Search found 22 matches

by LTCM
Sat Sep 26, 2020 10:55 pm
Forum: Investing - Theory, News & General
Topic: What bonds should I look at for the next 15 year period?
Replies: 25
Views: 2972

Re: What bonds should I look at for the next 15 year period?

patrick013 wrote: Tue Sep 22, 2020 11:32 am Makes some sense but what is going to cause inflation ?
Supply side is damaged by COVID. Less workers. More expensive to make work safe for those that are left.
by LTCM
Sun Sep 20, 2020 11:10 pm
Forum: Personal Finance (Not Investing)
Topic: Paying off sub 4% mortgage interest rate early
Replies: 167
Views: 14719

Re: Paying off sub 4% mortgage interest rate early

I just did a quick google...so I'm not an expert here... but since retirements accounts are protected from bankruptcy creditors: paying off a 3.5% mortgage is not as good as getting 3.5% from the federal government in a retirement account. If you can buy $10,000 of EE bonds or pay off $10,000 extra ...
by LTCM
Sat Sep 19, 2020 11:01 pm
Forum: Investing - Theory, News & General
Topic: Reasons to invest internationally, or not.
Replies: 191
Views: 11025

Re: Reasons to invest internationally, or not.

But look at the Swiss entry. It shows a 35% general withholding rate and 15% treaty withholding rate. The KPMG report says that you have to get a refund from Switzerland for the difference between 35% and 15%. So it works like this. Nestle pays $1 in dividends. Swiss government withholds $.35. U.S....
by LTCM
Fri Sep 18, 2020 9:19 pm
Forum: Investing - Theory, News & General
Topic: Reasons to invest internationally, or not.
Replies: 191
Views: 11025

Re: Reasons to invest internationally, or not.

I'm not clear on the treaty issue but my basic understanding from coming to this blind and reading it for the first time is that the [international law] treaty gets the withholding tax down to 10% (In China's case) and then the US [domestic law] allows an investor to claim a maximum 15% tax credit w...
by LTCM
Fri Sep 18, 2020 6:12 am
Forum: Investing - Theory, News & General
Topic: Vanguard International Bonds
Replies: 42
Views: 3523

Re: Vanguard International Bonds

Also 'inflate away' the debt is looking at it the wrong way. A currency sovereign that issues a bond is really just issuing an interest bearing version of its currency. Treasuries are just dollars that provide some level of interest. They are not really "debt" in any meaningful sense of the word. A...
by LTCM
Fri Sep 18, 2020 3:24 am
Forum: Investing - Theory, News & General
Topic: Reasons to invest internationally, or not.
Replies: 191
Views: 11025

Re: Reasons to invest internationally, or not.

The problem to me is that this is an average and does not reflect specific countries. I also spitballed the average. Some countries, potentially many, are withholding higher percentages, so we're supposed to file for refunds to get those back. One paper I saw said that Germany withholds an effectiv...
by LTCM
Thu Sep 17, 2020 6:01 am
Forum: Investing - Theory, News & General
Topic: First 20% of bonds in long-term Treasuries
Replies: 927
Views: 68450

Re: First 20% of bonds in long-term Treasuries

What a great thread. I'm up to page 16 or so and something occurred to me (so I hope it hasn't been asked in 16-19 somewhere)... Where does a mortgage fit into this? If you're a young investor considering a 30 year treasury bond to balance your 80% stock portfolio but are also considering taking out...
by LTCM
Wed Sep 16, 2020 11:05 pm
Forum: Personal Investments
Topic: Fund Placement for beginners
Replies: 14
Views: 1030

Re: Fund Placement for beginners

2020: $19,500 for a Traditional deferral or Roth personal contribution, $37,500 for a profit-sharing/employer contribution. $57,000 limit. Reading the fine print now. If your business is an LLC taxed as a sole proprietorship or a partnership, you can contribute 20% of net profit from the business a...
by LTCM
Wed Sep 16, 2020 8:53 pm
Forum: Personal Investments
Topic: Fund Placement for beginners
Replies: 14
Views: 1030

Re: Fund Placement for beginners

I believe that in an individual 401k you have until your tax filing deadline to contribute. OK. Thanks for that. 2020: $19,500 for a Traditional deferral or Roth personal contribution, $37,500 for a profit-sharing/employer contribution. $57,000 limit. So with my low tax band it seems I should max o...
by LTCM
Wed Sep 16, 2020 7:52 am
Forum: Personal Investments
Topic: Fund Placement for beginners
Replies: 14
Views: 1030

Re: Fund Placement for beginners

More information that you probably don't need but I'll mention anyway...

My business imports items from the EU/UK mainly and sells them in the US mainly. I might guess this means I should have more exposure to international/EU markets and less USD than the average investor?
by LTCM
Tue Sep 15, 2020 10:26 pm
Forum: Personal Investments
Topic: Fund Placement for beginners
Replies: 14
Views: 1030

Re: Fund Placement for beginners

FYI - You can wait to do your IRA contribution up to the date you file your taxes, but can only contribute to 401k during the calendar year. Sorry to question this...but I just logged into the employer side of the 401k account and when I process a contribution the system asks me if I want to contri...
by LTCM
Tue Sep 15, 2020 10:07 pm
Forum: Personal Investments
Topic: Fund Placement for beginners
Replies: 14
Views: 1030

Re: Fund Placement for beginners

You mention that your spouse is a NRA. Do you foresee that status to change in the future? What is your spouse's situation in terms of retirement? It's possible. Without getting into politics we're doing wait and see right now. Things may change as soon as early next year. In terms of retirement we...
by LTCM
Tue Sep 15, 2020 9:50 pm
Forum: Investing - Theory, News & General
Topic: Reasons to invest internationally, or not.
Replies: 191
Views: 11025

Re: Reasons to invest internationally, or not.

The academic literature suggests dividend withholding taxes are a real drain on foreign equity investments. Generally, foreign countries withhold more than 15% of the dividends, the U.S. allows a foreign tax credit claim of 15%, and the investor then has to make a claim in the foreign county for a ...
by LTCM
Tue Sep 15, 2020 9:43 pm
Forum: Personal Investments
Topic: Fund Placement for beginners
Replies: 14
Views: 1030

Re: Fund Placement for beginners

Q3: I appear to be overweight international stocks compared to a lot of recommendations. Is the fact that it's not sensible to place the international stocks in a taxable account and claim the foreign tax credit reason to be less overweight on international? If the "standard" expense ratio on an int...
by LTCM
Tue Sep 15, 2020 9:24 pm
Forum: Personal Investments
Topic: Fund Placement for beginners
Replies: 14
Views: 1030

Re: Fund Placement for beginners

Tax-efficient_fund_placement https://www.bogleheads.org/wiki/Tax-efficient_fund_placement I found that article (and the book) tough going since it seems to assume you've maxed out all your tax advantaged accounts (nice!) but I'm not close to that. There is a step that seems to apply though: Step 4:...
by LTCM
Tue Sep 15, 2020 9:16 pm
Forum: Personal Investments
Topic: Fund Placement for beginners
Replies: 14
Views: 1030

Re: Fund Placement for beginners

Eagle33 wrote: Tue Sep 15, 2020 8:39 pm FYI - You can wait to do your IRA contribution up to the date you file your taxes, but can only contribute to 401k during the calendar year.
So I have to do my taxes before April to get the best contribution method?!

The horror.
by LTCM
Tue Sep 15, 2020 3:31 am
Forum: Personal Investments
Topic: Fund Placement for beginners
Replies: 14
Views: 1030

Re: Fund Placement for beginners

Questions : 1. I read in the book about taxable accounts and tax advantaged accounts. To clarify...I currently have 1 tax deferred account (401k) and 3 tax free accounts (Roth-401K, Roth IRA, 529) correct? What is the best way to allocate my money/funds between these accounts? Should I stick with w...
by LTCM
Tue Sep 15, 2020 1:00 am
Forum: Investing - Theory, News & General
Topic: Upon reading 'The Bogleheads' Guide to Investing'
Replies: 13
Views: 1259

Re: Upon reading 'The Bogleheads' Guide to Investing'

000 wrote: Tue Sep 15, 2020 12:53 am No. The index funds' existing holding of TSLA doubled in value without doing anything at all because the price went up.
Durrrr!

:oops:

Thank you
by LTCM
Tue Sep 15, 2020 12:46 am
Forum: Investing - Theory, News & General
Topic: Upon reading 'The Bogleheads' Guide to Investing'
Replies: 13
Views: 1259

Re: Upon reading 'The Bogleheads' Guide to Investing'

cap-weighted index funds only trade when stocks enter or exit the index Oh really? I assumed otherwise. I figured that if TSLA was 1% of the market cap in 2019 and was 2% in 2020 then the index fund had to double their holding? They don't do that? Surely after a while it stops being representative ...
by LTCM
Mon Sep 14, 2020 11:24 pm
Forum: Investing - Theory, News & General
Topic: Upon reading 'The Bogleheads' Guide to Investing'
Replies: 13
Views: 1259

Upon reading 'The Bogleheads' Guide to Investing'

Some things struck me... The book highlights importance of avoiding the herd but also advises investing primarily in index funds. Is this not contradictory? The book constantly highlights the danger of buying high and selling low but index funds running cap weight are compelled to do this? With the ...
by LTCM
Mon Sep 14, 2020 11:06 pm
Forum: Personal Investments
Topic: Family member has one million in one stock , doesn't want to cash out
Replies: 261
Views: 28364

Re: Family member has one million in one stock , doesn't want to cash out

Hi I just want to say I think your dad is gambling. If you are concerned about that perhaps try researching gambling addiction/therapy specifically rather than investments. These bets have accurate pricing and pay dividends but with the tax implications they're probably still negative expected value...
by LTCM
Mon Sep 14, 2020 8:58 pm
Forum: Personal Investments
Topic: Fund Placement for beginners
Replies: 14
Views: 1030

Fund Placement for beginners

Hi, been reading the forum for about a week and I just finished the The Bogleheads' Guide to Investing book. I have some questions! Emergency funds: Yes. Debt: SBA EIDL loan. $25,000 at 3.75% over 30 years. (Taken on the chance it's reduced to 1% within 2 years, if not will be paid off) Tax Filing S...