Search found 999 matches

by magicrat
Mon Jul 13, 2020 12:54 pm
Forum: Personal Investments
Topic: Teens - Roth IRA - Allocation
Replies: 19
Views: 864

Re: Teens - Roth IRA - Allocation

Let these adults make the decisions for themselves. Provide them with resources (like Bogleheads, etc) then just be there to help/answer questions if they ask. My aunt funded ~$4k in Roth contributions for me when I was about their age. It was originally in a mutual fund. This was during the .com bu...
by magicrat
Mon Jul 13, 2020 12:17 pm
Forum: Personal Consumer Issues
Topic: What are you listening to now
Replies: 759
Views: 40504

Re: What are you listening to now

Japandroids: Live From Massey F***ing Hall!
by magicrat
Mon Jul 13, 2020 12:11 pm
Forum: Personal Investments
Topic: Lump Sum -or- DCA approach always petrifies me
Replies: 11
Views: 722

Re: Lump Sum -or- DCA approach always petrifies me

Dial back your stock allocation until you are comfortable investing now.
by magicrat
Fri Jul 10, 2020 5:38 pm
Forum: Personal Finance (Not Investing)
Topic: Filed paper return in mid March. Still no status
Replies: 25
Views: 1735

Re: Filed paper return in mid March. Still no status

I file by paper and pay with check. IRS received my return last Friday. Check was cashed Tuesday. Guessing they are prioritizing returns with payment due 😀
by magicrat
Fri Jul 10, 2020 4:43 pm
Forum: Personal Investments
Topic: Investment strategy at 35
Replies: 30
Views: 2578

Re: Investment strategy at 35

makes complete sense. But then why would one choose dividend portfolio strategy? So confusing. Because they are making a mistake Or they are willing to have lower returns in exchange for the convenience of not having to enter a “sale” order. I would characterize that as a mistake. Also higher taxes...
by magicrat
Fri Jul 10, 2020 4:19 pm
Forum: Personal Investments
Topic: Investment strategy at 35
Replies: 30
Views: 2578

Re: Investment strategy at 35

GL0407 wrote:
Fri Jul 10, 2020 4:09 pm
makes complete sense. But then why would one choose dividend portfolio strategy? So confusing.
Because they are making a mistake
by magicrat
Fri Jul 10, 2020 4:05 pm
Forum: Personal Investments
Topic: Investment strategy at 35
Replies: 30
Views: 2578

Re: Investment strategy at 35

I understand that, but that's just the crazy market at the moment. And the stock I own are mostly paying dividends for decades, which my amount of share will raise over the years. And value of stock may vary. If I can gain better Dividends and eventually have the return go into positive as well, wo...
by magicrat
Thu Jul 09, 2020 7:35 am
Forum: Personal Investments
Topic: Is it better to contribute to non deductible IRA and do backdoor Roth IRA in the same calendar year?
Replies: 10
Views: 693

Re: Is it better to contribute to non deductible IRA and do backdoor Roth IRA in the same calendar year?

Contribute and convert right away. There is. I reason to wait, tax year or otherwise.

Also, note that there is no such thing as a non-deductible IRA. What you are doing is making non-deductible contributions.
by magicrat
Tue Jul 07, 2020 5:27 pm
Forum: Personal Investments
Topic: VYM and getting killed [Vanguard High Dividend Yield ETF]
Replies: 31
Views: 2582

Re: VYM and getting killed

What’s a VYM?
by magicrat
Thu Jul 02, 2020 8:33 am
Forum: Personal Investments
Topic: withdraw strategies in this market Bucket 1 or Bucket 2?
Replies: 5
Views: 468

Re: withdraw strategies in this market Bucket 1 or Bucket 2?

You should have a target asset allocation. When selling, sell from assets that are over the target.
by magicrat
Wed Jul 01, 2020 12:03 pm
Forum: Personal Investments
Topic: Critique my dividend retirement portfolio
Replies: 22
Views: 1112

Re: Critique my dividend retirement portfolio

gekko1 wrote:
Wed Jul 01, 2020 10:58 am
magicrat wrote:
Wed Jul 01, 2020 10:50 am
A 4.2% withdrawal rate is pretty aggressive for such a long retirement
To clarify, 4.2% is the yield. I do not plan to withdraw. All excess yield will be reinvested.
Dividends are part of withdrawal rate. What is your projected withdrawal rate?
by magicrat
Wed Jul 01, 2020 10:50 am
Forum: Personal Investments
Topic: Critique my dividend retirement portfolio
Replies: 22
Views: 1112

Re: Critique my dividend retirement portfolio

A 4.2% withdrawal rate is pretty aggressive for such a long retirement
by magicrat
Mon Jun 29, 2020 1:58 pm
Forum: Investing - Theory, News & General
Topic: What's a good source to see inflation predictions?
Replies: 10
Views: 650

Re: What's a good source to see inflation predictions?

Try looking at the difference between TIPS and nominal treasuries
by magicrat
Sat Jun 27, 2020 1:03 pm
Forum: Investing - Theory, News & General
Topic: lump sum investing vs dollar cost averaging in the present market
Replies: 66
Views: 3182

Re: lump sum investing vs dollar cost averaging in the present market

If you are going to DCA with this money, why wouldn’t you DCA with the rest of your investments (I.e., sell them all now, and DCA back in)?

Taxes aside of course
by magicrat
Sat Jun 27, 2020 12:56 pm
Forum: Personal Investments
Topic: Portfolio Review- Morgan Stanley Fees and Performance
Replies: 8
Views: 686

Re: Portfolio Review- Morgan Stanley Fees and Performance

I think the biggest issue is one that you did not mention: she is in the 24% tax bracket but only saving $6k per year. Is this enough to achieve her goals?
by magicrat
Fri Jun 26, 2020 8:08 am
Forum: Personal Investments
Topic: Portfolio Advice - Keep Investing in Taxable?
Replies: 2
Views: 247

Re: Portfolio Advice - Keep Investing in Taxable?

1. HSA if you have one. After-tax 401k w/ mega backdoor option if your plan(s) have this feature. 2. I suggest keeping all bonds in pre-tax. Then bonds in taxable if you run out of pre-tax space (whether you use tax-exempt bond funds here depends on your tax rate). 3. You can, but I don't think it i...
by magicrat
Fri Jun 26, 2020 7:10 am
Forum: Personal Investments
Topic: What day of the week is best for a weekly investment in a Roth IRA?
Replies: 27
Views: 1854

Re: What day of the week is best for a weekly investment in a Roth IRA?

The best day to invest is the day you have the money
by magicrat
Wed Jun 24, 2020 6:38 pm
Forum: Personal Finance (Not Investing)
Topic: Merit increase: lump sum bonus vs additional PTO?
Replies: 22
Views: 1165

Re: Merit increase: lump sum bonus vs additional PTO?

Personal preference. I would take the PTO hands down. Not even close for me.
by magicrat
Tue Jun 23, 2020 7:37 pm
Forum: Personal Investments
Topic: Help me advise my 20 year old
Replies: 54
Views: 3097

Re: Help me advise my 20 year old

lifestooshort wrote:
Tue Jun 23, 2020 5:45 pm
magicrat wrote:
Tue Jun 23, 2020 1:49 pm
Share with him the resources here and let him make his own decisions.
I'm trying, but you know how well kids listen. :oops:
Why do you need him to listen?
by magicrat
Tue Jun 23, 2020 1:49 pm
Forum: Personal Investments
Topic: Help me advise my 20 year old
Replies: 54
Views: 3097

Re: Help me advise my 20 year old

Share with him the resources here and let him make his own decisions.
by magicrat
Tue Jun 23, 2020 9:55 am
Forum: Investing - Theory, News & General
Topic: 4% Rule and annuities
Replies: 35
Views: 2627

Re: 4% Rule and annuities

Not saying that they should have similar yields (although strong EMH believer might think it would be strongly tied!) Just that you can't say the 4% rule is dead if any retirement age person can safely get more. Anyone nearer typical retirement age surely covers much or all of expected inflation. I...
by magicrat
Tue Jun 16, 2020 10:15 am
Forum: Personal Investments
Topic: Traditional IRA contribution.
Replies: 5
Views: 175

Re: Traditional IRA contribution.

Do backdoor roth unless you already have tIRAs
by magicrat
Tue Jun 16, 2020 7:28 am
Forum: Personal Investments
Topic: Help me Built a Dividend Growth Investment Portfolio [new thread]
Replies: 25
Views: 1732

Re: Help me Built a Dividend Growth Investment Portfolio [new thread]

I can't quite embrace the concept of worrying about withdrawals reducing a $30M portfolio, but the fact is that if you look at dividend growth funds, they yield about the same dividends or sometimes less than a total market fund. As is often the case, there seems to be some confusion here between h...
by magicrat
Tue Jun 16, 2020 7:25 am
Forum: Personal Investments
Topic: Help me Built a Dividend Growth Investment Portfolio [new thread]
Replies: 25
Views: 1732

Re: Help me Built a Dividend Growth Investment Portfolio [new thread]

Thank you all for the education. I guess I had been assuming (and with such assumption egged on by a financial adviser) that retirement should bring a wholesale change to my overall investment approach, towards income. Thank you for the correction. Thank you also for the welcomes. I did not realize...
by magicrat
Mon Jun 15, 2020 1:03 pm
Forum: Personal Investments
Topic: Long-term market timing - tell me not to do it
Replies: 13
Views: 1053

Re: Long-term market timing - tell me not to do it

If you were brand new to the forum I'd go through all the reasons not to market time. But you have been a forum member for 5 years. You have access to all of the content on this site and can read through the countless similar threads and the wiki. I'm sure you have. Far be it for me to talk you out ...
by magicrat
Sun Jun 14, 2020 7:07 am
Forum: Investing - Theory, News & General
Topic: Does Asset Location Make Sense?
Replies: 5
Views: 589

Re: Does Asset Location Make Sense?

My wife and I have 6 accounts and 9 total holding across the accounts. All rebalancing is done in my 401k. How would having 18 holding and having to touch 6 accounts to rebalance be simpler? It would be much more complex, harder to track, and harder to manage. Account capacity is irrelevant to this ...
by magicrat
Fri Jun 12, 2020 5:47 am
Forum: Investing - Theory, News & General
Topic: Confusion about the 4% rule
Replies: 91
Views: 4556

Re: Confusion about the 4% rule

well, the part that is confusing is this - if I had used the 4% rule say on Feb 15 to retire, then I would've used the current portfolio value at the time. According to a lot of material I have read the 4% rule pretty much works for a 30 year time frame. However, at the low point if I started and u...
by magicrat
Tue Jun 09, 2020 10:57 am
Forum: Personal Investments
Topic: Switching Jobs - Already maxed 401k
Replies: 42
Views: 2668

Re: Switching Jobs - Already maxed 401k

401k and IRA contribution limits per year are per the individual, not the employer. So, your instincts are spot on. You do not want to overpay by restarting with your new employer. It will be caught unhappily at tax time. You'll have to start with them next year. Another thing: watch your social se...
by magicrat
Sat Jun 06, 2020 7:31 am
Forum: Personal Consumer Issues
Topic: Struggling on Purchasing the Right Car
Replies: 54
Views: 4013

Re: Struggling on Purchasing the Right Car

If you want a basic Honda buy new, especially if you plan to keep it for a long time. Also suggest looking at the Fit, which has far more usable space than the civic
by magicrat
Fri Jun 05, 2020 2:31 pm
Forum: Personal Investments
Topic: Making additional contributions to a backdoor Roth IRA
Replies: 4
Views: 153

Re: Making additional contributions to a backdoor Roth IRA

A conversion is not a contribution. How much have you contributed to all IRAs this year?
by magicrat
Thu Jun 04, 2020 9:41 pm
Forum: Personal Investments
Topic: Rebalancing a Taxable account?
Replies: 4
Views: 527

Re: Rebalancing a Taxable account?

I see two options 1) pay capital gains to rebalance 2) develop the wherewithal to manage AA across multiple accounts. Not only will 2) be more tax efficient, it will be simpler as you will have fewer funds and take less effort to rebalance. My wife and I have 6 accounts, and 9 funds total across all...
by magicrat
Thu Jun 04, 2020 9:29 pm
Forum: Investing - Theory, News & General
Topic: Yet another yield question
Replies: 50
Views: 2837

Re: Yet another yield question

Assuming this is a taxable portfolio, if any of the additional dividends (vs a total market fund) are non-qualified then you are introducing additional tax drag (assuming same total return)
by magicrat
Thu Jun 04, 2020 12:51 pm
Forum: Investing - Theory, News & General
Topic: How to Track Investment Profit?
Replies: 10
Views: 634

Re: How to Track Investment Profit?

Excel, but apparently that is outside of your solution set. Alternately, you could keep tally in a notebook.
by magicrat
Thu Jun 04, 2020 12:41 pm
Forum: Personal Finance (Not Investing)
Topic: Having an agreement with your children?
Replies: 28
Views: 1709

Re: Having an agreement with your children?

If you think you are going to run out of money, yes you should ask your children well in advance if they will be willing and able to support you. Though better to have a plan where you don't run out of money.
by magicrat
Thu Jun 04, 2020 12:39 pm
Forum: Personal Investments
Topic: DCA frequency
Replies: 24
Views: 1076

Re: DCA frequency

99% today, 1% tomorrow.
by magicrat
Tue Jun 02, 2020 12:48 pm
Forum: Personal Investments
Topic: Maxed out retirement / tax deferred accounts. Now what?
Replies: 10
Views: 836

Re: Maxed out retirement / tax deferred accounts. Now what?

You should first decide your overall asset allocation, and then implement that efficiently across accounts. Avoid thinking of each account as different.

Definitely no TIPS in taxable
by magicrat
Sat May 30, 2020 7:46 am
Forum: Personal Investments
Topic: Out of market now and need advice on re-entering
Replies: 107
Views: 10240

Re: Out of market now and need advice on re-entering

Why are you out of the market?
by magicrat
Fri May 29, 2020 9:55 pm
Forum: Personal Consumer Issues
Topic: Lifelong New Yorker relocating to Philly for FIRE?
Replies: 39
Views: 3208

Re: Lifelong New Yorker relocating to Philly for FIRE?

The last thing we need is more New Yorkers moving here :happy
by magicrat
Fri May 29, 2020 12:31 pm
Forum: Investing - Theory, News & General
Topic: Economy and The Markets
Replies: 36
Views: 2264

Re: Economy and The Markets

JonnyB wrote:
Fri May 29, 2020 12:09 pm
magicrat wrote:
Fri May 29, 2020 11:07 am
Uncertainty means higher expected returns, not lower.
Uncertainty means expected returns are uncertain.
Expected returns are always uncertain. Uncertainty is a measure of risk. Higher risk, higher expected return.
by magicrat
Fri May 29, 2020 11:07 am
Forum: Investing - Theory, News & General
Topic: Economy and The Markets
Replies: 36
Views: 2264

Re: Economy and The Markets

Uncertainty means higher expected returns, not lower.
by magicrat
Fri May 29, 2020 7:55 am
Forum: Personal Finance (Not Investing)
Topic: What does your budget spreadsheet look like?
Replies: 36
Views: 2476

Re: What does your budget spreadsheet look like?

Here are my categories (each macro category numbered - items below are sub categories: 1. Home Mortgage Basic Home (non-food consumables, small appliances, etc) Home Services (cleaning, small repairs) Utilities 2. Food Groceries Restaurants Takeout & On-the-Go 3. Entertainment General Amusement Read...
by magicrat
Thu May 28, 2020 9:05 pm
Forum: Investing - Theory, News & General
Topic: Does reinvesting TSM dividends artificially inflate one’s position in growth stocks?
Replies: 24
Views: 1410

Re: Does reinvesting TSM dividends artificially inflate one’s position in growth stocks?

Would you prefer to reinvest back into those dividend paying companies that have told you they have no use for cash?
by magicrat
Thu May 28, 2020 8:55 pm
Forum: Personal Investments
Topic: Lump sum vs Dollar Cost Averaging during volatile market
Replies: 36
Views: 1838

Re: Lump sum vs Dollar Cost Averaging during volatile market

If you are set on DCA then I suggest 99% tomorrow and 1% Monday.
by magicrat
Thu May 28, 2020 1:19 pm
Forum: Personal Investments
Topic: need help cleaning up my 401k
Replies: 6
Views: 426

Re: need help cleaning up my 401k

This is entirely a market timing question. If you have established your plan, implement it.
by magicrat
Wed May 27, 2020 12:33 pm
Forum: Personal Finance (Not Investing)
Topic: Early Retirement Audition; House Budget; Cash Sub-Allocation Queries
Replies: 16
Views: 1072

Re: Early Retirement Audition; House Budget; Cash Sub-Allocation Queries

You are doing some unnecessary mental gymnastics. First, try to simplify your thinking. Cash sub allocations are irrelevant - the cash is part of your portfolio. Limiting your spending to the dividends and interest from your taxable portfolio is arbitrary. You have $4,575k. You will have some fixed ...
by magicrat
Wed May 27, 2020 8:58 am
Forum: Investing - Theory, News & General
Topic: This article is scaring me. [Roubini predicting depression]
Replies: 109
Views: 12196

Re: This article is scaring me.

Issue 7: What backlash against democracy? Rather, I see people using their right to vote to support populist candidates, whom the author evidently doesn't support. I won't comment on the impact of populist politicians on the economy. However, this represents an enthusiastic embrace of the democrati...
by magicrat
Mon May 25, 2020 8:12 pm
Forum: Non-US Investing
Topic: ESG Investing Possible Downside?
Replies: 7
Views: 593

Re: ESG Investing Possible Downside?

What is included in “the such”? Lots of companies in their top 10 holdings that would fail many ethics screens.
by magicrat
Mon May 25, 2020 9:23 am
Forum: Personal Investments
Topic: Timing the Market
Replies: 8
Views: 717

Re: Timing the Market

In the same post you say you realize that market timing is futile, yet ask if you should time the market. Why the dissonance?
by magicrat
Sat May 23, 2020 1:46 pm
Forum: Personal Investments
Topic: Thinking of selling some SP 500 to buy more Wells Fargo
Replies: 75
Views: 5459

Re: Thinking of selling some SP 500 to buy more Wells Fargo

Could you post a link to your valuation model? Would be easier to give feedback if we can see your numbers and assumptions.