Search found 3306 matches

by Dandy
Sat Aug 29, 2015 9:59 am
Forum: Investing - Theory, News & General
Topic: Reblancing
Replies: 9
Views: 328

Re: Reblancing

I don't make any rebalancing a big deal or feel I have to do it in a hurry. I dislike making large rebalancing moves. so I tend to look at keeping my allocation within a tight band e.g. say equities between 40 and 45%. When in 2013 I started getting to 46% or 47% due to the market surging 30% or mor...
by Dandy
Sat Aug 29, 2015 7:25 am
Forum: Personal Finance (Not Investing)
Topic: Dear In-Laws: Less toys, more 529
Replies: 53
Views: 3781

Re: Dear In-Laws: Less toys, more 529

I am a grandfather to 2 toddlers. It sounds like in your case the gifts are somewhat excessive. I would suggest saying mon and dad you are so generous to our kids but maybe you could direct some of the gifts to help fund their education since that will help us give them something that will help them...
by Dandy
Fri Aug 28, 2015 11:42 am
Forum: Investing - Theory, News & General
Topic: Humans 1, Machines 0
Replies: 4
Views: 698

Re: Humans 1, Machines 0

Since humans program the computers it is more like a tie.
by Dandy
Fri Aug 28, 2015 11:40 am
Forum: Investing - Theory, News & General
Topic: Do "valuations" affect your asset allocation?
Replies: 49
Views: 1768

Re: Do "valuations" affect your asset allocation?

If there was a really good metric on valuations it would be a slam dunk - but then again almost everyone would do it so maybe it wouldn't work. Chasing yields and tying to gage if equity markets are over valued is not easy or especially reliable. For interest rates I added some CDs to my ladder rath...
by Dandy
Fri Aug 28, 2015 6:51 am
Forum: Investing - Theory, News & General
Topic: Bogle: retirees should focus on dividends
Replies: 139
Views: 11854

Re: Bogle: retirees should focus on dividends

In an open ended equity mutual fund that pays dividends quarterly - the dividends the fund earns from the stocks it holds are accumulated as they are accrued when they are declared. All things being equal that increases the fund's NAV. When the funds dividends are paid out, all things being equal, t...
by Dandy
Thu Aug 27, 2015 6:53 am
Forum: Investing - Theory, News & General
Topic: How do you diversify?
Replies: 24
Views: 1708

Re: How do you diversify?

Diversification - retired - asset preservation - goals 40/60 allocation, enough "safe" assets to fund retirement to age 90 1. Equities - Total Stock Market, Total International/FTSE ex US, Value Index, Small Cap Index 2. Fixed Income - CD ladder, Short Term Bond Index, Short Term Investmen...
by Dandy
Thu Aug 27, 2015 6:33 am
Forum: Investing - Help with Personal Investments
Topic: Retired with cash...How to re-enter?
Replies: 13
Views: 1560

Re: Retired with cash...How to re-enter?

Not all investors are or should be striving for maximizing growth. The opposite of maximizing growth isn't always minimizing regret -- it is sometimes asset preservation. Agree that for most people investing a large lump sum at your target allocation can make sense. But, is your goal growth or asset...
by Dandy
Wed Aug 26, 2015 7:09 pm
Forum: Investing - Theory, News & General
Topic: More Proof: The 'Do Nothing' Strategy Works
Replies: 15
Views: 2481

Re: More Proof: The 'Do Nothing' Strategy Works

Ok there is a lot to say about not panicking or constantly tweaking your investments. It is generally acknowledged that equity markets often go down sharply fairly often. Ignoring such moves and the media hype that goes with it is sound for most - most of the time. Let's not get too carried away wit...
by Dandy
Wed Aug 26, 2015 6:00 am
Forum: Investing - Help with Personal Investments
Topic: Do you count cash towards your portfolio asset allocation?
Replies: 34
Views: 1792

Re: Do you count cash towards your portfolio asset allocation?

So debt has a lot to do with your investments and your investment decisions I think we are splitting hairs here. I'm not in favor of much debt - don't have any - paid off my mortgage well before retirement. Don't need much advice on the potential evils of too much debt and debt for the wrong reason...
by Dandy
Tue Aug 25, 2015 5:53 pm
Forum: Investing - Theory, News & General
Topic: How do you "Stay the Course"?
Replies: 74
Views: 7968

Re: How do you "Stay the Course"?

1. I'm in pretty good financial shape so I have a margin of safety --not everyone is as lucky. 2. I have a conservative allocation about 40/60. 3. In my TIRA all equities are in Balanced Index and Wellesley so they are automatically rebalanced. 4. I have a diversified fixed income allocation e.g. TI...
by Dandy
Tue Aug 25, 2015 5:31 pm
Forum: Investing - Help with Personal Investments
Topic: Do you count cash towards your portfolio asset allocation?
Replies: 34
Views: 1792

Re: Do you count cash towards your portfolio asset allocation?

I wouldn't count emergency funds or a small amount in a savings account in my investment allocation. They are not intended as investments. Many have a cash or cash-like products as part of their allocation e.g. Savings bonds, money markets, Stable Value Funds, etc. Your debt is a negative toward you...
by Dandy
Tue Aug 25, 2015 8:00 am
Forum: Personal Finance (Not Investing)
Topic: A retiree's personal experience...
Replies: 39
Views: 8199

Re: A retiree's personal experience...

I retired in 2008 at 60 just before the crash. :oops: I drew from savings to supplement my decent pension. I have ridden the bull market so far in retirement. I think it has given me a false sense of wealth and well being. While in theory I know that a market correction will drop my assets quite a b...
by Dandy
Tue Aug 25, 2015 7:46 am
Forum: Investing - Theory, News & General
Topic: 100% equities - my reasoning
Replies: 105
Views: 8751

Re: 100% equities - my reasoning

Investing like much in life it is better to avoid the extremes. Equities can drop up to 90% and surely 50% or so several times in your lifetime. When - no one knows. So you can have a $2 million portfolio at age 59 and be looking forward to a comfortable retirement and then the bottom can drop out -...
by Dandy
Tue Aug 25, 2015 7:34 am
Forum: Investing - Theory, News & General
Topic: How are you being GREEDY when others are fearful?
Replies: 84
Views: 8813

Re: How are you being GREEDY when others are fearful?

If I was in the accumulation stage I'm pretty sure I would have been a buyer of equities on Friday and/or Monday. In retirement I was tempted but since my equity allocation is pretty much on target I took no action. However, since most of my assets are in a TIRA and all of those equity assets are in...
by Dandy
Tue Aug 25, 2015 7:24 am
Forum: Investing - Help with Personal Investments
Topic: Did a dumb thing [lump summed into market after sitting on cash for years]
Replies: 111
Views: 12808

Re: Did a dumb thing [lump summed into market after sitting on cash for years]

The usual advice is to lump sum invest rather than DCA and much more so not to wait on the sidelines. While jumping in all in a lump is usually recommended and has some basis in past analysis, it is often emotionally almost impossible to do. A much more practical real life recommendation for those w...
by Dandy
Tue Aug 25, 2015 7:14 am
Forum: Investing - Help with Personal Investments
Topic: Novice w/entire net worth in cash...jump in now?
Replies: 14
Views: 2070

Re: Novice w/entire net worth in cash...jump in now?

The usual advice is to jump in with 100% at your target allocation. That is supposed to be validated by studies that show lump sum beats DCA about 2/3 of the time. Not sure they have done studies when markets are at or near their highs (we are a bit off the highs now) or when the markets are especia...
by Dandy
Mon Aug 24, 2015 8:55 am
Forum: Investing - Theory, News & General
Topic: Bogle: retirees should focus on dividends
Replies: 139
Views: 11854

Re: Bogle: retirees should focus on dividends

The thing is, to me, this is a false dichotomy. They aren't mutually exclusive approaches--one is a subset of the other. It's not like people focusing on total return are ignoring their dividends or not planning on taking income from their portfolios. It just feels like one group is completely igno...
by Dandy
Mon Aug 24, 2015 8:18 am
Forum: Investing - Help with Personal Investments
Topic: investment for infant
Replies: 14
Views: 856

Re: investment for infant

There are tax advantages for UGMAs and 529's but they don't seem to interest you enough. From a control of the money standpoint keeping it in your name maximizes your taxes (unless in a state muni) and your control. Putting it directly in your child's SSN mitigates some taxes but loses control unles...
by Dandy
Mon Aug 24, 2015 7:50 am
Forum: Investing - Help with Personal Investments
Topic: Extra Money from Sale of Business
Replies: 5
Views: 366

Re: Extra Money from Sale of Business

I assume you have ongoing income to support you until you reach normal retirement age. 1. Payoff Mortgage - Will have some of the money left over after doing that - not a lot. Usually a good idea but I also like liquidity -- if it doesn't tempt you to over spend. I would maybe put half toward that n...
by Dandy
Sun Aug 23, 2015 5:50 am
Forum: Personal Finance (Not Investing)
Topic: Passed up for a promotion, now what?
Replies: 34
Views: 4266

Re: Passed up for a promotion, now what?

I would make sure your work and attitude stays top notch. Everyone will be looking for your reaction. Don't change or "confront". After a few weeks I would discuss your disappointment with the VP in a very professional manner. I would ask him whether he thinks you doing a good job and if n...
by Dandy
Sun Aug 23, 2015 5:22 am
Forum: Investing - Theory, News & General
Topic: How long will you"Stay the Course"?
Replies: 99
Views: 7730

Re: How long will you"Stay the Course"?

The course is often set relatively early. If it survives a market test that is a good sign. It is hard to set a course that will anticipate all your needs decades ahead. There are times when it would be wise to hold the course and times when it would be almost foolish. Panic moves and avoiding stubb...
by Dandy
Sat Aug 22, 2015 6:54 am
Forum: Investing - Theory, News & General
Topic: Are international bonds necessary?
Replies: 17
Views: 1394

Re: Are international bonds necessary?

I think of fixed income for safety, income and asset preservation purposed. I do believe in having some diversity to just having the Total bond fund. I would add TIPS, CDs and other FDIC or Federal Government guaranteed products. As a retiree I'm not sure adding International bonds are needed. I'll ...
by Dandy
Sat Aug 22, 2015 6:45 am
Forum: Investing - Theory, News & General
Topic: Bogle: retirees should focus on dividends
Replies: 139
Views: 11854

Re: Bogle: retirees should focus on dividends

I think there are two basic types of approaches for retirees. Some want to maximize their portfolio by having or maintaining a fairly aggressive allocation and those that would "settle" for less growth and more income. As long as you know the relative risks/rewards either path is fine. Per...
by Dandy
Fri Aug 21, 2015 7:03 am
Forum: Investing - Theory, News & General
Topic: Pascal's Wager and prudent investment decisions
Replies: 29
Views: 3053

Re: Pascal's Wager and prudent investment decisions

It is the issue faced when you decide you have more than enough assets to fund your retirement. Do you change your allocation more toward asset protection or maintain a more aggressive allocation. Will an asset protection strategy cause you to run out of money? Will an aggressive allocation go from ...
by Dandy
Fri Aug 21, 2015 6:24 am
Forum: Investing - Help with Personal Investments
Topic: US Bias?
Replies: 6
Views: 602

Re: US Bias?

There is no large country/economy that has the advantages of the US. Size, stable government(?), at peace with neighbors, separated by two large oceans from Asian, European and Middle East tensions and conflicts, abundant natural resources, educated population, peaceful transfer of power, free press...
by Dandy
Wed Aug 19, 2015 3:46 pm
Forum: Investing - Theory, News & General
Topic: Bogle: retirees should focus on dividends
Replies: 139
Views: 11854

Re: Bogle: retirees should focus on dividends

Your post should have been written as corrected above I'll stick by my post and you can have your preferences. I think core expenses when covered by various income streams is nice in retirement. The withdrawals can then be for special non core expenses, helping children or charity. That would be a ...
by Dandy
Wed Aug 19, 2015 10:46 am
Forum: Investing - Theory, News & General
Topic: Good argument for underweighting international stocks?
Replies: 77
Views: 4336

Re: Good argument for underweighting international stocks?

I think the most compelling reason for international stocks is that they are higher risk and therefore should generate higher returns. Being retired and in very good shape that is not compelling enough to me. I'll take my modest equity risk mostly on US in the Total Stock Market and have just a tilt...
by Dandy
Wed Aug 19, 2015 10:40 am
Forum: Investing - Theory, News & General
Topic: Bogle: retirees should focus on dividends
Replies: 139
Views: 11854

Re: Bogle: retirees should focus on dividends

It is a great situation in retirement to have all or almost all of your core expenses covered by income. Whether that is pension, Social Security, Annuities, part time job or dividends. I wouldn't take much extra risk to get higher dividends but if it was a moderate tilt - it might be a path I would...
by Dandy
Tue Aug 18, 2015 7:48 am
Forum: Investing - Help with Personal Investments
Topic: 23 year old with 50+ years to invest looking for advice
Replies: 31
Views: 2121

Re: 23 year old with 50+ years to invest looking for advice

If you are 100% sure you won't touch the funds for 50+ years.... go 100% equities. No brainer there.


Iffy for many retirees -- impossible? for a 23 year old.
by Dandy
Mon Aug 17, 2015 4:52 pm
Forum: Investing - Theory, News & General
Topic: Defining "stay the course"
Replies: 23
Views: 2001

Re: Defining "stay the course"

I think the basics of stay the course is to have an investment plan and stick to it until and unless their are significant life changes. What is significant is somewhat personal. But having children, losing a job, health issues, getting married, retiring, getting a windfall are some that would trigg...
by Dandy
Mon Aug 17, 2015 4:40 pm
Forum: Investing - Help with Personal Investments
Topic: asset allocation
Replies: 7
Views: 614

Re: asset allocation

Your personality is that you are still looking to be active to beat the market. People as smart or smarter than you will tons of computer and research assets at their disposal have thought of every active scheme imaginable. Some work for awhile and some don't work will at all. So, I would work on re...
by Dandy
Mon Aug 17, 2015 4:32 pm
Forum: Investing - Help with Personal Investments
Topic: 23 year old with 50+ years to invest looking for advice
Replies: 31
Views: 2121

Re: 23 year old with 50+ years to invest looking for advice

I'll echo a previous post that 100% equities at your age is often suggested as a good theory -- in practice it carries more than market risk it contains emotional risk. You can expect to hit several severe equity market plunges during your 50+ years. One or two of them will take your breath - and a ...
by Dandy
Mon Aug 17, 2015 6:10 am
Forum: Investing - Help with Personal Investments
Topic: Roth for 20 year old daughter
Replies: 4
Views: 679

Re: Roth for 20 year old daughter

I like the fact that you are getting your daughter into saving/investing in a Roth at such an early stage. I like the Balanced Index Fund. I would see that as a great core fund. You can supplement that with an additional fund or funds to get the added diversity you desire if you choose. I'm not a fa...
by Dandy
Mon Aug 17, 2015 5:30 am
Forum: Investing - Help with Personal Investments
Topic: Vanguard Balanced or LifeStrategy Moderate?
Replies: 17
Views: 1980

Re: Vanguard Balanced or LifeStrategy Moderate?

Between the 2 I'd vote for Balanced Index. Life Strategy and TD funds keep changing so you don't really know what they will look like down the road - and if they don't fit your needs changing taxable investments can create tax liabilities. You might look at Tax Managed Balanced which is close to a 5...
by Dandy
Sun Aug 16, 2015 11:28 am
Forum: Investing - Theory, News & General
Topic: Balanced Portfolio Vulnerable to Inflation?
Replies: 46
Views: 3095

Re: Balanced Portfolio Vulnerable to Inflation?

Interesting post. I think the OP could get the impression that this forum and/or VG isn't enthusiastic about TIPs for 2 reasons: 1. Lots of emphasis on the 3 fund portfolio - which has no TIPS included - and a great emphasis on not expanding that portfolio because of the emphasis on simplicity. Also...
by Dandy
Sun Aug 16, 2015 6:45 am
Forum: Investing - Help with Personal Investments
Topic: Accounting for Cash Balance Plan in asset allocation?
Replies: 14
Views: 923

Re: Accounting for Cash Balance Plan in asset allocation?

No matter which way you use i.e. counting it as a formal part of your allocation or just taking it into account - you can get to the same decision as to what to do with your investable assets. If you have a large portfolio and a large allocation to fixed income it really doesn't matter what you do. ...
by Dandy
Sat Aug 15, 2015 6:54 pm
Forum: Investing - Help with Personal Investments
Topic: Accounting for Cash Balance Plan in asset allocation?
Replies: 14
Views: 923

Re: Accounting for Cash Balance Plan in asset allocation?

I count mine as part of my fixed income allocation. To me, this is clearly the right treatment. I don't say it is terrible and you can make a case but it is far from clearly the absolute right treatment. You can get to your desired investment allocation by taking those non investment assets into ac...
by Dandy
Sat Aug 15, 2015 4:27 pm
Forum: Investing - Theory, News & General
Topic: Dave Ramsey - Help Me Understand His Investing Strategy
Replies: 75
Views: 8176

Re: Dave Ramsey - Help Me Understand His Investing Strategy

generally, I find people that recommend 100% equities or thereabout are focused directly or indirectly on the fact that equities over the long term outperform -- so why dilute your future by having an allocation to an asset that has a much lower long term performance. There is a certain logic in tha...
by Dandy
Sat Aug 15, 2015 7:42 am
Forum: Investing - Theory, News & General
Topic: When do you notice the compounding at work?
Replies: 52
Views: 7205

Re: When do you notice the compounding at work?

For me it was when the growth of the portfolio excluding my current year contributions, exceeded my yearly contributions. In effect, my portfolio was contributing more than my savings. That is when I felt the compounding effect was wind at my back.
by Dandy
Sat Aug 15, 2015 7:30 am
Forum: Investing - Help with Personal Investments
Topic: Accounting for Cash Balance Plan in asset allocation?
Replies: 14
Views: 923

Re: Accounting for Cash Balance Plan in asset allocation?

I would take the cash balance amount into account as a potential asset when deciding your current allocation. It allows you to take a bit more risk if you want to. But, I would not make it a formal part of your actual investment allocation by say counting it as fixed income. It is similar to cash va...
by Dandy
Fri Aug 14, 2015 9:36 am
Forum: Investing - Help with Personal Investments
Topic: What to do with small pension?
Replies: 11
Views: 1470

Re: What to do with small pension?

I don't think the decision is critical to your long term financial success. Without knowing your specific situation can only offer some general advice. I have a nice investment nest egg. I have opted to wait for the maximum pension and SS. I like the "diversification" that comes rom not ha...
by Dandy
Fri Aug 14, 2015 6:04 am
Forum: Investing - Theory, News & General
Topic: Money Mag:Why Vanguard Founder Jack Bogle Doesn’t Like Investing in Foreign Markets
Replies: 64
Views: 6603

Re: Money Mag:Why Vanguard Founder Jack Bogle Doesn’t Like Investing in Foreign Markets

I tend to agree with jack on this one. I treat international investing like a tilt e.g. 10% or so or my portfolio. As a retiree I see no advantage of more international. If/when there is international turmoil and the flight to safety investments go to China, UK or India that should be a game changer...
by Dandy
Thu Aug 13, 2015 6:21 am
Forum: Investing - Theory, News & General
Topic: Front-End Loads: Are They Really THAT Big of a Deal?
Replies: 60
Views: 4255

Re: Front-End Loads: Are They Really THAT Big of a Deal?

Funds with front end loads almost always have higher expenses even if you ignore the front end load. 12b-1 fees, and higher expense ratios. They have to pay commissions and brokers and branch managers want most of that front ended and they have to support field offices and marketing as well as pay b...
by Dandy
Wed Aug 12, 2015 4:56 am
Forum: Personal Finance (Not Investing)
Topic: How much is too much?
Replies: 42
Views: 5324

Re: How much is too much?

One downside to a frugal approach is it can become a habit or end in itself. Balance is the key. You have to enjoy the journey along the way. We weren't as frugal as you are but have accumulated "enough" even more than "enough". I find myself having a bit of a hard time spending ...
by Dandy
Tue Aug 11, 2015 6:35 am
Forum: Investing - Help with Personal Investments
Topic: A retiree's Investment Policy Statement
Replies: 32
Views: 3093

Re: A retiree's Investment Policy Statement

Why would you worry about how to shorten it? It seems to be a very good rationale statement for spouse or heirs on what you are doing and why. Based on my recollection of your previous posts you don't need this - so it must really be for wife or heirs. If so, I think the better use of your time woul...
by Dandy
Tue Aug 11, 2015 6:20 am
Forum: Investing - Help with Personal Investments
Topic: HELP Very new
Replies: 11
Views: 631

Re: HELP Very new

Sorry for the loss of both parents all at once been there done that. Nice that you used some of your inheritance to help your children. I know how scary it can be to try to manage your nest egg -- the fear of doing something wrong on your own is often worse than the fear of being taken to the cleane...
by Dandy
Tue Aug 11, 2015 5:53 am
Forum: Investing - Help with Personal Investments
Topic: How to convert from "active" to passive investing?
Replies: 13
Views: 1414

Re: How to convert from "active" to passive investing?

I like a previous reply that said move stock positions to VG brokerage - get everything under one roof then sell as tax loss harvesting or other tax issues permit. No need to do it all in one year. Getting centralized and out of ML and 1% AUM fee is a great first step. With 750k in investment assets...
by Dandy
Mon Aug 10, 2015 2:49 pm
Forum: Personal Finance (Not Investing)
Topic: Term Life- How Much To Get and For How Many Years?
Replies: 29
Views: 2540

Re: Term Life- How Much To Get and For How Many Years?

Life Insurance needs tend to fall off a cliff at a certain age - usually close to retirement when any children are grown and on their own. Most term policies can be made permanent and/or you can often lower the face amount and related premium. Usually, you need the most protection when your children...
by Dandy
Mon Aug 10, 2015 1:50 pm
Forum: Personal Consumer Issues
Topic: first time home buyer lifestyle decision
Replies: 14
Views: 1367

Re: first time home buyer lifestyle decision

I'd glad you identified safety which is important with a pool or pond. If you are ok with the extra work/expense then go for it.
by Dandy
Mon Aug 10, 2015 1:45 pm
Forum: Personal Finance (Not Investing)
Topic: Chase asking for liquid net worth, total net worth...
Replies: 46
Views: 6050

Re: Chase asking for liquid net worth, total net worth...

open the inherited IRA at a mutual fund company in a non brokerage account. No such requirement, I believe< since you can't trade indivial stocks, buy on margin etc.

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