Search found 3242 matches

by Dandy
Sat Aug 01, 2015 7:17 am
Forum: Personal Finance (Not Investing)
Topic: Terrible Index Funds
Replies: 10
Views: 1520

Re: Terrible Index Funds

For the same reason various pricing practices are legal across all industries in a capitalist society (E.g. one estimate for my roof might be $3K while another $8K - the $8K roofer has every right to charge what he wants) - buyer beware. :happy True but if these funds are all you can get in your 40...
by Dandy
Fri Jul 31, 2015 6:53 am
Forum: Investing - Theory, News & General
Topic: Waiting for the dip to add funds? Good luck!
Replies: 9
Views: 1508

Re: Waiting for the dip to add funds? Good luck!

Sometimes when there are really bad days in a row and I am a bit below my target equity allocation I will buy - call it early rebalancing. I understand that people might sit on the sidelines waiting for a dip and probably should just invest. But -- keep in mind some of the best investors are value i...
by Dandy
Fri Jul 31, 2015 6:40 am
Forum: Investing - Theory, News & General
Topic: Saving for College vs. Saving for Retirement: Why the Conventional Wisdom Is Wrong
Replies: 31
Views: 2670

Re: Saving for College vs. Saving for Retirement: Why the Conventional Wisdom Is Wrong

Most people put something away with both retirement and their children's education. I have seen people overdue the college savings/expenses and then struggle in retirement. One couple sent their daughter to a very expensive college and she got a degree in something like museum management. Now she wo...
by Dandy
Fri Jul 31, 2015 6:09 am
Forum: Investing - Help with Personal Investments
Topic: Life insurance payment options and what to do with it?
Replies: 6
Views: 460

Re: Life insurance payment options and what to do with it?

Sorry for your loss. Insurance companies started offering "options" awhile ago. Sure it can make sense not to give grieving heirs a large lump sum at a time when they might not be thinking clearly. But, really it was mostly about asset retention. The insurance company gets to hold on to la...
by Dandy
Thu Jul 30, 2015 1:58 pm
Forum: Investing - Help with Personal Investments
Topic: Simplify Investments for DW if I precede her in death
Replies: 20
Views: 1443

Re: Simplify Investments for DW if I precede her in death

Consolidating providers makes sense. You might consider using the Balanced Index Fund which basically combines the Total US stock market and the Total Bond market in a 60/40 allocation. I like that vs Target Date of Life Strategy funds.
by Dandy
Thu Jul 30, 2015 6:17 am
Forum: Personal Finance (Not Investing)
Topic: How Did You Leave Money for College in Your Will for Your Grandchildren?
Replies: 9
Views: 1019

Re: How Did You Leave Money for College in Your Will for Your Grandchildren?

A noble idea. Except for relatively modest amounts, I'm not sure I would want to leave money to grandchildren vs their parents in most cases. That assumes the parents are responsible with money etc. If there are two children one may get a full scholarship and the other not, one may need extensive me...
by Dandy
Thu Jul 30, 2015 6:06 am
Forum: Personal Finance (Not Investing)
Topic: Retirees: Social Security and Expenses
Replies: 61
Views: 3403

Re: Retirees: Social Security and Expenses

retired, not collecting SS yet, estimate SS at age 70 will be about 1/3 of expenses.
by Dandy
Wed Jul 29, 2015 10:30 am
Forum: Investing - Theory, News & General
Topic: What do you know... (that no one else knows)?
Replies: 11
Views: 1465

Re: What do you know... (that no one else knows)?

It's that last one that gets you.
That is true and the one that got the author too.
by Dandy
Wed Jul 29, 2015 7:59 am
Forum: Investing - Theory, News & General
Topic: Vanguard - Four Fund Portfolio
Replies: 118
Views: 14148

Re: Vanguard - Four Fund Portfolio

One question I have is as an investor gets closer to retirement, or is in retirement, the assumption is the bonds allocation is higher. With the higher bond allocation, 30% to international bonds as Vanguard recommends, may be increasing risks. Is this a valid assumption? Abuss I'm not sure how to ...
by Dandy
Wed Jul 29, 2015 7:12 am
Forum: Investing - Theory, News & General
Topic: What do you know... (that no one else knows)?
Replies: 11
Views: 1465

Re: What do you know... (that no one else knows)?

Nice post Sometimes you find out what you knew was false or flawed only in the rear view mirror. I've put too much emphasis on price vs quality -- a common frugal mistake. I have a better plan for my money than for my life I often confuse the two. More drift than purpose. What I think I know is that...
by Dandy
Wed Jul 29, 2015 6:50 am
Forum: Investing - Theory, News & General
Topic: Vanguard - Four Fund Portfolio
Replies: 118
Views: 14148

Re: Vanguard - Four Fund Portfolio

I like the idea of diversification of the fixed income side from "just" Total Bond fund. I would add TIPS, CDs rather than International bonds. VG seem to want International bond to be at or near global proportions. That is way to much for my taste I see it a maybe a tilt percentage e.g. 5...
by Dandy
Wed Jul 29, 2015 6:43 am
Forum: Investing - Theory, News & General
Topic: I know I'm not the only one... [dividend paying stock funds]
Replies: 24
Views: 2718

Re: I know I'm not the only one... [dividend paying stock funds]

There are different types of dividend oriented stock funds. Some go for deep value, some for companies that have a history of raising dividends etc. Since a company that pays a dividend usually wants to maintain that dividend there is a tendency for dividends to remain stable or even rise over time....
by Dandy
Mon Jul 27, 2015 4:41 pm
Forum: Investing - Theory, News & General
Topic: The forgotten inaccuracies of our small predictions
Replies: 18
Views: 1858

Re: The forgotten inaccuracies of our small predictions

For me it is hearing a voice like on a radio or song and forming a metal picture of what the person looks like. You imagine a voice with a pleasant news voice with baritone and picture a man in his fifties in a suit, kind of like Walter Cronkite and then he gets on TV and he is a skinny, nerdy kid i...
by Dandy
Sun Jul 26, 2015 9:26 pm
Forum: Investing - Theory, News & General
Topic: 50/50 asset allocation
Replies: 69
Views: 5743

Re: 50/50 asset allocation

Why not Balanced Index Fund and enough fixed income (bond fund, CD?) to bring the allocation to 50/50.
by Dandy
Sun Jul 26, 2015 4:53 pm
Forum: Investing - Help with Personal Investments
Topic: Investing the proceeds from the sale of your home
Replies: 8
Views: 868

Re: Investing the proceeds from the sale of your home

1. Tax Managed Balanced funds are designed to avoid regular Fed tax only right? Do they avoid AMT, because we are hit with AMT every year? I had "tax advantaged bond funds" in the past, but they were always hit with AMT. The muni portion avoids Federal taxes - but I don't know if they cur...
by Dandy
Sun Jul 26, 2015 8:28 am
Forum: Personal Finance (Not Investing)
Topic: How much does Property Tax factor in home purchase?
Replies: 36
Views: 2567

Re: How much does Property Tax factor in home purchase?

It is a decent factor. Sometimes a location has lower taxes for a good reason - e.g. they have some commercial firms that pay taxes and sometimes for bad reasons like they waste money. I was surprised that our property taxes are about 2/3 for the land and 1/3 for the actual house. I have a reasonabl...
by Dandy
Sun Jul 26, 2015 6:05 am
Forum: Personal Finance (Not Investing)
Topic: Rewards Checking-An Easy Way to Earn Extra Money
Replies: 22
Views: 2692

Re: Rewards Checking-An Easy Way to Earn Extra Money

Most of these require you to swipe your debit card x number of times per week/month. Not a debit card fan. So, I put "extra" money in an online savings account paying about 1%. For those who frequently use their debit card it is an easy way to make some extra bucks. I don't want the hassle...
by Dandy
Sun Jul 26, 2015 5:58 am
Forum: Personal Finance (Not Investing)
Topic: What are your financial goals?
Replies: 41
Views: 4062

Re: What are your financial goals?

Retired age 67 1. Have enough "safe" investments/savings to fully fund our retirement until at least age 90. 2. Maximize pension and Social Security (for higher earner) 3. Provide financial help to children and grandchildren while we are alive instead of them waiting for inheritance. 4. Gr...
by Dandy
Sun Jul 26, 2015 5:43 am
Forum: Investing - Theory, News & General
Topic: "Total" Stock No More So than "Total" Bond
Replies: 52
Views: 3810

Re: "Total" Stock No More So than "Total" Bond

I'd be happier if the Total Bond Fund was called something less e.g. Diversified Bond Fund. I feel it excludes many "main" stream fixed income choices as well as "main" stream fixed income products that it really couldn't include e.g. CDs, EE bonds, I Bonds. There is a tendency, ...
by Dandy
Fri Jul 24, 2015 6:27 pm
Forum: Personal Finance (Not Investing)
Topic: Where do you keep/park your emergency fund?
Replies: 53
Views: 5481

Re: Where do you keep/park your emergency fund?

I never had a separate all in one place emergency fund. Always made sure I had enough liquid assets in savings, CDs, short term bonds funds, money market funds (when they paid 5%), Stable Value Funds, EE bonds etc. Also, a HELOC. I never had a true emergency that required liquidating these assets. L...
by Dandy
Fri Jul 24, 2015 6:15 pm
Forum: Investing - Help with Personal Investments
Topic: Vanguard and CDs
Replies: 6
Views: 938

Re: Vanguard and CDs

Vanguard is offering "brokerage CDs" what you normally have bought is a "direct" bank CD. Brokerage CDs have different features (still insured by the FDIC - at least all VG offered CDs are) 1. There is no early redemption penalty on brokerage CDs - they have to be sold on the ope...
by Dandy
Fri Jul 24, 2015 10:05 am
Forum: Investing - Help with Personal Investments
Topic: Investing the proceeds from the sale of your home
Replies: 8
Views: 868

Re: Investing the proceeds from the sale of your home

Proceeds from home sale are about $400k. Here is my plan for investment, please comment: 50% Vanguard Target Retirement 2045 Fund (VTIVX) 30% Pay down current mortgage 10% VGSLX REIT fund (current retirement portfolio has no REIT exposure) 10% Lending club or Prosper high risk bonds (I want to try ...
by Dandy
Thu Jul 23, 2015 7:56 am
Forum: Personal Finance (Not Investing)
Topic: Bogle backfire?
Replies: 66
Views: 7747

Re: Bogle backfire?

Why didn't I buy Apple when it was at $9 :oops: You have to live by a general managing money philosophy or else you are subject to whims, fads, media hype, or well meaning advice of friends and neighbors. I don't think any of the "opportunities" you passed up were no brainers - so don't th...
by Dandy
Wed Jul 22, 2015 5:54 am
Forum: Investing - Help with Personal Investments
Topic: Why invest in BNDX's when 30 day SEC yield = 0.76%.
Replies: 102
Views: 6764

Re: Why invest in BNDX's when 30 day SEC yield = 0.76%.

You would think that a 7 year duration exposure would yield a bit more. Fixed income is often for safety/stability but at some point the longer the duration the less the investment is about safety/stability and the more it is about yield/risk. I am not a fan (yet) of international bonds or high yiel...
by Dandy
Wed Jul 22, 2015 5:41 am
Forum: Investing - Help with Personal Investments
Topic: asset allocation: based on pure or real investment?
Replies: 9
Views: 754

Re: asset allocation: based on pure or real investment?

I'm not much of a tilter but purity is hard to find. Most funds' strategy statement calls for at least 80% to be invested according to it's goal or index. That leaves some wiggle room - which isn't necessarily a bad thing. It probably is good to check the M* style box to see that the fund name and a...
by Dandy
Tue Jul 21, 2015 3:36 pm
Forum: Personal Finance (Not Investing)
Topic: Why did you take SS at FRA instead of delaying until 70?
Replies: 69
Views: 7581

Re: Why did you take SS at FRA instead of delaying until 70?

I'm 67 and waiting for 70 to collect SS. I would have collected at 66 (my FRA) for the following reasons: 1. I needed the money to have an acceptable standard of living 2. I was single (my pensions will be cut in half upon my death so spouse may need max SS in that case) 3. Health issues or heredity...
by Dandy
Tue Jul 21, 2015 2:04 pm
Forum: Personal Finance (Not Investing)
Topic: Should I consider Social Security Benefits as Assets
Replies: 44
Views: 2788

Re: Should I consider Life Insurance Cash Value and Social Security Benefits as Assets

It depends on why you are calculating or interested in your net worth. Life Insurance cash value is some ways is similar to the equity in your home or business for that matter. If the calc is just to see where you stand - count it. But, if it is to determine your investment allocation and count it a...
by Dandy
Tue Jul 21, 2015 7:12 am
Forum: Investing - Help with Personal Investments
Topic: How much cash - need help giving advice to mother
Replies: 11
Views: 1099

Re: How much cash - need help giving advice to mother

She has enough assets to be set for life. If keeping a few years in liquid assets will make her calm - do it. Also, she may need a more conservative portfolio e.g. some of that fixed income in a CD ladder etc. After she calms down you might have a better chance of discussing how well she is position...
by Dandy
Tue Jul 21, 2015 7:03 am
Forum: Investing - Help with Personal Investments
Topic: Auto Bucket Portfolio
Replies: 15
Views: 1575

Re: Auto Bucket Portfolio

Sorry I'm not aware of income funds that will address your issue. Once you use the term bucket it raises the hackles of many investors. Some "bucket" approaches are very strict e.g. x number of years in this bucket y number of years in that bucket. Some of that is true asset segregation an...
by Dandy
Sun Jul 19, 2015 3:39 pm
Forum: Investing - Theory, News & General
Topic: When did you start investing in the Market?
Replies: 60
Views: 3316

Re: When did you start investing in the Market?

In 1983, as I recall IRAs were introduced or got attention. I was in my mid 30's. Money magazine had lots of features (it was the dawn of the PC so hardly anyone had one). I fell for the track records and invested in some decent active funds to get the tax deduction and invest for the future. I late...
by Dandy
Sun Jul 19, 2015 7:02 am
Forum: Personal Finance (Not Investing)
Topic: Should severance be allowed to reduce emergency fund?
Replies: 23
Views: 2162

Re: Should severance be allowed to reduce emergency fund?

Severance is not a bird in hand. What has happened to those let go in the past is not a lock for what will happen in the future. Also, skill sets in the tech industry can go from in demand to out of date rather quickly and if a department is laid off due to a cancelled project there may be a lot of ...
by Dandy
Sun Jul 19, 2015 6:21 am
Forum: Investing - Theory, News & General
Topic: Any reason to hold short-term bonds with a long-term horizon?
Replies: 29
Views: 2526

Re: Any reason to hold short-term bonds with a long-term horizon?

If you are determined to go long term and hold to maturity and don't care if rising rates may lock you into a lower rate or if you have to sell you might take a loss - no problem. The main reason longer rates are usually higher is because the borrower takes on more risk the longer the term. Not just...
by Dandy
Sat Jul 18, 2015 3:45 pm
Forum: Investing - Theory, News & General
Topic: Any reason to hold short-term bonds with a long-term horizon?
Replies: 29
Views: 2526

Re: Any reason to hold short-term bonds with a long-term horizon?

A long term bond locks in the higher rate but is more subject to rising interest rates and the effects of rising inflation. Most things I've read seem to suggst that the higher yield isn't worth the other risks. There are some that use a barbell strategy i.e. have some longer term bonds and some sho...
by Dandy
Sat Jul 18, 2015 12:09 pm
Forum: Investing - Help with Personal Investments
Topic: [Pension buyout ] Lump sum help
Replies: 17
Views: 2008

Re: Lump sum help

In most cases I would suggest waiting to take the annuity. A lot depends on your health, longevity genes, the strength of the company, and need for the money. If you decide to wait I assume you don't have to give the final age you will start the annuity at this time. So wait and see how your health,...
by Dandy
Sat Jul 18, 2015 6:31 am
Forum: Investing - Theory, News & General
Topic: The "No Bonds" portfolio
Replies: 80
Views: 11064

Re: The "No Bonds" portfolio

People should think fixed income vs bonds. There are a range of different fixed income products - know the pros and cons of each and you can make wise choices. I exclude, high yield, long term and international bonds. But have or would consider most other. I think almost anyone in or near retirement...
by Dandy
Fri Jul 17, 2015 8:50 pm
Forum: Personal Finance (Not Investing)
Topic: Concierge Care
Replies: 36
Views: 3390

Re: Concierge Care

Our practice had a meeting to describe this service they mentioned that MDs would have much more time to care for concierge patients, etc - everything except that they expected to make more money. The kept the practice open to all their existing patients it was just that concierge patients would get...
by Dandy
Fri Jul 17, 2015 6:49 am
Forum: Personal Finance (Not Investing)
Topic: Turning 65, need Medicare, but delaying Social Security
Replies: 20
Views: 1710

Re: Turning 65, need Medicare, but delaying Social Security

As I recall you can just go on the SS website and apply for Medicare. If you don't take SS they will bill you for the premium which you can put on your charge card if that suits you. You will still get bombarded with Medicare Supplement pitches from those providers since most people want to buy a Me...
by Dandy
Fri Jul 17, 2015 6:43 am
Forum: Investing - Theory, News & General
Topic: Vanguard Managed Payout Fund
Replies: 19
Views: 1721

Re: Vanguard Managed Payout Fund

Consider the Balanced Index Fund and supplement that with other fixed income, as necessary, to get the desired overall allocation. That could be muni bond funds, CDs, savings accounts etc. Simple and for unsophisticated investors easy to understand.
by Dandy
Thu Jul 16, 2015 2:42 pm
Forum: Investing - Theory, News & General
Topic: What 2008/09 has done to me
Replies: 158
Views: 18791

Re: What 2008/09 has done to me

You just opened a bit of an old wound. First layoff was in 1999 age 52? with two teenage daughters and a wife recovering from a life threatening illness. Lucky reemployed in 4 months. Second time was 2008 but I was ready to retire in a year or two anyway. Got nice separation packages. In both cases ...
by Dandy
Thu Jul 16, 2015 7:41 am
Forum: Investing - Theory, News & General
Topic: Confused about target date funds
Replies: 8
Views: 869

Re: Confused about target date funds

I think that one issue is that the bonds in TD fund are taxable bonds - with that late dated TD fund only a small percentage is in bonds now. The bond problem will become a bit more of an issue as the TD fund's glide path increases bond holdings down the road - and maybe when your tax rate is higher...
by Dandy
Thu Jul 16, 2015 6:49 am
Forum: Investing - Theory, News & General
Topic: Why Rational People are Risk Averse
Replies: 33
Views: 3639

Re: Why Rational People are Risk Averse

There is a difference in wanting more vs putting your portfolio at higher risk to get more. Almost everyone wants more. The question is if you have what you consider more than enough to fund your retirement, live a nice life and even leave a nice sum to heirs/charity - do you want to keep or take on...
by Dandy
Wed Jul 15, 2015 7:36 am
Forum: Investing - Theory, News & General
Topic: Why Rational People are Risk Averse
Replies: 33
Views: 3639

Re: Why Rational People are Risk Averse

Interesting way of looking at the utility of increasing wealth and its affect on risk tolerance. That might explain why I like Wm. Bernstein's approach of after you have won the "game" (sorry those who find investing and game in the same sentence upsetting) stop playing and his have 20-25 ...
by Dandy
Tue Jul 14, 2015 7:43 am
Forum: Investing - Theory, News & General
Topic: Cd vs corp bond
Replies: 13
Views: 1084

Re: Cd vs corp bond

As part of a fixed income strategy - no problem with choosing a Corporate Bond over a CD yielding less. Now if you were going to use 100% corporate bonds as your fixed income assets I'd say not a good idea - I like more diversity. Also, CDs rates are so variable that you need to look at them a bit d...
by Dandy
Tue Jul 14, 2015 7:27 am
Forum: Investing - Theory, News & General
Topic: Whatever happened to the advocates of CDs vs Bonds?
Replies: 58
Views: 5606

Re: Whatever happened to the advocates of CDs vs Bonds?

I have a substantial part of my fixed income in CDs. Probably an equal amount in short term bond funds, but the most fixed assets are in intermediate bond funds. The CDs are not there to outperform my bond funds, they are there to add some stability/diveresity to my asset preservation oriented portf...
by Dandy
Mon Jul 13, 2015 2:48 pm
Forum: Personal Finance (Not Investing)
Topic: Totally Stressed. Husband lost job.
Replies: 46
Views: 10548

Re: Totally Stressed. Husband lost job.

Loss of a job is a terrible thing for the whole family. Kids also really feel it. It shakes the confidence in the future. Try to offer some reassurance that you will all work together to get through this. Find some way for you child to help. Usually, it works out ok. It is good that your husband is ...
by Dandy
Sun Jul 12, 2015 8:57 am
Forum: Investing - Theory, News & General
Topic: The "No Bonds" portfolio
Replies: 80
Views: 11064

Re: The "No Bonds" portfolio

I like that people are considering fixed income alternatives other than just bond funds. But, I don't think it is wise to put all (or almost all) your eggs in CDs or EE bonds. In general, bonds are have so much less risk than stocks that they should probably remain a significant portion of most peop...
by Dandy
Sun Jul 12, 2015 8:47 am
Forum: Investing - Help with Personal Investments
Topic: Where are people putting their investment money if they see a correction coming in US stock market
Replies: 69
Views: 7573

Re: Where are people putting their investment money if they see a correction coming in US stock market

Being in retirement and with a goal of asset preservation I don't have to make decisions about where to put new money. Also, as far as managing my existing portfolio it is pretty conservative 42% equities and 58 fixed income. The fixed income includes about 1/3 intermediate bond funds (incl TIPS), 1...
by Dandy
Sat Jul 11, 2015 7:37 am
Forum: Investing - Theory, News & General
Topic: look at structured notes
Replies: 16
Views: 1342

Re: look at structured notes

I am wary of letting the government decide what investments or investment strategies "serve a social purpose". Some would say that actively managed mutual funds do not "serve a social purpose ". I get it - big government could be big brother and often overly influenced by who co...
by Dandy
Sat Jul 11, 2015 6:57 am
Forum: Investing - Theory, News & General
Topic: Why do we care about price movements? Aren't earnings all that matter?
Replies: 44
Views: 3496

Re: Why do we care about price movements? Aren't earnings all that matter?

A lot of talk about the "risk" of equities seems focused on the volatility of total returns, which is earnings + price movements. I'm not sure why a long-term investor should care about price movements since they are only relevant if you sell. In fact, if you are reinvesting your earnings...
by Dandy
Sat Jul 11, 2015 6:39 am
Forum: Investing - Help with Personal Investments
Topic: Asset Allocation Question
Replies: 7
Views: 735

Re: Asset Allocation Question

felt their advise was not always in our best interest Actually, firms have fought to make the standard that they only have to have you invest in something suitable not what is best. So I you say you want some growth and some income they can put you into almost anything -- no matter what the fees/co...

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