Search found 214 matches

by Bimmer
Thu Feb 22, 2024 2:36 pm
Forum: Personal Finance (Not Investing)
Topic: Mortgage recast or not
Replies: 5
Views: 549

Re: Mortgage recast or not

Hello, We bought a house in late 2022, with a loan of about ~1.5M for 30yr fixed. We decided to put down a large lump sum towards principal this month, bringing the balance down to ~1.2M. Now, we have the option to recast the mortgage (i.e. same rate and same term). I am trying to figure out if we should just continue to keep making our current payment OR recast the mortgage to lower the monthly payment and then pay extra principal every month. Which scenario would be more desirable to pay less interest? The Well Fargo recast letter states: "By recasting your mortgage, the principal and interest portion of the monthly mortgage payment will decrease, but your mortgage term will remain the same. Because you'll be making payments for the...
by Bimmer
Wed Jan 17, 2024 1:08 am
Forum: Personal Finance (Not Investing)
Topic: Best way to be a first-time home buyer if I intend to move in three years?
Replies: 54
Views: 6575

Re: Best way to be a first-time home buyer if I intend to move in three years?

Justgotscammed, Your second question is the better one. My initial reaction to your first question was the same as most others - just wait rather than owning for 3 years. But my second reaction to your initial question was, that if you buy a starter home, one way to protect yourself is to make sure the starter home has room to grow in the future if you cannot move. If the smaller home has the potential to be added on to, it is less risky. My starter home was on a very small plot of land, so we had to move when we had a third child, as adding on would not have worked. The third option, as you say, is to stretch and buy the larger home. Just do this carefully. If it seems too much to stretch, buy a smaller home that has enough land to do an a...
by Bimmer
Tue Jan 16, 2024 1:38 am
Forum: Personal Investments
Topic: Analysis paralysis on 529
Replies: 40
Views: 3106

Re: Analysis paralysis on 529

@redfan11, I will give you two reasons why you should fund the 529 plan now. 1) California does not give any state tax breaks for 529 plan contributions. Therefore whether you fund the 529 plan now, or when you move to CA, or over the years it does not make any difference. 2) California Scholarshare is, incidentally, the lowest cost 529 plan in the entire nation (0.06% ER) With a projected $600k household income, it is a given that your children will not receive any aid. Given that even today the flagship universities are costing about $40k per year, private schools double that, I would suggest contributing about $150k into each child's 529 plan -- either over the years, or an upfront 5-year selection (each spouse can place $85k for each c...
by Bimmer
Wed Dec 27, 2023 7:27 pm
Forum: Investing - Theory, News & General
Topic: What happened to VINIX Vanguard Institutional Index Fund Institutional Shares today??
Replies: 23
Views: 2607

Re: What happened to VINIX Vanguard Institutional Index Fund Institutional Shares today??

Probably dividend distribution date. Share price falls and you receive dividend in cash that can be reinvested.
by Bimmer
Wed Dec 27, 2023 5:54 pm
Forum: Investing - Theory, News & General
Topic: I Bonds Mega Thread (I Bond Heads Rejoice!)
Replies: 6651
Views: 1203124

Re: I Bonds Mega Thread (I Bond Heads Rejoice!)

Hello, Wondering if any thoughts or responses to the tax question below? Is it worth it to start now at age 52 each year for wife and I if we expect to be in a high tax bracket in retirement? Like many, I am planning to sell 2021/2022 iBonds, which were the first ones I purchased. Regarding the decicision about purchasing more iBonds, it seems like a good idea and was planning to purchase now (end 2023) and in 2024 and hold for at least 5 years, and hopefully continue to buy each year. But then I came across this on the Wiki: "I Bonds redeemed when the investor is in a high tax bracket may provide little or no positive after-tax, after-inflation return, especially if they are held for shorter periods of time. For this reason, if you ex...
by Bimmer
Sat Dec 23, 2023 2:24 pm
Forum: Investing - Theory, News & General
Topic: I Bonds Mega Thread (I Bond Heads Rejoice!)
Replies: 6651
Views: 1203124

Re: I Bonds Mega Thread (I Bond Heads Rejoice!)

Yes, I mean series I saving bonds through treasury direct. This is, after all, the iBonda Meg-thread. Am I on the wrong thread?
by Bimmer
Sat Dec 23, 2023 9:47 am
Forum: Investing - Theory, News & General
Topic: I Bonds Mega Thread (I Bond Heads Rejoice!)
Replies: 6651
Views: 1203124

Re: I Bonds Mega Thread (I Bond Heads Rejoice!)

Hello, Like many, I am trying to decide what to do with iBonds purchased in Dec 2021 and Jan 2022 (my first and only ibond purchases) and whether to buy higher rate ibonds for 2023 and 2024. I purchased them then because they were a "no-brainer" then. I generally don't understand bonds well and am trying to plan my bond investments for the coming years (I am age 52). It seems clear that I will sell the 2021/2022 iBonds on January 2nd. Regarding the decicision about purchasing more iBonds, it seems like a good idea and was planning to purchase and hold for at least 5 years, and hopefully continue to buy each year. But then I came across this on the Wiki: "I Bonds redeemed when the investor is in a high tax bracket may provide...
by Bimmer
Fri Dec 22, 2023 10:38 pm
Forum: Investing - Theory, News & General
Topic: I Bonds Mega Thread (I Bond Heads Rejoice!)
Replies: 6651
Views: 1203124

Re: I Bonds Mega Thread (I Bond Heads Rejoice!)

Hello, Like many, I am trying to decide what to do with iBonds purchased in Dec 2021 and Jan 2022 (my first and only ibond purchases) and whether to buy higher rate ibonds for 2023 and 2024. I purchased them then because they were a "no-brainer" then. I generally don't understand bonds well and am trying to plan my bond investments for the coming years (I am age 52). It seems clear that I will sell the 2021/2022 iBonds on January 2nd. Regarding the decicision about purchasing more iBonds, it seems like a good idea and was planning to purchase and hold for at least 5 years, and hopefully continue to buy each year. But then I came across this on the Wiki: "I Bonds redeemed when the investor is in a high tax bracket may provide ...
by Bimmer
Fri Dec 08, 2023 2:47 pm
Forum: Personal Investments
Topic: Brighthouse Variable Annuity from Wells Fargo Advisors
Replies: 43
Views: 4785

Re: Brighthouse Variable Annuity from Wells Fargo Advisors

Thanks for both of your responses. Petulant, the options for investment within the annuity are so poor that I am not even trying to adjust that. We will withdraw small amounts over the coming years and maintain the death benefit. Other than my concern with the poor responses from the VAS advisor, my biggest question is whether to include the account values in the denominator or the death benefit value in the denominator to calculate their asset allocation. Given there is a chance (though unlikely) that they might need to more money out of the annuities sooner than death, I am thinking of using the more conservative approach and including the account values as bonds in the denominator, thus lowering their total stock investments in their non...
by Bimmer
Thu Dec 07, 2023 1:12 pm
Forum: Personal Investments
Topic: Brighthouse Variable Annuity from Wells Fargo Advisors
Replies: 43
Views: 4785

Re: Brighthouse Variable Annuity from Wells Fargo Advisors

Hi All, Hoping to ask the annuity experts on this thread a related question about these annuities and overall asset allocation in retirement. The question is - how should these annuities be considered in their overall asset allocation? We moved all of my parents' money over to Vanguard from Wells Fargo Advisors, leaving the annuities behind at WFA because Vanguard won't hold them. We met with Vanguard PAS today, and it was a little strange. The advisor knows they have these annuities, and he says he can provide advise on how to manage them. But he recommended an asset allocation that does not take into account the value of these annuities. Wells Fargo always included these annuities in their calculation of overall asset allocation. The annu...
by Bimmer
Sat Dec 02, 2023 1:55 am
Forum: Personal Investments
Topic: Can a K-1 that has a number for "distributions" not actually pay a unit holder a cash distribution?
Replies: 16
Views: 1753

Re: Can a K-1 that has a number for "distributions" not actually pay a unit holder a cash distribution?

Was private equity involved with this K1? I have experienced a similar situation related to a private equity transaction (in which I and others were treated very poorly) in which I was assigned distributions and tax liability on a K1 when I did not actually receive the distributions.

Working on this with my tax accountant to determine actual cost basis of my investments given this “dry income”.
by Bimmer
Wed Oct 11, 2023 9:28 am
Forum: Personal Investments
Topic: Synchrony Online Savings Account New Limits
Replies: 16
Views: 5310

Re: Synchrony Online Savings Account New Limits

I have never had a problem like this with any online savings account, and I have used many in the past.
by Bimmer
Tue Oct 10, 2023 3:19 pm
Forum: Personal Investments
Topic: Synchrony Online Savings Account New Limits
Replies: 16
Views: 5310

Re: Synchrony Online Savings Account New Limits

Just as an update, now that my Synchrony account is under $100,000, I am being told that I am only allowed to withdraw $25,000 per month. This is a completely new limit that is not mentioned in any documentation, nor was I informed by email of such a a change. My only option to remove more thatn $25,000 per month now is to close my account by phone, which I am indeed doing.

I highly recommend staying away from this bank as a high yield online savings account.

-Bimmer
by Bimmer
Mon Sep 18, 2023 10:01 am
Forum: Personal Investments
Topic: Comparing Vanguard Index Funds with Fidelity Index Funds
Replies: 13
Views: 2998

Re: Comparing Vanguard Index Funds with Fidelity Index Funds

I love Diet Coke, hate Coke Zero.
by Bimmer
Tue Sep 05, 2023 9:20 pm
Forum: Personal Consumer Issues
Topic: Choosing a travel rewards credit card
Replies: 19
Views: 3927

Re: Choosing a travel rewards credit card

I just got the Bank of America Travel Rewards card and am happy with it. No foreign transaction fees in most places (we went to Iceland). Nice 25,000 bonus points. It is particularly good if you have B of A preferred rewards. I didn’t shop around for other travel cards, as I already had B of A.
by Bimmer
Thu Aug 31, 2023 1:55 am
Forum: Personal Investments
Topic: How much deficit would you run to fund a third child?
Replies: 22
Views: 2404

Re: How much deficit would you run to fund a third child?

My wife wanted a third kid and I didn’t. I lost. I would recommend getting on those day care wait lists ASAP!!

For what it’s worth, we are not in as high cost a living area as you, but pretty high. One of my biggest worries was the finances, but it worked out OK. I think you do have enough income and savings to have a third kid, even if it ultimately requires some sacrifices.

- Bimmer
by Bimmer
Tue Aug 15, 2023 12:46 pm
Forum: Investing - Theory, News & General
Topic: I Bonds Mega Thread (I Bond Heads Rejoice!)
Replies: 6651
Views: 1203124

Re: I-Bonds - What To Do?

Appreciate the responses.

Can someone explain the reason why they have decided to build a long-term I bond position and keep buying year after year, almost regardless of rates?

Tax deferral seems good, especially since I'm sitting on too much cash. The general concept of inflation protection seems good (I realize how simplistic this sounds). I also have 3 kids going through college, and you I can withdraw cash for college expenses, though my 529's may be overfunded.

Better to keep money in 529's long term that I bonds long term?

-Bimmer
by Bimmer
Tue Aug 15, 2023 11:31 am
Forum: Investing - Theory, News & General
Topic: I Bonds Mega Thread (I Bond Heads Rejoice!)
Replies: 6651
Views: 1203124

I-Bonds - What To Do?

[Thread merged into here --admin LadyGeek] Please help with with a very minor decision - what to do with a small amount of Ibonds. I jumped on the I bond bandwagon in December 2021 and January 2022. Bought total $30,000 between my wife and I - $10K in 2021, $20K in 2022. Haven't bought anything in 2023. Have read through several I bond threads and don't fully understand how to make a decision going forward. My current large cash holding is invested in Treasury Money Market Funds earning close to 6%. I would accept lower immediate returns if it may make sense to continue building a long-term I bond position. What would you recommend for the long term? Should I jump out now of I bonds and not bother, or should I buy more with the goal of &qu...
by Bimmer
Sat Aug 12, 2023 10:33 pm
Forum: Personal Investments
Topic: Federal vs Treasury Money Market - Repurchase Agreements
Replies: 2
Views: 644

Federal vs Treasury Money Market - Repurchase Agreements

Hello all,

Current data from Vanguard web site:

- VMFXX (Vang Federal MM) - Yield is 5.26%
-- 47.6% repurchase agreements, 27.1% US Govt Obligations, and 25.20 US Treasury Bills

- VUSXX (Vang Treasury MM) - Yield is 5.16%
-- 17.9% repurchase agreements, 2.2% US Govt Obligations, and 79.9% US Treasury Bills

Are both "US Govt Obligations" and "US Treasury Bills" exempt from state and local tax?

Which MM fund would be better right now in a state with 9% state/local tax?

Thanks.

-Bimmer
by Bimmer
Tue Aug 08, 2023 7:01 pm
Forum: Personal Investments
Topic: Synchrony Online Savings Account New Limits
Replies: 16
Views: 5310

Re: Synchrony Online Savings Account New Limits

Agree, Nisiprius, and it's certainly not "for my security". It's to protect them about too much withdrawals at once.
by Bimmer
Tue Aug 08, 2023 11:10 am
Forum: Personal Investments
Topic: Synchrony Online Savings Account New Limits
Replies: 16
Views: 5310

Synchrony Online Savings Account New Limits

Just a heads up to anyone using this online savings account, there are now significant restrictions on moving money out of the account that were not present before. I have just over $200,000 in my Synchrony account. I initiated a transfer of $100,000 on Monday, which is the maximum you can transfer daily. I initiated a second transfer of $100,000 today that was automatically cancelled. I called them and they will not allow me to transfer any more money out until the initial transfer is complete, which they say will be 5 days after Monday. They refer me to the account agreement on their web site, which is different from the account agreement I have from when I opened the account, which states "For your security, we may limit the amount ...
by Bimmer
Mon Jun 19, 2023 1:46 am
Forum: Personal Consumer Issues
Topic: Cheated out of advance seat assignments?
Replies: 124
Views: 13870

Re: Cheated out of advance seat assignments?

The games that the airlines play are disgusting. So many aspects of our world are set up as scams to direct our business and steal our money. I tell my kids and my wife that everything in our world right now is a scam. Private equity and the stock market are running the show. It’s so sad that you can’t travel with little children and expect to be seated with them. I wouldn’t pay the extra money. Just plan to be seated together at the gate like they said. If not, let the flight attendants attend or your children while you watch a movie.
by Bimmer
Wed May 31, 2023 2:04 am
Forum: Personal Investments
Topic: Which Merrill Edge money market fund to use?
Replies: 26
Views: 10596

Re: Which Merrill Edge money market fund to use?

Thanks for all the responses.
by Bimmer
Mon May 29, 2023 2:33 pm
Forum: Personal Investments
Topic: Which Merrill Edge money market fund to use?
Replies: 26
Views: 10596

Re: Which Merrill Edge money market fund to use?

Also, I have been investigating money markets, especially treasury money markets. It has been discussed to death in other threads about government repurchase obligations not being state tax deductible. Here is a little data on a few treasury money market funds: -- Vanguard Treasury MM - VUSXX - Current 7-day yield 5.03% - 43% repurchase obligations -- Fidelity Treasury MM - FXFXX - Current 7-day yield 4.73% - 93.51% repurchase obligations -- Blackrock Liq Treasury Trust - TTTXX - Current 7-day yield 4.95% - 0.00% repurchase obligations It's fascinating how different these three funds are. It suggests the Blackrock Fund at Merrill is the best available treasury money market fund (at least that I can find between these three institutions). -B...
by Bimmer
Mon May 29, 2023 1:37 pm
Forum: Personal Investments
Topic: Which Merrill Edge money market fund to use?
Replies: 26
Views: 10596

Re: Which Merrill Edge money market fund to use?

Bumping to see if there is an answer to the question above - are there any trading fees on any of the money market funds listed on the Merrill Cash Management Solutions page that is updated daily:

https://olui2.fs.ml.com/Publish/Content ... eSheet.pdf
by Bimmer
Mon May 01, 2023 9:46 pm
Forum: Personal Finance (Not Investing)
Topic: Zero Percent APR Credit Card Dumb Question
Replies: 9
Views: 830

Re: Zero Percent APR Credit Card Dumb Question

Thanks for quick reply all.
by Bimmer
Mon May 01, 2023 8:51 pm
Forum: Personal Finance (Not Investing)
Topic: Zero Percent APR Credit Card Dumb Question
Replies: 9
Views: 830

Zero Percent APR Credit Card Dumb Question

Just got my first new credit card in many years - a Bank of America Travel Card - for an upcoming overseas trip. This may be the dumbest question ever, but the card has a 0% APR through October 2024. Other than the fact that I have paid my credit card bills on time without any interest for 20 years, if money market rates stay around what they are now, is there any reason not to make this my main credit card for use and pay the minimum on this card through October 2024? It just seems like it would feel so wrong to carry a balance on a credit card.

-Bimmer
by Bimmer
Fri Apr 28, 2023 11:32 am
Forum: Personal Investments
Topic: Brighthouse Variable Annuity from Wells Fargo Advisors
Replies: 43
Views: 4785

Re: Brighthouse Variable Annuity from Wells Fargo Advisors

Hello All, I finally got back around to sending more questions to Brighthouse through the financial advisor, so I am copying and pasting the exact questions I asked and answers (bolded) below the dividing line below. I'm curious how the experts here interpret the responses below - I'll reserve my interpretation for now. -Bimmer ___________________________________________________________________________________________________________________________ Please see below. $4$ stands for dollar for dollar. Question #1 - If we take a one-time withdrawal this year of half of the account value (52K), what happens to the EDB? Does it continue to rise by 5.5% this year, or does it drop by a certain amount? – If you take 52k, which is well over the $4$...
by Bimmer
Wed Mar 29, 2023 10:05 pm
Forum: Personal Investments
Topic: Treasury MM vs Treasury Bills
Replies: 8
Views: 2443

Treasury MM vs Treasury Bills

Vanguard Treasury Money Market (VUSXX) has a 7-day SEC yield of 4.69%.

2 Month US Treasury Bill (Auction Open 3/28/23) has an indicative yield of 4.24%. 1 Month US Treasury Bills yield 4.036%.

What does this mean?

What is the advantage of buying Treasury Bills over VUSXX?
by Bimmer
Fri Mar 24, 2023 1:42 pm
Forum: Personal Investments
Topic: Brighthouse Variable Annuity from Wells Fargo Advisors
Replies: 43
Views: 4785

Re: Brighthouse Variable Annuity from Wells Fargo Advisors

Thanks for everyone's responses. Through their investment advisor, I asked again what the effect of turning on the income would be. I didn't ask at the specific question level as recommended by and received the following response: "We received the following back from Brighthouse: If they are taking their annual free withdrawal amount in the form of the SWP payment the death benefit will not fall off until the account value reduces to zero (which triggers annuitization). If they define “taking income through the rider” as annuitizing then at that point the death benefit will fall off. Most people will take the annual free withdrawal amount as long as possible in order to keep the death benefit active and then annuitize once the account ...
by Bimmer
Mon Mar 20, 2023 10:14 pm
Forum: Personal Investments
Topic: Brighthouse Variable Annuity from Wells Fargo Advisors
Replies: 43
Views: 4785

Re: Brighthouse Variable Annuity from Wells Fargo Advisors

Thank you all, and Stinky, for that reply. The way you parsed out the questions about specific scenarios let's me know that I am thinking about this issue correctly now. I will ask the advisors questions that get the answers to these scenarios, but ultimately it seems like my best next step is to contact Brighthouse directly and get answers directly from them, in writing if possible. I assume they will be willing to talk with me and explain the numbers in all scenarios.

Regarding the other statements above, I am indeed starting the process of getting away from these "advisors".
by Bimmer
Mon Mar 20, 2023 6:58 pm
Forum: Personal Investments
Topic: Brighthouse Variable Annuity from Wells Fargo Advisors
Replies: 43
Views: 4785

Re: Brighthouse Variable Annuity from Wells Fargo Advisors

Stinky, Petulant, and Chardo, I am reaching back out with some updates, and of course some more questions. I obtained full copies of all three annuities, which are all the same language, just different values. And I met with my parents' advisors today, after they forwarded me the contracts some written answers to questions from Brighthouse. All three annuities are in IRA's, and Brighthouse has confirmed that the death benefit and/or income payouts would remain in an IRA. The annual rates of increase of 5.5% will continue through age 90 on the Enhanced Death Benefit (EDB Max II) and Guaranteed Minimum Income Benefit (GMIB MAX II). MY BIGGEST QUESTION IS TO UNDERSTAND WHAT IS THE DOWNSIDE OF TURNING ON THE INCOME STREAM ON THESE ANNUITIES - S...
by Bimmer
Sun Feb 19, 2023 11:39 am
Forum: Personal Investments
Topic: Brighthouse Variable Annuity from Wells Fargo Advisors
Replies: 43
Views: 4785

Re: Brighthouse Variable Annuity from Wells Fargo Advisors

Sorry for my delayed response, crazy busy at work past 3 days.

I am grateful for the responses and discussion from all three of you - Stinky, Petulant, and Chardo. I also obtained an analysis from an outside consultant. I will try to gather some of the information and details you suggest understanding and reach back out on this thread.

-Bimmer
by Bimmer
Thu Feb 16, 2023 6:45 pm
Forum: Personal Investments
Topic: Brighthouse Variable Annuity from Wells Fargo Advisors
Replies: 43
Views: 4785

Re: Brighthouse Variable Annuity from Wells Fargo Advisors

Thanks all for the quick responses. @Petulant. — Thank you Petulant. I will review that link now. @Rex66. — Good question. I’m not sure. I was just told they had “done some withdrawals” over the years. I will have to investigate this question further. @Chardo. — Both parents turn 77 this year. I believe the death benefit is so high because these were bought in 2011. I think yearly they make a minimum of 5.5% or get the market gains, and the market often did better than 5.5% since 2011. But I don’t understand why the cash surrender value is so low. @Stinky. — The policy above is for my father, who is 76. My father is in relatively good average physical health for his age, but has significant Alzheimer’s Dementia. He is starting to require a ...
by Bimmer
Thu Feb 16, 2023 12:50 pm
Forum: Personal Investments
Topic: Brighthouse Variable Annuity from Wells Fargo Advisors
Replies: 43
Views: 4785

Brighthouse Variable Annuity from Wells Fargo Advisors

Hello All, Big picture, I'm another Boglehead DIY child strongly considering moving my parents from Wells Fargo Advisors to Vanguard PAS. They're paying 1% AUM fee, and they were put into several Brighthouse Variable Annuities (Series VA-4) in 2011 that I never would have had them invest in but that I don't really understand. All the annuities are WITHININ IRA's, past the surrender fee period, and appear to have the same structure with different starting values. Small picture, I'm wondering what the recommendations here would be to do with these annuities, so I will use one as an example. The largest annuity was a total purchase of $175,000. Total withdrawals since issue $29,800. Cash Surrender Value $154,244.71. -- Yearly fees and charges ...
by Bimmer
Tue Jan 24, 2023 12:04 pm
Forum: Personal Investments
Topic: Ally Bank 3.3%, Vang Treasury MM 4.91%
Replies: 5
Views: 1559

Re: Ally Bank 3.3%, Vang Treasury MM 4.91%

The VUSXX 7 day SEC yield is currently 4.24%. I should be in 35% federal tax bracket, 9% state and local tax rate. VUSXX is exempt from state and local taxes.

TEY = 4.24% * (1-35%)/(1-44%) = 4.92 %
by Bimmer
Tue Jan 24, 2023 11:40 am
Forum: Personal Investments
Topic: Ally Bank 3.3%, Vang Treasury MM 4.91%
Replies: 5
Views: 1559

Ally Bank 3.3%, Vang Treasury MM 4.91%

Hello All,

In current interest rate environment, I'm moving all my cash out of online savings accounts into Vanguard Treasury Money Market VUSXX. Even at lower tax brackets, the TEY of VUSXX is significantly higher than any online savings accounts.

Is VUSXX expected to remain at this rate if interest rates don't come down?

-Bimmer
by Bimmer
Wed Dec 07, 2022 1:11 pm
Forum: Personal Consumer Issues
Topic: 2023 Toyota Sienna XLE hybrid
Replies: 22
Views: 3351

Re: 2023 Toyota Sienna XLE hybrid

Slapshot wrote: Wed Dec 07, 2022 1:07 pm We've been driving Siennas for years. Currently on our 3rd, a 2018. Being unable to remove the middle seats would be a deal breaker for us. We remove them right away and store them away. Only bring them out if we're having visitors and need to transport them. Being retired, our Sienna is a combo RV, pickup truck, ski lodge, etc. And the dog loves the room on trips. Why they did away with removable middle seats is a mystery to me.
There are Youtube videos about how to remove the middle seats in the new Sienna. Especially if you keep them out for extended periods, it's not that big a deal. For someone that wants to take them out for occasionally transporting larger objects, it is more of a hassle.
by Bimmer
Sun Dec 04, 2022 8:17 pm
Forum: Personal Consumer Issues
Topic: Car Contents Stuck in Ohio - Suggestions?
Replies: 17
Views: 2530

Re: Car Contents Stuck in Ohio - Suggestions?

Thanks all for the replies and suggestions. He will be working with the insurance company on this starting tomorrow, and we certainly may use one of the suggestions or options above. Thanks again.
by Bimmer
Sun Dec 04, 2022 11:32 am
Forum: Personal Finance (Not Investing)
Topic: Term insurance: 20yr vs 30yr?
Replies: 28
Views: 2443

Re: Term insurance: 20yr vs 30yr?

When I was 37 and purchasing term life insurance for my wife and I, I decided to get 30-year term for myself and 20-year term for my wife. This seemed like the best balance with my salary being higher and her life expectancy being higher. I also got a higher policy amount for myself than her given the salary difference.

I’m 51 years old and quite happy with this balanced plan. Yes, I have the potential to cancel the plans in a few years if we don’t feel we need the insurance, but I likely won’t given how low the premiums now are compared to salary increases across the years.
by Bimmer
Fri Dec 02, 2022 10:23 pm
Forum: Personal Consumer Issues
Topic: Car Contents Stuck in Ohio - Suggestions?
Replies: 17
Views: 2530

Car Contents Stuck in Ohio - Suggestions?

Hey All, I figured I would crowd source a little problem to get your suggestions or creative ideas. My brother was in a car accident outside Cleveland Ohio several weeks ago - btw, I think his new Subaru saved his life! He got back to his home in Boston and cannot drive for 6 months. His car was taken by insurance company to be appraised in a town called Lorain Ohio. The insurance company just told him the car is totaled. The issue is that he has a locked hard Thule roof rack still locked to the roof of the car with some significant personal items and raw materials, as well as a few smaller items in the car. The roof rack is well packed, but there are some semi-fragile items in it. And he doesn't know how he can get these items and roof rac...
by Bimmer
Thu Nov 24, 2022 1:40 am
Forum: Investing - Theory, News & General
Topic: Tax Equivalent Money Market Yield
Replies: 5
Views: 2099

Re: Tax Equivalent Money Market Yield

See this thread in which I derive the formulas for Taxable equivalent yield (TEY) . For Treasuries or any other securities taxed by the fed but exempt from state taxes, this is the formula to use: TEY = y * (1-f)/(1-f-s) where f = federal marginal tax rate (including NIIT and anything else that impacts marginal rate), and s = state marginal income tax rate. The numerator give you the after-tax yield (ATY), and the denominator converts that to a fully taxable yield (TEY). I see that this is what you are calculating, but be sure to include NIIT, etc. for your Fed marginal rate. Your muni TEY formula is correct as well, with the above caveat for the 35% fed marginal rate. Latest published SEC yield for VUSXX is 3.52%, which is 4.09% TEY at yo...
by Bimmer
Mon Nov 21, 2022 8:28 pm
Forum: Investing - Theory, News & General
Topic: Tax Equivalent Money Market Yield
Replies: 5
Views: 2099

Re: Tax Equivalent Money Market Yield

Does this online calculator work for VUSXX Treasury MM fund? I'm not sure how to compare using this calculator, which I had seen.
by Bimmer
Mon Nov 21, 2022 8:12 pm
Forum: Investing - Theory, News & General
Topic: Tax Equivalent Money Market Yield
Replies: 5
Views: 2099

Tax Equivalent Money Market Yield

Not sure why I am struggling with these Tax-Equivalent Yield Calculations, but I am. Hoping someone will confirm my calculations or correct them. Trying to compare Vanguard MM funds to online savings accounts which are running 3.0-3.5% for my cash. I am in 35% federal tax bracket (Married Filing Jointly). State and Local Taxes are 9% (Maryland). For Vanguard Treasury Money Market (VUSXX), 3.49% 7-day SEC yield, I calculate the TEY of 4.05% using the following calculation: 3.49 * (1-35%)/(1-44%) = 4.05% For Vanguard Municipal Money Market (VMSXX), 1.86% 7-day SEC yield, I calculate the TEY yield of 3.02% using the following calculation: 1.86 * (1-9%)/(1-44%) = 3.02% Are these correct? Can anyone give me the equivalent calculation for Vanguar...
by Bimmer
Tue Nov 15, 2022 9:58 pm
Forum: Personal Investments
Topic: Current Vanguard Money Market Options
Replies: 16
Views: 4431

Re: Current Vanguard Money Market Options

bump - any replies appreciated
by Bimmer
Tue Nov 15, 2022 12:31 pm
Forum: Personal Investments
Topic: Current Vanguard Money Market Options
Replies: 16
Views: 4431

Re: Current Vanguard Money Market Options

VUSXX (Treasury) is up to 3.4% yield today.
VMFXX (Federal) is up to 3.58% today.
VMSXX (Muni) is down to 1.99% today.

Could someone please refresh me with the Tax Equivalent Yield calculations for each of these three funds to compare to VMMXX (Cash Reserves) which is at 3.60% right now? I live in Maryland if that makes a difference.

Thanks.
by Bimmer
Tue Oct 04, 2022 11:55 am
Forum: Investing - Theory, News & General
Topic: Vanguard Municipal Money Market VMSXX [0.03%]
Replies: 651
Views: 123280

Re: Vanguard Municipal Money Market VMSXX [0.03%]

Thanks Kevin. I've always wondered about the TEY yield for Federal. 2.77% is still good, but Muni MM seems significantly better, at least for the moment.
by Bimmer
Mon Oct 03, 2022 8:45 pm
Forum: Investing - Theory, News & General
Topic: Vanguard Municipal Money Market VMSXX [0.03%]
Replies: 651
Views: 123280

Re: Vanguard Municipal Money Market VMSXX [0.03%]

So, I started this thread in 2018, and I learned that there are lots of factors that go into these money market rates, and there is significant cyclic variation. When MM rates went down, I moved money out to high yield online savings accounts. Now I'm considering swinging the money back. My question today is what is expected to happen to these money market rates in this rising rate environment? Should we expect Vanguard MM rates to be above high yield savings accounts for the near future? Some current rate information for comparison: -- Vanguard Federal MM - 7 day SEC yield 2.77% (3.22% for my tax bracket) -- Vanguard Municipal MM - 7 day SEC yield 2.18% (3.54% for my tax bracket) -- Dollar Savings Direct - 3% -- Synchrony Online Savings - ...