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Anyone here use Bondbloxx ETFs? They offer a nice range of treasury ETFs at various durations: 0.5, 1, 2, 3, 5, 7, 10, 20 year. The 6 month (XHLF) and 1 year (XONE) both currently have very low expenses (0.03%) and good yields. These shorter term ones seem like reasonably good alternatives to thread favorite SGOV. edit: link to products: https://bondbloxxetf.com/products/ drk fucked around with this message at 17:13 on Jul 9, 2023 |
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Jul 9, 2023 17:08
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| # ? May 17, 2024 00:40 |
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Yes, these look nice. Think I will roll some treasury bills maturing this month into XHLF. XHLF is listed as 99.6% and XONE at 99.9% treasuries, which is very good for those who get a state income tax deduction.
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Jul 9, 2023 17:48
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Part of the appeal for me of using treasuries for some of my cash-ish savings is the state/local tax exemption. From what I understand, these Bondbloxx ETFs are 99+% US treasuries, so they should definitely qualify, but is it more of a pain to deal with at tax time? I've seen a few articles about having to calculate how much of the interest on a 1099-DIV came from each particular fund, then how much of that was US federal debt, and it seems like a bit of a pain in the rear end. Is that worth worrying about?
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Jul 11, 2023 12:25
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I keep reading that name and think you're investing in Roblox bonds and promissory notes.
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Jul 11, 2023 13:00
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SpelledBackwards posted:I keep reading that name and think you're investing in Roblox bonds and promissory notes. Might be a better investment
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Jul 11, 2023 14:57
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I’m not sure if this is the right thread but are there any recommended options for long term care insurance? I’m asking for two people here, myself since I don’t have kids, and also someone who is worried because their father had early onset Alzheimer’s. Most of the discussion I’ve seen about this has been very pessimistic but I’d like to find out if there are any non-horrible options.
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Jul 11, 2023 15:58
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Snowy posted:I’m not sure if this is the right thread but are there any recommended options for long term care insurance? Last I recall (and I haven't had to deal with any of this in depth), there aren't good options. "Save up enough to be able to handle it" being the better one, over paying whatever premiums would be required. But curious if any others have details. For the latter person you're asking about. You might want to look into uhh...financial power of attorney? But I'm way beyond my depth here.
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Jul 11, 2023 16:33
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The Leck posted:Part of the appeal for me of using treasuries for some of my cash-ish savings is the state/local tax exemption. From what I understand, these Bondbloxx ETFs are 99+% US treasuries, so they should definitely qualify, but is it more of a pain to deal with at tax time? I've seen a few articles about having to calculate how much of the interest on a 1099-DIV came from each particular fund, then how much of that was US federal debt, and it seems like a bit of a pain in the rear end. Is that worth worrying about? The per-holding income and federal government obligations percentages were in my brokerage tax document last year. Yes, you do need to do a little math, but its not terribly time consuming. The same math would need to be done to claim a state tax exemption from any bond fund, including popular ones like BND/VBTLX (dont hold BND if you live in California and care about the tax exemption, its not eligible).
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Jul 11, 2023 17:03
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My employer just started offering a long term care insurance program that is somewhat subsidized by them and so I looked through it and it's still absolute garbage. I based expenses on what my mom's Parkinsons started costing them from early diagnosis and figured the money would have helped for about three years before hitting the lifetime max and being gone. That's just one data point but my work typically offers pretty good benefits, good health care plans etc. so if this is what they thought was good, that's really disappointing. I figured if I had at least ten years to save, just putting the premiums into my long term investing would be better.
Leperflesh fucked around with this message at 17:11 on Jul 11, 2023 |
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Jul 11, 2023 17:05
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Snowy posted:I’m not sure if this is the right thread but are there any recommended options for long term care insurance? We shopped for policies for my mom recently and there aren’t many good options these days, which is a big change from how LTC policies were 20-30 years ago. The only good options seem to be “be wealthy” or planning to qualify for Medicaid. Estate planning attorneys are really good resources for helping people of modest means create workable contingency plans for long-term care.
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Jul 12, 2023 05:07
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I got paid a dividend in my trad this year that’s about $11. Should I just remove it and suck up the small penalty? Really have no clue how I got a dividend on SPAXX an account that was opened and funded this year I rolled all my traditional bucks over to my 401k a few years ago and already have done my back door Roth this year so I’m maxed there. cheese eats mouse fucked around with this message at 06:18 on Jul 12, 2023 |
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Jul 12, 2023 06:16
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Just move it to the Roth whenever it is convenient and pay the taxes on the $11 next year.
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Jul 12, 2023 06:18
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https://www.etf.com/sections/news/dimensional-seeks-etf-creation-using-vanguard-mutual-fund-model "Dimensional Fund Advisors is seeking permission to create exchange-traded fund shares out of its mutual funds, using a structure that had been exclusively Vanguard Group’s before the asset management behemoth's patent expired this year. ...This would allow the Austin-based company, which manages $93.8 billion in 31 ETFs, to offer the tax benefits of ETFs for its already existing mutual fund products."
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Jul 14, 2023 15:58
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I guess I'm getting old based on the stock/bond ratio my vanguard advisor put me on (80/20). I'm 15 years out from needing to touch it, and I just became fed govt retirement pension eligible this month so I'm comfortable with more risk. I feel like asking "what's your stock/bond ratio" is now a socially acceptable way to ask an older person their age.
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Jul 15, 2023 21:14
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That seems normal for Vanguard. Target 2040 is 80/20 right now. I've moved away from target funds because they are heavier in bonds than I'd like.
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Jul 15, 2023 22:17
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90/10 for life
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Jul 15, 2023 22:33
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Evil SpongeBob posted:I guess I'm getting old based on the stock/bond ratio my vanguard advisor put me on (80/20). I'm 15 years out from needing to touch it, and I just became fed govt retirement pension eligible this month so I'm comfortable with more risk. is that their VPAS service? how much are you paying for that advice?
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Jul 15, 2023 23:11
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I'm at 100% stocks forever
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Jul 15, 2023 23:23
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pmchem posted:is that their VPAS service? how much are you paying for that advice? It's 0.35% for me because I do all index funds (0.40 if you do active managed). I don't have a separate financial advisor. Over half of my retirement funds are TSP, so I just duplicate vanguard portfolio in the TSP. https://investor.vanguard.com/advice/personal-hybrid-robo-advisor
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Jul 16, 2023 03:43
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Evil SpongeBob posted:It's 0.35% for me because I do all index funds (0.40 if you do active managed). I don't have a separate financial advisor. How are you liking VPAS? I currently use Wealthfront for my taxable account so it will do tax loss harvesting for me. I read that VPAS began doing tax loss harvesting - have you noticed it? So far, the tax savings that I reinvest have outweighed the 0.25% AUM fee at Wealthfront.
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Jul 16, 2023 05:19
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I only use them for retirement fund advice and rebalancing. After I retire, we'll be starting non retirement goals.
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Jul 16, 2023 05:31
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Evil SpongeBob posted:I only use them for retirement fund advice and rebalancing. Oh ok. If you don't have a taxable account, wouldn't make sense to see any TLH.
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Jul 16, 2023 06:04
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drk posted:Anyone here use Bondbloxx ETFs? SGOV and these funds serve different purposes. Once you start getting half a year out, that's probably when you need to start thinking about whether you're sure you can hold shares for the entire target duration as interest rates rise and share prices fall. The main alternative to SGOV in ETF form is probably a floating rate treasury fund like USFR or TFLO.
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Jul 16, 2023 07:34
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Evil SpongeBob posted:I only use them for retirement fund advice and rebalancing. I'd be curious if you think that service gives any interesting answers or advice different from what you'd find in the typical answers in this thread. Like, for real I'd like a customer review of VPAS. Fair chance you could save yourself the 0.35%, but if having the advice come from a trusted professional third party changes your behavior then it's probably worth it. It'd also perhaps be worth it if it's somehow adding value in actual tailored advice.
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Jul 16, 2023 15:00
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How do those services work if your 401k is with some other provider? Do they give guidance for the 401k too or just pay attention to what they have control over?
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Jul 16, 2023 15:07
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smackfu posted:How do those services work if your 401k is with some other provider? Do they give guidance for the 401k too or just pay attention to what they have control over? They don’t manage it, but they can offer advice on it. Part of the VPAS service is ability to schedule time with a financial advisor.
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Jul 16, 2023 16:29
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I'm fine with the service. I'd probably get more out of it if I had non retirement accounts. I pay them about $3k a year and I have a retirement portfolio of about $1.7 mil since over half is TSP which I don't pay fees on. Like the previous poster said, I always have an advisor on call and someone to go "yeah, you're fine. Start saving up cash in non retirement." Having 2 boomer parents who really didn't do any planning for retirement made me paranoid and obsessed with making sure I can live comfortably. Unfortunately I have few non retirement assets, so that's the next step with the advisor once I retire from fed govt and figure out down payment options for our getting old house. Edit: Also, I'm a BFC OG. I started the personal finance MEGA THREAD back in 2005 in Ask/Tell. 
Evil SpongeBob fucked around with this message at 18:38 on Jul 16, 2023 |
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Jul 16, 2023 18:36
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$3k a year to manager $1.7 mill isn’t bad in the scheme of things so kudos is really all I got.
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Jul 16, 2023 22:03
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Evil SpongeBob posted:Edit: Also, I'm a BFC OG. I started the personal finance MEGA THREAD back in 2005 in Ask/Tell. I know, hah. that's why I thought your take on VPAS would be especially interesting to hear
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Jul 17, 2023 01:27
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Yeah, frankly it's more psychological than technical. Watching my boomer parents kinda do nothing other than pay off a lovely house and buy guns rather than prepare for being old really affected me. I've always been sort of paranoid that I wasn't saving enough. I started using them about 4 or 5 years ago. I had our IRAs scattered in multiple vanguard funds like vanguard health care and sp500. My retirement portfolio is around 60/40 split between Thrift savings plan and IRA. I'm old enough to have IRAs pre Roth. When I signed up, they just moved me out of all my vanguard specialty funds and into boring total stock and bond market funds. Whatever they do, I match it in my TSP mix. They are doing a little bit of mixing where they're putting the overall bond funds into my wife's 403b -> traditional IRA so we don't get a larger tax hit when we withdraw. So my wife's accounts are like almost 60 percent bonds, but our total portfolio is 80/20 stock bonds. Right now I'm paying for that overall rebalancing and, for me more importantly, someone neutral to tell me to quit worrying and I'm doing great. I know I'll be setting up some non retirement planning as soon as I find a post retirement job. So I can't speak to how they'll be with that until I get to that point. I also have a meeting with an estate lawyer next week and will be using vanguard as co-trustee for my estate. They charge 0.5% up to 5 mil iirc. I lurk in here quite a bit. I can't tell you how blessed I was to have someone tell me at age 21 to start saving for retirement ASAP. I think we had a net worth of 1 mil by age 42. I'm on track to have about 4 mil by the time I think I'll need to touch it plus maybe about 150k in yearly pension payments and lifetime health care coverage (I pay 25% of the insurance). I have no inheritance or family fortune, but have been with the gov/mil since I turned 18. I started my kid's 529 plan the day she got home from the hospital for the same reasons of time advantage. Time is your friend. Start today. Now, non retirement assets? Ugh, that's my next project and in haven't been as good. I also let the credit card sneak up on me. It's about 15k right now. I have more than enough to pay it off, but I'm waiting until I see what my next job is. I also have a 12k car note on a car worth 40k. But my VA payment is more that the monthly payment for that. No other debt. I probably have 50k net in non retirement assets. Next project is to plan for retirement housing. I currently rent. 
Evil SpongeBob fucked around with this message at 03:02 on Jul 17, 2023 |
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Jul 17, 2023 02:49
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I know I'm missing something here, but I don't really understand $SGOV. I've had $10k in this ETF for two months and it's slightly down - I know the price fluctuates, but no dividends have accrued. Meanwhile, the treasury bonds I bought at the same time have steadily gone up in value. I know they are two different things, I just don't know how a treasury bond ETF like SGOV works. Do the dividends all come in once a quarter or something?
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Jul 17, 2023 17:19
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A quick Google says dividends are paid monthly on SGOV. You should have received dividends. If you didn't notice cash come in, could you be on a drip (that is an automatic reinvestment plan, look at the number of units now vs. what you bought).
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Jul 17, 2023 17:28
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Since it's an ETF you can only buy whole shares, so you don't have the option to reinvest dividends. The dividends appear in your cash account in your brokerage. Here's the dividend payment schedule YTD: https://www.nasdaq.com/market-activity/etf/sgov/dividend-history
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Jul 17, 2023 17:44
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Good point. You can reinvest automatically but the leftover change always lands as cash, so you should have seen something.
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Jul 17, 2023 18:08
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KYOON GRIFFEY JR posted:Since it's an ETF you can only buy whole shares, so you don't have the option to reinvest dividends. The dividends appear in your cash account in your brokerage. Here's the dividend payment schedule YTD: https://www.nasdaq.com/market-activity/etf/sgov/dividend-history Some brokers (Fidelity, at least) allow for fractional ETF purchases and dividend reinvestment on them.
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Jul 17, 2023 18:18
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SGOV pays out dividends at the start of every month. The dividend amount is recorded on the first open market day of the month, and then gets paid/appears in your account as cash about a week later. The amount of dividends it pays out resets the share price back down to ~$100. Over the course of the month you'll see the share price slowly increase towards the dividend amount/date, then reset back down as the dividend is recorded/paid. Thus over the long term you would not expect any significant change in the share price. It's a pretty cool product. An interesting alternative to money market funds.
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Jul 17, 2023 18:25
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KYOON GRIFFEY JR posted:Since it's an ETF you can only buy whole shares, so you don't have the option to reinvest dividends. The dividends appear in your cash account in your brokerage. Here's the dividend payment schedule YTD: https://www.nasdaq.com/market-activity/etf/sgov/dividend-history Ohh that explains it. Thanks.
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Jul 17, 2023 22:32
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Anyone have a take on including international bonds in long term taxable portfolios? I have a small allocation but I'm thinking about dumping it. Pros: More diversification Cons: Lower yield than US bonds No state tax exemption (significant additional boost to tax equivalent yield for me in CA) Higher expenses
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Jul 20, 2023 19:27
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I have an inherited IRA with a relatively small balance. It's currently all invested in VTSAX and has returned almost 11% since I received the IRA about 3 years ago. However, I'm wondering if I should move the funds to SGOV or something similar that will provide a steady return while I begin to draw down the balance over the next ~7 years. Does anyone have any thoughts on the best strategy here? Thanks!
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Jul 20, 2023 20:41
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| # ? May 17, 2024 00:40 |
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If I had a specific drawdown schedule I'd talk to an advisor about laddering out treasuries to be held to maturity to avoid market/interest rate risk. SGOV is investing in securities on the short end of the curve, which are producing very well compared to normal. That means that, when/if things get back to normal, it might produce less than longer-term maturities. As well, in the event rates drop, you won't be able to take advantage of any locked-in appreciable interest rates. As well, investing in almost any bond fund is going to, probably, factor in market prices for those securities. That's fine normally, but since you KNOW you'll be selling at certain points in the future and preservation of capital is probably important, you'd probably be better served looking at longer-term securities to be held to maturity. jokes fucked around with this message at 21:30 on Jul 20, 2023 |
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Jul 20, 2023 21:26
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