Search found 577 matches

by welderwannabe
Sun May 20, 2018 9:42 am
Forum: Investing - Help with Personal Investments
Topic: $1,700,000 from family trust...
Replies: 59
Views: 7519

Re: $1,700,000 from family trust...

Yes, I knew you were suggesting it because of the FDIC insurance. My point is, this is inherited money and for various reasons it is often best to keep it in the name of the beneficiary, not transfer it to joint ownership which can have negative consequences in the event of a divorce, lawsuit or fo...
by welderwannabe
Sun May 20, 2018 9:39 am
Forum: Personal Finance (Not Investing)
Topic: Dave Ramsey it or keep low interest debt
Replies: 132
Views: 8060

Re: Dave Ramsey it or keep low interest debt

I have 3 debts as follows 20k car loan - 0% 38k car loan - 1.9% 226k mortgage - 3.625% Annual income 255k Fully funded emergency fund (6 months) This is largely an emotional decision. Mathematically, the $20K car loan will cost you money to pay it off as the money would earn more in a bank account....
by welderwannabe
Sun May 20, 2018 9:23 am
Forum: Investing - Help with Personal Investments
Topic: $1,700,000 from family trust...
Replies: 59
Views: 7519

Re: $1,700,000 from family trust...

OP inherited this money. Why is a joint account suggested by welderwannabe? Solely as a way to increase FDIC insurance at a given financial institution, which I think I stated pretty clearly. FDIC insurance is $250K per person on a joint account, so it would boost it to $500K. OP could also use ind...
by welderwannabe
Sun May 20, 2018 6:35 am
Forum: Investing - Help with Personal Investments
Topic: $1,700,000 from family trust...
Replies: 59
Views: 7519

Re: $1,700,000 from family trust...

Question 1: Upon receiving the trust funds should we put all of it into a Money Market acct. first off? Put it in a money market and take your time. You are well outside of FDIC insurance limits. If I was in your shoes I would stick $500K in a Capital One 360 or Ally savings account that is a JOINT...
by welderwannabe
Sun May 20, 2018 6:26 am
Forum: Investing - Theory, News & General
Topic: Larry Swedroe: No Need For Corp Bonds?
Replies: 38
Views: 3660

Re: Larry Swedroe: No Need For Corp Bonds?

In tax advantaged I am roughly 50% corporates and 50% Treasuries/CDs. My time horizon is pretty long, so I am not worried. As long as you didn't sell, people that stayed in corporates through 2009 ended up about even with treasuries by 2011 and better off from that point on. Below is a comparison of...
by welderwannabe
Sun May 20, 2018 6:11 am
Forum: Investing - Theory, News & General
Topic: Larry Swedroe: No Need For Corp Bonds?
Replies: 38
Views: 3660

Re: Larry Swedroe: No Need For Corp Bonds?

I have an interesting question, though. Does it make sense for non-resident aliens (NRAs) to invest in corporate bonds? NRAs are subject to 30% dividend tax for equities while bonds are tax free. I am an NRA and I only hold the total bond market and TIPS, though. Bonds are tax free? I thought that ...
by welderwannabe
Sat May 19, 2018 1:00 pm
Forum: Investing - Help with Personal Investments
Topic: Vangaurd Municipal Money Market VMSXX 1.39%
Replies: 76
Views: 7293

Re: Vangaurd Municipal Money Market VMSXX 1.39%

So if I were to look at Vanguard California Municipal Money Market Fund (VCTXX), the current SEC yield is 1.24%. Therefore, 1.24/0.557 = 2.23%. Since Marcus is generating 1.71%, the final rate would be 1.71 * 0.557 = 0.95%. So given this, it seems to make more sense to keep a big chunk of liquid ca...
by welderwannabe
Sat May 19, 2018 12:29 pm
Forum: Investing - Help with Personal Investments
Topic: Should Tax-Free Munis Be Part of Roth IRA?
Replies: 22
Views: 1135

Re: Should Tax-Free Munis Be Part of Roth IRA?

Not sure what you mean by 'So as to not max out the $5500 limit on Roth IRA' ? If what you mean is you want to keep your Roth 100% stocks, then that is a good idea. Keep your bonds outside of your Roth. I would prefer to keep them in a traditional 401k if you have one available to you. If not, munis...
by welderwannabe
Sat May 19, 2018 6:31 am
Forum: Investing - Help with Personal Investments
Topic: Intermediate Term Treasury vs Tax Exempt Fund
Replies: 29
Views: 2391

Re: Intermediate Term Treasury vs Tax Exempt Fund

I find TD far easier to buy bills and notes on than either Fidelity or Vanguard. The reason is they let you put in an order for an upcoming auction that hasn't been 'announced' yet...usually up to 2-3 months ahead. Fidelity and Vanguard doesn't do that, so you have to remember to log in and place yo...
by welderwannabe
Sat May 19, 2018 5:50 am
Forum: Investing - Help with Personal Investments
Topic: Vangaurd Municipal Money Market VMSXX 1.39%
Replies: 76
Views: 7293

Re: Vangaurd Municipal Money Market VMSXX 1.39%

No--you've got two mistakes that are throwing things off. Possibly 3, as a 29% tax rate doesn't exist in 2018 even after factoring in the possibility of NIIT. He used the word 'effective'. With something like this he/she really should be using his marginal rate to determine TEY and not an effective...
by welderwannabe
Fri May 18, 2018 8:04 pm
Forum: Investing - Theory, News & General
Topic: Bank Interest Rates — when will they go up?
Replies: 25
Views: 2782

Re: Bank Interest Rates — when will they go up?

Thanks for correcting my error. It's further proof that most people have difficulty conceptualizing millions and billions - which was the point I was attempting to make. :) What else are we all here for but to nitpick eachother's posts? I had to look at your post 2-3 times thinking it looked wrong ...
by welderwannabe
Fri May 18, 2018 8:02 pm
Forum: Investing - Help with Personal Investments
Topic: Intermediate Term Treasury vs Tax Exempt Fund
Replies: 29
Views: 2391

Re: Intermediate Term Treasury vs Tax Exempt Fund

What do you think that marginal l rate is far higher? I was trying to guess where you came up with 25%. Some people look at their effective rate and think that is their marginal rate. Since effective rate is basically all the brackets you passed through averaged together in a weighted fashion, if y...
by welderwannabe
Fri May 18, 2018 5:56 am
Forum: Investing - Theory, News & General
Topic: Bank Interest Rates — when will they go up?
Replies: 25
Views: 2782

Re: Bank Interest Rates — when will they go up?

Dead Man Walking wrote:
Thu May 17, 2018 11:21 pm
We must remember that a million minutes is about 12 days; a billion minutes is about 34 years.
I assume you meant a million seconds is 12 days?
by welderwannabe
Fri May 18, 2018 5:50 am
Forum: Investing - Help with Personal Investments
Topic: Vangaurd Municipal Money Market VMSXX 1.39%
Replies: 76
Views: 7293

Re: Vangaurd Municipal Money Market VMSXX 1.39%

I am planning on saving up for a house downpayment to be used anytime between now and the next 5 years Should I fill up my FDIC-insured savings account first even if it's at a tiny interest rate? Or just save for this downpayment in the Municipal Money Market fund (VMXXX)? We will be in the 37% bra...
by welderwannabe
Fri May 18, 2018 5:46 am
Forum: Investing - Help with Personal Investments
Topic: Intermediate Term Treasury vs Tax Exempt Fund
Replies: 29
Views: 2391

Re: Intermediate Term Treasury vs Tax Exempt Fund

There is no 25% Federal tax bracket that I am aware of, so I would double check your numbers. Are you looking at your marginal rate? If you are actually in the 24% bracket, the upper ends of that are subject to the 3.8% net investment tax too, so you would want to factor that in. If you are looking ...
by welderwannabe
Fri May 18, 2018 5:31 am
Forum: Investing - Help with Personal Investments
Topic: Cash instead of bonds for 3-fund
Replies: 22
Views: 2010

Re: Cash instead of bonds for 3-fund

28fe6 wrote:
Thu May 17, 2018 6:46 pm
Is this a terrible idea?
Any stable value options? They can often be a nice middle of the road between a MM and a bond fund.
by welderwannabe
Mon May 14, 2018 8:02 pm
Forum: Personal Finance (Not Investing)
Topic: Newb: Money Market Fund (VMSXX) vs high yield savings online banking for E-fund?
Replies: 15
Views: 2192

Re: Newb: Money Market Fund (VMSXX) vs high yield savings online banking for E-fund?

Thanks for the replies and good to know about the increase in Ally. Welderwannabe, your reply is terrific - that's what I want to hear! But now I need to know why so that I too can sleep like a baby!! The municipal money market is not 'risk free' but it is pretty close. Municipal debt has a long an...
by welderwannabe
Sun May 13, 2018 7:53 pm
Forum: Investing - Help with Personal Investments
Topic: Limited Term Muni vs Savings Bank
Replies: 17
Views: 1339

Re: Limited Term Muni vs Savings Bank

I think a better comparison is between Ally and the Vanguard Municipal Money Market VMSXX.

Don't rule out iBonds too, as long as you can have the money locked up for 1 year.
by welderwannabe
Sat May 12, 2018 1:12 pm
Forum: Investing - Theory, News & General
Topic: Muni Money Market funds starting to look good!
Replies: 139
Views: 24022

Re: Muni Money Market funds starting to look good!

The national fund is at 2.36% TEY right now as well, assuming the highest bracket plus net investment tax. Even at the 24% bracket, assuming you are at the upper end and paying the net investment tax is a TEY of 1.94%. I will continue to monitor the yield, but it will have to drop a lot more before ...
by welderwannabe
Fri May 11, 2018 7:52 pm
Forum: Investing - Theory, News & General
Topic: Ally online savings now at 1.60%
Replies: 172
Views: 26016

Re: Ally online savings now at 1.60%

Ally's Money market still .9%. Yech.
by welderwannabe
Sun May 06, 2018 6:53 am
Forum: Investing - Help with Personal Investments
Topic: Allocation to combine Dave Ramsey and Vanguard?
Replies: 79
Views: 6775

Re: Allocation to combine Dave Ramsey and Vanguard?

One must remember that Dave isn't a fan of bonds. However, he frequently recommends holding real estate (physical buildings, not REITSs). The cash flows from rental units can be very bondlike. In addition he also suggests everything be paid for in cash, which tends to cause his followers to hold a t...
by welderwannabe
Sat May 05, 2018 2:47 pm
Forum: Investing - Help with Personal Investments
Topic: Emergency Fund
Replies: 10
Views: 1349

Re: Emergency Fund

I keep my entire emergency fund in the Vanguard Municipal MM. I keep about 6 months of expenses in there, but in reality it is probably closer to 1 years worth. Depending on yield, and my estimated tax rate, I wouldn't hesitate to keep 3 months worth of expenses in a 3 month T-Bill in the same Vangu...
by welderwannabe
Fri May 04, 2018 8:11 am
Forum: Investing - Help with Personal Investments
Topic: Too much cash - what to do?
Replies: 16
Views: 2429

Re: Too much cash - what to do?

I am going to be contrarian and say you should buy the Townhouse with cash. Guaranteed 4.25% return.
by welderwannabe
Fri May 04, 2018 7:59 am
Forum: Investing - Theory, News & General
Topic: Don't leave your non-spouse heirs TIRAs with basis, unless you hate them!
Replies: 92
Views: 8272

Re: Don't leave your non-spouse heirs TIRAs with basis, unless you hate them!

dodecahedron wrote:
Fri May 04, 2018 7:56 am
The IRS has stated that it is generally acceptable to use zero as a basis even if the true basis is not zero.
I bet they would love it if everyone did that.
by welderwannabe
Thu May 03, 2018 10:16 am
Forum: Investing - Help with Personal Investments
Topic: Minimum portfolio size for individual treasury bonds
Replies: 10
Views: 892

Re: Minimum portfolio size for individual treasury bonds

I buy $1000 treasuries all the time. My total portfolio is $1.1M
by welderwannabe
Sat Apr 28, 2018 8:18 am
Forum: Local Chapters and Bogleheads Community
Topic: Post your Financial Milestone Announcements Here
Replies: 315
Views: 30967

Re: Paid Off Mortgage Today

I did that a few months ago. It is a great feeling. Congratulations! :beer :beer :beer
by welderwannabe
Fri Apr 27, 2018 5:02 pm
Forum: Investing - Theory, News & General
Topic: Ally online savings now at 1.60%
Replies: 172
Views: 26016

Re: Ally online savings now at 1.45%

Weak. I moved from Cap One to Ally a year or two ago to chase the better rate. I've since decided not to bother with further yield-chasing, but that doesn't make me feel any better having apparently settled on the wrong horse. True, it's not material really but annoying to me nonetheless. I am a cu...
by welderwannabe
Fri Apr 27, 2018 6:50 am
Forum: Investing - Theory, News & General
Topic: Ally online savings now at 1.60%
Replies: 172
Views: 26016

Re: Ally online savings now at 1.45%

Ally savings rate is up to 1.50% now. Their money market is still a paltry .90%.
by welderwannabe
Thu Apr 26, 2018 6:24 am
Forum: Investing - Help with Personal Investments
Topic: Allocation Debate - consider all accounts as one?
Replies: 22
Views: 1395

Re: Allocation Debate - consider all accounts as one?

I treat my tax deferred and taxable separately. This is due to the different time horizons I have on both of them. Of course. But if the taxable account is intended for retirement it should still be the same bucket. I made the assumption that that's what we were saying. Obviously money in accounts ...
by welderwannabe
Wed Apr 25, 2018 12:46 pm
Forum: Investing - Help with Personal Investments
Topic: Allocation Debate - consider all accounts as one?
Replies: 22
Views: 1395

Re: Allocation Debate - consider all accounts as one?

I treat my tax deferred and taxable separately. This is due to the different time horizons I have on both of them.
by welderwannabe
Mon Apr 23, 2018 7:31 pm
Forum: Investing - Help with Personal Investments
Topic: Another emergency fund allocation thread
Replies: 17
Views: 1347

Re: Another emergency fund allocation thread

Option number 3: Online savings account with competitive rate. Ally is offering 1.7%, Banco popular is at 2% right now. This option seems attractive as the rates are as high as the above options, there's no penalty for withdrawal, and it's liquid. I'm guessing these rates aren't locked in though? W...
by welderwannabe
Mon Apr 23, 2018 7:29 pm
Forum: Investing - Help with Personal Investments
Topic: Another emergency fund allocation thread
Replies: 17
Views: 1347

Re: Another emergency fund allocation thread

Im doing #2, but with Vanguard directly and with Vanguard checks. Plenty liquid for me.
by welderwannabe
Sun Apr 22, 2018 4:55 pm
Forum: Investing - Help with Personal Investments
Topic: Anyone in high bracket using short or Ltd. term muni for EF?
Replies: 19
Views: 868

Re: Anyone in high bracket using short or Ltd. term muni for EF?

Municipal money market fund is 1.52% right now. Not sure how long that will hold, but its hard to beat at the moment. With rates moving higher, not sure why you say that? Because the Municipal money market yield seems unusually high right now as compared to the federal MM or the prime money market....
by welderwannabe
Sun Apr 22, 2018 2:35 pm
Forum: Investing - Help with Personal Investments
Topic: Savings Account Options for Non-Profit Organization
Replies: 4
Views: 537

Re: Savings Account Options for Non-Profit Organization

Vanguard brokerage account and stick it in the Federal Money Market. Earns over 1.5%.
by welderwannabe
Sun Apr 22, 2018 2:15 pm
Forum: Investing - Help with Personal Investments
Topic: Anyone in high bracket using short or Ltd. term muni for EF?
Replies: 19
Views: 868

Re: Anyone in high bracket using short or Ltd. term muni for EF?

Municipal money market fund is 1.52% right now. Not sure how long that will hold, but its hard to beat at the moment.
by welderwannabe
Fri Apr 20, 2018 9:51 am
Forum: Investing - Theory, News & General
Topic: Where to find call dates for bonds in Vanguard Bond Funds
Replies: 19
Views: 974

Re: Where to find call dates for bonds in Vanguard Bond Funds

If I remember the annual report has that stuff, but it is a rear view look. Should give you a good idea though.
by welderwannabe
Fri Apr 20, 2018 7:00 am
Forum: Investing - Theory, News & General
Topic: Credit Rating of Ally Bank?
Replies: 6
Views: 983

Re: Credit Rating of Ally Bank?

Ally is the new name for GMAC. They got into some trouble in 2008/2009 and had to take some bailout money if memory serves. FDIC insurance may be more than $250K. A joint account is protected at $500K ($250K per account holder). Banks don't pay enough on deposits to justify keeping money that exceed...
by welderwannabe
Fri Apr 20, 2018 6:40 am
Forum: Investing - Help with Personal Investments
Topic: Brokered CD Interest Compounding
Replies: 13
Views: 1650

Re: Brokered CD Interest Compounding

Brokered CDs have no provision for reinvestment of interest. The interest is paid to your sweep account. So, they pay simple interest at the quoted rate. However, in the cases cited above, some pay monthly and some semiannually. Yes, I am aware of that. I just wanted to make sure that you understoo...
by welderwannabe
Thu Apr 19, 2018 8:09 pm
Forum: Investing - Help with Personal Investments
Topic: Brokered CD Interest Compounding
Replies: 13
Views: 1650

Re: Brokered CD Interest Compounding

Vanguard has 2 year CDs at 2.65% that pay interest semiannually and 2.60% that pay interest monthly. Assuming the interest payments go into the sweep account that pays 1.55%, which CD yields the most considering the compounding of the interest in the sweep account? Similarly, 3 year CDs at 2.85% pa...
by welderwannabe
Thu Apr 19, 2018 8:03 am
Forum: Investing - Theory, News & General
Topic: Lack of FDIC Insurance a big deal?
Replies: 39
Views: 3763

Re: Lack of FDIC Insurance a big deal?

I moved my short term savings to vanguard municipal money market 2 weeks ago...but my tax rate is atrocious this year so it made a lot of sense for me.

I keep 6 weeks of expenses in an Ally money market in case Vanguard has technical problems.
by welderwannabe
Mon Apr 16, 2018 8:55 am
Forum: Investing - Help with Personal Investments
Topic: 59 1/2 - 401K, 403b, etc.
Replies: 4
Views: 564

Re: 59 1/2 - 401K, 403b, etc.

Seems like a lot of work to me. Instead of that, consider rolling your i401k to Fidelity. That's what I did when I got tired of Vanguard's silly restrictions on their i401k product.

I still have 30% of my net worth at Vanguard, just not my 401k.
by welderwannabe
Mon Apr 16, 2018 8:51 am
Forum: Investing - Help with Personal Investments
Topic: What to do about withdrawal this year if market doesn't go up?
Replies: 32
Views: 3050

Re: What to do about withdrawal this year if market doesn't go up?

I'm new to making retirement withdrawals from my 401k. This year is looking like 2015, where the market only went up 1%. Unlike others on the board, I need to withdraw some from my 401k as my pension is only 6000 a year and I need 50k. I see three options, first withdrawal from principle, 2nd pull ...
by welderwannabe
Mon Apr 16, 2018 8:49 am
Forum: Investing - Help with Personal Investments
Topic: "Safe" funds for a life insurance proceeds
Replies: 15
Views: 1099

Re: "Safe" funds for a life insurance proceeds

Treasury bills. CDs. Vanguard prime money market. At her low income I don't think municipal bonds, funds, or municipal money markets is worth it.
by welderwannabe
Sat Apr 14, 2018 10:13 am
Forum: Investing - Theory, News & General
Topic: 2-year AA Munis at Vanguard and Fidelity Today
Replies: 134
Views: 8933

Re: 2-year AA Munis at Vanguard and Fidelity Today

Some munis are subject to AMT and some arent. Usually the 'private activity municipal bonds' are the ones you have to watch out for. They are often for sports stadiums and the like. I believe some hospital bonds can fall into this category.

Regular GO munis you should be all set.
by welderwannabe
Fri Apr 13, 2018 9:57 am
Forum: Investing - Theory, News & General
Topic: Parking Business Cash - WHERE?
Replies: 21
Views: 2694

Re: Parking Business Cash - WHERE?

Which MM fund are you able to use with a business name? My experience, within the last year or so, is I have a Federal MM fund as the settlement account for my LLC at Vanguard. I tried to open a Prime MM or state specific MM fund under the same account and was unable to do so. The language in the l...
by welderwannabe
Fri Apr 06, 2018 11:42 am
Forum: Investing - Help with Personal Investments
Topic: Series I Bonds in April/May 2018
Replies: 66
Views: 7494

Re: Series I Bonds in April/May 2018

I'm considering buying in November/December, as I expect interest rates to rise further and I would plan to hold these long term. I'm trying to figure out what to do with the money in the meantime, and deciding if there are options I should take other than I Bonds for this money. (This will be my f...
by welderwannabe
Tue Apr 03, 2018 11:04 am
Forum: Investing - Theory, News & General
Topic: CDOs are back! How to spot them in fund holdings?
Replies: 10
Views: 2417

Re: CDOs are back! How to spot them in fund holdings?

There is really nothing wrong with CDOs. Having tranches of various priorities can be a help to investors. The real issue was the underwriting standards and the lack of effective ratings by the ratings agencies. The real problem was taking a bunch of subprime crap, putting them in a CDO, and then th...
by welderwannabe
Mon Apr 02, 2018 12:43 pm
Forum: Investing - Help with Personal Investments
Topic: Short-term Treasury bills while we move and re-allocate portfolio
Replies: 16
Views: 1414

Re: Short-term Treasury bills while we move and re-allocate portfolio

Could you explain a little about what autorolling is? Wouldn't you want to pick them yourself rather than something automatic? One of the advantages of Treasuries is that they are very liquid and are usually sold with tight spreads...so it isn't a major deal to auto-roll especially if you are stick...