Search found 263 matches

by winterescape
Wed Jan 16, 2019 4:41 pm
Forum: Investing - Theory, News & General
Topic: John Bogle has died at age 89
Replies: 856
Views: 81264

Re: John Bogle is dead at 89

A very sad day, he was so generous with his time, involvement, and sharing of his wisdom with the Bogleheads, and through his many books and interviews everyone.

rest in peace, you have done so much for us all Jack...
by winterescape
Fri Jan 11, 2019 8:57 am
Forum: Investing - Theory, News & General
Topic: Best Vanguard funds to include in a Vanguard 401k
Replies: 19
Views: 3815

Re: Best Vanguard funds to include in a Vanguard 401k

dbr wrote: Thu Dec 27, 2018 9:19 am
fennewaldaj wrote: Thu Dec 27, 2018 12:51 am Curious does Vanguard offer brokerage options in its 401ks like Fidelity does? I think the best way to do things is to only include only a few funds in the main plan but give access to a brokerage account for those that want specialized things like long treasuries, small value, international small, high yield bonds, ect.
I agree -- my idea also.
yes they do but then each participant pays for the "brokerage window" option, trying to minimize expenses and have "Traditional Mutual Funds" that cover most all desired options
by winterescape
Wed Dec 26, 2018 1:57 pm
Forum: Investing - Theory, News & General
Topic: Best Vanguard funds to include in a Vanguard 401k
Replies: 19
Views: 3815

Re: Best Vanguard funds to include in a Vanguard 401k

Thanks everyone for the feedback!

WRT fewer options is better, I too believe that, and might have even posted some articles about studies that showed higher 401k participation with fewer choices way back. Practically speaking for our 401k, we have the simple target retirement funds, and we also have the brokerage window option, but that costs participants $50/year, so I was trying to offer all the options we could of Vanguard "traditional" funds without incurring any additional participant cost.
by winterescape
Sun Dec 23, 2018 4:36 pm
Forum: Investing - Theory, News & General
Topic: Best Vanguard funds to include in a Vanguard 401k
Replies: 19
Views: 3815

Best Vanguard funds to include in a Vanguard 401k

We are likely moving our small company 401k plan to Vanguard. They have suggested offering the following funds in the plan. I see everything I want in this list except for one. What do fellow Bogleheads see missing from the proposed list of funds offered? Thanks in advance for any list refinement suggestions and very happy holidays to all... Vanguard Instl Target Retirement 2065 VSXFX Vanguard Instl Target Retirement 2060 VILVX Vanguard Instl Target Retirement 2055 VIVLX Vanguard Instl Target Retirement 2050 VTRLX Vanguard Instl Target Retirement 2045 VITLX Vanguard Instl Target Retirement 2040 VIRSX Vanguard Instl Target Retirement 2035 VITFX Vanguard Instl Target Retirement 2030 VTTWX Vanguard Instl Target Retirement 2025 VRIVX Vanguard I...
by winterescape
Thu Oct 26, 2017 8:01 am
Forum: Personal Consumer Issues
Topic: No true pay as you go [cellphone plan]
Replies: 63
Views: 8777

Re: No true pay as you go [cellphone plan]

We are very happy with Republic Wireless, it is however billed monthly, but it ranks very high in consumer reports for prepaid cell service
https://republicwireless.com/
by winterescape
Mon Aug 14, 2017 8:43 am
Forum: Personal Finance (Not Investing)
Topic: LLC partnership "individual 401k" questions
Replies: 13
Views: 3621

Re: LLC partnership "individual 401k" questions

Spirit Rider,
Thanks much for your clarification, citation, and suggestions, even if it was not the answer I was hoping for...
by winterescape
Fri Aug 11, 2017 2:33 pm
Forum: Personal Finance (Not Investing)
Topic: LLC partnership "individual 401k" questions
Replies: 13
Views: 3621

Re: LLC partnership "individual 401k" questions

Well 2 + years later and I am revisiting the same question. This year Vanguard suggested that I acquire an EIN just for myself, and that each partner do the same, and then we each open a plan that way. As I read the description for what type of EIN I want none appear to exactly describe my employment situation. I would tend to think I could open one as a "sole proprietor" however my income is NOT reported on schedule "C" it flows into my 1040 by way of schedule "E -Income or Loss From Partnerships and S Corporations" As partners, we each pay self employment tax on our K-1 income. I still believe that there must be an easy way to do this and hope someone new happens to read my post here and lead me in the right ...
by winterescape
Tue Jun 28, 2016 12:47 pm
Forum: Personal Consumer Issues
Topic: My first smartphone
Replies: 17
Views: 3061

Re: My first smartphone

Bob,
I recommend Republic wireless, consumer cellular, Wal-Mart total wireless, tracfone or Google project Fi.

Check consumer reports, for carrier ratings.

Android is 85% of the market, Apple IOS is 14%,

We chose Republic wireless and have not been disappointed, we both came from VZW.
by winterescape
Mon Jun 27, 2016 7:34 pm
Forum: Personal Consumer Issues
Topic: Verizon raised unlimited data by $20
Replies: 49
Views: 6239

Re: Verizon raised unlimited data by $20

Republic wireless or project Fi, we personally switched from VZW to Republic wireless 2 years ago, total bill for both phones now $30/ month.

Next month Republic supports 7 new phones, I would wait until July.

Project Fi is very similar but not yet as mature
by winterescape
Wed Dec 02, 2015 3:21 pm
Forum: Personal Finance (Not Investing)
Topic: Vanguard TurboTax - Not Available 2015?
Replies: 327
Views: 64133

2015 TurboTax -- Vanguard discount gone

Sadly I received this in my e-mail today from Vanguard. The days of subsidized or free TurboTax software appear to be over... "Year End Tax information from Vanguard" .... "Update for TurboTax users Vanguard will continue to offer access to TurboTax® products to clients on our website, but we're discontinuing our discounted and complimentary offerings beginning with the 2015 tax season . During a recent review, we decided to align our offerings with Vanguard's core investment products and services. Rest assured that you'll still be able to import Vanguard-generated tax forms into TurboTax through our website if you wish, and we'll continue to assist you with any technical issues that may occur when importing your forms. If yo...
by winterescape
Sun Jan 25, 2015 8:43 am
Forum: Personal Finance (Not Investing)
Topic: Upgrading to TurboTax Premier through Vanguard
Replies: 2
Views: 670

Re: Upgrading to TurboTax Premier through Vanguard

what I did was to log into Vanguard, follow the link to the turbotax site, select the download version, and the "checkout page" showed a zero cost for premier. I downloaded it and deleted my old version. I had not yet installed deluxe so no experience with "upgrading" but to be safe I would recommend uninstalling deluxe and then installing premier.
by winterescape
Thu Jan 15, 2015 3:24 pm
Forum: Personal Finance (Not Investing)
Topic: LLC partnership "individual 401k" questions
Replies: 13
Views: 3621

Re: LLC partnership "individual 401k" questions

ERISA Stone wrote:Your provider probably won't tell you this but assuming you have all HCE's, in your case - all owners own greater than 5%, there's no compliance testing to be done. You would still need to make sure all participants receive contributions according to the plan document, and that no one exceeds relevant limits but that's about it. You might consider asking for a discount related to testing.
Interesting, Thanks...
by winterescape
Thu Jan 15, 2015 3:23 pm
Forum: Personal Finance (Not Investing)
Topic: LLC partnership "individual 401k" questions
Replies: 13
Views: 3621

Re: LLC partnership "individual 401k" questions

You are correct, the terms Solo 401k, Individual 401k, etc... are marketing terms and misnomers for what the plans actually are. There is no such thing as a Solo 401k plan in the U.S. Code or IRS regulations. Even the IRS muddies the water by referring to one-participant 401k plans. They are not separate Code/Regulation plans but rather a set of extensions/exceptions to normal 401k rules. The key being there are no statutory employees, only owner-employees. The primary reason that these are separately marketed plans by the financial institutions from standard 401k plans is as ERISA Stone stated, because of the compliance issues (or lack there of). There are no anti-discrimination testing requirements, etc.. Therefore, the cost to the finan...
by winterescape
Mon Jan 12, 2015 1:41 pm
Forum: Personal Finance (Not Investing)
Topic: LLC partnership "individual 401k" questions
Replies: 13
Views: 3621

Re: LLC partnership "individual 401k" questions

I thought I read on here somewhere that you can have a solo(k) for each partner but I can't find the thread. However, another solution to your situation is to adopt a standard 401(k) plan. Assuming all partners are equal owners, all participants are HCEs so there is no nondiscrimination testing to worry about. You could also set up your profit sharing allocation formula as new comparability (AKA cross-testing) and could choose to give each participant whatever % you choose, up to the contribution limits. Of course, if you have a common plan, you will have to file a 5500, rather than waiting until assets cross $250k for solo(k)'s. Also, a plan document will likely cost more with the new comparability formula, rather than doing the standard ...
by winterescape
Mon Jan 12, 2015 10:19 am
Forum: Personal Finance (Not Investing)
Topic: POLL: For those under $20/month/$100k: What Insurance Comp?
Replies: 11
Views: 2798

Re: POLL: For those under $20/month/$100k: What Insurance Co

AAA insurance ( The auto club) underwritten by ACA insurance company Oakland CA
by winterescape
Mon Jan 12, 2015 9:37 am
Forum: Personal Finance (Not Investing)
Topic: Looking for low cost cell phone plans...
Replies: 47
Views: 9675

Re: Looking for low cost cell phone plans...

I would NOT recommend Republic Wireless at all. They are attached to Sprint, which has one of the poorest network coverage in the US. For example, I could not any data in many areas between Cleveland and Akron (hardly rural areas), a good amount of the Tucson area, and the like. In addition, WiFi calling was consistently poor and customer service is non-existent as your only way to get help is to post a message on a message board and hope you get a response that you can understand. If you desire to LEAVE Republic, they do not cooperate with other carriers and porting a number according to many on their message boards take as many as EIGHT days. After three days of waiting on Republic, I decided to blink and give up my old number when I mov...
by winterescape
Sun Jan 11, 2015 12:24 pm
Forum: Personal Finance (Not Investing)
Topic: TurboTax Premier now free (for some)
Replies: 20
Views: 5556

Re: TurboTax Premier now free (for some)

The full saga of the changes and the price adjustments can be read about here ---> http://www.forbes.com/sites/janetnovack ... ubstitute/
by winterescape
Sun Jan 11, 2015 10:51 am
Forum: Personal Finance (Not Investing)
Topic: LLC partnership "individual 401k" questions
Replies: 13
Views: 3621

Re: LLC partnership "individual 401k" questions

terran wrote:My understanding is that individual 401k's are limited to businesses with only one employee (plus their spouse): http://www.irs.gov/Retirement-Plans/One ... k%29-Plans
this is the type of plan I am looking at https://investor.vanguard.com/what-we-o ... idual-401k
"Sole proprietors or partners who have no common-law employees."
by winterescape
Sun Jan 11, 2015 10:00 am
Forum: Personal Finance (Not Investing)
Topic: LLC partnership "individual 401k" questions
Replies: 13
Views: 3621

LLC partnership "individual 401k" questions

After a concerted search effort I have been unable to locate answers to our individual 401k questions. Any links to sources that definitively address the following 2 questions is appreciated. We have a partnership with 10 partners, organized as an LLC with no employees, only partners and 1099 contractors. My income from the partnership is reported on schedule K-1 (form 1065) line 4 “Guaranteed Payments” As well as Line 14 box “A” Self-employment Earnings (Loss). All income from this partnership is derived from active engineering consulting activity, no passive income. We would like to establish “individual 401k” plans for the partners. Q1) Can we establish more than one individual 401k plan? For example, may I establish one at Vanguard usin...
by winterescape
Sun Jan 11, 2015 9:34 am
Forum: Personal Finance (Not Investing)
Topic: Looking for low cost cell phone plans...
Replies: 47
Views: 9675

Re: Looking for low cost cell phone plans...

Check out republic wireless, we have the $10/ month plan, also please see the December issue of Consumer Reports for independent ratings of Cell service providers. Ting and Republic wireless come out on top.
by winterescape
Sun Apr 07, 2013 11:48 am
Forum: Investing - Theory, News & General
Topic: High ER and Index fund results
Replies: 19
Views: 2346

Re: High ER and Index fund results

A personal conversation I had with Jack about Index VS active funds and the apparent dichotomy within Vanguard (Wellington, STAR, etc…) he indicated that given the same asset allocation (stock, bond) and holdings (value, growth, small cap, large cap, etc) that the ER was the driving factor in predicting performance. The comment I do recall him making was that with an index fund you have no risk of underperforming the market. Now I am leaving out other points which may or may not be significant to your situation, largely taxes. If you are restricting your holdings to a tax sheltered account this point is moot. A Study from Morningstar evaluating the predictive ability of the Morningstar rating system concluded much the same thing. http://www...
by winterescape
Wed Jan 23, 2013 6:01 pm
Forum: Personal Consumer Issues
Topic: How much to spend on a new washer & dryer
Replies: 66
Views: 23313

Re: How much to spend on a new washer & dryer

I could have written your post a few weeks ago! After fixing our 25 Year old washer, I said (Insert wife’s name here) it is time for a new washer! I also do as Taylor suggested and look art CR. Unfortunately, what I discovered is that high rated expensive washers have a bimodal distribution. Folks love them or hate them. Yes, I am lumping all agitator-less washers together being top load or front load. It seems in the race to lower energy consumption / save water / the engineers may have traded off reliability and washing performance. I spent way too much time considering the options and asking my friends / co-workers / family about what they thought about washing machines. And you thought it was hard keeping someone interested in a convers...
by winterescape
Sun Jan 20, 2013 8:01 pm
Forum: Investing - Theory, News & General
Topic: Thank you, Jack Bogle !!
Replies: 17
Views: 4739

Re: Thank you, Jack Bogle !!

About 2 1/2 years ago, at age 24, my finances were in poor shape. Not in shambles, but certainly not in a good position. I was paying down student debt sporadically and putting a meager amount (couple hundred monthly) in a savings account earning 0.1 % APY. I knew I needed a change but had no idea how to save and always wondered how any but the highest earners could ever contemplate retirement. As fortune would have it, I was online looking for an easy recipe for homemade whole wheat bread (I love to bake and cook) when I came across http://www.thesimpledollar.com/ . The bread recipe was OK but the rest of the site's personal finance message was even better. I immediately opened a savings account with ING to establish my Emergency Fund and...
by winterescape
Sat Jan 19, 2013 4:17 pm
Forum: Investing - Theory, News & General
Topic: Inflation; Total Bond Market; GNMAs; and TIPS
Replies: 18
Views: 3873

Re: Inflation; Total Bond Market; GNMAs; and TIPS

Bogleheads: This is an update of a post I made last year : YEAR .. INFLATION .. TBM .... GNMA .... TIPS 1996......3.3%.....3.6%.....5.2% 1997......1.7%.....9.4%.....9.5% 1998......1.6%.....8.6%.....7.1% 1999......2.7%....-0.8%.....0.8% 2000......3.4%....11.4%...11.2% 2001......2.8%.....8.4%.....7.9%......7.7% (TIPS first full year.) 2002......1.6%.....8.3%.....9.7%..... 16.6% (Best annual return.) 2003......2.3%.....4.0%.....2.5%......8.0% 2004......2.7%.....4.2%.....4.1%......8.3% 2005......3.4%.....2.4%.....3.3%......2.6% 2006......3.2%.....4.3%.....4.3%......0.4% 2007......2.8%.....5.9%.....7.0%.....11.6% 2008......0.1%.....5.1%.....7.2%..... -2.8% (Worst annual return.) 2009......2.7%.....5.9%.....5.3%.....10.8% 2010......1.5%.....6.5%...
by winterescape
Wed Jan 16, 2013 8:02 pm
Forum: Investing - Theory, News & General
Topic: When interest rates rise, Total Bond market Index vs Interme
Replies: 25
Views: 6542

Re: Forecasting bond returns. A loser's game.

Vanguard Total Bond Market Admiral (VBTLX) and Vanguard Intermediate Term Treasury Investor Shares (VFITX) currently have almost identical durations: VBTLX = 5.2 years vs. VFITX = 5.3 years. A naive investor might think they would have similar returns. But here's what happened to these two funds during a recent 4 year period when inflation spiked almost 3%: Year-----Inflation---VBTLX------VFITX 2008------0.1%------5.15%------13.32% 2009------2.7%------6.04%------ 1.69% (negative return) 2010------1.5%------6.54%------7.35% 2011------3.0%------7.69%------9.80% It is impossible to forecast future bond fund returns. Best wishes. Taylor Taylor, This is very interesting. Count me as naive as I would have thought they would both have similar per...
by winterescape
Tue Jan 08, 2013 4:30 pm
Forum: Investing - Theory, News & General
Topic: What was your 2012 return?
Replies: 275
Views: 30657

Re: What was your 2012 return?

12.9% with 55/45 stock/bond. Average duration of the majority of our bond funds is 3.2Y, most stock is VTSAX, light on International allocation
by winterescape
Sat Sep 22, 2012 12:55 pm
Forum: Personal Consumer Issues
Topic: Most underrated band of all time [that you listen to]?
Replies: 342
Views: 26305

Re: Most underrated band of all time [that you listen to]?

JDaniels wrote:Some friends and I were discussing this topic.

Our top three were:
1) The Who
2) Rush
3) Boston

All great bands that never got the credit they deserved.

What are yours?
+1 for Boston
by winterescape
Tue Aug 14, 2012 5:38 pm
Forum: Personal Investments
Topic: 21 Year Old With Good Amount of Savings Seeking Advice
Replies: 11
Views: 2762

Re: 21 Year Old With Good Amount of Savings Seeking Advice

livesoft wrote:I'd put $50 into a few books from the reading list and then read them. Maybe you already have though. If so, what did you learn from the books?
Bill,
Welcome. You might consider FDIC insured CD’s, the interest rate is better than the MM funds, but not by a lot. I would agree with livesoft that some books from the reading list would be a good start, you can check them out from the library, the wiki here is great too…
by winterescape
Sun Jun 24, 2012 6:37 pm
Forum: Investing - Theory, News & General
Topic: 401K Stable Value Funds Making Changes
Replies: 15
Views: 2310

Re: 401K Stable Value Funds Making Changes

KAWill70 wrote: My Stable Value fund took a number of months to liquidate and all investors that stayed in the fund received a fairly nice bonus after the final trading day. It appears to me that the market/book ratio was modestly above 1.00 and the fraction above 1.00 was paid out on the last day.
Good point, our Stable fund liquidated at the end of February this year, all in one day and converted to a short term bond fund, the value of the funds increased by 4% that day.
by winterescape
Sun Jun 24, 2012 6:02 pm
Forum: Investing - Theory, News & General
Topic: 401K Stable Value Funds Making Changes
Replies: 15
Views: 2310

Re: 401K Stable Value Funds Making Changes

yes, Stable Value fund went away in our 401k replaced by short term bond fund
by winterescape
Tue May 08, 2012 5:08 pm
Forum: Investing - Theory, News & General
Topic: OK, Maybe I am Wrong on Bonds
Replies: 53
Views: 5806

Re: OK, Maybe I am Wrong on Bonds

TheGreyingDuke wrote:
Leesbro63 wrote:3. If your rich uncle died and left you $1Million dollars today...or $5Million...and you were a Boglehead...would you have the guts to invest 40% of that in intermediate bonds paying 2 to 3 percent?
1) He did
2. I am
3. I did

Only because I don't know any better :happy
1) I I don’t have one, but if a bunch of money landed in my lap..
2) I am too!
3) I would (GNMA and TTL BND)

I had all of our FI in stable value funds, however, it was recently converted from a stable value fund to a short term bond fund. I rolled my FI to Vanguard and put it into Intermediate term bond funds…
by winterescape
Sat May 05, 2012 9:18 am
Forum: Investing - Theory, News & General
Topic: Poll: What is your current largest unrealized loss?
Replies: 22
Views: 2350

Re: Poll: What is your current largest unrealized loss?

FrugalInvestor wrote:I have none. I tax loss harvested once during the big downturn and am hoping to never have the opportunity again.
+1
by winterescape
Sun Apr 29, 2012 11:58 am
Forum: Investing - Theory, News & General
Topic: WSJ: Heard on the Street Deception (?)
Replies: 17
Views: 2002

Re: WSJ: Heard on the Street Deception (?)

555 wrote:Interesting. I had used google myself and got that link, and saw the whole article, but when I click on your link (with identical address), I only get a portion. It see like anyone wanting to read it needs to google the title themselves. I have two tabs open with exactly the same address, one with the full article (googled myself) and one with a portion (using above link).
This is the WSJ paywall at work. They want all the advantages of allowing google to index all the content yet try to prevent you from reading the content without a subscription.

Yes, the method you discovered is a great workaround. Any story that is locked, cut and paste the title in google and click on the first link that comes up.
by winterescape
Sat Apr 28, 2012 7:16 pm
Forum: Investing - Theory, News & General
Topic: vanguard municipal bond funds
Replies: 20
Views: 2770

Re: vanguard municipal bond funds

Bob's not my name wrote:
winterescape wrote:
Bob's not my name wrote:
winterescape wrote:
Bob's not my name wrote:State-specific funds are typically a bad deal. Do the math. They return less after state tax than the national funds. Notable exception is California.
this can help...
https://personal.vanguard.com/us/funds/ ... alentyield
How? This is a federal tax calculator.
No, this is a Taxable-equivalent yield calculator
I know what it is. I must be blind. Where's the state tax button on it? That's what we're talking about here.
Maybe it requires some explanation. If you select a state specific muni fund you then enter your state tax rate, it looks at both Fed and state and gives you a taxable-equivalent yield.
Step 3. Enter a state tax bracket

Are you not comparing a muni fund that is state specific to a national one?
by winterescape
Sat Apr 28, 2012 5:58 pm
Forum: Investing - Theory, News & General
Topic: vanguard municipal bond funds
Replies: 20
Views: 2770

Re: vanguard municipal bond funds

Bob's not my name wrote:
winterescape wrote:
Bob's not my name wrote:State-specific funds are typically a bad deal. Do the math. They return less after state tax than the national funds. Notable exception is California.
this can help...
https://personal.vanguard.com/us/funds/ ... alentyield
How? This is a federal tax calculator.
No, this is a Taxable-equivalent yield calculator
by winterescape
Sat Apr 28, 2012 5:02 pm
Forum: Investing - Theory, News & General
Topic: vanguard municipal bond funds
Replies: 20
Views: 2770

Re: vanguard municipal bond funds

Bob's not my name wrote:State-specific funds are typically a bad deal. Do the math. They return less after state tax than the national funds. Notable exception is California.
this can help...
https://personal.vanguard.com/us/funds/ ... alentyield
by winterescape
Sat Apr 28, 2012 4:05 pm
Forum: Investing - Theory, News & General
Topic: Another GNMA post
Replies: 11
Views: 2132

Re: Another GNMA post

Actually I was agnostic between TBM and GNMA until 2008. Take a look at this five year comparison chart, check out in particular 2008. You may call it past performance, I might call it a “real world test during extreme market conditions” http://quote.morningstar.com/fund/chart.aspx?t=VFIJX&region=USA&culture=en-US&statePara=%7Bsecurities%3A%5B%7Bn%3A%22Vanguard%20GNMA%20Adm%22%2Cids%3A%22FOUSA02SMJ%7C0P000032NF%7CCU%24%24%24%24%24USD%7C1%7C1%7CFO%7C2001-2-12%7C%7C%7Cfalse%7CUSA%7C19%22%7D%2C%7Bn%3A%22Vanguard%20Total%20Bond%20Market%20Index%20Adm%22%2Cids%3A%22FOUSA02TYI%7C0P000033YC%7CCU%24%24%24%24%24USD%7C1%7C1%7CFO%7C2001-11-12%7C%7C%7Cfalse%7CUSA%7C19%22%7D%5D%2CchartType%3A%22GrowthChart%22%2Crange%3A%222007-4-28%7C2012-4-...
by winterescape
Sat Apr 28, 2012 12:01 pm
Forum: Investing - Theory, News & General
Topic: Another GNMA post
Replies: 11
Views: 2132

Re: Another GNMA post

Do you think you've found a case of extra return without extra risk? Nisiprius, Please quantify the “increased risk” of GNMA Credit risk: GNMA =“backed by the full faith and credit of the US government” TBM= Diversification, with 70% of the holdings backed by the US government Interest rate risk: Average duration GNMA = 4.0 years Average duration TBM = 5.1 years convexity of the GNMA bonds, considering the current interest rate? The proportionality higher prepayment risk, again considering the current interest rate? I would hypothesize that when we purchase the TBM we are accepting bond transaction and diversification expenses that are not of value in comparison to the GNMA fund . Or maybe it is all explained by the negative convexity, in ...
by winterescape
Fri Apr 27, 2012 2:48 pm
Forum: Investing - Theory, News & General
Topic: Another GNMA post
Replies: 11
Views: 2132

Re: Another GNMA post

Yes, yet another GNMA “discussion”

1) Prepayment risk: When interest rates fall people refinance to capture a portion of this benefit. However, the cost to refinance limits this activity. Also people move all the time, I believe that 30 year mortgages are held on average for 12 years. All this is interesting but look at the performance of the GNMA fund during the extended falling interest rate environment we have experienced.

2) GNMA bonds are still backed by “the full faith and credit of the US government”. So the question of diversification?
by winterescape
Tue Apr 03, 2012 6:56 pm
Forum: Personal Investments
Topic: Bond Funds
Replies: 3
Views: 890

Re: Bond Funds

You did not state if this was taxable. I would be more inclined to select a single intermediate term fund, Vanguard GNMA or Total bond, and just stick with it.
by winterescape
Sat Mar 31, 2012 7:27 pm
Forum: Investing - Theory, News & General
Topic: 401k employer contributions/employer matching tax treatment
Replies: 5
Views: 1445

Re: 401k employer contributions/employer matching tax treatm

Thanks TFB. Could you direct me to a document that details this? So the expense of a 1.0% 401k match is reduced by the % of the tax bracket of the employer, up to 25% of payroll? 26 USC 404(a)(3) (3) Stock bonus and profit-sharing trusts (A) Limits on deductible contributions (i) In general In the taxable year when paid, if the contributions are paid into a stock bonus or profit-sharing trust, and if such taxable year ends within or with a taxable year of the trust with respect to which the trust is exempt under section 501 (a), in an amount not in excess of the greater of— (I) 25 percent of the compensation otherwise paid or accrued during the taxable year to the beneficiaries under the stock bonus or profit-sharing plan, or (II) the amou...
by winterescape
Sat Mar 31, 2012 1:56 pm
Forum: Investing - Theory, News & General
Topic: 401k employer contributions/employer matching tax treatment
Replies: 5
Views: 1445

Re: 401k employer contributions/employer matching tax treatm

Thanks TFB. Could you direct me to a document that details this? So the expense of a 1.0% 401k match is reduced by the % of the tax bracket of the employer, up to 25% of payroll?

Livesoft, I understand the comparison when employees are evaluating two potential jobs but if you already had a job without a match how might you persuade the employer to make 401k contributions or match a portion of the employee contribution?
by winterescape
Sat Mar 31, 2012 12:07 pm
Forum: Investing - Theory, News & General
Topic: 401k employer contributions/employer matching tax treatment
Replies: 5
Views: 1445

401k employer contributions/employer matching tax treatment

In an effort to encourage my employer to start a 401k matching, or employer contribution to our 401k, I am trying to understand the tax implications to the employer of contributing or funding employee 401k’s.

How is the employer expense of contributing to a 401k treated under the tax code? This is a fairly small employer (200 employees) that provides contract employees.

All information I could find discusses the employee tax advantages and tax deferral advantage of the 401k but I could not locate anything about the treatment of the business expense to the employer.
by winterescape
Sun Mar 04, 2012 5:14 pm
Forum: Investing - Theory, News & General
Topic: 529 Plans - Criteria to Save
Replies: 9
Views: 1186

Re: 529 Plans - Criteria to Save

I generally agree with your logic however some 401K plans are bad (No match, very high expenses) and some 529 plans, like nysaves.org, are run by vanguard and offer very low expenses, great investments, and a tax deduction in NY state for contributions…

Sooo... it is hard to have one size fits all advice
by winterescape
Mon Jan 30, 2012 6:53 pm
Forum: Investing - Theory, News & General
Topic: Inflation; Total Bond Market; GNMAs; and TIPS
Replies: 18
Views: 3873

Re: Uniform type shares

Taylor Larimore wrote:Hi Winterescape:

I used your figures to edit shares in the chart to "investor shares." Thank you.

You may find this Conversation interesting:

GNMA behavior in a sharply rising environment

Best wishes.
Taylor
Taylor,
Thanks for the link to that thread, I had not read it. What I fail to see mentioned anywhere in the thread was what happened in 2008. Just plot gnma VS TBM in google.
http://www.google.com/finance?chdnp=1&c ... MUTF:VFIJX&
by winterescape
Sun Jan 29, 2012 9:14 pm
Forum: Investing - Theory, News & General
Topic: Inflation; Total Bond Market; GNMAs; and TIPS
Replies: 18
Views: 3873

Re: Total Bond Market; GNMAs; TIPS and Inflation

Thanks Taylor for the historic chart. It helps me keep perspective.

The Vanguard site shows
Vanguard GNMA Fund Admiral Shares 7.80%
Vanguard Total Bond Mkt Index Admiral 7.69%
Vanguard GNMA Fund Investor Shares 7.69%
Vanguard Total Bond Mkt Index Inv 7.56%
so are you comparing the Total Bond Mkt Index Admiral to the GNMA Fund Investor Shares ?

I still like the somewhat shorter duration on the GNMA, but who knows…
by winterescape
Sun Jan 22, 2012 5:35 pm
Forum: Investing - Theory, News & General
Topic: How to take advantage of Natural Gas Collapse
Replies: 31
Views: 3141

Re: How to take advantage of Natural Gas Collapse

I updated the crossover point on my home heating system. Instead of running the heatpump down to 10 degrees outside temp it now switches to the gas furnace at 30 degrees.
by winterescape
Mon Jan 16, 2012 3:42 pm
Forum: Personal Investments
Topic: Wash Sale? - Vanguard FTSE to Vanguard Total International
Replies: 29
Views: 2937

Re: Wash Sale? - Vanguard FTSE to Vanguard Total Internation

winterescape wrote:If you search I seem to remember a thread where someone argued that a S&P index fund at one fund family was not equal to a S&P index fund at another family, let me know if this holds up in an audit…
baw703916 wrote:Although this has never been tested in court either, the conventional wisdom is that two index funds that follow the same index are probably substantially identical. For instance, a swap between VFINX and SPY (both follow S&P 500) or VWO and EEM (both follow MSCI EM index).
I agree, I would have a hard time defending that one..
by winterescape
Mon Jan 16, 2012 3:14 pm
Forum: Personal Investments
Topic: Short term treasuries vs. bond index for emergency funds
Replies: 15
Views: 2781

Re: Short term treasuries vs. bond index for emergency funds

Setting up the ladder gives certainty but adds complexity to managing your reserves. If you are O.K. with that, fine. If you want simplicity you could consider a short duration bond fund. The Vanguard short-term bond index currently has a duration of 2.7 years

I even like the Vanguard GNMA, but please be advised that you are moving out in duration...
by winterescape
Mon Jan 16, 2012 2:54 pm
Forum: Personal Investments
Topic: Tax filing and Roth Overcontribution
Replies: 7
Views: 1280

Re: Tax filing and Roth Overcontribution

I did this too a number of years back and I called the IRS. They advised me to attach a letter of explanation to my return which said much what you just posted. Never heard anything more about it. I do remember that I was very pleasantly surprised by the short hold time on the phone with the IRS and I noted the persons ID number and the time and date of the call in my letter.