Search found 4053 matches

by David Jay
Sun Dec 17, 2017 10:39 pm
Forum: Investing - Help with Personal Investments
Topic: Combine rollover IRA with 401k account
Replies: 2
Views: 80

Re: Combine rollover IRA with 401k account

If you have a good 401K plan (meaning low expense, broad based index fund options), no disadvantage. Two advantages of rolling back into the 401K: 1. 401K may be accessible at age 55 (depends on specific employer plan details) without penalty 2. Frees IRA for future backdoor Roth P.s. Welcome to the...
by David Jay
Sun Dec 17, 2017 10:24 pm
Forum: Investing - Help with Personal Investments
Topic: Rolling over multiple 401k's plus IRA into new Vanguard account help
Replies: 3
Views: 252

Re: Rolling over multiple 401k's plus IRA into new Vanguard account help

Welcome to the forum! Yes, you could roll over all 4 into the same traditional IRA (often tIRA here at BH). Some argue that you should keep 401K rollover money separate from other funds in case you want to put that money back into a 401K with a future employer. In this case, you may want to hold th...
by David Jay
Sun Dec 17, 2017 4:30 pm
Forum: Investing - Help with Personal Investments
Topic: Thoughts on annuity & other retirement ideas
Replies: 8
Views: 561

Re: Thoughts on annuity & other retirement ideas

I have a company sponsored retirement plan total funded by my company & in Nov 2018 my lump sum payout will be $953,000. I can take my choice of this amount in cash for a rollover into an IRA or I can take a company sponsored annuity for $4300 a month for the remainder of my life & my spouses life....
by David Jay
Sun Dec 17, 2017 3:51 pm
Forum: Investing - Help with Personal Investments
Topic: Rolling over multiple 401k's plus IRA into new Vanguard account help
Replies: 3
Views: 252

Re: Rolling over multiple 401k's plus IRA into new Vanguard account help

Welcome to the forum! Yes, you could roll over all 4 into the same traditional IRA (often tIRA here at BH). Some argue that you should keep 401K rollover money separate from other funds in case you want to put that money back into a 401K with a future employer. In this case, you may want to hold the...
by David Jay
Sat Dec 16, 2017 9:01 pm
Forum: Investing - Help with Personal Investments
Topic: When to move into bonds
Replies: 46
Views: 3403

Re: When to move into bonds

Based on your numbers (1.4M, 450K additional contributions), you should be able to absorb a small reduction in growth and still hit your 3M goal in 9 years. The thing that will destroy your likelihood of success is to have a 40% drop in asset value 3-5 years before retirement. I was 100% stocks into...
by David Jay
Sat Dec 16, 2017 8:10 pm
Forum: Investing - Help with Personal Investments
Topic: Annuity Help
Replies: 6
Views: 643

Re: Annuity Help

To be clear then, this asset is held inside of a traditional IRA, correct?

[edit] What is your age?
by David Jay
Sat Dec 16, 2017 3:40 pm
Forum: Investing - Help with Personal Investments
Topic: Why does VTI have a fee of .04?
Replies: 10
Views: 1219

Re: Why does VTI have a fee of .04?

In the case of Vanguard, the two funds (VTSAX and VTI) are actually different classes of the same fund.
by David Jay
Sat Dec 16, 2017 3:36 pm
Forum: Investing - Theory, News & General
Topic: Is 120 months of expenses in Fixed Income plus 100/0 a viable long term allocation?
Replies: 42
Views: 1526

Re: Is 120 months of expenses in Fixed Income plus 100/0 a viable long term allocation?

I like the way the plan lines up with a lot of research about rising equity allocations in retirement. Decrease allocation as you enter retirement and the move the allocation up over the first 10 years of retirement. ERN (Early Retirement Now blog) has an excellent evaluation: https://earlyretiremen...
by David Jay
Sat Dec 16, 2017 3:22 pm
Forum: Investing - Help with Personal Investments
Topic: Why does VTI have a fee of .04?
Replies: 10
Views: 1219

Re: Why does VTI have a fee of .04?

For perspective, the fee is $40 per year for every $100,000 of VTI that you hold.
by David Jay
Fri Dec 15, 2017 2:50 pm
Forum: Investing - Theory, News & General
Topic: Am I wrong in thinking about the bull this way?
Replies: 12
Views: 2041

Re: Am I wrong in thinking about the bull this way?

You are correct in your evaluation, but there is also the behavioral side to consider. For human beings, the pain of loss is greater than the joy of gain. By a factor of perhaps three-to-one. This can easily be demonstrated by looking at a coin flip for serious money. Very few people would take doub...
by David Jay
Fri Dec 15, 2017 12:59 pm
Forum: Investing - Help with Personal Investments
Topic: Vanguard not letting me convert $5500 tira to backdoor roth?
Replies: 8
Views: 1055

Re: Vanguard not letting me convert $5500 tira to backdoor roth?

I created new tira on 12/13/17 with $5500 from my checks. As of today, $5500 deducted from checking. Vanguard Federal Money Market Fund (Settlement fund) $0.00 Total credits and debits $5,500.00 Funds available to trade $5,500.00 Funds available to withdraw $0.00 This account has unavailable shares...
by David Jay
Fri Dec 15, 2017 12:52 pm
Forum: Personal Finance (Not Investing)
Topic: Social Security 2018 Wage Base has been revised
Replies: 4
Views: 1023

Re: Social Security 2018 Wage Base has been revised

This is really odd. I already used the 2016 AWI (i.e. the "2018" number, for those who turn 62 in 2018) to calculate my wife's PIA. Now they are revising it... hmmm It makes less than a dollar difference in the calculation, but still seems strange to revisit the 2016 number based on W2 corrections f...
by David Jay
Thu Dec 14, 2017 8:18 pm
Forum: Investing - Theory, News & General
Topic: How Will Indexers Affect A Downturn---or the functioning of the market in the long-run?
Replies: 29
Views: 2603

Re: How Will Indexers Affect A Downturn---or the functioning of the market in the long-run?

Rus - If indexing becomes so popular that it interferes with price discovery to such an extent that the impact becomes exploitable , I will be among first to exploit it. Thus, the issue is self-resolving. How will you know? Genuine question. Performance chase active funds that start doing amazingly...
by David Jay
Thu Dec 14, 2017 5:43 pm
Forum: Personal Finance (Not Investing)
Topic: 55+ Early retirement offer.
Replies: 76
Views: 10667

Re: 55+ Early retirement offer.

There you go! If it's me, I am on this like flies on sugar.

You are a couple of months younger than me, I expect to work another year. The reality is starting to get to me as well.
by David Jay
Thu Dec 14, 2017 4:16 pm
Forum: Personal Finance (Not Investing)
Topic: What is a Reasonable Retirement Cost of Living?
Replies: 31
Views: 3110

Re: What is a Reasonable Retirement Cost of Living?

My quick-and-dirty calculation is current take-home , minus mortgage , plus health care . All the kids are out of college, so there are no offsets there. I think this is a comfortable number as we have nearly a thousand a month going into our checking account (above fixed expenses) that we spend as ...
by David Jay
Thu Dec 14, 2017 1:43 pm
Forum: Investing - Help with Personal Investments
Topic: Thoughts on using safe-ish investments to buy S&P 500 on margin in December?
Replies: 176
Views: 4667

Re: Thoughts on using safe-ish investments to buy S&P 500 on margin in December?

whiteprius wrote:
Thu Dec 14, 2017 1:32 pm
David Jay wrote:
Thu Dec 14, 2017 1:28 pm

You say that but I am pretty confident that you still don't get it. YOU are the amateur here. Some professional trader on Wall Street was willing to sell you those shares.
By that logic no one should ever buy shares.
Correct. No amateur should ever day trade on margin.
by David Jay
Thu Dec 14, 2017 1:41 pm
Forum: Investing - Help with Personal Investments
Topic: Tax planning: Convert Roth or zero tax due?
Replies: 18
Views: 1082

Re: Tax planning: Convert Roth or zero tax due?

I understand the allure of feelings, "no taxes" would feel good. I am also looking at paying zero taxes in retirement but that leaves a bunch of tax-deferred funds in a tIRA that will be taxable for my wife (with her reduced standard deduction of filing single after I am gone). The alternative is pa...
by David Jay
Thu Dec 14, 2017 1:32 pm
Forum: Investing - Help with Personal Investments
Topic: Tax planning: Convert Roth or zero tax due?
Replies: 18
Views: 1082

Re: Tax planning: Convert Roth or zero tax due?

Do you want to go with Math or Feelings? That, detective, is the correct question.

Math: 19% is less than 25%
by David Jay
Thu Dec 14, 2017 1:28 pm
Forum: Investing - Help with Personal Investments
Topic: Thoughts on using safe-ish investments to buy S&P 500 on margin in December?
Replies: 176
Views: 4667

Re: Thoughts on using safe-ish investments to buy S&P 500 on margin in December?

Everybody in the world expected the DJIA, S&P and NASDAQ to go up today. With all due respect, who the hell do you think sold you 6-figure amounts of SPY then? Do you think it was a charitable donation to the whiteprius fund? SPY is not penny-wide on the bid/offer because the entire world is in agr...
by David Jay
Thu Dec 14, 2017 1:13 pm
Forum: Investing - Theory, News & General
Topic: How Will Indexers Affect A Downturn---or the functioning of the market in the long-run?
Replies: 29
Views: 2603

Re: How Will Indexers Affect A Downturn---or the functioning of the market in the long-run?

garlandwhizzer wrote:
Thu Dec 14, 2017 11:42 am
This fuel has always reliably produced billions in needless fees and expenses for the financial industry...
You mean like: "Where are the Customer's Yachts?", which was published in the 1940s?
by David Jay
Thu Dec 14, 2017 1:04 pm
Forum: Investing - Help with Personal Investments
Topic: Turning 50-plz check my portfolio
Replies: 6
Views: 1031

Re: Turning 50-plz check my portfolio

Yes, spending from cash in order to max-out tax advantaged is a great idea. Doesn't that mean you are double taxed? You already paid taxes on the cash in taxable and if you put it into a tax advantaged vehicle you will pay ordinary income tax on it again. You don't actually put the cash in the tax ...
by David Jay
Thu Dec 14, 2017 12:47 pm
Forum: Investing - Help with Personal Investments
Topic: Reached 50X annual spending. Now what?
Replies: 56
Views: 5926

Re: Reached 50X annual spending. Now what?

Rick Ferri (wrote the book: "All About Asset Allocation") says that 30/70 is the "sweet spot" for retirees - low volatility with enough stocks for some growth.

At 50X, you can do anything you want. But if you don't know what to do, go with 30% equities.
by David Jay
Wed Dec 13, 2017 11:36 pm
Forum: Investing - Theory, News & General
Topic: How Will Indexers Affect A Downturn---or the functioning of the market in the long-run?
Replies: 29
Views: 2603

Re: How Will Indexers Affect A Downturn---or the functioning of the market in the long-run?

Rus -

If indexing becomes so popular that it interferes with price discovery to such an extent that the impact becomes exploitable, I will be among first to exploit it. Thus, the issue is self-resolving.
by David Jay
Wed Dec 13, 2017 9:30 pm
Forum: Investing - Help with Personal Investments
Topic: Turning 50-plz check my portfolio
Replies: 6
Views: 1031

Re: Turning 50-plz check my portfolio

Looking good! Keep it up for another 10 years and you will be in the position of having so much that you have to figure out how to give away a bunch of money. I hope you have some cherished causes to support.

Yes, spending from cash in order to max-out tax advantaged is a great idea.
by David Jay
Wed Dec 13, 2017 6:58 pm
Forum: Investing - Help with Personal Investments
Topic: Edward Jones Guided Solutions - Spouse is Employee
Replies: 37
Views: 2614

Re: Edward Jones Guided Solutions - Spouse is Employee

Based on previous threads, I don't believe that EJ will be interested in working with you on this situation. Every job is the totality of pay, situation (work schedule, commuting distance, COL...), benefits, and restrictions. Between the two of you, you need to look at the totality of your financial...
by David Jay
Wed Dec 13, 2017 6:29 pm
Forum: Personal Finance (Not Investing)
Topic: How much did you contribute to your 401k in 2017?
Replies: 117
Views: 6661

Re: How much did you contribute to your 401k in 2017?

Zero. I am putting all of my available cashflow into paying off my mortgage.

Age 61, expect to retire at age 62. Paid off mortgage will really help with expenses prior to SS
by David Jay
Wed Dec 13, 2017 3:11 pm
Forum: Investing - Help with Personal Investments
Topic: Moving from a CFP to ?
Replies: 4
Views: 368

Re: Moving from a CFP to ?

mhalley wrote:
Wed Dec 13, 2017 2:24 pm
...put it in the lifestrategy moderate growth fund that is 60/40 and not pay any advisor fees.
^^^ This. (and spend $60 for Turbotax)
by David Jay
Wed Dec 13, 2017 3:03 pm
Forum: Investing - Help with Personal Investments
Topic: Help - trying to find low cost advisers who will work with non U.S. residents
Replies: 10
Views: 539

Re: Help - trying to find low cost advisers who will work with non U.S. residents

I can't help you with with your specific issue. Most of us here at BH are do-it-yourself types. We would agree with you that third parties have "very limited value". But we would be glad to help you DIY through a low cost brokerage firm (I believe that Vanguard has Irish-domiciled funds, for instanc...
by David Jay
Wed Dec 13, 2017 2:27 pm
Forum: Investing - Theory, News & General
Topic: Buying Real Silver and Gold (Not Bitcoin)
Replies: 89
Views: 4869

Re: Buying Real Silver and Gold (Not Bitcoin)

Gold may be useful as a hedge against inflation, but over the past 215 years there are other financial instruments that have performed better: https://i.imgur.com/Lfz641C.png Source (page 6): https://www.cfasociety.org/sandiego/Linked%20Files/Presentations/WETF-Feb-2017-CFA.pdf The logarithmic scal...
by David Jay
Wed Dec 13, 2017 11:28 am
Forum: Investing - Theory, News & General
Topic: Vanguard will use blockchain to share index data
Replies: 29
Views: 2810

Re: Vanguard will use blockchain to share index data

Yea, this makes sense. One could post anything on an open FTP server. Right out there in the open, with no passwords, no communication encryption or anything.

If you have the key, you can read it. Otherwise, not.
by David Jay
Wed Dec 13, 2017 11:17 am
Forum: Personal Finance (Not Investing)
Topic: Almost fell off my chair...
Replies: 16
Views: 4358

Re: Almost fell off my chair...

Congratulations. If you hear about a market crash in the news at some point in the coming weeks/months/years - the best thing for you to do might be not to log in and look until things are on the way to recovery :) So true - in 2008 I stopped opening my quarterly 401K statements. I knew the market ...
by David Jay
Wed Dec 13, 2017 10:52 am
Forum: Investing - Theory, News & General
Topic: Automated Market Timing
Replies: 66
Views: 3396

Re: Automated Market Timing

The appropriate way to have lower risk and a smoother ride is to set your equity allocation appropriately. That is a matter of opinion, not 'gospel'. Could you elaborate please? Having 50% bonds instead of 20% bonds would lead to a portfolio with much lower volatility and drawdowns. This is fact. H...
by David Jay
Tue Dec 12, 2017 10:08 pm
Forum: Investing - Theory, News & General
Topic: Automated Market Timing
Replies: 66
Views: 3396

Re: Automated Market Timing

I'm interested in a smoother ride including the lower returns . The problem is your suggested robo tactical allocation method is in fact market timing. The appropriate way to have lower risk and a smoother ride is to set your equity allocation appropriately. Not to attempt market timing. As Bogle h...
by David Jay
Tue Dec 12, 2017 8:45 pm
Forum: Investing - Theory, News & General
Topic: Automated Market Timing
Replies: 66
Views: 3396

Re: Automated Market Timing

Veiled: One of our BH board members, Nisiprius, has a great riff on the general topic of beating the market. It impacted me so much that I use a portion of it in my signature line, I hope it gets you thinking as well. The remainder of this post is a direct quote: In order to get the "risk premium" y...
by David Jay
Tue Dec 12, 2017 6:31 pm
Forum: Investing - Help with Personal Investments
Topic: New Roth IRA contributor needing help
Replies: 5
Views: 367

Re: New Roth IRA contributor needing help

Thank you for the warm welcome guys! I took y'alls advice and put 100% in the Vanguard 2050. Also, I've seen where people split contributions between 401k and a Roth it's and was wondering what the benefit is of doing so. Is it due to only being able to put so much into the ira? As of now, it all g...
by David Jay
Tue Dec 12, 2017 3:50 pm
Forum: Personal Finance (Not Investing)
Topic: Done gone and did it [Retire]
Replies: 80
Views: 7770

Re: Done gone and did it [Retire]

Congrats! I have another year-plus before I am done...
by David Jay
Tue Dec 12, 2017 3:49 pm
Forum: Investing - Help with Personal Investments
Topic: Investment Planning Advice
Replies: 5
Views: 593

Re: Investment Planning Advice

Welcome to the forum. The first thing you need to do is establish your desired asset allocation and then select funds to get you to that target. The use of both Wellesley and Wellington suggests to me that you are not doing this because they have almost inverse asset allocations: Wellesley - 35/65 (...
by David Jay
Tue Dec 12, 2017 3:40 pm
Forum: Investing - Help with Personal Investments
Topic: Rolling over 401k to Vanguard IRA
Replies: 7
Views: 439

Re: Rolling over 401k to Vanguard IRA

I like mutual funds for rebalancing. You can move "dollars" from one fund to another, instead of purchasing in "share" amounts.

But as Nisiprius says: "It's the same beer. Mutual funds are beer in bottles, ETFs are beer in cans."
by David Jay
Mon Dec 11, 2017 11:21 pm
Forum: Investing - Theory, News & General
Topic: Roger Ibbotson and ZebraEdge Annuity
Replies: 5
Views: 729

Re: Roger Ibbotson and ZebraEdge Annuity

What are the fees? What are the caps? What is the participation rate? What is the calculation schedule? How long is the withdrawal penalty period? I will quote Jane Bryant Quinn: "Quinn's First Law of Investing is never to buy anything whose price you can't follow in the newspapers. Even when the pr...
by David Jay
Mon Dec 11, 2017 10:05 pm
Forum: Investing - Theory, News & General
Topic: Contribution to family member's IRA
Replies: 4
Views: 531

Re: Contribution to family member's IRA

Yeti wrote:
Mon Dec 11, 2017 11:35 am
This is assuming the the recipient party has sufficient income for earned income requirements and that they won't be over contributing for the year.
Remember that a spouse's income can also be used to meet the earned income requirements.
by David Jay
Mon Dec 11, 2017 9:55 pm
Forum: Investing - Help with Personal Investments
Topic: Stupid question about VTSAX
Replies: 6
Views: 1121

Re: Stupid question about VTSAX

Both sides of the replies are correct in their own way. 1. The mutual fund invests your money in actual stocks, so you hold real assets. These assets are held by a third party so in the event of a mutual fund company failure you can recover your assets. 2. They are allowed to do some "adjustments" a...
by David Jay
Mon Dec 11, 2017 9:47 pm
Forum: Personal Consumer Issues
Topic: Snow Tires? Worth it?
Replies: 147
Views: 6273

Re: Snow Tires? Worth it?

Random question for the group. I currently have 4 wheel drive Honda CRV with all season tires. However, we just moved to a cold weather location with longer winters and I have a longer commute now than before. My questions: -Does anyone recommend snow tires, even if a 4 wheel drive care? I have a w...
by David Jay
Mon Dec 11, 2017 12:16 pm
Forum: Investing - Theory, News & General
Topic: Small cap value vs. total market?
Replies: 41
Views: 3514

Re: Small cap value vs. total market?

I don't think anyone will dispute that SCV has outperformed TSM over the last couple of decades. The real question is whether, due to publicity, it will continue to outperform in the future . Many outperforming "factors" have been identified, only to fade after they are identified and publicized. TS...
by David Jay
Mon Dec 11, 2017 12:02 pm
Forum: Investing - Help with Personal Investments
Topic: How to Achieve CAGR of 6% in non-taxable Acct?
Replies: 10
Views: 1016

Re: How to Achieve CAGR of 6% in non-taxable Acct?

If this is for discretionary spending and you can choose to spend less in down years, then you can look at various withdrawal strategies: https://www.bogleheads.org/wiki/Withdrawal_methods One of these strategies is constant percentage withdrawal. You can withdraw, say, 5.5% of remaining portfolio b...
by David Jay
Mon Dec 11, 2017 11:23 am
Forum: Personal Consumer Issues
Topic: Where might be car security system "secret" button?
Replies: 17
Views: 1609

Re: Where might be car security system "secret" button?

Purchasing a 2002 Camry.

A true Boglehead. :happy
by David Jay
Sun Dec 10, 2017 8:43 pm
Forum: Investing - Help with Personal Investments
Topic: New Investor Need advice
Replies: 16
Views: 863

Re: New Investor Need advice

@David Jay Thanks for your feedback. I will look into Target funds but wanted to have more control on waht funds being selected. The target funds are fully diversified, holding US stocks, International Stocks and bonds, all inside one "wrapper" that is rebalanced to keep the allocation on the sched...
by David Jay
Sun Dec 10, 2017 7:00 pm
Forum: Investing - Help with Personal Investments
Topic: New Investor Need advice
Replies: 16
Views: 863

Re: New Investor Need advice

I want to start funding my 401k right away. Should I go for specific funds or Index funds? One of the beauties of a 401K is that you are free to move allocation around over the years with no penalty. So you don't have to "decide forever" where to put your money. I would get the process started with...
by David Jay
Sat Dec 09, 2017 6:19 pm
Forum: Investing - Theory, News & General
Topic: TSM vs High Dividend Yield if I never choose to sell?
Replies: 36
Views: 2327

Re: TSM vs High Dividend Yield if I never choose to sell?

Wouldnt my dividends be taxed at 15%? The same as LT capital gains? [edited] [Unqualified] dividends are taxed at your current marginal rate. Capital gains [and qualified dividends] receive special treatment. Additionally, you are taxed on dividends when they are distributed , whether or not you se...
by David Jay
Sat Dec 09, 2017 5:27 pm
Forum: Investing - Theory, News & General
Topic: TSM vs High Dividend Yield if I never choose to sell?
Replies: 36
Views: 2327

Re: TSM vs High Dividend Yield if I never choose to sell?

1. If this is in taxable, taking your gains as dividends is not in your best interest. Capital gains are taxed at a lower rate and are delayed until time-of-sale. 2. TSM is far more diversified so it is likely to perform more consistently across a wide range of economic conditions. TSM has provided ...
by David Jay
Sat Dec 09, 2017 9:28 am
Forum: Investing - Help with Personal Investments
Topic: I don't know how it happened! [starting new business soon, how to avoid 1% AUM cost]
Replies: 14
Views: 1228

Re: I don't know how it happened! [retiring soon, how to avoid 1% AUM cost]

livesoft wrote:
Fri Dec 08, 2017 1:54 pm
David Jay wrote:
Fri Dec 08, 2017 1:27 pm
If you are 55 (or older) when you leave your current company, you can access the 401K assets without penalty.
This 401(k) age-55 thing is very plan dependent. The OP's 401(k) may or may not allow what you wrote.
I stand corrected. It is allowed by regulation but review your specific plan.