Search found 2045 matches

by Chuck
Wed Oct 17, 2018 2:14 pm
Forum: Investing - Help with Personal Investments
Topic: Is there a benefit of investing in Traditional IRA if company provides 401K
Replies: 14
Views: 931

Re: Is there a benefit of investing in Traditional IRA if company provides 401K

IMO, a non-deductible traditional IRA is worse than nothing. Buy stocks in taxable and pay capital gains, instead of converting all your gains to regular taxable income. You could just buy bonds in it, and defer tax on gains until 59.5, but that's a small benefit for tying up your money. You could j...
by Chuck
Tue Sep 11, 2018 12:26 pm
Forum: Investing - Theory, News & General
Topic: Barron's--Vanguard Is Losing Battles on Two Fronts in Fee Wars
Replies: 53
Views: 4730

Re: Barron's--Vanguard Is Losing Battles on Two Fronts in Fee Wars

20 to 50 years from now, will Fidelity still have zero ER funds? (What will happen to your tax basis if they don't?) Vanguard's corporate structure is a big part of choosing Vanguard.
by Chuck
Wed Aug 29, 2018 1:05 pm
Forum: Investing - Theory, News & General
Topic: Most commonly misused/misunderstood investing terms and concepts (on BH forum)
Replies: 220
Views: 11558

Re: Most commonly misused/misunderstood investing terms and concepts (on BH forum)

The most common thing I've noticed is when people who are "wary" of a risky asset say they are "weary" of it.
by Chuck
Mon Aug 27, 2018 12:55 pm
Forum: Personal Finance (Not Investing)
Topic: Man...opening a savings account with Ally is an arduous process.
Replies: 32
Views: 3130

Re: Man...opening a savings account with Ally is an arduous process.

You can get higher yield elsewhere, so maybe it's good if they reject you. better yield and as good/better user experience? i am all ears because right now my money is parked with Chase earning NOTHING. With Vanguard Prime Money Market earning more than most (all?) savings accounts, I've lost inter...
by Chuck
Sun Jun 17, 2018 12:06 pm
Forum: Personal Finance (Not Investing)
Topic: new thinking under 2018 tax law?
Replies: 21
Views: 3481

Re: new thinking under 2018 tax law?

Is that changing any of your decisions concerning tax deferred accounts?
by Chuck
Mon Jun 04, 2018 3:43 pm
Forum: Investing - Help with Personal Investments
Topic: Windfall advice for an overwhelmed person
Replies: 76
Views: 6704

Re: Is Bogleheads not right for me? Trying to generate monthly income before retirement

Okay... stop. You need to read some of the books in the wiki. NO ONE HERE (or anywhere really) will advise you to pay 5%-7% interest on money so you can invest it and gamble on making more than 7%. Not to pile on, but 7% is what most of us expect to make on our stock investments. So that's another ...
by Chuck
Fri May 25, 2018 3:42 pm
Forum: Personal Finance (Not Investing)
Topic: should I buy or rent
Replies: 18
Views: 1391

Re: should I buy or rent

I guess the important point is that there are some who say renting is just throwing money away, and owning is what "smart" people do. It's not so simple, you have to run the numbers for yourself, including factors like the certainty of staying in one location for a certain period of time. I "own" my...
by Chuck
Fri May 25, 2018 12:53 pm
Forum: Personal Finance (Not Investing)
Topic: should I buy or rent
Replies: 18
Views: 1391

Re: should I buy or rent

dm200 wrote:
Fri May 25, 2018 12:40 pm
Do what your wife wants..
I've seen this suggestion repeatedly on this forum, and I think it's one of the best.
by Chuck
Mon May 21, 2018 12:47 pm
Forum: Investing - Help with Personal Investments
Topic: Why is my after tax contribution showing up a penny less?
Replies: 6
Views: 713

Re: Why is my after tax contribution showing up a penny less?

It's even worse for us ETF users. Prices are only within 0.01 +/-, so we can see $5 or more difference by completing a trade one second later. Sometimes up, sometimes down. That's the game we play.
by Chuck
Sat May 19, 2018 10:28 am
Forum: Investing - Help with Personal Investments
Topic: Series I Bonds in April/May 2018
Replies: 69
Views: 9910

Re: Series I Bonds in April/May 2018

You will not get a 1099 until you redeem. You won't get interest payments, the value will just accumulate in the bond itself. So the deferral is automatic. If you redeem a bond to buy one with a higher fixed rate, you can not "roll over." You will pay tax on the bond that you redeemed. You will also...
by Chuck
Wed May 16, 2018 4:36 pm
Forum: Personal Finance (Not Investing)
Topic: Better to be in debt to yourself or others?
Replies: 25
Views: 1828

Re: Better to be in debt to yourself or others?

Compare that to what you lose on interest by not doing it.

Spreadsheet both scenarios and see which one makes you end up with more spendable money.
by Chuck
Wed May 16, 2018 4:07 pm
Forum: Investing - Theory, News & General
Topic: How to decide VT vs VTI?
Replies: 6
Views: 1809

Re: How to decide VT vs VTI?

VT is more diversified. However, if you use VTI and VEU separately you can choose your own allocation. You may also have more options with respect to tax lots, etc. I tend to be more slicey dicey, but for a worldwide allocation, VT is the "set it and forget it" option. I don't think there is a wrong...
by Chuck
Wed May 16, 2018 3:45 pm
Forum: Personal Finance (Not Investing)
Topic: Better to be in debt to yourself or others?
Replies: 25
Views: 1828

Re: Better to be in debt to yourself or others?

I would just stop contributing to the 401k until the debts are paid off.
by Chuck
Wed May 16, 2018 3:35 pm
Forum: Personal Finance (Not Investing)
Topic: Downsizing in 8 years. Buy now?
Replies: 18
Views: 1850

Re: Downsizing in 8 years. Buy now?

In 2010, 8 years ago, what did you think life was going to be like in 2018? Were you right?
by Chuck
Sun May 06, 2018 9:00 pm
Forum: Investing - Help with Personal Investments
Topic: Vanguard: ETF vs MF
Replies: 38
Views: 3456

Re: Vanguard: ETF vs MF

For me, a nightmare is a dog or bear chasing me, and I climb up a tree to get away, but it grabs a bite of my foot, and I wake up in a cold sweat holding my leg and trying to calm down my breath.

Having a few extra dollars in a money market fund is not.
by Chuck
Fri May 04, 2018 11:44 pm
Forum: Investing - Help with Personal Investments
Topic: Series I Bonds in April/May 2018
Replies: 69
Views: 9910

Re: Series I Bonds in April/May 2018

aristotelian wrote:
Fri May 04, 2018 5:01 pm
I have seen this argument before but I don't get it.
A financial instrument advertised to preserve purchasing power does not actually preserve purchasing power.
by Chuck
Tue May 01, 2018 11:53 am
Forum: Personal Consumer Issues
Topic: Fiber cable on front lawn
Replies: 39
Views: 2907

Re: Fiber cable on front lawn

You could bury it yourself in about 20 minutes. It's not electricity, so there are no depth requirements. Cut a slit in the ground with a knife, and push the cable down in there with your fingers. Walk over it a few times to close it up. Wash your hands. There will be less damage to your lawn than i...
by Chuck
Tue May 01, 2018 11:33 am
Forum: Personal Consumer Issues
Topic: Keyboard key labels wearing off...
Replies: 19
Views: 1400

Re: Keyboard key labels wearing off...

I have an old Dell keyboard from the dark ages, and a PS/2 to USB converter so that I can continue using it on modern computers. It is about 15 years old, filthy as heck, but the key labels are still perfect. Another example of "they don't make 'em like they used to?" I agree that if you've been usi...
by Chuck
Tue May 01, 2018 11:22 am
Forum: Investing - Help with Personal Investments
Topic: Series I Bonds in April/May 2018
Replies: 69
Views: 9910

Re: Series I Bonds in April/May 2018

Using a long-term inflation projection of 2%, and a theoretical for-argument's-sake tax rate of 25%, you'd want a 0.5% fixed rate just to maintain purchasing power. In that sense, 0.3% is way better than last month's 0.1%. But still not... "good." If it is the same or higher in 2019, I will consider...
by Chuck
Thu Apr 26, 2018 2:23 pm
Forum: Investing - Help with Personal Investments
Topic: Switching from S&P 500 to Total Market
Replies: 9
Views: 1576

Re: Switching from S&P 500 to Total Market

What you want is a "market completion index" fund. Vanguard's Extended Market Index Fund is one. It says: "The fund is considered a complement to Vanguard 500 Index Fund. Together they provide exposure to the entire U.S. equity market." You would have to buy it in the right ratio with the 500 fund, ...
by Chuck
Wed Apr 25, 2018 10:22 pm
Forum: Personal Finance (Not Investing)
Topic: Whole Life Policy
Replies: 29
Views: 2999

Re: Whole Life Policy

Well of course. The death benefit and cash value are based on the assumption that you pay premiums. If you stop putting money in, it will be worth less than that.
by Chuck
Wed Apr 25, 2018 3:26 pm
Forum: Personal Finance (Not Investing)
Topic: Whole Life Policy
Replies: 29
Views: 2999

Re: Whole Life Policy

This is the reality for many whole life policies. They're a bad idea to get into, but after 10 years the cost is already sunk, and they may actually be advantageous going forward.
by Chuck
Wed Apr 25, 2018 3:24 pm
Forum: Personal Finance (Not Investing)
Topic: Whole Life Policy
Replies: 29
Views: 2999

Re: Whole Life Policy

So you earn 5% a year as long as you spend an annually increasing amount on something you don't need. That's the puzzlement for me. I'd look at the increase without subtracting out the premium, since I wouldn't pay that if it weren't necessary to earn the 5%. I can certainly stop paying premiums (t...
by Chuck
Wed Apr 25, 2018 12:53 pm
Forum: Personal Finance (Not Investing)
Topic: Whole Life Policy
Replies: 29
Views: 2999

Re: Whole Life Policy

I just look at the increase in cash surrender value over the past year. Subtracting premium paid (obviously) the increase is usually close to 5%. Since that is better than any other fixed-income vehicle that is currently available to me, I have decided to keep it.... for now. (I consider it a "bond"...
by Chuck
Tue Apr 24, 2018 5:02 pm
Forum: Investing - Theory, News & General
Topic: KF's simple rules to achieve FI [Financial Independence]
Replies: 451
Views: 35165

Re: KF's simple rules to achieve FI [Financial Independence]

I repeat, there is no reason to change your asset allocation based on whether you have a 529 account or not. This is a fundamental misunderstanding of the difference between asset location and asset allocation. The 529 simply changes the tax treatment of a certain amount of your money. Same as a 401...
by Chuck
Tue Apr 24, 2018 3:47 pm
Forum: Investing - Theory, News & General
Topic: KF's simple rules to achieve FI [Financial Independence]
Replies: 451
Views: 35165

Re: KF's simple rules to achieve FI [Financial Independence]

I would favor stocks in the 529 account (and Roth) and increase bonds elsewhere. You want your highest expected return in the accounts that will never be taxed again.
by Chuck
Tue Apr 24, 2018 3:29 pm
Forum: Investing - Theory, News & General
Topic: KF's simple rules to achieve FI [Financial Independence]
Replies: 451
Views: 35165

Re: KF's simple rules to achieve FI [Financial Independence]

Let's say you have 16 years to save for a 4 year in-state tuition. You could save the discounted amount of 1/4 of that tuition amount each year. This should be conservative because tuition rises faster than inflation. If you want it to be more conservative, just reduce the amount further. An exact f...
by Chuck
Tue Apr 24, 2018 2:44 pm
Forum: Investing - Theory, News & General
Topic: KF's simple rules to achieve FI [Financial Independence]
Replies: 451
Views: 35165

Re: KF's simple rules to achieve FI [Financial Independence]

Your calculation is wrong anyhow. I didn't provide any calculation. If I am fully-employed, at my saving level, I can "cash flow" my kids' college education. I do not need to use my taxable account. This is a common fallacy, but your money doesn't care where it "comes from." If you have a education...
by Chuck
Tue Apr 24, 2018 11:58 am
Forum: Personal Consumer Issues
Topic: Used car dealer-Freight charge
Replies: 21
Views: 1563

Re: Used car dealer-Freight charge

They can break down your check however they see fit. You pay what you're willing to pay an not a cent more. That's it.

I find that the back of my head is a better negotiator than my face.
by Chuck
Tue Apr 24, 2018 11:49 am
Forum: Personal Finance (Not Investing)
Topic: new thinking under 2018 tax law?
Replies: 21
Views: 3481

Re: new thinking under 2018 tax law?

The differences in marginal rates were small. (25% to 22%? 12% to 10%?) Even if the rates were to go back to the higher ones it wouldn't change any of my decisions on tax-deferred accounts.
by Chuck
Tue Apr 24, 2018 11:43 am
Forum: Investing - Theory, News & General
Topic: KF's simple rules to achieve FI [Financial Independence]
Replies: 451
Views: 35165

Re: KF's simple rules to achieve FI [Financial Independence]

All of the above does not have the limitation of the 529. This is non-sequitur to the discussion of whether or not to use a 529 account when paying for college expenses is an expected outcome . There is a 2x2 matrix here, on one axis you have a 529, or a taxable account. On the other axis, you have...
by Chuck
Tue Apr 24, 2018 10:17 am
Forum: Investing - Theory, News & General
Topic: KF's simple rules to achieve FI [Financial Independence]
Replies: 451
Views: 35165

Re: KF's simple rules to achieve FI [Financial Independence]

Regarding the 529: An unqualified withdrawal from a 529 is pro-rata basis and investment gains. You will pay regular income tax on the gains, plus a 10% penalty. (The basis is post-tax anyway.) If you received any state tax benefit from the contribution, you'll likely have to pay it back as well. If...
by Chuck
Mon Apr 23, 2018 3:42 pm
Forum: Personal Finance (Not Investing)
Topic: new thinking under 2018 tax law?
Replies: 21
Views: 3481

Re: new thinking under 2018 tax law?

In my situation, I don't see any opportunity for strategic changes, even though I will benefit quite a bit from the new law.
by Chuck
Thu Apr 19, 2018 8:47 pm
Forum: Investing - Help with Personal Investments
Topic: Ally Bank No penalty CD for parking cash, is there a catch?
Replies: 104
Views: 21299

Re: Ally Bank No penalty CD for parking cash, is there a catch?

misterno wrote:
Thu Apr 19, 2018 6:19 pm
You dont need $5mm to invest in vmrxx
Do you have it available in a 401k or something?
by Chuck
Thu Apr 19, 2018 5:38 pm
Forum: Investing - Help with Personal Investments
Topic: Ally Bank No penalty CD for parking cash, is there a catch?
Replies: 104
Views: 21299

Re: Ally Bank No penalty CD for parking cash, is there a catch?

BlackcatCA wrote:
Thu Apr 19, 2018 3:49 pm
The SEC yield of VMRXX is 1.84% today, 1.78 earlier in the week.
Unfortunately I don't have $5M to invest, so I'm still stuck with the 1.78% SEC yield of the non-admiral fund.
by Chuck
Wed Apr 18, 2018 3:46 pm
Forum: Investing - Help with Personal Investments
Topic: Ally Bank No penalty CD for parking cash, is there a catch?
Replies: 104
Views: 21299

Re: Ally Bank No penalty CD for parking cash, is there a catch?

As mentioned in other threads, Vanguard's Prime Money Market fund is now yielding 1.78%.
by Chuck
Wed Apr 18, 2018 11:26 am
Forum: Personal Finance (Not Investing)
Topic: Broke up with my girlfriend for financial reasons: crazy?
Replies: 53
Views: 4048

Re: Broke up with my girlfriend for financial reasons: crazy?

One can get tied up talking about "financial goals" when they mean "life goals." It's certainly easier to be indignant when "your money is more important than me," but less so saying, "your goals for your life and future are more important than me." I'm not sure I can get behind the "Ask the Boglehe...
by Chuck
Tue Apr 17, 2018 10:14 am
Forum: Investing - Theory, News & General
Topic: Cash instead of bonds?
Replies: 59
Views: 8976

Re: Cash instead of bonds?

I mentioned in another thread that I had lunch with a wealthy retired man whose investment advice for retirees was to buy the S&P 500 and keep two year's expenses in cash (money market). No other mutual funds or bonds. I don't know about the man's non-stockmarket investments, though I assume he has...
by Chuck
Tue Apr 17, 2018 10:04 am
Forum: Investing - Theory, News & General
Topic: Why is the SEC yield the one that Vanguard displays?
Replies: 39
Views: 4842

Re: Why is the SEC yield the one that Vanguard displays?

So, if you are choosing a fund, the distribution yield is the yield you "would have gotten" and the SEC yield is the yield you "probably will get."
by Chuck
Mon Apr 16, 2018 4:29 pm
Forum: Personal Consumer Issues
Topic: Owning 3 vehicles
Replies: 30
Views: 3242

Re: Owning 3 vehicles

I wanted a pickup truck for occasional hauling, but that was super-expensive, so I bought a trailer to hook up to my minivan. It's harder to drive, but it's way cheaper than a truck.
by Chuck
Mon Apr 16, 2018 4:19 pm
Forum: Personal Consumer Issues
Topic: Owning 3 vehicles
Replies: 30
Views: 3242

Re: Owning 3 vehicles

Oh yeah, I forgot to add that the third car should not be new, as bloom2708 mentioned. I would have said something between 5-8 years old, in order to minimize depreciation. However, make sure every car gets driven at least once every week or two. I've had to get repairs on some of my vehicles after ...
by Chuck
Mon Apr 16, 2018 4:13 pm
Forum: Investing - Help with Personal Investments
Topic: S&P 500 Total Return ETF ?
Replies: 11
Views: 1540

Re: S&P 500 Total Return ETF ?

What are you trying to accomplish?
by Chuck
Mon Apr 16, 2018 4:06 pm
Forum: Investing - Theory, News & General
Topic: Cash instead of bonds?
Replies: 59
Views: 8976

Re: Cash instead of bonds?

That sounds like a fine plan. A money market fund "feels" like cash, but it's actually bonds, although very short-term. Vanguard's Prime MM is showing a 1.77% yield. Total bond market (what I assume when one says "bonds") yields 2.86%. So you're giving up yield to avoid volatility, but not tragicall...
by Chuck
Mon Apr 16, 2018 4:00 pm
Forum: Investing - Help with Personal Investments
Topic: S&P 500 Total Return ETF ?
Replies: 11
Views: 1540

Re: S&P 500 Total Return ETF ?

I believe US-based funds are required by law to distribute dividends to investors.
by Chuck
Mon Apr 16, 2018 3:56 pm
Forum: Personal Consumer Issues
Topic: Owning 3 vehicles
Replies: 30
Views: 3242

Re: Owning 3 vehicles

If you have space for parking, and you can handle the additional cost. Your vehicle expense will have two components. I don't know the financially literate way to discuss it, but it's essentially the cost to own (which is more or less constant with time), and the cost to drive (which is cost per mil...
by Chuck
Thu Apr 12, 2018 12:58 pm
Forum: Investing - Help with Personal Investments
Topic: SPIA Return - Am I calculating this correctly?
Replies: 72
Views: 3656

Re: SPIA Return - Am I calculating this correctly?

Can you please point me to DIY information on building a TIPS ladder. Paul Vanguard.com -> Find CDs and bonds -> Treasuries -> Treasury type = TIPS -> Search There are only 40 or so total TIPS issues, so put a checkmark in front of each one you want, and hit "Build Ladder." The quantities are all s...
by Chuck
Thu Apr 12, 2018 12:15 pm
Forum: Investing - Help with Personal Investments
Topic: SPIA Return - Am I calculating this correctly?
Replies: 72
Views: 3656

Re: SPIA Return - Am I calculating this correctly?

BTW, a 15-year ladder of TIPS is easy to build and would provide actual inflation protection (rather than a fixed 2% pa increase), for $688,250.
by Chuck
Thu Apr 12, 2018 10:58 am
Forum: Investing - Help with Personal Investments
Topic: SPIA Return - Am I calculating this correctly?
Replies: 72
Views: 3656

Re: SPIA Return - Am I calculating this correctly?

To make a fair comparison, I'll assume that the SPIA will cost me $667,000 6 months from now . Your number is right for today, actually. Great work! If I adjust the bonds to start maturing immediately, the total cost is $667,155. That was quite an oversight on my part. The SPIA cost of $664,458 is ...
by Chuck
Wed Apr 11, 2018 11:19 pm
Forum: Investing - Help with Personal Investments
Topic: SPIA Return - Am I calculating this correctly?
Replies: 72
Views: 3656

Re: SPIA Return - Am I calculating this correctly?

A 15-year ladder with a mishmash of zeroes and non-callable CDs costs $649,523. Because of the heavy reliance on strips, I chose to cluster the maturities around August. The results are not the best outside of trading hours. It took me about 25 minutes. This is about $15,000 cheaper than the SPIA. N...