Search found 5111 matches

by David Jay
Tue Jul 17, 2018 3:32 pm
Forum: Investing - Help with Personal Investments
Topic: When to invest 100000?
Replies: 28
Views: 1455

Re: When to invest 100000?

You should go back and read all the threads on BH by people who were sure that the market would crash after the inauguration in 2017. They were going to cash out of fear. In the end the market was up some 25% in 2017. So much for being "sure" of what Mr. Market will do.
by David Jay
Tue Jul 17, 2018 3:27 pm
Forum: Investing - Help with Personal Investments
Topic: When to invest 100000?
Replies: 28
Views: 1455

Re: When to invest 100000?

Waiting for a crash is a loser's game. You could be out of the market for 10 years if you decide to wait for, say, a 35% drop before putting your money in. In that time the market may have gone up 70%. So you waited 10 years and lost half of the gains (70% - 35%) by waiting for a crash. There are t...
by David Jay
Tue Jul 17, 2018 3:16 pm
Forum: Investing - Theory, News & General
Topic: Fund price questions
Replies: 2
Views: 173

Re: Fund price questions

Different classes of the same fund can have widely different NAV. The share price doesn't matter, it is kind of like purchasing motor oil by the quart (because your engine is a quart low) or by the 55 gallon drum (because you own a quick-lube shop). The 55 gallon drum is WAY more expensive thatn the...
by David Jay
Tue Jul 17, 2018 2:43 pm
Forum: Investing - Help with Personal Investments
Topic: Smart401K going away
Replies: 10
Views: 836

Re: Smart401K going away

pkcrafter wrote:
Tue Jul 17, 2018 10:10 am
Was there a cost to use "smart" 401k, if so, what was it?

Paul
Trying to remember, it seems like $129 a year.
by David Jay
Tue Jul 17, 2018 1:17 pm
Forum: Investing - Help with Personal Investments
Topic: Help with Retirement Investments
Replies: 4
Views: 416

Re: Help with Retirement Investments

First off, you two are totally set. You have won the game. So your questions about how to deploy your finances are almost an optional exercise. If you live comfortably on your $75,000 income then you are looking at withdrawing less than 1% of your portfolio per year in retirement. You have at least ...
by David Jay
Tue Jul 17, 2018 11:39 am
Forum: Investing - Theory, News & General
Topic: Why age is not how to determine risk tolerance
Replies: 12
Views: 1050

Re: Why age is not how to determine risk tolerance

No issue with your MATH, but your math doesn't cover behavioral issues. Which is probably more important than the math.

My sister sold all of her stocks at the bottom in 2009. The math didn't help.
by David Jay
Tue Jul 17, 2018 11:36 am
Forum: Investing - Help with Personal Investments
Topic: Rollover to a expensive 401k worth it?
Replies: 15
Views: 567

Re: Rollover to a expensive 401k worth it?

I think for us might be worth it because I already have 30k of non deductible IRA I want to move to a Roth Just to be clear: your SPOUSE has the Simple IRA but YOU have $30,000 in a non-deductable IRA? The pro-rata rules are per individual . Spousal holdings do not affect your backdoor Roth. I thou...
by David Jay
Tue Jul 17, 2018 9:17 am
Forum: Investing - Help with Personal Investments
Topic: Rollover to a expensive 401k worth it?
Replies: 15
Views: 567

Re: Rollover to a expensive 401k worth it?

How large is the balance in the Simple IRA? If it is not large and you don't want to roll over into a 1.00% ER plan, it may be worth it to convert the entire balance to Roth (and pay the taxes) - that clears out the pre-tax money for future backdoor contributions.
by David Jay
Mon Jul 16, 2018 8:40 pm
Forum: Investing - Help with Personal Investments
Topic: Check-up - suggestions welcome
Replies: 3
Views: 368

Re: Check-up - suggestions welcome

I didn’t see your post count, welcome to the forum. I didn’t articulate it, but you are good to go (without getting another job) if you can keep expenses down to $60,000 per year. That number is in “real” dollars, a 3% withdrawal is sustainable for 15 years with a shift to a less than 2% withdrawal ...
by David Jay
Mon Jul 16, 2018 8:19 pm
Forum: Investing - Help with Personal Investments
Topic: Simple question on where to fund - 401k > IRA > what next
Replies: 17
Views: 1007

Re: Simple question on where to fund - 401k > IRA > what next

I know the benefit of the investment possibilities of the HSA but if we don't use it for the medical we would have to reduce investment other places to free up the cash - But in your head post you were asking about opening a taxable account. I would never put cash in a taxable account while simulta...
by David Jay
Mon Jul 16, 2018 8:08 pm
Forum: Investing - Help with Personal Investments
Topic: Simple question on where to fund - 401k > IRA > what next
Replies: 17
Views: 1007

Re: Simple question on where to fund - 401k > IRA > what next

Extended market is a good fund. Approx. 80% SP500 and 20% Extended market gives you full market exposure.

DFA Em. Mkt. Value is a good fund IF (and only if) you deliberately seek EMV exposure. Cost is higher because the cost of finding EMV is high.
by David Jay
Mon Jul 16, 2018 4:09 pm
Forum: Personal Finance (Not Investing)
Topic: Class Reunion Fund: How to Hold and Where to Invest?
Replies: 14
Views: 727

Re: Class Reunion Fund: How to Hold and Where to Invest?

You will be generating taxable income on your wife’s SS number. I would leave it where it is.
by David Jay
Mon Jul 16, 2018 4:03 pm
Forum: Investing - Help with Personal Investments
Topic: Check-up - suggestions welcome
Replies: 3
Views: 368

Re: Check-up - suggestions welcome

It all comes down to expenses. Every calculation come back to expenses. So a more detailed look at future expenses is needed for any evaluation.

You can certainly afford a 3% withdrawal rate ($60,000 / yr) at age 53 if your expenses drop by some $28,000 with the start of SS at age 67.
by David Jay
Mon Jul 16, 2018 3:51 pm
Forum: Investing - Help with Personal Investments
Topic: My Annuity Plan..as of now.
Replies: 14
Views: 1649

Re: My Annuity Plan..as of now.

The Symetra and Sentinel are Non Qualified (funded with Cash). If i take the 10% free withdrawals the rule is last in first out. Tax will come out first. Dont really want to pay taxes on 25K. If I annuitize the Symetra i get 5 years of $55k and the taxes will only be $8400. OK, I kind of get that. ...
by David Jay
Mon Jul 16, 2018 11:49 am
Forum: Investing - Help with Personal Investments
Topic: Smart401K going away
Replies: 10
Views: 836

Re: Smart401K going away

Or just do a rollover to your IRA and manage it as part of your 4-fund portfolio.
by David Jay
Mon Jul 16, 2018 11:47 am
Forum: Investing - Help with Personal Investments
Topic: Smart401K going away
Replies: 10
Views: 836

Re: Smart401K going away

I used that for a few years before finding BH.

You could post your portfolio here, tell us your asset allocation targets, show us the choices for the 401K and ask for comments...
by David Jay
Mon Jul 16, 2018 11:41 am
Forum: Investing - Help with Personal Investments
Topic: Asset Allocation with multiple retirement accounts
Replies: 7
Views: 428

Re: Asset Allocation with multiple retirement accounts

It also depends on your asset allocation. If SP500 is your biggest holding, it may not all "fit" in one account, it may need to span two accounts.

But again, don't try to duplicate the same holdings in every account like your Example #1.
by David Jay
Mon Jul 16, 2018 11:34 am
Forum: Investing - Help with Personal Investments
Topic: Asset Allocation with multiple retirement accounts
Replies: 7
Views: 428

Re: Asset Allocation with multiple retirement accounts

Treat your entire portfolio as ONE portfolio, not as separate, duplicate accounts. More like your second illustration, based on the available funds in each account. But it depends on the size of the accounts and the available funds. I assume that your 401A, 403B and Roth are not exactly the same siz...
by David Jay
Mon Jul 16, 2018 11:30 am
Forum: Investing - Theory, News & General
Topic: Brokers sell ETF order flow used to trade against clients
Replies: 24
Views: 1552

Re: Brokers sell ETF order flow used to trade against clients

...isn't my broker required to get the best asking price? No . That's the point. What is the NBBO guarantee then? Doesn't NBBO guarantee that the broker must execute customer buy-trades at the best asking price available? Both are true. Your broker gets the best asking price, but that "best" price ...
by David Jay
Mon Jul 16, 2018 11:26 am
Forum: Investing - Help with Personal Investments
Topic: Investing in oil?
Replies: 13
Views: 866

Re: Investing in oil?

Then if oil prices go up, it hurts you at the pump but is offset by investment gains, and if oil goes lower, then your investment loses a little, but you save at the pump each week.... One of these things is not like the other . One is actual expense and the other is paper gains/losses. If you simp...
by David Jay
Mon Jul 16, 2018 11:09 am
Forum: Investing - Help with Personal Investments
Topic: My Annuity Plan..as of now.
Replies: 14
Views: 1649

Re: My Annuity Plan..as of now.

Bronco Billy wrote:
Mon Jul 16, 2018 11:00 am
I do like the monthly payments to keep my yearly tax cost down.
Please explain how you think this works.
1. In Taxable
2. In the Rollover ( I presume the 401K money is currently classified as a traditional IRA rollover).
by David Jay
Mon Jul 16, 2018 10:32 am
Forum: Investing - Theory, News & General
Topic: Brokers sell ETF order flow used to trade against clients
Replies: 24
Views: 1552

Re: Brokers sell ETF order flow used to trade against clients

Caduceus wrote:
Mon Jul 16, 2018 10:27 am
...isn't my broker required to get the best asking price?
No. That's the point.
by David Jay
Mon Jul 16, 2018 10:12 am
Forum: Investing - Help with Personal Investments
Topic: Investing in oil?
Replies: 13
Views: 866

Re: Investing in oil?

Thegame14 wrote:
Mon Jul 16, 2018 10:08 am
Is this a decent hedge or overthinking it?
Overthinking it.

[edit] There is a cost to holding a position in oil. You pay this cost continually, whether oil is up or down.
by David Jay
Mon Jul 16, 2018 10:11 am
Forum: Personal Finance (Not Investing)
Topic: Social Security Tax Hump vs. Tax Torpedo
Replies: 21
Views: 2248

Re: Social Security Tax Hump vs. Tax Torpedo

Despite the torpedo/hump, SS is taxed at a lower rate than other income, no matter how much your income. This is not true with MAGI within the region of the tax hump. Even though only 85% of SS is taxed, the tax rate is so high (46.25%) that the effect (46.25*.85 = 39.3%) is higher taxation than I ...
by David Jay
Mon Jul 16, 2018 9:59 am
Forum: Personal Finance (Not Investing)
Topic: Duration of Sequence of Return risk for long retirements
Replies: 37
Views: 1930

Re: Duration of Sequence of Return risk for long retirements

I agree with Klangfool that portfolio size as a multiple of expenses at the start is just as relevant in thinking about SRR as length of retirement. I haven't planned my retirement around SWR so much as thinking about the following retirement "stages" and having a strategy for each: 1. Date of reti...
by David Jay
Mon Jul 16, 2018 9:56 am
Forum: Personal Finance (Not Investing)
Topic: Duration of Sequence of Return risk for long retirements
Replies: 37
Views: 1930

Re: Duration of Sequence of Return risk for long retirements

I'm not sure if I'll have a "long" retirement or not, but when I retired in 2013 at age 63, the main duration of concern for SOR risk was the seven years until starting age 70 SS in 2020. So when I claim SS 20 months from now, the $3400+ per month from that will pretty much immunize me against SOR ...
by David Jay
Sun Jul 15, 2018 8:05 pm
Forum: Personal Finance (Not Investing)
Topic: Should we sell our business?
Replies: 58
Views: 4392

Re: Should we sell our business?

2016 wrote:
Fri Jul 13, 2018 6:44 pm
We want to be 100% owners, and then 0% owners.
As long as you hold the majority stake, I would consider selling a stake to your employee (I would never recommend that he purchase a minority stake, but that is his choice).
by David Jay
Sun Jul 15, 2018 7:46 pm
Forum: Investing - Help with Personal Investments
Topic: Tell me what's wrong with my strategy
Replies: 71
Views: 4539

Re: Tell me what's wrong with my strategy

greg24 wrote:
Fri Jul 13, 2018 12:42 pm
How about:

50% in a total US market index fund
30% in a total foreign index fund
20% bonds
Ding-Ding-Ding! We have a winner!
by David Jay
Sun Jul 15, 2018 7:39 pm
Forum: Personal Finance (Not Investing)
Topic: FireCalc: How big a grain of salt?
Replies: 58
Views: 4240

Re: FireCalc: How big a grain of salt?

The whole point of the Montecarlo simulations in Firecalc is use the best and worst of past time periods (and everything in between), so short of an extinction-level event (major asteroid strike, etc), if the bottom-most lines on the spaghetti graph are well above zero then you are as well covered ...
by David Jay
Sun Jul 15, 2018 7:29 pm
Forum: Investing - Help with Personal Investments
Topic: Portfolio Analysis + 125K Cash to Invest
Replies: 41
Views: 1439

Re: Portfolio Analysis + 125K Cash to Invest

Regarding asset allocation, read all of the links in the posts above, but in the end it comes down to a negotiation between your emotions and your intellect. Asset Allocation at your stage of life should be as high as you can comfortably make it, subject to two questions: 1. Can you sleep well at ni...
by David Jay
Sun Jul 15, 2018 7:12 pm
Forum: Personal Finance (Not Investing)
Topic: FireCalc: How big a grain of salt?
Replies: 58
Views: 4240

Re: FireCalc: How big a grain of salt?

The whole point of the Montecarlo simulations in Firecalc is use the best and worst of past time periods (and everything in between), so short of an extinction-level event (major asteroid strike, etc), if the bottom-most lines on the spaghetti graph are well above zero then you are as well covered a...
by David Jay
Sun Jul 15, 2018 7:00 pm
Forum: Personal Finance (Not Investing)
Topic: Duration of Sequence of Return risk for long retirements
Replies: 37
Views: 1930

Re: Duration of Sequence of Return risk for long retirements

Worse than not having a study about differing lengths of retirement, I don’t think there is even a study showing that “10 years” has any statistical basis (I am open to being corrected if someone has seen such a study). It seems to me to just be shorthand for “early in retirement there is a sequence...
by David Jay
Sun Jul 15, 2018 6:41 pm
Forum: Personal Finance (Not Investing)
Topic: Perpetual Withdrawal Rate
Replies: 9
Views: 1466

Re: Perpetual Withdrawal Rate

I understand that 2.5% is a good number for perpetual withdrawal rate. This implies a reasonable AA, and 40/60 would fall into that category.

By perpetual withdrawal rate, I mean a withdrawal rate where the capital is not consumed - one could withdraw at that rate for 50 or 75 years without worry.
by David Jay
Sun Jul 15, 2018 5:47 pm
Forum: Investing - Help with Personal Investments
Topic: My Annuity Plan..as of now.
Replies: 14
Views: 1649

Re: My Annuity Plan..as of now.

3. Jackson National Elite Choice 8 yr index annuity. It was funded with 401 (132k) money and is worth $113. I don't like this one! Its an index annuity and don't really know how it works. Typing this up it looks like its been better than the Sentinel Annuity. So maybe its beter than i think. I have...
by David Jay
Sat Jul 14, 2018 6:00 pm
Forum: Investing - Help with Personal Investments
Topic: Simple question on where to fund - 401k > IRA > what next
Replies: 17
Views: 1007

Re: Simple question on where to fund - 401k > IRA > what next

So the funding path is: 1 - 401k only to the match (we'd be about 13000 from maxing the account) 2 - max out the IRAs 3 - standard taxable brokerage account We have been almost maxing out the HSA but we also use that to fund kid medical as needed. With a perfectly good SP500 fund, why would you put...
by David Jay
Sat Jul 14, 2018 5:42 pm
Forum: Personal Finance (Not Investing)
Topic: Social Security Tax Hump vs. Tax Torpedo
Replies: 21
Views: 2248

Re: Social Security Tax Hump vs. Tax Torpedo

Instead we will have converted our IRA's to Roth's leaving enough to pay our charitable giving using Qualified Charitable Distributions (QCD's)that will be more than what our RMD's would be and as a result pay 0% on all withdrawals from the IRA's once we both reach 70.5. Agree. This is entirely pos...
by David Jay
Sat Jul 14, 2018 11:35 am
Forum: Investing - Theory, News & General
Topic: [Backdoor Roth IRA - Forbes: IRS Unlocks The 'Door' For High-Income Savers]
Replies: 7
Views: 1447

Re: [Backdoor Roth IRA - Forbes: IRS Unlocks The 'Door' For High-Income Savers]

I read the specific language from the TCJA over at Kitce’s site. I am not prepared to research it at the moment, maybe another poster will do so. Maybe when I get home this evening if no one else provides a link first.
by David Jay
Sat Jul 14, 2018 11:26 am
Forum: Investing - Help with Personal Investments
Topic: What can a beneficiary do with a Variable Annuity IRA?
Replies: 1
Views: 154

Re: What can a beneficiary do with a Variable Annuity IRA?

Yes, it is an inherited IRA. It happens to contain a VA at the moment. Steps to take: 1. Make sure the IRA is properly titled as an inherited IRA in your name at AIG (or the current custodian if there is a broker in the mix). 2. Cash out the annuity with the current custodian. This ends the annuity ...
by David Jay
Sat Jul 14, 2018 9:31 am
Forum: Investing - Theory, News & General
Topic: [Backdoor Roth IRA - Forbes: IRS Unlocks The 'Door' For High-Income Savers]
Replies: 7
Views: 1447

Re: Backdoor Roth IRA article

Yes, there is specific language about after-tax tIRA to Roth conversions in the 2017 TCJA.
by David Jay
Sat Jul 14, 2018 9:07 am
Forum: Personal Finance (Not Investing)
Topic: No load insurance and annuities.
Replies: 3
Views: 362

Re: No load insurance and annuities.

The problem are that variable and fixed-index annuities are sold , not bought . They are not a product that meets a natural need (food, shelter, transportation, etc.). Someone has to be out there “creating the need” with ads like “never lose a penny when the stock market crashes”. There has to be a ...
by David Jay
Fri Jul 13, 2018 1:14 pm
Forum: Investing - Theory, News & General
Topic: Ideas for intermediate-term savings
Replies: 4
Views: 570

Re: Ideas for intermediate-term savings

There have been many posts here about intermediate term savings needs (3-10 years) and appropriate asset allocations. What do you all think about an aggressively tailored bond portfolio rather than a simple stock-bond allocation? My current thought was: 25% MBB (Agency MBS) 25% MUB (Muni's) 25% LQD...
by David Jay
Fri Jul 13, 2018 1:07 pm
Forum: Investing - Theory, News & General
Topic: Saving 20% of paycheck isn't enough
Replies: 91
Views: 10679

Re: Saving 20% of paycheck isn't enough

As others have said regarding your chosen scenario: 20% savings rate != retire @50
by David Jay
Fri Jul 13, 2018 9:32 am
Forum: Investing - Help with Personal Investments
Topic: massive Roth conversion
Replies: 39
Views: 3085

Re: massive Roth conversion

The entire converted amount shows up as taxable income. You manage the conversion amounts year-by-year to optimize the process. Most people pick a tax bracket and convert to fill the tax bracket. I will be doing inversions to the top of the 12% tax bracket each year between retirement (62) and start...
by David Jay
Thu Jul 12, 2018 2:26 pm
Forum: Investing - Help with Personal Investments
Topic: Abundance came late, now I'm overwhelmed playing catch up
Replies: 26
Views: 4332

Re: Abundance came late, now I'm overwhelmed playing catch up

Welcome to the forum. First, you will likely have to "negotiate" an asset allocation (ratio of stocks to bonds) for peace in the family. We would strongly recommend some level of equities (stocks) to provide some growth and inflation protection. Widely regarded author (and BH member) Rick Ferri sugg...
by David Jay
Thu Jul 12, 2018 10:25 am
Forum: Investing - Help with Personal Investments
Topic: Like Lifestrategy Funds but???
Replies: 32
Views: 3238

Re: Like Lifestrategy Funds but???

If you are looking at LS Growth or LS Moderate then international bonds is a pretty small percentage of the total fund holdings. I would not worry about it.

Now if you are looking at LS Income, then one should actively evaluate whether or not they choose to hold international bonds.
by David Jay
Thu Jul 12, 2018 10:16 am
Forum: Investing - Help with Personal Investments
Topic: [Considering the Vanguard LifeStrategy Fund]
Replies: 66
Views: 4785

Re: [Considering the Vanguard LifeStrategy Fund]

Wellesley Income and Wellington are viable alternatives to comparable Life Strategy funds. As the following data indicates, Wellesley Income and Wellington have had superior performance. Accumulative Percent Performance For 10 Year Period Ending June 30, 2018 VWINX - Wellesley Income (37% stocks / ...
by David Jay
Wed Jul 11, 2018 9:36 pm
Forum: Personal Finance (Not Investing)
Topic: Northwestern Mutual (65 Life) Whole Life Insurance Question
Replies: 25
Views: 4132

Re: Northwestern Mutual (65 Life) Whole Life Insurance Question

HereForTheAdvice1111 wrote:
Wed Jul 11, 2018 11:09 am
I think I need to invest more in my government TSP (I'm only putting in 5%) right now instead. ;)
Absolutely! TSP is for investment.
by David Jay
Wed Jul 11, 2018 12:46 pm
Forum: Investing - Help with Personal Investments
Topic: Effect of Social Security when Retiring before Benefits Begin
Replies: 5
Views: 1129

Re: Effect of Social Security when Retiring before Benefits Begin

Thanks.

For simplicity, I have always used 100% of expenses from retirement to start of SS (i.e. I need to have the actual dollars for those years in my portfolio), then 4% after start of SS. I will use your work to build something more capable.
by David Jay
Wed Jul 11, 2018 12:29 pm
Forum: Investing - Help with Personal Investments
Topic: Any Dry Powder Strategies?
Replies: 103
Views: 5766

Re: Any Dry Powder Strategies?

TheTimeLord wrote:
Wed Jul 11, 2018 12:02 pm
I believe this is the 6th post in the 2019 roll call thread. I guess a lot will depend on if I can go part time and what your definition of retired is.
Yea, I saw that and I was trying to say that we are looking for a date (to actually be on the "Roll").