Search found 2616 matches

by David Jay
Sun Feb 26, 2017 6:20 pm
Forum: Investing - Help with Personal Investments
Topic: Vanguard vs Schwab vs Zacks? Any experiences?
Replies: 28
Views: 1008

Re: Vanguard vs Schwab vs Zacks? Any experiences?

Livesoft, Zacks told me here is what they will use as ETFs, Does this look good to you? SPY -- U.S. Large Company Stocks SPDR® S&P 500 ETF IJR -- U.S. Small Company Stocks IShares Core S&P Small Cap IEFA -- International Developed Large Company Stocks IShares Core MSCI EAFE VSS -- Internati...
by David Jay
Sun Feb 26, 2017 5:13 pm
Forum: Investing - Help with Personal Investments
Topic: Transition from Edward Jones to Vanguard
Replies: 6
Views: 348

Re: Transition from Edward Jones to Vanguard

Do it with Vanguard's help. Give them a call, they will be motivated to help because they are receiving the account. In the case of the Roth accounts, they can move them without any need for you to talk to EJ. I do not know about the SEP - talk to Vanguard.
by David Jay
Sun Feb 26, 2017 4:59 pm
Forum: Investing - Help with Personal Investments
Topic: Splice investing
Replies: 4
Views: 219

Re: Splice investing

TargetRetirement or LifeStrategy until you have enough to do your tilted portfolio in Admiral funds.

At your stage of investing, the largest determinant of outcome is the size of your contributions, not the structure of your portfolio.
by David Jay
Sun Feb 26, 2017 4:45 pm
Forum: Investing - Help with Personal Investments
Topic: Vanguard vs Schwab vs Zacks? Any experiences?
Replies: 28
Views: 1008

Re: Vanguard vs Schwab vs Zacks? Any experiences?

Like "tj" above, I have never heard of Zacks. I would do some serious investigation before I gave $50,000 to a little known company.

Vanguard, Schwab, Fidelity and TDA are the only places that I would consider using.
by David Jay
Sat Feb 25, 2017 5:07 pm
Forum: Personal Finance (Not Investing)
Topic: 10 yr. term life policy for soon to be 57 yr old.
Replies: 6
Views: 673

Re: 10 yr. term life policy for soon to be 57 yr old.

Does your employer offer add-on life insurance? It may be lower cost because of your age (typically price of employer sponsored life is the same for all employees regardless of age). I would also look at some of the options (like - increasing term) to keep your cost lower with the expectation that y...
by David Jay
Sat Feb 25, 2017 4:43 pm
Forum: Investing - Theory, News & General
Topic: Rebalancing frequency - Balanced funds
Replies: 10
Views: 679

Re: Rebalancing frequency - Balanced funds

I have seen studies comparing quarterly, annual and band-based rebalancing. I have never seen a study of daily balancing.
by David Jay
Sat Feb 25, 2017 2:35 pm
Forum: Investing - Theory, News & General
Topic: Buffett Annual Letter 2016 [Jack Bogle is a hero]
Replies: 61
Views: 3762

Re: Warren Buffet says Jack Bogle is a hero.

Well deserved kudos from a valuable source. I often reflect on this decision made by Bogle to organize his company for the benefit of the shareholder. I'd like to read in his words what thinking went into it. Does anyone know of a resource? Thanks. "John Bogle and the Vanguard Experiment"...
by David Jay
Sat Feb 25, 2017 10:36 am
Forum: Investing - Help with Personal Investments
Topic: Bogleheads' Philosophy a Generalization?
Replies: 49
Views: 2191

Re: Bogleheads' Philosophy a Generalization?

Vision: A year ago (or thereabouts) shortly after reading Bernstein's "4 Pillars", I proposed a guaranteed losing portfolio as an illustration of choosing the "best" funds based on past performance: Every January, sell all your funds and purchase the "Top 10" performing...
by David Jay
Sat Feb 25, 2017 10:13 am
Forum: Personal Finance (Not Investing)
Topic: Social Security reps keep disputing advice given in this forum
Replies: 20
Views: 3499

Re: Social Security reps keep disputing advice given in this forum

Mike Piper (two posts up) literally "wrote the book" on Social Security - I have it on my Kindle.

Follow his advice.
by David Jay
Sat Feb 25, 2017 10:08 am
Forum: Personal Finance (Not Investing)
Topic: Another milestone post
Replies: 29
Views: 1430

Re: Another milestone post

One of the great features of BH is that we can celebrate each other's milestones.

Often, there is not even anyone in our extended family with whom we can share our financial success.
by David Jay
Sat Feb 25, 2017 10:05 am
Forum: Personal Finance (Not Investing)
Topic: Annuities vs bonds
Replies: 22
Views: 741

Re: Annuities vs bonds

Are those "okay" in any circumstances? You have been around BH for a few months. So you know how we feel about fund expenses. We run yelling and screaming away from a mutual fund with an ER that is even 1%. Typical annuity expenses are about 2.5% per year. I think it's assumed the OP is t...
by David Jay
Sat Feb 25, 2017 9:56 am
Forum: Personal Finance (Not Investing)
Topic: Annuities vs bonds
Replies: 22
Views: 741

Re: Annuities vs bonds

Incendiary wrote:Yes, but why buy even a spia instead of just purchasing the equivalent in bonds? You are getting that you will live longer than they expect?


An SPIA is valuable because of mortality credits. It protects the income stream for a person with longevity that is much longer than average.
by David Jay
Sat Feb 25, 2017 9:54 am
Forum: Personal Finance (Not Investing)
Topic: Annuities vs bonds
Replies: 22
Views: 741

Re: Annuities vs bonds

Incendiary wrote:Are those "okay" in any circumstances?


You have been around BH for a few months. So you know how we feel about fund expenses. We run yelling and screaming away from a mutual fund with an ER that is even 1%.

Typical annuity expenses are about 2.5% per year.
by David Jay
Sat Feb 25, 2017 9:43 am
Forum: Personal Finance (Not Investing)
Topic: Annuities vs bonds
Replies: 22
Views: 741

Re: Annuities vs bonds

autopeep wrote:There are situations where single premium immediate annuities (SPIA) make sense.


OP may not be familiar with the details of annuities, but the SPIA is used in retirement to create/supplement an income stream. Not appropriate for an accumulation portfolio.
by David Jay
Sat Feb 25, 2017 9:29 am
Forum: Investing - Help with Personal Investments
Topic: Why not more Consumer Staples in Portfolio?
Replies: 9
Views: 389

Re: Why not more Consumer Staples in Portfolio?

Every sector has periods of outperformance. Usually just before periods of underperformance.

I can't pick those periods, so I own the haystack. See my signature.
by David Jay
Fri Feb 24, 2017 4:15 pm
Forum: Investing - Theory, News & General
Topic: Market Run Ups - Now vs. Then
Replies: 76
Views: 4309

Re: Market Run Ups - Now vs. Then

Call_Me_Op wrote:Historically, crashes don't happen when people are fearful (like they are now). Usually, people are greedy and think "it is different this time." I think we have a way to go.


This.
by David Jay
Fri Feb 24, 2017 2:07 pm
Forum: Investing - Help with Personal Investments
Topic: Help With Asset Allocation
Replies: 3
Views: 319

Re: Help With Asset Allocation

Here is a starting point, I am assuming that the 401K is much larger than the taxable account: 401K VOO 45% VTV 10% VEA 15% VWO 5% BND 25% Taxable VTSAX 75% VSMAX 25% (alternate: VSIAX) [edit] I put small cap in taxable because I do not know enough about the iShares small cap to recommend it. Also, ...
by David Jay
Fri Feb 24, 2017 1:59 pm
Forum: Investing - Help with Personal Investments
Topic: Help With Asset Allocation
Replies: 3
Views: 319

Re: Help With Asset Allocation

First off, one should look at a portfolio as a single entity. If you want 20% bonds, it doesn't matter if they are in your 401K or taxable. It would be completely acceptable to hold as much of (pick one: international, small cap, etc.) in one account, including 100%. Bonds should be 100% in tax-adva...
by David Jay
Fri Feb 24, 2017 9:55 am
Forum: Investing - Help with Personal Investments
Topic: Company merger, rolling 401K to IRA
Replies: 19
Views: 429

Re: Company merger, rolling 401K to IRA

My wife works for a fortune 15 company that is going through a merger. She can roll the old 401k balance into a Traditional IRA without penalty but the company advisors are strongly recommending to roll it to the new 401K or she wont get the company match . If the match is on contributions, why doe...
by David Jay
Fri Feb 24, 2017 9:53 am
Forum: Personal Finance (Not Investing)
Topic: Home Mortgage
Replies: 5
Views: 429

Re: Home Mortgage

Compare Quicken Loans (online) if you want an additional data point. They are becoming a major mortgage lender.
by David Jay
Thu Feb 23, 2017 10:55 pm
Forum: Personal Finance (Not Investing)
Topic: How to value this business?
Replies: 4
Views: 466

Re: How to value this business?

Just under 1x sales, just over 3x profits. Based on RandomGuy's comments, it looks like the offer is within the range of consideration.
by David Jay
Thu Feb 23, 2017 8:30 pm
Forum: Personal Finance (Not Investing)
Topic: Paying Extra Principal on Mortgage - How is this reflected?
Replies: 8
Views: 725

Re: Paying Extra Principal on Mortgage - How is this reflected?

Typically If you tell them that you want to make a principle payment , they will credit the entire payment to principle and you will STILL need to make the regular March payment as well. So it would look like this: Feb. 2018 Payment: $655 Interest; $300 Principal; Balance: $196,178. Principle Paymen...
by David Jay
Thu Feb 23, 2017 5:47 pm
Forum: Investing - Theory, News & General
Topic: Taking profits
Replies: 12
Views: 1146

Re: Taking profits

The only way to "take money off the table" is to sell shares.

ETFs are traded just like stock, you must sell shares to benefit from share price appreciation.
by David Jay
Thu Feb 23, 2017 3:45 pm
Forum: Investing - Help with Personal Investments
Topic: trading with ira
Replies: 8
Views: 337

Re: trading with ira

It only changes things if you sell or buy the same stock in your taxable account within 30 days (google: "wash sale"). As long as you do not trade that same stock in taxable within 30 days, there is no regulatory problem with repeated buying and selling of the same stock in an IRA. While ...
by David Jay
Thu Feb 23, 2017 3:38 pm
Forum: Investing - Help with Personal Investments
Topic: Stay in cash until rates rise?
Replies: 27
Views: 2399

Re: Stay in cash until rates rise?

If you are concerned about rising rates, put it in a Short Term bond fund. A ST bond fund will turn over the holdings in a year (nominal) so you will be receiving market yield quite quickly. I would not recommend remaining in cash. You may never get "back in", perennially worried that inte...
by David Jay
Thu Feb 23, 2017 2:11 pm
Forum: Personal Finance (Not Investing)
Topic: Line of credit
Replies: 2
Views: 201

Re: Line of credit

A home equity line of credit (HELOC) is staightforward. If your mortgage is with a bank, go talk to them. I have my mortgage through the credit union and also my HELOC. MY HELOC is a 10 year term, so I can draw at any time with just a quick call/visit to my CU. I use it for simple, personal cash flo...
by David Jay
Thu Feb 23, 2017 2:03 pm
Forum: Investing - Help with Personal Investments
Topic: trading with ira
Replies: 8
Views: 337

Re: trading with ira

I also still have that same stock in my regular trading account. does this change anything? It only changes things if you sell or buy the same stock in your taxable account within 30 days (google: "wash sale"). As long as you do not trade that same stock in taxable within 30 days, there i...
by David Jay
Thu Feb 23, 2017 1:47 pm
Forum: Personal Finance (Not Investing)
Topic: How to model/pay for serial conversion of [Large] IRAs--HELOC?
Replies: 5
Views: 308

Re: How to model/pay for serial conversion of [Large] IRAs--HELOC?

I would look at the other end of the spectrum to determine the course of action. RMDs go up with age (actually, with inverse of life expectancy) - Uncle Sam would prefer that you pay tax on all of it before you die. RMD at age 70.5 is only 3.6 % of your portfolio. It is up to 5.3% at age 80 and 9.3%...
by David Jay
Thu Feb 23, 2017 1:32 pm
Forum: Investing - Help with Personal Investments
Topic: Retirement and Taxable Portfolio Review
Replies: 2
Views: 248

Re: Retirement and Taxable Portfolio Review

I am not a Federal employee, but everything I hear is that TSP has excellent choices with low costs. I would put as much as possible there. Not much you can do to simplify, I don't believe that you can move Roth to TSP. The "I" in IRA stands for "individual" - no way to merge his...
by David Jay
Thu Feb 23, 2017 1:27 pm
Forum: Investing - Help with Personal Investments
Topic: Investment [determining risk tolerance?]
Replies: 6
Views: 340

Re: Investment [determining risk tolerance?]

Here is a nice chart to give you a feel for how various portfolios have fluctuated in the past: https://www.vanguard.com/us/insights/sa ... llocations

As you can see, more stocks - more volatility, more bonds - lower growth
by David Jay
Thu Feb 23, 2017 1:22 pm
Forum: Investing - Help with Personal Investments
Topic: Expense Ratio reported via 401k and Morningstar differ
Replies: 1
Views: 116

Re: Expense Ratio reported via 401k and Morningstar differ

Probably #2 - there is a cost to run a 401K program. Some companies pay it all. Some don't and the custodian takes some out a bit to cover expenses, it should be explained in your plan documents (see your HR dept.)
by David Jay
Thu Feb 23, 2017 1:17 pm
Forum: Investing - Help with Personal Investments
Topic: Re-balancing Help
Replies: 16
Views: 490

Re: Re-balancing Help

Great - just be consistent to follow through.

(the one advantage of the yearly check is that you remember to do it. Lots of people make it their birthday or something like that)
by David Jay
Thu Feb 23, 2017 11:26 am
Forum: Investing - Help with Personal Investments
Topic: Re-balancing Help
Replies: 16
Views: 490

Re: Re-balancing Help

I may have explained one thing wrong. My desired asset allocation is actually 64% stock, 16% international stock, and 20% bond. I am wanting 20% of my total stock to be international. With that being said should I rebalance when I am 5% away from the 16% or the 20%, regarding international. I was t...
by David Jay
Thu Feb 23, 2017 11:16 am
Forum: Investing - Theory, News & General
Topic: Why TBM (total bond market)?
Replies: 17
Views: 2243

Re: Why TBM (total bond market)?

Of course, figuring out when rates are going to rise or fall is extremely hard, at least as hard as guessing when stocks are going to go up. Arguably more difficult since stocks spend most of their time going up. Is that really true though? I have no idea what the stock market is going to do for th...
by David Jay
Wed Feb 22, 2017 9:17 pm
Forum: Investing - Theory, News & General
Topic: Bond index for specific firm.
Replies: 10
Views: 485

Re: Bond index for specific firm.

You aren't easily dissuaded, are you?
by David Jay
Wed Feb 22, 2017 9:01 pm
Forum: Investing - Theory, News & General
Topic: Bond index for specific firm.
Replies: 10
Views: 485

Re: Bond index for specific firm.

hmph wrote:Assuming a firm's stock price today reflects the future discounted cash-flow from owning the stock


Where did you get that assumption? Out of an old Benjamin Graham book?
by David Jay
Wed Feb 22, 2017 8:48 pm
Forum: Investing - Help with Personal Investments
Topic: AXA Annuity getting fleeced- switch to Vanguard?
Replies: 14
Views: 734

Re: AXA Annuity getting fleeced- switch to Vanguard?

This GB AXA Moderate Growth Strategy that I'm in is not available on Vanguard. If I do an in-kind transfer, is it going to make me sell whichever of the 100+ funds within it that Vanguard does not have? This could end up being a lot of money I think. You need to surrender the annuity. That will giv...
by David Jay
Wed Feb 22, 2017 4:40 pm
Forum: Investing - Theory, News & General
Topic: Bond index for specific firm.
Replies: 10
Views: 485

Re: Bond index for specific firm.

You are free to research this, but the debt markets do not operate like the equity markets. I think that you will find that in developed countries, debt rating agencies make company-to-company variations minimal for the "same" debt instrument ("same" would have to include: durati...
by David Jay
Wed Feb 22, 2017 4:19 pm
Forum: Investing - Help with Personal Investments
Topic: VTSAX vs FSTVX
Replies: 10
Views: 624

Re: VTSAX vs FSTVX

NAV (net asset value) means NOTHING. It is just the "chunk" that each company uses for you purchase and track your purchases.

For example:

Gasoline $ 3.00 / gallon
Gasoline $ 0.7926 / liter

Is there a discrepancy?
by David Jay
Wed Feb 22, 2017 3:53 pm
Forum: Personal Consumer Issues
Topic: Help Please, My Identity is at Risk
Replies: 14
Views: 1610

Re: Help Please, My Identity is at Risk

windrider wrote:Not a help once things are stolen, but I've found a password manager very helpful for the bulk of my passwords. I remember the password to unlock the file, but keep the rest of my passwords there.


This.
by David Jay
Wed Feb 22, 2017 3:33 pm
Forum: Personal Finance (Not Investing)
Topic: BH thoughts on Time shares
Replies: 103
Views: 5764

Re: BH thoughts on Time shares

If you would utilize it, the annual fees are not excessive versus the rental value. You can pick up a timeshare for next to nothing on the open market. There are websites that specialize in selling timeshares, such as redweek. I looked up Myrtle Beach. Five star timeshares for $100 and up. The hundr...
by David Jay
Wed Feb 22, 2017 1:40 pm
Forum: Investing - Help with Personal Investments
Topic: AXA Annuity getting fleeced- switch to Vanguard?
Replies: 14
Views: 734

Re: AXA Annuity getting fleeced- switch to Vanguard?

Rabbit:

Mel has written extensively on insurance and annuities. He was the forum member I was hoping would show up and comment. :happy

David
by David Jay
Wed Feb 22, 2017 12:56 pm
Forum: Investing - Help with Personal Investments
Topic: TSM vs SP500+Ext
Replies: 2
Views: 188

Re: TSM vs SP500+Ext

I would do it just on philosophical grounds. Total stock more accurately reflects market return (and does so without maintenance) than varying percentages of SP500+Ext.

And you save a few bucks in the process. As you said, there are no tax implications in an IRA. Go for it.
by David Jay
Wed Feb 22, 2017 12:43 pm
Forum: Investing - Help with Personal Investments
Topic: AXA Annuity getting fleeced- switch to Vanguard?
Replies: 14
Views: 734

Re: Roth getting fleeced by AXA- switch to Vanguard?

You may want to edit the subject line to "AXA Annuity" - that will likely get you more views from the people who know annuities.
by David Jay
Wed Feb 22, 2017 11:45 am
Forum: Investing - Help with Personal Investments
Topic: How do you rank different diversifiers?
Replies: 5
Views: 427

Re: How do you rank different diversifiers?

I don't know if we are over-simplifying (it's hard to tell from a forum posting) but for US stocks, Total Stock already holds all market segments at market weights. So Total Stock will best approximate the total US stock market performance. Adding one of the segment funds (Large Cap, Mid-Cap, Small-...
by David Jay
Wed Feb 22, 2017 11:13 am
Forum: Investing - Help with Personal Investments
Topic: Re-balancing Help
Replies: 16
Views: 490

Re: Re-balancing Help

You have answered your own question - international is 4.19% (20-15.81) below target, so you don't rebalance because it is not 5% less than the target allocation. If it was 5.1% below, you would sell Total Stock (because your stock percentage is also higher than target) and buy international. If sto...
by David Jay
Wed Feb 22, 2017 11:08 am
Forum: Investing - Theory, News & General
Topic: Bond fund newbie questions
Replies: 4
Views: 312

Re: Bond fund newbie questions

My "aha" moment came here on BH when I was asking if I should sell Total Bond because the FED would likely interest rates at the next meeting (a few days away). The other poster asked me this great question: " What do you know that other bond investors don't know? " That set me b...
by David Jay
Wed Feb 22, 2017 11:01 am
Forum: Investing - Help with Personal Investments
Topic: Re-balancing Help
Replies: 16
Views: 490

Re: Re-balancing Help

Do you have an IPS? Or at least a written rebalancing plan? This is vital to avoiding emotional reactions to market conditions. You need to read up on rebalancing and write out your rebalancing strategy in advance. Then follow it. In your strategy write-up: How often do I check? (fearful and/or hand...

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