Search found 3387 matches

by David Jay
Tue Jun 27, 2017 10:23 pm
Forum: Investing - Help with Personal Investments
Topic: A few random investing questions from a beginner (first post)
Replies: 3
Views: 249

Re: A few random investing questions from a beginner (first post)

Welcome to the forum. I don't do I-bonds or Munis but I will comment on the others: 2. If you are holding for the long term, bond funds will on average recover their value (some of the NAV + is higher yield) within about half of their average duration. An intermediate bond fund is fine for a retirem...
by David Jay
Tue Jun 27, 2017 9:05 pm
Forum: Personal Finance (Not Investing)
Topic: Annuities
Replies: 12
Views: 810

Re: Annuities

A lot of people have told you that an annuity is not the right answer for someone in your life-stage and I agree. But let me give you some explanation: Variable annuities and Index annuities invest in the same products as you might: stocks, bonds, etc. But the average expenses of an annuity are abou...
by David Jay
Tue Jun 27, 2017 7:36 pm
Forum: Investing - Help with Personal Investments
Topic: Fee Based Financial Advisor w/Power of Attorney?
Replies: 12
Views: 494

Re: Fee Based Financial Advisor w/Power of Attorney?

neveragain wrote:...accounts should be changed along with fluctuations in the market.

From Bernstein's "Deep Risk", on market timing: "...mistiming the market is probably the most frequent and severe form of permanent capital loss."
by David Jay
Tue Jun 27, 2017 7:01 pm
Forum: Investing - Help with Personal Investments
Topic: For those of you planning to die with your Roth untouched...
Replies: 4
Views: 676

Re: For those of you planning to die with your Roth untouched...

Yes and yes.

I have my Roth full of stocks and I have it integrated into my overall asset allocation with my bonds in my tIRA.
by David Jay
Tue Jun 27, 2017 6:58 pm
Forum: Investing - Help with Personal Investments
Topic: 3% income
Replies: 9
Views: 1245

Re: Elder needs at least 3% income from taxable investments

I am thinking a little outside the box here. One way to do this would be to buy Vanguard's Long Term Corporate Bond Fund. That does have a lot of risk if the interest rates were to rise in that the principle would decline. But would not the bond fund :? still pay over 4 pecent of what one invested ...
by David Jay
Tue Jun 27, 2017 12:41 pm
Forum: Investing - Help with Personal Investments
Topic: Why do Vanguard Target Retirement funds have no REIT?
Replies: 6
Views: 383

Re: Why do Vanguard Target Retirement funds have no REIT?

Total Stock Market holds about 2.5% in REIT and TR holds Total Stock Market.

LS funds hold exactly the same funds as TR funds in accumulation years (no TIPS). The only real difference is that LS funds hold a fixed AA and TR funds adjust AA on a glideslope to retirement.
by David Jay
Tue Jun 27, 2017 11:55 am
Forum: Investing - Help with Personal Investments
Topic: 3% income
Replies: 9
Views: 1245

Re: Elder needs at least 3% income from taxable investments

Question 1: Does anyone have a good recommendation for investments that are safe/conservative, given an elderly age, but also might produce income of 3.5 percent per year. If you choose not to purchase an SPIA, I would put it all in bond funds - perhaps 2/3 in an intermediate fund and 1/3 in a shor...
by David Jay
Tue Jun 27, 2017 11:46 am
Forum: Investing - Help with Personal Investments
Topic: 3% income
Replies: 9
Views: 1245

Re: Elder needs at least 3% income from taxable investments

4% of portfolio spending is easily sustainable for someone 95 years old. Even 10% at age 100 is not crazy, she is very unlikely to deplete her portfolio. One way to be certain everything is covered is to purchase an SPIA. A quick check at immediateannuities.com shows the yield on an SPIA annuity for...
by David Jay
Tue Jun 27, 2017 11:36 am
Forum: Investing - Help with Personal Investments
Topic: Stuck with Ameriprise?
Replies: 12
Views: 893

Re: Stuck with Ameriprise?

Why do you feel it is all-or-nothing? Why not transfer everything else and leave the non-traded REIT with Ameriprise?

Certainly paying the AUM on one $10,000 REIT is better than the AUM fee on everything.
by David Jay
Mon Jun 26, 2017 9:51 pm
Forum: Investing - Help with Personal Investments
Topic: Making the jump from Edward Jones
Replies: 26
Views: 1657

Re: Making the jump from Edward Jones

TargetRetirement is a great way to get started managing your own portfolio.

Select the TR fund based on your comfort level with the asset allocation, not the "date" of the fund.
by David Jay
Sun Jun 25, 2017 10:18 pm
Forum: Investing - Help with Personal Investments
Topic: Two-Part Portfolio during Retirement; yay or nay?
Replies: 8
Views: 924

Re: Two-Part Portfolio during Retirement; yay or nay?

paveldatsyuk44 wrote: Why did you decide on the LS, instead of TR? If I may ask?

LS funds do not adjust, they hold a constant AA. (I am a control freak, I don't want my custodian changing my AA)
by David Jay
Sun Jun 25, 2017 9:56 pm
Forum: Investing - Theory, News & General
Topic: Yes, This Is Market Timing: If the CAPE Goes Above 30, Bring on the Larry
Replies: 80
Views: 5846

Re: Yes, This Is Market Timing: If the CAPE Goes Above 30, Bring on the Larry

And with 5, I would definitely be in something like the Larry if not something even more conservative. I do not think that Larry would claim that a heavily small-value portfolio is conservative. SCV has underperformed for long periods of time. How would you feel if SCV underperformed the Total Mark...
by David Jay
Sun Jun 25, 2017 8:20 pm
Forum: Investing - Help with Personal Investments
Topic: Analysis of my portfolio as I contemplate early retirement?
Replies: 8
Views: 884

Re: Analysis of my portfolio as I contemplate early retirement?

1. Every holding that is less than 2%-3% of your portfolio is "window dressing", that is - they are not big enough holdings to move the return of your portfolio but just provide complexity. In your tax-advantaged accounts I would combine any holding under 2% into another fund to simplify. ...
by David Jay
Sun Jun 25, 2017 7:58 pm
Forum: Investing - Help with Personal Investments
Topic: Analysis of my portfolio as I contemplate early retirement?
Replies: 8
Views: 884

Re: Analysis of my portfolio as I contemplate early retirement?

A 2.5% withdrawal rate is often considered a "perpetual" portfolio, you can retire at any age. Using that metric, your 6M will provide for you with $150K in-perpetuity (including future inflation).

You have won the game. You are set for retirement and can do as little work as you choose.
by David Jay
Sun Jun 25, 2017 7:48 pm
Forum: Investing - Help with Personal Investments
Topic: [Need] Roth IRA [Recommendations]
Replies: 1
Views: 160

Re: [Need] Roth IRA [Recommendations]

A Roth IRA is a great investing tool, but if you post your fund choices and expense ratios ("ER"s) on the funds in your 401K, folks would be glad to give you some advice on that. Both tools (Roth and 401K) are useful in their place because one is pre-tax and the other is post-tax. Also, th...
by David Jay
Sun Jun 25, 2017 3:58 pm
Forum: Investing - Theory, News & General
Topic: Yes, This Is Market Timing: If the CAPE Goes Above 30, Bring on the Larry
Replies: 80
Views: 5846

Re: Yes, This Is Market Timing: If the CAPE Goes Above 30, Bring on the Larry

The question is, do I wait until the CAPE hits 35? Let it ride? More than ever, investing feels like the casino, which is never a good thing... This quote from "Nisiprius" comes to mind: The stock market is risky. It is a form of greed to believe that there is some easy, effective way to ...
by David Jay
Sat Jun 24, 2017 4:36 pm
Forum: Investing - Help with Personal Investments
Topic: Two-Part Portfolio during Retirement; yay or nay?
Replies: 8
Views: 924

Re: Two-Part Portfolio during Retirement; yay or nay?

I am about the same age as your dad. Your parents should look carefully at having the higher wage earner delay SS to age 70. The benefit goes up 2/3 of 1% for every month delayed after FRA. This provides longevity insurance for either spouse as the higher benefit will become the survivor's benefit f...
by David Jay
Sat Jun 24, 2017 9:50 am
Forum: Investing - Help with Personal Investments
Topic: Target Date Retirement a Good Option?
Replies: 10
Views: 1321

Re: Target Date Retirement a Good Option?

I love the signature line of "neurosphere": If you have to ask if a target date fund is right for you, it is!

Or as I put it, there are 187,431 portfolios that are worse than a low expense target date fund. :wink:
by David Jay
Sat Jun 24, 2017 9:43 am
Forum: Personal Consumer Issues
Topic: emerald ash borer disaster
Replies: 35
Views: 1904

Re: emerald ash borer disaster

It does seem strange that they would replace large (eventually) shade trees like ash with any of these three.
by David Jay
Sat Jun 24, 2017 7:50 am
Forum: Investing - Help with Personal Investments
Topic: Transferring from AUM to three fund portfolio
Replies: 2
Views: 162

Re: Transferring from AUM to three fund portfolio

I think you can consider taking control now and slowly moving from the current funds to 3 funds. If you terminate the managed account you will stil retain the existing funds. You can then take all the funds with small gains and move them to their corresponding alternative. If there are large gains ...
by David Jay
Fri Jun 23, 2017 9:06 pm
Forum: Investing - Help with Personal Investments
Topic: Please Help Me Get Started Investing
Replies: 16
Views: 1057

Re: Please Help Me Get Started Investing

Do you have an employer sponsored retirement plan (401k, 403b, etc)? You are allowed to up $18,000 a year into an employer sponsored plan. That would mean only 2 years to put the entire $45,000 into tax advantaged accounts (18,000+5500 each year).
by David Jay
Fri Jun 23, 2017 12:01 pm
Forum: Investing - Help with Personal Investments
Topic: Northwestern Mutual High Fees to Vanguard
Replies: 24
Views: 1262

Re: Northwestern Mutual High Fees to Vanguard

Taxable is 17 funds holding a total of $25,000 :shock:
by David Jay
Fri Jun 23, 2017 12:00 pm
Forum: Investing - Help with Personal Investments
Topic: Northwestern Mutual High Fees to Vanguard
Replies: 24
Views: 1262

Re: Northwestern Mutual High Fees to Vanguard

Welcome to the forum! Questions: 1. How does this Vanguard portfolio look? 2. Should I consider diversifying the Vanguard portfolio more by adding some real estate funds and commodities funds, as I currently have? 3. Is it realistic that the portfolio with Northwestern Mutual could consistently out...
by David Jay
Thu Jun 22, 2017 9:57 pm
Forum: Investing - Help with Personal Investments
Topic: Northwestern Mutual High Fees to Vanguard
Replies: 24
Views: 1262

Re: Northwestern Mutual High Fees to Vanguard

Welcome to the forum! Questions: 1. How does this Vanguard portfolio look? 2. Should I consider diversifying the Vanguard portfolio more by adding some real estate funds and commodities funds, as I currently have? 3. Is it realistic that the portfolio with Northwestern Mutual could consistently outp...
by David Jay
Wed Jun 21, 2017 3:45 pm
Forum: Personal Finance (Not Investing)
Topic: 20 pct bonus on fixed index annuity
Replies: 22
Views: 1067

Re: 20 pct bonus on fixed index annuity

Would love to see it clearly illustrated on an annuity that supposedly has no fees. Wait. Did the sales person really claim it had no fees???? That is not within the realm of possible. Yea, I just assumed that was a line. Perhaps they meant no "fund fees" like a variable annuity. All the ...
by David Jay
Wed Jun 21, 2017 3:42 pm
Forum: Investing - Theory, News & General
Topic: Closet Index fund?
Replies: 31
Views: 1621

Re: Closet Index fund?

The phrase "closet index fund" is not precisely defined. Generally it refers to an actively-managed fund whose results closely follow those of a passively managed index fund (for some particular index, like the S&P500), but there is no general agreement on how close the results need t...
by David Jay
Wed Jun 21, 2017 2:54 pm
Forum: Investing - Theory, News & General
Topic: Closet Index fund?
Replies: 31
Views: 1621

Re: Closet Index fund?

Yep, pretty safe to say that this is a closet index fund where the managers so far have been paid for nothing: http://www.morningstar.com/funds/xnas/retsx/quote.html If this was a true active fund, how could I tell? Turnover is published - check Morningstar. Also look at the shape of the graph in b...
by David Jay
Wed Jun 21, 2017 1:10 pm
Forum: Investing - Help with Personal Investments
Topic: Are my Plan Administrative Fees high?
Replies: 12
Views: 538

Re: Are my Plan Administrative Fees high?

The Advisor fee may be an opt-out feature. That happened to me, after a custodian change the plan started changing my fund selections. I contacted HR and they said that in the bottom of some email they sent out they said that if I did not opt-out then I would be put into the advisory service of the ...
by David Jay
Wed Jun 21, 2017 1:06 pm
Forum: Investing - Theory, News & General
Topic: Closet Index fund?
Replies: 31
Views: 1621

Re: Closet Index fund?

I think the more important metric would be a comparison r squared and the total returns. Theoretically the active fund could have exactly double the movement of the S&P 500 and have a r squared of 1. At least I think that might be true. The total returns have been 1% less than the S&P 500 T...
by David Jay
Wed Jun 21, 2017 1:02 pm
Forum: Personal Finance (Not Investing)
Topic: 20 pct bonus on fixed index annuity
Replies: 22
Views: 1067

Re: 20 pct bonus on fixed index annuity

Hoops: Unless you can give us a link to the prospectus, it is really hard to guess what they are doing. That being the case, never let it be said that I needed facts before giving my opinion: 1. Virtually all indexed annuities use the SP500 index for calculation. The index does not include the divid...
by David Jay
Wed Jun 21, 2017 12:35 pm
Forum: Investing - Theory, News & General
Topic: Closet Index fund?
Replies: 31
Views: 1621

Re: Closet Index fund?

I think the more important metric would be a comparison r squared and the total returns. Theoretically the active fund could have exactly double the movement of the S&P 500 and have a r squared of 1. At least I think that might be true. The total returns have been 1% less than the S&P 500 T...
by David Jay
Wed Jun 21, 2017 12:03 pm
Forum: Investing - Theory, News & General
Topic: LifeStrategy or Target Retirement Funds?
Replies: 17
Views: 1780

Re: LifeStrategy or Target Retirement Funds?

i've always wondered why LS doesn't offer a classic 50-50 portfolio. one can always buy equal amounts of 60-40 and 40-60 (like some who own equal amounts of wellesley and wellington), but still... I think that the answer applies to you and to RadAudit (6:27am) - 10% just doesn't make that much diff...
by David Jay
Wed Jun 21, 2017 8:37 am
Forum: Investing - Theory, News & General
Topic: Larry Swedroe: Persistent Returns Remain Elusive
Replies: 15
Views: 2391

Re: Larry Swedroe: Persistent Returns Remain Elusive

investing blindly in ESOPs" How does one "invest" in an ESOP? I understood that by definition an ESOP is an ERISA governed retirement plan that requires a proportional share distribution across all participants (typically based on W-2 wages)? I know our plan does not allow for any vo...
by David Jay
Wed Jun 21, 2017 8:22 am
Forum: Investing - Theory, News & General
Topic: LifeStrategy or Target Retirement Funds?
Replies: 17
Views: 1780

Re: LifeStrategy or Target Retirement Funds?

The only concern I have in choosing between the two types of funds - Life strategy or Target - is the end game. early on the glide path of target funds is very good for folks who want to set it and forget it. I have DW, DD and DS in those funds in their tax deferred accounts which are the bulk of t...
by David Jay
Tue Jun 20, 2017 10:44 pm
Forum: Investing - Theory, News & General
Topic: What do BH think of this formula for an early retiree?
Replies: 26
Views: 3062

Re: What do BH think of this formula for an early retiree?

A 6% rate of return on a $1,200,000 portfolio yields $72,000 a year, which could cover 100% of expenses. Unfortunately, 6% withdrawal rates are not "safe". A more conservative 3 to 4% withdrawal rate would still likely cover 50% plus of expenses. A 3%-4% withdrawal rate is appropriate for...
by David Jay
Tue Jun 20, 2017 3:04 pm
Forum: Personal Consumer Issues
Topic: Commissioned Salesperson Opportunity
Replies: 8
Views: 912

Re: Commissioned Salesperson Opportunity

In a "startup" company, I think you would be better served with primarily a salary and a smallish commission. Salary is bonds, commission is equity. Think 2008. As a Michigander myself, I would be very cautious about a rep agreement. I sell capital equipment, and I can tell you that when t...
by David Jay
Tue Jun 20, 2017 2:53 pm
Forum: Investing - Theory, News & General
Topic: Not reinvesting dividends
Replies: 22
Views: 3295

Re: Not reinvesting dividends

I understand that the majority of Bogleheads own individual stocks in their portfolios as I saw it on one of the threads here (67% +/-) You have to be very careful about polls like that one for (2) reasons: 1. Self-selection: Only those who think individual stocks are interesting will even click on...
by David Jay
Tue Jun 20, 2017 11:46 am
Forum: Investing - Theory, News & General
Topic: What do BH think of this formula for an early retiree?
Replies: 26
Views: 3062

Re: What do BH think of this formula for an early retiree?

TL:

Yours is more elegant than mine, I will end up with some balance @ start of SS (due to bond gains and expenses deviating from projection) that will need to be transferred to my LS fund.

How often would you re-balance? Annually? Semi-Annually?
by David Jay
Tue Jun 20, 2017 11:40 am
Forum: Investing - Theory, News & General
Topic: What do BH think of this formula for an early retiree?
Replies: 26
Views: 3062

Re: What do BH think of this formula for an early retiree?

Looks a little too conservative. 10 years from now you may very well be 100% in stocks . Today, you don't need to be almost 70% in bonds to be sure to make it that far. Actually, no. "Months to FRA" is dynamic, every month a bit less is needed in bridge funds so ExpSet is on a glideslope ...
by David Jay
Tue Jun 20, 2017 11:28 am
Forum: Investing - Theory, News & General
Topic: What do BH think of this formula for an early retiree?
Replies: 26
Views: 3062

Re: What do BH think of this formula for an early retiree?

OP had a recent thread on increasing AA in late retirement (after sequence-of-returns risk between retirement and start of SS). This is his proposal for protecting the capital needed to get to SS and going to 80/20 after start of SS. Link here: https://www.bogleheads.org/forum/viewtopic.php?f=10&...
by David Jay
Tue Jun 20, 2017 11:18 am
Forum: Investing - Theory, News & General
Topic: What do BH think of this formula for an early retiree?
Replies: 26
Views: 3062

Re: What do BH think of this formula for an early retiree?

It works just fine, it keeps everything in one "bucket". I am sort of doing a "two-bucket" solution, in my structure: 1. You would just drop the entire 480K in LS Aggressive (80/20) and leave it alone, that is the long term portfolio 2 The 720K would then be a chunk (in my case, ...
by David Jay
Mon Jun 19, 2017 9:47 pm
Forum: Investing - Help with Personal Investments
Topic: Roth IRA for 24 year old son
Replies: 3
Views: 603

Re: Roth IRA for 24 year old son

TargetRetirement 2055. He should stay with it until he can afford a 3-fund portfolio in Admiral class (30,000+, depending on asset allocation). My son is 24 and opened his Roth this year (he got the saver's tax credit!). When my daughter opened her Roth about 4 years ago I recommended TR2050 to her.
by David Jay
Mon Jun 19, 2017 5:14 pm
Forum: Personal Finance (Not Investing)
Topic: Full comprehensive or liability only?
Replies: 30
Views: 2096

Re: Full comprehensive or liability only?

I drop comprehensive when my vehicles depreciate to about 3000-4000. I just dropped it on my 2008 Grand Prix with 135,000 miles.
by David Jay
Mon Jun 19, 2017 10:06 am
Forum: Investing - Theory, News & General
Topic: new to investing...[a little] help please?
Replies: 39
Views: 1450

Re: new to investing...[a little] help please?

Getting back to your original post, the $3000 needs to be used to open a Roth IRA. At your income level, there is no reason to invest any retirement funds (or funds not needed for 10+ years) anywhere other than a Roth. You can withdraw contributions to a Roth if necessary in an emergency. I love the...
by David Jay
Mon Jun 19, 2017 10:01 am
Forum: Investing - Theory, News & General
Topic: new to investing...[a little] help please?
Replies: 39
Views: 1450

Re: new to investing...[a little] help please?

In my opinion, you should do your investing as follows: 1. Invest in 401K only to the level required to get any employer match. [edit] I just read your post (above). 2. Invest in (2) Roth accounts (one for you, one for spouse) up to the maximum of $11,000. I recommend this because of your low tax r...
by David Jay
Mon Jun 19, 2017 9:59 am
Forum: Investing - Help with Personal Investments
Topic: ESOP payout rollover help
Replies: 8
Views: 616

Re: ESOP payout rollover help

Thank you David.The sale of the ESOP came sooner than expected so I was doing a little research and posts about EJ led me here .To be fair EJ has done well by me in my opinion for the options I chose.I was just looking for another alternative for this distribution and to not to cause a taxable even...
by David Jay
Mon Jun 19, 2017 9:43 am
Forum: Investing - Theory, News & General
Topic: new to investing...[a little] help please?
Replies: 39
Views: 1450

Re: new to investing...[a little] help please?

In my opinion, you should do your investing as follows: 1. Invest in 401K only to the level required to get any employer match. [edit] I just read your post (above). 2. Invest in (2) Roth accounts (one for you, one for spouse) up to the maximum of $11,000. I recommend this because of your low tax ra...
by David Jay
Sun Jun 18, 2017 2:46 pm
Forum: Investing - Help with Personal Investments
Topic: ESOP payout rollover help
Replies: 8
Views: 616

Re: ESOP payout rollover help

On the ESOP distribution, be careful that you do a direct rollover of the ESOP proceeds into an IRA account to avoid triggering a taxable event.

(I also work for an ESOP company)
by David Jay
Sun Jun 18, 2017 2:44 pm
Forum: Investing - Help with Personal Investments
Topic: ESOP payout rollover help
Replies: 8
Views: 616

Re: ESOP payout rollover help

Welcome to BH! 1. If you feel you need a "managed" account, I would strongly recommend low cost advisory service. There are several, but Vanguard's PAS (Portfolio Advisory Service) cost 0.3% per year, a full percentage point less than an EJ account before we even talk about indivIdual fund...
by David Jay
Sat Jun 17, 2017 10:27 pm
Forum: Investing - Help with Personal Investments
Topic: Variable Life Insurance as an Investment Vehicle
Replies: 39
Views: 2269

Re: Variable Life Insurance as an Investment Vehicle

Why don't you quote the Three Fund Portfolio? It would be more productive. And it would provide a Three Fund Portfolio advocate a little perspective. Or are you and advocate of fully vesting in the SP500? There is no single "3-fund" portfolio, individuals select an appropriate of percenta...

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