Search found 4206 matches

by aristotelian
Fri Jul 20, 2018 1:57 pm
Forum: Investing - Help with Personal Investments
Topic: Saturna/Lively HSA question
Replies: 7
Views: 364

Re: Saturna/Lively HSA question

Probably not worth it now that you have set up your account with Saturna, but I am with Lively and 100% satisfied.
by aristotelian
Fri Jul 20, 2018 11:41 am
Forum: Investing - Help with Personal Investments
Topic: Bond Ladder Managed Account
Replies: 30
Views: 1274

Re: Bond Ladder Managed Account

For the mutual fund scenario, let's say I purchase 1000 shares of a bond mutual fund at $10 per share and mutual fund pays 2.5% per year. I'm investing the same $10,000. But when I sell after 2 years, the price has dropped to $9.75 due to higher interest rates. Although I earned the same income ove...
by aristotelian
Fri Jul 20, 2018 11:12 am
Forum: Personal Finance (Not Investing)
Topic: Bond Investment vs. Paying Off Daughter's Student Loan and/or Rental Property Mortgage
Replies: 12
Views: 519

Re: Bond Investment vs. Paying Off Daughter's Student Loan and/or Rental Property Mortgage

Seems like paying off those student loans and house at the same time would be wiping out a lot of your liquidity. I might do one rather than the other. Hard to know for sure without more details about your cash flow and retirement plans.
by aristotelian
Fri Jul 20, 2018 11:05 am
Forum: Personal Finance (Not Investing)
Topic: Paying off share of children's student loans with house or stay?
Replies: 17
Views: 682

Re: Paying off share of children's student loans with house or stay?

Do you have any assets besides home equity?

Have you tried renegotiating the loans to a lower interest rate?
by aristotelian
Fri Jul 20, 2018 10:52 am
Forum: Investing - Help with Personal Investments
Topic: Bond Ladder Managed Account
Replies: 30
Views: 1274

Re: Bond Ladder Managed Account

Thanks for the feedback so far! I'm definitely not an expert, so I appreciate all the input. Here's my understanding of the difference between a bond ladder and a more traditional bond mutual fund (someone correct me if my understanding is wrong). In a bond ladder, I will hold the bond to maturity,...
by aristotelian
Fri Jul 20, 2018 8:41 am
Forum: Investing - Help with Personal Investments
Topic: Should I Dump a Pile of Money on Young Son?
Replies: 99
Views: 5463

Re: Should I Dump a Pile of Money on Young Son?

Seems like a trustworthy kid. I would be inclined to do it. I share your concern as I currently manage an inheritance given to my young kids (now 9 and 11) without my knowledge. Of course it is a good problem to have. I don't really have a choice, but ultimately I have come to terms with the possibi...
by aristotelian
Fri Jul 20, 2018 8:26 am
Forum: Investing - Help with Personal Investments
Topic: Bond Ladder Managed Account
Replies: 30
Views: 1274

Re: Bond Ladder Managed Account

A bond ladder is simply a collection of individual bonds. Over time the individual bond prices fluctuate and as they approach maturity they get closer to par value. A bond fund is simply a collection of individual bonds. Over time the individual bond prices fluctuate and as they approach maturity t...
by aristotelian
Fri Jul 20, 2018 8:13 am
Forum: Investing - Help with Personal Investments
Topic: $800,000 Windfall. Love the 3-Fund portfolio approach. Wealth Managers in contact
Replies: 28
Views: 2817

Re: $800,000 Windfall. Love the 3-Fund portfolio approach. Wealth Managers in contact

Instead of spending time or money on a "wealth manager", spend the time yourself to read Taylor Larimore's excellent 86 page book "The Bogleheads Guide to the Three Fund Portfolio". Subtitled "How a simple portfolio of three total market index funds outperforms most investors with less risk". The o...
by aristotelian
Thu Jul 19, 2018 3:02 pm
Forum: Investing - Help with Personal Investments
Topic: I'm about to inherit a single stock with a worth of just over 7 figures....
Replies: 92
Views: 6038

Re: I'm about to inherit a single stock with a worth of just over 7 figures....

One more question to ask yourself: if you got $1M cash today, would you buy this stock? If the answer is no, then you are likely holding the stock due to inertia and emotional attachment. Those are generally not good things to drive your investment strategy.
by aristotelian
Thu Jul 19, 2018 2:21 pm
Forum: Personal Consumer Issues
Topic: Possible Knob & Tube in an older home.
Replies: 29
Views: 2222

Re: Possible Knob & Tube in an older home.

I lived in a house with knob and tube wiring for over thirty years, and here I am to tell the tale. A ground being available is generally considered an excellent idea. 2 prong sockets are a little more dangerous. Those can be replaced easily with GFCI outlets. The biggest problem with K&T is insura...
by aristotelian
Thu Jul 19, 2018 1:24 pm
Forum: Investing - Help with Personal Investments
Topic: I'm about to inherit a single stock with a worth of just over 7 figures....
Replies: 92
Views: 6038

Re: I'm about to inherit a single stock with a worth of just over 7 figures....

What do you mean "buy him out"? What difference does it make if you buy the stocks from him or a broker on the open market?
by aristotelian
Thu Jul 19, 2018 9:47 am
Forum: Investing - Theory, News & General
Topic: Why Take Risk on Equity Side?
Replies: 76
Views: 4497

Re: Why Take Risk on Equity Side?

Seems to me that you are best off treating High Yield (junk) bonds as an "alternative" that are riskier than investment grade bonds and more highly correlated to stock than Treasuries, but with lower expected returns than stocks. They are not really a substitute for either stocks or bonds, but if yo...
by aristotelian
Thu Jul 19, 2018 8:51 am
Forum: Personal Finance (Not Investing)
Topic: Good to Go, yes/no?
Replies: 21
Views: 1799

Re: Good to Go, yes/no?

Absolutely good to go. Biggest issue I see is getting funds out of the pre-tax. Consider delaying SS and pension too if you are allowed. If you can't delay, that might argue for taking the lump sum so you can more carefully manage taxes on the withdrawals.
by aristotelian
Wed Jul 18, 2018 4:45 pm
Forum: Investing - Help with Personal Investments
Topic: High Crypto Allocation
Replies: 37
Views: 2851

Re: High Crypto Allocation

If your buddy can go 25%, why does he not go 50% or 60% or 100%? Doesn't he believe in his speculative abilities? Doesn't he want to maximize his return?
by aristotelian
Wed Jul 18, 2018 8:37 am
Forum: Investing - Theory, News & General
Topic: International Stocks in Taxable?
Replies: 28
Views: 1987

Re: International Stocks in Taxable?

I have 100% of my international allocation in taxable. TurboTax claims the credit for me when I import my brokerage data. I am curious about the amount of your credit. It is rather simple if less than the $300/$600 amount for single/joint filers, but bogleheads.org has several posts about Form 1116...
by aristotelian
Wed Jul 18, 2018 8:23 am
Forum: Investing - Theory, News & General
Topic: International Stocks in Taxable?
Replies: 28
Views: 1987

Re: International Stocks in Taxable?

I have 100% of my international allocation in taxable. TurboTax claims the credit for me when I import my brokerage data.
by aristotelian
Tue Jul 17, 2018 10:34 am
Forum: Investing - Help with Personal Investments
Topic: Small windfall, no debt, where to put it? [USA]
Replies: 10
Views: 630

Re: Small windfall, no debt, where to put it? [USA]

I’d still dump the car loan... 2k isn’t gonna make any difference either way. Just quit looking at it... I like your strategy towards Roth’s and HSA. Deducting after tax money is easy when you do your taxes, nothing to worry about. That leaves 36.5k to left... I’d take the next 6.5k and open a 529 ...
by aristotelian
Tue Jul 17, 2018 9:05 am
Forum: Investing - Help with Personal Investments
Topic: Why is my bond fund going up with interest rates?
Replies: 16
Views: 1510

Re: Why is my bond fund going up with interest rates?

Look at the yield curve. Intermediate and long term rates spiked briefly but have flatlined since all the talk about trade war. Only short term rates have actually gone up this year.
by aristotelian
Mon Jul 16, 2018 9:20 pm
Forum: Investing - Help with Personal Investments
Topic: Please help me untangle this mess!
Replies: 17
Views: 2479

Re: Please help me untangle this mess!

The good news is that your taxable account is fine. All you have to do is allocate your retirement accounts however you want. You should be able to reallocate everything with a few clicks. The guidelines on tax efficient fund placement are a good starting point. https://www.bogleheads.org/wiki/Tax-e...
by aristotelian
Mon Jul 16, 2018 1:54 pm
Forum: Investing - Help with Personal Investments
Topic: HSA Bank - Transfer investments from Devenir to TD Ameritrade?
Replies: 4
Views: 213

Re: HSA Bank - Transfer investments from Devenir to TD Ameritrade?

For what it's worth, Lively offers TD Ameritrade for $2.50/month (half the monthly cost of HSA Bank). If you are going to make a switch, might as well get it right and optimize.

You can definitely use TD Ameritrade with your HSA, but you have to do it through an HSA provider that uses their platform.
by aristotelian
Mon Jul 16, 2018 1:51 pm
Forum: Investing - Help with Personal Investments
Topic: Moving taxable to Vanguard with capital gains?
Replies: 11
Views: 505

Re: Moving taxable to Vanguard with capital gains?

Do any of your shares qualify for long term? It is possible that you can use SpecID or FI-FO and sell older shares first, liquidating some now while waiting for the newer shares to become qualified. I would definitely turn off dividend reinvestment and start contributing new money to your preferred ...
by aristotelian
Mon Jul 16, 2018 9:01 am
Forum: Personal Finance (Not Investing)
Topic: Duration of Sequence of Return risk for long retirements
Replies: 40
Views: 2247

Re: Duration of Sequence of Return risk for long retirements

I think the same 10 years applies. Michael Kitces: Understanding Sequence Of Return Risk – Safe Withdrawal Rates, Bear Market Crashes, And Bad Decades Apparently, the highest correlation between safe withdrawal rates and real returns is 9-10 years into retirement. It's not a major drawdown that's s...
by aristotelian
Sun Jul 15, 2018 9:00 pm
Forum: Investing - Help with Personal Investments
Topic: Realizing 85% of 401k contribution going to bonds
Replies: 21
Views: 2402

Re: Realizing 85% of 401k contribution going to bonds

Better to have Roth and taxable growing than 401k. As long as you are maintaining your overall allocation, you will just be risking more taxes on the back end if you go with stocks in the 401k. The value of your 401k is irrelevant. What matters is your overall portfolio value after tax.
by aristotelian
Sun Jul 15, 2018 10:49 am
Forum: Personal Finance (Not Investing)
Topic: 401k for 1099 income
Replies: 6
Views: 610

Re: 401k for 1099 income

You can't exceed a total of $18500 total employee contributions tax deferred for all qualified plans put together. However you could fund the employer match of a self employed 401k. It would only be approx.20% of self employment income, or $2400, so that may not be enough to be worth the effort. I ...
by aristotelian
Sun Jul 15, 2018 9:36 am
Forum: Investing - Help with Personal Investments
Topic: Inherited IRA with RMD strategy
Replies: 11
Views: 1307

Re: Inherited IRA with RMD strategy

Aside from the forced RMD's, the strategy is the same as other pretax accounts. Unless you are early in your career, you want to delay delay delay until you retire and have less taxable income. Take the minimums for now until you retire, then figure out a withdrawal plan to get the most out of the I...
by aristotelian
Sat Jul 14, 2018 6:21 pm
Forum: Investing - Theory, News & General
Topic: In defense of short-term treasuries
Replies: 112
Views: 6238

Re: In defense of short-term treasuries

With the yield curve flat and ST rates rising, they make a lot of sense right now. I have moved into ST and will move back to intermediate when the 10 year gets back above 3%.
by aristotelian
Fri Jul 13, 2018 3:17 pm
Forum: Personal Finance (Not Investing)
Topic: Taxes - Sep IRA, Solo 401 K, TSP
Replies: 15
Views: 666

Re: Taxes - Sep IRA, Solo 401 K, TSP

Just agreeing with the above, open Solo 401k, roll over SEP and Traditional IRA balances into the Solo 401k. Then you will be able to make employ-er contributions to the Solo 401k (same as you have been using your SEP) with the additional benefit of being able to do backdoor Roth.
by aristotelian
Fri Jul 13, 2018 2:10 pm
Forum: Investing - Theory, News & General
Topic: Does tilting towards shorter-term bonds make sense?
Replies: 15
Views: 1731

Re: Does tilting towards shorter-term bonds make sense?

Intuitively, it doesn't make sense to me to get locked into 10 or 20 years for essentially zero premium. I just bought some ST Treasury.
by aristotelian
Fri Jul 13, 2018 1:43 pm
Forum: Investing - Theory, News & General
Topic: New York Times article: Hedge funds underperformed so far this year
Replies: 3
Views: 357

Re: Hedge Funds Again Lagging

https://www.nytimes.com/2018/07/12/business/hedge-funds.html The results for the first six months are now in — and they shatter the myth of hedge funds thriving in turbulent markets. Does this year count as a turbulent market? There was one bump after a run up and then it's been pretty much flat. I...
by aristotelian
Thu Jul 12, 2018 11:12 pm
Forum: Personal Finance (Not Investing)
Topic: Shifting from Intermediate to Short-term Bonds
Replies: 11
Views: 1597

Re: Shifting from Intermediate to Short-term Bonds

I am weighting ST right now while the yield curve is flat.
by aristotelian
Thu Jul 12, 2018 6:28 am
Forum: Investing - Help with Personal Investments
Topic: Inherited IRA slowly funneled into Roth IRA
Replies: 9
Views: 799

Re: Inherited IRA slowly funneled into Roth IRA

Yes, funding IRA is a good idea. The "source" of the funds is irrelevant, as long as withdrawing from your Inherited IRA doesn't put you in a higher tax bracket. You might follow the posting guidelines to get more specific advice.
by aristotelian
Thu Jul 12, 2018 12:08 am
Forum: Investing - Help with Personal Investments
Topic: Why is capital one's 18 month CD paying less than their 12 month CD and so on?
Replies: 6
Views: 1181

Re: Why is capital one's 18 month CD paying less than their 12 month CD and so on?

Interest rates are increasing. Short term rates are spiking but long term rates haven't caught up. Apparently a lot of money out there thinks that stocks are not a sure thing to return 3%, even over 20 years, so rates for long bonds are still low. I agree, short term rates are appealing right now if...
by aristotelian
Mon Jul 09, 2018 6:43 pm
Forum: Investing - Theory, News & General
Topic: Fundrise vs. Vanguard REIT ETF
Replies: 10
Views: 1109

Re: Fundrise vs. Vanguard REIT ETF

Should Fundrise be compared to a REIT and then compare performance? Should fundrise be compared to holding real estate (property ownership-landlord-rental income)? I don't think anyone knows. Therein lies the problem. I would not put money in anything that is not well understood and/or does not hav...
by aristotelian
Mon Jul 09, 2018 4:06 pm
Forum: Investing - Theory, News & General
Topic: Wellesley alternative for taxable acct.?
Replies: 25
Views: 2857

Re: Wellesley alternative for taxable acct.?

There are no alternatives that will give you what ever it is you are looking for in wellesley. If you want wellesley then you have to decide if the tax situation is worth it. If not then pick something else. I think OP is asking what is the "something else"? OP could consider something like 40% Van...
by aristotelian
Mon Jul 09, 2018 6:21 am
Forum: Investing - Theory, News & General
Topic: Article: Rich kids are counting on inheritance to pay for retirement
Replies: 31
Views: 4501

Re: Article: Rich kids are counting on inheritance to pay for retirement

It doesn't necessarily mean they are entitled brats. The way the question is worded, it could mean that they don't see a path to a high paying stable job to save on their own and pay off student loan debt. Also the article is specific to wealthy Gen Z, so they probably will be getting inheritances. ...
by aristotelian
Sun Jul 08, 2018 2:52 pm
Forum: Investing - Help with Personal Investments
Topic: Socially Responsible Funds (I want to be socially irresponsible)
Replies: 34
Views: 1819

Re: Socially Responsible Funds (I want to be socially irresponsible)

Can you agree with something more than 100%, because if you can, I want to with this comment. Sadly, people who think like your wife can’t be persuaded, it’s all about face value with them. I’m not picking on her, it’s just the core principle of that ideology. It’s like electric cars......it feels ...
by aristotelian
Sun Jul 08, 2018 6:36 am
Forum: Investing - Help with Personal Investments
Topic: Socially Responsible Funds (I want to be socially irresponsible)
Replies: 34
Views: 1819

Re: Socially Responsible Funds (I want to be socially irresponsible)

VFSTX is fine. Just let her do socially responsible in her accounts. Overweight an Energy ETF in yours if you want. Better than forcing her into anything she's not going to be comfortable with.
by aristotelian
Sat Jul 07, 2018 5:27 pm
Forum: Personal Consumer Issues
Topic: Which advanced tech is necessary in cars?
Replies: 86
Views: 4323

Re: Which advanced tech is necessary in cars?

Jack FFR1846 wrote:
Sat Jul 07, 2018 8:22 am
Necessary? I'd say none of that. Those are all "wants".

My top safety picks:

Seat belts.
air bags.

/thread
I would add Anti Lock Brakes although I am not sure any of the above count as "advanced".
by aristotelian
Sat Jul 07, 2018 1:54 pm
Forum: Investing - Help with Personal Investments
Topic: TIAA Annuities and FIRE
Replies: 8
Views: 733

Re: TIAA Annuities and FIRE

Appears to be a really good plan with a nice employer contribution. If you are looking to retire early, you almost certainly want to max the supplemental plan (likely $18,500) as well as taking the full employer contribution. Understand that what TIAA calls "annuity" includes typical annuities (refe...
by aristotelian
Sat Jul 07, 2018 1:05 pm
Forum: Personal Finance (Not Investing)
Topic: What rate of return are you using for retirement projections?
Replies: 99
Views: 8900

Re: What rate of return are you using for retirement projections?

I don't really project returns. I know the 4% rules works for all historical scenarios so I figure 3.5% will be failsafe. I don't need more specific projections than that.
by aristotelian
Fri Jul 06, 2018 9:05 am
Forum: Investing - Theory, News & General
Topic: Active Management Justification
Replies: 33
Views: 1828

Re: Active Management Justification

Check out the Morningstar Active/Passive Barometer. Sure, it is not hard to find funds that have outperformed, even for long periods. As an investor, you have no idea which will return to the mean and which won't. Statistically, as a whole active funds are likely to underperform and theoretically, t...
by aristotelian
Fri Jul 06, 2018 8:27 am
Forum: Personal Finance (Not Investing)
Topic: Teaching local communities how to save/invest
Replies: 12
Views: 911

Re: Teaching local communities how to save/invest

I have had similar thoughts but one worry is that we have a litigious society. If you ever gave incorrect advice or encouraged a bunch of people to invest right before a market crash, you would be a walking target for a lawsuit. I would only want to do it if I was employed by a school or firm that w...
by aristotelian
Fri Jul 06, 2018 6:25 am
Forum: Investing - Help with Personal Investments
Topic: Can you help me figure out how much emergency fund $ I REALLY need?
Replies: 38
Views: 2839

Re: Can you help me figure out how much emergency fund $ I REALLY need?

I'd say 10k is fine assuming that you have a bond allocation and a pool of investment funds that is relatively liquid in case you ever need more than that. I would not feel comfortable with $10k and everything else tied up in 401k's. For example, I have $20k in I Bonds and $50k in Muni bonds that I ...
by aristotelian
Thu Jul 05, 2018 6:47 am
Forum: Personal Finance (Not Investing)
Topic: paying off mortgage while I have high income?
Replies: 11
Views: 1876

Re: paying off mortgage while I have high income?

It's really a six of one vs half dozen of the other proposition. It comes down to preference and judgment. My approach was to split the difference and put about half of extra cash to the mortgage and half to investments. Your age and risk tolerance could be factors. With CD and Treasury yields in th...
by aristotelian
Thu Jul 05, 2018 5:54 am
Forum: Personal Consumer Issues
Topic: Tipping at non sit down places
Replies: 94
Views: 7800

Re: Tipping at non sit down places

I will leave my loose change if there is a tip jar. I figure anyone working a service job can use the money more than me.
by aristotelian
Wed Jul 04, 2018 4:59 pm
Forum: Personal Consumer Issues
Topic: hybrid or plug-in electric car
Replies: 70
Views: 3858

Re: hybrid or plug-in electric car

Would the LEAF drivers recommend a last generation model if the commute was stretched to 25 miles each way (50 miles total)? I know the rated range is 80. Is that rating solid, even after a couple years? I am very interesting in getting one as they can be had in the $10K range, which seems like a gr...
by aristotelian
Wed Jul 04, 2018 4:34 pm
Forum: Investing - Help with Personal Investments
Topic: $3k investment Vanguard funds Roth IRA which one of these should I start with
Replies: 7
Views: 621

Re: $3k investment Vanguard funds Roth IRA which one of these should I start with

Consider using the ETF version of your preferred fund. Then you can get the same expense ratio as Admiral Shares without the $10K minimum. In your Roth, you can always sell the ETF and switch to the mutual fund when you reach $10K without a taxable transaction.
by aristotelian
Wed Jul 04, 2018 12:37 pm
Forum: Investing - Help with Personal Investments
Topic: Anxiety Spending Money
Replies: 52
Views: 5222

Re: Anxiety Spending Money

Seems like you know what you're doing financially. You are living within your means and have good habits. If you are stressed and anxious about money, that is just as much a mental health issue. Consider getting some help and talking to a professional. You are in the prime of your life. You should b...
by aristotelian
Wed Jul 04, 2018 11:39 am
Forum: Personal Finance (Not Investing)
Topic: Can I finance a new home abroad (Carribean)???
Replies: 53
Views: 4253

Re: Can I finance a new home abroad (Carribean)???

In April you told us you had $700k sitting in a bank account. No need to borrow money, then. I am not comfortable purchasing a home cash and much less in another country. Got too little ones at home a large amount of my liquidity to that amount of risk I don’t think is a smart decision. You think y...
by aristotelian
Wed Jul 04, 2018 11:34 am
Forum: Investing - Help with Personal Investments
Topic: Few Questions About Early Retirement
Replies: 13
Views: 1955

Re: Few Questions About Early Retirement

OP, most of the simulations show that in order to stay ahead of inflation over a long timeframe, you generally need a more aggressive allocation. If you go as conservative as 40% stock, you will need a withdrawal rate closer to 3% rather than 4%. If you can sustain that low withdrawal rate, you shou...