Search found 1113 matches

by welderwannabe
Sat Nov 09, 2019 10:39 am
Forum: US Chapters
Topic: Post your Financial Milestone Announcements Here
Replies: 1012
Views: 136686

Re: Milestone #2 250K

Hi everybody, Just wanted to post because I hit a mini milestone today. Checked my Vanguard account and my stock holdings were just over 100K. I know this is small for most people on here, but considering I started investing in March 2013 and don't make a huge salary (I'm a teacher) it's something ...
by welderwannabe
Fri Nov 08, 2019 6:15 pm
Forum: Personal Investments
Topic: Heavy Loss in Stable Value Fund of 401k investments
Replies: 46
Views: 8397

Re: Heavy Loss in Stable Value Fund of 401k investments

I wonder what the OP's retirement plan managers are thinking now. They terminated the SV and took a hair cut to chase performance in a rising rate environment. Now that rates are down again, this looked like a real stupid move. Different situation than the recent poster where the SV was disolved due...
by welderwannabe
Sat Nov 02, 2019 7:52 am
Forum: Personal Investments
Topic: Extra $75k
Replies: 16
Views: 2337

Re: Extra $75k

. Sounds to me like the clock has already been reset. OP had 7 years of payments on the OLD property, but has since sold and bought a new property with a new 30 year term. Yup, that is one way to look at it and a common view point...and why a person with a paid for house is like a unicorn in the US...
by welderwannabe
Sun Oct 27, 2019 8:10 am
Forum: Personal Investments
Topic: Extra $75k
Replies: 16
Views: 2337

Re: Extra $75k

All, I've been split on this decision for 3 months now and am getting tired of going in loops in my head. We recently sold our home and yielded about $75k in cash from the sale. We have since bought a property that's at a higher price point than what we sold for. We had 7 years of payments at the o...
by welderwannabe
Sun Oct 20, 2019 6:12 pm
Forum: Personal Investments
Topic: Is a 6 month T-Bill a bond for AA purposes?
Replies: 19
Views: 1466

Re: Is a 6 month T-Bill a bond for AA purposes?

I consider a 3 month T-Bill and less cash as far as my AA goes. 6Month and longer I consider a short term bond.

Just the way I do it.
by welderwannabe
Sat Oct 19, 2019 12:32 pm
Forum: Personal Investments
Topic: What CD rate do I need to beat Prime MM?
Replies: 33
Views: 4518

Re: What CD rate do I need to beat Prime MM?

I hate to sound like a broken record with my posts, but don't count out Treasury Bills. State tax free...depending on your state that could make a big difference or none at all.
by welderwannabe
Sun Oct 13, 2019 7:42 am
Forum: Investing - Theory, News & General
Topic: Bond Investing when Yield Curve is Flat
Replies: 91
Views: 8241

Re: Bond Investing when Yield Curve is Flat

Going back to the Schwab paper referenced in the OP. Of the last 6 periods when stocks have fallen sharply intermediate T's have out performed T-Bills 3 times, T-Bills have outperformed 2 times and the other was essentially a wash. My question is does the yield curve give us a head's up as which wi...
by welderwannabe
Sun Oct 13, 2019 7:33 am
Forum: Investing - Theory, News & General
Topic: Bond Investing when Yield Curve is Flat
Replies: 91
Views: 8241

Re: Bond Investing when Yield Curve is Flat

You’re misdefining interest rate risk. What you’re describing is price risk, which is only one piece of interest rate risk. Reinvestment risk is the other piece, and it has an opposite sign from price risk. When duration of the asset matches the investment horizon, these two components of interest ...
by welderwannabe
Sun Oct 13, 2019 7:18 am
Forum: Personal Consumer Issues
Topic: Airline compensation
Replies: 8
Views: 1484

Re: Airline compensation

Actually, yes even in the USA so long as it's an EU carrier. We had a flight cancelled leaving JFK for the UK, and were delayed about 10 hours before getting on the next flight. We only paid about $225 each for the OW ticket, but it was Norwegian Air so they paid for a hotel & dinner near JFK but w...
by welderwannabe
Sat Oct 12, 2019 7:00 pm
Forum: Investing - Theory, News & General
Topic: Bond Investing when Yield Curve is Flat
Replies: 91
Views: 8241

Re: Bond Investing when Yield Curve is Flat

That is a risk, for sure, but it’s not interest rate risk. Duration matching can not eliminate ALL risks faced by an investor, just interest rate risk. Again, the interest rate risk is still there. If interest rates shoot up, the value of the long bond has fallen at that point in time. The value of...
by welderwannabe
Sat Oct 12, 2019 6:11 pm
Forum: Personal Investments
Topic: Total Bond or Intermediate-Term Tax-Exempt in taxable?
Replies: 16
Views: 1693

Re: Total Bond or Intermediate-Term Tax-Exempt in taxable?

I am retired and trying to determine whether I should hold Total Bond in taxable or IT TE. Or perhaps some other fund? My Federal tax bracket is 22%. In my IRA I am already holding Total Bond. The distribution yield of Total Bond is currently 2.64% and that of IT TE is 2.61%. When I run a simulatio...
by welderwannabe
Sat Oct 12, 2019 6:08 pm
Forum: Investing - Theory, News & General
Topic: Bond Investing when Yield Curve is Flat
Replies: 91
Views: 8241

Re: Bond Investing when Yield Curve is Flat

I was speaking direct about the case of the OP, who acknowledged a very long investment horizon (90+ years, if they were not being facetious). For an investor with such a long horizon, long-term bonds do in fact present the least interest rate risk. There is still risk because one's horizon may end...
by welderwannabe
Sat Oct 12, 2019 5:25 pm
Forum: Investing - Theory, News & General
Topic: Bond Investing when Yield Curve is Flat
Replies: 91
Views: 8241

Re: Bond Investing when Yield Curve is Flat

long-term Treasuries check the two most important boxes: best diversification and lowest interest rate risk. Not sure I agree with the latter point. I like LT Treasurys but they are generally considered of high interest rate risk...Duration of a 30 year treasury is usually in the 20ish year range (...
by welderwannabe
Sat Oct 12, 2019 5:21 pm
Forum: Investing - Theory, News & General
Topic: Bond Investing when Yield Curve is Flat
Replies: 91
Views: 8241

Re: Bond Investing when Yield Curve is Flat

With that in mind I want my Treasury portfolio to act as a foil to my equity position with emphasis on stock market corrections. With a more normal yield curve this would mean a significant part of my Treasuries would be in intermediate and long term bonds. But with a flat yield curve would those l...
by welderwannabe
Sat Oct 12, 2019 5:09 pm
Forum: Personal Consumer Issues
Topic: Airline compensation
Replies: 8
Views: 1484

Re: Airline compensation

Depends on where.

In the US, no...not for a delay.
by welderwannabe
Thu Oct 10, 2019 4:14 pm
Forum: Personal Investments
Topic: Settlement Fund vs Purchasing Fund
Replies: 15
Views: 774

Re: Settlement Fund vs Purchasing Fund

Is there a difference between leaving money in my Vanguard settlement fund (VMMFX) and purchasing that fund in my taxable account? Does it slow down the ability to have access to the money? it will not show up as 'funds available to trade' when it is in a fund in your account. so yes, it slows down...
by welderwannabe
Thu Oct 10, 2019 4:08 pm
Forum: Personal Finance (Not Investing)
Topic: GE Pension Buyout
Replies: 82
Views: 10860

Re: GE Pension Buyout

PBGC itself isn't in great fiscal shape. While it may get fixed/bailed out, it might not. Certainly something to factor into a decision.
by welderwannabe
Sat Oct 05, 2019 5:47 pm
Forum: Personal Investments
Topic: Help with Emergency Fund
Replies: 6
Views: 928

Re: Help with Emergency Fund

CrazyCatLady wrote:
Sat Oct 05, 2019 2:26 pm
Debt: $60,000 mortgage at 3%, 8 years left. Not inclined to pay this early because the interest rate is low.
If TBills were paying 3% i'd agree with you, but they aren't.
by welderwannabe
Fri Oct 04, 2019 11:22 am
Forum: Personal Investments
Topic: Stellar Bond Fund Returns - What does this mean?
Replies: 13
Views: 1252

Re: Stellar Bond Fund Returns - What does this mean?

HuckFinn wrote:
Thu Oct 03, 2019 11:37 pm
I read commentary about people debating dodging bond funds in lieu of Money Market funds and CD's as the long term outlook on bonds is tepid.
I support money market funds and CDs replacing short term bond allocations, but not intermediate/long.
by welderwannabe
Mon Sep 30, 2019 10:53 am
Forum: Investing - Theory, News & General
Topic: Why not use Margin Loan as eFund?
Replies: 63
Views: 4061

Re: Why not use Margin Loan as eFund?

MotoTrojan wrote:
Sun Sep 29, 2019 12:45 pm
0% APR credit card(s) would be a better primary option imho.
Except during 2008 credit was reduced and cards were cancelled. 0% rates also started to dry up.

I know this because it happened to me.
by welderwannabe
Wed Sep 25, 2019 6:29 am
Forum: Personal Investments
Topic: Buying ishares: Fidelity vs Vanguard
Replies: 14
Views: 1180

Re: Buying ishares: Fidelity vs Vanguard

That is a recent development at Vanguard. It is possible they walk it back at some point. Of course, so could Fidelity. Well, actually Fidelity only had a small smattering of iShares available commission free until this last February when they cranked it up to almost the entire iShares offering. 6 ...
by welderwannabe
Mon Sep 23, 2019 1:09 pm
Forum: Personal Investments
Topic: Buying ishares: Fidelity vs Vanguard
Replies: 14
Views: 1180

Re: Buying ishares: Fidelity vs Vanguard

anon_investor wrote:
Mon Sep 23, 2019 12:36 pm
While you can purchase iShares ETFs at Vanguard, you may have to pay commission fees per purchase
For the most part that is no longer the case.
by welderwannabe
Sun Sep 22, 2019 7:59 am
Forum: Personal Investments
Topic: VG ST Treasury vs ST Federal Bond Fund
Replies: 4
Views: 372

Re: VG ST Treasury vs ST Federal Bond Fund

You should look at the short term treasury index fund: Vanguard Short-Term Treasury Index Fund Admiral Shares (VSBSX). Treasury funds are perfect for indexing. No reason to pay managers for a treasury fund. You will get arguments over credit risk with agency debt at the Federal fund holds. Many beli...
by welderwannabe
Sun Sep 15, 2019 8:22 am
Forum: Personal Investments
Topic: How Much in Muni Funds?
Replies: 10
Views: 1557

Re: How Much in Muni Funds?

I am a little nervous, though, about having so much of my portfolio in muni funds, which are a relatively small part of the overall bond market and also subject to some risks beyond typical bond risks. I am also nervous that those risks may be more correlated to stock market risk, given the large p...
by welderwannabe
Sun Sep 01, 2019 2:32 pm
Forum: Personal Finance (Not Investing)
Topic: Cash & Checkbook Register Reconciliation
Replies: 62
Views: 3980

Re: Cash & Checkbook Register Reconciliation

abuss368 wrote:
Sat Aug 31, 2019 2:34 pm
Bogleheads -

Do you keep a checkbook register and reconcile each month? We have done this for many many years and are now questioning it for the following reasons:
I use quicken. I also use it for budgeting by having it auto pupulate all my known bills 30 days in advance.
by welderwannabe
Tue Aug 27, 2019 3:04 pm
Forum: Personal Investments
Topic: Sold my Business (2.2 Million)! Where to store proceeds while I think?
Replies: 81
Views: 9586

Re: Sold my Business (2.2 Million)! Where to store proceeds while I think?

I sold my business a few weeks ago for 2.2 million and I couldn't be more elated. My original plan was to store 250k with Ally but now their saving account interest is only 1.9%. Should I just keep the majority of the funds in VUSXX and a modest amount in Ally Savings for monthly living expenses? W...
by welderwannabe
Tue Aug 27, 2019 2:56 pm
Forum: Personal Investments
Topic: Is buying into a 10 year bond fund today buying at a bond market high
Replies: 20
Views: 1719

Re: Is buying into a 10 year bond fund today buying at a bond market high

Rudedog43 wrote:
Tue Aug 27, 2019 11:34 am
Been looking at going into a longer term bond fund but the little voice tells me going in after a couple of more fed raises might be better than going in now.
It would make the fund cheaper, but who knows how long it will be before that happens?
by welderwannabe
Mon Aug 26, 2019 12:27 pm
Forum: Personal Investments
Topic: Emergency Fund - Short Term Bond Funds or Money Market Funds?
Replies: 29
Views: 2828

Re: Emergency Fund - Short Term Bond Funds or Money Market Funds?

Depends on your risk tolerance. The money market funds listed above are fine choices. ICSH ETF is also one that could work. I, personally, wouldn't stretch the duration past ICSH and still call it an 'emergency fund'. Its fine to not have an emergency fund if you dont want one (many don't believe in...
by welderwannabe
Sun Aug 25, 2019 1:35 pm
Forum: Personal Investments
Topic: Bond Strategy for Taxable Account, 22% Tax Bracket
Replies: 11
Views: 2823

Re: Bond Strategy for Taxable Account, 22% Tax Bracket

At your current tax bracket, I wouldn't mess around with munis. When your tax bracket increases you can reassess. For your fixed income portion, put it all in Vanguard Intermediate-Term Treasury Index Fund Admiral Shares (VSIGX) and don't look back. State tax exempt, with your state tax bracket of 7...
by welderwannabe
Sun Aug 25, 2019 11:18 am
Forum: Investing - Theory, News & General
Topic: Negative Interest Rates in U.S.
Replies: 249
Views: 22434

Re: Negative Interest Rates in U.S.

It is technically the "THE SVERIGES RIKSBANK PRIZE IN ECONOMIC SCIENCES". The complete title is; "The Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel." It is commonly referred to as a "Nobel Prize". [/quote] Yes, I know what people commonly refer to it as, however associating...
by welderwannabe
Sun Aug 25, 2019 10:42 am
Forum: Personal Investments
Topic: Close Vanguard and go all in with Fidelity?
Replies: 109
Views: 13374

Re: Close Vanguard and go all in with Fidelity?

I use both. However, the Vanguard website is dreadful. I frequently see this sort of comment about the Vanguard website, but personally prefer the Vanguard site I am an old guy (74) so maybe my standards are low. I am not trying to start an argument, but wonder what features other websites have tha...
by welderwannabe
Sun Aug 25, 2019 7:04 am
Forum: Personal Investments
Topic: Lump sum multiple bonuses next few months?
Replies: 22
Views: 1675

Re: Lump sum multiple bonuses next few months?

I will be getting a few bonus payments next few months (maybe 25-30k per month post-tax for 4 months straight), and am hesitant to put it in the market, given the rocky volatility and sense of impending recession. My portfolio is not very large (~300k), so these would be ~10% of my portfolio deposi...
by welderwannabe
Sat Aug 24, 2019 4:44 pm
Forum: Personal Investments
Topic: Close Vanguard and go all in with Fidelity?
Replies: 109
Views: 13374

Re: Close Vanguard and go all in with Fidelity?

I use both. However, the Vanguard website is dreadful.
by welderwannabe
Sat Aug 24, 2019 1:48 pm
Forum: Investing - Theory, News & General
Topic: Negative Interest Rates in U.S.
Replies: 249
Views: 22434

Re: Negative Interest Rates in U.S.

Alfred Nobel specified he wanted prizes awarded for economics too and it's his money. I don't really see what undiscovered ideas are left in economics, but it's for not me to say. Actually, there isn't really a Nobel prize in Economics. That prize was founded long after his death in the 1960's. It ...
by welderwannabe
Sat Aug 24, 2019 9:19 am
Forum: Personal Investments
Topic: Vanguard MM 10-day hold on written checks
Replies: 25
Views: 2035

Re: Vanguard MM 10-day hold on written checks

I believe the vanguard checks are really bank drafts and not checks. Similar to the 'checks' carmax gives you when you sell a car to them...they are only good upon verification of clean title.

Many banks will hold them for extended periods of time.
by welderwannabe
Sat Aug 24, 2019 9:17 am
Forum: Personal Investments
Topic: Sudden infusion of cash “problems”
Replies: 26
Views: 2472

Re: Sudden infusion of cash “problems”

White Coat Investor wrote:
Sat Aug 24, 2019 9:11 am
Why do people think a mortgage isn't debt? This is not uncommon, but I find it fascinating that some debt routinely gets excluded.
I often hear the same things regarding student loans and car leases.
by welderwannabe
Sat Aug 24, 2019 9:16 am
Forum: Personal Investments
Topic: Sudden infusion of cash “problems”
Replies: 26
Views: 2472

Re: Sudden infusion of cash “problems”

At your mortgage rate and current intermediate term bond yields, I would pay off the mortgage before I put dime one into the bond market.
by welderwannabe
Thu Aug 22, 2019 7:07 pm
Forum: Personal Investments
Topic: New money, 401k vs I-bonds
Replies: 5
Views: 615

Re: New money, 401k vs I-bonds

Agreed. .5% real is looking pretty good right now.

Buy them before november.
by welderwannabe
Wed Aug 21, 2019 8:04 pm
Forum: Personal Investments
Topic: Series EE Treasury bonds for kiddie tax arbitrage
Replies: 14
Views: 1031

Re: Series EE Treasury bonds for kiddie tax arbitrage

So, if lots of ifs, or even only one, it is not really risk free is it? I think it is more probable to get high inflation at some point (not necessarily super high, say less than 10%) than to have 2% inflation for 20-30 years. In this case 3% could be even conservative. Basically we don't know, but...
by welderwannabe
Wed Aug 21, 2019 12:28 pm
Forum: Personal Investments
Topic: Series EE Treasury bonds for kiddie tax arbitrage
Replies: 14
Views: 1031

Re: Series EE Treasury bonds for kiddie tax arbitrage

At 3% inflation you get almost nothing for locking your money 20 years. Is not a deal I would take. Big assumption on the inflation rate. Last 20 years has averaged barely over 2%, and I believe 2% is the Fed's current target. If it holds at around 2% and the EE bond returns 1.5% real (3.5% nominal...
by welderwannabe
Wed Aug 21, 2019 12:02 pm
Forum: Personal Investments
Topic: Cash Investment Question.
Replies: 22
Views: 1132

Re: Cash Investment Question.

The terms cash and 'buy and hold' are usually mutually exclusive. Cash is a short term instrument by definition.
by welderwannabe
Sun Aug 18, 2019 8:08 pm
Forum: Personal Investments
Topic: Revisiting EE Bonds given 20 year treasury bond at ~1.9%
Replies: 31
Views: 2534

Re: Revisiting EE Bonds given 20 year treasury bond at ~1.9%

To an extent, yes, but the complication of EE bonds is that their liquidity effectively drops the longer you hold them right up until the 20 year period is up. As such, there is an increasing cost from switching from them to anything else. In a rising rate environment, you may have a significant pr...
by welderwannabe
Sun Aug 18, 2019 5:25 pm
Forum: Investing - Theory, News & General
Topic: I and EE bonds
Replies: 17
Views: 2194

Re: I and EE bonds

Normally, I would recommend TIPS over I-Bonds for a long-term investment, because long-term TIPS yield significantly more. However, the 30-year TIPS now yields 0.44%, which is less than the tax-deferred yield on I-Bonds issued through October 31. Therefore, I-Bonds are currently a free lunch. I-Bon...
by welderwannabe
Sun Aug 18, 2019 5:23 pm
Forum: Personal Investments
Topic: Revisiting EE Bonds given 20 year treasury bond at ~1.9%
Replies: 31
Views: 2534

Re: Revisiting EE Bonds given 20 year treasury bond at ~1.9%

In my view, those buying EE bonds are betting that over the next 20 years, inflation will remain very low, interest rates won't rise significantly, and the Treasury won't change the terms of EE bonds. Except for the last statement, that is the bet anyone buying a regular nominal treasury (20+ yrs) ...
by welderwannabe
Sat Aug 17, 2019 5:38 pm
Forum: Personal Investments
Topic: Minimal Cash and Bonds in Portfolio
Replies: 23
Views: 2389

Re: Minimal Cash and Bonds in Portfolio

I want to get a sanity check and really appreciate the fine minds at BH's. I am 67, have about $7M in assets, about 50% in rental real estate and about 50% in index stock funds. The $3.5M I have in index funds is almost entirely in S and P 500 Index and International Index funds (although I do keep...
by welderwannabe
Sat Aug 17, 2019 12:35 pm
Forum: Personal Investments
Topic: Where to put new money? Small Windfall
Replies: 16
Views: 2667

Re: Where to put new money? Small Windfall

Increasing the emergency fund, part of which can be put into Ibonds, will help the OP weather financial events in the future. Prepaying a 3.375% mortgage is a terrible choice if it means you carry a 24% credit card balance next month. My mistake as I misread your post. Since you finished your sente...
by welderwannabe
Sat Aug 17, 2019 12:25 pm
Forum: Personal Investments
Topic: Where to put new money? Small Windfall
Replies: 16
Views: 2667

Re: Where to put new money? Small Windfall

Sure we will. It’s close to zero given historical spread of rates, and even closer to inflation. That’s low on an absolute basis. Even pessimistic long term market return assumptions are about double his mortgage rate. But you clearly think he should prepay his mortgage. He wouldn’t be wrong to do ...
by welderwannabe
Sat Aug 17, 2019 9:35 am
Forum: Personal Investments
Topic: Where to put new money? Small Windfall
Replies: 16
Views: 2667

Re: Where to put new money? Small Windfall

8foot7 wrote:
Sat Aug 17, 2019 9:17 am
Op is young, 3.375 is an extraordinarily low 30 year rate
We wont know whether it is extraordinarily low for another 30 years. Mortgate rates have been 'extraordinarily' low for 20 years...making it not extraordinary.
by welderwannabe
Sat Aug 17, 2019 9:04 am
Forum: Investing - Theory, News & General
Topic: Why Zero (or Negative) Interest Rates Could Someday Make Sense
Replies: 92
Views: 6869

Re: Why Zero (or Negative) Interest Rates Could Someday Make Sense

Present inflation nationally exceeds 2%. Ergo, we presently reside in a negative real return environment. Where are you getting that number? CPI rate (including food and energy) was only 1.8% YOY. CPI - Food & Energy was 2.2%, but unless you don't use energy and don't eat, that number is meaningles...
by welderwannabe
Sat Aug 17, 2019 7:28 am
Forum: Personal Investments
Topic: Where to put new money? Small Windfall
Replies: 16
Views: 2667

Re: Where to put new money? Small Windfall

Divide the 25-30k you have left by 12 and invest that amount monthly into your asset allocation and forget about it. I wouldn't prepay a 30yr note at 3.375. With the 10-year treasury at 1.55%, why not? That makes the mortgage look pretty expensive IMHO. I-bonds? With mortgage debt at 3.375%? Why iB...