Search found 75 matches

by strongboy2005
Fri Sep 04, 2020 2:18 am
Forum: Personal Investments
Topic: Pay down mortgage or invest
Replies: 31
Views: 2608

Re: Pay down mortgage or invest

One approach would be to pay off enough to only owe about 60% of the home value. Then, refinance to a 15-year mortgage. You should be able to get at or below 2.5%, with minimal out of pocket costs. Take advantage of the low rates available now. Interesting. Is 60% loan to value (so, 40% equity) som...
by strongboy2005
Fri Aug 07, 2020 9:39 am
Forum: Investing - Theory, News & General
Topic: Tax loss harvesting treasury bonds
Replies: 9
Views: 614

Re: Tax loss harvesting treasury bonds

Is another 30 year treasury bond, bought at a different interest rate, substantially identical?
by strongboy2005
Fri Aug 07, 2020 12:00 am
Forum: Investing - Theory, News & General
Topic: Tax loss harvesting treasury bonds
Replies: 9
Views: 614

Tax loss harvesting treasury bonds

I plan on eventually going to long term treasuries as my bond holding, but I wanted to buy individual 30 year treasuries. Can you tax loss harvest an individual treasury bond? For instance, if I sell a 30 year treasury bond that has lost value and buy another 30 year treasury bond?
by strongboy2005
Thu Aug 06, 2020 9:11 am
Forum: Investing - Theory, News & General
Topic: Bond funds in taxable: How much can tax loss harvesting mitigate the risk of increases in interest rates?
Replies: 30
Views: 2120

Re: Bond funds in taxable: How much can tax loss harvesting mitigate the risk of increases in interest rates?

Ok quick related question about this. I plan on eventually going to long term treasuries as my bond holding, but I wanted to buy individual 30 year treasuries. Can you tax loss harvest an individual treasury bond? For instance, if I sell a 30 year treasury bond that has lost value and buy another 30...
by strongboy2005
Wed Jul 08, 2020 10:22 am
Forum: Personal Investments
Topic: Another one on the "bond Market" is dead
Replies: 11
Views: 877

Re: Another one on the "bond Market" is dead

The only relevant risk is running out of money. How you design your portfolio to mitigate that risk is up to you. The caveat here is that if you choose to include bonds, you must account for their low expected return with a larger portfolio (i.e., lower withdrawal rate).
by strongboy2005
Sun Jun 14, 2020 8:29 am
Forum: Personal Finance (Not Investing)
Topic: form 8606 blues
Replies: 64
Views: 3710

Re: form 8606 blues

I’ll pile on and give this headscratcher which I just learned about yesterday. Taxpayer made an IRA contribution with subsequent roth conversion. Told the CPA he did a "backdoor Roth" and provided 1099s. CPA said you are over the limit for making a Roth or a Traditional IRA and that they ...
by strongboy2005
Sun Jun 14, 2020 7:06 am
Forum: Investing - Theory, News & General
Topic: The “Abandon Bonds” strategy
Replies: 259
Views: 28182

Re: The “Abandon Bonds” strategy

Futures market is pricing in negative rates, and this guy thinks cash will not lose nominal value? I'm not sure you know what nominal means. I guarantee cash will not lose nominal value, as that is the very definition of cash. Technically speaking, a negative interest rate would cause cash to lose ...
by strongboy2005
Tue Jun 02, 2020 11:42 am
Forum: Investing - Theory, News & General
Topic: 100% Equity Investors: What are you holding?
Replies: 30
Views: 2900

Re: 100% Equity Investors: What are you holding?

401k/Roth IRA/HSA 100% VT
Taxable VTI and VXUS at world market cap
by strongboy2005
Mon May 18, 2020 9:55 am
Forum: Personal Consumer Issues
Topic: Will cash be obsolete in a new digital world?
Replies: 20
Views: 1084

Re: Will cash be obsolete in a new digital world?

I think it’s in governments’ best interests to do this so they can eventually effectively implement negative interest rates.
by strongboy2005
Tue Mar 31, 2020 10:25 am
Forum: Personal Investments
Topic: Tide went out and I was naked
Replies: 28
Views: 5517

Re: Tide went out and I was naked

All in on a Vanguard target date fund would be my advice. No need for any additional complexity or a financial advisor.
by strongboy2005
Tue Mar 03, 2020 10:47 am
Forum: Investing - Theory, News & General
Topic: What if Fed cut doesn't work?
Replies: 137
Views: 6558

Re: What if Fed cut doesn't work?

corn18 wrote: Tue Mar 03, 2020 10:24 am I'll take it though because we are waiting to lock in a mortgage on our new house. I was just going to pay cash but jeesh, if they hit 2.75% for 30 year fixed, I may have to reconsider.
I didn’t think the short term fed funds rate and 30 year mortgage rates were linked in any way.
by strongboy2005
Fri Feb 28, 2020 10:12 pm
Forum: Personal Finance (Not Investing)
Topic: Can I tax loss harvest in my HSA?
Replies: 5
Views: 613

Re: Can I tax loss harvest in my HSA?

Is it still a $3,000 annual limit, the same as the federal amount? Can my losses be carried forward on my state taxes if more than $3,000, similar to capital losses on federal tax? Thanks for your help.
by strongboy2005
Fri Feb 28, 2020 3:48 pm
Forum: Personal Finance (Not Investing)
Topic: Can I tax loss harvest in my HSA?
Replies: 5
Views: 613

Can I tax loss harvest in my HSA?

I live in California, which treats my HSA like it is a taxable account. Can I tax loss harvest for my state taxes within the HSA? Does this get deducted on my state taxes against my ordinary income? I am in the 9.3% California tax bracket. Thank you
by strongboy2005
Sat Nov 09, 2019 2:43 pm
Forum: Personal Investments
Topic: Bonds in your taxable - any examples?
Replies: 10
Views: 1121

Re: Bonds in your taxable - any examples?

When bond yields and total stock market dividend payments are essentially the same number, it probably makes more sense to keep bonds all in taxable.
by strongboy2005
Fri Nov 08, 2019 12:22 am
Forum: Investing - Theory, News & General
Topic: [Deleted]
Replies: 117
Views: 16706

Re: Long Term Bonds getting killed today

Volatility is good.
by strongboy2005
Sun Sep 29, 2019 4:12 pm
Forum: Personal Finance (Not Investing)
Topic: Selling my house to my sister
Replies: 12
Views: 1425

Selling my house to my sister

Hello everyone. I am considering selling my home to my sister and not using a realtor. The idea would be passing the entirety of the savings on to her by a 6% reduction in the home purchase price. Here are some facts: **Home value is between $318-$322k. The house is a popular track home in the area ...
by strongboy2005
Wed Aug 28, 2019 5:37 pm
Forum: Investing - Theory, News & General
Topic: Tax loss harvesting without having different stock funds
Replies: 3
Views: 261

Tax loss harvesting without having different stock funds

So let’s say you are holding VT (Vanguard Total World stock ETF) in a 401k and a taxable account. The stock drops in value and you wish to tax loss harvest. So, to avoid a wash sale, can’t you just sell and exchange everything to VTI+VXUS simultaneously? Wouldn’t this keep the funds the same across ...
by strongboy2005
Sun Aug 18, 2019 12:54 am
Forum: Personal Finance (Not Investing)
Topic: Opportunity cost of saving for a home down payment
Replies: 15
Views: 1406

Re: Opportunity cost of saving for a home down payment

So let’s say this couple decides to follow the above advice and rent for 5 years. In this time, they have put $60,000 into their Roth IRA. Ok to raid this for the $50,000 down payment? If not, isn’t this the same thing as not putting the money there to begin with and saving the “down payment” money...
by strongboy2005
Sat Aug 17, 2019 7:04 pm
Forum: Personal Finance (Not Investing)
Topic: Opportunity cost of saving for a home down payment
Replies: 15
Views: 1406

Re: Opportunity cost of saving for a home down payment

So let’s say this couple decides to follow the above advice and rent for 5 years. In this time, they have put $60,000 into their Roth IRA. Ok to raid this for the $50,000 down payment? If not, isn’t this the same thing as not putting the money there to begin with and saving the “down payment” money ...
by strongboy2005
Sat Aug 17, 2019 6:46 pm
Forum: Personal Finance (Not Investing)
Topic: Opportunity cost of saving for a home down payment
Replies: 15
Views: 1406

Opportunity cost of saving for a home down payment

I have been thinking more lately about the significant opportunity cost to buying a home over renting and it seems one aspect in particular doesn’t often come up in the discussion of buy vs rent. If one makes enough money to max out their tax-advantaged accounts AND save a down payment in a savings ...
by strongboy2005
Fri Jul 26, 2019 12:17 am
Forum: Personal Investments
Topic: Setting up for tax loss harvesting
Replies: 9
Views: 1169

Re: Setting up for tax loss harvesting

Ok so if you theoretically had $1m in taxable and the stock market dropped 9% ($90,000), you could sell and buy a different fund right away, locking in the losses, and then claim a $3,000 loss on your next 30 tax returns?
by strongboy2005
Thu Jul 25, 2019 3:24 pm
Forum: Personal Investments
Topic: Setting up for tax loss harvesting
Replies: 9
Views: 1169

Re: Setting up for tax loss harvesting

Ok so I’m thinking I could keep VT as my only stock holding in my 401k/Roth IRA and then use VTI+VXUS in taxable. Then, if a tax loss harvesting opportunity comes along, I won’t run into an issue with VT reinvesting dividends in my 401k/Roth IRA. At what level of a loss do you decide it is worth it ...
by strongboy2005
Thu Jul 25, 2019 10:42 am
Forum: Personal Investments
Topic: Setting up for tax loss harvesting
Replies: 9
Views: 1169

Setting up for tax loss harvesting

Hello everyone. I’m preparing to start making my first taxable account investments and I wanted to ask about some of the mechanics of it. First of all, I have a 401k and Roth IRA invested in a 50:50 mix of VT (Vanguard Total World Stock ETF) and SWAGX (Schwab Total Bond Market Index Fund). Retiremen...
by strongboy2005
Tue Jul 16, 2019 3:27 pm
Forum: Investing - Theory, News & General
Topic: Will you buy Total Bond with a negative yield?
Replies: 112
Views: 13978

Re: Will you buy Total Bond with a negative yield?

ohai wrote: Tue Jul 16, 2019 2:39 pm Rates are all relative. If your Swiss bank savings account is yielding -0.5%, then maybe you'd happily accept a bond yielding -0.1%.
Unless you pull out cash or move everything to stocks.
by strongboy2005
Tue Jul 16, 2019 1:02 am
Forum: Investing - Theory, News & General
Topic: Will you buy Total Bond with a negative yield?
Replies: 112
Views: 13978

Re: Will you buy Total Bond with a negative yield?

So when should I sell all my bonds and go to 100% stocks? At <1% yield?
by strongboy2005
Sun Jul 14, 2019 7:10 pm
Forum: Investing - Theory, News & General
Topic: Will you buy Total Bond with a negative yield?
Replies: 112
Views: 13978

Will you buy Total Bond with a negative yield?

As the title suggests, would you consider including a negative yielding total bond fund in your asset allocation? If not, at what yield would you consider pulling the plug? Less than 1%? 0%. I ask because this is becoming reality in other parts of the world. My current AA is 50:50 per my IPS. It see...
by strongboy2005
Fri Jul 05, 2019 1:56 pm
Forum: Personal Investments
Topic: Why did SPTL drop today?
Replies: 6
Views: 917

Why did SPTL drop today?

I can’t figure this out. Is it a dividend distribution?
by strongboy2005
Mon Jun 10, 2019 11:57 pm
Forum: Investing - Theory, News & General
Topic: Tax efficiency of mutual fund vs ETF for bonds
Replies: 11
Views: 1079

Re: Tax efficiency of mutual fund vs ETF for bonds

Bond ETFs do often generate capital gains. If rates fall, all bonds increase in value, so any bonds the ETF has to sell are likely to have capital gains. However, for a taxable bond ETF, you would prefer to receive the capital gains, because they are taxed at a lower rate. If a fund buys a bond wor...
by strongboy2005
Mon Jun 10, 2019 10:29 pm
Forum: Investing - Theory, News & General
Topic: Tax efficiency of mutual fund vs ETF for bonds
Replies: 11
Views: 1079

Re: Tax efficiency of mutual fund vs ETF for bonds

Bond ETFs do often generate capital gains. If rates fall, all bonds increase in value, so any bonds the ETF has to sell are likely to have capital gains. However, for a taxable bond ETF, you would prefer to receive the capital gains, because they are taxed at a lower rate. If a fund buys a bond wor...
by strongboy2005
Mon Jun 10, 2019 4:09 pm
Forum: Investing - Theory, News & General
Topic: Tax efficiency of mutual fund vs ETF for bonds
Replies: 11
Views: 1079

Tax efficiency of mutual fund vs ETF for bonds

Hello, I know there is improved tax efficiency using ETFs in taxable accounts versus the equivalent mutual fund (with the exception of Vanguard funds); however, does the same apply for bond funds? For instance, is there improved tax efficiency to hold SCHZ (Schwab Total Bond ETF) versus SWAGX (Schwa...
by strongboy2005
Fri Jun 07, 2019 2:09 am
Forum: Personal Investments
Topic: How would you invest a lump sum of 3 million dollars in today's market?
Replies: 50
Views: 6503

Re: How would you invest a lump sum of 3 million dollars in today's market?

Imagine for a moment a typical day in the stock market. There is some random bad news and the market is down 2%. Your portfolio just dropped $60,000. How does this make you feel? This is what it would be like to have it all invested 100% in stocks. Your need to take risk has decreased substantially,...
by strongboy2005
Tue May 28, 2019 10:03 am
Forum: Personal Investments
Topic: Cut the cord
Replies: 13
Views: 1528

Re: Cut the cord

Looks good, but I’d probably go even more simple: 80% Vanguard Total World (VT), 20% Vanguard Total Bond (BND). Rebalance annually. Simple and easy!
by strongboy2005
Sat Apr 20, 2019 10:01 am
Forum: Personal Investments
Topic: Help calculating after tax yield
Replies: 8
Views: 476

Re: Help calculating after tax yield

Thank you for all your helpful replies! I love this forum. It looks like I can invest directly in 3 month T-bills that are yielding 2.45% right now and are state tax exempt, so my after tax yield would be 2.45*(1-0.24)=1.862%. This looks like the best after tax yield of the investments I’ve looked a...
by strongboy2005
Sat Apr 20, 2019 12:29 am
Forum: Personal Investments
Topic: Help calculating after tax yield
Replies: 8
Views: 476

Help calculating after tax yield

Hello everyone, Having some trouble wrapping my head around after tax yield. Currently in the 24% federal and 9.3% state (California) tax brackets. I itemize deductions. The SALT deduction is capped at $10,000 and I already hit this limit. Married filing jointly. I am looking at the following fixed ...
by strongboy2005
Fri Apr 12, 2019 9:30 am
Forum: Personal Finance (Not Investing)
Topic: Mortgage review / advice.
Replies: 8
Views: 1309

Re: Mortgage review / advice.

Make sure your extra payments are designated for principal and not a prepayment of your bill.
by strongboy2005
Mon Mar 25, 2019 4:20 pm
Forum: Personal Finance (Not Investing)
Topic: Should I ditch bonds? (Because I have a mortgage)
Replies: 45
Views: 4250

Re: Should I ditch bonds? (Because I have a mortgage)

I don’t consider my mortgage in my asset allocation. Instead, I include my home equity as a bond in my asset allocation. That’s quite a stretch. In my view. I look at my home equity like a bond that pays its dividend as imputed rent. I see my money owed on the house as an expense like all my other ...
by strongboy2005
Mon Mar 25, 2019 2:29 pm
Forum: Personal Finance (Not Investing)
Topic: Should I ditch bonds? (Because I have a mortgage)
Replies: 45
Views: 4250

Re: Should I ditch bonds? (Because I have a mortgage)

I don’t consider my mortgage in my asset allocation. Instead, I include my home equity as a bond in my asset allocation.
by strongboy2005
Sun Feb 10, 2019 5:04 pm
Forum: Investing - Theory, News & General
Topic: Why choose intermediate term treasury at this time?
Replies: 57
Views: 6750

Why choose intermediate term treasury at this time?

When comparing an intermediate term treasury fund, such as SCHR, with a short term treasury fund, such as SCHO, is there any reason to prefer the intermediate term fund if the yields are the same for both funds?
by strongboy2005
Sat Feb 09, 2019 4:58 am
Forum: Personal Investments
Topic: Duplicating VFWAX with Schwab funds (AA question)
Replies: 37
Views: 2334

Re: Duplicating VFWAX with Schwab funds (AA question)

Why not just pay $5 and get VXUS in your Schwab account?
by strongboy2005
Wed Feb 06, 2019 10:19 am
Forum: Personal Finance (Not Investing)
Topic: Equity indexed annuity - surrender or ride it out?
Replies: 17
Views: 723

Re: Equity indexed annuity - surrender or ride it out?

Yes the 403b balance can and should be rolled into an IRA. Did the insurance company actually calculate the surrender fee percentages you posted? Was the annuity purchased over a number of years, or was it bought at single point in time? The insurance company just sent statements with the surrender...
by strongboy2005
Wed Feb 06, 2019 12:27 am
Forum: Personal Finance (Not Investing)
Topic: Equity indexed annuity - surrender or ride it out?
Replies: 17
Views: 723

Re: Equity indexed annuity - surrender or ride it out?

If we assume that the average annual fee will be 2%, we can compare the cost of paying the current surrender fee of 15% versus holding the annuity for 10 years, paying the annual fee and avoiding the surrender fee. Assumptions: 100,000 principal 2% assumed annual fee Term of 10 years 4% assumed rat...
by strongboy2005
Tue Feb 05, 2019 11:16 pm
Forum: Personal Finance (Not Investing)
Topic: Equity indexed annuity - surrender or ride it out?
Replies: 17
Views: 723

Re: Equity indexed annuity - surrender or ride it out?

What was their purpose of buying the policy? Avoid risk? When they retired from teaching, a “financial adviser” was brought in by the school district. Turns out it was actually an insurance salesman and they were selling equity-indexed annuities. They were told they could have a guaranteed return w...
by strongboy2005
Tue Feb 05, 2019 11:07 pm
Forum: Personal Finance (Not Investing)
Topic: Equity indexed annuity - surrender or ride it out?
Replies: 17
Views: 723

Re: Equity indexed annuity - surrender or ride it out?

Here is from the “specifications page”: Issue age: 59 Issue date: 1/21/2014 Maturity date: 1/21/2070 Inital premium: $102,081 Premium bonus percentage: 10.00% (Applies to all premium, net of partial surrenders, received in the first seven Contract Years) Premium bonus: $10,208.14 Minimum additional ...
by strongboy2005
Tue Feb 05, 2019 9:28 pm
Forum: Personal Finance (Not Investing)
Topic: Equity indexed annuity - surrender or ride it out?
Replies: 17
Views: 723

Re: Equity indexed annuity - surrender or ride it out?

What is your parents’ primary objective? If they don’t want the risk of negative returns, just leave it as is. 9.3% is far better than anything they’d get with minimal risk. Paying a huge surrender charge seems like a terrible idea. They can withdraw 10% per year for free with no surrender charge t...
by strongboy2005
Tue Feb 05, 2019 9:02 pm
Forum: Personal Finance (Not Investing)
Topic: Equity indexed annuity - surrender or ride it out?
Replies: 17
Views: 723

Re: Equity indexed annuity - surrender or ride it out?

Here is the remaining surrender charge percentage:
2019 - 15%
2020 - 15%
2021 - 14%
2022 - 12%
2023 - 10%
2024 - 8%
2025 - 6%
2026 - 4%
2027 - 2%
2028 - 0%
by strongboy2005
Tue Feb 05, 2019 8:48 pm
Forum: Personal Finance (Not Investing)
Topic: Equity indexed annuity - surrender or ride it out?
Replies: 17
Views: 723

Equity indexed annuity - surrender or ride it out?

Hello, My parents have asked me to post a question on the forums in regards to what they should do with their equity-indexed annuity. They have two identical policies (one in each of their names) with similar amounts in each. The product is called “Flexible Premium Deferred Annuity”. It is 100% inde...
by strongboy2005
Tue Jan 29, 2019 12:15 am
Forum: Investing - Theory, News & General
Topic: An emergency fund cautionary tale
Replies: 89
Views: 12330

Re: An emergency fund cautionary tale

Could you keep a 12 month emergency fund of stocks (e.g., VTI or VTSAX) as your 6 month emergency fund? Then, in a situation where there is a simultaneous emergency (such as job loss) and a 50% decline in the stock market, you still have 6 months of liquidity.
by strongboy2005
Sun Jan 27, 2019 5:07 pm
Forum: Personal Investments
Topic: Schwab does not allow specific tax lots to be selected online when selling mutual funds
Replies: 84
Views: 6090

Re: Schwab does not allow specific tax lots to be selected online when selling mutual funds

So it seems for a Schwab taxable account there are a few benefits to using ETFs over mutual funds. First, the only way to sell specific lots at Schwab is via ETFs. Second, the ETFs are more tax efficient than the Schwab mutual fund equivalents. Third, there are more tax loss partners among the ETFs....
by strongboy2005
Sun Jan 27, 2019 4:57 pm
Forum: Personal Investments
Topic: Schwab does not allow specific tax lots to be selected online when selling mutual funds
Replies: 84
Views: 6090

Re: Schwab does not allow specific tax lots to be selected online when selling mutual funds

It appears you can use spec ID with ETFs at Schwab. Any way to switch over your mutual funds to the ETF versions without a taxable event?