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Re: Age in Stocks: Should you have a Reverse Glidepath?

Of course a lot depends on the sequence of future equity returns, your financial position at the start of retirement, your retirement drawdown needs, your medical expense/insurance coverage etc. Over the long run equities should return more than a balanced portfolio. That fact tends to creep into &q...
by Dandy
Mon Sep 01, 2014 3:11 pm
 
Forum: Investing - Theory, News & General
Topic: Age in Stocks: Should you have a Reverse Glidepath?
Replies: 21
Views: 1189

Re: struggling to understand "bond crash"

crash is a relative term much more applicable to equities than most bonds. When interest rates rise people want the higher yielding Treasuries not the ones your fund holds. So the market value of the lower yielding Treasuries drops a bit. Fund have to reflect the lower value in their Net Asset Value...
by Dandy
Mon Sep 01, 2014 2:47 pm
 
Forum: Investing - Help with Personal Investments
Topic: struggling to understand "bond crash"
Replies: 8
Views: 1089

Re: Poor Janus, a look at this once high flying fund family

In my dumb old days I had a bit on money in Janus Venture (small cap). Luckily I got out way before they had management fall out and other problems and saw the index fund light. :happy
by Dandy
Mon Sep 01, 2014 7:53 am
 
Forum: Investing - Theory, News & General
Topic: Poor Janus, a look at this once high flying fund family
Replies: 62
Views: 5803

Re: Thoughts on California Municipal Bond Funds

I would not put all my muni eggs in my state muni basket. Most times states muddle through but California has its challenges, drought being the latest and a .25 extra yield doesn't seem worth it to me. Having some in same state fund is ok but I'd be wary of 100% if the assets involved are large.
by Dandy
Mon Sep 01, 2014 7:49 am
 
Forum: Investing - Theory, News & General
Topic: Thoughts on California Municipal Bond Funds
Replies: 32
Views: 2500

Re: A Primer on John Templeton

I assume he was a pioneer and savvy investor. His funds were also expensive to own so he forgot to mention "charge a lot to manage other people's money" . The Templeton Foreign Fund Class A has a maximum initial sales charge or 5.75%, a 1.19% expense ratio and .25 12b-1 fee. Class C of the...
by Dandy
Mon Sep 01, 2014 7:45 am
 
Forum: Investing - Theory, News & General
Topic: A Primer on John Templeton
Replies: 28
Views: 2051

Re: The Power of Zero: [Book and tax planning for retirement

As pointed out tax laws change. It makes sense to have some tax free (Roth, muni), tax deferred (TIRA, I bonds) and taxable. Basing your whole investment strategy on future taxes and tax laws doesn't appear wise. There is nothing to prevent the taxation of Roth distributions, muni bond interest or a...
by Dandy
Mon Sep 01, 2014 7:23 am
 
Forum: Investing - Theory, News & General
Topic: The Power of Zero: [Book and tax planning for retirement]
Replies: 51
Views: 4624

Re: bonds in taxable. which fund?

I have some in intermediate muni and some in LTD term Tax exempt. Both are good funds. I would hesitate to go for much longer duration.
by Dandy
Sun Aug 31, 2014 12:17 pm
 
Forum: Investing - Help with Personal Investments
Topic: bonds in taxable. which fund?
Replies: 6
Views: 546

Re: Should I fix a "totaled" car

I vote no. Forget your love of the car to me it is about financial and safety concerns. Fixing up a car with 130,000 (even if loved) sounds like a bad investment. Put the money toward a newer, safer car that will earn your love for many more years to come.
by Dandy
Sat Aug 30, 2014 9:33 am
 
Forum: Personal Consumer Issues
Topic: Should I fix a "totaled" car
Replies: 32
Views: 2185

Re: Debating whether to keep current vehicle or purchase ano

My views on cars has changed - I used to try to drive them into the ground and hold them for at least 10 years. I think I focused too much on saving money vs safety and comfort. I do own a 2004 Civic that my wife drives around town so I haven't changed completely. But, I recently bought a 2014 Subar...
by Dandy
Sat Aug 30, 2014 9:27 am
 
Forum: Personal Consumer Issues
Topic: Debating whether to keep current vehicle or purchase another
Replies: 41
Views: 1963

Re: Resetting Equity Target -a.k.a Portfolio Allocation

Nice job of having a great nest egg and zero debt. There are a lot of things you need to consider before you decide on what risk you have to take - if any. 1. You need to estimate your monthly/yearly retirement expenses 2. What will be your retirement income when you retire and any increases e.g. fr...
by Dandy
Sat Aug 30, 2014 9:05 am
 
Forum: Investing - Help with Personal Investments
Topic: Resetting Equity Target -a.k.a Portfolio Allocation
Replies: 19
Views: 1135

Re: [Sell off individual stocks?] How many own zero/few stoc

owned very few individual stocks in the past none now. I was "fortunate" to be able to sell positions during the 2008-9 crash to limit taxable gains. I would not sell large cap gain stocks to go to total stock market under most conditions. I would just invest in proper index funds going fo...
by Dandy
Sat Aug 30, 2014 8:34 am
 
Forum: Investing - Help with Personal Investments
Topic: [Sell off individual stocks?] How many own zero/few stocks?
Replies: 68
Views: 2682

Re: Questions: Target 2035/Three fund portfolio

I like the 3 fund portfolio but am not slavish devotee. I believe the VG Target date funds, especially the far dated ones, are too aggressive. I also believe that they were introduced after Mr. Bogle was not longer active. In any event, they were introduced with a less aggressive allocation and then...
by Dandy
Thu Aug 28, 2014 8:02 am
 
Forum: Investing - Help with Personal Investments
Topic: Questions: Target 2035/Three fund portfolio
Replies: 8
Views: 610

Re: AA of 60/40 for your Lifetime?

There is no set it and forget it allocation that would apply to most. Need and ability to take risk vary widely among people and many times for each individual. A Target Date fund chosen at age 25 may not be right when that person reaches age 55. A life strategy fund at 60/40 might be needlessly agg...
by Dandy
Wed Aug 27, 2014 11:39 am
 
Forum: Investing - Help with Personal Investments
Topic: AA of 60/40 for your Lifetime?
Replies: 27
Views: 2307

Re: International allocation

You have to be careful about percentages - is it the percent of the portfolio or the percent of your equities. I think the percent of portfolio better shows the amount of risk/exposure you are taking. I am in early retirement and have 42% equities. 11% of my portfolio is in international equities. T...
by Dandy
Wed Aug 27, 2014 8:38 am
 
Forum: Investing - Theory, News & General
Topic: International allocation
Replies: 73
Views: 4129

Re: Really dumb question from a newbie. passive investing

You have the basic point. As noted rebalancing is probably a given as you don't want to have your portfolio allocation drift too far. You should also decide when/if to moderate your level of risk as you age or life circumstances significantly change. For tax purposes you want to locate fixed income ...
by Dandy
Wed Aug 27, 2014 8:25 am
 
Forum: Investing - Theory, News & General
Topic: Really dumb question from a newbie. passive investing
Replies: 6
Views: 774

Re: Changing AA from 90/10 to 80/20

I tend to be a more moderate risk taker than most. 90 and 80% are both aggressive. If you started your investing in 2013 you have had the benefit of a strong equity market. That can do a lot to make people comfortable with risk. I would suggest that 80% might be a better equity allocation - many &qu...
by Dandy
Wed Aug 27, 2014 8:06 am
 
Forum: Investing - Help with Personal Investments
Topic: Changing AA from 90/10 to 80/20
Replies: 6
Views: 979

Re: What 5 stocks can I own forever?

So when Warren and Charlie retire or die there is no unusual risk in BH stock? I know they have a decentralized management approach but I believe they added significant value not to leave a large hole. Anyhow, it is a bit of a risk that instead of being an investment model they will just be a conglo...
by Dandy
Tue Aug 26, 2014 10:39 am
 
Forum: Investing - Help with Personal Investments
Topic: What 5 stocks can I own forever?
Replies: 58
Views: 4436

Re: strategy to get brokerage bonuses

It is a bit like the free dinner offered for attending the retirement presentation. A certain percentage that go for just the free dinner end up paying a heavy price. So, anytime there is an attractive bonus you really need to not get ensnared by fine print gotchas or being lured into products or se...
by Dandy
Tue Aug 26, 2014 7:35 am
 
Forum: Personal Finance (Not Investing)
Topic: strategy to get brokerage bonuses
Replies: 50
Views: 3059

Re: Telling my friends I paid off my house was a mistake.

Living a bit below your means and limiting or reducing debt generally makes people feel you are not as successful as you really are. After all you may drive an older car, avoided re doing the kitchen and don't have the latest home entertainment toys. On the other hand those who a spenders often look...
by Dandy
Tue Aug 26, 2014 7:29 am
 
Forum: Personal Finance (Not Investing)
Topic: Telling my friends I paid off my house was a mistake.
Replies: 73
Views: 10160

Re: Juice up your cash returns (!) [What do you consider cas

These are the types of investments that are created, packaged and or touted by financial firms to try to tap into the yearn for a better return on "safe" investments. I've seen this show before and it usually ended badly. People are afraid of bonds, think stocks are too high and that norma...
by Dandy
Tue Aug 26, 2014 7:11 am
 
Forum: Investing - Theory, News & General
Topic: Juice up your cash returns (!) [What do you consider cash?]
Replies: 11
Views: 2173

Re: What 5 stocks can I own forever?

Really there are some great companies but with the pace of change and global competition I doubt you could pick many stocks that are buy and hold forever (or even for 3 or 4 decades). The good old days of blue chips seem far away.
by Dandy
Tue Aug 26, 2014 6:56 am
 
Forum: Investing - Help with Personal Investments
Topic: What 5 stocks can I own forever?
Replies: 58
Views: 4436

Re: 100% stock AA-> At what age to add bonds?

age is bonds is a pretty good rule of thumb or in other words a good starting point. If you have the risk tolerance or need to be more aggressive fine. If you don't have a need to take more risk or are unsure of your risk tolerance then age in bonds isn't a bad starting point. At 22 that would mean ...
by Dandy
Mon Aug 25, 2014 4:01 pm
 
Forum: Investing - Theory, News & General
Topic: 100% stock AA-> At what age to add bonds?
Replies: 58
Views: 3677

Re: 100% stock AA-> At what age to add bonds?

Age in bonds is still a pretty good starting point . We should all ask ourselves if we vary from this rule of thumb by much - why. Should have a good reason. I'm not sure having a strong stomach is good enough reason. I'd say once you reach 30 or so this decision becomes more critical. Earlier than ...
by Dandy
Mon Aug 25, 2014 7:04 am
 
Forum: Investing - Theory, News & General
Topic: 100% stock AA-> At what age to add bonds?
Replies: 58
Views: 3677

Re: Backyard Shed

I would go for a slightly bigger shed than you think you need. Ist shed was destroyed by a tree so I made the replacement the next size and it was much better. Also, I sort of divided my 1st shed and regretted it. It made two smaller "rooms" and I found that flexibility of space was more i...
by Dandy
Sun Aug 24, 2014 8:47 am
 
Forum: Personal Consumer Issues
Topic: Backyard Shed
Replies: 21
Views: 1443

Re: Saving for a car

I like that you are saving ahead of time. Investing in an intermediate bond fund is ok but you have to take some risk, especially with rates so low, that instead of gaining money you will be subject to having a loss. That may delay your plans. Most times short term savings are better off by just ban...
by Dandy
Sun Aug 24, 2014 8:27 am
 
Forum: Investing - Help with Personal Investments
Topic: Saving for a car
Replies: 20
Views: 1593

Re: taxable accounts

You have not identified the goal of this money. Saving for a house?, long term supplement to retirement? I'll assume it is a longer term goal and you are above the 15% tax bracket. You can use the three fund portfolio with VG intermediate Tax Free fund replacing the Total Bond fund. So Total Stock, ...
by Dandy
Sun Aug 24, 2014 8:15 am
 
Forum: Investing - Help with Personal Investments
Topic: taxable accounts
Replies: 4
Views: 726

Re: I need "Ultra High Net Worth" investing advice please

If you have children you might want to visit a good lawyer/estate planner to discuss options like trusts and a good tax lawyer to avoid unnecessary taxes. It may seem silly but what are your goals? Do you want to invest in another business, become a land baron, run for office, help a special charity...
by Dandy
Sun Aug 24, 2014 8:07 am
 
Forum: Investing - Help with Personal Investments
Topic: I need "Ultra High Net Worth" investing advice please
Replies: 215
Views: 15344

Re: Defining "Stay the Course"

Significant life events should warrant a review of your investment approach. Your move was based on a significant event not a prediction of the market. Also, moving 4% of your portfolio from a higher risk bond fund to an intermediate risk bond fund is relatively minor in the scheme of things. When I...
by Dandy
Sat Aug 23, 2014 8:19 am
 
Forum: Investing - Theory, News & General
Topic: Defining "Stay the Course"
Replies: 41
Views: 3650

Re: How to weather market downturn with a high chance of lay

You set your portfolio allocation and then if a life changing event happens or is very likely - like a lay off then you need to adjust your approach. I was in a high probability of layoff in 2008. I kept a higher cash position/eliminated debt. Banked bonus, stopped buying company stock, cut back a b...
by Dandy
Sat Aug 23, 2014 7:35 am
 
Forum: Investing - Theory, News & General
Topic: How to weather market downturn with a high chance of layoff
Replies: 42
Views: 3185

Re: Bad(?) advice given about Target Date Retirement funds

I believe that comment was made relating to a very, very hands off investing "friend" and the risk in that one case was that the hands off friend would not have a glide path as he aged. Of course any suggestion is only as good as the detailed information supplied. If the only choices were ...
by Dandy
Thu Aug 21, 2014 4:47 pm
 
Forum: Investing - Theory, News & General
Topic: Bad(?) advice given about Target Date Retirement funds
Replies: 103
Views: 6378

Re: Do we plunder our retirement to pay off student debt?

any reasonable approach to pay off the education debt is probably good. Since the interest rates are so close I would opt for paying off the smaller debt thus freeing up extra monthly income immediately and then pay down the larger loan with the balance of the lump sum and extra monthly income. I do...
by Dandy
Thu Aug 21, 2014 4:12 pm
 
Forum: Investing - Help with Personal Investments
Topic: Do we plunder our retirement to pay off student debt?
Replies: 30
Views: 2606

Re: Which Vanguard BOND Fund ?

as pointed out corporate bonds/funds have higher risk so they should pay a higher return. So, I think you are chasing yield because your thinking return % rather than risk. If you were thinking I need to take a bit more risk on the fixed income side - hey what about the Corporate bond fund - then yo...
by Dandy
Thu Aug 21, 2014 4:03 pm
 
Forum: Investing - Help with Personal Investments
Topic: Which Vanguard bond Fund ?
Replies: 36
Views: 3165

Re: To be truly rich, take stock of your life before investi

For me it was always about securing our finances then maintaining/hopefully gradually improving our standard of living. By securing finances mean able to weather things like jobs losses (had 2), serious costly illnesses (had 1), raising and educating children (had 2) and funding a long retirement wi...
by Dandy
Thu Aug 21, 2014 9:00 am
 
Forum: Investing - Theory, News & General
Topic: To be truly rich, take stock of your life before investing
Replies: 30
Views: 4502

Re: Convincing fears on investing for now?

Almost all of us have concerns but many have learned to basically ignore them because we have had the same concerns in the past and the market does what it does. It goes up and down and it is impossible to predict what it will do next. These fears or gut feelings are often fed by the media. That bei...
by Dandy
Wed Aug 20, 2014 8:45 am
 
Forum: Investing - Help with Personal Investments
Topic: Convincing fears on investing for now?
Replies: 33
Views: 3326

Re: Should we switch our TIPS fund?

I don't believe the Short term TIPS fund has a purchase fee. I believe it used to. I went on the VG site and couldn't find that fee. I have a decent allocation to the TIPS fund and smaller allocation to Short Term TIPs. No deep thought just a bit of duration diversity. If you are concerned about ass...
by Dandy
Mon Aug 18, 2014 4:33 pm
 
Forum: Investing - Help with Personal Investments
Topic: Should we switch our TIPS fund?
Replies: 49
Views: 5407

Re: Rebalance + stay the course ... or dial it down on stock

I feel 90% is too high for almost anyone. Why do you need to be so aggressive? If the thought of another major downturn has you worried maybe it is time to reduce the risk. Most times you should only take the risk you need to.
by Dandy
Mon Aug 18, 2014 5:45 am
 
Forum: Investing - Help with Personal Investments
Topic: Rebalance + stay the course ... or dial it down on stocks
Replies: 10
Views: 1910

Re: Berkshire Hathaway - Warren Buffett - Anyone own the sto

No - not into individual stocks. Really like Buffet but wonder how well the stock will do when he and Charlie are no longer calling the shots. But, even if there were young guns I'll stick with index funds.
by Dandy
Sun Aug 17, 2014 10:59 am
 
Forum: Investing - Theory, News & General
Topic: Berkshire Hathaway - Warren Buffett - Anyone own the stock?
Replies: 110
Views: 9538

Re: 100% lifestrategy - good idea for a hands-off investor?

Since he is a committed hands off investor he is unlikely to adjust his portfolio as he ages. If that makes sense to him - you might want to consider a Target Date fund that fits his current risk tolerance. That way he can stay hands off.
by Dandy
Sun Aug 17, 2014 10:49 am
 
Forum: Investing - Help with Personal Investments
Topic: 100% lifestrategy - good idea for a hands-off investor?
Replies: 28
Views: 3302

Re: Poll for 65+ Seniors

age 66 - 42% equities - goal of 40% at age 70
by Dandy
Sun Aug 17, 2014 10:46 am
 
Forum: Investing - Help with Personal Investments
Topic: Poll for 65+ Seniors
Replies: 51
Views: 5714

Re: Windfall and fiduciary recommendations

I think your instincts are correct - there is a tendency to follow the herd i.e. what your partner or other newly wealthy are doing. You made no mention of the fees - I'll bet they are substantial. You probably do need some great tax and estate advice. You should get some feeling like a sheep headin...
by Dandy
Sun Aug 17, 2014 10:43 am
 
Forum: Investing - Help with Personal Investments
Topic: Windfall and fiduciary recommendations
Replies: 18
Views: 1489

Re: Spouse not ready to cut ties with financial advisers

Ugh - having friends or family as investment advisors. Always a potential ugly problem. In the advisors defense (possibly) not being active in buying and selling (aka churning) may not be a bad signal - after all the front end funds they put you in are probably actively managed. No excuse for allowi...
by Dandy
Sun Aug 17, 2014 10:04 am
 
Forum: Investing - Help with Personal Investments
Topic: Spouse not ready to cut ties with financial advisers
Replies: 112
Views: 8739

Re: Composition Stability of Vanguard IT Bond Index (VBILX)

I have a healthy six-figure holding of VBILX. I feel no compulsion to look under the hood I don't think there is any need to worry. But any 6 figure investment would make me curious. Mr. Bogle expressed concerns about Total Bond having too much Government and too little Corporate. The flight to qua...
by Dandy
Sat Aug 16, 2014 5:40 pm
 
Forum: Investing - Theory, News & General
Topic: Composition Stability of Vanguard IT Bond Index (VBILX)
Replies: 6
Views: 642

Re: help with Moms free cash reserves

Ally Bank, Discover Bank and Barclays Bank all have online savings accounts that pay just less than 1%. Not great but FDIC and better than .01% I have some of my yearly retirement drawdown money at Discover Bank. It pays .85% on its savings account. I set up to withdraw $X each month to go to my reg...
by Dandy
Sat Aug 16, 2014 5:17 pm
 
Forum: Investing - Help with Personal Investments
Topic: help with Moms free cash reserves
Replies: 8
Views: 760

Re: Market Timing?

Market timing is used or overused as a naughty word. You could say that staying the course is market timing because you are predicting that the market will recover or progress based on past performance. That is silly. Classic market timing has a lot of activity and a lot of educated or not so educat...
by Dandy
Sat Aug 16, 2014 9:47 am
 
Forum: Investing - Theory, News & General
Topic: Market Timing?
Replies: 20
Views: 1233

Re: Monthly Contributions - Asset Allocation

I would make your contributions agree with your target allocation. Adjust your contributions as part of your rebalancing if you need to. e.g. if you can rebalance and avoid a taxable event. I'm not a fan of equity allocations above 75 or 80%. There have been a lot of more recent suggestions by respe...
by Dandy
Sat Aug 16, 2014 8:41 am
 
Forum: Investing - Help with Personal Investments
Topic: Monthly Contributions - Asset Allocation
Replies: 10
Views: 693

Re: Do you diversify into international bond?

Not yet -- at least as a separate product. There is a small allocation in Total Bond. I don't understand enough about the risks/benefits and need. At a time of low yields it is tempting to jump into "new" fixed income products -- when I get that feeling I usually move away from the ledge a...
by Dandy
Sat Aug 16, 2014 8:33 am
 
Forum: Investing - Help with Personal Investments
Topic: Do you diversify into international bond?
Replies: 33
Views: 2224

Re: Should I Invest in both T-IRA & R-IRA?

When both alternatives have merit I usually decide to do some of both. TIRA reduces current taxes and Roth reduces future taxes. I would load up the Roth with mostly equity allocation and the load up my TIRA with mostly fixed income allocations. If you are lucky at retirement you will have a nice am...
by Dandy
Sat Aug 16, 2014 8:23 am
 
Forum: Investing - Help with Personal Investments
Topic: Should I Invest in both T-IRA & R-IRA?
Replies: 34
Views: 1297

Re: Starting a Lazy Portfolio Now

know one knows if it is a good time or a bad time to get in now. If you are concerned then put some money to work at your target allocation now and automate DCA to those funds the balance over the next 6-9 months. When the market is at a high or has had several years of very good gains I would do le...
by Dandy
Fri Aug 15, 2014 8:27 am
 
Forum: Investing - Theory, News & General
Topic: Starting a Lazy Portfolio Now
Replies: 21
Views: 3533

Re: “The more I learn, the more I realize how much I don't k

Our investment goal: Offer protection against unexpected life events and to principally maximize our (grand) children’s inheritance . These are or seem to be conflicting goals - protection and maximize don't go together for the same portfolio. So you need to make up your mind and decide on one goal...
by Dandy
Fri Aug 15, 2014 7:34 am
 
Forum: Investing - Help with Personal Investments
Topic: “The more I learn, the more I realize how much I don't know"
Replies: 18
Views: 1923

Re: Deferred Income Annuity

Or a Prudential term life policy that pays most of the face value if you are confined to a nursing home for at least 6 months, with no prospect of leaving alive. True the "living needs benefit" can come in handy especially if you bought the term policy early. Buying term at retirement age...
by Dandy
Thu Aug 14, 2014 9:43 pm
 
Forum: Personal Finance (Not Investing)
Topic: Deferred Income Annuity
Replies: 9
Views: 847
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