Search found 1894 matches

by dmcmahon
Tue Nov 12, 2019 1:36 am
Forum: Personal Investments
Topic: TIAA's real estate fund
Replies: 10
Views: 647

Re: TIAA's real estate fund

Yes I vaguely recall that, however the materials on their web site doesn’t exactly make that clear.
by dmcmahon
Tue Nov 12, 2019 12:57 am
Forum: Personal Investments
Topic: TIAA's real estate fund
Replies: 10
Views: 647

TIAA's real estate fund

Is there any investment remotely equivalent to this fund? Assuming the answer is no, what do you need to do to gain access to it? If the answer to that is, open a Variable Annuity with TIAA, opinions on that? I've been struggling for some time to fill an allocation to real estate in my portfolio. RE...
by dmcmahon
Mon Nov 11, 2019 12:19 pm
Forum: Investing - Theory, News & General
Topic: "Retirees' Year-End Tax-Planning Guide"
Replies: 8
Views: 1358

Re: "Retirees' Year-End Tax-Planning Guide"

Good article, I’d ask Ms.Benz to think about one more idea re. charitable giving: using a donor-advised fund to lump contributions in order to get over the higher standard deduction.
by dmcmahon
Sun Nov 10, 2019 7:30 pm
Forum: Investing - Theory, News & General
Topic: Why no one created a etf of dividend free stocks
Replies: 35
Views: 3211

Re: Why no one created a etf of dividend free stocks

Could an ETF be structured where they own dividend paying companies but don't pay a dividend? No, that's against the law. ETFs and mutual funds in the US are required to distribute dividends at least once a year. Berkshire isn't an ETF or a mutual fund so they can do whatever they want. Yes they ca...
by dmcmahon
Fri Nov 08, 2019 12:20 am
Forum: Investing - Theory, News & General
Topic: That's enough for me in 2019
Replies: 817
Views: 99692

Re: That's enough for me in 2019

Im out of short Ultras @193-00 this morning. That's a nice $35K gain (but could have been over $60K if you waited a bit longer...) I'm also out of my bond short and back to hibernation mode. New allocation (+change since mid-August): 22% precious metals (flat) 13% crude oil and oil majors (flat) 10...
by dmcmahon
Fri Nov 08, 2019 12:03 am
Forum: Investing - Theory, News & General
Topic: Ray Dalio’s latest fearmongering round
Replies: 171
Views: 23483

Re: Ray Dalio’s latest fearmongering round

In general there seems to be something terribly wrong with our economic models. Huge inflation has been expected for quite some time, and levels of government debt in developed economies is far higher than anyone would have thought safe 20 years ago. Yet here we sit in a world with central banks de...
by dmcmahon
Tue Nov 05, 2019 4:33 pm
Forum: Investing - Theory, News & General
Topic: WSJ article "Avoid These Costly Roth-Conversion Mistakes"
Replies: 13
Views: 2139

Re: WSJ article "Avoid These Costly Roth-Conversion Mistakes"

What if you do the conversion within the 401k itself? That is, to a Roth 401k if your plan has such a thing? Does this avoid the pro rate rule?
by dmcmahon
Fri Oct 18, 2019 7:00 pm
Forum: Investing - Theory, News & General
Topic: Investing for the "great sag" - Dalio
Replies: 65
Views: 10322

Re: Investing for the "great sag" - Dalio

Well if returns are going to be flat for a long time selling covered out of the money calls or selling well under the market puts might be ways to exploit it. My crystal ball is, as usual, too cloudy for such actions, so I’ll just project lower average returns and plan to save more. To some extent a...
by dmcmahon
Tue Oct 01, 2019 6:49 pm
Forum: Investing - Theory, News & General
Topic: Know when to hold them and when to fold them......
Replies: 148
Views: 13794

Re: Know when to hold them and when to fold them......

Have you changed or rethought your international exposure lately and what did you do if anything? I haven't rebalanced into international in quite some time. I reinvest the occasional international fund dividend or not, but my percentage of international has drifted lower. The main reason is that G...
by dmcmahon
Tue Aug 13, 2019 9:57 pm
Forum: Investing - Theory, News & General
Topic: Where are invested dollars coming from?
Replies: 5
Views: 643

Re: Where are invested dollars coming from?

It needn’t come from anywhere. If you and I agree to exchange some shares of XYZ Corp. at a higher price, then no net dollars have flowed into it and yet every share is repriced upwards
by dmcmahon
Tue Aug 13, 2019 9:55 pm
Forum: Investing - Theory, News & General
Topic: GMO paper on under-performance of value
Replies: 5
Views: 588

Re: GMO paper on under-performance of value

Aren’t financials heavily weighted in Value now? Things change - their business models are under pressure from technology, from shifts in consumer preferences towards the Boglehead model, and declining interest rates.
by dmcmahon
Sat Jul 13, 2019 12:14 am
Forum: Personal Investments
Topic: What asset class is gold?
Replies: 41
Views: 3108

Re: What asset class is gold?

Watty wrote:
Fri Jul 12, 2019 9:10 pm
Not everything is a stock or a bond. You can easily list a dozen or more asset classes like residential real estate, commercial real estate, farm land, commodities, oil wells, collectables, cash, etc
I have a general class in my AA called “hard assets”.
by dmcmahon
Fri Jul 12, 2019 10:15 pm
Forum: Personal Finance (Not Investing)
Topic: Has anyone inherited a obligation/burden/responsibility?
Replies: 76
Views: 8356

Re: Has anyone inherited a obligation/burden/responsibility?

My mother died in 2008 nearly $400k in debt; about $300k upside down on her home, $60k in cc debt $40k in unpaid Federal taxes. It took a while but I was able to clean it up, working with her home lender, told the ccs they wouldn't get paid and the Fed debt was so old that it actually expired while...
by dmcmahon
Fri Jul 12, 2019 9:58 pm
Forum: Investing - Theory, News & General
Topic: Retired: Do you withdraw from investments or cash ?
Replies: 74
Views: 9587

Re: Retired: Do you withdraw from investments or cash ?

I use monthly and quarterly dividends from my main mutual funds, taken as cash, to pay my expenses. The underlying principal remains intact, if not grows (from excess dividends and cap gain distributions). I keep some cash around to cover the lumpier expenses. This is my plan exactly. I’ll have a c...
by dmcmahon
Wed Jul 03, 2019 8:23 pm
Forum: Investing - Theory, News & General
Topic: That's enough for me in 2019
Replies: 817
Views: 99692

Re: That's enough for me in 2019

Out of most of the QQQ short at ~179 today. Added a small position (8%) to int'l equities. Used the rally in 5-year Treasuries (to under 2.2% yield) to hedge duration on my investment grade bond fund. New allocation: 10% gold 5% silver 15% crude oil and oil majors 10% long term bonds -8% US equitie...
by dmcmahon
Fri Jun 28, 2019 7:52 pm
Forum: Investing - Theory, News & General
Topic: Excluding International All Together?
Replies: 82
Views: 9858

Re: Excluding International All Together?

I targeted 1/3 of my equity investments for international. Because of inertia this has drifted down to about 1/4 now. I keep thinking eventually i’ll be right and it will begin to outperform the US, so I stick with it. The strong dollar has been cited on this thread, but another factor to consider i...
by dmcmahon
Thu Jun 06, 2019 9:33 pm
Forum: Investing - Theory, News & General
Topic: Why does the stock market grow faster than the economy?
Replies: 28
Views: 4544

Re: Why does the stock market grow faster than the economy?

Stock returns aren't unsustainable. Total earnings and market cap should grow with nominal GDP, in a valuation neutral world. This has not been the case because valuation (market cap relative to earnings) ncreased over the decades reflecting lower long term rates not versus say in 1980s. The for wa...
by dmcmahon
Thu Jun 06, 2019 12:15 am
Forum: Investing - Theory, News & General
Topic: That's enough for me in 2019
Replies: 817
Views: 99692

Re: That's enough for me in 2019

I’ve feared a return of the 1970s bear for the past 20 years. The problem is that it hasn’t seemed actionable. Also, it hasn’t happened yet, so I’m glad I used a BH style investment strategy instead of playing that hunch. Unless you can stockpile physical commodities, you have the constant tax drag ...
by dmcmahon
Sat May 18, 2019 7:15 am
Forum: Investing - Theory, News & General
Topic: Why does the stock market grow faster than the economy?
Replies: 28
Views: 4544

Re: Why does the stock market grow faster than the economy?

One thing always missed out of these analyses is, what fraction of overall economic activity is capitalized in the equity markets. To the extent that you transition from a largely privately held economy to a largely public ally traded one, you could see the market cap grow faster than the economy. T...
by dmcmahon
Fri May 17, 2019 6:52 am
Forum: Investing - Theory, News & General
Topic: Help me design a 401k fund menu
Replies: 36
Views: 2235

Re: Help me design a 401k fund menu

I’m trustee of our companies retirement plan. We are discussing a change to a plan that would leave us without an investment advisor. To satisfy ERISA requirements , I need to offer a broad range of investment choices. We are thinking all vanguard index funds would work. Eliminating active managed ...
by dmcmahon
Sun Apr 07, 2019 9:51 pm
Forum: Investing - Theory, News & General
Topic: New York Times--A Price War Has Driven Fund Fees to Zero. They May Be Set to Drop Further.
Replies: 10
Views: 2928

Re: New York Times--A Price War Has Driven Fund Fees to Zero. They May Be Set to Drop Further.

I would be suspicious if anyone I was doing business with wasn’t charging something. Vanguard has to pay its employees and pay for offices, computers, and everything else. I sure want them to stay in business. I don’t begrudge them their fees.
by dmcmahon
Thu Apr 04, 2019 11:29 am
Forum: Investing - Theory, News & General
Topic: Vanguard Announces Plans to Launch Commodities Fund
Replies: 195
Views: 23768

Re: Vanguard Announces Plans to Launch Commodities Fund

Agreed, it's good to have access to this as an asset class. In a repeat of the 1970s economy this kind of uncorrelated asset might help. I feel the same way about real estate as an asset class, and it's too bad there isn't any pure play on that. REIT funds tend to blend in lenders and other financia...
by dmcmahon
Wed Apr 03, 2019 9:14 pm
Forum: Investing - Theory, News & General
Topic: Are annuities the best way to fund one's retirement?
Replies: 190
Views: 11215

Re: Are annuities the best way to fund one's retirement?

There is no free lunch. One can not transfer risk without accepting lower returns. This is true, however there is the risk of outliving one's money, and an SPIA can pool that risk away, something you really can't do on your own. Statistically, sure, you're better off without the annuity. But then a...
by dmcmahon
Wed Apr 03, 2019 9:10 pm
Forum: Investing - Theory, News & General
Topic: That's enough for me in 2019
Replies: 817
Views: 99692

Re: That's enough for me in 2019

Bump just to keep it on the first page.
by dmcmahon
Mon Apr 01, 2019 4:34 pm
Forum: Investing - Theory, News & General
Topic: Larry Swedroe: Performance Of State Pension Plans
Replies: 46
Views: 5319

Re: Larry Swedroe: Performance Of State Pension Plans

We've seen in the past that bondholders are put at the back of the line when pensions are on the line. Knowing this makes me leery of using muni bonds in my own personal asset allocation, even though from a tax perspective they make sense. Others here seem more sanguine about munis.
by dmcmahon
Sun Mar 31, 2019 6:14 pm
Forum: Personal Finance (Not Investing)
Topic: How often do you check your net worth?
Replies: 257
Views: 16799

Re: How often do you check your net worth?

Approximately twice a year. I'm almost forced to know it at tax time as I comb through all my statements. After a period when there's been a big market move up or down I will generally go through my assets to see if I ought to rebalance anything; that seems to happen at least once a year.
by dmcmahon
Sat Mar 30, 2019 2:18 am
Forum: Investing - Theory, News & General
Topic: Does a Roth IRA Solve the "Taxflation" Problem?
Replies: 18
Views: 1953

Re: Does a Roth IRA Solve the "Taxflation" Problem?

Due to what is sometimes called "taxflation" or the "inflation tax," the portion of the capital gain from stocks or the interest from bonds that is due purely to inflation is taxed as though it were a real gain. For example, if your stock or mutual fund goes from $10/share to $100/share, you recogn...
by dmcmahon
Fri Mar 29, 2019 10:29 pm
Forum: Investing - Theory, News & General
Topic: That's enough for me in 2019
Replies: 817
Views: 99692

Re: That's enough for me in 2019

Yes, but with much more risk. TIPS got you 4% real with no risk. Fully taxable though, including the inflation adjustments. I backed up the truck for the 10-year, but I just didn’t have enough tax-deferred space. It was a very sad day when they matured. I still haven’t fully redeployed the proceeds...
by dmcmahon
Fri Mar 29, 2019 10:16 am
Forum: Investing - Theory, News & General
Topic: That's enough for me in 2019
Replies: 817
Views: 99692

Re: That's enough for me in 2019

No. What I regret is not putting every penny I had into 30 year TIPS paying almost 4% real. That was the buy of a lifetime. Wow, I'd love to be in something like that now, but haven't stocks significantly outperformed? Yes, but with much more risk. TIPS got you 4% real with no risk. Fully taxable t...
by dmcmahon
Fri Mar 29, 2019 12:39 am
Forum: Investing - Theory, News & General
Topic: That's enough for me in 2019
Replies: 817
Views: 99692

Re: That's enough for me in 2019

No. What I regret is not putting every penny I had into 30 year TIPS paying almost 4% real. That was the buy of a lifetime. Wow, I'd love to be in something like that now, but haven't stocks significantly outperformed? Yes, but with much more risk. TIPS got you 4% real with no risk. Fully taxable t...
by dmcmahon
Sun Mar 24, 2019 8:36 pm
Forum: Investing - Theory, News & General
Topic: Negative Bond Yields?
Replies: 30
Views: 3286

Re: Negative Bond Yields?

https://www.schwab.com/resource-center/insights/content/is-us-dollar-nearing-peak?cmp=em-QYB Japan has slightly negative 10 year rates, the other countries you mentioned have negative rates at 2 years but not at 10 years. Large institutional and corporate investors may be stuck taking negative rates...
by dmcmahon
Sun Mar 24, 2019 7:48 pm
Forum: Investing - Theory, News & General
Topic: That's enough for me in 2019
Replies: 817
Views: 99692

Re: That's enough for me in 2019

gmaynardkrebs wrote:
Sun Mar 24, 2019 12:23 am
I still don’t view 2008 as a crash, but merely a temporary respite from the absurd valuations of the immediately preceding years.
Well it sure as heck felt like a crash! And we finally got bear market P/E valuations at the bottom of it, the ones I never saw back in the 2000-2001 crash.
by dmcmahon
Sun Mar 24, 2019 7:42 pm
Forum: Investing - Theory, News & General
Topic: That's enough for me in 2019
Replies: 817
Views: 99692

Re: That's enough for me in 2019

While not on the chart, this was primarily due to P/E expansion. As I recall you’re correct, but a big part of that long 1970s bear was P/E contraction that over-corrected from the nifty fifty levels to single-digit lows typical of bear market bottoms. The 1980s rebound that continued into the 1990...
by dmcmahon
Fri Mar 22, 2019 10:53 am
Forum: Investing - Theory, News & General
Topic: 10 Year/3 Month Treasuries Inversion
Replies: 100
Views: 9143

Re: 10 Year/3 Month Treasuries Inversion

And once the ball gets rolling downhill and the massive corporate debt bubble is popped, yikes. Well one action that I personally have taken is to avoid taking any credit risk in bonds. So I don't own any of those lower-quality corporates. If interest rates are headed down to zero or below, exactly...
by dmcmahon
Fri Mar 22, 2019 10:46 am
Forum: Investing - Theory, News & General
Topic: 10 Year/3 Month Treasuries Inversion
Replies: 100
Views: 9143

Re: 10 Year/3 Month Treasuries Inversion

In general, do little with allocation. Stock prices already price recession risk better than you do. Lower rates probably justifies a lower allocation to bonds. People who are buying bonds yielding less than 0 don't agree with you. Why do you think they're buying them? Because they like losing mone...
by dmcmahon
Wed Mar 20, 2019 3:08 pm
Forum: Investing - Theory, News & General
Topic: That's enough for me in 2019
Replies: 817
Views: 99692

Re: That's enough for me in 2019

The real comparison should be between stocks and bonds, i.e., will the total return on the S&P 500 over the next 30 years fall short of a 30-year Treasury held to maturity? While we can argue about what historical data would suggest, the market price of European put options on the S&P 500 total ret...
by dmcmahon
Wed Mar 20, 2019 1:47 am
Forum: Investing - Theory, News & General
Topic: retirement / taxable accounts as two separate buckets
Replies: 17
Views: 1613

Re: retirement / taxable accounts as two separate buckets

Others can speak more to it but it can often make sense to have a withdrawal strategy that uses both at the same time, and also incorporates things like Roth conversions. Man, have I got questions about Roth conversions! Best for another post though, probably. :happy Re. the Roth conversions, I've ...
by dmcmahon
Wed Mar 20, 2019 1:40 am
Forum: Investing - Theory, News & General
Topic: retirement / taxable accounts as two separate buckets
Replies: 17
Views: 1613

Re: retirement / taxable accounts as two separate buckets

I have had the same thoughts as the OP but for different reasons. It has to do with the relative sizes of the two pots. Whatever their sizes are today, if tax-deferred is all in bonds, and all equities are held in taxable, then on average the tax-deferred pot is going to shrink relative to taxable. ...
by dmcmahon
Wed Mar 20, 2019 12:59 am
Forum: Investing - Theory, News & General
Topic: That's enough for me in 2019
Replies: 817
Views: 99692

Re: That's enough for me in 2019

I really like the profile of rentals in early retirement followed by annuities in late retirement, as what I'm ultimately after is an income stream. As others have pointed out, managing those rentals has a way of turning into a job. And REITs expose you to leverage you may not want. The problem wit...
by dmcmahon
Sat Feb 23, 2019 11:59 am
Forum: Personal Finance (Not Investing)
Topic: "Business Location" for a Trust?
Replies: 4
Views: 448

Re: "Business Location" for a Trust?

The trust was set up for tax purposes, at a time when the estate tax exemptions were much lower than today. It was a classic A/B trust structure, mom has a nearly-identical trust for herself. Dad's trust became irrevocable on his death. According to mom's attorney, the "situs" for the trust is likel...
by dmcmahon
Sat Feb 23, 2019 11:48 am
Forum: Personal Investments
Topic: Is anything "cheap" right now?
Replies: 49
Views: 5121

Re: Is anything "cheap" right now?

fujiters wrote:
Sat Feb 23, 2019 10:46 am
Total international. You can still buy at 2006 prices!
I second this. Unfortunately, I thought that in 2018. And 2017. And 2016.

OP: if you have space in a tax-deferred account, have you looked at intermediate-term TIPS bonds?
by dmcmahon
Mon Jan 28, 2019 3:39 pm
Forum: Personal Finance (Not Investing)
Topic: "Business Location" for a Trust?
Replies: 4
Views: 448

Re: "Business Location" for a Trust?

Thanks for the response. Sound like I need to get an attorney to sort it out. The income is indeed required to be 100% distributed. You're right about the capital gains being a potential issue - there aren't any, though, because Mom's investment strategy is 100% fixed income. However, looking ahead,...
by dmcmahon
Sun Jan 27, 2019 6:27 pm
Forum: Personal Finance (Not Investing)
Topic: "Business Location" for a Trust?
Replies: 4
Views: 448

"Business Location" for a Trust?

I'm trying to figure out if my late father's trust has an actual "business location" within the meaning of an IRS form, and if so, what that might be. My parents lived in state X years ago, at the time of the drafting of revocable trusts for both of them. Dad passed away in state X. At this time his...
by dmcmahon
Thu Jan 17, 2019 8:39 pm
Forum: Investing - Theory, News & General
Topic: John Bogle has died at age 89
Replies: 856
Views: 57285

Re: John Bogle has died at age 89

Thank you for all you've done for us small investors. You've earned your reward, rest in peace.
by dmcmahon
Fri Aug 31, 2018 9:25 pm
Forum: Personal Investments
Topic: Rolling over 401k that has after-tax contributions
Replies: 4
Views: 553

Re: Rolling over 401k that has after-tax contributions

I found at least a partial answer from the IRS: https://www.irs.gov/retirement-plans/rollovers-of-after-tax-contributions-in-retirement-plans This implies that when you take money from the 401k to the IRAs, you have to take a pro-rate share from pre-tax and after-tax monies, but you can route the fu...
by dmcmahon
Fri Aug 31, 2018 6:48 pm
Forum: Personal Investments
Topic: Rolling over 401k that has after-tax contributions
Replies: 4
Views: 553

Rolling over 401k that has after-tax contributions

I'm trying to navigate the tricky waters around 401k rollovers and I am soliciting any thoughts from this forum. I have a 401k that contains co-mingled pre-tax and after-tax contributions. I also have a Roth IRA and a Traditional IRA. The Traditional IRA is largely funded with non-deductible contrib...
by dmcmahon
Mon Apr 23, 2018 5:31 pm
Forum: Personal Finance (Not Investing)
Topic: 1098T [IRS Form 1098-T, Tuition Statement]
Replies: 10
Views: 928

Re: 1098T

Quoting directly from the instructions for filing the form (which I gather are instructions to the educational institution, not the taxpayer receiving the form): Box 1. Payments Received for Qualified Tuition and Related Expenses Enter the total amount of payments received for qualified tuition and ...
by dmcmahon
Mon Apr 23, 2018 5:17 pm
Forum: Personal Finance (Not Investing)
Topic: 1098T [IRS Form 1098-T, Tuition Statement]
Replies: 10
Views: 928

Re: 1098T

Thanks for your reply. Let me try to clarify. I will call the two educational institutions A and B. A sent a 1098T with her tuition, which was paid in 2017, clearly listed in box 2. Box 2 clearly reflects an amount paid to A by my sister. B sent a 1098T with an amount in box 1, then described it in ...
by dmcmahon
Mon Apr 23, 2018 4:55 pm
Forum: Personal Finance (Not Investing)
Topic: 1098T [IRS Form 1098-T, Tuition Statement]
Replies: 10
Views: 928

1098T [IRS Form 1098-T, Tuition Statement]

I do my sister's taxes and this year I had to deal with a form I'd never seen before. I'm hoping someone on this forum can help me. She's had to file for an extension while we try to sort this out. The form is a 1098T, which has something to do with educational expenditures. My sister is a retired t...