Search found 4644 matches

Return to advanced search

Re: Pfau, Kitces, & Target-Date Fund glide paths

What they actually showed is that in a scenario where SPIA+stocks works out (and you don't spend too much out of the stocks, so their balance keeps rising), then you could replace SPIA with plain old bonds, so you instead have bonds+stocks, and the proportions are calculated based on what the residu...
by 555
Mon Apr 27, 2015 8:20 am
 
Forum: Investing - Help with Personal Investments
Topic: Pfau, Kitces, & Target-Date Fund glide paths
Replies: 7
Views: 517

Re: John Bogle's Don't Peek Challenge

selftalk wrote:I for one do not believe peeking at your portfolio is harmless. The temptation to think and change something is great and it will work against you as we are emotional beings.
This makes absolutely no sense to me. Peeking is merely peeking.
by 555
Mon Apr 27, 2015 8:02 am
 
Forum: Investing - Theory, News & General
Topic: John Bogle's Don't Peek Challenge
Replies: 144
Views: 12129

Re: 140% Stocks (or why the Kelly criterion is cool)

The interesting thing though is that if three players play alongside one another venturing 5%, 6% and 7%, the highest average log return goes to the 6% player as predicted, but the other two have a better result in a 2000 flip game substantially more often (say comparing results of several 100 diff...
by 555
Sun Apr 26, 2015 11:35 pm
 
Forum: Investing - Theory, News & General
Topic: 140% Stocks (or why the Kelly criterion is cool)
Replies: 67
Views: 2440

Re: Pfau, Kitces, & Target-Date Fund glide paths

I think "advocating" is too strong a word. It's just a calculation comparing scenarios, not a method. What happens is if someone happens to have more assets than they really need, and they happen to put the excess in stocks, then that portion of their portfolio will grow faster than the re...
by 555
Sun Apr 26, 2015 9:24 pm
 
Forum: Investing - Help with Personal Investments
Topic: Pfau, Kitces, & Target-Date Fund glide paths
Replies: 7
Views: 517

Re: John Bogle's Don't Peek Challenge

Merely peeking at your portfolio is harmless.

Saying you shouldn't peek at your portfolio is like saying you shouldn't peek while driving in case you're tempted to buy all the other cars.
by 555
Sun Apr 26, 2015 7:59 pm
 
Forum: Investing - Theory, News & General
Topic: John Bogle's Don't Peek Challenge
Replies: 144
Views: 12129

Re: Spendy spouse

Confucius say
Spendy spouse
Endy house
by 555
Sun Apr 26, 2015 5:00 pm
 
Forum: Personal Finance (Not Investing)
Topic: Spendy spouse
Replies: 58
Views: 3913

Re: 140% Stocks (or why the Kelly criterion is cool)

I think the OP's main point is that "Kelly criterion is cool" rather than how to apply it in the real world.
by 555
Sun Apr 26, 2015 2:21 pm
 
Forum: Investing - Theory, News & General
Topic: 140% Stocks (or why the Kelly criterion is cool)
Replies: 67
Views: 2440

Re: Poll Question: Vanguard vs Fidleity taxable brokerage

I think there is a flaw in the thinking that it is more convenient to have your personal acct with the same provider as your work acct. They are two totally separate accts, so it is a non-issue having same or different provider. Also, I think V funds are superior (consider international) and V is a ...
by 555
Sun Apr 26, 2015 2:17 pm
 
Forum: Investing - Help with Personal Investments
Topic: Poll Question: Vanguard vs Fidleity taxable brokerage
Replies: 22
Views: 814

Re: Spendy spouse

OP's thread with financial info. https://www.bogleheads.org/forum/viewtopic.php?f=1&t=163062 OP has high income, but also large debt, is in a HCOL, and wanting to buy a house and trying to save deposit. So there definitely is a financial issue. Try and make a budget, and structure it so that a l...
by 555
Sun Apr 26, 2015 11:30 am
 
Forum: Personal Finance (Not Investing)
Topic: Spendy spouse
Replies: 58
Views: 3913

Re: 140% Stocks (or why the Kelly criterion is cool)

On first glance, doesn't this type of "strategy" ignore the risk, however small or large, of going totally belly up? In theory , this absolutely does try to avoid that. When trying to maximize geometric mean, multiplying by zero is the last thing you want to do. In practice , this risk is...
by 555
Sun Apr 26, 2015 11:11 am
 
Forum: Investing - Theory, News & General
Topic: 140% Stocks (or why the Kelly criterion is cool)
Replies: 67
Views: 2440

Re: Kitces on Asset Location

If the IRA is presumed to be taxed at 25% upon withdrawal, then you should consider this when figuring asset allocation, and you should try to convert all figures to post -tax (spendable) dollars. For example, for a 50:50 allocation you could compare, say $400k stocks in Trad 401k/IRA ($300k post-ta...
by 555
Sun Apr 26, 2015 10:26 am
 
Forum: Investing - Theory, News & General
Topic: Kitces on Asset Location
Replies: 20
Views: 1487

Re: Your experiences of high inflation periods

Real median income: http://www.multpl.com/us-median-real-income Seems fairly stable to me, even during the years of 10%+ inflation. Also, note that the drop after 1980 happened because of the second oil crisis. Oil prices spiked in late 1979 and stayed high for the following years. Production fell,...
by 555
Sun Apr 26, 2015 12:35 am
 
Forum: Personal Finance (Not Investing)
Topic: Your experiences of high inflation periods
Replies: 58
Views: 2414

Re: Minimize RMDs: Bond funds in 401K and stock funds in Rot

It's been discussed various times before, and yes, it makes sense for this RMD reason.
by 555
Sat Apr 25, 2015 9:43 pm
 
Forum: Investing - Help with Personal Investments
Topic: Minimize RMDs: Bond funds in 401K and stock funds in Roth?
Replies: 6
Views: 513

Re: Poll: Late-starters, check in with portfolio status

In mid-30s I'd just paid off my mortgage (and then my old car died, so I had to borrow at low interest to get a new one), and had no retirement savings except for compulsory 401a. It wasn't too bad a choice as the mortgage interest was >7%, and the stock market had run up, then crashed. Then I start...
by 555
Sat Apr 25, 2015 5:03 pm
 
Forum: Personal Finance (Not Investing)
Topic: Poll: Late-starters, check in with portfolio status
Replies: 4
Views: 654

Re: Bond allocation-retire in 2 yrs

but it's prudent to keep a few/several years spending in cash/bonds I agree with keeping at least several years worth of fixed expenses in less volatile assets, though. Sometimes stocks do decline and stay down for a long time. If 10 years worth of fixed expenses is 13% of your assets, you're not l...
by 555
Sat Apr 25, 2015 3:54 pm
 
Forum: Investing - Help with Personal Investments
Topic: Bond allocation-retire in 2 yrs
Replies: 14
Views: 1088

Re: Transfer to Vanguard shows "margin" ...

Sometimes I log into a retirement account and it says:
Balance $0.00

I don't worry. It's always a temporary glitch.
by 555
Sat Apr 25, 2015 9:55 am
 
Forum: Investing - Help with Personal Investments
Topic: Transfer to Vanguard shows "margin" ...
Replies: 19
Views: 1325

Re: Poll: Effective average Adjusted Livesoft tax rate?

livesoft wrote:^ Easy: Donate significant amounts to charity. One's itemized deductions never go to zero.
Taxes and charity are basically the same thing.
by 555
Sat Apr 25, 2015 9:27 am
 
Forum: Personal Finance (Not Investing)
Topic: Poll: Effective average Adjusted Livesoft tax rate?
Replies: 67
Views: 4678

Re: Bond allocation-retire in 2 yrs

You're all set. You can do what you want. 100% stock would be okay, but it's prudent to keep a few/several years spending in cash/bonds.
by 555
Sat Apr 25, 2015 9:19 am
 
Forum: Investing - Help with Personal Investments
Topic: Bond allocation-retire in 2 yrs
Replies: 14
Views: 1088

Re: [How do I lead a discussion about saving for retirement?

Unfortunately retirement savers credit is non-refundable, so a lot of people get no benefit from it.
by 555
Sat Apr 25, 2015 12:26 am
 
Forum: Personal Finance (Not Investing)
Topic: [How do I lead a discussion about saving for retirement?]
Replies: 31
Views: 2619

Re: dollar cost averaging

555, 1. You have $12,000 in cash and choose to invest $1,000 per month for the next 12 months, while holding back your available cash. 2. You have a job and a salary that allows you to invest $1,000 per month by payroll deduction each month for the next year (as you earn your salary). You seem to t...
by 555
Fri Apr 24, 2015 11:08 pm
 
Forum: Investing - Help with Personal Investments
Topic: dollar cost averaging
Replies: 17
Views: 881

Re: Bond allocation-retire in 2 yrs

What does (Total Assets) divided by (Annual Spending) equal? What will that ratio be if/when some income streams such as SS/Pension are available. If your assets are >50 times annual spending, then 100% stock may be okay. (It may be more prudent to have 5 or 10 years spending in safer assets to help...
by 555
Fri Apr 24, 2015 10:41 pm
 
Forum: Investing - Help with Personal Investments
Topic: Bond allocation-retire in 2 yrs
Replies: 14
Views: 1088

Re: 1/3 of those SAVING for retirement have less than $1000

I can remember back in the mid 80's in my early twenties and opened my first IRA, one of my buddies was befuddled on why I would worry about retirement at such a young age. He is currently a teacher with a pension that is under 70% funded currently. Are you kidding? With a pension they are laughing...
by 555
Fri Apr 24, 2015 10:14 pm
 
Forum: Personal Finance (Not Investing)
Topic: [How do I lead a discussion about saving for retirement?]
Replies: 31
Views: 2619

Re: dollar cost averaging

What is the ideal duration for dollar cost averaging? Every day, month or quarter. Every paycheck. That's not dollar cost averaging. That's periodic investing. That's like saying water is not wet! :confused No, DCA means you are holding back cash. Periodic investing means you are investing cash as ...
by 555
Fri Apr 24, 2015 9:38 pm
 
Forum: Investing - Help with Personal Investments
Topic: dollar cost averaging
Replies: 17
Views: 881

Re: dollar cost averaging

gkaplan wrote:
555 wrote:
rahulkhot wrote:What is the ideal duration for dollar cost averaging? Every day, month or quarter.
Every paycheck.
That's not dollar cost averaging. That's periodic investing.
That's like saying water is not wet! :confused
by 555
Fri Apr 24, 2015 9:00 pm
 
Forum: Investing - Help with Personal Investments
Topic: dollar cost averaging
Replies: 17
Views: 881

Re: dollar cost averaging

rahulkhot wrote:What is the ideal duration for dollar cost averaging? Every day, month or quarter.
Every paycheck.
by 555
Fri Apr 24, 2015 8:49 pm
 
Forum: Investing - Help with Personal Investments
Topic: dollar cost averaging
Replies: 17
Views: 881

As Cognitterment Slips, Financial Skills Often the First to

Here is an interesting New York Times article about how the ability to competently handle financial matters is one of the first things older adults lose if they develop cognitive issues: http://www.nytimes.com/2015/04/25/your-money/as-cognitivity-slips-financial-skills-are-often-the-first-to-go.htm...
by 555
Fri Apr 24, 2015 8:43 pm
 
Forum: Personal Finance (Not Investing)
Topic: As Cognition Slips, Financial Skills Often the First to Go
Replies: 22
Views: 1591

Re: What is too long to stay the course?

Let's vote!
What's more annoying?
[_] The cherry picked time interval.
[_] The cherry picked mutual fund.
by 555
Fri Apr 24, 2015 7:01 pm
 
Forum: Investing - Theory, News & General
Topic: What is too long to stay the course?
Replies: 50
Views: 3284

Re: What is too long to stay the course?

QQQ is for landlubbers! :oops:
by 555
Fri Apr 24, 2015 4:57 pm
 
Forum: Investing - Theory, News & General
Topic: What is too long to stay the course?
Replies: 50
Views: 3284

Re: As Cogntivity Slips, Financial Skills Often the First to

...no, there is no such word as "cognitivity." Yet. This is weird, but just a few seconds after I read nisiprius' post, I re-clicked on the nytimes link, and the headline had been changed from "As Cognitivity Slips..." to "As Cognition Slips..." Apparently the headline...
by 555
Fri Apr 24, 2015 3:47 pm
 
Forum: Personal Finance (Not Investing)
Topic: As Cognition Slips, Financial Skills Often the First to Go
Replies: 22
Views: 1591

Re: what should MIL do with "windfall"?

It sounds like you are trying to close the barn door after the horse has bolted.
by 555
Fri Apr 24, 2015 2:37 pm
 
Forum: Personal Finance (Not Investing)
Topic: what should MIL do with "windfall"?
Replies: 12
Views: 1272

Re: Why does FSGDX have such a low yield compared to VTIAX?

I see it trails its index by about 30bp per year.
by 555
Fri Apr 24, 2015 1:18 pm
 
Forum: Investing - Theory, News & General
Topic: Why does FSGDX have such a low yield compared to VTIAX?
Replies: 23
Views: 3788

Re: Why does FSGDX have such a low yield compared to VTIAX?

I think FSGDX has a lower yield and lower performance because Fidelity pays itself higher brokerage fees or higher prices for buys and lower prices for sales when it trades for this fund. These fees may not end up reflected in the fund expense ratio. Are you saying they're skimming off this fund? T...
by 555
Fri Apr 24, 2015 1:00 pm
 
Forum: Investing - Theory, News & General
Topic: Why does FSGDX have such a low yield compared to VTIAX?
Replies: 23
Views: 3788

Re: Do you Bogleheads really follow the 3-4% SWR rule?

But do you guys agree that your portfolio has to roughly average 4% real over a 30-35 year withdrawal period? As a rough ballpark figure of what you could typically withdraw on average, sure. But it's fairly obvious. As even rougher ballpark figures 1/30=3.33% 1/35=2.86% and positive real returns a...
by 555
Fri Apr 24, 2015 12:30 pm
 
Forum: Investing - Theory, News & General
Topic: Do you Bogleheads really follow the 3-4% SWR rule?
Replies: 47
Views: 3765

Re: Do you Bogleheads really follow the 3-4% SWR rule?

"You should withdraw 4% of your portfolio in the first year of retirement and adjust thereafter for inflation, regardless of what happens in the market"
said nobody ever.
by 555
Fri Apr 24, 2015 11:25 am
 
Forum: Investing - Theory, News & General
Topic: Do you Bogleheads really follow the 3-4% SWR rule?
Replies: 47
Views: 3765

Re: Do you Bogleheads really follow the 3-4% SWR rule?

So, as I understand the SWR rule, you withdraw some nominal amount, 3 or 4% in the first year of retirement and adjust thereafter for inflation, regardless of what happens in the market. But, do you Bogleheads who are doing this actually stick to it, year in and year out? Or, when the stock market ...
by 555
Thu Apr 23, 2015 5:47 pm
 
Forum: Investing - Theory, News & General
Topic: Do you Bogleheads really follow the 3-4% SWR rule?
Replies: 47
Views: 3765

Re: Investing in a fund every month

If you're able to pull together $1,000, you could open an account with Vanguard Target Retirement 2025 Fund (VTTVX) (or any other VTRF fund). I would add, conversely, that if you're not able to pull together $1,000, then don't invest. There's just no point. You probably need a few $k sitting around...
by 555
Mon Apr 20, 2015 12:24 am
 
Forum: Investing - Help with Personal Investments
Topic: Investing in a fund every month
Replies: 26
Views: 2569

Re: Collecting: A Hobby First, Investment Second

Every collector I know has a personal interest in the items. They blog about them, spend to attend conferences with other collectors, and enjoy the community that exists for many collection categories. Some also collect because they wish to preserve the items rather than see them in a landfill. It ...
by 555
Sun Apr 19, 2015 11:14 pm
 
Forum: Investing - Theory, News & General
Topic: Collecting: A Hobby First, Investment Second
Replies: 33
Views: 2868

Re: Need[ed] to stop an ACH transfer [that once was] tomorro

Thanks for the explanation. That's interesting. I think people really were mystified how a loan payment could literally be money down the drain, but you've explained how that can really happen.
by 555
Sun Apr 19, 2015 10:55 pm
 
Forum: Personal Finance (Not Investing)
Topic: Need[ed] to stop an ACH transfer [that once was] tomorrow
Replies: 11
Views: 2523

Re: Which Credit Card w/ 5% Cash Back Rotating Category is B

amitb00 wrote:I did not know SM card gets 5% at Walmart. I will try at mine and report back
Please do. I'd be curious to hear if this really works. I wonder where the 5% comes from.
by 555
Sat Apr 18, 2015 10:05 pm
 
Forum: Personal Finance (Not Investing)
Topic: Which Credit Card w/ 5% Cash Back Rotating Category is Best?
Replies: 21
Views: 2366

Re: John Bogle's Don't Peek Challenge

Benartzi and Thaler find that investor shown yearly stock returns are more risk averse than investors shown only long-term returns. Providing plan participants with short-term rates of return on the different investment funds induces “myopic loss aversion” (Benartzi and Thaler, 1995). Loss aversion...
by 555
Sat Apr 18, 2015 6:52 pm
 
Forum: Investing - Theory, News & General
Topic: John Bogle's Don't Peek Challenge
Replies: 144
Views: 12129

Re: Taking stock at midlife financially

You're doing fine obviously. But how do you get to $1.5M saving $10k/yr?
by 555
Sat Apr 18, 2015 5:09 pm
 
Forum: Investing - Help with Personal Investments
Topic: Taking stock at midlife financially
Replies: 20
Views: 3407

Re: Which Credit Card w/ 5% Cash Back Rotating Category is B

What exactly is a "category", and how does it all work out in practice?

How can I use one of these cards to get 5% off at Walmart?
by 555
Sat Apr 18, 2015 4:54 pm
 
Forum: Personal Finance (Not Investing)
Topic: Which Credit Card w/ 5% Cash Back Rotating Category is Best?
Replies: 21
Views: 2366

Re: John Bogle's Don't Peek Challenge

The anchoring effect happens even when people know about it and are told that they will be paid money if they can avoid it . You can't reason your way out of a cognitive bias, but what you can do is hack your behavior. Not looking at your portfolio is one way to do that. Arguments like that bring t...
by 555
Sat Apr 18, 2015 1:13 pm
 
Forum: Investing - Theory, News & General
Topic: John Bogle's Don't Peek Challenge
Replies: 144
Views: 12129

Re: long term capital gain tax vs. roth conversions

bobk100 wrote:I would like to convert as much of my traditional IRA to a Roth IRA as possible because at age 70 the RMD plus my SS benefit will put me in the 28% tax bracket.
I don't see what would be pushing you up into that tax bracket.
bobk100 wrote: Am I better off from a tax perspective focusing on maximizing the 0% tax rate or doing partial Roth conversions at 15% tax rate as a means to keep my future tax rate lower when I have to take RMDs?
That depends on some variables we don't have.
by 555
Sat Apr 18, 2015 1:16 am
 
Forum: Investing - Help with Personal Investments
Topic: long term capital gain tax vs. roth conversions
Replies: 41
Views: 2345

Re: John Bogle's Don't Peek Challenge

I was really challenging the weakness of people like myself and newer investors who overreact when the market is really up or really down. So if you don't peek, you will do nothing. Information is good. It should assist you in making better decisions. Why does information make you make worse decisi...
by 555
Fri Apr 17, 2015 10:59 pm
 
Forum: Investing - Theory, News & General
Topic: John Bogle's Don't Peek Challenge
Replies: 144
Views: 12129

Re: John Bogle's Don't Peek Challenge

I was really challenging the weakness of people like myself and newer investors who overreact when the market is really up or really down. So if you don't peek, you will do nothing. Information is good. It should assist you in making better decisions. Why does information make you make worse decisi...
by 555
Fri Apr 17, 2015 10:33 pm
 
Forum: Investing - Theory, News & General
Topic: John Bogle's Don't Peek Challenge
Replies: 144
Views: 12129

Re: Would you buy 1.5 M house without AC?

In many parts of the country you could get about 5 or 10 houses with HVAC for less than $1.5M.
by 555
Fri Apr 17, 2015 3:27 am
 
Forum: Personal Finance (Not Investing)
Topic: Would you buy a house without AC?
Replies: 60
Views: 4626

Re: Collecting: A Hobby First, Investment Second

DJB wrote:I respectfully disagree with this. I've invested my entire nest egg in Beanie Babies and as soon as the market recovers, it will be smooth sailing into retirement.
And if not, you can use them as soft comfortable furniture in your shelter under a bridge. :wink:
by 555
Fri Apr 17, 2015 1:00 am
 
Forum: Investing - Theory, News & General
Topic: Collecting: A Hobby First, Investment Second
Replies: 33
Views: 2868

Re: Would you buy 1.5 M house without AC?

If your concerned about raising funds to pay for an AC system, you could always sell about a square foot of land to your neighbor. :happy
by 555
Thu Apr 16, 2015 11:19 pm
 
Forum: Personal Finance (Not Investing)
Topic: Would you buy a house without AC?
Replies: 60
Views: 4626
Next

Return to advanced search