Search found 4374 matches

by David Jay
Mon Feb 19, 2018 10:17 pm
Forum: Investing - Help with Personal Investments
Topic: Flexible Premium Deferred Annuities
Replies: 4
Views: 255

Re: Flexible Premium Deferred Annuities

Has anyone heard the concept of using a flex deferred annuity in a Bucket Strategy for Bucket 1 or 2? Not sure I am buying into this idea ? First google result for “flex deferred annuity”: Flexible premium deferred variable annuity Go to the Wiki for lots of information on Variable Annuities
by David Jay
Mon Feb 19, 2018 10:13 pm
Forum: Investing - Help with Personal Investments
Topic: Flexible Premium Deferred Annuities
Replies: 4
Views: 255

Re: Flexible Premium Deferred Annuities

Sounds like a new name for a VA.

The insurance industry has a history of renaming products after they develop a bad reputation.
by David Jay
Mon Feb 19, 2018 7:27 pm
Forum: Investing - Theory, News & General
Topic: How do you go from midcap to large?
Replies: 1
Views: 227

Re: How do you go from midcap to large?

Let's base this discussion on this theory. Tomorrow's large cap stocks are today's mid and small cap stocks. The vast majority of today’s SC and MC stocks will never be large cap stocks. How does one know, in advance, which ones will become large cap stocks? Total Stock takes care of that - own the...
by David Jay
Mon Feb 19, 2018 6:49 pm
Forum: Personal Consumer Issues
Topic: $12,000 Refrigerator? [Looking in $7k price range]
Replies: 44
Views: 4502

Re: $12,000 Refrigerator?

I've learned to look at the bright side of things. OP can afford an expensive (a very expensive) item; good for him. He's helping drive the economy; thank you, OP. It provides a nice commission for the salesperson, and he's doing well for the month, and doesn't have to worry about his budget or hea...
by David Jay
Mon Feb 19, 2018 2:20 pm
Forum: Personal Finance (Not Investing)
Topic: Employee, independent contractor or what?
Replies: 4
Views: 262

Re: Employee, independent contractor or what?

I was kind of operating in the same vein as "Silk", a good-faith effort to operate in the best interest of Megacorp is all they can expect. Otherwise they need to give you specific "this is what we expect of contract workers" instructions.
by David Jay
Mon Feb 19, 2018 1:09 pm
Forum: Personal Finance (Not Investing)
Topic: Employee, independent contractor or what?
Replies: 4
Views: 262

Re: Employee, independent contractor or what?

You are not an employee. Megacorp may wish for you at operate to the same behavioral standards as an employee, but that does not make you an employee.

If they don't send you a W2, you are not an employee.
by David Jay
Mon Feb 19, 2018 1:05 pm
Forum: Investing - Help with Personal Investments
Topic: What do Bogleheads think of Passive income through Dividend Stocks
Replies: 26
Views: 2159

Re: What do Bogleheads think of Passive income through Dividend Stocks

Derivative wrote:
Mon Feb 19, 2018 12:53 pm
I have looked at some YouTube videos on people investing in dividend stocks...
Perhaps this is not the optimal source of investment information.
by David Jay
Mon Feb 19, 2018 10:19 am
Forum: Investing - Help with Personal Investments
Topic: 401K options, I think I can choose better funds
Replies: 16
Views: 569

Re: 401K options, Ii think I can have choose better funds

BTW - your new 2018 federal marginal rate would be 22%, but you might be at 12% between the new standard deduction and those 401K contributions.
by David Jay
Mon Feb 19, 2018 10:18 am
Forum: Investing - Help with Personal Investments
Topic: 401K options, I think I can choose better funds
Replies: 16
Views: 569

Re: 401K options, Ii think I can have choose better funds

onourway wrote:
Mon Feb 19, 2018 10:12 am
Personally I would choose FUSVX FID 500 INDEX and FSIVX FID INTL INDEX at your chosen split and contribute as much as possible while then proceeding to forget about it for a couple of decades. :D
+1

Maybe 75% FUSVX and 25% FSIVX
by David Jay
Mon Feb 19, 2018 9:41 am
Forum: Investing - Theory, News & General
Topic: How many of you use the "4% rule" during retirement?
Replies: 56
Views: 6665

Re: How many of you use the "4% rule" during retirement?

I'm with David Jay. I'm not sure what that means, I don't think I wrote of my preference in this thread. I prefer a fixed percentage (5%?) of remaining portfolio (from Merriman's research). Easy. No inflation calculations (CPI-U? CPI-W?). If there is cognitive decline I can ask my daughter to multi...
by David Jay
Sun Feb 18, 2018 8:42 am
Forum: Investing - Help with Personal Investments
Topic: Over 55 does contributing to a Roth 401K make sense based on new Tax Brackets
Replies: 25
Views: 1792

Re: Over 55 does contributing to a Roth 401K make sense based on new Tax Brackets

At your age (just a few years behind me), I would begin to look at RMDs and the pressure they will put on your future plans. The RMD withdrawal percentage increases every year, so by your 80s your RMD is pushing you into higher brackets. Many here at BH are balancing their traditional and Roth contr...
by David Jay
Sat Feb 17, 2018 11:07 am
Forum: Personal Consumer Issues
Topic: $12,000 Refrigerator? [Looking in $7k price range]
Replies: 44
Views: 4502

Re: $12,000 Refrigerator?

I am look at ~ $7k approx for DW, Fridge, Micro, Stove. $7000??? For kitchen appliances??? OK, it keeps the food cold, washes dishes, and cooks (at least 3 different ways)....what is this poor Boglehead missing? [/sarc] (Edit) it is all perspective. You can’t imagine spending $12,000 on a fridge. 9...
by David Jay
Sat Feb 17, 2018 10:16 am
Forum: Investing - Theory, News & General
Topic: ETFs a cause of market turbulence?
Replies: 13
Views: 933

Re: Index funds a cause of market turbulence?

It is all that rebalancing BHs are doing when the market changes. Look how many threads there were about rebalancing during the market drop these last weeks. It exacerbates the downside. I don’t think so. Rebalancing is a counter-action to a market move. Let’s say I am trying to hold at 60/40 and t...
by David Jay
Sat Feb 17, 2018 9:59 am
Forum: Personal Finance (Not Investing)
Topic: Can I convert whole life back to term?
Replies: 16
Views: 882

Re: Can I convert whole life back to term?

I do not know if this is the ONLY way, but why would you choose to use the agent who put you in this unacceptable situation? Get some term quotes before you decide. I expect that you will find other companies will have better term rates (nothing against your current insurer, but a company that push...
by David Jay
Sat Feb 17, 2018 9:56 am
Forum: Investing - Help with Personal Investments
Topic: When do IRA's stop making sense?
Replies: 37
Views: 2624

Re: When do IRA's stop making sense?

Given the tax implications/limitations, does it make sense to contribute to that IRA (and/or open up a spousal IRA) or am I better served in other savings vehicles? Is there an opportunity for a backdoor Roth given that I can't roll over my existing traditional IRA? Your income qualifies your wife ...
by David Jay
Sat Feb 17, 2018 9:45 am
Forum: Personal Finance (Not Investing)
Topic: Can I convert whole life back to term?
Replies: 16
Views: 882

Re: Can I convert whole life back to term?

1) Getting a term policy somewhere else. 2) Cancelling and cashing out my policy and reducing but keeping some of my wife's b/c she can't get insurance any other way? I do not know if this is the ONLY way, but why would you choose to use the agent who put you in this unacceptable situation? Get som...
by David Jay
Fri Feb 16, 2018 6:18 pm
Forum: Investing - Help with Personal Investments
Topic: Moving from Speculation to Investment
Replies: 2
Views: 247

Re: Moving from Speculation to Investment

As the first reply suggested, we need to know how much of the individual stock holdings are to tax-advantaged accounts.
by David Jay
Fri Feb 16, 2018 5:45 pm
Forum: Investing - Theory, News & General
Topic: What is the evidence against slice and dice?
Replies: 59
Views: 4415

Re: What is the evidence against slice and dice?

Will you be able to stick with a strategy, whether it be TSM or tilting, that underperforms the market for a decade or more? These are difficult questions to answer, and I believe that they can only be answered by us as individual investors. Yup. As I have often written to those who think they want...
by David Jay
Fri Feb 16, 2018 2:09 pm
Forum: Investing - Theory, News & General
Topic: Increasing SS PIA by working again
Replies: 27
Views: 1503

Re: Increasing SS PIA by working again

edit #2: I can't even find in the current law describing the calculation ( https://www.law.cornell.edu/uscode/text/42/415 ) where the highest 35 years comes into play. Search for 35 (as number or text) and it's nowhere to be found. Here is a description of the calculation on the Social Security web...
by David Jay
Fri Feb 16, 2018 1:08 pm
Forum: Investing - Help with Personal Investments
Topic: Mutual Fund selling price
Replies: 9
Views: 501

Re: Mutual Fund selling price

If you feel that limit orders are essential to your investing style, many Vanguard mutual funds are also available as ETFs. ETFs are bought and sold on exchanges during market hours. Look up the fund you are interested in on the Vanguard website. A banner at the top will tell you the alternate share...
by David Jay
Fri Feb 16, 2018 12:46 pm
Forum: Investing - Help with Personal Investments
Topic: Stock vs Bond
Replies: 2
Views: 353

Re: Stock vs Bond

Bogleheads recommends that you have a combination of both stocks and bonds in a ratio to meet your personal need, ability and willingness to accept risk. This is called "asset allocation".

Wiki here: https://www.bogleheads.org/wiki/Asset_allocation
by David Jay
Thu Feb 15, 2018 8:31 pm
Forum: Investing - Help with Personal Investments
Topic: Roth IRA - Trading
Replies: 9
Views: 753

Re: Roth IRA - Trading

1. There is no tax consequence for any trading within a Roth. The closest thing to a tax consequence is that wash sale regulations apply in any non-Roth accounts that you also hold so you need to be aware that Roth activities can affect other accounts. 2. I am concerned when I hear language like you...
by David Jay
Thu Feb 15, 2018 4:45 pm
Forum: Investing - Help with Personal Investments
Topic: Why are TLT and AGG declining so much?
Replies: 10
Views: 1285

Re: Why are TLT and AGG declining so much?

What is your time horizon? For your retirement portfolio, most would recommend an intermediate term fund, not a short term fund.

For intermediate: BND is the classic, VCIT is the corporate investment grade that is the Intermediate equivalent to VCSH.
by David Jay
Thu Feb 15, 2018 3:58 pm
Forum: Investing - Theory, News & General
Topic: How many of you use the "4% rule" during retirement?
Replies: 56
Views: 6665

Re: How many of you use the "4% rule" during retirement?

iceport wrote:
Thu Feb 15, 2018 1:04 pm
At the risk of outing myself as unworthy of your respect ( :shock: )...
it's OK as long as you're not advocating "slavishly".

"Slavishly" is verboten.
by David Jay
Thu Feb 15, 2018 3:41 pm
Forum: Investing - Help with Personal Investments
Topic: Newbie: retirement vs. college savings vs. life insurance
Replies: 33
Views: 1236

Re: Newbie: retirement vs. college savings vs. life insurance

I haven't posted this screed for a couple of years, but I guess it's about time: 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 family responsibilities and needs protection, it is difficult to affo...
by David Jay
Thu Feb 15, 2018 12:05 pm
Forum: Investing - Help with Personal Investments
Topic: Newbie: retirement vs. college savings vs. life insurance
Replies: 33
Views: 1236

Re: Newbie: retirement vs. college savings vs. life insurance

I haven't posted this screed for a couple of years, but I guess it's about time: 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 family responsibilities and needs protection, it is difficult to affor...
by David Jay
Thu Feb 15, 2018 11:49 am
Forum: Investing - Help with Personal Investments
Topic: Why are TLT and AGG declining so much?
Replies: 10
Views: 1285

Re: Why are TLT and AGG declining so much?

Yeah, it was my bad looking at past returns, and not looking at the ETF itself... Yup, long term bond fund returns looked good because they had a lot of high-interest funds bought back 10-15 years ago so payout was good. Going forward, they are replacing those bonds (as they expire) with low intere...
by David Jay
Thu Feb 15, 2018 11:06 am
Forum: Investing - Help with Personal Investments
Topic: Convert to ETF (not at Vanguard)
Replies: 19
Views: 1378

Re: Convert to ETF (not at Vanguard)

Has anybody ever converted Vanguard mutual fund shares to ETF, but done so at another broker (Schwab, Fidelity, Merrill etc.)? Vanguard's website says this is possible --I figured if anybody had ever actually done that it would have been amongst this group. :happy Only for funds held in Vanguard ac...
by David Jay
Thu Feb 15, 2018 11:02 am
Forum: Investing - Theory, News & General
Topic: Increasing SS PIA by working again
Replies: 27
Views: 1503

Re: Increasing SS PIA by working again

If you take a pay cut near the end of your career or go to part-time work could it negatively affect your benefits? I am not sure exactly which question you are asking: 1. Will benefits be higher if you work longer? Typically Yes, especially if you currently have fewer than 35 years of earnings. 2....
by David Jay
Wed Feb 14, 2018 11:11 pm
Forum: Investing - Theory, News & General
Topic: How many of you use the "4% rule" during retirement?
Replies: 56
Views: 6665

Re: How many of you use the "4% rule" during retirement?

As I have read the various threads on the 4% rule, it is not typically used as a withdrawal strategy, it is more typically used as FI indicator. Not sure about this - my understanding is that it is a withdrawal strategy. I retired at 65 (two years in Sept. 2018), and am planning to use it for 65-69...
by David Jay
Wed Feb 14, 2018 10:54 pm
Forum: Investing - Theory, News & General
Topic: Can someone help me explain to my wife...?
Replies: 76
Views: 7993

Re: Can someone help me explain to my wife...?

The worlds worst market timer is a great starting point. Give her this story: viewtopic.php?t=166730
by David Jay
Wed Feb 14, 2018 10:40 pm
Forum: Investing - Theory, News & General
Topic: Increasing SS PIA by working again
Replies: 27
Views: 1503

Re: Increasing SS PIA by working again

It seems that your PIA is calculated based upon your earnings up to the SS max in the highest-earning 35 years of work. This is then run through a formula which indexes the earnings during those 35 highest earning years up to current pay levels... This sequence is backwards. Each past year of earni...
by David Jay
Wed Feb 14, 2018 8:47 pm
Forum: Investing - Theory, News & General
Topic: How many of you use the "4% rule" during retirement?
Replies: 56
Views: 6665

Re: How many of you use the "4% rule" during retirement?

As I have read the various threads on the 4% rule, it is not typically used as a withdrawal strategy, it is more typically used as FI indicator.
by David Jay
Wed Feb 14, 2018 8:38 pm
Forum: Investing - Help with Personal Investments
Topic: Why are TLT and AGG declining so much?
Replies: 10
Views: 1285

Re: Why are TLT and AGG declining so much?

Few around here would recommend a Long Term Bond Fund in general, and certainly not in a rising rate environment. It may take 15 or 20 years for a “20+” bond fund like TLT to be a good financial investment.

How did you come to select TLT? Did you perhaps look at past returns?
by David Jay
Wed Feb 14, 2018 4:20 pm
Forum: Investing - Theory, News & General
Topic: philosophicaleconomics predicts 4% real equity returns
Replies: 124
Views: 6612

Re: philosophicaleconomics predicts 4% real equity returns

whodidntante wrote:
Wed Feb 14, 2018 1:45 pm
Then a violently raging bull as I approach retirement.
Worked for me. I was 80/20 at the start of 2016 and I was 50/50 at the end of 2017, preparing for a 2019 retirement.
by David Jay
Wed Feb 14, 2018 4:00 pm
Forum: Investing - Help with Personal Investments
Topic: contributing to roth IRA before making 5500
Replies: 2
Views: 263

Re: contributing to roth IRA before making 5500

As long as for tax year 2018 you have more income than Roth contribution, the IRS does not evaluate when you in the year you made the contribution.

If at the end of the year you have contributed more than income earned, you must back out ("re-characterize") some of those funds.
by David Jay
Tue Feb 13, 2018 6:31 pm
Forum: Investing - Help with Personal Investments
Topic: Am I Wasting My Tax Deferred Space
Replies: 8
Views: 1314

Re: Am I Wasting My Tax Deferred Space

In your tax bracket, you should absolutely utilize all available tax-advantaged space before investing in taxable.
by David Jay
Tue Feb 13, 2018 4:58 pm
Forum: Investing - Theory, News & General
Topic: Day trading for a living/career?
Replies: 95
Views: 6591

Re: Day trading for a living/career?

jibantik wrote:
Mon Feb 12, 2018 10:55 pm
You'd have to be Jim Cramer levels of genius :wink:
I see what you did there...
by David Jay
Tue Feb 13, 2018 4:18 pm
Forum: Investing - Theory, News & General
Topic: What if you only live off dividends?
Replies: 69
Views: 5612

Re: What if you only live off dividends?

Here's a lot simpler method: 5% of portfolio balance. By definition, it never fails (you never empty the portfolio). It is variable each year, depending on the end-of-the-year account balance. But so are dividends and interest. Dividend yield goes up and down. Interest rates go up and down. I don't...
by David Jay
Tue Feb 13, 2018 1:37 pm
Forum: Investing - Help with Personal Investments
Topic: Spousal IRA contribution
Replies: 3
Views: 321

Re: Spousal IRA contribution

I don't know if you are allowed to contribute to an inherited IRA, but I absolutely would not. Too many possibilities for confusion. Keep inherited separate from personal.

Spousal income qualifies, so "his" income covers "her" contribution or vice-versa.
by David Jay
Tue Feb 13, 2018 1:04 pm
Forum: Investing - Help with Personal Investments
Topic: Are these fees for real?
Replies: 25
Views: 2210

Re: Are these fees for real?

The back end load starts at 5% the first year and drops by 1% each year until is disappears after 5 years. This "advisor" could not pick a better fund for him nor a worse one for your wife. After 5 years he can move the money to a new fund and start the clock again. After all, who would consider a ...
by David Jay
Tue Feb 13, 2018 12:54 pm
Forum: Investing - Help with Personal Investments
Topic: Tax treatment of Roth IRA withdrawals with ROTH 401k rollover
Replies: 10
Views: 542

Re: Tax treatment of Roth IRA withdrawals with ROTH 401k rollover

Using your assumption that the destination Roth IRA has been open for more than 5 years (it does matter, if you had no Roth IRA and you opened your first one to receive the rollover, the 5 year clock starts over from zero): 1. All contributions from the rollover may be taken out tax free (note: Rot...
by David Jay
Tue Feb 13, 2018 11:19 am
Forum: Investing - Theory, News & General
Topic: What if you only live off dividends?
Replies: 69
Views: 5612

Re: What if you only live off dividends?

Here's a lot simpler method:

5% of portfolio balance. By definition, it never fails (you never empty the portfolio).

It is variable each year, depending on the end-of-the-year account balance. But so are dividends and interest. Dividend yield goes up and down. Interest rates go up and down.
by David Jay
Mon Feb 12, 2018 9:46 pm
Forum: Investing - Help with Personal Investments
Topic: Extreme newbie - what to do with inheritance
Replies: 10
Views: 1092

Re: Extreme newbie - what to do with inheritance

Do nothing quickly. Read, learn and move slowly.

Read the Wiki about managing a windfall here: https://www.bogleheads.org/wiki/Managing_a_windfall
by David Jay
Mon Feb 12, 2018 7:34 pm
Forum: Personal Finance (Not Investing)
Topic: Number at which to stop worrying
Replies: 170
Views: 16592

Re: Number at which to stop worrying

OP, 50 times your current annual expense. At 72K per year, it is 3.6 million. KlangFool I prefer a two-stage accounting method: 1. Dollars to SS claiming, I show this amount in actual dollars - I don’t plan for any growth. For the OP, $72K x 22years = ~1.6M. This number drops every year. 2. Expense...
by David Jay
Mon Feb 12, 2018 6:40 pm
Forum: Investing - Help with Personal Investments
Topic: Fixed Index Annuities
Replies: 22
Views: 1390

Re: Fixed Index Annuities

We’ve probably hijacked this thread too much already, but the problem was your original statement, which could be very confusing to someone looking for answers, as follows: ...since high 6 digits portfolios have usually meaningful failure rates at retirement. There is no useful concept for the OP in...
by David Jay
Mon Feb 12, 2018 4:44 pm
Forum: Investing - Help with Personal Investments
Topic: Tax treatment of Roth IRA withdrawals with ROTH 401k rollover
Replies: 10
Views: 542

Re: Tax treatment of Roth IRA withdrawals with ROTH 401k rollover

Using your assumption that the destination Roth IRA has been open for more than 5 years (it does matter, if you had no Roth IRA and you opened your first one to receive the rollover, the 5 year clock starts over from zero): 1. All contributions from the rollover may be taken out tax free (note: Roth...