Search found 4615 matches

by rkhusky
Fri Jan 19, 2018 2:39 pm
Forum: Investing - Theory, News & General
Topic: TSP's F Fund outperforms the G Fund, so why is the G Fund favored?
Replies: 34
Views: 2075

Re: TSP's F Fund outperforms the G Fund, so why is the G Fund favored?

I just don't see the relevance in comparing widely accepted means of estimating bond return to what actually happened in the past. So if what actually happened doesn't match up with the expected return (e.g. F greatly outperformed G when the yields were always pretty close), then that only proves t...
by rkhusky
Fri Jan 19, 2018 2:26 pm
Forum: Investing - Help with Personal Investments
Topic: Fidelity Freedom 2020 vs Vanguard Index Funds?
Replies: 15
Views: 891

Re: Fidelity Freedom 2020 vs Vanguard Index Funds?

Can anyone please comment on the Fidelity target ["freedom"] index funds vs. the Vanguard equivalents? Do they both have pluses and minuses such that it pays to own both? A glance seems to show that Fidelity has more international stocks and bonds. Thank you. Vanguard has 40% Int'l versus Fidelity'...
by rkhusky
Fri Jan 19, 2018 12:39 pm
Forum: Investing - Theory, News & General
Topic: TSP's F Fund outperforms the G Fund, so why is the G Fund favored?
Replies: 34
Views: 2075

Re: TSP's F Fund outperforms the G Fund, so why is the G Fund favored?

You're talking about actual performance, whereas I was discussing expected performance. The generally accepted method of estimating a bond's return is its current yield minus an estimate of default rate to the extent that defaults are expected or possible. Defaults should be 0 for G fund and very n...
by rkhusky
Fri Jan 19, 2018 7:58 am
Forum: Personal Finance (Not Investing)
Topic: Paying semi-illiterate vendor via credit card who has no email or computer
Replies: 23
Views: 1682

Re: Paying semi-illiterate vendor via credit card who has no email or computer

Also, it looks like Plastiq assesses an approximately 2.5% fee on the person who transmits the payment. That's not a dealbreaker in the gov't. Often, in order to get things on contract, officials will pay a 4-5% overhead fee to a business with an existing contract, in order to pay a contractor with...
by rkhusky
Thu Jan 18, 2018 3:50 pm
Forum: Investing - Theory, News & General
Topic: TSP's F Fund outperforms the G Fund, so why is the G Fund favored?
Replies: 34
Views: 2075

Re: TSP's F Fund outperforms the G Fund, so why is the G Fund favored?

Here's my way of thinking of it. The G fund current yield is 2.375% and has zero risk/zero duration (Source: https://www.tspfolio.com/tspgfundinterestrate). The F Fund yield is/should be ~ 2.62% (source: 30-day yield on VBTLX). So why would you take 6.x years of duration risk, and credit risk (~ 31...
by rkhusky
Thu Jan 18, 2018 1:52 pm
Forum: Investing - Help with Personal Investments
Topic: Rebalancing bands tighter than 5 / 25?
Replies: 17
Views: 1069

Re: Rebalancing bands tighter than 5 / 25?

You might also might want to look at: http://www.wsfaonline.com/resources/Opportunistic_Rebalancing_JFP2007_Daryanani.pdf which looks at various rebalancing bands and I believe recommends 20 percent. I read this over this morning, interesting. One thing about his study is that he assumes a $20 cost...
by rkhusky
Thu Jan 18, 2018 1:32 pm
Forum: Investing - Theory, News & General
Topic: 0% growth on stocks for the next decade?
Replies: 16
Views: 1842

Re: 0% growth on stocks for the next decade?

Bogle probably didn't foresee the Trump tax cuts. On the other hand, perhaps there will be a big correction in 2-3 years and he will turn out to be right, on average, after all.
by rkhusky
Thu Jan 18, 2018 8:08 am
Forum: Investing - Theory, News & General
Topic: TSP's F Fund outperforms the G Fund, so why is the G Fund favored?
Replies: 34
Views: 2075

Re: TSP's F Fund outperforms the G Fund, so why is the G Fund favored?

I think it is worthwhile to have more of the F Fund early in your career in order to allow the small return advantage that it has had over the G Fund to compound. As you get closer to retirement and you prepare to start to withdraw, you may want to increase the proportion to the G Fund because of it...
by rkhusky
Thu Jan 18, 2018 7:59 am
Forum: Personal Finance (Not Investing)
Topic: Federal pension Vs Higher salary + 401k savings plan
Replies: 32
Views: 2637

Re: Federal pension Vs Higher salary + 401k savings plan

Jags4186 wrote:
Thu Jan 18, 2018 7:30 am
Also, if it’s like away from extended family thats 1 thing, I wouldn’t leave my wife and kids for 2-3 years for a $100k job.
I wouldn't either, but most in the military do so for less pay than that.
by rkhusky
Wed Jan 17, 2018 8:28 pm
Forum: Investing - Theory, News & General
Topic: [n X expenses + r] instead of [n X expenses]
Replies: 27
Views: 1030

Re: [n X expenses + r] instead of [n X expenses]

If you have the "r" you don't need as much "n", because "n" is usually computed to take into account bad spells in the market. So, instead of 25X, perhaps you can do 22X + $100K.
by rkhusky
Wed Jan 17, 2018 4:43 pm
Forum: Personal Finance (Not Investing)
Topic: Federal pension Vs Higher salary + 401k savings plan
Replies: 32
Views: 2637

Re: Federal pension Vs Higher salary + 401k savings plan

Option#1: A relatively stable executive job in the federal government , with reasonable pay (over 100k), and comes with excellent pension benefits. Almost 50% of my last 3 yrs pay (it will be easily over $200k), so the lifetime pension will be nearly 100k per year. The standard federal pension prov...
by rkhusky
Wed Jan 17, 2018 2:53 pm
Forum: Investing - Help with Personal Investments
Topic: Withdrawals from Index Funds and Taxes
Replies: 3
Views: 401

Re: Withdrawals from Index Funds and Taxes

If I understand this correctly, The contributions and long term gains will be tax free and the short term (2%) will be taxed at my normal tax rate. Is that correct? Contributions are tax free, but you can't just pull those out without the gains. As long as the combination of income + cap gains rema...
by rkhusky
Wed Jan 17, 2018 1:10 pm
Forum: Investing - Help with Personal Investments
Topic: Rebalancing bands tighter than 5 / 25?
Replies: 17
Views: 1069

Re: Rebalancing bands tighter than 5 / 25?

For me, checking to see if I need to rebalance takes more time than the actual rebalancing. Since I check every two weeks when I get a paycheck, I see no reason not to rebalance if the AA is off by a sufficient amount, generally 1-2% absolute. I'm not looking for a rebalancing bonus, I just don't li...
by rkhusky
Wed Jan 17, 2018 10:54 am
Forum: Personal Finance (Not Investing)
Topic: Roth 401(k) vs Traditional 401(k) contributions in 2018
Replies: 8
Views: 529

Re: Roth 401(k) vs Traditional 401(k) contributions in 2018

I would definitely put at least enough in Traditional to get into the 24% bracket. Let's suppose your pension is $100K and that you take the pension at 59.5, which puts you just below the 22% boundary with the $24K standard deduction. You could then withdraw $90K/yr from Traditional and stay in the ...
by rkhusky
Wed Jan 17, 2018 8:45 am
Forum: Investing - Help with Personal Investments
Topic: Newbie wanting to INVEST!
Replies: 26
Views: 1654

Re: Newbie wanting to INVEST!

Thanks for that. Both seem to be good "set it and forget it" type of investments if I'm not mistaken. Most people would not consider the Total US market as a set it and forget it fund by itself, since it doesn't have bonds or international stocks. There are those who advocate for 100% stock, even i...
by rkhusky
Wed Jan 17, 2018 8:37 am
Forum: Personal Finance (Not Investing)
Topic: Roth 401(k) vs Traditional 401(k) contributions in 2018
Replies: 8
Views: 529

Re: Roth 401(k) vs Traditional 401(k) contributions in 2018

Do you plan to retire before 70? If so, you could convert some of the Traditional funds to Roth while you are in a lower tax bracket.
by rkhusky
Tue Jan 16, 2018 9:15 pm
Forum: Investing - Help with Personal Investments
Topic: Newbie wanting to INVEST!
Replies: 26
Views: 1654

Re: Newbie wanting to INVEST!

Sorry for all of the Schwab questions... I have been there for a while, and do most of my research there as I plan to bank with them. Is there a major differenc between a target date fund such as the https://www.schwab.com/public/schwab/investing/investment_help/investment_research/mutual_fund_rese...
by rkhusky
Tue Jan 16, 2018 9:05 pm
Forum: Personal Finance (Not Investing)
Topic: Vanguard Tax Forms Now Online
Replies: 39
Views: 2415

Re: Vanguard Tax Forms Now Online

You can find the state breakdown of tax exempt muni income here:
https://advisors.vanguard.com/VGApp/iip ... rationData
by rkhusky
Tue Jan 16, 2018 7:09 pm
Forum: Personal Finance (Not Investing)
Topic: Vanguard Tax Forms Now Online
Replies: 39
Views: 2415

Re: Vanguard Tax Forms Now Online

Just got my 1099. Qualified dividends for Total Stock, Mid Cap and Small Cap are 94.78%, 87.18%, 65.72%, respectively. This compares to Vanguard's estimates of 94%, 89%, 71%, respectively.
by rkhusky
Tue Jan 16, 2018 4:47 pm
Forum: Investing - Help with Personal Investments
Topic: Newbie wanting to INVEST!
Replies: 26
Views: 1654

Re: Newbie wanting to INVEST!

Take a look at the options in your tax deferred options at work. Look for a target date fund, something with 2040 - 2050 in the name. If the expenses are less than 0.2%, that is a very good option. If the expenses are 0.5% or less, than it is still an okay option. A target date fund is the easiest w...
by rkhusky
Tue Jan 16, 2018 4:24 pm
Forum: Investing - Help with Personal Investments
Topic: AA mix vs paycheck mix percentages
Replies: 12
Views: 501

Re: AA mix vs paycheck mix percentages

Okay I get it but just for the sake of it, if I'm AA looks like this Vanguard 500 index: 48% Vanguard Extended: 12% Vanguard tot bond: 20% Vanguard tot international: 20% I would want the same % from paycheck to go to these funds, correct? Ex: $100 from pay check 48% of that would go to the 500 Tha...
by rkhusky
Tue Jan 16, 2018 4:19 pm
Forum: Investing - Help with Personal Investments
Topic: Vanguard Index Fund Order Timing
Replies: 3
Views: 282

Re: Vanguard Index Fund Order Timing

RRAAYY3 wrote:
Tue Jan 16, 2018 3:22 pm
4PM EST

If you buy on a weekend / holiday / after 4PM , you will get the next business day's closing price
Except in the summer (and part of the spring and fall), then it is 4PM EDT.
by rkhusky
Tue Jan 16, 2018 4:07 pm
Forum: Personal Finance (Not Investing)
Topic: W2 Vs Last Pay Stub
Replies: 6
Views: 1112

Re: W2 Vs Last Pay Stub

I don't like putting place holders in the tax software. It leaves you open to errors by forgetting to go back and change something that is marked complete. That is so true. That''s why I have a separate file (tax return) saved as "2017Estimate" and my real tax return in another file. Not a bad idea...
by rkhusky
Tue Jan 16, 2018 2:43 pm
Forum: Investing - Help with Personal Investments
Topic: Target Retirement Funds
Replies: 13
Views: 1556

Re: Target Retirement Funds

Much of the above is predicated on assumptions that your fund expenses are what is found on the web. If your 401K has additional fees, especially non-uniform fees, in addition to the base fund fees, then the answers may be different.
by rkhusky
Tue Jan 16, 2018 2:29 pm
Forum: Investing - Theory, News & General
Topic: rebalancing
Replies: 5
Views: 326

Re: rebalancing

Use a muni bond fund if you have to rebalance in a taxable account and are worried about taxation of dividends.
by rkhusky
Tue Jan 16, 2018 2:03 pm
Forum: Investing - Help with Personal Investments
Topic: Bond Allocation with TSP G/F Funds
Replies: 10
Views: 645

Re: Bond Allocation with TSP G/F Funds

The issues are tax efficiency and ease of rebalancing. Since you will be taxed on tax deferred accounts when withdrawing, all else being equal, it makes sense to put your investments with lowest expected return here. Since there are no taxes for withdrawing from a Roth account, it makes sense to put...
by rkhusky
Tue Jan 16, 2018 8:27 am
Forum: Investing - Help with Personal Investments
Topic: Target Retirement Funds
Replies: 13
Views: 1556

Re: Target Retirement Funds

Hello. I currently hold two 401k investments: - Vanguard Target Retirement 2030 Fund (VTHRX) - Schwab Target 2030 SWDRX Straightforward question: Are these good choices? What is your opinion of target funds in general; and these specifically? Vanguard TR funds are a great choice. The Schwab fund ha...
by rkhusky
Tue Jan 16, 2018 8:01 am
Forum: Personal Finance (Not Investing)
Topic: 2018 Withholding Tables
Replies: 87
Views: 10732

Re: IRS announces new withholding tables for 2018

My employer claims that the W-4 filled out for 2017 "expires" in February 2018. They are telling everyone "Give us a new W-4 by February 15, 2018 or we will change your exemption status to single with 0 dependents." I assume you can still fill out as many W-4s as needed over the course of the year,...
by rkhusky
Tue Jan 16, 2018 7:53 am
Forum: Personal Finance (Not Investing)
Topic: 2018 Withholding Tables
Replies: 87
Views: 10732

Re: 2018 Withholding Tables

The Federal 2018 tax brackets have been released: https://www.irs.gov/pub/irs-pdf/n1036.pdf Link is now broken - I am getting a page not found message. I even went to irs.gov and typed in "2018 withholding". I guess I'll try later. New link is the following: https://www.irs.gov/pub/irs-prior/n1036-...
by rkhusky
Mon Jan 15, 2018 4:48 pm
Forum: Personal Consumer Issues
Topic: Will IRS make paper tax forms available?
Replies: 23
Views: 1354

Re: Will IRS make paper tax forms available?

It's not surprising that the paper forms aren't available yet, since the 2017 pdf's are just now showing up on the web site.
by rkhusky
Sat Jan 13, 2018 4:51 pm
Forum: Personal Finance (Not Investing)
Topic: 2018 Withholding Tables
Replies: 87
Views: 10732

Re: IRS announces new withholding tables for 2018

pfrank wrote:
Sat Jan 13, 2018 9:27 am
Use this link instead: https://www.irs.gov/pub/irs-prior/n1036--2018.pdf
New file size is quite a bit smaller, but seems to have the same info.
by rkhusky
Sat Jan 13, 2018 12:04 pm
Forum: Investing - Help with Personal Investments
Topic: Rebalancing out of target funds?
Replies: 8
Views: 752

Re: Rebalancing out of target funds?

I read the wiki page so what I am getting is this: Total international stock index is most optimally placed in taxable, total bond index is most optimally placed in pre-tax Ira, and total us stock index is most optimally placed in Roth IRA. Does that about sum it up? I noticed a few of you suggeste...
by rkhusky
Fri Jan 12, 2018 5:22 pm
Forum: Personal Consumer Issues
Topic: AirBnB my Van?
Replies: 29
Views: 2595

Re: AirBnB my Van?

emanuel_v19 wrote:
Fri Jan 12, 2018 5:14 pm
Or are there other forms or ways I can rent it without using AirBnB?
Craigslist.

If the van is actually a motorhome, there are ways to rent that out. I imagine AirBnB has some minimum standards, such as running water and a toilet.
by rkhusky
Fri Jan 12, 2018 12:38 pm
Forum: Investing - Help with Personal Investments
Topic: Percentage of VWITX subject to AMT
Replies: 8
Views: 320

Re: Percentage of VWITX subject to AMT

VWITX hasn't had PAB's for as long as I've owned it. The High Yield Tax Exempt had some. I agree that this is the party line; and yet, the prospectus indicates that "Up to 20% of each Fund’s assets may be invested in securities that are subject to the alternative minimum tax." Is Vanguard providing...
by rkhusky
Fri Jan 12, 2018 10:14 am
Forum: Personal Finance (Not Investing)
Topic: 2018 Lower Taxes and Higher Marginal Rate for those with children
Replies: 1
Views: 390

2018 Lower Taxes and Higher Marginal Rate for those with children

Regarding tax planning for 2018, are those with children aware of the potential that, although their taxes may be going down, their marginal rates may be going up? This might affect decisions such as Roth vs Traditional, capital gain/loss harvesting, size of IRA/401K contributions, etc. The reason f...
by rkhusky
Fri Jan 12, 2018 9:58 am
Forum: Investing - Help with Personal Investments
Topic: Percentage of VWITX subject to AMT
Replies: 8
Views: 320

Re: Percentage of VWITX subject to AMT

VWITX hasn't had PAB's for as long as I've owned it. The High Yield Tax Exempt had some.
by rkhusky
Thu Jan 11, 2018 2:30 pm
Forum: Personal Finance (Not Investing)
Topic: 2018 Withholding Tables
Replies: 87
Views: 10732

2018 Withholding Tables

The Federal 2018 tax brackets have been released:
https://www.irs.gov/pub/irs-pdf/n1036.pdf

edit: New link is: https://www.irs.gov/pub/irs-prior/n1036--2018.pdf
by rkhusky
Thu Jan 11, 2018 10:09 am
Forum: Investing - Help with Personal Investments
Topic: VT Total World Stock ETF and the Foreign Tax Credit Pinch Out
Replies: 12
Views: 1591

Re: VT Total World Stock ETF and the Foreign Tax Credit Pinch Out

How significant is foreign tax credit if I invested $20,000 in vxus? Before the decent run-up in VXUS, back towards the end of 2016, I was trying to find out how much I could put in it without having to deal with form 1116 for a single filer. It was a hair below 150k invested at that point in time....
by rkhusky
Thu Jan 11, 2018 8:01 am
Forum: Personal Finance (Not Investing)
Topic: Is it time for me to "call in rich"?
Replies: 75
Views: 12095

Re: Is it time for me to "call in rich"?

3% of $3.2M is close to $100K. With your expected expenses, you are set. If you get bored, go do some charity work.
by rkhusky
Wed Jan 10, 2018 4:52 pm
Forum: Investing - Help with Personal Investments
Topic: Can I do Backdoor roth years later?
Replies: 12
Views: 1463

Re: Can I do Backdoor roth years later?

The second table at this link: https://www.bogleheads.org/wiki/Non-deductible_traditional_IRA shows that a taxable account can be better than a non-deductible IRA. But you would need to look at the particulars for your situation. With an IRA (and 401k) you will be paying income tax rates on capital ...
by rkhusky
Wed Jan 10, 2018 4:46 pm
Forum: Investing - Theory, News & General
Topic: Larry Swedroe: Do Funds Earn Their Fees?
Replies: 10
Views: 1155

Re: Larry Swedroe: Do Funds Earn Their Fees?

sport wrote:
Wed Jan 10, 2018 11:04 am
Sandtrap wrote:
Wed Jan 10, 2018 11:02 am
Interesting article.
Thanks for posting.
Does this include Wellington and Wellesley?
Are they exceptions?

mahalo
j :D
and Primecap Fund?
When the ER difference gets to 0.1% and below, it's harder to tell signal from noise. It's a little easier to tell if someone is earning a 1%+ premium.
by rkhusky
Wed Jan 10, 2018 12:48 pm
Forum: Personal Consumer Issues
Topic: Youtube/Netflix/Browser in Car Dash
Replies: 14
Views: 937

Re: Youtube/Netflix/Browser in Car Dash

ianferrel wrote:
Wed Jan 10, 2018 12:44 pm
Updating over the air has major security issues and compliance costs.
I turned off my car's wifi and bluetooth abilities as soon as I saw it was on by default.
by rkhusky
Tue Jan 09, 2018 5:49 pm
Forum: Investing - Theory, News & General
Topic: Is the glidepath (target) strategy just an illusion?
Replies: 33
Views: 2622

Re: Is the glidepath (target) strategy just an illusion?

The link in livesoft's post is to a website called "Early Retirement Now". They focus on longer retirement periods because "early retirement". So, when someone retires at age 45, using a product designed for those retiring at age 65, who is wrong: the glidepath designed for a 65yo, or the 45yo who ...
by rkhusky
Tue Jan 09, 2018 5:30 pm
Forum: Investing - Help with Personal Investments
Topic: Is VWLTX too risky for bond fund?
Replies: 6
Views: 680

Re: Is VWLTX too risky for bond fund?

In a major downturn, you might lose 50% of your portfolio with 100% stocks, or 40% with 20% in bonds.
by rkhusky
Tue Jan 09, 2018 4:19 pm
Forum: Investing - Help with Personal Investments
Topic: target date fund with cash instead of bonds
Replies: 8
Views: 724

Re: target date fund with cash instead of bonds

I was just reading a Kitces article on another subject and he referred to T-Bills as cash. Perhaps your site is also counting T-Bills as cash, whereas other sites like Morningstar or State Street are listing them as bonds. I don't think this is the answer. I can't think of anybody who does not coun...
by rkhusky
Tue Jan 09, 2018 4:10 pm
Forum: Investing - Help with Personal Investments
Topic: AA - Too Heavy Of A Small Cap Tilt?
Replies: 20
Views: 1172

Re: AA - Too Heavy Of A Small Cap Tilt?

There are some who recommend 100% small value for stocks, but increase bonds to something like 50-60%.
by rkhusky
Tue Jan 09, 2018 3:10 pm
Forum: Investing - Help with Personal Investments
Topic: target date fund with cash instead of bonds
Replies: 8
Views: 724

Re: target date fund with cash instead of bonds

I was just reading a Kitces article on another subject and he referred to T-Bills as cash. Perhaps your site is also counting T-Bills as cash, whereas other sites like Morningstar or State Street are listing them as bonds. Perhaps look at other bond funds on your site and see how they list other typ...
by rkhusky
Tue Jan 09, 2018 2:48 pm
Forum: Investing - Theory, News & General
Topic: Is the glidepath (target) strategy just an illusion?
Replies: 33
Views: 2622

Re: Is the glidepath (target) strategy just an illusion?

I think no discussion on Glidepaths is complete without a reading of the 2 articles on glidepaths in the ERN series on SWR. Here is the 1st one: https://earlyretirementnow.com/2017/09/13/the-ultimate-guide-to-safe-withdrawal-rates-part-19-equity-glidepaths/ I am convinced that gliding equities to a...
by rkhusky
Tue Jan 09, 2018 10:48 am
Forum: Personal Consumer Issues
Topic: Hot Water Delay at faucet/shower far from water heater
Replies: 100
Views: 6305

Re: Hot Water Delay at faucet/shower far from water heater

TonyDAntonio wrote:
Mon Jan 08, 2018 9:52 pm
I fill up a bucket using the tub in our master. I use that water to flush the master toilet. The water gets warm right about when the bucket is full and the full bucket is good for one flush. Been doing this for 2.5 years, right after the bathroom remodel.
Awesome! I love frugality.
by rkhusky
Tue Jan 09, 2018 10:20 am
Forum: Personal Finance (Not Investing)
Topic: FIRECALC Question
Replies: 12
Views: 1468

Re: FIRECALC Question

Thanks....I will think very differently about asset allocation for retirement. It seems like for a very long time frame between 70/30 and 75/25 stocks/bonds really does have the highest success rate, based on long-term historical trends. Highest expected success rate is not the same as highest succ...