Search found 283 matches

by hirlaw
Sat Apr 06, 2019 9:32 am
Forum: Investing - Theory, News & General
Topic: The "dividend preference anomaly"
Replies: 183
Views: 8345

Re: The "dividend preference anomaly"

What about reinvesting the dividend rather than taking it in cash?
by hirlaw
Fri Apr 05, 2019 8:29 pm
Forum: Investing - Theory, News & General
Topic: The "dividend preference anomaly"
Replies: 183
Views: 8345

Re: The "dividend preference anomaly"

At least from my experience, most dividend investors do not even realize that the stock price is marked down by the amount of the dividend paid. So, many are not taking this critical fact into account when preferring dividends over selling shares. However, I believe that many, even if they were awar...
by hirlaw
Tue Mar 26, 2019 10:25 am
Forum: Personal Finance (Not Investing)
Topic: Help with law school decision
Replies: 78
Views: 5153

Re: Help with law school decision

I agree with everything Apple44 above said. Going to the most prestigious law schools open up doors unavailable to many other law grads. So, I agree with a preference for UVA, Duke and UT, if she gets in. If she goes to other schools, its fine and she can still grab a great job, but grades, importan...
by hirlaw
Mon Mar 18, 2019 9:01 pm
Forum: Personal Investments
Topic: Vanguard: "Your Account Needs to be Transitioned"
Replies: 27
Views: 4163

Re: Vanguard: "Your Account Needs to be Transitioned"

Does Vanguard continue to provide you with your pre-transition cost basis?
by hirlaw
Sun Mar 10, 2019 4:34 pm
Forum: Personal Investments
Topic: What do you think about GNMA Funds?
Replies: 8
Views: 949

Re: What do you think about GNMA Funds?

I live in a state with no income tax and I believe that they are, in fact, backed by the full & credit of the USA. Maybe you are thinking of Fannie Mae or Freddie Mac?
by hirlaw
Sun Mar 10, 2019 4:26 pm
Forum: Personal Investments
Topic: What do you think about GNMA Funds?
Replies: 8
Views: 949

What do you think about GNMA Funds?

I noticed that the Vanguard GNMA Fund (VFIJX) has a 4-year duration, with a current yield of 3.34%. I was thinking about using this fund as a portion of my after-tax bond portfolio, substituting it for a portion of my short term treasury bond fund (both are AAA rated). Was wondering if anyone had an...
by hirlaw
Thu Mar 07, 2019 12:30 pm
Forum: Personal Finance (Not Investing)
Topic: Do We Need to File State Income Tax Returns?
Replies: 21
Views: 1325

Re: Do We Need to File State Income Tax Returns?

Thank you for all of your help. FYI: My home state, Texas, has no state income tax.
by hirlaw
Thu Mar 07, 2019 10:46 am
Forum: Personal Finance (Not Investing)
Topic: Do We Need to File State Income Tax Returns?
Replies: 21
Views: 1325

Re: Do We Need to File State Income Tax Returns?

I think they just reported the portion of her time working in a particular state? So, one day would be 1/362 of her annual income.
by hirlaw
Thu Mar 07, 2019 10:02 am
Forum: Personal Finance (Not Investing)
Topic: Do We Need to File State Income Tax Returns?
Replies: 21
Views: 1325

Do We Need to File State Income Tax Returns?

Last year, my wife took brief business trips for her job at Megacorp. The company has sent her W-2's reporting 2018 state income for three states: Missouri, New York (NYC), Virginia and Illinois. Each of these reported less than $1,000 of state income. Does anyone know whether we have to file state ...
by hirlaw
Fri Mar 01, 2019 11:15 am
Forum: Personal Finance (Not Investing)
Topic: BH could you live off your SS benefit?
Replies: 141
Views: 7121

Re: BH could you live off your SS benefit?

It would be conceivable for us, but not very pleasant, after certain expenses: Medical/dental Property taxes (very high in our state) Insurance premiums (auto/home/umbrella/flood/etc.) Budget for home maintenance/repairs Budget for auto maintenance/repairs Grocery Pet vet and food Utilities Cell pho...
by hirlaw
Thu Feb 28, 2019 8:36 pm
Forum: Investing - Theory, News & General
Topic: Why does dividend investing not work?
Replies: 147
Views: 13770

Re: Why does dividend investing not work?

Here's the problem with how many investors look at dividends. Let's say that I own a business outright. I transfer $1,000 from that business's checking account to my own personal checking account. Has my net worth increased by this move? No, because I owned the $1,000 the whole time; all I did was ...
by hirlaw
Mon Feb 25, 2019 3:20 pm
Forum: Investing - Theory, News & General
Topic: Short term Treas vs short term corp
Replies: 6
Views: 610

Re: Short term Treas vs short term corp

One issue that has been written about recently is the large percentage of BBB bonds. If the economy hits a bump, some of these BBBs may lose their BBB (investment grade) rating. This would force bond funds and etfs with an investment grade mandate to sell off those bonds, possibly causing quite a pr...
by hirlaw
Thu Feb 21, 2019 5:32 pm
Forum: Personal Investments
Topic: Anyone Using Vanguard Managed Payout Fund (VPGDX)?
Replies: 9
Views: 1469

Re: Anyone Using Vanguard Managed Payout Fund (VPGDX)?

What sort of problems have been reported?
by hirlaw
Thu Feb 21, 2019 3:39 pm
Forum: Personal Investments
Topic: Anyone Using Vanguard Managed Payout Fund (VPGDX)?
Replies: 9
Views: 1469

Anyone Using Vanguard Managed Payout Fund (VPGDX)?

Is anyone using or contemplating using Vanguard Managed Payout Fund (VPGDX) as a portion of their draw down strategy?

Thanks.
by hirlaw
Mon Feb 18, 2019 10:02 pm
Forum: Investing - Theory, News & General
Topic: CAPE 10 and the Financial Crisis
Replies: 7
Views: 705

Re: CAPE 10 and the Financial Crisis

Thanks. But weren't the earnings also down significantly in 2008?
by hirlaw
Mon Feb 18, 2019 9:49 pm
Forum: Investing - Theory, News & General
Topic: CAPE 10 and the Financial Crisis
Replies: 7
Views: 705

CAPE 10 and the Financial Crisis

I seem to remember some past discussion that one of the reasons for the high CAPE 10 ratio is the fact that the 10 year look-back included the financial crisis, thus, severely lowering the "earnings" portion of the ratio.

Are we now past that 10 year period?

Thanks
by hirlaw
Thu Feb 14, 2019 8:02 pm
Forum: US Chapters
Topic: Roll Call for the Retirement Class of 2018!
Replies: 365
Views: 55617

Re: Roll Call for the Retirement Class of 2018!

Very belated posting! My retirement was 1/15/18 at age 62. Long time attorney, now part time tour guide for the local professional baseball team!
by hirlaw
Thu Feb 14, 2019 2:44 pm
Forum: Investing - Theory, News & General
Topic: New Wealthfront Cash account 2.24% w/ FDIC up to 1mm. Anything similar?
Replies: 21
Views: 2031

Re: New Wealthfront Cash account 2.24% w/ FDIC up to 1mm. Anything similar?

Vanguard Treasury Money Market (VUSXX) yields 2.33% and is as safe (or safer) than FDIC insurance.
by hirlaw
Mon Feb 11, 2019 1:08 pm
Forum: Personal Finance (Not Investing)
Topic: Tax law expiring in 2025
Replies: 22
Views: 2075

Re: Tax law expiring in 2025

I believe some are converting pre-tax IRAs to Roth IRAs. There are several online calculators available to see if this strategy is appropriate in your situation.
by hirlaw
Thu Jan 31, 2019 11:30 am
Forum: Personal Investments
Topic: Lawyer looking for retirement strategy, etc. advice
Replies: 15
Views: 1582

Re: Lawyer looking for retirement strategy, etc. advice

Yet another fellow lawyer here: I retired from private practice last year at 62. Here are some observations. I am financially conservative by nature, so please consider that when reviewing: Disability/Life Insurance : As sole breadwinner, you should have adequate disability and life insurance. My St...
by hirlaw
Tue Jan 29, 2019 9:18 pm
Forum: Investing - Theory, News & General
Topic: VMVFX (Global Minimum Volatility) as core equity holding. Your opinion?
Replies: 154
Views: 11259

Re: VMVFX (Global Minimum Volatility) as core equity holding. Your opinion?

I own it, but not a large portion of my portfolio. Unfortunately, I made the mistake of putting it in a taxable account. I like the fund, but beware of the tax inefficiency.
by hirlaw
Thu Jan 24, 2019 8:09 pm
Forum: Personal Investments
Topic: Buy pacific gas and electric?
Replies: 43
Views: 4134

Re: Buy pacific gas and electric?

Unless you know how they are treating equity in the Chapter 11 Plan of Reorganization, you will be blindly buying into a world where equity (which is on the bottom of the bankruptcy distribution hierarchy) is usually cancelled out. Your odds would be better if you go to Vegas and put your money down...
by hirlaw
Tue Jan 22, 2019 11:34 pm
Forum: Investing - Theory, News & General
Topic: The Section 199A Tax Benefits Of REITs Over Direct Real Estate Investments at Kitces.com by Jeffrey Levine
Replies: 36
Views: 4334

Re: The Section 199A Tax Benefits Of REITs Over Direct Real Estate Investments at Kitces.com by Jeffrey Levine

One issue may be that Vanguard recently changed its "REIT" funds/ETFs to allow them to hold non-REIT real estate equities. I suppose the fund will issue some type of statement breaking out the REIT vs. non-REIT dividends?
by hirlaw
Sun Jan 20, 2019 10:48 pm
Forum: Personal Consumer Issues
Topic: Paying thousands per ticket to attend the NFL Super Bowl?
Replies: 138
Views: 6724

Re: Paying thousands per ticket to attend the NFL Super Bowl?

Absolutely! If the Texans were in the Super Bowl, I would be there. I have season tickets and have suffered through too many seasons to not be there.
I was at the 2017 World Series and flew my son in to go with me. One of our best experiences! But I am a sports nut. We all have our priorities!
by hirlaw
Wed Jan 16, 2019 12:18 pm
Forum: Personal Finance (Not Investing)
Topic: Genworth premium increase
Replies: 23
Views: 2031

Re: Genworth premium increase

hirlaw wrote: ↑ Tue Jan 15, 2019 8:51 pm A big issue with Genworth is its future solvency. This is a major concern with all LTC policies. There has been a mass exodus of companies offering such policies, and there's no guarantee that the one you select will be there in the future. This is much more...
by hirlaw
Tue Jan 15, 2019 7:51 pm
Forum: Personal Finance (Not Investing)
Topic: Genworth premium increase
Replies: 23
Views: 2031

Re: Genworth premium increase

A big issue with Genworth is its future solvency.
by hirlaw
Sat Jan 12, 2019 1:50 pm
Forum: Personal Finance (Not Investing)
Topic: Long term care insurance policy
Replies: 140
Views: 4674

Re: Long term care insurance policy

We have two Genworth LTC policies that we purchased over 10 years ago. If you are considering a Genworth policy, you will want to carefully research Genworth's current financial situation prior to purchase.
by hirlaw
Wed Dec 19, 2018 10:18 am
Forum: Personal Investments
Topic: Help with Brokered CD's vs. Direct Purchase CD's
Replies: 11
Views: 817

Help with Brokered CD's vs. Direct Purchase CD's

I am trying to decide between a 5-year CD directly from Ally Bank vs. a brokered 5-year CD at Fidelity. The brokered CD has a higher rate. If interest rates were to rise substantially in the future, I might want to break the CD. I can determine the Ally CD's surrender penalty. But, can anyone tell m...
by hirlaw
Thu Dec 13, 2018 4:30 pm
Forum: Personal Investments
Topic: Purchasing New Issue CDs at Fidelity
Replies: 2
Views: 323

Re: Purchasing New Issue CDs at Fidelity

Thank you!
by hirlaw
Thu Dec 13, 2018 3:43 pm
Forum: Personal Investments
Topic: Purchasing New Issue CDs at Fidelity
Replies: 2
Views: 323

Purchasing New Issue CDs at Fidelity

Question about purchasing new issue CDs at Fidelity Brokerage. Does the investor receive the yield stated in the new issue list or will the yield be adjusted to the market rate existing on the settlement date?
by hirlaw
Sun Nov 25, 2018 11:37 pm
Forum: Personal Investments
Topic: Roth Conversion
Replies: 50
Views: 3294

Re: Roth Conversion

I understand that your tax rate may be higher when you are over 70, especially with RMD. But when you convert, aren't you also losing the investment earnings you could have received on the funds you used to pay taxes under the conversion?
by hirlaw
Sun Nov 18, 2018 7:45 pm
Forum: Personal Investments
Topic: Current Retirees: Do you touch your principal?
Replies: 79
Views: 8445

Current Retirees: Do you touch your principal?

Curious to hear from current retirees as to whether they live off of interest and dividends (plus social security, rental income, pensions) or also withdraw from the principal/capital of their portfolio to meet your spending needs.
by hirlaw
Fri Nov 16, 2018 11:00 am
Forum: Investing - Theory, News & General
Topic: Vanguard's Quantitative Equity Group Losing Talent
Replies: 61
Views: 4486

Re: Vanguard's Quantitative Equity Group Losing Talent

Vanguard Global Minimum Volatility Fund VMNVX has done a nice job so far given its mandate.

Its two managers, Anatoly Shtekhman and Fei Xu, do not appear to be among those departing Vanguard.
by hirlaw
Fri Nov 02, 2018 7:07 pm
Forum: Personal Consumer Issues
Topic: Pet Insurance Recommendations?
Replies: 11
Views: 1004

Re: Pet Insurance Recommendations?

Why are you getting pet insurance? Have you run the numbers? Are there good ones today? My previous dog, a Shih Tzu, lived to be 15 years old. He had Cushings Disease which required medication costing about $300/month. Also, he had an eye condition requiring constant eye drops to control. Along the...
by hirlaw
Fri Nov 02, 2018 1:53 pm
Forum: Personal Investments
Topic: CD vs. Deferred Fixed Annuity
Replies: 13
Views: 1449

Re: CD vs. Deferred Fixed Annuity

Thank you!
by hirlaw
Fri Nov 02, 2018 1:50 pm
Forum: Personal Consumer Issues
Topic: Pet Insurance Recommendations?
Replies: 11
Views: 1004

Pet Insurance Recommendations?

I am considering buying pet insurance for our 3 year old dog. Does anyone have any recommendations (or bad experiences) with a particular insurer?

Thanks!
by hirlaw
Thu Nov 01, 2018 7:51 pm
Forum: Personal Finance (Not Investing)
Topic: Extreme credit card debt
Replies: 37
Views: 4412

Re: Extreme credit card debt

Visit an experienced bankruptcy attorney to know your options. There is often no charge for the initial consultation. Also, be aware that "settling" a debt outside of bankruptcy may have income tax ramifications. Good luck!
by hirlaw
Thu Nov 01, 2018 6:59 pm
Forum: Personal Investments
Topic: CD vs. Deferred Fixed Annuity
Replies: 13
Views: 1449

Re: CD vs. Deferred Fixed Annuity

Are you sure that the annuity is after taxes?
Nope. Math challenged here. I just input the numbers into the online calculator (the link I posted above). It appeared to be after taxes.
by hirlaw
Thu Nov 01, 2018 3:39 pm
Forum: Personal Investments
Topic: CD vs. Deferred Fixed Annuity
Replies: 13
Views: 1449

Re: CD vs. Deferred Fixed Annuity

OP here: The 3 year Mass Mutual Annuity has a 2.9% tax deferred yield. At my tax bracket (24%), that should total $108,955 at maturity, after taxes. A 3 year taxable CD yielding 3.25% totals $107,595 at maturity, after taxes. FYI: I anticipate our income will be lower in 3 years. But these calculati...
by hirlaw
Wed Oct 31, 2018 8:41 pm
Forum: Personal Investments
Topic: CD vs. Deferred Fixed Annuity
Replies: 13
Views: 1449

Re: CD vs. Deferred Fixed Annuity

Thanks for your replies. From the calculators I was using, the tax deferral pushes the rate of return up above comparable CD's. With a AAA rated insurer and being within the limits of my State's insurance guaranty fund, it appears to be a fairly good deal.
by hirlaw
Wed Oct 31, 2018 2:40 pm
Forum: Personal Investments
Topic: CD vs. Deferred Fixed Annuity
Replies: 13
Views: 1449

CD vs. Deferred Fixed Annuity

I was looking at 3 year secondary market CD's offered at Fidelity investing $100k for a taxable account. I noticed that Fidelity currently quotes Mass Mutual 3 year annuities at 2.90%. Unless I am doing my calculations incorrectly, it appears that the annuities offer roughly the same or higher rates...
by hirlaw
Thu Oct 25, 2018 11:34 pm
Forum: Personal Investments
Topic: E-Mini futures to replace Equity ETF in portfolio
Replies: 12
Views: 757

Re: E-Mini futures to replace Equity ETF in portfolio

I have to admit when I first "E-Mini" I thought it was a new electric version of a Mini-Cooper
by hirlaw
Fri Oct 19, 2018 7:18 pm
Forum: Personal Investments
Topic: Asset Allocation heading into retirement
Replies: 8
Views: 1478

Re: Asset Allocation heading into retirement

I have chosen to follow a "bond tent" strategy, where my most conservative allocation (maximum bond percentage) is at retirement. Kitces discusses the concept here: https://www.kitces.com/blog/managing-po ... -red-zone/ ... am 45/55 heading into retirement (in 3 months). I will be spending down my ...
by hirlaw
Thu Oct 18, 2018 9:20 am
Forum: Personal Investments
Topic: What to do with variable annuity at retirement age?
Replies: 8
Views: 599

Re: What to do with variable annuity at retirement age?

Your welcome! I use a yearly 1035 exchange out of my Vanguard Variable Annuity to fund the annual premiums of my LTC policy. This process has become so routine for the insurance company that they have a form online for this very purpose. When Vanguard receives the form, it immediately transfers the ...
by hirlaw
Wed Oct 17, 2018 10:18 am
Forum: Personal Investments
Topic: What to do with variable annuity at retirement age?
Replies: 8
Views: 599

Re: What to do with variable annuity at retirement age?

If she doesn't have long term care insurance, there may be a way to do a 1035 exchange into some type of LTC product. Others here may have more info on that possibility.
by hirlaw
Sun Oct 14, 2018 10:06 am
Forum: Personal Investments
Topic: Have you annuitized some of your money?
Replies: 67
Views: 6033

Re: Have you annuitized some of your money?

I am 62 and have a Vanguard Variable Annuity which we have owned for several years. A few things: - I don't plan to annuitize it until I am closer to 70; - If there is a significant spike in interest rates, I may be tempted to annuitize sooner; - Because the insurance company backing the Vanguard an...
by hirlaw
Sun Oct 14, 2018 9:42 am
Forum: Personal Finance (Not Investing)
Topic: Fidelity "FidSafe" Free online storage of documents - is this safe?
Replies: 49
Views: 8922

Re: Fidelity "FidSafe" Free online storage of documents - is this safe?

U2F, which is probably the gold standard.
A couple of questions about the U2F security key: What if you lose the key? What if you are trying to log on with an IPhone (no USB port)?

Thanks
by hirlaw
Wed Oct 10, 2018 7:27 pm
Forum: Personal Consumer Issues
Topic: Keep a backup hot water heater?
Replies: 104
Views: 5820

Re: Keep a backup hot water heater?

My wife and I go to the gym to shower when the hot water heater has an issue (which is very infrequent). Actually, the showers at the gym are much nicer than ours! :happy
by hirlaw
Wed Oct 10, 2018 6:31 pm
Forum: Personal Investments
Topic: What did you buy today
Replies: 119
Views: 9266

Re: What did you buy today

A new Bosch dishwasher!