Search found 6078 matches

by delamer
Tue Oct 16, 2018 8:30 pm
Forum: Investing - Help with Personal Investments
Topic: Using Target Date Funds as Buckets
Replies: 3
Views: 258

Re: Using Target Date Funds as Buckets

My understanding of the bucket approach is that the third bucket is all equities. (First bucket is cash equivalents and second is bonds.)

And the 2030 Target Date fund has some bonds.

So why not just use a US stock market fund and an International stock market fund in your Roth?
by delamer
Tue Oct 16, 2018 5:05 pm
Forum: Investing - Help with Personal Investments
Topic: What does having bond ETF in Tax Advantaged accounts mean?
Replies: 2
Views: 201

Re: What does having bond ETF in Tax Advantaged accounts mean?

In a taxable account, interest on bonds is taxed at ordinary income rates. In a taxable account, most stock dividends are taxed as long-term capital gains. Those tax rates are lower than ordinary income tax rates. Therefore, it is better to hold bonds in your 401(k), where there are no taxes due unt...
by delamer
Tue Oct 16, 2018 4:59 pm
Forum: Investing - Help with Personal Investments
Topic: International Fund Down - What to do?
Replies: 36
Views: 2037

Re: International Fund Down - What to do?

You would be selling your US fund to buy the International fund. Let's say your IPS calls for a 60/40 US/International split and right now you're sitting at 65/35, you'd sell enough of your US fund and use the proceeds to buy more of the International fund to get back to 60/40. I think I want to st...
by delamer
Tue Oct 16, 2018 4:54 pm
Forum: Investing - Help with Personal Investments
Topic: Transferring $1.2 Mil taxable to Vanguard
Replies: 10
Views: 1360

Re: Transferring $1.2 Mil taxable to Vanguard

You didn't say how many positions you have in the taxable account, but you will have "Flagship" status at Vanguard and therefore 25 free trades a yearfor stocks. After 25 trades, about $2 per trade for stocks. Most ETFs will be free. Check with Vanguard for the cost of liquidating non-etf mutual fu...
by delamer
Tue Oct 16, 2018 4:50 pm
Forum: Investing - Help with Personal Investments
Topic: 30 y/o Boglehead student, advice for 65 year old Retiring Father
Replies: 19
Views: 1680

Re: 30 y/o Boglehead student, advice for 65 year old Retiring Father

If your parents really are uninterested in dealing with investments, then they could use the Vanguard Conservative Growth LifeStrategy Fund rather than a 3 or 4 fund portfolio: https://investor.vanguard.com/mutual-funds/lifestrategy/#/mini/overview/0724 But before making any decisions, they should d...
by delamer
Tue Oct 16, 2018 4:32 pm
Forum: Investing - Help with Personal Investments
Topic: Transferring $1.2 Mil taxable to Vanguard
Replies: 10
Views: 1360

Re: Transferring $1.2 Mil taxable to Vanguard

Make sure you have cost basis information for all your investments before you do any transferring (or selling). Once you leave your current advisor, he has no incentive to cooperate with you in providing that information. Hopefully, it is available on your account statements. I don’t see any harm in...
by delamer
Tue Oct 16, 2018 3:59 pm
Forum: Investing - Help with Personal Investments
Topic: Adding significant contribution to grandson's Utah 529
Replies: 6
Views: 493

Re: Adding significant contribution to grandson's Utah 529

Given your grandson’s age and all the other assets you have available, I’d get rid of the bond funds and put that money into the Total Stock fund. If you do want to keep some bonds, stick with the Vanguard Total Bond. But 4 is excessive. You already have smaller caps in the Total Stock fund. I would...
by delamer
Tue Oct 16, 2018 1:04 pm
Forum: Investing - Theory, News & General
Topic: Rich, Broke or Dead: Visualizing probabilities of outcomes in early retirement
Replies: 105
Views: 11837

Re: Rich, Broke or Dead: Visualizing probabilities of outcomes in early retirement

I am not quite sure. I believe I am content with my lifestyle and with my current spending.. Perhaps, it is psychological? The habits of savings and frugality become well ingrained over the course of a lifetime. An example — we have been staying at Hampton Inns when we travel for years. There is ab...
by delamer
Tue Oct 16, 2018 10:46 am
Forum: Investing - Theory, News & General
Topic: Monthly vs. Annual Withdrawals
Replies: 15
Views: 1026

Re: Monthly vs. Annual Withdrawals

But if you do an annual withdrawal, don’t you have to take all the money out at the beginning of the year to pay your monthly bills?

EDIT: sport and I are thinking alike on this
by delamer
Tue Oct 16, 2018 10:34 am
Forum: Investing - Theory, News & General
Topic: Rich, Broke or Dead: Visualizing probabilities of outcomes in early retirement
Replies: 105
Views: 11837

Re: Rich, Broke or Dead: Visualizing probabilities of outcomes in early retirement

It seems like WHEN you give money to your children matters alot in the concerns that some people have about reducing their motivation. If as teenagers they know that they will receive money, that is very different from getting money later in life after they have become hopefully self-sufficient. Ho...
by delamer
Mon Oct 15, 2018 10:10 pm
Forum: Personal Finance (Not Investing)
Topic: Gift for two of four grandchildren
Replies: 18
Views: 2108

Re: Gift for two of four grandchildren

The grandmother can open a UTMA for each grandchild. She can fund each account with $25K. While she will need to file a form with her 2018 taxes reporting the gift, there will be no tax consequence for 2018. (If the gift was $15,000 or less than she wouldn’t need to file the form.) The only possibil...
by delamer
Mon Oct 15, 2018 9:57 pm
Forum: Investing - Help with Personal Investments
Topic: checking/sharing my learning - Basics of investing
Replies: 6
Views: 618

Re: checking/sharing my learning - Basics of investing

It doesn't make sense to maintain your checking account by buying/selling equities. You should buy enough that you don't need to sell when income is low. You shouldn't really sell equities until retirement if that is what the funds are for. Ok, thank you, I will definitely keep that in mind. Stocks...
by delamer
Mon Oct 15, 2018 8:11 pm
Forum: Investing - Help with Personal Investments
Topic: Assets Allocation
Replies: 3
Views: 338

Re: Assets Allocation

Generally people here give advice on allocation based on your goal for the money.

For instance, your allocation for retirement funds to be used in 25 years should be different than your allocation for colllege funds to be used in 8 years.
by delamer
Mon Oct 15, 2018 7:16 pm
Forum: Personal Finance (Not Investing)
Topic: When to stop putting money into an older vehicle
Replies: 88
Views: 5711

Re: When to stop putting money into an older vehicle

I'd like to point out that safety in newer vehicles isn't just about autonomous features like automatic braking. The actual crash tests have gotten more stringent, and a lot of even slightly older cars do quite poorly. For example, here are the IIHS crash test results for Camrys, starting from 2003...
by delamer
Mon Oct 15, 2018 6:55 pm
Forum: Personal Consumer Issues
Topic: trip to Grand Cayman & dieting [while on vacation]
Replies: 40
Views: 2556

Re: trip to Grand Cayman & dieting

My best advice is to use the good weather and pleasant surroundings to up your activity level, rather than worrying too much about your food consumption.

We go on cruises fairly often, and that works for me.

For instance, we always go for a mile walk on the Promenade Deck after dinner.
by delamer
Mon Oct 15, 2018 5:42 pm
Forum: Personal Finance (Not Investing)
Topic: Mortgage Comparison (Builder's Credit)
Replies: 3
Views: 273

Re: Mortgage Comparison (Builder's Credit)

Just to be clear, the breakeven point means that as long as you keep the loan for 4 years, the lower rate loan is the better deal?

If so, then the likely length of the loan seems to be your decision point.
by delamer
Mon Oct 15, 2018 5:31 pm
Forum: Personal Finance (Not Investing)
Topic: Placing mother in nursing home - advice
Replies: 37
Views: 3698

Re: Placing mother in nursing home - advice

We have a situation where my sister has been a full-time caretaker for my mother, who is in her 80's, disabled and in a wheelchair, and needs catheterizing, help preparing meals, etc. My sister's son recently had a baby, and my sister is adamant about putting my mother in a nursing home, moving to ...
by delamer
Mon Oct 15, 2018 5:17 pm
Forum: Personal Finance (Not Investing)
Topic: When to stop putting money into an older vehicle
Replies: 88
Views: 5711

Re: When to stop putting money into an older vehicle

First, I would not drive a 15 year old vehicle. There have been too many safety improvements in the intervening years. This! I would not drive a car that old, and would probably replace a vehicle that is say 10 or so years old with newer. I worry that even though the vehicle may be reliable I'll mi...
by delamer
Sun Oct 14, 2018 10:16 pm
Forum: Investing - Help with Personal Investments
Topic: Need Assistance for Pre-retirement Planning
Replies: 5
Views: 588

Re: Need Assistance for Pre-retirement Planning

Let’s assume you’ll have about $3.5 million (in today’s dollars) at 59. You can safely withdraw 4% of that portfolio as long as you keep at least 40% or so in stocks. But you’ll need less from the portfolio to meet your expenses once you begin taking Social Security. So basically, if your expenses a...
by delamer
Sun Oct 14, 2018 7:01 pm
Forum: Investing - Help with Personal Investments
Topic: Determining capital gains?
Replies: 16
Views: 407

Re: Determining capital gains?

Your cost basis is the sum of any money you used to purchase shares plus the amount of any reinvested dividends.

The difference between your cost basis and what you sell your shares for is the capital gain.
by delamer
Sun Oct 14, 2018 6:57 pm
Forum: Personal Finance (Not Investing)
Topic: Trying to get a Federal Job
Replies: 22
Views: 2900

Re: Trying to get a Federal Job

Yes, less of your annuity will be taxable when you have to contribute more. But you are stuck with 4.8% regardless, so comparisons to options that aren’t available aren’t really relevant. I agree - I've just seen a lot of comments say it's not worth going into federal employment anymore specificall...
by delamer
Sun Oct 14, 2018 6:54 pm
Forum: Investing - Help with Personal Investments
Topic: Determining capital gains?
Replies: 16
Views: 407

Re: Determining capital gains?

thefoggycity wrote:
Sun Oct 14, 2018 6:39 pm
I know the total gain, would that help determine?
Not necessarily.

Is there a dollar figure on your account statement that says “unrealized capital gains?”

Or possibly “total cost?”
by delamer
Sun Oct 14, 2018 6:33 pm
Forum: Investing - Help with Personal Investments
Topic: Determining capital gains?
Replies: 16
Views: 407

Re: Determining capital gains?

Do you know the cost basis for the shares you are selling?

That’s the key.
by delamer
Sun Oct 14, 2018 4:08 pm
Forum: Personal Finance (Not Investing)
Topic: Online Masters in Education?
Replies: 9
Views: 336

Re: Online Masters in Education?

Since she obviously has some contacts in the local schools, I’d get some objective opinions on the likelihood of her being hired with a University of Phoenix degree. There is a lot skepticism about the value of degrees from for-profit schools. Better to find out before she starts if the degree will ...
by delamer
Sun Oct 14, 2018 4:01 pm
Forum: Personal Finance (Not Investing)
Topic: Trying to get a Federal Job
Replies: 22
Views: 2900

Re: Trying to get a Federal Job

Yes, less of your annuity will be taxable when you have to contribute more. But you are stuck with 4.8% regardless, so comparisons to options that aren’t available aren’t really relevant. I agree - I've just seen a lot of comments say it's not worth going into federal employment anymore specificall...
by delamer
Sun Oct 14, 2018 3:49 pm
Forum: Personal Finance (Not Investing)
Topic: Online Masters in Education?
Replies: 9
Views: 336

Re: Online Masters in Education?

I am assuming that your wife does not have an undergrad teaching degree. My understanding is that education degrees require student teaching, if you are not or have not been a teacher. I imagine that the student teaching must be completed within some specific time frame after the course work is fini...
by delamer
Sun Oct 14, 2018 3:42 pm
Forum: Personal Finance (Not Investing)
Topic: Placing mother in nursing home - advice
Replies: 37
Views: 3698

Re: Placing mother in nursing home - advice

The county government where your mother lives should have an Office for the Aging or something similarly titled.

That should be a good source of basic information on services and resources available to figure out options for your mother.

Best of luck.
by delamer
Sun Oct 14, 2018 3:31 pm
Forum: Personal Finance (Not Investing)
Topic: Trying to get a Federal Job
Replies: 22
Views: 2900

Re: Trying to get a Federal Job

I have no direct experience with the TSA or excepted service. But in the competitive service, you can indeed start at a higher grade with more education, at least in some jobs. However, you don’t get an automatic bump up in grade if you get an advanced degree once you are already employed. In the jo...
by delamer
Sun Oct 14, 2018 2:12 pm
Forum: Personal Finance (Not Investing)
Topic: When to stop putting money into an older vehicle
Replies: 88
Views: 5711

Re: When to stop putting money into an older vehicle

Thanks for the replies so far. I want to add: 1. I just got tires over the summer and paid $400. I previously replaced them 3 years earlier. 2. I pay for oil changes 2-3 times a year. 3. I paid about $450 last year to replace the timing belt. So even factoring in the $1700 repair, it has been relat...
by delamer
Sun Oct 14, 2018 1:55 pm
Forum: Personal Finance (Not Investing)
Topic: When to stop putting money into an older vehicle
Replies: 88
Views: 5711

Re: When to stop putting money into an older vehicle

First, I would not drive a 15 year old vehicle. There have been too many safety improvements in the intervening years. When I have had to make a similar decision, I always check the value of the vehicle as a trade-in. If the vehicle is worth $8,000, I’d probably do a $1,000 repair. If the vehicle is...
by delamer
Sun Oct 14, 2018 1:47 pm
Forum: Personal Finance (Not Investing)
Topic: Buy car cash or take low rate loan
Replies: 33
Views: 1799

Re: Buy car cash or take low rate loan

soloekahi wrote:
Sun Oct 14, 2018 1:18 pm
Thanks all. No issues at all with liquidity. It’s a small hassle but $300 a year is still $300 extra. I live my life by nickel and diming everything so every $1 counts.
If you truly live you lfe by nickel and diming everything, then find a less expensive used truck that meets your needs.
by delamer
Sun Oct 14, 2018 11:15 am
Forum: Investing - Help with Personal Investments
Topic: Vanguard Retirement funds
Replies: 5
Views: 652

Re: Vanguard Retirement funds

It is important that you understand that by moving from the 2020 fund to the 2025 fund, you will be increasing your stock exposure from about 53% to 63% for your investment. This chart has the specifics: https://institutional.vanguard.com/VGApp/iip/site/institutional/investments/portfoliodetails?fun...
by delamer
Sun Oct 14, 2018 10:52 am
Forum: Investing - Help with Personal Investments
Topic: Idiotic questions from NEWB- please help
Replies: 14
Views: 1322

Re: Idiotic questions from NEWB- please help

To set up a taxable account at Vanguard, you will open a brokerage account. Assuming you’re single, the account will be in your name. You can then invest in whatever Vanguard funds/ETFs (or any other company’s) you’d like. (There used to be another type of taxable account if you only wanted to inves...
by delamer
Sun Oct 14, 2018 10:31 am
Forum: Personal Consumer Issues
Topic: Anyone here major in Economics in college?
Replies: 68
Views: 3798

Re: Anyone here major in Economics in college?

Econ? No Finance undergrad a bit better. Currently, outside of doctors, the best path for employment and income I see is engineer undergrad then MBA. The most highly paid person I know is a PhD economist who does testimony in court cases. I wonder just how many of those job opportunities are out th...
by delamer
Sat Oct 13, 2018 9:19 pm
Forum: Personal Consumer Issues
Topic: Anyone here major in Economics in college?
Replies: 68
Views: 3798

Re: Anyone here major in Economics in college?

five2one wrote:
Sat Oct 13, 2018 10:19 am
Econ? No
Finance undergrad a bit better.

Currently, outside of doctors, the best path for employment and income I see is engineer undergrad then MBA.
The most highly paid person I know is a PhD economist who does testimony in court cases.
by delamer
Sat Oct 13, 2018 9:04 pm
Forum: Investing - Help with Personal Investments
Topic: Please help with asset allocation - 63 yr old
Replies: 12
Views: 1366

Re: Would like to create a better portfolio

My apologies for any confusion. The reason for my post is as title implies, a review of my present portfolio and funds vs options; hence the posted information of my present fund selections. Of course, already having a Vanguard account also provides me many options. In answer to the first 3 posts, ...
by delamer
Sat Oct 13, 2018 6:21 pm
Forum: Investing - Help with Personal Investments
Topic: Please help with asset allocation - 63 yr old
Replies: 12
Views: 1366

Re: How Am I Doing? 63 Yrs Young

You certainly have a high savings rate as a percent of income. To give you better advice, there are a few more things that would be good to know. When do you want to retire? How much income will you need to live comfortably? Do you have an estimate of your Social Security benefits? Keep this in mind...
by delamer
Sat Oct 13, 2018 6:07 pm
Forum: Personal Finance (Not Investing)
Topic: Bank lost beneficiary paperwork, says must go through probate
Replies: 18
Views: 2487

Re: Bank lost beneficiary paperwork, says must go through probate

Similar problem occurred in my family. A relative thought his TSP account named a beneficiary. TSP said did not have a record of it. Resulted in several $100K of taxable income for his heir. TSP is a tax differed savings plan so heirs always will pay tax on the drawn out income. Do you mean the rel...
by delamer
Sat Oct 13, 2018 5:54 pm
Forum: Investing - Help with Personal Investments
Topic: 56-year-old beginning the Boglehead journey - tax efficiency question
Replies: 7
Views: 1027

Re: 56-year-old beginning the Boglehead journey - tax efficiency question

OK, thanks your responses. My 401-K is very limited in terms of Bonds. Any ideas of which is preferred? Below are my Bond choices: * Templeton Global Bond Fund Class R6 - FBNRX * JPMorgan Core Plus Bond Fund Class R6 - JCPUX * Fidelity® U.S. Bond Index Fund - Institutional Premium Class - FXNAX I a...
by delamer
Sat Oct 13, 2018 5:02 pm
Forum: Investing - Help with Personal Investments
Topic: Invest in target date fund or do myself? Poor return Schwab Private Client
Replies: 22
Views: 2117

Re: Invest in target date fund or do myself? Poor return Schwab Private Client

You could implement one of these portfolios on your own: https://www.bogleheads.org/wiki/Lazy_portfolios

However, you should be considering your overall risk tolerance and make your decisions keeping in mind your husband’s portfolio.
by delamer
Sat Oct 13, 2018 4:39 pm
Forum: Investing - Help with Personal Investments
Topic: Help with asset allocation for a retired 65 yo?
Replies: 5
Views: 742

Re: Help with asset allocation for a retired 65 yo?

The Bogleheads’ wiki has some suggested “lazy portfolios” which are based on low-cost, index funds: https://www.bogleheads.org/wiki/Lazy_portfolios This should give you some ideas on good options at Vanguard. The biggest decision for you will be your asset allocation. Do you have a feel for your rew...
by delamer
Sat Oct 13, 2018 4:23 pm
Forum: Personal Finance (Not Investing)
Topic: Neighbor discussing finances with me
Replies: 64
Views: 5864

Re: Neighbor discussing finances with me

If your friend had asked for your opinion on investing in general or on the bond fund in particular, then I’d suggest gifting him one of the Boglehead investing books. But it sounds like this was just a casual conversation, so I’d drop it. I do sympathize though. I have a couple friends who are doin...
by delamer
Sat Oct 13, 2018 4:02 pm
Forum: Personal Finance (Not Investing)
Topic: Weigh in on our Marital Argument =)-- HCOL edition
Replies: 70
Views: 5328

Re: Weigh in on our Marital Argument =)-- HCOL edition

Why is it so hard for the kids to give up their bedroom to their grandparents for a few weeks? I don't see why this should disturb their sleep so much. Based on what the OP described, the kids are probably moved to a sofa bed in the main living area that adjoins the kitchen. Not exactly quiet. And ...
by delamer
Sat Oct 13, 2018 3:58 pm
Forum: Investing - Theory, News & General
Topic: Does anyone consider institutional risk?
Replies: 37
Views: 2071

Re: Does anyone consider institutional risk?

We have a large amount of cash set aside for a downpayment on a 2nd home. Let’s say we are going to settlement on Tuesday. And all of our money is at one financial institution that is hacked on Monday, so that our accounts are frozen. No settlement. But if we have our assets spread across a couple ...
by delamer
Sat Oct 13, 2018 2:48 pm
Forum: Investing - Help with Personal Investments
Topic: Idiotic questions from NEWB- please help
Replies: 14
Views: 1322

Re: Idiotic questions from NEWB- please help

I agree with the previous advice. Regarding #4, if you hold onto the stocks you bought for a full year and then sell them, you will pay tax on any gains at the long-term capital gains rate. This is lower than the ordinary income tax rate, which is what you’ll pay if you sell them before the year is ...
by delamer
Sat Oct 13, 2018 2:35 pm
Forum: Personal Finance (Not Investing)
Topic: Weigh in on our Marital Argument =)-- HCOL edition
Replies: 70
Views: 5328

Re: Weigh in on our Marital Argument =)-- HCOL edition

Other questions people have asked: why do we let our parents stay with us? Well, we are 1st gen Asian immigrants (me as a kid, husband as a teen) with parents who lived in near poverty to save to send us to college. In Asian culture, it’s a grave insult to ask elderly parents to stay somewhere else...
by delamer
Sat Oct 13, 2018 2:21 pm
Forum: Personal Finance (Not Investing)
Topic: Is it worth filing FAFSA even if you know you'll get nothing?
Replies: 70
Views: 4813

Re: Is it worth filing FAFSA even if you know you'll get nothing?

Some schools require that you file FAFSA for an entering first year if you might EVER need aid. A good friend of my daughter (they both attended Bryn Mawr) did not file FAFSA because her family was sure she would never need financial assistance. Her parent died unexpectedly during her first year, h...
by delamer
Sat Oct 13, 2018 2:14 pm
Forum: Investing - Theory, News & General
Topic: Does anyone consider institutional risk?
Replies: 37
Views: 2071

Re: Does anyone consider institutional risk?

Actually, I don’t worry about permanent loss of funds. My concern is not having access to my funds when I need them. Fair enough, but I struggle to come up with such a situation for myself. I have credit cards, family, friends... all could tide me over for a week or two. I also have a job, since I ...
by delamer
Sat Oct 13, 2018 1:20 pm
Forum: Investing - Theory, News & General
Topic: Does anyone consider institutional risk?
Replies: 37
Views: 2071

Re: Does anyone consider institutional risk?

I make no claim to being a cyber security expert. However, my guess is that if you surveyed a bunch of them that they would say that the chance of some major financial institution’s computer systems being hacked is much greater than infinitesimal. Even if that's true (and I'm not convinced it is) i...
by delamer
Sat Oct 13, 2018 1:20 pm
Forum: Investing - Theory, News & General
Topic: Does anyone consider institutional risk?
Replies: 37
Views: 2071

Re: Does anyone consider institutional risk?

Anybody deliberately use different investment firms to lower "institutional risk," or is it not worth consideration? We all know that Vanguard and other mutual fund firms are not covered by any SIPC or other insurance, so, are there real risks to customers assets such as fraud, bankruptcy, or other...