Oh, terrible news - so sorry. What a thoughtful wife/mom you are, getting the family ready for future possiblity of your husband being alone.
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So sorry to hear this. It sounds like youāre handling things better than I would be.
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Thank you for your kind words. Itās been an intense few months involving mothballing the Massachusetts house and moving to a rental halfway across the country to where the kids live. Theyāve been brilliant and are helping so much. Itās lovely to spend time with them but I miss my home!
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Well, it appears that I get a ādo over.ā Late last year/early this year I considered moving some of my retirement money to try and avoid some of the turbulence I expected. I failed to execute.
Now I am VERY close to my high with investments. I have NEVER tried to time the market, and Iāve always been relatively conservative/middle of the road (I got up to about 60% stocks over time because the market was doing so well, and I just let it ride, but Iāve never had higher than that, even though I probably should have).
Now Iām trying to decide what allocation is good for me, specifically what % should be invested in stocks. Up until now Iāve had very little in international funds.
Oh how I wish I had a crystal ball.
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Good job. As John Bogle was fond of saying, āstay the courseā. The average investor usually doesntā fare well trying to time the market.
As to equity portion of your AA, whatever % allows you to sleep well at night and not kick yourself for not timing the market.
As to international ā one of the most hotly contested issues on bogleheads. Many say, āno needā, while others believe international equities are an absolute necessity.
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No matter the quality? You donāt care if a garbage bag may rip as you carry it out of the house or rather has high quality rip resistant material ? Or if the shampoo leaves your hair smelling odd? Or if tissues are scratchy and likely to worsen your red nose when you have a cold instead of soft ? These are quality of life issues to me. Canāt imagine sacrificing them for a few cents.
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For fixed income investors, you can now buy munis on sale. Iām buying 4% coupons in the high 80s. You can get 5% like LAX airport under 100.
Stop the ridiculous talk of the exemption on federal and state taxes being eliminated. It is not a part of the big beautiful tax bill. Why ? Infrastructure investment would collapse. States/cities would be paying 6-7%+ and not what they are now. Munis wouldnāt stop. Rates would simply reset.
As for a cliff on pricing, you get paid 100 when they mature.
Investment grade munis donāt default. So the fatalistic talk here is silly.
Or simply buy government agency bonds at nearly 6%. Like Federal Farm Credit Bureau or Federal Home Loan. AA+ rated like the U.S. Govt - and you simply buy taxable so you neednāt worry about an exemption removal (of which thereās really no worry). The only reason it came up is the feds need to find ways to raise money. Who owns munis? The wealthy. Not the group pols are looking to disservice.
If you are a fixed income person and not all are - but if youāre targeting a 6% plus tax equivalent yield, itās an easy win.
If you like equities, there are so many indexes - growth, dividend, value, etc - everyone can find what they want.
I want cash flow. Growth doesnāt pay my bills. Others seek growth. As long as your cash flow is more than your expenses, then you have choices to make whatās right for you.
Iām conservative. I seek cash flow and the bond markets are the best for buying that theyāve been in years. You can find that in equities as well. Or like many of us in combination of both. Bond funds though - not a place Iād go.
Good luck to all.
Youāre buying muniās at a discount? Youāre aware of the tax consequences right?
Donāt be me. 
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Munis have the same tax consequences as they have since 1913. And itās not changing.
Nor is it even in the big beautiful bill. Guess what - itās the republicans against it too. They have infrastructure projects and that means jobs.
See my full message above.
You know why munis are on sale ?
Because the big beautiful is going to raise our debt significantly. Combined with tariffs, there is fear we will have inflation and higher rates.
Itās beautiful for a fixed income investor. But as noted if you worry about the exemption , there are agency bonds. The return wonāt be as great but 6% pre tax isnāt shabby. You canāt get the extended calls on these which is the issue.
The overall fatalism toward munis is not necessary.
Itās funny that big beautiful wonāt raise our debt - if thatās the case, why did they put a $4 trillion debt floor increase ?
Prices will be deflated for a while - and itās a beautiful thing !!! Pay 87 today. Earn $400 a year per 10k coupon so thatās a current tax free yield of 4.6% tax free. Get paid back 100 (so a $13 profit) when you reach maturity.
Are you aware of the de minimis tax on munis?
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Itās not relevant. I just explained.
You are buying tax free income.
The $13 (when at maturity) would be taxed at cap gain rates.
Your current yield or actual yield is 4.6% federal tax free. If you live in a tax free state or buy a bond issued by your state, itās state tax free too.
I did not say the gain was not taxable like other gains.
You are buying tax free cash flow. The gain is a bonus.
If you are below the deminimis boundary, itās still not a huge hit. In fact, some argue the price deflates even more.
Itās not a reason not to buy. But itās why funds like bonds at premiums, not discounts. They trade. Gotta earn their fees. Bond investors should not.
Btw - if thatās a concern for you, simply buy a higher coupon, higher priced bond. I like discounts because I can get my next buy with less money vs waiting. If someone buys a 4.5+ coupon, thereās not going to be the possibility of deminimis.
I think with any investment, it is knowing the market. Some of my investments have a portion of international - and I have held those long term with tracked LT return information.
The markets are ānervousā for a lot of reasons.
There is an awesome amount of reinvestment in US manufacturing, and this is stimulating things here in the US. Again, to me with close to retirement and retirement minded investments, only a small portion should ever be with single stock (one company).
We had seen some history with that, with a local company which would have stock swing pretty wildly and some would buy low and sell high, until that didnāt āworkā anymore.
We have so many options now with indexed stock account and other vehicles - and lots of information at the tips of our fingers on the internet.
Just wondering if your username CFP was because you are a certified financial planner?
If so you would have completed a CFP Board-approved education program, pass the CFP exam, demonstrated relevant professional experience, and met certain ethical standards.
Assuming this to be the case thanks for sharing your professional first hand experience.
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Yes. But Im not a financial advisor.
Neither am I, but I have held a series 7 license for over 30 years and a 24 āprincipalsā license for 20+ years but still appreciate and learn from your insights. I fully recognize that in spite of being a career I Banker (who has at one time had hundreds of RRs working for them), I can learn from listening to others.
Thanks for sharing.
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The 24 was painful. I passed the bar with ease, 96 on the series 7, CFP (passed without taking the classes - exempt),
72% on the 24. Barely passed!
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To be factually accurate for those less familiar the bigger tax hit isnāt if you are below the de minimis threshold it kicks in if you are above it.
To be specific, if the market discount is equal to or greater than the de minimis threshold, the gain is generally taxed as ordinary income(typically at a higher rate).
The de minimis threshold is calculated as 0.25% of the face value for each full year from the purchase date to maturity .
Meaning for example, a bond with 20 years left to maturity hits the max discount threshold at a 5 point discount. A $13 dollar discount would be taxed as ordinary income.
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lol. So interesting. Is there any sort of quality you would pay more for than the ā cheapā version?
Man, thereās a big difference between Level 5 and Level 6 ($3M to $15M).
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