Search found 1718 matches

by patrick013
Sat Sep 23, 2017 7:32 pm
Forum: Investing - Help with Personal Investments
Topic: iShares Core Dividend Growth (DGRO)
Replies: 2
Views: 222

Re: iShares Core Dividend Growth (DGRO)

It pays to remember a dividend fund strategy will only work better if an yield weight or equal weight fund is involved. Even better in a Roth long term. Even better if only large caps are in the fund. A fund like NOBL or DGRO is expected to do well in a rising interest rate trend (rising dividends i...
by patrick013
Sat Sep 23, 2017 4:33 pm
Forum: Investing - Help with Personal Investments
Topic: Help with asset location
Replies: 10
Views: 556

Re: Help with asset location

http://myphotos.mypclinuxos.com/images/ ... eturns.png

I always say a picture is worth a thousand words.
by patrick013
Fri Sep 22, 2017 6:06 pm
Forum: Investing - Help with Personal Investments
Topic: Needing a little guidance!
Replies: 13
Views: 816

Re: Needing a little guidance!

Portfolio Allocation Models After reading books, the wiki, and other items mentioned depending on portfolio size an allocation decision is important. If young, working, and portfolio is smaller a growth allocation is often used. If portfolio is larger and risk should be kept low a balanced or moder...
by patrick013
Thu Sep 21, 2017 2:45 pm
Forum: Investing - Theory, News & General
Topic: Larry Swedroe: Dividend Strategies Fall Short
Replies: 15
Views: 1416

Re: Larry Swedroe: Dividend Strategies Fall Short

I don't think Larry is much of a reference on dividend index investing. He completely ignores the 3 major multi decade studies that we have. Discouraging. Well, Jeremy Siegel does like dividend investing and he is definitely an academic. I would say that he is the minority opinion in the academic c...
by patrick013
Thu Sep 21, 2017 2:27 pm
Forum: Investing - Help with Personal Investments
Topic: IRA to Roth conversion now (age 68) or RMD?
Replies: 29
Views: 1564

Re: IRA to Roth conversion now (age 68) or RMD?

Married filing jointly has a 25% tax rate for AGI between $75901 and $153100. I thought brackets were based on taxable income, not AGI? Need to adjust for a few more items then. Adjusted gross income (AGI) is an individual's total gross income minus specific deductions. Taxable income is AGI minus ...
by patrick013
Thu Sep 21, 2017 2:16 pm
Forum: Investing - Help with Personal Investments
Topic: IRA to Roth conversion now (age 68) or RMD?
Replies: 29
Views: 1564

Re: IRA to Roth conversion now (age 68) or RMD?

I thought we were in the 25% marginal tax bracket for the next 2
years and afterwards, after 70. If dropped into the 15% marginal
tax bracket presently conversions would be even better.
by patrick013
Wed Sep 20, 2017 9:18 pm
Forum: Investing - Help with Personal Investments
Topic: IRA to Roth conversion now (age 68) or RMD?
Replies: 29
Views: 1564

Re: IRA to Roth conversion now (age 68) or RMD?

We withdrew some from our TIRA's this year to go play, so we're already in the 25% bracket for this year. As long as you stay at the marginal tax rate you estimated when 70 and thereafter or a lesser tax rate for the conversions you're safe. If you convert at a higher tax rate (would be 28%) then y...
by patrick013
Wed Sep 20, 2017 7:20 pm
Forum: Investing - Help with Personal Investments
Topic: IRA to Roth conversion now (age 68) or RMD?
Replies: 29
Views: 1564

Re: IRA to Roth conversion now (age 68) or RMD?

Married filing jointly has a 25% tax rate for AGI between $75901 and $153100. Equal tax rates have no effect on conversion returns except you pay the taxes upfront, but your Roth will compound tax free. Also, each conversion starts a new 5 year wait for withdrawals, the Roth 5 yr. rule. Keep your Ro...
by patrick013
Wed Sep 20, 2017 6:44 pm
Forum: Investing - Theory, News & General
Topic: Factors are not characteristics but correlations
Replies: 11
Views: 742

Re: Factors are not characteristics but correlations

This is why factors are so unstable & their future performance so unpredictable. Well we need something predictable to invest in. One author suggests factors can be very predictable but I can't find documentation where he proved them or somebody else did. Any info on this approach ? Investing in gr...
by patrick013
Wed Sep 20, 2017 6:33 pm
Forum: Investing - Theory, News & General
Topic: measurement of success of investment(s)
Replies: 33
Views: 1972

Re: measurement of success of investment(s)

For example if you look at the charts on Morningstar, the index is listed as S&P 500 TR. I think the majority of chart and information services use the 500, Morningstar, Yahoo Finance, etc., to calc TR, price, and beta comparisons. Can't think of one that doesn't. Some let you choose the index used...
by patrick013
Wed Sep 20, 2017 5:57 pm
Forum: Investing - Theory, News & General
Topic: Larry Swedroe: Dividend Strategies Fall Short
Replies: 15
Views: 1416

Re: Larry Swedroe: Dividend Strategies Fall Short

I don't think Larry is much of a reference on dividend index investing.
He completely ignores the 3 major multi decade studies that we
have. Discouraging.
by patrick013
Tue Sep 19, 2017 4:09 pm
Forum: Investing - Theory, News & General
Topic: Data-driven individual stock approach
Replies: 28
Views: 1304

Re: Data-driven individual stock approach

I look at data, mostly PE and Debt/Equity ratio, but first look at what if anything is happening that will give this company a brighter future. More revenue, profits, and at a current low PE. Bought a steel mill and the next day it took out a billion dollar loan after an acquisition. Decided to stay...
by patrick013
Tue Sep 19, 2017 2:39 pm
Forum: Investing - Theory, News & General
Topic: measurement of success of investment(s)
Replies: 33
Views: 1972

Re: measurement of success of investment(s)

Not to make an appeal to authority, but just to be clear you're stating that a Nobel laureate in economics is incorrect about what the market portfolio is? And you're still confident in your assertions? You are disseminating falsehoods. Current research doesn't really interest me. I will continue t...
by patrick013
Tue Sep 19, 2017 2:17 pm
Forum: Investing - Theory, News & General
Topic: measurement of success of investment(s)
Replies: 33
Views: 1972

Re: measurement of success of investment(s)

I don't think a fund's index benchmark and the market portfolio mean the same thing. But whatever... What do you mean? The market portfolio is the 500 best stocks in the country based on large cap performance. A particular fund has an index which is unique to that fund. Like a dividend fund based o...
by patrick013
Tue Sep 19, 2017 1:19 pm
Forum: Investing - Theory, News & General
Topic: measurement of success of investment(s)
Replies: 33
Views: 1972

Re: measurement of success of investment(s)

I don't think a fund's index benchmark and the market portfolio mean the same thing. But whatever... What do you mean? The market portfolio is the 500 best stocks in the country based on large cap performance. A particular fund has an index which is unique to that fund. Like a dividend fund based o...
by patrick013
Tue Sep 19, 2017 1:00 pm
Forum: Investing - Theory, News & General
Topic: measurement of success of investment(s)
Replies: 33
Views: 1972

Re: measurement of success of investment(s)

I don't think a fund's index benchmark and the market portfolio
mean the same thing. But whatever...
by patrick013
Tue Sep 19, 2017 12:34 pm
Forum: Investing - Help with Personal Investments
Topic: Help with conservative alloction strategy
Replies: 14
Views: 1186

Re: Help with conservative alloction strategy

A conservative allocation in taxable as no mention of 401k's or other retirement accounts. Here's a well diversified allocation among market caps with your desired allocation made to Emerging Markets as the 500 has substantial foreign revenues already. Just some food for thought: 500 index - 25% EM ...
by patrick013
Tue Sep 19, 2017 12:07 pm
Forum: Investing - Theory, News & General
Topic: measurement of success of investment(s)
Replies: 33
Views: 1972

Re: measurement of success of investment(s)

The Market Portfolio is the standard for most investors. Even with high volatility and unexpected bad years. ok, so how would I find this? the only info I found is that its "a compounded real return of 4.38% with a standard deviation of 11.6%" If this is true, then means the average global investor...
by patrick013
Mon Sep 18, 2017 6:26 pm
Forum: Investing - Theory, News & General
Topic: measurement of success of investment(s)
Replies: 33
Views: 1972

Re: measurement of success of investment(s)

The Market Portfolio is the standard for most investors.
Even with high volatility and unexpected bad years.
by patrick013
Mon Sep 18, 2017 2:08 pm
Forum: Investing - Help with Personal Investments
Topic: Where to put money in?
Replies: 3
Views: 493

Re: TIRA/ Roth

My current employer does not offer a 401K, although they do offer pension. I was wondering if I can or should invest in a TIRA, I'm assuming 18,000 is the limit. I currently have a Roth IRA that I will max out this year. I will be getting married in the next year or two, I'm wondering if putting mo...
by patrick013
Mon Sep 18, 2017 1:13 pm
Forum: Investing - Theory, News & General
Topic: Good books for bond investing?
Replies: 16
Views: 1161

Re: Good books for bond investing?

Finance, Capital Markets, Financial Management, and Investment Management FRANK J. FABOZZI and PAMELA PETERSON DRAKE, 2009 For an 800 pager it's slightly more readable than most. The bond chapter is only 50 pages BTW. Otherwise I like a Short and an Intermediate term bond index fund, even better a 5...
by patrick013
Fri Sep 15, 2017 9:07 pm
Forum: Investing - Help with Personal Investments
Topic: What funds would you pick if you were creating you own small business 401k?
Replies: 21
Views: 1147

Re: What funds would you pick if you were creating you own small business 401k?

S&P 500 index
Emerging Markets Index
Mid Cap Index
Small Cap Index
Intermediate Bond Index

Nothing fancy just good general indexes.
by patrick013
Fri Sep 15, 2017 8:23 pm
Forum: Investing - Help with Personal Investments
Topic: Inherited IRA has 16 Corp Bonds in it
Replies: 16
Views: 1082

Re: Inherited IRA has 16 Corp Bonds in it

I'd bet at today's prices they have high premium prices. At maturity they will be redeemed at par. Selling them would assure you don't lose the premium but replacement bonds would have smaller coupons no doubt. See where you would be cash-wise if you replaced one or two of them. Bonds to sell would ...
by patrick013
Fri Sep 15, 2017 3:00 pm
Forum: Investing - Help with Personal Investments
Topic: IRA withdrawal at 64
Replies: 4
Views: 381

Re: IRA withdrawal at 64

Kevhenn54 wrote:
Fri Sep 15, 2017 1:52 pm
My taxable income will have me paying 25% tax rate on any additional income.
What is your estimate of your tax rate for additional income
when you are 70 including some added SS tax due to extra
income rec'd ?
by patrick013
Fri Sep 15, 2017 2:34 pm
Forum: Investing - Help with Personal Investments
Topic: Traditional 401K vs Roth 401K
Replies: 90
Views: 4590

Re: Traditional 401K vs Roth 401K

In terms of tax bill, your estimated tax is due at least quarterly. Well quarterly payments are generally made, tax credit for 401k or tIRA based on tax return are usually just deducted. Payroll takes care of itself for the most part. Tax expense for investment income has quarterly estimates sent i...
by patrick013
Fri Sep 15, 2017 1:58 pm
Forum: Investing - Help with Personal Investments
Topic: Traditional 401K vs Roth 401K
Replies: 90
Views: 4590

Re: Traditional 401K vs Roth 401K

Yeah, a picture or a table is worth many words. :) I'd still like to understand why you show Traditional IRR as superior to Roth IRR with consistent tax rates when by definition they will end up exactly equal. When going out 40 years at 4 decimal places there is going to be some minute difference -...
by patrick013
Thu Sep 14, 2017 11:17 pm
Forum: Investing - Help with Personal Investments
Topic: Traditional 401K vs Roth 401K
Replies: 90
Views: 4590

Re: Traditional 401K vs Roth 401K

Yeah, a picture or a table is worth many words. :)
by patrick013
Thu Sep 14, 2017 10:35 pm
Forum: Investing - Help with Personal Investments
Topic: Traditional 401K vs Roth 401K
Replies: 90
Views: 4590

Re: Traditional 401K vs Roth 401K

If by that you mean the spendable amount (the amount left after all taxes are paid) - couldn't agree more. http://myphotos.mypclinuxos.com/images/patrick013/tdandroth.png What numbers in that report are the spendable amounts? In other words, could you explain at least "Cash In" and "Cash Out"? Than...
by patrick013
Thu Sep 14, 2017 10:30 pm
Forum: Investing - Help with Personal Investments
Topic: Traditional 401K vs Roth 401K
Replies: 90
Views: 4590

Re: Traditional 401K vs Roth 401K

Ok, understand the zero cap gains, but likely there will be some dividends and capital gains distributions (if a fund) along the way at 15% LTCG rate prior to retirement. Dividends are just less than 2.0% of total stock market index. The dividends 2% I record, tax, and reinvest for later withdrawal...
by patrick013
Thu Sep 14, 2017 9:46 pm
Forum: Investing - Help with Personal Investments
Topic: Traditional 401K vs Roth 401K
Replies: 90
Views: 4590

Re: Traditional 401K vs Roth 401K

A couple of questions on things that don't look exactly right: On your 25% in and 25% out scenario, the traditional investment (column 1) and the Roth (column (4) should have the same IRR, by definition. You have traditional slightly higher. Just the IRR discounting taxes during withdrawal. It look...
by patrick013
Thu Sep 14, 2017 9:05 pm
Forum: Investing - Help with Personal Investments
Topic: Traditional 401K vs Roth 401K
Replies: 90
Views: 4590

Re: Traditional 401K vs Roth 401K

Perhaps do everything on an ... ending cash basis only. If by that you mean the spendable amount (the amount left after all taxes are paid) - couldn't agree more. Ultimately, our goal is not necessarily to maximize IRR for any particular slice of investments. It is to maximize our total dollars at ...
by patrick013
Wed Sep 13, 2017 11:24 pm
Forum: Investing - Help with Personal Investments
Topic: Traditional 401K vs Roth 401K
Replies: 90
Views: 4590

Re: Traditional 401K vs Roth 401K

Perhaps do everything on an ... ending cash basis only. If by that you mean the spendable amount (the amount left after all taxes are paid) - couldn't agree more. No IRR, no NPV, just how much is available to spend after taxes are collected - whether upfront (Roth and taxable), or at withdrawal (tr...
by patrick013
Wed Sep 13, 2017 10:45 pm
Forum: Investing - Help with Personal Investments
Topic: Traditional 401K vs Roth 401K
Replies: 90
Views: 4590

Re: Traditional 401K vs Roth 401K

Obviously, if you construct an example where the tax rate up front is higher than the tax rate coming out in the back, your IRR will be higher for the Traditional than the Roth. No one is disputing that. But that ignores what you are doing with the cash savings from the traditional. Umm, wouldn't t...
by patrick013
Wed Sep 13, 2017 9:26 pm
Forum: Investing - Help with Personal Investments
Topic: Traditional 401K vs Roth 401K
Replies: 90
Views: 4590

Re: Traditional 401K vs Roth 401K

Using IRR doesn't always lead to the theoretical best answer. NPV does. You may have a higher IRR investment, but the upfront opportunity isn't as high. Net present value always gives you the theoretically correct answer. If you had a binary choice of investing $100 and getting $500, or investing $...
by patrick013
Wed Sep 13, 2017 5:35 pm
Forum: Investing - Theory, News & General
Topic: Vanguard advisor on dividends
Replies: 59
Views: 5266

Re: Vanguard advisor on dividends

The first thing that occurs to me about this article is that Vanguard offers (and actively "sells") a number of dividend oriented funds. Since a representative of Vanguard seems to be saying that a dividend oriented investment strategy is pointless, I think Vanguard has created a problem for itself...
by patrick013
Wed Sep 13, 2017 4:48 pm
Forum: Investing - Help with Personal Investments
Topic: Traditional 401K vs Roth 401K
Replies: 90
Views: 4590

Re: Traditional 401K vs Roth 401K

Well the taxable investment is really optional as the lower cost for the tax-deferred investment is what really generates the higher percentage return over the account life. Things are indeed simpler when a taxable account is not a needed accompaniment to a traditional account. When the (Roth contr...
by patrick013
Wed Sep 13, 2017 1:50 pm
Forum: Investing - Help with Personal Investments
Topic: Traditional 401K vs Roth 401K
Replies: 90
Views: 4590

Re: Traditional 401K vs Roth 401K

See Maxing out your retirement accounts for words. As noted in that wiki, see 'Misc. calcs'!A140:C153 in Tools and calculators - Personal_finance_toolbox - Bogleheads , or Traditional versus Roth (401(k) or IRA) to plug in your own numbers. I don't think I completely agree with some of these "sprea...
by patrick013
Tue Sep 12, 2017 2:41 pm
Forum: Investing - Help with Personal Investments
Topic: Traditional 401K vs Roth 401K
Replies: 90
Views: 4590

Re: Traditional 401K vs Roth 401K

See Maxing out your retirement accounts for words. As noted in that wiki, see 'Misc. calcs'!A140:C153 in Tools and calculators - Personal_finance_toolbox - Bogleheads , or Traditional versus Roth (401(k) or IRA) to plug in your own numbers. I don't think I completely agree with some of these "sprea...
by patrick013
Tue Sep 12, 2017 1:45 pm
Forum: Investing - Help with Personal Investments
Topic: Traditional 401K vs Roth 401K
Replies: 90
Views: 4590

Re: Traditional 401K vs Roth 401K

Has anybody done the math how a Roth compares to a traditional, given certain tax assumptions (say contribute at 25 and withdraw at 15), if you assume the up front traditional tax savings are invested in a taxable account? It would be interesting to know what the rate differential is that gets you ...
by patrick013
Mon Sep 11, 2017 11:07 pm
Forum: Investing - Help with Personal Investments
Topic: Traditional 401K vs Roth 401K
Replies: 90
Views: 4590

Re: Traditional 401K vs Roth 401K

I think one could still see what his marginal rate is for RMD's knowing what his RMD is while including the RMD into the SS tax liability calc to determine non-RMD taxable income. What an extra step to see what that rate is to decide between IRA's at present rates. The 50-50 idea seems more appealin...
by patrick013
Mon Sep 11, 2017 9:16 pm
Forum: Investing - Help with Personal Investments
Topic: Traditional 401K vs Roth 401K
Replies: 90
Views: 4590

Re: Traditional 401K vs Roth 401K

Well it looks like we need to add an estimated TD withdrawal
to determine a marginal tax rate to determine if we should have
a TD account to withdraw from in the first place based on marginal
tax rate. So be it but can an average investor go there ? May or
may not be a material difference.
by patrick013
Mon Sep 11, 2017 6:03 pm
Forum: Investing - Help with Personal Investments
Topic: Traditional 401K vs Roth 401K
Replies: 90
Views: 4590

Re: Traditional 401K vs Roth 401K

We can't know your future filing status, future tax rates, how 401K withdrawals will affect your tax liability or your Social Security and Medicare benefits, or even whether these programs will exist as we know them. Today you feel certain your future tax rate will be lower, but that could change. ...
by patrick013
Mon Sep 11, 2017 4:27 pm
Forum: Investing - Help with Personal Investments
Topic: Income fund for ROTH
Replies: 25
Views: 1677

Re: Income fund for ROTH

Anything that generates income is fixed income in my book and worth discussing in that context. The OP should have a large cap stock index in Roth as it has the potential for the most appreciation. The 500 or TSM are the usuals. Lately several strong studies have appeared in relation to income produ...
by patrick013
Mon Sep 11, 2017 3:55 pm
Forum: Investing - Help with Personal Investments
Topic: Traditional 401K vs Roth 401K
Replies: 90
Views: 4590

Re: Traditional 401K vs Roth 401K

We can't know your future filing status, future tax rates, how 401K withdrawals will affect your tax liability or your Social Security and Medicare benefits, or even whether these programs will exist as we know them. Today you feel certain your future tax rate will be lower, but that could change. ...
by patrick013
Sun Sep 10, 2017 2:24 pm
Forum: Investing - Theory, News & General
Topic: Equal Weighting (1/N) Versus Market Cap Weighting
Replies: 22
Views: 2382

Re: Equal Weighting (1/N) Versus Market Cap Weighting

I think people who equal weight consider all of their stock fund or stock choices excellent and would like to give them all equal chance to perform. I think more research is req'd. Do the statisticians actually believe some of the things they say ? So far EW has shown extra returns for large cap and...
by patrick013
Sat Sep 09, 2017 2:05 pm
Forum: Investing - Help with Personal Investments
Topic: Guidance on 401k and IRA
Replies: 9
Views: 1135

Re: Guidance on 401k and IRA

You need to have an estimate of your tax rates before and after retirement to prefer a tIRA or t401k as primary investment. A lower tax rate in retirement, 25% working and 15% in retirement for example : Max tax deferred contributions to tax-deferred, withdraw RMD's or larger withdrawals in retireme...
by patrick013
Sat Sep 09, 2017 12:32 pm
Forum: Personal Finance (Not Investing)
Topic: Question Re: Max 401K Contribution
Replies: 28
Views: 1994

Re: Question Re: Max 401K Contribution

Well there's a first time for everything. Which is why I like going to
HR Block the first year something like this comes up.

Thanks for the response(s) as well.
by patrick013
Fri Sep 08, 2017 9:59 pm
Forum: Personal Finance (Not Investing)
Topic: Question Re: Max 401K Contribution
Replies: 28
Views: 1994

Re: Question Re: Max 401K Contribution

Spirit Rider wrote:
Fri Sep 08, 2017 9:41 pm
We have been assuming sole proprietorship because the OP never mentioned anything about an S-Corp or using W-2 payroll for their 1099 income. The OP should clarify.
Interesting, my tax book thinks everybody has a Sub-S. Might be a viable option.