Search found 664 matches

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: 9
Views: 617

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: 6791

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: 32
Views: 3218

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: 185
Views: 14580

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: 1922

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: 3119

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: 940

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: 15830

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: 687

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: 421

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: 1106

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: 589

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: 3063

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: 1267

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: 5654

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: 3521

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...
by dharrythomas
Sun Apr 24, 2016 12:00 pm
Forum: Investing - Theory, News & General
Topic: Does Knowledge of Fellow Employees’ Retirement Contributions Encourage Greater Participation?
Replies: 6
Views: 698

Re: Does Knowledge of Fellow Employees’ Retirement Contributions Encourage Greater Participation?

People are contributing what to the people on this board is a shockingly low amount. In most organizations, people only contribute to the match. A look at the Federal Reserves Survey of Consumer Finances will allow you to benchmark for the country as a whole. I read the other day that only 8% of peo...
by dharrythomas
Sat Apr 23, 2016 8:51 pm
Forum: Investing - Theory, News & General
Topic: Social Security with older spouse using spousal benefits
Replies: 3
Views: 429

Re: Social Security with older spouse using spousal benefits

Thanks. I haven't looked at the numbers recently, but 1/2 of my benefit at 62 is at least double what her benefit will be. I told her not to file until 66 (FRA), since at FRA her spousal benefit is maxed out. So the limited increase by waiting until 70 would not pay off, but any early draw would be ...
by dharrythomas
Sat Apr 23, 2016 3:23 pm
Forum: Investing - Theory, News & General
Topic: Social Security with older spouse using spousal benefits
Replies: 3
Views: 429

Social Security with older spouse using spousal benefits

I'm trying to figure out the smart play here and I do acknowledge that these questions are only problems for people who have been blessed with an abundance. If we were in need, the answer is easy. DW is 9 years older. She worked enough to qualify for SS but only about 15 years and didn't make a grea...
by dharrythomas
Sat Apr 23, 2016 2:17 pm
Forum: Investing - Theory, News & General
Topic: A different look at the Shiller CAPE 10
Replies: 29
Views: 2881

Re: A different look at the Shiller CAPE 10

I always just assumed Shiller used 10 years because he adapted the formula that Ben Graham developed to adjust for inflation and aggregate for the entire market. I never thought he had anything more as a basis for his time period. Of course, "Ben Graham did it that way" is a pretty good ju...
by dharrythomas
Sat Apr 23, 2016 11:12 am
Forum: Investing - Theory, News & General
Topic: "The Index Card"
Replies: 19
Views: 3108

Re: "The Index Card"

Taylor,

Thank you.

Harry
by dharrythomas
Sat Apr 23, 2016 11:10 am
Forum: Investing - Theory, News & General
Topic: Every DFA fund (ex-S&P 500) has underperformed the S&P 500 for the past decade
Replies: 101
Views: 8240

Re: Every DFA fund (ex-S&P 500) has underperformed the S&P 500 for the past decade

It's possible, markets have turned upside down before. At one point, the dividend yield on stocks had a long history of being higher than the bond yield. People are slow to react at the inflection points. I'd have never thought that bond yields could stay this low for this long. The more I understan...
by dharrythomas
Sat Apr 16, 2016 6:11 am
Forum: Investing - Theory, News & General
Topic: Whole Life vs. Bonds - what am I missing? help please
Replies: 11
Views: 1643

Re: Whole Life vs. Bonds - what am I missing? help please

Even when you are quoted a yield, it is on the cash value and before contract charges and cost of insurance. The guaranteed yield on an insurance policy is generally much lower than the estimated yield. I knew this going in and bought UL in 1988 (I understood the product and the sales pitch, I did n...
by dharrythomas
Sat Apr 16, 2016 5:49 am
Forum: Investing - Theory, News & General
Topic: What are Pros and Cons to the "Four Hour Workweek?"
Replies: 99
Views: 11900

Re: What are Pros and Cons to the "Four Hour Workweek?"

My father was a CPA with his own practice in as small town so I knew many businessmen growing up. Some made a great deal of money and some barely survived. Between my father's business and the Army Reserve, he came home to eat and sleep. His successful clients were working more than 60 hours a week ...
by dharrythomas
Sun Mar 27, 2016 7:28 pm
Forum: Investing - Help with Personal Investments
Topic: Does anyone think the stock market is overvalued?
Replies: 50
Views: 4464

Re: Does anyone think the stock market is overvalued?

I've thought the market was overvalued for most of the last 32 years. :oops: We've been involved in regular stock investing through mutual funds for the last 29 years. If you try to time the market, you'll probably guess wrong. If you stay out now, when do you get back in? The markets have never com...
by dharrythomas
Sun Mar 27, 2016 7:12 pm
Forum: Investing - Theory, News & General
Topic: What to do with Roth IRA (Unique Circumstance)
Replies: 17
Views: 1473

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

The TSP does have a Roth option.
by dharrythomas
Wed Feb 17, 2016 9:20 pm
Forum: Investing - Theory, News & General
Topic: "The Index Mutual Fund: 40 Years of Growth, Change and Challange" by Jack Bogle
Replies: 12
Views: 2162

Re: "The Index Mutual Fund: 40 Years of Growth, Change and Challange" by Jack Bogle

Taylor,

Thanks! Everything Mr. Bogle has written is worth reading. Most is worth rereading until you agree with it.

Harry
by dharrythomas
Sun Feb 07, 2016 3:19 pm
Forum: Investing - Theory, News & General
Topic: Hold International Funds in Roth IRA or Taxable Account?
Replies: 12
Views: 1040

Re: Hold International Funds in Roth IRA or Taxable Account?

For what it is worth, I have some international in taxable, some in Traditional IRA/TSP and some in Roth IRA/TSP. I didn't do detailed calculations, I just spread stuff around.

Harry
by dharrythomas
Sun Feb 07, 2016 3:12 pm
Forum: Personal Finance (Not Investing)
Topic: Vacation Homes
Replies: 78
Views: 10207

Re: Vacation Homes

TC101, It may not be an awful decision all things considered. I know several people that love their second homes and even people that like their timeshares. From a financial perspective, you are 100% correct. A 2d home is an awful investment. Your first home is anawful "investment", but yo...
by dharrythomas
Sun Jan 31, 2016 3:28 pm
Forum: Investing - Help with Personal Investments
Topic: VG International Bond Index Fund?
Replies: 11
Views: 988

Re: VG International Bond Index Fund?

My perception is that any diversification benefit is swallowed up by the hedging costs in fixed income.

It doesn't concern me enough to avoid Target Retirement and LifeStrategy Funds. But if you're doing it yourself, why bother?

Good Luck.

Harry
by dharrythomas
Sat Jan 30, 2016 6:37 pm
Forum: Investing - Help with Personal Investments
Topic: Life Strategy Growth VASGX & Target Retirement 2035 VTTHX for IRA's
Replies: 11
Views: 2025

Re: Vanguard Lifestrategy vs Target Fund

I use both types, but unlike the conventional wisdom here, I sometimes think of them as separate portfolios or buckets. Where possible (it is not possible to segregate in the TSP), I use Target Date funds for our traditional accounts and LifeStrategy or other balanced fixed allocation funds in our R...
by dharrythomas
Fri Jan 29, 2016 5:28 pm
Forum: Investing - Theory, News & General
Topic: "Why Simple Is Still a Hard Sell"
Replies: 24
Views: 4940

Re: "Why Simple Is Still a Hard Sell"

Taylor, Thanks. I play around at the margins (mostly REITs and Value ) but honestly think I'd have been better off not to. I know that Wellington did better that I did in my Roth, I'm not sure about LifeStrategy Moderate Growth. At least we've got our traditional accounts locked into Target Date Fun...
by dharrythomas
Fri Jan 29, 2016 5:05 pm
Forum: Investing - Theory, News & General
Topic: Why doesn't Vanguard stay the course?
Replies: 44
Views: 6198

Re: Why doesn't Vanguard stay the course?

Sawhorse, The S&P 500 is not necessarily the 500 largest companies in the US. The S&P 500 is a set of large companies selected by Committee. They are supposed to be representative of the economy and market. It has been generally representative of the market but the changes in the makeup of t...
by dharrythomas
Fri Jan 22, 2016 8:04 pm
Forum: Investing - Help with Personal Investments
Topic: who is buying or selling ??
Replies: 27
Views: 2245

Re: who is buying or selling ??

I funded Roth IRAs this week, because I got our annual statements with the investment stubs last week. Putting money in the Roth TSP every 2 weeks, and small contributions into Total World Stock Index in taxable twice a month. I guess we're always buying. A wise man said, "Stay the course!"
by dharrythomas
Sun Dec 27, 2015 2:26 pm
Forum: Investing - Help with Personal Investments
Topic: Taxation & RMDs in kind, individual secondary bonds
Replies: 11
Views: 864

Re: Taxation & RMDs in kind, individual secondary bonds

(Note: I'm neither a CPA nor a tax lawyer nor do I have personal experience with this issue) Don't overthink this. Other than the date of interest payments, for tax purposes, it should not make any difference what bonds you pick or their purchase price. The organization holding your IRA should distr...
by dharrythomas
Fri Dec 25, 2015 9:30 pm
Forum: Investing - Help with Personal Investments
Topic: Seeking reassurance about Life-only pension choice
Replies: 16
Views: 1952

Re: Seeking reassurance about Life-only pension choice

There are enough things outside my control that I'd always take the survivor option. I've done it once and will do it again when I retire again. I say that even though we've got enough that we've canceled our life insurance policies.

Good luck whatever you decide.
by dharrythomas
Fri Dec 25, 2015 3:13 pm
Forum: Investing - Theory, News & General
Topic: Experts that DON'T believe in value stocks
Replies: 10
Views: 1704

Re: Experts that DON'T believe in value stocks

I tilt value. Not as much as some. I believe that over the long term it will pay off. I don't know if my investing lifetime will be long enough to count as "the long term". :?: On the other hand, Jack Bogle thinks it's a matter of the time period you're measuring. You pay your money and ta...
by dharrythomas
Thu Dec 24, 2015 1:29 pm
Forum: Investing - Help with Personal Investments
Topic: Roth vs Trad TSP w/ anticipated pension
Replies: 20
Views: 1561

Re: Roth vs Trad TSP w/ anticipated pension

In a similar situation, I split the difference, 5% Traditional TSP and 13% Roth TSP. The 10% going into Traditional allows us a little more cash flow and a little more money that is forced into the checking account each year. This may be a big deal if I predecease DW as the pension amounts will be 5...
by dharrythomas
Sun Dec 20, 2015 9:42 pm
Forum: Investing - Theory, News & General
Topic: ETF or Fund - Which Do You Use?
Replies: 40
Views: 3434

Re: ETF or Fund - Which Do You Use?

Funds only. I don't need any more temptation to over trade my account.
by dharrythomas
Sun Dec 13, 2015 10:01 pm
Forum: Investing - Theory, News & General
Topic: Should I follow Jack Bogle in "I don't do International"
Replies: 90
Views: 8959

Re: Should I follow Jack Bogle in "I don't do International"

I own some international.

Who is right is (a) time period dependent, and (2) unknowable in advance.

Good luck.
by dharrythomas
Sat Dec 12, 2015 8:44 am
Forum: Investing - Theory, News & General
Topic: Currency hedging in international equity funds?
Replies: 15
Views: 1377

Re: Currency hedging in international equity funds?

Tweedy-Browne has both hedged and non-hedged international equity. We don't own either. The only currency hedged fund we own is Vanguard International Bond in LifeStrategy and Target Retirement funds. Bogle and others have done studies that show that over time, world stock markets have similar retur...
by dharrythomas
Fri Dec 11, 2015 9:17 pm
Forum: Personal Finance (Not Investing)
Topic: New Military Retirement System
Replies: 84
Views: 9172

Re: New Military Retirement System

We're leaving out an important point here and as someone who retired in 2014 as a Colonel from the Army Reserves, I was in the privileged class. A private company could never get away with the old system. The bulk of the benefits flow to a highly paid minority of plan participants. The documents fro...
by dharrythomas
Wed Dec 09, 2015 12:04 am
Forum: Investing - Help with Personal Investments
Topic: Pay-off Car Loan or Pay-down Mortgage?
Replies: 16
Views: 1696

Re: Pay-off Car Loan or Pay-down Mortgage?

I'd use the Dave Ramsey "debt snowball" approach. Pay off the car loan, then move the car and payment and the additional payment to the house at least until you can the pay off date on the house before you switch careers. Not having any payments when you transition will lower your stress c...
by dharrythomas
Sat Dec 05, 2015 8:20 am
Forum: Investing - Help with Personal Investments
Topic: I am 34 and have only 3000 bucks to invest...This is a job for...THE BOGLEHEADS
Replies: 49
Views: 4169

Re: I am 34 and have only 3000 bucks to invest...This is a job for...THE BOGLEHEADS

You can only start where you are. Start a Roth IRA at Vanguard with your investment money. Use either a LifeStrategy, Target Retirement, or the STAR fund. Set up auto-investment for twice a month, increase as your salary increases. Read the suggested books. Pay off a mortgage before retirement. You ...
by dharrythomas
Sat Nov 07, 2015 1:09 pm
Forum: Investing - Theory, News & General
Topic: Warren Buffett`s will to his wife
Replies: 13
Views: 2460

Re: Warren Buffett`s will to his wife

I don't have much faith in my ability to control people while I'm alive. I expect my influence to decrease after my death. Since Buffett's first wife left money to her boyfriend, I don't expect him to have more control over #2. I've explained it to her, but I expect her to do what she wants when I'm...
by dharrythomas
Tue Nov 03, 2015 9:12 pm
Forum: Personal Finance (Not Investing)
Topic: Dilemma Regarding Mortgage
Replies: 20
Views: 2658

Re: Dilemma Regarding Mortgage

I don't like adjustable rate loans, the bank is in a better position to take the interest rate risk than even someone with your income. I'd sign up for a fixed rate and pay off early (have done it twice). But clearly, I don't belong in this discussion because I can't imagine spending a million dolla...
by dharrythomas
Tue Nov 03, 2015 8:58 pm
Forum: Investing - Theory, News & General
Topic: Anyone hold Vanguard Energy Fund in Asset Allocation ?
Replies: 12
Views: 1677

Re: Anyone hold Vanguard Energy Fund in Asset Allocation ?

I own a little in my Roth. I've also got some SCV, PME, MCV, LCV, EM, and both REIT, and Int. RE along with LSMG. I started an account for my wife at the same time which I put in Wellington and didn't touch for a decade. She is far ahead. I hold it, I haven't done well, and I don't recommend it to o...
by dharrythomas
Tue Nov 03, 2015 8:45 pm
Forum: Investing - Theory, News & General
Topic: TSP Changes Announced, kinda sorta
Replies: 10
Views: 1575

Re: TSP Changes Announced, kinda sorta

More I is fine, but less S, moving away from the Market and not towards it is not good. Less F and more G isn't great either. The L funds were already heavily weighted towards G. I've also got issues with glide path and terminal allocation of the L Funds. I'd like to see TSM and Total International ...
by dharrythomas
Sun Nov 01, 2015 8:40 pm
Forum: Personal Finance (Not Investing)
Topic: Did I make right choice on Pension vs. Lump sum
Replies: 36
Views: 3833

Re: Did I make right choice on Pension vs. Lump sum

IMO people are naturally attracted to a bird in the hand and are overly worried about on losing out (by dying early) instead of properly viewing the pension as longevity protection. This echoes the logic of people taking SS at 62 when they would almost always be better off in delaying their benefit...
by dharrythomas
Sun Nov 01, 2015 3:04 pm
Forum: Investing - Theory, News & General
Topic: Vanguard sued for [failing to charge market rates to and then paying taxes on services to its mutual funds]
Replies: 781
Views: 125188

Re: Vanguard sued for [failing to charge market rates to and then paying taxes on services to its mutual funds]

It's hard for me to see it has tax avoidance, since (outside of the Roth or a charitable whatever) everything Vanguard doesn't charge is extra income that some intity reports on a tax form. That said I'm not a lawyer and and the law doesn't always make sense. We were once required to post a bond on ...

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