Search found 2803 matches

by David Jay
Thu Mar 23, 2017 9:40 pm
Forum: Investing - Help with Personal Investments
Topic: Thinking about adding a 5% position to commodities
Replies: 7
Views: 426

Re: Thinking about adding a 5% position to commodities

Commodities have no intrinsic growth, it is a zero-sum game. An ounce of silver today is still only an ounce of silver in 10 years.

Bonds pay real interest, stocks have earnings.
by David Jay
Thu Mar 23, 2017 9:19 pm
Forum: Investing - Help with Personal Investments
Topic: Inservice withdrawal to Vanguard question
Replies: 3
Views: 148

Re: Inservice withdrawal to Vanguard question

I have never heard of a rollover that allowed an "in-kind" distribution. I have only seen cash rollovers.

I am not declaring that it is illegal (I don't know the rules) but I have never heard of such.
by David Jay
Thu Mar 23, 2017 8:59 pm
Forum: Investing - Theory, News & General
Topic: AA after reaching your "freedom number"?
Replies: 14
Views: 843

Re: AA after reaching your "freedom number"?

aristotelian wrote:Depends. How will you feel if your $3M drops to $1.5M? Is $3M really your number if it can only provide for you in an aggressive portfolio with no major bear market?


But if he is 50/50, he would,only see a 25% drop with a 50% stock market drop.
by David Jay
Thu Mar 23, 2017 8:36 pm
Forum: Investing - Help with Personal Investments
Topic: Initial investment advice
Replies: 15
Views: 607

Re: Initial investment advice

I definitely understand how term and investments might be superior for the duration of you and your spouse's lifetime. Where they said it was superior was in terms of legacy. I was planning on using the death benefit to give to my children essentially. Would that not be worth the continued payments...
by David Jay
Thu Mar 23, 2017 2:30 pm
Forum: Investing - Help with Personal Investments
Topic: Non-traded REIT - Analyzing how horrible, and trying to get out
Replies: 13
Views: 938

Re: Non-traded REIT - Analyzing how horrible, and trying to get out

And yeah, I'd like to get that ---hole. He was their trusted advisor for 20+ years. I have records of much of their history, and when my grandfather was still alive he didn't pull any crap like this. He did put them in some good investments. But this, and selling a BUNCH of them right when she was ...
by David Jay
Thu Mar 23, 2017 1:09 pm
Forum: Investing - Help with Personal Investments
Topic: Vanguard Noob Question on Selling and Buying
Replies: 7
Views: 455

Re: Vanguard Noob Question on Selling and Buying

BTW I'm a little bit short to make it to Voyager Select I will ask if it makes sense to move some more 401K to get to that level before making my trades? Voyager stock trades are $7, Voyager Select are $2. There may be some benefit on sales of 3rd party mutual funds but I don't know that. If it is ...
by David Jay
Thu Mar 23, 2017 1:05 pm
Forum: Investing - Help with Personal Investments
Topic: Initial investment advice
Replies: 15
Views: 607

Re: Initial investment advice

Please understand, everyone here thinks you should take care of your dependents. Term life can do that economically. With proper investment (in your tax-deferred accounts first) you will no longer need life insurance at some point, so you drop the term coverage. That happened to us at Age 58 - my wi...
by David Jay
Thu Mar 23, 2017 11:54 am
Forum: Investing - Help with Personal Investments
Topic: Non-traded REIT - Analyzing how horrible, and trying to get out
Replies: 13
Views: 938

Re: Non-traded REIT - Analyzing how horrible, and trying to get out

And yeah, I'd like to get that ---hole. He was their trusted advisor for 20+ years. I have records of much of their history, and when my grandfather was still alive he didn't pull any crap like this. He did put them in some good investments. But this, and selling a BUNCH of them right when she was ...
by David Jay
Thu Mar 23, 2017 11:42 am
Forum: Investing - Help with Personal Investments
Topic: Will new index funds ever come out?
Replies: 12
Views: 1265

Re: Will new index funds ever come out?

I only make 20k a year now. OP: You can use the Saver's Credit and get a large chunk of Federal taxes back! I did this for 2015 tax year, got under the $18,250 AGI threshold, and wiped out all federal income taxes. :) https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-savings...
by David Jay
Thu Mar 23, 2017 11:31 am
Forum: Investing - Help with Personal Investments
Topic: Vanguard Noob Question on Selling and Buying
Replies: 7
Views: 455

Re: Vanguard Noob Question on Selling and Buying

Is this a taxable account or is it an IRA?
by David Jay
Thu Mar 23, 2017 11:23 am
Forum: Investing - Help with Personal Investments
Topic: Initial investment advice
Replies: 15
Views: 607

Re: Initial investment advice

I did do a bit of research prior to just purchasing it and sort of decided that since I expect some sort of major market correction during my lifetime the guaranteed returns on some whole life might not be too bad. "Guaranteed" means you will lose money for 7-10 years. If you continue to ...
by David Jay
Thu Mar 23, 2017 8:35 am
Forum: Personal Finance (Not Investing)
Topic: Supplemental/Passive Income
Replies: 7
Views: 576

Re: Supplemental/Passive Income

It is great that you are focused on your financial situation. Lots of people don't get serious until they are in their 30s or 40s. I wish I understood what you do at age 24 (I didn't make my first 401K distribution until I was 29 or 30). Our best "one page" WIKI resource for investing is h...
by David Jay
Thu Mar 23, 2017 8:07 am
Forum: Investing - Help with Personal Investments
Topic: Initial investment advice
Replies: 15
Views: 607

Re: Initial investment advice

Sorry, didn't mean to overwhelm you. Welcome to the BH forum. After repeatedly seeing many of the same questions, it is easy to begin to provide "snap" answers. Please do not be intimidated and continue to post your questions. If you do nothing else, I recommend reading the article at WIKI...
by David Jay
Thu Mar 23, 2017 7:58 am
Forum: Investing - Help with Personal Investments
Topic: Reminder: Bogleheads Investing Startup Kit
Replies: 2
Views: 372

Reminder: Bogleheads Investing Startup Kit

For the last few weeks I have been trying to "specialize" in unanswered posts. I have been scrolling down looking for posts with zero replies and seeing if the questions are general enough for me to answer. At tax time we seem to see a bunch of new forum members - I think I have responded ...
by David Jay
Wed Mar 22, 2017 8:50 pm
Forum: Investing - Help with Personal Investments
Topic: Roth vs. TIRA, am I missing something obvious?
Replies: 23
Views: 1061

Re: Roth vs. TIRA, am I missing something obvious?

RMD percentage starts at 5.3% but by your late 70s the RMD is 9% of your portfolio balance each year. Based on IRA Required Minimum Distribution Worksheet it would seem the percentage is somewhat lower...? Age Factor Percentage 70 27.4 3.6% 71 26.5 3.8% 72 25.6 3.9% 73 24.7 4.0% 74 23.8 4.2% 75 22....
by David Jay
Wed Mar 22, 2017 8:11 pm
Forum: Investing - Help with Personal Investments
Topic: Roth vs. TIRA, am I missing something obvious?
Replies: 23
Views: 1061

Re: Roth vs. TIRA, am I missing something obvious?

The numbers work out exactly the same if you are putting in the same amount of pre-tax dollars and your tax rate is the same at both contribution and withdrawal. The two key decision points are: 1. Will your tax rate be higher at time of contribution or at time of withdrawal 2. Can you benefit from...
by David Jay
Wed Mar 22, 2017 8:05 pm
Forum: Investing - Help with Personal Investments
Topic: Roth vs. TIRA, am I missing something obvious?
Replies: 23
Views: 1061

Re: Roth vs. TIRA, am I missing something obvious?

For someone working in the third tax bracket, assuming they will be in the second tax bracket in retirement, accumulating for 20 years in a growth portfolio, withdrawing for 20 years in a mod-growth portfolio, till the account equals 0 in the last year, the estimated after tax IRR's are : tIRA Resu...
by David Jay
Wed Mar 22, 2017 7:11 pm
Forum: Investing - Help with Personal Investments
Topic: Advice for new situation
Replies: 9
Views: 689

Re: Advice for new situation

Were you maxing out the 401K (i.e. $18,000 per year) in your previous position?

If so, I would target 15% into the 457. 10% is the absolute minimum, even with a pension.
by David Jay
Wed Mar 22, 2017 6:49 pm
Forum: Investing - Help with Personal Investments
Topic: Initial investment advice
Replies: 15
Views: 607

Re: Initial investment advice

Anyone who would recommend putting money with them in a taxable account with an AUM fee instead of using tax-advantaged space (IRA, 401K, etc.) is working in their own interest rather than yours.
by David Jay
Wed Mar 22, 2017 6:46 pm
Forum: Investing - Help with Personal Investments
Topic: Initial investment advice
Replies: 15
Views: 607

Re: Initial investment advice

For investment, start with Bernstein's little pamphlet. William Bernstein has written a great investment starter pamphlet for Millennials entitled "If You Can". The pamphlet in .PDF form is available at no cost on the WIKI here: https://www.bogleheads.org/wiki/Bogleheads%C2%AE_investing_st...
by David Jay
Wed Mar 22, 2017 6:39 pm
Forum: Investing - Help with Personal Investments
Topic: Initial investment advice
Replies: 15
Views: 607

Re: Initial investment advice

Ouch. Too bad you didn't come here before purchasing whole life.

Best article that I have found on whole life is this one at White Coat Investor: http://whitecoatinvestor.com/12-questio ... insurance/
by David Jay
Wed Mar 22, 2017 6:23 pm
Forum: Investing - Help with Personal Investments
Topic: WWBHD? 50k scared money for Roth IRA
Replies: 11
Views: 1005

Re: WWBHD? 50k scared money for Roth IRA

If you like Berkshire, Buffet says individuals should put 90% in an S&P fund and 10% in short term Treasury bond fund. I think that quote needs to be corrected. Buffet said that he has instructed that his wife's assets, after his demise , should be arranged in that manner. That will be tens of ...
by David Jay
Wed Mar 22, 2017 6:21 pm
Forum: Investing - Help with Personal Investments
Topic: Roth vs. TIRA, am I missing something obvious?
Replies: 23
Views: 1061

Re: Roth vs. TIRA, am I missing something obvious?

The numbers work out exactly the same if you are putting in the same amount of pre-tax dollars and your tax rate is the same at both contribution and withdrawal. The two key decision points are: 1. Will your tax rate be higher at time of contribution or at time of withdrawal 2. Can you benefit from ...
by David Jay
Wed Mar 22, 2017 3:53 pm
Forum: Investing - Help with Personal Investments
Topic: Could my 529 returns really be this good?
Replies: 4
Views: 804

Re: Could my 529 returns really be this good?

I don't think these are Average Annual returns, but are Cumulative. Thanks. Forgive my lack of knowledge, but what is the difference? When someone typically thinks of getting a "7% return" for example, how is that calculated compared to this method? A 7% annual return for 5 years would gi...
by David Jay
Wed Mar 22, 2017 3:47 pm
Forum: Investing - Help with Personal Investments
Topic: Roth 401K vs. 401K
Replies: 18
Views: 1001

Re: Roth 401K vs. 401K

At your income level I would choose the Roth 401K. The issue of personal versus 401K would be easier to comment on if we knew the expense ratio (ER) of the work fund(s). You need to go to your 401K website (or ask your administrator) for the ER of your 2055 fund. In general a date-fund like you are ...
by David Jay
Wed Mar 22, 2017 3:15 pm
Forum: Investing - Help with Personal Investments
Topic: WWBHD? 50k scared money for Roth IRA
Replies: 11
Views: 1005

Re: WWBHD? 50k scared money for Roth IRA

If you like Berkshire, Buffet says individuals should put 90% in an S&P fund and 10% in short term Treasury bond fund. I think that quote needs to be corrected. Buffet said that he has instructed that his wife's assets, after his demise , should be arranged in that manner. That will be tens of ...
by David Jay
Wed Mar 22, 2017 2:33 pm
Forum: Investing - Help with Personal Investments
Topic: Will new index funds ever come out?
Replies: 12
Views: 1265

Re: Will new index funds ever come out?

Objective is to have money to takeout within the next 10-15 years... Have 5.5k in VTSMX (plan on adding $300 a month to it, withdraw when im 40). I would hold Total Stock until 5 years before withdrawal, then I would sell 20% per year and put the money into bonds (Short Term Bond fund) or cash (int...
by David Jay
Tue Mar 21, 2017 9:57 pm
Forum: Personal Consumer Issues
Topic: Short visit to Hong Kong - "must do/see"?
Replies: 16
Views: 1105

Re: Short visit to Hong Kong - "must do/see"?

If you want to see the "real" back-street HongKong, the night market is fascinating, they shut down two blocks of a street just west of Austin Road and it is filled with vendors. If I recall it happens 2 nights a week, you will have to ask the concierge.
by David Jay
Tue Mar 21, 2017 11:57 am
Forum: Investing - Help with Personal Investments
Topic: Vanguard accounts and index investment
Replies: 4
Views: 393

Re: Vanguard accounts and index investment

I'm not livesoft, but the point of the all-in-one retirement funds (TargetRetirement, 20Forever, LifeStrategy) is that they are fully diversified. They hold (under the covers) Total Market funds for US and International, as well as diversified Bonds. You do not need to add anything, adding something...
by David Jay
Tue Mar 21, 2017 11:24 am
Forum: Personal Finance (Not Investing)
Topic: Series 65 Volunteer Advising?
Replies: 20
Views: 872

Re: Series 65 Volunteer Advising?

It is extremely difficult to make a living in financial services without doing the things that go against Boglehead principles: High ERs (for 12b-1 kickbacks), AUM fees, annuity sales, etc. If you think there are a lot of people making it out there as fee-only advisors, just use the search feature h...
by David Jay
Tue Mar 21, 2017 10:56 am
Forum: Investing - Help with Personal Investments
Topic: Does Vanguard have contrarian funds ?
Replies: 25
Views: 1706

Re: Does Vanguard have contrarian funds ?

I am worried about a crash so where can I dump a significant Vanguard portfolio in to once I see signals of a pullback or recession? I do not want to ride out a 20% pullback? Too old! Also, you can't wait until you see the signs of a pullback. It is already too late. You need to do this proactively...
by David Jay
Tue Mar 21, 2017 10:55 am
Forum: Investing - Help with Personal Investments
Topic: Does Vanguard have contrarian funds ?
Replies: 25
Views: 1706

Re: Does Vanguard have contrarian funds ?

I see this is your first post. Welcome to the forum! If you can't take a 20% drop, then how about a 30/70 asset allocation. Worst annual performance since 1926 is -14.2% (that was 1931), according to this Vanguard web page: http://vanguard.com/us/insights/saving-investing/model-portfolio-allocations...
by David Jay
Tue Mar 21, 2017 10:42 am
Forum: Investing - Theory, News & General
Topic: What's your strategy for withdrawing funds in Retirement ?
Replies: 31
Views: 2722

Re: What's your strategy for withdrawing funds in Retirement ?

Books: Boglehead's Guide to Retirement, Jane Bryant Quinn "Making Your Money Last"
by David Jay
Tue Mar 21, 2017 10:38 am
Forum: Investing - Theory, News & General
Topic: What's your strategy for withdrawing funds in Retirement ?
Replies: 31
Views: 2722

Re: What's your strategy for withdrawing funds in Retirement ?

Put everything in LifeStrategy Moderate (tIRA and Roth). 1. Withdraw from tIRA (i.e. by selling mutual fund shares) RMD amount every year (distribute as a QCD). 2. Withdraw from tIRA (i.e. by selling mutual fund shares) one year's living expenses every year. 3. Make a small conversion from tIRA to R...
by David Jay
Mon Mar 20, 2017 7:01 pm
Forum: Investing - Help with Personal Investments
Topic: Vanguard accounts and index investment
Replies: 4
Views: 393

Re: Vanguard accounts and index investment

1. I would strongly recommend either Total Stock Market or LifeStrategy (perhaps LS Aggressive? It is still more conservative than Total Stock). Sector funds like you have in your Traditional IRA increase volatility without adequately compensating you for the risk. 2. With a 30 year time horizon, I ...
by David Jay
Mon Mar 20, 2017 12:00 pm
Forum: Investing - Help with Personal Investments
Topic: S&P 500 long-term investment: Mutual Fund vs. ETF?
Replies: 23
Views: 820

Re: S&P 500 long-term investment: Mutual Fund vs. ETF?

I was in VOO before I moved from ETFs to Mutual Funds. It was not uncommon for it to outperform the SP500 (by a miniscule amount) due to trading methodologies.
by David Jay
Mon Mar 20, 2017 11:58 am
Forum: Investing - Help with Personal Investments
Topic: S&P 500 long-term investment: Mutual Fund vs. ETF?
Replies: 23
Views: 820

Re: S&P 500 long-term investment: Mutual Fund vs. ETF?

If you can reinvest the dividends in the S&P 500 ETF for free, the choice between a fund and an ETF would be a wash. Thank you for your reply. Fidelity currently offers both the mutual fund (FUSVX) and the ETF (IVV) with no trading/reinvestment charge. That could change anytime in the future. Y...
by David Jay
Mon Mar 20, 2017 10:39 am
Forum: Personal Consumer Issues
Topic: A SUV for towing a Travel Trailer
Replies: 60
Views: 2869

Re: A SUV for towing a Travel Trailer

I would be very hesitant about towing a large trailer with a small SUV after what I observed on a mountain road up in Canada one time. I was pulling a 25 foot trailer with a large Dodge Van so I never had any sway problems but on the other side of the road I saw a rig coming down the mountain when ...
by David Jay
Mon Mar 20, 2017 9:27 am
Forum: Investing - Help with Personal Investments
Topic: Will new index funds ever come out?
Replies: 12
Views: 1265

Re: Will new index funds ever come out?

Great point. I know people here love the 3 fund system, but would you recommend VFINX? What is your goal? If your goal is to "own the market" with no sector tilts, Total Stock (VTSMX) is probably the purest single fund available for holding the entire US market. Buying an SP500 fund will ...
by David Jay
Mon Mar 20, 2017 9:03 am
Forum: Investing - Help with Personal Investments
Topic: Will new index funds ever come out?
Replies: 12
Views: 1265

Re: Will new index funds ever come out?

The price of a mutual fund is meaningless. It is a unit-less measurement. Would you rather buy milk for $2.69 or $0.80? Oh, let me add that the units are gallon and quart respectively. Do you understand the illustration? The price of a mutual fund is meaningless. There is absolutely no difference be...
by David Jay
Mon Mar 20, 2017 8:52 am
Forum: Investing - Theory, News & General
Topic: Sitting on cash....Waiting for a crash
Replies: 129
Views: 16817

Re: Sitting on cash....Waiting for a crash

I was re-reading Bernstein's "Deep Risk" on the plane Friday. Ran across a great quote:

...mistiming the market is probably the most frequent and severe form of permanent capital loss.

but hey, its a free country...
by David Jay
Sun Mar 19, 2017 10:31 pm
Forum: Investing - Help with Personal Investments
Topic: "Don't time the market" vs. "Buy low, sell high"
Replies: 69
Views: 4748

Re: "Don't time the market" vs. "Buy low, sell high"

This exert from Random Walk is what would keep me from doing this: "Because there is a long-term uptrend in the stock market, it can be very risky to be in cash. An investor who frequently carries a large cash position to avoid periods of market decline is very likely to be out of the market d...
by David Jay
Sun Mar 19, 2017 9:54 pm
Forum: Personal Consumer Issues
Topic: Rechargeable AA & AAA Batteries:NiMH or Li-Ion?
Replies: 25
Views: 1167

Re: Rechargeable AA & AAA Batteries:NiMH or Li-Ion?

Why have household AA & AAA not also migrated to Li-Ion? Or am I perhaps just searching by the wrong keywords? Lithium batteries have a native voltage of 3 volts or higher, depending on type (i.e. Li-Polymer is 4.2v, Li-Phosphate is 3.2v). In order to make a 1.5 volt cell, it would be necessary...
by David Jay
Sun Mar 19, 2017 9:19 pm
Forum: Personal Consumer Issues
Topic: A SUV for towing a Travel Trailer
Replies: 60
Views: 2869

Re: A SUV for towing a Travel Trailer

Grand Cherokee has a high tow rating (6000?, 7000?) and is not much longer than your current vehicle. Camping last year, the lot next door had one and was pulling a 30' trailer with 2 slides, I talked with the owner. He was very happy with the Grand Cherokee. [edit] Just went to the Jeep website - t...
by David Jay
Sat Mar 18, 2017 6:07 pm
Forum: Investing - Theory, News & General
Topic: Life Strategy in Roth
Replies: 1
Views: 377

Re: Life Strategy in Roth

Reinvest dividends. this will maximize the compounding.

LifeStrategy is great in your Roth.

I agree, use LS until you can do your allocation in Admiral
by David Jay
Thu Mar 16, 2017 11:46 am
Forum: Investing - Help with Personal Investments
Topic: Bought my first individual TIPS, now I am in love!
Replies: 34
Views: 3910

Re: Bought my first individual TIPS, now I am in love!

cheese_breath wrote:Are you in love or just a little tipsy? :D


he's had too much cheese :happy
by David Jay
Wed Mar 15, 2017 9:35 pm
Forum: Investing - Help with Personal Investments
Topic: Retirement
Replies: 3
Views: 450

Re: Retirement

Just curious if you've considered an annuity? Since you're older, it would likely have a higher payout than for the younger folks. It can be a good option to consider and supplement your income and social security. That's something we would consider if we didn't have a pension and wanted to guarant...
by David Jay
Wed Mar 15, 2017 9:29 pm
Forum: Investing - Help with Personal Investments
Topic: Retirement
Replies: 3
Views: 450

Re: Retirement

Welcome to the forum with your first post. If you use the search function (the box that says "Google") for phrases like "high dividend", "dividend income", "dividend stocks" and "dividend strategy" you will find many threads that address a dividend s...
by David Jay
Wed Mar 15, 2017 12:22 pm
Forum: Personal Finance (Not Investing)
Topic: Convincing Someone To Dump A Bad Financial Advisor
Replies: 39
Views: 3126

Re: Convincing Someone To Dump A Bad Financial Advisor

I would keep it very simple. The current advisor is getting 1.5%. Vanguard will do it for 0.3%. Total portfolio * 1.2% is what she is "throwing away" every year. Running the rough numbers (yield is 2.75%, she is taking out $20K/yr, account balance isn't shrinking), I gather that the accoun...
by David Jay
Wed Mar 15, 2017 12:05 pm
Forum: Investing - Help with Personal Investments
Topic: Move my Traditional IRA from Ameriprise to where?
Replies: 8
Views: 665

Re: Move my Traditional IRA from Ameriprise to where?

In order of my preference, here are the places to move your IRAs: Vanguard, Fidelity, Schwab Contact the company that will be receiving your accounts, they will do all the work (because they want your accounts). You never need to speak to Ameriprise. While your accounts are transferring (up to 2 wee...

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