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Re: Inflation's impact on retirement savings - confused

You need to look to your savings rate, your ability to live a bit below your means and your allocation. When you get closer you can make somewhat better guesses. I tried to increase savings a bit each year/raise, fell back a bit when I bought a house but started it all over again - pay yourself firs...
by Dandy
Sat Apr 25, 2015 3:08 pm
 
Forum: Investing - Help with Personal Investments
Topic: Inflation's impact on retirement savings - confused
Replies: 16
Views: 1021

Re: Bond allocation-retire in 2 yrs

You will have approximately 40 years in retirement. A suggested starting point is age in bonds (read that fixed income). If you don't have the ability to earn much in retirement you may need a bit more equities than age in bonds. Another way to look at it is what percent can you afford to lose befor...
by Dandy
Sat Apr 25, 2015 10:34 am
 
Forum: Investing - Help with Personal Investments
Topic: Bond allocation-retire in 2 yrs
Replies: 14
Views: 900

Re: Does your LTC carrier do this?

I am a big believer in insurance - worked for a major insurance company for about 30 years but only briefly did some health insurance audits. I would love to have LTC insurance. But I have too many concerns. 1. They don't know how to properly underwrite these policies 2. That is why rates are going ...
by Dandy
Fri Apr 24, 2015 4:37 pm
 
Forum: Personal Finance (Not Investing)
Topic: Does your LTC carrier do this?
Replies: 6
Views: 580

Re: Daycare, nanny, Montessori

My wife taught nursery school - 4yr olds for a about 12 years. Both my grandsons (age 4 and 1.5) attend day care. So my information is second hand. My wife always emphasized that the pre school years were about socialization, learning to follow rules, taking turns, sharing, small muscle development ...
by Dandy
Fri Apr 24, 2015 4:20 pm
 
Forum: Personal Finance (Not Investing)
Topic: Daycare, nanny, Montessori
Replies: 16
Views: 1308

Re: Wife would like employment advice from the Bogleheads

Tough choice. The factor that would make me concerned about switching is that she is happy with her current job and the people. She might want to talk to some current employees at the VA hospital to see how they like it. Take a day off and visit them - . The VA may be under a lot of budget pressure ...
by Dandy
Fri Apr 24, 2015 3:39 pm
 
Forum: Personal Finance (Not Investing)
Topic: Wife would like employment advice from the Bogleheads
Replies: 31
Views: 2937

Re: As Cogntivity Slips, Financial Skills Often the First to

That sure is a worry and I'm sure it may be hard to recognize gradual decline or to admit to it. On the physical side I usually go up on the roof to clean the gutters out - my daughter said that wasn't wise - it made me think just because I've done it for 40 years when would I decide not to do it? W...
by Dandy
Fri Apr 24, 2015 3:26 pm
 
Forum: Personal Finance (Not Investing)
Topic: As Cognition Slips, Financial Skills Often the First to Go
Replies: 22
Views: 1532

Re: How should anticipated inheritance affect asset allocati

I would not factor in inheritance now. As has been said a lot can happen before that happens. I would look into how you and your brother would handle the building you may inherit. Also, you seem to be in good shape. You could possibly ease off savings a bit if you have been extra frugal. I wouldn't ...
by Dandy
Fri Apr 24, 2015 3:15 pm
 
Forum: Investing - Help with Personal Investments
Topic: How should anticipated inheritance affect asset allocation?
Replies: 17
Views: 1177

Re: Anyone have an asset allocation not based on percentages

In the accumulation stage your retirement money is usually better off in stocks while that might not apply to taxable savings e.g. for a deposit on a house or an emergency fund to meet expenses in case you lose your job. In retirement when you are drawing down from your portfolio and have little ear...
by Dandy
Fri Apr 24, 2015 9:32 am
 
Forum: Investing - Theory, News & General
Topic: Anyone have an asset allocation not based on percentages?
Replies: 5
Views: 563

Re: Retirement Allocations

That comes out to about 5.3% initial withdrawal rate which is a bit high. Some feel starting with 4% adjusted following years for inflation is too high given the low interest rates (and high equity market). You are facing about 30 years in retirement. I don't like your portfolio much. Wellesley is g...
by Dandy
Fri Apr 24, 2015 9:21 am
 
Forum: Investing - Theory, News & General
Topic: Retirement Allocations
Replies: 8
Views: 714

Re: Great little interview with John Bogle

Jack - Not a fan of Target Date Funds, doesn't invest in International funds (I'm going out on a limb and guess he doesn't invest in International bonds either) - I'm beginning to like this guy even more. :happy I recently committed a large part of my TIRA to Balanced Index Fund and reduced my Inter...
by Dandy
Fri Apr 24, 2015 8:00 am
 
Forum: Investing - Theory, News & General
Topic: Great little interview with John Bogle
Replies: 23
Views: 2169

Re: Age in Bonds Poll

Age in bonds is a great starting point to begin your process for how to allocate your portfolio. If you are significantly different you should have a decent reason why. It follows the generally accepted (but not universally accepted) idea that the younger you are the more you can afford to take risk...
by Dandy
Fri Apr 24, 2015 7:08 am
 
Forum: Investing - Theory, News & General
Topic: Age in Bonds Poll
Replies: 72
Views: 3354

Re: Why I Chose Target Retirement Funds

Do we know exactly what companies will be contained in the S&P 500 down the road that will be the bulk of our index funds? Not a very valid comparison. We all realize that a broad based index has to be adjusted on occasion to stay relevant. Standard and Poor's isn't adding international small c...
by Dandy
Thu Apr 23, 2015 4:17 pm
 
Forum: Investing - Help with Personal Investments
Topic: Why I Chose Target Retirement Funds
Replies: 36
Views: 3739

Re: What Experts Say About Market-Timing

Trying to time the market is, in general, a bad idea especially if fear and greed are in the mix. I'm not sure the practices or recommendations of all the experts quoted would always meet the strictest definition of not being market timers. e.g. buy and hold is often mentioned but often doesn't mean...
by Dandy
Thu Apr 23, 2015 6:33 am
 
Forum: Investing - Theory, News & General
Topic: What Experts Say About Market-Timing
Replies: 31
Views: 5893

Re: Why I Chose Target Retirement Funds

I applaud Vanguard experts for changing their Target and Life Strategy Funds when they determine changes will be an improvement. Why are Vanguard "experts" any better than other "experts" that manage active funds or write investment books or give advice in the media? Do they hav...
by Dandy
Wed Apr 22, 2015 9:43 pm
 
Forum: Investing - Help with Personal Investments
Topic: Why I Chose Target Retirement Funds
Replies: 36
Views: 3739

Re: New Wade Pfau on Guyton-Klinger & Other Ret. Strategies

But when it comes time to work out a withdrawal strategy, surely you have to have some kind of plan for adjusting your normal withdrawals so as to be ready for a really big hit on long-term care I find that most discussions about withdrawal strategies seem to ignore this point i.e. the strategy say...
by Dandy
Wed Apr 22, 2015 8:30 am
 
Forum: Personal Finance (Not Investing)
Topic: New Wade Pfau on Guyton-Klinger & Other Ret. Strategies
Replies: 13
Views: 1681

Re: Portfolio tune-up before baby arrives

Babies are great - congrats. You seem to have plenty of contributions to your portfolio. I would be somewhat concerned with a 3 month emergency fund. I would make sure that you have some extra cash for the emergency fund and for the baby. I grew up when jobs in a good company or government were the ...
by Dandy
Wed Apr 22, 2015 8:08 am
 
Forum: Investing - Help with Personal Investments
Topic: Portfolio tune-up before baby arrives
Replies: 5
Views: 435

Re: Why I Chose Target Retirement Funds

A "safe risk free return"? Where did you get that idea? I like the Target Retirement Funds but they are not risk free! +1 Target Date funds are decent, all in one choices but can be very high risk (late dated ones) or conservative (Retirement Income). You have to look under the cover at t...
by Dandy
Wed Apr 22, 2015 7:49 am
 
Forum: Investing - Help with Personal Investments
Topic: Why I Chose Target Retirement Funds
Replies: 36
Views: 3739

Re: Bernstein: "If you've won the game, stop playing."

Sure but wouldn't you be steadily reducing risk as you edged ever closer to your number? I agree with reducing risk but suggest it should be a more incremental process than he suggests. I believe he would agree with reducing risk somewhat as you approach retirement. But have you reached what you th...
by Dandy
Tue Apr 21, 2015 9:04 pm
 
Forum: Investing - Theory, News & General
Topic: Bernstein: "If you've won the game, stop playing."
Replies: 146
Views: 14730

Re: Bernstein: "If you've won the game, stop playing."

For most of us it's much more a slow and grinding process, of saving a few dollars every week and watching our portfolio inch closer to whatever number we think we need to retire. In that scenario, Bill's advice has never resonated with me, because after 10 years of saving/investing, I might be at ...
by Dandy
Tue Apr 21, 2015 7:12 pm
 
Forum: Investing - Theory, News & General
Topic: Bernstein: "If you've won the game, stop playing."
Replies: 146
Views: 14730

Re: Diversify out of company stock

I only had about 5% in company stock in 2008-9 and was concerned with capital gains while making a high income. The company stock went from $120 to $8+. I was only dinged but long time employees take a huge bath. The have losses that will be hard to offset any gains in their lifetime. 20% cap gains ...
by Dandy
Tue Apr 21, 2015 2:49 pm
 
Forum: Investing - Help with Personal Investments
Topic: Diversify out of company stock
Replies: 12
Views: 837

Re: Has anyone changed their asset allocation

What you are suggesting is "market-timing Call it what you may. There are a wide range of practices that people put under the market timing umbrella - some really bad some maybe not. Some even call rebalancing market timing. If structured properly it eliminates the emotion trigger and uses a d...
by Dandy
Tue Apr 21, 2015 1:00 pm
 
Forum: Investing - Theory, News & General
Topic: Has anyone changed their asset allocation
Replies: 58
Views: 3381

Re: Cash as an asset class?

Would it be OK to count pensions as part of one's cash asset type This question often sets off a rather emotional discussion on whether pensions or any stream of income should be taken into account (almost everyone agrees) and going further should it be a formal part of your investment allocation (...
by Dandy
Tue Apr 21, 2015 9:50 am
 
Forum: Investing - Help with Personal Investments
Topic: Cash as an asset class?
Replies: 24
Views: 1984

Re: Can't get excited about bond funds

CDs and bank money markets are also good choices I am retired and have about 1/3 of my fixed income allocation in safe products like CD ladders, savings accounts and bank money market funds. When interest rates rise I will decide whether to use some of that "safe" money to buy bond funds t...
by Dandy
Tue Apr 21, 2015 9:00 am
 
Forum: Investing - Theory, News & General
Topic: Can't get excited about bond funds
Replies: 19
Views: 1524

Re: does this withdrawal method make any sense?

Ok to start with 4% plus inflation but remember it is not set it and forget it. Lots of financial and personal bumps in the road are likely ahead. So, every few years assess your health, expenses and portfolio and make sure your planned approach makes sense. Minor adjustments made early make a big d...
by Dandy
Tue Apr 21, 2015 8:46 am
 
Forum: Investing - Theory, News & General
Topic: does this withdrawal method make any sense?
Replies: 10
Views: 1280

Re: Has anyone changed their asset allocation

A few years ago I added some intermediate and short term corp funds instead of just having Total Bond in my TIRA. Also, expanded my TIRA CD ladder. I had a rough goal of 1/3 intermediate bond, 1/3 short term bond and 1/3 safe (e.g. CD). Last month I worked on simplifying my TIRA. By eliminating seve...
by Dandy
Tue Apr 21, 2015 8:40 am
 
Forum: Investing - Theory, News & General
Topic: Has anyone changed their asset allocation
Replies: 58
Views: 3381

Re: Cash as an asset class?

Yes. In the past allocations were often stated in stock, bonds and cash. Long before cash's low interest rates the cash allocation seemed to disappear from allocation suggestions - maybe selling cash isn't financially rewarding. Oh well, cash like all fixed income choices has some pros and cons. Peo...
by Dandy
Tue Apr 21, 2015 8:23 am
 
Forum: Investing - Help with Personal Investments
Topic: Cash as an asset class?
Replies: 24
Views: 1984

Re: Am I saving too much for retirement?

mid 40's is a bit too young to declare victory. Lots of potential market bumps and personal bumps in the road ahead. After all you are looking at possibly 40 years or more ahead. If you feel you are a bit ahead of the "game" (sorry for those who hate the "game" analogy) then you ...
by Dandy
Tue Apr 21, 2015 7:43 am
 
Forum: Investing - Help with Personal Investments
Topic: Am I saving too much for retirement?
Replies: 27
Views: 4650

Re: Bernstein: "If you've won the game, stop playing."

The "rock" side of the "rock and a hard place" for short bonds is that short real yields will always be so low that you have to save far more to retire than you might in following a more risky course (in conventional meanings of risk). True. I believe Mr. Bernstein agrees with b...
by Dandy
Mon Apr 20, 2015 2:16 pm
 
Forum: Investing - Theory, News & General
Topic: Bernstein: "If you've won the game, stop playing."
Replies: 146
Views: 14730

Re: Bernstein: "If you've won the game, stop playing."

If we were to have acted on that advice, it would have meant we shouldn't have saved ANYTHING . I believe you are misinterpreting what stop playing means. It doesn't mean stop saving or stop investing. It means stop putting the assets needed to fund your retirement at much risk. In other words stop...
by Dandy
Mon Apr 20, 2015 12:00 pm
 
Forum: Investing - Theory, News & General
Topic: Bernstein: "If you've won the game, stop playing."
Replies: 146
Views: 14730

Re: SS COLA for 2016 not looking good

The benefits of increased SS COLA is usually offset by inflation increasing living expenses. SS COLAs lag inflation i.e. 2016 increase reflects the inflation you experienced in 2015 and were not compensated for, not what you will experience in 2016. So, low inflation is usually good for retirees - h...
by Dandy
Mon Apr 20, 2015 11:46 am
 
Forum: Personal Finance (Not Investing)
Topic: SS COLA for 2016 not looking good
Replies: 13
Views: 1736

Re: What Guaranteed Return Would You Require to Move All Ass

I would pass. Too many things can happen over a 25 year timeframe to put 100% of my assets in such a product. In the past I know people who passed on 30 year Treasuries that were paying something like 12-15%. That might have been a great deal but would it have beat a 60/40 or 70/30 Boglehead portfol...
by Dandy
Mon Apr 20, 2015 11:32 am
 
Forum: Investing - Theory, News & General
Topic: What Guaranteed Return Would You Require to Move All Assets
Replies: 54
Views: 3136

Re: Bernstein: "If you've won the game, stop playing."

So, are we still "playing the game"? I don't think so. My interpretation is if you have secured your retirement needs with relatively "safe" products you are not still playing the game. You have minimized your risks. Investing the "excess" does not usually result in a ...
by Dandy
Mon Apr 20, 2015 11:21 am
 
Forum: Investing - Theory, News & General
Topic: Bernstein: "If you've won the game, stop playing."
Replies: 146
Views: 14730

Re: Preparing for the Minimum Required Distribution

I'm in a similar place. Let's face it many would like to change places with us. That being said no one likes the benefits of hard work, savings and deferred gratification to result in paying more taxes/expenses. I have done some Roth conversions of my wife's small TIRA to simplify life and to try to...
by Dandy
Mon Apr 20, 2015 6:38 am
 
Forum: Investing - Help with Personal Investments
Topic: Preparing for the Minimum Required Distribution
Replies: 38
Views: 2552

Re: Savings/Investment Help for a Unique Situation

Sorry to hear about your disability especially at such a young age. having 15K extra to put aside is great. One thing I've learned is that even when there wasn't a clear goal - eventually a goal or need arrived that made me glad I had some extra. While government pension and health coverage is the g...
by Dandy
Sun Apr 19, 2015 2:25 pm
 
Forum: Investing - Help with Personal Investments
Topic: Savings/Investment Help for a Unique Situation
Replies: 7
Views: 739

Re: Mailing tax returns

Using Turbo Tax I always file Federal taxes electronically but never pay the almost $20 to file state taxes. This year my state tax check arrived 1 day after the Fed refund was credited to my bank account. So much for getting state refund quicker with electronic filing. Saw something that 80% of fed...
by Dandy
Sun Apr 19, 2015 12:30 pm
 
Forum: Personal Finance (Not Investing)
Topic: Mailing tax returns
Replies: 56
Views: 3757

Re: Schwab Bank Investor Checking down to 0.06% APY

Not much difference in High yield accounts out there . I try to move "excess" money from low/no interest checking to an online savings account that pays close to 1%. Aliant Credit union pays .65% on checking. When you run the numbers and realize some of the hassle of moving checking accoun...
by Dandy
Sun Apr 19, 2015 12:23 pm
 
Forum: Personal Finance (Not Investing)
Topic: Schwab Bank Investor Checking down to 0.06% APY
Replies: 9
Views: 1194

Re: Trying to Help Parents - No EOI Life Insurance?

Unless there is something in her existing contract you need to be careful about getting new insurance - it is easy to get carried away in these emotional times and with the best of intentions, but most likely getting insurance for her legitimately will be entering the fraud risk.
by Dandy
Sun Apr 19, 2015 12:18 pm
 
Forum: Personal Finance (Not Investing)
Topic: Trying to Help Parents - No EOI Life Insurance?
Replies: 22
Views: 1537

Re: a consensus? (Bonds in different accounts)

This means we must sell our stocks in tax-advantaged accounts at our highest income tax rates to get them back into taxable accounts I think you may have reversed the tax advantaged and taxable account tax issues when selling equities. There is no tax issue with selling stocks in tax advantaged acc...
by Dandy
Sun Apr 19, 2015 9:47 am
 
Forum: Investing - Theory, News & General
Topic: a consensus? (Bonds in different accounts)
Replies: 20
Views: 1364

Re: Bernstein: "If you've won the game, stop playing."

A lot depends on your health/longevity genes, size of portfolio, how much of your withdrawal amount is discretionary, the age you retire as well as your risk tolerance. Retiring at 55 presents a much different risk profile than 65. I think all approaches need some stress testing. e.g. If you can liv...
by Dandy
Sun Apr 19, 2015 9:19 am
 
Forum: Investing - Theory, News & General
Topic: Bernstein: "If you've won the game, stop playing."
Replies: 146
Views: 14730

Re: Battery or Gas Lawn Mower

I bought a battery lawn mover and loved it. No fuss, no mess, no gas cans, lower noise level. It was a push mower which started to get to be a bit tiring for a retiree in the summer heat. About 2 or 3 years later the handle broke off and it would have been too much trouble to get it to its service r...
by Dandy
Sun Apr 19, 2015 7:54 am
 
Forum: Personal Consumer Issues
Topic: Battery or Gas Lawn Mower
Replies: 33
Views: 2081

Re: a consensus? (Bonds in different accounts)

the basic idea is that bond income is taxed as ordinary income which is usually higher than stock dividends and TIRA withdrawals are all taxed as ordinary income but sale of taxable equities can be at a loss or lower taxed capital gains. A secondary issue is that since equities should have greater g...
by Dandy
Sun Apr 19, 2015 7:39 am
 
Forum: Investing - Theory, News & General
Topic: a consensus? (Bonds in different accounts)
Replies: 20
Views: 1364

Re: Coming to terms with low risk tolerance

Don't be swayed by what risks others may feel is appropriate you have to find your own comfort level. I never had an equity allocation above 55% and found out that in 2008-09 that was a bit too high. I focused on living below our means and gradually increasing savings rate. I have much more than I n...
by Dandy
Sun Apr 19, 2015 7:15 am
 
Forum: Investing - Help with Personal Investments
Topic: Coming to terms with low risk tolerance
Replies: 46
Views: 3434

Re: Bernstein: "If you've won the game, stop playing."

Inflation is one of the events that can be a problem with some implementations of Bernstein's approach. He does address this with suggesting the use of TIPS. Also, "safe" investments like CD ladders and short term bonds can keep up with modest inflation perhaps on a bit of a lag. Having so...
by Dandy
Sun Apr 19, 2015 6:56 am
 
Forum: Investing - Theory, News & General
Topic: Bernstein: "If you've won the game, stop playing."
Replies: 146
Views: 14730

Re: Porter Stansberry advising going to 100% cash - Help!

In general you should have an allocation that can withstand a crash. As you get older and have fewer earning years and hopefully a larger portfolio you need to keep an eye on you risk and make sure you have the same risk tolerance. If you are in retirement you may wish to determine how many years wo...
by Dandy
Sat Apr 18, 2015 7:12 am
 
Forum: Investing - Theory, News & General
Topic: Porter Stansberry advising going to 100% cash - Help!
Replies: 56
Views: 7342

Re: Bernstein: "If you've won the game, stop playing."

It really shouldn't be a big deal. Many, but not all, respected financial people advise becoming less aggressive in or near retirement. Mr. Bogle's guide was age in bonds, VG Target Date funds get to about 30% equities in their Retirement Income Fund. If you believe you have enough assets to fund re...
by Dandy
Sat Apr 18, 2015 7:01 am
 
Forum: Investing - Theory, News & General
Topic: Bernstein: "If you've won the game, stop playing."
Replies: 146
Views: 14730

Re: Bernstein: "If you've won the game, stop playing."

Did you ever hear of an analogy? I think Wm Bernstein is a respected investment person who takes investments seriously. He uses "game" as a reasonable analogy to having reached "your number". It's ok if you don't agree with he approach but it seems odd that offense seems to be ta...
by Dandy
Fri Apr 17, 2015 12:35 pm
 
Forum: Investing - Theory, News & General
Topic: Bernstein: "If you've won the game, stop playing."
Replies: 146
Views: 14730

Re: Bernstein: "If you've won the game, stop playing."

I like Wm Bernstein's "bottom up" approach i.e. figuring out how much you need to fund retirement and keeping those assets "safe". I am fortunate to have more than enough which I think is almost required to follow his approach. I have enough assets in "safe" products e....
by Dandy
Fri Apr 17, 2015 11:48 am
 
Forum: Investing - Theory, News & General
Topic: Bernstein: "If you've won the game, stop playing."
Replies: 146
Views: 14730

Re: Don't have a plan, what to do with my money?

One thing you should consider is when you will move out of your parents home. While it is financially beneficial it may not be good for your adult development. No great rush. Living out on your own and all that entails is a learning experience - even with a roommate. You get the full experience of f...
by Dandy
Fri Apr 17, 2015 8:54 am
 
Forum: Personal Consumer Issues
Topic: Don't have a plan, what to do with my money?
Replies: 12
Views: 1578

Re: John Bogle's Don't Peek Challenge

You're taking his advice way too literally Not after viewing the video. I previously thought he was making the comment in a off-hand manner. This don't peek video came off as a serious "rule" which he repeated over and over. If you are saying don't even open the envelope until you retire ...
by Dandy
Fri Apr 17, 2015 8:38 am
 
Forum: Investing - Theory, News & General
Topic: John Bogle's Don't Peek Challenge
Replies: 137
Views: 11627

Re: John Bogle's Don't Peek Challenge

I can't believe that such a wise man would advocate that people should not open their statements until retirement. That is one of the worst investment related advice I've ever heard. Is there any other trusted investment advisors/gurus that agree? Just because some investors might over react to mark...
by Dandy
Fri Apr 17, 2015 7:31 am
 
Forum: Investing - Theory, News & General
Topic: John Bogle's Don't Peek Challenge
Replies: 137
Views: 11627
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