Search found 4578 matches

by aristotelian
Tue Sep 25, 2018 2:09 pm
Forum: Investing - Help with Personal Investments
Topic: Non-spousal Inherited IRA
Replies: 13
Views: 951

Re: Non-spousal Inherited IRA

I am inclined to agree that the simplicity of the lump sum most likely outweighs the tax benefit of lifetime RMD's. However, I would definitely go through with RMD's if a lump sum would make a difference in her marginal tax rate. If lump sum would push her from 12% to 22%, that is a pretty big diffe...
by aristotelian
Tue Sep 25, 2018 11:51 am
Forum: Investing - Help with Personal Investments
Topic: Exchanging within taxable acct; is this a good idea?
Replies: 12
Views: 777

Re: Exchanging within taxable acct; is this a good idea?

Between the two, about $24k in gains, split evenly. At 15%, roughly $3,600 total. Already tax-loss harvested $900 this year, so $2,700 or so. Not expecting a change in tax brackets until quit working. Financial Independence at least 6-7 years away; retirement then or more likely, after. I'd be incl...
by aristotelian
Tue Sep 25, 2018 11:28 am
Forum: Investing - Theory, News & General
Topic: Inflation and withdrawal from portfolio
Replies: 23
Views: 827

Re: Inflation and withdrawal from portfolio

What is his goal? Is he trying to avoid running out of money, or is he hoping that his portfolio will grow in perpetuity? Most retirement models assume for the purposes of not running out of money that you can safely withdraw 4% of your initial portfolio balance (adjusted for inflation). For the pur...
by aristotelian
Tue Sep 25, 2018 10:38 am
Forum: Investing - Help with Personal Investments
Topic: Exchanging within taxable acct; is this a good idea?
Replies: 12
Views: 777

Re: Exchanging within taxable acct; is this a good idea?

How much is the tax hit? Do you expect any changes in your tax bracket in the near future (e.g. retirement)? Explorer is the only one with a really substantial expense ratio that would be worth cashing in significant taxable gains. I would be inclined to keep the others unless I could harvest the ga...
by aristotelian
Tue Sep 25, 2018 7:44 am
Forum: Investing - Theory, News & General
Topic: DIYers Taking a Toll
Replies: 48
Views: 5190

Re: DIYers Taking a Toll

He warned me that anyone can do well with index investing in a bull market but when/if it changes indexers will get crushed. I am sorry your son lost his job, but I don't see why indexers would get crushed any more than active managers. Indexers can hold bonds. Also, what happens from year to year ...
by aristotelian
Mon Sep 24, 2018 7:56 pm
Forum: Personal Consumer Issues
Topic: Vacation without saving adequately?
Replies: 54
Views: 3355

Re: Vacation without saving adequately?

Do you feel you haven't saved enough because you haven't met some arbitrary goal, or because you will literally be cash flow negative (aside from your retirement accounts)? I don't know, I hate to have negative cash flow. Maybe if you can come up with a plan to tighten the belt next year, but then y...
by aristotelian
Mon Sep 24, 2018 7:41 pm
Forum: Investing - Help with Personal Investments
Topic: Help with moving from an Advisor to a self managed account
Replies: 9
Views: 822

Re: Help with moving from an Advisor to a self managed account

Wow, that is one ugly portfolio. The IRA and 401l fortunately will be simple to fix since the transactions will not be taxable. The taxable account will take some work but folks here can walk you through it. One thing I will suggest is to only inform your advisor as a courtesy *after* you have filed...
by aristotelian
Mon Sep 24, 2018 2:13 pm
Forum: Personal Finance (Not Investing)
Topic: Fed up with health insurance situation
Replies: 113
Views: 6173

Re: Fed up with health insurance situation

Thread locking in 3...2... Without getting into politics, I will say that I checked my year end pay stub last year and noticed a line for my employer health coverage contribution. We only pay $100/mo for our plan because the employer is picking up something like $15K. If your company can't shoulder ...
by aristotelian
Mon Sep 24, 2018 1:39 pm
Forum: Investing - Help with Personal Investments
Topic: What to do with a windfall
Replies: 10
Views: 1427

Re: What to do with a windfall

Agree with keeping it liquid and using for upcoming expenses as needed. Also don’t suggest you splurge on an expense you wouldn’t otherwise have, I.e the boat. I would go even further and say to consider not using the windfall for the wedding and stick to your budget before the windfall. You never ...
by aristotelian
Mon Sep 24, 2018 10:37 am
Forum: Investing - Help with Personal Investments
Topic: Tax Loss Harvesting and my HSA
Replies: 2
Views: 211

Re: Tax Loss Harvesting and my HSA

Does Saturna allow you to turn off dividend reinvestment? How often are you contributing?
by aristotelian
Mon Sep 24, 2018 9:50 am
Forum: Investing - Help with Personal Investments
Topic: Review my IPS
Replies: 9
Views: 909

Re: Review my IPS

Regarding goal #2, most financial independence calculations are based on expenses, not salary. If you currently make $120K, after tax and 50% savings rate, you are spending perhaps $50-$60k. I currently spend $35,889.29/yr. However, a number of things make me believe that this will change and incre...
by aristotelian
Mon Sep 24, 2018 9:48 am
Forum: Investing - Theory, News & General
Topic: 401k: Why not only after-tax?
Replies: 37
Views: 3967

Re: 401k: Why not only after-tax?

OP, read these threads before determining in advance that your retirement tax rate is going to be higher. https://www.bogleheads.org/forum/viewtopic.php?t=87471 https://www.gocurrycracker.com/roth-sucks/ https://www.gocurrycracker.com/the-go-curry-cracker-2013-taxes/ Usually retirement taxable incom...
by aristotelian
Mon Sep 24, 2018 8:58 am
Forum: Investing - Help with Personal Investments
Topic: Review my IPS
Replies: 9
Views: 909

Re: Review my IPS

Regarding goal #2, most financial independence calculations are based on expenses, not salary. If you currently make $120K, after tax and 50% savings rate, you are spending perhaps $50-$60k.
by aristotelian
Mon Sep 24, 2018 8:11 am
Forum: Investing - Theory, News & General
Topic: Would David Swensen's advice be different if he wrote his book in 2017?
Replies: 9
Views: 1841

Re: Would David Swensen's advice be different if he wrote his book in 2017?

Bonds are for defense, not offense. If you hold short to intermediate term, there is not nearly as much downside risk. You get return from stocks.
by aristotelian
Sun Sep 23, 2018 11:16 pm
Forum: Investing - Help with Personal Investments
Topic: Emotional Investor - I'm a mess and need help!
Replies: 83
Views: 5913

Re: Emotional Investor - I'm a mess and need help!

OP, have you seen the Seinfeld episode where George decides to do the exact opposite of his every instinct? That is what you need to do with your portfolio.
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: 1191

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: 920

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: 920

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: 1271

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: 1065

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: 120
Views: 5622

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: 2210

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: 726

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: 6843

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: 1997

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: 1093

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: 212

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: 7547

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: 1783

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: 3304

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: 43
Views: 2582

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: 6
Views: 489

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: 1839

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: 462

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: 7547

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: 7547

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: 3398

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: 2148

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: 4693

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: 83
Views: 7188

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: 1720

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: 2411

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: 4450

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: 3083

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: 4450

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: 4450

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: 4450

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: 3989

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: 1839

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: 729

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...