Search found 21534 matches

by grabiner
Tue May 22, 2018 11:20 pm
Forum: Investing - Help with Personal Investments
Topic: Intermediate Term Treasury vs Tax Exempt Fund
Replies: 23
Views: 1635

Re: Intermediate Term Treasury vs Tax Exempt Fund

Actually, I wouldn't use either of these for an investment of less than $50K. Rather, I would prefer Intermediate-Term Treasury Index Admiral Shares, with 0.07% expenses for a $10K minimum, or for the ETF class VGIT. This yields 2.81%, which is 2.14% after 24% federal tax. I think you mean Vanguard...
by grabiner
Tue May 22, 2018 8:44 pm
Forum: Personal Finance (Not Investing)
Topic: Are high dividend stocks advantageous for the 15% tax rate?
Replies: 40
Views: 2833

Re: Are high dividend stocks advantageous for the 15% tax rate?

While I know the consensus here is that favoring higher-dividend stocks does not make sense for an equity portfolio, does it make sense for a taxable portfolio used for income in retirement because of the 15% tax rate on dividends? Not really, because you can do the same with capital gains, and kee...
by grabiner
Tue May 22, 2018 8:33 pm
Forum: Investing - Help with Personal Investments
Topic: Intermediate Term Treasury vs Tax Exempt Fund
Replies: 23
Views: 1635

Re: Intermediate Term Treasury vs Tax Exempt Fund

Doing the same for the California vs Treasury Funds comparison: Vanguard California Intermediate-Term Tax-Exempt Fund Investor Shares (VCAIX) - SEC yield 2.27% - after tax - 2.27% Vanguard Intermediate-Term Treasury Fund Investor Shares (VFITX) - SEC yield 2.68% - after tax - 2.03% And these two ha...
by grabiner
Mon May 21, 2018 11:27 pm
Forum: Investing - Theory, News & General
Topic: Larry Swedroe: Real Estate Isn’t Special
Replies: 49
Views: 6936

Re: Larry Swedroe: Real Estate Isn’t Special

It always amazes me that people on this forum, dedicated to low-fee, DIY investing can put REITs in the same category as brick and mortar real estate. A REIT has layer after layer of management expenses, with a multitude of ways to obfuscate and hide just how much the investor pays for this "manage...
by grabiner
Sun May 20, 2018 5:28 pm
Forum: Personal Finance (Not Investing)
Topic: Dave Ramsey it or keep low interest debt
Replies: 129
Views: 7590

Re: Dave Ramsey it or keep low interest debt

The main idea I was trying to convey was that federally insured low returning low risk instruments beat (or nearly beat as you point out) the low return of paying back a 1.9% car loan. What about something that might yield an annualized return of 5%? What is returning 5%? One constantly reads on th...
by grabiner
Sun May 20, 2018 5:20 pm
Forum: Investing - Help with Personal Investments
Topic: Is Vanguard's Tax Managed Balanced Fund (VTMFX) truly passive/Index??
Replies: 16
Views: 1170

Re: Is Vanguard's Tax Managed Balanced Fund (VTMFX) truly passive/Index??

The VG Tax Managed Balanced Fund, according to a comparison done with the Morningstar tools is barely more tax efficient than the Vanguard Balanced Index Admiral Fund over at least the last 15 yrs. In general, it is better to get tax information from the fund provider, as Morningstar often has issu...
by grabiner
Sun May 20, 2018 11:10 am
Forum: Investing - Help with Personal Investments
Topic: Do I pay towards my mortgage or invest?
Replies: 29
Views: 2166

Re: Do I pay towards my mortgage or invest?

I have a mortgage of $480k @ 3.875% (30 yr fixed). See Paying down loans versus investing on the wiki. At these rates, the marginal payment is probably still tax-deductible; you are paying over $14K in interest, so if you have $10K in state and local taxes and no other deductions, any additional pa...
by grabiner
Sun May 20, 2018 11:01 am
Forum: Investing - Theory, News & General
Topic: Larry Swedroe: Real Estate Isn’t Special
Replies: 49
Views: 6936

Re: Larry Swedroe: Real Estate Isn’t Special

http://www.etf.com/sections/index-investor-corner/swedroe-real-estate-isnt-special?nopaging=1 But studies have shown that the returns of REITs are explained underlying factors. Dave The data in Larry's post do not support this conclusion. From the Mladina paper: The r-squared value was 0.67. . From...
by grabiner
Sun May 20, 2018 10:50 am
Forum: Investing - Theory, News & General
Topic: Challenge: guess the effect of rebalancing (by interval or bands) in 2008-2009
Replies: 35
Views: 3557

Re: Challenge: guess the effect of rebalancing (by interval or bands) in 2008-2009

The reason that no rebalancing led to the lowest standard deviation is that it had the lowest average stock allocation. The portfolio with no rebalancing had 40% stock in March 2009; any portfolio which rebalanced along the way had more than 40% stock, and thus had larger gains during the 2009 recov...
by grabiner
Sun May 20, 2018 10:27 am
Forum: Investing - Help with Personal Investments
Topic: Is Vanguard's Tax Managed Balanced Fund (VTMFX) truly passive/Index??
Replies: 16
Views: 1170

Re: Is Vanguard's Tax Managed Balanced Fund (VTMFX) truly passive/Index??

The stock portion of the fund is characterized as passive but not strictly index. It follows the Russell 1000, but may deviate from the index for tax reasons (selecting stocks with lower dividend yields, waiting until after a dividend to buy a stock, holding a stock to avoid selling it for a capital...
by grabiner
Sun May 20, 2018 10:17 am
Forum: Investing - Help with Personal Investments
Topic: Do I pay towards my mortgage or invest?
Replies: 29
Views: 2166

Re: Do I pay towards my mortgage or invest?

I have a mortgage of $480k @ 3.875% (30 yr fixed). See Paying down loans versus investing on the wiki. At these rates, the marginal payment is probably still tax-deductible; you are paying over $14K in interest, so if you have $10K in state and local taxes and no other deductions, any additional pa...
by grabiner
Sun May 20, 2018 9:59 am
Forum: Investing - Help with Personal Investments
Topic: Should Tax-Free Munis Be Part of Roth IRA?
Replies: 13
Views: 472

Re: Should Tax-Free Munis Be Part of Roth IRA?

Tax bracket is 22%. I have the bonds to "diversify" the portfolio. In the 22% bracket, I wouldn't recommend munis, unless you are in a high-tax state and have a muni fund for your state. You may want some bonds for diversification, but they should probably be taxable bonds, something like Total Bon...
by grabiner
Sat May 19, 2018 10:44 pm
Forum: Personal Finance (Not Investing)
Topic: Dave Ramsey it or keep low interest debt
Replies: 129
Views: 7590

Re: Dave Ramsey it or keep low interest debt

Look at it this way... if you had both car loans paid for ($58k), would you go BORROW $58k just to invest it? If I could get a 0% interest loan, I'd borrow every penny I could and invest it. What happens if/when you couldn't pay the loan back? On an annual income of $255k, 6 months of emergency fun...
by grabiner
Sat May 19, 2018 4:34 pm
Forum: Personal Finance (Not Investing)
Topic: Mortgage decision killing me
Replies: 52
Views: 6479

Re: Mortgage decision killing me

I strongly encourage you to consider the 7-1 ARM for two reasons. 1. In seven years you should be able to prepay in excess of 50% of the balance so if there is a rate increase it is on a lower amount and you benefit from a rate cap. 2. You also have substantial others financial assets to pay off th...
by grabiner
Sat May 19, 2018 4:27 pm
Forum: Personal Finance (Not Investing)
Topic: Entry-level employment affected by having no credit score?
Replies: 2
Views: 326

Re: Entry-level employment affected by having no credit score?

If the employer (or anyone else) takes an adverse action based on a credit report, the employer is required by law to notify him of the adverse action. He would know if his lack of credit is causing job problems.
by grabiner
Sat May 19, 2018 4:22 pm
Forum: Personal Finance (Not Investing)
Topic: Vanguard Year End Tax Forms
Replies: 7
Views: 643

Re: Vanguard Year End Tax Forms

You might need the 5498 for a Roth IRA, as proof of your contributions if you withdraw before 59-1/2.
by grabiner
Sat May 19, 2018 4:20 pm
Forum: Personal Finance (Not Investing)
Topic: Dave Ramsey it or keep low interest debt
Replies: 129
Views: 7590

Re: Dave Ramsey it or keep low interest debt

Hard to believe any Boglehead would keep any of nterest payments when they don’t have too. We talk about low index ers then say it’s ok to pay interest. You'll find a lot of Bogleheads who keep interest payments they don't have to, because they have a better use of the money. I could have paid cash...
by grabiner
Tue May 15, 2018 9:31 pm
Forum: Personal Finance (Not Investing)
Topic: Do you know your marginal tax rate?
Replies: 27
Views: 2860

Re: Do you know your marginal tax rate?

There's also the 7.65% FICA avoided for HSA contributions, which you could view as bumping the top rate to 48.95% if you mentally stack the HSA contributions on top of the retirement contributions. In your low tax bracket, the FICA avoided is likely to be a net loss; $1 of saved FICA costs you more...
by grabiner
Mon May 14, 2018 8:06 pm
Forum: Personal Finance (Not Investing)
Topic: Do you know your marginal tax rate?
Replies: 27
Views: 2860

Re: Do you know your marginal tax rate?

Quicken will give you that number. Or a simple calculation is taxes divided by total income (example $40K of taxes divided by $400K total income equals 10% which is the marginal rate for those numbers). So a single dollar is worth $.90 since 10% goes to taxes. A bit simplistic and changing variable...
by grabiner
Sun May 13, 2018 7:38 pm
Forum: Personal Finance (Not Investing)
Topic: Pay Off Mortgage or Invest
Replies: 7
Views: 1044

Re: Pay Off Mortgage or Invest

See Paying down loans versus investing on the wiki. Paying down the mortgage would be equivalent to buying a long-term bond portfolio with a 3.75% yield. The portfolio would be taxable, since you are deducting the interest on the rental. This isn't a particularly good deal; Admiral shares of Long-Te...
by grabiner
Sun May 13, 2018 7:28 pm
Forum: Investing - Theory, News & General
Topic: Anything wrong with too many lots?
Replies: 47
Views: 4665

Re: Anything wrong with too many lots?

The 30-day rule applies to the date of the sale, not to the date of the purchase. If you sell a lot on Monday, May 14, you can only have a wash sale if you bought replacement shares between April 14 and June 13. Thus, if you purchase monthly, you must sell your May 1 purchase, and avoid making a Ju...
by grabiner
Sun May 13, 2018 7:16 pm
Forum: Investing - Help with Personal Investments
Topic: Factors Suggesting One Should Buy SPIA
Replies: 90
Views: 6471

Re: Factors Suggesting One Should Buy SPIA

As I recall the suggestion by Pfau is that the proper pairing is SPIA with equities in comparison to bonds with equities This is where annuities can get interesting is as a fixed-income alternative. Just for fun I thought I'd try disregarding Taylor's advice and considered a 50 year old couple who ...
by grabiner
Sun May 13, 2018 7:00 pm
Forum: Investing - Help with Personal Investments
Topic: VTSAX or VEXAX [Vanguard Total Stock Market vs. Extended Market Index]
Replies: 11
Views: 826

Re: VTSAX or VEXAX [Vanguard Total Stock Market vs. Extended Market Index]

If you want to increase your overweighting of small-caps, Extended Market in a Vanguard account is not the best way to do this; it makes more sense to use a dedicated small-cap fund such as Small-Cap Index. It might be best to replicate Total Stock Market exactly in your TSP (holding the C and S fun...
by grabiner
Sun May 13, 2018 6:49 pm
Forum: Personal Finance (Not Investing)
Topic: Taxes on cashing in investment
Replies: 13
Views: 984

Re: Taxes on cashing in investment

The only valid advice this forum can give you is the advice to see an attorney. +1. An attorney with probate experience. Plus a CPA for the taxes. And it will be worth the money. If your father doesn't understand the tax details, he could easily pay taxes that he doesn't owe, or fail to pay taxes t...
by grabiner
Sun May 13, 2018 7:32 am
Forum: Investing - Theory, News & General
Topic: Anything wrong with too many lots?
Replies: 47
Views: 4665

Re: Anything wrong with too many lots?

The 30-day rule applies to the date of the sale, not to the date of the purchase. If you sell a lot on Monday, May 14, you can only have a wash sale if you bought replacement shares between April 14 and June 13. Thus, if you purchase monthly, you must sell your May 1 purchase, and avoid making a Ju...
by grabiner
Sun May 13, 2018 7:31 am
Forum: Investing - Help with Personal Investments
Topic: [Three-fund portfolio in taxable account (New York City)]
Replies: 17
Views: 1276

Re: [Three-fund portfolio in taxable account (New York City)]

In New York City, at least your New York muni bonds should be in a taxable account. You pay much higher taxes than most taxpayers do on stocks, but you pay the same tax as anyone else on NY munis. Therefore, it is more attractive for you to hold NY munis in a taxable account. If you don't want all ...
by grabiner
Sun May 13, 2018 7:28 am
Forum: Investing - Theory, News & General
Topic: Guidelines on ratio of Pre-tax, Roth, Post-tax Investing
Replies: 33
Views: 1622

Re: Guidelines on ratio of Pre-tax, Roth, Post-tax Investing

Working on re-allocating this weekend. Are there any guidelines to ratio of pre-tax, roth, and post-tax investing? The ideal amount of post-tax investing is zero, unless the post-tax investing is non-deductible (non-deductible IRA, after-tax 401(k)), or you need the money before retirement. A Roth ...
by grabiner
Sun May 13, 2018 7:24 am
Forum: Investing - Help with Personal Investments
Topic: Should I sell Small Cap Value Fund and move it into Roth?
Replies: 23
Views: 1897

Re: Should I sell Small Cap Value Fund and move it into Roth?

I was planning on funding my Roth with each paycheck and have it maxed out by year end; do you think it would be better to sell out of the taxable and fund quickly, all at one time? No, because you'll have a significant tax bill, for the benefit of a few extra months of tax deferral. (If you have a...
by grabiner
Sat May 12, 2018 7:49 pm
Forum: Personal Finance (Not Investing)
Topic: Taxes on cashing in investment
Replies: 13
Views: 984

Re: Taxes on cashing in investment

Welcome to the forum, and sorry for your loss. Your mother owes taxes on income earned before she died. After she died, her assets are either part of her estate or belong to her heirs, and any income from those assets is taxed to the estate or her heirs. And you need to check the will and beneficiar...
by grabiner
Sat May 12, 2018 7:31 pm
Forum: Investing - Theory, News & General
Topic: Anything wrong with too many lots?
Replies: 47
Views: 4665

Re: Anything wrong with too many lots?

Someone more experienced might correct me, but it seems to me that many lots can cause problems in a taxable account if you want to tax loss harvest (unless you don't mind creating a wash sale). If you want to sell a lot that has a loss, but you have another lot that was bought less than thirty day...
by grabiner
Sat May 12, 2018 7:27 pm
Forum: Investing - Help with Personal Investments
Topic: Selling index funds outside tax sheltered accounts to invest in Roth IRA - Good or Bad?
Replies: 11
Views: 760

Re: Selling index funds outside tax sheltered accounts to invest in Roth IRA - Good or Bad?

If you can't max out your retirement accounts, and you don't need the money before retirement, selling taxable investments for a capital gain to invest more in retirement accounts is a good deal. You will pay a capital-gains tax on the sale, but you would pay that tax eventually, and you avoid futu...
by grabiner
Sat May 12, 2018 7:26 pm
Forum: Investing - Help with Personal Investments
Topic: Should I sell Small Cap Value Fund and move it into Roth?
Replies: 23
Views: 1897

Re: Should I sell Small Cap Value Fund and move it into Roth?

You really need to plug your own numbers into Triceratop's spreadsheet. For me VBR only works out to a few basis points worse than VTI in taxable. It's a non-issue. And while I would prefer holding small-cap value in an IRA to save those few basis points (and do this myself; Total Stock Market is m...
by grabiner
Sat May 12, 2018 7:24 pm
Forum: Investing - Theory, News & General
Topic: 2017 Relative Tax Efficiency
Replies: 49
Views: 7088

Re: 2017 Relative Tax Efficiency

Also interesting that VSS is way more inefficient than several bond funds, including Total Bond. The high tax cost is the result of a high yield (which I do not believe is normal for this fund) and a low fraction of qualified dividends (which is normal). However, you are looking at the wrong line; ...
by grabiner
Sat May 12, 2018 7:17 pm
Forum: Investing - Theory, News & General
Topic: Guidelines on ratio of Pre-tax, Roth, Post-tax Investing
Replies: 33
Views: 1622

Re: Guidelines on ratio of Pre-tax, Roth, Post-tax Investing

Working on re-allocating this weekend. Are there any guidelines to ratio of pre-tax, roth, and post-tax investing? The ideal amount of post-tax investing is zero, unless the post-tax investing is non-deductible (non-deductible IRA, after-tax 401(k)), or you need the money before retirement. A Roth ...
by grabiner
Sat May 12, 2018 7:14 pm
Forum: Investing - Theory, News & General
Topic: 2017 Relative Tax Efficiency
Replies: 49
Views: 7088

Re: 2017 Relative Tax Efficiency

VWO (emerging markets) is really tax efficient, any ideas why? VWO is tax-efficient because of the foreign tax credit. Emerging markets tend to withhold more than developed markets in foreign taxes, and you lose this credit if you hold the fund in an IRA. Also interesting that VSS is way more ineff...
by grabiner
Sat May 12, 2018 6:58 pm
Forum: Investing - Help with Personal Investments
Topic: [Three-fund portfolio in taxable account (New York City)]
Replies: 17
Views: 1276

Re: [Three-fund portfolio in taxable account (New York City)]

In New York City, at least your New York muni bonds should be in a taxable account. You pay much higher taxes than most taxpayers do on stocks, but you pay the same tax as anyone else on NY munis. Therefore, it is more attractive for you to hold NY munis in a taxable account. If you don't want all y...
by grabiner
Sat May 12, 2018 6:51 pm
Forum: Investing - Help with Personal Investments
Topic: Paying Mortgage v Saving Down Payment
Replies: 3
Views: 551

Re: Paying Mortgage v Saving Down Payment

I am wondering if we should be investing more into an intermediate term bond fund, or possibly a tax exempt muni bond fund (VMITX?) that would have a better yield thaN what we are getting from paying down the mortgage. In other words, in saving the 150K, what would be the best type of fund? I make ...
by grabiner
Sat May 12, 2018 6:45 pm
Forum: Investing - Help with Personal Investments
Topic: International Stocks In A Taxable Account Index Fund
Replies: 5
Views: 732

Re: International Stocks In A Taxable Account Index Fund

I have a few shares in VTEB and MUB ETF bonds. They are in a regular brokerage fund and are not in any Roth IRA Funds. Should I reclassify if there is such a thing under the Roth IRA umbrella?? If you choose to hold bonds in your IRA, you would use a different bond fund, since the municipal bonds a...
by grabiner
Sat May 12, 2018 6:40 pm
Forum: Investing - Help with Personal Investments
Topic: Should I sell Small Cap Value Fund and move it into Roth?
Replies: 23
Views: 1897

Re: Should I sell Small Cap Value Fund and move it into Roth?

You really need to plug your own numbers into Triceratop's spreadsheet. For me VBR only works out to a few basis points worse than VTI in taxable. It's a non-issue. And while I would prefer holding small-cap value in an IRA to save those few basis points (and do this myself; Total Stock Market is m...
by grabiner
Sat May 12, 2018 6:38 pm
Forum: Investing - Help with Personal Investments
Topic: Selling index funds outside tax sheltered accounts to invest in Roth IRA - Good or Bad?
Replies: 11
Views: 760

Re: Selling index funds outside tax sheltered accounts to invest in Roth IRA - Good or Bad?

If you can't max out your retirement accounts, and you don't need the money before retirement, selling taxable investments for a capital gain to invest more in retirement accounts is a good deal. You will pay a capital-gains tax on the sale, but you would pay that tax eventually, and you avoid futur...
by grabiner
Sat May 12, 2018 5:12 pm
Forum: Local Chapters and Bogleheads Community
Topic: Master thread for Washington DC Area Bogleheads
Replies: 134
Views: 35522

Re: Master thread for Washington DC Area Bogleheads

Hello - Is there a group in or around Arlington, VA that meets? I would appreciate it if someonecould point me in its direction. The DC group usually meets in either Arlington or Silver Spring (on the Metro either way). Our next meeting is on June 3 in Silver Spring; see the first post of this thre...
by grabiner
Sat May 12, 2018 5:10 pm
Forum: Investing - Help with Personal Investments
Topic: Do you lose state taxes
Replies: 8
Views: 1716

Re: Do you loose state taxes

I'm sorry, I wasn't aware that Treasuries were not subject to state income tax, but that does seem to be the case. Vanguard provides this document showing how much of the income from various bond funds come from "U.S. government obligations": https://personal.vanguard.com/pdf/USGO_012016.pdf I thin...
by grabiner
Sat May 12, 2018 5:08 pm
Forum: Personal Finance (Not Investing)
Topic: Mortgage question: 20% down or larger down payment?
Replies: 47
Views: 4601

Re: Mortgage question: 20% down or larger down payment?

I put 40% down because, at the time I bought my place, I was working less (with a lower monthly income) so I couldn't afford the monthly payment with a 20% down payment. This is confusing. If you had the money to put down 40%, couldn't you have used that same money to "afford the monthly payment wi...
by grabiner
Fri May 11, 2018 8:52 pm
Forum: Personal Finance (Not Investing)
Topic: Mortgage question: 20% down or larger down payment?
Replies: 47
Views: 4601

Re: Mortgage question: 20% down or larger down payment?

I have asked a few questions earlier about mortgages in the US and everyone has been very helpful. Now that we are deciding to get a place I wanted to know if there was any advantage to a larger down payment vs 20%? Making a larger down payment is essentially an investment which pays a rate equal t...
by grabiner
Fri May 11, 2018 8:24 pm
Forum: Investing - Help with Personal Investments
Topic: Do you lose state taxes
Replies: 8
Views: 1716

Re: Do you loose state taxes

In most states, there is no tax advantage to holding Treasuries in a tax-sheltered account. In a tax-deferred account (401(k) or Traditional IRA), you will pay tax on your entire balance when you withdraw it, even if some of the investment would have been exempt from state tax. In a tax-free account...
by grabiner
Thu May 10, 2018 8:40 pm
Forum: Investing - Help with Personal Investments
Topic: Asset allocation ~200K with intention to save for house
Replies: 25
Views: 2975

Re: Asset allocation ~200K with intention to save for house

Vanguard Short-Term Tax-Exempt has a duration of about one year; Limited-Term, about three years; the intermediate-term muni funds, about five years; and the long-term muni funds, about seven years. (Long-term funds are somewhat riskier than the seven-year duration indicates, because most long-term...
by grabiner
Wed May 09, 2018 7:04 pm
Forum: Investing - Help with Personal Investments
Topic: Asset allocation ~200K with intention to save for house
Replies: 25
Views: 2975

Re: Asset allocation ~200K with intention to save for house

If you continue to hold a 3-year bond fund for the full 3 years, you may gain or lose if rates change in the third year, as you only have one year of the new rate. That was my question actually, how do I know if a bind fund is 3 year, 2 year or 1 year - the terms short, intermediate, long do not te...
by grabiner
Tue May 08, 2018 9:34 pm
Forum: Investing - Help with Personal Investments
Topic: Asset allocation ~200K with intention to save for house
Replies: 25
Views: 2975

Re: Asset allocation ~200K with intention to save for house

Thanks again grabiner. If you hold a bond fund for its duration, you make up for the falling price with a higher yield. I thought there is no fixed duration "lock-in" period of these bond funds. I mean I could sell them at any time. Do you mean there is a suggested period for these funds to maximiz...
by grabiner
Tue May 08, 2018 7:21 pm
Forum: Investing - Help with Personal Investments
Topic: Asset allocation ~200K with intention to save for house
Replies: 25
Views: 2975

Re: Asset allocation ~200K with intention to save for house

I did a quick calculation for VMLUX cd current 12 month CD at Ally Bank. VMLUX - 5 year yield is 1.05 which is tax equivalent to 1.4 for me (@25% Federal tax bracket). Also subtract ER of 0.09% makes it 1.31% The best estimate of a bond fund's return is the SEC yield, not the historical return. The...
by grabiner
Mon May 07, 2018 10:37 pm
Forum: Investing - Help with Personal Investments
Topic: Asset allocation ~200K with intention to save for house
Replies: 25
Views: 2975

Re: Asset allocation ~200K with intention to save for house

Should I consider throwing I bonds into the picture? This is a good idea, particularly for money you might not use. If you spend the money, you get inflation-linked growth, and avoid CA tax. And if you don't spend the money, the I-Bonds can keep growing tax-deferred for 30 years. Thanks. It looks l...