Search found 4244 matches

by David Jay
Mon Jan 22, 2018 9:06 pm
Forum: Investing - Help with Personal Investments
Topic: Backdoor Roth IRA
Replies: 2
Views: 214

Re: Backdoor Roth IRA

midwestyank wrote:
Mon Jan 22, 2018 8:14 pm
So could we use "my" account as a non deductible IRA to do the backdoor conversion...?
YES

(Limited to $5500 per year, $6500 after age 50)
by David Jay
Mon Jan 22, 2018 7:59 pm
Forum: Investing - Help with Personal Investments
Topic: Am I being greedy?
Replies: 36
Views: 3449

Re: Am I being greedy?

Like others, I was 100% stocks into my mid-50s. But you need a steel spine during the downturns that will come.
by David Jay
Mon Jan 22, 2018 7:50 pm
Forum: Personal Finance (Not Investing)
Topic: Difference between AUM fee and fees included in the expense ratio
Replies: 7
Views: 335

Re: Difference between AUM fee and fees included in the expense ratio

Stuff like loads and 12b-1 are hidden in the ER. Actually, loads are in addition to the ER of a mutual fund. Sometimes, if there is an AUM fee, the loads may be reduced or eliminated, but not always. Yeah, I could have phrased that better. Loads (front end, rear end or recurring) are taken out by t...
by David Jay
Mon Jan 22, 2018 7:32 pm
Forum: Personal Finance (Not Investing)
Topic: Difference between AUM fee and fees included in the expense ratio
Replies: 7
Views: 335

Re: Difference between AUM fee and fees included in the expense ratio

While there may be some possible "extra" fees at some brokerages, in general there are only two fees: ER and AUM. The ER is extracted from the fund assets before the NAV is calculated. The AUM is then in addition to fund expenses (and as "got lucky" mentioned applies to all assets including T-bills,...
by David Jay
Sun Jan 21, 2018 6:40 pm
Forum: Investing - Theory, News & General
Topic: "Why You Should Probably Just Give Up Trying To Beat The Stock Market"
Replies: 19
Views: 2996

Re: "Why You Should Probably Just Give Up Trying To Beat The Stock Market"

When you compound over longer periods, have to think that even Vanguard-like fees push some (guessing not many) active funds above the "outperformance" threshold. I don't think there is much debate that active funds, in aggregate, perform similarly to passive funds before fees . The problem is that...
by David Jay
Sat Jan 20, 2018 5:25 pm
Forum: Investing - Help with Personal Investments
Topic: Income in retirement questions
Replies: 15
Views: 1988

Re: Income in retirement questions

We could provide better advice if we knew your entire picture: Total portfolio size (and how much in what kind account), retirement date, projected expenses in retirement, etc. Have you worked through the implications of when to file for SS benefits? It can make a big difference in your planning... ...
by David Jay
Sat Jan 20, 2018 3:11 pm
Forum: Investing - Help with Personal Investments
Topic: Opinions on 65 year old's portfolio
Replies: 11
Views: 1436

Re: Opinions on 65 year old's portfolio

Questions: I have seen many discussions on these issues individually but would like opinions based upon my own unique scenario. I have the option to take a lump sum of $660,000 in lieu of the pension. The math seems to favor the pension, even without COLA. Is there a general consensus on this type ...
by David Jay
Fri Jan 19, 2018 10:28 pm
Forum: Investing - Theory, News & General
Topic: How do Bogleheads reconcile efficient markets theory with Bitcoin?
Replies: 45
Views: 2166

Re: How do Bogleheads reconcile efficient markets theory with Bitcoin?

Lots of people on this board seem to believe in a fairly strict version of EMH. How does Bitcoin fit into this view of the investing world? Is Bitcoin fairly valued by the market at every moment? Has Bitcoin been fairly valued over the last month or year? How do you reconcile these things? EMT says...
by David Jay
Fri Jan 19, 2018 10:01 pm
Forum: Investing - Help with Personal Investments
Topic: Edward Jones Accounts
Replies: 22
Views: 2197

Re: Edward Jones Accounts

Here is some reading (the site search results for "Leaving Edward Jones): https://www.google.com/search?sitesearc ... ward+jones
by David Jay
Fri Jan 19, 2018 6:22 pm
Forum: Investing - Help with Personal Investments
Topic: Why even have Bonds in a 401k?
Replies: 30
Views: 2906

Re: Why even have Bonds in a 401k?

I am a bit averse to selling my equities in the 401k as those were acquired a few years ago and the cost basis of those funds are quite low. What significance do you attach to "cost basis" inside a 401K? Serious question. What possible difference does it make with these funds? I have never even con...
by David Jay
Fri Jan 19, 2018 4:14 pm
Forum: Investing - Help with Personal Investments
Topic: Income tax on 401k vs roth 401k, please help
Replies: 5
Views: 348

Re: Income tax on 401k vs roth 401k, please help

"Five K" is asking the right question. The tax savings now needs to be weighed against the tax cost later.

The same issue applies between traditional IRA and Roth IRA decisions, the WIKI section on that may provide additional insight here: https://www.bogleheads.org/wiki/Traditional_versus_Roth
by David Jay
Fri Jan 19, 2018 11:31 am
Forum: Investing - Theory, News & General
Topic: Active Core Bond Beats Total Index in 2017
Replies: 12
Views: 2251

Re: Active Core Bond Beats Total Index in 2017

Better, also meaning less volatile during a turn down so I can sell and buy equities. Why exactly would you expect a fund with fewer government bonds and a lower credit rating to perform better in a crisis? If your attempting to answer my question with yet another question, Its not working. But I g...
by David Jay
Fri Jan 19, 2018 9:36 am
Forum: Investing - Help with Personal Investments
Topic: How to step in?
Replies: 10
Views: 974

Re: How to step in?

I am fortunate to have a good amount of savings but I have not invested much or well. When I get more educated, I will post details and ideas for feedback. In the meantime, pls help with a topic where I’m struggling. I have over 100,000 in cash and I’d like to start investing. I think understand do...
by David Jay
Fri Jan 19, 2018 8:44 am
Forum: Investing - Theory, News & General
Topic: Active Core Bond Beats Total Index in 2017
Replies: 12
Views: 2251

Re: Active Core Bond Beats Total Index in 2017

rerod wrote:
Fri Jan 19, 2018 12:29 am
Better, also meaning less volatile during a turn down so I can sell and buy equities.
Why exactly would you expect a fund with fewer government bonds and a lower credit rating to perform better in a crisis?
by David Jay
Fri Jan 19, 2018 8:41 am
Forum: Investing - Theory, News & General
Topic: Active Core Bond Beats Total Index in 2017
Replies: 12
Views: 2251

Re: Active Core Bond Beats Total Index in 2017

VCOBX has an average credit quality of BBB (vs. Total Bond's AA). VCOBX -- Government (39.21%)... VBTLX (Total Bond Index, admiral shares) -- Government (45.80%)... These two items more than account for any suggested performance benefit from active. Adjust those 2 and BND significantly outperforms....
by David Jay
Fri Jan 19, 2018 8:21 am
Forum: Investing - Help with Personal Investments
Topic: 457 worth it with these fees?
Replies: 47
Views: 1424

Re: Formula to determine if Pre-tax is worth Higher Fees

My rule of thumb is that you should only consider taxable investing if the extra cost, multiplied by the number of years you will be in the plan, exceeds twice your tax rate on qualified dividends (15% for most taxpayers, plus state tax). Thus even 1.5% is worth paying unless you expect to spend mo...
by David Jay
Thu Jan 18, 2018 11:11 pm
Forum: Investing - Help with Personal Investments
Topic: 457 worth it with these fees?
Replies: 47
Views: 1424

Re: Formula to determine if Pre-tax is worth Higher Fees

fortfun wrote:
Thu Jan 18, 2018 11:04 pm
Looks like the admin fee is .15. Bringing the total to almost .69%. Still a good deal?
Yes
by David Jay
Thu Jan 18, 2018 7:50 pm
Forum: Investing - Help with Personal Investments
Topic: What will happen if everyone indexed?
Replies: 23
Views: 2266

Re: What will happen if everyone indexed?

... Indexing works well IFF (not if) efficient markets exist. Markets become efficient when many smart people analyse it. If no one analyzed, no one picked winners or losers, on a number of basis, markets would stop being efficient. Then indexing would'nt work . It may make no difference to the poi...
by David Jay
Thu Jan 18, 2018 7:29 pm
Forum: Investing - Help with Personal Investments
Topic: 457 worth it with these fees?
Replies: 47
Views: 1424

Re: Formula to determine if Pre-tax is worth Higher Fees

A 0.54 ER isn't terrible. Assuming no other hidden fees, it should be worth it. See: https://www.bogleheads.org/wiki/401%28k%29#Expensive_or_mediocre_choices How do you find those hidden fees? Your employer should have a document called "summary plan description" for your 457. Check with HR.
by David Jay
Thu Jan 18, 2018 4:55 pm
Forum: Investing - Help with Personal Investments
Topic: 457 worth it with these fees?
Replies: 47
Views: 1424

Re: Formula to determine if Pre-tax is worth Higher Fees

Please tell me if my calculation is in the ball park. I know it doesn't include compounding interest, etc. It's not that good, because eventually you do have to pay taxes. But if you save 22% now and are taxed at, say, 12% in retirement then it is a great deal. It is worth it even if it had to come...
by David Jay
Thu Jan 18, 2018 4:46 pm
Forum: Investing - Theory, News & General
Topic: $399 - New Course - Fire your Financial Advisor - By WhiteCoat Investor - Anyone?
Replies: 121
Views: 7193

Re: $399 - New Course - Fire your Financial Advisor - By WhiteCoat Investor - Anyone?

After seeing so many new Docs come here with a portfolio of NWM whole life and variable annuity plans, I think $399 to get them past that is a cheap alternative. I still love the WCI flowchart for "permanent insurance" at the bottom of this post: https://www.whitecoatinvestor.com/12-questions-to-ask...
by David Jay
Thu Jan 18, 2018 4:39 pm
Forum: Investing - Help with Personal Investments
Topic: Lets talk about some favorite index funds?
Replies: 32
Views: 1608

Re: Lets talk about some favorite index funds?

My three favorite index funds have become the favorite of most investors. They are now the three largest mutual funds in the world: Vanguard Total Stock Market Index Fund Vanguard Total International Index Fund Vanguard Total Bond Market Index Fund The Three-Fund Portfolio Best wishes. Taylor surrr...
by David Jay
Wed Jan 17, 2018 6:56 pm
Forum: Investing - Help with Personal Investments
Topic: Wellington or Target Retirement 2025
Replies: 9
Views: 825

Re: Wellington or Target Retirement 2025

To quote "neurosphere" (a regular poster here on BH): "If you wonder if a TargetDate fund is right for you, it is"
by David Jay
Wed Jan 17, 2018 5:50 pm
Forum: Personal Finance (Not Investing)
Topic: How to Analyze Sweet Spot on Insurance Deductibles - Challenging my Preconceived Notions
Replies: 25
Views: 1515

Re: How to Analyze Sweet Spot on Insurance Deductibles - Challenging my Preconceived Notions

On average, insurance companies are profitable. You are the amateur competing with professional actuaries.

I am heavily biased towards towards self-insure. I carry homeowners and I go to PLPD on vehicles when value drops below about $5000.
by David Jay
Wed Jan 17, 2018 1:42 pm
Forum: Investing - Theory, News & General
Topic: A question that keeps coming to my head
Replies: 13
Views: 1112

Re: A question that keeps coming to my head

#1 Clearly outperforms over the very long term (30+ years). Because stock outperforms bonds and bonds outperform non-returning assets. Portfolio #2 has 24% bonds and 11% non-returning assets. I am agnostic on whether real estate will under-perform stocks over the long term, but bonds and commodities...
by David Jay
Wed Jan 17, 2018 12:32 pm
Forum: Investing - Help with Personal Investments
Topic: Are we in an Index fund bubble? Are we irrationally overlooking individual stock analysis?
Replies: 18
Views: 2659

Re: Are we in an Index fund bubble? Are we irrationally overlooking individual stock analysis?

Your scenario will never happen. The reason has to do with just one word: GREED! Greed will ensure that someone or perhaps a bunch of someones continue to actively trade the market in hopes of a better or bigger score. We can point the finger at a whole host of players --> endowments, pensions, hed...
by David Jay
Wed Jan 17, 2018 12:26 pm
Forum: Investing - Help with Personal Investments
Topic: Question for Retired BH, over 59.5 with Roth Acct
Replies: 10
Views: 782

Re: Question for Retired BH, over 59.5 with Roth Acct

So far, it’s been watching Roth grow. We hope to leave it to our kids intact (D), but could tap it if needed. +1 Same here. We don't need any Roth money while 2 spouses are alive, the surviving spouse may need to dip into the Roth if there is extreme longevity (95+). Otherwise it all goes to the ki...
by David Jay
Tue Jan 16, 2018 11:16 pm
Forum: Investing - Help with Personal Investments
Topic: Long time investing with a Dalio type of long term strategy
Replies: 1
Views: 263

Re: Long time investing with a Dalio type of long term strategy

Welcome to the forum! It looks like you want a Dalio portfolio without the key features of the Dalio portfolio. I think what you want is closer to a Lazy portfolio than to a Dalio. I recommend you go through the Wiki review of Lazy Portfolios here: https://www.bogleheads.org/wiki/Lazy_portfolios On ...
by David Jay
Tue Jan 16, 2018 6:38 pm
Forum: Personal Finance (Not Investing)
Topic: retirement scenario [safety of IRA funds]
Replies: 18
Views: 1569

Re: retirement scenario [safety of IRA funds]

as far as inflation goes I was looking at vanguards life strategy conservative as was recommended to me. i actually like it. i will still have money in the stock market with my Roth IRA, Ameritrade and company 401k. when i decide to leave my job i will then roll the 401k into a roth-rollover ira Gr...
by David Jay
Tue Jan 16, 2018 1:30 pm
Forum: Personal Finance (Not Investing)
Topic: retirement scenario [safety of IRA funds]
Replies: 18
Views: 1569

Re: retirement scenario [safety of IRA funds]

total net worth as of today is $733k $248K is cash and $484k is investments (TSP, 401k roth ira, rollover ira, Ameritrade) of the 484k i want to move 380k of it to a safe place more for a guarantee for when i am 60. i plan on retiring at 53, i do not own a home. i will be moving over to Thailand at...
by David Jay
Mon Jan 15, 2018 2:40 pm
Forum: Personal Finance (Not Investing)
Topic: retirement scenario [safety of IRA funds]
Replies: 18
Views: 1569

Re: retirement scenario [safety of IRA funds]

Jim: The LifeStrategy funds include a family of different asset allocations. Because this is an IRA, you can move between funds without any tax issues. If the 80/20 (stocks/bonds) of LS Growth is worrying to you, you can move to LS Moderate (60/40) or LS Conservative (40/60). You get lower long-term...
by David Jay
Sat Jan 13, 2018 9:39 pm
Forum: Investing - Theory, News & General
Topic: It's trivial to outperform Vanguard Total Bond Index for 2018 with same risk!
Replies: 27
Views: 5390

Re: It's trivial to outperform Vanguard Total Bond Index for 2018 with same risk!

And in a parallel thread:

Vanguard only provides YTD increase on the website, not YTD percentage: viewtopic.php?p=3717792#p3717792 (with some gnashing of teeth by posters)
by David Jay
Sat Jan 13, 2018 7:00 pm
Forum: Personal Consumer Issues
Topic: Costco laminate flooring
Replies: 7
Views: 1281

Re: Costco laminate flooring

Vinyl plank has come a long way in recent years, I would strongly recommend vinyl plank over traditional laminate (and I have personally installed traditional laminate in 5 rooms of 2 different houses over the last 15-20 years).
by David Jay
Sat Jan 13, 2018 6:53 pm
Forum: Personal Finance (Not Investing)
Topic: Trustee vs POA
Replies: 27
Views: 1467

Re: Executor vs POA

Executor and POA are mutually exclusive. You can only have POA for someone who is living and you can only be executor for someone who is dead.
by David Jay
Sat Jan 13, 2018 5:58 pm
Forum: Investing - Theory, News & General
Topic: It's trivial to outperform Vanguard Total Bond Index for 2018 with same risk!
Replies: 27
Views: 5390

Re: It's trivial to outperform Vanguard Total Bond Index for 2018 with same risk!

YTD is a stupid way to measure performance. It starts out really stupid, then by the end of the year it's almost not stupid any more, and then it resets to being really stupid again. cute... And yet this thread has over 1700 posts: https://www.bogleheads.org/forum/viewtopic.php?t=145610 And most of...
by David Jay
Sat Jan 13, 2018 5:11 pm
Forum: Investing - Help with Personal Investments
Topic: Getting out of Whole Life Insurance
Replies: 15
Views: 1061

Re: Getting out of Whole Life Insurance

Take the cash out.

DO NOT convert one form of expensive life insurance to another form of expensive life insurance. Get out. Replace with low cost level term policies.
by David Jay
Sat Jan 13, 2018 3:58 pm
Forum: Investing - Help with Personal Investments
Topic: Capital Preservation after an 8 year bull market
Replies: 17
Views: 1968

Re: Capital Preservation after an 8 year bull market

obafgkm wrote:
Sat Jan 13, 2018 3:51 pm
David Jay wrote:
Sat Jan 13, 2018 11:37 am
Step 1 - put your $200,000 in short term bonds MONDAY.
Do it on Tuesday. Monday's a holiday - Martin Luther King, Jr. Day.
Duh - I share MLK's birthday...
by David Jay
Sat Jan 13, 2018 3:15 pm
Forum: Investing - Theory, News & General
Topic: It's trivial to outperform Vanguard Total Bond Index for 2018 with same risk!
Replies: 27
Views: 5390

Re: It's trivial to outperform Vanguard Total Bond Index for 2018 with same risk!

I'm really still not getting the point here even after reading this. Is this specific to bonds? How/why does YTD go down, then up again in a year? YTD on January 2 is a measure of the performance of the market on ONE day - January 2nd. So if the market is down 10%, YTD is -10%. How useful is this a...
by David Jay
Sat Jan 13, 2018 12:42 pm
Forum: Investing - Help with Personal Investments
Topic: What is the long term average nominal yield of the total bond market index fund ?
Replies: 27
Views: 1267

Re: What is the long term average nominal yield of the total bond market index fund ?

David Jay wrote:
Sat Jan 13, 2018 12:32 pm
Did you get the point that "dbr" made?

"Yield" is the interest that a bond fund pays.
"NAV" is the value of the bonds in the fund
"Return" = yield + (NAV increase)
So a drop in NAV reduces the total return to something less than interest paid.
by David Jay
Sat Jan 13, 2018 12:32 pm
Forum: Investing - Help with Personal Investments
Topic: What is the long term average nominal yield of the total bond market index fund ?
Replies: 27
Views: 1267

Re: What is the long term average nominal yield of the total bond market index fund ?

Did you get the point that "dbr" made?

"Yield" is the interest that a bond fund pays.
"NAV" is the value of the bonds in the fund
"Return" = yield + (NAV increase)
by David Jay
Sat Jan 13, 2018 12:24 pm
Forum: Investing - Help with Personal Investments
Topic: What is the long term average nominal yield of the total bond market index fund ?
Replies: 27
Views: 1267

Re: What is the long term average nominal yield of the total bond market index fund ?

1012: Let me introduce you to a great tool: Morningstar.com 1. Go to Morningstar.com 2. Type VBTLX in the search box 3. On the left side of the page is a chart that shows the gain of a 10,000 investment over time. Click on "5yr" at the top of the chart. 4. Total gain over 5 years is 10.2% (10,000 b...
by David Jay
Sat Jan 13, 2018 12:21 pm
Forum: Personal Finance (Not Investing)
Topic: AICPA GVUL possibly better than Term Life
Replies: 3
Views: 306

Re: AICPA GVUL possibly better than Term Life

You won't need a 25 year term policy if you put some of that money into a reasonable portfolio. And carrying the payout risk for a 65 year old is the reason for the high cost of the term. I dropped my last term policy in my mid-50s because my wife was fully taken care of from our retirement assets....
by David Jay
Sat Jan 13, 2018 11:48 am
Forum: Investing - Help with Personal Investments
Topic: Capital Preservation after an 8 year bull market
Replies: 17
Views: 1968

Re: Capital Preservation after an 8 year bull market

BTW - did you note that I said nothing about market timing due to an 8 year bull market? 1. Money you need in the next 2 years doesn't belong in equities. 2. Always invest according to your (written!) asset allocation plan. At the end of a bull market: re-read your written asset allocation plan. Aft...
by David Jay
Sat Jan 13, 2018 11:37 am
Forum: Investing - Help with Personal Investments
Topic: Capital Preservation after an 8 year bull market
Replies: 17
Views: 1968

Re: Capital Preservation after an 8 year bull market

Welcome to the Forum! Step 1 - put your $200,000 in short term bonds MONDAY. Step 2 - read up on asset allocation. I like the classic "Need, Ability and Willingness" formulation. You may need to move to something less than 100% stocks, even for long term investments. Don't overlook the BH Wiki - goo...
by David Jay
Sat Jan 13, 2018 10:45 am
Forum: Investing - Help with Personal Investments
Topic: Company 401K Fund Change
Replies: 9
Views: 544

Re: Company 401K Fund Change

You have so many great choices, I would "philosophically" refuse to use any fund with an ER over .5 when you have so many other great, low cost choices. So I would not hold either Fidelity Low Price or Transamerica Mid Cap Value from your first post. The 4 funds that "dunkmachine" mentioned above ar...
by David Jay
Sat Jan 13, 2018 10:10 am
Forum: Investing - Theory, News & General
Topic: It's trivial to outperform Vanguard Total Bond Index for 2018 with same risk!
Replies: 27
Views: 5390

Re: It's trivial to outperform Vanguard Total Bond Index for 2018 with same risk!

telemark wrote:
Sat Jan 13, 2018 10:07 am
YTD is a stupid way to measure performance. It starts out really stupid, then by the end of the year it's almost not stupid any more, and then it resets to being really stupid again.
cute...

And yet this thread has over 1700 posts: viewtopic.php?t=145610
by David Jay
Sat Jan 13, 2018 10:05 am
Forum: Investing - Help with Personal Investments
Topic: What is the long term average nominal yield of the total bond market index fund ?
Replies: 27
Views: 1267

Re: What is the long term average nominal yield of the total bond market index fund ?

1012: Let me introduce you to a great tool: Morningstar.com 1. Go to Morningstar.com 2. Type VBTLX in the search box 3. On the left side of the page is a chart that shows the gain of a 10,000 investment over time. Click on "5yr" at the top of the chart. 4. Total gain over 5 years is 10.2% (10,000 be...
by David Jay
Fri Jan 12, 2018 11:59 pm
Forum: Investing - Help with Personal Investments
Topic: Schwab help - mutual fund vs ETF vs ThomasPartners Balanced Income - overwhelmed!
Replies: 18
Views: 895

Re: Schwab help - mutual fund vs ETF vs ThomasPartners Balanced Income - overwhelmed!

A regular here ("Nisiprius") says of mutual funds versus ETFs: "It's the same beer. Mutual funds are beer in bottles, ETFs are beer in cans."
by David Jay
Fri Jan 12, 2018 11:51 pm
Forum: Personal Finance (Not Investing)
Topic: retirement scenario [safety of IRA funds]
Replies: 18
Views: 1569

Re: retirement scenario [safety of IRA funds]

Welcome to the Forum! A few thoughts: 1. Bond funds with durations less than your investment timeframe are reasonably safe. How about a short term, investment grade corporate bond fund. 2. You can purchase brokered CDs inside a Rollover IRA. 3. Even though you talk about "dumping stocks", the stock ...
by David Jay
Fri Jan 12, 2018 11:00 pm
Forum: Investing - Help with Personal Investments
Topic: Company 401K Fund Change
Replies: 9
Views: 544

Re: Company 401K Fund Change

While you are collecting the 401K information, here are the kind of portfolios that we recommend at BH: Simple portfolios using broad-based index funds (from the BH Wiki): https://www.bogleheads.org/wiki/Lazy_portfolios