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by 1210sda
Thu May 21, 2015 4:40 pm
Forum: Investing - Help with Personal Investments
Topic: Article on Drawdowns (the real returns)
Replies: 17
Views: 1015

Re: Article on Drawdowns (the real returns)

My question : Is there a formula for calculating the drag on the CAGR brought about by the sequence of returns? (ex ante) 1210 Sequence of returns matters when there are contributions to and withdrawals from the investment. The return to calculate in that case is the internal rate of return. This c...
by 1210sda
Thu May 21, 2015 9:41 am
Forum: Investing - Help with Personal Investments
Topic: Article on Drawdowns (the real returns)
Replies: 17
Views: 1015

Re: Article on Drawdowns (the real returns)

Roughly speaking, volatility will take away [ 0.5 * (standard deviation of market returns)^2 ] from the average return per year. The standard deviation of the returns you listed is about 19%. Therefore and approximately speaking, volatility took a bite of about 0.5*(.19)^2 = 1.8% per year. This lea...
by 1210sda
Mon May 18, 2015 12:47 pm
Forum: Investing - Help with Personal Investments
Topic: Comparison of the Three Fund portfolio to LifeStrategy Moderate Growth to my old (14 fund) portfolio
Replies: 2
Views: 619

Comparison of the Three Fund portfolio to LifeStrategy Moderate Growth to my old (14 fund) portfolio

Thought I'd share this with you......... I had a 14 fund portfolio (Vanguard, DFA, Acorn 20th Century, Tweedy Browne, etc) using the three factor approach (size and value) for many, many years. In the middle of 2010 (almost 5 years ago) I decided to switch to the Three Fund Portfolio. I believe at t...
by 1210sda
Tue May 12, 2015 7:47 am
Forum: Investing - Help with Personal Investments
Topic: Vanguard Financial Plan Under the New [ 0.3% ] Fee
Replies: 33
Views: 5149

Re: Vanguard Financial Plan Under the New [ 0.3% ] Fee

Don't the Life Strategy funds do pretty much the same thing that VPAS will be doing? Fund selection, Asset allocation. etc..... 1210 LifeStrategy funds don't come with an advisor you can talk to outside fund selection and asset allocation unless you have $500k. OK, I'll restate..... For those with ...
by 1210sda
Tue May 12, 2015 6:55 am
Forum: Investing - Theory, News & General
Topic: "Why Would an Experienced Investor Buy a Target-Date Fund?"
Replies: 38
Views: 4584

Re: "Why Would an Experienced Investor Buy a Target-Date Fund?"

I would use one in tax deferred if it were possible for them to also exist with munis for taxable. Now if that ever changes, I will jump on it. I too would jump for munis......do you have any influence with Vanguard ?? :happy 1210 Replacing the bond portion of each TR fund with munis could certainl...
by 1210sda
Mon May 11, 2015 8:49 pm
Forum: Investing - Theory, News & General
Topic: "Why Would an Experienced Investor Buy a Target-Date Fund?"
Replies: 38
Views: 4584

Re: "Why Would an Experienced Investor Buy a Target-Date Fund?"

I would use one in tax deferred if it were possible for them to also exist with munis for taxable. Now if that ever changes, I will jump on it. I too would jump for munis......do you have any influence with Vanguard ?? :happy 1210 Replacing the bond portion of each TR fund with munis could certainl...
by 1210sda
Mon May 11, 2015 7:42 pm
Forum: Investing - Theory, News & General
Topic: "Why Would an Experienced Investor Buy a Target-Date Fund?"
Replies: 38
Views: 4584

Re: "Why Would an Experienced Investor Buy a Target-Date Fund?"

columbia wrote:I would use one in tax deferred if it were possible for them to also exist with munis for taxable.
Now if that ever changes, I will jump on it.


I too would jump for munis......do you have any influence with Vanguard ?? :happy
1210
by 1210sda
Mon May 11, 2015 10:59 am
Forum: Investing - Help with Personal Investments
Topic: Vanguard Financial Plan Under the New [ 0.3% ] Fee
Replies: 33
Views: 5149

Re: Vanguard Financial Plan Under the New [ 0.3% ] Fee

Don't the Life Strategy funds do pretty much the same thing that VPAS will be doing? Fund selection, Asset allocation. etc.....
1210
by 1210sda
Sat May 09, 2015 12:15 pm
Forum: Personal Finance (Not Investing)
Topic: New Math for Retirees and the 4% Withdrawal Rule
Replies: 89
Views: 9740

Re: New Math for Retirees and the 4% Withdrawal Rule

I estimate that at RMD we (65/68) will have a perpetual 5%-5.5%, SWR, regardless of markets. The taxation on this SWR will be quite high. Most of working lives we were in the lowest brackets. :oops: Don't forget "RMD" does not mean you have to spend it, just withdraw it from your tax adv ...
by 1210sda
Sat May 09, 2015 8:53 am
Forum: Personal Finance (Not Investing)
Topic: Is anyone familiar with the robo adviser Financial Guard?
Replies: 1
Views: 301

Is anyone familiar with the robo adviser Financial Guard?

I just became aware of Financial Guard. It seems they do whatever it is they do for a couple of hundred dollars a year, regardless of size of portfolio. Seems to fall in the category of too good to be true, but still worth checking out.

1210
by 1210sda
Sat May 09, 2015 7:44 am
Forum: Personal Finance (Not Investing)
Topic: New Math for Retirees and the 4% Withdrawal Rule
Replies: 89
Views: 9740

Re: NYT article on 4% retirement

Thank you for posting this.
1210
by 1210sda
Fri May 08, 2015 10:14 am
Forum: Personal Consumer Issues
Topic: What to do with mink coat
Replies: 30
Views: 2293

Re: What to do with mink coat

Gnirk wrote:Make it into decorator pillows, or teddy bear for the grandkids.


Hey, thanks. I've been wondering what to do with my mother's old fur coat; this sounds like a great idea if it's not too expensive.

1210
by 1210sda
Wed May 06, 2015 9:40 am
Forum: Investing - Theory, News & General
Topic: Vanguard Personal Advisor Services now live
Replies: 38
Views: 5332

Re: Vanguard Personal Advisor Sevices now live

Flagship clients have a benefit called "Access to a financial adviser". This is free. Is this the same as VPAS or not?
1210
by 1210sda
Tue May 05, 2015 9:24 am
Forum: Personal Consumer Issues
Topic: Cruises
Replies: 35
Views: 4484

Re: Cruises

My suggestions: 1. Stick to one cruise line (For us it's Royal Caribbean) 2. Join their frequent cruiser societies (Crown and Anchor) This way you earn points and discounts. (up to $250.00 for Diamond Plus members) 3. Use a Visa/RCCL credit card and get dollar credits ($150.00 for 15,000 points) 4. ...
by 1210sda
Sun May 03, 2015 1:55 pm
Forum: Investing - Theory, News & General
Topic: Do Active Bond Funds Beat Index Bond Funds?
Replies: 27
Views: 2046

Re: Do Active Bond Funds Beat Index Bond Funds?

Of course we need to be accurate here and point out that an index fund that is properly tracking its index will never beat that index, net of expenses. At least some active funds will beat their indexes some of the time. Since Van Total Bond Mkt (Admiral) has an expense ratio of 7 bp, it will never...
by 1210sda
Sun May 03, 2015 8:31 am
Forum: Investing - Help with Personal Investments
Topic: Everyone is saying to get out of Bond Funds? Ignore?
Replies: 41
Views: 4906

Re: Everyone is saying to get out of Bond Funds? Ignore?

Ditto 2013, when the 10-year rate doubled from 1.5% to 3% in a matter of about six months. In other words, interest rate increases have already happened twice since 2010. Thanks Nisi. For 2013 in particular. The Van Total Bond Mkt had a -2.15% total return. Van Total Stk Mkt had a 33.51% total retu...
by 1210sda
Sun May 03, 2015 8:19 am
Forum: Investing - Help with Personal Investments
Topic: Everyone is saying to get out of Bond Funds? Ignore?
Replies: 41
Views: 4906

Re: Everyone is saying to get out of Bond Funds? Ignore?

OTOH if you're retired and drawing down your bonds for living expenses it could be a double whammy. Not only are you withdrawing living expenses, but the pot you are taking them from is shrinking more than your withdrawals. This could force some to tighten their belts a few more notches or risk run...
by 1210sda
Sun May 03, 2015 7:29 am
Forum: Investing - Theory, News & General
Topic: Do Active Bond Funds Beat Index Bond Funds?
Replies: 27
Views: 2046

Re: Do Active Bond Funds Beat Index Bond Funds?

You're ok until the last sentence. All investors as a whole can't beat the market, but active bond mutual funds are not all active bond investors. The funds as a whole could all overperform or all underperform or some mix relative to the bond market at large, and they could do this at the expense o...
by 1210sda
Sat May 02, 2015 1:25 pm
Forum: Investing - Theory, News & General
Topic: Do Active Bond Funds Beat Index Bond Funds?
Replies: 27
Views: 2046

Re: Do Active Bond Funds Beat Index Bond Funds?

You're ok until the last sentence. All investors as a whole can't beat the market, but active bond mutual funds are not all active bond investors. The funds as a whole could all overperform or all underperform or some mix relative to the bond market at large, and they could do this at the expense o...
by 1210sda
Wed Apr 29, 2015 3:53 pm
Forum: Investing - Help with Personal Investments
Topic: LifeStrategy Moderate Growth vs Separate funds
Replies: 51
Views: 5541

Re: LifeStrategy Moderate Growth vs Separate funds

Livesoft, I ran my new model per your guide. It can get pretty complicated. Another factor I am considering is Total Cash Flow vs Needed Cash Flow. Because of dividends, Soc Sec and RMD's we have excess c/f. I'm not quite ready to start distributions to our kids, so I am reinvesting this excess, and...
by 1210sda
Wed Apr 29, 2015 3:21 pm
Forum: Investing - Help with Personal Investments
Topic: LifeStrategy Moderate Growth vs Separate funds
Replies: 51
Views: 5541

Re: LifeStrategy Moderate Growth vs Separate funds

Thank you very much for your response. My concern in using funds with different Expected Returns and different AA (LS Growth and LS Conservative Growth) is that the AA will grow even more out of balance (too much equity) over time. In addition, I am taking out the RMD from our tax advantaged accoun...
by 1210sda
Wed Apr 29, 2015 10:54 am
Forum: Investing - Help with Personal Investments
Topic: LifeStrategy Moderate Growth vs Separate funds
Replies: 51
Views: 5541

Re: LifeStrategy Moderate Growth vs Separate funds

Hi 1210sda, I have been considering this as well in terms of the impact to our spouses. Some of us may be kidding ourselves if we believe our spouses are going to pick right up where we left off and there would be no issues to consider Considering that, and also weighing "simplicity" with...
by 1210sda
Wed Apr 29, 2015 10:41 am
Forum: Investing - Help with Personal Investments
Topic: LifeStrategy Moderate Growth vs Separate funds
Replies: 51
Views: 5541

Re: LifeStrategy Moderate Growth vs Separate funds

I do not have any suggestions. You can calculate now what the taxes would be for your spouse after you die and your spouse puts everything in a LifeStrategy fund. It may not be as bad as you think. Or perhaps your spouse could use LF Growth in taxable and LF Conservative Growth in tax-advantaged. T...
by 1210sda
Tue Apr 28, 2015 8:35 am
Forum: Investing - Help with Personal Investments
Topic: LifeStrategy Moderate Growth vs Separate funds
Replies: 51
Views: 5541

Re: LifeStrategy Moderate Growth vs Separate funds

May I ask if you invest in either the Target or LifeStrategy funds? If so, what are your thoughts? I do not invest in either of these funds. My portfolio is about 40% taxable and 60% tax-advantaged. I try to be reasonably tax-efficient. Nevertheless, it is always on my mind, "Why bother if I c...
by 1210sda
Wed Apr 22, 2015 7:13 pm
Forum: Investing - Theory, News & General
Topic: "How much of your portfolio is in index funds, and why?"
Replies: 91
Views: 8489

Re: "How much of your portfolio is in index funds, and why?"

100% in Index Funds at Vanguard. Why?, Rick Ferri's book "The Power of Passive Investing" convinced me and Larry Swedroe's "The Incredible Shrinking Alpha" just re-enforced my convictions. (if you haven't read them, I highly recommend them) 1210 BTW, yes, an index outperforms the...
by 1210sda
Wed Apr 22, 2015 10:01 am
Forum: Investing - Theory, News & General
Topic: Retirement calculator source code
Replies: 2
Views: 522

Re: Retirement calculator source code

Thnaks Gordon. This looks really cool. I need to play around with it for a while to fully appreciate. Again, Thanks for making it available to BH's
1210
by 1210sda
Wed Apr 22, 2015 9:02 am
Forum: Investing - Theory, News & General
Topic: Retirees: What is your SWR in retirement?
Replies: 45
Views: 4081

Re: Retirees: What is your SWR in retirement?

Have been retired for 13 years. Currently, our withdrawal rate comes out to 2.5% of our portfolio. I am receiving Soc Sec and DW will start next year. We also plan on "step backs" as we get older. I have a spread sheet with retirement income,spending and portfolio balance projections till ...
by 1210sda
Fri Apr 17, 2015 6:14 pm
Forum: Personal Finance (Not Investing)
Topic: Is the step up in basis still valid
Replies: 4
Views: 388

Re: Is the step up in basis still valid

I've searched the internet and still can't find anything that resembles what my friend said. I didn't think to ask him at the time, but maybe he was thinking of Pres Obama's State of the Union 2015 address. There he indicated his interest in eliminating the step up in basis. Maybe.

1210
by 1210sda
Fri Apr 17, 2015 5:01 pm
Forum: Personal Finance (Not Investing)
Topic: Is the step up in basis still valid
Replies: 4
Views: 388

Is the step up in basis still valid

Is the step up in basis at death still valid? Some one suggested to me quite recently that the step up had been eliminated under the Bush administration, but that it wasn't being enforced. In other words, the step up is no longer legal, but it is still being allowed or overlooked. This is contrary t...
by 1210sda
Tue Apr 14, 2015 5:32 pm
Forum: Investing - Theory, News & General
Topic: WSJ: You may need less than 80% in retirement
Replies: 98
Views: 9257

Re: WSJ: You may need less than 80% in retirement

My retirement spending equals 100% of my pre-retirement spending. Several reasons. My kids graduated from college before I retired. I paid off my mortgage before I retired. So there was not a reduction for these after I retired. The only major changes for me were that I no longer have to save for re...
by 1210sda
Tue Apr 14, 2015 9:40 am
Forum: Personal Finance (Not Investing)
Topic: Talking to People About Retirement
Replies: 70
Views: 6597

Re: Talking to People About Retirement

I retired at age 59, but re-located right away. At the new destination, I was able to stay under the radar fairly easily.
1210
by 1210sda
Thu Apr 02, 2015 8:03 am
Forum: Investing - Help with Personal Investments
Topic: 401K: Rollover to new employer or to an IRA ??
Replies: 3
Views: 251

401K: Rollover to new employer or to an IRA ??

My grandson is moving to a new company. He has a 401K at his current employer with around $50k. His new employer also has a 401K plan. What are the main things to consider in deciding whether to roll over (trustee to trustee) to his new employer or to open an IRA at Vanguard.?? Thanks in advance. 1210
by 1210sda
Thu Apr 02, 2015 7:57 am
Forum: Investing - Theory, News & General
Topic: The Detriments of Rebalancing
Replies: 67
Views: 5961

Re: The Detriments of Rebalancing

In the past few years it has been rather difficult to get "out of balance" if one is using a Swedroe 5/25 rule of rebalancing bands and manually re-investing dividends and cap gains distributions. That is, it takes rather significant movements in market segments to push one's asset alloca...
by 1210sda
Wed Apr 01, 2015 5:23 pm
Forum: Investing - Theory, News & General
Topic: News article: Vanguard Bets Big on Financial Advice
Replies: 24
Views: 3195

Re: News article: Vanguard Bets Big on Financial Advice

In the article, McNabb states that research shows an adviser can add 3% points to investment portfolios by providing discipline and by focusing on AA. Seems like a lot. I guess most BH's already have discipline and already focus on AA, so the return benefit to them/us might be minimal. Perhaps it is...
by 1210sda
Sun Mar 29, 2015 6:01 pm
Forum: Investing - Theory, News & General
Topic: Retirement calculation lies? [Geometric vs. arithmetic mean]
Replies: 49
Views: 5640

Re: Retirement calculation lies? [Geometric vs. arithmetic m

Oicuryy wrote:{=GEOMEAN(1+ B66:B70)-1}

Ron


Ron when I tried this, I got the answer...... #VALUE!

1210
by 1210sda
Sun Mar 29, 2015 1:12 pm
Forum: Investing - Theory, News & General
Topic: Retirement calculation lies? [Geometric vs. arithmetic mean]
Replies: 49
Views: 5640

Re: Geometric mean (Retirement calculation lies?)

And: Sequence 2 (from toto238's post **) : 10%, -20%, 37%, 12%, -6% Use Excel's geomean: =GEOMEAN(10%,-20%,37%,12%,-6%) gives an error. It doesn't handle the negatives. When I use geomean in excel, I add 1(100%) to each entry and then subtract 1(100%)from the answer. For example, 110%,80%,137%,112%...
by 1210sda
Sat Mar 28, 2015 11:59 am
Forum: Investing - Theory, News & General
Topic: Retirement calculation lies? [Geometric vs. arithmetic mean]
Replies: 49
Views: 5640

Re: Retirement calculation lies?

In the Bogleheads Guide to Retirement, the Starting Early section states, “Eric Early starts investing at age 25 and invests $4000 each year in a Roth IRA until age 35 and then invests nothing. At 8 percent interest his $40,000 grows to more than $629,000 by age 65.” I must have a different edition...
by 1210sda
Tue Mar 24, 2015 4:35 pm
Forum: Personal Finance (Not Investing)
Topic: Removing an asset from a living trust: Taxable event ??
Replies: 12
Views: 1143

Removing an asset from a living trust: Taxable event ??

I have a revocable living trust. If I decide to remove an asset from the trust, is this a taxable event, or just merely a name or ownership change??

It wouldn't seem to be a taxable event, but not sure. Any one with experience on this??

1210
by 1210sda
Sun Mar 22, 2015 1:27 pm
Forum: Personal Consumer Issues
Topic: External Hard Drive?
Replies: 44
Views: 2737

Re: External Hard Drive?

2. Flash Drives: Flash drives are about .50 a GB on sale (IE 16GB flash drive can be found for $8). The flash drives are not nearly as stable as the regular ext. hard drives. I've gone through 5 flash drives in two years, but I have the same external hard drives that I bought 3 and 5 years ago (plu...
by 1210sda
Wed Mar 18, 2015 10:12 am
Forum: Investing - Theory, News & General
Topic: [New Member Observations- Covered Calls, Financial Advisors]
Replies: 227
Views: 18476

Re: Observations from a first time poster, long time reader.

Grt2bOutdoors wrote: I would expect your total return has been much higher than 0.5% annually. :)


Isn't this 5%, not 0.5% ??

1210
by 1210sda
Sat Mar 14, 2015 10:11 am
Forum: Investing - Theory, News & General
Topic: Improving the Lifestrategy Funds
Replies: 63
Views: 5592

Re: Is Tax-Managed Balanced Fund Passive?

Is the Tax Managed balanced fund a passive investment?? 1210: No. This is a quote from the fund Prospectus: Primary Investment Strategies The Fund invests approximately 50% to 55% of its assets in municipal securities and the balance in common stocks. The fixed income portion of the Fund is concent...
by 1210sda
Fri Mar 13, 2015 2:04 pm
Forum: Investing - Theory, News & General
Topic: Improving the Lifestrategy Funds
Replies: 63
Views: 5592

Re: Improving the Lifestrategy Funds

If only could do muni bonds for taxable accounts. Hi LA: This request comes up frequently. The reason that Vanguard has only one balanced fund that includes muni bonds (the tax-managed balanced fund) is that regulations require that a mutual fund hold at least 50% of fund assets in muni securities ...
by 1210sda
Thu Mar 12, 2015 7:49 am
Forum: Investing - Help with Personal Investments
Topic: Do you really need 2.5 million to retire well?
Replies: 121
Views: 13647

Re: Do you really need 2.5 million to retire well?

I went to the Legg Mason website and found the following: "The U.S. portion of the Legg Mason Global Investment Survey was conducted among 458 affluent investors with a minimum of $200,000 in investable assets not including their home." " Average age: 58; Average Savings in Retirement...
by 1210sda
Wed Mar 11, 2015 11:03 am
Forum: Investing - Theory, News & General
Topic: If 2% is real, we are . . . . ?
Replies: 63
Views: 6661

Re: If 2% is real, we are . . . . ?

I ran some numbers this morning on an expected 2% return on investments . Basically if a person is looking to live off of the classic 70% of their pay and plans on saving for 30 years for their retirement, at what percentage of their wages should they save? I calculated based on a SWR of 2% and 3% ...
by 1210sda
Tue Mar 10, 2015 8:06 am
Forum: Investing - Theory, News & General
Topic: Bernstein: 2% investment returns over next 20 years
Replies: 216
Views: 24441

Re: Bernstein: 2% investment returns over next 20 years

Am I the only one that would be ecstatic with real returns of 2% over the next 20 years? Ecstatic seems a strong word... but I'd certainly be OK if stocks returned 4% over the next 20 since I pull less than 4%. As such my money would never run out :sharebeer Beware sequence of returns How much of a...
by 1210sda
Thu Feb 26, 2015 11:27 am
Forum: Personal Finance (Not Investing)
Topic: physicians [Frustrated, considering early retirement]
Replies: 132
Views: 10155

Re: physicians [Frustrated, considering early retirement]

This topic is thought provoking for me as a patient.

On the one hand, it concerns me in regards to my relationship with my doctor. What is he thinking? What stresses does he have? How does that affect the care I receive?

On the other hand, I now have greater sympathy for him.

1210
by 1210sda
Wed Feb 25, 2015 5:31 pm
Forum: Investing - Theory, News & General
Topic: Foreign Stocks in Taxable - Gotcha w/ foreign tax credit
Replies: 58
Views: 7651

Re: Foreign Stocks in Taxable - Gotcha w/ foreign tax credit

Does Turbo Tax deal with this issue correctly?

1210
by 1210sda
Mon Feb 23, 2015 5:39 pm
Forum: Investing - Help with Personal Investments
Topic: The challenges of staying the course...
Replies: 66
Views: 5614

Re: The challenges of staying the course...

Thanks We have also gone back to our 2013 returns and calculated all contributions for 2014 and appears our 2014 performance is 8.42%, not the 2.8% that began my whining. LOL...:-D this sounds like the Beardstown Ladies in reverse. How did you discover the mistake. That's quite a difference. 1210
by 1210sda
Sun Feb 22, 2015 12:57 pm
Forum: Personal Finance (Not Investing)
Topic: Please Help Me Explain an Equity Index Annuity to a Relative
Replies: 37
Views: 2597

Re: Please Help Me Explain an Equity Index Annuity to a Rela

... I too have been at a "free" dinner where they pitched equity index annuities. ... If you go to the free dinner seminar, and you're the one who buys the annuity, the living trust, the timeshare, or the bridge, not only did you pay for your free dinner, but you paid for the free dinners...

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