To minimize expenses even further would it not be better to invest in Vanguard Total Stock and Vanguard International stock rather than Vanguard World Stock? Maybe its splitting hairs but as Jack said " you get what you don't pay for".
Been with Vanguard for many years. The Life Strategy Growth fund meets my requirements perfectly. Do not need to change from it until my final departure. Why pay Vanguard an additional 0.3% annually to "advise" or "manage" my account - amounts to $3000 annually for every $1m in assets. Rather spend it on a cruise or something else.
Excellent analysis and observations! Trying to predict tax rates in the future is even more futile than trying to pick active mutual funds.
You are one of the very few commentators in the personal finance space to point out that Roth conversions may not be the most optimum strategy for everyone. In 2015 who would have guessed that overall tax rates would be lower in 2017? Listening to the gurus who were advocating Roth conversions pre 2016 would have resulted in much higher tax liabilities for conversion. And who knows what's going to happen 12 months from now?
Saint Jack was never a fan of investing internationally. His opinion was that US stocks provided sufficient international exposure. What is the "international component" of the US Total Stock Market (Index)?
Dave Ramsey has provided incalculable service by making people aware of the evils of debt. I have no problem with him making an honest buck and capitalizing on his advice. However, one must be aware that his investment advice and pushing shady products are a blot on his reputation:
1) As mentioned by another poster, he sponsored a Time share exit company that has been indicted by the state of WA. DR stopped pushing this company but has not yet admitted his mistake. The scuttlebutt is that his sponsorship revenue was substantial.
2) DR has always promoted mutual funds which have higher expense ratios and front or back end loads. Jack Bogle and numerous fiduciary oriented financial experts have always advised to go with low cost index funds. "You don't get what you pay for".
I am 70 and the rudest shock we are experiencing is dental expenses. $2K for a root canal, $4K- $5K for an implant etc. etc. The insurance policies are not worth a d***. After paying premiums and deductibles the policies limit you to a maximum benefit of $1- $1.5K annually. We dropped our dental insurance and pay our dentist a fixed amount annually for two clean ups, annual x-ray and a 10% discount for other procedures.
I would be interested in hearing how others are handling dental coverage.
As you mentioned, I am also in favor of direct investment in funds rather than using Target date or Life Strategy fund of funds. Why spend an extra .08% (and over) in expenses which can add up substantially. Rebalancing once a year would take less than 15 minutes.
As someone who was closely involved with the marketing of extended service plans I can state unequivocally that these plans have high profit margins and are extremely lucrative for the underwriters, distributors/dealers and salespeople. Most auto dealerships have an unwritten rule that a salesperson must sell the extended warranties to at least 70% of their customers. Salespeople in any industry are under tremendous pressure to sell these services; the pressure is passed on to the customer. I have read that less than 20% of extended service plans are ever used. If a plan is carefully analyzed - the upfront cost, deductibles, mileage and time limits, exclusions, it becomes very apparent that a customer is much better off escrowing the premium in a savings account and using it for unexpected repairs. Even some of the self described customer centric national used car chains shamelessly push these rip off plans.
Comments
To minimize expenses even further would it not be better to invest in Vanguard Total Stock and Vanguard International stock rather than Vanguard World Stock? Maybe its splitting hairs but as Jack said " you get what you don't pay for".
Post: Index Three Ways
Link to comment from March 22, 2025
Been with Vanguard for many years. The Life Strategy Growth fund meets my requirements perfectly. Do not need to change from it until my final departure. Why pay Vanguard an additional 0.3% annually to "advise" or "manage" my account - amounts to $3000 annually for every $1m in assets. Rather spend it on a cruise or something else.
Post: Making It Easy
Link to comment from March 3, 2024
Excellent analysis and observations! Trying to predict tax rates in the future is even more futile than trying to pick active mutual funds. You are one of the very few commentators in the personal finance space to point out that Roth conversions may not be the most optimum strategy for everyone. In 2015 who would have guessed that overall tax rates would be lower in 2017? Listening to the gurus who were advocating Roth conversions pre 2016 would have resulted in much higher tax liabilities for conversion. And who knows what's going to happen 12 months from now?
Post: Called to Account
Link to comment from January 27, 2024
Saint Jack was never a fan of investing internationally. His opinion was that US stocks provided sufficient international exposure. What is the "international component" of the US Total Stock Market (Index)?
Post: Happily Ever After
Link to comment from December 16, 2023
If you don't answer the phone, you will not get scammed. If the caller is legitimate, he/she will leave a message (they very rarely do).
Post: Almost Had Me
Link to comment from October 7, 2023
Dave Ramsey has provided incalculable service by making people aware of the evils of debt. I have no problem with him making an honest buck and capitalizing on his advice. However, one must be aware that his investment advice and pushing shady products are a blot on his reputation: 1) As mentioned by another poster, he sponsored a Time share exit company that has been indicted by the state of WA. DR stopped pushing this company but has not yet admitted his mistake. The scuttlebutt is that his sponsorship revenue was substantial. 2) DR has always promoted mutual funds which have higher expense ratios and front or back end loads. Jack Bogle and numerous fiduciary oriented financial experts have always advised to go with low cost index funds. "You don't get what you pay for".
Post: Finding Hope
Link to comment from September 16, 2023
I am 70 and the rudest shock we are experiencing is dental expenses. $2K for a root canal, $4K- $5K for an implant etc. etc. The insurance policies are not worth a d***. After paying premiums and deductibles the policies limit you to a maximum benefit of $1- $1.5K annually. We dropped our dental insurance and pay our dentist a fixed amount annually for two clean ups, annual x-ray and a 10% discount for other procedures. I would be interested in hearing how others are handling dental coverage.
Post: Paying Those Premiums
Link to comment from September 16, 2023
Congratulations on your incredible achievements! I wish I had half your intelligence and perseverance.
Post: Guns to Stethoscopes
Link to comment from September 16, 2023
As you mentioned, I am also in favor of direct investment in funds rather than using Target date or Life Strategy fund of funds. Why spend an extra .08% (and over) in expenses which can add up substantially. Rebalancing once a year would take less than 15 minutes.
Post: Mix and Match
Link to comment from September 9, 2023
As someone who was closely involved with the marketing of extended service plans I can state unequivocally that these plans have high profit margins and are extremely lucrative for the underwriters, distributors/dealers and salespeople. Most auto dealerships have an unwritten rule that a salesperson must sell the extended warranties to at least 70% of their customers. Salespeople in any industry are under tremendous pressure to sell these services; the pressure is passed on to the customer. I have read that less than 20% of extended service plans are ever used. If a plan is carefully analyzed - the upfront cost, deductibles, mileage and time limits, exclusions, it becomes very apparent that a customer is much better off escrowing the premium in a savings account and using it for unexpected repairs. Even some of the self described customer centric national used car chains shamelessly push these rip off plans.
Post: When does it make sense to buy the extended warranty, if ever?
Link to comment from April 23, 2022