Search found 922 matches

by 1210sda
Mon Jul 27, 2015 2:02 pm
Forum: Investing - Theory, News & General
Topic: Scott Burns – Don’t quit your day job.
Replies: 98
Views: 9263

Re: Scott Burns – Don’t quit your day job.

# 4 The 4% SWR studies don't directly come out and say this, but MOST OF THE TIME those retirees ended up with more than they retired with after 30 years. It's only in the really bad time periods that you even get close to running out of money. So if 4% worked retiring in 1929, you've got to really...
by 1210sda
Sun Jul 26, 2015 10:33 am
Forum: Investing - Theory, News & General
Topic: Scott Burns – Don’t quit your day job.
Replies: 98
Views: 9263

Re: Scott Burns – Don’t quit your day job.

What in the world are “parameterized returns” ???

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by 1210sda
Wed Jul 22, 2015 2:15 pm
Forum: Investing - Theory, News & General
Topic: Is Harry Markowitz wrong? Why Optimal Portfolios Are So Difficult To Create
Replies: 33
Views: 2971

Re: Is Harry Markowitz wrong? Why Optimal Portfolios Are So Difficult To Create

From the Article: "The weighted average method to estimating a portfolio’s overall risk and return may be a throwback in time, but it is conservative and does eliminate errors from inaccurate asset class covariance or correlation forecasts. You can read more about this method in my book, All A...
by 1210sda
Sun Jul 19, 2015 11:49 am
Forum: Personal Finance (Not Investing)
Topic: A retiree's personal experience...
Replies: 37
Views: 6541

Re: A retiree's personal experience...

I retired in late 2005. My current average draw from my 50/50 portfolio is around 5%. My median annual return since I retired has been around 10%. Seeing how I retired right between two rather severe down events in the stock market I have no complaints. :beer Thank you for sharing. Two questions: 1...
by 1210sda
Thu Jul 16, 2015 1:34 pm
Forum: Personal Consumer Issues
Topic: Should we fix a car scrape before getting Carmax quote?
Replies: 12
Views: 1320

Re: Should we fix a car scrape before getting Carmax quote?

Lis999, thanks for your post. I have a similar situation and I didn't think to run it by the Bogleheads...shame on me.

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by 1210sda
Sat Jul 11, 2015 1:34 pm
Forum: Investing - Theory, News & General
Topic: Wealthfront - worth 25 basis points??
Replies: 22
Views: 2752

Re: Wealthfront - worth 25 basis points??

I went completely to the Three Fund Portfolio in the 2nd qtr, 2010. My Asset Allocation targets are 60% Stocks and 40% Bonds. My re-balancing bands are + or - 5%. (i.e. for Stocks, either 65% or 55% would trigger re-balancing). I am retired and in the distribution phase and I am subject to RMD. My s...
by 1210sda
Fri Jul 10, 2015 12:51 pm
Forum: Personal Consumer Issues
Topic: One car or two in semi-retirement?
Replies: 49
Views: 3340

Re: One car or two in semi-retirement?

practice sharing one of your cars for a month; that experience will answer your question for you. even if you choose to keep 2 cars now, if you don't miss the second car that much, you might decide not to replace the second car when it becomes expensive to repair. FWIW, couples I know who live in a...
by 1210sda
Fri Jul 03, 2015 9:14 am
Forum: Investing - Theory, News & General
Topic: Spreadsheet for backtesting (includes TrevH's data)
Replies: 675
Views: 422201

Re: Spreadsheet for backtesting (includes TrevH's data)

Definitely I want to see your spreadsheet. Thanks
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by 1210sda
Sun Jun 28, 2015 7:29 am
Forum: Personal Consumer Issues
Topic: Home cleaning services
Replies: 30
Views: 3350

Re: Home cleaning services

dodecahedron wrote:3) Is the team part of a service that carries liability insurance, workers' comp, and complies with all applicable labor laws?


What liability risks does the homeowner/employer have?

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by 1210sda
Fri Jun 26, 2015 11:11 am
Forum: Investing - Theory, News & General
Topic: Did 2008 change your investing strategy?
Replies: 58
Views: 5437

Re: Did 2008 change your investing strategy?

2008 did not change my strategy (IPS). However, the markets did affect my actual AA big time. My AA target was 60/40 with 5% rebalancing bands. (I don't remember if they were referred to as "bands" back then). At the start of 2008, I was at 64%; since I was within the 5% band, I didn't reb...
by 1210sda
Tue Jun 23, 2015 9:11 pm
Forum: Investing - Help with Personal Investments
Topic: Holding a LifeStrategy Fund in a Taxable Account
Replies: 18
Views: 1993

Re: Holding a LifeStrategy Fund in a Taxable Account

If you are going to hold an all-in-one fund in a taxable account, the Target Retirement funds are better than the LifeStrategy funds, because you are less likely to need to sell the fund to change your allocation. If you have LS Moderate Growth and then retire and want to switch to LS Conservative ...
by 1210sda
Tue Jun 23, 2015 9:06 pm
Forum: Investing - Help with Personal Investments
Topic: Holding a LifeStrategy Fund in a Taxable Account
Replies: 18
Views: 1993

Re: Holding a LifeStrategy Fund in a Taxable Account

Using my own numbers (portfolio, tax bracket, etc), I compared the cost of VPAS to the higher expense ratio of Lifestrategy Moderate Growth fund and the higher income tax liability of VSMGX (no Qualified Dividend Income treatement on the Bond dividends) and the VPAS was higher. 1210 The bonds in yo...
by 1210sda
Tue Jun 23, 2015 5:16 pm
Forum: Investing - Help with Personal Investments
Topic: Holding a LifeStrategy Fund in a Taxable Account
Replies: 18
Views: 1993

Re: Holding a LifeStrategy Fund in a Taxable Account

My choices are: 1) Use the 3 Fund Portfolio and have the folks at VPAS manage it at an annual cost of 0.3%(30 bp) or use the Life Strategy Moderate Growth fund(VSMGX) in both taxable and tax advantaged accounts with no one to manage it. Using my own numbers (portfolio, tax bracket, etc), I compared ...
by 1210sda
Tue Jun 23, 2015 7:08 am
Forum: Investing - Theory, News & General
Topic: Robo Advisor for people in retirement
Replies: 8
Views: 1552

Re: Robo Advisor for people in retirement

What is the current thinking about using a Robo Advisor in retirement. The Robo Advisors needs to do RMD, monthly paychecks to checking account and re-balancing. I am interested in simplicity. I currently have VSCGX, Vanguard LifeStrategy Conservative fund (4 fund portfolio). Will a Robo Advisor do...
by 1210sda
Mon Jun 22, 2015 10:37 am
Forum: Personal Finance (Not Investing)
Topic: What percent of your spending is "basic" and what percent is "discretionary"?
Replies: 42
Views: 4133

Re: What percent of your spending is "basic" and what percent is "discretionary"?

I started to do this, but eventually decided that my answer would depend more upon what my definitions were than what my spending was. Kenyan, I understand that this is driven by the definitions(and stage of life too). My thought was that if I get enough of a response, a general pattern would devel...
by 1210sda
Mon Jun 22, 2015 9:08 am
Forum: Personal Finance (Not Investing)
Topic: What percent of your spending is "basic" and what percent is "discretionary"?
Replies: 42
Views: 4133

What percent of your spending is "basic" and what percent is "discretionary"?

I've looked at our actual spending for the last several years and have concluded that about two thirds of our spending is for Basic expenses(food,shelter, etc.) and one third is for discretionary expenses.(Full disclosure:I did include some discretionary expenses in our "basic") :-) There ...
by 1210sda
Sun Jun 21, 2015 12:40 pm
Forum: Investing - Theory, News & General
Topic: The "4% Rule" revisited
Replies: 102
Views: 13994

Re: The "4% Rule" revisited

So, one can either take the position of preparing for the absolute worst case scenarios (i.e., another 1932 or 2000), or one can plan for the 95% most likely scenarios. It really is up to you. Just be aware that the SWR guideline was based on the latter, not the former. Could you explain the underl...
by 1210sda
Sun Jun 21, 2015 7:16 am
Forum: Investing - Theory, News & General
Topic: The "4% Rule" revisited
Replies: 102
Views: 13994

Re: Obvious Flaws in the 4% Rule

randomguy wrote:
You would have to be crazy to follow it or any other plan to the letter for 30+ years.


Agreed.

But, you would also be crazy NOT to use it as a guide......

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by 1210sda
Sat Jun 20, 2015 12:31 pm
Forum: Investing - Theory, News & General
Topic: The "4% Rule" revisited
Replies: 102
Views: 13994

Re: The "4% Rule" revisited

Great post Ron and I agree that Fidelity's Retirement Tool is excellent. Unfortunately, that's where we are going to have divergent opinions. I'm also 67 and near 3.5 years retired now. Investors have been experiencing what is the 4th longest running bull market in history, nearing 6.5 years now. I...
by 1210sda
Fri Jun 19, 2015 10:58 am
Forum: Personal Finance (Not Investing)
Topic: Saving vs Spending in Retirement ~
Replies: 30
Views: 4935

Re: Saving vs Spending in Retirement ~

To quote a famous politician "I feel your pain". It ain't easy. After a lifetime of being in a saving mode, it takes some effort to reverse the role. Hard as it may be, I am making a concerted effort to do a little "fringe" spending. So far so good. To me it's like a Tug-of-War b...
by 1210sda
Fri Jun 19, 2015 10:43 am
Forum: Investing - Theory, News & General
Topic: A Look Inside Jack Bogle's Office
Replies: 27
Views: 5149

Re: A Look Inside Jack Bogle's Office

Mel Lindauer wrote:. And, of course, the famous typewritten Princeton thesis that was the basis for Vanguard and indexing


Mel (or anyone), do you know if Jack's thesis is available on-line?

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by 1210sda
Thu Jun 18, 2015 1:31 pm
Forum: Investing - Theory, News & General
Topic: The "4% Rule" revisited
Replies: 102
Views: 13994

Re: The "4% Rule" revisited

The real thing to understand is that 4% is already a very conservative number... 4% worked during the Great Depression... and 3.7% worked for the unfortunate people who retired in 1966-67... 1966-1982 was 16 years of basically zero stock market gains (DOW was around 1000 in 1966 and still around 10...
by 1210sda
Wed Jun 17, 2015 10:23 am
Forum: Personal Finance (Not Investing)
Topic: Dave Ramsey
Replies: 53
Views: 9718

Re: Dave Ramsey

Dave went on a rant yesterday against index investing. He said " why would he want to be just average and match the market performance, even though most actively managed don't beat the market blah blah, why can't I just find the ones that do? It's not that hard people, just google it!" Da...
by 1210sda
Mon Jun 15, 2015 6:28 pm
Forum: Personal Finance (Not Investing)
Topic: Nice Milestone Reached Last Week
Replies: 41
Views: 6959

Re: Nice Milestone Reached Last Week

Jane you are a shining example. I know of many millenials who are nowhere close to your accomplishments. But then again, you are a boglehead...:)
Thanks for sharing this with us. It gives me hope for the future.
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by 1210sda
Sun Jun 14, 2015 5:59 pm
Forum: Personal Finance (Not Investing)
Topic: Long term care insurance - Less than meets the eye
Replies: 56
Views: 6397

Re: Long term care insurance - Less than meets the eye

I'm with randomguy and livesoft. Have a big pile of money. If I'm giving money to the nursing home, I'm no longer giving it to airlines, hotels, and restaurants (unless they deliver to nursing homes). My spouse will be doing the same. If we're both in nursing homes, we can sell our house(s). One mo...
by 1210sda
Fri Jun 12, 2015 9:17 am
Forum: Investing - Theory, News & General
Topic: Set It and Forget It Works!
Replies: 37
Views: 7937

Re: Set It and Forget It Works!

Any tips on how to implement automatic rebalance over multiple accounts? I am thinking along the lines of a python script that logs in and checks your balance periodically. Might be a good project to learn about scripting. Any interest in such a tool? I'm really interested in a tool that automatica...
by 1210sda
Tue Jun 09, 2015 9:37 am
Forum: Investing - Theory, News & General
Topic: Rebalancing
Replies: 41
Views: 4054

Re: Rebalancing

grayfox wrote:50/50 is in the middle. If the expected return of 50/50 met my needs, then it might be a reasonable choice.


Are you saying the expected return is the only consideration in setting AA? Does risk not factor into this?

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by 1210sda
Mon Jun 08, 2015 11:27 am
Forum: Personal Finance (Not Investing)
Topic: How to financially prepare to enjoy your best years?
Replies: 16
Views: 2685

Re: How to financially prepare to enjoy your best years?

In my retirement spreadsheet, I "front loaded" my targeted spending by having a 10% reduction at age 75 and an additional 10% reduction at age 85. I'll be 73 this year, so I'll come back and post on this thread in a couple of years to let you know how it turned out for me. :happy 1210 P.S...
by 1210sda
Mon Jun 08, 2015 9:30 am
Forum: Personal Finance (Not Investing)
Topic: How to financially prepare to enjoy your best years?
Replies: 16
Views: 2685

Re: How to financially prepare to enjoy your best years?

In my retirement spreadsheet, I "front loaded" my targeted spending by having a 10% reduction at age 75 and an additional 10% reduction at age 85. I'll be 73 this year, so I'll come back and post on this thread in a couple of years to let you know how it turned out for me. :happy 1210 P.S....
by 1210sda
Mon Jun 08, 2015 9:23 am
Forum: Investing - Help with Personal Investments
Topic: The final decision
Replies: 13
Views: 2329

Re: The final decision

indexonlyplease wrote: ( I love Vanguard but the fees to buy are high and Schwab funds are free to purchase using my PCRA.
Cliff


Could you please clarify. I wasn't aware that there were fees for buying at Vanguard.
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by 1210sda
Thu Jun 04, 2015 1:03 pm
Forum: Personal Finance (Not Investing)
Topic: Kitces - The Ratcheting Safe Withdrawal Rate
Replies: 51
Views: 5595

Re: Kitces - The Ratcheting Safe Withdrawal Rate

Bengen used year by year historical data for returns and inflation, not a single average figure. So, for example, he looked at what would have happened if retirement began in 1926 with a 4% withdrawal, and used the actual annual stock and bond returns and inflation over the next period of time. Rep...
by 1210sda
Thu Jun 04, 2015 11:19 am
Forum: Personal Finance (Not Investing)
Topic: Kitces - The Ratcheting Safe Withdrawal Rate
Replies: 51
Views: 5595

Re: Kitces - The Ratcheting Safe Withdrawal Rate

Bengen used a 10% equity return with 5.1% on 5 year treasury bonds vs. a 3% CPI in his 4% withdrawal rate study. I thought he used history (stocks, bonds and inflation) so that he could capture the "worst case" such as the Great Depression. I thought he had followed a similar approach to ...
by 1210sda
Thu Jun 04, 2015 8:07 am
Forum: Personal Finance (Not Investing)
Topic: Kitces - The Ratcheting Safe Withdrawal Rate
Replies: 51
Views: 5595

Re: Kitces - The Ratcheting Safe Withdrawal Rate

I enjoyed the article. Gives one food for thought. I have two concerns: 1. a 50% increase in the retirement portfolio is not an easy target, especially in the earlier years of retirement. 2. For many retirees, it means needing to use a financial planner annually or at least every few years. The seco...
by 1210sda
Tue Jun 02, 2015 5:27 pm
Forum: Personal Consumer Issues
Topic: Smart phone as a camera only ???
Replies: 17
Views: 1503

Re: Smart phone as a camera only ???

livesoft wrote:I guess one might need to read the manual and practice, too.


What.....read the manual? Are you kidding?? :-)

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by 1210sda
Tue Jun 02, 2015 5:17 pm
Forum: Personal Consumer Issues
Topic: Smart phone as a camera only ???
Replies: 17
Views: 1503

Re: Smart phone as a camera only ???

Thanks for all the responses. When it comes right down to it, what bothers me the most is the obnoxious delay between the time you snap the shutter, the light flashes and the picture is taken. When I see folks taking pictures with a smart phone, it seems to be more direct, no delay. Are there any ca...
by 1210sda
Tue Jun 02, 2015 1:09 pm
Forum: Personal Consumer Issues
Topic: Smart phone as a camera only ???
Replies: 17
Views: 1503

Smart phone as a camera only ???

In my travels I frequently avoid taking pictures because it can get too complicated for an old guy. Yet I see many older folks using their smart phones (or tablets) to take pictures. It seems so simple....all they do is point and shoot. Their is no pause for the camera to focus and the pictures turn...
by 1210sda
Tue Jun 02, 2015 8:03 am
Forum: Investing - Help with Personal Investments
Topic: keep advisor or do it myself
Replies: 68
Views: 6245

Re: keep advisor or do it myself

Winsome, Regarding your original question: "keep adviser or do it myself"........ It appears that after 62 post on this thread in almost 3 1/2 months you are still undecided on what to do. Based on that, IMHO, you should probably stay with an adviser instead of trying to do it yourself. 1210
by 1210sda
Mon Jun 01, 2015 11:50 am
Forum: Personal Finance (Not Investing)
Topic: Age to Take Social Security: The Ideal and the Reality
Replies: 31
Views: 5473

Age to Take Social Security: The Ideal and the Reality

Article in US News and World Report:

Taking Social Security at age 62: 48% of women and 42% of men (down from 60% women and 55% men in 2005)

Taking Social Security at age 70: 4% of women and 2% of men.

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by 1210sda
Sat May 30, 2015 7:47 am
Forum: Personal Finance (Not Investing)
Topic: Financial planning for your demise
Replies: 18
Views: 2886

Re: Financial planning for your demise

. I've also thought about going to Target Retirement Funds so asset allocation would be taken care of for her but I would take an unnecessary tax hit if I were to redeem my taxable Total Stock Market fund at this point to make that switch. Maybe you could have a letter of instructions to Vanguard s...
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: 1334

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: 1334

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: 715

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: 5527

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: 5254

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: 5254

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: 5254

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
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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: 5527

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.....
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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: 96
Views: 13538

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: 390

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.

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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: 96
Views: 13538

Re: NYT article on 4% retirement

Thank you for posting this.
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