Search found 4188 matches

by aristotelian
Mon Jul 16, 2018 9:20 pm
Forum: Investing - Help with Personal Investments
Topic: Please help me untangle this mess!
Replies: 10
Views: 995

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: 179

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: 446

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: 29
Views: 1131

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: 18
Views: 1610

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: 582

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: 1240

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: 65
Views: 3230

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: 13
Views: 496

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: 1653

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: 345

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: 1570

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: 784

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: 1171

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: 1085

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: 2824

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: 4475

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: 1801

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: 1801

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: 4201

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: 724

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: 8576

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: 1807

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: 907

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: 2829

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: 1867

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: 7728

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: 3778

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: 618

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: 5189

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: 4230

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: 1949

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...
by aristotelian
Wed Jul 04, 2018 7:33 am
Forum: Personal Consumer Issues
Topic: Question about Cutting Cable
Replies: 18
Views: 1772

Re: Question about Cutting Cable

We have internet through ATT for $30/month. We then switch between Netflix and Hulu depending on what we want to watch.
by aristotelian
Wed Jul 04, 2018 7:29 am
Forum: Personal Finance (Not Investing)
Topic: Health Care in "Early" Retirement
Replies: 50
Views: 4714

Re: Health Care in "Early" Retirement

Variation on #5: medical tourism to Costa Rica or Eastern Europe. Can be used as a backup option to reduce the political risk of ACA.
by aristotelian
Tue Jul 03, 2018 10:56 pm
Forum: Investing - Help with Personal Investments
Topic: Need Advice on one of My Investments Please
Replies: 13
Views: 820

Re: Need Advice on one of My Investments Please

If you wouldn't buy it today with cash, why would you hold it when you could sell it and have cash?
by aristotelian
Tue Jul 03, 2018 5:34 pm
Forum: Investing - Help with Personal Investments
Topic: bonds or bond funds?
Replies: 39
Views: 2250

Re: bonds or bond funds?

Assuming the interest rates rise as per scheduled if you target dated that you will receive a 1% increase in yield or slightly more, you'll get it a year or 2 earlier, and without a capital loss to do so, when the new bonds are bought at the target date. Risk is information risk. Duration is a pass...
by aristotelian
Tue Jul 03, 2018 2:07 pm
Forum: Investing - Help with Personal Investments
Topic: bonds or bond funds?
Replies: 39
Views: 2250

Re: bonds or bond funds?

Why do you think individual bonds can't lose value but buckets of individual bonds can? My understanding is that if you hold them to maturity, you get back the principal plus interest. Correct. But the bond fund will also hold an index of individual bonds to maturity. It never loses money on any in...
by aristotelian
Tue Jul 03, 2018 1:40 pm
Forum: Investing - Help with Personal Investments
Topic: Expected returns for 80/20 stock bond for next 10 years.
Replies: 169
Views: 12004

Re: Expected returns for 80/20 stock bond for next 10 years.

masonstone wrote:
Mon Jul 02, 2018 8:44 pm
Rick Ferri wrote:
Mon Jul 02, 2018 8:22 pm
A realistic return number for an 80/20 allocation is 5% nominal and 3% real. Sorry I was not clear in that.
This is not accurate according to historical returns. Realistic nominal returns are between 7-10
10% is definitely not realistic for a portfolio with 20% bonds.
by aristotelian
Tue Jul 03, 2018 11:22 am
Forum: Personal Finance (Not Investing)
Topic: Will I ever be able to itemize?
Replies: 64
Views: 4208

Re: Will I ever be able to itemize?

You are not being screwed. You are being allowed to deduct an extra $4k that you wouldn't otherwise qualify for.
by aristotelian
Tue Jul 03, 2018 7:37 am
Forum: Personal Finance (Not Investing)
Topic: Closing Thursday but new house wall damaged by seller’s mover
Replies: 16
Views: 2354

Re: Closing Thursday but new house wall damaged by seller’s mover

You have no leverage and it is minor damage. I would let this one go.
by aristotelian
Tue Jul 03, 2018 6:16 am
Forum: Investing - Help with Personal Investments
Topic: Is now a good time to buy my way into a proper bond alloc?
Replies: 10
Views: 589

Re: Is now a good time to buy my way into a proper bond alloc?

You should have bought a month or two back, EDIT which you did. The 10 year yield has actually gone down since then despite the "rising interest rate environment". No idea what the future holds. If there is a stock crash due to full blown trade war, you will be glad you have bonds. Would need more i...
by aristotelian
Tue Jul 03, 2018 6:13 am
Forum: Investing - Theory, News & General
Topic: Does the ROTH IRA force us to rebalance in January?
Replies: 24
Views: 1406

Re: Does the ROTH IRA force us to rebalance in January?

Yes, if you do a lump sum, you are going from X/Y/Z plus $5500 cash to X/Y/Z.
by aristotelian
Mon Jul 02, 2018 11:21 pm
Forum: Investing - Help with Personal Investments
Topic: bonds or bond funds?
Replies: 39
Views: 2250

Re: bonds or bond funds?

Why do you think individual bonds can't lose value but buckets of individual bonds can?
by aristotelian
Mon Jul 02, 2018 9:54 pm
Forum: Personal Consumer Issues
Topic: Repair Vehicle or Move On?
Replies: 22
Views: 1493

Re: Repair Vehicle or Move On?

I think your mechanic is being generous.
by aristotelian
Mon Jul 02, 2018 9:52 pm
Forum: Personal Consumer Issues
Topic: How do I fix my heating bill?
Replies: 73
Views: 3291

Re: How do I fix my heating bill?

We added blown in insulation to our attic and exterior walls. Cut our bill in half (although we have gas) and paid for itself within two years. I think we do about 65 during the winter.
by aristotelian
Mon Jul 02, 2018 5:11 pm
Forum: Investing - Theory, News & General
Topic: Vanguard to offer non-Vanguard ETFs commission-free
Replies: 120
Views: 8992

Re: Vanguard to offer non-Vanguard ETFs commission-free

One more benefit, for ETF buyers who buy on small lots or don't like leaving cash on the table, we will be able to buy funds with cheaper shares. Schwab has some good ones in the $25-$35 range. Most VG funds are around $100. Lower share price means higher effective bid/ask spread, though.
by aristotelian
Mon Jul 02, 2018 2:50 pm
Forum: Personal Consumer Issues
Topic: Retiring in Michigan (Ann Arbor)
Replies: 65
Views: 4608

Re: Retiring in Michigan (Ann Arbor)

ouch. i guess one should retire ONLY where they worked? I live in a college town smaller but similar to Ann Arbor. People who grew up there or lived there a long time regard it as precious and see gentrification as a threat to their way of life. They aren't wrong. Of course, neither are you or OP f...
by aristotelian
Mon Jul 02, 2018 12:22 pm
Forum: Investing - Theory, News & General
Topic: Vanguard to offer non-Vanguard ETFs commission-free
Replies: 120
Views: 8992

Re: Vanguard to offer non-Vanguard ETFs commission-free

I am trying to imagine the emergency meetings being conducted this morning at Fidelity, Schwab, Merrill, and TD Ameritrade. I'm sure it is no accident that Vanguard dropped this press release at the beginning of a popular vacation week when their competitors are operating at half staff in the execu...
by aristotelian
Mon Jul 02, 2018 10:41 am
Forum: Investing - Theory, News & General
Topic: Tariffs/Inflation/Rates
Replies: 24
Views: 1701

Re: Tariffs/Inflation/Rates

Every time there is news about tariffs/trade war, interest rates seem to go down with money moving in to bonds. No idea if that will be a long term trend, but 10 Year Treasury is down to 2.85% after breaking 3% a few months ago.
by aristotelian
Mon Jul 02, 2018 8:58 am
Forum: Investing - Theory, News & General
Topic: Vanguard to offer non-Vanguard ETFs commission-free
Replies: 120
Views: 8992

Re: Vanguard to offer non-Vanguard ETFs commission-free

Nice. Should make for even more options for tax loss harvesting.