Search found 1215 matches

by kolea
Mon Apr 24, 2017 7:32 pm
Forum: Personal Finance (Not Investing)
Topic: Would You Buy This Home? Please Tell Me Why Not?
Replies: 17
Views: 2050

Re: Would You Buy This Home? Please Tell Me Why Not?

I would not buy the house based on a promise of future work, I would buy when work has been completed. Once it is completed, that is the time you should judge it. The things I would look for: - was all the work to turn it back into a house properly permitted? - This is more akin to a remodel than ne...
by kolea
Mon Apr 24, 2017 2:43 pm
Forum: Investing - Help with Personal Investments
Topic: Retiree Withdrawal Portfolio
Replies: 9
Views: 573

Re: Retiree Withdrawal Portfolio

It is going to be tricky when she reaches 70.5. If her IRA is still $720k, she will have to take an initial RMD of 3.7% for a withdrawal of $26.7k. Her total income that year will be 19k + 26.7k = 45.7k. That is over the threshold for the 85% taxable level for SS. Her taxable income that year will b...
by kolea
Mon Apr 24, 2017 1:44 pm
Forum: Investing - Help with Personal Investments
Topic: Rght Bond fund/s when interest rates rise?
Replies: 29
Views: 1543

Re: Rght Bond fund/s when interest rates rise?

We use Vanguard Intermediate-term Bond Index Fund Admiral Shares, but not for any reason associated with expectations about interest rates. Ruralavalon, just curious, why do you prefer Intermediate bond fund over the total bond market fund? I also prefer intermediate funds (both US Treasuries and C...
by kolea
Mon Apr 24, 2017 1:35 pm
Forum: Investing - Theory, News & General
Topic: Schwab False Ad (4X Cheaper than VG)
Replies: 20
Views: 1452

Re: Schwab False Ad (4X Cheaper than VG)

Non-profit seems like a squishy term. Isn't it always possible to find (or generate) sufficient expenses to balance income? Just issue some bonuses to all the execs and presto, no profit. In any event, with $4 trillion AUM, and an average ER of 0.10%, I am sure someone is making some money. I don't...
by kolea
Mon Apr 24, 2017 12:43 pm
Forum: Investing - Theory, News & General
Topic: Schwab False Ad (4X Cheaper than VG)
Replies: 20
Views: 1452

Re: Schwab False Ad (4X Cheaper than VG)

Non-profit seems like a squishy term. Isn't it always possible to find (or generate) sufficient expenses to balance income? Just issue some bonuses to all the execs and presto, no profit. In any event, with $4 trillion AUM, and an average ER of 0.10%, I am sure someone is making some money. I don't ...
by kolea
Mon Apr 24, 2017 11:43 am
Forum: Investing - Help with Personal Investments
Topic: Best Place to Park Over $1m in Cash
Replies: 28
Views: 1745

Re: Best Place to Park Over $1m in Cash

I'm looking for something with same day liquidity with the aim to maintain a $1 NAV while offering a decent (I know it will probably max out at 0.85-0.90%) yield. If by "same day liquidity" you mean able to cash-out without loss of principal, your goal is going to be difficult. Any debt i...
by kolea
Sun Apr 23, 2017 10:52 am
Forum: Investing - Help with Personal Investments
Topic: Is an ETFs more "tax fair" than a Mutual Fund in a Taxable Account?
Replies: 10
Views: 943

Re: Is an ETFs more "tax fair" than a Mutual Fund in a Taxable Account?

Yes I have the same question as the original poster. Is there any advantage to holding Admiral Shares at Vanguard vs. ETFs at another brokerage? I understand the difference in that one is a mutual fund and the other is an exchange-traded fund, but I don't understand what is the difference in terms ...
by kolea
Sat Apr 22, 2017 4:27 pm
Forum: Investing - Help with Personal Investments
Topic: Relatively "Safe" Place to Earn 2.5%-4%
Replies: 24
Views: 3079

Re: Relatively "Safe" Place to Earn 2.5%-4%

but are looking for relatively "safe" places to put the money to earn 2.5%-4% (or more). We would all like such a thing. But there is no such thing as a free lunch and if you're gonna get that return, it is going to cost you something and the currency for paying that is risk. So your ques...
by kolea
Sat Apr 22, 2017 4:20 pm
Forum: Investing - Help with Personal Investments
Topic: Rght Bond fund/s when interest rates rise?
Replies: 29
Views: 1543

Re: Rght Bond fund/s when interest rates rise?

Dear Bogleheads, I am wondering as interest rates rise, if I should be replacing total bond market fund in my portfolio with one or multiple of these: If you like TBM, I would stick with it. If interest rates rise and there is a fall in price, it will only be temporary, it will recover and you will...
by kolea
Fri Apr 21, 2017 3:07 pm
Forum: Investing - Theory, News & General
Topic: How inefficient is it to hold Total Bond Index in a taxable account?
Replies: 34
Views: 4021

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

This is easier to understand if you think about an individual bond. The price of a 5-year bond with a yield (to maturity) of 2.3% and a coupon rate of 3% is 103.27. The current yield, which is analogous to distribution yield for a fund, is 2.90% (=3/103.27). So current yield is higher than yield to...
by kolea
Fri Apr 21, 2017 1:41 pm
Forum: Investing - Theory, News & General
Topic: Bond fund Maturity vs Duration
Replies: 32
Views: 2092

Re: Bond fund Maturity vs Duration

FYI, in the industry nobody cares about term of the bond outside of new issues. Once a bond is issued the only thing people care about is the maturity date. For example, 3 year treasury futures can be settled with a newly issued 3 year note or either of the 2 bonds you quoted. Yes, and that was exa...
by kolea
Fri Apr 21, 2017 12:26 pm
Forum: Investing - Theory, News & General
Topic: Bond fund Maturity vs Duration
Replies: 32
Views: 2092

Re: Bond fund Maturity vs Duration

It is an amazing thing about bonds, that regardless of term and coupon, the yield will be the same for the same maturity . Duration. :D I think maturity is right. Here is an example from today's open market on US Treasuries. CUSPID: 912828ND8, Term: 10 years. Maturity date: 5/15/2020 (3 years). Cou...
by kolea
Fri Apr 21, 2017 3:14 am
Forum: Investing - Theory, News & General
Topic: Bond fund Maturity vs Duration
Replies: 32
Views: 2092

Re: Bond fund Maturity vs Duration

I think I know what maturity and duration are, but just to be sure: ⋅ Maturity: The time between a bond's issue date and the date its principle is paid back. No. Maturity is the time between today and the date its principal is paid back. What you said is the bond's term. Maturity is extre...
by kolea
Fri Apr 21, 2017 2:40 am
Forum: Investing - Theory, News & General
Topic: How inefficient is it to hold Total Bond Index in a taxable account?
Replies: 34
Views: 4021

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

Those are the TTM (Trailing Twelve Months) yields. If instead you compare the 30-Day SEC yields you have a different story. VWITX 30-Day SEC yield: 1.95% (Vanguard Intermediate-Term Tax-Exempt Fund Investor Shares) VFICX 30-Day SEC yield: 2.65% (Vanguard Intermediate-Term Investment-Grade Fund Inve...
by kolea
Thu Apr 20, 2017 8:39 pm
Forum: Investing - Theory, News & General
Topic: How inefficient is it to hold Total Bond Index in a taxable account?
Replies: 34
Views: 4021

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

Just to make it more complicated, because municipal bonds generally have lower returns than their taxable equivalents, I have often heard that said, but looking at today's yield curve for corporates and municipal bonds I see: "A" rated, 5-year maturity. Corporate = 2.67%, Municipal = 3.57...
by kolea
Thu Apr 20, 2017 8:21 pm
Forum: Investing - Theory, News & General
Topic: I don't understand the case for EE bonds
Replies: 184
Views: 8199

Re: I don't understand the case for EE bonds

lack_ey wrote:Median expectations of inflation are probably under 2.5% for the next 20 years.


I saw that there has been a down-grading of inflation expectations by those who prognosticate on such things, but I wonder if predicting inflation is any more accurate than predicting interest rates or equity markets.
by kolea
Thu Apr 20, 2017 6:52 pm
Forum: Investing - Help with Personal Investments
Topic: TIPS auction April 20, 2017. Anyone participating?
Replies: 7
Views: 1014

Re: TIPS auction April 20, 2017. Anyone participating?

I bought 14, so about $14k. Goal is to ladder them so I will repeat this next April although I am toying with the idea of 6-month rungs of $12k each for a total of $120k in the TIPS ladder.
by kolea
Thu Apr 20, 2017 3:20 pm
Forum: Investing - Help with Personal Investments
Topic: TIPS auction April 20, 2017. Anyone participating?
Replies: 7
Views: 1014

Re: TIPS auction April 20, 2017. Anyone participating?

As an FYI.... Price was $1008.65 and coupon = 0.125%. By my calculation that comes out to YTM = 0%.

At least it is not negative which I was worried about.
by kolea
Thu Apr 20, 2017 3:13 pm
Forum: Investing - Theory, News & General
Topic: Site to measure individual bond's performance
Replies: 2
Views: 286

Re: Site to measure individual bond's performance

I recently read The Bond Book by Annette Thau. In it she touts these sites:

https://emma.msrb.org/

http://www.finra.org/

I think you can search by CUSP in either of these.
by kolea
Wed Apr 19, 2017 10:14 pm
Forum: Investing - Help with Personal Investments
Topic: TIPS auction April 20, 2017. Anyone participating?
Replies: 7
Views: 1014

Re: TIPS auction April 20, 2017. Anyone participating?

Thanks #Cruncher!

Yes, this will be purchased within an IRA. Some yield would be nice but goal #1 is preservation of real principal. So this is Cash++.
by kolea
Tue Apr 18, 2017 5:59 pm
Forum: Personal Finance (Not Investing)
Topic: Did anything surprise you in your 2016 taxes?
Replies: 82
Views: 6222

Re: Did anything surprise you in your 2016 taxes?

I expected to be in the 25% bracket and made pre-payments based on that. We spent less in 2016, so withdrew less than I estimated and ended up in the 15% bracket. All those pre-payments got refunded to me, plus some more. Nice surprise. But it will be short - we will be back in the 25% bracket in 4 ...
by kolea
Tue Apr 18, 2017 4:01 pm
Forum: Investing - Help with Personal Investments
Topic: TIPS auction April 20, 2017. Anyone participating?
Replies: 7
Views: 1014

TIPS auction April 20, 2017. Anyone participating?

I want to buy some TIPS at the US Treasury auction this week. They are 5-year TIPS. This will be my first time doing this. Any tips (no pun intended!)? Any idea what the yield will come in at? I am making a non-competitive bid. Probably $16k. My plan is to ladder them, 1-year apart, so will repeat n...
by kolea
Tue Apr 18, 2017 3:26 pm
Forum: Investing - Theory, News & General
Topic: Bond fund dividend accrual-daily vs monthly
Replies: 5
Views: 512

Re: Bond fund dividend accrual-daily vs monthly

It is probably reflected in the price. As the fund accrues interest payments throughout the month from all of the bonds it holds, its NAV goes up correspondingly. When the fund makes a distribution, the NAV should go down by the amount of the distribution. So whatever you sold it for, the NAV (and h...
by kolea
Tue Apr 18, 2017 8:44 am
Forum: Personal Consumer Issues
Topic: WiFi Security
Replies: 4
Views: 537

Re: WiFi Security

If the entire apartment building is using the same passphrase to access the wireless network, in principle anyone can decode someone else's network traffic. VPN is the typical solution to that but that is just one more thing to deal with. Your daughter might complain to the building owner and get th...
by kolea
Mon Apr 17, 2017 9:23 pm
Forum: Personal Consumer Issues
Topic: Hearing aid 101
Replies: 78
Views: 6355

Re: Hearing aid 101

hearing loss because of not hearing clearly I believe that this is my problem and I haven't really found a satisfactory solution. I was out visiting friends recently who were showing me their new Amazon Echo. I had difficulty understanding Alexa even at a fairly high volume level. A few evenings pr...
by kolea
Sun Apr 16, 2017 2:27 pm
Forum: Investing - Theory, News & General
Topic: Ben Carlson Drawdown Chart
Replies: 17
Views: 3297

Re: Ben Carlson Drawdown Chart

LadyGeek wrote:Here's a better link: Guide to the Markets - J.P. Morgan Asset Management, then "Download Guide".


That is a great set of data. Lots of interesting facts in there. Page 65 has a nice illustration on benefits of rebalancing.

Thanks for posting that!
by kolea
Sun Apr 16, 2017 11:07 am
Forum: Investing - Theory, News & General
Topic: PIMCO - active management outperforms for bonds
Replies: 8
Views: 1064

Re: PIMCO - active management outperforms for bonds

It would not surprise me at all that active management of bonds would beat passive. Bonds are not exactly commodities. My understanding is that Vanguard pays Wellington Consulting to help select corporate and Muni bonds. That makes sense for bonds that are rated on the low end of investment grade - ...
by kolea
Thu Apr 13, 2017 11:54 pm
Forum: Investing - Help with Personal Investments
Topic: Alternative sources of return
Replies: 11
Views: 938

Re: Alternative sources of return

Fans of REITs seem to think they are uncorrelated with equities. Risk is high but return is commensurate with risk. Seems to fit your criteria.
by kolea
Thu Apr 13, 2017 9:33 pm
Forum: Investing - Theory, News & General
Topic: Delaying SS (or not) and the tax torpedo
Replies: 41
Views: 4358

Re: Delaying SS (or not) and the tax torpedo

I haven't read everything in the thread, but it is fundamentally wrong to look at the decision about delaying SS and consider it in the context of market returns. Delaying SS is like buying an inflation-adjusted SPIA. Here is a previous post (I'm on my phone, so it's too complicated to create the r...
by kolea
Thu Apr 13, 2017 12:14 am
Forum: Personal Finance (Not Investing)
Topic: Turbo Tax woes - how to contact TT?
Replies: 22
Views: 1283

Re: Turbo Tax woes - how to contact TT?

Was the data showing in the right place on the 1040 you reviewed prior to sending the return? I'm still a bit confused as to whether the e-file record is the problem or the actual 1040 is wrong too. What shows up on the 1040 you printed prior to filing? No, the e-filed 1040 was wrong but I did not ...
by kolea
Wed Apr 12, 2017 4:56 pm
Forum: Personal Finance (Not Investing)
Topic: Turbo Tax woes - how to contact TT?
Replies: 22
Views: 1283

Re: Turbo Tax woes - how to contact TT?

Yes I am expecting a refund. Pretty substantial one since I made prepayments using the 25% bracket for the estimate and we ended up in the 15% bracket. But I can wait. It is just annoying that TT has this bug and other TT users have been complaining about it for 2 years and they won't fix it. So, if...
by kolea
Wed Apr 12, 2017 4:39 pm
Forum: Personal Finance (Not Investing)
Topic: Turbo Tax woes - how to contact TT?
Replies: 22
Views: 1283

Re: Turbo Tax woes - how to contact TT?

For TurboTax Online users – sign in to your account, click Contact and type in your question (to talk to a live expert you need to be in a paid version of TurboTax). :) Good luck I paid for TT. And I tried what you suggested. No replies. So I just want to send them an email and ask someone, or even...
by kolea
Wed Apr 12, 2017 4:36 pm
Forum: Personal Finance (Not Investing)
Topic: Turbo Tax woes - how to contact TT?
Replies: 22
Views: 1283

Re: Turbo Tax woes - how to contact TT?

It would be unusual to get a letter from the IRS regarding a 2016 return this early. What exactly did the letter say? Why unusual? I filed the form March 5 and got the letter a month later. The letter said to send then a hard copy of the 1040 and hard copies of all withholdings incuding prepayments...
by kolea
Wed Apr 12, 2017 4:19 pm
Forum: Personal Finance (Not Investing)
Topic: Turbo Tax woes - how to contact TT?
Replies: 22
Views: 1283

Re: Turbo Tax woes - how to contact TT?

No, on-line version. Once it is e-filed, there is no way to start over with on-line version.

Do you recommend the desktop version? Perhaps that is what I will do next year.
by kolea
Wed Apr 12, 2017 4:12 pm
Forum: Personal Finance (Not Investing)
Topic: Turbo Tax woes - how to contact TT?
Replies: 22
Views: 1283

Turbo Tax woes - how to contact TT?

The used TT to file our taxes this year. It seemed to go smoothly but the IRS contacted us and said there is a problem with the 1040, it was filled out incorrectly. The data is correct, TT just put it in the wrong box on the form. So, I looked for an email address for TT support, but there is none t...
by kolea
Wed Apr 12, 2017 3:21 pm
Forum: Investing - Theory, News & General
Topic: NBC News: First Pot-Focused Fund Lets Americans Legally Invest In Hot Biz
Replies: 13
Views: 1652

Re: NBC News: First Pot-Focused Fund Lets Americans Legally Invest In Hot Biz

I don't quite get how a fund can be created around the pot industry. It is still classified as a controlled drug by the DEA and money made from it is technically gains from a criminal enterprise and subject to forfeiture. Apparently that is not being enforced but it does worry banks enough that they...
by kolea
Wed Apr 12, 2017 3:08 pm
Forum: Investing - Theory, News & General
Topic: Rebalancing to control risk doesn't make sense to me
Replies: 160
Views: 9831

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

nisiprius wrote:And, in my cynical opinion, the reason why this kind of rebalancing gets so much attention might be that it is a service that advisors can offer.


I share the cynicism. And it extends to some of the other recommendations one gets from the industry.
by kolea
Wed Apr 12, 2017 12:23 pm
Forum: Investing - Theory, News & General
Topic: Delaying SS (or not) and the tax torpedo
Replies: 41
Views: 4358

Re: Delaying SS (or not) and the tax torpedo

You do not give your account details but in general once you elect to receive SS early you have a 'fixed' amount of income which limits your ability to minimize taxes. That means you have limited your Roth conversion capability as well as the amount of SS (15%) which will be untaxed in later years....
by kolea
Wed Apr 12, 2017 11:14 am
Forum: Investing - Theory, News & General
Topic: Delaying SS (or not) and the tax torpedo
Replies: 41
Views: 4358

Re: Delaying SS (or not) and the tax torpedo

SS is at most taxed at 85% and many states, including mine, do not tax Social Security. In the 15% tax bracket this means that the most my SS will be taxed is 12.75%. With 5% state taxes my taxable income will be taxed at 20%. Yes, I realized SS should be 85%. I did not do state tax modeling but I ...
by kolea
Wed Apr 12, 2017 10:42 am
Forum: Investing - Theory, News & General
Topic: Delaying SS (or not) and the tax torpedo
Replies: 41
Views: 4358

Re: Delaying SS (or not) and the tax torpedo

If you have enough money to fund your early retirement, defer SS as long as possible. If not, start taking it whenever you feel you really need it to avoid significant immediate lifestyle compromise. It's that simple. Forget about break even ages, maximizing benefits in an unknown world, etc. What ...
by kolea
Tue Apr 11, 2017 3:20 pm
Forum: Investing - Theory, News & General
Topic: Delaying SS (or not) and the tax torpedo
Replies: 41
Views: 4358

Re: Delaying SS (or not) and the tax torpedo

To tell the truth I did not even know about the torpedo until I did the back test to quantify Social Security delaying. So it was not something I expected to see. It sounds like it is well known. I guess I just rediscovered the wheel. :)
by kolea
Tue Apr 11, 2017 1:30 pm
Forum: Investing - Theory, News & General
Topic: Delaying SS (or not) and the tax torpedo
Replies: 41
Views: 4358

Delaying SS (or not) and the tax torpedo

Before I retired (in 2013) I ran many back tests on our portfolio and our projected spending habits. In all of those back tests I considered taxes to be a budgetary expense like any other expense and would be fairly constant and simply subtracted from the withdrawal. My main goal in all this testing...
by kolea
Tue Apr 11, 2017 11:20 am
Forum: Investing - Help with Personal Investments
Topic: Breaking up with my Financial Advisor
Replies: 37
Views: 2416

Re: Breaking up with my Financial Investor

I broke off a similar situation many years ago. I did it through email but I also prepped the FA by scheduling a meeting before that in which I told him I wanted to review performance and costs, so he knew it was probably coming. In the email in which I told him I was leaving, I explained the reason...
by kolea
Mon Apr 10, 2017 11:55 pm
Forum: Investing - Theory, News & General
Topic: "Did Declining rates actually matter"
Replies: 26
Views: 1993

Re: "Did Declining rates actually matter"

Very good article. Thanks for posting it. The really interesting thing for me, which is worth point out here, is this: The consistency of coupon and the varying influence of shift on returns (i.e. both positive and negative) means that coupon yield actually makes an excellent predictor of future ret...
by kolea
Mon Apr 10, 2017 2:00 pm
Forum: Investing - Theory, News & General
Topic: Value of having TIPS funds?
Replies: 35
Views: 3754

Re: Value of having TIPS funds?

It seems that many Bogleheads will not tolerate a moderate-to-high level of volatility in their fixed income allocation. "Bonds are for safety" and "Take your risk on the equity side" are reasonable mantras and many investors are wise to follow them. But in my opinion they shoul...
by kolea
Fri Apr 07, 2017 1:10 pm
Forum: Investing - Theory, News & General
Topic: Usefulness of bonds for equity investors who don't necessarily want them?
Replies: 50
Views: 2910

Re: Usefulness of bonds for equity investors who don't necessarily want them?

Historically the portfolio that has performed the best, the most often, is 100/0, for accumulation phase. Things get a little more complicated when you are spending down during retirement. For our situation, I found the optimum historical portfolio (as determined by highest ending assets, that would...
by kolea
Fri Mar 31, 2017 5:49 pm
Forum: Investing - Theory, News & General
Topic: nice short piece on the math of factor investing
Replies: 202
Views: 9963

Re: nice short piece on the math of factor investing

Somewhere in this thread the comment was made that TSM does not expose itself to the value factor because it has growth exposure that offsets value. There is no value (or growth) factor in the FF model. Yes I realize that. I did not say exposure to the growth factor , just to growth. I was leveragi...
by kolea
Fri Mar 31, 2017 5:41 pm
Forum: Investing - Theory, News & General
Topic: nice short piece on the math of factor investing
Replies: 202
Views: 9963

Re: nice short piece on the math of factor investing

Kolea, I think idiosyncratic risk = single stock risk. I think it's fair to say that a certain number of stocks is required to diversify away the risk inherent in any single stock. I think single stock risk is effectively diversified away anytime a fund has at least perhaps greater than 500 individ...
by kolea
Fri Mar 31, 2017 4:23 pm
Forum: Investing - Theory, News & General
Topic: nice short piece on the math of factor investing
Replies: 202
Views: 9963

Re: nice short piece on the math of factor investing

But 4k is plenty enough to eliminate/minimize idiosyncratic risks, which is what diversifying across more stocks provides. But it cannot just be the number of stocks which determines if the portfolio has the minimum amount of idiosyncratic risk, it is how those stocks are apportioned across all pos...
by kolea
Thu Mar 30, 2017 12:00 pm
Forum: Investing - Theory, News & General
Topic: anyone factor in future inheritance?
Replies: 78
Views: 4735

Re: anyone factor in future inheritance?

Many years ago I put an inheritance into our retirement plan. But the person was 90, I was the executor to the estate, and I knew exactly what was in the will and what the obligations and liabilities were for the person. Seemed reasonable to me. Bottom line - whether you put it in your plan depends ...

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