Search found 10441 matches

by nedsaid
Sat Jan 05, 2013 8:26 pm
Forum: Investing - Help with Personal Investments
Topic: Help with portfolio [Active Military]
Replies: 12
Views: 1251

Re: Help with portfolio [Active Military]

I know the Bogleheads are a do it yourself forum. The reason that I think people should seek advice is that no matter how much you think through your financial issues, there is always something you didn't think of. An unbiased person can see things that you can't. Let me explain. We all have blind s...
by nedsaid
Sat Jan 05, 2013 1:19 am
Forum: Investing - Theory, News & General
Topic: request for your thoughts
Replies: 50
Views: 4495

Re: request for your thoughts

I am at a tipping point on tipping points.

It is a much overused phase.
by nedsaid
Sat Jan 05, 2013 1:07 am
Forum: Investing - Help with Personal Investments
Topic: Hartford's proprietary VTSMX fund
Replies: 11
Views: 1244

Re: Hartford's proprietary VTSMX fund

They are probably hiding the administrative fees. To see what they are, compare the annual return of the "fake" VTSMX fund with the return of the "real" fund at Vanguard. That will give you an idea of what you are getting charged. You probably won't be pleased when you see the result. If you see the...
by nedsaid
Sat Jan 05, 2013 12:55 am
Forum: Investing - Help with Personal Investments
Topic: At What Level Does a Portfolio Take Off?
Replies: 94
Views: 11887

Re: At What Level Does a Portfolio Take Off?

In my experience, once the portfolio got to $10K it started to take on a life of its own. At some point, the gains and earnings get to be more than the annual contributions. At $100K, the investments seemed like a swollen creek and later like a river at $200K. You can really see the effects of compo...
by nedsaid
Sat Jan 05, 2013 12:40 am
Forum: Investing - Help with Personal Investments
Topic: Help with portfolio [Active Military]
Replies: 12
Views: 1251

Re: Help with portfolio [Active Military]

Let me address returns. First, you have to compare apples to apples and oranges to oranges. You have to compare the investments you have with the appropriate benchmarks. For example, if you have a portfolio of 60% stocks and 40% bonds it would be inappropriate to compare it with the S&P 500. The S&P...
by nedsaid
Sat Jan 05, 2013 12:20 am
Forum: Investing - Help with Personal Investments
Topic: Help with portfolio [Active Military]
Replies: 12
Views: 1251

Re: Help with portfolio [Active Military]

Variable annuities can be explained as tax deferred mutual funds or as mutual funds inside an insurance wrapper. These are not ideal vehicles for retirement. First, the total expenses charged by the insurance company for the annuity are typically 0.90 percent to 1.25 percent or more. Then come the e...
by nedsaid
Fri Jan 04, 2013 11:23 pm
Forum: Investing - Help with Personal Investments
Topic: Help with portfolio [Active Military]
Replies: 12
Views: 1251

Re: Help with portfolio [Active Military]

I will take a stab at this. Ask around for a good fee-only planner that can analyze life insurance and variable annuity products. Or call Vanguard and ask for an annuity specialist. You can exchange these annuities for a Vanguard Variable Annuity that has rock-bottom annuity costs and rock-bottom fu...
by nedsaid
Fri Jan 04, 2013 10:48 pm
Forum: Investing - Theory, News & General
Topic: Tax Diversification
Replies: 25
Views: 2256

Re: Tax Diversification

What I should say is that you cannot get capital gains treatment from withdrawals from a Traditional IRA. Withdrawals from an IRA come out as Ordinary Income. If you have after tax contributions to an IRA, then you use Form 8606 to determine what portion of the withdrawal is taxable and what portion...
by nedsaid
Tue Jan 01, 2013 7:48 pm
Forum: Investing - Theory, News & General
Topic: Tax Diversification
Replies: 25
Views: 2256

Re: Tax Diversification

Man, I have a sinking feeling about this. If you are a participant in a workplace plan and you contribute to a Traditional IRA, your deductions are subject to the phase out limits. You may fall within those limits or may not. I suspect you are outside those limits and thus those contributions non-de...
by nedsaid
Tue Jan 01, 2013 7:20 pm
Forum: Investing - Theory, News & General
Topic: 2012 Market Returns in review
Replies: 10
Views: 1578

Re: 2012 Market Returns in review

I actually am working expenses down. I am doing a slice and dice portfolio as recommended by the folks at Merriman. Tilting towards small and value. I am utilizing index funds at my workplace plan. Indexes aren't available for all the asset classes I want. I have an IRA at a no-load mutual fund comp...
by nedsaid
Tue Jan 01, 2013 7:10 pm
Forum: Investing - Help with Personal Investments
Topic: Portfolio Comment
Replies: 9
Views: 1264

Re: Portfolio Comment

I will give you a hint after looking at your X-Ray. You need more small-cap. Market weight is about 9-10 percent and you have 5 percent. You are tilted towards value as I am. All depends on if you believe in the Value premium, which I do. Not all Bogleheads agree. Are you tilted towards Value by acc...
by nedsaid
Tue Jan 01, 2013 7:02 pm
Forum: Investing - Theory, News & General
Topic: 2012 Market Returns in review
Replies: 10
Views: 1578

Re: 2012 Market Returns in review

Ouch, I think I underperformed a bit. A blended index based on my allocations returned 12.39%. According to Quicken, I did about 11.5%. I think I did a little better than that, maybe 11.8% in 2012. Two things did it. First, value underperformed the broad market in 2012 and my portfolio is tilted tow...
by nedsaid
Tue Jan 01, 2013 6:43 pm
Forum: Investing - Theory, News & General
Topic: Tax Diversification
Replies: 25
Views: 2256

Re: Tax Diversification

Financial Dave, This stuff gets pretty complicated. This is why one just has to grind out the math and see what works best. You are correct that everyone has a zero tax bracket and that some distributions from a tax deferred account fall within that zero bracket. We need to take that into account. T...
by nedsaid
Tue Jan 01, 2013 6:38 pm
Forum: Investing - Theory, News & General
Topic: Tax Diversification
Replies: 25
Views: 2256

Re: Tax Diversification

Pretty much it boils down to this. If tax rates are higher in retirement than when working, the Roth wins. If tax rates are the same when working than when retired, the Roth and the 401k or Traditional IRA are a wash. If tax rates are lower in retirement than when working, the traditional tax-deferr...
by nedsaid
Tue Jan 01, 2013 6:31 pm
Forum: Investing - Theory, News & General
Topic: Tax Diversification
Replies: 25
Views: 2256

Re: Tax Diversification

I think one just has to sit down and work out the math to see what the best options are. I also believe in looking at the big financial picture first. Sometimes there are things you can do to minimize taxes that don't make as much sense when you look at the big picture. It is easy to get obsessed wi...
by nedsaid
Tue Jan 01, 2013 6:28 pm
Forum: Investing - Theory, News & General
Topic: Tax Diversification
Replies: 25
Views: 2256

Re: Tax Diversification

Good point about whether the IRA is deductible or non-deductible.

I think these folks should max their Roth IRA's and consider a Roth conversion of their Traditional IRA's.
by nedsaid
Tue Jan 01, 2013 6:25 pm
Forum: Investing - Theory, News & General
Topic: Tax Diversification
Replies: 25
Views: 2256

Re: Tax Diversification

The other thing to keep in mind if you are doing Roth conversions is if your Traditional IRAs have pre-tax money in them. If your Traditional IRA's have no pre-tax contributions in them, they can be converted to Roths with no tax on the original contributions. I am fairly certain that the earnings w...
by nedsaid
Tue Jan 01, 2013 6:15 pm
Forum: Investing - Theory, News & General
Topic: Tax Diversification
Replies: 25
Views: 2256

Re: Tax Diversification

He can maximize the IRA contributions and then put funds into the 401k. This is not all or nothing.
by nedsaid
Tue Jan 01, 2013 6:13 pm
Forum: Investing - Theory, News & General
Topic: Tax Diversification
Replies: 25
Views: 2256

Re: Tax Diversification

Tax diversification is actually a nifty concept. It makes sense to have funds in taxable, non-taxable, and tax free accounts. It is easy however to lose sight of the big picture and get too obsessed with taxes. Keep in mind we also want to maximize investment returns too. You will probably be in a l...
by nedsaid
Tue Jan 01, 2013 6:01 pm
Forum: Investing - Theory, News & General
Topic: Tax Diversification
Replies: 25
Views: 2256

Re: Tax Diversification

Danger Will Robinson!!! Danger!!! Danger!!! It sounds to me that your profit-sharing 401k utilizes a Variable Annuity. That is why you see the words "separate account" and "units". You will pay a lot in fees. Maybe your employer would be open to a lower cost plan. The owner or owners are probably in...
by nedsaid
Tue Jan 01, 2013 5:48 pm
Forum: Investing - Help with Personal Investments
Topic: Portfolio Comment
Replies: 9
Views: 1264

Re: Portfolio Comment

My take on taxes is don't let the tax tail wag the dog. It is easy to get obsessed with relatively small issues and ignore the big picture. If you have capital gains in your bond funds, sooner or later the fund company will make a capital gain distribution. You pay the tax on the distribution and if...
by nedsaid
Tue Jan 01, 2013 3:06 pm
Forum: Investing - Help with Personal Investments
Topic: World Bond Mutual Fund Help Needed
Replies: 9
Views: 1375

Re: World Bond Mutual Fund Help Needed

T Rowe Price and American Century also have International Bond Funds. Templeton has a good one, if you can get in without a load.
by nedsaid
Tue Jan 01, 2013 3:01 pm
Forum: Investing - Theory, News & General
Topic: "Mutual Fund Observer"
Replies: 1
Views: 595

Re: "Mutual Fund Observer"

Wow. There was a lot in that article.

Vanguard does great because of low costs and boring investments. Not much excitement but good performance.
by nedsaid
Tue Jan 01, 2013 2:54 pm
Forum: Investing - Help with Personal Investments
Topic: Portfolio Comment
Replies: 9
Views: 1264

Re: Portfolio Comment

I am amazed at what some of the posters on this forum have accumulated. You have done a great job on your finances. I think "all in one", target date funds, and balanced funds are great funds for a Roth. A moderate risk fund, a target date fund set at your approximate retirement date, or a good old ...
by nedsaid
Tue Jan 01, 2013 2:29 pm
Forum: Investing - Theory, News & General
Topic: The Boglehead Philosophy
Replies: 20
Views: 1799

Re: The Boglehead Philosophy

This should be taught in personal finance classes in every high school and college in the United States. Excellent advice.
by nedsaid
Tue Jan 01, 2013 2:27 pm
Forum: Investing - Help with Personal Investments
Topic: Thinking about increase my international AA
Replies: 12
Views: 1227

Re: Thinking about increase my international AA

I have seen recommendations of International being between 20 and 50 percent of monies allocated to stocks. The Vanguard articles shows the "sweet spot" of risk and reward to be 30 percent international. I think 50 percent makes a lot of sense. Right now I have International at 27 percent of my equi...
by nedsaid
Tue Jan 01, 2013 2:20 pm
Forum: Investing - Theory, News & General
Topic: What is your current Asset Allocation Policy and why?
Replies: 83
Views: 13118

Re: What is your current Asset Allocation Policy and why?

48 percent US Stocks, 18 percent International Stocks, 34 percent bonds and cash. I have tilted towards mid-cap and small-cap. The portfolio tilts towards value. 26.5 percent in index funds and index based ETFs (stocks and bonds). About 14 percent individual stocks that I rarely trade. A lot of no-l...
by nedsaid
Tue Jan 01, 2013 3:38 am
Forum: Investing - Help with Personal Investments
Topic: YAPC - Yet Another Portfolio Check (please)
Replies: 5
Views: 791

Re: YAPC - Yet Another Portfolio Check (please)

You are doing great!! My Gosh, over $1 million in a 401K and well pensioned. Hate to say it, consider a pre-nup before getting married. Pretty sad to even have to think about things like that. My cousin got pretty well drained by a second wife. But yet, getting married could be the greatest thing. N...
by nedsaid
Tue Jan 01, 2013 3:21 am
Forum: Personal Finance (Not Investing)
Topic: Are you rebalancing now?
Replies: 22
Views: 2339

Re: Are you rebalancing now?

I have not rebalanced. Somehow 2-3 percent from bonds does not exite me. Just checked my portfolio today. 2/3 stocks 1/3 bonds at age 53. A bit high in stocks at my age. My new money is going in at 60/40 stocks/bonds. I have been doing that for a long time. In 2007, I was up to 72/28 stocks/bonds an...
by nedsaid
Tue Jan 01, 2013 3:06 am
Forum: Investing - Help with Personal Investments
Topic: Parents need a complete financial overhaul. Need help.
Replies: 7
Views: 904

Re: Parents need a complete financial overhaul. Need help.

Are your parents really committed to this? Unless they have had a Damascus Road experience, my prediction is that you will run into a lot of resistance. A lifetime of spendthrift habits is difficult to break. I think you need a real heart to heart talk with them about what this means. What you want ...
by nedsaid
Tue Jan 01, 2013 2:54 am
Forum: Investing - Help with Personal Investments
Topic: Need Help with My Portfolio
Replies: 4
Views: 486

Re: Need Help with My Portfolio

Wow. 100 percent Emerging Markets.

Too aggressive. Don't forget Emerging Markets have in the past been nick-named Submerging Markets for good reason. This area of the market is very volatile.

I will ditto what MLewis had to say. Great comments.

Best wishes as you learn more about investing.
by nedsaid
Tue Jan 01, 2013 2:48 am
Forum: Investing - Theory, News & General
Topic: What was your 2012 return?
Replies: 275
Views: 26009

Re: What was your 2012 return?

2/3 Stocks and 1/3 bonds returned 11.3% for 2012. Not bad.
by nedsaid
Mon Dec 31, 2012 9:40 am
Forum: Personal Finance (Not Investing)
Topic: Using all of your savings on a first-time home down-payment
Replies: 26
Views: 2267

Re: Using all of your savings on a first-time home down-paym

I would not all my savings for a first-time down-payment. This is the definition of house poor.
by nedsaid
Mon Dec 31, 2012 9:39 am
Forum: Investing - Help with Personal Investments
Topic: Young Investor's Questions
Replies: 8
Views: 1372

Re: Young Investor's Questions

Yes, you should be interested in asset allocation at your age. In 1987, I had one stock mutual fund and on the day of the stock market crash was probably worth maybe $2,000. When the crash happened, I lost several hundred dollars but it seemed like all the money in the world. It seems silly now as a...
by nedsaid
Mon Dec 31, 2012 9:32 am
Forum: Investing - Theory, News & General
Topic: New Trend [Asset Allocation]
Replies: 24
Views: 2703

Re: New Trend

Maybe people aren't saving enough and are hoping that a stock heavy portfolio will bail them out. It might also have to do with interest rates being so low. This is why I have not rebalanced my portfolio, it is hard to be enthusiastic about 2-3 percent yields. I am still buying bond funds with 40 pe...
by nedsaid
Sat Dec 29, 2012 2:33 pm
Forum: Investing - Theory, News & General
Topic: NY Times article on investing over the past year
Replies: 12
Views: 2155

Re: NY Times article on investing over the past year

The investing climate is always uncertain. An informative chart shows the movement of the stock market since the 1920's. The roaring 20's, the Great Depression, World War II, the Korean War, the Suez Canal crisis, the Vietnam War, stagflation, etc. etc. etc. You see the market having its dips but on...
by nedsaid
Sat Dec 29, 2012 2:21 pm
Forum: Investing - Theory, News & General
Topic: Concerns about financial planner for my parents
Replies: 21
Views: 2001

Re: Concerns about financial planner for my parents

I mostly have been a do it yourself investor but I also have worked with four different stock brokers. Fortunately, I had good people who were already established and were not interested in churning my account. They were good guys and taught me a lot about investing. I bought a few loaded mutual fun...
by nedsaid
Sat Dec 29, 2012 2:04 pm
Forum: Investing - Help with Personal Investments
Topic: For those who hold individual stocks…
Replies: 34
Views: 5228

Re: For those who hold individual stocks…

Many years ago, a friend of mine went into the brokerage business. He lasted about a year but I moved my bank IRA to a brokerage account and started with individual stocks. Three brokers and one firm later, I still have the account. It was a good learning experience. Pretty much, I attempted to buy ...
by nedsaid
Thu Dec 27, 2012 9:49 pm
Forum: Personal Finance (Not Investing)
Topic: Have you ever temped?
Replies: 14
Views: 1915

Re: Have you ever temped?

I temped for almost two years. It helped me get experience in a new career. My last assignment ended up with me getting hired for a permanent job with real benefits!!
by nedsaid
Thu Dec 27, 2012 9:40 pm
Forum: Investing - Theory, News & General
Topic: How have Jim Cramer's stock picks performed?
Replies: 28
Views: 4545

Re: How have Jim Cramer's stock picks performed?

I respect Jim Cramer for what he accomplished running a hedge fund. Some consider him to be a very good financial journalist. But I would not try to implement his investing advice. Bit too crazy for me. He seems like a contrary indicator. It seemed whenever he was very bullish on the stock market th...
by nedsaid
Tue Dec 25, 2012 1:23 am
Forum: Investing - Help with Personal Investments
Topic: First Time Poster: Help me Plan my Financial Future
Replies: 28
Views: 3012

Re: First Time Poster: Help me Plan my Financial Future

Thanks for your thoughtful reply. As we get discussing this, I just see more and more issues come up. Someone that could help them see the big picture could be a real benefit to them. These guys can afford a good fee-only planner. Me, I went the cheap route because I didn't have the money to pay adv...
by nedsaid
Tue Dec 25, 2012 1:06 am
Forum: Investing - Help with Personal Investments
Topic: First Time Poster: Help me Plan my Financial Future
Replies: 28
Views: 3012

Re: First Time Poster: Help me Plan my Financial Future

Great question. There are different schools of thought about how to allocate portfolios. I am of the school of thought that taxable and tax deferred portfolios should be allocated the same after taking into account emergency funds. I think Rick Ferri is of this school of thought. From a purely tax s...
by nedsaid
Tue Dec 25, 2012 12:39 am
Forum: Investing - Help with Personal Investments
Topic: First Time Poster: Help me Plan my Financial Future
Replies: 28
Views: 3012

Re: First Time Poster: Help me Plan my Financial Future

Like Columbo, always one more thing. I gave the 401k model portfolio as a starting place. Don't get hung up on the detail and getting the portfolio perfect. That is one reason my portfolio got complicated. I kept tinkering and trying to improve it. With tinkering came complexity. Get the big picture...
by nedsaid
Tue Dec 25, 2012 12:15 am
Forum: Investing - Help with Personal Investments
Topic: First Time Poster: Help me Plan my Financial Future
Replies: 28
Views: 3012

Re: First Time Poster: Help me Plan my Financial Future

I think the poster is concerned about people that overbuy their house and are "house poor." What I mean by that is that the payments are so high that people sit in a beautiful house but can't afford to do anything or go anywhere. Housepayments, property tax, maintenance, cleaning all costs money. In...
by nedsaid
Tue Dec 25, 2012 12:02 am
Forum: Investing - Help with Personal Investments
Topic: First Time Poster: Help me Plan my Financial Future
Replies: 28
Views: 3012

Re: First Time Poster: Help me Plan my Financial Future

I don't know. The people that I have known over the years that were financially successful had non-descript automobiles and nice homes. Automobiles tend to depreciate and homes (until the subprime crisis) tended to appreciate. Get yourself a nice home. Look at it as a place to live and if you make m...
by nedsaid
Mon Dec 24, 2012 11:48 pm
Forum: Investing - Help with Personal Investments
Topic: First Time Poster: Help me Plan my Financial Future
Replies: 28
Views: 3012

Re: First Time Poster: Help me Plan my Financial Future

The three fund approach is beautiful. Total US Stock Market, Total US Bond Market, Total International Stock. You can't go wrong with that. One of my weaknesses as an investor is that I collected investing styles. I started with a value approach with individual stocks. Then I went to no-load funds. ...
by nedsaid
Mon Dec 24, 2012 11:16 pm
Forum: Investing - Help with Personal Investments
Topic: First Time Poster: Help me Plan my Financial Future
Replies: 28
Views: 3012

Re: First Time Poster: Help me Plan my Financial Future

I have been investing for almost 30 years. I have owned a lot of things: individual stocks, no-load funds, load funds, index funds, ETF's, zero coupon bonds, CD's, a variable annuity, savings bonds, and good old fashioned money in the bank. I have had IRAs, a Roth IRA, 401k, and a 403b. I know how t...
by nedsaid
Mon Dec 24, 2012 10:59 pm
Forum: Investing - Help with Personal Investments
Topic: First Time Poster: Help me Plan my Financial Future
Replies: 28
Views: 3012

Re: First Time Poster: Help me Plan my Financial Future

I would steer you clear of buying individual stocks. It takes lots of time to properly analyze the stocks and to run a portfolio. If I had it to do over again, I would have started at Vanguard and mostly invested in their index funds. Stock index funds over time are in the top quartile. The longer t...
by nedsaid
Mon Dec 24, 2012 10:50 pm
Forum: Investing - Help with Personal Investments
Topic: First Time Poster: Help me Plan my Financial Future
Replies: 28
Views: 3012

Re: First Time Poster: Help me Plan my Financial Future

Do you need an advisor? I would recommend that you go to a fee only financial advisor and spend a few hundred dollars to get your questions answered. You will learn a lot and the money will be well spent. You will learn a lot about how the financial planning process works. Some mutual fund companies...
by nedsaid
Mon Dec 24, 2012 10:21 pm
Forum: Investing - Help with Personal Investments
Topic: First Time Poster: Help me Plan my Financial Future
Replies: 28
Views: 3012

Re: First Time Poster: Help me Plan my Financial Future

The monies set aside for your house downpayment should be in money markets, in the bank, and/or short term bond funds. Five years is too short of a time for stocks. Keep in mind that short term bond funds will fluctuate in value a little bit. Your house down payment needs to be conservatively invest...