Search found 1232 matches

by kolea
Wed Apr 26, 2017 4:30 pm
Forum: Investing - Help with Personal Investments
Topic: $1m capital gains, worth it to simplify and index?
Replies: 46
Views: 4929

Re: $1m capital gains, worth it to simplify and index?

kolea is using a definition of "tax bracket" that is different from the common usage around here. Whatever name one uses for it, one thing that "kolea's Tax Bracket" (kTB) does not to do is determine what tax rate(s) you will be paying on your LT cap gains. (And that was a large part of the point o...
by kolea
Wed Apr 26, 2017 4:21 pm
Forum: Investing - Help with Personal Investments
Topic: Retirement income for 50+ years?
Replies: 167
Views: 17176

Re: Retirement income for 50+ years?

The year 2000 is pretty well known as probably the worst year to retire out of the last 100 years. If that's true, then it pretty much verifies the safety of the 4% plus CPI withdrawal rate for 30 years, the stated withdrawal period of the major SWR studies. I get your point but it doesn't really v...
by kolea
Wed Apr 26, 2017 4:02 pm
Forum: Investing - Help with Personal Investments
Topic: $1m capital gains, worth it to simplify and index?
Replies: 46
Views: 4929

Re: $1m capital gains, worth it to simplify and index?

Just a note on that: Your tax bracket is determined entirely by ordinary income (salary, interest, ordinary dividends, short-term cap gains). If your stock and other holdings are all long term, it will have no effect upon your tax bracket. You could sell it all in one year. It is my understanding t...
by kolea
Wed Apr 26, 2017 2:28 pm
Forum: Investing - Help with Personal Investments
Topic: $1m capital gains, worth it to simplify and index?
Replies: 46
Views: 4929

Re: $1m capital gains, worth it to simplify and index?

My takeaways are: 1) take a few years to unwind to stay in the 15% LTCG bracket Just a note on that: Your tax bracket is determined entirely by ordinary income (salary, interest, ordinary dividends, short-term cap gains). If your stock and other holdings are all long term, it will have no effect up...
by kolea
Wed Apr 26, 2017 1:22 pm
Forum: Investing - Help with Personal Investments
Topic: Retirement income for 50+ years?
Replies: 167
Views: 17176

Re: Retirement income for 50+ years?

But then in the same article, he shows that people who retired in 2000, anyone with a large allocation to stocks is near broke (because we had TWO crashes in 10 years - major sequence of returns risk), but someone who was 50/50 from 2000-2016 is still doing well. The author never really discusses t...
by kolea
Wed Apr 26, 2017 9:55 am
Forum: Investing - Help with Personal Investments
Topic: ETF verses Mutual Funds.
Replies: 37
Views: 2391

Re: ETF verses Mutual Funds.

Personal preference is right - it annoys me for no good reason that when I sell a mutual fund I have no idea what I am actually going to get for it. Yes I can guestimate it based on what the market did today and what the NAV was yesterday and it will probably be close but it just irks me that I can'...
by kolea
Wed Apr 26, 2017 9:27 am
Forum: Investing - Theory, News & General
Topic: Schwab Vs. Vanguard?
Replies: 35
Views: 8781

Re: Schwab Vs. Vanguard?

I like my Schwab checking account but I prefer Vanguard for my investments. Schwab's index offerings are really quite slim. I like Schwab customer service. They have been really easy to work with. They Express mail, overnight paperwork to us when we really needed it fast, on their dime. I like to u...
by kolea
Tue Apr 25, 2017 9:26 pm
Forum: Investing - Help with Personal Investments
Topic: $1m capital gains, worth it to simplify and index?
Replies: 46
Views: 4929

Re: $1m capital gains, worth it to simplify and index?

I went through the hell of moving from a portfolio of stocks to index funds. I was going to do it in 2 years but after the tax hit of year-1 I backed off and did most of it in the next 3 years but still have maybe 20% in stocks. I sell those whenever I dip into equities for withdrawals. I think it i...
by kolea
Tue Apr 25, 2017 9:00 pm
Forum: Investing - Help with Personal Investments
Topic: Retirement income for 50+ years?
Replies: 167
Views: 17176

Re: Retirement income for 50+ years?

I would like to support my family on $300k/yr after-tax in today's dollars for the rest of my life, which hopefully will be 50+ more years. $300k after-tax is going to be close to $400k pre-tax. Maybe I am wrong, but I think the tax rate won't/does not need to be that high - 25% ($100K/$400K). You ...
by kolea
Tue Apr 25, 2017 7:22 pm
Forum: Investing - Help with Personal Investments
Topic: Retirement income for 50+ years?
Replies: 167
Views: 17176

Re: Retirement income for 50+ years?

I would like to support my family on $300k/yr after-tax in today's dollars for the rest of my life, which hopefully will be 50+ more years. $300k after-tax is going to be close to $400k pre-tax. That is getting close to 4% of assets. The rough-guess is 4% of assets is the maximum you can safely wit...
by kolea
Tue Apr 25, 2017 5:34 pm
Forum: Investing - Help with Personal Investments
Topic: Does Portfolio Size Influence Stock/Bond Allocation?
Replies: 43
Views: 5168

Re: Does Portfolio Size Influence Stock/Bond Allocation?

I can honestly say that if I had, say, $100M, I would not have a 65/35 AA. Well maybe I would for securities but I would look outside of the securities markets to invest a big chunk of that money. Does the same thinking apply for a $10M chunk of money? Probably. So for me, at some point I would want...
by kolea
Tue Apr 25, 2017 3:00 pm
Forum: Investing - Help with Personal Investments
Topic: Rght Bond fund/s when interest rates rise?
Replies: 31
Views: 2745

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

sorry I could not figure out what UST is? could you tell me the fund names? I am also curious what ratio you are using for each. UST = US Treasuries. You should not follow my ratio since my goals and risk factors won't be the same as yours. But here is what the securities are: TIPS bonds (5-year bo...
by kolea
Tue Apr 25, 2017 2:31 pm
Forum: Investing - Theory, News & General
Topic: Splitting Growth And Value Leads To A Worse Return
Replies: 36
Views: 5402

Re: Splitting Growth And Value Leads To A Worse Return

There is a persistent 'rebalancing bonus' myth. It simply does not exist. People most often think that it applies to stock/bond portfolios, where rebalancing merely keeps the desired risk level in check but does not improve returns (in that context, it has typically reduced historical returns, ofte...
by kolea
Tue Apr 25, 2017 1:48 pm
Forum: Investing - Theory, News & General
Topic: Thinking in real vs. nominal
Replies: 46
Views: 3910

Re: Thinking in real vs. nominal

Does anyone actually think you don't need an inflation adjustment at all? Meaning you can predict nominal returns and expect that to buy what it can buy now? That would be pretty crazy. I doubt that but you need to ask the OP what his intent was. I think the bottom line here is that most people do ...
by kolea
Tue Apr 25, 2017 12:50 pm
Forum: Investing - Theory, News & General
Topic: What ratio of large:mid:small to approximate Total Stock Market Index?
Replies: 3
Views: 650

Re: What ratio of large:mid:small to approximate Total Stock Market Index?

I would ask your 401k committee why they don't have VTSAX available. The entire VTSAX fund with all share classes is much larger than VFIAX across all its share classes. It will make life much easier for you.
by kolea
Tue Apr 25, 2017 12:33 pm
Forum: Investing - Theory, News & General
Topic: Thinking in real vs. nominal
Replies: 46
Views: 3910

Re: Thinking in real vs. nominal

As an example, let's say I plan to buy a new Mustang convertible in ten years to replace one I bought recently. How does a "Realist" approach this differently from a "Nominalist"? I am only guessing here since I would not do this, but I believe a nominalist would take the annualized nominal growth ...
by kolea
Mon Apr 24, 2017 11:44 pm
Forum: Investing - Theory, News & General
Topic: Thinking in real vs. nominal
Replies: 46
Views: 3910

Re: Thinking in real vs. nominal

For those of you who do your planning strictly in terms of real growth, is the motivation simply that it makes projection easier because it eliminates the variable of inflation? The variable of inflation can never be eliminated. You either adjust costs upward to account for future inflation, or you...
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: 22
Views: 3641

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: 19
Views: 2131

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: 31
Views: 2745

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: 2097

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: 2097

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: 3315

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 instrument ...
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: 1348

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: 3739

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 question boils...
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: 31
Views: 2745

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: 40
Views: 6146

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: 2923

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: 2923

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: 2923

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 extremely importa...
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: 40
Views: 6146

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: 40
Views: 6146

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% I suppos...
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: 322
Views: 23721

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: 1250

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: 1250

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: 412

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: 1250

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: 83
Views: 8370

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: 1250

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: 791

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: 731

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: 95
Views: 9681

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: 18
Views: 4496

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: 1400

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: 1302

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: 5022

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: 1571

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: 1571

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: 1571

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: 1571

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...