Search found 810 matches

by Admiral
Mon Oct 23, 2017 7:10 pm
Forum: Investing - Help with Personal Investments
Topic: Bonds at Age 50?
Replies: 15
Views: 1055

Re: Bonds at Age 50?

It depends on when one plans to stop working. The AA of a 50 year old who plans to work to 70 would (likely) not be the same as one who plans to only work until 59. Unless one has a ton of money (or very low expenses), you'll need more equities to support a longer retirement. We are 70/30 (really 75...
by Admiral
Mon Oct 23, 2017 7:04 pm
Forum: Investing - Theory, News & General
Topic: Over 50 catch up-calendar year or birth date?
Replies: 4
Views: 273

Re: Over 50 catch up-calendar year or birth date?

Rexindex wrote:
Mon Oct 23, 2017 6:54 pm
If a birthday is in August of 2018, can someone turning 50 make catch up contributions from January 2018(pre birthday) to max out employer plan for fiscal 2018?
Yes. It is based on the year you turn 50, not the actual 50th birthday. Note that not all plans will match these catch-ups.
by Admiral
Mon Oct 23, 2017 12:12 pm
Forum: Personal Finance (Not Investing)
Topic: Does anyone here with net worths north of $1 mil use financial advisors?
Replies: 149
Views: 11233

Re: Does anyone here with net worths north of $1 mil use financial advisors?

I'm north of 1 million, and I do use an advisor. I'm paying considerably less than 1% though - closer to 0.25%. I'm in index funds (primarily DFA), and because my account is almost completely taxable, muni bonds. For me, the biggest stumbling block to doing it all myself is the bond side. My portfo...
by Admiral
Mon Oct 23, 2017 12:00 pm
Forum: Personal Finance (Not Investing)
Topic: Does anyone here with net worths north of $1 mil use financial advisors?
Replies: 149
Views: 11233

Re: Does anyone here with net worths north of $1 mil use financial advisors?

I'm north of 1 million, and I do use an advisor. I'm paying considerably less than 1% though - closer to 0.25%. I'm in index funds (primarily DFA), and because my account is almost completely taxable, muni bonds. For me, the biggest stumbling block to doing it all myself is the bond side. My portfo...
by Admiral
Mon Oct 23, 2017 11:56 am
Forum: Personal Finance (Not Investing)
Topic: Good idea to max out IRA with income past phase-out limit?
Replies: 13
Views: 629

Re: Good idea to max out IRA with income past phase-out limit?

If you don’t have any IRA outside of your workplace or 401k, you can contribute to non-deductible traditional IRA and then convert immediately to Roth IRA. I did this way many years, but the trick is not to have any IRA outside of your workplace retirement plan. Otherwise,the tax can be messy. Some...
by Admiral
Sat Oct 21, 2017 4:32 pm
Forum: Investing - Theory, News & General
Topic: TIAA Trouble [NY Times: TIAA pushes clients to high fee products]
Replies: 49
Views: 3542

Re: TIAA Trouble [NY Times: TIAA pushes clients to high fee products]

Meta critic said: "...That said, I actually like their life insurance products and hold term life insurance with them. Rates are competitive, and I can't imagine they won't honor the contract if/when it becomes an issue". What do you/other BH's consider 'competitive' life insurance rates ? I too ha...
by Admiral
Fri Oct 20, 2017 2:22 pm
Forum: Personal Finance (Not Investing)
Topic: new 401(k) limits announced
Replies: 73
Views: 9135

Re: new 401(k) limits announced

Why couldn't they just make it $18,600 instead? That would be nice and divisible by 24 (or 12) for payroll contribution. At the current limit, it's an easy $750 bi-monthly ($1500 monthly) to max out. For 2018, it will be $770.83333 bi-monthly ($1541.66667 monthly). Hitting the exact limit just got ...
by Admiral
Thu Oct 19, 2017 2:39 pm
Forum: Investing - Help with Personal Investments
Topic: Small article : Investment priorities change
Replies: 6
Views: 771

Re: Small article : Investment priorities change

Just read a short article in the paper which may actually be from Motley Fool. It was titled "Investment priorities change" and talked about changing priorities for investors > 50. Their recommendations were to focus on Dividend stocks and referenced Vanguard High Dividend Yield ETF. If someone is ...
by Admiral
Fri Oct 13, 2017 11:53 am
Forum: Personal Finance (Not Investing)
Topic: Thoughts on home insurance and land vs structure value
Replies: 20
Views: 1126

Thoughts on home insurance and land vs structure value

My home value has increased quite a bit (market value, anyway) such that I am insured (including replacement value of contents) for about $500k but the market value of the home is probably more like $700-800k. Historic home. I have always felt that the market value reflects the market value of the l...
by Admiral
Wed Oct 11, 2017 11:54 am
Forum: Investing - Help with Personal Investments
Topic: Social Security - general question
Replies: 28
Views: 2479

Re: Social Security - general question

For each increase of $100K of indexed earnings past the 2nd bend point = $35/mo benefit at FRA (less at 62). Hardly really worth it, in my eyes. What is worth it is the income from working and not having to draw down your assets and allowing SS benefit to grow. Interesting, because I was thinking t...
by Admiral
Tue Oct 10, 2017 6:32 am
Forum: Investing - Theory, News & General
Topic: Dividends vs. Capital Gains for Spending Needs?
Replies: 200
Views: 14862

Re: Dividends vs. Capital Gains for Spending Needs?

...All I need is a couple of doubles in the account. If an account doubles every 10 years, 2 doubles would be approx. 20 years. I' am 23 years old now, so 2 doubles would make me approx. 43 years old. The portfolio would need to last age 100 - age 43 = 57 years. Age 43 is the very earliest that I c...
by Admiral
Mon Oct 09, 2017 1:52 pm
Forum: Personal Finance (Not Investing)
Topic: Pay off mortgage or invest?
Replies: 10
Views: 1018

Re: Pay off mortgage or invest?

 If you do not pay it off then you will have more sequence of returns risk. For example in rough numbers if you just kept a $100K mortgage and also put $100K into a separate investing account which you also pay a $500 a month mortgage out of then; a) If you get unlucky and get a modest 10% decline ...
by Admiral
Mon Oct 09, 2017 11:53 am
Forum: Personal Finance (Not Investing)
Topic: Pay off mortgage or invest?
Replies: 10
Views: 1018

Re: Pay off mortgage or invest?

1. Why are you considering a Roth and not a Traditional IRA? 2. How much of your salaries are being put toward tax-advantaged space? 3. Is there a company match and if so, are you getting it? There is absolutely no reason to pay early on a mortgage before all tax-advantaged accounts are fully funded...
by Admiral
Mon Oct 09, 2017 9:51 am
Forum: Investing - Theory, News & General
Topic: Dividends vs. Capital Gains for Spending Needs?
Replies: 200
Views: 14862

Re: Dividends vs. Capital Gains for Spending Needs?

I think there is a big difference between a stock fund that has (hoped for) share appreciation as part of its total return as well as a modest dividend stream (which might be mostly "qualified dividends" vs. a bond or mostly bond fund which has "dividends"(mixture of qualified dividends but mostly ...
by Admiral
Mon Oct 09, 2017 8:45 am
Forum: Investing - Theory, News & General
Topic: Dividends vs. Capital Gains for Spending Needs?
Replies: 200
Views: 14862

Re: Dividends vs. Capital Gains for Spending Needs?

Good Morning Everyone, I' am on my way to work...but I have a special treat for you today. JLCollins first article to his daughter. It's excellent...I hope you enjoy it like I did. I also wanted to thank everyone for all your help. Bogleheads is full of excellent advise... Admiral, Montana is a rur...
by Admiral
Mon Oct 09, 2017 6:20 am
Forum: Investing - Theory, News & General
Topic: Dividends vs. Capital Gains for Spending Needs?
Replies: 200
Views: 14862

Re: Dividends vs. Capital Gains for Spending Needs?

Another problem is long term capital gains on switching funds: Let's say your in a low dividend paying fund during your accumulation years (say TSM). Then at retirement you switch your TSM fund into a dividend paying fund (say HDY). As soon as you make the switch your hit with capital gains tax. On...
by Admiral
Sun Oct 08, 2017 5:39 pm
Forum: Investing - Theory, News & General
Topic: Dividends vs. Capital Gains for Spending Needs?
Replies: 200
Views: 14862

Re: Dividends vs. Capital Gains for Spending Needs?

I'm in the "we love dividends" camp, and have moved into investments that generate some kind of reasonable dividend specifically to replace income in retirement. In fact, I've shifted wife's investments more into dividend paying investments as she's at an age where she can pull from her tax-deferre...
by Admiral
Fri Oct 06, 2017 6:10 am
Forum: Investing - Theory, News & General
Topic: Are stocks going up only because all the alternatives are lousy?
Replies: 45
Views: 4721

Re: Are stocks going up only because all the alternatives are lousy?

Bonds usually refer to non-defaultable government securities, denominated in the currency that the government has control of. No they don't. There's a reason iShares, Vanguard, and everyone else in the world calls these things "bonds". Because they are bonds. AlohaJoe is correct, there are lots of ...
by Admiral
Fri Oct 06, 2017 6:03 am
Forum: Investing - Theory, News & General
Topic: Are stocks going up only because all the alternatives are lousy?
Replies: 45
Views: 4721

Re: Are stocks going up only because all the alternatives are lousy?

The market will pull back...as it always does. And then it will go up again. But consider that even a large (say, 10%) drop in SPX will simply bring it back to where it was in March, 2016. Which would still be double what it was in mid-2009. I'm struggling with those numbers. S&P is now over 2500. ...
by Admiral
Thu Oct 05, 2017 7:33 pm
Forum: Investing - Theory, News & General
Topic: Are stocks going up only because all the alternatives are lousy?
Replies: 45
Views: 4721

Re: Are stocks going up only because all the alternatives are lousy?

The market will pull back...as it always does. And then it will go up again. But consider that even a large (say, 10%) drop in SPX will simply bring it back to where it was in March, 2016. Which would still be double what it was in mid-2009. Personally I do feel that low bond yields are having an ef...
by Admiral
Thu Oct 05, 2017 11:16 am
Forum: Investing - Help with Personal Investments
Topic: Pay off mortgage instead of bond investment
Replies: 28
Views: 2165

Re: Pay off mortgage instead of bond investment

From the OP: Thanks to everyone for the very thoughtful and insightful responses. It's clear that mine is not a cut-and-dry situation, and you have eloquently outlined arguments on both sides. I realize now that I created confusion with some of my statements. Some (probably unnecessary) clarificati...
by Admiral
Thu Oct 05, 2017 8:54 am
Forum: Investing - Help with Personal Investments
Topic: Pay off mortgage instead of bond investment
Replies: 28
Views: 2165

Re: Pay off mortgage instead of bond investment

As usual, your bonds vs mortgage analysis is spot on. My point was that beating his effective rate could be done not at NO risk , but at absolutely minimal risk. If one does not have confidence that one can beat an effective 2% mortgage (with an assumed 1% rate of inflation, though hopefully higher...
by Admiral
Wed Oct 04, 2017 10:14 am
Forum: Personal Finance (Not Investing)
Topic: Comparing cost of two homes
Replies: 3
Views: 396

Re: Comparing cost of two homes

What do you mean by "annual cost" and "two different homes"? Do you mean the carrying costs of two different loan amounts? The annual maintenance costs? I'm not sure there is such a tool for the latter since the costs are unknowable (except for things covered by a condo association which would be pa...
by Admiral
Wed Oct 04, 2017 9:24 am
Forum: Investing - Help with Personal Investments
Topic: Pay off mortgage instead of bond investment
Replies: 28
Views: 2165

Re: Pay off mortgage instead of bond investment

That is not his situation. He's paying about 2% (effective rate). Vanguard Total Bond has a 10-year after tax yield of about 2.8%. So, he could beat it with bonds...if he cares to. This is the wrong comparison, as you are looking at a historical return. The current yield on Total Bond Market Index ...
by Admiral
Wed Oct 04, 2017 9:15 am
Forum: Investing - Help with Personal Investments
Topic: Add to 529 to Keep Funding Taxable?
Replies: 38
Views: 1899

Re: Add to 529 to Keep Funding Retirement?

It sounds like from your assets that you would not qualify for financial aid TODAY, much less 8 years from now (unless it's all in retirement accounts.) So personally I would not stay awake at night worrying about FAFSA forms. Admiral, https://www.fastweb.com/financial-aid/articles/how-do-retiremen...
by Admiral
Wed Oct 04, 2017 8:55 am
Forum: Investing - Help with Personal Investments
Topic: Add to 529 to Keep Funding Taxable?
Replies: 38
Views: 1899

Re: Add to 529 to Keep Funding Retirement?

I know BND ER is 0.05% versus VTEB 0.09%. My main reason for going with VTEB was "tax exempt' but given these are in IRAs anyway the impact may not be high enough to justify a 0.04% ER increase. The expense ratio difference is minuscule. The problem with keeping tax exempt bonds in an IRA is that t...
by Admiral
Tue Oct 03, 2017 12:19 pm
Forum: Investing - Help with Personal Investments
Topic: Add to 529 to Keep Funding Taxable?
Replies: 38
Views: 1899

Re: Add to 529 to Keep Funding Retirement?

Right now our taxable is in a private equity REIT (with average 9-10% returns for the last 2 years we've held it), small % individual stocks, and cash. Uh-oh. :shock: And the ER there is...? Something like: - Receive one time acquisition fee equal to 2% of purchase price of each property purchased ...
by Admiral
Tue Oct 03, 2017 11:51 am
Forum: Investing - Help with Personal Investments
Topic: Add to 529 to Keep Funding Taxable?
Replies: 38
Views: 1899

Re: Add to 529 to Keep Funding Retirement?

cornellmoore wrote:
Tue Oct 03, 2017 11:49 am


Right now our taxable is in a private equity REIT (with average 9-10% returns for the last 2 years we've held it), small % individual stocks, and cash.
Uh-oh. :shock: And the ER there is...?
by Admiral
Tue Oct 03, 2017 11:35 am
Forum: Investing - Help with Personal Investments
Topic: Pay off mortgage instead of bond investment
Replies: 28
Views: 2165

Re: Pay off mortgage instead of bond investment

... You can then invest your "mortgage payment" each month in more aggressive investments with your normal asset allocation that you will hold for several decades so you will not have the sequence of returns risk. Instead you will get the advantages of dollar cost averaging. But the OP is ALREADY l...
by Admiral
Tue Oct 03, 2017 11:20 am
Forum: Investing - Help with Personal Investments
Topic: Add to 529 to Keep Funding Taxable?
Replies: 38
Views: 1899

Re: Add to 529 to Keep Funding Retirement?

Thank you all for your input. Having lurked around here for years, I've learned "fund retirement first" approach. But at this point we've maxed all tax-advantaged contributions we're able to max, and we were not eligible for roth contributions for 2016. 2017 will not be a good year for back door ro...
by Admiral
Tue Oct 03, 2017 10:59 am
Forum: Investing - Help with Personal Investments
Topic: Pay off mortgage instead of bond investment
Replies: 28
Views: 2165

Re: Pay off mortgage instead of bond investment

I just gave this same advise to a younger person. It makes no sense to lose money to interest and make less money off investing in bonds. Who in their right mind would pay 3% per year to borrow money so that they can earn 2% interest. That is not his situation. He's paying about 2% (effective rate)...
by Admiral
Tue Oct 03, 2017 10:37 am
Forum: Investing - Help with Personal Investments
Topic: Pay off mortgage instead of bond investment
Replies: 28
Views: 2165

Re: Pay off mortgage instead of bond investment

I just gave this same advise to a younger person. It makes no sense to lose money to interest and make less money off investing in bonds. Who in their right mind would pay 3% per year to borrow money so that they can earn 2% interest. That is not his situation. He's paying about 2% (effective rate)...
by Admiral
Tue Oct 03, 2017 10:23 am
Forum: Investing - Help with Personal Investments
Topic: Pay off mortgage instead of bond investment
Replies: 28
Views: 2165

Re: Pay off mortgage instead of bond investment

Welcome to the forum. What is your net interest savings if you pay off the mortgage tomorrow? It can't be a lot because I have a mortgage that is larger than yours (albeit with a slightly lower rate) and the interest over 15 years is quite low. Here's what I find a little odd about your situation: Y...
by Admiral
Tue Oct 03, 2017 9:43 am
Forum: Investing - Help with Personal Investments
Topic: Add to 529 to Keep Funding Taxable?
Replies: 38
Views: 1899

Re: Add to 529 to Keep Funding Retirement?

I get your risk aversion but: Your portfolio is WAY too conservative. Your five-year average gain is great but overall meaningless for a long-term investor; everyone's five- (or even nine-) year average is great. Thank you bull market. Fully fund all retirement space before 529s. You can always use ...
by Admiral
Mon Oct 02, 2017 1:36 pm
Forum: Personal Finance (Not Investing)
Topic: Cash on hand for emergencies
Replies: 41
Views: 2818

Re: Cash on hand for emergencies

I think you're going to get replies that run the gamut from greatness's to samoses's. Some people are preppers, some are not. Some people expect and plan for the worst, and some don't. Certainly if I lived in a rural area I would most likely have a generator, and/or water if I had a well that requir...
by Admiral
Sat Sep 30, 2017 3:07 pm
Forum: Personal Finance (Not Investing)
Topic: Budgets: how do you track irregular income and expenses
Replies: 35
Views: 2384

Re: Budgets: how do you track irregular income and expenses

OP, If your expense is under control, why do you need to budget? I do not budget my expense. I make sure that I save enough every year. Then, I spend the rest. I do track my expense annually. KlangFool Replace the word "budget" with "track" or "account for." I like to see where the money goes and h...
by Admiral
Sat Sep 30, 2017 9:23 am
Forum: Personal Finance (Not Investing)
Topic: Budgets: how do you track irregular income and expenses
Replies: 35
Views: 2384

Budgets: how do you track irregular income and expenses

I'm finding that my budget tracking is not working well due to my method of accounting for non-monthly income and expenses, and wondering how others do it. For example, we have non-monthly (that is, bi-annual or perhaps quarterly) expenses totaling around $22,000 annually. This includes things like ...
by Admiral
Fri Sep 29, 2017 2:33 pm
Forum: Personal Finance (Not Investing)
Topic: Question: Why do people put/keep millions of dollars in investment accounts?
Replies: 66
Views: 8262

Re: Question: Why do people put/keep millions of dollars in investment accounts?

..Sure, you keep a few hundred thousand dollars in safe CDs, money market, and/or bonds, but burying much more than that doesn't make sense. Not sure where the risk concern is coming from. Obviously, you can do stupid stuff with real estate like with anything, but we're not talking about that. I un...
by Admiral
Fri Sep 29, 2017 1:41 pm
Forum: Personal Finance (Not Investing)
Topic: Question: Why do people put/keep millions of dollars in investment accounts?
Replies: 66
Views: 8262

Re: Question: Why do people put/keep millions of dollars in investment accounts?

... In particular, I don't believe in large bond holdings since it's dead money - put it in direct real estate. Umm...say what? What is "dead money"? Last I checked bonds and bond funds had relatively decent returns for their low level of risk. And historically have been a very effective way to con...
by Admiral
Fri Sep 29, 2017 12:16 pm
Forum: Personal Finance (Not Investing)
Topic: Question: Why do people put/keep millions of dollars in investment accounts?
Replies: 66
Views: 8262

Re: Question: Why do people put/keep millions of dollars in investment accounts?

Owning real estate (as a landlord) or owning and running businesses take a lot of work to make them successful, or else you're paying someone else to do it for you, reducing your returns. Investments provide diversified, passive income via capital appreciation at very low cost. Not much more complic...
by Admiral
Thu Sep 28, 2017 11:14 am
Forum: Personal Finance (Not Investing)
Topic: 20% Down Payment Sub-optimal?
Replies: 54
Views: 4406

Re: 20% Down Payment Sub-optimal?

.. Yeah, that is what I was going for. I am in this situation. I am 24 years old and home ownership is not a high priority goal for me at the moment. I am maxing out my TSP and IRA. That only leaves a few hundred dollars of excess to divert to savings every month. I don't particularly want to own a...
by Admiral
Thu Sep 28, 2017 11:00 am
Forum: Personal Finance (Not Investing)
Topic: 20% Down Payment Sub-optimal?
Replies: 54
Views: 4406

Re: 20% Down Payment Sub-optimal?

.. Yeah, that is what I was going for. I am in this situation. I am 24 years old and home ownership is not a high priority goal for me at the moment. I am maxing out my TSP and IRA. That only leaves a few hundred dollars of excess to divert to savings every month. I don't particularly want to own a...
by Admiral
Thu Sep 28, 2017 10:50 am
Forum: Personal Finance (Not Investing)
Topic: 20% Down Payment Sub-optimal?
Replies: 54
Views: 4406

Re: 20% Down Payment Sub-optimal?

Does anyone know if conventional mortgage interest rates are always better with the more you put down? As in, if you put down 5%, will your rate be worse than if you put down 20%? I believe so. What about 15% instead of 20%? Just curious if there's a percentage where it plateaus. Would be a helpful...
by Admiral
Thu Sep 28, 2017 9:59 am
Forum: Personal Finance (Not Investing)
Topic: Retirement Plan and accounting for inflation
Replies: 16
Views: 1734

Re: Retirement Plan and accounting for inflation

I heartily agree with the comments against Monte Carlo simulations raised above. The simulations generally are no more complex than generating a random number each year within a range for each asset category and for inflation. If you're lucky they used a bell curve around some median. There is no a...
by Admiral
Wed Sep 27, 2017 11:11 am
Forum: Personal Finance (Not Investing)
Topic: 20% Down Payment Sub-optimal?
Replies: 54
Views: 4406

Re: 20% Down Payment Sub-optimal?

The OP doesn’t consider that by not saving up 20% you haven’t demonstrating your ability to live below your means which is usually a prerequisite for being able to afford a home. If your rent is $1000/mo and the refrigerator goes, you still pay $1000 that month. If you get an invasion of ants and t...
by Admiral
Wed Sep 27, 2017 11:07 am
Forum: Personal Finance (Not Investing)
Topic: 20% Down Payment Sub-optimal?
Replies: 54
Views: 4406

Re: 20% Down Payment Sub-optimal?

Does anyone know if conventional mortgage interest rates are always better with the more you put down? As in, if you put down 5%, will your rate be worse than if you put down 20%? I believe so. What about 15% instead of 20%? Just curious if there's a percentage where it plateaus. Would be a helpful...
by Admiral
Wed Sep 27, 2017 10:13 am
Forum: Personal Finance (Not Investing)
Topic: Retirement Plan and accounting for inflation
Replies: 16
Views: 1734

Re: Retirement Plan and accounting for inflation

I suggest you take a look at Flexible Retirement Planner, Monte Carlo simulator. It has lots of inputs and will run simulations using a fixed, conservative, and flexible spending strategy and (to your point) allows you to not only input expected inflation but also standard deviation. I use 2% but wi...
by Admiral
Tue Sep 26, 2017 1:24 pm
Forum: Personal Finance (Not Investing)
Topic: 20% Down Payment Sub-optimal?
Replies: 54
Views: 4406

Re: 20% Down Payment Sub-optimal?

One cannot compare a known return (the cost of a fixed mortgage) with one of an unknown and unknowable return (the stock market) and use that as the basis for judging risk/return. I disagree. One has to. Do you invest your money in safe low return instruments like TIPS or paying down a mortgage or ...
by Admiral
Tue Sep 26, 2017 11:14 am
Forum: Personal Finance (Not Investing)
Topic: 20% Down Payment Sub-optimal?
Replies: 54
Views: 4406

Re: 20% Down Payment Sub-optimal?

These kinds of analyses crack me up. They throw lots of numbers around to make it look complicated, when it fact it's quite simple: One cannot compare a known return (the cost of a fixed mortgage) with one of an unknown and unknowable return (the stock market) and use that as the basis for judging r...
by Admiral
Tue Sep 26, 2017 10:01 am
Forum: Personal Consumer Issues
Topic: Worth Refinancing?
Replies: 12
Views: 988

Re: Worth Refinancing?

Thanks for all of the replies! I've thought about doing a 15 year loan, but I have an account that guarantees 5.5% returns (I know nothing is a guarantee but anyways...). So i thought it would be better to keep the 30 year loan and put the rest of my house savings in the 5.5% account. I'll try shop...