Search found 4784 matches

by David Jay
Tue May 22, 2018 5:34 pm
Forum: Investing - Help with Personal Investments
Topic: Please review my IPS / Allocation
Replies: 8
Views: 423

Re: Please review my IPS / Allocation

You need to take a look at when to start Social Security benefits. Thanks, I will. I prefer to retire at 62, but I might not have achieved my goals by then, in which case I will of course wait till 65 or 68. I intend to retire at age 62 in 2019. I intend to start SS benefits some time between age 6...
by David Jay
Tue May 22, 2018 4:55 pm
Forum: Investing - Help with Personal Investments
Topic: Is Whole Life Insurance Worth It?
Replies: 54
Views: 3803

Re: Is Whole Life Insurance Worth It?

... more importantly, due to the cost, the amount of insurance purchased is simply inadequate to the need. This is a point I have made before: “ As a process engineer, I observe that the design of whole life is the inverse of the needs of most people: 1. When one is young, has few assets, has famil...
by David Jay
Tue May 22, 2018 4:42 pm
Forum: Investing - Help with Personal Investments
Topic: Should I rollover VTSAX into 401k to do backdoor Roth? [Vanguard Total Stock]
Replies: 4
Views: 95

Re: Should I rollover VTSAX into 401k to do backdoor Roth? [Vanguard Total Stock]

In the longrun, is this worth it? I’ll be paying more in fees and possibly not getting similar investment returns as VTSAX. What are the options in the 401k plan? List the fund names, ticker symbols, and plan expense ratios. ^ ^ ^ This. Without knowing the 401K options and Expense Ratios (ERs), we ...
by David Jay
Tue May 22, 2018 3:03 pm
Forum: Investing - Theory, News & General
Topic: Is HFXIX (Catalyst Hedged Futures Strategy Fund) a good idea for long-term, low-risk capital preservation?
Replies: 8
Views: 272

Re: Is HFXIX (Catalyst Hedged Futures Strategy Fund) a good idea for long-term, low-risk capital preservation?

Welcome to the forum. You may find our start-up kit to be useful: https://www.bogleheads.org/wiki/Bogleheads%C2%AE_investing_start-up_kit To answer your final question: AVOID! [edit] The longest period for which Morningstar shows returns for this fund is 3 years (because of the changes to the fund s...
by David Jay
Tue May 22, 2018 10:54 am
Forum: Personal Finance (Not Investing)
Topic: Chase Savings Account emptied out!
Replies: 46
Views: 5884

Re: Chase Savings Account emptied out!

This is a downside of being connected into the banking system. I asked if it was possible to say "No ACH transfers" from this account. "Not possible" was the reply. I minimize the funds I keep in bank/credit union. I like that Vanguard requires a verification for each bank account that does ACH tran...
by David Jay
Tue May 22, 2018 10:36 am
Forum: Investing - Help with Personal Investments
Topic: How do you stop moving the goal posts.
Replies: 43
Views: 2596

Re: How do you stop moving the goal posts.

Oh, and a single-hander sailboat :happy
by David Jay
Tue May 22, 2018 10:35 am
Forum: Investing - Help with Personal Investments
Topic: How do you stop moving the goal posts.
Replies: 43
Views: 2596

Re: How do you stop moving the goal posts.

I am right on the cusp of retirement (Class of 2019), so I can identify with your question. I have spent a lot of time working through my retirement finances. I put together a year-by-year spreadsheet with spending, income source and tax consequences. Still doing some "what-if" scenarios around star...
by David Jay
Tue May 22, 2018 9:48 am
Forum: Investing - Theory, News & General
Topic: Roth IRA contributions during semi-retirement?
Replies: 14
Views: 583

Re: Roth IRA contributions during semi-retirement?

If you need living expenses and have a taxable balance, I would contribute to your Roth and spend from the taxable account. [edit] For clarity: 1. If you have free cash flow - fund your Roth accounts 2. If you do not have free cash flow but have taxable funds - fund your Roth accounts and take livin...
by David Jay
Mon May 21, 2018 3:01 pm
Forum: Investing - Theory, News & General
Topic: What are downsides of ESPP @ 15% discount ?
Replies: 36
Views: 2157

Re: What are downsides of ESPP @ 15% discount ?

If you are in a high tax bracket (say, 32% or higher), it may be worth looking at extending the rotation period to 1 year in order to sell at long term capital gains (LTCG) rate. No, not really. The 15% discount (or whatever discount you get) at vesting is always taxed as ordinary income. Only the ...
by David Jay
Mon May 21, 2018 12:52 pm
Forum: Investing - Help with Personal Investments
Topic: Pimco INCOME BOND FUND PONAX beating VWIAX Wellesley ~~ too good to be true?
Replies: 25
Views: 1388

Re: Pimco INCOME BOND FUND PONAX beating VWIAX Wellesley ~~ too good to be true?

I think what I see here is that PONAX Bond fund is Beating a stock Bond Fund VWIAX ... through most periods in time ( recent years) .. I agree different assets class for each .... BUT I would have expected the Bond Fund to have lagged VWIAX ... ie here u have the Bond Income Fund winning when norma...
by David Jay
Mon May 21, 2018 12:08 pm
Forum: Investing - Help with Personal Investments
Topic: Please review my IPS / Allocation
Replies: 8
Views: 423

Re: Please review my IPS / Allocation

Karma Skimmer wrote:
Mon May 21, 2018 4:09 am
Social Security at 62 (2021) 23k/year
You need to take a look at when to start Social Security benefits.
by David Jay
Mon May 21, 2018 11:59 am
Forum: Investing - Theory, News & General
Topic: Roll your own index fund current viability
Replies: 22
Views: 1368

Re: Roll your own index fund current viability

Would it be less complex to hold the SP500 in an index fund and short the stocks you wish to exclude?
by David Jay
Mon May 21, 2018 11:32 am
Forum: Investing - Help with Personal Investments
Topic: Pimco INCOME BOND FUND PONAX beating VWIAX Wellesley ~~ too good to be true?
Replies: 25
Views: 1388

Re: Pimco BOND FUND PONAX beating VWIAX Wellesley ~~ too good to be true?

sonosoldi3112 wrote:
Mon May 21, 2018 11:20 am
OK it is a BOND FUND INCOME ,,,, so you have a Bond fund beating a Bond plus Stock fund ie Wellesley VWIAX.
Yea, you can beat a lot of things when you guess right with 500% leverage.

[edit] In fairness, they are only NET long 145%
by David Jay
Mon May 21, 2018 10:56 am
Forum: Investing - Help with Personal Investments
Topic: Pimco INCOME BOND FUND PONAX beating VWIAX Wellesley ~~ too good to be true?
Replies: 25
Views: 1388

Re: Pimco PONAX beating VWIAX Wellesley ~~ too good to be true?

Leverage much?

Cash: 145% short, 98% long
Bonds: 66% short, 210% long
by David Jay
Mon May 21, 2018 10:21 am
Forum: Investing - Theory, News & General
Topic: What are downsides of ESPP @ 15% discount ?
Replies: 36
Views: 2157

Re: What are downsides of ESPP @ 15% discount ?

Is the company long-term stable and growing? If not, maybe start looking elsewhere for employment. Your long-term security is infinitely more important than a couple of money-making trades a year. If the company is stable and growing, why not hold onto stock you are buying at a minimum of 15% off? ...
by David Jay
Mon May 21, 2018 9:14 am
Forum: Investing - Theory, News & General
Topic: What are downsides of ESPP @ 15% discount ?
Replies: 36
Views: 2157

Re: What are downsides of ESPP @ 15% discount ?

If you are in a high tax bracket (say, 32% or higher), it may be worth looking at extending the rotation period to 1 year in order to sell at long term capital gains (LTCG) rate.
by David Jay
Mon May 21, 2018 9:10 am
Forum: Investing - Theory, News & General
Topic: What are downsides of ESPP @ 15% discount ?
Replies: 36
Views: 2157

Re: What are downsides of ESPP @ 15% discount ?

There will be little risk if you sell lots on a rotating basis. Even if one period has a loss (i.e. stock down more than 15%), the other periods will be profitable if you stay with it. Just don't: 1. Accumulate the stock or 2. Quit the program after the first down period - that locks in a permanent ...
by David Jay
Sun May 20, 2018 9:41 pm
Forum: Investing - Help with Personal Investments
Topic: Yet another “I’m leaving Ameriprise” post
Replies: 4
Views: 718

Re: Yet another “I’m leaving Ameriprise” post

3. No need to send the Dear John letter. Just hop on the bus, Gus.
4. Ask the Vanguard advisor where to sell which funds. It may be cheaper to sell at Ameriprise - or not. I don’t know, so ask the Vanguard rep.
by David Jay
Sun May 20, 2018 6:24 pm
Forum: Investing - Help with Personal Investments
Topic: Newly widowed, how do I invest 1.5 million life ins. proceeds
Replies: 64
Views: 6312

Re: Newly widowed, how do I invest 1.5 million life ins. proceeds

4stars: 1. A 2.5% withdrawal rate is considered by many to be a “perpetual” portfolio. Properly invested, one can withdraw an 2.5%, inflation adjusted (i.e. constant spending power) without depleting your capital. 2. This implies just about $3K a month from the life insurance proceeds, for a total o...
by David Jay
Sun May 20, 2018 2:38 pm
Forum: Investing - Help with Personal Investments
Topic: VG Traditional IRA Brokerage Account?
Replies: 4
Views: 228

Re: VG Traditional IRA Brokerage Account?

Would there be any issue with doing this? No issue at all. There can be advantages to having a full-function brokerage account. For example, we are purchasing 100 shares of a cruise company’s stock in order to get significant benefits on an upcoming cruise. I can do that inside of my tIRA with a br...
by David Jay
Sat May 19, 2018 5:30 pm
Forum: Local Chapters and Bogleheads Community
Topic: Roll Call for the Retirement Class of 2018!
Replies: 181
Views: 23526

Re: Roll Call for the Retirement Class of 2018!

Miriam2 wrote:
Sat May 19, 2018 3:49 pm
Thank you David Jay for your Retirement Literacy Tutorial and these very helpful threads :D
I’m scheduled for the Class of 2019, so I have been “studying up” on a lot of this stuff.
by David Jay
Sat May 19, 2018 2:46 pm
Forum: Investing - Help with Personal Investments
Topic: How does the process work for getting back funds from a Roth?
Replies: 9
Views: 737

Re: How does the process work for getting back funds from a Roth?

The 5-year rule applies to withdrawing earnings in a Roth IRA, not the contributions. I am then wrong. Note that Roth conversions do have a 5 year waiting period. I think the two different 5 year rules contribute to the confusion. https://www.kitces.com/blog/understanding-the-two-5-year-rules-for-r...
by David Jay
Sat May 19, 2018 2:41 pm
Forum: Local Chapters and Bogleheads Community
Topic: Roll Call for the Retirement Class of 2018!
Replies: 181
Views: 23526

Re: Roll Call for the Retirement Class of 2018!

It's going to be very close for 2018. . . . So don't sign me up yet, I will let you know if this becomes a December 31 retirement. OK, keep us updated with your plans! We always enjoy seeing your cute yellow airplane :happy and of course, reading your sensible investment thoughts and advice 8-) Dav...
by David Jay
Fri May 18, 2018 11:39 am
Forum: Investing - Help with Personal Investments
Topic: How does the process work for getting back funds from a Roth?
Replies: 9
Views: 737

Re: How does the process work for getting back funds from a Roth?

Settlement time from a mutual fund sale is D+1, so it takes 1 day to settle the sale. An ETF or stock sale is D+2 After that, it likely takes 2 days for electronic transfer to your bank account. So it should take place within 3-4 business days - definitely can all be done in a week. I have a HELOC a...
by David Jay
Fri May 18, 2018 8:51 am
Forum: Personal Finance (Not Investing)
Topic: Anybody familiar with Met Life Guaranteed Advantage Universal Life
Replies: 2
Views: 377

Re: Anybody familiar with Met Life Guaranteed Advantage Universal Life

1) If I leave this plan alone, I would be guaranteed the face amount of 700k eventually? If the policy were to remain in effect (i.e. dividends and cash value are enough to pay the premiums - this is unlikely as the premiums will go up dramatically as you age), then yes, your heirs will receive $70...
by David Jay
Fri May 18, 2018 8:29 am
Forum: Investing - Help with Personal Investments
Topic: Retiring soon - some questions
Replies: 27
Views: 3082

Re: Retiring soon - some questions

If you have not done so, you need to look at the impact of required minimum distributions (RMDs) in your future. These required distributions from your tax-deferred accounts increase in percentage over time (based on remaining life expectancy). With 2.2M in tax-deferred (which could grow to, say, 5...
by David Jay
Fri May 18, 2018 8:14 am
Forum: Personal Consumer Issues
Topic: Shopping for life insurance and disability insruance
Replies: 1
Views: 206

Re: Shopping for life insurance and disability insruance

At your age, shorter term policies will be less expensive. I would recommend a "layering" approach, where your portfolio assets replace the life insurance. For example, purchase both a $1M, 10 year policy (covers getting the kids out of the house) and a $500K, 15 year policy. By then (age 55) you sh...
by David Jay
Fri May 18, 2018 8:06 am
Forum: Investing - Help with Personal Investments
Topic: Long term investment in grains/wheat
Replies: 22
Views: 1300

Re: Long term investment in grains/wheat

whodidntante wrote:
Fri May 18, 2018 7:24 am
You can get direct exposure by buying and rolling a futures contract. There isn't anything you can buy and hold for 15 years that provides direct exposure.
As poster says, there is no practical way today to invest in the 2028 or 2032 wheat harvest.
by David Jay
Fri May 18, 2018 7:42 am
Forum: Personal Finance (Not Investing)
Topic: Can I Roth convert 401k? (and other retirement acct questions)
Replies: 10
Views: 802

Re: Can I Roth convert 401k? (and other retirement acct questions)

I have also concluded that I probably won't be doing Roth conversions, unless I have a bad year where I'm unemployed or sick and have very low income, then that would be a good year to roth-convert some funds. But still, it seems like a tIRA is somewhat more flexible than a 401k. Many people here o...
by David Jay
Thu May 17, 2018 12:33 pm
Forum: Personal Finance (Not Investing)
Topic: Why can't you rollover a retirement account into another one that you no longer work at?
Replies: 33
Views: 1730

Re: Why can't you rollover a retirement account into another one that you no longer work at?

An active plan doesn't even have to allow rollovers in. It's common to allow them from old 401(k)s, but the law only permits it. A recent change to Megacorp's plan was to allow rollovers in even after you separate from service. There's really no reason to obsess about it. There's nothing you can do...
by David Jay
Thu May 17, 2018 11:09 am
Forum: Personal Consumer Issues
Topic: What would you do? takes 6 months to fix a Tesla Model S
Replies: 33
Views: 2522

Re: What would you do? takes 6 months to fix a Tesla Model S

Sheepdog wrote:
Thu May 17, 2018 8:34 am
I have been driving for 65 years with only one accident (hitting a deer). :confused
And here I thought you loved animals...
by David Jay
Thu May 17, 2018 11:02 am
Forum: Investing - Theory, News & General
Topic: Bank Interest Rates — when will they go up?
Replies: 25
Views: 2739

Re: Bank Interest Rates — when will they go up?

I know that Vanguard's money market rates have been creeping upwards for some time - VMMXX (Prime Money Market) SEC yield is 1.85% today.

CDs are up nicely (3.2% on a 5 year today on the Vanguard site).
by David Jay
Wed May 16, 2018 11:16 am
Forum: Investing - Help with Personal Investments
Topic: Model ETF portfolios
Replies: 9
Views: 661

Re: Model ETF portfolios

Alexa9 wrote:
Tue May 15, 2018 10:09 pm
Chasing the most popular funds of last year is one of the worst strategies to use.
Academic studies have confirmed this. It is a losing strategy to select last year's winners.
by David Jay
Wed May 16, 2018 10:24 am
Forum: Investing - Help with Personal Investments
Topic: Friend says "Stock market will crash, invest in silver" - thoughts?
Replies: 127
Views: 7532

Re: Friend says "Stock market will crash, invest in silver" - thoughts?

I think this forum is a bit obsessed with the idea that investment is stock index + bond index. Any contrary idea suggesting physical assets such as property and gold as diversification and hedge is looked down upon ... Actually, we are obsessed with having an Investment Policy and sticking to it ....
by David Jay
Tue May 15, 2018 5:46 pm
Forum: Investing - Theory, News & General
Topic: can someone explain me AMT in dummy terms?
Replies: 15
Views: 2442

Re: can someone explain me AMT in dummy terms?

The Wizard wrote:
Tue May 15, 2018 4:26 pm
Peppergrass wrote:
Tue May 08, 2018 12:52 am
I blew someone's mind, hahaha. well won't tell you what it should be in the future then

yeah, at IB, problem is I get no free treasury purchases...
What is IB?
Interactive Brokers
by David Jay
Tue May 15, 2018 5:43 pm
Forum: Investing - Help with Personal Investments
Topic: How to Invest $600K for Retirees
Replies: 26
Views: 3963

Re: How to Invest $600K for Retirees

Look at these two together -an SPIA with a portion of the funds to provide income security and then a more aggressive (perhaps 60/40) portfolio for legacy. If all their needs are met then ups-and-downs in the legacy portfolio should be less of a worry.
by David Jay
Tue May 15, 2018 5:28 pm
Forum: Personal Consumer Issues
Topic: Now that we know we're just digital prey, tell me about ad blockers and other apps and which ones are best
Replies: 17
Views: 1379

Re: Now that we know we're just digital prey, tell me about ad blockers and other apps and which ones are best

I like the Brave browser for Windows and iOS (using it now on my iPad). Blocks ads, pop-ups and such. When I first started using it, it was so weird that the whole right-hand side of most web pages was blank.
by David Jay
Tue May 15, 2018 12:48 pm
Forum: Investing - Help with Personal Investments
Topic: Advice for My Mom's Retirement Portfolio
Replies: 5
Views: 588

Re: Advice for My Mom's Retirement Portfolio

Welcome to the forum. Clearly your Mom is well provided for. She needs $5000 year for basic living expenses and has about a million without including bank stock or office building. She will need a bit more cash when the office building sells but she will have an additional $200,000 or so. She could ...
by David Jay
Tue May 15, 2018 12:33 pm
Forum: Personal Finance (Not Investing)
Topic: Can a <median household save 1 year of expenses every year?
Replies: 158
Views: 7471

Re: Can a <median household save 1 year of expenses every year?

triceratop wrote:
Tue May 15, 2018 10:48 am
...not possible for any true Scot?
well played...
by David Jay
Tue May 15, 2018 12:31 pm
Forum: Investing - Help with Personal Investments
Topic: Large Personal Injury Settlement
Replies: 58
Views: 4853

Re: Large Personal Injury Settlement

Start on the Wiki with "Managing a Windfall", link: https://www.bogleheads.org/wiki/Managing_a_windfall

BTW - welcome to the forum. Nobody here will ever make a penny off of you!
by David Jay
Tue May 15, 2018 8:29 am
Forum: Personal Finance (Not Investing)
Topic: Can a <median household save 1 year of expenses every year?
Replies: 158
Views: 7471

Re: Can a <median household save 1 year of expenses every year?

Glockenspiel wrote:
Mon May 14, 2018 4:17 pm
Every time I see this I think this is a person completely removed from the universe that real people live in. For ANYONE making less than the median household income, this is impossible.
I guess you have your answer. It is not impossible, just very rare.
by David Jay
Mon May 14, 2018 8:38 pm
Forum: Personal Finance (Not Investing)
Topic: When to claim Social Security: two reasons not to wait
Replies: 68
Views: 11485

Re: When to claim Social Security: two reasons not to wait

My analysis and http://maximizemysocialsecurity.com both agree that my wife should also delay until 70. It's not a huge difference from her benefit at 66.5, and certainly one that we could change if for some reason we need the cash flow. But right now the plan is still for her to wait until 70. Lik...
by David Jay
Mon May 14, 2018 6:15 pm
Forum: Personal Finance (Not Investing)
Topic: When to claim Social Security: two reasons not to wait
Replies: 68
Views: 11485

Re: When to claim Social Security: two reasons not to wait

(Full disclosure: I'm 64 and my wife is 63 this year. We are planning to both wait until 70 to start our benefits. We still have 6-7 years to change our minds. No matter what, we intend to be happy.) Joe: I would take a good look at the numbers if the lower-earning spouse takes SS at FRA (likely 66...
by David Jay
Mon May 14, 2018 3:52 pm
Forum: Personal Finance (Not Investing)
Topic: When to claim Social Security: two reasons not to wait
Replies: 68
Views: 11485

Re: When to claim Social Security: two reasons not to wait

(Full disclosure: I'm 64 and my wife is 63 this year. We are planning to both wait until 70 to start our benefits. We still have 6-7 years to change our minds. No matter what, we intend to be happy.) Joe: I would take a good look at the numbers if the lower-earning spouse takes SS at FRA (likely 66...
by David Jay
Mon May 14, 2018 3:14 pm
Forum: Forum Issues and Administration
Topic: The front page is ugly
Replies: 127
Views: 8930

Re: The front page is ugly

Jags4186 wrote:
Mon May 14, 2018 8:02 am
Yes, we should cover the front page in ads, pop ups, and autoplaying videos so it looks just like a real 2018 professional webpage!
Yea, that would be the ticket... :twisted:
by David Jay
Sat May 12, 2018 11:34 am
Forum: Investing - Help with Personal Investments
Topic: Is REIT a prudential investment choice at the moment?
Replies: 20
Views: 1869

Re: Is REIT a prudential investment choice at the moment?

AlohaJoe wrote:
Sat May 12, 2018 8:51 am
David Jay wrote:
Fri May 11, 2018 11:18 am
Ged wrote:
Fri May 11, 2018 9:00 am
We are in a rising interest rate environment at the moment. Not good for REIT.
This!
My REIT index is up 17% over the past year. So much for rising rates.
OP was asking about investing new money NOW. Not last year.
by David Jay
Sat May 12, 2018 9:47 am
Forum: Investing - Help with Personal Investments
Topic: Index allocation help for a beginner
Replies: 14
Views: 1101

Re: Index allocation help for a beginner

I am just worried that I won't be able to retire at a reasonable age and every year they are staying we need more and more to have a comfortable retirement, so I don't want to fall short. Chris: I wish I was as long-sighted as you are when I was young, I didn’t get serious about saving until my mid...
by David Jay
Fri May 11, 2018 10:39 pm
Forum: Investing - Help with Personal Investments
Topic: Need help with 401K set up meeting
Replies: 16
Views: 721

Re: Need help with 401K set up meeting

Combining 1, 2 and 3 - at least one passive, low cost index fund in each of three areas: A. Total US (or at least the SP500) B. Total Foreign (or at least developed nations) C. US Intermediate Term Bond fund. With those 3 it is possible to build a diversified, low cost portfolio in an asset allocati...
by David Jay
Fri May 11, 2018 7:25 pm
Forum: Investing - Help with Personal Investments
Topic: Question about Vanguard Small Cap Value Fund VS. ETF
Replies: 10
Views: 602

Re: Question about Vanguard Small Cap Value Fund VS. ETF

In the case of Vanguard, SCV (ETF) and VSIAX (Admiral class) holdings are literally the same - both are share classes of the same fund.
by David Jay
Fri May 11, 2018 1:33 pm
Forum: Investing - Help with Personal Investments
Topic: Backdoor ROTH for 1 Year Only? Worth It?
Replies: 12
Views: 616

Re: Backdoor ROTH for 1 Year Only? Worth It?

Messner8000 wrote:
Fri May 11, 2018 1:16 pm
Thanks for the clarification. And yes - I meant $5500 for my wife and $5500 for me (and so I"ll create two IRAs). Sounds like this was an easy decision to make after all!
Sure, create them at your current Roth custodian. Then do the conversions right into your existing Roth accounts.