Bogleheads.org

David Jay

The FCC questions are “spot-on”. Something in your speaker system is rectifying the signal. A loose wire could be the rectifier. A bad ground could accentuate the problem. A “field-fix” would be to put a ferrite bead on every speaker wire coming into the main control enclosure. That will significant...

David Jay

If she leaves it in VG Target Retirement 2020 the equity percentage will continue to drop for the next 5 years and at the end of that time it will be converted to Vanguard Target Retirement Income (permanent 30/70 AA) in about 2025 or 2026.

David Jay

MNTINX:

The annuity salesman is telling you there is no risk. Please ask the annuity salesman for the minimum guaranteed return after 10 years. This is the amount of your investment that they guarantee that you will receive back after 10 years.

David Jay

If I don't withdraw in 10 years, I don't need to pay any fees. There is no charges when I start to withdraw money. You will need to pay taxes on all of the gains from this policy when you take the money out. How old are you? If you are less than 59.5 when you withdraw you will be subject to a 10% p...

David Jay

Stinky: Have you seen this before? The SP500 MARC 5% Index is an index that includes commodities and Treasuries, sort of a "balanced" index. I guess participation rates were getting so low as to be embarrassing. So they created a lower-performance index and kept the name "SP500" ...

David Jay

To be very clear and very plain: Your "advisor" wants to sell you a fixed index annuity because he will make a 6% to 8% commission on the entire amount of money you put into that product. That is his sole object, he is taking advantage of his relationship to you, he is not operating in you...

David Jay

Welcome to the forum! There are some devotees of Dimensional Funds here. The problem has been that they only offered their funds to retail investors through an advisor. The “drag” of the advisor fee makes it very difficult to match a simple index portfolio in a D-Y-I portfolio. Some people have DFA ...

David Jay

An exchange of funds will be taxed as a “sale” of the first fund. You will pay taxes on the difference between the original purchase price of the fund and the current value of the fund. Most of the gain will likely be taxed at your long term capital gains tax rate if you have held this fund for more...

David Jay

Grantham on BH: https://www.google.com/search?sitesearc ... q=Grantham

He has called all 37 of the last 4 downturns in the market.

David Jay

If you prefer mutual funds, why not just wait to switch to ETFs if/when you decide to transfer to another brokerage? I believe that “conversion” without tax implications is only available for Vanguard mutual funds held by Vanguard brokerage. This is unique to Vanguard because Vanguard ETFs are a sh...

David Jay

If the market remains the same, there is no difference between paying tax by withholding from the conversion or by withholding from the Roth withdrawal. You only gain if the market goes up, you lose if the market goes down. And you only gain the difference in the taxes on the withheld amount. Exampl...

David Jay

Welcome to the forum! It is really, really hard to outperform the market. There is no high-percentage likelihood that taking more risk is going to generate more return. But you could get lucky, who knows? If one can’t achieve your goals without market outperformance, I would be tempted to leverage T...

David Jay

Welcome to the forum! Here is a link to the Boglehead Philosophy: https://www.bogleheads.org/wiki/Bogleheads%C2%AE_investment_philosophy But now I'm ready to gamble! ... So give me your picks! So far I've gone with airlines, entertainment (DIN, PLAY, cruise lines, AMC), some commercial/office REITS ...

David Jay

123 wrote: ↑Fri Jan 15, 2021 1:50 pmIf you're under 59 1/2 a tax penalty would apply.

Oh, no! Another 41 cents of tax penalty.

David Jay

ChicagoWolverine wrote: ↑Fri Jan 15, 2021 2:10 pmI prefer staying married to my lovely wife

Wow, your priorities are really messed up!

David Jay

If the other homes in the neighborhood are also in the 1800 sq ft range, then a major expansion is not a good investment.

If you have a small home in a neighborhood of larger homes then it probably makes sense.

David Jay

Is this in taxable or in retirement accounts? Taxable. For me, if I was going to hold Vanguard funds at Schwab in a taxable account, I think I would select ETFs for portability. I much prefer Mutual Funds, so I hold Vanguard mutual funds at Vanguard. If I moved to Schwab, I would hold Schwab mutual...

David Jay

How about a TIPS (Treasury Inflation Protected Securities) fund? A TIPS fund is designed for your purpose.

Gold does not react only to to inflation. Gold is way up right now (so you will be buying near highs) and there is essentially no inflation at the moment.

David Jay

Is this in taxable or in retirement accounts?

David Jay

I just don't want to have to worry that some person can come into the company and ruin the fund my managing it poorly. An index fund follows an index. The index for VTWAX is " FTSE All Cap Global Index " (you can view this in the fund Prospectus). No one at Vanguard makes any active decis...

David Jay

No wrong answer. I would select the one that puts your AA where you want it. I am a little bit concerned that you seem to be more concerned about the details (TIP fund, etc) than you are about AA. AA is the master control knob for growth versus stability. If any AA (within reason) is OK with you, ho...

David Jay

There is no divisor in the 10-year rule. The entire amount must be distributed in ten years. You can wait and take it all the last year (maybe not the best for taxes). Does this mean you have complete control over how the amount is distributed? So, for example, you can distribute it evenly over 10 ...

David Jay

Triple digit golfer wrote: ↑Thu Jan 14, 2021 6:32 pmHow is a traditional IRA after tax?

By making contributions in a given year and not claiming any deduction that year.

David Jay

I am not married and I have an LLC. So If i make 60K, I would be able to put $15,000 in one account and then $6000 in an additional account and that is all? thanks You can put the $15k in a solo 401k as the "employer", and $19,500 in the solo 401k as the "employee". $6k in a nor...

David Jay

At that age, the premium will be substantial. And you have already said that it will be challenging to stay in the 15% bracket. Higher annual expenses doesn't seem like a solution to the 15% bracket decision. Maybe you need to reconsider your commitment to both: (1) carry a mortgage in retirement a...

David Jay

Can you buy a joint life term policy?

David Jay

Welcome to the forum! You haven’t given us nearly enough information. How much money is involved, what are the gains in the various funds you want to sell, what is your marginal tax rate, etc. All of those are factors in deciding how quickly to sell each of these funds and move the money into the 3-...

David Jay

At that age, the premium will be substantial. And you have already said that it will be challenging to stay in the 15% bracket. Higher annual expenses doesn't seem like a solution to the 15% bracket decision. Maybe you need to reconsider your commitment to both: (1) carry a mortgage in retirement a...

David Jay

In addition, let's say the husband had inherited an IRA from his father when his father died in 2011. Questions. ... And would this mean that the rule about the IRA needing to be paid out in 10 years wouldn't apply here? The 10 year rule is for IRAs inherited in 2020 and after. Because this was inh...

David Jay

At that age, the premium will be substantial. And you have already said that it will be challenging to stay in the 15% bracket. Higher annual expenses doesn't seem like a solution to the 15% bracket decision. Maybe you need to reconsider your commitment to both: (1) carry a mortgage in retirement a...

David Jay

At that age, the premium will be substantial. And you have already said that it will be challenging to stay in the 15% bracket. Higher annual expenses doesn't seem like a solution to the 15% bracket decision. Maybe you need to reconsider your commitment to both: (1) carry a mortgage in retirement an...

David Jay

In addition, let's say the husband had inherited an IRA from his father when his father died in 2011. Questions. ... And would this mean that the rule about the IRA needing to be paid out in 10 years wouldn't apply here? The 10 year rule is for IRAs inherited in 2020 and after. Because this was inh...

David Jay

Freddie: As a Michigander, Lake Michigan Credit Union offers 3% on $15,000 ($30,000 if spouse opens separate checking account). There are a few hoops, like a minimum number of debit transactions, but those are pretty easy. They have maintained the 3% for a number of years, this is not an "intro...

David Jay

If everything else in that financial model is being modeled in "real" dollars (inflation-adjusted), I don't see why you should not enter $82,035 as the future mortgage payoff ... I do think that 2% inflation rate is a tad higher though; I would model it assuming only 1.5% inflation rate, ...

David Jay

As a business owner, you have extra vehicles available. Look at Simple-IRA and Solo-401K here:

https://www.bogleheads.org/wiki/Solo_401(k)_plan

https://www.bogleheads.org/wiki/SIMPLE_IRA

David Jay

Things shift around over the years, the British Pound was the world's reserve currency until World War II and the US Dollar took its place. After that and the shedding of the British Empire, the Pound is still a strong currency and the United Kingdom still has a very productive economy. UK living s...

David Jay

And that doesn't include Social Security which I can start pulling in 2-3 years, he can start pulling in 10-11 years. Both of us would get around $20,000 a year even if we pulled at age 62-63. I get mine pretty soon which should help a lot. I strongly recommend you use http://opensocialsecurity.com...

David Jay

Welcome to the forum! 2. Would it be possible to roll the negative tax balance forward? I've read you can do it for 20 years, but I wasn't sure if it was applied to business or individual filers. Nope, sorry, one cannot carry over a negative individual income tax balance. But "zero" ain't ...

David Jay

Not to mention, I must be getting old, because I am starting to not enjoy the snow like I used to. We will arrive in the Panhandle next week (by RV) and will stay on the gulf shore for 6 weeks. I love the snow, but I find that 4 or 5 weeks of winter is plenty. We stayed there with our RV for a few ...

David Jay

I was thinking that some may hold both to control diversification . Total is ~75% large cap and Extended is about ~25% large cap. So Extended could be used to as a counterweight, adding more mid/small cap. Total Stock is a fully-diversified, cap-weighted US stock fund. By "adding" Extende...

David Jay

tman9940 wrote: ↑Wed Jan 13, 2021 8:40 pm Not to mention, I must be getting old, because I am starting to not enjoy the snow like I used to.

We will arrive in the Panhandle next week (by RV) and will stay on the gulf shore for 6 weeks. I love the snow, but I find that 4 or 5 weeks of winter is plenty.

David Jay

The question then arises what can you be defensive in? Stocks are in a bubble and bonds are in a epic bubble. Cash is not king with paltry interest rates. Real estate is getting frothy as well, and also not sure how can you count on the rental income coming in if everything else implodes. What is l...

David Jay

There is really no such thing as a "loss" inside a Roth IRA. You can't offset anything with a loss inside a Roth.

David Jay

What is the point you are trying to make? My Mark 1 eyeball clearly identifies the issues: A tech ETF opened in about 1999 was headed for an early drop Over any starting date since 2002 (to present) QQQ has outperformed. Are you making the point that start dates make a big difference - 22 years vers...

David Jay

.55% ER to build and maintain a bond ladder is a lot of expense when bonds are paying so little.

https://www.schwab.com/wasmer-schroeder/bond-ladders (See the FAQ at the bottom of the page).

David Jay

Employer plan has these two funds that I am considering as "cash-like" option to move some money into as hedge against coming market correction. Looking for closest thing to stuffing some cash into mason jars in case Dow goes to 18k in the next few months. Leaning heavy to VMFXX but not s...

David Jay

So when you convert tIRA to Roth IRA, do you close the traditional account and have to open a new one when you do it every year, or does it just roll the funds over? The tIRA will stay open (but empty). You don’t convert the tIRA to Roth, you convert the money in the tIRA account to the Roth IRA ac...

David Jay

Thank you. I edited the post to show the names of the funds. Let me know if any other information would be helpful. Welcome to the forum! There are a zillion (technical term) different funds, it is best to spell out the names of funds in order to get help. We are pleased to help but I have no idea ...

David Jay

Welcome to the forum!

There are a zillion (technical term) different funds, it is best to spell out the names of funds in order to get help. We are pleased to help but I have no idea what DGRO or MFEKX are.

David Jay

mikejuss wrote: ↑Wed Jan 13, 2021 2:55 pmBut what is the significance of January 15, 2021? Why does the payment need to be made by then?

Estimated taxes are quarterly events, income earned in the 4th quarter is due January 15.

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