Search found 2548 matches

by David Jay
Mon Feb 20, 2017 9:20 pm
Forum: Investing - Help with Personal Investments
Topic: Help with choosing funds
Replies: 2
Views: 169

Re: Help with choosing funds

What is the ER on the Baird bond fund? If this is less than 0.3%, I think bond is better than TIPS (others may have a different view on this). There is a lot of overlap between PRIMECAP and Institutional Index. Because the ER is lower, I would only use Institutional index. Then I would a portion of ...
by David Jay
Mon Feb 20, 2017 8:57 pm
Forum: Personal Finance (Not Investing)
Topic: What are the big things to get right?
Replies: 15
Views: 1193

Re: What are the big things to get right?

BH Philosophy: 1 Develop a workable plan 2 Invest early and often 3 Never bear too much or too little risk 4 Diversify 5 Never try to time the market 6 Use index funds when possible 7 Keep costs low 8 Minimize taxes 9 Invest with simplicity 10 Stay the course
by David Jay
Mon Feb 20, 2017 8:39 pm
Forum: Personal Finance (Not Investing)
Topic: More support for backdoor Roth? [Roth IRA Decision reversing Tax Court]
Replies: 14
Views: 934

Re: Interesting Roth IRA Decision reversing Tax Court

triceratop wrote: Incidentally, counsel also stated that Roth IRAs defer mandatory withdrawal for up to 30 years, which is obviously not the case as there are no RMDs for roths.


Actually, RMDs are required for the inheritor of the Roth. So 30 years is about right, a generational delay.
by David Jay
Mon Feb 20, 2017 4:44 pm
Forum: Investing - Help with Personal Investments
Topic: How are prices determined?
Replies: 18
Views: 738

Re: How are prices determined?

And, the "fund" generates lots and lots of excess cash if there are tons of folks buying high and selling low, and thus, the "fund" can grow exponentially (Billions) based on the original IPO of, for example, 1 Billion. If so, it seems similar to paper money not backed by equiv....
by David Jay
Mon Feb 20, 2017 4:28 pm
Forum: Investing - Help with Personal Investments
Topic: Advice on Retirement status, basic questions
Replies: 2
Views: 333

Re: Advice on Retirement status, basic questions

Nice start. Way better than me at age 34! 1. At BH we always advise that expenses matter. So the funds you should be using in your 401K should be the Vanguard and Fidelity funds with the tiny ERs. For me, that means getting rid of the Harbor Capital Appreciation fund and putting the money into one o...
by David Jay
Mon Feb 20, 2017 3:16 pm
Forum: Investing - Help with Personal Investments
Topic: Roll-over IRA
Replies: 10
Views: 414

Re: Roll-over IRA

My question above was more in general, does a fund need regular contributions in order for it to work. No, absolutely not. You can put a "chunk" of money into a fund, set it up to automatically reinvest the dividends and ignore it for a decade or two. There are interesting stories of acco...
by David Jay
Mon Feb 20, 2017 2:11 pm
Forum: Investing - Help with Personal Investments
Topic: Roll-over IRA
Replies: 10
Views: 414

Re: Roll-over IRA

My question above was more in general, does a fund need regular contributions in order for it to work. No, absolutely not. You can put a "chunk" of money into a fund, set it up to automatically reinvest the dividends and ignore it for a decade or two. There are interesting stories of acco...
by David Jay
Mon Feb 20, 2017 1:55 pm
Forum: Investing - Theory, News & General
Topic: What Could Stop Vanguard From World Domination? - Article by Ben Carlson
Replies: 15
Views: 2120

Re: What Could Stop Vanguard From World Domination? - Article by Ben Carlson

Best web source I could find for the top 401K funds here: http://www.thinkadvisor.com/2015/07/29/top-mutual-funds-in-401k-retirement-plans-brightsc [edit] Just in the Top 3 funds in each of 9 categories covered in the article, Vanguard has 790 Billion in 401K assets. Not a bad little sideline. So th...
by David Jay
Mon Feb 20, 2017 12:26 pm
Forum: Investing - Theory, News & General
Topic: What Could Stop Vanguard From World Domination? - Article by Ben Carlson
Replies: 15
Views: 2120

Re: What Could Stop Vanguard From World Domination? - Article by Ben Carlson

I don't know what the percentages are, and I'll bet a lot of the flows are ETF and/or institutional. This. I have noted just over the last year how many newbies coming to BH have some Vanguard options in their 401Ks. SP500, Total Bond, maybe a Mid-Cap, Small Cap. It is great for the 401K investors....
by David Jay
Mon Feb 20, 2017 12:12 pm
Forum: Investing - Help with Personal Investments
Topic: Roll-over IRA
Replies: 10
Views: 414

Re: Roll-over IRA

We don't know your total situation, I like Samsoes suggestion that you post all your info so we can see the "big picture". You can edit your head post (pencil icon) to include those details. Regarding #2 - as Samsoes says, it applies only to a rollover back into a 401K. I have co-mingled (...
by David Jay
Mon Feb 20, 2017 10:22 am
Forum: Investing - Help with Personal Investments
Topic: When do you need an annuity?.
Replies: 24
Views: 2049

Re: When do you need an annuity?.

Would it be fair to say that if you can turn your Ira money into a ladder of annual TIPS, say for 30 retirement years, that along with SS and whatever pensions you have, meet your annual expenses and still have a bit more in the stock market to cover the potential that you live more than 30 retirem...
by David Jay
Sun Feb 19, 2017 8:20 pm
Forum: Investing - Help with Personal Investments
Topic: When do you need an annuity?.
Replies: 24
Views: 2049

Re: When do you need an annuity?.

If you have 30X expenses in your retirement portfolio you do not need an annuity.

If you have a marginal portfolio, the mortality credit of an SPIA provides greater payouts for very long longevity and a guaranteed income stream.
by David Jay
Sun Feb 19, 2017 7:42 pm
Forum: Investing - Help with Personal Investments
Topic: new investor on 401K invest and holding question
Replies: 5
Views: 243

Re: new investor on 401K invest and holding question

Yes, waiting for stock market to be lower is market timing. The stock market is at or near a new high more than 60% of the time (because the long term trend is UP). This is a great article: http://awealthofcommonsense.com/2014/02/worlds-worst-market-timer/ SP500 already has some Mid-Cap. The total m...
by David Jay
Sun Feb 19, 2017 7:31 pm
Forum: Personal Finance (Not Investing)
Topic: Advice for my Age - 28
Replies: 19
Views: 1610

Re: Advice for my Age - 28

You are in a great position at your age. If you continue to save 20+ percent of your income, you will be Financially Independent 20 or 25 years. That opens up a whole world of options for you.

Paying off your home is a good use of additional cash.
by David Jay
Sun Feb 19, 2017 7:20 pm
Forum: Investing - Help with Personal Investments
Topic: Portfolio Recommendations
Replies: 2
Views: 229

Re: Portfolio Recommendations

Welcome to the forum. I think that you have made a great start at your age. (1) No recommendations, I think you have made good selections, you are fortunate to have some great options in your 401K. (2) You are already doing a good job - one thing that can increase your effective savings rate is to u...
by David Jay
Sun Feb 19, 2017 6:09 pm
Forum: Investing - Theory, News & General
Topic: Flagship? [T. Rowe Price retirement funds]
Replies: 20
Views: 2096

Re: Flagship?

:shock:
Some copy writer in the TRP marketing department hasn't researched the competition.
by David Jay
Sun Feb 19, 2017 6:04 pm
Forum: Investing - Help with Personal Investments
Topic: new investor on 401K invest and holding question
Replies: 5
Views: 243

Re: new investor on 401K invest and holding question

Regarding funds, I would not use guaranteed income, I would use Total Return Bond. If you want 70/30, which is reasonable, I would select 50% VG 500, 20% VG Small Cap and 30% Total Return Bond. Anything from 90/10 to 60/40 is acceptable at your age. It depends on your worry level. If you can "s...
by David Jay
Sun Feb 19, 2017 5:57 pm
Forum: Investing - Help with Personal Investments
Topic: new investor on 401K invest and holding question
Replies: 5
Views: 243

Re: new investor on 401K invest and holding question

You don't need to worry so much. You can change the funds later without any penalty or tax consequence. Start making the contributions, Don't sweat the funds. At this stage of your life the most important thing is the level of contributions. If you stop making contributions you can still manage the ...
by David Jay
Sat Feb 18, 2017 10:09 am
Forum: Investing - Theory, News & General
Topic: Jason Zweig / WSJ lists some books
Replies: 3
Views: 1276

Re: Jason Zweig / WSJ lists some books

This is an excellent list, but the original link is now behind the WSJ paywall. Here is a link to the same article on Jason's personal website: http://jasonzweig.com/best-books-for-in ... ort-shelf/
by David Jay
Fri Feb 17, 2017 9:21 pm
Forum: Investing - Help with Personal Investments
Topic: What is the equiv. to VASIX Life Strategy Income but without international, Balanced Index plus Total Bond, Other??
Replies: 16
Views: 880

Re: What is the equiv. to VASIX Life Strategy Income but without international?

Either shrug and accept the international, or buy the individual funds. If you really want nothing but US stocks and US bonds, that's two funds, and if you do the math and are realistic about how closely you need to hold to the asset allocation, you'll conclude that rebalancing doesn't need to be d...
by David Jay
Fri Feb 17, 2017 6:51 pm
Forum: Investing - Help with Personal Investments
Topic: What is the equiv. to VASIX Life Strategy Income but without international, Balanced Index plus Total Bond, Other??
Replies: 16
Views: 880

Re: What is the equiv. to VASIX Life Strategy Income but without international?

TR funds also have international holdings.

Buy the 2 underlying US funds directly. They are listed on the front page of the VG fund summary here: https://personal.vanguard.com/us/funds/ ... IntExt=INT

Total Stock
Total Bond
by David Jay
Fri Feb 17, 2017 6:39 pm
Forum: Investing - Help with Personal Investments
Topic: Leaving Edward Jones
Replies: 9
Views: 802

Re: Leaving Edward Jones

I thought I was being clever by purchasing stock in companies that had recently dropped due to bad news. I figured that everyone was selling off of emotions and I would benefit from it. Now I realize that I'm not outsmarting the market and that takes all the fun out of it for me. I think it was Zwe...
by David Jay
Fri Feb 17, 2017 4:32 pm
Forum: Investing - Help with Personal Investments
Topic: Leaving Edward Jones
Replies: 9
Views: 802

Re: Leaving Edward Jones

Robinhood is a nice place for a "play" account. It is no place for your retirement savings.
by David Jay
Fri Feb 17, 2017 4:30 pm
Forum: Investing - Help with Personal Investments
Topic: RMDs
Replies: 7
Views: 623

Re: RMDs

I am not yet taking RMDs, but it is my understanding that the RMD that you take in 2017 is calculated from your December 21, 2016 balance.

So why are you concerned about a future dividend distribution?
by David Jay
Fri Feb 17, 2017 4:16 pm
Forum: Investing - Theory, News & General
Topic: When to convert IRA to Roth IRA and how much?
Replies: 4
Views: 494

Re: When to convert IRA to Roth IRA and how much?

At your income level, I would not convert anything to Roth until I was in retirement. The key decision point between Traditional and Roth is your current and your projected tax brackets. Traditional is better if you expect to be in a lower tax bracket when you withdraw funds. Roth is better if you e...
by David Jay
Fri Feb 17, 2017 4:03 pm
Forum: Investing - Help with Personal Investments
Topic: What to do with my Savings?
Replies: 7
Views: 864

Re: What to do with my Savings?

Six months expenses would be recommended for the emergency fund.

If it was me, I would max-out my 401K ($18,000/yr) and live off of my savings until I had moved all my "investment" money to tax-advantaged accounts.
by David Jay
Fri Feb 17, 2017 2:31 pm
Forum: Investing - Help with Personal Investments
Topic: Need help with Smart plan
Replies: 5
Views: 174

Re: Need help with Smart plan

Thank for all the input David. Will definitely look into 2020 and 2015 fund. Quick question, if invested in TIPS/ bond index bond, is it same as money market or they are riskier. define risk - you keep avoiding this request. [edit] I don't mean to be rude, but do you really know what you fear? Let'...
by David Jay
Fri Feb 17, 2017 2:27 pm
Forum: Personal Finance (Not Investing)
Topic: Restrictive application for social security
Replies: 2
Views: 204

Re: Restrictive application for social security

I am confused, last year you said that you are collecting $48,000 in SS benefits. That is a lot more than $2443 * 12 mo.

Did your wife already claim a benefit?
by David Jay
Fri Feb 17, 2017 2:23 pm
Forum: Personal Finance (Not Investing)
Topic: Restrictive application for social security
Replies: 2
Views: 204

Re: Restrictive application for social security

The advantage is that she can take a spousal benefit of $1221 per month and her benefit can continue to grow to age 70. At age 70 her benefit will be $1463 x 1.32 = $1931 So she takes $242 less for 4 years in exchange for $468 more per month after age 70. Since average life expectancy is well into t...
by David Jay
Fri Feb 17, 2017 2:00 pm
Forum: Investing - Help with Personal Investments
Topic: Need help with Smart plan
Replies: 5
Views: 174

Re: Need help with Smart plan

You have do decide how much growth you need to meet your retirement goals (we also do not know how many years to retirement). But if you want a relatively safe fund that also provides growth, I would select the 2015 fund and put all of your money in that fund. It is a "fund-of-funds" that ...
by David Jay
Fri Feb 17, 2017 1:40 pm
Forum: Investing - Help with Personal Investments
Topic: Need help with Smart plan
Replies: 5
Views: 174

Re: Need help with Smart plan

Let me suggest this chart at Vanguard: https://www.vanguard.com/us/insights/sa ... llocations

It shows the combination of long term growth rate, maximum annual gain, maximum annual loss for various asset allocations.
by David Jay
Fri Feb 17, 2017 1:37 pm
Forum: Investing - Help with Personal Investments
Topic: Need help with Smart plan
Replies: 5
Views: 174

Re: Need help with Smart plan

Please define what "least risky" means to you. There are shallow risks (like stocks dropping 30% tomorrow) and deep risks (you are homeless and eating dog food in retirement). For instance, Stable Value is great for shallow risks - like the annuity advertisements on the radio say - "y...
by David Jay
Fri Feb 17, 2017 1:16 pm
Forum: Investing - Help with Personal Investments
Topic: A 2-Fund Portfolio idea. Opinions Welcome!
Replies: 10
Views: 692

Re: A 2-Fund Portfolio idea. Opinions Welcome!

I agree with LiveSimple. I would make my fund selections based on my plan, not make my plan based on my fund selections.
by David Jay
Fri Feb 17, 2017 1:14 pm
Forum: Investing - Help with Personal Investments
Topic: Inherited IRA with Dozens of Individual Stocks - Liquidate First or Let Vanguard Do It?
Replies: 8
Views: 451

Re: Inherited IRA with Dozens of Individual Stocks - Liquidate First or Let Vanguard Do It?

Your kid's accounts should be able to be counted in the family total for status - that is - if you are say, a Voyager Plus member ($500,000 across all family accounts) then they should also qualify and the cost will be $2 per trade at VG. My wife's account puts me into the Voyager Plus category, I w...
by David Jay
Fri Feb 17, 2017 12:15 pm
Forum: Personal Finance (Not Investing)
Topic: Portfolio checkup please
Replies: 1
Views: 180

Re: Portfolio checkup please

1. I would get out of those proprietary funds in the previous employer's 401K. If your 401K allows rollovers of previous 401K funds, put them there. An interesting article on Fortive/Danaher here; http://finance.yahoo.com/news/danaher-completes-fortive-spin-off-125312990.html You say the funds are i...
by David Jay
Fri Feb 17, 2017 11:30 am
Forum: Investing - Help with Personal Investments
Topic: New to investing (25 yr/old). Diverse Vanguard Portfolio? Overlaps I am missing?
Replies: 50
Views: 2195

Re: New to investing (25 yr/old). Diverse Vanguard Portfolio? Overlaps I am missing?

Good. You have to ultimately pick something you feel comfortable with and something you won't change on a whim. This is so important. Changing your portfolio to follow the latest trend will kill your portfolio performance. For instance, Small Value could under-perform 10 years in a row. You have to...
by David Jay
Fri Feb 17, 2017 11:20 am
Forum: Investing - Theory, News & General
Topic: "preview" of bear market
Replies: 16
Views: 2906

Re: "preview" of bear market

I think that your assumption that BND will not change (much) is very reasonable. The last bear market was driven by the financial crisis, which affected the debt markets. Normally I would expect bond to move less than 3%-5% (either way). [edit] This Vanguard chart says that the worst-ever annual per...
by David Jay
Fri Feb 17, 2017 11:05 am
Forum: Investing - Theory, News & General
Topic: An Effective DC Plan: The Flex MMM Model
Replies: 19
Views: 1754

Re: An Effective DC Plan: The Flex MMM Model

There are some of us who make <40k. I mean, I'm at the very beginning of my career and in graduate school for now, but yes it is possible to be a Boglehead on a low income. Didn't stop me from saving $20k+ last year :) Okay fine, last year I made slightly more than 40k but most years an equal amoun...
by David Jay
Fri Feb 17, 2017 10:48 am
Forum: Investing - Theory, News & General
Topic: What's a good analogy for average returns?
Replies: 45
Views: 2655

Re: What's a good analogy for average returns?

If you have one foot on burning coals and one foot in an ice bucket, on average your feet are quite comfortable Not to mention the fact that you could also claim to have an above-average number of feet for a human. (Since there are a lot more people with no feet or only one foot than there are peop...
by David Jay
Thu Feb 16, 2017 10:11 pm
Forum: Investing - Help with Personal Investments
Topic: Help for a newbie
Replies: 7
Views: 485

Re: Help for a newbie

I would recommend starting with the TargetRetirement family of funds. These are funds-of-funds that hold 10,000 US and International stocks, plus US and international bonds. Based on your age, the default fund would be TR 2040, but you can adjust that as you learn and develop your personal asset all...
by David Jay
Thu Feb 16, 2017 6:55 pm
Forum: Investing - Help with Personal Investments
Topic: 57 yr old new Bogle student looking for portfolio advice
Replies: 8
Views: 823

Re: 57 yr old new Bogle student looking for portfolio advice

JohnB48 wrote: I'm leaning towards a simple 4 x 25% allocation to start with.


I would definitely not put 25% in international bonds. Way less.

Go Look at LS Moderate and LS Conservative to see how they split it up.
by David Jay
Thu Feb 16, 2017 5:04 pm
Forum: Investing - Help with Personal Investments
Topic: 57 yr old new Bogle student looking for portfolio advice
Replies: 8
Views: 823

Re: 57 yr old new Bogle student looking for portfolio advice

You have exactly the same funds that are in the "Lifestrategy" family of all-in-one funds, nothing wrong there. I intended that sentence to come across as an endorsement of your 4 fund choices. The best minds at Vanguard chose the same funds. You can also look up the LS funds to see how V...
by David Jay
Thu Feb 16, 2017 4:42 pm
Forum: Investing - Help with Personal Investments
Topic: 57 yr old new Bogle student looking for portfolio advice
Replies: 8
Views: 823

Re: 57 yr old new Bogle student looking for portfolio advice

Around here, the 3-fund portfolio is popular - everything you listed but without the international bonds. You have exactly the same funds that are in the "Lifestrategy" family of all-in-one funds, nothing wrong there. I have a belief in the small value premium, so I add 10% Small Cap Value...
by David Jay
Thu Feb 16, 2017 1:32 pm
Forum: Investing - Help with Personal Investments
Topic: Is 30% stock enough to keep up with (or beat) inflation?
Replies: 39
Views: 3041

Re: Is 30% stock enough to keep up with (or beat) inflation?

So withdrawal rate makes a lot more of a difference in portfolio failure rates than AA does (if you stay within parameters)? So unless one wants to leave a legacy, if one is conservative, why take the extra risk? And is it just ingrained in CFPs (and simulation tools) that 60/40 is the best overall...
by David Jay
Thu Feb 16, 2017 12:57 pm
Forum: Investing - Theory, News & General
Topic: An Effective DC Plan: The Flex MMM Model
Replies: 19
Views: 1754

Re: An Effective DC Plan: The Flex MMM Model

There are plenty of us who have gone our entire working lives without seeing a single year of six-digit family income. I think the Flex MMM model is aimed primarily at workers with incomes that are considerably lower than six digits. Also, the model is specifically meant to aid low income workers w...
by David Jay
Thu Feb 16, 2017 12:07 pm
Forum: Investing - Help with Personal Investments
Topic: What is it best to do with cash sitting around in a savings account?
Replies: 13
Views: 1591

Re: What is it best to do with cash sitting around in a savings account?

Bonds potentially face the risk of rising interest rates and loss of principal value. Intermediate term (and ST) Bond FUNDS do not face a RISK of rising interest rates, they face a yield BENEFIT from rising interest rates. I think your fear of bonds is largely misplaced. If you are not withdrawing,...
by David Jay
Thu Feb 16, 2017 11:53 am
Forum: Investing - Help with Personal Investments
Topic: Why am I not tracking my indices?
Replies: 16
Views: 703

Re: Why am I not tracking my indices?

Yup, I assumed you were using an active spreadsheet that retrieves NAV automatically.

The WCI is much simpler and uses your hand-entered information.

I withdraw the objection, your honor...
by David Jay
Thu Feb 16, 2017 11:49 am
Forum: Investing - Theory, News & General
Topic: An Effective DC Plan: The Flex MMM Model
Replies: 19
Views: 1754

Re: An Effective DC Plan: The Flex MMM Model

I read the OP's first link, a two page summary, but I have not read about the plan in any further detail. Based on the two page summary, I cannot envision a successful state-sponsored retirement program for low-income workers that would approach the retirement income flow that low-income BHs could ...

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