Search found 856 matches

by welderwannabe
Sun Feb 17, 2019 7:42 am
Forum: Personal Investments
Topic: Help me with the Trad vs Roth 401k Math
Replies: 79
Views: 2161

Re: Help me with the Trad vs Roth 401k Math

I don't want to hit the third rail of politics here, but tax rates are pretty low right now. Are they going to stay this low forever? I don't think so.

Therefore I have started to split my contributions 50% ROTH 50% Traditional.
by welderwannabe
Sat Feb 16, 2019 4:50 pm
Forum: Personal Investments
Topic: beginner needing help saving for 15 year emergency expense
Replies: 8
Views: 938

Re: beginner needing help saving for 15 year emergency expense

Something around 99% of the loan forgiveness applications have been denied, so I wouldn't be hanging my hat on that...at least not for a few more years until you can see how it shakes out.

https://www.npr.org/2018/10/17/65385322 ... stleblower
by welderwannabe
Sun Feb 10, 2019 4:25 pm
Forum: Personal Investments
Topic: Which fixed income ? Total Bond, Treasury, Inflation Protected
Replies: 32
Views: 2380

Re: Which fixed income ? Total Bond, Treasury, Inflation Protected

If 500k is in tax sheltered account (e.g. TIRA) I'd opt for 1/2 in Intermediate Treasuries and 1/2 in Total Bond Fund. I like Treasury exposure for flight to quality times i.e. 2008 when everything seemed to be failing. Total Bond Index includes a large allocation to Treasury bonds. Exactly. Since ...
by welderwannabe
Sat Feb 09, 2019 9:34 pm
Forum: Personal Investments
Topic: VUSXX vs FDIC insurance
Replies: 18
Views: 1232

Re: VUSXX vs FDIC insurance

There's a lot of confusion on this point. First, to be clear, the risks are minuscule, so the debate is largely academic. But though people commonly say that Treasuries are "safer" than an FDIC-insured bank account, I believe that is technically a mistake. You are correct for the first $250K. After...
by welderwannabe
Sat Feb 02, 2019 8:31 pm
Forum: Personal Investments
Topic: Ally Bank's nightmarish online reviews -- should I be worried?
Replies: 97
Views: 8713

Re: Ally Bank's nightmarish online reviews -- should I be worried?

"I did a wire transfer using your Zelle service which never arrived at its intended destination. I've spoken with 6 different customer service reps, and not only do they flatly deny there is anything i can do, but they also give me conflictive information. I've clearly explained i want a trace back...
by welderwannabe
Sat Feb 02, 2019 12:31 pm
Forum: Personal Investments
Topic: Making a 3.8 million deposit
Replies: 96
Views: 10431

Re: Making a 3.8 million deposit

You'll probably have trouble 'transferring' that much money at once using a standard ACH. At those sums you will probably want to wire it. If you do want it in the bank and not Vanguard as many above suggested, look into CDARS. It will put your money into multiple CDs across multiple banks keeping y...
by welderwannabe
Sun Jan 27, 2019 6:49 pm
Forum: Investing - Theory, News & General
Topic: Emergency Fund
Replies: 24
Views: 2300

Re: Emergency Fund

I like to have my emergency fund separated from my main bank. Just in case Ally bank gets hacked or my account Ally gets hacked/closed. I have a 3 Tier EFund: 1) I keep $500 in a local credit union 5 minutes from my house (no interest) 2) I keep $20K in a combination of Vanguard Federal MM and some ...
by welderwannabe
Sun Jan 27, 2019 6:43 pm
Forum: Personal Investments
Topic: Moving from national to state tax-exempt muni bonds: VWLTX to VCITX
Replies: 19
Views: 699

Re: Moving from national to state tax-exempt muni bonds: VWLTX to VCITX

I'm 34. I'm hoping to retire by 50. Bond is mostly for safety (I also sometimes use it to buy stocks in market downturn). What is the credit risk involved, are you referring to the fact that states can bankrupt and state-specific bond funds are therefore have higher credit risk? Some people do have...
by welderwannabe
Wed Jan 23, 2019 10:45 pm
Forum: Personal Investments
Topic: Best way to hold your emergency fund?
Replies: 19
Views: 1553

Re: Best way to hold your emergency fund?

however it seems to be lagging behind Ally's return rate (last year Ally returned 2%, while VMFXX returned 1.95%), despite being slightly more risky (under the assumption FDIC insured deposits are the safest possible asset). So we'll have to find something that yields higher than 2% to compensate f...
by welderwannabe
Sun Jan 20, 2019 12:13 pm
Forum: Personal Investments
Topic: VNYTX: Municipal Bond Fund
Replies: 5
Views: 612

Re: VNYTX: Municipal Bond Fund

Not sure what your net worth is, but that is a lot of money tied up into longer term bonds of a single state...especially one like New York with some fiscal issues. It could be a lot of concentrated risk. If its a small percentage of your net worth then it doesn't matter, but if it is a large percen...
by welderwannabe
Wed Jan 16, 2019 6:16 pm
Forum: Investing - Theory, News & General
Topic: John Bogle has died at age 89
Replies: 856
Views: 49299

Re: John Bogle is dead at 89

Such sad news.
by welderwannabe
Sun Jan 13, 2019 12:19 pm
Forum: Personal Investments
Topic: Investing in SEP IRA
Replies: 4
Views: 238

Re: Investing in SEP IRA

As it happens, my nephew asked me the same question on Friday. My answer: 1. A single balanced fund is fine. Choose a fund that has an asset allocation (between stocks and bonds) that meets your risk tolerance and investment length. He is young, his career is in a high-demand field, and he doesn't ...
by welderwannabe
Sun Jan 13, 2019 8:03 am
Forum: Personal Investments
Topic: Vanguards recommends investors to increase international (non-US) stock holdings to 40% ?
Replies: 125
Views: 11495

Re: Vanguards recommends investors to increase international (non-US) stock holdings to 40% ?

What are your thoughts on this? Is it a legitimate prediction by Vanguard that international funds would outperform US funds? Which international fund(s) would you pick? I do not have a good international funds option in my 401K, so if I were to use all my roth IRA ($6k) to pick one international f...
by welderwannabe
Fri Jan 11, 2019 3:56 pm
Forum: Personal Investments
Topic: Cash deposit to VMMXX / distribution timing
Replies: 5
Views: 282

Re: Cash deposit to VMMXX / distribution timing

Thanks, didn't realize I'd get credit the same day I started the transfer if I do it from Vanguard. It doesn't sound like the wire would help. The ACH is pretty fast anyways. Yesterday I did a buy of a Vanguard Federal MM using my Ally account as the source. Ally had posted the ACH pull from vangua...
by welderwannabe
Fri Jan 11, 2019 3:52 pm
Forum: Personal Investments
Topic: Cash deposit to VMMXX / distribution timing
Replies: 5
Views: 282

Re: Cash deposit to VMMXX / distribution timing

Also, don't know what your plans are or how much this is, but when you do a 'buy' from Vanguard and pick one of your linked bank accounts as a source the fund is bought when they settle up that night. You start earning the next day even if VG hasn't gotten the funds yet. Im not sure a wire xfer woul...
by welderwannabe
Fri Jan 11, 2019 3:50 pm
Forum: Personal Investments
Topic: Cash deposit to VMMXX / distribution timing
Replies: 5
Views: 282

Re: Cash deposit to VMMX / distribution timing

They are paid monthly but accrued daily. The sooner the money is there the sooner you start earning. :moneybag
by welderwannabe
Thu Jan 03, 2019 2:50 pm
Forum: Personal Investments
Topic: Lending Club
Replies: 18
Views: 1415

Re: Lending Club

willthrill81 wrote:
Thu Jan 03, 2019 2:49 pm

For a 4.5% nominal return, my current return for an account established just over two years ago, it's just not worth it.
Agreed. I am almost at a negative return.
by welderwannabe
Thu Jan 03, 2019 2:48 pm
Forum: Personal Investments
Topic: Money market funds
Replies: 16
Views: 1763

Re: Money market funds

retiringwhen wrote:
Thu Jan 03, 2019 9:56 am

The Fidelity CMA feature costs about 30bp. If it is worth it to you, then you are making a good choice.
I havent calculated that in a bit, but slightly less since I use the Fidelity premium fund with a $100K buyin.

However your point is taken and correct.
by welderwannabe
Thu Jan 03, 2019 9:38 am
Forum: Personal Investments
Topic: Money market funds
Replies: 16
Views: 1763

Re: Money market funds

Vanguard's Federal Money Market (VMFXX) has an 0.11% ER and has very competitive rates especially if you can take high State Tax rate deduction. Agreed, its a good fund. Only thing that would make it better is if it was a Fidelity fund. I like Fidelity's cash management account too much to use Vang...
by welderwannabe
Fri Dec 28, 2018 12:27 pm
Forum: Personal Investments
Topic: Help! Retirement contribution options?
Replies: 10
Views: 462

Re: Help! Retirement contribution options?

1) to roll over my current IRA (~400k) completely to my 401k 2) contribute to that same IRA with post tax money - $5500 max? 3) convert that to Roth IRA? (Backdoor Roth) #1 As long as you like your 401k plan, then yes #2 Doesnt have to be the same IRA. You can open a new traditional IRA at VG or Fi...
by welderwannabe
Fri Dec 28, 2018 11:53 am
Forum: Personal Investments
Topic: Help! Retirement contribution options?
Replies: 10
Views: 462

Re: Help! Retirement contribution options?

With a 400K traditional IRA balance a backdoor Roth is going to sting a bit due to the Prorata rule...unless your 401k takes incoming rollovers from IRAs.
by welderwannabe
Tue Dec 25, 2018 2:34 pm
Forum: Personal Consumer Issues
Topic: Fiber cable on front lawn
Replies: 44
Views: 4584

Re: Fiber cable on front lawn

File an online complaint with the FCC. You wouldn't believe the attention those things get inside of communication companies. I work for one, so thats how I know.

Are you sure it is Centurylink glass?
by welderwannabe
Tue Dec 25, 2018 2:22 pm
Forum: Personal Consumer Issues
Topic: How much to budget for Luxury Vinyl Floors Upstairs?
Replies: 14
Views: 1272

Re: How much to budget for Luxury Vinyl Floors Upstairs?

Too many variables. There is floating LVT. LVT with adhesive on the back. LVT that is glued down with a separate adhesive. LVT that is grouted.

Price varies with all of them.

I did floating and am not happy. I have seen glued/grouted and it has held up well.
by welderwannabe
Tue Dec 25, 2018 2:15 pm
Forum: Personal Consumer Issues
Topic: That Extravagant Thing You Do
Replies: 411
Views: 59076

Re: What NON frugal thing did you do today?

HockeyFan99 wrote:
Tue Dec 25, 2018 2:04 pm
Purchased Die Hard on Amazon, rather than renting it, because my wife was in the mood for a “holiday movie” and I told her I would “pick us a classic.”
I did the exact same thing. She actually ended up enjoying it.
by welderwannabe
Tue Dec 25, 2018 9:11 am
Forum: Personal Investments
Topic: Vanguard California Muni Bond safety in downturns?
Replies: 19
Views: 1503

Re: Vanguard California Muni Bond safety in downturns?

carolinaman wrote:
Tue Dec 25, 2018 8:08 am
This is a great recent article by Larry Swedroe on muni bonds. It focuses on all munis and does not address California specifically, but he does have a strong opinion about munis in general.
https://thebamalliance.com/blog/play-it ... muni-land/
Great article. Thanks for sharing!
by welderwannabe
Sat Dec 22, 2018 9:39 pm
Forum: Personal Investments
Topic: Should I put another $5500 in the Market on January first for my ROTH IRA?
Replies: 29
Views: 3618

Re: Should I put another $5500 in the Market on January first for my ROTH IRA?

Hey all, this year I put my 5500 dollars in for the first time ever in a target date retirement fund. I am wondering if since the market is down pretty bad these days, if I should put my max contribution in the first of the year to get it done with. I am 24 years old and I do have enough money liei...
by welderwannabe
Sat Dec 22, 2018 2:33 pm
Forum: Personal Investments
Topic: what to do with cash if very risk averse?
Replies: 59
Views: 5633

Re: what to do with cash if very risk averse?

Econ1 wrote:
Fri Dec 21, 2018 2:07 pm
American Express has a 2.75% money market. Easy to invest or remove cash.
You have a link for this product? I can't find it. I just see a 2.1% high yield savings.
by welderwannabe
Sun Dec 16, 2018 5:47 pm
Forum: Personal Investments
Topic: House all of my bond contributions in 401K? Viability of 401K
Replies: 6
Views: 438

Re: House all of my bond contributions in 401K? Viability of 401K

Its up to you really. With some minor exceptions, I keep all my accounts as a 'mini three fund portfolio' as you put it. Its easier for me to keep everything in line that way.

However, in theory you are better off to keep all bonds in your 401k and all your stocks in taxable.
by welderwannabe
Fri Dec 14, 2018 9:54 am
Forum: Personal Finance (Not Investing)
Topic: 20 Year Guaranteed Term Non Smoker Life Insurance
Replies: 14
Views: 727

Re: 20 Year Guaranteed Term Non Smoker Life Insurance

Is he outside of the 20 year period and the price is increasing? Many terms let you keep it past the 'term' but the rate goes up every year and usually astronomical. If so the premium might be $12K next year...
by welderwannabe
Sun Dec 09, 2018 3:42 pm
Forum: Investing - Theory, News & General
Topic: Target Life Strategy Moderate 60/40 in Taxable? Options to simplify
Replies: 14
Views: 1260

Re: Target Life Strategy Moderate 60/40 in Taxable? Options to simplify

welderwannabe, Please note that a fair amount of his savings would be in the tax-advantaged accounts. KlangFool I didn't read that into the OP's post. I read that we should assume tax deferred is already maxed out and he/she has $200K sitting in cash, and is saving an additional $100K per year (50%...
by welderwannabe
Sun Dec 09, 2018 1:55 pm
Forum: Investing - Theory, News & General
Topic: Target Life Strategy Moderate 60/40 in Taxable? Options to simplify
Replies: 14
Views: 1260

Re: Target Life Strategy Moderate 60/40 in Taxable? Options to simplify

Why doesn't Vanguard have a Target Life / Tax fund where they keep everything on the bond side in tax free muni bonds or something like: Vanguard Intermediate-Term Tax-Exempt Fund Admiral Shares (VWIUX) I believe a fund has to be at least 50% municipal income to keep its federal tax exemption. So V...
by welderwannabe
Sun Dec 09, 2018 12:24 pm
Forum: Personal Investments
Topic: Simple Plan for Money Needed in 18 months to 7 Years
Replies: 11
Views: 1822

Re: Simple Plan for Money Needed in 18 months to 7 Years

We have a taxable account which is 100% in Fidelity Money Market Fund (SPRXX). How much is in SPRXX? If $100K move it to FZDXX which is the premium version of that fund and pays out an extra 12bp. Once you have the $100K, the fund can sink to as low as $10K. I moved some of my emergency fund to get...
by welderwannabe
Sun Dec 09, 2018 12:03 pm
Forum: Personal Investments
Topic: 20M Inheritance - What is best option for small/no risk on principal?
Replies: 93
Views: 12140

Re: 20M Inheritance - What is best option for small/no risk on principal?

Why not just stick it in Vanguard's Treasury MM fund for a while?
by welderwannabe
Sat Dec 01, 2018 9:36 pm
Forum: Personal Investments
Topic: How much will my T-Note be worth?
Replies: 14
Views: 1090

Re: How much will my T-Note be worth?

Thanks. So settlement date (i.e. 12/3/18) is really the first day it starts to earn interest, not purchase date (11/30/18)? Yes, Interest starts to accrue on the settlement date. The money will sit until your core account/settlement fund until the settlement date so you don't have a period without ...
by welderwannabe
Sat Dec 01, 2018 10:23 am
Forum: Personal Investments
Topic: How much will my T-Note be worth?
Replies: 14
Views: 1090

Re: How much will my T-Note be worth?

If I buy a T-Note today on the Vanguard site that has maturity date 12/31/2018, settlement date 12/3/18, face value $19,000, Principal $18,991.84, Accrued interest $120.82, Accrued no. of days 156, Net amount $19,112.66, price 99.957, yield to maturity and yield to worst 2.053, coupon 1.50, pay fre...
by welderwannabe
Sun Nov 25, 2018 10:37 am
Forum: Investing - Theory, News & General
Topic: Do you need to invest mostly in stocks to get rich?
Replies: 178
Views: 17422

Re: Do you need to invest mostly in stocks to get rich?

StormShadow wrote:
Wed Nov 21, 2018 10:30 pm
CULater wrote:
Wed Nov 21, 2018 5:59 pm
Do you need to invest mostly in stocks to get rich?
No, you need to save more than you spend to get rich.
+1

Often overlooked.
by welderwannabe
Sun Nov 25, 2018 10:35 am
Forum: Personal Investments
Topic: Roth Conversion for Spousal IRA
Replies: 12
Views: 736

Re: Roth Conversion for Spousal IRA

As a follow-up to the OP [and others], if neither tIRA has any basis, why prefer converting funds from one over the other? I assume the OP is married filing jointly. I am sure I am missing something, but why wouldn't either tIRA has a basis? Since these are non deductible IRAs, its basis should be ...
by welderwannabe
Sun Nov 25, 2018 7:18 am
Forum: Personal Investments
Topic: Helping Friend move from Northwest Mutual IRA
Replies: 6
Views: 678

Re: Helping Friend move from Northwest Mutual IRA

Questions: 1. Assume no fees or cancellation penalty to move to Vanguard IRA account? 2. Hard to understand but does she pay front-end load, an annuity annual load and mutual fund fees? 3. Is there a valid reason to have a Variable Annuity Fund within an IRA? She said never talks to her advisor; an...
by welderwannabe
Sat Nov 24, 2018 8:16 am
Forum: Personal Investments
Topic: Asset allocation for $5,500
Replies: 8
Views: 1109

Re: Asset allocation for $5,500

Is there a better way to accomplish my goals or are ETF's the way to go to fill in the $5,500 that I want to spend to max my IRA? Yes, I think there is. Just stick the $5500 in Vanguard LifeStrategy Growth Fund (VASGX) https://investor.vanguard.com/mutual-funds/profile/VASGX It is close to your des...
by welderwannabe
Thu Nov 22, 2018 11:01 am
Forum: Personal Investments
Topic: 5 Funds
Replies: 19
Views: 2054

Re: 5 Funds

I keep 50% of my bonds on short term corporates and the other 50% in intermediate term treasuries.
by welderwannabe
Wed Nov 21, 2018 7:21 am
Forum: Investing - Theory, News & General
Topic: What to do when you have Less than 100K ? say just 50k
Replies: 36
Views: 4141

Re: What to do when you have Less than 100K ? say just 50k

I have the unfortunate position of being in my 30s and having saved up only 50 due to some stupid financial decisions including day trading etc, but i m wiser now. My question is that since i am at 50k, being in a portfolio with a "buffer" with bonds / commodities doesn't make sense to me because a...
by welderwannabe
Tue Nov 20, 2018 8:41 pm
Forum: Personal Investments
Topic: Bear Check-Up
Replies: 15
Views: 2150

Re: Bear Check-Up

I am not seeing your posted 5-year returns. Morningstar reports the following 5-year returns: Blackrock LifePath Index 2050 (LIPKX) - 6.94 Vanguard Target Retirement 2050 (VFIFX) - 6.77 Should I be concerned? Is there a way to see how much it has changed over the years? Morningstar reports 5% turno...
by welderwannabe
Tue Nov 20, 2018 2:28 pm
Forum: Personal Investments
Topic: Bear Check-Up
Replies: 15
Views: 2150

Re: Bear Check-Up

1. Should I be contributing to the Traditional 403b or the Roth 403b? I have both a Traditional 403b and a Roth 403b available. I had previously saved everything into the Traditional 403b. Last year, I switched to the Roth 403b due to the lower tax brackets however the significant company match aut...
by welderwannabe
Sun Nov 18, 2018 9:21 am
Forum: Personal Investments
Topic: Do 401k/403b/457b balances count toward backdoor ROTH pro rata rule?
Replies: 1
Views: 186

Re: Do 401k/403b/457b balances count toward backdoor ROTH pro rata rule?

401k's, 457 and 403b are not part of the calculation for a roth conversion. It is only IRAs that matter, as the government considers all of your IRA accounts that you have as 1 big IRA. You can download IRS Form 8606 at https://www.irs.gov/pub/irs-prior/f8606--2017.pdf . The form asks you to "Enter ...
by welderwannabe
Sun Nov 18, 2018 7:45 am
Forum: Investing - Theory, News & General
Topic: Ally just raised Online Savings accounts to 2% APY
Replies: 66
Views: 6688

Re: Ally just raised Online Savings accounts to 2% APY

Ally's savings account is competitive. While not always the highest, their customer service and features more than make up for it for me. I will take a few basis point hit. My largest complaint continues to be how far behind their money market accounts are. Still only paying .9% on balances < $25k. ...
by welderwannabe
Sat Nov 17, 2018 7:02 pm
Forum: Personal Investments
Topic: 37 year old requests assistance with questions at end.
Replies: 8
Views: 1390

Re: 37 year old requests assistance with questions at end.

Just moved from 10% small cap to 20%. Think I would like to get a little heavier. Perhaps a little too heavy. Only 1 bond fund available. THoughts?? State Street U.S. Bond Index Fund - Class A .012 ER Nice cheap bond index fund based on the Bloomberg Barclays U.S. Aggregate Bond Index. If you want ...
by welderwannabe
Fri Nov 16, 2018 11:02 am
Forum: Personal Investments
Topic: total US bond fund for Fidelity account holders
Replies: 6
Views: 751

Re: total US bond fund for Fidelity account holders

AGG and FXNAX track the same index.

However FXNAX has half the expense ratio. Stay with FXNAX. Its fine.
by welderwannabe
Wed Nov 14, 2018 3:41 pm
Forum: Investing - Theory, News & General
Topic: Is there CD funds in VG to be used for IRA's?
Replies: 23
Views: 2348

Re: Is there CD funds in VG to be used for IRA's?

Buying a treasury at Vanguard in your IRA is easy. Just make sure you have money in your settlement fund. Then you put your buy order in whenever the auction announcement date is. Its a 2 minute process. Hardest part is making sure you remember to put the order in between the announcement date and t...
by welderwannabe
Wed Nov 14, 2018 3:33 pm
Forum: Personal Investments
Topic: Brand New to Boggleheads, Thoughts on my stocks?
Replies: 12
Views: 835

Re: Brand New to Boggleheads, Thoughts on my stocks?

Hey all, I'm a 21 year old college student. I work as a part-time student assistant so my income is hardly anything. I was speaking with an older coworker about stocks as I just got into the market and I'm trying to learn. So far, I've invested around $800. Warren Buffett advises to invest in what ...