Search found 3921 matches

by drk
Wed Sep 06, 2023 12:55 pm
Forum: Personal Finance (Not Investing)
Topic: Alternatives to Chase traditional savings accounts for “Emergency Funds”
Replies: 50
Views: 4598

Re: Alternatives to Chase traditional savings accounts for “Emergency Funds”

lthenderson wrote: Wed Sep 06, 2023 8:35 am I'm sure mileages may vary but our credit cards wouldn't have a big enough limit to say buy a new car in a pinch, nor would our dealer take a credit card without charging us a percentage of the total in fees. But I could transfer money out of my savings into my checking account and write a check for a new car in a matter of minutes. I could do something similar with a money market but it might take a day or two to complete the entire transaction and it might even take longer if on a holiday weekend.
Buying a new car in an emergency, eh? If I suddenly needed a car last Friday, I would have rented one.
by drk
Tue Sep 05, 2023 3:02 pm
Forum: Investing - Theory, News & General
Topic: The Final, Definitive Thread on Brokerage Transfer Bonuses
Replies: 7770
Views: 1352085

Re: The Final, Definitive Thread on Brokerage Transfer Bonuses

whodidntante wrote: Tue Sep 05, 2023 2:11 pm I just did a targeted Chase brokerage bonus. Added 200k to an existing account for $625. Public got the bad news about my disloyalty.
How did they target you? Website, email, other?
by drk
Tue Sep 05, 2023 10:37 am
Forum: Personal Finance (Not Investing)
Topic: Alternatives to Chase traditional savings accounts for “Emergency Funds”
Replies: 50
Views: 4598

Re: Alternatives to Chase traditional savings accounts for “Emergency Funds”

AFAIK, Chase's self-directed investing platform offers Vanguard money market funds with no fees. You'll end up with the same next-day availability as at Vanguard or other brokerages, though.

Edit: If you want to read what others do, use the search functionality because this topic has been covered many times. Speaking personally, we don't keep a dedicated emergency fund in cash because of sufficient incomes, assets, and credit lines.
by drk
Tue Sep 05, 2023 10:33 am
Forum: Personal Investments
Topic: Fidelity Equivalent to Vanguard Life Strategy Funds
Replies: 6
Views: 1432

Re: Fidelity Equivalent to Vanguard Life Strategy Funds

If you'd prefer low-cost index funds, you might also consider the iShares asset allocation ETFs: https://www.ishares.com/us/products/etf ... 89%7C43619
by drk
Tue Sep 05, 2023 10:28 am
Forum: Personal Finance (Not Investing)
Topic: Sell the house and FIRE now?
Replies: 63
Views: 7437

Re: Sell the house and FIRE now?

Wanderingwheelz wrote: Mon Sep 04, 2023 11:04 am I might have it wrong, but I thought FIRE was replacing the lifestyle your family is already living, free of any earned income.
OP is currently working. Would they have to replicate the commute and Megacorp bureaucracy, too? :twisted:
by drk
Mon Sep 04, 2023 6:38 pm
Forum: Personal Investments
Topic: Torn between ETrade vs Schwab
Replies: 7
Views: 1264

Re: Torn between ETrade vs Schwab

AFAIK, Schwab has always done a hard pull for a new relationship.

I can lock my Schwab Bank debit card from the app and website. No idea why you would even want one for your brokerage account when you can enable self-funded overdraft to have checking pull from brokerage.
by drk
Mon Sep 04, 2023 12:22 pm
Forum: Investing - Theory, News & General
Topic: What Fraction of Retirement Assets in TIPS Ladder?
Replies: 80
Views: 13871

Re: What Fraction of Retirement Assets in TIPS Ladder?

^ To extend that, I recommend reading through grok87's series on LMPs because it illuminated the value of a TIPS ladder for me: https://www.bogleheads.org/wiki/Grok%27 ... _portfolio
by drk
Fri Sep 01, 2023 12:11 pm
Forum: Personal Investments
Topic: Decision factors for holding or selling RSU and ESPP
Replies: 34
Views: 2874

Re: Decision factors for holding or selling RSU and ESPP

But, given that our company stock has doubled over the last 2 years, I would have lost a lot of money if I would have sold the stocks. Among the arguments not to sell company stock, "it went up a lot recently" is one of the worst. Just ask the folks working for COVID high-flyers who decided to use their income to double-down on their company's overvaluation. My company's stock halved in the last two years. I would have lost a lot of money if I hadn't sold my RSUs. 2. How do you stick to your decision when you keep selling RSUs / ESPPs but the stock keeps going up ? Read some books on behavioral finance. In particular, Annie Duke's Thinking In Bets provides a good framework for thinking about this: evaluate decisions on the basis ...
by drk
Thu Aug 31, 2023 6:54 pm
Forum: Investing - Theory, News & General
Topic: "Market Timing: Sin a Little" - Cliff Asness, Antti Ilmanen, Thomas Maloney
Replies: 28
Views: 3706

Re: Sin a Little

ResearchMed wrote: Thu Aug 31, 2023 6:45 pm Here is a direct link to the specific 2021 BH thread that shows up in the Google search.

viewtopic.php?t=352948

RM
I fixed the link above to restrict the search to "site:bogleheads.org". When copying over, I forgot to swap in the clean URL for Google's nasty one, which includes "site%3Abogleheads.org" and produces the unrestricted Google SERP that you saw. There are more examples than that one thread. :beer
by drk
Thu Aug 31, 2023 6:12 pm
Forum: Investing - Theory, News & General
Topic: "Market Timing: Sin a Little" - Cliff Asness, Antti Ilmanen, Thomas Maloney
Replies: 28
Views: 3706

Re: Sin a Little

You should ask Cliff how his strategies have done since 2015. :twisted:

But this has definitely been discussed previously.
by drk
Thu Aug 31, 2023 12:02 pm
Forum: Personal Investments
Topic: 2 really dumb questions about selling VG mutual fund for LTCG
Replies: 7
Views: 618

Re: 2 really dumb questions about selling VG mutual fund for LTCG

And you can put the order in today after 4 pm EDT to sell Friday.

OP, what does Vanguard report for your holding period right now? I'm curious if they make the change after one year, or after one year plus one day.
by drk
Thu Aug 31, 2023 11:24 am
Forum: Personal Finance (Not Investing)
Topic: Is now a good time to buy in San Francisco
Replies: 35
Views: 6836

Re: Is now a good time to buy in San Francisco

If you're asking Bogleheads for advice on market-timing with an asset you aren't familiar with, the answer is pretty clearly "no".
by drk
Tue Aug 29, 2023 6:21 pm
Forum: Personal Finance (Not Investing)
Topic: question on Safe Harbor 110%
Replies: 12
Views: 1251

Re: question on Safe Harbor 110%

You're going to hit the Safe Harbor via withholding? Set the extra money aside in a money market fund or T-bill or CD, and enjoy the opportunity to earn a bucket of points/miles. :beer
by drk
Tue Aug 29, 2023 5:43 pm
Forum: Personal Investments
Topic: Married 4 years and I'm the money person - change wife's target funds to VOO etc?
Replies: 16
Views: 2697

Re: Married 4 years and I'm the money person - change wife's target funds to VOO etc?

Leave it in the Vanguard TDF. If the money's not meant to be used for a few decades, there's no convenience to be gained in moving it, while slicing it up is more likely to create a performance gap. Besides, your investing success will be primarily determined by your savings rate and consistency.
by drk
Mon Aug 28, 2023 12:41 pm
Forum: Personal Finance (Not Investing)
Topic: Bank of America/Merrill Edge - Preferred Rewards
Replies: 7057
Views: 891411

Re: Bank of America/Merrill Edge - Preferred Rewards

bbrock wrote: Mon Aug 28, 2023 12:39 pm Until I get a 2nd CCR, or transfer my DW’s Roth to ME, I’m saving my 5.25% for $500 Costco cash cards. It’s my Costco Visa :D After that time, we can use the 2nd card for our Visible plan.
Makes it easy to calculate when I’ve hit my $2500/qtr
You spend $10k a year at Costco? :shock:
by drk
Mon Aug 28, 2023 12:39 pm
Forum: Personal Finance (Not Investing)
Topic: house closing: funds from VG, will they allow power of attorney so I don't have to be there?
Replies: 25
Views: 1042

Re: house closing: funds from VG, will they allow power of attorney so I don't have to be there?

ResearchMed wrote: Mon Aug 28, 2023 12:15 pm Each sending half (or whatever proportions are planned) seems the better of these two.
I agree. That one seems so obvious and normal that I didn't even think to suggest it initially. Quick edit FTW. :D
ResearchMed wrote: Mon Aug 28, 2023 12:15 pm If spouse A transfers money to spouse B's account and they then plan to have that amount included in a wire to the escrow company, isn't there likely to be a problem with wiring out money that just arrived?
A wire from OP's wife to OP should be available same-day. Maybe there's a concern about documentation of funds for the lender, but OP didn't mention a mortgage.
by drk
Mon Aug 28, 2023 12:34 pm
Forum: Personal Investments
Topic: 52 week low averaging vs dollar cost averaging? Buying index funds when they hit 52 week lows?
Replies: 22
Views: 2362

Re: 52 week low averaging vs dollar cost averaging? Buying index funds when they hit 52 week lows?

While I agree with Ellis's view of market timing, his view of bonds is just plain wrong. Demonstrably wrong, based on returns in 2021, when he wrote this, and 2023. In fact his take on bonds sounds a lot like market timing to me. No one has to own bonds, of course, but there are many legitimate reasons to do so, both financially and psychologically and emotionally. Not to sidetrack the discussion, which was about investing in stocks.... First, I realized that I linked the wrong post. Tailor Made is actually a better fit for OP's situation. Second, I think you're talking past Ellis's point: he's saying that bonds didn't/don't make sense for him because of significant human capital (while accumulating) and an indefinite time horizon (now). G...
by drk
Mon Aug 28, 2023 11:54 am
Forum: Personal Finance (Not Investing)
Topic: house closing: funds from VG, will they allow power of attorney so I don't have to be there?
Replies: 25
Views: 1042

Re: house closing: funds from VG, will they allow power of attorney so I don't have to be there?

This seems over-complicated. Why doesn't your wife just send you the money? Or send it to the escrow agent herself?
by drk
Mon Aug 28, 2023 11:53 am
Forum: Investing - Theory, News & General
Topic: I Bonds Mega Thread (I Bond Heads Rejoice!)
Replies: 6658
Views: 1241477

Re: I Bonds Mega Thread (I Bond Heads Rejoice!)

czaj wrote: Mon Aug 28, 2023 11:51 am Not sure if this has been addressed:

I want to sell some I Bonds on 9/1. Can I place my order on 8/31 for it to be processed on 9/1 and receive the September interest?

I assume the review page will show the correct interest before I hit submit?
Yes, no (two business days, so 8/31 would redeem on 9/2), and yes.
by drk
Mon Aug 28, 2023 11:41 am
Forum: Personal Investments
Topic: 52 week low averaging vs dollar cost averaging? Buying index funds when they hit 52 week lows?
Replies: 22
Views: 2362

Re: 52 week low averaging vs dollar cost averaging? Buying index funds when they hit 52 week lows?

I don't do this, and I don't know anyone who (admits to) doing it. If pressed for a name, I would call it Really Bad Market-Timing.

You should read this post by Charley Ellis (or his book Winning the Loser's Game) because he writes about the situation you appear to be in: more than enough to cover expenses, so investing for future generations. Maybe it will help you feel more comfortable investing with simplicity, never trying to time the market, and staying the course.
by drk
Sun Aug 27, 2023 10:16 am
Forum: Personal Finance (Not Investing)
Topic: Daycare vs Single working parent
Replies: 28
Views: 2051

Re: Daycare vs Single working parent

dek7 wrote: Sun Aug 27, 2023 6:29 am I) Tough it out for the next few years.
II) Me work part time/take a leave -> I don't really see the benefit of this as I'm already essentially putting in part time hours
These two are in conflict. The time crunch exists even though you're working part-time, so there would be a clear benefit to reducing that to zero hours. As you note, the crunch is only for a few years.

If your expenses are accurate, you could both quit your jobs, so it makes sense to focus on the one that helps household flourishing rather than the one that pays more.
by drk
Sat Aug 26, 2023 5:55 pm
Forum: Investing - Theory, News & General
Topic: 5% cash allocation
Replies: 29
Views: 2924

Re: 5% cash allocation

What was the reasoning behind this suggestion? Without that, this is just a set-up for Point/Counterpoint.
by drk
Fri Aug 25, 2023 7:07 pm
Forum: Investing - Theory, News & General
Topic: Now that long TIPS yields are 60 bp off their highs I will…
Replies: 2953
Views: 623543

Re: Now that long TIPS have cracked 2.00% again I will…

bogswenbern wrote: Fri Aug 25, 2023 4:25 pm I want a TIPS ladder but it is a headache to keep track of in my investing Google Docs spreadsheet - I would have to copy and paste values for each TIPS into the spreadsheet. This makes LTPZ more attractive, since the GOOGLEFINANCE function would just pull in the value automatically. Has anyone found a way to pull the values of individual TIPS into a Google Docs spreadsheet automatically?
If you intend to hold to term, you could just use the functions from #Cruncher's posts to calculate present value in your sheet.
by drk
Fri Aug 25, 2023 7:04 pm
Forum: Investing - Theory, News & General
Topic: The Final, Definitive Thread on Brokerage Transfer Bonuses
Replies: 7770
Views: 1352085

Re: The Final, Definitive Thread on Brokerage Transfer Bonuses

michaeljc70 wrote: Fri Aug 25, 2023 6:58 pm I did. It says you need to open it with a banker. No mention of an appt.
Ah, maybe it was just in the email with the promo code. Either way, it's easier to schedule an appointment than to pop in and potentially wait for one of the Premier bankers to be free.
by drk
Fri Aug 25, 2023 6:56 pm
Forum: Investing - Theory, News & General
Topic: The Final, Definitive Thread on Brokerage Transfer Bonuses
Replies: 7770
Views: 1352085

Re: The Final, Definitive Thread on Brokerage Transfer Bonuses

michaeljc70 wrote: Fri Aug 25, 2023 6:45 pm You need an appt to open a checking account??? :oops:
Or even to convert a checking account, as I had an Everyday checking account opened for a bonus earlier this year. After all, the Premier account is reserved for premier customers. :greedy

This is all spelled out on the promotion's landing page, BTW. You should read the details if you're considering bonus chasing.
by drk
Fri Aug 25, 2023 6:44 pm
Forum: Investing - Theory, News & General
Topic: The Final, Definitive Thread on Brokerage Transfer Bonuses
Replies: 7770
Views: 1352085

Re: The Final, Definitive Thread on Brokerage Transfer Bonuses

If you're uncomfortable receiving a phone call from Fidelity, the Wells bonus would be a poor choice. They schedule the branch visit for one hour even though there's only a few minutes of activity required so that they can offer more services (e.g., high-yield preferred deposit). After setting up the Wells Trade accounts, you'll also get calls and messages from a Wells Fargo Advisors employee just to check in and see if you need any help. The goal for this bonus is to get you to move to high-touch advisory services, after all. That said, it's pretty easy money if visiting a branch is convenient and you feel comfortable keeping the Premier banker on-task during your appointment. After that, the only potential "gotcha" is the accoun...
by drk
Fri Aug 25, 2023 1:55 pm
Forum: Personal Investments
Topic: Isn't FUMBX income awfully low?
Replies: 10
Views: 1147

Re: Isn't FUMBX income awfully low?

FUMBX with duration ~2.6 years and SEC Yield of 4.77%
VGSH with duration ~1.9 years and SEC Yield of 5.02%
Treasury Yield Curve with 2-year at 4.98% and 3-year at 4.69%

That seems about right. Where are you seeing a yield for VGSH that's twice as high as FUMBX?
by drk
Thu Aug 24, 2023 1:59 pm
Forum: Personal Consumer Issues
Topic: Smoke detector that only makes noise when there is real danger.
Replies: 83
Views: 5149

Re: Smoke detector that only makes noise when there is real danger.

Replacing the units after ten years is a no-brainer.
by drk
Thu Aug 24, 2023 1:53 pm
Forum: Personal Finance (Not Investing)
Topic: Pro rata tax back door Roth IRA
Replies: 15
Views: 1245

Re: Pro rata tax back door Roth IRA

sc9182 wrote: Wed Aug 23, 2023 10:27 pm A dude rolling-in $350k — does OP really need to worry about Backdoor small $ amounts
Two things:

1. Backdoor Roth and Mega Backdoor Roth are not mutually exclusive, and I similarly recommend the MBR if available in OP's plan
2. Higher income makes creating Roth space more valuable because higher taxes amplify tax drag in taxable accounts

BTW, I got a CP2000 after rolling my Traditional IRA into an employer plan in order to start doing backdoor Roth contributions. Resolving it was straightforward: print out statements showing the money trail, write a short letter explaining them, and send the bundle to the IRS via certified mail. That was also how I learned that you can call the IRS and talk to a helpful human.
by drk
Wed Aug 23, 2023 7:56 pm
Forum: Personal Finance (Not Investing)
Topic: Pro rata tax back door Roth IRA
Replies: 15
Views: 1245

Re: Pro rata tax back door Roth IRA

Rolling a Traditional IRA into an employer plan doesn't pollute or co-mingle anything. That's the intention for a "Rollover" IRA in the first place. I don't really understand the FUD around backdoor Roth IRAs. IIRC, Kitces had a post about whether it's appropriate to advise clients to do them, but that's a different question entirely.

From OP's previous post, I see that the IRA balance is about $26k, with income over $350k. As long as the 401k options are decent, rolling in seems like a good option.
by drk
Wed Aug 23, 2023 7:06 pm
Forum: Personal Finance (Not Investing)
Topic: Bank of America/Merrill Edge - Preferred Rewards
Replies: 7057
Views: 891411

Re: Bank of America/Merrill Edge - Preferred Rewards

I got a pop-up about this when logging into the BofA website, and I assumed that they finally killed the Online Shopping bonus. :D
by drk
Wed Aug 23, 2023 6:58 pm
Forum: Personal Finance (Not Investing)
Topic: Pro rata tax back door Roth IRA
Replies: 15
Views: 1245

Re: Pro rata tax back door Roth IRA

How much money is in the IRA? If the tax hit wouldn't be too bad, you could also just convert it to Roth.
by drk
Wed Aug 23, 2023 2:12 pm
Forum: Personal Finance (Not Investing)
Topic: Loan payoff question
Replies: 6
Views: 1361

Re: Loan payoff question

You should be able to use Wells Fargo to pull the money from your Fidelity brokerage account via ACH.
by drk
Wed Aug 23, 2023 1:48 pm
Forum: Personal Consumer Issues
Topic: Vanguard has blocked/blacklisted my home IP address
Replies: 206
Views: 17069

Re: Vanguard has blocked/blacklisted my home IP address

AFAIK, Vanguard uses AWS, so you (or another of your ISP's customers nearby) might have tripped Cloudfront's safeguards. If you're not running anything botnet-like on your network, probably a good idea to check that your devices aren't compromised.
by drk
Tue Aug 22, 2023 2:43 pm
Forum: Personal Finance (Not Investing)
Topic: Help Annette Keep Working and Not Retire
Replies: 648
Views: 63012

Re: Help Annette Keep Working and Not Retire

Every post you made in this thread, including the one you quoted, was focused on whether she had enough resources to retire. Sure, your assessment was that she does. But, that is still a financial decision. It wasn't until you responded to my post that you made any mention of it not being a financial decision. Maybe that is what you really meant with all you number crunching posts, but I for one certainly missed that "hint". My first post on this thread was this: It doesn't have to be "all or nothing". Perhaps you can transition to a less stressful job which would be easier to endure for a few years. Not just easier to endure, but likely to pay dividends in the future. An experienced and accomplished attorney likely has...
by drk
Tue Aug 22, 2023 2:38 pm
Forum: Personal Finance (Not Investing)
Topic: Help Annette Keep Working and Not Retire
Replies: 648
Views: 63012

Re: Help Annette Keep Working and Not Retire

AnnetteLouisan wrote: Tue Aug 22, 2023 2:16 pm If I start collecting SS at 62, it will be $29k per year gross
If I start collecting at 67, it will be $39k per year gross
If you haven't already, I recommend grok87's series on Liability Matching Portfolios because you seem like a prime candidate. As a bonus, you'll be able to say that your allocation is 50/50 with a fully funded LMP, so people will stop nagging you about only having 20% stocks. :D
by drk
Tue Aug 22, 2023 2:28 pm
Forum: Personal Finance (Not Investing)
Topic: Help Annette Keep Working and Not Retire
Replies: 648
Views: 63012

Re: Help Annette Keep Working and Not Retire

marcopolo wrote: Tue Aug 22, 2023 1:39 pm you guys/gals are solving the wrong problem.

Even if the OP had $20M, if they believe retirement means no longer being alert, active, or relevant, (their words), there would be no compelling reason to retire.

What OP could focus on, if retirement is ever a goal, is to explore things outside of work that might provide some sense of fulfillment.
If you had finished reading the thread, you would have seen my point:
drk wrote: Tue Aug 22, 2023 1:35 pm Hopefully that puts to rest all the hand-wringing about the conservative portfolio and whether it's even possible for Annette to retire today.
Hint: it's that this is not a financial decision.
by drk
Tue Aug 22, 2023 1:35 pm
Forum: Personal Finance (Not Investing)
Topic: Help Annette Keep Working and Not Retire
Replies: 648
Views: 63012

Re: Help Annette Keep Working and Not Retire

aristotelian wrote: Tue Aug 22, 2023 1:29 pm That wouldn't count social security, would it? SS would cover the $40k shortfall when she turns 67-70, so all she really needs is a TIPS ladder to cover the $40k shortfall between now and claiming SS. So the TIPS ladder might be $500k, with $700k surplus.
Correct on not counting Social Security, so her situation is even better than that. Hopefully that puts to rest all the hand-wringing about the conservative portfolio and whether it's even possible for Annette to retire today.
by drk
Tue Aug 22, 2023 1:25 pm
Forum: Personal Finance (Not Investing)
Topic: Help Annette Keep Working and Not Retire
Replies: 648
Views: 63012

Re: Help Annette Keep Working and Not Retire

If $65k is accurate on the expenses, your $25k COLA pension leaves $40k to cover. Today, a 30-year TIPS ladder will give you that for a hair under $900k. That would still leave $340k in cash/bonds for your risk portfolio.
by drk
Tue Aug 22, 2023 11:31 am
Forum: Personal Investments
Topic: What should I do with BND assets?
Replies: 45
Views: 4452

Re: What should I do with BND?

jebmke wrote: Tue Aug 22, 2023 10:59 am If it were me I'd sell it, book the loss for tax purposes and reinvest in a similar but not identical bond fund.
+1 to this: sell the BND and buy something similar like AGG, SCHZ, or SPAB
by drk
Tue Aug 22, 2023 11:04 am
Forum: Personal Finance (Not Investing)
Topic: Percent downpayment in a 7.5% mortgage world
Replies: 42
Views: 4952

Re: Percent downpayment in a 7.5% mortgage world

ShadowCat wrote: Tue Aug 22, 2023 9:59 am Was I taught incorrectly? Is there another/better way I should be thinking of mortgage interest?
No idea what's correct, but I think it's easier to compare after-tax yields. I'm sure it all works out the same. :beer
by drk
Mon Aug 21, 2023 7:55 pm
Forum: Personal Finance (Not Investing)
Topic: Percent downpayment in a 7.5% mortgage world
Replies: 42
Views: 4952

Re: Percent downpayment in a 7.5% mortgage world

OP, you haven't provided enough details to opine on your situation.
  • What's your marginal income tax rate?
  • Will you be able to deduct mortgage interest?
  • What does the rest of your portfolio look like?
  • Will directing all savings towards the house allow you to adequately save for the future?
  • How long do you plan to stay in this house?
  • etc.
If I were taking out a mortgage today, I wouldn't do what you're suggesting (among other reasons: I live in a non-recourse state and itemize), but I would probably direct all of my fixed income assets towards the down-payment.
by drk
Mon Aug 21, 2023 7:42 pm
Forum: Personal Finance (Not Investing)
Topic: Least Bad Refinance Rates
Replies: 5
Views: 852

Re: Least Bad Refinance Rates

There's still a little action in the relationship mortgage thread: viewtopic.php?t=280692

You might also try Wells Fargo, Citi, PNC, etc.
by drk
Mon Aug 21, 2023 7:40 pm
Forum: Personal Finance (Not Investing)
Topic: Percent downpayment in a 7.5% mortgage world
Replies: 42
Views: 4952

Re: Percent downpayment in a 7.5% mortgage world

guyfromct wrote: Mon Aug 21, 2023 7:32 pm I suspect it’s comparing a mortgage to tax-equivalent yield on a taxable bond, you’d need to have a bond yielding 9% to net 7.5% after tax.
OK. That seems like a convoluted way to approach it, but it seems like you hit on the internal logic.
by drk
Mon Aug 21, 2023 7:29 pm
Forum: Personal Finance (Not Investing)
Topic: Percent downpayment in a 7.5% mortgage world
Replies: 42
Views: 4952

Re: Percent downpayment in a 7.5% mortgage world

newparentNYC wrote: Mon Aug 21, 2023 7:08 pm in todays mortgage rate world with rates around 7.5%, every dollar down is earning the equivalent of around 10% annualized (let’s say 9% if long term rates and around 14% short term equivalent)
What does this mean? Mortgage rates are reported as APR, which is already annualized.
by drk
Mon Aug 21, 2023 6:52 pm
Forum: Investing - Theory, News & General
Topic: Vanguard changed their website
Replies: 30
Views: 5259

Re: Vanguard changed their website

Cubs Fan wrote: Mon Aug 21, 2023 5:40 pm My goal is to find out when the inverted yield curve ends so that I can purchase more BND financed with money that is currently in VMFXX.
You're describing market-timing, and that particular strategy seems questionable.
Cubs Fan wrote: Mon Aug 21, 2023 5:40 pm I keep at least $100,000 at Merrill Edge so that I can receive Preferred Platinum status with checking and rewards
FWIW, you don't actually need to keep $100k there. You just need to move enough there to get your three-month average balance over $100k every 15 months.
by drk
Mon Aug 21, 2023 6:32 pm
Forum: Investing - Theory, News & General
Topic: I Bonds Mega Thread (I Bond Heads Rejoice!)
Replies: 6658
Views: 1241477

Re: When to cash out I-bonds?

nomorework wrote: Mon Aug 21, 2023 6:10 pm Thats what Im trying to figure out...Whats the sweet spot to cash out and reinvest. Perhapse 1 year and 3 months ?
Yes, see this reply above:
samsoes wrote: Sun Aug 20, 2023 6:27 pm www.eyebonds.info ... Remember to count back three months to account for the penalty.
Specifically Oct 2022. You would want to redeem in the third month after the composite rate falls, so: Jan 1 2024.
by drk
Mon Aug 21, 2023 3:43 pm
Forum: Personal Consumer Issues
Topic: Anyone else underwhelmed by Schwab web interface?
Replies: 35
Views: 4030

Re: Anyone else underwhelmed by Schwab web interface?

FireAway wrote: Mon Aug 21, 2023 10:17 am when you're looking at and using a page every day
What are you doing with them every day? The six accounts you list are not that many, and it doesn't seem like they would require daily interaction.
by drk
Mon Aug 21, 2023 11:41 am
Forum: Personal Investments
Topic: ARM rate arbitrage
Replies: 7
Views: 836

Re: ARM rate arbitrage

Trying to distill here:

1. Mortgage: $500k at 5% (resets in 2027 with a 2% annual cap and 11% maximum), but itemizing so after-tax rate is lower
2. Student loan: $x at y% (paid off soon)
3. Car loan: $14k at 5%

It seems like you're currently using a sinking fund (maybe without knowing that name), but trying to talk yourself out of it. If that's the case, you have my blessing: focus on accumulating wealth rather than bucketing money specifically for your mortgage. If you have an opportunity to refinance to a FRM at a lower rate, or you're facing an upward 2027 rate reset, re-evaluate.

Your $12k T-bill ladder is probably earning less than 5% after-tax, so use that to pay down/off the car loan.
by drk
Sun Aug 20, 2023 8:39 pm
Forum: Personal Finance (Not Investing)
Topic: Help Annette Keep Working and Not Retire
Replies: 648
Views: 63012

Re: Help Annette Keep Working and not retire

sport wrote: Sun Aug 20, 2023 7:00 pm It doesn't have to be "all or nothing". Perhaps you can transition to a less stressful job which would be easier to endure for a few years.
Not just easier to endure, but likely to pay dividends in the future. An experienced and accomplished attorney likely has plenty of opportunities to downshift while continuing to do interesting and meaningful work.