Search found 10453 matches

by David Jay
Mon Apr 19, 2021 7:57 pm
Forum: Investing - Theory, News & General
Topic: If active investing is foolish, why do we utterly, blindly trust active investors (fools) to set prices for us?
Replies: 21
Views: 1681

Re: If active investing is foolish, why do we utterly, blindly trust active investors (fools) to set prices for us?

They are not all fools simply because they're doing something that’s not suited for you. This is where BH stops being a best practices guideline for the average investor and starts being an ideology. Questions: 1. Did you notice that the OP is a month-old member of the forum? 2. Did you read the re...
by David Jay
Mon Apr 19, 2021 6:20 pm
Forum: Personal Finance (Not Investing)
Topic: Reportable vs. Non-reportable Rollover
Replies: 2
Views: 179

Re: Reportable vs. Non-reportable Rollover

Near as I can tell, a reportable rollover is a rollover that is not trustee-to-trustee. It is "reported" because you can only do one such rollover in a 12 month period. Fidelity is reporting this, so you will not be allowed to do another such rollover within 12 calendar months. There are n...
by David Jay
Mon Apr 19, 2021 5:14 pm
Forum: Personal Investments
Topic: Help with Portfolio Asset Allocation
Replies: 1
Views: 172

Re: Help with Portfolio Asset Allocation

Welcome to the forum! I see you have listed a few accounts and their respective AA. Most here on BH would select an AA for their overall portfolio and then use tax-efficient fund placement to determine which assets to put in which accounts. Some accounts may still have a mix of assets but it is comm...
by David Jay
Mon Apr 19, 2021 2:34 pm
Forum: Personal Investments
Topic: Take this annuity?
Replies: 4
Views: 514

Re: Take this annuity?

Your plan to annuitize falls into the "reasonable" category. Two thoughts: 1. Remember that the 7.04% is not inflation adjusted. So the spending power will shrink over the decades. Traditional SWR formulas assume inflation adjustment, so one can't directly compare 7% to 2% 2. You mentioned...
by David Jay
Mon Apr 19, 2021 12:37 pm
Forum: Investing - Theory, News & General
Topic: Fisher Investments - Parents Considering
Replies: 19
Views: 1808

Re: Fisher Investments - Parents Considering

At least they won't put your folks in annuities :wink: (Ken Fisher hates annuities).
by David Jay
Mon Apr 19, 2021 12:33 pm
Forum: Personal Investments
Topic: Convert to Roth or stay in tax deferred?
Replies: 53
Views: 8368

Re: Convert to Roth or stay in tax deferred?

At this point, your willingness to take short term pain for long term gain seems like the biggest decision. IRMAA has a 2-year look-back, and since you are already paying the higher premium I would certainly convert all the way to the top of the 24% tax bracket in 2021. This is over a $200,000 conve...
by David Jay
Mon Apr 19, 2021 10:10 am
Forum: Personal Consumer Issues
Topic: OTC hearing aids: experiences, wisdom?
Replies: 5
Views: 429

Re: OTC hearing aids: experiences, wisdom?

There is also a middle-ground. Low cost hearing aids. For instance Lively and Costco Signature. Available for less than $2000 a pair. Costco Signature 9.0 is $1495.
by David Jay
Mon Apr 19, 2021 9:38 am
Forum: Personal Finance (Not Investing)
Topic: how to make an unsolicited offer to buy
Replies: 8
Views: 562

Re: how to make an unsolicited offer to buy

mushripu wrote: Mon Apr 19, 2021 9:33 am I would not mention owner having arrear taxes on lot. It can be a bad start to the conversation.
+1
by David Jay
Mon Apr 19, 2021 9:36 am
Forum: Personal Finance (Not Investing)
Topic: how to make an unsolicited offer to buy
Replies: 8
Views: 562

Re: how to make an unsolicited offer to buy

I like a combination of your #1 and #2: * I’d like to buy your lot at 1234 County Road. I live in the home at 1236 County Road and would like to preserve the "green space" around my home. I do not intend to develop the lot. This does a few things. It shows you are serious, it shows that yo...
by David Jay
Mon Apr 19, 2021 9:25 am
Forum: Investing - Theory, News & General
Topic: Future of advisory services?
Replies: 5
Views: 453

Re: Future of advisory services?

Welcome to the forum! ...questions that are more complicated than what I know now. This is true for every one of us. There are things we don't know. Andragogy (the study of how adults learn) tells us that adults learn in response to need . Three years ago I knew nothing about Medicare, skipped over ...
by David Jay
Mon Apr 19, 2021 8:48 am
Forum: Personal Finance (Not Investing)
Topic: Medicare Advantage - What's the Deal?
Replies: 125
Views: 7683

Re: Medicare Advantage - What's the Deal?

Regardless of the additional items covered in Advantage plans, the patient is always responsible for 20% of the treatment costs . ??? I just got done wading through a Medicare Advantage EOC (that's the 297 page official coverage document). You were mis-informed if you were told that this is true of...
by David Jay
Mon Apr 19, 2021 8:05 am
Forum: Personal Investments
Topic: 65 y.o. seeks advise on retirement at 70
Replies: 28
Views: 2264

Re: 65 y.o. seeks advise on retirement at 70

Sorry but I forgot to tell David about my mortgage's principle and interest per month: Principle = $1,336.53 Interest = 177.74 Escrow = 756.70 which covers RE tax and insurance I'm adding $1,000 a month so that in 4 years (a little more) it'll be paid off This puts you on track for retirement at ag...
by David Jay
Mon Apr 19, 2021 7:43 am
Forum: Personal Finance (Not Investing)
Topic: Medicare Advantage - What's the Deal?
Replies: 125
Views: 7683

Re: Medicare Advantage - What's the Deal?

We are both up for Medicare this winter (birthdays are one month apart). I have seriously looked at the “A + B only” based on this Doctor’s arguments: https://truecostofhealthcare.org/medicare-supplemental-insurance/ In the end, I chickened out and now we are focusing these choices: 1. High Deducib...
by David Jay
Sun Apr 18, 2021 10:40 pm
Forum: Personal Investments
Topic: 65 y.o. seeks advise on retirement at 70
Replies: 28
Views: 2264

Re: 65 y.o. seeks advise on retirement at 70

I think you are close to meeting your goal. I show about $60,000 in available income at age 70.

What is the principle + interest on your mortgage? If it is more than $900 a month then you can maintain your current spending levels after paying off the mortgage.
by David Jay
Sun Apr 18, 2021 6:40 pm
Forum: Personal Investments
Topic: Convert to Roth or stay in tax deferred?
Replies: 53
Views: 8368

Re: Convert to Roth or stay in tax deferred?

David, I haven't been able to follow all of the numbers here. Is that the rationale here that the OP's withdrawals after age 2026 are large enough to exceed the standard deduction and place the OP in the 22% bracket at that time? Also, could you speak to holding some tax-deferred funds to be used f...
by David Jay
Sun Apr 18, 2021 6:31 pm
Forum: Personal Investments
Topic: Separately Managed Account (SMA) with less than 1% Fees?
Replies: 1
Views: 300

Re: Separately Managed Account (SMA) with less than 1% Fees?

I did some quick googling on SMAs and I just don’t get it.

Seems like a lot of cost for so-called “professional management” of TLH. But of course, most of us here on BH are DYI type investors.
by David Jay
Sun Apr 18, 2021 5:59 pm
Forum: Personal Investments
Topic: Convert to Roth or stay in tax deferred?
Replies: 53
Views: 8368

Re: Convert to Roth or stay in tax deferred?

One other thing related to “running the numbers” is that I do not have outside money to pay the taxes. Lange rec’d to use a HELOC to pay those taxes on the conversion money rather than having to dip deeper into the traditional IRA to pay the taxes. He said that otherwise, I’d need to take out 133K ...
by David Jay
Sun Apr 18, 2021 1:12 pm
Forum: Personal Consumer Issues
Topic: Preserving ink jet ink cartridges
Replies: 6
Views: 524

Re: Preserving ink jet ink cartridges

I hope you find a solution, but I finally gave up on trying to keep inkjet cartridges functional while snow-birding down south. I just bought a multifunction color laser printer for about $400. The laser uses dry powder for toner, so it "never" goes bad. I read a comment here on BH of a gu...
by David Jay
Sun Apr 18, 2021 1:05 pm
Forum: Personal Investments
Topic: Convert to Roth or stay in tax deferred?
Replies: 53
Views: 8368

Re: Convert to Roth or stay in tax deferred?

I have looked at your numbers, and here is the conclusion that I come to: You should fill a portion of 24% tax bracket with Roth conversions for the next 5 years, with the goal to be able to stay in the 25% (that's your current 22% tax bracket, the rate changes in 2026) tax bracket after the 5 years...
by David Jay
Sun Apr 18, 2021 12:09 pm
Forum: Personal Investments
Topic: Convert to Roth or stay in tax deferred?
Replies: 53
Views: 8368

Re: Convert to Roth or stay in tax deferred?

The OP got into a discussion on another thread and we are splitting out just the Roth conversion issue in this thread, as the title fits well with the discussion. The newer thread is here: https://www.bogleheads.org/forum/viewtopic.php?f=2&t=346498 First, let's do a quick review a few principles...
by David Jay
Sun Apr 18, 2021 11:36 am
Forum: Personal Finance (Not Investing)
Topic: “Running the Numbers”
Replies: 26
Views: 2280

Re: “Running the Numbers”

Looking at your earlier “Roth” thread, you have a pretty simple situation. All living expenses covered by pension and SS, all retirement funds in tax-deferred (1.7M). With your desire to leave the maximum legacy, all you really need to do is figure out a “good enough” Roth conversion strategy. I sa...
by David Jay
Sun Apr 18, 2021 8:34 am
Forum: Personal Finance (Not Investing)
Topic: “Running the Numbers”
Replies: 26
Views: 2280

Re: “Running the Numbers”

Looking at your earlier “Roth” thread, you have a pretty simple situation. All living expenses covered by pension and SS, all retirement funds in tax-deferred (1.7M). With your desire to leave the maximum legacy, all you really need to do is figure out a “good enough” Roth conversion strategy. I say...
by David Jay
Sun Apr 18, 2021 8:19 am
Forum: Personal Finance (Not Investing)
Topic: “Running the Numbers”
Replies: 26
Views: 2280

Re: “Running the Numbers”

He will ask for the same information that we ask for, so why not collect it now and post it here first. If you still want to spend ten grand with this guy after posting here you will have all the numbers in one place. Link to “Asking Portfolio Questions” format: https://bogleheads.org/forum/viewtopi...
by David Jay
Sun Apr 18, 2021 7:32 am
Forum: Investing - Theory, News & General
Topic: Do simple index fund-only portfolios (e.g., 3-fund, 5-fund, etc.) work for the ultra wealthy (say, $20+ million)?
Replies: 81
Views: 7199

Re: Do simple index fund-only portfolios (e.g., 3-fund, 5-fund, etc.) work for the ultra wealthy (say, $20+ million)?

We have people on the board with more than 20 million. I can’t speak to their portfolio specifics, but they use broad-based index funds as core holdings.
by David Jay
Sat Apr 17, 2021 8:46 pm
Forum: Investing - Theory, News & General
Topic: Is passive investing leading to bigger market inefficiencies?
Replies: 39
Views: 2676

Re: Is passive investing leading to bigger market inefficiencies?

By this 50% analysis - Active Funds should exploit/outperform the passive indexes. Funds don't have as much room to maneuver as individuals. So passive funds can create market inefficiencies but active funds can’t take advantage of said inefficiencies? Those inefficiencies are sly little devils...
by David Jay
Sat Apr 17, 2021 8:06 pm
Forum: Personal Investments
Topic: At Retirement and Way Overweight Annuities
Replies: 11
Views: 1351

Re: At Retirement and Way Overweight Annuities

First - I'm extremely grateful. You all are life savers. Thank you for taking the time. Also " yes ", withdraw from the non-qualified annuity (many allow 10% per year without penalty) for living expenses. Since they're over 59.5 (early withdrawal) and don't have significant surrender fees...
by David Jay
Sat Apr 17, 2021 6:59 pm
Forum: Personal Finance (Not Investing)
Topic: Pension vs. Salary
Replies: 5
Views: 1193

Re: Pension vs. Salary

If the pension has a COLA then I think 4% is a reasonable rule of thumb.
by David Jay
Sat Apr 17, 2021 6:56 pm
Forum: Personal Investments
Topic: At Retirement and Way Overweight Annuities
Replies: 11
Views: 1351

Re: At Retirement and Way Overweight Annuities

Qualified Variable Annuities inside an IRA served exactly one purpose - to pay the annuity salesperson's BMW payment. Yes , dump them. Also " yes ", withdraw from the non-qualified annuity (many allow 10% per year without penalty) for living expenses. Finally, " yes ", the higher...
by David Jay
Sat Apr 17, 2021 2:58 pm
Forum: Personal Investments
Topic: Synthetic Cash?
Replies: 10
Views: 1060

Re: Synthetic Cash?

Welcome to the forum! At Bogleheads we teach that the primary "control knob" for growth versus stability is your "asset allocation" (AA), the ratio of stocks to fixed income (bonds, CDs, cash, etc.). Replacing 1/3 of your cash with stocks will definitely boost your potential for ...
by David Jay
Sat Apr 17, 2021 2:47 pm
Forum: Personal Investments
Topic: Portfolio Review - Help!
Replies: 5
Views: 503

Re: Portfolio Review - Help!

Welcome to the forum! You are in great shape. Any portfolio "clean-up" is some trimming around the edges, the big number is that you can withdraw a very conservative 3% from your portfolio and well exceed your targeted living expenses. With future Social Security down the road, you can pro...
by David Jay
Sat Apr 17, 2021 2:40 pm
Forum: Personal Finance (Not Investing)
Topic: Medicare Advantage - What's the Deal?
Replies: 125
Views: 7683

Re: Medicare Advantage - What's the Deal?

One of the books I read said that if everything went wrong (months-long hospital stays, most expensive drugs possible, etc. for a couple of decades) that one could spend $900,000 over a lifetime on Medicare. I know it's just a theoretical number but it is still concerning. I would be more concerned...
by David Jay
Sat Apr 17, 2021 2:34 pm
Forum: Personal Investments
Topic: Questions and advice sought!
Replies: 5
Views: 593

Re: Questions and advice sought!

Welcome to the forum! 1. are we in reasonable shape to retire in 2 years assuming we keep an allocation of 60/40 for the next few years? Yes. With Social Security to back you up down the road I see no problem with a 4% withdrawal rate which, based on 3.8M would be $152,000 a year. 2. As we have no p...
by David Jay
Sat Apr 17, 2021 2:06 pm
Forum: Personal Finance (Not Investing)
Topic: Medicare Advantage - What's the Deal?
Replies: 125
Views: 7683

Re: Medicare Advantage - What's the Deal?

1. With high-deductible G I know the maximum per year and have nationwide acceptance. 2. With MA PPO I have zero monthly cost, so healthy out-of-pocket is the same as A + B but there will be no Part D penalty if I want to go to an A+B+D in the future due to a need for costly drugs. I am leaning tow...
by David Jay
Sat Apr 17, 2021 1:30 pm
Forum: Personal Finance (Not Investing)
Topic: Medicare Advantage - What's the Deal?
Replies: 125
Views: 7683

Re: Medicare Advantage - What's the Deal?

I have seriously looked at the “A + B only” based on this Doctor’s arguments: https://truecostofhealthcare.org/medicare-supplemental-insurance/ In the end, I chickened out and now we are focusing these choices: 1. High Deducible “G” + Placeholder “D” 2. Priority Health MA PPO, the network is affili...
by David Jay
Sat Apr 17, 2021 12:47 pm
Forum: Personal Investments
Topic: withdrawal strategy after market decline
Replies: 29
Views: 2055

Re: withdrawal strategy after market decline

I would "rebalance" with my regular withdrawals. Which would mean that I would be withdrawing from bonds.
by David Jay
Sat Apr 17, 2021 12:43 pm
Forum: Investing - Theory, News & General
Topic: “Take risk on equity side”
Replies: 51
Views: 3713

Re: “Take risk on equity side”

To me, it means that one shouldn't try to "juice" their fixed income yield with things like junk bonds or index annuities.

Take what the market will give you, even in these low-yield times.
by David Jay
Sat Apr 17, 2021 10:06 am
Forum: Investing - Theory, News & General
Topic: Is passive investing leading to bigger market inefficiencies?
Replies: 39
Views: 2676

Re: Is passive investing leading to bigger market inefficiencies?

In the end, my answer to all of these "passive creates inefficiencies" arguments is as follows:

"I will know exploitable inefficiencies exist when more than 50% of active funds beat their index according to the SPIVA scorecard."
by David Jay
Sat Apr 17, 2021 9:58 am
Forum: Investing - Theory, News & General
Topic: Is passive investing leading to bigger market inefficiencies?
Replies: 39
Views: 2676

Re: Is passive investing leading to bigger market inefficiencies?

The smaller their weight, the slower the adaptation will be. Do you have a basis for that statement? I would argue that the smaller their weight, the more nimble they can be. And thus, the faster the adaption will be. Remember, the price is set, not by the volume of trading, but by the price of las...
by David Jay
Sat Apr 17, 2021 9:51 am
Forum: Personal Finance (Not Investing)
Topic: Medicare Advantage - What's the Deal?
Replies: 125
Views: 7683

Re: Medicare Advantage - What's the Deal?

We are both up for Medicare this winter (birthdays are one month apart). I have seriously looked at the “A + B only” based on this Doctor’s arguments: https://truecostofhealthcare.org/medicare-supplemental-insurance/ In the end, I chickened out and now we are focusing these choices: 1. High Deducibl...
by David Jay
Sat Apr 17, 2021 9:23 am
Forum: Personal Finance (Not Investing)
Topic: Does it make sense to keep 30 year term life insurance?
Replies: 34
Views: 2701

Re: Does it make sense to keep 30 year term life insurance?

NoblesvilleIN wrote: Mon Feb 15, 2021 9:56 pmWe dropped our level term policies (one for me, one for spouse) when we were comfortable that the surviving spouse would be ok.
Same here.
by David Jay
Sat Apr 17, 2021 8:50 am
Forum: Personal Finance (Not Investing)
Topic: Financial Checkup
Replies: 1
Views: 252

Re: Financial Checkup

Welcome to the forum! Some questions: 1) How are we doing? You are doing great. I had an income similar to yours (wife was SAHM) and made my very first retirement contribution at age 30. I retired @ age 62 without any pension. So you guys are way ahead of us. Keep it up. 2) Does it seem reasonable t...
by David Jay
Sat Apr 17, 2021 7:45 am
Forum: Investing - Theory, News & General
Topic: Value etf’s that actually contain value?
Replies: 42
Views: 2590

Re: Value etf’s that actually contain value?

Dug8498 wrote: Sat Apr 17, 2021 5:39 amNothing wrong with any of those companies, but some of them definitely far too expensive right now.
Sounds like the good companies are too expensive and the cheap companies are on the verge of bankruptcy.

Maybe we can call that the “Value Paradox”.
by David Jay
Sat Apr 17, 2021 7:25 am
Forum: Personal Investments
Topic: Roth conversion should I?
Replies: 5
Views: 862

Re: Roth conversion should I?

I keep reading to stay at the 22% or under. TurboTax said my effective fed rate is 21%. Your effective rate doesn’t matter for these types of decisions, it is your marginal rate, that is, the rate you pay on the next dollar of income. One must decide, based on what additional tax one will pay, whet...
by David Jay
Fri Apr 16, 2021 6:03 pm
Forum: Personal Finance (Not Investing)
Topic: Before Medicare begins: Use your HSA tax free funding distribution
Replies: 13
Views: 1246

Re: Before Medicare begins: Use your HSA tax free funding distribution

See my note in the OP. The "distribution" from the tIRA is also an immediate contribution to the HSA (and subject to HSA annual contribution limits). So there is no net reduction in tax liability compared to taking a [normal] distribution (after age 59.5) from a tIRA and making an HSA ann...
by David Jay
Fri Apr 16, 2021 4:28 pm
Forum: Personal Finance (Not Investing)
Topic: Spend down cash to bridge to social security?
Replies: 25
Views: 2552

Re: Spend down cash to bridge to social security?

It depends on how large the 401K is. If you have over a half million in the 401K then you will want to spend to at least the top of the 12% bracket (about $53,000 if filing single) from the 401K to prevent even larger RMDs in the future. If the 401K is small, then spending the cash is fine. I would...
by David Jay
Fri Apr 16, 2021 4:11 pm
Forum: Personal Investments
Topic: Correctly Measuring Margin
Replies: 3
Views: 275

Re: Correctly Measuring Margin

Welcome to the forum! I see that you have had nearly 60 views, but no one has responded. There are a very limited number of people here on the Boglehead forum who are running shorts in their portfolio. Most of us hold broad-based index portfolios without leverage, at least as core holdings. Let me b...
by David Jay
Fri Apr 16, 2021 1:51 pm
Forum: Personal Finance (Not Investing)
Topic: Spend down cash to bridge to social security?
Replies: 25
Views: 2552

Re: Spend down cash to bridge to social security?

It depends on how large the 401K is. If you have over a half million in the 401K then you will want to spend to at least the top of the 12% bracket (about $53,000 if filing single) from the 401K to prevent even larger RMDs in the future. If the 401K is small, then spending the cash is fine. I would ...
by David Jay
Fri Apr 16, 2021 1:45 pm
Forum: Personal Consumer Issues
Topic: Anyone buy a Toyota Rav4 Hybrid recently?
Replies: 23
Views: 2383

Re: Anyone buy a Toyota Rav4 Hybrid recently?

Toyota certainly knows how to engineer hybrids.
by David Jay
Fri Apr 16, 2021 1:44 pm
Forum: Investing - Theory, News & General
Topic: Total market investors, do you feel comfortable with only a handful of companies at the top?
Replies: 44
Views: 3600

Re: Total market investors, do you feel comfortable with only a handful of companies at the top?

Or, to Taylor's point, will owning the entire market allow one to benefit from the newcomers as they ride up to the top, negating any real loss from the rotation? Exactly. GE down, Tesla up. To steal a thought from Nisiprius, in Total Market I owned Tesla before Tesla was cool. (there were discussi...