We have the same account. It is basically a stable value fund. The rate is guaranteed from year to year.
It returns similar to a bond fund but has characteristics of a money market fund. I just classify it as a bond fund in my allocation.
Be glad you have it.
Search found 235 matches
- Sat Jan 25, 2020 2:29 pm
- Forum: Personal Investments
- Topic: Classifying Minnesota Life General Account in retirement portfolio
- Replies: 5
- Views: 2094
- Sat Sep 07, 2019 6:37 am
- Forum: Personal Investments
- Topic: VTIAX International fund - should I give up on it?
- Replies: 297
- Views: 44224
Re: VTIAX International fund - should I give up on it?
To a large extent investing in international funds is a currency play (call it currency diversification if you wish). When the US dollar is in a strong trend (as it is now) international funds will likely lag. When the dollar weakens international funds should do well again.
Currency trends can last a long time (multi year). So one may question whether it is best to wait for the dollar to weaken before making large commitments to international funds. You may miss early international gains but still reap the rewards of long trends.
Call it market timing if you wish. In the mean time Total International will likely lag Total US.
Currency trends can last a long time (multi year). So one may question whether it is best to wait for the dollar to weaken before making large commitments to international funds. You may miss early international gains but still reap the rewards of long trends.
Call it market timing if you wish. In the mean time Total International will likely lag Total US.
- Mon Dec 17, 2018 12:11 pm
- Forum: Personal Investments
- Topic: Brokerage Account issues
- Replies: 5
- Views: 526
Re: Brokerage Account issues
Livesoft, I wish I had known that before agreeing to the brokerage upgrade.
Thanks for the responses. At this point I'll just have to live with the way the brokerage account works. But I can't say I won't provide my input in Vanguard's next customer satisfaction survey.
Thanks for the responses. At this point I'll just have to live with the way the brokerage account works. But I can't say I won't provide my input in Vanguard's next customer satisfaction survey.
- Mon Dec 17, 2018 10:49 am
- Forum: Personal Investments
- Topic: Brokerage Account issues
- Replies: 5
- Views: 526
Brokerage Account issues
For those who haven't yet converted to a brokerage account I certainly wouldn't do it again. There were issues in the conversion process. I finally got everything resolved. I went to convert a dollar amount from my IRA to my Roth IRA. It wouldn't let me. I had to either list shares instead of dollars or first transfer it to the Federal MM fund and then the next day convert it to the fund of my choice. I wanted to convert from a Total Stock Market fund to a Total Stock Market fund so that I wasn't out of the market. Per Vanguard- you can't do that with a brokerage account. If you want an exact dollar amount you must go to the money market first and then wait a day. Saturday morning I noticed a negative balance in my taxable Federal money mar...
- Fri Nov 16, 2018 8:59 am
- Forum: Personal Consumer Issues
- Topic: which snow blower ?
- Replies: 169
- Views: 18655
- Sat Aug 25, 2018 2:00 am
- Forum: Investing - Theory, News & General
- Topic: 2000-2018 retirement - sequence of returns
- Replies: 153
- Views: 19815
Re: 2000-2018 retirement - sequence of returns
Remember Scott Burns original couch potato (50% S&P 500 or Total Stock and 50% Total Bond or intermediate term bond? Rebalanced at the end of each year.
I remember reading the original article in the paper thinking that it made a lot of sense. Many years later I still think it makes a lot of sense. He went on to create variations (e.g. adding international stocks, etc.) but his original portfolio has met the test of time.
Scott is in retirement now but deserves a pat on the back and a thank you.
I remember reading the original article in the paper thinking that it made a lot of sense. Many years later I still think it makes a lot of sense. He went on to create variations (e.g. adding international stocks, etc.) but his original portfolio has met the test of time.
Scott is in retirement now but deserves a pat on the back and a thank you.
- Sat Jul 14, 2018 3:34 am
- Forum: Personal Investments
- Topic: How to buy T-Bills
- Replies: 33
- Views: 5961
Re: How to buy T-Bills
If you are investing at least $50,000 I personally would look at the Vanguard US Treasury money market fund. Its expense ratio is low (lowest of all Vanguard money markets) and it is 100% treasury bills and therefore 100% state tax free. It certainly is much simpler than buying treasury bills on your own.
- Sat Apr 21, 2018 3:28 am
- Forum: Investing - Theory, News & General
- Topic: I’m still not a fan of international bond funds
- Replies: 319
- Views: 54215
Re: I’m still not a fan of international bond funds
The international bond fund has everything to dislike. Lower quality, higher expenses, higher duration, lower yield, etc.
But- it should be pointed out that the international bond fund has done a better job than the domestic Total Bond during this time of equity problems. Take a look at the returns (not only YTD but also what the 5 year returns will end up being in May). The total equity funds are still positive for the year. Total Bond is not. Perhaps Vanguard is smiling...
With that said I still have no current plans to add international bonds.
But- it should be pointed out that the international bond fund has done a better job than the domestic Total Bond during this time of equity problems. Take a look at the returns (not only YTD but also what the 5 year returns will end up being in May). The total equity funds are still positive for the year. Total Bond is not. Perhaps Vanguard is smiling...
With that said I still have no current plans to add international bonds.
- Sat Feb 17, 2018 4:05 am
- Forum: Personal Consumer Issues
- Topic: Cell phone service
- Replies: 38
- Views: 4904
Re: Cell phone service
Look at the T-Mobile Over 55 deal. Unlimited everything. Free in Canada and Mexico and free text/data internationally. All for $60, taxes inclded, for two lines. My wife and I are considering that plan but we keep hearing that TMobile's rural coverage is poor. I would be interested in people's experience with their rural coverage and how it compares to Verizon. My wife has a T-Mobile cell phone. When we travel west from Minnesota (Glacier, Yellowstone, Utah, etc.) the coverage always seems to stop around North Dakota. And it stays out until we are well on our way back. At Bryce Canyon National Park I heard someone's cell phone ring and he answered it. I made the comment to my wife that he must have Verizon. He heard me and when he got off ...
- Sat Dec 30, 2017 3:39 am
- Forum: Personal Consumer Issues
- Topic: Gulf coast vacation ideas?
- Replies: 9
- Views: 1274
Re: Gulf coast vacation ideas?
We're leaving next week for Gulf Shores Alabama. The Best Western there is right on the beach. There seems to be a lot to do with plenty of walking paths, history, etc. Next week will be colder than we like but the prices for an beachfront room with a balcony were less than $100 per night and we're from Minnesota so it will still be "walk worthy". The prices will be higher in March but the weather should be great.
We're driving from Minnesota so hopefully we don't run into storms!
We're driving from Minnesota so hopefully we don't run into storms!
- Fri Dec 29, 2017 4:01 am
- Forum: Personal Finance (Not Investing)
- Topic: Tax Act discount
- Replies: 9
- Views: 1818
Tax Act discount
For those who use Tax Act if you order prior to the end of the year you get a 30% discount. I kept waiting for an e-mail from them with their discount offer and it never came so went to their website to check.
- Fri Dec 15, 2017 4:42 am
- Forum: Personal Consumer Issues
- Topic: New Honda CRV is MotorTrend's SUV of the year
- Replies: 87
- Views: 11153
Re: New Honda CRV is MotorTrend's SUV of the year
My first new car was the 1973 Motor Trend Car of the Year. How could you go wrong? Unfortunately it was the Chevrolet Vega.
- Tue Nov 14, 2017 3:44 am
- Forum: Personal Consumer Issues
- Topic: Keurig died...what now?
- Replies: 73
- Views: 9059
Re: Keurig died...what now?
Try Taster's Choice French Roast and use a microwave. I got a Keurig for Christmas but still use the instant most of the time. It is convenient, will save you money, and there isn't anything to break or clean. I actually prefer it over everything except Starbucks House Blend and only have that rarely due to cost.
- Sat Nov 04, 2017 2:10 am
- Forum: Investing - Theory, News & General
- Topic: Have TIPS truly been tested yet?
- Replies: 48
- Views: 6032
Re: Have TIPS truly been tested yet?
If you are trying to protect against unexpected inflation TIPS are likely to meet your needs (as well or better than anything else).
I was surprised that they dropped in the 2008 stock crisis. They did not provide the protection that standard treasuries did. Once they recovered I exchanged what I had in the TIPS fund for Total Bond.
I want to feel that my bond allocation will provide protection in a major stock market correction/crash. The TIPs fund failed that test for me.
I was surprised that they dropped in the 2008 stock crisis. They did not provide the protection that standard treasuries did. Once they recovered I exchanged what I had in the TIPS fund for Total Bond.
I want to feel that my bond allocation will provide protection in a major stock market correction/crash. The TIPs fund failed that test for me.
- Fri Sep 08, 2017 4:57 am
- Forum: Investing - Theory, News & General
- Topic: "Fear of Finance?" AARP interview with Jack Bogle
- Replies: 38
- Views: 9252
Re: "Fear of Finance?" AARP interview with Jack Bogle
Mr. Bogle has been consistent over the years saying a maximum of 20% of equities for international. So if you have 50% stocks he would recommend a MAXIMUM of 10% of the portfolio in international stocks. There is an interesting webcast available on Vanguard concerning international investing. The person answering the question actually agrees with Mr. Bogle concerning international investing regarding performance. Both Mr. Bogle and this person say that in the long run the performance of international stocks and domestic stocks will likely be pretty much the same. The reason that Vanguard recommends 40% of equities to be international is not to increase total return but to decrease day to day volatility. Thus in their opinion risk adjusted t...
- Thu Aug 03, 2017 4:07 am
- Forum: Investing - Theory, News & General
- Topic: Is now time to move into international stocks?
- Replies: 57
- Views: 9819
Re: Is now time to move into international stocks?
When looking at valuations international stocks definitely look "cheaper" based on price to book and price to earnings ratios. I think it pays to also look at return on equity and earnings growth rates. The domestic market excels on these measures. So yes, you are paying for a better return on equity and growth rate. Somewhat similar to comparing a value stock with a growth stock. Having some in international stocks will reduce day to day volatility. It likely won't protect you in a big downturn. No one know how the total return figures will compare for the future. IF the value of the dollar is on a multi year downturn international stocks should do well compared to domestic stocks. For the last few months that appears to be the c...
- Mon Jul 31, 2017 3:47 am
- Forum: Investing - Theory, News & General
- Topic: John Bogle Has Been Right About Investing In International Stocks
- Replies: 505
- Views: 49810
Re: John Bogle Has Been Right About Investing In International Stocks
I don't know if it has been pointed out but I believe Taylor has about 30% of his equities in international (Taylor can correct with the exact amount). So while he admires Mr. Bogle he has decided to keep a substantial portion in international. More than Mr. Bogle recommends. The chart showing returns moving back and forth was excellent. From my viewpoint it may have a pattern. That pattern is that when the winner changes it appears to change in multi year segments. I am guessing that the value of the dollar has a great deal to do with which one is the winner. I have been low on international equities up until a few months back (15-20% of equities). I am now 30% with a pure guess that perhaps the multi year trend of a strong dollar has star...
- Mon Jul 17, 2017 4:25 am
- Forum: Personal Investments
- Topic: Best Investment Options for Inheritance
- Replies: 9
- Views: 1388
Re: Best Investment Options for Inheritance
I don't see a need or benefit to a brokerage account. Just put the entire amount into either the Vanguard Total Stock Market fund or Index 500 fund in a taxable account. Use your 401k or IRA's for bonds.
Avoid complicating things with annuities and leave the account to your heirs on a stepped up basis.
Either reinvest the dividends or use them for those enjoyable things that you may not do otherwise.
Avoid complicating things with annuities and leave the account to your heirs on a stepped up basis.
Either reinvest the dividends or use them for those enjoyable things that you may not do otherwise.
- Mon Jul 03, 2017 10:25 am
- Forum: Investing - Theory, News & General
- Topic: Does Vanguard gain anything from us investing more internationally?
- Replies: 28
- Views: 3861
Re: Does Vanguard gain anything from us investing more internationally?
I do agree with Vanguard that investing internationally in stocks and bonds likely decreases day to day volatility. It is possible that they feel low volatility decreases investors buying and selling and panicking when portfolios drop. Whether total return will increase is anyone's guess (especially with international bonds).
- Wed Jun 14, 2017 7:43 am
- Forum: Investing - Theory, News & General
- Topic: International Bonds
- Replies: 7
- Views: 1574
Re: International Bonds
Jhfenton has a good point. It is surprising that Vanguard doesn't have an actively managed international bond fund. Their fund managers are familiar with them since they seem to invest in them in their actively managed balanced and bond funds. Perhaps that is one advantage of a fund such as Intermediate Term Investment Grade Bond fund at least teamed with Total Bond compared to Total Bond alone.
- Wed Jun 14, 2017 3:59 am
- Forum: Investing - Theory, News & General
- Topic: International Bonds
- Replies: 7
- Views: 1574
International Bonds
I use Total Bond for all of the bond portfolio. I have avoided Total International Bond because of the higher expense, lower credit quality, lower yield, and higher duration.
In reviewing the bond portfolio of Wellesley Income, Core Bond, and Intermediate Term Investment Grade funds I noticed they have many foreign bonds in them. I respect Wellesley (although I don't currently own it). What do the managers see that I have missed? Should I be taking a relook at foreign bonds? Are foreign bonds an asset category where active investing makes sense?
In reviewing the bond portfolio of Wellesley Income, Core Bond, and Intermediate Term Investment Grade funds I noticed they have many foreign bonds in them. I respect Wellesley (although I don't currently own it). What do the managers see that I have missed? Should I be taking a relook at foreign bonds? Are foreign bonds an asset category where active investing makes sense?
- Thu Apr 06, 2017 3:44 am
- Forum: Personal Investments
- Topic: When should one start including TIPS in their bond allocation?
- Replies: 7
- Views: 1330
Re: When should one start including TIPS in their bond allocation?
If you are interested in Vanguard's thoughts on it you can review the Target Retirement portfolio for the approximate year you plan to retire. You will notice no TIPS for someone your age and a gradual increase as you get much closer to retirement.
- Wed Mar 15, 2017 8:24 am
- Forum: Investing - Theory, News & General
- Topic: Shiller says market is "way overpriced" - what a shocker
- Replies: 59
- Views: 8461
Re: Shiller says market is "way overpriced" - what a shocker
Anazon is correct. Bogle did an excellent speech in the late 1990's which was then available on the websites. He talked about how high the equity markets were and how unsustainable it was. He also said you could get 7 1/2% from bond funds so why risk it? You can probably find the speech out on the web.
Alas, I did not listen to his excellent advice and paid the price. Fortunately I hung on and equity prices came back.
Alas, I did not listen to his excellent advice and paid the price. Fortunately I hung on and equity prices came back.
- Wed Mar 15, 2017 4:40 am
- Forum: Personal Investments
- Topic: Do you avoid international investing like Jack Bogle?
- Replies: 151
- Views: 15746
Re: Do you avoid international investing like Jack Bogle?
I am at 20% of stocks. Vanguard research says you will get 85% of the diversification benefits with 20%. I believe most of the benefits of international diversification is in currency diversification, not company diversification. It would be interesting to have Larry (or someone into research) explore this. Over the years it has seemed that the value of the dollar will determine whether international diversification will make you money or lose you money. Even more importantly, it seems the value of the dollar goes in trends many times lasting years. You don't appear to have to market time it simply look at the current trend you are in and adjust it when the trend reverses (no worry about missing a few months). We are in a strong dollar tren...
- Tue Mar 14, 2017 4:46 am
- Forum: Personal Finance (Not Investing)
- Topic: Vanguard - Money Market Funds
- Replies: 16
- Views: 4001
Re: Vanguard - Money Market Funds
I do and have since the mid 1980's. The higher interest rates are nice but another main reason I use a money market in my taxable account is the ease in transferring money to and from other accounts (including our checking account). If the checking account gets too big I transfer some to the money market and visa versa. Works for me. Yes, you can set it up with Vanguard to do the same thing with a savings account but the bank I'm with pays so little that it isn't worth opening one up.
- Sun Mar 12, 2017 3:06 pm
- Forum: Personal Investments
- Topic: ST TIPS Volatility
- Replies: 8
- Views: 1098
Re: ST TIPS Volatility
A wide variety of replies. Thank you.
I guess another option would be to open a money market fund within the IRA and then have Total Bond dividends fund it.
There are many options. I'm not sure any are better than Total Bond and taking RMD's from Total Bond or Total Stock depending upon which way the market goes. Of course if rates are moving up both Total Bond and Total Stock could have moved down.
The future is unknown. If rates move up 1 % it will take my Total Bond over two years to get back to even.
I guess another option would be to open a money market fund within the IRA and then have Total Bond dividends fund it.
There are many options. I'm not sure any are better than Total Bond and taking RMD's from Total Bond or Total Stock depending upon which way the market goes. Of course if rates are moving up both Total Bond and Total Stock could have moved down.
The future is unknown. If rates move up 1 % it will take my Total Bond over two years to get back to even.
- Sun Mar 12, 2017 6:01 am
- Forum: Personal Investments
- Topic: ST TIPS Volatility
- Replies: 8
- Views: 1098
ST TIPS Volatility
In three years I will have to start making RMD's. For this reason I am considering moving some of my Total Bond Index to shorter duration bonds to at least have enough to make a couple of years worth of RMD's. I am considering the Short Term Inflation Protected Securities fund for several reasons. It is second in expense ratio to the Total Bond fund so I wouldn't be giving up much in expenses. It contains bonds that are not in the Total Bond fund so I would be adding diversification. It is shorter duration to hopefully provide more safety than Total Bond in case interest rates go up considerable over the next three years. It is the short term bond fund that Vanguard uses in their Target Retirement funds. And yes, it may help if inflation sh...
- Fri Jan 27, 2017 4:07 am
- Forum: Investing - Theory, News & General
- Topic: Swedroe's guidelines to Bonds
- Replies: 137
- Views: 19420
Re: Swedroe's guidelines to Bonds
A nice advantage of Vanguard Total Bond is that the expense ratio is the lowest at only 6 basis point. This ads up for larger portfolios. I personally am not concerned about the corporates and MBS mixed into Total Bond. Since I will be taking RMD's in three years the intermediate duration (especially if we are entering a rising rate environment) may be a concern. So far I am 100% Total Bond but may consider a shorter duration fund in addition to Total Bond for future RMD's. Total Bond performed well in 2008 when you wanted bonds to offset losses in stocks. My old Inflation Protected fund was a disappointment (sold for Total Bond after it recovered). If I would have had a pure corporate fund in 2008 I likely would have been disappointed also.
- Tue Jan 17, 2017 5:33 am
- Forum: Personal Consumer Issues
- Topic: Biting the bullet and getting off the roof.
- Replies: 41
- Views: 8019
Re: Biting the bullet and getting off the roof.
I went with Leaf Guard last August and am very happy. I fell twice from the ladder and found myself cleaning the gutters almost weekly since they clogged with virtually every rain. No more problems! I had tried screens, etc. before but was never satisfied.
For me it was worth the money and my only regret is that I didn't do it sooner.
For me it was worth the money and my only regret is that I didn't do it sooner.
- Sun Jan 15, 2017 4:47 am
- Forum: Personal Investments
- Topic: Sectarian / Minnesota Life VAL Policy Mutual Funds
- Replies: 4
- Views: 693
Re: Sectarian / Minnesota Life VAL Policy Mutual Funds
I'm guessing you mean "Securian" which is the name of the downtown St. Paul company.
I suggest you look it up on Morningstar.com . That is a good place to go if you want to see history and comments on a non-Vanguard mutual fund.
I suggest you look it up on Morningstar.com . That is a good place to go if you want to see history and comments on a non-Vanguard mutual fund.
- Sun Jan 15, 2017 4:42 am
- Forum: Investing - Theory, News & General
- Topic: Flagship Reps
- Replies: 91
- Views: 11937
Re: Flafship Reps
I haven't received any notice yet but if the change is correct it won't bother me. I do feel it will make a difference to some, however. My sister enjoys having one rep. call her every year to make annual recommendations on asset allocation and RMD amounts. Talking to someone different (with perhaps different ideas) each year will be a reduction of services.
Being a skeptic I wonder if the change may be a way to encourage more people to go with their new personal advisor service? Perhaps too many people were using their Flagship Rep. as a substitute.
Being a skeptic I wonder if the change may be a way to encourage more people to go with their new personal advisor service? Perhaps too many people were using their Flagship Rep. as a substitute.
- Tue Jan 10, 2017 4:21 am
- Forum: Personal Consumer Issues
- Topic: Getting Subaru Legacy(4Cyl 2.5L or V6 3.6R?)
- Replies: 56
- Views: 23306
Re: Getting Subaru Legacy(4Cyl 2.5L or V6 3.6R?)
We bought a 2016 Legacy in July and have been very happy with it. We test drove the 2.5 and had no problems with its performance (we didn't bother test driving the 3.6). It seemed especially snappy from a dead stop (not sure if that is the torque, the CVT, or a touchy accelerator). We bought the Subaru for two reasons. The main reason was the Eyesight safety option. It seemed to be the best of all mid size sedans at the time. I highly recommend it. It comes with everything turned on which is the way we leave it. Every car should have it (and I believe will soon as mandated by the govt.). It is well worth the extra money. The second reason we bought the Subaru was to try AWD. We wanted to try it (although we've never had a problem with front...
- Sun Jan 08, 2017 4:50 am
- Forum: Personal Investments
- Topic: Suggestions for 70-year-old retiree's portfolio
- Replies: 18
- Views: 8180
Re: Suggestions for 70-year-old retiree's portfolio
If you are considering the route of going with two balanced funds I would suggest at least considering the Wellesley Income fund as one of them. The last time I checked it had about 18% of stocks as foreign and has had a good record since 1970. As soon as you deviate from Total Stock and Total Bond the expenses go up. I like the idea of Total Stock in the Roth. I'm not sure about the idea of doing Roth conversions, however. That would be more to the benefit of heirs than your Mother in my opinion. It is nice having a short term bond fund for taking RMD's from if rates go up fast and bonds and stocks are hit. Nice but probably wouldn't make a huge difference. I'm 67 now so I'll be looking at RMD's soon. I don't have Wellesley at this time (I...
- Fri Dec 30, 2016 3:00 pm
- Forum: Investing - Theory, News & General
- Topic: Are International Markets overdue for great gains?
- Replies: 43
- Views: 5176
Re: Are International Markets overdue for great gains?
International stocks will likely start outperforming domestic stocks when the value of the US dollar starts to weaken relative to foreign currencies.
When will this be? I don't know. It can take years for these trends to happen.
I'm sure there are other factors. Foreign companies have an edge in competing with imported US goods, for example, when their currencies are weak.
Just don't expect foreign stocks to bail you out when US stocks plunge.
So far people following Bogel's advice have done well. That will change when the value of the dollar changes.
When will this be? I don't know. It can take years for these trends to happen.
I'm sure there are other factors. Foreign companies have an edge in competing with imported US goods, for example, when their currencies are weak.
Just don't expect foreign stocks to bail you out when US stocks plunge.
So far people following Bogel's advice have done well. That will change when the value of the dollar changes.
- Fri Nov 25, 2016 2:40 pm
- Forum: Personal Investments
- Topic: Comparing Balanced Funds
- Replies: 4
- Views: 1510
Re: Comparing Balanced Funds
Add Wellington to your mix.
- Fri Nov 25, 2016 1:57 pm
- Forum: Investing - Theory, News & General
- Topic: Why International Stocks
- Replies: 73
- Views: 12728
Re: Why International Stocks
It is important to remember that currency trends can last a long time. The dollar is at a 13 year high. If it remains so (or goes higher) international stocks will be facing a strong headwind. How long this will last is unknown. I am guessing that Larry will acknowledge, however, that these trends can last years (and already have). The fact that international companies are undervalued relative to American companies is offset to some degree (I don't know how much) by currency changes. At some point the dollar will weaken and Total International will start beating Total Stock. Until then, however, you better be prepared to withstand tracking error (watching Total International underperform). If you are not willing to accept tracking error you...
- Tue Sep 20, 2016 3:47 am
- Forum: Personal Finance (Not Investing)
- Topic: Recommendation on Tax Preparation Software
- Replies: 26
- Views: 3161
Re: Recommendation on Tax Preparation Software
I have used Tax Act for many years and have been happy. It costs less but does what is needed.
- Sat Aug 13, 2016 3:40 am
- Forum: Personal Finance (Not Investing)
- Topic: Roth conversion & state income taxes
- Replies: 12
- Views: 1704
Re: Roth conversion & state income taxes
I live in Minnesota so I face the same situation with state taxes. In Minnesota property tax refunds are also affected so I also lost money there as my income went up with Roth conversions. The first year I retired I bit the bullet and converted up to the 25% bracket. I did a smaller chunk the second year. Last year I didn't convert anything even though I could have. From a purely logical standpoint you should likely convert up to the 25% bracket if like me you will go from the 15% to the 25% when RMD's start at age 70. You're going to pay it sooner or later unless you hold out hope of moving to Vancouver. Oregon is about as likely as Minnesota to reduce state income taxes. So "pay me now or pay me more later". I have elected to w...
- Wed Dec 16, 2015 4:39 am
- Forum: Investing - Theory, News & General
- Topic: Should I follow Jack Bogle in "I don't do International"
- Replies: 90
- Views: 12123
Re: Should I follow Jack Bogle in "I don't do International"
Thank you, Dancer. The Global Minimum Volatility fund is attractive for more than one reason. Hedging currency risk is a big plus for it. I checked it out when it first came out but didn't invest in it. I have a fairly simple portfolio and didn't want to add another fund but it may be worth another look.
- Mon Dec 14, 2015 7:43 am
- Forum: Personal Finance (Not Investing)
- Topic: Should I continue to postpone Social Security?
- Replies: 27
- Views: 3822
Re: Should I continue to postpone Social Security?
The odds are that your wife will benefit most by delaying the highest earners social security because she will likely outlive you by quite a few years (statistically). From a pure dollars standpoint you will likely be ahead by delaying the highest earner's social security (yes, the free money of a restricted application enters into it). With that said if your wife understands how it works and how it could affect her income after your death I would be inclined to listen closely to what she says and why she favors it. For example, does she favor taking it now because she feels you could enjoy a higher living standard now? Are you cutting corners because you are dipping too much into your portfolio for comfort? How strongly she feels and why s...
- Mon Dec 14, 2015 7:27 am
- Forum: Investing - Theory, News & General
- Topic: Vanguard Equity Income (VEIPX)
- Replies: 55
- Views: 17647
Re: Vanguard Equity Income (VEIPX)
One question may be to ask is how any income oriented fund will do in a rising interest rate environment. I remember watching my Fidelity Equity Income fund languish many years ago.
If I were going to invest in a higher than market yield domestic equity fund I would be comfortable with Vanguard Equity Income.
If I were going to invest in a higher than market yield domestic equity fund I would be comfortable with Vanguard Equity Income.
- Mon Dec 14, 2015 5:06 am
- Forum: Investing - Theory, News & General
- Topic: Should I follow Jack Bogle in "I don't do International"
- Replies: 90
- Views: 12123
Re: Should I follow Jack Bogle in "I don't do International"
While Morningstar may be correct that currency risks balance out over time it is important to point out that it can take a long time. Perhaps someone can come up with a long term chart showing the US dollar vs. others. My recollection of international returns is that they seem to go in trends and that the trends can last for quite some time. The dollar has been strong for quite a while now (look at the 1, 5, and 10 year returns of Total Stock vs. Total International). As the Fed raises rates and if it is true other countries are still lowering rates my understanding is that the dollar will become even stronger. If this is true 2016 may be another year of underperformance for Total International. This may lead someone to ask if currency dive...
- Thu Dec 10, 2015 4:08 am
- Forum: Personal Investments
- Topic: Convert to Roth if you have a lot to convert?
- Replies: 31
- Views: 4803
Re: Convert to Roth if you have a lot to convert?
You didn't mention whether you have equities in taxable accounts. We are getting quite a bit of dividends from our equity taxable accounts and they are all currently tax free since we are in the 15% tax bracket (until RMD's). We would give this up if we converted enough to push us to the 25% bracket.
- Wed Dec 09, 2015 8:41 am
- Forum: Investing - Theory, News & General
- Topic: New Vanguard International Requirement Thoughts
- Replies: 10
- Views: 1831
Re: New Vanguard International Requirement Thoughts
Vanguard's thoughts on international investing are clear. Simply look at Life Strategy funds or Total Retirement funds or read any of their papers. If you feel uncomfortable with their advice it would not seem to make sense to give them 1% to manage your portfolio. The service is intended for those who don't want to manage their portfolio and want to entrust it to someone else. Some because they don't have the knowledge. Others because they don't have the interest. Perhaps others to have someone to blame if things don't work out... Vanguard international stock funds are not currency hedged. Others may disagree but to me that means that much of their over performance or under performance related to the domestic market is determined by the va...
- Mon Oct 26, 2015 10:57 am
- Forum: Personal Finance (Not Investing)
- Topic: Lump Sum or Pension - would like another perspective
- Replies: 28
- Views: 2549
Re: Lump Sum or Pension - would like another perspective
You can check www.immediateannuities.com to see how much and what type of an annuity a particular lump sum would buy.
- Mon Oct 19, 2015 4:28 am
- Forum: Investing - Theory, News & General
- Topic: Eliminate International?
- Replies: 78
- Views: 9070
Re: Eliminate International?
Everyone has to determine their own comfort level. For me it has been 20% of stocks to international. In addition to comfort level the extra 9 basis points for international investing also matters. Almost tripling expenses adds up.
- Mon Oct 19, 2015 4:05 am
- Forum: Investing - Theory, News & General
- Topic: Retirees doing 50/50
- Replies: 35
- Views: 6482
Re: Retirees doing 50/50
I'm 65 and have been retired 3 1/2 years. We went 50-50 before retirement and plan to stay that way indefinitely. I found that 66% stocks was more than I liked going into the 2000 bear market. I can handle 50-50 without losing sleep. Reading the book by Ben Stein "Yes Boomers Can Retire" helped as did Ben Graham and the notion of simplicity. Two important points, however. People are different in their needs from their portfolio (we could live fine on pensions and social security) and their comfortable sleeping points. 2000 and 2008 should have been good learning points as far as comfort levels go. I still keep my spreadsheet updated that shows how much we would have with a 50% correction in stocks. If I'm okay with that number I'm...
- Sun Oct 18, 2015 5:28 am
- Forum: Personal Finance (Not Investing)
- Topic: SS File Suspend then file restricted for spouse
- Replies: 8
- Views: 1603
Re: SS File Suspend then file restricted for spouse
Getting about $8,000 cash now for an income stream of less than $30 a month in four years sounds like a pretty good deal. I don't remember the exact amount but it was two spousal payments and two of my payments (before suspension). I agree that having to decide this while sitting in front of her as opposed to having it figured out in advance was not good. But in all of the reading I've done on the subject including this board, I don't remember the option ever being discussed. If I had known about it I could have done some calculations in advance. Based on other things in social security getting the two payments early for a reduction once I'm 70 is very likely to be actuarially equivalent if I live a normal lifespan. That leaves the two spou...
- Sat Oct 17, 2015 7:56 am
- Forum: Personal Finance (Not Investing)
- Topic: SS File Suspend then file restricted for spouse
- Replies: 8
- Views: 1603
Re: SS File Suspend then file restricted for spouse
Thanks for the information. It does soften the blow.
I still missed August and September, however, so I still missed out on about $2500. Hopefully my post will help someone in similar circumstances.
I still missed August and September, however, so I still missed out on about $2500. Hopefully my post will help someone in similar circumstances.
- Sat Oct 17, 2015 7:05 am
- Forum: Personal Finance (Not Investing)
- Topic: SS File Suspend then file restricted for spouse
- Replies: 8
- Views: 1603
SS File Suspend then file restricted for spouse
My wife reached full retirement age (FRA) in August. I will reach it in December. I thought I had fully researched the subject and went with the plan for me to file and suspend when I reached FRA and then to have my wife file a restricted application for spousal benefits only. Then we would both continue to earn delayed credits and file for benefits when we each reach age 70. I called social security in September when I was within 90 days of my FRA. They said I would need to go to a local office to do what I wanted and that it could not be done online or over the phone. They said the calendar for December wasn't out yet and to call back in October for an appointment. Okay, I did all that and recently went to our local office. I had based ou...