Search found 772 matches

by deikel
Thu Sep 12, 2019 1:10 pm
Forum: Personal Finance (Not Investing)
Topic: Beach City / Town in Florida
Replies: 56
Views: 5756

Re: Beach City / Town in Florida

We are considering spending about one million on a house. Will that get us close to the beach? Its not what you were asking, but why not rather rent a place for a while to get a feeling for both (or more) places that are the runner ups ? a million would easily give you 40k rental money plus none of...
by deikel
Thu Sep 12, 2019 12:52 pm
Forum: Personal Finance (Not Investing)
Topic: ReFI Advice
Replies: 12
Views: 691

Re: ReFI Advice

OK. My lender said that I can help him if I go to bankrate.com and get a loan that notes 0 points for 3-2.875% then he will negotiate it down 2K. ::sigh:: Or if I make a "big stink" then he could get the bank to play ball with the points. Should I even bother? I'm at the point where I'm wondering i...
by deikel
Thu Sep 12, 2019 12:19 pm
Forum: Personal Finance (Not Investing)
Topic: Am I just playing mind games with myself?
Replies: 23
Views: 3076

Re: Am I just playing mind games with myself?

If you do put the allocated renovation money into the AA you would take on more risk and shift to more stocks....question, if the market drops in a recession, would you consider not doing the renovation ? If yes, then the money can be considered inside your AA If no, then you should keep it separate...
by deikel
Thu Sep 12, 2019 11:53 am
Forum: Personal Finance (Not Investing)
Topic: Overshooting Your Number and Discounting Your Starting Balance
Replies: 13
Views: 1281

Re: Overshooting Your Number and Discounting Your Starting Balance

I rather prefer to overestimate my needed/wanted spending in retirement and come up with a classic SWR and number to go for it. But of course its just percentage math, so it does not matter where you put the safety in and since you have so many variables, I think most people inadvertently add multip...
by deikel
Thu Sep 12, 2019 11:45 am
Forum: Personal Finance (Not Investing)
Topic: Using automatic rebalance feature in Fidelity 401K: Optimal Frequency
Replies: 11
Views: 693

Re: Using automatic rebalance feature in Fidelity 401K: Optimal Frequency

Unfortunately I dont have the source handy, othersie I will post it and edit I read an article that tried this and back tested it. There was a small improvement between yearly and quarterly and no further improvement between quarterly and every month - I don't recall they did weekly and I oddly dont...
by deikel
Thu Sep 12, 2019 11:36 am
Forum: Personal Finance (Not Investing)
Topic: Refinance Mega Thread
Replies: 41
Views: 3934

Re: Refinance Mega Thread

I searched multiple online sites and the offers seemed oddly high, I talked to Ally and the rates were downright silly ( around 4%), then I went to my local CFCU and got a great offer, refinancing from a 30 yr fixed at 4% (4.2 APR) to a 15 yr fixed 2.85 % no points and closing costs of about 1700 (T...
by deikel
Thu Sep 12, 2019 11:28 am
Forum: Personal Finance (Not Investing)
Topic: Help Me Understand 401k Match
Replies: 16
Views: 1373

Re: Help Me Understand 401k Match

The easiest is to at least contribute 4 % with every pay check - then you get 1% in addition from your employer Depending on your salary, your 4 % will come out to be less then the contribution limit of 19k. So if you choose more to reach 19k, you still only get 1 %, but that 1% is above and beyond ...
by deikel
Wed Sep 11, 2019 3:47 pm
Forum: Personal Investments
Topic: 2 Misleading Fidelity Target Date Funds
Replies: 55
Views: 3618

Re: 2 Misleading Fidelity Target Date Funds

..I don't think that's done in a particularly transparent fashion, nor does it live up to the Boglehead hype of Vanguard looking out the most for its customers IMO Considering they’ve always used investor shares in TD finds, I don’t see a lack of transparency or anything deceptive. Vanguard’s not p...
by deikel
Wed Sep 11, 2019 3:36 pm
Forum: Personal Investments
Topic: 2 Misleading Fidelity Target Date Funds
Replies: 55
Views: 3618

Re: 2 Misleading Fidelity Target Date Funds

Just because it has a date in its name does not make it low fee....neither are the Vanguards ones by the way -they are lower, but they charge a fee for using the underlying index funds...for really no reason/service at all. I believe that Vanguard only charges the fees on the underlying funds, and ...
by deikel
Wed Sep 11, 2019 3:33 pm
Forum: Personal Investments
Topic: 2 Misleading Fidelity Target Date Funds
Replies: 55
Views: 3618

Re: 2 Misleading Fidelity Target Date Funds

Just because it has a date in its name does not make it low fee....neither are the Vanguards ones by the way -they are lower, but they charge a fee for using the underlying index funds...for really no reason/service at all. I believe that Vanguard only charges the fees on the underlying funds, and ...
by deikel
Wed Sep 11, 2019 3:25 pm
Forum: Personal Investments
Topic: 2 Misleading Fidelity Target Date Funds
Replies: 55
Views: 3618

Re: 2 Misleading Fidelity Target Date Funds

Just because it has a date in its name does not make it low fee....neither are the Vanguards ones by the way -they are lower, but they charge a fee for using the underlying index funds...for really no reason/service at all. I believe that Vanguard only charges the fees on the underlying funds, and ...
by deikel
Wed Sep 11, 2019 3:21 pm
Forum: Personal Investments
Topic: 2 Misleading Fidelity Target Date Funds
Replies: 55
Views: 3618

Re: 2 Misleading Fidelity Target Date Funds

Just because it has a date in its name does not make it low fee....neither are the Vanguards ones by the way -they are lower, but they charge a fee for using the underlying index funds...for really no reason/service at all. It’s not for no reason, it’s for automatically rebalancing for you. That’s ...
by deikel
Wed Sep 11, 2019 3:08 pm
Forum: Personal Investments
Topic: "Tax-Efficient Allocation" Fallacy?
Replies: 14
Views: 1493

Re: "Tax-Efficient Allocation" Fallacy?

grabiner wrote:
Tue Sep 10, 2019 8:50 pm
If bond yields rise, you can sell your munis for a capital loss and switch to stocks in taxable.
Uhh, I like this one, never thought about this....
by deikel
Wed Sep 11, 2019 2:57 pm
Forum: Personal Investments
Topic: 2 Misleading Fidelity Target Date Funds
Replies: 55
Views: 3618

Re: 2 Misleading Fidelity Target Date Funds

I’ve seen the Frontline piece, but remain unclear about how it applies to these two families of Fidelity funds. Perhaps any company’s offering an actively-managed fund shocks your conscience, but if so that seems a general complaint you have about the industry and has nothing to do with deceptive b...
by deikel
Wed Sep 11, 2019 2:52 pm
Forum: Personal Investments
Topic: 2 Misleading Fidelity Target Date Funds
Replies: 55
Views: 3618

Re: 2 Misleading Fidelity Target Date Funds

The biggest issue for 95%+ people isn't the difference between a 0.75 ER (Fidelity Freedom Active 2045) vs 0.12 ER (Fidelity Freedom Index 2045), it's getting people to contribute a decent amount, consistently. My mom works for a large hospital and recently an email was sent out encouraging people ...
by deikel
Wed Sep 11, 2019 2:50 pm
Forum: Personal Investments
Topic: 2 Misleading Fidelity Target Date Funds
Replies: 55
Views: 3618

Re: 2 Misleading Fidelity Target Date Funds

If one wants to find active funds at Vanguard, is it easy? Yes, very easy. Yes. I find it easy too. Same efforts for me to find active funds at Vanguard as compare to finding index funds at Fidelity. agreed, but the more alarming part is that this forum steers people to Vanguard claiming some advan...
by deikel
Wed Sep 11, 2019 2:36 pm
Forum: Personal Investments
Topic: Hold Physical Cash if Rates Go Negative?
Replies: 39
Views: 4724

Re: Hold Physical Cash if Rates Go Negative?

Not long ago I felt I was out of step for continuing to hold my AA of bonds in a vanguard GNMA fund with intermediate duration because rates had to normalize — rise and short duration was important. Now I feel out of step because rates are going to negative and long bonds are the place to be. No bo...
by deikel
Wed Sep 11, 2019 2:33 pm
Forum: Personal Investments
Topic: Hold Physical Cash if Rates Go Negative?
Replies: 39
Views: 4724

Re: Hold Physical Cash if Rates Go Negative?

Trying to wrap my head around the implications of negative interest rates. If banks/bonds charged interest (ie, a negative rate) for holding assets, wouldn’t this likely cause people to start to hoard physical cash as an asset class preferential to bonds? And if so, what sort of plans have people t...
by deikel
Wed Sep 11, 2019 1:39 pm
Forum: Personal Investments
Topic: How Many Bonds Funds? (Currently Have 4)
Replies: 8
Views: 870

Re: How Many Bonds Funds? (Currently Have 4)

How much money in absolute dollars are we talking about here ? Just to gauge if it makes any sense trying to optimize this at all The 1-5 yr Us core bonds I could understand as an attempt to shift the bond portfolio to short term bonds. After all and not too long ago the ideas was that bond rates co...
by deikel
Wed Sep 11, 2019 12:58 pm
Forum: Personal Investments
Topic: Portfolio Review- Please give me your feedback
Replies: 5
Views: 799

Re: Portfolio Review- Please give me your feedback

• DCP Equity Fund Exp Ratio 0.11 • Vanguard Institutional Index Fund Exp Ratio 0.12 • DCP Small Cap Equity Fund Exp Ratio 0.11 New Jersey State Pension ( Contributed 145K) Final Salary 110K at 65% = $71,500 a year pension. I can begin collecting in 3 years. Or I can continue to work with my current...
by deikel
Wed Sep 11, 2019 12:35 pm
Forum: Personal Investments
Topic: Surrender Variable Life Insurance? (En force illustrations attached)
Replies: 5
Views: 409

Re: Surrender Variable Life Insurance? (En force illustrations attached)

Listed below are all the arguments I can make in favor of keeping the policy: { } That was funny... I like some of the wordsmithing they do: what exactly is 'assuming guaranteed charges', either they are guaranteed or you assume them, no ? 'weighted average fund fees' is also funny, how to weight a...
by deikel
Tue Sep 10, 2019 9:54 am
Forum: Personal Finance (Not Investing)
Topic: Roth or Traditional based on tax bracket
Replies: 49
Views: 2294

Re: Roth or Traditional based on tax bracket

The example in the wiki assumes an additional funding of the IRA, which would allow an additional take out during retirement. The additional take out not being bottom dollars (obviously). I would argue that is a) not the reality of most people/retirees It is the reality for every IRA contribution e...
by deikel
Tue Sep 10, 2019 8:15 am
Forum: Personal Finance (Not Investing)
Topic: Roth or Traditional based on tax bracket
Replies: 49
Views: 2294

Re: Roth or Traditional based on tax bracket

...and taking them out in retirement is always bottom dollar... Although as others have said, traditional is likely correct for the OP, it is not for the quoted reason. That reasoning is the first of two common misconceptions about this issue. Thanks for the link, but that wiki entry should be chan...
by deikel
Mon Sep 09, 2019 3:49 pm
Forum: Investing - Theory, News & General
Topic: Wade Pfau: Does The 4% Rule Work In Today’s Markets?
Replies: 102
Views: 7176

Re: Wade Pfau: Does The 4% Rule Work In Today’s Markets?

I think anyone planning an imminent retirement must somehow account for the current reality of high equity valuations combined with low bond yields. The aversion to doing this is incredibly strong. Nobody wants to be told 3% is the new 4%. It will be fought at all costs, with or without logic, and ...
by deikel
Mon Sep 09, 2019 3:46 pm
Forum: Personal Finance (Not Investing)
Topic: Opinion on Will / Estate issue?
Replies: 29
Views: 2166

Re: Opinion on Will / Estate issue?

who is the executor and what is his/her relationship to the brother if any ? Make sure you get to the house to get the personal property before the brother had a chance to set foot into it Lawyer opinion would cost little and (if it makes sense) a testy letter written by a lawyer also costs little (...
by deikel
Mon Sep 09, 2019 3:33 pm
Forum: Personal Finance (Not Investing)
Topic: Roth or Traditional based on tax bracket
Replies: 49
Views: 2294

Re: Roth or Traditional based on tax bracket

if I understand correctly then you do RothIRA but normal 401k ? In which case you you loose 11k times your 24% taxes, makes 2640 today dollars....if you truly split 50/50 and use a roth 401k, its worse and you forego 5760 today tax dollars IRA/401k money is always top dollars and taking them out in ...
by deikel
Mon Sep 09, 2019 2:54 pm
Forum: Investing - Theory, News & General
Topic: Wade Pfau: Does The 4% Rule Work In Today’s Markets?
Replies: 102
Views: 7176

Re: Wade Pfau: Does The 4% Rule Work In Today’s Markets?

I think anyone planning an imminent retirement must somehow account for the current reality of high equity valuations combined with low bond yields. The aversion to doing this is incredibly strong. Nobody wants to be told 3% is the new 4%. It will be fought at all costs, with or without logic, and ...
by deikel
Mon Sep 09, 2019 1:08 pm
Forum: Personal Investments
Topic: DINK Couple in late 30's Portfolio Advice
Replies: 7
Views: 1861

Re: DINK Couple in late 30's Portfolio Advice

- you could improve on the credit cards, 2% cash back is the norm right now (eg citi double cash) - do the IRA to roth conversion each year in addition to your current contributions, that would give you 11k extra a year - pick and choose the funds with the lowest expense ratio, you will automaticall...
by deikel
Mon Sep 09, 2019 1:00 pm
Forum: Personal Investments
Topic: Too late for a Roth?
Replies: 20
Views: 2348

Re: Too late for a Roth?

Its simply a question of your current tax status You say you are single/head of household and have one dependent AND live in California, so the chances you are in a high tax bracket are high If so, IRA and catch up contributions for the TSP is the way to go for the tax savings, if you are in a low t...
by deikel
Mon Sep 09, 2019 12:52 pm
Forum: Personal Investments
Topic: Using Roth IRA for 529..is it a good idea
Replies: 10
Views: 506

Re: Using Roth IRA for 529..is it a good idea

If it is an option, refinance your house (assuming there is one) and take money out for the college costs - why, much, much lower APR then education loans, in fact a HELOC would be cheaper... And yes, taking the principle out of a roth IRA would be a real option given current education loan rates Bu...
by deikel
Mon Sep 09, 2019 12:46 pm
Forum: Personal Investments
Topic: How to beat 2% safely?
Replies: 49
Views: 5827

Re: How to beat 2% safely?

There is only savings account (around 2 %), CD ladder (around 2%), MM (currently less than 2), bonds with some risk (around 2 %) and the mortgage (3.5% with the risk of bound capital and illiquidity)

None of the above are much work at all...
by deikel
Mon Sep 09, 2019 12:41 pm
Forum: Personal Investments
Topic: How to beat 2% safely?
Replies: 49
Views: 5827

Re: How to beat 2% safely?

My rate is 3.5 but I am nervous about tying up that much in my current home. What if there is a rescession? Pay off your mortgage!! The value of your house has zero to do with your bond obligation i.e. the mortgage. Meaning if you have a 500k house with 400k mortgage and the cost of the house goes ...
by deikel
Mon Sep 09, 2019 12:38 pm
Forum: Personal Investments
Topic: How to beat 2% safely?
Replies: 49
Views: 5827

Re: How to beat 2% safely?

If you go the mortgage pay down route, first take out a zero cost HELOC. You really don't care what the interest rate is because you don't plan to ever use it. It's free insurance. If you're too scared to pay down the mortgage, put $50k into a Redneck Bank Megamoney account. You have no hoops to ju...
by deikel
Fri Sep 06, 2019 3:25 pm
Forum: Investing - Theory, News & General
Topic: Where to put excess College savings once 529 Goals are met.
Replies: 17
Views: 1385

Re: Where to put excess College savings once 529 Goals are met.

Why not overfund the 529 and carry it down to the next generation (if you have the money to begin with) - even if that is an unusually long plan I know its not what you were asking, but you basically trade the 10% penalty for unqualified withdrawals against a certain paid-for education for your kids...
by deikel
Fri Sep 06, 2019 3:17 pm
Forum: Investing - Theory, News & General
Topic: Vanguard Strategic Model Portfolios - Why???
Replies: 14
Views: 1808

Re: Vanguard Strategic Model Portfolios - Why???

so that they can funnel money into both of their ETF funds and pay their respective managers ?
by deikel
Fri Sep 06, 2019 2:49 pm
Forum: Investing - Theory, News & General
Topic: Debunking the Silly “Passive is a Bubble” Myth
Replies: 7
Views: 1522

Re: Debunking the Silly “Passive is a Bubble” Myth

I always thought the bubble concern did not come from a bubble forming during good years but from the lever that is basically applied by all these investors that 'just' pick the S+P500 index fund ....in a downturn. Issues will not stay located in one industry, they will spread as a self fulfilling p...
by deikel
Fri Sep 06, 2019 9:44 am
Forum: Personal Investments
Topic: Advice for diversification for stock allocation
Replies: 8
Views: 530

Re: Advice for diversification for stock allocation

If you just start out, invest in a general stock index fund and don't worry about slicing and dicing it too much. It really only becomes interesting when you hit say 100k or so since it is all about your savings rate in the first many years, until the gains slowly match your contributions and eventu...
by deikel
Fri Sep 06, 2019 9:28 am
Forum: Personal Investments
Topic: Promotion - please help me make sure i'm reoptimizing for taxes
Replies: 12
Views: 1092

Re: Promotion - please help me make sure i'm reoptimizing for taxes

I think your plan is fine but just in general, you seem to wag the dog with the tax tail. I am not sure how much you contribute to the HSA, but its already high for your age IMO, so make sure you either have a condition that will require that money or do not over contribute for the future (if that ...
by deikel
Fri Sep 06, 2019 8:37 am
Forum: Personal Investments
Topic: Promotion - please help me make sure i'm reoptimizing for taxes
Replies: 12
Views: 1092

Re: Promotion - please help me make sure i'm reoptimizing for taxes

I think your plan is fine but just in general, you seem to wag the dog with the tax tail. I am not sure how much you contribute to the HSA, but its already high for your age IMO, so make sure you either have a condition that will require that money or do not over contribute for the future (if that i...
by deikel
Thu Sep 05, 2019 4:08 pm
Forum: Personal Investments
Topic: Need a change in tactics (maybe)
Replies: 23
Views: 2411

Re: Need a change in tactics (maybe)

not exactly what you were asking, but you might want to consider refinancing your mortgage, its at 3.75 right now and going rate for 15 yr is now 2.85, you might save a ton longer term and up your retirement by a couple of years (since you said you plan to have the house paid off at retirement) - ju...
by deikel
Thu Sep 05, 2019 3:23 pm
Forum: Personal Investments
Topic: Learnings/Regrets from last two recessions
Replies: 61
Views: 7487

Re: Learnings/Regrets from last two recessions

Dot Com bubble- I got lucky and had sold all tech and telecom stock before 2000 since I needed the money for college and further education - dumb luck getting out in time, certainly no feeling of it coming, some feeling about tech stock being a good idea in the 90s Related, I asked such a question b...
by deikel
Thu Sep 05, 2019 8:57 am
Forum: Personal Investments
Topic: Would you invest in Vanguard total bond market now for college money?
Replies: 9
Views: 1216

Re: Would you invest in Vanguard total bond market now for college money?

You have won the game (to borrow a phrase form the retirement folks) - so why take any more risk with the college savings ? I assume you can also bankroll some costs if need be, but if you could not do that, why would you risk the education for your kids (which will be much more valuable then the ac...
by deikel
Thu Sep 05, 2019 8:46 am
Forum: Personal Investments
Topic: Cash vs. Bond Fund
Replies: 12
Views: 1156

Re: Cash vs. Bond Fund

DBR: I was thinking that if cash earns 2% and a bond fund could earn between -2% and +10% maybe I would invest in the bond fund. But if the bond fund could earn betwen -10% and +2% then I would stay in cash. Just trying to get a handle on how much risk/reward there could be. Its a good question rig...
by deikel
Wed Sep 04, 2019 2:37 pm
Forum: Personal Investments
Topic: Looking for stream of dividends
Replies: 61
Views: 4854

Re: Looking for stream of dividends

The more important question is how much money do you need from this 500k per year ? If you go all stock in a S+P500 fund, you could expect 2% dividends to be payed out If you go all bond fund, you can also expect to get about 2% payed out If you move it to a savings account, you can currently get ar...
by deikel
Wed Sep 04, 2019 2:28 pm
Forum: Personal Investments
Topic: Portfolio Critique
Replies: 4
Views: 410

Re: Portfolio Critique

For your 403b - make sure you do contribute at least 6% of your salary, otherwise you will leave money on the table. Dave Ramsey or no, this is money you should absolutely do - I am not sure if I read your post correctly, but it looks like you don't do that right now - that is not smart, this is 100...
by deikel
Wed Sep 04, 2019 2:18 pm
Forum: Personal Investments
Topic: $100k rebalancing issue
Replies: 3
Views: 696

Re: $100k rebalancing issue

Brianmcg321 wrote:
Wed Sep 04, 2019 4:47 am
No. If you'll be spending it soon, I would treat it as cash, and not consider it part of your long term portfolio.

If you end up not needing it, then add it to your portfolio.
+1
by deikel
Wed Sep 04, 2019 2:17 pm
Forum: Personal Investments
Topic: Tax-advantaged options
Replies: 5
Views: 595

Re: Tax-advantaged options

Not trying to be negative or anything, but if you can only stash away 8k in a taxable so far, you might only be able to stash away 10k pre tax . Its not that 2k are not some money worth having, but are there other options ? spouse maybe and IRA, 401k options on that side ? Maybe rather invest in IRA...
by deikel
Wed Sep 04, 2019 2:11 pm
Forum: Personal Investments
Topic: No Penalty CDs for Living Trust
Replies: 3
Views: 376

Re: No Penalty CDs for Living Trust

Have you checked with a local credit union ? I know they are brick and mortar, but they sometimes have very competitive rates, my local cu certainly has....also, are you legally limited to CDs ? Or can you add bonds ? Add stock funds to a limited amount ? Possible Real Estate investment ? seems wast...
by deikel
Wed Sep 04, 2019 2:07 pm
Forum: Personal Investments
Topic: Is this a real strategy?
Replies: 17
Views: 1799

Re: Is this a real strategy?

Its a combination of truths and BS and that's why its difficult to figure out IMO. The strategy to invest in dividend yielding stocks is not wrong or bad per se. In fact, usually utilities are used for this strategy and Utilities are currently doing very well - both for their stock prices and their ...
by deikel
Mon Sep 02, 2019 9:38 am
Forum: Personal Investments
Topic: Portfolio Review, if you please
Replies: 5
Views: 476

Re: Portfolio Review, if you please

Why not do the small cap in your 401k ? I assume you do the 401k at a minimum for the match, but I would also fill it up for the tax benefit (I was reading your post that you do not fill the 401k). At your 18% tax rate (assuming 22% tax bracket) you are saving top tax dollars if you fill the 401k, t...