Search found 1363 matches

by FinancialDave
Wed May 25, 2016 11:45 pm
Forum: Investing - Theory, News & General
Topic: Only 1/4 of stock held in taxable accounts
Replies: 13
Views: 1644

Re: Only 1/4 of stock held in taxable accounts

This certainly doesn't address the question raised, but it does bring up a topic that I think is very relevant here. Is the Boglehead population likewise 1/4 taxable and 3/4 tax advantaged? This is relevant for investors giving and taking advice on this board. Taxes could be a much larger cost for ...
by FinancialDave
Tue May 24, 2016 8:58 pm
Forum: Investing - Theory, News & General
Topic: "Tips to help you become a tax-efficient investor"
Replies: 3
Views: 658

Re: "Tips to help you become a tax-efficient investor"

Jacklin actually gives some bad tax advice when she implies that long term capital gains (LTCG) don't raise your tax bracket -- implying at least IMO that if you have no income or low income you can have unlimited LTCG and you won't be taxed because you will be in the lowest tax bracket where LTCG a...
by FinancialDave
Thu May 12, 2016 5:57 pm
Forum: Investing - Theory, News & General
Topic: Unexpected suspension of SS benefits
Replies: 8
Views: 1390

Re: Unexpected suspension of SS benefits

I just got a letter from SSA saying "We have received your request to stop your benefits to earn special credits that will increase the benefits you will receive at age 70..." I know this "loophole" was going to be closed a few weeks ago and had thought about requesting the susp...
by FinancialDave
Sat May 07, 2016 5:30 pm
Forum: Investing - Theory, News & General
Topic: 4% rule and interest rates
Replies: 28
Views: 3607

Re: 4% rule and interest rates

My question is this … what happens if interest rates rise, in an orderly fashion to 6-7%? Does the 4% rule go up? Or does it remain? The 4% is a guideline. A planning number if you will.... What is going to happen no one knows. But if you use VPW, you can take advantage of a rising market or protec...
by FinancialDave
Sat May 07, 2016 4:20 pm
Forum: Investing - Theory, News & General
Topic: 4% rule and interest rates
Replies: 28
Views: 3607

Re: 4% rule and interest rates

Higher rates will eventually lead to higher total returns and I very much look forward to that.


I don't follow the cause and effect of this. If rates go up that will not improve corporate earnings, it will in effect do just the opposite to their debt obligation.

Dave
by FinancialDave
Sat May 07, 2016 10:16 am
Forum: Investing - Theory, News & General
Topic: 4% rule and interest rates
Replies: 28
Views: 3607

Re: 4% rule and interest rates

The importance of the 4% rule is that it has been shown to survive under various 30 year time frames over the last 115 years. Of course it won't survive under all under all asset allocations and of course we can't predict the future, but if you are suggesting that the future will be wildly different...
by FinancialDave
Sat Apr 30, 2016 9:20 am
Forum: Investing - Theory, News & General
Topic: dividend stocks
Replies: 175
Views: 9628

Re: dividend stocks

Then you are not like many people who use dividend income for expenses. The suggestion to "synthesize" dividends by selling shares can lead to disaster, as I've proven over and over. This seems to be a quote used quite often that doesn't pass the common sense test. What leads to a disaste...
by FinancialDave
Thu Apr 28, 2016 4:54 pm
Forum: Investing - Theory, News & General
Topic: dividend stocks
Replies: 175
Views: 9628

Re: dividend stocks

Ogd, Financialdave & Larryswedroe, I just wanted to let you know that I bought into the "Total Stock Market" fund today. My plan is to dca into the fund & let it roll for years. Long term buy & hold. Thank you for all your help & guidance...I appreciate it :) Yahooooo! Dave
by FinancialDave
Wed Apr 27, 2016 9:48 am
Forum: Investing - Theory, News & General
Topic: dividend stocks
Replies: 175
Views: 9628

Re: dividend stocks

I'm open to suggestions! What would you do (at age 22) if you had to do it again knowing what you do now...The question for the ages! That is a quite easy question for me - I would embrace John Bogle and his many books, invest in a total stock market index and enjoy life without sweating the small ...
by FinancialDave
Wed Apr 27, 2016 9:42 am
Forum: Investing - Theory, News & General
Topic: dividend stocks
Replies: 175
Views: 9628

Re: dividend stocks

larryswedroe wrote:forty
For those investors you cite the simple answer is that they should own individual stocks in the first place, that has more to do with speculation than investing as you are taking uncompensated idiosyncratic risks.
Larry


I think maybe you meant "should NOT own ..." ?

fd
by FinancialDave
Sun Apr 24, 2016 5:32 pm
Forum: Investing - Theory, News & General
Topic: Anyone Have a Near Retirement Strategy for Sequence of Return Risk?
Replies: 88
Views: 7930

Re: Anyone Have a Near Retirement Strategy for Sequence of Return Risk?

One way to mitigate some of this is by using one of the variable withdrawal strategies discussed in a number of threads. I am using one myself just initiated at age 64 where I drop into an RMD withdrawal strategy at age 73 in the table (when I am still 64) - starts me at 4.05% withdrawal rate. I am...
by FinancialDave
Sun Apr 24, 2016 4:53 pm
Forum: Investing - Theory, News & General
Topic: dividend stocks
Replies: 175
Views: 9628

Re: dividend stocks

LarrySwedroe, Thank you for posting your articles! I thought they were very interesting & informative. Just to give everyone the other side of the story, here is a video by Kevin O'Leary of shark tank fame & O'Leary Funds. Please watch his video & comment on what he thinks. Thank you......
by FinancialDave
Sun Apr 24, 2016 4:07 pm
Forum: Investing - Theory, News & General
Topic: dividend stocks
Replies: 175
Views: 9628

Re: dividend stocks

for those interested in learning about dividend strategies, there are so many myths out there that I've written many pieces to try and correct them Hope you find them helpful Larry http://www.cbsnews.com/8301-505123_162-57583663/why-invest-in-stocks-with-a-high-dividend-yield/ http://www.cbsnews.co...
by FinancialDave
Sun Apr 24, 2016 3:54 pm
Forum: Investing - Theory, News & General
Topic: Did TIPS Really work?
Replies: 41
Views: 3659

Re: Did TIPS Really work?

I like to think of TIPS as the Treasury's attempt to get into the sector fund business, to appease those afraid of inflation, and thus I rarely find need to invest in this particular way, just to satisfy my fear of inflation. In fact equities do a much better job of combating inflation than the Trea...
by FinancialDave
Sat Apr 23, 2016 4:13 pm
Forum: Investing - Theory, News & General
Topic: Did TIPS Really work?
Replies: 41
Views: 3659

Re: Did TIPS Really work?

Also remember TIPs have never been tested in a significant rising rate situation. Paul Yep, just look at the cumulative losses in VIPSX starting in 2013. Almost 9% in 2013 and haven't recovered much of that loss at all. The 2016 Independent Guide to the Vanguard Funds has that cumulative loss graph...
by FinancialDave
Sat Apr 23, 2016 3:59 pm
Forum: Investing - Theory, News & General
Topic: If you withdraw Roth IRA contributions, can you put them back in?
Replies: 6
Views: 1136

Re: If you withdraw Roth IRA contributions, can you put them back in?

If you withdraw your specific contribution limited to the amount of that contribution with allocated earnings, that contribution is treated as if you never made it. Therefore you still have contribution space for that year as long as the tax due date has not passed. The 1099R for the removal of con...
by FinancialDave
Fri Apr 22, 2016 4:11 pm
Forum: Investing - Theory, News & General
Topic: Explaining a Total Return Withdrawal Strategy to Clients
Replies: 24
Views: 2646

Re: Explaining a Total Return Withdrawal Strategy to Clients

Ignoring Taxes, and market movements for now. Seems like this discussion is missing out about transaction fees. If dividend from fund distribution is left uninvested, then its cash and could be withdraw without transaction costs (assuming no administration fees involve). In addition, the dividend w...
by FinancialDave
Fri Apr 22, 2016 3:45 pm
Forum: Investing - Theory, News & General
Topic: Explaining a Total Return Withdrawal Strategy to Clients
Replies: 24
Views: 2646

Re: Explaining a Total Return Withdrawal Strategy to Clients

Try this, if the company never paid the dividend you have the same dollar invested in the stock as if they paid it and you reinvested it, and if taxable account you are clearly worse off. Larry, once again works good on paper - hard to prove with actual dividend stocks where the dividend has to be ...
by FinancialDave
Fri Apr 22, 2016 2:55 pm
Forum: Investing - Theory, News & General
Topic: Explaining a Total Return Withdrawal Strategy to Clients
Replies: 24
Views: 2646

Re: Explaining a Total Return Withdrawal Strategy to Clients

Larry,
both my accounts are in my IRA so taxes ARE equalized, at least for me.

Dave
by FinancialDave
Fri Apr 22, 2016 10:26 am
Forum: Investing - Theory, News & General
Topic: Explaining a Total Return Withdrawal Strategy to Clients
Replies: 24
Views: 2646

Re: Explaining a Total Return Withdrawal Strategy to Clients

snarly First, all else equal, meaning exposure to common factors such as size and value, there is no premium from dividend strategies. And that is exactly what economic theory suggests should be the case. Dividend strategies historically are value (high dividend)/profitability/quality (rising divid...
by FinancialDave
Fri Apr 22, 2016 10:00 am
Forum: Investing - Theory, News & General
Topic: Anyone Have a Near Retirement Strategy for Sequence of Return Risk?
Replies: 88
Views: 7930

Re: Anyone Have a Near Retirement Strategy for Sequence of Return Risk?

One way to mitigate some of this is by using one of the variable withdrawal strategies discussed in a number of threads. I am using one myself just initiated at age 64 where I drop into an RMD withdrawal strategy at age 73 in the table (when I am still 64) - starts me at 4.05% withdrawal rate. I am...
by FinancialDave
Thu Apr 21, 2016 12:23 pm
Forum: Investing - Theory, News & General
Topic: Anyone Have a Near Retirement Strategy for Sequence of Return Risk?
Replies: 88
Views: 7930

Re: Anyone Have a Near Retirement Strategy for Sequence of Return Risk?

One way to mitigate some of this is by using one of the variable withdrawal strategies discussed in a number of threads. I am using one myself just initiated at age 64 where I drop into an RMD withdrawal strategy at age 73 in the table (when I am still 64) - starts me at 4.05% withdrawal rate. I am ...
by FinancialDave
Fri Apr 01, 2016 2:07 pm
Forum: Investing - Theory, News & General
Topic: What if your money in Vanguard disappeared one day??
Replies: 44
Views: 6122

Re: What if your money in Vanguard disappeared one day??

livesoft wrote:I'd post on Bogleheads that I was happy that I had investments at other firms and would wait until Bogleheads had sorted things out before I looked at my Vanguard account.


Exactly!
by FinancialDave
Tue Mar 29, 2016 7:24 pm
Forum: Investing - Theory, News & General
Topic: Michael Kitces says IRS auditors disapprove of Backdoor Roth IRA's
Replies: 154
Views: 19924

Re: Michael Kitces says IRS auditors disapprove of Backdoor Roth IRA's

When the income limit on Roth conversions were lifted starting in 2010, the congressional record shows it was intended as a short term revenue enhancer to be scored to fund other changes in the bill. So congress plays games themselves. My other main point that has gone unnoticed in this thread, is ...
by FinancialDave
Tue Mar 29, 2016 12:46 am
Forum: Investing - Theory, News & General
Topic: Michael Kitces says IRS auditors disapprove of Backdoor Roth IRA's
Replies: 154
Views: 19924

Re: Michael Kitces says IRS auditors disapprove of Backdoor Roth IRA's

[quote="FinancialDave] I have never done a backdoor Roth and never hope to do one! One of the main reasons is that even though "everyone" says it is legal, there is no particular IRS verbiage that makes it so. Therefore, I don't even believe it would take an act of Congress to change...
by FinancialDave
Tue Mar 29, 2016 12:27 am
Forum: Investing - Theory, News & General
Topic: Michael Kitces says IRS auditors disapprove of Backdoor Roth IRA's
Replies: 154
Views: 19924

Re: Michael Kitces says IRS auditors disapprove of Backdoor Roth IRA's

And I stand by my "huge upside" comment for why the government might want to limit/end backdoor Roths by IRS regulations or enforcement of the "step transaction" rules (or by new legislation). Now that most of those inclined and able to do that have already had a 6 year window, ...
by FinancialDave
Mon Mar 28, 2016 7:02 pm
Forum: Investing - Theory, News & General
Topic: Michael Kitces says IRS auditors disapprove of Backdoor Roth IRA's
Replies: 154
Views: 19924

Re: Michael Kitces says IRS auditors disapprove of Backdoor Roth IRA's

The last post is not quite right. If high income folks who currently do back door Roth IRAs found them to become prohibited, the most likely alternative would be to do non-deductible traditional IRAs. They would NOT be allowed, under current law, to make traditional IRA contributions and take a cur...
by FinancialDave
Mon Mar 28, 2016 5:01 pm
Forum: Investing - Theory, News & General
Topic: Michael Kitces says IRS auditors disapprove of Backdoor Roth IRA's
Replies: 154
Views: 19924

Re: Michael Kitces says IRS auditors disapprove of Backdoor Roth IRA's

That was a very vague "A couple of people had problems". It didn't say what else they were audited for. I'm not scared of an audit. I do worry that the loophole will get closed. However, as the article notes, there really hasn't been any sort of successful tax policy changes in quite some...
by FinancialDave
Mon Mar 28, 2016 12:49 pm
Forum: Investing - Theory, News & General
Topic: What to do with Roth IRA (Unique Circumstance)
Replies: 17
Views: 1411

Re: What to do with Roth IRA (Unique Circumstance)

dharrythomas wrote:The TSP does have a Roth option.


dh,
I don't believe all TSPs are created equal in this regard. As recent as last year there were many that had a Roth and others that did not.
by FinancialDave
Mon Mar 28, 2016 12:46 pm
Forum: Investing - Theory, News & General
Topic: What to do with Roth IRA (Unique Circumstance)
Replies: 17
Views: 1411

Re: What to do with Roth IRA (Unique Circumstance)

I would also suggest you do some more detailed math on whether putting all your money in the tax-deferred TSP just to have a few dollars of your student loan forgiven is the best use of your funds. In general you will save more over your lifetime if you can put the maximum in your Roth when your sa...
by FinancialDave
Mon Mar 28, 2016 12:33 pm
Forum: Investing - Theory, News & General
Topic: Free Social Security Book From Jim Lange
Replies: 13
Views: 2936

Re: Free Social Security Book From Jim Lange

By the way you don't have to sign up for any newsletter. I just followed the link above and entered my email and a download link was sent to me for the SS book. Dave You signed up for the newsletters when you clicked on the link to receive the book in the email you got confirming your email address...
by FinancialDave
Sun Mar 27, 2016 2:41 pm
Forum: Investing - Theory, News & General
Topic: What to do with Roth IRA (Unique Circumstance)
Replies: 17
Views: 1411

Re: What to do with Roth IRA (Unique Circumstance)

I would also suggest you do some more detailed math on whether putting all your money in the tax-deferred TSP just to have a few dollars of your student loan forgiven is the best use of your funds. In general you will save more over your lifetime if you can put the maximum in your Roth when your sal...
by FinancialDave
Sun Mar 27, 2016 2:28 pm
Forum: Investing - Theory, News & General
Topic: What to do with Roth IRA (Unique Circumstance)
Replies: 17
Views: 1411

Re: What to do with Roth IRA (Unique Circumstance)

Just leave it alone (other than perhaps trading SICNX for something with a lower fee). This! No way you want to cash it out and close it because that would reset the 5 year rule when you open the next one. Not that it matters much at this young age, but the biggest reason is the compounding of $5,8...
by FinancialDave
Thu Mar 24, 2016 11:00 am
Forum: Investing - Theory, News & General
Topic: How have your homes as investments done?
Replies: 154
Views: 11213

Re: How have your homes as investments done?

Again, you have to consider the avoided rent in calculating the return. Even if you posit that 'the market would have paid the rent', financial asset investments I guess you mean, you still have to count that effect. I'm amazed by the long string of posts of people saying 'the price return of the h...
by FinancialDave
Wed Mar 23, 2016 10:27 am
Forum: Investing - Theory, News & General
Topic: How have your homes as investments done?
Replies: 154
Views: 11213

Re: How have your homes as investments done?

Again, you have to consider the avoided rent in calculating the return. Even if you posit that 'the market would have paid the rent', financial asset investments I guess you mean, you still have to count that effect. I'm amazed by the long string of posts of people saying 'the price return of the h...
by FinancialDave
Tue Mar 22, 2016 9:11 pm
Forum: Investing - Theory, News & General
Topic: How have your homes as investments done?
Replies: 154
Views: 11213

Re: How have your homes as investments done?

I was never one to use spreadsheets to see how my investments are doing. I can give you the basic stats. In July 1993, I bought my brand new Townhome from a builder for $134,900. Today I can easily sell it for $400,000. The first 8 years I had a tax abatement, so I paid nothing to very little in pr...
by FinancialDave
Tue Mar 22, 2016 11:56 am
Forum: Investing - Theory, News & General
Topic: How have your homes as investments done?
Replies: 154
Views: 11213

Re: How have your homes as investments done?

Bought my home in 1981 for $127,000 when the 30 yr fixed rate was 18.6%. Following several refinances we are thinking of downsizing. It is now worth close to $700k (no mortgage). I know there are constant disagreements here about 'home as investment' but after providing shelter, happy memories, tax...
by FinancialDave
Tue Mar 22, 2016 12:28 am
Forum: Investing - Theory, News & General
Topic: Free Social Security Book From Jim Lange
Replies: 13
Views: 2936

Re: Free Social Security Book From Jim Lange

White Coat Investor wrote:
mrc wrote:All I see now is an Amazon link for a $4.97 pre-order. :x


Did you go to this site: http://www.paytaxeslater.com/ss.php



By the way you don't have to sign up for any newsletter. I just followed the link above and entered my email and a download link was sent to me for the SS book.

Dave
by FinancialDave
Mon Mar 21, 2016 11:49 pm
Forum: Investing - Theory, News & General
Topic: How have your homes as investments done?
Replies: 154
Views: 11213

Re: How have your homes as investments done?

Bought my home in 1981 for $127,000 when the 30 yr fixed rate was 18.6%. Following several refinances we are thinking of downsizing. It is now worth close to $700k (no mortgage). I know there are constant disagreements here about 'home as investment' but after providing shelter, happy memories, tax...
by FinancialDave
Mon Mar 21, 2016 11:24 pm
Forum: Investing - Theory, News & General
Topic: Proposed: 35% Maximum Bond Allocation, For Life
Replies: 40
Views: 5176

Re: Proposed: 35% Maximum Bond Allocation, For Life

A 15 year downturn isn't really unprecedented even in U.S. history. You need to take a good hard look at what really happened 1929-1944. A brief year of fabulous recovery justifies regarding it as two back-to-back bear markets instead of one,but the window of opportunity for selling and getting bac...
by FinancialDave
Mon Jan 25, 2016 1:58 pm
Forum: Investing - Theory, News & General
Topic: A graphic on the role of bonds
Replies: 54
Views: 7174

Re: A graphic on the role of bonds

restarting a thread on interest rates that is approaching 3 years old is probably not too productive either, no?
by FinancialDave
Tue Jan 05, 2016 11:34 pm
Forum: Investing - Theory, News & General
Topic: 2016 hedge fund contest
Replies: 142
Views: 8151

Re: 2016 hedge fund contest

I'll take it - most improved from last year in one trading day --- that has got to be a bad sign for my contrarian nature! No where to go but down from here!

:sharebeer
by FinancialDave
Tue Jan 05, 2016 12:01 pm
Forum: Investing - Theory, News & General
Topic: people just love predictions
Replies: 16
Views: 1314

Re: people just love predictions

cfs wrote:I heard a so-called market expert doing this . . .

"Forecasting is the art of saying what will happen, and then explaining why it didn't! "


I think you missed the "un-said."

If you make enough predictions a few of them are bound to come true.

fd
by FinancialDave
Tue Jan 05, 2016 11:59 am
Forum: Investing - Theory, News & General
Topic: people just love predictions
Replies: 16
Views: 1314

Re: people just love predictions

I love predictions, especially after 2014!

They are addicting just like individual stock investing when you have a winner or two!

I'm signed up again in 2016 for two more predictions!

:D
by FinancialDave
Mon Jan 04, 2016 1:42 am
Forum: Investing - Theory, News & General
Topic: 2016 hedge fund contest
Replies: 142
Views: 8151

Re: 2016 hedge fund contest

Two Gas Wonder: :D because the one gas wonder last year was a bust!

Long: LNG
Long: ULTR
by FinancialDave
Sun Jan 03, 2016 1:40 am
Forum: Investing - Theory, News & General
Topic: What are you up YTD? [Year To Date]
Replies: 826
Views: 131190

Re: What are you up YTD? [Year To Date]

Once again, I am using longinvest's calculator https://www.bogleheads.org/wiki/Calculating_personal_returns, because I like having a consistent means of reporting returns. I understand that everyone has their own way of tracking things, but it sure would be nice if they also used this calculator. H...
by FinancialDave
Sun Jan 03, 2016 1:21 am
Forum: Investing - Theory, News & General
Topic: 2015 BOGLEHEAD CONTEST LEADERS
Replies: 53
Views: 4574

Re: 2015 BOGLEHEAD CONTEST LEADERS

From first to 206. I think I might have been off by one year with my guess :oops:
by FinancialDave
Sun Dec 06, 2015 10:02 pm
Forum: Investing - Help with Personal Investments
Topic: non-Vanguard mutual funds in Roth IRA
Replies: 6
Views: 430

Re: non-Vanguard mutual funds in Roth IRA

As mentioned you can open up a Roth anywhere if you are bound to buy non-Vanguard funds. If you are only buying once a year however I don't see the commissions as a large expense. In my Vanguard Roth I do have one non-Vanguard fund which is a PRIME CAP Odyssey fund, which was very easy to buy and fo...
by FinancialDave
Thu Nov 19, 2015 7:36 pm
Forum: Investing - Theory, News & General
Topic: GE Synchrony Share Exchange
Replies: 50
Views: 7649

Re: GE Synchrony Share Exchange

I am a little curious about the effect of the exchange, which I did not participate in, so this is only theoretical. GE gave a 7% premium for exchanging GE shares for Synchrony. But at the same time, those shares reduced GE's outstanding shares by 6.6%. I see three possibilities, and want to know w...

Go to advanced search