Search found 3449 matches

by delamer
Tue Jan 16, 2018 6:03 pm
Forum: Investing - Theory, News & General
Topic: A 4% move in the Dow and S&P in 12 days? Seems odd
Replies: 75
Views: 3750

Re: A 4% move in the Dow and S&P in 12 days? Seems odd

There seems to be a lot of fear on this forum, and that surprises me. When I joined three months ago, I was hoping to find a group of investors who followed the investment philosophies of John Bogle. I was looking for encouragement, yet every day one or more people post that a crash is coming and t...
by delamer
Tue Jan 16, 2018 5:57 pm
Forum: Investing - Help with Personal Investments
Topic: Target Retirement Funds
Replies: 10
Views: 1046

Re: Target Retirement Funds

The other issue not addressed is whether the Target Date funds have the asset allocation that you prefer, and whether you are comfortable with the allocation changing based on the managers’ decisions over time. If you can answer yes to both of those with the Vanguard fund, then no reason to change. ...
by delamer
Tue Jan 16, 2018 5:33 pm
Forum: Investing - Theory, News & General
Topic: A 4% move in the Dow and S&P in 12 days? Seems odd
Replies: 75
Views: 3750

Re: A 4% move in the Dow and S&P in 12 days? Seems odd

There seems to be a lot of fear on this forum, and that surprises me. When I joined three months ago, I was hoping to find a group of investors who followed the investment philosophies of John Bogle. I was looking for encouragement, yet every day one or more people post that a crash is coming and t...
by delamer
Tue Jan 16, 2018 5:31 pm
Forum: Investing - Help with Personal Investments
Topic: Tax implications of rebalancing
Replies: 7
Views: 437

Re: Tax implications of rebalancing

You don’t have to sell your entire stake. If you sell half, for instance, it would reduce your realized gains. Don’t forget that your state may impose a tax on capital gains in addition to the IRS. One thing that will help in the longer run with the taxable account is to discontinue reinvesting your...
by delamer
Tue Jan 16, 2018 5:11 pm
Forum: Investing - Theory, News & General
Topic: A 4% move in the Dow and S&P in 12 days? Seems odd
Replies: 75
Views: 3750

Re: A 4% move in the Dow and S&P in 12 days? Seems odd

There seems to be a lot of fear on this forum, and that surprises me. When I joined three months ago, I was hoping to find a group of investors who followed the investment philosophies of John Bogle. I was looking for encouragement, yet every day one or more people post that a crash is coming and t...
by delamer
Tue Jan 16, 2018 3:04 pm
Forum: Investing - Help with Personal Investments
Topic: Inheritance money
Replies: 5
Views: 745

Re: Inheritance money

I do not see how putting the money in an annuity will her any more control over it than putting it in a savings account. It just means that her husband can get at it in smaller amounts, rather than in a lump sum. In the previous post, you mentioned that she has two adult children who are looking out...
by delamer
Tue Jan 16, 2018 2:40 pm
Forum: Investing - Theory, News & General
Topic: Sell bonds during a market correction to buy cheaper equities?
Replies: 15
Views: 984

Re: Sell bonds during a market correction to buy cheaper equities?

The simple answer is that it makes sense to rebalance your portfolio during/after a stock market correction, in order to maintain your preferred allocation. Say your target asset allocation is 80/20 and it changes to 75/25 when stock prices fall. So you sell enough bonds and buy enough stocks to get...
by delamer
Tue Jan 16, 2018 2:15 pm
Forum: Personal Finance (Not Investing)
Topic: Got raise. Taxes taking 41% of it?
Replies: 24
Views: 2268

Re: Got raise. Taxes taking 41% of it?

Since your pre-tax health insurance premium dropped, your taxable income also went up by the difference between your old and new premiums.

So in addition to the cash raise, you taxable income went up by an another $62.50.
by delamer
Tue Jan 16, 2018 2:08 pm
Forum: Personal Finance (Not Investing)
Topic: Friend Got Laid Off - Advice Needed
Replies: 21
Views: 2116

Re: Friend Got Laid Off - Advice Needed

That’s a shame. Does he have health insurance coverage through COBRA or his severance package? That would be my immediate concern. If not, or if the coverage is very short-term, then he should investigate ACA coverage. The other thing to do is figure out a barebones budget — housing, food, transport...
by delamer
Tue Jan 16, 2018 11:27 am
Forum: Investing - Theory, News & General
Topic: A 4% move in the Dow and S&P in 12 days? Seems odd
Replies: 75
Views: 3750

Re: A 4% move in the Dow and S&P in 12 days? Seems odd

I've read many times here that most of the market's big moves happen in just a handful of days every decade, but haven't been paying attention for long enough to actually witness it. Curious if we are now in one of those periods or if those really big days are typically even more extreme than this?...
by delamer
Tue Jan 16, 2018 11:11 am
Forum: Investing - Help with Personal Investments
Topic: Retirement Critique for my Father
Replies: 11
Views: 1121

Re: Retirement Critique for my Father

Thank you for your comments! FiveK, What I meant was that $114k is total income and it all came from pension. $84.6k was the taxable income. Thanks for catching that, I fixed it in the post. Carl53, This is exactly the type of information I was hoping to get from this community. I just took a look ...
by delamer
Mon Jan 15, 2018 11:58 pm
Forum: Investing - Help with Personal Investments
Topic: Portfolio Advice
Replies: 2
Views: 208

Re: Portfolio Advice

Leaving well enough alone isn’t a good choice. Your funds are expensive and you pay those ERs year after year as long as you hold them. So they are a constant drain on your returns. With the IRAs, you can sell your current funds and move the money into index funds without any tax consequences. There...
by delamer
Mon Jan 15, 2018 11:33 pm
Forum: Personal Finance (Not Investing)
Topic: Understanding the Great Recession Impact
Replies: 44
Views: 3040

Re: Understanding the Great Recession Impact

Someone starting Social Security in 2002 (the year Chuck retired) received a benefit of about $1000 per month if s/he had average earnings and began collecting between age 62 and 65. Chuck was getting about $1200 by 2013, according to the Wired article. So best guess is that he had no more than aver...
by delamer
Mon Jan 15, 2018 10:39 pm
Forum: Personal Finance (Not Investing)
Topic: Understanding the Great Recession Impact
Replies: 44
Views: 3040

Re: Understanding the Great Recession Impact

holding a sufficient supply of high-quality fixed-income is critical. People who say that bonds are as risky as stocks are omitting important details. There ain't nothin' risky about a T-bill. For sure. You know, the discussion about allocation between stocks, bonds and cash is always around % of p...
by delamer
Mon Jan 15, 2018 10:00 pm
Forum: Investing - Help with Personal Investments
Topic: Possible retirement?
Replies: 10
Views: 997

Re: Possible retirement?

You probably can retire, but we need more information.

Do you have estimates for your Social Security benefits? At what age do you plan to take them?

How long does your spouse continue to work?

How will you get health insurance until you are 65, and is the cost reflected in your expense estimates?
by delamer
Mon Jan 15, 2018 7:19 pm
Forum: Personal Finance (Not Investing)
Topic: Budgeting Vs Savings Rate
Replies: 59
Views: 3601

Re: Budgeting Vs Savings Rate

Did your spouse give a reason why he/she wants to budget? I can think of a dozen different reasons from a friend suggesting it to being worried about the future. Maybe understanding why might help. I think this is the key question. If your spouse is concerned about spending in general or your spend...
by delamer
Mon Jan 15, 2018 4:17 pm
Forum: Personal Finance (Not Investing)
Topic: Standard Deduction in 2018
Replies: 10
Views: 1603

Re: Standard Deduction in 2018

I read somewhere that the standard deduction for 2018, for tax returns filed in 2019, for individuals over 65 is actually $26,600 instead of $24,000. Does anyone know if this is true? For individuals who are at least 65 years old (and not blind) the standard deduction will be $13,600. For married c...
by delamer
Mon Jan 15, 2018 4:11 pm
Forum: Personal Finance (Not Investing)
Topic: pay off 401k loan or not?
Replies: 17
Views: 1088

Re: pay off 401k loan or not?

Thanks WoodSpinner. That seems like sounds advice, and I'm kind of leaning towards paying it off (for cashflow reasons) but being somewhat aggressive in paying off the HELOC. My job is stable - I've been at the same company for 23 years. But nobody can predict the future, and I would prefer to avoi...
by delamer
Mon Jan 15, 2018 3:39 pm
Forum: Personal Finance (Not Investing)
Topic: pay off 401k loan or not?
Replies: 17
Views: 1088

Re: pay off 401k loan or not?

Why are you taking out the $75K HELOC? That seems more problematic than the 401(k) loan.
by delamer
Mon Jan 15, 2018 3:35 pm
Forum: Investing - Help with Personal Investments
Topic: Portfolio Advice - Jumping in when the market is high
Replies: 24
Views: 1566

Re: Portfolio Advice - Jumping in when the market is high

First, I'd like to thank everyone - I've spent quite awhile reading through numerous posts and have learned a lot! I would now love other's perspectives on my portfolio. I'm kicking myself for not addressing this sooner and investing with fire until now. I started Roth IRAs for my wife and I severa...
by delamer
Mon Jan 15, 2018 11:26 am
Forum: Investing - Help with Personal Investments
Topic: Mom (86) -Recommended Investments/Assett Allocation
Replies: 6
Views: 608

Re: Mom (86) -Recommended Investments/Assett Allocation

Does she need income from these assets, or to draw them down, to cover her expenses?

Is her concern having money to live on now or building an inheritance for heirs?
by delamer
Mon Jan 15, 2018 11:05 am
Forum: Personal Finance (Not Investing)
Topic: why emergency savings?
Replies: 34
Views: 2235

Re: why emergency savings?

If $20,000 is such a small portion of someone’s liquid assets, then why are they worried about losing a couple percentage points in interest by keeping it in a savings account?
by delamer
Sun Jan 14, 2018 6:04 pm
Forum: Personal Finance (Not Investing)
Topic: Budgeting Vs Savings Rate
Replies: 59
Views: 3601

Re: Budgeting Vs Savings Rate

OP, 1) I have a saving goal. I save X% of my gross income. Then, I spend the rest. 2) I tracked my expense via Quicken. I know where my money goes. But, I do not budget. I do not use that tracking to control my expenses. 3) After my "Pay Yourself First" savings, I debit the rest of my income into m...
by delamer
Sun Jan 14, 2018 5:31 pm
Forum: Personal Finance (Not Investing)
Topic: Budgeting Vs Savings Rate
Replies: 59
Views: 3601

Re: Budgeting Vs Savings Rate

I think budgeting is a personality thing, fine for some folks, not for others. The need for budgeting depends to some degree on one's native tendency to spend money just because it's there. If "shopping" is your idea of a fun recreational activity, then yeah, budgeting could be a good idea for your...
by delamer
Sun Jan 14, 2018 5:19 pm
Forum: Personal Finance (Not Investing)
Topic: Budgeting Vs Savings Rate
Replies: 59
Views: 3601

Re: Budgeting Vs Savings Rate

OP, 1) I have a saving goal. I save X% of my gross income. Then, I spend the rest. 2) I tracked my expense via Quicken. I know where my money goes. But, I do not budget. I do not use that tracking to control my expenses. 3) After my "Pay Yourself First" savings, I debit the rest of my income into m...
by delamer
Sun Jan 14, 2018 5:08 pm
Forum: Investing - Help with Personal Investments
Topic: Roll SGENX to Thrift Savings
Replies: 15
Views: 588

Re: Roll SGENX to Thrift Savings

Earl Lemongrab wrote:
Sun Jan 14, 2018 2:54 pm
delamer wrote:
Sun Jan 14, 2018 11:23 am
The load is the Expense Ratio (ER). In the fund documents, it will be expressed as a percentage such as 1.0%.
No, a load is a fee to buy or sell (depends on the fund) that serves in part as a commission to the account manager.
You are correct. I will delete my original response.
by delamer
Sun Jan 14, 2018 5:05 pm
Forum: Personal Finance (Not Investing)
Topic: Budgeting Vs Savings Rate
Replies: 59
Views: 3601

Re: Budgeting Vs Savings Rate

When someone says they “ spend way too much” to me that is another way of saying they aren’t meeting their savings goals and/or have too much debt. So I am curious as to what exactly your issue is. As I said, I max out all of my tax-advantaged accounts, but that ends up being only about 20% of our ...
by delamer
Sun Jan 14, 2018 11:28 am
Forum: Personal Finance (Not Investing)
Topic: Budgeting Vs Savings Rate
Replies: 59
Views: 3601

Re: Budgeting Vs Savings Rate

We have saved on average probably 20% of gross. We track expenses in Quicken but have never really done a budget long term. ... I hate to say it but I haven’t had much luck in “selling” that to DW, and I’m not without fault myself. I’m probably going to take another swing at it soon because we need...
by delamer
Sun Jan 14, 2018 11:23 am
Forum: Investing - Help with Personal Investments
Topic: Roll SGENX to Thrift Savings
Replies: 15
Views: 588

Re: Roll SGENX to Thrift Savings

Deleted (incorrect)
by delamer
Sat Jan 13, 2018 4:08 pm
Forum: Personal Finance (Not Investing)
Topic: What information should my heirs have just in case
Replies: 12
Views: 589

Re: What information should my heirs have just in case

Assuming you are the one mainly responsible for your family finances, does your wife have all the information that she needs in case you predecease her? My dad had a binder with account lists (including shares, balances, phone numbers), pension and Social Security information, health insurance infor...
by delamer
Sat Jan 13, 2018 3:32 pm
Forum: Personal Finance (Not Investing)
Topic: Budgeting Vs Savings Rate
Replies: 59
Views: 3601

Re: Budgeting Vs Savings Rate

Not meant to be a snarky remark, but for what purpose do you track your spending if not to act on the information that you gather?

And if you are acting on the information by reallocating money to different categories, then you are effectively budgeting already.
by delamer
Sat Jan 13, 2018 3:13 pm
Forum: Personal Finance (Not Investing)
Topic: What information should my heirs have just in case
Replies: 12
Views: 589

Re: What information should my heirs have just in case

Financial institution, account number, name account is under, and type of account (example — Vanguard, #123, Mom, IRA). Also add information on any debt and life insurance. If you maintain financial records on a spreadsheet or software like Quicken, I’d make sure they know where to find those record...
by delamer
Fri Jan 12, 2018 5:25 pm
Forum: Personal Finance (Not Investing)
Topic: How much/little money to give kids in will so they continue to work
Replies: 95
Views: 7794

Re: How much/little money to give kids in will so they continue to work

So if you had two children who got the same grades at the same college and went into the same profession, one took a job in North Dakota and bought a house, s/he gets more than another who goes to San Francisco and can't afford to buy? What if they buy something 3 times as expensive, do they get mo...
by delamer
Fri Jan 12, 2018 4:43 pm
Forum: Investing - Help with Personal Investments
Topic: Minimum $10k funds: If you start with $10k and it drops; how big of an issue is that?
Replies: 4
Views: 530

Re: Minimum $10k funds: If you start with $10k and it drops; how big of an issue is that?

No, you don't need to do anything. It is really not a worry at all. Not at all. My experience is with Vanguard though and not with Fidelity. My experience is the same, assuming that you are not talking about the value falling due to withdrawals of purchased shares but only due to a drop in share pr...
by delamer
Fri Jan 12, 2018 4:09 pm
Forum: Personal Finance (Not Investing)
Topic: How much/little money to give kids in will so they continue to work
Replies: 95
Views: 7794

Re: How much/little money to give kids in will so they continue to work

What if your kids choose to be renters instead of homeowners? Or what if they decide to start their own businesses instead of going to college? Would you refuse to give money to them because their values differ somewhat then yours? Yes, we would refuse in most circumstances that I can foresee (unle...
by delamer
Fri Jan 12, 2018 3:43 pm
Forum: Investing - Theory, News & General
Topic: 4% Withdrawal vs Yield as Income
Replies: 41
Views: 2077

Re: 4% Withdrawal vs Yield as Income

As a long term investor who prefers to live off of dividends, I am not concerned what the market value of my portfolio is now or in a year or two. I care what it will be in 10 or 20 years when I might want to sell and spend. For now, my concern is whether the actual dollar amount of my dividend cas...
by delamer
Fri Jan 12, 2018 3:19 pm
Forum: Personal Finance (Not Investing)
Topic: How much/little money to give kids in will so they continue to work
Replies: 95
Views: 7794

Re: How much/little money to give kids in will so they continue to work

Our goal with the inheritance trusts is for them to disburse money to help our kids in ways that we would have done if we were still living. So money for home downpayments, college educations, contributions to retirement accounts, help in the event of disability or other costly medical conditions. ...
by delamer
Fri Jan 12, 2018 3:11 pm
Forum: Personal Finance (Not Investing)
Topic: Getting your spouse on the same page
Replies: 51
Views: 4373

Re: Getting your spouse on the same page

Many interesting responses, some of which describe arrangements that would cause me a lot of anxiety. :( If you can agree on a savings level, then that money can go straight from your paychecks into your 401(k)s, IRAs, and/or taxable accounts. You also can have money for major recurring expenses lik...
by delamer
Fri Jan 12, 2018 2:50 pm
Forum: Personal Finance (Not Investing)
Topic: Getting your spouse on the same page
Replies: 51
Views: 4373

Re: Getting your spouse on the same page

What we've done is his, mine, and ours. We have a good idea of what the basic household expenses are, and we contribute equally to the joint account from which we pay them. Short terms savings is included in this figure: for escrow expenses; for car maintenance and replacement; for vacations. I als...
by delamer
Fri Jan 12, 2018 2:24 pm
Forum: Personal Consumer Issues
Topic: Almost a pathological fear of debt, to my detriment?
Replies: 79
Views: 4260

Re: Almost a pathological fear of debt, to my detriment?

You have a spouse. Your spouse gets equal weight in decisions about taking on/paying off debt. If you find that you are in conflict with your spouse about debt because s/he wants to take on reasonable amounts of low interest debt (like a 15-year mortgage for 50% of the value of a home), then your fe...
by delamer
Fri Jan 12, 2018 2:09 pm
Forum: Personal Finance (Not Investing)
Topic: How much/little money to give kids in will so they continue to work
Replies: 95
Views: 7794

Re: How much/little money to give kids in will so they continue to work

A parent trying to leave funds to a child in a prudent manner is in absolutely no way trying to "run their lives." How is it not? "You can have this money if you live your life of a way that I approve." I see people wanting to give money if children get married. Why? Marriage isn't for everyone, an...
by delamer
Thu Jan 11, 2018 8:17 pm
Forum: Personal Finance (Not Investing)
Topic: Senior seeking info about obtaining mortgage for condo purchase
Replies: 10
Views: 689

Re: Senior seeking info about obtaining mortgage for condo purchase

I don’t have any direct experience, but there are ways to use your assets to qualify:

https://www.kiplinger.com/article/retir ... tgage.html
by delamer
Thu Jan 11, 2018 5:43 pm
Forum: Investing - Help with Personal Investments
Topic: Help with Mandatory IRA distributions. The IRS will take my money away!!
Replies: 29
Views: 1906

Re: Help with Mandatory IRA distributions. The IRS will take my money away!!

If you are satisfied with your investments, then seems that you need a CPA to help with tax issues. The 40% of your investments in tax-deferred will be taxed at ordinary income rates when withdrawn. But required distributions don’t start until you are 70.5. Much of your taxable account — which is no...
by delamer
Thu Jan 11, 2018 5:35 pm
Forum: Investing - Help with Personal Investments
Topic: Am I doing this right?
Replies: 5
Views: 626

Re: Am I doing this right?

Thanks @mhalley for your response! I have edited my initial post based on your feedback. Follow up question: -Does it make sense to invest $20k of $57k (or whatever other amount) in bonds or is it better in a CD? -How does the CD ladder works? Add the full names of your investments; people do not k...
by delamer
Thu Jan 11, 2018 4:38 pm
Forum: Investing - Help with Personal Investments
Topic: Question about My Cost Basis
Replies: 3
Views: 188

Re: Question about My Cost Basis

That will do it, assuming that you also have not withdrawn any shares since your initial purchase.
by delamer
Thu Jan 11, 2018 4:19 pm
Forum: Investing - Help with Personal Investments
Topic: Yet another Retiree Emergency Fund Question - Income floor vs EF?
Replies: 13
Views: 744

Re: Yet another Retiree Emergency Fund Question - Income floor vs EF?

Does this emergency fund need to be different than a cash allocation in your investments? There are three reasons to hold cash in retirement — 1) money needed for regular, ongoing expenses not covered by annuituzed income, 2) money needed for short-term, irregular but predictable expenses (like a ne...
by delamer
Thu Jan 11, 2018 4:01 pm
Forum: Personal Finance (Not Investing)
Topic: Help with 401K matching amounts
Replies: 9
Views: 270

Re: Help with 401K matching amounts

If the company is matching up to the first 6% that you contribute, 6% of $250,000 is more than 6% of $200,000. A $3k difference, to be precise. Well, it depends on whether the match is 1.0 to 1.0, for example, or 0.5 to 1.0 (in which case it would be $1500) or some other formula. It is dollar for d...
by delamer
Thu Jan 11, 2018 3:49 pm
Forum: Personal Finance (Not Investing)
Topic: Help with 401K matching amounts
Replies: 9
Views: 270

Re: Help with 401K matching amounts

sailaway wrote:
Thu Jan 11, 2018 3:37 pm
delamer wrote:
Thu Jan 11, 2018 3:34 pm
If the company is matching up to the first 6% that you contribute, 6% of $250,000 is more than 6% of $200,000.
A $3k difference, to be precise.
Well, it depends on whether the match is 1.0 to 1.0, for example, or 0.5 to 1.0 (in which case it would be $1500) or some other formula.
by delamer
Thu Jan 11, 2018 3:34 pm
Forum: Personal Finance (Not Investing)
Topic: Help with 401K matching amounts
Replies: 9
Views: 270

Re: Help with 401K matching amounts

If the company is matching up to the first 6% that you contribute, 6% of $250,000 is more than 6% of $200,000. Apparently there are limits set by the IRS on how much compensation can be matched ($275,000 in 2018): https://www.irs.gov/retirement-plans/401k-plans-deferrals-and-matching-when-compensati...