Search found 859 matches

by dharrythomas
Thu Jun 14, 2018 7:23 pm
Forum: Investing - Theory, News & General
Topic: Recommendations for specific "Boglehead-like" podcast episodes (for elderly mother)
Replies: 19
Views: 1432

Re: Recommendations for specific "Boglehead-like" podcast episodes (for elderly mother)

Not sure it is as in depth as you are looking for, but it is good over-view of index fund investing and the reason I first heard about it. Might be a good first podcast to let her hear on the subject. Freakonomics podcast episode "The Stupidest Thing You Can Do With Your Money" http://freakonomics....
by dharrythomas
Mon Jun 11, 2018 5:35 pm
Forum: Investing - Help with Personal Investments
Topic: Respectfully Looking for Advice
Replies: 19
Views: 2126

Re: Respectfully Looking for Advice

I'd pay off the cars and the house. That frees up $30,000 of annual cash flow for investing now and lowers you spending requirement. Leave the $50K in the emergency fund, put the rest of the cash into Tax Managed Balanced Fund, max both 401(K)s, and also max out Roth IRAs. Switch the 401(K) to tradi...
by dharrythomas
Mon Jun 11, 2018 5:20 pm
Forum: Investing - Help with Personal Investments
Topic: How to convince my co-worker to invest more?
Replies: 47
Views: 3254

Re: How to convince my co-worker to invest more?

Show him a compound interest table and say "it's amazing how much less you can save on a regular basis if you start early. Thanks for what you are doing. I talked to a colleague that said none of her supervisors in about a decade had talked to her about the TSP. I talked to each of my subordinates a...
by dharrythomas
Mon Jun 11, 2018 4:56 pm
Forum: Investing - Theory, News & General
Topic: Do Small Caps Outperform?
Replies: 61
Views: 3873

Re: Do Small Caps Outperform?

I think DFA would tell you that it is microcaps that outperform, but with additional volatility. So the Russell is not small enough to capture most of the benefit. It also depends on the timeframe you look at because small does not outperform over every possible timeframe, just like value does not a...
by dharrythomas
Sun Jun 10, 2018 5:07 pm
Forum: Investing - Help with Personal Investments
Topic: Left Advisory Portfolio to do it myself and fear I made mess of things
Replies: 35
Views: 2638

Re: Left Advisory Portfolio to do it myself and fear I made mess of things

Yes, you've got a mess in your portfolio. On the other hand, with investable assets of approximately $650K, you are far ahead of the median household. If your spending requirement in retirement is not outsized and you plan to work until 67, any place but here you are on track. Now for the mess. I di...
by dharrythomas
Sun Jun 10, 2018 2:49 pm
Forum: Investing - Theory, News & General
Topic: Vanguard's own 401k plan eliminating S&P 500 Index option!
Replies: 86
Views: 7505

Re: Vanguard's own 401k plan eliminating S&P 500 Index option!

We should all try to remember that many of the things we understand and use or don't are just confusing options for the bulk of employees. The world is not full of Bogleheads and firms need to be much more concerned about getting average to a sustainable retirement than the Top 15% to early retireme...
by dharrythomas
Sat Jun 09, 2018 8:14 pm
Forum: Investing - Help with Personal Investments
Topic: Next Steps for Single 34 Year Old with Savings and Roth IRA (VASGX)
Replies: 37
Views: 3042

Re: Next Steps for Single 34 Year Old with Savings and Roth IRA (VASGX)

No one here can comment about whether you are behind or not unless you tell us how much is in the Roth. If you've been maxing it out since you were 22, you are likely OK. If you just started at 30, you lost some time and you are behind the curve for this site. Regardless, you are probably ahead of t...
by dharrythomas
Sat Jun 09, 2018 2:30 pm
Forum: Investing - Help with Personal Investments
Topic: TSP Advice
Replies: 7
Views: 598

Re: TSP Advice

I use one L Fund and don't check often. The TSP will send you a quarterly statement, if they're doing the rebalancing for you, there is no real need to check more often. You appear to have a healthy balance and savings rate, regardless of your age, when you consider the pension.

Good luck

Harry
by dharrythomas
Sat Jun 09, 2018 2:18 pm
Forum: Investing - Help with Personal Investments
Topic: Asset Allocation 53 years old
Replies: 21
Views: 1723

Re: Asset Allocation 53 years old

The real benefit to cutting spending and saving more is that you need less to support your standard of living. $2.5M is only going to provide a safe withdrawal of around $100K. Add SS for maybe $30K. All will be taxed at income tax rates. Do you have any personal debt? I'm not convinced that $2.5M w...
by dharrythomas
Sat Jun 09, 2018 2:05 pm
Forum: Investing - Theory, News & General
Topic: Benjamin Graham's lesson on timing
Replies: 23
Views: 2758

Re: Benjamin Graham's lesson on timing

Graham also recommended that the default portfolio be 50/50 and that portfolio asset allocations for the most defensive and most enterprising investors should be between 25/75 and 75/25, he learned from his experience. "The Intelligent Investor"
by dharrythomas
Sat Jun 09, 2018 11:45 am
Forum: Investing - Theory, News & General
Topic: $1M Question
Replies: 38
Views: 4825

Re: $1M Question

Lets assume you have $10,000. Makes the calculations easier. That is you want a 9,900% annual return. Or a daily return of 1.26%, if we assume a 365 day year. However if you want that type of return you are going to have do some day trading, and there are only about 250 trading days in a year. So a...
by dharrythomas
Sat Jun 09, 2018 11:15 am
Forum: Investing - Theory, News & General
Topic: When I thought I was smarter than the market
Replies: 22
Views: 3704

Re: When I thought I was smarter than the market

Thanks. Many here have some version of that story about being humbled by the markets. Warren Buffett talks about how it is less important how large your "circle of competence" is than that you not overestimate it.

A lesson best learned early. Congratulations.
by dharrythomas
Sat Jun 02, 2018 7:01 pm
Forum: Personal Finance (Not Investing)
Topic: is Having more and needing less normal?
Replies: 113
Views: 8596

Re: is Having more and needing less normal?

My wife who had to have a larger house and big yard when I had a job move after the youngest left for college.

10 years later, she wants to think about downsizing! Money and things aren't everything, they aren't even the most important things in life!
by dharrythomas
Sat Jun 02, 2018 6:44 pm
Forum: Investing - Help with Personal Investments
Topic: International vs US investments
Replies: 18
Views: 1283

Re: International vs US investments

Politics don't influence my investment decisions. International politics certainly don't influence my investment decisions. Why? It looks to me that a company performs differently based on the location....and the politic defines the rules (taxes, etc...)... If someone gives a recommendation to inve...
by dharrythomas
Sat Jun 02, 2018 6:33 pm
Forum: Investing - Help with Personal Investments
Topic: Best use for a $2k raise for a middle-income teacher
Replies: 35
Views: 3712

Re: Best use for a $2k raise for a middle-income teacher

You are doing great. To exceed the $350K goal, you don't need to save additional money. I'd recommend you maintain your current investing rate, put 1/2 of the raise into additional principal payments on you mortgage, and spend the other half. Between income tax and savings, you are already spending ...
by dharrythomas
Sat Jun 02, 2018 3:14 pm
Forum: Investing - Help with Personal Investments
Topic: Roast this profile
Replies: 17
Views: 2320

Re: Roast this profile

You are doing very well, the only comment I have is that you gain next to no diversification benefit from the 3 ETFs. All three are concentrated in the same stocks with almost the same weights. Pick one for all future purchases, I personally prefer TSM as you at least get the midcap and small cap st...
by dharrythomas
Sat Jun 02, 2018 2:57 pm
Forum: Investing - Help with Personal Investments
Topic: TIAA commingles Roth and non-Roth retirement funds?
Replies: 14
Views: 1085

Re: TIAA commingles Roth and non-Roth retirement funds?

The TSP has the same thing, Roth and Traditional in one account with an inability to manage Roth and Traditional Funds separately. At least they are in the process of modifying the withdrawal options.
by dharrythomas
Sat Jun 02, 2018 2:50 pm
Forum: Investing - Help with Personal Investments
Topic: Portfolio Review: Very conservative, primarily interested in capital preservation
Replies: 30
Views: 4320

Re: Portfolio Review: Very conservative, primarily interested in capital preservation

LieStrategy Income Fund has an asset allocation of 20/80, Target Retirement Income is at 30/70. That would provide you a sliver of equity risk/return. Frankly, if you're interested in risk control, leverage reduction is probably the way to go. It also provides a little flexibility when you go back t...
by dharrythomas
Sat Jun 02, 2018 2:31 pm
Forum: Investing - Help with Personal Investments
Topic: Help - investor starting later in life
Replies: 32
Views: 4112

Re: Help - investor starting later in life

If your net worth is about 1.25X net income, a 12-15 year retirement time horizon is aggressive. You'll really have to ratchet down your spending and ratchet up your savings rate to make retiring about age 50 work. You might want to revise that timeline. There is a trade off between current spending...
by dharrythomas
Sun May 27, 2018 2:19 pm
Forum: Investing - Help with Personal Investments
Topic: Retiring and have questions about retirement accounts
Replies: 8
Views: 965

Re: Retiring and have questions about retirement accounts

You should be able to fool your 401(K) to Vanguard, but you'll need to check with your plan. Drawing retirement accounts early (pre 59.5) is complicated so you'll need to check with the plan on the details. There is a rule about periodic withdrawals that allows you to take some early withdrawals but...
by dharrythomas
Sun May 27, 2018 2:02 pm
Forum: Personal Finance (Not Investing)
Topic: Why pay cash for a car?
Replies: 248
Views: 29315

Re: Why pay cash for a car?

We pay cash for cars because we don't like debt. I do think we buy less car and since I've bought 3 for me a 1988, 1995, and a 2005, I make them last when I get them.

I buy miles not a status symbol.
by dharrythomas
Tue May 22, 2018 7:02 pm
Forum: Investing - Help with Personal Investments
Topic: Newbie Needing Help For Mom
Replies: 18
Views: 814

Re: Newbie Needing Help For Mom

I wouldn't try to change what you did this year, I would consider the traditional option going forward. The advantage to the Roth is that it keeps retirement income low, which may help with the tax on SS benefits. On the other hand, if she's eligible, a traditional account cuts current taxes and wou...
by dharrythomas
Tue May 22, 2018 5:32 pm
Forum: Investing - Help with Personal Investments
Topic: Where Should I Invest 3k in Taxable Account? 100% VTSMX?
Replies: 11
Views: 1276

Re: Where Should I Invest 3k in Taxable Account? 100% VTSMX?

I like Total World Stock, but TSM is great too.

Good luck.
by dharrythomas
Tue May 22, 2018 5:29 pm
Forum: Investing - Help with Personal Investments
Topic: Newbie Needing Help For Mom
Replies: 18
Views: 814

Re: Newbie Needing Help For Mom

Tax managed balanced has about 51% municipal bonds and 49% US large cap stocks. Total World Stock is 100% stock with significant international stock that varies by market capitalization. You can mix and match the two funds to get an asset allocation you want in a lot of places between 51% stock and ...
by dharrythomas
Tue May 22, 2018 5:14 pm
Forum: Investing - Help with Personal Investments
Topic: Can I afford to retire now?
Replies: 45
Views: 6623

Re: Can I afford to retire now?

I think you can pay off the house and retire. Many of us who itemized are now going to be taking the standard deduction. With careful management, you can make it even in a high cost of living area.

Good luck.
by dharrythomas
Tue May 22, 2018 4:53 pm
Forum: Investing - Help with Personal Investments
Topic: Newbie Needing Help For Mom
Replies: 18
Views: 814

Re: Newbie Needing Help For Mom

TR2030 is fine for the Roth so is one of the LifeStrategy Funds. I love Roths, but if she's eligible based on income, she might be better off with a traditional IRA. It sounds like her income will be much lower in retirement. Many of the people here who push Roth, already have significant tax deferr...
by dharrythomas
Tue May 22, 2018 4:07 pm
Forum: Investing - Theory, News & General
Topic: Typical interest rate earned by target date funds in retirement?
Replies: 28
Views: 2040

Re: Typical interest rate earned by target date funds in retirement?

The thing you need to understand about the 4% withdrawal rate is that you are spending principal as well as income. For the studies, not being at $0 at the end of the time period is considered success. With a 4% SWR, you should be prepared for a decreasing balance over time. May not happen, but you ...
by dharrythomas
Tue May 22, 2018 3:56 pm
Forum: Investing - Theory, News & General
Topic: Theory: Total World Index a Sure Fire Win [VT/VTWSX]
Replies: 155
Views: 12828

Re: Theory: Total World Index a Sure Fire Win [VT/VTWSX]

I find it really funny that according to the Credit Suisses Yearbook, Austria (tiny nation in central Europe, never mind) made up roughly 5% of global market cap in 1899. Now it's 0.06% (according to the FTSE All-World Index). Home-country bias wouldn't have paid off for me had I lived back then :)...
by dharrythomas
Sat May 19, 2018 10:11 pm
Forum: Investing - Help with Personal Investments
Topic: Help Me Help Parents
Replies: 12
Views: 1404

Re: Help Me Help Parents

I agree with Watty. Take the $40K and this year's RMD and pay down the mortgage balance. Being out of debt has the same basic result as an annuity with added flexibility. I would not pull money from the IRA early to pay off the mortgage as you want to minimize taxes.
by dharrythomas
Sat May 19, 2018 9:58 pm
Forum: Investing - Help with Personal Investments
Topic: Young Doctor Couple - Starting Work, Starting to Invest
Replies: 31
Views: 2913

Re: Young Doctor Couple - Starting Work, Starting to Invest

I am strongly anti-debt, but the nice thing about student loans is that they are unsecured personal debt and if you were to die your estate doesn't have to pay them off. It is one kind of debt I might delay paying off while I built up the investment account and home equity. I think of it as similar ...
by dharrythomas
Sat May 19, 2018 9:44 pm
Forum: Investing - Help with Personal Investments
Topic: Buying shares in Demutualized bank
Replies: 19
Views: 1558

Re: Buying shares in Demutualized bank

I have no experience with demulualization, but did invest in a couple of bank start-ups. One is not listed anywhere, after 16 years, the first offered to buy back shares at book value (4x initial purchase price), after 18 years, we've received more than the initial purchase price in dividends. One, ...
by dharrythomas
Sat May 19, 2018 9:03 pm
Forum: Investing - Help with Personal Investments
Topic: Would like to simplify my portfolio. Any thoughts?
Replies: 23
Views: 969

Re: Would like to simplify my portfolio. Any thoughts?

The general rule is that you're wasting your time with allocations less than 5%. You add needless complexity to your account without moving the needle on returns. No matter how good you do with that portion, it gets buried when it is averaged into your total portfolio return. Even if it went to zero...
by dharrythomas
Sat May 19, 2018 9:33 am
Forum: Investing - Theory, News & General
Topic: If RMD are large should you still defer into 401k
Replies: 32
Views: 3164

Re: If RMD are large should you still defer into 401k

You could consider shifting your deferrals to a Roth account if available. Then before retirement, roll it to a Roth IRA and avoid MRDs. You give up the current tax deduction but save later.
by dharrythomas
Tue May 15, 2018 3:05 pm
Forum: Investing - Theory, News & General
Topic: Volatility tolerance build up
Replies: 11
Views: 932

Re: Volatility tolerance build up

It also might depend on whether your job has a defined benefit pension or not. After I locked in my Army Reserve pension, I felt free to take addition risk with my portfolio and with my career knowing that I had a solid floor below which my wife wouldn't fall in retirement regardless. A pension and ...
by dharrythomas
Tue May 15, 2018 2:47 pm
Forum: Investing - Theory, News & General
Topic: How much should I save before I start investing? and more
Replies: 13
Views: 1997

Re: How much should I save before I start investing? and more

If you've got earned income, you can invest in an IRA preferably Roth IRA. With $1,000 Vanguard will let you open accounts with the STAR Fund or a Target Retirement Fund which provide broad diversification in balanced fund of funds. I usually recommend TR.

Good luck.
by dharrythomas
Tue May 15, 2018 2:40 pm
Forum: Investing - Theory, News & General
Topic: Good idea investing now in long term funds?
Replies: 57
Views: 4337

Re: Good idea investing now in long term funds?

If the Fed has artificially kept interest rates low, interest rates have to go up. If we're in a world with abundant capital chasing returns, long term rates might remain low. The way I look at it is that when rates were 15-18% on long bonds there was a great deal of upside with minimal risk or at l...
by dharrythomas
Tue May 15, 2018 1:56 pm
Forum: Investing - Theory, News & General
Topic: Roth IRA or Taxable Account
Replies: 7
Views: 821

Re: Roth IRA or Taxable Account

Composition of the Roth accounts would depend on whether you already have a 401(K), a traditional IRA or a taxable account. It should all be considered one portfolio.

I like the LifeStrategy and Target Retirement funds. All index, stocks and bonds, domestic and international.

Good luck.
by dharrythomas
Tue May 15, 2018 1:06 pm
Forum: Investing - Help with Personal Investments
Topic: Advice for My Mom's Retirement Portfolio
Replies: 5
Views: 661

Re: Advice for My Mom's Retirement Portfolio

Welcome to the forum!! Hope we can help. Your mother is in good shape. As the savings bonds mature, put them in the checking account to replenish her account. I'd wait a couple of years on converting the annuities into income streams since your values will increase not only with time but also with t...
by dharrythomas
Tue May 08, 2018 7:54 pm
Forum: Investing - Theory, News & General
Topic: Happy 89th birthday to [Jack] Bogle
Replies: 44
Views: 2671

Re: Happy 89th birthday to Bogle

Happy Birthday and God bless!!
by dharrythomas
Thu May 03, 2018 6:02 pm
Forum: Investing - Theory, News & General
Topic: How does stock buyback benefit investors?
Replies: 78
Views: 6373

Re: How does stock buyback benefit investors?

Some investors sell their stock back. Other investors get a larger percentage of the company. Like with all dividends, the real question is whether the company can make a higher rate of return than the investor can get elsewhere. If a company does not have better investment options internally, eithe...
by dharrythomas
Wed May 02, 2018 12:36 pm
Forum: Investing - Help with Personal Investments
Topic: Need Wise and Witty Boglehead review of Pre-Retirement Portfolio
Replies: 16
Views: 1684

Re: Need Wise and Witty Boglehead review of Pre-Retirement Portfolio

What I meant about the 401(K) was to put all of the funds in the Blackrock Target date fund. If you have a fund with 3% of you assets, it just doesn't matter. Double the return of everything else or half the return of everything else, it doesn't move the needle on total portfolio return. Simplify. Y...
by dharrythomas
Wed May 02, 2018 12:21 pm
Forum: Investing - Help with Personal Investments
Topic: Retirement at 43-45 (Military)
Replies: 17
Views: 2854

Re: Retirement at 43-45 (Military)

With a Roth IRA, you can withdraw contributions, not earnings, tax free at any time. With the upcoming changes in TSP withdrawal rules, you'll be able to roll the Roth TSP into an IRA upon retirement.

Traditional, there is a penalty until 59.5

Good luck
by dharrythomas
Tue May 01, 2018 9:01 pm
Forum: Investing - Help with Personal Investments
Topic: EMs in TSP's I fund: New AA for TSP and Roth IRA?
Replies: 9
Views: 639

Re: EMs in TSP's I fund: New AA for TSP and Roth IRA?

There is absolutely nothing wrong with option A.

I'd go 10 years beyond the TSP recommendation, the asset allocations are very conservative.

I use Lifecyle in the TSP and LifeStrategy at Vanguard.

Good Luck.

Harry
by dharrythomas
Tue May 01, 2018 8:55 pm
Forum: Investing - Help with Personal Investments
Topic: Need Wise and Witty Boglehead review of Pre-Retirement Portfolio
Replies: 16
Views: 1684

Re: Need Wise and Witty Boglehead review of Pre-Retirement Portfolio

I'll try to address some of your questions. But first, you have way to many different funds. We've got 6 different investment accounts--5 at Vanguard--and 5 funds--TSP Lifecycle 2040, Total world Stock, Tax Managed Balanced, LifeStrategy Moderate Growth, LifeStrategy Growth. A little higher expense ...
by dharrythomas
Tue May 01, 2018 8:10 pm
Forum: Investing - Help with Personal Investments
Topic: Retirement at 43-45 (Military)
Replies: 17
Views: 2854

Re: Retirement at 43-45 (Military)

I use USAA for home, auto, and umbrella insurance, banking and credit card. I've had two mortgages and maybe a refi with them. We even periodically use their buying and travel services. We had some of their mutual funds in the late 80s. I quite sending them new money and moved the last of our accoun...
by dharrythomas
Sat Apr 14, 2018 6:43 am
Forum: Investing - Theory, News & General
Topic: Is there a such thing as a blue collar Boglehead?
Replies: 251
Views: 36793

Re: Is there a such thing as a blue collar Boglehead?

I can't ever claim to have been blue collar. But I had a number of years where I was making about the median wage at my primary job. 6 months between jobs, went to school at night several times. And I guess the work I did performing environmental field sampling in superfund sites is not different fr...
by dharrythomas
Sun Feb 18, 2018 8:31 pm
Forum: Investing - Help with Personal Investments
Topic: Really need an advice: sell the house or rent it out
Replies: 40
Views: 2518

Re: Really need an advice: sell the house or rent it out

There are no guarantees. I do not recommend that anyone with the equity or cash to sale become a landlord by default. It is a business and unless you want to work the business and are ready for the good and the bad stay out of it. If you want the money for a home purchase in 6 years, I would not con...
by dharrythomas
Fri Feb 16, 2018 9:40 pm
Forum: Investing - Theory, News & General
Topic: Can someone help me explain to my wife...?
Replies: 81
Views: 10295

Re: Can someone help me explain to my wife...?

No, I've given up. I've avoided the worst pitfalls (tech stocks and the housing bubble) because I didn't understand what was going on and got out of debt and stayed diversified. Told her I didn't understand and it wouldn't end well. I've been trying to explain that that is not the same as trying to ...
by dharrythomas
Sun Jan 07, 2018 8:20 pm
Forum: Investing - Help with Personal Investments
Topic: Military Deployment Help—TSP Optimization
Replies: 17
Views: 1772

Re: Military Deployment Help—TSP Optimization

If you are able to commit $55K to retirement, I recommend tax exempt and Roth TSP. Upon retirement, you can execute a rollover using TSP partial withdrawal taking TSP balance down to the minimum separating tax deferred, Roth, and tax exempt monies. When you get the check for tax exempt monies, you ...
by dharrythomas
Sun Jan 07, 2018 11:47 am
Forum: Investing - Theory, News & General
Topic: Does the S&P 500 Grow Faster Than the Economy?
Replies: 31
Views: 3339

Re: Does the S&P 500 Grow Faster Than the Economy?

Only in the short run, in the long term there should be rough correlation offset by cyclical changes in the P/E ratio. Of course, the short run may last longer than any individual's investing horizon.