Search found 1139 matches

by Escapevelocity
Sun Feb 25, 2024 8:11 am
Forum: Personal Investments
Topic: Retiring at 55 / Feedback requested
Replies: 28
Views: 5760

Re: Retiring at 55 / Feedback requested

This won't impact any advice but I'm curious if yor healthcare expense is included in the $150k spend or incremental.
by Escapevelocity
Fri Feb 23, 2024 2:57 pm
Forum: Personal Consumer Issues
Topic: Anyone use Shoe Goo to increase the life of their shoes
Replies: 38
Views: 3774

Re: Anyone use Shoe Goo to increase the life of their shoes

BenMcCool wrote: Thu Feb 22, 2024 7:20 pm I've used it for years to extend the life of my shoes. The outside of my heels wear quickly because of the way I walk, and Shoe Goo enables me to wear shoes until the entire sole is worn out.
Could you please elaborate? Do you spread it cross a portion of the soles like peanut butter? How does it affect the traction?
by Escapevelocity
Thu Feb 22, 2024 8:40 am
Forum: Personal Finance (Not Investing)
Topic: Just did my own taxes for first time - owed $5k
Replies: 57
Views: 7897

Re: Just did my own taxes for first time - owed $5k

Did you have any employer stock options that you sold during the year? A common mistake is to put in the wrong basis on the sale resulting in erroneous capital gains.
by Escapevelocity
Mon Feb 19, 2024 9:41 am
Forum: Personal Consumer Issues
Topic: Anyone use Bilt to pay rent?
Replies: 102
Views: 12114

Re: Anyone use Bilt to pay rent?

Leesbro63 wrote: Sun Jan 21, 2024 5:38 am So what is the best way to use BILT points if you don’t travel?
Do you mean zero travel? Because the hotel partners could get you some nice stays for road trips or local "staycations"

If you do literally no travel then I wouldn't get too excited about this card. You can use the points for statement credits but at a vastly reduced value per point.
by Escapevelocity
Sat Feb 17, 2024 10:38 am
Forum: Personal Investments
Topic: 2023 US Government %'s on Fidelity Money Markets
Replies: 19
Views: 1824

Re: 2023 US Government %'s on Fidelity Money Markets

How is that possible? Doesn’t a government money market fund invest almost exclusively in US government securities? What you seek is "Treasury Only" money market like FDLXX. The Treasury money market often contains Treasury Repos which are not state tax exempted. Even a Treasury Only MM is about 90% or so Treasury. To get the full amount, you can purchase Tbill directly. Tbills are actually higher yielding at the moment at around 5.2% vs Treasury only yield of 4.78%. On the downside, it's more of a pain because you have to purchase them in $1K blocks (less if you use treasury direct) and it's harder to redeem in a hurry. Thanks for that feedback. Interestingly the Schwab US Treasury Money Market Fund had 99.6% and has a slightly ...
by Escapevelocity
Sat Feb 17, 2024 7:36 am
Forum: Personal Investments
Topic: 2023 US Government %'s on Fidelity Money Markets
Replies: 19
Views: 1824

Re: 2023 US Government %'s on Fidelity Money Markets

feh wrote: Sat Feb 17, 2024 7:14 am
greenrebellion wrote: Sat Feb 17, 2024 7:12 am Based on my review for my taxes:

SPAXX = 41.18% - Fidelity® Government Money Market Fund
FZFXX = 24.19% - Fidelity® Treasury Money Market Fund
Correct.

I just switched my core account from FZFXX to SPAXX for the higher percentage I can deduct from my state taxes, assuming the percentages will be similar for 2024.

Not too happy that the "Treasury MM Fund" is only 24% treasuries. :annoyed
How is that possible? Doesn’t a government money market fund invest almost exclusively in US government securities?
by Escapevelocity
Thu Feb 01, 2024 11:16 am
Forum: Investing - Theory, News & General
Topic: Buy Borrow Die & Risk
Replies: 75
Views: 18499

Re: Buy Borrow Die & Risk

I hope that OP does not implement proposed strategy. I'd rather see taxes paid on a PAYGO basis considering LTCG rates are quite favorable and reasonable when viewed in the context of regular income tax rates. Also, I could foresee that step up in basis on death is curtailed at some point considering the need to close deficit which would blow up such a strategy.
by Escapevelocity
Wed Jan 24, 2024 5:51 am
Forum: US Chapters
Topic: 🎁 🎉Happy 100th Birthday to Taylor Larimore 🎊🎂
Replies: 429
Views: 41946

Re: 🎁 🎉Happy 100th Birthday to Taylor Larimore 🎊🎂

Happy Birthday Taylor and thank you for your service to this community and our country.
by Escapevelocity
Mon Jan 15, 2024 11:03 am
Forum: Personal Investments
Topic: Locked-out of Treasury Direct
Replies: 50
Views: 9453

Re: Locked-out of Treasury Direct

I've also been locked out my Treasury Direct account. Last time I logged on was over 10 years ago. Luckily, I only got paper I-bonds before they stopped offering that and can redeem them through my bank. I also can check the returns on my specific I-bonds by entering their serial number without logging on to Treasury Direct. I was thinking about buying more I-Bonds, the electronic variety, but I guess not. You can call Treasury Direct and have them unlock your account. They are quite rigorous about security though, so you may need to remember answers to security questions you gave them many years ago. My wife's account was locked today. She called. They are RIDICULOUSLY rigorous with the questions they ask both in terms of the number of qu...
by Escapevelocity
Mon Jan 08, 2024 9:09 am
Forum: Personal Finance (Not Investing)
Topic: Rule of 55 - Restricions Based on SPD?
Replies: 8
Views: 922

Re: Rule of 55 - Restricions Based on SPD?

rob wrote: Mon Jan 08, 2024 8:11 am I expect the plan has to allow partial distributions rather than the entire balance for it to be workable.
This is accurate. The other thing to point out is the rule of 55 is an IRS regulation and has nothing to do with company policy or company retirement rules. The partial withdrawal feature of your particular 401k is more of a tax planning issue than a rule since there is no legal requirement that they need to allow you to make a partial withdrawal and if not you likely don't want the entire amount hitting your taxable income all at once.
by Escapevelocity
Wed Jan 03, 2024 4:21 am
Forum: Investing - Theory, News & General
Topic: The Final, Definitive Thread on Brokerage Transfer Bonuses
Replies: 7737
Views: 1337924

Re: The Final, Definitive Thread on Brokerage Transfer Bonuses

tj wrote: Mon Dec 18, 2023 3:32 pm
Escapevelocity wrote: Mon Dec 18, 2023 3:29 pm
indexfundfan wrote: Sat Dec 16, 2023 8:17 pm
michaeljc70 wrote: Sat Dec 16, 2023 7:46 pm I'm getting my $2500 bonus from WF as I said above. I have accounts at Fidelity and Schwab. Which is more likely to offer me something to move $500k-$900k more there? What is the best method to contact them for this discussion? It is mostly retirement $$$ so a lot of the public offers won't work for me. I was probably going to pick one or the other to consolidate even if I get nothing.
I spoke to Fidelity recently. The rep told me they currently don't have any bonus for transfers less than $1m.
I just got the same reply (after speaking to 3 different people).
Did they say what they offer for $1M ?
No I didn’t ask because I was only doing $500k. Went with Schwab for $1000
by Escapevelocity
Mon Dec 18, 2023 3:29 pm
Forum: Investing - Theory, News & General
Topic: The Final, Definitive Thread on Brokerage Transfer Bonuses
Replies: 7737
Views: 1337924

Re: The Final, Definitive Thread on Brokerage Transfer Bonuses

indexfundfan wrote: Sat Dec 16, 2023 8:17 pm
michaeljc70 wrote: Sat Dec 16, 2023 7:46 pm I'm getting my $2500 bonus from WF as I said above. I have accounts at Fidelity and Schwab. Which is more likely to offer me something to move $500k-$900k more there? What is the best method to contact them for this discussion? It is mostly retirement $$$ so a lot of the public offers won't work for me. I was probably going to pick one or the other to consolidate even if I get nothing.
I spoke to Fidelity recently. The rep told me they currently don't have any bonus for transfers less than $1m.
I just got the same reply (after speaking to 3 different people).
by Escapevelocity
Sun Dec 10, 2023 11:21 am
Forum: Personal Finance (Not Investing)
Topic: MegaCorp Blues - Need your advice!
Replies: 33
Views: 3794

Re: MegaCorp Blues - Need your advice!

CletusCaddy wrote: Sat Dec 09, 2023 4:03 pm With $40k expenses and $3M saved I would not work at all.
You can withstand a long period of unemployment.....as in permanently. I would look for another position outside the company if you really want to keep working.
by Escapevelocity
Sun Nov 26, 2023 9:39 am
Forum: Investing - Theory, News & General
Topic: The Final, Definitive Thread on Brokerage Transfer Bonuses
Replies: 7737
Views: 1337924

Re: The Final, Definitive Thread on Brokerage Transfer Bonuses

I will be getting around $500k from sale of a house in about a month. I plan to invest that in a combination of equity index ETFs and Treasuries. What is the most lucrative place to deposit these funds from a bonus perspective?
by Escapevelocity
Tue Oct 24, 2023 9:06 am
Forum: Personal Finance (Not Investing)
Topic: Delaying Social Security is getting less advantageous
Replies: 258
Views: 223823

Re: Delaying Social Security is getting less advantageous

When (roughly what date) does SSA update the AWI each year? When do these new data points get incorporated into the future monthly benefits as calculated on the MY SSA website for people who have not reached age 60 yet? There are tons of news stories about the COLA and the new benefit for current retirees, but I cannot find anything as far as press releases on the AWI annual updates.
by Escapevelocity
Wed Oct 18, 2023 4:55 pm
Forum: Investing - Theory, News & General
Topic: High TIPS Yields are a Retiree's Best Friend - John Reckenthaler
Replies: 62
Views: 9947

Re: High TIPS Yields are a Retiree's Best Friend - John Reckenthaler

Very interesting point that a relatively small 100% stock allocation has a good chance, if left untouched, to reach a substantial sum 30 years on when the tips ladder expires. Usually a tips ladder is framed as giving up returns for certainty but if it allows you to keep a 100% stock allocation untouched for 30 years perhaps not. This isn’t a point I’ve read in the other tips threads. I'm not sure shifting almost the entire asset value into a locked in place income stream is reasonable even though in theory one can raid the TIPS ladder if needed. It is similar to deciding how much of one's assets one might annuitize or how much extra one might spend to delay Social Security for a higher payout. A lot would depend on what the existing incom...
by Escapevelocity
Sat Oct 14, 2023 5:38 am
Forum: Personal Consumer Issues
Topic: Comic Sans MS typeface is sorta gone???
Replies: 24
Views: 3301

Re: Comic Sans MS typeface is sorta gone???

Miriam2 wrote: Sat Oct 14, 2023 3:53 am
Fun video! quite interesting, thanks :happy I use Comic Sans for many things, especially invitations, notices, and fun letters & emails. I don't see why it should be contentious, it's just more "artsy" and less formal.
The contentiousness stems from people using a folksy font in formal circumstances which comes across as silly
by Escapevelocity
Wed Oct 04, 2023 9:52 am
Forum: Personal Investments
Topic: Locked-out of Treasury Direct
Replies: 50
Views: 9453

Re: Locked-out of Treasury Direct

mepaus wrote: Tue Oct 03, 2023 11:53 am I called, they asked my questions, and then said I had to send in the Form FS 5444. Sent on 9/21. They emailed they got it on 9/25. The email said would take up to 20 weeks.

I can’t find any recent posts on if it really is taking 20 weeks.
Good lord.
by Escapevelocity
Wed Oct 04, 2023 9:49 am
Forum: Personal Investments
Topic: Locked-out of Treasury Direct
Replies: 50
Views: 9453

Re: Locked-out of Treasury Direct

I've also been locked out my Treasury Direct account. Last time I logged on was over 10 years ago. Luckily, I only got paper I-bonds before they stopped offering that and can redeem them through my bank. I also can check the returns on my specific I-bonds by entering their serial number without logging on to Treasury Direct. I was thinking about buying more I-Bonds, the electronic variety, but I guess not. You can call Treasury Direct and have them unlock your account. They are quite rigorous about security though, so you may need to remember answers to security questions you gave them many years ago. My wife's account was locked today. She called. They are RIDICULOUSLY rigorous with the questions they ask both in terms of the number of qu...
by Escapevelocity
Tue Oct 03, 2023 8:06 pm
Forum: Personal Consumer Issues
Topic: How much do you spend a month on food?
Replies: 334
Views: 29235

Re: How much do you spend a month on food?

https://www.fns.usda.gov/sites/default/files/resource-files/CostofFoodAug2023LowModLib.pdf Yes you are very high. Above is a link for usda idea of what a low moderate and liberal food budget should be. I am in between moderate and liberal personally for food budget. That said what I spend has no bearing on what you should spend. If you don't like your budget change it. You certainly can cut back. Note the article is "Food at Home". OP is including restaurants. If you take the liberal numbers from the PDF and then add in restaurant allowances it is easy to see how to get to $2400. The liberal numbers from the PDF for a family of 4 amount to approximately $1,000-$1,500/month, depending on the age of the kids. This would mean the OP...
by Escapevelocity
Tue Oct 03, 2023 10:37 am
Forum: Investing - Theory, News & General
Topic: Now that long TIPS yields are 60 bp off their highs I will…
Replies: 2937
Views: 611923

Re: Now that long TIPS have surged past 2.25% I will…

dalbright wrote: Tue Oct 03, 2023 10:32 am Well thanks to this thread I finally caved and bought my first TIPS at 2.52%. Went to the end of the curve at 2050 and picked up a few...If only between these and STRIPS I could turn off the mark to market pricing on vanguard every login for a few years! I have to wait a few days for ibonds i sold to settle before even considering more.
My Ibond proceeds hit my Fidelity brokerage account within 24 hours.
by Escapevelocity
Tue Oct 03, 2023 10:30 am
Forum: Investing - Theory, News & General
Topic: Now that long TIPS yields are 60 bp off their highs I will…
Replies: 2937
Views: 611923

Re: Now that long TIPS have surged past 2.25% I will…

TipsQuestions wrote: Tue Oct 03, 2023 10:17 am
aj76er wrote: Tue Oct 03, 2023 10:00 amBuying LTPZ at 2% - 3% real yields (and holding for its duration) is locking in equity-like returns.
Note that expected equity returns are relative to bonds. If the market is demanding 5% from risk free treasuries, it's demanding quite a bit more (historically around 4% on average) from stocks. Of course, that doesn't mean we'll actually get those returns, which is why we buy TIPS anyway.
The interesting thing is that the risk free real return component of TIPS is worth different things to different people. A retiree values that guaranteed buying power a lot more than a 30 year old asset accumulator. It seems that, overall, there is not that much appetite for the intrinsic value proposition of TIPS, hence the rising yields.
by Escapevelocity
Mon Oct 02, 2023 4:15 pm
Forum: Investing - Theory, News & General
Topic: Now that long TIPS yields are 60 bp off their highs I will…
Replies: 2937
Views: 611923

Re: Now that long TIPS have surged past 2.25% I will…

Oliver wrote: Mon Oct 02, 2023 4:06 pm In case you are just joining the thread, this blog post from a financial advisor talks about "SWR" using TIPS. It was done last year when TIPS were yielding 1.7%.

The 4% Rule Just Became a Whole Lot Easier
by Allan Roth, 10/24/22

https://www.advisorperspectives.com/art ... lot-easier
I'd like to see an update to that article using current yields.
by Escapevelocity
Thu Sep 28, 2023 6:08 pm
Forum: Personal Finance (Not Investing)
Topic: How Estimate SS Benefit When Retire Early?
Replies: 16
Views: 2513

Re: How Estimate SS Benefit When Retire Early?

Incognito2u wrote: Thu Sep 28, 2023 6:00 pm How can I estimate my social security benefit if I plan to stop working in 3 years at age 65 but defer starting benefits until age 70?

The SSA website offers estimates at different retirement ages but seems to assume working until starting the benefit. Thanks
The website allows you to replace it's estimated future income with whatever you want to assume. It defaults to your most recent income but you can enter anything including zero.
by Escapevelocity
Thu Sep 28, 2023 2:52 pm
Forum: Personal Investments
Topic: Can You Help Me Understand This Bond (TIPS) Purchase?
Replies: 23
Views: 1483

Re: Can You Help Me Understand This Bond (TIPS) Purchase?

Hello BH, If I buy this bond, does it mean that I am guaranteed to get 2.3% real for 30 years? I've always heard that if it sounds to good to be true, it probably is. Is this 2.37% real or nominal? If it's real, why wouldn't I swap my entire bond allocation to this bond? https://i.postimg.cc/L8K7bXGS/TIP.png If the market yield on these same bonds goes from 2.3% real to 3% real as a hypothetical, then your bond purchased with a 2.3% real yield will be worth maybe 20% less in terms of its liquid market value if you needed to sell immediately rather than hold to maturity (0.7% below market yield multiplied by 30 years). But that just means I can rebalance (sell stocks to buy bonds) at a higher expected return on my bonds right? Seems like a ...
by Escapevelocity
Thu Sep 28, 2023 2:49 pm
Forum: Personal Investments
Topic: [Safe Withdrawal Rate] Are you 3% and why/why not?
Replies: 222
Views: 24450

Re: Are you 3% and why/why not?

mike@jb wrote: Thu Sep 28, 2023 8:32 am Three years into retirement, our withdrawal rate averages to 3.2%.
I expect to be sub-4% for another 3 years when Social Security kicks in.
After SS, we should be around 2%.

Our expenses in retirement have been somewhat less than I anticipated.
I am not adhering to a "3% rule". We can go to 4+% if we need a new car or want a big vacation.
Life's short ...
you worked too long
by Escapevelocity
Thu Sep 28, 2023 9:34 am
Forum: Personal Investments
Topic: Can You Help Me Understand This Bond (TIPS) Purchase?
Replies: 23
Views: 1483

Re: Can You Help Me Understand This Bond (TIPS) Purchase?

JSPECO9 wrote: Thu Sep 28, 2023 9:20 am Hello BH,

If I buy this bond, does it mean that I am guaranteed to get 2.3% real for 30 years? I've always heard that if it sounds to good to be true, it probably is. Is this 2.37% real or nominal? If it's real, why wouldn't I swap my entire bond allocation to this bond?

Image
If the market yield on these same bonds goes from 2.3% real to 3% real as a hypothetical, then your bond purchased with a 2.3% real yield will be worth maybe 20% less in terms of its liquid market value if you needed to sell immediately rather than hold to maturity (0.7% below market yield multiplied by 30 years).
by Escapevelocity
Thu Sep 28, 2023 9:01 am
Forum: Investing - Theory, News & General
Topic: Now that long TIPS yields are 60 bp off their highs I will…
Replies: 2937
Views: 611923

Re: Now that long TIPS have surged past 2.25% I will…

Svensk Anga wrote: Thu Sep 28, 2023 8:32 am
Escapevelocity wrote: Wed Sep 27, 2023 9:43 pm Anyone care to speculate why real yields on TIPS are spiking now? Is it the same reason that nominal yields are rising or something different?
I wonder if some of this is a short-term effect due to problems getting a federal budget passed before the new fiscal year starting Sunday. Uncertainty or risk aversion could create a temporarily lower demand for treasuries causing prices to fall/yield rise.
That seems counterintuitive because treasuries are normally considered the safest of assets to hold. Even moreso with TIPS since they include an inflation insurance policy.
by Escapevelocity
Wed Sep 27, 2023 9:43 pm
Forum: Investing - Theory, News & General
Topic: Now that long TIPS yields are 60 bp off their highs I will…
Replies: 2937
Views: 611923

Re: Now that long TIPS have surged past 2.25% I will…

Anyone care to speculate why real yields on TIPS are spiking now? Is it the same reason that nominal yields are rising or something different?
by Escapevelocity
Wed Sep 27, 2023 9:17 pm
Forum: Personal Investments
Topic: [Safe Withdrawal Rate] Are you 3% and why/why not?
Replies: 222
Views: 24450

Re: Are you 3% and why/why not?

CletusCaddy wrote: Wed Sep 27, 2023 9:08 pm What in the world….

If anything the SWR should be higher than 4% now that long term TIPS are paying 2.3%
I agree. 3% seems way too conservative in a world where government fixed income (TIPS) is providing 2.5% real. For the record, I am currently withdrawing approx 4.2% based on gap spend (total expenses minus guaranteed income from SS and pension) after backing out my bridge fund to SS.
by Escapevelocity
Wed Sep 06, 2023 9:43 am
Forum: Personal Finance (Not Investing)
Topic: Do we have too much in 401K and IRA?
Replies: 67
Views: 7442

Re: Do we have too much in 401K and IRA?

valleywest wrote: Wed Sep 06, 2023 9:19 am
vnatale wrote: Tue Sep 05, 2023 12:22 pm
Escapevelocity wrote: Tue Sep 05, 2023 8:10 am
CletusCaddy wrote: Mon Sep 04, 2023 9:54 am
pizzy wrote: Mon Sep 04, 2023 9:51 am 2) There is no such as thing as too much.
Tell that to the people getting hit with RMDs at 40%+ tax rate
Why is it so horrible to pay taxes when you’re really wealthy?
Correct. Far more desirable than having no taxes due to low income.
People always seem to forget that is not the wealthy people that pay more tax, it is the working people with high income. There is a distinct difference.
Not following this argument in the context of the OP. By definition, if you have high taxes due to high RMD then you are fairly wealthy.
by Escapevelocity
Wed Sep 06, 2023 8:05 am
Forum: Investing - Theory, News & General
Topic: Small Cap Volatility
Replies: 32
Views: 1434

Re: Small Cap Volatility

I would guess that the prices of stocks are not independent. So, some of the volatility is due to the volatility of the constituents (random movement that approximately averages to zero), some is due to the volatility of the particular stock group, and some is due to the volatility of the market. I suppose that is the point of factors - some groups of stocks move independently of the market and of other groups. Nah. Small stocks are just more risky. And that’s why they are more volatile? I assume you aren’t using volatility as the measure of risk. Well, why not? Volatility is a valid measure of risk. It is nice, simple, and actionable. I know it is fun to dump on volatility because it is a simpler method, and since I actually work in risk ...
by Escapevelocity
Wed Sep 06, 2023 8:03 am
Forum: Investing - Theory, News & General
Topic: Small Cap Volatility
Replies: 32
Views: 1434

Re: Small Cap Volatility

Startled Cat wrote: Tue Sep 05, 2023 4:14 pm Just an uninformed observation, but I've noticed SCV seems to be relatively sensitive to interest rates, and interest rates have been pretty volatile recently.
I've noticed this also. Seems like the exposure and risks related to financing costs for small businesses is greater.
by Escapevelocity
Tue Sep 05, 2023 11:15 am
Forum: Investing - Theory, News & General
Topic: Does Anyone Actually Run Down Funds in Retirement?
Replies: 361
Views: 49562

Re: Does Anyone Actually Run Down Funds in Retirement?

The problem is that annuity is very expensive as they basically lock in bottom 5% results. You get the same 4% real as the investors get but you have zero dollars 100% of the time while 50% of the time the investors have 2x+ their starting portfolio in 30 years. With a SPIA at least you know the payout rate up front. You can reverse-engineer and apply discount rates to determine the investment return that the insurance company is assuming they can earn on your money. There are retirees who would otherwise keep their savings in bank CDs and that's worse. At current rates., CDs doesn’t sound bad at all (compared to Annuities) - especially given, you get FDIC federal protection., and also you get your “principal” back with CDs whenever you ne...
by Escapevelocity
Tue Sep 05, 2023 10:31 am
Forum: Investing - Theory, News & General
Topic: Small Cap Volatility
Replies: 32
Views: 1434

Small Cap Volatility

I have about 16% of my stock portolio in small cap value ETFs (IJS and AVUV). I've noticed that these funds are far more volatile than the SP500 and total market funds. I can understand why individual small stocks would tend to be more volatile, but why is it that small stocks in aggregate are so much more volatile than large caps?
by Escapevelocity
Tue Sep 05, 2023 10:28 am
Forum: Personal Finance (Not Investing)
Topic: Do we have too much in 401K and IRA?
Replies: 67
Views: 7442

Re: Do we have too much in 401K and IRA?

CletusCaddy wrote: Tue Sep 05, 2023 9:19 am
Escapevelocity wrote: Tue Sep 05, 2023 8:10 am
CletusCaddy wrote: Mon Sep 04, 2023 9:54 am
pizzy wrote: Mon Sep 04, 2023 9:51 am 2) There is no such as thing as too much.
Tell that to the people getting hit with RMDs at 40%+ tax rate
Why is it so horrible to pay taxes when you’re really wealthy?
Because you could have paid less taxes if that money was in taxable.
Maybe. But then they wouldn't have gotten the upfront deduction
by Escapevelocity
Tue Sep 05, 2023 8:10 am
Forum: Personal Finance (Not Investing)
Topic: Do we have too much in 401K and IRA?
Replies: 67
Views: 7442

Re: Do we have too much in 401K and IRA?

CletusCaddy wrote: Mon Sep 04, 2023 9:54 am
pizzy wrote: Mon Sep 04, 2023 9:51 am 2) There is no such as thing as too much.
Tell that to the people getting hit with RMDs at 40%+ tax rate
Why is it so horrible to pay taxes when you’re really wealthy?
by Escapevelocity
Fri Sep 01, 2023 8:25 pm
Forum: Personal Investments
Topic: I decided to put about 24% of my equity holdings into top "tech" stocks
Replies: 108
Views: 13133

Re: I decided to put about 24% of my equity holdings into top "tech" stocks

I see what you did there lol. Post might fail the actionable test though.
by Escapevelocity
Thu Aug 17, 2023 9:53 am
Forum: Investing - Theory, News & General
Topic: Is there a sort of easy way to decide when TIPS rates are worth backing the truck up on?
Replies: 116
Views: 11283

Re: Is there a sort of easy way to decide when TIPS rates are worth backing the truck up on?

When will know when a TIPS's rate is a good one? As I am learning, I think TIPS are protection against unexpected inflation. So I think it would be impossible to know. But I've always had a hard time wrapping my head around TIPS, so please take this with a grain of salt. The "impossible to know" part is only a conundrum if your yardstick for investment returns is nominal. If your comparative yardstick is real returns, it can make things easier. (at least it does for me) i.e. if I think stocks are likely to return 4% real over next 10 years (but with a high degree of uncertainty), does a guaranteed real yield of 1.95% (today's 10YR TIPS yield) over the next 10 years look like an attractive alternative that could meet my needs? Or,...
by Escapevelocity
Tue Aug 15, 2023 2:36 pm
Forum: Investing - Theory, News & General
Topic: How to calculate par value for existing TIPs?
Replies: 8
Views: 1027

Re: How to calculate par value for existing TIPs?

grok87 wrote: Sun Aug 13, 2023 7:47 pm
Escapevelocity wrote: Sun Aug 13, 2023 7:15 pm I’m fairly certain that the sell price minus the purchase price of the bond becomes a capital gain or loss regardless of whether the bond is trading below par.
i think your statement is not quite right but close. it is the "sell price minus the ADJUSTED purchase price". the two adjustments are for amortization of any premium/discount paid and for the inflation adjustments to principal. it's also worth mentioning that the prices here should ignore any accrued interest.

cheers,
grok
Thank you for the clarification. Very informative.
by Escapevelocity
Sun Aug 13, 2023 7:15 pm
Forum: Investing - Theory, News & General
Topic: How to calculate par value for existing TIPs?
Replies: 8
Views: 1027

Re: How to calculate par value for existing TIPs?

I’m fairly certain that the sell price minus the purchase price of the bond becomes a capital gain or loss regardless of whether the bond is trading below par.
by Escapevelocity
Sun Aug 06, 2023 7:56 am
Forum: Personal Investments
Topic: If you had 9 million dollars and were 65…..
Replies: 140
Views: 19624

Re: If you had 9 million dollars and were 65…..

Do you need any friends?
by Escapevelocity
Fri Jul 28, 2023 6:36 am
Forum: Investing - Theory, News & General
Topic: treasury bonds returns higher than AAA corporate bonds [How to achieve returns w/little risk and 6-7% return?]
Replies: 70
Views: 5379

Re: treasury bonds returns higher than AAA corporate bonds [How to achieve returns w/little risk and 6-7% return?]

I have been playing around with portfolio visualizer and notice that intermediate treasury is returning higher than total bond market and corporate bond in monte carlo simulation over 30 years. This lead me to wonder how this could be since there should be a corporate bond premium. I did see an article about this: https://www.etf.com/sections/index-investor-corner/swedroe-are-corp-bonds-worth-risk By the article, Swedroe appears to be suggesting that excluding corporate bonds may not be a bad idea. * Treasury has lower correlation with stock than corporate bonds. * Treasury are exempted from state tax. * Treasury are more liquid. * Swedroe suggest looking at CD as an alternative to corporate bonds. I’ve reached these exact conclusions inde...
by Escapevelocity
Thu Jul 27, 2023 2:24 pm
Forum: Personal Investments
Topic: Agency/GSE vs US treasury investing
Replies: 2
Views: 321

Re: Agency/GSE vs US treasury investing

Molson7 wrote: Thu Jul 27, 2023 2:21 pm Looking for help with a potential investment. I've been purchasing 3 month treasuries in some of my Fidelity accounts since last year. When comparing rates today I saw the 10yr agency/gse bonds at 6.13%. That's enticing.

My question is, how do agency/gse investments vary from us treasury investments? When asking i'm making considerations for where to invest approx $200k currently sitting in Fidelity SPAXX.

Thanks in advance for your thoughts
That bond is continuously callable. Most of these long duration agency bonds are callable particularly the juicy yields. When do you plan to spend this money? You can filter for call protection to see what is available in the non callable option
by Escapevelocity
Thu Jul 27, 2023 2:21 pm
Forum: Investing - Theory, News & General
Topic: treasury bonds returns higher than AAA corporate bonds [How to achieve returns w/little risk and 6-7% return?]
Replies: 70
Views: 5379

Re: How to achieve returns w/little risk and 6-7% return?

Econberkeley wrote: Thu Jul 27, 2023 2:11 pm
toddthebod wrote: Thu Jul 27, 2023 2:01 pm
Econberkeley wrote: Thu Jul 27, 2023 1:52 pm
the_wiki wrote: Thu Jul 27, 2023 11:38 am How long to you expect to be able to receive these fantastical riskless returns?
Let me be clear

Riskless return is 5.5% by UST bonds maturing in 1 year

I want a little risk and get a return around 7% in 1 year

But I can not find such a financial instrument.

Please help me find it
Then why are you looking at AAA bonds?
Because that is the closest financial instrument with least risk
There’s no free lunch. Low risk equals low reward
by Escapevelocity
Thu Jul 27, 2023 2:08 pm
Forum: Investing - Theory, News & General
Topic: treasury bonds returns higher than AAA corporate bonds [How to achieve returns w/little risk and 6-7% return?]
Replies: 70
Views: 5379

Re: How to achieve returns w/little risk and 6-7% return?

Econberkeley wrote: Thu Jul 27, 2023 1:52 pm
the_wiki wrote: Thu Jul 27, 2023 11:38 am How long to you expect to be able to receive these fantastical riskless returns?
Let me be clear

Riskless return is 5.5% by UST bonds maturing in 1 year

I want a little risk and get a return around 7% in 1 year

But I can not find such a financial instrument.

Please help me find it
What do you consider a little risk? AA or A rated corp bonds are very low risk and hence only give you a small yield spread over risk less treasuries of the same duration, certainly not 150 basis points.
by Escapevelocity
Mon Jul 24, 2023 5:27 am
Forum: Personal Consumer Issues
Topic: Starbucks Service
Replies: 18
Views: 2104

Re: Starbucks Service

Last week, I went into the Starbucks at one of the NJ Turnpike rest areas. They served my plain black coffee efficiently enough, but then I realized they had eliminated the milk and sugar station completely so I had to go back to the counter to ask for those which was annoying.
by Escapevelocity
Fri Jul 21, 2023 9:39 am
Forum: Personal Investments
Topic: Afraid to Retire - Should I be…
Replies: 165
Views: 26214

Re: Afraid to Retire - Should I be…

RadAudit wrote: Wed Jul 19, 2023 6:13 am Afraid? No. Concerned? Maybe.

What are you going to do when you retire?
Is the implication that if you have nothing better to do you might as well just keep trudging to a job that you no longer want to do? Frankly, that seems like a poor reason to keep working. Even if you have nothing specific to "retire to", I'd rather retire anyway and figure it out as you go.