Search found 230 matches

by jmk
Sun Jun 25, 2017 12:55 pm
Forum: Investing - Theory, News & General
Topic: How riskier are Aaa corporate bonds?
Replies: 11
Views: 1019

Re: How riskier are Aaa corporate bonds?

I'd also say in most instances, a retail investor shouldn't have any need to purchase individual corporate bonds. For the vast majority, a bond fund will do just fine. Cd's are also a fine choice. If you insist on individual securities, I think treasuries would work just fine. If you are buying ind...
by jmk
Mon Jun 19, 2017 1:12 pm
Forum: Investing - Help with Personal Investments
Topic: Asset Allocation for HSA
Replies: 8
Views: 1269

Re: Asset Allocation for HSA

Since you are using both your HSA and your IRA for retirement savings, treat the HSA as part of your IRA for investment purposes. Follow up question: assuming I'm maximizing my IRAs, and am in relatively good health now, would one ever not want to lump the HSA into my IRA /Roth bucket when deciding...
by jmk
Mon Jun 19, 2017 10:58 am
Forum: Personal Consumer Issues
Topic: Fermenting Vegetables
Replies: 45
Views: 3136

Re: Fermenting Vegetables

Try radishes-- brine turns beautiful pink
by jmk
Mon Jun 19, 2017 10:56 am
Forum: Personal Finance (Not Investing)
Topic: What Car Should I Buy My Daughter as a Graduation Present
Replies: 139
Views: 6590

Re: Any BHs Had Experience With the Honda Fit?

Pros: -I am 5'11" and have plenty of room. -TONS of storage space with the seats folded down. "Most in class." e.g. Ikea queens size bed. Main reason I bought it-- I call it my mini-truck. Cons: - Poorer build quality than Toyota Corolla IMO -loud tire noise, especially highway - stif...
by jmk
Sat Jun 17, 2017 7:10 pm
Forum: Investing - Theory, News & General
Topic: Vanguard Prime Money Market Fund (VMMXX) breaks 1.00 (% not $)
Replies: 90
Views: 8208

Re: Vanguard Prime Money Market Fund (VMMXX) breaks 1.00 (% not $)

Kenkat wrote:I moved all my reserve cash from CapitalOne 360 Savings to Prime MM a couple of weeks ago.


CapitalOne just started what they call a "money market"but is really a high-minimum savings account with $10k minimum. It generates 1.04%. It functions just like its savings account, including FDIC.
by jmk
Sat Jun 17, 2017 5:05 pm
Forum: Investing - Theory, News & General
Topic: Your Favorite Portfolio Tilts
Replies: 84
Views: 5531

Re: Your Favorite Portfolio Tilts

Small tilt to USA since I don't need currency risk, I know the US economy is less corrupt than elsewhere and "works" for investment returns with less disruption than EU and Asia. Slight tilt to RE (TIAA) investing in coastal commercial real estate since I own only one residential house not...
by jmk
Thu Jun 15, 2017 11:32 am
Forum: Investing - Theory, News & General
Topic: How riskier are Aaa corporate bonds?
Replies: 11
Views: 1019

Re: How riskier are Aaa corporate bonds?

For an individual investor it's a moot point as CDs are better and are covered by FDIC insurance under the limits. For reference, looking at some bonds roughly of 5 years maturity... I searched for AAA-rated corporate bonds and found a Microsoft bond available with YtW of 2.104% maturing in Novembe...
by jmk
Thu Jun 15, 2017 10:07 am
Forum: Personal Finance (Not Investing)
Topic: Shouldn't one's "number" be indexed to the current PE ratio?
Replies: 22
Views: 1791

Re: Shouldn't one's "number" be indexed to the current PE ratio?

If you want to vary your number based on financial conditions, I think prevailing real rates would be the most important determinant. When you discount back real liabilities to a present value using real return as a discount rate you get the real present value of funding a retirement. When rates ar...
by jmk
Wed Jun 14, 2017 8:50 am
Forum: Investing - Theory, News & General
Topic: How riskier are Aaa corporate bonds?
Replies: 11
Views: 1019

How riskier are Aaa corporate bonds?

Exactly how much more risky in terms of default are top rated individual corporate bonds (e.g. Aaa) held to maturity compared to Treasuries? Is default risk the only difference?
by jmk
Tue Jun 13, 2017 11:17 pm
Forum: Investing - Theory, News & General
Topic: Excel Solver for Portfolio Rebalancing across Multiple Accounts
Replies: 24
Views: 2765

Re: Excel Solver for Portfolio Rebalancing across Multiple Accounts

I rebalance using total amount like everyone else. But to avoid having to buy or sell taxable account I do sometimes use Excel "goal seek" (solver) to figure out what total it would take to zero out new equity amounts.
by jmk
Wed May 31, 2017 6:58 am
Forum: Personal Consumer Issues
Topic: Any books really change your outlook on life?
Replies: 280
Views: 44931

Re: Any books really change your outlook on life?

Critique of Pure Reason, Kant (that the soul is infinite) That time and space are human constructs not in the world. Nicomachean Ethics, Aristotle (what is right is doing the appropriate thing at the appropriate time in the appropriate manner. and that virtue is to know what the extremes are and to...
by jmk
Sat May 27, 2017 6:30 pm
Forum: Investing - Help with Personal Investments
Topic: Best Use of Expensive 401k?
Replies: 9
Views: 623

Re: Best Use of Expensive 401k?

I ended up using DFA funds in that account. The way I figured it, I was stuck with those costs anyway, and DFA funds also would normally cost me such an access fee, so I was getting closest to fair value that way. If I wasn't in the 15% bracket (with no capital gains) and didn't anticipate staying ...
by jmk
Sat May 27, 2017 4:04 pm
Forum: Investing - Help with Personal Investments
Topic: Best Use of Expensive 401k?
Replies: 9
Views: 623

Re: Best Use of Expensive 401k?

Certainly it is not worth putting money in a mm as you are losing to inflation. The wiki does some calculations and comes up with a 401k still being worthwhile up to 1.7% in fees. One could argue that losing 2% to inflation (with 0% ER) is "cost of business" to get to the 15% bracket. Whe...
by jmk
Sat May 27, 2017 3:24 pm
Forum: Investing - Help with Personal Investments
Topic: Best Use of Expensive 401k?
Replies: 9
Views: 623

Re: Best Use of Expensive 401k?

Does this 401(k) have a loan provision? If so, can you borrow $50,000 and put the money in investments outside the 401(k) and thus save on the 401(k) expense ratio? The plan might allow borrowing: "If your retirement plan permits loans, you can generally, borrow up to 50% of your vested accoun...
by jmk
Sat May 27, 2017 2:54 pm
Forum: Investing - Help with Personal Investments
Topic: Best Use of Expensive 401k?
Replies: 9
Views: 623

Best Use of Expensive 401k?

I need to use my 401k beyond the match to stay in the 15% tax bracket. There is a 0% return (0%ER) MM option. Unfortunately all the other available funds through Nationwide have a 1.04% surcharge over institutional ERs. For instance, Vanguard Total Stock, the cheapest of all their options has .05+1....
by jmk
Sat May 27, 2017 12:26 pm
Forum: Investing - Theory, News & General
Topic: Why are capital gains taxed lower than div/interest?
Replies: 20
Views: 1459

Why are capital gains taxed lower than div/interest?

Money made from equity is taxed at lower rate than bonds and bank interest. Has this always been so? And, why is it so? Is there a philosophical, economic, and/or political basis?
by jmk
Thu May 11, 2017 10:42 am
Forum: Investing - Theory, News & General
Topic: Single most important investing advice?
Replies: 97
Views: 11795

Re: Single most important investing advice?

If you're poor, do what it takes to get a government job with a pension. The security (floor) of social security + pension allows you to invest savings like other boggleheads.
by jmk
Tue May 09, 2017 11:51 am
Forum: Investing - Theory, News & General
Topic: Holding bond funds to average duration
Replies: 22
Views: 2933

Re: Holding bond funds to average duration

If you buy a 5-year bond and hold it to maturity, you will get back the full principal value no matter what happens to interest rates along the way. In this situation, your duration decreases over time. To get the same effect with bond funds, you have to shorten your duration over time, switching f...
by jmk
Mon May 01, 2017 10:08 pm
Forum: Investing - Help with Personal Investments
Topic: Capital One 360 CD - won't allow beneficiaries?
Replies: 9
Views: 1096

Re: Capital One 360 CD - won't allow beneficiaries?

I believe Synchrony five year CD has a 362 day early withdrawal penalty compared to the 180 day penalty of Capital 360
by jmk
Sun Apr 23, 2017 5:23 pm
Forum: Investing - Help with Personal Investments
Topic: How to invest now for child's downpayment 20y years hence?
Replies: 5
Views: 814

How to invest now for child's downpayment 20y years hence?

I need help figuring out best way to invest $20k now for a one-time gift 22 or so years from now when daughter is 30. We plan on using mutual funds, with something like Small Value + Emerging Markets (in order to have highest expected return, since we are not wedded to any particular amount if marke...
by jmk
Sun Apr 23, 2017 4:31 pm
Forum: Investing - Help with Personal Investments
Topic: Advice needed: Ibonds for College vs 529?
Replies: 6
Views: 862

Re: Advice needed: Ibonds for College vs 529?

Depending on wife's income, you may have some chance of financial aid. Is that something you are looking for? Is any financial aid to a public university even plausible with $1.2million+ of assets (even if income is low)? 5.64%=$67,800/yr EFC, right? Vanguard estimates this state school tuition wil...
by jmk
Mon Apr 17, 2017 11:59 am
Forum: Investing - Help with Personal Investments
Topic: Advice needed: Ibonds for College vs 529?
Replies: 6
Views: 862

Advice needed: Ibonds for College vs 529?

I need help figuring out the best way to pay my only child's college in ten years. I have a bunch of high-interest ibonds reaching maturity within several years of her college, and since I will owe taxes on considerable interest, I am figuring using them is a "no brainer" since they'd be &...
by jmk
Fri Apr 14, 2017 7:14 am
Forum: Investing - Theory, News & General
Topic: Rebalancing to control risk doesn't make sense to me
Replies: 175
Views: 12277

Re: Rebalancing to control risk doesn't make sense to me

So will you then agree that saying that "rebalancing should be done to control risk" is wrong? Instead, we should say "rebalancing should be done to control behavior". No. Bonds do control risk (not just emotion) since adding bonds lowers the dispersion of returns. You're ensuri...
by jmk
Sat Apr 08, 2017 1:00 pm
Forum: Investing - Help with Personal Investments
Topic: stocks of companies in junk bond index fund?
Replies: 4
Views: 456

stocks of companies in junk bond index fund?

Just thought I'd ask. High-yield bond fund contains companies that are struggling and rated poorly by agencies. It has been argued one should take risk on the equity side. Is there a value fund that contains the equities for the companies in the high-yield bond index?
by jmk
Sat Apr 08, 2017 12:46 pm
Forum: Personal Consumer Issues
Topic: Help on how to spend more on myself (First World Whine)
Replies: 93
Views: 5926

Re: Help on how to spend more on myself (First World Whine)

Think about things that give you fun, things that are difficult you could master over time (hobbies), and give you deeper satisfaction, and things that give you deeper meaning.
Think about giving a lot away to help the world, be it deworming, eye glasses, or politics.
by jmk
Thu Apr 06, 2017 7:08 am
Forum: Investing - Theory, News & General
Topic: EE bonds vs F or G Fund vs Total Bond
Replies: 57
Views: 3308

Re: EE bonds vs F or G Fund vs Total Bond

The last two years I've essentially done what you're considering, for the same reasons. Each year I look for the best vehicle for the safe long term portion of my portfolio, and the 3.52% interest per year has been appealing enough to get some. They play the role of hedging against continued low to ...
by jmk
Sat Mar 25, 2017 10:45 pm
Forum: Personal Consumer Issues
Topic: Anyone taken a mid-career sabbatical?
Replies: 38
Views: 5243

Re: Anyone taken a mid-career sabbatical?

I took one year spent fixing house, cooking meals, raising son doing errands. Would recommend it. It also recentered me for returning to work: a break from rat race gave me an inner guide to what kind of career advancement I wanted. Spending was much less that year without me driving to work and abl...
by jmk
Sat Mar 25, 2017 12:36 pm
Forum: Investing - Theory, News & General
Topic: an in depth look at gold
Replies: 91
Views: 6640

Re: an in depth look at gold

Larry, one of the things I've never understood about your position on Gold... You always say an asset has to be looked at in the context of the rest of the portfolio. You do that with Commodities -- but doesn't Gold's worth work in the same way? For instance, with Portfolio visualizer monte carlo, r...
by jmk
Thu Mar 23, 2017 9:36 am
Forum: Investing - Theory, News & General
Topic: Accounting for active bond ETFs higher returns
Replies: 2
Views: 339

Accounting for active bond ETFs higher returns

Interesting article in M* comparing returns of active v passive bond funds: http://beta.morningstar.com/articles/798603/active-bond-funds-holding-their-own.html After demonstrating the superiority of active EFTs, Marciej Kawara argues the difference can be accounted for due to (my numbering): (1) Fi...
by jmk
Mon Mar 13, 2017 9:50 am
Forum: Investing - Theory, News & General
Topic: Great CD Promo! Andrews FCU 84 mo 3.01%
Replies: 247
Views: 32948

84 mo dropped to 2.2% APY

FYI on both normal CDs and IRA CDs.
by jmk
Fri Mar 03, 2017 9:13 pm
Forum: Personal Finance (Not Investing)
Topic: What are the big things to get right?
Replies: 91
Views: 12844

Re: What are the big things to get right?

baw703916 wrote:It would be wonderful if there were the marriage equivalent of an index fund so you could avoid idiosyncratic risk and compare on the basis of lowest expenses. ;)


Some of us do just that.
by jmk
Thu Mar 02, 2017 11:16 pm
Forum: Investing - Help with Personal Investments
Topic: Bonds bad in ROTH? Infographic:
Replies: 59
Views: 4613

Re: Bonds bad in ROTH? Infographic:

My 401k is very high fee (<100 person company) but all fees are incorporated into the ER so there's no hidden ones. The ERs come out to a 1% AUM fee plus the fund ER. In that light, it's borderline reckless to put low yielding bonds in that high of an expense ratio. At least with equities (in my ca...
by jmk
Thu Mar 02, 2017 10:14 pm
Forum: Investing - Theory, News & General
Topic: I am calling a market bubble right now.
Replies: 27
Views: 2964

Re: I am calling a market bubble right now.

When people are out there shouting about the impending doom from bubbles isn't when bubbles happen. Bubbles happen when there is excessive optimism and talk of new paradigms and explanations of why old valuation measurements don't matter anymore. http://www.etf.com/sections/index-investor-corner/sw...
by jmk
Tue Feb 28, 2017 9:07 pm
Forum: Investing - Theory, News & General
Topic: Anyone using Optum Bank for HSA?
Replies: 16
Views: 1522

Re: Anyone using Optum Bank for HSA?

Although they don't reveal it, they have three options for investing with most contracts: the default is $2000 kept in savings excess invested with 1$/m fee. They also have an option that allows only $500 kept in savings but something like $60/yr in fees. You have to change by phone, the options are...
by jmk
Mon Feb 27, 2017 10:02 am
Forum: Investing - Help with Personal Investments
Topic: distribution yield versus dividend yield
Replies: 2
Views: 457

Re: distribution yield versus dividend yield

The distribution yield is backward-looking, while the SEC yield is based on current yields. For a stock fund, there shouldn't be much of a difference; the SEC yield is likely to be close to the next year's distribution. Thanks! So the "dividend yield" (which Vanguard also lists for all it...
by jmk
Sun Feb 26, 2017 1:16 am
Forum: Investing - Help with Personal Investments
Topic: Can somebody please explain brokerage accounts at Vanguard?
Replies: 23
Views: 2735

Re: Can somebody please explain brokerage accounts at Vanguard?

I have to sit their in mid morning watching prices, ... Why is that? We have a couple new Vanguard brokerage account Roth IRAs that only hold mutual funds and no ETF shares, so one is not required to even own ETF shares at all. I guess it's the ETF that drives me crazy. I bought VSS because the ER ...
by jmk
Sun Feb 26, 2017 1:01 am
Forum: Investing - Help with Personal Investments
Topic: distribution yield versus dividend yield
Replies: 2
Views: 457

distribution yield versus dividend yield

For stock mutual funds that are buy-ahd-hold (i.e. ignoring capital gains), which is the best indicator of taxed yields: the distribution yield or the dividend yield?
by jmk
Sat Feb 25, 2017 1:43 pm
Forum: Investing - Help with Personal Investments
Topic: Can somebody please explain brokerage accounts at Vanguard?
Replies: 23
Views: 2735

Re: Can somebody please explain brokerage accounts at Vanguard?

My Roth account is a brokerage account containing two mutual funds and an ETF. Frankly I wish I hadn't converted since the settlement funds creates an added delay and the etf is a royal pain. I have to sit their in mid morning watching prices, which simply doesn't work with a busy working person. It...
by jmk
Sat Feb 25, 2017 1:28 pm
Forum: Investing - Help with Personal Investments
Topic: 5k for 10yrs
Replies: 6
Views: 689

Re: 5k for 10yrs

I have $5k & beginning in '18 barring any unforeseen circumstances will have another $500/mo that I'm interested in investing. I'd want to use the money in 10yrs. Im not interested in actively managing it. Any suggestions for particular funds I should be looking into? How Important is it to you...
by jmk
Thu Feb 23, 2017 12:00 pm
Forum: Investing - Theory, News & General
Topic: Extreme Valuations, and why you should reconsider
Replies: 307
Views: 22237

Re: Extreme Valuations, and why you should reconsider

I'm fine if the Shiller PE 10 is under 25. I'm NOT fine with it at 28. This is something I've been wondering about. Larry Swedroe made a detailed case for why the PE10 needed to be interpreted under a new context so "28" isn't what it used to be. But at what point is it worrisome? From wh...
by jmk
Tue Feb 21, 2017 10:50 am
Forum: Personal Consumer Issues
Topic: Terrible negotiator - need help with words to use [Buying a car]
Replies: 94
Views: 7126

Re: Terrible negotiator - need help with words to use [Buying a car]

I am a TERRIBLE negotiator. My stomach is in a knot, my voice quivers, I can't make eye contact, and generally I"m a mess when it comes to responding to an offer I've received. Naturally, salespeople love me. If you interact with the internet salepeople you can do the whole thing by email unti...
by jmk
Sun Feb 19, 2017 4:16 pm
Forum: Investing - Help with Personal Investments
Topic: Does monthly vs annual valuation of an annuity alter total payout?
Replies: 11
Views: 562

Re: Does monthly vs annual valuation of an annuity alter total $?

Since you know TIAA, Wizard, do you have any recommendations on Standard versus Graded pay-outs for a bunch of older vintage Traditional accounts? Graded is where they reinvest any returns over the guarantee amount rather than paying them out. Since these accounts have high paying guarantees (from p...
by jmk
Sun Feb 19, 2017 4:08 pm
Forum: Investing - Help with Personal Investments
Topic: Does monthly vs annual valuation of an annuity alter total payout?
Replies: 11
Views: 562

Re: Does monthly vs annual valuation of an annuity alter total $?

annually adjusted VAs are not adjusted per the average performance over the past year, but on the NAV of the account on 3/31 compared to the NAV on 3/31 a year ago. But the NAV on 3/31 compared to a year ago with dividends included divided by 12 is the average isn't it? (That is, 12 even steps.) So...
by jmk
Sun Feb 19, 2017 2:31 pm
Forum: Investing - Help with Personal Investments
Topic: Does monthly vs annual valuation of an annuity alter total payout?
Replies: 11
Views: 562

Re: Does monthly vs annual valuation of an annuity alter total $?

Aha, key point: annually adjusted VAs are not adjusted per the average performance over the past year, but on the NAV of the account on 3/31 compared to the NAV on 3/31 a year ago. Note that VA NAVs include reinvested dividends... Then I'm really back to square one. Last year's market is a good &qu...
by jmk
Sun Feb 19, 2017 2:05 pm
Forum: Investing - Help with Personal Investments
Topic: Does monthly vs annual valuation of an annuity alter total payout?
Replies: 11
Views: 562

Re: Does monthly vs annual valuation of an annuity alter total $?

I would have to do some homework to answer your real question, which concerns the summation of all payouts being equal or not. If the rate set each year on the annual valuation is the average of the previous 12 months, then shouldn't the total be the same either way? (Analogous to how my electric b...
by jmk
Sun Feb 19, 2017 1:39 pm
Forum: Investing - Help with Personal Investments
Topic: Does monthly vs annual valuation of an annuity alter total payout?
Replies: 11
Views: 562

Re: Does monthly vs annual valuation of an annuity alter total $?

The Wizard wrote:And why do you have five years left?
Are you "checking out" then?
Or more likely, did you choose period certain rather than lifetime payout?


I'm beneficiary. That's what was left of the 20 year guaranteed payout of the decedent.
by jmk
Sun Feb 19, 2017 1:36 pm
Forum: Personal Finance (Not Investing)
Topic: How do Taxes work with Mutual funds.
Replies: 38
Views: 2595

Re: How do Taxes work with Mutual funds.

Let say for example I have a taxable brokerage account and invest $5K into one mutual fund “ABC”. The fund has growth over the year but I leave it alone and instruct VG to reinvest any dividends. At the end of the year what will VG send me in terms of Tax forms, with this be a 1099? If yes will the...
by jmk
Sun Feb 19, 2017 12:44 pm
Forum: Investing - Theory, News & General
Topic: Great CD Promo! Andrews FCU 84 mo 3.01%
Replies: 247
Views: 32948

Re: Great CD Promo! Andrews FCU 84 mo 3.01%

Is the EWP on the entire CD amount? Do they allow partial withdrawals? I believe it is the Andrews Federal Credit Union that allows partial withdrawals and the penalty is only on the withdrawn amount . FWIW, after reading this I verbally confirmed that with one of their reps. I've learned not to tr...
by jmk
Sun Feb 19, 2017 12:43 pm
Forum: Investing - Theory, News & General
Topic: Great CD Promo! Andrews FCU 84 mo 3.01%
Replies: 247
Views: 32948

Re: Great CD Promo! Andrews FCU 84 mo 3.01%

Texasgulf Federal Credit Union is offering 3% on a 5-year CD per depositaccounts.com Maybe Andrews FCU has presaged a trend! As rates go up we'll see more of these, of course. But notice you have to have family members who live within Wharton County. As opposed to Andrews, which allows you to join ...

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