Search found 9500 matches

by sport
Wed Jan 23, 2008 12:05 am
Forum: Personal Investments
Topic: The best way to produce montly income with 100k?
Replies: 10
Views: 3732

Cd's are also a possibility. Some short term Cd's are available at 4.75% or slightly better, but withdrawals are subject to penalties. What Dale states is correct. However, it should be made clear that there are generally no penalties for taking interest from a bank CD. The penalties only apply if ...
by sport
Tue Jan 22, 2008 11:46 pm
Forum: Personal Investments
Topic: The best way to produce montly income with 100k?
Replies: 10
Views: 3732

Most banks and S&Ls offer Certificates of Deposit that have a monthly payment option. This is extremely safe as long as the bank is FDIC insured. There are also similar accounts at insured credit unions. At 4.5% interest you would receive about $375 per month.

Best wishes,
Jeff
by sport
Tue Jan 22, 2008 7:32 pm
Forum: Investing - Theory, News & General
Topic: Standard Deduction VS. Itemized Deduction
Replies: 18
Views: 4359

Vinny, Capital gains and losses are completely different and separate from itemized or standard deductions. Capital gains/losses are shown on schedule D. Itemized deductions are shown on another schedule (Schedule B if I remember correctly). Just a suggestion: Get a copy of a 1040 long form. It does...
by sport
Mon Jan 21, 2008 10:52 pm
Forum: Personal Finance (Not Investing)
Topic: Best/most economical fax solution?
Replies: 36
Views: 6443

If you want inexpensive long distance service, Pioneer Telephone offers long distance at 2.7 cents per minute 24/7, with no monthly minimums. If you let them bill your credit card, there are no billing charges either. It would allow you to send long distance faxes for mere pennies, and then only whe...
by sport
Sun Jan 20, 2008 10:58 pm
Forum: Personal Investments
Topic: money market distributions
Replies: 2
Views: 1102

MM fund interest is calculated daily, but paid monthly. You will not lose any interest by selling shares.

Best wishes,
Jeff
by sport
Sun Jan 20, 2008 9:22 pm
Forum: Personal Finance (Not Investing)
Topic: Mens Dress Shirts for those who are Frugal?
Replies: 128
Views: 60571

Costco has nice dress shirts that are inexpensive.
by sport
Sun Jan 20, 2008 8:46 pm
Forum: Investing - Theory, News & General
Topic: Do you trust TIPS and I-bonds to protect you from inflation?
Replies: 18
Views: 3637

Re: TIPS and I Bonds

What's nice about the I Bonds (especially those oldies but goodies) is that the fixed rate is good for up to 30 years. That means you don't have to worry about constantly reinvesting the proceeds at possibly lower rates, as you might have to do with shorter-term maturity vehicles. Regards, Mel Mel,...
by sport
Fri Jan 18, 2008 12:08 am
Forum: Investing - Theory, News & General
Topic: What if I don't want to claim a capital loss?
Replies: 9
Views: 2045

Re: What if I don't want to claim a capital loss?

I am planning on selling some of my taxable funds so I can put the money into my Roth for this year. However, I expect to have very little taxable income and I'll probably be in the 10% tax bracket. So I gain very little by claiming the $1000 or so of loss I will have in the funds I will sell. Is t...
by sport
Tue Jan 15, 2008 7:46 pm
Forum: Personal Investments
Topic: Money Market Fund or Account
Replies: 6
Views: 1690

Re: Money Market Fund or Account

I have been trying to decide between a money market fund such as Vanguard Prime Money Market or just stick with the money market account I have with CapitalOne. The money market account right now is paying 4.00 APY, 3.92% interest. I know money market accounts are insured by FDIC up to 100,000 and ...
by sport
Thu Jan 10, 2008 8:37 pm
Forum: Investing - Theory, News & General
Topic: Fire and Theft Insurance
Replies: 6
Views: 1535

In my experience, comprehensive coverage is quite inexpensive. Even an old car can easily have a $5000 replacement value. I recommend the coverage if it does not cost too much.

Jeff
by sport
Wed Jan 09, 2008 8:54 pm
Forum: Investing - Theory, News & General
Topic: Vanguard Health Fund
Replies: 5
Views: 1495

Re: Vanguard Health Fund

Hi, I know this fund is closed to new investors so a post may be of little interest to many, but could someone enlighten me as to why this fund has such dramatic rises and falls? Aside from the months that it pays out dividends and the nav is changed to reflect it, why does this fund move over two ...
by sport
Wed Jan 09, 2008 2:21 am
Forum: Personal Investments
Topic: Estimated Income Taxes
Replies: 17
Views: 4748

Estimated Income Taxes

For those who file estimated tax payments, don't forget they are due by January 15.

Uncle Sam wants his money! :(

Jeff
by sport
Sat Jan 05, 2008 5:13 pm
Forum: Investing - Theory, News & General
Topic: Unemployment rises to 5%
Replies: 16
Views: 3076

FinanceGeek wrote: that place seems to make places like New Jersey or even Cleveland sound not-so-bad.
I beg your pardon. :wink:
by sport
Wed Jan 02, 2008 6:13 pm
Forum: Investing - Theory, News & General
Topic: how to do the math?
Replies: 11
Views: 2642

I currently hold a separate emergency fund that if added to my portfolio, would increase its overall value by about 8%. I determined the size of this fund based upon my current salary and estimates of costs to keep everything afloat should I lose my job for 6 to 12 months. This seems like a lot of ...
by sport
Tue Jan 01, 2008 5:57 pm
Forum: Investing - Theory, News & General
Topic: 2008 BOGLEHEAD CONTEST REGISTRATION
Replies: 317
Views: 80401

1500

Jeff
by sport
Sat Dec 29, 2007 6:46 pm
Forum: Investing - Theory, News & General
Topic: Countrywide CDs
Replies: 23
Views: 4800

Re: Question for eight8

For those seeking larger FDIC insurance coverage on certificates of deposits ask you bank if they participate int he CDARS program which allows your bank to offer to you up to $50,000,000 in FDIC coverage. Yes it is legal and has been accepted by all of the bank examiners. In fact the program was s...
by sport
Sat Dec 29, 2007 12:30 am
Forum: Personal Investments
Topic: Banks long hold on deposit - Security or for Interest?
Replies: 23
Views: 5247

Personally I would not attempt this unless I want to be hit with NSF fees. I would also not do this as a matter of course. When I have a large check, I personally take it to a branch where I am known, and ask permission each time. I know which teller or manager has given me the OK. If NSF fees were...
by sport
Fri Dec 28, 2007 8:03 pm
Forum: Personal Investments
Topic: Banks long hold on deposit - Security or for Interest?
Replies: 23
Views: 5247

When I make a large deposit to my checking account, I ask the bank for "next day availability". Normally, unless the deposit is a bank check, they will not give me that availability. However, they say that I should feel free to write checks, use a debit card, or make ACH transfers the day after the ...
by sport
Thu Dec 27, 2007 7:33 pm
Forum: Personal Investments
Topic: 401k check - rollover to IRA
Replies: 4
Views: 1531

Brandon, I believe all that you need is a deposit slip for your existing account. If you do not have one, ask Vanguard to send one to you. All you then need to do is complete the deposit slip and mail it with the check to Vanguard. If you want to put the money into a different fund than the one you ...
by sport
Fri Dec 21, 2007 2:41 am
Forum: Personal Investments
Topic: Will I get in trouble with the IRS If I open an ROTH IRA?
Replies: 3
Views: 1402

To put money into an IRA, you must have EARNED INCOME. Dividends, rents, interest and capital gains do not count for this. Earned income is normally wages, commissions, salaries, or profit from running a business. IRA contributions cannot exceed your earned income for the calender year. (There are a...
by sport
Wed Dec 19, 2007 11:28 pm
Forum: Personal Investments
Topic: Sell your home yourself or use a real estate agent?
Replies: 34
Views: 10642

I sold a house in a rust-belt city last June. There were many more houses for sale than buyers. I used an agent, and even then, the process took 14 months. I am glad I used an agent. A similar house across the street from that one has been for sale for almost 3 years. That seller has tried a number ...
by sport
Tue Dec 18, 2007 2:17 am
Forum: Personal Investments
Topic: CDs considered cash or bonds, ref AA
Replies: 15
Views: 4062

Please excuse my ignorance in this area, but what is the expected return on a $10,000 investment in a Money Market account that yields approximately 4.29%? Hi Budd: $10,000 x .0429 = $429 per year. Regards, Mel Hi Mel, I would say that the "expected return" on a money market fund is unknown. The "y...
by sport
Mon Dec 17, 2007 7:43 pm
Forum: Investing - Theory, News & General
Topic: Errors in VG fund performance today?
Replies: 10
Views: 2765

Re: Errors in VG fund performance today?

Vanguard is showing 8% to 13% drops in Primecap, Cap Opportunity, Precious Metals, International Growth and other funds today. Uhm ... is this some sort of error in their IT system? I mean it was a bad day in the market today, but not that bad. The apparent errors are due to the funds going ex-divi...
by sport
Sat Dec 15, 2007 10:32 pm
Forum: Investing - Theory, News & General
Topic: Timing CD Renewal
Replies: 8
Views: 2220

Re: I DON'T KNOW

I don't consider buying CD's as market timeing. Moving money around in FDIC savings, checking, or other guaranteed accounts is just common sense. meph, If I had waited for my old CD to mature, I would have renewed it at 4.75%. By anticipating the interest rate drop and buying a replacement CD two w...
by sport
Sat Dec 15, 2007 10:26 pm
Forum: Investing - Theory, News & General
Topic: Timing CD Renewal
Replies: 8
Views: 2220

Isn't that counting your chickens before they hatch? What if rates go up to 8% next year? livesoft, The CD is part of a ladder and I was ready to purchase a 6-year CD when the old one matured. I would be tied up for 6 years in either case. I would rather be locked in for 5.1% than 4.75%. If rates g...
by sport
Sat Dec 15, 2007 6:18 pm
Forum: Investing - Theory, News & General
Topic: Timing CD Renewal
Replies: 8
Views: 2220

Re: Timing CD Renewal

I know that this is a little market timing in the CD market, but I cannot see rates increasing in the next two weeks, and they certainly may decrease. Since I am satisfied with the current rate, I do not wish to risk the rate falling just before I need to make another commitment. I believe that in ...
by sport
Fri Dec 14, 2007 5:20 pm
Forum: Investing - Theory, News & General
Topic: Forget whether I can or can't beat the market, do I need to?
Replies: 38
Views: 7367

Sunny,
I believe the proponents of active management have a somewhat different outlook. They ask how can they maximize their investment results for a given amount of risk. It is about maximizing returns, not beating any particular bogey.

Best wishes,
Jeff
by sport
Mon Dec 10, 2007 3:32 pm
Forum: Personal Investments
Topic: Question on the math.. Roth IRA, Taxes and contribution
Replies: 4
Views: 981

Re: Question on the math.. Roth IRA, Taxes and contribution

Does it make sense to take that money out and put it in a low cost index fund in a taxable account, so that we can continue to contribute year after year, versus just leaving $20k in the account, and leaving it alone for ~25 years? Brandon, No, it does not make sense to withdraw the money from your...
by sport
Tue Dec 04, 2007 7:22 pm
Forum: Investing - Theory, News & General
Topic: I-Bonds annual limit slashed from $30K to $5K?
Replies: 27
Views: 6689

Perhaps the lower limit is intended to reduce redemptions and repurchases if (and when) the fixed rate is increased. If this is so, the lower limit will give the Treasury greater ability to raise future rates. Maybe this will be a blessing in disguise. One can only hope.

Best wishes,
Jeff
by sport
Sat Dec 01, 2007 12:43 am
Forum: Investing - Theory, News & General
Topic: Timing CD Renewal
Replies: 8
Views: 2220

Timing CD Renewal

I have a CD in my ladder that matures in two weeks that I am planning to renew for another 6 years. Yesterday, my bank had an APY of 5.1% for this term. I am concerned that if I wait another two weeks, interest rates will fall and I will not be able to get this rate. This is especially true with the...
by sport
Fri Nov 30, 2007 9:09 pm
Forum: Personal Investments
Topic: alternating itemized/standard deductions to reduce fed tax?
Replies: 30
Views: 7242

ramblinwreck, I have been using this tax reduction technique for the last 28 years. I ran it past a CPA before I started and got his blessing. You can shift many deductable items. For example, you can bunch charitable gifts into alternative years. As you have found, real estate taxes can also be bun...
by sport
Fri Nov 30, 2007 4:22 pm
Forum: Personal Investments
Topic: Alternative to CDs
Replies: 9
Views: 2959

Longer term CDs are still yielding more than 5%. If you get these, you can "lock in" this rate for 5 or 6 years.

Best wishes,
Jeff
by sport
Wed Nov 14, 2007 3:24 pm
Forum: Personal Investments
Topic: Federal Money Market Fund
Replies: 7
Views: 1685

Federal Money Market Fund

Today, I received the Vanguard Money Market Annual report. While reviewing it, I noted that the Federal MM fund compares very favorably with the Prime MM fund. For the year ending Aug 31, 2007, the Federal Fund average total return was 5.2% and the Prime Fund total return was also 5.2%. For ten year...
by sport
Wed Nov 07, 2007 3:49 am
Forum: Personal Investments
Topic: Possible Capital gain tax changes? sell non index stock now?
Replies: 12
Views: 2953

LH, One good way to get rid of unwanted stock is to give it away as a charitable donation. If you do this, you get to itemize the current value of the stock and the capital gains are never taxed. Even if you do not itemize, the avoidance of the CG tax makes it preferrable to donating cash. Best wish...
by sport
Sun Oct 28, 2007 5:00 pm
Forum: Personal Investments
Topic: Thoughts on Percentage of Cash in Fixed Income Allocation?
Replies: 9
Views: 1975

The advantage of holding money in a MM fund is that it is immediately available, with no chance of loss due to interest rate increases. The disadvantage is that if interest rates go down, you will not gain as you would with a bond fund, and you will not have the higher rate "locked in" as you would ...
by sport
Sat Oct 27, 2007 4:13 pm
Forum: Investing - Theory, News & General
Topic: A 4% safe withdrawal rate with no risk of "failure"
Replies: 56
Views: 16556

Re: A puzzlement...

The Trinity paper (thanks again, Bob) notes in its conclusions: "Retirees who demand CPI-adjusted withdrawals during their retirement years must accept a substantially reduced withdrawal rate from the initial portfolio." This is the sort of thing that makes my brain slip a cog. What retiree in his ...
by sport
Sat Oct 27, 2007 3:48 pm
Forum: Personal Investments
Topic: Roth IRA and Kids
Replies: 11
Views: 4124

buyza wrote:On a somewhat unrelated topic, is income made off investing qualified to be put in a roth ira? Or do I have to "put in hours" at the family firm.
For an IRA, the requirement is Earned Income. Dividends, interest, and capital gains are not "earned".

Best wishes,
Jeff
by sport
Mon Oct 22, 2007 7:35 pm
Forum: Investing - Theory, News & General
Topic: FDIC Insurance
Replies: 6
Views: 1505

nisiprius, Thanks for following up on this. That is the answer I would have expected. In your earlier post, you suggested that any interest rate difference would be small. That is probably true under most circumstances. However, consider the situation where a depositor is three years into a 6-year C...
by sport
Sat Oct 20, 2007 6:05 pm
Forum: Investing - Theory, News & General
Topic: Age in bonds,
Replies: 41
Views: 11687

Re: Age in bonds,

A retiree, who has accumulated enough for a comfortable retirement might have the risk tolerance for a 60/40 allocation. However, she does not have the need to take that much risk, and a 40/60 or a 30/70 allocation may meet her needs without exposing her nest egg to as much risk. Jeff, If I had a g...
by sport
Sat Oct 20, 2007 1:01 am
Forum: Investing - Theory, News & General
Topic: Age in bonds,
Replies: 41
Views: 11687

Chin, A retiree, who has accumulated enough for a comfortable retirement might have the risk tolerance for a 60/40 allocation. However, she does not have the need to take that much risk, and a 40/60 or a 30/70 allocation may meet her needs without exposing her nest egg to as much risk. As Larry says...
by sport
Fri Oct 19, 2007 12:35 am
Forum: Investing - Theory, News & General
Topic: FDIC Insurance
Replies: 6
Views: 1505

FDIC Insurance

If a bank that has FDIC insurance should fail, the FDIC usually will find another bank to take over the accounts. If a depositor has a CD in the bank at the time of failure, is the new bank required to honor the terms of the CD, or can they refuse to pay the high rate and let the depositor just with...
by sport
Thu Oct 18, 2007 1:11 pm
Forum: Personal Investments
Topic: Windfall
Replies: 6
Views: 1953

QBall, If I had money that I would need to spend (or might need to spend) in 3 to 5 years, I would put it in an FDIC insured 3-year CD. If the amount is large, do not put more than 100K in any single bank. The CD will have an interest rate similar to that of the money market funds. However, the rate...
by sport
Thu Oct 18, 2007 1:02 pm
Forum: Personal Investments
Topic: Asleep at the Wheel
Replies: 11
Views: 3048

Don't delay the insurance

(2)We are getting the insurance. The main thing here is that I want to fill out the VG 403b form in the next day or 2; all the rest is not going to happen immediately! H Heather, I suggest that you do not delay getting the umbrella insurance. It is affordable, and if you need it, it is invaluable. ...
by sport
Tue Oct 16, 2007 12:35 am
Forum: Personal Investments
Topic: Saving for a car....Save or Invest?
Replies: 7
Views: 1666

Mikey, Keep in mind that a car purchase may not happen according to your planned schedule. Your present car could be stolen, or wrecked, and even with insurance paying what your present car is worth, you might want to get a newer one as long as you have to buy one. In that case, you might want your ...
by sport
Mon Oct 15, 2007 3:59 pm
Forum: Investing - Theory, News & General
Topic: Any thoughts on new I-bond rates?
Replies: 16
Views: 4408

What are the expectations for the variable component (inflation adjustment) for the next 6 months?

Jeff
by sport
Sun Oct 14, 2007 1:45 am
Forum: Personal Finance (Not Investing)
Topic: How many games will Borowski blow in the ALCS?
Replies: 19
Views: 5377

Borowski did just fine in game two. So did the rest of the Indians. Seven runs in the 11th inning. Go Tribe!

Jeff
by sport
Sun Oct 14, 2007 1:40 am
Forum: Investing - Theory, News & General
Topic: M* Tools vs Vanguard Portfolio Watch
Replies: 6
Views: 2271

Vanguard Portfolio Watch also considers all domestic funds to be 100% domestic, regardless of the percentage of foreign holdings. In general, it treats most funds as a 100% lump of some kind, even if there are significant holdings in other areas. I find it essentially useless for determining my asse...
by sport
Thu Oct 11, 2007 12:37 am
Forum: Personal Finance (Not Investing)
Topic: How many games will Borowski blow in the ALCS?
Replies: 19
Views: 5377

Go Tribe! :sharebeer
by sport
Mon Oct 08, 2007 5:59 pm
Forum: Investing - Theory, News & General
Topic: Question about Vanguard money market funds
Replies: 8
Views: 2545

Mike, You need to hold your taxable cash someplace. A MM fund is good for short term savings, or an emergency fund. If your tax bracket is high enough, Vanguard has tax exempt MM funds as well. My rule of thumb is that for tax brackets 25% or less, the taxable funds are best. If your bracket is high...
by sport
Mon Oct 08, 2007 5:51 pm
Forum: Investing - Theory, News & General
Topic: Is this why 401k fees are so high?
Replies: 6
Views: 1854

Other reasons

One reason that 401k plans have high fees is that the company may be a small one. In this case, the plan administrator, who is in business to make a profit, must obtain his profit from a small base of investors. If the employer will not agree to foot the bill for the plan expenses, then the money mu...