Search found 2457 matches

by Dale_G
Sat Aug 01, 2015 12:34 am
Forum: Investing - Theory, News & General
Topic: Financial Advisor v. Bogle Approach?
Replies: 27
Views: 1385

Re: Financial Advisor v. Bogle Approach?

Keep in mind Jimmer, that an advisor should always be able to come up with a list of 10 to 25 funds that have outperformed the market over the past 3, 5 and 10 years. He will come up with that list by looking to see what funds have outperformed in the past. It is extremely unlikely that he recommend...
by Dale_G
Mon Jul 27, 2015 3:53 pm
Forum: Investing - Theory, News & General
Topic: Variable Option For Annuitizing a Vanguard Annuity
Replies: 3
Views: 361

Re: Variable Option For Annuitizing a Vanguard Annuity

The variable option was available to me but I chose not to use it. I am 78 years old and am 70% equities, 29.5% bonds and 0.5% cash. For tax efficiency reasons I hold all equities in taxable accounts - and only bonds in deferred accounts such as the VA. My choice was a guaranteed 4% return rather th...
by Dale_G
Mon Jul 27, 2015 12:06 pm
Forum: Investing - Theory, News & General
Topic: Variable Option For Annuitizing a Vanguard Annuity
Replies: 3
Views: 361

Re: Variable Option For Annuitizing a Vanguard Annuity

Norton, except for saying that this is "mad money" you didn't provide much any information about what funds you intend to hold in the annuity, your other holdings, your tax situation, or your long term objectives for the money in the annuity. As far as the lump sum is concerned, I am sure ...
by Dale_G
Tue Jul 21, 2015 3:00 pm
Forum: Investing - Help with Personal Investments
Topic: Annuities and taxes
Replies: 4
Views: 517

Re: Annuities and taxes

Minsk, as long time annuity owner (now annuitized) and in a similar tax situation, I cannot imagine how any annuity would be of much benefit to you. Since you seem concerned about taxes, you are probably thinking of a Variable Annuity to avoid current taxes. The problem for you is that, even with a ...
by Dale_G
Sat Jul 18, 2015 10:54 pm
Forum: Personal Finance (Not Investing)
Topic: I need a loan! Or maybe a better plan...
Replies: 18
Views: 1778

Re: I need a loan! Or maybe a better plan...

You cannot use an IRA as collateral for a loan. It is a "prohibited" transaction and any part that is pledged is deemed a distribution.

Dale
by Dale_G
Wed Jul 15, 2015 11:07 pm
Forum: Investing - Theory, News & General
Topic: Where do you put your cash?
Replies: 64
Views: 7826

Re: Where do you put your cash?

I guess I am not a fan of cash. Over my 14 years of retirement, cash has averaged less than 2% of the portfolio - and today it amounts to less than 0.6%. I just can't get my head around loaning (or storing) cash for an expected return less than the rate of inflation. Breadwinners, particularly those...
by Dale_G
Wed Jul 15, 2015 7:11 pm
Forum: Investing - Help with Personal Investments
Topic: All Eggs in One Basket?
Replies: 20
Views: 2388

Re: All Eggs in One Basket?

I have had almost all of my money at Vanguard for the past 33/35 years. I see no reason to use additional fund companies or brokers.

Dale
by Dale_G
Tue Jul 14, 2015 1:22 pm
Forum: Investing - Help with Personal Investments
Topic: 70 Years Old. Help with Retirement Income
Replies: 8
Views: 876

Re: 70 Years Old. Help with Retirement Income

Basically your friend is in pretty good shape. The annuity - and the terms of the contract are of real importance though. You said the annuity has come due, but you didn't say in what manner it has come due. In most cases a VA would not come due unless a date for annuitization was selected on the in...
by Dale_G
Tue Jul 14, 2015 12:43 pm
Forum: Investing - Help with Personal Investments
Topic: What to do about Mom's Variable Annuity?
Replies: 4
Views: 398

Re: What to do about Mom's Variable Annuity?

Since this annuity is now about 17 years old, there will be no "surrender" fees to Putnam. Mom can roll the proceeds of the annuity into her Vanguard IRA without any penalty - and she will be much better for it. Follow Jack FFR1846's advice. Call Vanguard. Mom will save money and simplify ...
by Dale_G
Thu Jul 09, 2015 1:20 pm
Forum: Investing - Help with Personal Investments
Topic: [TLH] VG does it again !!!, Chooses FIFO for Cost basis :-(
Replies: 9
Views: 1202

Re: [TLH] VG does it again !!!, Chooses FIFO for Cost basis :-(

livesoft wrote: And you could, too, surely as the Sun rises in the east.


At least until the magnetic poles flip, in which case the sun will rise in the west.

Dale
by Dale_G
Sun Jul 05, 2015 10:18 pm
Forum: Investing - Theory, News & General
Topic: Bill Gross' July Outlook: "It never rains in California"
Replies: 6
Views: 2398

Re: Bill Gross' July Outlook: "It never rains in California"

I am always entertained by Bill's blurbs, but I wouldn't move a dime based on his semi-prognostications. That said, I'll be a ready if a bond liquidity crunch comes to pass.

Volatility is opportunity.

Dale
by Dale_G
Sun Jul 05, 2015 4:11 pm
Forum: Investing - Theory, News & General
Topic: What is the Duration of Your Bond Portfolio? And Why?
Replies: 61
Views: 5629

Re: What is the Duration of Your Bond Portfolio? And Why?

Weighted duration = 6.43 years. I am 70% equities and 30% bonds. Of the bonds, 20% is in high yield and emerging markets funds. The rest is about evenly divided between treasuries and corporates with some muni's tossed in. I agree that CD's are good for a portion of the bond allocation, but even the...
by Dale_G
Thu Jul 02, 2015 3:38 pm
Forum: Investing - Help with Personal Investments
Topic: Girlfriend's Money Manager--Should She Switch to Vanguard?
Replies: 37
Views: 4432

Re: Girlfriend's Money Manager--Should She Switch to Vanguard?

A 5.75% load sounds like a 1 time event - and it is, but it has a serious effect on the eventual portfolio value. Neglecting the high fees associated with loaded funds, the ending portfolio will always be 5.75% less than it would have been without the load. Start with $100,000 in a non-load fund and...
by Dale_G
Tue Jun 30, 2015 12:31 am
Forum: Investing - Help with Personal Investments
Topic: Re-evaluating Managed Portfolio
Replies: 15
Views: 2310

Re: Re-evaluating Managed Portfolio

As far as the ODMAX is concerned, just sell it in the current account and put the proceeds in a money market or cash fund. The cash will move to Vanguard.

Dale
by Dale_G
Wed Jun 24, 2015 11:22 pm
Forum: Investing - Theory, News & General
Topic: What ratio are you stocks/bonds and how old are you?
Replies: 278
Views: 27866

Re: What ratio are you stocks/bonds and how old are you?

Overall, I'd say the boglehead's allocation to stock is pretty consistent. 2007 and 2015 are both close to market peaks and the equity allocation is similar. In 2011 we were still recovering from the crunch of 2008/2009, so it is not surprising that equity allocations were a bit lower at that time. ...
by Dale_G
Wed Jun 24, 2015 9:41 pm
Forum: Investing - Theory, News & General
Topic: Researching Principal Life Insurance Company
Replies: 8
Views: 1342

Re: Researching Principal Life Insurance Company

This fund apparently directly owns a variety of real estate properties - some, most, or all of which are mortgaged. In 2009 they did freeze withdrawals from the fund except for those who died, became disabled or reached full retirement age. And apparently from day 1, investors should have been aware...
by Dale_G
Wed Jun 24, 2015 4:15 pm
Forum: Investing - Theory, News & General
Topic: What ratio are you stocks/bonds and how old are you?
Replies: 278
Views: 27866

Re: What ratio are you stocks/bonds and how old are you?

Age 78 - and 70% equities. For most of my "investing career" I was happy with 50%-60% equities. It was a, "Let's make sure we have enough and not lose a whole lot kind of mindset". These days we have well more than enough and no need to take any risk. Excluding taxes, SS and a sm...
by Dale_G
Wed Jun 24, 2015 2:16 pm
Forum: Investing - Help with Personal Investments
Topic: Advice on consolidating under 5/3
Replies: 2
Views: 270

Re: Advice on consolidating under 5/3

It appears that you can have a plain vanilla brokerage account at 5/3 without the assistance of one of their "investment professionals". You should be able to move your Fidelity and Vanguard assets there "in kind". You can hunt around on their 5/3 website to get some general info...
by Dale_G
Tue Jun 23, 2015 2:14 pm
Forum: Investing - Help with Personal Investments
Topic: I’m considering changing the 'location' of my investments
Replies: 5
Views: 1246

Re: I’m considering changing the 'location' of my investments

Yup, bonds belong in tax deferred for me. I don't mind that the equities have gains of a few hundred percent in the taxable account, while bonds in the deferred accounts are just plugging along. If I had bonds in taxable and equities in my IRA, taxes on the RMD would triple. Besides, my heirs will a...
by Dale_G
Mon Jun 22, 2015 11:57 pm
Forum: Investing - Help with Personal Investments
Topic: Advice on Variable Annuity
Replies: 4
Views: 724

Re: Advice on Variable Annuity

Your friend should look at the "annuity tables" in the contract. This an older contract and the guaranteed interest rate may be significantly higher that available in either CDs or bonds. Your friend probably knows that he has a lot of annuitizing options: Single life, joint and last survi...
by Dale_G
Sun Jun 21, 2015 10:32 pm
Forum: Investing - Help with Personal Investments
Topic: Help with investment
Replies: 13
Views: 1477

Re: Help with investment

The fund has basic expenses that are related to investing whether those are legal, compliance or hiring someone to hold the securities. These expenses are generally a function of the total assets of the funds. The fund also has record keeping, mailing and client communication expenses. These latter ...
by Dale_G
Sun Jun 21, 2015 9:43 pm
Forum: Investing - Help with Personal Investments
Topic: Role of annuities in low SWR situations
Replies: 29
Views: 3499

Re: Role of annuities in low SWR situations

I see no reason for an annuity in the case of a 2% withdrawal from the portfolio. Annuities, like auto, home and life insurance are supposed to be money makers for the insurance companies. Some annuitants will collect more, others will collect less, but a fair estimate is that the annuitants as a cl...
by Dale_G
Sun Jun 21, 2015 7:15 pm
Forum: Investing - Theory, News & General
Topic: Robo Advisor for people in retirement
Replies: 8
Views: 1554

Re: Robo Advisor for people in retirement

_ _. . _ _ _ _ _ (Good evening old man for the non cw folks ... hmmm.. spacing not great). Assuming LS conservative is what you want for an asset allocation, I don't know how a robo adviser can add anything but a little more in the way of fees. I am not ready to go the LS route yet, but when I no lo...
by Dale_G
Sun Jun 21, 2015 10:33 am
Forum: Investing - Help with Personal Investments
Topic: Help with investment
Replies: 13
Views: 1477

Re: Help with investment

The Total Stock Market fund is a #1 choice for a broad domestic market fund. It is certainly the core fund in most Boglehead portfolios. The expense ratio is 0.05%, so the cost is $50 per $100,000 invested. An institutional class of Total Stock Market (VSMPX) is available with an expense ratio of 0....
by Dale_G
Sun Jun 21, 2015 12:17 am
Forum: Investing - Help with Personal Investments
Topic: Help with investment
Replies: 13
Views: 1477

Re: Help with investment

VTSMX and VTSAX are different share classes of Vanguard's Total Stock market fund, so they are the same except for the expense ration.

The minimum investment for the Admiral class fund VTSAX is $10,000 - not $100,000.

Dale
by Dale_G
Tue Jun 16, 2015 1:24 am
Forum: Personal Finance (Not Investing)
Topic: Establishing residency in Florida
Replies: 19
Views: 2743

Re: Establishing residency in Florida

Dr. c, I suggest you follow the link provided by bsteiner. I read most of it and it seems straight-forward and rational. Your intent to make FL your domicile is what really counts. If you are audited, you will need to show by your actions that it was in fact your intent to make FL your "home&qu...
by Dale_G
Tue Jun 16, 2015 12:25 am
Forum: Personal Finance (Not Investing)
Topic: Possible cross-road
Replies: 14
Views: 1870

Re: Possible cross-road

It sounds like a great plan clearsky. You already have a nice chunk of change stashed away and the odds are that it will grow a bit in the next decade. You can do whatever you want. Your quality of life and that of your parents is far more important than increasing the size of the pile. Better to sp...
by Dale_G
Mon Jun 15, 2015 1:25 pm
Forum: Investing - Help with Personal Investments
Topic: Maxmyinterest.com Comment
Replies: 14
Views: 2382

Re: Maxmyinterest.com Comment

Any time I have made investments in the name of a trust, the institution wanted a copy of the first page of the trust (or enough pages to show the name of the trust and the name of the trustee) and the signature page of the trust. Since Maxmyinterest moves the funds electronically from one bank to a...
by Dale_G
Mon Jun 15, 2015 12:52 pm
Forum: Investing - Help with Personal Investments
Topic: Next step and tax implication ? for newly educated Boglehead
Replies: 2
Views: 432

Re: Next step and tax implication ? for newly educated Boglehead

I agree with mike. I would get out of those funds in a heartbeat. The expenses may not be burdensome at the moment, but as your account grows, and time passes, they will continue to be a drag on your returns.

Best to sell now, before you gains become more significant.

Dale
by Dale_G
Sun Jun 14, 2015 11:27 pm
Forum: Personal Finance (Not Investing)
Topic: Variable Annuity - Does it become part of inheritance?
Replies: 38
Views: 2908

Re: Variable Annuity - Does it become part of inheritance?

How will the remaining payments be divided if the owner of the annuity dies in the payout period? Will the beneficiary receive the life guarantee if they picked the life payout? Will the remaining period left on the limited type be handed over? If the annuitant chose the "life only" optio...
by Dale_G
Sun Jun 14, 2015 12:28 pm
Forum: Investing - Help with Personal Investments
Topic: Investing Through Retirement Years.
Replies: 22
Views: 4008

Re: Investing Through Retirement Years.

snip.... The thing is, I could potentially roll my 457 and/or my Individual Account balance to an IRA, so that contributions could still be made through the years.......hell.......decades. again, I intend to retire from this line of work in less than 5 years. :moneybag Just to be clear about this: ...
by Dale_G
Sat Jun 13, 2015 11:54 pm
Forum: Personal Finance (Not Investing)
Topic: Variable Annuity - Does it become part of inheritance?
Replies: 38
Views: 2908

Re: Variable Annuity - Does it become part of inheritance?

sheople2, there is a fair amount of misinformation above (not referring to dhodson), partly because one piece of critical information is missing. Has the VA been annuitized - that is has it been converted to a series of monthly payments? 1. If the VA was annuitized your parent(s) could have chosen f...
by Dale_G
Sat Jun 13, 2015 4:42 pm
Forum: Investing - Theory, News & General
Topic: Real estate cost basis question
Replies: 3
Views: 513

Re: Real estate cost basis question

Yes, it looks like FIL gave a gift in 1998. If the property was for personal use and not rented, the basis would be $20,000. The fact that the cottage is a tear down doesn't affect anything, assuming there was no catastrophic loss.

Nice gain - be prepared to pay taxes.

Dale
by Dale_G
Thu Jun 11, 2015 10:43 pm
Forum: Investing - Help with Personal Investments
Topic: Am I stuck with my money being managed by Fidelity?
Replies: 61
Views: 5854

Re: Am I stuck with my money being managed by Fidelity?

It looks like the strategic advisors funds are only in the IRA. You could transfer the funds in the taxable account in kind and liquidate the funds in the IRA. Shouldn't incur any capital gains that way . I just wanted to emphasize Afty's comment regarding moving the taxable account to Vanguard &qu...
by Dale_G
Thu Jun 11, 2015 8:29 pm
Forum: Investing - Theory, News & General
Topic: US interest rates and emerging markets
Replies: 3
Views: 527

Re: US interest rates and emerging markets

... snip ... ....so they might as well use a total international stock index fund because the managers of such funds will do the rebalancing for them . The managers of the Total International fund (or those who manage the underlying index) do not "rebalance" based on market performance. E...
by Dale_G
Thu Jun 11, 2015 1:08 pm
Forum: Investing - Help with Personal Investments
Topic: Dreyfus Standish Global Fixed Income, Going Down
Replies: 4
Views: 535

Re: Dreyfus Standish Global Fixed Income, Going Down

Actually the fund has done pretty well, probably because it is leveraged in some fashion and has some lower quality bonds in the portfolio. That said, it has a fairly high expense ratio, and how it fares in the future compared to a more conservative fund is anyone's guess. But if you wish to move to...
by Dale_G
Thu Jun 11, 2015 12:26 am
Forum: Personal Finance (Not Investing)
Topic: What Percent Of Your Annual Expenses Are Property Taxes?
Replies: 101
Views: 6638

Re: What Percent Of Your Annual Expenses Are Property Taxes?

I pay about 6% of ordinary living expenses excluding gifts and federal taxes. Fortunately it is only about 1.5% of cashflow. My taxes are about 1.75% of assessed value, but after credits it amounts to about $1 per square foot. In my previous home in Ohio the taxes amounted to about $2 per square foo...
by Dale_G
Wed Jun 10, 2015 10:58 pm
Forum: Personal Finance (Not Investing)
Topic: Protective annuity
Replies: 3
Views: 570

Re: Protective annuity

You didn't say whether the policy had been annuitized or not. If it has not been annuitized there will be a number of options available to the named beneficiaries of the contract. If the contract has been annuitized, it may well have a "term certain" provision that continues the payments f...
by Dale_G
Wed Jun 10, 2015 10:24 pm
Forum: Investing - Help with Personal Investments
Topic: Have Vanguard withhold taxes or not? First time IRA withdrawal...
Replies: 8
Views: 1291

Re: Have Vanguard withhold taxes or not? First time IRA withdrawal...

And some of us delay some or all of the distribution until late in the year - and have enough tax withheld at that time to meet the safe harbor rules. For me, it eliminates any need to make quarterly estimated payments.

Dale
by Dale_G
Wed Jun 03, 2015 12:24 am
Forum: Investing - Theory, News & General
Topic: Four Vanguard International Equity Index changing/broadening indexes
Replies: 77
Views: 8098

Re: Four Vanguard International Equity Index changing/broadening indexes

I am glad to see Vanguard broadening the holdings within the international funds, particularly adding Canada to the Developed Markets fund. When the transition is complete I will end up with an overweight to international small caps to the tune of 6 figures, but I can live with that. I won't have to...
by Dale_G
Tue Jun 02, 2015 11:43 pm
Forum: Investing - Help with Personal Investments
Topic: Another refugee from Ameriprise - help!
Replies: 23
Views: 2327

Re: Another refugee from Ameriprise - help!

For sure, your advisor will figure out something is up when you move the IRA funds to cash and cash out the annuities. He/she will come up with a bunch of reasons why this is not a good idea. He/she probably gets to make the same pitch on a weekly basis. Pay no attention. It is business. Your adviso...
by Dale_G
Tue Jun 02, 2015 11:34 pm
Forum: Investing - Help with Personal Investments
Topic: Another refugee from Ameriprise - help!
Replies: 23
Views: 2327

Re: Another refugee from Ameriprise - help!

I inherited the IRAs back in 2013. They were opened by my friend, probably in the early 2000s. If I liquidate them into cash, won't I get hurt with taxes? (Sorry if that's a dumb question, but trying to educate myself here!) Just sell the funds in the IRA and move the proceeds to a money market fun...
by Dale_G
Mon Jun 01, 2015 11:40 pm
Forum: Investing - Theory, News & General
Topic: Dividend yield is a lot less important than buyback yield
Replies: 192
Views: 9866

Re: Dividend yield is a lot less important than buyback yield

Why is it that so many "dividend investors" or "income-focused investors" completely ignore stock buybacks? The tax treatment may be different in a taxable account, but in a retirement account it has the exact same net effect as if they paid a dividend and you reinvested it. Not...
by Dale_G
Sat May 30, 2015 11:38 pm
Forum: Investing - Theory, News & General
Topic: Clements blog-dividend stocks for retirement income
Replies: 58
Views: 5511

Re: Clements blog-dividend stocks for retirement income

I would be very worried investing in high yielding stocks right now as I believe many people are doing so because of the low interest rates on bonds. I don't want to be part of that crowd. I wonder what the exit will look like. The exit might be ugly - but maybe less ugly than the exit from equitie...
by Dale_G
Fri May 29, 2015 5:47 pm
Forum: Personal Finance (Not Investing)
Topic: Beneficiary to inherit TIAA Traditional Annuity, wants to withdraw all.
Replies: 6
Views: 824

Re: Beneficiary to inherit TIAA Traditional Annuity, wants to withdraw all.

Keep the money in the retirement accounts and declare bankruptcy. I don't know what has got you in this "bad financial situation" and what decisions you have made in the past, but there's little doubt that taking money out of these accounts would be the worst decision you've ever made. Ve...
by Dale_G
Fri May 29, 2015 5:11 pm
Forum: Personal Finance (Not Investing)
Topic: Managing finances in old age
Replies: 6
Views: 735

Re: Managing finances in old age

It doesn't answer the OP's question directly, but auto-pay takes care of all of the routine stuff. My bills for medigap insurance, electric, water, cable, phone, HOA, lawn service, credit cards, and other repetitive bills are directly debited from my checking account. The only things I pay by check ...
by Dale_G
Wed May 27, 2015 10:55 pm
Forum: Investing - Theory, News & General
Topic: Any impartial advocates for the other point of view?
Replies: 32
Views: 3062

Re: Any impartial advocates for the other point of view?

Not much help here - I am biased. I looked at my investment spreadsheet (goes back 35 years) and added up the accumulated cost of a 1% fee/year for the past 20 years. A mere $530,000. The fees would actually have been a bit lower because the ending portfolio would have been about 20% smaller - unles...
by Dale_G
Tue May 26, 2015 8:57 am
Forum: Investing - Theory, News & General
Topic: 401k contributions - does order type matter?
Replies: 7
Views: 691

Re: 401k contributions - does order type matter?

Those Vanguard ETFs are very active. As long as you place your orders while the market is open, you may as well use "market" orders. The orders should fill immediately - and will sometimes fill between the bid and ask price.

Dale
by Dale_G
Sun May 24, 2015 6:09 pm
Forum: Investing - Theory, News & General
Topic: Emerging market bond funds
Replies: 14
Views: 1594

Re: Emerging market bond funds

...Does anyone have an informed opinion of the risk and returns of emerging market bonds going forward? .... No, but I have a fact about its risk in the past: it dropped 40% in less than two months in 1998. And the the Total Stock Market dropped 57% from October 2007 to March 2009. Did this make yo...
by Dale_G
Sun May 24, 2015 4:12 pm
Forum: Investing - Theory, News & General
Topic: Emerging market bond funds
Replies: 14
Views: 1594

Re: Emerging market bond funds

I haven't found any longer data, but one site reports the 5 year correlation of EMB (iShares USD EM bond) to EEM (iShares EM Index) = 0.15 The 5 year correlation of EMB to AGG (iShares Barclays Aggregate Bond) = 0.27 http://www.assetcorrelation.com/majors/1826 EM bonds look like a reasonable diversi...

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