Search found 9350 matches

by David Jay
Thu Oct 15, 2020 3:09 pm
Forum: Investing - Theory, News & General
Topic: examining index methods and market caps
Replies: 10
Views: 746

Re: examining index methods and market caps

Immunomedics, with just over a 20B market cap appears to be the largest company in VB, the Vanguard small cap ETF. So 20B appears to be their cutoff point. Etsy is #5, so it likely will also leave the small cap fund shortly if it continues to grow. I think what is throwing you off is the SP500 index...
by David Jay
Thu Oct 15, 2020 2:52 pm
Forum: Personal Investments
Topic: Advice on Transferring Out of Edward Jones
Replies: 3
Views: 420

Re: Advice on Transferring Out of Edward Jones

Welcome to the forum! First, one should always work with the brokerage house receiving the transfer . They will have the incentive to make sure things will go smoothly. You don't indicate how much of which funds you hold, but most of what you have are ETF type funds which will transfer "in -kind" (t...
by David Jay
Thu Oct 15, 2020 2:17 pm
Forum: Personal Investments
Topic: SEP to Roth at Ameriprise and then to Vanguard Roth
Replies: 1
Views: 148

Re: SEP to Roth at Ameriprise and then to Vanguard Roth

Can I have the funds that get deposited into my SEP IRA (within the next two months) and then rolled over immediately to my Roth IRA at Ameriprise, also be transferred to my Roth IRA at Vanguard in the same year ? Once the money is in your Roth account, you can do anything you want with it. It is a...
by David Jay
Wed Oct 14, 2020 4:52 pm
Forum: Investing - Theory, News & General
Topic: Amplify High Income ETF (YYY)
Replies: 7
Views: 749

Re: Amplify High Income ETF (YYY)

Would consider a fund like Vanguard LifeStategy Income (a 20/80 fund) to be a portion of one's fixed income allocation?

Over 5 years, YYY is up 28% and VASIX (VG LS Income) is up 31%.
by David Jay
Wed Oct 14, 2020 2:50 pm
Forum: Investing - Theory, News & General
Topic: Amplify High Income ETF (YYY)
Replies: 7
Views: 749

Re: Amplify High Income ETF (YYY)

Would you consider YYY to be a component of your fixed income allocation?

I see that YYY is holding 17% stocks to boost return.
by David Jay
Wed Oct 14, 2020 1:49 pm
Forum: Personal Investments
Topic: Roth IRA switch from vtsax?
Replies: 10
Views: 850

Re: Roth IRA switch from vtsax?

You have switched to betting. That is the vernacular for “single-company risk”.

You could do well or you could do poorly. But really, a P/E of 1200?
by David Jay
Wed Oct 14, 2020 11:07 am
Forum: Investing - Theory, News & General
Topic: How do Bogleheads cope with not beating the market?
Replies: 142
Views: 10591

Re: How do Bogleheads cope with not beating the market?

Are you a golfer? Bogleheads is scratch golf. But it is not simply averaging par, it is par on every hole. No birdies. No bogies. Par every hole. Which is better than most professionals. You probably "make the cut" on tour most weekends. I can live with that. But if indexing isn't exciting enough f...
by David Jay
Tue Oct 13, 2020 4:39 pm
Forum: Investing - Theory, News & General
Topic: Confused by Bogle's apparent dislike of ETFs
Replies: 101
Views: 8184

Re: Confused by Bogle's apparent dislike of ETFs

No one has yet explained to me how mutual funds are any better behaviorally than ETFs. You can still market time and trade with mutual funds, you are just limited to doing so once per day. By definition, there can be no day trading of Mutual Funds (using the definition of day trading that includes ...
by David Jay
Tue Oct 13, 2020 11:57 am
Forum: Investing - Theory, News & General
Topic: Stories of speculation before investing
Replies: 16
Views: 1247

Re: Stories of speculation before investing

Welcome to the forum!

I am a recovering stock picker. I finally figured out that I could not consistently beat the market so I finally gave in to the logic of "par (from golf) and spend my time and effort doing other things.
by David Jay
Tue Oct 13, 2020 11:37 am
Forum: Investing - Theory, News & General
Topic: How do Bogleheads cope with not beating the market?
Replies: 142
Views: 10591

Re: How do Bogleheads cope with not beating the market?

Are you a golfer? Bogleheads is scratch golf. But it is not simply averaging par, it is par on every hole. No birdies. No bogies. Par every hole. Which is better than most professionals. You probably "make the cut" on tour most weekends. I can live with that. But if indexing isn't exciting enough fo...
by David Jay
Mon Oct 12, 2020 6:48 pm
Forum: Personal Investments
Topic: Ascensus requires financial advisor for Solo 401k?
Replies: 8
Views: 464

Re: Ascensus requires financial advisor for Solo 401k?

I did a quick search and see a lot of mentions of the Ascensus “plan documents” that are used by many brokerage houses (TDA, Schwab, Vanguard, etc.) for a Solo-401k but in that quick search (not exhaustive, I admit) I did not find anyone actually using Ascensus for their Solo-401k account. I would r...
by David Jay
Mon Oct 12, 2020 5:57 pm
Forum: Personal Finance (Not Investing)
Topic: Life Insurance Beneficiaries - Individuals or Trust?
Replies: 10
Views: 661

Re: Life Insurance Beneficiaries - Individuals or Trust?

senex wrote: Mon Oct 12, 2020 10:36 am4) (I don't count this one, because I find it unethical) Wife can pretend she is poor to exploit govt poverty programs
That would be an irrevocable trust. We have a revocable trust, established strictly to give our two adult children a “one-stop” estate resource.
by David Jay
Mon Oct 12, 2020 10:09 am
Forum: Personal Investments
Topic: Take pension as $550k lump sum or $2,400 monthly annuity?
Replies: 29
Views: 5654

Re: Take pension as $550k lump sum or $2,400 monthly annuity?

Just was told that he looked I to it and his SS benefit should be about $29k the first year . At what age? Far too many people just assume that they should start SS when they retire. Spending some of his 401K money to delay claiming SS (After retirement) provides higher inflation protected income. ...
by David Jay
Mon Oct 12, 2020 9:52 am
Forum: Investing - Theory, News & General
Topic: Individual Stocks - 5-10% of Portfolio "Play Money" - YES or NO?
Replies: 91
Views: 4981

Re: Individual Stocks - 5-10% of Portfolio "Play Money" - YES or NO?

The problem is with this part: "in a risky basket of stocks, hoping to get a 10X multiplier" because you're never going to get 10x from the whole basket. If you're lucky, you get one or two winners. My dad does this. Yeah, he did really well investing in Amgen and Starbux in the late 90s and still ...
by David Jay
Mon Oct 12, 2020 9:35 am
Forum: Personal Finance (Not Investing)
Topic: Life Insurance Beneficiaries - Individuals or Trust?
Replies: 10
Views: 661

Re: Life Insurance Beneficiaries - Individuals or Trust?

I would definitely change the beneficiary if the trust is inactive - that is very dangerous. Who knows what would happen to the payment and who knows how long it would take to unravel. Definitely change the beneficiary to “your name”. Secondly, the trust should either be updated and funded or else i...
by David Jay
Sun Oct 11, 2020 9:17 pm
Forum: Investing - Theory, News & General
Topic: Individual Stocks - 5-10% of Portfolio "Play Money" - YES or NO?
Replies: 91
Views: 4981

Re: Individual Stocks - 5-10% of Portfolio "Play Money" - YES or NO?

Nathan: Speaking as a recovering stock picker, make certain that you accurately track your performance. You will hear lots of people say that they are “pleased” with their performance. I know I was. My portfolio was growing nicely. Until I was challenged by an early back-and-forth with a regular her...
by David Jay
Sat Oct 10, 2020 10:19 pm
Forum: Personal Investments
Topic: Review My Windfall Plan
Replies: 6
Views: 1388

Re: Review My Windfall Plan

Welcome to the forum! My plan with the inheritance is to max my 401k and use the windfall to supplement the lost money in my paycheck every month. Is this a good strategy? Yes, this is the plan I have recommended many times. "Max-out" your 401K. Use some of the inheritance money each month in your b...
by David Jay
Sat Oct 10, 2020 10:10 pm
Forum: Investing - Theory, News & General
Topic: 401k, Roth 401k and Backdoor Roth IRA theory
Replies: 9
Views: 689

Re: 401k, Roth 401k and Backdoor Roth IRA theory

The one thing to consider (in the context of all your other retirement accounts) is that you can - effectively - get better results from $19,500 in a Roth than $19,500 in a regular 401K because you are paying the tax before the $19,500. If you put $19,500 in a traditional 401K the government has a c...
by David Jay
Sat Oct 10, 2020 8:43 pm
Forum: Personal Finance (Not Investing)
Topic: Investing in real estate - what is your opinion?
Replies: 53
Views: 4589

Re: Investing in real estate - what is your opinion?

With no landlord experience, buying your very first rental out-of-state is a recipe for disaster.
by David Jay
Sat Oct 10, 2020 8:29 pm
Forum: Personal Investments
Topic: Funds v ETF - frequent purchases
Replies: 13
Views: 675

Re: Funds v ETF - frequent purchases

stay with the mutual funds for now. you can always convert to etf later if you need to move out of vanguard. converting to etf from the same mutual fund is not a taxable event at vanguard. This! Because Vanguard ETFs are just a share class of the Mutual Fund, you can convert “instantly” with no tax...
by David Jay
Sat Oct 10, 2020 7:59 pm
Forum: Personal Investments
Topic: Early Retirement Plan - Seeking guidance again
Replies: 8
Views: 1245

Re: Early Retirement Plan - Seeking guidance again

mgp wrote: Sat Oct 10, 2020 7:54 pmThe bonds your refer to are in taxable correct ? What short term bonds you use ? Corporate or treasury ?
No, I hold them in a tIRA. So your situation is a bit more complicated than mine.

I use Vanguard Short Term Bond Fund (mix of corporate and treasury).
by David Jay
Sat Oct 10, 2020 7:39 pm
Forum: Investing - Theory, News & General
Topic: 401k, Roth 401k and Backdoor Roth IRA theory
Replies: 9
Views: 689

Re: 401k, Roth 401k and Backdoor Roth IRA theory

We need to get our terms correct. Is your company offering an "After-tax 401K" or a "Roth 401K"? I suspect your employer is offering an "After Tax 401K" if they are saying that the new plan provides for additional contribution space, with a "Roth 401K" the $19,500 limit (total) applies to the combin...
by David Jay
Sat Oct 10, 2020 6:01 pm
Forum: Personal Investments
Topic: Early Retirement Plan - Seeking guidance again
Replies: 8
Views: 1245

Re: Early Retirement Plan - Seeking guidance again

We are in a very similar stage of life - retired, age 63, anticipate delaying SS to age 69 or 70, something between 50K and 60K living expenses. The big difference is that I have a portfolio less than half your size, so I see no red flags with your plan. I retired with an AA of 45/55 and I am spendi...
by David Jay
Sat Oct 10, 2020 5:47 pm
Forum: Personal Investments
Topic: Mirror Accounts or Allocate For Tax Efficiency?
Replies: 7
Views: 635

Re: Mirror Accounts or Allocate For Tax Efficiency?

Welcome to the forum! The most common advice here on BH is to treat your entire portfolio as one account, not trying to replicate your asset allocation in every account. Then select the most tax-efficient location for each type of fund. Here is the Wiki on tax efficient fund placement: https://www.b...
by David Jay
Sat Oct 10, 2020 3:22 pm
Forum: Personal Finance (Not Investing)
Topic: Life Insurance and Living Trust
Replies: 4
Views: 273

Re: Life Insurance and Living Trust

Life insurance payouts are normally tax free (federal). What taxes did he think he would avoid?
by David Jay
Sat Oct 10, 2020 3:19 pm
Forum: Investing - Theory, News & General
Topic: NFCU Certificate Rates Drop Again
Replies: 13
Views: 1500

Re: NFCU Certificate Rates Drop Again

And we are not done with the trend...
by David Jay
Sat Oct 10, 2020 3:15 pm
Forum: Investing - Theory, News & General
Topic: "Bonds as a way to generate cash if the stock market is in the toilet"
Replies: 93
Views: 5340

Re: Wretchedly low return on bonds--game over

You must be able to stay the course with your 85+ percent stock allocation when the market drops 50%, which it could well do another time or two in your lifetime. Do you have the intestinal fortitude to do that? First and foremost, you need to set an Asset Allocation that you can hold through thick ...
by David Jay
Sat Oct 10, 2020 1:12 pm
Forum: Personal Investments
Topic: Limited income and Roth IRA and Roth 401k
Replies: 5
Views: 430

Re: Limited income and Roth IRA and Roth 401k

Thus, I think you can contribute to your Roth IRA up to the lesser of $6K (or $7K if age 50 by 12/31) or your compensation found in Box 1 of any W-2 that you get. Box 1 will probably have your insurance payments subtracted from your pay, but not your FICA and medicare taxes. This is a great point. ...
by David Jay
Sat Oct 10, 2020 10:55 am
Forum: Personal Investments
Topic: Limited income and Roth IRA and Roth 401k
Replies: 5
Views: 430

Re: Limited income and Roth IRA and Roth 401k

livesoft wrote: Sat Oct 10, 2020 10:50 am
David Jay wrote: Sat Oct 10, 2020 10:45 amSo any pre-tax contributions reduce your “taxable income”. Looks like $3000 is all you can contribute.
Yeah, I re-read “Roth 401K” after posting, but I didn’t get it edited fast enough.
by David Jay
Sat Oct 10, 2020 10:45 am
Forum: Personal Investments
Topic: Limited income and Roth IRA and Roth 401k
Replies: 5
Views: 430

Re: Limited income and Roth IRA and Roth 401k

That is a great question. Here is the definitive language from IRS Publication 590-A: Roth IRAs only. If contributions are made only to Roth IRAs, your contribution limit generally is the lesser of: - $6,000 ($7,000 if you are age 50 or older), or - Your taxable compensation. Any pre-tax contributio...
by David Jay
Sat Oct 10, 2020 8:38 am
Forum: Personal Finance (Not Investing)
Topic: Spousal SS benefits
Replies: 7
Views: 1354

Re: Spousal SS benefits

Click on this link: https://www.ssa.gov/benefits/forms/

The second item on the list is “Retirement or Spouse’s Benefits”. Click on that item. Follow the instructions.
by David Jay
Thu Oct 08, 2020 4:30 pm
Forum: Personal Finance (Not Investing)
Topic: Age 50++ - When to "self-insure", i.e., cancel Disability and Term Life Insurance policies
Replies: 18
Views: 2343

Re: Age 50++ - When to "self-insure", i.e., cancel Disability and Term Life Insurance policies

I dropped my term life insurance (before the term expired) at age 58 as there was no longer a need for the policy. My wife was fully provided for from our portfolio at that point.
by David Jay
Thu Oct 08, 2020 3:17 pm
Forum: Investing - Theory, News & General
Topic: Is this the worse time to FIRE?
Replies: 20
Views: 1795

Re: Is this the worse time to FIRE?

tomtoms wrote: Thu Oct 08, 2020 2:59 pmIt seems like the stock market has peaked.
The market spends most (something like 60%) of its time at-or-near all time highs. The SP500 is about 5% below it’s all time high, which makes the current market conditions very normal.
by David Jay
Thu Oct 08, 2020 3:03 pm
Forum: Personal Investments
Topic: Feedback on Aggressive Portfolio (Late 20s)
Replies: 27
Views: 2135

Re: Feedback on Aggressive Portfolio (Late 20s)

Six different brokers? You can do an “in-kind” transfer and get all of your taxable in one account without any tax implications (this is just for simplification). 5. It was very tiresome typing all of this, and has made me realize how many investments I have spread out across so many accounts . Shou...
by David Jay
Wed Oct 07, 2020 2:44 pm
Forum: Personal Investments
Topic: PONAX - help me understand it
Replies: 9
Views: 907

Re: PONAX - help me understand it

This is a bond fund (Pimco Income A), it holds bonds with a relatively short duration. Interest rates have dropped, so income from this fund will drop. With an adjusted expense ratio of .89, income is likely to remain low for some period of time (at least a couple of years). The problem is there rea...
by David Jay
Wed Oct 07, 2020 2:27 pm
Forum: Personal Investments
Topic: Buying Order: Allocation Strategy or Pricing Strategy
Replies: 11
Views: 643

Re: Buying Order: Allocation Strategy or Pricing Strategy

Definitely #1. And interestingly enough, once you achieve your target AA, you will be accomplishing #2 indirectly as you continue to direct your contributions to maintain your AA as follows: If, say, US Stocks make a big gain, you will be underweight International and REIT. Conversely if, say, Inter...
by David Jay
Tue Oct 06, 2020 5:05 pm
Forum: Personal Investments
Topic: Muni Bonds/Funds
Replies: 11
Views: 1896

Re: Muni Bonds/Funds

What is your marginal tax rate? If you are in the 22% tax bracket (~$195,000 after standard deduction) then Muni’s likely don’t make sense.

If you are in the 32% or 35% bracket then Munis may well make sense.
by David Jay
Tue Oct 06, 2020 4:51 pm
Forum: Investing - Theory, News & General
Topic: Do you think it's worth to slice & dice for lower ER
Replies: 11
Views: 1032

Re: Do you think it's worth to slice & dice for lower ER

rkhusky wrote: Tue Oct 06, 2020 3:18 pmOr add more stocks.
This! A 10% shift (to equity) of your total portfolio will almost certainly do more for your return than any tweaking of the “fixed income” portIon.
by David Jay
Tue Oct 06, 2020 2:07 pm
Forum: Investing - Theory, News & General
Topic: Dying Broke (On Purpose) Article
Replies: 138
Views: 10924

Re: Dying Broke (On Purpose) Article

I was moved to change my plans when I read Taylor say that they purchased annuities (SPIA :happy) to meet all their needs so they could give to their kids while they were still alive. Most of us can't forecast "all [our] needs" or how much they'll cost - that's the problem. Obviously there's a poin...
by David Jay
Tue Oct 06, 2020 9:35 am
Forum: Investing - Theory, News & General
Topic: Do you think it's worth to slice & dice for lower ER
Replies: 11
Views: 1032

Re: Do you think it's worth to slice & dice for lower ER

In my opinion, you are working way too hard to gain a one digit basis point yield improvement. 4.2 basis points is an additional $4.20 for every $10,000 invested.

There is no fixed income yield at this time. We just have live with that.
by David Jay
Tue Oct 06, 2020 8:12 am
Forum: Personal Investments
Topic: Life Strategy Fund Tax Implications
Replies: 31
Views: 2418

Re: Life Strategy Fund Tax Implications

If you have tax-advantaged space (IRA, 401K, 403B, etc.) available, the common recommendation is to hold bonds in tax advantaged and equity funds in taxable. This would involve using the 3-fund portfolio (or similar) instead of a single LifeStrategy. The LifeStrategy family is a "fund-of-funds" prod...
by David Jay
Mon Oct 05, 2020 9:22 pm
Forum: Personal Investments
Topic: Beginner question... VTSAX vs. the field?
Replies: 12
Views: 1297

Re: Beginner question... VTSAX vs. the field?

There are, literally, thousands of other US stock funds. But VTSAX holds the entire US Market in the same proportion as the stock market. So you hold everything in this fund, you are fully diversified in the US stock market. If you start adding other stock funds, you don’t diversify , you concentrat...
by David Jay
Mon Oct 05, 2020 6:37 pm
Forum: Personal Finance (Not Investing)
Topic: Should I sell bonds to eliminate PMI?
Replies: 10
Views: 664

Re: Should I sell bonds to eliminate PMI?

Welcome to the forum! I think I would sell the bonds (I presume they are in a taxable account). You are paying taxes on the bond income - such as it is these days. There should be a relatively small amount capital gains, in comparison to a stock fund, because bond funds pay out the interest every mo...
by David Jay
Mon Oct 05, 2020 6:30 pm
Forum: Investing - Theory, News & General
Topic: Fidelity Zero funds vs Vanguard performance
Replies: 59
Views: 7332

Re: Fidelity Zero funds vs Vanguard performance

First, in theory, the people running the index should be completely separate from the portfolio manager. The index return is posted daily and is maintained by a 3rd party, S&P. The FZROX index is proprietary and is not (to my knowledge) accessible by the investor. If you can point me to a place whe...
by David Jay
Mon Oct 05, 2020 4:42 pm
Forum: Personal Investments
Topic: Let Dad's Deferred Annuity Annuitize?
Replies: 7
Views: 628

Re: Let Dad's Deferred Annuity Annuitize?

Whoever convinced your folks to put IRA money into deferred annuities should be placed in stocks for 24 hours (minimum) in the public square and be pelted with rotten tomatoes by the crowd as they jeer the criminal. That being said, if they have no need of an additional income stream then the annuit...
by David Jay
Mon Oct 05, 2020 4:31 pm
Forum: Investing - Theory, News & General
Topic: Fidelity Zero funds vs Vanguard performance
Replies: 59
Views: 7332

Re: Fidelity Zero funds vs Vanguard performance

First, in theory, the people running the index should be completely separate from the portfolio manager. The index return is posted daily and is maintained by a 3rd party, S&P. The FZROX index is proprietary and is not (to my knowledge) accessible by the investor. If you can point me to a place whe...
by David Jay
Mon Oct 05, 2020 4:26 pm
Forum: Personal Investments
Topic: Feedback on plans to organize my finances
Replies: 8
Views: 578

Re: Feedback on plans to organize my finances

What's the interest rate on the mortgage? 2.875% What are the fund options in your 401k, with ticker symbols and expense ratios? PIMCO LOW DURATION INSTL - PTLDX - 0.87% PIMCO TOTAL RETURN - PTTRX - 0.70% PIMCO FOREIGN BOND INSTL - PFUIX - 0.63% VANGUARD/WELLINGTON ADMIRAL - VWENX - 0.17% DFA U.S. ...
by David Jay
Mon Oct 05, 2020 3:00 pm
Forum: Personal Investments
Topic: Feedback on plans to organize my finances
Replies: 8
Views: 578

Re: Feedback on plans to organize my finances

Welcome to the forum! Everything looks good to me except for the Roth contributions. You are solidly in the 22% tax bracket so I would recommend increasing your 401K contribution by 6K instead of contributing to the Roth. The variable in this recommendation is your 401K expense. If all your funds ha...
by David Jay
Mon Oct 05, 2020 2:54 pm
Forum: Investing - Theory, News & General
Topic: Fidelity Zero funds vs Vanguard performance
Replies: 59
Views: 7332

Re: Fidelity Zero funds vs Vanguard performance

I'm still waiting to see evidence that Fidelity loses money on these funds. Don't worry, you won't. Your statement is irrefutable. That is an advantage of a proprietary index. How does one tease-out the different sources of the minute differences in performance when you can't assign the "index" por...
by David Jay
Mon Oct 05, 2020 1:30 pm
Forum: Personal Finance (Not Investing)
Topic: CPA/Tax Strategist in Ohio
Replies: 4
Views: 303

Re: CPA/Tax Strategist in Ohio

It isn't rocket surgery, I figured it out. :wink:

(retired last year at age 62)