Search found 4600 matches

by john94549
Sat Mar 12, 2016 5:32 am
Forum: Personal Finance (Not Investing)
Topic: Why is Ally.com only paying 1% after interest rates went up?
Replies: 16
Views: 3371

Re: Why is Ally.com only paying 1% after interest rates went up?

Nisiprius, capital will flow to venues where it is most efficient (or so I was taught).
by john94549
Sat Mar 12, 2016 5:13 am
Forum: Personal Finance (Not Investing)
Topic: Why is Ally.com only paying 1% after interest rates went up?
Replies: 16
Views: 3371

Re: Why is Ally.com only paying 1% after interest rates went up?

One percent seems to be the "going rate" for high-yield savings accounts these days. Look at the bright side. At least they're not charging you negative interest.

Optimist that I am, I am a firm believer in reversion to the mean.
by john94549
Sat Mar 12, 2016 4:22 am
Forum: Personal Investments
Topic: Don't Peek
Replies: 33
Views: 5849

Don't Peek

We've all read the advice, over and over. Stay the course, and don't peek. Well, might I say, it does make some sense.

It's not as scary this year as I thought.

My personal results (end-of-year to date):

VBIAX: +0.14%
VEMAX: +1.68%
VTIAX: -1.24%
VTSAX: -1.06%

Overall: -0.82%

Could have been better, but could have been worse.

Mea culpa, I just had to peek.

PS: Before you ask, my fixed-income is elsewhere. The allocation in my Vanguard account (aside from VBIAX) is basically 100% equities.
by john94549
Fri Mar 11, 2016 10:18 pm
Forum: Investing - Theory, News & General
Topic: "Monitor Your Portfolio Once This Year, Then Ignore It"
Replies: 53
Views: 9879

Re: "Monitor Your Portfolio Once This Year, Then Ignore It"

It's hard to obey the concept of "don't peek". We all peek. That said, "peek but don't touch" is another issue. My wife loves to peek at her 401k balance, the assessed value of our Maui condo, and Zillow's assumed value of our house in Lafayette. There is a certain voyeuristic nature in our relationship with "value" and "worth".

As Wm. Bernstein noted, time and time again, once you have won the game, stop playing. All else is but keeping score.
by john94549
Fri Mar 11, 2016 9:50 pm
Forum: Personal Investments
Topic: Computershare
Replies: 20
Views: 7979

Re: Computershare

It would appear (a) the sale price on my "batch" of a modest 20 shares was determined on the date I placed the order; (b) the fee was modest; and (c) the check was cut on the date of settlement. All-in-all, no complaints.
by john94549
Fri Mar 11, 2016 11:41 am
Forum: Personal Consumer Issues
Topic: Concierge medicine Worth It????
Replies: 317
Views: 46608

Re: Concierge medicine Worth It????

dm200, I don't know whether my wife's PCP has any other patients "outside" MDVIP. He assures her he will take her Medicare, when she transitions into it, as a MDVIP patient. I suspect the MDVIP annual fee offsets his angst. Finally, MDVIP has physicians all over the Bay Area. In a pinch, she has been assured that a local MDVIP physician-participant can assist her (i.e., she wouldn't have to drive all the way to Palo Alto from Lafayette).

Her "circle" of physicians has always been in Palo Alto, even though we moved to Lafayette in 1978.

PS: the MDVIP fee is per year, not per month. I think my wife pays $2000/yr, or thereabouts.
by john94549
Fri Mar 11, 2016 8:56 am
Forum: Personal Consumer Issues
Topic: Concierge medicine Worth It????
Replies: 317
Views: 46608

Re: Concierge medicine Worth It????

My wife is with MDVIP and loves it (feel free to PM). My wife and I are 68, pushing 69. I am already signed up with Kaiser Senior Advantage (I really like Kaiser). My wife is still working and under her employer-provided insurance. However, as she will be retiring (eventually), she looked around for a PCP and found none to her liking willing to accept new Medicare patients. On a recommendation from her current PCP (who is retiring), she connected with MDVIP. Her new PCP with MDVIP will take her Medicare (when she transitions), and she really likes him. I have posted on another thread the "extras" he and his nurse have already provided, at no additional charge above the concierge fee. Funny story: I was at Kaiser last week, and cha...
by john94549
Thu Mar 10, 2016 7:59 am
Forum: Personal Investments
Topic: Investment advice for a Retiree
Replies: 14
Views: 2424

Re: Investment advice for a Retiree

Just thinking about that 220k in cash and the $98 a week that its making! In this fixed-income environment, 2.3% is quite competitive. I would think long and hard before swapping for a bond fund (as in, I wouldn't). So long as you stay in the 401K, you can keep the SVF. One option you might explore: maintain the 401K "solely" for the purpose of keeping that SVF. Then, if possible, consider rolling the equities and bond fund in your 401K to an IRA, where your investing options and expense ratios might be better. I don't know if this is possible, but it might be worth a phone call to your 401K plan admin. Here's a good article by Boglehead contributor Mike Piper: http://www.obliviousinvestor.com/can-i-do-a-partial-401k-rollover/
by john94549
Wed Mar 09, 2016 11:33 am
Forum: Personal Finance (Not Investing)
Topic: FICO Score??
Replies: 69
Views: 9688

Re: FICO Score??

OP, as noted in my post above, I suspect you need to apply for a "secured" credit card. While my experience was decades ago, as they say, "worked for me".
by john94549
Mon Mar 07, 2016 7:00 am
Forum: Personal Finance (Not Investing)
Topic: FICO Score??
Replies: 69
Views: 9688

Re: FICO Score??

After my discharge from active duty (Navy), in 1973, my wife and were able to buy a house ONLY because her parents co-signed. Our banker "schooled" us on credit scores. In addition to paying off the mortgage timely (which we did), he suggested obtaining a "secured" credit card. You "pledge" a certain amount of your savings account, and you are issued a credit card with a credit limit in the same amount. Use it, pay it off each month, and within a few months you should be able to obtain an "unsecured" credit card. Or two. Use them, pay them off each month.

Bankers are fairly savvy on credit, credit scores, and the like. I suggest you chat with yours. Lay out your plan, and ask for advice.
by john94549
Thu Mar 03, 2016 11:38 am
Forum: Personal Investments
Topic: Computershare
Replies: 20
Views: 7979

Re: Computershare

It will be interesting to see what, if anything, CS charges (as in a processing fee) for my modest transaction. Update: I found the fee. It's only $15 plus $0.12/share for a "batch sale". Apparently, fees vary with the plan(s), as others have noted.

The "Ask Penny" function was helpful.
by john94549
Wed Mar 02, 2016 11:17 pm
Forum: Personal Investments
Topic: Where to park emergency fund?
Replies: 17
Views: 2533

Re: Where to park emergency fund?

holley54 wrote:Thanks for the suggestions, y'all. Are these "online banks" safe? Are they FDIC insured like regular banks?


Banks and credit unions should be FDIC or NCUA-insured. I seem to recall that some state-chartered credit unions have private insurance, but most are NCUA-insured.
by john94549
Wed Mar 02, 2016 10:49 pm
Forum: Personal Investments
Topic: Computershare
Replies: 20
Views: 7979

Re: Computershare

Mind you, the twenty shares of SWK I sold will neither make nor break my retirement. Regrettably, the "batch" sold on a down day. That said, the good news is: if you're selling just 20 shares, a drop in price of $1 just results in ($20).
by john94549
Wed Mar 02, 2016 9:58 pm
Forum: Personal Investments
Topic: Computershare
Replies: 20
Views: 7979

Re: Computershare

Wow, that was fast. I e-mailed Schwab and got a person on line to answer my query. Schwab has all the forms for you to fill out. Once done, and the Medallion Signature Guarantee executed, the equities are transferred. I'm impressed.

Not that I have a big gripe with Computershare. Charging me three bucks and change was not exactly retirement-threatening. It was just the principle of the thing. Charging $3.06 on a re-investment of $73 is a bit rich.
by john94549
Wed Mar 02, 2016 8:55 pm
Forum: Personal Investments
Topic: Anybody using Andrews CU 3% IRA CD?
Replies: 39
Views: 7952

Re: Anybody using Andrews CU 3% IRA CD?

Kevin M wrote:
For me it's more about getting lazier than getting more conservative as I approach the RMD phase of life.
My wife contends I am getting both lazier and more conservative as I age.
by john94549
Wed Mar 02, 2016 6:04 pm
Forum: Personal Investments
Topic: Computershare
Replies: 20
Views: 7979

Re: Computershare

Don't see why not. This is some stock my wife has had since the 70s. Computershare was the latest in a series of transfer agents. Before finding the BH site, we hadn't given it a thought. But when I noticed a $112 quarterly dividend incurs a $5 fee plus a per share fee for the DR, a light went on. :idea: I opened the VG account, and indicated it would be funded by a stock transfer. Then arranged from the Computershare website to transfer in to the VG account. Being stock, the form required a medallion signature, which she got free at our CU. Easy peasy. I would hate to think of how many shares we lost over the years paying these fees. Not that there were alternatives decades ago! I just e-mailed Schwab. I used the prompt "transfer mon...
by john94549
Wed Mar 02, 2016 5:31 pm
Forum: Personal Investments
Topic: Computershare
Replies: 20
Views: 7979

Re: Computershare

I looked up the DRIP fees I am being charged. They are somewhat north of excessive.

Which leads me to the following question: Is it possible to transfer the holdings to another brokerage? The account has been managed through Computershare for as long as I can recall. I don't particularly want to sell the equities, as I don't want to realize the capital gains.

Should I just call Schwab?
by john94549
Wed Mar 02, 2016 4:58 pm
Forum: Personal Investments
Topic: Anybody using Andrews CU 3% IRA CD?
Replies: 39
Views: 7952

Re: Anybody using Andrews CU 3% IRA CD?

Kevin, I have two sevens (with PenFed, purchased in 2010) at 3.5%. Was it a fortuitous investment, or just dumb luck? The interest-rate environment we face today is so much different than it was a decade ago. Will CD rates "normalize" over the next five years or will they stagnate? Seriously, I can remember posts (I believe it was at Bankrate) from mid-Summer of 2006 advising against the 5.9% USAA CD, as 6%+ was on the horizon. Contrarian that I was, I bought the 5.9% 5-yr CD on August 31, 2006. When it rolled, in 2011, the rate was 2.3% The best rate offered by USAA these days is 1.1%. I suspect I will move the CD before it rolls into 1.1%. Perhaps I am getting more conservative as I approach the RMD phase of life. I think now mo...
by john94549
Wed Mar 02, 2016 2:31 pm
Forum: Personal Investments
Topic: Strategy for Investing Inheritant Money
Replies: 15
Views: 3050

Re: Strategy for Investing Inheritant Money

You can basically ignore taxes, if an American resident. The step-up in basis wipes the slate clean. If the portfolio has increased in value since the date of death, you will owe long-term capital gains tax on the increase. If a California resident, ordinary income tax rates apply.

As for investing, 60/40 is about as good as it gets. Cash out the inheritance, open an account at the brokerage of your choosing, and buy VBIAX. Come back in 30 or 40 years.
by john94549
Wed Mar 02, 2016 1:44 pm
Forum: Personal Investments
Topic: Anybody using Andrews CU 3% IRA CD?
Replies: 39
Views: 7952

Re: Anybody using Andrews CU 3% IRA CD?

I get more than a bit "nervous and jerky" when a prospective IRA CD custodian won't rate-lock. And I still feel five years is about as long as I want to go out in my ladder.

FWIW, I have two IRA CDs maturing this year. One is with Alliant, and I'll probably just roll it into their 5-yr at 2.2%. The other is with USAA, where rates are somewhat below competitive, to put it kindly. I'll probably move that IRA CD to Patelco, assuming their 2.5% rate holds.

If all else fails, I'll plop it all with StateFarmBank at 2.2%.
by john94549
Wed Mar 02, 2016 1:07 pm
Forum: Personal Investments
Topic: Where to park emergency fund?
Replies: 17
Views: 2533

Re: Where to park emergency fund?

I have found Alliant credit union an excellent choice. Their savings account yields 1% (not the best, but certainly not the worst). Their website is incredibly user-friendly. The call center answers the phone on the first ring. You can move money from savings to checking with the click of a mouse. When I joined, the checks were free.

With any fund, emergency, ready-reserve, or whatever it might be called, the key is to make at least 1% until you need the money.
by john94549
Wed Mar 02, 2016 12:48 pm
Forum: Personal Investments
Topic: Computershare
Replies: 20
Views: 7979

Computershare

Just a heads up to anyone with equities at Computershare. I placed a "sell" order yesterday for 20 shares of StanleyBlack&Decker (SWK) online. As of today, the order was confirmed, but not reflected in my holding.

So, I called the help desk. They advised (1) the sell order was of the "batch" variety; (2) the price I would receive would be based on the value three days hence (i.e., Friday)*; and (3) limit orders were not possible.

Since many taxable equities are managed by Computershare, I thought this information might be valuable to the Boglehead community.

*I might have misunderstood this part, as it appears the sale price was assigned Wednesday.
by john94549
Wed Mar 02, 2016 2:46 am
Forum: Personal Finance (Not Investing)
Topic: Dime Savings Bank -- MMA 1.10% but never heard of them
Replies: 24
Views: 4034

Re: Dime Savings Bank -- MMA 1.10% but never heard of them

Dime is in Brooklyn*, FDIC-insured, and worthy. I actually had a CD with them some years back. They were quite responsive. Answered the phone on the first ring, confirmed a rate-lock via FAX, and were generally nice.

I'd give them 5 out of 5, as in a very favorable rating.

*Williamsburg, to be exact.
by john94549
Wed Mar 02, 2016 2:25 am
Forum: Personal Finance (Not Investing)
Topic: Is it risky to have all your money in one place?
Replies: 19
Views: 2608

Re: Is it risky to have all your money in one place?

OP: if your wife is all that nervous and jerky, plop it all in a 5-yr CD. You can maintain FDIC or NCUA limits by styling the CD :"me" ($250K), "her" ($250k) , and "me and her" (the balance).
by john94549
Wed Mar 02, 2016 1:19 am
Forum: Investing - Theory, News & General
Topic: rental income investing
Replies: 50
Views: 7144

Re: rental income investing

Privatefarmer, it really depends on your MAGI. Ironically enough, folks with lower income (or folks drawing Social Security) benefit more than others. Example: retired folks drawing Social Security are exempt from the MAGI calculation, to the extent of their Social Security payments. In order to get to $150,000 MAGI (or below), as a retiree, you really need a fairly robust income stream above and beyond Social Security. Accordingly, Form 8582's benefits are most beneficial to retirees whose MAGI are at or below $150,000. The MAGI of $100,000 affords the maximum "negative", $25,000. Mind you, the tax benefit of Form 8582 goes "poof" if you sell. Depreciation is recaptured at 25%. Leave the property to the kids. The step-u...
by john94549
Tue Mar 01, 2016 5:46 pm
Forum: Investing - Theory, News & General
Topic: rental income investing
Replies: 50
Views: 7144

Re: rental income investing

Rentals can offer substantial returns, and tax breaks as well. I have posted on this over, and over. Our Maui condo generates positive cash-flow. Thanks to depreciation, it also generates a "negative" on Schedule E. As we keep our Form 8582 MAGI as close as possible to $100,000, we are able to maximize our "negative" on line 17, Form 1040. Some of these benefits will be clawed back as depreciation recapture (however, don't know what happens to this if you leave the property to your heirs). With the step-up in basis, depreciation recapture is eliminated. It's an odd wrinkle in the tax code*. Retirees can take the benefit of depreciation on Form 8582 (including depreciation). Then, if they leave the rental to heirs, the t...
by john94549
Tue Mar 01, 2016 4:17 pm
Forum: Investing - Theory, News & General
Topic: rental income investing
Replies: 50
Views: 7144

Re: rental income investing

Rentals can offer substantial returns, and tax breaks as well. I have posted on this over, and over. Our Maui condo generates positive cash-flow. Thanks to depreciation, it also generates a "negative" on Schedule E. As we keep our Form 8582 MAGI as close as possible to $100,000, we are able to maximize our "negative" on line 17, Form 1040.
by john94549
Tue Mar 01, 2016 3:33 pm
Forum: Personal Investments
Topic: Real Estate in my Portfolio. Please Help!
Replies: 26
Views: 1931

Re: Real Estate in my Portfolio. Please Help!

WhyNotUs, "military rentals" are about as good as it gets. One has a stable tenancy with a guaranteed income stream. When a tenant is transferred, another moves in. Your vacancy rate is close to zero and delinquency rate close thereto*. Absent a major base closure, renting to folks in the military is sweet X 2.

*Folks in the military tend not to stiff their landlords.
by john94549
Tue Mar 01, 2016 3:03 pm
Forum: Personal Investments
Topic: Real Estate in my Portfolio. Please Help!
Replies: 26
Views: 1931

Re: Real Estate in my Portfolio. Please Help!

Rental real estate can yield substantial tax breaks. I have posted on this issue on other threads. Folks with Modified Adjusted Gross Income (MAGI for short) of $150,000 or less are entitled to enter 50% of losses (paper or otherwise) on line 17, Form 1040. When determining "loss" on Schedule E, depreciation is often the largest factor. And the best thing: you can book those losses forever. Even if you're currently earning well above the $150,000 threshold, you can come back in retirement and claim the losses. An added plus: Social Security payments don't count when adding up your MAGI. Moving right along (an old Navy expression), there is the issue of re-capture. Depreciation, whether taken or not on Schedule E, is re-captured at...
by john94549
Tue Mar 01, 2016 1:56 pm
Forum: Personal Investments
Topic: Why invest in Bonds in this environment
Replies: 21
Views: 4115

Re: Why invest in Bonds in this environment

Valuethinker wrote:
However in the 1-5 year period, ST nominal bonds or CDs probably offer similar prospective returns.
Prospective returns are all I care about. When a rung of my 5-yr CD ladder matures, I find the best 5-yr CD out there and buy it with the maturing funds.
by john94549
Tue Mar 01, 2016 11:41 am
Forum: Personal Investments
Topic: Why invest in Bonds in this environment
Replies: 21
Views: 4115

Re: Why invest in Bonds in this environment

Telemark, bond funds, savings accounts, CD ladders, they're all about "preserving" assets. For example, I don't buy a CD to "make money" (although sometimes I do); I buy a CD so I don't "lose money". Buying a 5-yr CD at or above the CPI-U is not all that hard.
by john94549
Tue Mar 01, 2016 11:21 am
Forum: Personal Consumer Issues
Topic: Is Working from Home the New Normal?
Replies: 57
Views: 8450

Re: Is Working from Home the New Normal?

carolinaman wrote: On occasion, a remote support person would not respond to calls for a period of time. Lacking a really good excuse (poor cell phone coverage on the golf course or at the spa were not acceptable excuses), their telework privilege was revoked.
Too funny. Yes, it's called "work" for a reason. My wife's cell (and her computer) both bleep at the same time. Hard to ignore, as it were.
by john94549
Tue Mar 01, 2016 10:33 am
Forum: Personal Investments
Topic: Why invest in Bonds in this environment
Replies: 21
Views: 4115

Re: Why invest in Bonds in this environment

Speaking of "either/or" propositions, it is quite possible to own both VBIAX (which is 60/40) and a ladder of retail 5-yr CDs. I know. I do. My wife's 401K is also 60/40 (60% VFIAX/40% VBTLX). The 401K does not offer VBIAX, but it does offer the funds noted.

Neither bond funds nor CD ladders are designed to make you rich. They are designed to make you "not poor." At age 68 (pushing 69), that's good enough for me. And Uncle Sam (since we start IRA RMDs* next year).

*My wife refuses to retire, just so she can avoid the RMD on her 401K.
by john94549
Tue Mar 01, 2016 4:10 am
Forum: Personal Investments
Topic: Why invest in Bonds in this environment
Replies: 21
Views: 4115

Re: Why invest in Bonds in this environment

The real alternative to bonds right now is a ladder of CDs, FDIC insured. I might quibble with the "FDIC", as NCUA-insured credit unions, by-and-large, offer better rates. But I agree with the concept of the CD ladder. I should posit, however, that bond funds are handy should one need to re-balance*. Bond funds and CD ladders are not really an "either/or" proposition. Both are reasonable fixed-income vehicles. Building a CD ladder from scratch takes a bit of patience. Ideally, in year one, buy a 5-year CD at the best rate possible. Year two, buy a 5-year CD at the best rate possible. Year three, well, you get the drift. After five years, your ladder will be filled and rolling. *Attempting to re-balance with CDs can be c...
by john94549
Mon Feb 29, 2016 11:18 pm
Forum: Personal Investments
Topic: Advice for grandmother in assisted living
Replies: 7
Views: 1337

Re: Advice for grandmother in assisted living

[quote="brettdj99"][/quote]

Regrettably, there's no silver bullet in fixed income. For short-term, 1% is about as good as it gets. For 5-year CDs, 2.2%, maybe a tad higher if you shop around. It's slim pickins out there.

Look at the bright side. We don't have "negative interest rates" yet. When a bank or credit union begins to charge me for the privilege of being a depositor, it's mattress time.
by john94549
Mon Feb 29, 2016 10:46 pm
Forum: Personal Consumer Issues
Topic: Is Working from Home the New Normal?
Replies: 57
Views: 8450

Re: Is Working from Home the New Normal?

john94549 wrote: The funniest story: one of my wife's company's Directors finally told the Board she was done with commuting. No more face time. She was moving to St. Croix. If they wanted to reach her, they could figure it out. They did.
My wife actually had a conference call with the Director in St. Croix today. They wanted to reach her, and they did. As my wife was laughing from her home office, I think the Director was on the beach, in her home office.

One of these days, we'll all retire, cash in our RMDs, and pass the baton to the next generation.
by john94549
Mon Feb 29, 2016 7:36 pm
Forum: Personal Consumer Issues
Topic: Is Working from Home the New Normal?
Replies: 57
Views: 8450

Re: Is Working from Home the New Normal?

Seriously, you look back fondly at an hour-and-a-half commute?
by john94549
Mon Feb 29, 2016 6:25 pm
Forum: Personal Consumer Issues
Topic: Is Working from Home the New Normal?
Replies: 57
Views: 8450

Re: Is Working from Home the New Normal?

Posts thus far have been interesting. I'd say the Melissa Mayer camp gets a resounding thud*. Face time is so 1990.

*I'm sure she's a nice lady, and means well. That said, requiring your workers to commute (in Silicone Valley, no less) is not nice.
by john94549
Mon Feb 29, 2016 6:04 pm
Forum: Personal Investments
Topic: Is Stable Value Fund in 401K Good Alternative to Money Market?
Replies: 14
Views: 2411

Re: Is Stable Value Fund in 401K Good Alternative to Money Market?

I convinced my wife to bail on her 401K SVF long before it was "deleted" by the plan admin. Mind you, the SVF was through Schwab, not exactly a "fly-by-night" company. Even so, when I contacted Schwab to explain what, exactly, the fund "was", it took four service reps (count 'em, four) before I could get anyone to admit he had no idea what the fund was, what it was invested in, or whether it was even solvent. Black box, indeed.
by john94549
Mon Feb 29, 2016 2:11 pm
Forum: Personal Consumer Issues
Topic: Is Working from Home the New Normal?
Replies: 57
Views: 8450

Re: Is Working from Home the New Normal?

For most folks, the main distraction is commuting. My absolutely, positively, worst commute was when I was trying a case in San Mateo county (Redwood City). I should have just booked a room at the local motel, but I assumed (wrongly) the case would settle. Three months later, I was still commuting from Lafayette to Redwood City. In order to meet the Judge's "opening moment" each day, I literally had to crawl out of bed at 4:30 AM. 4:30 => 8:30, that's a brutal commute.
by john94549
Mon Feb 29, 2016 1:45 pm
Forum: Personal Investments
Topic: Saving / Investing / Spending question for retirees or near retirees
Replies: 16
Views: 1559

Re: Saving / Investing / Spending question for retirees or near retirees

Keep that $17K in your savings account. Buy the SUV in Nevada. Register to vote in Nevada. Pay no state income tax.

Legions of Californians have "moved" to Nevada upon retirement. All that state income tax on your RMDs goes "poof".
by john94549
Mon Feb 29, 2016 1:33 pm
Forum: Personal Investments
Topic: Pessimist trying to get into Stock Investing
Replies: 35
Views: 3989

Re: Pessimist trying to get into Stock Investing

Investing is hardly an "either/or" proposition. Plopping money in a CD ladder counts. Plopping money in a 60/40 balanced fund counts. Goodness, plopping money under your mattress counts. Squirrels figured out how to save eons ago. They buried acorns. Some, they dug up, for food. Others, they let to sprout, in new oak trees. We could learn from squirrels.
by john94549
Mon Feb 29, 2016 12:59 pm
Forum: Personal Investments
Topic: Is Stable Value Fund in 401K Good Alternative to Money Market?
Replies: 14
Views: 2411

Re: Is Stable Value Fund in 401K Good Alternative to Money Market?

When comparing apples and oranges, it is helpful to check the going rate for 5-yr CDs. By-and-large, 2% is the norm. One can find outliers above that, but 2% seems a fair return.

FWIW, stable value funds are inherently opaque. Back when my wife's 401K had one, I e-mailed the originator with a very simple question: "what is this?" The response was, well, opaque.

That said, if the SVF purported to yield anything in excess of 3%, I'd get a bit nervous. At 4%, I'd get both nervous and jerky.
by john94549
Mon Feb 29, 2016 11:57 am
Forum: Personal Investments
Topic: Limit order. Does the day trading time matter?
Replies: 25
Views: 2785

Re: Limit order. Does the day trading time matter?

ogd, I suspect most Bogleheads, if they trade at all, are "infrequent" traders. The entire concept of "being a Boglehead" is opposite to the trading mind-set. That said, there are no doubt some who both invest and trade. I count myself as one.

Trading should never be confused with investing. CNBC does this all the time. Investing is something you do over a long period of time. Trading is ephemeral. If Jim Cramer went on the air each day and said "just invest in index funds", his ratings would plummet.
by john94549
Mon Feb 29, 2016 11:17 am
Forum: Investing - Theory, News & General
Topic: Losing Purchasing Power question
Replies: 16
Views: 1869

Re: Losing Purchasing Power question

sk.dolcevita wrote: This year our property tax increased by 25%. I expect a similar increase within next three years. So a paid-off mortgage doesn't let you off the hook completely.
Folks in California "solved" this problem back in 1978 with Proposition 13 (or "Prop 13" as it is called). Ironically enough, we bought our current abode in 1978, just when Prop 13 went into effect. Now, by law, our property taxes can increase only by 2%/annum.
by john94549
Mon Feb 29, 2016 4:21 am
Forum: Personal Investments
Topic: Limit order. Does the day trading time matter?
Replies: 25
Views: 2785

Re: Limit order. Does the day trading time matter?

RandomWalking, rest assured we in the Colonies are never asleep.
by john94549
Mon Feb 29, 2016 3:21 am
Forum: Investing - Theory, News & General
Topic: Losing Purchasing Power question
Replies: 16
Views: 1869

Re: Losing Purchasing Power question

It is somewhat axiomatic that if inflation is "x" and your FDIC/NCUA- guaranteed returns are less than "x", you lose.

However, it gets tricky when dealing with one's personal inflation index. For example, the CPI-U may have little correlation with one's own spending. A retiree with no mortgage could care less if rents in his or her urban area go up or down. Grandpa and Grandma are likewise neutral with respect to college tuition, as their kids graduated from college long ago. A person who eats no meat cares little that beef prices increase or decrease. I could go on.

The key to answering the question is "what are you purchasing?"
by john94549
Mon Feb 29, 2016 2:40 am
Forum: Personal Investments
Topic: Limit order. Does the day trading time matter?
Replies: 25
Views: 2785

Re: Limit order. Does the day trading time matter?

Itstoomuch, as a trader in the 12-step recovery program* (I now limit myself), I can assure you I often plopped more money (via commissions) in Mr. Schwab's bank account than he in mine. Trading is fun. Of that there is no dispute. I will always remember the "rush" driving up to Tahoe, when you finally see the casinos below. Trading is like that. Every day the market is open is like the drive to Tahoe, without the carbon footprint. I'm still waiting for the free drinks, however.

*Just kidding.
by john94549
Sun Feb 28, 2016 10:01 pm
Forum: Investing - Theory, News & General
Topic: The Vanishing DIY Annuity
Replies: 11
Views: 3215

Re: The Vanishing DIY Annuity

Again, thanks to all the math folks. It would appear twenty years is as good as it gets.