Search found 660 matches

by magicrat
Fri May 17, 2019 12:58 pm
Forum: Personal Investments
Topic: Best way to deploy $450,000 of IRA money right now
Replies: 30
Views: 1899

Re: Best way to deploy $450,000 of IRA money right now

If their target AA is 40/60 then they should invest as such. If they are uncomfortable doing so, perhaps that is too much risk for them to take on and they should reevaluate their plan.
by magicrat
Wed May 15, 2019 8:06 am
Forum: Personal Finance (Not Investing)
Topic: Do you reward yourself for achieving a financial goal?
Replies: 107
Views: 6299

Re: Do you reward yourself for achieving a financial goal?

If you buy a BMW when you get to $500k...you're not going to have $500k anymore. If you buy the car, do you buy another one when you get back to $500k?
by magicrat
Tue May 14, 2019 3:20 pm
Forum: Personal Finance (Not Investing)
Topic: Pay myself for pilot training or invest them?
Replies: 18
Views: 1215

Re: Pay myself for pilot training or invest them?

vu8 wrote:
Tue May 14, 2019 12:26 pm
They will pay for some borderline uesless graduate degrees such as an MBA...
Why do you think this is useless?
by magicrat
Tue May 14, 2019 12:45 pm
Forum: Personal Investments
Topic: Vanguard Cost Basis View
Replies: 9
Views: 954

Re: Vanguard Cost Basis View

Very annoying response from my rep: "I hope this e-mail finds you well. I just pulled up your cost basis and everything is displayed. You have a couple zero balance accounts and you may not have scrolled down far enough to see your active accounts and funds with cost basis. Thank you for entrusting ...
by magicrat
Tue May 14, 2019 12:11 pm
Forum: Personal Investments
Topic: Priorities (tax related) before RMDs start?
Replies: 4
Views: 554

Re: Priorities (tax related) before RMDs start?

Hard to advise without the specifics. I suggest posting in the usual format: https://www.bogleheads.org/wiki/Asking_ ... _questions
by magicrat
Tue May 14, 2019 11:29 am
Forum: Investing - Theory, News & General
Topic: Nobody knows nothing and AA
Replies: 19
Views: 2199

Re: Nobody knows nothing and AA

Since no one can predict future returns are there any good strategies for AA where you adapt it to what the market is doing at any given time? Surely there is a way to market time to get better results than sticking to a set AA, right? Anybody actually able to out perform the standard rebalancing m...
by magicrat
Tue May 14, 2019 10:30 am
Forum: Personal Investments
Topic: Vanguard Cost Basis View
Replies: 9
Views: 954

Re: Vanguard Cost Basis View

Same here. Two days in a row. I sent a message to my rep this morning but haven't heard back.
by magicrat
Mon May 13, 2019 1:54 pm
Forum: Personal Investments
Topic: Email to my Edward Jones Rep
Replies: 46
Views: 4188

Re: Email to my Edward Jones Rep

If you want to treat him well, don't waste his time gathering data if you've already made your decision. Start the transfer from the receiving institution, then send him a note thanking him for his help and letting him know that you're moving on.
by magicrat
Fri May 03, 2019 10:52 pm
Forum: Personal Finance (Not Investing)
Topic: Please Critique our Budget
Replies: 28
Views: 2151

Re: Please Critique our Budget

rashad3000 wrote:
Fri May 03, 2019 2:39 pm

$375/mo- Wife
$250/mo- Husband
This is a clear opportunity to cut $125/mo.
by magicrat
Wed May 01, 2019 12:23 pm
Forum: Personal Investments
Topic: Social responsibility investing in my 401k?
Replies: 13
Views: 682

Re: Social responsibility investing in my 401k?

Did you look at the holdings of that fund? The top 10 holdings include 2 financial firms (JP Morgan Chase, Visa, Bank of America), so it doesn't seem to fit your criteria.
by magicrat
Wed May 01, 2019 11:52 am
Forum: Personal Investments
Topic: Mega backdoor Roth question
Replies: 13
Views: 1042

Re: Mega backdoor Roth question

How long does she expect to be with that employer? One option is to max after tax contributions, then when she leaves rollover the contributions to a rIRA and earnings to a tIRA.
by magicrat
Wed May 01, 2019 9:48 am
Forum: Personal Investments
Topic: Keep contributing to 401K and Roth or do something else?
Replies: 3
Views: 424

Re: Keep contributing to 401K and Roth or do something else?

You can withdrawal Roth contributions after 5 years with no penalty. For your 401k look up rule 72(t) which allows for early distributions with certain restrictions. I see no reason to forgo tax advantaged space given the information you provided.
by magicrat
Wed May 01, 2019 8:47 am
Forum: Personal Investments
Topic: Initial retirement investing in a record high stock market
Replies: 105
Views: 7715

Re: Initial retirement investing in a record high stock market

I wanted to dollar cost average in over a reasonable time to get a better price vs jumping all in in one day. This was also suggested by a major financial planning firm my company lets us use for 5 yrs to consult after retirement. . Plus it lets me get used to investing and averages out the noise. ...
by magicrat
Wed May 01, 2019 8:36 am
Forum: Personal Investments
Topic: Initial retirement investing in a record high stock market
Replies: 105
Views: 7715

Re: Initial retirement investing in a record high stock market

You have laid out a plan that is presumably well thought out and suited for you. Yet you sit here today at 90% cash - way, way off of your plan. Either the plan is wrong or the execution is wrong. You'll have to decide which.
by magicrat
Mon Apr 29, 2019 2:03 pm
Forum: Investing - Theory, News & General
Topic: Why does rebalancing reduce total return?
Replies: 23
Views: 2304

Re: Why does rebalancing reduce total return?

Another way to look at it is, "expected returns" is a relative concept. If your "expected returns" are based on your originally determined asset allocation, then resetting to that allocation should not "reduce" expected returns but rather put them at the originally expected level. [/quote] Oooh. I ...
by magicrat
Mon Apr 29, 2019 1:41 pm
Forum: Personal Investments
Topic: Discount rate for present value of state pension
Replies: 6
Views: 425

Re: Discount rate for present value of state pension

I think using CPI makes sense. However, since you don't know what CPI will be, run some different scenarios and see what happens under each.
by magicrat
Mon Apr 29, 2019 1:38 pm
Forum: Investing - Theory, News & General
Topic: Why does rebalancing reduce total return?
Replies: 23
Views: 2304

Re: Why does rebalancing reduce total return?

Rebalancing is not meant to increase returns, it is meant to manage risk. If you want higher (expected) returns, allocate more to stocks. Or as stocks outperform and your asset allocation to stocks drifts upwards, don't rebalance.
by magicrat
Mon Apr 29, 2019 12:59 pm
Forum: Investing - Theory, News & General
Topic: Formulaic asset allocation using drifting target dates
Replies: 7
Views: 351

Re: Formulaic asset allocation using drifting target dates

The idea of adjusting your AA based on material changes in your life and plans makes sense. However, I think that devising a formula to account for all possible scenarios is at best a waste of time and at worst detrimental if you end up yo-yoing. A 72% vs. 60% is not a huge change to your portfolio....
by magicrat
Mon Apr 29, 2019 12:43 pm
Forum: Investing - Theory, News & General
Topic: Alpha Architect: Buyer Beware:The Reality Of Tax Loss Harvesting Benefits
Replies: 22
Views: 2097

Re: Alpha Architect: Buyer Beware:The Reality Of Tax Loss Harvesting Benefits

Their base case shows a 0.3% annual benefit. That is pretty good in my opinion considering the actual costs are quite low. Unfortunately they then make a bunch of negative points that don't make sense. Trading costs of 0.28%? Really? My trading costs are 0. Future tax rates going up? Irrelevant. If ...
by magicrat
Mon Apr 29, 2019 11:19 am
Forum: Investing - Theory, News & General
Topic: Thoughts on this Forbes article? "Why Most Index Funds And ETFs Are Not Good Investments"
Replies: 76
Views: 10529

Re: The counterargument [Index investing is not a good strategy for most]

So he looks backward, cherry picks his time period, and only cites 1 fund out of 500 that outperformed? Sounds like evidence for index investing, not against.
by magicrat
Mon Apr 29, 2019 10:26 am
Forum: Personal Investments
Topic: Simple Aggressive Portfolio
Replies: 10
Views: 746

Re: Simple Aggressive Portfolio

My advice: Manage your investments as one portfolio with one strategy and plan. Having an "aggressive" and "conservative" account just means you end up with the average of the two.

Also, no idea what those tickers are.
by magicrat
Wed Apr 24, 2019 10:53 am
Forum: Investing - Theory, News & General
Topic: Boglehead age adjusted asset plan?
Replies: 13
Views: 1429

Re: Boglehead age adjusted asset plan?

Asset allocation should be based on your ability, willingness, and need to take risk (noting that sometimes those factors are in conflict).
by magicrat
Mon Apr 22, 2019 9:41 am
Forum: Personal Investments
Topic: Should I be in Bonds?
Replies: 20
Views: 1588

Re: Should I be in Bonds?

There's nothing wrong with 100% stocks at your age. However, the risk is that you won't actually be able to handle a 50%+ decline in equities the way you think you can and will panic sell.
by magicrat
Tue Apr 16, 2019 1:01 pm
Forum: Investing - Theory, News & General
Topic: Fixed Indexed Annuities
Replies: 22
Views: 1176

Re: Fixed Indexed Annuities

The only guarantee is that the "advisor" will make a hefty commission that will come directly out of your pocket.
by magicrat
Tue Apr 16, 2019 12:36 pm
Forum: Personal Investments
Topic: How did it come to this? [Help with investments]
Replies: 48
Views: 4716

Re: How did it come to this? [Help with investments]

If you want to hold more bonds without realizing capital gains, hold the bonds in your 401k.

Also, an aside, but I would avoid telling people you have 50 ounces of gold in your house.
by magicrat
Tue Apr 16, 2019 12:32 pm
Forum: Personal Investments
Topic: Advice regarding Roth IRA
Replies: 3
Views: 304

Re: Advice regarding Roth IRA

Stick to your plan but start to implement tax-efficient placement

https://www.bogleheads.org/wiki/Tax-eff ... _placement
by magicrat
Thu Apr 11, 2019 3:00 pm
Forum: Personal Investments
Topic: seeking financial advice
Replies: 4
Views: 508

Re: seeking financial advice

Based on this and last year's post, Vanguard PAS is a great option for you.
by magicrat
Thu Apr 11, 2019 11:19 am
Forum: Personal Finance (Not Investing)
Topic: Should I close a Roth IRA account?
Replies: 20
Views: 1254

Re: Should I close a Roth IRA account?

What does your wife think? It's her account.
by magicrat
Thu Apr 11, 2019 8:22 am
Forum: Investing - Theory, News & General
Topic: Active vs Passive Fund management
Replies: 18
Views: 1357

Re: Active vs Passive Fund management

OP - What strategy would you put in place if you accept these conclusions? Would you invest in 80% of the equity mutual funds that are available?
by magicrat
Wed Apr 10, 2019 1:47 pm
Forum: Personal Investments
Topic: 3 Fund Portfolio Bond Question
Replies: 9
Views: 689

Re: 3 Fund Portfolio Bond Question

A savings account is not a bond, so I would not count it as one. It is cash. If it is your emergency fund, then it is not part of your asset allocation. If it is part of your portfolio for retirement, etc., then you have an asset allocation that includes cash.
by magicrat
Wed Apr 10, 2019 9:17 am
Forum: Investing - Theory, News & General
Topic: Asset allocation if 60 % in company stock
Replies: 15
Views: 1224

Re: Asset allocation if 60 % in company stock

It sounds like you did offer advice, and your friend rejected it. Personally, I would stop there.
by magicrat
Wed Apr 10, 2019 9:15 am
Forum: Personal Finance (Not Investing)
Topic: Bogleheads, why won't anyone hire me?
Replies: 194
Views: 17678

Re: Bogleheads, why wont anyone hire me?

SevenBridgesRoad wrote:
Tue Apr 09, 2019 11:00 pm
You have a maturity problem.
I agree with this. Based on your attitude on this thread I would not be willing to help you.
by magicrat
Mon Apr 08, 2019 2:52 pm
Forum: Investing - Theory, News & General
Topic: Retirees: Are you annually spending in Real or Nominal Terms?
Replies: 63
Views: 3892

Re: Retirees: Are you annually spending in Real or Nominal Terms?

I'm not retired, but when I am I will track as you described. I currently track all historical annual expenses in real terms (i.e., update previous spending each year for past year's inflation to reflect a current dollar amount).
by magicrat
Fri Apr 05, 2019 1:19 pm
Forum: Personal Finance (Not Investing)
Topic: Married couples: can you have a team mentality with separate finances?
Replies: 183
Views: 8552

Re: Married couples: can you have a team mentality with separate finances?

OP - Does your husband's "philosophy" of "fairness" extend to non-financial areas? Does he do 100% of his laundry, clean up 100% of what he makes dirty, make all of the food that he eats, handle his car maintainence, all appointments, deal with his family, maintain 50% of your friendships, do 50% of...
by magicrat
Fri Apr 05, 2019 8:09 am
Forum: Personal Investments
Topic: Need advice on fund selection for taxable account
Replies: 5
Views: 539

Re: Need advice on fund selection for taxable account

I would go with #3 and wouldn't think twice about the $30-40 in taxes it will take to do so.
by magicrat
Fri Apr 05, 2019 7:45 am
Forum: Personal Finance (Not Investing)
Topic: Backdoor Roth Tax implications
Replies: 9
Views: 924

Re: Backdoor Roth Tax implications

You can do a conversion whenever you want. Conversions are reported in the year they occur. Conversions and contributions are unrelated.

Edited to correct terminology.
by magicrat
Thu Apr 04, 2019 11:43 am
Forum: Personal Investments
Topic: Clean up of 100+ stocks in taxable
Replies: 32
Views: 2665

Re: Clean up of 100+ stocks in taxable

When you use your losses to offset gains, make sure you first sell lots that have the highest cost basis (and therefore the lowest amount of gains as a % of the lot).
by magicrat
Thu Apr 04, 2019 8:04 am
Forum: Personal Finance (Not Investing)
Topic: Federal tax refund? What are you doing with it?
Replies: 54
Views: 2446

Re: Federal tax refund? What are you doing with it?

My refund or payment just counts as income (or negative income) for the month. Treating it as something special doesn't make sense. Money is fungible. Also, having a refund is not desirable.
by magicrat
Wed Apr 03, 2019 11:10 am
Forum: Personal Investments
Topic: Add muni bonds to taxable account?
Replies: 3
Views: 356

Re: Add muni bonds to taxable account?

You might get better advice if you post in the usual format and tell us what those funds are (most here haven't memorized ticker symbols). Your tax rate is also relevant. In general though, you should hold your bonds in pre-tax. Putting bonds in taxable to save $80 almost certainly makes no sense. Y...
by magicrat
Wed Apr 03, 2019 9:51 am
Forum: Personal Investments
Topic: Investors Fantasy Plan
Replies: 9
Views: 669

Re: Investors Fantasy Plan

Sorry but you missed out. The market corrected last year.
by magicrat
Wed Apr 03, 2019 9:45 am
Forum: Personal Finance (Not Investing)
Topic: Household budget, savings, retirement, and Home Equity question
Replies: 23
Views: 2292

Re: Household budget, savings, retirement, and Home Equity question

Also consider refinancing to a 30 year mortgage and stop sending money to parents.
by magicrat
Tue Apr 02, 2019 2:37 pm
Forum: Investing - Theory, News & General
Topic: Forecasting future returns / net worth
Replies: 10
Views: 1356

Re: Forecasting future returns / net worth

All of my planning is in real dollars.
by magicrat
Tue Apr 02, 2019 12:47 pm
Forum: Personal Consumer Issues
Topic: Want to see a concert! Ideas?
Replies: 50
Views: 2561

Re: Want to see a concert! Ideas?

barnaclebob wrote:
Tue Apr 02, 2019 12:31 pm
magicrat wrote:
Tue Apr 02, 2019 12:16 pm
Skip the arena and mass-produced trash and go see a real band in a real music venue:

https://www.930.com/#upcoming-shows-container

https://www.theanthemdc.com/calendar/

http://www.blackcatdc.com/schedule.html
Are you familiar with the term "gatekeeping"
Yes. Do you have a point?
by magicrat
Tue Apr 02, 2019 12:16 pm
Forum: Personal Consumer Issues
Topic: Want to see a concert! Ideas?
Replies: 50
Views: 2561

Re: Want to see a concert! Ideas?

Skip the arena and mass-produced trash and go see a real band in a real music venue:

https://www.930.com/#upcoming-shows-container

https://www.theanthemdc.com/calendar/

http://www.blackcatdc.com/schedule.html
by magicrat
Tue Apr 02, 2019 8:59 am
Forum: Personal Investments
Topic: The tactics of Withdrawal -McClung model
Replies: 14
Views: 1399

Re: The tactics of Withdrawal -McClung model

what is "the initial mark"??
by magicrat
Mon Apr 01, 2019 1:55 pm
Forum: Personal Finance (Not Investing)
Topic: TOD/POD/Trust question
Replies: 22
Views: 1445

Re: TOD/POD/Trust question

Depends on how much you have and whether you have a reason to want to avoid probate.
by magicrat
Mon Apr 01, 2019 11:48 am
Forum: Personal Investments
Topic: good post-retirment calculator?
Replies: 4
Views: 422

Re: good post-retirment calculator?

What are you trying to calculate?
by magicrat
Thu Mar 28, 2019 10:17 pm
Forum: Personal Investments
Topic: $480K, no job, special needs kids, what to do?
Replies: 52
Views: 5483

Re: $480K, no job, special needs kids, what to do?

Does your experience lend itself to part-time consulting? There are a number of platforms out there that match experiences execs with projects. Some are hourly phone consultations (e.g., GLG) and some are more traditional consulting projects (e.g. Highpoint).
by magicrat
Thu Mar 28, 2019 6:15 pm
Forum: Personal Investments
Topic: Allocation for Those Late to the Party
Replies: 76
Views: 3394

Re: Allocation for Those Late to the Party

What are your goals? Is this for retirement? What sources of income do you have now and in retirement?