Search found 5988 matches

by David Jay
Sun Jan 20, 2019 10:06 pm
Forum: Investing - Help with Personal Investments
Topic: Vanguard Rollover IRA Brokerage Account - Please Advice
Replies: 2
Views: 154

Re: Vanguard Rollover IRA Brokerage Account - Please Advice

Like Ducky, I agree that mixing TargetDate funds and individual funds is not optimal. Either put it all in TD 2045 or move the TD money into the other funds.
by David Jay
Sun Jan 20, 2019 8:29 pm
Forum: Personal Finance (Not Investing)
Topic: "Buy term life because it is cheap"
Replies: 10
Views: 827

Re: "Buy term life because it is cheap"

I am early 30's. I am looking for a 2+ mill dollar policy (1.5m x 20 and 1 m x 30). The 30 year term is probably the reason. That puts the end of the term in your early 60s, which dramatically increases the pool risk (i.e. costs) for the insurance company. The idea is to grow is your portfolio to t...
by David Jay
Sun Jan 20, 2019 8:14 pm
Forum: Investing - Help with Personal Investments
Topic: Which funds are best in my 401k?
Replies: 3
Views: 205

Re: Which funds are best in my 401k?

happenstance wrote:
Sun Jan 20, 2019 7:47 pm
Why are you interested in MRRGX and DHLYX? These are both relatively expensive and are not index funds.
That Meridian fund’s ER (.85) is high enough to give a Boglehead the vapors... :wink:
by David Jay
Sun Jan 20, 2019 8:08 pm
Forum: Investing - Theory, News & General
Topic: Why is index investing better than other quantitative strategies?
Replies: 38
Views: 3224

Re: Why is index investing better than other quantitative strategies?

PluckyDucky wrote:
Sat Jan 19, 2019 11:25 pm
Imagine a world with no index funds.
William Sharpe’s math still works in a world without index funds. It is just a lot easier to “own the market” with a “Total Market” mutual fund or ETF.
by David Jay
Sun Jan 20, 2019 7:44 pm
Forum: Investing - Help with Personal Investments
Topic: Which funds are best in my 401k?
Replies: 3
Views: 205

Re: Which funds are best in my 401k?

Welcome to the forum! At Bogleheads, we subscribe to “CMH” - the “Cost Matters Hypothesis”. Expenses add up over the decades and it is something you can control. Use low expense, broad based index funds. You have a great set of low expense offerings: Fidelity Total Market, ER .015 Fidelity Total Int...
by David Jay
Sun Jan 20, 2019 7:25 pm
Forum: Investing - Help with Personal Investments
Topic: Retired - One paycheck in 2019 - Roth IRA?
Replies: 16
Views: 927

Re: Retired - One paycheck in 2019 - Roth IRA?

If you don’t have a Roth, you need to open one regardless to start the “5 year clock” that affects taxability of earnings and conversions. Minimum contribution is fine, just get it open. [edit] At age 59.5 and Roth open for 5 years, all distributions are qualified. Before that there are limitations ...
by David Jay
Sun Jan 20, 2019 6:24 pm
Forum: Investing - Help with Personal Investments
Topic: Portfolio Check up, Fixed Income Opinions?
Replies: 1
Views: 139

Re: Portfolio Check up, Fixed Income Opinions?

Welcome to the forum! A few thoughts: 1. 60/40 is the most vanilla AA. It is a good AA for a person who has never been “tested”. You can reevaluate your AA after you withdraw your down payment cash (your bond percentage will drop when you withdraw). 2. The barbell of short-ultra safe and intermediat...
by David Jay
Sat Jan 19, 2019 11:14 pm
Forum: Investing - Help with Personal Investments
Topic: Looking to roll over my old 401k. Which IRA should I choose?
Replies: 11
Views: 481

Re: Looking to roll over my old 401k. Which IRA should I choose?

Let’s start at the beginning: custodian. There are a lot of possible low-cost brokerages but the most commonly mentioned around here are Vanguard, Fidelity and Schwab. All provide a wide selection of low cost mutual funds.
by David Jay
Sat Jan 19, 2019 10:55 pm
Forum: Investing - Help with Personal Investments
Topic: Fund Selection: Retirement in 15 years
Replies: 4
Views: 482

Re: Fund Selection: Retirement in 15 years

Welcome to the forum! ...plan to park my money in a mix of funds to cover the bases for a relatively lower-risk strategy. Many funds is not the same thing as covering the bases. One fund, “Total World”, could cover the bases for global stocks. Broad based index funds will provide better coverage tha...
by David Jay
Sat Jan 19, 2019 10:49 pm
Forum: Investing - Theory, News & General
Topic: Is using an Asset Allocation Mental Accounting?
Replies: 43
Views: 1758

Re: Is using an Asset Allocation Mental Accounting?

It’s not just the size of the portfolio, it is also the stage of life . I was a 100% Stocks into my mid-50s but as I approached retirement I created a “bond tent” comprising my first 6 years of living expenses, which put me at about 50/50. My AA will drift higher as I spend down my portfolio prior t...
by David Jay
Sat Jan 19, 2019 9:48 pm
Forum: Investing - Help with Personal Investments
Topic: Pre-Retirement Review- Need Wise & Witty Bogleheads
Replies: 12
Views: 2070

Re: Pre-Retirement Review- Need Wise & Witty Bogleheads

For retirement, it is all about EXPENSES. If you don’t know your living expenses, the amount required could be zero or 10 million.
by David Jay
Sat Jan 19, 2019 9:35 pm
Forum: Investing - Help with Personal Investments
Topic: Am I On the Right Track?
Replies: 8
Views: 831

Re: Am I On the Right Track?

3. Should I move some 529 funds over to retirement? No - why pay the penalties now? Let the funds grow and pay the penalties if/when you withdraw fund for non-educational use. I meant should I move principle contributions from 529 that would not be subject to penalty. Absolutely, stop all 529 contr...
by David Jay
Sat Jan 19, 2019 8:55 pm
Forum: Investing - Help with Personal Investments
Topic: Why BNDX (TOTAL INTL BD) has had better 5 year returns than BND (Total Bond Market ETF) despite lower SEC yield
Replies: 5
Views: 621

Re: Why BNDX (TOTAL INTL BD) has had better 5 year returns than BND (Total Bond Market ETF) despite lower SEC yield

I hold Vanguard Total US Bond (Admiral class), so I have been following it closely over the past couple of years. The recent US interest rate increases have significantly increased the SEC yield over the last few months. A year ago the SEC yield was something like 1.9%. SEC yield is forward-looking,...
by David Jay
Sat Jan 19, 2019 8:38 pm
Forum: Investing - Theory, News & General
Topic: How much money does one need to setup a private S&P 500 fund?
Replies: 52
Views: 3142

Re: How much money does one need to setup a private S&P 500 fund?

When the stocks pay dividends, you have to figure out how to use them to buy more of the stocks in the S&P 500 (not necessarily the stocks that paid the dividends). My bots can do that without breaking a sweat. I'm amazed at the work Vanguard's bots did for me. They worked for a year at what an adv...
by David Jay
Sat Jan 19, 2019 8:22 pm
Forum: Investing - Help with Personal Investments
Topic: Am I On the Right Track?
Replies: 8
Views: 831

Re: Am I On the Right Track?

1. How would you prioritize future account allocations? Do I need to be maxing out my 403b or go straight to taxable accounts after Roth is maxed? You should take advantage of all tax-advantaged space before saving in taxable unless your 403B has incredibly high costs. Can you get a hold of the ER ...
by David Jay
Sat Jan 19, 2019 7:58 pm
Forum: Investing - Help with Personal Investments
Topic: VNYTX: Municipal Bond Fund
Replies: 5
Views: 529

Re: VNYTX: Municipal Bond Fund

Hi Bogelheads, I have a question about VNYTX. I have $900k in this fund. I am a high income --$400k/yr--New York State resident. Right now we are getting monthly checks for around $2400 from this fund. Of course, this is tax free income. Is it possible for the fund in the future to have negative re...
by David Jay
Sat Jan 19, 2019 7:27 pm
Forum: Investing - Theory, News & General
Topic: How much money does one need to setup a private S&P 500 fund?
Replies: 52
Views: 3142

Re: How much money does one need to setup a private S&P 500 fund?

J G Bankerton wrote:
Sat Jan 19, 2019 7:11 pm
I found this S&P 500 fund, RYXYS, fund size: $202.6 million. The low AUM may have something to do with an expense ratio of 2.33%. :shock:
So I can set up a private fund for way under a billion.
Not with a .04 ER, you can’t.
by David Jay
Sat Jan 19, 2019 7:23 pm
Forum: Investing - Theory, News & General
Topic: Is using an Asset Allocation Mental Accounting?
Replies: 43
Views: 1758

Re: Is using an Asset Allocation Mental Accounting?

willthrill81 wrote:
Sat Jan 19, 2019 7:11 pm
That's true with regard to the portfolio, but most investors are more concerned about the risk to themselves than the risk to their portfolio.
Without speaking for Timelord, I think this phrasing gets us to the heart of the issue.
by David Jay
Sat Jan 19, 2019 6:07 pm
Forum: Investing - Theory, News & General
Topic: How much money does one need to setup a private S&P 500 fund?
Replies: 52
Views: 3142

Re: How much money does one need to setup a private S&P 500 fund?

J G Bankerton wrote:
Sat Jan 19, 2019 4:47 pm
Still there must be a sum where it makes sense to setup a private index fund.
No, not in the current reality.

I like voting my shares too; one can't do that with mutual funds.
That, at least, is a valid interest.
by David Jay
Sat Jan 19, 2019 11:32 am
Forum: Investing - Help with Personal Investments
Topic: Should I dump our wealth planner/financial advisor?
Replies: 38
Views: 2934

Re: Should I dump our wealth planner/financial advisor?

Another option is to go ahead and sign up for the Vanguard Personal Advisory Service. Let them setup your portfolio for 0.3% a year, then after a quarter of learning and feeling comfortable, cancel the service and diy. https://investor.vanguard.com/advice/personal-advisor I like this recommendation...
by David Jay
Sat Jan 19, 2019 11:18 am
Forum: Investing - Theory, News & General
Topic: A look at equal weighting as we bid farewell to EQWS
Replies: 26
Views: 863

Re: A look at equal weighting as we bid farewell to EQWS

E.g https://www.portfoliovisualizer.com/fund-performance?s=y&symbol=RYU&benchmark=xlu&endDate=01%2F18%2F2019 https://i.imgur.com/Zz0r6mM.png I think selecting utilities as your illustration is a very weak example vis-a-vis the general market. Almost no creative distruction in this heavily regulated...
by David Jay
Sat Jan 19, 2019 10:59 am
Forum: Personal Finance (Not Investing)
Topic: FIL diagnosed with Alzheimers/Dementia at age 55 -- any advice for financial help?
Replies: 8
Views: 1098

Re: FIL diagnosed with Alzheimers/Dementia at age 55 -- any advice for financial help?

Watty wrote:
Sat Jan 19, 2019 10:47 am
It would be good to meet with an lawyer that specializes in elder care.
^^^ This!
by David Jay
Fri Jan 18, 2019 10:17 pm
Forum: Personal Finance (Not Investing)
Topic: [Wash sale concern - Are these stocks substantially identical?]
Replies: 49
Views: 1667

Re: [Wash sale concern - Are these stocks substantially identical?]

You shifted the argument from a 401K to an IRA. A 401K is company sponsored, and in the event that one is not a majority stockholder in one’s employer, the 401K accounts are not controlled by the employee. The employer controls the fund offerings, how the plan costs are allocated and so on. In my c...
by David Jay
Fri Jan 18, 2019 8:47 pm
Forum: Personal Finance (Not Investing)
Topic: [Wash sale concern - Are these stocks substantially identical?]
Replies: 49
Views: 1667

Re: [Wash sale concern - Are these stocks substantially identical?]

Acquiring . The 401K sale and purchase is not for your account, it is for your employer’s account. You do not have actual possession of (acquire) anything in your 401K. That is the difference. The IRS and tax court have ruled that a taxpayer acquires stocks and securities purchased through corporat...
by David Jay
Fri Jan 18, 2019 1:32 pm
Forum: Personal Finance (Not Investing)
Topic: [Wash sale concern - Are these stocks substantially identical?]
Replies: 49
Views: 1667

Re: [Wash sale concern - Are these stocks substantially identical?]

Acquiring . The 401K sale and purchase is not for your account, it is for your employer’s account. You do not have actual possession of (acquire) anything in your 401K. That is the difference. The IRS and tax court have ruled that a taxpayer acquires stocks and securities purchased through corporat...
by David Jay
Fri Jan 18, 2019 9:40 am
Forum: Investing - Help with Personal Investments
Topic: Retire in 2 years. Advice for plan for withdrawals, Roth conversions & SS
Replies: 37
Views: 2905

Re: Retire in 2 years. Advice for plan for withdrawals, Roth conversions & SS

ObliviousInvestor wrote:
Fri Jan 18, 2019 9:06 am
This was a great explanation. :thumbsup :thumbsup
I’m honored...

(Oblivious Investor is Mike Piper, creator of opensocialsecurity.com)
by David Jay
Thu Jan 17, 2019 11:14 pm
Forum: Personal Finance (Not Investing)
Topic: [Wash sale concern - Are these stocks substantially identical?]
Replies: 49
Views: 1667

Re: [Wash sale concern - Are these stocks substantially identical?]

I think the burden of proof is on those who believe it is a wash sale, under the legal doctrine that “everything that is not forbidden is legal”. I don't know if the IRS follows that doctrine. Even if they did, the law (26 U.S. Code § 1091) has a blanket prohibition on acquiring substantially ident...
by David Jay
Thu Jan 17, 2019 8:40 pm
Forum: Investing - Theory, News & General
Topic: If Everyone Did The 3 Fund Vanguard Strategy, Would Vanguard Be Controlling US Companies?
Replies: 10
Views: 1415

Re: If Everyone Did The 3 Fund Vanguard Strategy, Would Vanguard Be Controlling US Companies?

What is behind your question? What assurances are you seeking?

Your hypotheticals (as others have noted) are completely unrealistic, so you must be trying to understand something but you may be uncomfortable just asking straight out???
by David Jay
Thu Jan 17, 2019 6:39 pm
Forum: Investing - Help with Personal Investments
Topic: Retire in 2 years. Advice for plan for withdrawals, Roth conversions & SS
Replies: 37
Views: 2905

Re: Retire in 2 years. Advice for plan for withdrawals, Roth conversions & SS

reddison wrote:
Thu Jan 17, 2019 6:33 pm
I think I get it now - Duh! It's a one time clock - not 5 years each time you convert. Right?
Bingo!

per person, of course (the “I” in IRA is for “individual”)
by David Jay
Thu Jan 17, 2019 6:16 pm
Forum: Investing - Help with Personal Investments
Topic: Retire in 2 years. Advice for plan for withdrawals, Roth conversions & SS
Replies: 37
Views: 2905

Re: Retire in 2 years. Advice for plan for withdrawals, Roth conversions & SS

SuzBanyon - Is there any reason I'd want to start Roth conversions now and pay 32% tax versus waiting until I'll be in a much lower tax bracket? I am not Suz, but I understand what she said about the 5 year clock: All withdrawals from Roth’s are tax free if you meet (2) criteria - that the owner is...
by David Jay
Thu Jan 17, 2019 5:09 pm
Forum: Investing - Help with Personal Investments
Topic: Retire in 2 years. Advice for plan for withdrawals, Roth conversions & SS
Replies: 37
Views: 2905

Re: Retire in 2 years. Advice for plan for withdrawals, Roth conversions & SS

3. SS – I have looked at the opensocialsecurity link, and it says the optimal is for my wife to start drawing at 62, and me at 70. I am just not sure that is best and we won’t really need that money per se. So I am thinking that we could wait until 70 for both, or maybe just start drawing for both ...
by David Jay
Thu Jan 17, 2019 3:33 pm
Forum: Personal Finance (Not Investing)
Topic: Social Security work only 1 quarter in a year
Replies: 6
Views: 720

Re: Social Security work only 1 quarter in a year

Short version: This year I will only have income in the 1st quarter. Now my question is for social security calculations is this still considered a full year income for my best earning 30 years? Short version: Yes Long version: I am currently on an expat contract in Switzerland and this will end by...
by David Jay
Thu Jan 17, 2019 2:16 pm
Forum: Personal Finance (Not Investing)
Topic: [Wash sale concern - Are these stocks substantially identical?]
Replies: 49
Views: 1667

Re: [Wash sale concern - Are these stocks substantially identical?]

FlyingHigh wrote:
Thu Jan 17, 2019 9:43 am
I plan on moving my Vanguard Trad IRA to my Fidelity 401K soon to allow me to do Backdoor ROTHs, that would also eliminate one of my VTIAX holdings.
Great idea!
by David Jay
Thu Jan 17, 2019 2:13 pm
Forum: Personal Finance (Not Investing)
Topic: [Wash sale concern - Are these stocks substantially identical?]
Replies: 49
Views: 1667

Re: [Wash sale concern - Are these stocks substantially identical?]

the transaction is not reported to any agency so no one can come after you. If the IRS audits you and asks for your 401k transactions, I imagine that you would need to comply. Likelihood of getting caught should not factor into how one fills out their tax return. We got into this before on another ...
by David Jay
Thu Jan 17, 2019 9:31 am
Forum: Personal Finance (Not Investing)
Topic: [Wash sale concern - Are these stocks substantially identical?]
Replies: 49
Views: 1667

Re: [Wash sale concern - Are these stocks substantially identical?]

My 401K at Fidelity... Your 401K does not have any bearing on wash sales. While there is no specific guidance from the IRS on 401K-as-wash-sale (and you would think there would be if it was a problem, after a few decades of 401K operation), your company’s 401K custodian does no reporting of individ...
by David Jay
Wed Jan 16, 2019 9:27 pm
Forum: Investing - Help with Personal Investments
Topic: Why is my fund balance lower than my cost basis?
Replies: 4
Views: 753

Re: Why is my fund balance lower than my cost basis?

Hi Travis, welcome to the forum. I purchased shares of Fidelity's S&P 500 Index fund (FXAIX) between May 2014 and December 2016 for an average price between $70 and $80. Today's share price is $90.76. Why is my current cost basis for this fund higher than the account balance? Thank you! If you purch...
by David Jay
Wed Jan 16, 2019 5:29 pm
Forum: Investing - Help with Personal Investments
Topic: TIRA Roth Conversion and Backdoor Roth IRA in the same year possible?
Replies: 2
Views: 154

Re: TIRA Roth Conversion and Backdoor Roth IRA in the same year possible?

azianbob wrote:
Wed Jan 16, 2019 5:26 pm
But does the TIRA balance have to be $0 as of current year end or prior year end?
At year end, so as long as you get it all done by 12/31/2019 you are golden.
by David Jay
Wed Jan 16, 2019 5:23 pm
Forum: Investing - Theory, News & General
Topic: John Bogle has died at age 89
Replies: 847
Views: 43350

Re: John Bogle, who founded Vanguard and revolutionized retirement savings, dies at 89

He could’a been a billionaire. Instead he made hundreds of thousands of us investors millionaires.
by David Jay
Wed Jan 16, 2019 12:10 pm
Forum: Investing - Theory, News & General
Topic: Vanguard will use blockchain to share index data
Replies: 69
Views: 8503

Re: Vanguard will use blockchain to share index data

How is this different from the basic cops and robbers game. New "cop strategy"... soon... new "robber strategy" to defeat it? There will always be ways to defeat the human element (think phishing emails), but the entire point of blockchain is that the technology is pretty darn secure (never say nev...
by David Jay
Wed Jan 16, 2019 10:01 am
Forum: Personal Finance (Not Investing)
Topic: Which Type of Annuities Did You Choose and Why
Replies: 18
Views: 1057

Re: Which Type of Annuities Did You Choose and Why

TravelforFun wrote:
Wed Jan 16, 2019 12:21 am
I'm meeting with an annuity advisor salesperson tomorrow
Fixed that for you.
by David Jay
Wed Jan 16, 2019 9:46 am
Forum: Personal Finance (Not Investing)
Topic: Which Type of Annuities Did You Choose and Why
Replies: 18
Views: 1057

Re: Which Type of Annuities Did You Choose and Why

... or possibly (very bad) a so-called " fixed indexed annuity ." Name change alert: The new name is: “ equity indexed annuity ”. Note that FINRA (the regulating agency) actually issued a warning about fixed index annuities - this is probably part of the reason for the name change. Wiki has this wa...
by David Jay
Wed Jan 16, 2019 9:02 am
Forum: Investing - Theory, News & General
Topic: When would you stop being a Boglehead?
Replies: 95
Views: 7363

Re: When would you stop being a Boglehead?

When would you stop being a Boglehead? When more than 50% of Active managers can beat their corresponding indexes per the SPIVA scorecard. I used to be a stock-picker and I would become one again if there were easily exploitable market mispricings (due to some unknown future financial industry chan...
by David Jay
Tue Jan 15, 2019 9:55 pm
Forum: Personal Finance (Not Investing)
Topic: My Withdrawal Strategy - Poke holes in it
Replies: 18
Views: 2088

Re: My Withdrawal Strategy - Poke holes in it

What is the point of a cash account? If you withdraw from it, you just have to move money from somewhere else to replenish it. As opposed to ? Keeping everything invested then just selling what you need ? What would you do in a bear market ? You have 40% bonds. Hold a couple of years of expenses in...
by David Jay
Tue Jan 15, 2019 9:44 pm
Forum: Investing - Theory, News & General
Topic: Cryptocurrency
Replies: 10
Views: 1098

Re: Cryptocurrency

Considering that crypto is based on blockchain technology, cryptos are the future. You need to separate the two to properly understand: 1. Blockchain is the future of secure transactions, see thread on Vanguard’s use of blockchain here: https://www.bogleheads.org/forum/viewtopic.php?t=234444 2. Cry...
by David Jay
Tue Jan 15, 2019 6:04 pm
Forum: Investing - Theory, News & General
Topic: IOTA the new crypto?
Replies: 9
Views: 629

Re: IOTA the new crypto?

It's a competing blockchain that does not want to be called a blockchain. It's single upside is there's no mining. It's downside is there's no point to it . George Gilder argues that blockchain is the future of secure transactions. Vanguard is evaluating blockchain for secure financial data transfe...
by David Jay
Tue Jan 15, 2019 5:35 pm
Forum: Investing - Theory, News & General
Topic: An Annuity Hater Revisits SPIAs
Replies: 22
Views: 2866

Re: An Annuity Hater Revisits SPIAs

Stormbringer wrote:
Tue Jan 15, 2019 5:17 pm
David Jay wrote:
Tue Jan 15, 2019 2:30 pm
Without going full CPI (which last I heard was only being issued by Principle), it is possible to build in some coverage with a fixed 2% or 3% escalator.

I priced a 2% for a 70 YO through the Fidelity website and I was pleasantly surprised.
AIG offers CPI adjustments too.
Cool!
by David Jay
Tue Jan 15, 2019 4:15 pm
Forum: Investing - Help with Personal Investments
Topic: Super Aggressive MF or ETFs?
Replies: 20
Views: 1099

Re: Super Aggressive MF or ETFs?

In general, Bogleheads are not the "super aggressive" type... :happy
by David Jay
Tue Jan 15, 2019 4:09 pm
Forum: Investing - Help with Personal Investments
Topic: Super Aggressive MF or ETFs?
Replies: 20
Views: 1099

Re: Super Aggressive MF or ETFs?

Welcome to the forum! Aside from AA (obviously 100% stocks is the most aggressive), nobody knows the future. At BH, we typically build our portfolios around broad based funds - as Jack Bogle says, instead of looking for the needle in the haystack, buy the haystack. There are a few markets that appea...
by David Jay
Tue Jan 15, 2019 3:59 pm
Forum: Investing - Help with Personal Investments
Topic: Vanguard Balanced Index Admiral vs LS Mod Growth>
Replies: 16
Views: 1055

Re: Vanguard Balanced Index Admiral vs LS Mod Growth>

I personally really like the LS funds. I have our Roth accounts in an LS fund. I have told my wife that if anything happens to me, dump everything (I have still 6 funds in my traditional IRA) into LS Moderate and let it ride.
by David Jay
Tue Jan 15, 2019 2:30 pm
Forum: Investing - Theory, News & General
Topic: An Annuity Hater Revisits SPIAs
Replies: 22
Views: 2866

Re: An Annuity Hater Revisits SPIAs

Without going full CPI (which last I heard was only being issued by Principle), it is possible to build in some coverage with a fixed 2% or 3% escalator.

I priced a 2% for a 70 YO through the Fidelity website and I was pleasantly surprised.