Search found 10642 matches

by David Jay
Mon May 10, 2021 5:48 pm
Forum: Personal Investments
Topic: ESS (Employee Stock Plan) - can I hedge during the holding period?
Replies: 4
Views: 267

Re: ESS (Employee Stock Plan) - can I hedge during the holding period?

Have you reviewed your primary Employee Handbook for company stock limitations? My reference was not to the ESPP regarding shorting or optioning stock, it is often a company-wide policy.
by David Jay
Mon May 10, 2021 5:45 pm
Forum: Personal Investments
Topic: Why not put everything in SPHD and be done with it?
Replies: 21
Views: 2405

Re: Why not put everything in SPHD and be done with it?

EfficientInvestor wrote: Mon May 10, 2021 4:45 pm Because it has underperformed the S&P 500 by 4%/year since inception and has been more volatile than the S&P 500 since inception.
Nice. The "Low Volatility" named fund has higher volatility than the parent SP500.
by David Jay
Mon May 10, 2021 5:17 pm
Forum: Personal Investments
Topic: ESS (Employee Stock Plan) - can I hedge during the holding period?
Replies: 4
Views: 267

Re: ESS (Employee Stock Plan) - can I hedge during the holding period?

A number of folks here participate in company stock purchase plans, use the search box above for ESPP, a generic term for these plans. Some sell as soon as they can, others wait the full 12 months to sell to get the lower LTCG tax rate. There is a wide range of ESS plans, so the specifics of your em...
by David Jay
Mon May 10, 2021 1:21 pm
Forum: Personal Finance (Not Investing)
Topic: What prompted you to pull the plug and retire?
Replies: 78
Views: 4852

Re: What prompted you to pull the plug and retire?

I was getting a day older every single day.

[edit] And my Dad passed at age 67...
by David Jay
Mon May 10, 2021 11:33 am
Forum: Personal Investments
Topic: Moving Vanguard Mutual Fund to Equivalent ETF - Confirming No Tax Consequence
Replies: 8
Views: 641

Re: Moving Vanguard Mutual Fund to Equivalent ETF - Confirming No Tax Consequence

Vanguard is unique in that their ETFs are a different share class of the same fund . If you follow their conversion process (do not sell and re-buy) there is no tax consequence because you still hold the same fund. Link: https://investor.vanguard.com/etf/faqs Can I convert my conventional Vanguard m...
by David Jay
Mon May 10, 2021 10:57 am
Forum: Personal Investments
Topic: "No Transaction Fee" Mutual Funds at TD Ameritrade
Replies: 4
Views: 381

Re: "No Transaction Fee" Mutual Funds at TD Ameritrade

I prefer traditional mutual funds over ETFs for the same reasons. Schwab has low-cost funds so using them will be fine as long as you are actively contributing (I’m in the “withdrawal” stage of life) and don’t have to worry about the “90 day” limitation.
by David Jay
Mon May 10, 2021 10:35 am
Forum: Personal Finance (Not Investing)
Topic: Annual return
Replies: 4
Views: 634

Re: Annual return

I am a “recovering stock picker”. Sometimes I almost need a support group to say “Nope”.
by David Jay
Mon May 10, 2021 10:29 am
Forum: Personal Investments
Topic: Retirement withdrawal mechanics
Replies: 27
Views: 4861

Re: Retirement withdrawal mechanics

“Optimal” to me is a math term (i.e. the same meaning as your “financially optimal”), so we are in agreement except for language. I know. From my point of view, we are almost always in agreement. :D It’s pretty easy if one focuses on the “majors”. I have advised my spouse in my “after I am gone” le...
by David Jay
Mon May 10, 2021 10:15 am
Forum: Personal Investments
Topic: Rollover IRA or roll into new 401k
Replies: 1
Views: 122

Re: Rollover IRA or roll into new 401k

Both of you have fine 401K fund choices. I would roll over to 401K.
by David Jay
Mon May 10, 2021 10:06 am
Forum: Personal Investments
Topic: 401k is already 100% full of bonds, but my AA calls for more bonds. Put in taxable or Roth IRA?
Replies: 12
Views: 912

Re: 401k is already 100% full of bonds, but my AA calls for more bonds. Put in taxable or Roth IRA?

With only 170K in Roth (compared to many times that amount in taxable), I would protect the Roth and put the additional bonds in taxable. Thanks. Do you agree with the other poster that VBTLX in taxable is better than a tax-exempt bond fund? 22% tax bracket and 0% state. Most likely, yes. A 30+ per...
by David Jay
Mon May 10, 2021 10:02 am
Forum: Personal Investments
Topic: Retirement withdrawal mechanics
Replies: 27
Views: 4861

Re: Retirement withdrawal mechanics

All accounts except cash are invested to my AA of 60:40 Stocks:Bonds. Holding the same 60:40 in every account is less than optimal. I'll take the other side of the argument. :happy I agree that holding 60:40 in every account is less than optimal financially . In a long term situation, all-stocks-in...
by David Jay
Mon May 10, 2021 9:47 am
Forum: Personal Investments
Topic: 401k is already 100% full of bonds, but my AA calls for more bonds. Put in taxable or Roth IRA?
Replies: 12
Views: 912

Re: 401k is already 100% full of bonds, but my AA calls for more bonds. Put in taxable or Roth IRA?

With only 170K in Roth (compared to many times that amount in taxable), I would protect the Roth and put the additional bonds in taxable.
by David Jay
Mon May 10, 2021 9:30 am
Forum: Investing - Theory, News & General
Topic: The Power of Working Longer
Replies: 502
Views: 40418

Re: Most Effective Way to Improve Your Retirement Security

The graphic on page 48 of that document shows how much would come from SS and how much would come from portfolio drawdown since the original graphic above did not have that delineation: https://live.staticflickr.com/65535/51161430096_2c081976a1.jpg From this graph, it is clear that the paper makes ...
by David Jay
Mon May 10, 2021 8:53 am
Forum: Personal Investments
Topic: Retirement withdrawal mechanics
Replies: 27
Views: 4861

Re: Retirement withdrawal mechanics

All accounts except cash are invested to my AA of 60:40 Stocks:Bonds. Holding the same 60:40 in every account is less than optimal. Different accounts have different tax treatment, so the usual recommendation is to hold your desired asset allocation (60:40) on your total portfolio but use different...
by David Jay
Sun May 09, 2021 8:34 pm
Forum: Personal Investments
Topic: Preparing to RE - looking for advice on best preparatory steps
Replies: 14
Views: 1223

Re: Preparing to RE - looking for advice on best preparatory steps

Let me take a shot at withdrawal rates: The often quoted sustainable withdrawal rates (SWRs) are developed in consideration of poor market conditions, especially in the first few years of retirement. Retirees are most concerned about running out of money so the quoted SWRs are usually for a 90% or 9...
by David Jay
Sun May 09, 2021 7:29 pm
Forum: Personal Investments
Topic: Preparing to RE - looking for advice on best preparatory steps
Replies: 14
Views: 1223

Re: Preparing to RE - looking for advice on best preparatory steps

Welcome to the forum! You have come to the right place, we are a bunch of DYI retirement planners. Let me tackle #5, the question of income products. The general problem with annuities is that insurance companies need to have earnings and those earnings come from your annuity product. There is one s...
by David Jay
Sun May 09, 2021 7:37 am
Forum: Personal Investments
Topic: Help for passive investment
Replies: 6
Views: 897

Re: Help for passive investment

LoGrIchE wrote: Sun May 09, 2021 1:25 amOr increase from 50% to 80% the "Vanguard Global Stock Index Inv EUR Acc"?
Yes, do this.

I do not understand the meaning of “RF”, what do you mean?
by David Jay
Sat May 08, 2021 9:55 pm
Forum: Personal Finance (Not Investing)
Topic: Inverse correlation between housing cost and relative value of buying over renting?
Replies: 3
Views: 559

Re: Inverse correlation between housing cost and relative value of buying over renting?

And another question....I was checking a location on the W coast of FL.... 2 br apartments sell for about $350K-400K (HOA fees+taxes+insurance are about $900/mo) and ones somewhat comparable but not quite as nice rent for about $3500/month. 1 br apartments sell for about $200-250K (HOA fees + taxes...
by David Jay
Sat May 08, 2021 7:58 pm
Forum: Investing - Theory, News & General
Topic: How big is the risk of sustained huge stock market decline?
Replies: 102
Views: 9571

Re: How big is the risk of sustained huge stock market decline?

trajan08 wrote: Wed May 05, 2021 9:19 pm
sycamore wrote: Wed May 05, 2021 3:54 pm
csan wrote: Wed May 05, 2021 3:51 pm I ran it through my calculator to compute the risk and it returned "?"
Mine said 42.
I got 42 also
Wow, you guys are making me feel old. I read "Hitchhiker's Guide" in 1981, 40 years ago. And I still remember the answer to the Ultimate Question...
by David Jay
Sat May 08, 2021 7:34 pm
Forum: Investing - Theory, News & General
Topic: When will asset prices come down?
Replies: 84
Views: 5545

Re: When will asset prices come down?

newyorker wrote: Sat May 08, 2021 5:46 pmGod damnit why is it so hard to accept nobody knows nothing 😭
Because we all crave the illusion of being in control.
by David Jay
Sat May 08, 2021 6:16 pm
Forum: Personal Finance (Not Investing)
Topic: Please Weigh In, Can't Ask Anyone Else - Burial Planning
Replies: 52
Views: 4182

Re: Please Weigh In, Can't Ask Anyone Else - Burial Planning

Don't try to reserve burial space for your children.

Neither my wife or I live close to where any of our parents are buried. I don't even live in the same country. Your kids can end up building their lives anywhere on the planet.
by David Jay
Sat May 08, 2021 6:02 pm
Forum: Personal Investments
Topic: Portfolio review please
Replies: 4
Views: 658

Re: Portfolio review please

1. For international, anything between 0% and 40% is reasonable. There are a slew of opinions, but not much "meat" on which to base a decision. Lots of folks do 1/4 or 1/3 for convenience.

2. Vanguard Total International is fine in both 401K and IRA/SEP.
by David Jay
Sat May 08, 2021 3:03 pm
Forum: Personal Finance (Not Investing)
Topic: Quit Claim Deed
Replies: 7
Views: 965

Re: Quit Claim Deed

Much of marital property law is state specific. In which state do you reside?
by David Jay
Sat May 08, 2021 11:50 am
Forum: Personal Investments
Topic: Form 8606- Amended return or Form only?
Replies: 8
Views: 734

Re: Form 8606- Amended return or Form only?

Form 8606 can be filed separately, no need to amend.

Form 8686 can even be filed separately for a number of past years, if necessary.
by David Jay
Fri May 07, 2021 10:32 pm
Forum: Investing - Theory, News & General
Topic: When will asset prices come down?
Replies: 84
Views: 5545

Re: When will asset prices come down?

Snuffycuts99 wrote: Fri May 07, 2021 7:26 pmThe only question remains...shall it be a Rolex Pearlmaster or a '53 Corvette?
“or” ???

Embrace the healing power of “and” :happy
by David Jay
Fri May 07, 2021 6:03 pm
Forum: Personal Finance (Not Investing)
Topic: Liquidate investments for down payment while being tax efficient
Replies: 2
Views: 292

Re: Liquidate investments for down payment while being tax efficient

A few thoughts: 1. The most tax efficient sales would be sales of stock holdings with no gains , or at least minimal gains. Do you have any recent RSUs with very little gain? 2. The next most efficient sales would be sales of stock holdings with long-term gains, as they are taxed at a lower rate tha...
by David Jay
Fri May 07, 2021 3:41 pm
Forum: Personal Investments
Topic: Seeking Alt Dealflow - RIA in MidAtl or Southeast
Replies: 4
Views: 432

Re: Seeking Alt Dealflow - RIA in MidAtl or Southeast

I just wanted to reply so you would not feel that you were being ignored. I see that well over 100 people have viewed your post, so there are people here who are willing to help. I think there are two limiting factors for getting a lot of feedback to your inquiry here on Bogleheads. One or the other...
by David Jay
Fri May 07, 2021 11:41 am
Forum: Investing - Theory, News & General
Topic: Confused about dividend investing, market downturns and early retirement
Replies: 89
Views: 5594

Re: Confused about dividend investing, market downturns and early retirement

Non-dividend paying stock isn't really all that different from Bitcoin or Pokemon Cards. It relies on the Greater Fool theory. No matter how many times in how many different threads you say exactly the same thing, it is still a false assertion. A company with real earnings and/or physical assets ha...
by David Jay
Fri May 07, 2021 10:30 am
Forum: Investing - Theory, News & General
Topic: Please review small value tilt portfolio
Replies: 34
Views: 2401

Re: Please review small value tilt portfolio

How much value tilt is optimal??? And that, detective, is the right question. (movie reference) Several analyses have suggested that the "small" factor has disappeared, beginning shortly after it was first described. Value has underperformed over the last dozen years. Will value come back...
by David Jay
Fri May 07, 2021 10:12 am
Forum: Investing - Theory, News & General
Topic: Why the disdain for managed funds like ARKK that destroy total market funds?
Replies: 900
Views: 76316

Re: Why the disdain for managed funds like ARKK that destroy total market funds?

SlowMovingInvestor wrote: Fri May 07, 2021 8:29 am
David Jay wrote: Fri May 07, 2021 8:14 am
SlowMovingInvestor wrote: Fri May 07, 2021 7:22 am Portfolio: 50% DOGE, 10% SPACs, 10% Frozen OJ futures, 10% MOON ETF, 10% NFTs , 5% FOMO ETF, 5% New Jersey Delis with $100M market cap :)
What, no GME? That thread is over 4500 posts long...
Too conservative :happy
Yup, that makes perfect sense...
by David Jay
Fri May 07, 2021 10:09 am
Forum: Personal Investments
Topic: How much do you trust FIRECalc?
Replies: 17
Views: 2102

Re: How much do you trust FIRECalc?

If it projects that you have, say, $3.2M at age 55, it would be reasonable to withdraw 3.5% or about $110,000 a year. Do keep in mind that the spending power of $110,000 will be considerably less in 2032 than in 2021, but still likely well more than your $56K minimum living expense. ...and you still...
by David Jay
Fri May 07, 2021 8:14 am
Forum: Investing - Theory, News & General
Topic: Why the disdain for managed funds like ARKK that destroy total market funds?
Replies: 900
Views: 76316

Re: Why the disdain for managed funds like ARKK that destroy total market funds?

SlowMovingInvestor wrote: Fri May 07, 2021 7:22 am Portfolio: 50% DOGE, 10% SPACs, 10% Frozen OJ futures, 10% MOON ETF, 10% NFTs , 5% FOMO ETF, 5% New Jersey Delis with $100M market cap :)
What, no GME? That thread is over 4500 posts long...
by David Jay
Thu May 06, 2021 1:31 pm
Forum: Investing - Theory, News & General
Topic: [Question About Fund Tickers]
Replies: 7
Views: 431

Re: Dum Question

The fund or ETF provider can choose the name. It must be unique, they can’t choose a name of any other stock or fund (i.e. you can’t name your ETF XOM - Exxon Mobil Corp.)
by David Jay
Thu May 06, 2021 1:25 pm
Forum: Personal Finance (Not Investing)
Topic: Question on Backdoor Roth IRA
Replies: 8
Views: 581

Re: Question on Backdoor Roth IRA

.I would make the 2020 non-deductible TIRA contribution into a separate, new TIRA by 5/17. Then I would get to work transferring the Rollover IRA to the 401k (or you can go ahead and do that today). Once the Rollover IRA is in the 401k, then I would convert the new TIRA to Roth IRA. There is a slig...
by David Jay
Thu May 06, 2021 1:13 pm
Forum: Non-US Investing
Topic: Should I add small-cap ETF?
Replies: 5
Views: 555

Re: Should I add small-cap ETF?

In my opinion, your Vanguard FTSE All World UCITS ETF (VWRA) is the only stock fund you need. It is fully diversified across world equity markets. Any "tilt" (shifting away from market capitalization) introduces behavioral challenges. If small cap underperforms for 10 or 15 years, will you...
by David Jay
Thu May 06, 2021 1:06 pm
Forum: Personal Investments
Topic: Rollover and Roth Conversion
Replies: 8
Views: 662

Re: Rollover and Roth Conversion

The other side is that this is a lot of work to save taxes on $1200. In, say, the 24% tax bracket, that is only $288.

Doing a 401K reverse rollover only makes sense (from an effort standpoint) if you intend to do "backdoor Roth" contributions in future years.
by David Jay
Thu May 06, 2021 1:02 pm
Forum: Personal Investments
Topic: Trying To Understand the Utility of Roth Conversion
Replies: 42
Views: 4602

Re: Trying To Understand the Utility of Roth Conversion

The real issue is the tax rate for the surviving spouse in later years as the RMD percentage increases. Imagine at age 90 having an RMD of, say, $120,000 as a single filer. That puts one in the 28% tax bracket (after 2026 tax rate reversion). I agree with the necessity of observing ACA and IRMAA lim...
by David Jay
Thu May 06, 2021 12:32 pm
Forum: Personal Investments
Topic: Rollover and Roth Conversion
Replies: 8
Views: 662

Re: Rollover and Roth Conversion

In my opinion, you should use process #1 because you are assured of completing the 401K before you perform the conversion (and assure no tax consequence). With #2 there are possible unknowns that may create a tax liability. For instance, with #2, if you were fired the day you perform the conversion ...
by David Jay
Thu May 06, 2021 9:07 am
Forum: Investing - Theory, News & General
Topic: Tradestation denies account
Replies: 3
Views: 399

Re: Tradestation denies account

Welcome to the forum! You may find someone here who has an account with Tradestation, but there will not be many Bogleheads with Tradestation accounts. We are primarily a buy-and-hold community using broad-based index mutual funds/ETFs as core holdings and focused on lifetime portfolios. Here is a l...
by David Jay
Wed May 05, 2021 10:15 pm
Forum: Personal Investments
Topic: Fidelity says I am in good shape with a 5% withdrawal. Living to 85 starting at 55. What do you think?
Replies: 60
Views: 8748

Re: Fidelity says I am in good shape with a 5% withdrawal. Living to 85 starting at 55. What do you think?

59Gibson wrote: Wed May 05, 2021 9:05 pmIf you're close to retirement you can simply put in your current expenses/yr., not income ...
Actually, you would need to put in your expenses times 1.25, the calculator assumes you can live on 80% of your current salary.

I am afraid that is what the OP may have done to get a 95% success rate.
by David Jay
Wed May 05, 2021 6:40 pm
Forum: Personal Investments
Topic: Fidelity says I am in good shape with a 5% withdrawal. Living to 85 starting at 55. What do you think?
Replies: 60
Views: 8748

Re: Fidelity says I am in good shape with a 5% withdrawal. Living to 85 starting at 55. What do you think?

Sorry, but that is a terribly simplistic calculator. It really only works for those who have not yet retired. For instance, it assumes that I will need 80% of my current income in retirement (I need 100% of my current retirement income in retirement), SS payment is based on my current income assumin...
by David Jay
Wed May 05, 2021 6:29 pm
Forum: Personal Finance (Not Investing)
Topic: Wait until 70 to claim SS. Is this always best?
Replies: 68
Views: 5131

Re: Wait until 70 to claim SS. Is this always best?

We are definitely following up to confirm what eligibility she may have from her working years. It's very close to the 40 credits requirement. Sounds like that could be a significant consideration if she is eligible. If she has 39 quarters, she may want to “help out” at some friend’s establishment ...
by David Jay
Wed May 05, 2021 3:40 pm
Forum: Personal Finance (Not Investing)
Topic: Wait until 70 to claim SS. Is this always best?
Replies: 68
Views: 5131

Re: Wait until 70 to claim SS. Is this always best?

We are definitely following up to confirm what eligibility she may have from her working years. It's very close to the 40 credits requirement. Sounds like that could be a significant consideration if she is eligible. If she has 39 quarters, she may want to “help out” at some friend’s establishment ...
by David Jay
Wed May 05, 2021 11:27 am
Forum: Personal Investments
Topic: Help for passive investment
Replies: 6
Views: 897

Re: Help for passive investment

Welcome to the forum! The Global Stock Index already includes approximately 15-20% small cap, so the above equity allocation represents an approximate 37-40% allocation to Small Cap. This is a severe tilt away from market capitalization. I suggest you do a site search for “small cap tilt”, a number ...
by David Jay
Wed May 05, 2021 11:07 am
Forum: Personal Finance (Not Investing)
Topic: Retirement - Spenddown planning
Replies: 37
Views: 2677

Re: Retirement - Spenddown planning

For instance, the 4% SWR virtually assures that you will have more money at death than at retirement. I've always found the 4% SWR "rule" to be meaningless and dangerous in the absence of specifics about asset allocations. If somebody places 100% of their assets in fixed income at today's...
by David Jay
Wed May 05, 2021 11:03 am
Forum: Personal Finance (Not Investing)
Topic: Wait until 70 to claim SS. Is this always best?
Replies: 68
Views: 5131

Re: Wait until 70 to claim SS. Is this always best?

bloom2708 wrote: Wed May 05, 2021 10:58 am Would not her .5x be increased by 50% of your .24x increase.
No, OP is correct. Spousal results in a total benefit 50% of PIA, not 50% of age 70 benefit.
by David Jay
Wed May 05, 2021 11:01 am
Forum: Personal Finance (Not Investing)
Topic: Wait until 70 to claim SS. Is this always best?
Replies: 68
Views: 5131

Re: Wait until 70 to claim SS. Is this always best?

First, verify whether or not your spouse has 40 quarters of work experience. Because of the 90% bracket and wage inflation, if she qualifies for SS benefits they will be a useful sum. My wife had 41 quarters, many years were tiny because they were part time when she was in college, but her age 62 PI...
by David Jay
Wed May 05, 2021 9:42 am
Forum: Personal Finance (Not Investing)
Topic: Retirement - Spenddown planning
Replies: 37
Views: 2677

Re: Retirement - Spenddown planning

I don't mean to discourage you, but the 300 pound gorilla in the room is that the future is unknown. For instance, the 4% SWR virtually assures that you will have more money at death than at retirement. Because the SWR uses the worst sequence of returns (1929 style) immediately after start of retire...
by David Jay
Tue May 04, 2021 5:34 pm
Forum: Personal Investments
Topic: Wash Sale Rule
Replies: 5
Views: 418

Re: Wash Sale Rule

Eastcoaster212 wrote: Tue May 04, 2021 5:18 pmI mean am i losing money or what? I just simply don't get it. :-(
Remember, wash sales are about taxes. Whether or not you can claim a specific loss on your 2021 taxes. It has nothing to do with whether or not you have made money on your trades.