Search found 412 matches

by floydtime
Sat Dec 16, 2023 9:00 pm
Forum: Investing - Theory, News & General
Topic: Taxable accounts more tax-friendly at withdrawal time?
Replies: 56
Views: 26253

Re: Taxable accounts more tax-friendly at withdrawal time?

I fully recognize the advantage of tax-deferred accounts (over taxable) when investing, especially with tax-inefficient investments. However, isn't it true that **at the time when assets are sold/withdrawn**, that the proceeds(profits) from a taxable account are going to (usually?) be taxed at a better/lower rate than the proceeds from a tax-deferred account? The comparison is: A. Earnings -> Ordinary Income Taxes -> Growth minus Annual Tax Drag -> LTCG on withdrawal B. Earnings -> Growth -> Ordinary Income Taxes on withdrawal Assuming the same or lower tax bracket in retirement than when earning, and considering the commutative property of multiplication, it is mathematically impossible for (A) to be larger than (B). I absolutely agree, i...
by floydtime
Sat Dec 16, 2023 2:48 pm
Forum: Investing - Theory, News & General
Topic: Taxable accounts more tax-friendly at withdrawal time?
Replies: 56
Views: 26253

Re: Taxable accounts more tax-friendly at withdrawal time?

Thanks all for verifying my understanding is as I thought -- I appreciate the input. Regarding implied concern that I was misunderstanding the value of tax-deferred (or better, i.e. HSA or Roth), this was merely an academic question. I have some of all of these (types of) accounts and appreciate having the future (and past and present) flexibility.
by floydtime
Sat Dec 16, 2023 1:53 pm
Forum: Investing - Theory, News & General
Topic: Taxable accounts more tax-friendly at withdrawal time?
Replies: 56
Views: 26253

Taxable accounts more tax-friendly at withdrawal time?

I was thinking about this this morning and thought I would run it by the forum as a sanity check... I fully recognize the advantage of tax-deferred accounts (over taxable) when investing, especially with tax-inefficient investments. However, isn't it true that **at the time when assets are sold/withdrawn**, that the proceeds(profits) from a taxable account are going to (usually?) be taxed at a better/lower rate than the proceeds from a tax-deferred account? For example, stocks long held in a taxable account will be hit with (generally lower) capital gains taxes, while stocks long held in a tax-deferred account will be hit with (generally higher) income taxes. I don't know that this changes anything, but I'm more looking at my existing inves...
by floydtime
Fri Jun 24, 2016 3:32 pm
Forum: Personal Investments
Topic: Different brokerages too messy for Roth conversions?
Replies: 4
Views: 507

Re: Different brokerages too messy for Roth conversions?

Thank you both so much. Creating new Roths at Fidelity sounds like the way to go - not sure why that hadn't occurred to me. pkcrafter, can you expand a little bit on the following?...

>>Don't mix annual conversions because the five year rule applies to each conversion.

When you say "mix" do you mean do one and only one per year (i.e. 2016, say, do one into my Roth. 2017, do one into my wife's Roth. and so on)?

Thanks again!
by floydtime
Fri Jun 24, 2016 3:11 pm
Forum: Personal Investments
Topic: Different brokerages too messy for Roth conversions?
Replies: 4
Views: 507

Different brokerages too messy for Roth conversions?

I'm no longer working, but still years from being on SS. My wife is also not working. For unrelated reasons, we'll need to show some taxable income this year. I am thinking about starting to do an annual "rollover" (incorrect terminology?) from my 401k into our Roths. This will allow me to control "income", and also avoid/soften the RMD later on. Nothing new here (I think). Question - my 401k is at Fidelity, but our Roths and all other investments are at Vanguard. It really looks like these "rollovers" would be MUCH less of a hassle if both my 401k/IRA, and, our Roth IRAs, were at the same brokerage (i.e. both at Vanguard). Is it worth first doing a complete rollover of my Fidelity 401k into a Vanguard traditio...
by floydtime
Sat Feb 13, 2016 12:10 pm
Forum: Personal Finance (Not Investing)
Topic: Roth Conversion (can I count the withdrawal against 2015?)
Replies: 17
Views: 1404

Re: Roth Conversion (can I count the withdrawal against 2015?)

Great points, all. Thanks again. I think I will run with it.
by floydtime
Sat Feb 13, 2016 8:48 am
Forum: Personal Finance (Not Investing)
Topic: Roth Conversion (can I count the withdrawal against 2015?)
Replies: 17
Views: 1404

Re: Roth Conversion (can I count the withdrawal against 2015?)

Thank you JoeJohnson! As with so much else regarding the ACA, it's still kind of vague. It says if I "want to cover them on my Marketplace plan", which sounds like it's talking about the future (as in 2016). But I don't want to...she is on her own plan for the first time now, in 2016. She WAS on our plan in 2015. As much as I'd like to trust that it means what is common sense (that she WAS on our plan in 2015, which is the tax situation we're talking about), I'm not so sure from the verbage. After much searching, I found the following -> https://www.healthinsurance.org/faqs/we-claim-our-son-but-not-our-daughter-on-our-taxes-how-are-premium-subsidies-calculated-for-families-like-ours/ which states... Your [adult non-dependent 23-ye...
by floydtime
Sat Feb 13, 2016 8:07 am
Forum: Personal Finance (Not Investing)
Topic: Roth Conversion (can I count the withdrawal against 2015?)
Replies: 17
Views: 1404

Re: Roth Conversion (can I count the withdrawal against 2015?)

She is 19 and last year she was under our healthcare and living at home for the entire year - she moved out in January. In previous years (2014, 2013...) she filed her own return, but she was still our dependent on our return. There is a checkbox on 1040's that asks if you are a dependent on someone else's return (e.g. her parents' return). She has always checked this. She asked if she should check it again this year (for 2015), and I looked at the rules which appeared quite vague (to me anyway) and said, it's up to you. Now I'll just tell her to check it. Again, she lived with us and she was on our health plan and she ate our food and used the laundry. (yes, that last is a joke ;) ). >>I am not up to speed on the ACA, but I suppose it is p...
by floydtime
Fri Feb 12, 2016 9:31 pm
Forum: Personal Finance (Not Investing)
Topic: Roth Conversion (can I count the withdrawal against 2015?)
Replies: 17
Views: 1404

Re: Roth Conversion (can I count the withdrawal against 2015?)

That is correct. The entire household's income is added up, whether or not they are on the same return. My younger son had some income last year, and the tax software asks for it explicitly (for the ACA portion) even though this isn't his return.
by floydtime
Fri Feb 12, 2016 7:25 pm
Forum: Personal Finance (Not Investing)
Topic: Roth Conversion (can I count the withdrawal against 2015?)
Replies: 17
Views: 1404

Re: Roth Conversion (can I count the withdrawal against 2015?)

Thanks again. To be clear, if I add my daughter as a dependent, our household income will increase since she has a 2015 MAGI of about 14k. Now the reason I want to increase this is because of the ACA. Without my daughter included, we have a household size of 3 , and a combined MAGI of about 17k. We live in a state (VA) that has NOT expanded Medicaid, so according to https://www.healthcare.gov/lower-costs/ , our household needs to have "made" at least $20,160 to qualify for premium assistance. If I add my daughter as a dependent (which given the vague rules for a dependent, she can still be claimed as), then our household size increases to 4 , and the goal becomes $24,300. But we're still okay since she made more than enough to cov...
by floydtime
Fri Feb 12, 2016 6:44 pm
Forum: Personal Finance (Not Investing)
Topic: Roth Conversion (can I count the withdrawal against 2015?)
Replies: 17
Views: 1404

Re: Roth Conversion (can I count the withdrawal against 2015?)

Thanks so much. Okay, next question...is there any way to add to our household income (household MAGI I guess you'd call it) from last year? <I do have one way, which is to claim my oldest child as a dependent for one more year - she did live with us after all - but I'd like to know if there is another way>
by floydtime
Fri Feb 12, 2016 4:55 pm
Forum: Personal Finance (Not Investing)
Topic: Roth Conversion (can I count the withdrawal against 2015?)
Replies: 17
Views: 1404

Roth Conversion (can I count the withdrawal against 2015?)

Subject says it all. If I do a small conversion from my 401k to my Roth IRA now, can I count the "income" (coming out of my 401k) as 2015 income? If done before April 15?

I looked and looked at the many Roth Conversion threads, but didn't see this explicitly stated one way or the other.

Thanks!
by floydtime
Tue Feb 11, 2014 1:23 pm
Forum: Personal Finance (Not Investing)
Topic: Signed up for healthcare on exchange - no subsidy mentioned
Replies: 14
Views: 1751

Re: Signed up for healthcare on exchange - no subsidy mentio

Following up as promised...

I got signed up just fine after putting in that my kids were denied CHIP coverage. Proof is not required on the US exchange site (however, I did apply for CHIP anyway, just in case a rejection letter is needed later on).
by floydtime
Mon Feb 10, 2014 3:13 pm
Forum: Personal Finance (Not Investing)
Topic: Signed up for healthcare on exchange - no subsidy mentioned
Replies: 14
Views: 1751

Re: Signed up for healthcare on exchange - no subsidy mentio

Good to know, snowman, thanks! I'll try it and see what happens and report back. It will have to wait until tomorrow though - too tired to continue for today. :)
by floydtime
Mon Feb 10, 2014 3:01 pm
Forum: Personal Finance (Not Investing)
Topic: Signed up for healthcare on exchange - no subsidy mentioned
Replies: 14
Views: 1751

Re: Signed up for healthcare on exchange - no subsidy mentio

Thanks all.

BruDude, the application now asks specifically if the kids were denied CHIP coverage, so if you say yes, I presume everything will work.

I'm considering just answering that question YES anyway (since I know they will be denied, since my income will be above that cutoff for VA (143% of poverty level)).
by floydtime
Mon Feb 10, 2014 2:44 pm
Forum: Personal Finance (Not Investing)
Topic: Signed up for healthcare on exchange - no subsidy mentioned
Replies: 14
Views: 1751

Re: Signed up for healthcare on exchange - no subsidy mentio

Thanks snowman, that helps. I am getting closer. My question has morphed somewhat...

Now I've finally gotten it to say, yes, I do get a subsidy (yay!), and I tell it that I do not want any up front, but just give it to me at tax time.

BUT, it only lets my wife and I sign up. Our (two) kids are left out and the Eligibility form says that our kids are not eligible, but may be eligible for Medicaid CHIP. It provides me no way to enroll in the insurance we want for the entire family - only my wife and I. Do you think I need to get my kids officially "rejected" from Medicaid CHIP (similar to what you mentioned below regarding Medicaid in general)? Anybody else run into this?
by floydtime
Mon Feb 10, 2014 11:29 am
Forum: Personal Finance (Not Investing)
Topic: Signed up for healthcare on exchange - no subsidy mentioned
Replies: 14
Views: 1751

Re: Signed up for healthcare on exchange - no subsidy mentio

Did you choose a Silver plan? That may be a factor. From the site: " Out-of-pocket savings apply only to Silver plans Plans in the Marketplace are separated into 4 different categories: Bronze, Silver, Gold, and Platinum. These categories are based on how much of your medical costs you pay and how much the plan pays when you get medical care. They are not based on plan quality. Learn more about plan categories and what they mean. If you qualify for out-of-pocket savings, you must choose a Silver plan to get the savings . If you qualify for these savings, you'll get the out-of-pocket savings benefits of a Gold or Platinum plan for a Silver plan price. You can choose any category of plan, but you'll get the out-of-pocket savings only if...
by floydtime
Mon Feb 10, 2014 9:51 am
Forum: Personal Finance (Not Investing)
Topic: Signed up for healthcare on exchange - no subsidy mentioned
Replies: 14
Views: 1751

Signed up for healthcare on exchange - no subsidy mentioned

Hi all, I am doing early retirement this month (yay), and so signed up for healthcare on the Federal exchange (deadline is Feb. 15 for coverage starting March 1). I'm in Virginia, so had to use the Federal site. I answered all of the questions, including things like "current income" (high), and "expected income this year" (between 100%-200% of FPL). Even questions like, are you losing coverage this year (yes) and will you sign up for Cobra (no). What I * expected * to happen was for the sign up to give me the option to receive my Premium Subsidy ahead of time, OR, pay out of pocket, and have my subsidy paid to me at tax time next year. I was going to choose the latter. What * actually * happened was that it just took me ...
by floydtime
Tue Feb 04, 2014 8:05 am
Forum: Personal Consumer Issues
Topic: Movie night in recommendations
Replies: 269
Views: 29287

Re: Movie night in recommendations

VictoriaF wrote:
JupiterJones wrote:When I saw this, I thought of this thread. :D

Our local art house cinema is showing the entire "Before" trilogy in one sitting:

http://www.belcourt.org/events/celine-a ... ogy.716921

They even have a dining option where they, appropriately, serve you Parisian food & wine before "Before Sunset" and Mediterranean snacks before "Before Midnight". :beer

Tempted to go...
If I were in Nashville, I'd go. Parisian food and wine will give you a new angle.

Victoria
Yeah, my wife and I would totally go to that if we were closer to Nashville.

For fans only, here's an interesting little interview on the making/philosophy of the films - https://www.youtube.com/watch?v=wlOM8WnBafU
by floydtime
Mon Feb 03, 2014 3:27 pm
Forum: Investing - Theory, News & General
Topic: U.S. stocks in free fall
Replies: 36221
Views: 4651668

Re: U.S. stocks in freefall

Bustoff wrote:Wake me up when Total Bond Market recovers it losses.
TBM has losses? I must be in a different TBM fund.
by floydtime
Thu Jan 09, 2014 8:38 am
Forum: Personal Consumer Issues
Topic: Movie night in recommendations
Replies: 269
Views: 29287

Re: Movie night in recommendations

I'm really glad other people got as much out of these movies as I did. I'm not sure why that matters, but it does. :beer

Yeah, the dinner dialogue was just so real and vibrant. For me it was the end of the hotel room scene that grabbed me the most, when she finally walked out for the last time, and he realized she wasn't going to come back, and he was looking at the empty bed, the full wineglasses, the walls...it captured the feeling almost too well.

Fourth movie? I guess following the pattern it would be...Before Noon? Or maybe start the cycle in reverse and go with After Midnight, then After Sunset, and finally After Sunrise?
by floydtime
Thu Jan 09, 2014 8:30 am
Forum: Personal Consumer Issues
Topic: Europe solo at 50?
Replies: 59
Views: 6143

Re: Europe solo at 50?

My real question is how does one keep possessions secure in a hostel, ie financial, phone, passport, and other items when traveling solo? That would be my primary concern. My plan (and my practice in the past) is to travel ridiculously light. As in, if my stuff isn't a backpack small enough to be comfortable all day long , then I have too much stuff. It would be with me when I go to the bathroom, when I'm on a train or a plane, when I go to a restaurant/store/museum/etc., and when I go to bed (as a pillow). The only time it would not be with me is when there is a locker I trust (I have my own combo lock when needed). I'd also keep a money belt with PP, credit card, cash, IDs, etc.). And a tip that Rick Steves had which I liked is to always...
by floydtime
Wed Jan 08, 2014 4:47 pm
Forum: Personal Consumer Issues
Topic: Europe solo at 50?
Replies: 59
Views: 6143

Re: Europe solo at 50?

Wow, what great advice and encouragement - thanks everybody! A few specific replies... P.S. I just saw your message in a different thread that you've watched "Before Sunrise," "Before Sunset," and "Before Midnight." While you may not have the same adventure, the films do provide a sense of what it is like roaming through Europe. Great minds think alike. :) Yes, those movies (particularly the last one, which just came out last year) brought this years-old European travel dream back to the surface. And now I can actually afford to do it! El Camino de Santiago - for someone who loves to walk, I love the sound of this. Have you walked parts of it before? Which of the "ways" do you recommend? Don't forget ...
by floydtime
Wed Jan 08, 2014 3:06 pm
Forum: Personal Consumer Issues
Topic: Europe solo at 50?
Replies: 59
Views: 6143

Re: Europe solo at 50?

Thanks for the tip. I'm okay with Youth Hostels still, as I'm pretty young at heart and have good memories of staying in them, and know people older than me that still use them.

That being said, I'm looking into airbnb now. It pretty much looks like a hybrid of couchsurfing (which I won't do) and full-fledged B&B's - with an online presence. I think I like this option too. Some seem a little pricey, but I can see mixing it up with Youth Hostels, and a once-every-week-or-two stay in a nice Hotel.
by floydtime
Wed Jan 08, 2014 2:42 pm
Forum: Personal Consumer Issues
Topic: Movie night in recommendations
Replies: 269
Views: 29287

Re: Movie night in recommendations

Victoria, I hope you enjoy it. Jupiter - a tip of the hat from one super fan of that film, to another. I've always had this eerie feeling, as if Linklater made his films, just specifically for *me* (as silly as that sounds). This morning I learn it's not true and that's a good thing :) BFG I've just watched Before Sunrise . It's a great film, thank you again for the recommendation! Victoria Bumping because I just saw Before Midnight (2013), which is the 3rd in this very unique trilogy. I saw the first two ( Before Sunrise (1995) and Before Sunset (2004)) years ago. Wow, just WOW. Never seen anything quite like these three movies before. They're probably not for everyone, but if these movies connect with you, they will in a very big way. Th...
by floydtime
Wed Jan 08, 2014 2:31 pm
Forum: Personal Consumer Issues
Topic: Europe solo at 50?
Replies: 59
Views: 6143

Re: Europe solo at 50?

I hear ya, MathWizard. I've been to India for business a couple of times, and totally know what you mean.

My wife and I are going together as well, probably a couple of years later, and probably every few years for as long as we're able. The solo trip is just something I've always wanted to do, and my wife is behind my doing it.
by floydtime
Wed Jan 08, 2014 2:18 pm
Forum: Personal Consumer Issues
Topic: Europe solo at 50?
Replies: 59
Views: 6143

Europe solo at 50?

I've been researching the $#!+ out of this, and then it dawned on me that Bogleheads > all, so here goes... Anybody been to Europe for an extended period of time (say, 2-3 months or longer) by yourself? If so, what did you like or dislike about it? What would you have done differently? What were the best/worst places you visited? I am considering a 2-3 month Eurail pass, and staying primarily in Youth Hostels. I don't want to do it in the peak season, but also don't want miserable weather, so probably looking at September-November or March-May. I have been to the UK and Ireland multiple times, but only to continental Europe once (Germany for 3 days, which I absolutely loved). Thanks in advance for any tips. EDIT - fyi, I am a married 48 y.o...
by floydtime
Wed Dec 11, 2013 7:58 am
Forum: Personal Finance (Not Investing)
Topic: Signing up for health care
Replies: 324
Views: 38841

Re: Signing up for health care

Pretty decent article explaining the process. The ultimate guide to buying insurance on HealthCare.gov http://www.washingtonpost.com/blogs/wonkblog/wp/2013/12/10/the-ultimate-guide-to-buying-insurance-on-healthcare-gov/ Thanks for the link - this was helpful. Sadly, it bypasses one question I am still unsure of... After account creation comes the application process. If you want the absolute easiest process, you can decide not to apply for financial assistance. Deciding not to apply for financial assistance will mean you don't answer a number of questions about how much you earn and move a bit faster to the shopping process. The downside of skipping this step is that you could miss out on a tax credit to help purchase insurance coverage. I...
by floydtime
Tue Dec 10, 2013 1:09 pm
Forum: Personal Finance (Not Investing)
Topic: Signing up for health care
Replies: 324
Views: 38841

Re: Signing up for health care

rkhusky wrote:
Jack wrote: It is unlikely that your plan has nearly doubled in price for same policy. This contradicts your previous statement about a race to the bottom. If you are paying $6000 more, you are likely getting $6000 more in benefits.
But it may be for benefits that the subscriber has no use for, like maternity and well baby visits for a 50 year old with a vasectomy.
...or guaranteed issue, and guaranteed re-issue after getting sick...
by floydtime
Wed Nov 27, 2013 10:06 am
Forum: Personal Finance (Not Investing)
Topic: Help Pick ObamaCare Plan?
Replies: 51
Views: 4263

Re: Help Pick ObamaCare Plan?

goaties wrote:There's one factor no one has mentioned yet: only the silver plans have cost reductions. That is, if your income is low enough, you will find that your copays and deductibles and Max-out-of-pockets will be reduced. And all that is in addition to the premium reduction. Since the OP hasn't told us if they will qualify for a subsidy, it's hard to tailor advice any more specifically. Try using the Kaiser subsidy calculator for a good idea of your subsidy:
http://kff.org/interactive/subsidy-calculator/
Since the above calculator only tells you how much of a *premium* subsidy you will get, is there any way to determine how much you would get in "cost reductions" (on deductibles and co-pays) with a Silver plan?
by floydtime
Sun Nov 17, 2013 9:02 am
Forum: Personal Finance (Not Investing)
Topic: Confused about ACA Marketplace options
Replies: 9
Views: 968

Re: Confused about ACA Marketplace options

I found that ehealth.com let me filter by HSA-compatibility for the available plans in my zip code. There were several very low cost Bronze HSA plans (at least in my state) to choose from. Obviously, I see these on the marketplace as well (now working, yay), and will be choosing one of them.
by floydtime
Sat Nov 16, 2013 6:26 am
Forum: Personal Finance (Not Investing)
Topic: Signing up for health care
Replies: 324
Views: 38841

Re: Signing up for health care

Awesome, thank you LadyGeek. For those of you who have already signed up, are you provided the option during sign-up to NOT have an " advance premium tax credit" sent to your insurance company? gerrym51 mentioned this earlier, and here is the IRS information he pointed out (apologies for the IRS-ese (my highlight))... Starting in 2014, individuals and families can take a new premium tax credit to help them afford health insurance coverage purchased through an Affordable Insurance Exchange. The premium tax credit is refundable so taxpayers who have little or no income tax liability can still benefit. The credit also can be paid in advance to a taxpayer’s insurance company to help cover the cost of premiums. On May 18, 2012, the Dep...
by floydtime
Wed Nov 13, 2013 7:53 am
Forum: Personal Finance (Not Investing)
Topic: Signing up for health care
Replies: 324
Views: 38841

Re: Signing up for health care

Diogenes wrote:There are many more security issues not fixed. Clearly not worth the risk as of today for most. Maybe in another few weeks, or not, who knows?

Washington Post today:
http://m.washingtonpost.com/national/he ... print.html
Just to help others like me understand - what are the specific remaining security issues? The link above doesn't mention any - not saying there aren't, just that I'd like to understand what they are.
by floydtime
Wed Nov 13, 2013 7:05 am
Forum: Personal Finance (Not Investing)
Topic: Signing up for health care
Replies: 324
Views: 38841

Re: Signing up for health care

You have 2 choices. as long as you buy the policy thru the exchange you DO NOT have to apply for ADVANCED SUBSIDY CREDITS. you can wait until until you actually file your 2014 tax return. much easier and since my wife and i can control our income we've decided to file then. we will be between 300-400 percent (46,00 to 62,000) .we think we willmake it 54,000 but not sure. it is explained 15th red line down. I think most people think you have to do this up front http://www.irs.gov/uac/Affordable-Care-Act-Tax-Provisions health insurance premium tax credit Thank you for this information - it's a very good point that I agree many people don't understand yet. If you don't NEED the credit up front, it will be much easier just to get it at tax tim...
by floydtime
Wed Sep 18, 2013 2:40 pm
Forum: Investing - Theory, News & General
Topic: Why are bond prices falling?
Replies: 16
Views: 1935

Re: Why are bond prices falling?

So much for that.
by floydtime
Tue Sep 17, 2013 1:20 pm
Forum: Investing - Theory, News & General
Topic: Why are bond prices falling?
Replies: 16
Views: 1935

Re: Why are bond prices falling?

What time frame are you referring to? Over the past few days, bond prices have gone up quite a bit.
by floydtime
Mon Sep 16, 2013 6:40 am
Forum: Investing - Theory, News & General
Topic: The Bull's In Charge!
Replies: 32
Views: 4321

Re: The Bull's In Charge!

The funny thing is, one camp or the other (or both if you wait long enough) will say "I told you so" after their guess turns out true. And it is a guess.
by floydtime
Mon Sep 09, 2013 7:08 am
Forum: Personal Finance (Not Investing)
Topic: Do you budget for expenditures or saving?
Replies: 30
Views: 3131

Re: Do you budget for expenditures or saving?

Since I'm retired, I budget.
by floydtime
Fri Sep 06, 2013 2:01 pm
Forum: Personal Finance (Not Investing)
Topic: Just applied for Social Security
Replies: 36
Views: 4199

Re: Just applied for Social Security

gkaplan wrote:Who would want to live in Mississippi?
The people who live there perhaps? :)
by floydtime
Fri Sep 06, 2013 1:29 pm
Forum: Investing - Theory, News & General
Topic: bad time for bonds?
Replies: 37
Views: 5095

Re: bad time for bonds?

It's always a good time. When the stock market tanks (which it will from time to time) you will be very happy you had something in bonds. You won't get rich off of bonds, but that is not what they are for.

Some folks don't understand duration, but believe me, at your age, you are many times the duration away from needing the money. Get a good bond index fund for your safe money (at your age, probably just around 25-35% of your portfolio), and celebrate if/when interest rates go up.
by floydtime
Fri Sep 06, 2013 11:03 am
Forum: Personal Investments
Topic: 10 year Treasury Rate Hits 3%
Replies: 23
Views: 4504

Re: 10 year Treasury Rate Hits 3%

Munir wrote:So it's not a question of if and when will the rate rise anymore.
Of course it is. You have no more idea if interest rates will go up or down in the future than you did a year ago.

I was just glad to see my dividends go up. Today not so much, but it really doesn't matter.
by floydtime
Wed Aug 28, 2013 12:23 pm
Forum: Investing - Theory, News & General
Topic: U.S. stocks in free fall
Replies: 36221
Views: 4651668

Re: U.S. stocks in freefall

Trader007 wrote:<Sat Dec 17, 2011 8:38 am>Stock indices should continue down for several months now. Looks like end of February-end of March. Will be more specific later.
I wonder when this guy is going to come back and give us more specifics? :oops:
by floydtime
Fri Aug 23, 2013 12:53 pm
Forum: Personal Investments
Topic: When "getting back to even" isn't really even
Replies: 19
Views: 2547

Re: When "getting back to even" isn't really even

Why are you (the OP) assuming that the holders of such a fund will sell it as soon as the duration is up (and/or, as soon as they are back to "nominally even" in the scenario you outline)? Most will hold it for many times the duration, and many never sell at all and just live off a portion of the dividends. The higher the dividends, the better, in either scenario. If you're worried about unexpected inflation, mix in some TIPS and IBonds (or, say, equities) as others have suggested.
by floydtime
Thu Aug 22, 2013 3:05 pm
Forum: Personal Consumer Issues
Topic: Boglehead Beer
Replies: 1071
Views: 202961

Re: Boglehead Beer

Whatever beer is in my hand is my favorite. You know what they say, better to have a bottle in front of me than a frontal lobotomy.
by floydtime
Wed Aug 21, 2013 1:24 pm
Forum: Personal Investments
Topic: Bond Market Ruckus
Replies: 66
Views: 7124

Re: Bond Market Ruckus

MnD wrote:Why would you "stay the course" if you _knew_ interest rates were going to rise?
You could go to cash and CD's and buy many more bond shares at lower prices when rates had normalized.
Correct, if you knew the future, you could time the market in this way and be rich.

I don't know the future, so I stay the course, and if bond prices go up, I'm happy, and if bond prices fall, I'm really happy. My risk is in the equity portion of my portfolio. The bond portion is relatively risk free no matter what happens IF my time horizon is long, which it is, and which the OP's is.

Here's hoping my monthly dividends are even higher at the end of this month than last.
by floydtime
Wed Aug 21, 2013 11:58 am
Forum: Personal Investments
Topic: Bond Market Ruckus
Replies: 66
Views: 7124

Re: Bond Market Ruckus

cflannagan wrote:In fact, I'm excited at the thought of bond fund prices falling in my portfolio. This means a lot more shares being bought due to reinvestment and also rebalancing.. and eventually, decades later, all those extra shares bought is going to bring me more income collectively. Sweet thoughts.
Yes, yes, yes! I'm glad somebody (multiple somebodies, obviously) gets it! If you are decades away from retirement (heck, even a decade), get on your knees and PRAY for your yield to rise.
by floydtime
Wed Aug 21, 2013 11:10 am
Forum: Personal Investments
Topic: Bond Market Ruckus
Replies: 66
Views: 7124

Re: Bond Market Ruckus

Let's take a look at recent history. Here in the UK a typical bond fund has lost 7% in the last year and is now offering the princely distribution yield of 2.23%. Net return for the bond investor of minus 4.77%. Surely a case for holding part (maybe all) of fixed income in cash instruments which at least will maintain nominal value. Yes bonds may surge if stocks tank but it is not guaranteed, so maybe not worth a high exposure. If you are looking at one year for a bond fund, you shouldn't be in a bond fund in the first place. If you are looking at the NAV for a bond fund, you may not understand how bond funds work. That increase in yield is a good thing and you should be hoping for continuing increases in the future if you your time horizo...
by floydtime
Wed Aug 21, 2013 10:39 am
Forum: Personal Consumer Issues
Topic: Door to door annoyances--easy way to stop?
Replies: 60
Views: 6496

Re: Door to door annoyances--easy way to stop?

Answer the door naked.
by floydtime
Wed Aug 21, 2013 9:58 am
Forum: Personal Investments
Topic: Bond Market Ruckus
Replies: 66
Views: 7124

Re: Bond Market Ruckus

For the OP, being MANY years away from retirement, bonds are not a bad investment. Who cares what yields are now? He is many TIMES the duration away from needing the money. Buy into your bond fund, ignore the NAV, AND PRAY that rates go through the roof. Any other advice here is, at its core, market timing advice.

I'd go 80% TSM and 20% TBM at that age (maybe with some intl in the stock portion as well).

Look up Duration. It is clear that some on this thread do not understand how it works. It is not a religious tenet, it is math.
by floydtime
Mon Aug 19, 2013 9:10 am
Forum: Personal Investments
Topic: Catching a falling knife in the bond market?
Replies: 15
Views: 2556

Re: Catching a falling knife in the bond market?

When do you need the money that you are placing into TBM?