Search found 6524 matches

by Wagnerjb
Sun Feb 14, 2016 11:20 am
Forum: Investing - Theory, News & General
Topic: Any regrets by people 50+ for having a conservative portfolio in their 30's
Replies: 67
Views: 6263

Re: Any regrets by people 50+ for having a conservative portfolio in their 30's

... What I miss about my 30s and 40s are the huge real yields on savings and CDs... I don't remember any time in the last, let's say fifty years as I wasn't pay much attention before then, when there were "huge real yields on savings and CDs." In this forum, I've actually posted a picture...
by Wagnerjb
Sun Feb 14, 2016 11:09 am
Forum: Investing - Theory, News & General
Topic: Any regrets by people 50+ for having a conservative portfolio in their 30's
Replies: 67
Views: 6263

Re: Any regrets by people 50+ for having a conservative portfolio in their 30's

I didn't start investing until I was 30 and I'm 51 now. I made many mistakes along with the way and I was very conservative in the beginning I believe I was 50/50 for quite a while. Having said that, I don't regret it because it kind of worked for me. Bonds were doing better than stocks back then. ...
by Wagnerjb
Sat Feb 13, 2016 3:23 pm
Forum: Investing - Theory, News & General
Topic: Any regrets by people 50+ for having a conservative portfolio in their 30's
Replies: 67
Views: 6263

Re: Any regrets by people 50+ for having a conservative portfolio in their 30's

Wagnerjb, OP is 30 years old at 2016. OP was born around 1986. So, how could OP invest in the 1980s and 1990s? KlangFool The OP is asking those of us in their 50's ("by people 50+") about being conservative in their 30's. Maybe I should rephrase my answer to "If you are in your 50's ...
by Wagnerjb
Sat Feb 13, 2016 11:22 am
Forum: Investing - Theory, News & General
Topic: Any regrets by people 50+ for having a conservative portfolio in their 30's
Replies: 67
Views: 6263

Re: Any regrets by people 50+ for having a conservative portfolio in their 30's

And why is it when people quote my post they always manage to leave the following part out? But if you invest in the long-term you are almost guaranteed a real 7% return in equities, far above the return on bonds, if you simply stay the course with stocks. Let's see if that's true. Answer - not so ...
by Wagnerjb
Fri Feb 12, 2016 9:40 am
Forum: Investing - Theory, News & General
Topic: Any regrets by people 50+ for having a conservative portfolio in their 30's
Replies: 67
Views: 6263

Re: Any regrets by people 50+ for having a conservative portfolio in their 30's

Your reasoning is wrong. Rule of 72 -> Assuming ROI of 6%, it will only take 72/6 = 12 years to double. So, portfolio will be 20X annual expense in 12 years. This is assuming that you do not put in additional money. If you save additional money, you will hit the 20X number even earlier. In summary,...
by Wagnerjb
Mon Feb 08, 2016 9:01 am
Forum: Investing - Theory, News & General
Topic: Why has Oil become such a dominant market influencer?
Replies: 66
Views: 4191

Re: Why has Oil become such a dominant market influencer?

I suspect part of the answer is that oil is a larger part of the US economy than it was in recent past. About 5 years ago or so, oil production in the US increased dramatically as a result of technology improvements that allowed certain types of drilling to be economical. The increased production cr...
by Wagnerjb
Mon Feb 08, 2016 8:56 am
Forum: Investing - Help with Personal Investments
Topic: are you buying or selling or staying the course
Replies: 22
Views: 1415

Re: are you buying or selling or staying the course

I am staying the course, which means rebalancing as necessary, tax loss harvesting, donating the biggest winners, reinvesting dividends and interest as necessary, etc.
by Wagnerjb
Sun Feb 07, 2016 3:41 pm
Forum: Investing - Theory, News & General
Topic: Another corner case for TLH: foreign tax credit
Replies: 5
Views: 421

Re: Another corner case for TLH: foreign tax credit

Maybe there's some reason why foreign taxes and dividends passed through by mutual funds or ETFs don't count, but other than that it looks pretty clear. I am not an expert, but I suspect that is the answer....it only applies to corporations. I searched on the words "mutual funds" in the i...
by Wagnerjb
Fri Feb 05, 2016 10:26 pm
Forum: Personal Finance (Not Investing)
Topic: Please share examples where earning an extra $1 can cost more in taxes than income.
Replies: 49
Views: 5720

Re: Please share examples where earning an extra $1 can cost more in taxes than income.

The savers credit. If you go from $61000 joint AGI to $61001, you lose $400. There are other jumps like that as well with the credit. I agree, and I have seen that effect on my son's tax return. I use a traditional IRA contribution (in his name) to reduce his income just below the closest cutoff po...
by Wagnerjb
Fri Jan 29, 2016 1:19 am
Forum: Investing - Theory, News & General
Topic: Regret of selling winning stocks early
Replies: 29
Views: 2402

Re: Regret of selling winning stocks early

I know a fair number of people who used to work at Enron and who lost a bunch when the company collapsed. For everyone who got lucky with company stock and options, there is an Enron story.

Best wishes.
by Wagnerjb
Fri Jan 29, 2016 1:16 am
Forum: Forum Issues and Administration
Topic: BOGLEHEADS.COM AND BOGLEHEADS.NET
Replies: 51
Views: 4681

Re: BOGLEHEADS.COM AND BOGLEHEADS.NET

Well done Serge and Mel!
by Wagnerjb
Sun Jan 24, 2016 2:10 am
Forum: Investing - Help with Personal Investments
Topic: Please correct my logic
Replies: 17
Views: 1255

Re: Please correct my logic

1 won't underperform 2, but it will have higher volatility.

Your logic is sound, but only if 1 is likely to underperform. If that was true, everybody would follow your option 3.

Best wishes.
by Wagnerjb
Sun Jan 17, 2016 2:51 pm
Forum: Investing - Help with Personal Investments
Topic: Any here invested in individual stocks?
Replies: 36
Views: 2301

Re: Any here invested in individual stocks?

There are several of us who have a portion of our portfolio in a diversified portfolio of individual stocks. If you are interested in the rationale and strategy, I suggest you read the Bogleheads Wiki on passively investing in individual stocks.

Best wishes.
by Wagnerjb
Sat Jan 16, 2016 3:10 pm
Forum: Personal Finance (Not Investing)
Topic: How's it going?....any self-doubt?
Replies: 47
Views: 3856

Re: How's it going?....any self-doubt?

In order to help me stay the course, could people with a 55-60% allocation in stocks give their YTD return, and whether they plan to continue to stay the course. I would especially like to hear from recent retirees as that is me. Thanks much. I recently retired with an Asset Allocation that is appr...
by Wagnerjb
Fri Jan 15, 2016 2:16 am
Forum: Personal Finance (Not Investing)
Topic: What's your company 401k contribution
Replies: 105
Views: 4692

Re: What's your company 401k contribution

The company from which I recently retired would match the first 6% of pay saved in the 401k plan. They also contributed an amount equivalent to between 7-9% of your pay to a defined contribution pension plan (this plan replaced the traditional defined benefit pension for those hired after around 200...
by Wagnerjb
Thu Jan 14, 2016 4:25 pm
Forum: Investing - Theory, News & General
Topic: Are there diminishing returns to tax loss harvesting?
Replies: 23
Views: 1838

Re: Are there diminishing returns to tax loss harvesting?

Say I have a 50 year life expectancy, $150K in carryover losses, and $20K of current losses that could be harvested. Is there any point to harvesting that $20K of losses? Seems to me that there is no utility in harvesting after a certain point, namely when carryover / life expectancy > 3000. I was ...
by Wagnerjb
Tue Jan 12, 2016 11:10 pm
Forum: Personal Finance (Not Investing)
Topic: Retired Bogleheads -- How much did you spend last year?
Replies: 60
Views: 5814

Re: Retired Bogleheads -- How much did you spend last year?

Bustoff wrote:
Last year our total expenses came in at $37,700.

I'm curious how this compares with other retired Bogleheads.


Our expenses will be a whole lot more. I am not 65 yet and I will probably spend close to $37,700 on medical insurance and medical out of pocket costs alone.
by Wagnerjb
Sun Jan 03, 2016 1:15 am
Forum: Investing - Theory, News & General
Topic: Quantifying Single Stock Risk
Replies: 3
Views: 297

Re: Quantifying Single Stock Risk

The amount of additional risk (or volatility) that your individuals stocks have is dependent on whether you have one stock or many stocks, and how well diversified that portfolio is. Here is a study that shows the additional volatility from smaller portfolios. http://ppca-inc.com/pdf/DiversByNumbers...
by Wagnerjb
Mon Dec 28, 2015 11:14 am
Forum: Investing - Help with Personal Investments
Topic: Eaton Vance's ETV -- downsides?
Replies: 5
Views: 397

Re: Eaton Vance's ETV -- downsides?

Iso here's my question: what is the downside to owning this CEF instead of SPY if you are looking for steady income? Why don't you invest in the S&P500? You get a better return. You get to choose your own dividend yield. You get to pay less in income tax. Just sell some shares when you need inc...
by Wagnerjb
Sun Dec 27, 2015 11:05 am
Forum: Investing - Help with Personal Investments
Topic: Covering my risk while reallocating inherited assets
Replies: 10
Views: 568

Re: Covering my risk while reallocating inherited assets

Normally, when you inherit stocks (or any assets), the tax "basis" for you is increased to the market value on the date of death. So these "recently inherited" shares shouldn't have much of a capital gain. Or are there other legal circumstances that resulted in you inheriting sha...
by Wagnerjb
Sat Dec 26, 2015 12:06 pm
Forum: Investing - Theory, News & General
Topic: Tracking Net Worth, insightful and motivating
Replies: 45
Views: 4088

Re: Tracking Net Worth, insightful and motivating

I have a spreadsheet where I have tracked my year-end net worth every year since I started investing in 1983. Like with yours, it is useful to occasionally remind myself that markets will give and take away, but the constant savings serve to support the upward growth of the numbers. It also helps me...
by Wagnerjb
Fri Dec 25, 2015 9:53 am
Forum: Investing - Help with Personal Investments
Topic: Allocation to 5% Guaranteed Product
Replies: 16
Views: 1186

Re: Allocation to 5% Guaranteed Product

I don't work in the insurance industry per se, but the company providing the guarantee is indirectly my employer, so the risk of the guarantee failing is highly correlated to the job loss risk. Sure, but that risk is the same risk for equities (a huge meltdown, with layoffs in every industry), so t...
by Wagnerjb
Thu Dec 24, 2015 4:19 pm
Forum: Investing - Help with Personal Investments
Topic: Allocation to 5% Guaranteed Product
Replies: 16
Views: 1186

Re: Allocation to 5% Guaranteed Product

That's actually a very helpful perspective, and I hadn't thought about it in that context. I suppose the wrinkle would be should Curmudgeon's example prove to be reality, I would likely simultaneously be out of a job, and the contributions wouldn't be there to replenish the losses. Why would a defa...
by Wagnerjb
Thu Dec 24, 2015 3:29 pm
Forum: Investing - Help with Personal Investments
Topic: Allocation to 5% Guaranteed Product
Replies: 16
Views: 1186

Re: Allocation to 5% Guaranteed Product

Welcome to the forum Mimmz: in your situation I would feel comfortable overweighting this product with a bargain return. Back in the early 1980's when inflation was higher (and falling) we had a Stable Value fund in my company's 401k plan that was offering great bargain rates. For example in 1983 it...
by Wagnerjb
Wed Dec 23, 2015 4:02 pm
Forum: Investing - Help with Personal Investments
Topic: Worn Out Blue Collar Shift Worker
Replies: 18
Views: 3883

Re: Worn Out Blue Collar Shift Worker

Hi Ripley, and welcome to the forum. In my opinion, your biggest challenge may be health care between retirement at age 56 and when you reach 65 and qualify for Medicare. I am an early retiree and my (unsubsidized) retiree health insurance is over $1500 per month for me and my spouse (my coverage ex...
by Wagnerjb
Tue Dec 22, 2015 9:43 am
Forum: Personal Finance (Not Investing)
Topic: Biggest lucky break in your personal finances?
Replies: 160
Views: 12165

Re: Biggest lucky break in your personal finances?

I consider my biggest break to having been born with an above-average intelligence and above-average financial aptitude. This blessing was nurtured by my parents, through hard work, discipline, dedication and sacrifice...providing me the environment, the support and the values that I started with. F...
by Wagnerjb
Mon Dec 21, 2015 4:56 pm
Forum: Investing - Help with Personal Investments
Topic: Foreign Tax Credit - how use it before expiry in eight years
Replies: 22
Views: 1208

Re: Foreign Tax Credit - how use it before expiry in eight years

Hello Andy, just for the sake of clarity, I think there is an error in your computation. I believe that the qualified dividend income is included in the foreign source income figure quoted above -- the foreign source income is the actual total dividends paid out (and yes, less than half of VWO divi...
by Wagnerjb
Fri Dec 18, 2015 1:31 pm
Forum: Investing - Theory, News & General
Topic: A perfect storm for investors
Replies: 90
Views: 11573

Re: A perfect storm for investors

http://www.etf.com/sections/index-investor-corner/swedroe-perfect-storm-low-returns The question is what to do about it. Hope isn't a strategy. I hope you find this helpful Larry Larry: I have found forecasts of future equity returns to be unreliable, and IMO they are dangerous. They tend to lead p...
by Wagnerjb
Fri Dec 18, 2015 1:21 pm
Forum: Personal Finance (Not Investing)
Topic: Sales tax deduction 2015?
Replies: 9
Views: 832

Re: Sales tax deduction 2015?

livesoft wrote:Really? Was it signed into law already?


As usual, Livesoft is correct :D

Not law quite yet.....
by Wagnerjb
Fri Dec 18, 2015 1:20 pm
Forum: Investing - Theory, News & General
Topic: Large Energy stocks - why not?
Replies: 157
Views: 9954

Re: Large Energy stocks - why not?

livesoft wrote:
Wagnerjb wrote:...then why are you asking fellow Bogleheads for their opinions? They are going to offer logical, conservative and well-reasoned thoughts, ….

I appreciate the kind words.


Are you sure I was talking about you? :D
by Wagnerjb
Fri Dec 18, 2015 1:14 pm
Forum: Investing - Theory, News & General
Topic: Large Energy stocks - why not?
Replies: 157
Views: 9954

Re: Large Energy stocks - why not?

Although I am a total market investor, XLE, the large oil companies stocks ETF looks very appealing for that portion of the money dedicated to opportunities (Don't we all have it in our blood?) If this is your "play money", then why are you asking fellow Bogleheads for their opinions? The...
by Wagnerjb
Fri Dec 18, 2015 10:59 am
Forum: Personal Finance (Not Investing)
Topic: For people with a MBA..when should I be looking to apply?
Replies: 30
Views: 1836

Re: For people with a MBA..when should I be looking to apply?

I went to a very elite B-school over 30 years ago. At that time, it was preferable to have 2-3 years of working experience and I don't see why it is different today. Whether it is 2 or 3 certainly didn't matter much for me or my colleagues. My advice would be to take a prep course for the GMAT, the ...
by Wagnerjb
Fri Dec 18, 2015 10:27 am
Forum: Investing - Theory, News & General
Topic: selling out of individual stocks question
Replies: 2
Views: 312

Re: selling out of individual stocks question

As I understand it now we, my wife and myself, would owe 15% of cap gains until we reach $411K in taxable income - a figure we would not be able to approach regardless. Thanks again. If you are confident that you will only pay 15% on these capital gains - with no other tax implications - then I agr...
by Wagnerjb
Wed Dec 16, 2015 3:07 pm
Forum: Investing - Theory, News & General
Topic: "Learning From the Oil Bust"
Replies: 17
Views: 2909

Re: "Learning From the Oil Bust"

If you invested in a broad portfolio of MLPs (via the Alerian ETF AMLP), you would have lost an average annual 2.3% of your investment over the past 5 years. On the other hand, if you had invested in Intermediate term bonds (via Vanguard's VBILX) you would have returned a positive annual 4.7% over t...
by Wagnerjb
Wed Dec 16, 2015 2:39 pm
Forum: Personal Finance (Not Investing)
Topic: Optimizing tax credits (EV, AOTC, 2 filers)
Replies: 16
Views: 944

Re: Optimizing tax credits (EV, AOTC, 2 filers)

Yes, this is the case. Last year we actually had her contribute do a tIRA contribution equaling her full earned income (a little less than $5,500) to offset most of the kiddie-tax impact. Perhaps a bit short-sighted (as opposed to doing Roth), but I just hated seeing her hit with that relatively la...
by Wagnerjb
Wed Dec 16, 2015 2:28 pm
Forum: Personal Finance (Not Investing)
Topic: Optimizing tax credits (EV, AOTC, 2 filers)
Replies: 16
Views: 944

Re: Optimizing tax credits (EV, AOTC, 2 filers)

Yes, you are right. In the unusual situation in which a full-time student under 24 manages to have $2,500 in tax liability, she can get the full $2,500 as a nonrefundable credit. That's a relatively rare situation, but I suppose Kevin could potentially help her make that happen if she has enough ap...
by Wagnerjb
Tue Dec 15, 2015 10:39 am
Forum: Investing - Help with Personal Investments
Topic: Foreign Tax Credit - how use it before expiry in eight years
Replies: 22
Views: 1208

Re: Foreign Tax Credit - how use it before expiry in eight years

For reference, here is the tax statement from the latest VWO annual report: Special 2014 tax information (unaudited) for Vanguard Emerging Markets Stock Index Fund This information for the fiscal year ended October 31, 2014, is included pursuant to provisions of the Internal Revenue Code. The fund d...
by Wagnerjb
Tue Dec 15, 2015 10:33 am
Forum: Investing - Help with Personal Investments
Topic: Foreign Tax Credit - how use it before expiry in eight years
Replies: 22
Views: 1208

Re: Foreign Tax Credit - how use it before expiry in eight years

What about "buying the dividend" for Vanguard's EM fund or ETF? For example, VWO. Enough people probably hold it that you could figure out the tax properties of the dividend and how much withholding was. If the withholding is low, i think it would help you use up your FTC. Thanks - will l...
by Wagnerjb
Tue Dec 15, 2015 12:15 am
Forum: Investing - Help with Personal Investments
Topic: Foreign Tax Credit - how use it before expiry in eight years
Replies: 22
Views: 1208

Re: Foreign Tax Credit - how use it before expiry in eight years

The dilemma in a situation like this is whether one wants to get involved in a "dodgy" situation motivated by tax considerations. I don't see anything dodgy about the suggested strategy. Bogleheads don't hesitate to sell or buy right before a dividend, they take actions to legally optimiz...
by Wagnerjb
Mon Dec 14, 2015 6:52 pm
Forum: Investing - Help with Personal Investments
Topic: Foreign Tax Credit - how use it before expiry in eight years
Replies: 22
Views: 1208

Re: Foreign Tax Credit - how use it before expiry in eight years

You would want to invest in a mutual fund or ETF that held securities that a) had a relatively high yield and b) had little or no withholding of local income tax. Does a fund invested in Australia fit this bill? This will result in US Federal income, with little associated foreign withholding tax. Y...
by Wagnerjb
Mon Dec 14, 2015 3:10 pm
Forum: Investing - Theory, News & General
Topic: Morningstar: "Improving Your Finances 'Bogleheads' Test Retirement Readiness"
Replies: 3
Views: 876

Re: Morningstar: "Improving Your Finances 'Bogleheads' Test Retirement Readiness"

Christine's "after" portfolio is still a collection of way too many funds, at 20! Yes, Jeff and Jennifer have something like 9 different accounts to deal with, but I would think one could achieve the appropriate diversification with maybe 12 different funds. I don't see why Jeff and Jennif...
by Wagnerjb
Mon Dec 14, 2015 10:21 am
Forum: Investing - Theory, News & General
Topic: "Learning From the Oil Bust"
Replies: 17
Views: 2909

Re: "Learning From the Oil Bust"

From the article: "Chasing yield beyond the safety of government bonds is a sure way to lose a chunk of your principal. You might never learn that until you can let go of the delusion that the future will repeat the past." I suspect chasing yield - by investing in energy infrastructure MLP...
by Wagnerjb
Sat Dec 12, 2015 4:09 pm
Forum: Investing - Help with Personal Investments
Topic: Substantially identical
Replies: 26
Views: 1697

Re: Substantially identical

If there is " single " " material " difference, they are not substantially identical. This last part is how I make my determination. 1. Index funds that identify the complete list of securities (Dow, S&P 500). Even though funds from different companies might have some tracki...
by Wagnerjb
Sat Dec 12, 2015 11:56 am
Forum: Investing - Help with Personal Investments
Topic: Tax loss harvesting - URTY equivalent
Replies: 2
Views: 222

Re: Tax loss harvesting - URTY equivalent

If this is play money and doesn't matter to your overall financial picture, why don't you sell for the tax loss now and then just wait 30 days and buy back the exact same fund?

Best wishes.
by Wagnerjb
Fri Dec 11, 2015 11:40 pm
Forum: Personal Finance (Not Investing)
Topic: Optimizing tax credits (EV, AOTC, 2 filers)
Replies: 16
Views: 944

Re: Optimizing tax credits (EV, AOTC, 2 filers)

Most students under 24 are eligible for at most $1,500 of the maximum AOT. (If they are under 24, can't qualify for the full $2,500 unless they are providing more than half their own support from their own EARNED income.) I am not sure you have that right. The student can offset a full $2500 of inc...
by Wagnerjb
Fri Dec 11, 2015 8:09 pm
Forum: Investing - Help with Personal Investments
Topic: Investing & Taxes Advice: Capital gains vs IRA conversion
Replies: 9
Views: 459

Re: Investing & Taxes Advice: Capital gains vs IRA conversion

Some numbers to help with the decision: MAGI will be around 55k (15% bracket) Capital gains value: 13k Traditional IRA value: 56k From my calculations, I have about 20k of income before I jump to the 25% tax bracket. Is the $55k figure really your MAGI? If so, then you still have to deduct itemized...
by Wagnerjb
Fri Dec 11, 2015 9:19 am
Forum: Personal Finance (Not Investing)
Topic: Optimizing tax credits (EV, AOTC, 2 filers)
Replies: 16
Views: 944

Re: Optimizing tax credits (EV, AOTC, 2 filers)

Kevin: I really enjoy this stuff :D , so here are a few random thoughts. 1) You mention that bumping up the Roth conversion to achieve the EV credit will cause additional state tax. I assume this is because of your income, not because the Roth conversion puts you into an AMT situation, right? 2) Ass...
by Wagnerjb
Tue Dec 08, 2015 5:53 pm
Forum: Personal Finance (Not Investing)
Topic: Spending down UGMA and financial aid
Replies: 21
Views: 1029

Re: Spending down UGMA and financial aid

I used a UGMA a while back, and found the same lack of official guidance that Spirit Rider mentions. There are no clear rules about the timing of withdrawals, so as he suggests you are probably safe making withdrawals within the same year. I certainly didn't worry about it in my situation. PS: I put...
by Wagnerjb
Mon Dec 07, 2015 9:36 am
Forum: Personal Finance (Not Investing)
Topic: Net Worth -- Salary Ratio at age 30, 35, 40 if plan to retire at 55?
Replies: 17
Views: 3538

Re: Net Worth -- Salary Ratio at age 30, 35, 40 if plan to retire at 55?

I don't know what the "right" answer is, but I will share my numbers: At age 35, I had about 2x my salary in net worth (excluding home equity) At age 40, I had about 6x At age 45, I had about 10x At age 50, I had about 20x At age 55, I had about 25x The increase from age 35 to 40 was prima...

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