Search found 2469 matches

by Leif
Tue Oct 02, 2018 11:30 am
Forum: Personal Finance (Not Investing)
Topic: Question About Tax Optimal Decumulation/Spending
Replies: 6
Views: 744

Re: Question About Tax Optimal Decumulation/Spending

Typical drawdown order is first taxable account, then tax deferred, then tax free (Roth). That advice may a bit dated for someone with larger qualified accounts and therefore may not be the best choice. Following that method may just mean much larger tax bills later in life due to RMDs. In addition...
by Leif
Mon Oct 01, 2018 7:09 pm
Forum: Personal Finance (Not Investing)
Topic: Question About Tax Optimal Decumulation/Spending
Replies: 6
Views: 744

Re: Question About Tax Optimal Decumulation/Spending

Typical drawdown order is first taxable account, then tax deferred, then tax free (Roth). This allows your tax favored investments to grow. However, the order can change. If withdrawing from tax deferred puts you into a higher tax bracket you may want to consider taking some money from your Roth (if...
by Leif
Mon Oct 01, 2018 2:24 pm
Forum: Investing - Help with Personal Investments
Topic: Vanguard Municipal Money Market VMSXX 1.39%
Replies: 245
Views: 32505

Re: Vanguard Municipal Money Market VMSXX 1.39%

I also show the Vanguard Treasury MM fund ahead. Slightly behind it, by 1 bp of TEY, is the Vanguard Federal MM. Prime MM is in the dust.
by Leif
Fri Sep 28, 2018 10:15 pm
Forum: Investing - Help with Personal Investments
Topic: 99% invested in stocks, bond recommendations please?
Replies: 19
Views: 2516

Re: 99% invested in stocks, bond recommendations please?

Your bonds are to help stabilize your portfolio. You should also project how soon you will need those bonds. If purely for retirement you can place that position in intermediate term bonds, such as the Vanguard or Fidelity Total Bond fund. They are low expense. If interest rates keep rising in the n...
by Leif
Mon Sep 24, 2018 10:40 pm
Forum: Investing - Theory, News & General
Topic: US TSM returns since 2009
Replies: 19
Views: 1957

Re: US TSM returns since 2009

willthrill81 wrote:
Mon Sep 24, 2018 10:32 pm
Where is that written?
The Book of Bogle.
by Leif
Mon Sep 24, 2018 5:13 pm
Forum: Personal Consumer Issues
Topic: What is your single most expensive mistake?
Replies: 293
Views: 25186

Re: What is your single most expensive mistake?

OK, most posts here are about *investment* mistakes, though it's not my original intention starting this thread... Well, I'd like to share one of my investment mistakes. I lump-summed $5500 to my Roth IRA in Jan this year. Everyone knows what happened to stock markets in Feb. If I kept my old way o...
by Leif
Sun Sep 23, 2018 12:39 am
Forum: Investing - Help with Personal Investments
Topic: Which do I pick? Roth 401(k) or Traditional 401(k)?
Replies: 36
Views: 2630

Re: Which do I pick? Roth 401(k) or Traditional 401(k)?

I just want to point out that you are giving advice from the vantage point of survivor bias - as in, "Oh no, I'm far too rich." Many people will not have the same problem and be fretting about taxes & estate as you are. The far larger problem is simply having enough to live on. There is plenty of r...
by Leif
Sat Sep 22, 2018 9:28 pm
Forum: Investing - Help with Personal Investments
Topic: Roth vs Traditional IRA
Replies: 11
Views: 906

Re: Roth vs Traditional IRA

I am thinking this because I may not get a high-paying job when I retire, and I may work less or may not work at all. So, in my assumption, my income will be likely lower than what I have now. You may have income in retirement that you don't have now. A pension perhaps, social security, interest an...
by Leif
Fri Sep 21, 2018 7:56 pm
Forum: Investing - Help with Personal Investments
Topic: Still haven't made sense of this 50-50 AA situation
Replies: 9
Views: 1372

Re: Still haven't made sense of this 50-50 AA situation

I'm using the same 50/50 AA as you. I'm doing Roth conversions to move equities into Roth. I don't expect to get to the "pure" stock/bond division as you. However, if I did I would be less concerned about the precise AA. My bonds have both short and intermediate term. But, looking at VBMFX (Vanguard...
by Leif
Fri Sep 21, 2018 5:42 pm
Forum: Investing - Theory, News & General
Topic: For those who use a 2 year cash(like) buffer, how do you know when to use it?
Replies: 67
Views: 5561

Re: For those who use a 2 year cash(like) buffer, how do you know when to use it?

I've been retired for about 1 year. I have a cash buffer of approximately 1-2 years of expenses not covered by my income. Much of that is to cover taxes on Roth conversions. Taxes (Roth conversion, property, other income) is by far my biggest expense. Next on my expense list is medical. I have a 5 y...
by Leif
Thu Sep 20, 2018 3:21 pm
Forum: Personal Consumer Issues
Topic: What is your single most expensive mistake?
Replies: 293
Views: 25186

Re: What is your single most expensive mistake?

Commodity futures. It was insurance that was not needed. TIPS would have been much less expensive insurance against inflation.
by Leif
Wed Sep 19, 2018 12:41 pm
Forum: Personal Finance (Not Investing)
Topic: What's the best early retirement strategy for us?
Replies: 39
Views: 3183

Re: What's the best early retirement strategy for us?

I got an early start in planning for retirement. I was 24 when I went to a retirement class offered by my employer Everyone else in the class had gray hair. So, it is hard to advise you. The only advice I have to offer is save as much as possible and frequently check in on this website.
by Leif
Sat Sep 15, 2018 2:42 pm
Forum: Personal Consumer Issues
Topic: Should I get a new iPhone?
Replies: 43
Views: 3680

Re: Should I get a new iPhone?

WhiteMaxima wrote:
Fri Sep 14, 2018 1:42 pm
Assuming you are seniors, you get two line unlimited data $50 tax included.
I just signed up for that 55+ plan. It cost me $70 for two lines. How can I get it for $50?
by Leif
Sat Sep 15, 2018 2:34 pm
Forum: Personal Consumer Issues
Topic: Should I get a new iPhone?
Replies: 43
Views: 3680

Re: Should I get a new iPhone?

I also have a 6 Plus. I'm waiting for 5G to buy a new phone. My battery is at 84%. I will be replacing my battery for $29 so it will last me a few more years.
by Leif
Sat Sep 15, 2018 11:55 am
Forum: Personal Consumer Issues
Topic: Should I sell my MacBook pro?
Replies: 18
Views: 1622

Re: Should I sell my MacBook pro?

I love my 2014 MBP. I use it everyday. But if you don't use it you probably should sell it.
by Leif
Thu Sep 13, 2018 2:14 pm
Forum: Investing - Theory, News & General
Topic: It's not enough to mumble "Stay the Course"... INT'L Investing has been a disaster!
Replies: 1155
Views: 95470

Re: It's not enough to mumble "Stay the Course"... INT'L Investing has been a disaster!

Not that I would ever do it, but this seems like a good buying situation for commodities. Right, the last 10 years were constant buying opportunities as well. I remember a post several years ago were someone decided to buy more since it was a buying opportunity. Perhaps one day it will be true. I t...
by Leif
Thu Sep 13, 2018 1:17 pm
Forum: Investing - Theory, News & General
Topic: It's not enough to mumble "Stay the Course"... INT'L Investing has been a disaster!
Replies: 1155
Views: 95470

Re: It's not enough to mumble "Stay the Course"... INT'L Investing has been a disaster!

Also, I think Commodities have been the real disater! :shock: Tell me about it! I was a long time holder of commodities at 5% of my portfolio. Larry S. tells me I should have been a holder of LT bonds at the same time. Well, I was not. Fortunately, I was not rebalancing the commodity part. When I s...
by Leif
Tue Sep 11, 2018 1:44 pm
Forum: Investing - Theory, News & General
Topic: Barron's--Vanguard Is Losing Battles on Two Fronts in Fee Wars
Replies: 53
Views: 4730

Re: Barron's--Vanguard Is Losing Battles on Two Fronts in Fee Wars

Vanguard now has commission-free trading on 1,800 ETFs, so its not like nothing good is happening there. As a Vanguard mutual fund owner I'm not sure I like that. Who is paying for all this trading? Are enough people buying Vanguard ETFs that they make up the cost of the free trading for all 1,800 ...
by Leif
Sun Sep 09, 2018 6:47 pm
Forum: Investing - Theory, News & General
Topic: Fidelity Files for Four Fidelity ZERO℠ Funds (0.00% ER)
Replies: 753
Views: 73687

Re: Fidelity Files for two Fidelity ZERO℠ Funds (0.00% ER total stock and total international mutual funds)

passiveTiger wrote:
Mon Aug 20, 2018 4:17 am
VMRXX would be the comparable (but not institutional) Vanguard fund available to individuals with a 0.10% ER and a YTD of 1.15%. $5,000 minimum.
VMRXX has a $5,000,000 minimum. The investor class, VMMXX, has a $3,000 minimum, and an ER of 0.16%
by Leif
Tue Sep 04, 2018 12:51 pm
Forum: Investing - Help with Personal Investments
Topic: Which do I pick? Roth 401(k) or Traditional 401(k)?
Replies: 36
Views: 2630

Re: Which do I pick? Roth 401(k) or Traditional 401(k)?

I agree with the Roth. Given your age and that you are at the beginning of your earnings curve, a Roth makes more sense. Particularly given the relatively low federal income tax rates. When your salary moves up or if tax rates increase, you can revisit that decision. As a person with more in a tIRA...
by Leif
Mon Sep 03, 2018 6:30 pm
Forum: Investing - Help with Personal Investments
Topic: Which do I pick? Roth 401(k) or Traditional 401(k)?
Replies: 36
Views: 2630

Re: Which do I pick? Roth 401(k) or Traditional 401(k)?

I agree with the Roth. Given your age and that you are at the beginning of your earnings curve, a Roth makes more sense. Particularly given the relatively low federal income tax rates. When your salary moves up or if tax rates increase, you can revisit that decision. As a person with more in a tIRA ...
by Leif
Sun Sep 02, 2018 3:06 pm
Forum: Personal Finance (Not Investing)
Topic: Earn 1.5% on your checking account without the usual hoops (at Fidelity)
Replies: 64
Views: 7480

Re: Earn 1.5% on your checking account without the usual hoops (at Fidelity)

UpperNwGuy wrote:
Sun Aug 05, 2018 8:46 am
The third call will be the tie-breaker! :)
Yes, Private Client gets their ATM fees reimbursed. The amount of fee reversed is limited, maybe $50 or $75/year, but I recall it is more than I expected to need.
by Leif
Sat Sep 01, 2018 8:53 pm
Forum: Investing - Help with Personal Investments
Topic: What are your goals when you change your bond funds?
Replies: 36
Views: 2389

Re: What are your goals when you change your bond funds?

I see the yield curve flattening and I'm changing how I handle new investments. Instead of moving funds into the 5 Yr CDs I'm moving new funds into 2/3 year brokerage CDs.
by Leif
Tue Aug 28, 2018 10:20 am
Forum: Investing - Theory, News & General
Topic: Ultimate Buy and Hold - 8 slices vs 4
Replies: 733
Views: 332881

Re: Ultimate Buy and Hold - 8 slices vs 4

Be aware that some people will pick a certain time frame, instead of using the longest possible time frame, to promote their argument. It is known as cherry picking. The charts at the beginning of this post goes back to 1970, not 10 years. 1970 since that is when data for international is more readi...
by Leif
Mon Aug 27, 2018 12:59 am
Forum: Investing - Help with Personal Investments
Topic: Which emerging markets fund should I use?
Replies: 8
Views: 683

Re: Which emerging markets fund should I use?

Not sure if this is for taxable or tax preferred account.

You can check out Fidelity's FPMAX. Its ER is 0.08% with no minimum amount. It has been very tax efficient.
by Leif
Sun Aug 26, 2018 12:37 pm
Forum: Investing - Theory, News & General
Topic: 2000-2018 retirement - sequence of returns
Replies: 153
Views: 13675

Re: 2000-2018 retirement - sequence of returns

Thanks. I think this post needs to get a little more love than it has. This shows that 100% stock is the "safer" bet to me. Remember this is not yearly returns. It is over an 18 year overlapping cycle for each data point. A lot can happen within that 18 years, particularly if you are making withdra...
by Leif
Sat Aug 25, 2018 11:25 pm
Forum: Investing - Help with Personal Investments
Topic: Move some over to Fidelity ZERO ?
Replies: 23
Views: 1849

Re: Move some over to Fidelity ZERO ?

\ Very interesting, Leif, thanks a bunch ! Didn’t know that, so in your opinion you’d recommend keeping the Vanguard total International !? Sorry, am a little tired and not THAT financially fluent, but you see a place for Vanguard total international in a Roth too ? (I.e. , did you mean a benefit t...
by Leif
Sat Aug 25, 2018 10:33 am
Forum: Investing - Help with Personal Investments
Topic: Move some over to Fidelity ZERO ?
Replies: 23
Views: 1849

Re: Move some over to Fidelity ZERO ?

I would not want to lose international small caps exposure in a tax deferred account. Small caps give you the best international diversification since it is not as closely tied to want is happening in the US. Taxable account is another story. I'm thinking about the international zero in the taxable ...
by Leif
Fri Aug 24, 2018 12:53 pm
Forum: Investing - Theory, News & General
Topic: 2000-2018 retirement - sequence of returns
Replies: 153
Views: 13675

Re: 2000-2018 retirement - sequence of returns

For the 50/50 are you taking the spend from bonds, or an equal dollar amount from each class, or a % from each class? Equal from each class. You're correct that if one pulled from the better performing asset, it would change the numbers and probably make the 50/50 portfolio look better. It would ce...
by Leif
Fri Aug 24, 2018 12:48 pm
Forum: Investing - Theory, News & General
Topic: 2000-2018 retirement - sequence of returns
Replies: 153
Views: 13675

Re: 2000-2018 retirement - sequence of returns

For the 50/50 are you taking the spend from bonds, or an equal dollar amount from each class, or a % from each class based on class size?
by Leif
Thu Aug 23, 2018 11:12 am
Forum: Investing - Help with Personal Investments
Topic: What to do with cash in this market?
Replies: 34
Views: 3309

Re: What to do with cash in this market?

I know some suggest to use a Roth as an emergency fund or piggy bank. I think that is rather inefficient. I would rather keep the money I needed for cash flow in a taxable account and reserve the Roth for equities, since they have the highest expected return. Do you have a traditional IRA or 401k (o...
by Leif
Mon Aug 20, 2018 10:40 am
Forum: Investing - Help with Personal Investments
Topic: Retirees: Timing your withdrawals
Replies: 40
Views: 3799

Re: Retirees: Timing your withdrawals

As needed. I try to keep checking in the range of a couple of months of expense. Retired, but not yet on SS.
by Leif
Sat Aug 18, 2018 11:18 am
Forum: Investing - Theory, News & General
Topic: "Don't Obsess About Expense Ratios"
Replies: 240
Views: 21658

Re: "Don't Obsess About Expense Ratios"

I am thinking that your ability to pay off the credit card in full is likely better than the average person. We may not be the targets of the marketing for these funds. Zero expense and no minimum is likely aimed at a different target. I am glad you have been treated well at Fidelity, and I am cons...
by Leif
Sat Aug 18, 2018 11:05 am
Forum: Investing - Theory, News & General
Topic: It's not enough to mumble "Stay the Course"... INT'L Investing has been a disaster!
Replies: 1155
Views: 95470

Re: It's not enough to mumble "Stay the Course"... INT'L Investing has been a disaster!

No place like home? That brings me to the contention that U.S. stocks are both safer and sure to outperform over the long term. I find this bizarre. Remember, these comments are coming from folks who have drunk the Kool-Aid, accepted that markets are efficient and banked their life’s savings on inde...
by Leif
Sat Aug 18, 2018 9:38 am
Forum: Investing - Theory, News & General
Topic: "Don't Obsess About Expense Ratios"
Replies: 240
Views: 21658

Re: "Don't Obsess About Expense Ratios"

Anyone that thinks there wont be sales pitches is kidding themselves. Perhaps your experience is different, but I've not received any sales pitches from Fidelity. I've been with Fidelity for over 30 years. I have no reason to think they will start now. Per Jonathon Clements recent article: Instead,...
by Leif
Tue Aug 14, 2018 10:48 am
Forum: Investing - Theory, News & General
Topic: It's not enough to mumble "Stay the Course"... INT'L Investing has been a disaster!
Replies: 1155
Views: 95470

Re: It's not enough to mumble "Stay the Course"... INT'L Investing has been a disaster!

I felt the same way about commodities. I started out with about 5% of the portfolio. Over the years it dropped about 70%. I finally dumped it. I figured it could reverse or not, but 5% (at that time 2%) will not make much difference in any case. International is different. International is 50% of th...
by Leif
Sat Aug 11, 2018 7:31 pm
Forum: Investing - Theory, News & General
Topic: "Don't Obsess About Expense Ratios"
Replies: 240
Views: 21658

Re: "Don't Obsess About Expense Ratios"

dwickenh wrote:
Sat Aug 11, 2018 11:09 am
Anyone that thinks there wont be sales pitches is kidding themselves.
Perhaps your experience is different, but I've not received any sales pitches from Fidelity. I've been with Fidelity for over 30 years. I have no reason to think they will start now.
by Leif
Fri Aug 10, 2018 11:48 pm
Forum: Investing - Help with Personal Investments
Topic: Multiple tIRA accounts-- any reason to not consolidate?
Replies: 17
Views: 1317

Re: Multiple tIRA accounts-- any reason to not consolidate?

If your tIRA is from a company rollover that may make a difference. Some companies allow you to take funds from a previous company and move them to the new company's 401(k) or equivalent. To do that you need to keep the old company's funds separate from other IRA funds. That is the reason I was give...
by Leif
Fri Aug 10, 2018 8:08 pm
Forum: Investing - Theory, News & General
Topic: "Don't Obsess About Expense Ratios"
Replies: 240
Views: 21658

Re: "Don't Obsess About Expense Ratios"

He's so right. I'm almost afraid that this zero expense ratio thing might be a bait and switch. Can you give us a single example from the last 50 years of a brokerage who has engaged in bait and switch by lowering ERs only to later increase them? Vanguard. But I would not call it bait and switch. M...
by Leif
Fri Aug 10, 2018 11:21 am
Forum: Personal Finance (Not Investing)
Topic: "Open Social Security" calculator: feature requests, bug reports, etc
Replies: 225
Views: 20606

Re: "Open Social Security" calculator: feature requests, bug reports, etc

Given the factors I mentioned in the last post, I wonder how useful this calculator is? It might lead to more confusion than clarity for most people, and might lead to some people taking SS earlier than would be best for them. What it calculates is just one minor part of the info to be considered w...
by Leif
Thu Aug 09, 2018 2:58 pm
Forum: Investing - Help with Personal Investments
Topic: keep cash in after-tax for bridge to Social Security ?
Replies: 33
Views: 3013

Re: keep cash in after-tax for bridge to Social Security ?

I've got a whopping big after-tax CD maturing in October. If I decide to buy equities with it, I'd need to sell some in tax-deferred (to maintain my AA). But I don't have any equities in my TIRA (aka. TIAA-CREF RA), so I'd have to sell some in my Roth. And I'm not sure that makes sense. I agree wit...
by Leif
Wed Aug 08, 2018 10:30 am
Forum: Investing - Theory, News & General
Topic: Where to Hold TIPS?
Replies: 20
Views: 1727

Re: Where to Hold TIPS?

States are free to tax the dividends produced by RICs in any way they see fit. And some states have rather peculiar rules in that regard (see NY, CA, maybe others). Although I don't have a TIPS fund in taxable, this is all news to me. I tried a search, but could not find anything specific, like a t...
by Leif
Tue Aug 07, 2018 7:28 pm
Forum: Investing - Help with Personal Investments
Topic: keep cash in after-tax for bridge to Social Security ?
Replies: 33
Views: 3013

Re: keep cash in after-tax for bridge to Social Security ?

By "moving equities into tax-deferred", you mean if you're forced to sell equity in after-tax, at low prices, for spending needs, and then you rebuy it in tax-deferred so as not to have had a net loss in equity (and to keep your AA on target) ? Yes. The proposal was to keep equities in taxable and ...
by Leif
Tue Aug 07, 2018 12:04 am
Forum: Investing - Theory, News & General
Topic: "Don't Obsess About Expense Ratios"
Replies: 240
Views: 21658

Re: "Don't Obsess About Expense Ratios"

Cost matters.
Jack Bogle wrote: The grim irony of investing, then, is that we investors as a group not only don't get what we pay for, we get precisely what we don't pay for. So if we pay for nothing, we get everything.
by Leif
Mon Aug 06, 2018 1:19 pm
Forum: Investing - Theory, News & General
Topic: Where to Hold TIPS?
Replies: 20
Views: 1727

Re: Where to Hold TIPS?

I hold VTIP (Vanguard Short term TIPS) in my tIRA. I would not hold in my Roth since that is for my higher expected return assets (equities). Since I'm in a high tax state I would consider VTIP for my taxable. However, I prefer to hold equities due to the taxable advantage in qualified dividends, LT...
by Leif
Sun Aug 05, 2018 1:05 pm
Forum: Investing - Help with Personal Investments
Topic: Fidelity charges to close accounts!
Replies: 81
Views: 29108

Re: Fidelity charges to close accounts!

I just got hit with a $50 fee for rolling a Fidelity 401k ($70k or so in there) into a new Fidelity rollover IRA (done online). No mention of it while setting the IRA up, which is annoying. I have a feeling that a quick call will get it resolved, but any other advice on how to do it the quickest? I...
by Leif
Mon Jul 30, 2018 6:32 pm
Forum: Investing - Help with Personal Investments
Topic: Retirees: how much cash?
Replies: 61
Views: 6710

Re: Retirees: how much cash?

73% equities, 26.6% bonds, 0.4% cash. I have always kept a minimal amount in cash. Cash is not bad these days compared to bonds, but I won't be moving any money there. Some have enough income from taxable (dividends & capital gains, rental income, interest, pensions, annuities, SS) to keep the ligh...
by Leif
Sun Jul 29, 2018 3:31 pm
Forum: Investing - Help with Personal Investments
Topic: keep cash in after-tax for bridge to Social Security ?
Replies: 33
Views: 3013

Re: keep cash in after-tax for bridge to Social Security ?

... or game the system by buying something that's similar enough but not "substantially identical". The is very common in TLH. You may sell TSM and buy S&P500 for example. What would bother me is moving more equities into my tax deferred. As I look to RMDs I want the higher expected return assets o...