Search found 2026 matches

by Bustoff
Thu Dec 07, 2023 5:19 am
Forum: Personal Finance (Not Investing)
Topic: Social Security Tax Calculator
Replies: 17
Views: 2345

Re: Social Security Tax Calculator

Can anyone recommend a decent calculator for determining how much Social Security will be included in taxable income? The following little spreadsheet requires only three inputs (in cells B2:B4) to do this. For example a single taxpayer with $30K of SS benefits and $20K of other income will have $5,350 of his SS taxable as shown below on row 12. As a bonus, rows 14:16 calculate three inflection points as shown in the single taxpayer example of the Wiki's Taxation of Social Security benefits . Row Col A Col B Formula in Column B 2 Single = 1 / Joint = 2 1 3 Social Security benefit 30,000 4 Other income (including tax exempt) 20,000 5 Relevant income (1/2 SS + Other income) 35,000 =B3/2+B4 6 50% threshold 25,000 =IF(B2=1,25000,IF(B2=2,32000,...
by Bustoff
Thu Dec 07, 2023 5:09 am
Forum: Personal Finance (Not Investing)
Topic: Social Security Tax Calculator
Replies: 17
Views: 2345

Re: Social Security Tax Calculator

bonesly wrote: Wed Dec 06, 2023 7:46 pm
Bustoff wrote: Wed Dec 06, 2023 5:02 pm I’m trying to get an idea how much of our Social Security will be taxed...
The Social Security Site shows this:
IRS wrote: You will pay tax on your Social Security benefits based on Internal Revenue Service (IRS) rules if you:

- File a joint return, and you and your spouse have a combined income* that is
  • Between $32,000 and $44,000, you may have to pay income tax on up to 50% of your benefits.
  • More than $44,000, up to 85% of your benefits may be taxable.
If your AGI is >$44K then 85% of your SS benefit is taxable, otherwise 50% is taxable.
Yes … but if total taxable income is unknown (my situation), I can’t determine what marginal rate to apply to the 85%.
by Bustoff
Wed Dec 06, 2023 5:57 pm
Forum: Personal Finance (Not Investing)
Topic: Social Security Tax Calculator
Replies: 17
Views: 2345

Re: Social Security Tax Calculator

Thanks Printer86!
That’s a good one. Just one thing to point out. If 65 yoa or over you must add extra deduction somewhere. The calculator does not offer that as an adjustment. I just added the extra deduction to my income to account for that.
by Bustoff
Wed Dec 06, 2023 5:02 pm
Forum: Personal Finance (Not Investing)
Topic: Social Security Tax Calculator
Replies: 17
Views: 2345

Social Security Tax Calculator

[Topic is now in Personal Finance (Not Investing) - tax question. mod mkc]

I’m trying to get an idea how much of our Social Security will be taxed in order to get a rough idea what this years taxable income will total.
Can anyone recommend a decent calculator for determining how much Social Security will be included in taxable income?
Have seen charts that show the percentages but have not found one that will calculate how much will become taxable.
Thanks in advance!
by Bustoff
Mon Aug 21, 2023 8:36 am
Forum: Personal Finance (Not Investing)
Topic: Bought Tesla but won’t owe enough tax to claim EV tax credit?
Replies: 20
Views: 3717

Re: Bought Tesla but won’t owe enough tax to claim EV tax credit?

Thanks to everyone for helping me with your advice.

Now the challenge will be calculating Roth conversion amount to increase our tax liability up to $7500. :shock:
by Bustoff
Sun Aug 20, 2023 7:40 pm
Forum: Personal Finance (Not Investing)
Topic: Bought Tesla but won’t owe enough tax to claim EV tax credit?
Replies: 20
Views: 3717

Re: Bought Tesla but won’t owe enough tax to claim EV tax credit

Is there an annual limit on the amount converted to a Roth?
by Bustoff
Sun Aug 20, 2023 7:31 pm
Forum: Personal Finance (Not Investing)
Topic: Bought Tesla but won’t owe enough tax to claim EV tax credit?
Replies: 20
Views: 3717

Re: Bought Tesla but won’t owe enough tax to claim EV tax credit?

Pdxnative wrote: Sun Aug 20, 2023 4:50 pm Given your situation if you can hold off until next year you can then claim that for next years taxes.
Can I claim the tax credit next year even though we bought the car this year?
by Bustoff
Sun Aug 20, 2023 4:30 pm
Forum: Personal Finance (Not Investing)
Topic: Bought Tesla but won’t owe enough tax to claim EV tax credit?
Replies: 20
Views: 3717

Re: Bought Tesla but won’t owe enough tax to claim EV tax credit?

jebmke wrote: Sun Aug 20, 2023 4:12 pm
Bustoff wrote: Sun Aug 20, 2023 4:04 pm Another thought was would it be more advantageous converting enough of the TIRA to my Roth. Would that be taxed as ordinary income as well?
Yes, this would be preferred
Thank you! Im not well versed re Roth conversions. Could you advise why the Roth Conversion would be the better option?
by Bustoff
Sun Aug 20, 2023 4:04 pm
Forum: Personal Finance (Not Investing)
Topic: Bought Tesla but won’t owe enough tax to claim EV tax credit?
Replies: 20
Views: 3717

Bought Tesla but won’t owe enough tax to claim EV tax credit?

[Topic is now in Personal Finance (Not Investing) - EV tax credit. mod mkc] We bought a Tesla Model 3 this month. I screwed up. Never occurred to me the $7500 EV tax credit applies only to this years taxes and cannot be carried forward. (Dumb mistake on my part.) Between our tax bracket and income we wouldn’t even come close to owing enough taxes to claim the full $7500 tax credit. Last year after standard deduction our federal tax was only $2050. I’m trying to figure out how to increase our tax liability so that we can take advantage of the full $7500 tax credit. My initial thought was to make a qualified withdrawal from one of our Traditional IRA accounts in order to increase our tax liability to $7500. We are 70 and 67 yoa. I’m not even...
by Bustoff
Fri Jul 28, 2023 7:23 am
Forum: Personal Investments
Topic: How to reduce taxes on returns with low stock allocation
Replies: 20
Views: 1203

Re: How to reduce taxes on returns with low stock allocation

Jack FFR1846 wrote: Fri Jul 28, 2023 7:03 am Switch bond investments to tax exempt bond funds.
On the stock side, switch from VTI-like funds to non-dividend paying investments such as BRK or AMZN.
For money market accounts, put that money into the above 2 besides what you need to spend.
Use money market account money to buy US Savings bonds.

I'm doing all of this except for the bond side as all of my bonds are in traditional IRAs.
Very interesting. So if am understanding correctly:
1. Switch from index to individual stocks?
2. Move money market fund into tax-exempt bond fund and US Savings Bonds?

FYI- All our tax-advantaged are in VUSXX and BND.
by Bustoff
Fri Jul 28, 2023 7:13 am
Forum: Personal Investments
Topic: How to reduce taxes on returns with low stock allocation
Replies: 20
Views: 1203

Re: How to reduce taxes on returns with low stock allocation

MrJedi wrote: Fri Jul 28, 2023 6:39 am Do you have any 401k/IRA etc. that you can swap your money market into and then buy stock in taxable instead?

Otherwise you can get municipal money market or bond that is exempt from tax. They have lower nominal yield but if you have high tax rate you can have higher after tax yield.
I had no idea one could move money from taxable accounts into an existing tax-advantaged TIRA’s. Really?
by Bustoff
Fri Jul 28, 2023 6:33 am
Forum: Personal Investments
Topic: How to reduce taxes on returns with low stock allocation
Replies: 20
Views: 1203

Re: How to reduce taxes on returns with low stock allocation

Buy an annuity with a COLA for your monthly draw, keep a healthy emergency fund, and put the rest in stocks. Is the income from an annuity taxed at rates lower than the “ordinary income” we receive from our money market fund? We really have no need for an investment that provides a monthly draw. All our expenses including, travel and entertainment are covered by SS and pension. Also, as mentioned in my OP, we have identified based on our need, ability, and willingness for risk, that our current 20% stock allocation eliminates any desire to allocate more than 20% to stocks. (Am fully aware that qualified dividends and LT gains from stocks are taxed at lower capital gains rates.) What I am not well versed in is how to reduce taxes on the “or...
by Bustoff
Thu Jul 27, 2023 7:14 pm
Forum: Personal Investments
Topic: How to reduce taxes on returns with low stock allocation
Replies: 20
Views: 1203

How to reduce taxes on returns with low stock allocation

Am 7O, retired, pension, social, no debt. We have no children or heirs. Have low risk tolerance and no need for any further increase in risk or returns at this point.

My taxable account allocation is 20% VTI and 80% federal money market. This allocation along with SS and pension more than covers our expenses.
In fact our total nest egg has remained the same since we retired 13 years ago.

The problem is the 80% of my returns from the money market are taxed as ordinary income.
Is there any way to reduce my taxes without holding more stocks in taxable account?

Would appreciate any thoughts or comments.

Thanks!
by Bustoff
Thu Jul 27, 2023 6:20 pm
Forum: Personal Investments
Topic: Roth Conversion 5 year wait rule question
Replies: 19
Views: 1929

Re: Roth Conversion 5 year wait rule question

Many thanks to everyone for helping me understand this.
by Bustoff
Thu Jul 20, 2023 6:50 am
Forum: Personal Investments
Topic: Roth Conversion 5 year wait rule question
Replies: 19
Views: 1929

Re: Roth Conversion 5 year wait rule question

Okay maybe in getting to old, but everything I’m reading says the same thing.

Watch out for the five-year rule!
“The IRS requires any conversion to have occurred at least five years before you access the money.”

“If you have not kept assets in your Roth IRA for five or more years, you may be charged taxes and/or penalties on withdrawals,” says Keihn. “If you think you’re going to need to withdraw the assets in less than five years from opening a Roth IRA, you may want to reconsider a conversion or have a conversation with a CPA to see if it’s still the best path for you.”
by Bustoff
Wed Jul 19, 2023 2:30 pm
Forum: Personal Investments
Topic: Roth Conversion 5 year wait rule question
Replies: 19
Views: 1929

Re: Roth Conversion 5 year wait rule question

retiredjg wrote: Wed Jul 19, 2023 2:22 pm Not if "many years ago" is at least 5 years.

Your Roth IRA is "qualified" (you are over 59.5 and your first contribution to Roth IRA was in or before 2018). Everything in there is available tax and penalty free.
Think my question was not worded properly.
So if I converted my entire TIRA to Roth, there would be no 5 year wait required for withdrawals?
by Bustoff
Wed Jul 19, 2023 1:26 pm
Forum: Personal Investments
Topic: Roth Conversion 5 year wait rule question
Replies: 19
Views: 1929

Roth Conversion 5 year wait rule question

Am retired, 70 years old, collecting SS and on Medicare.
Have both traditional and Roth IRA’s that were set up many years ago during employment.
If I convert my entire Traditional IRA to a Roth, do I have to wait 5 years before taking withdrawals without penalty?
by Bustoff
Tue Jul 18, 2023 4:22 pm
Forum: Investing - Theory, News & General
Topic: Trading Treasuries (nominal and TIPS)
Replies: 4107
Views: 455651

Re: Trading Treasuries (nominal and TIPS)

exodusing wrote: Tue Jul 18, 2023 4:16 pm
Bustoff wrote: Tue Jul 18, 2023 3:56 pm Are all the T-Bills $1,000 face value if buying a quantity of 1?
Yes. One tbill is $1,000, sixteen is $16,000, etc.
Thanks exo!
Interpreting the quantities for T-Bills is confusing. (using Vanguard secondary market)
by Bustoff
Tue Jul 18, 2023 3:56 pm
Forum: Investing - Theory, News & General
Topic: Trading Treasuries (nominal and TIPS)
Replies: 4107
Views: 455651

Re: Trading Treasuries (nominal and TIPS)

Are all the T-Bills $1,000 face value if buying a quantity of 1?
by Bustoff
Tue Jul 18, 2023 4:34 am
Forum: Personal Investments
Topic: Get out of Vanguard Short-Term Federal Fund?
Replies: 17
Views: 2834

Re: Get out of Vanguard Short-Term Federal Fund?

livesoft wrote: Fri Jul 14, 2023 4:17 pm
With dividends reinvested, Morningstar.com suggests the fund is not down 9% since July 2021, but maybe down only 5%. That's much better than an intermediate-term total US bond index fund like VBTLX which is down about 12% over the same time.

Have you rebalanced more money into VSGDX since equities have gone way up this year? If not, then why not? That's how to recover losses in VSGDX: buy low and sell high. Of course, you really shouldn't care whether you recover any losses or not.
Hi Livesoft!
It’s been awhile since checking in with the Boglehead family.
Need some follow up advice.
I switched VSGDX dividends to “reinvest” back into VSGDX.
But how much stocks should be sold to reinvest into VSGDX?
by Bustoff
Tue Jul 18, 2023 3:57 am
Forum: Personal Investments
Topic: Get out of Vanguard Short-Term Federal Fund?
Replies: 17
Views: 2834

Re: Get out of Vanguard Short-Term Federal Fund?

livesoft wrote: Fri Jul 14, 2023 4:17 pm
Bustoff wrote: Fri Jul 14, 2023 1:22 pm Moved a considerable amount of money into Vanguard Short-Term Federal Fund VSGDX in July 2021. (It’s in my tax-advantage account.) Since then the fund is down over 9%.
With dividends reinvested, Morningstar.com suggests the fund is not down 9% since July 2021, but maybe down only 5%. That's much better than an intermediate-term total US bond index fund like VBTLX which is down about 12% over the same time.

Have you rebalanced more money into VSGDX since equities have gone way up this year? If not, then why not? That's how to recover losses in VSGDX: buy low and sell high. Of course, you really shouldn't care whether you recover any losses or not.
by Bustoff
Mon Jul 17, 2023 4:04 pm
Forum: Personal Investments
Topic: Get out of Vanguard Short-Term Federal Fund?
Replies: 17
Views: 2834

Re: Get out of Vanguard Short-Term Federal Fund?

Thanks to everyone for your thoughts. Needed to hear some Boglehead wisdom to counter my behavioral slip. :sharebeer
by Bustoff
Fri Jul 14, 2023 4:01 pm
Forum: Personal Investments
Topic: Get out of Vanguard Short-Term Federal Fund?
Replies: 17
Views: 2834

Re: Get out of Vanguard Short-Term Federal Fund?

Johm221122 wrote: Fri Jul 14, 2023 1:27 pm How close to retirement?

You need to have a plan which includes what form of fixed income to hold. There is no free lunch, whichever fixed income choice you make has risk (individual issues, money market, short term, intermediate and long term fixed income)
Thanks.
Have been retired for years now and still have a few years until RMD’s.
Was actually wanting to avoid bond funds in favor of T-Bill ladder CD’s or money market.
Just not sure how long it would take to recover losses staying in VSGDX.
by Bustoff
Fri Jul 14, 2023 1:22 pm
Forum: Personal Investments
Topic: Get out of Vanguard Short-Term Federal Fund?
Replies: 17
Views: 2834

Get out of Vanguard Short-Term Federal Fund?

Moved a considerable amount of money into Vanguard Short-Term Federal Fund VSGDX in July 2021. (It’s in my tax-advantage account.) Since then the fund is down over 9%.
I’m wondering if I should move VSGDX into the Federal Money Market Fund in order to avoid further losses.
Don’t normally poke around like this but am really tempted in light of further interest rate hikes.
Would appreciate any advice/feedback from the forum.
Thanks!
by Bustoff
Tue Jul 11, 2023 4:44 pm
Forum: Personal Investments
Topic: Fake Vanguard email spoof [May not be spoof - Move to brokerage platform request]
Replies: 11
Views: 3804

Re: Fake Vanguard email spoof [May not be spoof - Move to brokerage platform request]

Just received same email today. It did look suspect. Rather than replying to email I went directly to Vanguard site.
Checked my delivery settings and discovered a couple of our holdings needed consent for e-delivery.
by Bustoff
Wed Jun 28, 2023 7:01 am
Forum: Personal Consumer Issues
Topic: International Long Haul Flight - Premium Economy?
Replies: 61
Views: 6271

Re: International Long Haul Flight - Premium Economy?

Can never sleep on regular Economy. Hoping this is better. Thanks. It isn't better for sleep. I've flown United PE (the true PE cabin, not economy plus) and you're basically getting a bit more leg room, a foot rest, and a slightly wider seat. The biggest issue for me in sleeping on a plane is recline, and the PE seats barely recline further than regular economy, so you're still essentially sleeping upright. If you can't sleep in economy, I doubt you can sleep any better in PE. I think PE is worth $3-400 more than economy (depending on the length of the flight), but I am routinely seeing PE tickets that cost $1,000 more than economy. Having flown in PE, there's no way it's even close to being worth that premium. I get the impression its a b...
by Bustoff
Wed Jun 28, 2023 6:56 am
Forum: Personal Consumer Issues
Topic: International Long Haul Flight - Premium Economy?
Replies: 61
Views: 6271

Re: International Long Haul Flight - Premium Economy?

Last year we flew business class to Venice on AA. We had lie flat seats and it was a real treat.
On our return flight we had premium economy. I didn’t like it. Won’t do premium economy again.
Maybe I was spoiled from the business class experience on the way over.
by Bustoff
Tue Jun 27, 2023 4:07 pm
Forum: Personal Finance (Not Investing)
Topic: 6.35% fixed rate or cash offer?
Replies: 51
Views: 4859

Re: 6.35% fixed rate or cash offer?

Keeping it simple.

From MIT grad and prolific YouTuber Sal Khan.

https://www.youtube.com/watch?v=YL10H_EcB-E
by Bustoff
Tue Jun 27, 2023 3:56 pm
Forum: Personal Finance (Not Investing)
Topic: Is it better to buy house now or in few years?
Replies: 25
Views: 3333

Re: Is it better to buy house now or in few years?

Investment advisor William Bernstein rule of thumb is:
Never pay more than 15 years' fair rental value for any home, or 180 months of rent.
by Bustoff
Mon Apr 10, 2023 3:34 pm
Forum: Personal Finance (Not Investing)
Topic: SSA-1099 and Medicare Part B deductions
Replies: 11
Views: 684

Re: SSA-1099 and Medicare Part B deductions

FiveK wrote: Mon Apr 10, 2023 2:30 pm
Bustoff wrote: Mon Apr 10, 2023 2:20 pm Okay, think I figured it out.
Last year I sold some Total Stock Mkt shares. They were taxed as long term cap gains. My taxes for those gains was zero.
This year was only ordinary dividends.
So guessing long term cap gains show up as taxable income on line 15 even if they were taxed at zero?
OK, so we're not talking about the SSA-1099 form itself, but how the Taxation of Social Security benefits works? Does that wiki answer your question?
Thank you for the wiki link! It’s a great resource. Should have looked there first.
by Bustoff
Mon Apr 10, 2023 2:20 pm
Forum: Personal Finance (Not Investing)
Topic: SSA-1099 and Medicare Part B deductions
Replies: 11
Views: 684

Re: SSA-1099 and Medicare Part B deductions

Okay, think I figured it out.

Last year I sold some Total Stock Mkt shares. They were taxed as long term cap gains. My tax rate on those LT gains was zero.
So guessing long term cap gains show up as taxable income on line 15 even if they were taxed at zero?
That must be why last years “taxble income” was higher than this year and why I owed less last year than this year.

This year “taxable income” all ordinary dividends so those were taxed at a higher rate.
by Bustoff
Mon Apr 10, 2023 2:04 pm
Forum: Personal Finance (Not Investing)
Topic: SSA-1099 and Medicare Part B deductions
Replies: 11
Views: 684

Re: SSA-1099 and Medicare Part B deductions

Thanks for your replies!
Sorry about not correctly naming the boxes.

What got me going on this is that my taxable income (line15) this year is less than last year, but my tax (line 16) has doubled from last year!?
Am really confused.
by Bustoff
Mon Apr 10, 2023 12:32 pm
Forum: Personal Finance (Not Investing)
Topic: SSA-1099 and Medicare Part B deductions
Replies: 11
Views: 684

SSA-1099 and Medicare Part B deductions

Re Form SA-1099 Social Security Benefit Statement, can anyone explain why the “Medicare Part B premiums deducted” amount is added to the total SS benefits for 2022? Why wouldn’t the Medicare Part B premiums be subtracted from the total SS benefits?

Thanks
by Bustoff
Fri Mar 24, 2023 3:55 pm
Forum: Investing - Theory, News & General
Topic: Bernstein on TIPS and T-bills
Replies: 171
Views: 26645

Re: Bernstein on TIPS and T-bills

Curious if I-Bonds (in my Treasury Direct account) qualify re Bernstein’s TIPS allocation? I would say yes. I now view our pile of IBonds as “separate” from our marketable portfolio, similar to how one would view a TIPS LMP. Unlike TIPS, I don’t need to decide ahead of time on how much to ladder. This is because IBonds don’t have any interest rate risk. I view them as a social-security like stream of income that can be turned on and off at will. For example 10,000 of IBonds can supply $1000/yr of inflation protected purchasing power for 10 years, or $10,000 of inflation protected purchasing power in 10 years from now. My choice :). As such they can act like an income smoothing agent when withdrawing from a volatile, marketable portfolio (c...
by Bustoff
Fri Mar 24, 2023 1:45 pm
Forum: Investing - Theory, News & General
Topic: Bernstein on TIPS and T-bills
Replies: 171
Views: 26645

Re: Bernstein on TIPS and T-bills

Curious if I-Bonds (in my Treasury Direct account) qualify re Bernstein’s TIPS allocation?
by Bustoff
Fri Mar 24, 2023 1:25 pm
Forum: Personal Consumer Issues
Topic: What Movie Have You Recently Watched?
Replies: 11037
Views: 2066756

Re: What Movie Have You Recently Watched?

Watched “Hereditary” last night. Am a fan of creepy movies. Not boring at all. Also pretty creepy by my standards for creepiness. ymmv
by Bustoff
Mon Feb 27, 2023 1:46 pm
Forum: Personal Investments
Topic: Does Vanguard have a bond ladder tool?
Replies: 3
Views: 1841

Re: Does Vanguard have a bond ladder tool?

RetiredinKaty wrote: Mon Feb 27, 2023 12:54 pm Yes. But you have to log into your Vanguard account and indicate that you wish to trade bonds to access the bond trading platform. The ladder facility is under one of the resource tabs at the top of the page.
Thanks RK! Will check it out.
by Bustoff
Mon Feb 27, 2023 8:26 am
Forum: Personal Investments
Topic: Does Vanguard have a bond ladder tool?
Replies: 3
Views: 1841

Does Vanguard have a bond ladder tool?

I’ve seen a Vanguard bond ladder tool mentioned in the forum. Poked around the Vanguard website but could not find anything.
by Bustoff
Thu Jan 19, 2023 8:48 am
Forum: Personal Consumer Issues
Topic: Garage Door Opener Replacement
Replies: 48
Views: 4068

Re: Garage Door Opener Replacement

SevenBridgesRoad wrote: Wed Jan 18, 2023 7:54 pm
HomeStretch wrote: Wed Jan 18, 2023 5:20 pm I can’t comment on installing it as I had mine professionally installed a couple years ago. But I really like the LiftMaster 3/4 hp W-LED (belt drive) opener. Very quiet when operating. It also has My-Q wi-fi access (to open it remotely or check if door was left open), bright auto-sensor LED that lights the entire garage and battery back-up so it operates during power outages.
I second this.
+ Me too!
BTY, sometimes it’s the sensors that get old or the lenses need cleaning or adjusting.
by Bustoff
Tue Jan 17, 2023 7:03 am
Forum: Personal Investments
Topic: Where to put cash other than ibonds right now (due to inflation)
Replies: 31
Views: 5781

Re: Where to put cash other than ibonds right now (due to inflation)

They don't come with inflation protection - but TIPS' inflation protection isn't free, either. The cost of TIPS' inflation protection is very arguably so small as to be inconsequential to most retail investors, and it might even be negative. The breakeven inflation rate on 5 year TIPS is only 3.2%, which is far below the most recent annual inflation rate of 8.5%. I would argue against 100% TIPS for 5 years out or longer. No one knows where we'll be then. Investment Grade Corporate bonds of all maturities may be the wild card. I have long argued that 100% TIPS and I bonds should be the default position for investors. Otherwise, they are taking on inflation risk for little or no compensation. Just curious if you mean 100% TIPS for bond porti...
by Bustoff
Thu Dec 29, 2022 2:19 pm
Forum: Personal Investments
Topic: Bond losses
Replies: 6
Views: 1057

Re: Bond losses

Thanks!
by Bustoff
Thu Dec 29, 2022 9:59 am
Forum: Personal Investments
Topic: Bond losses
Replies: 6
Views: 1057

Bond losses

Happy New Year Bogleheads,

Have losses in bond funds and bond ETFs in tax-advantaged accounts (assuming many other folks as well).
With the inability to TLH those losses tax-advantaged, was curious what strategies, if any, others are employing?

Thanks
by Bustoff
Wed Dec 28, 2022 9:41 am
Forum: Personal Consumer Issues
Topic: Flight attendant travel tips
Replies: 193
Views: 22814

Re: Flight attendant travel tips

That being said southwest realizes that they have certain number of passengers that had delayed connectors and thus will hold plane up to 30 -45 minutes to permit people to connect. When this happened I was happy to catch my plane but the had to sit in row 28 in a middle seat despite having a A1-15 boarding pass. I have seen many people very upset having paid “business” fair and the.

Why would you lose your seat assignment?
by Bustoff
Fri Oct 21, 2022 10:31 am
Forum: Personal Investments
Topic: Sell Vanguard Short Term Federal?
Replies: 16
Views: 1562

Re: Sell Vanguard Short Term Federal?

Oh sorry, forget a question.
Assuming a rising rate environment going forward, (I know, big assumption) should one reinvest the bond fund dividends or sweep the dividends into money market fund?
by Bustoff
Fri Oct 21, 2022 10:22 am
Forum: Personal Investments
Topic: Sell Vanguard Short Term Federal?
Replies: 16
Views: 1562

Re: Sell Vanguard Short Term Federal?

David Jay wrote: Thu Oct 20, 2022 4:07 pm
Bustoff wrote: Thu Oct 20, 2022 3:32 pmDon’t know why I’m getting anxious about this. Have been in “stay the course” mode for a long time.
Bond funds have seen a near historic drop in value because interest rates have seen a series of near historic rate increases. Treasuries that were at 1.x% a few months ago are now at 4.x%. So your anxiety is natural. Unfortunately for us humans, "natural" is not the same as "good investing".
Copy that.
Thanks to everyone that contributes to this forum, was able to adopt an asset allocation based on my own risk tolerance (Thanks Swedroe).
Took for granted that the safe part of AA, ie bonds, would be the safe harbor.

But as they say …

“A smooth sea never made a skilled sailor.”
by Bustoff
Thu Oct 20, 2022 3:32 pm
Forum: Personal Investments
Topic: Sell Vanguard Short Term Federal?
Replies: 16
Views: 1562

Re: Sell Vanguard Short Term Federal?

suemarkp wrote: Thu Oct 20, 2022 12:48 pm What were your reasons for buying into this fund? Were you in long term bonds and wanting to go shorter? Were you in stocks and wanted something less volatile and willing to give up return? If so, you met those goals, and lost less money than you would have if you kept it where it was.
Was in Total Bond Fund. Thought switching to a shorter duration would be better.
Don’t know why I’m getting anxious about this. Have been in “stay the course” mode for a long time.

Thanks for your thoughts!
by Bustoff
Thu Oct 20, 2022 1:04 pm
Forum: Personal Investments
Topic: Sell Vanguard Short Term Federal?
Replies: 16
Views: 1562

Re: Sell Vanguard Short Term Federal?

David Jay wrote: Thu Oct 20, 2022 12:01 pm I would say that this is not the time to sell. The reason for the drop is that interest rates have increased. This means two things for bond funds:
1) You will receive more interest on your money, so that is a good thing
2) Your fund value has temporarily dropped. Because it is a short term fund, it will quickly recover the full value. This is temporary, but the additional interest that you will earn should be much longer lasting.

If you sell now, you will experience all the pain without any of the gain.
Thanks David!
There is no immediate need for cash. If I keep the VSGDX, should the dividends be reinvested or sweep them into the money market fund.
by Bustoff
Thu Oct 20, 2022 11:54 am
Forum: Personal Investments
Topic: Sell Vanguard Short Term Federal?
Replies: 16
Views: 1562

Re: Sell Vanguard Short Term Federal?

jebmke wrote: Thu Oct 20, 2022 11:09 am I have used ST Treasury Index with Short Term Federal as a TLH pair. My preferred landing spot is the former. TLH destination should be something you are willing to hold forever. My last US equity TLH was 3/16/2009; I will hold it to the end (mine).
TLH as in tax loss harvesting?
My short term federal bond fund is in tax-advantaged. I didn’t think you could use TLH with assets in tax-advantage accounts.
by Bustoff
Thu Oct 20, 2022 11:03 am
Forum: Personal Investments
Topic: Sell Vanguard Short Term Federal?
Replies: 16
Views: 1562

Sell Vanguard Short Term Federal?

Retired and am 69 yoa.
Transferred $180,000 to Vanguard Short Term Federal in July 2021. The current balance is now down to $169,000 for a loss of $16,000. This is in my tax advantage account.
Am concerned about further losses and wondering if selling/transferring to the Federal Money Market fund or VUSB (Vanguard Ultra Short Bond Fund)
would be a mistake.
Is there a better course of action? Would appreciate any thoughts.