Search found 849 matches
- Sun Mar 17, 2024 11:57 am
- Forum: Personal Consumer Issues
- Topic: Retuning an iPad— How to Clear All Sensitive Info?
- Replies: 3
- Views: 600
Re: Retuning an iPad— How to Clear All Sensitive Info?
Settings > General > Transfer or Reset iPad > Erase All Content and Settings.
- Wed Mar 13, 2024 11:04 am
- Forum: Personal Investments
- Topic: Newbie 2-Fund portfolio question
- Replies: 6
- Views: 450
Re: Newbie 2-Fund portfolio question
The only pitfall to consider with this portfolio is "can you stick with it?" It's a great portfolio: simple, diversified, low cost. There are an infinite number of portfolios that are worse. There are also some that are better—but you will not know that except in retrospect.
If you can avoid tinkering with this portfolio when part of it is taking a dive, I can't see any reason to do anything else. (Cue an argument about international stocks.)
If you can avoid tinkering with this portfolio when part of it is taking a dive, I can't see any reason to do anything else. (Cue an argument about international stocks.)
- Wed Mar 13, 2024 10:01 am
- Forum: Personal Consumer Issues
- Topic: [What UN-frugal thing do you do? What do you splurge on?]
- Replies: 785
- Views: 82861
- Wed Mar 06, 2024 9:58 am
- Forum: Personal Finance (Not Investing)
- Topic: College Resident Assistantship(RA) and filing 2023 1040 tax form
- Replies: 12
- Views: 817
Re: College Resident Assistantship(RA) and filing 2023 1040 tax form
My child is also an RA, and this is correct—I was surprised to learn about this, but it seems obvious in retrospect. If you require an domestic worker to live in your house, they're not taxed on imputed rent.
- Sat Feb 24, 2024 10:35 pm
- Forum: Investing - Theory, News & General
- Topic: Building a TIPS ladder for IRA RMDs
- Replies: 22
- Views: 2927
Re: Building a TIPS ladder for IRA RMDs
What does the second A stand for? If the answer is just that "DARA" is easier to say that "DARI," I accept that completely.
- Fri Feb 16, 2024 8:52 pm
- Forum: Personal Investments
- Topic: Helping a friend with messy IRA transfer
- Replies: 5
- Views: 963
Re: Helping a friend with messy IRA transfer
Understood, SuzBanyan! The Roth was in cash, so I suspect that if in fact the IRS levies taxes and penalties on the earnings, it will amount to literal pennies.
- Fri Feb 16, 2024 12:24 am
- Forum: Personal Investments
- Topic: Helping a friend with messy IRA transfer
- Replies: 5
- Views: 963
Re: Helping a friend with messy IRA transfer
Thanks very much.
She made the Roth contribution as a regular 2023 contribution (not an overcontribution—there was plenty of room). So it seems like this is just going to be a non-issue: no 1099-R and nothing in box 2 on the 5498. I understand there is still a chance of a CP2000, and my friend knows this, but this is a tiny credit union and not worth the time to continue tangling with.
She made the Roth contribution as a regular 2023 contribution (not an overcontribution—there was plenty of room). So it seems like this is just going to be a non-issue: no 1099-R and nothing in box 2 on the 5498. I understand there is still a chance of a CP2000, and my friend knows this, but this is a tiny credit union and not worth the time to continue tangling with.
- Thu Feb 15, 2024 3:52 pm
- Forum: Personal Investments
- Topic: Helping a friend with messy IRA transfer
- Replies: 5
- Views: 963
Helping a friend with messy IRA transfer
Hello, Bogleheads. A friend of mine is in the midst of a messy IRA transfer (two, actually), and I hit the ceiling of my knowledge, so I turn to you for help. Here's what happened. She held Roth and traditional IRAs at a credit union. She filled out a form requesting that the balance of both accounts be disbursed to her for a transfer and marked the "For my benefit" box on the form. The credit union issued two checks, one for each IRA, made out to her with no FBO designation on the check. No tax was withheld. She sent one to be deposited into her active 401(k), and it was accepted and deposited. She deposited the other check into her checking account and then contributed the full amount of that check to her Roth IRA. The credit un...
- Mon Feb 12, 2024 12:31 pm
- Forum: Personal Investments
- Topic: Porfolio Review-Follow Up
- Replies: 18
- Views: 1676
Re: Porfolio Review-Follow Up
Any gains in the taxable account are going to be very, very small. The non-VTI, non-MMF holdings in taxable amount to $23,552, of which certainly far less than 100% is gains. Sell it, pay the tax, and simplify.
- Sun Feb 04, 2024 9:33 pm
- Forum: Personal Finance (Not Investing)
- Topic: MAGI over limit for Roth contribution - what to do?
- Replies: 6
- Views: 705
Re: MAGI over limit for Roth contribution - what to do?
That will not work for two reasons: it would still be an overcontribution, and their MAGI is too high to make a deductible IRA contribution. They should do what mhalley suggested.cadreamer2015 wrote: ↑Sun Feb 04, 2024 9:28 pm My bad. Could they make a $5,000 contribution each to a traditional IRA, which would bring their MAGI down by $10,000 and lift the prohibition on making a Roth IRA contribution?
- Fri Feb 02, 2024 6:23 pm
- Forum: Investing - Theory, News & General
- Topic: How is the interest rate on TIPS bonds determined?
- Replies: 7
- Views: 758
Re: How is the interest rate on TIPS bonds determined?
I looked at the page in question. I think what the authors were saying is that if the TIPS you buy has a positive real yield at the time you buy it, you are guaranteed to receive that yield if you hold to maturity, not that TIPS always have a positive yield.
- Tue Jan 30, 2024 9:26 am
- Forum: Personal Investments
- Topic: I have 500k to invest but keep procrastinating
- Replies: 290
- Views: 51268
Re: I have 500k to invest but keep procrastinating
I’m just DCaing slowly and when I see opportunities, I increase my contribution. Meanwhile still making money in T bills Cds etc. The "opportunities" you see are not real. If it's possible for you to internalize this lesson now without getting burned later, it's going to save you money and pain down the road. One of the most important things we know as Bogleheads is that professionals are out there trying to time the market, pick stocks, and predict interest rates, and most of them are terrible at all of these things. It's so easy to convince yourself that you can do better. You drop some money into the market at what feels like an opportune time, and it goes up. You're a great investor! Learn to invest in the most boring, mechan...
- Tue Jan 16, 2024 10:04 am
- Forum: Investing - Theory, News & General
- Topic: Would Disappointed BND Investors Have Been More Satisfied with a Short-Duration Fund (e.g. BSV)?
- Replies: 455
- Views: 26229
Re: Would Disappointed BND Investors Have Been More Satisfied with a Short-Duration Fund (e.g. BSV)?
Sure there is an alternative. Shorten duration when real yields are negative instead of locking in negative real yields for years. Yes, I mentioned that. It doesn't work, and it's not because "you can't time the bond market" in some philosophical sense. It's because zero is an arbitrary number . First off, yields can slowly descend into negative territory, and you don't know when they're going to bottom out. If you shorten duration as soon as yields go negative, you will miss out on price gains as yields continue to drop. Second, what's so special about zero real yields? Personally, I would prefer to earn more than 2% real on my bonds. Should I shorten duration whenever yields drop below 2% and then get back in when McQ posts a n...
- Tue Jan 16, 2024 9:44 am
- Forum: Investing - Theory, News & General
- Topic: Would Disappointed BND Investors Have Been More Satisfied with a Short-Duration Fund (e.g. BSV)?
- Replies: 455
- Views: 26229
Re: Would Disappointed BND Investors Have Been More Satisfied with a Short-Duration Fund (e.g. BSV)?
Prior to BND losing NAV, investors were at negative real yields before taxes. That made no sense. Why would you hold an asset guaranteed to lose you money assuming no change in NAV? Because there is no reasonable alternative. Sometimes real interest rates are negative. The market is not required to offer you safe bonds at positive real yields. So... what do you do? Dump all your bonds and go to 100% stocks? Reach for yield by looking for riskier bonds? Try to shorten and extend duration at just the right time? Or do you suck it up and say, "Hey, sometimes interest rates are low. Bummer. My IPS doesn't require me to change my plan in response to changes in interest rates"? The other thing to keep in mind is that how you feel about...
- Sat Jan 13, 2024 9:02 am
- Forum: Personal Investments
- Topic: CDs versus VMFXX for safety and liquidity
- Replies: 11
- Views: 1701
Re: CDs versus VMFXX for safety and liquidity
Point well taken. That said, the question is; looking forward will the money market fund perform at the same level of a CD if rates are 5% as an example thus not locking up the money at all. I can't imagine one would drastically out perform the other. There is no way to know. The answer is "if they perform the same, they will perform the same." The Fed has said they are going to lower interest rates this year. That doesn't mean that they will—they have every right to change their minds, and no one can predict what will happen to interest rates. Predicting interest rates feels possible, but data from professional forecasters shows clearly that it's even harder than predicting the stock market. If interest rates go down, the CD wil...
- Mon Jan 08, 2024 1:41 pm
- Forum: Personal Investments
- Topic: 2024 Portfolio Review - 28yo w/ $200k
- Replies: 19
- Views: 2743
Re: 2024 Portfolio Review - 28yo w/ $200k
You're doing great, but I think you're overcontributing to Roth and taxable.
If you prioritize pre-tax, with your aggressive contributions, you're within spitting distance of the 12% bracket, and it's hard to see how you could end up in the 22% bracket or equivalent in retirement.
So why pay 22% now when you will have plenty of ways to access your money without penalty at a lower rate in early retirement, including Roth conversions and 72(t) SEPP?
If you prioritize pre-tax, with your aggressive contributions, you're within spitting distance of the 12% bracket, and it's hard to see how you could end up in the 22% bracket or equivalent in retirement.
So why pay 22% now when you will have plenty of ways to access your money without penalty at a lower rate in early retirement, including Roth conversions and 72(t) SEPP?
- Sat Dec 30, 2023 10:44 pm
- Forum: Personal Finance (Not Investing)
- Topic: How much does health insurance cost in the US when not working?
- Replies: 56
- Views: 8767
Re: How much does health insurance cost in the US when not working?
It really depends how much AGI you generate in retirement.
Have you played with the KFF calculator? Remember that your "household income" is not going to be nearly as high as when you were working if you're withdrawing any money from Roth or taxable accounts in retirement, or if you were previously earning income and saving it into a taxable or Roth account.
Have you played with the KFF calculator? Remember that your "household income" is not going to be nearly as high as when you were working if you're withdrawing any money from Roth or taxable accounts in retirement, or if you were previously earning income and saving it into a taxable or Roth account.
- Sat Dec 30, 2023 10:39 pm
- Forum: Personal Finance (Not Investing)
- Topic: This Wiki Article artiicle is confusing
- Replies: 88
- Views: 6283
Re: This Wiki Article Title is Misleading
So-called "tax-efficient" asset location strategies are a mirage; they silently increase after-tax risk. In contrast, a mirrored allocation strategy delivers outcomes which are consistent with the chosen asset allocation, before and after tax, regardless of future asset returns, future tax law changes, and future investor circumstance changes: post 1 ( data 1 ) and post 2 ( data 2 ). Analysis in presence of a taxable account: post 3 ( data 3 ). Mirroring with a single all-in-one fund or ETF is simple and can help avoid behavioral pitfalls. Here's a thread about it: The One-Fund Portfolio . Remember, years ago, when it was common for folks to say, "You save at your marginal tax rate but withdraw at your effective tax rate,&qu...
- Thu Dec 28, 2023 6:13 pm
- Forum: Personal Investments
- Topic: how do institutions know funds are pretax?
- Replies: 12
- Views: 1623
Re: how do institutions know funds are pretax?
I assume they don't know, and like a lot of tax-related things, it's just up to you to tell the truth.
But also... what's the grift here? "I paid tax on this money already, but bwaa ha ha, now I'm going to pay tax on it again"?
But also... what's the grift here? "I paid tax on this money already, but bwaa ha ha, now I'm going to pay tax on it again"?
- Tue Dec 26, 2023 3:17 pm
- Forum: Personal Finance (Not Investing)
- Topic: Taking over parent's mortgage in retirement
- Replies: 45
- Views: 4916
Re: Taking over parent's mortgage in retirement
It sounds like you're trying to cheat on your taxes.
If you do this, you now have a rental property. To start with, your parents will be paying you rent (that's what the IRS calls it when you own a home, and the resident sends you money and you use that money to pay the mortgage). That rent money is income.
Have you heard enough to decide not to do this yet?
If you do this, you now have a rental property. To start with, your parents will be paying you rent (that's what the IRS calls it when you own a home, and the resident sends you money and you use that money to pay the mortgage). That rent money is income.
Have you heard enough to decide not to do this yet?
- Sun Dec 24, 2023 9:54 am
- Forum: Personal Finance (Not Investing)
- Topic: Change 529 Owner to Beneficiary
- Replies: 5
- Views: 416
Re: Change 529 Owner to Beneficiary
I think waiting makes sense. I might find myself in a similar situation in a couple of years, so I'm curious to see how this all shakes out in practice.
Having said that, it's probably not that big a deal to say to your kid, "Hey, don't make any Roth IRA contributions until I finish unwinding your 529. You're welcome."
Having said that, it's probably not that big a deal to say to your kid, "Hey, don't make any Roth IRA contributions until I finish unwinding your 529. You're welcome."
- Sun Dec 24, 2023 9:21 am
- Forum: Personal Finance (Not Investing)
- Topic: Change 529 Owner to Beneficiary
- Replies: 5
- Views: 416
Re: Change 529 Owner to Beneficiary
The beneficiary of a 529 doesn't have to be your dependent. You've already gifted the beneficiary the money by contributing to the 529. However, this is kind of an interesting question, As far as we know at this point : * If you change the beneficiary of the 529, it resets the 15-year clock. * Conversions count toward your child's Roth contribution, so you will need to coordinate with them to avoid overcontribution. But you're talking about changing the owner, not the beneficiary, and I don't think that would restart the clock. I assume the intention is to let your child do their own Roth conversions without you having to be involved, which doesn't seem like a bad idea if you were planning to give them the money anyway. I don't know if this...
- Fri Dec 22, 2023 10:31 am
- Forum: Personal Investments
- Topic: Must be a dividend payout that caused my fund's NAV to drop, but where do I find it?
- Replies: 6
- Views: 1141
Re: Must be a dividend payout that caused my fund's NAV to drop, but where do I find it?
Yeah, I knew this was a dividend distribution, but didn't know where to find it. Tom, I think they added that line after I posted the question, which was during the tiny interval between the NAV drop and the dividend payout. It's fun that I finally noticed one of these!
- Thu Dec 21, 2023 5:16 pm
- Forum: Personal Finance (Not Investing)
- Topic: Zelle acceptance as B2B transactions?
- Replies: 3
- Views: 499
Re: Zelle acceptance as B2B transactions?
It looks like Zelle does support this. But all of the tenants would have to have access to Zelle from their business accounts, which seems unlikely.
I would take a look at Melio. It won't be as fast as Zelle, but it's designed for this type of situation and is free for ACH transfers. I don't see any reason this would require a special type of receiving account; it's just standard ACH. Not affiliated, just a satisfied customer.
I would take a look at Melio. It won't be as fast as Zelle, but it's designed for this type of situation and is free for ACH transfers. I don't see any reason this would require a special type of receiving account; it's just standard ACH. Not affiliated, just a satisfied customer.
- Thu Dec 21, 2023 4:59 pm
- Forum: Personal Investments
- Topic: Must be a dividend payout that caused my fund's NAV to drop, but where do I find it?
- Replies: 6
- Views: 1141
Re: Must be a dividend payout that caused my fund's NAV to drop, but where do I find it?
Thanks, livesoft. And This probably answers my question.
- Thu Dec 21, 2023 4:55 pm
- Forum: Personal Investments
- Topic: Must be a dividend payout that caused my fund's NAV to drop, but where do I find it?
- Replies: 6
- Views: 1141
Must be a dividend payout that caused my fund's NAV to drop, but where do I find it?
The NAV of Fidelity Inflation-Protected Bond Index Fund (FIPDX) dropped by 3.51% today. (The actual broad TIPS market was down by about 0.17%.) This is the first time I've personally noticed one of these "Help! My fund's NAV dropped!" events, and I'm curious where to look to see the dividend payout that must have been the cause. I don't see a 12/21/23 dividend on Fidelity.com, or a dividend payout in my account, but maybe I need to wait until tomorrow?
- Wed Dec 20, 2023 10:23 am
- Forum: Personal Investments
- Topic: Income Portfolio Discussion
- Replies: 61
- Views: 5328
Re: Income Portfolio Discussion
Yeah, dbr, I did have that thought about the SPIA, but I don't think that fits most people's definition of "stability of principal," in the sense that the principal value from the moment before you buy the SPIA to the moment after is quite unstable.
- Wed Dec 20, 2023 9:56 am
- Forum: Personal Investments
- Topic: Possible to move funds from Treasury Direct to Vanguard?
- Replies: 3
- Views: 1009
Re: Possible to move funds from Treasury Direct to Vanguard?
Probably not.
Vanguard clearly doesn't want to make it easy to use its brokerage account for ACH transfers not initiated by Vanguard. You can set up direct deposit, but I wouldn't feel confident using the routing and account numbers you get for direct deposit (or on checks) for general ACH.
Similarly, you can find your routing and account number for TD and use it for ACH *deposits*, but I would not feel comfortable trying to use those numbers for a withdrawal.
I always go TD to bank to Vanguard or vice versa.
Vanguard clearly doesn't want to make it easy to use its brokerage account for ACH transfers not initiated by Vanguard. You can set up direct deposit, but I wouldn't feel confident using the routing and account numbers you get for direct deposit (or on checks) for general ACH.
Similarly, you can find your routing and account number for TD and use it for ACH *deposits*, but I would not feel comfortable trying to use those numbers for a withdrawal.
I always go TD to bank to Vanguard or vice versa.
- Wed Dec 20, 2023 9:50 am
- Forum: Personal Investments
- Topic: Income Portfolio Discussion
- Replies: 61
- Views: 5328
Re: Income Portfolio Discussion
Remember: You can have stability of income or stability of principal, but not both. If you seem to find a solution that provides both, be very, very suspicious.
- Wed Dec 20, 2023 9:49 am
- Forum: Personal Investments
- Topic: Access to settlement fund
- Replies: 1
- Views: 348
Re: Access to settlement fund
Click on Holdings in the top navigation bar and scroll to your brokerage account. You should see an entry for Vanguard Federal Money Market Fund (Settlement Fund) on the left-hand side with a balance.
- Sat Dec 16, 2023 10:32 am
- Forum: Investing - Theory, News & General
- Topic: Winning the game and Dry Powder
- Replies: 157
- Views: 25984
Re: Winning the game and Dry Powder
This is probably an obnoxious "Bogleheadier-than-thou" statement, but the idea that I could successfully identify a good "investing opportunity" is very hard for me to understand. Here are some possibilities that come to mind: * A friend's business. No thanks. It's no more likely to succeed than anyone else's business, and I don't want to mix business and friendship. * A stock that seems undervalued—i.e., a stock in a company that seems bad and other people don't want to buy it. I have no idea how to distinguish this from a stock that's actually bad. * Crypto/private equity/real estate/other stuff I don't understand. * The broader market at some magical valuation number that I can identify but most investment professiona...
- Tue Dec 05, 2023 1:23 pm
- Forum: Personal Investments
- Topic: Just saw harsh criticism of Vanguard VMFXX
- Replies: 36
- Views: 5629
Re: Just saw harsh criticism of Vanguard VMFXX
I needed a good laugh today! In other news, a horse doesn't have an internal combustion engine.
- Tue Dec 05, 2023 9:18 am
- Forum: Personal Consumer Issues
- Topic: Pirate Ship - Save Up to 89%
- Replies: 32
- Views: 6454
Re: Pirate Ship - Save Up to 89%
Correct, Pirate Ship is a good way to buy USPS and UPS shipping labels and print them at home. If you've ever bought a label on the USPS or UPS site, you'll know that (at least last time I tried to do this), they ask a million questions over several web pages, most of which are irrelevant to you. Pirate Ship makes this easy and gets out of your way.
- Mon Dec 04, 2023 4:51 pm
- Forum: Personal Consumer Issues
- Topic: Pirate Ship - Save Up to 89%
- Replies: 32
- Views: 6454
Re: Pirate Ship - Save Up to 89%
I love Pirate Ship—great prices, great interface, excellent customer service (via chat) when I've needed it. I use it for all shipping labels.
No affiliation, of course, just a happy customer!
No affiliation, of course, just a happy customer!
- Sun Nov 26, 2023 6:49 pm
- Forum: Personal Investments
- Topic: Employer using new 403b plan
- Replies: 8
- Views: 1200
Re: Employer using new 403b plan
There's nothing wrong with this portfolio whatsoever if it matches your risk tolerance and desired asset allocation—these are all huge, passive, ultra-low-cost funds, and the total cost of the 403(b) is excellent as far as 403(b)s go!
- Sun Nov 26, 2023 6:29 pm
- Forum: Personal Investments
- Topic: IBond interest earned vs. compounded
- Replies: 4
- Views: 1042
Re: IBond interest earned vs. compounded
Nope, doesn't matter. There's no penalty, and interest is credited every month.
- Tue Nov 21, 2023 9:31 pm
- Forum: Personal Finance (Not Investing)
- Topic: Will most people have 85% of their SS taxed
- Replies: 9
- Views: 1800
Re: Will most people have 85% of their SS taxed
Here's an article from the reputable Center for Retirement Research at Boston College which reports that only about 1/3 of Americans age 70 pay federal income tax, and the proportion drops with increasing age. That includes tax on Social Security earnings.
Most Americans wouldn't know an RMD bomb if it went off in their kitchen!
Most Americans wouldn't know an RMD bomb if it went off in their kitchen!
- Tue Nov 21, 2023 9:18 pm
- Forum: Personal Investments
- Topic: Money Market Fund vs. HYSA
- Replies: 13
- Views: 4800
Re: Money Market Fund vs. HYSA
The money market fund yield is after the expense ratio. A money market fund yielding 4.99% is better than a HYSA yielding 4.3%.
If you happen to have a Vanguard account, Vanguard's treasury money market fund (VUSXX) is about the best yield you're going to find right now. I wouldn't hesitate to use that (or FZFXX!) in lieu of a HYSA, and in fact I do.
If you happen to have a Vanguard account, Vanguard's treasury money market fund (VUSXX) is about the best yield you're going to find right now. I wouldn't hesitate to use that (or FZFXX!) in lieu of a HYSA, and in fact I do.
- Tue Nov 21, 2023 9:16 pm
- Forum: Personal Finance (Not Investing)
- Topic: Will most people have 85% of their SS taxed
- Replies: 9
- Views: 1800
Re: Will most people have 85% of their SS taxed
Most Bogleheads? Yes. Most people in general? No.
- Sun Nov 05, 2023 3:37 pm
- Forum: Personal Investments
- Topic: Vanguard PAS vs VanguardRobo Advisor
- Replies: 8
- Views: 1494
Re: Vanguard PAS vs VanguardRobo Advisor
Do you feel like you're getting your money's worth from PAS now? Is it important to you to be able to get an advisor on the phone?
What do you feel like you might get from the Robo-Advisor product vs getting portfolio advice here on Bogleheads?
What do you feel like you might get from the Robo-Advisor product vs getting portfolio advice here on Bogleheads?
- Tue Oct 31, 2023 5:20 pm
- Forum: Personal Investments
- Topic: Contributions don't feel as effective as they do on paper
- Replies: 19
- Views: 2048
Re: Contributions don't feel as effective as they do on paper
I think you would feel much the same if the money was all in the same account. Part of being a good saver is feeling like, "But shouldn't I be saving more?" For me, at least, that feeling doesn't automatically turn off at the "right" savings rate, even if you have a very sensible plan and are sticking to it.
- Wed Oct 25, 2023 10:13 am
- Forum: Personal Investments
- Topic: Preparing for upgrading ibonds
- Replies: 12
- Views: 1964
Re: Preparing for upgrading ibonds
Here you go: https://tipswatch.com/tracking-inflation-and-i-bonds/chemocean wrote: ↑Wed Oct 25, 2023 10:06 am Please provide a url reference for the 3.94% variable rate annoucement. I don't remember if the calculation of the variable rate is fixed based on some specific CPI for specific months.
I am thinking about upgrading my Dec. 21 bonds at 0.0 fixed rate in November. Please confirm that their variable rate dropped to 3.38% after they renewed in June after the May revision of variable rate to 3.38%.
- Wed Oct 25, 2023 9:24 am
- Forum: Investing - Theory, News & General
- Topic: WSJ: Your 'Set It and Forget It' 401(k) Made You Rich. No More.
- Replies: 121
- Views: 23198
Re: WSJ: Your 'Set It and Forget It' 401(k) Made You Rich. No More.
Thanks for that, Halicar, but this still sounds "death of equities" stuff. "Investors are concerned." They "could feel more pain." "One unnerving possibility..."
I do agree with this part: "Investors can prepare by lowering their return expectations and playing defense," if what they mean is "your savings rate is the most important factor in achieving a successful retirement," which has always been true.
A lot of stuff could happen next, and anyone who knows for sure what will happen is in a great position to get rich! Unfortunately...
I do agree with this part: "Investors can prepare by lowering their return expectations and playing defense," if what they mean is "your savings rate is the most important factor in achieving a successful retirement," which has always been true.
A lot of stuff could happen next, and anyone who knows for sure what will happen is in a great position to get rich! Unfortunately...
- Wed Oct 25, 2023 9:09 am
- Forum: Investing - Theory, News & General
- Topic: WSJ: Your 'Set It and Forget It' 401(k) Made You Rich. No More.
- Replies: 121
- Views: 23198
Re: WSJ: Your 'Set It and Forget It' 401(k) Made You Rich. No More.
I don't have a WSJ subscription, so I'm going to guess what's behind the paywall:
When the market goes up, you make money.
When the market goes down, you lose money.
The solution: active management???
When the market goes up, you make money.
When the market goes down, you lose money.
The solution: active management???
- Tue Oct 17, 2023 10:18 am
- Forum: Personal Investments
- Topic: Could use some [portfolio] advice
- Replies: 15
- Views: 1873
Re: Could use some [portfolio] advice
I would consider it a compliment if someone described my portfolio as "generic."
- Tue Oct 17, 2023 10:13 am
- Forum: Personal Investments
- Topic: How to spread investments in multiple accounts?
- Replies: 10
- Views: 994
Re: How to spread investments in multiple accounts?
Agreed with jembke: I would absolutely use the Vanguard Target Retirement Fund in this scenario. And then I'd open Roth IRAs with Vanguard and do the same. (And since your 401(k)s offer excellent choices, I wouldn't be in any hurry to open an IRA unless you're able to max out both 401(k)s.)
If at some point you amass a sizable taxable account, then you can start thinking about tax-efficient asset location, but for now I'd choose the simplest option and focus on your savings rate.
If at some point you amass a sizable taxable account, then you can start thinking about tax-efficient asset location, but for now I'd choose the simplest option and focus on your savings rate.
- Mon Oct 16, 2023 1:13 pm
- Forum: Personal Investments
- Topic: Cash at Fidelity
- Replies: 19
- Views: 4314
Re: Cash at Fidelity
I try to keep two things in mind when making this kind of decision: 1. Someone is always making more interest than me. I'm never going to be number one. 2. When thinking about a delta in interest, compare it to the zero rate. In other words: Let's saying I'm comparing the SEC yield of SPAXX (4.98%) with SGOV (5.31%). SGOV's yield is 33bp higher. Now imagine we're in a low rate environment or I have a 0% checking account. My bank says, "How would you like to open a savings account with us that yields 0.33%, but has a bit of interest rate risk?" Well, it's the same question. For me, it's not worth the trouble. For you, it may be, and that's fine—I think framing it this way gets you away from the feeling of "5.31% is a high numb...
- Sun Oct 15, 2023 6:26 pm
- Forum: Personal Finance (Not Investing)
- Topic: Fidelity as a one stop shop
- Replies: 5973
- Views: 1008681
Re: Fidelity as a one stop shop
Unfortunately, my workaround is technically complicated. Fidelity still maintains an OFX server that can be accessed with just your username and password -- it totally bypasses 2FA! (So much for Fidelity's BS claims about blocking Plaid access for security reasons. Plaid used OAuth for authentication, which was many times more secure.) I use a Python library called ofxget to interface with Fidelity, and it downloads an OFX file on demand. You could theoretically automate this to download the OFX file nightly, or an any arbitrary schedule. I half expect the OFX server to get shut down at any time. It seems that Fidelity wants your data locked inside of their walled garden. Once that happens, we will thrown back to the dark ages (pre-1997) w...
- Sun Oct 15, 2023 8:56 am
- Forum: Personal Investments
- Topic: CDs leap from 5 yrs to 10 yrs.
- Replies: 14
- Views: 2564
Re: CDs leap from 5 yrs to 10 yrs.
Any reason not to use T-notes for those rungs of the ladder? Easy to buy at Schwab or Vanguard, better yields than most CDs, and available in the maturities you want.
- Sat Oct 07, 2023 6:41 pm
- Forum: Investing - Theory, News & General
- Topic: At what point does BND become attractive?
- Replies: 141
- Views: 23832
Re: At what point does BND become attractive?
Let's see, I can take no risk and get 5.3% from my MMF, or I can buy BND and get 4.9% while assuming 6 years of duration risk, meaning if rates keep going up I lose 6% of my money for every 1% increase. Wonder which one I'll choose... No risk? How about the risk that rates drop on MMF's? It feels different, right? I know that my expected return in BND is higher over a six-year period than putting money in my MMF, because I'm taking credit risk and interest rate risk with BND. The MMF only has one kind of risk: reinvestment risk. I think for many investors, reinvestment risk doesn't feel like a real risk because you never see your nominal balance go down. On the other hand, if Johm22122 is saying, "I take my risk on the equity side and...