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Re: Stop contributing to 401k to pay off CC

I would hate to give up the match. You get the match and what the match earns until you withdraw -- that could be decades depending on your age. Tighten you spending or find a better credit card transfer deal if you can. If necessary lose some of the 50% match but not the 100% match.
by Dandy
Sun Dec 21, 2014 10:51 am
 
Forum: Investing - Help with Personal Investments
Topic: Stop contributing to 401k to pay off CC
Replies: 21
Views: 1145

Re: What "actively" managed funds do you own?

Wellesley Fund at less than 1% is the most "active" of any active funds I own. Vg has a number of funds that are technically not index funds but are low cost or broad based and/or have low turnover. To lump them in the Active fund category would be misleading. I do own TIPs fund but don't ...
by Dandy
Sun Dec 21, 2014 10:36 am
 
Forum: Investing - Help with Personal Investments
Topic: What "actively" managed funds do you own?
Replies: 75
Views: 3272

Re: Vanguard cd question [Brokered CDs]

I did not know much or care much about CDs not to mention brokerage CDs. Why would I? I was in the mutual fund industry and in the accumulation phase for 20+years. There were little or no articles about using CDs as part of your retirement allocation nor were they available in most 401k plans - most...
by Dandy
Fri Dec 19, 2014 11:37 am
 
Forum: Investing - Theory, News & General
Topic: Vanguard cd question [Brokered CDs]
Replies: 25
Views: 3153

Re: Bond Fund vs CDs - which to use?

Lots of debate on this issue and whether anyone needs to diversify their fixed income holdings. Can interest rates go lower? Sure, the Swiss just instituted a 1/2% negative return on savings, I believe Crete did something that resulted in negative yields on their savings during the recent crisis. So...
by Dandy
Fri Dec 19, 2014 11:19 am
 
Forum: Investing - Theory, News & General
Topic: Bond Fund vs CDs - which to use?
Replies: 51
Views: 3625

Re: What is your opinion about "tilting?"

I have decent tilts to Value Index and Small Cap Index funds that equal about 6% of my total portfolio. Both have done well over the years. I would sell my very good performing Small Cap Index fund but it is in my taxable account so it would mean a large cap gain. I'm sticking with Value Index in my...
by Dandy
Fri Dec 19, 2014 10:41 am
 
Forum: Investing - Theory, News & General
Topic: What is your opinion about "tilting?"
Replies: 116
Views: 8766

Re: Schwab Intelligent Portfolios

It does seem to be a game changer. A brand name firm that has a good reputation an no costs? beyond low cost index ETFs? I'll be following this development with interest. Hopefully, VG's new product with 30bps will eventually be more competitive after it launches full bore. I am looking for an accou...
by Dandy
Fri Dec 19, 2014 10:31 am
 
Forum: Investing - Theory, News & General
Topic: Schwab Intelligent Portfolios
Replies: 13
Views: 1295

Re: Should I sell my stocks & bonds?

I have EE Bonds that are paying 4% with no state tax liability. So, check on Treasury Direct what you EE bonds are paying. You might be in better shape as far as risk/reward than most bond funds or CDs. Individual stocks are a different matter. I would advise getting out of them. No super rush but i...
by Dandy
Fri Dec 19, 2014 10:11 am
 
Forum: Investing - Help with Personal Investments
Topic: Should I sell my stocks & bonds?
Replies: 12
Views: 1536

Re: CD or Treasury ladder trade-off

The CD market whether brokerage, local brick or remote/online is not as efficient as Treasuries. There are wide differences in interest rate for essentially the same product (especially if held to maturity). Some banks are paying 1% more than others for the same term CD. It may be a bit more work th...
by Dandy
Fri Dec 19, 2014 10:07 am
 
Forum: Investing - Help with Personal Investments
Topic: CD or Treasury ladder trade-off
Replies: 29
Views: 1546

Re: allocation strategy across roth IRA, trad 401k, and taxa

In general I like to keep both equities and fixed income in all accounts. Heavier equity allocations to Taxable and Roth (say 80/20), heavier fixed income allocation in TIRA (say 30/70).
by Dandy
Fri Dec 19, 2014 9:53 am
 
Forum: Investing - Help with Personal Investments
Topic: allocation strategy across roth IRA, trad 401k, and taxable
Replies: 5
Views: 529

Re: Why a Boglehead doesn't invest in individual companies?

In the early 2000's I was in my mid 50's and getting some attractive bonuses. After, 9/11 I used to walk to the office from the train station with my firm"s local branch manager.We talked about office politics, company benefits and investments - he became an business friend and my broker. Wasn'...
by Dandy
Wed Dec 17, 2014 4:16 pm
 
Forum: Investing - Help with Personal Investments
Topic: Why a Boglehead doesn't invest in individual companies?
Replies: 57
Views: 5223

Re: Buying Vanguard Energy Index

I would consider it if it is a minor allocation for a tactical play. I would do it in a tax advantaged account. And I would do it if you plan to hold it for at least a few years. I recently sold my small allocation to VG Energy Fund because I wanted to simplify my portfolio, needed the funds for dis...
by Dandy
Wed Dec 17, 2014 9:44 am
 
Forum: Investing - Help with Personal Investments
Topic: Buying Vanguard Energy Index
Replies: 22
Views: 2653

Re: Soon To Retire - Portfolio Advice

If some holdings have substantial gains that can't be offset you might consider selling some of those in December and the balance in January just to have the gains hit in two different tax years. Aside from that I guess if the plan is to sell all then the sooner the better.
by Dandy
Wed Dec 17, 2014 9:31 am
 
Forum: Investing - Help with Personal Investments
Topic: Soon To Retire - Portfolio Advice
Replies: 11
Views: 1826

Re: Does 80/20 have more risk or volatility than 60/40?

You can't get around that stocks are more risky and therefore should offer a better long term returns. So, holding a high allocation of equities over a long term should result in higher values -- most of the time. Of course at any time or even several times during decades long investing you might se...
by Dandy
Sun Dec 14, 2014 11:10 am
 
Forum: Investing - Theory, News & General
Topic: Does 80/20 have more risk or volatility than 60/40?
Replies: 25
Views: 2664

Re: AA and Pension?

Knowing you have a decent pension coming to you is a great benefit. It allows you to take more risk than you might normally consider. It really gets back to how much risk do you actually want to take. You have outlined a fairly aggressive and simple portfolio. Only you can decide if a pension should...
by Dandy
Sun Dec 14, 2014 10:39 am
 
Forum: Investing - Help with Personal Investments
Topic: AA and Pension?
Replies: 31
Views: 2820

Re: I'm an Irrational Bond Chicken Little

there are a lot of people that feel you don't need to diversify your fixed income investments. Lots of support for just using the Total Bond fund. It tends to be the sweet spot of fixed income i.e. modest risk with competitive yield. The risk is nothing like the risk of equities. But, a prolonged ti...
by Dandy
Sun Dec 14, 2014 10:30 am
 
Forum: Investing - Help with Personal Investments
Topic: I'm an Irrational Bond Chicken Little
Replies: 32
Views: 2941

Re: (Poll) Did you tap into emergency fund in the past 10 ye

HELOC and credit card are useful to have in almost any emergency since they provide options. If an emergency occurs in a black swan event maybe they won't be available. I've had an HELOC and credit cards for about 40 years and never had them taken away. So, while it might happen those instances woul...
by Dandy
Sat Dec 13, 2014 6:04 pm
 
Forum: Personal Finance (Not Investing)
Topic: (Poll) Did you tap into emergency fund in the past 10 years?
Replies: 56
Views: 4043

Re: Energy sector

We commonly hear that individual investors panic and sell when there is a large drop in equities. People panic and out of fear sell that is often a significant part of the "market". We often hear you should buy when there is blood on the street. But, when there is a severe market drop and ...
by Dandy
Sat Dec 13, 2014 2:07 pm
 
Forum: Investing - Theory, News & General
Topic: Energy sector
Replies: 55
Views: 4192

Re: Totally Stressed. Husband lost job.

Unfortunately, job losses are happening even from supposedly secure jobs. The economy and job picture is picking up so hopefully your husband's earnings will be more secure even if he doesn't win at arbitration. When this type of emergency hits it affects the whole family in many ways. The loss of s...
by Dandy
Sat Dec 13, 2014 12:49 pm
 
Forum: Personal Finance (Not Investing)
Topic: Totally Stressed. Husband lost job.
Replies: 28
Views: 6359

Re: (Poll) Did you tap into emergency fund in the past 10 ye

I didn't complete the poll since never had funds allocated to an emergency fund. I always had a decent allocation to liquid assets as part of my investment strategy and options like HELOC and credit cards to cover "emergencies" short term. I have been lucky that despite some emergencies e....
by Dandy
Sat Dec 13, 2014 12:29 pm
 
Forum: Personal Finance (Not Investing)
Topic: (Poll) Did you tap into emergency fund in the past 10 years?
Replies: 56
Views: 4043

Re: Is monthly rebalancing too frequent?

Yes because it isn't necessary and drives up fund costs for other shareowners. Fund prices jiggle a lot and you would probably be making lots of useless moves. Also, Vanguard limits frequent trading for many? all? funds. Maybe you should consider a balanced fund that essentially balances daily.
by Dandy
Sat Dec 13, 2014 12:09 pm
 
Forum: Investing - Theory, News & General
Topic: Is monthly rebalancing too frequent?
Replies: 26
Views: 1507

Re: Soon To Retire - Portfolio Advice

1. I was planning on funding the delta in retirement from savings for a while but now from what I am reading should I start drawing down from my Traditional IRA because of RMD implications at 70 instead . That is a fairly important decision. I would use a RMD calculator, Fidelity has one (they call ...
by Dandy
Sat Dec 13, 2014 11:55 am
 
Forum: Investing - Help with Personal Investments
Topic: Soon To Retire - Portfolio Advice
Replies: 11
Views: 1826

Re: Self-Managed All-Seasons Risk-Parity Allocation?

Your portfolio and allocation are fine. If tony got you off the bench and investing that is to his credit - after all he is known as a motivational expert - not an investment expert. Just don't think you have some magic portfolio that is somehow safe yet productive for the rest of your life. That pa...
by Dandy
Sat Dec 13, 2014 10:48 am
 
Forum: Investing - Help with Personal Investments
Topic: Self-Managed All-Seasons Risk-Parity Allocation?
Replies: 10
Views: 1151

Re: Some higher rates available on Brokered CDs

I've been tracking (and buying) VG brokerage CDs for a few years. Their 5, 7, and 10 yr brokerage CDs are more than competitive with most bank CDs (and well as individual Treasuries) and have been that way for awhile. However, their shorter term CDs are easily beat by many brick and online banks if ...
by Dandy
Sat Dec 13, 2014 10:30 am
 
Forum: Investing - Help with Personal Investments
Topic: Some higher rates available on Brokered CDs
Replies: 2
Views: 582

Re: Energy sector

I recently sold a small amount of the VG Energy fund I bought in my taxable account many years ago. That purchase was made before I was more savvy on where to put investments etc. When the sector market plunges like oil it is often an overreaction and feeds upon itself. If I were young and had a bit...
by Dandy
Sat Dec 13, 2014 10:14 am
 
Forum: Investing - Theory, News & General
Topic: Energy sector
Replies: 55
Views: 4192

Re: Vanguard Wish List

I wish Vanguard would own or partner with a bank to offer Money market/savings options instead of just Prime. It would be nice if their Advantage Account would pay like a bank so I could use it as my major checking account. I also wish Vanguard would withhold taxes on any distribution, exchange, red...
by Dandy
Thu Dec 11, 2014 8:30 am
 
Forum: Investing - Theory, News & General
Topic: Vanguard Wish List
Replies: 44
Views: 2991

Re: Don't Peek

I realize that many people will have a problem if they look at their investments frequently. Depression, fear, urge to do something etc. But, I think that the seemingly off the cuff advice of not looking at your 401k balance for --- years, until you retire etc is bad advice. If you are that affected...
by Dandy
Thu Dec 11, 2014 8:25 am
 
Forum: Investing - Theory, News & General
Topic: Don't Peek [at Your Portfolio Balance]
Replies: 33
Views: 3893

Re: Adjust Post-Crash Bond Allocation?

70% equities is fairly aggressive. After a market correction and you rebalance back to 70% you should do well. What is prompting you to go from rebalancing to 70% to going to 100%? Greed? Do you plan to stay at 100% once that is done? There have been nice bounce backs from recent market plunges - th...
by Dandy
Thu Dec 11, 2014 8:15 am
 
Forum: Investing - Theory, News & General
Topic: Adjust Post-Crash Bond Allocation?
Replies: 23
Views: 1606

Re: Why don't YOU follow Buffett's advice?

First of all that was for his wife who I assume is well into retirement. Really he could have put it all into short term Treasuries and she wouldn't have run out in several lifetimes. So, it really isn't for her it is for her estate. I don't allocate 90% to equities because of my risk tolerance and ...
by Dandy
Thu Dec 11, 2014 7:53 am
 
Forum: Investing - Theory, News & General
Topic: Why don't YOU follow Buffett's advice?
Replies: 114
Views: 8126

Re: How to hedge expected inflation?

TIPS are the best but nothing is geared to your regional or personal inflation experience. While you can take some comfort in TIPS, SS, and inflation indexed annuities they have formulas that relate to national baskets of goods and services. Your local/regional experience can be different e.g. rents...
by Dandy
Wed Dec 10, 2014 8:51 am
 
Forum: Investing - Help with Personal Investments
Topic: How to hedge expected inflation?
Replies: 25
Views: 1761

Re: How to hedge expected inflation?

Tips, short term bonds, short term CD ladder, and at least some allocation to equities should help offset most inflation except the most extreme. There isn't a perfect solution. e.g. Social Security is adjusted for inflation but not your specific inflation experience. And most remedies usually lag a...
by Dandy
Tue Dec 09, 2014 3:21 pm
 
Forum: Investing - Help with Personal Investments
Topic: How to hedge expected inflation?
Replies: 25
Views: 1761

Re: Am I being cheap? [wedding/engagement ring]

Unfortunately, the whole engagement/wedding thing is out of control especially on the east and west coast. I'm paying for a daughter's wedding and despite everyone being reasonable it is amazing how much it costs. The ring is almost equated to how much you love your future wife. It is the center of ...
by Dandy
Sun Dec 07, 2014 4:35 pm
 
Forum: Personal Finance (Not Investing)
Topic: Am I being cheap? [wedding/engagement ring]
Replies: 192
Views: 8805

Re: Why do target date funds get so bond heavy?

You have to be careful not to lock into a specific research "finding" and base your whole approach on that. The key is understanding the basis of the research, it's strength and weakness, assumptions etc and how that applies to your specific needs. As I recall the research it was to have e...
by Dandy
Sun Dec 07, 2014 4:24 pm
 
Forum: Investing - Theory, News & General
Topic: Why do target date funds get so bond heavy?
Replies: 39
Views: 2712

Re: Disadvantages of not investing in bonds

In theory you can be in 100% equities when you have 30 years from retirement. After all stocks are supposed to outperform fixed income since that would reward the higher risk. In practice it is often very hard to keep that approach when the market tanks and your hard earned nest egg gets cut in half...
by Dandy
Sun Dec 07, 2014 4:00 pm
 
Forum: Investing - Help with Personal Investments
Topic: Disadvantages of not investing in bonds
Replies: 29
Views: 2536

Re: Start saving for House downpayment using Wellesley?

Wellesley isn't a bad fund, the key is how much of a bother it would be to your life plans if you had to postpone buying a house for a few years? Most safe savings vehicles have a hard time keeping up with inflation and taxes - so you are in a bit of a bind. But, if you want to focus on being able t...
by Dandy
Sun Dec 07, 2014 3:51 pm
 
Forum: Investing - Help with Personal Investments
Topic: Start saving for House downpayment using Wellesley?
Replies: 35
Views: 3089

Re: Roth all the way?

In my mid 60's and was fortunate to save/invest well. The Roth option in my 401k came the last working year. I face having RMDs in a few years that should well exceed my need (nice problem/no complaints). I wish I had the opportunity to split my contributions to T401k and Roth 401k. I did love the r...
by Dandy
Sun Dec 07, 2014 8:42 am
 
Forum: Investing - Help with Personal Investments
Topic: Roth all the way?
Replies: 15
Views: 1220

Re: Nikkei index 20+ years later.

In retirement an approach is a Liability matching portfolio that funds your retirement and a Risk portfolio for the excess. You wouldn't rebalance the LMP, you would drawdown from it each year. The RP could be allocated as you wish and rebalanced if you wish. You could also draw some retirement need...
by Dandy
Sat Dec 06, 2014 11:16 am
 
Forum: Investing - Theory, News & General
Topic: Nikkei index 20+ years later.
Replies: 9
Views: 1603

Re: Pension Lump vs Annunity?

For me the annuity almost always makes sense. But, if it is not inflation indexed then there will be a need to make up the difference from your investments. A good reason to delay SS as long as possible. Making up for a non COLA pension will impact you withdrawals increasingly over time. People ofte...
by Dandy
Fri Dec 05, 2014 4:41 pm
 
Forum: Personal Finance (Not Investing)
Topic: Pension Lump vs Annuity?
Replies: 14
Views: 1378

Re: TIPs, Total Bond Market, or Both?

I use both and more. I could see a nice fixed income portfolio for retiree interested in asset preservation consisting of Total bond, TIPS, Short Term bond and a 5 yr? CD ladder. With the Short term bond and CD ladder providing assets to fund retirement to age 90. a la Wm Bernstein.
by Dandy
Fri Dec 05, 2014 4:32 pm
 
Forum: Investing - Theory, News & General
Topic: TIPs, Total Bond Market, or Both?
Replies: 35
Views: 3472

Re: Bogle puts a bow on it in under 15 minutes

My take: Bogle says he sold his stocks in 2000 in part because he recently had a heart transplant. This in my opinion is a legitimate reason to reassess risk tolerance and change asset allocation. He implied that it was probably pure luck that ridiculously high valuations coincided with the decisio...
by Dandy
Fri Dec 05, 2014 12:37 pm
 
Forum: Investing - Theory, News & General
Topic: Bogle puts a bow on it in under 15 minutes
Replies: 21
Views: 4380

Re: Avoiding lifestyle creep

A little life style creep is ok. I'd split it between paying down the mortgage and investing. But, you are only young once and you need to enjoy some of the fruits of your labor along the way. The fact that you are not considering lifestyle creep means the risk of the creep is minimal. I always live...
by Dandy
Thu Dec 04, 2014 6:20 pm
 
Forum: Personal Finance (Not Investing)
Topic: Avoiding lifestyle creep
Replies: 30
Views: 5439

Re: HELOC as emergency fund

In the accumulation stage of life the emergency fund is critical for the loss of job/disability risk. A HELOC is a poor choice for this risk since you now put your home at risk with an unknown date of return to the earning status. For other types of emergencies e.g. new roof, car repair etc it is a ...
by Dandy
Thu Dec 04, 2014 6:13 pm
 
Forum: Personal Finance (Not Investing)
Topic: HELOC as emergency fund
Replies: 19
Views: 1653

Re: Bogle puts a bow on it in under 15 minutes

So he certainly isn't a market timer except when valuations get so compelling that you can't ignore them. I don't disagree with his approach. But it does set up a contradiction between "stay the course" vs when valuations get too high you don't stay the course. Once you take a "tacti...
by Dandy
Thu Dec 04, 2014 6:07 pm
 
Forum: Investing - Theory, News & General
Topic: Bogle puts a bow on it in under 15 minutes
Replies: 21
Views: 4380

Re: [Poll] What's Your Tax Prep Strategy?

Turbo Tax for years. I found it helpful not only for me but to get my daughters used to doing their tax returns. I "drove" their returns the first year why they looked on and searched through their records. That made them have less fear of doing taxes and sharpened their focus on what reco...
by Dandy
Thu Dec 04, 2014 10:28 am
 
Forum: Personal Finance (Not Investing)
Topic: [Poll] What's Your Tax Prep Strategy?
Replies: 64
Views: 3716

Re: POLL: Should investors have a separate emergency fund?

I guess for most people the answer is yes. The younger you are and more aggressive your investment portfolio the need for a separate EF might be warranted . Also, some people just can't keep their hands off a pile of liquid assets unless it is officially labeled hands off. I was always a moderate ri...
by Dandy
Thu Dec 04, 2014 10:03 am
 
Forum: Investing - Theory, News & General
Topic: POLL: Should investors have a separate emergency fund?
Replies: 58
Views: 3497

Re: What % of your fixed-income is TIPs?

About 22% of TIRA fixed income is TIPS. I have TIPS as part of my plan to keep my large TIRA fixed income assets diversified. I like 4 types of fixed income in my TIRA, TIPS, Intermediate and short term bond funds and a CD ladder.
by Dandy
Thu Dec 04, 2014 9:52 am
 
Forum: Investing - Theory, News & General
Topic: What % of your fixed-income is TIPs?
Replies: 71
Views: 3505

Re: How do you rebalance?

I didn't want to categorize myself as "special" as far as rebalancing. 1. My overall approach is to worry about the equity vs fixed income allocation. (less concerned with sub allocations) 2. My Target allocation is 40% equities by age 70 - when SS and RMDs will start (3+ yrs). Currently, ...
by Dandy
Wed Dec 03, 2014 10:18 am
 
Forum: Investing - Theory, News & General
Topic: How do you rebalance?
Replies: 40
Views: 3154

Re: Early Retirement Roth Conversions

I'm in a somewhat similar situation and am converting some TIRA to Roth. I am doing it because I like the tax free no RMD features of Roth for us and eventually for our children. Also, I am trying to limit the RMD in my TIRA by converting some equity assets so the growth is more in the Roth than the...
by Dandy
Wed Dec 03, 2014 9:32 am
 
Forum: Investing - Help with Personal Investments
Topic: Early Retirement Roth Conversions
Replies: 11
Views: 1398

Re: Retirees: Why worry?

I worried about finances/investments - not in the corner biting my lip but there were things to worry about -- that did come true -- lost my job twice after age 50, wife had a very serious illness, investments have gone through two crashes since 2000, and whatever assumptions I might have made about...
by Dandy
Tue Dec 02, 2014 4:07 pm
 
Forum: Personal Finance (Not Investing)
Topic: Retirees: Why worry?
Replies: 25
Views: 2920

Re: Does the market ever err?

Sure, the market often over reacts to the upside and to the downside. A single tulip once sold for the price of a house. The market is composed of people and people err all the time. A non rigged market is the collective best guess at a value in a point in time. So to determine the value of somethin...
by Dandy
Tue Dec 02, 2014 7:28 am
 
Forum: Investing - Theory, News & General
Topic: Does the market ever err?
Replies: 23
Views: 1655

Re: Best CD rates ...

One point I didn't mention but I learned from this forum is if it is a large amount don't buy a single CD. e.g If you have 100k don't buy 1 5 yr 100k CD. Suppose you only need 20k you will pay the early redemption fee on the whole amount (usually). So buy several 5 yr CDs. e.g. a 5k, 10k, 20K, 30k, ...
by Dandy
Mon Dec 01, 2014 4:43 pm
 
Forum: Investing - Help with Personal Investments
Topic: Best CD rates ...
Replies: 49
Views: 4372
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