Search found 19393 matches

by grabiner
Tue Apr 25, 2017 9:05 pm
Forum: Personal Consumer Issues
Topic: umbrella for auto insurance
Replies: 6
Views: 418

Re: umbrella for auto insurance

...reasonable in pricing for $1million umbrella plus $235K home plus the 2012 prius OR an alternate way of protecting my life savings ? I've been told that the homeowner's and auto need to be held by the same carrier for you to be eligible for umbrella which, considering what it insures against, al...
by grabiner
Tue Apr 25, 2017 8:58 pm
Forum: Investing - Theory, News & General
Topic: Morningstar rating: S&P 5-stars, but TSM 4-stars?
Replies: 10
Views: 998

Re: Morningstar rating: S&P 5-stars, but TSM 4-stars?

Total Stock Market Index is probably the least likely fund to earn five stars with M*, but the reason is also what makes it such a good fund. M* gives a fund five stars if its risk-adjusted return are among the top 10% of all funds in the category. Total Stock Market Index has about the same holding...
by grabiner
Tue Apr 25, 2017 8:36 pm
Forum: Personal Finance (Not Investing)
Topic: First Mortgage, need help with financial considerations (15 vs. 30 year)
Replies: 21
Views: 1535

Re: First Mortgage, need help with financial considerations (15 vs. 30 year)

I would prefer the 30-year mortgage. The bank is indifferent between the two; it collects more interest on the 30-year mortgage, but it runs the risk that rates will rise and you will be paying 4.25% interest for years while earning 7% on bonds. Therefore, the decision should be based on whether you...
by grabiner
Tue Apr 25, 2017 8:25 pm
Forum: Personal Finance (Not Investing)
Topic: Using Roth IRA as a savings account?
Replies: 12
Views: 686

Re: Using Roth IRA as a savings account?

The wiki has an example which shows the advantage of doing this: Roth IRA as an emergency fund If you do use your Roth IRA as an emergency fund, keep the emergency fund in something low-risk such as a short-term bond fund. You'll still benefit from the tax deferral, but you won't risk losing part of...
by grabiner
Tue Apr 25, 2017 8:11 pm
Forum: Investing - Help with Personal Investments
Topic: Wash sales on calls/puts
Replies: 2
Views: 196

Re: Wash sales on calls/puts

In your example, even if your puts are a wash, it won't matter on your taxes, since you sold the washed put in the same year as the replacement. When you bought the second put for $9000, the $1000 disallowed wash loss was added to its basis, so your basis was $10,000 and you sold it for $10,000 with...
by grabiner
Tue Apr 25, 2017 7:52 pm
Forum: Investing - Help with Personal Investments
Topic: Diversification of IRA
Replies: 4
Views: 212

Re: Diversification of IRA

My IRA has a value of approx. $375,000. It is approx. 1/3 of my portfolio. I am into my third year of Required Minimum Distributions. Currently, I have the entire IRA invested in Vanguard's Life Strategy Moderate Growth (VSMGX). At the time I moved my investments over to Vanguard I had multiple dec...
by grabiner
Tue Apr 25, 2017 7:45 pm
Forum: Investing - Help with Personal Investments
Topic: Does Portfolio Size Influence Stock/Bond Allocation?
Replies: 13
Views: 740

Re: Does Portfolio Size Influence Stock/Bond Allocation?

Portfolio size should have an indirect effect on your risk tolerance while you are still working. If you are just getting started as an investor, and 80% of your retirement portfolio will come from money you have not yet invested, a 50% drop in your portfolio value will cost you only 10% of your ret...
by grabiner
Mon Apr 24, 2017 10:49 pm
Forum: Personal Finance (Not Investing)
Topic: Are relocation expenses deductible if given lump sum from company?
Replies: 10
Views: 690

Re: Are relocation expenses deductible if given lump sum from company?

Thanks for the replies. The 22k lump sum is after tax. So the actual amount is 35k, but after taxes 22k is sent to my checking account. If I understand correctly, I can still deduct all my out of pocket relocation expenses from this 35k? Only those expenses which are deductible under IRS rules can ...
by grabiner
Mon Apr 24, 2017 10:43 pm
Forum: Personal Consumer Issues
Topic: Are people aware that Verizon email is being terminated?
Replies: 54
Views: 5576

Re: Are people aware that Verizon email is being terminated?

My notification that my Verizon bill was available online was marked as spam by AOL. And the Bogleheads notifications are always marked as spam, even though I have had a bunch of them and have corrected them online. And I made a Vanguard transaction acknowledgement, which also wound up in my spam f...
by grabiner
Sun Apr 23, 2017 10:25 pm
Forum: Investing - Help with Personal Investments
Topic: Tax-sheltering and target retirement fund disadvantages
Replies: 13
Views: 1084

Re: Tax-sheltering and target retirement fund disadvantages

We've got two funds in taxable, Tax-Managed Balanced and Total World Stock index. This particular pair doesn't make much sense, as you can't control your US/foreign and stock/bond allocation separately. If you hold only two funds in taxable, Total World Stock and a separate municipal-bond fund woul...
by grabiner
Sun Apr 23, 2017 10:18 pm
Forum: Personal Finance (Not Investing)
Topic: Are relocation expenses deductible if given lump sum from company?
Replies: 10
Views: 690

Re: Are relocation expenses deductible if given lump sum from company?

If your employer reimburses you for non-deductible expenses (such as a house-hunting trip), the reimbursement is taxable, and will be reported on your W-2. You can still deduct your actual deductible expenses, for moving your family and any items you pack and ship yourself, unless you received a ded...
by grabiner
Sun Apr 23, 2017 10:10 pm
Forum: Investing - Help with Personal Investments
Topic: Fund selection for unmatched 401k
Replies: 6
Views: 304

Re: Fund selection for unmatched 401k

PIMCO Total Return Fund - Class A/ Intermediate-Term Bond (0.85%) State Street S&P 500 Index Securities Lending Series Fund - Class IX/ Large Blend (0.70%) State Street S&P MidCap Index Non Lending Series Fund - Class J/ Mid-Cap Blend (0.71%) These three look like the best options, compared...
by grabiner
Sun Apr 23, 2017 6:00 pm
Forum: Personal Consumer Issues
Topic: Refrigerator Water Filters -- OEM or Generic?
Replies: 23
Views: 13104

Re: Refrigerator Water Filters -- OEM or Generic?

My GE refrigerator has a system that indicates when the filter should be replaced. IMO that feature is designed to sell filters. Not necessarily. The first few times the light came on was about the same time little green things were pumping into my water class. So, it might've have been better to h...
by grabiner
Sun Apr 23, 2017 10:06 am
Forum: Investing - Theory, News & General
Topic: Anybody purposely loading up on mortgage debt?
Replies: 107
Views: 9961

Re: Anybody purposely loading up on mortgage debt?

The real risk in this approach is that the 3.25% return you get for paying off a mortgage is guaranteed, and the 10.1% stock market return is an average, and is not guaranteed. But, if you want guaranteed returns, you'd be investing in bonds, not stocks. You just keep saying that a mortgage is effe...
by grabiner
Sun Apr 23, 2017 8:45 am
Forum: Investing - Help with Personal Investments
Topic: Differential aggressiveness for ROTH vs 401K
Replies: 31
Views: 2314

Re: Differential aggressiveness for ROTH vs 401K

My question is: Are there any scenarios where putting the Roth in the investment with a lower return would be a good idea? Another example: you may be using the Roth before 59-1/2, such as withdrawing the money to make a down payment on a house. You can withdraw contributions, plus $10,000 of earni...
by grabiner
Sun Apr 23, 2017 8:42 am
Forum: Investing - Help with Personal Investments
Topic: Fund selection for unmatched 401k
Replies: 6
Views: 304

Re: Fund selection for unmatched 401k

(You could do this with your old employer 401(k); if it is charging 0.8% expenses on the target retirement fund, you want to get the money out.) I would think that is decimal point problem. It is a Vanguard Institutional class fund. This is why the "if"; the plan could have added extra ex...
by grabiner
Sun Apr 23, 2017 8:35 am
Forum: Personal Finance (Not Investing)
Topic: End of car lease calculation
Replies: 7
Views: 603

Re: End of car lease calculation

Since the residual is much less than the value of a new car, the used car makes more sense. Suppose that you keep the car until it is eight years old, and then trade it in for $6000. The three-year-old car is costing $12,400 for five years, which is $2480 per year. For the three extra years, you are...
by grabiner
Sun Apr 23, 2017 8:03 am
Forum: Investing - Help with Personal Investments
Topic: Fund selection for unmatched 401k
Replies: 6
Views: 304

Re: Fund selection for unmatched 401k

Welcome to the forum! Salary: $118k Tax Filing Status: Married Filing Jointly Tax Rate: 18% Federal, 7% State State of Residence: California What matters for investing is your tax bracket, not your average tax rate. The reason is that investment decisions affect that number. If you contribute $1000 ...
by grabiner
Sun Apr 23, 2017 7:39 am
Forum: Investing - Theory, News & General
Topic: How would tax bracket changes affect the value of munis?
Replies: 7
Views: 678

Re: How would tax bracket changes affect the value of munis?

The difference wouldn't be that great. Intermediate-term municipal bonds currently yield 2.12% (yield of Vanguard Intermediate-Term Tax-Exempt plus expense ratio). If investors currently believe the break-even tax rate is 25% (my usual assumption), then these bonds have the same risk as corporate b...
by grabiner
Sat Apr 22, 2017 9:52 pm
Forum: Investing - Theory, News & General
Topic: How would tax bracket changes affect the value of munis?
Replies: 7
Views: 678

Re: How would tax bracket changes affect the value of munis?

The difference wouldn't be that great. Intermediate-term municipal bonds currently yield 2.12% (yield of Vanguard Intermediate-Term Tax-Exempt plus expense ratio). If investors currently believe the break-even tax rate is 25% (my usual assumption), then these bonds have the same risk as corporate bo...
by grabiner
Sat Apr 22, 2017 9:45 pm
Forum: Investing - Help with Personal Investments
Topic: Understanding iShares initial investment index differences
Replies: 12
Views: 579

Re: Understanding iShares initial investment index differences

I guess what I'm trying to understand is why is splitting the total market into its components beneficial when you have a larger amount to invest? The tooltip says it 'further diversifies' and you can 'access more targeted exposures', but I want to understand how it further diversifies, and what ar...
by grabiner
Sat Apr 22, 2017 9:33 pm
Forum: Investing - Help with Personal Investments
Topic: Tax sheltered accounts - tax efficiency vs. growth
Replies: 4
Views: 473

Re: Tax sheltered accounts - tax efficiency vs. growth

Perhaps you have misinterpreted "common advice". What I think you may have heard is that tax inefficient investments such as bonds and REITs should go into tax advantaged accounts. Very tax efficient investments such as broad based index fund should go into taxable accounts. Anything else...
by grabiner
Sat Apr 22, 2017 9:30 pm
Forum: Investing - Help with Personal Investments
Topic: Explain TIPS funds
Replies: 2
Views: 495

Re: Explain TIPS funds

Bond funds and ETFs accrue their dividends over time, and pay them out as part of their distributions. For example, if a fund holds a bond which pays a $365 coupon every June and December, it accrues the dividend as $2 per day. The fund will distribute $62 in January if it makes monthly distribution...
by grabiner
Sat Apr 22, 2017 9:24 pm
Forum: Investing - Help with Personal Investments
Topic: Vanguard's Market Neutral Fund
Replies: 11
Views: 1667

Re: Vanguard's Market Neutral Fund

The expense ratio is 1.6%. Not sure why anyone would want it... Just a note, this is a revised old thread, that particular comment is from 2014, and the expense ratio is down to 0.25% now. The 0.25% is the real expense of the fund; the reported expense ratio is still 1.46%. The difference is that t...
by grabiner
Sat Apr 22, 2017 9:15 pm
Forum: Investing - Help with Personal Investments
Topic: Differential aggressiveness for ROTH vs 401K
Replies: 31
Views: 2314

Re: Differential aggressiveness for ROTH vs 401K

If there were no RMD and one unchanging tax rate, then it would be a wash. If the tax rate was 25% then you could think of your 401k as 75% Roth and 25% Uncle Sam's. Differential aggressiveness would only matter to Uncle Sam. But there are RMDs and other considerations. My question is: Are there an...
by grabiner
Sat Apr 22, 2017 9:09 pm
Forum: Investing - Help with Personal Investments
Topic: Moving from 10 to 2 funds - capital gains?
Replies: 12
Views: 1440

Re: Moving from 10 to 2 funds - capital gains?

Tyler Aspect: Why shouldn't I sell total bond to hold in tax deferred? The gain is 2k. Given your handle, do you live in NYC? If so, you do want to get Total Bond Market out of your taxable account, as the state tax makes it expensive to keep there. You could hold it in an IRA. Alternatively, you m...
by grabiner
Sat Apr 22, 2017 9:04 pm
Forum: Investing - Theory, News & General
Topic: Anybody purposely loading up on mortgage debt?
Replies: 107
Views: 9961

Re: Anybody purposely loading up on mortgage debt?

Let's say that someone has $100,000 of stocks, $100,000 of bonds, and a $100,000 mortgage balance. What is that person's real AA? I find it interesting that this person is both lending $100,000 and borrowing $100,000, which nets out to $0 on their balance sheet. Also, they are probably borrowing at...
by grabiner
Sat Apr 22, 2017 8:56 pm
Forum: Personal Consumer Issues
Topic: Improving my Math Skills
Replies: 27
Views: 2979

Re: Improving my Math Skills

What sort of math skills would help the most in investing? Another example, not even a math skill in the general sense, is to recognize that there is a math problem, and solve it before making a decision. Suppose you are considering hiring an advisor who charges 1% of your portfolio as a management...
by grabiner
Fri Apr 21, 2017 9:51 pm
Forum: Personal Consumer Issues
Topic: Are people aware that Verizon email is being terminated?
Replies: 54
Views: 5576

Re: Are people aware that Verizon email is being terminated?

I also use Thunderbird. The only thing that changed was the password, as you need to change it for AOL. However, I have found that AOL's spam filtering is terrible; it's wrong about 1/3 of the time, in both directions. (I do make filtering a bit more difficult, because I don't use my verizon.net ad...
by grabiner
Fri Apr 21, 2017 9:40 pm
Forum: Personal Consumer Issues
Topic: Improving my Math Skills
Replies: 27
Views: 2979

Re: Improving my Math Skills

What sort of math skills would help the most in investing? A basic understanding of probability and statistics. (What is a standard deviation? How does it relate to risk? What does it mean for two investments to have a low correlation coefficient?) I am a mathematician, and rarely discuss anything ...
by grabiner
Fri Apr 21, 2017 9:11 pm
Forum: Personal Finance (Not Investing)
Topic: Did anything surprise you in your 2016 taxes?
Replies: 82
Views: 6317

Re: Did anything surprise you in your 2016 taxes?

This was the first year I had to file a form 1116. What suprised me was the degree to which you have to put a whole bunch of numbers on the form that had no impact on the credit. Seems like they need to bump up the threshold at which you need to file the form. The reason the numbers have no effect ...
by grabiner
Fri Apr 21, 2017 9:01 pm
Forum: Investing - Help with Personal Investments
Topic: 401K Expense Ratio
Replies: 7
Views: 794

Re: 401K Expense Ratio

Welcome to the forum! Another potential advantage is that you may not stay with the company forever. When you leave, you can roll your old-company 401(k) into an IRA, keeping the tax deferral and getting rid of the high costs. But as long as you have the high-cost 401(k), it's better to invest in ot...
by grabiner
Fri Apr 21, 2017 8:58 pm
Forum: Investing - Help with Personal Investments
Topic: Moving from 10 to 2 funds - capital gains?
Replies: 12
Views: 1440

Re: Moving from 10 to 2 funds - capital gains?

Tyler Aspect: Why shouldn't I sell total bond to hold in tax deferred? The gain is 2k. Given your handle, do you live in NYC? If so, you do want to get Total Bond Market out of your taxable account, as the state tax makes it expensive to keep there. You could hold it in an IRA. Alternatively, you m...
by grabiner
Fri Apr 21, 2017 8:50 pm
Forum: Investing - Help with Personal Investments
Topic: Differential aggressiveness for ROTH vs 401K
Replies: 31
Views: 2314

Re: Differential aggressiveness for ROTH vs 401K

Same misunderstanding. If you disagree, read the Wiki article I linked to, and come back with an argument defending your position against what it explains. Kevin Kevin, I think I disagree with you for the following reason. When you talk about risk you need to include the concept of long term vs sho...
by grabiner
Fri Apr 21, 2017 7:10 pm
Forum: Investing - Help with Personal Investments
Topic: Grow my taxable index fund, or contribute to a non-matching 403b?
Replies: 37
Views: 2473

Re: Grow my taxable index fund, or contribute to a non-matching 403b?

This might be a dumb question, but how difficult/easy is it to re-balance if I go with these ratios? I have a target date fund (VFFVX) so I have never exactly had to re-balance. Are there fees going to be associated with buying/selling in order to re-balance if conducted within a 403b? There should...
by grabiner
Fri Apr 21, 2017 6:12 pm
Forum: Investing - Theory, News & General
Topic: Bond fund Maturity vs Duration
Replies: 32
Views: 2124

Re: Bond fund Maturity vs Duration

CUSPID: 912828ND8, Term: 10 years. Maturity date: 5/15/2020 (3 years). Coupon: 3.50%. YTM: 1.387% CUSPID: 912828VA5, Term: 7 years. Maturity date: 4/30/2020 (3 years). Coupon: 1.125%. YTM: 1.388% Different term, different coupon, same maturity (within a few days), same YTM. Perhaps the duration is ...
by grabiner
Thu Apr 20, 2017 11:04 pm
Forum: Investing - Theory, News & General
Topic: How inefficient is it to hold Total Bond Index in a taxable account?
Replies: 34
Views: 4103

Re: How inefficient is it to hold Total Bond Index in a taxable account?

Rather than putting money into bonds that are very likely to languish in a rising interest rate environment, have you considered a more productive way to use the capital? Paying down a mortgage would be a good alternative, for instance. This works exactly the same. If you buy a 10-year bond yieldin...
by grabiner
Thu Apr 20, 2017 9:22 pm
Forum: Investing - Theory, News & General
Topic: Gross vs net expense ratios
Replies: 2
Views: 469

Re: Gross vs net expense ratios

Welcome to the forum! I would be inclined to avoid a stock fund with a fee waiver in a taxable account, as the fund might use the fee waiver to attract new investors, and then eliminate the waiver later when you are stuck with large capital gains. For a bond fund, or in an IRA, this wouldn't be an i...
by grabiner
Thu Apr 20, 2017 9:17 pm
Forum: Investing - Theory, News & General
Topic: How inefficient is it to hold Total Bond Index in a taxable account?
Replies: 34
Views: 4103

Re: How inefficient is it to hold Total Bond Index in a taxable account?

For taxable bonds, ETFs have a major advantage over mutual funds because of how they deal with capital gains. This is an advantage for stock funds, but not for bond funds. When interest rates fall, all bonds have capital gains, and even bond ETFs will have to sell the bonds for a gain. Also, bond p...
by grabiner
Thu Apr 20, 2017 9:13 pm
Forum: Investing - Theory, News & General
Topic: How inefficient is it to hold Total Bond Index in a taxable account?
Replies: 34
Views: 4103

Re: How inefficient is it to hold Total Bond Index in a taxable account?

Rather than putting money into bonds that are very likely to languish in a rising interest rate environment, have you considered a more productive way to use the capital? Paying down a mortgage would be a good alternative, for instance. This works exactly the same. If you buy a 10-year bond yieldin...
by grabiner
Thu Apr 20, 2017 9:09 pm
Forum: Personal Finance (Not Investing)
Topic: New version of VantageScore coming
Replies: 16
Views: 1153

Re: New version of VantageScore coming

The main problem is, your cc balances may be going down and so is your income. it just is not a comprehensive analsysis. Income plays no factor into credit score. Nor does net worth! Obviously there are practical reasons for this. But without income/NW, the scores have limited meaning. It is basica...
by grabiner
Thu Apr 20, 2017 9:04 pm
Forum: Personal Finance (Not Investing)
Topic: Did anything surprise you in your 2016 taxes?
Replies: 82
Views: 6317

Re: Did anything surprise you in your 2016 taxes?

This year however I spent a lot of time in Omaha NE. Man, NE nails nonresidences. Most states just tax your state source income, but NE apportions your income so they effectively pull in non-Nebraska income and subject it to tax. The additional tax was overall small in the grand scam of things but ...
by grabiner
Thu Apr 20, 2017 7:57 pm
Forum: Personal Finance (Not Investing)
Topic: New version of VantageScore coming
Replies: 16
Views: 1153

Re: New version of VantageScore coming

The whole system is incredibly broken. And as it happens precious few lenders use VantageScore in lending decisions Many credit card vendors use VantageScore. The system is "unique". A credit score doesn't really differentiate between someone that pays off monthly vs carries a balance. Pe...
by grabiner
Thu Apr 20, 2017 7:53 pm
Forum: Personal Finance (Not Investing)
Topic: When does it make sense to start paying down (or off) a low rate mortgage?
Replies: 43
Views: 3351

Re: When does it make sense to start paying down (or off) a low rate mortgage?

I would suggest paying down a mortgage when that is the best use of your money; that is, it gives the best risk-adjusted return. To find the risk-adjusted return, compare the after-tax rate on your mortgage to the after-tax rate on a low-risk bond of the same duration as your mortgage prepayments. F...
by grabiner
Thu Apr 20, 2017 7:29 pm
Forum: Personal Finance (Not Investing)
Topic: New version of VantageScore coming
Replies: 16
Views: 1153

Re: New version of VantageScore coming

I've always thought it made no sense that replacing a 5 year old car with a $10k limit with a new card with a $10k limit would harm your credit. Credit scoring only knows what happened, not why. Replacing an old card by a new card with better terms is a neutral move. But if the old card considered ...
by grabiner
Thu Apr 20, 2017 7:21 pm
Forum: Investing - Help with Personal Investments
Topic: Grow my taxable index fund, or contribute to a non-matching 403b?
Replies: 37
Views: 2473

Re: Grow my taxable index fund, or contribute to a non-matching 403b?

Thank you all of you for your detailed advice, it's extremely helpful! Clarification:I live in Ohio, and I am in the 3.96% income tax bracket (sorry I didn't inclue that in the beginning!) Remaining questions: -When a time comes where I leave my employer and decide to roll over my 403b into an IRA ...
by grabiner
Thu Apr 20, 2017 7:16 pm
Forum: Investing - Help with Personal Investments
Topic: Should I tilt to Country of Birth in asset allocation?
Replies: 11
Views: 1022

Re: Should I tilt to Country of Birth in asset allocation?

You may have a currency issue which suggests a tilt towards the country in which you will be spending your money. Normally, the reason that US investors should overweight the US and underweight Japan is that their retirement expenses will be in US dollars; if the yen falls against the dollar, Japane...
by grabiner
Thu Apr 20, 2017 7:12 pm
Forum: Investing - Help with Personal Investments
Topic: How to Handle Taxes on One Time Windfall (sale)
Replies: 13
Views: 936

Re: How to Handle Taxes on One Time Windfall (sale)

Am I being naive to think that the IRS would not penalize you for not paying taxes on capital gains until you actually incur them? In my state, you can show your income by quarter when you file your taxes and you will not have to pay a penalty for undepayment if you paid extra taxes for the quarter...
by grabiner
Thu Apr 20, 2017 6:55 pm
Forum: Personal Finance (Not Investing)
Topic: New version of VantageScore coming
Replies: 16
Views: 1153

Re: New version of VantageScore coming

I've always thought it made no sense that replacing a 5 year old car with a $10k limit with a new card with a $10k limit would harm your credit. Credit scoring only knows what happened, not why. Replacing an old card by a new card with better terms is a neutral move. But if the old card considered ...
by grabiner
Thu Apr 20, 2017 9:53 am
Forum: Personal Finance (Not Investing)
Topic: To put 5k into my car loan or just keep it...
Replies: 41
Views: 2297

Re: To put 5k into my car loan or just keep it...

Why isn't the mortgage an emergency debt? She owes 196k and it is where she lives. That loan could kill her before a car loan will b/c she'd end up on the streets - or would she live in the paid off car? See how extreme it is to say that about the car loan? I'd pay more towards the mortgage before ...

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