Search found 469 matches

by badger42
Thu May 23, 2019 3:01 pm
Forum: Investing - Theory, News & General
Topic: Your Favorite High-Yield Bond Funds?
Replies: 17
Views: 1334

Re: Your Favorite High-Yield Bond Funds?

I've been quite happy with the Vanguard high-yield fund for my high-yield allocation. It offers active management (which is good in the HY space - much less of an efficient market than, say, US large cap equities), reasonable ER (13bp for 50k or more, 23bp otherwise), and a strong track record. Note...
by badger42
Fri May 17, 2019 4:37 pm
Forum: Personal Consumer Issues
Topic: Instant Coffee?
Replies: 67
Views: 3924

Re: Instant Coffee?

I drink coffee, at least once a day. I am not particularly picky (beans from Costco, ground at home, brewed in a middle of the road auto drip coffee pot, and will happily drink any 'reasonable' coffee as plain old black brewed coffee). If you live somewhere approximating civilization, please don't b...
by badger42
Fri May 17, 2019 10:02 am
Forum: Personal Consumer Issues
Topic: Synthetic oil or not for very low mileage auto?
Replies: 47
Views: 3061

Re: Synthetic oil or not for very low mileage auto?

Synthetic and chance once a year. It'll give better protection for an infrequently driven car, and the marginal cost is minimal.
by badger42
Fri May 17, 2019 7:43 am
Forum: Personal Investments
Topic: 5.5% Load 403(b) Roth vs Low Cost Taxable Account
Replies: 81
Views: 3343

Re: 5.5% Load 403(b) Roth vs Low Cost Taxable Account

A load can be thought of as a one time expense ratio that from a basic standpoint can be divided over the number of years that you would hold the contribution before rolling over to an IRA and using a lower ER fund. So 5.5% load for a contribution held for 10 years is 0.55% added onto the ER of the...
by badger42
Thu May 16, 2019 10:25 pm
Forum: Personal Investments
Topic: 5.5% Load 403(b) Roth vs Low Cost Taxable Account
Replies: 81
Views: 3343

Re: 5.5% Load 403(b) Roth vs Low Cost Taxable Account

A load can be thought of as a one time expense ratio that from a basic standpoint can be divided over the number of years that you would hold the contribution before rolling over to an IRA and using a lower ER fund. So 5.5% load for a contribution held for 10 years is 0.55% added onto the ER of the...
by badger42
Thu May 16, 2019 4:05 pm
Forum: Personal Investments
Topic: 5.5% Load 403(b) Roth vs Low Cost Taxable Account
Replies: 81
Views: 3343

Re: 5.5% Load 403(b) Roth vs Low Cost Taxable Account

A load can be thought of as a one time expense ratio that from a basic standpoint can be divided over the number of years that you would hold the contribution before rolling over to an IRA and using a lower ER fund. So 5.5% load for a contribution held for 10 years is 0.55% added onto the ER of the...
by badger42
Thu May 16, 2019 3:12 pm
Forum: Personal Investments
Topic: 5.5% Load 403(b) Roth vs Low Cost Taxable Account
Replies: 81
Views: 3343

Re: 5.5% Load 403(b) Roth vs Low Cost Taxable Account

OK, so you have an overall tax rate of 20% for calculating tax drag. In taxable, something like VTI will give you about 2% dividend yield, which means 0.4% tax drag. Tax on gains at time of sale is 20% as well. Load is 5.75%. If we assume 0.05% expenses, total taxable tax+fee drag is 0.45%, vs 0.7% ...
by badger42
Thu May 16, 2019 1:53 pm
Forum: Personal Investments
Topic: 5.5% Load 403(b) Roth vs Low Cost Taxable Account
Replies: 81
Views: 3343

Re: 5.5% Load 403(b) Roth vs Low Cost Taxable Account

What are your capital gains / qualified dividends brackets?
by badger42
Thu May 16, 2019 1:29 pm
Forum: Personal Finance (Not Investing)
Topic: How do Bogleheads update their 401k contributions once they are able to max?
Replies: 19
Views: 1584

Re: How do Bogleheads update their 401k contributions once they are able to max?

Contributions will automatically stop when you hit the max. If you have a match, understand whether it has a true-up. If no match, or match with true-up, you don't need to do anything. IF you have a match without a true-up, reduce as needed to make sure you only max at the end of the year and still ...
by badger42
Wed May 15, 2019 6:50 pm
Forum: Personal Finance (Not Investing)
Topic: new renter rent to be paid by insurance company
Replies: 15
Views: 1529

Re: new renter rent to be paid by insurance company

The 1099 should be a non-issue as long as you're properly reporting your rental income - it will just reflect what they paid you.
by badger42
Tue May 14, 2019 9:28 am
Forum: Personal Investments
Topic: 10b5(1) basis methods
Replies: 0
Views: 81

10b5(1) basis methods

So, I have an interesting decision to make - for (reasons redacted) there is some chance I will need to enter into a rule 10b5(1) trading plan with my current employer. I expect a fair bit of volatility in the stock, and am attempting to (ahead of time) do something approximating tax optimization an...
by badger42
Mon May 13, 2019 10:43 am
Forum: Investing - Theory, News & General
Topic: 100% stocks with 3% SWR with 60 years retirement period
Replies: 40
Views: 3661

Re: 100% stocks with 3% SWR with 60 years retirement period

The thing about blindly extending a simulation is that we have to remember 60 years is a REALLY long time. 60 years ago was 1959. The world was VERY different in 1959 (and not just because my parents were little kids). The global economy was still being rebuilt after World War II, computers were not...
by badger42
Tue May 07, 2019 10:15 pm
Forum: Personal Consumer Issues
Topic: New smartphone recommendations
Replies: 20
Views: 1765

Re: New smartphone recommendations

No problems at all with unlocked Pixel or Motorola phones. The new Pixel 3a looks like a really solid mid-range offering. (Also, typing this on an unlocked Pixel 3XL on T-Mobile)
by badger42
Tue Apr 30, 2019 6:38 pm
Forum: Investing - Theory, News & General
Topic: WSJ--How Schwab Ate Wall Street
Replies: 82
Views: 9123

Re: Brokerage income source may surprise you

I invest at Schwab and keep a zero balance in the settlement account. Why would anybody keep money in a settlement account? I also invest at Vanguard, and keep a zero balance in their settlement account, too. I keep 7-12k of slush in the settlement account. I'd rather not have to sell something for...
by badger42
Tue Apr 30, 2019 11:34 am
Forum: Investing - Theory, News & General
Topic: WSJ--How Schwab Ate Wall Street
Replies: 82
Views: 9123

Re: WSJ--How Schwab Ate Wall Street

The timing of this is interesting. We've had a bucket of Schwab accounts (joint, checking, his IRA, her IRA, etc) for a long time. Schwab has been great in terms of offerings, services, costs, etc. (we also have assets with Fidelity and Vanguard, mostly due to employer plans) Also a disclaimer - our...
by badger42
Mon Apr 29, 2019 7:05 pm
Forum: Personal Finance (Not Investing)
Topic: making the leap to online only banking-- updated reviews on Fidelity CMA or Schwab High Yield?
Replies: 25
Views: 1993

Re: making the leap to online only banking-- updated reviews on Fidelity CMA or Schwab High Yield?

We've been banking with Schwab for many years, no complaints. Customer Service is fine, ATM fee reimbursement works perfectly, and depositing cash is a non-issue for us (in the unlikely event we have too much cash we'll just use it for the next household Costco run) We also have local Schwab offices...
by badger42
Mon Apr 29, 2019 11:38 am
Forum: Investing - Theory, News & General
Topic: Thoughts on this Forbes article? "Why Most Index Funds And ETFs Are Not Good Investments"
Replies: 76
Views: 10543

Re: The counterargument [Index investing is not a good strategy for most]

There are places index investing works great. There are places where index investing really isn't optimal. For example, let's look at bonds. One extreme: An active manager adds basically zero value to a short term treasury bond fund. You're better off paying less for an algorithm. Everything in your...
by badger42
Mon Apr 29, 2019 11:15 am
Forum: Personal Finance (Not Investing)
Topic: Do insurance cos need SS number to quote auto & home?
Replies: 10
Views: 796

Re: Do insurance cos need SS number to quote auto & home?

Called 2 insurance companies to get quotes for home owners & auto insurance. Both companies want my social security number so they can "pull reports". They both said that I should not worry, that the process is "safe". But I am very wary of handing out my SS #. I declined to give them the number an...
by badger42
Tue Apr 23, 2019 2:46 pm
Forum: Personal Investments
Topic: Is company’s 401k match based on base salary or social security salary?
Replies: 41
Views: 2677

Re: Is company’s 401k match based on base salary or social security salary?

It really depends on the employer. Most recent previous employer based it on base+bonus (but also had a true-up). RSU counted towards SS income (until you maxed SS) but not the match. Employer before that did a match strictly based on your actual contribution, with no tie to salary. Read the fine pr...
by badger42
Mon Apr 22, 2019 9:39 am
Forum: Personal Finance (Not Investing)
Topic: Professional Liability Insurance - Consulting Business
Replies: 11
Views: 657

Re: Professional Liability Insurance - Consulting Business

Good Morning, I am ready to take the next step to start my own professional IT consulting business. I have been working as a 1099 IT consultant for some years. I am want to be able to bid on work and not have to go through a middle man. What type of professional liability insurance should I be look...
by badger42
Fri Apr 19, 2019 9:24 am
Forum: Personal Consumer Issues
Topic: Windows 7 end of support - Jan 14, 2020
Replies: 69
Views: 3624

Re: Windows 7 end of support - Jan 14, 2020

If something is connected to the Internet and runs Windows, it should run windows 10, period full stop. Running windows 7 means your computer is likely to be the Typhoid Mary of your network and networks around you. It's also far more likely to be taken over by malware, ransomware, or just general n...
by badger42
Wed Apr 17, 2019 8:08 am
Forum: Personal Finance (Not Investing)
Topic: Question on compromised credit cards
Replies: 20
Views: 1170

Re: Question on compromised credit cards

Do you get paper statements? That's an easy route to compromise if somebody 'borrowed' your snail mail.
by badger42
Mon Apr 08, 2019 7:02 pm
Forum: Personal Consumer Issues
Topic: Trader Joe's Fans - good value?
Replies: 138
Views: 18387

Re: Trader Joe's Fans - good value?

When I shop at Trader Joe's I have the impression that, within reason, you name it, they have it--but only one kind , never a choice. Is that your impression, too? If so, is that a bug or a feature? Yes that Freakonomics podcast gets into this. Apparently TJ has hit on something with offering less ...
by badger42
Tue Apr 02, 2019 6:04 pm
Forum: Personal Investments
Topic: The tactics of Withdrawal -McClung model
Replies: 14
Views: 1403

Re: The tactics of Withdrawal -McClung model

McClung is no doubt brilliant, but IMO his work has a critical flaw that's shared with a lot of other work BH tend to obsess over - if you take the returns over the last hundred years, you can build some really weird models that backtest well, because you're effectively optimizing your models for th...
by badger42
Fri Mar 22, 2019 6:00 pm
Forum: Personal Consumer Issues
Topic: Costco Car Rental unavailable in March 2020?
Replies: 7
Views: 974

Re: Costco Car Rental unavailable in March 2020?

Give https://www.autoslash.com/ a shot. They've blown everybody else out of the water for me when I hit unusual situations such as one-way rentals. I would call 30 days a similar unusual situation.
by badger42
Thu Mar 21, 2019 10:43 am
Forum: Personal Consumer Issues
Topic: Overheating laptop - no good options
Replies: 19
Views: 696

Re: Overheating laptop - no good options

Start by blowing (not vacuuming) all of the dust out of the laptop. Either use a vacuum with a blower port and appropriate nozzle (if you already own one) or a can of dusting gas (use in a well ventilated area!). If that doesn't work, I'll second the comment on heatsink compound - it can degrade ove...
by badger42
Tue Mar 19, 2019 9:04 am
Forum: Personal Investments
Topic: 5G, AI (Artificial Intelligence), and Cyber Security ETF Suggestions?
Replies: 12
Views: 1003

Re: 5G, AI (Artificial Intelligence), and Cyber Security ETF Suggestions?

https://www.ishares.com/us/products/272532/ishares-exponential-technologies-etf None of the top 10 there have a meaningful footprint in AI, cybersecurity, or 5G. This is not investment advice, and based only on public information, but: AI - Google/Alphabet is way ahead of most of the world (DeepMin...
by badger42
Mon Mar 18, 2019 8:41 pm
Forum: Personal Consumer Issues
Topic: Uber fraud - what to do?
Replies: 28
Views: 3537

Re: Uber fraud - what to do?

Most likely, the driver just kept driving after dropping you off. It happens once in a while, customer service can generally figure it out pretty quickly if you report it. (It's happened to me - once on Uber, once on Lyft. Both took care of it with no issues.)
by badger42
Fri Mar 15, 2019 4:29 pm
Forum: Personal Finance (Not Investing)
Topic: Letting umbrella insurance lapse
Replies: 30
Views: 2593

Re: Letting umbrella insurance lapse

My umbrella insurance is up for renewal. I'm considering not renewing and self-insuring instead, at least while I reevaluate my program. I have the financial wherewithal to cover claims up to my current policy limit anyway, so I'm not losing out on much in the interim. That doesn't mean you should ...
by badger42
Wed Mar 13, 2019 5:50 pm
Forum: Personal Finance (Not Investing)
Topic: How many companies have you worked for?
Replies: 125
Views: 6417

Re: How many companies have you worked for?

Since undergrad, 19 years across 7 actual employers, but did work for many more companies (two were consulting companies, one was myself doing independent consulting. I think when I was in consulting there were weeks where I billed time to as many as 10-12 projects, as much of my role was "troublesh...
by badger42
Mon Mar 11, 2019 3:22 pm
Forum: Investing - Theory, News & General
Topic: Sell RSUs when stock is significantly down?
Replies: 20
Views: 1293

Re: Sell RSUs when stock is significantly down?

As a general rule, I am a strong proponent of sell on vest, but all RSUs are local. If I ran into your situation, I would consider holding back maybe 20-30% of the net vest to see if things came back, but probably not more than that. (e.g. net vest 500, after taxes maybe 350 shares; there's no major...
by badger42
Mon Mar 11, 2019 11:42 am
Forum: Investing - Theory, News & General
Topic: Strategy of all bonds in Roth and SEP IRAs
Replies: 6
Views: 443

Re: Strategy of all bonds in Roth and SEP IRAs

AA is Asset Allocation 55% Equities, 20% bonds, 25% cash (most of that cash is an annuity earning ~7%. It was opened back in the 1990s) Well then, look at your tax situation. If you're paying 0% on LT capital gains, bonds in pre-tax/roth might make sense. If you're paying 15% or more on LT capital ...
by badger42
Mon Mar 11, 2019 12:21 am
Forum: Investing - Theory, News & General
Topic: Strategy of all bonds in Roth and SEP IRAs
Replies: 6
Views: 443

Re: Strategy of all bonds in Roth and SEP IRAs

I have heard this is a good idea. I have heard it is crazy. What is the right answer. :confused It could be either. What's your AA? How constrained are you in tax advantaged vs taxable space? Personally, I have the least tax efficient bonds in pre-tax (not Roth) and the more tax efficient ones in t...
by badger42
Sun Mar 10, 2019 11:34 pm
Forum: Investing - Theory, News & General
Topic: Strategy of all bonds in Roth and SEP IRAs
Replies: 6
Views: 443

Re: Strategy of all bonds in Roth and SEP IRAs

I have heard this is a good idea. I have heard it is crazy. What is the right answer. :confused It could be either. What's your AA? How constrained are you in tax advantaged vs taxable space? Personally, I have the least tax efficient bonds in pre-tax (not Roth) and the more tax efficient ones in t...
by badger42
Thu Mar 07, 2019 10:49 pm
Forum: Personal Investments
Topic: Should I Use my Company's 10b5-1 Plan or Manually Sell my RSUs
Replies: 3
Views: 263

Re: Should I Use my Company's 10b5-1 Plan or Manually Sell my RSUs

"Set and forget" is well worth the $29.95/mo IMO. A 10b5-1 also protects you against unexpected blackout periods (which do happen!).
by badger42
Thu Mar 07, 2019 10:19 am
Forum: Personal Consumer Issues
Topic: Who Can I Hire to Evaluate Heating Situation in my Home?
Replies: 34
Views: 2065

Re: Who Can I Hire to Evaluate Heating Situation in my Home?

Nest thermostats try to be 'smart'. They were really built for forced air heating/cooling, where temperature changes can happen fairly quickly. Your forced hot water baseboards are slow to warm and slow to cool - think 'steering a boat, but the nest thinks it's steering a Miata'. I would try a $20 d...
by badger42
Thu Mar 07, 2019 12:57 am
Forum: Personal Consumer Issues
Topic: Advice on IT Certification program
Replies: 109
Views: 5965

Re: Advice on IT Certification program

“This career certificate is designed to provide students with technical understanding of computer technology, networking and security, as well as the communication skills and professionalism required of all entry-level IT professionals. Skills included software and hardware installation, network co...
by badger42
Wed Mar 06, 2019 10:55 am
Forum: Personal Finance (Not Investing)
Topic: Unexpected Issue with our Umbrella Policy
Replies: 30
Views: 3634

Re: Unexpected Issue with our Umbrella Policy

This is normal. All adult members of your household need the underlying coverage because it is often difficult to sort out who did what (from a liability POV) after the fact. It also eliminates incentives for fraud wrt, say, who was actually driving at a specific time. And unless you are judgment pr...
by badger42
Tue Mar 05, 2019 11:41 am
Forum: Investing - Theory, News & General
Topic: 20% BBB "junk" In VUSFX - where are the safe bond funds?
Replies: 13
Views: 1469

Re: 20% BBB "junk" In VUSFX - where are the safe bond funds?

There's another option - if you think the bonds are actually junk, why not buy junk to begin with and get the higher return for your risk?

Maybe balance the overall risks by buying more treasuries / TIPs. I'd much rather have (VWEHX/VWEAX + TIPS) than IG Corporates.
by badger42
Tue Mar 05, 2019 8:51 am
Forum: Personal Finance (Not Investing)
Topic: TaxAct Joint Return vs. Separate Returns Analysis Bug?
Replies: 2
Views: 238

Re: TaxAct Joint Return vs. Separate Returns Analysis Bug?

Seriously - try a different package eg TurboTax. I used TaxAct for years but 2018 is a real mess. Feels like a major rewrite with inadequate QA. (Got as far as the nondeductible IRA related crashes - now fixed I think - and bailed)
by badger42
Mon Mar 04, 2019 7:47 pm
Forum: Investing - Theory, News & General
Topic: Role of Pension and SS in determining FI number.
Replies: 35
Views: 3253

Re: Role of Pension and SS in determining FI number.

I don't have a pension, and use SS as longevity insurance (so basically ignore it from a planning POV, but we'll have a 20-25yr gap between FI and taking SS at 70)

It does, however, give some additional safety margin to using a 4% SWR as a planning number.
by badger42
Mon Mar 04, 2019 12:11 pm
Forum: Personal Investments
Topic: Asset Allocation - Cash Position
Replies: 18
Views: 1583

Re: Asset Allocation - Cash Position

I count cash as fixed income, and bucket it with CDs and short-ish term treasuries as within FI. But cash for us is a pretty minimal slush fund because anything else is invested, even if it's 6-month or 1-year treasuries for the short end.
by badger42
Mon Mar 04, 2019 11:52 am
Forum: Personal Investments
Topic: Bonds in taxable vs tax-exempt accounts and growth of account
Replies: 17
Views: 1510

Re: Bonds in taxable vs tax-exempt accounts and growth of account

There are tons of opinions on this. Personally, I put treasuries in taxable (high tax state, so still some tax break), and corporate bonds in tax-exempt. TIPS are split but but a little heavier in tax-exempt.
by badger42
Sun Mar 03, 2019 11:00 am
Forum: Personal Finance (Not Investing)
Topic: How much does owning vehicles (cost/month)
Replies: 53
Views: 3898

Re: How much does owning vehicles (cost/month)

Nice to see the calculations from everyone on car ownership....anyone done the math on just using Uber/Lyft for everything? Family of 4 - see if it's cheaper than owning a car. I did a back of the napkin math on just using Uber/Lyft to and from work (5mi one way) and where I live it was going to be...
by badger42
Sat Mar 02, 2019 5:50 pm
Forum: Personal Finance (Not Investing)
Topic: How much does owning vehicles (cost/month)
Replies: 53
Views: 3898

Re: How much does owning vehicles (cost/month)

How much do you want to fully load the cost? Do you count depreciation? A reasonable yield on the value of the car if it weren't tied up in the car? Figuring taxes, insurance, depreciation, maintenance, alternative use of cash, etc - we determined at one point that it cost on the order of $4k/yr for...
by badger42
Fri Mar 01, 2019 7:21 pm
Forum: Personal Finance (Not Investing)
Topic: Tell The Truth to Boss Why I'm Leaving? (More Money)
Replies: 78
Views: 8205

Re: Tell The Truth to Boss Why I'm Leaving? (More Money)

"Boss, I really enjoy working here, the team, the work, and the leadership is great. I have recently received a job offer, which is a significant increase in compensation, which I cannot refuse. At the end of the day, I need to support my family, so today I offer my resignation. Thank you so much f...
by badger42
Fri Mar 01, 2019 12:46 pm
Forum: Personal Finance (Not Investing)
Topic: Advice at 60
Replies: 52
Views: 4812

Re: Advice at 60

Do your skills translate to consulting work in your industry? Consulting firms, particularly niche ones in an industry, are generally much more concerned about your ability to do useful billable work than they are about whether you have a degree. Are there smaller companies in your industry where yo...
by badger42
Thu Feb 28, 2019 7:23 pm
Forum: Investing - Theory, News & General
Topic: The Extraordinary Upside Potential Of Sequence Of Return Risk In Retirement - Michael Kitces
Replies: 91
Views: 7296

Re: The Extraordinary Upside Potential Of Sequence Of Return Risk In Retirement - Michael Kitces

Skimmed over this Kitces article, and I'm pretty relieved to know that Boglehead VPW pretty much covers and addresses everything that he wrote about. In short, it has no sequence of return risk, and it's designed to gradually spend into principle during your lifetime instead of maximizing your chan...
by badger42
Thu Feb 28, 2019 4:24 pm
Forum: Investing - Theory, News & General
Topic: The Extraordinary Upside Potential Of Sequence Of Return Risk In Retirement - Michael Kitces
Replies: 91
Views: 7296

Re: The Extraordinary Upside Potential Of Sequence Of Return Risk In Retirement - Michael Kitces

Skimmed over this Kitces article, and I'm pretty relieved to know that Boglehead VPW pretty much covers and addresses everything that he wrote about. In short, it has no sequence of return risk, and it's designed to gradually spend into principle during your lifetime instead of maximizing your chan...
by badger42
Thu Feb 28, 2019 2:50 pm
Forum: Investing - Theory, News & General
Topic: The Extraordinary Upside Potential Of Sequence Of Return Risk In Retirement - Michael Kitces
Replies: 91
Views: 7296

Re: The Extraordinary Upside Potential Of Sequence Of Return Risk In Retirement - Michael Kitces

Well, the dominant form of retirement planning in the US is is probably closer to no plan whatsoever, but let's leave that aside. I could be wrong, but I don't think the median salary/net worth of the 401lK/IRA customers of Vanguard is the top 10%. Yet the retirement planning advice given on Vangua...