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Why would you think any normal bank let alone a major bank do that kind of thing? I don't know how it works to be honest. why? Because while I think the money is FDIC insured, I do not want to take any chances. It is a POD account with multiple beneficiaries. From my reading I think this should mean the money is FDIC insured, but I don't know of a way to definitively confirm how this all works exactly. I think you are a bit over-reacting. The failure of a single bank does not mean the failure of the entire financial system. That said, if you ever bought I-bonds, you might have your Treasury Direct account login? I have bought I bonds, but I have never bought treasuries of this type at that website. Instead I have used Vanguard for that. Th...

The hotels will be very expensive at that time of year. I vote for the JW Marriott off Pennsylvania Avenue, close to everything including Metro subway system. There is a food court nearby and street vendors for food. I don't recommend driving in and around DC, although Uber is fine if you must.

The cost looks reasonable. As you probably know, joining fees can be much higher and waiting lists can be long. I passed on opportunities to join a private club in the 1980s and have always regretted it. A club can provide great experiences for the family.

I have cash in this fund now. The SEC 7-day yield and compound yield are currently greater than 4%. All things held equal, if this trend were to continue for the rest of 2023, can one expect to have a total return of greater than 4%?

My DW got covid a couple of weeks ago. We visited Patient First (Urgent Care) two times. On the second visit Patient First did tests including EKG and bloodwork. The doctor then said she needed to go to the ER by ambulance. In the ER, they re-ran the tests that had been done by Patient First. The ER was given the results from Patient First the hospital had to run their own tests according to policy. She spent four nights in the hospital. I am wondering if anyone has experienced this and whether Medicare approved both claims? (We did not request any of these tests; Patient First said her condition was critical on the second visit. If we had realized the seriousness of her situation, we would have gone to the ER instead of Patient First a sec...

So, I see that the total return of this mutual fund has averaged 3.33% since inception in 2001. Has that exceeded the average inflation rate over the same time period? Does this fund (and other indexed mutual bond funds) buy bonds at issuance and keep them until maturity? Does the fund actively buy and sell bonds on the secondary market frequently and regularly?

gck1891 wrote: ↑Fri Feb 24, 2023 4:51 am I think there has been a few posts on this topic.
VT is the easy button and the most convenient option.

The cost for that convenience however there are slightly higher expenses (last I checked), you may not be able to get the foreign tax credit and you lose some ability to TLH as well as control of your international allocation.

I don't need the convenience of a single fund like VT, so splitting into two funds is best, right?

UpperNwGuy wrote: ↑Fri Feb 24, 2023 4:47 am

Prudence wrote: ↑Fri Feb 24, 2023 3:55 am Ok, 58.78% US. Suppose I set it at 60/40 (US/International). Can I set it and forget it, or do I need to periodically redistribute between the two funds and if so when and how frequently?

If US and ex-US perform the same, you can set it and forget it, but if one outperforms the other, then you will need to redistribute between the two funds. When and how often is up to you. Some folk do it once a year. Others do it whenever the imbalance reaches a certain threshold such as 5%.

Would I have to pay capital gains tax, if applicable, each time I redistribute?

Suppose I have a 50/50 portfolio with the stock portion all in taxable. If I decide to split the stock portion 50/50 in two Vanguard funds (total US and total International), will my long-term total returns (reinvesting all dividends in the same proportions) be essentially the same if I just had a single fund (total world)? Taxes might be different to hold them together (risk of not getting a tax credit/deduction). I strongly recommend splitting them up. Ok, will do. The wiki comments that a 70/30 split between US and international is popular. What do you recommend? (My goal for including international is to obtain some diversity but, more importantly, to achieve greater total return than with only one fund i.e., total US). If you don’t ha...

secondopinion wrote: ↑Thu Feb 23, 2023 4:11 pm

Prudence wrote: ↑Thu Feb 23, 2023 4:01 pm Suppose I have a 50/50 portfolio with the stock portion all in taxable. If I decide to split the stock portion 50/50 in two Vanguard funds (total US and total International), will my long-term total returns (reinvesting all dividends in the same proportions) be essentially the same if I just had a single fund (total world)?

Taxes might be different to hold them together (risk of not getting a tax credit/deduction). I strongly recommend splitting them up.

Ok, will do. The wiki comments that a 70/30 split between US and international is popular. What do you recommend? (My goal for including international is to obtain some diversity but, more importantly, to achieve greater total return than with only one fund i.e., total US).

Suppose I have a 50/50 portfolio with the stock portion all in taxable. If I decide to split the stock portion 50/50 in two Vanguard funds (total US and total International), will my long-term total returns (reinvesting all dividends in the same proportions) be essentially the same if I just had a single fund (total world)?

Beensabu wrote: ↑Tue Feb 21, 2023 5:49 pm

Prudence wrote: ↑Tue Feb 21, 2023 4:47 pm I thought the y axis Total Return at the End of the year (9%) included the appreciation plus the coupon interest. No?

Start at 5% on the x-axis. Go straight up until you hit the top blue line. Go left until you hit the y-axis (edit: don't follow the blue line left, just go straight left). That's the total return from appreciation + yield.

The difference between the dashed line and upper line is price appreciation. The difference between 0 and the dashed line is the yield.

Got it now. Thank you for your patience.

I don't get it. Suppose I buy a 10 year Treasury at five percent and market rates drop two percent one year later. Where is the dot on the chart that shows the effect or gain? That chart is for 1% changes not 2% changes, but basically you can find the -1% blue line at 5% (note this is above the dotted line), look at the difference between the dotted line and that blue line (that is the "extra" gain from appreciation), then double that difference and add it to the blue line again. As an aside, note from that point forward the grey line will be at 3%, not 5%, for your bond. This helps. So, if I buy a ten-year Treasury at 5% and market rates fall one percent at the end of the year, then the total return will be over 9% (includes app...

I don't get it. Suppose I buy a 10 year Treasury at five percent and market rates drop two percent one year later. Where is the dot on the chart that shows the effect or gain? That chart is for 1% changes not 2% changes, but basically you can find the -1% blue line at 5% (note this is above the dotted line), look at the difference between the dotted line and that blue line (that is the "extra" gain from appreciation), then double that difference and add it to the blue line again. As an aside, note from that point forward the grey line will be at 3%, not 5%, for your bond. This helps. So, if I buy a ten-year Treasury at 5% and market rates fall one percent at the end of the year, then the total return will be over 9% (includes app...

I don't get it. Suppose I buy a 10 year Treasury at five percent and market rates drop two percent one year later. Where is the dot on the chart that shows the effect or gain?

Is there a simple rule of thumb for predicting how declining interest rates would affect the price of a U.S. Treasury bond? In the link below the SEC explains the relationship. In Example 1, a drop in rates from 3% to 2% (in one year) resulted in an increase in the bond price from $1,000 to $1,082, an 8.2% gain. I wonder if the example were changed to a drop in rates from 5% to 3% in one year, would the gain be greater?

www.sec.gov/files/ib_interestraterisk.pdf

It is difficult to obtain any negative information or opinions from residents of CCRCs. Residents are encouraged to act as marketers for the CCRC. So, I would use buyer beware. After we moved into a CCRC, we found that residents complained frequently and loudly about services. This is hidden until one becomes a resident. CCRCs are having a very hard time with hiring and retaining staff. This affects the services, especially labor-intensive functions such as dining. If possible, try to spend time in the CCRC before you sign the contract. This will be difficult if the CCRC has a strong waiting list. Try to obtain history of the yearly increases in the monthly rent or service fee. Understand how the monthly fee will increase if you or your spo...

What is the issue with the check deposits through the mobile app? Is the app not available, will the check not scan, is the scan rejected later in the process, or something else? I'd break up the target retirement fund into its parts and hold US total market, International total market and bonds at the same allocation of your chosen TR fund across all of your accounts (401Ks, Roth IRAs, taxable). Use a rebalancing band such as described in this WCI post: https://www.whitecoatinvestor.com/rebalancing-the-525-rule/ 24 checks for direct rollovers per year sounds like a lot. That's a very unique situation. When I tapped the deposit check function on the VG mobile app, it just did nothing as if it was not connected. I tried uninstalling and ins...

Usually, how is money "set aside" for those kind of expenses after death?

Rising Sun by John Toland and Hiroshima by John Hersey.

Agent 99 wrote: ↑Thu Feb 02, 2023 3:11 pm

Prudence wrote: ↑Thu Feb 02, 2023 1:59 pm I have Medicare and Part D. To summarize above posts: I should have the doctor submit the prescription to the pharmacy as usual. I go to pick it up and request the pharmacy to give me the best price (Medicare or my discount plan). If l pay with the discount plan, I can send a form to Medicare to record my out of pocket for use in donut hole calculations. So, no negative consequence to using the discount plan. Correct?

Why would you want to get into the donut hole? that’s when your insurance won’t cover any medicine. Perhaps you mean the deductible.

I believe you want Medicare to count all your prescription drug expenses in case your expenses are high, and you pass through the donut hole where the copay is 5%.

I have Medicare and Part D. To summarize above posts: I should have the doctor submit the prescription to the pharmacy as usual. I go to pick it up and request the pharmacy to give me the best price (Medicare or my discount plan). If l pay with the discount plan, I can send a form to Medicare to record my out of pocket for use in donut hole calculations. So, no negative consequence to using the discount plan. Correct?

Celia: I have Medicare and Part D. It sounds like you are suggesting that I am better off continuing to use that to pay for prescriptions, rather than the discount vendors. Just confirming. It depends on the costs of your particular meds and how close you get to the donut hole. I know someone who goes in and out of the donut hole every year, so it makes the most sense for them to use Part D drug plan for everything because once you come out of the donut hole, all the meds cost 5% of their full price. Will a discount plan charge you only 5%? Those who go into the donut hole have expensive and/or many drugs. Does the donut hole cross over years or does the calculation start anew every year? So far DW and I have not come close to donut hole.

Using GoodRX is like using a coupon each time you get a RX using them. The problem with using these discount plans is that you won’t get credit by Medicare on how much money you and the drug plan spent on your drugs. . Therefore it will be difficult for you to move through the various phases (deductable not yet met, initial phase, donut hole/ coverage gap, catastrophic) thus keeping the meds you buy later in the year more expensive than they need to be. In other words, unless you only have one or two meds, you will likely pay the same amount or even more by the end of the year when you use the alternate discount plans. (I recently read that in a few years the maximum out-of-pocket costs for those on a Part D drug plan will be capped at $2,...

You are pretty conservative. I don't see why you wouldn't invest the new $190K in cash in the same way as your $4 million. But, if you want to preserve principal, the two-year Treasury is currently yielding over 4%. You will lose about two percent a year to inflation though.

1. Three fund. 2. Bonds/fixed in tax advantaged. Stocks in taxable. 3. Fidelity. 4. Based on your risk tolerance, 60/40 allocation. Thank you for your help. Question about 2 Tax Strategies are new to me, other than general put money in 401k and Roth I really haven’t given much thought to tax advantaged/taxable until very recently. I wish I would have paid more attention decades ago. As I’ve mentioned I will be leaving Edward Jones that has 2 Roth accounts and 3 taxable accounts. When I get to my next Brokerage I will have 2 Roth and 1 Taxable account. I should put Bonds/fixed in the 2 Roth accounts and stocks in the 1 taxable account? Would you please give me the reasoning behind this? As I’ve said, I really know almost nothing about tax s...

1. Three fund.
2. Bonds/fixed in tax advantaged. Stocks in taxable.
3. Fidelity.
4. Based on your risk tolerance, 60/40 allocation.

retiringwhen wrote: ↑Tue Jan 24, 2023 12:27 pm I am not a 1password user (I use Bitwarden). can you install 1password in the device and have it serve up the password?

I tried this. I login to V through 1password on my phone but V tells me to copy the check into "Transact" icon on my phone yadda yadda. That does not exist, so it is a dead end. This feels like another user being screwed by Vanguards lousy website and customer interface. I give up and will drop this in the mail now and end the madness.

P.S. Cap One and Ally Bank, to name two, make it very easy to use their mobile apps to do transactions. It seems like V will never bother.

I have a samsung phone. I ran into a road block. I use 1password to login on my PC. I can't do it on my samsung because I need a ctrl key on the keypad.Also, this would be the first time I have tried to log into any app where I registered my account, user id and password on my PC.

I copied Vanguard's policy below. If tax form is a "statement" then you need to have $1 million in your account to avoid the $20 fee. I live in an apartment where all the mail is delivered in a central box, so it may be safer for me to receive all statements by e-delivery. If you’re the primary account owner, you can eliminate the fee on brokerage accounts by signing up for e-delivery of statements and the annual privacy policy notice; confirmations; reports, prospectuses, and proxy materials; and notices, amendments, and other important account updates. In addition, Vanguard Brokerage Services does not charge the fee to clients who have an organization or a trust account registered under an employee identification number (EIN) or...

I need to deposit a check from my traditional IRA at Navy Federal Credit Union to my tIRA at Vanguard (IRA transfer). Has anyone done this using Vanguard's mobile app (transmit check image) and how did it go?

Thank you x2.

I am thinking about investing in China equities, through an international fund that includes China, or a China fund. There are many alternatives. What are two or three recommendations?

stillkickin wrote: ↑Sat Jan 07, 2023 2:46 pm Sincere thanks again to all, including Dr. Bernstein, for the helpful replies.

Much here to study and profit from, literally and figuratively!

If you are worried about future high inflation adversely impacting your retirement than adding TIPS to your mix might be helpful. Also, you might consider posting your current portfolio in the following format and the forum experts will provide valuable comments.
https://www.bogleheads.org/wiki/Asking_ ... _questions

I do like Funbridge because you can get a narrative explanation of each hand to understand why you didn't fulfill the contract. (Occasionally, there is a glitch, and the screen has a card in the wrong hand).

sid hartha wrote: ↑Mon Dec 19, 2022 12:18 pm

bighatnohorse wrote: ↑Thu Dec 15, 2022 7:49 pm

ruralavalon wrote: ↑Mon Dec 12, 2022 11:01 am Don't Look Up, on Netflix.

This is a movie about how different people react to predictions that a large comet will soon crash into our planet, starring Jennifer Lawrence and Leonardo DiCaprio.

Recommended.

Trailer

I thought the movie was an analogy to the Covid / Vaccine denials in the real world. ??

I thought it was supposed to be a satire of people who think they can beat/time the market. Oh well I still enjoyed it.

The inbound asteroid or comet was an analogy of climate change.I particularly liked the ending.

Thanks again, Kevin.

I recently bought TIPS 912828B25 due on 1/15/24. My understanding is that at maturity the inflation rate times the par value of the bond is the amount of principal that I would receive. For example, today the Vanguard screen shows a current Bond Inflation Rate of 1.27338. So, if the bond matured today (instead of 1/15/24), I would receive $1,273.38 in principal, correct? (IOW, if the index remained 1.27338 from now until the maturity date, I would receive $1,273.38).

My wife and I moved to a CCRC in March 2021. My wife likes it here, but I regret the decision and we would not have moved had we known what this would be like (due to all the negatives listed in previous posts and more). We were 50-50 (yes-no) about this decision and a dear friend advised us against this move unless it was a strong "yes". We should have listened to her advice. Bottom line: don't move to a CCRC until over 80. Try to get on a waiting list at age 70 and just wait until you are ready. Finally, if at all possible, when the time comes, instead of a CCRC, try to opt for in-home care instead of a CCRC or AL situation (e.g., keep house or move to a smaller place and have in-home care when required). I researched LTCI many ...

Questions:
1.Yield to maturity is 4.2%. Is that real or nominal? Seems high to me. Roughly, how is that calculated? Are future inflation adjustments of the bonds principal in the fund estimated and taken into account somehow?
2.The fund is -11.94% year-to-date. If an investor made an investment on 01/01/2022, and they held that investment for 6.7 years (average duration), would they expect to be in the same position if the -11.94% decrease had never occurred?

Missed it yesterday.Walmart has federal and state for $25.83 today.

whodidntante wrote: ↑Mon Nov 21, 2022 5:26 pm @vineviz, I bought long-term TIPS today. This may be a sign of the apocalypse. I don't know.

Individual bonds or a fund? How did you choose?

Even if you can't do an in-kind transfer, you could just sell in the IRA and buy the same bond in the taxable account. Whatever the effect of interest rates would be, it would affect both transactions the same. Suppose I buy the 2030 TIPS today with a YTM of 1.6%. If I do as you say and sell it in 2028 to satisfy my RMD and buy another 2030, suppose the YTM is now 0.0%. This is what I am trying to avoid. If you will have an RMD in 2028, why not just match up a 2028 TIPS that will mature in that year instead of messing with the hassle of managing a 203O TIPS for a 2028 RMD? Or just use mutual funds instead. I am just trying to understand the mechanics of this nutty TIPS product. Suppose I had a 2045 TIPS and I decide to sell it in 2028 to s...

Suppose my TIPS matures in 2030. May I do an in-kind transfer to taxable for an RMD in, say 2028, so I can keep the TIPS and the YTM until maturity? Even if you can't do an in-kind transfer, you could just sell in the IRA and buy the same bond in the taxable account. Whatever the effect of interest rates would be, it would affect both transactions the same. Suppose I buy the 2030 TIPS today with a YTM of 1.6%. If I do as you say and sell it in 2028 to satisfy my RMD and buy another 2030, suppose the YTM is now 0.0%. This is what I am trying to avoid. If you will have an RMD in 2028, why not just match up a 2028 TIPS that will mature in that year instead of messing with the hassle of managing a 203O TIPS for a 2028 RMD? Or just use mutual f...

Suppose my TIPS matures in 2030. May I do an in-kind transfer to taxable for an RMD in, say 2028, so I can keep the TIPS and the YTM until maturity? Even if you can't do an in-kind transfer, you could just sell in the IRA and buy the same bond in the taxable account. Whatever the effect of interest rates would be, it would affect both transactions the same. Suppose I buy the 2030 TIPS today with a YTM of 1.6%. If I do as you say and sell it in 2028 to satisfy my RMD and buy another 2030, suppose the YTM is now 0.0%. This is what I am trying to avoid. Why? The TIPS in your IRA now has a yield of 0%, and the price has gone up a lot due to the drop in real yield. It does not matter what the yield was when you bought it. Your RMD will be large...

ruud wrote: ↑Wed Nov 23, 2022 12:13 pm

Prudence wrote: ↑Wed Nov 23, 2022 12:00 pm Suppose my TIPS matures in 2030. May I do an in-kind transfer to taxable for an RMD in, say 2028, so I can keep the TIPS and the YTM until maturity?

Even if you can't do an in-kind transfer, you could just sell in the IRA and buy the same bond in the taxable account. Whatever the effect of interest rates would be, it would affect both transactions the same.

Suppose I buy the 2030 TIPS today with a YTM of 1.6%. If I do as you say and sell it in 2028 to satisfy my RMD and buy another 2030, suppose the YTM is now 0.0%. This is what I am trying to avoid.

fabdog wrote: ↑Wed Nov 23, 2022 11:54 am If you buy on Vanguard's platform, they will be held in your Vanguard account. you only hold securities at TD that you buy directly from them, and TD does not support IRA's

Yes, but why would you want to do that? One of the benefits of holding TIPS in tax deferred accounts is not having to recognize (and pay tax on) the inflation adjustments that are recognized each year but you don't actually get till the bond matures.

I assume the market price would be the value towards satisfying your RMD

Mike

Good question. Suppose my TIPS matures in 2030. May I do an in-kind transfer to taxable for an RMD in, say 2028, so I can keep the TIPS and the YTM until maturity?

If I buy TIPS at auction (including any terms, new issue or reissue etc.) by submitting orders to my Vanguard brokerage account (traditional ira), will they be held in my VG account or Treasury Direct?
If I hold TIPS in my VG ira, may I do an in-kind transfer to my taxable account in order to satisfy an RMD?
If so, how is the valuation of the RMD calculated (e.g. price and market value of TIPS including accrued interest at time of transfer or some other basis)?

Regardless of BofA, it seems to me that locking in 1.8% real for 20 to 26 years sounds interesting. I wonder how one would do this: buy and hold until maturity, assuming risk of loss if having to sell bonds to fund unexpected expenses? Yeah, I've been locking in the 1.8-2.0% real by buying individual TIPS from 2045 to 2047 recently. I decided that I wanted to extended my TIPS duration longer than the ~7 years offered by SCHP/DIPSX, and that I did not want to pay 0.20% a year for LTPZ. I intend to hold these to maturity, though I plan to reduce my average duration slowly over time. I figure that paying a one time cost to buy them was worth it to avoid ongoing management fees. I also think that I have a reasonable chance of outperforming som...

Awesome, thanks squirrel1963.