Search found 19545 matches

by grabiner
Thu May 25, 2017 8:47 pm
Forum: Investing - Help with Personal Investments
Topic: Target Date Funds in Taxable Account
Replies: 40
Views: 4374

Re: Target Date Funds in Taxable Account

If you kept the money in the 401(k) forever, this does say that munis in taxable would outperform taxable bonds in the 401(k) at current yields. However, you will leave this employer eventually, and be able to roll the 401(k) into an IRA, keeping the tax deferral while getting rid of the extra expe...
by grabiner
Thu May 25, 2017 8:38 pm
Forum: Investing - Help with Personal Investments
Topic: HSA Strategy for high income earners
Replies: 81
Views: 10170

Re: HSA Strategy for high income earners

My wife has access to a HSA with an employer contribution of 1500$ per year. She maximizes her 401K contribution to 18K per year and to also max out her HSA contribution. Regarding the use of the funds, I was thinking we could pay our medical bills up to 1500$ per year (employer contribution) with ...
by grabiner
Thu May 25, 2017 8:37 pm
Forum: Investing - Help with Personal Investments
Topic: HSA contribution
Replies: 9
Views: 1324

Re: HSA contribution

Thank you grabiner for the response! I understand the "fully vested" rule. As HSA money is something you would tap into any time a medical need is there, are we supposed to be conservative in this? Only for the money you are actually likely to tap. At least one year's deductible, and poss...
by grabiner
Wed May 24, 2017 8:34 pm
Forum: Investing - Help with Personal Investments
Topic: HSA contribution
Replies: 9
Views: 1324

Re: HSA contribution

These are no doubt some good funds(Atleast the vanguard ones) but as my employer is going through some financial struggles(filed bankruptcy), is it wise to keep investing in the HSA over here? My fear is all of a sudden, they will pull the plug and say " your hsa is ours..you cant take it now&...
by grabiner
Wed May 24, 2017 8:25 pm
Forum: Investing - Help with Personal Investments
Topic: Target Date Funds in Taxable Account
Replies: 40
Views: 4374

Re: Target Date Funds in Taxable Account

No. Bonds are better in tax-deferred accounts than in taxable accounts, if all else is equal. But since your 401(k) has an expensive bond fund, it is better for you to put bonds in taxable than in the 401(k). Sorry, I was a bit confusing. In the future, if I am able to indirectly get all my taxable...
by grabiner
Tue May 23, 2017 9:46 pm
Forum: Personal Consumer Issues
Topic: Does auto insurance still hike your rates for a claim?
Replies: 6
Views: 754

Re: Does auto insurance still hike your rates for a claim?

Your policy should have a "rating information," which says which types of claims will affect your rates, and how much. The rules for what can be counted varies by state, so you'll have to check what your policy does.
by grabiner
Tue May 23, 2017 9:41 pm
Forum: Personal Consumer Issues
Topic: Need advice from FF miles experts
Replies: 24
Views: 1703

Re: Need advice from FF miles experts

You should look at the value of tickets to you; how many dollars is the ticket worth for you? This is at most the cost, but it may be less if the frequent-flyer tickets require less convenient flights, or if you are making the comparison to first-class tickets which you would never buy on your own. ...
by grabiner
Tue May 23, 2017 8:55 pm
Forum: Investing - Help with Personal Investments
Topic: TLH - Six Month Rule and ETF's
Replies: 2
Views: 351

Re: TLH - Six Month Rule and ETF's

For long-term gains, the six-month rule isn't serious, although you have to know about it since your broker might miss it. (Vanguard missed it for me on a non-covered ETF sale.) The six-month rule causes some short-term losses to become long-term losses. But it doesn't matter whether you have short-...
by grabiner
Tue May 23, 2017 8:47 pm
Forum: Investing - Help with Personal Investments
Topic: Target Date Funds in Taxable Account
Replies: 40
Views: 4374

Re: Target Date Funds in Taxable Account

Is your recommendation for Bonds in taxable only if I have no room to put that money in 401k? No. Bonds are better in tax-deferred accounts than in taxable accounts, if all else is equal. But since your 401(k) has an expensive bond fund, it is better for you to put bonds in taxable than in the 401(...
by grabiner
Mon May 22, 2017 10:21 pm
Forum: Investing - Help with Personal Investments
Topic: Safe 5 percent ROI
Replies: 22
Views: 3446

Re: Safe 5 percent ROI

I may try a couple of vanguard funds and divy up the amount im investing in diffrent funds. I will keep you updated. Note that just "investing in different funds" does not give you diversification. You should start with a plan: how much will you put in bonds, and how much in stock, and ho...
by grabiner
Mon May 22, 2017 10:15 pm
Forum: Investing - Theory, News & General
Topic: BofA HSA dropping Vanguard Funds
Replies: 64
Views: 7071

Re: BofA HSA dropping Vanguard Funds

Our HSA is at BofA through my wife's employer. I'm glad we haven't reached our desired cash threshold to start investing yer, because we live in New Jersey, and liquidating would have been a state-taxable event. When you do start investing, you might want to hold Treasury funds (such as TIPS) in yo...
by grabiner
Mon May 22, 2017 10:13 pm
Forum: Investing - Help with Personal Investments
Topic: Target Date Funds in Taxable Account
Replies: 40
Views: 4374

Re: Target Date Funds in Taxable Account

[Now that I understand this, I actually have a Roth IRA space. You had mentioned early that Bonds are OK in taxable the 25% tax bracket. They would be better in taxable because of the higher ER in my 401K How did you calculate that bonds are better in taxable in my case? Bonds are probably better i...
by grabiner
Sun May 21, 2017 10:44 pm
Forum: Investing - Help with Personal Investments
Topic: Target Date Funds in Taxable Account
Replies: 40
Views: 4374

Re: Target Date Funds in Taxable Account

Yes if the stock market goes up, and no if it goes down. Isn't it better to have the stocks in the traditional IRA considering they are more likely to rise? Not necessarily. You have a risk tolerance, which is the reason that you hold some bonds and some stocks. If you prefer 5.5% expected returns ...
by grabiner
Sun May 21, 2017 9:39 pm
Forum: Investing - Theory, News & General
Topic: BofA HSA dropping Vanguard Funds
Replies: 64
Views: 7071

Re: BofA HSA dropping Vanguard Funds

Our HSA is at BofA through my wife's employer. I'm glad we haven't reached our desired cash threshold to start investing yer, because we live in New Jersey, and liquidating would have been a state-taxable event. When you do start investing, you might want to hold Treasury funds (such as TIPS) in yo...
by grabiner
Sun May 21, 2017 9:35 pm
Forum: Investing - Theory, News & General
Topic: This is how many fund managers actually beat index funds
Replies: 9
Views: 3035

Re: This is how many fund managers actually beat index funds

What about bond funds? I'm not sure I was able to under the link in the article in the original post. But this article says to avoid bond index funds. http://www.kiplinger.com/article/investing/T041-C007-S001-why-you-should-avoid-most-bond-index-funds.html The article actually doesn't say to avoid ...
by grabiner
Sun May 21, 2017 9:12 pm
Forum: Investing - Help with Personal Investments
Topic: Safe 5 percent ROI
Replies: 22
Views: 3446

Re: Safe 5 percent ROI

Welcome to the forum! There is no safe investment returning 4%; if there were, people wouldn't hold large amounts of money in safe investments earning 1%. You can get an expected return of about 4% with some risk. If bonds return 2.5% (about their current yield; note that even this has some risk) an...
by grabiner
Sun May 21, 2017 5:18 pm
Forum: Investing - Help with Personal Investments
Topic: Target Date Funds in Taxable Account
Replies: 40
Views: 4374

Re: Target Date Funds in Taxable Account

The way I prefer to look at it is the following: $10,000 in 401(k) $9950 in traditional IRA Bonds in 401(k): Bonds worth $11,000 less $55 fee. Stocks worth $14,925 in boom, $4975 in crash. Total $25,880 in boom, $14,930 in crash. Stocks in 401(k): Stocks worth $15,000 less $75 fee in boom, $5000 le...
by grabiner
Sun May 21, 2017 9:41 am
Forum: Investing - Help with Personal Investments
Topic: My Portfolio - Please provide input regarding tax efficiency
Replies: 11
Views: 968

Re: My Portfolio - Please provide input regarding tax efficiency

So one thing that I am still trying to understand more is how this will look in a year. I won't be contributing anymore to the regular IRA since I am maxing out the Roth and my new 401k will be growing also. How does I account for those changes? i.e. Wouldn't the bond % drop since my growth and con...
by grabiner
Sun May 21, 2017 9:38 am
Forum: Investing - Help with Personal Investments
Topic: My Portfolio - Please provide input regarding tax efficiency
Replies: 11
Views: 968

Re: My Portfolio - Please provide input regarding tax efficiency

I can contribute another 7% to my current 401k to max out the limit but I want to be able to access that money (for some crazy reason before 59) rather than dump it all in the retirement accounts. You can withdraw contributions from a Roth IRA without penalty at any time. If you convert your rollov...
by grabiner
Sun May 21, 2017 9:30 am
Forum: Investing - Help with Personal Investments
Topic: Lump Sum - Insured Parking Spot [for money]
Replies: 10
Views: 1225

Re: Lump Sum - Insured Parking Spot

Welcome to the forum! Keeping the money invested somewhere absolutely safe while you figure out how to deal with it is a good idea. The safest investments around are Treasury bills, which are backed by the full faith and credit of the US government. Rather than buying them direct, it might well be m...
by grabiner
Sun May 21, 2017 9:13 am
Forum: Investing - Help with Personal Investments
Topic: to refinance or not for a small monthy cost
Replies: 12
Views: 343

Re: to refinance or not for a small monthy cost

The decision whether to refinance is independent of the decision of how to invest the cash flow. Is it better to reduce your mortgage rate from 4.25% to 3.25%, at the cost of paying the money five years faster? Almost certainly yes. You will be paying $45 per month for 240 months, and then saving $7...
by grabiner
Sun May 21, 2017 8:54 am
Forum: Investing - Help with Personal Investments
Topic: FAN [First Trust Global Wind Energy ETF]
Replies: 17
Views: 667

Re: FAN [First Trust Global Wind Energy ETF]

Welcome to the forum! An ETF trades at the value of the underlying stocks. The traders who buy and sell those stocks set the prices of those stocks, based on what they know about the stocks, and on their tolerance for risk. They already know about the wind farms being built, and about investors such...
by grabiner
Sun May 21, 2017 8:41 am
Forum: Investing - Help with Personal Investments
Topic: Target Date Funds in Taxable Account
Replies: 40
Views: 4374

Re: Target Date Funds in Taxable Account

Let's consider this case(maybe this doesn't apply): 10k in 401k 10K in traditonal IRA Bonds in 401k go up to 11K and stocks in IRA go up to 15K after 1 year : I will have 26K - $55 of fee(11k *.5%) Bonds in IRA go up to 11K and stocks in 401 go up to 15K after 1 year : : I will have 26K - $75 of fe...
by grabiner
Sat May 20, 2017 10:38 pm
Forum: Investing - Help with Personal Investments
Topic: Why ETF settlement happens on T+3?
Replies: 22
Views: 1707

Re: Why ETF settlement happens on T+3?

Trading is different depending on account type. Cash accounts use margin and are taxable. These are called brokerage accounts. You can buy and sell stuff simultaneously in these accounts. Brokerage accounts can be cash accounts or margin accounts; your account is only a margin account if you arrang...
by grabiner
Sat May 20, 2017 10:31 pm
Forum: Investing - Help with Personal Investments
Topic: Target Date Funds in Taxable Account
Replies: 40
Views: 4374

Re: Target Date Funds in Taxable Account

I forgot to add another caveat. My 401k charges me a .5% allocation fee per year. So by keeping the higher growth stock funds, I will have to pay more allocation fees. That is a percentage cost, so you should just treat it as a higher expense ratio. In the 401(k), you will pay 0.59% on stocks and 0...
by grabiner
Fri May 19, 2017 10:48 pm
Forum: Investing - Help with Personal Investments
Topic: Feels Impossible to Invest with HSA in California?
Replies: 5
Views: 1020

Re: Feels Impossible to Invest with HSA in California?

Welcome to the forum! I am in a similar issue as the OP in this post. I'm in California and have a Bank of America HSA. It looks like fund options have changed and they no longer offer Vanguard funds, since dodecahedron's recommendation last year of using (VIPSX) to minimize California state taxes. ...
by grabiner
Fri May 19, 2017 10:28 pm
Forum: Investing - Help with Personal Investments
Topic: VFORX to start taxable account [Target Date Retirement 2040]
Replies: 8
Views: 536

Re: VFORX to start taxable account

Thank you very much for the sound advice. I will go VTSAX for long term investing in taxable. To balance my bond allocation would you recommend I-bonds? I am not well versed in bond investments. Perhaps I should just go 100% VTSAX? Thanks. You should have one allocation across all of your accounts....
by grabiner
Fri May 19, 2017 10:11 pm
Forum: Investing - Theory, News & General
Topic: I'm hearing conflicting advice on putting bonds in tax-protected accounts....?
Replies: 20
Views: 2394

Re: I'm hearing conflicting advice on putting bonds in tax-protected accounts....?

tax-deferred (401k, tIRA...): equities tax-free (Roth IRA,...): equities taxable: municipal bonds + equities I like this delineation of the three types of accounts: Tax-Deferred, Tax-Free, Taxable Would like to encourage the wiki folks to use these categories as well. It looks more tidy. The reason...
by grabiner
Fri May 19, 2017 9:32 pm
Forum: Investing - Help with Personal Investments
Topic: Why ETF settlement happens on T+3?
Replies: 22
Views: 1707

Re: Why ETF settlement happens on T+3?

Why ETF (at least in my broker) settles on T+3 days? Also, in general, do brokers allow you to sell your ETF before the settlement of the purchase of that same ETF? I mean, for instance suppose I buy some ETF of 5/10 and it is supposed to settle on 5/13 but I want to sell it on 5/11 (for a profit),...
by grabiner
Fri May 19, 2017 9:17 pm
Forum: Investing - Help with Personal Investments
Topic: Help with investing in my ROTH IRA
Replies: 7
Views: 628

Re: Help with investing in my ROTH IRA

Sorry for the delay in replying...have been busy. State: I live in PA, and work in OH few days of the week...travel every week. Am looking for jobs in PA. In terms of municipal bond funds, both PA and OH have state bond funds Unless you are spending so much time in OH that OH considers you a reside...
by grabiner
Fri May 19, 2017 9:03 pm
Forum: Investing - Help with Personal Investments
Topic: Target Date Funds in Taxable Account
Replies: 40
Views: 4374

Re: Target Date Funds in Taxable Account

I forgot to add another caveat. My 401k charges me a .5% allocation fee per year. So by keeping the higher growth stock funds, I will have to pay more allocation fees. That is a percentage cost, so you should just treat it as a higher expense ratio. In the 401(k), you will pay 0.59% on stocks and 0...
by grabiner
Thu May 18, 2017 10:23 pm
Forum: Investing - Help with Personal Investments
Topic: Target Date Funds in Taxable Account
Replies: 40
Views: 4374

Re: Target Date Funds in Taxable Account

Funny I am from NY and in 25% bracket,so would it better for me to buy a bond fund in my tax deferred (Federated Total Return Bond Fund FTRBX ER .37%) or buy a tax-exempt NY Muni fund such as the Vanguard new york tax exempt (.09% ER) in taxable? Since the bond funds in your 401(k) are more expensi...
by grabiner
Thu May 18, 2017 10:20 pm
Forum: Investing - Help with Personal Investments
Topic: Help, pay off house or invest?
Replies: 34
Views: 2400

Re: Help, pay off house or invest?

Good points, you gave me some ideas to think about. What do you think about putting a huge chunk to pay down house principal so instead of having 15 yrs left on mortgage, I would now have 8 years left? Btw right now my monthly mortgage payment is paying almost evenly between principal and interest....
by grabiner
Wed May 17, 2017 10:50 pm
Forum: Investing - Theory, News & General
Topic: Larry Swedroe: Skill Exists But It's Hard To Find
Replies: 6
Views: 1202

Re: Larry Swedroe: Skill Exists But It's Hard To Find

What this report suggests to me is that the newly added factors are not the correct measure of perfomance. There are many different ways to measure a factor; for example, growth and value can be measured by price/earnings, price/book, dividend yield, earnings growth, etc. For growth and value, price...
by grabiner
Wed May 17, 2017 10:27 pm
Forum: Investing - Help with Personal Investments
Topic: Target Date Funds in Taxable Account
Replies: 40
Views: 4374

Re: Target Date Funds in Taxable Account

From what I am gathering, the main issue with target funds in taxable, is that the bonds are taxable. The problem isn't that the bonds are taxable (taxable bonds are fine in a taxable account in the 25% or lower bracket), but that in most tax brackets, it is better to hold bonds in a tax-deferred a...
by grabiner
Wed May 17, 2017 10:21 pm
Forum: Investing - Help with Personal Investments
Topic: Help, pay off house or invest?
Replies: 34
Views: 2400

Re: Help, pay off house or invest?

1.House owe/ total balance @5.25% 15yrs left: $50 2.Car payments @3.00% 4yrs left: $15 If you itemize deductions, I would pay off the car in preference to the house, even if you can't refinance. The car loan is non-deductible, so the after-tax rate is almost as high. In addition, the car loan can b...
by grabiner
Wed May 17, 2017 10:06 pm
Forum: Investing - Help with Personal Investments
Topic: 100% VTSAX need advice [Vanguard Total Stock Market]
Replies: 65
Views: 6607

Re: 100% VTSAX need advice

I'm 47 years old and planning to move all my investments (approximately 950,000 US dollars) to VTSAX. I have tried Dividend Growth investing and I think I can sleep better by doing index fund. DGI is consuming a lot of my time.[ JLCollins in his book recommended a mix of VTSAX an VBLTX. Since I'm p...
by grabiner
Wed May 17, 2017 9:59 pm
Forum: Investing - Help with Personal Investments
Topic: Article: "Our emergency fund is exactly $0.00"
Replies: 73
Views: 7264

Re: Article: "Our emergency fund is exactly $0.00"

This is discussed on the wiki: Placing cash needs in a tax-advantaged account I follow the same strategy. If I need to replace my heat pump or car, I don't have enough cash directly in the bank. What I do have is enough stock in my brokerage account that I can sell it, and get cash in a few days. An...
by grabiner
Wed May 17, 2017 9:45 pm
Forum: Investing - Help with Personal Investments
Topic: Fund selection for unmatched 401k
Replies: 9
Views: 598

Re: Fund selection for unmatched 401k

Thanks, @grabiner. Took your advice and spent a couple of weeks researching this. I have a much better understanding. My current limitations are that I can not have a roth IRA and can only have a non-deductible IRA. With that in mind and a better understanding of my tax bracket/marginal rate (33% f...
by grabiner
Sun May 14, 2017 11:10 pm
Forum: Investing - Help with Personal Investments
Topic: how do you invest your HSA
Replies: 39
Views: 3106

Re: how do you invest your HSA

Wouldn't your investment approach track with your spending plan (goals) for this account? Mine was invested in a stable value fund because I was withdrawing from it on a regular basis. If I were creating a nest egg to pay for future expenses I would have invested it differently. If you are using yo...
by grabiner
Sun May 14, 2017 7:33 pm
Forum: Investing - Help with Personal Investments
Topic: how do you invest your HSA
Replies: 39
Views: 3106

Re: how do you invest your HSA

Is there an argument to be made for favoring bonds over stocks in an HSA, given their triple tax-free treatment? Once the money is in the HSA, it doesn't matter that it was tax-deductible when contributed. Money in the HSA and in a Roth IRA will have the same value when invested the same, so there ...
by grabiner
Sun May 14, 2017 6:36 pm
Forum: Personal Finance (Not Investing)
Topic: Pre-retirement paycheck and tax questions
Replies: 4
Views: 610

Re: Pre-retirement paycheck and tax questions

Welcome to the forum! 1) Feel like we have maybe too much in 401K. Should we build up “cash” with remaining year(s) of our employment and stop contributing to 401K (except to keep match)? We do have a plan to get to ~ 140K cash by mid 2018 with making no changes. Like to have other source of funds t...
by grabiner
Sun May 14, 2017 6:26 pm
Forum: Investing - Theory, News & General
Topic: WSJ: Most market anomalies academics have identified don’t exist
Replies: 53
Views: 5221

Re: WSJ: Most market anomalies academics have identified don’t exist

What could a Boglehead could have implemented back in 1993 or 2000 that would have doubled the market by this point? iShares S&P Small-Cap 600 Value (IJS) has been around since mid-2000. It has long been spoken favorably of on this board. It has more than doubled the S&P500 since 2000. All ...
by grabiner
Sun May 14, 2017 6:16 pm
Forum: Investing - Theory, News & General
Topic: American Funds beat out Vanguard Index over lifetime?
Replies: 62
Views: 6554

Re: American Funds beat out Vanguard Index over lifetime?

I've also noticed many funds report their growth of hypothetical $10000 performance without including expenses, which seems extremely deceptive. I mean, it's already in the past, they know how much expenses were charged. What's the point of reporting some growth performance (often beating the bench...
by grabiner
Sun May 14, 2017 6:09 pm
Forum: Investing - Help with Personal Investments
Topic: Why would anyone buy a condo (from an investment standpoint)
Replies: 41
Views: 5816

Re: Why would anyone buy a condo (from an investment standpoint)

Hi, Note: I posted this here because I am comparing buying vs. stock market investing (such as the simple 3-fund portfolio) I am looking at this building and the condos are selling fast and for all cash. However I can't figure out why would anyone buy a condo there as opposed to rent. Visited frien...
by grabiner
Sun May 14, 2017 5:56 pm
Forum: Investing - Help with Personal Investments
Topic: HDHP with HSA in Teachers' Contract
Replies: 6
Views: 469

Re: HDHP with HSA in Teachers' Contract

What questions would you ask in this situation and/or what information would you still require? The basic information that we have been given so far is below. 1. Deductible of $2000/$4000. District to pay $1000 towards deductible. 2. Max out of pocket is $4000/$8000. 3. 80/20 copayment after deduct...
by grabiner
Sun May 14, 2017 5:48 pm
Forum: Investing - Help with Personal Investments
Topic: managed vs indexed intermediate term bond funds
Replies: 3
Views: 468

Re: managed vs indexed intermediate term bond funds

The returns of a bond fund are determined very well by its risks and costs. Managed versus index doesn't matter that much when you compare funds with similar holdings. And the Fidelity Total Bond Fund does take extra risks, as it holds about 15% in junk bonds. The risk of bond funds is important bec...
by grabiner
Sun May 14, 2017 5:30 pm
Forum: Investing - Help with Personal Investments
Topic: strategy when putting cash back into market
Replies: 9
Views: 1010

Re: strategy when putting cash back into market

Dollar-cost averaging makes sense when you are investing new money into the market; you are taking more risk than you were previously, and you aren't sure how you will actually react, so you move in gradually. But if you just rolled the money over, then you had the money already in the market, and s...
by grabiner
Sun May 14, 2017 5:25 pm
Forum: Investing - Help with Personal Investments
Topic: how do you invest your HSA
Replies: 39
Views: 3106

Re: how do you invest your HSA

If you are investing your HSA for savings in retirement (either because you have one year's deductible in cash, or because you are paying current expenses without using the HSA in order to get more tax-deferred growth), then you should invest it as if it were part of your IRA, as it has the same pur...
by grabiner
Sun May 14, 2017 3:03 pm
Forum: Investing - Help with Personal Investments
Topic: Taxable versus tax-exempt bond funds
Replies: 3
Views: 507

Re: Taxable versus tax-exempt bond funds

The key in all of these situations is to get your marginal tax rate right. Even if you are in the 25% bracket now, some provision in the tax code may make your marginal tax rate higher than 25%, which changes the break-even point for after-tax yield. Tax bracket creep. Our fed tax bracket is based o...

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