Search found 3158 matches

by David Jay
Mon May 22, 2017 2:26 pm
Forum: Investing - Help with Personal Investments
Topic: Missed window for selling Fairholme Fund (FAIRX)?
Replies: 2
Views: 60

Re: Missed window for selling Fairholme Fund (FAIRX)?

Without any knowledge of how it fits into the rest of your portfolio it is difficult to provide much input. A 10% NAV change is not significant enough for me to hold onto something that I want to dump, but I understand that it is tough to sell after the price has dropped. It depends on how badly you...
by David Jay
Mon May 22, 2017 2:18 pm
Forum: Investing - Help with Personal Investments
Topic: Help Deciding Whether to Move Blended 401k to Index
Replies: 3
Views: 81

Re: Help Deciding Whether to Move Blended 401k to Index

At this stage of life (a long time before retirement), Target Date 2050 and 2055 appear to have identical holdings.
by David Jay
Mon May 22, 2017 1:13 pm
Forum: Investing - Help with Personal Investments
Topic: Very Close to FI / RE - Allocation Suggestions?
Replies: 5
Views: 265

Re: Very Close to FI / RE - Allocation Suggestions?

I am also right on the edge, could probably leave today but I have a small "golden handcuff" (5 months salary) if I stay until age 62 (another 19 months), so that is my likely schedule. My thread "Two Year Checkup" thread is here: https://www.bogleheads.org/forum/viewtopic.php?f=...
by David Jay
Mon May 22, 2017 9:59 am
Forum: Investing - Theory, News & General
Topic: Index fund investor donates millions
Replies: 12
Views: 1570

Re: Index fund investor donates millions

kjvmartin wrote:An MD who received an inheritance from an MD parent donated millions :D

Wonder if he was diversified beyond the S&P or went all in.


That's kind of snippy. Whatever happened to "rejoice with those who rejoice"
by David Jay
Mon May 22, 2017 9:51 am
Forum: Investing - Help with Personal Investments
Topic: Using guaranteed yield in life insurance policy
Replies: 7
Views: 535

Re: Using guaranteed yield in life insurance policy

People on the forum are sometimes a little to quick to dismiss permanent life insurance. Because your policy was purchased so long ago you appear to have a very high legacy cash balance interest rate - which could be quite valuable. I suggest you ask your insurance agent for an in force illustratio...
by David Jay
Mon May 22, 2017 9:46 am
Forum: Investing - Help with Personal Investments
Topic: FAN [First Trust Global Wind Energy ETF]
Replies: 14
Views: 520

Re: FAN [First Trust Global Wind Energy ETF]

Note the exclusions: back up power costs are not included in wind... NICE. You need 100% backup for wind. That is not the case. Of course it is. If you need 100MW of generating capacity and you install 100MW of windfarm you also need 100MW of backup capacity. Everything else is just sophistry.
by David Jay
Sun May 21, 2017 1:05 pm
Forum: Investing - Help with Personal Investments
Topic: Using guaranteed yield in life insurance policy
Replies: 7
Views: 535

Re: Using guaranteed yield in life insurance policy

I really dislike it when parents who do this to their kids...
by David Jay
Sun May 21, 2017 12:50 pm
Forum: Investing - Help with Personal Investments
Topic: FAN [First Trust Global Wind Energy ETF]
Replies: 14
Views: 520

Re: FAN [First Trust Global Wind Energy ETF]

Valuethinker wrote:Note the exclusions: back up power costs are not included in wind...


NICE. You need 100% backup for wind.
by David Jay
Sun May 21, 2017 12:46 pm
Forum: Investing - Help with Personal Investments
Topic: Do you keep extra money available for investing
Replies: 19
Views: 934

Re: Do you keep extra money available for investing

I have about 40% of my portfolio available for investing in equities in the event the market goes down. I keep it in my brokerage account in a fund called "Total Bond Fund". In the event of a significant stock downturn I will exchange some of the Total Bond fund holdings for Total Stock Fu...
by David Jay
Sun May 21, 2017 8:39 am
Forum: Investing - Help with Personal Investments
Topic: FAN [First Trust Global Wind Energy ETF]
Replies: 14
Views: 520

Re: FAN [First Trust Global Wind Energy ETF]

I want to get exposure to wind farms and Is the ETF "FAN" a good investment? Seems like they are putting up allot of Windmills. Monster wind farm off shore on East Coast off Rhode Island , Also An approved wind farm off the eastern shores of Long Island will be the largest in the country....
by David Jay
Sat May 20, 2017 6:50 pm
Forum: Investing - Help with Personal Investments
Topic: Which Fund to Buy in a Taxable Account?
Replies: 8
Views: 846

Re: Which Fund to Buy in a Taxable Account?

Help me understand, are you seeking:
1. You want an equity (i.e. Stock) fund that is more stable than TSM
2. You want a bond fund that is more tax efficient than Total Bond
or:
You want a single fund made up of both equities and bonds?
by David Jay
Fri May 19, 2017 7:32 pm
Forum: Investing - Theory, News & General
Topic: Interesting conversation with an alleged SS actuary
Replies: 55
Views: 3412

Re: Interesting conversation with an alleged SS actuary

With survivor benefits, again it is not neutral
by David Jay
Fri May 19, 2017 7:31 pm
Forum: Investing - Theory, News & General
Topic: Interesting conversation with an alleged SS actuary
Replies: 55
Views: 3412

Re: Interesting conversation with an alleged SS actuary

True, but only in aggregate. Females have a much longer average lifespan, so delay favors females.
by David Jay
Fri May 19, 2017 6:24 pm
Forum: Personal Finance (Not Investing)
Topic: Anyone know what "book" an advisor or insurance salesperson would offer to buy for a prospective client?
Replies: 26
Views: 1328

Re: Anyone know what "book" an advisor or insurance salesperson would offer to buy for a prospective client?

I'll bet it isn't "If You Can". :happy

[edit] My favorite quote is: "Act as if every broker, insurance salesman, mutual fund salesman and financial advisor you encounter is a hardened criminal."
by David Jay
Fri May 19, 2017 6:21 pm
Forum: Investing - Help with Personal Investments
Topic: Why ETF settlement happens on T+3?
Replies: 21
Views: 1528

Re: Why ETF settlement happens on T+3?

math22 wrote: ...for instance suppose I buy some ETF of 5/10 and it is supposed to settle on 5/13 but I want to sell it on 5/11 (for a profit)...


I wonder why Bogle isn't a big fan of ETFs?
by David Jay
Fri May 19, 2017 3:03 pm
Forum: Investing - Help with Personal Investments
Topic: My dad is taking Social Security at 62, why would anyone not? (If they already quit working)
Replies: 77
Views: 7929

Re: My dad is taking Social Security at 62, why would anyone not?

David Jay wrote: SS COLA is based on CPI-W which overstates cost of living for retirees (over the long term) by, perhaps, 40 or 50 basis points. So SS beneficiaries actually come out ahead in periods of high inflation. This seems an unusual thing to state/believe. As medical costs are much more pre...
by David Jay
Fri May 19, 2017 1:19 pm
Forum: Investing - Help with Personal Investments
Topic: Edward Jones vs Vanguard self managed
Replies: 29
Views: 1819

Re: Edward Jones vs Vanguard self managed

smm-smm: If you do not want to do anything yourself, Vanguard has an advisor service that is 0.3% per year and they will only put you in low-cost funds. So at minimum, that will save you 1.1% per year. Over your lifetime this will save you about 1/3 of ALL your future gains. Also, Vanguard will let ...
by David Jay
Fri May 19, 2017 1:11 pm
Forum: Investing - Help with Personal Investments
Topic: My dad is taking Social Security at 62, why would anyone not? (If they already quit working)
Replies: 77
Views: 7929

Re: My dad is taking Social Security at 62, why would anyone not?

If I look at my projected benefits by SSA (only in 30s now) it lets me look at nominal or inflation adjusted benefits. Are you confident that it is an inflation adjustment you are looking at? As I recall you can see your SS benefit today (i.e. if you stopped working) and at age 6x (if you continued...
by David Jay
Fri May 19, 2017 12:31 pm
Forum: Investing - Theory, News & General
Topic: Anyone else track the value of their investments by discounting the value of equities?
Replies: 46
Views: 2419

Re: Anyone else track the value of their investments by discounting the value of equities?

I discount my future distributions of company stock (I work in an ESOP company and will receive a significant payout at age 65). I am discounting 40% as this is the largest 3-year drop in the 28 year history of the ESOP. Is this the correct discount rate? See the first quotation in my signature line...
by David Jay
Fri May 19, 2017 12:27 pm
Forum: Personal Finance (Not Investing)
Topic: Question about Social Security spousal benefits
Replies: 12
Views: 1025

Re: Question about Social Security spousal benefits

Thanks for the vote of confidence, David. :) I am married, plan to retire in about 18 months @ age 62, I have been running all the scenarios based on your book. Thank you . Congratulations. If you are like most of us (including those of us who loved our jobs), you will be very happy you retired. I ...
by David Jay
Fri May 19, 2017 12:20 pm
Forum: Investing - Help with Personal Investments
Topic: My dad is taking Social Security at 62, why would anyone not? (If they already quit working)
Replies: 77
Views: 7929

Re: My dad is taking Social Security at 62, why would anyone not?

Not sure why you would ignore [inflation] in setting up the scenarios, but then consider inflation in the context of evaluating the scenarios. ^^^ This! Your dad's COLA is based on his age 62. So if he takes SS at 62 or waits until age 70, his COLA will be the same, no loss of COLA for delay. Your ...
by David Jay
Fri May 19, 2017 10:45 am
Forum: Personal Finance (Not Investing)
Topic: One time chance to reselect Defined Benefits or Defined Contribution
Replies: 25
Views: 1696

Re: One time chance to reselect Defined Benefits or Defined Contribution

I think you have a good handle on the issues: DB: Is it sustainable? Already the DC people are helping to pay for the cost of retirees in the DB plan. With no COLA, how quickly will buying power erode (will inflation look like the late 1970s or the last 5 years?)? DC: No guarantees, but eventual (af...
by David Jay
Fri May 19, 2017 10:24 am
Forum: Personal Finance (Not Investing)
Topic: Question about Social Security spousal benefits
Replies: 12
Views: 1025

Re: Question about Social Security spousal benefits

ObliviousInvestor wrote:Thanks for the vote of confidence, David. :)


I am married, plan to retire in about 18 months @ age 62, I have been running all the scenarios based on your book. Thank you.
by David Jay
Thu May 18, 2017 9:19 pm
Forum: Personal Finance (Not Investing)
Topic: Question about Social Security spousal benefits
Replies: 12
Views: 1025

Re: Question about Social Security spousal benefits

Mike Piper (Oblivious Investor) wrote the book on Social Security - literally. I have his book on SS on my Kindle Reader.

I would be confident to make the trip to a SS Office for a face-to-face on the strength of Mike's say-so.
by David Jay
Thu May 18, 2017 7:30 pm
Forum: Investing - Help with Personal Investments
Topic: Managing My Elderly Moms Portfolio
Replies: 6
Views: 812

Re: Managing My Elderly Moms Portfolio

The biggest return from an SPIA at your Mom's age is mortality credits, not bond returns so the payout is much higher than market returns. I agree with this approach.
by David Jay
Thu May 18, 2017 6:32 pm
Forum: Investing - Theory, News & General
Topic: What is a HELCO??? [HELOC - Home Equity Line of Credit]
Replies: 7
Views: 900

Re: WHAT is a HELCO???

tuffy7222 wrote:I see it mention in threads


Because a lot of people can't type. It is a HELOC.
by David Jay
Thu May 18, 2017 3:18 pm
Forum: Investing - Help with Personal Investments
Topic: Why do I have international bonds in my 3-fund portfolio?!
Replies: 5
Views: 623

Re: Why do I have international bonds in my 3-fund portfolio?!

nisiprius wrote:Here is a mission for you, should you decide to accept it: how many Swiss corporations are included in the S&P 500 index? Hint


Looks like (3), but scrolling down that list was educational. I was surprised at the number headquartered in Dublin. I guess there really are many roads... :happy
by David Jay
Thu May 18, 2017 3:04 pm
Forum: Investing - Help with Personal Investments
Topic: Vanguard Total Bond Market Index Fund Admiral Shares
Replies: 3
Views: 552

Re: Vanguard Total Bond Market Index Fund Admiral Shares

You could get another 70 or 80 basis points (0.7% to 0.8%) with Vanguard Intermediate Term Corporate. It holds only investment grade bonds and if you don't plan to ever sell then slightly higher NAV variation shouldn't concern you.
by David Jay
Thu May 18, 2017 12:10 pm
Forum: Personal Consumer Issues
Topic: Tire Puncture - plug from outside or patch and plug from inside
Replies: 30
Views: 1393

Re: Tire Puncture - plug from outside or patch and plug from inside

For small punctures (like the OP), a plug from the outside is just fine and will last for the life of the tire.

Plug plus patch is like belt-and-suspenders.
by David Jay
Thu May 18, 2017 11:05 am
Forum: Investing - Theory, News & General
Topic: For those with $500k-$1m in investments...
Replies: 137
Views: 11156

Re: For those with $500k-$1m in investments...

David Jay wrote:0.9% taxable, 99.1% tax advantaged overall, just retirement portfolio ($682K) 0%/100%


I am over 59 1/2 so I have access to my Roth funds without penalty, emergency cash is a HELOC.
by David Jay
Thu May 18, 2017 10:58 am
Forum: Investing - Theory, News & General
Topic: For those with $500k-$1m in investments...
Replies: 137
Views: 11156

Re: For those with $500k-$1m in investments...

0.9% taxable, 99.1% tax advantaged overall, just retirement portfolio ($682K) 0%/100%
by David Jay
Thu May 18, 2017 10:51 am
Forum: Personal Finance (Not Investing)
Topic: MRD Withdrawal Question:
Replies: 6
Views: 591

Re: MRD Withdrawal Question:

Kitces has an article with a great graph showing what happens if you don't rebalance in retirement here:
https://www.kitces.com/blog/managing-se ... -approach/

Take a look at the last graph in the article - Wealth Over Time
by David Jay
Thu May 18, 2017 10:47 am
Forum: Personal Finance (Not Investing)
Topic: MRD Withdrawal Question:
Replies: 6
Views: 591

Re: MRD Withdrawal Question:

dbr wrote:In general taking required distributions presents an opportunity to rebalance your asset allocation to target.


^^^ This!
by David Jay
Thu May 18, 2017 10:29 am
Forum: Investing - Theory, News & General
Topic: Vanguard Retirment Savings trust II
Replies: 9
Views: 1177

Re: Vanguard Retirment Savings trust II

I am a little afraid of a bond fund if interest rates rise... Please explain your fear. Increasing rates will increase the income from a bond fund, and you have no intention of touching the principle anytime soon. I would stay with an intermediate term fund because it would take a long time (more t...
by David Jay
Wed May 17, 2017 1:52 pm
Forum: Investing - Help with Personal Investments
Topic: How to get funds in and then out of a Roth tax free after 5 years?
Replies: 15
Views: 1238

Re: How to get funds in and then out of a Roth tax free after 5 years?

You also need to be aware that some one-participant 401k plans do not allow any in-service rollovers prior to age 59 1/2. With these plans you would need to terminate the 401k, roll over the pre-tax assets to a traditional IRA and do your Roth IRA ladder from there. Another option might be to amend...
by David Jay
Wed May 17, 2017 1:35 pm
Forum: Personal Finance (Not Investing)
Topic: Delay SS, but claim if market plunges
Replies: 49
Views: 3910

Re: Delay SS, but claim if market plunges

Retired 9 years, I'm 66 and cruising on the "Delay to 70" highway (for both Social Security and small state pension). I'll consider taking an exit ramp before 70 if: * Inflation soars, and the 8% annual SS increase loses significance * Public policy changes, and the 8% annual increase goe...
by David Jay
Wed May 17, 2017 1:30 pm
Forum: Personal Finance (Not Investing)
Topic: Delay SS, but claim if market plunges
Replies: 49
Views: 3910

Re: Delay SS, but claim if market plunges

Interesting plan. I was thinking we might have my wife start SS before 70 (as early as 62) since hers is lower, and in the scenarios I ran it didn't make much difference in the end (with me starting at 70), but helped with early sequence of returns risk. I figured we'd just decide at the time, but ...
by David Jay
Wed May 17, 2017 12:48 pm
Forum: Investing - Help with Personal Investments
Topic: Asset Allocation Advice: Now that I've added two inherited accounts to my portfolio.
Replies: 10
Views: 447

Re: Asset Allocation Advice: Now that I've added two inherited accounts to my portfolio.

2. Should I invest in other Funds instead of the same four that my portfolio currently consists of? In other words, is it productive to duplicate these same funds in each of mine and my spouses accounts across the board, esp. when considering I will be taking RMD each year from the inherited tIRA? ...
by David Jay
Wed May 17, 2017 12:22 pm
Forum: Investing - Help with Personal Investments
Topic: When to take interest in a CD?
Replies: 18
Views: 1311

Re: When to take interest in a CD?

What is the purpose of the CD? Is it long term savings? If so, I would have the interest added back into the CD so it can compound.

If you are using the income for living expenses then you should take it out more often, monthly or quarterly.
by David Jay
Wed May 17, 2017 12:18 pm
Forum: Investing - Help with Personal Investments
Topic: New member retirement Check Up
Replies: 12
Views: 786

Re: New member retirement Check Up

You didn't tell us your income, but if your income is below the threshold you would be better off putting $5500 each for you and your spouse into a traditional IRA where you can pick the funds. You said your work doesn't even match the 401k. Near as I can tell they are contributing max to 401K and ...
by David Jay
Wed May 17, 2017 12:15 pm
Forum: Investing - Help with Personal Investments
Topic: New member retirement Check Up
Replies: 12
Views: 786

Re: New member retirement Check Up

Rereading, I found a sorta' question about the 457 fees. The tax advantages of a deferred account are a benefit up to about a 2% fee structure. Obviously the lower the better, but if there is an SP500 fund @ 1.00 it is still worth the tax-deferred space. Remember, it is not just the initial tax dedu...
by David Jay
Wed May 17, 2017 11:59 am
Forum: Investing - Help with Personal Investments
Topic: New member retirement Check Up
Replies: 12
Views: 786

Re: New member retirement Check Up

Welcome to the forum. I would say 4 things: 1. We don't know your income or marginal tax bracket (which would sorta' give us an idea of your income) it is difficult to understand how much savings is "enough". See #3 below. 2. You didn't give us any specific questions, so you are not gettin...
by David Jay
Wed May 17, 2017 11:14 am
Forum: Investing - Theory, News & General
Topic: Vanguard Retirment Savings trust II
Replies: 9
Views: 1177

Re: Vanguard Retirment Savings trust II

I was talking real dollars. With our pensions and income from this and wife fixed fund we would not need to touch principle for a very long time if ever. If you do not plan to touch this for a long time, then I would think you would want an investment that outperformed inflation over the long term ...
by David Jay
Wed May 17, 2017 7:15 am
Forum: Personal Finance (Not Investing)
Topic: Delay SS, but claim if market plunges
Replies: 49
Views: 3910

Re: Delay SS, but claim if market plunges

The Wizard wrote:...no special bond account for me, since I'm not a Bucketeer...


No buckets for me either, but: (Bond Allocation) > (Living Expenses to SS).
by David Jay
Tue May 16, 2017 10:37 pm
Forum: Investing - Help with Personal Investments
Topic: Should I do more Roth conversions?
Replies: 6
Views: 977

Re: Should I do more Roth conversions?

As it turned out, we overdid our converting because the law on QCDs finally became permanent. We do most charitable donations from IRA so won't be paying taxes as we use it up. Please explain. I have not thought through the problems of overdoing Roth conversions. Thanks I don't mean to speak for BL...
by David Jay
Tue May 16, 2017 10:10 pm
Forum: Personal Finance (Not Investing)
Topic: Delay SS, but claim if market plunges
Replies: 49
Views: 3910

Re: Delay SS, but claim if market plunges

I will have the entire amount needed for living expenses from retirement (at age 62) to start of SS benefits in bond funds. I will be holding 2 years in short term bonds to cushion any price drop in my Intermediate fund. That being said, I have a minimum portfolio amount at which I will take SS (ear...
by David Jay
Tue May 16, 2017 5:44 pm
Forum: Investing - Help with Personal Investments
Topic: How to get funds in and then out of a Roth tax free after 5 years?
Replies: 15
Views: 1238

Re: How to get funds in and then out of a Roth tax free after 5 years?

Any conversion/rollover of pre-tax dollars going into a Roth will be taxed as ordinary income in the year of the conversion. The only "out" is to earn so little that your marginal rate is zero.
by David Jay
Tue May 16, 2017 5:38 pm
Forum: Investing - Theory, News & General
Topic: Vanguard Retirment Savings trust II
Replies: 9
Views: 1177

Re: Vanguard Retirment Savings trust II

raaizin wrote:Forgive my ignorance but am I correct that this fund is safe with not real risk of losing principle.


In nominal dollars or in real dollars (I.e. after inflation)?
by David Jay
Tue May 16, 2017 5:32 pm
Forum: Investing - Theory, News & General
Topic: Vanguard Retirment Savings trust II
Replies: 9
Views: 1177

Re: Vanguard Retirment Savings trust II

I looked it up, this is a stable value fund. Since you have no need to withdraw any of these funds for at least 4 years, 50% of your portfolio in such a low yield investment seems excessively cautious.

Something like an intermediate term bond fund seems much more appropriate at your stage of life.
by David Jay
Tue May 16, 2017 3:57 pm
Forum: Investing - Help with Personal Investments
Topic: Article: "Our emergency fund is exactly $0.00"
Replies: 73
Views: 7170

Re: Article: "Our emergency fund is exactly $0.00"

I dropped my emergency fund when I reached 59 1/2 (access to Roth) and FI.

I also have a HELOC for things like vehicle turnover (just switched cars last month, used the HELOC for the value of the old car, paid it off when the old vehicle sold).

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