, ... Right now I have most of my IRA in Vanguard Target Retirement 2045, but I want to split it into the basic component parts and get admiral shares so I can save on ER. I believe splitting a TDR (target date retirement) fund into individual components, for lower expenses, is a vali...
by dratkinson
Thu Apr 21, 2016 5:50 pm
Forum: Investing - Help with Personal Investments
Topic: Hi Guys...
Replies: 8
Views: 1647

Re: Hi Guys...

I find simple actions steps work best for me. To that end.... Preferred investing order (generic). --Employers' 401k/403b/457... to get the full employer's match. It's free money. --Personal IRA. ($5.5K) Best options. Roth is preferred (tax-free growth/withdrawals), but traditional is tax deductible...
by dratkinson
Thu Apr 21, 2016 5:00 pm
Forum: Investing - Theory, News & General
Topic: Bond Fund Strategy?
Replies: 26
Views: 2700

Re: Bond Fund Strategy?

I will probably be retiring in the next few years ... I am looking for some advice on allocation within the bond category. ... Would appreciate any suggestions, one way or another with some logic to back it up. ... More information is required to give a better answer. What are your fed/state tax br...
by dratkinson
Wed Apr 20, 2016 8:21 pm
Forum: Investing - Help with Personal Investments
Topic: First Time Portfolio Review, Please
Replies: 8
Views: 688

Re: First Time Portfolio Review, Please

Specific advice. Current Non-Retirement Assets (at least as of now) Taxable: 3% cash 7% Vanguard Total Stock Market Index Investor Shares (VTSMX) .17% 3% Vanguard FTSE Social Index Fund Investor Shares (VFTSX) .25% 7% Vanguard Health Care Fund Investor Shares (VGHCX) .34% Non-Taxable: 24% I Bonds So...
by dratkinson
Tue Apr 19, 2016 5:16 pm
Forum: Personal Finance (Not Investing)
Topic: How Did You File Your Income Taxes for 2015?
Replies: 101
Views: 3813

Re: How Did You File Your Income Taxes for 2015?

The queues at the post office are small now thanks to all those of you using eFile :D You had a queue? This afternoon I had to ring the bell for service. The whipper snapper who served me didn't even know it was tax day. Also stocked up with forever stamps at the new low price. For short postal lin...
by dratkinson
Mon Apr 18, 2016 10:56 am
Forum: Personal Consumer Issues
Topic: Whole house electric surge protector
Replies: 11
Views: 1137

Re: Whole house electric surge protector

We lived on the coast and in addition to hurricanes during summer it was very common to have late afternoon thunderstorms with pretty spectacular lightning so I installed one myself. We've moved since but I'm pretty sure this is the one: http://www.amazon.com/Leviton-51120-1-Panel-Protector-240-Vol...
by dratkinson
Sun Apr 17, 2016 6:35 pm
Forum: Personal Consumer Issues
Topic: Whole house electric surge protector
Replies: 11
Views: 1137

Re: Whole house electric surge protector

I installed a GE THQLSURGE several years ago (Home Depot). Looks like a 240V breaker. Recall it being ~$50 at the time. Was easy to install. Installed as a CYA, not because I'd been having problems. Hoping things stay that way.
by dratkinson
Sun Apr 17, 2016 6:27 pm
Forum: Personal Finance (Not Investing)
Topic: How Did You File Your Income Taxes for 2015?
Replies: 101
Views: 3813

Re: How Did You File Your Income Taxes for 2015?

OLT efile. Free last year and this. Can't believe all the years I spent researching, switching among, and paying TT, TC, and TA.
by dratkinson
Sat Apr 16, 2016 7:28 pm
Forum: Investing - Help with Personal Investments
Topic: Advice on what to do with inheritance
Replies: 17
Views: 2577

Re: Advice on what to do with inheritance

Suggest reading Wiki topic on "Managing a windfall": https://www.bogleheads.org/wiki/Managing_a_windfall For your taxable account, you can use stepped up basis to liquidate now. This would be great if you have a loss or small gain. But if you have a large gain and want to avoid paying taxe...
by dratkinson
Sat Apr 16, 2016 6:42 pm
Forum: Investing - Help with Personal Investments
Topic: Now i get it - mortgage payoff
Replies: 35
Views: 4992

Re: Now i get it - mortgage payoff

I don't see giving the bank a $1 to get a 25 cent (Or whatever marginal rate) savings in taxes a reason not to pay off a mortgage early. We all explore 401k, ira, roth, hsa, mortgage interest deductions etc with only objective - how to lower taxes even as our incomes are increasing. With time, thes...
by dratkinson
Fri Apr 15, 2016 2:49 am
Forum: Personal Consumer Issues
Topic: Stopping unwanted "junk" newspaper
Replies: 40
Views: 4589

Re: Stopping unwanted "junk" newspaper

Snow. Unwanted newspapers jamming snowblower auger. Multiple phone calls to stop. No success. Last newspaper twisted an auger in half. Angry letter promised legal action if any more received. Shortened and paraphrased letter. "You've ignored multiple phone calls to stop. Your leaving unwanted n...
by dratkinson
Thu Apr 14, 2016 5:57 pm
Forum: Personal Consumer Issues
Topic: Soapbox (car safety features)
Replies: 178
Views: 7718

Re: Soapbox (car safety features)

Was hoping this topic was about kids and soapbox car/derby racers. A Subaru is on my short list of next vehicles (Ford Escape currently winning due to surprisingly more headroom than Subaru:~5") so interested in reading about the safety feature in the above-base models. For current Subaru owner...
by dratkinson
Thu Apr 14, 2016 4:37 am
Forum: Investing - Help with Personal Investments
Topic: Need advice on bond fund
Replies: 10
Views: 955

Re: Need advice on bond fund

Assumption: low 7-figure nest egg = $1M. The short answer. (Three possible. Or mix for other options. ) Believe you could use VWLUX (LT natl muni adm) in taxable. Similar yield to TBM, but more after-tax income (higher TEY) and tax-bracket headroom . If you don’t want to take RMDs, then believe you ...
by dratkinson
Tue Apr 12, 2016 2:05 pm
Forum: Investing - Theory, News & General
Topic: considering a broad-index commodity fund in my portfolio
Replies: 14
Views: 909

Re: considering a broad-index commodity fund in my portfolio

Suggest reading Swedroe book on "alternative investments".
by dratkinson
Tue Apr 12, 2016 2:01 pm
Forum: Investing - Theory, News & General
Topic: Part of E-Fund in Low Risk Bonds?
Replies: 15
Views: 1067

Re: Part of E-Fund in Low Risk Bonds?

Roth IRA. You can use it as and EF. But while you can take the money out, you can't put it back. Meaning you give up tax-free market return on money withdrawn, from now until forever. I wouldn't do it. Savings bonds. My mid-week redemption took 2 days. Expect it to take longer with intervening week...
by dratkinson
Mon Apr 11, 2016 5:31 pm
Forum: Personal Consumer Issues
Topic: Best showerhead?
Replies: 38
Views: 6813

Re:

I just don't get the appeal for handheld showers. I can't stand them. This one would function perfectly as a standard broad-distribution showerhead, so no worries. HOWEVER, when I come in from mowing the lawn... A detachable handheld shower head also come in handy for cleaning the shower enclosure....
by dratkinson
Sun Apr 10, 2016 5:56 pm
Forum: Personal Consumer Issues
Topic: My current bicycle tour in Italy
Replies: 35
Views: 3260

Re: My current bicycle tour in Italy

In for the ride, figuratively.
by dratkinson
Sun Apr 10, 2016 5:27 pm
Forum: Investing - Help with Personal Investments
Topic: Please help me figure out what to do...
Replies: 16
Views: 2444

Re: Please help me figure out what to do...

General advice. Vocabulary. Tax-advantaged accounts = tax-deferred accounts + tax-free accounts. Retirement accounts are tax-advantaged accounts and all have annual contribution limits. Tax-deferred accounts (401k, TSP, IRA, brokerage/mutual fund account, ...) are taxed when the money is withdrawn ...
by dratkinson
Fri Apr 08, 2016 5:45 pm
Forum: Personal Finance (Not Investing)
Topic: Projecting taxes in retirement
Replies: 23
Views: 2226

Re: Projecting taxes in retirement

OP (original poster, original post), the forum would advice you to learn to do your own taxes. It's not that hard. And it's also much cheaper doing the work yourself than paying a CPA when you want to know the best path through multiple tax scenarios. Suggestion #1. Take your last tax return prepare...
by dratkinson
Fri Apr 08, 2016 3:02 pm
Forum: Investing - Help with Personal Investments
Topic: 19 year old looking for guidance and advice
Replies: 28
Views: 1800

Re: 19 year old looking for guidance and advice

... If you're interested in computer science, that's a degree worth pursuing even with loans. ... +1 I worked my way though college (full-time work, part-time student) and owed nothing when I graduated... ten years later. This was correct for me as I didn't have the mental discipline in my early 20...
by dratkinson
Fri Apr 08, 2016 2:30 pm
Forum: Investing - Help with Personal Investments
Topic: What Muni Bond to Buy VWALX or VWLUX?
Replies: 11
Views: 1245

Re: What Muni Bond to Buy VWALX or VWLUX?

A recent development, though, is that very low interest rates have made it potentially advantageous to put bonds in taxable and stocks in tax advantaged. And this is more of an issue for the OP, who pays 23.8% federal tax, not 15%, on qualified dividends and long-term gains. Munis cost the same in ...
by dratkinson
Thu Apr 07, 2016 7:08 am
Forum: Investing - Help with Personal Investments
Topic: 19 year old looking for guidance and advice
Replies: 28
Views: 1800

Re: 19 year old looking for guidance and advice

Live below your means. Don't try to keep up with the Jones, or your peers. Pay yourself first. A small amount* direct deposited into your savings each payday will not be missed. Concentrate first on building up a small emergency fund. When you EF is full, then use the incoming money for other goals....
by dratkinson
Thu Apr 07, 2016 6:22 am
Forum: Investing - Help with Personal Investments
Topic: What Muni Bond to Buy VWALX or VWLUX?
Replies: 11
Views: 1245

Re: What Muni Bond to Buy VWALX or VWLUX?

The HY fund contains an exposure (~20%) to AMT issues. Read the prospectus. Run a test tax return using Vanguard's performance data.

Idea. Search forum for other recommended muni funds (not Vanguard's) that can be purchased as an ETF. I couldn't give up $75/trade (or $8) for convenience.
by dratkinson
Wed Apr 06, 2016 5:56 pm
Forum: Personal Consumer Issues
Topic: Experience with COSTCO refilling ink cartrridges?
Replies: 8
Views: 1035

Re: Experience with COSTCO refilling ink cartrridges?

Another option: Cartridge World. Ask them to check the cartridge is working correctly before you leave the store.

No nothing about cost difference between COSTCO and CW.
by dratkinson
Tue Apr 05, 2016 8:06 pm
Forum: Personal Finance (Not Investing)
Topic: TaxAct - Tax exempt dividends not correct on State return
Replies: 6
Views: 615

Re: TaxAct - Tax exempt dividends not correct on State return

Recall this is called an "override". For natl muni funds, if you want to deduct the small amount attributable to your state, then you must override the imported amount on your state return. Recall TA did not complain about this override.
by dratkinson
Tue Apr 05, 2016 5:36 pm
Forum: Investing - Help with Personal Investments
Topic: Thought I was on the right track, but apparently not
Replies: 60
Views: 4622

Re: Thought I was on the right track, but apparently not

The bulk of your returns in the early stage of your investing career is driven by your savings rate, not your rate of return. On $250,000 of investable assets, a 5% return is only $12,500, and a 1% return is $2,500. I think you're in a good spot in terms of organizing everything, and just need to f...
by dratkinson
Tue Apr 05, 2016 5:11 pm
Forum: Investing - Help with Personal Investments
Topic: Help make a 3 fund portfolio from this
Replies: 8
Views: 799

Re: Help make a 3 fund portfolio from this

Bond allocation. ... Bond Fund (Citigroup BIG) er 0.07% Stable Value Fund (1-3 year treasuries) er 0.36% ... The Bond fund says it tracks Citigroup Broad Investment Grade Bond Index The stable value 1 year is yield is 2.19% 3 year was 2.30% ... Recall Total Bond Market index fund is ~1/3 each: trea...
by dratkinson
Mon Apr 04, 2016 7:03 pm
Forum: Investing - Help with Personal Investments
Topic: Muni Bonds for My Tax Level?
Replies: 25
Views: 2869

Re: Muni Bonds for My Tax Level?

... So what you will see in a period of increasing rates is duration itself increasing as we move higher up the curve, leading to higher and higher losses vs an intermediate fund. TFB has a good explanation from 2013 when we saw this: http://thefinancebuff.com/vanguard-long-term-muni-bond-funds-2.h...
by dratkinson
Mon Apr 04, 2016 4:17 am
Forum: Investing - Help with Personal Investments
Topic: Muni Bonds for My Tax Level?
Replies: 25
Views: 2869

Re: Muni Bonds for My Tax Level?

I didn't know this. I know in the bond book, he says that if you need to ensure you get the original value you invest you may want to split up investments into multiple higher quality individual bonds since they will always become PAR on the maturity date. Correct. All you need to do to pick indivi...
by dratkinson
Sun Apr 03, 2016 8:24 pm
Forum: Investing - Help with Personal Investments
Topic: Muni Bonds for My Tax Level?
Replies: 25
Views: 2869

Re: Muni Bonds for My Tax Level?

Is the yield the only thing that is tax free? If you sell and the NAV increases is that tax free or id's that taxed as capital gain? Yes, the SEC yield is the tax-exempt component. It is reported to you on 1099DIV** and documented on 1040 line 8b. If the fund internally sells individual bonds and t...
by dratkinson
Sun Apr 03, 2016 6:04 pm
Forum: Investing - Help with Personal Investments
Topic: Retirement Investing In Canada
Replies: 5
Views: 389

Re: Retirement Investing In Canada

See sister website as they are the experts on Canadian investing: http://www.financialwisdomforum.org/


Welcome.
by dratkinson
Sun Apr 03, 2016 5:44 pm
Forum: Investing - Help with Personal Investments
Topic: Muni Bonds for My Tax Level?
Replies: 25
Views: 2869

Re: Muni Bonds for My Tax Level?

I'm I correct the that SEC Yield is the percent paid annually in interest? So if I buy 10,000, I get 226$ each year in interest. It's been a little while since I read The Bond Book I remember there are many meaning of yield for Bonds. ... Assuming $226/yr/$10K (currently) is the way I've used SEC y...
by dratkinson
Sat Apr 02, 2016 6:16 pm
Forum: Investing - Help with Personal Investments
Topic: Muni Bonds for My Tax Level?
Replies: 25
Views: 2869

Re: Muni Bonds for My Tax Level?

Suggest: VWLTX (LT natl muni, investor shares). SEC yield: 2.26%. 2.26 / (1-.39) = 3.70% taxable-equivalent yield. See: http://www.zacks.com/funds/mutual-fund/quote/VWLTX 52-week price range: 45 cents currently. Thought I have seen it as high as ~90 cents. See: http://www.thestreet.com/quote/vwltx.h...
by dratkinson
Sat Apr 02, 2016 3:56 pm
Forum: Investing - Theory, News & General
Topic: CDs vs Tax Exempt ETF for emergency money
Replies: 16
Views: 1824

Re: CDs vs Tax Exempt ETF for emergency money

Notice the muni's TEY calculation works for comparing all taxable fixed income investments. So if you have an insured CD and muni with the same TEY, the forum would recommend the insured CD over the muni since it is less risky (insured). But I haven seen one of those in a while. The forum and recomm...
by dratkinson
Fri Apr 01, 2016 11:45 am
Forum: Investing - Help with Personal Investments
Topic: pulling the trigger
Replies: 28
Views: 2932

Re: pulling the trigger

I'd certainly sell all the losers today. and sell a corresponding amount of gain .... +1 Because in the year received, losses offset gains dollar-for-dollar. In following years, any carryover loss is used up at $3K/yr. So much better to offset losses and gains in the same year to more quickly get t...
by dratkinson
Thu Mar 31, 2016 6:55 pm
Forum: Personal Finance (Not Investing)
Topic: Semi retired - part time consulting - IRA contribution?
Replies: 6
Views: 514

Re: Semi retired - part time consulting - IRA contribution?

If in a low tax bracket, then tIRA tax benefit will also be low. Will avoiding/declaring $13K (yours + spousal IRAs) of income or saving/paying an additional $1950 in taxes (15% on $13K) change your federal/state/college programs' eligibilities? --If not, then I'd opt for the Roth IRA. Will you need...
by dratkinson
Thu Mar 31, 2016 6:03 pm
Forum: Investing - Theory, News & General
Topic: CDs vs Tax Exempt ETF for emergency money
Replies: 16
Views: 1824

Re: CDs vs Tax Exempt ETF for emergency money

Your points 4-5 are for me were muni funds can play a role... in this topic. How? 4) Capital gain/loss. Notice the 52-wk price spread for each muni fund candidate. For ST natl it's a few cents. For LT natl it's currently 45 cents, though I've seen it as high as ~90 cents. So, either way, not too muc...
by dratkinson
Wed Mar 30, 2016 6:05 pm
Forum: Personal Consumer Issues
Topic: I hate monthly payments...
Replies: 25
Views: 3881

Re: I hate monthly payments...

I believe this may be a form of mental accounting. So, if you don't like making monthly payment (writing checks, online bill pay), then don't. I stopped writing monthly checks when I converted as much as possible to ABP (creditors' automatic bill payment plans). Now they do all of the work. Previous...
by dratkinson
Wed Mar 30, 2016 5:25 pm
Forum: Investing - Help with Personal Investments
Topic: Non-coverd vs Covered Shares
Replies: 7
Views: 543

Re: Non-coverd vs Covered Shares

Jenmke, regrettably, I have one of those "vintage" taxable mutual funds my parents bought for me in the late 60's. Long before computers could keep track. Were I to sell today, neither I nor the IRS would have a clue how much LTCG tax I might owe. My solution: keep it in the estate and le...
by dratkinson
Wed Mar 30, 2016 5:13 pm
Forum: Personal Consumer Issues
Topic: Wet / Dry (shop) vac recommendations
Replies: 21
Views: 1262

Re: Wet / Dry (shop) vac recommendations

I just tried out my new RIDGID ... 1. POWER - I tried it out in my car and it did an awesome job sucking everything up. ... Read your instructions. If there is a paper filter, instructions may suggest removing it before using shop vac with liquid. (My cheap 5-gal ACE shop vac's recommendation.) :id...
by dratkinson
Tue Mar 29, 2016 4:28 pm
Forum: Investing - Help with Personal Investments
Topic: Quarterly taxes for 87 yr senior
Replies: 18
Views: 1249

Re: Quarterly taxes for 87 yr senior

If he can arrange for the taxes to be withheld, such as from a pension, social security, or IRA withdrawals, then he does not need to make any estimated payments. +1 (1) I over withhold (pension now, SS one day) to cover them plus annual investment distributions (assumed to be 110% of last year's)....
by dratkinson
Tue Mar 29, 2016 5:01 am
Forum: Investing - Theory, News & General
Topic: CDs vs Tax Exempt ETF for emergency money
Replies: 16
Views: 1824

Re: CDs vs Tax Exempt ETF for emergency money

"Don't be greedy, leave 10% for the other guy." I follow this advice by letting the other guy chase rates... and I lose <$500/year. But believe I more than make up for it by the market return earned on my other investments, and that's were my new money goes. I think that is a little harsh...
by dratkinson
Mon Mar 28, 2016 7:22 pm
Forum: Personal Finance (Not Investing)
Topic: Raid a Roth for second home down payment or US HELOC?
Replies: 4
Views: 555

Re: Raid a Roth for second home down payment or US HELOC?

You can take the money out of a Roth, but you can't put it back. You can, however, repay a ST HELOC loan. What would your retired self say? "You intentionally gave up tax-free market return (7%+) on $100K... from then until forever... to avoid ST interest on a ST loan? What were you thinking?&q...

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