Bogleheads.org

I think the analysis may be no different for schools than it is for stocks. Good macro and micro fundamentals lead to good performance. A stock doesn’t perform any differently if it is in a taxable or tax advantaged account, and a child likely won’t perform any differently simply because they are in...

If you have or expect to have earned income of at least $1,000 in 2018, I’d recommend opening a Roth IRA at Vanguard and purchasing $1,000 of a Target Retirement Fund (e.g. Vanguard Target Retirement 2065 Fund (VLXVX)). Assuming your future cash available to invest comes from your earned income, you...

It’s also possible that the lender subsidized all the interest on the first mortgage as an incentive for you to open the HELOC. Not a bad business decision if they feel good about the loans and structured it in such a way that they believed they’d have an opportunity to earn more interest in total.

It’s possible the lender temporarily waived interest payments as an incentive to open the HELOC. This does not mean that the interest did not still accrue , in which case it would still be owed and payable either over time or all at once. Lenders track principal and interest balances separately, and...

Okay, here's a direct look at the holdings of Vanguard Small-Cap Value (VBR) and iShares S&P Small-Cap 600 Value (IJS) according to Morningstar. https://i.imgur.com/qpN3qc7.png?1 Market cap and price/book data are from Yahoo! Finance. I used the price/book ratio for the x axis this time because it ...

What benefit does Vanguard get from doing this? VTSAX is an overall better investment than VFIAX, but I seriously doubt they did this purely in the best interest of their employees It seems to be part of the general shift away from S&P indices. Vanguard does have hidden S&P Mid 400 and Small 600 ET...

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This is basically Occam's Razor, a principle to which I assume many BH subscribe.

Add: I see I was beat to it by book lover

Check and see if your 529 plan allows a 5-year contribution. Colorado's plan states: As an individual, you can make a lump sum contribution up to $75,000 (5-years at $15,000 for each year) to get the immediate benefit of five years’ worth of gift tax exclusions. For each and as many Beneficiaries a...

I totally agree. I think some of the conventional wisdom about leasing may not apply as broadly as I thought. I had essentially ignored it as foolish, but when I ran some numbers it seems that it could be best if the price is right. I did the same and arrived at the same conclusion. The “Money Fact...

In this scenario, where is the Fed getting the money to begin with? The treasury has to first 'borrow' the money before the bank/Fed can create it... so the debt owed by the treasury would go up by the amount the treasury is borrowing. :confused It’s actually the other way around. The Fed can liter...

If you reinvest dividends in a mutual fund, the fund has to purchase the underlying assets, and there will be a spread there, too. I don't think there's much of a difference. One you see very plainly, the other you don't. I may ignorant but aren't mutual funds ought and sold at a single price at en...

I have no experience with this site, but you may wish to take a look at stockpile.com. From what I can tell, you buy a gift card redeemable for whichever equity you select, and then the recipient creates an account and redeems the card for that equity. It appears that you can buy a generic card, or ...

Thanks to all for your help. I think I have found the answer and that is I can rename the beneficiary from myself to my son without tax consequences or considering it a gift . Per 2016 IRS publication 970 "Changing the Designated Beneficiary There are no income tax consequences if the designated be...

In addition to shifting income from a lower generation to a higher generation, you'd also have a lower basis in your house for purposes of deductions or gains.

I'm also invested in the Bright Start 529 Savings Plan, and although I've had similar thoughts, my conclusion is that these assets are safe. Absent an unlikely change to the Illinois Constitution, I don't believe Illinois or a bankruptcy court (under future federal law and absent a change to the US ...

I do not think a 529 would work, because a 529 would typically be in your name (with child as beneficiary). I can't speak for every 529, but I do know that many do allow for a UTMA/UGMA owned account, in which the minor is the only permitted beneficiary. I imagine, but cannot say with certainty, th...

So even if you completely ignore the higher return you get by paying off the loan relative to a comparable risk-free rate, the penalty of losing the tax-free space for 30 years is relatively small--certainly an order of magnitude less than the exaggerated examples in some of the replies. Kevin I ag...

I've read that if you only have to delay funding the roth a year or two it's not much of a concern, so I was curious how much in actual numbers I would be missing out on if I delayed the Roth for one year to pay off my car. I'm trying to separate the emotional high of getting the car paid off vs st...

If you can do both, do both. Also know that you can withdraw your Roth IRA contributions (but not earnings) tax/penalty-free, so if doing both will deplete your cash reserves below your comfort level, you could make the contribution, leave it in a MMF or short-term bond fund, and take it back out if...

Given the choice, since IRA contributions are use-it-or-lose-it, I would personally make the (Roth) IRA contribution without even giving it much thought. At 4%, a $5,500 contribution today would be over $20,000 when you're 65. You can Google for various calculators to find tabular and graphical mode...

Will Tdameritrade ever convert that option into SPY, or must I cover that option and buy SPY? Assuming SPY stays under 239 through Friday, this will almost certainly be automatically exercised on Friday, but could be exercised anytime between now and expiration. Technically, a holder may choose not...

Why would you only be able to get 500k if it's worth 850k? I agree that it's weird - when I was talking to the rep of the firm, he was saying the the property value went up significantly, but for me to cash out, I would need to sell my share to the willing buyer who would probably pay ~400k. That s...

I called Vanguard yesterday, and was told that a buy order for Vanguard Funds could be denominated in shares, but only as an additional purchase. Not seeing an option to buy additional "shares" in a Fund, I called back today, and after a brief hold, was told that the information I received yesterday...

I think I know what you are trying to do and it would be nice to be able to say that $x were purchased on the DOB but if you told a little white lie and were off by a few dollars would any harm be done? I don't think the message you will be trying to send will be diminished. :twisted: This is Bogle...

Just for my own curiosity, because you say clearly that you don't want the ETF, why not? Why not buy VTI? I know it's splitting hairs, but I'd like the total return to be as accurate as possible, and I view the MF shares as a bit more pure (no spreads or premiums/discounts). If VTI doesn't go back ...

One can gift an exact number of shares. So buy enough shares to cover the size of the gift and away you go. I'm holding it in my name for a future gift, and don't intend to make the actual gift for years. I could track a sub-balance of the total number of shares purchased (which would need to inclu...

I am a little puzzled at what you want to do, and possibly your child would be, too. Do you have conversations about what shares cost with the person? What would it mean to the child? To me, a certain dollar amount would be more meaningful, but you may have a different context. I'm trying to backda...

I know you can "sell" or "exchange from" specified number of shares but I don't see how you can do the "buy" unless you over-buy, then return the fractional part. But consider what you will do with the dividend or the capital gains the fund generates. After the first distribution, if you re-invest ...

The answer to the first part of your question is yes. The answer to the second part of your question is maybe. If your LLC is taxed as a sole proprietor (Schedule C of your Form 1040), then you're likely already paying Medicare and Social Security on your earnings, regardless of whether or not they ...

I would like to buy a descendant the number of shares that could've been purchased on their date of birth for a given dollar amount (in a Vanguard Fund (Mutual Fund, not ETF) at Vanguard). It seems the best I can do online is place a dollar order for Monday using the closing price on Friday (using F...