Search found 9897 matches

by David Jay
Sun Jan 17, 2021 9:30 pm
Forum: Personal Consumer Issues
Topic: Radio Frequency Interference Issue
Replies: 3
Views: 336

Re: Radio Frequency Interference Issue

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...
by David Jay
Sun Jan 17, 2021 7:30 pm
Forum: Personal Investments
Topic: Late 60s retiring mom...50/50 okay?
Replies: 6
Views: 934

Re: Late 60s retiring mom...50/50 okay?

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.
by David Jay
Sat Jan 16, 2021 10:51 pm
Forum: Personal Investments
Topic: North American Annuity
Replies: 38
Views: 1752

Re: North American Annuity

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.
by David Jay
Sat Jan 16, 2021 10:33 pm
Forum: Personal Investments
Topic: North American Annuity
Replies: 38
Views: 1752

Re: North American Annuity

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...
by David Jay
Sat Jan 16, 2021 10:30 pm
Forum: Personal Investments
Topic: North American Annuity
Replies: 38
Views: 1752

Re: North American Annuity

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" ...
by David Jay
Sat Jan 16, 2021 10:21 pm
Forum: Personal Investments
Topic: North American Annuity
Replies: 38
Views: 1752

Re: North American Annuity

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...
by David Jay
Sat Jan 16, 2021 6:56 pm
Forum: Personal Investments
Topic: Dimensional Funds
Replies: 9
Views: 772

Re: Dimensional Funds

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 ...
by David Jay
Sat Jan 16, 2021 5:30 pm
Forum: Personal Investments
Topic: Taxation when shifting money between funds
Replies: 3
Views: 375

Re: Taxation when shifting money between funds

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...
by David Jay
Sat Jan 16, 2021 1:43 pm
Forum: Investing - Theory, News & General
Topic: Is the portability of ETFs worth much?
Replies: 42
Views: 2135

Re: Is the portability of ETFs worth much?

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...
by David Jay
Sat Jan 16, 2021 12:16 pm
Forum: Personal Investments
Topic: Roth Withdrawal to pay tax
Replies: 10
Views: 721

Re: Roth Withdrawal to pay tax

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...
by David Jay
Sat Jan 16, 2021 10:21 am
Forum: Personal Investments
Topic: More aggressive fund for savings past emergency fund?
Replies: 2
Views: 501

Re: More aggressive fund for savings past emergency fund?

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...
by David Jay
Sat Jan 16, 2021 10:14 am
Forum: Personal Investments
Topic: Undervalued Stock Picks
Replies: 1
Views: 224

Re: Undervalued Stock Picks

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 ...
by David Jay
Fri Jan 15, 2021 2:19 pm
Forum: Personal Investments
Topic: $4 in IRA - how to clear it out so I can do backdoor Roth conversions?
Replies: 14
Views: 966

Re: $4 in IRA - how to clear it out so I can do backdoor Roth conversions?

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. :wink:
by David Jay
Fri Jan 15, 2021 2:15 pm
Forum: Personal Finance (Not Investing)
Topic: New house vs. Addition
Replies: 30
Views: 1382

Re: New house vs. Addition

ChicagoWolverine wrote: Fri Jan 15, 2021 2:10 pmI prefer staying married to my lovely wife :)
Wow, your priorities are really messed up! :wink:
by David Jay
Fri Jan 15, 2021 2:06 pm
Forum: Personal Finance (Not Investing)
Topic: New house vs. Addition
Replies: 30
Views: 1382

Re: New house vs. Addition

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.
by David Jay
Fri Jan 15, 2021 10:58 am
Forum: Investing - Theory, News & General
Topic: Is the portability of ETFs worth much?
Replies: 42
Views: 2135

Re: Is the portability of ETFs worth much?

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...
by David Jay
Fri Jan 15, 2021 10:53 am
Forum: Personal Investments
Topic: Vanguard Suggestion for Inflation Hedge
Replies: 11
Views: 1188

Re: Vanguard Suggestion for Inflation Hedge

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.
by David Jay
Fri Jan 15, 2021 10:48 am
Forum: Investing - Theory, News & General
Topic: Is the portability of ETFs worth much?
Replies: 42
Views: 2135

Re: Is the portability of ETFs worth much?

Is this in taxable or in retirement accounts?
by David Jay
Fri Jan 15, 2021 10:36 am
Forum: Personal Investments
Topic: VTWAX Balancing
Replies: 7
Views: 544

Re: VTWAX Balancing

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...
by David Jay
Fri Jan 15, 2021 9:59 am
Forum: Personal Investments
Topic: Vanguard Target Retirement Income vs LifeStrategy Conservative Growth
Replies: 9
Views: 906

Re: Vanguard Target Retirement Income vs LifeStrategy Conservative Growth

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...
by David Jay
Thu Jan 14, 2021 7:03 pm
Forum: Personal Investments
Topic: RMD Questions
Replies: 19
Views: 1682

Re: RMD Questions

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 ...
by David Jay
Thu Jan 14, 2021 6:52 pm
Forum: Personal Investments
Topic: "Traditional" vs "Rollover" IRAs
Replies: 14
Views: 804

Re: "Traditional" vs "Rollover" IRAs

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.
by David Jay
Thu Jan 14, 2021 6:36 pm
Forum: Personal Investments
Topic: Max amount percentage wise allowed to IRA.
Replies: 16
Views: 996

Re: Max amount percentage wise allowed to IRA.

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...
by David Jay
Thu Jan 14, 2021 4:59 pm
Forum: Personal Finance (Not Investing)
Topic: mortgage life insurance
Replies: 26
Views: 835

Re: mortgage life insurance

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...
by David Jay
Thu Jan 14, 2021 4:58 pm
Forum: Personal Finance (Not Investing)
Topic: mortgage life insurance
Replies: 26
Views: 835

Re: mortgage life insurance

Can you buy a joint life term policy?
by David Jay
Thu Jan 14, 2021 4:56 pm
Forum: Personal Investments
Topic: Rebalancing portfolio help
Replies: 7
Views: 303

Re: Rebalancing portfolio help

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-...
by David Jay
Thu Jan 14, 2021 4:41 pm
Forum: Personal Finance (Not Investing)
Topic: mortgage life insurance
Replies: 26
Views: 835

Re: mortgage life insurance

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...
by David Jay
Thu Jan 14, 2021 4:35 pm
Forum: Personal Investments
Topic: RMD Questions
Replies: 19
Views: 1682

Re: RMD Questions

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...
by David Jay
Thu Jan 14, 2021 4:08 pm
Forum: Personal Finance (Not Investing)
Topic: mortgage life insurance
Replies: 26
Views: 835

Re: mortgage life insurance

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...
by David Jay
Thu Jan 14, 2021 3:10 pm
Forum: Personal Finance (Not Investing)
Topic: mortgage life insurance
Replies: 26
Views: 835

Re: mortgage life insurance

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...
by David Jay
Thu Jan 14, 2021 3:02 pm
Forum: Personal Investments
Topic: RMD Questions
Replies: 19
Views: 1682

Re: RMD Questions

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...
by David Jay
Thu Jan 14, 2021 10:51 am
Forum: Personal Investments
Topic: Opening a high yield savings account at an online-only bank as a FI/FIRE step
Replies: 37
Views: 2277

Re: Opening a high yield savings account at an online-only bank as a FI/FIRE step

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...
by David Jay
Thu Jan 14, 2021 10:16 am
Forum: Personal Finance (Not Investing)
Topic: Future date mortgage payoff - real or nominal?
Replies: 15
Views: 540

Re: Future date mortgage payoff - real or nominal?

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, ...
by David Jay
Thu Jan 14, 2021 10:02 am
Forum: Personal Investments
Topic: Max amount percentage wise allowed to IRA.
Replies: 16
Views: 996

Re: Max amount percentage wise allowed to IRA.

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
by David Jay
Thu Jan 14, 2021 9:55 am
Forum: Investing - Theory, News & General
Topic: thoughts on the most interesting investing article I have read in years
Replies: 20
Views: 3829

Re: thoughts on the most interesting investing article I have read in years

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...
by David Jay
Wed Jan 13, 2021 9:44 pm
Forum: Personal Finance (Not Investing)
Topic: Can we both retire?
Replies: 18
Views: 3244

Re: Can we both retire?

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...
by David Jay
Wed Jan 13, 2021 9:31 pm
Forum: Personal Investments
Topic: Pay no Tax + Max out Retirement Accounts?
Replies: 15
Views: 1954

Re: Pay no Tax + Max out Retirement Accounts?

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 ...
by David Jay
Wed Jan 13, 2021 9:24 pm
Forum: Personal Finance (Not Investing)
Topic: Move to Panhandle of FL?
Replies: 18
Views: 2353

Re: Move to Panhandle of FL?

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 ...
by David Jay
Wed Jan 13, 2021 9:00 pm
Forum: Investing - Theory, News & General
Topic: Vanguard's Total Stock (VTSAX) vs. Extended Market (VEXAX)
Replies: 15
Views: 1209

Re: Vanguard's Total Stock (VTSAX) vs. Extended Market (VEXAX)

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...
by David Jay
Wed Jan 13, 2021 8:44 pm
Forum: Personal Finance (Not Investing)
Topic: Move to Panhandle of FL?
Replies: 18
Views: 2353

Re: Move to Panhandle of FL?

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.
by David Jay
Wed Jan 13, 2021 7:12 pm
Forum: Investing - Theory, News & General
Topic: What might cause a market correction ( 15-20% ) again
Replies: 103
Views: 7178

Re: What might cause a market correction ( 15-20% ) again

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...
by David Jay
Wed Jan 13, 2021 6:42 pm
Forum: Personal Investments
Topic: Administrative fee as loss in the after-tax account?
Replies: 4
Views: 381

Re: Administrative fee as loss in the after-tax account?

There is really no such thing as a "loss" inside a Roth IRA. You can't offset anything with a loss inside a Roth.
by David Jay
Wed Jan 13, 2021 6:34 pm
Forum: Investing - Theory, News & General
Topic: Why QQQ instead of Tobacco stocks?
Replies: 29
Views: 2544

Re: Why QQQ instead of Tobacco stocks?

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...
by David Jay
Wed Jan 13, 2021 5:44 pm
Forum: Personal Investments
Topic: Schwab: Introducing Wasmer Schroeder Strategies.
Replies: 9
Views: 1173

Re: Schwab: Introducing Wasmer Schroeder Strategies.

.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).
by David Jay
Wed Jan 13, 2021 5:31 pm
Forum: Investing - Theory, News & General
Topic: PSHAX vs VMFXX [PIMCO Short-Term vs. Vanguard Fed Money Market]
Replies: 1
Views: 148

Re: PSHAX vs VMFXX [PIMCO Short-Term vs. Vanguard Fed Money Market]

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...
by David Jay
Wed Jan 13, 2021 5:20 pm
Forum: Personal Investments
Topic: Probably not the first "Back Door" Roth question
Replies: 18
Views: 928

Re: Probably not the first "Back Door" Roth question

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...
by David Jay
Wed Jan 13, 2021 4:30 pm
Forum: Personal Investments
Topic: Roth IRA questions after account transfer
Replies: 9
Views: 490

Re: Roth IRA questions after account transfer

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 ...
by David Jay
Wed Jan 13, 2021 3:22 pm
Forum: Personal Investments
Topic: Roth IRA questions after account transfer
Replies: 9
Views: 490

Re: Roth IRA questions after account transfer

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.
by David Jay
Wed Jan 13, 2021 3:06 pm
Forum: Personal Investments
Topic: Taxes on 2020 Roth Conversion - Pay When?
Replies: 25
Views: 1283

Re: Taxes on 2020 Roth Conversion - Pay When?

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.