Search found 36 matches

by boglenomics
Sun Sep 22, 2019 8:37 pm
Forum: Personal Investments
Topic: Schwab Funds Data Reporting
Replies: 1
Views: 278

Schwab Funds Data Reporting

On Schwab's fund website I was trying to check the Price to Book ratio of the SCHB ETF and the reported number seems off. It's displaying a Price to Book of 1.58 for me (under Fund Characteristics). I'm expecting a value of something ~3.0 based off comparisons to VTI. The PE ratio looks correct. I k...
by boglenomics
Thu Sep 19, 2019 7:17 pm
Forum: Personal Finance (Not Investing)
Topic: Capital One 360 shaking up savings accounts
Replies: 34
Views: 11079

Re: Capital One 360 shaking up savings accounts

I feel banks sometimes create new account types in hopes the people are lazy and keep their money in the old account that earns less. While they can advertise the higher rates of the new account. CIT bank does this a lot … They should have just migrated all accounts to this new one since it's bette...
by boglenomics
Thu Sep 19, 2019 6:06 pm
Forum: Personal Finance (Not Investing)
Topic: Should I actually finance this car?
Replies: 28
Views: 1949

Re: Should I actually finance this car?

I'm emotionally done w/ a 12yo car I've been driving. Plan to get ~$13K for it. Don't commute far, not really a car person necessarily. Income ~275K. Debt: 130k 3.5% mortgage 110k on 2% HELOC that will switch to 0.5% above prime in 3-4 months after promo done. Took this to put full down payment on ...
by boglenomics
Thu Sep 19, 2019 6:02 pm
Forum: Personal Finance (Not Investing)
Topic: Capital One 360 shaking up savings accounts
Replies: 34
Views: 11079

Re: Capital One 360 shaking up savings accounts

Another thing to note is that customers who have the Money Market account have been dropped to the 1.9% rate but must still keep $10k in the account to earn that rate. I have switched those over to the performance savings. Capital One doesn't have the best rate but they have great customer support a...
by boglenomics
Mon Sep 16, 2019 7:09 pm
Forum: Personal Finance (Not Investing)
Topic: Primer on Paying Taxes With a Credit Card
Replies: 80
Views: 11241

Re: Primer on Paying Taxes With a Credit Card

Chase Freedom has Paypal as a 5% bonus category starting October 1st. There is one processor who accepts Paypal, PayUSATax. I'll be paying the first $1,500 of my estimated tax like that. Pretty nice margin. This concept is great thanks for sharing! I have to pay quarterly taxes for my business and ...
by boglenomics
Thu Sep 05, 2019 9:10 pm
Forum: Personal Investments
Topic: 401K Wells Fargo Stable Value Fund - Home Downpayment?
Replies: 4
Views: 245

Re: 401K Wells Fargo Stable Value Fund - Home Downpayment?

You could do this, as long as there are no restrictions on withdrawing from the stable value fund to buy stock. (For example, you can't do the equivalent transaction with TIAA Traditional Annuity in the forms which require all withdrawals to be made over a ten-year period.) However, for a short-ter...
by boglenomics
Thu Sep 05, 2019 8:58 pm
Forum: Personal Investments
Topic: 401K Wells Fargo Stable Value Fund - Home Downpayment?
Replies: 4
Views: 245

Re: 401K Wells Fargo Stable Value Fund - Home Downpayment?

I do not have cash in taxable so I'm probably doing what that wiki suggests. Yes, a stable value fund in tax-deferred is a reasonable choice. I personally have a stable value fund that is the closest thing to cash that I have in my portfolio. I also have a bond fund in tax-deferred. I don't really ...
by boglenomics
Thu Sep 05, 2019 8:27 pm
Forum: Personal Investments
Topic: 401K Wells Fargo Stable Value Fund - Home Downpayment?
Replies: 4
Views: 245

401K Wells Fargo Stable Value Fund - Home Downpayment?

In order to avoid the substantial ordinary income tax on my savings for a home downpayment I would like to shelter the funds inside my tax advantaged accounts. I have a 50% margin of safety on my taxable account index funds that I could swap when the time comes per the Wiki "Placing cash needs in a ...
by boglenomics
Mon Jul 15, 2019 7:50 am
Forum: Investing - Theory, News & General
Topic: Wealthfront now offers 2.51% APY
Replies: 84
Views: 10816

Re: Wealthfront now offers 2.51% APY

SIPC is not a government organization where the FDIC is backed and operated by the federal government. Considering the FDIC is government backed I consider it less risky than SIPC. Also it's SIPC, not what you just said. That is something very different. SIPC was founded by an act of Congress, so t...
by boglenomics
Sun Jul 14, 2019 8:37 pm
Forum: Investing - Theory, News & General
Topic: Wealthfront now offers 2.51% APY
Replies: 84
Views: 10816

Re: Wealthfront now offers 2.51% APY

Here are the FDIC-insured banks Wealthfront is using: https://support.wealthfront.com/hc/en-us/articles/360022591631 So the .27 rate differential you refer to is not direct federal backing, which Wealthfront offers, but rather your personal cost of avoiding Wealthfront. Hypothetically speaking what...
by boglenomics
Sun Jul 14, 2019 8:21 pm
Forum: Investing - Theory, News & General
Topic: Wealthfront now offers 2.51% APY
Replies: 84
Views: 10816

Re: Wealthfront now offers 2.51% APY

...[In a Wealthfront account] the funds are held in FDIC-insured accounts in the actual customer's name . This is why it's important to know which banks they partner with: your FDIC insurance only extends to $250k per individual per institution, so you need to manage that limit... If you have one o...
by boglenomics
Sun Jul 14, 2019 8:13 pm
Forum: Investing - Theory, News & General
Topic: Wealthfront now offers 2.51% APY
Replies: 84
Views: 10816

Re: Wealthfront now offers 2.51% APY

From their description: Until the sweep occurs, your Cash Balance will remain uninvested Free Credit Balances in your Cash Account. Because Wealthfront Brokerage is a member of th e Securities Investor Protection Corporation (“SIPC”), our customers are protected up to applicable SIPC limits if Weal...
by boglenomics
Sun Jul 14, 2019 7:53 pm
Forum: Investing - Theory, News & General
Topic: Wealthfront now offers 2.51% APY
Replies: 84
Views: 10816

Re: Wealthfront now offers 2.51% APY

...[In a Wealthfront account] the funds are held in FDIC-insured accounts in the actual customer's name . This is why it's important to know which banks they partner with: your FDIC insurance only extends to $250k per individual per institution, so you need to manage that limit... If you have one o...
by boglenomics
Sun Jul 14, 2019 7:48 pm
Forum: Investing - Theory, News & General
Topic: Wealthfront now offers 2.51% APY
Replies: 84
Views: 10816

Re: Wealthfront now offers 2.51% APY

Thanks for clarifying, this is great info. Knowing the banks have the customer names on record as well changes my opinion. Now the vinegar to make you skeptical again. :D As Wealthfront alludes[1], that FDIC insurance only applies once the money is deposited with the partner bank. Until that point,...
by boglenomics
Sun Jul 14, 2019 7:32 pm
Forum: Investing - Theory, News & General
Topic: Wealthfront now offers 2.51% APY
Replies: 84
Views: 10816

Re: Wealthfront now offers 2.51% APY

Hypothetically speaking what if Wealthfront were to go out of business? The program banks are probably not aware of who the money belongs to besides "Wealthfront Inc.". This means it would be up to the SIPC to figure out who owns the money and make sure it gets back to them. The program banks have ...
by boglenomics
Sun Jul 14, 2019 7:23 pm
Forum: Investing - Theory, News & General
Topic: Wealthfront now offers 2.51% APY
Replies: 84
Views: 10816

Re: Wealthfront now offers 2.51% APY

This is the one thing that keeps me from moving my money. 2.57% looks tempting, especially now that VMMXX's yield is dropping significantly, but do I believe in Wealthfront's long term viability? No. I wouldn't feel comfortable putting my money there (nor Robinhood, nor Personal Capital while we're...
by boglenomics
Sun Jul 14, 2019 7:02 pm
Forum: Investing - Theory, News & General
Topic: Wealthfront now offers 2.51% APY
Replies: 84
Views: 10816

Re: Wealthfront now offers 2.51% APY

In the non-FDIC world of money there's also a big difference between the players as well. Wealthfront has a $11.4 billion AUM and has not made a profit or been able to run at cost vs. the multi-trillion AUM of Schwab, Vanguard, and Fidelity who are also covering the cost of business operations succ...
by boglenomics
Sun Jul 14, 2019 5:20 pm
Forum: Investing - Theory, News & General
Topic: Wealthfront now offers 2.51% APY
Replies: 84
Views: 10816

Re: Wealthfront now offers 2.51% APY

In the non-FDIC world of money there's also a big difference between the players as well. Wealthfront has a $11.4 billion AUM and has not made a profit or been able to run at cost vs. the multi-trillion AUM of Schwab, Vanguard, and Fidelity who are also covering the cost of business operations succ...
by boglenomics
Sun Jul 14, 2019 5:06 pm
Forum: Personal Investments
Topic: Switching from passive to active management
Replies: 106
Views: 8899

Re: Switching form passive to active management

Consider a service like Vanguard PAS. It will be much cheaper than the cost of a multi-family office and more trustworthy in my opinion. The downside protection they promise seems untenable. They will either hold more in cash / fixed income when it doesn't make sense or be engaging in some sort of r...
by boglenomics
Wed Jun 26, 2019 5:18 pm
Forum: Investing - Theory, News & General
Topic: Dave Ramsey says to give up employer 401K match to pay down debt
Replies: 148
Views: 9162

Re: Dave Ramsey says to give up employer 401K match to pay down debt

Between him, watching Jack Bogle interviews, and a perspective of my own parents severe financial mismanagement I have learned quite a few lessons. There is a lot I disagree with Dave on. His advice isn't for investing success. It's to help people handle debt and fix their perspective on money. If y...
by boglenomics
Thu Jun 20, 2019 6:38 pm
Forum: Personal Finance (Not Investing)
Topic: Recommendations for business bank account for LLC?
Replies: 18
Views: 1574

Re: Recommendations for business bank account for LLC?

I use Capital One Spark business checking. I have no complaints but I'm not a heavy user either. I get 2-3 payments electronically deposited monthly, 2 payments on monthly autopay then 2-3 manually transfers out monthly. Capital One Spark has been closed to new accounts while they "make improvement...
by boglenomics
Thu Jun 13, 2019 6:00 pm
Forum: Personal Investments
Topic: Purchasing home with less than 20% downpayment experiences?
Replies: 52
Views: 3657

Re: Purchasing home with less than 20% downpayment experiences?

Tricky situation that I am also facing as well. I have the assets to meet the 20% requirement and a lot more in tax advantaged accounts and some taxable account holdings. Pulling from either would be a massive taxable event and greatly outweigh the PMI cost. Tapping into my emergency fund is a no go...
by boglenomics
Sat Jun 01, 2019 8:17 pm
Forum: Personal Finance (Not Investing)
Topic: Debt vs Savings
Replies: 47
Views: 4624

Re: Debt vs Savings

That is not a broadly diversified portfolio. What are the fund symbols for these? I'm curious what the expense ratios look like. Not sure what the symbols are but here's some information: American Funds Insurance Series Global Growth Fund - Class 2 : 0.80% Delaware VIP Small Cap Value Series : 1.07...
by boglenomics
Sat Jun 01, 2019 7:22 pm
Forum: Personal Investments
Topic: Tax Deferred Investments vs. Taxable??? What is better?
Replies: 10
Views: 1095

Re: Tax Deferred Investments vs. Taxable??? What is better?

Depends on what your goals are. If you want to build long term wealth for retirement / estate, tax deferred is almost always the way to go. It's the "cheapest" of all options for that target from a tax perspective. Taxable can be better if you intend to use the money prior to retirement so you don'...
by boglenomics
Sat Jun 01, 2019 7:17 pm
Forum: Personal Finance (Not Investing)
Topic: Debt vs Savings
Replies: 47
Views: 4624

Re: Debt vs Savings

I do not agree with halting the retirement contributions as I am currently not even close to saving enough so I will leave that as is for now. Never mind the casino that is the stock market, but that's for another thread. :mrgreen: This statement about the market being like a casino is a little wor...
by boglenomics
Sat Jun 01, 2019 7:13 pm
Forum: Personal Investments
Topic: Tax Deferred Investments vs. Taxable??? What is better?
Replies: 10
Views: 1095

Re: Tax Deferred Investments vs. Taxable??? What is better?

Depends on what your goals are. If you want to build long term wealth for retirement / estate, tax deferred is almost always the way to go. It's the "cheapest" of all options for that target from a tax perspective. Taxable can be better if you intend to use the money prior to retirement so you don't...
by boglenomics
Wed May 29, 2019 8:16 pm
Forum: Personal Finance (Not Investing)
Topic: Can I afford this 2.3 million dollar home?
Replies: 273
Views: 28018

Re: Can I afford this 2.3 million dollar home?

Thanks, all. Would rather not disclose professions but we are both professionals - not corporate execs or similar. To be clear the income I’m using as projected is fairly conservative. Expect max future income combined to be closer to 1.4. Of course catastrophes happen and nobody can be totally sec...
by boglenomics
Wed May 29, 2019 7:38 pm
Forum: Personal Investments
Topic: Inverted Yield Curve, should i be buying VBTLX?
Replies: 26
Views: 3606

Re: Inverted Yield Curve, should i be buying VBTLX?

The link seems broken but I would "stay the course". It's just noise. VBTLX consists of different maturity dates in the underlying fixed income assets so an inversion of the yield curve shouldn't cause too much of a stir. If you're curious here's the maturity breakdown: https://investor.vanguard.com...
by boglenomics
Wed May 29, 2019 7:31 pm
Forum: Personal Finance (Not Investing)
Topic: Can I afford this 2.3 million dollar home?
Replies: 273
Views: 28018

Re: Can I afford this 2.3 million dollar home?

Running under the assumption that your incomes are stable and transferrable to somewhere in the same location at the same rate if you were to leave your companies it's certainly affordable assuming that's all true. If I were in your shoes personally (depending on the area) I would not. Plenty of enj...
by boglenomics
Wed May 29, 2019 7:22 pm
Forum: Investing - Theory, News & General
Topic: Wealthfront now offers 2.51% APY
Replies: 84
Views: 10816

Re: Wealthfront now offers 2.51% APY

In the non-FDIC world of money there's also a big difference between the players as well. Wealthfront has a $11.4 billion AUM and has not made a profit or been able to run at cost vs. the multi-trillion AUM of Schwab, Vanguard, and Fidelity who are also covering the cost of business operations succe...
by boglenomics
Tue May 28, 2019 8:25 pm
Forum: Investing - Theory, News & General
Topic: Wealthfront now offers 2.51% APY
Replies: 84
Views: 10816

Re: Wealthfront now offers 2.51% APY

Interesting, thanks for the info! Having a non-FDIC middleman between me and my funds is just as risky as holding VMMXX or any non-FDIC money in my thinking. Being a former Wealthfront client (leaving after the risk parity scandal & discovering BH) and knowing they have not become profitable I'll st...
by boglenomics
Tue May 28, 2019 8:11 pm
Forum: Investing - Theory, News & General
Topic: Wealthfront now offers 2.51% APY
Replies: 84
Views: 10816

Re: Wealthfront now offers 2.51% APY

The FDIC to $1M claim seems a bit strange. They are not a national bank association so I assume they then are partnering with multiple banks? Are they opening an account on behalf of each client instead of as an institution to ensure they stay under the true $250K threshold per institution? What hap...
by boglenomics
Mon May 27, 2019 7:37 pm
Forum: Personal Investments
Topic: Capital One MMA or Vanguard MMMF??
Replies: 3
Views: 576

Re: Capital One MMA or Vanguard MMMF??

For me the ~.4% difference in yield is worth it for the FDIC coverage, the fantastic customer service / technology, and quick transfer of money to my checking account which is also with Capital One. After tax consideration the yield difference is even less. If that separation of yield grows by much ...
by boglenomics
Thu Jan 24, 2019 6:46 pm
Forum: Personal Investments
Topic: Buy pacific gas and electric?
Replies: 47
Views: 5144

Re: Buy pacific gas and electric?

Your friend needs to rethink their strategy immediately. Even if in some miraculous chance PGE is able to avoid the penalties and avoid their impending bankruptcy that is a massive amount of risk to take on. Not only is their job on the line, they now put $65K in the same asset that guarantees their...
by boglenomics
Fri Jan 18, 2019 5:46 pm
Forum: Personal Finance (Not Investing)
Topic: Is it worth moving
Replies: 7
Views: 862

Re: Is it worth moving

I would stay with your current bank if you are happy with the service. Despite my assessment of other banks currently offering higher interest rates I continue to stay with my current provider and have for years. If I was always chasing the extra 0.1 - 0.2% because another provider adjusts to the ra...