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Re: Schwab Coverdell investment options

It's both; we have 529s set up, but are also maxing out the coverdells, in case we want to send junior to a private high school. I suppose I could just buy the Schwab total stock market index and match it with 20% bonds and do the balancing myself but I was hoping for something that was brainless, t...
by nydad
Tue Feb 04, 2014 12:25 am
 
Forum: Investing - Help with Personal Investments
Topic: Schwab Coverdell investment options
Replies: 4
Views: 203

Schwab Coverdell investment options

Hi - I've just opened a Coverdell at Schwab as I understood they had access to Vanguard funds. Big mistake. They do, but they charge a whopping $76 every time you buy or sell. Ouch. Shows the value of doing more research, I guess. My goal was to buy a target date fund, that expires more or less when...
by nydad
Mon Feb 03, 2014 10:14 pm
 
Forum: Investing - Help with Personal Investments
Topic: Schwab Coverdell investment options
Replies: 4
Views: 203

Re: Selling in taxable account?????

I would strongly suggest you consider a donor advised fund. You can donate appreciated shares and get the immediate deduction, that you can use to offset income from the sale of other shares. Since the money will be in a DAF, you can then give it out to charities of your choice over time, even in sm...
by nydad
Fri Jan 17, 2014 11:31 am
 
Forum: Investing - Help with Personal Investments
Topic: Selling in taxable account?????
Replies: 19
Views: 2137

Re: Need guidance please - mutual funds or get an advisor?

Hi - based on your initial post I think you should consider a solution like betterment or wealthfront which has professionally designed portfolios available for a relatively small management fee, and they handle the investing and rebalancing - all you do is send them a contribution. It sounds like y...
by nydad
Thu Jan 16, 2014 10:50 am
 
Forum: Investing - Help with Personal Investments
Topic: Need guidance please - mutual funds or get an advisor?
Replies: 11
Views: 752

Re: roth IRA for kids from lemonade stand

Note: I'm not planning on using their money - it will be a sort of gift, and I'm planning on telling them we will match future earnings into their Roth until age X (tbd) - We are funding 529s for them too, but Roths are appealing for different reasons... For the person who put 10k into the Roth - di...
by nydad
Thu Jan 16, 2014 12:11 am
 
Forum: Investing - Help with Personal Investments
Topic: roth IRA for kids from lemonade stand
Replies: 13
Views: 1055

Re: roth IRA for kids from lemonade stand

It's a good point, and of course $125 won't grow to much (unless we buy twitter...) :). But for me, receiving the statements, etc has it's own value. They already have a UTMA where gifts from grandparents go, but I'm intrigued by the idea of retirement planning at age 8. Maybe I'm just a bogleheads ...
by nydad
Wed Jan 15, 2014 8:21 pm
 
Forum: Investing - Help with Personal Investments
Topic: roth IRA for kids from lemonade stand
Replies: 13
Views: 1055

Re: roth IRA for kids from lemonade stand

Self employment income is also earned income. No Self employment taxes are due if earnings are under $400 I think- it's not just w2.

An open question is whether income paid for chores (eg mowing lawn, etc) from parent to child is earned income. Some say no, since such income isn't usually taxable.
by nydad
Wed Jan 15, 2014 7:59 pm
 
Forum: Investing - Help with Personal Investments
Topic: roth IRA for kids from lemonade stand
Replies: 13
Views: 1055

roth IRA for kids from lemonade stand

Hi - I'm considering opening a Roth IRA for my kids, aged 7 and 8. They have some income from a lemonade stand they set up this summer which did surprisingly well, and have something around $125 in income each. Schwab has custodial IRAs with a $100 minimum, so I was thinking this would be a good way...
by nydad
Wed Jan 15, 2014 5:53 pm
 
Forum: Investing - Help with Personal Investments
Topic: roth IRA for kids from lemonade stand
Replies: 13
Views: 1055

Re: "Gold to tank in 2014: Goldman Sachs"

Hmm. I'm not sure that gold should have a positive return. Just because something is desired, doesn't mean it will necessarily become more valuable. In the short term gold can be quite volatile - has consumer and industrial demand for gold dropped 30% this year? If not what explains the drop in the ...
by nydad
Wed Jan 15, 2014 3:01 pm
 
Forum: Investing - Theory, News & General
Topic: "Gold to tank in 2014: Goldman Sachs"
Replies: 94
Views: 7561

Re: High yield dividend vs bond purchase

Hi - Just some personal performance numbers to give texture here. I was also skeptical about bonds while back, but after reading the advice here, I decided on an allocation to bonds (a bit aggressive for my age :D) and bought a mix of PIMCO (401k), Vanguard TIPS (401k), VG Intermediate treasury (Rot...
by nydad
Wed Jan 15, 2014 2:55 pm
 
Forum: Investing - Help with Personal Investments
Topic: High yield dividend vs bond purchase
Replies: 5
Views: 616

Re: "Gold to tank in 2014: Goldman Sachs"

Gold isn't an asset that should appreciate in the long run. It has, basically, over the long term, a zero expected return. OTOH, it does tend to zig when other things zag. Case in point, stock market up 30% this year, gold down 30% this year. I know it doesn't always work that way, but some people t...
by nydad
Wed Jan 15, 2014 3:14 am
 
Forum: Investing - Theory, News & General
Topic: "Gold to tank in 2014: Goldman Sachs"
Replies: 94
Views: 7561

Re: A nice talk about gold in ones portfolio

I haven't been watching the market at all, just saw this news somehow because an online dealer sent me an email that my price target for silver (~$22) had been reached. So I'm thinking, stack some silver today or tomorrow. why wouldn't I buy when on sale? I guess I have to plug my numbers into the s...
by nydad
Mon Apr 15, 2013 5:44 pm
 
Forum: Investing - Theory, News & General
Topic: A nice talk about gold in ones portfolio
Replies: 103
Views: 6487

Re: Feeling like one of those 500 point market drop days soo

Looks like it's buying time. Gotta build up my stacks. Silver is cheap today!
by nydad
Mon Apr 15, 2013 5:41 pm
 
Forum: Investing - Theory, News & General
Topic: Feeling like one of those 500 point market drop days soon
Replies: 31
Views: 4647

Re: Analysis paralysis with cash-in refinance

interest rates may not be this low again. I don't have a crystal ball, but they are historically low, and are now trending upwards. I'd get some quotes on no-cost refi, even with PMI, and then perhaps take 50% of planned retirement savings and put it towards getting to 20% LTV (if you're going to be...
by nydad
Fri Mar 15, 2013 11:59 pm
 
Forum: Personal Finance (Not Investing)
Topic: Analysis paralysis with cash-in refinance
Replies: 7
Views: 650

Re: Finance Home Remodeling

The 401K loan would be at 3.25%, while a home equity would be somewhere in the 5-6% range. IMHO it doesn't make sense to compare interest rates like this - in a 401k loan (at least, mine works this way), you pay interest back to yourself. So your 401k is actually growing at that rate - instead of p...
by nydad
Fri Mar 15, 2013 11:54 pm
 
Forum: Personal Finance (Not Investing)
Topic: Finance Home Remodeling
Replies: 29
Views: 2107

Re: Portfolio Advice - Would be Grateful for your Help!

Hi - One thing struck me in your post: Current yearly gross income = $1MM+ New annual Contributions $17,500 his 401k + $6,000 company match. Total $23,500 $5,000 his Rollover 0 taxable Is the net income much lower, are you accounting for it elsewhere, or is there another plan for what to do with the...
by nydad
Fri Mar 15, 2013 11:45 pm
 
Forum: Investing - Help with Personal Investments
Topic: Portfolio Advice - Would be Grateful for your Help!
Replies: 17
Views: 1307

Re: Where to put Profits? Don't trust Bond Funds

Buy some alternative investments if you don't like bonds. You can get into a TIMO if you have money, that gives you a direct timber play. (Alternatively, you can buy and manage your own timberland, but this is not for the faint of heart). Real estate, as mentioned by others. If you want to keep your...
by nydad
Fri Mar 15, 2013 9:04 am
 
Forum: Investing - Help with Personal Investments
Topic: Where to put Profits? Don't trust Bond Funds
Replies: 37
Views: 3191

Re: Managed to unmanaged account... transition

I went through this a few years ago. I'd suggest moving everything over in kind. Vanguard selling fees are quite low. That way, you can slowly sell and manage your tax impact. I'd suggest just mapping out what the actual asset allocation is today, based on what you have (even if you don't like it) -...
by nydad
Thu Mar 14, 2013 4:13 pm
 
Forum: Investing - Theory, News & General
Topic: Managed to unmanaged account... transition
Replies: 16
Views: 620

Re: Where does GLD, SLV or any other commodities fit...

5% for me, split between GTU and physical. Consider GTU instead of GLD. Read prospectus carefully for any gold ETF. Look at NAV premiums before buying (and consider not buying if it's too high), and try to limit premiums over spot also when buying physical.
by nydad
Thu Mar 14, 2013 4:02 pm
 
Forum: Investing - Theory, News & General
Topic: Where does GLD, SLV or any other commodities fit...
Replies: 35
Views: 1380

Re: Investing Inheritance

Thanks NY Dad. If I set up an 80/20 Stocks/Bonds in index funds and needed (lets say it took me some time to find work after school) money could I sell a portion of my portfolio without penalty and rebalance to 80/20. I guess what I am asking is: are index funds fairly "liquid"? Not sure ...
by nydad
Thu Mar 14, 2013 12:55 am
 
Forum: Investing - Help with Personal Investments
Topic: Investing Inheritance
Replies: 19
Views: 1975

Re: ROTH IRA Cash Contribution?

I disagree - if you are confident you Will be under the Roth IRA contribution limits for the year then just make the contrib now - that way it's done And the money is out of your bank account and your Roth for the year is done (limit Is 5500 I think) If you want to keep it in money market for a few ...
by nydad
Tue Mar 12, 2013 8:43 pm
 
Forum: Investing - Help with Personal Investments
Topic: ROTH IRA Cash Contribution?
Replies: 4
Views: 395

Re: Investing for 100 years!!! less wordy version!!

If you're really interested in long term thinking, 100 years is nothing. You should be thinking on 1,000 or 10,000 year timelines. check out these guys: http://longnow.org/ . Some companies have even issued 100 year bonds, so you may want to buy some of those - but don't get me started on the intere...
by nydad
Tue Mar 12, 2013 3:48 pm
 
Forum: Investing - Help with Personal Investments
Topic: Investing for 100 years!!! less wordy version!!
Replies: 17
Views: 2886

Re: Investing for 100 years!!! less wordy version!!

Buy some managed timberland, harvest it and plant a fresh crop. In 100 years, harvest again. Repeat. :)

Note: I am not a timber expert, but done wisely (and managed well) timber can be a good super-long term investment IMHO.
by nydad
Mon Mar 11, 2013 3:52 pm
 
Forum: Investing - Help with Personal Investments
Topic: Investing for 100 years!!! less wordy version!!
Replies: 17
Views: 2886

Re: The mechanics of doing asset allocation

Why did you pick 80/20 for small/large division of blend instead of say 50/50? Also, what does 'FF' mean? FF= Fama French For blend, I split it as 50/50 as value and growth. The 80/20 split was for midcaps - since I don't have a 'midcap' allocation target, I just considered 80% of the midcaps as &q...
by nydad
Mon Mar 11, 2013 3:50 pm
 
Forum: Investing - Theory, News & General
Topic: The mechanics of doing asset allocation
Replies: 8
Views: 881

Re: The mechanics of doing asset allocation

This is what I do: 1) AA for domestic is based on LCV, LCG, SCV, SCG - using cascading asset allocation method. I have a tilt to value and small. 2) I use the morningstar xRay for each of the funds. For each "blend" percentage, I assign that half to value and half to growth. For midcaps, I...
by nydad
Mon Mar 11, 2013 11:17 am
 
Forum: Investing - Theory, News & General
Topic: The mechanics of doing asset allocation
Replies: 8
Views: 881

Re: Investing for 100 years!!! less wordy version!!

+1 to what Ladygeek said. A few other thoughts: 1) think about the zvi bodi plan for some of your assets which is I think 100% in tips ladder with appropriate maturity. This puts a floor on your expenses that is inflation protected. 2) this essentially means you would have two portfolios - one Which...
by nydad
Fri Mar 08, 2013 10:12 pm
 
Forum: Investing - Help with Personal Investments
Topic: Investing for 100 years!!! less wordy version!!
Replies: 17
Views: 2886

Re: Investing for 100 years!!! less wordy version!!

Congratulations! Interesting that you have such an aggressive AA. You've clearly hit your number, so why put more of it at risk? Also, investment real estate is not guaranteed to go up, as you know... so with 75%/25 and then the rest in RE, that's fairly risky. Have you considered just paying off yo...
by nydad
Fri Mar 08, 2013 9:24 pm
 
Forum: Investing - Help with Personal Investments
Topic: Investing for 100 years!!! less wordy version!!
Replies: 17
Views: 2886

Re: Nondeductible IRA contribution - Yes or No?

I think that is right for that part -- but if your income is over the Roth limits you cannot contribute to that account any more. So (and someone correct me if I am wrong) you will need to create and convert a new account each year.... but I think that's why it's called a "back-door" - in...
by nydad
Fri Mar 08, 2013 9:07 pm
 
Forum: Investing - Help with Personal Investments
Topic: Nondeductible IRA contribution - Yes or No?
Replies: 15
Views: 2148

Re: Should I Convert my Rollover IRA to Roth?

Not to threadjack but... If I'm in the same situation, but have a low-cost/VG 401k , would there be any reason not to roll my traditional IRA into the 401k vs converting it to Roth? To me a tax deferred is a tax not paid, and by rolling it back into the 401k, I don't pay any taxes and can open up th...
by nydad
Fri Mar 08, 2013 8:57 pm
 
Forum: Personal Finance (Not Investing)
Topic: Should I Convert my Rollover IRA to Roth?
Replies: 15
Views: 1738

Re: What's Your Favorite Hot Sauce?

+3 for tapatio
by nydad
Fri Mar 08, 2013 8:51 pm
 
Forum: Personal Consumer Issues
Topic: What's Your Favorite Hot Sauce?
Replies: 84
Views: 3675

Re: Investment Allocation [Asset Allocation, Portfolio Help]

agree with above 1) roll all IRAs to Vanguard and consolidate. Why pay those expense ratios? Once all of your accounts are rolled over, you'll have her 401k Vanguard her roth Vanguard his roth Vanguard his traditional IRA Vanguard his roth 401k at Fidelity you could even pay the tax and roll the tra...
by nydad
Fri Mar 08, 2013 8:35 pm
 
Forum: Investing - Help with Personal Investments
Topic: Investment Allocation [Asset Allocation, Portfolio Help]
Replies: 4
Views: 539

Re: Saving for 2014 Roth and 401k

sell the stocks, pay down the mortgage, and refi. Rates are under 4% (now around 3.5%). that will save you a ton of money...
by nydad
Fri Mar 08, 2013 8:08 pm
 
Forum: Investing - Help with Personal Investments
Topic: Saving for 2014 Roth and 401k
Replies: 6
Views: 464

Re: Nondeductible IRA contribution - Yes or No?

It's my understanding that a) if you don't have any rollover or traditional/deductible IRAs, and b) don't quality for a deductible contribution to the IRA in the first place that a backdoor roth is a no-brainer right? You fund it with after tax dollars, roll into the Roth, and "presto" - n...
by nydad
Fri Mar 08, 2013 8:06 pm
 
Forum: Investing - Help with Personal Investments
Topic: Nondeductible IRA contribution - Yes or No?
Replies: 15
Views: 2148

Re: The Experts: Are Higher-Than-Average Fees Worth It for F

Have you ever felt a sentiment here of bogleheads who would rather make 5% and pay 0% tax than make 10% and pay 15% tax. There's a real aversion to paying taxes...

If there was a fund that guaranteed 50% return and charged 10% fees, would any Bogleheads jump on board?? :)
by nydad
Fri Mar 08, 2013 7:54 pm
 
Forum: Investing - Theory, News & General
Topic: The Experts: Are Higher-Than-Average Fees Worth It for Funds
Replies: 21
Views: 1206

Re: Am I financially ready to buy this house?

new yorker here. Yes that house is probably a reasonable price - I mean, if that's what the market will bear, then that is the price you have to pay. I would encourage you to look outside of the city though, for that kind of money you can get a lot more house. Westchester, new jersey, etc. And you c...
by nydad
Fri Mar 08, 2013 7:43 pm
 
Forum: Investing - Help with Personal Investments
Topic: Am I financially ready to buy this house?
Replies: 40
Views: 2174

Re: Should I Invest, or Pay Debt?

On the savings bonds, you may want to hold on to those - those will continue to earn interest for 30 years I think - and if you got them a while ago they're likely earning more interest than any bonds you could buy today. Find out what you have, but consider keeping them until they hit 30 years matu...
by nydad
Fri Mar 08, 2013 4:36 pm
 
Forum: Investing - Help with Personal Investments
Topic: Should I Invest, or Pay Debt?
Replies: 56
Views: 4239

Re: Another newbie question about investment choices

I've thought about it, but it makes me nervous. I'm not sure what I'd choose. You've already made a great start - maxing out your retirement accounts, and buying a target date fund - those are excellent in my opinion - you get exposure to the whole US stock market, the whole international stock mar...
by nydad
Fri Mar 08, 2013 11:41 am
 
Forum: Investing - Help with Personal Investments
Topic: Another newbie question about investment choices
Replies: 14
Views: 771

Re: Help me... Bring sanity to this portfolio...

Don't you think the expense ration of Russell target retirement plans are horrible? I thought they were pretty bad... But then I am still learning. Ah, sorry I hadn't looked at that closely. They're not that horrible - the bond fund you hold in your 401k is 0.5 anyway - but if you want lower expens...
by nydad
Fri Mar 08, 2013 4:06 am
 
Forum: Investing - Help with Personal Investments
Topic: Help me... Bring sanity to this portfolio...
Replies: 7
Views: 600

Re: Should I Invest, or Pay Debt?

In general it is suggested that you max out tax advantaged vehicles before investing in taxable. in this case, I don't know your basis in those stocks, nor your tax bracket so I don't know how much capital gains tax you would have to pay on a sale. You need to understand this before selling - it dep...
by nydad
Fri Mar 08, 2013 12:13 am
 
Forum: Investing - Help with Personal Investments
Topic: Should I Invest, or Pay Debt?
Replies: 56
Views: 4239

Re: Help me... Bring sanity to this portfolio...

I have generally been very risk averse, and for the last 5 years or so kept most of my investments in Money Market and Bond funds... Desired Asset allocation: 60%-70% stocks.... If you're risk averse, then perhaps that stock allocation is too high. Given your income, expenses, and savings, do you t...
by nydad
Fri Mar 08, 2013 12:08 am
 
Forum: Investing - Help with Personal Investments
Topic: Help me... Bring sanity to this portfolio...
Replies: 7
Views: 600

Re: Should I Invest, or Pay Debt?

I vote to sell $10,500 of the stocks and dump it into Roth IRA for 2012/2013, put it in total market index, then use the $5k to pay down some debt - that way you've tax sheltered a lot of money - there is only a small window for tax shelter each year, so if you can stretch, I'd try to fill it. I als...
by nydad
Thu Mar 07, 2013 11:39 pm
 
Forum: Investing - Help with Personal Investments
Topic: Should I Invest, or Pay Debt?
Replies: 56
Views: 4239

Re: Dow who? New record high for gold

It says nothing about some sort of absolute performance of gold.


How would you define this, since gold is denominated/traded in different currencies around the world. If the dollar tanks against the euro, does gold go up or down, or is it not related?
by nydad
Thu Mar 07, 2013 11:35 pm
 
Forum: Investing - Theory, News & General
Topic: Dow who? New record high for gold
Replies: 13
Views: 1566

Re: [Help with Understanding] Bond Funds and interest rates

I like the book on bonds by Larry Swedroe: "The Only Guide to a Winning Bond Strategy You'll Ever Need" However, as pointed out above, bonds are quite complex - there are many different kinds of bonds, in different sectors, with different maturities, and understanding the price/yield relat...
by nydad
Thu Mar 07, 2013 11:33 pm
 
Forum: Investing - Theory, News & General
Topic: [Help with Understanding] Bond Funds and interest rates
Replies: 8
Views: 361

Re: Another newbie question about investment choices

Another solution would be to put your whole Roth into VTIVX. (see the allocations as they change here: https://personal.vanguard.com/us/funds/vanguard/TargetRetirementList#targetAnchor). Then you'd have a 1-fund portfolio - the dream of all bogleheads... :) When you choose a target retirement fund, ...
by nydad
Thu Mar 07, 2013 11:09 pm
 
Forum: Investing - Help with Personal Investments
Topic: Another newbie question about investment choices
Replies: 14
Views: 771

Re: NY Life Custom Whole Life Insurance - 28yo Single Father

There are a number of reasons to own an individual life insurance policy instead of being covered under a group policy.


Would love to hear about these. Thanks!
by nydad
Thu Mar 07, 2013 10:51 pm
 
Forum: Personal Finance (Not Investing)
Topic: NY Life Custom Whole Life Insurance - 28yo Single Father
Replies: 40
Views: 2095

Re: Is BIV/VBIIX worth keeping Now?

Here's another poster who had a similar question: My current asset allocation is 60% stocks 40% cash. I'm afraid to invest in bonds because my 401 plan offers mostly government bond funds and I've read that government bonds are in a bubble and therefore not a good buy. This question was from April, ...
by nydad
Thu Mar 07, 2013 8:51 pm
 
Forum: Investing - Help with Personal Investments
Topic: Is BIV/VBIIX worth keeping Now?
Replies: 20
Views: 962

Re: NY Life Custom Whole Life Insurance - 28yo Single Father

are you sure your company doesn't offer insurance? If they do, you can sometimes pay to expand it to cover multiples of your salary. I agree with the other posters, term life is what you want here likely.
by nydad
Thu Mar 07, 2013 8:46 pm
 
Forum: Personal Finance (Not Investing)
Topic: NY Life Custom Whole Life Insurance - 28yo Single Father
Replies: 40
Views: 2095

Re: That Frugal Thing You Do

Actually, the majority do qualify, i.e. present all points fairly from a neutral perspective using credible sources. I agree that those are important criteria, but what I meant by "qualify" was "pass the notability test": http://en.wikipedia.org/wiki/Wikipedia:Notability . As I ...
by nydad
Thu Mar 07, 2013 7:27 pm
 
Forum: Personal Consumer Issues
Topic: That Frugal Thing You Do
Replies: 500
Views: 96971

Re: That Frugal Thing You Do

Hmm... a few questions: 1) Isn't *saving* a key pre-requisite of *investing*? This thread is all about tips for saving money. That seems directly relevant to the "boglehead" philosophy. 2) We have entries like this: http://www.bogleheads.org/wiki/Video:_Start_with_a_Sound_Financial_Lifesty...
by nydad
Thu Mar 07, 2013 6:32 pm
 
Forum: Personal Consumer Issues
Topic: That Frugal Thing You Do
Replies: 500
Views: 96971

Re: Should I Convert my Rollover IRA to Roth?

3. Make a non deductible contribution to my Rollover IRA. Convert the entire thing to a Roth. This is most straightforward, but I"m not sure if there is a difference between a Rollover IRA and a Traditional IRA and if a brand new non-Rollover TIRA is necessary. I believe that in this case, you...
by nydad
Thu Mar 07, 2013 5:11 pm
 
Forum: Personal Finance (Not Investing)
Topic: Should I Convert my Rollover IRA to Roth?
Replies: 15
Views: 1738
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