Search found 2624 matches

by BigJohn
Mon Mar 18, 2024 9:23 pm
Forum: Personal Investments
Topic: A warning for using Fully Paid Lending Programs
Replies: 39
Views: 11529

Re: A warning for using Fully Paid Lending Programs

White Coat Investor wrote: Mon Mar 18, 2024 3:42 pm Vanguard is apparently starting one of these up. I just enrolled and will let you know how it goes. Interestingly, they give you a bit of a credit/extra payment to offset the effect of getting payments in lieu of a dividend. Not sure how many people are going to want to borrow my VTI, but I guess we'll see.
I got an “invitation” to enroll from VG today. Noted the extra payment but worried that it won’t be close to adequate if either of my muni bonds funds get borrowed. Will be interested to hear how this goes for you, thanks.
by BigJohn
Tue Feb 20, 2024 10:57 pm
Forum: Investing - Theory, News & General
Topic: Share your 'reverse glidepath' stories!
Replies: 26
Views: 4625

Re: Share your 'reverse glidepath' stories!

Retired 9 years ago at age 58. 5 years before that I was at about a 20% bond allocation. Used Bernstein’s LMP concept to set my bond allocation at retirement to 65%. Moved in that direction slowly over the 5 years until retirement. Made a bigger move to that target with my lump sum pension rollover into my IRA. I’ve let that slowly drift down to 60% bonds pjust by less aggressive rebalancing.

I’m probably through the worst of the sequence of return risk period with 3 years left until I claim SS when my withdrawal rate steps down. I expect I’ll continue the drift down over the next few years and then hold somewhere in the 40-50% bond range. If stocks went on sale with a significant stock market correction, I might go there more quickly.
by BigJohn
Sun Feb 18, 2024 5:05 pm
Forum: Personal Finance (Not Investing)
Topic: Should turbotax create a 8606 form for a Rollover IRA to Roth IRA conversion?
Replies: 5
Views: 925

Re: Should turbotax create a 8606 form for a Rollover IRA to Roth IRA conversion?

I’ve done a Roth conversion every year for the past 6 years. Always from a rollover IRA with no cost basis. TurboTax has always generated a 8606 form, Part II. My read of the form and instructions is that this is required whether you have a cost basis or not. My guess is that you didn’t check all the boxes so that TurboTax knows it’s a Roth conversion.
by BigJohn
Thu Feb 15, 2024 10:29 pm
Forum: Personal Finance (Not Investing)
Topic: Imputed Income/Turbo Tax Questions
Replies: 12
Views: 1666

Re: Imputed Income/Turbo Tax Questions

I answered yes this year and the income moved from W-2 wages on line 1 to other income from one of the schedules. Taxable income the same either way so don’t think it matters. My imputed income has always been in box 11. Well it probably does matter for one thing, W2 earned income can be used for IRA thus reducing taxable income. I don't remember getting the TT question prior years. Ah, but the difference this year was TT allowed me to photographically enter the W2 via pdf so I am not sure I always filled out Line 11 properly. Thanks above for responses! I thought nobody responded but I was wrong. I checked that out when I retired and this started. Definitely not considered earned income so no IRA contributions based on this anyway. Not su...
by BigJohn
Wed Feb 14, 2024 10:16 pm
Forum: Personal Finance (Not Investing)
Topic: Imputed Income/Turbo Tax Questions
Replies: 12
Views: 1666

Re: Imputed Income/Turbo Tax Questions

I answered yes this year and the income moved from W-2 wages on line 1 to other income from one of the schedules. Taxable income the same either way so don’t think it matters. My imputed income has always been in box 11. Well it probably does matter for one thing, W2 earned income can be used for IRA thus reducing taxable income. I don't remember getting the TT question prior years. Ah, but the difference this year was TT allowed me to photographically enter the W2 via pdf so I am not sure I always filled out Line 11 properly. Thanks above for responses! I thought nobody responded but I was wrong. I checked that out when I retired and this started. Definitely not considered earned income so no IRA contributions based on this anyway.
by BigJohn
Fri Feb 09, 2024 9:32 pm
Forum: Personal Finance (Not Investing)
Topic: Imputed Income/Turbo Tax Questions
Replies: 12
Views: 1666

Re: Imputed Income/Turbo Tax Questions

I answered yes this year and the income moved from W-2 wages on line 1 to other income from one of the schedules. Taxable income the same either way so don’t think it matters.

My imputed income has always been in box 11.
by BigJohn
Sat Feb 03, 2024 1:00 pm
Forum: Personal Finance (Not Investing)
Topic: Selling Scrap Silver
Replies: 21
Views: 2900

Re: Selling Scrap Silver

This is in fact my situation. Volunteered to work liquidation of my father’s collection. He looked up retail price and was convinced that was what the collection was worth. Even worse, that’s the expectation he set with others. I knew better and have been focused on finding the sweet spot between giving away and wasting time tilting at windmills. While some of what he had was in fact genuinely rare and is worth being professionally graded, the vast majority are not. A bit of reading and a few phone calls have convinced me that these “rules” represent a reasonable sweet spot on those coins. Any comments or suggestions welcome. 1) If it’s a post 1964 clad coin, just take it to the bank no matter how great it looks. 2) The bank is also the ri...
by BigJohn
Sat Feb 03, 2024 4:12 am
Forum: Personal Finance (Not Investing)
Topic: Selling Scrap Silver
Replies: 21
Views: 2900

Re: Selling Scrap Silver

I've appraised a bunch of old coin "collections" for friends and relatives (usually from their deceased parents). Typically 99.X% of the coins are worth face value (if not containing precious metal) or 90-95% of spot metal value if they contain silver or gold. The reason genuinely rare gold or silver coins are worth a lot is because they are in fact rare both now as well as being rare back in the day. You can waste a huge amount of time trying to get more than face value for wheat pennies or $2 bills but good luck with that. This is in fact my situation. Volunteered to work liquidation of my father’s collection. He looked up retail price and was convinced that was what the collection was worth. Even worse, that’s the expectation ...
by BigJohn
Fri Feb 02, 2024 7:53 pm
Forum: Personal Finance (Not Investing)
Topic: Selling Scrap Silver
Replies: 21
Views: 2900

Re: Selling Scrap Silver

Thanks for additional info beyond scrap silver. I have other stuff to eventually sell like a fair number of Eisenhower’s and wheat pennies. I was wondering if I was going to find any takers. Sounds like a trip to the bank might be the best answer for lower value, not professionally graded coins. Oh well, as I always say…. It’s only worth what someone is willing to pay for it.
by BigJohn
Fri Feb 02, 2024 2:14 pm
Forum: Personal Finance (Not Investing)
Topic: Selling Scrap Silver
Replies: 21
Views: 2900

Re: Selling Scrap Silver

Thanks all for the info and ideas. Somewhere in the 90-95% of spot was kind of what I was expecting so no surprises there. Selling commemoratives for silver value as I recognize there is no significant numismatic value and I’m not going the e-Bay route.
by BigJohn
Fri Feb 02, 2024 7:21 am
Forum: Personal Finance (Not Investing)
Topic: Selling Scrap Silver
Replies: 21
Views: 2900

Selling Scrap Silver

I have $200-300 (face value) in 90% silver US coins with no numismatic value to sell. I also have some commemorative silver coins that I want to sell. I’m looking to understand the value and have a few questions.

Anyone have experience with what percent of spot price a local dealer will pay for the silver content of the 90% coins?

Is that answer any different for the commemorative issues that can be melted down?

Anyone used APMEX online for doing this as a better option to a local dealer?

Thanks in advance for any help.
by BigJohn
Mon Jan 29, 2024 11:02 pm
Forum: Personal Investments
Topic: Total Bond (BND) vs Intermediate-Term Index (BIV)
Replies: 9
Views: 1354

Re: Total Bond (BND) vs Intermediate-Term Index (BIV)

I had this decision to make about 6 years ago. I honestly think either choice will give a result so similar that it won’t really matter. However, a choice must be made nonetheless. I went with IT bond index for two reasons. One was the mortgage back securities in total bond. The other was that the composition of total bond can and has varied significantly over time. Somewhere on the site is discussion with the graph and I was frankly surprised at the variability. I felt better about the more constant composition of the IT bond index although again, I think the difference is likely to be immaterial in the long run.
by BigJohn
Sat Jan 27, 2024 6:57 pm
Forum: Personal Finance (Not Investing)
Topic: State of Louisiana: Income Tax Return
Replies: 2
Views: 432

Re: State of Louisiana: Income Tax Return

I’m an AARP Tax Aide volunteer in Louisiana and we use Tax Slayer Pro Online to prepare returns. Hard to give any advice without a bit more info. Can you give me some idea of the types of income your aunt has? Is she a retiree of a Louisiana state or municipal organization?
by BigJohn
Wed Jan 17, 2024 10:07 pm
Forum: Personal Investments
Topic: Banks Cashing paper Savings Bonds
Replies: 11
Views: 1651

Re: Banks Cashing paper Savings Bonds

Had this problem with Chase a few months ago. Like you, couldn’t find a local bank so ended up using the Treasury’s mail in redemption. More of a pain than cashing at a bank and it takes a few weeks but it got the job done if you can’t find any other way.
by BigJohn
Tue Dec 05, 2023 12:42 pm
Forum: Personal Finance (Not Investing)
Topic: Medigap turning 65 AARP UHC or?
Replies: 17
Views: 2199

Re: Medigap turning 65 AARP UHC or?

Signed up for Plan G with UHC 2+ years ago and am very satisfied. I pay my annual deductible and then no worries or paperwork. Recently had an outpatient procedure and the billing department never even called because it was 100% covered.
by BigJohn
Tue Nov 21, 2023 11:32 pm
Forum: Personal Finance (Not Investing)
Topic: Becoming a CFP
Replies: 25
Views: 4132

Re: Becoming a CFP

I gave some thought at one time to pursuing FP as a second career, but from the CFPsI talked to, it sounded as though a huge part of the job was not financial planning, but SELLING financial planning. And I hate selling. I had similar thoughts as I was about to retire from the Navy years ago. I answered an ad from Legg-Mason (was living right near Baltimore at the time). I had a long conversation with a retired naval officer who was working for them as a “FP”. He was very straight with me about it being primarily a sales job and said that my just-retired or about-to-retire fellow officers would be a good starting point for building a clientele. I reached the conclusion pretty quickly that this wasn’t for me and told him so. True to his wor...
by BigJohn
Fri Nov 10, 2023 7:56 pm
Forum: Personal Finance (Not Investing)
Topic: Big News For Those On FEHB BCBS And Other Plans
Replies: 156
Views: 32838

Re: Big News For Those On FEHB BCBS And Other Plans

I saw a letter from BCBS envelope market Medicare on USPS informed delivery for 10/30. I never received it. For those who also received a letter around that time, did it indicate your opt out status or anything else of importance? Thanks If you go to your BCBS FEP site (you can set up your account if it's like it used to be), is there a place you can view/reprint documents/letters sent to you? Or, BCBS may be able to send you an email with attachment? I emailed them a request for a copy and was informed they could not provide one. Suggested I call a particular number for the information. That was the contact which entered my membership number and said I was not in the system. I speculate that maybe since I do not have Medicare B, I am not ...
by BigJohn
Fri Oct 20, 2023 8:47 pm
Forum: Personal Finance (Not Investing)
Topic: If I don't sign up Megacorp advantage plan, spousal health benefits drops, can she get special enrollment?
Replies: 18
Views: 2312

Re: Mega-corp medicare advantage plan, guaranteed issue rights and 12 month trial

My former mega corp made this type of change two years ago and it does put people in your situation (younger spouse not the retiree) in a very difficult position. Based on my experience and that of other retirees I know I’d make this comment. Companies do this to save $$ and unhappy retirees aren’t a huge liability. Their MA plan may start out looking great but in all likelihood, changes for the worse will be following. In two years there have already been several changes to our plan that downgraded care choices and increased costs. You don’t have to look far to find this pattern at lots of mega corps. So, yes it’s expensive but your wife being on ACA for a couple of years maybe the right answer to preserve the choice you want. The choice w...
by BigJohn
Sat Sep 16, 2023 10:56 pm
Forum: Investing - Theory, News & General
Topic: Is Vanguard's Yodlee Aggregator Secure?
Replies: 20
Views: 3814

Re: Is Vanguard's Yodlee Aggregator Secure?

Gaston wrote: Wed Sep 13, 2023 6:04 pm
typical.investor wrote: Wed Sep 13, 2023 4:36 pm And you do taxes by hand without importing data?
Yes, I do. I download my 1099’s, then manually enter the summary data into TurboTax. Manual entry of summary data takes about 2 minutes per 1099, regardless of the number of holdings one might have within an account.
I’m with Gaston and others. I would never give an aggregator or tax software the information required to log onto any of my financial accounts.
by BigJohn
Thu Sep 14, 2023 11:32 am
Forum: Personal Finance (Not Investing)
Topic: Liquidating Coin Collection
Replies: 18
Views: 2758

Re: Liquidating Coin Collection

Many thanks for all the info and suggestions. To answer a few questions.. The collection is in mylar/paper/soft plastic sleeves and was graded and/or verified by my father. A very few coins are in the hard plastic holders graded by a third party. With that said, he was very knowledgably and meticulous so I don't believe they are overrated. However, I recognize that the BU coins would likely need to be professionally graded on the 60-70 scale in order to get the best value. Most of the value is in a few collections (Morgan dollars, Peace dollars and Mercury dimes). Looking to take my time to try to get the most value with these. Based on responses and my own thoughts, maybe an auction house that specializes in coins. There are a lot of other...
by BigJohn
Wed Sep 13, 2023 11:35 am
Forum: Personal Finance (Not Investing)
Topic: Liquidating Coin Collection
Replies: 18
Views: 2758

Liquidating Coin Collection

My father was an avid and expert coin collector for 50+ years. He recently passed away and we are looking to liquidate some portions of his collection. The collection is fairly large and diverse, mostly silver coins (dollars, quarters and dimes) with a little gold and paper. I have a detailed inventory including type, grade as well as well as die variety. He last did a complete valuation in 2020 and the total was in the low six figures. I know a bit about coin collecting but am not the expert my father was. Given the value, my intent would be to at least get an offer from 3-4 different places. I’m also planning to sell in complete sets (ie all the Morgan dollars) rather than coin by coin. Looking for anyone with some experience/expertise to...
by BigJohn
Sat Sep 02, 2023 8:49 pm
Forum: Personal Consumer Issues
Topic: Good Modern Science Fiction
Replies: 760
Views: 149448

Re: Good Modern Science Fiction

...I finished the Bobiverse series last week. Book 5 is in progress, but there's no publication date. I'm not sure I'd want to continue, as Book 4 seemed to complete the series. I then went to download the first book of the Silver Ships Series on my Kindle. Amazon knows me well. Just above the first book was "Purchase all 20 books, click here". So, I did. :) I find some of the concepts in this series similar to the Bobiverse. Or, maybe I've read way too many sci-fi books. What I did notice, however, is that neither author can match the writing style of C. J. Cherryh. They're just not in the same league. This is a space opera series. I like the perspective and it's yet another spin on human - artificial life form - alien interacti...
by BigJohn
Sun Aug 27, 2023 2:07 pm
Forum: Personal Investments
Topic: Roth Conversion
Replies: 62
Views: 5662

Re: Roth Conversion

After a lot of spreadsheet work years ago looking for the “right” answer on Roth conversion amounts I realized there are just too many unknowns (my future tax rate, kids future tax rate, longevity, returns, etc, etc,etc). So I adopted an approach that tries to keep my taxable income now with conversions about equal to what I expect it to be after SS and RMDs start. I update the outlook based on prior YE balances to set my conversion target for the current year. I know in hindsight this will either be too much or too little. However, I don’t think I’ll be way off in either direction and accept that’s the best I can do. May put me in a higher IRMAA tier now but likely avoids an even higher one later.
by BigJohn
Mon Aug 21, 2023 9:17 am
Forum: Personal Finance (Not Investing)
Topic: Vanguard wire transfer
Replies: 6
Views: 1361

Re: Vanguard wire transfer

jeam3131 wrote: Sun Aug 20, 2023 4:39 pm
BigJohn wrote: Sun Aug 20, 2023 4:12 pm Are you asking about an outgoing wire transfer or a ACH transfer to a permanently linked account. These aren’t the same thing.

I’ve done a wire transfer from VG settlement fund to pay off my mortgage so no problem there. It was a one time thing so my mortgage company was never linked to my account. Not sure whether the ACH fund transfer to permanently linked accounts has to be in the same name or not.
One time outgoing wire transfer to a bank account in someone else's name. Was there a cutoff time to have the funds sent same day?
Yes but it was a couple of years ago and I can’t recall the details. You’ll need to call or checkout the details in their on-line form.
by BigJohn
Sun Aug 20, 2023 4:12 pm
Forum: Personal Finance (Not Investing)
Topic: Vanguard wire transfer
Replies: 6
Views: 1361

Re: Vanguard wire transfer

Are you asking about an outgoing wire transfer or a ACH transfer to a permanently linked account. These aren’t the same thing.

I’ve done a wire transfer from VG settlement fund to pay off my mortgage so no problem there. It was a one time thing so my mortgage company was never linked to my account. Not sure whether the ACH fund transfer to permanently linked accounts has to be in the same name or not.
by BigJohn
Sun Jul 23, 2023 5:13 pm
Forum: Investing - Theory, News & General
Topic: Bonds in 2022
Replies: 26
Views: 1934

Re: Bonds in 2022

Bonds behaved exactly as expected when interest rates go up. Unfortunately, a lot of people didn’t understand how bonds really work. All they knew was “bonds are safe” with no real understanding of how they would behave under circumstances like 2022. Those people were surprised, disappointed and angry which is a lot of what you heard/read.
by BigJohn
Fri Jul 21, 2023 10:51 pm
Forum: Personal Investments
Topic: Roth conversions - is there a formula towards the right amount?
Replies: 174
Views: 14297

Re: Roth conversions - is there a formula towards the right amount?

After a lot of spreadsheet work years ago looking for the “right” answer on Roth conversion amounts I realized there are just too many unknowns. So I adopted an approach that tries to keep my taxable income now with conversions about equal to what I expect it to be after SS and RMDs start. I update the outlook based on prior YE balances to set my conversion target for the coming year. I know in hindsight this will either be too much or too little. However, I don’t think I’ll be way off in either direction and accept that’s the best I can do. May put me in a higher IRMAA tier now but likely avoids an even higher one later. This is probably the closest you can come to an optimal approach. I believe Kitces had an article on this .. but the me...
by BigJohn
Tue Jul 18, 2023 11:09 pm
Forum: Personal Investments
Topic: Roth conversions - is there a formula towards the right amount?
Replies: 174
Views: 14297

Re: Roth conversions - is there a formula towards the right amount?

After a lot of spreadsheet work years ago looking for the “right” answer on Roth conversion amounts I realized there are just too many unknowns. So I adopted an approach that tries to keep my taxable income now with conversions about equal to what I expect it to be after SS and RMDs start. I update the outlook based on prior YE balances to set my conversion target for the coming year. I know in hindsight this will either be too much or too little. However, I don’t think I’ll be way off in either direction and accept that’s the best I can do. May put me in a higher IRMAA tier now but likely avoids an even higher one later.
by BigJohn
Mon Jul 03, 2023 1:23 pm
Forum: Personal Investments
Topic: Mintax Cost Basis vs Specific Identification Cost Basis
Replies: 23
Views: 3398

Re: Mintax Cost Basis vs Specific Identification Cost Basis

FYI - I have a self managed account and sold shares in a taxable account this week for a new vehicle purchase - normally since I use SpecID, I am use to clicking on the lots I want to sell to minimize the cap gains impact but VG had a min tax feature I could use. I wrote down what I would have done and came up with a general ballpark number and had VG do min tax - it was very similar. I think I am going to use that going forward with my spec ID in a taxable account as I found this helpful and easier than picking through many lots... just posting to get other's viewpoints and to let people know that it was available in self managed accounts.... It’s been a while since I’ve sold but I’ve never seen that option before. However, last week I wa...
by BigJohn
Mon Jul 03, 2023 1:14 pm
Forum: Personal Investments
Topic: Trouble rebalancing (first world problem)
Replies: 23
Views: 1752

Re: Trouble rebalancing (first world problem)

Two things based on my experience…. You’re talking yourself into taking more risk because you believe the return will be better. Change “will be” to “might be” and you’ll get closer to understanding why VG is suggesting 50/50. Many recency bias given performance over the last few years? It can be equally difficult for many to rebalance to stocks after a big correction. I understand the emotion behind all this as I had difficulty doing both at times over the years. But, I pushed the emotion aside and rebalanced when I hit my predetermined triggers. How much longer are you planning to work? If you’re within 5-10 years of retirement, I’d stick with 60/40 and rebalance now. If >10 years, then letting stocks float up and taking more risk might b...
by BigJohn
Thu Jun 29, 2023 11:42 am
Forum: Investing - Theory, News & General
Topic: Bonds - Throw it all on the table!
Replies: 499
Views: 92671

Re: Bonds - Throw it all on the table!

I continue to be satisfied with the decision I made 6-7 years ago to move to 50/50 TIPS/VG Bond Index funds. Between higher dividends and rebalancing to stock from nominal bonds only, I’m at about 60% TIPS right now.
by BigJohn
Fri Jun 23, 2023 7:32 am
Forum: Personal Finance (Not Investing)
Topic: Vanguard’s brokerage accounts are a disaster [Dividend distributions preventing bank transfers]
Replies: 12
Views: 1839

Re: Vanguard’s brokerage accounts are a disaster

I let Vanguard finally convert me to their brokerage account and I am so disappointed in the website and functionality. The mobile app, is worse, it doesn’t even allow me to sell anything and send the proceeds elsewhere. But it goes beyond the user interface. When there is a dividend, everything gets messed up. For instance, total stock market has today as a dividend date. I have the dividends set to automatically go to my bank account. What does Vanguard show me? It says my settlement fund has a negative balance as a result of a pending transfer to my bank account (the dividend). It doesn’t say this is because of a dividend, instead it just shows the transfer and treats me like I’ve overdrawn my account (certain transactions are prohibite...
by BigJohn
Wed Jun 21, 2023 11:15 pm
Forum: Investing - Theory, News & General
Topic: New fee for Vanguard mutual [and brokerage accounts - July 2023 updates]
Replies: 2094
Views: 215551

Re: New fee for Vanguard mutual accounts [June 2023 update]

If paper is really that important to someone, that option is still available and $25 is an awfully small percentage of a $2M portfolio to get worked up about. These thread is full of misinformation like this... Even if I cared about paper (I've been e-deliver forever)... It's far from a $25 fee to the person... It's $25 Per FUND per ACCOUNT.... ....Insert replies from people with a single fund in a single IRA here.... Maybe calm down a bit? The person I was responding to clearly said they were on the brokerage platform. You can avoid the per fund fee by seeing the handwriting on the wall and converting from the MF platform. It’s seemed obvious for some time that VG is going to continue to make not converting more and more painful so this s...
by BigJohn
Wed Jun 14, 2023 3:52 pm
Forum: Personal Finance (Not Investing)
Topic: Vanguard intentionally delaying fund transfer to Fidelity DAF?
Replies: 31
Views: 4838

Re: Vanguard intentionally delaying fund transfer to Fidelity DAF?

Just an FYI on my experience with this. I opened a Fidelity DAF and tried this for the first time today. Based on the information here, I did both the pull at Fidelity and the push at Vanguard online with e-signatures. Instructions from retiredwhen were very helpful. About an hour later I got a call from Fidelity Charitable. They informed me that Vanguard is one of the firms that will not accept a DocuSigned form for this. So, I needed to submit a real signature page. I told the agent I had done a push from VG as well and we agreed that we'd wait a week and they'll call me if it doesn't show up. Not sure if VGs need for a real signature is a change in approach or just because it was the first time I was moving assets to a new account. Seems...
by BigJohn
Tue Jun 13, 2023 9:21 am
Forum: Personal Consumer Issues
Topic: [What TV Show Have You Recently Watched?]
Replies: 5973
Views: 689669

Re: [What TV Show Have You Recently Watched?]

I then stumbled on Black Mirror on Netflix. I've heard about the series for years but never watched. I watched the s1e1 titled The National Anthem (2011). Very bizarre and edgy. Twilight Zone on drugs? The s1e1 may not be for many viewers and certainly not for children, or watching with your mother. It involves the ransom demand for a princess and beastiality by the British PM. I haven't caught up to the most recent season but I'd say not to judge the whole series by that first episode. I personally found it way too "bizarre and edgy", almost didn't go further. Honestly the worst introductory episode choice I've ever seen. However, I tried a couple more and then continued. As always, some better than others but I generally found ...
by BigJohn
Sun Jun 11, 2023 8:16 am
Forum: Personal Investments
Topic: Brokerage Recommendations for Individual Municipal Bonds
Replies: 22
Views: 2259

Re: Brokerage Recommendations for Individual Municipal Bonds

What is wrong with VCLAX and VCADX ? VCLAX has an average stated maturity of 16.0 years and duration of 7.1 years. VCADX has an average stated maturity of 8.9 years and duration of 4.6 years. Since both of these are shorter than my 25-35 years in which I'd need this income, I'd have to take on reinvestment risk since future interest rates in 16.0 years could be above/below the current rate environment. Maybe you're trying to overfit the solution? To get exactly what you want you'll have to find high quality muni bonds with the right maturity and they all have to be non-callable or you still have some reinvestment risk. Things may have changed but back when I thought individual munis were a good idea, almost all were callable. On top of tha...
by BigJohn
Sat Jun 10, 2023 6:22 pm
Forum: Investing - Theory, News & General
Topic: New fee for Vanguard mutual [and brokerage accounts - July 2023 updates]
Replies: 2094
Views: 215551

Re: New fee for Vanguard mutual accounts [June 2023 update]

. Your comment, like many similar comments before it, reads as a suggestion that we owe Vanguard some loyalty. But loyalty is a two way street, and it's not rational to continue to show it when it isn't returned. Not that investing is ever a rational process, by the way: managing clients' emotions is a big part of what any financial advisor does. Vanguard is a big business and I came to the realization long ago that expecting loyal from any big business is unrealistic. Sure, it’s critically important and possible from small local businesses but no one should expect this from a major financial institution. I fully agree, you owe them no loyalty as well. So, if $25 or electronic statements are that big a deal, the go ahead and vote with your...
by BigJohn
Sat Jun 10, 2023 3:50 pm
Forum: Investing - Theory, News & General
Topic: New fee for Vanguard mutual [and brokerage accounts - July 2023 updates]
Replies: 2094
Views: 215551

Re: New fee for Vanguard mutual accounts [June 2023 update]

Will next year mean "move your money elsewhere or have 5 million to avoid the fee". so much for the little guy. I find this “little guy” mentality on this subject interesting. The world is full of examples of “volume discounts”. Sam’s Club and Costco use it as their business model. But even in other retail stores, the unit price is lower for larger packages. No one characterizes that as a punishment of the little guy. It just a fact of business that fixed costs stay largely the same regardless of size. In this context, a higher price for small volumes makes perfect sense. Maybe it's just inflation talking when the "higher price for small volumes" defines small volume as two million dollars. Maybe it's just like age brac...
by BigJohn
Sat Jun 10, 2023 11:26 am
Forum: Investing - Theory, News & General
Topic: New fee for Vanguard mutual [and brokerage accounts - July 2023 updates]
Replies: 2094
Views: 215551

Re: New fee for Vanguard mutual accounts [June 2023 update]

capran wrote: Sat Jun 10, 2023 10:37 am Will next year mean "move your money elsewhere or have 5 million to avoid the fee". so much for the little guy.
I find this “little guy” mentality on this subject interesting. The world is full of examples of “volume discounts”. Sam’s Club and Costco use it as their business model. But even in other retail stores, the unit price is lower for larger packages. No one characterizes that as a punishment of the little guy. It just a fact of business that fixed costs stay largely the same regardless of size. In this context, a higher price for small volumes makes perfect sense.
by BigJohn
Sat Jun 10, 2023 11:09 am
Forum: Personal Investments
Topic: Brokerage Recommendations for Individual Municipal Bonds
Replies: 22
Views: 2259

Re: Brokerage Recommendations for Individual Municipal Bonds

I didn’t work in the industry but agree with beyou based on personal experience. The risk diversity of a fund combined with the costs hidden in the price paid by individuals vs institutions for individual bonds are big drivers of my opinion.

Lots of prior forum discussions on this topic to get more details, just search using terms like muni, individual, fund, ladder, etc.
by BigJohn
Wed May 31, 2023 10:44 pm
Forum: Personal Investments
Topic: Roth conversion sanity check .... I think this is correct
Replies: 19
Views: 2207

Re: Roth conversion sanity check .... I think this is correct

Let's say your tax bill to the IRS is going to be $5,000 for the year. And you are at a point in life (age) and circumstances (income level) where you can do a Roth conversion at a favorable tax rate. The map is IRA > checking/settlement account > Roth. Rather than making IRS quartley estimated tax payments, you do a $30,000 Roth conversion in November or December and have $5,000 of the conversion withheld for your taxes. This satisifies the IRS for your tax withholding requirement for the year (they view it as being equal to having made quarterly estimated payments). But the actual transfer of money out of your IRA and into your checking/settlement account is only $25,000 ($30k minus $5k withholding). But when you then move the conversion...
by BigJohn
Tue May 30, 2023 10:32 pm
Forum: Personal Investments
Topic: Roth conversion sanity check .... I think this is correct
Replies: 19
Views: 2207

Re: Roth conversion sanity check .... I think this is correct

Thanks for all the input. Random comments to the responses: - Yes, I'll check with the tax accountant about the standard deduction. I didn't include it, or IRMAA, as I was just doing a sanity check. Interesting thought about the doing an end-of-the year Roth conversion that withholds the amount I need to cover the tax debt. - Yes, I'll have some interest and dividends, but I'll adjust the total down to avoid edging into a higher bracket. And, as was noted, " But so what? It's not the entire amount that jumps into new brackets. - I expect to be in the 22% bracket for a long time, so it doesn't bother me to go into 24% for the Roth conversion. The reason being, is that I'll more than make up that extra 2% by escaping capital gains when ...
by BigJohn
Tue May 30, 2023 10:21 pm
Forum: Personal Finance (Not Investing)
Topic: Paper Checks
Replies: 50
Views: 6269

Re: Paper Checks

My bad. I should have never mentioned USPS. It is what it is and I love them like everybody else(May god bless them). My problem is with Vanguard. I think I should be able to go into my IRA online and send a payment to a charity directly to the charity and the charity would have the funds in the standard 3-5 business days. The present Vanguard system using USPS: I sell stock. Vanguard sends me a paper check. I send it to charity. This can take 3-5 weeks or longer(if it gets lost somewhere along the process). Where does that money sit? How much does Vanguard make while it sits?(probably not much on my small individual donation, but multiply it by thousands of charity minded old people). This seems like a money making deal for Vanguard and h...
by BigJohn
Mon May 29, 2023 12:08 pm
Forum: Personal Finance (Not Investing)
Topic: Paper Checks
Replies: 50
Views: 6269

Re: Paper Checks

Not quite QCD eligible yet but anything I can do to eliminate the USPS is a step in the right direction. So, my plan is to initiate check writing on my IRA, write the check myself and hand deliver them to my local charities.
by BigJohn
Sat May 27, 2023 10:13 pm
Forum: Personal Investments
Topic: Vanguard vs state 529 plan
Replies: 14
Views: 2002

Re: Vanguard vs state 529 plan

In general, the only reason to use your state 529 rather than a cheaper one is if your state offers a tax deduction for using theirs. Looks like Mi does. https://www.michigan.gov/treasury/news/2023/03/14/score-big-at-tax-time-with-the-michigan-education-savings-program#:~:text=Individual%20taxpayers%20may%20deduct%20up,may%20deduct%20up%20to%20%2410%2C000.&text=In%20addition%20to%20a%20state,the%20state%20and%20federal%20levels. . Individual taxpayers may deduct up to $5,000 in MESP contributions each year from their Michigan-adjusted gross income, and taxpayers filing jointly may deduct up to $10,000. I’ve got a similar question in a different state. My state 529 site doesn’t mention it but based on this calculator from VG, it seems a...
by BigJohn
Thu May 25, 2023 11:48 pm
Forum: Personal Investments
Topic: Vanguard vs state 529 plan
Replies: 14
Views: 2002

Re: Vanguard vs state 529 plan

In general, the only reason to use your state 529 rather than a cheaper one is if your state offers a tax deduction for using theirs. Looks like Mi does. https://www.michigan.gov/treasury/news/2023/03/14/score-big-at-tax-time-with-the-michigan-education-savings-program#:~:text=Individual%20taxpayers%20may%20deduct%20up,may%20deduct%20up%20to%20%2410%2C000.&text=In%20addition%20to%20a%20state,the%20state%20and%20federal%20levels. . Individual taxpayers may deduct up to $5,000 in MESP contributions each year from their Michigan-adjusted gross income, and taxpayers filing jointly may deduct up to $10,000. I’ve got a similar question in a different state. My state 529 site doesn’t mention it but based on this calculator from VG, it seems a...
by BigJohn
Sun May 21, 2023 2:00 pm
Forum: Personal Investments
Topic: Too old for a Roth Conversion?
Replies: 15
Views: 1869

Re: Too old for a Roth Conversion?

Don’t forget that although RMDs were pushed back to 73, you can do all your charitable giving via QCDs starting at 70.5. Just be aware that you actually have to be 70.5 for QCDs, not “the year in which you turn 70.5” like it was for RMDs.
by BigJohn
Sun Apr 23, 2023 11:37 am
Forum: Personal Finance (Not Investing)
Topic: Should I purchase a Medicare supplement?
Replies: 202
Views: 16345

Re: Should I purchase a Medicare supplement?

The 20% coinsurance of part B has no cap. If you need an expensive outpatient therapy like cancer treatment, the coinsurance could go well into 5 figures. There are services during a hospitalization that may be billed under part B as well. Also, many supplements pay the extra charge for providers who do not accept medicare assignment. In that scenario, the coinsurance without a supplement will be about 30%. But your potential cost should be evaluated by future potential cost, and the future is unpredictable. What if some not yet developed lifesaving outpatient therapy that you need in the future costs $5M? The part B coinsurance would be $1M (or higher if the providers don't accept medicare assignment). Generally, I think plan G-HD supplem...