Search found 2837 matches

by David Jay
Mon Mar 27, 2017 3:35 pm
Forum: Personal Finance (Not Investing)
Topic: Salvaging help please after Whole Life misrepresentation
Replies: 44
Views: 5804

Re: Salvaging help please after Whole Life misrepresentation

What did the author do with this? They seemed to think they were misled. Their salesman/adviser should have made it clear there will not be good returns for many years. People buying cash value life insurance should understand it is something for the long haul. Over a few decades it should give 6-7...
by David Jay
Mon Mar 27, 2017 3:17 pm
Forum: Investing - Theory, News & General
Topic: Forbes article: "An S&P 500 Index Fund -- Is It A Good Investment?"
Replies: 8
Views: 1110

Re: Forbes article: "An S&P 500 Index Fund -- Is It A Good Investment?"

Since you asked (you did ask, didn't you?), here is my ditty on the SP500: When I hold the S&P 500, I own a piece of the companies that: Produce the electricity to light my home (AEP, Alliant) Produce the natural gas to heat my home (Apache, Anadarko) Make or distribute the food and drink I cons...
by David Jay
Mon Mar 27, 2017 3:14 pm
Forum: Investing - Theory, News & General
Topic: Are passive funds dependent on active funds?
Replies: 19
Views: 920

Re: Are passive funds dependent on active funds?

So, theoretically, if the index funds share of 10% of the total market increases to 20% or maybe 30% (with the current trend and shift towards indexing) what would be the impact on the overall stock market? Are there any studies or simulations done for such a scenario and if yes, what are the concl...
by David Jay
Mon Mar 27, 2017 3:02 pm
Forum: Investing - Help with Personal Investments
Topic: help? 401k rollover to ROTH IRA, quite confused
Replies: 9
Views: 345

Re: help? 401k rollover to ROTH IRA, quite confused

What's the deal with that 20% withheld? If its not the taxes, why is it withheld? Do I need to then go back to the previous employer plan and ask for them to release that cash? The deal is: You can only do a rollover of a pre-tax 401K to a traditional IRA without tax consequences. If you had done a...
by David Jay
Mon Mar 27, 2017 11:32 am
Forum: Investing - Help with Personal Investments
Topic: help with 401k options
Replies: 3
Views: 213

Re: help with 401k options

Are you eligible (i.e. below the income limit) for a Roth IRA? If so, I would invest my stock portion of my portfolio in the low-cost Vanguard 401K funds and open a Roth to hold my bonds in Vanguard Total Bond. At this point your bond allocation is only $1100, you can purchase Total Bond as an ETF (...
by David Jay
Mon Mar 27, 2017 11:18 am
Forum: Investing - Help with Personal Investments
Topic: Achieving the desired duration
Replies: 3
Views: 234

Re: Achieving the desired duration

What is your timeframe and rate of actual withdrawal of your money? I am having a hard time imagining a need for a 2 year duration.

The answer is 2.35/1 (MM to NYLT).
by David Jay
Sun Mar 26, 2017 10:04 pm
Forum: Investing - Help with Personal Investments
Topic: Should I stick with 401K funds or choose a self directed account?
Replies: 12
Views: 720

Re: Should I stick with 401K funds or choose a self directed account?

... using only VINIX in my 401K and diversify through my Roth IRA and brokerage. This is the route that I would go. The SP500 is a great index fund. Over time you can put your bond allocation in your Roth (for tax efficiency) and put Small Cap and International stocks into either your Roth or in yo...
by David Jay
Sun Mar 26, 2017 9:15 pm
Forum: Investing - Help with Personal Investments
Topic: Reallocating retirement investment: wait or makes no difference?
Replies: 11
Views: 723

Re: Reallocating retirement investment: wait or makes no difference?

I have the same question: Should I wait for a partial recovery of the $2k drop last week in my Large Cap fund? Or will any recovery in Large Cap fund over the next month(s) usually mean that VBR Small Cap Value will have risen as well - thereby making no major difference to hold off reallocating my...
by David Jay
Sun Mar 26, 2017 8:24 pm
Forum: Investing - Theory, News & General
Topic: Christine Benz's Three Bucket System
Replies: 43
Views: 3789

Re: Christine Benz's Three Bucket System

I just got my SS statement in the mail the other day. It looks like SS benefits will more than cover our current annual expenses, so we don't need any safe buckets. That said, a 60/40 portfolio will work fine for everything else. Does that mean we have 3 buckets? 60% stocks, 40% bonds, and SS? I do...
by David Jay
Sun Mar 26, 2017 6:54 pm
Forum: Investing - Help with Personal Investments
Topic: Reallocating retirement investment: wait or makes no difference?
Replies: 11
Views: 723

Re: Reallocating retirement investment: wait or makes no difference?

It's your money, but I really don't think that 10 years will assure outperformance by small-cap. I would be less worried about your strategy if you were 30 years from retirement. If I may ask, why the whole 100% thing? How about a nice tilt to small cap, say 30% or 40%? French-Fama suggest outperfor...
by David Jay
Sun Mar 26, 2017 4:31 pm
Forum: Investing - Help with Personal Investments
Topic: Why is 3 Fund Portfolio Failing consistently for me ?
Replies: 13
Views: 2839

Re: Why is 3 Fund Portfolio Failing consistently for me ?

First, the differences are negligible when looking at only 5 years. Every measure is similar, including Sharpe Rat, etc. Your 2-fund is not a 2-fund, the Schwab retirement fund holds a number of funds "under the covers". Too many funds to understand the exact differences at a glance. Over ...
by David Jay
Sun Mar 26, 2017 4:12 pm
Forum: Investing - Help with Personal Investments
Topic: Should I stick with 401K funds or choose a self directed account?
Replies: 12
Views: 720

Re: Should I stick with 401K funds or choose a self directed account?

Your Vanguard TR fund is about 40 basis points (0.4%) cheaper than the T.R.Price date fund. It would make sense to use the SDA option if your account balance is more than $15,000. The $50 annual cost of the SDA is "paid for" with the savings in ER. The only way I would stay in the generic ...
by David Jay
Sat Mar 25, 2017 8:36 pm
Forum: Investing - Help with Personal Investments
Topic: Allocation percentage for new 3 fund portfolio & goal advice
Replies: 2
Views: 262

Re: Allocation percentage for new 3 fund portfolio & goal advice

I see this is your first post - welcome to the forum. It is great to see a 20-something getting his investing philosophy in place. International - 1/4 to 1/3 of stocks is a common recommendation. I would work on getting the truck paid off, then bump your retirement savings rate to 10% and put the re...
by David Jay
Sat Mar 25, 2017 5:21 pm
Forum: Investing - Help with Personal Investments
Topic: Too Narrow? Or overlap?
Replies: 5
Views: 357

Re: Too Narrow? Or overlap?

You have a lot of duplication and overlap. Did you have a strategy for selecting those funds? I would recommend that you go over to the Bogleneads Startup Kit in the WIKI and read the section on Asset allocation, the section on IPS and the section on Portfolios. link here: https://www.bogleheads.org...
by David Jay
Sat Mar 25, 2017 11:31 am
Forum: Personal Finance (Not Investing)
Topic: Do you have enough? How I realized yeah I do.
Replies: 64
Views: 9283

Re: Do you have enough? How I realized yeah I do.

Congrats, I have been following your story over the last year or so. I still have some uncertainties (future payouts based on employer stock valuations) but I should "be there" by summer of 2018. When I have living expenses from 62 to start of SS in a ST bond fund and 25x expenses after st...
by David Jay
Sat Mar 25, 2017 11:12 am
Forum: Investing - Theory, News & General
Topic: Hussman doesn't view me an a true investor
Replies: 20
Views: 1684

Re: Hussman doesn't view me an a true investor

413M in assets
One star rating (M*)
Negative Sharpe ratio

*snicker*
by David Jay
Sat Mar 25, 2017 9:48 am
Forum: Investing - Help with Personal Investments
Topic: Portfolio update: Is adding Target Retirement Income to AA of Wellesley + Balanced Index+Total Bond redundant?
Replies: 14
Views: 885

Re: Portfolio update: Is adding Target Retirement Income to AA of Wellesley + Balanced Index+Total Bond redundant?

My plan is to be 100% LS Moderate (with a couple of years expenses in ST Bond) by age 70 for my spouse's benefit. But I am closer to 25X expenses.
by David Jay
Sat Mar 25, 2017 9:45 am
Forum: Investing - Help with Personal Investments
Topic: Portfolio update: Is adding Target Retirement Income to AA of Wellesley + Balanced Index+Total Bond redundant?
Replies: 14
Views: 885

Re: Portfolio update: Is adding Target Retirement Income to AA of Wellesley + Balanced Index+Total Bond redundant?

You know (from past threads) that I really like the LS funds. But Wellesley has an excellent track record. It is probably a little bit difficult to get your mind around the fact that you have truly "won the game". This also makes thread responses difficult (and largely meaningless). You ca...
by David Jay
Sat Mar 25, 2017 9:21 am
Forum: Personal Finance (Not Investing)
Topic: Is there any downside to Home Equity line of credit even if we won't use it immediately?
Replies: 24
Views: 2440

Re: Is there any downside to Home Equity line of credit even if we won't use it immediately?

I have a small ($40,000) HELOC that I use in the same way as obgraham and carolinaman - quick access to cash for purchases. I am concerned about a $400,000 HELOC. I can't imagine a purpose for that level of short-term borrowing (His and Hers Ferrari?) and I would not use a HELOC for long term capita...
by David Jay
Sat Mar 25, 2017 9:07 am
Forum: Investing - Theory, News & General
Topic: Hussman doesn't view me an a true investor
Replies: 20
Views: 1684

Re: Hussman doesn't view me an a true investor

Who is Hussman? Why should I read him?
by David Jay
Sat Mar 25, 2017 9:02 am
Forum: Personal Finance (Not Investing)
Topic: Are Bogleheads in the minority on the use of investment advisors?
Replies: 86
Views: 4973

Re: Are Bogleheads in the minority on the use of investment advisors?

FWIW- best advice is to never decide to be 'ignorant' and rely totally on someone else for this type of advice and guidance. You need to know enough to at least understand the guidance you are getting and then check with at least a couple other sources for confirmation. It has been widely noted her...
by David Jay
Sat Mar 25, 2017 8:48 am
Forum: Investing - Help with Personal Investments
Topic: Help me avoid a wash sale
Replies: 12
Views: 460

Re: Help me avoid a wash sale

livesoft wrote:My impression is that you will exchange VTIAX for a loss in taxable into VTSAX and do the nearly opposite exchange in a Roth by exchanging VTSAX into VFWAX. That way your asset allocation remains the same.

+1
by David Jay
Sat Mar 25, 2017 8:44 am
Forum: Personal Finance (Not Investing)
Topic: Social Security - 2 year inflation adjustment gap
Replies: 5
Views: 586

Re: Social Security - 2 year inflation adjustment gap

I have much of this worked out on an SS projection spreadsheet (that I'm quite proud of) and there is an extra timing factor takes up to 12 months off of that two year "hole" if you file at age 62 as we plan to do. One of us is a case in point. Turned 60 at the very end of 2016 but the to...
by David Jay
Sat Mar 25, 2017 8:32 am
Forum: Investing - Help with Personal Investments
Topic: Help me avoid a wash sale
Replies: 12
Views: 460

Re: Help me avoid a wash sale

If you have no losses in the old account, you don't need to worry at all. Wash sales only apply to LOSSES in a TAXABLE account.
by David Jay
Sat Mar 25, 2017 8:28 am
Forum: Investing - Help with Personal Investments
Topic: Help me avoid a wash sale
Replies: 12
Views: 460

Re: Help me avoid a wash sale

If you have no losses in the old account, you don't need to worry at all. Wash sales only apply to LOSSES in a TAXABLE account.
by David Jay
Sat Mar 25, 2017 8:26 am
Forum: Investing - Help with Personal Investments
Topic: Help me avoid a wash sale
Replies: 12
Views: 460

Re: Help me avoid a wash sale

In the Roth, why not purchase, say VFSVX (International small cap) with your new contribution. Wait 32 days (to be sure). Exchange the VFSVX fund for VTIAX (at no cost). Done. I would stay with automatic re-investment in a Roth or IRA. I would only turn it off in a taxable account - to simplify tax...
by David Jay
Fri Mar 24, 2017 1:32 pm
Forum: Personal Finance (Not Investing)
Topic: Are Bogleheads in the minority on the use of investment advisors?
Replies: 86
Views: 4973

Re: Are Bogleheads in the minority on the use of investment advisors?

... After having been with an FA the last few years, my mother just asked for my advice on their portfolio a few weeks ago. This guy had convinced my mom to put most of her savings in a whole life policy and an annuity. .... Isn't buying a life insurance policy and an annuity like betting on both t...
by David Jay
Fri Mar 24, 2017 1:29 pm
Forum: Investing - Help with Personal Investments
Topic: Liquidate mutual funds from Ameriprise to Vanguard Index Funds?
Replies: 4
Views: 246

Re: Liquidate mutual funds from Ameriprise to Vanguard Index Funds?

MCLOX 1.82% ER
MSFRX 0.73% ER

Yea, I would find lower cost funds.
by David Jay
Fri Mar 24, 2017 10:20 am
Forum: Investing - Help with Personal Investments
Topic: Help me avoid a wash sale
Replies: 12
Views: 460

Re: Help me avoid a wash sale

In the Roth, why not purchase, say VFSVX (International small cap) with your new contribution. Wait 32 days (to be sure). Exchange the VFSVX fund for VTIAX (at no cost). Done. I would stay with automatic re-investment in a Roth or IRA. I would only turn it off in a taxable account - to simplify tax ...
by David Jay
Fri Mar 24, 2017 10:13 am
Forum: Personal Finance (Not Investing)
Topic: Are Bogleheads in the minority on the use of investment advisors?
Replies: 86
Views: 4973

Re: Are Bogleheads in the minority on the use of investment advisors?

FWIW- best advice is to never decide to be 'ignorant' and rely totally on someone else for this type of advice and guidance. You need to know enough to at least understand the guidance you are getting and then check with at least a couple other sources for confirmation. It has been widely noted her...
by David Jay
Fri Mar 24, 2017 10:00 am
Forum: Investing - Theory, News & General
Topic: New Investor mutual Fund Question
Replies: 5
Views: 249

Re: New Investor mutual Fund Question

Your 50% gain would be visible as an increase in NAV (net asset value) plus the dividends paid. If you are doing automatic dividend reinvestment, the increase will be a combination of NAV and increase in shares owned. Example: $1000 invested, NAV = $50, shares purchased: 20 After 6 months, 50% gain ...
by David Jay
Fri Mar 24, 2017 9:49 am
Forum: Personal Finance (Not Investing)
Topic: Are Bogleheads in the minority on the use of investment advisors?
Replies: 86
Views: 4973

Re: Are Bogleheads in the minority on the use of investment advisors?

If you use the search function, you will frequently find references here on BH to "fee only" advisors. Expertise is valuable and should be paid for. Once.

Not by taking a percentage of my portfolio each year in perpetuity.
by David Jay
Fri Mar 24, 2017 9:23 am
Forum: Investing - Help with Personal Investments
Topic: AXA Annuity getting fleeced- switch to Vanguard?
Replies: 20
Views: 1327

Re: AXA Annuity finally transferred to Vanguard

Finally seeing the funds in my Vanguard account. Woohoo! My current Roth is all in Vanguard Total Stock Market Index Fund Admiral Shares VTSAX. Was just going to lump sum the whole 39k into that, and not worry about timing. I am currently 80/20 and feel good about my AA. Thoughts? Yes, TSM is proba...
by David Jay
Fri Mar 24, 2017 8:57 am
Forum: Investing - Help with Personal Investments
Topic: Thinking about adding a 5% position to commodities
Replies: 21
Views: 1379

Re: Thinking about adding a 5% position to commodities

"The problem with commodities is that you are betting on what someone else would pay for them in six months. The commodity itself isn't going to do anything for you….it is an entirely different game to buy a lump of something and hope that somebody else pays you more for that lump two years fr...
by David Jay
Thu Mar 23, 2017 9:40 pm
Forum: Investing - Help with Personal Investments
Topic: Thinking about adding a 5% position to commodities
Replies: 21
Views: 1379

Re: Thinking about adding a 5% position to commodities

Commodities have no intrinsic growth, it is a zero-sum game. An ounce of silver today is still only an ounce of silver in 10 years.

Bonds pay real interest, stocks have earnings.
by David Jay
Thu Mar 23, 2017 9:19 pm
Forum: Investing - Help with Personal Investments
Topic: Inservice withdrawal to Vanguard question
Replies: 3
Views: 187

Re: Inservice withdrawal to Vanguard question

I have never heard of a rollover that allowed an "in-kind" distribution. I have only seen cash rollovers.

I am not declaring that it is illegal (I don't know the rules) but I have never heard of such.
by David Jay
Thu Mar 23, 2017 8:59 pm
Forum: Investing - Theory, News & General
Topic: AA after reaching your "freedom number"?
Replies: 39
Views: 3747

Re: AA after reaching your "freedom number"?

aristotelian wrote:Depends. How will you feel if your $3M drops to $1.5M? Is $3M really your number if it can only provide for you in an aggressive portfolio with no major bear market?


But if he is 50/50, he would,only see a 25% drop with a 50% stock market drop.
by David Jay
Thu Mar 23, 2017 8:36 pm
Forum: Investing - Help with Personal Investments
Topic: Initial investment advice
Replies: 15
Views: 665

Re: Initial investment advice

I definitely understand how term and investments might be superior for the duration of you and your spouse's lifetime. Where they said it was superior was in terms of legacy. I was planning on using the death benefit to give to my children essentially. Would that not be worth the continued payments...
by David Jay
Thu Mar 23, 2017 2:30 pm
Forum: Investing - Help with Personal Investments
Topic: Non-traded REIT - Analyzing how horrible, and trying to get out
Replies: 19
Views: 1244

Re: Non-traded REIT - Analyzing how horrible, and trying to get out

And yeah, I'd like to get that ---hole. He was their trusted advisor for 20+ years. I have records of much of their history, and when my grandfather was still alive he didn't pull any crap like this. He did put them in some good investments. But this, and selling a BUNCH of them right when she was ...
by David Jay
Thu Mar 23, 2017 1:09 pm
Forum: Investing - Help with Personal Investments
Topic: Vanguard Noob Question on Selling and Buying
Replies: 7
Views: 510

Re: Vanguard Noob Question on Selling and Buying

BTW I'm a little bit short to make it to Voyager Select I will ask if it makes sense to move some more 401K to get to that level before making my trades? Voyager stock trades are $7, Voyager Select are $2. There may be some benefit on sales of 3rd party mutual funds but I don't know that. If it is ...
by David Jay
Thu Mar 23, 2017 1:05 pm
Forum: Investing - Help with Personal Investments
Topic: Initial investment advice
Replies: 15
Views: 665

Re: Initial investment advice

Please understand, everyone here thinks you should take care of your dependents. Term life can do that economically. With proper investment (in your tax-deferred accounts first) you will no longer need life insurance at some point, so you drop the term coverage. That happened to us at Age 58 - my wi...
by David Jay
Thu Mar 23, 2017 11:54 am
Forum: Investing - Help with Personal Investments
Topic: Non-traded REIT - Analyzing how horrible, and trying to get out
Replies: 19
Views: 1244

Re: Non-traded REIT - Analyzing how horrible, and trying to get out

And yeah, I'd like to get that ---hole. He was their trusted advisor for 20+ years. I have records of much of their history, and when my grandfather was still alive he didn't pull any crap like this. He did put them in some good investments. But this, and selling a BUNCH of them right when she was ...
by David Jay
Thu Mar 23, 2017 11:42 am
Forum: Investing - Help with Personal Investments
Topic: Will new index funds ever come out?
Replies: 12
Views: 1315

Re: Will new index funds ever come out?

I only make 20k a year now. OP: You can use the Saver's Credit and get a large chunk of Federal taxes back! I did this for 2015 tax year, got under the $18,250 AGI threshold, and wiped out all federal income taxes. :) https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-savings...
by David Jay
Thu Mar 23, 2017 11:31 am
Forum: Investing - Help with Personal Investments
Topic: Vanguard Noob Question on Selling and Buying
Replies: 7
Views: 510

Re: Vanguard Noob Question on Selling and Buying

Is this a taxable account or is it an IRA?
by David Jay
Thu Mar 23, 2017 11:23 am
Forum: Investing - Help with Personal Investments
Topic: Initial investment advice
Replies: 15
Views: 665

Re: Initial investment advice

I did do a bit of research prior to just purchasing it and sort of decided that since I expect some sort of major market correction during my lifetime the guaranteed returns on some whole life might not be too bad. "Guaranteed" means you will lose money for 7-10 years. If you continue to ...
by David Jay
Thu Mar 23, 2017 8:35 am
Forum: Personal Finance (Not Investing)
Topic: Supplemental/Passive Income
Replies: 7
Views: 611

Re: Supplemental/Passive Income

It is great that you are focused on your financial situation. Lots of people don't get serious until they are in their 30s or 40s. I wish I understood what you do at age 24 (I didn't make my first 401K distribution until I was 29 or 30). Our best "one page" WIKI resource for investing is h...
by David Jay
Thu Mar 23, 2017 8:07 am
Forum: Investing - Help with Personal Investments
Topic: Initial investment advice
Replies: 15
Views: 665

Re: Initial investment advice

Sorry, didn't mean to overwhelm you. Welcome to the BH forum. After repeatedly seeing many of the same questions, it is easy to begin to provide "snap" answers. Please do not be intimidated and continue to post your questions. If you do nothing else, I recommend reading the article at WIKI...
by David Jay
Thu Mar 23, 2017 7:58 am
Forum: Investing - Help with Personal Investments
Topic: Reminder: Bogleheads Investing Startup Kit
Replies: 2
Views: 395

Reminder: Bogleheads Investing Startup Kit

For the last few weeks I have been trying to "specialize" in unanswered posts. I have been scrolling down looking for posts with zero replies and seeing if the questions are general enough for me to answer. At tax time we seem to see a bunch of new forum members - I think I have responded ...
by David Jay
Wed Mar 22, 2017 8:50 pm
Forum: Investing - Help with Personal Investments
Topic: Roth vs. TIRA, am I missing something obvious?
Replies: 23
Views: 1125

Re: Roth vs. TIRA, am I missing something obvious?

RMD percentage starts at 5.3% but by your late 70s the RMD is 9% of your portfolio balance each year. Based on IRA Required Minimum Distribution Worksheet it would seem the percentage is somewhat lower...? Age Factor Percentage 70 27.4 3.6% 71 26.5 3.8% 72 25.6 3.9% 73 24.7 4.0% 74 23.8 4.2% 75 22....
by David Jay
Wed Mar 22, 2017 8:11 pm
Forum: Investing - Help with Personal Investments
Topic: Roth vs. TIRA, am I missing something obvious?
Replies: 23
Views: 1125

Re: Roth vs. TIRA, am I missing something obvious?

The numbers work out exactly the same if you are putting in the same amount of pre-tax dollars and your tax rate is the same at both contribution and withdrawal. The two key decision points are: 1. Will your tax rate be higher at time of contribution or at time of withdrawal 2. Can you benefit from...

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