Search found 840 matches

by dharrythomas
Sun May 27, 2018 2:19 pm
Forum: Investing - Help with Personal Investments
Topic: Retiring and have questions about retirement accounts
Replies: 8
Views: 636

Re: Retiring and have questions about retirement accounts

You should be able to fool your 401(K) to Vanguard, but you'll need to check with your plan. Drawing retirement accounts early (pre 59.5) is complicated so you'll need to check with the plan on the details. There is a rule about periodic withdrawals that allows you to take some early withdrawals but...
by dharrythomas
Sun May 27, 2018 2:02 pm
Forum: Personal Finance (Not Investing)
Topic: Why pay cash for a car?
Replies: 185
Views: 18051

Re: Why pay cash for a car?

We pay cash for cars because we don't like debt. I do think we buy less car and since I've bought 3 for me a 1988, 1995, and a 2005, I make them last when I get them.

I buy miles not a status symbol.
by dharrythomas
Tue May 22, 2018 7:02 pm
Forum: Investing - Help with Personal Investments
Topic: Newbie Needing Help For Mom
Replies: 18
Views: 756

Re: Newbie Needing Help For Mom

I wouldn't try to change what you did this year, I would consider the traditional option going forward. The advantage to the Roth is that it keeps retirement income low, which may help with the tax on SS benefits. On the other hand, if she's eligible, a traditional account cuts current taxes and wou...
by dharrythomas
Tue May 22, 2018 5:32 pm
Forum: Investing - Help with Personal Investments
Topic: Where Should I Invest 3k in Taxable Account? 100% VTSMX?
Replies: 11
Views: 1200

Re: Where Should I Invest 3k in Taxable Account? 100% VTSMX?

I like Total World Stock, but TSM is great too.

Good luck.
by dharrythomas
Tue May 22, 2018 5:29 pm
Forum: Investing - Help with Personal Investments
Topic: Newbie Needing Help For Mom
Replies: 18
Views: 756

Re: Newbie Needing Help For Mom

Tax managed balanced has about 51% municipal bonds and 49% US large cap stocks. Total World Stock is 100% stock with significant international stock that varies by market capitalization. You can mix and match the two funds to get an asset allocation you want in a lot of places between 51% stock and ...
by dharrythomas
Tue May 22, 2018 5:14 pm
Forum: Investing - Help with Personal Investments
Topic: Can I afford to retire now?
Replies: 45
Views: 6338

Re: Can I afford to retire now?

I think you can pay off the house and retire. Many of us who itemized are now going to be taking the standard deduction. With careful management, you can make it even in a high cost of living area.

Good luck.
by dharrythomas
Tue May 22, 2018 4:53 pm
Forum: Investing - Help with Personal Investments
Topic: Newbie Needing Help For Mom
Replies: 18
Views: 756

Re: Newbie Needing Help For Mom

TR2030 is fine for the Roth so is one of the LifeStrategy Funds. I love Roths, but if she's eligible based on income, she might be better off with a traditional IRA. It sounds like her income will be much lower in retirement. Many of the people here who push Roth, already have significant tax deferr...
by dharrythomas
Tue May 22, 2018 4:07 pm
Forum: Investing - Theory, News & General
Topic: Typical interest rate earned by target date funds in retirement?
Replies: 28
Views: 1871

Re: Typical interest rate earned by target date funds in retirement?

The thing you need to understand about the 4% withdrawal rate is that you are spending principal as well as income. For the studies, not being at $0 at the end of the time period is considered success. With a 4% SWR, you should be prepared for a decreasing balance over time. May not happen, but you ...
by dharrythomas
Tue May 22, 2018 3:56 pm
Forum: Investing - Theory, News & General
Topic: Theory: Total World Index a Sure Fire Win [VT/VTWSX]
Replies: 130
Views: 9431

Re: Theory: Total World Index a Sure Fire Win [VT/VTWSX]

I find it really funny that according to the Credit Suisses Yearbook, Austria (tiny nation in central Europe, never mind) made up roughly 5% of global market cap in 1899. Now it's 0.06% (according to the FTSE All-World Index). Home-country bias wouldn't have paid off for me had I lived back then :)...
by dharrythomas
Sat May 19, 2018 10:11 pm
Forum: Investing - Help with Personal Investments
Topic: Help Me Help Parents
Replies: 12
Views: 1345

Re: Help Me Help Parents

I agree with Watty. Take the $40K and this year's RMD and pay down the mortgage balance. Being out of debt has the same basic result as an annuity with added flexibility. I would not pull money from the IRA early to pay off the mortgage as you want to minimize taxes.
by dharrythomas
Sat May 19, 2018 9:58 pm
Forum: Investing - Help with Personal Investments
Topic: Young Doctor Couple - Starting Work, Starting to Invest
Replies: 31
Views: 2736

Re: Young Doctor Couple - Starting Work, Starting to Invest

I am strongly anti-debt, but the nice thing about student loans is that they are unsecured personal debt and if you were to die your estate doesn't have to pay them off. It is one kind of debt I might delay paying off while I built up the investment account and home equity. I think of it as similar ...
by dharrythomas
Sat May 19, 2018 9:44 pm
Forum: Investing - Help with Personal Investments
Topic: Buying shares in Demutualized bank
Replies: 19
Views: 1479

Re: Buying shares in Demutualized bank

I have no experience with demulualization, but did invest in a couple of bank start-ups. One is not listed anywhere, after 16 years, the first offered to buy back shares at book value (4x initial purchase price), after 18 years, we've received more than the initial purchase price in dividends. One, ...
by dharrythomas
Sat May 19, 2018 9:03 pm
Forum: Investing - Help with Personal Investments
Topic: Would like to simplify my portfolio. Any thoughts?
Replies: 23
Views: 901

Re: Would like to simplify my portfolio. Any thoughts?

The general rule is that you're wasting your time with allocations less than 5%. You add needless complexity to your account without moving the needle on returns. No matter how good you do with that portion, it gets buried when it is averaged into your total portfolio return. Even if it went to zero...
by dharrythomas
Sat May 19, 2018 9:33 am
Forum: Investing - Theory, News & General
Topic: If RMD are large should you still defer into 401k
Replies: 32
Views: 2991

Re: If RMD are large should you still defer into 401k

You could consider shifting your deferrals to a Roth account if available. Then before retirement, roll it to a Roth IRA and avoid MRDs. You give up the current tax deduction but save later.
by dharrythomas
Tue May 15, 2018 3:05 pm
Forum: Investing - Theory, News & General
Topic: Volatility tolerance build up
Replies: 11
Views: 863

Re: Volatility tolerance build up

It also might depend on whether your job has a defined benefit pension or not. After I locked in my Army Reserve pension, I felt free to take addition risk with my portfolio and with my career knowing that I had a solid floor below which my wife wouldn't fall in retirement regardless. A pension and ...
by dharrythomas
Tue May 15, 2018 2:47 pm
Forum: Investing - Theory, News & General
Topic: How much should I save before I start investing? and more
Replies: 13
Views: 1896

Re: How much should I save before I start investing? and more

If you've got earned income, you can invest in an IRA preferably Roth IRA. With $1,000 Vanguard will let you open accounts with the STAR Fund or a Target Retirement Fund which provide broad diversification in balanced fund of funds. I usually recommend TR.

Good luck.
by dharrythomas
Tue May 15, 2018 2:40 pm
Forum: Investing - Theory, News & General
Topic: Good idea investing now in long term funds?
Replies: 57
Views: 4007

Re: Good idea investing now in long term funds?

If the Fed has artificially kept interest rates low, interest rates have to go up. If we're in a world with abundant capital chasing returns, long term rates might remain low. The way I look at it is that when rates were 15-18% on long bonds there was a great deal of upside with minimal risk or at l...
by dharrythomas
Tue May 15, 2018 1:56 pm
Forum: Investing - Theory, News & General
Topic: Roth IRA or Taxable Account
Replies: 7
Views: 763

Re: Roth IRA or Taxable Account

Composition of the Roth accounts would depend on whether you already have a 401(K), a traditional IRA or a taxable account. It should all be considered one portfolio.

I like the LifeStrategy and Target Retirement funds. All index, stocks and bonds, domestic and international.

Good luck.
by dharrythomas
Tue May 15, 2018 1:06 pm
Forum: Investing - Help with Personal Investments
Topic: Advice for My Mom's Retirement Portfolio
Replies: 5
Views: 622

Re: Advice for My Mom's Retirement Portfolio

Welcome to the forum!! Hope we can help. Your mother is in good shape. As the savings bonds mature, put them in the checking account to replenish her account. I'd wait a couple of years on converting the annuities into income streams since your values will increase not only with time but also with t...
by dharrythomas
Tue May 08, 2018 7:54 pm
Forum: Investing - Theory, News & General
Topic: Happy 89th birthday to [Jack] Bogle
Replies: 44
Views: 2463

Re: Happy 89th birthday to Bogle

Happy Birthday and God bless!!
by dharrythomas
Thu May 03, 2018 6:02 pm
Forum: Investing - Theory, News & General
Topic: How does stock buyback benefit investors?
Replies: 78
Views: 6046

Re: How does stock buyback benefit investors?

Some investors sell their stock back. Other investors get a larger percentage of the company. Like with all dividends, the real question is whether the company can make a higher rate of return than the investor can get elsewhere. If a company does not have better investment options internally, eithe...
by dharrythomas
Wed May 02, 2018 12:36 pm
Forum: Investing - Help with Personal Investments
Topic: Need Wise and Witty Boglehead review of Pre-Retirement Portfolio
Replies: 16
Views: 1641

Re: Need Wise and Witty Boglehead review of Pre-Retirement Portfolio

What I meant about the 401(K) was to put all of the funds in the Blackrock Target date fund. If you have a fund with 3% of you assets, it just doesn't matter. Double the return of everything else or half the return of everything else, it doesn't move the needle on total portfolio return. Simplify. Y...
by dharrythomas
Wed May 02, 2018 12:21 pm
Forum: Investing - Help with Personal Investments
Topic: Retirement at 43-45 (Military)
Replies: 17
Views: 2784

Re: Retirement at 43-45 (Military)

With a Roth IRA, you can withdraw contributions, not earnings, tax free at any time. With the upcoming changes in TSP withdrawal rules, you'll be able to roll the Roth TSP into an IRA upon retirement.

Traditional, there is a penalty until 59.5

Good luck
by dharrythomas
Tue May 01, 2018 9:01 pm
Forum: Investing - Help with Personal Investments
Topic: EMs in TSP's I fund: New AA for TSP and Roth IRA?
Replies: 9
Views: 609

Re: EMs in TSP's I fund: New AA for TSP and Roth IRA?

There is absolutely nothing wrong with option A.

I'd go 10 years beyond the TSP recommendation, the asset allocations are very conservative.

I use Lifecyle in the TSP and LifeStrategy at Vanguard.

Good Luck.

Harry
by dharrythomas
Tue May 01, 2018 8:55 pm
Forum: Investing - Help with Personal Investments
Topic: Need Wise and Witty Boglehead review of Pre-Retirement Portfolio
Replies: 16
Views: 1641

Re: Need Wise and Witty Boglehead review of Pre-Retirement Portfolio

I'll try to address some of your questions. But first, you have way to many different funds. We've got 6 different investment accounts--5 at Vanguard--and 5 funds--TSP Lifecycle 2040, Total world Stock, Tax Managed Balanced, LifeStrategy Moderate Growth, LifeStrategy Growth. A little higher expense ...
by dharrythomas
Tue May 01, 2018 8:10 pm
Forum: Investing - Help with Personal Investments
Topic: Retirement at 43-45 (Military)
Replies: 17
Views: 2784

Re: Retirement at 43-45 (Military)

I use USAA for home, auto, and umbrella insurance, banking and credit card. I've had two mortgages and maybe a refi with them. We even periodically use their buying and travel services. We had some of their mutual funds in the late 80s. I quite sending them new money and moved the last of our accoun...
by dharrythomas
Sat Apr 14, 2018 6:43 am
Forum: Investing - Theory, News & General
Topic: Is there a such thing as a blue collar Boglehead?
Replies: 251
Views: 36071

Re: Is there a such thing as a blue collar Boglehead?

I can't ever claim to have been blue collar. But I had a number of years where I was making about the median wage at my primary job. 6 months between jobs, went to school at night several times. And I guess the work I did performing environmental field sampling in superfund sites is not different fr...
by dharrythomas
Sun Feb 18, 2018 8:31 pm
Forum: Investing - Help with Personal Investments
Topic: Really need an advice: sell the house or rent it out
Replies: 40
Views: 2394

Re: Really need an advice: sell the house or rent it out

There are no guarantees. I do not recommend that anyone with the equity or cash to sale become a landlord by default. It is a business and unless you want to work the business and are ready for the good and the bad stay out of it. If you want the money for a home purchase in 6 years, I would not con...
by dharrythomas
Fri Feb 16, 2018 9:40 pm
Forum: Investing - Theory, News & General
Topic: Can someone help me explain to my wife...?
Replies: 81
Views: 10057

Re: Can someone help me explain to my wife...?

No, I've given up. I've avoided the worst pitfalls (tech stocks and the housing bubble) because I didn't understand what was going on and got out of debt and stayed diversified. Told her I didn't understand and it wouldn't end well. I've been trying to explain that that is not the same as trying to ...
by dharrythomas
Sun Jan 07, 2018 8:20 pm
Forum: Investing - Help with Personal Investments
Topic: Military Deployment Help—TSP Optimization
Replies: 17
Views: 1725

Re: Military Deployment Help—TSP Optimization

If you are able to commit $55K to retirement, I recommend tax exempt and Roth TSP. Upon retirement, you can execute a rollover using TSP partial withdrawal taking TSP balance down to the minimum separating tax deferred, Roth, and tax exempt monies. When you get the check for tax exempt monies, you ...
by dharrythomas
Sun Jan 07, 2018 11:47 am
Forum: Investing - Theory, News & General
Topic: Does the S&P 500 Grow Faster Than the Economy?
Replies: 31
Views: 3256

Re: Does the S&P 500 Grow Faster Than the Economy?

Only in the short run, in the long term there should be rough correlation offset by cyclical changes in the P/E ratio. Of course, the short run may last longer than any individual's investing horizon.
by dharrythomas
Sat Jan 06, 2018 7:06 pm
Forum: Investing - Help with Personal Investments
Topic: Do we have too much in bonds?
Replies: 25
Views: 2927

Re: Do we have too much in bonds?

Don't take more risk than you need too. It appears that you have won, 45/55 would seem within the zone of reasonableness.
by dharrythomas
Sat Jan 06, 2018 7:00 pm
Forum: Investing - Help with Personal Investments
Topic: Is now not a good time to start investing?
Replies: 36
Views: 3091

Re: Is now not a good time to start investing?

It is always a good time to start investing. +1 The other good quote above is were cfs says "Nobody knows nothing" Invest you must! If you were in your mid-50's with 80% stocks this far into a bull market, with money you can never replace and need for retirement, it is probably time to trim the ris...
by dharrythomas
Fri Jan 05, 2018 10:19 pm
Forum: Investing - Theory, News & General
Topic: Hitting The Sell Button
Replies: 226
Views: 28219

Re: Hitting The Sell Button

Nedsaid, Thanks. Great thread. 55 plan to retire at 62, though may continue to work, definitely will be doing something different. Will have GS and Army Reserve Pensions that with SS should give us enough. I made my plan while working in the private sector and just kept working it when I became a FE...
by dharrythomas
Fri Jan 05, 2018 8:52 pm
Forum: Investing - Theory, News & General
Topic: Talk me out of a 60/40 AA
Replies: 76
Views: 9024

Re: Talk me out of a 60/40 AA

Sandtrap wrote:
Thu Jan 04, 2018 9:56 pm
Ferri on Bernstein's 60/40 allocation:
He has an interesting take on things you might find interesting.
http://www.etf.com/sections/index-inves ... nopaging=1
[/quote]

+1
by dharrythomas
Fri Jan 05, 2018 8:39 pm
Forum: Investing - Theory, News & General
Topic: Talk me out of a 60/40 AA
Replies: 76
Views: 9024

Re: Talk me out of a 60/40 AA

Talk you out of it? I'll talk you into it! IMHO it's the ultimate SWAN portfolio for all people at all ages. Im 60/40 and I'm 53 and my wife is 57. My wife shows no interest at all in investing. After thinking about it for 20 plus years, upon retirement, I plan to put it all in the Vanguard Balance...
by dharrythomas
Tue Jan 02, 2018 2:16 pm
Forum: Investing - Help with Personal Investments
Topic: VFFVX Vanguard Target Retirement 2055 Fund Investor Shares
Replies: 6
Views: 479

Re: VFFVX Vanguard Target Retirement 2055 Fund Investor Shares

Are these the funds that the VFFVX is composed of? 1 Vanguard Total Stock Market Index Fund Investor Shares 54.5% 2 Vanguard Total International Stock Index Fund Investor Shares 35.5% 3 Vanguard Total Bond Market II Index Fund Investor Shares* 7.0% 4 Vanguard Total International Bond Index Fund Inv...
by dharrythomas
Tue Jan 02, 2018 2:00 pm
Forum: Investing - Help with Personal Investments
Topic: VFFVX Vanguard Target Retirement 2055 Fund Investor Shares
Replies: 6
Views: 479

Re: VFFVX Vanguard Target Retirement 2055 Fund Investor Shares

livesoft wrote:
Tue Jan 02, 2018 1:48 pm
This fund is more than great for a Roth IRA for a 26-year old at the present time. No one can predict what the "best fund" was until they have the power of hindsight in 5, 10, 15, 20, ... years.
+1
by dharrythomas
Tue Jan 02, 2018 1:24 pm
Forum: Investing - Help with Personal Investments
Topic: 401k Contribution - New Job
Replies: 3
Views: 379

Re: 401k Contribution - New Job

Most of us who have been around for awhile, have at least some money in a taxable account. When I was getting started, the IRA limit was $2,000.

One option might be to increase the contribution to your accounts, if you're not already at the max.

Taxable is not bad.
by dharrythomas
Tue Jan 02, 2018 1:17 pm
Forum: Investing - Help with Personal Investments
Topic: Opted into the new military retirement system/BRS
Replies: 57
Views: 4810

Re: Opted into the new military retirement system/BRS

MilitaryDoc, The matching goes into traditional. You don't gets deduction because it's not taxed until you withdraw it. Then it will be taxed. I'm a GS civilian, using the Roth TSP. I like the blended retirement system, not for what it does for folks that become military retirees but because it prov...
by dharrythomas
Tue Jan 02, 2018 12:35 pm
Forum: Investing - Theory, News & General
Topic: Paying off mortgage before investing at all?
Replies: 75
Views: 8254

Re: Paying off mortgage before investing at all?

I am extremely anti debt, I don't like the risk.

I would never recommend that someone pay off long term debt at the cost of missing matching funds or having no liquid assets.
by dharrythomas
Sat Dec 30, 2017 9:13 pm
Forum: Investing - Help with Personal Investments
Topic: Roth Conversion - Break Even Calculation - How do you do it?
Replies: 27
Views: 2283

Re: Roth Conversion - Break Even Calculation -

I don't think there is one simple formula. Most assume that you"'ll withdraw from the Roth on a similar basis as the traditional account. Is it big enough to change the tax status of SS? Will you need RMDs or will this be passed to heirs? If you can defer RMDs and plan to pass the account to heirs, ...
by dharrythomas
Fri Dec 29, 2017 12:04 pm
Forum: Investing - Help with Personal Investments
Topic: Maxing out retirement accounts
Replies: 55
Views: 4488

Re: Maxing out retirement accounts

Just curious how many of you maxed out retirement accounts when you first began investing. I feel like it’s just not realistic when you first begin with all the bills, loans, and short/ midterm goals. I suppose each year my income increases more will go toward those retirement accounts. Let me know...
by dharrythomas
Wed Dec 27, 2017 1:04 pm
Forum: Investing - Help with Personal Investments
Topic: Wife's Windfall/Inheritance/Retirement/Merrill Lynch
Replies: 37
Views: 5055

Re: Wife's Windfall/Inheritance/Retirement/Merrill Lynch

First, welcome. Second, I'm reading between the lines a little, so if it doesn't apply ignore it. What strikes me is that y'all were doing OK and saving a little money and then you got a windfall. It looks like the inheritance is significantly more than you were going to accumulate. You were not goi...
by dharrythomas
Mon Dec 25, 2017 10:46 am
Forum: Investing - Help with Personal Investments
Topic: Late 30s, I think I’m doing everything right but would like a once-over
Replies: 14
Views: 2677

Re: Late 30s, I think I’m doing everything right but would like a once-over

You're fine. Saving $70K per year will set you up. You'll be far ahead of most people, you are already far ahead of most people. You could simplify the number of accounts, the redundancy probably hurts returns somewhat. The only question is what is either your savings goal or your anticipated retire...
by dharrythomas
Mon Dec 25, 2017 10:26 am
Forum: Local Chapters and Bogleheads Community
Topic: My Christmas Present to You
Replies: 90
Views: 8998

Re: My Christmas Present to You

Taylor,

Thank you, Merry Christmas, and God Bless.
by dharrythomas
Sat Dec 23, 2017 6:30 pm
Forum: Investing - Theory, News & General
Topic: "The Most Important Investment Decision You'll Ever Make"
Replies: 16
Views: 3971

Re: "The Most Important Investment Decision You'll Ever Make"

Kitty, The is not a bond bubble, that implies speculation. What we have is low interest rates. Falling interest rates have added to the return on bonds since the Volker FED broke inflation in the early 1980s. As interest rates move back up to a more normal level, this will lower the return on bonds....
by dharrythomas
Sat Dec 23, 2017 6:16 pm
Forum: Investing - Theory, News & General
Topic: Who missed out on maximizing 401k?
Replies: 62
Views: 6148

Re: Who missed out on maximizing 401k?

I've never maxed out a 401(k) or TSP. I came close a couple times after the Army Reserve was allowed into the TSP. But we paid off the house early and now all of my TSP contributions are Roth, so I guess I might be contributing more than an equivalent pre-tax match. But since I've retired from the R...
by dharrythomas
Sat Dec 23, 2017 10:33 am
Forum: Investing - Theory, News & General
Topic: Any Target Date Funds better than Vanguard?
Replies: 46
Views: 5331

Re: Any Target Date Funds better than Vanguard?

The TSP might be better, if you have access. For the same date find you get lower expenses, lowere stock percentage, and less international. Like livesoft, I don't think there is another commerical firm that is anywhere near as good.
by dharrythomas
Mon Dec 18, 2017 10:10 pm
Forum: Investing - Help with Personal Investments
Topic: When to move into bonds
Replies: 53
Views: 5733

Re: When to move into bonds

Ben Graham would have recommended you make the move a long time ago. He said that the default position should be 50/50 and that everyone should be somewhere between 75/25 and 25/75. We just all think we know better. +1 Old Ben was a wise man. He also was a strong advocate of stock picking too. It s...