Search found 5379 matches

by David Jay
Wed Sep 19, 2018 7:53 pm
Forum: Investing - Help with Personal Investments
Topic: need advice about my 401(k) from previous employer
Replies: 3
Views: 159

Re: need advice about my 401(k) from previous employer

JBTX wrote:
Wed Sep 19, 2018 7:24 pm
To answer, you would really need to post fund selection and expense ratios in current 401k vs funds expense ratios in new 401k
^^^ This
by David Jay
Wed Sep 19, 2018 1:15 pm
Forum: Personal Consumer Issues
Topic: Gift Tax Form
Replies: 3
Views: 215

Re: Gift Tax Form

Are you married? Is your daughter married?

If so, you can transfer $60,000 without using any of your estate exemption. You give $15K to daughter and spouse. Your spouse gives 15K to each of them.
by David Jay
Tue Sep 18, 2018 5:30 pm
Forum: Investing - Help with Personal Investments
Topic: Take winnings and go "defensive"???/ Advice
Replies: 6
Views: 1617

Re: Take winnings and go "defensive"???/ Advice

It's reasonable and appropriate to reduce risk in your portfolio as you approach retirement. See the Michael Kitces article on using a "bond tent" to mitigate sequence of return risk: https://www.kitces.com/blog/managing-portfolio-size-effect-with-bond-tent-in-retirement-red-zone/ It's not necessar...
by David Jay
Tue Sep 18, 2018 4:51 pm
Forum: Personal Finance (Not Investing)
Topic: Life Insurance...Social Security also pays?
Replies: 25
Views: 1366

Re: Life Insurance...Social Security also pays?

Some people layer their policies. For instance, let’s say that you determine you need 1.5M in coverage. Instead of choosing between 20 year and 30 year, you could purchase both a 1M, 20 year policy and a 500K, 30 year policy. Or even 3 policies, 500K each 10 year, 20 year and 30 year.
by David Jay
Tue Sep 18, 2018 11:26 am
Forum: Investing - Help with Personal Investments
Topic: $4900.00 INHERITED IRA
Replies: 9
Views: 849

Re: $4900.00 INHERITED IRA

For simplicity in my life, I take the full 4900 out next year (after the CDs mature) and pay taxes on it. Done. But if you want, you can withdraw the minimum starting at $275 and increasing over your lifespan. Track it and don't forget to include the RMD paperwork in your taxes every year for the re...
by David Jay
Tue Sep 18, 2018 11:12 am
Forum: Investing - Help with Personal Investments
Topic: Thoughts on Portfolio/certain fund
Replies: 15
Views: 381

Re: Thoughts on Portfolio/certain fund

I think where many posters are going with their questions about the types of accounts you hold: Wellington has a significant percentage of bonds and bonds are not recommended for taxable space. If you have any tax-advantaged space then that would be a better place to hold any Wellington rather than ...
by David Jay
Tue Sep 18, 2018 10:21 am
Forum: Personal Finance (Not Investing)
Topic: Question: New tax law on HELOC
Replies: 4
Views: 351

Re: Question: New tax law on HELOC

This article from Kitces may help (also google "TCJA HELOC" for more sources): https://www.kitces.com/blog/tcja-home-mortgage-interest-tax-deduction-for-acquisition-indebtedness-vs-home-equity-heloc/ It appears that the USE of a HELOC is the determining factor. If it was used for primary home acquis...
by David Jay
Tue Sep 18, 2018 10:11 am
Forum: Investing - Theory, News & General
Topic: How often do cap weighted funds get adjusted?
Replies: 16
Views: 635

Re: How often do cap weighted funds get adjusted?

Remember that cap weighted means that there is virtually need to rebalance or adjust due to market fluctuations . This is the beauty of cap weighting. If Apple were to drop by 50% tomorrow, it would not affect the holdings in a cap-weighted fund. The only times there is a need to buy or sell is when...
by David Jay
Tue Sep 18, 2018 8:17 am
Forum: Personal Consumer Issues
Topic: $180 IPhone SE or $90 Iphone 5S
Replies: 33
Views: 2084

Re: $180 IPhone SE or $90 Iphone 5S

ccieemeritus wrote:
Mon Sep 17, 2018 10:19 am
I have an SE and am happy with it. I prefer the smaller iPhone to fit in my pocket.
Same here. I wanted a phone, not a "Phablet"
by David Jay
Tue Sep 18, 2018 8:14 am
Forum: Personal Consumer Issues
Topic: Prepaid SIM card with longest expiration dates
Replies: 4
Views: 323

Re: Prepaid SIM card with longest expiration dates

Caduceus wrote:
Tue Sep 18, 2018 7:36 am
T-Mobile's pay-as-you-go is a minimum of $3 a month, which is too expensive.
I have not seen anything that is less than $36 a year. My son uses TracPhone, which is $100 for a one year prepay (includes 800 minutes).
by David Jay
Mon Sep 17, 2018 7:58 pm
Forum: Investing - Help with Personal Investments
Topic: Asset allocation calculator
Replies: 44
Views: 2422

Re: Asset allocation calculator

Here is Bill Bernstein’s AA recommendation from “The Investor’s Manifesto”:

Image
by David Jay
Mon Sep 17, 2018 5:38 pm
Forum: Investing - Theory, News & General
Topic: 401k: Why not only after-tax?
Replies: 15
Views: 1506

Re: 401k: Why not only after-tax?

I have seen a number of threads where people are balancing pre-tax and after-tax in their 401K accounts. The bottom line: It is more efficient to use pre-tax if you expect to be in a lower tax bracket at withdrawal, it is more efficient to use after-tax if you expect to be in a higher tax bracket at...
by David Jay
Sun Sep 16, 2018 10:07 pm
Forum: Investing - Help with Personal Investments
Topic: Roth IRA vs Mega Backdoor Roth IRA
Replies: 5
Views: 669

Re: Roth IRA vs Mega Backdoor Roth IRA

EvoL:

Exercise caution when it comes to Roth conversions. Due to changes for 2018, recharacterization is no longer available.
by David Jay
Sun Sep 16, 2018 9:46 pm
Forum: Investing - Help with Personal Investments
Topic: Dollar cost average funds being transferred to new retirement account?
Replies: 16
Views: 959

Re: Dollar cost average funds being transferred to new retirement account?

VA_Investor wrote:
Sun Sep 16, 2018 8:56 pm
Or since funds are already invested in advisor's account, can I just treat this as a simplification/reallocation exercise (which also involves moving funds to different account at Vanguard)?
^^^ This. It is invested now.
by David Jay
Sun Sep 16, 2018 5:29 pm
Forum: Investing - Theory, News & General
Topic: Index funds - how do they work? Do passive funds reliant on active funds indirectly?
Replies: 15
Views: 1089

Re: Index funds - how do they work? Do passive funds reliant on active funds indirectly?

Alrite then. I guess I wasn't wrong in my chain of thought. And I have no problems benefiting from other folks trades. :-) I would say that you are wrong about (b), there is no need whatsoever for actively managed mutual funds. Most trades in a given day are made by those trading in individual stoc...
by David Jay
Sun Sep 16, 2018 1:47 pm
Forum: Investing - Theory, News & General
Topic: Equity allocation for Flagship clients?
Replies: 43
Views: 3297

Re: Equity allocation for Flagship clients?

For those not with Vanguard, the Flagship level is $1M so the OP is asking those with portfolios north of $1M and in the decumulation phase about your AA.
by David Jay
Sat Sep 15, 2018 10:53 pm
Forum: Investing - Theory, News & General
Topic: Index funds - how do they work? Do passive funds reliant on active funds indirectly?
Replies: 15
Views: 1089

Re: Index funds - how do they work? Do passive funds reliant on active funds indirectly?

MotoTrojan wrote:
Sat Sep 15, 2018 5:43 pm
You need active traders holding individual stocks but you do not actually need active funds.
Agree.

The emphasis is on “traders”, not “holding”. It is the action of trading that is the pricing mechanism. Holding stocks does not set prices.
by David Jay
Sat Sep 15, 2018 2:22 pm
Forum: Personal Finance (Not Investing)
Topic: Delaying Social Security Until 70
Replies: 87
Views: 5613

Re: Delaying Social Security Until 70

For married couples, the math can work differently.

In our case, my PIA is about 4 times my spouse’s PIA. The optimal strategy is for my spouse to file as early as possible and me to delay to age 70.
by David Jay
Sat Sep 15, 2018 1:01 pm
Forum: Investing - Help with Personal Investments
Topic: Overfunding Tax-Advantaged Accounts?
Replies: 4
Views: 535

Re: Overfunding Tax-Advantaged Accounts?

If you intend to retire before 59.5 you will need to take living expenses from Roth (contributions only) and taxable. So you need enough in those 2vehicles to cover expenses until 59.5

[yes, I know some plans allow withdrawal from 401K if you end employment at age 55 but that is plan specific]
by David Jay
Sat Sep 15, 2018 12:55 pm
Forum: Investing - Help with Personal Investments
Topic: Mom has retired and I need to help
Replies: 12
Views: 2067

Re: Mom has retired and I need to help

Putting all of the money in a single TargetRetirement or LifeStrategy fund in the tIRA and Roth is a great strategy. I have recommended a LS fund to my wife in my “Dear [spouse]” letter. TR funds all get converted to Target Income at some point, I think 5 years after the date in the fund name. That ...
by David Jay
Fri Sep 14, 2018 6:24 pm
Forum: Investing - Help with Personal Investments
Topic: Help with Ameriprise annuity
Replies: 8
Views: 594

Re: Help with Ameriprise annuity

John21 wrote:
Fri Sep 14, 2018 6:04 pm
I would consider just surrendering the annuity and taking the tax hit if it wasn't for the 10% IRS penalty.
Wait, what 10% penalty? Are you holding this inside an IRA???
by David Jay
Fri Sep 14, 2018 1:14 pm
Forum: Investing - Help with Personal Investments
Topic: Help understanding asset allocation
Replies: 4
Views: 319

Re: Help understanding asset allocation

Certain accounts are better for different asset classes, so it is normal that your individual accounts are NOT 80/20. For instance, bonds should not be in a taxable account if you have tax-advantaged space (401K, etc.) available. Following this advice, a taxable account would be 100/0. It is the ove...
by David Jay
Thu Sep 13, 2018 11:03 pm
Forum: Investing - Help with Personal Investments
Topic: Is it LMP/RP, is it Buckets, is it rising equity AA, is it mental accounting, or is it just MLA? (Myopic loss aversion)?
Replies: 17
Views: 1218

Re: Is it LMP/RP, is it Buckets, is it rising equity AA, is it mental accounting, or is it just MLA? (Myopic loss aversi

I have been very influenced by the Bond Tent. I am retiring in 2019 at age 62 and I have prepared by taking my AA down to 50/50 (I was 100% equities just 5 years ago). As I spend my short term bonds in the years between retirement and start of SS it appears that my AA will drift back up to around 65...
by David Jay
Thu Sep 13, 2018 10:54 pm
Forum: Investing - Help with Personal Investments
Topic: Index allocation question.
Replies: 13
Views: 720

Re: Index allocation question.

This thread may be getting away from the original poster’s question. Keep in mind that our new member is asking about dividing the market up into smaller “slices” with multiple funds, not tilting away from market weight.
by David Jay
Thu Sep 13, 2018 10:44 pm
Forum: Investing - Theory, News & General
Topic: How Boglehead 3 Fund portfolio performed?
Replies: 4
Views: 1042

Re: How Boglehead 3 Fund portfolio performed?

Keep in mind that the 3 fund portfolio includes a whole range of Asset Allocations, there is no single “3 Fund” portfolio to evaluate.

If you want to see how a specific AA performed, simply plug the ratios into Portfolio Visualizer.
by David Jay
Thu Sep 13, 2018 9:10 pm
Forum: Investing - Theory, News & General
Topic: Dumb TDF question [Target Date Fund]
Replies: 5
Views: 379

Re: Dumb TDF question

If you don’t want that you would need to move some of your assets to a different fund to change the aggregate AA of your portfolio. which would beget the question why they invested in that target date to begin with... I would suggest that portfolio investments are likely to change with stage-of-lif...
by David Jay
Thu Sep 13, 2018 8:15 pm
Forum: Investing - Help with Personal Investments
Topic: LPL Financial Transfer- Newbie
Replies: 4
Views: 325

Re: LPL Financial Transfer- Newbie

Just to reinforce what Jack said, always work with the financial institution that is receiving the funds because they have a vested interest in having things go smoothly.
by David Jay
Thu Sep 13, 2018 7:22 pm
Forum: Investing - Help with Personal Investments
Topic: Small cap tilt
Replies: 24
Views: 1591

Re: Small cap tilt

The premium for small cap is not as clear the premium for value. I have a modest tilt to Small Cap Value, about 15% of my stock allocation.
by David Jay
Thu Sep 13, 2018 7:12 pm
Forum: Investing - Help with Personal Investments
Topic: Index allocation question.
Replies: 13
Views: 720

Re: Index allocation question.

Welcome to the forum! To answer your question, it is actually the other way around. If you only have access to a SP500 fund in your 401K then you can add some Extended Market in a personal account in order to get to the equivalent of Total Stock (81% SP500, 19% Extended). There is little advantage t...
by David Jay
Thu Sep 13, 2018 6:55 pm
Forum: Investing - Help with Personal Investments
Topic: Help with Ameriprise annuity
Replies: 8
Views: 594

Re: Help with Ameriprise annuity

2.7% in fees? Me, I would pay 24% taxes on the $51K and get out.
by David Jay
Thu Sep 13, 2018 6:40 pm
Forum: Investing - Help with Personal Investments
Topic: 401k to Roth IRA Conversion - Am I misunderstanding
Replies: 5
Views: 420

Re: 401k to Roth IRA Conversion - Am I misunderstanding

It should work as you say, I don’t see any “bites”. If it was me I would roll the post-tax portion into a Roth and roll the pre-tax funds into a tIRA, just for the sake of paper trail and record keeping. There are no tax consequences at this step of the process. Then I would do a conversion of the t...
by David Jay
Thu Sep 13, 2018 4:04 pm
Forum: Investing - Help with Personal Investments
Topic: How to stay the course when you “think” you can outsmart the market
Replies: 36
Views: 2147

Re: How to stay the course when you “think” you can outsmart the market

Thesaints wrote:
Thu Sep 13, 2018 4:02 pm
Doesn't have to be your own experience, though...
True. I like the quote: “Personal experience is the best teacher. Someone else’s experience is the fastest teacher.”

[edit] and one lifetime isn’t enough to make every mistake personally. Not that I haven’t been working on it...
by David Jay
Thu Sep 13, 2018 4:01 pm
Forum: Investing - Help with Personal Investments
Topic: How to stay the course when you “think” you can outsmart the market
Replies: 36
Views: 2147

Re: How to stay the course when you “think” you can outsmart the market

Good decisions come from experience.

Experience comes from bad decisions.

It looks like you don’t yet have enough experience...
by David Jay
Thu Sep 13, 2018 3:55 pm
Forum: Investing - Theory, News & General
Topic: Dumb TDF question [Target Date Fund]
Replies: 5
Views: 379

Re: Dumb TDF question

Each fund family has their own strategy.

For Vanguard, every fund eventually is rolled into TargetRetirement Income, which is permanently 30/70.

If you don’t want that you would need to move some of your assets to a different fund to change the aggregate AA of your portfolio.
by David Jay
Thu Sep 13, 2018 3:45 pm
Forum: Investing - Help with Personal Investments
Topic: Determining when to take Social Security if you don’t need the money
Replies: 21
Views: 1744

Re: Determining when to take Social Security if you don’t need the money

Will you still have adequate cash flow after one spouse passes (the financial worst case choice of spouse)? If there is any question then the higher earning spouse should delay to age 70 to provide the largest possible “insurance” benefit. The other spouse can file early to create some cash for inve...
by David Jay
Thu Sep 13, 2018 9:30 am
Forum: Investing - Theory, News & General
Topic: Argument for taking social security before 70. Comments?
Replies: 111
Views: 7237

Re: Argument for taking social security before 70. Comments?

My age 70 is $2000 (lifetime!) over age 68. Are you sure? At what age do you project your lifetime to end? Yes. Because of the spousal issues I laid out in the portion you snipped. This is a combined analysis for two spouses: Spouse is similar age, but my PIA is 4x her PIA. She files early. And the...
by David Jay
Wed Sep 12, 2018 7:55 pm
Forum: Investing - Help with Personal Investments
Topic: Advice for a 70 year old with windfall
Replies: 7
Views: 1556

Re: Advice for a 70 year old with windfall

You have to keep the funds in a Roth for 5 years so this does not meet his requirement of having access to the funds. I agree with other posters that a rollover to a Roth would require paying tax on the entire amount in one tax year. But for clarity, if he has had a Roth (any Roth) open for 5 years...
by David Jay
Wed Sep 12, 2018 7:38 pm
Forum: Investing - Theory, News & General
Topic: Argument for taking social security before 70. Comments?
Replies: 111
Views: 7237

Re: Argument for taking social security before 70. Comments?

JoeRetire wrote:
Wed Sep 12, 2018 7:04 pm
David Jay wrote:
Wed Sep 12, 2018 4:07 pm
My age 70 is $2000 (lifetime!) over age 68.
Are you sure? At what age do you project your lifetime to end?
Yes. Because of the spousal issues I laid out in the portion you snipped. This is a combined analysis for two spouses:
Spouse is similar age, but my PIA is 4x her PIA. She files early.
by David Jay
Wed Sep 12, 2018 4:46 pm
Forum: Investing - Help with Personal Investments
Topic: Reinvesting the cash payout from startup stocks [can CG tax be avoided?]
Replies: 2
Views: 289

Re: Reinvesting the cash payout from startup stocks [can CG tax be avoided?]

Is there any option for me to do any reinvestment in stocks or something else to avoid the capital gains tax that I will have to pay on this stock payout? Nope. As FiveK says, you can offset against capital losses if you have any losers that you can sell (probably not a lot of those after a 10 year...
by David Jay
Wed Sep 12, 2018 4:25 pm
Forum: Investing - Theory, News & General
Topic: Why do we expect TSM to keep growing?
Replies: 59
Views: 5990

Re: Why do we expect TSM to keep growing?

TSM invests in real companies with real earnings. The leadership of these companies will continue to deliver goods and services in new and innovative ways, increasing the value of the companies. If you don't believe that business case, I don't know what to buy. Government bonds won't work because th...
by David Jay
Wed Sep 12, 2018 4:18 pm
Forum: Investing - Help with Personal Investments
Topic: Commingling pre-tax with post-tax IRA contributions
Replies: 8
Views: 544

Re: Commingling IRA and tIRA

Have you investigated whether or not your current employer 401K will take rollovers from your IRA. This is a way to "empty" your IRA, then you can do backdoor Roth contributions with after tax contributions.

Backdoor Roth details in the Wiki, link: https://www.bogleheads.org/wiki/Backdoor_Roth_IRA
by David Jay
Wed Sep 12, 2018 4:07 pm
Forum: Investing - Theory, News & General
Topic: Argument for taking social security before 70. Comments?
Replies: 111
Views: 7237

Re: Argument for taking social security before 70. Comments?

Watty wrote:
Wed Sep 12, 2018 12:24 am
When comparing strategies you have to be careful to not just look at to see what is best, but also how much better.
Agree. My age 70 is $2000 (lifetime!) over age 68.

Spouse is similar age, but my PIA is 4x her PIA. She files early.
by David Jay
Wed Sep 12, 2018 1:51 pm
Forum: Investing - Help with Personal Investments
Topic: Vanguard ETF to Fidelity ETF
Replies: 9
Views: 754

Re: Vanguard ETF to Fidelity ETF

oner wrote:
Wed Sep 12, 2018 11:01 am
I was simply wondering for bookkeeping simplicity if it would be possible to exchange them for their Fidelity ETFs without triggering a taxable event.
No, it is not.
by David Jay
Tue Sep 11, 2018 8:01 pm
Forum: Investing - Theory, News & General
Topic: Barron's--Vanguard Is Losing Battles on Two Fronts in Fee Wars
Replies: 53
Views: 4527

Re: Barron's--Vanguard Is Losing Battles on Two Fronts in Fee Wars

Low fees are great, but what's behind the curtain? Looking through Fidelity's website, low fees for the couple of ZERO funds are more than offset by extravagant fees on the other 300+ funds. And they deliberately hide some of their low cost funds. If you type in "Freedom Index 2040" (the low cost i...
by David Jay
Tue Sep 11, 2018 3:59 pm
Forum: Investing - Theory, News & General
Topic: Barron's--Vanguard Is Losing Battles on Two Fronts in Fee Wars
Replies: 53
Views: 4527

Re: Barron's--Vanguard Is Losing Battles on Two Fronts in Fee Wars

Low fees are great, but what's behind the curtain? Looking through Fidelity's website, low fees for the couple of ZERO funds are more than offset by extravagant fees on the other 300+ funds. And they deliberately hide some of their low cost funds. If you type in "Freedom Index 2040" (the low cost i...
by David Jay
Tue Sep 11, 2018 3:46 pm
Forum: Personal Consumer Issues
Topic: How often do you guys get alignment done on your cars?
Replies: 59
Views: 3463

Re: How often do you guys get alignment done on your cars?

Only if I replace a suspension component (tie rod end, etc.) or when I see uneven tire wear.

I do never done it on a scheduled basis.
by David Jay
Mon Sep 10, 2018 6:45 pm
Forum: Investing - Help with Personal Investments
Topic: Allianz 222 annuity to counter sequence risk?
Replies: 10
Views: 655

Re: Allianz 222 annuity to counter sequence risk?

Nate79 wrote:
Mon Sep 10, 2018 6:37 pm
A fixed indexed annuity? Is this accountant also a salesman?

What a nasty product.
I looked it up, it also has a 10 year withdrawal penalty.
by David Jay
Mon Sep 10, 2018 6:27 pm
Forum: Investing - Help with Personal Investments
Topic: Allianz 222 annuity to counter sequence risk?
Replies: 10
Views: 655

Re: Allianz 222 annuity to counter sequence risk?

Please tell me he wasn’t recommending that you do this with IRA funds...
by David Jay
Mon Sep 10, 2018 6:20 pm
Forum: Investing - Help with Personal Investments
Topic: Allianz 222 annuity to counter sequence risk?
Replies: 10
Views: 655

Re: Allianz 222 annuity to counter sequence risk?

Welcome to the forum. Yes, there are many ways to preserve capital besides giving it to an insurance company. I am a little bit surprised that this came from your accountant. Most accountants do not make specific financial product recommendations. I would ask him who is receiving the commission on t...
by David Jay
Mon Sep 10, 2018 3:41 pm
Forum: Investing - Help with Personal Investments
Topic: Portfolio Review Request - Taxes, Risk, and Investing for Minors
Replies: 6
Views: 442

Re: Portfolio Review Request - Taxes, Risk, and Investing for Minors

Also I read your post from August about inheriting shares. Those shares should have all been sold by now before they gained anymore and invested in passively-managed, low-expense ratio index funds. Was it a hassle to work with CompuShares? No step-up on those shares so I still own 'em :( This is an...