Search found 62421 matches

by livesoft
Fri Mar 16, 2007 3:02 pm
Forum: Investing - Help with Personal Investments
Topic: How much is your net worth?
Replies: 33
Views: 20545

What I find interesting about such polls is that contrary to popular belief, it seems that millionaires do not use financial advisors. With more than 40% of the respondents professed millionaires, I will infer that since they are posting on this message board that they have invested in Vanguard mutu...
by livesoft
Fri Mar 16, 2007 2:56 pm
Forum: Investing - Help with Personal Investments
Topic: Necessary to file revised 1040 if only small difference?
Replies: 14
Views: 8325

I am in the middle of an experiment that will help answer the question. In August 2005, I received a corrected 1099 for the 2004 tax year. I had already filed my taxes the previous April. With the corrected 1099, I would owe about $8 more in taxes. I have not filed an amended return. I would not be ...
by livesoft
Thu Mar 15, 2007 9:15 pm
Forum: Investing - Help with Personal Investments
Topic: What To Do With A $300,000 Gross Income? Please Help.
Replies: 36
Views: 16847

I forget which type of account can be used for expenses at K-12 private schools. Is that a 529 plan or a Coverdell? Even though I am the product of a well-regarded Northern Virginia public high school, maybe Neil Jr. will go to private schools. In that case, maybe building an "endowment" now for fun...
by livesoft
Thu Mar 15, 2007 8:33 pm
Forum: Investing - Help with Personal Investments
Topic: What To Do With A $300,000 Gross Income? Please Help.
Replies: 36
Views: 16847

... Second, keep in mind your tax bracket could go down in the future, but your tax rate could still go up. And you already have a huge exposure to future tax rate increases thanks to your future wage income. So, reducing your exposure to future tax rates just a bit with the Roth 401(k) isn't comin...
by livesoft
Thu Mar 15, 2007 6:56 pm
Forum: Investing - Help with Personal Investments
Topic: What To Do With A $300,000 Gross Income? Please Help.
Replies: 36
Views: 16847

Mr. Neil, in your summary you missed a major point I tried to make: Live Well Below Your Means. This makes all the other decisions easy. For example, you asked about 529 plans. We have 529 plans for our kids, but we started them relatively late after the fees for such plans dropped. We are not worri...
by livesoft
Thu Mar 15, 2007 6:33 pm
Forum: Investing - Help with Personal Investments
Topic: International Stocks More Correlated to US?
Replies: 8
Views: 4026

Of course international markets are correlated with domestic markets. That does not mean you should not invest in them. Read the digested "Global Market Correlation" from Ian Salisbury WSJ 3/8 here: http://home.flash.net/~factoids/fact7/fact.htm Over the years, I've upped my international allocation...
by livesoft
Thu Mar 15, 2007 4:04 pm
Forum: Investing - Help with Personal Investments
Topic: Help! Stuck with a Variable Deferred Annuity
Replies: 17
Views: 6375

Just to be clear, it is not a Roth IRA? It's an after-tax account?
If it were me, I would cash it in.
by livesoft
Thu Mar 15, 2007 4:00 pm
Forum: Investing - Help with Personal Investments
Topic: Vanguard REIT index fund - need your help please!
Replies: 6
Views: 2659

If you sell now, will you realize a loss? If so, then sell ASAP. You will have saved money when it comes to tax time. In theory you are not allowed to purchase the fund again for 30 days or the loss will be deferred. This is even if you buy it back in your IRA. Or just buy another REIT index fund. T...
by livesoft
Thu Mar 15, 2007 10:41 am
Forum: Investing - Theory, News & General
Topic: Why Your Home Is Not the Investment You Think It Is
Replies: 29
Views: 13045

My home value has not kept up with inflation over the last 15 years. I live in a hot area, so maybe that's the reason.
by livesoft
Thu Mar 15, 2007 10:33 am
Forum: Investing - Theory, News & General
Topic: CNNMoney Article: 2 Guys Retiring/Retired Early
Replies: 19
Views: 7767

Re: Not "large expenses" to him, maybe.

...he's saving more than half of his $180,000 salary. "Aside from my mortgage and property taxes, I don't have many large expenses," he says. "Most of my social life centers around outdoor activities that don't cost very much." I can't imagine how he's spending that $80,000-90,000. Does he buy the ...
by livesoft
Thu Mar 15, 2007 9:55 am
Forum: Investing - Theory, News & General
Topic: How to use M* Xray?
Replies: 14
Views: 5407

In order to save a portfolio at M*, you will need to register at the site and perhaps sign up and pay for premium services. The freeworkaround (as reported by kcyahoo in this thread ) is to go to the TRowePrice web site and register for free. Then access the Morningstar tools from your TRowePrice we...
by livesoft
Thu Mar 15, 2007 7:35 am
Forum: Investing - Help with Personal Investments
Topic: What To Do With A $300,000 Gross Income? Please Help.
Replies: 36
Views: 16847

Just curious, who are the beneficiaries for the 529s? It's a trick that some people use. You can have yourself as a beneficiary now without the intention of going to college. Then when you have child, you can change the beneficiary to be the child. That way, you get tax-free returns for the unconce...
by livesoft
Thu Mar 15, 2007 7:28 am
Forum: Investing - Theory, News & General
Topic: CNNMoney Article: 2 Guys Retiring/Retired Early
Replies: 19
Views: 7767

Let's see a realistic article explaining the difficulties how an average family copes with saving in order to reach their goals. You know, the ones where basic costs (shelter, energy, food, clothing) eats up a greater percentage of their after tax pay. However, everyone loves the "feel-good" articl...
by livesoft
Wed Mar 14, 2007 9:15 pm
Forum: Investing - Help with Personal Investments
Topic: How much money do you need to retire at 40?
Replies: 30
Views: 13536

You only need $2.95 ... provided your spouse does not retire.
by livesoft
Wed Mar 14, 2007 8:43 pm
Forum: Investing - Help with Personal Investments
Topic: What To Do With A $300,000 Gross Income? Please Help.
Replies: 36
Views: 16847

We were once young professionals. Something Dr. and Mrs. Livesoft have always done is live below their means. So that's my first suggestion. One thing that has helped us with two excellent incomes is to live off the income of the lower earning spouse and invest the income of the higher earning spous...
by livesoft
Wed Mar 14, 2007 8:13 pm
Forum: Investing - Theory, News & General
Topic: S&P 500 + Extended Market Index Fund = Total Market Inde
Replies: 7
Views: 3126

This has probably been mentioned before, but .... Years ago I owned extended market. It paid 10% of assets out as a distribution. That was quite an OUCH for my taxes. It is more tax efficient to own the total market fund than vfinx and vexmx. In VTSMX, a company that grows large enough to move from ...
by livesoft
Wed Mar 14, 2007 6:29 pm
Forum: Investing - Help with Personal Investments
Topic: CD vs Bond Funds
Replies: 7
Views: 3462

Re: short vs. long run

right now with the current yield curve, CDs look good. But bonds have historically outperformed all cash instruments over the long run. ... No one has suggested that one keep fixed income assets in CDs for a long time, but in the short term, they ain't a bad place to be. The trick is to switch to b...
by livesoft
Wed Mar 14, 2007 4:48 pm
Forum: Investing - Theory, News & General
Topic: Money market accounts vs. funds
Replies: 8
Views: 3049

MM funds usually quote a 7-day average yield. The APY is higher if the yield does not drop.
I'm not sure about MM accounts, but savings accounts quote an APY.

So the APY of something like VMMXX is around 5.2%. So if you are deciding based on interest rate, then be sure to compare apples-to-apples.
by livesoft
Wed Mar 14, 2007 3:10 pm
Forum: Investing - Theory, News & General
Topic: ETFs vs Funds
Replies: 7
Views: 2424

One should also consider answers that they were not looking for :D as well. Otherwise, you get into the mind set of reinforcing your own world outlook ... which may not always be for the best (whatever that means).
by livesoft
Wed Mar 14, 2007 12:54 pm
Forum: Investing - Help with Personal Investments
Topic: What To Do With A $300,000 Gross Income? Please Help.
Replies: 36
Views: 16847

A "Pimp My Portfolio" thread, I like it! I'm at work, so I will comment more fully later. One thing does stand out for me: Why bother with Emigrant at all when Vanguard MM Prime pays a higher APY? Another thing, there is nothing wrong with cash or CDs in a tax-deferred account nowadays. In my spouse...
by livesoft
Wed Mar 14, 2007 10:43 am
Forum: Investing - Theory, News & General
Topic: ETFs vs Funds
Replies: 7
Views: 2424

This topic has been covered at length and one can find good articles via any good web search engine. Here are some examples for your reading pleasure:
http://www.altruistfa.com/etfs.htm
http://www.fundadvice.com/articles/inve ... -etfs.html
http://etf.seekingalpha.com/etfguide
by livesoft
Tue Mar 13, 2007 10:01 pm
Forum: Investing - Help with Personal Investments
Topic: Roth IRA jam
Replies: 7
Views: 3550

Re: Roth IRA jam

Is there anyway to "roll" it over into a Vanguard Roth IRA (I doubt it)? One can simply transfer the Roth to Vanguard. You do not even have to contact Fidelity at all. Simply tell Vanguard that you want them to pull the money over. No penalty. No muss. No fuss. No talking to Fidelity or your adviso...
by livesoft
Tue Mar 13, 2007 9:04 pm
Forum: Investing - Help with Personal Investments
Topic: CD vs Bond Funds
Replies: 7
Views: 3462

Re: CD vs Bond Funds

What is the advantage of using Bonds instead of Cash if cash rates are higher? There are none. There is a so-called inverted yield curve nowadays which is unusual, so in these unusual times stick to cash and short term bonds. Just remember, cash does not have a chance of capital gains. If interest ...
by livesoft
Tue Mar 13, 2007 3:19 pm
Forum: Investing - Theory, News & General
Topic: What percent in equities if you had $5 million TODAY?
Replies: 23
Views: 9091

Equities have many advantages tax-wise and of course the step-up basis for your heirs. I see no reason not to have a 60% or more plug of them. If you were living off your portfolio and kept 40% in fixed income, that would mean that you had 10 times your safe withdrawal rate in fixed income. That sho...
by livesoft
Tue Mar 13, 2007 3:15 pm
Forum: Investing - Theory, News & General
Topic: STORY: The Trade-Offs For Free E-Trades
Replies: 19
Views: 6561

Suppose your a fund company that has participated in the NTF fund programs .... Why would you want to pay to participate when you can not pay and still participate. I think the reality is that those NTF networks are a crock. The funds in them are typically (not always) load funds with 12b-1 fees th...
by livesoft
Tue Mar 13, 2007 1:26 am
Forum: Investing - Theory, News & General
Topic: STORY: The Trade-Offs For Free E-Trades
Replies: 19
Views: 6561

http://finance.yahoo.com/q?s=WFLXX

Use finance.yahoo for MMF yields.
by livesoft
Tue Mar 13, 2007 1:13 am
Forum: Investing - Theory, News & General
Topic: STORY: The Trade-Offs For Free E-Trades
Replies: 19
Views: 6561

Re: One More Thing

One thing I'd like to point out is that ETrade is deliberately not allowing you to sweep your cash into a high yielding MM account. They are able to "pocket the spread" between what they are paying you and what they can get from a risk-free investment, like T-Bills. Schwab and TDAmeritrade pay a pi...
by livesoft
Tue Mar 13, 2007 1:08 am
Forum: Investing - Theory, News & General
Topic: STORY: The Trade-Offs For Free E-Trades
Replies: 19
Views: 6561

OUJohnNasr wrote:Thank you for clearing up what Wells Fargo is currently paying on their cash balances. Does this apply to taxable brokerage accounts as well?
I only have a taxable brokerage account at WF as part of the PMA, so the answer is yes.

I do not know about IRA accounts.
by livesoft
Tue Mar 13, 2007 12:50 am
Forum: Investing - Theory, News & General
Topic: STORY: The Trade-Offs For Free E-Trades
Replies: 19
Views: 6561

OUJohnNasr wrote: Let's say that you are using WellsTrade and for some reason, they are only paying .5% to 1% on cash balances.
Once again, the cash sweep at WellsTrade is WFLXX and pays 4.6% nowadays and not 0.5 to 1%. Full disclosure: I've had a WF PMA account for more than a year now.
by livesoft
Tue Mar 13, 2007 12:48 am
Forum: Investing - Theory, News & General
Topic: STORY: The Trade-Offs For Free E-Trades
Replies: 19
Views: 6561

Let's add some perspective to this discussion. Question: What is the difference between 4.4% and 5% annual interest paid on a $5000 investment? Answer: It's about $30. Since the WF cash sweep (WFLXX) pays about 4.6% nowadays and the TDAmeritrade MMfund (WTOXX) pays about 4.4% nowadays, I see no reas...
by livesoft
Mon Mar 12, 2007 8:07 pm
Forum: Investing - Theory, News & General
Topic: Scott Burns' Investment Advisory Firm
Replies: 7
Views: 3571

If DFA funds were available for the DIY-er without any advisor fees, we would all be DFA-heads and not Bogle-heads.
by livesoft
Mon Mar 12, 2007 3:39 pm
Forum: Investing - Theory, News & General
Topic: Scott Burns' Investment Advisory Firm
Replies: 7
Views: 3571

Re: why pay an advisor?

no matter who the advisor is, or his motives, the assumption here is that he'll give you a better return than index funds? For the Diehard philosophy, that's throwing the money away because over time, it's likely he won't beat index funds unless significantly more risk is taken. ... Steve An intere...
by livesoft
Mon Mar 12, 2007 3:31 pm
Forum: Investing - Theory, News & General
Topic: Asset Allocation Tool ?
Replies: 19
Views: 8761

Re: Category definitions

Doc wrote:As far as I am concerned this makes Vanguards tool next to useless.
Since M* XV and VG PW gave me the same results to within a percent, then if the VG tool is next to useless, the M* tool is right next to it and next to useless as well.

Anybody got a suggestion for another tool to use?
by livesoft
Mon Mar 12, 2007 1:26 pm
Forum: Investing - Help with Personal Investments
Topic: Prime Money Market
Replies: 7
Views: 3876

You are comparing apples-to-oranges with the interest rate. VMMXX pays something like 5.2% after compounding is figured in. Those online savings accounts quote APY which has all the compounding figured in already, so a 5.05% quote by Emigrant has to be compared to 5.2% from VG. I can use money from ...
by livesoft
Mon Mar 12, 2007 9:29 am
Forum: Investing - Theory, News & General
Topic: Asset Allocation Tool ?
Replies: 19
Views: 8761

When was the last time you used the PortfolioWatch tool? And is it more advanced than the PortfolioAnalysis tool? I showed above, contrary to reports above, VG does breakdown some funds into sub-allocations. Also, while M* X-ray does appear to do a breakdown, how do you know it is right? The divisio...
by livesoft
Mon Mar 12, 2007 9:19 am
Forum: Investing - Help with Personal Investments
Topic: Opinions on Asset Allocation for a 25 year old
Replies: 14
Views: 4888

You have listed a bunch of funds, but not an asset allocation. It would be easy to comment on your asset allocation if you gave it. Since S&P500 + Extended Market = Total Market, why not invest in the Total Stock Market instead? It would be more tax efficient. If the sum invested is large, I think a...
by livesoft
Mon Mar 12, 2007 8:18 am
Forum: Investing - Theory, News & General
Topic: Asset Allocation Tool ?
Replies: 19
Views: 8761

Re: T Rowe Price M*

.... The Vanguard tool did not save my allocations when I came back and also botched 3 or 4 sub allocations. Arghh. That's funny. I cannot enter info without it automatically being saved and showing up the next time. I also like the way one can place investtments into different accounts just as the...
by livesoft
Sun Mar 11, 2007 11:33 pm
Forum: Investing - Theory, News & General
Topic: Asset Allocation Tool ?
Replies: 19
Views: 8761

Re: M* through troweprice.com

Are you getting to the M* tools through the http://www.troweprice.com web site? Sign up at the price web site and that will give access to the M* tools on the price web site. Thanks for the tip. I was using the M* web site and my tdameritrade account which offers M* tools. I registered at TRP and e...
by livesoft
Sun Mar 11, 2007 10:16 pm
Forum: Investing - Help with Personal Investments
Topic: AA, what should I do, how should I get there
Replies: 2
Views: 1905

Even though your TIPS and REIT funds are taxable, you have probably been paying taxes on the distributions all along, so that they do not have much in the way of unrealized capital gains. You may be surprised that selling them may have little tax consequences that can be offset by selling some stock...
by livesoft
Sun Mar 11, 2007 9:08 pm
Forum: Investing - Theory, News & General
Topic: Asset Allocation Tool ?
Replies: 19
Views: 8761

VG's portfolio watch doe not do a very good jobs at the details of suballocations. The do not break down some of their own funds (like Primecap) into L/M/S - but show it as all LgCp. Ditto re a portion of a fund that might be foreign - all shown as 100% US. I mentioned this is another thread (maybe...
by livesoft
Sun Mar 11, 2007 8:01 pm
Forum: Investing - Theory, News & General
Topic: Asset Allocation Tool ?
Replies: 19
Views: 8761

Do you have an account at Vanguard? They have a PortfolioAnalysis or PortfolioWatch tool that I really like. You can enter all your outside investments while those at Vanguard are pulled in automatically. Your entries stick and appear the next time you use the tool. You can enter many "What if" port...
by livesoft
Sun Mar 11, 2007 5:21 pm
Forum: Investing - Theory, News & General
Topic: Scott Burns and Investment Expenses
Replies: 7
Views: 2795

Not all annuities in 403(b)s are poor. I have a 403(b) at TIAA-CREF. Their VAs have lower expenses than the average actively managed mutual fund. The CREF stock fund and others have a 5-star Morningstar rating. I would hate to have educators avoid contributing to a 403(b) at TIAA-CREF because they r...
by livesoft
Sun Mar 11, 2007 5:01 pm
Forum: Investing - Help with Personal Investments
Topic: Beneficiaries?
Replies: 7
Views: 3236

If a non-spouse inherits a traditional IRA, then they have a few choices: (a) withdraw all the money at once and it is included in their taxes as ordinary income (b) withdraw the minimum required amount each year based on life expectancy. So it seems to me that the older a person is or the higher th...
by livesoft
Sun Mar 11, 2007 4:43 pm
Forum: Investing - Help with Personal Investments
Topic: Does a TSA belong in my portfolio?
Replies: 5
Views: 2650

My understanding is that SS benefits are heavily affected if you have income likes yours. I would wonder whether not getting those SS benefits now and delaying them would be much better for your situation. Maybe someone else can chime in on that. The 403(b) money can generally be rolled over to an I...
by livesoft
Sun Mar 11, 2007 3:49 pm
Forum: Investing - Help with Personal Investments
Topic: Does a TSA belong in my portfolio?
Replies: 5
Views: 2650

Did you just write that you have NO (i.e. $0) in 403(b)s and that you have been putting your money into IRAs instead?
Did you choose Roth IRA or traditional IRA?
by livesoft
Sat Mar 10, 2007 10:21 pm
Forum: Investing - Help with Personal Investments
Topic: How to invest for a 15-year-old?
Replies: 8
Views: 3498

There are many more possibilities for the money besides those 3.

4) Car
5) Stereo
6) 105" flat screen TV
7) whatever
8) etc


Forget about annuities. Why would you ever think that?

It's his money, why would it need to be in a UGMA? Just have him open an account at any place of his choosing.
by livesoft
Sat Mar 10, 2007 3:44 pm
Forum: Investing - Theory, News & General
Topic: ishares Russell Microcap or Bridgeway Ultra-Small Co. ?
Replies: 20
Views: 10629

Both BRUSX and BRMCX are closed to new investors, aren't they?
So there's your answer.

There are other microcap ETFs, such as PZI, but the daily trading volume is miniscule, thus beware of the bid/ask spread. Even on a high volume day such as 2/27 you may not be able to unload at a price you like.
by livesoft
Sat Mar 10, 2007 11:46 am
Forum: Investing - Theory, News & General
Topic: Using ZECCO.com to build ETF Portfolio
Replies: 57
Views: 26917

Typically I sweep out any cash in my brokerage account to my NetBank account. I also wonder whether I can move my TD Ameritrade assets .... I just checked online and Netbank pays 4.5% on its money market which is lower than the 4.61% WFLXX pays and you would not have to manually do the ACH transfer...