Search found 4563 matches

by aristotelian
Sun Sep 23, 2018 6:10 am
Forum: Personal Finance (Not Investing)
Topic: I'm just itching to tax-GAIN harvest
Replies: 7
Views: 1021

Re: I'm just itching to tax-GAIN harvest

Seems like a good idea. What's holding you back?
by aristotelian
Sat Sep 22, 2018 7:45 pm
Forum: Investing - Help with Personal Investments
Topic: Pay taxes on EE bonds now or later?
Replies: 10
Views: 851

Re: Pay taxes on EE bonds now or later?

2) If only looking at taxes, paying taxes now and then year by year is better because they will be in a much higher tax bracket in 3-5 years. But isn't there a benefit also to tax deferral? The money they could use to pay taxes now could be otherwise saved/invested? Not sure how to compare the two ...
by aristotelian
Sat Sep 22, 2018 7:04 pm
Forum: Investing - Help with Personal Investments
Topic: Pay taxes on EE bonds now or later?
Replies: 10
Views: 851

Re: Pay taxes on EE bonds now or later?

Can't they be used tax free for education? Cash them now and pay no tax.
by aristotelian
Sat Sep 22, 2018 6:04 pm
Forum: Investing - Help with Personal Investments
Topic: How to fund education for grandchildren: various strategies? Help?
Replies: 23
Views: 1193

Re: How to fund education for grandchildren: various strategies? Help?

I see no downside to 529. Great tax benefit, strong incentive to go to college, and you retain control of the funds. I would only not do it if you had some reason to believe the child is unlikely to go to college. I prefer just saving in taxable account over UTMA. There is just no reason to give up ...
by aristotelian
Sat Sep 22, 2018 1:32 pm
Forum: Investing - Theory, News & General
Topic: Why do Schwab fund only pay distributions once a year?
Replies: 7
Views: 958

Re: Why do Schwab fund only pay distributions once a year?

Maybe it helps them look like they are outperforming with their share price slightly inflated?
by aristotelian
Fri Sep 21, 2018 2:00 pm
Forum: Personal Consumer Issues
Topic: My Very First Smartphone — Please Critique This Plan
Replies: 80
Views: 3520

Re: My Very First Smartphone — Please Critique This Plan

Seems like overkill going from a flip phone to a state of the art flagship. Clark Howard recommends the Moto G series, which you can get in the $200 range. I have used even cheaper phones than that and have been completely satisfied. The only complaint I would have is that the cameras usually aren't...
by aristotelian
Fri Sep 21, 2018 12:57 pm
Forum: Investing - Help with Personal Investments
Topic: Portfolio with 3.2% Yield
Replies: 16
Views: 2123

Re: Portfolio with 3.2% Yield

You are making selective bets on certain types of stocks. You are taking a risk that you may underperform (as Wellesley has this year). Also, having a high dividend yield can give you less flexibility in managing your tax efficiency.
by aristotelian
Fri Sep 21, 2018 12:41 pm
Forum: Investing - Help with Personal Investments
Topic: The Betterment 80/20 savings plan
Replies: 4
Views: 707

Re: The Betterment 80/20 savings plan

I doubt Betterment's solution will make any difference to you long term vs CD's, money market funds, etc. However, if you like their ETF's, I see no reason why you can't copy their allocation and save yourself on their management fee.
by aristotelian
Fri Sep 21, 2018 12:28 pm
Forum: Personal Finance (Not Investing)
Topic: Can we use a 529 plan to pay for tuition for daycare and PreK programs ?
Replies: 20
Views: 6758

Re: Can we use a 529 plan to pay for tuition for daycare and PreK programs ?

Wouldn't it be better anyway to take the Dependent Care tax credit (or use Flexible Spending Account) and take advantage of long term tax free growth in the 529?
by aristotelian
Fri Sep 21, 2018 10:59 am
Forum: Investing - Theory, News & General
Topic: Allocating 1/3 of Investable Assets to Roth Accounts
Replies: 35
Views: 1851

Re: Allocating 1/3 of Investable Assets to Roth Accounts

The article gives no reasoning. You are right, article is wrong,
by aristotelian
Fri Sep 21, 2018 10:45 am
Forum: Investing - Help with Personal Investments
Topic: should I invest it all now?
Replies: 7
Views: 1063

Re: should I invest it all now?

Based on your profile, I would enter slowly, if at all. If you might freak out and eat the loss at the first sign of correction, then you should stay out. One possibility would be to enter very slowly, maybe 5-10%, and see how it feels. The variables in risk tolerance are need, willingness, and abil...
by aristotelian
Fri Sep 21, 2018 10:40 am
Forum: Investing - Help with Personal Investments
Topic: Roth IRA, ETFs, and Settlement Funds
Replies: 3
Views: 201

Re: Roth IRA, ETFs, and Settlement Funds

Yes to your first question. (But if uninvested cash will cause you OCD, there is no downside to switching in a Roth IRA).
by aristotelian
Fri Sep 21, 2018 8:55 am
Forum: Personal Finance (Not Investing)
Topic: Hubby soon to be laid off
Replies: 74
Views: 7440

Re: Hubby soon to be laid off

Payoff that mortgage, rent the apartment ... and go take a cruise. You guys are golden. :beer BTW, I don't know who you use for insurance but if its not Amica, give them a call. They don't work through agents so you have to just call their main 1-800 number. http://www.amica.com Agree - pay off the...
by aristotelian
Fri Sep 21, 2018 8:24 am
Forum: Personal Finance (Not Investing)
Topic: Credit card spending $20000
Replies: 10
Views: 1740

Re: Credit card spending $20000

Cap One Quicksilver 1.5% cash back ticks all the boxes except sign on bonus. This is my all purpose card. If this is just a one time thing, there are cards with better bonuses, but if you are looking for a simple long term solution, I have been very happy with it.
by aristotelian
Fri Sep 21, 2018 8:06 am
Forum: Investing - Help with Personal Investments
Topic: Out of Market
Replies: 23
Views: 3235

Re: Out of Market

Agree, don't get into market timing. If you are worried about inflation or rising interest rates, consider allocating a portion to TIPS. I do like CD ladders as a way of increasing yield a bit over Treasuries without increasing risk. One concern I will point out, with all due respect, at your age on...
by aristotelian
Thu Sep 20, 2018 5:43 pm
Forum: Personal Finance (Not Investing)
Topic: Traveling overseas .. credit cards? cash exchange?
Replies: 41
Views: 2249

Re: Traveling overseas .. credit cards? cash exchange?

For cash, I also use Schwab checking account with free ATM withdrawals worldwide. I use a brick and mortar bank for my primary checking, but I use this account for cash when traveling. I would not hesitate to use it as a primary checking account, except that I would be annoyed with the local banks c...
by aristotelian
Thu Sep 20, 2018 5:18 pm
Forum: Investing - Theory, News & General
Topic: Bad Investments Within Foundation
Replies: 5
Views: 279

Re: Bad Investments Within Foundation

I work for a foundation such as you describe. We have a finance committee of our board members that sets the policy. They would not listen to me but they might listen to you if you are a big donor. For what it's worth, our portfolio has outperformed the S&P by 20 basis points, invested in 90% stocks...
by aristotelian
Thu Sep 20, 2018 5:13 pm
Forum: Investing - Theory, News & General
Topic: Bond Funds vs. Individual Bonds: Can someone quanitfy?
Replies: 31
Views: 1773

Re: Bond Funds vs. Individual Bonds: Can someone quanitfy?

To be clear you want to compare: i) Buying a 10 year bond and holding to maturity ii) Buying a bond fund and holding it for 10 years? If so i can make you a graph I'm not sure what the OP wants but an apples to apples comparison would be a bond ladder vs bond fund. If you buy one bond to hold for 1...
by aristotelian
Thu Sep 20, 2018 5:09 pm
Forum: Investing - Help with Personal Investments
Topic: Very Basic Investing Question on Portfolio Growth Day-to-Day
Replies: 3
Views: 449

Re: Very Basic Investing Question on Portfolio Growth Day-to-Day

Yes. If you are not seeing that, I wonder if you are looking at yesterday's price? Mutual funds prices do not update until after market close, usually around 6:00p.
by aristotelian
Thu Sep 20, 2018 2:56 pm
Forum: Personal Finance (Not Investing)
Topic: Hubby soon to be laid off
Replies: 74
Views: 7440

Re: Hubby soon to be laid off

No offense, but why stay in a HCOL area for a job that only pays $30-$40K? Sell the house and that $120K mortgage becomes $200-$300K cushion for your portfolio. I don't know why this is always such a common suggestion on this forum. Many people really like where they live and moving is a huge expen...
by aristotelian
Thu Sep 20, 2018 2:07 pm
Forum: Personal Finance (Not Investing)
Topic: Hubby soon to be laid off
Replies: 74
Views: 7440

Re: Hubby soon to be laid off

No offense, but why stay in a HCOL area for a job that only pays $30-$40K? Sell the house and that $120K mortgage becomes $200-$300K cushion for your portfolio. You don't say what your expenses are. Personally, I think you are in excellent shape to retire. If you both claim SS today, you could pull ...
by aristotelian
Thu Sep 20, 2018 1:54 pm
Forum: Investing - Theory, News & General
Topic: Buying VWIUX Today [Vanguard Intermediate-Term Tax-Exempt Muni Bond]
Replies: 38
Views: 3291

Re: Buying VWIUX Today

I moved to ST Treasury a few months ago in my HSA. I will be waiting a bit longer before moving back into Intermediate. Just seems like interest rates still have room to run higher.
by aristotelian
Thu Sep 20, 2018 10:50 am
Forum: Personal Finance (Not Investing)
Topic: What is a reasonable fee charged by financial planners?
Replies: 30
Views: 2121

Re: What is a reasonable fee charged by financial planners?

Personally, they would need to pay me to sit through their sales pitch.
by aristotelian
Thu Sep 20, 2018 9:00 am
Forum: Investing - Help with Personal Investments
Topic: Total Bond or Total Bond/short-term
Replies: 48
Views: 4661

Re: Total Bond or Total Bond/short-term

... I'm sorry if this is off topic but why not consider a Cd ladder instead of a short-term bond ladder or fund? You get zero interest rate risk and the yield is higher than ST bonds or funds (currently, >3% on 4 year CD is widely available). Nowadays, you can purchase CDs with minimal early withdr...
by aristotelian
Thu Sep 20, 2018 8:58 am
Forum: Personal Finance (Not Investing)
Topic: Should we temporarily reduce our retirement contributions in order to pay off our $400k mortgage in 7 years?
Replies: 78
Views: 6408

Re: Should we temporarily reduce our retirement contributions in order to pay off our $400k mortgage in 7 years?

Another no. Tax deferral is a powerful advantage. You should max your retirement accounts if you can. Only exception would be if you are in a low tax bracket but I have a feeling that is not the case for OP.

If you want to prioritize the mortgage over taxable brokerage account, that would make sense.
by aristotelian
Thu Sep 20, 2018 7:03 am
Forum: Investing - Help with Personal Investments
Topic: Saving for house down payment with Vanguard VWINX or VSCGX?
Replies: 15
Views: 1653

Re: Saving for house down payment with Vanguard VWINX or VSCGX?

Fine if you can tolerate some risk of loss. Wellesley has had negative return this year last I checked due to rising rates and their sticks underperforming. CDs or short term bond fund would be safest options to outperform HY savings with minimal risk.
by aristotelian
Wed Sep 19, 2018 2:01 pm
Forum: Investing - Theory, News & General
Topic: Why should bond duration = investment horizon?
Replies: 45
Views: 2384

Re: Why should bond duration = investment horizon?

The idea is that if interest rates increase, the price will drop but the yield will increase. If you sell prematurely, you could take a loss. If your horizon is long enough to hold through the fund duration, the higher yield will eventually compensate for the lower price.
by aristotelian
Wed Sep 19, 2018 10:11 am
Forum: Investing - Theory, News & General
Topic: Bonds. Why? (vs. cds)
Replies: 59
Views: 4403

Re: Bonds. Why? (vs. cds)

The government website Investor.gov offers pretty good basic definitions of bonds and CDs. A certificate of deposit (CD) is a savings account that holds a fixed amount of money for a fixed period of time, such as six months, one year, or five years, and in exchange, the issuing bank pays interest. ...
by aristotelian
Wed Sep 19, 2018 8:28 am
Forum: Personal Finance (Not Investing)
Topic: What's the best early retirement strategy for us?
Replies: 39
Views: 3058

Re: What's the best early retirement strategy for us?

Do a search for Roth conversion ladders in early retirement. You can start pulling from your 401k within 5 years.
by aristotelian
Wed Sep 19, 2018 6:26 am
Forum: Investing - Theory, News & General
Topic: Bonds. Why? (vs. cds)
Replies: 59
Views: 4403

Re: Bonds. Why? (vs. cds)

A CD outside FDIC protection is certainly a bond. Sorry, but no. A CD is still a CD, regardless of insurance protection. If its not registered and not marketable, its not a bond. The US Government may take exception to your definition. Savings Bonds are not marketable, yet it certainly says "bonds"...
by aristotelian
Tue Sep 18, 2018 11:08 pm
Forum: Investing - Theory, News & General
Topic: Bonds. Why? (vs. cds)
Replies: 59
Views: 4403

Re: Bonds. Why? (vs. cds)

Thesaints wrote:
Tue Sep 18, 2018 10:50 pm
aristotelian wrote:
Tue Sep 18, 2018 10:41 pm
CD's are bonds and have the same interest rate risk as other bonds.
No, if they fall under FDIC protection, which is the case for most small investors. They are riskless.
Sure, they are FDIC insured bonds. They still have interest rate risk.
by aristotelian
Tue Sep 18, 2018 10:41 pm
Forum: Investing - Theory, News & General
Topic: Bonds. Why? (vs. cds)
Replies: 59
Views: 4403

Re: Bonds. Why? (vs. cds)

CD's are bonds and have the same interest rate risk as other bonds.
by aristotelian
Tue Sep 18, 2018 6:11 pm
Forum: Investing - Help with Personal Investments
Topic: Taking Over Management of $7M Portfolio - Need Review/Help Allocating
Replies: 50
Views: 3965

Re: Taking Over Management of $7M Portfolio - Need Review/Help Allocating

Why do you prefer Corporate Bonds to Munis? Seems to me the risk/reward are very similar but muni's are have tax advantage. Your plan sounds good but if Grandma likes her dividend stocks I would be tempted to sell some losers and let the rest ride. Agree with others, you are putting yourself in posi...
by aristotelian
Tue Sep 18, 2018 1:31 pm
Forum: Investing - Theory, News & General
Topic: Bond Funds vs. Individual Bonds: Can someone quanitfy?
Replies: 31
Views: 1773

Re: Bond Funds vs. Individual Bonds: Can someone quanitfy?

Thank you so much everyone for your replies. I guess I just wish I completely understood the math and could be completely convinced that bond funds are the way to go. I recognize that I don't really have a good alternative because I am not going to create and manage my own very diversified portfoli...
by aristotelian
Tue Sep 18, 2018 12:13 pm
Forum: Investing - Help with Personal Investments
Topic: Buying I-Bonds
Replies: 9
Views: 724

Re: Buying I-Bonds

Thanks everyone, I likely should have been more clear. I often see commented that I-bonds can be held in ones Taxable account. I am trying to understand how they actually get into the taxable account. Is this performed at the time of purchase through Treasury Direct? Maybe I am misunderstanding thi...
by aristotelian
Tue Sep 18, 2018 12:06 pm
Forum: Investing - Help with Personal Investments
Topic: $4900.00 INHERITED IRA
Replies: 9
Views: 878

Re: $4900.00 INHERITED IRA

Unless you are right at the edge of your tax bracket, I would go ahead and cash it out. Otherwise you will probably end up sticking your inheritor with an even smaller inherited IRA to deal with.
by aristotelian
Tue Sep 18, 2018 10:30 am
Forum: Investing - Theory, News & General
Topic: Bond Funds vs. Individual Bonds: Can someone quanitfy?
Replies: 31
Views: 1773

Re: Bond Funds vs. Individual Bonds: Can someone quanitfy?

rbrb wrote:
Tue Sep 18, 2018 10:26 am
Does that really in the end do better than individual bonds?
No, they would do the same (assuming you were able to buy a representative group of individual bonds roughly equivalent to the index you are following).
by aristotelian
Tue Sep 18, 2018 10:19 am
Forum: Personal Consumer Issues
Topic: How to watch baseball playoffs without cable
Replies: 31
Views: 1842

Re: How to watch baseball playoffs without cable

I use www.reddit.com you can find links to all sports and games there. Search in the search block.. ie.. MLBstreams, NFLstreams, GOLFstreams.. and it is all FREE! Not legal. What law does watching (as opposed to hosting) the stream violate? And has anyone in the history of the world been prosecuted...
by aristotelian
Mon Sep 17, 2018 4:58 pm
Forum: Investing - Help with Personal Investments
Topic: Ineligible Roth Contributions
Replies: 10
Views: 850

Re: Ineligible Roth Contributions

In your case, since it sounds like it is a one time excess contribution, the simplest option is to leave it as is and pay a 6% excise tax. You will then need to undercontribute by the same amount next year. After that, you are done and you can resume normal contributions.
by aristotelian
Mon Sep 17, 2018 4:48 pm
Forum: Personal Finance (Not Investing)
Topic: Cheap Flights
Replies: 23
Views: 2212

Re: Cheap Flights

Check out Scott's Cheap Flights. He finds some great deals especially off season international flights.
by aristotelian
Mon Sep 17, 2018 3:28 pm
Forum: Personal Finance (Not Investing)
Topic: Pay large medical bills - cash or HSA?
Replies: 8
Views: 504

Re: Pay large medical bills - cash or HSA?

If I understand correctly, you have HSA from a previous employer and FSA from current employer. For FSA, the money is "use it or lose it", so you should go ahead and spend that down. For any expenses over the FSA, it would be advantageous to pay cash while investing the HSA tax free. (However, if th...
by aristotelian
Mon Sep 17, 2018 2:55 pm
Forum: Investing - Help with Personal Investments
Topic: Can I have an oversized emergency savings account?
Replies: 19
Views: 2123

Re: Can I have an oversized emergency savings account?

There is no Boglehead Police, you can do what you want. A middle ground would be to invest it but to shift your allocation more conservative by a couple of points.
by aristotelian
Mon Sep 17, 2018 1:39 pm
Forum: Personal Finance (Not Investing)
Topic: how do/did you teach your kids finances/investing?
Replies: 28
Views: 2168

Re: how do/did you teach your kids finances/investing?

Just came up with a new system for this with my 9 and 11 year olds. Anticipating some negotiating and begging for Halloween costumes and knowing that they will always beg to spend more when it is Dad's money, I gave them a fixed budget of $25, allowing them to keep any of the budget that they don't ...
by aristotelian
Mon Sep 17, 2018 12:58 pm
Forum: Investing - Help with Personal Investments
Topic: Help with Establishing a Custodial Account
Replies: 6
Views: 230

Re: Help with Establishing a Custodial Account

What are "their" bank accounts? Are those minor accounts with you as joint owner? I think what you are looking for are called UTMA accounts. You should be aware that when the child reaches the age of maturity for your state, they will be able to spend the money with no strings attached. Also they ar...
by aristotelian
Mon Sep 17, 2018 9:42 am
Forum: Personal Finance (Not Investing)
Topic: Delaying SS? How Long It Will Take for It to Pay Off?
Replies: 49
Views: 4221

Re: Delaying SS? How Long It Will Take for It to Pay Off?

All calculators I tried.... Likely none of them included the effect of SS on taxation of traditional->Roth conversions. The more t->R you can do at low marginal rates, the more favorable it is to defer SS. Exactly. This may be wrong, but my back of the napkin approach is that if SS is actuarily neu...
by aristotelian
Mon Sep 17, 2018 9:26 am
Forum: Investing - Help with Personal Investments
Topic: FIRE within 5 years with high income?
Replies: 13
Views: 3767

Re: FIRE within 5 years with high income?

OP, changing your allocation in Betterment would be taxable and would also set you up with an inefficient portfolio with bonds producing taxable dividends. IMO, the best approach would be to ditch your high expense Target Date fund in the 401k and put a portion in Fidelity Bond Index up to your desi...
by aristotelian
Sat Sep 15, 2018 2:53 pm
Forum: Investing - Help with Personal Investments
Topic: CD rates--what to do?
Replies: 45
Views: 6334

Re: CD rates--what to do?

I think a CD ladder is the best approach to CDs just about anytime. I also like i-Bonds. The CD ladder is for those needing liquidity at any one point, I think the idea is to invest in such a way that you eventually get to invest into 5 year CDs out of which 1/5th come due in any given year? If you...
by aristotelian
Sat Sep 15, 2018 2:02 pm
Forum: Personal Finance (Not Investing)
Topic: The Boglehead is anti-entrepreneur?
Replies: 62
Views: 3905

Re: The Boglehead is anti-entrepreneur?

I am not "against" entrepreneurship. However, it is fundamentally different and inherently riskier than investing. These forums are focused on investing. I would have nothing to contribute to discussions of entrepreneurship.
by aristotelian
Sat Sep 15, 2018 12:19 pm
Forum: Personal Finance (Not Investing)
Topic: Beneficiary unallowed in joint taxable -move to single acct?
Replies: 10
Views: 736

Re: Beneficiary unallowed in joint taxable -move to single acct?

Not sure where you're getting that. We have a joint VG account with kids as beneficiaries.

Edit: Just checked and you are right, no beneficiaries on the VG joint account!

We also have a joint brokerage at Schwab which does have our kids as beneficiaries, so they are an option.
by aristotelian
Sat Sep 15, 2018 11:22 am
Forum: Investing - Help with Personal Investments
Topic: Employer won't Match 401k. Why?
Replies: 52
Views: 5388

Re: Employer won't Match 401k. Why?

Your employer has elected not to incentivize retirement savings. Many employers offer no 401k or 401k with no match. You should consider their overall compensation and benefits if you have offers elsewhere.