Search found 1613 matches

by BigJohn
Tue Dec 04, 2018 9:21 am
Forum: Investing - Help with Personal Investments
Topic: Multiple Roths With One Brokerage
Replies: 16
Views: 1210

Re: Multiple Roths With One Brokerage

be careful about mixing apples and oranges..........easy to do w/ the Kitces article since there are so many words........ There are 2 5 yr rules............one for conversions.........that one expires w/ age 59.5. However at that point the age of the first Roth opened takes over. In your case, you...
by BigJohn
Tue Dec 04, 2018 12:08 am
Forum: Investing - Theory, News & General
Topic: Larry Swedroe: Conflicts Of Interest In Banks
Replies: 4
Views: 894

Re: Larry Swedroe: Conflicts Of Interest In Banks

marcopolo wrote:
Mon Dec 03, 2018 11:16 pm
Or maybe, they are trying to capture the "companies who are clients on the lending side of the business" factor, and it just has not paid off yet.
The study only looked over a 10 years period, maybe we just need to be more patient for this factor to pay off.
:sharebeer
:D :D :D
by BigJohn
Mon Dec 03, 2018 5:42 pm
Forum: Investing - Help with Personal Investments
Topic: Multiple Roths With One Brokerage
Replies: 16
Views: 1210

Re: Multiple Roths With One Brokerage

There are different 5 year rules for contributions and conversions. Here’s a link to a post in a forum discussion that might help https://www.bogleheads.org/forum/viewtopic.php?p=2625807#p2625807 And a Kitces article with more details https://www.kitces.com/blog/understanding-the-two-5-year-rules-fo...
by BigJohn
Mon Dec 03, 2018 5:28 pm
Forum: Investing - Help with Personal Investments
Topic: Muni-bond ladder or Muni-bond mutual fund
Replies: 13
Views: 881

Re: Muni-bond ladder or Muni-bond mutual fund

A good article by Alan Roth on this issue. Pay close attention to the hidden fee in the bid/ask spread that you’ll never know about because it’s not trivial. For me it’s a no brained to use muni bond fund.

https://www.cbsnews.com/news/bonds-vs-b ... sy-choice/
by BigJohn
Mon Dec 03, 2018 5:13 pm
Forum: Investing - Help with Personal Investments
Topic: tlh strategy question
Replies: 7
Views: 473

Re: tlh strategy question

Going back to my original question do most people that tlh have paired funds in their taxable account? For example a Vanguard Total Stock Market and large cap or s&p 500 index funds that they tlh between while continuing to contribute to the original fund of their asset allocation. While I have a p...
by BigJohn
Sun Dec 02, 2018 6:44 pm
Forum: Investing - Theory, News & General
Topic: The five-fund portfolio
Replies: 12
Views: 1840

Re: The five-fund portfolio

I agree with adding TIPS in retirement, especially having gone to a higher bond allocation. Not sure why I’d want more in cash than the 2-3 month flywheel of $$ I keep in bank bill paying checking/savings accounts.
by BigJohn
Fri Nov 30, 2018 6:28 pm
Forum: Investing - Help with Personal Investments
Topic: Vanguard Online Account Access for Spouse
Replies: 23
Views: 1372

Re: Vanguard Online Account Access for Spouse

I’ve been in this situation with VG although it was several years ago so some details may have changed. What you want is for your spouse to grant you full agent authorization. This should allow you to see the account on-line when you log into your accounts with your ID/password. It should also grant...
by BigJohn
Fri Nov 30, 2018 6:16 pm
Forum: Investing - Help with Personal Investments
Topic: Basic Bucket Theory
Replies: 40
Views: 3819

Re: Basic Bucket Theory

My two cents to make this a lot more simple... Turn off reinvestment for anything not in an IRA and the dividends/interest become your first tranche of annual income. Since you talk about RMDs replacing bucket one, just send that straight to your checking account and this becomes your second tranche...
by BigJohn
Wed Nov 28, 2018 2:12 pm
Forum: Investing - Help with Personal Investments
Topic: Roth Conversion
Replies: 50
Views: 3185

Re: Roth Conversion

Ignore tax brackets. Focus on AGI, which includes Roth conversions. Project your AGI for age 70 and beyond assuming no Roth conversions. If your age 70 AGI projection is $200,000, then do Roth conversions this year (age 67) to get AGI up to $190k to $195k. This is called levelizing and is what I am...
by BigJohn
Mon Nov 26, 2018 10:18 am
Forum: Investing - Theory, News & General
Topic: Bonds - Throw it all on the table!!!
Replies: 258
Views: 44764

Re: Bonds - Throw it all on the table!!!

I have not read many posts with Bogleheads investing in Vanguard’s tax exempt index bond fund that was created a couple of years ago. No compelling reason to switch from VG Int Term Tax-Exempt and this newer index fund still has a 0.25% purchase fee. The only change I've made since my last post her...
by BigJohn
Sun Nov 25, 2018 7:52 pm
Forum: Investing - Theory, News & General
Topic: Small Value: 15 years of underperforming
Replies: 142
Views: 11197

Re: Small Value: 15 years of underperforming

So the question isn't about SV performance against growth. It is about why the Small value mutual funds have not been able to match the fama-French portfolios? I am pretty sure if you compared the intersection of the stocks each held, it would be pretty clear with the average small value mutual fun...
by BigJohn
Sun Nov 25, 2018 2:13 pm
Forum: Investing - Theory, News & General
Topic: Small Value: 15 years of underperforming
Replies: 142
Views: 11197

Re: Small Value: 15 years of underperforming

So the question isn't about SV performance against growth. It is about why the Small value mutual funds have not been able to match the fama-French portfolios? I am pretty sure if you compared the intersection of the stocks each held, it would be pretty clear with the average small value mutual fun...
by BigJohn
Fri Nov 23, 2018 6:00 pm
Forum: Investing - Theory, News & General
Topic: Small Value: 15 years of underperforming
Replies: 142
Views: 11197

Re: Small Value: 15 years of underperforming

The real question is now that the SV space has gotten more crowded, is there any juice left in the SV orange? If you know the answer to that, please let me know. I agree that this is the most pertinent question to ask going forward. I don’t have an answer to “is there any juice left”. However, I’m ...
by BigJohn
Fri Nov 23, 2018 5:37 pm
Forum: Investing - Help with Personal Investments
Topic: Dealing with Reality
Replies: 20
Views: 3566

Re: Dealing with Reality

While the data favors lump sum investing, I’d suggest you dollar cost average in over 12-18 months for two reasons. First,you’re fairly close to retirement so the consequences of being on the wrong side of the averages are more significant. Second, you seem nervous about going all in which has you s...
by BigJohn
Tue Nov 20, 2018 1:10 am
Forum: Personal Consumer Issues
Topic: Clark Howard - Sign Up For USPS Informed Delivery
Replies: 17
Views: 3062

Re: Clark Howard - Sign Up For USPS Informed Delivery

The questions you were asked were generated by whatever credit bureau the USPS uses. If your credit was frozen like mine is, you would not be able to get past that stage. Instead you would have to print some docs and go to the post office. The same applies to setting up a SSA account online. My cre...
by BigJohn
Mon Nov 19, 2018 7:46 pm
Forum: Personal Consumer Issues
Topic: Clark Howard - Sign Up For USPS Informed Delivery
Replies: 17
Views: 3062

Re: Clark Howard - Sign Up For USPS Informed Delivery

I just signed up for this last week. No credit check was required. After my USPS account was created, signing up for informed deliver was a separate process. To verify my ID I had the option of answering questions on-line which were just like the questions asked to verify ID for my on-line SSA accou...
by BigJohn
Mon Nov 19, 2018 1:00 pm
Forum: Investing - Theory, News & General
Topic: Ed Slott & Roth Conversions
Replies: 45
Views: 3589

Re: Ed Slott & Roth Conversions

The time is a factor if you're converting at a higher tax bracket than would otherwise apply to the distributions. The more time, the more of a difference in the tax rate you can incur. This is similar to my situation. Doing no conversion, I would currently be in one of the lowest two brackets but ...
by BigJohn
Sun Nov 18, 2018 6:47 pm
Forum: Investing - Theory, News & General
Topic: TIPS yield curve oddity
Replies: 22
Views: 1491

Re: TIPS yield curve oddity

Yep, I had the same sense of things that Taylor is talking about. To me, the purpose of TIPS is to cope with inflation, but that's the purpose of *stocks* in a balanced portfolio, not the bonds. Stocks provide growth, and growth is the antidote to inflation. Except when the growth doesn’t keep up w...
by BigJohn
Sun Nov 18, 2018 6:31 pm
Forum: Investing - Theory, News & General
Topic: Ed Slott & Roth Conversions
Replies: 45
Views: 3589

Re: Ed Slott & Roth Conversions

There are many variables to consider as well as life's unknowns which sometimes get in the way of "best laid plans." IMHO the "best" solution can only be seen in hindsight. I my mind it’s critical to understand and accept this statement. At one point I was sure I could put together a spreadsheet th...
by BigJohn
Fri Nov 16, 2018 7:32 pm
Forum: Investing - Theory, News & General
Topic: Question about Roth conversion
Replies: 33
Views: 1937

Re: Question about Roth conversion

Another vote for the fact that the crystal ball needed to say for sure how much conversion is “right” is very fuzzy. This has been discussed a lot on the forum. Here are a couple of links that might be good reading. On the threshold issue, a bit dated so be sure to look at current limits. Some have ...
by BigJohn
Tue Nov 13, 2018 3:15 pm
Forum: Personal Consumer Issues
Topic: Global Entry Turnaround Time ?
Replies: 28
Views: 2129

Re: Global Entry Turnaround Time ?

I applied in early August of this year. It took about 5 weeks to get conditional approval. When I went to schedule the interview, the first available was 2 months out (no walk-ins allowed at nearest airport). Interview took 10 minutes (not really an interview, just ID check, fingerprint and photo). ...
by BigJohn
Tue Nov 13, 2018 2:55 pm
Forum: Investing - Theory, News & General
Topic: Vanguard Year-End distribution estimates
Replies: 34
Views: 1469

Re: Vanguard Preliminary Estimates for Capital Gains

Anyone understand why Institutional Total Sock is distributing some significant gains while apparently Adm/Inv/ETF shares are not. Are the Institutional shares not part of the shareclass grouping that allows them to take advantage of the ETF capabilities?
by BigJohn
Mon Nov 05, 2018 6:58 pm
Forum: Investing - Help with Personal Investments
Topic: Are Bond Funds Really a Good Investment Now?
Replies: 44
Views: 5092

Re: Are Bond Funds Really a Good Investment Now?

Yes I had Vanguard Inflation-Protected Securities (VIPSX/VAIPX) but my Vanguard advisor recommended against them. I wonder why. I had friends that received a VPAS recommendation for a sizable portfolio with no TIPS so I suggetpsted they ask why since they are used in VGs target funds. The answer wa...
by BigJohn
Mon Nov 05, 2018 6:42 pm
Forum: Investing - Help with Personal Investments
Topic: My Edward Jones IRA is out performing my Vanguard 401K
Replies: 76
Views: 10254

Re: My Edward Jones IRA is out performing my Vanguard 401K

He'll likely give you a what sounds like a very reasonable answer that's probably just as inaccurate as the expense ratio average he quoted you. This is why you need to run from EJ. I'd be willing to bet that many and perhaps most EJ 'advisors' don't even know that the information they give out is ...
by BigJohn
Thu Nov 01, 2018 10:42 pm
Forum: Investing - Help with Personal Investments
Topic: Too much risk in this retirement draw down plan?
Replies: 21
Views: 2036

Re: Too much risk in this retirement draw down plan?

Long-term capital gains do not count as income. I'm trying to get my head around this. My understanding is that long-term capital gains do count as an income item for figuring one's AGI, but that the tax on the LTCG is figured beneficially and separately from the rest of the tax on the AGI (after s...
by BigJohn
Thu Nov 01, 2018 4:38 pm
Forum: Investing - Help with Personal Investments
Topic: Too much risk in this retirement draw down plan?
Replies: 21
Views: 2036

Re: Too much risk in this retirement draw down plan?

I think it makes conceptual sense to lump capital gains into a year when you aren't going to do Roth conversions. That will keep your income down and either reduce the margin tax rate on conversions or allow you to convert more. You will lose some time in the market which may or may not have some lo...
by BigJohn
Thu Nov 01, 2018 4:31 pm
Forum: Investing - Help with Personal Investments
Topic: Retirement distribution strategy
Replies: 5
Views: 796

Re: Retirement distribution strategy

The first thing I did was to stop reinvesting and send any dividends/interest from my taxable accounts directly to my checking account. The $$ are taxable either way and I think that's the easiest first step. If you do that for both your taxable accounts and the muni bonds, how much of that $2000 ga...
by BigJohn
Wed Oct 31, 2018 5:18 pm
Forum: Investing - Theory, News & General
Topic: Should we discourage the bond tent?
Replies: 53
Views: 4204

Re: Should we discourage the bond tent?

Delete repeat post
by BigJohn
Wed Oct 31, 2018 5:17 pm
Forum: Investing - Theory, News & General
Topic: Should we discourage the bond tent?
Replies: 53
Views: 4204

Re: Should we discourage the bond tent?

If you construe "Bond Tent" narrowly to mean “Post-Retirement Pre-Determined Rising Equity Glidepath”, then it is indefensible and easily criticized, and the OP is right. If you construe "Bond Tent" broadly to mean any of a whole wide range of strategies that in some circumstances might kinda sorta...
by BigJohn
Tue Oct 30, 2018 10:35 pm
Forum: Investing - Theory, News & General
Topic: Should we discourage the bond tent?
Replies: 53
Views: 4204

Re: Should we discourage the bond tent?

For your chances of dying broke, it’s not obvious to me why a dip in the stock market is inherently more devastating at age 65 than at 75, which seems to be the claim of this supposed “size effect.” Not sure what size effect has to do with it but here's an explanation of why a correction is worse e...
by BigJohn
Tue Oct 30, 2018 6:26 pm
Forum: Investing - Theory, News & General
Topic: Should we discourage the bond tent?
Replies: 53
Views: 4204

Re: Should we discourage the bond tent?

Hard to say... Those last years can be very expensive. Expenses related to health, long-term care, moving to a CCRC. Some of this can hit one spouse first, and then the other spouse later, which magnifies the cost even further. I've seen all this happen in my family, and I would definitely avoid ta...
by BigJohn
Tue Oct 30, 2018 1:25 am
Forum: Investing - Theory, News & General
Topic: Second thoughts about munis (wsj article)
Replies: 47
Views: 3964

Re: Second thoughts about munis (wsj article)

Tarkus, Agree, no free lunches. The higher yield of the fund compared to your ladder must reflect credit quality risk, duration risk, or some of both. The lower the average credit quality, the more bonds needed for adequate diversification. I’m sure the VG fund is well diversified; it’s necessary. ...
by BigJohn
Tue Oct 30, 2018 1:10 am
Forum: Investing - Theory, News & General
Topic: Should we discourage the bond tent?
Replies: 53
Views: 4204

Re: Should we discourage the bond tent?

Full disclosure, I'm using something similar to a bond tent and don't think is driven by emotions or violates any fundamental principles. Kitces comes at the reason for higher bonds early in retirement based on sequence of return risk. I agree but will come at it another way that gets to the same an...
by BigJohn
Wed Oct 10, 2018 10:34 pm
Forum: Investing - Help with Personal Investments
Topic: Anyone tax loss harvesting bond funds?
Replies: 12
Views: 1149

Re: Anyone tax loss harvesting bond funds?

I also harvested a loss in intermediate term tax-exempt bond fund around the first of this month. I went 50/50 long/limited term tax exempt and if things keep going like they have been this week, I'll probably harvest again around the first of next month. I'm using the losses to unwind some very old...
by BigJohn
Sat Oct 06, 2018 8:11 pm
Forum: Investing - Help with Personal Investments
Topic: The Psychological Dimension Of The Transition To Retirement
Replies: 25
Views: 2947

Re: The Psychological Dimension Of The Transition To Retirement

Two different aspects of retirement transition mentioned in comments above, financial and social. On the financial side I've focused on greater simplicity and using a liability matching approach to setting my early retirement stock/bond allocation. There are obviously no guarantees but I feel this g...
by BigJohn
Tue Oct 02, 2018 5:57 pm
Forum: Investing - Theory, News & General
Topic: Is an emergency fund just about market timing?
Replies: 103
Views: 5801

Re: Is an emergency fund just about market timing?

Not even close to the same in my opinion. Market timing = thinking your judgement is good enough to predict the future EF = an insurance policy that helps cover the potential impacts of unpredictable bad events. Like all insurance policies, there is a cost and you hope you never gave to use it but.....
by BigJohn
Tue Oct 02, 2018 5:49 pm
Forum: Investing - Help with Personal Investments
Topic: Will and POA questions
Replies: 5
Views: 696

Re: Will and POA questions

Personally, I am not a proponent of DIY with respect to estate planning. I’m a DIY person at heart but am in full agreement with this statement. The issues can be complex and are largely governed by state laws which do differ. In addition, there is no “do over” for an error/omission here. If I scre...
by BigJohn
Fri Sep 28, 2018 2:53 pm
Forum: Investing - Help with Personal Investments
Topic: VG PAS Recommendations - Surprised/Disappointed?
Replies: 27
Views: 2926

Re: VG PAS Recommendations - Surprised/Disappointed?

You might want to take a look at the holdings in Tax-Managed Balanced and see if the bond portfolio has a wider and flatter range of maturities than Intermediate Tax Exempt. If so, then at least there's a case to be made that they are being internally consistent. ..... This comparison would not see...
by BigJohn
Fri Sep 28, 2018 9:57 am
Forum: Investing - Help with Personal Investments
Topic: VG PAS Recommendations - Surprised/Disappointed?
Replies: 27
Views: 2926

Re: VG PAS Recommendations - Surprised/Disappointed?

My thought is rather than discourage or dissuade your friends, why not give VPAS your endorsement? Do you think they'll get better lower cost financial advice elsewhere? I've already told them that, while I might not do it the exact same way, the VPAS recommendations are prudent and reasonable for ...
by BigJohn
Fri Sep 28, 2018 9:47 am
Forum: Investing - Help with Personal Investments
Topic: VG PAS Recommendations - Surprised/Disappointed?
Replies: 27
Views: 2926

Re: VG PAS Recommendations - Surprised/Disappointed?

.... Just trying to bring some objectivity to the discussion by highlighting conclusions based on facts not in evidence. Well, there are not many topics on this forum that can be "proven" with facts. That's why we have such spirited discussions on things like smart beta or the need for internationa...
by BigJohn
Thu Sep 27, 2018 8:57 pm
Forum: Investing - Help with Personal Investments
Topic: VG PAS Recommendations - Surprised/Disappointed?
Replies: 27
Views: 2926

Re: VG PAS Recommendations - Surprised/Disappointed?

" I have to admit I see no logic here" It appears that if you can't yourself identify the rationale behind a recommendation, you assume it's illogical. There's no reason whatever for such an assumption. Not sure I understand your apparent hostility here. I stated my opinion and ask for others persp...
by BigJohn
Thu Sep 27, 2018 10:31 am
Forum: Investing - Help with Personal Investments
Topic: VG PAS Recommendations - Surprised/Disappointed?
Replies: 27
Views: 2926

Re: VG PAS Recommendations - Surprised/Disappointed?

Update on VG PAS rationale for some of the choices.... For the S&P fund addition, it's there to balance an existing holding that is largely mid-cap stocks. The imbalance is fairly small so not sure it would be worth the added complexity to me but at least the logic seems sound. For the 3 muni bond f...
by BigJohn
Fri Sep 21, 2018 6:07 am
Forum: Investing - Help with Personal Investments
Topic: How real is cyber risk?
Replies: 176
Views: 10211

Re: How real is cyber risk?

SpaethCo and jkrm, thank you for the helpful replies. With several layers of hacking needed and the fact that it would require me to be specifically targeted, I think I'm comfortable with my current setup. If I was a very high net worth individual with a well known public presence like the guy in th...
by BigJohn
Thu Sep 20, 2018 6:00 pm
Forum: Investing - Help with Personal Investments
Topic: How real is cyber risk?
Replies: 176
Views: 10211

Re: How real is cyber risk?

Forgive the potential ignorance of these questions but I’m trying to better understand the vulnerability of 2FA via SMS to my iPhone. Also trying to understand what value, if any, transaction alerts add to my security. My understanding... to be vulnerable they have to have already gotten my PW so le...
by BigJohn
Thu Sep 20, 2018 6:51 am
Forum: Personal Finance (Not Investing)
Topic: General 2018 Tax Question
Replies: 33
Views: 3781

Re: General 2018 Tax Question

I do not see any problem for the tax software companies, Most of the draft forms have been available for quite some time. Yes, many of the line numbers have moved to separate schedules, but retained the same line numbers. As someone who has been in IT for 4+ decades. Even if the line numbers had ch...
by BigJohn
Wed Sep 19, 2018 6:29 pm
Forum: Investing - Help with Personal Investments
Topic: Vanguard Advisor suggesting 7 Bond funds for my 40%
Replies: 44
Views: 5502

Re: Vanguard Advisor suggesting 7 Bond funds for my 40%

The real issue for me is the mix of ST, IT and LT bonds of the same/similar type. If you want an IT duration, buy IT. If you want shorter, mix in ST. If you want longer, mix in LT. What does having a mix of all three accomplish? A friend received a similar recommendation from PAS recently (all new f...
by BigJohn
Wed Sep 19, 2018 6:14 pm
Forum: Personal Finance (Not Investing)
Topic: General 2018 Tax Question
Replies: 33
Views: 3781

Re: General 2018 Tax Question

I think it would be more accurate to say I was being a bit sarcastic. Tax preparers who charge "by the form" will get a benefit. Other than that, it's probably not much different. I agree with both comments. I’m an AARP volunteer tax preparer and as far as I can tell, only one line of the 70+ line ...
by BigJohn
Mon Sep 17, 2018 9:25 am
Forum: Investing - Help with Personal Investments
Topic: Vanguard Advisor suggesting 7 Bond funds for my 40%
Replies: 44
Views: 5502

Re: Vanguard Advisor suggesting 7 Bond funds for my 40%

That is a very unusual suggestion from a Vanguard advisor. I have one bond fund (Vanguard Total Bond Market) which is very diversified with good quality bonds. It has worked well. Unfortunately this doesn’t seem to be unusual from VG PAS these days. This is the third or fourth thread (one started b...
by BigJohn
Wed Sep 12, 2018 5:25 pm
Forum: Investing - Help with Personal Investments
Topic: Municipal Bond Ladder / Tax Efficient Allocation of New Funds
Replies: 23
Views: 1944

Re: Municipal Bond Ladder / Tax Efficient Allocation of New Funds

Another vote for a high quality intermediate term municipal bond fund for three reasons. In addition to the stated fees, there is also a “hidden” cost in the bid/ask spread that can be significant for smaller lots of bonds. The fund will be far more diversified than your ladder. The liquidity of ind...
by BigJohn
Mon Sep 10, 2018 5:06 pm
Forum: Investing - Help with Personal Investments
Topic: One bond fund is enough?
Replies: 16
Views: 1758

Re: One bond fund is enough?

I’m seeing more and more discussions here where VG is recommending a fairly complex bond portfolio. I know they feel very strongly about the importance of international bonds so I think their most simple would be Total Bond and Total International Bond. They seem to be recommending the other two to ...