Search found 190 matches

by billthecat
Sat Jun 16, 2018 10:21 pm
Forum: Investing - Help with Personal Investments
Topic: Lost and confused (bonds in taxable or not?)
Replies: 2
Views: 398

Re: Lost and confused (bonds in taxable or not?)

I won’t comment on the bonds (curious others thoughts) but I believe I’ve read that Total US vs. Total Int is a wash. Yes Int has the foreign tax credit, but it also has a larger dividend yield (currently) which offsets with a slight tax-drag. I avoid this debate by being 100% equity but I’m curiou...
by billthecat
Sat Jun 16, 2018 9:58 pm
Forum: Investing - Theory, News & General
Topic: Flaw in Logic? CD ladder instead of bond funds
Replies: 63
Views: 4432

Re: Flaw in Logic? CD ladder instead of bond funds

You obviously can't make a big shift into them all at once ($10K/year/person), but if you have a spouse, you could acquire $40K exposure across the next 7 months. Isn't it really $15k/year/person, if you game it right? That is, $10k electronic and $5k paper via a tax refund? And gaming it by withho...
by billthecat
Sat Jun 16, 2018 8:26 pm
Forum: Investing - Help with Personal Investments
Topic: Lost and confused (bonds in taxable or not?)
Replies: 2
Views: 398

Lost and confused (bonds in taxable or not?)

My head is spinning from reading https://www.whitecoatinvestor.com/asset-location-bonds-go-in-taxable/ https://www.bogleheads.org/forum/viewtopic.php?t=197035 and of course https://www.bogleheads.org/wiki/Tax-efficient_fund_placement https://www.bogleheads.org/wiki/Tax-adjusted_asset_allocation The ...
by billthecat
Sat Jun 16, 2018 3:05 pm
Forum: Investing - Theory, News & General
Topic: Flaw in Logic? CD ladder instead of bond funds
Replies: 63
Views: 4432

Re: Flaw in Logic? CD ladder instead of bond funds

see the bigger picture You obviously can't make a big shift into them all at once ($10K/year/person), but if you have a spouse, you could acquire $40K exposure across the next 7 months. Isn't it really $15k/year/person, if you game it right? That is, $10k electronic and $5k paper via a tax refund? ...
by billthecat
Fri Jun 15, 2018 2:02 pm
Forum: Investing - Help with Personal Investments
Topic: Converting real estate to stocks/bonds: pay off mortgages in the meantime or invest?
Replies: 2
Views: 226

Converting real estate to stocks/bonds: pay off mortgages in the meantime or invest?

I'm in the process of liquidating rental properties, which will happen over the next 12 months. What I'm wondering is whether I should pay off the mortgages in the meantime, or invest in stocks/bonds and continue to hold the loans. My asset allocation for financial assets is 60/40. About $1M. Plus a...
by billthecat
Fri Jun 08, 2018 11:10 am
Forum: Investing - Help with Personal Investments
Topic: SCHB vs. SWTSX
Replies: 8
Views: 1375

Re: SCHB vs. SWTSX

SCHB is the Schwab ETF for US Broad Market and SWTSX is the Schwab mutual fund for US Total Market, so I think the mutual fund has a little more exposure to small caps, but from a market cap perspective I think they're similar. Both have an ER of 0.03%. If held in a Roth, the tax implications of ET...
by billthecat
Wed Jun 06, 2018 11:22 am
Forum: Investing - Theory, News & General
Topic: Schwab Intelligent Portfolio vs. Schwab Target Fund
Replies: 71
Views: 6931

Re: Schwab Intelligent Portfolio vs. Schwab Target Fund

Hello, and thx for information. Can you brief explain what's involved in unwinding SIP? Well, you have two choices: you can unwrap the funds, taking them out of your SIP account and moving them to a regular account, or liquidate the funds within SIP and transfer the proceeds to a regular account. T...
by billthecat
Wed Jun 06, 2018 10:55 am
Forum: Investing - Help with Personal Investments
Topic: Why not divide up holdings based on time horizon?
Replies: 10
Views: 1050

Re: Why not divide up holdings based on time horizon?

I'm aware of the analysis at https://www.bogleheads.org/wiki/ETFs_vs_mutual_funds but which do you prefer? Do you do one in the taxable account and the other in the tax-advtanged accounts? I'm thinking ETF in taxable, mutual fund in tax advantaged. I don't have a preference. I don't think it matter...
by billthecat
Tue Jun 05, 2018 8:58 pm
Forum: Investing - Theory, News & General
Topic: Schwab Intelligent Portfolio vs. Schwab Target Fund
Replies: 71
Views: 6931

Re: Schwab Intelligent Portfolio vs. Schwab Target Fund

Hello, and thx for information. Can you brief explain what's involved in unwinding SIP? Well, you have two choices: you can unwrap the funds, taking them out of your SIP account and moving them to a regular account, or liquidate the funds within SIP and transfer the proceeds to a regular account. T...
by billthecat
Sun Jun 03, 2018 6:51 pm
Forum: Personal Finance (Not Investing)
Topic: How much money do you want to retire?
Replies: 433
Views: 50431

Re: How much money do you want to retire?

AlphaLess wrote:
Sun Jun 03, 2018 6:36 pm
billthecat wrote:
Sun Jun 03, 2018 4:54 pm
$2,742,857.14
Not $2.71828182845904MM?
Or $3.14159265358979323846MM?
student wrote:
Sun Jun 03, 2018 6:48 pm
AlphaLess wrote:
Sun Jun 03, 2018 6:36 pm
billthecat wrote:
Sun Jun 03, 2018 4:54 pm
$2,742,857.14
Not $2.71828182845904MM?
Or $3.14159265358979323846MM?
Or maybe 1.61803398875MM.

Nope
by billthecat
Sun Jun 03, 2018 11:46 am
Forum: Investing - Theory, News & General
Topic: To be or not to be complex, that is the question
Replies: 146
Views: 11643

Re: To be or not to be complex, that is the question

So...what is the benefit of holding some international stock, instead of all US stock?

Bogle seems to say have zero. Vanguard seems to say have 40% (of stock) in international (up from 20% then 30%).

Edit: this is the benefit
by billthecat
Sun Jun 03, 2018 11:43 am
Forum: Investing - Theory, News & General
Topic: Schwab Intelligent Portfolio vs. Schwab Target Fund
Replies: 71
Views: 6931

Re: Schwab Intelligent Portfolio vs. Schwab Target Fund

Hello, and thx for information. Can you brief explain what's involved in unwinding SIP? Well, you have two choices: you can unwrap the funds, taking them out of your SIP account and moving them to a regular account, or liquidate the funds within SIP and transfer the proceeds to a regular account. T...
by billthecat
Sat Jun 02, 2018 3:56 pm
Forum: Investing - Help with Personal Investments
Topic: Picking bonds for my HSA
Replies: 10
Views: 978

Re: Picking bonds for my HSA

What do you think of Vanguard Treasury Money Market Investor (VUSXX) for Californians? It's fine for a cash holding, if it returns more than the bank-account option. Thus, if you save one year's deductible for likely current-year expenses, that could be in the Treasury fund. However, for longer-ter...
by billthecat
Sat Jun 02, 2018 3:52 pm
Forum: Investing - Help with Personal Investments
Topic: Spreading Bond Safety to Taxable [Portfolio help]
Replies: 14
Views: 1351

Re: Spreading Bond Safety to Taxable [Portfolio help]

If I keep all my bonds in my 401k for tax efficiency, won't that mean I'm unevenly spreading my risk between tax-advantaged and taxable accounts? Ie: If the market crashes, I lose my ability to pull out any of my money because all my safe investments are locked away in my retirement accounts. If an...
by billthecat
Fri Jun 01, 2018 11:13 pm
Forum: Investing - Help with Personal Investments
Topic: Picking bonds for my HSA
Replies: 10
Views: 978

Re: Picking bonds for my HSA

Given your handle, I would assume you live in California, which does not recognize HSAs. Any investment in an HSA is taxed in CA unless it is exempt from CA tax. Therefore, it is best to hold Treasury bonds in your HSA, but the only Treasury option you have will cost you much more in expenses than ...
by billthecat
Fri Jun 01, 2018 10:15 am
Forum: Investing - Theory, News & General
Topic: Schwab Intelligent Portfolio vs. Schwab Target Fund
Replies: 71
Views: 6931

Re: Schwab Intelligent Portfolio vs. Schwab Target Fund

I use Schwab Intelligent Portfolio for my taxable account, and a target date index fund for my tax-advantaged account. Hello, billthecat - Could you please explain how is the Schwab Int Port better for taxable accounts? Thx, LH Tax loss harvesting. That said, I’m not actually sure how the tax loss ...
by billthecat
Fri Jun 01, 2018 10:09 am
Forum: Investing - Help with Personal Investments
Topic: Picking bonds for my HSA
Replies: 10
Views: 978

Re: Picking bonds for my HSA

Given your handle, I would assume you live in California, which does not recognize HSAs. Any investment in an HSA is taxed in CA unless it is exempt from CA tax. Therefore, it is best to hold Treasury bonds in your HSA, but the only Treasury option you have will cost you much more in expenses than ...
by billthecat
Wed May 30, 2018 10:03 am
Forum: Investing - Help with Personal Investments
Topic: Why not divide up holdings based on time horizon?
Replies: 10
Views: 1050

Re: Why not divide up holdings based on time horizon?

mhc wrote:
Wed May 30, 2018 9:32 am
If you have your equity funds in a taxable account and the market tanks, you can Tax Loss Harvest (TLH). TLH is a good thing.
I have a lot of experience with TLH. :oops:
by billthecat
Wed May 30, 2018 12:28 am
Forum: Investing - Help with Personal Investments
Topic: Why not divide up holdings based on time horizon?
Replies: 10
Views: 1050

Re: Why not divide up holdings based on time horizon?

I'm aware of the analysis at https://www.bogleheads.org/wiki/ETFs_vs_mutual_funds but which do you prefer? Do you do one in the taxable account and the other in the tax-advtanged accounts? I'm thinking ETF in taxable, mutual fund in tax advantaged. I don't have a preference. I don't think it matter...
by billthecat
Tue May 29, 2018 11:41 pm
Forum: Investing - Help with Personal Investments
Topic: Opening a taxable...any reason for bonds?
Replies: 21
Views: 2403

Re: Opening a taxable...any reason for bonds?

But if stocks tank 40% while your bonds dip 10%, wouldn't you rather draw from the bonds? Sure? Here's a 60/40 portfolio with the losses you mentioned and a $10k withdrawal from bonds only: Tax Stocks: 50k => 30k => 20k IRA Stocks: 10k => 6k => 26k IRA Bonds: 40k => 36k => 26k That still leaves you...
by billthecat
Tue May 29, 2018 11:18 pm
Forum: Investing - Help with Personal Investments
Topic: Why not divide up holdings based on time horizon?
Replies: 10
Views: 1050

Re: Why not divide up holdings based on time horizon?

Imagine you had bonds in your taxable and are able to just sell them directly. There is no capital loss for tax purposes. Now imagine you have stocks in taxable and need to do what I outlined. You generate a wash sale but who cares? It just means there is no capital loss for tax purposes...exactly ...
by billthecat
Tue May 29, 2018 10:49 pm
Forum: Investing - Help with Personal Investments
Topic: Why not divide up holdings based on time horizon?
Replies: 10
Views: 1050

Re: Why not divide up holdings based on time horizon?

Most people don't do this because there is no point. You can achieve the same effect by selling something in a taxable account and buying an offsetting amount in a tax-deferred account. (And vice versa.) Take an extreme case: My taxable account is 100% stocks and my tax-deferred account is 100% bon...
by billthecat
Tue May 29, 2018 10:23 pm
Forum: Investing - Help with Personal Investments
Topic: Why not divide up holdings based on time horizon?
Replies: 10
Views: 1050

Why not divide up holdings based on time horizon?

I'm struggling with the tax efficiency guidance which, of course, is detailed at https://www.bogleheads.org/wiki/Tax-efficient_fund_placement. It seems to make perfect sense if you're going to save, and then tap into your funds after 59 1/2, because you can draw from any account without penalty. Of ...
by billthecat
Tue May 29, 2018 9:25 pm
Forum: Investing - Help with Personal Investments
Topic: Opening a taxable...any reason for bonds?
Replies: 21
Views: 2403

Re: Opening a taxable...any reason for bonds?

Does any of this change if you plan to retire early, and will draw upon the taxable account 10 years before accessing tax-advantaged accounts? No, I don't think so, and I also plan to retire early. I consider all of my accounts as one allocation. If I needed to sell stock funds in my taxable accoun...
by billthecat
Mon May 28, 2018 4:39 pm
Forum: Investing - Help with Personal Investments
Topic: Opening a taxable...any reason for bonds?
Replies: 21
Views: 2403

Re: Opening a taxable...any reason for bonds?

None at all. By doing so, you're following the tax-efficient fund placement recommendation almost to a T. No. All your fixed income can fit in 401k. Once you run out of space then see if munis pay more for your bracket. No, as long as you have your bond allocation elsewhere which is more tax effici...
by billthecat
Thu May 24, 2018 4:57 pm
Forum: Investing - Theory, News & General
Topic: Fear vs. reality. Don't worry. Be happy. [Outliving your retirement savings]
Replies: 41
Views: 4630

Re: Fear vs. reality. Don't worry. Be happy.

Then there those who have four parents due to divorce and remarriage and siblings, all of whom are counting on the one person to pay for everything.
by billthecat
Tue May 22, 2018 11:07 pm
Forum: Investing - Help with Personal Investments
Topic: Schwab Intelligent Portfolio
Replies: 18
Views: 1580

Re: Schwab Intelligent Portfolio

So I opened up an account with Schwab Intelligent Portfolio. I'm not sure if I'm liking it so far. I like that there are no fees other than the ETF fees themselves, but even with the most aggressive portfolio, the mandatory cash reserve is 6%. Also, it's diversified in about 20 ETF's. Is that a goo...
by billthecat
Sun May 20, 2018 11:05 pm
Forum: Personal Consumer Issues
Topic: Re: done with Gmail
Replies: 114
Views: 12199

Re: done with Gmail

ThriftyPhD wrote:
Sun May 20, 2018 10:57 pm
If your system is crashing (I assume Windows?)...
LOL
by billthecat
Fri May 18, 2018 3:24 pm
Forum: Investing - Help with Personal Investments
Topic: Investing in HSA Help
Replies: 4
Views: 637

Re: Investing in HSA Help

Is there any logic to investing your HSA in a healthcare fund? Thinking that the returns would approximate the change in healthcare prices?
by billthecat
Wed May 16, 2018 12:09 pm
Forum: Forum Issues and Administration
Topic: The front page is ugly
Replies: 140
Views: 11567

Re: The front page is wondeful

The purpose of the site is to provide an area for discussion of investing and personal finance. I can't see how that purpose would be served by adding needless decoration or annoying animation. Well written. This site is beautiful in content, so that makes it beautiful to the eye. The front page is...
by billthecat
Sun May 13, 2018 9:43 pm
Forum: Personal Finance (Not Investing)
Topic: Quest for the perfect online savings bank
Replies: 18
Views: 2351

Re: Quest for the perfect online savings bank

...I should be able to link the account to my brokerage and checking accounts... The simple solution is just keep cash in your brokerage account. Who needs an extra account for a couple of tenths of a percent on a few thousand bucks? 10k? More? No need to keep too much in cash . Prime Money Market ...
by billthecat
Wed May 02, 2018 9:05 pm
Forum: Investing - Help with Personal Investments
Topic: How do you know when you have "won the game"?
Replies: 142
Views: 15637

Re: How do you know when you have "won the game"?

You know when confetti falls from the sky and Regis Philbin pops out saying "Congratulations, you're a million-aire!" To give you a more helpful answer, there is no sure thing. I quit my high-paying job at 36 with no kids, and we traveled for a while and I played a lot of golf. Then after taking tw...
by billthecat
Sat Apr 21, 2018 11:55 pm
Forum: Personal Finance (Not Investing)
Topic: Charles Schwab Checking + Brokerage Account
Replies: 95
Views: 22253

Re: Charles Schwab Checking + Brokerage Account

the default overdraft protection is they sell stuff in your brokerage account to cover the check. that won't apply to you. i called customer service and turned overdraft protection off cuz thats just a stupid policy to have. Yes, that's pretty stupid if so. I thought it was actually margin on the s...
by billthecat
Wed Apr 18, 2018 11:59 pm
Forum: Investing - Theory, News & General
Topic: Trinity Study updated to 2018
Replies: 156
Views: 16229

Re: Trinity Study updated to 2018

A disservice is done every time the Trinity study is equated to a retirement income withdrawal strategy. As the latter, it would have to be the worst method. The thought of setting a withdrawal rate, then never looking again at actual outcome, portfolio balance, inflation, etc. is reckless. What is...
by billthecat
Wed Apr 18, 2018 11:56 pm
Forum: Personal Finance (Not Investing)
Topic: Once retired, tools to determine available spend?
Replies: 18
Views: 2002

Re: Once retired, tools to determine available spend?

Have you looked at Optimal Retirement Planner - Extended Parameter Form , or Optimal Retirement Planner - Home and Essential Parameter Form as described in Journal A 3-Step Procedure for Computing Sustainable Retirement Savings Withdrawals ? Thanks - those still look like planning tools ("do I have...
by billthecat
Wed Apr 18, 2018 11:53 pm
Forum: Personal Finance (Not Investing)
Topic: Once retired, tools to determine available spend?
Replies: 18
Views: 2002

Re: Once retired, tools to determine available spend?

But once in retirement, is there a tool to determine how much you can spend over the next twelve months, based on your balances at that time? I'm not aware of any tool. I think most probably feel it doesn't warrant a tool. But I'm not sure I see what the problem with the VPW spreadsheet is? What do...
by billthecat
Wed Apr 18, 2018 2:15 pm
Forum: Personal Finance (Not Investing)
Topic: Once retired, tools to determine available spend?
Replies: 18
Views: 2002

Once retired, tools to determine available spend?

Hopefully this is in the right ssection. There are tools readily available (cfiresim.com, etc.) to essentially check if you have enough by backtesting spending strategies against past performance. But once in retirement, is there a tool to determine how much you can spend over the next twelve months...
by billthecat
Fri Apr 13, 2018 4:46 pm
Forum: Personal Finance (Not Investing)
Topic: Any advice for 1st time landlord
Replies: 42
Views: 3514

Re: Any advice for 1st time landlord

Review Schedule E. That's where you file all your rental related income and expenses. Most of the inputs are self explanatory. The only one that requires calculations is depreciation. It's the value of the house (not the land) when you put it into rental service then divided by 27.5. You will use t...
by billthecat
Sun Apr 08, 2018 8:49 pm
Forum: Personal Consumer Issues
Topic: Finance only laptop? Can I use an old one?
Replies: 25
Views: 1743

Re: Finance only laptop? Can I use an old one?

I think there are a couple of better solutions to your problem. 1. Run a "live CD" version of Linux off a CD or other write-protected storage (like an SD card). Just boot off that when you want to. Here's a huge list from which to choose: https://livecdlist.com. But here's the shorter list of "secur...
by billthecat
Sun Apr 08, 2018 1:11 pm
Forum: Personal Finance (Not Investing)
Topic: Recordkeeping system for retirees
Replies: 25
Views: 2775

Re: Recordkeeping system for retirees

The best / safest solution is probably what you've mentioned - storing everything on a local hard-drive as PDFs and replicating across back-up devices. I've considered doing exactly that for years in my quest for "less paper" but have never managed to find the time to get THAT organized..I consider...
by billthecat
Sat Apr 07, 2018 10:41 am
Forum: Personal Finance (Not Investing)
Topic: Any advice for 1st time landlord
Replies: 42
Views: 3514

Re: Any advice for 1st time landlord

Review Schedule E. That's where you file all your rental related income and expenses. Most of the inputs are self explanatory. The only one that requires calculations is depreciation. It's the value of the house (not the land) when you put it into rental service then divided by 27.5. You will use t...
by billthecat
Fri Apr 06, 2018 9:26 pm
Forum: Personal Finance (Not Investing)
Topic: Any advice for 1st time landlord
Replies: 42
Views: 3514

Re: Any advice for 1st time landlord

I'm renting out my old house this month. Thought I'd give it a shot for a year or two to see if I have the stomach for dealing with the headaches. I've pretty much figured out all the basic stuff, but I'm sort of struggling with the accounting part, especially the idea of deducting depreciation and...
by billthecat
Fri Apr 06, 2018 2:29 pm
Forum: Personal Finance (Not Investing)
Topic: Any advice for 1st time landlord
Replies: 42
Views: 3514

Re: Any advice for 1st time landlord

Since depreciation is recaptured, and taxed, and also lowers your basis, which increases your capital gain, which is taxed, do landlords end up getting taxed twice? Sure, depreciation would have contributed to your expenses all along (or accumulated and taken at the end), so let's assume that's a w...
by billthecat
Fri Apr 06, 2018 2:25 pm
Forum: Investing - Theory, News & General
Topic: Article on "Buckets" at Morningstar. How Does The Bucket Approach To Retirement Allocation apply to you?
Replies: 23
Views: 2569

Re: Article on "Buckets" at Morningstar. How Does The Bucket Approach To Retirement Allocation apply to you?

My buckets are a little different in that I use buckets for investment purposes only, not spending. So for example, I have a taxable bucket which is more conservatively invested, and a tax-deferred bucket which is more aggressively invested. But, I look at the whole for purposes of asset allocation....
by billthecat
Fri Apr 06, 2018 9:56 am
Forum: Personal Finance (Not Investing)
Topic: Any advice for 1st time landlord
Replies: 42
Views: 3514

Re: Any advice for 1st time landlord

I'm renting out my old house this month. Thought I'd give it a shot for a year or two to see if I have the stomach for dealing with the headaches. I've pretty much figured out all the basic stuff, but I'm sort of struggling with the accounting part, especially the idea of deducting depreciation and...
by billthecat
Tue Apr 03, 2018 10:55 am
Forum: Personal Finance (Not Investing)
Topic: No will. What happens to my accounts if I die?
Replies: 34
Views: 2845

Re: No will. What happens to my accounts if I die?

For inheritance, you can just designate beneficiaries for your accounts. That will transfer assets to them without the need for a will. For other stuff, of course (like real estate), you'd want a will. If you die without a will or designated beneficiaries for accounts then your assets would transfer...
by billthecat
Sun Apr 01, 2018 11:16 pm
Forum: Investing - Help with Personal Investments
Topic: Avoid tax free bonds if planning to leave state at retirement?
Replies: 13
Views: 926

Re: Avoid tax free bonds if planning to leave state at retirement?

Perhaps I misunderstand the issue but I thought that the reason you choose muni bonds is their interest/dividends thrown off each year are fed and state tax free if issued from your state. But if you have capital gains those are still taxable. So of this is true there is no reason to switch away fr...
by billthecat
Sun Apr 01, 2018 11:14 pm
Forum: Investing - Help with Personal Investments
Topic: Avoid tax free bonds if planning to leave state at retirement?
Replies: 13
Views: 926

Re: Avoid tax free bonds if planning to leave state at retirement?

Muni’s still makes sense for people in a high tax bracket. Do they let you pick another state specific fund group? The benefit may just be slightly lower. Not sure I follow - are you tinking that I would switch to a different state fund group if/when I move to another state? Wouldn't that have the ...
by billthecat
Sun Apr 01, 2018 9:46 pm
Forum: Investing - Help with Personal Investments
Topic: Avoid tax free bonds if planning to leave state at retirement?
Replies: 13
Views: 926

Re: Avoid tax free bonds if planning to leave state at retirement?

Muni’s still makes sense for people in a high tax bracket. Do they let you pick another state specific fund group? The benefit may just be slightly lower. Not sure I follow - are you tinking that I would switch to a different state fund group if/when I move to another state? Wouldn't that have the ...