Forum Replies Created
Historical context: back in the 80s, 90s, 00s these “location” strategies were clear; put high dividend bonds at 12–5% rates in tax deferred, to protect them from immediate taxation. For the past 10 years, however, bond rates have been a pittance, so what’s to protect?
As per your questions, I believe each of your accounts should have it’s own asset allocation, based upon duration, and independent of your others. As your mentioned, you can not transfer money across accounts, so keep them independent.
@vanguard MD, do you not also read A Wealth of Common Sense? and listen to AnimalSpiritspod ?September 11, 2019 at 12:00 pm MST in reply to: Is there a bubble in physician personal finance blogs? Or, more generally, PF blogs? #245335
“Living in a barn”—- Never. No amount of white wash could eliminate the wafts of manure from those timbers. And neither the corn crib, the milk house, the machine shed, nor the chicken coop. Build a HOUSE.
The role of bonds is primarily to reduce risk and volatility in your portfolio
Agree, but also can generate income. EM bonds currently yielding 5.5%. It’s all a tradeoff.August 21, 2019 at 10:17 am MST in reply to: does anyone invest in emerging market bonds/EM govt bonds or foreign REITs? #240398
The billionaires are clustered geographically, so rarely cross paths with us. Michael Kitces interviewed a wealth manager in my city. When the WM acutely needed $$ for a partner buyout, he simply traveled around his lake house neighborhood to find a lender—-right in the hood.
Historical review. The 16th constitutional amendment allowed a federal income tax which originally included only the top 1% earners….a beachhead that now includes 50% of earners. A wealth tax will similarly serve as a beachhead to include progressively lower levels of wealth.August 19, 2019 at 4:42 pm MST in reply to: Preparing (FINANCIALLY) for the possibility of socialized medicine #239990
@panscan, recognizing patterns. What you do every image you interpret.August 19, 2019 at 11:50 am MST in reply to: Preparing (FINANCIALLY) for the possibility of socialized medicine #239940
( have not read above ) Retirement uber alles. At 4% withdrawal, you’ll need x25 retirement budget to fill your nest egg. Do not burden your children with your retirement failure.August 19, 2019 at 11:48 am MST in reply to: people's thoughts on when to put more into 529 instead of retirement #239939Liked by Lordosis
Beware reporting bias. Your BIL will report whenever he has a hot streak; and go silent when he’s underwater.
(have not read the above replies) Ask him about a potential world of negative bond interest rates. How likely? how to navigate?
I”ll push back against @panscan statement that the cognitive practice of medicine involves memorization. Cognitively, good medical practice requires pattern recognition, pattern recognition, pattern recognition, pattern recognition, etc. In the wild, on the screen, listening to pts. visual observation, EKG reading, and more pattern recognition. When you’ve got that down, you need more pattern recognition, pattern recognition, pattern recognition, and more pattern recognition.August 19, 2019 at 11:33 am MST in reply to: Preparing (FINANCIALLY) for the possibility of socialized medicine #239932
Now age 62. I dropped mine 14 years ago, and at $2k annually, I savor the $28k extra in my purse, not theirs.
Your proposal would yield a first year $1200 on $27,000 of principal. $1200/27,000=4.4%. Each successive year would yield slightly less. Yes, I would do that deal.
The effective DURATION is the difference. If the Fed raises short term rates , VCITX, with a duration of 6.76 years, will drop in asset value by 6.76% for every 1% rise in short term rates. VCAIX, with a duration of 5.05 years, will drop in value 5.05% for every 1% rise in short term rates. In reality the changes are not that precise nor predictable because the long duration bonds tend to be influenced by more factors than just short term Fed rates. Because you can not predict the Fed decisions, and you need the asset soon, put them into the shortest available duration fund.
Consider a series I bond over a TIPS bond. The series I advantage is no taxation until the decade that you decide to sell it.July 22, 2019 at 1:40 pm MST in reply to: Any thoughts on buying TIPS thru Treasury Auctions? #232642