Search found 9149 matches

by David Jay
Mon Sep 28, 2020 9:08 pm
Forum: Personal Investments
Topic: Investing order
Replies: 10
Views: 699

Re: Investing order

401k's require age 59.5 age for non penalty withdrawals. 403b has a provision where there is no penalty if you separate from your employer after age 55. 401k also follows the "Rule of 55". See Topic No. 558 Additional Tax on Early Distributions from Retirement Plans Other than IRAs | Internal Reven...
by David Jay
Mon Sep 28, 2020 7:33 pm
Forum: Personal Investments
Topic: Investing order
Replies: 10
Views: 699

Re: Investing order

Being in the 12% tax bracket I would put it all in a Roth. If you get up in the higher brackets then it might make sense to put it in traditional. Unless your 401k/403b have high fees in them, it wouldn't be necessary to invest in your IRA unless you start maxing it out. I mostly agree, I would go ...
by David Jay
Mon Sep 28, 2020 4:43 pm
Forum: Personal Finance (Not Investing)
Topic: Traditional vs Roth - Is this a factor?
Replies: 7
Views: 545

Re: Traditional vs Roth - Is this a factor?

If the government wanted to increase receipts, they could eliminate all tax-deferred savings plans and only allow after-tax plans (Roth 401K, etc). That would result in a huge, immediate (but short term, perhaps 10-15 years) increase in revenue.
by David Jay
Mon Sep 28, 2020 4:25 pm
Forum: Personal Finance (Not Investing)
Topic: Traditional vs Roth - Is this a factor?
Replies: 7
Views: 545

Re: Traditional vs Roth - Is this a factor?

I am not getting your point, why do I care about the Government's income? Are you concerned that the benefit to the government could affect Washington DC decision making with regard to inflation, etc? That aside, here are a few points on your formulas: 1. There is no utility function for the time va...
by David Jay
Mon Sep 28, 2020 3:46 pm
Forum: Personal Investments
Topic: is this market timing? or better
Replies: 21
Views: 1358

Re: is this market timing? or better

I just hate buying at all time highs :( As others have said, this thinking is the root of your problem. An analogy can be made to taking a cross country trip (let's say from NY to CA). Every minute you drive, you are further west than you ever have been. Should you go back to NY and start over beca...
by David Jay
Mon Sep 28, 2020 12:55 pm
Forum: Investing - Theory, News & General
Topic: 401(k) Plan Documents
Replies: 2
Views: 188

Re: 401(k) Plan Documents

It’s not just words, there are actual costs associated with running 401K plans.

And actual costs associated with changing “words” (post-tax 401K plans are relatively recent offerings).
by David Jay
Mon Sep 28, 2020 9:02 am
Forum: Investing - Theory, News & General
Topic: Are we NOW in a bubble?
Replies: 66
Views: 6205

Re: Are we NOW in a bubble?

I found the article less generic than your dismissal of it. Can you be more specific? For example, why is this chart from the Financial Times just "noise"? I am not the poster, but these articles are “noise” because they are not actionable in any real sense (see Nisiprius’ first post). They may be ...
by David Jay
Sun Sep 27, 2020 9:01 pm
Forum: Personal Consumer Issues
Topic: Anchors screws - over time do they get loose ???
Replies: 15
Views: 1532

Re: Anchors screws - over time do they get loose ???

I mistakenly thought that these anchors are rated for more than enough weight and give me the ability to attach anywhere. The anchors are rated for a lot of weight. The published ratings are “static” - like for hanging a painting where there is no motion. Curtains being opened and closed creates mo...
by David Jay
Sun Sep 27, 2020 1:18 pm
Forum: Personal Finance (Not Investing)
Topic: Possible error in backdoor Roth IRA conversion
Replies: 9
Views: 315

Re: Possible error in backdoor Roth IRA conversion

1. I think your contributions are OK, if you take one $6000 as a 2019 contribution and the second as a 2020 contribution. This may require amending your 2019 Form 8606. 2. I am not a expert on this, but my guess is that the funds coming out of your tIRA will be seen as a distribution, which is a tax...
by David Jay
Sun Sep 27, 2020 12:59 pm
Forum: Personal Finance (Not Investing)
Topic: Possible error in backdoor Roth IRA conversion
Replies: 9
Views: 315

Re: Possible error in backdoor Roth IRA conversion

Welcome to the forum! ...and then transferred that amount next day to my spouse's Roth IRA. This step is clearly not allowed, Individual Retirement Accounts are, as the name states, individual . You cannot co-mingle your IRAs with her IRAs. I don’t know the precise steps, but you will likely have to...
by David Jay
Sat Sep 26, 2020 9:44 pm
Forum: Investing - Theory, News & General
Topic: Does the three fund portfolio provide adequate protection from inflation?
Replies: 47
Views: 3039

Re: Does the three fund portfolio provide adequate protection from inflation?

There is almost always a better portfolio than the portfolio you hold when viewed in retrospect. The problem is knowing in advance what challenges one’s portfolio will face. Author William Bernstein has written a short booklet entitled “Deep Risk” where he looks at his “4 horseman of the apocalypse...
by David Jay
Sat Sep 26, 2020 4:14 pm
Forum: Personal Investments
Topic: Roth IRA Withdrawal Questions
Replies: 5
Views: 431

Re: Roth IRA Withdrawal Questions

easy is good
by David Jay
Sat Sep 26, 2020 2:05 pm
Forum: Personal Investments
Topic: Roth IRA Withdrawal Questions
Replies: 5
Views: 431

Re: Roth IRA Withdrawal Questions

I know the Roth withdrawal order is contributions first, then conversions, and then interest. If I add this new conversion to the existing Roth it’s possible I might need to withdraw it before five years, thereby incurring a penalty. All your withdrawals are now qualified. For you, there are no lon...
by David Jay
Fri Sep 25, 2020 8:25 pm
Forum: Personal Investments
Topic: 403b options- equally-weighted fund
Replies: 4
Views: 280

Re: 403b options- equally-weighted fund

If the load is under 1%, I would use the SP500 fund. An equally weighted fund incurs too much risk of under-performing the market (just a handful of companies account for most of the index growth in any given year).
by David Jay
Fri Sep 25, 2020 5:19 pm
Forum: Personal Investments
Topic: Were mutual fund share numbers rounded down when transferring from Vanguard to Merrill Edge?
Replies: 13
Views: 614

Re: Were mutual fund share numbers rounded down when transferring from Vanguard to Merrill Edge?

For context, for assets to be transferable they have to be held at DTC. There are 2 systems. Stocks and bonds are held are held in one system. These are whole shares. Fractional shares are a accounting invention of the brokerage houses. So not formally recognized. Mutual funds by contrast are "netw...
by David Jay
Fri Sep 25, 2020 9:58 am
Forum: Personal Investments
Topic: Were mutual fund share numbers rounded down when transferring from Vanguard to Merrill Edge?
Replies: 13
Views: 614

Re: Were mutual fund share numbers rounded down when transferring from Vanguard to Merrill Edge?

Only full shares are transferred. Is this due to the specific circumstances of this case? I often gift shares on an "in kind" basis and fractional shares have always transferred. In my case it is always from one Vanguard account to another Vanguard account. Your case is not a transfer between broke...
by David Jay
Fri Sep 25, 2020 8:46 am
Forum: Personal Investments
Topic: Were mutual fund share numbers rounded down when transferring from Vanguard to Merrill Edge?
Replies: 13
Views: 614

Re: Were mutual fund share numbers rounded down when transferring from Vanguard to Merrill Edge?

Only full shares are transferred. Any fractional shares are sold and the money placed in your account. It may take a month or more for everything (dividends, etc.) to settle out.
by David Jay
Thu Sep 24, 2020 8:13 am
Forum: Personal Investments
Topic: 403b rollover
Replies: 1
Views: 127

Re: 403b rollover

Welcome to your first post! Without question, roll over into a 401k. It is hard to come up with a situation where one should make taxable distributions (Roth conversion or withdrawal) when in the top tax bracket. The math is very simple: tax rate at time of contribution versus tax rate at time of di...
by David Jay
Thu Sep 24, 2020 7:32 am
Forum: Personal Consumer Issues
Topic: Small Travel Trailer Advise needed
Replies: 44
Views: 2492

Re: Small Travel Trailer Advise needed

Remember, you are going to load it up with “stuff”. The Highlander is a capable tow vehicle but I think you are wise to keep the empty weight to about 3500.
by David Jay
Tue Sep 22, 2020 10:15 pm
Forum: Personal Consumer Issues
Topic: Attend COVID Wedding?
Replies: 22
Views: 2067

Re: Attend COVID Wedding?

I think it is way too early to decide not to go. Nine months is a long time. Think back 9 months. How many of your plans (as of December, 2019) are unchanged? What if there is a widely available vaccine in the Spring (corona virus task force members are saying April for widespread distribution)? The...
by David Jay
Tue Sep 22, 2020 9:46 pm
Forum: Personal Finance (Not Investing)
Topic: Correct Social Security benefit for widow?
Replies: 7
Views: 930

Re: Correct Social Security benefit for widow?

Is the idea that in a situation like this, the new benefit amount for the widow becomes roughly equivalent to the old benefit amount for the deceased husband and the old benefit amount for the widow just goes away ? Well, as you can see, it doesn't actually "go away" according to SSA. But yes, the ...
by David Jay
Tue Sep 22, 2020 6:51 pm
Forum: Personal Investments
Topic: Portfolio Review Question(s)
Replies: 18
Views: 1382

Re: Portfolio Review Question(s)

A few comments: Should I focus on building a cash reserve in a money market fund for required minimum distribution from now or at least 4 years from now for RMD in year 2027? I think it is too early, especially in the current low-interest-rate environment. I would recommend waiting 2 years and then ...
by David Jay
Tue Sep 22, 2020 11:32 am
Forum: Personal Investments
Topic: Should I Add Another Fund to My Roth IRA?
Replies: 12
Views: 854

Re: Should I Add Another Fund to My Roth IRA?

This thread discusses the so-called "one fund portfolio" - like your TargetRetirement 2060: viewtopic.php?t=287967
by David Jay
Tue Sep 22, 2020 11:26 am
Forum: Investing - Theory, News & General
Topic: How will VBTLX do considering the FED stimulus, low rates and $23T Gov debt
Replies: 11
Views: 899

Re: How will VBTLX do considering the FED stimulus, low rates and $23T Gov debt

You are looking at current yields to Total Bond and projecting out 30 years. Total Bond may have low yield for 2-3 years, but the economy will recover and bond yields to look more like historic performance. Using the current conditions as a benchmark for the next 30 years is creating unnecessary ang...
by David Jay
Tue Sep 22, 2020 11:14 am
Forum: Personal Finance (Not Investing)
Topic: Correct Social Security benefit for widow?
Replies: 7
Views: 930

Re: Correct Social Security benefit for widow?

Looks correct . I believe the reason why the amount is slightly more than his old benefit is because there is only one Medicare withholding. BTW - the SSA officially maintains the widow(er)s "personal" benefit and provides an adder to get up to the higher earning spouse's previous benefit. That is ...
by David Jay
Tue Sep 22, 2020 11:03 am
Forum: Personal Investments
Topic: Money Market Yield Question
Replies: 5
Views: 526

Re: Money Market Yield Question

SEC yield is after expenses. That being said, all Money Market funds are headed towards zero due to low interest rates. At this point, who knows which accounts will handle the new, low interest rate regime best. Moving money around over the next 3-6 months for a tenth or two of one percentage point ...
by David Jay
Mon Sep 21, 2020 3:48 pm
Forum: Personal Investments
Topic: Contemplating retiring in about a year: are we ready?
Replies: 9
Views: 2391

Re: Contemplating retiring in about a year: are we ready?

Simple answer: YES.

You will have over $13,000 (6.9K + 2.6K + 3.6K) a month coming in with pensions COLA adjusted. The C.R.T. is dropping but SS kicks in after 7 years, almost the same as the trust if you include spousal.

And you have a million some in retirement assets for "contingencies".
by David Jay
Mon Sep 21, 2020 8:11 am
Forum: Personal Finance (Not Investing)
Topic: refi vs reverse mortgage for new retiree (and other questions)
Replies: 8
Views: 555

Re: refi vs reverse mortgage for new retiree (and other questions)

After doing some “back of the napkin” calculations, here is how I would proceed if you are dead set against withdrawing more than $13,000 a year (I don’t believe this is the best choice): 1. Put $25,000 on the mortgage ($20,000 from Roth, $5000 from checking). This lowers the balance to lower the pa...
by David Jay
Sun Sep 20, 2020 8:50 pm
Forum: Personal Finance (Not Investing)
Topic: refi vs reverse mortgage for new retiree (and other questions)
Replies: 8
Views: 555

Re: refi vs reverse mortgage for new retiree (and other questions)

I agree with others who suggest this is too much house for her income level. It will be tough. Anything over that she would be paying about 10% or 12% tax in order to save 4.5% mortgage interest which I'm assuming doesn't make sense? This statement confuses the math. You are comparing a one-time 12%...
by David Jay
Sun Sep 20, 2020 2:40 pm
Forum: Personal Finance (Not Investing)
Topic: refi vs reverse mortgage for new retiree (and other questions)
Replies: 8
Views: 555

Re: refi vs reverse mortgage for new retiree (and other questions)

1. If she wants to stay in this house, I'm thinking the primary options are to refinance or get a reverse mortgage. I disagree. She is mortgage-poor. She doesn’t need a different mortgage, she needs to pay it off. Then SS meets her needs. How to convert 401k/IRA money to mortgage payoff? That is th...
by David Jay
Fri Sep 18, 2020 5:52 pm
Forum: Personal Investments
Topic: Over-contributed to ROth IRA
Replies: 9
Views: 868

Re: Over-contributed to ROth IRA

I was thinking about TurboTax as well , especially since my accountant is brushing me off since February about the over-contribution for the past few years. I will look into Turbo Tax now. What is the "best" software on the market now? Can it handle SOLO (401) K contributions? They have various lev...
by David Jay
Fri Sep 18, 2020 1:41 pm
Forum: Personal Investments
Topic: Roth Ira and ROth Solo 401k
Replies: 18
Views: 962

Re: Roth Ira and ROth Solo 401k

On another thread there was a link to Fidelity's Solo 401K calculator to determine how much one can contribute to an individual 401K: https://scs.fidelity.com/products/mobil ... bile.shtml

Note that one of the fields is “net business profit”.
by David Jay
Fri Sep 18, 2020 8:26 am
Forum: Personal Investments
Topic: Unwinding professional investment management
Replies: 9
Views: 923

Re: Unwinding professional investment management

PaunchyPirate wrote: Fri Sep 18, 2020 7:55 am Before you pull the plug to initiate your change, do your best to download/print out any relevant data (trade confirmations, monthly statements, tax forms, etc.) from your current account holdings that you may need for ongoing tax filing.
That’s a great recommendation!
by David Jay
Thu Sep 17, 2020 9:09 pm
Forum: Personal Investments
Topic: Unwinding professional investment management
Replies: 9
Views: 923

Re: Unwinding professional investment management

Welcome to the forum. We are a bunch of self-managed investors, so you will fit right in. When it comes to transfers, we always recommend that you work with the institution receiving the funds as they have the incentive to make sure things go smoothly. We recommend a full-line (I.e. they have a full...
by David Jay
Thu Sep 17, 2020 6:15 pm
Forum: Personal Investments
Topic: Over-contributed to ROth IRA
Replies: 9
Views: 868

Re: Over-contributed to ROth IRA

NoRisk wrote: Thu Sep 17, 2020 10:48 amWhat do you say about the situation?
TurboTax program (HR Block, TaxAct, etc.) doesn't make those kinds of mistakes and is a lot less expensive.
by David Jay
Thu Sep 17, 2020 4:36 pm
Forum: Investing - Theory, News & General
Topic: Inversely Correlated Investments with the Greatest Spread?
Replies: 19
Views: 1038

Re: Inversely Correlated Investments with the Greatest Spread?

Portfolio diversification comes from uncorrelated assets, not from inversely correlated assets. If the stock market, over the long term has historically always gone up, something with inverse correlation would have always gone down. Not something you want to hold as part of any long term portfolio....
by David Jay
Thu Sep 17, 2020 4:30 pm
Forum: Personal Finance (Not Investing)
Topic: Offshore Bank Account?
Replies: 24
Views: 2776

Re: Offshore Bank Account?

Safety from what? The answers to “which bank, which country” are different based on your safety concerns. Confiscation by the government? Collapse of the FDIC? Inability to physically get to the bank (bodily danger)? Internet infrastructure collapse? What currency do you wish to hold, USD or the cu...
by David Jay
Thu Sep 17, 2020 3:19 pm
Forum: Investing - Theory, News & General
Topic: Inversely Correlated Investments with the Greatest Spread?
Replies: 19
Views: 1038

Re: Inversely Correlated Investments with the Greatest Spread?

Portfolio diversification comes from uncorrelated assets, not from inversely correlated assets. If the stock market, over the long term has historically always gone up, something with inverse correlation would have always gone down. Not something you want to hold as part of any long term portfolio. ...
by David Jay
Thu Sep 17, 2020 9:43 am
Forum: Personal Consumer Issues
Topic: Cost of Propane Air Conditioning on House
Replies: 12
Views: 911

Re: Cost of Propane Air Conditioning on House

Have you seen the historic electric bills for the home? How do the winter and summer bills compare? Are the bills really that much higher in the summer? 80s in the daytime is not a huge AC load (compared to, say, Phoenix). What is your time-frame on the solar implementation (how many years would you...
by David Jay
Thu Sep 17, 2020 7:24 am
Forum: Investing - Theory, News & General
Topic: Inversely Correlated Investments with the Greatest Spread?
Replies: 19
Views: 1038

Re: Inversely Correlated Investments with the Greatest Spread?

What’s your goal?

Holding a product and the inverse is not a winning strategy. If it was, you could just buy TQQQ and sell TQQQ short. What would that achieve?
by David Jay
Wed Sep 16, 2020 7:27 pm
Forum: Investing - Theory, News & General
Topic: Can VTSAX accidentally sell all its stock holdings?
Replies: 47
Views: 3798

Re: Can VTSAX accidentally sell all its stock holdings?

palanzo wrote: Tue Sep 15, 2020 9:59 pm
Brianmcg321 wrote: Tue Sep 15, 2020 9:52 pm It’s not like they have a “liquidate everything” button.

If they did surely they would have a pop up stating “Are you sure” “Yes/No”. Lol
Yes, but it's running on Win 98 with a Cobol backend!
Funny, but I trust the Cobol back-end (W98, not so much...)
by David Jay
Wed Sep 16, 2020 8:10 am
Forum: Investing - Theory, News & General
Topic: You are probably invested in Bitcoin now
Replies: 36
Views: 3002

Re: You are probably invested in Bitcoin now

Serious disconnect here - 1. MSTR has a market cap of $30 Million $1.5B And you’ll note the stock skyrocketed on this announcement Okay, but the point remains that from the data of Nisi’s search tool (Q-2?), MSTR had some $400M in invested assets and a $30M market cap. Not exactly a ringing endorse...
by David Jay
Tue Sep 15, 2020 9:15 pm
Forum: Investing - Theory, News & General
Topic: You are probably invested in Bitcoin now
Replies: 36
Views: 3002

Re: You are probably invested in Bitcoin now

Serious disconnect here -

1. MSTR has a market cap of $30 Million

2. MSTR claims to hold $400 Million worth of Bitcoin

Perhaps the bitcoin holding has a “discounted valuation”?
by David Jay
Tue Sep 15, 2020 8:10 pm
Forum: Investing - Theory, News & General
Topic: tax investment zone?
Replies: 5
Views: 348

Re: tax investment zone?

What accreditation does this “tax advisor” have? EA? CPA?
by David Jay
Tue Sep 15, 2020 7:55 pm
Forum: Investing - Theory, News & General
Topic: tax investment zone?
Replies: 5
Views: 348

Re: tax investment zone?

immisaki wrote: Tue Sep 15, 2020 7:24 pm He has also offered to invest them for me.
Of course he did...
by David Jay
Tue Sep 15, 2020 7:51 pm
Forum: Personal Investments
Topic: Throwing In The Towel on Portfolio Management
Replies: 61
Views: 7868

Re: Throwing In The Towel on Portfolio Management

I am putting all accounts (one tIRA and two Roth) into a LifeStrategy fund because my spouse can continue to hold that “forever”.

So no “gasp” from me.
by David Jay
Tue Sep 15, 2020 7:31 pm
Forum: Personal Investments
Topic: Roth Ira and ROth Solo 401k
Replies: 18
Views: 962

Re: Roth Ira and ROth Solo 401k

You have been told 4 times, you just don’t want to hear it: W-2 income is never “self employment” income.

https://www.bogleheads.org/wiki/Solo_401(k)_plan
by David Jay
Tue Sep 15, 2020 4:04 pm
Forum: Personal Investments
Topic: How much to invest in Fund that has guaranteed 4% return?
Replies: 19
Views: 2640

Re: How much to invest in Fund that has guaranteed 4% return?

What is your stage of life? 4% is a superb rate at this time but it is not a great historic rate. A good intermediate bond fund has historically outperformed 4%. So it is a great fund to take advantage of at this time but I would not foreclose other alternatives (think surging inflation). I would al...
by David Jay
Tue Sep 15, 2020 3:55 pm
Forum: Personal Investments
Topic: Inherited IRA and SECURE act
Replies: 8
Views: 878

Re: Inherited IRA and SECURE act

I would put 5 years in BND (no money intended for withdrawal within 5 years should be in stocks) and 5 years in an LS fund that matches your overall Asset Allocation.

Move 10% from LS to BND each of the next 5 years.