Search found 104 matches

by aspiringboglehead
Mon Apr 13, 2020 4:58 pm
Forum: Non-US Investing
Topic: No need to invest for Europeans?
Replies: 119
Views: 6694

Re: No need to invest for Europeans?

Of the people I know in the richer European countries, exceedingly few defer consumption in order to invest more, so they seem to agree with you or at least act as if they do. Some of it is just cultural, too. America (and, e.g., Switzerland) seem to have cultures that promote capital appreciation b...
by aspiringboglehead
Tue Dec 10, 2019 9:25 pm
Forum: Personal Finance (Not Investing)
Topic: $1.05 fee for changing my address?
Replies: 23
Views: 3671

Re: $1.05 fee for changing my address?

They once seriously messed up a temporary mail forward for which they charged me $1, and just on principle I requested a refund of the dollar. They didn't give it back.
by aspiringboglehead
Sat Nov 30, 2019 1:57 pm
Forum: Personal Finance (Not Investing)
Topic: Alliant Credit Union security?
Replies: 8
Views: 793

Re: Alliant Credit Union security?

The wider problem may be that you were phished. If you log in using a fake website, the perpetrators can intercept both your login/password and a session cookie that allows them to avoid requiring 2FA. Did the 2FA text you got include a link? Did you follow that link or type in the website by yours...
by aspiringboglehead
Sat Nov 30, 2019 11:38 am
Forum: Personal Finance (Not Investing)
Topic: Alliant Credit Union security?
Replies: 8
Views: 793

Re: Alliant Credit Union security?

Have you ever given your credentials to an aggregation site? The reason is I had a similar issue with Capital One just last week but my account there has been closed for about a year. Only thing I could think of is was at one time that account was linked to Personal Capital that I also do not use a...
by aspiringboglehead
Sat Nov 30, 2019 2:14 am
Forum: Personal Finance (Not Investing)
Topic: Alliant Credit Union security?
Replies: 8
Views: 793

Re: Alliant Credit Union security?

Did you mean you changed your account username and password - how can you choose (and I'm asking, not quibbling) to change your account number? Would that not mess up every link to every other account or credit payment you have? Yikes! Bad news if someone did hack that, it's what we all fear. Yes, ...
by aspiringboglehead
Sat Nov 30, 2019 2:08 am
Forum: Personal Finance (Not Investing)
Topic: Alliant Credit Union security?
Replies: 8
Views: 793

Alliant Credit Union security?

My Alliant Credit Union account was apparently hacked today, even though I use two-factor authentication with them, had a strong unique password, and never entered the password except on secure devices. I received an SMS message with a two-factor-authentication code despite not having logged in; whe...
by aspiringboglehead
Tue Oct 15, 2019 7:15 pm
Forum: Personal Investments
Topic: Is VUSXX Really Safer Than FDIC Insured Bank Account?
Replies: 22
Views: 2303

Re: Is VUSXX Really Safer Than FDIC Insured Bank Account?

One thing that's often missed in these debates is that to lose FDIC-insured funds in a bank account, two things need to happen: (1) the bank needs to fail and (2) the US government needs to fail to pay its obligations. To lose money in a Treasury bill (or a collection of them), only the latter needs...
by aspiringboglehead
Fri Mar 29, 2019 12:07 pm
Forum: Investing - Theory, News & General
Topic: Does a Roth IRA Solve the "Taxflation" Problem?
Replies: 18
Views: 2083

Re: Does a Roth IRA Solve the "Taxflation" Problem?

The general answer is that both Roth IRAs and traditional IRAs (which, as Ketawa said, are equivalent as long as tax rates, etc., are held constant) are both, equivalently, reductions on a savings tax and thus on the "inflation tax" you are discussing. In other words, as against taxable sa...
by aspiringboglehead
Fri Mar 29, 2019 11:26 am
Forum: Investing - Theory, News & General
Topic: Does a Roth IRA Solve the "Taxflation" Problem?
Replies: 18
Views: 2083

Re: Does a Roth IRA Solve the "Taxflation" Problem?

Due to what is sometimes called "taxflation" or the "inflation tax," the portion of the capital gain from stocks or the interest from bonds that is due purely to inflation is taxed as though it were a real gain. For example, if your stock or mutual fund goes from $10/share to $1...
by aspiringboglehead
Thu Mar 28, 2019 12:04 pm
Forum: Personal Finance (Not Investing)
Topic: Are family vacations considered a reportable gift?
Replies: 33
Views: 4595

Re: Are family vacations considered a reportable gift?

That is what my tax/estate guy told me. Not just general 'ordinary life', but specifically that you can consider inviting people along for a vacation, or dinner, to be for your own purposes, their company. If you *send* somebody on a vacation (like pay for a kid's honeymoon), that's definitely a gi...
by aspiringboglehead
Wed Mar 27, 2019 6:54 pm
Forum: Personal Finance (Not Investing)
Topic: VUSXX interest question
Replies: 5
Views: 1492

Re: VUSXX interest question

As with any Mutual Fund Money Market, the shares are pegged at $1 but in theory could break the buck, but due the gates and procedures in place, this fund is designed to avoid that possibility up to and including in very extreme cases, delaying redemptions. Just to clarify, VUSXX is a government mo...
by aspiringboglehead
Sat Mar 23, 2019 6:36 pm
Forum: Investing - Theory, News & General
Topic: The 17th Century Bond That’s Still Paying Interest
Replies: 14
Views: 3455

Re: The 17th Century Bond That’s Still Paying Interest

There is no general rule in American law against perpetual contracts. It is important to distinguish between the presumption that an indefinite contract is terminable at will (which does exist, though it is poorly justified as a matter of interpretive policy -- indeed, its lack of interpretive sound...
by aspiringboglehead
Mon Mar 11, 2019 12:33 pm
Forum: Personal Investments
Topic: Excel function to project retirement
Replies: 8
Views: 1098

Re: Excel function to project retirement

There's nothing wrong with spreading out the calculation into a table, and some people find that easier to look at. But of course problems like this have unified analytical answers, and sometimes (as in this case) those answers are expressed in convenient Excel functions. The answers to your two que...
by aspiringboglehead
Sun Mar 10, 2019 9:03 pm
Forum: Personal Investments
Topic: Generating income from Amazon Stock, raising cost basis and more
Replies: 8
Views: 844

Re: Generating income from Amazon Stock, raising cost basis and more

But after hours of penciling things out, I'm wondering if I should not worry about the tax at all, considering I can start generating anywhere from about $24,000 to $9,600,000 a year when I engage my plan. These figures are based on working with about 100 shares and anywhere from a $1 to $100 swing...
by aspiringboglehead
Fri Mar 08, 2019 12:47 am
Forum: Personal Investments
Topic: Need to park about 1,000,000 for 7-8 months
Replies: 77
Views: 9505

Re: Need to park about 1,000,000 for 7-8 months

typical.investor wrote: Fri Mar 08, 2019 12:07 am Schwab has an a global account for this. It gives US residents access to foreign markets.
£9/trade
Potentially expensive currency-conversion fees, though, no? For someone who's going to be a resident, I still think it's worth exploring UK accounts instead.
by aspiringboglehead
Thu Mar 07, 2019 11:52 pm
Forum: Personal Investments
Topic: Need to park about 1,000,000 for 7-8 months
Replies: 77
Views: 9505

Re: Need to park about 1,000,000 for 7-8 months

How can I purchase UK Treasury bills while I am still in the US? I do not have a bank account there since I do not have a resident address there. Are there ways? You'll probably need to open an account there based on your upcoming residency. HSBC was often said to be useful for this in the past, bu...
by aspiringboglehead
Thu Mar 07, 2019 2:19 pm
Forum: Personal Investments
Topic: ESPP shares tank before I can sell
Replies: 26
Views: 1792

Re: ESPP shares tank before I can sell

This is fascinating and entirely plausible. If this is happening, my choice becomes: 1) Don't participate. 2) Be willing to hold the shares until they rebound from these shenanigans. Changes my risk profile, but all options are on the table. There is a third choice, which is to participate but to h...
by aspiringboglehead
Wed Mar 06, 2019 9:15 pm
Forum: Personal Investments
Topic: Need to park about 1,000,000 for 7-8 months
Replies: 77
Views: 9505

Re: Need to park about 1,000,000 for 7-8 months

Hmm, interesting. Thanks for pointing that out. What do you mean by GBP cash or cash equivalent. Please elaborate. The money is currently in a property that will be selling soon. The idea is that if you're sure you're going to use the money to buy a house in the UK (in GBP, or Great British Pounds)...
by aspiringboglehead
Tue Mar 05, 2019 8:04 pm
Forum: Personal Finance (Not Investing)
Topic: Anyone leaving behind a scholarship fund?
Replies: 63
Views: 4451

Re: Anyone leaving behind a scholarship fund?

I always encourage people to think about giving to smaller schools and perhaps secondary schools instead of to universities. I say this as a university professor, so it's against my interests! But the money can make much more of a difference to (for example) a high school than to a well-endowed univ...
by aspiringboglehead
Tue Mar 05, 2019 6:12 pm
Forum: Personal Finance (Not Investing)
Topic: How the Fed calculates household's Net Worth
Replies: 99
Views: 7001

Re: How the Fed calculates household's Net Worth

Oh, to be clear, I was just talking about the overall estimates produced by these agencies, not the technique of subtracting liabilities from assets. The Fed publishes data about actual estimated households' net worths in the country, as does the IRS (which infers averages based on taxable estates)...
by aspiringboglehead
Tue Mar 05, 2019 5:46 pm
Forum: Personal Investments
Topic: Need to park about 1,000,000 for 7-8 months
Replies: 77
Views: 9505

Re: Need to park about 1,000,000 for 7-8 months

I would not speculate on forex rates with your house fund. As soon as you know these funds are intended to fund a near term GBP liability, they should be in GBP cash or cash equivalent. I agree. At the very least, I would reduce some of the currency risk by parking some of the money in UK Treasury ...
by aspiringboglehead
Tue Mar 05, 2019 5:39 pm
Forum: Personal Finance (Not Investing)
Topic: How the Fed calculates household's Net Worth
Replies: 99
Views: 7001

Re: How the Fed calculates household's Net Worth

2 q's 1. What do you mean by "indirect" measurement? Isn't net worth = asset - debt? Seems to me, the Fed's method is direct. 2. I googled "IRS estate-multiplier technique" and read 2 articles from IRS.gov. The method may provide a better estimate. But it can't be applied to the...
by aspiringboglehead
Tue Mar 05, 2019 5:22 pm
Forum: Personal Finance (Not Investing)
Topic: How the Fed calculates household's Net Worth
Replies: 99
Views: 7001

Re: How the Fed calculates household's Net Worth

This sort of indirect measurement is often complicated and disputed. From everything I've seen, I've been persuaded that the IRS's estate-multiplier technique is a more accurate measure of household wealth than the Fed's statistics. (For whatever it's worth, the estate-multiplier technique produces ...
by aspiringboglehead
Tue Mar 05, 2019 5:18 pm
Forum: Personal Finance (Not Investing)
Topic: Legally Mine asset protection, family limited partnerships
Replies: 6
Views: 1090

Re: Legally Mine asset protection, family limited partnerships

Irrevocable trusts and family LPs/LLCs are a commonly used device for many reasons, one of which is that they can improve the likelihood of asset protection, even if (as others have said) the law is not certain. I obviously don't recommend particular providers of these services, particularly if they...
by aspiringboglehead
Tue Mar 05, 2019 3:10 pm
Forum: Investing - Theory, News & General
Topic: “Market Always Goes Up” defense without past performance
Replies: 143
Views: 10083

Re: “Market Always Goes Up” defense without past performance

Good on you to dig into the details of pension accounting, but you're confusing discount rate (used to discount the liabilities) and expected rate of returns (used for the asset side of the equation). I don't have time to go into the detail but I suggest your read the pension section for Whirlpool'...
by aspiringboglehead
Tue Mar 05, 2019 11:39 am
Forum: Investing - Theory, News & General
Topic: “Market Always Goes Up” defense without past performance
Replies: 143
Views: 10083

Re: “Market Always Goes Up” defense without past performance

You are wrong that private pensions use lower discount rates that "mirror the risk-free rate." Private pensions assume similarly high returns that require equity price appreciation. On the contrary, what I said before appears to be exactly correct: Statement of Financial Accounting Standa...
by aspiringboglehead
Mon Mar 04, 2019 10:05 pm
Forum: Investing - Theory, News & General
Topic: “Market Always Goes Up” defense without past performance
Replies: 143
Views: 10083

Re: “Market Always Goes Up” defense without past performance

For a simple example, the average pension system in the US is assuming roughly a 7% return. The average public pension system. So if I'm reading you correctly, the core of your argument is that either stocks will continue to rise or several states and municipalities will have pension crises. That s...
by aspiringboglehead
Mon Mar 04, 2019 9:53 pm
Forum: Personal Investments
Topic: Vanguard Personal Performance numbers don't match
Replies: 5
Views: 1170

Re: Vanguard Personal Performance numbers don't match

I have now forwarded the info and question to my Vanguard Rep. Will post whatever the findings happen to be and conclusion. Good luck! I haven't found that sort of history on the site to be reliable; even the historical chart of my balances and deposits isn't accurate. I once mentioned this to my r...
by aspiringboglehead
Mon Mar 04, 2019 9:42 pm
Forum: Investing - Theory, News & General
Topic: “Market Always Goes Up” defense without past performance
Replies: 143
Views: 10083

Re: “Market Always Goes Up” defense without past performance

For a simple example, the average pension system in the US is assuming roughly a 7% return. The average public pension system. So if I'm reading you correctly, the core of your argument is that either stocks will continue to rise or several states and municipalities will have pension crises. That s...
by aspiringboglehead
Mon Mar 04, 2019 4:19 pm
Forum: Personal Finance (Not Investing)
Topic: Should I switch my daily banking business to Ally?
Replies: 51
Views: 5116

Re: Should I switch my daily banking business to Ally?

Alliant Credit Union. If there are partner branches nearby, you get the best of both worlds. High interest rates/good app like online banks and ability to deposit cash when needed. Also $20 per month reimbursement for atm. I switched to Alliant from Chase about a year ago and have not missed a thin...
by aspiringboglehead
Sun Mar 03, 2019 12:26 pm
Forum: Investing - Theory, News & General
Topic: Optimal approaches when you've "won the game"
Replies: 38
Views: 3792

Re: Optimal approaches when you've "won the game"

I too am a big fan of William Bernstein. Larry Swedroe has written something to the effect that “the strategy for becoming rich is totally different from the strategy for staying rich”. Based I think on something I read by Bernstein a long time ago, I’m a big fan of viewing one's assets as a whole ...
by aspiringboglehead
Sun Mar 03, 2019 11:54 am
Forum: Investing - Theory, News & General
Topic: Optimal approaches when you've "won the game"
Replies: 38
Views: 3792

Re: Optimal approaches when you've "won the game"

I've always thought that many people adopt approaches that are too risky and complicated in order to keep up with inflation. For example, money markets have done surprisingly well at keeping up with inflation on their own: https://portfoliocharts.com/2017/05/12/understanding-cash-will-make-you-a-bet...
by aspiringboglehead
Sat Mar 02, 2019 9:06 pm
Forum: Investing - Theory, News & General
Topic: Optimal approaches when you've "won the game"
Replies: 38
Views: 3792

Optimal approaches when you've "won the game"

I wonder if there's any interesting or helpful analysis to cover the situation that arises when you've built up a portfolio that comfortably allows you to meet your financial goals. One thought that occurs to me is that it may be useful to allocate some funds toward redundant "insurance" o...
by aspiringboglehead
Sat Mar 02, 2019 2:09 pm
Forum: Personal Finance (Not Investing)
Topic: BH could you live off your SS benefit?
Replies: 141
Views: 8726

Re: BH could you live off your SS benefit?

My expenses never increased as my income did, so they are still roughly what they were when I was 21. I'm easily in the top 1% (by income and accumulation) but have annual expenses that amount to about 2/3 of what the Social Security Administration estimates my benefits will be at 70. (My tally of e...
by aspiringboglehead
Sat Mar 02, 2019 1:26 am
Forum: Personal Investments
Topic: VSUXX vs VMMXX vs VMFXX vs Money Market (FDIC insured)
Replies: 39
Views: 17159

Re: VSUXX vs VMMXX vs VMFXX vs Money Market (FDIC insured)

Personally, I find the safety, simplicity, and liquidity guarantee of VUSXX (or outright Treasury-bill purchases, but I'm willing to pay the expense ratio for the convenience) to be appealing for larger holdings. Remember, retail money-market funds (vs. government money-market funds) don't have an a...
by aspiringboglehead
Fri Mar 01, 2019 10:06 pm
Forum: Personal Finance (Not Investing)
Topic: Dynasty Trusts
Replies: 6
Views: 891

Re: Dynasty Trusts

The notion of a "dynasty trust" isn't a formal legal concept; it's just a casual term for irrevocable trusts that maximize the benefits of the lifetime exemption amounts for the estate tax and the generation-skipping-transfer tax. Once the money is in the trust, it can generate income for ...
by aspiringboglehead
Fri Mar 01, 2019 2:05 am
Forum: Investing - Theory, News & General
Topic: “Market Always Goes Up” defense without past performance
Replies: 143
Views: 10083

Re: “Market Always Goes Up” defense without past performance

Looking back at past market results I’m not trying to extract any information about any specific time in the future. I think we can't avoid doing that completely because of our limited personal investment horizons. At least for personal investment plans (compared to those on behalf of charitable gi...
by aspiringboglehead
Fri Mar 01, 2019 1:48 am
Forum: Personal Investments
Topic: Is it hard to capture tiny profits trading if you are not greedy?
Replies: 26
Views: 2371

Re: Is it hard to capture tiny profits trading if you are not greedy?

This approach has some similarities to a Martingale approach at conventional (Vegas style) gambling. I just wanted to endorse this and was going to say exactly the same thing. I have seen the experience of "day traders" that I know mirror the highs and lows of Martingale betting. (You can...
by aspiringboglehead
Fri Mar 01, 2019 1:44 am
Forum: Investing - Theory, News & General
Topic: “Market Always Goes Up” defense without past performance
Replies: 143
Views: 10083

Re: “Market Always Goes Up” defense without past performance

I don’t see any inconsistency. Timing the market does not work, but assessing the market’s statistical properties by judiciously looking at its history does. Clearly, only a fool tries to forecast the next roulette wheel spin, but it is perfectly ok to derive the chances of winning by looking at a ...
by aspiringboglehead
Thu Feb 28, 2019 10:13 pm
Forum: Personal Investments
Topic: Want no interest, dividends or distributions in 2019
Replies: 45
Views: 4928

Re: Want no interest, dividends or distributions in 2019

Are banks flexible with 12-month CDs? The tax code permits them to be. Perhaps surprisingly, I don't recall having seen any CDs recently that would take advantage of that flexibility. I have a vague memory that I have seen these in the past (though perhaps that was just in examples in regulatory or...
by aspiringboglehead
Thu Feb 28, 2019 9:57 pm
Forum: Investing - Theory, News & General
Topic: “Market Always Goes Up” defense without past performance
Replies: 143
Views: 10083

Re: “Market Always Goes Up” defense without past performance

Because from my lay perspective, it just seems INSANE to be buying equities today when global trade is slowing I think an important recognition is at the core of your question. On one hand, we reject strategies to time the market based on past performance. On the other, we use the past performance ...
by aspiringboglehead
Thu Feb 28, 2019 8:05 pm
Forum: Personal Investments
Topic: Want no interest, dividends or distributions in 2019
Replies: 45
Views: 4928

Re: Want no interest, dividends or distributions in 2019

Thank you for the official link: you must report the full amount of the interest income on each of your Treasury bills at the time it reaches maturity. I notice that tax is due each year for a CD. Tax is due each year for Treasury obligations as well; it's just that Treasury bills have a maximum ma...
by aspiringboglehead
Wed Feb 27, 2019 11:52 am
Forum: Personal Finance (Not Investing)
Topic: Can I split interest from proceeds on 1099-B?
Replies: 4
Views: 418

Re: Can I split interest from proceeds on 1099-B?

As you suggest, and contrary to what many people seem to assume, a 1099 does not dictate your tax liability; it is simply a report. I don't have statistics on the risk of an audit, but, particularly if you explain what you're doing in an attached letter, it seems unlikely that what you suggest would...
by aspiringboglehead
Tue Feb 26, 2019 11:35 am
Forum: Personal Investments
Topic: Vanguard platform is a mess ... UX-wise [User eXperience]
Replies: 65
Views: 6576

Re: Vanguard platform is a mess ... UX-wise

I don't have a problem with the fundamental nature of the information that Vanguard shows; their site exposes an underlying complexity and delay (in settlement) that actually exists. But I wish the website would show a consistent image of my accounts across various pages, at any time I decide to che...
by aspiringboglehead
Sat Feb 23, 2019 9:36 pm
Forum: Personal Investments
Topic: bitcoin guy wants to stock market
Replies: 234
Views: 13814

Re: bitcoin guy wants to stock market

As another way to look at it, you can sell a long term bond (or bond fund, or CD) at a "gain" if interest rates have fallen, but the reason for that is that you're giving up the higher rate that you locked in the past. Your proceeds from the "gain" would then be invested at the n...
by aspiringboglehead
Sat Feb 23, 2019 9:34 pm
Forum: Personal Investments
Topic: bitcoin guy wants to stock market
Replies: 234
Views: 13814

Re: bitcoin guy wants to stock market

i know bonds are basically just loans. but for total market bond funds, isn't the fund expected to grow or is the interest/dividends your only gains? That growth comes from interest and dividends; the total-market bond funds generally buy bonds when they're issued and hold them to maturity. There a...
by aspiringboglehead
Sat Feb 23, 2019 8:55 pm
Forum: Personal Investments
Topic: bitcoin guy wants to stock market
Replies: 234
Views: 13814

Re: bitcoin guy wants to stock market

but don't know enough about bonds to drop them that quick. i know bonds are considered less volatile, but they still aren't guaranteed like FDIC. if a company becomes insolvent it's a complete loss for the holdings in that company. i know some tax exempt bonds i don't have to pay tax on dividends b...
by aspiringboglehead
Sat Feb 23, 2019 7:46 pm
Forum: Personal Investments
Topic: bitcoin guy wants to stock market
Replies: 234
Views: 13814

Re: bitcoin guy wants to stock market

i also find it equally bizarre you guys are so hard about manager fee's and obsess about 0.0X% expense ratios but are willing to throw money away on insurance. Investment fees are a pure loss if they don't generate extra gains (and most people here are convinced they don't), whereas the theory behi...
by aspiringboglehead
Sat Feb 23, 2019 3:37 pm
Forum: Investing - Theory, News & General
Topic: Does investing actually help a company ?
Replies: 46
Views: 3330

Re: Does investing actually help a company ?

By buying shares, you are paying to step into the shoes of someone who helped the company (or one of their successors) by making an equity investment in it, and you are also receiving the potential benefit that originally came with that help (a share of the profits and a residual claim to the assets...