I'm looking for an alternative to EM and Euro heavy bond mutual funds as a location for foreign currency exposure. I came across Ever Bank, but their CD minimums are higher than my comfort zone. Does anyone know of a good US bank for foreign currency account?
Lar
Search found 372 matches
- Fri Apr 22, 2011 11:18 pm
- Forum: Personal Investments
- Topic: Foreign Currency Accounts - US Banks
- Replies: 1
- Views: 746
- Tue Apr 19, 2011 8:33 pm
- Forum: Personal Investments
- Topic: Tips fund vs ibonds
- Replies: 8
- Views: 2284
- Tue Apr 19, 2011 8:19 pm
- Forum: Personal Investments
- Topic: Asset Allocation
- Replies: 4
- Views: 947
Bogle 11 - The Roth IRA may be advantageous over the long term from a tax standpoint. Your annual earnings will presumably increase over your career pushing you into a higher tax bracket. So having the taxes out of the way now may result in lower tax bill.
On the other hand, TSP ERs are really low, even compared to VG. You might look at the TSP L-funds, although you will have to get EM exposure elsewhere.
2012 Roth TSP
Lar
On the other hand, TSP ERs are really low, even compared to VG. You might look at the TSP L-funds, although you will have to get EM exposure elsewhere.
2012 Roth TSP
Lar
- Mon Apr 18, 2011 8:11 pm
- Forum: Personal Investments
- Topic: How does VG's questionnaire-based alloc. compare to yours?
- Replies: 51
- Views: 6418
I'm 8-12 years from retirement and projecting sufficient assets to generate needed investment income while taking less risk than I am actually comfortable with (assuming job holds up). With no consideration of need to take risk, the questionaire is of very limited value to me.
As other posters have noted, the results are sensitive to the interpretation of questions. Answering buy more instead of hold and sell nothing increases equity allocation 10%. Yet neither answer really reflects my actual investment behavior - I continued regular investments roughly at planned levels, but didn't rebalance into equities the way I really should have.
Also, breaking out TIPS/I-bonds and classes that hedge inflation would be helpful.
Lar
As other posters have noted, the results are sensitive to the interpretation of questions. Answering buy more instead of hold and sell nothing increases equity allocation 10%. Yet neither answer really reflects my actual investment behavior - I continued regular investments roughly at planned levels, but didn't rebalance into equities the way I really should have.
Also, breaking out TIPS/I-bonds and classes that hedge inflation would be helpful.
Lar
- Sat Apr 16, 2011 6:25 pm
- Forum: Personal Investments
- Topic: G Fund if debt ceiling not raised
- Replies: 8
- Views: 3796
Geithner Tricks
In the financial press, it is reported that the debt ceiling will be exceeded in mid-May. It is also reported that there are number of financial bookkeeping tircks that Treasury will use to keep things running into July (or is it June). I am not so confident that those tricks do not involve "borrowing" TSP G securities.
[political remarks removed by Mod]
Lar
[political remarks removed by Mod]
Lar
- Sat Apr 16, 2011 6:10 pm
- Forum: Personal Investments
- Topic: to reinvest or not reinvest dividends in taxable acct
- Replies: 70
- Views: 12298
Selective Reinvestment
I reinvest dividends and capital gains unless don't want/need any more of the asset class, the stock/bond style or fund is in wrong location for tax efficiency. Reinvestment options can be changed easily online.
I use Quicken, so tracking reinvestments and doing taxes is not really a burden. If I weren't using financial software, I might not automatically reinvest.
Lar
I use Quicken, so tracking reinvestments and doing taxes is not really a burden. If I weren't using financial software, I might not automatically reinvest.
Lar
- Sat Apr 16, 2011 9:19 am
- Forum: Personal Investments
- Topic: I-Bonds for E-Fund?
- Replies: 21
- Views: 3710
- Sat Apr 16, 2011 9:06 am
- Forum: Personal Investments
- Topic: 2011 Roth/TIRA Contribution Question
- Replies: 9
- Views: 897
Taxes
Were social security (OASDI) taxes withheld? Social scurity taxes only apply to earned income.
Lar
Lar
- Sat Apr 16, 2011 12:56 am
- Forum: Personal Investments
- Topic: USAA Roth IRA good?
- Replies: 26
- Views: 49289
Roth TSP
Look at the Roth TSP when that becomes available in 2012. The only down side Roth TSP compared to a Roth IRA I can think of is not being to take contributions out if necessary.
Lar
Lar
- Sat Apr 16, 2011 12:51 am
- Forum: Personal Investments
- Topic: Can pension be counted as part of bond allocation?
- Replies: 40
- Views: 8073
Private Pension
If you have a pension (or annuity) from the private sector, the pension (or insurance company) pays you monthly. Your pension is backed by the pension fund's investments, probably a mix of stocks, bonds, real estate and maybe other assets. The value of the pension fund investments will go up or down according to market conditions. You don't benefit from increases in value and you also don't assume the risk of drops in value. The pension fund owns the investments, so you really shouldn't count the teh pension as part of your investment protfolio.
Lar
Lar
- Sat Apr 16, 2011 12:28 am
- Forum: Personal Investments
- Topic: Do you find Quicken Useful? Do you fear security issues?
- Replies: 13
- Views: 2556
Use Quicken
I use Quicken to keep track of investments and to record some expenses for income tax preparation. I download transactions, but enter passwords manually.
Lar
Lar
- Sat Apr 16, 2011 12:22 am
- Forum: Personal Investments
- Topic: Anyone shortening their bond duration?
- Replies: 51
- Views: 7418
Yes (Technically)
My duration is constantly shortening due to contributions going to the TSP-G, but I still get benefits of intermediate term yields. Exchanging small $$ of Total Bond for Short Trm Investment Grade also shortened a little, but that move was to reduce exposure to treasuries/agencies.
Lar
Lar
- Wed Apr 13, 2011 7:30 pm
- Forum: Personal Investments
- Topic: Dodge and Cox Funds
- Replies: 17
- Views: 4404
Manager Diversification
I continue to use D&C for manager diversification and D&C has 5% of myportfolio. More than losing its way, I would say D&C fell into a value trap - financial stocks looked good on valuations but in reality some were in death throes. Some of the VG funds have lost their way at times- Windsor II same as D&C and earlier bond funds overweight in Enron and others leading up to bankruptcies of that era.
I've been selling D&C International in taxable and buying Global in Roth IRA. Holding Balanced due to unrealized gains; not currently adding to Income or Stock fund in IRA.
I've been selling D&C International in taxable and buying Global in Roth IRA. Holding Balanced due to unrealized gains; not currently adding to Income or Stock fund in IRA.
- Wed Apr 13, 2011 7:11 pm
- Forum: Personal Investments
- Topic: Can pension be counted as part of bond allocation?
- Replies: 40
- Views: 8073
Can, But Shouldn't
My pension offsets some of my expenses. So I don't need as much investment income, 401K/IRA withdrawals or sales ofl taxable investments to cover my expenses. Problems with counting a pension (or fixed annuity) as a bond include not being able to sell pension and extreme equity allocations. If the pension is large enough, the bond equivalent may cover the entire fixed income allocation (or more) leaving one with a 100% (or even leveraged) equity portfolio.
Depending on how you handle the pension, the value doesn't go up/down with interest rate changes; depends on whether you change the discount rate and recalculate.
Lar
Depending on how you handle the pension, the value doesn't go up/down with interest rate changes; depends on whether you change the discount rate and recalculate.
Lar
- Sun Apr 10, 2011 3:20 pm
- Forum: Personal Investments
- Topic: G Fund if debt ceiling not raised
- Replies: 8
- Views: 3796
Re: Two Issues
I think there are two issues here, since the G-fund is Treasury debt: 1 - Just like other Treasuries, there is question of whether TSP would get paid for cashing securities when the debt ceiling, e.g. if government defaults. Primary concern here is what happens if one is in the distribution phase. TSP might offset distributions from the G-fund by new contributions (assuming employees are paid). Employees would get paid for sure, at least until we're actually talking about after the US has already defaulted on treasury bonds. The budget that has already been passed covers the fiscal year and there isn't a problem paying out salaries until the government literally runs out of ways to get more money through "loan sources" and the li...
- Sun Apr 10, 2011 3:05 pm
- Forum: Personal Investments
- Topic: Investment % for speculation investment
- Replies: 48
- Views: 5961
Re: 0% for You
For you and AGQ, it is none because you don't seem to know what is in AGQ. AGQ is ProShares Ultra Silver ETF. So buying AGQ is either the physical metal (less storage costs) or Silver futures (less cost of rolling over expiring futures). Within the context of the OP, I call AGQ GAMBLING rather than speculation. Apology if post seems overly harsh. Lar It's 2x daily exposure to the London spot price, so there is no physical silver there, it's long mostly over the counter derivatives. Having 2x daily price exposure does not mean that you get twice the return of silver over some longer time horizon. Many people do not understand this. If you don't know how something works, you shouldn't hold it. The silver market has been "exciting" ...
- Sun Apr 10, 2011 2:59 pm
- Forum: Personal Investments
- Topic: Bonds today, market timing
- Replies: 52
- Views: 8109
CDs
As long as you are within FDIC insurance limits, I suggest looking into CDs. CDs yield better than short term treasuries with comparable maturities.
Lar
Lar
- Sun Apr 10, 2011 2:23 pm
- Forum: Personal Investments
- Topic: Investment % for speculation investment
- Replies: 48
- Views: 5961
0% for You
For you and AGQ, it is none because you don't seem to know what is in AGQ.
AGQ is ProShares Ultra Silver ETF. So buying AGQ is either the physical metal (less storage costs) or Silver futures (less cost of rolling over expiring futures). Within the context of the OP, I call AGQ GAMBLING rather than speculation.
Apology if post seems overly harsh.
Lar
AGQ is ProShares Ultra Silver ETF. So buying AGQ is either the physical metal (less storage costs) or Silver futures (less cost of rolling over expiring futures). Within the context of the OP, I call AGQ GAMBLING rather than speculation.
Apology if post seems overly harsh.
Lar
- Sun Apr 10, 2011 2:07 pm
- Forum: Personal Investments
- Topic: Help with Desired Vanguard and TSP AA
- Replies: 37
- Views: 5202
Income Limits
Your TSP contributions are before tax, and will decrease your earned income, e.g. W-2 income. Be sure to take that into account when figuring the limit on your IRA contributions, otherwise you may end up with excess contributions.
Concerning TSP-G, I use L Income and L-2020 for part of my TSP-G exposure. The longer dated L-funds have too much in the F-fund for me to use for G-fund exposure.
Lar
Concerning TSP-G, I use L Income and L-2020 for part of my TSP-G exposure. The longer dated L-funds have too much in the F-fund for me to use for G-fund exposure.
Lar
- Sun Apr 10, 2011 1:49 pm
- Forum: Personal Investments
- Topic: G Fund if debt ceiling not raised
- Replies: 8
- Views: 3796
Two Issues
I think there are two issues here, since the G-fund is Treasury debt: 1 - Just like other Treasuries, there is question of whether TSP would get paid for cashing securities when the debt ceiling, e.g. if government defaults. Primary concern here is what happens if one is in the distribution phase. TSP might offset distributions from the G-fund by new contributions (assuming employees are paid). 2 - Treasury yields may take off due to debtors expecting more in return for buying treasuries or even a credit down grade. Market price of treasuries will drop accordingly. On the surface, G-fund would benefit from increased rates but not drop in market value. I can not, however, fathom all the indirect effects to the G-fund if the government doesn'...
- Sun Apr 10, 2011 1:32 pm
- Forum: Personal Investments
- Topic: HSA - Use or Let Grow?
- Replies: 32
- Views: 5595
Qualified Expenses
I have an FSA, rather than an HSA, so perhaps the rules are different. Insurance premiums can't be paid from the FSA. Long-term care (elder care) expense would be reimbursable only if the expense qualifies as a medical expense. Filing deadlines wee plan spoecific.
Lar
Lar
- Thu Apr 07, 2011 9:13 pm
- Forum: Personal Investments
- Topic: Want Smart Asset Allocation for Retirement
- Replies: 21
- Views: 4719
TSP G
Increased bond recommendations hit the bulls-eye for all weather. I'll be more specific and say bonds need to be heavy on TSP G for inflation protection and stability. A bond index or the F-fund value will drop when interest rates rise.
REIT and EM look a little high to me for an all weather allocation, but that is partly personal preference.
Lar
REIT and EM look a little high to me for an all weather allocation, but that is partly personal preference.
Lar
- Thu Apr 07, 2011 6:41 pm
- Forum: Personal Investments
- Topic: TSP - Investing During Governemnt Shutdown
- Replies: 8
- Views: 1593
TSP - Investing During Governemnt Shutdown
I was thinking how to continue adding to investments through a government shutdown if it lasts past my next pay date and was wondering what others had planned.
Tentative plan is to at least add to equity funds through IRA or taxable accounts. Probably hold off on fixed income and direct TSP into G fund.
Lar
Tentative plan is to at least add to equity funds through IRA or taxable accounts. Probably hold off on fixed income and direct TSP into G fund.
Lar
- Tue Apr 05, 2011 7:51 pm
- Forum: Personal Investments
- Topic: Individual 401K help!
- Replies: 5
- Views: 1140
Earned Income
motek - I think 401K contributions, like IRA contributions, are limited to earned income. Because 401K contributions are not included in taxable income, I doubt one could contribute to both an IRA and 401K based on the same income, e.g. earned income of $5,000 and contribute $5,000 to a 401K and also contribute $5,000 to an IRA.
Lar
Lar
- Sun Mar 27, 2011 8:12 pm
- Forum: Personal Investments
- Topic: Projected 46% Retirement Tax Bracket - Ideas?
- Replies: 8
- Views: 2055
Thanks
Thanks for the responses. Rather than just draw-down IRAs, the idea is to convert to Roth (to top of 25% tax bracket), so withdrawals in future years won't be included in income.
I liked the example table in the Wiki, so I can set that up with projected income.
Lar
I liked the example table in the Wiki, so I can set that up with projected income.
Lar
- Sat Mar 26, 2011 3:37 pm
- Forum: Personal Investments
- Topic: Projected 46% Retirement Tax Bracket - Ideas?
- Replies: 8
- Views: 2055
Projected 46% Retirement Tax Bracket - Ideas?
I ran income tax projections for retirement (approximately 10 years away). With military and civil service pensions, we'll be in 25% bracket and well beyond point where 85% of social security is taxable. After I pass away, reduced survivor benefits/pension and single status puts wife's income in phase in for 85% of social security being taxable and an effective marginal tax rate of 46%. (1+0.85) x 0.25 = 0.46 25 The only strategy I can think of to address is this is to delay receipt of social security and convert traditional IRAs and TSP to Roth to the top of 25% bracket. While increased social security benefits reduce the risk of my wife running out of money, increased benefit offset over half of the effect from IRA/TSP conversions. Other ...
- Sun Mar 13, 2011 5:01 pm
- Forum: Personal Investments
- Topic: Anyone understand the .5% front-end fee on Vanguard's VEIEX?
- Replies: 15
- Views: 1998
Offset Costs
When you purchase mutual fund shares, the fund has costs to purchase stocks for the fund's portfolio (assuming fund stays fully invested). My understanding of the purchase fee is that it offsets those costs and keeps the NAV from going down, in addition to discouraging market timers.
Lar
Lar
- Thu Mar 10, 2011 6:09 pm
- Forum: Personal Investments
- Topic: THrift Savings Plan for Federal Employees
- Replies: 10
- Views: 3535
G Fund
You can't find a bond fund like the G fund anywhere else.
Lar
Lar
- Wed Feb 23, 2011 6:09 pm
- Forum: Personal Investments
- Topic: Fund Choice Dividend Growth and Equity Income
- Replies: 2
- Views: 895
Fund Choice Dividend Growth and Equity Income
I established position in Dividend Growth in Mar 2009 (offsetting Fido Div Growth sale) and Aug/Sep 2010 (taxable) and otherwise made a few small additions. Now I'm thinking maybe Equity Income with would be better in the IRA due to higher yield, smaller market cap, better long term performance and possibly less rigid strategy.
Would like opinion/input from others. BTW - Equity portion of Wellington in IRA is double the total for Dividend Growth.
Lar
Would like opinion/input from others. BTW - Equity portion of Wellington in IRA is double the total for Dividend Growth.
Lar
- Sat Jan 01, 2011 11:44 am
- Forum: Personal Investments
- Topic: TIPS
- Replies: 31
- Views: 4099
TSP G
Rosebud - Thanks for the report reference and excerpts. So other than depressed yields due to flight to quality, TSP G should protect against inflation. I'm in TSP G more to protect principal, but inflation protection is a big plus.
Lar
Lar
- Fri Dec 31, 2010 10:12 pm
- Forum: Personal Investments
- Topic: TIPS
- Replies: 31
- Views: 4099
TSP G
None in TIPS funds. Just some I-bonds and positions 2016/17 TIPS (bought at auction) too small to sell.
I also have TSP G fund, and need to take a closer look at TSP G in relation to inflation protection. Would appreciate it if Gordon or someone could point me to a good thread(s) on the subject.
Lar
I also have TSP G fund, and need to take a closer look at TSP G in relation to inflation protection. Would appreciate it if Gordon or someone could point me to a good thread(s) on the subject.
Lar
- Sun Dec 12, 2010 11:31 am
- Forum: Personal Investments
- Topic: Bond Funds
- Replies: 33
- Views: 5608
CDs
You might shop around and move some of your bond funds to CDs. CDs will give stated interest plus amount invested. CDs will give interest plus principal, unlike bond funds. Make sure you have enough liquidity to meet needs and to rebalance to maintain AA.
Lar
Lar
- Wed Nov 24, 2010 6:20 pm
- Forum: Personal Investments
- Topic: Rollover into TSP
- Replies: 25
- Views: 9736
Time Lag
Since you are concerned with being out of the market, you look at doing 2-3 smaller rollovers. If you are mainly concerned with being in equities, rollover from bond funds. Once funds are in TSP, make simultaneous exchanges to move equity exposure into TSP. Then, rollover the next chunk.
One complication of rollover into TSP is that TSP doesn't accept any funds that are not tax deferred. So if you've ever made non-deductible contributions to your T-IRA that will complicate (or maybe prevent) the rollover.
Lar
One complication of rollover into TSP is that TSP doesn't accept any funds that are not tax deferred. So if you've ever made non-deductible contributions to your T-IRA that will complicate (or maybe prevent) the rollover.
Lar
- Sat Nov 06, 2010 6:31 am
- Forum: Personal Investments
- Topic: Federal TSP and "F" Fund
- Replies: 72
- Views: 12333
L2020 G Allocation Shift
You might also factor in that the allocation of the L2020 fund will shift towards the current allocation of L2010 over the next decade. I've always assumed the allocation shifts gradually, but haven't been in the TSP long enough to really know.
Lar
Lar
- Sat Oct 30, 2010 12:31 pm
- Forum: Personal Investments
- Topic: So How Does Your 401k Stack Up?
- Replies: 66
- Views: 8532
Individual Ranking
The plan performance half of the ratings (participation rates, salary deferrals and account balances) are meaningless on the individual level.
I also note that TSP gets average for investment menu quality,while Exxon-Mobil gets great. I read somewhere that Exxon-Mobil's choices are all index funds, except for company stock. Maybe Brightscope is ranking by past performance of company stock.
Lar
I also note that TSP gets average for investment menu quality,while Exxon-Mobil gets great. I read somewhere that Exxon-Mobil's choices are all index funds, except for company stock. Maybe Brightscope is ranking by past performance of company stock.
Lar
- Tue Oct 12, 2010 8:14 pm
- Forum: Personal Investments
- Topic: Vanguard Star Fund & Wellesley
- Replies: 13
- Views: 6144
Wellesley and Wellington
Wellesley and Wellington are both fine funds and I own both. Wellesley's larger allocation to bonds is the primary reason Wellesley's historical returns are betters than Wellington's. But if (or when) interest rates head up, that is likely to change, assuming higher interest rates are not accompanied by an equity melt-down.
Lar
Lar
- Tue Oct 12, 2010 7:57 pm
- Forum: Personal Investments
- Topic: I need help for a $700,000 portfolio
- Replies: 30
- Views: 6584
Sae Withdrwal Rate SWR
Like the other posts, I doubt it will be possible to get a 7% in low or even moderate risk investments. Real returns may, or may not, be better or worse than in the past. Currently, a big difference is that inflation is low. So instead of losing purchasing power to inflation, purchasing power is lost by dipping into the invested principal.
You might do some reading on safe withdrawal rates. On this forum, 3-4% initial withdrawal rate with adjustments for inflation is generally considered safe and the probability of depleting investments within 30 years is low (based on historical returns and a reasonable portfolio).
Lar
You might do some reading on safe withdrawal rates. On this forum, 3-4% initial withdrawal rate with adjustments for inflation is generally considered safe and the probability of depleting investments within 30 years is low (based on historical returns and a reasonable portfolio).
Lar
- Sun Oct 10, 2010 5:27 pm
- Forum: Personal Investments
- Topic: Taxable accounts: Muni funds
- Replies: 22
- Views: 3675
Cash in Tax Advantaged?
If holding cash in tax advantaged with plan of rebalancing, it would be prudent to factor in possibility of market decline when cash is needed. So if 40-50% drop in equities would leave one with insufficient taxable investments, then it is not a good plan.
Lar
Lar
- Wed Oct 06, 2010 5:26 pm
- Forum: Personal Investments
- Topic: Conversion from Investor Shares to Admiral Shares
- Replies: 51
- Views: 20623
Lower Admiral Thresholds for 10 Year Accounts
Did VG lower the Admiral threshold for accounts (active funds) over 10 years old?
- Tue Oct 05, 2010 7:33 pm
- Forum: Personal Investments
- Topic: Pre-Recession US Aggregate Bond Index/VBMFX Composition
- Replies: 0
- Views: 457
Pre-Recession US Aggregate Bond Index/VBMFX Composition
I'm considering exchanging Total Bond Index for Intermediate/Short TermCorp Funds to reduce Treasuries/Agencies to pre-Great Recession levels. If someone has pre-Great Recession composition, or can point me to a source, for the (then Lehman Brothers) US Aggregate Bond Index or VBMFX composition it will be appreciated.
A related question, is there a significant difference between the Barclays US Aggregate Bond Index (index for TSP F fund) and the Barclays US Aggregate Bond Index Float Adjusted (index for Total Bond).
Lar
A related question, is there a significant difference between the Barclays US Aggregate Bond Index (index for TSP F fund) and the Barclays US Aggregate Bond Index Float Adjusted (index for Total Bond).
Lar
- Fri Aug 20, 2010 5:09 pm
- Forum: Personal Finance (Not Investing)
- Topic: Hope Tax Credit for 2011
- Replies: 2
- Views: 1093
Hope Tax Credit for 2011
I claimed the American Opportunity Tax Credit (aka modified Hope Credit?) on 2009 tax return and will claim again on 2010 return for my oldest daughter. If Hope credit is not change for 2011return does that mean I won't be able to take the Hope Credit (American Opportunity Credit = Hope Credit for 2year limit).
Note: She will still be a sophomore for Spring term, so I'm OK on not completing 2 years of college criteria.
Lar
Note: She will still be a sophomore for Spring term, so I'm OK on not completing 2 years of college criteria.
Lar
- Sat Apr 24, 2010 7:28 pm
- Forum: Personal Finance (Not Investing)
- Topic: 529 Contributions - Beneficiary Age Limit
- Replies: 2
- Views: 868
529 Contributions - Beneficiary Age Limit
Is there a limit on how old the beneficiary can be when 529 plan contributions are made?
Lar
Lar
- Fri Nov 27, 2009 10:35 pm
- Forum: Personal Investments
- Topic: Savings Bond Interest Exclusion & ESA/529 Plan Contribut
- Replies: 0
- Views: 515
Savings Bond Interest Exclusion & ESA/529 Plan Contribut
I'm confused about the Savings Bond Interest Exclusion, and Coverdell ESA and QTP (529 Plan) contributions and rollovers. I've recently read that SB proceeds can be rolled over to to an ESA or QTP (529) within 30/60 days and have to provide documentation showing interest (presumably for establishing the basis). I've also found a Form 5498-ESA and instructions; seems to be a requirement for the institution for ESA or 529 Plan. However, instructions for the Form 8815 (both 2008 and 2009), line 1state to enter Coverdell ESA or QTP and the institution name/address in column a and contribution amount in column b. Other than the $2,000 limitation on ESA contributions, I don't see any reason or advantage for using a rollover instead of contributio...
- Sun Nov 22, 2009 6:42 pm
- Forum: Personal Investments
- Topic: Gold
- Replies: 92
- Views: 14917
Why?
You never said why you want to buy gold? Or was your question whether to buy in taxable of tax deferred.
For protection US dollar decline, I've started buying int'l bonds (TRP Int'l Bond). Although held to protect against inflation, VG Energy, TIPs, and I-Bonds may also provide some protection against dollar decline.
Lar
For protection US dollar decline, I've started buying int'l bonds (TRP Int'l Bond). Although held to protect against inflation, VG Energy, TIPs, and I-Bonds may also provide some protection against dollar decline.
Lar
- Sun Nov 22, 2009 6:25 pm
- Forum: Personal Investments
- Topic: Which target-date family do you prefer?
- Replies: 13
- Views: 3420
TSP
TSP Target Retire for lowest cost and because 2/3+ of my retirement savings are going into TSP. Minor drawback is having to get Emerging Market exposure elsewhere. But my second choice is VG.
Lar
Lar
- Sat Oct 31, 2009 12:32 am
- Forum: Personal Investments
- Topic: College Savings ESA vs 529
- Replies: 22
- Views: 6229
MD Prepaid Plan
Checking the MD web site, their pre-paid plan has a "legislative guarantee" and can be used at out of state/private universities up to some type of weighted average tuition and for non-tuition costs if your son/daughter gets schlolarship/grant. If my state (soon to be Ohio), I would give it a closer look.
I started using the Ohio's 529 CD option as there are no fees. The CDs count as fixed income (bond equivalent), and match maturity to university costs.
Lar
I started using the Ohio's 529 CD option as there are no fees. The CDs count as fixed income (bond equivalent), and match maturity to university costs.
Lar
- Sat Oct 31, 2009 12:16 am
- Forum: Personal Investments
- Topic: CDs, IRAs and fees or charges
- Replies: 9
- Views: 1645
1.5%
$75 per year on $5,000 is 1.5%. If the bank won't waive the fees over the life of the CD in writing, I would look at taking the penalty and undoing the IRA contribution.
PenFed Credit Union wasn't too good on my wife's IRA CD. Wee had a contribution/CD recharacterized from a Roth to a traditional IRA. Without informing us, they broke the CD and reissued it as a new CD at a lower rate. Then they claimed it was an IRS requirement that a new CD be issued. That was a bunch of B.S., I made sure they knew and that they don't meet my needs. I'm not putting any new money with PenFed.
Lar
PenFed Credit Union wasn't too good on my wife's IRA CD. Wee had a contribution/CD recharacterized from a Roth to a traditional IRA. Without informing us, they broke the CD and reissued it as a new CD at a lower rate. Then they claimed it was an IRS requirement that a new CD be issued. That was a bunch of B.S., I made sure they knew and that they don't meet my needs. I'm not putting any new money with PenFed.
Lar
- Sun Oct 25, 2009 5:10 pm
- Forum: Personal Investments
- Topic: Emergency fund: start a CD-ladder 2%-4% or tax-exempt bonds?
- Replies: 15
- Views: 3777
Yield to Maturity
You must be looking at Long Term TE's 3.6% YTM. VG shows Short Term and Limit Term TE as having YTM 1.0% and 1.6%, respectively. I think the 5.5 year duration for IT TE is too long for emergency funds. Would you buy a 5 yr CD for emergency funds?
Lar
Lar
- Sat Oct 24, 2009 9:37 pm
- Forum: Personal Investments
- Topic: "Replicating" TBM/TSP F with TSP G & Investmen
- Replies: 3
- Views: 1273
"Replicating" TBM/TSP F with TSP G & Investmen
With higher interest rates expected, I'm looking at shortening the duration of the bond funds in my retirement accounts. I have TBM in an IRA account. For historical and AA reasons, I have a small holding in the TSP F fund. The objective is to shorten the duration while maintain a similar overall composition by exchanging TBM for VG Investment Grade bond (use VFCIX?) in the IRA and TSP F for TSP G in my Thrift Saving Plan account. The question is how to weight TSP G and VFCIX when I make the move. Balancing YTM, I get 54%-81% TSP depending on use of current 3.2% G yield or 2.4% IT Treasury YTM*. TBM is listed as 35% treasury/agency and 38% gov't backed mortgage, from which 35% - 73% TSP G might be justified. Suggestions/comments on how to w...
- Sat Oct 24, 2009 6:33 pm
- Forum: Personal Investments
- Topic: Does this portfolio make sense for a 78 year old widow?
- Replies: 31
- Views: 5471
4% SWR
I have understood the 4% SWR as the starting rate withdrawal rate for a portfolio to have a high probability of lasting 30 years; e.g. 15 years ago for your grandmother. The withdrawal rate is increased every year for inflation, actual withdrawal rate increases over time.
I honestly don't understand the difference between eating into principal when inflation and interest rates are low as compared loosing purchasing power to inflation (and taxes) when rates and inflation are high. Either way, real value decreases over time.
Lar
I honestly don't understand the difference between eating into principal when inflation and interest rates are low as compared loosing purchasing power to inflation (and taxes) when rates and inflation are high. Either way, real value decreases over time.
Lar