Search found 4403 matches

by David Jay
Sun Feb 25, 2018 8:18 pm
Forum: Investing - Help with Personal Investments
Topic: Need help reducing investment expenses for my Mother (and any other advice)
Replies: 8
Views: 302

Re: Need help reducing investment expenses for my Mother (and any other advice)

Posting the full name of the annuity may allow us to find a copy of the prospectus online. Then we can provide more feedback. Most variable annuities have under-the-cover expenses of around 2.5%. Add on the 1.45 AUM fee and you are looking at half your mom’s stock gains and all the bond gains going ...
by David Jay
Sun Feb 25, 2018 3:16 pm
Forum: Investing - Theory, News & General
Topic: Stock/Bond Ratio Determines Risk: Flawed Thesis?
Replies: 16
Views: 778

Re: Stock/Bond Ratio Determines Risk: Flawed Thesis?

Bogle, Swedroe, Bernstein, Ferri, Malkiel, Benjamin...

I think I will stay the course
by David Jay
Sat Feb 24, 2018 7:31 pm
Forum: Investing - Theory, News & General
Topic: Two- Factor Authentication at Vanguard
Replies: 8
Views: 984

Re: Two- Factor Authentication at Vanguard

You can choose 2FA every time you log in or only when you log in from a new device. I chose the “new device” only. It must leave a tracking cookie or something. First time I logged in from my home desktop (Win10) it sent a code to my phone. Then when I first logged in from my tablet (iPad). After th...
by David Jay
Sat Feb 24, 2018 11:40 am
Forum: Investing - Help with Personal Investments
Topic: traditional TRA to roth conversion
Replies: 11
Views: 652

Re: traditional TRA to roth conversion

Last year I transferred my Roth Then transferred an old SIMPLE IRA to tIRA then converted that to the Roth I transferred ... Taxable event, but my income doubled this year so felt like the time to do it Did I do a backdoor Roth without even knowing to call it that? No. A backdoor Roth uses after-ta...
by David Jay
Sat Feb 24, 2018 10:55 am
Forum: Local Chapters and Bogleheads Community
Topic: Roll Call for the Retirement Class of 2018!
Replies: 109
Views: 13226

Re: Roll Call for the Retirement Class of 2018!

Hello, You can add me to the Class 03 March! MegaCorp offered a Separation program, and I was one of lucky ones accepted. Dropping off all my computer equip this Friday, then driving DIRECTLY to airport to spend 2 months living at the beach at the very end of an island on the Outer Banks, NC. Stayi...
by David Jay
Fri Feb 23, 2018 8:15 pm
Forum: Personal Finance (Not Investing)
Topic: Hitting top of bracket when IRA deductions are non-deductible
Replies: 4
Views: 474

Re: Hitting top of bracket when IRA deductions are non-deductible

If you are close to the limit (or know you are over the limit), look at the “backdoor Roth”, Wiki here: https://www.bogleheads.org/wiki/Backdoor_Roth_IRA
by David Jay
Fri Feb 23, 2018 8:06 pm
Forum: Investing - Help with Personal Investments
Topic: Surrender Charges (Prudential) and account with Edward Jones
Replies: 1
Views: 238

Re: Surrender Charges (Prudential) and account with Edward Jones

It is probably worth waiting 2 months to drop the surrender fee. It will cost you more than the surrender fee to keep this high cost policy in place for a full additional year. The surrender fee is there to cover the commission paid to the salesperson (8% commission is typical). Since the commission...
by David Jay
Fri Feb 23, 2018 5:30 pm
Forum: Investing - Help with Personal Investments
Topic: Thoughts on AA with Tech Tilt
Replies: 3
Views: 325

Re: Thoughts on AA with Tech Tilt

It’s reasonable. Your small tilt (5.5%) will not make much of a difference (either positive or negative). Most here will not tilt to market sectors because we do not know how any given sector will perform in the future. [] Those who tilt typically tilt to factors (value, small cap, momentum, etc), n...
by David Jay
Fri Feb 23, 2018 4:02 pm
Forum: Investing - Help with Personal Investments
Topic: Vanguard Roth IRA
Replies: 3
Views: 356

Re: Vanguard Roth IRA

I think either a TargetRetirement or a LifeStrategy is a great choice for a single, fully diversified investment. Choose the TR fund by the Asset Allocation, not by the year. You have to be confident enough in your stock allocation to not run for the exits when the market moves lower (as it does eve...
by David Jay
Fri Feb 23, 2018 11:31 am
Forum: Investing - Help with Personal Investments
Topic: Should I bite the bullet and invest in this market?
Replies: 48
Views: 3926

Re: Should I bite the bullet and invest in this market?

You need to get your brain and your gut to arrive at a consensus on what your long-term asset allocation should be. I am going to steal this construction: Your AA may need to be a negotiated agreement between your gut and your brain. I watched a Bogle interview last night. He commented that he is 5...
by David Jay
Fri Feb 23, 2018 11:01 am
Forum: Investing - Theory, News & General
Topic: Terminology question: what does "losing money" mean?
Replies: 71
Views: 2757

Re: Terminology question: what does "losing money" mean?

It is beyond me how something as basic as the concept of nominal and real in finance can be a discussion. If there is some controversy over either/or the obvious answer is both. I think the issue is the use of the word "money". Is "money" a nominal or a real value? I believe since money is denomina...
by David Jay
Fri Feb 23, 2018 10:52 am
Forum: Investing - Help with Personal Investments
Topic: Should I bite the bullet and invest in this market?
Replies: 48
Views: 3926

Re: Should I bite the bullet and invest in this market?

A bit of dollar-cost-averaging is acceptable as a psychological buffer. Invest 1/24 of your 450,000 ($18,750) every month, without fail, for 2 years. On average, investing it all now will give better financial results but DCA will buffer any market changes (i.e. if there is a big market drop after 6...
by David Jay
Thu Feb 22, 2018 8:21 pm
Forum: Investing - Theory, News & General
Topic: Terminology question: what does "losing money" mean?
Replies: 71
Views: 2757

Re: Terminology question: what does "losing money" mean?

nisiprius wrote:
Thu Feb 22, 2018 7:10 pm
Thanks to everyone who replied. You confirmed what I wanted to believe.
Hey, we’re just here to confirm your biases...
by David Jay
Thu Feb 22, 2018 7:05 pm
Forum: Investing - Help with Personal Investments
Topic: Young Investor: Investing In A Bear Market
Replies: 29
Views: 2285

Re: Young Investor: Investing In A Bear Market

Thanks for all the input. I wanted to clarify that I’m not concerned about investing in the market once the bear has begun and you can find assets on the cheap. Moreover my concern is that we just had a heck of a few good years and that if I remain invested for now, I don’t want to take the initial...
by David Jay
Thu Feb 22, 2018 6:46 pm
Forum: Investing - Theory, News & General
Topic: Terminology question: what does "losing money" mean?
Replies: 71
Views: 2757

Re: Terminology question: what does "losing money" mean?

It cannot be #1, because “money” is denominated. All three funds “made” hundreds of dollars.

The language problem is that “money” is not the same as “value” or “purchasing power”. That is the disconnect.
by David Jay
Thu Feb 22, 2018 4:40 pm
Forum: Investing - Theory, News & General
Topic: I'm thinking about buying some real estate to diversify my virtual wealth - agree?
Replies: 17
Views: 1343

Re: I'm thinking about buying some real estate to diversify my virtual wealth - agree?

itstoomuch wrote:
Thu Feb 22, 2018 3:47 pm
There are similarities between GLWB Annuities, both Variable and Fixed-Indexed, and RE, either held for Income or diversification.
[for the OP] And how do insurance companies keep track of your annuity information? Oh, yeah - bits and bytes.
by David Jay
Thu Feb 22, 2018 4:35 pm
Forum: Investing - Help with Personal Investments
Topic: I need help with my 401k
Replies: 11
Views: 682

Re: I need help with my 401k

BaylorBears wrote:
Wed Feb 21, 2018 8:09 pm
I'm mainly just trying to understand if there are tax implications of selling say $50,000 in VTSAX to buy $50,000 in the company stock in the profit sharing plan...
Is this a taxable event? We can't tell you until you identify the IRS category of the profit sharing plan.
by David Jay
Thu Feb 22, 2018 4:21 pm
Forum: Investing - Help with Personal Investments
Topic: I need help with my 401k
Replies: 11
Views: 682

Re: I need help with my 401k

I would call the custodian and/or talk to HR (human resources) to confirm that this is a tax deferred account before making any huge changes. From your description, it sounds like it is part of your 401k, but we can't know for sure without looking into the details of your plan. Is it correct to say...
by David Jay
Thu Feb 22, 2018 12:24 pm
Forum: Investing - Help with Personal Investments
Topic: Young Investor: Investing In A Bear Market
Replies: 29
Views: 2285

Re: Young Investor: Investing In A Bear Market

Toons wrote:
Thu Feb 22, 2018 6:41 am
Should look forward to an extended bear market.
Your dollars will purchase more shares at depressed prices.
+1

As the old saying goes: "The stock market is the only place where, when the products go on sale, customers head for the exits".
by David Jay
Thu Feb 22, 2018 12:03 pm
Forum: Investing - Help with Personal Investments
Topic: First time poster looking for advice [traditional IRA with pension]
Replies: 5
Views: 371

Re: First time poster looking for advice [traditional IRA with pension]

Welcome to the forum! Here at BH we use the term "backdoor Roth" for a process where you make an annual $5500 after-tax contribution to an (empty) traditional IRA and then immediately do a conversion to your Roth IRA. This is your best option after you have maxed-out your employer sponsored accounts...
by David Jay
Wed Feb 21, 2018 8:29 pm
Forum: Investing - Help with Personal Investments
Topic: I need help with my 401k
Replies: 11
Views: 682

Re: I need help with my 401k

BaylorBears wrote:
Wed Feb 21, 2018 8:09 pm
I'm mainly just trying to understand if there are tax implications...
And we can’t tell you that without knowing the legal/tax status of the profit sharing account - what is it?
by David Jay
Wed Feb 21, 2018 7:56 pm
Forum: Investing - Help with Personal Investments
Topic: I need help with my 401k
Replies: 11
Views: 682

Re: I need help with my 401k

I am guessing that both of these accounts are inside of a 401K plan. My 401K had a similar arrangement - one account contained my contributions and was (obviously) 100% vested. There was a 7 year vesting period for company contributions held in the other account. You need to check with your HR depar...
by David Jay
Wed Feb 21, 2018 7:25 pm
Forum: Investing - Help with Personal Investments
Topic: Vanguard Roth IRA - Keep same fund or change?
Replies: 6
Views: 456

Re: Vanguard Roth IRA - Keep same fund or change?

The Star fund has a good history so the discussion is between good and (perhaps) better. No bad choice here. I prefer a portfolio with more diversification than the Star fund. I would choose one of the All-in-One funds that includes both Total US and Total International stock funds: TargetRetirement...
by David Jay
Wed Feb 21, 2018 11:56 am
Forum: Investing - Theory, News & General
Topic: Anyone subscribe to Socrates ?
Replies: 18
Views: 1986

Re: Anyone subscribe to Socrates ?

triceratop wrote:
Tue Feb 20, 2018 9:50 pm
nisiprius wrote:
Tue Feb 20, 2018 7:51 pm
π? Ratio of circumference to diameter? 3.1415926535? That's not a joke?
Only of a circle. Your demonstrated lack of precision makes you a poor fit for this line of work. :twisted:
...and only 10 places after the decimal. Any piker can take PI to several hundred places.
by David Jay
Wed Feb 21, 2018 10:25 am
Forum: Investing - Help with Personal Investments
Topic: Whole life->variable life or cash out
Replies: 4
Views: 474

Re: Whole life->variable life or cash out

It isn't worth the added complexity to do anything but cash it out.
by David Jay
Wed Feb 21, 2018 10:20 am
Forum: Investing - Theory, News & General
Topic: J. Montier: US equity market is obscenely overvalued
Replies: 33
Views: 3253

Re: J. Montier: US equity market is obscenely overvalued

There was another GMO thread here just a week or so ago.

Somebody in the financial press must have posted a link...
by David Jay
Tue Feb 20, 2018 10:43 pm
Forum: Investing - Theory, News & General
Topic: Quantitative value for portfolio risk?
Replies: 8
Views: 333

Re: Quantitative value for portfolio risk?

Sharpe Ratio is pretty close to a risk/return number. Description here: https://www.investopedia.com/terms/s/sharperatio.asp I do not think that age can be factored into any risk/return ratio. Your holdings risk is the same regardless of age (i.e. from the definition of Sharpe Ratio, a T-bill has a ...
by David Jay
Tue Feb 20, 2018 10:35 pm
Forum: Personal Finance (Not Investing)
Topic: Safe to file taxes now?
Replies: 57
Views: 4611

Re: Safe to file taxes now?

Filed the weekend before last. Refund was deposited in my account today.
by David Jay
Tue Feb 20, 2018 1:03 pm
Forum: Personal Finance (Not Investing)
Topic: Life insurance question
Replies: 7
Views: 374

Re: Life insurance question

The general view here is to purchase term insurance to provide for your dependents in case of your demise. Over the years, in most cases your dependents become independent and your portfolio continues to grow. Once your portfolio is able to provide for all needs in retirement, you have no need of li...
by David Jay
Mon Feb 19, 2018 10:17 pm
Forum: Investing - Help with Personal Investments
Topic: Flexible Premium Deferred Annuities
Replies: 4
Views: 332

Re: Flexible Premium Deferred Annuities

Has anyone heard the concept of using a flex deferred annuity in a Bucket Strategy for Bucket 1 or 2? Not sure I am buying into this idea ? First google result for “flex deferred annuity”: Flexible premium deferred variable annuity Go to the Wiki for lots of information on Variable Annuities
by David Jay
Mon Feb 19, 2018 10:13 pm
Forum: Investing - Help with Personal Investments
Topic: Flexible Premium Deferred Annuities
Replies: 4
Views: 332

Re: Flexible Premium Deferred Annuities

Sounds like a new name for a VA.

The insurance industry has a history of renaming products after they develop a bad reputation.
by David Jay
Mon Feb 19, 2018 7:27 pm
Forum: Investing - Theory, News & General
Topic: How do you go from midcap to large?
Replies: 6
Views: 562

Re: How do you go from midcap to large?

Let's base this discussion on this theory. Tomorrow's large cap stocks are today's mid and small cap stocks. The vast majority of today’s SC and MC stocks will never be large cap stocks. How does one know, in advance, which ones will become large cap stocks? Total Stock takes care of that - own the...
by David Jay
Mon Feb 19, 2018 6:49 pm
Forum: Personal Consumer Issues
Topic: $12,000 Refrigerator? [Looking in $7k price range]
Replies: 66
Views: 6779

Re: $12,000 Refrigerator?

I've learned to look at the bright side of things. OP can afford an expensive (a very expensive) item; good for him. He's helping drive the economy; thank you, OP. It provides a nice commission for the salesperson, and he's doing well for the month, and doesn't have to worry about his budget or hea...
by David Jay
Mon Feb 19, 2018 2:20 pm
Forum: Personal Finance (Not Investing)
Topic: Employee, independent contractor or what?
Replies: 4
Views: 274

Re: Employee, independent contractor or what?

I was kind of operating in the same vein as "Silk", a good-faith effort to operate in the best interest of Megacorp is all they can expect. Otherwise they need to give you specific "this is what we expect of contract workers" instructions.
by David Jay
Mon Feb 19, 2018 1:09 pm
Forum: Personal Finance (Not Investing)
Topic: Employee, independent contractor or what?
Replies: 4
Views: 274

Re: Employee, independent contractor or what?

You are not an employee. Megacorp may wish for you at operate to the same behavioral standards as an employee, but that does not make you an employee.

If they don't send you a W2, you are not an employee.
by David Jay
Mon Feb 19, 2018 1:05 pm
Forum: Investing - Help with Personal Investments
Topic: What do Bogleheads think of Passive income through Dividend Stocks
Replies: 58
Views: 5763

Re: What do Bogleheads think of Passive income through Dividend Stocks

Derivative wrote:
Mon Feb 19, 2018 12:53 pm
I have looked at some YouTube videos on people investing in dividend stocks...
Perhaps this is not the optimal source of investment information.
by David Jay
Mon Feb 19, 2018 10:19 am
Forum: Investing - Help with Personal Investments
Topic: 401K options, I think I can choose better funds
Replies: 16
Views: 593

Re: 401K options, Ii think I can have choose better funds

BTW - your new 2018 federal marginal rate would be 22%, but you might be at 12% between the new standard deduction and those 401K contributions.
by David Jay
Mon Feb 19, 2018 10:18 am
Forum: Investing - Help with Personal Investments
Topic: 401K options, I think I can choose better funds
Replies: 16
Views: 593

Re: 401K options, Ii think I can have choose better funds

onourway wrote:
Mon Feb 19, 2018 10:12 am
Personally I would choose FUSVX FID 500 INDEX and FSIVX FID INTL INDEX at your chosen split and contribute as much as possible while then proceeding to forget about it for a couple of decades. :D
+1

Maybe 75% FUSVX and 25% FSIVX
by David Jay
Mon Feb 19, 2018 9:41 am
Forum: Investing - Theory, News & General
Topic: How many of you use the "4% rule" during retirement?
Replies: 68
Views: 8268

Re: How many of you use the "4% rule" during retirement?

I'm with David Jay. I'm not sure what that means, I don't think I wrote of my preference in this thread. I prefer a fixed percentage (5%?) of remaining portfolio (from Merriman's research). Easy. No inflation calculations (CPI-U? CPI-W?). If there is cognitive decline I can ask my daughter to multi...
by David Jay
Sun Feb 18, 2018 8:42 am
Forum: Investing - Help with Personal Investments
Topic: Over 55 does contributing to a Roth 401K make sense based on new Tax Brackets
Replies: 25
Views: 1849

Re: Over 55 does contributing to a Roth 401K make sense based on new Tax Brackets

At your age (just a few years behind me), I would begin to look at RMDs and the pressure they will put on your future plans. The RMD withdrawal percentage increases every year, so by your 80s your RMD is pushing you into higher brackets. Many here at BH are balancing their traditional and Roth contr...
by David Jay
Sat Feb 17, 2018 11:07 am
Forum: Personal Consumer Issues
Topic: $12,000 Refrigerator? [Looking in $7k price range]
Replies: 66
Views: 6779

Re: $12,000 Refrigerator?

I am look at ~ $7k approx for DW, Fridge, Micro, Stove. $7000??? For kitchen appliances??? OK, it keeps the food cold, washes dishes, and cooks (at least 3 different ways)....what is this poor Boglehead missing? [/sarc] (Edit) it is all perspective. You can’t imagine spending $12,000 on a fridge. 9...
by David Jay
Sat Feb 17, 2018 10:16 am
Forum: Investing - Theory, News & General
Topic: ETFs a cause of market turbulence?
Replies: 13
Views: 947

Re: Index funds a cause of market turbulence?

It is all that rebalancing BHs are doing when the market changes. Look how many threads there were about rebalancing during the market drop these last weeks. It exacerbates the downside. I don’t think so. Rebalancing is a counter-action to a market move. Let’s say I am trying to hold at 60/40 and t...
by David Jay
Sat Feb 17, 2018 9:59 am
Forum: Personal Finance (Not Investing)
Topic: Can I convert whole life back to term?
Replies: 16
Views: 895

Re: Can I convert whole life back to term?

I do not know if this is the ONLY way, but why would you choose to use the agent who put you in this unacceptable situation? Get some term quotes before you decide. I expect that you will find other companies will have better term rates (nothing against your current insurer, but a company that push...
by David Jay
Sat Feb 17, 2018 9:56 am
Forum: Investing - Help with Personal Investments
Topic: When do IRA's stop making sense?
Replies: 37
Views: 2656

Re: When do IRA's stop making sense?

Given the tax implications/limitations, does it make sense to contribute to that IRA (and/or open up a spousal IRA) or am I better served in other savings vehicles? Is there an opportunity for a backdoor Roth given that I can't roll over my existing traditional IRA? Your income qualifies your wife ...
by David Jay
Sat Feb 17, 2018 9:45 am
Forum: Personal Finance (Not Investing)
Topic: Can I convert whole life back to term?
Replies: 16
Views: 895

Re: Can I convert whole life back to term?

1) Getting a term policy somewhere else. 2) Cancelling and cashing out my policy and reducing but keeping some of my wife's b/c she can't get insurance any other way? I do not know if this is the ONLY way, but why would you choose to use the agent who put you in this unacceptable situation? Get som...
by David Jay
Fri Feb 16, 2018 6:18 pm
Forum: Investing - Help with Personal Investments
Topic: Moving from Speculation to Investment
Replies: 2
Views: 256

Re: Moving from Speculation to Investment

As the first reply suggested, we need to know how much of the individual stock holdings are to tax-advantaged accounts.
by David Jay
Fri Feb 16, 2018 5:45 pm
Forum: Investing - Theory, News & General
Topic: What is the evidence against slice and dice?
Replies: 59
Views: 4583

Re: What is the evidence against slice and dice?

Will you be able to stick with a strategy, whether it be TSM or tilting, that underperforms the market for a decade or more? These are difficult questions to answer, and I believe that they can only be answered by us as individual investors. Yup. As I have often written to those who think they want...
by David Jay
Fri Feb 16, 2018 2:09 pm
Forum: Investing - Theory, News & General
Topic: Increasing SS PIA by working again
Replies: 27
Views: 1548

Re: Increasing SS PIA by working again

edit #2: I can't even find in the current law describing the calculation ( https://www.law.cornell.edu/uscode/text/42/415 ) where the highest 35 years comes into play. Search for 35 (as number or text) and it's nowhere to be found. Here is a description of the calculation on the Social Security web...
by David Jay
Fri Feb 16, 2018 1:08 pm
Forum: Investing - Help with Personal Investments
Topic: Mutual Fund selling price
Replies: 9
Views: 521

Re: Mutual Fund selling price

If you feel that limit orders are essential to your investing style, many Vanguard mutual funds are also available as ETFs. ETFs are bought and sold on exchanges during market hours. Look up the fund you are interested in on the Vanguard website. A banner at the top will tell you the alternate share...