Search found 5085 matches

by David Jay
Sun Jul 15, 2018 8:05 pm
Forum: Personal Finance (Not Investing)
Topic: Should we sell our business?
Replies: 48
Views: 3277

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: 41
Views: 2338

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: 51
Views: 2946

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: 40
Views: 1206

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: 51
Views: 2946

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: 3
Views: 343

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: 6
Views: 727

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: 5
Views: 663

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: 6
Views: 325

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: 8
Views: 1131

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: 1410

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: 150

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: 1410

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: 349

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: 528

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: 80
Views: 8983

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: 3052

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: 25
Views: 3924

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: 3142

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: 4705

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: 4088

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: 1110

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: 5661

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").
by David Jay
Wed Jul 11, 2018 12:21 pm
Forum: Investing - Help with Personal Investments
Topic: [Considering the Vanguard LifeStrategy Fund]
Replies: 66
Views: 4705

Re: [Considering the Vanguard LifeStrategy Fund]

The performance of the Puritan fund has been roughly 1% better than VSMGX over recent years, and I wonder why. Today I will begin to dig into the details. According to M*, Puritan is nearly 67% stocks (versus 60% for VSMGX) with a smaller allocation to international. Those two factors could easily ...
by David Jay
Wed Jul 11, 2018 8:12 am
Forum: Investing - Help with Personal Investments
Topic: When to start taxable?
Replies: 22
Views: 1962

Re: When to start taxable?

magicrat wrote:
Wed Jul 11, 2018 7:35 am
Max your tax advantaged space first unless there is some clear reason not to (e.g., horrible 401k options).
+1

All tax advantaged space that you do not use this year is lost permanently. No way to get it back.
by David Jay
Wed Jul 11, 2018 8:03 am
Forum: Investing - Help with Personal Investments
Topic: Retirement Spending - which account?
Replies: 4
Views: 674

Re: Retirement Spending - which account?

I think the OP's idea of taking money (both distributions and Roth conversions) from the tax-deferred accounts is very sound. Take advantage of the newly enlarged standard deduction and low (10 and 12%) tax brackets. I don't know if I'd do Roth conversions up to the to of the 24% bracket, but certa...
by David Jay
Wed Jul 11, 2018 7:35 am
Forum: Investing - Help with Personal Investments
Topic: [Considering the Vanguard LifeStrategy Fund]
Replies: 66
Views: 4705

Re: Lifestyle Strategies

There is probably not a lot of logic to that discomfort, other than the simple notion that having more positions might reduce the effect of a downturn; The impact that a market downturn will have is primarily the ratio of stocks-to-bonds. That is why there are (4) LifeStrategy funds: 80/20, 60/40, ...
by David Jay
Tue Jul 10, 2018 6:33 pm
Forum: Investing - Help with Personal Investments
Topic: Inherited IRA with RMD strategy
Replies: 11
Views: 1220

Re: Inherited IRA with RMD strategy

Any special reason why you want to put the distributions in a taxable account? Are you utilizing 100% of your tax-advantaged space including employer 401K/403B/457 and HSA as well as personal space tIRA/Roth/backdoor? If you have any space available, use the RMDs for living expenses and increase you...
by David Jay
Tue Jul 10, 2018 2:24 pm
Forum: Investing - Help with Personal Investments
Topic: Roth 401k vs Traditional 401k
Replies: 11
Views: 640

Re: Roth 401k vs Traditional 401k

Your understanding (tax rate now vs. tax rate at withdrawal) is correct if you are not "maxing-out" 100% your tax-advantaged space. The article is playing a bit of a game where the deposit into either version is the same size and the immediate tax benefit goes into a taxable account where you have t...
by David Jay
Tue Jul 10, 2018 2:05 pm
Forum: Investing - Help with Personal Investments
Topic: Comparing Bond Funds
Replies: 4
Views: 338

Re: Comparing Bond Funds

The increasing interest rate environment that we have been in for the last couple of years makes it hard to use past performance to evaluate bond funds. The duration of the bonds most directly affects the asset value, long term funds are suffering much more than short term funds. It is sometimes har...
by David Jay
Tue Jul 10, 2018 11:35 am
Forum: Investing - Theory, News & General
Topic: Dow 40000 prediction for 2025
Replies: 44
Views: 3798

Re: Dow 40000 prediction for 2025

nobody knows nothin'
by David Jay
Mon Jul 09, 2018 8:38 pm
Forum: Investing - Theory, News & General
Topic: Silver ETF [How does it track the spot price?]
Replies: 17
Views: 907

Re: Silver ETF [How does it track the spot price?]

All investing is speculation Some assets periodically spit out cash, some don't. If they periodically spit out cash, it is not unreasonable to assume that in the long run, the market will pay a reasonable price for that stream of payments. Even if there were no market, you still get the payment. If...
by David Jay
Mon Jul 09, 2018 4:59 pm
Forum: Personal Consumer Issues
Topic: App - Index app
Replies: 4
Views: 213

Re: App - Index app

I use the CNBC app. In addition to the primary market tickers (Dow, S&P, NAS) in the home page, it also lets you have a watch list of tickers to follow. I use the ETF class ticker that corresponds to each of my (Admiral class) mutual funds, so I can get a sense of their current direction during the ...
by David Jay
Mon Jul 09, 2018 1:38 pm
Forum: Investing - Help with Personal Investments
Topic: Any Dry Powder Strategies?
Replies: 103
Views: 5661

Re: Any Dry Powder Strategies?

TheTimeLord wrote:
Mon Jul 09, 2018 8:35 am
Nearing retirement...
We’re waiting for you on the 2019 Roll call thread. :D
by David Jay
Mon Jul 09, 2018 11:53 am
Forum: Investing - Help with Personal Investments
Topic: Roth Account
Replies: 4
Views: 392

Re: Roth Account

Often a Target Date or LifeStrategy can be that one fund. Pick the one that matches your desired mix of stocks/bonds to keep your asset mix where you want. 70/30, 60/40 stocks/bonds, etc. I really like the LifeStrategy family of funds. Tell us about your tolerance for account balance volatility (in...
by David Jay
Mon Jul 09, 2018 9:27 am
Forum: Investing - Help with Personal Investments
Topic: Investing in real estate with Roth IRA
Replies: 8
Views: 789

Re: Investing in real estate with Roth IRA

If I use the cash, if I buy a $1M home, w 20% down, then I can deduct all the mortgage interest ($33,996/year), points ($16,000), local property tax ($12,500), etc. My calculation is that my deduction would be $62,496, and tax saving would be $15,624. Those look like the 2017 tax regulations. There...
by David Jay
Sun Jul 08, 2018 8:27 pm
Forum: Investing - Theory, News & General
Topic: Silver ETF [How does it track the spot price?]
Replies: 17
Views: 907

Re: Silver ETF [How does it track the spot price?]

I want to welcome you to the forum. I am afraid that you did not get any substantive replies because the topic of your first post is far away from the core of Boglehead investing - like going on a pickup forum and asking for advice about your Corvette. We are very much focused on broad-based index f...
by David Jay
Sun Jul 08, 2018 8:05 pm
Forum: Investing - Help with Personal Investments
Topic: Need help with my fund selections!
Replies: 4
Views: 457

Re: Need help with my fund selections!

Actually, your fund selections aren’t all that messy. Al little bit of fine tuning is where I would begin. Start by getting rid of all the 1% funds in the 401K. A one percent holding has no power to move your portfolio, so it is needless complexity. I don’t know your ages, but I am guessing that you...
by David Jay
Fri Jul 06, 2018 8:36 am
Forum: Local Chapters and Bogleheads Community
Topic: Roll Call for the Retirement Class of 2018!
Replies: 227
Views: 30937

Re: Roll Call for the Retirement Class of 2018!

pennywise wrote:
Thu Jul 05, 2018 10:47 am
I hope to be in the retirement class of 2019 but for now what a joyous upcoming change for my guy.
We'll be waiting for you over on the "Class of 2019" thread. I also turn 62 in 2019 and I plan to retire in April.
by David Jay
Fri Jul 06, 2018 7:37 am
Forum: Investing - Theory, News & General
Topic: Index Fund vs. ETF for Long Term Investment
Replies: 21
Views: 1684

Re: Index Fund vs. ETF for Long Term Investment

Earl Lemongrab wrote:
Thu Jul 05, 2018 11:39 pm
There are many ways that I could make more money but I am unwilling to do those things. Like move my retirement accounts from custodian to custodian for a few hundred dollars in bonuses.
A few thousand in my case.
Good. I'm glad that you find it to be worth the effort.
by David Jay
Fri Jul 06, 2018 7:32 am
Forum: Investing - Theory, News & General
Topic: Index Fund vs. ETF for Long Term Investment
Replies: 21
Views: 1684

Re: Index Fund vs. ETF for Long Term Investment

The goal of investing is to make more money... For you, perhaps. What is the goal of investing for you? To provide a retirement that maintains our current lifestyle , is low effort and can be maintained by my spouse after my demise. (that is pretty much word-for-word from my IPS) For instance, the ...
by David Jay
Thu Jul 05, 2018 10:19 pm
Forum: Investing - Theory, News & General
Topic: Larry Swedroe: Avoid Private Real Estate Assets
Replies: 9
Views: 1650

Re: Larry Swedroe: Avoid Private Real Estate Assets

The problem is... there are no commissions paid to the “advisor” when you purchase VNQ I think VNQ qualifies as a publicly traded REIT fund by Larry's definition. My comment was tongue in cheek. Non-liquid, private REITs pay commissions to the sellers. Therefore sellers would rather sell you privat...
by David Jay
Thu Jul 05, 2018 8:17 pm
Forum: Investing - Theory, News & General
Topic: Larry Swedroe: Avoid Private Real Estate Assets
Replies: 9
Views: 1650

Re: Larry Swedroe: Avoid Private Real Estate Assets

The problem is... there are no commissions paid to the “advisor” when you purchase VNQ
by David Jay
Thu Jul 05, 2018 7:50 pm
Forum: Investing - Theory, News & General
Topic: Index Fund vs. ETF for Long Term Investment
Replies: 21
Views: 1684

Re: Index Fund vs. ETF for Long Term Investment

Earl Lemongrab wrote:
Thu Jul 05, 2018 5:43 pm
The goal of investing is to make more money...
For you, perhaps.

There are many ways that I could make more money but I am unwilling to do those things. Like move my retirement accounts from custodian to custodian for a few hundred dollars in bonuses.
by David Jay
Thu Jul 05, 2018 3:40 pm
Forum: Personal Finance (Not Investing)
Topic: Selling Main Residence Tax Question for Widow
Replies: 10
Views: 414

Re: Selling Main Residence Tax Question for Widow

Welcome to the forum. Sorry for your loss. I googled around and found a site that discussed this in some detail (is a Google search more authoritative than an anonymous forum???). The controlling issue appears to be that both spouses must have lived in the home for 2 of the last 5 years to claim the...
by David Jay
Thu Jul 05, 2018 3:20 pm
Forum: Investing - Theory, News & General
Topic: Index Fund vs. ETF for Long Term Investment
Replies: 21
Views: 1684

Re: Index Fund vs. ETF for Long Term Investment

Regular poster here "nisiprius" says it this way: It's the same beer. Mutual funds are beer in bottles, ETFs are beer in cans. Except that the some of bottles are only available at the company store, where the cans are available everywhere. different strokes - depends on what's important to you . E...
by David Jay
Thu Jul 05, 2018 3:01 pm
Forum: Investing - Help with Personal Investments
Topic: Vanguard Website: Discrepancy between pages on "available to trade"
Replies: 3
Views: 235

Re: Vanguard Website: Discrepancy between pages on "available to trade"

Summary pages are updated overnight. I have often observed account balances, etc. as different from the account details if I check them in the evening. They are always correct before 9AM (I have not been concerned enough to stay up all night to see exactly when they update). So again - detail is cor...
by David Jay
Thu Jul 05, 2018 1:29 pm
Forum: Investing - Help with Personal Investments
Topic: Portfolio Review
Replies: 5
Views: 552

Re: Portfolio Review

Welcome to the forum. Most here would follow CMH - the "Cost Matters Hypothesis". Those active funds with ERs between .4 and .7 would probably be dropped in favor of broad-based index funds. For one specific, the Freedom Index 2040 fund is a "fund-of-funds" that holds US+Intl. stocks as well as bond...
by David Jay
Thu Jul 05, 2018 1:18 pm
Forum: Investing - Help with Personal Investments
Topic: Morgan Stanley Wealth Management Thoughts
Replies: 27
Views: 2105

Re: Morgan Stanley Wealth Management Thoughts

I am 90% stocks and grew the portfolio from $2.4M in 2009 to $4.2M in 2018. Without adding any money You have done well in an extended bull market, but you have under-performed the market as a whole. If you had put it all in an S&P 500 Index fund in 2009, your $2.4M would be worth $5.8M today. We a...