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Re: BND or a CD

On 10.29.2014, the Vanguard Total Bond Index Etf (BND) SEC yield was 2% with an average duration of 2%. At the same time a 5 year CD is yielding a bit over. Further the CD is a done deal, while BND can and will fluctuate in price. Why then bogleheads prefer BND? Or do they? OK, my guess is they pre...
by Bustoff
Fri Oct 31, 2014 5:47 pm
 
Forum: Investing - Help with Personal Investments
Topic: BND or a CD
Replies: 46
Views: 2498

Re: BND or a CD

This is a little off the topic but, I saw this footnote in a Vanguard research paper. http://www.vanguard.com/pdf/s130.pdf The footnote is cited to the last sentence in the executive summary and states: 1. During periods of severe equity market stress, cash has historically been the most consistent...
by Bustoff
Fri Oct 31, 2014 2:55 pm
 
Forum: Investing - Help with Personal Investments
Topic: BND or a CD
Replies: 46
Views: 2498

Re: BND or a CD

This is a little off the topic but, I saw this footnote in a Vanguard research paper. http://www.vanguard.com/pdf/s130.pdf The footnote is cited to the last sentence in the executive summary and states: 1. During periods of severe equity market stress, cash has historically been the most consistent ...
by Bustoff
Fri Oct 31, 2014 2:14 pm
 
Forum: Investing - Help with Personal Investments
Topic: BND or a CD
Replies: 46
Views: 2498

Re: Is $700,000 enough to retire? Opinions please .

DH age 64.3 wants to retire unexpectedly from good job ,early in 2 months. Just ready, wants to do new things,work on our low profit side business. I also work and am 59.3 y/o. I think we have inadequate retirement funds to fund our yearly spending of after tax of $65000 (around $80000 taxable). It...
by Bustoff
Fri Oct 31, 2014 1:32 pm
 
Forum: Investing - Help with Personal Investments
Topic: Is $700,000 enough to retire? Opinions please .
Replies: 46
Views: 4664

Re: Is $700,000 enough to retire? Opinions please .

This may be too conservative of an assumption but, if the annual return on a $700,000 investment will be offset by taxes and inflation, then $700,000/30 yrs = $23,333 per year.

$23,333 - Savings/30 years
$10,000 - Bus.
$24,000 - his SS
$15,000 - your SS at 62 (guess)
$72,333
by Bustoff
Fri Oct 31, 2014 12:39 pm
 
Forum: Investing - Help with Personal Investments
Topic: Is $700,000 enough to retire? Opinions please .
Replies: 46
Views: 4664

Re: Vinyl Siding over wood

Those who do not remove the wood do so for one reason - to cut costs and time to improve their profit margin. I re-sided my home a year ago, they removed the old though not rotted wood shingle before putting up the vinyl siding. That is patently false. I know this because I have a friend in the sid...
by Bustoff
Fri Oct 31, 2014 9:03 am
 
Forum: Personal Consumer Issues
Topic: Vinyl Siding over wood
Replies: 16
Views: 1361

Re: Lincoln MKC - anyone tried this one out?

I don't know about the vehicle itself, but the spoofs of the MKC commercials with Matthew McConaughey are great.

This one is from the Ellen show: http://www.youtube.com/watch?v=K69chHMtrs4

This one is from SNL: http://www.youtube.com/watch?v=z3eN9u5N2Q4
by Bustoff
Fri Oct 31, 2014 7:44 am
 
Forum: Personal Consumer Issues
Topic: Lincoln MKC - anyone tried this one out?
Replies: 11
Views: 1096

Re: BND or a CD

Why then bogleheads prefer BND? Or do they? Do Bogelheads prefer BND over CD's ? Some prefer both. Since accumulators typically have higher equity allocations (higher return) and longer horizons, they might be more interested in FI correlations than FI return, and therefore may want to determine wh...
by Bustoff
Thu Oct 30, 2014 10:45 am
 
Forum: Investing - Help with Personal Investments
Topic: BND or a CD
Replies: 46
Views: 2498

Re: Help with Investing for my wife's retirement

jesuitstudent wrote:I would like to set her up with a three fund portfolio but not sure which funds make the most sense. I think since we are both at least 25 years from retirement we can be fairly aggressive.


You might find this information helpful: http://www.vanguard.com/investingprinciples
by Bustoff
Thu Oct 30, 2014 8:55 am
 
Forum: Investing - Help with Personal Investments
Topic: Help with Investing for my wife's retirement
Replies: 11
Views: 780

The "Timing Advantage"?

Two separate groups of academic researchers have documented that paying subscribers get faster access to SEC filings, giving them a potential edge on the rest of the market. According to the article and the research, the findings suggest the SEC's own system is giving professional traders an edge ov...
by Bustoff
Wed Oct 29, 2014 4:40 pm
 
Forum: Investing - Theory, News & General
Topic: The "Timing Advantage"?
Replies: 3
Views: 435

Re: A Challenge for Bogleheads - the market has changed

Shortly after the 2000-2002 market meltdown, a couple of well known knuckleheads published a book wherein they claimed you could "time the market" by observing its 15 year moving average (i.e., by observing the past). A few years later, fortune would shine upon the authors as the 2008 mark...
by Bustoff
Wed Oct 29, 2014 9:09 am
 
Forum: Investing - Theory, News & General
Topic: A Challenge for Bogleheads - the market has changed
Replies: 52
Views: 5144

Re: A Challenge for Bogleheads - the market has changed

Again, my fundamental point is that huge market swings over the space of years are the dominant pattern of many modern markets. I lack the technical understanding to challenge the above assertions. Uh yep, the markets move up and down. What knowledge do think you lack to understand that ? So for me...
by Bustoff
Wed Oct 29, 2014 9:08 am
 
Forum: Investing - Theory, News & General
Topic: A Challenge for Bogleheads - the market has changed
Replies: 52
Views: 5144

Re: Gross Yearly Income needed in Retirement (Speculation)

I think $2 million is more than enough for most people. That number I think you mean for Retirement Assets, not Gross Yearly Income. But yes, I could survive nicely with $2M in taxable income each year as well. It would be no problem keeping my yacht's fuel tank full... ...and you could hire an ent...
by Bustoff
Tue Oct 28, 2014 12:13 pm
 
Forum: Personal Finance (Not Investing)
Topic: Gross Yearly Income needed in Retirement (Speculation)
Replies: 159
Views: 12470

Re: Gross Yearly Income needed in Retirement (Speculation)

I think $2 million is more than enough for most people.
by Bustoff
Tue Oct 28, 2014 11:29 am
 
Forum: Personal Finance (Not Investing)
Topic: Gross Yearly Income needed in Retirement (Speculation)
Replies: 159
Views: 12470

Re: Lump Sum vs Pension

$320,000 / $20,000 = 16 years.
According to the life expectancy tables, your spouse could live 30 more years.

Just curious, if you took the lump, would it be rolled into an IRA ?
by Bustoff
Tue Oct 28, 2014 9:45 am
 
Forum: Personal Finance (Not Investing)
Topic: Lump Sum vs Pension
Replies: 15
Views: 1413

Re: Subpoena [Received subpoena, how to proceed?]

You should contact the attorney handling the case. Many states have rules that prohibit attorneys from serving a subpoena that compels that production of documents without proper "notice" to the opposing attorney or unless appearing for deposition or trial. However, federal procedure and r...
by Bustoff
Sat Oct 25, 2014 1:44 pm
 
Forum: Personal Consumer Issues
Topic: Subpoena [Received subpoena, how to proceed?]
Replies: 13
Views: 2233

Re: Keep My 50/50 AA -- but modify the pieces

Bertilak - Thank you for your post. Average duration for Total Bond Fund is 5.6 years vs. Inter-Term Bond Index duration of 6.5 years. Hmm, the difference in duration doesn't seem significant enough to push it into "high risk". Number of bonds is 7584 for TBM vs 1590 for Inter-Term Bond In...
by Bustoff
Fri Oct 24, 2014 10:51 am
 
Forum: Investing - Help with Personal Investments
Topic: Keep My 50/50 AA -- but modify the pieces
Replies: 17
Views: 1175

Re: Hedge CDs with long-term Treasurys?

Depending on how much you're planning on buying, I would think EE Savings Bonds would look more appealing for an individual U.S. investors at today's rates. The fact that the EE Savings Bonds are guaranteed to double in 20 years means if you hold onto them for that length of time your effective rat...
by Bustoff
Fri Oct 24, 2014 10:04 am
 
Forum: Investing - Theory, News & General
Topic: Hedge CDs with long-term Treasurys?
Replies: 8
Views: 771

Re: Should I Sue?

karpems wrote:We needed to move it out and rent a storage unit for the time being.


Be careful with winter approaching. Mice have a way of finding there way into things like that. :shock:
by Bustoff
Fri Oct 24, 2014 9:30 am
 
Forum: Personal Consumer Issues
Topic: Should I Sue? [couch damaged in garage of rental]
Replies: 39
Views: 3228

Re: Should I Sue?

1) I would not hire an attorney, you can do this on your own. see (3) below. 2) Call your state's Department of Insurance and confirm what you are being told by your insurance provider. Hard to believe that rain leaking from the garage roof would come under the heading of a natural disaster (flood)....
by Bustoff
Fri Oct 24, 2014 8:17 am
 
Forum: Personal Consumer Issues
Topic: Should I Sue? [couch damaged in garage of rental]
Replies: 39
Views: 3228

Re: How does one hedge against deflation?

Simplegift wrote:High-quality bonds, preferably Treasuries ...


Interesting in that William Bernstein has recommended short, high-quality bonds as an inflation hedge.
by Bustoff
Mon Oct 20, 2014 1:40 pm
 
Forum: Investing - Theory, News & General
Topic: How does one hedge against deflation?
Replies: 52
Views: 3874

Re: Help me choose... [Retirement withdrawal strategy]

Retiree here... Just finished reconfiguring my portfolio for the next 30 years having just turned 65. SS and SPIA's will cover my "basic" needs (about 60% of current expenses). I am withdrawing about 3.5% of our portfolio annually to support the balance of our current expenses. Bernstein'...
by Bustoff
Mon Oct 20, 2014 10:51 am
 
Forum: Personal Finance (Not Investing)
Topic: Help me choose... [Retirement withdrawal strategy]
Replies: 12
Views: 1278

Re: Attorney Hourly Rates?

Recently had to get a regular lawyer to do some routine research stuff for me. ... me and neighbors were concerned about our subdivision, pending changes in covenants/deed restrictions, also some rumors from the subdivision expanding nearby. Also some questions on easements, street right-of-way des...
by Bustoff
Sun Oct 19, 2014 12:51 pm
 
Forum: Personal Finance (Not Investing)
Topic: Attorney Hourly Rates?
Replies: 41
Views: 3031

Re: New case of Ebola in U.S.: Is it the latest market headw

Yes, it's a problem for the market.
Have you seen airline stocks lately. They are descending so rapidly that the oxygen masks have deployed.
by Bustoff
Wed Oct 15, 2014 2:01 pm
 
Forum: Investing - Theory, News & General
Topic: New case of Ebola in U.S.: Is it the latest market headwind?
Replies: 13
Views: 1303

Re: Headed for a 300+ point loss today?

The 10 Yr is below 2%.

After all the anxiety over bond funds, who would have thunk. :oops:
by Bustoff
Wed Oct 15, 2014 1:38 pm
 
Forum: Investing - Theory, News & General
Topic: Headed for a 300+ point loss today?
Replies: 445
Views: 30545

Re: Invested Windfall and Now Market Is Down

You don't monitor the changing value of your home from one month to the next, right?
Why is that?
It's because you can't sell your home with the click of a mouse.
by Bustoff
Tue Oct 14, 2014 2:28 pm
 
Forum: Investing - Help with Personal Investments
Topic: Invested Windfall and Now Market Is Down
Replies: 34
Views: 5002

Re: Thoughts on getting out [of job]

At 59, I absolutely hate my job. I am fraught with anxiety and dread ( most of this is in my own mind but psychological counseling has had only minimal benefit). I am not sleeping, am agitated, worry incessantly and want to go. After years of careful planning, am I ruining the scenario? The self ap...
by Bustoff
Tue Oct 14, 2014 9:23 am
 
Forum: Personal Finance (Not Investing)
Topic: Thoughts on getting out [of job]
Replies: 37
Views: 5049

Re: Dry Powder, When to Start Value Averaging In?

Nearly 55, most likely will be retiring in less than a year. My question, looks like I will have 50 to maybe 100K after tax money that I'd like to put somewhere. Emergency fund is covered, won't need the money for a year or two, possibly more. Before this minor correction I was hanging on for anoth...
by Bustoff
Tue Oct 14, 2014 8:11 am
 
Forum: Investing - Help with Personal Investments
Topic: Dry Powder, When to Start Value Averaging In?
Replies: 23
Views: 2220

Re: Taxable Investment Acct - Cost Basis

The default is First-In, First-Out, and that's right in there in the IRS publications, so that's what the IRS will use if you do not specifically id the shares sold. When you fill out your tax return, you have to put the Date Acquired for the shares whether you specifically ID them or not. You also...
by Bustoff
Sun Oct 12, 2014 12:36 pm
 
Forum: Personal Finance (Not Investing)
Topic: Taxable Investment Acct - Cost Basis
Replies: 9
Views: 787

Re: Stable Income Fund vs. Total Bond Market

joe8d wrote:I would vote for all Stable Value at this time.

+1
by Bustoff
Sun Oct 12, 2014 12:02 pm
 
Forum: Investing - Help with Personal Investments
Topic: Stable Income Fund vs. Total Bond Market
Replies: 32
Views: 2225

Re: Best town I've never heard of [for relocating]

joe8d wrote:I know that Amherst, NY is on that MONEY list.

+1
But the property taxes are rough.
by Bustoff
Sun Oct 12, 2014 11:42 am
 
Forum: Personal Consumer Issues
Topic: Best town I've never heard of [for relocating]
Replies: 97
Views: 9788

Re: Taxable Investment Acct - Cost Basis

If using ACB, then you are forced to use FIFO to designate the shares you sold. You cannot specify which shares you are selling if you use ACB. If you use ACB, you always are selling the oldest shares purchased. All these sentences say the same thing. If you have never sold any shares of this fund ...
by Bustoff
Sun Oct 12, 2014 11:24 am
 
Forum: Personal Finance (Not Investing)
Topic: Taxable Investment Acct - Cost Basis
Replies: 9
Views: 787

Re: Draw down taxable saving first?

This recent Morningstar article may help. It was part of a series of articles this week on retirement. For retirees tapping their assets... Regards, Bustoff That article in interesting, but it keeps saying that there is some sort of problem with withdrawing from taxable because it's typically in mo...
by Bustoff
Sat Oct 11, 2014 11:17 am
 
Forum: Investing - Theory, News & General
Topic: Draw down taxable saving first?
Replies: 38
Views: 2598

Re: Why not 100% Stocks?

What's your point? Even those with significant parts of their portfolios in bonds won't argue that bonds will outperform stocks over the long term. And yes, YTD bonds have outperformed. But over the past 12 months stocks have outperformed bonds by more than double. And even that means absolutely no...
by Bustoff
Sat Oct 11, 2014 8:55 am
 
Forum: Investing - Theory, News & General
Topic: Why not 100% Stocks?
Replies: 274
Views: 20930

Re: Why not 100% Stocks?

Vanguard Total Bond fund has pulled ahead of Total Stock for the year. Just sayin.

YTD as of 10/09/2014
Total Bond Fund ... 5.23%
Total Stock Mkt ... 3.11%
by Bustoff
Fri Oct 10, 2014 6:24 pm
 
Forum: Investing - Theory, News & General
Topic: Why not 100% Stocks?
Replies: 274
Views: 20930

Re: Draw down taxable saving first?

I plan to retire in 2 years. I will have to start using savings to fund retirement. Does it make sense to draw down taxable savings first? Most of mine in in TSM and Vanguard International. tadamsmar, This recent Morningstar article may help. It was part of a series of articles this week on retirem...
by Bustoff
Fri Oct 10, 2014 10:39 am
 
Forum: Investing - Theory, News & General
Topic: Draw down taxable saving first?
Replies: 38
Views: 2598

Re: Why not a portfolio of equity index funds and CD's?

...Wade Pfau and Michael Kitces presented some research findings that suggest in overvalued environments Treasury Bills are superior to bonds... And since I don't think there's a way to know that we're in an "overvalued environment" while we're in one, I think that's the same as saying &q...
by Bustoff
Mon Oct 06, 2014 11:32 am
 
Forum: Investing - Theory, News & General
Topic: Why not a portfolio of equity index funds and CD's?
Replies: 27
Views: 2654

Re: Hyundai vs. Toyota

Consumer reports gave the Honda Accord a score of 90, Hyundai Sonata a score of 89 and Camry a score of 88. All were 4-cyl.

However, the Camry Hybrid scored a 93 and the Camry XLE (V6) scored a 92.
by Bustoff
Mon Oct 06, 2014 10:15 am
 
Forum: Personal Consumer Issues
Topic: Hyundai vs. Toyota
Replies: 45
Views: 4701

Re: Why not a portfolio of equity index funds and CD's?

Wade Pfau and Michael Kitces presented some research findings that suggest in overvalued environments Treasury Bills are superior to bonds. Notably, the results also show that in overvalued environments, using stocks and Treasury Bills is actually superior to using a more traditional stock/bond port...
by Bustoff
Mon Oct 06, 2014 9:41 am
 
Forum: Investing - Theory, News & General
Topic: Why not a portfolio of equity index funds and CD's?
Replies: 27
Views: 2654

Re: Read too many books... help untangle

So help me untangle all these concepts from folks we all know and love around these parts that are seemingly contradictory. The secret to successful investing is not about determining which author is most convincing. Success in investing comes from eliminating the big mistakes. So lets start with e...
by Bustoff
Mon Oct 06, 2014 9:16 am
 
Forum: Investing - Theory, News & General
Topic: Read too many books... help untangle
Replies: 48
Views: 4081

Re: What Movie Have You Recently Watched?

"Trance" ... the movie was OK but what I loved was they played a song I had not heard since I was a child.

Chanson D'Amour
by Bustoff
Sun Oct 05, 2014 1:10 pm
 
Forum: Personal Consumer Issues
Topic: What Movie Have You Recently Watched?
Replies: 131
Views: 6849

Re: Why not 100% Stocks?

Why not 100% Stocks?

Look... why take a chance? At least, that's the way I feel about it.
Remo Gaggi
by Bustoff
Sun Oct 05, 2014 1:07 pm
 
Forum: Investing - Theory, News & General
Topic: Why not 100% Stocks?
Replies: 274
Views: 20930

Re: I am surely doing something wrong (FireCalc question)

You are aware the default portfolio for FireCalc is 75% equities and the long interest rate for fixed income ?
by Bustoff
Sat Oct 04, 2014 3:35 pm
 
Forum: Personal Finance (Not Investing)
Topic: I am surely doing something wrong (FireCalc question)
Replies: 45
Views: 4006

Re: Buffett Has 100% Equities in his Pensions Funds

I thought this was the more interesting remark from Buffett: "If interest rates were 10%, all of our stocks would be worth less." Buffett said then that with interest rates near 0%, all assets were worth more. "Every asset, at present value, is worth the cash it will return before its...
by Bustoff
Sat Oct 04, 2014 2:50 pm
 
Forum: Investing - Theory, News & General
Topic: Buffett Has 100% Equities in his Pensions Funds
Replies: 39
Views: 2716

Deadly airbag recall

For Bogleheads who buy used cars, just a reminder to exercise caution if you are considering the purchase of a used Honda or Toyota product, especially those made between 2001 and 2006.

The list has been expanding.
Takata airbag recall
by Bustoff
Sat Oct 04, 2014 2:20 pm
 
Forum: Personal Consumer Issues
Topic: Deadly airbag recall
Replies: 3
Views: 582

Re: Best place to park my emergency funds

I keep mine in a storage unit. http://i55.photobucket.com/albums/g155/emmasdadwsca/4E683D75-AB6F-4A70-BEE5-6019D9EF9E18-4707-000004A15A81B826.jpg Sorry couldn't resist. I use an online savings account for short-term needs. Check out depositaccounts where you can find the best deals for CD's, online ...
by Bustoff
Thu Oct 02, 2014 6:31 pm
 
Forum: Investing - Help with Personal Investments
Topic: Best place to park my emergency funds
Replies: 16
Views: 1898

Re: Fidelity Offers A Round-Trip to Europe for New Account

I'm not flying anywhere.
Not gonna do it. na ga da.
by Bustoff
Thu Oct 02, 2014 1:10 pm
 
Forum: Personal Finance (Not Investing)
Topic: Fidelity Offers A Round-Trip to Europe for New Account
Replies: 26
Views: 3088
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