Search found 4015 matches

by David Jay
Mon Dec 11, 2017 11:21 pm
Forum: Investing - Theory, News & General
Topic: Roger Ibbotson and ZebraEdge Annuity
Replies: 1
Views: 126

Re: Roger Ibbotson and ZebraEdge Annuity

What are the fees? What are the caps? What is the participation rate? What is the calculation schedule? How long is the withdrawal penalty period? I will quote Jane Bryant Quinn: "Quinn's First Law of Investing is never to buy anything whose price you can't follow in the newspapers. Even when the pr...
by David Jay
Mon Dec 11, 2017 10:05 pm
Forum: Investing - Theory, News & General
Topic: Contribution to family member's IRA
Replies: 4
Views: 353

Re: Contribution to family member's IRA

Yeti wrote:
Mon Dec 11, 2017 11:35 am
This is assuming the the recipient party has sufficient income for earned income requirements and that they won't be over contributing for the year.
Remember that a spouse's income can also be used to meet the earned income requirements.
by David Jay
Mon Dec 11, 2017 9:55 pm
Forum: Investing - Help with Personal Investments
Topic: Stupid question about VTSAX
Replies: 6
Views: 846

Re: Stupid question about VTSAX

Both sides of the replies are correct in their own way. 1. The mutual fund invests your money in actual stocks, so you hold real assets. These assets are held by a third party so in the event of a mutual fund company failure you can recover your assets. 2. They are allowed to do some "adjustments" a...
by David Jay
Mon Dec 11, 2017 9:47 pm
Forum: Personal Consumer Issues
Topic: Snow Tires? Worth it?
Replies: 27
Views: 605

Re: Snow Tires? Worth it?

Random question for the group. I currently have 4 wheel drive Honda CRV with all season tires. However, we just moved to a cold weather location with longer winters and I have a longer commute now than before. My questions: -Does anyone recommend snow tires, even if a 4 wheel drive care? I have a w...
by David Jay
Mon Dec 11, 2017 12:16 pm
Forum: Investing - Theory, News & General
Topic: Small cap value vs. total market?
Replies: 10
Views: 775

Re: Small cap value vs. total market?

I don't think anyone will dispute that SCV has outperformed TSM over the last couple of decades. The real question is whether, due to publicity, it will continue to outperform in the future . Many outperforming "factors" have been identified, only to fade after they are identified and publicized. TS...
by David Jay
Mon Dec 11, 2017 12:02 pm
Forum: Investing - Help with Personal Investments
Topic: How to Achieve CAGR of 6% in non-taxable Acct?
Replies: 10
Views: 922

Re: How to Achieve CAGR of 6% in non-taxable Acct?

If this is for discretionary spending and you can choose to spend less in down years, then you can look at various withdrawal strategies: https://www.bogleheads.org/wiki/Withdrawal_methods One of these strategies is constant percentage withdrawal. You can withdraw, say, 5.5% of remaining portfolio b...
by David Jay
Mon Dec 11, 2017 11:23 am
Forum: Personal Consumer Issues
Topic: Where might be car security system "secret" button?
Replies: 9
Views: 758

Re: Where might be car security system "secret" button?

Purchasing a 2002 Camry.

A true Boglehead. :happy
by David Jay
Sun Dec 10, 2017 8:43 pm
Forum: Investing - Help with Personal Investments
Topic: New Investor Need advice
Replies: 16
Views: 767

Re: New Investor Need advice

@David Jay Thanks for your feedback. I will look into Target funds but wanted to have more control on waht funds being selected. The target funds are fully diversified, holding US stocks, International Stocks and bonds, all inside one "wrapper" that is rebalanced to keep the allocation on the sched...
by David Jay
Sun Dec 10, 2017 7:00 pm
Forum: Investing - Help with Personal Investments
Topic: New Investor Need advice
Replies: 16
Views: 767

Re: New Investor Need advice

I want to start funding my 401k right away. Should I go for specific funds or Index funds? One of the beauties of a 401K is that you are free to move allocation around over the years with no penalty. So you don't have to "decide forever" where to put your money. I would get the process started with...
by David Jay
Sat Dec 09, 2017 6:19 pm
Forum: Investing - Theory, News & General
Topic: TSM vs High Dividend Yield if I never choose to sell?
Replies: 36
Views: 2103

Re: TSM vs High Dividend Yield if I never choose to sell?

Wouldnt my dividends be taxed at 15%? The same as LT capital gains? [edited] [Unqualified] dividends are taxed at your current marginal rate. Capital gains [and qualified dividends] receive special treatment. Additionally, you are taxed on dividends when they are distributed , whether or not you se...
by David Jay
Sat Dec 09, 2017 5:27 pm
Forum: Investing - Theory, News & General
Topic: TSM vs High Dividend Yield if I never choose to sell?
Replies: 36
Views: 2103

Re: TSM vs High Dividend Yield if I never choose to sell?

1. If this is in taxable, taking your gains as dividends is not in your best interest. Capital gains are taxed at a lower rate and are delayed until time-of-sale. 2. TSM is far more diversified so it is likely to perform more consistently across a wide range of economic conditions. TSM has provided ...
by David Jay
Sat Dec 09, 2017 9:28 am
Forum: Investing - Help with Personal Investments
Topic: I don't know how it happened! [starting new business soon, how to avoid 1% AUM cost]
Replies: 14
Views: 1190

Re: I don't know how it happened! [retiring soon, how to avoid 1% AUM cost]

livesoft wrote:
Fri Dec 08, 2017 1:54 pm
David Jay wrote:
Fri Dec 08, 2017 1:27 pm
If you are 55 (or older) when you leave your current company, you can access the 401K assets without penalty.
This 401(k) age-55 thing is very plan dependent. The OP's 401(k) may or may not allow what you wrote.
I stand corrected. It is allowed by regulation but review your specific plan.
by David Jay
Fri Dec 08, 2017 1:27 pm
Forum: Investing - Help with Personal Investments
Topic: I don't know how it happened! [starting new business soon, how to avoid 1% AUM cost]
Replies: 14
Views: 1190

Re: I don't know how it happened! [retiring soon, how to avoid 1% AUM cost]

If you are 55 (or older) when you leave your current company, you can access the 401K assets without penalty. You will have to wait until 59.5 to access the Roth or a rollover IRA without penalty (yea I know: 72t, but that's pretty restrictive). This needs to be thought through before you roll over ...
by David Jay
Fri Dec 08, 2017 1:21 pm
Forum: Investing - Help with Personal Investments
Topic: Early Retirement Roth Conversion vs Healthcare Subsidies
Replies: 15
Views: 1084

Re: Early Retirement Roth Conversion vs Healthcare Subsidies

6 years in the future? I would monitor the situation for the next 5 years then come back and make a decision. Too many things can change. Agreed - all the variables needed to supply a valuable answer will change. I am 12-18 months from retirement and I don't know what my health care will look like ...
by David Jay
Fri Dec 08, 2017 12:40 pm
Forum: Personal Finance (Not Investing)
Topic: What do Bogleheads say when they don't want to spend money?
Replies: 103
Views: 5293

Re: What do Bogleheads say when they don't want to spend money?

I would have warned her that if she continued, then I would shut the door in her face. Then, if she continued, I would have shut the door in her face. That's what I wish I would've done... I should've warned her. Other than that, I've gotten over my guilt about the episode. When they keep going aft...
by David Jay
Fri Dec 08, 2017 12:17 pm
Forum: Investing - Help with Personal Investments
Topic: Making Best Use of Being in 15% Income Tax Bracket This Year
Replies: 22
Views: 2689

Re: Making Best Use of Being in 15% Income Tax Bracket This Year

I have about $60k in my traditional IRA now. I could convert it to Roth and pay the ~$20k I'd owe in taxes if I cashed out some of my taxable investment account (incurring additional taxes). Is there a good reason to do that though? I only understand the basics of Backdoor Roths. This is not a "bac...
by David Jay
Thu Dec 07, 2017 5:00 pm
Forum: Investing - Help with Personal Investments
Topic: Making Best Use of Being in 15% Income Tax Bracket This Year
Replies: 22
Views: 2689

Re: Making Best Use of Being in 15% Income Tax Bracket This Year

DrGoogle2017 wrote:
Thu Dec 07, 2017 4:50 pm
Can you convert IRA to Roth Penalty free if you are younger than 59.5?
Yes
by David Jay
Thu Dec 07, 2017 4:57 pm
Forum: Investing - Help with Personal Investments
Topic: Making Best Use of Being in 15% Income Tax Bracket This Year
Replies: 22
Views: 2689

Re: Making Best Use of Being in 15% Income Tax Bracket This Year

I have about $60k in my traditional IRA now. I could convert it to Roth and pay the ~$20k I'd owe in taxes if I cashed out some of my taxable investment account (incurring additional taxes). Is there a good reason to do that though? I only understand the basics of Backdoor Roths. This is not a "bac...
by David Jay
Thu Dec 07, 2017 4:49 pm
Forum: Investing - Theory, News & General
Topic: Bitcoin now the largest quantifiable bubble in history?
Replies: 88
Views: 6503

Re: Bitcoin now the largest quantifiable bubble in history?

In another one of the many bitcoin threads on bogleheads right now, someone said his teenage kid was asking if he could buy bitcoin. I suspect that the bubble will be popping soon. If teenagers are buying, then anyone who wants bitcoin already has it. I would say when grandmas or grandpas start buy...
by David Jay
Thu Dec 07, 2017 4:33 pm
Forum: Investing - Help with Personal Investments
Topic: First post from this retiree with questions - my daughter sent me here!
Replies: 34
Views: 3799

Re: First post from this retiree with questions - my daughter sent me here!

I am wondering why it has not been suggested that OP do some TIRA-Roth conversions. I can see one concern would be the Social Security "cliff", not an area that I have paid much attention to and not sure if disability social security is affected in the same way. Otherwise might not such a move make...
by David Jay
Wed Dec 06, 2017 3:45 pm
Forum: Investing - Theory, News & General
Topic: Unsolicited advice - 32 yo w/ 80% bonds, fixed income fund
Replies: 36
Views: 3102

Re: Unsolicited advice - 32 yo w/ 80% bonds, fixed income fund

Hugo9898 wrote:
Tue Dec 05, 2017 10:02 am
...he had a prominent, well off family friend look at and state this is exactly what i do...
If the well off family friend is just about retirement age, a 20/80 portfolio might make sense...for the family friend.
by David Jay
Wed Dec 06, 2017 3:42 pm
Forum: Personal Finance (Not Investing)
Topic: How do you know you are FI? [Financially Independent]
Replies: 48
Views: 3767

Re: How do you know you are FI?

To rephrase what others have said, it depends entirely on your expenses. When you have a portfolio that is 25X - 30X your annual living expenses, you have achieved FI.
by David Jay
Wed Dec 06, 2017 12:21 pm
Forum: Investing - Help with Personal Investments
Topic: Want to sell my Bitcoin, but when?
Replies: 88
Views: 7675

Re: Want to sell my Bitcoin, but when?

Interesting. A young coworker of mine purchased $7k in Bitcoin in (I believe) 2014 and it is now worth close to $250k. As far as I know, he plans to let it ride . Gambling does, on occasion, pay off. A reminder that it hasn't paid off yet... It has for some - those who have sold recently. I was ref...
by David Jay
Wed Dec 06, 2017 12:18 pm
Forum: Investing - Help with Personal Investments
Topic: A " Bond Tent" During the "Retirement Red Zone?"
Replies: 52
Views: 4583

Re: A " Bond Tent" During the "Retirement Red Zone?"

I want a hyper-simple portfolio my wife could manage, using just a single balanced fund like either Vanguard Balanced Index Fund Admiral Shares (VBIAX) or Vanguard LifeStrategy Moderate Growth (VSMGX). My "after I am gone" letter to my wife suggests that she put everything in LifeStrategy Moderate ...
by David Jay
Wed Dec 06, 2017 12:12 pm
Forum: Investing - Help with Personal Investments
Topic: ROTH 401K funds into plan with only 401K option
Replies: 5
Views: 275

Re: ROTH 401K funds into plan with only 401K option

My question is about what becomes of the after-tax ROTH 401K funds when they move over into the new plan that has a pre-tax 401K option? How are those funds now handled in a plan that has no ROTH 401K option for them to transfer directly into? David As "Watty" said, contact HR. But beyond that, bec...
by David Jay
Tue Dec 05, 2017 7:04 pm
Forum: Investing - Help with Personal Investments
Topic: A " Bond Tent" During the "Retirement Red Zone?"
Replies: 52
Views: 4583

Re: A " Bond Tent" During the "Retirement Red Zone?"

. . . If there are no contributions or withdrawals there is no sequence of returns phenomenon at all. Also, like most risk, the phenomenon can result in a benefit to the investor as much as a hazard. So if there is no anticipated withdrawal from retirement assets in early retirement, what asset all...
by David Jay
Tue Dec 05, 2017 6:50 pm
Forum: Investing - Help with Personal Investments
Topic: Want to sell my Bitcoin, but when?
Replies: 88
Views: 7675

Re: Want to sell my Bitcoin, but when?

Call_Me_Op wrote:
Sun Dec 03, 2017 8:28 am
Interesting. A young coworker of mine purchased $7k in Bitcoin in (I believe) 2014 and it is now worth close to $250k. As far as I know, he plans to let it ride.

Gambling does, on occasion, pay off.
A reminder that it hasn't paid off yet...
by David Jay
Tue Dec 05, 2017 6:46 pm
Forum: Personal Finance (Not Investing)
Topic: Why ORP-I suggests you spending down aft-tax saving 1st?
Replies: 29
Views: 2178

Re: Why ORP-I suggests you spending down aft-tax saving 1st?

WhiteMaxima wrote:
Tue Dec 05, 2017 4:04 pm
Let say someone choose to take SS at 70.5
Then he has lost 6 months worth of SS payments - there is no benefit to delay past age 70
by David Jay
Tue Dec 05, 2017 2:38 pm
Forum: Investing - Theory, News & General
Topic: Smooth Glide Paths with Logistic Functions
Replies: 5
Views: 345

Re: Smooth Glide Paths with Logistic Functions

There has been a fair amount of discussion here recently about increasing equity allocation in later retirement. The goal is to minimize sequence-of-risk in the early retirement years while providing portfolio growth. Here is a link to a recent thread, which (in the first post) links to a Kitces pos...
by David Jay
Tue Dec 05, 2017 1:10 pm
Forum: Investing - Help with Personal Investments
Topic: REIT Index -- Vanguard vs Fidelity?
Replies: 9
Views: 858

Re: REIT Index -- Vanguard vs Fidelity?

It could certainly be true. 1. Your 401K is with Fidelity, so they charge a transaction fee to purchase (what are for them) 3rd party funds. 2. I have not seen a case where another custodian can offer Vanguard Admiral class funds, Fidelity is offering the Investor class of fund with a 0.26% ER. The ...
by David Jay
Tue Dec 05, 2017 12:40 pm
Forum: Personal Finance (Not Investing)
Topic: Parents Retirement
Replies: 13
Views: 1758

Re: Parents Retirement

Dottie57 wrote:
Tue Dec 05, 2017 7:57 am
An annuity at 63/64. would pay about $600k a month for $150k
I'm in! :wink:
by David Jay
Mon Dec 04, 2017 3:42 pm
Forum: Personal Consumer Issues
Topic: Should I consider a travel Credit Card?
Replies: 30
Views: 2110

Re: Should I consider a travel Credit Card?

Should I start considering a travel credit card instead of the 2% cash back one? And if so, which one would at least break-even if I replaced my card for it? I would not travel with only 1 credit card. I was traveling when I started getting bogus charges on my card. The credit card company insisted...
by David Jay
Mon Dec 04, 2017 3:36 pm
Forum: Investing - Help with Personal Investments
Topic: A " Bond Tent" During the "Retirement Red Zone?"
Replies: 52
Views: 4583

Re: A " Bond Tent" During the "Retirement Red Zone?"

...wondered whether others close to or in the early years of retirement have taken similar measures during the "Retirement Red Zone"? I intend to have 100% of my living expenses from retirement (age 62) to SS in bonds prior to retiring within the next 12-16 months. I will spend down a good portion ...
by David Jay
Mon Dec 04, 2017 2:10 pm
Forum: Investing - Help with Personal Investments
Topic: A " Bond Tent" During the "Retirement Red Zone?"
Replies: 52
Views: 4583

Re: A " Bond Tent" During the "Retirement Red Zone?"

There is an assumption in the Kitces article that funds are withdrawn in early retirement to maintain a certain living standard. If social security and pension funds will support that standard of living in retirement, does the bond tent strategy still make sense? I would say "no". If one is not mak...
by David Jay
Sun Dec 03, 2017 10:33 pm
Forum: Forum Issues and Administration
Topic: Is it time to put limit of max 99 active Bitcoin topics?
Replies: 9
Views: 772

Re: Is it time to put limit of max 99 active Bitcoin topics?

Eric76 wrote:
Sun Dec 03, 2017 9:35 pm
The sheer number of Bitcoin threads on BH is itself overwhelming evidence of a massive bubble.
+1
by David Jay
Sat Dec 02, 2017 10:57 pm
Forum: Investing - Theory, News & General
Topic: S&P 500 vs Vanguard Total World
Replies: 3
Views: 638

Re: S&P 500 vs Vanguard Total World

Sectors are up and down, large company US has done well over the last 5 years. I like the Callen Periodic Table to remind myself that sectors rotate, link here: https://www.callan.com/wp-content/uploads/2017/01/Callan-PeriodicTbl_KeyInd_2017.pdf What will outperform in the future? See the first quot...
by David Jay
Sat Dec 02, 2017 10:34 pm
Forum: Investing - Theory, News & General
Topic: Vanguard Total Corporate Bond ETF (VTC)
Replies: 17
Views: 2169

Re: Vanguard Total Corporate Bond ETF (VTC)

I just have not read any discussions of this on the other threads. The only other corporate bonds I read that some people use here is the ST ones (VCSH). Corporate Intermediate Term (VCIT as an ETF) is an intermediate term (like BND) fund, it holds investment grade corporates. That is what I use to...
by David Jay
Sat Dec 02, 2017 2:13 pm
Forum: Investing - Theory, News & General
Topic: Fama - Embrace passive management already
Replies: 16
Views: 2425

Re: Fama - Embrace passive management already

mickeyd wrote:
Sat Dec 02, 2017 2:08 pm
Timing is even more subject to error than picking individual securities.
Can't mention this too darn often.
Yup, I like the way Bernstein puts it in "Deep Risk":
"...mistiming the market is probably the most frequent and severe form of permanent capital loss."
by David Jay
Sat Dec 02, 2017 1:52 pm
Forum: Investing - Help with Personal Investments
Topic: The 4% rule, Firecalc and Human Nature
Replies: 86
Views: 5776

Re: The 4% rule, Firecalc and Human Nature

For all my finite planning, I find that my retirement spreadsheet goes from "need to watch expenses" to "how are we going to give it all away"' merely by changing my portfolio growth assumption by 1% (from 2% real to 3% real). That is teaching me that "good enough" is good enough. Have a plan and be...
by David Jay
Thu Nov 30, 2017 9:53 pm
Forum: Investing - Help with Personal Investments
Topic: retirement strategy
Replies: 24
Views: 2639

Re: retirement strategy

Over your retirement horizon (say 30 years), higher stock allocation will almost certainly provide higher returns. Higher bond allocation will provide lower volatility. You have to look at your comfort level, but 65/35 is not unreasonable. I am looking at a 70/30 for my "legacy" (I.e. Inheritance) f...
by David Jay
Thu Nov 30, 2017 1:48 pm
Forum: Personal Consumer Issues
Topic: Older Software Engineer Advice ~ Languages?
Replies: 41
Views: 3257

Re: Older Software Engineer Advice ~ Languages?

. FORTRAN IV!! Yes, indeed. Those were the days (long gone, I'm afraid). :( Gone but not forgotten. My very first computer book ever (Donald H. Ford's "Basic FORTRAN IV Programming", copyright 1971) still occupies a place of honor on my bookshelf, right next to Daniel D. McCracken's "A Guide to FOR...
by David Jay
Wed Nov 29, 2017 10:37 am
Forum: Investing - Help with Personal Investments
Topic: Is the Market Expensive?
Replies: 18
Views: 1528

Re: Is the Market Expensive?

Also, are any of you concerned about investing in BND with the rising interest rates? The biggest ever one-year drop in the Vanguard Total Bond Fund (BND is the ETF class of this fund) is 2.66% (in 1994). Is that "concerning" to you? What is your time horizon? If you plan to withdraw these funds wi...
by David Jay
Tue Nov 28, 2017 9:16 pm
Forum: Investing - Theory, News & General
Topic: What would trigger the NEXT market meltdown?
Replies: 19
Views: 1560

Re: What would trigger the NEXT market meltdown?

See the first quotation in my signature below.
V V V
by David Jay
Mon Nov 27, 2017 10:26 pm
Forum: Investing - Help with Personal Investments
Topic: Annuity Exit Strategy Help Requested: Wife’s ROTH IRA – Allianz 222 Fixed Index Annuity – Stay or go? How?
Replies: 34
Views: 2039

Re: Annuity Exit Strategy Help Requested: Wife’s ROTH IRA – Allianz 222 Fixed Index Annuity – Stay or go? How?

I just rip the Band-Aid off, throw it in the trash, and move on when I don't need it anymore. That's what I would do. A few years from now you will look back and realize it was a cheap lesson because you learned to invest the Boglehead way. Don't beat yourself up. Almost all of us have made investi...
by David Jay
Mon Nov 27, 2017 8:29 pm
Forum: Investing - Help with Personal Investments
Topic: Number of Roth Conversions in a year
Replies: 7
Views: 414

Re: Number of Roth Conversions in a year

The Wizard wrote:
Mon Nov 27, 2017 8:02 pm
David Jay wrote:
Mon Nov 27, 2017 7:52 pm
What tax complications?
I did a Backdoor Roth contribution of $6500 in 2016 and had a gain of $211 in the tIRA before the conversion to Roth.
So I paid a small tax on that gain.
It wasn't too painful...
Except the account in question is a Roth 401K (post tax), not a tIRA (pre-tax).
by David Jay
Mon Nov 27, 2017 7:25 pm
Forum: Investing - Help with Personal Investments
Topic: Inheriting a large sum, slightly intimidated.
Replies: 51
Views: 5117

Re: Inheriting a large sum, slightly intimidated.

My plan is max out my Ira and boost my emergency fund, then move on to taxable. You will also want to max-out your employer's plan (403b, etc.). You want to convert as much of your portfolio as possible to tax-advantaged space. Typically you are allowed to contribute $24,000 a year. Spend $24,000 o...
by David Jay
Mon Nov 27, 2017 7:18 pm
Forum: Investing - Theory, News & General
Topic: CNBC says Vanguard says 70% Chance of "Correction"
Replies: 63
Views: 7742

Re: CNBC says Vanguard says 70% Chance of "Correction"

In the immortal words of Keynes or Friedman (forgot which one) paraphrasing, "It is the DUTY of the equity investor to lose money from time to time". Note he said DUTY and not unlucky or something in that vain. One is expected to lose money when holding equities from time to time. I like the Rockef...
by David Jay
Mon Nov 27, 2017 7:00 pm
Forum: Investing - Help with Personal Investments
Topic: Breaking point time/duration until market crash for DCA vs Lump Sum
Replies: 12
Views: 1048

Re: Breaking point time/duration until market crash for DCA vs Lump Sum

Thanks for the replies and for making things clearer - I did not realize that I was subconsciously trying to time the market in all these micro moves/decisions . In some way, I knew I was, but as you all have correctly pointed out that it's just market timing, then I'm brought back to Bogleheads In...
by David Jay
Mon Nov 27, 2017 6:48 pm
Forum: Investing - Help with Personal Investments
Topic: Avoid tax on Roth earnings
Replies: 9
Views: 943

Re: Avoid tax on Roth earnings

I can confirm on question 2 - 59.5 and (any) Roth open for more than 5 years, no taxation on any withdrawals.

(for Semantics only, funds going from a tIRA to a Roth are conversions, not recharacterizations).