Search found 4205 matches

by JBTX
Fri Dec 14, 2018 11:07 pm
Forum: Investing - Theory, News & General
Topic: "The Academic Argument for Expensive Mutual Funds"
Replies: 13
Views: 1021

Re: "The Academic Argument for Expensive Mutual Funds"

If expensive funds outperform index funds ( before expenses) then some other set of active investors has to be underperforming index funds. Presumably cheap active funds? Pension funds? I just dont buy it. It doesnt make sense.
by JBTX
Fri Dec 14, 2018 10:49 pm
Forum: Investing - Theory, News & General
Topic: "The Academic Argument for Expensive Mutual Funds"
Replies: 13
Views: 1021

Re: "The Academic Argument for Expensive Mutual Funds"

"We show that after controlling for exposures .... high-fee funds significantly outperform low-fee funds before expenses. " While I'm skeptical of the whole result, the above statement makes it practically useless anyway. You can't get high fee funds "before expenses". Presumably if you buy into it...
by JBTX
Fri Dec 14, 2018 10:37 pm
Forum: Personal Consumer Issues
Topic: Question on dryer vent cleaning
Replies: 23
Views: 1444

Re: Question on dryer vent cleaning

I have it done once a year. By then the dryer starts to take longer. We have a long and bent path up to the roof for the vent. I think they charge $125. They clean from the bottom of vent that attaches to dryer, then go into attic and take it apart and clean from middle and go up on the roof make su...
by JBTX
Fri Dec 14, 2018 4:12 pm
Forum: Investing - Theory, News & General
Topic: Ditch your index funds --- riiiiight
Replies: 8
Views: 1337

Re: Ditch your index funds --- riiiiight

"I think you should focus on companies with low debt levels. The companies that get hurt the most when the economy slows are high-debt companies," he said. "This is now a stock picker's market , so it's time to ditch your index funds." I can't count how many times I have heard this ridiculous state...
by JBTX
Fri Dec 14, 2018 4:09 pm
Forum: Investing - Theory, News & General
Topic: Investing in bonds while you still have a mortgage
Replies: 12
Views: 1130

Re: Investing in bonds while you still have a mortgage

I have a client who asked me the age-old question: "I just received $500,000 through (inheritance/lottery/sale-of-business/found-it-on-the-street). Should I invest it or pay off my mortgage?" (About this couple - both are 65, mortgage interest rate is 5.25%, current yield on AGG is 2.6%. They just ...
by JBTX
Fri Dec 14, 2018 4:06 pm
Forum: Investing - Theory, News & General
Topic: What is the worst 30 year rolling return in history? Could 2000-2030 be worse?
Replies: 19
Views: 2215

Re: What is the worst 30 year rolling return in history? Could 2000-2030 be worse?

given that 2000 had the highest US valuations in history and has generally been considered the biggest US stock bubble, the chances that the 30 year returns after it are the worst in history are certainly greater than zero. (in other words, yes) But 18 of those years have passed so it doesn't really...
by JBTX
Fri Dec 14, 2018 3:58 pm
Forum: Investing - Help with Personal Investments
Topic: American Funds 401k - Target Date or do it myself
Replies: 5
Views: 206

Re: American Funds 401k - Target Date or do it myself

http://portfolios.morningstar.com/fund/summary?t=AAMTX®ion=usa&culture=en_US .42 is a pretty good expense ratio for American funds. From what I have seen, they generally track the indices pretty closely, and are better than most other active funds. 2055 is about 85% equities, so I am not sure wha...
by JBTX
Fri Dec 14, 2018 3:54 pm
Forum: Investing - Help with Personal Investments
Topic: Am I Investing Too Much?
Replies: 18
Views: 1651

Re: Am I Investing Too Much?

You haven't posted any information that would help answer the question. If you are 21, you are off to a great start. If you are 64...well, good luck!

I am not sure you can ever save too much. It is much easier to save now, and if you determine you have too much down the road, then stop saving.
by JBTX
Fri Dec 14, 2018 3:44 pm
Forum: Investing - Help with Personal Investments
Topic: Advice on Roth IRA
Replies: 4
Views: 253

Re: Advice on Roth IRA

3. I read that you should preferably put tax-inefficient investments in Roth IRA. Would an index fund be a poor choice then? I don't have a portfolio plan yet with asset allocations all worked out (still learning!), but the eventual plan would be to balance my allocations across different accounts....
by JBTX
Thu Dec 13, 2018 5:44 pm
Forum: Personal Finance (Not Investing)
Topic: Social Security Claiming dilemma-Would love opinions
Replies: 23
Views: 2062

Re: Social Security Claiming dilemma-Would love opinions

I only discovered the SS site today, and am not an expert, so take my post for nothing more than entertainment value! I suspect the reason it says for you retire earlier, is that it allows for your wife to start spousal benefits at 50% of your value earlier. Per actuarial tables you both will probab...
by JBTX
Thu Dec 13, 2018 5:02 pm
Forum: Personal Finance (Not Investing)
Topic: Kudos to Mike (OpenSocialSecurity)
Replies: 10
Views: 1320

Re: Kudos to Mike (OpenSocialSecurity)

Do you have any variants for children with disability? If our child is deemed disabled at our retirement age, once one of us files he could switch from SSI to SSDI...I think. All else equal, I would think it could accelerate when the first one retires, in order to draw higher benefit for child at a...
by JBTX
Thu Dec 13, 2018 4:45 pm
Forum: Personal Finance (Not Investing)
Topic: Kudos to Mike (OpenSocialSecurity)
Replies: 10
Views: 1320

Re: Kudos to Mike (OpenSocialSecurity)

Just noticed the opensocialsecurity calculator ( https://opensocialsecurity.com ) got a mention on page 10 of the December AARP Bulliten as a good online tool to help plan your retirement finances. Kudos, Mike! :beer Thanks, One Ping! I hadn't seen the mention in AARP yet (a little too young to be ...
by JBTX
Thu Dec 13, 2018 4:34 pm
Forum: Personal Finance (Not Investing)
Topic: What percentage of your net worth is your home equity?
Replies: 309
Views: 21633

Re: What percentage of your net worth is your home equity?

Although the horse is sufficiently beaten and now thoroughly dead, that has never stopped me before! :D Net Worth - by definition, it is assets minus liabilities. Period. Similar to Equity on a balance sheet. This is not debatable. Investment - FWIW, if you look at the definition of GDP, personal ho...
by JBTX
Thu Dec 13, 2018 3:46 pm
Forum: Personal Finance (Not Investing)
Topic: Kudos to Mike (OpenSocialSecurity)
Replies: 10
Views: 1320

Re: Kudos to Mike (OpenSocialSecurity)

Don't know if anybody knows, but what are his present value/discount rate assumptions? Also, does he try to assign probability of living to each age value? How does he determine what is "optimal"? I would think if you live long enough delaying will always be better, but obviously your chance of surv...
by JBTX
Wed Dec 12, 2018 9:17 pm
Forum: Investing - Theory, News & General
Topic: Our mentor [Jack Bogle] advises to "buy bonds" for protection in current market
Replies: 61
Views: 5802

Re: Our mentor advises to "buy bonds" for protection in current market

Bogle is a man who has amassed a huge body of experience, knowledge and wisdom. Unlike some of those who appropriate his name and apply it to simplistic 25 words or less sayings that are supposed to relieve people of the need to know anything about the securities they invest in, he stays awake and ...
by JBTX
Wed Dec 12, 2018 5:38 pm
Forum: Investing - Theory, News & General
Topic: Recession Coming
Replies: 49
Views: 5954

Re: Recession Coming

Seems to me you can make a pretty good case...interest rates rising, accelerating economy at full employment, GDP growth rate higher than a long term steady state growth rate given our demographics, etc. But I have no special insight. I don't invest differently. As to the CFO survey, I'm skeptical t...
by JBTX
Wed Dec 12, 2018 5:03 pm
Forum: Personal Consumer Issues
Topic: Donate to homeless?
Replies: 84
Views: 3928

Re: Donate to homeless?

This time of year homeless panhandlers seem more visible than ever with the weather cold and holidays approaching. Today a lady on the sidewalk asked me how I celebrate - Christmas, Kwanza or Hannukah? Is it a good idea to give a couple dollars to such people? Seems quite mean to ignore them. What ...
by JBTX
Wed Dec 12, 2018 4:31 pm
Forum: Investing - Theory, News & General
Topic: What Happened to you during the Financial crisis of 2007–2008
Replies: 182
Views: 13505

Re: What Happened to you during the Financial crisis of 2007–2008

Portfolio/net worth dropped by about 50%, but it more than recovered later. What did I learn? I had always been underweighted bonds. Would have been nice to have more. Sometimes diversification doesn't help that much. Most types of risky assets classes fell a lot. I had weathered the 2000 drop bette...
by JBTX
Wed Dec 12, 2018 3:55 pm
Forum: Investing - Help with Personal Investments
Topic: Why I use Roth for bond instead of stock. Please correct me...
Replies: 45
Views: 3073

Re: Why I use Roth for bond instead of stock. Please correct me...

After searching and reading a tons of discussions on Roth vs Taxable for bond or stock vs bond in Roth, I decided (tentatively) to use our Roth IRA space for bond. Here're 3 factors contributing to my decision. 1) I'm not guaranteed to earn 15% on stock, but guaranteed to pay tax on bond if it's in...
by JBTX
Tue Dec 11, 2018 9:13 pm
Forum: Personal Consumer Issues
Topic: Donate to homeless?
Replies: 84
Views: 3928

Re: Donate to homeless?

This time of year homeless panhandlers seem more visible than ever with the weather cold and holidays approaching. Today a lady on the sidewalk asked me how I celebrate - Christmas, Kwanza or Hannukah? Is it a good idea to give a couple dollars to such people? Seems quite mean to ignore them. What ...
by JBTX
Tue Dec 11, 2018 9:06 pm
Forum: Personal Consumer Issues
Topic: Donate to homeless?
Replies: 84
Views: 3928

Re: Donate to homeless?

Don’t give money to the homeless. Just wait for them to get so desperate that they snatch an inocent persons purse or they’re in your backyard trying to get into your house. Seriously, what difference does it make to you what they do with the $5 they spent 4 hours panhandling for? FWIW, we had a po...
by JBTX
Tue Dec 11, 2018 4:55 pm
Forum: Personal Finance (Not Investing)
Topic: What percentage of your net worth is your home equity?
Replies: 309
Views: 21633

Re: What percentage of your net worth is your home equity?

less than 10%. The problem with this metric it give little insight into the leverage/home value risk. It may mean that house is modest compared to portfolio. Or it may mean that you have a large house that is heavily financed. $1m net worth. Scen A: $900k investments $200k home ($100k) mortgage $1m ...
by JBTX
Tue Dec 11, 2018 4:42 pm
Forum: Personal Finance (Not Investing)
Topic: Layoff coming in 3-6 months, questions about preparing
Replies: 20
Views: 2529

Re: Layoff coming in 3-6 months, questions about preparing

If your wife can cover all expenses and assure 401K why would you dial back? Personally - if I were you - I would INCREASE 401K as you go into the new year to try to get as much in for you personally before you get laid off (and then can't contribute). Sounds like you are in good shape to me. Do yo...
by JBTX
Tue Dec 11, 2018 4:33 pm
Forum: Investing - Theory, News & General
Topic: "The 10 Worst Places To Get Investing Advice"
Replies: 59
Views: 7143

Re: "The 10 Worst Places To Get Investing Advice"

AM Radio. On several occasions DW has said she heard about "X" on an AM radio show and it sounded like a great deal compared to risky stock investments. High returns and little risk!! "X" has included: 1. Various forms of annuities, where you have "market upside" but "limited downside" or "guarantee...
by JBTX
Tue Dec 11, 2018 4:09 pm
Forum: Personal Consumer Issues
Topic: Hyatt Legal Plan for Will and Trust
Replies: 48
Views: 2076

Re: Hyatt Legal Plan for Will and Trust

You probate the Will, not the assets. Either you probate the Will or you don't probate the Will. As often as not, when someone tries to "avoid" probate, their Will has to be probated anyway for one reason or another. However, in most cases, in most states, that's not particularly difficult, expensi...
by JBTX
Tue Dec 11, 2018 2:45 pm
Forum: Personal Consumer Issues
Topic: Hyatt Legal Plan for Will and Trust
Replies: 48
Views: 2076

Re: Hyatt Legal Plan for Will and Trust

Along with avoiding probate, there are also potential asset protection benefits with a trust. Particularly in situations where the child gets divorced after they receive the inheritance. I think that is only the case for an irrevocable trust, that often comes to life upon death, which can be part o...
by JBTX
Tue Dec 11, 2018 2:43 pm
Forum: Personal Consumer Issues
Topic: Hyatt Legal Plan for Will and Trust
Replies: 48
Views: 2076

Re: Hyatt Legal Plan for Will and Trust

Hi, I could get the Hyatt Legal Plan from my employer for about $18 per month. I am looking to using this plan to set up a simple will and/or trust. I am doing my homework on will versus trust. My background: Married with 2 kids in college. Asset 400K house with a 300K mortgage 1.2 million across 4...
by JBTX
Tue Dec 11, 2018 2:35 pm
Forum: Personal Consumer Issues
Topic: Hyatt Legal Plan for Will and Trust
Replies: 48
Views: 2076

Re: Hyatt Legal Plan for Will and Trust

Do a google in the forum on "living trusts" and "virginia"

viewtopic.php?t=218424

https://www.google.com/search?sitesearc ... g+trust+va
by JBTX
Tue Dec 11, 2018 2:26 pm
Forum: Personal Consumer Issues
Topic: Hyatt Legal Plan for Will and Trust
Replies: 48
Views: 2076

Re: Hyatt Legal Plan for Will and Trust

Hi, I could get the Hyatt Legal Plan from my employer for about $18 per month. I am looking to using this plan to set up a simple will and/or trust. I am doing my homework on will versus trust. My background: Married with 2 kids in college. Asset 400K house with a 300K mortgage 1.2 million across 4...
by JBTX
Tue Dec 11, 2018 2:07 pm
Forum: Personal Consumer Issues
Topic: Hyatt Legal Plan for Will and Trust
Replies: 48
Views: 2076

Re: Hyatt Legal Plan for Will and Trust

Hi, I could get the Hyatt Legal Plan from my employer for about $18 per month. I am looking to using this plan to set up a simple will and/or trust. I am doing my homework on will versus trust. My background: Married with 2 kids in college. Asset 400K house with a 300K mortgage 1.2 million across 4...
by JBTX
Tue Dec 11, 2018 12:47 pm
Forum: Investing - Help with Personal Investments
Topic: Great Personal Loss – Guidance and Financial Questions
Replies: 36
Views: 4907

Re: Great Personal Loss – Guidance and Financial Questions

Really sorry for your loss. I can't imagine. I've sometimes seen some informative stuff from Ed Slott on IRAs, inheritance, etc https://www.irahelp.com/faqs.php 10. I just inherited an IRA or Roth IRA from my spouse. What do I do now? Under the tax code you have three options, but your IRA custodian...
by JBTX
Mon Dec 10, 2018 3:45 pm
Forum: Investing - Theory, News & General
Topic: Funding tIRA from joint taxable account?
Replies: 7
Views: 477

Re: Funding tIRA from joint taxable account?

Hello — hopefully a simple question. I did the backdoor Roth IRA this year for both my wife and I (at Vanguard). We also have a small taxable account at Vanguard. Can I go ahead and transfer $12K (2019 contribution limits for her and I) into our joint Vanguard taxable account now and then in Januar...
by JBTX
Mon Dec 10, 2018 2:45 pm
Forum: Investing - Theory, News & General
Topic: Another Roth vs. Traditional question
Replies: 29
Views: 1657

Re: Another Roth vs. Traditional question

- the tax savings could be spent I think for a large part of the non boglehead population this is what is happening. Like a person decides to save say $300 a month. They will be fairly likely to save that dollar amount in either account. In that case the Roth is clearly better because they have tri...
by JBTX
Sun Dec 09, 2018 6:28 pm
Forum: Investing - Theory, News & General
Topic: Another Roth vs. Traditional question
Replies: 29
Views: 1657

Re: Another Roth vs. Traditional question

My spouse and I have most of our money in traditional 401K accounts, but some years ago my (now-former) financial advisor recommended putting some money into a Roth 401K account, as a form of tax diversity. His argument 12-15 years ago was that taxes were as low back then as they were likely to eve...
by JBTX
Sun Dec 09, 2018 1:06 pm
Forum: Investing - Help with Personal Investments
Topic: How to handle large, scheduled, lump sum investments / payments?
Replies: 12
Views: 1278

Re: How to handle large, scheduled, lump sum investments / payments?

Thanks for the additional info. If I were going to pull stuff out of taxable, I'd at least keep it in there long enough for it to be long term. Maybe you can't because you aren't tracking lots (I never did either). You are making enough and investing enough that I don't think it would be a big deal...
by JBTX
Sat Dec 08, 2018 11:11 am
Forum: Investing - Help with Personal Investments
Topic: How to handle large, scheduled, lump sum investments / payments?
Replies: 12
Views: 1278

Re: How to handle large, scheduled, lump sum investments / payments?

Thanks for the additional info. If I were going to pull stuff out of taxable, I'd at least keep it in there long enough for it to be long term. Maybe you can't because you aren't tracking lots (I never did either). You are making enough and investing enough that I don't think it would be a big deal ...
by JBTX
Fri Dec 07, 2018 11:58 pm
Forum: Investing - Help with Personal Investments
Topic: How to handle large, scheduled, lump sum investments / payments?
Replies: 12
Views: 1278

Re: How to handle large, scheduled, lump sum investments / payments?

You (OP) can do any of the above or the following: 1. Wait until you have enough cash to contribute lump sum 2. Contribute every month, or every quarter. You don't have to do the whole thing at once 3. Do like you are doing and pull money from taxable. You may have capital gains, and they may or may...
by JBTX
Thu Dec 06, 2018 6:49 pm
Forum: Investing - Theory, News & General
Topic: Older Dads - how do you plan for your own retirement while still raising kids?
Replies: 38
Views: 5071

Re: Older Dads - how do you plan for your own retirement while still raising kids?

Hi Bogleheads, I read a lot on this forum on planning for retirement (particular early retirement) and saving for kid’s education. However, I have not found a post combining both. This should be relevant for people like me who became parents later in life than usual. Here is my situation: 54 years,...
by JBTX
Thu Dec 06, 2018 4:31 pm
Forum: Investing - Help with Personal Investments
Topic: Young and Dumb--wanting to start investing
Replies: 14
Views: 1371

Re: Young and Dumb--wanting to start investing

I'm 23 years old and am looking to start investing with a goal to retire by 65. After reading The Bogleheads Guide it seems that index investing in a Roth IRA would be best for my knowledge level at this time. I thought I would start by investing the IRS max of $6k this year. However, even after re...
by JBTX
Thu Dec 06, 2018 4:26 pm
Forum: Investing - Help with Personal Investments
Topic: All Weather Portfolio - Ray Dalio during slow growth/ downturn? How to balance bonds in low yield w/ rising rates?
Replies: 15
Views: 1569

Re: All Weather Portfolio - Ray Dalio during slow growth/ downturn? How to balance bonds in low yield w/ rising rates?

I suspect the answer your going to get is mostly "I don't know what is going to happen next" and "I don't really plan to do anything different". That is what I will tell you. I have a lot of respect for Dalio but I don't follow his investing advice. I could care less what Tony Robbins advocates as f...
by JBTX
Thu Dec 06, 2018 4:20 pm
Forum: Investing - Help with Personal Investments
Topic: Is there a point to a Taxable Acount?
Replies: 25
Views: 1885

Re: Is there a point to a Taxable Acount?

Sure there is; it's a very good means to grow wealth assuming a long term investment outlook which you have based on your 10 year withdrawal plan. For whatever reason that would be. If you plan to live off of it in 10 years you're gonna need a lot more. You're a lot further ahead at 28 than most. K...
by JBTX
Wed Dec 05, 2018 10:29 pm
Forum: Investing - Theory, News & General
Topic: The risks of equities when saving for retirement
Replies: 38
Views: 3364

Re: The risks of equities when saving for retirement

There's a limit on how pessimistic your future predictions can be before your plans should stop relying on market mechanisms altogether. If the 30-year real return on global cap-weighted equities is negative, that basically implies widespread societal collapse. If you think this is a real possibili...
by JBTX
Wed Dec 05, 2018 4:58 pm
Forum: Investing - Theory, News & General
Topic: Anybody Miss the Crypto Rage on BH Forums
Replies: 96
Views: 6943

Re: Anybody Miss the Crypto Rage on BH Forums

Precious metals/Gold.

Every couple of decades they take a significant run and we will rehash arguments about the cost of a suit costing roughly the same amount of Gold in 1900 as it does now. Then they tank and the discussion subsides for another 20-30 years.
by JBTX
Wed Dec 05, 2018 4:51 pm
Forum: Investing - Help with Personal Investments
Topic: 401K vs Roth 401K
Replies: 20
Views: 1922

Re: 401K vs Roth 401K

Hi, I have been maxing out for the past few years for my 401K and 457 plans. My employer also offers roth options for both of them. I am considering switching them to the roth options. I understand that I will be losing out on the current tax breaks associated with 401K and 457 plans but I am not s...
by JBTX
Wed Dec 05, 2018 4:31 pm
Forum: Investing - Help with Personal Investments
Topic: Should we abandon the Roth IRA (for now)?
Replies: 19
Views: 1973

Re: Should we abandon the Roth IRA (for now)?

So are you saying now that you have limited funds, such that right now you can only choose between contribute to Roth or max out traditional employer plan? You don't have enough to do both, correct? My gut reaction is at 31%, right now, if you have to choose, I'd probably choose to max traditional....
by JBTX
Wed Dec 05, 2018 3:46 pm
Forum: Investing - Help with Personal Investments
Topic: Roth conversion
Replies: 15
Views: 1744

Re: Roth conversion

Should I convert $75,000 or ? ?? I will be 70 in January and will be taking RMD's from my IRA in 2019. I will also be starting Social security Jan 2019 which will be approx $3000 a month gross. I would like to convert approx. $75,000 this year which will cost me for Fed and State $32,000 which I ha...
by JBTX
Wed Dec 05, 2018 3:16 pm
Forum: Investing - Theory, News & General
Topic: The risks of equities when saving for retirement
Replies: 38
Views: 3364

Re: The risks of equities when saving for retirement

There's a limit on how pessimistic your future predictions can be before your plans should stop relying on market mechanisms altogether. If the 30-year real return on global cap-weighted equities is negative, that basically implies widespread societal collapse. If you think this is a real possibili...
by JBTX
Wed Dec 05, 2018 3:07 pm
Forum: Investing - Help with Personal Investments
Topic: Should we abandon the Roth IRA (for now)?
Replies: 19
Views: 1973

Re: Should we abandon the Roth IRA (for now)?

I've been spending the early days of December assessing our finances and thinking about any necessary adjustments to retirement savings in 2019. My spouse and I live in California, and I am a resident physician at a UC hospital. We contribute our mandatory 7.5% and 10.2% to our respective employer ...
by JBTX
Wed Dec 05, 2018 2:40 pm
Forum: Investing - Theory, News & General
Topic: The risks of equities when saving for retirement
Replies: 38
Views: 3364

Re: The risks of equities when saving for retirement

There's a limit on how pessimistic your future predictions can be before your plans should stop relying on market mechanisms altogether. If the 30-year real return on global cap-weighted equities is negative, that basically implies widespread societal collapse. If you think this is a real possibili...
by JBTX
Wed Dec 05, 2018 2:01 pm
Forum: Personal Finance (Not Investing)
Topic: Paying off debt or maxing Roth IRA as a resident
Replies: 14
Views: 993

Re: Paying off debt or maxing Roth IRA as a resident

I think you can make a case either way at 5.75%. Below 4% for younger people I would generally say keep the mortgage. Above 6%+ I'd lean to paying it off. In between depends on the situation. There are no magic to those parameters. Dave Ramsey is very aggressive about paying off debt. I tend to thin...