Search found 2973 matches

by David Jay
Wed Apr 26, 2017 2:48 pm
Forum: Investing - Theory, News & General
Topic: Retired, but postponing Social Security.
Replies: 17
Views: 1236

Re: Retired, but postponing Social Security.

But one thing you need to account for is what happens to the survivor's income when the first of you dies. The survivor will lose one of the SS payments, the pension amount may change, and the marginal tax rates for a single person are different. That is a good point. There is a strategy that has t...
by David Jay
Wed Apr 26, 2017 2:40 pm
Forum: Investing - Theory, News & General
Topic: Are ER for mutual funds < ER for ETF?
Replies: 11
Views: 1076

Re: Are ER for mutual funds < ER for ETF?

That chart is looking at industry-wide averages. It really does not answer any questions about specific products. For instance, company "A" may offer only ETFs and company "B" may offer only mutual funds, but both are included in the averages even though neither company offers pr...
by David Jay
Wed Apr 26, 2017 1:18 pm
Forum: Investing - Theory, News & General
Topic: Retired, but postponing Social Security.
Replies: 17
Views: 1236

Re: Retired, but postponing Social Security.

Perhaps the best "longevity insurance" available is to delay SS. It is an 8%, inflation protected increase for every year you delay after FRA.
by David Jay
Wed Apr 26, 2017 12:22 pm
Forum: Investing - Theory, News & General
Topic: Retired, but postponing Social Security.
Replies: 17
Views: 1236

Re: Retired, but postponing Social Security.

...am I going to regret waiting if that continues to decline? Your future benefit will only be affected if you go back to work. The key calculation for your PIA took place at your age 60 and it will not change unless you replace one of your (low) Top 35 years with a new, higher earning year. The es...
by David Jay
Wed Apr 26, 2017 12:10 pm
Forum: Investing - Theory, News & General
Topic: Retired, but postponing Social Security.
Replies: 17
Views: 1236

Re: Retired, but postponing Social Security.

I built a spreadsheet that can give you an exact PIA (Primary insurance amount) if you want to get your earnings history from the SS website and send the earnings to me in a Private Message. I would need the year and the earnings for your every year of your working life in this format: 1972 $5280 19...
by David Jay
Wed Apr 26, 2017 12:05 pm
Forum: Investing - Theory, News & General
Topic: Retired, but postponing Social Security.
Replies: 17
Views: 1236

Re: Retired, but postponing Social Security.

The numbers you are looking at are estimates , it is not possible to know what your exact benefit will be at age 66 (or age 70) in advance. Your benefit will go up with inflation (CPI-W) each year. You will get the same inflation adjustment as someone your age who took benefits at age 62. For exampl...
by David Jay
Wed Apr 26, 2017 11:49 am
Forum: Investing - Help with Personal Investments
Topic: My girlfriend and her 401K, need to give her advice
Replies: 11
Views: 718

Re: My girlfriend and her 401K, need to give her advice

The question as to whether she wants your advice (or not) is a good one. But if she does, I agree with Rick Ferri that a 30/70 portfolio is an excellent retirement choice (he calls it the "sweet spot) for a conservative personality. If her 401K offers Target Date funds, she may be able to selec...
by David Jay
Wed Apr 26, 2017 11:39 am
Forum: Investing - Theory, News & General
Topic: Article on Vanguard Total Stock Market
Replies: 5
Views: 1029

Re: Article on Vanguard Total Stock Market

This guy gives a different diversification philosophy. Actually, the author is not talking about diversification . The word [diverse...] is not found in the article. TSM is fully diversified in US stocks. The author is looking for return , and he rightly (if one follows French-Fama) suggests that V...
by David Jay
Tue Apr 25, 2017 10:34 pm
Forum: Personal Finance (Not Investing)
Topic: Married couple: gift tax - source of funds relevant?
Replies: 17
Views: 944

Re: Married couple: gift tax - source of funds relevant?

I do not believe that the source of funds matters (money is fungible) but I am not 100% certain. Do you file jointly? If so then I am confident there is no issue. You give your niece $14,000, your spouse gives her $6,000. Two checks is probably a good idea. BTW, you can give more than $14,000 withou...
by David Jay
Tue Apr 25, 2017 7:08 pm
Forum: Investing - Help with Personal Investments
Topic: Diversification of IRA
Replies: 5
Views: 300

Re: Diversification of IRA

The LifeStrategy family of funds are actually hold (4) underlying funds: Total US Stock, Total International Stock, Total US bond and Total International bond. So you are fully diversified across the whole world's stocks and bonds in one "wrapper".
by David Jay
Tue Apr 25, 2017 1:15 pm
Forum: Investing - Help with Personal Investments
Topic: Expenses Question
Replies: 11
Views: 647

Re: Expenses Question

Can your provider add an "in service distribution" to your plan? This would allow you to move some of your balance to an IRA as a roll-over.
by David Jay
Tue Apr 25, 2017 12:30 pm
Forum: Investing - Help with Personal Investments
Topic: New to investing [Any tax-advantaged accounts available to us?]
Replies: 5
Views: 221

Re: New to investing [Any tax-advantaged accounts available to us?]

You can clearly access a backdoor Roth for your (soon to be) spouse. You deposit after-tax dollars in the spouse's tIRA and do a conversion to Roth. No immediate tax advantage, but the assets in a Roth grow tax free and are withdrawn tax free in retirement (after 59 1/2). If you roll your existing t...
by David Jay
Tue Apr 25, 2017 11:56 am
Forum: Personal Finance (Not Investing)
Topic: First post be gentle... credit card 24 month rule? [cancel then reapply to get the bonus]
Replies: 15
Views: 1045

Re: First post be gentle... credit card 24 month rule? [cancel then reapply to get the bonus]

First off, welcome to the forum. You will find a lot of knowledge about investing (and a lot of opinions on lifestyle :happy ) I can't provide any specific help, but the reason affinity cards offer the bonuses is to attract new customers. The intent of the bonuses is not to recycle existing customer...
by David Jay
Tue Apr 25, 2017 11:35 am
Forum: Investing - Help with Personal Investments
Topic: One Fund? Really?
Replies: 34
Views: 3540

Re: One Fund? Really?

Pax wrote:(5) AA of 70/30
I need to work on this. Maybe 60 stocks/ 30 bonds or 50/50?


If you choose 60/30, can I have the extra 10%? :D
by David Jay
Mon Apr 24, 2017 7:03 pm
Forum: Investing - Theory, News & General
Topic: Splitting Growth And Value Leads To A Worse Return
Replies: 35
Views: 4721

Re: Splitting Growth And Value Leads To A Worse Return

During the period of your back test Growth outperformed. So any portfolio that held more Growth performed better.

That is one of the limitations of back testing. Did you notice "Note 1" on PV?
by David Jay
Mon Apr 24, 2017 3:58 pm
Forum: Investing - Theory, News & General
Topic: Splitting Growth And Value Leads To A Worse Return
Replies: 35
Views: 4721

Re: Splitting Growth And Value Leads To A Worse Return

Sorry Gecko, but your backtest is not looking at the same thing as the original thread. The original thread was comparing Total Market with 50% Value/50% Growth.

Your 3-way backtest is comparing 100% Value with 100% Growth with 50% Value/50% Growth.
by David Jay
Sun Apr 23, 2017 6:55 pm
Forum: Personal Consumer Issues
Topic: Are CCRCs a good deal? [Continuing Care Retirement Community]
Replies: 30
Views: 2428

Re: Are CCRCs a good deal?

No personal experience, but my Dad's lifetime best friend and wife hosted us in their Retirement Community home. They were probably in their late 70s at the time. They were delighted with the facilities and the residents. Complete independence with the assurance of assisted living if/when they neede...
by David Jay
Sun Apr 23, 2017 12:35 pm
Forum: Investing - Theory, News & General
Topic: Vanguard and the Department of Labor Fiduciary Rule Modifications
Replies: 7
Views: 1054

Re: Vanguard and the Department of Labor Fiduciary Rule Modifications

Uncle Pennybags wrote:As a buy-and-hold, asset allocation index investor I don't have a dog in the fight.
Perhaps a better rule would be all "advisors" would have to submit a clients portfolio to this forum for a gentle critique.


Because we are always so gentle... :shock:
by David Jay
Sat Apr 22, 2017 9:30 pm
Forum: Personal Finance (Not Investing)
Topic: please advise- are we on target ?
Replies: 17
Views: 1397

Re: please advise- are we on target ?

Let me give you a framework for thinking through your plans: 1. You need to cover one level of income until the start of Social Security and pension 2. You need to cover a (lower) level of income after the start of SS and pension 3. Use a 4% depletion rate for your portfolio after start of SS/Pensio...
by David Jay
Sat Apr 22, 2017 8:57 am
Forum: Personal Finance (Not Investing)
Topic: Mom's Universal Life Insurance – Keep or not?
Replies: 8
Views: 846

Re: Mom's Universal Life Insurance – Keep or not?

If you are the sole beneficiary of the estate, I have no problem with paying the premiums from your Mom's assets. The insurance was purchased by your Mom so it is a reasonable expectation that she would not want it to lapse and lose all value.
by David Jay
Sat Apr 22, 2017 8:51 am
Forum: Personal Finance (Not Investing)
Topic: Why are pensions revered, but annuities reviled?
Replies: 113
Views: 9020

Re: Why are pensions revered, but annuities reviled?

I read lots of stuff about the good old days when everyone had a pension, but at the same time whenever anyone brings up annuities people's blood starts to boil. I don't get it. It seems to me that upon retirement, converting some portion of your retirement account into an single-premium immediate ...
by David Jay
Sat Apr 22, 2017 8:35 am
Forum: Investing - Theory, News & General
Topic: Tax Deferred vs Taxable Account Calculator?
Replies: 19
Views: 1214

Re: Tax Deferred vs Taxable Account Calculator?

Of course, no taxes are withheld unless you request the broker to do, so the taxable account would also have 57,434.91. You will owe the dividend taxes on your income tax return each year. If you take the taxes out of the taxable account each year to pay the taxes then the account balance will be $5...
by David Jay
Sat Apr 22, 2017 8:03 am
Forum: Investing - Help with Personal Investments
Topic: Should I transfer money from a fund when its near all time high?
Replies: 4
Views: 439

Re: Should I transfer money from a fund when its near all time high?

Aren't all of your stock funds at or near their all-time highs?

Your stock funds should be at or near all-time highs about 60% of the time, on average. Because over the long haul they are on a long term upward trend.
by David Jay
Fri Apr 21, 2017 6:09 pm
Forum: Investing - Help with Personal Investments
Topic: [How do I sell my Roth IRA funds to buy Vanguard?]
Replies: 4
Views: 334

Re: [How do I sell my Roth IRA funds to buy Vanguard?]

Yes, sell them. The money will automatically be deposited in your settlement fund.

Then you purchase the new funds.
by David Jay
Thu Apr 20, 2017 2:39 pm
Forum: Investing - Theory, News & General
Topic: Evaluating my lack of jitters
Replies: 26
Views: 1645

Re: Evaluating my lack of jitters

Even 90/10 is acceptable, but I would strongly recommend having a Bond position so that you can rebalance in a downturn. I am saying this as someone who was 100% equities well into my mid-50s but found that there is great emotional benefit from being able to "do something" to take advantag...
by David Jay
Thu Apr 20, 2017 12:11 pm
Forum: Investing - Help with Personal Investments
Topic: Portfolio Question - Nationwide 457b
Replies: 4
Views: 473

Re: Portfolio Question - Nationwide 457b

The 457 is better than a taxable portfolio, but I would max out your 401K, HSA and IRAs (if you are under the IRA income limit) first. Only contribute money to the 457 that would otherwise go into taxable.

I would keep it really simple, only utilizing the SP500 fund (0.42).
by David Jay
Thu Apr 20, 2017 11:38 am
Forum: Investing - Help with Personal Investments
Topic: AXA index-linked deferred variable annuity
Replies: 11
Views: 844

Re: AXA index-linked deferred variable annuity

I am 58 years old and am investigating a deferred, variable annuity linked to index like S&P500. I see you have not returned to this thread (or made a second post on BH as of today), but if you do read this, here are some specifics that you need to investigate : 1. Get a copy of the prospectus....
by David Jay
Wed Apr 19, 2017 3:06 pm
Forum: Investing - Help with Personal Investments
Topic: Fidelity ethics moving to Vanguard
Replies: 35
Views: 3803

Re: Fidelity ethics moving to Vanguard

Danya wrote:Right now I'm about 30-40 funds at 2 managed brokerages (1%)

:shock:
by David Jay
Wed Apr 19, 2017 2:06 pm
Forum: Personal Finance (Not Investing)
Topic: Financial Armageddon Insurance - how to spend $100k
Replies: 29
Views: 2447

Re: Financial Armageddon Insurance - how to spend $100k

Have you read Bernstein's "Deep Risk"?

It discusses the "4 Horsemen": Inflation, Deflation, Confiscation and Devastation
by David Jay
Tue Apr 18, 2017 3:45 pm
Forum: Investing - Theory, News & General
Topic: What is the max SS income you could receive this year?
Replies: 38
Views: 4209

Re: What is the max SS income you could receive this year?

With the NAWI (national average wage index) at $46481.52 That is 2014 NAWI. 2015 NAWI is 48,098.63. 2016 NAWI will not be released until September/October timeframe. So we don't yet know the NAWI for someone who turned 60 in 2016 (as my DW did). That's because the date of the post you quoted was ap...
by David Jay
Tue Apr 18, 2017 12:59 pm
Forum: Investing - Help with Personal Investments
Topic: why bond funds are sharply up today?
Replies: 13
Views: 2124

Re: why bond funds are sharply up today?

When the market is down significantly there is often a flight to bonds. Not reliably, but commonly.
by David Jay
Tue Apr 18, 2017 12:56 pm
Forum: Investing - Theory, News & General
Topic: What is the max SS income you could receive this year?
Replies: 38
Views: 4209

Re: What is the max SS income you could receive this year?

Spirit Rider wrote:A small note: Your earnings are only wage-indexed to the age 60 level. After that, your PIA is adjusted by inflation.


Strictly speaking, inflation adjustment begins at age 62, so there is a 2 year inflation adjustment gap. Wage-index adjustment to age 60. CPI-W adjustment beginning @age 62.
by David Jay
Tue Apr 18, 2017 12:49 pm
Forum: Investing - Theory, News & General
Topic: What is the max SS income you could receive this year?
Replies: 38
Views: 4209

Re: What is the max SS income you could receive this year?

Tamales wrote:With the NAWI (national average wage index) at $46481.52

That is 2014 NAWI.
2015 NAWI is 48,098.63. 2016 NAWI will not be released until September/October timeframe. So we don't yet know the NAWI for someone who turned 60 in 2016 (as my DW did).
by David Jay
Tue Apr 18, 2017 12:44 pm
Forum: Investing - Help with Personal Investments
Topic: AXA index-linked deferred variable annuity
Replies: 11
Views: 844

Re: AXA index-linked deferred variable annuity

Bhbop1209 wrote:...to reduce risk of significant loss due to market meltdown, etc?


A 30/70 (30% stocks, 70% bonds) portfolio would be a good way to reduce the risk of significant loss during a market meltdown (it would have only had about a 12% drop in the "meltdown" of the 2008 financial crisis).
by David Jay
Sun Apr 16, 2017 11:59 am
Forum: Investing - Help with Personal Investments
Topic: Procrastinating Investor
Replies: 5
Views: 442

Re: Procrastinating Investor

How do you do it? By doing it. Not by planning to do it. Not by considering how to do it. The enemy of a good plan is the hope for a perfect plan. Specifically - commit to yourself to move 10% of your portfolio balance into a Target 2030 fund every month. If the market drops part way through, you wi...
by David Jay
Sun Apr 16, 2017 11:56 am
Forum: Investing - Help with Personal Investments
Topic: Procrastinating Investor
Replies: 5
Views: 442

Re: Procrastinating Investor

[dup]
by David Jay
Sun Apr 16, 2017 11:43 am
Forum: Investing - Help with Personal Investments
Topic: Help! Dad's Retirement Account with Lincoln Financial Group
Replies: 15
Views: 1964

Re: Help! Dad's Retirement Account with Lincoln Financial Group

When inquiring about 401K withdrawals, the proper term is "in service distribution". So ask the plan administrator if the 401K plan allows for "in service distributions". If they do, he can do a roll-over (sometimes only a partial - it all depends on how the plan is written) into...
by David Jay
Sat Apr 15, 2017 8:09 pm
Forum: Personal Consumer Issues
Topic: Budget multitool knife
Replies: 24
Views: 2044

Re: Budget multitool knife

Don't get a "no-name" multi tool. They will just break when you need it the most (don't ask how I know...)

Get a low price version from Leatherman or Gerber. For example, you can get a Gerber "Suspension" on Amazon for about $30. That is the model that I carry.
by David Jay
Sat Apr 15, 2017 2:48 pm
Forum: Investing - Theory, News & General
Topic: Is there any reason a buy-and-hold investor would buy gold?
Replies: 121
Views: 6157

Re: Is there any reason a buy-and-hold investor would buy gold?

Gold often moves differently than equity, so gold can reduce portfolio volatility. If you are not worried about volatility, you are correct that commodities are strictly speculative investments, commodities have no growth function like earnings and dividends.
by David Jay
Sat Apr 15, 2017 2:42 pm
Forum: Investing - Help with Personal Investments
Topic: VTINX v 3 fund portfolio?
Replies: 7
Views: 596

Re: VTINX v 3 fund portfolio?

If you want to stay 40/60, and like the simplicity of a single fund, I would take a look at LifeStrategy Conservative.

It's a 4-fund portfolio "under the covers", holding Total Stock, Total International Stock, Total Bond and Total International Bond.
by David Jay
Fri Apr 14, 2017 10:01 am
Forum: Investing - Help with Personal Investments
Topic: Best 2050 Target Date Fund
Replies: 20
Views: 1674

Re: Best 2050 Target Date Fund

Whats site does everyone use to compare the funds historical performance taking into account expenses? I've tried a couple, but I havent found one yet that takes into account all associated fees when comparing the funds. :confused Morningstar. You can use the search box at the top for the first fun...
by David Jay
Fri Apr 14, 2017 9:40 am
Forum: Personal Consumer Issues
Topic: iPhone SE on sale at Consumer Cellular for $200
Replies: 4
Views: 653

Re: iPhone SE on sale at Consumer Cellular for $200

I have been very pleased with my "SE", which I purchased about 6 months ago.

I did not want a larger phone because I primarily use my phone to make phone calls.
by David Jay
Thu Apr 13, 2017 11:56 am
Forum: Personal Finance (Not Investing)
Topic: When need and want take different paths.......
Replies: 30
Views: 2244

Re: When need and want take different paths.......

frugalecon wrote:I would probably wait one month before pulling the trigger, to make sure it was really what I wanted.


The 30 day rule has saved me from several bad decisions...
by David Jay
Tue Apr 11, 2017 6:38 pm
Forum: Investing - Help with Personal Investments
Topic: VASGX [Vanguard LifeStrategy Growth Fund] alternative
Replies: 2
Views: 381

Re: VASGX [Vanguard LifeStrategy Growth Fund] alternative

Why did you choose an 80/20 asset allocation when you first invested? What has changed? Most people move to more conservative allocations over time. If you decide that you really want to be 90/10, a TargetRetirement fund uses the same underlying assets as LifeStrategy fund but you can choose one tha...
by David Jay
Tue Apr 11, 2017 6:23 pm
Forum: Personal Finance (Not Investing)
Topic: Dollar amount of fees
Replies: 5
Views: 507

Re: Dollar amount of fees

Your math is correct but ER is the average of costs over the course of the year. It does not necessarily break down evenly by quarter / month / day.
by David Jay
Tue Apr 11, 2017 6:20 pm
Forum: Personal Finance (Not Investing)
Topic: SS question
Replies: 9
Views: 700

Re: SS question

hoops777 wrote:So I did a little research and my full retirement age is 66 so if I am doing this right,with my benefit being about 2450 at 66 it appears that my payment at 70 will still be about 3200.


Your math is correct, 32% higher @ 70 than at 66.
by David Jay
Mon Apr 10, 2017 2:26 pm
Forum: Investing - Help with Personal Investments
Topic: Asset allocation [for 4% withdrawal rate]
Replies: 6
Views: 491

Re: Asset allocation [for 4% withdrawal rate]

Rick Ferri (a very respected source around here) says a 30/70 stock portfolio is the "sweet spot" for retiree portfolios, with lots of safety and enough growth to cover a typical withdrawal strategy. With a 30/70 portfolio, a deep drop in the stock market (40%) would result in a 12% drop i...
by David Jay
Mon Apr 10, 2017 12:51 pm
Forum: Investing - Help with Personal Investments
Topic: Roth IRA - is "self" transfer possible ?
Replies: 9
Views: 402

Re: Roth IRA - is "self" transfer possible ?

A quick question, and one I need to double check before implementing I have a Roth IRA with betterment, which I would like to move to vanguard. For non taxable accounts, betterment typically liquidate the account and then send a check by regular mail (!!) to vanguard, a process which takes consider...
by David Jay
Mon Apr 10, 2017 11:41 am
Forum: Investing - Help with Personal Investments
Topic: Quick double-check on Roth withdrawal rules
Replies: 2
Views: 362

Re: Quick double-check on Roth withdrawal rules

Thanks Alan, I was hoping that you or one of the other experts respond. The only possible but unlikely pitfall is that your 5 year clock cannot start with an excess contribution. Therefore, if your income was too high to make your first Roth contribution, the clock would not start until you made a c...

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