Search found 6401 matches

by David Jay
Mon Apr 22, 2019 7:36 am
Forum: Personal Investments
Topic: Portfolio Question...
Replies: 14
Views: 1127

Re: Portfolio Question...

Welcome to the forum. Let me kick this off with a couple of thoughts: In #1, you say that it is difficult to think of your portfolio as a single, integrated whole. Then in your second question you ask if it is OK to go 100% stock funds in taxable. You have answered your own question about the reaso...
by David Jay
Mon Apr 22, 2019 7:31 am
Forum: Personal Investments
Topic: Portfolio Question...
Replies: 14
Views: 1127

Re: Portfolio Question...

An account with decent returns and can’t go down is always nice! So would it be best to get all my bonds into tsp in g fund and then focus the other accounts into equities? “Mega” may have his own comment, but yes . This is why we look at the entire portfolio in total. Bonds should be in tax-deferr...
by David Jay
Sun Apr 21, 2019 9:03 pm
Forum: Personal Investments
Topic: Portfolio Question...
Replies: 14
Views: 1127

Re: Portfolio Question...

Welcome to the forum. Let me kick this off with a couple of thoughts: In #1, you say that it is difficult to think of your portfolio as a single, integrated whole. Then in your second question you ask if it is OK to go 100% stock funds in taxable. You have answered your own question about the reason...
by David Jay
Sat Apr 20, 2019 10:04 pm
Forum: Personal Finance (Not Investing)
Topic: Roth conversions, taxes, and social security
Replies: 22
Views: 2364

Re: Roth conversions, taxes, and social security

... does the money need to go into a taxable account? Money does not need to go through a taxable account, the term for direct process from tIRA is termed a “Roth Conversion”. Of course, all converted dollars are shown as income for the year of conversion. Many people watch their income and “fill u...
by David Jay
Sat Apr 20, 2019 9:16 pm
Forum: Personal Finance (Not Investing)
Topic: Cashing out of COMPLIFE question
Replies: 3
Views: 315

Re: Cashing out of COMPLIFE question

You will have a tax liability on the difference between the basis (nominally the amount you have paid) and the cash value.

NWM can tell you your cost basis and your cash value.
by David Jay
Sat Apr 20, 2019 2:27 pm
Forum: Investing - Theory, News & General
Topic: American Funds vs Vanguard
Replies: 69
Views: 4066

Re: American Funds vs Vanguard

For the record, American Funds’s front end load is the same as pretty much every other fund family. Starts at 5.75% and goes down to zero once you have $1m invested. I think you may be operating from past history, I remember paying those loads back in the 80s and 90s. These days most of the large (...
by David Jay
Fri Apr 19, 2019 7:26 pm
Forum: Personal Finance (Not Investing)
Topic: What is the Magic Formula for when One can RETIRE ?
Replies: 24
Views: 3473

Re: What is the Magic Formula for when One can RETIRE ?

Unfortunately, I SUCK at stocks.. I have my entire life. hopefully, I can find some help on here and can work on it. Fortunately there are a bunch of ex-stock pickers on this forum. We will show you how to “own the market” (eliminating single-stock risk - no more sucking at stock picking) and set y...
by David Jay
Fri Apr 19, 2019 6:30 pm
Forum: Personal Investments
Topic: Can we retire yet? And other related questions...
Replies: 29
Views: 2902

Re: Can we retire yet? And other related questions...

To continue, if there is a wide disparity in earnings for a married couple, it is almost always optimum financially for the lower earner to file early (62) and the high earner to delay to age 70. The key is that the surviving spouse gets the larger of the two benefits, so the survivor gets the benef...
by David Jay
Fri Apr 19, 2019 6:19 pm
Forum: Personal Investments
Topic: Can we retire yet? And other related questions...
Replies: 29
Views: 2902

Re: Can we retire yet? And other related questions...

Yes, you can retire. You have almost double what you need to pull 65,000 a year. Regarding #4, I recommend “opensocialsecurity.com”, this is a SS simulator put together by a forum member who is a CPA. It will recommend an optimum filing date based on a naive (no special health conditions) life expec...
by David Jay
Fri Apr 19, 2019 3:57 pm
Forum: Personal Investments
Topic: Fire my financial advisor now or later? (recent windfall help needed)
Replies: 48
Views: 3990

Re: Fire my financial advisor now or later? (recent windfall help needed)

It appears that the ER on the CIO fund is .54 If this is the product: https://antiochianprodsa.blob.core.wind ... MF&ETF.pdf

Note on page 3, the strategy performance compared to sector is +.24 before fees, -.30 after fees.
by David Jay
Fri Apr 19, 2019 12:59 pm
Forum: Personal Investments
Topic: Rollover 401k to new employer vs roll into IRA
Replies: 5
Views: 400

Re: Rollover 401k to new employer vs roll into IRA

1. Have you seen your new employer’s plan - funds, ERs, etc? That Is an important part of the decision. 2. You do not need to do anything immediately, you can leave it where it is for now and take action after you are “settled in” to the new job. 3. Will your previous employer let you rollover the R...
by David Jay
Fri Apr 19, 2019 12:25 pm
Forum: Personal Investments
Topic: First time posting - Portfolio Feedback
Replies: 9
Views: 836

Re: First time posting - Portfolio Feedback

Thanks teamDE. I do see there being opportunity to simplify. I'm a little confused about Put all bonds into your pretax 401ks, they're not optimal in your Roths because you want your most growth potential, equities, there. I understand bonds shouldn't be in a taxable account, which I'm already avoi...
by David Jay
Thu Apr 18, 2019 8:06 pm
Forum: Investing - Theory, News & General
Topic: This could be the biggest risk that retirees face?
Replies: 117
Views: 8164

Re: This could be the biggest risk that retirees face?

CULater wrote:
Thu Apr 18, 2019 7:56 pm
How best to manage this tail risk for the Average Joe and Josephine?
How about just setting an SWR that is under 4%?
by David Jay
Thu Apr 18, 2019 8:01 pm
Forum: Personal Investments
Topic: First time posting - Portfolio Feedback
Replies: 9
Views: 836

Re: First time posting - Portfolio Feedback

Welcome to the forum! 30/31 year olds with a $380,000 portfolio - you two are off to a great start. Questions: 1. AA: Does AA seem reasonable given my age and situation? Taking enough risk, too much, too little? 80/20 is fine if (big if) you can stand up to a 40% drop in your portfolio balance witho...
by David Jay
Thu Apr 18, 2019 5:45 pm
Forum: Non-US Investing
Topic: What are incompatible index definitions
Replies: 1
Views: 225

Re: What are incompatible index definitions

There are multiple companies (S&P, MSCI, CRSP, etc.) who publish indexes. Their definitions are not identical because each publisher has their own concepts, especially at the margins. For instance, one publisher may include China in a “developed” market index and another may not include it, still ca...
by David Jay
Thu Apr 18, 2019 3:39 pm
Forum: Investing - Theory, News & General
Topic: American Funds vs Vanguard
Replies: 69
Views: 4066

Re: American Funds vs Vanguard

Does that really sound favorable to you: “If someone held a gun to my head and said I couldn’t have my index funds, American Funds is one of the least-bad active fund providers.

There is no way that I would ever pay a front-load. Period. End of Discussion.
by David Jay
Thu Apr 18, 2019 11:35 am
Forum: Personal Investments
Topic: Locked into [American Funds] - best choices?
Replies: 14
Views: 850

Re: Locked into AF - best choices?

Neither Fidelity nor Schwab charge for mutual fund sales, so you could transfer your assets in kind to either broker to avoid the AUM fee you're paying and sell commission free as desired. +1 You can turn off automatic reinvestment of dividends. Invest them in the index fund(s) of your choosing. + 1.
by David Jay
Wed Apr 17, 2019 3:57 pm
Forum: Investing - Theory, News & General
Topic: U.S. Bank/Bancorp 100 free trades per year
Replies: 19
Views: 808

Re: U.S. Bank/Bancorp 100 free trades per year

Why do you need 100 free trades a year?

What kind of balance is required for platinum checking (i.e. what is the opportunity cost)?
by David Jay
Wed Apr 17, 2019 9:46 am
Forum: Investing - Theory, News & General
Topic: Wade Pfau & Reverse Mortgages
Replies: 6
Views: 559

Re: Wade Pfau & Reverse Mortgages

The problem with this plan is the decades of accrued interest (interest continues to accrue until you leave the home) from the reverse mortgage borrowing. A 4.5% withdrawal rate for 8 years before start of SS is perfectly acceptable. I have an 7% withdrawal rate for the next 5 years. There is confus...
by David Jay
Wed Apr 17, 2019 9:35 am
Forum: Personal Investments
Topic: 401K Profit Sharing
Replies: 7
Views: 464

Re: 401K Profit Sharing

Thank you all. I max my Roth IRA and 401K annually Re: savings rate, I’m saving approximately 48% of my gross pay annually. Is this appropriate or should I try and increase? This is with me going out on weekends and spending on dining/cocktails once or twice/week - trying to strike the balance of e...
by David Jay
Wed Apr 17, 2019 7:56 am
Forum: Personal Finance (Not Investing)
Topic: $25K Whole Life policy for daughter - $130/year - keep it?
Replies: 66
Views: 8515

Re: $25K Whole Life policy for daughter - $130/year - keep it?

(Or just give it to the daughter). no No NO! Parents, don’t do that to your kids! You put them in the emotional position of “honoring” you by paying for something they don’t want or “dissing” you by dropping it. This happens way too often. The OP should keep the policy or cash it out. Don’t give it...
by David Jay
Tue Apr 16, 2019 9:18 pm
Forum: Personal Finance (Not Investing)
Topic: $25K Whole Life policy for daughter - $130/year - keep it?
Replies: 66
Views: 8515

Re: $25K Whole Life policy for daughter - $130/year - keep it?

(Or just give it to the daughter). no No NO! Parents, don’t do that to your kids! You put them in the emotional position of “honoring” you by paying for something they don’t want or “dissing” you by dropping it. This happens way too often. The OP should keep the policy or cash it out. Don’t give it...
by David Jay
Tue Apr 16, 2019 7:46 pm
Forum: Personal Investments
Topic: Question about AA for someone 10 years from retirement with no savings
Replies: 21
Views: 1016

Re: Question about AA for someone 10 years from retirement with no savings

Delay retirement until age 70, collect maximum social security at age 70. Even if you Mom chooses to retire at age 65, she does not need to file for SS when she ends employment. This is something that your Mom needs to understand and carefully evaluate. Using some of the $132,000 home sale proceeds...
by David Jay
Tue Apr 16, 2019 7:32 pm
Forum: Investing - Theory, News & General
Topic: High turnover funds in 401K?
Replies: 8
Views: 484

Re: High turnover funds in 401K?

However, high turnover funds may be trying to time the market and will have higher expenses than passive index funds. It can sometimes hard to find the ER (expense ratio) of your 401K choices (they never it put on the first page, you have to dig it out) but It is a huge determinant of performance. ...
by David Jay
Tue Apr 16, 2019 6:30 pm
Forum: Personal Investments
Topic: 401K Profit Sharing
Replies: 7
Views: 464

Re: 401K Profit Sharing

In my opinion, it would be OK to ask the person who handles HR issues if there is a “normal” time when the annual profit-sharing is declared.
by David Jay
Tue Apr 16, 2019 6:25 pm
Forum: Personal Investments
Topic: 401K Profit Sharing
Replies: 7
Views: 464

Re: 401K Profit Sharing

In my experience (as a small company employee for about 35 years), your employer is likely finishing up the books for 2018 and will decide on the profit-sharing level (if there were profits) at the next board meeting. So hang in there! I would use the 401K plan regardless of the level of profit shar...
by David Jay
Tue Apr 16, 2019 6:05 pm
Forum: Personal Investments
Topic: 401k Rollover from Wells Fargo to Vanguard IRA
Replies: 4
Views: 214

Re: 401k Rollover from Wells Fargo to Vanguard IRA

First comment: Always work with the institution who will be receiving the assets, they are the ones who have the incentive to make things go smoothly. I would call Vanguard and ask them to work with Wells Fargo to get the assets moved. Personally, I would not take the funds out and hold them myself,...
by David Jay
Tue Apr 16, 2019 5:51 pm
Forum: Investing - Theory, News & General
Topic: Lawton Study and Zeroes
Replies: 17
Views: 1544

Re: Lawton Study and Zeroes

They want the assets. They will be all things to all people to get them. Zero cost index funds - sure. Actively traded mutual funds - you bet.

But they will steer you to higher cost alternatives like Freedom Funds instead of Freedom Index funds, for instance.
by David Jay
Tue Apr 16, 2019 2:36 pm
Forum: Personal Investments
Topic: Where to hold 2-3 years of living expenses
Replies: 28
Views: 4880

Re: Where to hold 2-3 years of living expenses

pdavi21 wrote:
Sun Apr 14, 2019 7:57 pm
I suggest a short-term bond fund. They conveniently typically have a duration of 2-3 years.
+1
by David Jay
Tue Apr 16, 2019 1:19 pm
Forum: Investing - Theory, News & General
Topic: Fixed Indexed Annuities
Replies: 22
Views: 1105

Re: Fixed Indexed Annuities

Nate79 wrote:
Tue Apr 16, 2019 1:18 pm
The language that I want to use to describe these products would get me permanently banned from this site. Use your imagination.
...start with Male Bovine Excrement.
by David Jay
Tue Apr 16, 2019 1:16 pm
Forum: Investing - Theory, News & General
Topic: Fixed Indexed Annuities
Replies: 22
Views: 1105

Re: Fixed Indexed Annuities

He is lying when he says that you will get “stock-market like returns”, you will get no such thing. Here Is the list of issues for the annuity salesman: 1. What index does the annuity track? (Typically the SP500 Price index, not the SP500 Total Return, this costs you nearly 2% per year in dividends)...
by David Jay
Tue Apr 16, 2019 10:07 am
Forum: Personal Investments
Topic: How often do you check up on your investments?
Replies: 35
Views: 2113

Re: How often do you check up on your investments?

Some of us are “data” people, I check almost daily. But I don’t take any action, I just want to know. The thing that helped me most was a written IPS (investment policy statement). When I am tempted to take action, I go back and re-read what I have written. [edit] it also helps that I made my first ...
by David Jay
Tue Apr 16, 2019 10:02 am
Forum: Investing - Theory, News & General
Topic: High turnover funds in 401K?
Replies: 8
Views: 484

Re: High turnover funds in 401K?

However, high turnover funds may be trying to time the market and will have higher expenses than passive index funds. It can sometimes hard to find the ER (expense ratio) of your 401K choices (they never it put on the first page, you have to dig it out) but It is a huge determinant of performance. ...
by David Jay
Tue Apr 16, 2019 9:47 am
Forum: Personal Finance (Not Investing)
Topic: How would you handle work situation?
Replies: 16
Views: 1370

Re: How would you handle work situation?

If you can give a “third party” explanation for why others have left, that allows you to tell him what is going on without creating a confrontation with you: “I heard from a mutual friend that [junior co-worker] left because he/she did not see a growth path due to a lack of promotions within this gr...
by David Jay
Mon Apr 15, 2019 10:29 pm
Forum: Personal Investments
Topic: 401k, 403b & 457b to Traditional IRA; Trustee-to-Trustee x 2
Replies: 2
Views: 160

Re: 401k, 403b & 457b to Traditional IRA; Trustee-to-Trustee x 2

Welcome to the forum!

You are correct, there is no limit on trustee-to-trustee transfers, limit is only on transfers where the money passes through the hands of the account owner.
by David Jay
Mon Apr 15, 2019 2:56 pm
Forum: Investing - Theory, News & General
Topic: High turnover funds in 401K?
Replies: 8
Views: 484

Re: High turnover funds in 401K?

You pay no taxes on 401K assets until withdrawal.
by David Jay
Mon Apr 15, 2019 12:00 pm
Forum: Investing - Theory, News & General
Topic: Help me test / align this slightly alternate take
Replies: 4
Views: 473

Re: Help me test / align this slightly alternate take

Your post reminds me of a “Hierarchy of Investor Needs" discussion last year. The article being discussed had this pyramid. https://preview.ibb.co/fUk308/Hierarchy_of_Investor_Needs.jpg The key takeaway is that one needs to focus on the things at the base of the pyramid, the upper level items are mu...
by David Jay
Mon Apr 15, 2019 8:49 am
Forum: Personal Investments
Topic: Simplifying: want to move DRIP from C'share to Schwab
Replies: 4
Views: 317

Re: Simplifying: want to move DRIP from C'share to Schwab

DRIP plans are legacy programs going back to the days when trading costs were so high that it made the re-investing of dividends too expensive to justify for the small investor. Today, virtually every low-cost brokerage offers free dividend reinvestment - just check the box. The problem is moving th...
by David Jay
Mon Apr 15, 2019 8:01 am
Forum: Personal Investments
Topic: Roth / 403b Allocation
Replies: 3
Views: 290

Re: Roth / 403b Allocation

Most here suggest that you set AA for your entire portfolio, not account-by-account. In this way you can optimize the use of each account (for instance, putting all your bonds in tax-deferred). There is a Wiki on asset placement: https://www.bogleheads.org/wiki/Tax-efficient_fund_placement If you do...
by David Jay
Sun Apr 14, 2019 7:59 pm
Forum: Personal Consumer Issues
Topic: Worry free antivirus for my parent's computer
Replies: 18
Views: 1020

Re: Worry free antivirus for my parent's computer

The biggest risk is links and attachments. They need to never click on a link or open an attachment in any email. ESPECIALLY if it is from an “important” financial relationship like their bank, the IRS, Medicare, etc. If they can internalize that one rule they can avoid most so called “phishing” att...
by David Jay
Sat Apr 13, 2019 10:14 pm
Forum: Personal Investments
Topic: Increasing Risk in Retirement
Replies: 26
Views: 2129

Re: Increasing Risk in Retirement

Another description of this concept is Kitces’ “Bond tent”, here: https://www.kitces.com/blog/managing-po ... -red-zone/
by David Jay
Sat Apr 13, 2019 2:10 pm
Forum: Personal Investments
Topic: Is the disaster scenario for stocks a reason not to invest or pull out of the market?
Replies: 94
Views: 6875

Re: Is the disaster scenario for stocks a reason not to invest or pull out of the market?

I think the behavioral finance issues are even more important than time-frame as discussed above. The “sleep at night” and “sell after drop” issues are paramount: 1. If one believes that the market is a “casino” and one has no need to take the risk (they have the necessary income streams and assets ...
by David Jay
Sat Apr 13, 2019 1:34 pm
Forum: Investing - Theory, News & General
Topic: Thoughts on this Forbes article? "Why Most Index Funds And ETFs Are Not Good Investments"
Replies: 65
Views: 9795

Re: Thoughts on this Forbes article? "Why Most Index Funds And ETFs Are Not Good Investments"

willthrill81 wrote:
Sat Apr 13, 2019 12:09 pm
I personally take the existence of such funds as positive proof that the market is not 'perfectly' efficient.
Don’t worry, I got your humor...
by David Jay
Sat Apr 13, 2019 11:57 am
Forum: Personal Investments
Topic: Opening my first Roth IRA Funds - Vanguard Target Retirement vs. Life Strategy vs. others?
Replies: 5
Views: 253

Re: Opening my first Roth IRA Funds - Vanguard Target Retirement vs. Life Strategy vs. others?

Do either of you have tax-advantaged retirement plans at your employer(s)? 401K, 403B, 457, etc? Are either of you self-employed? It seems strange that you can only contribute $3750 each if you have no other retirement plan. If you do have another retirement plan, post details of the plan offerings ...
by David Jay
Sat Apr 13, 2019 11:35 am
Forum: Investing - Theory, News & General
Topic: Thoughts on this Forbes article? "Why Most Index Funds And ETFs Are Not Good Investments"
Replies: 65
Views: 9795

Re: Thoughts on this Forbes article? "Why Most Index Funds And ETFs Are Not Good Investments"

TLDR:. Index funds only get average returns and capture 100% of every market downturn. Active managers can sell the losers. If one wants to have above average returns use a mix. "use index options for those few asset classes that are widely covered and researched and actively managed choices for al...
by David Jay
Fri Apr 12, 2019 2:04 pm
Forum: Personal Finance (Not Investing)
Topic: Giant Mistake in Roth Conversion!! Any way Out?!? Sorry for Long Post - It's Complicated
Replies: 4
Views: 807

Re: Giant Mistake in Roth Conversion!! Any way Out?!? Sorry for Long Post - It's Complicated

Welcome to the forum!

Sorry that nobody is hopping in here with good news, it is my understanding that the account balances as of 2018 determine the tax consequences so I don’t think there is anything that can be done now. It looks to me like the $59,000 will be taxed at the pro-rata percentage.
by David Jay
Fri Apr 12, 2019 10:35 am
Forum: US Chapters
Topic: Roll Call for the Retirement Class of 2019!
Replies: 230
Views: 28317

Re: Roll Call for the Retirement Class of 2019!

Something I put together for my Virtual Bogleheads presentation - I collated the retirement ages from the 2017 and 2018 Roll Call threads. This isn't statistically valid (self-selection bias) but the numbers were interesting to me: https://i.ibb.co/ng7fVk7/Retirement-Age.jpg BTW- the full presentati...
by David Jay
Fri Apr 12, 2019 9:45 am
Forum: Personal Finance (Not Investing)
Topic: Am I able to do a Mega Backdoor ROTH?
Replies: 9
Views: 731

Re: Am I able to do a Mega Backdoor ROTH?

If you discuss with Your company admin or Voya, do not use the term “Mega-backdoor”, that is a BH term.

You want to know if you can do a rollover of the Roth portion of your 401K into your personal Roth account.
by David Jay
Thu Apr 11, 2019 3:02 pm
Forum: Investing - Theory, News & General
Topic: Active vs Passive Fund management
Replies: 18
Views: 1340

Re: Active vs Passive Fund management

I just did a quick skim of the paper, but it appears that the author didn’t control for comparing funds in the same risk/investment categories. In other words, it didn’t matter for the analysis whether a fund was small cap growth versus large cap value. All that mattered was the expense ratio. If I...