Search found 10365 matches

by David Jay
Mon Apr 12, 2021 9:41 pm
Forum: Personal Finance (Not Investing)
Topic: Roth IRA Distributions - are they income tax-free if ... ?
Replies: 5
Views: 344

Re: Roth IRA Distributions - are they income tax-free if ... ?

GerryL wrote: Mon Apr 12, 2021 8:53 pm
My aunt has a Roth IRA she started outside of her employer back in 2000
This seems to be a non sequitur. All IRAs, traditional and Roth, as started outside of an employer. Or is there an instance I'm not familiar with?
SIMPLE-IRA is employer sponsored.
by David Jay
Mon Apr 12, 2021 8:43 pm
Forum: Personal Investments
Topic: Required minimum distributions: All to QCDs vs. ROTH conversions
Replies: 6
Views: 503

Re: Required minimum distributions: All to QCDs vs. ROTH conversions

Thanks for the great thoughts. It definitely makes sense to keep track of the potential size of the RMDs to keep them below the QCD limit of 100,000. Converting a bit to a ROTH also makes sense if it can be done to the top of a reasonable tax bracket. Remember, tax rates are scheduled to go up in 2...
by David Jay
Mon Apr 12, 2021 7:42 pm
Forum: Personal Finance (Not Investing)
Topic: HSA advice Jane Quinn How to Make Your Money Last
Replies: 42
Views: 3627

Re: HSA advice Jane Quinn How to Make Your Money Last

Don't we have to be employed with a high deductible health plan to contribute to an HSA? Nope . Can a retired person (not employed) with a high deductible health plan (if there are such things) contribute to an HSA? Yes. My ACA plan qualifies - in fact they offered an HSA provider (I have a Fidelit...
by David Jay
Mon Apr 12, 2021 2:18 pm
Forum: Personal Investments
Topic: Investing strategy with known future expense
Replies: 20
Views: 844

Re: Investing strategy with known future expense

Long Term Treasuries are really not appropriate for a requirement in the 5-10 year range. If there is a significant bump up in interest rates it will take 20+ years for LTT to recover.
by David Jay
Mon Apr 12, 2021 12:04 pm
Forum: Personal Investments
Topic: Can you Invest to much?
Replies: 12
Views: 1239

Re: Can you Invest to much?

I would lean towards fully funding all of the tax-advantaged accounts every year and paying down the mortgage with funds that would otherwise be saved in taxable that year. At 1.99%? I think I would keep it in taxable and invest. Some people look at a mortgage in ROI terms, others see being debt fr...
by David Jay
Mon Apr 12, 2021 11:38 am
Forum: Personal Investments
Topic: Can you Invest to much?
Replies: 12
Views: 1239

Re: Can you Invest to much?

I would lean towards fully funding all of the tax-advantaged accounts every year and paying down the mortgage with funds that would otherwise be saved in taxable that year.
by David Jay
Mon Apr 12, 2021 11:35 am
Forum: Investing - Theory, News & General
Topic: How to Compare Active Managed fund to Passive
Replies: 15
Views: 785

Re: How to Compare Active Managed fund to Passive

Contra would have to outperform on average by a good margin to make up for its expanse vs total stock with it's lower fees. And that is exactly the case - Contrafund is underperforming the SP500. Given the choice, I would select a Total Market fund rather than an SP500, such as Fidelity’s FSKAX or ...
by David Jay
Mon Apr 12, 2021 10:49 am
Forum: Investing - Theory, News & General
Topic: How to Compare Active Managed fund to Passive
Replies: 15
Views: 785

Re: How to Compare Active Managed fund to Passive

1. In a search engine (Google, Bing, etc) type in: morningstar fcntx 2. Select the link to: Morningstar Fidelity Contrafund (it is the third or fourth one on my search) 3. Select the "Performance" tab 4. Click on "Show Interactive Chart" button in the upper left corner of the cha...
by David Jay
Mon Apr 12, 2021 7:10 am
Forum: Personal Finance (Not Investing)
Topic: After Action Review Funding My Revocable Living Trust
Replies: 1
Views: 301

Re: After Action Review Funding My Revocable Living Trust

It sounds like you are doing a good job. Our trust attorney says that the most common error with trusts is failure to fund them properly. The firm has a group of para-legals who follow up to confirm that the funding has been done.
by David Jay
Sun Apr 11, 2021 9:21 pm
Forum: Personal Investments
Topic: Buying a 1.5M house in Austin. Should I pull it?
Replies: 51
Views: 4907

Re: Buying a 1.5M house in Austin. Should I pull it?

How confident are you that there is a rental market for 1.5 million dollar homes in Austin? Do you want to be an absentee landlord?

There is really no comparison between VOO and being a landlord. VOO is a passive investment, an out-of-state rental property is a part-time job.
by David Jay
Sun Apr 11, 2021 9:16 pm
Forum: Personal Investments
Topic: Required minimum distributions: All to QCDs vs. ROTH conversions
Replies: 6
Views: 503

Re: Required minimum distributions: All to QCDs vs. ROTH conversions

We will be starting RMDs in about 8 years. Our current plan is to do QCDs ( qualified charitable donations) with our entire RMD. If we are planning to do just QCDs is there any reason to do any ROTH conversions? QCD is a great use of tIRA assets, but If your taxable income is less than about $18,00...
by David Jay
Sun Apr 11, 2021 1:50 pm
Forum: Investing - Theory, News & General
Topic: Another 2.8% SWR Article Quoting Wade Pfau
Replies: 159
Views: 8337

Re: Another 2.8% SWR Article Quoting Wade Pfau

HomerJ wrote: Sun Apr 11, 2021 1:34 pmWe can check Pfau from 10 years ago... He was comically wrong.
You mean like here? viewtopic.php?t=174030

His 2% SWR included 1% AUM and .67 ER. Effective SWR for DYI Boglehead would have been 3.6% without challenging any of Pfau's assumptions.
by David Jay
Sun Apr 11, 2021 1:14 pm
Forum: Investing - Theory, News & General
Topic: VPW too aggressive?
Replies: 23
Views: 2022

Re: VPW too aggressive?

Note that 4% is constant in inflation adjusted value. There are costs to achieving this (sequence of returns, etc.) and inflation is built into the 4% number, which is why the VPW percentages are much higher. One could take 6% of remaining portfolio every year with a very high likelihood of good res...
by David Jay
Sun Apr 11, 2021 8:08 am
Forum: Personal Investments
Topic: Creating revocable trust just for buying I Bonds?
Replies: 29
Views: 1901

Re: Creating revocable trust just for buying I Bonds?

Welcome to the forum! I see your thread has over 120 views, so I know folks are looking at it. It appears there is little experience here on BH that provides insight into your question. I cannot answer your question with certainty, but we have a revocable living trust set up to simplify our children...
by David Jay
Sun Apr 11, 2021 7:47 am
Forum: Personal Finance (Not Investing)
Topic: Ed Slott's new book NEW RETIREMENT SAVINGS TIME BOMB
Replies: 153
Views: 10501

Re: Ed Slott's new book NEW RETIREMENT SAVINGS TIME BOMB

AquaBliss wrote: Sat Apr 10, 2021 11:29 am
David Jay wrote: Sat Apr 10, 2021 10:19 am Succinct is good :happy
Can you please elaborate? #irony
“No”
by David Jay
Sat Apr 10, 2021 7:02 pm
Forum: Personal Investments
Topic: US Equity Allocation Strategy
Replies: 4
Views: 403

Re: US Equity Allocation Strategy

Welcome to the forum! VTI (Vanguard Total US Stock) is the default, low regret choice for your US Equity Allocation. It holds the entire US market at market weight so it is fully diversified. Adding any of your other choices to VTI is a tilt away from the market. A tilt away from the market essentia...
by David Jay
Sat Apr 10, 2021 6:33 pm
Forum: Personal Finance (Not Investing)
Topic: Age 63 retired, planning how to use Roth conversions
Replies: 27
Views: 3196

Re: Age 63 retired, planning how to use Roth conversions

I am not surprised, it is a balancing act. Too much Roth conversion, pay excess conversion / IRMAA taxes. Too little Roth, pay excess RMD taxes.

Sounds like #2 is (a-la "Goldilocks") just right.
by David Jay
Sat Apr 10, 2021 3:40 pm
Forum: Personal Investments
Topic: Roth IRA 5 year rule (over 59.5) question.
Replies: 8
Views: 684

Re: Roth IRA 5 year rule (over 59.5) question.

jwc1754 wrote: Sat Apr 10, 2021 3:37 pm Does it reset a clock if you transferred a Roth account from TD to Vanguard (opened a new Roth account in VG)?
No. The primary 5 year clock is since you first funded your first Roth IRA. Even if you later closed the account.
by David Jay
Sat Apr 10, 2021 11:45 am
Forum: Personal Investments
Topic: Windfall going to invest @ AA but?
Replies: 2
Views: 408

Re: Windfall going to invest @ AA but?

I agree with “retired”, you should view all your accounts, combined as one portfolio and position assets in an optimal manner, rather than holding the 3-fund in every account.
by David Jay
Sat Apr 10, 2021 10:28 am
Forum: Personal Finance (Not Investing)
Topic: Withdrawal Frequency in Retirement
Replies: 22
Views: 1718

Re: Withdrawal Frequency in Retirement

Virtually all of our portfolio is in tax-advantaged accounts. In order to meet specific qualifications (ACA, MI Homestead, etc.) we carefully move money from tax advantaged to a taxable account that I call our "distribution" account (at the brokerage) a couple of times a year. We then have...
by David Jay
Sat Apr 10, 2021 10:18 am
Forum: Personal Finance (Not Investing)
Topic: Refund adjusted by IRS
Replies: 7
Views: 685

Re: Refund adjusted by IRS

I vote for "typo" by the OP (projecting from my own experience).

Plus, neither the IRS or TurboTax are new at this...
by David Jay
Sat Apr 10, 2021 9:17 am
Forum: Personal Finance (Not Investing)
Topic: Inheritance - help me get my head straight
Replies: 11
Views: 1542

Re: Inheritance - help me get my head straight

bungalow10 wrote: Sat Apr 10, 2021 6:18 amAm I missing something? I feel like there used to be an option to do RMDs based on life expectancy.
This feature (sometimes called the “stretch” IRA) was eliminated for the heirs of individuals passing after January 1, 2020. Sorry.
by David Jay
Sat Apr 10, 2021 8:55 am
Forum: Investing - Theory, News & General
Topic: Buying a range of bond maturities?
Replies: 11
Views: 808

Re: Buying a range of bond maturities?

In normal times, when future interest rates are unknown, holding a range of bond durations probably make sense. There is a widely-described “barbell” strategy of holding short term bonds and long term bonds to cover a wide range of outcomes. In these near-zero interest times, I cannot bring myself t...
by David Jay
Fri Apr 09, 2021 11:00 pm
Forum: Personal Finance (Not Investing)
Topic: Social Security decsion
Replies: 7
Views: 894

Re: Social Security decsion

The spouse with the higher earnings record should, under almost any circumstance, defer to age 70 because their benefit becomes the survivor’s benefit.

If the couple are well situated financially, it makes little difference what the lower earning spouse chooses.
by David Jay
Fri Apr 09, 2021 7:19 pm
Forum: Personal Finance (Not Investing)
Topic: [Backdoor] Roth Conversion Confusion
Replies: 7
Views: 454

Re: [Backdoor] Roth Conversion Confusion

Welcome to the forum!

Your tax guy is mistaken. We have lots of folks here who do the backdoor Roth process every year.

Here is the Wiki on the backdoor Roth process, he may benefit from this page: https://www.bogleheads.org/wiki/Backdoor_Roth
by David Jay
Fri Apr 09, 2021 7:13 pm
Forum: Personal Consumer Issues
Topic: Travel Trailer vs My Pickup Truck: Specs?
Replies: 53
Views: 3039

Re: Travel Trailer vs My Pickup Truck: Specs?

This is why we need the OP to explain his use. If he wants to pull the trailer 50 miles to the lake every spring and pull it 50 miles home in the fall, his truck will be fine. If he wants to pull the trailer out west and explore the Rockies, his truck won't cut it. There is a wide range of activitie...
by David Jay
Fri Apr 09, 2021 3:37 pm
Forum: Investing - Theory, News & General
Topic: Beat the market by only holding after hours
Replies: 56
Views: 3324

Re: Beat the market by only holding after hours

I read the article as saying that buy-and-hold outperforms day-trading( i.e. closing all positions each day).
by David Jay
Fri Apr 09, 2021 3:22 pm
Forum: Personal Investments
Topic: Life Savings in Cash--Need Advice
Replies: 27
Views: 4220

Re: Life Savings in Cash--Need Advice

Welcome to the forum! First off, you need to establish your level of comfort. Since you don't need the money for living expenses, you can afford to be conservative. The primary "control knob" for growth versus stability is the percentage of stocks versus bonds (+ other fixed income), calle...
by David Jay
Fri Apr 09, 2021 2:40 pm
Forum: Personal Finance (Not Investing)
Topic: H&R Block not allowing stock sale on 1099-B
Replies: 11
Views: 720

Re: H&R Block not allowing stock sale on 1099-B

1099-B is not the normal document for a stock sale through a brokerage house. Can you explain more about the 1099-B? Was this stock in a closely held company, perhaps not a public stock? Who issued the 1099-B? Guess I haven't sold any stocks in a taxable account for a while. I'm just used to gettin...
by David Jay
Fri Apr 09, 2021 2:32 pm
Forum: Personal Consumer Issues
Topic: Travel Trailer vs My Pickup Truck: Specs?
Replies: 53
Views: 3039

Re: Travel Trailer vs My Pickup Truck: Specs?

Sure you can pull it. It won't be great in the mountains, where are you planning on driving? I wouldn't recommend putting 3000 pounds in the trailer, but I don't even think you can in a trailer of that size. We always figured we had 1000 pounds of "stuff", that would put you at about 5500 ...
by David Jay
Fri Apr 09, 2021 12:30 pm
Forum: Personal Investments
Topic: Etrade cover transfer fee?
Replies: 6
Views: 526

Re: Etrade cover transfer fee?

This website says that Schwab does not have an account closing fee: https://www.brokerage-review.com/expert/cancel-account/how-to-close-charles-schwab-account.aspx The best route is to talk to an IRA transfer specialist at eTrade. They will know the ins and outs. More generally, always work with the...
by David Jay
Thu Apr 08, 2021 9:58 pm
Forum: Investing - Theory, News & General
Topic: TSLA gamed the system - Could Index Funds Be ‘Worse Than Marxism’?
Replies: 107
Views: 11152

Re: TSLA gamed the system - Could Index Funds Be ‘Worse Than Marxism’?

Also, the index funds won't just automatically buy in the given scenario you've presented. Index funds hold stock in proportion to market cap, not the number of shares outstanding. If the number of shares outstanding increase with a concomitant decrease in price that leads to an equal market cap be...
by David Jay
Thu Apr 08, 2021 8:05 pm
Forum: Investing - Theory, News & General
Topic: Why do Vanguard Target Date funds have such high tracking error?
Replies: 15
Views: 2027

Re: Why do Vanguard Target Date funds have such high tracking error?

For the first 15 years or so, the AA of the target fund will not change. My point stands, I am referring to rebalancing, not changes in AA.
by David Jay
Thu Apr 08, 2021 7:45 pm
Forum: Personal Investments
Topic: IRA, Roth Taxable
Replies: 7
Views: 521

Re: IRA, Roth Taxable

There is a wiki on tax efficient fund placement across various types of accounts here: https://www.bogleheads.org/wiki/Tax-eff ... _placement
by David Jay
Thu Apr 08, 2021 7:32 pm
Forum: Personal Investments
Topic: What is a good asset allocation for us?
Replies: 17
Views: 1511

Re: What is a good asset allocation for us?

retiredjg wrote: Thu Apr 08, 2021 4:20 pm
David Jay wrote: Thu Apr 08, 2021 4:06 pm This makes AA intensely personal. It is a negotiation between the head and the gut.
Such lovely wording and so true!
I stole “negotiation between the head and the gut” from someone here on BH, but it really set well with me.
by David Jay
Thu Apr 08, 2021 6:52 pm
Forum: Personal Investments
Topic: Etrade cover transfer fee?
Replies: 6
Views: 526

Re: Etrade cover transfer fee?

According to this link, Schwab does not have an account closing fee: https://www.schwab.com/pricing
by David Jay
Thu Apr 08, 2021 6:31 pm
Forum: Investing - Theory, News & General
Topic: Why 1971 has become the starting point for increasing income inequality?
Replies: 24
Views: 1582

Re: Why 1971 has become the starting point for increasing income inequality?

Supply and demand for labor. FWIW, increased "inequality" can be beneficial if the overall standard is rising. "Equality" is easy when everybody has nothing. In before the lock. How is that beneficial for everyone, from the fairness perspective? After all, the "overall stan...
by David Jay
Thu Apr 08, 2021 4:06 pm
Forum: Personal Investments
Topic: What is a good asset allocation for us?
Replies: 17
Views: 1511

Re: What is a good asset allocation for us?

Here at BH we teach that asset allocation (AA) is the primary "control knob" for growth versus stability. More stocks, more growth but also more volatility. This makes AA intensely personal. It is a negotiation between the head and the gut. The head says: "More growth is logical"...
by David Jay
Thu Apr 08, 2021 3:57 pm
Forum: Investing - Theory, News & General
Topic: Five Factor Investing with ETFs
Replies: 59
Views: 4636

Re: Five Factor Investing with ETFs

Five-factor investing was “the latest thing” starting about 10 years ago. A number of 5-factor funds and ETFs opened between 2014 and 2018. Performance has been disappointing. Last week a question prompted me to go look at the performance. I looked at 3, including the Vanguard fund and the largest ...
by David Jay
Thu Apr 08, 2021 9:14 am
Forum: Personal Investments
Topic: Family with 4 little humans: chances of retiring/financial independence
Replies: 70
Views: 7041

Re: Family with 4 little humans: chances of retiring/financial independence

There are some pieces to the puzzle missing. It looks like your income is about $97K and year and your Retirement savings are about $26K a year. I would guess that your mortgage payment is about $1,200 a month or a bit less than $15K a year. FICA taxes are around $7K a year too. Those and a lot of ...
by David Jay
Thu Apr 08, 2021 9:02 am
Forum: Personal Investments
Topic: Down Payment / We May Never Buy - About to Surrender "Toxic" VUL
Replies: 4
Views: 632

Re: Down Payment / We May Never Buy - About to Surrender "Toxic" VUL

If I was ever going to use a VUL (which I am not), I would probably start with TIAA. They will be among the lowest cost options. I would never hold SP500 inside a VUL. What is your marginal tax rate? 22%? 24%? You are just flushing money down the drain. If you keep it, I would hold 100% fixed accoun...
by David Jay
Thu Apr 08, 2021 8:55 am
Forum: Personal Investments
Topic: Vanguard: Moving funds between mutual / brokerage accounts
Replies: 2
Views: 477

Re: Vanguard: Moving funds between mutual / brokerage accounts

Yes, there is one extra day to move from the mutual fund account. If you were to convert the mutual fund account (so all accounts are brokerage accounts), then you could do an "exchange" between funds - even in different accounts - so the assets do not need the extra step of going through ...
by David Jay
Thu Apr 08, 2021 8:21 am
Forum: Investing - Theory, News & General
Topic: Why do Vanguard Target Date funds have such high tracking error?
Replies: 15
Views: 2027

Re: Why do Vanguard Target Date funds have such high tracking error?

I read the footnote on the Vanguard 2060 page [from the link above], it is not one benchmark, it consists of the (arithmetically combined) benchmarks for each of the underlying funds. By definition, a fund that holds the underlying funds in a constant ratio cannot match the composite benchmark becau...
by David Jay
Wed Apr 07, 2021 10:00 pm
Forum: Investing - Theory, News & General
Topic: TSLA gamed the system - Could Index Funds Be ‘Worse Than Marxism’?
Replies: 107
Views: 11152

Re: TSLA gamed the system - Could Index Funds Be ‘Worse Than Marxism’?

I would recommend two great videos from Ben felix. Some key take away points, 1. Trading sets the price of a stock not AUM. On trading, passive investing only accounts for 5% trading. It means, price is still dictated by the active traders. https://www.youtube.com/watch?v=Wv0pJh8mFk0 2. On other re...
by David Jay
Wed Apr 07, 2021 6:59 pm
Forum: Personal Investments
Topic: Should I get bond funds in my Etrade taxable?
Replies: 3
Views: 334

Re: Should I get bond funds in my Etrade taxable?

dmash wrote: Wed Apr 07, 2021 6:38 pmShould I just buy more VTSAX & VTIAX, and convert my tax-sheltered account into more VBTLX when I do my periodic rebalancing?
Yes, this is exactly what you should do. Hold bonds in tax-advantaged space and hold only stocks in taxable.
by David Jay
Wed Apr 07, 2021 3:45 pm
Forum: Investing - Theory, News & General
Topic: How long to turn 1 million to 2 millions for you?
Replies: 88
Views: 30372

Re: How long to turn 1 million to 2 millions for you?

Zombie thread - no posts for 5 years until this afternoon...
by David Jay
Wed Apr 07, 2021 2:40 pm
Forum: Personal Investments
Topic: FZROX vs FSKAX
Replies: 29
Views: 2541

Re: FZROX vs FSKAX

If I was going to pay double in expenses for a fund, then somebody better do some justification of what makes the "special sauce". Actually, you aren't paying double, you are paying infinitely more expense with FSKAX. :wink: Of course with FSKAX at 0.02% that infinitely higher ER only amo...
by David Jay
Wed Apr 07, 2021 2:33 pm
Forum: Personal Investments
Topic: FZROX vs FSKAX
Replies: 29
Views: 2541

Re: FZROX vs FSKAX

Dude2 wrote: Wed Apr 07, 2021 1:10 pm If I was going to pay double in expenses for a fund, then somebody better do some justification of what makes the "special sauce".
Actually, you aren't paying double, you are paying infinitely more expense with FSKAX. Do the math...:wink:
by David Jay
Wed Apr 07, 2021 10:29 am
Forum: Investing - Theory, News & General
Topic: How much do you spend annually in retirement?
Replies: 112
Views: 10386

Re: How much do you spend annually in retirement?

investnoob wrote: Wed Apr 07, 2021 10:18 am The answers lead me to believe that any retirement spending over what I spend is "high on the hog." Anything less than that isn't. Interesting.
Yup. It is mostly self-referential.