Search found 21792 matches

by grabiner
Wed Jul 18, 2018 11:15 pm
Forum: Investing - Help with Personal Investments
Topic: The future for long term bond index funds? i.e. VWALX
Replies: 5
Views: 552

Re: The future for long term bond index funds? i.e. VWALX

Morningstar, PIMCO, and Vanguard all caution that pension funds are the main consumers of long-term bond funds/quote] This does not apply as much to muni funds, such as the OP's example. Tax-exempt institutions, such as pensions, would not invest in munis. And even taxable institutions have the pro...
by grabiner
Wed Jul 18, 2018 9:56 pm
Forum: Investing - Theory, News & General
Topic: Market timing benefit? Or just pure luck?
Replies: 10
Views: 1214

Re: Market timing benefit? Or just pure luck?

Recently I'm bored and I played with numbers from Simba's backtesting spreadsheet, just for fun. I observed something which is puzzling to me: 1. If I invested $1 in US stocks in 1970, it will grow to $112.66 by the end of 2017. 2. If I invested $1 in ex-US stocks in 1970, it will grow to $59.39 by...
by grabiner
Wed Jul 18, 2018 9:31 pm
Forum: Investing - Theory, News & General
Topic: Why is leveraging property good but leveraging stocks bad?
Replies: 154
Views: 9836

Re: Why is leveraging property good but leveraging stocks bad?

Margin loans are typically higher than mortgage rates plus you have margin calls. My margin loan rate is currently 3.1%. What's your mortgage rate? I thought mortgages were currently at 4.6% or so? You are comparing short-term to long-term rates. A 30-year mortgage locks in a 4.37% rate (current ra...
by grabiner
Wed Jul 18, 2018 9:02 pm
Forum: Investing - Help with Personal Investments
Topic: Relative tax efficiency of total international funds
Replies: 9
Views: 763

Re: Relative tax efficiency of total international funds

2. I was deciding between ROTH or 401k for my new international purchase and was not sure of the optimal choice here. My current dilemma is a. Since historically international has been outperformed by the US stock it is better to place it in 401k in comparison since it will not grow as much. I know...
by grabiner
Wed Jul 18, 2018 8:49 pm
Forum: Investing - Help with Personal Investments
Topic: Simulating VTSMX w/ TIAA 500 Index and Vanguard Explorer
Replies: 2
Views: 184

Re: Simulating VTSMX w/ TIAA 500 Index and Vanguard Explorer

You might try to match the total market across multiple accounts, using only the 500 index in her 403(b), and holding Extended Market Index in one of your IRAs.
by grabiner
Wed Jul 18, 2018 8:47 pm
Forum: Investing - Help with Personal Investments
Topic: The future for long term bond index funds? i.e. VWALX
Replies: 5
Views: 552

Re: The future for long term bond index funds? i.e. VWALX

Welcome to the forum! What concerns me is the potential for distributions to decline over the coming years at the same time as a prolonged drop in NAV. I don’t want my distributions to fall and then I am in a position where I can’t exit the fund to seek higher yields elsewhere without taking a hit o...
by grabiner
Tue Jul 17, 2018 7:54 pm
Forum: Investing - Theory, News & General
Topic: Is Tax-Managed Small Cap (VTMSX) an underrated fund?
Replies: 35
Views: 3670

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

IJS Bid/Ask/Spread 165.86/ 168.03/ 1.30% VIOV Bid/Ask/Spread 130.15/ 144.94/ 10.75% I assume these were both at market close today. Should look during the day. That said I looked at the trading of VIOV during the day a week or two ago and there were periods of time of over ten minutes with no trade...
by grabiner
Tue Jul 17, 2018 7:42 pm
Forum: Investing - Help with Personal Investments
Topic: Thoughts on using an ETF for TIPS investing
Replies: 22
Views: 1827

Re: Thoughts on using an ETF for TIPS investing

Capital gains distributions from a TIPS fund or individual TIPS you sell are taxed by states with income tax assuming they tax capital gains, which most do as regular income. Check with your own state tax authority. In NJ, for example, capital gains on Treasury bonds and Treasury funds are not taxa...
by grabiner
Tue Jul 17, 2018 7:40 pm
Forum: Personal Finance (Not Investing)
Topic: HSA (or PPO) and a baby
Replies: 16
Views: 1032

Re: HSA (or PPO) and a baby

Are there any scenarios where an HSA doesn't make sense? Every thread I see looks like a no-brainer. I plan to make the switch next year. The NY Times had a really good article about comparing plans last fall. It depends on your own situation, particularly because employees may offer different subs...
by grabiner
Mon Jul 16, 2018 9:03 pm
Forum: Personal Finance (Not Investing)
Topic: HSA (or PPO) and a baby
Replies: 16
Views: 1032

Re: HSA (or PPO) and a baby

We are entertaining the thought of an addition to the family. Two insurance plans to choose from. Keep the existing HSA or switch to a PPO for the birth year. Here's the nitty gritty. HSA: overall deductible for the family = $4,000 out of pocket limit for the family = $10,000 Premium = $1,175/month...
by grabiner
Mon Jul 16, 2018 8:18 pm
Forum: Investing - Theory, News & General
Topic: Balanced Funds and Sequence of Return Risk
Replies: 50
Views: 2857

Re: Balanced Funds and Sequence of Return Risk

If you are in the withdrawal phase, are Balanced Funds (Balanced Index funds, Lifestrategy funds, target date funds, etc.) affected more by Sequence of Return risk than individual funds such as in the 3 fund portfolio? With the 3FP, if stocks are down, you can withdraw from your bond fund (also hel...
by grabiner
Mon Jul 16, 2018 7:46 pm
Forum: Personal Finance (Not Investing)
Topic: Braces: Keeping cost down and insurance questions.
Replies: 18
Views: 1351

Re: Braces: Keeping cost down and insurance questions.

If you do not have a HDHP for your insurance, I would suggest checking to see if your employer offers a healthcare FSA. Even if you do have a HDHP, check whether you have a limited-purpose FSA, usable for only dental and vision; this would allow you to put in $2500 towards braces or other dental co...
by grabiner
Sun Jul 15, 2018 8:16 pm
Forum: Investing - Theory, News & General
Topic: Math help: 401k vs debt payoff formula
Replies: 17
Views: 1425

Re: Math help: 401k vs debt payoff formula

Next, 7% is not realistic for your 401k. However, the 7% return on the 401(k) is the wrong comparison, because it is a risky return. Paying off debt is a risk-free return, and buying munis is a low-risk return. I think it's reasonable to compare after-tax investments to risk-free returns like munis...
by grabiner
Sun Jul 15, 2018 5:12 pm
Forum: Investing - Help with Personal Investments
Topic: Single Investment Fund
Replies: 13
Views: 1679

Re: Single Investment Fund

The Life Strategy funds have a fixed allocation. The Target Date funds have a planned change in allocation over time and you should look at the allocation not the "date" in the name of the fund. Therefore, it is usually better to use the Target Retirement rather than the LifeStrategy funds in a tax...
by grabiner
Sun Jul 15, 2018 9:39 am
Forum: Personal Finance (Not Investing)
Topic: Braces: Keeping cost down and insurance questions.
Replies: 18
Views: 1351

Re: Braces: Keeping cost down and insurance questions.

If you do not have a HDHP for your insurance, I would suggest checking to see if your employer offers a healthcare FSA. Even if you do have a HDHP, check whether you have a limited-purpose FSA, usable for only dental and vision; this would allow you to put in $2500 towards braces or other dental co...
by grabiner
Sun Jul 15, 2018 8:53 am
Forum: Investing - Theory, News & General
Topic: Math help: 401k vs debt payoff formula
Replies: 17
Views: 1425

Re: Math help: 401k vs debt payoff formula

I often run into threads, where I was unable to qualitatively put the yield on debt payoff vs 401k saving. The below math is what I struggle to understand which might help explain my point to new members well. Lets take an example: 1) Debt is at 6%. so the yield in this case is 6% 2) For 401k at 35...
by grabiner
Sun Jul 15, 2018 8:22 am
Forum: Investing - Help with Personal Investments
Topic: Single Investment Fund
Replies: 13
Views: 1679

Re: Single Investment Fund

Since the Tax-Managed Balanced fund (VTMFX) comes closer to my desired asset allocation of 50/50, I still am asking whether or not this could be an appropriate fund for my tax deferred IRA account. I am not a higher-income individual that is referred to in their fund description, but just looking f...
by grabiner
Sat Jul 14, 2018 2:55 pm
Forum: Personal Consumer Issues
Topic: Someone is using my cellphone number
Replies: 21
Views: 2776

Re: Someone is using my cellphone number

I've made up a phone number when filling out forms where the phone number is mandatory many many times over the years and where I don't wish to ever receive a call. Dumb luck that I got yours. I apologize. :sharebeer When I need to do this, I give (410)555-1212. This is not anyone's home number, bu...
by grabiner
Fri Jul 13, 2018 11:00 pm
Forum: Investing - Help with Personal Investments
Topic: 1031 exchange into DST or pay taxes to pay down debt?
Replies: 3
Views: 313

Re: 1031 exchange into DST or pay taxes to pay down debt?

How long are the terms of your loans? If you have, say, a 4.5% mortgage which is not deductible, then paying it down is a risk-free, long-term 4.5% return. The fair investment return on a low-risk, long-term investment is 2.85%, which is the yield on Admiral shares of Vanguard Long-Term Tax-Exempt. ...
by grabiner
Thu Jul 12, 2018 9:10 pm
Forum: Investing - Theory, News & General
Topic: Bonds in rising interest rate environment
Replies: 12
Views: 1045

Re: Bonds in rising interest rate environment

The federal funds rate which is in the news is a very-short-term rate, which is not directly connected to the rates on intermediate-term bonds. In addition, bond rates are set by bond traders, who already know about projected increases in rates. If traders expect interest rates on interrmediate-term...
by grabiner
Thu Jul 12, 2018 8:46 pm
Forum: Investing - Help with Personal Investments
Topic: when is it better to take short term capital gain
Replies: 6
Views: 707

Re: when is it better to take short term capital gain

If you have capital losses exceeding your gains, it doesn't matter whether your gain is short-term or long-term (unless you have both types of gains in the year that your carryovers run out). Therefore, it is worth taking a short-term gain instead of a slightly larger long-term gain.
by grabiner
Thu Jul 12, 2018 8:34 pm
Forum: Investing - Help with Personal Investments
Topic: Time for a taxable account? HSA?
Replies: 4
Views: 505

Re: Time for a taxable account? HSA?

2. HSA earnings are taxed as regular income in CA so I would recommend you use them to help fill your bond allocation (if you have one) instead As to #2 why bonds? Since CA treats the HSA as a normal taxable account would not the normal advice be to use tax efficient equity funds instead? Like the ...
by grabiner
Thu Jul 12, 2018 7:48 pm
Forum: Investing - Help with Personal Investments
Topic: Thoughts on using an ETF for TIPS investing
Replies: 22
Views: 1827

Re: Thoughts on using an ETF for TIPS investing

I have a follow-up question: The main reason ETFs appeal to me rather than just buying TIPS directly is that I had the impression those shares could be bought and sold without regard to the length of terms of the TIPS held in the fund, making the funds a bit more liquid. Was I confused about that? ...
by grabiner
Wed Jul 11, 2018 9:14 pm
Forum: Investing - Theory, News & General
Topic: Larry Swedroe: Look Past Expense Ratios
Replies: 71
Views: 5954

Re: Larry Swedroe: Look Past Expense Ratios

Tax efficiency is also likely to tilt the scales toward the ETFs; so again, IJS and RZV. Comparing IJS and RZV, we see that RZV buys you more HML per dollar. This is partially offset by the fact that RZV has a much lower liquidity which translates into a higher bid/ask spread ( 0.27% for RZV vs 0.0...
by grabiner
Wed Jul 11, 2018 9:05 pm
Forum: Investing - Theory, News & General
Topic: Question About Interaction Between Buy & Sell Limit Orders
Replies: 5
Views: 393

Re: Question About Interaction Between Buy & Sell Limit Orders

What usually happens when orders cross is that the trade happens at the price of the first order placed. This makes it practical to place a limit order to buy above the current ask. If I have placed an order to sell 500 shares at $20 which is the best offer, and you want to buy 1000 shares, you can ...
by grabiner
Wed Jul 11, 2018 8:36 pm
Forum: Investing - Help with Personal Investments
Topic: Thoughts on using an ETF for TIPS investing
Replies: 22
Views: 1827

Re: Thoughts on using an ETF for TIPS investing

Welcome to the forum! There is no free lunch in the market. The higher the yield on your bonds, the more risk of some type you will take, so you have to decide whether taking that risk is worthwhile. Note that I said, "in the market". Outside your IRA, you can buy I-Bonds, which are not traded in th...
by grabiner
Wed Jul 11, 2018 7:42 pm
Forum: Investing - Theory, News & General
Topic: "The Fund is classified as non-diversified"
Replies: 44
Views: 5033

Re: "The Fund is classified as non-diversified"

From the Investment Company Act of 1940: (1) ‘‘Diversified company’’ means a management company which meets the following requirements: At least 75 per centum of the value of its total assets is represented by cash and cash items (including receivables), Government securities, securities of other i...
by grabiner
Tue Jul 10, 2018 6:42 pm
Forum: Investing - Help with Personal Investments
Topic: What % of your equity is int’l?
Replies: 141
Views: 7696

Re: What % of your equity is int’l?

There is a philosophy in Computer Science / Software Engineering that there are in general 3 "natural" numbers that should be used in programming: 0, 1, and infinity. Anything else better have a damn good justification. So with that in mind, I see an analogous answer to this question but with only ...
by grabiner
Tue Jul 10, 2018 6:34 pm
Forum: Investing - Theory, News & General
Topic: Wellesley alternative for taxable acct.?
Replies: 25
Views: 2854

Re: Wellesley alternative for taxable acct.?

Vanguard does have a Tax Managed Balanced Fund, which is at about 50% stock. However, it is very different from Wellesley in the type of stocks it contains (blend instead of value). In spite of the fact that you like Wellesley, I'm not sure you are actually looking for something classified as "valu...
by grabiner
Mon Jul 09, 2018 10:16 pm
Forum: Investing - Theory, News & General
Topic: Wellesley alternative for taxable acct.?
Replies: 25
Views: 2854

Re: Wellesley alternative for taxable acct.?

There are no alternatives that will give you what ever it is you are looking for in wellesley. If you want wellesley then you have to decide if the tax situation is worth it. If not then pick something else. I think OP is asking what is the "something else"? OP could consider something like 40% Van...
by grabiner
Sun Jul 08, 2018 7:57 pm
Forum: Investing - Theory, News & General
Topic: Wellesley alternative for taxable acct.?
Replies: 25
Views: 2854

Re: Wellesley alternative for taxable acct.?

If you want just one fund, LifeStrategy Conservative Growth has a similar allocation, and would be OK in a low tax bracket.

If you want to replicate Wellesley's value bias, use Value Index for the stock portion, and either a corporate or muni fund for the bond portion depending on your tax bracket.
by grabiner
Sun Jul 08, 2018 7:51 pm
Forum: Investing - Help with Personal Investments
Topic: Re-casting mortgage
Replies: 11
Views: 1266

Re: Re-casting mortgage

Hi All: Recently, we purchased a house in a HCOL area. My monthly mortgage is ~6k. While we can afford this, I do want to reduce this to more manageable levels. Our mortgage interest rate is 3.875 on a 30-year fixed rate loan. I have ~$250k additional funds that I did not use for the downpayment. M...
by grabiner
Sun Jul 08, 2018 7:46 pm
Forum: Investing - Help with Personal Investments
Topic: ? on scholarship being able writeoff
Replies: 2
Views: 306

Re: ? on scholarship being able writeoff

Do you have a taxable investment account? If so, you might donate $70K worth of stock with long-term gains, and reinvest your monther's $70K into similar stock. This will get rid of the long-term gain for future tax savings. But check your tax situation before you do this (and check with your tax ad...
by grabiner
Sun Jul 08, 2018 7:29 pm
Forum: Investing - Help with Personal Investments
Topic: In what order should I sell tax lots during rebalancing?
Replies: 6
Views: 789

Re: In what order should I sell tax lots during rebalancing?

If you are selling for a loss, you should sell for the largest loss; it doesn't matter much whether a loss is short-term or long-term. (Short-term losses are better if you have both short-term and long-term gains in the same year, and your gains exceed your losses.) If you are selling for a gain, bu...
by grabiner
Sun Jul 08, 2018 7:21 pm
Forum: Investing - Help with Personal Investments
Topic: What bond funds do you use for taxable accounts?
Replies: 20
Views: 2170

Re: What bond funds do you use for taxable accounts?

What bond funds would you use for a taxable account for a high tax bracket investor? Intermediate-Term Tax-Exempt is the most similar in risk to Total Bond Market, so it should be the default holding. If Vanguard has a fund for your state, you might put half your bonds in that state's long-term fun...
by grabiner
Sun Jul 08, 2018 7:02 pm
Forum: Investing - Help with Personal Investments
Topic: Bond portion of taxable
Replies: 4
Views: 532

Re: Bond portion of taxable

Welcome to the forum! However bonds have always been a bit more confusing for me. If bonds are suppose to be used for capital preservation, why use high yield and emerging market bonds which come at greater default risk? High-yield bonds behave like a mixture of stock and bond; if you hold 20% of yo...
by grabiner
Sun Jul 08, 2018 6:54 am
Forum: Investing - Help with Personal Investments
Topic: Mortgage payoff vs TIAA Traditional
Replies: 7
Views: 616

Re: Mortgage payoff vs TIAA Traditional

See Paying down loans versus investing on the wiki. TIAA Traditional is a fixed-income investment with an effective duration of 4.5 years, as you can withdraw money 1/10 now and 1/10 each year for the next nine years. Paying down your mortgage is a fixed-income investment with an effective duration ...
by grabiner
Sat Jul 07, 2018 10:54 pm
Forum: Investing - Help with Personal Investments
Topic: VGTSX in Traditional IRA-Convert to Roth?
Replies: 12
Views: 775

Re: VGTSX in Traditional IRA-Convert to Roth?

If you can't roll the traditional IRA into an employer plan, it is probably worth converting. If you don't convert it now, you will have to convert it when you need a backdoor Roth, and you'll probably be in a higher tax bracket then. And if you never need a backdoor Roth, you still simplify your p...
by grabiner
Sat Jul 07, 2018 10:35 pm
Forum: Investing - Help with Personal Investments
Topic: Tax-friendlier alternatives to Vanguard Extended Market?
Replies: 22
Views: 1999

Re: Tax-friendlier alternatives to Vanguard Extended Market?

The challenge with holding equities in the 401k is that I'm running out of space for fixed income. I hold equities in Roth, but Roth size is relatively small. I also hold Total International (VXUS), but it has a high dividend yield (and a somewhat high percentage of that is nonqualified), so I've p...
by grabiner
Sat Jul 07, 2018 10:31 pm
Forum: Investing - Help with Personal Investments
Topic: Right decision ?
Replies: 20
Views: 2512

Re: Right decision ?

If you completely depleted your emergency fund in order to pay off a 3.75% loan then I think you made a mistake. On the other hand, if you have sufficient emergency funds remaining and are so risk-averse that any volatility keeps you up at night, and if the entirety of your portfolio will let you m...
by grabiner
Sat Jul 07, 2018 10:17 am
Forum: Personal Finance (Not Investing)
Topic: Is Social Security income included in MAGI for determination of medicare high income adjustment fee?
Replies: 9
Views: 1275

Re: Is Social Security income included in MAGI for determination of medicare high income adjustment fee?

The Wizard wrote:
Sat Jul 07, 2018 8:03 am
Only the taxable part of SS is included in your MAGI for that purpose.
This will vary from 0% to 85% of your total SS benefits depending on the amount of other income...
And it should be 85% for almost everyone affected by IRMAA.
by grabiner
Sat Jul 07, 2018 10:09 am
Forum: Investing - Theory, News & General
Topic: Tradional IRA conversion to ROTH IRA taxable amount?
Replies: 32
Views: 1380

Re: Tradional IRA conversion to ROTH IRA taxable amount?

I am on a pay as you earn student loan plan. My monthly student loan is calculated based on my income. When I first started working my income was low and I was not married at the time so my monthly student loan payment was based off my low income. As my income increased so did the amount I owed eac...
by grabiner
Sat Jul 07, 2018 9:53 am
Forum: Investing - Theory, News & General
Topic: Fund Spy - The Vanguard Group Rules
Replies: 6
Views: 1225

Re: Fund Spy - The Vanguard Group Rules

This one surprised me: Finally, Vanguard could do more to encourage its managers, active as well as passive, to invest alongside fundholders. According to Morningstar data, the percentage of Vanguard’s U.S. assets in which at least one manager has more than $1 million invested stands at 12%. Even c...
by grabiner
Sat Jul 07, 2018 9:04 am
Forum: Investing - Help with Personal Investments
Topic: VGTSX in Traditional IRA-Convert to Roth?
Replies: 12
Views: 775

Re: VGTSX in Traditional IRA-Convert to Roth?

If you can't roll the traditional IRA into an employer plan, it is probably worth converting. If you don't convert it now, you will have to convert it when you need a backdoor Roth, and you'll probably be in a higher tax bracket then. And if you never need a backdoor Roth, you still simplify your po...
by grabiner
Sat Jul 07, 2018 8:58 am
Forum: Investing - Help with Personal Investments
Topic: Right decision ?
Replies: 20
Views: 2512

Re: Right decision ?

If you completely depleted your emergency fund in order to pay off a 3.75% loan then I think you made a mistake. On the other hand, if you have sufficient emergency funds remaining and are so risk-averse that any volatility keeps you up at night, and if the entirety of your portfolio will let you m...
by grabiner
Fri Jul 06, 2018 11:01 am
Forum: Investing - Help with Personal Investments
Topic: Expected windfall that I currently manage?
Replies: 7
Views: 1386

Re: Expected windfall that I currently manage?

As I said, I did not really pick those funds as they are pre-existing. Large amounts of dividends seems like a good thing, I understand they are taxed as income and the same bracket, but what do you mean by non-qualified in this instance or this fund? Qualified dividends, from most stocks, are taxe...
by grabiner
Thu Jul 05, 2018 11:13 pm
Forum: Personal Finance (Not Investing)
Topic: Advice on paying off Mortgage and/or Car?
Replies: 6
Views: 845

Re: Advice on paying off Mortgage and/or Car?

My dear Bogleheads friends, my wife and I would be very interested in your advice. We owe mortgage of $960 per month on $103,300 at 4.0% for the next 17 yrs We owe car payment of $414 per month on $23,326 at 2.59% for the next 5 yrs See Paying down loans versus investing on the wiki. You have enoug...
by grabiner
Thu Jul 05, 2018 11:03 pm
Forum: Personal Finance (Not Investing)
Topic: paying off mortgage while I have high income?
Replies: 11
Views: 1874

Re: paying off mortgage while I have high income?

I'm thinking in the same direction. As my cash position increases we may well make some payments on the principle from time to time, but probably not pay it all down at once. Mortgage balance is $180,000 at 2.75%, and income is in the $275,000 range. At 4.6%, prepaying part of the mortgage can make...
by grabiner
Thu Jul 05, 2018 10:53 pm
Forum: Personal Finance (Not Investing)
Topic: Need advice on Tax Savings
Replies: 7
Views: 674

Re: Need advice on Tax Savings

Welcome to the forum! If you are over the IRA contribution limit, consider a Backdoor Roth IRA . If you have a qualifying high-deductible health plan, you can invest in a Health savings account , and leave the money there to save for medical costs in retirement. If you have children, you can save fo...
by grabiner
Thu Jul 05, 2018 10:47 pm
Forum: Investing - Theory, News & General
Topic: Statistically significant alpha?
Replies: 26
Views: 1700

Re: Statistically significant alpha?

I'm a straight indexer. T R Price Blue Chip Growth (TRBCX) was brought to my attention. I ran it through Portfoliovisualizer and it's linked here https://tinyurl.com/y8q9yq85. My once good college statistics are long gone. With a t-stat of 2.3, would the conclusion be significant? Not given the sam...