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Re: Coming to terms with low risk tolerance

There's nothing wrong with that allocation. It is close to mine and has done fine historically. I am somewhat older than you, but I chose that allocation when I was in my 40's and have stuck with it. People tend to forget that in 2008, we didn't know that the market would recover - and it may not ha...
by Call_Me_Op
Sun Apr 19, 2015 6:29 am
 
Forum: Investing - Help with Personal Investments
Topic: Coming to terms with low risk tolerance
Replies: 29
Views: 1604

Re: How much riskier are munis than treasuries?

While the Vanguard ratings are helpful they don't explain what the source of the risk is. For instance the Extended Duration Treasury ETF has a risk grade of 5--all interest rate risk. The high yield corporate fund, by contrast has a grade of 3--mostly credit risk. Vanguard is probably defining ris...
by Call_Me_Op
Fri Apr 17, 2015 6:47 am
 
Forum: Investing - Theory, News & General
Topic: How much riskier are munis than treasuries?
Replies: 32
Views: 3766

Re: NY Times Article - Active Mutual Funds

Same old story; with investing, you get what you don't pay for.
by Call_Me_Op
Fri Apr 17, 2015 6:40 am
 
Forum: Investing - Theory, News & General
Topic: NY Times Article - Active Mutual Funds
Replies: 24
Views: 2638

Re: Should I purchase an Umbrella policy?

With umbrella policies, I generally view them as desirable because they provide you coverage for liabilities in excess of your regular limits on various policies. They are generally VERY cheap, which is why I carry one myself. I already have the limits required to purchase an umbrella policy, along...
by Call_Me_Op
Thu Apr 16, 2015 7:16 am
 
Forum: Personal Finance (Not Investing)
Topic: Should I purchase an Umbrella policy?
Replies: 48
Views: 4109

Re: noise-blocking headphones

Ear plugs block low-frequency noise much better than ear muffs.
by Call_Me_Op
Thu Apr 16, 2015 7:13 am
 
Forum: Personal Consumer Issues
Topic: noise-blocking headphones
Replies: 35
Views: 2588

Re: How many baskets for your eggs?

I am not yet retired and I currently have a lot of baskets. When retired, I'd like to be down to 3. That's a number I think I can live with.
by Call_Me_Op
Thu Apr 16, 2015 6:44 am
 
Forum: Investing - Theory, News & General
Topic: Retirement expenditure concept
Replies: 46
Views: 3196

Re: How much riskier are munis than treasuries?

But, are they really that much riskier in terms of the odds of "losing your shirt" or the munis dropping 20-50% while the treasuries do not [again, in a diversified fund of hundreds/thousands of issuers]? I find that highly unlikely. It is highly unlikely but not impossible. Both muni's a...
by Call_Me_Op
Thu Apr 16, 2015 6:37 am
 
Forum: Investing - Theory, News & General
Topic: How much riskier are munis than treasuries?
Replies: 32
Views: 3766

Re: Can't Just Do Nothing

Does anyone else feel the same way? What do you do to satisfy the urge to do something in the financial realm while "staying the course" and "ignoring the noise" when it comes to your investments? I certainly do not. I have a good job and thinking about schemes would distract me...
by Call_Me_Op
Thu Apr 16, 2015 6:29 am
 
Forum: Personal Finance (Not Investing)
Topic: Can't Just Do Nothing
Replies: 41
Views: 5215

Re: Raising well-adjusted children when you're "rich"?

I read a statistic the other day stating that the average American child receives something like 70+ new toys yearly. That's interesting, since I typically received 1 toy per year. I don't think it's good for kids to be given everything they want. They should be taught to fend for themselves; it bu...
by Call_Me_Op
Wed Apr 15, 2015 7:01 am
 
Forum: Personal Finance (Not Investing)
Topic: Raising well-adjusted children when you're "rich"?
Replies: 43
Views: 3391

Re: Does your family know about your net worth (ball park)?

From looking at the recent annual income poll result, I think most BHs are already millionaires or will become one. Q1. Does your family (parents, siblings) know about your net worth (ball park figure)? Q2. Do you know their net worth? Q3. How does knowing one's net worth affect family relationship...
by Call_Me_Op
Tue Apr 14, 2015 7:02 am
 
Forum: Personal Finance (Not Investing)
Topic: Does your family know about your net worth (ball park)?
Replies: 92
Views: 9439

Re: Inflation Protected Securities Fund

I would expect stocks to be a much better long-term inflation hedge than TIPS purchased at a real yield of about zero.
by Call_Me_Op
Tue Apr 14, 2015 6:28 am
 
Forum: Investing - Help with Personal Investments
Topic: Inflation Protected Securities Fund
Replies: 10
Views: 1001

Re: Best investment in a Taxable Account ?

Hello Everyone .I am new to the forum I am glad that I came across it . I started investing late but I have a high income so I am thinking of investing heavily in Taxable account after I Max out 401k , Roth IRA . What is the most tax efficient investment I should have ? Just because an investment i...
by Call_Me_Op
Mon Apr 13, 2015 6:27 am
 
Forum: Investing - Help with Personal Investments
Topic: Best investment in a Taxable Account ?
Replies: 11
Views: 1274

Re: WSJ: You may need less than 80% in retirement

What you make from your job has little to do with it. It's what you normally spend that is relevant.
by Call_Me_Op
Sat Apr 11, 2015 7:21 am
 
Forum: Investing - Theory, News & General
Topic: WSJ: You may need less than 80% in retirement
Replies: 98
Views: 8895

Re: Concerns about not tilting to certain sectors

Do you ever worry about "missing out" by not tilting to a specific sector? It seems like health care and small caps are worthy of a tilt.. No, because I do tilt. Why do I tilt? It's not because I am a daredevil. It is because I want the most return per unit of risk, and the historical rec...
by Call_Me_Op
Fri Apr 10, 2015 8:00 am
 
Forum: Investing - Theory, News & General
Topic: Concerns about not tilting to certain sectors
Replies: 10
Views: 734

Re: How to know if I am saving enough?

45% is way more than most people save. I would stop worrying about it. If you are living comfortably and saving 45%, you are in great shape.
by Call_Me_Op
Fri Apr 10, 2015 7:56 am
 
Forum: Personal Finance (Not Investing)
Topic: How to know if I am saving enough?
Replies: 25
Views: 2669

Re: Should My Parents Switch Their Bond Funds?

No, probably not. If this money is in a tax-deferred account, then definitely not.

Long-term tax-exempt has more risk than Total Bond - in the form of both credit risk and duration risk. If the money is in taxable, then considering intermediate tax-exempt is reasonable as a substitute.
by Call_Me_Op
Fri Apr 10, 2015 7:52 am
 
Forum: Investing - Help with Personal Investments
Topic: Should My Parents Switch Their Bond Funds?
Replies: 10
Views: 777

Re: CD question

Don't let the tax tail wag the dog. If you have a choice, hold is tax-deferred. But otherwise, holding in taxable is fine. The benefits of CD's, especially bank CD's, can outweigh tax concerns.
by Call_Me_Op
Fri Apr 10, 2015 7:49 am
 
Forum: Investing - Help with Personal Investments
Topic: CD question
Replies: 2
Views: 407

Re: How does a retired person mitigate a Bond Bubble?

My mom is age 65 and retired. Her pension + SS pays her monthly expenses. Her entire IRA ($300k) is in Vanguard's Target Retirement Income fund (30% stocks/70% Bonds). Would the bond bubble bursting kill her IRA? If not, why not since it's 70% bonds? If so, how to mitigate it? Why isn't she in bank...
by Call_Me_Op
Fri Apr 10, 2015 7:18 am
 
Forum: Investing - Theory, News & General
Topic: How does a retired person mitigate a Bond Bubble?
Replies: 46
Views: 5684

Re: Total bond vs. intermediate treasury

Tough to answer. Really a matter pf preference. Total bond carries more types of risk factors, but has higher expected return and higher expenses. I'd probably choose treasury because it has lower correlation to equities and lower expenses.
by Call_Me_Op
Mon Apr 06, 2015 11:34 am
 
Forum: Investing - Help with Personal Investments
Topic: Total bond vs. intermediate treasury
Replies: 8
Views: 628

Re: Institutional Diversification???

I am in the camp that believes in custodial diversification. I am sure you remember 2008, and things were happening then that people thought could never happen. The additional work associated with having multiple custodians is trivial; just use a simple spreadsheet to track investments.
by Call_Me_Op
Mon Apr 06, 2015 7:06 am
 
Forum: Investing - Help with Personal Investments
Topic: Institutional Diversification???
Replies: 10
Views: 909

Re: Why are Bonds expensive?

Bond yields are so low for 2 reasons: 1.) Expectations are that inflation will remain low. 2.) There is still a lot of residual fear associated with the 2008-2009 melt-down. Many investors are still gun shy, and this will be the case for some time (think children of the Depression). This increases d...
by Call_Me_Op
Mon Apr 06, 2015 6:49 am
 
Forum: Investing - Theory, News & General
Topic: Why are Bonds expensive?
Replies: 24
Views: 2336

Re: Do you think Ric Edelman is correct, never pay dow mortg

Let's say I decided to follow this advice in 1928. I own my home outright after many years and I am now comfortably retired, having depleted my human capital. However, I decide to take out a mortgage for the value of my home and invest the loan amount in the stock market. The following year, the ma...
by Call_Me_Op
Sun Apr 05, 2015 9:20 am
 
Forum: Investing - Theory, News & General
Topic: Do you think Ric Edelman is correct, never pay down mortgage
Replies: 209
Views: 16201

Re: Do you think Ric Edelman is correct, never pay dow mortg

Anyway, 'never' is a strong word but there are not many scenarios in a low rate environment where paying off the mortgage makes sense from a spreadsheet point of view. The above example with the retiree who buys a bunch of stocks after selling their home is a straw man. I don't think anyone recomme...
by Call_Me_Op
Sun Apr 05, 2015 8:30 am
 
Forum: Investing - Theory, News & General
Topic: Do you think Ric Edelman is correct, never pay down mortgage
Replies: 209
Views: 16201

Re: Do you think Ric Edelman is correct, never pay dow mortg

Let's say I decided to follow this advice in 1928. I own my home outright after many years and I am now comfortably retired, having depleted my human capital. However, I decide to take out a mortgage for the value of my home and invest the loan amount in the stock market. The following year, the mar...
by Call_Me_Op
Sun Apr 05, 2015 7:22 am
 
Forum: Investing - Theory, News & General
Topic: Do you think Ric Edelman is correct, never pay down mortgage
Replies: 209
Views: 16201

Re: Role of Nominal Governent Bonds

Nominal bonds provide better return (than TIPS) if inflation is below expectations. They also tend to do better during market dislocations.
by Call_Me_Op
Sat Apr 04, 2015 7:29 am
 
Forum: Investing - Theory, News & General
Topic: Role of Nominal Governent Bonds
Replies: 20
Views: 1417

Re: The Detriments of Rebalancing

Rebalancing is intended to control risk, not to enhance return.
by Call_Me_Op
Fri Apr 03, 2015 5:36 am
 
Forum: Investing - Theory, News & General
Topic: The Detriments of Rebalancing
Replies: 67
Views: 5754

Re: If long-term, why not just go really high risk?

Hi everyone, If someone wants to invest in a security and let it sit for 50 years, why should they even care about volatility? Wouldn't it behoove the person to just buy a risky index fund composed 100% of stocks? Thanks! It's never a sure thing. That is what risk means. Defining risk strictly as v...
by Call_Me_Op
Thu Apr 02, 2015 5:29 am
 
Forum: Investing - Theory, News & General
Topic: If long-term, why not just go really high risk?
Replies: 49
Views: 4915

Re: My Strategy For A Market Crash

My strategy for a market crash; Stay the course.
by Call_Me_Op
Wed Apr 01, 2015 6:31 am
 
Forum: Investing - Theory, News & General
Topic: My Strategy For A Market Crash
Replies: 54
Views: 9146

Re: Would Robo Advisor replace index fund and passive invest

Who needs someone or something to tell you how to invest in a few index funds?
by Call_Me_Op
Wed Apr 01, 2015 5:36 am
 
Forum: Investing - Theory, News & General
Topic: Would Robo Advisor replace index fund and passive investment
Replies: 17
Views: 1586

Re: Tesla to start making Batteries for Home Solar

I don't think you need solar for these batteries to be useful. I think the best application would be to replace back-up generators.
by Call_Me_Op
Wed Apr 01, 2015 5:34 am
 
Forum: Personal Consumer Issues
Topic: Tesla to start making Batteries for Home Solar
Replies: 61
Views: 4211

Re: Implications of Marriage - she with debt and low income

bengal22 wrote:One should marry for love.


Certainly. But this does not mean that if you believe you are in love you should get married.
by Call_Me_Op
Mon Mar 30, 2015 12:01 pm
 
Forum: Personal Finance (Not Investing)
Topic: Implications of Marriage - she with debt and low income (WI)
Replies: 71
Views: 6581

Re: umbrella vs. asset protection

I always thought that an umbrella policy IS for asset protection.
by Call_Me_Op
Mon Mar 30, 2015 8:42 am
 
Forum: Personal Finance (Not Investing)
Topic: umbrella vs. asset protection
Replies: 6
Views: 735

Re: Wise move to move some $ to cash before bear market?

I knew I would get these responses. Market timing. But, it sure seems if somebody took out 30% and put it in cash at the right time, he would be sitting pretty. I know, at the right time... Two comments: 1.) I'm sure you are aware that if you take-out 30% and the market corrects by 30%, you will st...
by Call_Me_Op
Mon Mar 30, 2015 8:37 am
 
Forum: Investing - Theory, News & General
Topic: Wise move to move some $ to cash before bear market?
Replies: 116
Views: 11706

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

I don't know how "paltry" the amount is. If you are doing what Zvi Bodie is suggesting, then you'd be able to save $10K per year in I-Bonds, which would accumulate to $200K over a 20-year saving horizon. For most people, $10K is probably at the upper limit of what they are saving anyway. ...
by Call_Me_Op
Fri Mar 27, 2015 10:26 am
 
Forum: Investing - Theory, News & General
Topic: "TIPS. Love them or leave them?"
Replies: 16
Views: 2000

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

I wish articles about TIPS would also discuss I-Bonds. I-Bonds offer inflation protection and have no term risk, since they can be cashed any time after 12 months for their face value plus accrued interest. Zvi Bodie prefers them to TIPS. There are purchase limits - $10K annually, and you can't own...
by Call_Me_Op
Fri Mar 27, 2015 10:16 am
 
Forum: Investing - Theory, News & General
Topic: "TIPS. Love them or leave them?"
Replies: 16
Views: 2000

Re: "Financial Simplicity: What is Your Time Worth?"

While I agree in principle with the premise, I have multiple accounts and the additional time to "manage" them is really very minute. I track assets on a spreadsheet. Updating the spreadsheet monthly takes about 5 minutes (and I enjoy doing it). Additional time to do taxes is perhaps 20 mi...
by Call_Me_Op
Sun Mar 22, 2015 6:35 am
 
Forum: Investing - Theory, News & General
Topic: "Financial Simplicity: What is Your Time Worth?"
Replies: 27
Views: 3668

Re: How do you invest your taxable account?

I have a question for anyone here - In the Wiki page (http://www.bogleheads.org/wiki/Principles_of_tax-efficient_fund_placement), Table 1 (hypothetical tax costs) has an entry for Municipal Bonds and the estimated tax hit for an investor in the 25% bracket is listed as 1.50%. Shouldn't that be 0%? ...
by Call_Me_Op
Sat Mar 21, 2015 7:22 am
 
Forum: Investing - Theory, News & General
Topic: How do you invest your taxable account?
Replies: 69
Views: 7506

Re: Please help select a "safe" bond fund

Can anyone suggest a good quality "simple" bond fund where I can reliably park my living expenses (and my child's next year's private-school college fund for each of the next 4 years)? Sorry - no such thing. If you want certainty in the short-term, you are looking at the risk-free rate, w...
by Call_Me_Op
Thu Mar 19, 2015 11:06 am
 
Forum: Investing - Help with Personal Investments
Topic: Please help select a "safe" bond fund
Replies: 22
Views: 2349

Re: Anyone concerned about their bond holdings?

Increase in short-term interest rates is already factored into the yield curve. Do you know better than the bond market? Are you feeling lucky?
by Call_Me_Op
Thu Mar 19, 2015 11:04 am
 
Forum: Investing - Theory, News & General
Topic: Anyone concerned about their bond holdings?
Replies: 58
Views: 5829

Re: Larry on interest rates and bond term risk

Then there's "Pascal's Wager" that reminds us that (for those sitting on the sidelines of the bond market) the possible cost of being wrong is much greater than the benefit of being right.
by Call_Me_Op
Thu Mar 19, 2015 11:00 am
 
Forum: Investing - Theory, News & General
Topic: Larry on interest rates and bond term risk
Replies: 12
Views: 1697

Re: Buy home or keep bond fund ??

Buying a home (or not) should be a lifestyle decision - not a financial one (as long as one can be afforded).
by Call_Me_Op
Sun Mar 15, 2015 10:13 am
 
Forum: Investing - Help with Personal Investments
Topic: Buy home or keep bond fund ??
Replies: 7
Views: 609

Re: American Funds beats the market 97% of the time?

Raybo wrote:The S&P 500 is the 500 largest public companies in the US.


Correction - 500 of the largest companies.
by Call_Me_Op
Sun Mar 15, 2015 7:32 am
 
Forum: Investing - Theory, News & General
Topic: American Funds beats the market 97% of the time?
Replies: 50
Views: 5328

Re: Worried about neighbor's tree damaging my property

I had a similar problem several years ago.I asked the neighbor if I could have her tree cut down (st my expense), she agreed, and I did it.
by Call_Me_Op
Sun Mar 15, 2015 7:27 am
 
Forum: Personal Consumer Issues
Topic: Worried about neighbor's tree damaging my property
Replies: 16
Views: 1934

Re: The Permanent Portfolio as an accumulation portfolio

At the end of 2014, an accumulation investor in the Permanent Portfolio, rebalancing annually, would have achieved a compound annual nominal return of 16.7% (IRR=7.8%) with a maximum drawdown of -5.1% over this period. This compares to a compound return of 17.3% (IRR=8.6%) with a maximum drawdown o...
by Call_Me_Op
Sat Mar 14, 2015 7:11 am
 
Forum: Investing - Theory, News & General
Topic: The Permanent Portfolio as an accumulation portfolio
Replies: 16
Views: 2154

Re: How much international is too much?

I think anything up to world cap is OK. I have 50% in international and plan to stay the course.
by Call_Me_Op
Fri Mar 13, 2015 7:18 am
 
Forum: Investing - Theory, News & General
Topic: How much international is too much?
Replies: 113
Views: 9406

Re: Jack Bogle in Investment News

Great article that sums it all up.
by Call_Me_Op
Fri Mar 13, 2015 7:16 am
 
Forum: Local Chapters and Bogleheads Community
Topic: Jack Bogle in Investment News
Replies: 3
Views: 729

Re: Adding Central Air Conditioning to very old home.

I had no duct work and had a standard Carrier 13 SEER system installed in 2005. I have been thrilled with it. The ducts are flexible. I only had to give-up a small amount of closet space - a good trade-off. The alternative was a "high velocity system", which I heard are noisy. I like my ni...
by Call_Me_Op
Thu Mar 12, 2015 6:46 am
 
Forum: Personal Consumer Issues
Topic: Adding Central Air Conditioning to very old home.
Replies: 20
Views: 1535

Re: what's missing?

Investing is not an exact science, so any suggestions to your proposed line-up will be based on individual taste as much as anything else.
by Call_Me_Op
Thu Mar 12, 2015 6:36 am
 
Forum: Investing - Help with Personal Investments
Topic: what's missing?
Replies: 7
Views: 714

Re: Protect rollover IRA from potential lawsuit

I would not use an umbrella policy in place of ERISA protection.
by Call_Me_Op
Wed Mar 11, 2015 7:07 am
 
Forum: Investing - Help with Personal Investments
Topic: Protect rollover IRA from potential lawsuit
Replies: 41
Views: 4224

Re: Where to retire in New England?

Depends upon your preferences. Do you want to be near a big city? Do you ski? etc.
by Call_Me_Op
Wed Mar 11, 2015 7:03 am
 
Forum: Personal Consumer Issues
Topic: Where to retire in New England?
Replies: 101
Views: 7781
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