Search found 7121 matches

by David Jay
Thu Nov 21, 2019 9:25 am
Forum: Investing - Theory, News & General
Topic: Schwab acquiring TD Ameritrade
Replies: 37
Views: 1910

Re: Schwab acquiring TD Ameritrade

I wouldn't expect this to affect those who are at Schwab, but how does this affect customers of TD Ameritrade? For those who have gone through the acquisition of a brokerage firm as a customer, how has it affected you ? The insignia in the upper left corner of the envelope changes. I had an account...
by David Jay
Wed Nov 20, 2019 11:17 pm
Forum: Investing - Theory, News & General
Topic: Fact or fiction? Having at least some bonds/cash, to rebalance vs 100% equities.
Replies: 13
Views: 931

Re: Fact or fiction? Having at least some bonds/cash, to rebalance vs 100% equities.

There is a huge emotional benefit to being able to rebalance. I was 100% Stocks until age 58. I did the grin-and-bear-it thing in 1987, 2000 and 2007. I started rebalancing in preparation for retirement in early 2015. I hIt a rebalancing band in the minor turndown in August of 2015 and it was such a...
by David Jay
Wed Nov 20, 2019 11:01 pm
Forum: Investing - Theory, News & General
Topic: LifeStrategy tinkering - incorrect dates & "market liquidity fund"?
Replies: 7
Views: 684

Re: LifeStrategy tinkering - incorrect dates & "market liquidity fund"?

This is so strange. I don’t understand why you are so focused on LifeStrategy Moderate and why you believe that they need to operate in a way that meets your needs.
by David Jay
Wed Nov 20, 2019 8:14 pm
Forum: Personal Investments
Topic: Transferring from Northwestern mutual to Vanguard
Replies: 3
Views: 359

Re: Transferring from Northwestern mutual to Vanguard

Welcome to the forum! A few comments: 1. Definitely transfer to a long-established, low cost brokerage. Over an investing lifetime that kind of cost will mean hundreds of thousands of dollars in your portfolio. The most common recommendations here are Vanguard, Fidelity and Schwab. Each has a full l...
by David Jay
Wed Nov 20, 2019 1:46 pm
Forum: Personal Investments
Topic: Why do you have to "beat the market"?
Replies: 97
Views: 6026

Re: Why do you have to "beat the market"?

If you could juice those returns, you could save less and retire much earlier--drastically changing your life. That is a huge “IF”. As “nisiprius” noted above, the vast majority of fund managers underperform the market after expenses. So where do you go to get this outperformance? How can you know ...
by David Jay
Wed Nov 20, 2019 1:28 pm
Forum: Personal Investments
Topic: transferring an Assets under MGMT account
Replies: 6
Views: 296

Re: transferring an Assets under MGMT account

The fact that you don't know the answer to your question suggests that you have not asked your new adviser some very important questions. Such as: How do you get paid? Are you a fiduciary? WCI has a good list of questions here: https://www.whitecoatinvestor.com/questions-to-ask-when-hiring-a-financ...
by David Jay
Wed Nov 20, 2019 1:21 pm
Forum: Investing - Theory, News & General
Topic: Investing in a taxable account
Replies: 4
Views: 592

Re: Investing in a taxable account

I really like the Vanguard LifeStrategy fund family. You can pick your level of risk: 80/20, 60/40, 40/60 or 20/80 stocks/bonds. The fund (which is a fund-of-funds under the covers) takes care of all rebalancing for you so it is a “set it and forget it” investment. It is fully diversified with domes...
by David Jay
Wed Nov 20, 2019 10:59 am
Forum: Personal Investments
Topic: Rebalance now or wait until January?
Replies: 11
Views: 874

Re: Rebalance now or wait until January?

retired@50 wrote:
Wed Nov 20, 2019 10:57 am
I'd suggest choosing a re-balance anniversary, like your birthday, that way you always do it the same time every year....

Regards,
...and write it into your IPS :happy
by David Jay
Wed Nov 20, 2019 10:53 am
Forum: Personal Investments
Topic: Rebalance now or wait until January?
Replies: 11
Views: 874

Re: Rebalance now or wait until January?

Welcome to the forum! A brand new post (posted after your question) with year end distributions here: https://www.bogleheads.org/forum/viewtopic.php?f=1&t=295572 When to rebalance? If you are a long time reader then you have seen references to an IPS (Investment Policy Statement). You need one so yo...
by David Jay
Wed Nov 20, 2019 10:17 am
Forum: Investing - Theory, News & General
Topic: market went down in 2018, so why do people forget that
Replies: 48
Views: 4908

Re: market went down in 2018, so why do people forget that

I remember, I bought stock funds on December 26.
by David Jay
Wed Nov 20, 2019 9:43 am
Forum: Personal Investments
Topic: taxes for switching investments in 401k or hsa
Replies: 3
Views: 220

Re: taxes for swithching investments in 401k or hsa

Welcome to the forum! Do these "capital gains" charges build up overtime, and then get passed on once the money is removed from the 401K? From a practical standpoint, there are no “capital gains” inside a tax-advantaged account. You can do whatever you want to do whenever you want to do it with no t...
by David Jay
Wed Nov 20, 2019 9:36 am
Forum: Personal Investments
Topic: ROTH CONVERSION | make sense?
Replies: 8
Views: 927

Re: ROTH CONVERSION | make sense?

I've never heard of Pro-Rata, but I had a traditional super tiny IRA at Wisebanyon a few years ago, just enough to play around with a Robo account and I converted it to a Roth. We're talking like maybe $700 a couple years ago. So what I think I'm understanding is that this Pro-Rata won't be applica...
by David Jay
Tue Nov 19, 2019 6:21 pm
Forum: Personal Investments
Topic: I don't have 401k
Replies: 6
Views: 622

Re: I don't have 401k

I might add that tax-efficient fund selection in your taxable accounts can turn much of your gains in to long term capital gains which are taxed at a lower rate than regular income. The Wiki has a page on tax-efficient fund placement here: https://www.bogleheads.org/wiki/Tax-efficient_fund_placemen...
by David Jay
Tue Nov 19, 2019 3:14 pm
Forum: Investing - Theory, News & General
Topic: Small Cap Value Investors: Time to Back Up the Truck?
Replies: 83
Views: 6241

Re: Small Cap Value Investors: Time to Back Up the Truck?

Russell 2K breaks 1600 today [intra-day, index closed @ 1598].
by David Jay
Tue Nov 19, 2019 12:34 pm
Forum: Personal Investments
Topic: ROTH CONVERSION | make sense?
Replies: 8
Views: 927

Re: ROTH CONVERSION | make sense?

Optic:

Did you understand the point about a traditional IRA and “pro-rata”? If you have a traditional IRA and if it has pre-tax contributions then you need to understand the tax implications of a Roth conversion.

If not, go for it...
by David Jay
Tue Nov 19, 2019 12:20 pm
Forum: Personal Investments
Topic: I don't have 401k
Replies: 6
Views: 622

Re: I don't have 401k

I might add that tax-efficient fund selection in your taxable accounts can turn much of your gains in to long term capital gains which are taxed at a lower rate than regular income. The Wiki has a page on tax-efficient fund placement here:
https://www.bogleheads.org/wiki/Tax-eff ... _placement
by David Jay
Tue Nov 19, 2019 12:16 pm
Forum: Personal Investments
Topic: I don't have 401k
Replies: 6
Views: 622

Re: I don't have 401k

Welcome to the forum! You should not set up an LLC for the specific purpose of accessing a Solo 401K. The IRS has rules about sham entities and you could end up in legal jeopardy. If you have significant income from a business that you are now reporting in a Schedule C, it may be worth investigating...
by David Jay
Tue Nov 19, 2019 11:38 am
Forum: Personal Investments
Topic: Do you regret rebalancing over the last few years?
Replies: 66
Views: 5384

Re: Do you regret rebalancing over the last few years?

Since stock markets tend to trend up over very long periods of time, it seems that rebalancing would be regretful in the vast majority of instances, so it is useful to think in advance of what that might mean emotionally in terms of staying the course with rebalancing. Any regret from when rebalanc...
by David Jay
Tue Nov 19, 2019 11:28 am
Forum: Personal Investments
Topic: Confused about Rolled over IRA vs Traditional IRA
Replies: 16
Views: 926

Re: Confused about Rolled over IRA vs Traditional IRA

For clarity, a Rollover IRA is a traditional IRA, carrying a “note”, if you will, labelling the source of the funds. There is no difference in any treatment as it concerns the IRA. The “note” can make a difference if at some point in the future you want to roll those funds back into a future 401K. ...
by David Jay
Tue Nov 19, 2019 9:53 am
Forum: Personal Investments
Topic: Confused about Rolled over IRA vs Traditional IRA
Replies: 16
Views: 926

Re: Confused about Rolled over IRA vs Traditional IRA

For clarity, a Rollover IRA is a traditional IRA, carrying a “note”, if you will, labelling the source of the funds. There is no difference in any treatment as it concerns the IRA. The “note” can make a difference if at some point in the future you want to roll those funds back into a future 401K. B...
by David Jay
Mon Nov 18, 2019 11:19 pm
Forum: Personal Investments
Topic: Conservative Fidelity Portfolio recommendation needed
Replies: 2
Views: 508

Re: Conservative Fidelity Portfolio recommendation needed

That works out to about a 50/50 (stock to bond) Asset Allocation If you include the Freedom Index stock component, which is reasonably conservative. The fund selection is fine. I would not consider your international allocation (40% of stocks) to be conservative. I would recommend an allocation of 2...
by David Jay
Mon Nov 18, 2019 8:25 pm
Forum: Investing - Theory, News & General
Topic: LifeStrategy tinkering - incorrect dates & "market liquidity fund"?
Replies: 7
Views: 684

Re: LifeStrategy tinkering - incorrect dates & "market liquidity fund"?

Does a shift this minor throw off your investing strategy? If so, you may be re-balancing too often. Notice how Vanguard only offers the LS funds in 20% increments (80%, 60%, 40% and 20% stocks). You are getting way too fixated on tenths of a percent AA. You are fine if you are within 5%, many here...
by David Jay
Mon Nov 18, 2019 8:09 pm
Forum: Personal Finance (Not Investing)
Topic: Open Enrollment
Replies: 4
Views: 573

Re: Open Enrollment

As you say, you come out if one person needs to spend the deductible difference, within 2 years you cover the deductible for 2 people.

I would take that bet for a faster-accumulating HSA.
by David Jay
Mon Nov 18, 2019 11:44 am
Forum: Personal Investments
Topic: Do you regret rebalancing over the last few years?
Replies: 66
Views: 5384

Re: Do you regret rebalancing over the last few years?

Caduceus wrote:
Sun Nov 17, 2019 1:55 am
Have you calculated the size of what was lost compared to if you had let it run...?
This is one of the least productive things one can do in life - Monday morning quarterbacking ones plan after the fact is a great way to live a life of continual dissatisfaction.
by David Jay
Mon Nov 18, 2019 9:42 am
Forum: Personal Investments
Topic: Maxing out 401k Savings
Replies: 6
Views: 581

Re: Maxing out 401k Savings

The rules are different for IRA accounts and that may be the source of the confusion. IRA contributions can be made from the income of the other spouse (if total family work income exceeds $12,000 then each spouse can make the maximum pre-age-50 contribution of $6000).
by David Jay
Sun Nov 17, 2019 11:54 pm
Forum: Personal Investments
Topic: IRA Investing Help Please!
Replies: 4
Views: 329

Re: IRA Investing Help Please!

retiredjg wrote:
Sun Nov 17, 2019 4:17 pm
It's hard to go wrong using a single "all in one" fund such as a Fidelity Freedom Target Index fund.
+1. Make sure it is the “Index” (low cost) version.
by David Jay
Sat Nov 16, 2019 4:03 pm
Forum: Personal Finance (Not Investing)
Topic: More retirees have a mortgage
Replies: 116
Views: 7468

Re: More retirees have a mortgage

it's a good point. i'm wondering if it makes sense to refinance just before i retire to extend the term of the mortgages I upped the limit of my HELOC before retirement. At my CU there is no cost for holding a zero balance HELOC and the line of credit is good for 10 years. Quick and easy way to acc...
by David Jay
Sat Nov 16, 2019 3:46 pm
Forum: Personal Investments
Topic: Stable Value vs.Money Market
Replies: 3
Views: 534

Re: Stable Value vs.Money Market

Yield includes ER, so you can directly compare the 2.15 to 1.8
by David Jay
Sat Nov 16, 2019 3:29 pm
Forum: Personal Investments
Topic: Help me cash flow my retirement!- 2023-2028
Replies: 16
Views: 1412

Re: Help me cash flow my retirement!- 2023-2028

I have my first two years in Prime Money Market fund, years 3, 4 and 5 in Short Term bond fund. Everything else is in my normal portfolio at my selected AA. David Jay- What you describe has kind of been my default plan, although I have been using VMLUX (limited term). When I compare after tax yield...
by David Jay
Sat Nov 16, 2019 3:11 pm
Forum: Personal Investments
Topic: Help me cash flow my retirement!- 2023-2028
Replies: 16
Views: 1412

Re: Help me cash flow my retirement!- 2023-2028

I have my first two years in Prime Money Market fund, years 3, 4 and 5 in Short Term bond fund. Everything else is in my normal portfolio at my selected AA. David Jay- What you describe has kind of been my default plan, although I have been using VMLUX (limited term). When I compare after tax yield...
by David Jay
Sat Nov 16, 2019 3:08 pm
Forum: Personal Investments
Topic: Keeping my Co. 401k
Replies: 18
Views: 864

Re: Keeping my Co. 401k

...enhanced creditor protection with 401k (vs ira)... This is often stated here on BH but keep in mind that it is state specific . In my state (Michigan) there is no difference in asset protection between a 401K and an IRA, each person should research it for their own state. What if you move later ...
by David Jay
Sat Nov 16, 2019 12:49 pm
Forum: Investing - Theory, News & General
Topic: The One-Fund Portfolio as a default suggestion
Replies: 137
Views: 19431

Re: The One-Fund Portfolio as a default suggestion

I face no tax dilemmas (note my final sentence), Somehow, my brain saw the word "tax" and failed to register that there wouldn't be a tax impact. But, the idea remains the same. If you unexpectedly passed away early, do you really want to burden your spouse with a big portfolio change? My personal ...
by David Jay
Sat Nov 16, 2019 12:23 pm
Forum: Investing - Theory, News & General
Topic: The One-Fund Portfolio as a default suggestion
Replies: 137
Views: 19431

Re: The One-Fund Portfolio as a default suggestion

I still have a half-dozen funds, but in my “after I am gone” letter, I have suggested to my spouse (who has no interest in portfolio theory) to put everything in LS Moderate and go live her life. These are all tax-advantaged accounts so there are no tax consequences for the move. Do you really want...
by David Jay
Sat Nov 16, 2019 12:00 pm
Forum: Personal Investments
Topic: Keeping my Co. 401k
Replies: 18
Views: 864

Re: Keeping my Co. 401k

...enhanced creditor protection with 401k (vs ira)... This is often stated here on BH but keep in mind that it is state specific . In my state (Michigan) there is no difference in asset protection between a 401K and an IRA, each person should research it for their own state. What if you move later ...
by David Jay
Sat Nov 16, 2019 11:58 am
Forum: Investing - Theory, News & General
Topic: The One-Fund Portfolio as a default suggestion
Replies: 137
Views: 19431

Re: The One-Fund Portfolio as a default suggestion

I still have a half-dozen funds, but in my “after I am gone” letter, I have suggested to my spouse (who has no interest in portfolio theory) to put everything in LS Moderate and go live her life. These are all tax-advantaged accounts so there are no tax consequences for the move.
by David Jay
Sat Nov 16, 2019 11:34 am
Forum: Personal Investments
Topic: Keeping my Co. 401k
Replies: 18
Views: 864

Re: Keeping my Co. 401k

jcchen wrote:
Sat Nov 16, 2019 11:30 am
...enhanced creditor protection with 401k (vs ira)...
This is often stated here on BH but keep in mind that it is state specific. In my state (Michigan) there is no difference in asset protection between a 401K and an IRA, each person should research it for their own state.
by David Jay
Sat Nov 16, 2019 11:31 am
Forum: Personal Investments
Topic: Keeping my Co. 401k
Replies: 18
Views: 864

Re: Keeping my Co. 401k

Question: Does your former employer’s plan allow partial withdrawals? If not, that alone suggests moving it by age 70.5 so you can pay your RMDs in an efficient manner. A unique feature of a 401K is that the RMD must be made from the 401K. You cannot aggregate the RMD like you can with other tax-def...
by David Jay
Sat Nov 16, 2019 11:17 am
Forum: Personal Investments
Topic: Help me cash flow my retirement!- 2023-2028
Replies: 16
Views: 1412

Re: Help me cash flow my retirement!- 2023-2028

I have my first two years in Prime Money Market fund, years 3, 4 and 5 in Short Term bond fund.

Everything else is in my normal portfolio at my selected AA.
by David Jay
Fri Nov 15, 2019 9:42 am
Forum: Personal Investments
Topic: When to collect SS as an older spouse...
Replies: 5
Views: 700

Re: When to collect SS as an older spouse...

Fortunately or unfortunately, my FRA won't matter as much since I need to wait until my wife claims SS. It is challenging to provide good advice when we lack pieces of the picture. Are you saying (by the above statement) that you do not have 40 quarters of lifetime work experience and thus cannot c...
by David Jay
Fri Nov 15, 2019 8:35 am
Forum: Investing - Theory, News & General
Topic: Total Bond Market Index Fund
Replies: 25
Views: 2292

Re: Total Bond Market Index Fund

The only reason I can think of for going to a shorter duration fund is if you are in the decumulation phase where NAV affects withdrawal value. I am holding 2 years living expenses in Prime Money Market to avoid any short term NAV change risk.
by David Jay
Thu Nov 14, 2019 5:33 pm
Forum: Personal Investments
Topic: [Should I include my wife's assets in request for portfolio review?]
Replies: 8
Views: 593

Re: [Should I include my wife's assets in request for portfolio review?]

Are you planning to be filing MFJ in retirement? If not, no need to list her portfolio.
by David Jay
Thu Nov 14, 2019 2:01 pm
Forum: Personal Investments
Topic: Need of investment adviser?
Replies: 7
Views: 552

Re: Need of investment adviser?

Welcome to the forum! A frequent quote here is: “When you have learned enough to pick a good advisor, you no longer need one”. This is to say, there are a lot of “advisors” who are, to phrase it politely, “not adding value” to their customer’s portfolio. To find a good one you need to learn the basi...
by David Jay
Thu Nov 14, 2019 1:17 pm
Forum: Personal Investments
Topic: If one is pessimistic about both stocks and bonds, does a SPIA make sense?
Replies: 64
Views: 3202

Re: If one is pessimistic about both stocks and bonds, does a SPIA make sense?

I never said that US government debt will default. If you look at bond returns in the 1970s, you will understand that bond prices can fall dramatically even in the absence of defaults. I wonder if you have a thorough understanding of bonds and bond pricing. Bond ”prices” only have meaning if you se...
by David Jay
Thu Nov 14, 2019 12:06 pm
Forum: Personal Investments
Topic: If one is pessimistic about both stocks and bonds, does a SPIA make sense?
Replies: 64
Views: 3202

Re: If one is pessimistic about both stocks and bonds, does a SPIA make sense?

No, it does not make sense for a 40-something. Insurance companies invest in bonds. Their yield will be bond-like less insurance company expenses, you can do better by holding bonds yourself in a low-cost structure. If you don’t trust bonds you can’t trust insurance company solvency. For living exp...
by David Jay
Thu Nov 14, 2019 11:30 am
Forum: Personal Investments
Topic: If one is pessimistic about both stocks and bonds, does a SPIA make sense?
Replies: 64
Views: 3202

Re: If one is pessimistic about both stocks and bonds, does a SPIA make sense?

No, it does not make sense for a 40-something. Insurance companies invest in bonds. Their yield will be bond-like less insurance company expenses, you can do better by holding bonds yourself in a low-cost structure. If you don’t trust bonds you can’t trust insurance company solvency. For living exp...
by David Jay
Wed Nov 13, 2019 3:04 pm
Forum: Personal Investments
Topic: Looking for ROTH investment recommendations
Replies: 2
Views: 231

Re: Looking for ROTH investment recommendations

Welcome to the forum! I see several of your listed options are positions in individual stocks. I would have thought that the GE experience would have provided you with a great example of “Single-Stock Risk”. Single stock risk is the reason this forum teaches that the bulk of a portfolio should be in...
by David Jay
Wed Nov 13, 2019 2:01 pm
Forum: Personal Investments
Topic: Retiring soon and need help
Replies: 19
Views: 2288

Re: Retiring soon and need help

I would seriously look at a 3% rate (inflation adjusted going forward) or starting at about $100,000, giving yourselves some extra spending money to use on yourselves or others close to you. Otherwise you could end up, in the classic old adage, being “the richest person in the graveyard”. Very reas...
by David Jay
Wed Nov 13, 2019 1:03 pm
Forum: Personal Investments
Topic: How much to convert from Trad-IRA to Roth
Replies: 31
Views: 1902

Re: How much to convert from Trad-IRA to Roth

It looks to me like the top of your 2019 12% bracket will be $53,275. Keep in mind that if you go over that figure, you will pay 22% on only the money in excess of $53,275. So if your adjusted gross income ends up being $53,375 ($100 over the top of the bracket), your extra tax is 10% of $100, or te...
by David Jay
Wed Nov 13, 2019 12:26 pm
Forum: Personal Investments
Topic: Retiring soon and need help
Replies: 19
Views: 2288

Re: Retiring soon and need help

First off, you are in a fine position financially. As Dottie has shown, 3M implies a withdrawal rate of $120,000 a year at a 4% SWR. You say you need $85,000 before “his” SS, so your withdrawal rate until then, based on your 3.4M portfolio is only 2.5%, dropping further after start of SS. At 2.5% yo...