Search found 1526 matches

by FinancialDave
Mon Jan 15, 2018 2:40 pm
Forum: Investing - Theory, News & General
Topic: REGISTRATION FOR 2018 BOGLEHEAD CONTEST
Replies: 142
Views: 8379

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: 1027

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: 1027

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: 2177

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: 6333

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: 2177

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: 2177

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: 2177

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: 2177

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: 2177

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: 118
Views: 7053

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: 118
Views: 7053

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: 1270

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: 118
Views: 7053

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: 118
Views: 7053

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: 142
Views: 8379

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: 2316

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: 2316

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: 53
Views: 4381

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: 7088

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: 7088

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: 7088

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: 2753

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: 517
Views: 52567

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: 3873

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: 36195

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: 12114

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: 3334

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: 1416

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: 3334

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: 4871

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: 1396

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: 1460

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: 1460

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: 2543

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: 6757

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: 12532

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: 12532

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: 12532

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: 5817

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...
by FinancialDave
Fri Apr 07, 2017 11:33 pm
Forum: Investing - Theory, News & General
Topic: Do Index Funds Drive Apple Up?
Replies: 27
Views: 2944

Re: Do Index Funds Drive Apple Up?

Imagine a company that has four shares in circulation, and whose only values comes from $100 in the bank. Market Cap: $100 Share Price: $25 Alternative A: Dividends Let's say the company pays a $6.25 dividend per share, for a total of $25 in dividends. There are still 4 shares outstanding. Market C...
by FinancialDave
Thu Apr 06, 2017 9:19 pm
Forum: Investing - Theory, News & General
Topic: Retirement Equity Glide path with 2-3 years of expenses in cash
Replies: 13
Views: 1594

Re: Retirement Equity Glide path with 2-3 years of expenses in cash

I agree that 30/70 is way too conservative for most, but each person needs to sleep at night. To some extent I believe in not making huge changes to your asset allocation all at once, but certainly I can see no reason to go beyond 50/50 as this is plenty conservative especially with some cash in the...
by FinancialDave
Thu Mar 23, 2017 11:27 am
Forum: Investing - Theory, News & General
Topic: Why nobody talk about cash allocation ?
Replies: 17
Views: 2460

Re: Why nobody talk about cash allocation ?

I don't really see how the amount of cash you hold has anything to do with the amount of funds you have saved. That is because the very reason for holding cash (in most cases) is to satisfy a need such as to tide you over if you lose your job or in retirement to last a certain number of years in a r...
by FinancialDave
Thu Mar 23, 2017 11:19 am
Forum: Investing - Theory, News & General
Topic: "Rising Equity Glide Path" ?
Replies: 40
Views: 6611

Re: "Rising Equity Glide Path" ?

A couple of clarifications or assumptions on my initial post. (Dave thanks for the very well thought out and articulate reply). 3) I am at the point where 4 years of cash is only 10%, so a lot of this is probably easier than it could be if numbers were more challenging. However I am planning on a 4...
by FinancialDave
Wed Mar 22, 2017 11:40 am
Forum: Investing - Theory, News & General
Topic: "Rising Equity Glide Path" ?
Replies: 40
Views: 6611

Re: "Rising Equity Glide Path" ?

Bogles: Reposting this here in the right thread. My main question is if anyone has punched the numbers on historical returns with a monthly dollar cost-averaging back into the stock market starting in retirement. (See below) I've been reading a bit in AAII about starting conservative with allocatio...
by FinancialDave
Wed Mar 01, 2017 6:44 pm
Forum: Investing - Theory, News & General
Topic: IRA Conversion
Replies: 5
Views: 522

Re: IRA Conversion

We are in our early 30's and are also in the 15% bracket. The amount involved is about $63k. Would doing a Roth conversion be beneficial for us? There is really no way to know the answer to your question, unless you can predict your tax rates in retirement some 30-40 years from now. However, let's ...
by FinancialDave
Wed Mar 01, 2017 6:07 pm
Forum: Investing - Theory, News & General
Topic: Market up but VTSAX down???
Replies: 21
Views: 2556

Re: Market up but VTSAX down???

How about a little longer term thinking:

12 months VTSAX 26+ %, Vanguard 500 ETF 23+%

Dave
by FinancialDave
Wed Mar 01, 2017 6:00 pm
Forum: Investing - Theory, News & General
Topic: ROTH IRA and April Deadline
Replies: 15
Views: 1024

Re: ROTH IRA and April Deadline

Whether or not her future income is low, if her income is currently low, a Roth IRA is the best bet for her earned income right behind the 401(k) up to the match. In other words, I don't see the relevance of future income in the discussion of whether to open a Roth IRA now or not. On the other hand...
by FinancialDave
Wed Mar 01, 2017 5:45 pm
Forum: Investing - Theory, News & General
Topic: ROTH IRA Early Withdrawal and taxes
Replies: 40
Views: 2368

Re: ROTH IRA Early Withdrawal and taxes

Thanks so much for the response. So just to make sure I understand, if I were to contribute to the 2016 year right now (in 2017), would this mean my contributions are for tax year 2016, or 2017? I just think I am confusing myself. It is up to you to specify to your institution holding the Roth that...
by FinancialDave
Wed Mar 01, 2017 1:23 pm
Forum: Investing - Theory, News & General
Topic: ROTH IRA and April Deadline
Replies: 15
Views: 1024

Re: ROTH IRA and April Deadline

You may want to read this for the specifics: https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-savings-contributions-savers-credit What you need to be sure of is that the Roth contribution is made for year 2016, if that is done then she can claim the credit provided she meets...