Search found 1285 matches

by onourway
Fri Mar 17, 2017 2:30 pm
Forum: Personal Finance (Not Investing)
Topic: How should I divide my finances and any suggestions?
Replies: 31
Views: 2914

Re: How should I divide my finances and any suggestions?

To me, getting a 15 year mortgage after paying perhaps $200k down, leaving me with $850k in investments for long-term and retirement sounds a lot more palatable than using nearly everything to pay cash for a house and then being way behind on my retirement savings. Mortgage interest rates are still ...
by onourway
Fri Mar 17, 2017 1:57 pm
Forum: Investing - Help with Personal Investments
Topic: Funds for taxable account
Replies: 11
Views: 1594

Re: Funds for taxable account

A broad market index fund. Preferably one that is different than you hold in your other accounts so if you wish to take advantage of tax-loss harvesting you don't trigger an inadvertent wash sale.
by onourway
Fri Mar 17, 2017 10:57 am
Forum: Investing - Help with Personal Investments
Topic: VWELX [Vanguard Wellington]
Replies: 50
Views: 9627

Re: VWELX [Vanguard Wellington]

Wellington is not closed if you have a Vanguard brokerage account and are buying through this portal. (I have moved both our Roth IRA's to Wellington within the last month). It IS closed to outside brokerages - I know because I also tried to buy into it through my 401k brokerage option - again, with...
by onourway
Fri Mar 17, 2017 10:50 am
Forum: Investing - Theory, News & General
Topic: Anyone else taking less risk
Replies: 115
Views: 13269

Re: Anyone else taking less risk

I have gone from nearly 100/0 as of last November to about 85/15 and am now moving to 80/20 with things arranged to slowly move us to 70/30 over the next couple of years. This is largely a result of realizing how well we have done over the past decade, and that optional retirement may come within 10...
by onourway
Wed Mar 15, 2017 3:01 pm
Forum: Investing - Help with Personal Investments
Topic: 3-fund portfolio with less downside risk
Replies: 5
Views: 1177

Re: 3-fund portfolio with less downside risk

Yes, due to the limited timespans available on some of these funds, I can only compare my 'new' portfolio for the past 10 years. But the general point stands - run the back tests with the standard 80/20 - 60/40 3-fund portfolios for the 20+ years that there is data and the trends persist. Which make...
by onourway
Wed Mar 15, 2017 1:48 pm
Forum: Investing - Help with Personal Investments
Topic: 3-fund portfolio with less downside risk
Replies: 5
Views: 1177

3-fund portfolio with less downside risk

I am a recent convert to the Boglehead model of investing. I understand the reasons behind the methods of the 3-fund or any other lazy portfolio. However I have recently come to the conclusion that I am not totally comfortable with the down-side risk demonstrated by a historical analysis of various ...
by onourway
Tue Mar 14, 2017 8:01 pm
Forum: Investing - Help with Personal Investments
Topic: Advice sought on proposed AA formed after newly gained knowledge
Replies: 4
Views: 500

Re: Advice sought on proposed AA formed after newly gained knowledge

This recent thread discussed TIAA Traditional and had a couple of very useful links in it. https://www.bogleheads.org/forum/viewtopic.php?t=211688 The big thing is to figure out what version you'd be buying in to, what your guaranteed/current rates are, and limits on withdrawals. All of this is laid...
by onourway
Tue Mar 14, 2017 7:27 am
Forum: Investing - Help with Personal Investments
Topic: Advice sought on proposed AA formed after newly gained knowledge
Replies: 4
Views: 500

Re: Advice sought on proposed AA formed after newly gained knowledge

I agree that I'd consider TIAA traditional as a significant portion of your bond holdings. If it were me I'd also be trying to minimize the number of funds held. It might look something like TIAA traditional in both 403b's, a single balanced fund in both Roth IRA's (balanced index, Wellington, etc),...
by onourway
Sat Mar 11, 2017 4:16 pm
Forum: Investing - Theory, News & General
Topic: Which Vanguard Tax-Exempt fund?
Replies: 22
Views: 3480

Re: Which Vanguard Tax-Exempt fund?

If you are asking if there is a simple mechanical way to weigh the risk/reward difference and come up with the "right" or "best" answer, then there isn't one, in my opinion. You just have to decide for yourself. In general, I prefer intermediate maturity/duration and national diversification (also ...
by onourway
Sat Mar 11, 2017 4:05 pm
Forum: Investing - Theory, News & General
Topic: Which Vanguard Tax-Exempt fund?
Replies: 22
Views: 3480

Re: Which Vanguard Tax-Exempt fund?

You checked the wrong number. Vanguard's long-term single-state funds have an average maturity of about 17 years, but a duration of about 7 years, the same as the national long-term funds. Sorry - yes - the maturity of the state fund is about 17 years vs. 8.8 years for Intermediate Term Tax Exempt....
by onourway
Sat Mar 11, 2017 3:12 pm
Forum: Investing - Theory, News & General
Topic: Which Vanguard Tax-Exempt fund?
Replies: 22
Views: 3480

Re: Which Vanguard Tax-Exempt fund?

How about when your state's tax-exempt fund has a duration of ~17 years? I chose Intermediate Term Exempt for this reason. What would be a good reason to choose the state fund instead?
by onourway
Fri Mar 10, 2017 5:02 pm
Forum: Investing - Help with Personal Investments
Topic: Help my portfolio is messy
Replies: 30
Views: 3686

Re: Help my portfolio is messy

Please add fund names in addition to the ticker symbols! Thanks!
by onourway
Fri Mar 10, 2017 3:12 pm
Forum: Investing - Help with Personal Investments
Topic: 3 Fund Portfolio Question
Replies: 5
Views: 719

Re: 3 Fund Portfolio Question

I would not be inclined to exchange wellington for a 3-fund if it means paying substantial capital gains. If you'd like to minimize the tax drag you could divert dividends into your money market account and re-invest those proceeds in the portfolio that you begin alongside the Wellington fund. What'...
by onourway
Thu Mar 09, 2017 3:01 pm
Forum: Investing - Help with Personal Investments
Topic: Where do I start?
Replies: 11
Views: 1168

Re: Where do I start?

You mention credit card debt in the first post? This should be paid off before diverting funds to investments.

What are the balances and interest rates on the student loans?
by onourway
Thu Mar 09, 2017 2:53 pm
Forum: Investing - Help with Personal Investments
Topic: AA across 5 accounts - On the right path?
Replies: 8
Views: 880

Re: AA across 5 accounts - On the right path?

I agree that I would try to use the minimum number of funds possible. I would strongly consider the Vanguard Target Retirement fund in His 401k. Then try to find the minimum number of funds between her 401k and the IRA's to meet your overall desired AA. I would consider the EQ Equity 500 Index fund ...
by onourway
Thu Mar 09, 2017 8:07 am
Forum: Investing - Theory, News & General
Topic: Sitting on cash....Waiting for a crash
Replies: 175
Views: 32648

Re: Sitting on cash....Waiting for a crash

Staying the course is important, as by doing so it doesn't matter if sometimes you buy at high prices By buying month in and month out year after year you are also buying at low prices and average prices and overall your return will come out above average. Your method *might* net you a higher return...
by onourway
Wed Mar 08, 2017 8:57 am
Forum: Investing - Help with Personal Investments
Topic: Individual Funds Vs. Fund of Funds
Replies: 26
Views: 1710

Re: Individual Funds Vs. Fund of Funds

This is one example of a blended fund outperforming the individual funds by far more than their cost benefits, even when allocated at the same weights. Plug in your own specifics to see what things look like. I don't know exactly why this happens, but I suspect it is due to the specifics of how and ...
by onourway
Wed Mar 08, 2017 8:38 am
Forum: Investing - Help with Personal Investments
Topic: Individual Funds Vs. Fund of Funds
Replies: 26
Views: 1710

Re: Individual Funds Vs. Fund of Funds

In my limited research of how the various Vanguard blended funds do vs. their constituent parts, I often find that historically the blended funds have outperformed even accounting for their additional cost. I would look carefully at this before making this switch to save $7k. The presence of the Int...
by onourway
Wed Mar 08, 2017 6:14 am
Forum: Investing - Help with Personal Investments
Topic: Is the Vanguard Balanced Index Fund all you need?
Replies: 58
Views: 15589

Re: Is the Vangaurd Balanced Index Fund all you need?

VBIAX has a .08 expense ratio, whereas VTSAX has .05. A 60% higher expense ratio seems like it would be significant, no? That's a difference of $30/year on a $100,000 balance. It's something, but realistically too small to accurately account for in estimating the returns generated by two potential ...
by onourway
Tue Mar 07, 2017 5:05 pm
Forum: Investing - Help with Personal Investments
Topic: Is the Vanguard Balanced Index Fund all you need?
Replies: 58
Views: 15589

Re: Is the Vangaurd Balanced Index Fund all you need?

The only potential issue I see with the Balanced Index fund is lack of international exposure.
by onourway
Tue Mar 07, 2017 2:20 pm
Forum: Personal Consumer Issues
Topic: Surface 3 - plugged in, not charging
Replies: 8
Views: 2349

Re: Surface 3 - plugged in, not charging

This has been a common problem with multiple versions of Surface devices. Probably out of luck at this point unless Chase steps up for you. American Express would not cover mine...
by onourway
Mon Mar 06, 2017 6:38 pm
Forum: Personal Consumer Issues
Topic: Car engines. Turbo vs no turbo
Replies: 68
Views: 10621

Re: Car engines. Turbo vs no turbo

In my experience Subaru's engines are minimally reliable by modern standards turbo or no. Otherwise, turbo's can be plenty reliable - I have on car with well over 200k on the stock turbo, or they can be a mess, depending on implementation. Overall I'd say they probably lower the car's reliability a ...
by onourway
Sun Mar 05, 2017 4:52 pm
Forum: Personal Consumer Issues
Topic: Which eReader to purchase?
Replies: 38
Views: 3188

Re: Which eReader to purchase?

I'll add to the Kindle Paperwhite suggestions. I was an early adopter of the iPad and used it for years as my e-reader while traveling, but recently started using a Kindle we'd gotten as a gift that had sat in a drawer for years. It's much easier to hold than the iPad, and as someone who already spe...
by onourway
Sun Mar 05, 2017 10:04 am
Forum: Investing - Help with Personal Investments
Topic: Wellesley vs ALLY savings acct: from TAX perspective . . .
Replies: 19
Views: 3024

Re: Wellesley vs ALLY savings acct: from TAX perspective . . .

Avoiding taxes is not the objective in and of itself. When there are ways to structure your portfolio to both maximize returns while also minimizing taxes the advice is to generally avoid paying more tax than is necessary. Generally, holding Wellesley in taxable results in a tax bill that is entirel...
by onourway
Sat Mar 04, 2017 6:41 am
Forum: Personal Consumer Issues
Topic: Free ynab? [You Need A Budget]
Replies: 20
Views: 5853

Re: Free ynab? [You Need A Budget]

I certainly understand why people would want to look for a free alternative, but there is no doubt in my mind that if you use YNAB as it is intended it will be worth far more than its $50/year cost to you. YNAB doesn't let a single dollar of your budget go unaccounted for.
by onourway
Wed Mar 01, 2017 12:55 pm
Forum: Investing - Help with Personal Investments
Topic: Building my taxable portfolio from scratch - W&W and 4 funds
Replies: 17
Views: 1703

Re: Building my taxable portfolio from scratch - W&W and 4 funds

The Boglehead philosophy is that your taxable account is a part of your overall portfolio and should be treated as such. I understand that this isn't always going to be a 100% rigid rule, but the reasons behind this advice are quite sound. A 70/30 portfolio of 500 Index and Intermediate Term Tax-Exe...
by onourway
Wed Mar 01, 2017 8:35 am
Forum: Investing - Help with Personal Investments
Topic: Building my taxable portfolio from scratch - W&W and 4 funds
Replies: 17
Views: 1703

Re: Building my taxable portfolio from scratch - W&W and 4 funds

Do you have any retirement/tax sheltered accounts or is all of your savings in the taxable account? The reason for avoiding W&W in a taxable account is because of the non-qualified dividends those funds produce which will be taxed at your full marginal rate. Both Vanguard and Morningstar's fund page...
by onourway
Wed Mar 01, 2017 8:18 am
Forum: Personal Finance (Not Investing)
Topic: New YouTube TV Service $35 per month
Replies: 43
Views: 6049

Re: New YouTube TV Service $35 per month

I looked at the Sling TV offering recently. $20/month for 30 channels. I am interested in six of them. I am not willing to pay $20 for those six channels, though, so they aren't getting anything from me. There is still plenty for me to watch on Netflix and Amazon Prime (I very selectively "buy" sho...
by onourway
Tue Feb 28, 2017 10:21 am
Forum: Personal Finance (Not Investing)
Topic: Ugh, why is buying a new car so painful?
Replies: 75
Views: 11169

Re: Ugh, why is buying a new car so painful?

Buying a car is only painful if you let it be. Decide exactly what car you want, including color and options, and find 2-3 dealers convenient to you who have that exact car on the lot. Call or email them asking for their quotes. Tell them that you have already done your research and you don't need t...
by onourway
Tue Feb 28, 2017 8:40 am
Forum: Personal Consumer Issues
Topic: Don't pay full price for cable TV
Replies: 76
Views: 6936

Re: Don't pay full price for cable TV

I have had a calendar reminder for years with Time Warner to do this because the only thing they offer are 12 month 'special rates' that jump up significantly after they expire. There is always another special rate available when you call, but you have to call. I have never found threatening to leav...
by onourway
Tue Feb 28, 2017 8:38 am
Forum: Personal Consumer Issues
Topic: Grass trimmer
Replies: 67
Views: 5782

Re: Grass trimmer

For my smallish city lot I went electric and would never go back. My trimmer and my blower share the same battery and there is no going back to gas once you've had the convenience of electric. Most of my electric stuff like this is Ryobi and it has all worked great for many years. That said, for a 1...
by onourway
Mon Feb 27, 2017 10:03 pm
Forum: Investing - Theory, News & General
Topic: Extreme Valuations, and why you should reconsider
Replies: 307
Views: 27523

Re: Extreme Valuations, and why you should reconsider

This is the probably the biggest reason for the disconnect. I don't care about valuations because I already "plan" for fairly conservative returns (lower than historical). And I've been pleasantly surprised. For the past 25 years, valuations have been high, and "expected" returns have been low, yet...
by onourway
Fri Feb 24, 2017 4:54 pm
Forum: Investing - Theory, News & General
Topic: Extreme Valuations, and why you should reconsider
Replies: 307
Views: 27523

Re: Extreme Valuations, and why you should reconsider

Good breakdown. Me, I ignore valuations. They make no difference over the long term. Like you said, I think the 40% correlation is not enough to matter, and the wide variance makes planning around "expected" returns pointless. I think Asset Allocation is purely a risk management decision. There is ...
by onourway
Thu Feb 23, 2017 6:50 am
Forum: Investing - Theory, News & General
Topic: Market Run Ups - Now vs. Then
Replies: 88
Views: 8746

Re: Market Run Ups - Now vs. Then

While I effectively tuned out most of the noise during the last two crashes, I certainly remember the mania leading towards their peaks. I was about to graduate from college in 1999 in a tech region in a computer science program. Everyone assumed (quite correctly it turned out-at least for the short...
by onourway
Wed Feb 22, 2017 2:20 pm
Forum: Investing - Theory, News & General
Topic: Extreme Valuations, and why you should reconsider
Replies: 307
Views: 27523

Re: Extreme Valuations, and why you should reconsider

FWIW, in January 2000 the CAPE 10 was forecasting a real return to US stocks of 2.3%, it has been 3%. I'd say that was a very good prediction. Larry How is the individual investor to take action on this information though? If one were looking to invest all of their life savings in one lump sum, I m...
by onourway
Wed Feb 22, 2017 10:09 am
Forum: Investing - Help with Personal Investments
Topic: Investing Cash for my Toddler
Replies: 4
Views: 580

Re: Investing Cash for my Toddler

We have UTMA accounts invested at Vanguard for gifts for our children that are theirs and not specifically earmarked for college. This feels better to me than investing their money in our accounts.
by onourway
Tue Feb 21, 2017 8:44 am
Forum: Investing - Help with Personal Investments
Topic: Trying to understand TIAA Traditional
Replies: 25
Views: 3733

Re: Trying to understand TIAA Traditional

Thank you @student and @mrc.

Very helpful.
by onourway
Tue Feb 21, 2017 8:43 am
Forum: Investing - Help with Personal Investments
Topic: 20% bonds: why bother at 48?
Replies: 131
Views: 9631

Re: 20% bonds: why bother at 48?

As I'm in the midst of reading a number of books dealing with the 2008 collapse, the similarities between some of the comments here and the position staked out by many banks and financial firms in the years leading up to 2008 are striking. Firms like Lehman, Bear, Countrywide, Wachovia, et al stretc...
by onourway
Tue Feb 21, 2017 8:05 am
Forum: Investing - Help with Personal Investments
Topic: Trying to understand TIAA Traditional
Replies: 25
Views: 3733

Re: Trying to understand TIAA Traditional

So what determines the amount that is paid out in the end? How are all the various rates aggregated to determine the final payout amount?
by onourway
Mon Feb 20, 2017 11:47 am
Forum: Investing - Help with Personal Investments
Topic: 20% bonds: why bother at 48?
Replies: 131
Views: 9631

Re: 20% bonds: why bother at 48?

It doesn't seem to me like one needs an end of the world scenario to see why 80/20 or 70/30 makes sense. Bull markets don't last forever, and the amounts that 100/0 outperforms these other AA's is generally rather small even in the best-case scenario where you don't need to make a withdrawal during ...
by onourway
Sun Feb 19, 2017 4:30 pm
Forum: Investing - Theory, News & General
Topic: Why is American funds returns too good to be true?
Replies: 45
Views: 6471

Re: Why is American funds returns too good to be true?

I guess I'm not familiar with your situation. Most 401K plans I've heard of have share classes R1-R6 and are no-load. The prospectus to look at is the one offered through your 401K Plan Administrator. Perhaps you are referring to your IRA or a solo 401K plan you set up? I guess I'm pushing this a b...
by onourway
Sun Feb 19, 2017 1:51 pm
Forum: Investing - Theory, News & General
Topic: Why is American funds returns too good to be true?
Replies: 45
Views: 6471

Re: Why is American funds returns too good to be true?

onourway- Your situation is the first time I have ever heard of loads being charged by American Funds in a 401K plan. What share class do you hold? They are Class A. The back-end load is covered as footnote 1 in the fund Prospectuses. A contingent deferred sales charge of 1.00% applies on certain r...
by onourway
Sun Feb 19, 2017 10:45 am
Forum: Investing - Theory, News & General
Topic: Why is American funds returns too good to be true?
Replies: 45
Views: 6471

Re: Why is American funds returns too good to be true?

Our 401k has no-load American Funds. They have done well for me over the past 15 years, but I still recently moved most of my holdings to Vanguard Index funds. In back-testing the difference between my American Funds portfolio and index funds was impossible to discern in any significant manner. Smal...
by onourway
Fri Feb 17, 2017 10:52 pm
Forum: Investing - Help with Personal Investments
Topic: Question on cash needs in taxable account
Replies: 19
Views: 2151

Re: Question on cash needs in taxable account

If we were discussing someone already in retirement, that changes things. I saw nothing to indicate that. Re-reading the first post I can see it going either way. Are we talking short-term cash needs in retirement, or are we talking an emergency fund? The title and the '$25k withdrawn in an emergenc...
by onourway
Fri Feb 17, 2017 10:33 pm
Forum: Investing - Help with Personal Investments
Topic: Question on cash needs in taxable account
Replies: 19
Views: 2151

Re: Question on cash needs in taxable account

Triple digit golfer, Why? It is still interest income and taxed as ordinary income. Meanwhile, you get qualified dividend from stock which is taxed the same as long-term capital gain. Long-term capital gain tax is lower than ordinary income tax. So, how can this be better? KlangFool If I may, From ...
by onourway
Fri Feb 17, 2017 9:43 pm
Forum: Investing - Help with Personal Investments
Topic: Question on cash needs in taxable account
Replies: 19
Views: 2151

Re: Question on cash needs in taxable account

Many people do just that, although historically the yield on municipals has been such that the taxable equivalent yield only makes this work favorably for those in higher income brackets (~28% federal or higher). Currently yields on municipals is quite good, so this is a potential option. For exampl...
by onourway
Fri Feb 17, 2017 9:08 pm
Forum: Investing - Help with Personal Investments
Topic: Question on cash needs in taxable account
Replies: 19
Views: 2151

Re: Question on cash needs in taxable account

Wouldn't that depend on your income tax rate, the yield of the bonds held in taxable, and how long you'd held the bonds for? Let's say you held $25,000 as bonds in your taxable and the SEC Yield is 2.73%. Your federal tax is 28% and state tax is 6%. You've held it for 10 years before needing to cash...
by onourway
Wed Feb 15, 2017 8:15 pm
Forum: Investing - Help with Personal Investments
Topic: Stock Market Fears
Replies: 55
Views: 7290

Re: Stock Market Fears

Ann, You don't say what age you are but consider that for most people just starting retirement they likely need to plan for 30+ years still. So absolutely adjust your allocation in a way that is appropriate for the stage of life you are at now, but realize that most people will need to allow for som...
by onourway
Wed Feb 15, 2017 1:10 pm
Forum: Investing - Help with Personal Investments
Topic: Backdoor Roth with old existing nondeductible tIRA?
Replies: 5
Views: 516

Re: Backdoor Roth with old existing nondeductible tIRA?

Thank you both. I do not really know for sure if it was deducted or not, but am fairly confident it was not and virtually certain an 8606 was never filed. I didn't even know she had this account until recently. I don't mind paying tax on the contribution, just was a little unclear how to handle it. ...