Bogleheads.org

I suppose my question was, what are the various mechanisms by which rising bond interest rates could push stocks higher or lower?

I suppose it could be a topic for a separate thread.

If your brother gives her this money ($25k/yr) she'll probably buy a new convertible every year.

No amount of shovelling can fill a bottomless pit.

tadamsmar wrote:"Random walks don't provide a reblancing bonus."

It's off-topic, but your statement is absolutely false. Random walks are the classic source of a reblancing bonus.

Tom_T wrote:"It's interesting that the people fearful of bonds don't talk about what might happen to equity prices if interest rates soar. They are only thinking about bonds."

What will happen to equity prices if interest rates soar?

mhc wrote:"The good thing about the foreign tax credit is that it prevents double taxation."

That's not my experience. It would be more accurate to say it changes 2X taxation to 1.6X taxation. You may only get a slight discount from double taxation.

This is clearly a scam that the OP is a perfect target for.

"Exactly. Why does anyone think that spending in retirement is a "fire and forget" thing?" No one actually thinks that. "With all the SWR threads, they had me fooled." You can't possibly be serious. I challenge you to find one single well informed person who thinks tha...

umfundi wrote:"Exactly. Why does anyone think that spending in retirement is a "fire and forget" thing?"

No one actually thinks that.

"BTW the scientists calculated that the chances of a meteor and an asteroid both coming so close to Earth on the same day... yesterday... was 1 in 100 million." "It's is nonsense. Meteors bombard the earth on a daily basis." I can easily see how 1 in 100,000,000 is a fair estima...

I optimize my taxes by putting $X in TradIRA and the rest in RothIRA.

"I have posted some updated back test reports on Value Averaging on my web site http://www.vainvestmentsoftware.com I also have some model portfolios that you can look at to see how you can structure a portfolio using VA. Hopefully this will clear up a lot of misconceptions about VA that I rea...

abuss368 wrote:"What happened to the emerging markets bond fund that was to be originally offered with this one?"

It's still emerging.

I can easily see how 1 in 100,000,000 is a fair estimate of the probability of an event of this ilk.

If only the dinosaurs had insurance ....

"I think this topic is a bit silly because I think people have different definitions of income and savings. Are the following income, savings, or both? 401k company match Pension accumulation unrealized capital gains realized capital gains reinvested dividends/interest IRA, HSA, 401k contribut...

crowd79 wrote:"No worries, you're doing far better compared to the sad truth of the majority in this country:

http://www.dailyfinance.com/2012/10/15/17-frightening-facts-about-retirement-savings-in-/

Feel better? "

I'm now less concerned about inflation.

The longer time scale means more risk for the insurance company, which means more expense for you.

Just registered with incomesolutions.com, and checked. A 65 year old can get an Inflation Adjusted Annuity with annual payment starting at 4.5% of principal for a male (4.2% for a female), and increasing with inflation. Perhaps better quotes can be found. So 4% (inflation adjusted) is still easy, e...

Just registered with incomesolutions.com, and checked. A 65 year old can get an Inflation Adjusted Annuity with annual payment starting at 4.5% of principal for a male (4.2% for a female), and increasing with inflation. Perhaps better quotes can be found. So 4% (inflation adjusted) is still easy, ev...

The fundamental principle is that you can spend your principal.

There are two very different types of annuities being discussed here. The "DIY annuity" articles are talking about are mimicking Equity Indexed Annuities, with your own combination of stocks, bonds, CDs, etc. . The upshot is, that you can do it. This shows that there's no point in buying s...

OP "Have any of you had the experience or have a point of view on creating your own annuity from your portfolio's stock dividends, bonds, CDs, etc?" 1st reply. "The main part of an annuity is the mortality credits, an insurance company can provide this thru many people.How could one p...

I got my refund last week.

4% is fine. More if you buy SPIAs.

@ YDNAL
What exactly is your point?
Are you actually disagreeing with anything I said? If so, what part?

What use is SEC yield if the fund does not hold the bonds to maturity? "You would never know, so speculating that a fund doesn't hold to maturity is just what is it is. SEC yield, based on last 30 days data, is as good as you can get to project future income (yield)." You just took a part...

What use is SEC yield if the fund does not hold the bonds to maturity? For example an intermediate fund will sell bonds when their maturity gets too short. Maybe SEC yield systematically underestimates the return of such a fund. Is that right?

leo383 wrote:"30 years from now, there will be investors looking at us and asking why we didn't see the obvious."

Could you please be more sepcific about what will be obvious 30 years from now?

"Yes, if you actually have the means to do so, I would consider buying long term treasuries in 1981 to be a wise investment move. The biggest risk would be for investors not yet born in 1981, who might butterfly effect themselves out of existence." Right. This is more of a concern than &q...

I don't get this "reinvestment risk". When you get the coupon payments you just reinvest them in more 1981 treasuries. 8-) "Yes, but if interest rates have fallen the 1981 bonds are now selling at a premium, above the $1,000 face value you bought them at the auction in 1981. So the y...

I don't get this "reinvestment risk". When you get the coupon payments you just reinvest them in more 1981 treasuries.

"Not sure how everyone calculates their percentages but I take the total amount saved (pre and post tax) and divide it by our W-2's. Calculating it this way gave us about 42% savings rate for 2012." "Which Box of the W2 do you use? Box 1 usually excludes pre tax 401k contributions an...

555 wrote:I've E-filed Fed and State with TaxACT.

And now I've got my refund (Fed).

"Are potential investors in this fund expecting higher returns? Hate to disappoint you, but this fund isn't going to yield any more than the Vanguard Total Bond Fund, and may yield less due to higher fees and hedging costs ." "Those were two concerns I had. While talking about how ni...

desertbandit442 wrote:"For me, it is living on income streams--pension, ss, interest, dividends and the like; without have to touch principal of my "nest egg." "

If you don't need to touch your principal, then you have more than you need.

dewey wrote:"Some unexpected help is on the way in reducing our junk mail. They're going to deliver it less often."

Great. Now I'll need to get a 20% bigger mailbox.

See if your assets could buy an inflation indexed immediate annuity that would give you enough income.

Mark my words, five to ten years from now, Vanguard will increase the international bond portion from 20% to 30% in their TR fund..." No. Actually what they'll do is to put 10% of their bond allocation into their emerging-markets government-bond (dollar denominated) index fund to bring their i...

Clearly_Irrational wrote:"This is why the market tends to be a levy flight instead of a random walk."

What is a levy flight?

Browser wrote: SAMUELSON’S DICTUM AND THE STOCK MARKET

Please link to an abstract, not the whole paper. That should be standard practice.

What about the Emerging Market Dollar Denominated Bond Fund that they were talking about (and will it also be in the funds of funds)?

Why are you contributing to Roth IRA instead of a Traditional IRA?

"Wondering if anyone was currently taking advantage of lowest rates ever, and refinancing mortgage, taking money out, and investing it." "No, but this strikes me as a no brainer: http://crr.bc.edu/wp-content/uploads/2012/05/IB_12-10-508.pdf Take out a $25,000 home equity loan at 3.5%...

"So if I payoff my mortgage, should I change my asset allocation to accommodate?" This kind of question is what my earlier post is about. All these percentages depend heavily on choice of what to include in the numerator and denominator. People are talking about the signifance of a mortga...

"Is this relevant? http://www.irs.gov/pub/irs-utl/n-11-56.pdf To provide consistency between revoking a taxpayer’s average basis election and changing from a broker’s default average basis method, the proposed regulations are expected to provide that, when a taxpayer changes from a broker’s de...

NEWS FLASH!!! SPIAs are somewhat similar to Social Security and pensions. Who knew?

If you take a cupcake and put a cherry on top, is it still a cupcake?

"Bobcat2 wrote" "One more point that I find troubling about this study is the tremendous amount of sequence of return risk there is in this retirement income strategy. If the investment portfolio is 100% stocks and the first and second years of retirement see a 50% or so drop in the ...

What are the rules for the timing of when you withdraw from a 529 for qualified expenses?

All the OP's 529 withdrawals seem to be for qualified expenses, so it seems to be a matter of timing. How does this work?