Search found 3762 matches

by David Jay
Sat Sep 23, 2017 8:51 pm
Forum: Personal Finance (Not Investing)
Topic: When does whole life make sense ?
Replies: 6
Views: 305

Re: When does whole life make sense ?

1. Two possible reasons that could make sense: a. You expect your combined (you + spouse) estate to exceed 10 million. It may be possible to reduce estate taxes by moving some of your assets into a Whole Life policy b. You have dependents who will need to be taken care of in your absence (think: dev...
by David Jay
Sat Sep 23, 2017 8:07 pm
Forum: Investing - Theory, News & General
Topic: The real impacts of passive investing
Replies: 2
Views: 390

Re: The real impacts of passive investing

The majority of all trading is HFT - rapid trading based on math algorithms and executed by computers. Only a tiny percentage of trading is for personal accounts.
by David Jay
Sat Sep 23, 2017 1:31 pm
Forum: Investing - Help with Personal Investments
Topic: Portfolio Review Request - first time posting
Replies: 4
Views: 356

Re: Portfolio Review Request - first time posting

There is an "asset allocation for 50-somethings" discussion going on right now on this thread: viewtopic.php?p=3543547
by David Jay
Sat Sep 23, 2017 1:26 pm
Forum: Investing - Help with Personal Investments
Topic: Portfolio Review Request - first time posting
Replies: 4
Views: 356

Re: Portfolio Review Request - first time posting

Regarding #3 and #4: Bogleheads typically consider the Asset Allocation between stocks and bonds to be the way to control "safety". We use broad "total market" funds as the basis for our stock investments with smaller holdings to "tilt" if desired. We use bond funds of intermediate term or less beca...
by David Jay
Sat Sep 23, 2017 8:41 am
Forum: Investing - Help with Personal Investments
Topic: Question re passive income
Replies: 5
Views: 560

Re: Question re passive income

Don't business expenses include the personal deductions (mortgage interest/property tax) for the home and more? Different part of the tax form. Can affect many phase-outs and such. Capital gains are due if he sells the home after renting for length of time (he will lose the primary residence exempt...
by David Jay
Fri Sep 22, 2017 10:16 pm
Forum: Investing - Help with Personal Investments
Topic: Portfolio Review Request - first time posting
Replies: 4
Views: 356

Re: Portfolio Review Request - first time posting

#1 - I would keep 401K funds in a 401K until age 59.5 as there are some advantages if you want/need to access those funds early. The Voya expenses (if I am right on the decimal point) are reasonable but you could simplify your accounts by rolling over to your current employer if your employer plan a...
by David Jay
Fri Sep 22, 2017 9:58 pm
Forum: Investing - Help with Personal Investments
Topic: Portfolio Review Request - first time posting
Replies: 4
Views: 356

Re: Portfolio Review Request - first time posting

Hi Aggie, welcome to the forum. Your information is a little bit confusing, you say high 5 figures (I.e. 80,000 - 90,000) but you mention $100,000 in cash and $100,000 IRA so you clearly have well more than that. Did you mean six figures? You list a lot of mutual fund tickers (5 character names). Tw...
by David Jay
Fri Sep 22, 2017 8:55 pm
Forum: Investing - Help with Personal Investments
Topic: Question re passive income
Replies: 5
Views: 560

Re: Question re passive income

When you say deductions, do you mean business expenses?

No personal deductions, the home is no longer your primary residence. It is now income property.
by David Jay
Fri Sep 22, 2017 4:48 pm
Forum: Investing - Theory, News & General
Topic: No More Saving???
Replies: 105
Views: 5724

Re: No More Saving???

I stopped contributing to my 401K at age 59 to focus on completely paying off my mortgage prior to an anticipated retirement at age 62. Paying down your mortgage is just a different form of retirement savings. :beer Not to freak anybody out, but I am also withdrawing money from my (rollover) tIRA t...
by David Jay
Fri Sep 22, 2017 11:41 am
Forum: Investing - Theory, News & General
Topic: Oil - Price & Supply/Demand Conundrum
Replies: 56
Views: 2633

Re: Oil - Price & Supply/Demand Conundrum

DanMahowny wrote:
Fri Sep 22, 2017 11:19 am
Personally, I believe oil/oil services will outperform any industry over the next ten years.
Everybody needs something they can believe in...
by David Jay
Thu Sep 21, 2017 9:10 pm
Forum: Investing - Theory, News & General
Topic: No More Saving???
Replies: 105
Views: 5724

Re: No More Saving???

ebrasmus21 wrote:
Thu Sep 21, 2017 8:56 pm
David Jay wrote:
Thu Sep 21, 2017 8:25 pm
I stopped contributing to my 401K at age 59 to focus on completely paying off my mortgage prior to an anticipated retirement at age 62.
So, you're almost there!
Yup, about a year and a half. Still have a $41,000 mortgage balance...
by David Jay
Thu Sep 21, 2017 8:25 pm
Forum: Investing - Theory, News & General
Topic: No More Saving???
Replies: 105
Views: 5724

Re: No More Saving???

I stopped contributing to my 401K at age 59 to focus on completely paying off my mortgage prior to an anticipated retirement at age 62.
by David Jay
Sat Sep 16, 2017 9:06 pm
Forum: Investing - Help with Personal Investments
Topic: Best Bank/Credit Union/Financial Company current CD Rates? Or Annuities?
Replies: 2
Views: 444

Re: Best Bank/Credit Union/Financial Company current CD Rates? Or Annuities?

Are you in the accumulation phase of your life? If so, don't go anywhere near an annuity.

As a way to provide longevity insurance in retirement, an SPIA can make sense for some people. But if you are putting it along side CD rates then I suspect this is not your situation.
by David Jay
Fri Sep 15, 2017 10:23 pm
Forum: Personal Finance (Not Investing)
Topic: SS Spouse Benefit
Replies: 10
Views: 1629

Re: SS Spouse Benefit

OP is correct.

Another way to say the same thing is that the dollar reduction from claiming early is carried through when claiming a spousal benefit.

The smaller the Primary benefit, the smaller the reduction in total benefit (primary + spousal) from claiming early.
by David Jay
Thu Sep 14, 2017 7:57 pm
Forum: Personal Finance (Not Investing)
Topic: Help with savings
Replies: 3
Views: 522

Re: Help with savings

I like the idea of making some capital payments on the mortgage to reduce the term. Your first few years you pay almost nothing on principle (seriously, look at the amortization schedule on a 30 year loan). Putting a few thousand on the loan in the first couple of years may knock 2 or 3 years off th...
by David Jay
Thu Sep 14, 2017 7:43 pm
Forum: Personal Finance (Not Investing)
Topic: SS Deemed filing eligibility
Replies: 10
Views: 1021

Re: SS Deemed filing eligibility

My wife's benefit right now is 1685 and in January it will increase. I do not know how often the SS website updates the benefit information, but the amount of your wife's benefit increases 8/12 of 1% EVERY MONTH that she delays taking her benefit. I suspect that the SS website is estimating in long...
by David Jay
Wed Sep 13, 2017 3:09 pm
Forum: Investing - Theory, News & General
Topic: What special investments, if any, do CFPs have access to?
Replies: 11
Views: 828

Re: What special investments, if any, do CFPs have access to?

nisiprius wrote:
Wed Sep 13, 2017 12:34 pm
Another category of "advisor only" products are non-traded REITs. These are famously problematical investments that are attractive to advisors because they pay high commissions.
Love your phrasing
by David Jay
Wed Sep 13, 2017 10:10 am
Forum: Investing - Theory, News & General
Topic: Market timing using Gold-Lumber indicator
Replies: 24
Views: 2053

Re: Market timing using Gold-Lumber indicator

Across the US economy and population, increased spending on admission to professional sporting events is was strongly and inversely correlated with per capita consumption of high-fructose corn syrup. PJW Lauretta: This may seem like a joke but it is a very important basic statistics lesson: Correla...
by David Jay
Wed Sep 13, 2017 10:04 am
Forum: Personal Consumer Issues
Topic: Best Lower Cost USA Cities to Live
Replies: 102
Views: 7084

Re: Best Lower Cost USA Cities to Live

Mr.BB wrote:
Wed Sep 13, 2017 9:19 am
I guess it can like the stock market. The minute the word gets out of a hot place people start going there and the attributes that made it special disappear.
Reminds me of the Yogi Berra line about a NYC restaurant: "Nobody goes there anymore, it's too crowded"
by David Jay
Tue Sep 12, 2017 8:42 pm
Forum: Investing - Help with Personal Investments
Topic: Investment advice for 58 year old.
Replies: 23
Views: 1830

Re: Investment advice for 58 year old.

To get a feel for Bogleheads (and so we don't talk past each other), here is a link to the BH Wiki for the "Startup Kit":
https://www.bogleheads.org/wiki/Boglehe ... art-up_kit
by David Jay
Tue Sep 12, 2017 8:37 pm
Forum: Investing - Help with Personal Investments
Topic: Investment advice for 58 year old.
Replies: 23
Views: 1830

Re: Investment advice for 58 year old.

Welcome to the forum. We don't know anything about your living expenses your retirement and after your wife's retirement. If the two of you can live on $175,000 a year or so then you can leave it all in cash and you will be fine. Drop it all in TIPS (for inflation protection) and call it good. If yo...
by David Jay
Tue Sep 12, 2017 11:35 am
Forum: Personal Consumer Issues
Topic: Have you opened a 2nd "Inquiry Only" Vanguard account?
Replies: 6
Views: 1393

Re: Have you opened a 2nd "Inquiry Only" Vanguard account?

If you are married, have your spouse open an account and then link the family accounts together.

I linked to my spouse's Roth and I can see her balances. No changes can be done, that requires logging into her account.
by David Jay
Mon Sep 11, 2017 8:58 pm
Forum: Investing - Help with Personal Investments
Topic: sell high/buy low??
Replies: 23
Views: 2615

Re: sell high/buy low??

There is nothing wrong with moving some assets from stocks to bonds. How about 60/40? I would not use cash, you can begin to build some ST bonds, but I would wait until 2-3 years before retirement. My plan between retirement and start of SS is to hold 1 years expenses in cash and an additional 2 yea...
by David Jay
Mon Sep 11, 2017 8:53 pm
Forum: Personal Consumer Issues
Topic: Is tall Fescue really tall?
Replies: 12
Views: 1349

Re: Is tall Fescue really tall?

It does seem to have low resource needs (esp. compared w/bluegrass) but it is a clump grass, it doesn't fill in like bluegrass with those long offshoots.
by David Jay
Mon Sep 11, 2017 8:41 pm
Forum: Investing - Help with Personal Investments
Topic: ROI [which funds have the best returns last 20 years?]
Replies: 6
Views: 647

Re: ROI [which funds have the best returns last 20 years?]

I don't know if this has been disgust yet I'm sure it has but I wasn't able to find it. What specific funds out there are giving the best ROI for the last 20 years (loads and fees included)? What tools can I use to find this info myself? Also I have no idea what loads and fees are and how they are ...
by David Jay
Mon Sep 11, 2017 7:38 am
Forum: Investing - Theory, News & General
Topic: Michael Kitces 4% rule podcast on Madfientist
Replies: 350
Views: 33234

Re: Michael Kitces 4% rule podcast on Madfientist

A critical factor is that I rent an apartment in close vicinity to Washington DC, and want to stay here in the foreseeable future. My present apartment is relatively inexpensive for the area, because it's in an older building. I anticipate that eventually my building will be sold and I'll need to f...
by David Jay
Sun Sep 10, 2017 5:20 pm
Forum: Personal Finance (Not Investing)
Topic: Medical Insurance between COBRA & Medicare
Replies: 5
Views: 353

Re: Medical Insurance between COBRA & Medicare

Options are very State-specific.

I intend to take qualify for Michigan's Medicaid expansion by minimizing my MAGI with Roth withdrawals from age 63 to age 65.
by David Jay
Fri Sep 08, 2017 3:47 pm
Forum: Personal Finance (Not Investing)
Topic: Purchasing Home With Girlfriend; Good or Bad?
Replies: 68
Views: 5388

Re: Purchasing Home With Girlfriend; Good or Bad?

123 wrote:
Fri Sep 08, 2017 3:28 pm
Buying property in partnership with someone else can be tricky and result in problems.
^^^ This

Not making any value judgement on your situation. You don't want to do this with your Dad, your Girlfriend, your Brother, or your Best Friend.
by David Jay
Fri Sep 08, 2017 3:11 pm
Forum: Personal Finance (Not Investing)
Topic: inherited annuity question?
Replies: 19
Views: 1325

Re: inherited annuity question?

You get raped on taxes if you inherit an annuity. I inherited one from my grandmother, had a big tax bill. It was a good investment for her as she had locked it in when interest rates were high, but otherwise I think annuities are usually a terrible investment from just about every angle possible. ...
by David Jay
Fri Sep 08, 2017 11:53 am
Forum: Personal Finance (Not Investing)
Topic: inherited annuity question?
Replies: 19
Views: 1325

Re: inherited annuity question?

[OT comment removed by admin LadyGeek] I inherited one from my grandmother, had a big tax bill. It was a good investment for her as she had locked it in when interest rates were high, but otherwise I think annuities are usually a terrible investment from just about every angle possible. Be careful ...
by David Jay
Fri Sep 08, 2017 8:38 am
Forum: Personal Finance (Not Investing)
Topic: inherited annuity question?
Replies: 19
Views: 1325

Re: inherited annuity question?

Pajamas wrote:
Thu Sep 07, 2017 9:45 am
Now you can see why so many financial firms are fighting against fiduciary requirements.
I read an article by an insurance industry analyst who thought that the fiduciary rule would reduce the total sales volume of annuities by one third.
by David Jay
Thu Sep 07, 2017 9:22 pm
Forum: Personal Finance (Not Investing)
Topic: Should I do 20 or 25 Year Term Life Insurance?
Replies: 49
Views: 3283

Re: Should I do 20 or 25 Year Term Life Insurance?

By my mid-50s my investment portfolio was large enough to provide for my family so I cancelled all of my life insurance policies. I think a 20 year policy is fine.
by David Jay
Thu Sep 07, 2017 9:19 pm
Forum: Investing - Help with Personal Investments
Topic: Help me evaluate my Whole Life Policy....
Replies: 8
Views: 1192

Re: Help me evaluate my Whole Life Policy....

I am hoping an expert will show up, but I think that you can cash out the policy and receive $9531.

You will have to pay taxes on the gains of $3040.
by David Jay
Thu Sep 07, 2017 8:53 am
Forum: Personal Finance (Not Investing)
Topic: inherited annuity question?
Replies: 19
Views: 1325

Re: inherited annuity question?

Nobody would take after tax money and put it into a IRA annuity would they?? Unfortunately, there are plenty of annuity salespeople who are pleased to sell an annuity into a tax-advantaged or tax-free account. It is financial mal-practice in virtually every case, but it makes the boat payments. You...
by David Jay
Thu Sep 07, 2017 8:45 am
Forum: Personal Finance (Not Investing)
Topic: For those planning early retirement....
Replies: 67
Views: 8355

Re: For those planning early retirement....

I am planning for baseline spending that matches my current take-home pay for the period from retirement to start of SS (age 68 minimum). I have no austerity plans.
by David Jay
Wed Sep 06, 2017 5:20 pm
Forum: Investing - Theory, News & General
Topic: U.S. stocks in freefall
Replies: 3944
Views: 1037647

Re: U.S. stocks in freefall

Uncle Pennybags wrote:
Wed Sep 06, 2017 5:10 pm
Nicolas wrote:
Wed Sep 06, 2017 12:25 pm
Generally true but "effect" can also be a verb in some contexts, such as in this example:
Fore some reason this has been bugging me for months and is impacting me. Or would that be effecting me?
I just think that you are affected.
by David Jay
Wed Sep 06, 2017 11:52 am
Forum: Investing - Theory, News & General
Topic: U.S. stocks in freefall
Replies: 3944
Views: 1037647

Re: U.S. stocks in freefall

Uncle Pennybags wrote:
Sun Sep 03, 2017 8:38 am
Does that effect or affect the market? I confuse the two.
Effect is the noun.
Affect is the verb.
by David Jay
Wed Sep 06, 2017 11:27 am
Forum: Investing - Theory, News & General
Topic: Investment Ideas At The Top Of The Market (Structured Notes)
Replies: 4
Views: 882

Re: Investment Ideas At The Top Of The Market (Structured Notes)

Investopedia article here: http://www.investopedia.com/articles/bonds/10/structured-notes.asp from the article: Conclusion Structured notes are very complex and few really understand how they will perform relative to simply investing directly in the markets. The illustrations and examples provided b...
by David Jay
Wed Sep 06, 2017 11:22 am
Forum: Investing - Help with Personal Investments
Topic: structured notes ?
Replies: 10
Views: 851

Re: structured notes ?

Investopedia article here: http://www.investopedia.com/articles/bonds/10/structured-notes.asp from the article: Conclusion Structured notes are very complex and few really understand how they will perform relative to simply investing directly in the markets. The illustrations and examples provided b...
by David Jay
Wed Sep 06, 2017 10:51 am
Forum: Personal Finance (Not Investing)
Topic: When calculating net worth, how do you value your house?
Replies: 167
Views: 8354

Re: When calculating net worth, how do you value your house?

Zestimate seems a bit generous in my case. I use Zestimate less 10%
by David Jay
Wed Sep 06, 2017 10:49 am
Forum: Investing - Help with Personal Investments
Topic: Vangard Index Fund through Merrill Edge
Replies: 26
Views: 1960

Re: Vangard Index Fund through Merrill Edge

emmakatemartone wrote:
Wed Sep 06, 2017 5:50 am
bear with me because I don't know anything (yet) - but what does using an index fund in ETF form practically mean for me?
There’s a WIKI for that, here: https://www.bogleheads.org/wiki/ETFs_vs_mutual_funds
by David Jay
Wed Sep 06, 2017 10:45 am
Forum: Investing - Help with Personal Investments
Topic: Help adjusting my investments
Replies: 6
Views: 342

Re: Help adjusting my investments

A few specific comments: 1. Generally, we do not recommend any sector holdings in our retirement accounts, betting on individual sectors of the economy is increasing your risk because individual sectors over-perform and under-perform over different periods of time. I would not hold the health care s...
by David Jay
Wed Sep 06, 2017 10:38 am
Forum: Investing - Help with Personal Investments
Topic: Help adjusting my investments
Replies: 6
Views: 342

Re: Help adjusting my investments

Even though you have a great start, I would recommend going back to the "Getting Started" wiki in order to get an understanding of the Boglehead approach, it will help us communicate:

https://www.bogleheads.org/wiki/Boglehe ... art-up_kit
by David Jay
Tue Sep 05, 2017 9:32 pm
Forum: Personal Finance (Not Investing)
Topic: Cash out whole life
Replies: 13
Views: 1547

Re: Cash out whole life

It sounds like the death benefit is too small to factor into your financial planning. If you have enough life insurance, then you don't need the whole life. If you need more in death benefit, then you need more term. In either case the whole life policy does not matter. ^^^ This It is unnecessary c...
by David Jay
Tue Sep 05, 2017 9:23 pm
Forum: Local Chapters and Bogleheads Community
Topic: [Are the Bogleheads] getting less interesting?
Replies: 255
Views: 16185

Re: [Are the Bogleheads] getting less interesting?

To the experts: The best way to learn something is to try and teach it. Instead of reading "mundane" topics, take on a challenge. Pick a new investor asking for help in the Investing - Help with Personal Investments forum and make it your personal project to get them going. ^^^ This! When I scan th...
by David Jay
Tue Sep 05, 2017 8:28 pm
Forum: Personal Finance (Not Investing)
Topic: Cash out whole life
Replies: 13
Views: 1547

Re: Cash out whole life

It sounds like the death benefit is too small to factor into your financial planning. If you have enough life insurance, then you don't need the whole life. If you need more in death benefit, then you need more term. In either case the whole life policy does not matter. ^^^ This It is unnecessary c...
by David Jay
Tue Sep 05, 2017 5:58 pm
Forum: Investing - Theory, News & General
Topic: Do retiree BHs actually run down their portfolios?
Replies: 73
Views: 8033

Re: Do retiree BHs actually run down their portfolios?

A 5% withdrawal rate of a 100% stock portfolio has failed about 1 out of 8 times over 20 years and 1 out of 6 in 30 years - so no, you can't plan on it working for 50+ years with any sort of confidence. I think he means 5% of remaining portfolio balance (a variable withdrawal strategy), not 5% infl...
by David Jay
Mon Sep 04, 2017 3:55 pm
Forum: Investing - Theory, News & General
Topic: What is the "safe, safe" withdrawal rate?
Replies: 38
Views: 3973

Re: What is the "safe, safe" withdrawal rate?

The biggest threat to the 4% SWR is sequence-of-returns risk if you are carrying a significant equity position.

Doing what you have outlined above removes the sequence-of-returns risk.
by David Jay
Fri Sep 01, 2017 7:07 pm
Forum: Investing - Help with Personal Investments
Topic: Are total bond funds much risker than cd's?
Replies: 10
Views: 1532

Re: Are total bond funds much risker than cd's?

I was just concerned that the bond market would tank right after I do it..but like any other market, for the long term I suppose it's less risk. According to the chart in the link below, the worst year for a 100% bond portfolio was an 8.1% decline. So "tanking" is a relative term. https://www.vangu...
by David Jay
Thu Aug 31, 2017 7:52 pm
Forum: Investing - Theory, News & General
Topic: Passive vs. Active Portfolio Mgt ?
Replies: 17
Views: 1937

Re: Passive vs. Active Portfolio Mgt ?

The consensus seems to be during good times (last 7 years) both Passive and Actively Managed portfolios looked smart. During bad times (starting 2007) the Passive portfolios drop as do the the Active ... but the Active have potential to drop more/less depending on the Active Mgrs (Advisors) investm...