Search found 6486 matches

by David Jay
Thu Jun 13, 2019 9:15 pm
Forum: Personal Finance (Not Investing)
Topic: Cost of LifeStrategy Mod Grwth in Taxable VS Three Fund Portfolio plus VPAS
Replies: 25
Views: 1557

Re: Cost of LifeStrategy Mod Grwth in Taxable VS Three Fund Portfolio plus VPAS

OP:

This is very close to my plan. My “Dear (spouse)” letter tells my wife to put everything in LS Moderate (virtually all assets are in tax-advantaged accounts).
by David Jay
Wed Jun 12, 2019 9:46 pm
Forum: Personal Investments
Topic: Roth IRA or no?
Replies: 18
Views: 1476

Re: Roth IRA or no?

Chrono Triggered wrote:
Wed Jun 12, 2019 7:11 pm
Depending on how much your incomes will increase ( especially regarding tax brackets) then a case for pounding Roth as hard as you can until that happens is a strong consideration.
You can open (2) Roth accounts, one for each of you and put 12,000 (6000 each) every year until you exceed the limit.
by David Jay
Wed Jun 12, 2019 6:45 pm
Forum: Personal Investments
Topic: Roth IRA or no?
Replies: 18
Views: 1476

Re: Roth IRA or no?

What happens if I open a roth IRA now, contribute for a few years, then we do happen to go over max allowable married filed jointly income mandated by the government? Would I then have to transfer the roth into a traditional IRA? No, you can keep the Roth and everything in it. You would simply be u...
by David Jay
Mon Jun 10, 2019 10:06 pm
Forum: Personal Investments
Topic: Your Current Holdings & Asset Allocation
Replies: 3
Views: 759

Re: Your Current Holdings & Asset Allocation

Here is an old poll (Polls are no longer supported on this site) that gives Asset Allocation - phrased as “age in bonds”: viewtopic.php?f=10&t=101010&p=1462408
by David Jay
Sun Jun 09, 2019 8:28 pm
Forum: Personal Investments
Topic: Pacific Life Index Universal Life Insurance
Replies: 16
Views: 1526

Re: Pacific Life Index Universal Life Insurance

Pink: Welcome to the forum. IUL policies are high cost, you can get much better performance from owning the same underlying index without the Life Insurance wrapper. An IUL can occasionally make sense for individuals in very high tax brackets, the link above to White Coat Investor (he is a physician...
by David Jay
Sun Jun 09, 2019 5:20 pm
Forum: Personal Investments
Topic: Deep out of Money Puts and LEAP Puts- What am I overlooking?
Replies: 29
Views: 2366

Re: Deep out of Money Puts and LEAP Puts- What am I overlooking?

At a basic level if you're putting in 1-5% every year, you are losing 1-5% every year off of your portfolio return, which greatly diminishes your returns, unless of course the market tanks then your losses will be less. Thanks. I appreciate framing it this way. Makes me want to lean more towards th...
by David Jay
Sun Jun 09, 2019 5:08 pm
Forum: Personal Investments
Topic: 1.5 millon in cash to invest
Replies: 22
Views: 2415

Re: 1.5 millon in cash to invest

I use this funds because I am going to start using money from the target data retirement in 2030 and 2050 respectively. You have given this answer twice, so I think you need a little bit more information on “Target Date” funds. A Target Date fund is intended as “all-in-one” fund, designed to fit a ...
by David Jay
Sun Jun 09, 2019 9:02 am
Forum: Personal Finance (Not Investing)
Topic: Paying for rent is throwing away money...myth?
Replies: 302
Views: 18547

Re: Paying for rent is throwing away money...myth?

As others have said, you have to look at the entire picture. A home in my neighborhood (a favored school district) rents for more than my total cost of ownership (mortgage, taxes and upkeep budget). I can’t afford to rent :(
by David Jay
Sat Jun 08, 2019 7:55 pm
Forum: Personal Investments
Topic: Suitability of multifactor in taxable
Replies: 12
Views: 678

Re: Suitability of multifactor in taxable

A core holding? A fund that is less than 18 months old and for the last year is underperforming it’s benchmark by 1200 basis points?

If it meets its objectives for 5 years it might be worth a fresh evaluation, but in my opinion it is way to new.
by David Jay
Sat Jun 08, 2019 4:39 pm
Forum: Personal Investments
Topic: Moving from Rat Race to FIRE, Near All-Time Highs (Best Way to Invest Account Sitting in 100% Cash)
Replies: 35
Views: 5962

Re: Moving from Rat Race to FIRE, Near All-Time Highs (Best Way to Invest Account Sitting in 100% Cash)

you DON'T LOSE A DOLLAR IN A DOWNTURN UNLESS YOU SELL. Who would say that a 10 year old beater car hasn't lost value just because it hasn't been sold yet? While I don’t necessarily agree with Russ, you analogy is unworkable. The stock market has real earnings and real growth. Your used car has neit...
by David Jay
Sat Jun 08, 2019 3:11 pm
Forum: Investing - Theory, News & General
Topic: Investing Techniques For People Approaching Retirement In This Aging Bull Market
Replies: 35
Views: 5224

Re: Investing Techniques For People Approaching Retirement In This Aging Bull Market

SGM wrote:
Sat Jun 08, 2019 2:51 pm
In 40+ years of investing I have never written a stop loss order
Explorer: I would do some searches here on the site for “stop loss orders”, they can be very dangerous in a “flash crash” scenario.
by David Jay
Sat Jun 08, 2019 3:08 pm
Forum: Investing - Theory, News & General
Topic: Investing Techniques For People Approaching Retirement In This Aging Bull Market
Replies: 35
Views: 5224

Re: Investing Techniques For People Approaching Retirement In This Aging Bull Market

I retired 5 months ago, but in the 5 years leading up to retirement I did the following: 1. Moved from 100% stocks to about 50/50 over that period. I was somewhat opportunistic, converting small amounts after major market gains. 2. I began with Total Bond, but later (with about a year to go) moved 2...
by David Jay
Sat Jun 08, 2019 9:19 am
Forum: Personal Investments
Topic: Trading menu options...
Replies: 10
Views: 652

Re: Trading menu options...

Wanting to be in the market sooner rather than later, it seems I would choose "on the open". I would NOT use “at open” (which implies that you placed the order overnight), even with a widely traded ETF the market can open with wild swings. If one has the schedule freedom to trade during the time wh...
by David Jay
Sat Jun 08, 2019 12:05 am
Forum: Personal Investments
Topic: Trading menu options...
Replies: 10
Views: 652

Re: Trading menu options...

People could give better advice if we knew what you were trading and your goals for your trading activity. But I will give it a shot: 1. If you are purchasing any widely traded asset (say, an SP500 stock or a major index ETF like SPY or VTI), the only real key issue is: when are you trading? A. If y...
by David Jay
Fri Jun 07, 2019 11:06 pm
Forum: Personal Investments
Topic: Any other notable firms besides the Big 3?
Replies: 8
Views: 1413

Re: Any other notable firms besides the Big 3?

Some regular contributors here (one in particular) like Merrill Edge. Merrill does not have a family of low cost index funds (Classic MF or ETF) but they offer low cost trading of third-party ETFs. The “Big 3” as you have called them each has a full line of “in-house” products from which to select. ...
by David Jay
Fri Jun 07, 2019 11:48 am
Forum: Personal Investments
Topic: REITs Kimco (KIM) vs VRTPX ?
Replies: 2
Views: 199

Re: REITs Kimco (KIM) vs VRTPX ?

It is much less risky to hold a mutual fund or ETF (which in turn holds perhaps dozens of REITs) than to hold a single REIT.
by David Jay
Fri Jun 07, 2019 10:46 am
Forum: Investing - Theory, News & General
Topic: Economics Question
Replies: 8
Views: 650

Re: Economics Question

Economics is not a precise science (like, say, chemistry or mathematics). For the same inputs, you get a variety of outputs. Do you remember when Alan Greenspan decried the “irrational exhuberance” of the markets. That was 1996, the markets continued to go up for another 4 years after the “indicator...
by David Jay
Thu Jun 06, 2019 9:37 am
Forum: Personal Investments
Topic: How to invest $250K ESOP Payout?
Replies: 7
Views: 611

Re: How to invest $250K ESOP Payout?

What this means is that my tax bracket for 2019 would be super low. Can I take advantage of this low tax bracket now and take the $250K cash payout? Obviously, I pay 10% penalty and also 20% federal income tax witheld during distribution. My point is there is a high probability that my tax bracket ...
by David Jay
Thu Jun 06, 2019 9:15 am
Forum: Personal Consumer Issues
Topic: What flagship (even used) item is better than a budget new item?
Replies: 131
Views: 7694

Re: What flagship (even used) item is better than a budget new item?

Here’s my ditty on the subject:

The last time you regret buying quality is at the cash register.
The last time you are glad you bought junk is at the cash register.
by David Jay
Wed Jun 05, 2019 10:52 pm
Forum: Investing - Theory, News & General
Topic: Adding risk to portfolio: stocks vs. interest-rate vs. credit vs. etc
Replies: 22
Views: 953

Re: Adding risk to portfolio: stocks vs. interest-rate vs. credit vs. etc

Welcome to the forum! At BH we teach that the stock-bond allocation is the primary control knob for Reward versus Risk. By and large we would recommend increasing stock percentage - a common statement make around here: “take your risk on the equity side” We strongly recommend against long term bond...
by David Jay
Wed Jun 05, 2019 7:16 pm
Forum: Investing - Theory, News & General
Topic: Adding risk to portfolio: stocks vs. interest-rate vs. credit vs. etc
Replies: 22
Views: 953

Re: Adding risk to portfolio: stocks vs. interest-rate vs. credit vs. etc

However, if I decide I believe in EHM, I must also think that if long-term bonds were indeed so undesirable, investors wouldn't want them, and this would make them cheap again. You are thinking too small (i.e. you limited the pool of your thought-experiment above to individual investors). Long term...
by David Jay
Wed Jun 05, 2019 6:09 pm
Forum: Investing - Theory, News & General
Topic: "Stay course" conflicts: Help me understand.
Replies: 10
Views: 1241

Re: "Stay course" conflicts: Help me understand.

get_g0ing wrote:
Wed Jun 05, 2019 11:24 am
I would tweak the strategy every year to adjust or adapt based on the returns of the strategy.
No. An investment strategy that has any equity (stock) position can’t possibly be judged by a one-year evaluation.

As bryanm might put it, one year in the equity markets is pure noise.
by David Jay
Wed Jun 05, 2019 5:56 pm
Forum: Personal Investments
Topic: Merriman Aggressive Glide Path
Replies: 21
Views: 1459

Re: Merriman Aggressive Glide Path

You will get more responses if you give the full names for those ETFs - don’t make people look them up before commenting.

I know VTI and VSS off the top of my head but not the others...
by David Jay
Wed Jun 05, 2019 5:53 pm
Forum: Personal Investments
Topic: How aggressive is your AA? Can you help me with mine?
Replies: 19
Views: 2240

Re: How aggressive is your AA? Can you help me with mine?

At age 47, an 80/20 portfolio is aggressive but not “wrong”. Your pension helps buffer the more aggressive AA. AA is extremely personal, it needs to reflect your personal response to market fluctuations. How will you respond to another 2008-2009 when the stock market drops 60%? I am essentially immu...
by David Jay
Wed Jun 05, 2019 5:43 pm
Forum: Investing - Theory, News & General
Topic: Adding risk to portfolio: stocks vs. interest-rate vs. credit vs. etc
Replies: 22
Views: 953

Re: Adding risk to portfolio: stocks vs. interest-rate vs. credit vs. etc

Welcome to the forum! At BH we teach that the stock-bond allocation is the primary control knob for Reward versus Risk. By and large we would recommend increasing stock percentage - a common statement make around here: “take your risk on the equity side” We strongly recommend against long term bonds...
by David Jay
Wed Jun 05, 2019 5:30 pm
Forum: Personal Investments
Topic: How to invest $250K ESOP Payout?
Replies: 7
Views: 611

Re: How to invest $250K ESOP Payout?

Welcome to the forum! I spent the last 31 years working for an ESOP company, so I understand the issues. I hate #1 and #2 because I can't touch money until retirement which is 30 years away easily. This is simply not correct. You can withdraw from a traditional IRA, although there is a 10% penalty. ...
by David Jay
Wed Jun 05, 2019 10:46 am
Forum: Personal Consumer Issues
Topic: Company requiring salaried employees to clock in?
Replies: 92
Views: 4764

Re: Company requiring salaried employees to clock in?

For safety it is not uncommon for employees to check in and check out. In an emergency the company can verify that everyone is safely out of the building.

It is poor HR management not explain the reasons for the new policy, but I found that happened often with my (small) employer.
by David Jay
Wed Jun 05, 2019 10:39 am
Forum: Personal Investments
Topic: How am I doing? (26yo)
Replies: 19
Views: 1810

Re: How am I doing? (26yo)

You are about 10 years ahead of where I was mentally - I didn’t get serious about contributing to retirement accounts until my mid-30s.

Great start!
by David Jay
Tue Jun 04, 2019 11:12 pm
Forum: Personal Consumer Issues
Topic: Recommendations for 2 way radio.
Replies: 10
Views: 982

Re: Recommendations for 2 way radio.

Any “FRS” (Family Radio Service - requires no license) radios will give you a mile or two of range.

For example, I see a “Cobra” branded set, 22 channels, with weather radio and rechargeable batteries for under $30 a pair (Amazon: “Cobra CX-112”).
by David Jay
Tue Jun 04, 2019 9:46 am
Forum: Personal Consumer Issues
Topic: Moderately Priced Hotel by Great Lakes within 3 Hours Drive of Detroit?
Replies: 18
Views: 957

Re: Moderately Priced Hotel by Great Lakes within 3 Hours Drive of Detroit?

Valuethinker wrote:
Tue Jun 04, 2019 7:07 am
However the advice to go upstate in MI Is good, subject to accommodation. There may be Air BnB type options, or renting a cottage for a week? These could prove to be significantly cheaper, and better accommodation, than a lower priced hotel in peak season.

Upstate MI is lovely.
+1
by David Jay
Tue Jun 04, 2019 9:16 am
Forum: Personal Investments
Topic: Is a two fund portfolio best for me?
Replies: 9
Views: 607

Re: Is a two fund portfolio best for me?

“Best” can only be determined in hindsight. What one needs to do is pick something reasonable and stick with it . It is the fiddling with your accounts that is the problem, not whether you do/don’t hold international or if you are 100/0 or 80/20. This is where an IPS is so useful, write it down and ...
by David Jay
Mon Jun 03, 2019 11:15 pm
Forum: Personal Consumer Issues
Topic: Road Trip: After the West Coast
Replies: 8
Views: 687

Re: Road Trip: After the West Coast

Theodore Roosevelt National Park is just off I-94 in western North Dakota

We are headed there next week.
by David Jay
Mon Jun 03, 2019 11:17 am
Forum: Investing - Theory, News & General
Topic: Do Buy & Hold Index Investors "need" people to actively invest?
Replies: 26
Views: 2188

Re: Do Buy & Hold Index Investors "need" people to actively invest?

adamthesmythe wrote:
Mon Jun 03, 2019 11:11 am
Personally I have a strong belief that there is an infinite reservoir of people who will believe they are smarter than the market.
Hey, I used to be one of those :oops:
by David Jay
Mon Jun 03, 2019 11:08 am
Forum: Investing - Theory, News & General
Topic: Do Buy & Hold Index Investors "need" people to actively invest?
Replies: 26
Views: 2188

Re: Do Buy & Hold Index Investors "need" people to actively invest?

Theoretical question: Do buy and hold index investors need other investors to... invest in actively managed funds in order to get returns? In a pedantic answer to actively managed mutual funds: NO. There is absolutely no “need” for actively managed mutual funds to exist (and at one point in history...
by David Jay
Mon Jun 03, 2019 10:07 am
Forum: Investing - Theory, News & General
Topic: Do Buy & Hold Index Investors "need" people to actively invest?
Replies: 26
Views: 2188

Re: Do Buy & Hold Index Investors "need" people to actively invest?

Theoretical question: Do buy and hold index investors need other investors to...[edited] invest in actively managed funds in order to get returns? In a pedantic answer limited just to actively managed mutual funds: NO. There is absolutely no “need” for actively managed mutual funds to exist (and at...
by David Jay
Mon Jun 03, 2019 10:01 am
Forum: Investing - Theory, News & General
Topic: Do Buy & Hold Index Investors "need" people to actively invest?
Replies: 26
Views: 2188

Re: Do Buy & Hold Index Investors "need" people to actively invest?

To add some nuance to what Tamalak said, it is trading that sets prices, not ownership. There are billions of dollars of trades every market day. If these trades stopped, there would be no “price” for a given stock (and thus for all stocks). My position is, that if things actually went so far toward...
by David Jay
Fri May 31, 2019 9:45 pm
Forum: Investing - Theory, News & General
Topic: How did you all do in the month of May, 2019
Replies: 125
Views: 9774

Re: How did you all do in the month of May, 2019

How did my retirement portfolio perform for one month?
Really?
by David Jay
Sun May 26, 2019 7:46 pm
Forum: Personal Investments
Topic: Overlapping Funds? Figuring Out Asset Allocation
Replies: 12
Views: 823

Re: Overlapping Funds? Figuring Out Asset Allocation

1. Personally, I would not hold any emerging markets fund based on personal experience. You may receive other advice but I would recommend a developed market fund or a total international fund. 2. Total Stock (VTSAX) is a great fund for taxable. Most (in many years: “all”) dividends are qualified. 3...
by David Jay
Sun May 26, 2019 7:18 pm
Forum: US Chapters
Topic: Retiredjg at 36,000 posts!
Replies: 34
Views: 2353

Re: Retiredjg at 36,000 posts!

Thanks retiredjg, I learned from you how to welcome newcomers to the forum.
by David Jay
Sat May 25, 2019 8:25 pm
Forum: Personal Investments
Topic: New investor at age 50yr requesting fund selection help
Replies: 11
Views: 1424

Re: New investor at age 50yr requesting fund selection help

Welcome to the forum!

There is a Wiki for that, link here: https://www.bogleheads.org/wiki/Approxi ... ock_market

It says 81/4/15. which suggests 24/1/5, but I am not sure I would mess with mid-cap, I think I would use your numbers (above) of 24/0/6
by David Jay
Fri May 24, 2019 8:19 pm
Forum: Personal Investments
Topic: ESOP Diversify/Roth IRA
Replies: 3
Views: 243

Re: ESOP Diversify/Roth IRA

Iridium is right - you are “allowed” to roll it over into a Roth, but it would be a terrible choice. You would have to pay taxes on the money as if it was ordinary income on top of what you are already earning, likely pushing you up a bracket (or two..) You are right to diversify. I worked for an ES...
by David Jay
Fri May 24, 2019 8:13 pm
Forum: Personal Finance (Not Investing)
Topic: Understanding the Wiki - Traditional versus Roth
Replies: 10
Views: 777

Re: Understanding the Wiki - Traditional versus Roth

It works in your date-constrained example for 55-67, but it won’t work after start of SS and more so as the RMD percentages grow through 5%..6%..7%..8%..

The Wiki makes a general point, it is almost always possible to find specific instances where the general rule doesn’t apply.
by David Jay
Fri May 24, 2019 8:05 pm
Forum: Personal Finance (Not Investing)
Topic: 4M 70K expenses would you stop?
Replies: 105
Views: 10753

Re: 4M 70K expenses would you stop?

That is more than 50x expenses. It would be hard for me to justify giving an employer 40-50-60 hours a week of my life, it would require that my work be an avocation. And even there, I would find a way to work less than full time.
by David Jay
Wed May 22, 2019 6:44 pm
Forum: Personal Finance (Not Investing)
Topic: I evaluated taking SS at age 62 versus age 70
Replies: 67
Views: 4998

Re: I evaluated taking SS at age 62 versus age 70

Are you able to evaluate having the low earner take it at 62 and the high earner at 70? My wife and I have very similar earnings over the years, the delta in benefits is shown to be trivial. I think there still might be a difference. Since only one benefit will continue to be paid to the sole survi...
by David Jay
Wed May 22, 2019 12:56 am
Forum: Investing - Theory, News & General
Topic: Delaying social security = harming nest egg?
Replies: 74
Views: 6242

Re: Delaying social security = harming nest egg?

The conventional wisdom, often discussed among BHs as well as in the general press, is that it’s best to delay taking social security until age 70 if you can, because of the guaranteed yearly 8% increase in benefits for each year you delay. 8% per year guaranteed return is better than many/most oth...
by David Jay
Wed May 22, 2019 12:49 am
Forum: Personal Investments
Topic: $400,000 gift to stepdaughter
Replies: 76
Views: 8689

Re: $400,000 gift to stepdaughter

So with that said, does anyone have thoughts about investing the money long term in a permanent 65% stock/35% fixed income allocation? Initially I plan to invest $325,000 in Vanguard LifeStrategy Growth Fund (VASGX), and $75,000 (or 5 years’ worth of payout) in Vanguard Prime Market Fund (VMMXX), a...
by David Jay
Tue May 21, 2019 12:30 pm
Forum: Personal Finance (Not Investing)
Topic: Postponing Roth Conversion & receive a larger ACA subsidy
Replies: 22
Views: 1072

Re: Postponing Roth Conversion & receive a larger ACA subsidy

I will be doing the same in 2020 (limiting my income to be under the ACA threshold). For me it will require some Roth withdrawals to meet our expenses (expenses > ACA maximum, no significant taxable accounts).
by David Jay
Mon May 20, 2019 10:57 am
Forum: Personal Consumer Issues
Topic: Compound miter saw recommendation
Replies: 42
Views: 2351

Re: Compound miter saw recommendation

Thanks everyone for your inputs. I decided to buy a 12 inch sliding compound sliding miter saw. Will compare different brands and make the decision. Right now leaning towards Makita and DeWalt. Keep an eye open for a Hitachi. A bit more money but sometimes go on sale at the big box stores. Or used.
by David Jay
Mon May 20, 2019 10:52 am
Forum: Personal Investments
Topic: 27 Seeking Portfolio Advice!!!
Replies: 7
Views: 799

Re: 27 Seeking Portfolio Advice!!!

Welcome to the forum! I think an 80-85% stock allocation is fine as long as you don’t “freak” at the first 30-40% downturn (expect maybe 5-6 of those in your investing lifetime). Understand that your asset allocation has not actually been tested until you have been through one, Anyone who started in...
by David Jay
Sun May 19, 2019 6:18 pm
Forum: Personal Consumer Issues
Topic: If you liked “They Shall Not Grow Old” - “Cold Blue” coming May 23
Replies: 13
Views: 1925

If you liked “They Shall Not Grow Old” - “Cold Blue” coming May 23

Cold Blue is a feature-length movie that uses a newly identified archive of World War II color footage of B-17 bombers. One day only on the big screen - May 23rd. The screening includes commentary by the director, not unlike Peter Jackson’s commentary on “They Shall Not Grow Old”. Link: https://www....