Search found 6691 matches

by Wagnerjb
Tue Jul 26, 2016 10:08 am
Forum: Investing - Help with Personal Investments
Topic: Cash Balance Pension - company dicey
Replies: 7
Views: 584

Re: Cash Balance Pension - company dicey

I have had an old pension plan become underfunded and one thing that happened was that it triggered a rule where you could no longer take the lump sum. After about five years you could take half as a lump sum, and eventually all of it again. You really need to find out if the plan is under the PBGC...
by Wagnerjb
Mon Jul 25, 2016 9:40 am
Forum: Investing - Help with Personal Investments
Topic: Wal-Mart 401k guidance
Replies: 8
Views: 959

Re: Wal-Mart 401k guidance

Currently I have 75% in the WM 2050 retirement fund and 25% in the Bond Fund. I would think there are two different strategies that make sense for you. 1) Invest 100% in the WM 2050 retirement fund and forget it. 2) Be a little more active in your investment management and choose individual funds y...
by Wagnerjb
Mon Jul 25, 2016 9:33 am
Forum: Personal Finance (Not Investing)
Topic: Allstate Umbrella Insurance
Replies: 32
Views: 2047

Re: Allstate Umbrella Insurance

In my case, the rate was significantly impacted by teenagers. Before my children were 16, I paid Allstate $317 for a $2 million Umbrella policy. When my first child turned 16 and got a car, the premium jumped to $830. When my second child turned 16 two years later it jumped to $1425. With the kids g...
by Wagnerjb
Sun Jul 24, 2016 9:01 am
Forum: Personal Finance (Not Investing)
Topic: Where should the money go
Replies: 4
Views: 516

Re: Where should the money go

Reducing your 401k contributions (down to the point where you still get the full match) would make sense if you used the extra funds to pay down your mortgage enough to refinance without PMI. After that, if you wanted to increase your emergency fund to a level that you are more comfortable with, tha...
by Wagnerjb
Sat Jul 16, 2016 5:54 pm
Forum: Personal Finance (Not Investing)
Topic: Problem with Costco Citi Card Online
Replies: 5
Views: 897

Re: Problem with Costco Citi Card Online

I am unimpressed with Citi's online capability. Me too. I have been checking the account online, but it was only showing me the charges I made (not those made by my wife). However, the monthly statement amount included both of our charges....so it looked very awkward to see - for example - $150 of ...
by Wagnerjb
Sat Jun 25, 2016 1:24 pm
Forum: Investing - Help with Personal Investments
Topic: Financial lessons learnt very very hard way
Replies: 6
Views: 1505

Re: Financial lessons learnt very very hard way

If you search other threads, you will see several other threads on the same topic.

Best wishes.
by Wagnerjb
Mon Jun 20, 2016 11:57 am
Forum: Investing - Theory, News & General
Topic: "Rekenthaler Report The New 401(k) Argument: Vanguard Costs Too Much"
Replies: 20
Views: 2802

Re: "Rekenthaler Report The New 401(k) Argument: Vanguard Costs Too Much"

Wjb - I think you are missing the point. Are you employed in the finance industry by chance? In many cases (nearly all) participating in a tax advantaged 401(k) is still the better investment choice - even if it is being abused by brokers, "FAs", "Financial Managers" and high fe...
by Wagnerjb
Sat Jun 18, 2016 9:19 am
Forum: Investing - Theory, News & General
Topic: "Rekenthaler Report The New 401(k) Argument: Vanguard Costs Too Much"
Replies: 20
Views: 2802

Re: "Rekenthaler Report The New 401(k) Argument: Vanguard Costs Too Much"

<snip>, but we have no God-given right to a low-cost 401k plan. ...and brokers and FAs have no God-given right to siphon dollars from my retirement savings as a growing percentage of AUM in exchange for giving a few fluffy seminars per year and creating complex default investment options from a con...
by Wagnerjb
Fri Jun 17, 2016 2:45 pm
Forum: Investing - Theory, News & General
Topic: "Rekenthaler Report The New 401(k) Argument: Vanguard Costs Too Much"
Replies: 20
Views: 2802

Re: "Rekenthaler Report The New 401(k) Argument: Vanguard Costs Too Much"

A 2009 study found that for plans with less than $1 million in assets, the median all-in fee (expense ratio and administrative) was 1.89% . Taylor, this explains it all. If a plan has only 1 million in assets, that means it is a small company or only a few employees are participating and the plan h...
by Wagnerjb
Wed Jun 15, 2016 10:27 am
Forum: Personal Finance (Not Investing)
Topic: How much do you spend on insurance?
Replies: 25
Views: 2072

Re: How much do you spend on insurance?

House: $3,000
4 cars: $3,400
Umbrella: $1,000
Vacation condo: $600
Flood: $500
Health: $22,000

No life insurance or disability as I am retired (but not yet 65).
by Wagnerjb
Sun Jun 12, 2016 9:33 am
Forum: Investing - Help with Personal Investments
Topic: Vanguard IRA & Roth Investments & Allocations
Replies: 8
Views: 704

Re: Vanguard IRA & Roth Investments & Allocations

Hi John: please tell us the expense ratio of the funds offered in your 401k. That will have a significant impact on the recommendations you receive.
by Wagnerjb
Sat Jun 11, 2016 4:04 pm
Forum: Investing - Theory, News & General
Topic: Illiquid assets pay you for holding them (?)
Replies: 34
Views: 1847

Re: Illiquid assets pay you for holding them (?)

What are readily available illiquid assets that we can get paid for holding simply because they are illiquid? I am getting paid a nice premium for holding brokered CDs. You cannot redeem them at the bank, you must sell on the open market (through Vanguard or Fidelity for example). For this illiquid...
by Wagnerjb
Sat Jun 11, 2016 11:53 am
Forum: Personal Consumer Issues
Topic: Credit card for college-aged daughter
Replies: 36
Views: 1979

Re: Credit card for college-aged daughter

I had a bad experience trying this. [...] ... we she listed (truthfully) her income as $0. She was rejected, and the rejection letter said it was due to no income. Sounds like another reason to try to have a job during college or the summers. :) She had some great summer jobs in high school and the...
by Wagnerjb
Sat Jun 11, 2016 11:31 am
Forum: Investing - Help with Personal Investments
Topic: Tax Strategies for Income Dip preceding Hike?
Replies: 15
Views: 1359

Re: Tax Strategies for Income Dip preceding Hike?

[4. In your tax bracket, it does not make much sense to use tax-exempt bonds. What I found is that a person who is trying to stuff capital gains into the 15% bracket can have a 30% marginal bracket. Let's say the OP has $30k of ordinary income and $10k of dividend income. They can realize $58k in c...
by Wagnerjb
Sat Jun 11, 2016 11:01 am
Forum: Personal Consumer Issues
Topic: Credit card for college-aged daughter
Replies: 36
Views: 1979

Re: Credit card for college-aged daughter

I had a bad experience trying this. My daughter was set to graduate in December 2015 and about three months before graduation we applied for a card for her with Capital One. I had researched cards aimed at students and this one required a University e-mail address (apparently to verify the status as...
by Wagnerjb
Sat Jun 11, 2016 10:52 am
Forum: Investing - Help with Personal Investments
Topic: Portfolio Suggestions
Replies: 8
Views: 837

Re: Portfolio Suggestions

I just looked at the Vanguard fund performance. The Emerging Markets fund has a 10-year return of 2.86%. Not only is that positive, but it is better then (Developed) European markets and (Developed) Asian markets. If you are truly committed to a global portfolio, you should have a fair amount in EM....
by Wagnerjb
Sat Jun 11, 2016 10:25 am
Forum: Investing - Theory, News & General
Topic: Illiquid assets pay you for holding them (?)
Replies: 34
Views: 1847

Re: Illiquid assets pay you for holding them (?)

What are readily available illiquid assets that we can get paid for holding simply because they are illiquid? I am getting paid a nice premium for holding brokered CDs. You cannot redeem them at the bank, you must sell on the open market (through Vanguard or Fidelity for example). For this illiquid...
by Wagnerjb
Sat Jun 11, 2016 10:19 am
Forum: Investing - Help with Personal Investments
Topic: Tax Strategies for Income Dip preceding Hike?
Replies: 15
Views: 1359

Re: Tax Strategies for Income Dip preceding Hike?

I would consider selling the appreciated stock, but you can only take a certain amount of capital gain before the incremental gains become taxable. For a couple, I believe your bottom-line taxable income must be under around $75k in order for all of the CG to be free of tax. You can use an online ta...
by Wagnerjb
Fri Jun 10, 2016 6:08 pm
Forum: Investing - Theory, News & General
Topic: Illiquid assets pay you for holding them (?)
Replies: 34
Views: 1847

Re: Illiquid assets pay you for holding them (?)

What are readily available illiquid assets that we can get paid for holding simply because they are illiquid? I am getting paid a nice premium for holding brokered CDs. You cannot redeem them at the bank, you must sell on the open market (through Vanguard or Fidelity for example). For this illiquid...
by Wagnerjb
Wed Jun 08, 2016 4:08 pm
Forum: Personal Finance (Not Investing)
Topic: Company Being Acquired - Any Advice?
Replies: 36
Views: 3952

Re: Company Being Acquired - Any Advice?

Does your company have a traditional pension plan? I ask because having such a pension plan may be a good argument for not asking for the Severance package. In my experience, working 15 years at two different firms is FAR inferior to working 30 years at one firm when it comes to the pension plan. Th...
by Wagnerjb
Wed Jun 08, 2016 4:00 pm
Forum: Personal Finance (Not Investing)
Topic: When would you stop paying for disability insurance?
Replies: 20
Views: 1369

Re: When would you stop paying for disability insurance?

At what point would it be desirable/cost effective to cut the DI cord or Life Insurance cord? Insurance (even DI) is to prevent financial catastrophe. As soon as I was financially independent by a sufficient margin, I cancelled my DI. Another way to view it is, "Can I retire *now* with ease? I...
by Wagnerjb
Wed Jun 08, 2016 3:58 pm
Forum: Investing - Help with Personal Investments
Topic: Vanguard Limited-Term Tax Exempt (VMLTX) doing better than SEC yield implied over past 5 years?
Replies: 22
Views: 1322

Re: Vanguard Limited-Term Tax Exempt (VMLTX) doing better than SEC yield implies over past 5 years?

It could have something to do with the fact that rates have dropped about 80-90bps on similar duration bonds over the past 5 years. As in, if rates went back up to the point they were 5 years ago, you would see the actual returns become more in line with the SEC yield? Does that make sense? I could...
by Wagnerjb
Wed Jun 08, 2016 7:27 am
Forum: Investing - Theory, News & General
Topic: Unnecessary risk for the sake of unnecessary diversification
Replies: 54
Views: 3801

Re: Unnecessary risk for the sake of unnecessary diversification

You have a traditional sense for investing and consider stocks to be speculation (literally, a theory about the future without firm evidence) and quality bonds as investment (with legal claims to available assets). If you truly consider stocks to be speculation, then I wouldn't describe your sense ...
by Wagnerjb
Tue Jun 07, 2016 12:27 pm
Forum: Investing - Theory, News & General
Topic: Int'l Bonds - "A Key Asset Class Most Investors Completely Ignore"
Replies: 76
Views: 5919

Re: "A Key Asset Class Most Investors Completely Ignore"

"In the bond space, investors are even further behind. Most investors have zero percent exposure to international debt. You wouldn't accept a portfolio with zero percent international equity exposure, so why are you doing it in bonds?" I am doing it in bonds because I don't need diversifi...
by Wagnerjb
Tue Jun 07, 2016 10:22 am
Forum: Investing - Help with Personal Investments
Topic: Is this market timing?
Replies: 17
Views: 1508

Re: Is this market timing?

Not market timing. Besides, who cares if you market time or not? I am unaware of any Market Timing Police that come to your door and take you away in handcuffs. Bunching of deductions is discussed often enough. :) Search the forum if you like. I agree with Livesoft. Lots of Bogleheads have a Donor ...
by Wagnerjb
Mon Jun 06, 2016 1:13 pm
Forum: Investing - Help with Personal Investments
Topic: Couple 58 trying to catch up advice needed
Replies: 11
Views: 1487

Re: Couple 58 trying to catch up advice needed

Mattshwink, Didn't know we could contribute to IRAs given our income so thanks. I'll pursue that. Alouette Be careful. Matt's advice on funding a "backdoor Roth IRA" is best used by people who have no pretax IRA balances. In that case, you can contribute to a non-deductible IRA and conver...
by Wagnerjb
Sun Jun 05, 2016 9:36 am
Forum: Investing - Theory, News & General
Topic: How much is automated Tax-Loss Harvesting worth?
Replies: 36
Views: 2241

Re: How much is automated Tax-Loss Harvesting worth?

If the market goes up from day 1, and you don't make any new investments, you will have zero return from TLH. Not at all. Betterment (and other similar services) will invest your assets in a diversified portfolio but they will either invest in multiple ETFs across sectors, or in individual stocks. ...
by Wagnerjb
Sun Jun 05, 2016 9:27 am
Forum: Investing - Theory, News & General
Topic: How much is automated Tax-Loss Harvesting worth?
Replies: 36
Views: 2241

Re: How much is automated Tax-Loss Harvesting worth?

I don't understand how they can project a RofR for TLH. It all depends on the market. If you are up to date with TLH, there is no immediate opportunity. If the market goes up from day 1, and you don't make any new investments, you will have zero return from TLH. Do they just assume that they can co...
by Wagnerjb
Sun Jun 05, 2016 9:13 am
Forum: Personal Finance (Not Investing)
Topic: Life Insurance ... a sure way to get Wealthy?
Replies: 19
Views: 2266

Re: Life Insurance ... a sure way to get Wealthy?

I am afraid your friend respects the advice of somebody who isn't giving good advice. I don't know a single person who has ever become well off by this gimmick. Remember, if it sounds too good to be true....it probably is.
by Wagnerjb
Fri Jun 03, 2016 8:44 am
Forum: Personal Finance (Not Investing)
Topic: Pay off Student Loans vs Maxing 401k
Replies: 35
Views: 2685

Re: Pay off Student Loans vs Maxing 401k

In your shoes I would probably 1) get the match in the 401k, 2) build an emergency fund in an after-tax account and 3) fund an IRA. Use any excess to pay down student loans. While you are living at home, you can pay down aggressively since you (I assume) don't have to pay rent or utilities. By the t...
by Wagnerjb
Tue May 31, 2016 1:51 pm
Forum: Investing - Theory, News & General
Topic: can you construct a zero DY well diversified S&P 500 portfolio?
Replies: 6
Views: 670

Re: can you construct a zero DY well diversified S&P 500 portfolio?

curious about this. is it possible to construct well diversifed, sector neutral portfolio with S&P 500 stocks and zero - or miniscule - dividend yields? I built a portfolio of US Large Cap stocks for my taxable account, holding around 30-35 individual stocks. Studies have shown that a portfolio...
by Wagnerjb
Sat May 28, 2016 11:29 am
Forum: Investing - Help with Personal Investments
Topic: Skip company stock purchase?
Replies: 9
Views: 870

Re: Skip stock options?

I would fund the 401k up to the limit of the matching. Then I would take advantage of the 15% discount on company stock (you mean shares of stock, not stock options, right?), being sure to sell the shares as soon as legally permissible. Do not - I repeat do not - hold on to the company stock once th...
by Wagnerjb
Sat May 28, 2016 11:11 am
Forum: Personal Finance (Not Investing)
Topic: "Why The Empty Nest Transition Is Crucial For Retirement Success" by Michael Kitces
Replies: 21
Views: 2398

Re: "Why The Empty Nest Transition Is Crucial For Retirement Success" by Michael Kitces

From the article: The bottom line, though, is simply this: perhaps it’s time to stop guilting parents in their 30s and 40s about not saving enough, and recognize the savings opportunity for empty nesters in their 50s and 60s. Because telling parents to save 10%-20% of their income during the child-r...
by Wagnerjb
Fri May 27, 2016 8:50 am
Forum: Investing - Help with Personal Investments
Topic: Lump Sum Pension Offer
Replies: 21
Views: 1978

Re: Lump Sum Pension Offer

It sounds too good to be true that you are eligible for a more than 1000$ a month pension after 4 years of employment. Was it a very high paid job? I helped someone fill out their pension paperwork, admittedly for a lowish paid job, and it was about 400$/month at age 65 after 30 plus years of work ...
by Wagnerjb
Thu May 26, 2016 5:08 pm
Forum: Investing - Theory, News & General
Topic: The problem with predictions: Will 2000-Era Retirees Experience the Worst Retirement Outcomes in U.S. History?
Replies: 33
Views: 3527

Re: The problem with predictions: Will 2000-Era Retirees Experience the Worst Retirement Outcomes in U.S. History?

Keep in mind that "failure" of your portfolio doesn't necessarily mean you are living with your children and eating cat food. It just means that you have only social security, a pension (possibly) and the potential to sell your house or enter into a reverse mortgage.
by Wagnerjb
Thu May 26, 2016 12:50 pm
Forum: Investing - Theory, News & General
Topic: The problem with predictions: Will 2000-Era Retirees Experience the Worst Retirement Outcomes in U.S. History?
Replies: 33
Views: 3527

Re: The problem with predictions: Will 2000-Era Retirees Experience the Worst Retirement Outcomes in U.S. History?

I came across a 2010 paper from Wade Pfau (http://ssrn.com/abstract=1717283) where he found that someone who retired in 2000 had the worst first 10-years in retirement history (1929 and 1999 tied for second place). Yes, that is probably true. But Wade twists the scenarios as hard as he can to find ...
by Wagnerjb
Tue May 24, 2016 2:51 pm
Forum: Investing - Help with Personal Investments
Topic: International small cap as only international fund
Replies: 8
Views: 645

Re: International small cap as only international fund

I know many of you already tilt small cap international, but given the correlation between domestic and international large-cap, would anyone consider only owning international small cap (VFSVX, for example) as their sole international holding? Does anyone here already do this? I tilt quite a bit t...
by Wagnerjb
Tue May 24, 2016 10:56 am
Forum: Investing - Help with Personal Investments
Topic: I just shorted the S&P, now what do I do?
Replies: 61
Views: 6413

Re: I just shorted the S&P, now what do I do?

No. Buying a put on an asset that you own is different than shorting. In particular, you still have the upside from the asset. You also have protection against downward movement. And you have paid a premium for that protection. In this case, the put buyer paid about $9500 to protect $201,000 of the...
by Wagnerjb
Tue May 24, 2016 10:51 am
Forum: Personal Finance (Not Investing)
Topic: Deferred Comp: How long do you trust your company?
Replies: 49
Views: 4568

Re: Deferred Comp: How long do you trust your company?

However many of these high income individuals will have other sources of income which use up their lower tax brackets: social security, pensions, maturing savings bonds, RMDs. I suspect the gain is typically less than you have calculated. The gain may be less for some, but they would know that in a...
by Wagnerjb
Mon May 23, 2016 6:53 pm
Forum: Investing - Help with Personal Investments
Topic: I just shorted the S&P, now what do I do?
Replies: 61
Views: 6413

Re: I just shorted the S&P, now what do I do?

I have my play funds and decided this morning I wanted to short the S&P by buying Dec 16 puts on SPY @ 201 strike price (10 contracts). Not sure why I felt the need to do this as a huge chunk of my investments are in the S&P 500 index. So....you are long the S&P500 in your retirement po...
by Wagnerjb
Mon May 23, 2016 2:47 pm
Forum: Personal Finance (Not Investing)
Topic: Deferred Comp: How long do you trust your company?
Replies: 49
Views: 4568

Re: Deferred Comp: How long do you trust your company?

Minimal downside to your approach, but what is the upside? Will your tax bracket be meaningfully lower? Let me give you a hypothetical as to how this might look for a higher-income individual. (I will use rounded numbers and simplify, so this isn't exact). Let's say they defer $75,000 per year for ...
by Wagnerjb
Mon May 23, 2016 11:52 am
Forum: Investing - Help with Personal Investments
Topic: Advice for a soon-to-be MLB draftee
Replies: 48
Views: 5987

Re: Advice for a soon-to-be MLB draftee

I have acquaintances like that. They suggested the draftee continue to live like a college student and invest their entire compensation. This has always been beneficial because most signees wash-out in a couple of years and then it is back to the ol' grind. Good advice. I play golf with a co-worker...
by Wagnerjb
Mon May 23, 2016 11:28 am
Forum: Personal Finance (Not Investing)
Topic: Deferred Comp: How long do you trust your company?
Replies: 49
Views: 4568

Re: Deferred Comp: How long do you trust your company?

Employment separation can happen through quitting, either voluntarily or involuntarily. Are you planning for that too? It may cause a ‘distribution event’ and some NQ plans return all the deferred money in lump sum which can trigger tax liability. I tried to find out if NQ money can be converted to...
by Wagnerjb
Mon May 23, 2016 11:22 am
Forum: Investing - Theory, News & General
Topic: Stocks, Bonds, and "Real Assets" (TIPS, REITs, Commodities)
Replies: 28
Views: 2165

Re: Stocks, Bonds, and "Real Assets" (TIPS, REITs, Commodities)

I believe something like 50% of the S&P500 sales/earnings/profits are sourced from foreign business activity. Pretty much a relatively low cost/tax efficient 'global' already. Our UK FTSE100 index (100 largest firms) source around 75% to 80% I believe from foreign. If I hold foreign then there'...
by Wagnerjb
Mon May 23, 2016 11:01 am
Forum: Investing - Help with Personal Investments
Topic: 401k Advice
Replies: 6
Views: 547

Re: 401k Advice

katzmandu wrote:
bmoore1611 wrote:Thank you. I edited the original list to reflect the expense ratios.


Looks like the only 2 worth putting money into are your Fidelity Spartan options. The rest of the ratios range from bad to "Are you kidding me?"


I agree
by Wagnerjb
Mon May 23, 2016 10:51 am
Forum: Personal Finance (Not Investing)
Topic: Deferred Comp: How long do you trust your company?
Replies: 49
Views: 4568

Re: Deferred Comp: How long do you trust your company?

My plan is when I have a substantial amount in, saying 7 figures, I plan to buy way out of the money put options against the company so in the event they go out of business I'll collect on the put option Another strategy that I belive would work is buying a credit default swap against the company b...
by Wagnerjb
Sun May 22, 2016 10:01 am
Forum: Investing - Help with Personal Investments
Topic: Rollover - silly concern
Replies: 27
Views: 1961

Re: Rollover - silly concern

Our pension plan has the same archaic rules. Both my wife (in 2011) and I (in 2015) requested a Lump Sum distribution from our pension plan, and we got a paper check in the mail. It was made out "Vanguard FBO IRA my name". I simply mailed the check to Vanguard and it turned out fine. When ...
by Wagnerjb
Sun May 22, 2016 9:52 am
Forum: Personal Finance (Not Investing)
Topic: Deferred Comp: How long do you trust your company?
Replies: 49
Views: 4568

Re: Deferred Comp: How long do you trust your company?

So we have crossed our fingers and hope not to exceed 25 percent of our retirement savings in the plan, with retirement being 10 to 15 years out for my wife, sooner for me. That may be too risky, not sure... And just to make things even dicier, the bond fund options in the plan are poor, so we have...

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