Search found 813 matches
- Tue Sep 09, 2008 12:46 pm
- Forum: Personal Investments
- Topic: Using "Tar-retirement inc. fund" for retirement ca
- Replies: 7
- Views: 1992
allow aunt to prosper
My approach would be to go with Wellesley Income fund and DO take REAL 4% withdrawals annually. Why not allow your aunt to prosper?
- Tue Sep 09, 2008 12:35 pm
- Forum: Personal Finance (Not Investing)
- Topic: Two Small Will Planning Question
- Replies: 6
- Views: 2069
could "controling from the grave" be avoided?
InvestingMom: Is this what you had in mind, or is it more fees to lawyers? Decision Making Mechanisms While some creators of trusts value the control they can exert from the grave, an excellent means by which to provide for flexible control is to permit trustees to make “appropriate” distributions to beneficiaries. But, who determines what is “appropriate”? The creators of the trust should be the one to make the decision, but often they are not alive so the decision, so the trustees must decide. This leads to the obvious questions of how do trustees decide what is appropriate. There is a disturbing distinction between how decisions should be made and how they are often made in practice. It is important to distinguish the means by which deci...
- Tue Sep 09, 2008 8:44 am
- Forum: Personal Investments
- Topic: TIPS in a taxable account?
- Replies: 14
- Views: 3992
Going into TIPS now for Curtis
Curtis, please check posts here by Larry S on TIPS and see if it is for you to go into it now: http://www.bogleheads.org/forum/viewtopic.php?t=22876&postdays=0&postorder=asc&start=50 BTW Curtis, how would you reply to a family member who emailed you this: We have only saved $15K for college. I have increased my 529 contributions to $800/month but am not putting anything into the 100% Equity option, where I have lost a few thousand dollars this year! I'm putting all future contributions into the Moderate fund {in Utah 529}. I realize that this will only put us on track to pay for in-state public college but that's life. With our luck, neither child will go to college and we'll have money stuck in a 529! :lol: p.s. this one is als...
- Tue Sep 09, 2008 8:30 am
- Forum: Personal Finance (Not Investing)
- Topic: Dental Insurance
- Replies: 32
- Views: 6993
Tip #2
Tip #2: The job of dental insurance underwriters is to press hard on dentists who can't fill their chairs with patients and thus get them to give in and share the revenue with the insurer's shareholders. Not the insured patients!
- Mon Sep 08, 2008 9:59 pm
- Forum: Personal Finance (Not Investing)
- Topic: Dental Insurance
- Replies: 32
- Views: 6993
a tip on teeth implants
Tip: for teeth implants go overseas and save more than 50%. In my town here in the US, you pay the oral surgeon $3K for an implant ($800 overseas). The crown that you get later at a dentist costs $2K. If you're toothless then you pay the oral surgeon $12K per jaw for 4 to 6 implants and a wax prosthesis (no bone grafting). After 6 mos, if no complications, you go to the dentist and pay $10K per jaw for the crowns. Total $44K in the US ($14K overseas). Quite expensive :lol
bluemarlin: are you kidding about the older ones get it to pay, b/c it's a sheer ripoff, especially if you got bridges and dentures?
Private dental insurance might be beneficial only to families with lots of kids.
bluemarlin: are you kidding about the older ones get it to pay, b/c it's a sheer ripoff, especially if you got bridges and dentures?
Private dental insurance might be beneficial only to families with lots of kids.
- Mon Sep 08, 2008 9:16 pm
- Forum: Personal Investments
- Topic: TIPS in a taxable account?
- Replies: 14
- Views: 3992
College savings for Curtis Lowe
My daughter is just basically a newborn....I'm funding a 529 w/ $100,000, but plan to stick another $200,000 for her education in a taxable account, in case she wants to go to a private school...So the taxable portfolio is long term..Would a TIPS ETF be ok? Thx for the help. It seems that you are not after financial aid. But you're interested in the accessibility, sheltering and collateralizing aspects. A Roth IRA (if you qualify AGI wise) would be a good place for the college savings but under these conditions: 1) You would withdraw only your contributions and not the earnings 2) Your children will NOT need financial aid, i.e. you're affluent. 3) You don't plan to pay student loans with the money Notice that the 10% tax penalty on early d...
- Mon Sep 08, 2008 3:41 pm
- Forum: Personal Finance (Not Investing)
- Topic: Two Small Will Planning Question
- Replies: 6
- Views: 2069
Reaching out from inside the grave
Does anyone have suggestions for ways to leave instructions in your will for the Trustee of a trust for minor children to invest the estate according to general Boglehead principles? Has anyone done this in writing in the will? Would this be too "restrictive" on the person and provide legal problems for them, or would it be wise? Maybe there could be a clause for the estate to purchase a copy of Boglehead's Guide to Investing to guide the trustee in managing the money? IMO, you can't do it b/c you can't control (reach out) from inside your grave :!: You might enter such a Trustee's Power in a Trust but the Trustee is NOT obligated to follow. Same with an executor in a Will. This reminds me of a rich Bostonian dad who entered (bef...
- Mon Sep 08, 2008 2:09 pm
- Forum: Personal Investments
- Topic: Help starting an investment program at age 59
- Replies: 6
- Views: 1921
59 who has nothing started
Hi, please explain this: I'm age 59 and have nothing started at all.
Can you provide your financial situation (money risk taking, etc) and GOALS? :roll:
Can you provide your financial situation (money risk taking, etc) and GOALS? :roll:
- Mon Sep 08, 2008 1:59 pm
- Forum: Personal Finance (Not Investing)
- Topic: Dental Insurance
- Replies: 32
- Views: 6993
Dental Insurance
From a maven in the field:
Self-insuring {I don't like this wording. How about sel-funding?} usually wins. May want to try an individual DHMO since these don't usually have an annual maximum benefit. Indemnity and DPPO plans usually have an annual maximum of $1,000-$1,500. {not enough even for one jaw removable denture costing $2K!- Vig]
However, with DHMO, copays could be high and specialty coverage is often only offered on a discounted basis. In addition, with DHMO, network choices may be very limited.
- Mon Sep 08, 2008 1:50 pm
- Forum: Personal Investments
- Topic: A 529 question
- Replies: 7
- Views: 2181
Cody's 529
Cody, usually grandparents can hold a 529 and it is also preferable since this way it does not effect much financial aid.
If your income is hi but not too hi (phaseout), you then might benefit by this:
A Roth IRA is a good place for college savings IF:
1) You would withdraw only your contributions and not the earnings
2) Your children will NOT need financial aid, i.e. you're affluent.
3) You don't plan to pay student loans with the money
Notice that the 10% tax penalty on early distributions from Roth IRA that ARE taxable, will be waved to the extent you pay for QHEE (qualified higher education expenses) for you, your spouse, your child or grandchild.
If your income is hi but not too hi (phaseout), you then might benefit by this:
A Roth IRA is a good place for college savings IF:
1) You would withdraw only your contributions and not the earnings
2) Your children will NOT need financial aid, i.e. you're affluent.
3) You don't plan to pay student loans with the money
Notice that the 10% tax penalty on early distributions from Roth IRA that ARE taxable, will be waved to the extent you pay for QHEE (qualified higher education expenses) for you, your spouse, your child or grandchild.
- Mon Sep 08, 2008 12:09 pm
- Forum: Investing - Theory, News & General
- Topic: TIPS and equities
- Replies: 106
- Views: 21872
Investing in a New World
sidetracked
- Mon Sep 08, 2008 11:12 am
- Forum: Personal Investments
- Topic: 403b - Vanguard Frustration
- Replies: 5
- Views: 1995
Roth IRA for college savings
Drummer:
1) You would withdraw only your conributions and not the earnings
2) Your childern will NOT need financial aid, i.e. you're affluent.
3) You don't plan to pay student loans with the money
Notice that the 10% tax penalty on distributions from Roth IRA that ARE taxable, will be waved to the extent you pay for QHEE (qualified higher education expenses) for you, your spouse, your child or grandchild.
A Roth IRA is a good place for college savings IF:
I'm going to open 529's for my childrens education.
1) You would withdraw only your conributions and not the earnings
2) Your childern will NOT need financial aid, i.e. you're affluent.
3) You don't plan to pay student loans with the money
Notice that the 10% tax penalty on distributions from Roth IRA that ARE taxable, will be waved to the extent you pay for QHEE (qualified higher education expenses) for you, your spouse, your child or grandchild.
- Mon Sep 08, 2008 9:08 am
- Forum: Investing - Theory, News & General
- Topic: W-8BEN form for Non-US investors - can anybody help?
- Replies: 16
- Views: 7996
- Mon Sep 08, 2008 8:45 am
- Forum: Personal Investments
- Topic: Bonds and non-resident alien
- Replies: 4
- Views: 4432
1040NR
I was reading about taxation of non-resident aliens and it says: # No tax on capital gains. This means that a brokerage or a mutual fund should withhold nothing when selling shares. With respect to mutual funds, long-term capital gain distributions are exempt as well. # No tax on bank interest. This means regular accounts with credit unions, savings and loans, etc. # No tax on portfolio interest. (It's not always easy to figure out interest on what bonds qualifies as "portfolio interest", though. Some readers have reported that brokerage firms are confused on this issue, unfortunately.) # 30% flat-rate tax on dividends. Generally this includes dividend and short-term cap gain distributions by mutual funds. This rate may be reduce...
- Sun Sep 07, 2008 10:49 pm
- Forum: Personal Investments
- Topic: Bonds and non-resident alien
- Replies: 4
- Views: 4432
Nonresident Aliens Tax
See here what capital gains are taxed: http://www.irs.gov/businesses/small/international/article/0,,id=129253,00.html Excerpt: It all has to do with the source of the CG and your status The Taxation of Capital Gains of Nonresident Alien Students, Scholars and Employees of Foreign Governments The capital gains income of nonresident alien students, scholars, and employees of foreign governments and international organizations may be taxed in a different way than the capital gains income of other nonresident aliens. The following discussion assumes that the capital gains in question are not effectively connected with the conduct of a trade or business in the United States. Under the residency rules of I.R.C. § 7701(b) most foreign students, fo...
- Sun Sep 07, 2008 10:01 pm
- Forum: Personal Investments
- Topic: TIPS in a taxable account?
- Replies: 14
- Views: 3992
TIPS in a taxable account
Curtis, here is an excerpt from Larry Swedroe's recent post: TIPS are superior to nominal bonds as diversifiers of equity risks. While nominal bonds have low correlation to equity risks (though the longer the maturity the higher the correlation), TIPS are one of just two asset classes that have negative correlation to stocks (the other being commodities). Negative correlation means that when one asset class has above average returns, the other tends to produce below average returns, and vice versa. Probably the best way for an individual to access the asset class is Vanguard’s TIPS fund. However, you can save even the fund’s relatively low operating expense ratio by purchasing TIPS directly from the government at the regular auctions. {but ...
- Sun Sep 07, 2008 9:03 pm
- Forum: Investing - Theory, News & General
- Topic: 403B choices
- Replies: 9
- Views: 2459
Vanguard Signal Shares
I am wondering if USAA, MetLife, or Safeco have a Vanguard Signal Shares arrangements for 403(b)?
- Sun Sep 07, 2008 7:07 pm
- Forum: Investing - Theory, News & General
- Topic: TIPS and equities
- Replies: 106
- Views: 21872
Dyslexia
Larry S:
Larry, if it's correct then my 41 yrs old son is dyslexic (and ADHD too). I have found him to shine in very specific and important fields. Fixing computers, resolving technical bugs, compassionately helping people in needs and being a nice person are amongst them. But not in saving money which his wife takes care of. :lol:Now when you correct for my dyslexia
- Sun Sep 07, 2008 6:49 pm
- Forum: Personal Finance (Not Investing)
- Topic: recommendation or personal finance software
- Replies: 5
- Views: 2167
Financial planning software
I agree with TFB about Quicken. As to doing X-Ray, the only choices are from M*. Financial planning software are doing most (except the X-Ray) but cost good money. One of them named irebel costs $50K. So only a group of financial planners would purchase it. See also here:
http://www.financial-planning.com/commu ... e.html?pg=
http://www.financial-planning.com/commu ... e.html?pg=
- Sun Sep 07, 2008 3:50 pm
- Forum: Investing - Theory, News & General
- Topic: 403B choices
- Replies: 9
- Views: 2459
ING 403(b) with Vanguard Signal Shares
Re-edit: I missed the OP saying that Vanguard is no longer an option. But I leave my old post as is.
My ING 403b offers these Vanguard (Signal Shares) funds:
S&P 500 Index Fund (ER .07%)
Mid-Cap Index Fund (ER .10%)
Small-Cap Index Fund (ER .10%)
They also offer Dodge & Cox International (A fund I have always liked)
Assuming that there is NO extra fees involved besides the Signal Shares, I would be happy with:
(for someone below age of 40)
35% S & P 500
15% Mid-cap
05% Sm cap
25% DODFX
20% TIPS and bonds (or Total Bond Market Index fund)
See this for Signal Shares expenses:
https://institutional.vanguard.com/iwe/ ... aresQA.pdf
- Sun Sep 07, 2008 2:00 pm
- Forum: Personal Investments
- Topic: Need advice for dealing with a prodigal father
- Replies: 43
- Views: 8666
10 commandments
[religious remark and link removed by Mod]
gweinstn: My larger financial risk is supporting him
- Sun Sep 07, 2008 1:53 pm
- Forum: Investing - Theory, News & General
- Topic: 529 plan comparison on Google Spreadsheet
- Replies: 6
- Views: 2950
529 spread sheet on Google
Hi, and thanks. Here is a copy of my post from: http://www.bogleheads.org/foru....mp;start=0 I and my son (from GA) have decided on the UTHA 529's Aggressive approach, and holding it till 3 to 5 years before college. Then switching to their Conservative. Otherwise, the return curve starts decreasing too soon in our opinion. Here is an example showing this principle (from DEC 2007 values): Backtesting returns over past 5 to 10 years of the Utah plan allocations: UTAH 529 Option 8 Age Based allocation BEG annual return = 14% UTHA 529 Option 8 Age Based allocation END annual return = 08% .........................................................................Average = 11% But, I chose the following one instead: UTAH 529 Option 6 Static alloca...
- Sun Sep 07, 2008 1:29 pm
- Forum: Investing - Theory, News & General
- Topic: 403B choices
- Replies: 9
- Views: 2459
some one else 403(b)
Hi, my daughter in law is in the same boat. So I started the followings:
1) Check these:
http://www.irs.gov/pub/irs-pdf/p571.pdf
And also this:
http://www.irs.gov/pub/irs-tege/pub4546.pdf
2) Find out from each vendor the type of funds (expense ratios?) it offers for 403(b) custodial mutual funds. Also, find out if it offers Vanguard funds thru no-transaction-fee option.
The vendors in my case are here:
http://www.cobbk12.org/hr/benefits/TaxShelter.pdf
and talking about a contribution of $15.5K
But, I am still busy with it
1) Check these:
http://www.irs.gov/pub/irs-pdf/p571.pdf
And also this:
http://www.irs.gov/pub/irs-tege/pub4546.pdf
2) Find out from each vendor the type of funds (expense ratios?) it offers for 403(b) custodial mutual funds. Also, find out if it offers Vanguard funds thru no-transaction-fee option.
The vendors in my case are here:
http://www.cobbk12.org/hr/benefits/TaxShelter.pdf
and talking about a contribution of $15.5K
But, I am still busy with it
- Sun Sep 07, 2008 11:19 am
- Forum: Personal Investments
- Topic: Need advice for dealing with a prodigal father
- Replies: 43
- Views: 8666
dr. gweinstein
gweinstn, do I see it clear that after your dad helped you go to med school this is your payback? Why don't you help dad enjoy life and be thankful that he is still alive? :roll:
- Sun Sep 07, 2008 11:01 am
- Forum: Personal Investments
- Topic: Estimating how much to save for retirement
- Replies: 4
- Views: 1814
Money needed for retirement?
No calculator but check this article: http:{take this space out and copy to the address bar}//spwfe.fpanet.org:10005/public/Unclassified%20Records/FPA%20Journal%20April%202007%20-%20National%20Savings%20Rate%20Guidelines%20for%20Individuals.pdf More thoughts: If I was to retire again, I would follow the above guidelines by Roger Ibbotson, plus keep an extra of $300K to cover medical expense besides those covered by Medicare and any LTCIs. Long term Insurance (LTCI) is a must IMO. I would get it at a the age of 50 to 60. Notice that those who saved for retirement less than $500K (with only SS benefits as other income) could annuitize portions of their portfolios. Buying fixed SPIAs in batches, as you age, from different providers, could spre...
- Sun Sep 07, 2008 8:56 am
- Forum: Personal Investments
- Topic: Why not just buy Wellington?
- Replies: 39
- Views: 11083
Gov employees got the best of it
Sidetracked
- Sat Sep 06, 2008 10:38 pm
- Forum: Investing - Theory, News & General
- Topic: CCF impact on overall portfolio returns
- Replies: 26
- Views: 6074
JEALOUSY AMONGST AUTHORS INCREASES WISDOM
Without any harm or bad feeling intended, in the Hebrew Talmud there is a proverb saying:Thank you Mel. I sure get tired of the squabbling.
JEALOUSY AMONGST WRITERS INCREASES WISDOM :lol:
- Sat Sep 06, 2008 9:05 pm
- Forum: Personal Investments
- Topic: Why not just buy Wellington?
- Replies: 39
- Views: 11083
Old investors
Taylor: older investors often have most of their investments in taxable securities which they are holding for heirs who can receive them free of capital gains and income taxes. Taylor: most investors who have retired before 1975 don't have IRAs b/c it was not available then. See history of IRA: http://library.thinkquest.org/05aug/01026/spanish/ira.html Also, older investors are sitting on active funds instead of index funds in taxable accounts not necessarily to pass it to heirs by step up in basis but b/c there were no index funds at the time. So the cost bases in those active funds, that they invested in, are now so low (hi nonrealized CG) that it would be silly to switch to index funds and pay the CG tax. See this about how many old inve...
- Sat Sep 06, 2008 8:39 pm
- Forum: Personal Investments
- Topic: Why not just buy Wellington?
- Replies: 39
- Views: 11083
Craig Israelsen's 7Twelve portfolio allocation
Landy YDNAL:
Landy, of course I agree with you about the need for diversification to see a portfolio succeed. I also agree that I should wait until jetpilot returns.
On the other hand, I didn't see it as jetpilot wanting to consolidate the portfolio, but rather considering Wellington for new contributions going forward. Having 3 funds (total) is fairly simple even when you need to rebalance and TLH.
Perhaps jetpilot can add further information to eliminate assumptions.
Landy, of course I agree with you about the need for diversification to see a portfolio succeed. I also agree that I should wait until jetpilot returns.
- Sat Sep 06, 2008 8:14 pm
- Forum: Personal Finance (Not Investing)
- Topic: recommendation or personal finance software
- Replies: 5
- Views: 2167
- Sat Sep 06, 2008 1:22 pm
- Forum: Personal Investments
- Topic: Rolling a 403b to an IRA
- Replies: 13
- Views: 3761
IRS about 403(b) rollovers
Don't forget to check these also:
IRS Pub. 571
http://www.irs.gov/pub/irs-pdf/p571.pdf
And also this:
http://www.irs.gov/pub/irs-tege/pub4546.pdf
IRS Pub. 571
http://www.irs.gov/pub/irs-pdf/p571.pdf
And also this:
http://www.irs.gov/pub/irs-tege/pub4546.pdf
- Sat Sep 06, 2008 10:58 am
- Forum: Investing - Theory, News & General
- Topic: CCF impact on overall portfolio returns
- Replies: 26
- Views: 6074
Need guidlines from Larry S
oops, it's getting too hot
- Sat Sep 06, 2008 9:25 am
- Forum: Investing - Theory, News & General
- Topic: CCF impact on overall portfolio returns
- Replies: 26
- Views: 6074
Larry about CCF
Hi Larry, I see right away that adding small amounts of CCF to a portfolio not only boosted its returns but prevented it from loosing. During the last 12 months the 6% in PIMCO PCRDX (in my low- correlation allocations portfolio) rose some 17% and the 6% in Hussman Strategic HSTRX rose some 12%, and they held the fort
On your new book about RETIREMENT have you got the the list of contents that you could share with us :roll:
On your new book about RETIREMENT have you got the the list of contents that you could share with us :roll:
- Sat Sep 06, 2008 8:23 am
- Forum: Personal Investments
- Topic: Tax Efficiency in Roth IRA vs Traditional IRA
- Replies: 15
- Views: 5668
asset location sequence
It really depends on your taxrate. The idea is that
1) First take advantage of those that are matched by employer matches for 401(k) & 304(b) & 457
2) Next put most tax IN efficients in your Roth if you got the money to pay the tax (also on conversions), including Roth IRA, Roth 401(k) and Roth 304(b), in ranking order of most tax iN efficient funds go first
3) Otherwise, fill the 401(k), 304(b), and the IRA with the rest tax IN efficents, in ranking order as bove
4) The remaining should go to taxables in stock index funds if possible
The higher your taxrate the more effective are the above rules
1) First take advantage of those that are matched by employer matches for 401(k) & 304(b) & 457
2) Next put most tax IN efficients in your Roth if you got the money to pay the tax (also on conversions), including Roth IRA, Roth 401(k) and Roth 304(b), in ranking order of most tax iN efficient funds go first
3) Otherwise, fill the 401(k), 304(b), and the IRA with the rest tax IN efficents, in ranking order as bove
4) The remaining should go to taxables in stock index funds if possible
The higher your taxrate the more effective are the above rules
- Sat Sep 06, 2008 7:34 am
- Forum: Personal Investments
- Topic: Why not just buy Wellington?
- Replies: 39
- Views: 11083
jetpilot wants SIMPLICITY
OP:
I see three options so far for holding only one fund to make it simple and safe (More than one fund call for decisions such as location, rebalancing, tax loss harvesting, etc. which don't comply with SIMPLICITY):
1. Stay with Wellington only
2. Go for Target Dated Retirement fund (far out)
3. Go for Vanguard World ETF (or Dodge & Cox World fund)
and
I just turned 55 and I REALLY want to make my life simple.
(There is no reply yet about donor-advised fund)This money is not needed for my wife and I to live. I plan on leaving it all to ST Jude Children's Hospital so I'd like it to grow greatly yet safely.
I see three options so far for holding only one fund to make it simple and safe (More than one fund call for decisions such as location, rebalancing, tax loss harvesting, etc. which don't comply with SIMPLICITY):
1. Stay with Wellington only
2. Go for Target Dated Retirement fund (far out)
3. Go for Vanguard World ETF (or Dodge & Cox World fund)
- Fri Sep 05, 2008 10:00 pm
- Forum: Personal Investments
- Topic: Why not just buy Wellington?
- Replies: 39
- Views: 11083
is jetpilot gone?
where is jetpilot from GA? :roll:
- Fri Sep 05, 2008 5:03 pm
- Forum: Personal Investments
- Topic: Allocation for 89 year old?
- Replies: 10
- Views: 2763
Good Samaritans
Pam, it would be nice if Good Samaritans would be protected in rendering financial advice as helping in other activities.
- Fri Sep 05, 2008 2:54 pm
- Forum: Personal Investments
- Topic: Allocation for 89 year old?
- Replies: 10
- Views: 2763
89 year old
Pam wrote:
But a certified & licensed fee- only CFP with more than 10 years experience should do it. Notice that he/she may not agree with your "suggestions". :roll:
These are the likely suiters who could go after you.
Two of those relatives are now in their 50's, and two are in their 20's. She plans to claim the IRA's her son left her, i.e., not to pass them directly through to the relatives.
But a certified & licensed fee- only CFP with more than 10 years experience should do it. Notice that he/she may not agree with your "suggestions". :roll:
- Fri Sep 05, 2008 2:16 pm
- Forum: Personal Investments
- Topic: Allocation for 89 year old?
- Replies: 10
- Views: 2763
seek a CFP
Sorry, but if you're not a certified financial advisor you could cause more damage than good (besides going into lawsuits).
- Fri Sep 05, 2008 2:08 pm
- Forum: Personal Investments
- Topic: Why not just buy Wellington?
- Replies: 39
- Views: 11083
JetPilot
JetPilot, your choice: Past returns (%): Fund..........2003......2004.....2005.....2006.....2007.......2008.....SD.....Beta 3 funds.......26..........14..........8.........14..........11.......(-11).......9.7.....1.2 Wellington...21..........11..........7.........15...........8.......( -8 ).......6.2.......0.8 3 funds = 1/3 VTSMX + 1/3 VGTSX+ 1/3 VIPSX SD = 3 yrs Standard Deviation (general volatility) Beta = 3 yrs Beta (volatiliy re the S&P 500) 3 funds: 32% Foreign stocks; 33% cash & bonds Note: for a 55 years old pre-retiree 32% in foreign stocks is hi. Check that Vanguard Target Retirment fund 2015 holds only 12.4% in foreign stocks (as % of total assets) and 2010 fund holds even less at 10%. 29 28 22 06 05 05 01 02 01 ER = 0.21...
- Fri Sep 05, 2008 12:38 pm
- Forum: Personal Investments
- Topic: Why not just buy Wellington?
- Replies: 39
- Views: 11083
VTSMX vs. VWELX
Taylor wrote: * Wellington is very tax-INefficient compared with Total Stock Market. The figures below reflect Vanguard fund returns on December 1999 from "The Independent Adviser for Vanguard Investors" ( Total International was too young to have 5-year returns): WELL.----TSM 102.5%--212.4%------ 5-year cummulative return 80.7%----202.0%------After-tax return 79%--------95%---------Tax Efficiency From M*: Net after tax avrg returns (%) at max taxrate: Fund...............3 yrs............5 yrs............10 yrs....Sharpe Ratio (past 5 yrs) VTSMX.............3.8..............7.4...............5.2................ 0.04 VWELX.............4.6..............7.4...............5.9................0.35 Which fund has the higher risk adjusted...
- Fri Sep 05, 2008 11:01 am
- Forum: Personal Investments
- Topic: Converting IRA to Roth for older person
- Replies: 5
- Views: 1938
To Roth or not to Roth?
Hi as I understand it the current conversion phaseouts have to do with your adjusted gross income and not with the IRA size. In 2010 these phaseouts limits suppose to be deleted for 2 years. About your other question see this: Excerpt: ---- Abstract ----- Do regular 401(k) and IRA accounts offer greater tax benefits than Roth 401(k)s and Roth IRAs? This is a tough question. Regular 401(k)s and IRAs save taxes in the short term; Roth accounts save taxes in the long term. Regular 401(k)s and IRAs are vulnerable to future income tax hikes, but may benefit from a future switch to consumption taxation if the switch exempts withdrawals from income taxation. Roth accounts are exempt from future income tax hikes, but are exposed to future consumpti...
- Fri Sep 05, 2008 10:52 am
- Forum: Personal Investments
- Topic: Good Fidelity fund that surpasses Vanguard's?
- Replies: 9
- Views: 3557
Fidelty vs. Vanguard
Fidelity family M* score (5 is top) Asset classes...........score....% of Assets Domestic Stock.........4.0........... 55.48 International Stock...3.5............ 12.76 Municipal Bond..........4.4..............2.30 Taxable Bond............3.7............11.46 Average Expense Ratio % Domestic Stock......... 1.26- Average International Stock....1.47- Average Municipal Bond.......... 0.73- Below Avg Taxable Bond............ 0.92- Average $$$$$$$$$$$$$$$$$$$$$$$$$$$$$$ Vanguard family M* score: Asset Class............... Score ......% of Assets Domestic Stock............3.5......... 51.14 International Stock......3.8......... 12.01 Municipal Bond.............4.3...........5.67 Taxable Bond...............4.3.........16.93 Average Expense Ratio ...
- Fri Sep 05, 2008 9:02 am
- Forum: Investing - Theory, News & General
- Topic: W-8BEN form for Non-US investors - can anybody help?
- Replies: 16
- Views: 7996
Tax guide for Aliens
.Yes, I bank in one of these tax haven countries .But on W8-BEN form they ask for 'Country of Residence' which is Vietnam. Also I checked on IRS website, even Hong Kong doesn't have Tax treaty with US. I am puzzled. MT Not all countries have a tax treaty with the US. The 35% that you mentioned seems to be 30% withholding tax by providers of investment. Check IRS Publication 519 (2007), U.S. Tax Guide for Aliens Here: http://www.irs.gov/publications/p519/index.html And here: NRA= Non-Resident Aliens Withholding On Payments of U.S. Source Income to Foreign Persons IRC 1441 to 1443 (Form 1042) Generally, a foreign person is subject to U.S. tax on its U.S. source income. Most types of U.S. source income received by a foreign person are subject...
- Thu Sep 04, 2008 10:56 pm
- Forum: Personal Investments
- Topic: Why not just buy Wellington?
- Replies: 39
- Views: 11083
Adding funds to Wellington backfires
Adding funds to Wellington backfires, so just leave Wellington alone as is! I have no tax deferred accounts. :cry: But if my Fed taxrate was below 25% I would hold this super fund in my taxable account and go play golf instead of correct locationing, rebalancing, tax loss harvesting and endless massaging, needed with S&D funds. This fund is also a super cash cow to withdraw from (almost as safe for real 4% WD as Wellesley but a bit bump yer). Both funds would allow an investor to withdraw 4% REAL withdrawl since 1973 and leave plenty for bequests, as of today. See this by TRevH: When doing the 1995-YTD2006 backtest for lazy portfolio's I did include a mix that has Wellingon as the CORE and adding in other asset classes that Wellington d...
- Thu Sep 04, 2008 10:35 pm
- Forum: Personal Finance (Not Investing)
- Topic: Does new car purchase make sense?
- Replies: 34
- Views: 8604
Auto safety
Sometimes these fancy new "safety features" are just cover ups. Innovative advances will soon make driving safer than ever Electronic stability control (ESC), which selectively applies brakes to one or more wheels when a vehicle is about to slide out of control, is the most important safety advance since the safety belt. Recent studies have found that ESC could save as many as 10,000 lives a year if all cars had the system. Beginning in 2012, the federal government will require that all new cars come equipped with ESC. See here: http://www.consumerreports.org/cro/cars/car-safety/car-safety-reviews/whats-next-in-auto-safety-4-07/overview/0704_whats-next-in-auto-safety_ov.htm?resultPageIndex=1&resultIndex=1&searchTerm=auto%...
- Thu Sep 04, 2008 6:56 pm
- Forum: Investing - Theory, News & General
- Topic: Do the Bogleheads have a vision statement???
- Replies: 9
- Views: 2621
Bogleheads mission statement
The Bogleheads MISSION STATEMENT as written by Jack Bogle himself: => CHOOSE A SOUND FINANCIAL LIFESTYLE => START EARLY AND INVEST REGULARLY => KNOW WHAT YOU'RE BUYING => PRESERVE YOUR BUYING POWER => KEEP COSTS AND TAXES LOW => DIVERSIFY YOUR STOCK PORTFOLIO [and diversify your stock risk with a bond portfolio] Two more characteristics: => Rationality- common sense, intolerant of illogical, preference for facts over hyperbole. => Caring- care about one another, eager to help all investors, regular visitors to the Web site and new ones, informed and naive, experienced and novice alike who have questions on almost any investment subject and willing to discuss issues of the day, with no holds barred (except for rudeness or coarseness). :share...
- Thu Sep 04, 2008 6:49 pm
- Forum: Personal Investments
- Topic: large inheritance - Advice needed on Asset Allocation
- Replies: 23
- Views: 6787
Become a client of Larry Swedroe
Hi, I would become a client of Larry Swedroe. Read here about Larry:
http://www.indexfunds.com/PFarticles/20 ... int_ST.htm
http://www.indexfunds.com/PFarticles/20 ... int_ST.htm
- Thu Sep 04, 2008 6:34 pm
- Forum: Personal Finance (Not Investing)
- Topic: Does new car purchase make sense?
- Replies: 34
- Views: 8604
Sell the car yourself and donate
If you "give" you then take liability
I've changed my mind: Time to give it to a high school student to drive and buy a new car.
If you donate to the school, then there are only a few middlemen in your area who specialize in such auctions. So the school will refer you to these outfits. You then sign that you agree to donate ANY amount that the auction will bring.
A better choice: sell the car yourself and donate some of the money to the school and get tax deduction.
- Thu Sep 04, 2008 6:18 pm
- Forum: Investing - Theory, News & General
- Topic: Poll 2. How many actively managed funds are you in?
- Replies: 22
- Views: 4742
I am in 100% acitve stock funds
Hi, it's me with the 100% "managed" stock funds but NOT bond funds. The problem with me is that I have retired before the index funds arrived. So I am locked in active stock funds, in my taxable accounts, with LOW tax costs basis, i.e. hi unrealized capital gains. However, my family members are about 50% in index funds.