Search found 192 matches

by welderwannabe
Wed Aug 16, 2017 6:25 pm
Forum: Investing - Theory, News & General
Topic: Bond Fund in Taxable... ok for me?
Replies: 15
Views: 635

Re: Bond Fund in Taxable... ok for me?

I'm considering bond funds in taxable as well. I have had both state muni and federal muni up until now. The federal muni (i.e. VMLUX) has pretty poor performance relative to BND, so I'm trying to figure out why not use BND instead of VMLUX. My state muni performs pretty well compared to BND, but I...
by welderwannabe
Wed Aug 16, 2017 2:23 pm
Forum: Investing - Help with Personal Investments
Topic: Help with Taxable Account Allocation of Individual Funds vs Target Date Fund
Replies: 14
Views: 496

Re: Help with Taxable Account Allocation of Individual Funds vs Target Date Fund

In the 28% bracket, I would use these at whatever ratio you want. Vanguard Total Stock Market Index Fund Investor Shares Vanguard Total International Stock Index Fund Investor Shares Vanguard Intermediate Term Tax Exempt Bond Fund Unless there is a tax-exempt bond fund for your state. In that case ...
by welderwannabe
Wed Aug 16, 2017 12:45 pm
Forum: Investing - Help with Personal Investments
Topic: Help with Taxable Account Allocation of Individual Funds vs Target Date Fund
Replies: 14
Views: 496

Re: Help with Taxable Account Allocation of Individual Funds vs Target Date Fund

The bond portion of that target date fund will be taxed at your marginal rate, but the 2040 fund isn't even 15% bonds. At 28% tax rate holding municipal bonds wins out, but only very slightly. You are looking at a difference between an equivalent yield of 2.33% with municipal bonds versus 2.26% with...
by welderwannabe
Wed Aug 16, 2017 12:21 pm
Forum: Investing - Help with Personal Investments
Topic: Help with Taxable Account Allocation of Individual Funds vs Target Date Fund
Replies: 14
Views: 496

Re: Help with Taxable Account Allocation of Individual Funds vs Target Date Fund

What is your expected marginal tax rate for this year? If 25% or below the total bond fund is not that bad in taxable and therefore holding the targeted date fund is fine in my opinion. At 28% tax rate and up it can make sense to hold municipal bonds instead and that can complicate your portfolio. H...
by welderwannabe
Wed Aug 16, 2017 11:08 am
Forum: Investing - Theory, News & General
Topic: Larry Swedroe: World Isn't Flat-Invest Accordingly
Replies: 19
Views: 1538

Re: Larry Swedroe: World Isn't Flat-Invest Accordingly

It sounds like the world is flat only in the Large Cap space. Makes sense, the Large Cap stocks, both US and International tend to be multi-national companies. Wouldn't be a surprise that such stocks, particularly the mega-caps would behave in similar fashion. Wow, Nedsaid, your 8000th post. Did a ...
by welderwannabe
Tue Aug 15, 2017 11:15 am
Forum: Investing - Theory, News & General
Topic: Fidelity total int. and us bond observation
Replies: 6
Views: 568

Re: Fidelity total int. and us bond observation

Could it have something to do with size (AUM)? Fidelity's fund is less than 1/5 the size of vanguard's total bond fund. Maybe this limits the number of holdings they can have, so they have to resort to more sampling?
by welderwannabe
Tue Aug 15, 2017 8:51 am
Forum: Investing - Help with Personal Investments
Topic: Merits of CD option
Replies: 1
Views: 257

Re: Merits of CD option

That seems like a decent deal for a variable rate CD in this environment. 100 basis points over a 1 year tbill isn't bad for an 18 month term. Only risk is if interest rates drop for some reason you may have been better off with the 2 year@2.00%, but is is anyone's guess. I think rates are more like...
by welderwannabe
Mon Aug 14, 2017 6:25 pm
Forum: Investing - Help with Personal Investments
Topic: Active vs. Passive Bond Fund
Replies: 8
Views: 620

Re: Active vs. Passive Bond Fund

With bond yields as low as they are, you need all the help you can get. An extra 40 basis points of ER is a strong headwind against future performance. I would use the Index fund.
by welderwannabe
Mon Aug 14, 2017 2:51 pm
Forum: Investing - Help with Personal Investments
Topic: Portfolio Changes, Need Help!
Replies: 14
Views: 675

Re: Portfolio Changes, Need Help!

At the 25% tax rate you can hold Vanguard's Total Bond fund and get a ton of diversification. It is currently yielding around 2.26%. Intermediate Municipal Fund is yielding around 1.7%. After factoring in your tax rate it has an after tax equivalent yield of 2.26% as well. So either one will net you...
by welderwannabe
Mon Aug 14, 2017 1:38 pm
Forum: Investing - Help with Personal Investments
Topic: Contributions to a non-deductible tIRA vs. taxable
Replies: 18
Views: 888

Re: Contributions to a non-deductible tIRA vs. taxable

I had a non deductible IRA for a good 5 years before I was able to get the planets to line up to do the backdoor roth. Since I had only held bonds in it, it wasn't a huge amount of gains to pay taxes on. It is my opinion that a non deductible IRA is a fine place to put some money if you don't have e...
by welderwannabe
Mon Aug 14, 2017 10:44 am
Forum: Investing - Help with Personal Investments
Topic: Taxable account at Vanguard or Fidelity.
Replies: 9
Views: 833

Re: Taxable account at Vanguard or Fidelity.

I am a big fan of Fidelity but Vanguard has them beat when it comes to tax exempt funds. My tax-advantaged stuff is with Fidelity, but my taxable stuff is with Vanguard.
by welderwannabe
Mon Aug 14, 2017 8:48 am
Forum: Investing - Help with Personal Investments
Topic: Are these decent Fidelity options for simple portfolio?
Replies: 5
Views: 728

Re: Are these decent Fidelity options for simple portfolio?

Those 3 bolded options are fine. I use the premium (non institutional) versions of the first two myself. I believe those 3 funds are just the institutional versions of what is recommended in the wiki. Note that FSPNX is the institutional version of FSIVX, a developed-market only, large-cap only fun...
by welderwannabe
Sun Aug 13, 2017 7:51 pm
Forum: Investing - Help with Personal Investments
Topic: Are these decent Fidelity options for simple portfolio?
Replies: 5
Views: 728

Re: Are these decent Fidelity options for simple portfolio?

Those 3 bolded options are fine. I use the premium (non institutional) versions of the first two myself. I believe those 3 funds are just the institutional versions of what is recommended in the wiki. The institutional versions are usually better with lower fees, so that is good. That is not to say ...
by welderwannabe
Sun Aug 13, 2017 8:25 am
Forum: Investing - Help with Personal Investments
Topic: CD vs car-loan payment
Replies: 12
Views: 1205

Re: CD vs car-loan payment

I would either dump the money into the market now or pay down the loan. One or the other. Keeping the money on the sidelines earning 40 basis points less than the Interest you are paying on your car loan, solely so you can have the money available as dry power, doesn't make sense to me.
by welderwannabe
Sat Aug 12, 2017 7:01 pm
Forum: Investing - Help with Personal Investments
Topic: Core position in Fidelity
Replies: 22
Views: 1833

Re: Core position in Fidelity

edge wrote:
Sat Aug 12, 2017 5:04 pm
Worrying about this is a waste of tine
+1
by welderwannabe
Sat Aug 12, 2017 3:49 pm
Forum: Investing - Theory, News & General
Topic: Solo 401k
Replies: 7
Views: 691

Re: Solo 401k

If you are unincorporated the profit matching works out to be 20% instead of 25%. Other than that it works out pretty much the same way.
by welderwannabe
Sat Aug 12, 2017 1:36 pm
Forum: Investing - Theory, News & General
Topic: Solo 401k
Replies: 7
Views: 691

Re: Solo 401k

Consider this post a vote for Fidelity's Solo401k. Vanguard's stinks and is way too limiting. No IRA rollovers into their Solo401k. No admiral shares. No ETFs. No brokered CDs. No individual bonds. Please note that some of Vanguard's funds are only offered as ETFs or Admiral shares so this means the...
by welderwannabe
Sat Aug 12, 2017 1:27 pm
Forum: Investing - Help with Personal Investments
Topic: Core position in Fidelity
Replies: 22
Views: 1833

Re: Core position in Fidelity

I made the decision to switch my online brokerage from Scottrade to Fidelity. This is a stock trading account only; not an IRA or investment acount or anything. While signing up for Fidelity, I read something about their core position, which says: Your core position is where your money is held unti...
by welderwannabe
Sat Aug 12, 2017 8:37 am
Forum: Forum Issues and Administration
Topic: SITE OFFLINE SATURDAY 10 AM Eastern (14:00 UTC) - software upgrade
Replies: 12
Views: 1034

Re: SITE OFFLINE SATURDAY 10 AM Eastern (14:00 UTC) - software upgrade

What? What am I supposed to do with my Saturday with the forum down? :beer
by welderwannabe
Sat Aug 12, 2017 8:31 am
Forum: Investing - Help with Personal Investments
Topic: AA, IPS. Tinkering trap?
Replies: 11
Views: 841

Re: AA, IPS. Tinkering trap?

I have changed my IPS 4-5 times over the last year. My IPS is only a year old. What happened in my case is that as I went to implement it I figured out that the 'ideal' percentages I had determined during my excessive research was complicated that necessary. Instead of 60% of this, 40% of that I cha...
by welderwannabe
Sat Aug 12, 2017 8:25 am
Forum: Investing - Help with Personal Investments
Topic: taxable accounts
Replies: 8
Views: 533

Re: taxable accounts

Hard to tell from you post whether you have 2 mortgages + a third mortgage on a townhouse, or if the townhouse was included in the 2 mortgages you mentioned. Paying off the mortgage is always a good risk free method of getting some return. However, if you heart is set on a taxable account then Vangu...
by welderwannabe
Sat Aug 12, 2017 7:24 am
Forum: Investing - Help with Personal Investments
Topic: Gameplan to 100k
Replies: 12
Views: 1489

Re: Gameplan to 100k

I congratulate you for being this young and seeming to have it together. Maxxing out your Roth at you age and especially salary is commendable!

I would put the money in a high yield savings account, CD ladder, or if you want to take a little bit of risk maybe Vanguard Ultra Short Bond Fund VUBFX.
by welderwannabe
Fri Aug 11, 2017 4:30 pm
Forum: Personal Consumer Issues
Topic: Boston to Maine road trip
Replies: 61
Views: 3450

Re: Boston to Maine road trip

My wife and I are thinking of flying into Boston and driving up the coast to Maine,not sure how far up we will go.I would appreciate suggestions and also is there an inland route returning to Boston to see something different.We will be going around beginning of October for about 10 days.Catching t...
by welderwannabe
Fri Aug 11, 2017 4:11 pm
Forum: Investing - Help with Personal Investments
Topic: Anyone know about XSAFA?? Forced 401k switch
Replies: 11
Views: 765

Re: Anyone know about XSAFA?? Forced 401k switch

Expenses: 0.18% Many fixed return investments include restrictions on withdrawals depending upon a variety of factors. For any applicable restrictions see the information provided on this fund by logging into Personal Savings Center from http://www.standard.com/retirement. Thanks, I didn't know it ...
by welderwannabe
Fri Aug 11, 2017 3:03 pm
Forum: Investing - Help with Personal Investments
Topic: Where To Put My Emergency Fund?
Replies: 58
Views: 3914

Re: Where To Put My Emergency Fund?

Credit unions don't use FDIC. They use NCUA which is very similar.

The banks have been trying to keep NCUA limits below FDIC limits for years because they don't like the competition, but NCUA was successfully increased to $250K as well.
by welderwannabe
Fri Aug 11, 2017 2:55 pm
Forum: Investing - Theory, News & General
Topic: What Percentage CASH are you?
Replies: 90
Views: 5932

Re: What Percentage CASH are you?

Are Vanguard's brokered CDs worth checking out? And, if they're not competitive, then why do they even bother selling them? You should open a new thread to ask this, it will get lost in this one. However, to answer your question a 5 year brokered CD is yielding around 2.35% right now. This is compa...
by welderwannabe
Fri Aug 11, 2017 1:57 pm
Forum: Investing - Help with Personal Investments
Topic: Stable Value Funds vs Bond Funds
Replies: 33
Views: 1975

Re: Stable Value Funds vs Bond Funds

The stable value fund I have access to stinks. However, even if it had a great return I would still want to limit my exposure to no more than 50% of my fixed income allocation. Just my opinion.
by welderwannabe
Thu Aug 10, 2017 6:20 pm
Forum: Personal Consumer Issues
Topic: Boston to Maine road trip
Replies: 61
Views: 3450

Re: Boston to Maine road trip

Danvers? Why in the world would you want to stay in Danvers? If you want to stay near the city you want something near the T. The Boston Logan Hilton can be affordable. There is also a Marriott Towneplace suites near the airport with a shuttle to the Blue line station. Danvers is too far from the ci...
by welderwannabe
Thu Aug 10, 2017 12:29 pm
Forum: Investing - Theory, News & General
Topic: What Percentage CASH are you?
Replies: 90
Views: 5932

Re: What Percentage CASH are you?

hirlaw wrote:OP: Are you including CD's and stable value funds in your definition of "CASH"? My guess is that a lot of people on here are using CD's in lieu of some bonds in this environment.
That is a good point. When I said 0% cash in tax deferred I ignored my CDs. I consider those FDIC insured bonds.
by welderwannabe
Thu Aug 10, 2017 12:18 pm
Forum: Investing - Help with Personal Investments
Topic: Where To Put My Emergency Fund?
Replies: 58
Views: 3914

Re: Where To Put My Emergency Fund?

I currently keep my emergency fund 6 months/$10k in the Vangaurd Federal Money Market Fund (VMFXX) via a taxable account. I am thinking of moving to another Vanguard fund in my taxable account, but am not sure. Any suggestions or should I just keep it there? You would do better in a Ally savings ac...
by welderwannabe
Thu Aug 10, 2017 12:13 pm
Forum: Investing - Help with Personal Investments
Topic: Near Retirement Portfolio Review
Replies: 9
Views: 1485

Re: Near Retirement Portfolio Review

Some quick back of the napkin math shows your bond allocation is roughly 50% corporates, with about 15% of your total bond allocation being hi-yield debt. If I was in your shoes with starting to take money out in 4 years I would want a little more safety in my bond portfolio than you have at the mom...
by welderwannabe
Thu Aug 10, 2017 11:50 am
Forum: Investing - Theory, News & General
Topic: What Percentage CASH are you?
Replies: 90
Views: 5932

Re: What Percentage CASH are you?

In my tax deferred accounts I am 0% cash (aside from whatever cash drag is inherent in the mutual funds I am in).

In taxable I am 5% cash. This is mainly for liquidity reasons.
by welderwannabe
Tue Aug 08, 2017 5:18 pm
Forum: Investing - Help with Personal Investments
Topic: [Stashing a windfall in the safest possible place while deciding what to do next]
Replies: 45
Views: 3121

Re: Stashing a windfall in the safest possible place while deciding what to do next

One of the reasons I like T-bills in this case is it locks the money up for a bit of time to help them think. Of course TBills are liquid, but if you buy them through treasury direct you would have to go through the trouble of transferring the securities to a broker and selling them. Having them in ...
by welderwannabe
Tue Aug 08, 2017 3:55 pm
Forum: Investing - Help with Personal Investments
Topic: Help me understand GNMA fund vs CDs
Replies: 10
Views: 652

Re: Help me understand GNMA fund vs CDs

Between those two choices, for the difference of 11 basis points, I would go with the CD.

I am jaded from 2008, but if I never invested another dollar in mortgages it would be too soon.
by welderwannabe
Tue Aug 08, 2017 3:51 pm
Forum: Investing - Help with Personal Investments
Topic: [Stashing a windfall in the safest possible place while deciding what to do next]
Replies: 45
Views: 3121

Re: Stashing a windfall in the safest possible place while deciding what to do next

Dealing with FDIC insurance on that is a PITA. You could use Fidelty cash management but I think they only split it up amongst 5 banks, giving you 1.25M.

What about purchasing a 26 week TBill?
by welderwannabe
Tue Aug 08, 2017 3:44 pm
Forum: Personal Finance (Not Investing)
Topic: Twins on the way = Life insurance questions
Replies: 22
Views: 908

Re: Twins on the way = Life insurance questions

In your 40's is usually when problems start to crop up and you might become uninsurable. +1 This very thing happened to me when I turned 41 where while I am not uninsurable, the cost would be dramatically more. I am glad I got the 30 year when I did, so I have insurance until I am in my early sixti...
by welderwannabe
Tue Aug 08, 2017 3:19 pm
Forum: Investing - Theory, News & General
Topic: Vanguard Government Bond Index Funds changing names and indices (dropping agency bonds)
Replies: 53
Views: 4519

Re: Vanguard Government Bond Index Funds changing names and indices (dropping agency bonds)

The active Treasury funds are available as Investor class. Short 1-5 yr, intermediate 5-10 yr but they have been running a little lower duration than their benchmark in the past. (Glad to see that I am not the only one that tends to spell it "Vangaurd". But I burned my right hand learning to braze ...
by welderwannabe
Tue Aug 08, 2017 2:55 pm
Forum: Investing - Theory, News & General
Topic: Vanguard Government Bond Index Funds changing names and indices (dropping agency bonds)
Replies: 53
Views: 4519

Re: Vanguard Government Bond Index Funds changing names and indices (dropping agency bonds)

Maybe they will add an investor class to VSIGX as part of this change. Be nice so people could hold it in their Vangaurd Solo401k.

Edit: Just read Vanguard's press release. No mention of investor classes. Seems strange they don't offer one.
by welderwannabe
Mon Aug 07, 2017 11:51 pm
Forum: Investing - Help with Personal Investments
Topic: Help with New Portfolio
Replies: 7
Views: 499

Re: Help with New Portfolio

Which bonds would you recommend for the taxable? We are 25% federal, 8% state, 3% city At the 25% bracket you could go either way. Based on current SEC yields total bond will have an after Federal tax yield of 1.70%. The intermediate term tax-exempt VWITX has a yield of 1.74%. It holds municipal bo...
by welderwannabe
Mon Aug 07, 2017 6:27 pm
Forum: Investing - Help with Personal Investments
Topic: Help with New Portfolio
Replies: 7
Views: 499

Re: Help with New Portfolio

The REITs may be worse in your taxable account that total bond.

Whether total bond will be bad or not depends on your marginal tax rate. I use intermediate term munis in my taxable account, but whether that makes sense for you or not depends a lot on your taxes.
by welderwannabe
Mon Aug 07, 2017 5:42 pm
Forum: Investing - Theory, News & General
Topic: Should TBM Be Your Only Bond Fund?
Replies: 33
Views: 4886

Re: Should TBM Be Your Only Bond Fund?

If you allow ETFs I would use iShares Intermediate Government/Credit Bond ETF GVI which is a 1-10 Government/Credit index "fund" and addresses the concerns of Jack Bogle and Larry Swedroe as nesaid mentioned upthread. But like jhfenton, I also prefer to split them out but in a different manner beca...
by welderwannabe
Mon Aug 07, 2017 5:13 pm
Forum: Investing - Help with Personal Investments
Topic: How long does TreasuryDirect take to convert paper I bonds?
Replies: 63
Views: 13890

Re: How long does TreasuryDirect take to convert paper I bonds?

Thanks for that response. But how did you check with the TD for status? Was there instructions in the email you received? None. You just log into TD, access the linked account, and it will show you what bonds are in there. It says '0' until they have processed them. The email I received is basicall...
by welderwannabe
Sun Aug 06, 2017 4:25 pm
Forum: Investing - Help with Personal Investments
Topic: How long does TreasuryDirect take to convert paper I bonds?
Replies: 63
Views: 13890

Re: How long does TreasuryDirect take to convert paper I bonds?

I just sent some in. It took about 4 weeks.

When they received the bonds I got an email. I checked TD every couple of days. About 4 weeks later the bonds appeared, but I never received a message saying they had been converted. Just keep checking and you will see it.
by welderwannabe
Sun Aug 06, 2017 8:47 am
Forum: Investing - Theory, News & General
Topic: Vanguard Treasury Money Market Fund (VUSXX)
Replies: 5
Views: 886

Re: Vanguard Treasury Money Market Fund (VUSXX)

The answer to the OP's question derives from the history of the fund. For years before the financial crash, Vanguard had Investor Shares (Vanguard fund 0050) and Admiral Shares (Vanguard fund 0011) of Treasury Money Market. With the coming of near–zero interest rates, so that the investment yield o...
by welderwannabe
Sat Aug 05, 2017 6:21 pm
Forum: Investing - Help with Personal Investments
Topic: Mutual fund or EFT?
Replies: 4
Views: 365

Re: Mutual fund or EFT?

I only buy an ETF if I cannot get what I want from a low cost mutual fund. For example, Fidelity doesn't seem to have a mutual fund with a low ER that invests in only corporates such as Vanguard Intermediate-Term Corporate Bond Index Fund VICSX. Therefore I used the commission free ETFs that Fidelit...
by welderwannabe
Sat Aug 05, 2017 6:04 pm
Forum: Investing - Theory, News & General
Topic: Vanguard Treasury Money Market Fund (VUSXX)
Replies: 5
Views: 886

Vanguard Treasury Money Market Fund (VUSXX)

Does anyone have any insight as to why this money market has a $50K minumim? I know some of the money markets were closed to new investors, or had minimums boosted when yields were near zero and some of the funds were getting more expensive to run than they could produce in dividends. Any idea/thoug...
by welderwannabe
Sat Aug 05, 2017 3:13 pm
Forum: Investing - Theory, News & General
Topic: Study: Who Sold Stock During the 2008-9 Crash?
Replies: 85
Views: 7062

Re: Study: Who Sold Stock During the 2008-9 Crash?

I did not sell. I remember the time vividly. There was a line out the door of our HR admins office of people asking to lower their 401k contributions. I was in that line, but I doubled my percentage. Went from 6% to 12%. The HR admin thought I was crazy. I also scooped up Ford (F) at $1.96. I didn't...
by welderwannabe
Fri Aug 04, 2017 6:35 pm
Forum: Investing - Help with Personal Investments
Topic: Switching Retirement Plan Investments
Replies: 4
Views: 486

Re: Switching Retirement Plan Investments

Makes sense to me. That is a big decrease in ER. I am not a fan of the real-estate, but that is my personal opinion.
by welderwannabe
Fri Aug 04, 2017 12:24 pm
Forum: Investing - Help with Personal Investments
Topic: Have municipal bonds without owning regular bonds?
Replies: 24
Views: 709

Re: Have municipal bonds without owning regular bonds?

The main reason of having bonds in my taxable and not in my retirement account would be for peace of mind in the event of a market crash since I have a high probability of using the money in my taxable account over the next 30 years than assets accumulated in my retirement accounts. I do want to em...
by welderwannabe
Fri Aug 04, 2017 12:17 pm
Forum: Investing - Help with Personal Investments
Topic: Have municipal bonds without owning regular bonds?
Replies: 24
Views: 709

Re: Have municipal bonds without owning regular bonds?

If I don't have bonds in my retirement account would it make sense to have muni in my taxable account since this would be my liquid money. My reasoning for having muni in taxable would be that in a potential market crash this would give me a buffer for my liquid assets. I do have an emergency fund ...