Search found 4796 matches

by David Jay
Sat May 26, 2018 12:41 pm
Forum: Personal Finance (Not Investing)
Topic: medicaid as early retirement medical insurance (or maybe Obamacare)
Replies: 25
Views: 1814

Re: medicaid as early retirement medical insurance (or maybe Obamacare)

In Michigan, the income level for Medicare qualification is ~$22,000 a year for Married family of 2. So if you can show an income under that level (say, by living out of Roth funds) then you qualify. Premium is something like $38 a month. Co-pays are minimal ($5 for office visit, $2for generic presc...
by David Jay
Thu May 24, 2018 11:56 am
Forum: Investing - Help with Personal Investments
Topic: About to retire and at an almost total loss.
Replies: 15
Views: 4758

Re: About to retire and at an almost total loss.

I would immediately stop reinvesting dividends in the (3) stocks and reinvest that money into Vanguard Total Stock Market. You can purchase it as an ETF in your brokerage account: VTI That step is low cost and will have low tax. Someone else mentioned that those 3 stocks are well off their recent hi...
by David Jay
Thu May 24, 2018 8:11 am
Forum: Personal Finance (Not Investing)
Topic: Am I crazy to pay off my 30-yr fixed 3.625 mortgage?
Replies: 73
Views: 6992

Re: Am I crazy to pay off my 30-yr fixed 3.625 mortgage?

At your age with your savings rate and portfolio, I don't think that either choice is a "mistake", it is a matter of optimization at the margins. A few thoughts: 1. The money is now invested in real estate. Paying off the mortgage maintains that allocation. 2. Since you are already maxing out your t...
by David Jay
Wed May 23, 2018 6:56 pm
Forum: Personal Finance (Not Investing)
Topic: anyway to get running transaction balance at Vanguard?
Replies: 2
Views: 385

Re: anyway to get running transaction balance at Vanguard?

Yes, the account summary and the individual fund balances are updated at different times of the evening. There was another thread about this a few weeks ago. By the time a few people replied, the summary and the fund balances matched. I am confident that they match by the time the markets open @ 9:3...
by David Jay
Wed May 23, 2018 6:44 pm
Forum: Investing - Help with Personal Investments
Topic: How to invest $1.4 million inheritance?
Replies: 28
Views: 3380

Re: How to invest $1.4 million inheritance?

TravelforFun wrote:
Wed May 23, 2018 6:36 pm
With stock market at all-time high...
By definition, the stock market spends the majority of its time at or around all-time highs.
by David Jay
Wed May 23, 2018 3:40 pm
Forum: Personal Finance (Not Investing)
Topic: combining two Roths so when is 5 year bar?
Replies: 19
Views: 1317

Re: combining two Roths so when is 5 year bar?

More about the 5 year clock for determining when distributions are qualified. The Regs indicate that the clock starts with your first contribution, but to drill down on that: 1) Any contribution that is an excess contribution does NOT start the clock 2) Any contribution that was fully returned with...
by David Jay
Wed May 23, 2018 11:34 am
Forum: Personal Finance (Not Investing)
Topic: combining two Roths so when is 5 year bar?
Replies: 19
Views: 1317

Re: combining two Roths so when is 5 year bar?

Epsilon Delta wrote:
Wed May 23, 2018 10:59 am
Also how do you know.
Because I have met both "boundary conditions".
by David Jay
Wed May 23, 2018 11:17 am
Forum: Personal Finance (Not Investing)
Topic: combining two Roths so when is 5 year bar?
Replies: 19
Views: 1317

Re: combining two Roths so when is 5 year bar?

As far as I am aware there is no distinction between earnings on conversions and any other type of earnings in the Roth. You are talking about different clocks for earnings on conversions versus other types of earnings. Those are not my words. I said "at least (3)" because every conversion starts i...
by David Jay
Wed May 23, 2018 10:56 am
Forum: Personal Finance (Not Investing)
Topic: combining two Roths so when is 5 year bar?
Replies: 19
Views: 1317

Re: combining two Roths so when is 5 year bar?

If it helps to understand, TIAA does not have a Roth IRA, you have a Roth IRA (after all, the "I" stands for individual). You are moving your Roth from one custodian to another custodian. Your Roth does not go away, it is the same Roth but you are choosing a different custodian to hold your Roth.
by David Jay
Wed May 23, 2018 10:49 am
Forum: Personal Finance (Not Investing)
Topic: combining two Roths so when is 5 year bar?
Replies: 19
Views: 1317

Re: combining two Roths so when is 5 year bar?

The date of your first-ever Roth covers the 5 year opening clock for all subsequent Roth accounts. Note that there are at least (3) 5 year clocks associated with Roth accounts. I am talking about the "since opening" clock only. There are separate clocks for tIRA conversions, earnings on conversions,...
by David Jay
Wed May 23, 2018 10:38 am
Forum: Investing - Help with Personal Investments
Topic: Best buy and hold vanguard fund forever...
Replies: 28
Views: 2934

Re: Best buy and hold vanguard fund forever...

Welcome to the forum!
Jon H wrote:
Wed May 23, 2018 9:00 am
You can still do a backdoor Roth IRA
^^^ This. Wiki information here: https://www.bogleheads.org/wiki/Backdoor_Roth_IRA

[edit] And you can each do one - $11,000 a year of additional tax-advantaged space
by David Jay
Wed May 23, 2018 10:13 am
Forum: Investing - Help with Personal Investments
Topic: Life Insurance-Where to invest savings?
Replies: 5
Views: 520

Re: Life Insurance-Where to invest savings?

Welcome to the forum. Let me say that you are doing great for 28 - I was in my mid-30s before I began to take retirement accounts seriously. It looks like you are doing things in a very Boglehead manner: 1. Contribute to get the match in employer accounts 2. Max-out your Roths 3. Max-out your HSA Yo...
by David Jay
Tue May 22, 2018 5:34 pm
Forum: Investing - Help with Personal Investments
Topic: Please review my IPS / Allocation
Replies: 8
Views: 496

Re: Please review my IPS / Allocation

You need to take a look at when to start Social Security benefits. Thanks, I will. I prefer to retire at 62, but I might not have achieved my goals by then, in which case I will of course wait till 65 or 68. I intend to retire at age 62 in 2019. I intend to start SS benefits some time between age 6...
by David Jay
Tue May 22, 2018 4:55 pm
Forum: Investing - Help with Personal Investments
Topic: Is Whole Life Insurance Worth It?
Replies: 54
Views: 3905

Re: Is Whole Life Insurance Worth It?

... more importantly, due to the cost, the amount of insurance purchased is simply inadequate to the need. This is a point I have made before: “ As a process engineer, I observe that the design of whole life is the inverse of the needs of most people: 1. When one is young, has few assets, has famil...
by David Jay
Tue May 22, 2018 4:42 pm
Forum: Investing - Help with Personal Investments
Topic: Should I rollover VTSAX into 401k to do backdoor Roth? [Vanguard Total Stock]
Replies: 7
Views: 424

Re: Should I rollover VTSAX into 401k to do backdoor Roth? [Vanguard Total Stock]

In the longrun, is this worth it? I’ll be paying more in fees and possibly not getting similar investment returns as VTSAX. What are the options in the 401k plan? List the fund names, ticker symbols, and plan expense ratios. ^ ^ ^ This. Without knowing the 401K options and Expense Ratios (ERs), we ...
by David Jay
Tue May 22, 2018 3:03 pm
Forum: Investing - Theory, News & General
Topic: Is HFXIX (Catalyst Hedged Futures Strategy Fund) a good idea for long-term, low-risk capital preservation?
Replies: 8
Views: 391

Re: Is HFXIX (Catalyst Hedged Futures Strategy Fund) a good idea for long-term, low-risk capital preservation?

Welcome to the forum. You may find our start-up kit to be useful: https://www.bogleheads.org/wiki/Bogleheads%C2%AE_investing_start-up_kit To answer your final question: AVOID! [edit] The longest period for which Morningstar shows returns for this fund is 3 years (because of the changes to the fund s...
by David Jay
Tue May 22, 2018 10:54 am
Forum: Personal Finance (Not Investing)
Topic: Chase Savings Account emptied out!
Replies: 77
Views: 11297

Re: Chase Savings Account emptied out!

This is a downside of being connected into the banking system. I asked if it was possible to say "No ACH transfers" from this account. "Not possible" was the reply. I minimize the funds I keep in bank/credit union. I like that Vanguard requires a verification for each bank account that does ACH tran...
by David Jay
Tue May 22, 2018 10:36 am
Forum: Investing - Help with Personal Investments
Topic: How do you stop moving the goal posts.
Replies: 62
Views: 4629

Re: How do you stop moving the goal posts.

Oh, and a single-hander sailboat :happy
by David Jay
Tue May 22, 2018 10:35 am
Forum: Investing - Help with Personal Investments
Topic: How do you stop moving the goal posts.
Replies: 62
Views: 4629

Re: How do you stop moving the goal posts.

I am right on the cusp of retirement (Class of 2019), so I can identify with your question. I have spent a lot of time working through my retirement finances. I put together a year-by-year spreadsheet with spending, income source and tax consequences. Still doing some "what-if" scenarios around star...
by David Jay
Tue May 22, 2018 9:48 am
Forum: Investing - Theory, News & General
Topic: Roth IRA contributions during semi-retirement?
Replies: 14
Views: 663

Re: Roth IRA contributions during semi-retirement?

If you need living expenses and have a taxable balance, I would contribute to your Roth and spend from the taxable account. [edit] For clarity: 1. If you have free cash flow - fund your Roth accounts 2. If you do not have free cash flow but have taxable funds - fund your Roth accounts and take livin...
by David Jay
Mon May 21, 2018 3:01 pm
Forum: Investing - Theory, News & General
Topic: What are downsides of ESPP @ 15% discount ?
Replies: 41
Views: 2703

Re: What are downsides of ESPP @ 15% discount ?

If you are in a high tax bracket (say, 32% or higher), it may be worth looking at extending the rotation period to 1 year in order to sell at long term capital gains (LTCG) rate. No, not really. The 15% discount (or whatever discount you get) at vesting is always taxed as ordinary income. Only the ...
by David Jay
Mon May 21, 2018 12:52 pm
Forum: Investing - Help with Personal Investments
Topic: Pimco INCOME BOND FUND PONAX beating VWIAX Wellesley ~~ too good to be true?
Replies: 26
Views: 1718

Re: Pimco INCOME BOND FUND PONAX beating VWIAX Wellesley ~~ too good to be true?

I think what I see here is that PONAX Bond fund is Beating a stock Bond Fund VWIAX ... through most periods in time ( recent years) .. I agree different assets class for each .... BUT I would have expected the Bond Fund to have lagged VWIAX ... ie here u have the Bond Income Fund winning when norma...
by David Jay
Mon May 21, 2018 12:08 pm
Forum: Investing - Help with Personal Investments
Topic: Please review my IPS / Allocation
Replies: 8
Views: 496

Re: Please review my IPS / Allocation

Karma Skimmer wrote:
Mon May 21, 2018 4:09 am
Social Security at 62 (2021) 23k/year
You need to take a look at when to start Social Security benefits.
by David Jay
Mon May 21, 2018 11:59 am
Forum: Investing - Theory, News & General
Topic: Roll your own index fund current viability
Replies: 22
Views: 1408

Re: Roll your own index fund current viability

Would it be less complex to hold the SP500 in an index fund and short the stocks you wish to exclude?
by David Jay
Mon May 21, 2018 11:32 am
Forum: Investing - Help with Personal Investments
Topic: Pimco INCOME BOND FUND PONAX beating VWIAX Wellesley ~~ too good to be true?
Replies: 26
Views: 1718

Re: Pimco BOND FUND PONAX beating VWIAX Wellesley ~~ too good to be true?

sonosoldi3112 wrote:
Mon May 21, 2018 11:20 am
OK it is a BOND FUND INCOME ,,,, so you have a Bond fund beating a Bond plus Stock fund ie Wellesley VWIAX.
Yea, you can beat a lot of things when you guess right with 500% leverage.

[edit] In fairness, they are only NET long 145%
by David Jay
Mon May 21, 2018 10:56 am
Forum: Investing - Help with Personal Investments
Topic: Pimco INCOME BOND FUND PONAX beating VWIAX Wellesley ~~ too good to be true?
Replies: 26
Views: 1718

Re: Pimco PONAX beating VWIAX Wellesley ~~ too good to be true?

Leverage much?

Cash: 145% short, 98% long
Bonds: 66% short, 210% long
by David Jay
Mon May 21, 2018 10:21 am
Forum: Investing - Theory, News & General
Topic: What are downsides of ESPP @ 15% discount ?
Replies: 41
Views: 2703

Re: What are downsides of ESPP @ 15% discount ?

Is the company long-term stable and growing? If not, maybe start looking elsewhere for employment. Your long-term security is infinitely more important than a couple of money-making trades a year. If the company is stable and growing, why not hold onto stock you are buying at a minimum of 15% off? ...
by David Jay
Mon May 21, 2018 9:14 am
Forum: Investing - Theory, News & General
Topic: What are downsides of ESPP @ 15% discount ?
Replies: 41
Views: 2703

Re: What are downsides of ESPP @ 15% discount ?

If you are in a high tax bracket (say, 32% or higher), it may be worth looking at extending the rotation period to 1 year in order to sell at long term capital gains (LTCG) rate.
by David Jay
Mon May 21, 2018 9:10 am
Forum: Investing - Theory, News & General
Topic: What are downsides of ESPP @ 15% discount ?
Replies: 41
Views: 2703

Re: What are downsides of ESPP @ 15% discount ?

There will be little risk if you sell lots on a rotating basis. Even if one period has a loss (i.e. stock down more than 15%), the other periods will be profitable if you stay with it. Just don't: 1. Accumulate the stock or 2. Quit the program after the first down period - that locks in a permanent ...
by David Jay
Sun May 20, 2018 9:41 pm
Forum: Investing - Help with Personal Investments
Topic: Yet another “I’m leaving Ameriprise” post
Replies: 4
Views: 741

Re: Yet another “I’m leaving Ameriprise” post

3. No need to send the Dear John letter. Just hop on the bus, Gus.
4. Ask the Vanguard advisor where to sell which funds. It may be cheaper to sell at Ameriprise - or not. I don’t know, so ask the Vanguard rep.
by David Jay
Sun May 20, 2018 6:24 pm
Forum: Investing - Help with Personal Investments
Topic: Newly widowed, how do I invest 1.5 million life ins. proceeds
Replies: 72
Views: 7713

Re: Newly widowed, how do I invest 1.5 million life ins. proceeds

4stars: 1. A 2.5% withdrawal rate is considered by many to be a “perpetual” portfolio. Properly invested, one can withdraw an 2.5%, inflation adjusted (i.e. constant spending power) without depleting your capital. 2. This implies just about $3K a month from the life insurance proceeds, for a total o...
by David Jay
Sun May 20, 2018 2:38 pm
Forum: Investing - Help with Personal Investments
Topic: VG Traditional IRA Brokerage Account?
Replies: 4
Views: 240

Re: VG Traditional IRA Brokerage Account?

Would there be any issue with doing this? No issue at all. There can be advantages to having a full-function brokerage account. For example, we are purchasing 100 shares of a cruise company’s stock in order to get significant benefits on an upcoming cruise. I can do that inside of my tIRA with a br...
by David Jay
Sat May 19, 2018 5:30 pm
Forum: Local Chapters and Bogleheads Community
Topic: Roll Call for the Retirement Class of 2018!
Replies: 190
Views: 24386

Re: Roll Call for the Retirement Class of 2018!

Miriam2 wrote:
Sat May 19, 2018 3:49 pm
Thank you David Jay for your Retirement Literacy Tutorial and these very helpful threads :D
I’m scheduled for the Class of 2019, so I have been “studying up” on a lot of this stuff.
by David Jay
Sat May 19, 2018 2:46 pm
Forum: Investing - Help with Personal Investments
Topic: How does the process work for getting back funds from a Roth?
Replies: 9
Views: 756

Re: How does the process work for getting back funds from a Roth?

The 5-year rule applies to withdrawing earnings in a Roth IRA, not the contributions. I am then wrong. Note that Roth conversions do have a 5 year waiting period. I think the two different 5 year rules contribute to the confusion. https://www.kitces.com/blog/understanding-the-two-5-year-rules-for-r...
by David Jay
Sat May 19, 2018 2:41 pm
Forum: Local Chapters and Bogleheads Community
Topic: Roll Call for the Retirement Class of 2018!
Replies: 190
Views: 24386

Re: Roll Call for the Retirement Class of 2018!

It's going to be very close for 2018. . . . So don't sign me up yet, I will let you know if this becomes a December 31 retirement. OK, keep us updated with your plans! We always enjoy seeing your cute yellow airplane :happy and of course, reading your sensible investment thoughts and advice 8-) Dav...
by David Jay
Fri May 18, 2018 11:39 am
Forum: Investing - Help with Personal Investments
Topic: How does the process work for getting back funds from a Roth?
Replies: 9
Views: 756

Re: How does the process work for getting back funds from a Roth?

Settlement time from a mutual fund sale is D+1, so it takes 1 day to settle the sale. An ETF or stock sale is D+2 After that, it likely takes 2 days for electronic transfer to your bank account. So it should take place within 3-4 business days - definitely can all be done in a week. I have a HELOC a...
by David Jay
Fri May 18, 2018 8:51 am
Forum: Personal Finance (Not Investing)
Topic: Anybody familiar with Met Life Guaranteed Advantage Universal Life
Replies: 2
Views: 382

Re: Anybody familiar with Met Life Guaranteed Advantage Universal Life

1) If I leave this plan alone, I would be guaranteed the face amount of 700k eventually? If the policy were to remain in effect (i.e. dividends and cash value are enough to pay the premiums - this is unlikely as the premiums will go up dramatically as you age), then yes, your heirs will receive $70...
by David Jay
Fri May 18, 2018 8:29 am
Forum: Investing - Help with Personal Investments
Topic: Retiring soon - some questions
Replies: 27
Views: 3134

Re: Retiring soon - some questions

If you have not done so, you need to look at the impact of required minimum distributions (RMDs) in your future. These required distributions from your tax-deferred accounts increase in percentage over time (based on remaining life expectancy). With 2.2M in tax-deferred (which could grow to, say, 5...
by David Jay
Fri May 18, 2018 8:14 am
Forum: Personal Consumer Issues
Topic: Shopping for life insurance and disability insruance
Replies: 1
Views: 215

Re: Shopping for life insurance and disability insruance

At your age, shorter term policies will be less expensive. I would recommend a "layering" approach, where your portfolio assets replace the life insurance. For example, purchase both a $1M, 10 year policy (covers getting the kids out of the house) and a $500K, 15 year policy. By then (age 55) you sh...
by David Jay
Fri May 18, 2018 8:06 am
Forum: Investing - Help with Personal Investments
Topic: Long term investment in grains/wheat
Replies: 22
Views: 1320

Re: Long term investment in grains/wheat

whodidntante wrote:
Fri May 18, 2018 7:24 am
You can get direct exposure by buying and rolling a futures contract. There isn't anything you can buy and hold for 15 years that provides direct exposure.
As poster says, there is no practical way today to invest in the 2028 or 2032 wheat harvest.
by David Jay
Fri May 18, 2018 7:42 am
Forum: Personal Finance (Not Investing)
Topic: Can I Roth convert 401k? (and other retirement acct questions)
Replies: 10
Views: 815

Re: Can I Roth convert 401k? (and other retirement acct questions)

I have also concluded that I probably won't be doing Roth conversions, unless I have a bad year where I'm unemployed or sick and have very low income, then that would be a good year to roth-convert some funds. But still, it seems like a tIRA is somewhat more flexible than a 401k. Many people here o...
by David Jay
Thu May 17, 2018 12:33 pm
Forum: Personal Finance (Not Investing)
Topic: Why can't you rollover a retirement account into another one that you no longer work at?
Replies: 33
Views: 1743

Re: Why can't you rollover a retirement account into another one that you no longer work at?

An active plan doesn't even have to allow rollovers in. It's common to allow them from old 401(k)s, but the law only permits it. A recent change to Megacorp's plan was to allow rollovers in even after you separate from service. There's really no reason to obsess about it. There's nothing you can do...
by David Jay
Thu May 17, 2018 11:09 am
Forum: Personal Consumer Issues
Topic: What would you do? takes 6 months to fix a Tesla Model S
Replies: 33
Views: 2548

Re: What would you do? takes 6 months to fix a Tesla Model S

Sheepdog wrote:
Thu May 17, 2018 8:34 am
I have been driving for 65 years with only one accident (hitting a deer). :confused
And here I thought you loved animals...
by David Jay
Thu May 17, 2018 11:02 am
Forum: Investing - Theory, News & General
Topic: Bank Interest Rates — when will they go up?
Replies: 25
Views: 2785

Re: Bank Interest Rates — when will they go up?

I know that Vanguard's money market rates have been creeping upwards for some time - VMMXX (Prime Money Market) SEC yield is 1.85% today.

CDs are up nicely (3.2% on a 5 year today on the Vanguard site).
by David Jay
Wed May 16, 2018 11:16 am
Forum: Investing - Help with Personal Investments
Topic: Model ETF portfolios
Replies: 9
Views: 669

Re: Model ETF portfolios

Alexa9 wrote:
Tue May 15, 2018 10:09 pm
Chasing the most popular funds of last year is one of the worst strategies to use.
Academic studies have confirmed this. It is a losing strategy to select last year's winners.
by David Jay
Wed May 16, 2018 10:24 am
Forum: Investing - Help with Personal Investments
Topic: Friend says "Stock market will crash, invest in silver" - thoughts?
Replies: 127
Views: 7577

Re: Friend says "Stock market will crash, invest in silver" - thoughts?

I think this forum is a bit obsessed with the idea that investment is stock index + bond index. Any contrary idea suggesting physical assets such as property and gold as diversification and hedge is looked down upon ... Actually, we are obsessed with having an Investment Policy and sticking to it ....
by David Jay
Tue May 15, 2018 5:46 pm
Forum: Investing - Theory, News & General
Topic: can someone explain me AMT in dummy terms?
Replies: 15
Views: 2450

Re: can someone explain me AMT in dummy terms?

The Wizard wrote:
Tue May 15, 2018 4:26 pm
Peppergrass wrote:
Tue May 08, 2018 12:52 am
I blew someone's mind, hahaha. well won't tell you what it should be in the future then

yeah, at IB, problem is I get no free treasury purchases...
What is IB?
Interactive Brokers
by David Jay
Tue May 15, 2018 5:43 pm
Forum: Investing - Help with Personal Investments
Topic: How to Invest $600K for Retirees
Replies: 26
Views: 4057

Re: How to Invest $600K for Retirees

Look at these two together -an SPIA with a portion of the funds to provide income security and then a more aggressive (perhaps 60/40) portfolio for legacy. If all their needs are met then ups-and-downs in the legacy portfolio should be less of a worry.
by David Jay
Tue May 15, 2018 5:28 pm
Forum: Personal Consumer Issues
Topic: Now that we know we're just digital prey, tell me about ad blockers and other apps and which ones are best
Replies: 17
Views: 1395

Re: Now that we know we're just digital prey, tell me about ad blockers and other apps and which ones are best

I like the Brave browser for Windows and iOS (using it now on my iPad). Blocks ads, pop-ups and such. When I first started using it, it was so weird that the whole right-hand side of most web pages was blank.
by David Jay
Tue May 15, 2018 12:48 pm
Forum: Investing - Help with Personal Investments
Topic: Advice for My Mom's Retirement Portfolio
Replies: 5
Views: 619

Re: Advice for My Mom's Retirement Portfolio

Welcome to the forum. Clearly your Mom is well provided for. She needs $5000 year for basic living expenses and has about a million without including bank stock or office building. She will need a bit more cash when the office building sells but she will have an additional $200,000 or so. She could ...