Search found 66 matches

by envinv
Fri Nov 17, 2023 4:23 pm
Forum: Personal Finance (Not Investing)
Topic: Pension Service Credit Purchase
Replies: 12
Views: 1666

Re: Pension Service Credit Purchase

Well I spoke with my pension and 457b administrators and the information was not what I had hoped for. I asked if there would be any tax benefit (e.g., a portion of my pension annuity being income tax-free) if I purchase the additional years of service credit using money that I have already paid income taxes on, whether it be from the ROTH 457b or from my personal bank account. I was told that no, there will not be a tax benefit and my entire pension annuity will be subject to income taxes regardless of if the service credit is purchased with pretax or post tax funds. That didn't sit right with me, so I starting digging into the IRS website. Topic No. 411 seems to indicate to me exactly what I thought was going to be the case for post-tax p...
by envinv
Wed Nov 15, 2023 11:21 am
Forum: Personal Finance (Not Investing)
Topic: Pension Service Credit Purchase
Replies: 12
Views: 1666

Re: Pension Service Credit Purchase

Thank you all for the input. It certainly gave me several things to think over. I need to look into how pretax or after tax funds used to purchase the service credit will affect the pension. If I buy three years of credit and end with 29 years instead of 26 years of credit, those three years of purchased credit will be 10% of my total service credit. I had assumed that if I were to buy those three years with after tax funds that it wouldn't necessarily result in 10% of my pension annuity being tax free. I had assumed that only the dollar value of my post tax purchase payment (in this case $14,376 for one year of service) would return to me tax free through the pension payments, but not necessarily a tax free return of the equivalent percent...
by envinv
Tue Nov 14, 2023 5:41 pm
Forum: Personal Finance (Not Investing)
Topic: Pension Service Credit Purchase
Replies: 12
Views: 1666

Re: Pension Service Credit Purchase

Thanks for sharing your experience, tibbitts. You are correct, no COLA pension. Every now and then I hear about the administrators asking the legislature for increases for existing retirees, but I don't know how often they ask or how often that is approved.

I have a ROTH IRA that I've been maxing for many years, but I'm still heavy in pretax retirement savings. The ROTH 457b is attractive in that regard and I plan to invest in it regardless of the service purchase decision. That decision will mostly just impact how much gets directed to the 457b and when. Thanks for that input!
by envinv
Tue Nov 14, 2023 4:41 pm
Forum: Personal Finance (Not Investing)
Topic: Pension Service Credit Purchase
Replies: 12
Views: 1666

Pension Service Credit Purchase

I am trying to decide if purchasing additional service credit with my state pension plan would be wise...or not. I have very high confidence in the solvency of my state's pension plan, so I'm not concerned about that at all and really isn't factoring into my decision making. The pension annuity at retirement is calculated by: (years of service x average annual salary based on the three highest years x 2.3%) I currently have 11 years of service with 15 years until retirement (62 at retirement). So at retirement I'm looking at 26 years of service and a pension that will pay 59.8% of my average salary from my three highest salaried years. I have the option to buy up to three more years of service credit (in one year increments), if I want to. ...
by envinv
Wed Sep 06, 2023 3:00 pm
Forum: Personal Finance (Not Investing)
Topic: Paying off my mortgage
Replies: 18
Views: 2448

Re: Paying off my mortgage

Congratulations! I just paid off my mortgage last week as well! The first thing I did was call the mortgage company to get information on the fees they would charge. These were limited to: Recording Fee: $30.00 Cancellation Fee: $17.50 Wire Fee: $12.00 Then I talked with my bank about the wire process. I could submit it online for same day delivery for a $30 fee. Next was to request a payoff statement from the mortgage company. I planned to pay it off on 9/1, but requested a 9/5 estimated payoff date to be on the safe side. I received the payoff statement which included interest calculation through 9/5, and I sent the wire transfer on 9/1. Later this month I expect to get a very small check back from the mortgage company for some of the cal...
by envinv
Tue May 12, 2015 8:37 pm
Forum: Personal Consumer Issues
Topic: (Mortgage) Prequalifing vs. Applying
Replies: 9
Views: 1461

Re: (Mortgage) Prequalifing vs. Applying

Thanks for all of the information. I wonder if I should explain to the lender what I really want. I am not expecting them to lock me into an interest rate and legally commit to a closing cost plus or minus 10%. That is ridiculous for me to expect this far from closing (5-6 months). All I want is a better idea of what I am facing for closing costs. That said, they told me that they could give me the GFE after they received the signed contract between me and the builder, along with the executed earnest receipt from the title company. All of which have been provided. Maybe I'll still get a GFE from them, but only time will tell. Side note, I got a credit score disclosure letter in the mail from the lender today. It says that experian scores me...
by envinv
Mon May 11, 2015 9:59 pm
Forum: Personal Consumer Issues
Topic: (Mortgage) Prequalifing vs. Applying
Replies: 9
Views: 1461

Re: (Mortgage) Prequalifing vs. Applying

Thanks for the replies and helpful information. After reading these I realized that I didn't get a prequalification letter, I got a preapproval letter. I didn't realize there was a difference. The builder kept calling it a prequalification. The lender pulled my credit (which I tried to avoid given how far away from closing I am and will have to have my credit pulled again when it is time to formally apply) and I gave them W2s, paystubs, and what seemed like the whole nine yards. I looked at the letter again and sure enough it says preapproval. I finally heard back from the lender this evening regarding the GFE. I haven't received it yet, but it is in the works. I'm not sure if the lender is doing it because they have to or if they are just ...
by envinv
Mon May 11, 2015 8:18 pm
Forum: Personal Consumer Issues
Topic: What Book Are You Currently Reading? Part VI
Replies: 7650
Views: 1723622

Re: What Book Are You Currently Reading? Part VI

Stephen King's Wolves of the Calla...again. Getting a little bit hyped on the positive news for the restarting theatrical Dark Tower endeavor.
by envinv
Mon May 11, 2015 8:03 pm
Forum: Personal Consumer Issues
Topic: (Mortgage) Prequalifing vs. Applying
Replies: 9
Views: 1461

(Mortgage) Prequalifing vs. Applying

I was recently prequalified for a mortgage and put earnest down on a new construction which won't be ready to close for 5-6 months. I didn't shop around lenders because all I truly needed right now was a prequalifing letter to satisfy the builder. I plan to shop around lenders when I am closer to closing and am able to get the interest rate locked in. That said, I still really want the good faith estimate from the lender that prequalified me. I'm a first time buyer and an obsessive budgeter. I haven't been able to get the lender to give me the GFE despite asking a few times. I've read that lenders are required to give borrowers a GFE within 3 days of applying for a mortgage loan. My questions are what is the difference between applying for ...
by envinv
Fri Feb 13, 2015 7:46 am
Forum: Personal Consumer Issues
Topic: Home Buying the Boglehead Way (1st Time Buyer)
Replies: 46
Views: 12119

Re: Home Buying the Boglehead Way (1st Time Buyer)

I bought my first home last summer and used Redfin, and I am happy with the results. Through the Redfin site, I set up an automatic search that sent me an email as soon as a house fitting my "wish list" came on the market. Usually I was able to schedule a tour for the next day (or even same-day). My market (Northern Virginia), while not technically "sizzling", was still considered a seller's market. I don't believe you need an agent "aggressively finding" anything, when the interwebs can search automatically. Plus, I got thousands back at closing to put toward my down payment. Thanks for the response, and I'm hoping you would elaborate a little bit more. Did you use a buyer's agent at all? What did you do spec...
by envinv
Wed Feb 11, 2015 8:00 am
Forum: Personal Consumer Issues
Topic: Home Buying the Boglehead Way (1st Time Buyer)
Replies: 46
Views: 12119

Re: Home Buying the Boglehead Way (1st Time Buyer)

Thank you all for the great advice and for sharing your experiences. Thanks for your input on mortgage points grabiner. I was looking into those a bit as well and I still need to learn more. I've practically committed myself to not buying without 20% down to avoid PMI and to get the best interest rate I can. As a result, depending on the purchase price, I may not be able to afford 20% down, closing costs, moving costs, and additional points on top by the time I would like to buy. I don't see this as an indicator of my ability to manage/afford buying a home. It is more a factor of my desired timeline. If I buy in 8 months then points might be a stretch. In 12 months they become more of a possibility. Thanks again to all, and special thanks t...
by envinv
Thu Feb 05, 2015 10:57 am
Forum: Personal Consumer Issues
Topic: Home Buying the Boglehead Way (1st Time Buyer)
Replies: 46
Views: 12119

Re: Home Buying the Boglehead Way (1st Time Buyer)

Thank you both very much for your input. I will keep this information in mind!
by envinv
Tue Feb 03, 2015 9:14 am
Forum: Personal Consumer Issues
Topic: Home Buying the Boglehead Way (1st Time Buyer)
Replies: 46
Views: 12119

Home Buying the Boglehead Way (1st Time Buyer)

I'm not sure if there is a true boglehead way for home buying, but I'm trying to learn a lot more about the costs and process. I trust this community for educated advice on financial issues, so I'm reaching out to you. I'm hoping to buy my first home in about 8-12 months. I have outstanding credit, will have no debt (loans) by that time, and I do not carry revolving balances on my credit cards. I imagine myself buying an innercity townhouse worth 160k-200k and will have 20% down. I'm hoping/planning to stay in this home for a very long time. I love my job and employer, and I see myself staying with them for the haul. I believe a 30yr FRM will be right for me. That said, I don't know much about finding a lender, buyer's realtor, underwriter,...
by envinv
Wed Apr 02, 2014 10:31 am
Forum: Personal Investments
Topic: Pension Service Credit Purchase
Replies: 6
Views: 752

Re: Pension Service Credit Purchase

Thanks for the input and your experience with your service purchase, BL. I have to purchase the credit in 1, 2, or 3 year allotments.
by envinv
Wed Apr 02, 2014 9:41 am
Forum: Personal Investments
Topic: Pension Service Credit Purchase
Replies: 6
Views: 752

Re: Pension Service Credit Purchase

Thank you for your input, and you are correct that things can change, but this affects what I will do with a large part of my savings between now and then. Do I want to stuff it in a 401k (no match), use it as a down payment on a home, or do I want to save it for service credit? The service credit purchase with be tens of thousands of dollars. I can't decide that I want to do it on the date that I'm eligible without planning for it in advance. I will certainly revisit the decision when I am eligible, but I have to plan for it now if it seems like purchasing the credit is a smart thing to do.
by envinv
Wed Apr 02, 2014 9:07 am
Forum: Personal Investments
Topic: Pension Service Credit Purchase
Replies: 6
Views: 752

Re: Pension Service Credit Purchase

Thank you for the response. You are correct in your assumptions. The 15% is based on current salary. They use age (time until retirement) to calculate the cost as well. In five years, I'll be closer to retirement, so they will charge me a higher percentage, and it will keep going higher the closer I get to retirement, so the sooner the better for the service purchase I believe. I don't know how much higher that percentage will be, but I used 20% to ballpark my 6-8 year payoff duration. Also as you guessed the 2.3% will be based off of the highest 4 annual salaries of my career (most likely the last 4, but you never know). I can't take a payout of leave to increase salary for annuity calculation purposes, but I can take unused leave at retir...
by envinv
Wed Apr 02, 2014 8:10 am
Forum: Personal Investments
Topic: Pension Service Credit Purchase
Replies: 6
Views: 752

Pension Service Credit Purchase

I'm interested in hearing some opinions on purchasing service credit for pensions. In 5 years I'll be able to purchase a one time service credit of 3 years. Three years of service credit will increase my annuity by 6.9%. I absolutely love my job and plan to stay with my employer until retirement. Based on my information, the pension is currently one of the most sound in the US. I do not know exactly how much it will cost, because they will not provide the estimate until I'm eligible for the purchase 5 years from now. I did have a "waiting period" when I first started, and I was able to purchase service credit for those months, so I'm using that as a ballpark to start my own estimate. The service credit was 15% of my monthly salary...
by envinv
Fri Feb 07, 2014 2:22 pm
Forum: Investing - Theory, News & General
Topic: Why so many Roth IRAs?
Replies: 44
Views: 6322

Re: Why so many Roth IRAs?

Thanks for the response. I guess there was some bad information earlier in the thread. The income limits have nothing to do with whether or not your employer offers a 401k. edit: Oops, it looks like there are tighter income limits if your employer offers a retirement plan. I'd assume that a pension counts as a retirement plan so I'm subject to the tighter income limits for deductions on traditional contributions. The limits I posted are for people covered by an employer retirement plan. These are the limits for those NOT covered by an employer retirement plan: http://www.irs.gov/Retirement-Plans/Plan-Participant,-Employee/2014-IRA-Contribution-and-Deduction-Limits---Effect-of-Modified-AGI-on-Deductible-Contributions-if-You-are-NOT-Covered-...
by envinv
Fri Feb 07, 2014 2:01 pm
Forum: Investing - Theory, News & General
Topic: Why so many Roth IRAs?
Replies: 44
Views: 6322

Re: Why so many Roth IRAs?

This leaves me with a question... am I also prohibited from using a traditional IRA because of my employer's 401/457? Anyone* can contribute to a traditional IRA, but there are strict income limits in order to be able to deduct those contributions. These are the income limits: Single: <$60,000 for full deduction, <$70,000 for partial deduction. Married Joint: <$96,000 for full deduction, <$116,000 for partial deduction. Married Separate: Full deduction not possible, <$10,000 for partial deduction. These are the 2014 values. 2013 values were $1000 less, except for the Married Separate value which seem to be permanently stuck at $10K for some reason. http://www.irs.gov/Retirement-Plans/Plan-Participant,-Employee/2014--IRA-Contribution-and-De...
by envinv
Fri Feb 07, 2014 1:46 pm
Forum: Investing - Theory, News & General
Topic: Why so many Roth IRAs?
Replies: 44
Views: 6322

Re: Why so many Roth IRAs?

I was not aware that you could not contribute to a traditional IRA if your employer offers a 401k. (edit: That statement is false. Keep reading the thread.)

My employer offers a fairly non-traditional 401/457 in that there is no match at all. They provide a pension, so no match in the 401/457 makes sense since they are already contibuting to my retirement income. I currently max my Roth IRA before the 401/457 because I have better investment options (index) in my IRA than the menu options in the 401/457.

This leaves me with a question... am I also prohibited from using a traditional IRA because of my employer's 401/457?
by envinv
Wed Jun 13, 2012 3:04 pm
Forum: Personal Finance (Not Investing)
Topic: A Letter to My Son: Financial Advice for Life
Replies: 31
Views: 4280

Re: A Letter to My Son: Financial Advice for Life

"one day I’ll need to apologize for making you sit through several hundred renditions of Yertle the Turtle"

"Possibly the best book ever written on the subject of turtle stacking." Lisa Simpson

Good job, dad!
by envinv
Fri May 18, 2012 8:22 am
Forum: Investing - Theory, News & General
Topic: Vanguard: Specific Identification and Redemption Fees
Replies: 3
Views: 871

Re: Vanguard: Specific Identification and Redemption Fees

Thanks very much for the info, you both. Determining the fees based on first in first out makes a lot of sense.
by envinv
Thu May 17, 2012 3:51 pm
Forum: Investing - Theory, News & General
Topic: Don't time the market?
Replies: 48
Views: 4988

Re: Don't time the market?

I don't perceive myself to be a Market Timer, but in some minor ways I might just a little bit. I bought more of my international index in my taxable today because it is lower than it has been all year and lower than my overall cost basis in the fund. If it goes down more I very likely might buy more. Am I timing? Yeah, a little bit I guess. I'm in my accumulation phase. I feel like it is a good thing for me to buy when things are down. I've never timed an exit though. I buy to hold (other than a little tax loss harvesting here and there which in a way is timing in a sense also I'd guess). Am I guilty of anti-boglehead market timing?
by envinv
Thu May 17, 2012 3:12 pm
Forum: Investing - Theory, News & General
Topic: Vanguard: Specific Identification and Redemption Fees
Replies: 3
Views: 871

Vanguard: Specific Identification and Redemption Fees

I don't know if this discussion would be best suited in the Personal Investing Help forum or in the Investing Theory and General forum. It is a little of both. If the moderators think it would be better in the Personal Help forum, feel free to relocate it. This is a Vanguard specific question and I realize I'm not exactly asking the right people. The problem is, I asked Vanguard twice and got two different answers. I'm not trying to fault them for that though, as I may not have expressed my question in the best way. Vanguard International Index Funds (VGTSX and VFWIX for example) all have an alert when submitting an order which states "This fund has a 2% redemption fee for shares held less than 2 months." Previously, before Vangua...
by envinv
Wed May 09, 2012 1:04 pm
Forum: Personal Investments
Topic: TLH International Vanguard Funds
Replies: 12
Views: 994

Re: TLH International Vanguard Funds

I just placed my exchange order, and not only do I not want to sell my shares of VFWIX for 2 months to avoid the 2% fee, but Vanguard will not let me buy back into VGTSX for 60 days per their frequent trading policy. Thanks for the input from everyone.
by envinv
Wed May 09, 2012 11:15 am
Forum: Personal Investments
Topic: TLH International Vanguard Funds
Replies: 12
Views: 994

Re: TLH International Vanguard Funds

Vanguard International Funds (not ETFs) have that pesky 2% fee if you sell after less than 2 months. That is my reasoning for staying in VFWIX for 60 days.
by envinv
Wed May 09, 2012 9:24 am
Forum: Personal Investments
Topic: TLH International Vanguard Funds
Replies: 12
Views: 994

Re: TLH International Vanguard Funds

Thanks for the input you all.

My thoughts on the future VFWIX sale possibilities: If there are capital gains that are less than or equal to the capital losses that I harvested from the sale of VGTSX, I will go ahead and make the swap back to VGTSX. If the short term capital gains exceed the harvested losses, I may leave it until the gains are long term (though that will be 2013 and who knows what the capital gains tax law will look like then...). Ultimately, I won't be unhappy if I end up with a permanent VFWIX holding. The expense ratio is a little bit higher than VGTSX, but it seems to be a very similar fund so it will work well with my International Asset Allocation.
by envinv
Wed May 09, 2012 8:57 am
Forum: Personal Investments
Topic: TLH International Vanguard Funds
Replies: 12
Views: 994

TLH International Vanguard Funds

I have a small holding of VGTSX - Vanguard Total International Stock Index in my taxable account which is currently at a short term capital loss. I have been wanting to sell out since the shares are uncovered and it is a relatively small account. I plan to buy back in so that my entire taxable portfolio will have covered shares and it will be easier for me to handle Specific Identification. I don't want to sit on the sidelines while Vanguard has the account locked out of the fund though. My plan is to sell VGTSX to harvest the loss and immediately buy into VFWIX - Vanguard FTSE All-World ex-US Index. Then after 2 months, swap back to VGTSX. I will accomplish my desire to have my entire taxable portfolio in covered shares, and I will have ha...
by envinv
Fri Mar 23, 2012 10:24 am
Forum: Personal Consumer Issues
Topic: What Book Are You Currently Reading? Part V
Replies: 3372
Views: 1564966

Re: What Book Are You Currently Reading? Part V

I'm currently reading two books:
A Storm of Swords by George R. R. Martin
Battle for the Abyss by Ben Counter

Both books are part of different very large/long series. I can only spend so much time in any one world so to speak before I need a little variety so that is why I'm working on two books at once.
by envinv
Fri Mar 23, 2012 10:05 am
Forum: Personal Finance (Not Investing)
Topic: interview request after just starting new job
Replies: 5
Views: 1395

Re: interview request after just starting new job

I was in this exact situation a few years back after I had lost my job. I interviewed for two different companies. Initially, I did not get an offer for my first choice but I did for the second. I took the second choice job and about 6 weeks later I got a call from my first choice. They told me they had another opening and would like to give me a second interview if I was still interested. I told them that I was still interested. I took the interview and ended up getting the job. The second job, which was my first choice in the beginning, was much more along my desired career path so I'd probably do it again if faced with a similar situation. It was a very easy decision for me because the job I left was a temp to hire position. When turning...
by envinv
Tue Jan 03, 2012 8:56 am
Forum: Personal Finance (Not Investing)
Topic: Bank of America ACH fee @#%^@#
Replies: 29
Views: 13780

Re: Bank of America ACH fee @#%^@#

I've been with BofA since they were Nations Bank and never had a problem with fees. My pay checks are direct deposited (which my employer requires anyway) and that is enough to get me free checking. When I transfer money to Vanguard or my Amex savings I always pull money from BofA and have never been hit with ACH transfer fees. I did weigh my options during the proposed debit card "fee-asco", but thankfully that didn't pan out. As others have recommended, schedule your ACH transfers through the institution that you want to pull your funds to and you can probably skirt around those fees.
by envinv
Wed Dec 28, 2011 10:00 am
Forum: Investing - Theory, News & General
Topic: VANGUARD WILL TAKE COST BASIS QUESTIONS HERE
Replies: 77
Views: 13107

Re: List your cost basis reporting questions here

Thank you for starting this thread! I currently have two taxable holdings at vanguard (uncovered shares). I've decided to use specific ID and have a couple of questions.

1) On the vanguard cost basis resource center it states that using specific ID will require better record keeping on my part. What specific records do I need to keep for specific ID?

2) Secondly, what is the procedure for selling specific ID lots through vanguard? I've read that these requests must be done through the mail. Is that true? If so, is there a form or any formal format that the mailed request needs to adhere to?

Thanks for the help!
by envinv
Mon Dec 19, 2011 4:48 pm
Forum: Investing - Theory, News & General
Topic: Grok's Tip #11: Take Grok's pledge!
Replies: 188
Views: 33997

Re: Grok's Tip #11: Take Grok's pledge!

I'm not certain I can take the pledge based on potential noncompliance with #5, TIPS or iBonds. I currently do not hold either of these as a separate allocation. Does my slice of Total Bond Market (VBMFX, BND) include either of these?
by envinv
Thu Dec 15, 2011 9:11 am
Forum: Personal Investments
Topic: Any drawback to 457 instead of taxable?
Replies: 21
Views: 2625

Re: Any drawback to 457 instead of taxable?

Hi chisey,

I've also had to think about 457 vs. taxable. A lot of the decision will hinge on how long you work for the employer and the cost difference between the fund choice you would buy in the 457 to the fund you would buy in the taxable.

to quote grabiner who previously gave me the following advice on my 457 vs. taxable decision:
grabiner wrote: My rule of thumb is to multiply the expense difference by the number of years you expect to stay with the same employer, and consider taxable investing instead if the product exceeds 30%. Few people are in that situation...
by envinv
Wed Dec 07, 2011 12:37 pm
Forum: Personal Investments
Topic: Thoughts on this 401k/457 Plan
Replies: 3
Views: 482

Re: Thoughts on this 401k/457 Plan

Thanks for the response, Brian. 1/12th of the fee is actually assessed monthly. I just put the annual #s to make the data more concise. I figure that at $8,000 the fee is approximately 0.6%, which while still high is much more reasonable than the absurd fee % while at lower balances. From then on each fee tier ranges from approximately .5% to 0.237%. The fee will never fall below 0.237% until the balance exceeds approximately $80,000. Based entirely on my projected rate of contribution, not considering potential gains or losses, nor considering losses to the fees, it will take me 20 years to exceed $80,000 in this account (this would be my third account that gets contributed to following my pension and IRA contributions). Also it is likely ...
by envinv
Wed Dec 07, 2011 10:16 am
Forum: Personal Investments
Topic: Thoughts on this 401k/457 Plan
Replies: 3
Views: 482

Thoughts on this 401k/457 Plan

I've been looking into the retirement savings options at a likely future employer. The main plan is a traditional defined benefit pension. They also offer a 401k/457 savings plan. There is no employer match. The good side of the 401k/457 is that there are a few decent passive investing options: Wells Fargo Advantage Dow Jones Target Date Funds: Target Today Fund (WOTDX) 0.20% er Target 2010 Fund (WFOAX) 0.23% er Target 2015 Fund (WFSCX) 0.24% er Target 2020 Fund (WFOBX) 0.25% er Target 2025 Fund (WFTYX) 0.25% er Target 2030 Fund (WFOOX) 0.26% er Target 2035 Fund (WFQRX) 0.27% er Target 2040 Fund (WFOSX) 0.27% er Target 2045 Fund (WFQPX) 0.27% er Target 2050 Fund (WFQFX) 0.27% er Target 2055 Fund (WFQUX) 0.27% er Passive Funds: BlackRock Bon...
by envinv
Mon Dec 05, 2011 9:56 am
Forum: Investing - Theory, News & General
Topic: CNBC suggests it might be a good idea to own index funds :)
Replies: 22
Views: 2825

Re: CNBC suggests it might be a good idea to own index funds

natureexplorer wrote:
stevewolfe wrote:
Default User BR wrote:No, it's the part where Jim Cramer's job depends on people not indexing.
Brian
Although Cramer does tell people who are not willing to invest and hour a stock per week in research to buy index funds... ;)
Do you have video clip of him saying that?
I'm fairly certain that I read a comment along those lines in his getting back to even book. I'm a indexer, but I enjoy reading from authors with a differing view so as to have a more balanced understanding.
by envinv
Mon Nov 07, 2011 4:01 pm
Forum: Investing - Theory, News & General
Topic: Dr Timer or: How I Learned to Stop Worrying and Love the Dow
Replies: 60
Views: 5268

Re: Dr Timer or: How I Learned to Stop Worrying and Love the

While this isn't how I invest, I am interested in what you've been doing.

Vanguard Brokerage Services limits selling a particular Vanguard ETF 25 times in a rolling 12 month period before they lock you out from it for 60 days. How do you get around this restriction?
by envinv
Thu Oct 13, 2011 3:01 pm
Forum: Personal Finance (Not Investing)
Topic: Have family members changes affect your outlook?
Replies: 22
Views: 2261

Not long after my paternal grandfather passed, I began to invest in my retirement (the two events were not related though). I talked my ideas over with my father and told him that I was planning on investing in a few market index funds at vanguard. He told me that he thought it was a great idea, though just hearing me talk about investing at all would probably make him proud even if it wasn't indexes. He also told me that my grandfather had all, 100%, of his retirement investments at vanguard. I respect both my father and grandfather and that made me really comfortable with my decision to be a DIY passive index fund investor and that in turn has encouraged me to take my retirement investing more seriously than I would have otherwise.
by envinv
Thu Oct 13, 2011 2:48 pm
Forum: Personal Consumer Issues
Topic: LASIK experiences
Replies: 19
Views: 2677

I had it done a year ago. I was 34 with slight astigmatism and myopic in both eyes. They told me I was an ideal candidate. Now my vision is 20/20 to 20/15 depending on the day. I am incredibly happy with the results. 2 things though: 1) I had HUGE red circular hickies in the white of my eyes (both) for a few weeks afterwards. They looked nasty! Thankfully, they went away after a while. 2) I never noticed floaters in my vision prior to the surgery but I have several now. I don't know if they are a result of the surgery or I never noticed them prior. I wore glasses, not contacts, so I may have never noticed them as I would have attributed any artifacts in my vision as dust or scratches on my glasses. I was bad about taking care of my glasses....
by envinv
Wed Oct 12, 2011 10:10 am
Forum: Investing - Theory, News & General
Topic: Finally! Can we lay DCA to rest and ban this topic forever?
Replies: 506
Views: 49630

I'm having a bit of difficulty applying this discussion to a routine savings situation. I understand the debate that DCA reduces expected returns compared to lump summing a windfall, but what about in regards to regular savings? What is the recommended strategy for investing routine savings (for an annual 5k IRA contribution for example)?

Invest immediately as soon as the money is earned, a little at a time which has a DCA feel to it...

or

Save the money throughout the preceding year and then at the turn of the year max out the next years contribution in a lump sum?
by envinv
Thu Jul 28, 2011 2:14 pm
Forum: Personal Investments
Topic: Annual IRA Contribution Strategy
Replies: 13
Views: 1859

DCA has 2 points in it's favor that are affecting my mindset towards it: #1 it encourages investing right when that money is available The opposite is the case. If you DCA, you are holding some money out of the market and dribbling it in at intervals. Lump sum puts all your money to work immediately. Just for a moment please, put aside your point of view and look at the topic from my situation. It should be clear that if I invest a little bit from each paycheck until I reach my annual IRA contribution limit, I will be investing when the money becomes available. Therefore, my statement rings true, especially compared to the alternative which is holding the money in a savings account and waiting for the turn of the year. #2 the mathematical ...
by envinv
Wed Jul 27, 2011 4:45 pm
Forum: Personal Investments
Topic: Annual IRA Contribution Strategy
Replies: 13
Views: 1859

January 2nd is when I'd do it - let money grow all year This was my original thinking when I started my planning, but then I started thinking about what that money would doing the preceding year. For me, currently that money is sitting on the sidelines waiting for January 2, 2012. DCA has 2 points in it's favor that are affecting my mindset towards it: #1 it encourages investing right when that money is available #2 the mathematical benefits of DCA ensuring that I never jump "all in" at a peak like this year has turned out so far I'm wondering if my current IRA strategy is the best plan or not. It is basically a question of monthly dollar cost averaging into the IRA or lump sum every January 1st. envinv: Because the market bias i...
by envinv
Wed Jul 27, 2011 4:32 pm
Forum: Personal Investments
Topic: Annual IRA Contribution Strategy
Replies: 13
Views: 1859

I welcome heated opinions and enthusiastic advice regarding my current strategy vs. the positive and negatives of more frequent DCA contributions for next year!
by envinv
Wed Jul 27, 2011 3:31 pm
Forum: Personal Investments
Topic: Annual IRA Contribution Strategy
Replies: 13
Views: 1859

Thanks for the replies everyone. This seems like a topic that won't generate highly opinionated responses. Thanks for the input.
by envinv
Wed Jul 27, 2011 8:51 am
Forum: Personal Investments
Topic: Annual IRA Contribution Strategy
Replies: 13
Views: 1859

Annual IRA Contribution Strategy

I'm wondering if my current IRA strategy is the best plan or not. It is basically a question of monthly dollar cost averaging into the IRA or lump sum every January 1st. I started my IRA (Roth) this year and immediately put in the annual maximum contribution of $5,000. I then opened an online savings account into which I direct deposit an amount from my paychecks so that I will have $5,000 saved to max the following years IRA on January 1st. I thought this would be a great savings plan for me. This year I lump summed into the Roth around the end of April 2011, and while I'm not stressed over the losses, I'm left thinking that DCA-ing through the year may have been wiser. Starting next year, would it be better to do my IRA contributions mont...
by envinv
Wed Jun 29, 2011 8:29 am
Forum: Personal Investments
Topic: Portfolio Help, wondering about my risk
Replies: 43
Views: 4096

Thank you very much for the well thought out response, David. It was very helpful. I'm glad that the Roth was not only a good idea, but probably the best idea for my additional retirement savings after my pension contributions. I will continue to max my Roth annually. I've never seen anyone explain the advantage of a Roth over a tIRA when you consider if you have additional money to invest after the IRA is maxed. That makes a lot of sense that I will have more tax deferred money invested with a maxed out Roth. It is very hard for me to estimate how long I will be with my agency. My position historically has had turnover, but none of the people I work with that share my position have the mindset that I do. I enjoy, am proud of, and get paid ...
by envinv
Tue Jun 28, 2011 6:34 pm
Forum: Personal Investments
Topic: Portfolio Help, wondering about my risk
Replies: 43
Views: 4096

1.25% annual M&E Charge <--did you ask if you have to pay this? Sometimes the employer does (but I suspect not in this case) No withdrawal charge after 10 years <--I assume this is not a problem for you? I did not ask about who pays the M&E charge. The contract provisions says that the amount charged is reflected in the accumulation unit value of each such investment option when it is assessed daily (1.25% annualized). I'm pretty sure it comes from my investment but I will ask to be sure. The 10 year withdrawal limitation has loopholes, including termination of employment. I don't see a problem with this limitation. Tax-deferred growth and tax-efficiency are not the same thing. The fact that 500 index is tax-efficient does not mean...
by envinv
Tue Jun 28, 2011 4:27 pm
Forum: Personal Investments
Topic: Portfolio Help, wondering about my risk
Replies: 43
Views: 4096

I got a copy of our 457 DCP plan from my HR department. It is: 457 Deferred Compensation Plan Group Variable Annuity Contract Fees: No front end charge 1.25% annual M&E Charge No withdrawal charge after 10 years Variable Investment Options: Name / Expense Ratio Bond Funds: Janus Aspen Series Flex Bond / 0.62 Oppenheimer Intn't Bond Fund / 1.34 Fidelity VIP High Income / 0.68 Balanced Funds: AmCent Strategic Alloc Aggres / 1.20 AmCent Strategic Alloc Conser / 1.00 AmCent Strategic Alloc Mod / 1.07 Fidelity VIP Asset Manager / 0.63 OneAmerica Asset Director / 0.59 Russell LifePoints EqGro Stra / 1.16 Large Cap Stocks: AmCent Equity Income / 0.97 OneAmerica Value / 0.58 T Rowe Price Equity-Income / 0.85 Neuberger/Berman Partners / 1.15 Pio...
by envinv
Tue Jun 28, 2011 1:03 pm
Forum: Personal Investments
Topic: Portfolio Help, wondering about my risk
Replies: 43
Views: 4096

Thanks very much for your input once again, retiredjg. That wiki was the first thing I went looking for when I found out about this plan being available to me. Deciding between the perfectly balanced merriman portfolio and limited options in tax deferred investments will be an easy choice. Sorry merriman :wink:. Now I need to place a call to my 457-b plan administrator to get all of my options. Hopefully they aren't too awful.