Search found 1507 matches

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: 6648

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: 6648

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: 6648

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: 2475

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: 484
Views: 44202

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: 3818

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: 229
Views: 31268

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: 11601

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: 3205

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: 1350

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: 3205

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: 4761

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: 1378

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: 1415

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: 1415

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: 2513

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: 6573

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: 12057

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: 12057

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: 12057

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: 5676

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: 2862

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: 1552

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: 2403

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: 6509

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: 6509

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: 504

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: 2512

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: 958

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: 2303

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: 958

Re: ROTH IRA and April Deadline

You may want to read this for the specifics: m 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 the other IRS criteria. You can even claim the credit on your tax return before you deposit the Roth funds,...
by FinancialDave
Sat Feb 18, 2017 3:58 pm
Forum: Investing - Theory, News & General
Topic: Why is American funds returns too good to be true?
Replies: 45
Views: 5793

Re: Why is American funds returns too good to be true?

I am looking at the below annual report from American Funds. Look at page 12 and on. This is as of 12.31.2015 m All not almost but all funds beat their indexes. How is this possible? Are these returns net of expenses? I must be missing something here. Can someone tell me how all these funds are so ...
by FinancialDave
Fri Feb 17, 2017 2:01 pm
Forum: Investing - Theory, News & General
Topic: Theory on whether to go Roth 401k
Replies: 89
Views: 8188

Re: Theory on whether to go Roth 401k

Is it not obvious that tax rate is a function of account balance for tax deferred accounts? Not to me. Since the first day I was filing paper returns I think the tax rate was always about the size of your "taxable income." Not the size of any account I had, nor even the size of the withdr...
by FinancialDave
Fri Feb 17, 2017 12:37 pm
Forum: Investing - Theory, News & General
Topic: Theory on whether to go Roth 401k
Replies: 89
Views: 8188

Re: Theory on whether to go Roth 401k

Is it not obvious that tax rate is a function of account balance for tax deferred accounts? Not to me. Since the first day I was filing paper returns I think the tax rate was always about the size of your "taxable income." Not the size of any account I had, nor even the size of the withdr...
by FinancialDave
Thu Feb 16, 2017 11:53 am
Forum: Investing - Theory, News & General
Topic: Roth IRA vs 401k
Replies: 27
Views: 1808

Re: Roth IRA vs 401k

Klangfool, In any case, this is a pointless discussion for many people like me. I max up my HSA, Trad. 401Ks, Roth IRAs and for most years, no mega backdoor Roth IRA option. I do not like 529. So,I have to invest in the taxable account and do the best that I can. I do not mean to discount what you a...
by FinancialDave
Thu Feb 16, 2017 1:07 am
Forum: Investing - Theory, News & General
Topic: Roth IRA vs 401k
Replies: 27
Views: 1808

Re: Roth IRA vs 401k

There is also a very good reason why most would suggest you spend down your taxable account before digging into your Roth account, as I don't see any way where the taxable account wins over the Roth. Also the only reason to put money into the taxable account is because you can't put it in the Roth....
by FinancialDave
Thu Feb 16, 2017 12:48 am
Forum: Investing - Theory, News & General
Topic: Roth IRA vs 401k
Replies: 27
Views: 1808

Re: Roth IRA vs 401k

BrandonBogle wrote:Don't forget taxable getting a step up in basis on the date of your death when passing to your heirs


If you pay a penney of tax after the step-up, Roth still wins.
by FinancialDave
Wed Feb 15, 2017 7:58 pm
Forum: Investing - Theory, News & General
Topic: Roth IRA vs 401k
Replies: 27
Views: 1808

Re: Roth IRA vs 401k

There is also a very good reason why most would suggest you spend down your taxable account before digging into your Roth account, as I don't see any way where the taxable account wins over the Roth. Also the only reason to put money into the taxable account is because you can't put it in the Roth. ...
by FinancialDave
Wed Feb 15, 2017 3:31 pm
Forum: Investing - Theory, News & General
Topic: Theory on whether to go Roth 401k
Replies: 89
Views: 8188

Re: Theory on whether to go Roth 401k

Also, to be totally clear about taxable accounts, they can NEVER win over a tax-advantaged account, at best they can be equal at a zero tax rate. This is predicated that you compare the money you had to earn in the first place to put it in any account, as I always do! Dave I must be missing somethi...
by FinancialDave
Mon Feb 13, 2017 6:16 pm
Forum: Investing - Theory, News & General
Topic: Theory on whether to go Roth 401k
Replies: 89
Views: 8188

Re: Theory on whether to go Roth 401k

FinancialDave, I am interested in reading and understanding how you arrive at 1 million to 2 million tax-deferred portfolios. Is it strictly by Trad. 401K? I could not get there even though I max up single Trad. 401K account whenever I can over 20+ years. KlangFool The size of portfolio you have is...
by FinancialDave
Mon Feb 13, 2017 5:56 pm
Forum: Investing - Theory, News & General
Topic: Theory on whether to go Roth 401k
Replies: 89
Views: 8188

Re: Theory on whether to go Roth 401k

Also, to be totally clear about taxable accounts, they can NEVER win over a tax-advantaged account, at best they can be equal at a zero tax rate. This is predicated that you compare the money you had to earn in the first place to put it in any account, as I always do! Dave I must be missing somethi...
by FinancialDave
Mon Feb 13, 2017 3:36 pm
Forum: Investing - Theory, News & General
Topic: Roth IRA vs 401k
Replies: 27
Views: 1808

Re: Roth IRA vs 401k

I understand a lot of factors contribute to this debate. The general consensus is that if you are in a higher tax bracket and get a company match, go with 401k.If your in a low tax bracket with no match, do the Roth first. This makes sense to me, however I feel that there is one very important fact...
by FinancialDave
Mon Feb 13, 2017 12:37 pm
Forum: Investing - Theory, News & General
Topic: Theory on whether to go Roth 401k
Replies: 89
Views: 8188

Re: Theory on whether to go Roth 401k

I didn't read all of the previous posts, so I'm not sure if this was mentioned. The whole point is to contribute to a Traditional 401k and then retire early. In the period from when you retire to before you begin taking SS (at 70), do Roth conversions to fill up the lower brackets. This is the tax ...
by FinancialDave
Mon Feb 13, 2017 12:20 pm
Forum: Investing - Theory, News & General
Topic: Theory on whether to go Roth 401k
Replies: 89
Views: 8188

Re: Theory on whether to go Roth 401k

You don't need a calculator to know that it doesn't matter what return is in which account. You can do this math on a napkin. Earn $5,000 and put it in apple stock earning 20% a year for 30 years and then withdraw it at a 25% tax rate - what do you have left. Dave Now run the math if instead of hav...
by FinancialDave
Mon Feb 13, 2017 11:29 am
Forum: Investing - Theory, News & General
Topic: Theory on whether to go Roth 401k
Replies: 89
Views: 8188

Re: Theory on whether to go Roth 401k

To clarify: I'm making the assumption that one is *not* invested entirely in tax-advantaged accounts, or at least that such an option is on the table. So for instance if you're looking to invest $24K/year and are hitting the 18K/year 401(k) maximum and are in the 25% tax bracket, you're looking at ...
by FinancialDave
Sat Feb 11, 2017 12:51 pm
Forum: Investing - Theory, News & General
Topic: Theory on whether to go Roth 401k
Replies: 89
Views: 8188

Re: Theory on whether to go Roth 401k

It doesn't matter what return is in which account? I guess they should delete this wiki page in that case m I'm open to missing something obvious here, but it clearly matters a great deal what you put where if you have multiple types of account. But don't take my word for it - hold all else equal a...
by FinancialDave
Sat Feb 11, 2017 12:20 pm
Forum: Investing - Theory, News & General
Topic: Theory on whether to go Roth 401k
Replies: 89
Views: 8188

Re: Theory on whether to go Roth 401k

it absolutely doesn't matter how long the funds are in any account. This is definitely not true. One of the benefits of tax advantaged accounts is an effectively higher rate of return through either the deferral or non-taxation of dividends. If invested long enough, this effect will dominate tax an...
by FinancialDave
Fri Feb 10, 2017 6:43 pm
Forum: Investing - Theory, News & General
Topic: Theory on whether to go Roth 401k
Replies: 89
Views: 8188

Re: Theory on whether to go Roth 401k

Ok, that is certainly possible and I even agree with the fact that retirees will most often have a lower overall tax rate, however during my first two years of retirement I paid off a $180k mortgage -- how do you do that if you only have tax-deferred money without affecting your tax rate? I'd argue...
by FinancialDave
Fri Feb 10, 2017 6:00 pm
Forum: Investing - Theory, News & General
Topic: Theory on whether to go Roth 401k
Replies: 89
Views: 8188

Re: Theory on whether to go Roth 401k

Second, for typical retirees, the benefit of tax deferment beats the Roth option by a significant margin. This indicates you don't understand the principals as it absolutely doesn't matter how long the funds are in any account. Go back to rule number one as only the tax rates matter. You misunderst...
by FinancialDave
Fri Feb 10, 2017 5:57 pm
Forum: Investing - Theory, News & General
Topic: Theory on whether to go Roth 401k
Replies: 89
Views: 8188

Re: Theory on whether to go Roth 401k

My general conclusion is this: it oversimplifies things too much to just assume similar rates of return for taxable and tax-advantaged. I'd love to see a calculator that allows for even more detailed examination of things, like: what if I have a Traditional 401(k) with low-yield bonds, and Roth 401...