Search found 344 matches

by frankmorris
Mon Mar 11, 2019 10:12 am
Forum: Personal Investments
Topic: Should I go all in with Vanguard or "diversify" with Fidelity?
Replies: 37
Views: 4118

Re: Should I go all in with Vanguard or "diversify" with Fidelity?

I watched Mr. Robot and opened more accounts. Diversifies risk. Also, a main concern for me as a long-term investor with taxable accounts is the idea of liquidation of an account, forcing me to take massive capital gains. In 30 years, if for somer reason Vanguard decides to close and all of my funds...
by frankmorris
Wed Jan 09, 2019 1:14 pm
Forum: Investing - Theory, News & General
Topic: VMMXX - Interest or Dividend Tax?
Replies: 10
Views: 1366

Re: VMMXX - Interest or Dividend Tax?

The idea behind "qualified dividends" is that when companies pay stock dividends, the money comes from profits that have already been taxed at their corporate rate. So, the money in these dividends is actually being taxed twice, once at the corporate level, and again at the shareholder level. Money...
by frankmorris
Tue Jan 08, 2019 2:11 pm
Forum: Investing - Theory, News & General
Topic: VMMXX - Interest or Dividend Tax?
Replies: 10
Views: 1366

Re: VMMXX - Interest or Dividend Tax?

Ah, got it - so, basically there are no money market funds that are considered qualified dividends, correct?
by frankmorris
Mon Jan 07, 2019 1:06 pm
Forum: Investing - Theory, News & General
Topic: VMMXX - Interest or Dividend Tax?
Replies: 10
Views: 1366

Re: VMMXX - Interest or Dividend Tax?

Hmm sounds like two different experiences you all have had - are these both from personal experience? Wonder why it would be different for two different people
by frankmorris
Mon Jan 07, 2019 12:40 pm
Forum: Investing - Theory, News & General
Topic: VMMXX - Interest or Dividend Tax?
Replies: 10
Views: 1366

VMMXX - Interest or Dividend Tax?

Simple question I couldn't figure out from some initial research - is VMMXX (Vanguard Money Market) a mutual fund that pays dividends taxed as dividends, or does it accrue interest taxed as ordinary income? Relatedly, are other money market funds (e.g., Ally's money market fund) also dividend yieldi...
by frankmorris
Sun Nov 18, 2018 11:53 am
Forum: Personal Investments
Topic: Is it 'Market Timing' (i.e., Bad) to Have an Investment Plan Where You Increase Stock Allocation if Market Declines?
Replies: 25
Views: 2650

Re: Is it 'Market Timing' (i.e., Bad) to Have an Investment Plan Where You Increase Stock Allocation if Market Declines?

I've been thinking a lot about this as well recently, and here's my take from a non-professional/non-expert perspective: "Market timing" has come to take on different meanings and different connotations, and has such - to some degree - outlived its usefulness in terms of categorically avoiding somet...
by frankmorris
Fri Sep 14, 2018 3:49 pm
Forum: Personal Consumer Issues
Topic: How to help teenager fix silly mistakes in math?
Replies: 50
Views: 3570

Re: How to help teenager fix silly mistakes in math?

Haven't read all the responses so apologize if this has been said, but if the issue is that she gets the answer correct when she self-checks, but doesn't self-check and often makes careless answers, a simple strategy is just to have her place a check mark next to the number of the problem indicating...
by frankmorris
Mon Sep 10, 2018 12:01 pm
Forum: Investing - Theory, News & General
Topic: Breaking down BND (and all bond funds)
Replies: 14
Views: 1862

Re: Breaking down BND (and all bond funds)

I completely understand your confusion... here's my understanding of the quandary. The Vanguard site shows the Distribution yield for VBTLX based on the 8/31 distribution to be 2.78%, while the SEC yield is 3.13%. As cited above, the SEC yield uses yield-to-maturity based on the trailing 30-day per...
by frankmorris
Mon Sep 10, 2018 12:00 pm
Forum: Investing - Theory, News & General
Topic: Breaking down BND (and all bond funds)
Replies: 14
Views: 1862

Re: Breaking down BND (and all bond funds)

... Thank you for this - I just responded to the other post maybe indicating my understanding of what you're saying? But please correct me if I'm still off base! Thanks again Vanguard's description of its Total Bond Market ETF , BND, does show distributions. I'm not sure what you're referring to. M...
by frankmorris
Sun Sep 09, 2018 12:49 pm
Forum: Investing - Theory, News & General
Topic: Breaking down BND (and all bond funds)
Replies: 14
Views: 1862

Re: Breaking down BND (and all bond funds)

Yield to Maturity , YTM, which is what yield conventionally means if not otherwise specified, and on which the SEC yield is based (notice how I specified that?), also includes reinvestment of coupons and the inevitable convergence of the bond's market price with its face value as it approaches matu...
by frankmorris
Sun Sep 09, 2018 12:48 pm
Forum: Investing - Theory, News & General
Topic: Breaking down BND (and all bond funds)
Replies: 14
Views: 1862

Re: Breaking down BND (and all bond funds)

I completely understand your confusion... here's my understanding of the quandary. The Vanguard site shows the Distribution yield for VBTLX based on the 8/31 distribution to be 2.78%, while the SEC yield is 3.13%. As cited above, the SEC yield uses yield-to-maturity based on the trailing 30-day per...
by frankmorris
Sun Sep 09, 2018 12:42 pm
Forum: Investing - Theory, News & General
Topic: 3 fund portfolio with Money Market instead of Bonds
Replies: 26
Views: 3316

3 fund portfolio with Money Market instead of Bonds

With concern over performance of bond funds in the coming years and the ability to quickly move out of a money market fund into a bond fund, has anyone considered building their three fund portfolio using money market fund (e.g., VMMXX) over a bond fund (e.g., BND)? Historically, this may not have m...
by frankmorris
Sat Sep 08, 2018 3:08 pm
Forum: Investing - Theory, News & General
Topic: Breaking down BND (and all bond funds)
Replies: 14
Views: 1862

Re: Breaking down BND (and all bond funds)

Your response is much appreciated! Interest rates have gone up since the beginning of 2018 and since a year ago. Here is what Vanguard tells clients about SEC yield for BND: https://i.imgur.com/fRSadFU.png So it appears to me the SEC yield only uses the past 30 days of income paid by bonds owned by ...
by frankmorris
Sat Sep 08, 2018 2:23 pm
Forum: Investing - Theory, News & General
Topic: Breaking down BND (and all bond funds)
Replies: 14
Views: 1862

Breaking down BND (and all bond funds)

Folks, I have to start out with an apology. Understanding bond funds has been like understanding debits & credits - the more I learn, the less I feel like I know. So, I'm researching my actual distribution yield from BND to try to make an apples to apples comparison with my Ally high-yield savings a...
by frankmorris
Mon Sep 03, 2018 12:20 pm
Forum: Investing - Theory, News & General
Topic: "6 Reasons The Rich Should Pay-Off Their Mortgage"
Replies: 196
Views: 38272

Re: "6 Reasons The Rich Should Pay-Off Their Mortgage"

Late to this thread, but to me: Largely a math question based on personal circumstances (e.g., how relatively beneficial is the mortgage interest deduction), but overall I love the comment on the first page that it's really an asset allocation question. For those with larger amounts of money looking...
by frankmorris
Fri Aug 31, 2018 2:25 pm
Forum: Personal Consumer Issues
Topic: Need recommendation for home alarm system
Replies: 48
Views: 4608

Re: Need recommendation for home alarm system

Good article in the WSJ this week about DIY home security systems, some that came with the option of having a company monitor them. I haven't looked into those options, but I wonder if insurance would treat them the same. Paywall notice, but here's the link: https://www.wsj.com/articles/home-securi...
by frankmorris
Wed Aug 29, 2018 11:58 am
Forum: Personal Consumer Issues
Topic: Need recommendation for home alarm system
Replies: 48
Views: 4608

Re: Need recommendation for home alarm system

Good article in the WSJ this week about DIY home security systems, some that came with the option of having a company monitor them. I haven't looked into those options, but I wonder if insurance would treat them the same. Paywall notice, but here's the link: https://www.wsj.com/articles/home-securit...
by frankmorris
Sat Aug 25, 2018 11:05 am
Forum: Personal Consumer Issues
Topic: Need recommendation for home alarm system
Replies: 48
Views: 4608

Re: Need recommendation for home alarm system

Interesting about the discount on the homeowners insurance - hard to believe folks are getting discounts of $400+ on their yearly premium on homeowners insurance - may need to call USAA again and see what the difference is
by frankmorris
Thu Aug 23, 2018 11:57 am
Forum: Personal Consumer Issues
Topic: Need recommendation for home alarm system
Replies: 48
Views: 4608

Re: Need recommendation for home alarm system

Does anyone have experience with self-monitoring, meaning not hiring a company to do the monitoring, but using tech to feed data back to you, send alerts, etc.

Honestly, it seems foolish in 2018 for someone to monitor some data and call the police.
by frankmorris
Fri Aug 10, 2018 1:05 pm
Forum: Personal Investments
Topic: SEC yield vs (Schwab) 7-day yield vs Bank Interest
Replies: 8
Views: 1148

Re: SEC yield vs (Schwab) 7-day yield vs Bank Interest

Thanks Grabinar for the clarification - too bad reporting by Vanguard isn't a little more straightforward
by frankmorris
Thu Aug 09, 2018 12:51 pm
Forum: Personal Investments
Topic: SEC yield vs (Schwab) 7-day yield vs Bank Interest
Replies: 8
Views: 1148

Re: SEC yield vs (Schwab) 7-day yield vs Bank Interest

Sorry for the delay in this. So, I think I'm now more confused. So, you're saying the SEC yield is the dividend PLUS any gain in the value of the fund? Put more simply, how do I simply determine the dividend yield without having to manually calculate it manually by looking at actual monthly dividend...
by frankmorris
Sat Aug 04, 2018 12:36 am
Forum: Investing - Theory, News & General
Topic: Fidelity Files for Four Fidelity ZERO℠ Funds (0.00% ER)
Replies: 807
Views: 87008

Re: Fidelity Files for two Fidelity ZERO℠ Funds (0.00% ER total stock and total international mutual funds)

The question of hidden expenses leads me to ask what Bogleheads estimate to be the hidden fees in your typical TSM fund, both at Vanguard and the competitors. Are the Vanguard supporters here saying that Vanguard exposes all of their fees in the 0.03 ER for those particular funds? What are the avera...
by frankmorris
Sat Aug 04, 2018 12:31 am
Forum: Investing - Theory, News & General
Topic: Fidelity Files for Four Fidelity ZERO℠ Funds (0.00% ER)
Replies: 807
Views: 87008

Re: Fidelity Files for two Fidelity ZERO℠ Funds (0.00% ER total stock and total international mutual funds)

Vanguard's CIO issued a statement about Fidelity's move: https://www.bloomberg.com/news/articles/2018-08-03/vanguard-cio-says-investors-must-consider-catch-of-free-funds This is very unpersuasive - he basically argues against his own company and business model when he says to be skeptical of low-co...
by frankmorris
Sat Aug 04, 2018 12:21 am
Forum: Personal Investments
Topic: SEC yield vs (Schwab) 7-day yield vs Bank Interest
Replies: 8
Views: 1148

Re: SEC yield vs (Schwab) 7-day yield vs Bank Interest

One thing that may be confusing is that the computation of SEC yield differs depending on product. For money-markets, the SEC yield is a 7-day SEC yield while for most bond funds it is a 30-day one. So, your Schwab 7-day yield is likely precisely the SEC yield. Ah, that makes sense. So, am I correc...
by frankmorris
Thu Aug 02, 2018 6:24 pm
Forum: Personal Investments
Topic: Park more than $250,000 in cash
Replies: 24
Views: 3391

Re: Park more than $250,000 in cash

Don't overlook the beauty of simplicity. Your original plan is a good one, this is a temporary situation and how much time, effort and complexity do you want to go through for what will be at best a marginal improvement over your proposed approach. I am in a similar situation as I am selling my hom...
by frankmorris
Thu Aug 02, 2018 6:08 pm
Forum: Personal Investments
Topic: SEC yield vs (Schwab) 7-day yield vs Bank Interest
Replies: 8
Views: 1148

Re: SEC yield vs (Schwab) 7-day yield vs Bank Interest

One thing that may be confusing is that the computation of SEC yield differs depending on product. For money-markets, the SEC yield is a 7-day SEC yield while for most bond funds it is a 30-day one. So, your Schwab 7-day yield is likely precisely the SEC yield. Ah, that makes sense. So, am I correc...
by frankmorris
Thu Aug 02, 2018 5:40 pm
Forum: Personal Investments
Topic: SEC yield vs (Schwab) 7-day yield vs Bank Interest
Replies: 8
Views: 1148

SEC yield vs (Schwab) 7-day yield vs Bank Interest

I've got another thread going inquiring about parking some cash temporarily, and trying to figure out how to compare yields across savings instruments: I'm seeing SEC yields. 7-day yields (Schwab), and of course traditional yields such as savings account interest rates. Obviously, rates fluctuate so...
by frankmorris
Thu Aug 02, 2018 11:17 am
Forum: Investing - Theory, News & General
Topic: Fidelity Files for Four Fidelity ZERO℠ Funds (0.00% ER)
Replies: 807
Views: 87008

Re: Fidelity Files for two Fidelity ZERO℠ Funds (0.00% ER total stock and total international mutual funds)

Newbie question here: If a funds ER changes, do existing owners of shares receive that lower ER? Is this uniform across all funds/ETFs and all companies? That's a great point about waiting to withdraw funds from competitor accounts such as SCHB and SCHF - there won't be much lost in the next few mon...
by frankmorris
Thu Aug 02, 2018 11:12 am
Forum: Personal Investments
Topic: Park more than $250,000 in cash
Replies: 24
Views: 3391

Re: Park more than $250,000 in cash

Since you already have money with Ally, create a CD portfolio with them. A 12 month is yielding 2.4%. You would get better yield than just the savings account. The CD unfortunately still counts toward the FDIC limit, and I don't want to lock up money that long, although the early withdrawal penalti...
by frankmorris
Thu Aug 02, 2018 11:12 am
Forum: Personal Investments
Topic: Park more than $250,000 in cash
Replies: 24
Views: 3391

Re: Park more than $250,000 in cash

jacoavlu wrote:
Thu Aug 02, 2018 12:34 am
Pretty sure money market funds have to report yield after accounting for expenses. So the reported yield should be what you get
Ah, this is a good and interesting point. Thanks - will have to research this. Is that just money market accounts, or all SEC yields?
by frankmorris
Thu Aug 02, 2018 11:10 am
Forum: Personal Investments
Topic: Bottom of the MAGI bucket - Interest vs dividends
Replies: 10
Views: 779

Re: Bottom of the MAGI bucket - Interest vs dividends

Sorry, you're saying salary is bottom, then bank interest, and then dividends on top? If so, is that specified somewhere, or is it just because salary and bank interest are taxed at a higher rate than dividends? One could equally say interest on the bottom, then salary. All "ordinary income" items ...
by frankmorris
Thu Aug 02, 2018 11:09 am
Forum: Personal Investments
Topic: Bottom of the MAGI bucket - Interest vs dividends
Replies: 10
Views: 779

Re: Bottom of the MAGI bucket - Interest vs dividends

Here's my question: In what order are dividends and bank interest "stacked?" Let's say that I received no salary, $30,000 of bank of interest, and $30,000 of qualified dividends. Would the interest be at the "bottom of the bucket" and taxed at the 10% and 12% ordinary tax levels, then the dividends...
by frankmorris
Thu Aug 02, 2018 12:50 am
Forum: Personal Investments
Topic: Bottom of the MAGI bucket - Interest vs dividends
Replies: 10
Views: 779

Re: Bottom of the MAGI bucket - Interest vs dividends

A good explanation by Kitces including a couple great graphics. Brackets are different now, but concept the same. https://www.kitces.com/blog/understanding-the-mechanics-of-the-0-long-term-capital-gains-tax-rate-how-to-harvest-capital-gains-for-a-free-step-up-in-basis/ Thanks - this is a fantastic ...
by frankmorris
Thu Aug 02, 2018 12:43 am
Forum: Personal Investments
Topic: Bottom of the MAGI bucket - Interest vs dividends
Replies: 10
Views: 779

Re: Bottom of the MAGI bucket - Interest vs dividends

Here's my question: In what order are dividends and bank interest "stacked?" Let's say that I received no salary, $30,000 of bank of interest, and $30,000 of qualified dividends. Would the interest be at the "bottom of the bucket" and taxed at the 10% and 12% ordinary tax levels, then the dividends...
by frankmorris
Thu Aug 02, 2018 12:09 am
Forum: Personal Investments
Topic: Bottom of the MAGI bucket - Interest vs dividends
Replies: 10
Views: 779

Re: Bottom of the MAGI bucket - Interest vs dividends

Salary, bank interest, then dividends at the bottom up Sorry, you're saying salary is bottom, then bank interest, and then dividends on top? If so, is that specified somewhere, or is it just because salary and bank interest are taxed at a higher rate than dividends? Are there other "ordering rules"...
by frankmorris
Thu Aug 02, 2018 12:07 am
Forum: Investing - Theory, News & General
Topic: Fidelity Files for Four Fidelity ZERO℠ Funds (0.00% ER)
Replies: 807
Views: 87008

Re: Fidelity Files for two Fidelity ZERO℠ Funds (0.00% ER total stock and total international mutual funds)

I too share the questions about the tax efficiency of these new funds vs other mutual funds vs ETFs - if an ETF has better tax efficiency, I'm struggling to see why this would be better. Would be great to know the proposed or anticipated capital gains distributions as well as general turnover rates,...
by frankmorris
Wed Aug 01, 2018 11:54 pm
Forum: Personal Investments
Topic: Park more than $250,000 in cash
Replies: 24
Views: 3391

Re: Park more than $250,000 in cash

rgs92 wrote:
Wed Aug 01, 2018 12:46 pm
Fidelity SPRXX is good (it's one of their money market funds with some sort of marketing name). It's totally liquid. 7 day yield 1.84%.
(EZ On, EZ Off for short term needs.)
Thanks - yield looks similar, but the ER seems a bit higher?
by frankmorris
Wed Aug 01, 2018 11:52 pm
Forum: Personal Investments
Topic: Bottom of the MAGI bucket - Interest vs dividends
Replies: 10
Views: 779

Bottom of the MAGI bucket - Interest vs dividends

So sorry - I'm sure this is answered somewhere, but I couldn't find it, and am honestly having a hard time putting this into words. I understand the following to be true when calculating marginal tax brackets & dividends vs ordinary income such as salary: The "bottom of the bucket" so to speak would...
by frankmorris
Wed Aug 01, 2018 12:51 pm
Forum: Investing - Theory, News & General
Topic: Fidelity Files for Four Fidelity ZERO℠ Funds (0.00% ER)
Replies: 807
Views: 87008

Re: Fidelity Files for two Fidelity ZERO℠ Funds (0.00% ER total stock and total international mutual funds)

First, I'm quite thankful for Bogleheads to be able to come online and instantly read (and participate in) reactions after I read a news story! Second, does anyone expect any tax implications of owning this Mutual Fund versus a similarly portfolio'd ETF? I don't understand the mechanics fully, but ...
by frankmorris
Wed Aug 01, 2018 12:50 pm
Forum: Investing - Theory, News & General
Topic: Fidelity Files for Four Fidelity ZERO℠ Funds (0.00% ER)
Replies: 807
Views: 87008

Re: Fidelity Files for two Fidelity ZERO℠ Funds (0.00% ER total stock and total international mutual funds)

Just watching Fidelity on CNBC now with a more full explanation, including the addition that the "Total Market" fund is a Total US market fund, which is a bit of helpful clarification.
by frankmorris
Wed Aug 01, 2018 12:44 pm
Forum: Personal Investments
Topic: Park more than $250,000 in cash
Replies: 24
Views: 3391

Re: Park more than $250,000 in cash

Thanks everyone - really great replies, and some great options here. DIY bond laddering may be a bit beyond my ability level, and honestly I'm not entirely sure where I want to direct funds at this point, so I really would like to preserve as much liquidity as possible. I'll be going through each of...
by frankmorris
Wed Aug 01, 2018 12:39 pm
Forum: Personal Investments
Topic: Park more than $250,000 in cash
Replies: 24
Views: 3391

Re: Park more than $250,000 in cash

If I didn’t need the funds too soon I would open a new account at E*TRADE for a $600 cash bonus, and then buy the vanguard treasury money market there because it trades free at E*TRADE I’m pretty sure. That’s like an extra 0.3% if we’re looking for max yield with safety. Thanks for the heads up on ...
by frankmorris
Wed Aug 01, 2018 12:31 pm
Forum: Personal Investments
Topic: Sell securities without a commission - advice needed
Replies: 6
Views: 525

Re: Sell securities without a commission - advice needed

Thanks everyone - the inherited assets will be a mix of a few things - bonds, individual stocks, mutual funds, etc. I've definitely presented the option I'll personally be using of Schwab, Vanguard, and now potentially Fidelity with these ZERO funds (no expense ratio), but I think she's committed to...
by frankmorris
Wed Aug 01, 2018 12:26 pm
Forum: Investing - Theory, News & General
Topic: Fidelity Files for Four Fidelity ZERO℠ Funds (0.00% ER)
Replies: 807
Views: 87008

Re: Fidelity Files for two Fidelity ZERO℠ Funds (0.00% ER total stock and total international mutual funds)

First, I'm quite thankful for Bogleheads to be able to come online and instantly read (and participate in) reactions after I read a news story! Second, does anyone expect any tax implications of owning this Mutual Fund versus a similarly portfolio'd ETF? I don't understand the mechanics fully, but m...
by frankmorris
Tue Jul 31, 2018 9:25 pm
Forum: Personal Investments
Topic: Sell securities without a commission - advice needed
Replies: 6
Views: 525

Sell securities without a commission - advice needed

Hello everyone: My family is working through figuring out how to handle an inheritance. Personally, I'm choosing to go my own route with a simple Boglehead-esque portfolio, complete with no/little sales commissions. However, a family member is wanting to eventually keep a managed account with a taxa...
by frankmorris
Tue Jul 31, 2018 9:06 pm
Forum: Personal Investments
Topic: Park more than $250,000 in cash
Replies: 24
Views: 3391

Re: Park more than $250,000 in cash

If you need to carry more than $50,000, vanguard treasury money market is great. Current sec yield 1.87. State and local income tax exempt, which for some will make the taxable equivalent yield higher than prime money market. 100% in t bills so no need for FDIC insurance. Otherwise you can do a var...
by frankmorris
Tue Jul 31, 2018 9:03 pm
Forum: Personal Investments
Topic: Park more than $250,000 in cash
Replies: 24
Views: 3391

Re: Park more than $250,000 in cash

If you want FDIC insurance with simplicity and the most liquidity, look into Fidelity's Cash Management Account (CMA). The CMA uses 5-10 other banks under the hood (you ONLY deal with Fidelity) and pays 0.53% on amounts over $100k. Other brokerages offer similar accounts but Fidelity's is the best ...
by frankmorris
Tue Jul 31, 2018 8:39 pm
Forum: Personal Investments
Topic: Park more than $250,000 in cash
Replies: 24
Views: 3391

Park more than $250,000 in cash

Hi everyone, I've searched forums and thought I'd go ahead and create a new thread with the current interest rate environment. I'll be dealing with some cash flows over the coming months and will end up with more than $250,000 in cash, and am wondering current suggestions on safely parking that cash...
by frankmorris
Mon Jul 30, 2018 10:52 am
Forum: Investing - Theory, News & General
Topic: Are stocks dangerously overvalued? Not according to new Vanguard yardstick
Replies: 84
Views: 9278

Re: Are stocks dangerously overvalued? Not according to new Vanguard yardstick

I usually like to remind people that rates of return are generally not "smoothed" as experienced over time, so the entire CAPE conversation affects different investments differently. The 3-5% expected annualized return, for example, could involve a 40% loss next year, followed by 10-12% gains the fo...
by frankmorris
Sun Jul 22, 2018 1:26 am
Forum: Personal Investments
Topic: View Vanguard account within Schwab (connected accounts)
Replies: 17
Views: 1718

Re: View Vanguard account within Schwab (connected accounts)

This should work. I can confirm that I have this working. Sometimes you may need to re-login, but you'll get an alert from Schwab and it'll prompt you to update it. Did you login as a checking or savings account for Vanguard? Meaning that when Schwab prompts you to select, which do you choose? I lo...