Search found 1622 matches

by welderwannabe
Fri Mar 08, 2024 8:40 am
Forum: Personal Investments
Topic: Vgd Bond Page Nth Complaint
Replies: 12
Views: 1134

Re: Vgd Bond Page Nth Complaint

The easiest way to solve for bond buying problems at vanguard is to buy them at fidelity and use their autoroll feature. Works well.
by welderwannabe
Fri Mar 08, 2024 8:35 am
Forum: Personal Investments
Topic: what to do with I Bonds
Replies: 24
Views: 2940

Re: what to do with I Bonds

They are extra tax deferred space. Thats hard to get.

If you're not maxxing out your 401k/IRA options, maybe I'd consider selling them to help offset increasing your 401k/IRA contributions. If those are maxxed out, then I'd hold onto the iBonds.
by welderwannabe
Fri Feb 23, 2024 11:07 am
Forum: Personal Investments
Topic: 401k fund choices (make sure you're sitting down)
Replies: 32
Views: 2830

Re: 401k fund choices (make sure you're sitting down)

Thanks everyone for the feedback, I'm glad I asked. I post a lot of advice on here myself and have attended a few BH conferences so you start to think like you know everything, but clearly I don't as your suggestions are vastly different from what I was going to do.

I had not really factored in the tax benefits (we vary between 32% and 35% depending on year) and I should have, and I was also thinking of going with the fund that beat its benchmark the most to try to take advantage of the active mgmt we are forced to pay for, versus using the lowest cost funds (bonds).

We will swing more of our bond allocation to this account from my low fee 401k and she will go with bonds in her high ER 401k and max it out.

Thanks as always for the advice.
by welderwannabe
Fri Feb 23, 2024 11:01 am
Forum: Personal Investments
Topic: 401k fund choices (make sure you're sitting down)
Replies: 32
Views: 2830

Re: 401k fund choices (make sure you're sitting down)

mikejuss wrote: Thu Feb 22, 2024 12:09 pm Are you quite sure these are all of the options in your wife's 401(k)?
Yes, I am. Its all of the options in both their portal and the PDF plan documents they provided.
by welderwannabe
Thu Feb 22, 2024 5:56 pm
Forum: Personal Investments
Topic: 401k fund choices (make sure you're sitting down)
Replies: 32
Views: 2830

Re: 401k fund choices (make sure you're sitting down)

retired@50 wrote: Thu Feb 22, 2024 11:55 am The selling point is the benefit to the company, not the plan participants. The company probably doesn't have to cough up much (if any) money for a plan like this one with high ERs. The people on the 401k committee are probably choosing the lowest fee structure, for the company, they can find.

Regards,

Absolutely correct in this case.
by welderwannabe
Thu Feb 22, 2024 11:23 am
Forum: Personal Investments
Topic: 401k fund choices (make sure you're sitting down)
Replies: 32
Views: 2830

401k fund choices (make sure you're sitting down)

My wife's company has just switched from a simple to a 401k. The following fund choices are available. With this, im thinking she should just contribute up to the match (100% of the first 4%) and not bother with anymore. Which of these not so great choices should she go with? There is no plan fee on top of these expense ratios at least. This will be a very small % of our assets, so the rest of our allocation isn't important. Just looking for the best bang for our expense ratio buck. Leaning towards the smallcap world as I feel small caps, especially international, may have some value from active management and it is one of the funds that has outperformed its benchmark over the last 10 years. Thoughts? American Funds 2010 TD R3 .93%ER Americ...
by welderwannabe
Wed Feb 21, 2024 8:54 am
Forum: Personal Investments
Topic: Help - Can Marcus Lock Our Savings Account Willy-nilly?
Replies: 44
Views: 6091

Re: Help - Can Marcus Lock Our Savings Account Willy-nilly?

Just wanted to add my voice to the chorus here. My account was restricted in December for transferring funds to a Fidelity brokerage account from my Marcus HYSA. I speculated that it had to do with the fact that Fidelity uses a partner bank. Marcus wanted to verify account ownership and required a three-way call with a representative from Fidelity. I had to intervene to let both representatives know that Fidelity uses a partner bank and that prefixes are added to the account numbers, since the Marcus representative was confused that the account didn't have "Z" and was all numbers. That was stressful, and I didn't want to risk any feathers being ruffled and locking up my entire savings. It was resolved, and I'm assured by Marcus t...
by welderwannabe
Sun Feb 18, 2024 11:48 am
Forum: Personal Investments
Topic: Vanguard Wellesley
Replies: 125
Views: 18357

Re: Vanguard Wellesley

I'll respectfully disagree only to the extent that the target date income funds at Vanguard (and most target date funds) get to 30/70 around 7 years past the target date and stay there the rest of one's life. Vanguard has determined that a 30/70 portfolio can at least keep with inflation And Vanguard and other advisors positions on what a proper AA, including the allocation to international stocks and bonds, have changed throughout the years. Some I suspect is to add money into new funds so they can look successful and give them a launch pad. The target retirement income fund, which is the fund all these target dates turn into in retirement has changed quite a bit. It used to be 5% cash (specifically in their prime money market fund if you...
by welderwannabe
Sun Feb 18, 2024 9:24 am
Forum: Personal Investments
Topic: Vanguard Wellesley
Replies: 125
Views: 18357

Re: Vanguard Wellesley

Tough crowd here. I think all of the responses above this post were respectful, educational, and also correct. If you're looking for educated opinions you came to the right place. If you're looking for pompoms and cheerleaders that will validate your past decisions you didn't. As to your question, I do not think Welsey is appropriate for a 62 year old. I believe 65% bonds is too many bonds for any age bracket. I may be in the minority in that thinking, but you asked. I vastly prefer something closer to a 60% stocks 40% bonds allocation for ones entire life. Its a single AA that can take you from cradle to grave. So something like this: VBIAX Vanguard Balanced Index Fund Admiral Shares or this: VSMGX Vanguard LifeStrategy Moderate Growth Fund
by welderwannabe
Mon Feb 05, 2024 3:01 pm
Forum: Personal Investments
Topic: VUSXX = 80.6% U.S. Treasury for 2023
Replies: 67
Views: 9744

Re: VUSXX to be 100% government obligations in 2024?

In 2022, the "Fidelity Treasury Only Money Market Fund" had 93.63% of its income from US Government Obligations. Well that just sounds like false advertising! Should be called the Cash and Treasury Only money market fund. The main difference between it and VUSXX is FDLXX doesn't seem to do repos, which can have a small but non zero counterparty risk. Although its important to note that VUSXX sticks with repos at the Fed Reserve only. What is the Cash invested in? In February 2023, FDLXX had $182 million in what it vaguely called “Net other assets”. This can’t be $100 bills. What can it be other than repos? No idea, and I've never been able to figure it out by spelunking through the annual report and prospectus https://www.boglehe...
by welderwannabe
Fri Feb 02, 2024 8:28 am
Forum: Personal Investments
Topic: Vanguard/Fidelity Funds - Splitting the Difference
Replies: 22
Views: 2244

Re: Vanguard/Fidelity Funds - Splitting the Difference

I think the bigger risk is losing access to your funds due to a security issue, account lockout etc. That, in my mind, is the primary advantage to splitting up funds. Not financial failure/corruption at a given firm.
by welderwannabe
Fri Feb 02, 2024 8:21 am
Forum: Personal Investments
Topic: VUSXX = 80.6% U.S. Treasury for 2023
Replies: 67
Views: 9744

Re: VUSXX to be 100% government obligations in 2024?

toddthebod wrote: Thu Feb 01, 2024 7:46 pm
Geologist wrote: Thu Feb 01, 2024 7:38 pm In 2022, the "Fidelity Treasury Only Money Market Fund" had 93.63% of its income from US Government Obligations.
Well that just sounds like false advertising!
Should be called the Cash and Treasury Only money market fund. The main difference between it and VUSXX is FDLXX doesn't seem to do repos, which can have a small but non zero counterparty risk. Although its important to note that VUSXX sticks with repos at the Fed Reserve only.
by welderwannabe
Sun Jan 28, 2024 2:06 pm
Forum: Personal Investments
Topic: Thinking of Slowing Down in a Couple of Years?
Replies: 5
Views: 1598

Re: Thinking of Slowing Down in a Couple of Years?

While I don't have your assets I am considering the same thing. Im getting burned out.

For health insurance, a part time job (or even full time) that doesn't require me to use my brain and when I clock out i'm out can provide health insurance. Its not that I don't want to work, just that I don't want to continue to destroy my mental health with the stress.
by welderwannabe
Thu Jan 25, 2024 8:55 am
Forum: Personal Investments
Topic: moving $400k from Fed. MMKT
Replies: 9
Views: 946

Re: moving $400k from Fed. MMKT

Is the target date fund in taxable? If so, thats not ideal however if it has a lot of gains U may not be able to sell w/o tax implications.

Regarding the MM money, my suggestion is to invest it according to your AA. I'd put the stock allocation in S&P500 index or Total market index fund. You can also layer in a international index fund if desire, as in taxable you will also get a tax credit for the foreign taxes paid.

For the bond portion, I generally suggest Treasury funds in taxable since they are state tax free and especially considering your retired your fed tax rate is probably low enough that municipals wont make sense.
by welderwannabe
Tue Jan 23, 2024 2:15 pm
Forum: Personal Investments
Topic: At Vanguard is VUSXX the safest money market fund?
Replies: 2
Views: 631

Re: At Vanguard is VUSXX the safest money market fund?

Yes. One of the safest anywhere.
by welderwannabe
Mon Jan 22, 2024 10:56 pm
Forum: Personal Investments
Topic: Fidelity FDIC Core Account - CMA
Replies: 21
Views: 1851

Re: Fidelity FDIC Core Account - CMA

I use CMA but buy a money market position there
by welderwannabe
Thu Jan 04, 2024 12:33 pm
Forum: Personal Investments
Topic: The Traditional vs. Roth Split Decision: As Insanely Complex as It Seems?
Replies: 156
Views: 21527

Re: The Traditional vs. Roth Split Decision: As Insanely Complex as It Seems?

I max out the $$$$ in my megacorp 401k before the percentage because I'm well compensated. I do around 3% as if I do any higher I'll max it out earlier in the year and miss out on the match.

Therefore, since I am limited to such a small percentage, I go all Roth. In my mind, doing Roth allows me to contribute 'more' since I'm putting in pre-tax dollars.

I also gave up on the backdoor Roth routine as I got tired of managing a solo 401k. The annual 401k paperwork needs to be filed and there are huge fines if you miss it and it would stress me out every year remembering to do it. So my megacorp 401k is my only roth opportunity, so I take advantage of it.
by welderwannabe
Thu Jan 04, 2024 10:29 am
Forum: Personal Investments
Topic: With VMFXX yielding 5.3%, why not stay in cash for now?
Replies: 61
Views: 12341

Re: With VMFXX yielding 5.3%, why not stay in cash for now?

Because by the time you realize you shouldn't be in cash any longer you've already missed the move.
by welderwannabe
Wed Jan 03, 2024 2:27 pm
Forum: Personal Investments
Topic: Unsure about bond fund
Replies: 4
Views: 687

Re: Unsure about bond fund

Carver143 wrote: Tue Jan 02, 2024 5:35 pm I am retired and want to increase my allocation to bonds. Before rebalancing I was thinking of combing the 2 bond funds I own into Total Bond Index. Currently have 101,000 in VFIDX - Intermediate Investment Grade Corporate, and 71,000 in VFSUX - Short Term investment Grade on a portfolio of a million. After research I found that Total Bond Market (VBTLX) has an average maturity of over 9 years with earning less than the corporate bonds. That seems long to me. VBILX - Intermediate Bond Index seems like a possibility but that keeps me in one segment of the bond market. This is a rollover IRA which I won't be using for 6 more years.
I don't think there is anything wrong with your current plan. I'd stick with it.
by welderwannabe
Wed Jan 03, 2024 12:04 pm
Forum: Personal Investments
Topic: What are some good bond funds in taxable accounts
Replies: 9
Views: 1012

Re: What are some good bond funds in taxable accounts

You will definitely want some tax exempt funds then. At the very least funds that hold only US treasuries will be exempt from your state taxes, but you may even do better with NY municipal bond funds. So for simplicity sake, a short-term US treasury fund would be a much better choice than CDs because it will save you from state taxes. I agree with toddthebod here on US Treasurys. I would stay away from the Fidelity bond fund you're in, its not a great performer in taxable. As for munis, when you compare to check for TEY make sure you look at an year period. Some of the shorter muni funds and especially money markets are very cyclical with yield and if you pick a single 7/30 day SEC yield to make a comparison against your math may be off. F...
by welderwannabe
Tue Jan 02, 2024 12:27 pm
Forum: Personal Investments
Topic: Muni funds instead of "cash?"
Replies: 7
Views: 1354

Re: Muni funds instead of "cash?"

Look at your state tax too. You can do Treasurys (or a Treasury MM) and have most of the interest be state tax free. May come out ahead of bank money markets/HYSA.
by welderwannabe
Tue Jan 02, 2024 11:49 am
Forum: Personal Investments
Topic: BND or Stable fund
Replies: 106
Views: 10536

Re: BND or Stable fund

tibbitts wrote: Tue Jan 02, 2024 10:24 am BND is "universal" partly because many people don't have access to a Stable Value fund; you can't just run out and buy one in a brokerage account.
And for the last 15 years or so money markets have paid almost nothing...until very recently.
by welderwannabe
Mon Jan 01, 2024 3:11 pm
Forum: Personal Investments
Topic: Port Review for upcoming Job Loss
Replies: 18
Views: 2446

Re: Port Review for upcoming Job Loss

If I were in your shoes I'd reduce the cash dramatically, but still keep 2-3 years of expenses in cash until you can figure out where your income will really end up. You may need to pull from the cash to fund your lifestyle if your new income doesn't meet your needs. I'd invest the remainder into the Fidelity stock fund, FSKAX, you already have. Its a fine low expense fund. As to the bonds, reassess weathers muni's make sense based on your new income. If they don't make sense, I'd invest it in Fidelity's intermediate treasury fund FUAMX and you'll still get state tax benefits at least. If you discover you don't need 2-3 years expenses because your able to find a better job than you think, or you just aren't spending as much you can slowly s...
by welderwannabe
Sat Dec 30, 2023 3:01 pm
Forum: Investing - Theory, News & General
Topic: VWELX vs. VTMFX
Replies: 18
Views: 1730

Re: VWELX vs. VTMFX

35% tax bracket is on the bubble for munis when I've looked into it before (im in the same bracket), which VTMFX is loaded with. VTMFX is also > 50% bonds as thats some sort of requirement to get the tax advantage. Thats significantly more conservative than the fund you're in now.

If you want to do munis, maybe do 60% VTSAX and 40% VWITX Intermediate Muni fund.

Another one to look at is 60% VTSAX and 40% VSIGX Vanguard Intermediate-Term Treasury Index Fund. You'll get the state tax advantage of the Treasurys.
by welderwannabe
Wed Dec 27, 2023 12:20 pm
Forum: Personal Investments
Topic: Backdoor Roth / Treasuries in Taxable / Start SS ?'s
Replies: 8
Views: 520

Re: Backdoor Roth / Treasuries in Taxable / Start SS ?'s

Its fine to hold Treasurys in taxable. I don't see you'll have any other choice with a TIRA of only 900K, unless you are going to have a very very high stock percentage in retirement. If you filled up the entire TIRA with bonds, you would only have 20% of your assets in bonds. 80/20 is a little high for a retiree,

Keeping Treasurys in your TIRA has the advantage of tax sheltering the income...you won't pay taxes until you withdraw. However, it also has the drawback of losing the state tax exemption for them, as you pay state tax on IRA withdraws regardless weather the withdraw came from a stock or a Treasury.
by welderwannabe
Wed Dec 27, 2023 12:13 pm
Forum: Personal Investments
Topic: The Myth of "Owning the Market"
Replies: 84
Views: 12303

Re: The Myth of "Owning the Market"

You can always get an equal weight mutual fund/etf. Invesco has one, with an ER of only .2% (yes thats more than VFIAX/VOO but historically still a cheap ETF).

https://www.invesco.com/us/financial-pr ... ticker=rsp
by welderwannabe
Tue Dec 26, 2023 7:31 pm
Forum: Personal Investments
Topic: I am stuck with Fidelity Zero in brokage account with over 1.2M and 50% gain.
Replies: 76
Views: 13982

Re: I am stuck with Fidelity Zero in brokage account with over 1.2M and 50% gain.

edge wrote: Tue Dec 26, 2023 7:13 pm Shouldn’t worry. Fidelity is fine.

I had this happen once where I am stuck in ftse based total intl fund instead of msci. Minor inconvenience.
The ftse is a broader index versus msci. Gets down into smaller companies. Aside from a slightly higher fee at vanguard versus total international it's a fine choice. Some prefer it.
by welderwannabe
Tue Dec 26, 2023 3:01 pm
Forum: Personal Investments
Topic: How Safe Is Fidelity Treasury Money Market?
Replies: 32
Views: 4445

Re: How Safe Is Fidelity Treasury Money Market?

1. Institutional money market funds do not have a fixed NAV and are required to float. 2. Retail money market funds have a fixed NAV but they do not invest only in very safe assets. They also invest in commercial paper which is higher risk than government assets. These are often called "prime" funds. 3. Government money market funds have a fixed NAV but may only invest in government assets. These are the safest assets. All of the Vanguard money market funds are in this third category. #3 needs to be revised to state 'Federal government assets'. Municipal MM's are retail funds, but invest in state and local government debt. I'd also add that a government money market fund can invest in some non government transactions, such as com...
by welderwannabe
Tue Dec 26, 2023 12:51 pm
Forum: Personal Investments
Topic: Opening Joint Brokerage Account with Canadian Spouse
Replies: 3
Views: 281

Re: Opening Joint Brokerage Account with Canadian Spouse

Hi everyone, Long time lurker, first time posting. Thank you for all the valuable information over the years! I’m wondering if anyone has insight into tax implications when a US citizen opens a joint brokerage account with a Canadian spouse. Most information I find is vague and relates to a standard tax on dividends, and I’m unsure if this applies in our case. For context, my spouse is Canadian but does not hold any property or investments in Canada. They also do not have any Canadian income. We both are full-time US employees and have no plan to move to Canada in the future. Are you aware of how a joint account would be tax treated in this situation? Thank you so much There should not be any. I'm a canadian american dual citizen myself li...
by welderwannabe
Tue Dec 26, 2023 12:44 pm
Forum: Personal Investments
Topic: I am stuck with Fidelity Zero in brokage account with over 1.2M and 50% gain.
Replies: 76
Views: 13982

Re: I am stuck with Fidelity Zero in brokage account with over 1.2M and 50% gain.

I had a similar issue except I TLH'd into the VG S&P500 and extended market funds. Then I had a 50%+ gain, so I'm stuck there now.VTSAX would be easier than the 2 individual funds, but no biggue. Always TLH into something you can live with forever.
by welderwannabe
Tue Dec 26, 2023 12:34 pm
Forum: Personal Investments
Topic: How Safe Is Fidelity Treasury Money Market?
Replies: 32
Views: 4445

Re: How Safe Is Fidelity Treasury Money Market?

I usually keep 12 month emergency fund. Maybe excessive, I know, but brings me a lot of peace of mind with low job security and a lot of financial commitment (spouse, children, mortgage). In the past, I didn't think much of interest rates because it's been near 0 for most of my investment life, but with rates where they are now, I want to make sure I'm getting a good yield on my cash. I'm looking at Fidelity Treasury Money Market Fund (FZFXX), the current yield is 4.98%. How safe is this fund? In my case, the alternative would be Capital One 360 Savings at 4.35% because that's where I bank and I don't want to have more than 2 accounts (Fidelity and Capital One), so I don't want to keep making new savings accounts to keep up with high rates...
by welderwannabe
Tue Dec 19, 2023 4:03 pm
Forum: Personal Investments
Topic: Long term fixed income. Is it time?
Replies: 30
Views: 4335

Re: Long term fixed income. Is it time?

Im heavy into long bonds (30 year) and have been for quite sometime. Its part of my standard AA. I rode them on the way down, im gonna ride them on the way back up.

Not suggesting that in your case, but going into 10 year Treasurys (nominal or TIPS) is a good idea to get some income protection.
by welderwannabe
Tue Dec 19, 2023 3:37 pm
Forum: Investing - Theory, News & General
Topic: Disadvantages of Using SGOV as a savings account
Replies: 64
Views: 13468

Re: Disadvantages of Using SGOV as a savings account

whereskyle wrote: Sun Jan 15, 2023 8:21 am I've had my eye on SGOV for quite a while. It's a 1-3 month treasury bill ETF for 5 basis points (net). It's currently yielding more than 4%, and it seems like my convenient HYS account is sticking at 3.3%, so it seems I'm leaving 1% on the table. I'm wondering if I can realistically treat SGOV as my savings account.
Lots of tax entries on the forms for buy/sales. Possible loss when you sell (albeit small). Plenty of money markets investing in treasurys paying close to the same without those headaches.

However, nothing wrong with using it as a savings vehicle. I roll bills myself, same thing just not in an ETF.
by welderwannabe
Tue Dec 19, 2023 3:20 pm
Forum: Personal Investments
Topic: How would you define ‘cash’ ?
Replies: 60
Views: 7274

Re: How would you define ‘cash’ ?

Is "cash" an asset class? The return on cash (e.g. VUSXX, or a HYSA) can differ from, exceed, and be described in terms of correlation with assets in other classes (like bonds or bond funds) that you might consider "investments." If "cash" is an asset class, why are these assets not investments? If "cash" is not an asset class, why not and what is it? Webster's defines an investment as something you commit money to in order to earn a return. If Money=Cash, and I put that in a checking account, is it committed? Is it committed if in a money market? Does that make me an investor? When someone's says they are 'fully invested', whom would define that as being 100% in their checking account or HYSA? Not m...
by welderwannabe
Sun Dec 17, 2023 5:24 pm
Forum: Personal Investments
Topic: How would you define ‘cash’ ?
Replies: 60
Views: 7274

Re: How would you define ‘cash’ ?

VUSXX is cash, its a money market. In my portfolio I consider any fixed income that matures < 1 year cash.

Cash is not an investment.

The purpose of cash for me is to prevent me from selling my investments.

Everyone looks at things differently, but this is how I look at it.
by welderwannabe
Sun Dec 17, 2023 5:12 pm
Forum: Personal Investments
Topic: "One pot" vs. Retirement / Taxable split
Replies: 23
Views: 4109

Re: "One pot" vs. Retirement / Taxable split

After reading the last reply and thinking about it a bit more ... in my 401k there is no life strategy fund. So the target retirement fund feels fine. Instead of being 60/40 it seems like in my age group it is 40 + <your age - 40> as a percentage in stock, which is really fine. It represents 13% of my total portfolio, so if it has 15% more stocks than every other account then I don't think it will have a major impact on how my portfolio responds to market events. But in my various IRAs LifeStrategy 60/40 *is* an option. I suppose that this is what people mean when they talk about "mirroring" your AA between accounts. Should I consider doing that instead of using a target date retiremetn fund? It's probably too late to do that in ...
by welderwannabe
Sun Dec 17, 2023 1:07 pm
Forum: Personal Investments
Topic: "One pot" vs. Retirement / Taxable split
Replies: 23
Views: 4109

Re: "One pot" vs. Retirement / Taxable split

Im not a fan of Total Bond in taxable. I'd stick with either a muni fund or a treasury fund, that way you're getting either federal or state tax free money. Personally I stick with Treasurys in Taxable. While munis are slightly better for me, it only ends up being 10-20 basis points for my tax bracket...not worth it. This is especially true for muni money markets where their returns looks like a sine wave. There are times its better than a Treasury for me, times they are worse. I also do not look at my accounts as 'one big pot' as I'm planning on also drawing from taxable prior to 59 1/2. I keep my 'retirement' accounts 70/30, and my taxable 60/40. Yes, I realize I can sell bonds in my 401k and buy stocks in my taxable, or visa versa, to ke...
by welderwannabe
Mon Dec 11, 2023 7:05 am
Forum: Personal Investments
Topic: Christmas present = forced retirement
Replies: 128
Views: 20214

Re: Christmas present = forced retirement

My wife's 3,000+ employee fintech employer laid off ~25% of its staff last Monday, this was after laying off ~5% of its staff just last month. It shook her up a bit. My wife's team has gone from ~35 to 11 in the last month, and they are revenue generators. My employer (health products megacorp) quietly laid off ~5% of its staff (including several people I have worked closely with for years, at least 2 of whom were my employees in my previous position) in the last few weeks and we are the most financially healthy company in our industry. I have my end-of-year review with my boss tomorrow; not going to lie, there's a small pit in my stomach although there's about zero chance they'd let me go (so I assume). My mom does contract work on the si...
by welderwannabe
Mon Dec 11, 2023 6:57 am
Forum: Personal Investments
Topic: $250K to invest – SP500 vs. SPAXX vs. CD rates
Replies: 8
Views: 2086

Re: $250K to invest – SP500 vs. SPAXX vs. CD rates

I think 50/50 could make sense, but I like 60/40 better. I consider it an all weather set-and-forget asset allocation. Cash is fine for the 40% at the moment, but if we revert to the recent mean it won't yield much. I'd suggest putting the 40% at minimum in a treasury index fund. Generally I'd recommend Intermediate term fund such as FUAMX - Fidelity ® Intermediate Treasury Bond Index Fund, but if you're thinking if needing some of the money in 3-5 years, FUMBX Fidelity® Short-Term Treasury Bond Index Fund can also work. The former has a duration of about 6 years, the latter about 2.5-3 years. They both yield a bit less than SPAXX right now, but are 100% state tax exempt and you're also 'locking in' longer term rates than cash. If you do de...
by welderwannabe
Sun Dec 10, 2023 10:14 am
Forum: Personal Investments
Topic: VBTLX - Am I looking at this fund incorrectly for long term investing?
Replies: 60
Views: 8580

Re: VBTLX - Am I looking at this fund incorrectly for long term investing?

"an international fund that I dropped after a decade of negative returns. So, down to just VTSAX and VBTLX." Not for OP. Based on OP's record, he will drop VBTLX too after a decade of negative returns. My point is all we do on here is look at past performance. I see post after post on here of people dumping bonds and jumping into money markets due to the performance of the last 2 years. I see forum veterans suggesting people sell their other funds and jump into Vanguard funds because the ones they are in are higher ER or actively managed, and 'past performance' suggests that managed funds don't out perform passive over time. What we're really saying is we just don't want people to look at past performance for reasons that aren't ...
by welderwannabe
Sun Dec 10, 2023 9:11 am
Forum: Personal Investments
Topic: MMF vs. HYSA based on current interest rates?
Replies: 13
Views: 2441

Re: MMF vs. HYSA based on current interest rates?

Agree VG has the better money market funds. However if you have interest in a MMF that you can use like a checking account, have ATM/debit card access, Fidelity is the place to be. You will pay a small yield premium however.
by welderwannabe
Sun Dec 10, 2023 9:10 am
Forum: Personal Investments
Topic: VBTLX - Am I looking at this fund incorrectly for long term investing?
Replies: 60
Views: 8580

Re: VBTLX - Am I looking at this fund incorrectly for long term investing?

KlangFool wrote: Sat Dec 09, 2023 4:47 pm Fairness has nothing to do with it. Until someone understand not to judge something based on past performance, the same could happen to VTSAX too if it stays down for 10 years. Then, what should OP do? Sell VTSAX and buy VTIAX. Sell low and buy high again.
Except thats why we're all in VTSAX to begin with...its past performance.
by welderwannabe
Sat Dec 09, 2023 4:43 pm
Forum: Personal Investments
Topic: Which broker to use? F. S, VG [Fidelity, Schwab, Vanguard]
Replies: 79
Views: 10490

Re: Which broker to use? F. S, VG [Fidelity, Schwab, Vanguard]

About 50% of my assets is at Fidelity, the other 50% Vanguard. Fidelity's online experience is twice as good as Vanguard, with a lot more features, so I have to call Fidelity far less often than Vanguard. When I do need to call in with a question or to do something that I can't do online, I have had far better customer service at Fidelity than Vanguard. Fidelity reps generally seem more knowledgeable and better trained. I also have a Fidelity office near me which has helped with paperwork in the past, but they absolutely try to sell you stuff when you go in. As far as index funds go, Fidelity has far less of them but many are lower fee than Vanguard. Not by a ton. Vanguard has a lot more index fund choices...just International funds alone t...
by welderwannabe
Sat Dec 09, 2023 4:33 pm
Forum: Personal Investments
Topic: VBTLX - Am I looking at this fund incorrectly for long term investing?
Replies: 60
Views: 8580

Re: VBTLX - Am I looking at this fund incorrectly for long term investing?

I don't think dropping international or switching funds after sticking with it for 10 years is impulsive. Expecting someone to stay in a fund for their entire investing lifetime is a little unfair. Im still sticking with International, but I respect people who have decided to move on as a large case could be made that the S&P has enough foreign exposure already by the fact that most of the companies in it do business all over the world. As to an Intermediate bond fund like VBTLX, they are for portfolio ballast and not barn burning returns. I agree with the above poster that 65/35 is a decent allocation 5-6 years away from retirement. Personally I plan to stay at 60/40 all throughout retirement. I believe that anything less is too conser...
by welderwannabe
Tue Dec 05, 2023 8:56 pm
Forum: Personal Investments
Topic: fidelty money market fund choice
Replies: 14
Views: 3935

Re: fidelty money market fund choice

There is no reason to choose SPAXX over FDLXX, except that on occasion SPAXX yields more and FDLXX can't be a core position so you have to manually move money into it.
by welderwannabe
Tue Dec 05, 2023 1:58 pm
Forum: Personal Investments
Topic: Gold coins/platinum bars
Replies: 6
Views: 1247

Re: Gold coins/platinum bars

APMEX has gotten really expensive the last couple years. Their premiums are insane.

I still do some business with them, but have to call and demand a pricematch, which they do begrudgingly for their customers that have a large spend history. Even when they do price match, they only price match the premium over spot and somehow their spot quotes are often $10 more than others.

Another one ive had luck with and whose prices are better is Monument Metals https://monumentmetals.com/
by welderwannabe
Mon Dec 04, 2023 2:41 pm
Forum: Investing - Theory, News & General
Topic: What non-index fund investment made you a lot of money?
Replies: 141
Views: 26483

Re: What non-index fund investment made you a lot of money?

Investing in myself by going to trade school many years ago...
by welderwannabe
Mon Dec 04, 2023 2:40 pm
Forum: Investing - Theory, News & General
Topic: Is anyone concerned about missing out on long-term bonds, besides me?
Replies: 59
Views: 8774

Re: Is anyone concerned about missing out on long-term bonds, besides me?

Beensabu wrote: Sun Dec 03, 2023 7:13 pm No...

I rode 'em down, and rebalanced into them, and I'm gonna ride 'em back up dagnabbit!

Missed the first hill, but strapped in just in time to lose 11% in less than one month, and then more, and more... So many "maybe it's over now?" fake-outs...
Same here. Was a painful ride.
by welderwannabe
Sat Dec 02, 2023 10:33 am
Forum: Personal Investments
Topic: TIPS Fixed Income Exposure > FIPDX?
Replies: 15
Views: 1575

Re: TIPS Fixed Income Exposure > FIPDX?

scottj19707 wrote: Fri Dec 01, 2023 6:10 pm I'm considering diversifying the fixed income portion of my investment portfolio, by moving 50% of my current bond exposure (which is 100% in an AGG-equivalent "collective investment trust" in my 401k) into the following Fidelity mutual:

Fidelity® Inflation-Protected Bond Index Fund (FIPDX): https://fundresearch.fidelity.com/mutua ... /31635T104
I think its a great idea to get some inflation protection to your fixed income allocation when near or in retirement. The fund you selected is a great low fee choice, of intermediate duration. I say go for it.
by welderwannabe
Sat Dec 02, 2023 10:31 am
Forum: Personal Investments
Topic: Bond fund in taxable
Replies: 7
Views: 1779

Re: Bond fund in taxable

milktoast wrote: Fri Dec 01, 2023 9:41 pm I'm trying to decide between the following bond funds in taxable:
  • VBTLX - Total Bond Market. SEC yield 4.77%
  • VTEAX - Tax-Exempt Bond. SEC yield 4.21%
  • VAIPX - Inflation Protected Securities. SEC yield 2.43% + inflation.
Im not a fan of VBTLX in a taxable account at higher brackets.

I do see you left out nominal Treasurys, they are worth a look too as you won't get nailed for taxes on the imputed interest from the principal adjustments.

VBILX Vanguard Intermediate-Term Bond Index Fund Admiral Shares