Search found 199 matches

by villars
Tue Nov 06, 2018 1:07 pm
Forum: Investing - Theory, News & General
Topic: Larry Swedroe: What To Do When An Investment Strategy Performs Poorly
Replies: 11
Views: 1907

Re: Larry Swedroe: What To Do When An Investment Strategy Performs Poorly

asif408 wrote:
Tue Nov 06, 2018 10:42 am

As goblue cited above, temperament and patience are not qualities abundant among a good majority of Bogleheads.
:confused Are we reading the same board? Mantras of "Buy and Hold" , "Stay the Course" , "Don't time the market" are in every thread. If the BH's are not patient, who is?
by villars
Mon Oct 29, 2018 6:03 pm
Forum: Investing - Theory, News & General
Topic: 401k down 8% this month
Replies: 58
Views: 7219

Re: 401k down 8% this month

At the peak I was looking towards a big round number milestone by the end of the year. I even sent a bit extra to Vanguard "to get closer" . Alas it is not meant to be this year. Maybe next.
by villars
Thu Oct 11, 2018 7:31 pm
Forum: Personal Investments
Topic: Pre-Tax TIAA Traditional vs taxable VWITX
Replies: 5
Views: 565

Re: Pre-Tax TIAA Traditional vs taxable VWITX

Q: Where should I put my "bonds" investment in a pre-tax TIAA Traditional yielding 3.5% currently or taxable VWITX (SEC yield 2.56)? Standard answer is bonds go in Tax advantaged. Only reason to buy VWITX is if you anticipate running out of tax advantaged space for bonds by the time you retire. To ...
by villars
Thu Oct 11, 2018 6:48 pm
Forum: Personal Investments
Topic: 56-year-old beginning the Boglehead journey - portfolio & tax efficiency questions
Replies: 7
Views: 1165

Re: 56-year-old beginning the Boglehead journey - tax efficiency question

welcome to bogleheads. You buy an index fund of stocks ( either US , or international+US ) with the 197K . Most retirement accounts offer a fund indexed to the SP500 with reasonably low costs . As stocks outgrow bonds, you may run into the scenario where your entire tax advantaged space is full of b...
by villars
Thu Oct 11, 2018 10:23 am
Forum: Personal Investments
Topic: anybody sell I Bonds to buy something else?
Replies: 49
Views: 5706

Re: anybody sell I Bonds to buy something else?

No. I would have to pay tax on the interest accrued so far. And I would not have the chance to buy them back.
by villars
Thu Oct 11, 2018 10:20 am
Forum: Investing - Theory, News & General
Topic: Short Term Bond yield over 3%
Replies: 74
Views: 11463

Re: Short Term Bond yield over 3%

I was in my accounts today and noticed that the SEC yield on the Vanguard Short Term Bond Fund (Admiral: VBIRX) is 3.01% :happy Correct me if I'm wrong. But the only way the yield goes up on a bond fund in one day is if the price of the fund has dropped. It is not like the fund manager just purchas...
by villars
Wed Oct 10, 2018 10:19 am
Forum: Investing - Theory, News & General
Topic: U.S. stocks in free fall
Replies: 12408
Views: 2142695

Re: Stocks tumbling?

The only thing I could find was this https://tickertape.tdameritrade.com/market-news/rates-tick-up-and-inflation-data-rise-17038 about new data: " Some data checked in early Wednesday, with the headline and core producer price index for September both rising 0.2%. That was in line with Wall Street a...
by villars
Sun Oct 07, 2018 7:36 pm
Forum: Personal Finance (Not Investing)
Topic: Can you give "spousal" health insurance to a non-spouse?
Replies: 31
Views: 1710

Re: Can you give "spousal" health insurance to a non-spouse?

While I feel for your friend, there is a reason why you can't extend benefits to a non-relative: adverse selection. If insurance allowed everyone "one designated other benefeciary", everyone would pick the sickest friend they know.
by villars
Sat Oct 06, 2018 4:09 pm
Forum: Investing - Theory, News & General
Topic: Barron's Making the Case for Gold
Replies: 153
Views: 14208

Re: Barron's Making the Case for Gold

Gold's allure is its long history as an accepted medium of exchange and store of value ( i.e money). Throughout history, only silver has occasionally challenged Gold on this account. Take away Gold's utility as potential money , and its value would plummet . Its uses in jewelry and electronics do no...
by villars
Thu Sep 27, 2018 7:18 pm
Forum: Personal Investments
Topic: Fund Placement for Tax-Efficiency vs. Growth
Replies: 4
Views: 491

Re: Fund Placement for Tax-Efficiency vs. Growth

When choosing my asset allocation, I tried to place my funds according to tax-efficiency as described on the Wiki. But recently, a financial advisor (during a brief chat) suggested it would help me to diversify in case there's a lot of growth, for example. The Wiki seems to support this in one para...
by villars
Wed Sep 19, 2018 10:14 pm
Forum: Investing - Theory, News & General
Topic: How likely is it for a corporate bond rated BAA3/BBB to fail?
Replies: 16
Views: 1729

Re: How likely is it for a corporate bond rated BAA3/BBB to fail?

Right now, the reward just isn't there. https://fred.stlouisfed.org/series/BAMLC0A4CBBB I read that all the time on this board. Corporate bonds are not worth the risk, and "take risk on the equity side" If that is true, wouldn't the lack of demand cause the price of corporate bonds to drop ( ie yie...
by villars
Tue Sep 18, 2018 11:04 pm
Forum: Personal Consumer Issues
Topic: What is your single most expensive mistake?
Replies: 293
Views: 27729

Re: What is your single most expensive mistake?

Financing home at 100% in 2006. Trying to sell it in 2009 while underwater. Not contributing to 401k from 2010 to 2013 because " I learned from my mistake" and this time I was going to have a 20% down payment. :oops: On the good side, I was about to sign up with a financial advisor in 2013 when he r...
by villars
Sun Sep 16, 2018 2:49 pm
Forum: Personal Investments
Topic: Am I "buying high" if I transfer stable value funds over to stock index fund now?
Replies: 26
Views: 2190

Re: Am I "buying high" if I transfer stable value funds over to stock index fund now?

This is a similar question to DCA vs lump sum. Only difference is that the downside of putting the 50% in stocks and then suffering a correction is worse because you are entering retirement.

My advice is to put 25% of portfolio is stocks now. Another 25% in one year.
by villars
Thu Sep 13, 2018 10:00 pm
Forum: Investing - Theory, News & General
Topic: Mother, can I trust the stock market?
Replies: 19
Views: 2461

Re: Mother, can I trust the stock market?

My understanding is that the stocks are actually in the hands of a custodian. And that financial institutions have to run periodic 3rd party audits to confirm that. At least that is what 401k plans seem to do. If someone lies and defrauds stockholders, SIPC will step in to reimburse them. It did so ...
by villars
Sun Sep 09, 2018 5:51 pm
Forum: Personal Investments
Topic: What happens when a country goes from VWO -> VEA?
Replies: 14
Views: 1237

Re: What happens when a country goes from VWO -> VEA?

.....If so I wonder if a better approach is to do VXUS instead of VEA+VWO. But my concern is VXUS has a much lower AUM than VEA and VWO, which for taxable could mean a higher chance of changes (and therefore realizing capital gains) down the road. I don't understand what OP meant by this sentence. ...
by villars
Sun Sep 09, 2018 5:43 pm
Forum: Personal Investments
Topic: Non discrimination testing and Mega back door
Replies: 2
Views: 360

Non discrimination testing and Mega back door

My employer's 401k plan does not have the requirements needed to do the Mega back door Roth . Specifically the plan does not allow after-tax contributions. Employer is open to the idea of amending the plan. However, there is a concern that the after-tax contributions would all come from the highly c...
by villars
Wed Sep 05, 2018 12:14 pm
Forum: Investing - Theory, News & General
Topic: 100% Bonds to boost returns?
Replies: 61
Views: 7226

Re: 100% Bonds to boost returns?

As you know, 10 year equity return forecasts are quite low. ..... Given that stocks are riskier, it seems only logical to be 100% bonds at this time. Maybe a splash of equities for diversification sake, but no more than a 'splash' (as Bogle likes to say). My gut feeling is that this is not logical ...
by villars
Tue Sep 04, 2018 9:44 pm
Forum: Personal Consumer Issues
Topic: How to "waste" money on groceries?
Replies: 109
Views: 10161

Re: How to "waste" money on groceries?

Go grocery shopping when you are hungry. You will buy stuff that looks appetizing at the time, but that you will throw out in 2 weeks, untouched.
by villars
Tue Sep 04, 2018 9:10 pm
Forum: Personal Consumer Issues
Topic: How much do you spend on kids extracurriculars?
Replies: 85
Views: 5408

Re: How much do you spend on kids extracurriculars?

TomatoTomahto wrote:
Mon Sep 03, 2018 12:47 pm
Just don’t let them become ice hockey goalies.
Or a figure skater. Coaches, ice time and competition travel for DD have eaten up the cash flow freed up by paying off the mortgage.
But I would not have it any other way.. :happy
by villars
Thu Aug 30, 2018 10:09 pm
Forum: Personal Consumer Issues
Topic: Let a property management company to manage your house?
Replies: 10
Views: 1705

Re: Let a property management company to manage your house?

Fees are typical. My property manager used to charge 10% of rent, but did not charge extra for marketing. They also offered "eviction insurance " for an extra fee . I said "used to" because I was very happy when we finally sold the house after renting for 4 years. Worst part was dreading any email w...
by villars
Wed Aug 29, 2018 8:00 pm
Forum: Personal Consumer Issues
Topic: Microsoft adding stock quote functionality to Excel
Replies: 12
Views: 5370

Re: Microsoft adding stock quote functionality to Excel

I've been using Google spreadsheet, free and easy to implement. Except that the Googlefinance(".inx") function which used to give SP500 value is not working anymore. I have to manually type the SP500 myself now :annoyed ( i use it to estimate funds in 401k that do not have tickers but track the SP5...
by villars
Sun Aug 26, 2018 6:04 pm
Forum: Investing - Theory, News & General
Topic: Which bond index fund best in taxable acct?
Replies: 22
Views: 2832

Re: Which bond index fund best in taxable acct?

I am in similar tax bracket. I usually buy tax exempt munis with new savings to keep allocation at target. I have occasionally renalanced stocks to bonds in one of my 401k accounts , but that is not my usual approach for 3 reasons : 1. Laziness. Easier to log into vanguard and buy muni fund than log...
by villars
Sun Aug 26, 2018 5:48 pm
Forum: Investing - Theory, News & General
Topic: The first million is the hardest?
Replies: 46
Views: 10002

Re: The first million is the hardest?

I have found a small downside to having accumulated a significant amount. When market gyrations dwarf your contributions it is harder to maintain the discipline to save.
by villars
Sun Aug 26, 2018 4:15 pm
Forum: Investing - Theory, News & General
Topic: What happens to TIPS if both inflation AND interest rates rise?
Replies: 8
Views: 908

Re: What happens to TIPS if both inflation AND interest rates rise?

c) Are you more interested in future purchasing power or dollar values? Many of us only care about purchasing power, so TIPS removes a variable. If you are only interested in dollar value, then TIPS adds a variable. I am interested in purchasing power of course. Thing is that my IPS ( really an exc...
by villars
Sun Aug 26, 2018 4:07 pm
Forum: Investing - Theory, News & General
Topic: What happens to TIPS if both inflation AND interest rates rise?
Replies: 8
Views: 908

Re: What happens to TIPS if both inflation AND interest rates rise?

Think in real dollars....If the real interest rate (inflation-corrected) doesn't change, nothing happens. If it does change, TIPS are affected by the same way interest rates affect any other bond fund, it's just that what matters is the real interest rate, not the nominal interest rate. THank you f...
by villars
Sun Aug 26, 2018 12:46 am
Forum: Personal Finance (Not Investing)
Topic: Varying college costs across kids in the same family
Replies: 92
Views: 5534

Re: Varying college costs across kids in the same family

To illustrate why not to have a hard and fast rule: You are child B. Child A has always seemed brilliant and succeeded in everything they have done. Perfect grades in school. Full ride at prestigious university. Accepted a very high paying job after graduation. You, child B, have struggled with edu...
by villars
Sun Aug 26, 2018 12:12 am
Forum: Investing - Theory, News & General
Topic: Call the Top!
Replies: 101
Views: 12898

Re: Call the Top!

3560.5
by villars
Sat Aug 25, 2018 11:17 am
Forum: Investing - Theory, News & General
Topic: What happens to TIPS if both inflation AND interest rates rise?
Replies: 8
Views: 908

What happens to TIPS if both inflation AND interest rates rise?

I just bought a small amount of TIPS ( VIPSX to be precise, duration 7.8 years per Vanguard website). Then I read the news that the Fed would continue to raise rates slowly . And it got me wondering what would happen if the Fed starts raising rates quickly ? In my (limited) understanding of bonds, I...
by villars
Sun Sep 17, 2017 2:32 pm
Forum: Personal Finance (Not Investing)
Topic: Best way to dispute/correct IRS bill
Replies: 18
Views: 2313

Resolution Re: Best way to dispute/correct IRS bill

OP here. Thanks for all the replies. A final update. I ended up trying to contact IRS by phone. Kept going from menu to menu option and never spoke to a real person. So I gave up on the phone, and wrote a letter where I said I agree partially with the IRS assessment, that I owed additional tax, but ...
by villars
Fri Jul 14, 2017 9:18 am
Forum: Personal Finance (Not Investing)
Topic: Do you consider business travel to be a perk or a burden?
Replies: 117
Views: 11006

Re: Do you consider business travel to be a perk or a burden?

as many said, when you are young and childless , it's a perk. When kids arrive it is burden. Was a factor in my quitting my last job 8 years ago. Getting ahead in that career required travel to meetings etc and meant missing out on family time.
by villars
Mon Jul 03, 2017 1:42 pm
Forum: Personal Finance (Not Investing)
Topic: Best way to dispute/correct IRS bill
Replies: 18
Views: 2313

Re: Best way to dispute/correct IRS bill

How many Vanguard accounts do you have? Brokerage and Roth. I only buy VG mutual funds, no ETFs. The other possibility is that VG upgraded you to a brokerage account during 2015. In which case you could have had only one account but the regular 1099-DIV covers the first part of the year and the Con...
by villars
Sun Jul 02, 2017 11:21 pm
Forum: Personal Finance (Not Investing)
Topic: Best way to dispute/correct IRS bill
Replies: 18
Views: 2313

Re: Best way to dispute/correct IRS bill

Look at lines 9a and 9b of your 2015 return...... My guess is the person that prepared you tax return failed to enter anything on line 9a. Filing a 1040X is quite simple. You can get the form and instructions online from the IRS. Thank you for feedback. OK , I looked. First of all, it turns out I a...
by villars
Sun Jul 02, 2017 9:00 pm
Forum: Personal Finance (Not Investing)
Topic: Best way to dispute/correct IRS bill
Replies: 18
Views: 2313

Best way to dispute/correct IRS bill

I got a notice from IRS for tax year 2015 saying I owe about $1730 due to unreported dividends, mostly from my taxable vanguard accounts. In the letter the IRS sent me they have an "Explanation" of changes, where they correctly list the accounts under Qualified Dividends heading ( and correctly say ...
by villars
Thu Apr 20, 2017 4:01 pm
Forum: Investing - Theory, News & General
Topic: Anybody purposely loading up on mortgage debt?
Replies: 107
Views: 12577

Re: Anybody purposely loading up on mortgage debt?

boknows wrote:
zotty wrote:It doesn't get mentioned much, but outright home ownership of your family home is one of the best asset protection moves you can make with taxable money.
Explain this to me like I'm young and ignorant? :confused
In most states, creditors cannot go after your home. I.e protection against lawsuits
by villars
Tue Apr 11, 2017 10:18 pm
Forum: Personal Finance (Not Investing)
Topic: Milestone reached.
Replies: 14
Views: 3031

Re: Milestone reached.

random_walker_77 wrote:
(Apart from your spouse, don't tell anyone you know in real life about this milestone!)
Of course, which is why I had to share this here :beer
by villars
Tue Apr 11, 2017 10:16 pm
Forum: Personal Finance (Not Investing)
Topic: Milestone reached.
Replies: 14
Views: 3031

Re: Milestone reached.

Congrats! You've come a long way in a few short years. Now, not meaning to ruin a good celebration, but are you mentally prepared for a 50% drop in stocks? Will you stick with your saving and investing plan if that happens, which might include exchanging from bonds to stocks to maintain your AA as ...
by villars
Sun Apr 09, 2017 7:43 pm
Forum: Personal Finance (Not Investing)
Topic: Milestone reached.
Replies: 14
Views: 3031

Milestone reached.

Just wanted to share reaching one of my financial milestones. I had just updated my retirement portfolio spreadsheet and the total was 1,008,000 . :D One of my earliest posts on Bogleheads ended with this advice from user Saving$: Set a goal of $1 mil total in taxable/non taxable accounts and mortga...
by villars
Sat Nov 19, 2016 9:10 pm
Forum: Personal Finance (Not Investing)
Topic: how much to save for retirement
Replies: 30
Views: 5786

Re: how much to save for retirement

to pick which specialty to go into. I will be 38-39 when I actually have a sizeable income ($200-300k depending on the field) and thus will have also $350k in loans Do those 350K in loans include a house or are they mostly student loans? In other words, if your net worth is negative 350K, you need ...
by villars
Tue Nov 15, 2016 2:54 pm
Forum: Investing - Theory, News & General
Topic: Muni bonds are getting killed. Are you bailing out?
Replies: 88
Views: 19605

Re: Muni bonds are getting killed. Are you bailing out?

THanks for the heads up . I was not paying attention to Munis. Per my AA, I need to buy bonds with next purchase . So I will be buying some Munis now that yield is going up slightly. My short term goal is to hit the 50,000 number on VWITX so I can get the Admiral version ( VWIUX is the ticker I thin...
by villars
Fri Oct 28, 2016 5:26 pm
Forum: Investing - Theory, News & General
Topic: Why Doesn't the DOL Understan the Term "Fiduciary"?
Replies: 21
Views: 3837

Re: Why Doesn't the DOL Understan the Term "Fiduciary"?

I can see this rule backfiring. Because an advistor can now be sued for being a bad fiduciary, they will need to get malpractice insurance ( kind of like doctors have to). So advisors will have increased costs they have to cover, and it will discourage people from entering the business , driving awa...
by villars
Fri Oct 28, 2016 3:58 pm
Forum: Personal Investments
Topic: Worried about negative bond real rates
Replies: 1
Views: 773

Worried about negative bond real rates

I have about 16% of my AA to bonds, with target of 50/50 by retirement. I think of the bond portion of my portfolio as money that is not at (significant) risk, kind of "off the table and not in play anymore". The bonds are mostly intermediate duration ( either vanguard total bond, pmico's PTTRX or V...
by villars
Thu Oct 27, 2016 4:12 pm
Forum: Personal Finance (Not Investing)
Topic: Debt Free... Now What?
Replies: 28
Views: 4505

Re: Debt Free... Now What?

Congratulations on paying off your debt , and on the successful company sale.

It sounds like you need a well deserved vacation. Also google "the U curve". You are a bit young for that, but some of the signs fit.
by villars
Wed Oct 26, 2016 8:43 pm
Forum: Personal Investments
Topic: next bond purchase: iBonds vs Pimco vs Munis
Replies: 4
Views: 1145

Re: next bond purchase: iBonds vs Pimco vs Munis

I'd choose the muni. Why? --Because I'm already using munis. --Munis are simpler to manage than I bonds and have no annual contribution limit. --Munis pair nicely with TSM/TISM to extend 3-fund portfolio into taxable investing---no need to rejigger other holdings (401k,...) to maintain AA. --VWITX ...
by villars
Tue Oct 25, 2016 9:12 pm
Forum: Personal Finance (Not Investing)
Topic: Are Pre-existing conditions still a thing?
Replies: 8
Views: 1686

Re: Are Pre-existing conditions still a thing?

Don't forget to check if your doctors are in network on the new plan. My understanding is that employers/ insurance companies can still have a 90-day waiting period before benefits kick in once you sign up, regardless of pre-existing conditions. If that is the case, make sure you do your follow-up C...
by villars
Tue Oct 25, 2016 8:48 pm
Forum: Personal Investments
Topic: Please help with mistake in backdoor Roth 8606 for last year.
Replies: 3
Views: 485

Re: Please help with mistake in backdoor Roth 8606 for last year.

I'm not an expert on this , so caveat emptor. My understanding is this : - you contributed $5,500 in Feb 2016 for tax year 2015 . This is non-deductible traditional IRA contribution and should have been reported in the 2015 tax return - you converted it to Roth in Feb 2016 . So you should get a 1099...
by villars
Tue Oct 25, 2016 8:36 pm
Forum: Personal Investments
Topic: next bond purchase: iBonds vs Pimco vs Munis
Replies: 4
Views: 1145

next bond purchase: iBonds vs Pimco vs Munis

Now that I finally paid off the mortgage :D , my IPS says I should invest the next $10,000 in bonds. choices are : 1) iBonds 2) Pimco total return bond fund ( PTTRX ) in 401k ( I would exchange an SP500 index fund in the 401k, and buy equivalent equities in taxable with the $10,000) 3) Tax exempt Mu...
by villars
Tue Oct 25, 2016 1:53 pm
Forum: Personal Investments
Topic: A simple TLH strategy
Replies: 20
Views: 2310

Re: A simple TLH strategy

livesoft wrote:
You might consider a different strategy though: TLH when a big drop has occurred and not just at year end.
^ this

The February 2016 drop ( SP down to 1858 ) was very good to me - I now have 15K+ of "losses" to carry over the next few years.
by villars
Mon Oct 24, 2016 9:49 pm
Forum: Personal Finance (Not Investing)
Topic: Annual tax maneuvers list
Replies: 14
Views: 2021

Re: Annual tax maneuvers list

Folks still find iBonds to be worth the investment? Yes. There are whole threads about iBonds making the rounds. In my case, I am building a cache of iBonds to protect against possibility of future high inflation in a low interest rate environment ( i.e. where bonds have negative real rates and sto...
by villars
Mon Oct 24, 2016 9:37 pm
Forum: Personal Finance (Not Investing)
Topic: Annual tax maneuvers list
Replies: 14
Views: 2021

Re: Annual tax maneuvers list

This is good when it works.... I have tried (i.e. done sample tax returns) and it sure doesn't work with AMT taxes in California. The local LA County tax dudes won't accept two years taxes at once, so the most I could bundle is 1.5 years once, then .5 alternately. .....:twisted: :annoyed You're rig...
by villars
Mon Oct 24, 2016 9:00 pm
Forum: Personal Finance (Not Investing)
Topic: Healthcare costs and self funding
Replies: 96
Views: 11343

Re: Healthcare costs and self funding

In my experience, the largest value in having medical insurance is the negotiated prices the insurance company can obtain. ^^^ I'm not sure I fully agree with this: 1) I have a HDHP+HSA and I negotiate medical costs myself. If you explain to the provider that you are on a HDHP and paying largely 'o...