Search found 4653 matches

by David Jay
Mon Apr 23, 2018 2:45 pm
Forum: Investing - Theory, News & General
Topic: Boglehead Philosophy Open To Change?
Replies: 197
Views: 7818

Re: Boglehead Philosophy Open To Change?

Just because there is a book with the words "boglehead" and "three fund" coming out doesn't mean that all those who consider themselves Bogleheads think a three fund portfolio is the best way to invest. It is one of hundreds of great ways to invest. I bet there are 150 portfolios that are better th...
by David Jay
Mon Apr 23, 2018 1:45 pm
Forum: Investing - Theory, News & General
Topic: Boglehead Philosophy Open To Change?
Replies: 197
Views: 7818

Re: Boglehead Philosophy Open To Change?

HomerJ wrote:
Mon Apr 23, 2018 11:02 am
Note the Warren Buffet's Berkshire Hathaway stock has never paid a dividend, yet anyone who invested in it 30 years ago is fabulously wealthy today.
Yeah, I was thinking the same thing. I noticed that snarly had invoked Warren Buffet's name at least 3-4 times in this thread.
by David Jay
Mon Apr 23, 2018 12:37 pm
Forum: Personal Finance (Not Investing)
Topic: Life Settlement - Term insurance
Replies: 10
Views: 443

Re: Life Settlement - Term insurance

There must be a whole life conversion available in your policy in order for the firm to get any value out of your policy (and of course, they are only going to pay you if they receive some value).
by David Jay
Sat Apr 21, 2018 7:32 pm
Forum: Investing - Help with Personal Investments
Topic: Can I roll-over aSingle Premium Equity Indexed Deferred Annuity?
Replies: 3
Views: 363

Re: Can I roll-over aSingle Premium Equity Indexed Deferred Annuity?

What IRS penalty do you feel applies to withdrawals from an annuity purchased with cash?

Could you be confusing an annuity withdrawal with withdrawals from pre-tax retirement accounts? There is a penalty for early withdrawal (before 59.5) from these accounts (examples: IRA, 401K, etc.).
by David Jay
Fri Apr 20, 2018 11:17 am
Forum: Investing - Help with Personal Investments
Topic: Updated with questions about transferring work simple IRA to frozen simple IRA
Replies: 30
Views: 1285

Re: Updated with questions about transferring work simple IRA to frozen simple IRA

Oh, I get the part about them needing to stay in business and my employer wanting the broker. I am actually really nervous about basically letting the broker know he would not be making money off of me. So, how do I be sensitive? Just firm, but polite? I think sensitivity would be to not ask questi...
by David Jay
Thu Apr 19, 2018 7:52 pm
Forum: Investing - Help with Personal Investments
Topic: Cash [Balance] Avoidance with TD Ameritrade ETFs
Replies: 8
Views: 432

Re: Cash [Balance] Avoidance with TD Ameritrade ETFs

3000 some shares? And you’re worried about arbitrage?

10 million shares of SPTM were traded today.
by David Jay
Thu Apr 19, 2018 7:44 pm
Forum: Personal Finance (Not Investing)
Topic: Social Security retirement and working
Replies: 5
Views: 842

Re: Social Security retirement and working

I am 64 and just filed for SS retirement. I plan on still working.... It may be water under the bridge, but why are you taking Social Security at age 64 if you are working and have a source of income already? Every year you defer Social Security until age 70 (or thereabouts) you will increase your ...
by David Jay
Thu Apr 19, 2018 7:24 pm
Forum: Personal Consumer Issues
Topic: anyone else not liking the new cars?
Replies: 158
Views: 16206

Re: anyone else not liking the new cars?

Sandtrap wrote:
Sat Oct 14, 2017 12:09 pm
Perhaps that's why so many folks are going "retro". :D

1969 Pontiac GTO (the Judge) . . .
See, I knew I liked you! That is my “price is no object” vehicle. In Orange.
by David Jay
Thu Apr 19, 2018 6:51 pm
Forum: Investing - Help with Personal Investments
Topic: Finally Getting out of Annuities
Replies: 5
Views: 622

Re: Finally Getting out of Annuities

I would open Vanguard traditional IRA accounts first and transfer into those. Then I would convert within the Vanguard system. That way there is less opportunity for a screw-up and you only have the Vanguard 1099 to worry about come tax time.
by David Jay
Thu Apr 19, 2018 6:47 pm
Forum: Investing - Help with Personal Investments
Topic: Updated with questions about transferring work simple IRA to frozen simple IRA
Replies: 30
Views: 1285

Re: Updated with questions about transferring work simple IRA to frozen simple IRA

If it doesn't work out, not even sure if it makes sense for me to do this with that kind of load? My employer matches to 3%, but with a 5.75% load, not sure where that leaves me. It still makes sense to take the match . Contribute 3% and employer contributes 3%. Your investment ”cost” is 50% of you...
by David Jay
Thu Apr 19, 2018 6:33 pm
Forum: Personal Consumer Issues
Topic: Perks of Owning Certain Individual Stocks
Replies: 28
Views: 3098

Re: Perks of Owning Certain Individual Stocks

I’m doing the cruise thing, but only holding the stock for about 6 weeks (buying a month before departure). That’s because we normally cruise a different line but are cruising with friends on their favorite line. $250 onboard credit. 3.9% immediate return, but that’s an annualized 33.8% :wink:
by David Jay
Thu Apr 19, 2018 6:15 pm
Forum: Investing - Theory, News & General
Topic: How good are Vanguard bond funds?
Replies: 52
Views: 4749

Re: How good are Vanguard bond funds?

I like Vanguard Extended Duration:
1 year rank: 3
3 year rank: 80
5 year rank: 1
by David Jay
Thu Apr 19, 2018 3:45 pm
Forum: Personal Finance (Not Investing)
Topic: What is best strategy for taking RMD from VG IRA
Replies: 26
Views: 1916

Re: What is best strategy for taking RMD from VG IRA

I am 69 and trying to analyze the best strategy for removing my required RMD amount from my Vanguard IRA when I reach 70 next year. My VG IRA account is made up of the following 10 accounts. VEXAX 3% VIGAX 1% VBILX 1% VBIRX 1% VBTLX 28% VTABX 4% VTIAX 17% VTSAX 32% VWIAX 6% VWENX 6% Presently this ...
by David Jay
Thu Apr 19, 2018 2:36 pm
Forum: Personal Finance (Not Investing)
Topic: “The Smell of Retiree Mon$y...”
Replies: 57
Views: 7939

Re: “The Smell of Retiree Mon$y...”

Since DH and I know that past charities will continue to mail us asking for donations, we decided to keep the number of charities we support small to avoid an ever-increasing avalanche of mail solicitations. Great comment. Pick a couple-or-three great causes and support them well. It also improves ...
by David Jay
Wed Apr 18, 2018 6:53 pm
Forum: Investing - Theory, News & General
Topic: Theoretical question. What would happen if 100% of investors are buy and hold.
Replies: 19
Views: 2019

Re: Theoretical question. What would happen if 100% of investors are buy and hold.

Active investing would become REALLY profitable in that scenario. I'd become an active investor. Yup. I say that my trigger is when the SPIVA scorecard shows 40% of active funds outperforming their indexes then I will get serious about active investing again. It is now 20% so active funds have a lo...
by David Jay
Wed Apr 18, 2018 1:18 pm
Forum: Investing - Theory, News & General
Topic: Theoretical question. What would happen if 100% of investors are buy and hold.
Replies: 19
Views: 2019

Re: Theoretical question. What would happen if 100% of investors are buy and hold.

Active investing would become REALLY profitable in that scenario. I'd become an active investor. Yup. I say that my trigger is when the SPIVA scorecard shows 40% of active funds outperforming their indexes. Then I will get serious about active investing again. It is now 20% so active funds have a l...
by David Jay
Wed Apr 18, 2018 12:49 pm
Forum: Investing - Help with Personal Investments
Topic: ETF on Simple IRA and 401k
Replies: 3
Views: 263

Re: ETF on Simple IRA and 401k

Most 401K plans use traditional mutual funds, not ETFs. You would likely need a self-directed account to purchase ETFs. In the case of Vanguard, the ETF (VTI) is a share class of the Total Stock Market mutual fund, so they are exactly the same holdings. The ER is .04%, the same as VTSAX (Admiral cla...
by David Jay
Wed Apr 18, 2018 12:23 pm
Forum: Investing - Theory, News & General
Topic: Theoretical question. What would happen if 100% of investors are buy and hold.
Replies: 19
Views: 2019

Re: Theoretical question. What would happen if 100% of investors are buy and hold.

Not possible because not all investors are in the accumulation phase. There will always be sellers.
by David Jay
Wed Apr 18, 2018 12:19 pm
Forum: Personal Finance (Not Investing)
Topic: Check my logic please (life insurance)
Replies: 19
Views: 877

Re: Check my logic please (life insurance)

I think a 25 year level-term policy is fine.

I cancelled my last term policy (before term expiration) in my mid-50s because at that point our portfolio was adequate to support my wife in the event of my demise.
by David Jay
Wed Apr 18, 2018 8:22 am
Forum: Investing - Help with Personal Investments
Topic: Retirement Plan Review please
Replies: 43
Views: 4001

Re: Retirement Plan Review please

A few things to keep in mind when planning for post-70 years and estate: 1. You have discussed making charitable donations from your estate. Be aware that there is a special feature in the tax code called a qualified charitable distribution (QCD). A QCD can be given from tax-deferred (IRA/401K), you...
by David Jay
Wed Apr 18, 2018 8:04 am
Forum: Investing - Help with Personal Investments
Topic: Why am I even holding BND? It has only been losing me money.
Replies: 62
Views: 8270

Re: Why am I even holding BND? It has only been losing me money.

Agggm wrote:
Sat Apr 14, 2018 6:28 pm
I hold no bonds. No plans to ever hold them.
That was my plan too, until age 58 (4 years before retirement). Then I started to allocate out of stocks.
by David Jay
Wed Apr 18, 2018 7:52 am
Forum: Investing - Theory, News & General
Topic: Rise in rates continues - good for fixed income investors and banks
Replies: 6
Views: 1148

Re: Rise in rates continues - good for fixed income investors and banks

Total Bond SEC yield has been in the 2.9x% range for the last month or so.
by David Jay
Wed Apr 18, 2018 7:50 am
Forum: Personal Finance (Not Investing)
Topic: Quitting job - what to do if getting walked to the door
Replies: 106
Views: 10821

Re: Quitting job - what to do if getting walked to the door

Employee Manual should provide details.

For instance, our employee manual says that an employee is covered through the end of the month when they separate from service.
by David Jay
Tue Apr 17, 2018 6:58 pm
Forum: Investing - Help with Personal Investments
Topic: I want to pay off my mortgage. Am I crazy?
Replies: 54
Views: 5161

Re: I want to pay off my mortgage. Am I crazy?

It feels great. Something to be said for lower monthly expenses.
by David Jay
Tue Apr 17, 2018 6:39 pm
Forum: Investing - Help with Personal Investments
Topic: Retirement Plan Review please
Replies: 43
Views: 4001

Re: Retirement Plan Review please

My idea was to have more than two years of MM funds for a bad market or pre SS income and while spending that money as much as possible from the IRA to a Roth. The taxes on the IRA moves would be on the low side since my income would be very low if I spent the MM fund. But it spends down after-tax ...
by David Jay
Tue Apr 17, 2018 5:56 pm
Forum: Investing - Help with Personal Investments
Topic: Retirement Plan Review please
Replies: 43
Views: 4001

Re: Retirement Plan Review please

Why does kitties say 'prospective retiree actually accumulates extra bonds in the years leading up to retirement, and then spends down that volatility-dampening bond reserve in the first half of retirement'. As far as I know you cannot determine where the rmds come from. It comes from all of the mo...
by David Jay
Mon Apr 16, 2018 7:41 pm
Forum: Investing - Theory, News & General
Topic: Should someone close to retirement use a Backdoor Roth?
Replies: 9
Views: 1248

Re: Should someone close to retirement use a Backdoor Roth?

MIL does not have any IRA accounts in her name. Their income is too large to qualify directly for a ROTH. She does not earn income but they file jointly. Can she still contribute to a traditional IRA and then turn it into a backdoor ...? YES. Spousal income covers her IRA contribution if they are M...
by David Jay
Mon Apr 16, 2018 5:00 pm
Forum: Investing - Theory, News & General
Topic: Class Action suit against DDD?
Replies: 13
Views: 2009

Re: Class Action suit against DDD?

I am not a class member, but if I were, I'd hope you and others had David Jay's attitude and skip it--why enrich the lawyers--so my share of the recovery would increase. I didn't skip it. I got my 83 cents. But I would like to see a higher bar. Several micro-cap firms that I have owned had to pay o...
by David Jay
Mon Apr 16, 2018 7:53 am
Forum: Personal Consumer Issues
Topic: Cruises: How to Value Onboard Credit
Replies: 29
Views: 1550

Re: Cruises: How to Value Onboard Credit

And on another cruise with Celebrity, we could use the credits for the daily gratuity plus other things. Celebrity is the "up-market" Royal Caribbean brand, so I would expect policies to be the similar. Taking a Princess cruise this fall - gratuities can't be paid with OBC. So it is a company-by-co...
by David Jay
Mon Apr 16, 2018 7:48 am
Forum: Personal Consumer Issues
Topic: Cruises: How to Value Onboard Credit
Replies: 29
Views: 1550

Re: Cruises: How to Value Onboard Credit

Can they be applied to gratuities? On RC, yes. We applied onboard credits to gratuities in January. I’ve forgotten... are gratuities based on a percentage of the fare, or a fixed amount per person/cabin? The daily gratuities are billed as fixed per person. How very regressive and gratuitous. There'...
by David Jay
Sun Apr 15, 2018 7:09 pm
Forum: Personal Consumer Issues
Topic: Cruises: How to Value Onboard Credit
Replies: 29
Views: 1550

Re: Cruises: How to Value Onboard Credit

letsgobobby wrote:
Sun Apr 15, 2018 7:02 pm
Can they be applied to gratuities?
On RC, yes. We applied onboard credits to gratuities in January.
by David Jay
Sun Apr 15, 2018 11:26 am
Forum: Personal Finance (Not Investing)
Topic: Optimized Retirement Withdrawal Strategy
Replies: 11
Views: 1204

Re: Optimized Retirement Withdrawal Strategy

I second the ERN series for those who want to dig into the concepts.

If you want a calculator where you just plug in your numbers and it gives you the “best” solution - good luck with that!
by David Jay
Sun Apr 15, 2018 11:05 am
Forum: Investing - Help with Personal Investments
Topic: Easy way to compare funds, indexes, stock
Replies: 16
Views: 1073

Re: Easy way to compare funds, indexes, stock

pkcrafter wrote:
Sun Apr 15, 2018 10:50 am
This is almost a totally useless exercise.
I was thinking the same thing.

With my analytical personality, I need encouragement to “stay the course”. This sounds like a great way to create buyer’s remorse, getting me to jump from fund-to-fund chasing yield.
by David Jay
Sun Apr 15, 2018 10:34 am
Forum: Investing - Help with Personal Investments
Topic: Retirement Plan Review please
Replies: 43
Views: 4001

Re: Retirement Plan Review please

Would I convert IRA total stock to roth if the market is up or same and convert IRA stable value if market is down? Do I choose depending? I have gone back-and-forth on my thinking about this. In the end I decided that it was too far “down in the weeds” to add this to my IPS when, in my case, I am ...
by David Jay
Sun Apr 15, 2018 10:22 am
Forum: Investing - Help with Personal Investments
Topic: Retirement Plan Review please
Replies: 43
Views: 4001

Re: Retirement Plan Review please

So let’s review everything to get from retirement to age 70: 1. Withdraw from tax-deferred and do Roth conversions to the top of the 22% bracket each year because it is very unlikely that you will ever be in a lower tax bracket after age 70 due to SS, pensions and filing as single. Take the 22% now ...
by David Jay
Sat Apr 14, 2018 9:04 am
Forum: Investing - Help with Personal Investments
Topic: Retirement Plan Review please
Replies: 43
Views: 4001

Re: Retirement Plan Review please

Re selling 401k total stock to stable value: would the Target retirement 2020 work for stable value? It should have a glide path to lower stocks. One should not hold money needed for a specific purpose in the next 5 years in stocks. For me , that includes a fund that holds a portion in stocks. As a...
by David Jay
Fri Apr 13, 2018 8:01 pm
Forum: Investing - Help with Personal Investments
Topic: Retirement Plan Review please
Replies: 43
Views: 4001

Re: Retirement Plan Review please

Re selling 401k total stock: would the Target retirement 202o for that purpose? It should have a glide path to lower stocks. You can take the funds from either source, but you do not want to hold any money for 64-70 living expenses in stocks. If there was a huge market downturn (think 40% drop) and...
by David Jay
Fri Apr 13, 2018 7:22 pm
Forum: Investing - Help with Personal Investments
Topic: Retirement Plan Review please
Replies: 43
Views: 4001

Re: Retirement Plan Review please

What do you think about me working part time at 64, putting as much as possible into the 401k and a roth of course, using the MM fund for whatever other money I needed. There would be a low income amount that year. Then I could move as much of the tIRA money over to Roth and stay under the 22% brac...
by David Jay
Fri Apr 13, 2018 7:14 pm
Forum: Investing - Help with Personal Investments
Topic: Retirement Plan Review please
Replies: 43
Views: 4001

Re: Retirement Plan Review please

Amid all the talk about Roth conversions I have come to believe that one should not convert everything. I think holding some funds in an IRA as a "savings account" dedicated to possible large medical expenses or long term care expenses is a prudent, cautious option. If you look at my April 10 post,...
by David Jay
Fri Apr 13, 2018 2:50 pm
Forum: Investing - Theory, News & General
Topic: Bull Market Timing
Replies: 60
Views: 4420

Re: Bull Market Timing

gmaynardkrebs wrote:
Fri Apr 13, 2018 1:15 pm
The peak year was 1957.
That makes me PEAK Boomer! :happy
by David Jay
Fri Apr 13, 2018 12:42 pm
Forum: Investing - Theory, News & General
Topic: Bull Market Timing
Replies: 60
Views: 4420

Re: Bull Market Timing

I think this bull market started in the mid-1980s, when the first wave of baby boomers reached their 30s and started saving for retirement, just when the 401K era was beginning in earnest. When it ends, I don't know, but the leading edge of the boomers is now 70 years old. And the tail end turns 54...
by David Jay
Fri Apr 13, 2018 11:29 am
Forum: Investing - Help with Personal Investments
Topic: Retirement Plan Review please
Replies: 43
Views: 4001

Re: Retirement Plan Review please

If one is going to live out of pre-tax from age 64/65 to age 70 then they need to have more fixed investments in pre-tax. The way we do that is sell $160,000 of Total Stock in my 401K and put the money in fixed investments. I don't know your 401k choices, but look for a stable value fund, a short te...
by David Jay
Thu Apr 12, 2018 6:30 pm
Forum: Investing - Help with Personal Investments
Topic: Help with understanding indexed Annuities
Replies: 2
Views: 225

Re: Help with understanding indexed Annuities

Wow, index annuities inside IRAs.

Type “index annuity” into the search box. Lots of discussions (few are positive).
by David Jay
Thu Apr 12, 2018 6:21 pm
Forum: Personal Finance (Not Investing)
Topic: Help me decide what to do with my 30 year old NML whole life policies
Replies: 15
Views: 1139

Re: Help me decide what to do with my 30 year old NML whole life policies

If it’s me, I’m outta’ these. So you are going to pay another 36,000 for the privilege of keeping your $410,000 tied up for the next 20 years so that someone else can cash in? Put the $446,000 in a 60/40 fund for 8-9 years, take out the million and spend it WITH your kids. Why do they have to wait f...
by David Jay
Thu Apr 12, 2018 3:13 pm
Forum: Personal Finance (Not Investing)
Topic: DINK High Income Earners - how to lessen the tax impact?
Replies: 25
Views: 2327

Re: DINK High Income Earners - how to lessen the tax impact?

While it won't reduce your immediate taxes (because it is funded with after-tax dollars), I would still look at a backdoor Roth for him. If your employer will accept a rollover of your IRA INTO the 401K, you would then have no traditional IRA. This clears the way for a backdoor Roth each year. Detai...
by David Jay
Thu Apr 12, 2018 1:35 pm
Forum: Investing - Theory, News & General
Topic: Should someone close to retirement use a Backdoor Roth?
Replies: 9
Views: 1248

Re: Should someone close to retirement use a Backdoor Roth?

ThriftyPhD wrote:
Thu Apr 12, 2018 12:53 pm
If your mother in law does not have a traditional IRA account, she could do a backdoor Roth.
This!

Family income is all that is required, she can do this without any personal earnings.
by David Jay
Thu Apr 12, 2018 1:32 pm
Forum: Investing - Help with Personal Investments
Topic: Request help with 3-fund portfolio
Replies: 5
Views: 465

Re: Request help with 3-fund portfolio

Mops wrote:
Thu Apr 12, 2018 12:57 pm
Are there pro's/con's related to choosing only 3 funds for the entire amount?
Pro: Simplicity Con: ...

I would only choose (6) funds if I ENJOYED complexity.
by David Jay
Thu Apr 12, 2018 12:30 pm
Forum: Investing - Theory, News & General
Topic: Shorting the actively managed mutual fund market
Replies: 26
Views: 1883

Re: Shorting the actively managed mutual fund market

There's a certain mental puzzle I've been trying to deal with. It is, basically, why not a contrarian strategy? If most investors underperform the market, why isn't it easy to "just" to do the opposite of what the crowd is doing? It sounds easy and of course contrarian investing has been around for...
by David Jay
Thu Apr 12, 2018 11:59 am
Forum: Personal Finance (Not Investing)
Topic: Could you support family on 1 income?
Replies: 88
Views: 5646

Re: Could you support family on 1 income?

Yes. And we have. Since 1985. When our daughter was born.
by David Jay
Wed Apr 11, 2018 8:12 pm
Forum: Personal Finance (Not Investing)
Topic: Roth Conversion Strategy post TCJA
Replies: 9
Views: 754

Re: Roth Conversion Strategy post TCJA

I would think you want the vast majority of the funds to transfer early, then let the growth occur on the Roth side rather than traditional (assuming growth type investment). I think that is the point of the “barbell” strategy - convert a bunch early and then convert some at the end of the year to ...