Search found 251 matches

by billthecat
Sat Sep 22, 2018 1:44 pm
Forum: Investing - Theory, News & General
Topic: Why do Schwab fund only pay distributions once a year?
Replies: 7
Views: 1061

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

Any idea why a lot of Schwab mutual funds and ETFs only pay once a year? Any advantage or disadvantage over quarterly distributions? I personally prefer the 1/4 for better averaging over time. Just curious as to why they set it up this way. Maybe the fund is able to float the dividends it receives ...
by billthecat
Wed Sep 19, 2018 8:33 am
Forum: Personal Consumer Issues
Topic: What is your single most expensive mistake?
Replies: 252
Views: 17548

Re: What is your single most expensive mistake?

stoptothink wrote:
Tue Sep 18, 2018 4:51 pm
Getting involved in real estate investing/development just a few years before the crash - loss of 6 figures
Me too! Lost about $500,000.
by billthecat
Mon Sep 17, 2018 6:38 pm
Forum: Investing - Help with Personal Investments
Topic: California tax free fund or an AMT tax free fund?
Replies: 9
Views: 753

Re: California tax free fund or an AMT tax free fund?

Are you still subject to AMT after the changes in tax law? Many who were aren't. If you still need it here's one: https://www.morningstar.com/funds/xnas/drcax/quote.html Interesting. I will have more than 70k in taxable income (the threshold for single filers) but a lot of deductions have been elim...
by billthecat
Mon Sep 17, 2018 6:11 pm
Forum: Investing - Help with Personal Investments
Topic: California tax free fund or an AMT tax free fund?
Replies: 9
Views: 753

California tax free fund or an AMT tax free fund?

Since I’m in California and am subject to AMT, should I put money market funds in a California tax free fund like SWKXX or an AMT tax free fund like SWWXX?

Is there no fund that is both California and AMT tax free? I have to choose one or the other?
by billthecat
Sun Sep 16, 2018 10:29 am
Forum: Investing - Theory, News & General
Topic: CDs role in Fixed income part of portfolio
Replies: 31
Views: 2712

Re: CDs role in Fixed income part of portfolio

CDs have no role in my portfolio. I use Vanguard money market funds for short-term savings, and bond funds for everything else. That’s what I was thinking. MM for the cash portion of my total assets (5%), total bond market for the investment portion of fixed income (35%). I may max out the annual I...
by billthecat
Fri Sep 14, 2018 3:36 pm
Forum: Investing - Theory, News & General
Topic: Age in Bonds - Still Recommended?
Replies: 142
Views: 10249

Re: Age in Bonds - Still Recommended?

Slowly I've adopted the idea that "if you've already won the game why continue to play"? (Bernstein) Also "a retiree should not hold anything near his risk tolerance". (Ferri). +1 52y.o. retired 50/35/15 A hourly fee based financial planner ran us through a bunch of questions to get an idea of risk...
by billthecat
Fri Sep 14, 2018 11:41 am
Forum: Investing - Theory, News & General
Topic: Age in Bonds - Still Recommended?
Replies: 142
Views: 10249

Re: Age in Bonds - Still Recommended?

Here's a chart of bond and cash allocation comparing Schwab's glide path vs age vs age-10 vs age-20. https://i.imgur.com/EQnEYtc.jpg Generally, it seems like target date funds follow an S curve, more or less. That is, accumulating bonds/cash less than age-10, then quickly ramping up, and tapering of...
by billthecat
Wed Sep 12, 2018 2:46 pm
Forum: Investing - Help with Personal Investments
Topic: Fidelity, Schwab, or Vanguard
Replies: 61
Views: 4109

Re: Fidelity, Schwab, or Vanguard

All are good. Vanguard has no office. But their Index fund has the lowest fee Schwab has office, they have a few low cost index funds Fidelity is similar to Schawb, But I like they have reward credit card. So I have them all. I thought Schwab's were slightly cheaper than Vanguard. SCHB has an ER of...
by billthecat
Tue Sep 11, 2018 6:38 pm
Forum: Investing - Help with Personal Investments
Topic: money market fund at Schwab, for a Californian subject to AMT?
Replies: 0
Views: 134

money market fund at Schwab, for a Californian subject to AMT?

Any recommendations for a money market fund at Schwab, for a Californian subject to AMT?
by billthecat
Tue Sep 04, 2018 9:22 pm
Forum: Investing - Help with Personal Investments
Topic: Max 401k and live off savings?
Replies: 9
Views: 1175

Re: Max 401k and live off savings?

Hi! I've been researching an interesting situation that I haven't heard much about. I haven't been contributing much to my 401k this year, and I'm thinking about doing what I can to meet the maximum for 2018. I realize it's a little late in the year to make this decision. Perhaps this is what "bett...
by billthecat
Tue Sep 04, 2018 3:30 pm
Forum: Investing - Theory, News & General
Topic: Impact of early retirement on previously set glide path
Replies: 17
Views: 2221

Re: Impact of early retirement on previously set glide path

Here's what I did , and a couple of years later I answered some questions about it . For the record, I think an age-based asset allocation will be far more practical for most investors. PJW Correlating it with wealth multiple is interesting, because as your wealth increases your need to take risks ...
by billthecat
Tue Sep 04, 2018 12:25 am
Forum: Personal Consumer Issues
Topic: Word document format/numbering question
Replies: 6
Views: 591

Re: Word document format/numbering question

I have a large Word document, formatted with paragraph numbers and footnote numbers, and I want to create a condensed version where I delete certain paragraphs (and automatically, all footnotes associated with those paragraphs)...but...I want to preserve the original paragraph numbers and original ...
by billthecat
Mon Sep 03, 2018 3:47 pm
Forum: Investing - Theory, News & General
Topic: Retirees who went before me: Does a glidepath really work
Replies: 24
Views: 3159

Re: Retirees who went before me: Does a glidepath really work

I feel for you. I don't mind the uncertainty of outcome but the uncertainty of strategy is driving me bonkers. Increasing equity glide path ? Decreasing equity glide path ? Decreasing equity until 65,* then decreasing at a slower rate ? Bond tent with admitted uncertainty on the shape of the tent ? ...
by billthecat
Mon Sep 03, 2018 8:17 am
Forum: Investing - Theory, News & General
Topic: Impact of early retirement on previously set glide path
Replies: 17
Views: 2221

Re: Impact of early retirement on previously set glide path

Making it to early retirement usually means investing much more per year than the retire at 65 plans. The schedule of what needs to happen when gets compressed. Going too heavy on bonds too soon could add years of work (are you still retiring early then?). You would also want to be at the same equi...
by billthecat
Sun Sep 02, 2018 3:14 pm
Forum: Investing - Help with Personal Investments
Topic: Delay in deposits by empower for 401k?
Replies: 13
Views: 659

Re: Delay in deposits by empower for 401k?

Mine is same day I get paid. Direct deposit of my paycheck in the morning, deposit and purchase at Empower shows up at the end of the day a few hours after market close.
by billthecat
Sun Sep 02, 2018 12:34 pm
Forum: Investing - Theory, News & General
Topic: Impact of early retirement on previously set glide path
Replies: 17
Views: 2221

Re: Impact of early retirement on previously set glide path

I am not a fan of target date funds as they're costly, don't take your own AA into account, rebalance constantly in your later years even if you wouldn't do so yourself, and often yield unnecessary taxable income if you hold them in taxable accounts. So I'd get out of them and look to manage to a y...
by billthecat
Sun Sep 02, 2018 11:48 am
Forum: Investing - Theory, News & General
Topic: Impact of early retirement on previously set glide path
Replies: 17
Views: 2221

Impact of early retirement on previously set glide path

Target date funds and "years until retirement" all seem geared toward working until 65 (they actually say so in footnotes). If you were on that track and were comfortable with a target date fund's glide path but then decided to retire 10-15 years earlier, would you stay on the same glide path or shi...
by billthecat
Sun Sep 02, 2018 11:04 am
Forum: Personal Finance (Not Investing)
Topic: Rental properties - Sell at a loss or hold on?
Replies: 14
Views: 1530

Re: Rental properties - Sell at a loss or hold on?

remember if you sell you have to recapture your depreciation. That can be hard as you won't have cash from the sale but have to pay taxes on the depreciation recapture. If i sold i might stagger the sales into 2 different tax years But he’s been operating at a loss so probably has significant PALCO...
by billthecat
Tue Aug 28, 2018 1:30 pm
Forum: Investing - Help with Personal Investments
Topic: How to Begin with 1M
Replies: 117
Views: 14608

Re: How to Begin with 1M

MotoTrojan wrote:
Tue Aug 28, 2018 10:55 am
Ah CA. High state tax but I doubt your income/spending will justify the complexity of CA tax exempt bonds.
Buying VCADX seems pretty straight forward.
by billthecat
Sun Aug 26, 2018 10:19 am
Forum: Personal Finance (Not Investing)
Topic: LLC for one rental property?
Replies: 28
Views: 2290

Re: LLC for one rental property?

So, after buying a new house we are emabarking on the journey of renting our old townhome. I’ve run the numbers and it makes sense financially given current rents. That said our real estate attorney at closing told us we should form an LLC to put the property into. Is this really needed? Can’t suff...
by billthecat
Sat Aug 25, 2018 9:56 pm
Forum: Investing - Theory, News & General
Topic: Which bond index fund best in taxable acct?
Replies: 22
Views: 2279

Re: Which bond index fund best in taxable acct?

It took me a while to do this, but I would put my allocation of bonds completely in your tax deferred accounts and only have stocks in your taxable account. TSM willthrow off about 2% qualified dividends every year and an inconsequential amount of other income. This site taught me this and it is de...
by billthecat
Fri Aug 24, 2018 10:28 pm
Forum: Investing - Theory, News & General
Topic: Which bond index fund best in taxable acct?
Replies: 22
Views: 2279

Re: Which bond index fund best in taxable acct?

Hi, I am planning to hold a 2 fund portfolio in my taxable Vanguard account. I am 38 yr old with about 25 years till retirement in the 32% tax bracket living in CA. I am thinking of this allocation. A: VTSAX VG Total Stock Market Admiral Share (80%) and VWIUX Vanguard Intermediate-Term Tax-Exempt F...
by billthecat
Thu Aug 23, 2018 11:44 pm
Forum: Investing - Theory, News & General
Topic: Bonds in Taxable
Replies: 164
Views: 17613

Re: Bonds in Taxable

Not that I know of, and if there was it would need more inputs than you've listed, like whether you plan to leave most of your taxable account to charity, to heirs, or spend it. Certainly. But to your example - spend it! Spending it is a factor that makes bonds in taxable a little more favorable. H...
by billthecat
Thu Aug 16, 2018 8:30 am
Forum: Investing - Help with Personal Investments
Topic: What am I missing about bonds...
Replies: 31
Views: 4060

Re: What am I missing about bonds...

But one needs to compare specific holdings to do so (calculate tax-adjusted performance). I was speaking generally. The three fund portfolio specifies low cost, low tax, and efficient tax placement (see Wiki). Total Stock Market (TSM) for example has low expenses, low turnover, no capital gains (at...
by billthecat
Wed Aug 15, 2018 10:12 pm
Forum: Investing - Help with Personal Investments
Topic: What am I missing about bonds...
Replies: 31
Views: 4060

Re: What am I missing about bonds...

The issue is fairly simple: Given a choice of holding an investment like bonds (or bond funds), that makes regular, monthly coupon payments that are taxable at one's marginal rate--remember, these are not dividends, they are bond income, taxed at one's state and federal rates--should one hold such ...
by billthecat
Tue Aug 14, 2018 6:23 pm
Forum: Investing - Help with Personal Investments
Topic: What am I missing about bonds...
Replies: 31
Views: 4060

Re: What am I missing about bonds...

WCI's target audience is those paying 35% or more in federal tax. Can you elaborate? Can you show the math, similar to what WCI did, that would show that bonds should not be in taxable, given a tax rate, soy, lower than 35%? WCI assumed a 33% marginal tax rate (15% for LTCG and dividends). It would...
by billthecat
Tue Aug 14, 2018 3:00 pm
Forum: Investing - Help with Personal Investments
Topic: What am I missing about bonds...
Replies: 31
Views: 4060

Re: What am I missing about bonds...

In any event, your zero tax rate scenario may not be typical. But the scenario of WCI is also not typical ... some might say it only applies to the 1%. I don't know what is or isn't typical (why I put "may"...) but it would be handy if there were a calculator, to plug in the details about one's par...
by billthecat
Tue Aug 14, 2018 2:58 pm
Forum: Investing - Help with Personal Investments
Topic: What am I missing about bonds...
Replies: 31
Views: 4060

Re: What am I missing about bonds...

Whatever you are implying suggests that you did not understand what WCI wrote. OK well, let me elaborate so you can understand what I'm implying: conventional wisdom is that bonds should not be in taxable accounts because of the taxation of distributions but WCI spells out the argument as to why bo...
by billthecat
Tue Aug 14, 2018 2:51 pm
Forum: Investing - Help with Personal Investments
Topic: What am I missing about bonds...
Replies: 31
Views: 4060

Re: What am I missing about bonds...

OK, I can see how paying zero taxes on the stock dividends could lead to an advantage to having your stock in taxable. How is your tax rate zero for your taxable holdings? Total is below deductions? No, income is low. People who have low income generally do not pay income taxes. Haha, so snarky. In...
by billthecat
Tue Aug 14, 2018 2:47 pm
Forum: Investing - Help with Personal Investments
Topic: What am I missing about bonds...
Replies: 31
Views: 4060

Re: What am I missing about bonds...

Let me give a real-world example of why WCI's clickbait of "bonds in taxable" does not work for my single-earner family: We pay 0% tax on long-term capital gains and 0% tax on qualified dividend income. If I don't want to pay income taxes, then tax-efficient equity funds go in taxable. Bond funds i...
by billthecat
Tue Aug 14, 2018 2:40 pm
Forum: Investing - Theory, News & General
Topic: Bonds in Taxable
Replies: 164
Views: 17613

Re: Bonds in Taxable

That's an excellent point. One also must keep this in mind when reading articles and blogs. For instance, the target audience for my blog is high-income professionals. If you are in the 15% bracket, you may not be my intended audience of any given article. For instance, I just got done writing an a...
by billthecat
Tue Aug 14, 2018 12:11 pm
Forum: Investing - Help with Personal Investments
Topic: What am I missing about bonds...
Replies: 31
Views: 4060

Re: What am I missing about bonds...

That said: Wellington is a good fund, I just would not hold it in a taxable account because it holds about 33% bonds, which result in taxable distributions. Everyone keeps saying this - except White Coat Investor. https://www.whitecoatinvestor.com/tag/bonds-in-taxable/ Whatever you are implying sug...
by billthecat
Mon Aug 13, 2018 10:34 pm
Forum: Investing - Help with Personal Investments
Topic: What am I missing about bonds...
Replies: 31
Views: 4060

Re: What am I missing about bonds...

That said: Wellington is a good fund, I just would not hold it in a taxable account because it holds about 33% bonds, which result in taxable distributions. Everyone keeps saying this - except White Coat Investor. https://www.whitecoatinvestor.com/tag/bonds-in-taxable/ Whatever you are implying sug...
by billthecat
Mon Aug 13, 2018 6:59 pm
Forum: Investing - Help with Personal Investments
Topic: What am I missing about bonds...
Replies: 31
Views: 4060

Re: What am I missing about bonds...

Admiral wrote:
Mon Aug 13, 2018 11:20 am
That said: Wellington is a good fund, I just would not hold it in a taxable account because it holds about 33% bonds, which result in taxable distributions.
Everyone keeps saying this - except White Coat Investor. https://www.whitecoatinvestor.com/tag/bonds-in-taxable/
by billthecat
Sat Aug 11, 2018 10:20 am
Forum: Investing - Theory, News & General
Topic: Fixed income holdings: mostly CDs, with a little bond index funds?
Replies: 3
Views: 591

Re: Fixed income holdings: mostly CDs, with a little bond index funds?

I'm seeing an SEC yield for SCHZ at 3.13% so quite a bit better than what you quoted. Were you by chance looking at past distributions? I think your plan is reasonable enough--many use only CDs/cash for their fixed income. And a little bit of liquidity never hurts. Thanks. Yes, I googled schz and t...
by billthecat
Fri Aug 10, 2018 9:34 pm
Forum: Investing - Theory, News & General
Topic: Fixed income holdings: mostly CDs, with a little bond index funds?
Replies: 3
Views: 591

Fixed income holdings: mostly CDs, with a little bond index funds?

I was pondering how to implement my fixed income allocation, and perusing Bankrate.com for CD rates. 5 year CDs are over 3% (3.37% even for 100K+). Meanwhile, bond funds like SCHZ (Schwab's bond index fund) are yielding 2.18% 3.13%. Bond funds have the advantage of liquidity but they also can go dow...
by billthecat
Thu Aug 09, 2018 11:29 am
Forum: Investing - Help with Personal Investments
Topic: Best 529 plan for California, for self
Replies: 5
Views: 407

Best 529 plan for California, for self

For a Californian who wants a 529 plan for himself, to cover some education costs in retirement to keep the mind active, what would be the best 529 plan? There are no tax benefits in California so everything can be considered. The California plan itself doesn't seem too bad - for an individual index...
by billthecat
Mon Aug 06, 2018 4:27 pm
Forum: Investing - Theory, News & General
Topic: "Age in Bonds" fails almost everyone
Replies: 217
Views: 13730

Re: "Age in Bonds" fails almost everyone

Help me understand, how did you get from the target date to age? Meaning, target date could be 62 years old, 65 years old, 70 years old or many other ages. What am I missing? Or are you assuming target date = 65 years old? In any event, the S curve seems to fall to: Until 40, 10% bonds. 40-65, incr...
by billthecat
Mon Aug 06, 2018 3:56 pm
Forum: Investing - Theory, News & General
Topic: "Age in Bonds" fails almost everyone
Replies: 217
Views: 13730

Re: "Age in Bonds" fails almost everyone

Help me understand, how did you get from the target date to age? Meaning, target date could be 62 years old, 65 years old, 70 years old or many other ages. What am I missing? Or are you assuming target date = 65 years old? In any event, the S curve seems to fall to: Until 40, 10% bonds. 40-65, incre...
by billthecat
Sun Aug 05, 2018 10:21 pm
Forum: Investing - Help with Personal Investments
Topic: Front load 401k?
Replies: 23
Views: 2081

Re: Front load 401k?

TravelGeek wrote:
Sun Aug 05, 2018 3:40 pm
if I were to quit or laid off, I would have maximized my contributions.
Exactly - the future is uncertain, so I try to cram it in as quickly as possible.
by billthecat
Sun Aug 05, 2018 9:45 am
Forum: Personal Consumer Issues
Topic: Best MacBook Value
Replies: 40
Views: 3259

Re: Best MacBook Value

Small Law Survivor wrote:
Sun Aug 05, 2018 9:32 am
Any advice of where I can stash that 60MB iTunes file would be appreciated.
Why not use iCloud music library, and delete the local copy of the songs (keeping it available in iCloud)?
by billthecat
Sat Aug 04, 2018 11:07 pm
Forum: Investing - Help with Personal Investments
Topic: Front load 401k?
Replies: 23
Views: 2081

Re: Front load 401k?

I cannot front load for two reasons: 1. My max contribution allowed per paycheck is 25% 2. I need to contribute at least 6% for the 26 paychecks to receive the full employer match for the year. But you could front load the excess beyond the 6% (plus save a bit for later to account for an estimated ...
by billthecat
Sat Aug 04, 2018 11:34 am
Forum: Personal Consumer Issues
Topic: Travel Laptop Computer Recommendation
Replies: 12
Views: 955

Re: Travel Laptop Computer Recommendation

If you are just browsing, emailing, and doing a few financial transactions, why can’t your phone do that? Granted, a larger screen makes the experience better when browsing the web, but if it’s just for your traveling you might be able to do everything you need to do on your phone. And yes I am incl...
by billthecat
Wed Aug 01, 2018 11:09 am
Forum: Personal Finance (Not Investing)
Topic: Hitting Milestone Early, and the Fiancee Response!
Replies: 20
Views: 4147

Re: Hitting Milestone Early, and the Fiancee Response!

In 2014 we started taking fiances and investment more seriously. We ended that year with 19k invested. Last week we hit 103k invested, with our goal for this whole year being to get to 100k. When I told my fiancee about this milestone the response I got was a monotone, disinterested sounding "Yay."...
by billthecat
Mon Jul 30, 2018 9:47 pm
Forum: Investing - Theory, News & General
Topic: Bonds in Taxable
Replies: 164
Views: 17613

Re: Bonds in Taxable

People should try to understand the concepts behind this discussion and apply it to their own situation. There is just too much chance of "bias of the familiar" in any broad statements that relate to the tax code. That's an excellent point. One also must keep this in mind when reading articles and ...
by billthecat
Sun Jul 29, 2018 10:30 am
Forum: Investing - Theory, News & General
Topic: Bonds in Taxable
Replies: 164
Views: 17613

Re: Bonds in Taxable

People should try to understand the concepts behind this discussion and apply it to their own situation. There is just too much chance of "bias of the familiar" in any broad statements that relate to the tax code. That's an excellent point. One also must keep this in mind when reading articles and ...
by billthecat
Sat Jul 07, 2018 4:26 am
Forum: Personal Consumer Issues
Topic: Global Wallet/Organizer
Replies: 4
Views: 471

Re: Global Wallet/Organizer

Fat-Tailed Contagion wrote:
Sat Jul 07, 2018 1:55 am
Hi Guys,

I am in the market for a large wallet/organizer for many credit cards, gift cards, etc.

I was looking at Tumi but was wondering what you suggest?

Thank you!

Fatty
Me too! What about the Big Skinny?
by billthecat
Sun Jul 01, 2018 2:40 am
Forum: Investing - Help with Personal Investments
Topic: What % of your equity is int’l?
Replies: 141
Views: 8365

Re: What % of your equity is int’l?

Why are you asking? The reasons for holding a specific percentage of intl seem less clear to me than the straightforward logic of risk appetite for setting total stock and fixed income percentages in a portfolio . The answers you get here will be all over the place because it is relative to risk to...
by billthecat
Mon Jun 25, 2018 5:38 pm
Forum: Investing - Help with Personal Investments
Topic: So much angst
Replies: 52
Views: 6290

Re: So much angst

The .05% was in reference to the 2030 fund. Here is your exact quote: "The 2025 fund is .08, the 2030 fund (which is a different account, and which is smaller, and which has different fund options) is .05." mpnret, you're confused. The quote you cite came from billthecat (the OP) referring to the f...