Search found 3323 matches

by MnD
Thu May 24, 2018 1:18 pm
Forum: Investing - Theory, News & General
Topic: Why do so many people quote "You will likely be in a lower tax bracket in retirement"
Replies: 438
Views: 21951

Re: Why do so many people quote "You will likely be in a lower tax bracket in retirement"

My feeling is that not being in a lower tax bracket when you retire is a nice problem to have. :sharebeer Unless it resulted from working for far more years than was necessary to retire. Having a taxable income in retirement high enough to be in a higher tax bracket than when working would result i...
by MnD
Wed May 23, 2018 6:39 pm
Forum: Personal Consumer Issues
Topic: Porting a Bundled landline to a cell phone
Replies: 4
Views: 320

Re: Porting a Bundled landline to a cell phone

My co-worker did that and he now gets a gazillion spam and political calls on his cell that used to go to his land line. He claims he's on the do not call list but he's not real swift with technology, nor could he explain why he ported the number other than "that's always been our number so I didn't...
by MnD
Wed May 23, 2018 6:11 pm
Forum: Investing - Theory, News & General
Topic: The Millionaire Next Door and civil servants
Replies: 93
Views: 12497

Re: The Millionaire Next Door and civil servants

Here's my co-workers back doctor although not anymore in light of her recent legal and financial problems. http://www.dailycamera.com/news/boulder/ci_31509587/cathleen-van-buskirk-indicted-bankruptcy-scheme A Boulder spinal surgeon was arrested this week after being indicted by a federal grand jury ...
by MnD
Wed May 23, 2018 10:40 am
Forum: Investing - Theory, News & General
Topic: Taxable Account Near Retirement
Replies: 16
Views: 1496

Re: Taxable Account Near Retirement

Our taxable account has been 100% in stocks for growth and tax efficiency for a bit over 30 years. I retire later this year. The stocks funds in taxable are currently things that aren't available in our 401-K's (emerging markets, small cap international). We have excellent fixed income options in ou...
by MnD
Tue May 22, 2018 7:09 pm
Forum: Investing - Theory, News & General
Topic: The Millionaire Next Door and civil servants
Replies: 93
Views: 12497

Re: The Millionaire Next Door and civil servants

Some of the criticism that I read here, is decent, but it ignores the fundamental truths of these books. Namely: those that actually have money, tend not to look like they do; and, those that look rick are probably broke. That isn't remotely a fundamental truth. It is a fairy tale that appeals to a...
by MnD
Tue May 22, 2018 6:26 pm
Forum: Investing - Theory, News & General
Topic: The Millionaire Next Door and civil servants
Replies: 93
Views: 12497

Re: The Millionaire Next Door and civil servants

Some of the criticism that I read here, is decent, but it ignores the fundamental truths of these books. Namely: those that actually have money, tend not to look like they do; and, those that look rick are probably broke. That isn't remotely a fundamental truth. It is a fairy tale that appeals to a...
by MnD
Tue May 22, 2018 12:37 pm
Forum: Investing - Theory, News & General
Topic: Vanguard Announces Plans To Launch Total World Bond ETF
Replies: 30
Views: 3011

Re: Vanguard Announces Plans To Launch Total World Bond ETF

I'll stick with Dodge and Cox Global Bond and a stable value fund.
Hedging and "biggest debtor" indexing just doesn't do it for me on the fixed income side.
by MnD
Tue May 22, 2018 12:02 pm
Forum: Investing - Theory, News & General
Topic: The Millionaire Next Door and civil servants
Replies: 93
Views: 12497

Re: The Millionaire Next Door and civil servants

Civil servants are like anyone else. Not exactly. They have large defined benefit pensions that are becoming less and less common in the private sector. Feds hired 1984 and later have a pension that is around 30% of salary assuming they had a long continuous career in federal service of 3 decades. ...
by MnD
Tue May 22, 2018 8:30 am
Forum: Investing - Theory, News & General
Topic: Why do so many people quote "You will likely be in a lower tax bracket in retirement"
Replies: 438
Views: 21951

Re: Why do so many people quote "You will likely be in a lower tax bracket in retirement"

I too am planning on retiring at around that age, and I'm planning on either using the SEPP 72(t) rule and/or making withdrawals from my 457 plan, which has no early withdrawal penalty as long as you've separated from service to the employer. Likewise age 56 we will be using SEPP 72(t) and making 4...
by MnD
Mon May 21, 2018 7:27 pm
Forum: Investing - Theory, News & General
Topic: Blackrock lowered fees for ESG index ETFs
Replies: 3
Views: 399

Re: Blackrock lowered fees for ESG index ETFs

whodidntante wrote:
Mon May 21, 2018 7:04 pm
That's good. Any news on their EVIL ETFs? :twisted:
The Vice Fund is still at ER 1.49%
http://www.usamutuals.com/wp-content/up ... _sheet.pdf
by MnD
Sun May 20, 2018 7:08 pm
Forum: Personal Finance (Not Investing)
Topic: New perspective on cash-flowing ever increasing College tuition costs, without 529 plan that is!
Replies: 22
Views: 1836

Re: New perspective on cash-flowing ever increasing College tuition costs, without 529 plan that is!

- Get a 15 year mortgage and stick to it (no stretch-outs when refinancing or trading houses) so by the time your kids start college you can redirect house payments to college payments. - If you are car loan people (not that I would recommend that), time things so car loans are paid off but with 4-5...
by MnD
Sun May 20, 2018 6:06 pm
Forum: Investing - Theory, News & General
Topic: China and EM
Replies: 20
Views: 1953

Re: China and EM

EM (all EM countries) is 10% of Total World Stock. Whatever China A shares do to EM as a percentage of EM or as a percentage of China in Total World over several years seem like about item 1001 on the top 1000 things to worry about. The current % of China in Total World at 3.2% seems ridiculously lo...
by MnD
Sun May 20, 2018 2:13 pm
Forum: Investing - Theory, News & General
Topic: Buffett says Bonds are a terrible investment now. What should we invest in besides stocks?
Replies: 76
Views: 9443

Re: Buffett says Bonds are a terrible investment now. What should we invest in besides stocks?

Perhaps it would help if you do not consider bonds an investment, but instead, protection against catastrophic loss. If you really want to invest all of your money in vehicles having high expected return, you need to accept the possibility of catastrophic loss. I think of catastrophic loss like bro...
by MnD
Sun May 20, 2018 10:20 am
Forum: Investing - Theory, News & General
Topic: Why do so many people quote "You will likely be in a lower tax bracket in retirement"
Replies: 438
Views: 21951

Re: Why do so many people quote "You will likely be in a lower tax bracket in retirement"

The real number is 28% of civilian workers have access to a DB pension plan. Interestingly, 42% of "Management, professional, and related" have access to a DB pension, as do 48% of those whose civilian wages fall in the "top 10%" category. https://www.bls.gov/ncs/ebs/benefits/2017/ownership/civilian...
by MnD
Sat May 19, 2018 5:35 pm
Forum: Personal Finance (Not Investing)
Topic: Helping Adult Children (but not too much)
Replies: 95
Views: 6639

Re: Helping Adult Children (but not too much)

The adult (23 and 25) kids are phone #3 and #4 on the Cricket cell/date plan so $30/month for both. Christmas and birthday gifts are 600 to 700 range in cash or services if needed - last Christmas one kid got new brakes and rotors instead of cash. I gave the last "teen car" that kids drove when in H...
by MnD
Sat May 19, 2018 12:20 pm
Forum: Personal Finance (Not Investing)
Topic: Entry-level employment affected by having no credit score?
Replies: 2
Views: 350

Entry-level employment affected by having no credit score?

I have a family member age 23 who has been turned down for a number of entry-level post-college jobs that seemed like pretty safe bets for getting hired. He has always been a cash/debit guy and his girlfriend, who works in the banking/credit business noted that he has no credit file or score. He was...
by MnD
Sat May 19, 2018 9:52 am
Forum: Investing - Theory, News & General
Topic: Why do so many people quote "You will likely be in a lower tax bracket in retirement"
Replies: 438
Views: 21951

Re: Why do so many people quote "You will likely be in a lower tax bracket in retirement"

I will receive a "decent" federal pension and it doesn't change the equation on standard advice to save to tax deferred while working and spend from tax deferred when retired and in a lower tax bracket. Virtually all of our tax-deferred savings went in at 28% (post 2001) or 31% (pre 2001). One year ...
by MnD
Thu May 17, 2018 7:02 am
Forum: Investing - Theory, News & General
Topic: Why do so many people quote "You will likely be in a lower tax bracket in retirement"
Replies: 438
Views: 21951

Re: Why do so many people quote "You will likely be in a lower tax bracket in retirement"

Personally, I don't have a problem with putting in 28% [correction] 24% tax bracket money that I will pull out filling up the 10%, 12% and 22% tax brackets. The HORROR! :mrgreen: And in my case I've only got 1 year of funds reducing 24% tax with retirement later this year and while looking back, so...
by MnD
Tue May 15, 2018 2:29 pm
Forum: Investing - Theory, News & General
Topic: Would you be willing to temporarily change your AA?
Replies: 27
Views: 1494

Re: Would you be willing to temporarily change your AA?

In 2008/09, just getting back to my AA of 25% fixed income required me to undertake two rounds of selling 6-figures worth of bonds and buying equities, in an exercise that at the time felt like shoveling a small mountain of cash into the opening of a hot-burning wood stove. Many people were complete...
by MnD
Mon May 14, 2018 6:15 pm
Forum: Investing - Help with Personal Investments
Topic: Did you go 100% Cash-FDIC in 529 at HS graduation or before?
Replies: 13
Views: 1093

Re: Did you go 100% Cash-FDIC in 529 at HS graduation or before?

No we just kept in in a Vanguard moderate growth fund of funds in the 529 the whole time as funds sitting in cash isn't part of our IPS. Its just mental accounting to keep various "bins" of investment funds with varying asset allocations. https://www.bogleheads.org/wiki/Behavioral_pitfalls We treat ...
by MnD
Mon May 14, 2018 3:40 pm
Forum: Personal Finance (Not Investing)
Topic: What online bank do you use?
Replies: 99
Views: 13842

Re: What online bank do you use?

Schwab for checking. In addition to having no fees, atm fee reimbursement, free checks, they have a good mobile app which you can use to deposit checks by taking a picture, and great customer service. Great bank. Schwab for checking per above plus the linked Schwab brokerage for savings. On the bro...
by MnD
Mon May 14, 2018 11:53 am
Forum: Investing - Theory, News & General
Topic: Withdrawal Rates – Part 24: Flexibility Myths vs. Reality
Replies: 89
Views: 9033

Re: Withdrawal Rates – Part 24: Flexibility Myths vs. Reality

I don't think you are weird and I share you sentiment. My current target is 1.6% But I have a goal of leaving a legacy. The mean and median legacy (ending portfolio) of a 5% annual portfolio withdrawal (with a 3% inflation adjusted floor) over 40 years is $958K and $775K REAL per $1M original portf...
by MnD
Sun May 13, 2018 11:31 pm
Forum: Investing - Theory, News & General
Topic: Why is Fidelity more picky than banks about middle names?
Replies: 10
Views: 1681

Re: Why are Vanguard and Fidelity more picky than banks about middle names?

2015 wrote:
Sun May 13, 2018 7:11 pm
In fact, no financial institution has ever had the ridiculous legal first name my parents thought to give me at birth.
What is it? :shock:
by MnD
Sat May 12, 2018 11:40 pm
Forum: Personal Finance (Not Investing)
Topic: Quest for the perfect online savings bank
Replies: 18
Views: 2253

Re: Quest for the perfect online savings bank

Brokerage account. Prime money market, Treasury MM, muni MM, state-specific muni MM, T-note ladder with auto rolls, brokered CD's - the list goes on and on. :beer The "perfect" on-line savings bank is going to offer you one option and chances are a month or a few later it will not be even remotely p...
by MnD
Sat May 12, 2018 12:36 pm
Forum: Investing - Theory, News & General
Topic: Muni Money Market funds starting to look good!
Replies: 139
Views: 23995

Re: Muni Money Market funds starting to look good!

Yield spread may have disappeared. I was shocked to see that CA muni mm now yield 1.33, down from 1.47 then 1.43 when this thread was trending. Nothing happened on Fed rate or other mm fund, so why the drop in CA mm? Schwab Muni MM had dropped from 1.4X a few weeks ago to 1.23%. I guess the lesson ...
by MnD
Sat May 12, 2018 9:50 am
Forum: Investing - Help with Personal Investments
Topic: How close do you cut your monthly surplus?
Replies: 22
Views: 3031

Re: How close do you cut your monthly surplus?

We always put in what we thought we needed to save for retirement first. Age 24-30 (pre-kids) we built up a substantial all-equity taxable account and never added another dime to it. After that, we spent what was left over after college and retirement savings like drunken sailors. In reality we had ...
by MnD
Sat May 12, 2018 9:20 am
Forum: Investing - Theory, News & General
Topic: Withdrawal Rates – Part 24: Flexibility Myths vs. Reality
Replies: 89
Views: 9033

Re: Withdrawal Rates – Part 24: Flexibility Myths vs. Reality

50 years is a bridge too far for me for any sort of realistic scenario but I'll bite on 40 years. 5% of portfolio balance with a 3% inflation adjusted floor for 40 years does just fine and will be our starting model in a few months. Yes the hapless 1965-66 retirees spend almost all of the time on th...
by MnD
Fri May 11, 2018 10:29 am
Forum: Investing - Theory, News & General
Topic: Why International again?
Replies: 224
Views: 19960

Re: Why International again?

I'm always interested in exploiting bias for profit. Is the disparity in US ex-US market valuations explainable in part by US investor home-country bias? As the $30 trillion in wealth rolls over from baby-boomers to millennials, will we observe a reduction in home country bias and a corresponding re...
by MnD
Fri May 11, 2018 8:50 am
Forum: Investing - Theory, News & General
Topic: Why International again?
Replies: 224
Views: 19960

Re: Why International again?

If you have an ideological bias towards your home country as inherently superior/safer/cleaner/more honest/fewer undesirables or whatever, its unlikely you will be able to maintain anything other than a trivial ex-home country position in financial assets when markets go bad in general and especiall...
by MnD
Wed May 09, 2018 11:46 pm
Forum: Personal Finance (Not Investing)
Topic: Buying new car or buying used car
Replies: 91
Views: 5000

Re: Buying new car or buying used car

Note the location of the dark brown wash return water in this video.
Used cars do come with a bonus from the previous owners.

https://www.youtube.com/watch?v=oyqclZgv0mk
by MnD
Wed May 09, 2018 11:16 pm
Forum: Personal Finance (Not Investing)
Topic: Newb: Money Market Fund (VMSXX) vs high yield savings online banking for E-fund?
Replies: 15
Views: 2189

Re: Newb: Money Market Fund (VMSXX) vs high yield savings online banking for E-fund?

I opened a brokerage account at Schwab and put mine in their muni bond money market. It comes linked with great checking account on request. Closed the brick and mortar savings and checking accounts and online "high yield" savings account. Reduced number of institutions with our finances from 5 to 3...
by MnD
Wed May 09, 2018 8:56 pm
Forum: Investing - Theory, News & General
Topic: Why International again?
Replies: 224
Views: 19960

Re: Why International again?

I've been listening to this "all you need" argument for decades. All you need is a small basket of carefully selected blue-chip dividend stocks. All you need is S&P 500. All you need is US stocks large and small. All you need is heavily tilted US portfolio with an underweighted ex-US allocation. The...
by MnD
Wed May 09, 2018 12:06 pm
Forum: Investing - Theory, News & General
Topic: Muni Money Market funds starting to look good!
Replies: 139
Views: 23995

Re: Muni Money Market funds starting to look good!

In comparison, it took 1 day to open an account, set up "instant" links to external accounts and transfer funds in to a Schwab brokerage account and trade those funds (my trade was a purchased MM fund). They put a 7-day hold on the transferred-in funds to transfer any out of the account, but I could...
by MnD
Wed May 09, 2018 10:33 am
Forum: Investing - Theory, News & General
Topic: Why International again?
Replies: 224
Views: 19960

Re: Why International again?

$30 trillion in wealth is going to transfer to millennials from baby-boomers checking out over the next 30 years. Younger investors don't have nearly the "US good foreign risky-bad" mindset that many baby-boomers have from growing up during the cold war and other formative year experiences. Regardle...
by MnD
Mon May 07, 2018 7:47 pm
Forum: Investing - Theory, News & General
Topic: Total Bond - SEC yield breaks 3%
Replies: 97
Views: 10575

Re: Total Bond - SEC yield breaks 3%

Worrying about the ST return on this fund probably means that it was too aggressive of a choice. The vast majority of current investors have never seen a bear bond market. Not saying we're in one, but its been a bumpy downhill ride on interest rates since the fall of 1981. Maybe spring/summer 2016 ...
by MnD
Mon May 07, 2018 7:22 pm
Forum: Investing - Help with Personal Investments
Topic: Why the shift away from the S&P?
Replies: 32
Views: 3959

Re: Why the shift away from the S&P?

Hi nate79. I looked at a performance chart. Not sure if this is the same one but it has the same info if you scroll down: https://www.marketwatch.com/investing/fund/fstvx This link shows Fidelity Total Market ahead of the S&P 500 index for YTD, 1 year and 10 years. And the index doesn't have expens...
by MnD
Mon May 07, 2018 6:34 pm
Forum: Investing - Theory, News & General
Topic: Total Bond - SEC yield breaks 3%
Replies: 97
Views: 10575

Re: Total Bond - SEC yield breaks 3%

BL wrote:
Mon May 07, 2018 5:57 pm
The year to date gain for Total Bond Market is -2.33%.
Two year cumulative total return = 00.05% (BND)
$5.43 per $10K invested.

Image
by MnD
Mon May 07, 2018 3:10 pm
Forum: Investing - Help with Personal Investments
Topic: When did you start drawing profits from taxable?
Replies: 48
Views: 3241

Re: When did you start drawing profits from taxable?

We built up a $70K taxable 100% equity account between 1987-1990 (double-income no kids years) and never added another dime to it. We've never had a cash emergency fund so that account was a combination emergency fund plus an occasional source of extra spending money for big ticket items. We first t...
by MnD
Mon May 07, 2018 2:16 pm
Forum: Investing - Help with Personal Investments
Topic: Need general advice on reallocating an inherited IRA
Replies: 2
Views: 266

Re: Need general advice on reallocating an inherited IRA

I can not think of any reason not to sell bonds funds as soon as you decide you don't want them. Accounts with things like 25 stocks or stock funds and 15 bond funds are not unusual and are typically constructed by an "adviser" who set up a needlessly complex portfolio to make it look like he/she wa...
by MnD
Sun May 06, 2018 2:22 pm
Forum: Investing - Help with Personal Investments
Topic: Vanguard: ETF vs MF
Replies: 38
Views: 3023

Re: Vanguard: ETF vs MF

I think brokerage/banking diversity is over-rated. Move everything to Fidelity for brokerage and Roth's where your 401-K's are already are. Take advantage of extensive cash management features with checking and debit card and 2% cash back credit card. You can even do an auto-rollover t-bill ladder f...
by MnD
Sat May 05, 2018 5:16 pm
Forum: Investing - Theory, News & General
Topic: How do brokerages make $s on cheap index funds?
Replies: 57
Views: 4987

Re: How do brokerages make $s on cheap index funds?

Places like Schwab want the haystack in terms of all your families financial assets. I'm not sure what this means. I have held my investments at various brokerages. Never once has one requested or even expressed an interest in anything else. It refers to some published interviews with Schwab execut...
by MnD
Sat May 05, 2018 3:11 pm
Forum: Investing - Theory, News & General
Topic: How do brokerages make $s on cheap index funds?
Replies: 57
Views: 4987

Re: How do brokerages make $s on cheap index funds?

Places like Schwab want the haystack in terms of all your families financial assets. When its all sorted out they make plenty of money - check out their stock price lately. A selective consumer can do incredibly well at brokerages like Schwab with their index ETF's and Funds and things like their ch...
by MnD
Sat May 05, 2018 2:53 pm
Forum: Investing - Help with Personal Investments
Topic: Ed. Jones rep didn't like our plan, now we're locked out
Replies: 152
Views: 17681

Re: Ed. Jones rep didn't like our plan, now we're locked out

Glad its working out for your folks after the unpleasantness. I've found that most slick and friendly advisors that are providing really bad deals to their clients turn hostile the minute it looks like the game is being downsized or ended. Years ago a coworker ended a relationship with his full serv...
by MnD
Fri May 04, 2018 6:24 pm
Forum: Investing - Theory, News & General
Topic: Don't leave your non-spouse heirs TIRAs with basis, unless you hate them!
Replies: 92
Views: 8256

Re: Don't leave your non-spouse heirs TIRAs with basis, unless you hate them!

Remember, your non-spouse heirs cannot convert their inherited TIRA to a Roth; and cannot combine the inherited IRA with their own IRAs. Barring a major tax rate differential, it seems wiser for the decedent to have converted the TIRA to a Roth before death (granted, not everyone gets that chance.....
by MnD
Fri May 04, 2018 11:25 am
Forum: Investing - Theory, News & General
Topic: Retirees Never Had It Better
Replies: 31
Views: 5021

Re: Retirees Never Had It Better

if by interesting you mean scary :( "the households with heads ages 56-61 accumulate more savings, but the underparticipation problem persists . The median of this group holds only around $25,000. The balances of the 70th and 80th percentiles improve to about $148,000 and $320,000, respectively. Th...
by MnD
Thu May 03, 2018 9:06 pm
Forum: Investing - Theory, News & General
Topic: Retirees Never Had It Better
Replies: 31
Views: 5021

Re: Retirees Never Had It Better

The following study gives more information about the distribution of wealth for “near retirees”: https://www.stlouisfed.org/publications/regional-economist/first-quarter-2018/many-americans-still-lack-retirement-savings Figure 1 50th percentile in this link would correspond to the 2016 federal rese...
by MnD
Thu May 03, 2018 8:58 pm
Forum: Investing - Theory, News & General
Topic: Retirees Never Had It Better
Replies: 31
Views: 5021

Re: Retirees Never Had It Better

Median defined contribution retirement account savings balances (401-K's, IRA's , KEOGH's) for households age 55-64 is $17,000 using the 2013 Federal Reserve household finance data set (Figure 5). Sounds great.
https://www.epi.org/publication/retirement-in-america/
by MnD
Wed May 02, 2018 5:10 pm
Forum: Personal Finance (Not Investing)
Topic: Highest muni mm rates
Replies: 10
Views: 904

Re: Highest muni mm rates

Also, I see that at least one schwab muni MM fund has fee waivers, without which the yield would be lower. The Schwab MM fee waivers, now applied to most or all of their purchased MM funds (per the prospectus) will be maintained as long as Charles Schwab Investment Management Inc. is the adviser. S...
by MnD
Tue May 01, 2018 6:09 pm
Forum: Personal Finance (Not Investing)
Topic: Question on Vanguard Money Market Account Check wise
Replies: 15
Views: 1271

Re: Question on Vanguard Money Market Account Check wise

I use the Vanguard Advantage Account for our primary checking account. You can transfer to/from the account electronically from any other bank, and you can transfer money within your Vanguard accounts. It really functions like a checking account and the checks are drawn on a New York Mellon Bank. T...
by MnD
Mon Apr 30, 2018 6:23 pm
Forum: Personal Finance (Not Investing)
Topic: Money Market Account or Online Savings for Emergency Fund
Replies: 23
Views: 2015

Re: Money Market Account or Online Savings for Emergency Fund

If you already have a non-retirement brokerage account at Schwab, Vanguard, Fidelity etc. putting the funds in the Prime (or muni-bond) money market fund in that account may be advantageous for yield and financial simplification (no need to open/maintain another financial account for savings).