Search found 617 matches

by digit8
Fri May 24, 2019 10:45 am
Forum: Personal Investments
Topic: VTSAX or VTWAX over the next 35 years?
Replies: 173
Views: 21104

Re: VTSAX or VTWAX over the next 35 years?

Over the next 35 years, I'm not sure the difference is enough to sweat over. Someone starting a job today and putting 10, 15% of their income for life into either one of these is probably going to be, objectively, fine. Yeah, they might have some 20/20 hindsight and kick themselves for not going wit...
by digit8
Thu Mar 21, 2019 9:05 am
Forum: Investing - Theory, News & General
Topic: What will be the effect of negative interest rates?
Replies: 28
Views: 2200

Re: What will be the effect of negative interest rates?

With the Fed's abrupt change of course, it now appears likely, to me at least, that the U.S. could eventually (as soon as the next recession) see the same kind of 0% or negative interest rate environment that many others in the industrialized world face now or have faced (in the case of Japan) for ...
by digit8
Sun Mar 03, 2019 10:44 pm
Forum: Personal Investments
Topic: Moving Emergency Fund from I Bonds at Treasury Direct to something at Vanguard?
Replies: 21
Views: 2502

Re: Moving Emergency Fund from I Bonds at Treasury Direct to something at Vanguard?

I used to make the comparison of I Bonds with duct tape for their versatility. I've found in practice a more apt comparison might be with a knickknack shelf- purchases that seemed like a good idea at the time, which become just another item needing maintenance, time and trouble. There are no taxes ...
by digit8
Sun Mar 03, 2019 1:54 pm
Forum: Personal Investments
Topic: Moving Emergency Fund from I Bonds at Treasury Direct to something at Vanguard?
Replies: 21
Views: 2502

Re: Moving Emergency Fund from I Bonds at Treasury Direct to something at Vanguard?

Good decision, TD is a major headache. I'd just auto roll short term treasuries at Fidelity. No cost to buy or sell. +1. I think the problems associated with TD get overblown to some degree, but certainly aren't enough to justify the very moderate difference in returns available via (for me) Vangua...
by digit8
Sun Jan 13, 2019 1:57 pm
Forum: Investing - Theory, News & General
Topic: Vanguard Asset Mix Chart [Vanguard website shows incorrect asset allocation]
Replies: 16
Views: 1279

Portfolio Watch Problem

[Thread merged into here, see below. --admin LadyGeek] Logged in this morning and my (all personal Vanguard, taxable and IRA) portfolio reflects as having 28% "Unknown" composition. Perhaps even more troubling, no single asset I have is at that exact percentage, so I guess parts of several investme...
by digit8
Thu Dec 20, 2018 3:44 pm
Forum: Investing - Theory, News & General
Topic: Does the national debt affect your investing strategies?
Replies: 21
Views: 1437

Re: Does the national debt affect your investing strategies?

Not really, for much the same reason I don't invest in physical gold or some such. In the (highly unlikely) scenario of things getting so horrible that investing that way would make a difference, my portfolio would be the least of my concerns. 95% of my US holdings are total stock and total bond. To...
by digit8
Mon Dec 17, 2018 2:52 pm
Forum: Investing - Theory, News & General
Topic: What Happened to you during the Financial crisis of 2007–2008
Replies: 249
Views: 22287

Re: What Happened to you during the Financial crisis of 2007–2008

Mainly in 2007-2008 I was wrapped up in hating my job at a highly conservative credit union. I spent most of that year having to shut down home equity lines of credit as values shifted,then trying to work out ways members could get them reopened..... A disheartening process at best since it was a ca...
by digit8
Fri Nov 02, 2018 7:48 am
Forum: Investing - Theory, News & General
Topic: I Bond fixed rate = 0.5%
Replies: 90
Views: 9855

Re: I Bond fixed rate = 0.5%

Is I Bond a good place to park some emergency fund? I assume it is based on what I have read so far. But someone above pointed out 1-year Treasury is yielding more and tax-free(??) But I assume that doesn't have the level of liquidity like I Bond. Is that right? Where do you guys park your emergenc...
by digit8
Thu Oct 18, 2018 10:00 am
Forum: Investing - Theory, News & General
Topic: Forever Stamps as an Investment?
Replies: 32
Views: 4074

Re: Forever Stamps as an Investment?

I think it's Andrew Tobias who mentions some executive that bought pallets full of Cepacol mouthwash and pointed out that this executive was essentially protecting himself from inflation by doing so. Buy pretty much anything in bulk, that won't go bad, and you're probably saving yourself some money ...
by digit8
Fri Oct 12, 2018 9:04 am
Forum: Investing - Theory, News & General
Topic: Does it make sense to consider that stocks are 'on sale' when there's a correction?
Replies: 84
Views: 4785

Re: Does it make sense to consider that stocks are 'on sale' when there's a correction?

Like a lot of rules of thumb, "stocks on sale" is a succinct way to put something that only makes sense if you add some qualifiers mentally, foremost among them that while there are no guaruntees in life, you can make an educated guess. It was not unreasonable in 2007-2008 for those hardy souls buyi...
by digit8
Thu Sep 20, 2018 10:08 am
Forum: Investing - Theory, News & General
Topic: Vanguard Switch to Brokerage Accounts
Replies: 60
Views: 10522

Re: Vanguard Switch to Brokerage Accounts

Although it is interesting to hear people's thoughts on the pro and cons of the switch to brokerage accounts, I think the underlying issue most "legacy" account holder have is that they have spent years fine tuning their relationship with Vanguard (especially with regard to the treatment of dividen...
by digit8
Mon Sep 03, 2018 3:03 pm
Forum: Personal Investments
Topic: What to do with cash/emergency fund
Replies: 36
Views: 4251

Re: What to do with cash/emergency fund

Keep in mind that Vanguard does keep the possiblity of imposing a gate suspending withdrawals from Prime in certain circumstances. The odds of it happening are miniscule, but that would be a hard hit to take on a day you needed the money. What does this mean and does it apply to other money market ...
by digit8
Thu Aug 30, 2018 2:43 pm
Forum: Personal Investments
Topic: What to do with cash/emergency fund
Replies: 36
Views: 4251

Re: What to do with cash/emergency fund

Keep in mind that Vanguard does keep the possiblity of imposing a gate suspending withdrawals from Prime in certain circumstances. The odds of it happening are miniscule, but that would be a hard hit to take on a day you needed the money.
by digit8
Mon Jul 16, 2018 8:14 am
Forum: Investing - Theory, News & General
Topic: Are Bonds Always Safe? — A Second Look at U.S. Portfolio Disasters
Replies: 108
Views: 10255

Re: Are Bonds Always Safe? — A Second Look at U.S. Portfolio Disasters

No such thing as "always" safe. You allocate assets recognizing that on any given day some investments will do poorly but can be offset by others that do well in the same conditions. This one protects your principal, that one matches inflation, the other does well during some markets trends but drop...
by digit8
Wed Jul 11, 2018 9:51 am
Forum: Investing - Theory, News & General
Topic: Capping Emergency Fund
Replies: 53
Views: 5557

Re: Capping Emergency Fund

In general the advice/target for an emergency fund is 6 months of expenses. I'm curious at what point in total assets this rule doesn't make sense. For me, never. I put less in then I did when I was starting out, but I continue to contribute regularly. With that said, my EF holdings are mainly a mo...
by digit8
Wed Jul 11, 2018 9:20 am
Forum: Personal Investments
Topic: Where do you keep your Emergency Fund?
Replies: 81
Views: 13662

Re: Where do you keep your Emergency Fund?

I keep way more than I should in my rewards checking which is my real "sleep at night" money. But for purely emergency funds, I have two buckets- cash goes to Vanguard Federal Money Market once a month. I eyeball the balance every quarter or so and if it feels a little overstuffed I move a piece of ...
by digit8
Wed Jul 11, 2018 9:07 am
Forum: Personal Investments
Topic: Target date funds....unsophisticated?
Replies: 64
Views: 5371

Re: Target date funds....unsophisticated?

Target date funds, really? Yup. Really. You’re missing the fact that most people that have lives to live will not rebalance regularly and, for fear of market conditions, may even hesitate to rebalance. Reality trumps theory. It is well worth a few extra basis points in a tax advantaged account to t...
by digit8
Tue Jun 19, 2018 6:49 am
Forum: Investing - Theory, News & General
Topic: I-bonds look pretty bad right now
Replies: 92
Views: 13076

Re: I-bonds look pretty bad right now

Then you pay federal tax but not state and local taxes. You cannot hold an I-bond longer than 30 years. Based on a marginal tax rate of 22%, and assuming that CPI inflation is constant, here is what I got: There is an old joke about the worlds greatest scientest spending 10 years coming up with the...
by digit8
Mon Jun 04, 2018 7:53 am
Forum: Personal Investments
Topic: Is it fine to have 100% of portfolio in VTSAX
Replies: 33
Views: 7618

Re: Is it fine to have 100% of portfolio in VTSAX

Over the next 10 years? Sure, you're fine, better than the average investor in fact. I would say, make a plan for yourself over the 10 years before you think about adding bonds- read up on Bogleheadism and investing in general. Be open to other equities at that time as well. But 30's to 40's just in...
by digit8
Tue May 29, 2018 8:19 am
Forum: Personal Investments
Topic: Emergency Fund Alternatives
Replies: 16
Views: 2108

Re: Emergency Fund Alternatives

^^ Yep, I'm thinking I may do some 50/50 or some other split where 50% is in an online savings account, the rest is invested in a fund(s) that return. Maybe I'll adjust the ratio as time passes, and continue to cover with my brokerages. +1. I've tried just about every possible option and this is th...
by digit8
Thu May 24, 2018 11:43 am
Forum: Investing - Theory, News & General
Topic: Theory: Total World Index a Sure Fire Win [VT/VTWSX]
Replies: 155
Views: 18479

Re: Theory: Total World Index a Sure Fire Win [VT/VTWSX]

FWIW, I think on this thread and the subject in general, there is a lot of combining/conflating the idea of best returns, and good enough returns. There is a not-zero chance that a 100% US Equity portfolio will prove to not perform as well as a total world one over the next 30 years, and a not-zero ...
by digit8
Tue May 22, 2018 1:57 pm
Forum: Investing - Theory, News & General
Topic: Vanguard Announces Plans To Launch Total World Bond ETF
Replies: 30
Views: 4998

Re: Vanguard Announces Plans To Launch Total World Bond ETF

pokebowl wrote:
Mon May 21, 2018 1:06 pm
Now if only they would offer admiral shares of VTWSX.
Still, it's down to a .19 EF, which ain't bad. I think the last time I seriously considered it, I was on the fence at like .32%, so I guess it's time to run the numbers again.....
by digit8
Tue May 15, 2018 8:37 am
Forum: Personal Investments
Topic: A Very Unique Inflation Fund
Replies: 11
Views: 1665

Re: A Very Unique Inflation Fund

That's a pass hard enough to cut diamonds for me personally. To much we don't know, and what we do know about is done more easily, cheaper through other means. If you go with this, at least keep in mind that it's not intended to be your primary holding, just supplemental.
by digit8
Tue May 08, 2018 8:48 am
Forum: Personal Investments
Topic: Emergency Fund Investment Plan
Replies: 24
Views: 2960

Re: Emergency Fund Investment Plan

OK, I'm probably going to get flamed for this but going to put it out there anyway . . . I don't have an "emergency fund", per se. Never have, never will. What I do have is a HELOC. I promise to try not to flame, because 95% of your reasoning makes perfect sense to me. Still, as a guy who spent mos...
by digit8
Thu Apr 26, 2018 7:58 am
Forum: Personal Investments
Topic: Considering a CD ladder
Replies: 46
Views: 10977

Re: Considering a CD ladder

No, it's fine. You have some minor misconceptions (regarding the differences between bonds and bond funds), but that's OK. +1 on both counts. I think it's worth giving some serious thought to some of the counterpoints and alternative plans that have been proposed here- but in the end the CD ladder ...
by digit8
Wed Apr 11, 2018 8:48 am
Forum: Personal Investments
Topic: Emergency Fund Investing
Replies: 24
Views: 2568

Re: Emergency Fund Investing

I call it the passive/agressive approach: 6 months in an MMSA, with regular additional deposits. Once it gets to a decent amount above 6 months worth- usually $500 bucks or so- I move the excess into a taxable S&P 500 fund.
by digit8
Tue Mar 27, 2018 11:58 am
Forum: Investing - Theory, News & General
Topic: [Vanguard sends out erroneous "not enough money in settlement fund" notice]
Replies: 94
Views: 8549

Re: Concerns with Vanguard

As far as security concerns go, I've worked at financial instituions my whole life and the major ones all have similar strengths and concerns. There is a case for diversifying to reduce the risk of losing everything to one hacker- but a counter argument that it's in effect multiplying the number of ...
by digit8
Tue Mar 27, 2018 8:36 am
Forum: Personal Investments
Topic: Is anyone buying CDs now instead of I bonds?
Replies: 22
Views: 4349

Re: Is anyone buying CDs now instead of I bonds?

You can't really know what the optimal choice is until after the fact. But I've gone from being a die-hard I Bond advocate to thinking it's not worth the hemming and hawing about the difference between the two. Sure, inflation could go crazy high, but it could also continue to be unexpectedly low- a...
by digit8
Tue Feb 27, 2018 9:45 am
Forum: Investing - Theory, News & General
Topic: What exactly happened in Japan...and can it happen here?
Replies: 52
Views: 11394

Re: What exactly happened in Japan...and can it happen here?

Can it happen here? Yes, anything can. Is it likely enough to be in my Top 10 or 20 worries? No. Tough to talk about without straying into politics, but for the most part you're talking about two countries with significant differences in their national economy, and majorly different roles in the wor...
by digit8
Tue Feb 27, 2018 9:36 am
Forum: Investing - Theory, News & General
Topic: Are CD's or "savings accounts" allowed in 403b's?
Replies: 19
Views: 1295

Re: Are CD's or "savings accounts" allowed in 403b's?

No dig on the OP's perfectly valid and reasonable question- but I'd argue it's an interesting picture of a general mood shift, how we've gone from multiple (so many!) threads with versions of "should we invest more in foreign equities?" to multiple takes on "Bonds or CD's?" (not exactly the OP's poi...
by digit8
Mon Feb 19, 2018 4:53 pm
Forum: Personal Investments
Topic: Sell me on the benefits of an emergency fund
Replies: 119
Views: 9353

Re: Sell me on the benefits of an emergency fund

On an emotional level, however, being able to write a check and be done with the financial piece of a major crisis can be a lifesaver. In my experience, when the basement is flooded or the car is crashed or the kid is in the hospital, the very last thing I'm up for is the self-inflicted additional ...
by digit8
Mon Feb 19, 2018 11:27 am
Forum: Personal Investments
Topic: Sell me on the benefits of an emergency fund
Replies: 119
Views: 9353

Re: Sell me on the benefits of an emergency fund

On a logical level, there is a point where emergency funds aren't a requirement. On an emotional level, however, being able to write a check and be done with the financial piece of a major crisis can be a lifesaver. In my experience, when the basement is flooded or the car is crashed or the kid is i...
by digit8
Sat Feb 10, 2018 10:19 am
Forum: Personal Investments
Topic: CD Ladder or Treasuries ?
Replies: 17
Views: 3525

Re: CD Ladder or Treasuries ?

I think I Bonds make sense before Treasuries. Split your savings between I Bonds and CD's and you've got a pretty good "safe" portfolio.
by digit8
Fri Feb 02, 2018 11:49 pm
Forum: Investing - Theory, News & General
Topic: Total Bond Market Index Fund vs. CDs?
Replies: 39
Views: 10681

Re: Total Bond Market Index Fund vs. CDs?

I started with a taxable CD ladder as an emergency fund but kept up the practice of shoveling spare funds into it until it grew well beyond 6 months needs. I've found I sleep quite comfortably at night counting that money toward the bond portion of my AA.
by digit8
Tue Jan 23, 2018 8:13 pm
Forum: Investing - Theory, News & General
Topic: Vanguard CEO - "4-4.5% Market Returns Over The Next Decade"
Replies: 35
Views: 6550

Re: Vanguard CEO - "4-4.5% Market Returns Over The Next Decade"

Just felt like tossing this one out there for general consumption and conversation... Vanguard CEO Tim Buckley has just stated he believes the market will return a paltry 4 - 4.5% return over the next decade on a 60 stock /40 bond portfolio. Any thoughts on this? Mainly "ugh"- less about me agreein...
by digit8
Mon Jan 01, 2018 7:10 pm
Forum: Investing - Theory, News & General
Topic: Savings Bond Wizard to be eliminated 5/18
Replies: 71
Views: 17866

Re: Savings Bond Wizard to be eliminated 5/18

Whakamole wrote:
Mon Jan 01, 2018 10:45 am
I get the distinct impression that so few people use savings bonds now, which is why they are scaling down services. I would not be surprised if they started grandfathering these.
Is there any kind of public record of how much money has gone into I Bonds?
by digit8
Wed Dec 27, 2017 9:28 am
Forum: Personal Investments
Topic: Creating a Mid-Tier Emergency Fund
Replies: 21
Views: 3308

Re: Creating a Mid-Tier Emergency Fund

Honestly? I've tried probably every possible option (I Bonds, CD's, bond funds, etc) and after letting them run for awhile discovered the increased returns were negligible. Certainly, not worth the time and trouble I put into research, rate hunting, and generally trying to squeeze every last dollar ...
by digit8
Sat Dec 23, 2017 8:10 am
Forum: Investing - Theory, News & General
Topic: Saving for the crash
Replies: 58
Views: 8997

Re: Saving for the crash

I was on another forum mostly unrelated to investment, and a bunch of people were saying that they're setting aside a large amount of cash for the next big market crash (e.g., 2008). I think I know what folks will say about this plan (e.g., money not making money while you wait), but I'd love to he...
by digit8
Sat Dec 16, 2017 11:13 am
Forum: Personal Investments
Topic: I bonds: Should I put money on I bonds rather than keep them in a savings account
Replies: 26
Views: 4559

Re: I bonds: Should I put money on I bonds rather than keep them in a savings account

If you use a bucket system to keep some cash available for at least the initial 12 month period, I Bonds make an all-around superior savings account- big purchases, emergency funds, and any other purpose you want your money kept ultra safe.
by digit8
Sat Aug 12, 2017 5:54 pm
Forum: Personal Investments
Topic: Where To Put My Emergency Fund?
Replies: 58
Views: 9166

Re: Where To Put My Emergency Fund?

I love the idea of Ibonds....but moved my emergency fund over to a CD which takes additional deposits and has a small penalty for breaking it,held in the same credit union as my checking. Just decided the tradeoff of possibly losing some inflation protection for a simpler way to track everything was...
by digit8
Sat Aug 05, 2017 5:55 pm
Forum: Personal Investments
Topic: Stock market bubble
Replies: 26
Views: 3735

Re: Stock market bubble

My wife and I just hit our 15th anniversary so I was looking at our investment returns over the same period (we have an age difference so I review and consider making AA adjustments around the anniversary instead of one of our birthdays). Lo and behold, despite having barely reduced my stock allocat...
by digit8
Sat Jul 29, 2017 10:25 am
Forum: Personal Investments
Topic: Should emergency funds be included in AA?
Replies: 45
Views: 4149

Re: Should emergency funds be included in AA?

I don't include it. What's the worst that could happen, I wake up one morning and find out I can retire slightly earlier then I thought because I didn't have as many emergencies as I thought I would?
by digit8
Sun Jul 23, 2017 11:34 am
Forum: Personal Investments
Topic: When doing retirement planning, do you count your spouse's savings?
Replies: 42
Views: 5667

Re: When doing retirement planning, do you count your spouse's savings?

My wife has a state pension and 403(b) plan that I do not count in our retirement planning- partly because I'm just too lazy to figure out how to best add it in, partly because I figure it never hurts to have a hedge compensating for the (IMHO) overly rosy projections of some retirement calculators.
by digit8
Sun Jul 02, 2017 11:44 am
Forum: Personal Investments
Topic: When, if ever, does it make sense to cease contributing the 401K max?
Replies: 40
Views: 6715

Re: When, if ever, does it make sense to cease contributing the 401K max?

Sounds like it doesn't apply in your case, but there are plenty of employers whose 401k options are sufficiently terrible to make taxable investing a better option. There are still a sadly large variety of outfits sticking with high-cost, low performing options because corporate cut a deal, or becau...
by digit8
Sat Jun 24, 2017 9:29 am
Forum: Investing - Theory, News & General
Topic: "Home Bias Blues: Investors really should get out more. The reasons for sticking to local stocks are fewer by the day."
Replies: 52
Views: 7065

Re: "Home Bias Blues: Investors really should get out more. The reasons for sticking to local stocks are fewer by the da

TYes, the United States has done remarkably well in the last century, but the United Kingdom looked a lot more certain in the 100 years before that. Financial empires fall -- whether corporate or political -- I am not willing to bet on the longevity of any particular empire. Although it hasn't (yet...
by digit8
Sun Apr 09, 2017 11:40 am
Forum: Personal Investments
Topic: Vanguard funds for emergency cash
Replies: 14
Views: 2646

Re: Vanguard funds for emergency cash

I'd go money market. Why take even the tiniest chances when you have plans to tuck the money away in (IMHO) the perfect cash vehicle before too much longer?
by digit8
Sun Apr 09, 2017 11:37 am
Forum: Personal Investments
Topic: Timing of I-bonds purchase
Replies: 27
Views: 4627

Re: Timing of I-bonds purchase

I put money in I bonds purely as emergency funds, planning (hoping) that I won't be touching the money for 10, 20 years. I haven't yet seen a jump in the rates between 6 month periods that has been big enough where I felt salty about it, that if I'd just waited it would have really made a major impa...
by digit8
Sun Feb 26, 2017 12:31 pm
Forum: Personal Investments
Topic: What Amount of My Bonds Should Be I Bonds?
Replies: 10
Views: 1767

Re: What Amount of My Bonds Should Be I Bonds?

Don't get caught up in small details. Your portfolio will likely outweigh Ibond allocations by a good bit. You're doing fine. I-bond will do what they're meant do - provide inflation risk protection to your portfolio, and will likely not have the same returns as a regular bond funds. Consider using...
by digit8
Sat Jan 14, 2017 10:15 am
Forum: Personal Investments
Topic: Pay off HELOC instead of having an EF?
Replies: 11
Views: 1281

Re: Pay off HELOC instead of having an EF?

I don't keep much cash by choice. I have a HELOC, a margin credit line, and credit cards. All of which may not be there when you need them or at least not a reasonable cost. If your home value drops your HELOC credit line may be cut... When it became clear just how bad 2008 was going to be, the fin...
by digit8
Wed Dec 28, 2016 6:45 am
Forum: Investing - Theory, News & General
Topic: Does Vanguard always have our best interests in mind?
Replies: 55
Views: 5747

Re: Does Vanguard always have our best interests in mind?

To paraphrase Churchill, I think Vanguard is the worst place to invest, except for all the other places. I think the OP is representative exactly of the spectrum of reactions from consumers one might expect when dealing with abusiness (of any kind) that's doing it's job- the first three paragraphs b...