Search found 3844 matches

by David Jay
Fri Oct 20, 2017 10:17 pm
Forum: Investing - Help with Personal Investments
Topic: Advice on Advisor's choice of immediate variable annuity for retirement income
Replies: 16
Views: 597

Re: Advice on Advisor's choice of immediate variable annuity for retirement income

I posted this earlier today, I wrote about IRA accounts but the same is true for 401K accounts because they are also tax-deferred: viewtopic.php?f=1&t=230189#p3581258
by David Jay
Fri Oct 20, 2017 3:41 pm
Forum: Investing - Help with Personal Investments
Topic: Transferring Variable Annuity
Replies: 8
Views: 559

Re: Transferring Variable Annuity

The OP has figured this out, but for others who may be reading this thread: Variable Annuities inside an IRA are essentially financial malpractice. VAs are "wrappers", with mutual funds inside. The insurance company typically charges you 2% - 3% (fees plus ER) for the privilege of holding your money...
by David Jay
Fri Oct 20, 2017 12:02 pm
Forum: Investing - Help with Personal Investments
Topic: Transferring Variable Annuity
Replies: 8
Views: 559

Re: Transferring Variable Annuity

Cyclesafe wrote:
Fri Oct 20, 2017 10:20 am
Please do not cash out at NWM. That would be a taxable event for your earnings.
Perhaps you missed that both of these annuities are held within IRAs (one Roth, one Traditional). As long as the assets remain inside the IRA there is no taxable event.
by David Jay
Fri Oct 20, 2017 10:18 am
Forum: Personal Finance (Not Investing)
Topic: Whole Life Insurance
Replies: 36
Views: 1498

Re: Whole Life Insurance

Yes, I also feel like it's too good to be true. That's why I came here to try and find the catch. That is why you need to read the actual policy (to understand cash value, etc.) and an in-force illustration . Don't believe anything that includes the words "estimated" or "projected". And double-don'...
by David Jay
Thu Oct 19, 2017 10:02 pm
Forum: Investing - Theory, News & General
Topic: For those near retirement and rebalanced to Bonds...
Replies: 26
Views: 2219

Re: For those near retirement and rebalanced to Bonds...

I am about a year from retirement. I have a very high tolerance for volatility (I don't freak out when stocks go on sale) and I was 100% stocks through 2000 and 2009. I have moved all of my living expenses for the period from age 62 to age 70 to bonds. In this way the market can't prevent me from re...
by David Jay
Thu Oct 19, 2017 12:15 pm
Forum: Personal Finance (Not Investing)
Topic: Whole Life Insurance
Replies: 36
Views: 1498

Re: Whole Life Insurance

I want to take you back to the basics: What is the reason why your parents are holding this policy? If they intend to hold the policy until death, then the cash value is meaningless. At death the policy pays the benefit amount and the cash value is lost. If they holding this as an investment that t...
by David Jay
Thu Oct 19, 2017 11:58 am
Forum: Personal Finance (Not Investing)
Topic: Whole Life Insurance
Replies: 36
Views: 1498

Re: Whole Life Insurance

Raabe34 wrote:
Thu Oct 19, 2017 11:42 am
Ask for an in-force illustration currently and then with the projection.
Important language! An in-force illustration is what the insurance company guarantees. Every other number is just so many words. Even if it is in writing.
by David Jay
Thu Oct 19, 2017 11:55 am
Forum: Personal Finance (Not Investing)
Topic: Whole Life Insurance
Replies: 36
Views: 1498

Re: Whole Life Insurance

I want to take you back to the basics: What is the reason why your parents are holding this policy? If they intend to hold the policy until death, then the cash value is meaningless. At death the policy pays the benefit amount and the cash value is lost. If they holding this as an investment that th...
by David Jay
Wed Oct 18, 2017 5:15 pm
Forum: Investing - Theory, News & General
Topic: Larry Swedroe:Better To Face The Correction
Replies: 50
Views: 5876

Re: Larry Swedroe:Better To Face The Correction

Excellent article by Larry. He shows that it is more wise to stay in the market than to try to time a correction when equities seem over valued or generously valued. This is probably the least news-worthy thing to post in this particular forum. :D I don't know - I have been involved in 3 "going to ...
by David Jay
Tue Oct 17, 2017 6:52 pm
Forum: Investing - Help with Personal Investments
Topic: Transferring IRA account from Etrade to Credit Union
Replies: 5
Views: 303

Re: Transferring IRA account from Etrade to Credit Union

Welcome to the forum.

Why would you even WANT to transfer an IRA to a Credit Union? What does a Credit Union offer you that would make you think about doing this?

The process is very straightforward, you work with the destination institution. Because they want your business...

But again, WHY?
by David Jay
Tue Oct 17, 2017 5:35 pm
Forum: Personal Finance (Not Investing)
Topic: Help picking apart whole life insurance cash value
Replies: 39
Views: 1501

Re: Help picking apart whole life insurance cash value

At year 10 end, the IRR for converting the cash value portion of premiums to guaranteed cash value is 3.33 %. As a 40 year old, you have no memory of inflationary times so it is easy to assume that the low interest rate environment of the last 20 years will go on forever. My first home purchase was...
by David Jay
Mon Oct 16, 2017 6:25 pm
Forum: Investing - Theory, News & General
Topic: Roth as good as you think?
Replies: 29
Views: 3419

Re: Roth as good as you think?

I doubt many 25 or 30 year olds can predict what their future tax bracket will be when they retire at ,say, 65. True, but some people have a hint: 1. If your are in the 39% tax bracket, go with tax deferred. 2. If you are making 8 bucks an hour (like my youngest), do a Roth. (Oh, and take the saver...
by David Jay
Mon Oct 16, 2017 5:16 pm
Forum: Investing - Theory, News & General
Topic: Roth as good as you think?
Replies: 29
Views: 3419

Re: Roth as good as you think?

The Wiki does the same calculation (and confirms your result) here: https://www.bogleheads.org/wiki/Traditional_versus_Roth So it really does come down to tax bracket at contribution versus tax bracket at withdrawal. The issue that is sometimes over-looked is that RMDs can easily push retirees into ...
by David Jay
Mon Oct 16, 2017 2:16 pm
Forum: Personal Finance (Not Investing)
Topic: couple of questions regarding inflation and the 4% rule
Replies: 19
Views: 1956

Re: couple of questions regarding inflation and the 4% rule

I understand the "4% rule" as something along the lines of...you can withdraw 4% of your portfolio value in year 1 of retirement, increase withdrawal each year based on inflation, and you have a high (95%-ish) chance of success over a period of 30 years. I'm aware that 3.5% may be the new 4% and th...
by David Jay
Mon Oct 16, 2017 2:03 pm
Forum: Investing - Help with Personal Investments
Topic: Making a Roth IRA for my Dad
Replies: 31
Views: 1271

Re: Making a Roth IRA for my Dad

Does he have a 401K or other deferred savings plan at work? If so, he can dump $18,000 a year into that (and replace those living expenses with taxable funds) for the next couple of years. That's the fastest way to build up his tax-advantaged space. He can roll that money over into a Roth later if i...
by David Jay
Mon Oct 16, 2017 1:45 pm
Forum: Personal Finance (Not Investing)
Topic: Social Security payouts vs. "estimated benefits" online
Replies: 36
Views: 1876

Re: Social Security payouts vs. "estimated benefits" online

As someone else referenced once you have earnings past the 2nd bend point ($2.25M Index earnings) the differences for future earnings will have limited impact to your benefits. $100K indexed earnings = $35.70/mo in FRA benefits past the 2nd bend point. (Earnings /420 * 15%) And even that assumes yo...
by David Jay
Mon Oct 16, 2017 12:38 pm
Forum: Personal Finance (Not Investing)
Topic: Social Security payouts vs. "estimated benefits" online
Replies: 36
Views: 1876

Re: Social Security payouts vs. "estimated benefits" online

Up through age 60, but with a two-year delay because of how long it takes to gather accurate wage data, one's future benefit is adjusted for the wage index. Starting from age 62 benefits are adjusted per CPI-W. Am I correct that this creates a window of vulnerability for early retirees? If there is...
by David Jay
Sun Oct 15, 2017 9:41 pm
Forum: Personal Finance (Not Investing)
Topic: Social Security payouts vs. "estimated benefits" online
Replies: 36
Views: 1876

Re: Social Security payouts vs. "estimated benefits" online

Yes, if you have 35 years at max contribution, you should receive in excess of $3000 a month at Full Retirement Age (FRA).

Increases for inflation are based on a wage index, not on cost of living per say. But if wages go up 2% per year, your projections are reasonable.
by David Jay
Sat Oct 14, 2017 7:37 pm
Forum: Investing - Help with Personal Investments
Topic: ETF index funds for hesitant Retiree
Replies: 7
Views: 611

Re: ETF index funds for hesitant Retiree

delamer wrote:
Sat Oct 14, 2017 5:39 pm
You might show her this, and see where her comfort level is:

https://personal.vanguard.com/us/insigh ... llocations
^^^ This!
by David Jay
Sat Oct 14, 2017 1:06 pm
Forum: Investing - Help with Personal Investments
Topic: ETF index funds for hesitant Retiree
Replies: 7
Views: 611

Re: ETF index funds for hesitant Retiree

The key questions are: What is her need, ability and willingness to take risk. It is hard to comment intelligently without knowing her expenses and the size of the portfolio. If she has $3M and only needs $75,000 a year for living expenses then she has no need to take any risk. If she has $1M and ne...
by David Jay
Sat Oct 14, 2017 8:44 am
Forum: Investing - Help with Personal Investments
Topic: inservice rollover to IRA?
Replies: 7
Views: 388

Re: inservice rollover to IRA?

If you are over 59.5 and live in Florida then there is no big advantage to keeping the funds in the employer accounts. I would look at fund choices and ERs at the margin (I did a rollover of my 401k within a week of turning 59.5 but I had poor fund choices in my small company 401K), but in the end i...
by David Jay
Sat Oct 14, 2017 8:32 am
Forum: Investing - Help with Personal Investments
Topic: Investing in private companies
Replies: 31
Views: 1869

Re: Investing in private companies

With regard to the comment below about not buying at least a 51% stake, this is likely going to be impossible for you. The investors who acquire such a stake are going to be the sophisticated institutional players who will also demand (and obtain) board presence as a condition of their investment. ...
by David Jay
Sat Oct 14, 2017 8:00 am
Forum: Investing - Help with Personal Investments
Topic: My EJ portfolio vs my Vanguard, side by side
Replies: 27
Views: 3117

Re: My EJ portfolio vs my Vanguard, side by side

I'm curious about the taxes. I suspect you didn't withdraw from either portfolio the money needed to pay the taxes on the annual distributions. Your tax returns, especially Schedule B should be enlightening. In some respects, if EJ caused you $10,000 extra annually in taxes over Vanguard, then it w...
by David Jay
Fri Oct 13, 2017 7:00 pm
Forum: Personal Finance (Not Investing)
Topic: Roth conversions...did I miss the boat?
Replies: 7
Views: 1331

Re: Roth conversions...did I miss the boat?

If you had sizable pre-tax dollars in a Traditional IRA what would be your Roth conversion strategy today (if any)? It all comes down to taxes: 1. Your current marginal tax rate 2. Marginal tax rate between retirement and start of Social Security 3. Marginal tax rate after start of SS and before st...
by David Jay
Fri Oct 13, 2017 5:02 pm
Forum: Investing - Help with Personal Investments
Topic: Investing in private companies
Replies: 31
Views: 1869

Re: Investing in private companies

First, never purchase less than 51% of a privately held company. You have virtually no control or liquidity as a minority owner. Pooling resources in a partnership in order to purchase control of a small company may work out. Be certain that everything is spelled out clearly in the partnership docum...
by David Jay
Fri Oct 13, 2017 3:45 pm
Forum: Investing - Help with Personal Investments
Topic: My EJ portfolio vs my Vanguard, side by side
Replies: 27
Views: 3117

Re: My EJ portfolio vs my Vanguard, side by side

First guess - underperformance by International in recent years. At 40% of stocks (32% of portfolio) the VG account appears to have about 12-13% more international than EJ.
by David Jay
Fri Oct 13, 2017 2:37 pm
Forum: Investing - Help with Personal Investments
Topic: Need help with current market (voo,vti)
Replies: 48
Views: 1999

Re: Need help with current market (voo,vti)

Markets are at-or-near all time highs about 60% of the time. So by definition it is completely normal for broad market funds to be "really high and about as high as they have ever been". True, I just dont want to risk buying high and then later it dips real low in price , so I was thinking bonds an...
by David Jay
Fri Oct 13, 2017 10:43 am
Forum: Personal Finance (Not Investing)
Topic: 2018 SS COLA contest
Replies: 7
Views: 779

Re: 2018 SS COLA contest

TLC wrote:
Fri Oct 13, 2017 8:30 am
David Jay wrote:
Thu Oct 12, 2017 9:21 pm
Do you know if 2016 AWI comes out at the same time? It has been issued in October in recent years
The AWI for 2016 was reported today to be 48,664.73.
source: https://www.ssa.gov/oact/cola/awiseries.html
Thanks, I saw your other post will all the numbers...
by David Jay
Fri Oct 13, 2017 8:35 am
Forum: Investing - Help with Personal Investments
Topic: Diversify IRAS?
Replies: 3
Views: 158

Re: Diversify IRAS?

To clarify, concentration is not wrong. I have a (small) concentration in Small Company Value. But I understand that by overweighting (also called "tilting" around here) that I am making an informed "bet" on the SCV proposition. The most important thing about overweighting is to believe enough in yo...
by David Jay
Fri Oct 13, 2017 8:23 am
Forum: Investing - Help with Personal Investments
Topic: Diversify IRAS?
Replies: 3
Views: 158

Re: Diversify IRAS?

The TR2060 fund is fully diversified. It holds US stocks, International stocks, US bonds and International bonds. You are free to overweight some sector that you feel will provide better (or less correlated) performance in the future, but understand that what you will be doing is the opposite of div...
by David Jay
Thu Oct 12, 2017 10:38 pm
Forum: Investing - Help with Personal Investments
Topic: Advice on Retirement Investments: IRA? High-Expense Govt 457b?
Replies: 12
Views: 726

Re: Advice on Retirement Investments: IRA? High-Expense Govt 457b?

Thanks. Would it be smarter to open a standard IRA and fund it instead of the Roth? (The logic being that my federal tax bracket might be lower when I retire, so I should take advantage of a tax savings now?) I honestly think I'm likely to remain in the 25% bracket (assuming brackets remain as they...
by David Jay
Thu Oct 12, 2017 9:21 pm
Forum: Personal Finance (Not Investing)
Topic: 2018 SS COLA contest
Replies: 7
Views: 779

Re: 2018 SS COLA contest

Alan:

Do you know if 2016 AWI comes out at the same time? It has been issued in October in recent years. My wife turned 60 in 2016 so that is the only number needed to calculate her PIA (she will not have any additional years with income).
by David Jay
Thu Oct 12, 2017 9:10 pm
Forum: Personal Finance (Not Investing)
Topic: annuity beneficiary
Replies: 5
Views: 285

Re: annuity beneficiary

I would ask for a prospectus for the annuity. Typical expenses for a variable annuity are 2.5% per year.
by David Jay
Thu Oct 12, 2017 9:08 pm
Forum: Personal Finance (Not Investing)
Topic: annuity beneficiary
Replies: 5
Views: 285

Re: annuity beneficiary

Welcome to Bogleheads. The choice is not simple, it depends on a lot of things but mostly on your tax bracket and the amount of the lump sum. Investing the money yourself will be much lower cost than keeping the money at the insurance company. So it is necessary to weigh the cost of taking it out no...
by David Jay
Thu Oct 12, 2017 8:28 pm
Forum: Investing - Help with Personal Investments
Topic: Advice on Retirement Investments: IRA? High-Expense Govt 457b?
Replies: 12
Views: 726

Re: Advice on Retirement Investments: IRA? High-Expense Govt 457b?

Welcome to Bogleheads. You may want to visit the Wiki for an overview of BH thinking on the "Starter Kit" page here: https://www.bogleheads.org/wiki/Bogleheads%C2%AE_investing_start-up_kit 1. Because of the high costs of the 457 offerings, I would fund the Roth first and put the remainder of your re...
by David Jay
Thu Oct 12, 2017 8:01 pm
Forum: Investing - Help with Personal Investments
Topic: Need help with current market (voo,vti)
Replies: 48
Views: 1999

Re: Need help with current market (voo,vti)

Markets are at-or-near all time highs about 60% of the time. So by definition it is completely normal for broad market funds to be "really high and about as high as they have ever been".
by David Jay
Thu Oct 12, 2017 7:14 pm
Forum: Investing - Help with Personal Investments
Topic: 2050 Target Retirement Fund
Replies: 11
Views: 1420

Re: 2050 Target Retirement Fund

My son has his Roth IRA exclusively in the VG 2050 TDF. It's done well for him in the 7/8 years he's been investing in the fund. I don't believe he has any reason not to continue to invest in the fund every year. A regular contributor here at BH by the name of "neurosphere" has a signature line tha...
by David Jay
Thu Oct 12, 2017 1:19 pm
Forum: Investing - Help with Personal Investments
Topic: Balancing vs. Momentum Investing:
Replies: 4
Views: 358

Re: Balancing vs. Momentum Investing:

I would not listen to any "expert" who recommends holding more stocks than your IPS specifies, but especially at this point in the market cycle.

If 60/40 is your target allocation, rebalance to 60/40.
by David Jay
Thu Oct 12, 2017 1:13 pm
Forum: Personal Finance (Not Investing)
Topic: Amazon survey scam
Replies: 4
Views: 762

Re: Amazon survey scam

pintail07 wrote:
Thu Oct 12, 2017 12:01 pm
Beware of receiving an email asking for you to take a survey and receiving a free gift, total scam.
I no longer trust any email as being from the claimed sender. Spoofing an email "from" address is child's play.
by David Jay
Thu Oct 12, 2017 9:55 am
Forum: Investing - Help with Personal Investments
Topic: 2050 Target Retirement Fund
Replies: 11
Views: 1420

Re: 2050 Target Retirement Fund

There is no special reason for the Vanguard Roth to be "balanced." ^^^ This. Your asset allocation should be measured across all of your accounts, it is not necessary (or even useful) to try to balance inside of each account. Some accounts are better used for certain types of investments (i.e. taxa...
by David Jay
Tue Oct 10, 2017 8:45 am
Forum: Personal Finance (Not Investing)
Topic: Does IRS life expectancy table change?
Replies: 10
Views: 1215

Re: Does IRS life expectancy table change?

Keep in mind that RMD percentages are based on longevity, and longevity is increasing. So any changes will likely reduce the percentage.

(without going too far down the rabbit hole, perhaps that is part of the reason why the IRS is slow to revise the numbers...)
by David Jay
Tue Oct 10, 2017 8:35 am
Forum: Personal Finance (Not Investing)
Topic: Schwab money market fund for my mom? How safe?
Replies: 5
Views: 361

Re: Schwab money market fund for my mom? How safe?

One would think that you could purchase government insured CDs from within her Schwab account.
by David Jay
Mon Oct 09, 2017 6:02 pm
Forum: Investing - Theory, News & General
Topic: Probably a very simple investing principle but....
Replies: 22
Views: 1990

Re: Probably a very simple investing principle but....

Two points:

1. Few here would recommend a 100% stock portfolio for a new investor with a lump sum.

2. There has never been a 55% year-to-year drop in the history of the stock market (see 100% in the attached). https://www.vanguard.com/us/insights/sa ... llocations
by David Jay
Sun Oct 08, 2017 7:19 pm
Forum: Investing - Theory, News & General
Topic: New Fiduciary Rule seems to be a big disappointment
Replies: 18
Views: 2314

Re: New Fiduciary Rule seems to be a big disappointment

I have a Merrill Edge account and I'm able to invest in no load funds. Is that a taxable account or a retirement account (401/403/457/IRA)? Strictly speaking, the fiduciary rule has been propagated by the DOL for retirement accounts. [edit] (yes, I know that the DOL is trying to extend it further...)
by David Jay
Sun Oct 08, 2017 1:39 pm
Forum: Personal Finance (Not Investing)
Topic: Change for a $20 requires ID!!
Replies: 22
Views: 2279

Re: Change for a $20 requires ID!!

Ruger wrote:
Sun Oct 08, 2017 11:13 am
My understanding is that the $20 is the one most often counterfeited, so I guess they are being overly cautious.
Did you hear the one about the innumerate artiste?

He created an absolutely perfect counterfeit of the ... wait for it ... one dollar bill.
by David Jay
Sat Oct 07, 2017 12:14 pm
Forum: Personal Finance (Not Investing)
Topic: Cash balance plans and self directed IRAs
Replies: 3
Views: 296

Re: Cash balance plans and self directed IRAs

For the second topic, what did you want to do within the self-directed portion? If it is public securities (stocks, bonds, options, etc.) then all you need to do is transfer a portion of your IRA to a new custodian, presumably a low-cost brokerage house like TDAmeritrade, Schwab, etc. All transactio...
by David Jay
Fri Oct 06, 2017 2:48 pm
Forum: Investing - Help with Personal Investments
Topic: Frequent Trading Question...
Replies: 3
Views: 483

Re: Frequent Trading Question...

Nothing like Bogleheads when you're squawking 7700
by David Jay
Fri Oct 06, 2017 2:01 pm
Forum: Investing - Theory, News & General
Topic: I'm thinking about cashing completely out of equites....
Replies: 75
Views: 8086

Re: I'm thinking about cashing completely out of equites....

Rick Ferri has called 30/70 (stocks/bonds) the "sweet spot" for retirees, with enough stock exposure to keep ahead of inflation while being relatively well insulated from market movements. But I agree with others, no sudden moves. My personal IPS says I will not change my asset allocation by more th...
by David Jay
Thu Oct 05, 2017 11:59 am
Forum: Investing - Help with Personal Investments
Topic: Help with In-Laws Request to Review their Portfolio from LPL Advisor
Replies: 8
Views: 780

Re: Help with In-Laws Request to Review their Portfolio from LPL Advisor

V.A. costs (policy fees+ fund fees) are typically more than 2% per year. That is a lot of drag on performance...
by David Jay
Thu Oct 05, 2017 11:46 am
Forum: Personal Finance (Not Investing)
Topic: Is it possible to buy TOO LITTLE house? Is buying a home in a HCOL actually cheaper than a LCOL?
Replies: 14
Views: 1251

Re: Is it possible to buy TOO LITTLE house? Is buying a home in a HCOL actually cheaper than a LCOL?

If I could go back 20 years, I would make a number of different investment choices.

But it probably wouldn't be more house, it would probably be Amazon (IPO was May 1997)

(see the first quote on my signature line below)