Search found 5993 matches

by David Jay
Thu Jan 03, 2019 10:24 am
Forum: Personal Consumer Issues
Topic: What is the truth - paper towels vs. electric hand dryer?
Replies: 38
Views: 2284

Re: What is the truth - paper towels vs. electric hand dryer?

I always prefer paper towel because I can use it to open the door when leaving. washing is rather pointless otherwise if you have to grab a filthy door handle on your way out. This is what some of the cruise ships (remember norovirus?) have implemented for public restrooms. Paper towels and a dispo...
by David Jay
Wed Jan 02, 2019 10:13 pm
Forum: Personal Finance (Not Investing)
Topic: Northwestern Mutual Whole Life Insurance (65 Life)
Replies: 61
Views: 3481

Re: Northwestern Mutual Whole Life Insurance (65 Life)

I am also investigating how to best file a complaint with NWM and the BBB regarding NWM's misleading sales practice. Complaining to NWM is a waste of your breath, this is how they do business. It is by deliberate design. A BBB complaint may impact some future potential victim, so that complaint cou...
by David Jay
Wed Jan 02, 2019 9:42 pm
Forum: Investing - Theory, News & General
Topic: 96 percent of stocks are no better then TBills
Replies: 51
Views: 8005

Re: Hendrik Bessembinder paper, active over passive?

Or the classic Will Rogers commentary on the market:

“Only buy stocks that go up. If it doesn’t go up, don’t buy it.”
by David Jay
Wed Jan 02, 2019 9:24 pm
Forum: Investing - Help with Personal Investments
Topic: Buy Low, Sell High
Replies: 12
Views: 1208

Re: BUY LOW SELL HIGH

price PER SHARE. the more shares, the better . NOPE . The share value of mutual funds indicates exactly nothing. It is just the size of the container. And there is no standard container size in the mutual fund world. Which is a better deal, milk for 75 cents or milk for 3 dollars? (Hint: you don’t ...
by David Jay
Wed Jan 02, 2019 9:18 pm
Forum: Investing - Theory, News & General
Topic: What do you think of this advice?
Replies: 62
Views: 4222

Re: What do you think of this advice?

l1am wrote:
Wed Jan 02, 2019 8:15 pm
1. Learn how to perform at least basic technical analysis.
“Technical” market analysis is the modern day equivalent of the witch doctor examining chicken entrails to foretell the future. The guy who coined the term “technical analysis” for a pattern fitting exercise was a marketing genius.
by David Jay
Wed Jan 02, 2019 6:32 pm
Forum: Investing - Theory, News & General
Topic: Gus Sauter: the next "Bogleheads on Investing" podcast guest
Replies: 28
Views: 1893

Re: Gus Sauter: the next "Bogleheads on Investing" podcast guest

Please ask him his opinion of the terminal outcome of the “rush-to-the-bottom” on ERs and account minimums (Schwab-no minimums, Fidelity-Zero funds, etc.). Where does it all shake out in the end?
by David Jay
Wed Jan 02, 2019 4:35 pm
Forum: Investing - Theory, News & General
Topic: Roll over to Roth or Annuity at Retirement
Replies: 8
Views: 288

Re: Roll over to Roth or Annuity at Retirement

An annuity is a type of investment within an account (like stocks, bonds, CDs, etc.), it is not a type of account. You can buy an annuity if you choose with the money inside a tIRA, for instance. But this is a separate issue from the question of whether to keep the assets in an employer 401K or roll...
by David Jay
Wed Jan 02, 2019 4:31 pm
Forum: Investing - Theory, News & General
Topic: Roll over to Roth or Annuity at Retirement
Replies: 8
Views: 288

Re: Roll over to Roth or Annuity at Retirement

A tax deferred 401K provides many options: 1. Leave it in the 401K with your employer 2. Rollover to a traditional IRA (often tIRA here at BH) with no immediate tax consequences 3. Rollover to a Roth IRA and pay taxes on the entire balance at your resulting (total of your income + 401K balance) tax ...
by David Jay
Wed Jan 02, 2019 12:55 pm
Forum: Investing - Help with Personal Investments
Topic: Target date fund vs Intelligent portfolio
Replies: 36
Views: 1587

Re: Target date fund vs Intelligent portfolio

You need to go a bit deeper than just the "date" on a Target Date fund, you need to be comfortable with the Asset Allocation of the fund. Most 2055 or 2060 funds are 90% stocks. For some people, the asset allocation of, say, a 2030 fund (even if they aren't planning to retire for 30 years) may be mo...
by David Jay
Wed Jan 02, 2019 12:50 pm
Forum: Investing - Theory, News & General
Topic: Can I trust a fund/index?
Replies: 12
Views: 822

Re: Can I trust a fund/index?

Should I research the index every time I want to invest in a fund to be sure the index actually is what it sounds like it is, and is actually a good benchmark for what it claims to be? Is this level of paranoia necessary/prudent, or is it an unnecessary waste of time to read further than the prospe...
by David Jay
Tue Jan 01, 2019 9:55 am
Forum: Investing - Help with Personal Investments
Topic: What is the expected real return of S&P 500 for the next 30 years?
Replies: 51
Views: 4334

Re: What is the expected real return of S&P 500 for the next 30 years?

Grt2bOutdoors wrote:
Tue Jan 01, 2019 9:52 am
David Jay wrote:
Tue Jan 01, 2019 8:39 am
Grt2bOutdoors wrote: It’s a pipe dream to expect 7% real.
I believe the OP meant 7% nominal.
Thread says “expected real return”.
I stand corrected. And I agree that 7% real is unrealistic.
by David Jay
Tue Jan 01, 2019 9:08 am
Forum: Personal Finance (Not Investing)
Topic: Northwestern Mutual Whole Life Insurance (65 Life)
Replies: 61
Views: 3481

Re: Northwestern Mutual Whole Life Insurance (65 Life)

The columns of "cash surrender value" (columns 6 and 7) show the TOTAL cash value in the policy. Meanwhile, the premium column (column 5) shows the total premium starting in year 3. This conveniently ignores the premiums for years 1 and 2. Wow. Just wow. I don’t think of myself as naive, but I neve...
by David Jay
Tue Jan 01, 2019 8:59 am
Forum: Investing - Theory, News & General
Topic: CNN Headline: The Dow finishes off its worst December since the Great Depression
Replies: 15
Views: 2652

Re: CNN Headline: The Dow finishes off its worst December since the Great Depression

heyyou wrote:
Tue Jan 01, 2019 1:28 am
CNN needs to have new headlines every day, as do all of the media. I salute their creativity but not their sensationalism.
CNN has become the official “mountain out of a molehill” network: OMG, UCMJ violation!
by David Jay
Tue Jan 01, 2019 8:39 am
Forum: Investing - Help with Personal Investments
Topic: What is the expected real return of S&P 500 for the next 30 years?
Replies: 51
Views: 4334

Re: What is the expected real return of S&P 500 for the next 30 years?

Grt2bOutdoors wrote: It’s a pipe dream to expect 7% real.
I believe the OP meant 7% nominal.
by David Jay
Mon Dec 31, 2018 3:43 pm
Forum: Investing - Help with Personal Investments
Topic: Orphaned Roth IRA
Replies: 19
Views: 1361

Re: Orphaned Roth IRA

Roth space is very valuable (trust me, if I had another $100,000 in Roth it would revolutionize my choices in the years between retirement and Medicare). I would not risk Roth space “swinging for the fences”, but I would put it in equities.
by David Jay
Mon Dec 31, 2018 2:02 pm
Forum: Personal Finance (Not Investing)
Topic: Impact of Bobrow ruling on multi year Roth conversions
Replies: 7
Views: 548

Re: Impact of Bobrow ruling on multi year Roth conversions

Okay Richard:

No change in practice, no limit on the number of tIRA-to-Roth conversions (which are considered to be a form of roll-over, but not one that is affected by the one-per-year rule).
by David Jay
Mon Dec 31, 2018 1:47 pm
Forum: Investing - Theory, News & General
Topic: Questions for the BH “All Stars”
Replies: 23
Views: 2101

Re: Questions for the BH “All Stars”

RE: #1 - The time it takes to open a brokerage account (or employer 401K). I will quote from”Neurosphere”, his signature line says: “ If you have to ask if a Target Date fund is right for you, it is ” Start there, then begin your continuing education program. Only leave your TD fund after you have w...
by David Jay
Mon Dec 31, 2018 1:19 pm
Forum: Investing - Help with Personal Investments
Topic: Where to invest next? Maxed out Roth, no 401k. Taxable or tIRA?
Replies: 27
Views: 1581

Re: Where to invest next? Maxed out Roth, no 401k. Taxable or tIRA?

You are limited to $5500 (6000 in 2019) of contributions to all styles of IRA combined. If you have “maxed out” your Roth, you are not allowed to contribute additional to a tIRA. So scratch that option off the list.

If you are married, your spouse may also contribute $5500 to an IRA.
by David Jay
Mon Dec 31, 2018 12:27 pm
Forum: Investing - Help with Personal Investments
Topic: New Boglehead: Portfolio Advice
Replies: 34
Views: 1905

Re: New Boglehead: Portfolio Advice

Move all of your Fidelity Freedom funds to Fidelity Freedom Index funds. Save about 70% on fees.

Fildelity does not make the cheaper funds easy to find...
by David Jay
Mon Dec 31, 2018 12:18 pm
Forum: Investing - Help with Personal Investments
Topic: What is the expected real return of S&P 500 for the next 30 years?
Replies: 51
Views: 4334

Re: What is the expected real return of S&P 500 for the next 30 years?

nisiprius wrote:
Mon Dec 31, 2018 11:31 am
...as a planning guesstimate, forget "7%". Think "7% ± 3%
I like this construction.

Set your savings rate based on 4%, review in 20 years. Retire early (or to a more lavish lifestyle) if you get 7% (or 10%).
by David Jay
Mon Dec 31, 2018 10:31 am
Forum: Personal Finance (Not Investing)
Topic: First time to do backdoor Roth...
Replies: 3
Views: 256

Re: First time to do backdoor Roth...

Question - when making the deposits into the new traditional IRAs, wouldn't it make sense to deposit in the same fund that my Roth is currently in so that the conversion is seamless (Vanguard Growth Life Strategy for myself and Vanguard Target Retirement 2060 for my wife)? I would not do that, I wo...
by David Jay
Mon Dec 31, 2018 10:22 am
Forum: Personal Finance (Not Investing)
Topic: Impact of Bobrow ruling on multi year Roth conversions
Replies: 7
Views: 548

Re: Impact of Bobrow ruling on multi year Roth conversions

Note that conversions are calendar-year limited (unlike contributions, that can be made until April 15 for the preceding
year), you must complete all 2019 conversions before December 31, 2019.
by David Jay
Mon Dec 31, 2018 10:10 am
Forum: Personal Finance (Not Investing)
Topic: Impact of Bobrow ruling on multi year Roth conversions
Replies: 7
Views: 548

Re: Impact of Bobrow ruling on multi year Roth conversions

My question is, does the Bobrow ruling mean that I need to wait 365 days from when I do my 2019 conversion until I do a conversion in 2020? No. Conversion from traditional IRA to Roth IRA is not a “rollover”. So limitations on rollovers have no impact on conversions. You may make as many Roth conve...
by David Jay
Sun Dec 30, 2018 3:32 pm
Forum: Investing - Help with Personal Investments
Topic: Social Security question
Replies: 23
Views: 2482

Re: Social Security question

... mine is 66 years, 4 months with a 1957 birth year Slightly off topic, but I noticed this because I also was born in 1957 - and when I look at the SSA Benefits Planner age table on the web, I see 66 years, 6 months for the 1957 birth year. I wonder what's up with that? You are right, my oops - m...
by David Jay
Sun Dec 30, 2018 12:25 pm
Forum: Investing - Help with Personal Investments
Topic: Is the Vanguard Balanced Index Fund all you need?
Replies: 94
Views: 20353

Re: Is the Vanguard Balanced Index Fund all you need?

Balanced Index holds Total US Stock and Total US Bond(2 funds) and rebalances to hold 60/40 This is a common misconception. The Vanguard Balanced Index fund does not hold these funds. This is explained right there at Vanguard.com. I saw the reference to CRSP Total Market Index, isn’t that the index...
by David Jay
Sun Dec 30, 2018 9:13 am
Forum: Investing - Help with Personal Investments
Topic: Is the Vanguard Balanced Index Fund all you need?
Replies: 94
Views: 20353

Re: Is the Vanguard Balanced Index Fund all you need?

If you want international diversification, LifeStrategy Moderate is also 60/40. How do the V LifeStrategy Moderate fund and the V balanced fund that the OP originally asked about differ? Balanced Index holds Total US Stock Index and Total US Bond Index and rebalances to hold 60/40 The LS fund famil...
by David Jay
Sat Dec 29, 2018 9:10 pm
Forum: Personal Finance (Not Investing)
Topic: Do Roth distributions affect MAGI?
Replies: 16
Views: 1485

Re: Do Roth distributions affect MAGI?

One Ping wrote:
Sat Dec 29, 2018 7:53 pm
And to be qualified you must have had it for 5 years or longer and be older that 59½, right?
For clarity: “it” is any Roth account.

If your first Roth has been open for 5 years and you are over 59.5, all distributions are qualified.
by David Jay
Sat Dec 29, 2018 8:51 pm
Forum: Investing - Help with Personal Investments
Topic: SPIA for 85 year old
Replies: 18
Views: 1507

Re: SPIA for 85 year old

This is a perfect application for an SPIA.
by David Jay
Sat Dec 29, 2018 4:39 pm
Forum: Investing - Help with Personal Investments
Topic: Orphaned Roth IRA
Replies: 19
Views: 1361

Re: Orphaned Roth IRA

I would not go “unconventional”, but I would go 100% stocks.
by David Jay
Sat Dec 29, 2018 10:40 am
Forum: Investing - Help with Personal Investments
Topic: Is 3.5% possible over next 30 years
Replies: 45
Views: 7277

Re: Is 3.5% possible over next 30 years

Rip: Welcome to the forum! I think the real “box” that you have put yourself in is the “10% maximum drawdown”. Your 3.5% goal is achievable with a reasonable stock allocation (going with total yield for income) but there will be an occasional drawdown that exceeds 20%, even with a 50/50 asset alloca...
by David Jay
Sat Dec 29, 2018 10:20 am
Forum: Investing - Theory, News & General
Topic: Fidelity beating vanguard now? switch to Fidelity?
Replies: 25
Views: 2523

Re: Fidelity beating vanguard now? switch to Fidelity?

It's only been a few months, but VTSAX has beaten FZROX over the latter's short existence. Yes, keep in mind that Fidelity “made up” their own index to keep costs low. There is also huge influx of new money into this new fund and that affects dividend distributions. I would wait at least a year to ...
by David Jay
Fri Dec 28, 2018 7:10 pm
Forum: Personal Finance (Not Investing)
Topic: Affordability of SS Delay
Replies: 19
Views: 1609

Re: Affordability of SS Delay

Tell me the date of each spouse’s demise and I can tell you the optimal financial plan.
by David Jay
Fri Dec 28, 2018 7:06 pm
Forum: Personal Consumer Issues
Topic: Pre Cruise Ft Lauderdale Hotel
Replies: 29
Views: 1314

Re: Pre Cruise Ft Lauderdale Hotel

Any hotel in the Area of the airport. The airport and the cruise terminal are within a couple of miles of each other.

Lots of other people have the same idea, so the night before departure of the large cruise ships hotel rooms are scarce, book early.
by David Jay
Fri Dec 28, 2018 11:12 am
Forum: Investing - Help with Personal Investments
Topic: VOO to VTI in 2019
Replies: 7
Views: 436

Re: VOO to VTI in 2019

Why do you say it is much cheaper to purchase VTI than VOO? Maybe you should also look at a different brokerage if you want to use Vanguard ETFs in a Roth IRA? I was thinking the same thing. Why, in this day and age, are you paying to purchase Vanguard ETFs in a Roth (which you are free to move to ...
by David Jay
Fri Dec 28, 2018 11:03 am
Forum: Investing - Theory, News & General
Topic: What are some critiques of passive investing/index funds?
Replies: 75
Views: 5698

Re: What are some critiques of passive investing/index funds?

What are some critiques of passive investing/or which critiques do you find most warranted ? I'll start.. when a stock's market cap increases, that means we buy more proportionally, and when a stock's market cap decreases, we buy less proportionally. One can argue you are increasingly always buying...
by David Jay
Fri Dec 28, 2018 10:55 am
Forum: Investing - Theory, News & General
Topic: What are some critiques of passive investing/index funds?
Replies: 75
Views: 5698

Re: What are some critiques of passive investing/index funds?

I think that the issue of corporate governance is an open issue. If indexing continues the current growth path, the time will come when the big mutual fund companies will be the majority stockholders in most major corporations. That may need to be addressed by the SEC. All other arguments are - to m...
by David Jay
Thu Dec 27, 2018 9:36 pm
Forum: Investing - Help with Personal Investments
Topic: Need help with Backdoor Roth IRA
Replies: 3
Views: 280

Re: Need help with Backdoor Roth IRA

Nope, looks like you got it.

Once all IRA balances are gone, execute your plan.
by David Jay
Thu Dec 27, 2018 9:01 pm
Forum: Investing - Theory, News & General
Topic: Are Index Funds Still Best?
Replies: 22
Views: 1523

Re: Are Index Funds Still Best?

Are you planning to rebalance to cap weight? Or are you going to let them all ride? How will you determine where to add new money? On your “couple of thousand”, your costs for an index mutual fund - using onourway’s 5bp - would be $1 per year (50 cents per thousand). So you are going to roll-your-own?
by David Jay
Thu Dec 27, 2018 5:21 pm
Forum: Personal Consumer Issues
Topic: [Peter Jackson’s “They shall not grow old” - now showing Jan 21]
Replies: 52
Views: 6632

Re: Impressive film in theater Dec 17 and 27 only

Just got home from the theater. All film in the entire picture is historic, nothing modern, no actors or CGI whatsoever. For those who don't know - Peter Jackson is a massive WWI buff. If you have read this entire thread, you know that Peter does an after-film commentary. In the commentary he discus...
by David Jay
Wed Dec 26, 2018 9:12 am
Forum: Investing - Help with Personal Investments
Topic: Options for CD interest payments at Vanguard?
Replies: 9
Views: 627

Re: Options for CD interest payments at Vanguard?

How about Vanguard Short Term Bond Fund? It has negligible volatility from interest rate announcements and SEC yield is over 3%.
by David Jay
Tue Dec 25, 2018 3:26 pm
Forum: Investing - Help with Personal Investments
Topic: Layered Annuities SPIA
Replies: 9
Views: 930

Re: Layered Annuities SPIA

Let’s try one more bump - other folks may be around on a holiday...
by David Jay
Tue Dec 25, 2018 11:50 am
Forum: Investing - Theory, News & General
Topic: What was your best investment in 2018?
Replies: 127
Views: 7241

Re: What was your best investment in 2018?

Vanguard Short Term Bond Fund

I put two years expenses into the fund in preparation for retirement in a few weeks. It’s up a few hundred bucks in the last 4 months (dividend reinvest).
by David Jay
Tue Dec 25, 2018 11:32 am
Forum: Investing - Help with Personal Investments
Topic: Anyone tired of the stock market going up?
Replies: 348
Views: 39349

Re: Anyone tired of the stock market going up?

We have missed you TL Started selling in February of 2018, blew out all international in Spring of 2018, have had 0 sleepless nights due to the almost Bear Market we are in. I am Class of 2019 (mid-January). I was fortunate have migrated from 100/0 to 50/50 over the past 3 years, so I have taken a l...
by David Jay
Tue Dec 25, 2018 9:39 am
Forum: Investing - Help with Personal Investments
Topic: Rebalancing Question
Replies: 1
Views: 186

Re: Rebalancing Question

Rebalance all the way to your AA. Anything less than that means more frequent rebalancing (same effect as narrowing your rebalancing bands).
by David Jay
Mon Dec 24, 2018 9:58 pm
Forum: Investing - Help with Personal Investments
Topic: Advice for "Little Old Lady" revised
Replies: 21
Views: 2627

Re: Advice for "Little Old Lady" revised

JLNichol wrote:
Mon Dec 24, 2018 7:40 pm
One more question: Is that a Boeing Stearman I see??
Very similar appearance - they come from the same era. The aircraft in the avatar is a Naval Aircraft Factory N3N.

Comparison of the two aircraft here: https://notastearman.wordpress.com/about-2/
by David Jay
Mon Dec 24, 2018 9:48 pm
Forum: Investing - Help with Personal Investments
Topic: Advice for "Little Old Lady" revised
Replies: 21
Views: 2627

Re: Advice for "Little Old Lady" revised

JLNichol wrote:
Mon Dec 24, 2018 8:21 pm
Thank you. I'll certainly consider the "three fund" approach.
Be careful and make sure you understand the tax implications before you change funds.
by David Jay
Mon Dec 24, 2018 9:47 pm
Forum: Investing - Help with Personal Investments
Topic: Advice for "Little Old Lady" revised
Replies: 21
Views: 2627

Re: Advice for "Little Old Lady" revised

To answer your question: my funds are with a broker. If I read you correctly, I should perhaps transfer to Vanguard directly? Yes, you could transfer your assets to Vanguard. Your broker is almost certainly charging you an annual fee that absorbs a significant portion of your dividends every year. ...
by David Jay
Mon Dec 24, 2018 9:23 pm
Forum: Investing - Theory, News & General
Topic: Very confused with the current market
Replies: 119
Views: 14931

Re: Very confused with the current market

...but I added XLE, the gas price is insane low. And you think low oil prices are GOOD for the energy sector? He might think that the energy sector is distressed and a good buy. I do not know what he is thinking, but fracking means that low crude prices are the new normal. $44 today. Wait until the...
by David Jay
Mon Dec 24, 2018 6:51 pm
Forum: Investing - Theory, News & General
Topic: Very confused with the current market
Replies: 119
Views: 14931

Re: Very confused with the current market

capcase wrote:
Mon Dec 24, 2018 6:13 pm
...but I added XLE, the gas price is insane low.
And you think low oil prices are GOOD for the energy sector?
by David Jay
Mon Dec 24, 2018 6:38 pm
Forum: Investing - Help with Personal Investments
Topic: Advice for "Little Old Lady" revised
Replies: 21
Views: 2627

Re: Advice for "Little Old Lady" revised

I ran your numbers - you have a very “vanilla” portfolio allocation, it is about 60% stocks and about 40% bonds. One “upside” to your income is that your bond fund dividends are continuing to go up as interest rates increase. The very low interest rates over the last 10 years has really been hard on...