Search found 21952 matches

by grabiner
Sun Aug 19, 2018 8:11 am
Forum: Personal Finance (Not Investing)
Topic: Credit Score mysteriously dropped
Replies: 9
Views: 776

Re: Credit Score mysteriously dropped

I do not have new credit cards but I as I mentioned I did need to open to trust accounts in the last week or two at a bank where I already have accounts. The bank should not do a hard inquiry (which affects your score) for opening a non-credit account, but if it did, that could cost you a few points.
by grabiner
Sun Aug 19, 2018 7:47 am
Forum: Investing - Help with Personal Investments
Topic: Bond funds in taxable accounts?
Replies: 39
Views: 5771

Re: Bond funds in taxable accounts?

If that 32-35% is straight federal, then a muni is a good idea and the only question is whether you're better with a general muni or a state-specific fund (state-specific ones are usually exempt from state taxes). If it's a combination, then you need to calculate all 3 options (taxable, general mun...
by grabiner
Sat Aug 18, 2018 11:24 am
Forum: Investing - Theory, News & General
Topic: What is the settlement time for T-bills held in a brokerage account?
Replies: 19
Views: 1047

Re: What is the settlement time for T-bills held in a brokerage account?

I've recently sold T-bills on the secondary market at Fidelity and the value of the sale was instantly available to trade. Yes, but I believe that's the case with all securities at Fidelity--one can use funds for trading prior to settlement, but not for withdrawal. And it's not just at Fidelity. It...
by grabiner
Sat Aug 18, 2018 11:21 am
Forum: Personal Finance (Not Investing)
Topic: Cash in Investments to pay off mortgage?
Replies: 4
Views: 437

Re: Cash in Investments to pay off mortgage?

With the baby on the way, it looks like liquidity is valuable to you, and you give up on this liquidity by paying down or off your mortgage. You have to decide whether the extra liquidity is worth the cost: compare the mortgage rate to the rate on low-risk long-term bonds to get an estimate of that ...
by grabiner
Sat Aug 18, 2018 11:15 am
Forum: Investing - Theory, News & General
Topic: Capital Gains on an Index Fund
Replies: 25
Views: 1257

Re: Capital Gains on an Index Fund

OP here. So if I buy Total Stock Market with a taxable account and sell it 3 months later and make 10k, that 10k is not taxed at my Short Term CG rate but instead based on the underlying funds holding duration? And I would expect that would mostly be closer to LTCG as it is an Index fund. Do I have...
by grabiner
Fri Aug 17, 2018 5:35 pm
Forum: Investing - Help with Personal Investments
Topic: Ran out of space in Roth. Where should I put Small Cap Value fund now?
Replies: 6
Views: 602

Re: Ran out of space in Roth. Where should I put Small Cap Value fund now?

I’ve run out of space in my wife and I’s Roths which is where we solely hold Vanguard’s Small cap value fund (VSIAX) to fit our asset allocation. The only place I can hold the fund now is our Vanguard taxable account however I’ve been reading this isn’t recommended because it is tax inefficient. I’...
by grabiner
Fri Aug 17, 2018 5:30 pm
Forum: Investing - Help with Personal Investments
Topic: [How can I simplify rebalancing across multiple accounts?]
Replies: 16
Views: 1503

Re: [How can I simplify rebalancing across multiple accounts?]

I don't use an HSA, and don't know enough about the implications of them to suggest anything as to how one might want to allocate the funds. I would suggest you peruse the HSA wiki article which has a wealth of information on the topic. Any money in the HSA which is not being used for current expen...
by grabiner
Fri Aug 17, 2018 4:57 pm
Forum: Investing - Help with Personal Investments
Topic: TLH options for international small cap value
Replies: 4
Views: 285

Re: TLH options for international small cap value

Two weeks ago I sold shares of VSS (Vanguard FTSE All-World ex-US Small-Cap) at a loss and replaced them with SCZ (ISHARES Tr/MSCI EAFE SMALL CAP). Now I have over $1000 in losses in SCZ, but it's too early to go back into VSS (assuming I don't want to trigger a wash sale--which I don't). Given the...
by grabiner
Thu Aug 16, 2018 7:52 pm
Forum: Personal Finance (Not Investing)
Topic: Experian email alert! "Your score decreased"
Replies: 37
Views: 3211

Re: Experian email alert! "Your score decreased"

Credit Karma does an excellent job of explaining the movements in your score, and what makes up a good rating. There are other free services that do this as well. Credit Karma doesn't actually do a good job of explaining the changes in your credit score. it summarizes each of the factors into a sin...
by grabiner
Wed Aug 15, 2018 10:07 pm
Forum: Personal Finance (Not Investing)
Topic: Experian email alert! "Your score decreased"
Replies: 37
Views: 3211

Re: Experian email alert! "Your score decreased"

I figured it was something like that, but I just thought it was funny because I certainly didn't feel like a better credit risk after I had bought the condo. It is something I keep in mind though. I haven't been paying off the mortgage aggressively because it keeps my credit score up. If I decide t...
by grabiner
Wed Aug 15, 2018 6:11 pm
Forum: Personal Finance (Not Investing)
Topic: Experian email alert! "Your score decreased"
Replies: 37
Views: 3211

Re: Experian email alert! "Your score decreased"

Credit Karma does an excellent job of explaining the movements in your score, and what makes up a good rating. There are other free services that do this as well. Credit Karma doesn't actually do a good job of explaining the changes in your credit score. it summarizes each of the factors into a sin...
by grabiner
Wed Aug 15, 2018 8:16 am
Forum: Investing - Help with Personal Investments
Topic: Roth IRA max salary
Replies: 14
Views: 2229

Re: Roth IRA max salary

I have money in a taxed Vanguard account I invested last year. My goal is to roll this money into the 2 Roths we have each year. This is a confusing statement. You can't roll a taxable account into an IRA. If you mean that you plan to sell the assets to fund the Roths, that's probably not a great i...
by grabiner
Tue Aug 14, 2018 9:59 pm
Forum: Personal Consumer Issues
Topic: Timing of car purchase during a model year
Replies: 17
Views: 1558

Re: Timing of car purchase during a model year

We usually buy new cars at the end the model year, since dealers seem more interested in offering good prices at that time. However, we also keep our cars for eight to ten years, compared to four years for the OP, so for us year to year depreciation is a much lower consideration. And that is an imp...
by grabiner
Tue Aug 14, 2018 9:56 pm
Forum: Personal Consumer Issues
Topic: Is the price of a new car a good proxy for the expense of owning it?
Replies: 38
Views: 2244

Re: Is the price of a new car a good proxy for the expense of owning it?

One important exception: you may pay extra now in order to reduce future costs. For example, I own a Toyota Prius. A comparably-equipped non-hybrid car would cost less to purchase, but would use almost twice as much gas (I get 57 MPG, and got 32 in my previous Honda Civic). I expect to break even in...
by grabiner
Tue Aug 14, 2018 9:37 pm
Forum: Personal Finance (Not Investing)
Topic: Experian email alert! "Your score decreased"
Replies: 37
Views: 3211

Re: Experian email alert! "Your score decreased"

The funniest one for me was when I bought my condo. Month 1 when I bought it, my score dropped 30 points. Month 2 after the first payment, my score went up 50 points. I had half the liquid assets and a large new mortgage payment I had to make every month, but I was somehow a better credit risk. :?:...
by grabiner
Tue Aug 14, 2018 9:14 pm
Forum: Investing - Theory, News & General
Topic: Should I contribute to 401k this year if retirement income will be higher?
Replies: 4
Views: 592

Re: Should I contribute to 401k this year if retirement income will be higher?

Since you want to retire in a relatively high tax bracket (24% under current laws, 28% if taxes revert as scheduled) I don't see that tax deferral this year will be very helpful to you in the future. I'd use some Roth, maybe all Roth this year if you can. Be sure to get your match though. It's stil...
by grabiner
Tue Aug 14, 2018 9:08 pm
Forum: Investing - Theory, News & General
Topic: Asset location strategy between tax-advantaged account types
Replies: 4
Views: 331

Re: Asset location strategy between tax-advantaged account types

So I believe this can be generalized as: Place asset classes with higher expected growth (e.g. stocks) in Roth IRA / 401k, and asset classes with lower expected growth (e.g. bonds) in Traditional IRA / 401k. Am I missing anything? See Tax-adjusted asset allocation on the wiki. If you place an equal...
by grabiner
Tue Aug 14, 2018 9:01 pm
Forum: Investing - Help with Personal Investments
Topic: Best placement for Small Cap Value? Taxable, Roth or 403b7?
Replies: 21
Views: 1344

Re: Best placement for Small Cap Value? Taxable, Roth or 403b7?

The numbers were somewhat different in 2016. Maybe you should look. And while I don't know that Triceratop did any charts for years before that, the discussion was always that the broader funds were usually more tax-efficient than the narrower funds. And I remember a time awhile back that SCV was n...
by grabiner
Tue Aug 14, 2018 8:53 pm
Forum: Investing - Help with Personal Investments
Topic: Roth IRA max salary
Replies: 14
Views: 2229

Re: Roth IRA max salary

I have money in a taxed Vanguard account I invested last year. My goal is to roll this money into the 2 Roths we have each year. This is a confusing statement. You can't roll a taxable account into an IRA. If you mean that you plan to sell the assets to fund the Roths, that's probably not a great i...
by grabiner
Tue Aug 14, 2018 8:49 pm
Forum: Investing - Help with Personal Investments
Topic: Schwab IRA - RMD's taken to Taxable Side
Replies: 6
Views: 387

Re: Schwab IRA - Bond Funds

So if there is a gain or loss in principal in the bond fund when sold in IRA - and I buy same fund over in the taxable side, there is no IRS problem with that? Correct. Only selling something in a taxable account can cause a wash sale. The reason is that the wash sale rule prevents you from deducti...
by grabiner
Tue Aug 14, 2018 8:47 pm
Forum: Investing - Help with Personal Investments
Topic: $1M in cash - invest or pay down mortgage
Replies: 21
Views: 3658

Re: $1M in cash - invest or pay down mortgage

Wiki article link: Paying down loans versus investing Paying down that mortgage would be a risk-free 3.5% return. I don't know how long until the ARM resets, but if it is seven years, that would be equivalent to buying a seven-year bond. 3.5% is more than seven-year municipal-bonds earn, but 35% red...
by grabiner
Tue Aug 14, 2018 8:38 pm
Forum: Investing - Help with Personal Investments
Topic: VISA stock
Replies: 7
Views: 739

Re: VISA stock

Welcome to the forum! I bought visa stock a long time before I discovered Vangugard/bogleheads. Needless to say, they're performed nicely. I hold them in a Vanguard Roth IRA. Now that I have more or less adopted the boglehead philosophy, what is the recommended action? Sell and buy a Vanguard fund? ...
by grabiner
Sun Aug 12, 2018 1:06 pm
Forum: Investing - Theory, News & General
Topic: Is Tax-Managed Small Cap (VTMSX) an underrated fund?
Replies: 57
Views: 7187

Re: Is Tax-Managed Small Cap (VTMSX) an underrated fund?

According to the bogleheads wiki it says that the costs in the top bracket are: 0.38% for Vanguard Tax-Managed Small-Cap VTMSX 0.47% for the Vanguard Total Market Index VTSAX Not sure how this would factor in a taxable account but on Morningstar it says the turnover is 3% with the Total Market Inde...
by grabiner
Sun Aug 12, 2018 12:56 pm
Forum: Personal Finance (Not Investing)
Topic: HSA (or PPO) and a baby
Replies: 18
Views: 1398

Re: HSA (or PPO) and a baby

Okay so I'm going to revive this thread for hopefully the last time. I called my insurance company yesterday and they informed me that I have a $4000 deductible per person ...then 80/20 coverage (insurance/copay) up to $6550. Then it covers 100% on that person. 10k max out of pocket for the family....
by grabiner
Sun Aug 12, 2018 12:49 pm
Forum: Investing - Theory, News & General
Topic: Rate hikes vs - Muni, Corp, Total Bond funds
Replies: 17
Views: 2332

Re: Rate hikes vs - Muni, Corp, Total Bond funds

Starting dates make a big difference. VWIUX was at 14.61 just a couple months before the data in these charts, which means there was a 5% drop over the course of a couple of months just before this data, and these charts would look a lot different if this was included. I know, since this is when I ...
by grabiner
Fri Aug 10, 2018 9:04 pm
Forum: Personal Finance (Not Investing)
Topic: HSAs - Rollovers
Replies: 7
Views: 429

Re: HSAs - Rollovers

The two strategies are essentially equivalent in most situations. You can contribute $3450 to your IRA and then roll $3450 from your IRA to your HSA, or contribute $3450 directly to your IRA. Both have the same effect. Contributing directly to the HSA is better if you can still contribute to your IR...
by grabiner
Fri Aug 10, 2018 8:38 pm
Forum: Investing - Help with Personal Investments
Topic: Trying to understand the logistics of a 403b in relation to bonds and selling
Replies: 19
Views: 656

Re: Trying to understand the logistics of a 403b in relation to bonds and selling

#1: If I were, to say, increase the amount of money I'm contributing in my 403b ($600 instead of $450 per month) and put this excess money into VBTLX, I figure I'll eventually catch up on my bond allocation to the point where I can sell the bonds in my Roth and achieve the goal of not having bonds ...
by grabiner
Fri Aug 10, 2018 8:28 am
Forum: Personal Finance (Not Investing)
Topic: Use cash to pay off low interest student loans and car or downpayment for house?
Replies: 23
Views: 1021

Re: Use cash to pay off low interest student loans and car or downpayment for house?

Since you can max out your 401(k) every year, I would prefer to do that in preference to paying down low-interest loans. The benefit from getting more money into the 401(k) now lasts as long as you have the money in the 401(k). I am assuming that the student loan is fixed-rate. If it is variable-rat...
by grabiner
Thu Aug 09, 2018 7:57 pm
Forum: Personal Finance (Not Investing)
Topic: Anyone regret paying off mortgage early?
Replies: 504
Views: 109143

Re: Anyone regret paying off mortgage early?

I agree that a sinking fund for a mortgage makes a lot of sense. CD rates and short-term bond yields are likely to be lower than your mortgage rate (but not necessarily), but that may be a small price to pay in return for maintaining liquidity. For a long-term mortgage, you can use a longer-term fu...
by grabiner
Thu Aug 09, 2018 7:52 pm
Forum: Investing - Help with Personal Investments
Topic: SEC yield vs (Schwab) 7-day yield vs Bank Interest
Replies: 8
Views: 987

Re: SEC yield vs (Schwab) 7-day yield vs Bank Interest

Sorry for the delay in this. So, I think I'm now more confused. So, you're saying the SEC yield is the dividend PLUS any gain in the value of the fund? Put more simply, how do I simply determine the dividend yield without having to manually calculate it manually by looking at actual monthly dividen...
by grabiner
Thu Aug 09, 2018 7:47 pm
Forum: Investing - Help with Personal Investments
Topic: Rebalancing When Average Are Under or Over Market Prices(?)
Replies: 8
Views: 663

Re: Rebalancing When Average Are Under or Over Market Prices(?)

Hi! Thank you for your responses! My strategy and thoughts are as follows: Let's say I buy 100 shares à 100€. Now, the market price of the shares drops to 90€ and I buy 100 more shares. Thus, my average price would have dropped from 100€ per share in my PF to 95€. Hence, I - in a way - increase the...
by grabiner
Thu Aug 09, 2018 7:42 pm
Forum: Investing - Theory, News & General
Topic: VBIAX- balanced fund 60/40.
Replies: 15
Views: 1732

Re: VBIAX- balanced fund 60/40.

However, the point about why to use separate funds is a bit more complicated. Grabiner gives a good basic example for flexibility, but if you are staying in Texas, here's a more pertinent example. Suppose you have $100k in the fund and stocks go up by 10%. Your fund, let's say 50/50 stock to bond, ...
by grabiner
Wed Aug 08, 2018 10:49 pm
Forum: Personal Finance (Not Investing)
Topic: HSA to non HSA and back?
Replies: 1
Views: 267

Re: HSA to non HSA and back?

Your total HSA contributions for 2018 will have a maximum prorated for the number of months you had HDHP coverage. Since you have already contributed more than this, contact your HSA provider about how to do a "return of excess contributions"; you will get the extra back but will owe tax on any inte...
by grabiner
Wed Aug 08, 2018 10:38 pm
Forum: Personal Finance (Not Investing)
Topic: Mortgage question
Replies: 20
Views: 1764

Re: Mortgage question

I have a 30 year fixed mortgage. Is it better to over the pay the mortgage every month by say $1,000 or save up larger sums of money to put in at one time? Thanks! This is not a question which has a single answer; see Paying down loans versus investing on the wiki. If you are sure that paying down ...
by grabiner
Wed Aug 08, 2018 10:22 pm
Forum: Personal Finance (Not Investing)
Topic: Should I apply for United Explorer MileagePlus Card? Is it worth it in my situation?
Replies: 45
Views: 2033

Re: Should I apply for United Explorer MileagePlus Card? Is it worth it in my situation?

You do get slightly expanded access to award seats with the card. That can be very useful for international business class. I keep this card primarily for that reason, and because with Chase's new policies, it would be hard for me to get the card again and churn the bonus. Even a marginally better ...
by grabiner
Wed Aug 08, 2018 10:07 pm
Forum: Investing - Theory, News & General
Topic: Vanguard Long-Term Treasury (VUSUX) beta = 3.20?
Replies: 15
Views: 1254

Re: Vanguard Long-Term Treasury (VUSUX) beta = 3.20?

In any case, this is what rolling 5-year correlations between two completely random variables that have a true, known underlying zero correlation look like. https://imgur.com/REDCPrA.png How convinced are you that the blue line on PIMCO's chart is showing something truly different in kind? https://...
by grabiner
Wed Aug 08, 2018 9:56 pm
Forum: Investing - Theory, News & General
Topic: VBIAX- balanced fund 60/40.
Replies: 15
Views: 1732

Re: VBIAX- balanced fund 60/40.

While not terrible, you'd probably be better of with the tax managed balanced index fund from Vanguard, VTMFX. That depends on your tax bracket. If you want to hold only one fund in taxable, Tax-Managed Balanced might be better in a 24% or higher bracket. (In addition, the allocations are not the s...
by grabiner
Wed Aug 08, 2018 9:40 pm
Forum: Investing - Help with Personal Investments
Topic: Options to invest $80,000 now, but might need to access some of it periodically when I retire in 3-5 years
Replies: 7
Views: 994

Re: Options to invest $80,000 now, but might need to access some of it periodically when I retire in 3-5 years

Will you be over or under 55 when you retire? If you are at least 55, you can withdraw from your 403(b) penalty-free (and if at least 59-1/2, you can withdraw from your IRA penalty-free). If you are less than 55 when you retire, you need your investments to last until age 59-1/2. You can withdraw co...
by grabiner
Wed Aug 08, 2018 9:37 pm
Forum: Investing - Help with Personal Investments
Topic: Allocations Stable for 18 months?
Replies: 8
Views: 529

Re: Allocations Stable for 18 months?

Allocations don't change as much as the market moves. Say that you have $600K in stock and $400K in bonds, for a 60/40 allocation. If the bond market doesn't move, then to get to 70/30, you would need the stock to rise to $933K, a 55% gain. To get to 50/50, you would need the stock to fall to $400K,...
by grabiner
Wed Aug 08, 2018 9:34 pm
Forum: Investing - Help with Personal Investments
Topic: Rebalancing When Average Are Under or Over Market Prices(?)
Replies: 8
Views: 663

Re: Rebalancing When Average Are Under or Over Market Prices(?)

What you are doing doesn't look like rebalancing; you seem to have changed your allocation. If your target was to hold 80% stock, you would not have 65% stock unless the stock market had lost more than half its value. So, why are you increasing your stock allocation now? It may be the right move, bu...
by grabiner
Wed Aug 08, 2018 9:23 pm
Forum: Investing - Help with Personal Investments
Topic: Would you pay this mortgage off?
Replies: 51
Views: 4143

Re: Would you pay this mortgage off?

current residence debt: 224K at 4% ( taxes 11k) Your mortgage interest is $8960. With $10K state and local taxes, you aren't getting any tax benefit from deductible interest now unless you have $5040 in other deductions (likely charity), and as you pay down the mortgage, you would need even more in...
by grabiner
Tue Aug 07, 2018 11:47 pm
Forum: Investing - Help with Personal Investments
Topic: How safe is VTIP?
Replies: 31
Views: 2142

Re: How safe is VTIP?

If anyone can help me, I am still very confused in one thing. In my limited experience, the interest rate from any high-yield saving account (HYSA) is almost always less than the inflation. Vanguard Short-Term Inflation-Protected securities ETF (VTIP) yields the inflation plus the real SEC yield (p...
by grabiner
Tue Aug 07, 2018 7:44 pm
Forum: Personal Finance (Not Investing)
Topic: Anyone regret paying off mortgage early?
Replies: 504
Views: 109143

Re: Anyone regret paying off mortgage early?

One scenario I do see quite often is the person aggressively paying off their mortgage even though they have no intention of staying in their current house. (There is a current thread on this topic). I guess it doesn't occur to them that they may have difficulty tapping their home equity for a down...
by grabiner
Tue Aug 07, 2018 7:31 pm
Forum: Investing - Help with Personal Investments
Topic: How safe is VTIP?
Replies: 31
Views: 2142

Re: How safe is VTIP?

VTIP would be a good place to put a down payment for a house that you plan to buy in a few years. It will earn a fixed yield above inflation, so if unexpected inflation causes housing prices to rise, VTIP will rise along with it. And the underlying bonds, TIPS, are backed by the US Government. Schw...
by grabiner
Mon Aug 06, 2018 10:17 pm
Forum: Investing - Help with Personal Investments
Topic: Trade 3.5% guaranteed for something else?
Replies: 14
Views: 1754

Re: Trade 3.5% guaranteed for something else?

Thank you everyone for your questions! You're really helping me think about this the right way. Please see below for the answers to everyone's questions: The account is basically a contract (I think) with a AAA-rated insurance company. I just checked my state's website and it looks like the full am...
by grabiner
Mon Aug 06, 2018 9:09 pm
Forum: Investing - Help with Personal Investments
Topic: fidelity zero index - no accum gains - advantage?
Replies: 26
Views: 2527

Re: fidelity zero index - no accum gains - advantage?

fact is that the fidelity fund doesnt really have unrealized gain, and the vanguard one does have a large unrealized gain. the fidelity one also is cheaper. Hard to see how the vanguard one is preferred. Vanguard has a large unrealized gain, but with the ETF class, it should never be realized. Fide...
by grabiner
Mon Aug 06, 2018 8:46 pm
Forum: Investing - Theory, News & General
Topic: "Don't Obsess About Expense Ratios"
Replies: 240
Views: 20002

Re: "Don't Obsess About Expense Ratios"

I think it's the ownership style of Vanguard that keeps it more attractive than other companies. We technically own Vanguard because of the way it's structured. Fidelity isn't held to the same standard or has a similar structure. If we technically own Vanguard, how come we can't get Vanguard to do ...
by grabiner
Mon Aug 06, 2018 8:44 pm
Forum: Investing - Theory, News & General
Topic: "Age in Bonds" fails almost everyone
Replies: 217
Views: 12811

Re: "Age in Bonds" fails almost everyone

There have been several polls on the Bogleheads forum; age-15 in bonds is about average among Bogleheads. Stock allocations tend to be higher than this level for retired investors. One reason is that many retired investors are investing for their heirs, not themselves; an 80-year-old retiree who liv...
by grabiner
Mon Aug 06, 2018 8:12 pm
Forum: Investing - Help with Personal Investments
Topic: fidelity zero index - no accum gains - advantage?
Replies: 26
Views: 2527

Re: fidelity zero index - no accum gains - advantage?

I don't know if you've ever looked at triceratop's tax-efficiency spreadsheet, but it may be useful in illustrating this point. When I plug in my numbers, the ER for VTSAX is a fraction of the total holding cost for me (4 out of 36 bps) and for FSTVX (3.5 out of 46 bps). Eliminating the ER on the l...
by grabiner
Mon Aug 06, 2018 8:07 pm
Forum: Investing - Help with Personal Investments
Topic: Help with new portfolio; balancing retirement and student loans
Replies: 4
Views: 293

Re: Help with new portfolio; balancing retirement and student loans

I would prioritize paying off the student loan debt above all else. Including just making the minimum payments needed to get the 0% credit card paid off before the rate changes. The only savings that I’d do until the student loan gone is to get the match on your 401(k). And the HSA, which gets a ma...