Search found 3636 matches

by MnD
Tue Sep 25, 2018 9:55 pm
Forum: Investing - Theory, News & General
Topic: Other Portfolios that aren't 3 fund
Replies: 15
Views: 1016

Re: Other Portfolios that aren't 3 fund

Well mine _is_ a 3-fund model (actually involving a lot of stock funds), but devolves to and closely track the following:

70% VT: Vanguard Total World Stock Index
20% TSP G Fund (Federal govt retirement fund stable value offering)
10% DODLX Dodge and Cox Global Bond Fund
by MnD
Tue Sep 25, 2018 2:24 pm
Forum: Personal Finance (Not Investing)
Topic: Pension security question
Replies: 5
Views: 407

Re: Pension security question

You also need to check if your specific benefit level for your planned retirement age is within the PBGC limits. Many airline pilots (typically early retirement age with high pension benefits) learned after 2008/09 that PBGC limits covered only a small fraction of their promised benefits from the ai...
by MnD
Tue Sep 25, 2018 1:21 pm
Forum: Investing - Theory, News & General
Topic: Are target funds off-target?
Replies: 32
Views: 2313

Re: Are target funds off-target?

Most DIY people foregoing target date funds in their 401-K just look at the consolidated performance table of the hodge-podge of mostly active funds offered and pick a few that have the highest recent returns. They are usually higher cost "slice and dice" funds in a asector that has been in favor fo...
by MnD
Tue Sep 25, 2018 11:25 am
Forum: Investing - Help with Personal Investments
Topic: Ally Savings vs Vanguard Prime Money Market Fund - Need Advice
Replies: 67
Views: 7388

Re: Ally Savings vs Vanguard Prime Money Market Fund - Need Advice

Do you pay state income tax? If your marginal rate is 5% a new 13-week T-bill at 2.18% has a taxable equivalent yield of 2.30%. By end of next week probably more like 2.25% and 2.37% TEY (assuming 5% state tax rate). If you have a regular non-retirement brokerage account at Schwab, Fidelity, Vangua...
by MnD
Mon Sep 24, 2018 5:08 pm
Forum: Investing - Help with Personal Investments
Topic: Personal Capital Target Allocation Tool - should I follow it?
Replies: 15
Views: 1031

Re: Personal Capital Target Allocation Tool - should I follow it?

Not only is Personal Capital's asset allocation recommendation somewhat controversial (there's a big debate over how much, if any, international exposure investors need), but their breakdowns over complicate matters. There's nothing "controversial" about their international equity allocation: it's ...
by MnD
Mon Sep 24, 2018 1:47 pm
Forum: Investing - Help with Personal Investments
Topic: Personal Capital Target Allocation Tool - should I follow it?
Replies: 15
Views: 1031

Re: Personal Capital Target Allocation Tool - should I follow it?

No-one would pay Personal Capital .89% of their money annually to manage their funds in a three-fund portfolio. So they have to suggest something different to get people's attention like 10.5% in the mysterious "alternatives" box and fundamental weighting for domestic S%P sectors versus market cap w...
by MnD
Sun Sep 23, 2018 10:35 am
Forum: Investing - Help with Personal Investments
Topic: How do I allocate social security in retirement?
Replies: 19
Views: 1779

Re: How do I allocate social security in retirement?

I like playing with numbers so with the help of resources I found from this board I computed the net present value of my pension and our social security claims to compare to our investment portfolio. It comes out like this: Net present value: Our Investment portfolio 43% My pension 32% Our Social Se...
by MnD
Sun Sep 23, 2018 9:31 am
Forum: Investing - Help with Personal Investments
Topic: Ally Savings vs Vanguard Prime Money Market Fund - Need Advice
Replies: 67
Views: 7388

Re: Ally Savings vs Vanguard Prime Money Market Fund - Need Advice

Do you pay state income tax? If your marginal rate is 5% a new 13-week T-bill at 2.18% has a taxable equivalent yield of 2.30%. By end of next week probably more like 2.25% and 2.37% TEY (assuming 5% state tax rate). If you have a regular non-retirement brokerage account at Schwab, Fidelity, Vanguar...
by MnD
Sat Sep 22, 2018 5:05 pm
Forum: Personal Finance (Not Investing)
Topic: How did you decide when to retire?
Replies: 54
Views: 7973

Re: How did you decide when to retire?

I decided in 1990 to retire end of August 2018 at age 56. Father in-law passing away in 1989 at age 66 less than one year after retirement and father passing away in 1990 at age 68 about 18 months after a partial retirement had something to do with that decision, but not everything. Set savings rate...
by MnD
Sat Sep 22, 2018 11:12 am
Forum: Investing - Help with Personal Investments
Topic: The bond side of my asset allocation ...
Replies: 21
Views: 1019

Re: The bond side of my asset allocation ...

Bond funds have been doing poorly for the past 2.25 years but I guess folks are just noticing now. The benchmark for a variety of cash instruments will be in the range of 2-2.25% after next weeks FOMC meeting and 10-year Treasuries are now over 3%. One more rate hike on the short end to 2.25-2.5% ra...
by MnD
Sat Sep 22, 2018 8:57 am
Forum: Investing - Theory, News & General
Topic: TSP to Increase Stock Holdings in L Funds
Replies: 48
Views: 2461

Re: TSP to Increase Stock Holdings in L Funds

Feds hired after 1983 have a 1% of salary times years pension, full eligibility for Social Security and the TSP. A TSP glide path of 99% for a young employee to 60% equity by mid-late 50's, then a drop to 30% equity by only age 63 is not too aggressive and/or an incarnation of recency bias. In fact ...
by MnD
Fri Sep 21, 2018 10:55 am
Forum: Personal Finance (Not Investing)
Topic: Physical Banking - Any benefits anymore?
Replies: 136
Views: 7828

Re: Physical Banking - Any benefits anymore?

Before I closed our accounts our physical bank staff had devolved into just typing into internal web sites and making calls to specialists more or less like you would if banking at this same bank on-line or by phone by yourself. They were also trained to sell things every time you use them for assis...
by MnD
Fri Sep 21, 2018 9:09 am
Forum: Investing - Theory, News & General
Topic: TSP to Increase Stock Holdings in L Funds
Replies: 48
Views: 2461

Re: TSP to Increase Stock Holdings in L Funds

Yes, you and I agree that the Vanguard asset class recommendations are too stock heavy - and I would add that virtually every one of these calculators are everywhere else too. That's recency bias at work. I don't see that changing until we have a longer, more drawn out bear market, like from 68' to...
by MnD
Fri Sep 21, 2018 8:02 am
Forum: Investing - Theory, News & General
Topic: TSP to Increase Stock Holdings in L Funds
Replies: 48
Views: 2461

Re: TSP to Increase Stock Holdings in L Funds

Still too conservative and the 5-year drop from 60% equity to 30% equity age 58-63 - hmmmmmmm...... TSP pioneer here (march 1987) and we've always been around 70/30 and will remain for life. The FERS pension and SS is like having 50% or more in bonds so if you are 70/30 in your investment portfolio ...
by MnD
Tue Sep 18, 2018 8:17 pm
Forum: Personal Finance (Not Investing)
Topic: retroactive change to State Retirement plan illegal?
Replies: 17
Views: 1952

Re: retroactive change to State Retirement plan illegal?

Yeah, but is a "state government pension" considered the same as "retiree health benefits" :?: Bingo and the answer is often no. Health insurance, COLA's and other retirement goodies are often legally separated from the core vested pension obligation. It's also generally a bad idea to withdraw empl...
by MnD
Mon Sep 17, 2018 9:30 am
Forum: Investing - Help with Personal Investments
Topic: (No Savings) *Everything* in S&P 500?
Replies: 33
Views: 3795

Re: (No Savings) *Everything* in S&P 500?

The federal 401-K (TSP) was launched in 1987 and back then we had actual live (contract) trainers that travelled around and gave educational seminars. They were pretty heavy on suggesting younger employees go 100% in S&P 500 index which at the time was the only stock fund option. I know several peo...
by MnD
Mon Sep 17, 2018 8:55 am
Forum: Investing - Help with Personal Investments
Topic: (No Savings) *Everything* in S&P 500?
Replies: 33
Views: 3795

Re: (No Savings) *Everything* in S&P 500?

The federal 401-K (TSP) was launched in 1987 and back then we had actual live (contract) trainers that travelled around and gave educational seminars. They were pretty heavy on suggesting younger employees go 100% in S&P 500 index which at the time was the only stock fund option. I know several peop...
by MnD
Thu Sep 13, 2018 11:20 pm
Forum: Investing - Theory, News & General
Topic: New era for TSP "I" Fund?
Replies: 16
Views: 2086

Re: New era for TSP "I" Fund?

Keep in mind this index does not cover any small-caps. The new I fund index (hence the thread title) will certainly cover small caps. https://www.msci.com/documents/10199/f24204d8-3fba-46b7-95e7-5b7dcc44536c The MSCI ACWI ex USA Investable Market Index (IMI) captures large, mid and small cap repres...
by MnD
Thu Sep 13, 2018 11:12 am
Forum: Investing - Help with Personal Investments
Topic: Wash sale question- are ITOT and VTI Substantially Identical?
Replies: 78
Views: 6513

Re: Wash sale question- are ITOT and VTI Substantially Identical?

The argument that one can't "prove" that exchanging different mutual funds doesn't constitute a wash sale is the same argument that one can't prove the non-existence of Bigfoot and the chupacabra. You can't prove a negative, but a rational person is unconcerned about exchanging different funds to re...
by MnD
Thu Sep 13, 2018 8:55 am
Forum: Investing - Help with Personal Investments
Topic: Roth conversions when we will be in 22% bracket for indefinite future
Replies: 16
Views: 1812

Re: Roth conversions when we will be in 22% bracket for indefinite future

We're not and will be in the middle of the 22% bracket at age 56 newly retired next year and for the foreseeable future. Deferring income taxes for as long as possible has served us well and all the advice I've received to date over the years to contribute to Roth's or do Roth conversions has (in re...
by MnD
Tue Sep 11, 2018 11:36 am
Forum: Investing - Theory, News & General
Topic: Moved to 100% FDIC Insured Cash today (college money needed in 3 years)
Replies: 26
Views: 2218

Re: Moved to 100% FDIC Insured Cash today (college money needed in 3 years)

We just kept ours in the 529 75/25 growth fund (which used a 3-fund Vanguard fund approach) the whole time. Money is fungible and we had other funds in other accounts we could have used for college costs so we weren't worried about managing various accounts with their own asset allocations. Overall...
by MnD
Tue Sep 11, 2018 10:50 am
Forum: Investing - Theory, News & General
Topic: Moved to 100% FDIC Insured Cash today (college money needed in 3 years)
Replies: 26
Views: 2218

Re: Moved to 100% FDIC Insured Cash today (college money needed in 3 years)

We just kept ours in the 529 75/25 growth fund (which used a 3-fund Vanguard fund approach) the whole time. Money is fungible and we had other funds in other accounts we could have used for college costs so we weren't worried about managing various accounts with their own asset allocations. Overall ...
by MnD
Mon Sep 10, 2018 11:43 pm
Forum: Personal Finance (Not Investing)
Topic: Anyone else not save for cars?
Replies: 113
Views: 9993

Re: Anyone else not save for cars?

I don't buy vehicles very often. I have only bought three in my life. I had an old truck that I inherited from the family business that died in 1981. At that time I bought my first one, a 1980 Blazer. When it died about ten years later, I got a 1987 Bronco. That developed a fatal problem in 1999, w...
by MnD
Mon Sep 10, 2018 11:23 pm
Forum: Investing - Theory, News & General
Topic: Fidelity Files for Four Fidelity ZERO℠ Funds (0.00% ER)
Replies: 737
Views: 70371

Re: Fidelity Files for two Fidelity ZERO℠ Funds (0.00% ER total stock and total international mutual funds)

Fidelity uses SPAXX as its settlement fund for its brokerage accounts. The ER is 0.42% - almost four times the ER of Vanguard's brokerage settlement fund. The Fidelity ZERO funds are only available to Fidelity brokerage accounts, so everyone who wants one will have a brokerage account, and idle cas...
by MnD
Mon Sep 10, 2018 10:31 am
Forum: Investing - Theory, News & General
Topic: Tax loss harvesting - wash sale rule
Replies: 57
Views: 3173

Re: Tax loss harvesting - wash sale rule

The "wash sale" resulting from the sale and purchase two different mutual funds is the Chupacabra and Bigfoot of this forum. Often discussed but never any credible evidence that it exists. I'd be more worried about reporting a false wash sale by selling fund ABC and buying fund XYZ and then reportin...
by MnD
Sun Sep 09, 2018 2:52 pm
Forum: Investing - Help with Personal Investments
Topic: Wash sale question- are ITOT and VTI Substantially Identical?
Replies: 78
Views: 6513

Re: Wash sale question- are ITOT and VTI Substantially Identical?

To be fair/clear I don't think people are making up "rules" so much as determining what level of avoidance makes them comfortable. I might feel comfortable not giving Bigfoot a moment's consideration while someone else might avoid going more than x miles deep into the woods and another might avoid ...
by MnD
Sun Sep 09, 2018 11:51 am
Forum: Investing - Help with Personal Investments
Topic: Wash sale question- are ITOT and VTI Substantially Identical?
Replies: 78
Views: 6513

Re: Wash sale question- are ITOT and VTI Substantially Identical?

My own rule of thumb is that if it follows a different index, it is not substantially identical. I think that's probably overly conservative but it's a clear signal to go on and there are generally no shortage if ETFs out there following very-similar-but-not-quite-the-same indices to choose from. I...
by MnD
Sun Sep 09, 2018 11:25 am
Forum: Personal Finance (Not Investing)
Topic: How much do bogleheads save in 529?
Replies: 79
Views: 4510

Re: How much do bogleheads save in 529?

Enough for 1 kid for the two overlap years so we only had to cash flow one tuition room and board expense at a time. Our state also provides a deduction based on gross contributions (not net) with a very high limit so every dime of qualified college costs was put in the 529 for a very short time and...
by MnD
Sat Sep 08, 2018 11:06 pm
Forum: Personal Consumer Issues
Topic: Older Toyota/Honda/Similar owners: How often do you clean your car?
Replies: 36
Views: 2124

Re: Older Toyota/Honda/Similar owners: How often do you clean your car?

1) 8 -12 times a year. Usually a drive thru car wash. Denver is nasty for dust, dirt, grime, snow-melt chemicals etc. 2) Couple times a year. I think it's helpful to keep the grime off the exterior every 4-6 weeks if you plan to keep keep vehicles a long time and stuff collects on paint where you li...
by MnD
Sat Sep 08, 2018 12:37 pm
Forum: Investing - Help with Personal Investments
Topic: Wash sale question- are ITOT and VTI Substantially Identical?
Replies: 78
Views: 6513

Re: Wash sale question- are ITOT and VTI Substantially Identical?

The "wash sale" for selling purchasing non-identical mutual funds is the Bigfoot or Chupacabra of Bogleheads.org. No-one has ever provided a single shred of evidence that the IRS has denied a loss from buying one mutual fund within 30 days of selling another mutual fund. Once again we could dreg up ...
by MnD
Sat Sep 08, 2018 7:47 am
Forum: Investing - Theory, News & General
Topic: Hold cash in Treasury Bills or in Money Market Fund?
Replies: 36
Views: 4573

Re: Hold cash in Treasury Bills or in Money Market Fund?

Both: 25% MM @ 1.89% 75% in a 13-week 3 T-bill ladder that's 25% each around 30, 60 and 90 days out to maturity. Buy new 13-week bills with each maturity. We don't hold cash long-term - this is cash for big-ticket items spending in the next several months so keeping the maturities short. Not to ment...
by MnD
Fri Sep 07, 2018 12:08 pm
Forum: Personal Finance (Not Investing)
Topic: Federal retirees - avoid all tax withholding on retirement income streams?
Replies: 7
Views: 1160

Re: Federal retirees - avoid all tax withholding on retirement income streams?

I do not have any income taxes withheld from my FERS annuity. The only deduction is for our FEHB coverage. We currently do all our withholding through my spouse’s paycheck. Once he retires, with multiple other income sources, I plan to make quarterly estimated payments. That gives me more control. ...
by MnD
Fri Sep 07, 2018 11:19 am
Forum: Investing - Theory, News & General
Topic: September 6,2018-Vanguard Introduces Low-Cost Total World Bond ETF
Replies: 48
Views: 5401

Re: September 6,2018-Vanguard Introduces Low-Cost Total World Bond ETF

I don't think "biggest debtors", be it individual issuers or countries is a good criteria for weighting bond investment selections. You do not think this information is priced in? No. Exhibit A is Japanese Treasury bonds which, if you index, are going to be your biggest position in a total internat...
by MnD
Thu Sep 06, 2018 5:16 pm
Forum: Investing - Theory, News & General
Topic: September 6,2018-Vanguard Introduces Low-Cost Total World Bond ETF
Replies: 48
Views: 5401

Re: September 6,2018-Vanguard Introduces Low-Cost Total World Bond ETF

I don't think "biggest debtors", be it individual issuers or countries is a good criteria for weighting bond investment selections. Does the fact that General Electric and the Japanese Treasury have issued mountains of debt make them good picks for major positions in your bond fund? It's a very diff...
by MnD
Thu Sep 06, 2018 11:04 am
Forum: Personal Finance (Not Investing)
Topic: Dave Ramsey actually suggested borrowing money?
Replies: 38
Views: 3755

Re: Dave Ramsey actually suggested borrowing money?

DR is a perfect tonic for people who have the same relationship with debt and spending that an alcoholic has with 1.75 liters of cheap vodka and drinking. Beyond that, a lot of his advice is very sub-optimal for those that aren't debtaholics and can mange debt and spending responsibly. I've probably...
by MnD
Wed Sep 05, 2018 4:28 pm
Forum: Personal Finance (Not Investing)
Topic: Dave Ramsey actually suggested borrowing money?
Replies: 38
Views: 3755

Re: Dave Ramsey actually suggested borrowing money?

It all good until the drivers side ball joint fails, folds a front wheel under the vehicle and the air bags don't go off when you rocket into incoming traffic. While that might not happen, broke people are especially ill-prepared for the open-ended and unpredictable liability that a $2K used car br...
by MnD
Wed Sep 05, 2018 2:27 pm
Forum: Personal Finance (Not Investing)
Topic: Dave Ramsey actually suggested borrowing money?
Replies: 38
Views: 3755

Re: Dave Ramsey actually suggested borrowing money?

It all good until the drivers side ball joint fails, folds a front wheel under the vehicle and the air bags don't go off when you rocket into incoming traffic. While that might not happen, broke people are especially ill-prepared for the open-ended and unpredictable liability that a $2K used car bri...
by MnD
Wed Sep 05, 2018 1:53 pm
Forum: Personal Finance (Not Investing)
Topic: Dave Ramsey actually suggested borrowing money?
Replies: 38
Views: 3755

Re: Dave Ramsey actually suggested borrowing money?

Those who listen to DR enough knows he NEVER suggests borrowing money under any circumstance. This is 100% false, no other explanation needed. And swapping a secured car loan for an unsecured loan sounds like yet another terrible idea. The lending institution is already partially unsecured on the u...
by MnD
Wed Sep 05, 2018 12:31 pm
Forum: Personal Finance (Not Investing)
Topic: Dave Ramsey actually suggested borrowing money?
Replies: 38
Views: 3755

Re: Dave Ramsey actually suggested borrowing money?

What happens when this wonderful $2000 used car needs a new engine, transmission and just about everything else?
And swapping a secured car loan for an unsecured loan sounds like yet another terrible idea.
by MnD
Wed Sep 05, 2018 11:26 am
Forum: Personal Finance (Not Investing)
Topic: Credit Score [What changes your credit score?]
Replies: 42
Views: 3402

Re: Credit Score

My entire active credit file consists of four rewards credit cards set to "auto-pay statement balance in full on due date" and an unused (for years) overdraft protection checking credit line. Score is north of 830 and trend is flat.
by MnD
Wed Sep 05, 2018 9:44 am
Forum: Investing - Theory, News & General
Topic: 100% Bonds to boost returns?
Replies: 61
Views: 6401

Re: 100% Bonds to boost returns?

Please try this with documentation on the specifics and then report back annually on how it's going. The historical real drawdown on a 100% long bond portfolio is only -60% over 40 years so no worries! https://www.bloomberg.com/view/articles/2018-02-12/bond-bear-markets-aren-t-measured-in-losses-alone
by MnD
Tue Sep 04, 2018 1:23 pm
Forum: Investing - Help with Personal Investments
Topic: Windfall in rubles: how should we invest it?
Replies: 22
Views: 1969

Re: Windfall in rubles: how should we invest it?

If the windfall had never happened but your presumably diversified household investment portfolio was larger by the amount of this windfall, would you sell that amount and invest it in rubles in Russian banks and/or into the Russian stock market? If the answer is yes then by all means go Russia with...
by MnD
Tue Sep 04, 2018 11:27 am
Forum: Personal Consumer Issues
Topic: Neighbor Fencing question
Replies: 50
Views: 3926

Re: Neighbor Fencing question

I paid 100% of the cost of replacing "our" fence (with many weeks of advance notice of the job to all affected neighbors) that was on the property line. Two of my 3 neighbors then complained. One contended that I "stole" some of his property because the old fence had dipped into my yard for a few se...
by MnD
Mon Sep 03, 2018 10:35 am
Forum: Investing - Help with Personal Investments
Topic: TSP Percentages Question
Replies: 11
Views: 952

Re: TSP Percentages Question

The L is a conservative 20/80 fund for someone wanting mostly income and stability with some growth from stocks. Due to the unique characteristics of the G fund it's an excellent 20/80 fund for that objective. Because stocks have been going up lately as well as the G fund yield and return increasing...
by MnD
Sun Sep 02, 2018 6:32 pm
Forum: Personal Finance (Not Investing)
Topic: Do you have an umbrella policy?
Replies: 278
Views: 29282

Re: Umbrella insurance..who has it? Is it recommended?

A co-worker was found liable in a swimming pool accident at her apartment involving a child (not hers) and had nothing like a umbrella policy. She had low max coverage auto and no renters insurance. Lost the civil suit so owes something like $1.3M. Her garnishments don't even cover the interest so ...
by MnD
Sun Sep 02, 2018 5:27 pm
Forum: Personal Finance (Not Investing)
Topic: Do you have an umbrella policy?
Replies: 278
Views: 29282

Re: Umbrella insurance..who has it? Is it recommended?

A co-worker was found liable in a swimming pool accident at her apartment involving a child (not hers) and had nothing like a umbrella policy. She had low max coverage auto and no renters insurance. Lost the civil suit so owes something like $1.3M. Her garnishments don't even cover the interest so h...
by MnD
Sun Sep 02, 2018 4:07 pm
Forum: Investing - Help with Personal Investments
Topic: small amount in tsp
Replies: 20
Views: 1465

Re: small amount in tsp

I would never throw away lifetime access to a 11-year Treasury bond fund yield with 0 duration I could roll into. But that's just me.
by MnD
Fri Aug 31, 2018 1:00 pm
Forum: Investing - Help with Personal Investments
Topic: Is it time to go shorter in bonds ?
Replies: 100
Views: 7422

Re: Is it time to go shorter in bonds ?

July 2016 would have been an excellent time to deploy the go shorter strategy.
by MnD
Fri Aug 31, 2018 12:46 pm
Forum: Investing - Help with Personal Investments
Topic: help with picking 401k bond fund
Replies: 5
Views: 375

Re: help with picking 401k bond fund

i dont know if a short term bond fund can even overcome 1.1% ER. make sure you mention the words lawsuit to your HR......bleh. I know, the ER's are horrible :( They are the effective ER, for example John Hancock is charging 1.04% no matter what the fund and the Vanguard ST Federal fund is 0.10% = a...
by MnD
Fri Aug 31, 2018 12:35 pm
Forum: Personal Finance (Not Investing)
Topic: Federal retirees - avoid all tax withholding on retirement income streams?
Replies: 7
Views: 1160

Re: Federal retirees - avoid all tax withholding on retirement income streams?

You certainly can claim a large number of allowances on form W-4, and go through the extra work of paying estimated tax and leaving yourself more likely to incur penalties if you miscalculate the quarterly amount. Or just use withholding. ;) No interest on withholding or gaming allowances. I'm hopi...