Search found 1536 matches

by FinancialDave
Sat May 05, 2018 12:14 am
Forum: Investing - Theory, News & General
Topic: Fixed income windfall allocation: lump sum or steadily buy?
Replies: 43
Views: 2565

Re: Fixed income windfall allocation: lump sum or steadily buy?

As said above, a $1M portfolio made up of 30 years of market returns is today no different than a $1M deposit into your checking account. If you are afraid to lump the new $1M in, you should be equally afraid leaving the 30 year accumulated $1M invested. That sounds just a little toooo academic for...
by FinancialDave
Fri May 04, 2018 11:44 pm
Forum: Investing - Theory, News & General
Topic: Don't leave your non-spouse heirs TIRAs with basis, unless you hate them!
Replies: 92
Views: 8287

Re: Don't leave your non-spouse heirs TIRAs with basis, unless you hate them!

There was comprehensive legal scholarship by Prof Jim Maule on this issue in a 2007 article here. Note that the only potential problem areas in that paper involved computation of self-employment income, but basis of an IRA does not affect that item at all. This comes up almost every year when I am ...
by FinancialDave
Fri May 04, 2018 1:59 pm
Forum: Investing - Theory, News & General
Topic: Don't leave your non-spouse heirs TIRAs with basis, unless you hate them!
Replies: 92
Views: 8287

Re: Don't leave your non-spouse heirs TIRAs with basis, unless you hate them!

Epsilon Delta wrote:
Fri May 04, 2018 9:34 am
I offer my services as a heir to anybody who has a TIRA with basis.

Feel free to hate me if you like, although it is not necessary.
I'll second that!

:sharebeer

In fact if it helps the cause I will agree to ignore the basis!
by FinancialDave
Mon Apr 30, 2018 6:08 pm
Forum: Investing - Theory, News & General
Topic: Roth IRA vs unmatched 401K
Replies: 14
Views: 670

Re: Roth IRA vs unmatched 401K

I am in the camp (retired at 60, now 66) of KNOWING my tax rate is considerably less in retirement -- 25% down to 12%. Yours of course may vary, but I have looked at a lot of tax returns in my volunteer work and not many can really say their tax rate is higher now in retirement, other than maybe the...
by FinancialDave
Mon Apr 30, 2018 5:27 pm
Forum: Investing - Theory, News & General
Topic: Fixed income windfall allocation: lump sum or steadily buy?
Replies: 43
Views: 2565

Re: Fixed income windfall allocation: lump sum or steadily buy?

With interest rates inside brokerage accounts now above 1% (about 1.6% right now -VMMXX) I see no need to PILE INTO interest rate risk all at once by investing all $200k into bonds at one time. Certainly if you are going to buy short term bond funds, most of them are not even going to make the 1.6% ...
by FinancialDave
Mon Apr 30, 2018 5:20 pm
Forum: Investing - Theory, News & General
Topic: Portfolio Changes After Retirement
Replies: 11
Views: 1134

Re: Portfolio Changes After Retirement

I agree with most everyone else, Less-Is_More, in retirement, however you can't really go less than 3, without using some sort of Balanced Fund(s). As a 3-fund retirement account I like Wellington, Wellesly, & Total Stock Market, from which I can manage just about any Stock/Bond ratio I want. It's m...
by FinancialDave
Thu Feb 08, 2018 11:55 am
Forum: Investing - Theory, News & General
Topic: Backdoor Roth on the Bubble
Replies: 5
Views: 435

Re: Backdoor Roth on the Bubble

Have you already maxed out a traditional 401k or other tax deferred instruments that will get you a deduction off your taxable income?

Dave
by FinancialDave
Tue Feb 06, 2018 11:39 am
Forum: Investing - Theory, News & General
Topic: 2018 Hedge Fund contest
Replies: 142
Views: 13083

Re: 2018 Hedge Fund contest

Yes,
I think I heard XIV is bankrupt.

I know this was an inverse ETN, but the same is something that can happen to anyone with a short position! It can go up farther than you have money.

Something for those Hedge Fund Managers with only a short position to remember.

:sharebeer

fd
by FinancialDave
Mon Feb 05, 2018 7:56 pm
Forum: Investing - Theory, News & General
Topic: TSM believers, defend thyself! (In a good natured, friendly debate.)
Replies: 59
Views: 6615

Re: TSM believers, defend thyself! (In a good natured, friendly debate.)

Jeff,
I am missing your point here. Are you saying all these endowments had exactly the same asset allocation, because I doubt that they did, so I am not sure what you are comparing??

Dave
by FinancialDave
Sun Feb 04, 2018 10:47 pm
Forum: Investing - Theory, News & General
Topic: TSM believers, defend thyself! (In a good natured, friendly debate.)
Replies: 59
Views: 6615

Re: TSM believers, defend thyself! (In a good natured, friendly debate.)

Just remember, at the end of the day there is NOTHING that IS going to guarantee you above market returns - HOWEVER there is something that WILL guarantee you market returns. Finally, those market returns are not going to guarantee you any particular CAGR -- even if you got the 10% after 28 years yo...
by FinancialDave
Mon Jan 15, 2018 2:40 pm
Forum: Investing - Theory, News & General
Topic: REGISTRATION FOR 2018 BOGLEHEAD CONTEST
Replies: 154
Views: 10851

Re: REGISTRATION FOR 2018 BOGLEHEAD CONTEST

Suggestions for the summary chart: - Please provide a legend. I assume the red dots are the Wall Street Experts. - Create an anchor (Iink) to the Summary chart from the top of the page. Then, an anchor (link) from the chart to the top of the page. Otherwise, readers may not see the chart - it's a l...
by FinancialDave
Sat Jan 13, 2018 8:36 pm
Forum: Investing - Theory, News & General
Topic: VUSXX vs. TreasuryDirect
Replies: 10
Views: 1434

Re: VUSXX vs. TreasuryDirect

Kevin,
Which tax-exempt MM were you thinking?

When I look at the Vanguard VMSXX its 7-day yield is only .74%. Hardly seems an alternative to VMMXX paying 1.42%.

Dave
by FinancialDave
Sat Jan 13, 2018 8:18 pm
Forum: Investing - Theory, News & General
Topic: VUSXX vs. TreasuryDirect
Replies: 10
Views: 1434

Re: VUSXX vs. TreasuryDirect

I am confused why you need VUSXX with a 7-day yield of 1.19% when the standard money market VMMXX is paying 1.42%

Dave
by FinancialDave
Sat Jan 13, 2018 10:51 am
Forum: Investing - Theory, News & General
Topic: 4% Withdrawal vs Yield as Income
Replies: 41
Views: 2501

Re: 4% Withdrawal vs Yield as Income

When I buy a house (for cash) and its value drops by half, have I lost anything. Is the house still providing everything I need? If I am later forced to sell at a loss then yes I have lost something. Dave Yes you lose money the instant the house drops in value. You might feel better not knowing tha...
by FinancialDave
Fri Jan 12, 2018 8:18 pm
Forum: Investing - Theory, News & General
Topic: If I have a million with Edward Jones, in 10 years, how much money has my FA made off me?
Replies: 48
Views: 6813

Re: If I have a million with Edward Jones, in 10 years, how much money has my FA made off me?

Trying to gauge the general idea on how much the guy is making off of my parents, or how much he makes yearly off them. That is really the wrong question to ask. The only relevant question to you is how much the fees are reducing your parents retirement nest egg, because that number is a compounded...
by FinancialDave
Fri Jan 12, 2018 8:05 pm
Forum: Investing - Theory, News & General
Topic: 4% Withdrawal vs Yield as Income
Replies: 41
Views: 2501

Re: 4% Withdrawal vs Yield as Income

@will, I agree with you - poor choice of terms on my part. In the long term there is no guarantee you are going to preserve your capital with ANY strategy other than FDIC insured bank account where you only spend the income. I understand very well that especially if you try and invest in individual ...
by FinancialDave
Fri Jan 12, 2018 7:51 pm
Forum: Investing - Theory, News & General
Topic: 4% Withdrawal vs Yield as Income
Replies: 41
Views: 2501

Re: 4% Withdrawal vs Yield as Income

"Look, the 4% withdrawals include dividends. If I was 100% Total Stock Market Index in retirement (I wouldn't be), I'll get the 2% dividends from it, and then sell another 2% each year." Understood and agreed. But you could build your own portfolio of individual stocks (no REITS or MLP's) that pays...
by FinancialDave
Fri Jan 12, 2018 7:10 pm
Forum: Investing - Theory, News & General
Topic: 4% Withdrawal vs Yield as Income
Replies: 41
Views: 2501

Re: 4% Withdrawal vs Yield as Income

@financialdave Thanks that makes sense, that wiki is misleading. I put a $1,000,000 hypothetical into portfoliovisualizer in VTSMX. You can see that the portfolio income is pretty resilient to a crash. The rise in income afterwards is due to only price increase, without dividends reinvested. Though...
by FinancialDave
Fri Jan 12, 2018 3:36 pm
Forum: Investing - Theory, News & General
Topic: 4% Withdrawal vs Yield as Income
Replies: 41
Views: 2501

Re: 4% Withdrawal vs Yield as Income

@finacialdave How is the bogglehead link misleading? Using the link, let's say you had 1mm in 2007. Come 2008 with a -37% return that 1m is now $630,000. The div yield in 2007 was 1.79% of $1,000,000 (so $17,000), then come 2008 the div yield was 2.12% of $630,000 (so $13,356), about a -21% change ...
by FinancialDave
Fri Jan 12, 2018 2:11 pm
Forum: Investing - Theory, News & General
Topic: 4% Withdrawal vs Yield as Income
Replies: 41
Views: 2501

Re: 4% Withdrawal vs Yield as Income

Hi All, A lot of forums talk about taking 4% a year from your entire portfolio to fund retirement. This has been bugging me a little as I think it is possible if you have a large enough $ portfolio to live of dividends, say a $3,000,000 portfolio in just total market index would pay on avg 2%, thus...
by FinancialDave
Mon Jan 08, 2018 11:57 am
Forum: Investing - Theory, News & General
Topic: 2018 Hedge Fund contest
Replies: 142
Views: 13083

Re: 2018 Hedge Fund contest

Tanelorn Capital: Better Lucky Than Good Our concentrated portfolios are designed to debunk that myth that short selling is risky and remind potential investors that no matter how cheap a stock is, there is always 100% to be made on the way to zero. Tanelorn, I would like to point out that the "bad...
by FinancialDave
Mon Jan 08, 2018 12:35 am
Forum: Investing - Theory, News & General
Topic: 2018 Hedge Fund contest
Replies: 142
Views: 13083

Re: 2018 Hedge Fund contest

NAME: SHORT BUSTER RETAIL

LONG: JCP
by FinancialDave
Sat Jan 06, 2018 12:57 pm
Forum: Investing - Theory, News & General
Topic: Retire on dividends & pay taxes with principal?
Replies: 10
Views: 1362

Re: Retire on dividends & pay taxes with principal?

According to PortfolioVisualizer "living off dividends" would have meant going from $32,000 a year up to $57,000 and then down to $26,000 a year in the space of 7 years. Then it would take another 13 years to return to the $57,000 level. If a retiree can actually get by on a 2.6% withdrawal then it...
by FinancialDave
Wed Jan 03, 2018 12:27 am
Forum: Investing - Theory, News & General
Topic: 2018 Hedge Fund contest
Replies: 142
Views: 13083

Re: 2018 Hedge Fund contest

Again, I meant to get this up earlier, but this is the thread for the 2018 hedge fund contest. You can find the previous year's contest (2017) here: https://www.bogleheads.org/forum/viewtopic.php?f=10&t=206778 Pick a fancy name for your hedge fund. Before 9:30 am EST on 8 Jan 2018, in this thread, ...
by FinancialDave
Tue Jan 02, 2018 11:02 pm
Forum: Investing - Theory, News & General
Topic: 2018 Hedge Fund contest
Replies: 142
Views: 13083

Re: 2018 Hedge Fund contest

Again, I meant to get this up earlier, but this is the thread for the 2018 hedge fund contest. You can find the previous year's contest (2017) here: https://www.bogleheads.org/forum/viewtopic.php?f=10&t=206778 Pick a fancy name for your hedge fund. Before 9:30 am EST on 8 Jan 2018, in this thread, ...
by FinancialDave
Tue Jan 02, 2018 10:59 am
Forum: Investing - Theory, News & General
Topic: REGISTRATION FOR 2018 BOGLEHEAD CONTEST
Replies: 154
Views: 10851

Re: REGISTRATION FOR 2018 BOGLEHEAD CONTEST

I have entered 2967.67 on the form.
by FinancialDave
Fri Dec 22, 2017 8:09 pm
Forum: Investing - Theory, News & General
Topic: Investing in HSA for Retirement Purpose?
Replies: 24
Views: 2760

Re: Investing in HSA for Retirement Purpose?

One important item to consider when setting up for an HSA is what are your medical expenses going to be based on the high deductable plan of the HSA. HSA's have cheaper monthly fees because the deductable is higher, which means these higher medical deductions are eating into your tax savings in the ...
by FinancialDave
Fri Dec 22, 2017 1:56 pm
Forum: Investing - Theory, News & General
Topic: Investing in HSA for Retirement Purpose?
Replies: 24
Views: 2760

Re: Investing in HSA for Retirement Purpose?

Considering the recent tax bill almost nuke the 401k deduction, I would also ignore your friend. The HSA is NOT a huge advantage if you only use it for an IRA, but it's fabulous if you use it for what it's for - paying for health care! Thanks to the Bogleheads book, I learned that we didn't need to...
by FinancialDave
Tue Dec 12, 2017 5:42 pm
Forum: Investing - Theory, News & General
Topic: Vanguard Security Keys
Replies: 54
Views: 5406

Re: Vanguard Security Keys

I personally think the better method is the hard token method, which can be used with mobile or computer options and the only way to bypass the token is call up the broker and get them to turn off the token on their end after verifying your identity. Still not 100% fool proof but better and EASIER! ...
by FinancialDave
Mon Dec 04, 2017 5:34 pm
Forum: Investing - Theory, News & General
Topic: Vanguard customer service reps need some training
Replies: 66
Views: 7547

Re: Vanguard customer service reps need some training

jh, I think you are also correct in that one exchange could move the $10,000 into the 3 funds in one transaction. And there's a drop down option to sell/exchange by percentage that makes it easy if you're liquidating a fund like the OP. That makes perfect sense, because you don't know what your clo...
by FinancialDave
Mon Dec 04, 2017 5:13 pm
Forum: Investing - Theory, News & General
Topic: Vanguard customer service reps need some training
Replies: 66
Views: 7547

Re: Vanguard customer service reps need some training

Just venting here since I can't call and talk to representative until Monday. I did an exchange (in my Roth account) yesterday over the phone. I wanted to clear out one of my funds since it overlaps with our 401k holdings and put the money to three other Roth funds that I already had in that accoun...
by FinancialDave
Mon Dec 04, 2017 4:19 pm
Forum: Investing - Theory, News & General
Topic: Vanguard customer service reps need some training
Replies: 66
Views: 7547

Re: Vanguard customer service reps need some training

I don't think the OP's triple transaction can be done online in a single day. That's because after 25% is moved, the 45% and 30% become different, namely the original 45% is 60% of the remaining shares and the remaining 30% is 100% of those remaining shares. I don't think the web site is programmed...
by FinancialDave
Mon Oct 23, 2017 7:13 pm
Forum: Investing - Theory, News & General
Topic: Calculator - pretax vs aftertax plans
Replies: 46
Views: 3037

Re: Calculator - pretax vs aftertax plans

It gets a bit tricky when the deferrals lead to extra money invested in non-tax-advantaged accounts. Then you need to look at the ongoing tax drag (if any) and tax on withdrawal (if any). I can put 18k into traditional or Roth 401(k), but in the former case I have more going into my regular brokera...
by FinancialDave
Mon Oct 23, 2017 3:48 pm
Forum: Investing - Theory, News & General
Topic: Fellow TDA bogleheads [TDA dropping Vanguard ETFs from commission-free list]
Replies: 549
Views: 61213

Re: Fellow TDA bogleheads [TDA dropping Vanguard ETFs from commission-free list]

Anyone planning to leave TD Ameritrade because of this? If you are planning to leave where will you be going? I am annoyed as a VTI, VEU, and BND holder at TD, but I don't want to jump to any conclusions about my possibility of leaving before I think it through. I have been very happy with the serv...
by FinancialDave
Mon Oct 02, 2017 9:31 pm
Forum: Personal Finance (Not Investing)
Topic: Social Security Survivor Benefits
Replies: 21
Views: 3984

Re: Social Security Survivor Benefits

Does it really make sense to delay past age 60 for someone who has a much higher credit themselves? If they are planning to wait on their own benefit until age 70 and they turn 60 now, it seems like simple math to get all the Survivor payments you can as waiting a year or two are going to lose you m...
by FinancialDave
Mon Sep 11, 2017 12:13 pm
Forum: Investing - Theory, News & General
Topic: 2017 hedge fund contest
Replies: 247
Views: 38136

Re: 2017 hedge fund contest

FYI: In case you haven't been paying attention like me, I just noticed AAPL is up 40% YTD. Not a popular choice amongst the amateur hedge fund managers here. Don't know if this is the same predilection among professionals, but it's well represented in the index funds and popular with the public inv...
by FinancialDave
Fri Aug 25, 2017 11:14 am
Forum: Investing - Help with Personal Investments
Topic: Dan Wiener Independent Advisor for Vanguard Investors
Replies: 43
Views: 13032

Re: Dan Wiener Independent Advisor for Vanguard Investors

The Dan Wiener Independent Adviser is a complete waste of money. You can get all the info you need from Vanguard directly or from Morningstar. Also make sure you are not signed up for auto-renewal since this service does not give refunds after you discover you've been charged. I'm not sure it is a ...
by FinancialDave
Fri Jul 21, 2017 10:43 am
Forum: Investing - Theory, News & General
Topic: Do you pay fees to buy funds or ETFs?
Replies: 46
Views: 3609

Re: Do you pay fees to buy funds or ETFs?

Can you explain the bolded? GEICO insurance is owned by Berkshire and offers a discount to shareholders. I have Geico and didn't know that. How are you expected to prove that you are a stockholder? It is on the honor system, as far as I know. I have never needed to prove I own a share. I'm sure I h...
by FinancialDave
Thu Jul 20, 2017 11:56 pm
Forum: Investing - Theory, News & General
Topic: Backdoor Roth?
Replies: 15
Views: 1550

Re: Backdoor Roth?

The question really is do you want to file an 8606 form with your taxes every year from now until you die, or all your IRA's are empty whichever comes first OR: Do you want a cleaner tax filing season for you and your heirs? If the later is your choice then just do a conversion on some of your IRA m...
by FinancialDave
Mon Jul 17, 2017 12:56 pm
Forum: Investing - Theory, News & General
Topic: Do you pay fees to buy funds or ETFs?
Replies: 46
Views: 3609

Re: Do you pay fees to buy funds or ETFs?

I pay zero to buy/sell any ETF/stock (up to 30/mo.) at Merrill Edge. I have never paid fees to buy funds or ETFs; I probably never will. I paid a stock commission exactly once, to buy 1 share of Berkshire Hathaway, because it would save me more in insurance costs than the commission. I encourage ev...
by FinancialDave
Fri Jun 30, 2017 11:19 pm
Forum: Investing - Theory, News & General
Topic: "Filling Your 401k with Company Stock"
Replies: 41
Views: 5172

Re: "Filling Your 401k with Company Stock"

Ya,
Not a good idea because when that happens (company goes broke) you usually lose your job too! Double whammy!
by FinancialDave
Tue May 16, 2017 4:52 pm
Forum: Investing - Theory, News & General
Topic: Larry Swedroe on the price paid for Socially Responsible Investing
Replies: 10
Views: 1478

Re: Larry Swedroe on the price paid for Socially Responsible Investing

All I can say on this topic is "Not all Socially Responsible Funds are created equal." I can back this up with my own real life experience which now has about 10 years under it's belt in my granddaughter's 529 plan. When I originally set it up about 10 years ago I put one lump sum into it and have n...
by FinancialDave
Tue May 09, 2017 8:28 pm
Forum: Investing - Theory, News & General
Topic: Dividend Fund Slice or Stick To Total Stock Market
Replies: 10
Views: 1525

Re: Dividend Fund Slice or Stick To Total Stock Market

My only reason for even thinking about all of this is to generate a decent enough revenue stream from a taxable account to fund an early retirement. If you want to build a taxable account you need a tax efficient fund, in your case the VTSAX. Once you get to retirement you can sell down some of the...
by FinancialDave
Tue May 09, 2017 11:33 am
Forum: Investing - Theory, News & General
Topic: Dividend Fund Slice or Stick To Total Stock Market
Replies: 10
Views: 1525

Re: Dividend Fund Slice or Stick To Total Stock Market

I don't see a purpose in putting a dividend fund in your taxable account, as this is just going to create a bigger taxable event for you along the way and a smaller retirement. If you want to build a taxable account you need a tax efficient fund, in your case the VTSAX. Once you get to retirement yo...
by FinancialDave
Thu Apr 27, 2017 10:56 am
Forum: Investing - Theory, News & General
Topic: Article on Vanguard Total Stock Market
Replies: 10
Views: 2602

Re: Article on Vanguard Total Stock Market

I admit to being rather naive when it comes to investing. If I wanted to get some small cap/value in my portfolio, what Vanguard funds would I want to look at? Instead of tilting TSM in what I call my retirement paycheck portfolio I use the following that I tweaked from Paul Merriman: 10% bonds spl...
by FinancialDave
Wed Apr 26, 2017 12:41 am
Forum: Investing - Theory, News & General
Topic: Unwinding all positions and buy back after French Elections
Replies: 55
Views: 7045

Re: Unwinding all positions and buy back after French Elections

unclescrooge wrote:
Vanguard Fan 1367 wrote:I love Jack Bogle, "don't do something, just stand there." :happy
Indeed the hardest part about investing is not doing anything!
:sharebeer
by FinancialDave
Tue Apr 25, 2017 4:01 pm
Forum: Personal Finance (Not Investing)
Topic: Why are pensions revered, but annuities reviled?
Replies: 113
Views: 13056

Re: Why are pensions revered, but annuities reviled?

$200 difference in monthly pension. But if you take the $100,000 of your contributions and purchase a private annuity, let's say it yields $5000 a year income or $416.66 a month income. It makes sense then to take the $100,000 withdrawal and get $416.66 a month income even though you're giving up $...
by FinancialDave
Sat Apr 22, 2017 5:02 pm
Forum: Personal Finance (Not Investing)
Topic: Why are pensions revered, but annuities reviled?
Replies: 113
Views: 13056

Re: Why are pensions revered, but annuities reviled?

Ditto that. I know of at least one financial podcaster who says that given the choice between a pension and a 401k with a good match, he'd recommend the 401k every time. I don't dispute the math of this if you know what to use for "future returns earned by the 401k participant." :?: Companies know ...
by FinancialDave
Sat Apr 22, 2017 3:05 pm
Forum: Personal Finance (Not Investing)
Topic: Why are pensions revered, but annuities reviled?
Replies: 113
Views: 13056

Re: Why are pensions revered, but annuities reviled?

I read lots of stuff about the good old days when everyone had a pension, but at the same time whenever anyone brings up annuities people's blood starts to boil. I don't get it. It seems to me that upon retirement, converting some portion of your retirement account into an single-premium immediate ...
by FinancialDave
Mon Apr 10, 2017 2:54 pm
Forum: Investing - Theory, News & General
Topic: What % of People Invest in the Stock Market?
Replies: 29
Views: 6024

Re: What % of People Invest in the Stock Market?

As a totally unscientific assumption consider that the working class is saving maybe 4% of their salary on average and the retired group is spending around 4% on the back end. Considering that household income is similar for those working as those retired. If that was true then we should see the inv...