Search found 164 matches

by miket29
Tue May 12, 2020 2:28 pm
Forum: Personal Investments
Topic: Invest or Pay Down Mortgage?
Replies: 14
Views: 904

Re: Invest or Pay Down Mortgage?

if you pay off the mortgage in 3 years then $50K of debt will cost you roughly $5K at 3.3% interest before tax, somewhat less after-tax since it is deductible if you can itemize. This is offset by the return from whatever you do with the $50K (use it to invest, buy more bonds, etc).
by miket29
Tue May 12, 2020 10:39 am
Forum: Personal Investments
Topic: DH Laid Off - can we retire early?
Replies: 40
Views: 4916

Re: DH Laid Off - can we retire early?

relying on your assets only it may not work out. You need a 5-6% withdrawal rate. The rule of thumb has long been said to be 4% as the safe withdrawal rate, and in the low interest rate and high market valuation era the last decade plus some have said the safe rate is 3% (see https://www.bogleheads....
by miket29
Mon May 04, 2020 6:59 pm
Forum: Personal Investments
Topic: 5 year TIPS vs note
Replies: 1
Views: 258

5 year TIPS vs note

In my IRA account I want to hold some 5 year bonds for money I'm sure I won't need for 5 years, so I plan to hold to maturity. What I'd like to do is be protected against unanticipated inflation significantly eating into what I have for retirement in my bond portion. I wanted to check my undertandin...
by miket29
Wed Apr 22, 2020 2:45 pm
Forum: Personal Investments
Topic: still worthwhile to do tax loss harvesting?
Replies: 10
Views: 704

still worthwhile to do tax loss harvesting?

There were a number of threads after the market plunged about tax-loss harvesting. Unfortunately the 2 funds I own in my taxable account declared dividends in late March so I needed to wait until now. For example VTIAX (Vanguard Total International Stock Index Fund) declared a dividend on March 20th...
by miket29
Mon Apr 20, 2020 6:01 pm
Forum: Personal Investments
Topic: Making Extra Mortgage Payments if not planning to live in home forever
Replies: 18
Views: 1903

Re: Making Extra Mortgage Payments if not planning to live in home forever

It is true that a larger payment shortens your mortgage more, and thus saves you more dollars, but it takes longer to get the benefit, so it washes out. Say you have a mortgage at 3.5% with a monthly payment of $1000. If the mortgage has 30 years to go, the principal is $222,694. An extra payment o...
by miket29
Wed Apr 08, 2020 4:44 pm
Forum: Personal Investments
Topic: Follow Bernstein or Bogle
Replies: 99
Views: 7357

Re: Follow Bernstein or Bogle

I just wanted to make a comment about this statement: >We panicked and went to cash in March with 2.3 mil The statement tells us nothing about their entire retirement portfolio nor their real estate holdings or much of anything else. It could be $10 million and they only moved $2.3 million to cash....
by miket29
Sun Apr 05, 2020 8:16 pm
Forum: Personal Investments
Topic: Talk me out of or into increasing international equity allocation
Replies: 61
Views: 3209

Re: Talk me out of or into increasing international equity allocation

seems reasonable to me (of course that's probably because I did it about a year or so ago after learning about Vanguard's recommendation). A lot of investors have home-country bias. Even at 40% Int'l it's still slightly overweighted to US; a neutral portfolio would be 45% Int'l matching VHGEX Vangua...
by miket29
Sun Apr 05, 2020 8:07 pm
Forum: Personal Investments
Topic: Help for 21 year old sister
Replies: 9
Views: 1164

Re: Help for 21 year old sister

You don't mention if she has an emergency fund or other savings, but since she is 21 I'm guessing not. The first thing she should do is pay off any existing credit card debt, next add money to build up an emergency fund. How many months of income it should cover depends on her risk tolerance (it can...
by miket29
Sat Apr 04, 2020 7:23 pm
Forum: Personal Investments
Topic: Layered Emergency Fund
Replies: 30
Views: 2418

Re: Layered Emergency Fund

I’d be interested in hearing folks’ thoughts on a short-term TIPS fund for the OP’s second layer. TIPS can be volatile unless held to maturity. Unless the OP knows today when the emergency will occur it is possible they will need to be sold at a loss. The secondary market is somewhat thin compared ...
by miket29
Sat Apr 04, 2020 4:56 pm
Forum: Investing - Theory, News & General
Topic: might the gov't cause inflation in response to the crisis?
Replies: 6
Views: 725

might the gov't cause inflation in response to the crisis?

The gov't is spending $2 trillion now, and there are columnists saying they should do even more. For example What might be enough? Helicopter money—a term that comes from a Milton Friedman essay in which the Fed tosses money … out of a helicopter. Put in a more technical and accurate manner: fiscal-...
by miket29
Fri Apr 03, 2020 11:42 pm
Forum: Personal Investments
Topic: Tax Loss Harvesting Only Makes Sense if Short-Term?
Replies: 14
Views: 1050

Re: Tax Loss Harvesting Only Makes Sense if Short-Term?

I just meant, if for some reason you had long-term capital gains in a given year (taxed at 15%), and in the same year you TLH the same amount in long-term losses (so saving 15%), there really is no financial benefit, assuming in future years long term capital gains continue to be taxed at the same ...
by miket29
Fri Apr 03, 2020 11:28 pm
Forum: Personal Investments
Topic: Stop funding 401k and fund taxable?
Replies: 10
Views: 1294

Re: Stop funding 401k and fund taxable?

Since a dollar in my taxable is worth more than a dollar in the 401(k), should I stop contributing to the 401(k) and build up my taxable side. I have enough funds to re-balance on the tax deferred side Only if you expect income tax rates to rise in the future. Take the case where income tax rates n...
by miket29
Fri Apr 03, 2020 11:00 pm
Forum: Personal Investments
Topic: Tax Loss Harvesting Only Makes Sense if Short-Term?
Replies: 14
Views: 1050

Re: Tax Loss Harvesting Only Makes Sense if Short-Term?

If I am only getting a 15% tax benefit from TLH (from TLH long-term losses), and assuming when I later sell the assets at LTGC rates (15% tax rate), mathematically the total return is still the same, right? I'm not really sure what you're saying here. Selling at a loss doesn't give you any benefit ...
by miket29
Fri Mar 27, 2020 11:52 am
Forum: Personal Investments
Topic: Pershing Square and credit protection -- can we do this?
Replies: 1
Views: 200

Pershing Square and credit protection -- can we do this?

According to news reports (Ackerman at Pershing Square) turned a $27 million position into $2.6 billion through defensive hedge bets. Pershing Square used credit protection on investment-grade and high-yield bond indexes to land the massive profits. The assets rise in value as the odds of corporate ...
by miket29
Thu Mar 26, 2020 9:34 pm
Forum: Personal Investments
Topic: Will I ever have more than I put in?
Replies: 37
Views: 7692

Re:

I started investing about ten years ago. The money I invested in stock index funds is now worth less today than it was in 1999. I bought and held, and now I am paying the price for the excesses of Wall Street and the corruption of Washington D.C. If I had left the money in a CD or bonds I would hav...
by miket29
Wed Mar 25, 2020 11:08 am
Forum: Personal Investments
Topic: Why not stand on the sidelines for a little while?
Replies: 302
Views: 14221

Re: Why not stand on the sidelines for a little while?

Seems like what the OP is saying echoes the sentiments in this quote from a different thread: with all due respect, I must disagree with what you are saying. I understand that your advice is straight from the Diehard playbook, but this time it is different. If one were to consult with the 10 most re...
by miket29
Mon Mar 23, 2020 1:27 pm
Forum: Personal Investments
Topic: Portfolio Review Request
Replies: 6
Views: 712

Re: Should we be switching our allocation at this time

the general sentiment among Bogleheads it not to try to time the market. While Schiller and other indicators indicate what may be the likely return to investors over a decade or more, they were not intended to be used as market timing indices as a little research will show. Of course if you want to ...
by miket29
Sun Mar 22, 2020 3:40 pm
Forum: Personal Investments
Topic: Get out now or ride it out?
Replies: 85
Views: 7026

Re: Get out now or ride it out?

Hindsight is 20/20 and most would have sold off when DOW made the first major drop. Now the question is sell now if/before DOW drops to 15,000 or less. The investment philosophy here might not be a good fit for you. The Boglehead philosophy is for long-term investing with the understanding that mar...
by miket29
Sat Mar 21, 2020 1:17 pm
Forum: Personal Investments
Topic: Dad pulling retirements out of market. Advice Please!
Replies: 58
Views: 5949

Re: Dad pulling retirements out of market. Advice Please!

They need about 20K per year from their portfolio so if they just drew on the bonds they have enough to see them thru the next 20 years, at which time they will be 90. If the market gets back to the level before the crash by the end of those 20 years they'll be no worse off in terms of assets than i...
by miket29
Wed Mar 18, 2020 10:40 pm
Forum: Personal Investments
Topic: sell-all and wash sale rule question
Replies: 39
Views: 2089

sell-all and wash sale rule question

I've looked at the wiki at https://www.bogleheads.org/wiki/Wash_sale and it doesn't specifically cover whether you'd have a wash sale if you sell all the shares, including ones purchased within 30 days prior to the sale of all shares. However the wiki does link to the Fairmark website for additional...
by miket29
Mon Mar 16, 2020 6:53 pm
Forum: Personal Investments
Topic: All in VTSAX, probably not the smartest move I've made, seeking advice
Replies: 57
Views: 4956

Re: All in VTSAX, probably not the smartest move I've made, seeking advice

Yeah. I think you're actually very lucky to have gotten this lesson so early. Now you'll always keep best and worst-case scenarios in mind when allocating assets. Imagine instead turning 50 with a million dollar nest egg built up all in VTSAX and then having that crash in this environment. +1 In 20...
by miket29
Mon Mar 16, 2020 6:23 pm
Forum: Personal Investments
Topic: Tax loss harvest question
Replies: 3
Views: 182

Re: Tax loss harvest question

I'm not a tax attorney, consult one if you want an answer you can rely on if audited :happy VTIAX says it follows this index The fund employs an indexing investment approach designed to track the performance of the FTSE Global All Cap ex US Index, a free-float-adjusted market-capitalization-weighted...
by miket29
Mon Mar 16, 2020 6:12 pm
Forum: Personal Investments
Topic: Is my refusal to address rebalancing right now irresponsible/unbogle? Or can it be justified?
Replies: 19
Views: 1498

Re: Is my refusal to address rebalancing right now irresponsible/unbogle? Or can it be justified?

I'd go with what William Bernstein wrote in "Rational Expectations" in which he compares threshold vs calendar rebalancing. While threshold rebalancing may possibly be better, he writes, he goes on to say it is trickier to do properly. To continue paraphrasing, calendar rebalancing is still effectiv...
by miket29
Mon Mar 16, 2020 5:34 pm
Forum: Personal Investments
Topic: What would you buy on this dip?
Replies: 13
Views: 1390

Re: What would you buy on this dip?

it's interesting to see the word you chose, "dip". Maybe the financial equivalent of the Sapir-Whorf for languages which claims our words influence/determine the thoughts we can have. Calling it a "dip" implies something about it's duration. Had you bought the dip at the opening of the market today ...
by miket29
Sat Mar 07, 2020 10:09 pm
Forum: Personal Investments
Topic: Beneficiary
Replies: 17
Views: 919

Re: Beneficiary

You can set up your bank account as payable-on-death. See https://www.investopedia.com/terms/p/payableondeath.asp I would be very leery about making her a joint owner. It means even though you are alive the money is as much hers as yours and if she were to be sued the account is part of her assets. ...
by miket29
Thu Feb 27, 2020 12:03 am
Forum: Personal Investments
Topic: 38 yr old having 2nd thoughts...
Replies: 93
Views: 10751

Re: 38 yr old having 2nd thoughts...

If you've never actually lived through a protracted bear market, you may think you know how you will react, but you won't know for sure until it happens Not to discourage you from going all stock, but it is not black and white. I was 100% stock during both 2000 and 2008 and am 80/20 now; I never th...
by miket29
Mon Jan 27, 2020 4:13 pm
Forum: Personal Investments
Topic: Another TIPS-for-recent-retirees question from a 3 fund guy
Replies: 11
Views: 1275

Re: Another TIPS-for-recent-retirees question from a 3 fund guy

The problem with a TIPS bond fund, or any bond fund, is that the price changes due to interest rate changes. For a TIPS fund it is only the real interest rate that matters, not the nominal rate, since the difference between the 2 is the rate of inflation and the TIPS bond compensates you for it. I'd...
by miket29
Tue Dec 31, 2019 3:53 pm
Forum: Personal Investments
Topic: Previous employer 401k: rollover or keep?
Replies: 9
Views: 621

Re: Previous employer 401k: rollover or keep?

Might not have the ability to move into a future, better 401k plan than my new employer offers Some companies will allow you to bring money from a rollover IRA into their 401k. Fidelity can allow it (depending on how they set up the plan with the employer). One key, if this is ever going to be a po...
by miket29
Sat Nov 16, 2019 7:42 pm
Forum: Personal Investments
Topic: Mortgage? Pay cash?
Replies: 49
Views: 4084

Re: Mortgage? Pay cash?

I don’t need the liquidity. It is probably emotion that leads me to want it. We do not have a long term care insurance policy. The equity in our house serves that purpose. It would be nice, but maybe not necessary, to have ready access to the funds without selling or refinancing. To me it sounds li...
by miket29
Tue Nov 12, 2019 7:34 pm
Forum: Personal Investments
Topic: BRK.B
Replies: 22
Views: 3025

Re: BRK.B

And then I have a truck load of BRK.B in my Roth IRAs, which I started buying about 8 years ago. They've done okay, but not remarkable compared to, say Amazon or Netflix. I'm a big Buffet fan and feel that BRK.B is as conservative as it gets when it comes to individual stocks, but Berkshire doesn't...
by miket29
Tue Nov 12, 2019 1:29 pm
Forum: Personal Investments
Topic: Dad is looking to move money out of Fisher Investments...need advice
Replies: 16
Views: 3303

Re: Dad is looking to move money out of Fisher Investments...need advice

"My dad indicated to me that he does not want to be in bonds due to the low yields of bonds" I'll quote from Allan Roth (an author on the Boglehead wiki) in an article worth reading Client: I don’t want bonds because they produce little income. Interest rates have to go up from our current all-time ...
by miket29
Thu Oct 24, 2019 6:28 pm
Forum: Personal Investments
Topic: Considering Roth conversions, but would you if you were in my shoes?
Replies: 32
Views: 2696

Re: Considering Roth conversions, but would you if you were in my shoes?

I have a quick question regarding non-deductible contributions to a tIRA and Roth conversions. Before I was smarter than I am now I made some small ND deposits to my tIRA at VG. I have read the wiki and numerous posts here on Roth conversion and frankly, I am still confused. The IRA has about 900K,...
by miket29
Wed Oct 23, 2019 12:35 am
Forum: Personal Investments
Topic: Changing Asset Allocation for the Decumulation Years?
Replies: 7
Views: 857

Re: Changing Asset Allocation for the Decumulation Years?

I don't think anyone knows what the market will do, so you're wise to tune out the noise. At the same time you need to have an asset allocation that makes sense to you given your particular circumstances and preferences. As mentioned above a risk in early retirement is called "sequence of returns". ...
by miket29
Fri Oct 18, 2019 6:23 pm
Forum: Personal Investments
Topic: Getting up in age, too stock heavy
Replies: 33
Views: 4448

Re: Getting up in age, too stock heavy

So...it does seem to be a majority of those who helped me think that 40 stocks and 60 bonds (Vanguards suggestion) is too conservative. I guess I always just thought that when you are in your 70's that you start going over on the other side of the 60/40? But the consensus suggests that Vanguards is...
by miket29
Fri Oct 18, 2019 12:50 am
Forum: Personal Investments
Topic: Getting up in age, too stock heavy
Replies: 33
Views: 4448

Re: Getting up in age, too stock heavy

So...it does seem to be a majority of those who helped me think that 40 stocks and 60 bonds (Vanguards suggestion) is too conservative. I guess I always just thought that when you are in your 70's that you start going over on the other side of the 60/40? But the consensus suggests that Vanguards is...
by miket29
Sun Oct 13, 2019 5:53 pm
Forum: Personal Investments
Topic: Bond Allocation Choices at Retirement
Replies: 10
Views: 1980

Re: Bond Allocation Choices at Retirement

Retiring in December. Approx 2M. 50-50 allocation of stocks and bonds. Bonds are split 50-50 between intermediate term treasury ETF and BAGIX total bond fund. I have read a lot about I bonds and cd ladders on the forum. Is my current allocation OK at this point? Now is a good time to be sure you ar...
by miket29
Thu Oct 10, 2019 9:41 pm
Forum: Personal Investments
Topic: When is the best time to exchange a "not so good" fund in a 401K account?
Replies: 15
Views: 1106

Re: When is the best time to exchange a "not so good" fund in a 401K account?

I will check with the provider. Will you recommend if for bonds expense ratio is ~ 0.6% to 0.8% ? The two bond options are MIAAX(0.8%) and MRBFX(0.68%). and the two international funds are IVVYX(1.18%) and HEMZX(1.58%) Those expense ratios are terrible. And it has a 4.25% sales charge; hopefully yo...
by miket29
Wed Oct 02, 2019 4:20 pm
Forum: Personal Investments
Topic: Learnings/Regrets from last two recessions
Replies: 91
Views: 12919

Re: Learnings/Regrets from last two recessions

I was working in tech in 2000. Figured I had enough exposure to tech thru options at mega-corp I was working at, so my 401k was in domestic and international mutual funds. I was selling some options along the way, but after the crash the options were worth a fraction of what they were months earlier...
by miket29
Mon Sep 30, 2019 10:03 pm
Forum: Personal Investments
Topic: Accounting for mortgage in retirement math
Replies: 20
Views: 1915

Re: Accounting for mortgage in retirement math

2. Pad your retirement savings to generate sufficient additional income to cover the mortage. In our case our $3k monthly mortage payment goes roughly $2k towards the mortage and $1k towards the escrow account for taxes and insurance. With a paid-off mortage we'd still be needing to cover roughly $...
by miket29
Mon Sep 23, 2019 1:59 pm
Forum: Personal Investments
Topic: Glide path vs Coming In Hot
Replies: 23
Views: 2949

Re: Glide path vs Coming In Hot

I’d love for us to both retire once the kids are done with college. I’m pretty sure we can live reasonably comfortably on $100-120K/year. It’s tough for me to judge expenses, since we spend quite a bit each month on the kids and various non-essentials, but we’re debt-free, and have a cushy cash eme...
by miket29
Sat Aug 31, 2019 12:51 pm
Forum: Personal Finance (Not Investing)
Topic: Vanguard alert [Unclaimed property notice]
Replies: 103
Views: 17480

Re: Vanguard alert [Unclaimed property notice]

I registered just so I could post my experience with this. The thread is dated, but hopefully this will be helpful to some. Wow, scary info! Thanks for posting. I'm a buy and hold investor so I just leave things alone for long periods of time. I'm going to set a calendar event to log in every 6 mos.
by miket29
Thu Aug 29, 2019 7:19 pm
Forum: Personal Finance (Not Investing)
Topic: thinking about paying off mortgage
Replies: 5
Views: 449

thinking about paying off mortgage

I've looked thru a few recent threads but they don't seem applicable to me due to age differences or money left after paying off the mortgage I'm 3 years away from retirement and have 22 years left on a 30 year mortgage of $400K at 3.5%. So at present the interest payment is roughly $12K per year. W...
by miket29
Tue Aug 13, 2019 11:10 pm
Forum: Personal Investments
Topic: asset allocation with debt paydown instead of bond investment
Replies: 15
Views: 865

Re: asset allocation with debt paydown instead of bond investment

The SEC Yield on Total US Bond is 2.41% today. +2.41% vs -3.75% That is a 6.16% spread. I'm not following the logic here. The bond in the amount of the mortgage invested in bonds is earning 2.41%, the negative bond in the equal amount paying off the mortgage is costing 3.75%. The net difference is ...
by miket29
Tue Aug 13, 2019 11:02 pm
Forum: Personal Investments
Topic: Laid off - 59yo - advice please
Replies: 44
Views: 7261

Re: Laid off - 59yo - advice please

My annual overhead is around 50K (between rent, insurance, and the basics). Single, no kids, no debt, don't own a house. I live in California. I'll hopefully be able to bring in $10k - 15k annually doing freelance work. So, I'll have an approximate $35K - 40K annual shortfall that I'll have to with...
by miket29
Thu Aug 01, 2019 6:19 pm
Forum: Personal Investments
Topic: VTI and call it a day?
Replies: 9
Views: 1607

Re: VTI and call it a day?

Hello all, as I get 5 or so years from retirement but still invest a lot monthly,Over all, I'm 60/40. Is that 60% stocks? One rule of thumb is that your bond holdings should parallel your age. If you are 60, then 60% in bonds. Some suggest even more; for example Rick Ferri suggests 30% stock for ne...
by miket29
Fri Jul 26, 2019 12:13 pm
Forum: Personal Investments
Topic: Should I pay off my mortgage?
Replies: 34
Views: 2578

Re: Should I pay off my mortgage?

The $150K money in the Roth is likely (but not guaranteed) to grow at faster than 3.125% annualized over the next 15 years. So even if writing the $2,500 check pains you, the loss in foregone appreciation if you cash out the Roth to pay off the mortgage may be much, much more. However, I may have go...
by miket29
Thu Jul 25, 2019 10:53 am
Forum: Personal Investments
Topic: Retirement Portfolio for our Over-Valued times (2020 retirement)
Replies: 11
Views: 3653

Re: Retirement Portfolio for our Over-Valued times (2020 retirement)

For AA there is no perfect answer. Rick Ferri has suggested that the best allocation for pre-retirees or those recently retired is 30% stock, 70% bond. See https://www.forbes.com/sites/rickferri/2015/02/06/the-center-of-gravity-for-retirees/#13a5fed65dae He does write this may be too conservative fo...
by miket29
Wed Jul 24, 2019 4:50 pm
Forum: Personal Investments
Topic: Here for my 40yr Checkup!
Replies: 11
Views: 1917

Re: Here for my 40yr Checkup!

Yes, I looked into this previously and it’s not an option unfortunately. I can indeed make after tax contributions and also In-service rollovers. The problem is that the in service rollovers come from both before and after tax so I cannot specify just after tax. That’s too bad. This is a longshot, ...
by miket29
Wed Jul 24, 2019 2:40 pm
Forum: Personal Investments
Topic: Here for my 40yr Checkup!
Replies: 11
Views: 1917

Re: Here for my 40yr Checkup!

New annual Contributions $19k his 401k (6% match) $19k her 401k (4% match) $6k his Roth IRA $6k her Roth IRA $7k Combined HSAs $10k 529s (ages 4 and 6 currently) $5k Extra Mortgage Payment Rest that is saved ~$5-10k taxable (for retirement, not short term goals) The only suggestion I'd make is to f...
by miket29
Wed Jul 24, 2019 2:34 pm
Forum: Personal Investments
Topic: Who has the best (easiest) Donor Advised Fund
Replies: 57
Views: 3294

Re: Who has the best (easiest) Donor Advised Fund

Most of my assets are at Vanguard, but I used Fidelity for a DAF because of the lower minimums for account and donations. I believe I was able to identify specific lots when I transferred the assets, but I would think that's more about the sender than the receiver. +1 Did the same thing, for the sa...