Search found 1298 matches

by Outer Marker
Thu Jan 21, 2021 11:28 am
Forum: Personal Investments
Topic: BOA/Merrill Edge brokerage
Replies: 15
Views: 1070

Re: BOA/Merrill Edge brokerage

There’s not a Vanguard branch near me either. But I use them!
by Outer Marker
Wed Jan 20, 2021 7:11 pm
Forum: Personal Investments
Topic: dumb question about taxes in retirement
Replies: 4
Views: 587

Re: dumb question about taxes in retirement

Most of you folks seem way ahead of me in this retirement game, I'm getting close to that status and have a dumb question about taxes: I file a 1040 and there's a box there that says something like "distributions from 401k, IRA, etc" I assume that when I'm retired and taking money out of ...
by Outer Marker
Wed Jan 20, 2021 10:27 am
Forum: Personal Investments
Topic: Investing Extra Money
Replies: 20
Views: 2234

Re: Investing Extra Money

P.S., if you do opt to undertake a portfolio review, take the Vanguard questionaire and see where it puts you in terms of asset allocation: https://retirementplans.vanguard.com/VG ... Step=start
by Outer Marker
Wed Jan 20, 2021 10:03 am
Forum: Personal Investments
Topic: Investing Extra Money
Replies: 20
Views: 2234

Re: Investing Extra Money

Thanks for the advice so far. For the remaining 60k, any thoughts on what proportion/percentage I should be allocating of it to vtsax/vtiax and going forward? OP, to answer this question, you really need to do a thorough portfolio review, which I would highly recommend. From the whole life debacle,...
by Outer Marker
Mon Jan 18, 2021 4:46 pm
Forum: Personal Investments
Topic: Investing Extra Money
Replies: 20
Views: 2234

Re: Investing Extra Money

To reiterate the above, lose the whole life policy. Highly doubt you need it +1. Get term life, invest the difference in the premiums and you will undoubtly be better off. Whole life insurance is not an investment, it is just a cash cow for insurance companies. You only win if you die soon after op...
by Outer Marker
Mon Jan 18, 2021 10:03 am
Forum: Personal Investments
Topic: Investing Extra Money
Replies: 20
Views: 2234

Re: Investing Extra Money

Welcome to the forum. I would just throw extra money into VTSAX and VTIAX (I wouldn't want to use VTWAX in taxable, because it'd be impossible to use the foreign tax credit). You didn't ask, but I question why you have a life insurance policy at all, let alone a whole life one (do you have any depe...
by Outer Marker
Mon Jan 18, 2021 8:52 am
Forum: Personal Investments
Topic: Direct future 401K contributions to 100% bonds?
Replies: 15
Views: 1655

Re: Direct future 401K contributions to 100% bonds?

This is pretty much a no brainer. Pay off the car loan tomorrow with the surplus cash. Aggressively pay down the mortgage, which acts as a "negative bond." WIth a paid off house, and paid off car, you are much more secure. To the extent you want to increase your fixed income after accompli...
by Outer Marker
Sun Jan 17, 2021 7:40 am
Forum: Personal Investments
Topic: How do you maintain discipline during Volatility?
Replies: 52
Views: 2542

Re: How do you maintain discipline during Volatility?

I second the advice above to use an all-in-one portfolio to smooth out the ride. Since you know you are prone to bad behavior, pick one more conservative than would otherwise be "age appropriate". You'll likely leave a little on the table in terms of returns, but far less than panic sellin...
by Outer Marker
Sun Jan 17, 2021 6:41 am
Forum: Personal Investments
Topic: Portfolio review at 50 - how to prepare for possible early retirement?
Replies: 52
Views: 4832

Re: Portfolio review at 50 - how to prepare for possible early retirement?

One immediate optimization step you can take is to stop paying into VTWAX and start paying down the mortgage with your taxable funds. +1. exactly what I was thinking. In addition, not having a mortgage decreases your need to draw down cash if you decide to early retire. If you have a stable value f...
by Outer Marker
Wed Jan 13, 2021 5:08 am
Forum: Personal Finance (Not Investing)
Topic: Got a job offer for $840k/yr. Should I come out of retirement?
Replies: 211
Views: 22562

Re: Got a job offer for $840k/yr. Should I come out of retirement?

Sounds like interesting work. Not exactly going back into the coal mine. I'd take it. The funny thing is I found work to be a lot more fun once I reached the point where I didn't have to do it anymore. There's also a certain nobility and sense of satisfaction we take from work. You can only play so ...
by Outer Marker
Mon Jan 11, 2021 3:28 pm
Forum: Personal Investments
Topic: [Should I open a Robinhood account?]
Replies: 50
Views: 2567

Re: [Should I open a Robinhood account?]

It’s fun. My significant other signed up for an account. Slick and gamelike interface. I treat it like play money I take to the blackjack tables. I’m not sure if it’s a good thing or not for young investors. On the one hand, for the first time ever, my SO has shown an interest in the markets. On the...
by Outer Marker
Sun Jan 10, 2021 7:59 pm
Forum: Personal Investments
Topic: Critic my Asset Allocation
Replies: 7
Views: 952

Re: Critic my Asset Allocation

I think it is a mistake not to hold any fixed income. Following Benjamin Grahm's rule, and especially given your age and retirement plans, I would suggest adding 25% fixed income - preferably via stable value in your 401Ks to avoid interest rate risk. see, https://www.bogleheads.org/wiki/Graham_75-2...
by Outer Marker
Sat Dec 26, 2020 4:57 pm
Forum: Personal Finance (Not Investing)
Topic: Paydown mortgage or invest
Replies: 5
Views: 700

Re: Paydown mortgage or invest

Are you sure about those conforming loan limits? If we’re talking about NYC, that’s pretty much the definition of a high cost of living area. I would think you could borrow more at conforming rates without bringing cash to the table.
by Outer Marker
Sun Dec 20, 2020 9:02 am
Forum: Personal Investments
Topic: Roast me! ER doctor portfolio
Replies: 88
Views: 7933

Re: Roast me! ER doctor portfolio

You've won the game. No need to be taking quite that much risk. I would dial it back to 70/30 - and relocate the bonds from muni's in taxable to stable value (to minimize obvious interest rate risk), if you have access to it in your 401K. Winter is coming. If you're going to take this suggestion, do...
by Outer Marker
Sat Dec 19, 2020 8:27 am
Forum: Personal Investments
Topic: my IPS for comments
Replies: 15
Views: 806

Re: my IPS for comments

As others have suggested, you are light on bonds. Your real estate holdings are illiquid, can't be used for rebalancing, and do nothing to improve the stability of your portfolio. I'd suggest no more than 70/30 in your 50s and 10 years out from retirement. That's my AA, and I basically intend to mai...
by Outer Marker
Sun Dec 13, 2020 11:34 am
Forum: Personal Investments
Topic: Usefulness of tiny holdings PAS recommends
Replies: 19
Views: 1322

Re: Usefulness of tiny holdings PAS recommends

+1. The Vanguard PAS seems to apply a very cookie cutter model based on Vanguard's strategy. We get the "cookie cutter" comment every time Vanguard advisers are mentioned, but what is the alternative to them being "cookie cutter"? When they come up with even slightly complex por...
by Outer Marker
Sun Dec 13, 2020 11:11 am
Forum: Personal Investments
Topic: Usefulness of tiny holdings PAS recommends
Replies: 19
Views: 1322

Re: Usefulness of tiny holdings PAS recommends

Vanguard develops asset allocation models and the individual advisors use them. When I eas on the board of a nonprofit that had Vanguard manage the endowment, the rep would tell us the recommended portfolio but had nothing at all to say about why. He just reported what Vanguard wanted to do. We had...
by Outer Marker
Thu Dec 10, 2020 1:23 pm
Forum: Personal Investments
Topic: Should I add bonds to portfolio?
Replies: 22
Views: 1891

Re: Should I add bonds to portfolio?

Benjamin Grahm suggests that all portfolio's should have a minimum of 25% in bonds: https://www.bogleheads.org/wiki/Graham_75-25_rule If you're a Fed, I would keep 25% in the G Fund to avoid interest rate risk; if you're in State gov, I'd look for a stable value fund. Do interest rates not matter w...
by Outer Marker
Thu Dec 10, 2020 10:41 am
Forum: Personal Investments
Topic: Should I add bonds to portfolio?
Replies: 22
Views: 1891

Re: Should I add bonds to portfolio?

Suggest you review the Vanguard model portfolio allocations: https://personal.vanguard.com/us/insights/saving-investing/model-portfolio-allocations A 70/30 portfolio over the last 90 years returned 9.1% vs. 10.1% for all equity. That's not giving up much for a considerably gentler ride -- especially...
by Outer Marker
Thu Dec 10, 2020 10:28 am
Forum: Personal Investments
Topic: Can I withdraw a penny of non-deductible funds in my tIRA without penalty?
Replies: 12
Views: 756

Re: Can I withdraw a penny of non-deductible funds in my tIRA without penalty?

I think I was thinking of the $6k/year limit as applying to the conversion step, but it only applies to the non-deductible tIRA contribution right? Makes more sense now. Correct. You can convert any amount you want from a tira to a Roth in any given year. The limit only applies to contributions.
by Outer Marker
Thu Dec 10, 2020 8:54 am
Forum: Personal Investments
Topic: Can I withdraw a penny of non-deductible funds in my tIRA without penalty?
Replies: 12
Views: 756

Re: Can I withdraw a penny of non-deductible funds in my tIRA without penalty?

If you're doing another backdoor roth in 2021, I'd just let the penny sit until then, and convert it with the next transaction. In fact, I'm doing the same myself with a similar amount of residual interest that got paid when I converted. Less paperwork and housekeeping.
by Outer Marker
Thu Dec 10, 2020 8:41 am
Forum: Personal Investments
Topic: Retire at 65; Don't take Pension Until 70 ?
Replies: 12
Views: 1103

Re: Retire at 65; Don't take Pension Until 70 ?

...for every year between 65 - 70; the annual amount goes UP a very favorable 10 %. So, like I am planning to do for maxing Social Security; I am analyzing retiring at 65 and not applying for pension benefits until age 70. I think you've answered your own question. This is a very favorable return a...
by Outer Marker
Thu Dec 10, 2020 3:22 am
Forum: Personal Investments
Topic: Should I add bonds to portfolio?
Replies: 22
Views: 1891

Re: Should I add bonds to portfolio?

Benjamin Grahm suggests that all portfolio's should have a minimum of 25% in bonds:
https://www.bogleheads.org/wiki/Graham_75-25_rule

If you're a Fed, I would keep 25% in the G Fund to avoid interest rate risk; if you're in State gov, I'd look for a stable value fund.
by Outer Marker
Tue Dec 08, 2020 7:20 pm
Forum: Personal Investments
Topic: Portfolio Help needed for SAHM
Replies: 9
Views: 907

Re: Portfolio Help needed for STAHM

Thank you Outer Marker. Your opinion on the mortgage is very interesting and worth considering. I completed the AA questionnaire and the results were 60/40 which surprised me, it is very conservative. I think because we may use some funds to pay for my child's future tuition in 5 years. K-12 plus c...
by Outer Marker
Tue Dec 08, 2020 3:27 am
Forum: Personal Investments
Topic: Portfolio Help needed for SAHM
Replies: 9
Views: 907

Re: Portfolio Help needed for STAHM

Yikes! That portfolio is really a mess. Luckily, you've come to the right place. This can be made a lot more streamlined and simple in short order. I would highly recommend you consider a 3-fund portfolio: https://www.bogleheads.org/forum/viewtopic.php?f=10&t=88005 Your asset allocation is very ...
by Outer Marker
Mon Dec 07, 2020 3:00 pm
Forum: Personal Investments
Topic: Why are folks still clinging to Mutual Funds vs ETFs?
Replies: 100
Views: 8737

Re: Why are folks still clinging to Mutual Funds vs ETFs?

Pretty sad that a "Flagship rep" can't do basic math. Did she suggest you move to the ETF or did you bring it up? A downside is if you are at Vanguard you cannot yet buy fractional shares (e.g. instead of being able to buy something like $2000 a month in VTSAX you have to look at the pric...
by Outer Marker
Mon Dec 07, 2020 1:36 pm
Forum: Personal Investments
Topic: Why are folks still clinging to Mutual Funds vs ETFs?
Replies: 100
Views: 8737

Re: Why are folks still clinging to Mutual Funds vs ETFs?

I would add that when I talked to the rep, I specifically said that the costs seemed trivial -- unless I was misplacing a decimal point -- and asked her to calculate. Ridiculous.
by Outer Marker
Mon Dec 07, 2020 1:26 pm
Forum: Personal Investments
Topic: Why are folks still clinging to Mutual Funds vs ETFs?
Replies: 100
Views: 8737

Re: Why are folks still clinging to Mutual Funds vs ETFs?

Your math is wrong. It’s a $100 difference per year for $1MM invested in two funds with a 1 bps difference in expense ratio. Hmm. I always screw up the simple stuff. :oops: I was led into that one on a courtesy call I just wrapped up with my new Flagship rep. She did the math. Go figure. :shock: We...
by Outer Marker
Mon Dec 07, 2020 1:22 pm
Forum: Personal Finance (Not Investing)
Topic: Hate My Job
Replies: 239
Views: 20987

Re: Hate My Job

I don't see myself leaving my house, but who knows. Its a big decision, for sure. But, even my investment banking and Wall Street attorney friends left the City for cheaper taxes and less expensive real estate in retirement. With the money they save, they can travel back to NYC regularly for fun wh...
by Outer Marker
Mon Dec 07, 2020 12:41 pm
Forum: Personal Investments
Topic: Why are folks still clinging to Mutual Funds vs ETFs?
Replies: 100
Views: 8737

Re: Why are folks still clinging to Mutual Funds vs ETFs?

Your math is wrong. It’s a $100 difference per year for $1MM invested in two funds with a 1 bps difference in expense ratio. Hmm. I always screw up the simple stuff. :oops: I was led into that one on a courtesy call I just wrapped up with my new Flagship rep. She did the math. Go figure. :shock:
by Outer Marker
Mon Dec 07, 2020 12:31 pm
Forum: Personal Investments
Topic: Why are folks still clinging to Mutual Funds vs ETFs?
Replies: 100
Views: 8737

Why are folks still clinging to Mutual Funds vs ETFs?

I've always been a slow adapter, and been somewhat dismissive of ETFs. The wiki and general discussion here has been that the choice between mutual funds and ETFs doesn't make much difference, and that there's no meaningful cost difference between ETFs and admiral shares. I kind of accepted that and...
by Outer Marker
Mon Dec 07, 2020 11:21 am
Forum: Personal Finance (Not Investing)
Topic: Hate My Job
Replies: 239
Views: 20987

Re: Hate My Job

My property taxes are $4k a year(Staten Island, New York) How wedded are you to staying in New York? NY State in general and NYC in particular are among the most expensive and least tax friendly for retirees. Your budget would go a lot further in NH, AZ or FL. I love NYC, but would only consider re...
by Outer Marker
Mon Dec 07, 2020 9:45 am
Forum: Personal Investments
Topic: Why is my pension so terrible?
Replies: 57
Views: 5689

Re: Why is my pension so terrible?

I am 35 years old and work in a casino with a union pension. I just received my monthly benefit estimate after 10 years of service. If I were to quit today, I’d receive roughly $235/month when I reach 65. I don’t have my contract in front of me, but I think the company contributes about $.95 (yes, ...
by Outer Marker
Mon Dec 07, 2020 7:14 am
Forum: Personal Investments
Topic: Keeping up with inflation w/o stocks
Replies: 29
Views: 2487

Re: Keeping up with inflation w/o stocks

Yes, an inflation indexed single premium immediate annuity will do this for you. An inflation indexed SPIA can only do that if it actually exists. They were discontinued by the last company to offer them, The Principal. I am not aware of any available in the US. Do you know of any? Interesting. I w...
by Outer Marker
Mon Dec 07, 2020 1:00 am
Forum: Personal Investments
Topic: Keeping up with inflation w/o stocks
Replies: 29
Views: 2487

Re: Keeping up with inflation w/o stocks

In the past years the stock market has been very generous, and today I have a portfolio that has reached 30x my family needs. I am retired in my low 70s and it is highly unlikely that I will live until my 100s bday. Thus, I wonder if it is possible to keep up with inflation without equity risk? Yes...
by Outer Marker
Mon Dec 07, 2020 12:35 am
Forum: Personal Investments
Topic: Clean up in aisle 3 - hoping for some Bogleheads wisdom...
Replies: 23
Views: 4429

Re: Clean up in aisle 3 - hoping for some Bogleheads wisdom...

Tax Rate: 37% Federal, 5.75% State State of Residence: Maryland Taxable Account – Vanguard Brokerage (70.6% of Total Assets) FIXED INCOME • 5.6% VMFXX -Vanguard Federal Money Market Fund (expense ratio 0.11%) STOCKS • 2.2% DIS -DISNEY WALT CO COM DISNEY • 4.0% AAPL -APPLE INC • 1.9% BRK.B -BERKSHIR...
by Outer Marker
Sun Dec 06, 2020 4:04 pm
Forum: Personal Investments
Topic: What to do with cash that was to be used for down payment on house
Replies: 6
Views: 494

Re: What to do with cash that was to be used for down payment on house

If planning to use the money in the next 12-24 months, I'd keep it in cash. -Bonds are paying next to nothing and have significant interest rate risk if rates rise. -Stock market is frothy and trading at all time highs that is not realistically supported by current earnings. The real estate market m...
by Outer Marker
Sun Dec 06, 2020 1:47 pm
Forum: Personal Investments
Topic: Total Bond vs Guaranteed 3% Account
Replies: 17
Views: 1871

Re: Total Bond vs Guaranteed 3% Account

I’m keeping my fixed income in stable value until BND is paying more than 3% sec yield for two consecutive quarters. Then I’ll think about moving some of it back. No point in taking interest rate risk to be earning less than stable value is paying.
by Outer Marker
Sun Dec 06, 2020 9:29 am
Forum: Personal Investments
Topic: 50 year old with 95% equity exposure - might be forced out of job
Replies: 48
Views: 4359

Re: 50 year old with 95% equity exposure - might be forced out of job

Definitely a good time to re-assess your asset allocation and dial it back a bit. I'm 54 and plan to maintain 70/30 forever. The bonds were a comfort back in March and provided a very profitable rebalancing bonus.
by Outer Marker
Sun Dec 06, 2020 9:00 am
Forum: Personal Investments
Topic: 401k - no Total Bond fund available
Replies: 20
Views: 1411

Re: 401k - no Total Bond fund available

[quote=BitDude post_id=5640680 time=1607245416 user_id=60630 I wouldn't have any big expectations about the bond fund returns. They did great last year because interest rates plummeted. Going forward, they're likely to return 0% real or less. I hold them for risk management. When stocks are plummet...
by Outer Marker
Sun Dec 06, 2020 5:13 am
Forum: Personal Investments
Topic: Reasons NOT to tax loss harvest?
Replies: 42
Views: 5842

Re: Reasons NOT to tax loss harvest?

The account only holds one S&P 500 fund (SPY) and has obviously lost a bunch of money this year. Are you sure ? SPY is up 15.48% YTD, so I don't see how there could be anything to TLH. The time to do it was back in March. If you didn't do it then, there are no losses to realize this year. https...
by Outer Marker
Sat Dec 05, 2020 1:35 pm
Forum: Personal Investments
Topic: Is it Time to Rebalance
Replies: 19
Views: 2104

Re: Is it Time to Rebalance

In theory, it matters if you are buying stocks in a taxable, but not if you are selling.... But if you sell a stock fund in December, it doesn't matter much. If you wait for the dividend, you pay tax on the dividend, but your capital gain decreases by an amount equal to the dividend. With dividends...
by Outer Marker
Sat Dec 05, 2020 9:54 am
Forum: Personal Investments
Topic: Is it Time to Rebalance
Replies: 19
Views: 2104

Re: Is it Time to Rebalance

GMCZ71 wrote: Sat Dec 05, 2020 8:15 am Dec is dividend month-tax harvesting etc, you should wait and till Jan.
Why does that matter?
by Outer Marker
Sat Dec 05, 2020 4:57 am
Forum: Personal Investments
Topic: Is it Time to Rebalance
Replies: 19
Views: 2104

Re: Is it Time to Rebalance

If a 50/50 allocation is still right for you, the answer is obvious. On the other hand, I don't think there is anything wrong with re-evaluating your AA from time to time. I was 70/30 as an early accumulator; 50/50 after I had "won the game"; and now, back to 70/30 after giving away half i...
by Outer Marker
Fri Dec 04, 2020 9:56 am
Forum: Personal Investments
Topic: Need help making investment decisions after house fire
Replies: 47
Views: 2819

Re: Need help making investment decisions after house fire

That is some astonishingly bad financial advice from the so-called "CFP." Do not go back there, ever, and block his number. Rebuild the house using the insurance proceeds to what you had; don't overbuild a new Taj Mahal. Most policies include "full replacement" value, allowing fo...
by Outer Marker
Thu Dec 03, 2020 8:37 pm
Forum: Personal Investments
Topic: Do I need Bonds in my portfolio? [Portfolio Review Request]
Replies: 111
Views: 9156

Re: Do I need Bonds in my portfolio? [Portfolio Review Request]

^^^ I'll stand on my recommendation to contribute enough to max out the matching in your wife's retirement accounts -- and to divert everything else to your TSP by reducing her tax-deferred savings and increasing yours. You have the better plan with TSP. Try your best to max out your contributions....
by Outer Marker
Thu Dec 03, 2020 4:22 pm
Forum: Personal Investments
Topic: Do I need Bonds in my portfolio? [Portfolio Review Request]
Replies: 111
Views: 9156

Re: Do I need Bonds in my portfolio? [Portfolio Review Request]

P.S. you could actually increase your TSP pre-tax contributions to $675 without impacting your monthly budget at all, since you are paying out $553 in after-tax dollars, but your TSP contributions will be in pre-tax dollars, and therefore "cost" 22% less to contribute from your paycheck. R...
by Outer Marker
Thu Dec 03, 2020 3:55 pm
Forum: Personal Investments
Topic: Do I need Bonds in my portfolio? [Portfolio Review Request]
Replies: 111
Views: 9156

Re: Do I need Bonds in my portfolio? [Portfolio Review Request]

I submitted the paperwork to roll my TDA IRA and ROTH back to my TSP and I'm going to pay off that stupid time-share! Instead of paying the loan part of the time-share $553.22 every month at 12.49% I think I will up my TSP contribution to near the same amount. Does that sound like a good idea? Yes,...
by Outer Marker
Wed Dec 02, 2020 6:39 pm
Forum: Personal Investments
Topic: Do I need Bonds in my portfolio? [Portfolio Review Request]
Replies: 111
Views: 9156

Re: Do I need Bonds in my portfolio? [Portfolio Review Request]

^^^ I'll stand on my recommendation to contribute enough to max out the matching in your wife's retirement accounts -- and to divert everything else to your TSP by reducing her tax-deferred savings and increasing yours. You have the better plan with TSP. Try your best to max out your contributions.
by Outer Marker
Wed Dec 02, 2020 3:49 pm
Forum: Personal Investments
Topic: Do I need Bonds in my portfolio? [Portfolio Review Request]
Replies: 111
Views: 9156

Re: Do I need Bonds in my portfolio? [Portfolio Review Request]

JMK909er wrote: Wed Dec 02, 2020 1:14 pm Here is an example of a home in AZ http://tiny.cc/6ny5tz
Nice!