Search found 3364 matches

by David Jay
Thu Jun 22, 2017 9:57 pm
Forum: Investing - Help with Personal Investments
Topic: Northwestern Mutual High Fees to Vanguard
Replies: 7
Views: 280

Re: Northwestern Mutual High Fees to Vanguard

Welcome to the forum! Questions: 1. How does this Vanguard portfolio look? 2. Should I consider diversifying the Vanguard portfolio more by adding some real estate funds and commodities funds, as I currently have? 3. Is it realistic that the portfolio with Northwestern Mutual could consistently outp...
by David Jay
Wed Jun 21, 2017 3:45 pm
Forum: Personal Finance (Not Investing)
Topic: 20 pct bonus on fixed index annuity
Replies: 22
Views: 1000

Re: 20 pct bonus on fixed index annuity

Would love to see it clearly illustrated on an annuity that supposedly has no fees. Wait. Did the sales person really claim it had no fees???? That is not within the realm of possible. Yea, I just assumed that was a line. Perhaps they meant no "fund fees" like a variable annuity. All the ...
by David Jay
Wed Jun 21, 2017 3:42 pm
Forum: Investing - Theory, News & General
Topic: Closet Index fund?
Replies: 31
Views: 1505

Re: Closet Index fund?

The phrase "closet index fund" is not precisely defined. Generally it refers to an actively-managed fund whose results closely follow those of a passively managed index fund (for some particular index, like the S&P500), but there is no general agreement on how close the results need t...
by David Jay
Wed Jun 21, 2017 2:54 pm
Forum: Investing - Theory, News & General
Topic: Closet Index fund?
Replies: 31
Views: 1505

Re: Closet Index fund?

Yep, pretty safe to say that this is a closet index fund where the managers so far have been paid for nothing: http://www.morningstar.com/funds/xnas/retsx/quote.html If this was a true active fund, how could I tell? Turnover is published - check Morningstar. Also look at the shape of the graph in b...
by David Jay
Wed Jun 21, 2017 1:10 pm
Forum: Investing - Help with Personal Investments
Topic: Are my Plan Administrative Fees high?
Replies: 12
Views: 501

Re: Are my Plan Administrative Fees high?

The Advisor fee may be an opt-out feature. That happened to me, after a custodian change the plan started changing my fund selections. I contacted HR and they said that in the bottom of some email they sent out they said that if I did not opt-out then I would be put into the advisory service of the ...
by David Jay
Wed Jun 21, 2017 1:06 pm
Forum: Investing - Theory, News & General
Topic: Closet Index fund?
Replies: 31
Views: 1505

Re: Closet Index fund?

I think the more important metric would be a comparison r squared and the total returns. Theoretically the active fund could have exactly double the movement of the S&P 500 and have a r squared of 1. At least I think that might be true. The total returns have been 1% less than the S&P 500 T...
by David Jay
Wed Jun 21, 2017 1:02 pm
Forum: Personal Finance (Not Investing)
Topic: 20 pct bonus on fixed index annuity
Replies: 22
Views: 1000

Re: 20 pct bonus on fixed index annuity

Hoops: Unless you can give us a link to the prospectus, it is really hard to guess what they are doing. That being the case, never let it be said that I needed facts before giving my opinion: 1. Virtually all indexed annuities use the SP500 index for calculation. The index does not include the divid...
by David Jay
Wed Jun 21, 2017 12:35 pm
Forum: Investing - Theory, News & General
Topic: Closet Index fund?
Replies: 31
Views: 1505

Re: Closet Index fund?

I think the more important metric would be a comparison r squared and the total returns. Theoretically the active fund could have exactly double the movement of the S&P 500 and have a r squared of 1. At least I think that might be true. The total returns have been 1% less than the S&P 500 T...
by David Jay
Wed Jun 21, 2017 12:03 pm
Forum: Investing - Theory, News & General
Topic: LifeStrategy or Target Retirement Funds?
Replies: 17
Views: 1678

Re: LifeStrategy or Target Retirement Funds?

i've always wondered why LS doesn't offer a classic 50-50 portfolio. one can always buy equal amounts of 60-40 and 40-60 (like some who own equal amounts of wellesley and wellington), but still... I think that the answer applies to you and to RadAudit (6:27am) - 10% just doesn't make that much diff...
by David Jay
Wed Jun 21, 2017 8:37 am
Forum: Investing - Theory, News & General
Topic: Larry Swedroe: Persistent Returns Remain Elusive
Replies: 15
Views: 2304

Re: Larry Swedroe: Persistent Returns Remain Elusive

investing blindly in ESOPs" How does one "invest" in an ESOP? I understood that by definition an ESOP is an ERISA governed retirement plan that requires a proportional share distribution across all participants (typically based on W-2 wages)? I know our plan does not allow for any vo...
by David Jay
Wed Jun 21, 2017 8:22 am
Forum: Investing - Theory, News & General
Topic: LifeStrategy or Target Retirement Funds?
Replies: 17
Views: 1678

Re: LifeStrategy or Target Retirement Funds?

The only concern I have in choosing between the two types of funds - Life strategy or Target - is the end game. early on the glide path of target funds is very good for folks who want to set it and forget it. I have DW, DD and DS in those funds in their tax deferred accounts which are the bulk of t...
by David Jay
Tue Jun 20, 2017 10:44 pm
Forum: Investing - Theory, News & General
Topic: What do BH think of this formula for an early retiree?
Replies: 24
Views: 2400

Re: What do BH think of this formula for an early retiree?

A 6% rate of return on a $1,200,000 portfolio yields $72,000 a year, which could cover 100% of expenses. Unfortunately, 6% withdrawal rates are not "safe". A more conservative 3 to 4% withdrawal rate would still likely cover 50% plus of expenses. A 3%-4% withdrawal rate is appropriate for...
by David Jay
Tue Jun 20, 2017 3:04 pm
Forum: Personal Consumer Issues
Topic: Commissioned Salesperson Opportunity
Replies: 8
Views: 866

Re: Commissioned Salesperson Opportunity

In a "startup" company, I think you would be better served with primarily a salary and a smallish commission. Salary is bonds, commission is equity. Think 2008. As a Michigander myself, I would be very cautious about a rep agreement. I sell capital equipment, and I can tell you that when t...
by David Jay
Tue Jun 20, 2017 2:53 pm
Forum: Investing - Theory, News & General
Topic: Not reinvesting dividends
Replies: 18
Views: 2429

Re: Not reinvesting dividends

I understand that the majority of Bogleheads own individual stocks in their portfolios as I saw it on one of the threads here (67% +/-) You have to be very careful about polls like that one for (2) reasons: 1. Self-selection: Only those who think individual stocks are interesting will even click on...
by David Jay
Tue Jun 20, 2017 11:46 am
Forum: Investing - Theory, News & General
Topic: What do BH think of this formula for an early retiree?
Replies: 24
Views: 2400

Re: What do BH think of this formula for an early retiree?

TL:

Yours is more elegant than mine, I will end up with some balance @ start of SS (due to bond gains and expenses deviating from projection) that will need to be transferred to my LS fund.

How often would you re-balance? Annually? Semi-Annually?
by David Jay
Tue Jun 20, 2017 11:40 am
Forum: Investing - Theory, News & General
Topic: What do BH think of this formula for an early retiree?
Replies: 24
Views: 2400

Re: What do BH think of this formula for an early retiree?

Looks a little too conservative. 10 years from now you may very well be 100% in stocks . Today, you don't need to be almost 70% in bonds to be sure to make it that far. Actually, no. "Months to FRA" is dynamic, every month a bit less is needed in bridge funds so ExpSet is on a glideslope ...
by David Jay
Tue Jun 20, 2017 11:28 am
Forum: Investing - Theory, News & General
Topic: What do BH think of this formula for an early retiree?
Replies: 24
Views: 2400

Re: What do BH think of this formula for an early retiree?

OP had a recent thread on increasing AA in late retirement (after sequence-of-returns risk between retirement and start of SS). This is his proposal for protecting the capital needed to get to SS and going to 80/20 after start of SS. Link here: https://www.bogleheads.org/forum/viewtopic.php?f=10&...
by David Jay
Tue Jun 20, 2017 11:18 am
Forum: Investing - Theory, News & General
Topic: What do BH think of this formula for an early retiree?
Replies: 24
Views: 2400

Re: What do BH think of this formula for an early retiree?

It works just fine, it keeps everything in one "bucket". I am sort of doing a "two-bucket" solution, in my structure: 1. You would just drop the entire 480K in LS Aggressive (80/20) and leave it alone, that is the long term portfolio 2 The 720K would then be a chunk (in my case, ...
by David Jay
Mon Jun 19, 2017 9:47 pm
Forum: Investing - Help with Personal Investments
Topic: Roth IRA for 24 year old son
Replies: 3
Views: 536

Re: Roth IRA for 24 year old son

TargetRetirement 2055. He should stay with it until he can afford a 3-fund portfolio in Admiral class (30,000+, depending on asset allocation). My son is 24 and opened his Roth this year (he got the saver's tax credit!). When my daughter opened her Roth about 4 years ago I recommended TR2050 to her.
by David Jay
Mon Jun 19, 2017 5:14 pm
Forum: Personal Finance (Not Investing)
Topic: Full comprehensive or liability only?
Replies: 29
Views: 1923

Re: Full comprehensive or liability only?

I drop comprehensive when my vehicles depreciate to about 3000-4000. I just dropped it on my 2008 Grand Prix with 135,000 miles.
by David Jay
Mon Jun 19, 2017 10:06 am
Forum: Investing - Theory, News & General
Topic: new to investing...[a little] help please?
Replies: 39
Views: 1386

Re: new to investing...[a little] help please?

Getting back to your original post, the $3000 needs to be used to open a Roth IRA. At your income level, there is no reason to invest any retirement funds (or funds not needed for 10+ years) anywhere other than a Roth. You can withdraw contributions to a Roth if necessary in an emergency. I love the...
by David Jay
Mon Jun 19, 2017 10:01 am
Forum: Investing - Theory, News & General
Topic: new to investing...[a little] help please?
Replies: 39
Views: 1386

Re: new to investing...[a little] help please?

In my opinion, you should do your investing as follows: 1. Invest in 401K only to the level required to get any employer match. [edit] I just read your post (above). 2. Invest in (2) Roth accounts (one for you, one for spouse) up to the maximum of $11,000. I recommend this because of your low tax r...
by David Jay
Mon Jun 19, 2017 9:59 am
Forum: Investing - Help with Personal Investments
Topic: ESOP payout rollover help
Replies: 7
Views: 505

Re: ESOP payout rollover help

Thank you David.The sale of the ESOP came sooner than expected so I was doing a little research and posts about EJ led me here .To be fair EJ has done well by me in my opinion for the options I chose.I was just looking for another alternative for this distribution and to not to cause a taxable even...
by David Jay
Mon Jun 19, 2017 9:43 am
Forum: Investing - Theory, News & General
Topic: new to investing...[a little] help please?
Replies: 39
Views: 1386

Re: new to investing...[a little] help please?

In my opinion, you should do your investing as follows: 1. Invest in 401K only to the level required to get any employer match. [edit] I just read your post (above). 2. Invest in (2) Roth accounts (one for you, one for spouse) up to the maximum of $11,000. I recommend this because of your low tax ra...
by David Jay
Sun Jun 18, 2017 2:46 pm
Forum: Investing - Help with Personal Investments
Topic: ESOP payout rollover help
Replies: 7
Views: 505

Re: ESOP payout rollover help

On the ESOP distribution, be careful that you do a direct rollover of the ESOP proceeds into an IRA account to avoid triggering a taxable event.

(I also work for an ESOP company)
by David Jay
Sun Jun 18, 2017 2:44 pm
Forum: Investing - Help with Personal Investments
Topic: ESOP payout rollover help
Replies: 7
Views: 505

Re: ESOP payout rollover help

Welcome to BH! 1. If you feel you need a "managed" account, I would strongly recommend low cost advisory service. There are several, but Vanguard's PAS (Portfolio Advisory Service) cost 0.3% per year, a full percentage point less than an EJ account before we even talk about indivIdual fund...
by David Jay
Sat Jun 17, 2017 10:27 pm
Forum: Investing - Help with Personal Investments
Topic: Variable Life Insurance as an Investment Vehicle
Replies: 39
Views: 2170

Re: Variable Life Insurance as an Investment Vehicle

Why don't you quote the Three Fund Portfolio? It would be more productive. And it would provide a Three Fund Portfolio advocate a little perspective. Or are you and advocate of fully vesting in the SP500? There is no single "3-fund" portfolio, individuals select an appropriate of percenta...
by David Jay
Sat Jun 17, 2017 10:11 pm
Forum: Personal Finance (Not Investing)
Topic: When should wife take SS?
Replies: 9
Views: 1194

Re: When should wife take SS?

On the cusp:

I hadn't seen that calculator before. I like the simplicity and the side-by-side comparison.
by David Jay
Sat Jun 17, 2017 9:52 pm
Forum: Personal Finance (Not Investing)
Topic: So sick of it! [Paying off student loans]
Replies: 42
Views: 6086

Re: So sick of it!

There is a lot to be said for the "freedom" of paying off the loan. If you can restore your cash reserve fairly promptly, I think you could "get by" with a $35K cash reserve for the emotional relief of seeing the loans gone . [edit] I am trying to get my mortgage paid off, so I u...
by David Jay
Sat Jun 17, 2017 2:26 pm
Forum: Personal Consumer Issues
Topic: Car purchase Vs. car leasing
Replies: 11
Views: 1342

Re: Car purchase Vs. car leasing

Purchasing off of lease is usually the worst option financially.

Buy if you intend to keep the vehicle (buy-and-hold :happy ), or lease if you want a new vehicle every 3 years.
by David Jay
Sat Jun 17, 2017 2:18 pm
Forum: Investing - Help with Personal Investments
Topic: The terrible things I have done--I wish to come clean
Replies: 24
Views: 2367

Re: The terrible things I have done--I wish to come clean

JonnyDVM wrote:You lost me at "I love my whole life insurance"

+1
by David Jay
Sat Jun 17, 2017 2:10 pm
Forum: Investing - Help with Personal Investments
Topic: My Portfolio
Replies: 6
Views: 537

Re: My Portfolio

Welcome to the forum! 1. $480,000 in retirement accounts at your age is a great start! 2. I would actively consider selling taxable in order to fully fund your tax-deferred accounts. You can't ever recover that tax advantaged space once it is past. 3. On principle, it is wise to diversify investment...
by David Jay
Sat Jun 17, 2017 1:47 pm
Forum: Investing - Help with Personal Investments
Topic: Retirement Account Advice
Replies: 8
Views: 828

Re: Retirement Account Advice

Thanks all for the feedback so far. This account is a 403b. I picked 5% money market just in case of a great depression I might still have something ... :) I heard Wellington and Wellesley had good returns, and STAR seemed to have good returns YTD. REIT seems not to be doing very well YTD (so I red...
by David Jay
Sat Jun 17, 2017 11:56 am
Forum: Personal Finance (Not Investing)
Topic: Financial Freedom at 55, Early Retirement, SPIA a good idea?
Replies: 23
Views: 1868

Re: Financial Freedom at 55, Early Retirement, SPIA a good idea?

I might add that many people in your age bracket tend to overlook inflation because it has been relatively benign in your adult lifetime, but that will not always be the case. I was coming of age in the late '70s and I remember prices being higher on part of my shopping list every time I went to the...
by David Jay
Sat Jun 17, 2017 11:48 am
Forum: Personal Finance (Not Investing)
Topic: Financial Freedom at 55, Early Retirement, SPIA a good idea?
Replies: 23
Views: 1868

Re: Financial Freedom at 55, Early Retirement, SPIA a good idea?

Oh, and I see this is your first post. Welcome to the forum.
by David Jay
Sat Jun 17, 2017 11:39 am
Forum: Personal Finance (Not Investing)
Topic: Financial Freedom at 55, Early Retirement, SPIA a good idea?
Replies: 23
Views: 1868

Re: Financial Freedom at 55, Early Retirement, SPIA a good idea?

Would buying a Joint SPIA paying $8200/month (~about 5.20%) with the main portfolio a good idea at 55 ? 1. Delaying the purchase of an SPIA significantly increases the payout because of mortality credits. 2. The spending power of the payout will be eroded over the years by inflation - the longer th...
by David Jay
Fri Jun 16, 2017 9:53 pm
Forum: Investing - Theory, News & General
Topic: Your Favorite Portfolio Tilts
Replies: 79
Views: 4535

Re: Your Favorite Portfolio Tilts

Full disclosure, I have a minor tilt to small cap value. But I intend to convert to a single LifeStrategy fund in retirement for simplicity, especially for my spouse. David Jay, which LifeStrategy fund do you intend to use in retirement? LS Moderate (60/40), but understand that SS meets our needs w...
by David Jay
Fri Jun 16, 2017 9:49 pm
Forum: Investing - Theory, News & General
Topic: FireCalc: Equities almost 70% for a 20 year term???
Replies: 43
Views: 3484

Re: FireCalc: Equities almost 70% for a 20 year term???

But a lot of people can't handle volatility in retirement. It is one thing to have a 30% loss when you are 60 and you decide to work another year or 2. It is different when you are 70 and no more income is coming in. ^^^ This 70/30 or 60/40 are much more likely to outperform (hence Firecalc), but b...
by David Jay
Fri Jun 16, 2017 9:16 pm
Forum: Investing - Theory, News & General
Topic: FireCalc: Equities almost 70% for a 20 year term???
Replies: 43
Views: 3484

Re: FireCalc: Equities almost 70% for a 20 year term???

But a lot of people can't handle volatility in retirement. It is one thing to have a 30% loss when you are 60 and you decide to work another year or 2. It is different when you are 70 and no more income is coming in. ^^^ This 70/30 or 60/40 are much more likely to outperform (hence Firecalc), but b...
by David Jay
Fri Jun 16, 2017 7:04 pm
Forum: Investing - Help with Personal Investments
Topic: Retirement Account Advice
Replies: 8
Views: 828

Re: Retirement Account Advice

Should I bother with anything outside of target retirement? There are approximately 187,391 portfolios that are worse than an all-Target-Retirement portfolio. If, as you say, you don't know much then a TR is probably a great choice. A regular contributor here ("neurosphere") has this sign...
by David Jay
Fri Jun 16, 2017 4:47 pm
Forum: Investing - Theory, News & General
Topic: Possible to exchange for a new fund and buy more on the same market day? [Mutual Fund]
Replies: 9
Views: 610

Re: Possible to exchange for a new fund and buy more on the same market day? [Mutual Fund]

With Vanguard, it has been my experience that you can buy as much as you want as often as you want with exchanges or settled funds.

To reduce trading, there is a limit on re-purchases of a fund that you sold (or exchanged out of) within the last 30 days.
by David Jay
Fri Jun 16, 2017 3:37 pm
Forum: Personal Finance (Not Investing)
Topic: Curious to odd estate question
Replies: 88
Views: 4708

Re: Curious to odd estate question

As one of your posts indicate, if it's just that he hates his relatives , why doesn't he just give it to a charity that does some good things. As others have pointed out, destroying it in some way will most likely be challenged in court, and if the will is tossed out, guess it who it goes to, the r...
by David Jay
Fri Jun 16, 2017 3:32 pm
Forum: Personal Finance (Not Investing)
Topic: Curious to odd estate question
Replies: 88
Views: 4708

Re: Curious to odd estate question

Pity. That is my reaction to this poor, empty heart.

There is not one thing on this planet that he cares enough about to support, beyond himself.
by David Jay
Fri Jun 16, 2017 2:00 pm
Forum: Investing - Help with Personal Investments
Topic: Annuities/Fixed Value instead of bonds as fixed income
Replies: 9
Views: 871

Re: Annuities/Fixed Value instead of bonds as fixed income

One should not "lock" themself into a 3% or 4% product - most people your age do not take the risk of inflation seriously. I remember buying my first house in 1980 at an 11% interest rate. These are not 3% or 4% "products". Well, I can't speak to Prudential, but the past 50 year...
by David Jay
Fri Jun 16, 2017 1:04 pm
Forum: Personal Finance (Not Investing)
Topic: URGENT TIME SENSITIVE: Deathbed Roth
Replies: 45
Views: 4093

Re: URGENT TIME SENSITIVE: Deathbed Roth

Zen: If it was me, I would just go ahead and convert all of it. The majority of the taxes will be @ 15%, with some @ 25%. Only a small % of the Life Insurance proceeds will be needed to cover the conversion taxes. Either way, the maximum rate is as good or the same as your BIL's rate. Both siblings...
by David Jay
Fri Jun 16, 2017 12:58 pm
Forum: Personal Finance (Not Investing)
Topic: URGENT TIME SENSITIVE: Deathbed Roth
Replies: 45
Views: 4093

Re: URGENT TIME SENSITIVE: Deathbed Roth

Zen: If it was me, I would just go ahead and convert all of it. The majority of the taxes will be @ 15%, with some @ 25%. Only a small % of the Life Insurance proceeds will be needed to cover the conversion taxes. Either way, the maximum rate is lower than or the same as your BIL's rate (lower than ...
by David Jay
Fri Jun 16, 2017 12:25 pm
Forum: Personal Finance (Not Investing)
Topic: URGENT TIME SENSITIVE: Deathbed Roth
Replies: 45
Views: 4093

Re: URGENT TIME SENSITIVE: Deathbed Roth

The money to pay the taxes is going to have to come from somewhere...I guess kids could agree to split using life insurance money . ^^^^ This 15% of, say $80,000 is only $12,000. Otherwise you will have to make mandatory withdrawals from a larger inherited 401K over 5 years and pay your current tax...
by David Jay
Fri Jun 16, 2017 12:18 pm
Forum: Personal Finance (Not Investing)
Topic: URGENT TIME SENSITIVE: Deathbed Roth
Replies: 45
Views: 4093

Re: URGENT TIME SENSITIVE: Deathbed Roth

Top of the 15% tax bracket would save all the heirs some money (10% and 15% respectively). SS needs to be factored in, one way to do it is to use TurboTax (or equivalent) and do a sample tax return to see how the conversion impacts the taxation of his SS benefits. Do i use the total value of the IR...
by David Jay
Fri Jun 16, 2017 12:13 pm
Forum: Personal Finance (Not Investing)
Topic: URGENT TIME SENSITIVE: Deathbed Roth
Replies: 45
Views: 4093

Re: URGENT TIME SENSITIVE: Deathbed Roth

Top of the 15% tax bracket would save all the heirs some money (10% and 15% respectively). SS needs to be factored in, one way to do it is to use TurboTax (or equivalent) and do a sample tax return to see how the conversion impacts the taxation of his SS benefits. [edit] There is no "tax basis&...
by David Jay
Fri Jun 16, 2017 10:36 am
Forum: Investing - Help with Personal Investments
Topic: Amazon [stock]
Replies: 25
Views: 2277

Re: Amazon [stock]

Valuethinker wrote:Bezos is smarter than I am (no kidding ;-)).

The humility. It burns!

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