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Old 11-20-2021, 10:13 AM   #41
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Originally Posted by rubytuesday View Post
Another really dumb question: if you have a mutual fund, where do you report the earnings in the tax form? ...
No dumb questions here. Not a single one of us was born knowing how to fill out a tax return. I will go out on a limb and say that no one here looks down this kind of question.

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ruby- waiting until there is a "crash" IS timing the market. ...
Really, every buy and sell decision is to some extent timing. Buy today or tomorrow? sell this tax year or next? ... With your time horizon you will probably see two or three big market dips while your money is parked. This is expected and no big deal; if history is any guide, every single dip is followed by a recovery. So even if you buy today and the market dips tomorrow, it will almost certainly come back and move higher. Maybe even within a few months. Almost certainly within just a few years. Just as it has for a hundred years or more.

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Thank you, but I do not intend to gain investing expertise ...
Understandable. The industry works hard to make us little guys believe that investing is complex and that we have to hire their priests and witches to guide us. The point of the Bill Schultheis' first book that I recommended is to show you that "investing expertise" is not necessary. It is a pretty gentle book, even including a recipe for pumpkin pie. You can sample his thoughts via several short blog posts here: https://coffeehouseinvestor.com/the-blog
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Old 11-20-2021, 11:49 AM   #42
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Originally Posted by aja8888 View Post
Here's the I Bond thread. You really should read thru this.

https://www.early-retirement.org/for...-a-111509.html

The other $80K? Do you have any investment accounts now? Like Vanguard, Charles Schwab, etc?

Lets start there.

Okay, even though I am not an investor, I do have one market account. I converted my modest IRA into Roth (and yes, I did most of the conversion when the market crashed in 2020, which saved me a tremendous amount in taxes, plus the value went up last year post-crash by something like 65%, which will never be taxed because it is in a Roth). My Roth is in an aggressive mutual fund, but I rarely even look at it, and will not be doing anything with it hopefully for a long time. I won't say which company, but it seems to be doing well (it is a managed fund, I wouldn't know what to do with it if I had to do anything).


But this $100k is savings, which I obviously couldn't convert into Roth. In the past couple of initial years of retirement, I realized that I was spending far less than I thought I would, have a good healthcare coverage, and will not need an emergency fund of the size that I thought I would need. So I don't know what to do with the extra $100k. I suppose I could put it in the same really aggressive fund where I have my Roth, but that one grows so fast (and btw also swings up/down/up sharply from day to day) that I would be paying a lot in taxes (while I am not withdrawing anything), which is something I don't want. That is why a friend suggested a tax-efficient fund for these extra $100k.
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Old 11-20-2021, 01:08 PM   #43
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... But this $100k is savings, which I obviously couldn't convert into Roth. In the past couple of initial years of retirement, I realized that I was spending far less than I thought I would, have a good healthcare coverage, and will not need an emergency fund of the size that I thought I would need. So I don't know what to do with the extra $100k. I suppose I could put it in the same really aggressive fund where I have my Roth, but that one grows so fast (and btw also swings up/down/up sharply from day to day) that I would be paying a lot in taxes (while I am not withdrawing anything), which is something I don't want. That is why a friend suggested a tax-efficient fund for these extra $100k.
Let's say that you have two choices with this $100k. Both are reasonably prudent but one is higher risk than the other.

Choice 1 will likely double in 10 years but you'll pay 15% in taxes so at the end of 10 years you'll have $185k.

Choice 2 will likely triple in 10 years but you'll pay 20% in taxes so at the end of 10 years you have $260k.

Which would you rather have after 10 years... $185k or $260k?

Sounds like you prefer the $185k to me.
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Old 11-20-2021, 03:09 PM   #44
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I also do not think the tax efficient piece is really important.

Small cap stocks have the best track record as inflation hedge over periods of a decade plus. Large caps are good too, though not quite as good as small caps.

So I would look for a good small cap index or fund and a good large cap fund or index. Maybe split 50:50.

Find some candidates at www.morningstar.com.
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Old 11-20-2021, 04:00 PM   #45
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To the OP:
Step 1: LEARN about investing. It's moderately critical to your financial well being.

Step 2: invest most of your excess money and excess retirement income into stock index funds, such as VOO, VTI, VXF, VGT, and QQQ.

In year nine of retirement, this is exactly what I do with excess money beyond around $10k that I keep in checking to cover lumpy expenses...
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Old 11-20-2021, 04:46 PM   #46
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Buy a rental property.

100k will allow you to buy a solid 250-400k rental (solid meaning it's in a good neighborhood, is attractive to a good family and allows someone to move in right way) and also allows you to hold back 20k for expenses and unknowns.

If you find something on the low end of the cost scale you'll likely profit monthly right away (on top of the management company you hired to run it) and even if you're on the high end, you'll cashflow within a couple years.

By the end of your 10-15year window the tenants will have paid the loan down by half, rents will be paying you monthly and chances are the property will be worth well more than what you paid... and thats without even calculating the annual write-offs, deductions etc.

What does all that mean?
It means you now have options:
- Refi and pull your 100k back out but keep the rental and the monthly income
- Let it ride, because you realize you like having the monthly income better than the cash you still likely don't need
- Sell and pull all the money out (I strongly doubt you'll decide on this option at that point, but nice to know its there if you need/want it).
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Old 11-20-2021, 05:08 PM   #47
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This site is great. I was about to come ask the same question and hadn’t even considered ibonds. Just signed up my wife and I. We’ll invest 20k now and 20k in January. That takes care of $40k of our “problem.”
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Old 11-20-2021, 05:15 PM   #48
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Originally Posted by anothercog View Post
This site is great. I was about to come ask the same question and hadn’t even considered ibonds. Just signed up my wife and I. We’ll invest 20k now and 20k in January. That takes care of $40k of our “problem.”
Excellent!
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Old 11-23-2021, 01:22 PM   #49
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Originally Posted by rubytuesday View Post
So, if I am going to finally buy some "financial product" with a bit of cash (once, and only once, in my life), I won't buy it at the peak price, but when I hear the market is crashing (again, March 2020 was apparently very bad since everyone heard about it, even not following the markets - well, when I hear about it again, that seems like the time to buy a "financial product" - if I am actually ever going to do that, right?).

This is dumb. Are you trolling us? You don't watch the market, yet you think you will hear about a crash opportunity to go all in?

Go look at a 10+ year chart on S&P 500. Look at all the times it was at a "peak price" … and where it went after that.
https://finance.yahoo.com/chart/%5EGSPC#eyJpbnRlcnZhbCI6Im1vbnRoIiwicGVyaW9kaWNpdH kiOjEsInRpbWVVbml0IjpudWxsLCJjYW5kbGVXaWR0aCI6Mi4z NDM5MzYzODE3MDk3NDE0LCJmbGlwcGVkIjpmYWxzZSwidm9sdW 1lVW5kZXJsYXkiOnRydWUsImFkaiI6dHJ1ZSwiY3Jvc3NoYWly Ijp0cnVlLCJjaGFydFR5cGUiOiJsaW5lIiwiZXh0ZW5kZWQiOm ZhbHNlLCJtYXJrZXRTZXNzaW9ucyI6e30sImFnZ3JlZ2F0aW9u VHlwZSI6Im9obGMiLCJjaGFydFNjYWxlIjoicGVyY2VudCIsIn BhbmVscyI6eyJjaGFydCI6eyJwZXJjZW50IjoxLCJkaXNwbGF5 IjoiXkdTUEMiLCJjaGFydE5hbWUiOiJjaGFydCIsImluZGV4Ij owLCJ5QXhpcyI6eyJuYW1lIjoiY2hhcnQiLCJwb3NpdGlvbiI6 bnVsbH0sInlheGlzTEhTIjpbXSwieWF4aXNSSFMiOlsiY2hhcn QiLCLigIx2b2wgdW5kcuKAjCJdfX0sImxpbmVXaWR0aCI6Miwi c3RyaXBlZEJhY2tncm91bmQiOnRydWUsImV2ZW50cyI6dHJ1ZS wiY29sb3IiOiIjMDA4MWYyIiwic3RyaXBlZEJhY2tncm91ZCI6 dHJ1ZSwiZXZlbnRNYXAiOnsiY29ycG9yYXRlIjp7ImRpdnMiOn RydWUsInNwbGl0cyI6dHJ1ZX0sInNpZ0RldiI6e319LCJjdXN0 b21SYW5nZSI6eyJzdGFydCI6MzE1NjQwODAwMDAwLCJlbmQiOj E2MzMwNjQ0MDAwMDB9LCJzeW1ib2xzIjpbeyJzeW1ib2wiOiJe R1NQQyIsInN5bWJvbE9iamVjdCI6eyJzeW1ib2wiOiJeR1NQQy IsInF1b3RlVHlwZSI6IklOREVYIiwiZXhjaGFuZ2VUaW1lWm9u ZSI6IkFtZXJpY2EvTmV3X1lvcmsifSwicGVyaW9kaWNpdHkiOj EsImludGVydmFsIjoibW9udGgiLCJ0aW1lVW5pdCI6bnVsbH0s eyJzeW1ib2wiOiJeR1NQQyIsInN5bWJvbE9iamVjdCI6eyJzeW 1ib2wiOiJeR1NQQyJ9LCJwZXJpb2RpY2l0eSI6MSwiaW50ZXJ2 YWwiOiJtb250aCIsInRpbWVVbml0IjpudWxsLCJpZCI6Il5HU1 BDIiwicGFyYW1ldGVycyI6eyJjb2xvciI6IiM3MmQzZmYiLCJ3 aWR0aCI6MiwiaXNDb21wYXJpc29uIjp0cnVlLCJzaGFyZVlBeG lzIjp0cnVlLCJjaGFydE5hbWUiOiJjaGFydCIsInN5bWJvbE9i amVjdCI6eyJzeW1ib2wiOiJeR1NQQyJ9LCJwYW5lbCI6ImNoYX J0IiwiZmlsbEdhcHMiOmZhbHNlLCJhY3Rpb24iOiJhZGQtc2Vy aWVzIiwic3ltYm9sIjoiXkdTUEMiLCJnYXBEaXNwbGF5U3R5bG UiOiJ0cmFuc3BhcmVudCIsIm5hbWUiOiJeR1NQQyIsIm92ZXJD aGFydCI6dHJ1ZSwidXNlQ2hhcnRMZWdlbmQiOnRydWUsImhlaW dodFBlcmNlbnRhZ2UiOjAuNywib3BhY2l0eSI6MSwiaGlnaGxp Z2h0YWJsZSI6dHJ1ZSwidHlwZSI6ImxpbmUiLCJzdHlsZSI6In N0eF9saW5lX2NoYXJ0IiwiaGlnaGxpZ2h0IjpmYWxzZX19XSwi c3R1ZGllcyI6eyLigIx2b2wgdW5kcuKAjCI6eyJ0eXBlIjoidm 9sIHVuZHIiLCJpbnB1dHMiOnsiaWQiOiLigIx2b2wgdW5kcuKA jCIsImRpc3BsYXkiOiLigIx2b2wgdW5kcuKAjCJ9LCJvdXRwdX RzIjp7IlVwIFZvbHVtZSI6IiMwMGIwNjEiLCJEb3duIFZvbHVt ZSI6IiNmZjMzM2EifSwicGFuZWwiOiJjaGFydCIsInBhcmFtZX RlcnMiOnsid2lkdGhGYWN0b3IiOjAuNDUsImNoYXJ0TmFtZSI6 ImNoYXJ0IiwicGFuZWxOYW1lIjoiY2hhcnQifX19LCJyYW5nZS I6eyJkdExlZnQiOiIxOTgwLTAxLTAxVDA2OjAwOjAwLjAwMFoi LCJkdFJpZ2h0IjoiMjAyMS0xMS0yNFQwNTo1OTowMC4xODRaIi wicGVyaW9kaWNpdHkiOnsiaW50ZXJ2YWwiOiJtb250aCIsInBl cmlvZCI6MX0sInBhZGRpbmciOjB9fQ--
Match 2020 was a once in a lifetime event. The previous time that happened was October 1987.
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Old 11-23-2021, 01:53 PM   #50
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With a ten to fifteen year time horizon, I'd put it in VTSAX. And I'd do it now and not try to time the market. It's tax and fee efficient and the dividends would be recorded for tax purposes on IRS Schedule B, part II.
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Old 11-24-2021, 10:27 AM   #51
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Thanks to a few posters that mentioned potentially helpful things, but I won't be following the thread any more (I guess there is no way in this forum for the OP who started the thread to lock the thread). I'm a bit surprised by the degree of "flaming" about a pretty straight-forward financial question :-).
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Old 11-24-2021, 11:23 AM   #52
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Originally Posted by anothercog View Post
This site is great. I was about to come ask the same question and hadn’t even considered ibonds. Just signed up my wife and I. We’ll invest 20k now and 20k in January. That takes care of $40k of our “problem.”
And if you want to you can overpay your 2020 income taxes by $5k and buy $5k of i-bonds with your 2020 tax refund... those would be paper bonds though.
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Old 11-24-2021, 11:27 AM   #53
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This is dumb. Are you trolling us? You don't watch the market, yet you think you will hear about a crash opportunity to go all in?

Go look at a 10+ year chart on S&P 500. Look at all the times it was at a "peak price" … and where it went after that. ...

Match 2020 was a once in a lifetime event. The previous time that happened was October 1987.
Jeesh ray... that is quite harsh. Did you get up on the wrong side of the bd this morning? There are plenty of people concerned about the prospect of a correction or crash sometime soon given we are at all-time highs and valuations are so rich.
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Old 11-25-2021, 11:22 AM   #54
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Thanks to a few posters that mentioned potentially helpful things, but I won't be following the thread any more (I guess there is no way in this forum for the OP who started the thread to lock the thread). I'm a bit surprised by the degree of "flaming" about a pretty straight-forward financial question :-).
I don't see any flames, but I suspect you've gotten more than a few good responses. It takes a while to get used to the inevitable drift of threads and the personal opinions.
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Old 11-26-2021, 04:25 PM   #55
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Suppose you retired on a pension, and do not know anything about investing really. Single, no need to leave inheritance. Suppose you have about $100k right now that you are sure you won't need in the next 10-15 years, but would like to protect it from inflation for some possible future use in about 10-15 years. You won't be doing anything with it in the meantime. What would you do with this $100k, where would you put it away for 10-15 years?
Lots of good advice so will not double up. Would put 5-10% in BTC (Bitcoin) via a Coinbase/CoinbasePro Account.
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Old 11-26-2021, 04:50 PM   #56
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Vtsax.
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Old 11-26-2021, 05:05 PM   #57
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I retired on a govt pension that covers everything 100%. Put 88% of mine in SCHB, 5% Cash, 7% other. JMHO but my choices would be 100% in either SCHB (Schwab), SPY, FSKAX ( Fidelity) all Total Market Index ETFs / Funds. Pick just 1, auto invest all dividends & capital gains. Once you get over 500k, branch out. Til then just 1. Done
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Old 11-26-2021, 05:06 PM   #58
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Lots of good advice so will not double up. Would put 5-10% in BTC (Bitcoin) via a Coinbase/CoinbasePro Account.
I don't want to to provoke an unresolvable debate, so I'll just add William Bernstein's observation about retirement portfolios: “Make no mistake about it: The object of this particular game is not to get rich – It’s to not get poor.
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Old 11-26-2021, 05:16 PM   #59
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I would start by buying an Ibond for $10 K now (Nov) and the current rate of 7%+ interest. Then buy another $10 K one in January 2022.

The other $80K? Good question. Let's hear from others here.
I second this.
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Old 11-26-2021, 05:36 PM   #60
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I don't want to to provoke an unresolvable debate, so I'll just add William Bernstein's observation about retirement portfolios: “Make no mistake about it: The object of this particular game is not to get rich – It’s to not get poor.
The biggest problem I see here and other sites is a personal bias. The advice I would give myself is completely different than what I would give my 35 year old son, assuming he wants to retire at age 50. While I'm probably OK going conservative and protecting my gains it may be irresponsible for others.

I know we run for cover with the anti - this time is different banter. However the situation really is evolving. Look at the differences in investing when I started in the '70s and today. Ten to fifteen years is a long time.
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