Search found 142 matches

by mikejuss
Wed Nov 04, 2020 10:20 am
Forum: Investing - Theory, News & General
Topic: U.S. stocks continue to soar!
Replies: 10244
Views: 813682

Re: U.S. stocks continue to soar!

Wow--I thought investors hated uncertainty. It doesn't look like that's true this morning. Now economists need to come up with another sketchy rule of thumb for what moves markets. This all proves Jack Bogle--and the index-investing approach--right yet again. Nobody knows nothing indeed.
by mikejuss
Tue Nov 03, 2020 3:16 pm
Forum: Investing - Theory, News & General
Topic: U.S. stocks continue to soar!
Replies: 10244
Views: 813682

Re: U.S. stocks continue to soar!

yea I keep asking myself repeatedly If I should dip some money into the market today (90 mins left) or wait until tomorrow cause markets hates uncertainty You and me both. As of now, my gut says we'll know who wins the election tonight and we'll have certainty tomorrow Don’t forget about the balanc...
by mikejuss
Tue Nov 03, 2020 3:03 pm
Forum: Investing - Theory, News & General
Topic: U.S. stocks continue to soar!
Replies: 10244
Views: 813682

Re: U.S. stocks continue to soar!

yea I keep asking myself repeatedly If I should dip some money into the market today (90 mins left) or wait until tomorrow cause markets hates uncertainty You and me both. As of now, my gut says we'll know who wins the election tonight and we'll have certainty tomorrow I wouldn't (and didn't) do it...
by mikejuss
Sat Oct 31, 2020 11:37 pm
Forum: Personal Investments
Topic: Early retirement thoughts and ideas - could use all the advice i can get
Replies: 35
Views: 4594

Re: Early retirement thoughts and ideas - could use all the advice i can get

geerhardusvos wrote: Sat Oct 31, 2020 11:33 pm
mikejuss wrote: Sat Oct 31, 2020 11:28 pm You support an individual-stock approach to investing?
No, but the OP has already received feedback about that. Have you seen my signature?
OP has neither VTSAXed nor chilled--and isn't going to reply our to-and-fros. :sharebeer G'night!
by mikejuss
Sat Oct 31, 2020 11:28 pm
Forum: Personal Investments
Topic: Early retirement thoughts and ideas - could use all the advice i can get
Replies: 35
Views: 4594

Re: Early retirement thoughts and ideas - could use all the advice i can get

I think i save about 5k or so a month, not including the 19500 + 6000 a year i put away for 401k/ROTH. My estimates are pretty conservative. My mortgage is only 2400 and taxes (included) are 800 a month. I'm counting 700 a month for food when we actually spend only 400 or so. Same with a lot of oth...
by mikejuss
Sat Oct 31, 2020 11:19 pm
Forum: Personal Investments
Topic: Early retirement thoughts and ideas - could use all the advice i can get
Replies: 35
Views: 4594

Re: Early retirement thoughts and ideas - could use all the advice i can get

I think i save about 5k or so a month, not including the 19500 + 6000 a year i put away for 401k/ROTH. My estimates are pretty conservative. My mortgage is only 2400 and taxes (included) are 800 a month. I'm counting 700 a month for food when we actually spend only 400 or so. Same with a lot of oth...
by mikejuss
Fri Oct 30, 2020 7:37 pm
Forum: Personal Investments
Topic: Early retirement thoughts and ideas - could use all the advice i can get
Replies: 35
Views: 4594

Re: Early retirement thoughts and ideas - could use all the advice i can get

I don't mean to be impertinent, but I'm confused: if you make $170,000 and live in Virginia, a back-of-the-envelope calculation suggests your monthly take-home pay is about $9,000. If your monthly expenses are $7,000, how have you accumulated over $2,000,000 in tax-advantaged accounts? Do you have ...
by mikejuss
Fri Oct 30, 2020 7:01 pm
Forum: Personal Investments
Topic: Early retirement thoughts and ideas - could use all the advice i can get
Replies: 35
Views: 4594

Re: Early retirement thoughts and ideas - could use all the advice i can get

I don't mean to be impertinent, but I'm confused: if you make $170,000 and live in Virginia, a back-of-the-envelope calculation suggests your monthly take-home pay is about $9,000. If your monthly expenses are $7,000, how have you accumulated over $2,000,000 in tax-advantaged accounts? Do you have ...
by mikejuss
Fri Oct 30, 2020 5:27 pm
Forum: Personal Investments
Topic: Early retirement thoughts and ideas - could use all the advice i can get
Replies: 35
Views: 4594

Re: Early retirement thoughts and ideas - could use all the advice i can get

I don't mean to be impertinent, but I'm confused: if you make $170,000 and live in Virginia, a back-of-the-envelope calculation suggests your monthly take-home pay is about $9,000. If your monthly expenses are $7,000, how have you accumulated over $2,000,000 in tax-advantaged accounts? Do you have a...
by mikejuss
Fri Oct 30, 2020 11:11 am
Forum: Personal Investments
Topic: How many funds should I have in my Roth IRA?
Replies: 22
Views: 2144

Re: How many funds should I have in my Roth IRA?

I was glad to read your post, lakpr, and I agree with it. But what do you say to those who--under the aegis of tax efficiency--suggest holding only bonds in tax advantaged accounts, such as a Roth IRA? It's never really made sense to me--precisely because, being tax free, the Roth IRA account seems...
by mikejuss
Fri Oct 30, 2020 9:10 am
Forum: Personal Investments
Topic: How many funds should I have in my Roth IRA?
Replies: 22
Views: 2144

Re: How many funds should I have in my Roth IRA?

Taijutsu_Expert, Welcome to the forum. I happen to disagree with the advice that previous posters offered: to buy more Freedom Index 2050 fund. The basic premise of a Roth IRA account is that, in exchange for paying taxes here and now, all future growth is tax free (well, except for the pesky requi...
by mikejuss
Thu Oct 29, 2020 10:19 pm
Forum: Personal Investments
Topic: Rebalancing with oversized taxable
Replies: 8
Views: 742

Re: Rebalancing with oversized taxable

This may be a simple question, but looking for some direction. Our taxable account has grown much larger than the tax advantaged accounts. We max our tax-advantaged accounts out early in the year and our only option is to invest the rest in taxable, which ends up being a significant amount. We've b...
by mikejuss
Thu Oct 29, 2020 1:35 pm
Forum: Personal Finance (Not Investing)
Topic: Life insurance as legacy
Replies: 65
Views: 3250

Re: Life insurance as legacy

Thank you for this thorough reply. I would like to make a distinction: I'm not arguing that the cash component of whole life insurance is a retirement investment superior to a simple brokerage account (let alone a tax-advantaged 401(k) or IRA). But is whole life insurance a bad choice strictly as a...
by mikejuss
Thu Oct 29, 2020 12:54 pm
Forum: Personal Finance (Not Investing)
Topic: Life insurance as legacy
Replies: 65
Views: 3250

Re: Life insurance as legacy

Thank you for this thorough reply. I would like to make a distinction: I'm not arguing that the cash component of whole life insurance is a retirement investment superior to a simple brokerage account (let alone a tax-advantaged 401(k) or IRA). But is whole life insurance a bad choice strictly as a...
by mikejuss
Thu Oct 29, 2020 11:51 am
Forum: Personal Finance (Not Investing)
Topic: Life insurance as legacy
Replies: 65
Views: 3250

Re: Life insurance as legacy

See my notes below. Thank you for this information. Is the below outline correct? Traditional 401(k) Account holder • RMDs starting at age 72 years • Taxes at distribution: Ordinary-income rate Heir • RMDs within 10 years of inheritance - right idea but wrong terminology. "RMDs" refer to ...
by mikejuss
Thu Oct 29, 2020 11:50 am
Forum: Personal Finance (Not Investing)
Topic: Life insurance as legacy
Replies: 65
Views: 3250

Re: Life insurance as legacy

My apologies for throwing out a question that is probably beneath most of the experts on this board, but I'm trying to learn more about how life insurance works. Specifically, is there any sense in purchasing life insurance as a means of leaving a legacy to one's children? It is my (perhaps rickety...
by mikejuss
Thu Oct 29, 2020 11:34 am
Forum: Personal Finance (Not Investing)
Topic: Life insurance as legacy
Replies: 65
Views: 3250

Re: Life insurance as legacy

Investments get a step up in basis at death - so there is no tax on taxable investments, assets at death. Life insurance companies are not stupid - they price these policies to make a profit and the money is basically in bonds so you know the return is basically low. Insure against a risk, not as a...
by mikejuss
Thu Oct 29, 2020 10:31 am
Forum: Personal Finance (Not Investing)
Topic: Life insurance as legacy
Replies: 65
Views: 3250

Re: Life insurance as legacy

Rex66 wrote: Thu Oct 29, 2020 10:30 am If it didn’t pay out more than face value then the return is a little under 2%.
That's assuming you know what the premiums are and how long they were paid for.
by mikejuss
Thu Oct 29, 2020 10:07 am
Forum: Personal Finance (Not Investing)
Topic: Life insurance as legacy
Replies: 65
Views: 3250

Re: Life insurance as legacy

Thank you; this is very helpful. I've seen the cash element of whole life insurance demonized on this board, and I get why it's bad: high fees and expense ratios and bad fund selections. But leaving that out of the equation, if one buys a $1 million whole life policy at 60, and the yearly premium i...
by mikejuss
Thu Oct 29, 2020 8:59 am
Forum: Personal Finance (Not Investing)
Topic: Life insurance as legacy
Replies: 65
Views: 3250

Re: Life insurance as legacy

Specifically, is there any sense in purchasing life insurance as a means of leaving a legacy to one's children? If your desire is to leave a certain dollar amount (like $1 million) to your children, the only way to be absolutely sure that you’ll achieve your desire is to buy permanent life insuranc...
by mikejuss
Thu Oct 29, 2020 8:53 am
Forum: Personal Finance (Not Investing)
Topic: Life insurance as legacy
Replies: 65
Views: 3250

Re: Life insurance as legacy

Investments get a step up in basis at death - so there is no tax on taxable investments, assets at death. Life insurance companies are not stupid - they price these policies to make a profit and the money is basically in bonds so you know the return is basically low. Insure against a risk, not as a...
by mikejuss
Thu Oct 29, 2020 12:31 am
Forum: Personal Finance (Not Investing)
Topic: Life insurance as legacy
Replies: 65
Views: 3250

Re: Life insurance as legacy

Your results will vary depending on what annual interest/gain rate you choose. The rate you choose may not accurately reflect your actual investment results. I choose 9%, annual compounding, I should have disclosed it. So, 9% seems to be reachable. Hmm--9% seems kinda high. So one can earn a roughl...
by mikejuss
Thu Oct 29, 2020 12:29 am
Forum: Personal Finance (Not Investing)
Topic: Life insurance as legacy
Replies: 65
Views: 3250

Re: Life insurance as legacy

I haven't run the numbers myself but I recall that in Beyond the Grave: The Right Way and the Wrong Way of Leaving Money To Your Children the authors recommended life insurance in many situations for people leaving a legacy. I think their argument was that it was similar to "buying at wholesal...
by mikejuss
Thu Oct 29, 2020 12:24 am
Forum: Personal Finance (Not Investing)
Topic: Life insurance as legacy
Replies: 65
Views: 3250

Re: Life insurance as legacy

I...If I were to invest $600/mo for 30 yrs, I would have $989,374.88. So, it doesn't seem to make sense to pay for Whole Life because you'll pay more than you'll get in benefits. https://www.investor.gov/financial-tools-calculators/calculators/compound-interest-calculator Your results will vary dep...
by mikejuss
Thu Oct 29, 2020 12:05 am
Forum: Personal Finance (Not Investing)
Topic: Life insurance as legacy
Replies: 65
Views: 3250

Re: Life insurance as legacy

I...If I were to invest $600/mo for 30 yrs, I would have $989,374.88. So, it doesn't seem to make sense to pay for Whole Life because you'll pay more than you'll get in benefits. https://www.investor.gov/financial-tools-calculators/calculators/compound-interest-calculator Your results will vary dep...
by mikejuss
Wed Oct 28, 2020 11:49 pm
Forum: Personal Finance (Not Investing)
Topic: Life insurance as legacy
Replies: 65
Views: 3250

Re: Life insurance as legacy

Can term life insurance be extended beyond the term? Or buy a 30-year term at the age of 65? Not many people live to 95.

And would the higher premiums paid for whole life insurance result in a dramatically lower yield? I'm unclear on this.
by mikejuss
Wed Oct 28, 2020 11:25 pm
Forum: Personal Finance (Not Investing)
Topic: Life insurance as legacy
Replies: 65
Views: 3250

Life insurance as legacy

My apologies for throwing out a question that is probably beneath most of the experts on this board, but I'm trying to learn more about how life insurance works. Specifically, is there any sense in purchasing life insurance as a means of leaving a legacy to one's children? It is my (perhaps rickety)...
by mikejuss
Tue Oct 20, 2020 9:37 am
Forum: Personal Finance (Not Investing)
Topic: Solo 401(k) eligibility for consultant receiving W2 for hourly rate?
Replies: 18
Views: 1026

Re: Solo 401(k) eligibility for consultant receiving W2 for hourly rate?

My concern is that, when I researched this issue on the Bogleheads forums, there are a few posts where users implied that only consultants who receive a 1099 are eligible to have solo 401(k)s, and anyone who receives a W2 cannot have a solo 401(k) for that income, even if the W2 is received as a co...
by mikejuss
Fri Oct 16, 2020 1:08 pm
Forum: Personal Finance (Not Investing)
Topic: Share your net worth progression
Replies: 1999
Views: 485629

Re: Share your net worth progression

Loooong-time lurker, first-time poster! Don't ask me why today is finally the day. Background: Two professional incomes/3 kids; includes home equity 2006: -37,000 (partner 1 graduates professional school) 2007: -20,000 (partner 2 graduates professional school) 2008: +70,000 2009: +215,000 2010: +33...
by mikejuss
Fri Oct 16, 2020 12:28 pm
Forum: Personal Finance (Not Investing)
Topic: Share your net worth progression
Replies: 1999
Views: 485629

Re: Share your net worth progression

Loooong-time lurker, first-time poster! Don't ask me why today is finally the day. Background: Two professional incomes/3 kids; includes home equity 2006: -37,000 (partner 1 graduates professional school) 2007: -20,000 (partner 2 graduates professional school) 2008: +70,000 2009: +215,000 2010: +33...
by mikejuss
Fri Oct 16, 2020 11:56 am
Forum: Personal Investments
Topic: How to avoid behavioral errors in a taxable account?
Replies: 46
Views: 3655

Re: How to avoid behavioral errors in a taxable account?

In most cases this is not true at all. A life strategy in taxable is fine. It’s fine if you like paying more taxes. Bonds belong in tax advantaged accounts. Not necessarily. You keep giving out terrible advice. My responses align with the tax code for dividends and the Boglehead wiki and Boglehead ...
by mikejuss
Fri Oct 16, 2020 11:19 am
Forum: Personal Investments
Topic: How to avoid behavioral errors in a taxable account?
Replies: 46
Views: 3655

Re: How to avoid behavioral errors in a taxable account?

Hello totality Tinkering is an issue especially once the account grows in size. Honestly i am in the cap for “One fund portfolio across all accounts” for simplicity reasons. And it would make it super simple to manage the account for heirs. Have you gone over this thread? https://www.bogleheads.org...
by mikejuss
Wed Oct 14, 2020 8:59 am
Forum: Investing - Theory, News & General
Topic: What happens after the risk shows up?
Replies: 41
Views: 4313

Re: What happens after the risk shows up?

The problem with this very good advice is that YOU CAN’T KNOW THAT IN ADVANCE. “Pick an asset allocation that you’ll be comfortable with in 20 years no matter what happens” Hmm, let’s see what asset allocation would 20 years ago me have been comfortable with through to today? ~20 years ago me worki...
by mikejuss
Tue Oct 13, 2020 9:05 pm
Forum: Investing - Theory, News & General
Topic: Which asset class will be the best in the 2020s?
Replies: 48
Views: 3035

Re: Which asset class will be the best in the 2020s?

It's the year 2022...

People are still the same.

They'll do anything to get what they need.

And they need SOYLENT GREEN.
by mikejuss
Tue Oct 13, 2020 7:49 pm
Forum: Investing - Theory, News & General
Topic: What happens after the risk shows up?
Replies: 41
Views: 4313

Re: What happens after the risk shows up?

The problem with this very good advice is that YOU CAN’T KNOW THAT IN ADVANCE. “Pick an asset allocation that you’ll be comfortable with in 20 years no matter what happens” Hmm, let’s see what asset allocation would 20 years ago me have been comfortable with through to today? ~20 years ago me worki...
by mikejuss
Tue Oct 13, 2020 6:31 pm
Forum: Investing - Theory, News & General
Topic: What happens after the risk shows up?
Replies: 41
Views: 4313

Re: What happens after the risk shows up?

But his lived experience was 2.1% compounded annually for 18 years, and -4.1% compounded annually for ten years (being 1999-2009 when he finally got out). What 18 year period did he only get 2.1%? Stock market returned around 5% a year from 1991 - 2009 (assuming one got out on March 9th, the absolu...
by mikejuss
Tue Oct 13, 2020 12:09 pm
Forum: Investing - Theory, News & General
Topic: What happens after the risk shows up?
Replies: 41
Views: 4313

Re: What happens after the risk shows up?

What do you mean when you say your father was "generally persuaded by low-cost mutual funds"? What funds was he invested in? What was his asset allocation? I try to be realistic about the yields on index funds, but the numbers above seem low for an indexed portfolio. Was you father at lea...
by mikejuss
Tue Oct 13, 2020 11:18 am
Forum: Investing - Theory, News & General
Topic: What happens after the risk shows up?
Replies: 41
Views: 4313

Re: What happens after the risk shows up?

Thank you everyone for all your experiences and responses. I wonder how much survivor's bias there is on these forums. Meaning, how many people capitulate during a downturn which means they get out of investing AND they stop posting in places like this. Some of what's informing my questions is my p...
by mikejuss
Sun Oct 11, 2020 1:16 pm
Forum: Investing - Theory, News & General
Topic: How long after starting investing, did you start to be happy about the power of compounding?
Replies: 186
Views: 20258

Re: How long after starting investing, did you start to be happy about the power of compounding?

I'm guessing the question is basically a "when will i see the fruits of my patience" type of question that will hopefully encourage us to persevere through the lean times (when we don't yet observe compounding.) I'm curious if there are steps we can take to shorten the time so that we obs...
by mikejuss
Fri Oct 09, 2020 2:14 pm
Forum: Personal Investments
Topic: Feedback on Aggressive Portfolio (Late 20s)
Replies: 27
Views: 2152

Re: Feedback on Aggressive Portfolio (Late 20s)

Hi, KlangFool. You make many interesting points here with which I'm inclined to agree. But they raise a question: at what particular age-savings nexus do you think a person can dial down stock exposure? Is there a general rule you recommend irrespective of how much a person wants to have in the ban...
by mikejuss
Fri Oct 09, 2020 11:53 am
Forum: Personal Investments
Topic: Feedback on Aggressive Portfolio (Late 20s)
Replies: 27
Views: 2152

Re: Feedback on Aggressive Portfolio (Late 20s)

Portfolio size: $1.1M, combined with my spouse. Expect to add ~$250K in contributions in 2021 housen, I am going to play devil advocate here. Why do you need to be aggressive? Can you afford to be aggressive? At your portfolio size and annual saving level, it won't matter much what your AA is. If y...
by mikejuss
Thu Oct 08, 2020 2:08 pm
Forum: Personal Investments
Topic: Mixed 401(k) Rollover
Replies: 6
Views: 385

Re: Mixed 401(k) Rollover

retiredjg wrote: Thu Oct 08, 2020 2:06 pm
mikejuss wrote: Thu Oct 08, 2020 2:02 pm An ancillary question: if one moves Roth money from a 401(k) to an IRA, is there a cap on the amount (ie, no more than $6,000)?
No. The cap of $6k applies to contributions. This rollover is not a contribution for the purposes of that limit.
Thanks!
by mikejuss
Thu Oct 08, 2020 2:02 pm
Forum: Personal Investments
Topic: Mixed 401(k) Rollover
Replies: 6
Views: 385

Re: Mixed 401(k) Rollover

Hello, Bogleheads. I have a friend who left a job where she had a 401(k) to which she contributed both traditional (pretax) and Roth (posttax) money. She now would like to roll over the entirety of the old 401(k) into the one at her new job. Is it at all advisable for her to peel off the Roth contr...
by mikejuss
Wed Oct 07, 2020 9:07 pm
Forum: Personal Investments
Topic: Mixed 401(k) Rollover
Replies: 6
Views: 385

Re: Mixed 401(k) Rollover

Hello, Bogleheads. I have a friend who left a job where she had a 401(k) to which she contributed both traditional (pretax) and Roth (posttax) money. She now would like to roll over the entirety of the old 401(k) into the one at her new job. Is it at all advisable for her to peel off the Roth contr...
by mikejuss
Wed Oct 07, 2020 7:28 pm
Forum: Personal Investments
Topic: Mixed 401(k) Rollover
Replies: 6
Views: 385

Mixed 401(k) Rollover

Hello, Bogleheads. I have a friend who left a job where she had a 401(k) to which she contributed both traditional (pretax) and Roth (posttax) money. She now would like to roll over the entirety of the old 401(k) into the one at her new job. Is it at all advisable for her to peel off the Roth contri...
by mikejuss
Tue Oct 06, 2020 9:53 am
Forum: Personal Investments
Topic: Taxable Account Fund Selection
Replies: 47
Views: 2567

Re: Taxable Account Fund Selection

There is a subtlety to this that I can't quite wrap my head around: income derived from a 401(k) is taxed at an ordinary rate, income derived from a brokerage account is taxed as a long-term capital gain rate, and income derived from a Roth IRA is never taxed. It stands to reason that one would wan...
by mikejuss
Tue Oct 06, 2020 9:05 am
Forum: Personal Investments
Topic: Taxable Account Fund Selection
Replies: 47
Views: 2567

Re: Taxable Account Fund Selection

Starting my taxable at Fidelity. I am 34. Every other account IRA & 401k are being maxed. I am 100% equities in these accounts. I’d like to start moving some money into bonds. Right now I’m thinking of selecting the following funds: FSKAX - Total Market FMBIX - National Muni FUAMX - Intermediat...
by mikejuss
Mon Oct 05, 2020 11:43 pm
Forum: Personal Investments
Topic: Taxable Account Fund Selection
Replies: 47
Views: 2567

Re: Taxable Account Fund Selection

One thing you mentioned jumped out at me: "Assuming that your tax situation favors stocks over bonds in a taxable account." What considerations would go into such an assumption (eg, asset allocation, gross adjusted income, etc.)? The tax costs depend on your tax rates, and the tax cost of...
by mikejuss
Sat Oct 03, 2020 6:19 pm
Forum: Personal Investments
Topic: Taxable Account Fund Selection
Replies: 47
Views: 2567

Re: Taxable Account Fund Selection

Hmm--and what if one has, say, $100,000 he'd like to deposit in a brokerage account? Given that the maximum allowed in a traditional 401(k) is $19,500 a year, and the maximum in a Roth IRA is $6,000, there may be no way to avoid--depending on one's asset allocation--not buying at least some bonds w...
by mikejuss
Sat Oct 03, 2020 5:10 pm
Forum: Personal Investments
Topic: Taxable Account Fund Selection
Replies: 47
Views: 2567

Re: Taxable Account Fund Selection

Yes, it is better to have very tax-efficient stock index funds in a taxable account rather than muni bond funds. In the Wiki link I posted earlier "Tax-efficient Fund Placement", see Table 1 on tax costs. Although actively managed Baird Aggregate Bond Fund Institutional ( BAGIX ) ER 0.30%...