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Re: "TIPS. Love them or leave them?"

And the very risk that they purport to defend against--an unexpected uptick in inflation--is nowhere on the horizon. Fancy that! You'd think the least an unexpected threat could do would be to let us have a bit of warning. You have to cut her a bit of a break. She had a 200-word article that an edi...
by Aptenodytes
Thu Mar 26, 2015 4:26 pm
 
Forum: Investing - Theory, News & General
Topic: "TIPS. Love them or leave them?"
Replies: 9
Views: 1172

Re: "TIPS. Love them or leave them?"

It seems like sensible guidance. The case for owning some TIPS comes down to them being the only bond-like product with guaranteed inflation protection, and the risk of unexpected inflation, however low, is not zero. What she said about how big a TIPS allocation to aim for is also sensible, if vague...
by Aptenodytes
Thu Mar 26, 2015 3:48 pm
 
Forum: Investing - Theory, News & General
Topic: "TIPS. Love them or leave them?"
Replies: 9
Views: 1172

Re: Huge Tax Bill !!

I don't get what the big deal is. You jumped a tax bracket. There is no $350K tax bracket for married-filing-jointly, but perhaps you mean you jumped from the 28% to the 33% tax bracket. That's just 5 percentage points, and it only applies to the amount above $226,850. Or perhaps you mean you jumped...
by Aptenodytes
Thu Mar 26, 2015 9:21 am
 
Forum: Personal Finance (Not Investing)
Topic: Huge Tax Bill !!
Replies: 10
Views: 1761

Re: VanG Intermediate Term Bond Market Question

You choose among different terms, between corporate and Treasury, and between inflation protected and not. Total Bond is for people who are agnostic on the first two and prefer not to protect against inflation. If you are agnostic on the first two and prefer to protect against inflation you can add ...
by Aptenodytes
Tue Mar 24, 2015 7:47 am
 
Forum: Investing - Help with Personal Investments
Topic: VanG Intermediate Term Bond Market Question
Replies: 20
Views: 1793

Re: Investing in the medium term say 15 years. Same princip

These terms are used very loosely. If you want to be precise about your strategy you need to be precise about your meaning. " investing in the medium term (10-15yrs) rather than retirement?" is ambiguous. First of all, one can retire in 10-15 years so there's nothing mutually exclusive abo...
by Aptenodytes
Mon Mar 23, 2015 8:58 am
 
Forum: Investing - Help with Personal Investments
Topic: Investing in the medium term say 15 years. Same principles?
Replies: 7
Views: 815

Re: "Small-Cap Indexing: Popularity Can Be a Pain"

Guys, the article concerns the perils of the Russell 2000 as a benchmark as compared to alternative small-cap indexes, e.g. the one that Vanguard uses. The merits of this case don't depend on the existence of the small cap premium or the accuracy of data from the 1920s. The author doesn't help his c...
by Aptenodytes
Mon Mar 23, 2015 4:22 am
 
Forum: Investing - Theory, News & General
Topic: "Small-Cap Indexing: Popularity Can Be a Pain"
Replies: 14
Views: 2102

Re: "Small-Cap Indexing: Popularity Can Be a Pain"

Thanks for pointing out the article, Taylor. Interesting. However, I have to say that article could have used a good editor. The piece could have been condensed by 2/3 quite easily. Here's my shorter version. The Russell 2000 index is a problematic benchmark for small-cap investing because its popul...
by Aptenodytes
Sun Mar 22, 2015 3:23 pm
 
Forum: Investing - Theory, News & General
Topic: "Small-Cap Indexing: Popularity Can Be a Pain"
Replies: 14
Views: 2102

Re: Traveling WiFi

Part of the answer depends on how many devices would be using the signal at once, and how much bandwidth they will be using. If it is one or two devices, doing low-bandwidth things like email and web surfing, I would just tether via your phone. If it is more devices,or you are doing higher bandwidth...
by Aptenodytes
Sun Mar 22, 2015 3:00 pm
 
Forum: Personal Consumer Issues
Topic: Traveling WiFi
Replies: 17
Views: 1969

Re: Which vanguard fund should I select for a small rollover

Just roll it into the 3 fund asset allocation you have already chosen. I can't because the 3 fund allocation I currently have is after tax. So this will be the only tax-advantaged account you have? In that case, put all of it in your bond fund and lower your after-tax bond holding by the same amount.
by Aptenodytes
Sun Mar 22, 2015 12:35 pm
 
Forum: Investing - Help with Personal Investments
Topic: Which vanguard fund should I select for a small rollover?
Replies: 10
Views: 413

Re: The one area I disagree with Jack

The question is not that I am applying a rigid rule as it is patently obvious that I am not. It is Mr. Bogle who has stated and stood by such a rule, and the OP that started this thread is the one who is asking how much agreement there is here with this rule. If one position on that is that the rul...
by Aptenodytes
Sun Mar 22, 2015 10:54 am
 
Forum: Investing - Theory, News & General
Topic: The one area I disagree with Jack
Replies: 93
Views: 7252

Re: The one area I disagree with Jack

Framed as a strict mathematical rule where you end up with this rule ignores your circumstances as a whole and takes account of your income circumstances only in one rigid way. I don't think there is any escape from this. I guess this is true if you believe that all people should calculate their AA...
by Aptenodytes
Sun Mar 22, 2015 10:23 am
 
Forum: Investing - Theory, News & General
Topic: The one area I disagree with Jack
Replies: 93
Views: 7252

Re: The one area I disagree with Jack

So if you want to rethink your position and find a way to agree with him, simply translate his words a bit: Once you are in retirement, the greater your SS income is, the lower your bond percentage needs to be. It is functionally the same statement, just framed differently. The alternative advice t...
by Aptenodytes
Sun Mar 22, 2015 9:51 am
 
Forum: Investing - Theory, News & General
Topic: The one area I disagree with Jack
Replies: 93
Views: 7252

Re: The one area I disagree with Jack

You say you disagree with him, but you really don't. He says that your guaranteed income stream in retirement affects your risk profile and therefore affects how you invest. There's no way whatsoever to disagree with that. It is mathematically the same as saying that your spending stream affects how...
by Aptenodytes
Sun Mar 22, 2015 7:35 am
 
Forum: Investing - Theory, News & General
Topic: The one area I disagree with Jack
Replies: 93
Views: 7252

Re: Opened an account Vanguard yesterday, now having cold fe

See the problem is, my husband retired 23 years ago from Verizon and took a lump sum. He did an IRA with Smith Barney and he has 10% left now....most of it gone in 2008. Granted we have taken an $800.00 check from it for a number of years, but we have been very leary since. Our investments have alw...
by Aptenodytes
Sat Mar 21, 2015 12:58 pm
 
Forum: Investing - Help with Personal Investments
Topic: Opened an account Vanguard yesterday, now having cold feet
Replies: 60
Views: 3578

Re: Opened an account Vanguard yesterday, now having cold fe

There is never any reason to panic about this stuff. The only reason to read people like James Rickards is to indulge in panic. Therefore you have to choose.

If you like boglehead style investing, don't read Rickards or people like him.

If you like to panic, don't invest in the boglehead manner.
by Aptenodytes
Sat Mar 21, 2015 12:36 pm
 
Forum: Investing - Help with Personal Investments
Topic: Opened an account Vanguard yesterday, now having cold feet
Replies: 60
Views: 3578

Re: Restaurant tipping

I definitely tip based on service and if I like the place even if they might be having a rough night. I'm still in that 10% range though mostly and only moved to around 15% at places I really like. I probably would tip 10% if my wife hadn't influenced me over the years. I definitely am not cheap or...
by Aptenodytes
Sat Mar 21, 2015 10:49 am
 
Forum: Personal Consumer Issues
Topic: Restaurant tipping
Replies: 176
Views: 9680

Re: Timing for taking RMDs

[edit: what I wrote below was premised on your not needing the RMD for spending, but I misread your premise which says you will need to spend the money in one year. For me one year and today are functionally the same. Therefore I'd amend the recommendation to have you just withdraw every month and d...
by Aptenodytes
Sat Mar 21, 2015 10:42 am
 
Forum: Personal Finance (Not Investing)
Topic: Timing for taking RMDs
Replies: 18
Views: 1616

Re: Why I don't file early

You can have the best of both worlds :( and file early and then file the amended return after the late 1099s etc come in. That's what I'm doing this year.
by Aptenodytes
Sat Mar 21, 2015 10:21 am
 
Forum: Personal Finance (Not Investing)
Topic: Why I don't file early
Replies: 35
Views: 3340

Re: Restaurant tipping

The baseline percentage is creeping up, so you have to choose where you want to be on the curve. 30 years ago it seemed like the default was something like 10-15%, then after a while 15% became the baseline and 10% was for the elderly and meanspirited. I now tip 20% as my baseline, veering a bit onc...
by Aptenodytes
Sat Mar 21, 2015 10:15 am
 
Forum: Personal Consumer Issues
Topic: Restaurant tipping
Replies: 176
Views: 9680

Re: How mutual fund distribution affects performance?

If you have doubts about the return I'd suggest looking at the company's web site for the fund. They can be trusted to calculate it correctly. It doesn't really matter what the Web sites say though. You earn what you earn.
by Aptenodytes
Fri Mar 20, 2015 6:04 pm
 
Forum: Investing - Theory, News & General
Topic: How mutual fund distribution affects performance?
Replies: 6
Views: 714

Re: Tankless Hit Water Heaters

Only inn USA does one use a hw tank. Everyone else in the world uses tankless. This is not even remotely close to accurate. I've lived in Australia and Vietnam and never seen a tankless water heater in either country. I've lived in three countries in the past 7 years and in all 3 hot water tanks we...
by Aptenodytes
Fri Mar 20, 2015 7:29 am
 
Forum: Personal Consumer Issues
Topic: Tankless Hot Water Heaters
Replies: 29
Views: 2485

Re: Anyone concerned about their bond holdings?

I know the catechism like everyone else, and can say, like Pierre, "I don't care." I will admit, however, to thinking about moving a greater fraction of my non-stock holdings to the TIAA Traditional Annuity. Such thoughts are driven more by the level of current bond yields rather than any ...
by Aptenodytes
Fri Mar 20, 2015 7:28 am
 
Forum: Investing - Theory, News & General
Topic: Anyone concerned about their bond holdings?
Replies: 58
Views: 5549

Re: Tankless Hot Water Heaters

I'm curious if any proponents have an opinion on a hybrid approach, such as a tank-heater for most of the house but a small electric tankless dedicated to the kitchen. Or if you go tankless, to go with two of them instead of one. When we expanded our house two years ago the kitchen ended up farther ...
by Aptenodytes
Fri Mar 20, 2015 7:11 am
 
Forum: Personal Consumer Issues
Topic: Tankless Hot Water Heaters
Replies: 29
Views: 2485

Re: An inspiring message for Bogleheads

When I think about where I was when I finally hit $62,000 in my retirement savings, I am chagrined.
by Aptenodytes
Fri Mar 20, 2015 7:06 am
 
Forum: Investing - Theory, News & General
Topic: An inspiring message for Bogleheads
Replies: 56
Views: 4168

Re: how often do you check performance?

I calculate performance once a month. Probably for no good reason.
I compare it to other portfolios once a year, when the forum elicits end-of-year performance reports. Also little point to it.
I've never found any other standard portfolio worth comparing to mine. Mine's too different.
by Aptenodytes
Tue Mar 17, 2015 3:28 pm
 
Forum: Investing - Help with Personal Investments
Topic: how often do you check performance?
Replies: 50
Views: 2622

Re: Should I change Asset Allocation to a more conservative

The OP's thought process doesn't smell like market timing to me. Ram is looking at spending needs, savings rates, and plausible returns between now and retirement. If one can meet needs with lower returns, then logically it makes sense to consider dialing down the risk. This kind of thought process ...
by Aptenodytes
Mon Mar 16, 2015 1:00 pm
 
Forum: Personal Finance (Not Investing)
Topic: Should I change Asset Allocation to a more conservative mix
Replies: 20
Views: 1929

Re: Retired - When to Sell to Generate Cash

How in the world do you know if the market is up or down I don't really understand your question. I wasn't predicting the market status just saying when the market affects you invested asset negatively draw down from your cash asset for a time. When you invested assets appreciate maybe take some an...
by Aptenodytes
Mon Mar 16, 2015 12:48 pm
 
Forum: Investing - Theory, News & General
Topic: Retired - When to Sell to Generate Cash
Replies: 30
Views: 1933

Re: John Bogle's Don't Peek Challenge

I add new money twice a month, and I have a version of slice and dice with the extra volatility that goes with that, so never peeking seems just silly to me. Peeking is bad only if it leads you to do bad things. If it leads you to do bad things, stop peeking (of course such people are the ones who w...
by Aptenodytes
Mon Mar 16, 2015 12:00 pm
 
Forum: Investing - Theory, News & General
Topic: John Bogle's Don't Peek Challenge
Replies: 103
Views: 8384

Re: Retired - When to Sell to Generate Cash

The way I understand the 3 years in cash theory is that you always have about 3 years in cash. If the market tanks then you can hold off on selling for upto 3 years hoping the market would rebound within that time frame. This is clearly market timing, but it also can help someone sleep better knowi...
by Aptenodytes
Mon Mar 16, 2015 11:42 am
 
Forum: Investing - Theory, News & General
Topic: Retired - When to Sell to Generate Cash
Replies: 30
Views: 1933

Re: Retired - When to Sell to Generate Cash

The goal of the 3 yrs in cash is not to have to sell (too often) when invested assets are down. Sometimes the market is down for more than 3 yrs. So it is a decent plan but not one that will prevent you from ever selling when the market is down. Why not make a self imposed rule that when the market...
by Aptenodytes
Mon Mar 16, 2015 11:36 am
 
Forum: Investing - Theory, News & General
Topic: Retired - When to Sell to Generate Cash
Replies: 30
Views: 1933

Re: Need Your Advice on My Proposed AA

I realized I added a lot of new information. Should I start a new thread regarding my portfolio (with the available fund information)? Or is it better to keep everything contained within this thread? Thanks. There are two different groups of questions -- what AA do you want to aim for, and what com...
by Aptenodytes
Mon Mar 16, 2015 11:14 am
 
Forum: Investing - Help with Personal Investments
Topic: Need Your Advice on My Proposed AA
Replies: 15
Views: 1366

Re: Retired - When to Sell to Generate Cash

I've never understood this logic, but I am almost a decade from retirement so I haven't invested a great deal of thought into it. By itself, the act of keeping a stockpile of cash does nothing to protect you against selling assets when the price is low. Whether your reserves are 1 month or 10 years,...
by Aptenodytes
Mon Mar 16, 2015 11:06 am
 
Forum: Investing - Theory, News & General
Topic: Retired - When to Sell to Generate Cash
Replies: 30
Views: 1933

Re: Why the popularity of dividends? What's the counterargum

My sense of the best explanation: It is similar to the reason people like to play slot machines that offer lots of frequent small winnings, as opposed to a small number of bigger wins. It feeds a behavioral weakness for the appearance of regular gains, without regard to the actual long term gains. ...
by Aptenodytes
Mon Mar 16, 2015 7:03 am
 
Forum: Investing - Theory, News & General
Topic: Why the popularity of dividends? What's the counterargument?
Replies: 70
Views: 4962

Re: Why the popularity of dividends? What's the counterargum

@cjking, I think I agree with everything you say except for your first statement: (if you have a sensible equity allocation) you can be confident that your income stream will never run out. I am pretty sure that is false. Everything I've read suggests that dividend-based portfolios are no less likel...
by Aptenodytes
Sun Mar 15, 2015 1:58 pm
 
Forum: Investing - Theory, News & General
Topic: Why the popularity of dividends? What's the counterargument?
Replies: 70
Views: 4962

Re: Retirement Issues: Life Expectancy

I fully expect to live past 100, but what is more important, that very selfishly I would like my spouse to outlive me. How old I get, matters less than the quality of life we have and that we are not suffering from some horrendous disease or disability. I am always very encouraged, when I meet spry...
by Aptenodytes
Sun Mar 15, 2015 12:45 pm
 
Forum: Personal Finance (Not Investing)
Topic: Retirement Issues: Life Expectancy
Replies: 24
Views: 2190

Re: Why the popularity of dividends? What's the counterargum

My sense of the best explanation: It is similar to the reason people like to play slot machines that offer lots of frequent small winnings, as opposed to a small number of bigger wins. It feeds a behavioral weakness for the appearance of regular gains, without regard to the actual long term gains. T...
by Aptenodytes
Sun Mar 15, 2015 12:38 pm
 
Forum: Investing - Theory, News & General
Topic: Why the popularity of dividends? What's the counterargument?
Replies: 70
Views: 4962

Re: Buying a Home. 30yr FRM vs. 15yrFRM vs. ARM 5/1

Rather than repeat what has been said, I'll just say I agree most with what steve r has said here.
by Aptenodytes
Sun Mar 15, 2015 12:22 pm
 
Forum: Personal Finance (Not Investing)
Topic: Buying a Home. 30yr FRM vs. 15yrFRM vs. ARM 5/1
Replies: 32
Views: 2692

Re: Best structure for setting aside 10 years of travel expe

I still don't quite understand. Is your retirement portfolio 100% cash? If so, what's the concern about risk? If not, then you already have a model for using savings to cover recurring expenses in general. There is no need to come up with a different model for each line item in your household budget...
by Aptenodytes
Sun Mar 15, 2015 7:55 am
 
Forum: Personal Finance (Not Investing)
Topic: Best structure for setting aside 10 years of travel expenses
Replies: 13
Views: 1311

Re: Should you hold bonds and a mortgage at the same time?

2) There's absolutely no way that you could justify, on the merits, 1:1 fungibility between a house and bond investments. House values are far more volatile than bond prices. A major function of bonds is to provide ballast to what would otherwise be a very volatile portfolio. Your new house will no...
by Aptenodytes
Sat Mar 14, 2015 11:15 pm
 
Forum: Investing - Theory, News & General
Topic: Should you hold bonds and a mortgage at the same time?
Replies: 78
Views: 5997

Re: Should you hold bonds and a mortgage at the same time?

1) You need to look at the cost of the mortgage net of taxes, and the return on bond investments net of taxes. If you are in a high tax bracket and have your bonds in tax-deferred investments, then things look very different than the other way around. E.g. Between federal and state deductions I get ...
by Aptenodytes
Sat Mar 14, 2015 5:12 pm
 
Forum: Investing - Theory, News & General
Topic: Should you hold bonds and a mortgage at the same time?
Replies: 78
Views: 5997

Re: Need Your Advice on My Proposed AA

I think your small-cap tilt is pretty typical among the slice and dicers. It is more or less what I have. I have no opinion on the mid-caps. You are eschewing any value tilt, which is contrary to the conventional wisdom among the slice-and-dicers. If you have a good reason for that, that's fine, but...
by Aptenodytes
Sat Mar 14, 2015 4:39 pm
 
Forum: Investing - Help with Personal Investments
Topic: Need Your Advice on My Proposed AA
Replies: 15
Views: 1366

Re: What does a $1M portfolio look like?

Perhaps it has all been said above, but: 1) Start with fundamentals. You diversify with asset categories, not funds. You might have 2-8 asset categories; you might have 1-20 funds. Focus on the asset categories first. Even if you have 4 asset categories, one fund might be enough. 2) There is a limit...
by Aptenodytes
Sat Mar 14, 2015 4:20 pm
 
Forum: Investing - Help with Personal Investments
Topic: What does a $1M portfolio look like?
Replies: 64
Views: 9842

Re: Retirement Issues: Life Expectancy

On your first question, it seems complete irrelevant to me so I have no interest in trying to do it better. For any individual, the confidence interval on age-of-death is going to be quite wide, during most of their life and over most circumstances. So investing in improving the accuracy is of littl...
by Aptenodytes
Sat Mar 14, 2015 2:24 pm
 
Forum: Personal Finance (Not Investing)
Topic: Retirement Issues: Life Expectancy
Replies: 24
Views: 2190

Re: Proactively replace water heater?

I'm not sure we're talking about the same thing. I don't mean sump pump. I mean a submersible pump, a little different. Stand-alone, portable unit you place in the standing water. Attach hose, run it to wherever. Plug in extension cord to the nearest outlet, and it clears the water out. I see. That...
by Aptenodytes
Sat Mar 14, 2015 1:47 pm
 
Forum: Personal Consumer Issues
Topic: Proactively replace water heater?
Replies: 49
Views: 4353

Re: Best structure for setting aside 10 years of travel expe

That's only 2 years away. These expenses should be part of your household budget. Whatever you do for taxes, cars, housing, groceries etc will work for travel.
by Aptenodytes
Sat Mar 14, 2015 1:40 pm
 
Forum: Personal Finance (Not Investing)
Topic: Best structure for setting aside 10 years of travel expenses
Replies: 13
Views: 1311

Re: Should tilters recommend tilting to beginners?

I was first introduced to whole schmear of things that undergird most of our collective wisdom here -- especially efficient frontier and expense ratios -- by a slice-and-dicer. If I remember correctly, he presented the core (what you could call the 3-fund approach) and the slice-and-dice approach as...
by Aptenodytes
Sat Mar 14, 2015 1:30 pm
 
Forum: Investing - Help with Personal Investments
Topic: Should tilters recommend tilting to beginners?
Replies: 49
Views: 2717

Re: Proactively replace water heater?

Just had one go out after 16 years. I had to take a day off work and bucket out our crawl space/basement. I am sure I paid a premium to get a plumber out that day. Seeing as how the average life of a hot water heater is 8-12 years (source, Lowes), I would suggest not going through what I did, and p...
by Aptenodytes
Sat Mar 14, 2015 1:19 pm
 
Forum: Personal Consumer Issues
Topic: Proactively replace water heater?
Replies: 49
Views: 4353

Re: Proactively replace water heater?

Hmm The other thread talks about flushing a water heater once a year. If I flushed my water heater this year, then I would raise my flushing frequency from <Not a Number> to once every 19 years... 0 is a number where I live. I flush my heater a couple times a year, but if I were in your shoes, with...
by Aptenodytes
Sat Mar 14, 2015 1:16 pm
 
Forum: Personal Consumer Issues
Topic: Proactively replace water heater?
Replies: 49
Views: 4353

Re: Why not use inflation-adjusted SPIA?

^Fine if you want to do it that way, but if one's pool is large enough, there's really no need to do that mental accounting, and there's no need to pay an insurance company to hedge longevity risk. One can simply self insure. Kevin Self-insuring against longevity risk means reducing your spending b...
by Aptenodytes
Thu Mar 12, 2015 4:03 pm
 
Forum: Personal Finance (Not Investing)
Topic: Why not use inflation-adjusted SPIA?
Replies: 117
Views: 4748

Re: Mathematical: Am I on track towards my retirement goal?

Walletless, if I'm getting you right then you are figuring everything out in real terms, not nominal. If you say you'll need $150,000 in 30 years, and "$150,000" means "whatever $150,000 of today's dollars is equivalent to in 30 years," the that's what I'd call figuring things ou...
by Aptenodytes
Thu Mar 12, 2015 3:55 pm
 
Forum: Investing - Theory, News & General
Topic: Mathematical: Am I on track towards my retirement goal?
Replies: 21
Views: 2035
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