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Re: Help calculating inflation

Thanks everyone. I'll be able to get something together. I do see the value of using real returns to run simulations. However, in this case I'm not doing anything particularly sophisticated. Other than just trying to get a mental picture of my own about how much buying power I'll have in retirement,...
by bobsmith
Tue Dec 09, 2014 5:05 pm
 
Forum: Investing - Help with Personal Investments
Topic: Help calculating inflation
Replies: 9
Views: 437

Help calculating inflation

Couple of inflation questions... 1. I'm testing out different hypothetical allocations by projecting out 20 years under different hypothetical market gains. Is there an accepted approximation for the average annual inflation rate (US)? Of course I know there real rate varies, but what's a fair guess...
by bobsmith
Tue Dec 09, 2014 1:39 pm
 
Forum: Investing - Help with Personal Investments
Topic: Help calculating inflation
Replies: 9
Views: 437

Re: VanG 500 IN + VanG Xtnd Mkt = TSMI?



BTW.. this is a good source, but be aware it's from 2008.
by bobsmith
Mon Dec 08, 2014 5:30 pm
 
Forum: Investing - Help with Personal Investments
Topic: VanG 500 IN + VanG Xtnd Mkt = TSMI?
Replies: 5
Views: 504

Re: VanG 500 IN + VanG Xtnd Mkt = TSMI?

Okay, I got what I need then.

Thanks guys. You rock!
by bobsmith
Mon Dec 08, 2014 5:29 pm
 
Forum: Investing - Help with Personal Investments
Topic: VanG 500 IN + VanG Xtnd Mkt = TSMI?
Replies: 5
Views: 504

VanG 500 IN + VanG Xtnd Mkt = TSMI?

I'm a passive investor only using index funds and I'm trying to reallocate for drift. I'd love to just have the TSMI for simplicity, but I hold both the Vanguard 500 Index and the Vanguard Extended Market inside a taxable account and each have about 50% unrealized gains, so I don't want to mess with...
by bobsmith
Mon Dec 08, 2014 2:49 pm
 
Forum: Investing - Help with Personal Investments
Topic: VanG 500 IN + VanG Xtnd Mkt = TSMI?
Replies: 5
Views: 504

Re: Seeking Historical returns for Core Indexes

siamond,

That's a neat website, but I'd like to have traditional graph I can tweak and use on Excel. Much like the VanG link, I'd like to have the data the website used to create that calculator. I've bookmarked it for later use.

Thanks anyway.
by bobsmith
Mon Nov 17, 2014 3:31 pm
 
Forum: Investing - Help with Personal Investments
Topic: Seeking Historical returns for Core Indexes
Replies: 10
Views: 1297

Re: Seeking Historical returns for Core Indexes

You guys are great, but I don't have the time and I'm not sure I have the interest to work so hard for that data. Maybe I'll pick this up later or simply approach it another way. I guess I could just use the DJI or S&P but I don't think it represents the market the way a TSMI index would. That s...
by bobsmith
Mon Nov 17, 2014 11:25 am
 
Forum: Investing - Help with Personal Investments
Topic: Seeking Historical returns for Core Indexes
Replies: 10
Views: 1297

Re: Seeking Historical returns for Core Indexes

123,

Yes, of course your are correct and good points on the measurement errors.

1926 would be fine, but I'm still looking for the actual annual returns as described in my OP.
by bobsmith
Sun Nov 16, 2014 6:11 pm
 
Forum: Investing - Help with Personal Investments
Topic: Seeking Historical returns for Core Indexes
Replies: 10
Views: 1297

Seeking Historical returns for Core Indexes

Hi, I'm trying to explain to a friend the kind of peaks and valleys he should expect depending upon his stock to bond ratio. Besides providing an overall picture of the roller coaster ride, I'd also like to be able to use historical data to cherry pick some inopportune times of getting into the mark...
by bobsmith
Sun Nov 16, 2014 5:45 pm
 
Forum: Investing - Help with Personal Investments
Topic: Seeking Historical returns for Core Indexes
Replies: 10
Views: 1297

Re: Help finding Prudential Funds similar to Vanguard TSMI

He's looking to find something as close as possible to Vanguard's Total Stock Market Index paired with Vanguard's Total International Stock Market Index in a 70/30 split, I'm looking over some of the fund choices, but this is confusing. You said your friend is very risk averse, so it's surprising h...
by bobsmith
Tue Aug 12, 2014 11:10 pm
 
Forum: Investing - Help with Personal Investments
Topic: Help finding Prudential Funds similar to Vanguard TSMI
Replies: 11
Views: 1080

Re: Help finding Prudential Funds similar to Vanguard TSMI

LongerPrimer, Thanks, this is all good information. As so often happens here, I've gone beyond my first question and I'm interested in exploring what you are talking about but I feel I need to do more homework to spare you and others having to explain basic concepts. Besides my ignorance of annuitie...
by bobsmith
Tue Aug 12, 2014 3:02 pm
 
Forum: Investing - Help with Personal Investments
Topic: Help finding Prudential Funds similar to Vanguard TSMI
Replies: 11
Views: 1080

Re: Help finding Prudential Funds similar to Vanguard TSMI

Check the actual terms here; many variable annuities limit what you can invest in and still keep the guaranteed benefit, in order to prevent investors from taking extreme risks with the house's money. I plan to contact the agent again soon and will mention this concern, but considering that they li...
by bobsmith
Mon Aug 11, 2014 7:21 pm
 
Forum: Investing - Help with Personal Investments
Topic: Help finding Prudential Funds similar to Vanguard TSMI
Replies: 11
Views: 1080

Re: Tax on Death beneift held inside an annuity inside an IR

LongerPrimer, Yes, I need to speak again with the Prudential agent and I will soon and it's true I'm not familiar with all the various forms annuities take, but I am pretty familiar with the particular one that my friend is in and I'm sure it's not an "income" annuity. In fact, there are h...
by bobsmith
Sat Aug 09, 2014 11:37 am
 
Forum: Personal Finance (Not Investing)
Topic: Tax on Death beneift held inside an annuity inside an IRA?
Replies: 21
Views: 1246

Re: Tax on Death beneift held inside an annuity inside an IR

LongerPrimer, I spoke to the rep a few years back. It was a long call. My friend thought he was getting a guaranteed 5% return but there was really no such thing. The 5% had something to do with the minimum he could withdraw under certain situations. It was a convoluted explanation that offered no b...
by bobsmith
Fri Aug 08, 2014 8:11 pm
 
Forum: Personal Finance (Not Investing)
Topic: Tax on Death beneift held inside an annuity inside an IRA?
Replies: 21
Views: 1246

Re: Tax on Death beneift held inside an annuity inside an IR

Thanks to everyone for your responses. Ron's link was helpful, but I think Alan S really addressed my question best. First, to be clear, we are talking about a traditional IRA, not a roth. RMDs are being accounted for each year without being subjected to a surrender fee and they do in fact lessen th...
by bobsmith
Fri Aug 08, 2014 12:20 pm
 
Forum: Personal Finance (Not Investing)
Topic: Tax on Death beneift held inside an annuity inside an IRA?
Replies: 21
Views: 1246

Re: Tax on Death beneift held inside an annuity inside an IR

bob, After you get back, can you tell us if there is non-annuity money in the IRA? For example, did the person put part of their wages in the IRA, then at some point, use some of the account (but not all of it) to buy the annuity? Has the person died? He has other IRAs, but this IRA (traditional) h...
by bobsmith
Fri Aug 08, 2014 11:39 am
 
Forum: Personal Finance (Not Investing)
Topic: Tax on Death beneift held inside an annuity inside an IRA?
Replies: 21
Views: 1246

Re: Help finding Prudential Funds similar to Vanguard TSMI

Grabiner, You raise a lot of good points. It's hard to offer a straight forward post/question here on the forums without elaborating on the background enough to ward off tangent questions and concerns, yet I understand and appreciate your thoroughness. It's true my friend is not "locked in"...
by bobsmith
Fri Aug 08, 2014 11:23 am
 
Forum: Investing - Help with Personal Investments
Topic: Help finding Prudential Funds similar to Vanguard TSMI
Replies: 11
Views: 1080

Re: Tax on Death beneift held inside an annuity inside an IR

Oicuryy wrote:This guy's understanding is different from yours, bobsmith. Decide for yourself if he knows what he is talking about.
Annuity Death Benefit Tax Implications

Ron


Ron,

Thank you, I'll take a good look at that.

(On my way out. Be back in a week)
by bobsmith
Sat Aug 02, 2014 12:07 pm
 
Forum: Personal Finance (Not Investing)
Topic: Tax on Death beneift held inside an annuity inside an IRA?
Replies: 21
Views: 1246

Re: Tax on Death beneift held inside an annuity inside an IR

It's not an IRA held inside and IRA. It's an annuity held inside an IRA. I'm not sure how more plainly I can state it. While IME, it's rarely a good idea to purchase and annuity inside an IRA, it's hardly uncommon. If you can answer my tax question based on the information I have given you, then I'...
by bobsmith
Sat Aug 02, 2014 12:06 pm
 
Forum: Personal Finance (Not Investing)
Topic: Tax on Death beneift held inside an annuity inside an IRA?
Replies: 21
Views: 1246

Re: Tax on Death beneift held inside an annuity inside an IR

It's not an IRA held inside and IRA. It's an annuity held inside an IRA. I'm not sure how more plainly I can state it. While IME, it's rarely a good idea to purchase and annuity inside an IRA, it's hardly uncommon. If you can answer my tax question based on the information I have given you, then I'd...
by bobsmith
Sat Aug 02, 2014 11:29 am
 
Forum: Personal Finance (Not Investing)
Topic: Tax on Death beneift held inside an annuity inside an IRA?
Replies: 21
Views: 1246

Re: Tax on Death beneift held inside an annuity inside an IR

sscritic,

Annuity (b) is held inside an IRA (a).

(still expect to be gone for about a week, just haven't left yet...)
by bobsmith
Sat Aug 02, 2014 10:11 am
 
Forum: Personal Finance (Not Investing)
Topic: Tax on Death beneift held inside an annuity inside an IRA?
Replies: 21
Views: 1246

Tax on Death beneift held inside an annuity inside an IRA?

I have a pretty good understanding about how IRAs are handled by descendents once the benefactor dies. However, what I'm posting about is an annuity with a death benefit held inside of a (traditional) IRA. Upon death, the death benefit pays out a lump sum. It's my understanding that outside of an IR...
by bobsmith
Sat Aug 02, 2014 9:15 am
 
Forum: Personal Finance (Not Investing)
Topic: Tax on Death beneift held inside an annuity inside an IRA?
Replies: 21
Views: 1246

Re: Help finding Prudential Funds similar to Vanguard TSMI

Is he locked into Prudential (for example, is this his employer 403(b))? If not, he could exchange the annuity to Vanguard. If he is, then you need to look at the options in his specific plan; the Prudential page says that not all products may be available in all states or firms. Thanks for the rep...
by bobsmith
Sat Aug 02, 2014 7:41 am
 
Forum: Investing - Help with Personal Investments
Topic: Help finding Prudential Funds similar to Vanguard TSMI
Replies: 11
Views: 1080

Help finding Prudential Funds similar to Vanguard TSMI

I'm a passive investor who deals primarily with Vanguard. A friend of mine holds a prudential annuity. He's looking to find something as close as possible to Vanguard's Total Stock Market Index paired with Vanguard's Total International Stock Market Index in a 70/30 split, respectively. Good diversi...
by bobsmith
Fri Aug 01, 2014 5:40 pm
 
Forum: Investing - Help with Personal Investments
Topic: Help finding Prudential Funds similar to Vanguard TSMI
Replies: 11
Views: 1080

Re: What's important.

Is it probably safe to assume that in the long run the differences between a 70/30 and 81.5/18.5 allocation will continue to be negligible? Bob: In my opinion, the 11.5% allocation difference (return & risk) in these two stock funds will be negligible in the long run. It is far down on the list...
by bobsmith
Thu Jan 02, 2014 3:25 pm
 
Forum: Investing - Help with Personal Investments
Topic: Correct ratio for creating TSMI with 500IN/Xtnd Mrkt?
Replies: 5
Views: 406

Re: Correct ratio for creating TSMI with 500IN/Xtnd Mrkt?

sscritic wrote:
These percentages were computed on Aug 16, 2008, except where otherwise noted.


Good catch. Wonder if/when this will be updated...
by bobsmith
Thu Jan 02, 2014 3:18 pm
 
Forum: Investing - Help with Personal Investments
Topic: Correct ratio for creating TSMI with 500IN/Xtnd Mrkt?
Replies: 5
Views: 406

Re: What was your 2013 return?

All index funds, 59.5 us stock/25.5 I'ntl stock/15% bonds..... 22.5% (with a little rough math in there)
by bobsmith
Thu Jan 02, 2014 2:43 pm
 
Forum: Investing - Theory, News & General
Topic: [Poll] What was your 2013 return?
Replies: 209
Views: 9661

Correct ratio for creating TSMI with 500IN/Xtnd Mrkt?

My topic is the recreation Vanguard's Total Stock Market Index using Vanguards 500 Index and Vanguard's Extended Market Index. My preference would be simply to hold Vanguard TSMI only, but the 500IN and Xtnd Mkt funds that I hold each have about 45% unrealized so I'm not in any hurry to cash them in...
by bobsmith
Thu Jan 02, 2014 11:45 am
 
Forum: Investing - Help with Personal Investments
Topic: Correct ratio for creating TSMI with 500IN/Xtnd Mrkt?
Replies: 5
Views: 406

Re: How often to do re-allocate for drift?

For those who go by percentage, 5% seems to be a common choice. I'm wondering if any research has been on on the benefits of rebalancing sooner rather than later, sooner meaning perhaps annually instead of every 4-5 years. I suppose the answer is this would have to do with the peaks and valleys of t...
by bobsmith
Thu Aug 08, 2013 11:05 am
 
Forum: Investing - Help with Personal Investments
Topic: How often to do re-allocate for drift?
Replies: 14
Views: 842

Re: How often to do re-allocate for drift?

cheese_breath wrote:I take a checkpoint at the end of each month and decide what to do based on the results. Very seldom do these results indicate a need to rebalance.


Do you base it on percentage or are you looking at real dollar amounts to make your decision?
by bobsmith
Wed Aug 07, 2013 8:16 am
 
Forum: Investing - Help with Personal Investments
Topic: How often to do re-allocate for drift?
Replies: 14
Views: 842

Re: How often to do re-allocate for drift?

Are you asking about rebalancing? Or are you asking about where one put new contributions to the portfolio which is a kind of rebalancing? Or are you asking about changing one's asset allocation for any reason? If you search the forum for "rebalancing" there are lots of polls and lots of ...
by bobsmith
Wed Aug 07, 2013 8:05 am
 
Forum: Investing - Help with Personal Investments
Topic: How often to do re-allocate for drift?
Replies: 14
Views: 842

How often to do re-allocate for drift?

Just wondering how often folks here at the forum re-allocate? Every few years? Annually? Or do you monitor your drift and base it on that, say whenever allocation moves 5% out of line or something like that?
by bobsmith
Tue Aug 06, 2013 7:32 pm
 
Forum: Investing - Help with Personal Investments
Topic: How often to do re-allocate for drift?
Replies: 14
Views: 842

Re: Realize gains on taxable investments in order to fund Ro

I'm starting to think it might just be simpler to put the earnings in a money market and using that to fund the Roth once or twice a year. Otherwise I'd have to change and monitor things more than I'd prefer.

Thanks for all the ideas and the information. Much appreciated.
by bobsmith
Mon Aug 05, 2013 5:41 am
 
Forum: Investing - Help with Personal Investments
Topic: Realize gains on taxable investments in order to fund Roth?
Replies: 16
Views: 949

Re: Realize gains on taxable investments in order to fund Ro

If you do need to realize gains, it is certainly worth realizing them to fund your Roth IRA, and also your Roth 403(b) if it is decent. Any gains you have will eventually be taxed; by paying the tax now, you ensure that you will never again pay tax on the future gains. Thanks. Your posts in other t...
by bobsmith
Sun Aug 04, 2013 7:37 am
 
Forum: Investing - Help with Personal Investments
Topic: Realize gains on taxable investments in order to fund Roth?
Replies: 16
Views: 949

Re: Realize gains on taxable investments in order to fund Ro

^There's no need to bother with a money market fund, given that they pay 0%. Just direct the dividends to your linked bank account. They'll show up a day or two later after the dividends are declared. Once the money arrives, then you can do the IRA contribution. The dividend money will be out-of-ma...
by bobsmith
Sun Aug 04, 2013 7:11 am
 
Forum: Investing - Help with Personal Investments
Topic: Realize gains on taxable investments in order to fund Roth?
Replies: 16
Views: 949

Re: Realize gains on taxable investments in order to fund Ro

Thanks everyone. This is just the info I was looking for and it sounds like the best course of action is to take advantage of the Roths as much as I can. I really appreciate the reasoned advice and the mathematical calculations showing how it pays off. Like houseblend and neurosphere were talking ab...
by bobsmith
Sat Aug 03, 2013 6:54 pm
 
Forum: Investing - Help with Personal Investments
Topic: Realize gains on taxable investments in order to fund Roth?
Replies: 16
Views: 949

Re: Realize gains on taxable investments in order to fund Ro

I don't really have any extra income to use for investing, but I did receive an inheritance years ago which I invested primarily in a taxable account. I mostly leave the inheritance alone and let it grow. This taxable account is presumably generating dividends, so you should stop reinvesting those ...
by bobsmith
Sat Aug 03, 2013 2:05 pm
 
Forum: Investing - Help with Personal Investments
Topic: Realize gains on taxable investments in order to fund Roth?
Replies: 16
Views: 949

Realize gains on taxable investments in order to fund Roth?

Hi, hoping and appreciating any advice I can get from the forum! Here's my situation: I'm 46 years old. All my funds are with Vanguard. I am an disciplined index investor. I am currently in the 25% bracket and will get a pension so I expect to be in the 25% bracket during retirement as well. In othe...
by bobsmith
Sat Aug 03, 2013 9:52 am
 
Forum: Investing - Help with Personal Investments
Topic: Realize gains on taxable investments in order to fund Roth?
Replies: 16
Views: 949

Re: Vanguard Retirement Fund vs. Buying the Funds individual

one of the reasons i keep it(besides the fact it performs well) is because it invests in some areas i'm not comfortable in doing myself. foreign holdings i mostly don't understand. they do my international exposure for me. Well, in the case of Vanguard it's pretty straight forward. Their version of...
by bobsmith
Sun Apr 28, 2013 8:55 am
 
Forum: Investing - Help with Personal Investments
Topic: Vanguard Retirement Fund vs. Buying the Funds individually
Replies: 32
Views: 2722

Re: Vanguard Retirement Fund vs. Buying the Funds individual

i just retired and have trowe price 2020 fund. i like it and intend to keep it. like retirement funds in general it has its equity and bond components that adjust as one grows older. it amazes me that people think they are better at doing allocations than professionals. that does not mean you can't...
by bobsmith
Sat Apr 27, 2013 10:30 pm
 
Forum: Investing - Help with Personal Investments
Topic: Vanguard Retirement Fund vs. Buying the Funds individually
Replies: 32
Views: 2722

Re: Vanguard Retirement Fund vs. Buying the Funds individual

My point is that the savings from using option #2 is likely to be more than the 0.09% expense difference (thus "the 0.09%), because of the need to sell the TR fund prematurely, or to keep the TR fund's corporate and government bonds when you would get a lower tax cost from I-Bonds or municipal...
by bobsmith
Sat Apr 27, 2013 10:21 pm
 
Forum: Investing - Help with Personal Investments
Topic: Vanguard Retirement Fund vs. Buying the Funds individually
Replies: 32
Views: 2722

Re: Vanguard Retirement Fund vs. Buying the Funds individual

Which of these options is better? I'm making an investment in a Vanguard Taxable account. Retirement is at least ten years away. Investment option #1: Vanguard Target Retirement 2035 Fund - 0.18% total fund cost Investment option #2: Re-create the Vanguard Target Retirement 2035 Fund using the fund...
by bobsmith
Sat Apr 27, 2013 11:43 am
 
Forum: Investing - Help with Personal Investments
Topic: Vanguard Retirement Fund vs. Buying the Funds individually
Replies: 32
Views: 2722

Re: Vanguard Retirement Fund vs. Buying the Funds individual

For my own investments I allocate across all accounts, but this inquiry is for someone else and I like that the Target Funds make for zero or no maintenance. I looked at the link provided by Landy and was working under the assumption that the taxable account is yours, that you have a 403b and that ...
by bobsmith
Sat Apr 27, 2013 11:41 am
 
Forum: Investing - Help with Personal Investments
Topic: Vanguard Retirement Fund vs. Buying the Funds individually
Replies: 32
Views: 2722

Re: Vanguard Retirement Fund vs. Buying the Funds individual

pingo, Thanks for the links which I looked through. I don't have privacy issues, I just didn't want to expand the thread into other areas and waste everyone's time getting advice I've already considered. Even so, maybe I'll start a "portfolio" thread at a later time. I'm not attached to th...
by bobsmith
Fri Apr 26, 2013 6:09 pm
 
Forum: Investing - Help with Personal Investments
Topic: Vanguard Retirement Fund vs. Buying the Funds individually
Replies: 32
Views: 2722

Re: Vanguard Retirement Fund vs. Buying the Funds individual

A lot of questions, bobsmith, can address the "ideal" regardless of magnitude. But, both are important. ⋅ For instance, say Taxable is 5% of all retirement Assets, so I I say... Immaterial! Who cares? ⋅ Thus, the reason why other posters are telling your that there is ...
by bobsmith
Fri Apr 26, 2013 1:16 pm
 
Forum: Investing - Help with Personal Investments
Topic: Vanguard Retirement Fund vs. Buying the Funds individually
Replies: 32
Views: 2722

Re: Vanguard Retirement Fund vs. Buying the Funds individual

What type of funds are you investing? My 403(b) with Vanguard is in the low 6-figures and is invested entirely in Retirement 2035. Admiral shares are unavailable to investors in Vanguard 401(k) and 403(b) accounts regardless of account balance so there is nothing gained by slicing and dicing with i...
by bobsmith
Fri Apr 26, 2013 1:00 pm
 
Forum: Investing - Help with Personal Investments
Topic: Vanguard Retirement Fund vs. Buying the Funds individually
Replies: 32
Views: 2722

Re: Vanguard Retirement Fund vs. Buying the Funds individual

A lot of questions, bobsmith, can address the "ideal" regardless of magnitude. But, both are important. ⋅ For instance, say Taxable is 5% of all retirement Assets, so I I say... Immaterial! Who cares? ⋅ Thus, the reason why other posters are telling your that there is ...
by bobsmith
Fri Apr 26, 2013 12:59 pm
 
Forum: Investing - Help with Personal Investments
Topic: Vanguard Retirement Fund vs. Buying the Funds individually
Replies: 32
Views: 2722

Re: Vanguard Retirement Fund vs. Buying the Funds individual

This is applicable to a situation where you have funds outside of tax sheltered accounts. In that case, you have a choice to make whether to put stocks or bonds in taxable. That's a good point which I've now acknowledged for the third time. In this case, it would be better to have bonds in tax shel...
by bobsmith
Fri Apr 26, 2013 12:32 pm
 
Forum: Investing - Help with Personal Investments
Topic: Vanguard Retirement Fund vs. Buying the Funds individually
Replies: 32
Views: 2722

Re: Vanguard Retirement Fund vs. Buying the Funds individual

The point is you can hold your bonds in a tax advantaged account and potentially reduce your tax liability. Right, as I said to House Blend, this s a good point and one I hadn't really considered, although some would challenge the conventional wisdom of putting bonds in a tax sheltering account ove...
by bobsmith
Fri Apr 26, 2013 11:34 am
 
Forum: Investing - Help with Personal Investments
Topic: Vanguard Retirement Fund vs. Buying the Funds individually
Replies: 32
Views: 2722

Re: Vanguard Retirement Fund vs. Buying the Funds individual

Not enough information provided. You could hold 100% TSM in taxable and do all of your rebalancing in tax-advantaged accounts. Rebalancing costs you $0. You'll pay at most 15% Federal tax on the dividends in your taxable account, possibly 0% if you misunderstand your tax liabilities in retirement. ...
by bobsmith
Fri Apr 26, 2013 10:44 am
 
Forum: Investing - Help with Personal Investments
Topic: Vanguard Retirement Fund vs. Buying the Funds individually
Replies: 32
Views: 2722
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