Search found 630 matches

by learning_head
Sun Jan 01, 2017 9:28 pm
Forum: Investing - Theory, News & General
Topic: Good time to buy inflation-adjusted SPIA?
Replies: 47
Views: 3350

Re: Good time to buy inflation-adjusted SPIA?

BTW I've heard from some who should know that Vanguard takes a very handsome cut on life annuities purchased from Income Solutions compared with most other avenues for purchasing life annuities from Income Solutions. What are other avenues? Quote I have says Vanguard takes 2%. I tried to get quote ...
by learning_head
Sun Jan 01, 2017 12:32 pm
Forum: Investing - Theory, News & General
Topic: Good time to buy inflation-adjusted SPIA?
Replies: 47
Views: 3350

Re: Good time to buy inflation-adjusted SPIA?

... PF is never going to have us at their mercy because substitutes like TIPS and social security are available. One way to increase your consumption of social security in later retirement, when you need it most arguably, is to defer taking it till age 70. Unfortunately, I don't think this substitu...
by learning_head
Fri Dec 30, 2016 12:32 pm
Forum: Investing - Theory, News & General
Topic: Good time to buy inflation-adjusted SPIA?
Replies: 47
Views: 3350

Re: Good time to buy inflation-adjusted SPIA?

Here is a potential issue that makes me want to buy one now, even as I am still relatively quite young for any sort of mortality credits (though planning to retire in 5 years or so). TIPS approach assumes there will be ability to buy inflation adjusted SPIA in say 20-30 years. However, that is not a...
by learning_head
Thu Dec 22, 2016 9:54 am
Forum: Investing - Theory, News & General
Topic: TIP: record inflows but price is going down?
Replies: 32
Views: 2890

Re: TIP: record inflows but price is going down?

@saltycaper: I would think in your explanation of apple analogy, there reason price of apples drops is because there is a greater interest on the seller side the sell than combined interest from all buyer to buy. In other words, seller has some additional knowledge that apples will go bad or any oth...
by learning_head
Wed Dec 21, 2016 8:42 am
Forum: Investing - Theory, News & General
Topic: TIP: record inflows but price is going down?
Replies: 32
Views: 2890

Re: TIP: record inflows but price is going down?

I understand that for every dollar bought there is a dollar sold. That does not tell us anything about the price movement. However, I think the reason price moves at all is because there is different interest in underlying asset coming from buying side vs selling side. If you are a reluctant seller ...
by learning_head
Tue Dec 20, 2016 11:30 pm
Forum: Investing - Theory, News & General
Topic: TIP: record inflows but price is going down?
Replies: 32
Views: 2890

Re: TIP: record inflows but price is going down?

PJW, so you are saying that outside of TIP-related ETFs, there is even more selling of underlying TIP related securities? So, in reality and contrary to what most articles claim, on balance, more investors (or rather investor dollars) have been trying to get out of inflation protection since the ele...
by learning_head
Tue Dec 20, 2016 11:26 pm
Forum: Investing - Theory, News & General
Topic: TIP: record inflows but price is going down?
Replies: 32
Views: 2890

Re: TIP: record inflows but price is going down?

Future inflation expectations (and fear) have increased, and real (TIPS) rates have increased (30 yr from 0.71 to 1.14) since the election, so existing bonds (ETFs/funds) have dropped in value, but people are buying (inflows) to protect against future, increased expectations and fears. And good Bog...
by learning_head
Tue Dec 20, 2016 8:26 pm
Forum: Investing - Theory, News & General
Topic: TIP: record inflows but price is going down?
Replies: 32
Views: 2890

Re: TIP: record inflows but price is going down?

@alec: Articles talk about "net" inflows, which I assume means (inflows - outflows) and accounts for people existing these.
by learning_head
Tue Dec 20, 2016 7:25 pm
Forum: Investing - Theory, News & General
Topic: TIP: record inflows but price is going down?
Replies: 32
Views: 2890

TIP: record inflows but price is going down?

Since the election, with increased inflation expectations, investors are more interested in TIPS. Many articles indicate that there has been record amount of inflows into TIP and other such funds as a result. However, TIP price has been going down ever since November 9. What am I missing? I thought ...
by learning_head
Tue Dec 20, 2016 4:53 pm
Forum: Investing - Theory, News & General
Topic: Good time to buy inflation-adjusted SPIA?
Replies: 47
Views: 3350

Good time to buy inflation-adjusted SPIA?

Hi folks, I am considering purchasing an inflation-adjusted SPIA (tied to CPI-index) within the next few years and trying to decide if now is a good time to buy vs waiting. (I am young enough that mortality credits won't make much difference.) In interest-rate rising environment, nominal annuities (...
by learning_head
Wed Nov 09, 2016 10:10 am
Forum: Investing - Theory, News & General
Topic: Just don't panic
Replies: 61
Views: 8875

Re: Just don't panic

Today's market open is pretty amazing and I think should be memorable. It's funny to see all the websites filled with headlines about market being down huge, next to little tickers showing barely any movement. A very good lesson for how hard it is to predict market behavior, even within hours and mi...
by learning_head
Sun Nov 06, 2016 6:31 pm
Forum: Personal Finance (Not Investing)
Topic: Help-need to select new upcoming employer health insurance option
Replies: 4
Views: 401

Re: Help-need to select new upcoming employer health insurance option

Our premiums would be significantly lower with the high deductible plan ...but doesn't that also mean our pre-tax savings from premiums are lower? Yes, your premium savings of 3k (=7k-4k) are pre-tax, so your after-tax savings for these should be 3k * ( 1- marginal (fed and state) tax rate). If I g...
by learning_head
Sun Nov 06, 2016 5:45 pm
Forum: Investing - Help with Personal Investments
Topic: Portfolio advice - 41yo couple
Replies: 23
Views: 2572

Re: Portfolio advice - 41yo couple

I have quite a lot of stock still to vest, as does my wife, so you'll see from the discussion in posts after the first one that I realized I need to sell now. That will also allow me to loss harvest too. My plan is to annually rebalance in about late February each year, which will allow us to sell ...
by learning_head
Sun Nov 06, 2016 5:39 pm
Forum: Investing - Help with Personal Investments
Topic: Should I signup for HDHP and an HSA?
Replies: 8
Views: 1791

Re: Should I signup for HDHP and an HSA?

simplesimon wrote:no employer contribution and, more significantly, only $138 difference in annual premiums. If it's your employer's goal to save money by offering the HSA, they're doing it wrong.


+1.. may want to double check those two numbers
by learning_head
Sun Nov 06, 2016 5:17 pm
Forum: Investing - Help with Personal Investments
Topic: First time 401K investor Need Help with Choices
Replies: 12
Views: 1058

Re: First time 401K investor Need Help with Choices

1. I should put most of my money in my traditional 401k rather than my roth 401k – I am having trouble understanding what the benefit of one versus the other would be. Would it be beneficial to put some in Roth and some in Traditional as I expect my tax bracket to be higher when I retire? Higher th...
by learning_head
Sun Nov 06, 2016 4:52 pm
Forum: Investing - Help with Personal Investments
Topic: Portfolio advice - 41yo couple
Replies: 23
Views: 2572

Re: Portfolio advice - 41yo couple

Few more answers (IMHO) 4. Is there anything about current market conditions that should make me wary about this allocation? No, try not to look at "current market conditions". That's anti-boglehead way for the most part. 5. What is likely to be our best option(s) for lower votality? I hav...
by learning_head
Sun Nov 06, 2016 4:42 pm
Forum: Investing - Help with Personal Investments
Topic: Portfolio advice - 41yo couple
Replies: 23
Views: 2572

Re: Portfolio advice - 41yo couple

8. I realize that holding onto the employer stock is definitely not Boglehead-approved, but selling at current oil prices seems like a bad decision. One idea may be to aim to sell a fifth of it once a year for five years? Any thoughts? I struggle with similar questions regarding wanting to get as m...
by learning_head
Sun Nov 06, 2016 4:31 pm
Forum: Investing - Help with Personal Investments
Topic: Portfolio advice - 41yo couple
Replies: 23
Views: 2572

Re: Portfolio advice - 41yo couple

Ethelred wrote:Annual contributions
<snip>
$6500 his Roth IRA (backdoor)


At 41 years of age, I think max you can contribute to your Trad / backdoor Roth is $5500. Am I missing something?
by learning_head
Sun Nov 06, 2016 3:55 pm
Forum: Investing - Help with Personal Investments
Topic: Can Bank Change CD Terms Mid-Stream?
Replies: 40
Views: 3328

Re: Can Bank Change CD Terms Mid-Stream?

No reason why they should not be able to change your APY either.
by learning_head
Thu Nov 03, 2016 4:12 pm
Forum: Investing - Theory, News & General
Topic: pre vs. post tax in calculating overall asset allocation (not fund placement)
Replies: 12
Views: 1064

Re: pre vs. post tax in calculating overall asset allocation (not fund placement)

@OP: yes

(& for taxable accont, you'd have to estimate how much you have in gains to approximate how much those would be taxed)
by learning_head
Wed Nov 02, 2016 10:24 am
Forum: Investing - Theory, News & General
Topic: Remind me again why we put VXUS/total intl in our lazy 3 fund portfolio?
Replies: 26
Views: 3530

Re: Remind me again why we put VXUS/total intl in our lazy 3 fund portfolio?

pkcrafter wrote:If at least one of your assets isn't underperforming, you aren't diversified.


+1
by learning_head
Wed Nov 02, 2016 10:17 am
Forum: Investing - Theory, News & General
Topic: Help me understand dividends
Replies: 93
Views: 4689

Re: Help me understand dividends

I don't think this is too complicated... Scenario 1: You are an active investor & owner of a specific private company and get to make decisions: company makes $X in profit. You get to decide whether to take part of $X back (i.e. take the dividend), or leave it all on the company books and reinve...
by learning_head
Tue Nov 01, 2016 10:23 pm
Forum: Investing - Theory, News & General
Topic: Why can't stocks be deterministically/objectively/mechanically priced?
Replies: 75
Views: 4260

Re: Why can't stocks be deterministically/objectively/mechanically priced?

I thought more about it, and here's how I think I envision it: Imagine a private company that wants to go public. They look at their assets A and liabilities L. Then compute equity E = A - L and IPO. Share price = E / shares. So far, so good. Now instead of having a highly speculative market as it ...
by learning_head
Tue Nov 01, 2016 9:51 pm
Forum: Investing - Theory, News & General
Topic: Help me understand dividends
Replies: 93
Views: 4689

Re: Help me understand dividends

I'm taking the investor's perspective. Why should I, an investor, care about receiving dividends, when they do not increase my wealth but do increase my tax burden? Am I missing something? I would guess most folks on this board would agree with you and do not care about dividends from a fund aside ...
by learning_head
Tue Nov 01, 2016 9:35 pm
Forum: Investing - Theory, News & General
Topic: Paid off home. View as bond or cash in AA if you plan to sell in retirement?
Replies: 32
Views: 2637

Re: Paid off home. View as bond or cash in AA if you plan to sell in retirement?

Include it as what it is - it is undiversified residential real estate. Definitely isn't a bond nor is it anything resembling cash. +1 I think this nails it. Same thing as if I went out tomorrow and bought your house from you. How would you tell me to consider it in my portfolio? Exactly what it sa...
by learning_head
Tue Nov 01, 2016 9:27 pm
Forum: Investing - Theory, News & General
Topic: Employer Equity Program vs 401k - close results?
Replies: 10
Views: 834

Re: Employer Equity Program vs 401k - close results?

You get an immediate and free 40% gain on your share purchase. If you have the discipline to sell after a year, this is a no-brainer. Go for the share program. +1 If you model out the cash flows, you will notice that - if you choose to buy the shares - you are only skipping one year's worth of full...
by learning_head
Sun Oct 30, 2016 8:42 pm
Forum: Investing - Theory, News & General
Topic: How much international?
Replies: 78
Views: 6790

Re: How much international?

I used to have international allocation closer to 50%, but have been trying to limit it closer to 30%, once I realized (thanks to Rick Ferri's book) that a lot of the return of that international allocation is driven purely based on dollar index (i.e. relationship of dollar to other currencies). So ...
by learning_head
Sun Oct 30, 2016 8:36 pm
Forum: Investing - Theory, News & General
Topic: too much passive indexes => bad governance?
Replies: 15
Views: 1384

too much passive indexes => bad governance?

(Apologies is this was discussed) I thought this article mentions a couple of interesting points: (1) Aside from well-known rise of index funds in and out of Vanguard, there are a ton of "closet indexers" (active funds basically charging high fees to deliver index performance with minor de...
by learning_head
Fri Oct 28, 2016 2:48 pm
Forum: Investing - Theory, News & General
Topic: The riskiness of home ownership
Replies: 239
Views: 16085

Re: The riskiness of home ownership

In that situation I agree, but most people are not in that situation. (money to pay off mortgage sitting in investments). You don't have to have a terrible FICO score to pay interest on a mortgage, every mortgage has interest and it should be included in $Y as it is an expense to own. Thanks BW1985...
by learning_head
Fri Oct 28, 2016 2:22 pm
Forum: Investing - Theory, News & General
Topic: The riskiness of home ownership
Replies: 239
Views: 16085

Re: The riskiness of home ownership

Are you including the interest on the mortgage as an expense? If not, shouldn't it be? With rent you do not have this expense. You missed the most important part - you don't get back interest payments either. When you finance a house using a mortgage, you pay rent to the bank (basically, you're ren...
by learning_head
Fri Oct 28, 2016 2:08 pm
Forum: Investing - Theory, News & General
Topic: Roth 401k vs Roth IRA for after-tax 401k money?
Replies: 5
Views: 504

Re: Roth 401k vs Roth IRA for after-tax 401k money?

Thanks for the replies! Do you know then of any disadvantages of contributing after-tax money to Roth 401(k) until I quit and after I leave my employer rolling everything over from Roth 401(k) to Roth IRA? (I already have Roth IRA started many years ago so 5-yr-rule should not be an issue) (Gryphon ...
by learning_head
Thu Oct 27, 2016 4:23 pm
Forum: Investing - Theory, News & General
Topic: Roth 401k vs Roth IRA for after-tax 401k money?
Replies: 5
Views: 504

Roth 401k vs Roth IRA for after-tax 401k money?

My megacorp recently added ability to do in-service rollover of my after-tax 401k contributions to Roth 401k or Roth IRA. Roth 401k has a bit better options for me (lower-fee Vanguard funds than I cannot get on my own), but is there any downsides vs Roth IRA? From what I gather, later on, to avoid R...
by learning_head
Thu Oct 27, 2016 2:24 pm
Forum: Investing - Theory, News & General
Topic: Dont invest in 401K
Replies: 42
Views: 4562

Re: Dont invest in 401K

You are not really locking money for 30 years. IIRC if you really want it, you can take it out and pay 10% penalty in addition to deferred tax. For most folks on this forum, they will never do so. Plus most plans get additional match $$ from their companies.
by learning_head
Thu Oct 27, 2016 1:22 pm
Forum: Investing - Theory, News & General
Topic: The riskiness of home ownership
Replies: 239
Views: 16085

Re: The riskiness of home ownership

The mortgage payment (PITI) has to be CHEAPER than renting Even if you could find a mortgage for the same amount as renting... ... then decide rationally whether to finance it through a mortgage or rent ... In my area, I save about $400 a month with my mortgage than what the house next door to me r...
by learning_head
Tue Oct 25, 2016 12:38 pm
Forum: Investing - Help with Personal Investments
Topic: Help with 66yr old mother
Replies: 28
Views: 2916

Re: Help with 66yr old mother

You need to be very cautious about heavily over-weighting stocks. She owns the individual stocks which already adds more risk to her portfolio than someone would who owns index funds. If you overweight stocks in the rest of her investments then her overall portfolio may be riskier than you realize....
by learning_head
Tue Oct 25, 2016 11:54 am
Forum: Investing - Help with Personal Investments
Topic: HSA or no?
Replies: 14
Views: 1818

Re: HSA or no?

What's the alternative? In my megacorp, difference in premiums between "regular" plan and HSA as well as tax and extra company contribution make HSA a very very appealing option compared to their other options, even if spending full amount. If you do use HSA, I would indeed highly recommen...
by learning_head
Mon Oct 24, 2016 6:18 pm
Forum: Personal Finance (Not Investing)
Topic: Need help. Drowning in debt and worried about the future and retirement
Replies: 243
Views: 22707

Re: Need help. Drowning in debt and worried about the future and retirement

Another small piece of advice; this is YOUR financial life we're talking about. You can not let your dependents determine YOUR financial future. Remember who's the adult and that it's YOUR life we're talking about. You have to set the example. Think of this as a learning experience for them (which ...
by learning_head
Mon Oct 24, 2016 4:18 pm
Forum: Personal Finance (Not Investing)
Topic: Need help. Drowning in debt and worried about the future and retirement
Replies: 243
Views: 22707

Re: Need help. Drowning in debt and worried about the future and retirement

Lots of good advice here already. Great to hear that your wife agreed to go for the seminar with you. It's a very good and promising sign. Few random additional thoughts: (1) I would not put any money into Roth for as long as you have any outstanding debt of (after-tax) over 2-3%. Consider interest ...
by learning_head
Fri Sep 30, 2016 11:44 am
Forum: Investing - Theory, News & General
Topic: Cash+Stocks Retirees, We Need To Talk!
Replies: 36
Views: 3890

Re: Cash+Stocks Retirees, We Need To Talk

A good approach is simply the asset allocation approach. +1 In practice, I imagine you'd have a bunch of CDs maturing at different times. Whenever CD matures with $X, you'd look at (a) $Y = your planned uncovered expenses until next CD matures + some cushion if needed (b) your new asset allocation ...
by learning_head
Thu Sep 29, 2016 4:07 pm
Forum: Investing - Theory, News & General
Topic: International in Taxable account
Replies: 16
Views: 2630

Re: International in Taxable account

The wiki info is not misleading: it says "if all else is equal" -- but of course for the reasons you list all else is most certainly not currently equal. Investors are responsible for doing their due diligence. I respectfully disagree. IMHO, that wiki statement is misleading for following...
by learning_head
Thu Sep 29, 2016 9:19 am
Forum: Investing - Theory, News & General
Topic: International in Taxable account
Replies: 16
Views: 2630

Re:

If all else is equal, international funds have a small tax advantage over US funds, because they are eligible for the foreign tax credit. All else is not necessarily equal; if an emerging market is reclassified as developed, an emerging-markets index fund will have to sell all its stock in that cou...
by learning_head
Fri Aug 26, 2016 10:25 am
Forum: Investing - Theory, News & General
Topic: Cash balance plan with high fees but tax benefit
Replies: 8
Views: 1027

Re: Cash balance plan with high fees but tax benefit

I came across this site where someone put together a spreadsheet for comparison of exactly these questions. You could paramterize the 401(k) plan with the parameters of the plan in question and compare with taxable account. https://earlyretirementnow.com/2016/06/22/retirement-account-comparison/ Th...
by learning_head
Fri Aug 26, 2016 9:36 am
Forum: Investing - Theory, News & General
Topic: TIPS - Did you give up?
Replies: 471
Views: 59020

Re: TIPS - Did you give up?

I think of a TIPS ladder (bought at auction, held to maturity) as the ultimate annuity. ... 100% inflation protected. [Updated thanks to #Cruncher point below] That's not quite true for taxable accounts due to taxes on inflation component. The larger the inflation the less buying power you will hav...
by learning_head
Fri Jun 24, 2016 2:06 pm
Forum: Personal Finance (Not Investing)
Topic: house affordability question
Replies: 39
Views: 2231

Re: house affordability question

for some perspective, we're currently paying 3k/month to rent (includes utilities, cable). using a mortgage calculator and factoring in our desired area, if we were to put down 300k (38%) toward an 800k house, using a 30-year fixed w/ 3.6% interest, our monthly payments would be almost exactly the ...
by learning_head
Fri Jun 24, 2016 1:50 pm
Forum: Investing - Theory, News & General
Topic: Cash balance plan with high fees but tax benefit
Replies: 8
Views: 1027

Re: Cash balance plan with high fees but tax benefit

So... how do we decide whether to contribute more or not?

If information I provided is not enough, I can provide any additional info needed.
by learning_head
Mon Jun 20, 2016 9:08 am
Forum: Investing - Theory, News & General
Topic: Cash balance plan with high fees but tax benefit
Replies: 8
Views: 1027

Re: Cash balance plan with high fees but tax benefit

Hi KSActuary, Could you elaborate? What kind of more info should we look for? What kind of more aggressive benefits are there for older participants? I think all can optionally contribute up to same limits (~45k) and investments are managed the same way. Would the decision whether to participate dep...
by learning_head
Thu Jun 16, 2016 10:14 am
Forum: Investing - Theory, News & General
Topic: Cash balance plan with high fees but tax benefit
Replies: 8
Views: 1027

Re: Cash balance plan with high fees but tax benefit

Thanks for reply DDM4inv79 Today's marginal rate is 40% (0.28*1.25 for AMT marginal rate of 35% + 5% state tax). Future marginal rate is expected to be ~50% in a few years. Retirement marginal rate might be 20% or 30% (it's likely at least 20 years away, so who knows...) Placing a dollar into the pl...
by learning_head
Sat Jun 11, 2016 12:59 pm
Forum: Investing - Theory, News & General
Topic: Cash balance plan with high fees but tax benefit
Replies: 8
Views: 1027

Cash balance plan with high fees but tax benefit

A relative started a job at a practice with ability to contribute to "cash balance retirement plan" administered and run by Stifel Nicolaus. Basically, looks like a collection of actively managed funds. Overall (mutual fund + administrator) fees are ~1.5% to 2%. However, tax deferral seems...
by learning_head
Wed Apr 20, 2016 12:58 pm
Forum: Investing - Theory, News & General
Topic: SPIA contract review
Replies: 1
Views: 357

SPIA contract review

Has anyone hired a lawyer or any other professional to review an SPIA contract by any chance? If so, how did you pick the reviewer? I am told a person has 7 days to review the contract when they buy SPIA and can back out only during that time. Otherwise, you are signed up for life of course. I was a...
by learning_head
Wed Apr 20, 2016 12:56 pm
Forum: Investing - Theory, News & General
Topic: Dissapointed in Penfed: will nickle and dime you
Replies: 7
Views: 1560

Re: Dissapointed in Penfed: will nickle and dime you

Have you tried asking them to waive the fee? and trying later w/ another person if you get denied? sometimes it depends how that person's day is going when you ask; perhaps on how big a customer you are. someone there was nice enough to volunteer to waive the fee for the CU statements before I got ...

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