Search found 4984 matches

by David Jay
Mon Jun 18, 2018 1:43 pm
Forum: Investing - Help with Personal Investments
Topic: Investment Help
Replies: 5
Views: 277

Re: Investment Help

Welcome to the forum. Nice job laying out your current financial status.
by David Jay
Mon Jun 18, 2018 11:41 am
Forum: Investing - Help with Personal Investments
Topic: Northwestern Mutual Advisory Portfolios
Replies: 18
Views: 496

Re: Northwestern Mutual Advisory Portfolios

These comparisons are very sensitive to time period. It is very easy to select start-and-end dates to make any portfolio look good. figures don't lie, but liars figure. The more important question: Why are you engaging with anyone from NWMLIC (Northwestern Mutual Life Insurance Company) about invest...
by David Jay
Mon Jun 18, 2018 10:06 am
Forum: Investing - Theory, News & General
Topic: Bill Bernstein's 8:4:5:3 ratio
Replies: 15
Views: 1463

Re: Bill Bernstein's 8:4:5:3 ratio

Remember that Four Pillars is one of Bill's older works. "If You Can" suggests a simpler portfolio.

I am currently reading "Investor's Manifesto", published after the 2007-2009 downturn. It will be interesting to see what he recommends at that moment in time.
by David Jay
Mon Jun 18, 2018 8:48 am
Forum: Investing - Theory, News & General
Topic: Ex-dividend days: Is there typically anything out of the ordinary?
Replies: 3
Views: 370

Re: Ex-dividend days: Is there typically anything out of the ordinary?

A confounding issue is that some people WANT the dividend (income investors) and some people want to AVOID the dividend (capital gains investors). So it is mostly a wash, even though there can be an uptick in activity around XD on high-dividend paying stocks. I have not seen any significant studies ...
by David Jay
Mon Jun 18, 2018 8:42 am
Forum: Investing - Theory, News & General
Topic: Very confused with the current market
Replies: 73
Views: 5392

Re: Very confused with the current market

Here is a link to the Boglehead Philosophy: https://www.bogleheads.org/wiki/Bogleheads%C2%AE_investment_philosophy Coming on this forum and asking us not to suggest BH philosophy seems counter-productive. Our approach is one of humility. We don't know what the market is going to do. And we don't pre...
by David Jay
Mon Jun 18, 2018 8:29 am
Forum: Investing - Theory, News & General
Topic: Very confused with the current market
Replies: 73
Views: 5392

Re: Very confused with the current market

- I had been on cash for 10 months Why didn't you do some buying in February? The issue with market timing is that you need to be right TWICE - when to get out and when to get back in. It is harder to get back in than it is to get out. You have proved it by not buying when the market went down. You...
by David Jay
Sun Jun 17, 2018 9:36 pm
Forum: Investing - Help with Personal Investments
Topic: Best Index Fund for HSA
Replies: 4
Views: 502

Re: Best Index Fund for HSA

Low ER, Total Stock fund. What’s not to like (as you have determined that a 100% equity allocation is appropriate for your HSA).
by David Jay
Sun Jun 17, 2018 9:05 pm
Forum: Investing - Help with Personal Investments
Topic: Role of Annuity For Savers Who have 20+ years until Retirement
Replies: 33
Views: 2198

Re: Role of Annuity For Savers Who have 20+ years until Retirement

So many comments and all of them wrong. 1) The one-time commission is 4% to 5% depending on age. Since the annuity is intended to produce a lifetime income, this typically works out to an equivalent charge of 0.20%-0.35% a year - much less expensive than any investment advisor fees. 2) The annuity ...
by David Jay
Sun Jun 17, 2018 8:53 pm
Forum: Investing - Help with Personal Investments
Topic: Role of Annuity For Savers Who have 20+ years until Retirement
Replies: 33
Views: 2198

Re: Role of Annuity For Savers Who have 20+ years until Retirement

He missed a point: "I get a huge commission check"... First of all I need a like button! secondly, are american advisers obligated by law to inform about a potential commission when advising? No. In fact many insurance agency employment contracts have specific clauses requiring that the agent NOT s...
by David Jay
Sun Jun 17, 2018 7:30 pm
Forum: Investing - Theory, News & General
Topic: How much tilt is enough to make a difference?
Replies: 27
Views: 1769

Re: How much tilt is enough to make a difference?

The problem is that these sorts of analyses is that they are highly sensitive to start and end dates. If you choose a 10 year period with a major US crash your US portfolio will show lower results (DUH). If you choose a period of low interest rates, your bond portfolio will suffer. I went through a...
by David Jay
Sun Jun 17, 2018 6:25 pm
Forum: Investing - Theory, News & General
Topic: How much tilt is enough to make a difference?
Replies: 27
Views: 1769

Re: How much tilt is enough to make a difference?

How reliable is this backtest? Portfolio 1 is my slice and dice AA. 2 has no value splices. 3 is a straight US TSM and TB at 70/30. I used the 10 year period between 1999-2009 to capture the stock market crash. Based on this, the slice and dice is pretty darn good looking :greedy Not able to get pa...
by David Jay
Sun Jun 17, 2018 8:32 am
Forum: Personal Finance (Not Investing)
Topic: A relative has named me in a trust
Replies: 6
Views: 1171

Re: A relative has named me in a trust

Not really. We have a revocable trust in place of a will to simplify things for our kids (at a very emotional time). All they need to know is the lawyer’s contact information. They call the lawyer and the lawyer takes care of the asset transfer(s). Michigan is a Uniform Probate Code state, which me...
by David Jay
Sat Jun 16, 2018 8:36 pm
Forum: Personal Finance (Not Investing)
Topic: A relative has named me in a trust
Replies: 6
Views: 1171

Re: A relative has named me in a trust

Not really.

We have a revocable trust in place of a will to simplify things for our kids (at a very emotional time). All they need to know is the lawyer’s contact information. They call the lawyer and the lawyer takes care of the asset transfer(s).
by David Jay
Sat Jun 16, 2018 10:21 am
Forum: Investing - Help with Personal Investments
Topic: Should fixed income allocation necessarily change over the years?
Replies: 11
Views: 654

Re: Should fixed income allocation necessarily change over the years?

There is the hypothesis that the retirement date risk and the sequence of returns risk is better dealt with by increasing the fixed income allocation 5-10 years before retirement and maintaining the high bond allocation until 5-10 years after retirement, then increasing the stock allocation. That w...
by David Jay
Fri Jun 15, 2018 9:51 pm
Forum: Investing - Help with Personal Investments
Topic: Investment book recommendations?
Replies: 9
Views: 709

Re: Investment book recommendations?

AlohaJoe wrote:
Fri Jun 15, 2018 9:46 pm
kmwilson343 wrote:
Fri Jun 15, 2018 9:29 pm
Hey fellow Bogleheads. Trying to educate myself on investing.
The wiki is as good a place to start as any (note the "Further reading" at the bottom)
https://www.bogleheads.org/wiki/Getting_started
From the source above: “If You Can” - a free electronic download is available at the link.
by David Jay
Fri Jun 15, 2018 7:37 pm
Forum: Investing - Help with Personal Investments
Topic: Fund college tuition through 529 plan or Indexed Universal Life (IUL)
Replies: 32
Views: 1453

Re: Fund college tuition through 529 plan or Indexed Universal Life (IUL)

Is it a good argument not to fund 529 plan because it will reduce the chance to get financial aid for a family with annual income above $200,000? You are never going to get financial aid if your annual income is above $200,000. Not true. Both of my kids were offered scholarships. A scholarship is d...
by David Jay
Fri Jun 15, 2018 7:29 pm
Forum: Investing - Help with Personal Investments
Topic: Where to use dividend appreciation fund?
Replies: 2
Views: 264

Re: Where to use dividend appreciation fund?

Most here would say that the equity portion of your portfolio should be broad-based index funds, focused on total yield . Any strategy that picks out one portion of yield (either dividends or capital appreciation-yes there is a fund for that factor also) and focuses excessively on that factor will t...
by David Jay
Fri Jun 15, 2018 6:14 pm
Forum: Investing - Help with Personal Investments
Topic: Cash strategies during rising rates
Replies: 4
Views: 511

Re: Cash strategies during rising rates

Short term bond fund. Vanguard is paying 2.78, term risk is minimized by the rapid turnover (constant purchasing of new, higher yield bonds as the old bonds mature) and your 5 year timeframe.

Also, purchase once and you’re done thinking about it.
by David Jay
Fri Jun 15, 2018 4:54 pm
Forum: Investing - Help with Personal Investments
Topic: Individual stocks in a traditional IRA
Replies: 5
Views: 351

Re: Individual stocks in a traditional IRA

pspice78 wrote:
Fri Jun 15, 2018 9:08 am
What is holding me back is the fact that they have done well and paying the commission fees to sell.
Who is your IRA custodian that you are concerned about transaction costs?
by David Jay
Fri Jun 15, 2018 4:22 pm
Forum: Personal Consumer Issues
Topic: A vehicle that "sits up" but can't afford CRV
Replies: 61
Views: 4607

Re: A vehicle that "sits up" but can't afford CRV

My brother loves his Kia Sorento. Bought it new in 2013, still going strong.
by David Jay
Fri Jun 15, 2018 2:50 pm
Forum: Investing - Theory, News & General
Topic: Vanguard accounts
Replies: 11
Views: 887

Re: Vanguard accounts

I believe I said the individual cd's are FDIC issured. I worked in banking for 30 years and even had a stint with the FDIC closing down banks. I never said they were insured by Vanguard. FDIC is a government agency. The confusion may have been your statement about the $500K cap. If you purchase fro...
by David Jay
Fri Jun 15, 2018 2:46 pm
Forum: Investing - Theory, News & General
Topic: Flaw in Logic? CD ladder instead of bond funds
Replies: 61
Views: 4009

Re: Flaw in Logic? CD ladder instead of bond funds

Individual Treasuries are a good alternative right now as well. They are available in a range of maturities, so you can buy a 3 year, 5 year, 7 year, etc.
by David Jay
Fri Jun 15, 2018 12:39 pm
Forum: Investing - Theory, News & General
Topic: Vanguard accounts
Replies: 11
Views: 887

Re: Vanguard accounts

My plan is to purchase several CD's to keep them under the $500K FDIC cap. I assume that since this is a joint account each account holder is insured for $250K per CD. There is no FDIC insurance on any brokerage account, so it doesn't matter whether the account is joint. The CD's held in a brokerag...
by David Jay
Fri Jun 15, 2018 11:32 am
Forum: Investing - Theory, News & General
Topic: Vanguard accounts
Replies: 11
Views: 887

Re: Vanguard accounts

jtl46 wrote:
Fri Jun 15, 2018 10:33 am
My plan is to purchase several CD's to keep them under the $500K FDIC cap. I assume that since this is a joint account each account holder is insured for $250K per CD.
There is no FDIC insurance on any brokerage account, so it doesn't matter whether the account is joint.
by David Jay
Thu Jun 14, 2018 6:30 pm
Forum: Investing - Help with Personal Investments
Topic: Vanguard Managed Payout Fund
Replies: 29
Views: 2361

Re: Vanguard Managed Payout Fund

What are your financial goals that lead you in this direction? Are you comfortable that they will pay out principle if needed to maintain the income stream?
by David Jay
Thu Jun 14, 2018 6:25 pm
Forum: Investing - Help with Personal Investments
Topic: Vanguard or Charles Schwab account
Replies: 17
Views: 1346

Re: Vanguard or Charles Schwab account

Both are excellent, low cost brokers.

I am at Vanguard, but I used to have accounts at both brokers. I combined at Vanguard for simplicity, and I favor Vanguard because of the company structure.
by David Jay
Thu Jun 14, 2018 5:51 pm
Forum: Investing - Help with Personal Investments
Topic: Role of Annuity For Savers Who have 20+ years until Retirement
Replies: 33
Views: 2198

Re: Role of Annuity For Savers Who have 20+ years until Retirement

And while we are piling on, there is this post: https://www.bogleheads.org/forum/viewtopic.php?f=1&p=3586103#p3586103 This guy's mother put $200,000 into an SP500 index annuity and 5 years later (during which time the S&P total return was 80%) the cash value was $205,000 . I'm surprised she got tha...
by David Jay
Thu Jun 14, 2018 3:46 pm
Forum: Investing - Theory, News & General
Topic: QQQ versus TRBCX for 2018 [Invesco QQQ vs. T. Rowe Price Blue Chip Growth]
Replies: 1
Views: 140

Re: QQQ versus TRBCX for 2018 [Invesco QQQ vs. T. Rowe Price Blue Chip Growth]

Welcome to the forum. Here is an introduction to Boglehead Philosophy: https://www.bogleheads.org/wiki/Bogleheads%C2%AE_investment_philosophy We are generally buy-and-hold, broad based index types here. Very few of us would select a fund based on how we expect it to perform for the next 6 months. Mo...
by David Jay
Thu Jun 14, 2018 12:08 pm
Forum: Investing - Help with Personal Investments
Topic: Role of Annuity For Savers Who have 20+ years until Retirement
Replies: 33
Views: 2198

Re: Role of Annuity For Savers Who have 20+ years until Retirement

And while we are piling on, there is this post: https://www.bogleheads.org/forum/viewtopic.php?f=1&p=3586103#p3586103 This guy's mother put $200,000 into an SP500 index annuity and 5 years later (during which time the S&P total return was 80%) the cash value was $205,000 . [edit] To provide perspect...
by David Jay
Thu Jun 14, 2018 11:39 am
Forum: Investing - Help with Personal Investments
Topic: Role of Annuity For Savers Who have 20+ years until Retirement
Replies: 33
Views: 2198

Re: Role of Annuity For Savers Who have 20+ years until Retirement

Patrick: If you ever intend to talk to this insurance salesperson again (I recommend against it), here is the only question I would ask. Stick with the exact words I use. If he changes the phrasing, go back to this phrasing. Do not let them sneak around the question. Stick with it: If I give you my ...
by David Jay
Thu Jun 14, 2018 9:54 am
Forum: Investing - Help with Personal Investments
Topic: Role of Annuity For Savers Who have 20+ years until Retirement
Replies: 33
Views: 2198

Re: Role of Annuity For Savers Who have 20+ years until Retirement

Here's what FINRA has to say about it... http://www.finra.org/investors/alerts/equity-indexed-annuities_a-complex-choice Note: They don't call them Equity Indexed annuities anymore. They call them Fixed Index annuities now because too many people were learning about the bad points of EIAs. But it's...
by David Jay
Wed Jun 13, 2018 10:32 pm
Forum: Investing - Help with Personal Investments
Topic: Role of Annuity For Savers Who have 20+ years until Retirement
Replies: 33
Views: 2198

Re: Role of Annuity For Savers Who have 20+ years until Retirement

3) the return of annuity is guaranteed (10% simple interest rate for the first ten years, and a 5% simple interest rate for years 11 through 20.). The “guaranteed rate” that is quoted is seldom (never?) an actual interest rate that you can actually withdraw at the end of the contract (see bsteiner'...
by David Jay
Wed Jun 13, 2018 6:56 pm
Forum: Investing - Help with Personal Investments
Topic: 401k & account with 1 Robo-advisor: Wash sale chance?
Replies: 22
Views: 986

Re: 401k & account with 1 Robo-advisor: Wash sale chance?

"[...] even if i opt-out of target-date retirement fund and opt-in to a 3/4 fund portfolio with a set percentage AA and change it over time, the trustee will take care of rebalancing the account per the AA weight i have indicated [...]" I have no idea what you are trying to say... @sorry for not be...
by David Jay
Wed Jun 13, 2018 4:30 pm
Forum: Investing - Help with Personal Investments
Topic: 401k & account with 1 Robo-advisor: Wash sale chance?
Replies: 22
Views: 986

Re: 401k & account with 1 Robo-advisor: Wash sale chance?

sman09 wrote:
Wed Jun 13, 2018 3:48 pm
"[...] even if i opt-out of target-date retirement fund and opt-in to a 3/4 fund portfolio with a set percentage AA and change it over time, the trustee will take care of rebalancing the account per the AA weight i have indicated [...]"
I have no idea what you are trying to say...
by David Jay
Wed Jun 13, 2018 3:43 pm
Forum: Investing - Help with Personal Investments
Topic: 401k & account with 1 Robo-advisor: Wash sale chance?
Replies: 22
Views: 986

Re: 401k & account with 1 Robo-advisor: Wash sale chance?

The point is that you personally don't actually "hold" the specific assets inside the 401K. You can't transfer "in kind" out of the 401K, you receive cash at the time of disbursement.

You do own the assets that are in your Betterment account.
by David Jay
Wed Jun 13, 2018 2:32 pm
Forum: Investing - Help with Personal Investments
Topic: 401k & account with 1 Robo-advisor: Wash sale chance?
Replies: 22
Views: 986

Re: 401k & account with 1 Robo-advisor: Wash sale chance?

In searching around the web, the consensus seems to be that an employer-sponsored 401K ( not a Solo-401K, where it is more ambiguous) has a trustee who is performing all the trades. You do not actually "hold" the assets you have selected within your 401K account (although you own the rights to those...
by David Jay
Wed Jun 13, 2018 11:35 am
Forum: Investing - Help with Personal Investments
Topic: Convert Taxable account to Roth IRA to avoid wash sale?
Replies: 14
Views: 564

Re: Convert Taxable account to Roth IRA to avoid wash sale?

sman09 wrote:
Wed Jun 13, 2018 10:50 am
My understanding was just like a 401k contribution it has to go directly from the paycheck.
This is most emphatically NOT the case. The "I" in "IRA" stands for "Individual". An IRA is not sponsored by an employer, it is yours.
by David Jay
Wed Jun 13, 2018 11:05 am
Forum: Investing - Help with Personal Investments
Topic: Help me with my FIL and an Insurance investment for my child
Replies: 11
Views: 795

Re: Help me with my FIL and an Insurance investment for my child

There are a lot of articles on the internet about why whole life is not a good "investment" for children but here's one from a valued contributor to Bogleheads: https://www.whitecoatinvestor.com/6-reasons-not-to-buy-life-insurance-for-your-children/ Whole life insurance is generally not recommended...
by David Jay
Wed Jun 13, 2018 11:01 am
Forum: Investing - Help with Personal Investments
Topic: Help me with my FIL and an Insurance investment for my child
Replies: 11
Views: 795

Re: Help me with my FIL and an Insurance investment for my child

Typically, this is not "paid up" insurance, which means at some point in the future someone other than your FIL will have to assume the payments. I am very opposed to this arrangement because he is imposing a burden (either a payment or dishonoring a grandparent's gift) on your children. My parents ...
by David Jay
Wed Jun 13, 2018 10:45 am
Forum: Investing - Help with Personal Investments
Topic: Convert Taxable account to Roth IRA to avoid wash sale?
Replies: 14
Views: 564

Re: Convert Taxable account to Roth IRA to avoid wash sale?

Is it a good idea for me to request the firms to convert my current taxable account in to a Roth IRA? Because the money invested in the taxable account is already post-tax, i thought it might fit the Roth requirement. There is a maximum contribution level of $5500 per year ($6500 after age 50) into...
by David Jay
Wed Jun 13, 2018 10:36 am
Forum: Investing - Help with Personal Investments
Topic: Interesting Social Security analysis
Replies: 16
Views: 2264

Re: Interesting Social Security analysis

For single men, the numbers are pretty similar. It comes down to a philosophical question: "more money now" versus "longevity insurance". No right or wrong. For women, delaying has slightly better numbers. For married couples, having the higher earner delay almost always generates a better result. U...
by David Jay
Wed Jun 13, 2018 10:00 am
Forum: Investing - Theory, News & General
Topic: Buy LEAPS vs stocks
Replies: 7
Views: 759

Re: Buy LEAPS vs stocks

curious to hear your opinion if buying long term options is worthwhile option in stocks you would want to hold for a year or two It is hard to say if it is worthwhile without knowing your goals. Are you trying to hedge? It is unlikely that you will consistently outperform stock holdings with option...
by David Jay
Wed Jun 13, 2018 9:02 am
Forum: Investing - Help with Personal Investments
Topic: Please advise re:Guggenheim intermediate bond fund class p SIUPX
Replies: 17
Views: 546

Re: Please advise re:Guggenheim intermediate bond fund class p SIUPX

Welcome to the forum! I don’t know Fidelity funds well enough to recommend a replacement, but I don’t think anyone around BH would recommend an intermediate term bond fund with a 1.03% expense ratio. The 12b-1 fee is paid by the mutual fund company to the broker, so the advisor had a significant co...
by David Jay
Wed Jun 13, 2018 8:13 am
Forum: Investing - Theory, News & General
Topic: Can dividends be "lost" during transition period of a rollover IRA?
Replies: 4
Views: 338

Re: Can dividends be "lost" during transition period of a rollover IRA?

The quick answer is "no".

The long answer: If a dividend is declared before moving the assets, but after the dividend is actually paid, those funds end up at brokerage #1 and get transferred later. It took several weeks before the last penny of my Roth made it from Broker #1 to Broker #2.
by David Jay
Wed Jun 13, 2018 7:44 am
Forum: Personal Consumer Issues
Topic: Should I take possession of a certified mail?
Replies: 145
Views: 14225

Re: Should I take possession of a certified mail?

NotWhoYouThink wrote:
Wed Jun 13, 2018 7:38 am
Now that you have started this you have to let us know what it says.
Inquiring minds...
by David Jay
Wed Jun 13, 2018 7:43 am
Forum: Investing - Theory, News & General
Topic: 1 Year Rule - Not allowed to execute new investment strategy until 1 year has passed
Replies: 27
Views: 2386

Re: 1 Year Rule - Not allowed to execute new investment strategy until 1 year has passed

My IPS says that my maximum allocation change in a year is 5%. So I can "adjust" a bit if needed but not go "all cash" or "all stocks".
by David Jay
Tue Jun 12, 2018 10:16 pm
Forum: Investing - Theory, News & General
Topic: Do Small Caps Outperform?
Replies: 61
Views: 3812

Re: Do Small Caps Outperform?

But even the small-cap premium itself has been challenged. I admit to leaning on authority, and we could certainly find authorities on the other side... but the existence of a small-cap premium has been challenged by some authorities. There are people who think the earth is flat, too, but I prefer ...
by David Jay
Tue Jun 12, 2018 8:51 pm
Forum: Investing - Help with Personal Investments
Topic: Please advise re:Guggenheim intermediate bond fund class p SIUPX
Replies: 17
Views: 546

Re: Please advise re:Guggenheim intermediate bond fund class p SIUPX

Welcome to the forum! I don’t know Fidelity funds well enough to recommend a replacement, but I don’t think anyone around BH would recommend an intermediate term bond fund with a 1.03% expense ratio. The 12b-1 fee is paid by the mutual fund company to the broker, so the advisor had a significant con...