Search found 226 matches

by billthecat
Tue Aug 14, 2018 6:23 pm
Forum: Investing - Help with Personal Investments
Topic: What am I missing about bonds...
Replies: 27
Views: 3019

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: 27
Views: 3019

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: 27
Views: 3019

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: 27
Views: 3019

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: 27
Views: 3019

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: 162
Views: 16310

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: 27
Views: 3019

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: 27
Views: 3019

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: 27
Views: 3019

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: 542

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: 542

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: 334

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: 12677

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: 12677

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: 1927

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: 3061

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: 1927

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: 906

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: 4027

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: 162
Views: 16310

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: 162
Views: 16310

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: 458

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: 8141

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: 6118

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...
by billthecat
Sun Jun 24, 2018 5:53 pm
Forum: Investing - Help with Personal Investments
Topic: So much angst
Replies: 52
Views: 6118

Re: So much angst

billthecat, My point is this. Those questions and answers are more important than the AA and/or target date funds. If you are satisfied with those answers, any target date funds with AA between 70/30 and 30/70 will work. If not, your AA would not matter anyhow. For my own personal planning: A) I as...
by billthecat
Sun Jun 24, 2018 5:04 pm
Forum: Investing - Help with Personal Investments
Topic: So much angst
Replies: 52
Views: 6118

Re: So much angst

billthecat, << The only way to maximize preparation for every unknown would be to work until the day you die. No thanks. >> Yes, that is true. But, there is a middle ground. There is a difference between assuming everything goes well. 1A) Fully employed between now (49) and 67 years old -> 18 years...
by billthecat
Sun Jun 24, 2018 5:03 pm
Forum: Investing - Help with Personal Investments
Topic: So much angst
Replies: 52
Views: 6118

Re: So much angst

knpstr wrote:
Sun Jun 24, 2018 3:15 pm
billthecat wrote:
Sun Jun 24, 2018 11:23 am
...
Has anyone here just thrown up their hands in disgust and gone simple, simple, simple?
I'm 100% Total Stock Market. So that is pretty simple, simple, simple.
Yes, yes, yes it is! But maybe that makes sense because of your age, risk tolerance, and other such factors.
by billthecat
Sun Jun 24, 2018 4:53 pm
Forum: Investing - Help with Personal Investments
Topic: So much angst
Replies: 52
Views: 6118

Re: So much angst

I've done the modeling on cfiresim, Schwab.com, firecalc, my 401K, and everything says I won't run out of money spending double what I spend today. billthecat, 1) Your modeling is only as good as your assumptions. You are 49 years old now. Are you going to be fully employed until 62/65/67 years old...
by billthecat
Sun Jun 24, 2018 1:49 pm
Forum: Investing - Help with Personal Investments
Topic: So much angst
Replies: 52
Views: 6118

Re: So much angst

Billthecat BTW love your handle. Your approach is very reasonable. All those other issues are fine tuning. People can get really wrapped around the axle on fine points here. They are interesting to debate but don't make much difference in the end. ... Does that make sense? Has anyone here just thro...
by billthecat
Sun Jun 24, 2018 1:40 pm
Forum: Investing - Help with Personal Investments
Topic: So much angst
Replies: 52
Views: 6118

Re: So much angst

... As to tax efficiency of bonds, yes, conventional wisdom is to have it in your tax advantaged accounts. But WCI goes through how that isn't really the case when you compare tax-adjusted returns. You want your highest tax-adjusted returns in the tax-advantaged accounts. In the end, it depends on ...
by billthecat
Sun Jun 24, 2018 1:10 pm
Forum: Investing - Help with Personal Investments
Topic: So much angst
Replies: 52
Views: 6118

Re: So much angst

I'm tired of the angst around this. I'm certainly not alone with the angst. There's topic after topic covering, Why include international? Why include bonds? Are CDs a good alternative to bonds? Should I invest or pay down debt? DIY? Robo? But the fees or minimum cash! Target date? Do bonds go in t...
by billthecat
Sun Jun 24, 2018 1:00 pm
Forum: Investing - Help with Personal Investments
Topic: So much angst
Replies: 52
Views: 6118

Re: So much angst

I'm tired of the angst around this. I'm certainly not alone with the angst. There's topic after topic covering, Why include international? Why include bonds? Are CDs a good alternative to bonds? Should I invest or pay down debt? DIY? Robo? But the fees or minimum cash! Target date? Do bonds go in t...
by billthecat
Sun Jun 24, 2018 12:53 pm
Forum: Investing - Help with Personal Investments
Topic: So much angst
Replies: 52
Views: 6118

Re: So much angst

At the risk of adding to the angst.... By trying to mix multiple target-date funds to hit a stock allocation of exactly 60%, you are fixating way, way too much on a 1% difference between your desired asset allocation and your portfolio makeup at the moment. A 1% difference is insignificant. Your de...
by billthecat
Sun Jun 24, 2018 11:23 am
Forum: Investing - Help with Personal Investments
Topic: So much angst
Replies: 52
Views: 6118

So much angst

I'm tired of the angst around this. I'm certainly not alone with the angst. There's topic after topic covering, Why include international? Why include bonds? Are CDs a good alternative to bonds? Should I invest or pay down debt? DIY? Robo? But the fees or minimum cash! Target date? Do bonds go in ta...
by billthecat
Thu Jun 21, 2018 7:46 pm
Forum: Investing - Theory, News & General
Topic: Are mutual funds safer than ETFs?
Replies: 15
Views: 1797

Re: Are mutual funds safer than ETFs?

Aren’t ETFs more tax efficient?

When I looked at the recommended options in the wiki for three fund portfolios at various brokers, it seemed like the ETFs were more tax efficient.
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: 455

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: 4969

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: 455

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: 4969

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: 247

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: 1684

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: 85
Views: 9641

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: 1087

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: 85
Views: 9641

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: 52527

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: 12324

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: 85
Views: 9641

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: 1031

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...