Search found 14444 matches

by David Jay
Sat Mar 16, 2024 10:06 am
Forum: Investing - Theory, News & General
Topic: Should I Keep Sacrificing or Start Enjoying Myself
Replies: 32
Views: 3566

Re: Should I Keep Sacrificing or Start Enjoying Myself

What are your life goals?

If you are in a career that you love and wish to pursue as long as you have the desire / energy, start budgeting (note: spending is a budget item, not a “letting off the gas pedal”) more spending.

If your goal is early retirement then you need to evaluate your timeline and saving levels in light of the date you wish to retire.
by David Jay
Fri Mar 15, 2024 4:29 pm
Forum: Personal Finance (Not Investing)
Topic: Spousal social security
Replies: 16
Views: 1554

Re: Spousal social security

May I suggest that your spouse wait to claim until 68 years 4 months. That will increase your spouse’s benefit by 10 2/3 percent ($352 per month) and there will be no secondary deduction from spousal because you will be FRA.

Whether or not you claim your personal at age 62 is up to you. 60 months of payments isn’t chump change.
by David Jay
Fri Mar 15, 2024 4:23 pm
Forum: Personal Finance (Not Investing)
Topic: Inherited Stretch Annuity?
Replies: 14
Views: 1112

Re: Inherited Stretch Annuity?

bsteiner wrote: Thu Mar 14, 2024 7:50 pm You get the benefit of deferral at the cost of turning the income and gains into ordinary income aand giving up the basis step-up at death and incurring the expenses.
This suggests to me that it probably shouldn’t be used if one expects to be below the estate inheritance exemption amount. Below the exemption amount the heirs get “step-up” basis so they pay no tax on the account gains prior to death.
by David Jay
Fri Mar 15, 2024 4:16 pm
Forum: Personal Finance (Not Investing)
Topic: Getting ready to leave Northwestern Mutual annuity, but what about Insurance?
Replies: 9
Views: 1004

Re: Getting ready to leave Northwestern Mutual annuity, but what about Insurance?

Investomatic3000 wrote: Fri Mar 15, 2024 4:09 pmWhen it comes time to move the $ out of the annuity I'm going to have the receiving firm do the work.
Likely you will need to be the one to surrender the annuity (I doubt that Fid/VG will be allowed to surrender an annuity). That will put the cash in a NWM account.

Then use the receiving firm to transfer the cash out of NWM to the new custodian.
by David Jay
Fri Mar 15, 2024 12:55 pm
Forum: Investing - Theory, News & General
Topic: Great news! No more [fixed real estate] agent commission
Replies: 163
Views: 15077

Re: Great news! No more agent commission

rgs92 wrote: Fri Mar 15, 2024 12:42 pmMaybe it's a job for AI...
Lord help us - NO

(at least not an LLM, there are other forms of AI)
by David Jay
Fri Mar 15, 2024 10:12 am
Forum: Personal Finance (Not Investing)
Topic: Spousal social security
Replies: 16
Views: 1554

Re: Spousal social security

It still often makes sense to receive those years of payments prior to your spouse claiming, my spouse claimed @ 62 and I am deferring for a larger survivor's benefit. To follow up on this thought, your benefit will be the first one to end regardless of which spouse passes first. The survivor's benefit will be the $3300 if your spouse claims at full retirement age (FRA). If he waits to claim until after FRA then he will receive a larger benefit and that benefit will still be the survivor's benefit. As we looked at this, we thought that receiving the small (similar size to yours) benefit for 7 years (in our case) was a way to get some cash flow and the lower earner filing early does not affect the size of the survivor's benefit. My primary ...
by David Jay
Fri Mar 15, 2024 9:52 am
Forum: Personal Finance (Not Investing)
Topic: Spousal social security
Replies: 16
Views: 1554

Re: Spousal social security

Filing early for your personal benefit will permanently reduce your total benefit. It is nominally dollar-for-dollar because spousal is calculated as follows: (spouses full retirement benefit [PIA] divided by two) minus your full retirement benefit [PIA]. This amount is added to your personal benefit. If your personal benefit is less than your full retirement benefit due to filing early then your total benefit is smaller than if you had waited to your full retirement age to claim. It still often makes sense to receive those years of payments prior to your spouse claiming, my spouse claimed @ 62 and I am deferring for a larger survivor's benefit. Edit: Note, there is also a reduction for claiming spousal before your full retirement age, I do...
by David Jay
Fri Mar 15, 2024 9:39 am
Forum: Personal Investments
Topic: Two Vanguard Target 2040 funds
Replies: 6
Views: 635

Re: Two Vanguard Target 2040 funds

Welcome to the forum!

Note the names on your two links: one is "investor" and the other is "institutional". The institutional version of TR2040 is only available in an employer plan. It is not a mutual fund but an investment trust (good in a 401K) which is why it has no ticker.
by David Jay
Fri Mar 15, 2024 7:52 am
Forum: Personal Investments
Topic: Create traditional or rollover IRA at Fidelity when transfering a rollover IRA?
Replies: 5
Views: 520

Re: Create traditional or rollover IRA at Fidelity when transfering a rollover IRA?

The two accounts are both traditional IRA accounts. The naming conventions refer to the content of the accounts, not the nature of the accounts.

Rollover accounts hold funds whose origin is typically an employer account, it is an attempt to segregate those assets from personal contributions. Since the origin of this money is a 401K I agree with your choice.
by David Jay
Thu Mar 14, 2024 4:35 pm
Forum: Personal Investments
Topic: Transfer In-Kind experience question
Replies: 1
Views: 357

Re: Transfer In-Kind experience question

First off, if you are leaving Wells Fargo then you should be working with the brokerage that is receiving the assets. They have the incentive to make sure the transaction goes smoothly.

If the transfer is "in-kind" then you are never out of the market so why does it matter if it takes 24 hours or two weeks? I have never dealt with Wells Fargo but my experience with other brokerage houses is typically 3-5 business days.
by David Jay
Thu Mar 14, 2024 9:31 am
Forum: Personal Investments
Topic: Quick Trad IRA Question
Replies: 2
Views: 255

Re: Quick Trad IRA Question

Here is a good IRS chart of the income limits for various situations:

https://www.irs.gov/retirement-plans/20 ... an-at-work
by David Jay
Thu Mar 14, 2024 7:50 am
Forum: Personal Finance (Not Investing)
Topic: Help for sister on social security during assisted living spend down
Replies: 13
Views: 2056

Re: Help for sister on social security during assisted living spend down

mb wrote: Thu Mar 14, 2024 7:34 am My brother and I supplemented my mother’s income while she was in assisted living. As instructed by an elder care attorney, none of our contributions could ever go through any of her accounts. We paid a portion of her expenses directly to the assisted care facility. Eventually she needed to go on Medicaid. We had no problems with the Medicaid application and she received her benefit without any problems.
This.
by David Jay
Thu Mar 14, 2024 7:26 am
Forum: Personal Finance (Not Investing)
Topic: Medicare premium credit card auto-pay??
Replies: 5
Views: 1058

Re: Medicare premium credit card auto-pay??

whomever wrote: Wed Mar 13, 2024 4:56 pm(perhaps one option is to have medicare auto-deduct from a bank account, and have VEBA auto-reimburse the account, but that seems clunkier than just having medicare ding the card)
One doesn't have to reimburse every month.

I reimburse our checking account from my HSA every 3 months, but you could do it every 6 or 12 months to simplify your life.
by David Jay
Tue Mar 12, 2024 1:22 pm
Forum: Personal Finance (Not Investing)
Topic: Disqualifying Disposition and ESPP.
Replies: 2
Views: 2864

Re: Disqualifying Disposition and ESPP.

Original post is over 15 years old…
by David Jay
Tue Mar 12, 2024 12:22 pm
Forum: Investing - Theory, News & General
Topic: Previously taxed reinvested Dividends reduce Capital
Replies: 14
Views: 1164

Re: Ed Slott's Feb 29 comments regarding dividend reinvestment and... cost basis?

mangorunner wrote: Tue Mar 12, 2024 12:20 pmIs the tax advice to simply track your cost basis - and include all dividend reinvestments - in a taxable account?
Yes.
by David Jay
Mon Mar 11, 2024 5:59 pm
Forum: Personal Finance (Not Investing)
Topic: When claiming SS with a young family would this reduce taxes?
Replies: 10
Views: 831

Re: When claiming SS with a young family would this reduce taxes?

What benefits - specifically - do you believe your kids will receive because you file for Social Security at age 62?
by David Jay
Mon Mar 11, 2024 5:57 pm
Forum: Personal Investments
Topic: SS is insufficient, very little savings, what's the best option
Replies: 49
Views: 7794

Re: SS is insufficient, very little savings, what's the best option

stevem54 wrote: Mon Mar 11, 2024 4:56 pm...owns an above-average home, not paid off yet...
There's my red flag, right there. They probably need a below-average home that is paid for to meet their budget constraints.
by David Jay
Sun Mar 10, 2024 3:36 pm
Forum: Personal Investments
Topic: 401K vs Roth IRA
Replies: 17
Views: 1525

Re: 401K vs Roth IRA

If you are very early in your career and in a relatively low tax bracket then Roth may be a good option. For most of one’s working lifetime tax deferred is superior as early retirement tax rates may be lower than when working.
by David Jay
Sun Mar 10, 2024 3:34 pm
Forum: Personal Investments
Topic: 401K vs Roth IRA
Replies: 17
Views: 1525

Re: 401K vs Roth IRA

Your math is correct assuming the same marginal tax rate at time of contribution and time of distribution. This is due to the commutative principle of multiplication - the order doesn’t matter.

Here is an example, starting with $10,000 in wages, 24% tax rate (x .76), 700% lifetime growth (x 7):

Roth: (10,000 x .76) x 7 = $53,200
401K: (10,000 x 7) x .76 = $53,200
by David Jay
Sun Mar 10, 2024 2:34 pm
Forum: Personal Investments
Topic: New Boglehead\Newly Retired
Replies: 4
Views: 651

Re: New Boglehead\Newly Retired

Welcome to the forum! You have 3 years to research it, but let me discuss your #3 and #4: The key to SS claiming strategy for married couples is the rubric of survivor’s benefits. The amount of the survivor’s benefit is equal to the greater of the two individual benefits, the smaller of the two benefits in effect “goes away” when the first spouse passes. This means the financial evaluation of the high earner is based on “second to pass” and the financial evaluation of the lower earner is based on “first to pass”. What this means is the real world is that under most circumstances is for the high earner to defer as you are doing. However, since the low earner benefit has a shorter duration most SS calculators will suggest that the lower earne...
by David Jay
Sat Mar 09, 2024 6:02 pm
Forum: Personal Finance (Not Investing)
Topic: QCDs before age 73?
Replies: 30
Views: 2440

Re: QCDs before age 73?

Artsdoctor wrote: Sat Mar 09, 2024 5:01 pm ^ I agree with jebmke.

Maybe the 1040 is etched into my brain right now since it's tax season. But I'm trying to follow the previous statement suggesting that a QCD affect your AGI. It really doesn't.

Most people do not itemize nowadays because the standard deduction is so high but if you do, you'd be itemizing on Schedule A and taking your charitable contributions there. That deduction doesn't affect your AGI either (your AGI is the same whether you itemize or not).
MAGI (used to calculate IRMAA), not AGI. See my edit above, the benefit only occurs when tIRA funds are withdrawn to make the contribution.
by David Jay
Sat Mar 09, 2024 4:48 pm
Forum: Personal Finance (Not Investing)
Topic: QCDs before age 73?
Replies: 30
Views: 2440

Re: QCDs before age 73?

Are you on Medicare? are you paying, or at risk of paying IRMAA? QCDs reduce your MAGI whereas deductions do not. Not until you are drawing RMDs; QCDs have no impact on MAGI before then. When withdrawing from tax deferred retirement accounts, QCDs get deducted from your taxable income on page 1 of the 1040, so they do have an impact on MAGI even before you reach the RMD age. Can you clarify what you mean here? QCDs are not part of your adjusted gross income at all, so what would they be reducing prior to RMD age? I'm not kcolman or GenawithanE, but I believe this is is the thinking: 1. Assuming that one is making a charitable contribution [edit] with tIRA funds regardless of method (if not, then there is no benefit) 2. Using a QCD after 70...
by David Jay
Sat Mar 09, 2024 4:40 pm
Forum: Investing - Theory, News & General
Topic: "When" do you sell equities during Retirement?
Replies: 29
Views: 4404

Re: "When" do you sell equities during Retirement?

I sell what I need for expenses, typically twice a year. I decide what to sell to return my Asset Allocation (AA) to my target AA.

This automatically solves the "when to sell" dilemma, which helps with behavioral errors. When stocks are down I am naturally overweighted in bonds, so I sell (more) bonds. When stocks are up I am overweighted in stocks so I sell more stocks. In a flat market I sell nominally a proportional amount of each.
by David Jay
Sat Mar 02, 2024 4:37 pm
Forum: Investing - Theory, News & General
Topic: Why is 60/40 the benchmark?
Replies: 25
Views: 3364

Re: Why is 60/40 the benchmark

Lastrun wrote: Sat Mar 02, 2024 2:30 pm
gavinsiu wrote: Sat Mar 02, 2024 2:01 pm I recall when Bernstein demonstrated the efficient frontier, it shown that 60/40 as the efficient point of the efficient frontier where return and stdev balance.
Bill or Peter?

Here is an old article of inerest: https://www.safalniveshak.com/wp-conte ... Y2fQ%3D%3D
If I had to pick one key person for the popularization of 60/40 it would be Peter Bernstein, article in the link above.
by David Jay
Sat Mar 02, 2024 4:31 pm
Forum: Personal Finance (Not Investing)
Topic: Open Social Security Question: When It Says to Take Benefits
Replies: 22
Views: 2373

Re: Open Social Security Question: When It Says to Take Benefits

It would be a lot easier decision if the expiration date was printed on the container… :wink:
by David Jay
Sat Mar 02, 2024 1:42 pm
Forum: Personal Finance (Not Investing)
Topic: Open Social Security Question: When It Says to Take Benefits
Replies: 22
Views: 2373

Re: Open Social Security Question: When It Says to Take Benefits

For singles, Social Security is almost actuarially neutral on claiming date with average life expectancies. You can get a smaller amount for more months or a larger amount for fewer months.

(It is more finite for married couples because of the way survivor’s benefits are determined)
by David Jay
Sat Mar 02, 2024 10:56 am
Forum: Personal Investments
Topic: How to Get Roth IRA Out of Wells Fargo Advisors
Replies: 19
Views: 1963

Re: How to Get Roth IRA Out of Wells Fargo Advisors

And “yes”, in this day and age a 1.95% Expense Ratio is absurd. This fund has a 1% 12b-1 fee, so they are paying a 1% “kickback” to your advisor every year.

Even if you wanted to be 100% in technology stocks you can get a similar, actively managed fund for perhaps a quarter the price. And a technology index fund would cost a tiny fraction of that amount.
by David Jay
Sat Mar 02, 2024 10:54 am
Forum: Personal Investments
Topic: How to Get Roth IRA Out of Wells Fargo Advisors
Replies: 19
Views: 1963

Re: How to Get Roth IRA Out of Wells Fargo Advisors

You can easily move the IRA to another custodian. The recommended process is to work with the custodian receiving the IRA, as they have the incentive to make sure things go smoothly.

Low cost, full service brokerages often mentioned here on BH are Fidelity, Schwab and Vanguard (alphabetical order)
by David Jay
Thu Feb 22, 2024 7:45 am
Forum: Personal Investments
Topic: Has anyone invested in marijuana stocks?
Replies: 92
Views: 12495

Re: Has anyone invested in marijuana stocks?

Many states were okay with legalization because they were looking at tax revenue. In a number of states the illegal growers are putting pricing pressure on the legal growers because the illegal growers do not have that tax burden.
by David Jay
Sat Feb 17, 2024 5:04 pm
Forum: Personal Investments
Topic: Is it Too Late to Invest in VTI?
Replies: 126
Views: 19038

Re: Is it Too Late to Invest in VTI?

sink wrote: Sat Feb 17, 2024 3:57 pmVTI is 12% made up of two stocks - Apple and MS. Just 2 stocks. It is 31% technology. That is not "the market".
Actually, that is, by definition, the US stock market. Apple and Microsoft represent 12% of market capitalization. Tech represents 31% of market capitalization.

You can choose not to like the composition of the market, but it is still the market regardless of your preferences.
by David Jay
Thu Feb 15, 2024 8:37 am
Forum: Investing - Theory, News & General
Topic: Any studies to refute dividend yield & chill?
Replies: 161
Views: 12104

Re: Any studies to refute dividend yield & chill?

nisiprius wrote: Thu Feb 15, 2024 8:16 amSo I take for granted that dividends are not free money, dividend stocks are not Just Plain Better than average, that spending dividends is no different from withdrawing the same amount of capital... and that "spend the dividends" doesn't look like a good automatic withdrawal rule.
….but other than that, how was the play Mrs. Lincoln?
by David Jay
Fri Feb 09, 2024 10:08 am
Forum: Personal Investments
Topic: Second to die Insurance
Replies: 17
Views: 1452

Re: Second to die Insurance

Chardo wrote: Fri Feb 09, 2024 10:00 am Meanwhile, you may be better off with universal life anyway. For even lower premium, you could buy a $9M policy and have all that coverage from day 1.
But the NYL rep makes less…
by David Jay
Sat Feb 03, 2024 4:23 pm
Forum: Personal Finance (Not Investing)
Topic: Wire Fraud in Real Estate Transaction - What Next?
Replies: 122
Views: 14290

Re: Wire Fraud in Real Estate Transaction - What Next?

Retired IMH wrote: Sat Feb 03, 2024 4:01 pm I would add one simple piece of advice that you have hopefully already been practicing, which is to take contemporaneous notes on every interaction related to this incident. Especially any in-person meetings or phone calls. As soon as the call or meeting ends, write what happened down with the date and time. Keep everything in a binder of some sort until you are made 100% whole.
And if you are in a "one-party" state, I would record every interaction.
by David Jay
Sat Feb 03, 2024 4:00 pm
Forum: Personal Investments
Topic: Help With Explaining These 2 Funds
Replies: 15
Views: 1043

Re: Help With Explaining These 2 Funds

LaramieWind wrote: Sat Feb 03, 2024 2:40 pm The person who asked the question to me believes in dividends. I could not explain if or why VDE was better.
Simple: "Return of Capital"

A portion of the SOAEX dividend is returning the investor's own money back to them. Like an annuity payout (which is typically much higher than prevailing interest rates).
by David Jay
Fri Feb 02, 2024 8:44 am
Forum: Investing - Theory, News & General
Topic: Echoes of Dot Com Bubble?
Replies: 230
Views: 23995

Re: Echoes of Dot Com Bubble?

Until I start seeing the words "burn rate" in IPO filings, I will not believe that today is anything like the Dot Com bubble.
by David Jay
Wed Jan 31, 2024 9:00 am
Forum: Personal Finance (Not Investing)
Topic: think I tossed Corebridge/VALIC 1099R
Replies: 6
Views: 557

Re: think I tossed Corebridge/VALIC 1099R

I bet he can quickly download one from the Corebridge website
by David Jay
Tue Jan 30, 2024 3:26 pm
Forum: Investing - Theory, News & General
Topic: The number one reason why investors fail
Replies: 94
Views: 15827

Re: The number one reason why investors fail

Tycoon wrote: Sun Jan 28, 2024 10:45 am Emotions are why many people fail at many things!
+1

I have come around to the conclusion that successful investing is about 85% behavioral, with just a smidgeon of fund selection.

See my signature line quote from Hersh Shefrin.
by David Jay
Tue Jan 23, 2024 2:48 pm
Forum: Personal Finance (Not Investing)
Topic: I don’t think I’m going to worry about RMDs. Terrible decision?
Replies: 39
Views: 4150

Re: I don’t think I’m going to worry about RMDs. Terrible decision?

I would come back and take a careful look in your late 50s, while you still have a few years before filing for SS benefits. You may want to make some additional Roth conversions before SS begins (to avoid high IRMAA surcharges).

Don't even think about it for the next 10 years.
by David Jay
Fri Jan 19, 2024 11:11 am
Forum: Investing - Theory, News & General
Topic: Robinhood 3% IRA Match
Replies: 1459
Views: 110247

Re: 3% IRA transfer bonus at Robinhood: Worth it?

IF my IRA was composed of ETFs and IF I didn’t care that my money would be stuck at a fintech for 5 years then I would consider it.

[neither is true for me so the offer is a “no-go” in my case]
by David Jay
Mon Jan 08, 2024 5:53 pm
Forum: Personal Finance (Not Investing)
Topic: IRA rollover to 401(k) and Pro-Rata Rule for Backdoor Roth
Replies: 8
Views: 730

Re: IRA rollover to 401(k) and Pro-Rata Rule for Backdoor Roth

Obscure2741 wrote: Mon Jan 08, 2024 5:39 pmBased on this, can I make the 2023 IRA Contribution max of $6,500 before April 15, 2024, the 2024 IRA Contribution max of $7,000, and convert both to a Roth account in 2024? (and report on my form 8606 for 2024) Or can I only do one Roth conversion per calendar year?
There is no limit on the number or the size of Roth conversions.

I’m retired but have not yet filed for SS benefits. I typically make two Roth conversions per year: a large one early in the year and a smaller one late in the year when I know exactly how much “headroom” I have in the tax bracket I’m attempting to fill.
by David Jay
Sat Jan 06, 2024 6:04 pm
Forum: Personal Investments
Topic: Where to [put] this money? [100K after tax, conservative, delay taxes]
Replies: 16
Views: 1666

Re: Where to out this money?

GreendaleCC wrote: Sat Jan 06, 2024 2:43 pm
Johm221122 wrote: Sat Jan 06, 2024 12:50 pm Multi-year guaranteed annuity?
If not muni bonds, this seems like a worthwhile option to explore, depending on how much faith you have in insurance companies.

Canvas 7-year MYGA at 6.3%
Gainbridge 8, 9, 10-year MYGAs at 5.65%
But don't do this if you will be younger than 59.5 when you intend to access the money!
by David Jay
Fri Jan 05, 2024 2:20 pm
Forum: Personal Finance (Not Investing)
Topic: Our Open Social Security strategy has radically changed. Why?
Replies: 8
Views: 1691

Re: Our Open Social Security strategy has radically changed. Why?

Expro wrote: Wed Jan 03, 2024 1:31 pmBut overall, changes in claiming strategies will generally result is similar outcomes so claiming today vs in three years won't ruin my long term SS monies.

Correct?
I'm not certain what you are asking, but opensocialsecurity attempts to give you the maximum total benefit over your lifetime (or 2 lifetimes if married). It does not optimize for the "long-term". Your long-term SS monies are almost always maximized when the higher earning spouse delays to age 70 (large differences in the age of spouses can change this calculation).
by David Jay
Fri Jan 05, 2024 9:14 am
Forum: Personal Consumer Issues
Topic: What underflooring for laminate on a pitted concrete floor
Replies: 8
Views: 1331

Re: What underflooring for laminate on a pitted concrete floor

I agree with others, 1/2” cork sounds like a really bad idea.
by David Jay
Fri Jan 05, 2024 8:44 am
Forum: Personal Finance (Not Investing)
Topic: Doing QCDs before RMDs?
Replies: 19
Views: 2035

Re: Doing QCDs before RMDs?

I am planning a large one-time gift to a favorite charity via QCD six months after my 70th birthday. Two reasons:
1. I can afford it
2. It sets me up for keeping future RMDs in line with my historic charitable giving pattern while allowing for [small] Roth conversions each year in the 0% tax bracket.
by David Jay
Thu Jan 04, 2024 6:32 pm
Forum: Personal Investments
Topic: Portfolio Review Please!
Replies: 20
Views: 2582

Re: Portfolio Review Please!

I don't want to go too far down this rabbit trail, I remember that I was once new to broad-based index investing. The issue is believing that the market is "wrong" and that I know better. There are tens of thousands of Wall Street professionals who spend every working minute looking for exploitable mis-pricing opportunities. I had to absorb the understanding (and it took a while, I thought I was a great stock picker...) that I did not have any exploitable specialized knowledge that would allow me to out-perform the professionals over time. I want to highlight, again, that I'm not "stock picking." I think that is a poor characterization. SCHD is a passive index fund. I'm not actively managing a portfolio of individual st...
by David Jay
Thu Jan 04, 2024 4:27 pm
Forum: Personal Investments
Topic: Portfolio Review Please!
Replies: 20
Views: 2582

Re: Portfolio Review Please!

The Top 10 SP500 stocks over the last 40 years have almost always accounted for 25% - 30% of the SP500 market cap, so the current makeup is not an uncommon weighting. Sure, but how often have they been companies in the same sector, driven by AI hype? And you don't agree that growth tech stocks have been overvalued with inflated stock prices? (I don't mean their market cap here, but relative to their intrinsic value.) I may have been conflating these two thoughts a bit: the over-dominance of tech and the fact that the major players (save Apple) have used buybacks, etc. to drive their prices to the moon. I find it hard to believe there won't be some sort of reckoning. My intention isn't to let that structure my entire portfolio allocation or...
by David Jay
Thu Jan 04, 2024 12:47 pm
Forum: Personal Investments
Topic: Portfolio Review Please!
Replies: 20
Views: 2582

Re: Portfolio Review Please!

laughmyassetsoff wrote: Wed Jan 03, 2024 9:09 pmRather, I'm observing that the current total market is heavily weighted in one sector...
And I remarked that chasing sector performance will pretty much assure an underperforming portfolio. Nisiprius has had several posts on the performance of "smart beta" funds, and why nobody is talking about them anymore:

search.php?keywords=smart+beta&terms=al ... mit=Search

The Top 10 SP500 stocks over the last 40 years have almost always accounted for 25% - 30% of the SP500 market cap, so the current makeup is not an uncommon weighting.
by David Jay
Wed Jan 03, 2024 8:41 pm
Forum: Personal Investments
Topic: Portfolio Review Please!
Replies: 20
Views: 2582

Re: Portfolio Review Please!

Welcome to the forum! I also know no one has a crystal ball. That said , I'd like to be well-diversified enough to deal with what may be coming, given that I feel like much of the US market is currently overvalued, being centered in the magnificent 7 and tech sector. That has inspired: - the small cap tilt with AVUV and also SCHD in the taxable. I know a dividend fund in the taxable isn't the most tax efficient thing, but this is also money that I hope to use sooner than retirement One of the things you will hear repeatedly is that it is highly unlikely that you actually know what the market will do in advance. Therefore trying to "pick-and-choose" is nearly always a bad idea. We teach that one should set an asset allocation that ...
by David Jay
Wed Jan 03, 2024 3:24 pm
Forum: Personal Finance (Not Investing)
Topic: Need HELP with money order
Replies: 15
Views: 1252

Re: Need HELP with money order

Ask the person at Walmart who sold it where it can be cashed?
by David Jay
Wed Jan 03, 2024 3:10 pm
Forum: Personal Investments
Topic: tIRA and SEP to rIRA conversion and changing income sources and the pro rata rule
Replies: 8
Views: 771

Re: tIRA and SEP to rIRA conversion and changing income sources and the pro rata rule

lairdb wrote: Wed Jan 03, 2024 11:36 amAh, I was afraid of that. So, assuming MAGI comes in above the phaseout, I can either,
  • not rollover, and then am free to backdoor rIRA,
  • rollover 401k to tIRA, no backdoor, and do some tIRA to rIRA conversion,
  • rollover 401k to tIRA, also backdoor, and deal with pro rata,
  • (do nothing.)
If it's me, I leave it in the 401K for one more year. and each of you do a 2024 backdoor Roth process.