Search found 7081 matches

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: 482

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: 488

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: 53
Views: 2222

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: 53
Views: 2222

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: 53
Views: 2222

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: 220

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: 2179

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: 29
Views: 1539

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: 2179

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...
by David Jay
Wed Nov 13, 2019 12:04 pm
Forum: Personal Finance (Not Investing)
Topic: Retiring in early 2020, want to stuff preferred tax vehicles?
Replies: 15
Views: 940

Re: Retiring in early 2020, want to stuff preferred tax vehicles?

Are you aware that HSA contributions are required to be pro-rated by month? (For example, if you retire part way through February, you can put only 2/12 the total annual contribution into your HSA. You made this statement, could you please provide your source? It is an important issue as it directl...
by David Jay
Wed Nov 13, 2019 11:44 am
Forum: Personal Investments
Topic: Asset Allocation advice
Replies: 5
Views: 396

Re: Asset Allocation advice

Two comments: 1. Too much company stock. You may or may not be able to adjust this, but if you have ability to unload some of this you need to do so. Your income and 26% of your retirement are both relying on a single company, this is the definition of single company risk. 2. 22% in Emerging Markets...
by David Jay
Wed Nov 13, 2019 11:35 am
Forum: Personal Finance (Not Investing)
Topic: 250k Live off of or put in Index funds
Replies: 3
Views: 906

Re: 250k Live off of or put in Index funds

With the current low yield of bonds, I now hold two years of expenses in Vanguard Prime Money Market and the remainder in Bonds (a mix of short term and intermediate term). So I would have no problem leaving 3 years expenses in money market or putting a portion of the money back into bonds.
by David Jay
Wed Nov 13, 2019 11:13 am
Forum: Personal Finance (Not Investing)
Topic: Retiring in early 2020, want to stuff preferred tax vehicles?
Replies: 15
Views: 940

Re: Retiring in early 2020, want to stuff preferred tax vehicles?

Are you aware that HSA contributions are required to be pro-rated by month? (For example, if you retire part way through February, you can put only 2/12 the total annual contribution into your HSA. You made this statement, could you please provide your source? It is an important issue as it directl...
by David Jay
Wed Nov 13, 2019 10:33 am
Forum: Investing - Theory, News & General
Topic: Money Revealed
Replies: 8
Views: 1559

Re: Money Revealed

There are millions of ways that people over the centuries have pursued their financial goals. Some are timeless, others are era specific (for example: the railroad barons). Many require very specific conditions and skills which the average person can’t duplicate. It can be fascinating to read and wa...
by David Jay
Tue Nov 12, 2019 8:33 pm
Forum: Personal Investments
Topic: Portfolio Advice - Near Retirement - New Investor Needs Help!
Replies: 14
Views: 921

Re: Portfolio Advice - Near Retirement - New Investor Needs Help!

When I say you are in good shape, I mean that your assets will provide well for your retirement years. Doing a quick check, after age 70 your finances Will look like this (rounded): His SS: 42,000 Spousal: $14,000 (half of his full retirement benefit, based on his birth year. This round number cover...
by David Jay
Tue Nov 12, 2019 8:20 pm
Forum: Personal Investments
Topic: Portfolio Advice - Near Retirement - New Investor Needs Help!
Replies: 14
Views: 921

Re: Portfolio Advice - Near Retirement - New Investor Needs Help!

Welcome to the forum, Go Blue! (I hope you’re not a Spartan...) First off, let me say that you are doing great. Yes, you probably need to move to a 50/50 or 40/60 portfolio as you prepare for retirement, I retired in January (@62) with a 45/55 Allocation. The first thing to understand is that you ne...
by David Jay
Tue Nov 12, 2019 7:56 pm
Forum: Personal Consumer Issues
Topic: acura rdx or mercedes glc300 small luxury suv
Replies: 16
Views: 1125

Re: acura rdx or mercedes glc300 small luxury suv

I have owned a Mercedes, they are beautifully engineered vehicles. But for bulletproof reliability, I would take the Acura. Nobody does continuous improvement like the Japanese, they manage to squeeze every last drop of “problem” out of their vehicles.
by David Jay
Tue Nov 12, 2019 7:43 pm
Forum: Personal Investments
Topic: Roth IRA Rollover
Replies: 18
Views: 626

Re: Roth IRA Rollover

Since the amount discussed is merely $500 , my assertion is that in any case of such a distribution from Roth IRA, it will be neither taxed nor penalized as long as the lifetime Roth contributions amount to $500. IRS is very clear in their understanding of Roth distributions that previously made co...
by David Jay
Tue Nov 12, 2019 6:46 pm
Forum: Personal Investments
Topic: Roth IRA Rollover
Replies: 18
Views: 626

Re: Roth IRA Rollover

Since the amount discussed is merely $500 , my assertion is that in any case of such a distribution from Roth IRA, it will be neither taxed nor penalized as long as the lifetime Roth contributions amount to $500. IRS is very clear in their understanding of Roth distributions that previously made co...
by David Jay
Tue Nov 12, 2019 4:42 pm
Forum: Investing - Theory, News & General
Topic: The End Is Near....Isn't It ?
Replies: 27
Views: 2096

Re: The End Is Near....Isn't It ?

If you have a moderate AA, you won’t suffer a 30 or 40% drop. In 2008, if you had a 30/70 AA your drop would have been about 15%. As others have said, move your AA down a bit until you can hold it through a downturn. This in not the same as parking assets on the sideline, planning to get back in at ...
by David Jay
Tue Nov 12, 2019 3:55 pm
Forum: Personal Investments
Topic: Vanguard Index Funds vs Fidelity Managed Assets Program
Replies: 11
Views: 1114

Re: Vanguard Index Funds vs Fidelity Managed Assets Program

keep_the_change wrote:
Tue Nov 12, 2019 12:54 pm
The FMAP index plan has a fee of 1.47%...
:shock:
by David Jay
Tue Nov 12, 2019 2:47 pm
Forum: Personal Investments
Topic: Roth IRA Rollover
Replies: 18
Views: 626

Re: Roth IRA Rollover

I do not know where you are coming from. If one is under 59.5, there are clearly taxes and penalties on earnings, as well as penalties on taxable conversions that have not “aged out” (5 year clock). See the following text: source? What you wrote goes contrary to all existing knowledge about Roth wi...
by David Jay
Tue Nov 12, 2019 2:09 pm
Forum: Personal Investments
Topic: Roth IRA Rollover
Replies: 18
Views: 626

Re: Roth IRA Rollover

If you are not 59.5 then there is an immediate 10% penalty and likely taxes (depending on the various “clocks”). This is incorrect. No "clocks" apply, nor penalties and/or taxes, as long as the OP has contributed at least $500 to Roth IRA during his lifetime. I do not know where you are coming from...
by David Jay
Tue Nov 12, 2019 1:08 pm
Forum: Personal Investments
Topic: Roth IRA Rollover
Replies: 18
Views: 626

Re: Roth IRA Rollover

Note that it is only an indirect rollover if the funds come into your possession. If there is a direct custodian-to-custodian funds transfer then it is not an indirect rollover. You said it was an indirect rollover so my comments were based on an indirect rollover.
by David Jay
Tue Nov 12, 2019 1:05 pm
Forum: Personal Investments
Topic: Roth IRA Rollover
Replies: 18
Views: 626

Re: Roth IRA Rollover

I thought I would then do an indirect rollover by withdrawing the funds manually and redepositing at Merrill within 60 days. I wouldn’t do an indirect custodian transfer. One problem (lost check, you are incapacitated, etc.) and the entire amount is now in taxable with no recourse. Welcome to perma...
by David Jay
Tue Nov 12, 2019 12:07 pm
Forum: Personal Investments
Topic: Roth IRA Rollover
Replies: 18
Views: 626

Re: Roth IRA Rollover

I thought I would then do an indirect rollover by withdrawing the funds manually and redepositing at Merrill within 60 days. I wouldn’t do an indirect custodian transfer. One problem (lost check, you are incapacitated, etc.) and the entire amount is now in taxable with no recourse. Welcome to perma...
by David Jay
Tue Nov 12, 2019 10:54 am
Forum: Personal Investments
Topic: Vanguard Market Outlook
Replies: 9
Views: 1461

Re: Vanguard Market Outlook

...should I use 4.5% with a 3.3% inflation for a real return of 1.2%. Those 2 numbers (4.5 - 3.3) are too conservative. If we see 4-6% nominal it will be in a low-inflation environment. If inflation is 3.3% (far above recent years) then the Vanguard number is too low. More likely: 4.5 - 2.0 6 - 3.3
by David Jay
Tue Nov 12, 2019 9:52 am
Forum: Personal Investments
Topic: About to put $ in Fixed income, which one?
Replies: 16
Views: 1862

Re: About to put $ in Fixed income, which one?

As a new retiree, I keep everything I need to spend in the next 2 years in Prime MM. Beyond that (as my crystal ball is malfunctioning) my fixed income is in IT bonds.
by David Jay
Tue Nov 12, 2019 9:45 am
Forum: Investing - Theory, News & General
Topic: Rich people are hoarding cash
Replies: 153
Views: 22913

Re: Rich preparing for market drop

Maybe what's actually happening isn't that the wealthy are going to cash to hedge a stock market decline but rather going to cash to buy up when Sellers exit the market due to fears whipped up by these kinds of articles. Could you perhaps be saying something similar to: “In a bear market, stocks re...
by David Jay
Mon Nov 11, 2019 8:33 pm
Forum: Personal Investments
Topic: IRA Distribution and 403b contribution same year
Replies: 4
Views: 183

Re: IRA Distribution and 403b contribution same year

Alan S. wrote:
Mon Nov 11, 2019 3:31 pm
1) If you qualify for the savers credit, the IRA distributions must be subtracted from the 403b contributions in determining the amount of contributions eligible for the credit. In addition, the subtractions must continue for a 3+ year testing period.
Thanks, Alan. I missed that implication...
by David Jay
Mon Nov 11, 2019 3:19 pm
Forum: Personal Investments
Topic: Retirement Planning for Small Business Owners?
Replies: 4
Views: 239

Re: Retirement Planning for Small Business Owners?

Welcome to the forum. In addition to the forum, there is also a substantial amount of information available in the Wiki. There are ways to hold the taxable assets in (relatively) tax efficient ways. In particular, the Vanguard SP500 and Total Market funds have been distributing entirely qualified di...
by David Jay
Mon Nov 11, 2019 3:11 pm
Forum: Personal Investments
Topic: 5 fund portfolio
Replies: 10
Views: 1337

Re: 5 fund portfolio

Welcome to the forum. This is a reasonable portfolio as long as the REIT and gold percentages are kept low relative to the other three: 1. The REIT stocks are already included in Total Stock, so your REIT percentage is actually doubling up these companies. 2. And gold...what can I say? Some folks wa...
by David Jay
Mon Nov 11, 2019 3:05 pm
Forum: Personal Investments
Topic: IRA Distribution and 403b contribution same year
Replies: 4
Views: 183

Re: IRA Distribution and 403b contribution same year

Your personal IRA and the company-sponsored 403B are separate programs. There is no legal linkage between IRA withdrawals and 403B activities. Your plan is probably worth doing in the short term to get the match, but there is no real value in doing this to contribute to the 403B above the level of t...
by David Jay
Mon Nov 11, 2019 9:15 am
Forum: Personal Investments
Topic: Dad is looking to move money out of Fisher Investments...need advice
Replies: 16
Views: 2621

Re: Dad is looking to move money out of Fisher Investments...need advice

My dad is not currently collect social security. They are expecting to receive ~$40K to ~$50K a year between the two of them when they do start collecting (my dad is thinking of collecting when he's 68 and my mom may also wait longer to collect as well). If there is a significant difference in life...
by David Jay
Mon Nov 11, 2019 8:27 am
Forum: Personal Investments
Topic: TIPS and CD ladder combined?
Replies: 3
Views: 381

Re: TIPS and CD ladder combined?

...making the decision whether to purchase the next 5 year rung TIP or nominal/CD when each comes due, (thus moving my TIPS/nominal allocation 20% in either direction at time). I think this is the portion of your thinking that will be the most problematic. Almost every strategy of dynamically modif...
by David Jay
Sun Nov 10, 2019 11:32 pm
Forum: Personal Investments
Topic: Is it a good time to transfer my inflation protected securities balance to the S&P 500
Replies: 20
Views: 1561

Re: Is it a good time to transfer my inflation protected securities balance to the S&P 500

Hi Sara, welcome to the forum! At Bogleheads, we recommend setting an asset allocation (AA) based on your ability, willingness and need to take risk and then holding that AA regardless of changing market conditions. So many here would say: “Determine your AA first, then transfer a portion of your In...
by David Jay
Sun Nov 10, 2019 1:43 pm
Forum: Personal Investments
Topic: roth ira in 403b
Replies: 14
Views: 517

Re: roth ira in 403b

David Jay, I also wondered if this might be an after-tax account instead of Roth 403b, especially when renovator20 said there was no match. After thinking about it, I think it is more likely to be Roth 403b than an after-tax account, but that is just a guess. Yea, I am confident that someone has th...
by David Jay
Sun Nov 10, 2019 12:37 pm
Forum: Personal Investments
Topic: roth ira in 403b
Replies: 14
Views: 517

Re: roth ira in 403b

Since employer is offering a roth ira in 2020... This is where somebody (perhaps your friend) is mistaken. The initials I.R.A. stand for Individual Retirement Account. It is held by the individual, not by the employer. One cannot have an IRA inside a 403B. What I think is happening is that someone ...
by David Jay
Sun Nov 10, 2019 9:44 am
Forum: Personal Investments
Topic: roth ira in 403b
Replies: 14
Views: 517

Re: roth ira in 403b

If your friend is below the contribution income limit, he and his spouse can each contribute to a Roth (2019 limit is up to $6000).

This is completely separate from employer-sponsored contributions which have completely separate limits.
by David Jay
Sun Nov 10, 2019 9:32 am
Forum: Personal Investments
Topic: recharacterization of roth ira
Replies: 3
Views: 270

Re: recharacterization of roth ira

Welcome to the forum! Perhaps they were required to calculate the gains based on the highest earning asset in the account during that period as money is fungible. I don’t know. You probably need to contact Vanguard for an explanation. [edit] There you go, Alan S is one of the real experts here on th...
by David Jay
Sat Nov 09, 2019 11:07 pm
Forum: Personal Finance (Not Investing)
Topic: Missing Anything
Replies: 7
Views: 417

Re: Missing Anything

4. I will be maxing out the dependent care FSA next year. Just found out this year that our company offers this. A caution on “maxing out”, you should only withhold what you can reasonably expect to spend - there is a limit to the amount that can be rolled over at year end (seems to me it is $500, ...
by David Jay
Sat Nov 09, 2019 11:01 pm
Forum: Personal Investments
Topic: Talk Me Off the Active Investing Ledge!
Replies: 34
Views: 2056

Re: Talk Me Off the Active Investing Ledge!

And what is the AUM fee of the ”family advisor”? Don’t forget that will be deducted from your results every year.
by David Jay
Sat Nov 09, 2019 8:01 pm
Forum: Investing - Theory, News & General
Topic: Reduce Allocations
Replies: 8
Views: 918

Re: Reduce Allocations

Because you can freely move the funds around, I would put it in the 2025 fund and put all new contributions in the same fund. Keep an eye on it as you may want to move it every 5 years or so to keep it from getting too conservative.
by David Jay
Sat Nov 09, 2019 7:32 pm
Forum: Investing - Theory, News & General
Topic: Reduce Allocations
Replies: 8
Views: 918

Re: Reduce Allocations

Target Date funds are all moving to more conservative asset allocations over time. If you continue to hold your 2040 fund eventually it will end up at 30/70 (and be rolled into the “Target Income” fund where all TargetRetirement funds end up). The only difference between the Target Date funds is whe...
by David Jay
Sat Nov 09, 2019 3:48 pm
Forum: Investing - Theory, News & General
Topic: (NEW) WisdomTree 90/60 U.S. Balanced Fund
Replies: 325
Views: 34499

Re: (NEW) WisdomTree 90/60 U.S. Balanced Fund

This week’s chart is interesting: About a 5% drop (eyeballing the 5d chart) due to the drop in bond prices, showing the impact of leverage. I might be missing something here, but I see a 0.14% drop for the 5d chart? https://finance.yahoo.com/chart/NTSX#eyJpbnRlcnZhbCI6NSwicGVyaW9kaWNpdHkiOjEsInRpbW...
by David Jay
Sat Nov 09, 2019 10:22 am
Forum: Investing - Theory, News & General
Topic: (NEW) WisdomTree 90/60 U.S. Balanced Fund
Replies: 325
Views: 34499

Re: (NEW) WisdomTree 90/60 U.S. Balanced Fund

This week’s chart is interesting: About a 5% drop (eyeballing the 5d chart) due to the drop in bond prices, showing the impact of leverage.
by David Jay
Fri Nov 08, 2019 10:29 pm
Forum: Personal Investments
Topic: Talk Me Off the Active Investing Ledge!
Replies: 34
Views: 2056

Re: Talk Me Off the Active Investing Ledge!

BCG Active fund Performance: +97% 2019: 39.4% 2018: 1.1% 2017: 17.5% 2016: 19.2% 2015: -3.4% Russell Growth 1000 Index: + 71% 2019: 25% 2018: -1.7% 2017: 30% 2016: 6.92% 2015: 5.48% You do realize that the ENTIRE outperformance is for a partial year (2019)? The cumulative performance for 2015 throu...
by David Jay
Fri Nov 08, 2019 10:15 pm
Forum: Personal Investments
Topic: Talk Me Off the Active Investing Ledge!
Replies: 34
Views: 2056

Re: Talk Me Off the Active Investing Ledge!

mbenoit: Are you are you a qualified investor? If the 30 year old Stanford genius is not running a registered mutual fund, what is the form of his business?
by David Jay
Fri Nov 08, 2019 5:26 pm
Forum: Personal Investments
Topic: Ameriprise Simple IRA to IRA Strategy
Replies: 4
Views: 310

Re: Ameriprise Simple IRA to IRA Strategy

Trades at Vanguard are tiered based on the size of the account.

For an account with a balance under $50,000 trades are $25, if your account balance is over $50,000 the trades are $7.

I think I would recommend Schwab for your needs.