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Re: 401K Required Minimum Distribution Question

I think it's best to take the first distribution before December 31, 2014, then take another one before April 1, 2015. I don't understand why this is good. You are splitting the 2014 RMD into these two parts. Then you need to take the 2015 RMD too before December 31, 2015. So you will reduce first ...
by joer1212
Fri Mar 14, 2014 1:19 pm
 
Forum: Investing - Help with Personal Investments
Topic: 401K Required Minimum Distribution Question
Replies: 10
Views: 761

Re: 401K Required Minimum Distribution Question

Thank you for the informative answers, guys. I can always depend on this forum as the last word in all matters related to money.
I think it's best to take the first distribution before December 31, 2014, then take another one before April 1, 2015.
by joer1212
Tue Mar 11, 2014 6:44 pm
 
Forum: Investing - Help with Personal Investments
Topic: 401K Required Minimum Distribution Question
Replies: 10
Views: 761

401K Required Minimum Distribution Question

My father turned age 70 on October 29, 2013. Is he required to take a minimum distribution from his 401K by April 1st, 2014, or by April 1st, 2015? I read that you must take a Required Minimum Distribution from your 401K in the year immediately following the year you turn 70 1/2. My father turns 70 ...
by joer1212
Tue Mar 11, 2014 3:36 pm
 
Forum: Investing - Help with Personal Investments
Topic: 401K Required Minimum Distribution Question
Replies: 10
Views: 761

Re: quick question about adding up expense ratios

Dumb question here....but...I am checking up on what our regular stockbroker has done for us. Say he has us in six mutual funds, with an expense ratio of 1.5 for each, does that mean that each month we are paying 6% of our money for operating expenses? Same with our 401k. We have several funds we h...
by joer1212
Mon Feb 10, 2014 2:56 pm
 
Forum: Investing - Help with Personal Investments
Topic: quick question about adding up expense ratios
Replies: 9
Views: 1267

Re: Do commodities protect you in bear markets?

It doesn't matter whether or not commodities protect you in a bear market. The average retail investor will not be able to efficiently invest in this asset class, anyway. Here's why: (1) Cost: I am not aware of any broad commodity fund with an ER of less than 0.60%. While this may seem reasonable, i...
by joer1212
Sun Jan 12, 2014 2:49 pm
 
Forum: Investing - Theory, News & General
Topic: Do commodities protect you in bear markets?
Replies: 90
Views: 6819

Re: Should I add more money to a TIPS fund when its value dr

Would this penalty also apply to withdrawing only the interest from the I-bonds, without selling the bonds, or would it not possible to do this? I think the interest payments add to your principal in I Bonds, so they would still be under the same penalty. This is what the TreasuryDirect site says: ...
by joer1212
Thu Jan 09, 2014 2:30 am
 
Forum: Investing - Help with Personal Investments
Topic: Should I add more money to a TIPS fund when its value drops?
Replies: 40
Views: 2298

Re: Should I add more money to a TIPS fund when its value dr

Would this penalty also apply to withdrawing only the interest from the I-bonds, without selling the bonds, or would it not possible to do this? I think the interest payments add to your principal in I Bonds, so they would still be under the same penalty. This is what the TreasuryDirect site says: ...
by joer1212
Thu Jan 09, 2014 2:28 am
 
Forum: Investing - Help with Personal Investments
Topic: Should I add more money to a TIPS fund when its value drops?
Replies: 40
Views: 2298

Re: Should I add more money to a TIPS fund when its value dr

if there was a significant pickup in inflation, then all rates would go up


This is what I meant.
by joer1212
Wed Jan 08, 2014 9:01 pm
 
Forum: Investing - Help with Personal Investments
Topic: Should I add more money to a TIPS fund when its value drops?
Replies: 40
Views: 2298

Re: Should I add more money to a TIPS fund when its value dr

I remember reading something about being penalized for 3 months interest if I withdraw money from an I-bond before 5 years That's correct. You can't sell I Bonds for one year, then after one year and before 5 years, you have the 3-month interest penalty (which is a pretty small penalty, in my opini...
by joer1212
Wed Jan 08, 2014 8:59 pm
 
Forum: Investing - Help with Personal Investments
Topic: Should I add more money to a TIPS fund when its value drops?
Replies: 40
Views: 2298

Re: Should I add more money to a TIPS fund when its value dr

What about I bonds as a substitute for individual TIPS? They are tax-deferred, and don't have the "phantom income" problem that holding TIPS in taxable would have. Without question, I Bonds are superior. So your first $10,000 per person goes to I Bonds. After that, you get into this TIPS ...
by joer1212
Wed Jan 08, 2014 1:47 am
 
Forum: Investing - Help with Personal Investments
Topic: Should I add more money to a TIPS fund when its value drops?
Replies: 40
Views: 2298

Re: Should I add more money to a TIPS fund when its value dr

I am a huge fan of TIPS and I Bonds. At the right price.


What would be the "right price"? Since I don't know a lot about this asset class, it would be nice to know a ballpark figure to gauge when prices are edging towards normalcy.
by joer1212
Wed Jan 08, 2014 1:29 am
 
Forum: Investing - Help with Personal Investments
Topic: Should I add more money to a TIPS fund when its value drops?
Replies: 40
Views: 2298

Re: Should I add more money to a TIPS fund when its value dr

Since interest rates have nowhere to go but up, it is not a question of if, but a question of when TIPS' value will drop, and by how much. This is the part that know one knows. What do you mean? The yield just went up 1%, it can go back down in a jiffy. Are you confusing Fed overnight rates and bon...
by joer1212
Wed Jan 08, 2014 1:25 am
 
Forum: Investing - Help with Personal Investments
Topic: Should I add more money to a TIPS fund when its value drops?
Replies: 40
Views: 2298

Re: Should I add more money to a TIPS fund when its value dr

You could purchase 10-year TIPS individual bonds at the upcoming Treasury Auction Jan 23 and an equal amount of year 5-year TIPS individual bonds at the upcoming April Treasury Auction (or in any ratio that you would like) and would not have to worry about loosing any money if held to maturity. If ...
by joer1212
Wed Jan 08, 2014 12:57 am
 
Forum: Investing - Help with Personal Investments
Topic: Should I add more money to a TIPS fund when its value drops?
Replies: 40
Views: 2298

Re: Should I add more money to a TIPS fund when its value dr

Joer and others. I am no expert but it took me a long time and lots of study to finally decide that TIPS are a drastically different kind of investment. They are NOT like bonds or stocks. They are just different. That is also why I suggest a person not cost average or invest normally in them. In fa...
by joer1212
Tue Jan 07, 2014 10:24 pm
 
Forum: Investing - Help with Personal Investments
Topic: Should I add more money to a TIPS fund when its value drops?
Replies: 40
Views: 2298

Re: Should I add more money to a TIPS fund when its value dr

That said, it would still be better to sit out the decline in cash and buy everything at the bottom, but none of us can see either the decline or the bottom with any kind of reliability. Stay the course and avoid the lure of market timing. I would be content even if I bought somewhere halfway betwe...
by joer1212
Tue Jan 07, 2014 7:35 pm
 
Forum: Investing - Help with Personal Investments
Topic: Should I add more money to a TIPS fund when its value drops?
Replies: 40
Views: 2298

Re: VG Total International Bond Fund is open

There's usually a commission for each purchase and sale. Could range from anywhere between a few bucks to >$75. If you're purchasing with each paycheck, that could add up quickly. There might also be an annual fee for using the brokerage option. Your plan documents should clearly list all of this i...
by joer1212
Tue Jan 07, 2014 4:59 pm
 
Forum: Investing - Theory, News & General
Topic: VG Total International Bond Fund is open
Replies: 82
Views: 10639

Re: International Bonds - Good Idea Or Not?

I just can't get behind something where the more debt a country has, the larger the weight in the index. It is just different than equities. Just because a country issues more debt doesn't necessarily mean it is more indebted . The reason one country issues more debt than another may be because it ...
by joer1212
Tue Jan 07, 2014 4:39 pm
 
Forum: Investing - Help with Personal Investments
Topic: International Bonds - Good Idea Or Not?
Replies: 27
Views: 2678

Re: VG Total International Bond Fund is open

My 401k allows a full brokerage account at Fidelity. With that, I can get pretty much anything I want. Hmm. I must be missing out on something because I remember my employer mentioning that 20% of my 401k can consist of a "Self-Directed Mutual Fund Option--which offers you access to an expande...
by joer1212
Tue Jan 07, 2014 2:24 pm
 
Forum: Investing - Theory, News & General
Topic: VG Total International Bond Fund is open
Replies: 82
Views: 10639

Re: Should I add more money to a TIPS fund when its value dr

One observation I would make is that 6% in TIPS is hardly worth the bother. What reason in particular do you have for holding TIPS? I hold TIPS for diversification. Also, keep in mind that TIPS comprise 6% of my portfolio, but this money is in my Roth IRA . This means that it is tax-free money, and...
by joer1212
Tue Jan 07, 2014 2:12 pm
 
Forum: Investing - Help with Personal Investments
Topic: Should I add more money to a TIPS fund when its value drops?
Replies: 40
Views: 2298

Re: Vanguard recommending international bond....

I think Vanguard did the right thing to hedge this fund. After all, if you own a well-diversified portfolio (which you should), you get currency exposure with international equities. You don't need the additional drama and volatility that currency risk would bring to a global bond fund. Bonds, wheth...
by joer1212
Tue Jan 07, 2014 5:29 am
 
Forum: Investing - Theory, News & General
Topic: Vanguard recommending international bond....
Replies: 38
Views: 4073

Re: VG Total International Bond Fund is open

This is my situation. I do not have any more "room" in 401k or Roth IRAs right now for Vanguard's International Bond Fund but would like to add it to my portfolio. Should I just wait until next year when I have another 17.5K room in my 401k and 11K in Roths (me and wife)? just thinking Ho...
by joer1212
Tue Jan 07, 2014 4:57 am
 
Forum: Investing - Theory, News & General
Topic: VG Total International Bond Fund is open
Replies: 82
Views: 10639

Re: Should I add more money to a TIPS fund when its value dr

In my taxable account I hold a portion in TIPS. Rather than rebalance, I just put money into whichever fund is below its targeted asset allocation. So this past year almost all my money has been in going into TIPS as I know that at some they will improve given my long time horizon. Yes, this is exa...
by joer1212
Tue Jan 07, 2014 3:38 am
 
Forum: Investing - Help with Personal Investments
Topic: Should I add more money to a TIPS fund when its value drops?
Replies: 40
Views: 2298

Re: Should I add more money to a TIPS fund when its value dr

I think this Vanguard paper sheds some light on the issue: http://www.vanguard.com/pdf/icrrol.pdf An enticing concept is that it may be much more profitable to just keep dollar-cost averaging into TIPS and TBM--regardless of market conditions--than to try to predict the right time to jump in. The id...
by joer1212
Tue Jan 07, 2014 3:02 am
 
Forum: Investing - Help with Personal Investments
Topic: Should I add more money to a TIPS fund when its value drops?
Replies: 40
Views: 2298

Re: Should I add more money to a TIPS fund when its value dr

The one difference between [safe] bonds and stocks is that when their prices decline, the bonds return more going forward, guaranteed. What you are missing is, I think, that the bond market is already anticipating what you are afraid of. So, in other words, the worst is already over? If I purchase ...
by joer1212
Tue Jan 07, 2014 12:01 am
 
Forum: Investing - Help with Personal Investments
Topic: Should I add more money to a TIPS fund when its value drops?
Replies: 40
Views: 2298

Re: Should I add more money to a TIPS fund when its value dr

If you look at the long term price of VIPSX or TIP (the etf) you will see that they are both well above the "good price" IMO. See the chart below. The fixed yield at the current price is around 0.25% which is no bargain. IF you already own as much as your allocation I would not sell. But ...
by joer1212
Mon Jan 06, 2014 10:45 pm
 
Forum: Investing - Help with Personal Investments
Topic: Should I add more money to a TIPS fund when its value drops?
Replies: 40
Views: 2298

Re: Should I add more money to a TIPS fund when its value dr

I just bought VIPSX in my Roth IRA, up to its target allocation. When else are you going to buy, when the price is up? If interest rates were not at an historic low, I would wholeheartedly agree with you. But since interest rates are likely to rise at some point in the future, I'm wondering if it m...
by joer1212
Mon Jan 06, 2014 10:33 pm
 
Forum: Investing - Help with Personal Investments
Topic: Should I add more money to a TIPS fund when its value drops?
Replies: 40
Views: 2298

Re: Should I add more money to a TIPS fund when its value dr

One observation I would make is that 6% in TIPS is hardly worth the bother. What reason in particular do you have for holding TIPS? I hold TIPS for diversification. Also, keep in mind that TIPS comprise 6% of my portfolio, but this money is in my Roth IRA . This means that it is tax-free money, and...
by joer1212
Mon Jan 06, 2014 10:19 pm
 
Forum: Investing - Help with Personal Investments
Topic: Should I add more money to a TIPS fund when its value drops?
Replies: 40
Views: 2298

Re: Should I add more money to a TIPS fund when its value dr

When the value of a bond fund drops, the SEC yield goes up, which means the fund becomes more rewarding than before. So there is even more of a case than for stocks, where a recovery is not automatic and deteriorating fundamentals could keep stocks down for a long time, decades sometimes, with no e...
by joer1212
Mon Jan 06, 2014 10:09 pm
 
Forum: Investing - Help with Personal Investments
Topic: Should I add more money to a TIPS fund when its value drops?
Replies: 40
Views: 2298

Should I add more money to a TIPS fund when its value drops?

I own VIPSX (Vanguard Inflation-Protected Securities fund) in my Roth IRA. It currently makes up about 4% of my overall portfolio (target allocation is 6%). This fund has been declining in value for some time. Does this represent a buying opportunity? Or should I heed the advice of some portfolio ex...
by joer1212
Mon Jan 06, 2014 3:48 pm
 
Forum: Investing - Help with Personal Investments
Topic: Should I add more money to a TIPS fund when its value drops?
Replies: 40
Views: 2298

Re: Some questions for the 2014 tax year

For a $3k investment I wouldn't worry too much about it really. It won't make much difference to your tax rate. Alternatively you could have kept it in your normal taxable account but the tracked the value of this fund in a spreadsheet and then gifted him whatever you would have had. It really does...
by joer1212
Fri Jan 03, 2014 5:08 am
 
Forum: Investing - Help with Personal Investments
Topic: Some questions for the 2014 tax year
Replies: 2
Views: 646

Some questions for the 2014 tax year

I probably should have posted these questions before I went ahead and made some purchases in my Vanguard account, but it's still not too late to make some modifications. Anyway, here are my questions: (1) I put 3K into VASGX (Vanguard LifeStrategy Growth Fund) for my 12 year-old nephew. I plan on gi...
by joer1212
Thu Jan 02, 2014 3:44 pm
 
Forum: Investing - Help with Personal Investments
Topic: Some questions for the 2014 tax year
Replies: 2
Views: 646

Re: Is this fund tax efficient?

Vanguard's fund data says that the fund has a 10-year pre-tax return of 7.41% and a 10-year after-tax return of 5.81%, which indicates a tax-inefficient fund. (The tax cost for shorter time periods is lower, but that is because the fund had losses and thus didn't have much to distribute in gains.) ...
by joer1212
Fri Aug 23, 2013 1:13 pm
 
Forum: Investing - Help with Personal Investments
Topic: Is this fund tax efficient?
Replies: 5
Views: 493

Re: VG Total International Bond Fund is open

This is my situation. I do not have any more "room" in 401k or Roth IRAs right now for Vanguard's International Bond Fund but would like to add it to my portfolio. Should I just wait until next year when I have another 17.5K room in my 401k and 11K in Roths (me and wife)? just thinking I ...
by joer1212
Wed Aug 21, 2013 4:06 am
 
Forum: Investing - Theory, News & General
Topic: VG Total International Bond Fund is open
Replies: 82
Views: 10639

Re: Is the Gone Fishin' Portfolio flawed?

What some consider overly complex would be considered by others to be added diversification and use of non-correlated assets increasing return while limiting risk. Most endowment portfolios are built that way for the same reason. I disagree about the part about having more funds making withdrawals ...
by joer1212
Tue Aug 20, 2013 7:51 pm
 
Forum: Investing - Theory, News & General
Topic: Is the Gone Fishin' Portfolio flawed?
Replies: 22
Views: 5019

Is this fund tax efficient?

I am considering purchasing the Vanguard Precious Metals and Mining fund (VGPMX) to diversify my portfolio. The problem is that I don't have any tax advantaged space for it, so I am thinking of placing it in my taxable account. I am trying to create a modified version of The Gone Fishin' Portfolio, ...
by joer1212
Tue Aug 20, 2013 7:42 pm
 
Forum: Investing - Help with Personal Investments
Topic: Is this fund tax efficient?
Replies: 5
Views: 493

Re: Is the Gone Fishin' Portfolio flawed?

In my view, flawed, yes, because there's too many funds there for my liking. I have adopted Trev H's philosophy of doing the SUBH (Simplified Ultimate Buy & Hold strategy) http://www.bogleheads.org/forum/viewtopic.php?t=38374 Since I've added a couple of tilts to my portfolio, I've also increas...
by joer1212
Tue Aug 20, 2013 1:54 pm
 
Forum: Investing - Theory, News & General
Topic: Is the Gone Fishin' Portfolio flawed?
Replies: 22
Views: 5019

Re: Is the Gone Fishin' Portfolio flawed?

I was monitoring this portfolio after the crash of 2008 since at one time I was considering using it. The non-equity exposure funds YTD on 11/2/2008: Precious Metals was down 52.28% Short Term Corporate Bond was down 5.44% Inflation Protected Securities was down was down 7.85% It didn't bother chec...
by joer1212
Tue Aug 20, 2013 3:21 am
 
Forum: Investing - Theory, News & General
Topic: Is the Gone Fishin' Portfolio flawed?
Replies: 22
Views: 5019

Re: Is the Gone Fishin' Portfolio flawed?

Well, gold is only one commodity, hence undiversified, so phooey on that. And Vanguard Precious Metals and Mining isn't an investment in gold, so double phooey on that. (in theory, the fund is allowed to invest, I think 25% in gold, but it doesn't; does anybody know if it ever has?) Agreed. But he ...
by joer1212
Mon Aug 19, 2013 5:39 pm
 
Forum: Investing - Theory, News & General
Topic: Is the Gone Fishin' Portfolio flawed?
Replies: 22
Views: 5019

Re: Is the Gone Fishin' Portfolio flawed?

(hey, so how come Gone Fishin' doesn't have commodities?) Green considers "gold shares" (Vanguard Precious Metals and Mining fund) to be commodities. International bonds are another Wild West-like frontier. I wouldn't be surprised if a revised edition of Gone Fishin' is published which in...
by joer1212
Mon Aug 19, 2013 3:22 pm
 
Forum: Investing - Theory, News & General
Topic: Is the Gone Fishin' Portfolio flawed?
Replies: 22
Views: 5019

Re: Is the Gone Fishin' Portfolio flawed?

It seems overly complicated/tilted in my opinion. This resembles what actively managed portfolios are like. Lots of funds and redundancy. Keep it simple, stupid You should read your own posts. ? BTW the "stupid" part in the acronym is not directed at the OP. It's part of the acronym - als...
by joer1212
Mon Aug 19, 2013 3:16 pm
 
Forum: Investing - Theory, News & General
Topic: Is the Gone Fishin' Portfolio flawed?
Replies: 22
Views: 5019

Is the Gone Fishin' Portfolio flawed?

Just finished reading The Gone Fishin' Portfolio by Alexander Green. This is his recommended asset allocation, which he claims has outperformed the majority of other portfolios: Vanguard Total Stock Market Index (VTSMX) 15% Vanguard Small Cap Index (NAESX) 15% Vanguard Emerging Markets Index (VEIEX)...
by joer1212
Mon Aug 19, 2013 2:00 pm
 
Forum: Investing - Theory, News & General
Topic: Is the Gone Fishin' Portfolio flawed?
Replies: 22
Views: 5019

Re: Should I forget about purchasing individual stocks?

Joer the boxing analogy was right on!! Good Luck!


Thanks!
by joer1212
Tue Aug 13, 2013 11:15 pm
 
Forum: Investing - Help with Personal Investments
Topic: Should I forget about purchasing individual stocks?
Replies: 117
Views: 7029

Re: Should I forget about purchasing individual stocks?

MnD wrote:I consider it serious money, more serious than funds actually, because if you get sloppy with your stock picks it can matter a great deal.


Amen.
by joer1212
Thu Aug 08, 2013 3:02 am
 
Forum: Investing - Help with Personal Investments
Topic: Should I forget about purchasing individual stocks?
Replies: 117
Views: 7029

Re: Should I forget about purchasing individual stocks?

MnD wrote:
HomerJ wrote:Buying a few individual bonds at par is genuinely uncompensated risk. At best you'll get the coupon and your money back. At worst you'll lose everything.


This is exactly why I sold all my individual bond issues.
by joer1212
Thu Aug 08, 2013 2:57 am
 
Forum: Investing - Help with Personal Investments
Topic: Should I forget about purchasing individual stocks?
Replies: 117
Views: 7029

Re: Should I forget about purchasing individual stocks?

I don't know why an individual who is not dedicating their life to doing this is willing to do it in the first place. You are competing with professionals who eat, sleep and drink this stuff and have the latest and greatest tools available to them. Not sure how a regular Joe can really even play th...
by joer1212
Thu Aug 08, 2013 2:53 am
 
Forum: Investing - Help with Personal Investments
Topic: Should I forget about purchasing individual stocks?
Replies: 117
Views: 7029

Re: Should I forget about purchasing individual stocks?

“Learn from the mistakes of others. You can't live long enough to make them all yourself.” - Eleanor Roosevelt


She was brilliant.
by joer1212
Tue Aug 06, 2013 9:45 pm
 
Forum: Investing - Help with Personal Investments
Topic: Should I forget about purchasing individual stocks?
Replies: 117
Views: 7029

Re: Should I forget about purchasing individual stocks?

Just put your 5% in the next Microsoft and wait. Please tell me what the next Microsoft will be (PM before you post to everyone else) :D 8-) :moneybag He wants to make a lot of money with a small speculation, so putting the money on the next Microsoft seems like the way to do it. Not quite right. I...
by joer1212
Tue Aug 06, 2013 9:43 pm
 
Forum: Investing - Help with Personal Investments
Topic: Should I forget about purchasing individual stocks?
Replies: 117
Views: 7029

Re: Should I forget about purchasing individual stocks?

JoMoney wrote:I'm intrigued by this comment, are you suggesting that you hope to actively manage your way to riches, and THEN you'll passively invest in the market?


Yes, exactly. Or maybe do both, but my passive portfolio would be vastly larger.
by joer1212
Tue Aug 06, 2013 9:40 pm
 
Forum: Investing - Help with Personal Investments
Topic: Should I forget about purchasing individual stocks?
Replies: 117
Views: 7029

Re: Should I forget about purchasing individual stocks?

mptness wrote:You must have convinced yourself to forget about individual stocks by now. Most of us were convinced before the end of page one. :happy


You're quite right.
by joer1212
Tue Aug 06, 2013 9:38 pm
 
Forum: Investing - Help with Personal Investments
Topic: Should I forget about purchasing individual stocks?
Replies: 117
Views: 7029

Re: Should I forget about purchasing individual stocks?

I hate to sound naive, but how does an investor such as Warren Buffet consistently beat the S&P 500 if it is virtually impossible to do this? Doesn't this suggest that it is, in fact, a learnable skill, much like any other skill? Or are the comments I've received on my post suggesting that Warr...
by joer1212
Tue Aug 06, 2013 5:49 pm
 
Forum: Investing - Help with Personal Investments
Topic: Should I forget about purchasing individual stocks?
Replies: 117
Views: 7029
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