Search found 2678 matches

by Dale_G
Sat Aug 27, 2016 11:23 pm
Forum: Investing - Help with Personal Investments
Topic: zero-dividend investing in taxable account
Replies: 17
Views: 1299

Re: zero-dividend investing in taxable account

.... I should keep in mind that in the long term I will grow old and be on medicare and receive social security. .... Don't get "old" Poetical, just get more grown up. BTW Amundsen is one of my heroes. My tent is not Amundsen's tent, but a tent at old Byrd Station circa 1963-1964. Dale
by Dale_G
Sat Aug 27, 2016 10:46 pm
Forum: Investing - Help with Personal Investments
Topic: Do you count your emergency fund?
Replies: 34
Views: 1663

Re: Do you count your emergency fund?

Retired - no emergency fund - or the whole portfolio is the emergency fund - take your pock. My last emergency was about 1965. I was broke in Acapulco (pick pocket) and needed gas to get home to New England. $100 did the trick (thank you brother), but DW was not thrilled with the $5 motels. So yes, ...
by Dale_G
Sat Aug 27, 2016 10:24 pm
Forum: Investing - Help with Personal Investments
Topic: zero-dividend investing in taxable account
Replies: 17
Views: 1299

Re: zero-dividend investing in taxable account

It is food for thought. About 27% of my tax burden is due to qualified dividends taxed at the 15% rate. Not too bad, but the dividend income flows to MAGI and ends up costing higher Medicare and part D premiums. I looked at the 77 S&P500 companies on http://www.dividend.com/investor-resources/sp...
by Dale_G
Sat Aug 27, 2016 1:34 pm
Forum: Investing - Help with Personal Investments
Topic: Roth IRA conversion at 28% tax rate.
Replies: 19
Views: 895

Re: Roth IRA conversion at 28% tax rate.

Does your state tax Traditional IRA/401k withdrawals? Some states do not - other states may provide for a deduction. At a combined rate of 35%, I would not be doing any conversions.

Wait until you are retired and then decide if it is beneficial.

Dale
by Dale_G
Fri Aug 26, 2016 10:25 pm
Forum: Investing - Theory, News & General
Topic: My only fund not in the red today...how about you?
Replies: 23
Views: 1928

Re: My only fund not in the red today...how about you?

It takes only a couple of clicks to see what my portfolio did on a given day. Today, not much of anything, but August 22 was probably at least a 6 sigma event. The portfolio was down by 0.0014% - that's $1.40 per 100k. Talk about a dull market.

Dale
by Dale_G
Thu Aug 25, 2016 9:07 pm
Forum: Investing - Help with Personal Investments
Topic: "recordkeeping fee" - is this a lot?
Replies: 12
Views: 1080

Re: "recordkeeping fee" - is this a lot?

Well the over 5K accounts are subsidizing the under 5K accounts, but that is life. If the record keeping includes mailing quarterly reports, etc., the cost is definitely not outrageous.

Dale
by Dale_G
Thu Aug 25, 2016 8:59 pm
Forum: Investing - Help with Personal Investments
Topic: Are Vanguard Personal Advisory Services worth the extra %?
Replies: 21
Views: 1503

Re: Are Vanguard Personal Advisory Services worth the extra %?

In the event of a significant market downturn, tax loss harvesting may be worth considerably more than 0.3% - think 2008/2009. This is especially so if new money is being added to the account. I wouldn't be counting on a CPA to be flagging the TLH possibilities though. I think it would be good for B...
by Dale_G
Sat Aug 20, 2016 9:59 pm
Forum: Investing - Theory, News & General
Topic: Bonds in Taxable
Replies: 146
Views: 8170

Re: Bonds in Taxable

This is an interesting thread; tax drag, terminal values, the government owns this or that, etc, but there seems to be little focus on when the taxes are actually, due. I have a taxable account where I have always used equities to the extent possible and a traditional IRA that I have stuffed with bo...
by Dale_G
Sat Aug 20, 2016 12:24 am
Forum: Investing - Theory, News & General
Topic: Dividends - What's the point?
Replies: 12
Views: 2438

Re: Dividends - What's the point?

Phineas J. Whoopee wrote:There's no investment-return reason to prefer dividend funds, but setting aside any tax considerations there's no reason other than diversification to avoid them, either.


Very well put PJW.

Dale
by Dale_G
Fri Aug 19, 2016 5:36 pm
Forum: Investing - Help with Personal Investments
Topic: Is the Vanguard Variable Annuity a Fit?
Replies: 8
Views: 741

Re: Is the Vanguard Variable Annuity a Fit?

I was a long time Vanguard Annuity owner - since annuitized. Variable annuities (even the rare low cost versions) are suitable for someone who: 1. Has already maxed out all other tax free or tax deferred accounts 2. Expects to be in a lower tax bracket after retirement 3. Has a greater than 10-15 ye...
by Dale_G
Tue Aug 16, 2016 10:50 pm
Forum: Investing - Theory, News & General
Topic: How to replace the pre-Boglehead trading interest/time investment
Replies: 12
Views: 861

Re: How to replace the pre-Boglehead trading interest/time investment

It sounds like there is a hobby-like aspect to your investing. Hobbies can be both fun and stimulating. A lot of people have expensive hobbies - and there is nothing wrong with that either as long as the pleasure derived is greater than the cost. In theory, your fun trading should match market retur...
by Dale_G
Tue Aug 16, 2016 10:14 pm
Forum: Investing - Help with Personal Investments
Topic: Anyone else getting nervous and converting to cash as a short-term move?
Replies: 115
Views: 9694

Re: Anyone else getting nervous and converting to cash as a short-term move?

When I first began investing the S&P500 was about 180. I am glad I didn't go to cash when the S&P500 was 200 or 300 or 1,000. I am surely not thinking about going to cash just because we are nearing 2,200. It is time in the market, not timing the market that eventually pays off. Was the mark...
by Dale_G
Tue Aug 16, 2016 3:32 pm
Forum: Investing - Help with Personal Investments
Topic: moving my accounts to vanguard
Replies: 8
Views: 726

Re: moving my accounts to vanguard

The US market is about 70% large caps, 20% midcaps and 10% midcaps smallcaps. The S&P500 is almost all large caps. Vanguard may have suggested the S&P500 assuming that you were going to keep your small and midcaps. The Total Stock Market fund is about 70%, 20% and 10% - so one fund does it a...
by Dale_G
Tue Aug 16, 2016 12:02 am
Forum: Investing - Help with Personal Investments
Topic: moving my accounts to vanguard
Replies: 8
Views: 726

Re: moving my accounts to vanguard

acutal, you didn't provide enough information for a definitive answer (current tax rate, legacy interest, etc.), but it appears that you are a high earner. If you save the $80,000 per year as planned, the odds are good that you will end up with a substantial portfolio in the future - and if you &quo...
by Dale_G
Sat Aug 13, 2016 11:37 pm
Forum: Personal Finance (Not Investing)
Topic: How much umbrella insurance is enough?
Replies: 86
Views: 20802

Re: How much umbrella insurance is enough?

I have a 1MM umbrella policy which represents a fraction of vulnerable assets. What it buys me (I hope) is freedom from the hassle and expense of having to hire my own attorney to defend me against nuisance suits. (nuisance suit - A woman who has had "only a few drinks" is blinded by my 40...
by Dale_G
Fri Aug 05, 2016 11:40 pm
Forum: Investing - Help with Personal Investments
Topic: I have investments with EdJones...
Replies: 19
Views: 2767

Re: I have investments with EdJones...

It appears the closing fee is $95 per account not per fund. saver4life - spending $95 to close an EJ account is probably the one of the best bargains you will ever see. Spending that $95 will likely save you 10's of thousands over your investing career. But you do need to post your EJ investments an...
by Dale_G
Fri Aug 05, 2016 10:53 am
Forum: Investing - Theory, News & General
Topic: Zero ER ?
Replies: 25
Views: 2330

Re: Zero ER ?

I own a fund with zero ER, and have done for years. They've been running that fund for ten years now, and competitors have launched similar funds since, in order to get back their customers. If developments in the US run in the same direction, the move might not be so temporary. And what is the nam...
by Dale_G
Wed Aug 03, 2016 12:48 pm
Forum: Investing - Theory, News & General
Topic: Minimum bid sizes
Replies: 4
Views: 297

Re: Minimum bid sizes

Perhaps the seller specified, "all or none" to avoid multiple sales lots: 100 shares here, 262 shares there, etc.

Dale
by Dale_G
Tue Aug 02, 2016 10:42 pm
Forum: Investing - Help with Personal Investments
Topic: All Bonds in IRA for RMDs?
Replies: 7
Views: 782

Re: All Bonds in IRA for RMDs?

You are on the right track 13thstreet. All of our traditional IRAs are in bond funds to minimize RMDs. Equities are best held in Roth IRAs or taxable accounts for more favorable tax treatment and freedom from forced distributions.

Dale
by Dale_G
Tue Aug 02, 2016 1:17 am
Forum: Investing - Theory, News & General
Topic: Incremental Rebalancing strategy
Replies: 55
Views: 2822

Re: Incremental Rebalancing strategy

nmjack, you are not alone.

It is late - more later.

Dale
by Dale_G
Sun Jul 31, 2016 7:09 pm
Forum: Investing - Theory, News & General
Topic: How to switch between bonds / stocks to maximize profits
Replies: 23
Views: 1556

Re: How to switch between bonds / stocks to maximize profits

The Beardstown Ladies just forgot to account for their contributions when calculating their returns.

Dale
by Dale_G
Thu Jul 28, 2016 2:54 pm
Forum: Investing - Theory, News & General
Topic: Investors are getting ripped off on index fund fees
Replies: 4
Views: 1542

Re: Investors are getting ripped off on index fund fees

In the New York Life lawsuit, an index fund used in the two 401(k) plans was more profitable for the company than for plan participants, according to the complaint. I guess the complaint can say anything. It is unlikely however that an S&P500 fund with an er of 35 bp was more profitable for the...
by Dale_G
Wed Jul 27, 2016 10:12 pm
Forum: Investing - Help with Personal Investments
Topic: asset allocation too cash heavy: how to unwind?
Replies: 37
Views: 3179

Re: asset allocation too cash heavy: how to unwind?

I suspect the advice to DCA is based on your perceived risk aversion. I think paying down part of the mortgage is best for you, but if you choose to invest the cash in the market, hourly is likely to be better than weekly, monthly, quarterly or any other period :D .

Dale
by Dale_G
Wed Jul 27, 2016 5:05 pm
Forum: Investing - Help with Personal Investments
Topic: asset allocation too cash heavy: how to unwind?
Replies: 37
Views: 3179

Re: asset allocation too cash heavy: how to unwind?

cb99, you do not supply enough information for anyone to provide reasonable advice. Evidently you are a high earner and probably subject to high federal and state tax rates (likely California, otherwise the 1.3 MM mortage is a red flag for your overall plan.) You said, The remaining $195k is reasona...
by Dale_G
Mon Jul 25, 2016 5:52 pm
Forum: Investing - Help with Personal Investments
Topic: Market Entry Strategy Thoughts for a New Boglehead?
Replies: 38
Views: 2388

Re: Market Entry Strategy Thoughts for a New Boglehead?

Of course it is better to buy when the market is lower and avoid the yearly highs. And if you can invest at the yearly low of the market for the next 30 years, it will make a huge difference in the ending portfolio value. There is a little problem here though: Do you know with certainty (at any part...
by Dale_G
Fri Jul 22, 2016 2:44 pm
Forum: Investing - Theory, News & General
Topic: Declining or Rising equity allocation in retirement?
Replies: 110
Views: 7115

Re: Declining or Rising equity allocation in retirement?

Over the past 5 years I have permitted my equity allocation to increase, while only occasionally rebalancing to an increasing target. At 79 YO, equities are presently 69.3% of the portfolio. My forced withdrawals from our Traditional IRA and annuities amount to 2.2% of the portfolio. Of that amount,...
by Dale_G
Thu Jul 21, 2016 2:55 pm
Forum: Investing - Help with Personal Investments
Topic: Potential Rental Property
Replies: 22
Views: 1721

Re: Potential Rental Property

Kite, the fact that you live in the same complex is a big plus. Use care in choosing tenants and you should be good to go. If it works out well over the next couple of years, you might end up owning more units.

Dale
by Dale_G
Sun Jul 17, 2016 7:39 pm
Forum: Investing - Theory, News & General
Topic: Another look at corporate bonds
Replies: 209
Views: 12680

Re: Another look at corporate bonds

... snip ...I ran a 10 year comparison of Vanguard Intermediate-Term Treasury against funds that I actually own. This is real life. The best performer was the Diversified Bond Fund that I own. The growth of $10,000 for the most recent 10 year period was $16,635.29. Second was Vanguard Intermediate-...
by Dale_G
Sun Jul 17, 2016 12:38 pm
Forum: Investing - Help with Personal Investments
Topic: Personal Loan Interest Rate
Replies: 10
Views: 876

Re: Personal Loan Interest Rate

I think 4% is just fine for both of you because it is a business purpose loan. For a strictly personal loan (car or home down payment for example), I would be inclined to charge a current CD rate.

Dale
by Dale_G
Thu Jul 14, 2016 4:27 pm
Forum: Investing - Help with Personal Investments
Topic: NO bonds in my taxable account, really?
Replies: 38
Views: 3532

Re: NO bonds in my taxable account, really?

For the record, I have muni bonds in taxable, but only because my Traditional IRA is already 100% bonds. I am so glad I kept equities out of my 401k (now in an IRA anyway) and Traditional IRA to the extent possible given my target allocation. The reason - taxes. If I had loaded my Traditional IRA wi...
by Dale_G
Sun Jul 10, 2016 10:49 pm
Forum: Investing - Help with Personal Investments
Topic: Investing in Bonds in Taxable Account
Replies: 26
Views: 1818

Re: Investing in Bonds in Taxable Account

I don't expect to spend anything from the taxable account. My heirs will appreciate the fact that I keep all equities there - and in the Roth. Most of my bonds are in my traditional IRA. If equities have better returns than bonds in the future my heirs will benefit from a stepped up basis of the equ...
by Dale_G
Sun Jul 10, 2016 1:25 pm
Forum: Investing - Help with Personal Investments
Topic: Going to consolidate to these two funds - thoughts please
Replies: 11
Views: 972

Re: Going to consolidate to these two funds - thoughts please

Simple is better. Some here would not use the dividend fund, but if it makes you happy, keep it. I didn't check the math to see if the combination of the two funds adds to 50/50, but assuming it does - you are good to go.

Dale
by Dale_G
Sat Jul 09, 2016 10:47 pm
Forum: Investing - Help with Personal Investments
Topic: how much is enough? [in cash]
Replies: 16
Views: 2868

Re: how much is enough? [in cash]

I just checked my cash position. It is way high at 0.78% of the portfolio - and my target is 0.4%, those darn dividends have been accumulating :D Seriously though, my cash flow from SS and a tiny pension take care of my normal expenditures. If I need a new roof and a new car and the air conditioner ...
by Dale_G
Sat Jul 09, 2016 9:54 pm
Forum: Investing - Help with Personal Investments
Topic: wait for the drop?
Replies: 75
Views: 6683

Re: wait for the drop?

namrac, if some mysterious force converted 1.3mm of my portfolio to cash on Friday, I wouldn't be happy, but you can be assured that it would be reinvested before 4 pm on Monday. I wouldn't be waiting for a correction or even less likely a crash to reinvest. Think about it. All of those who are pres...
by Dale_G
Fri Jul 08, 2016 9:42 pm
Forum: Investing - Help with Personal Investments
Topic: Portfolio Review - [Using Edward Jones, how to simplify?]
Replies: 20
Views: 1735

Re: Portfolio Review - [Using Edward Jones, how to simplify?]

61 funds or thereabouts is a new high - even for Ed Jones. A junk bond fund in a taxable account for high earners? - totally ridiculous. LIZZY, you have a lot of work to do to unwind this mess, but it will probably be the most useful work you have ever done. My advice is to continue to learn and the...
by Dale_G
Fri Jul 08, 2016 8:45 pm
Forum: Investing - Theory, News & General
Topic: You like stocks and bonds, but how much?
Replies: 12
Views: 1082

Re: You like stocks and bonds, but how much?

A local bank needs to raise deposits, and offers you the following deal.


I am assuming this is a hypothetical question. No bank make a stipulation that 90% of an IRA would have to be invested.

If not hypothetical - what is the name of the bank? Are they open on Saturday?

Dale
by Dale_G
Fri Jul 08, 2016 8:42 pm
Forum: Investing - Theory, News & General
Topic: You like stocks and bonds, but how much?
Replies: 12
Views: 1082

Re: You like stocks and bonds, but how much?

basically you're asking would we accept an FDIC guaranteed 5% nominal on a completely illiquid investment for 10 years for 90% of our portfolio? That is not quite the question the OP asked, but absent tax ramifications**, I would be happy to move 90% of my entire portfolio to an illiquid 5% CD for ...
by Dale_G
Fri Jul 08, 2016 6:04 pm
Forum: Investing - Theory, News & General
Topic: You like stocks and bonds, but how much?
Replies: 12
Views: 1082

Re: You like stocks and bonds, but how much?

I would jump on this. My IRA is 100% in bonds - yielding about 3.8%, but with considerable risk given the possibility of rate rises sometime in the future. Since SS and a very modest pension cover my living expenses (neglecting taxes), I would be happy to have a guaranteed 5% nominal return over the...
by Dale_G
Fri Jul 08, 2016 12:06 am
Forum: Investing - Theory, News & General
Topic: International Bonds - Update
Replies: 55
Views: 4317

Re: International Bonds - Update

I have owned PCY (PowerShares Emerging Market Bond ETF) since 2011 and VWOB (Vanguard's Emerging Market Bond ETF (VGAVX Admiral shares)) since 2013. With bumps along the way, both funds have outperformed emerging market equities and Total Bond Market. I count the EM bonds as part of my 25% allocatio...
by Dale_G
Tue Jul 05, 2016 10:50 am
Forum: Investing - Help with Personal Investments
Topic: Upside/downside of a more complex portfolio
Replies: 14
Views: 1070

Re: Upside/downside of a more complex portfolio

In terms of comparing backtested returns for our current allocation across 11 funds, and a three fund portfolio, I assume that Portfolio Visualizer takes into account each fund's ER, but not management fees. As noted in my initial post, the more complex portfolio appeared to modestly outperform a t...
by Dale_G
Wed Jun 29, 2016 10:16 pm
Forum: Investing - Help with Personal Investments
Topic: Automated investment
Replies: 9
Views: 779

Re: Automated investment

Vanguard lets you make scheduled investments with a fixed dollar amount on specified dates. I don't see any mechanism to apportion a % of of a random dollar amount to various funds.

Dale
by Dale_G
Mon Jun 20, 2016 2:56 pm
Forum: Personal Finance (Not Investing)
Topic: Buying a house and IRS question
Replies: 19
Views: 1119

Re: Buying a house and IRS question

And how did the bank come up with the information?

Dale
by Dale_G
Sun Jun 19, 2016 12:09 am
Forum: Personal Finance (Not Investing)
Topic: High Credit Card Debt- Need Help
Replies: 107
Views: 7838

Re: High Credit Card Debt- Need Help

Sunniside, come clean with your husband. Twenty-five years ago I opened the mail and came across a bill for my wife's "undisclosed" credit card account in the amount of about $8,000. Not as large as your debt even after inflation, but a surprise none-the-less. She was making minimum paymen...
by Dale_G
Thu Jun 16, 2016 9:09 pm
Forum: Investing - Theory, News & General
Topic: "Where Vanguard’s CEO Sees The Fund Industry Going"
Replies: 4
Views: 1041

Re: "Where Vanguard’s CEO Sees The Fund Industry Going"

Thus, the company has built its own automated solution, called Vanguard Personal Advisor Services. The price for that product is 0.30% per year for the minimum investment of $50,000, scaling down as assets grow. What is this scaling down business? I might get interested at something less than .01% ...
by Dale_G
Wed Jun 15, 2016 11:25 pm
Forum: Investing - Help with Personal Investments
Topic: Riversource Variable Annuity - can I get out?
Replies: 9
Views: 875

Re: Riversource Variable Annuity - can I get out?

Agreed, since the OP is past any likely surrender period the OP should do a 1035 exchange to a Vanguard annuity - or if the annuity is in an Ira simply move to a Vanguard IRA. The OP should call Vanguard and ask for an annuity specialist. The process will be simple and will save the OP a bunch of do...
by Dale_G
Sat Jun 04, 2016 11:11 pm
Forum: Personal Finance (Not Investing)
Topic: Living Trusts
Replies: 30
Views: 2183

Re: Living Trusts

There are lots of things that I see far more often in this forum than in practice. No surprise, it is mostly the bad stuff that makes the news. I suspect many clients are well served, but those aggrieved are more vocal. That said, it appears that to the unwashed proletariat that legal fees bear lit...
by Dale_G
Sat Jun 04, 2016 10:25 pm
Forum: Personal Finance (Not Investing)
Topic: Reporting income to CC company
Replies: 30
Views: 3366

Re: Reporting income to CC company

So has anybody reported a lower income than previously, for example a retiree? Did your credit limit get lowered? ... A couple of years ago I made an on-line application for a Chase Visa card to go along with my Amex card (first issued in 1971). One of the last questions was something like, "W...
by Dale_G
Thu Jun 02, 2016 12:10 am
Forum: Personal Finance (Not Investing)
Topic: Risk free way to increase life style ?
Replies: 33
Views: 3439

Re: Risk free way to increase life style ?

I think the OP's plan is being misinterpreted. His monthly spending budget will be equal to 4%/12 * the portfolio value. The spending comes from his paycheck. Apparently after the spending and taxes there is an additional $5,000 from the paycheck available to add to the investment portfolio. Because...
by Dale_G
Sun May 29, 2016 11:57 pm
Forum: Investing - Help with Personal Investments
Topic: Vanguard Core Bond Fund
Replies: 16
Views: 2301

Re: Vanguard Core Bond Fund

From the March 31 semiannual report: Credit-quality ratings are obtained from Moody's and S&P, and the higher rating for each issue is shown. "Not Rated" is used to classify securities for which a rating is not available. Not rated securities include a fund's investment in Vanguard Mar...
by Dale_G
Sun May 29, 2016 1:13 am
Forum: Personal Finance (Not Investing)
Topic: Does the $5.45M exemption from estate taxes change your estate planning
Replies: 36
Views: 3370

Re: Does the $5.45M exemption from estate taxes change your estate planning

After the advent of increased exclusion and portability, I unfunded our bypass trusts and removed the pour-over element of our wills. The trust was no longer required from the estate tax perspective. Ours is a simple situation, with the bulk of the assets (except for a jointly owned home) in account...

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