Search found 5228 matches

by David Jay
Tue Aug 21, 2018 12:43 pm
Forum: Investing - Help with Personal Investments
Topic: Just left Edelman Financial and need help
Replies: 7
Views: 857

Re: Just left Edelman Financial and need help

Don't overlook the Wiki. A wealth of information on the various topics, for instance, as suggested by Big Jim:

Tax efficient asset allocation (across various accounts): https://www.bogleheads.org/wiki/Tax-eff ... _placement
by David Jay
Tue Aug 21, 2018 12:15 pm
Forum: Investing - Theory, News & General
Topic: What to do at 62?
Replies: 4
Views: 347

Re: What to do at 62?

I believe there are numerous other threads on this site regarding this. Agree, there are a huge number of threads, search as follows: SS age 70 (this is the longest you reasonably delay) Roth Conversions Living Expenses before SS Here is my advice to someone about spending from TIRA first: https://...
by David Jay
Tue Aug 21, 2018 8:35 am
Forum: Investing - Theory, News & General
Topic: Cash Flow Gain Primary Residence
Replies: 36
Views: 872

Re: Cash Flow Positive Primary Residence

So what you are saying is that purchasing is less cash-flow-negative than renting.

Cash flow involves the flow of cash. If you have a mortgage, insurance, property taxes and upkeep, you have cash flowing out. That is not positive.
by David Jay
Tue Aug 21, 2018 7:45 am
Forum: Investing - Theory, News & General
Topic: Are millennials botching their asset allocations?
Replies: 68
Views: 6780

Re: Are millennial botching their asset allocations?

T4REngineer wrote:
Tue Jul 31, 2018 9:17 am
Interesting, at 30 I know of no one in my peer group that holds 0% in equities aside from those who have zero savings :shock:
I think the "zero savings" group is skewing the sample. A hundred bucks in a savings account is 0% equity.
by David Jay
Tue Aug 21, 2018 7:39 am
Forum: Personal Finance (Not Investing)
Topic: Inherited Roth IRA
Replies: 1
Views: 154

Re: Inherited Roth IRA

Inherited Roth accounts require withdrawals (RMDs) based on the life expectancy of the beneficiary (your daughters).

There are no Federal taxes on these distributions and no addition to MAGI (used to calculate cut-off points for needs-based programs).
by David Jay
Tue Aug 21, 2018 7:36 am
Forum: Investing - Theory, News & General
Topic: You Invest from JP Morgan [free trades offer]
Replies: 26
Views: 878

Re: You Invest from JP Morgan

I'm certainly not going to make a decision based on a CNBC article. The app doesn't even roll out until next week.

Like all things financial, make sure you read the fine print...
by David Jay
Sun Aug 19, 2018 3:57 pm
Forum: Personal Finance (Not Investing)
Topic: Fixed Income in Fidelity Roth IRA
Replies: 5
Views: 404

Re: Fixed Income in Fidelity Roth IR

Yes, you can buy CDs inside a Roth IRA. What is your definition of “Risk”? What kind of temporary drop could you endure in order to avoid the opposite risk of not keeping up with inflation? I see you did not mention “bonds” as any of your options. The traditional way that Bogleheads manage risk is w...
by David Jay
Fri Aug 17, 2018 7:57 pm
Forum: Investing - Help with Personal Investments
Topic: How Best to Utilize Permanent Life Insurance Upon Retirement
Replies: 22
Views: 1621

Re: How Best to Utilize Permanent Life Insurance Upon Retirement

There are lots of versions of variable policies. Does your variable policy have a fixed insurance premium? Most of the variable policies I have seen have escalating insurance premiums that “eat up” a policy if kept into your 70s or 80s. I strongly recommend that you carefully study the prospectus. A...
by David Jay
Fri Aug 17, 2018 6:04 pm
Forum: Investing - Help with Personal Investments
Topic: Today I retired [should I invest in rental properties?]
Replies: 25
Views: 2738

Re: Today I retired [should I invest in rental properties?]

So you WANT a job? That’s what you get when you own rentals. Been there. Done that. Got the t-shirt.
by David Jay
Fri Aug 17, 2018 12:23 pm
Forum: Investing - Help with Personal Investments
Topic: Clarification on multi-year Backdoor Roth
Replies: 3
Views: 369

Re: Clarification on multi-year Backdoor Roth

I have not done a non-ded contribution since 2016. The $5500 limit on IRA contributions is for all types and all accounts (deductable/non-deductable, tRIA/Roth). So the answers below presume you have made no contribution in 2018 to any IRA. My question is: can I/should I do a double contribution in...
by David Jay
Fri Aug 17, 2018 11:01 am
Forum: Personal Finance (Not Investing)
Topic: Help with catch-up contribs: make them? And where?
Replies: 4
Views: 363

Re: Help with catch-up contribs: make them? And where?

In my opinion, you do not "need" to make catch-up contributions with your generous pensions and a targeted spending level of $120,000/yr. What I would recommend is that you look at the RMD implications for your retirement. That 1.5m of pre-tax is going to continue to grow in your retirement years d...
by David Jay
Fri Aug 17, 2018 10:02 am
Forum: Personal Finance (Not Investing)
Topic: Help with catch-up contribs: make them? And where?
Replies: 4
Views: 363

Re: Help with catch-up contribs: make them? And where?

In my opinion, you do not "need" to make catch-up contributions with your generous pensions and a targeted spending level of $120,000/yr. What I would recommend is that you look at the RMD implications for your retirement. That 1.5m of pre-tax is going to continue to grow in your retirement years du...
by David Jay
Thu Aug 16, 2018 5:40 pm
Forum: Investing - Help with Personal Investments
Topic: Better Behavioural Finance Books?
Replies: 17
Views: 1218

Re: Better Behavioural Finance Books?

“Your Money and your Brain” by Jason Zweig.

For a deeper dig (and not just finance) there is “Thinking, Fast and Slow” by Daniel Kahneman
by David Jay
Thu Aug 16, 2018 5:34 pm
Forum: Personal Consumer Issues
Topic: Lock Suitcases on International Flight or Not?
Replies: 24
Views: 1585

Re: Lock Suitcases on International Flight or Not?

There are some third-world countries where I might want to lock luggage to “keep the honest people out” (classic reference).

But not to Northern Europe or major Asian countries.
by David Jay
Thu Aug 16, 2018 11:47 am
Forum: Investing - Help with Personal Investments
Topic: How Best to Utilize Permanent Life Insurance Upon Retirement
Replies: 22
Views: 1621

Re: How Best to Utilize Permanent Life Insurance Upon Retirement

Hard to give useful advice because "permanent" covers a lot of ground these days. What specifically do you hold? Are both policies traditional whole life ? Or are they some other variant? One is whole life, a Northwestern Select 100 policy; the other is Northwestern variable policy. Almost without ...
by David Jay
Thu Aug 16, 2018 9:41 am
Forum: Investing - Help with Personal Investments
Topic: What is the best way to invest my fixed income allocation within my IRA?
Replies: 6
Views: 673

Re: What is the best way to invest my fixed income allocation within my IRA?

I think you may be doing a backwards-looking evaluation. FTBFX is already up to a 3.5% SEC yield (and climbing). With a 10 year initial time horizon (actually a 30+ year time horizon before total withdrawal) I would leave it where it is. Mix that drink. Unless you truly enjoy chasing yield - in the ...
by David Jay
Thu Aug 16, 2018 8:26 am
Forum: Investing - Help with Personal Investments
Topic: How Best to Utilize Permanent Life Insurance Upon Retirement
Replies: 22
Views: 1621

Re: How Best to Utilize Permanent Life Insurance Upon Retirement

Hard to give useful advice because "permanent" covers a lot of ground these days. What specifically do you hold? Are both policies traditional whole life? Or are they some other variant?
by David Jay
Wed Aug 15, 2018 9:11 pm
Forum: Investing - Help with Personal Investments
Topic: Roth and Social Security
Replies: 8
Views: 1312

Re: Roth and Social Security

If I withdrawal from Roth and receive social security benefits after retirement, only social security will count towards taxable income. If I have Traditional, then both traditional and social security will count towards taxable income. In other words, my social security will could be taxed more he...
by David Jay
Wed Aug 15, 2018 11:47 am
Forum: Personal Finance (Not Investing)
Topic: order of withdrawal in retirement (regular, IRA, Roth)?
Replies: 8
Views: 652

Re: order of withdrawal in retirement (regular, IRA, Roth)?

Mike: Let me give you my ultimate example: If I live long enough to exhaust the tax deferred (401K/tIRA, etc.) accounts with withdrawals and Roth conversions, I will leave my wife with just a one, big Roth. She can do anything she needs to do, take out as much as she needs any given year (new a new ...
by David Jay
Wed Aug 15, 2018 11:36 am
Forum: Personal Finance (Not Investing)
Topic: order of withdrawal in retirement (regular, IRA, Roth)?
Replies: 8
Views: 652

Re: order of withdrawal in retirement (regular, IRA, Roth)?

Admiral wrote:
Wed Aug 15, 2018 11:31 am
This not the case with a Roth: if you do nothing, you pay nothing.
Even if you do SOMETHING with your Roth, you pay nothing... :happy
by David Jay
Wed Aug 15, 2018 11:31 am
Forum: Investing - Help with Personal Investments
Topic: Index Fund Tracking Question
Replies: 1
Views: 156

Re: Index Fund Tracking Question

Tracking is a tiny issue with index funds. But so it the difference between a 0.04 ER and a zero ER. The more interesting question (to me) is Fidelity's use of their own index. They are doing this partially to avoid paying fees to the index creator (S&P, Barclays, Russell, CRSP, etc.). But it may le...
by David Jay
Tue Aug 14, 2018 12:22 pm
Forum: Investing - Help with Personal Investments
Topic: (ETF vs Investor shares vs Admiral) VXF vs VEXAX vs VEXMX -- what's the difference?
Replies: 4
Views: 303

Re: (ETF vs Investor shares vs Admiral) VXF vs VEXAX vs VEXMX -- what's the difference?

Admiral class is an automatic upgrade when you reach $10,000. So if you purchase some VEXMX, you will get the class upgrade to VEXAX when asset value reaches $10,000 (either by growth or by additional purchase).
by David Jay
Mon Aug 13, 2018 2:27 pm
Forum: Investing - Help with Personal Investments
Topic: Inflation adjusted annuity
Replies: 26
Views: 1547

Re: Inflation adjusted annuity

Fidelity will quote a 2% escalator on their website. I used that as a starting point (I hate to sign up for more spam email).
by David Jay
Mon Aug 13, 2018 10:12 am
Forum: Investing - Help with Personal Investments
Topic: much better ytd return than the vg s&p 500
Replies: 7
Views: 841

Re: much better ytd return than the vg s&p 500

looking wrote:
Mon Aug 13, 2018 9:44 am
Just wondering what is your thought as for the YTD return.
I can't imagine selecting an equity fund based on the performance of the fund over the last 7+ months.
by David Jay
Mon Aug 13, 2018 8:28 am
Forum: Investing - Help with Personal Investments
Topic: ESOP - Diversification options
Replies: 11
Views: 643

Re: ESOP - Diversification options

If we choose to diversify out, we can transfer to the 401K, an IRA, or take a cash distribution... I think this is the first time that I saw that you do in fact have the option of rolling over into a tIRA. I don't know the choices and costs in your 401K, but I chose to rollover into an IRA for maxi...
by David Jay
Mon Aug 13, 2018 8:20 am
Forum: Investing - Help with Personal Investments
Topic: ESOP - Diversification options
Replies: 11
Views: 643

Re: ESOP - Diversification options

Thanks for the responses. I'm now leaning towards selling the full 50%, but I wonder about the following: I would do the full 50% without the slightest hesitation. It isn’t about “performance”, it is about RISK. Right now you two have horribly concentrated risk. Two thirds of your retirement portfo...
by David Jay
Sun Aug 12, 2018 1:49 pm
Forum: Personal Finance (Not Investing)
Topic: Comfortably Retired and charity giving?
Replies: 25
Views: 1984

Re: Comfortably Retired and charity giving

I address these comments to those of us taking RMDs, who are over age 70.5, and have a desire to make charitable contributions whether small or large. Consider the tax benefits under the new federal tax laws that are in effect for tax year 2018. Many of us at this age no longer itemize deductions a...
by David Jay
Sat Aug 11, 2018 6:18 pm
Forum: Investing - Help with Personal Investments
Topic: Voo inferior to Vti?
Replies: 5
Views: 749

Re: Voo inferior to Vti?

Is holding VOO long term jeopardizing my return because of the 5 basis point cost difference? NO! As others have said, Morningstar does not sound accurate. Even if it is accurate, 5 basis points costs your portfolio a grand total of $50 for every 100,000 invested in the funds. So 5 basis points is ...
by David Jay
Sat Aug 11, 2018 10:53 am
Forum: Investing - Help with Personal Investments
Topic: ESOP payout
Replies: 6
Views: 418

Re: ESOP payout

Welcome to the forum. I love the LIfeStrategy Funds, ultimate in simplicity without the TargetRetirement continually changing AA. I have my “legacy” funds (what I expect to leave for the kids) in LS Growth.
by David Jay
Sat Aug 11, 2018 10:37 am
Forum: Personal Finance (Not Investing)
Topic: Sucking up to make more money?
Replies: 46
Views: 1995

Re: Sucking up to make more money?

...but you're obviously very unhappy and need to change your circumstances. Luckily with your background, you can probably be "in charge" somewhere within a day or two... But then, of course, the question will be whether all the people within your organization will choose to “butt heads” with you w...
by David Jay
Sat Aug 11, 2018 10:24 am
Forum: Personal Finance (Not Investing)
Topic: Comfortably Retired and charity giving?
Replies: 25
Views: 1984

Re: Comfortably Retired and charity giving?

jdb wrote:
Fri Aug 10, 2018 6:58 pm
100% of my annual RMD through QCDs to qualified charities.
THIS!

Up to $100,000 per year (each if you both have qualifying accounts):
1. It meets (or counts towards) your RMD requirement
2. It does not count as MAGI for means-tested programs (SS taxability, Medicare premium levels, etc.).
by David Jay
Fri Aug 10, 2018 11:33 am
Forum: Investing - Help with Personal Investments
Topic: Mutual funds / market correction
Replies: 13
Views: 1064

Re: Mutual funds / market correction

I am concerned that if I don't wait for a market correction, I would lose the opportunity to have more buying power, hence higher returns. To turn the question around: Are you concerned that if you wait for a market correction and the market correction doesn't come for some years, you will lose the...
by David Jay
Fri Aug 10, 2018 11:27 am
Forum: Investing - Help with Personal Investments
Topic: Does it matter which mutual fund goes into my Roth IRA vs. Traditional IRA?
Replies: 8
Views: 403

Re: Does it matter which mutual fund goes into my Roth IRA vs. Traditional IRA?

There's a WIKI for that: https://www.bogleheads.org/wiki/Tax-efficient_fund_placement Quick summary: 1. Place the funds which are likely to experience the most growth (i.e. 100% stock funds) in Roth, as you will never pay taxes on any of the gains. 2. Place those funds that are likely to experience ...
by David Jay
Thu Aug 09, 2018 6:47 pm
Forum: Investing - Theory, News & General
Topic: "Don't Obsess About Expense Ratios"
Replies: 240
Views: 20449

Re: "Don't Obsess About Expense Ratios"

To me it's simple. Invest with a company that has always kept their fees as low as they can & bonus their employees for helping to lower these fees. ORRRR invest with a company that lowers their fees to try to steal another company's loyal and not-so-loyal clients, in the hopes that these clients m...
by David Jay
Thu Aug 09, 2018 6:36 pm
Forum: Investing - Theory, News & General
Topic: "Don't Obsess About Expense Ratios"
Replies: 240
Views: 20449

Re: "Don't Obsess About Expense Ratios"

To me it's simple. Invest with a company that has always kept their fees as low as they can & bonus their employees for helping to lower these fees. ORRRR invest with a company that lowers their fees to try to steal another company's loyal and not-so-loyal clients, in the hopes that these clients m...
by David Jay
Wed Aug 08, 2018 7:00 pm
Forum: Investing - Help with Personal Investments
Topic: ESOP - Diversification options
Replies: 11
Views: 643

Re: ESOP - Diversification options

I would do the full 50% without the slightest hesitation. It isn’t about “performance”, it is about RISK . Right now you two have horribly concentrated risk. Two thirds of your retirement portfolio and both of your jobs are dependent on one company. There were hundreds of Worldcom employees who were...
by David Jay
Wed Aug 08, 2018 3:24 pm
Forum: Personal Consumer Issues
Topic: Cell phone battery pack, cancer warning?
Replies: 15
Views: 875

Re: Cell phone battery pack, cancer warning?

In California, everything causes cancer.

You'd be a lot safer living somewhere else... :wink:
by David Jay
Wed Aug 08, 2018 2:45 pm
Forum: Investing - Theory, News & General
Topic: If it were March, 2000, would you still allocate 50% to Stocks?
Replies: 94
Views: 4314

Re: If it were March, 2000, would you still allocate 50% to Stocks?

I was 100% stocks in 2000 and in 2008. Grin and bear it. Had quite a bit bigger nest egg in 2008, so the pain was greater. I tossed my Roth and 401K statements in a pile on the desk unopened. Knew it was down, didn't need to see how much. Since coming to BH, I learned about rebalancing. It would hav...
by David Jay
Wed Aug 08, 2018 2:38 pm
Forum: Personal Finance (Not Investing)
Topic: Company Transition to ESOP?
Replies: 24
Views: 1466

Re: Company Transition to ESOP?

Towards the end of my career there, there was tremendous concern by employees at how they were going to get this wealth of money tied up in stocks out. The rules changed from a lump sum payment to a payment stretched over five years. This made people nervous since a lot could happen in five years.....
by David Jay
Tue Aug 07, 2018 7:59 pm
Forum: Investing - Help with Personal Investments
Topic: Help me understand a 'Life Income Plan' ?
Replies: 19
Views: 1810

Re: Help me understand a 'Life Income Plan' ?

Jane Quinn Bryant says: “Never buy anything you can’t explain to a relatively intelligent 12 year old.
by David Jay
Tue Aug 07, 2018 7:52 pm
Forum: Investing - Help with Personal Investments
Topic: Premium Financed Indexed Life Insurance Policies
Replies: 14
Views: 850

Re: Premium Financed Indexed Life Insurance Policies

andy2012 wrote:
Sat Aug 04, 2018 11:34 pm
My insurance agent wants to sell a $10million premium financed insurance policy...
I’LL BET HE DOES!
by David Jay
Tue Aug 07, 2018 7:39 pm
Forum: Personal Finance (Not Investing)
Topic: Company Transition to ESOP?
Replies: 24
Views: 1466

Re: Company Transition to ESOP?

[edit] How about a shared-finance arrangement where you borrow a portion from the bank and self-finance a portion. That way the shareholders get some cash out initially while retaining the flexibility and incentive to complete the payoff? I like the idea. Have others done this? My concern is that i...
by David Jay
Tue Aug 07, 2018 3:54 pm
Forum: Personal Finance (Not Investing)
Topic: Company Transition to ESOP?
Replies: 24
Views: 1466

Re: Company Transition to ESOP?

Employee Stock Ownership Program
by David Jay
Tue Aug 07, 2018 12:50 pm
Forum: Personal Finance (Not Investing)
Topic: Company Transition to ESOP?
Replies: 24
Views: 1466

Re: Company Transition to ESOP?

We would self finance the payout to existing shareholders ($150M-$250M) Wow! No way I would support that - have 100% of the value of my shares in a loan to the company. Way too much risk. The company is profitable, but what if another 9/11 hits the day after you file. I would definitely do a bank l...
by David Jay
Tue Aug 07, 2018 11:42 am
Forum: Investing - Help with Personal Investments
Topic: Satisfying the 5 year rules for ROTH IRAs
Replies: 12
Views: 1475

Re: Satisfying the 5 year rules for ROTH IRAs

Glad to help.

Hope you hang around and participate on the forum.
by David Jay
Tue Aug 07, 2018 8:19 am
Forum: Investing - Help with Personal Investments
Topic: Satisfying the 5 year rules for ROTH IRAs
Replies: 12
Views: 1475

Re: Satisfying the 5 year rules for ROTH IRAs

I opened a ROTH IRA at Brokerage "A" in 2000....I'm now sixty. Your IRA is more than 5 tax years old and you are more than 59.5 years old. You are done with clocks for your Roth IRA(s). All the IRA money can be withdrawn whenever you want with no penalty or tax. Good catch. My "Qualified" is a term...
by David Jay
Tue Aug 07, 2018 8:08 am
Forum: Investing - Help with Personal Investments
Topic: Satisfying the 5 year rules for ROTH IRAs
Replies: 12
Views: 1475

Re: Satisfying the 5 year rules for ROTH IRAs

You fall into the last category. Over 59.5 and more than 5 years since you opened your first Roth (1999 tax year). All distributions are qualified. Period.
by David Jay
Tue Aug 07, 2018 8:06 am
Forum: Investing - Help with Personal Investments
Topic: Satisfying the 5 year rules for ROTH IRAs
Replies: 12
Views: 1475

Re: Satisfying the 5 year rules for ROTH IRAs

There are actually multiple "clocks": 1. Age 59.5 2. 5 years after opening your first Roth (this is a one-time clock - if you have had any Roth open for 5 years this clock is met) 3. 5 year conversion holding period (this clock starts at each conversion and covers only the actual assets converted on...