Search found 923 matches

by rai
Wed May 25, 2016 8:35 am
Forum: Investing - Help with Personal Investments
Topic: Short term bond funds?
Replies: 4
Views: 251

Re: Short term bond funds?

Why would you shorten your bond duration in a holding aimed at a 12+ year time frame? As they say, bonds should be more stable, less price movement and corporate bond funds have more price movement than say government bonds. Also, if your argument was that my timeframe doesn't need any short term b...
by rai
Wed May 25, 2016 8:05 am
Forum: Investing - Help with Personal Investments
Topic: Short term bond funds?
Replies: 4
Views: 251

Short term bond funds?

I've a small question, not any big deal. I am trying to figure out if having any short term bond fund is worth while. My situation is that my bonds are around 25% of my savings. Of the bonds all VG ETF or Admiral class. 50% in total bond market MF 26% in intermediate corporate bond ETF. <-----------...
by rai
Wed May 25, 2016 7:50 am
Forum: Personal Finance (Not Investing)
Topic: FIRECalc
Replies: 7
Views: 1120

Re: FIRECalc

Did you change anything regarding the withdrawal method such as the 95% rule or anything on the back page such as leave an inheritance (or other options on the back page?).
by rai
Wed May 25, 2016 7:42 am
Forum: Investing - Help with Personal Investments
Topic: Selling VTI Covered Calls
Replies: 20
Views: 1066

Re: Selling VTI Covered Calls

If you want to be long in a stock, if you want to own TESLA for example but not at its current price, you can sell a low out of the money put and get real money and if the stock falls enough you buy it. Some people put a low limit order to buy a stock, this is somewhat the same expect you get paid t...
by rai
Tue May 24, 2016 6:30 pm
Forum: Personal Consumer Issues
Topic: How much do you spend on trips/vacations?
Replies: 49
Views: 2739

Re: How much do you spend on trips/vacations?

It varies widely but I'd guess between 5 and 10 % we don't skimp on leasure activities.
by rai
Tue May 24, 2016 6:03 pm
Forum: Investing - Help with Personal Investments
Topic: Selling VTI Covered Calls
Replies: 20
Views: 1066

Re: Selling VTI Covered Calls

I don't want to drag this option talk out if some people don't find that it belongs on this forum, just politely say so. I just wanted to point out if you have a surplus of money or a superabundance of savings it's possible to make money, what I'm saying is don't gamble with the rent money. But if y...
by rai
Tue May 24, 2016 5:25 pm
Forum: Investing - Help with Personal Investments
Topic: Selling VTI Covered Calls
Replies: 20
Views: 1066

Re: Selling VTI Covered Calls

I really don't bother with covered calls. Selling low out of the money puts however on quality companies has never failed me. True, my experience is not all encompassing but even when I get called out and have to buy the beaten down shares, often those forced to buy shares are the best buys of all. ...
by rai
Tue May 24, 2016 5:06 pm
Forum: Investing - Help with Personal Investments
Topic: Selling VTI Covered Calls
Replies: 20
Views: 1066

Re: Selling VTI Covered Calls

Timelord, you are missing quite a bit. Options are complex. Two types of options are easy (for me) to explain they involve selling options puts and calls (i.e. getting paid) I could explain some if you are interested maybe a PM if you are interested, I can tell you of my personal ups and downs (what...
by rai
Tue May 24, 2016 4:57 pm
Forum: Investing - Help with Personal Investments
Topic: Selling VTI Covered Calls
Replies: 20
Views: 1066

Re: Selling VTI Covered Calls

I would think the strategy works best in the tax deferred space and just repurchase your position immediately if it gets called away. But that seems far too easy so what am I missing? I would think the bigger problem for some might be having to hold the position in the face of a vicious downturn. Y...
by rai
Tue May 24, 2016 4:04 pm
Forum: Investing - Help with Personal Investments
Topic: Bond ETF vs Bond Mutual Fund
Replies: 18
Views: 912

Re: Bond ETF vs Bond Mutual Fund

I looked at Morningstar hypothetical $10k start there was a few dollars difference in favor of the Mutual fund over a few year period but nothing jaw dropping.
by rai
Tue May 24, 2016 3:15 pm
Forum: Investing - Help with Personal Investments
Topic: Bond ETF vs Bond Mutual Fund
Replies: 18
Views: 912

Re: Bond ETF vs Bond Mutual Fund

Do you understand what FSITX is? I'm sorry, I'm not talking about BND, I did use that above in my question but was just asking about in general and used BND as an example. The ETFs I'm talking about are intermediate corporate or intermediate gov fund. The ETFs have ER of 0.1 Even BND (.06)is cheape...
by rai
Tue May 24, 2016 3:03 pm
Forum: Investing - Help with Personal Investments
Topic: Bond ETF vs Bond Mutual Fund
Replies: 18
Views: 912

Re: Bond ETF vs Bond Mutual Fund

Well if Fidelity does not offer Admaral share VG funds then I'm not going to be able to do anything. I suppose I could transfer all over to VG (should have done that from the start).
by rai
Tue May 24, 2016 1:35 pm
Forum: Investing - Help with Personal Investments
Topic: Bond ETF vs Bond Mutual Fund
Replies: 18
Views: 912

Re: Bond ETF vs Bond Mutual Fund

Why have an asset allocation if you are never going to rebalance it? One would expect the equity suballocation to eventually comprise the majority share of the portfolio and therefore its behavior will determine the outcome of the fund. There's nothing wrong with a closed-end fund in the sense that...
by rai
Tue May 24, 2016 1:10 pm
Forum: Investing - Help with Personal Investments
Topic: Bond ETF vs Bond Mutual Fund
Replies: 18
Views: 912

Re: Bond ETF vs Bond Mutual Fund

every month, this account drops in value when these ETFs go ex-dividend and a few days later recovers in value when the dividend is paid. This can be disconcerting to some investors. Apparently, it is not disconcerting to you. . I'm not disconcerted by much :wink: I'm just trying to decide if it's ...
by rai
Tue May 24, 2016 9:19 am
Forum: Investing - Help with Personal Investments
Topic: Bond ETF vs Bond Mutual Fund
Replies: 18
Views: 912

Re: Bond ETF vs Bond Mutual Fund

^The second URL I linked will let you answer that question for yourself. Thanks, is it your recommendation if I have several VG bond ETFs with divided reinvestment (at Fidelity) in an IRA so no tax consequences that I change to mutual fund if it's the same ER so as not to get the friction? We're ta...
by rai
Tue May 24, 2016 6:57 am
Forum: Investing - Help with Personal Investments
Topic: Bond ETF vs Bond Mutual Fund
Replies: 18
Views: 912

Re: Bond ETF vs Bond Mutual Fund

^ does the 'friction' as you call it such as settlement date or bid-ask ratio cost any money in the long run? I mean has this been demonstrated? If I have $100K in VG total bond mutual fund and $100K in BND (ETF) will there be a difference in the balance after a year or number of years?
by rai
Mon May 23, 2016 7:16 am
Forum: Personal Consumer Issues
Topic: WW2 Books & Education
Replies: 86
Views: 2472

Re: WW2 Books & Education

While not technically a book about WWII 'The rise and fall of the third Reich' is very good (essential) there are more newer books regarding Hitler but there is something special about this book.
by rai
Sun May 22, 2016 12:44 pm
Forum: Investing - Help with Personal Investments
Topic: Help understanding options
Replies: 4
Views: 452

Re: Help understanding options

I have been selling options (mainly puts) for several years and making a decent profit. It's certainly not for everyone and not something I'd advise someone else to do. BUT overall (IMO) selling puts (low out of the money puts) is not horrible. Just as an example I could sell a put Jan 2017 for Tesl...
by rai
Sat May 21, 2016 2:02 pm
Forum: Investing - Help with Personal Investments
Topic: DODIX [Dodge & Cox Income]
Replies: 52
Views: 1715

Re: DODIX

I went through fifteen years of tracking net worth and found in that period the largest monthly increase in net worth was +5.75% and the largest monthly loss in net worth was -7.44%. If that were related to $100,000 in value that would be up about $6,000 or down $7,500 in a single month, at the ext...
by rai
Sat May 21, 2016 1:43 pm
Forum: Investing - Help with Personal Investments
Topic: DODIX [Dodge & Cox Income]
Replies: 52
Views: 1715

Re: DODIX

I'm glad I got out it's gone down even further. I would have lost another $50 at this point to hold on to it. By and large you will get advice to not really look at a specific day or week or month or year return. It's a long game. But also you will find that mainly not recommended to time the marke...
by rai
Sat May 21, 2016 1:15 pm
Forum: Investing - Help with Personal Investments
Topic: Dividends [What funds pay them?]
Replies: 33
Views: 1486

Re: Dividends

Thank you rai. Been years since I read those books. But they really spell it out for you with little examples and spoon feed you. Assume you know nothing. I think if you are OK with your debt, it's safe to skip straight to Investing for Dummies. I read other books (different author) was called Bond...
by rai
Sat May 21, 2016 12:53 pm
Forum: Investing - Help with Personal Investments
Topic: How do I invest in artificial intelligence?
Replies: 59
Views: 3439

Re: How do I invest in artificial intelligence?

Companies like Google and IBM seem to be big players in that space, but I think AI is really a marketing term for machine learning. True AI is far from reality, and may not ever be achievable. IBM (Watson is all over the TV) and Google (I believe bought a robot company and) will have driving cars l...
by rai
Sat May 21, 2016 11:18 am
Forum: Investing - Help with Personal Investments
Topic: When to sell?
Replies: 86
Views: 4096

Re: When to sell?

Hi, I have not read this whole thread. but I just wanted to give a few bits of wisdom. I bet you already have lots of great advice. Primarily, it's not necessary or good to look at an investment and say it's lost $400 or (any number) and think therefore it's not good. Basically it's the same investm...
by rai
Sat May 21, 2016 9:30 am
Forum: Personal Finance (Not Investing)
Topic: "Does delaying Social Security make sense?"
Replies: 12
Views: 1533

Re: "Does delaying Social Security make sense?"

Myself, I'm married and my wife is a year and a half younger. I plan to take my SS when my wife hits 66 and then she'll receive half that as 'spousal benefit'. Then we'll wait for her own benefit until she reaches 70 so she'll get het maximum benefit. Of course this assumes you have the savings to b...
by rai
Sat May 21, 2016 9:28 am
Forum: Personal Finance (Not Investing)
Topic: "Does delaying Social Security make sense?"
Replies: 12
Views: 1533

Re: "Does delaying Social Security make sense?"

I've said it a hundred times. People think they want to get something back after putting in money for all these years and figure if they file asap they will get something back whereas if they wait until 66 or 70 they might die and not collect anything. But the point I always make is that if you die,...
by rai
Sat May 21, 2016 8:27 am
Forum: Investing - Help with Personal Investments
Topic: Dividends [What funds pay them?]
Replies: 33
Views: 1486

Re: Dividends

these two books are very nice for beginners. The second is not just about investing but covers debt and investing. Look at the table of contents there might be some overlap but I've read and recommended both books often. http://www.amazon.com/Investing-Dummies-Eric-Tyson/dp/1118884922?ie=UTF8&ke...
by rai
Fri May 20, 2016 5:16 pm
Forum: Investing - Help with Personal Investments
Topic: Adding a differnet Bond fund to my retirement account?
Replies: 6
Views: 439

Re: Adding a differnet Bond fund to my retirement account?

Respectfully, I would pass on the non Vanguard funds and quite frankly I do not see a reason to add a fifth bond fund. You did ask for opinions. :) I appreciate that. Not a fan of TIPs at the moment, don't see much there but maybe when I get closer to retirement or if it seems like the prevailing o...
by rai
Fri May 20, 2016 3:47 pm
Forum: Investing - Help with Personal Investments
Topic: Terrible 401k options...what to do?
Replies: 17
Views: 851

Re: Terrible 401k options...what to do?

I want to thank everyone for their comments and suggestions. I put together a little sheet outlining our plan vs other plans for my partners and they seemed to "get it" this time. We have our financial person already shopping quotes from Employee Fiduciary and Ubiquity. Good to hear, thes...
by rai
Fri May 20, 2016 1:24 pm
Forum: Investing - Help with Personal Investments
Topic: Terrible 401k options...what to do?
Replies: 17
Views: 851

Re: Terrible 401k options...what to do?

One more point. If nothing else, ask the other members even if they are happy with their fund choices for themselves, why won't the administrators at least offer a S&P500 index and a TBM fund. The reason is impossibly clear. There is no extra money to be paid back to the administrators it's quit...
by rai
Fri May 20, 2016 1:20 pm
Forum: Investing - Help with Personal Investments
Topic: Terrible 401k options...what to do?
Replies: 17
Views: 851

Re: Terrible 401k options...what to do?

My 401K was very bad, I can't tell if it was as bad or not because our administration fees were separate. But our Mutual fund ERs were all 1% or more. For years, I got into a letter (Email) writing campaign with the other members and telling them how were being robbed by the slick talking sales team...
by rai
Fri May 20, 2016 9:50 am
Forum: Investing - Help with Personal Investments
Topic: Adding a differnet Bond fund to my retirement account?
Replies: 6
Views: 439

Re: Adding a differnet Bond fund to my retirement account?

PS While, I know maybe I'm over thinking this and maybe this is a slice and dice approach that is much ado about nothing. But I was curious just what people think about having all the eggs in one basket (so to speak) as opposed to spreading the best around. I'm 50, wife 49 and we are well funded and...
by rai
Fri May 20, 2016 9:46 am
Forum: Investing - Help with Personal Investments
Topic: Adding a differnet Bond fund to my retirement account?
Replies: 6
Views: 439

Adding a differnet Bond fund to my retirement account?

I know this is anti Bogglehead, I know that simplicity is advised (or less is more is sometimes what's advised). But I wanted to hear the downside of getting something other than Vanguard Total Bond Fund into my 401K. We have a roll over IRA which I can put anything, but I'm just about at the max of...
by rai
Fri May 20, 2016 8:19 am
Forum: Investing - Help with Personal Investments
Topic: New Physician Looking for Advice
Replies: 18
Views: 2107

Re: New Physician Looking for Advice

I was curious what is the student loan forgiveness?
by rai
Thu May 19, 2016 2:15 pm
Forum: Personal Finance (Not Investing)
Topic: What age did you reach 100K networth?
Replies: 295
Views: 47482

Re: What age did you reach 100K networth?

Have to be ~35 for me too, as we had multiple student loans and two physicians so we didn't make much until 12 years post HS.
by rai
Thu May 19, 2016 12:22 pm
Forum: Personal Finance (Not Investing)
Topic: 15 vs 30 yr mortgage
Replies: 123
Views: 13725

Re: 15 vs 30 yr mortgage

On a $200,000 loan, and a term of 15 years, the difference between an interest rate of 2.75% and 3.25% is $50 per month. That is what the "cost" would be of the flexibility of getting the 30 year loan and paying it off on the accelerated 15 year timeframe. True, but that's $9000 actual mo...
by rai
Wed May 18, 2016 8:07 pm
Forum: Personal Finance (Not Investing)
Topic: Take my SS at 62 or wait?
Replies: 123
Views: 9188

Re: Take my SS at 62 or wait?

But the rule of thumb is you'd expect Bogleheads to have 20+ years worth of spending *saved*. I'd love to see data on how many people in the US actually accumulate that much by retirement. I'd be shocked if it was more than 5%. True, but this is Boglehead forum, the people here (by and large) are s...
by rai
Wed May 18, 2016 12:15 pm
Forum: Personal Finance (Not Investing)
Topic: Take my SS at 62 or wait?
Replies: 123
Views: 9188

Re: Take my SS at 62 or wait?

I believe (baring some forced retirement scenario) which I don't think we are talking about. But the rule of thumb is you'd expect Bogleheads to have 20+ years worth of spending *saved*. IOW if you plan for $100k per year you're probably sitting on $2-3M in some form or another. So IMO 4 extra years...
by rai
Wed May 18, 2016 7:01 am
Forum: Personal Finance (Not Investing)
Topic: Take my SS at 62 or wait?
Replies: 123
Views: 9188

Re: Take my SS at 62 or wait?

Agree completely with the above post. It's like saying your odds of being struck by lighting is very small say 1 in a million but to the person who is actually struck by lightning their odds are 100%. We see this in medicine where something is quite rare but the person who gets the condition it's no...
by rai
Tue May 17, 2016 1:59 pm
Forum: Personal Finance (Not Investing)
Topic: Take my SS at 62 or wait?
Replies: 123
Views: 9188

Re: Take my SS at 62 or wait?

But you as a person have more insight than a random life table.

Some races or family history or socioeconomic people live longer or shorter, if both my parents are alive and well in their mid-late 80s. Likely I'd live past the breakeven point than if my family had not lived as long.
by rai
Tue May 17, 2016 12:50 pm
Forum: Personal Finance (Not Investing)
Topic: Take my SS at 62 or wait?
Replies: 123
Views: 9188

Re: Take my SS at 62 or wait?

I forget the exact experiment but somewhat like a group of kids were asked if they'd like 3 M&M pieces right now or if they waited 20 minutes they could have a whole bag of them. Some of the kids picked the 3 pieces to get to sooner but to me that doesn't make a lot of sense. Edit, found the exp...
by rai
Tue May 17, 2016 12:36 pm
Forum: Personal Finance (Not Investing)
Topic: Take my SS at 62 or wait?
Replies: 123
Views: 9188

Re: Take my SS at 62 or wait?

IMO if you don't need the money wait til 70. The problem is never dying too soon but living too long. If you live to 96 years old, your going to receive so much more money by waiting it's not even funny. I'd rather have the extra money to spend in my 60s and 70s than in my 80s and 90s (very unlikel...
by rai
Tue May 17, 2016 7:00 am
Forum: Personal Finance (Not Investing)
Topic: Take my SS at 62 or wait?
Replies: 123
Views: 9188

Re: Take my SS at 62 or wait?

IMO if you don't need the money wait til 70. The problem is never dying too soon but living too long. If you live to 96 years old, your going to receive so much more money by waiting it's not even funny. Any thought of taking money before FRA is just a thought of taking the absolute lowest possible ...
by rai
Mon May 16, 2016 4:19 pm
Forum: Personal Finance (Not Investing)
Topic: 15 vs 30 yr mortgage
Replies: 123
Views: 13725

Re: 15 vs 30 yr mortgage

what rate would you need to earn to have $61,939 in 15 years? (Bankrate, savings goal) Answer? 4.45 percent. Which is not quite as good as it had been. You mean 4.45% post tax dollars. I think some people will look at a number and think I'll get $61,939 in 15 years. But it's not really that number ...
by rai
Mon May 16, 2016 6:54 am
Forum: Personal Finance (Not Investing)
Topic: 15 vs 30 yr mortgage
Replies: 123
Views: 13725

Re: 15 vs 30 yr mortgage

I don't know your income situation; however, I'm going to assume that you are a two income family. The 30 year loan may be the best option if for some reason you find yourself in a one income situation. You may be able to make the mortgage payments on one income easier with the 30 year loan. Doubli...
by rai
Sun May 15, 2016 7:00 pm
Forum: Personal Finance (Not Investing)
Topic: 15 vs 30 yr mortgage
Replies: 123
Views: 13725

Re: 15 vs 30 yr mortgage

Sorry for the messy post. But my rates (I'm not locked in but just back of the envelope were like 2.75% for 15 year and 3.25% for 30 year). I have no idea to sort through the piles of math: Rate of return (just anyone's guess), taxes, mortgage interest phase outs, etc.. So bring it down to the simpl...
by rai
Sun May 15, 2016 6:47 pm
Forum: Personal Finance (Not Investing)
Topic: 15 vs 30 yr mortgage
Replies: 123
Views: 13725

Re: 15 vs 30 yr mortgage

Sorry to bring this topic back from the dead. But I'm also wrestling with the demon of 15 year vs 30 year mortgage. I'm 50 and will be retiring in 15 years (or less). we max out both out 401K and will until I retire. And we are in the highest possible tax bracket we have substantial savings in taxab...
by rai
Thu Apr 21, 2016 8:36 pm
Forum: Personal Finance (Not Investing)
Topic: Cannot Pay Huge Tax Burden
Replies: 107
Views: 9064

Re: Cannot Pay Huge Tax Burden

I find it hard to believe that there are people here advocating about how to game the system. That seems to be the point of many threads on this forum. What is a backdoor Roth, if not "gaming the system?" Unbelievable, some people are in the 50%+ marginal tax bracket and some people pay u...
by rai
Thu Apr 21, 2016 6:29 pm
Forum: Personal Finance (Not Investing)
Topic: Cannot Pay Huge Tax Burden
Replies: 107
Views: 9064

Re: Cannot Pay Huge Tax Burden

When you look at paying off the loan to avoid this situation, it is hard to make the math work out. Paying 300k to avoid a 200k charge isn't going to work. Instead of paying off the loan, you could save the money and come out ahead unless you get large income increases later. And of course you will...
by rai
Thu Apr 21, 2016 9:17 am
Forum: Personal Finance (Not Investing)
Topic: Cannot Pay Huge Tax Burden
Replies: 107
Views: 9064

Re: Cannot Pay Huge Tax Burden

I ran some numbers for you. I assumed that your SO will pay just the interest on this loan of $200k at 7%, or $14,000 per year. You are concerned that your SO will owe income tax on the value of the forgiven loan after 20 years - which will be valued at $200k at the end. So, your SO might owe $60k ...
by rai
Thu Apr 21, 2016 7:58 am
Forum: Personal Finance (Not Investing)
Topic: Mortgage advice for second home.
Replies: 18
Views: 1453

Re: Mortgage advice for second home.

I also would try to avoid LTC gains taxes in your situation. The best mortgage rate will be likely for your primary home. In MD you also pay state and county income tax on LTC gains. I live in a high-tax rate county (like you probably too). My LTC gains taxes in MD for an investment last year that ...

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