Search found 698 matches

by dharrythomas
Sun Dec 04, 2016 12:05 am
Forum: Investing - Theory, News & General
Topic: Rick Ferri's reason to avoid International Bonds
Replies: 7
Views: 1177

Re: Rick Ferri's reason to avoid International Bonds

We own them in Target Retirement and LifeStrategy funds. I think the diversification benefit is not worth the cost and trouble, so I wouldn't bother with it in an individual fund. But it doesn't bother me enough to avoid the fund of funds in tax-free/deferred accounts.

Good luck.
by dharrythomas
Sat Dec 03, 2016 11:58 pm
Forum: Investing - Theory, News & General
Topic: Military Pension (Or any pension) - Roth vs. Traditional for 401K
Replies: 21
Views: 2255

Re: Military Pension (Or any pension) - Roth vs. Traditional for 401K

I'll have a Reserve pension in 5 years and a federal civilian pension when I retire. I started investing in IRAs in 1984, switched to Roth IRAs when they became available and contributed some to 401(K) and TSP. Since the Roth TSP has been available, I've used it and now put everything in the Roth. M...
by dharrythomas
Sat Dec 03, 2016 11:17 am
Forum: Investing - Theory, News & General
Topic: I'm A Lapsed Indexer. Is Value Investing Better?
Replies: 23
Views: 3121

Re: I'm A Lapsed Indexer. Is Value Investing Better?

Park, The Bogle interview is a good article. Thanks, I went back and read it again. The paragraph before the quote you extracted, Mr Bogle said that if you could control the behavioral aspects, 3 to 1 leverage would be better. He didn't recommend that either. Mr Bogle recognizes the theoretical and ...
by dharrythomas
Sat Dec 03, 2016 10:24 am
Forum: Investing - Help with Personal Investments
Topic: Reading journey - where to next?
Replies: 15
Views: 1041

Re: Reading journey - where to next?

Livesoft is right. Most of us would have been better off in a single Target Retirement fund from the start. Tweaking your asset allocation as the latest fad on factors change is the opposite of staying the course. The more I learned, the more I was tempted to tweak it and add stuff. I finally simpli...
by dharrythomas
Fri Dec 02, 2016 2:13 pm
Forum: Investing - Help with Personal Investments
Topic: Pay off mortgage?
Replies: 107
Views: 6674

Re: Pay off mortgage?

We paid ours off early and don't regret it. We increased savings by about 50%. Then we backed off some as I realized that we're on track. When Warren Buffett moved back to Omaha in the 1950s, he paid cash for his house (about 1/6 of his net worth)--I'm pretty sure I have no business taking more risk...
by dharrythomas
Fri Dec 02, 2016 1:32 pm
Forum: Investing - Theory, News & General
Topic: I'm calling a bond bottom.
Replies: 30
Views: 5749

Re: I'm calling a bond bottom.

My crystal ball is cloudy. When we bought our second house in 1999, we borrowed at 7% and I never thought rates would get lower. I don't see far enough into the future to predict interest rates between market forces, government interference, and geopolitical shocks. My forecasting is cloudy in other...
by dharrythomas
Fri Dec 02, 2016 1:18 pm
Forum: Investing - Theory, News & General
Topic: I'm A Lapsed Indexer. Is Value Investing Better?
Replies: 23
Views: 3121

Re: I'm A Lapsed Indexer. Is Value Investing Better?

One good reason a value investor should have fixed income is that Benjamin Graham (the father of value investing) in "The Intelligent Investor" states that 50:50 should be the baseline for all investors and that everyone should be between 75:25 and 25:75 no matter how conservative or enter...
by dharrythomas
Fri Dec 02, 2016 9:55 am
Forum: Investing - Theory, News & General
Topic: Warren Buffett Books
Replies: 22
Views: 1697

Re: Warren Buffett Books

Snowball was an excellent read. Being an authorized biography, there were some personal details there that would be lacking elsewhere and some background on business ideas that I haven't seen elsewhere. While there is no explicit language, the book deals with his family issues. I'd recommend everyth...
by dharrythomas
Fri Nov 11, 2016 10:50 pm
Forum: Investing - Help with Personal Investments
Topic: To ROTH or Not To ROTH...That Is The Question.
Replies: 15
Views: 1558

Re: To ROTH or Not To ROTH...That Is The Question.

The tax rate calculation is an incomplete analysis. One advantage to a Roth is the ability to not have required distributions. If you want to leave money to heirs, Roth is the way to go. On the other hand, if you want to make charatible contributions, a traditional account would be better. Then ther...
by dharrythomas
Fri Nov 11, 2016 2:20 pm
Forum: Investing - Theory, News & General
Topic: "Stealth Wealth: I’m Just an Ordinary Average Guy"
Replies: 204
Views: 25559

Re: "Stealth Wealth: I’m Just an Ordinary Average Guy"

Neither a physician nor earning a physician like income. Just living below my means. I don't know that I'd define us as wealthy or furgal, we're above average but far from PAWs (The Millionaire Next Door). I'm only saving 15% in my Roth TSP plus moving taxable investments into Roth IRAs. Our house i...
by dharrythomas
Sun Oct 30, 2016 1:19 pm
Forum: Investing - Theory, News & General
Topic: Extracting Roth TSP balance
Replies: 4
Views: 462

Re: Extracting Roth TSP balance

Once you have a civilian job, it is easy. Even if you had money in a Traditional IRA, you can roll it all into the TSP. That would drive your Traditional IRA balance to zero.
by dharrythomas
Sun Oct 30, 2016 1:12 pm
Forum: Investing - Theory, News & General
Topic: Warren Buffett(himself) has never invested in an Index fund, WHY?
Replies: 32
Views: 3953

Re: Warren Buffett(himself) has never invested in an Index fund, WHY?

Warren Buffett, if what was written about his taxes is true, has more money than most of us are ever going to have invested outside of Berkshire. I read his reported income was $11M last year and his salary is $100K. Berkshire was one of the companies his investment partnership bought in the 1960s. ...
by dharrythomas
Sun Oct 09, 2016 3:06 pm
Forum: Personal Finance (Not Investing)
Topic: Crossing the line (becoming a miser)
Replies: 71
Views: 9184

Re: Crossing the line (becoming a miser)

This is an issue of values and priorities. If you want to ensure that you don't become a miser, set up a systematic giving program the same way you have a systematic saving and investing program. I'd recommend a charity or religious institution instead of giving to the endowment of an educational in...
by dharrythomas
Sat Oct 08, 2016 8:03 pm
Forum: Investing - Theory, News & General
Topic: John Bogle the Toyota of investing
Replies: 12
Views: 1669

Re: John Bogle the Toyota of investing

Then what is the rationale of taking the funds away from Wellington Management? What he'd have been asking was for the board to take the funds from Wellington and give them to him. I understand the votes were close the way he did it. I love what happened and the results, but there is a reason it has...
by dharrythomas
Sat Oct 01, 2016 10:20 pm
Forum: Investing - Theory, News & General
Topic: If you own Vanguard Total Stock Market, do you re-invest dividends?
Replies: 75
Views: 9290

Re: If you own Vanguard Total Stock Market, do you re-invest dividends?

We reinvest. We spent years periodically investing in taxable so already have a large number of tax lots. Hope never to sell again except maybe to fund Roth IRA for us or 529 plan for grandkids.
by dharrythomas
Mon Sep 26, 2016 8:00 am
Forum: Investing - Help with Personal Investments
Topic: Track asset allocation with TSP
Replies: 16
Views: 1290

Re: Track asset allocation with TSP

I've had a TSP account for years and I don't know of any way to do this. For all its benefits, the TSP does not work and play well with others. If you want to do the things that fit in the standard pattern, it's great, otherwise not so user friendly.

Good luck
by dharrythomas
Sat Sep 17, 2016 7:42 pm
Forum: Investing - Theory, News & General
Topic: The coming municipal bond crisis
Replies: 51
Views: 7625

Re: The coming municipal bond crisis

I'm not sure what having this issue priced in has to do with holding Total Bond. Total Bond does not hold municipal bonds.
by dharrythomas
Thu Sep 15, 2016 8:18 pm
Forum: Investing - Theory, News & General
Topic: Percent of DIY Assets?
Replies: 3
Views: 714

Re: Percent of DIY Assets?

In addition how would you allocate our funds? My TSP is in a LifeCycle Fund. My Traditional IRA is in a Target Retirement Fund. My wife's IRA and both of our Roths are in LifeStrategy Funds. But, I set it all up myself to include the taxable portion. So am I all DIY or am I using an advisor if I'm l...
by dharrythomas
Mon Sep 12, 2016 2:29 pm
Forum: Investing - Theory, News & General
Topic: Do Bogleheads Budget?
Replies: 104
Views: 12736

Re: Do Bogleheads Budget?

I don't think you can call what we do budgeting. We take saving/investing and tithes/contributions off the top and as long as the wife is paying cash as we go, I don't pay any attention to the rest. :oops: The again I don't make as much as many of the folks here and never could figure out how to liv...
by dharrythomas
Fri Sep 02, 2016 7:12 pm
Forum: Investing - Help with Personal Investments
Topic: Got [a bad deal] on muni bonds
Replies: 66
Views: 5734

Re: Got [a bad deal] on muni bonds

I am NOT recommending the purchase of individual bonds, municipal or otherwise, and I don't deal with brokers, but paying more than the face value of a bond does not mean you got ripped off. Most of the time, both individuals and funds pay other than face value for bonds. Bonds pay a dividend that r...
by dharrythomas
Wed Aug 31, 2016 9:10 pm
Forum: Investing - Theory, News & General
Topic: How to give unsolicited advice
Replies: 54
Views: 3660

Re: How to give unsolicited advice

Generally don't.

I don't convince many people even if they have some interest. I'm pretty sure that my wife just humors me. The only ones that I think I sold on my debt is dangerous, save and invest mantra are my two daughters.
by dharrythomas
Sun Aug 28, 2016 1:34 pm
Forum: Investing - Theory, News & General
Topic: "How to Tell if Your Retirement Nest Egg Is Big Enough"
Replies: 61
Views: 13711

Re: "How to Tell if Your Retirement Nest Egg Is Big Enough"

Thanks for posting, how does this article pertain if you have not yet won the game? For example: 50 years old (with 10-15 years from retirement - flexible) and maybe 50-60% of what I'd like to have at retirement? Rai, If you've got 50-60% of what you need, are 10-15 years out, and are consistently ...
by dharrythomas
Sat Aug 27, 2016 11:28 am
Forum: Investing - Theory, News & General
Topic: Looking ahead to 2030.
Replies: 11
Views: 1656

Re: Looking ahead to 2030.

So what? It matters, but there is no way to know and nothing you can do about it. Unless everything collapses, you'll be better off investing than if you don't. If it does, Jared Diamond in Collaspe found that while everyone starved in Greenland, the rich starved last, so you'll have that going for ...
by dharrythomas
Sat Aug 27, 2016 9:57 am
Forum: Investing - Theory, News & General
Topic: glide path vs. fixed asset allocation [POLL]
Replies: 50
Views: 4288

Re: glide path vs. fixed asset allocation [POLL]

Glide Path, though it's hard to argue with fixed allocation except that your value at risk can get very high. We talk in percentages but feel the lose in absolute dollar terms. With interest rates at current levels, it's hard for me to view bonds as low risk, at least the risk is different, related ...
by dharrythomas
Fri Aug 26, 2016 8:52 am
Forum: Investing - Theory, News & General
Topic: "Build Your Own Lazy Portfolio"
Replies: 4
Views: 1045

Re: "Build Your Own Lazy Portfolio"

Taylor,

Thanks for posting.

Harry
by dharrythomas
Mon Aug 22, 2016 6:40 pm
Forum: Investing - Help with Personal Investments
Topic: Debt Free - Now What
Replies: 37
Views: 3657

Re: Debt Free - Now What

Consider the Roth option in the TSP. Tax wise, it is better than taxable investing. You can always pull out the contributions without penalty (I don't recommend it). I also think there is no better or cheaper retirement plan in existence than the TSP, and I've been in several with several leading fi...
by dharrythomas
Mon Aug 22, 2016 6:31 pm
Forum: Investing - Help with Personal Investments
Topic: How do you view debt?
Replies: 108
Views: 6927

Re: How do you view debt?

Solomon said it best thousands of years ago: The borrower is servant to the lender. Proverbs 22:7 Read and understand "The Richest Man in Babylon" Debt is dangerous and excessive spening will get you in trouble. You are paying more for your purchases in order to enjoy them sooner. For most...
by dharrythomas
Sat Aug 20, 2016 4:56 pm
Forum: Investing - Help with Personal Investments
Topic: Am I devastatingly far behind on retirement savings and how can I catch up?!
Replies: 40
Views: 6458

Re: Am I devastatingly far behind on retirement savings and how can I catch up?!

You're set up fine for 29! If you and your spouse set up to save 15% of your income in 401(k)s, get a reasonable house and pay it off (transaction costs on real estate are a killer), pay cash for cars, pay cash for vacations, and set aside some for Roth IRAs, stay married (nothing burns up money lik...
by dharrythomas
Sat Aug 20, 2016 2:31 pm
Forum: Investing - Theory, News & General
Topic: John Bogle says it is ok to just hold US stock index and Bond index, no international stocks
Replies: 45
Views: 5396

Re: John Bogle says it is ok to just hold US stock index and Bond index, no international stocks

The way I understand Bogle's position is that over the long-term returns are similar so why take risk. Others see benefit in various time periods. I think there are three possible answers over your investment lifespan, unfortunately you only get the answer at the end of the game and you don't have a...
by dharrythomas
Fri Aug 19, 2016 9:07 pm
Forum: Investing - Theory, News & General
Topic: High RMD’s, would you do anything different?
Replies: 54
Views: 5464

Re: High RMD’s, would you do anything different?

I've accumulated less than you, but I'm making all contributions to Roth accounts. That tax free compounding is worth more than a taxable account. Next year, I'll be selling stuff from our taxable accounts in order to fund Roth IRAs. If you've got a Roth 401(k), use that and roll over to an IRA to a...
by dharrythomas
Sun Aug 07, 2016 2:43 pm
Forum: Investing - Theory, News & General
Topic: International Bond Debate
Replies: 16
Views: 1412

Re: International Bond Debate

We have international bonds inside Target Retirement and LifeStrategy Funds. The small allocation doesn't bother me, but considering the additional cost of the currency hedge I wouldn't go to the trouble to add the fund independently.
by dharrythomas
Sun Aug 07, 2016 1:43 pm
Forum: Investing - Theory, News & General
Topic: Avoid International?
Replies: 103
Views: 9731

Re: Avoid International?

Disclaimer: We do invest in international, using Target Retirement in Traditional IRAs, LifeStrategy in Roth IRAs, Total World Stock Imdex in Taxable, and LifeCycle Funds in the TSP. We also own some Tax-Managed Balanced and a few domestic odds and ends in addition to our house. The way I understand...
by dharrythomas
Sat Aug 06, 2016 9:12 pm
Forum: Investing - Theory, News & General
Topic: Dave Ramsey over simplifying Roth vs. Traditional IRA?
Replies: 52
Views: 4998

Re: Dave Ramsey over simplifying Roth vs. Traditional IRA?

Biggest advantage of the Roth IRA is no MRDs. That allows you to extend the benefits by leaving money in the accounts. It is a particularly big advantage if you want to leave money to heirs instead of spend it in retirement. If you want to use it to fund contributions, traditional is probably best. ...
by dharrythomas
Wed Aug 03, 2016 9:14 pm
Forum: Investing - Help with Personal Investments
Topic: Do I need small and mid cap?
Replies: 11
Views: 1003

Re: Do I need small and mid cap?

Warren Buffett would say no. Jack Bogle would say yes. Neither thinks you need international. We have both international and small caps (in total market). The theory is that it is better to have both. Results are dependent on the time period involved. Most of the time, it hasn't made a huge differen...
by dharrythomas
Sat Jul 30, 2016 6:59 pm
Forum: Investing - Help with Personal Investments
Topic: Super Saver Close to Distribution Phase and Seeks Collective Wisdom/Advice
Replies: 21
Views: 1987

Re: Super Saver Close to Distribution Phase and Seeks Collective Wisdom/Advice

I second livesoft! Quit saving now. Spend your income. Retire not later than 62. Do whatever you want to about SS. Do what you want to about converting the IRA to a Roth. If the intent is to leave that account to charity, you might avoid some taxes altogether by leaving it alone. Based on current sp...
by dharrythomas
Sun Jul 24, 2016 6:09 pm
Forum: Investing - Theory, News & General
Topic: Declining or Rising equity allocation in retirement?
Replies: 110
Views: 7702

Re: Declining or Rising equity allocation in retirement?

Larry, Thank you. I appreciate the knowledge you've shared. I also appreciate that you're sharing a great deal of information for free and that it is not just an infomercial. There are several writers from BAM that have added a great deal to my understanding of markets, retirement planning, and the ...
by dharrythomas
Sun Jul 24, 2016 4:55 pm
Forum: Investing - Theory, News & General
Topic: If everyone saved enough for retirement, wouldn't there just be inflation?
Replies: 38
Views: 4529

Re: If everyone saved enough for retirement, wouldn't there just be inflation?

It's possible (at least in theory) for everyone to save enough for retirement. Where you do run into problems is when your population ceases to grow. Because you do need enough people in the workforce to both produce and take care of the young and the old. Without population and economic growth, it ...
by dharrythomas
Sat Jul 23, 2016 2:53 pm
Forum: Personal Finance (Not Investing)
Topic: How many folks choose to give inheritance to their children in unequal portions?
Replies: 193
Views: 17596

Re: How many folks choose to give inheritance to their children in unequal portions?

You often find out what people value by watching them divy up the spoils after the funeral. Frankly, whoever owns it has the right to determine the distribution and there is no wrong distribution just small beneficiaries. Rather than resentment, try to give the benefit of the doubt that the decease...
by dharrythomas
Sun Jun 19, 2016 2:41 pm
Forum: Investing - Help with Personal Investments
Topic: Advice on house situation
Replies: 21
Views: 2022

Re: Advice on house situation

We got stuck for awhile years ago because we had no equity. Either you'll pay a firm to manage it for you or you'll have a part time job where you don't set the hours. Some people do well with it. I don't want 2 mortgages. We bought our current house from a tax lawyer in a short sell. Problems with ...
by dharrythomas
Sun Jun 19, 2016 2:29 pm
Forum: Investing - Help with Personal Investments
Topic: When to exit cash and embark upon Target Retirement Fund "set it and forget" strategy
Replies: 32
Views: 3268

Re: When to exit cash and embark upon Target Retirement Fund "set it and forget" strategy

Had I waited for a what was a good valuation to buy into the market, I'd still be waiting (30 years later). Interest rates kept going down (much further and longer than I thought possible) and stock prices went up. My mother more than doubled her money in tax free bonds, but in the S&P 500 she'd...
by dharrythomas
Sat Jun 11, 2016 8:23 pm
Forum: Investing - Help with Personal Investments
Topic: ROTH IRA advice
Replies: 8
Views: 1045

Re: ROTH IRA advice

1. Good luck on 8%. Most experts that I've read think that with bond yields low and set to rise and stock P/E ratios where they are the expected return over the next decade is less than that. You may have to take more risk to make it happen. 2. Ruralavalon is right. You need to think through all tho...
by dharrythomas
Sun May 29, 2016 3:31 pm
Forum: Investing - Help with Personal Investments
Topic: Investing when you have an estranged spouse
Replies: 274
Views: 17059

Re: Investing when you have an estranged spouse

I would not sign a joint return without visibility of my partners assets and income. Too much risk.

Other than that, I have nothing constructive to add.

God bless you and your children.

Harry
by dharrythomas
Sat May 28, 2016 2:29 pm
Forum: Investing - Help with Personal Investments
Topic: Question about Roth.
Replies: 19
Views: 756

Re: Question about Roth.

Depends on personal circumstances, how much SS you expect, how much outside income you expect, exactly how big your MRDs are, etc. A Roth may be beneficial if you plan to pass the account to heirs. If the intent is to draw it down while you are alive or if you intend to leave it to charity where the...
by dharrythomas
Sat May 28, 2016 2:19 pm
Forum: Investing - Help with Personal Investments
Topic: Roth IRA Investment Question
Replies: 4
Views: 454

Re: Roth IRA Investment Question

Put you Roth in either a LifeStrategy (probably Growth at your age) or a Target Retirement Fund. Have your soon to be do the same. Save 15% of your incomes between the accounts. Be wary of personal debt. Stay married (nothing burns up money like divorce). Beyond that, live and enjoy your life. Many ...
by dharrythomas
Sat May 28, 2016 2:11 pm
Forum: Investing - Help with Personal Investments
Topic: Any advice would be so helpful
Replies: 7
Views: 1157

Re: Any advice would be so helpful

If you have access to the Fidelity Freedom Index Funds, I'd use them.

Since you have money "sitting around", I'd recommend opening a second Roth IRA for your spouse.

Harry
by dharrythomas
Sat May 28, 2016 2:05 pm
Forum: Investing - Help with Personal Investments
Topic: Joint ownership of stock vs. inheritance
Replies: 8
Views: 643

Re: Joint ownership of stock vs. inheritance

Kath, 1. I am neither a CPA nor an attorney. 2. From a tax perspective, there is not a step up in basis for gifts. My parents bought a small amount of stock in a start-up bank for $10 a share in 2000. They titled it joint between my mother and a separate block of stock for each son. When my mother d...
by dharrythomas
Mon May 02, 2016 8:20 pm
Forum: Investing - Theory, News & General
Topic: LifeStrategy Moderate Growth fund or its components?
Replies: 33
Views: 3250

Re: LifeStrategy Moderate Growth fund or its components?

Kelly, It will be close. There are two factors that will make it a little different. 1) If you have enough for Admiral shares, LifeStrategy funds are a little more expensive. 2) LifeStrategy Funds are rebalanced continuously as new money flows into the fund, while you would rebalance periodically or...
by dharrythomas
Mon May 02, 2016 6:59 pm
Forum: Investing - Help with Personal Investments
Topic: Move after-tax Traditional IRA contribution to Roth
Replies: 10
Views: 1315

Re: Move after-tax Traditional IRA contribution to Roth

You should check with a tax professional. I think you are too late to recharacterize last year's traditional contribution. Have you filed your tax return?

Retiredjg is correct that any money you move from Traditional to Roth has to be prorated.

Good luck.
by dharrythomas
Sun Apr 24, 2016 1:23 pm
Forum: Investing - Help with Personal Investments
Topic: Million? [Will I get there]
Replies: 41
Views: 5830

Re: Million? [Will I get there]

Thanks for all the replys. Yes, I have already won. That number is larger than my annual income.(just barely) Thanks for the reassuring words. Let's backup and start over. What number is barely larger than your annual income? If you're making $500K a year and want to retire at 56, $500K in your 401...
by dharrythomas
Sun Apr 24, 2016 12:43 pm
Forum: Investing - Theory, News & General
Topic: Mohnish Pabrai launches ETF channeling Charlie Munger
Replies: 24
Views: 3980

Re: Mohnish Pabrai launches ETF channeling Charlie Munger

My assumption is that Munger thinks buy backs are good even though the comment about eating themselves sounds negative. I have no other basis than that IBM is a big Berkshire Hathaway holding? I don't know what to think this issue cuts both ways. I've read "The Outsiders" and I've also see...

Go to advanced search