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Re: John Bogel: The Problem with 401(k)s

Thanks....missed it
by BruceM
Mon Jun 17, 2013 1:07 pm
 
Forum: Investing - Help with Personal Investments
Topic: John Bogel: The Problem with 401(k)s
Replies: 2
Views: 1031

John Bogel: The Problem with 401(k)s

An interview with Christine Benz as a sort of clarification of what he said on the recent Frontline Special

http://www.morningstar.com/cover/videoc ... UTUALFUNDS

BruceM
by BruceM
Mon Jun 17, 2013 3:06 am
 
Forum: Investing - Help with Personal Investments
Topic: John Bogel: The Problem with 401(k)s
Replies: 2
Views: 1031

Re: Tax Question

If a person is 65 years old and has 16k income from Social Security how much can they have in Vanguard Target Retirement 2015 Fund (VTXVX) before they would pay taxes? This is all taxable money. Social Security is there only income. Provisional Income (PI), used to calculate how much of one's SS be...
by BruceM
Fri Jun 14, 2013 8:21 pm
 
Forum: Personal Finance (Not Investing)
Topic: Tax Question [Social Security income and fund distributions]
Replies: 6
Views: 486

Re: Using SIMPLE IRA for First Time Home Buyer Downpayment

MMc7 Because you have had contributions made to the SIMPLE over 2 years ago, you may roll over the balance to any other IRA custodian you wish without tax or penalty....and from your description, the sooner, the better. Yes, the Franklin Growth Fund (FKGRX) has underperformed both the S&P 500 an...
by BruceM
Fri Jun 14, 2013 4:50 pm
 
Forum: Personal Finance (Not Investing)
Topic: Using SIMPLE IRA for First Time Home Buyer Downpayment
Replies: 23
Views: 1425

Re: 457b question

Twinsfan (is that as in Minnesooootah?) Yes...when you get within 3 years of the plan's full retirement age, you may contribute up to another $17,500 (or whatever the max is for that year), providing you have at least that much in cumulative past year UNDER-contributions. Otherwise, at age 50 and ol...
by BruceM
Tue Jun 11, 2013 3:49 pm
 
Forum: Investing - Help with Personal Investments
Topic: 457b question
Replies: 20
Views: 1120

Re: Circling vultures...advisors looking for access to resid

Neurosphere What is your principal interest in continuing a dialogue with this unsolicited e-mail? This is a guess, but it sounds like you would like to have your residents educated in the fundamentals of personal finance. But a salesman is not going to provide this. If you are interested in educati...
by BruceM
Tue Jun 11, 2013 1:54 pm
 
Forum: Personal Finance (Not Investing)
Topic: Circling vultures...advisors looking for access to residents
Replies: 109
Views: 7974

Re: 457b question

I just got the email reply from the plan administrator for my 457b. They said $17,500 combined is the max amount that can go into my account (2013 example)... So, $17,500 - 3.5% annual match = the total amount I can contribute. That's right. The Government 457(b)'s maximum contribution from all sou...
by BruceM
Tue Jun 11, 2013 1:25 pm
 
Forum: Investing - Help with Personal Investments
Topic: 457b question
Replies: 20
Views: 1120

Re: Investing at retirement

I like the list. Like jack Benny "I'm thinking I'm thinking " Its all in tax sheltered retirement funds so the Required minimum distribution is also an issue. Professor While you're thinking...... That your investments are all in a tax deferred account(s) that will be subject to RMDs real...
by BruceM
Tue Jun 11, 2013 12:25 pm
 
Forum: Investing - Help with Personal Investments
Topic: Investing at retirement
Replies: 16
Views: 1794

Re: Investing at retirement

professor What are your primary objectives for this money? I can kind of infer them, but if you make them clear, this would drive your ultimate investment choices. Examples of investment goals might include: 1. Safety of principal....if you will need these dollars in the future and you do not want t...
by BruceM
Mon Jun 10, 2013 2:56 pm
 
Forum: Investing - Help with Personal Investments
Topic: Investing at retirement
Replies: 16
Views: 1794

Re: Need fee based financial planner in Charleston, SC

My SIL is inheriting a substantial sum of money from his father's estate. My daughter mentioned the idea of getting advice from a financial planner which I completely agree with. Both are quite competent with their finances but this seems to be a good time to get advice. I would greatly appreciate ...
by BruceM
Mon Jun 10, 2013 1:04 pm
 
Forum: Personal Finance (Not Investing)
Topic: Need fee based financial planner in Charleston, SC
Replies: 4
Views: 407

Re: Portland, Oregon Meeting?

Our next meeting will be Tuesday, June 11 at 6:30 at Lings Garden Restaurant, 915 NW 21st in Portland (21st and Lovejoy)

Hope this catches you on time, and hope to see you there.

BruceM

Edit: woooops...didn't see the response. Sorry for the repeat :-)
by BruceM
Sun Jun 09, 2013 8:00 pm
 
Forum: Local Chapters and Bogleheads Community
Topic: Portland, Oregon Meeting?
Replies: 70
Views: 14847

Investing in Foreign Bonds

Rick Ferri, Bill Bernstein and other CFAs offer their short-version views on investing in foreign debt.

http://www.oregonlive.com/finance/index ... cart_river

BruceM
by BruceM
Sun Jun 09, 2013 2:04 pm
 
Forum: Investing - Help with Personal Investments
Topic: Investing in Foreign Bonds
Replies: 14
Views: 1822

Re: Thanks, Bogleheads, from Mr. Bogle

Jack Try this....Google something like "SEC FINRA fines and penalties Merrill Lynch" and see what comes up. Do the same, except insert American Express or LPL. You'll see page after page after page of press releases of the multi-million dollar fines and penalties assessed by the SEC and FI...
by BruceM
Mon May 13, 2013 2:09 pm
 
Forum: Investing - Theory, News & General
Topic: THANKS, BOGLEHEADS, FROM JACK BOGLE
Replies: 39
Views: 5156

Re: Fidelity has the best customer service I know of

My first foray into brokerage services in 1997 was with American Express, who offered 20 free trades/yr (or something like that), which then the average trading cost for the 'discounters' was about $25 as I recall. So I went with AE. What a disaster. Almost every monthly statement had an error on it...
by BruceM
Mon May 13, 2013 1:48 pm
 
Forum: Personal Finance (Not Investing)
Topic: Fidelity has the best customer service I know of
Replies: 57
Views: 3501

Re: Retiree poll: Expenses in retirement

I do this all the time for clients....and from this, a couple of points: 1. Many will not realize they are no longer paying FICA tax, cost sharing medical insurance or contributing to their retirement plan, because these expenses came out before they got their paycheck. IOW, although real, they just...
by BruceM
Fri May 10, 2013 8:07 pm
 
Forum: Personal Finance (Not Investing)
Topic: Retiree poll: Expenses in retirement
Replies: 24
Views: 3151

Re: Do the Bogleheads here tithe based on net or gross salar

Hopefully, we will hear from a spokesperson for the [religion removed --admin LadyGeek], who are the experts for a questions like this.

BruceM
by BruceM
Thu May 02, 2013 11:40 pm
 
Forum: Personal Finance (Not Investing)
Topic: Do the Bogleheads here tithe based on net or gross salary?
Replies: 49
Views: 3406

Re: impressive rate of return when purchasing home

This is the OP. Thank you for all discussion you're very welcome....and thank you for taking the time to show your appreciation! I used the last 23 year average annualized return of VBMFX as this is a conservative and long term rate of return available in the marketplace. Most of this period's retu...
by BruceM
Wed Apr 24, 2013 1:59 pm
 
Forum: Personal Finance (Not Investing)
Topic: impressive rate of return when purchasing home
Replies: 38
Views: 2882

Re: Frontline--The Retirement Gamble

Most of what this special covers is already well known by bogelheads and Diehards. Its just good to see it so widely broadcast. I particularly liked the explanation of how our current situation has evolved. In the 80s and 90s, with 12% annualized returns being the 'norm', who cared about this expens...
by BruceM
Wed Apr 24, 2013 1:42 pm
 
Forum: Investing - Theory, News & General
Topic: Frontline--The Retirement Gamble
Replies: 318
Views: 33144

Re: impressive rate of return when purchasing home

I have done this calc many times. If I'm reading you correctly, you are doing a simple cash flow differential of owning with monthly all-in expenses vs. monthly renting. Unfortunately, its not nearly that easy. The closing costs and any other one-time capital costs along the way are negative cash fl...
by BruceM
Wed Apr 24, 2013 12:33 pm
 
Forum: Personal Finance (Not Investing)
Topic: impressive rate of return when purchasing home
Replies: 38
Views: 2882

Re: [stopping] Telemarketers

On our cell phones, we've installed the free app 'Call Control', which will automatically reject any calls from known spammers or robocallers and any caller whose caller ID is 'blocked', and gives me the option of immediately directing to my voicemail any calls that are not on my directory. We've on...
by BruceM
Wed Apr 24, 2013 2:31 am
 
Forum: Personal Finance (Not Investing)
Topic: [stopping] Telemarketers
Replies: 29
Views: 1662

Re: Questions about Fee-Only Financial Advisor

I agree with the foregoing comment that if you're not going to take the time to learn the fundamentals....and many intelligent individuals do not.....you should seek out the services of a fee-only registered investment advisor. There are two sources I would search. First, is the Garrett Financial Pl...
by BruceM
Wed Apr 24, 2013 2:13 am
 
Forum: Investing - Help with Personal Investments
Topic: Questions about Fee-Only Financial Advisor
Replies: 18
Views: 1722

Re: Any experience with Good Harbor Financial?

Your father is a prime candidate for the likes of "Good Harbor Financial", of which I'm sure there are hundreds if not thousands of such 'advisors' popping up to "serve the needs" of the growing number of baby boomers headed into retirement with 401(k) + IRA balances they are now...
by BruceM
Mon Apr 22, 2013 4:26 pm
 
Forum: Investing - Help with Personal Investments
Topic: Any experience with Good Harbor Financial?
Replies: 11
Views: 2584

Re: Can SEP IRAs be combined with a traditional IRA?

Yes, but it is still a SEP contribution. That is, it must either comply with the rules of the 5305-SEP or the SEP-Plan as written (for a custom SEP). And keep in mind, that you (if self employed) or your employer contribute to your SEP has nothing to do with your ability to contribute to your TIRA a...
by BruceM
Thu Apr 18, 2013 1:30 pm
 
Forum: Investing - Theory, News & General
Topic: Can SEP IRAs be combined with a traditional IRA?
Replies: 3
Views: 448

Re: Why do investors chase dividend paying strategies

A second strategy would be to substitute a portfolio of blue-chip stocks with generous dividends for an equivalent high-quality U.S. bond portfolio. Many excellent U.S. common stocks have dividend yields that compare very favorably with the bonds issued by the same companies—and their dividends are...
by BruceM
Mon Apr 15, 2013 1:27 pm
 
Forum: Investing - Theory, News & General
Topic: Why do investors chase dividend paying strategies
Replies: 439
Views: 34015

Re: Why do investors chase dividend paying strategies

Consider that the dividends are always taxed as income. With retired households, qualifying dividends coming out of taxable accounts will usually not be taxed. Dividends (of all types) in tax deferred accounts are not taxed until withdrawn and then as ordinary income. Because income investing is on...
by BruceM
Sun Apr 14, 2013 2:52 am
 
Forum: Investing - Theory, News & General
Topic: Why do investors chase dividend paying strategies
Replies: 439
Views: 34015

Re: Why do investors chase dividend paying strategies

This is not an issue of how big the total earnings are but of how dependable a part (the dividend part) of those earnings is. This is short of a guarantee but it is a lowered risk. This lowered risk might come at the cost of overall returns (or not) but it might be a fair cost for the benefit. That...
by BruceM
Wed Apr 10, 2013 6:25 pm
 
Forum: Investing - Theory, News & General
Topic: Why do investors chase dividend paying strategies
Replies: 439
Views: 34015

Re: Why do investors chase dividend paying strategies

Like I said previously Larry, you will understand that income really is income once you get to retirement and have to spend that income. Spending income that doesn't erode your principal in a down market is quite preferable to selling LOW, especially when you have no money to BUY later on. fd Why d...
by BruceM
Tue Apr 02, 2013 8:17 pm
 
Forum: Investing - Theory, News & General
Topic: Why do investors chase dividend paying strategies
Replies: 439
Views: 34015

Re: Why do investors chase dividend paying strategies

I'm not FinancialDave, but.... Um... is this really the example you want? The assumptions appear to be: 1. Non-dividend paying portfolio drops 40%, then has 0% total return forever 2. Dividend paying portfolio drops 40%, then INCREASES dividend to ~6.66% to keep paying out a $4,000/year dividend. #1...
by BruceM
Mon Apr 01, 2013 2:37 pm
 
Forum: Investing - Theory, News & General
Topic: Why do investors chase dividend paying strategies
Replies: 439
Views: 34015

Re: Why do investors chase dividend paying strategies

To those that are not in retirement, or have not studied retirement withdrawal strategies they may not get it, but there is a big difference between accumulation phase strategies, as compared to withdrawal strategies. During accumulation you should be looking to maximize your total return, but duri...
by BruceM
Sun Mar 31, 2013 2:17 pm
 
Forum: Investing - Theory, News & General
Topic: Why do investors chase dividend paying strategies
Replies: 439
Views: 34015

Re: Why do investors chase dividend paying strategies

Sorry to be late to this discussion. I have been an income investor for 13 years. I know this space reasonably well. The income produced by the investments I hold have provided reliable retirement income over this period. My primary objective is reliable income. Capital preservation is not one of my...
by BruceM
Wed Mar 27, 2013 2:21 am
 
Forum: Investing - Theory, News & General
Topic: Why do investors chase dividend paying strategies
Replies: 439
Views: 34015

Re: Market Timing

We had a local bogelheads quarterly meeting earlier this month, with a newly retired, first time attendee to our meeting, who asked much the same question you are asking. It was suggested to this individual that if he is interested in learning the best approach to managing retirement savings, that h...
by BruceM
Mon Mar 25, 2013 2:28 pm
 
Forum: Investing - Help with Personal Investments
Topic: Market Timing
Replies: 11
Views: 1080

Re: solo 401k "plan contribution rate"

The 'employer' participation % is the % of salary the plan requires be contributed to employees accounts. You don't mention if your proprietorship has employees, but whatever the participation % is, you'd have to contribute it to all non-excluded employees. The maximum rate is 25%. However, for the ...
by BruceM
Mon Mar 25, 2013 2:01 pm
 
Forum: Investing - Help with Personal Investments
Topic: solo 401k "plan contribution rate"
Replies: 5
Views: 659

Re: Surtax of 3.8% on Net Investment Income

It is also noteworthy that Return of Capital (ROC) from the likes of REITs and MLPs will also not be considered investment income for the purposes of this surtax. However, the income portion of an annuity, it seems, will. BruceM This is true of all income tax. It has nothing to do with the so-calle...
by BruceM
Tue Mar 19, 2013 3:38 am
 
Forum: Personal Finance (Not Investing)
Topic: Surtax of 3.8% on Net Investment Income
Replies: 29
Views: 3138

Re: Surtax of 3.8% on Net Investment Income

It is also noteworthy that Return of Capital (ROC) from the likes of REITs and MLPs will also not be considered investment income for the purposes of this surtax.

However, the income portion of an annuity, it seems, will.

BruceM
by BruceM
Tue Mar 19, 2013 2:45 am
 
Forum: Personal Finance (Not Investing)
Topic: Surtax of 3.8% on Net Investment Income
Replies: 29
Views: 3138

Re: 457 advice for not a knowledgable investor

Trudy If her gov employer is like most I've come across, the "401(a)" plan is an employer funded money purchase plan, where the employer will contribute a fixed % of her salary to an account and then give her a few broad investment options, such as a "conservative growth" or an &...
by BruceM
Thu Mar 14, 2013 3:42 pm
 
Forum: Investing - Help with Personal Investments
Topic: 457 advice for not a knowledgable investor
Replies: 17
Views: 932

Re: Hot water heater question

It sounds like the WH has failed. The most common cause of a bottom leak is rust pinholes in the bottom of the tank, particularly if the water has a high mineral content. As to the replacement, the cost will depend on the size (in gallons) the efficiency rating (insulation) and whether it is electri...
by BruceM
Thu Mar 14, 2013 1:45 am
 
Forum: Personal Finance (Not Investing)
Topic: Hot water heater question
Replies: 34
Views: 2228

Re: Treat SS and Pension as Bond like?

I think treating fixed/variable income in retirement as some sort of bond is interesting, but unnecessarily complicates your asset management. Sources of reliable and recurring income, whether from a single premium immediate annuity, a pension, ,Social security, RMDs from an inherited IRA, distribut...
by BruceM
Thu Mar 14, 2013 12:47 am
 
Forum: Investing - Help with Personal Investments
Topic: Treat SS and Pension as Bond like?
Replies: 18
Views: 1730

Re: Hot water heater question

3 questions:
How badly is it leaking?
Where is it leaking?
How old is the WH?

BruceM
by BruceM
Wed Mar 13, 2013 10:52 pm
 
Forum: Personal Finance (Not Investing)
Topic: Hot water heater question
Replies: 34
Views: 2228

Re: 457 advice for not a knowledgable investor

Gov 457(b) plans almost never have an employer match, so all contributions would come from her. I generally avoid these, due to their typically high expenses and poor investment choices. As you've described her, her AGI may be low enough to be able to make a deductible traditional IRA contribution, ...
by BruceM
Fri Mar 08, 2013 5:14 am
 
Forum: Investing - Help with Personal Investments
Topic: 457 advice for not a knowledgable investor
Replies: 17
Views: 932

Re: ESPP question

There are a few other pieces of information that would be inportant in your decision process for contributions to the ESPP. Is your employer private or publicly traded? If private, there may be restrictions on the timing of the exercise and immediate stock sale. What are the dates for determining th...
by BruceM
Fri Mar 08, 2013 4:52 am
 
Forum: Investing - Help with Personal Investments
Topic: ESPP question
Replies: 9
Views: 674

Re: My experience with a financial advisor

Annually, I'm asked to speak to the local University graduating ROTC Cadets, on matters of personal finance. The simple aphorism I pass along is that "any unsolicited contact you receive for any financial good or service is always answered with the kind word "NO THANK YOU" immediately...
by BruceM
Thu Mar 07, 2013 8:25 pm
 
Forum: Personal Finance (Not Investing)
Topic: My experience with a financial advisor
Replies: 43
Views: 3243

Re: Portland, Oregon Meeting?

I live in Corvallis, and would be interested in attending a get-together. Cheers, Dave Dave Here is the info on our quarterly get together next week BruceM ---------------------------------------------------------- Hello Diehards, Our next meeting is coming up in two weeks: Tuesday, March 12, 6:30P...
by BruceM
Thu Mar 07, 2013 7:25 pm
 
Forum: Local Chapters and Bogleheads Community
Topic: Portland, Oregon Meeting?
Replies: 70
Views: 14847

Re: Estimating Retirement Expenses

I've gone through this exercise many times with others. From my experience doing this, here's what I'd suggest. Step 1: determine if your lifestyle post retirement will be substantially the same as your pre-retirement lifestyle. For most, the differences will be relatively minor, at least in the fir...
by BruceM
Wed Mar 06, 2013 3:09 pm
 
Forum: Personal Finance (Not Investing)
Topic: Estimating Retirement Expenses
Replies: 21
Views: 1529

Re: does the employer report gross salary to the IRS?

I think the term 'gross income' is what is confusing. The IRS uses the term 'gross income', sometimes also called 'total income', to refer to all forms of income that are subject to federal income tax, and are totaled and reported on line 22 of form 1040 (2012). Line 7 only refers to net income from...
by BruceM
Tue Mar 05, 2013 6:55 pm
 
Forum: Personal Finance (Not Investing)
Topic: does the employer report gross salary to the IRS?
Replies: 9
Views: 650

Re: Savings for long term care

Professor What you ask is relevant to all those of us who recognize the importance of plannning for long term care but will not take the 'rat hole' risk of LTC insurance. Put another way, "all need a long term care plan but not necessarily long term care insurance" (the insurance people ha...
by BruceM
Mon Mar 04, 2013 3:59 pm
 
Forum: Personal Finance (Not Investing)
Topic: Savings for long term care
Replies: 2
Views: 275

Re: Long term capital gains tax question

In taxable accounts, long term capital gains and qualifying dividends are now Federally taxed at the 0% rate for those married filing jointly whose taxable income (line 43 of the 2012 form 1040), which will include the capital gains and qualifying dividends, is less than $72,500 for 2013 (the top of...
by BruceM
Sun Mar 03, 2013 8:35 pm
 
Forum: Personal Finance (Not Investing)
Topic: Long term capital gains tax question
Replies: 5
Views: 720

Re: Is 35/34 too young for long-term care insurance?

As a risk to your future savings, the high cost of extended skilled nursing service is a financial risk like any other household risk, and LTCi is one way to manage it. But its not the concept of this form of insurance and when to start it that should concern you about this form of insurance right n...
by BruceM
Sun Mar 03, 2013 2:30 am
 
Forum: Personal Finance (Not Investing)
Topic: Is 35/34 too young for long-term care insurance?
Replies: 132
Views: 5001

Re: 401k HCE and future part-time employment plan

While part-time I still will be working > 1000 hours/yr so if I understand your answer correctly I'm still be subject to HCE testing and if I exceed the income limit in this year I will have my ability to contribute to the 401k plan reduced next year. Yes. If you exceed the HCE salary threshold thi...
by BruceM
Fri Feb 22, 2013 7:28 pm
 
Forum: Personal Finance (Not Investing)
Topic: 401k HCE and future part-time employment plan
Replies: 3
Views: 360

Re: Top Hat DB Cash Balance Plan on top of 401K?

What would be the point of managing the investments? Brian In a private pension plan, each year the employer MUST make a contribution to the plan. Poor investment performace will make the actuarial present value smaller than it should be (underfunded), meaning the employer will have to make a great...
by BruceM
Fri Feb 22, 2013 7:14 pm
 
Forum: Investing - Help with Personal Investments
Topic: Top Hat DB Cash Balance Plan on top of 401K?
Replies: 17
Views: 1365
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