Search found 1864 matches

Return to advanced search

Re: Trying to learn about Brokered CD's

I use Vanguard CDs in my IRA and Ally and Discover Bank in my taxable account. One difference you didn't mention about brokered CD's is that you can't reinvest the CD interest in that CD -- it is paid in cash. If you are not sure about holding to maturity than an online bank is for you. Just watch w...
by Dandy
Thu Apr 24, 2014 8:47 am
 
Forum: Investing - Theory, News & General
Topic: Trying to learn about Brokered CD's
Replies: 24
Views: 1361

Re: Thinking about retiring early - tell me what I've missed

Not sure I have five years left in me. The reality is that I have it in me to make any business I touch become wildly successful. But it would be nice to spend more time worrying about how to make the people around me happier and less ensuring that I have seven figures in the bank when I'm 90. If y...
by Dandy
Thu Apr 24, 2014 8:30 am
 
Forum: Investing - Help with Personal Investments
Topic: Thinking about retiring early - tell me what I've missed
Replies: 39
Views: 4025

Re: Do you use a dry powder/tactical asset allocation strate

Oh my Mr Bogle kind of endorsed market timing in some circumstances but not for everyone and maybe limited to 15% of equity allocation. Once again he is less dogmatic than some of his most ardent followers. I focus on the equity vs fixed income allocation. I do have a target for "safe" liq...
by Dandy
Thu Apr 24, 2014 8:21 am
 
Forum: Investing - Help with Personal Investments
Topic: Do you use a dry powder/tactical asset allocation strategy?
Replies: 27
Views: 2204

Re: Thinking about retiring early - tell me what I've missed

Awful early to retire but you are really planning to turn a hobby into some fun/partial income. Lots of business failures are due to being undercapitalized or bad management. You really need to study the new business well to make sure you have a great business plan, enough money and will like the wo...
by Dandy
Wed Apr 23, 2014 5:39 pm
 
Forum: Investing - Help with Personal Investments
Topic: Thinking about retiring early - tell me what I've missed
Replies: 39
Views: 4025

Re: A Case for Individual Bonds?

5% treasury sound great- but that is based on having historically low interest rates and inflation for many years now. I remember trying to sign up people for 8.5% EE savings bonds and people barley hiding their smiles ad they declined. I also remember President Ford's WIN program (whip inflation no...
by Dandy
Wed Apr 23, 2014 5:29 pm
 
Forum: Investing - Help with Personal Investments
Topic: A Case for Individual Bonds?
Replies: 10
Views: 725

Re: enough to retire?

Sounds like you are cutting it a bit close. I'd rather work a few more years and delay collecting SS for higher wage earner to age 66 at a minimum. I'd rater save more and have a 40% equity allocation than retire now with a 60% equity allocation. 4% "safe" withdrawal was likely based on 60...
by Dandy
Wed Apr 23, 2014 5:16 pm
 
Forum: Investing - Help with Personal Investments
Topic: enough to retire?
Replies: 21
Views: 2326

Re: vtmfx-Vanguard Tax Managed Balanced Fund

For taxable I like the Tax managed Balanced. I don't own it but it is efficient for taxable accounts. To offset it's fixed allocation (roughly 50/50) you can have divs and/or capital gains directed to either Tax managed Intermediate fund (to lower overall equity allocation) or to Total Stock or S&am...
by Dandy
Wed Apr 23, 2014 9:37 am
 
Forum: Investing - Help with Personal Investments
Topic: vtmfx-Vanguard Tax Managed Balanced Fund
Replies: 4
Views: 690

Re: Bogleheads, About to retire, Pleases Help

Just a few comments - individual bonds are not simple and have more risk than a bond fund. You might consider having part of your fixed income allocation in CDs - usually financially challenged people understand CDs (note brokered CDs are a bit different than regular bank CDs). Target Date and Life ...
by Dandy
Wed Apr 23, 2014 9:22 am
 
Forum: Investing - Help with Personal Investments
Topic: Bogleheads, About to retire, Pleases Help
Replies: 11
Views: 1600

Re: Switching Banks

A lot depends on the required balance BofA imposes. If it is reasonable then you could just move the "excess" each month to a better account at the credit union. I am in a similar position and just move excess rather than go through the hassle of changing all the things tied to my BofA che...
by Dandy
Tue Apr 22, 2014 9:07 am
 
Forum: Personal Finance (Not Investing)
Topic: Switching Banks
Replies: 30
Views: 2428

Re: Any Interesting Income Alternatives to Bonds

Reaching for yield is usually a bad idea. The alternatives are usually more risky than realized and react or over react to market changes in unanticipated ways. Many are sold (touted) by sales people who know that many are desperate for yield who don't understand the risk or the expense. One of many...
by Dandy
Tue Apr 22, 2014 8:51 am
 
Forum: Investing - Theory, News & General
Topic: Any Interesting Income Alternatives to Bonds
Replies: 15
Views: 1754

Re: Live Now, Live Later?

Sounds like you are in very good financial shape. I think you can splurge a bit and enjoy life. Hard core savers rarely go hog wild on spending. Do some capital expenditure planning and budgeting. May be an exotic vacation this year, some home improvements next year or two, a boat in year 4 etc. See...
by Dandy
Mon Apr 21, 2014 4:50 pm
 
Forum: Personal Finance (Not Investing)
Topic: Live Now, Live Later?
Replies: 37
Views: 3648

Re: Hit your #, Still want to work, does your savings % chan

A lot depends on your age, health and how conservative your "number" is. Let's assume you will live till 90. Retiring at 60 means 30 years vs at 65 only 25 years worth of funding. That is obvious but more significant than you might realize. That is 5 years more inflation, health risk, mark...
by Dandy
Mon Apr 21, 2014 4:29 pm
 
Forum: Personal Finance (Not Investing)
Topic: Hit your #, Still want to work, does your savings % change?
Replies: 47
Views: 3883

Re: How is your Tax-Advantage Portfolio Different?

Once you have established your overall allocation, the riskiest equities go nicely in your Roth. Roth's don't have an RMD requirement vs an IRA. For me that means I want to have my much larger IRA grow at a slower pace than my Roth. This will curb the size of my RMD which otherwise might generate mo...
by Dandy
Mon Apr 21, 2014 4:05 pm
 
Forum: Investing - Theory, News & General
Topic: How is your Tax-Advantage Portfolio Different?
Replies: 17
Views: 1030

Re: Trying to learn about Brokered CD's

Brokered CDs can be sold before maturity - but may not have buyers - Vanguard (I believe) doesn't provide a market so you may wish to sell but have to wait or take a haircut to sell. So, it is best to be pretty sure you are going to hold to maturity. Brokered CDs don't reinvest the dividends they pa...
by Dandy
Mon Apr 21, 2014 3:55 pm
 
Forum: Investing - Theory, News & General
Topic: Trying to learn about Brokered CD's
Replies: 24
Views: 1361

Re: You can lead a horse to water... [Giving financial advic

I'm surprised by so many responses that say these people can't change. Sometimes you have to hit bottom to change so I wouldn't automatically throw in the towel - or much more financial support. If/when they realize that they are largely responsible for their situation and want to change - then havi...
by Dandy
Sun Apr 20, 2014 12:36 pm
 
Forum: Personal Finance (Not Investing)
Topic: You can lead a horse to water... [Giving financial advice]
Replies: 50
Views: 5182

Re: paydown strategy for mortgage

If jobs are fairly secure and you have covered the insurance bases e.g. health, life, disability, homeowner/auto/flood/hurricane and umbrella insurance you have little risk in paying off the mortgage. If the higher the mortgage rate the better the payoff decision. Hating debt is a good thing. If the...
by Dandy
Sun Apr 20, 2014 12:20 pm
 
Forum: Personal Finance (Not Investing)
Topic: paydown strategy for mortgage
Replies: 40
Views: 3062

Re: POLL: If Eligible For Social Security .....

I am delaying till 70 and have no regrets -- so far. I am fortunate to be able to delay and fund retirement expenses without my SS. I am also trying to do some Roth conversions so don't want to add SS income at this time. My portfolio today is much higher than when I retired 6 years ago thanks to a ...
by Dandy
Sun Apr 20, 2014 11:35 am
 
Forum: Personal Finance (Not Investing)
Topic: POLL: If Eligible For Social Security .....
Replies: 71
Views: 3215

Re: Does this strategy invite unnecessary risk?

He thinks that if you are relatively young and have many years to retirement, that you should have more equities and less bonds. He also believes that you should self evaluate your ability to withstand risk and market crashes while staying the course. He uses bonds as a stablizer to minimize that r...
by Dandy
Sun Apr 20, 2014 11:18 am
 
Forum: Investing - Theory, News & General
Topic: Does this strategy invite unnecessary risk?
Replies: 42
Views: 2569

Re: POLL: why carry cash?

Small purchases I use cash, larger ones credit card. Almost never use a debit card. I don't dig for pennies to give exact change - I feel your pain in that respect. In many cases using a credit card is as fast or getting close to as fast as using a debit card. Pretty soon using your phone will make ...
by Dandy
Sun Apr 20, 2014 9:07 am
 
Forum: Personal Finance (Not Investing)
Topic: POLL: why carry cash?
Replies: 225
Views: 7579

Re: POLL: If Eligible For Social Security .....

I'm not surprised. Waiting is probably best for most people who are healthy, married and can afford to wait. For those in that position I haven't heard many "experts" that I respect advising anything different. If circumstances change then you can collect earlier. It would be great to get ...
by Dandy
Sun Apr 20, 2014 8:56 am
 
Forum: Personal Finance (Not Investing)
Topic: POLL: If Eligible For Social Security .....
Replies: 71
Views: 3215

Re: Does this strategy invite unnecessary risk?

Is it a bit riskier? slightly. both are more risky than the norm. But with risk come potential greater rewards. US small caps have had a great run lately and emerging markets have not. A slight tilt toward either is not a very great risk or a very great benefit.
by Dandy
Sun Apr 20, 2014 8:40 am
 
Forum: Investing - Theory, News & General
Topic: Does this strategy invite unnecessary risk?
Replies: 42
Views: 2569

Re: Build Cash Reserves or Contribute to Taxable Account.

You haven't given much info. One key question is when do you plan to take SS? When I got close to retirement I kept a lot of "extra" money in cash. That was in 2008 so it was a wise? very lucky decision. I am using the "safe" money to fund some retirement expenses till age 70 for...
by Dandy
Sun Apr 20, 2014 8:35 am
 
Forum: Investing - Help with Personal Investments
Topic: Build Cash Reserves or Contribute to Taxable Account.
Replies: 5
Views: 1066

Re: Boglehead used car problem. Run It or ditch it?

As a former frugal car owner I would say replace it not for any insight on mechanical performance but for updated safety. In 9 years there have been major advances in car safety. I would get a new car or newer used car. Changes in safety have changed the equation for me. I used to enjoy getting the ...
by Dandy
Sat Apr 19, 2014 9:19 am
 
Forum: Personal Consumer Issues
Topic: Boglehead used car problem. Run It or ditch it?
Replies: 26
Views: 2080

Re: Bernstein retirement plan

I bet you can do the same thing using a 2% withdrawal rate. If you have more and take less risk with it, your money is more likely to last. I would focus on those who have enough to make the decision to focus their allocation a la Bernstein. i.e. those who have won the game. Bernstein suggests a ve...
by Dandy
Sat Apr 19, 2014 8:55 am
 
Forum: Investing - Help with Personal Investments
Topic: Bernstein retirement plan
Replies: 38
Views: 5061

Re: SS Strategy Metric

I want to maximize my retirement income. My goal is to take SS at age 70. The beauty is that if circumstances change I can take it earlier if I want. If the market didn't recover from the crash of 2008-9 maybe I would have taken it early. I think people spend too much time trying to do SS math e.g. ...
by Dandy
Fri Apr 18, 2014 5:40 pm
 
Forum: Personal Finance (Not Investing)
Topic: SS Strategy Metric
Replies: 55
Views: 3123

Re: Can you please convince me to get a credit card?

There are certainly a bunch of concerns about people misusing their credit cards. If you don't see a value in a credit card then you probably wouldn't misuse it and get in trouble. I have used a credit card for about 50 years and I think I might have paid a late fee once or twice. I always pay it of...
by Dandy
Fri Apr 18, 2014 5:33 pm
 
Forum: Personal Finance (Not Investing)
Topic: Can you please convince me to get a credit card?
Replies: 101
Views: 5556

Re: Bernstein retirement plan

I think we need to remember this is a guideline/rule of thumb. If you have just enough for your number - 20 or 25 years safe might not be your best option. I think that a safe portfolio of short term bonds and an intermediate term CD ladder will tend to keep up with moderate inflation fairly well. I...
by Dandy
Fri Apr 18, 2014 5:05 pm
 
Forum: Investing - Help with Personal Investments
Topic: Bernstein retirement plan
Replies: 38
Views: 5061

Re: 15 year vs 30 year fixed

Usually the shorter the term the less interest in dollars you will pay over the life of the loan. Nothing magic abut that. A 10 year mortgage will probably pay less interest than a 15 year - wait a 5 year will result in even less interest. If you can afford the shorter term without short changing ot...
by Dandy
Fri Apr 18, 2014 4:20 pm
 
Forum: Personal Finance (Not Investing)
Topic: 15 year vs 30 year fixed
Replies: 62
Views: 5806

Re: Bernstein retirement plan

I don't manage 2 separate portfolios but always do the calculation to make sure I have enough "safe" assets to fund 20-25 years of residual expenses. I am fortunate to have a decent "excess" over those "safe" assets. I don't know what I would do if my total assets were ...
by Dandy
Fri Apr 18, 2014 8:11 am
 
Forum: Investing - Help with Personal Investments
Topic: Bernstein retirement plan
Replies: 38
Views: 5061

Re: 15 year vs 30 year fixed

I would look to a lower 30 year. The lower required monthly payments gives you options e.g. pay down/off school loans, fund retirement, save for children's education, pay more than the minimum on the mortgage. You pay a bit more and likely for longer to have those options but I like having options.
by Dandy
Sun Apr 13, 2014 10:40 am
 
Forum: Personal Finance (Not Investing)
Topic: 15 year vs 30 year fixed
Replies: 62
Views: 5806

Re: Was Wondering Why Windsor/Wellesley/Wellington?

Wellington and Wellesley are often given a "free" pass by many on this forum that usually pans active managed funds. Free pass may not do them justice since they do have very good track records and relatively low expenses/turnover. They do not fit the basic Boglehead model of low cost, bro...
by Dandy
Sun Apr 13, 2014 10:33 am
 
Forum: Investing - Theory, News & General
Topic: Was Wondering Why Windsor/Wellesley/Wellington?
Replies: 28
Views: 3448

Re: Question about Bonds

Actually, in your mid 30" you biggest mistake would probably be being too conservative. That being said I would agree that lower equity allocation might make sense. You have plenty of time to ride out the dip in an intermediate bond fund due to rising interest rates. If the goal is for your fix...
by Dandy
Sun Apr 13, 2014 10:17 am
 
Forum: Investing - Help with Personal Investments
Topic: Question about Bonds
Replies: 4
Views: 656

Re: Bond Portion of Retirement Account

I like you bond fund choices. I would also consider adding some CDs. Vanguard currently offers a 5yr at 1.95%, a 7yr at 2.7% and a 10yr at 3.35% (check to make sure). Their shorter term CDs are not competitive. Since brokerage CDs pay out their interest you can decide to have the CD interest investe...
by Dandy
Fri Apr 11, 2014 10:28 am
 
Forum: Investing - Help with Personal Investments
Topic: Bond Portion of Retirement Account
Replies: 7
Views: 881

Re: Checking/Saving Account for Student

It will be interesting to see what changes, if any, Ally makes after their IPO and the US gov loosens up on some of it's restrictions. They were restricted on how much interest they could pay because banks that weren't bailed out were getting hurt when Ally paid leading rates. We will see what their...
by Dandy
Thu Apr 10, 2014 4:02 pm
 
Forum: Personal Finance (Not Investing)
Topic: Checking/Saving Account for Student
Replies: 13
Views: 783

Re: Help in Allocating Vanguard Funds

Can you give me examples of how to rebalance without incurring taxes by having both equities and fixed income in tax advantaged and taxable accounts? If you have to sell equities and buy fixed income or vice versa to rebalance there are no tax implications if you do it in your IRA. You can also adj...
by Dandy
Thu Apr 10, 2014 3:55 pm
 
Forum: Investing - Help with Personal Investments
Topic: Help in Allocating Vanguard Funds
Replies: 11
Views: 873

Re: Help in Allocating Vanguard Funds

Dandy, Thank you for the kind reply. Do you recommend using the 3 fund portfolio in both the taxed account and the IRA's? The usual rule of thumb is all the fixed income in tax advantaged and most of the equities in taxable. High dividend equities (e.g. REITs) are better off in tax advantaged if yo...
by Dandy
Wed Apr 09, 2014 10:43 pm
 
Forum: Investing - Help with Personal Investments
Topic: Help in Allocating Vanguard Funds
Replies: 11
Views: 873

Re: Checking/Saving Account for Student

Not familiar with all of Capital One account features. I would check into Ally Bank. Pays interest, free checks, all ATM fees reimbursed, 24/7 service if those features are better. Both my adult children use it and are happy.
by Dandy
Wed Apr 09, 2014 9:59 am
 
Forum: Personal Finance (Not Investing)
Topic: Checking/Saving Account for Student
Replies: 13
Views: 783

Re: This time it's different?

You are right to point out that retirees like me had some excellent tail winds during much of our accumulation phase. Of course we both face what looks like less favorable conditions currently. The focus on living below your means and saving is a good approach at any time but especially now. Histori...
by Dandy
Wed Apr 09, 2014 9:36 am
 
Forum: Investing - Theory, News & General
Topic: This time it's different?
Replies: 16
Views: 2468

Re: Help in Allocating Vanguard Funds

Welcome - I'm sure it will be difficult to go from so active to passive. I would suggest you do a limited number of funds so there won't be a temptation to play with them. The 3 fund portfolio is a good place to start: Total Stock Market, Total International Stock Market, and Total Bond Market. I wo...
by Dandy
Wed Apr 09, 2014 9:23 am
 
Forum: Investing - Help with Personal Investments
Topic: Help in Allocating Vanguard Funds
Replies: 11
Views: 873

Re: How often do you rebalance to maintain your AA

First I keep an eye on the major equity vs fixed income allocation vs looking at every sub allocation during the year. If that varies by a few percent I will usually step in. The hot equity market in 2013 resulted in a few reductions to equities. I try to avoid large rebalancing moves. That said my ...
by Dandy
Wed Apr 09, 2014 8:51 am
 
Forum: Investing - Help with Personal Investments
Topic: How often do you rebalance to maintain your AA
Replies: 35
Views: 1683

Re: Do I take the separation package offer?

I was almost in the exact situation several years ago. I planned to retire at 62 and was offered a nice package at just past 60. The other key factor is I really didn't have a choice! But if I did I would have taken it. You are almost being paid until your target retirement age, but don't have to ac...
by Dandy
Tue Apr 08, 2014 10:47 am
 
Forum: Personal Finance (Not Investing)
Topic: Do I take the separation package offer?
Replies: 52
Views: 4933

Re: Investment amount instead of allocation percentage

Not exactly. I do think people tend to look at risk in percentage terms rather than dollars. In the accumulation stage I had a certain dollar target for my stable value fund and put excess mostly into equities. In retirement I tend to have a base dollar amount "safe" and then put excess mo...
by Dandy
Tue Apr 08, 2014 10:24 am
 
Forum: Investing - Theory, News & General
Topic: Investment amount instead of allocation percentage
Replies: 21
Views: 1536

Re: Delaying Social Security - best long-term investment?

In this post I think the use of term best Investment is a bad way to look at when to take SS. It focuses on the breakeven point when taking SS at 62 vs 66 (or 70). Yes if you take it at 62 and die at 75 or 80 you probably will have done better dollar wise rather than delaying SS. Whether your surviv...
by Dandy
Mon Apr 07, 2014 11:44 am
 
Forum: Investing - Theory, News & General
Topic: Delaying Social Security - best long-term investment?
Replies: 78
Views: 3766

Re: Best option for high interest earning no fee checking?

I have a no interest no fee local checking account. I also have a savings account at Discover Bank (Ally, Barclays would be great also). Once set up it is easy to move money between Vanguard and either bank. Just a few clicks and a few days. You aren't going to get rich with the less than 1% interes...
by Dandy
Mon Apr 07, 2014 7:51 am
 
Forum: Investing - Help with Personal Investments
Topic: Best option for high interest earning no fee checking?
Replies: 19
Views: 1639

Re: Why pay off your house?

I could earn 3.10% after tax if I invested the money in Long-Term Tax-Exempt, and that's good compensation for the slight credit risk. Bonds and bond funds have credit and interest rate risk. Agreed not necessarily lose your shirt risk. Paying off a mortgage has no risk. Why not take out more loan ...
by Dandy
Sun Apr 06, 2014 4:46 pm
 
Forum: Investing - Help with Personal Investments
Topic: Why pay off your house?
Replies: 119
Views: 8620

Re: Why pay off your house?

Assuming you have decent liquidity and are on track for retirement savings having a mortgage rather than paying it off is not always logical. Sure you can invest the money and it may or may not grow. Paying off the mortgage is a sure thing. There are no safe "investments" that pay more tha...
by Dandy
Sun Apr 06, 2014 2:58 pm
 
Forum: Investing - Help with Personal Investments
Topic: Why pay off your house?
Replies: 119
Views: 8620

Re: Financial question about a Doctor’s Visit

Doctors have many conflicts of interests from recommending certain medicines to ownership participation in testing labs, surgical centers, medical buildings etc. Two examples: 1. My eye doctor is an equity partner in an eye surgery center. It is very efficient, they have the process down to a scienc...
by Dandy
Sun Apr 06, 2014 11:34 am
 
Forum: Personal Finance (Not Investing)
Topic: Financial question about a Doctor’s Visit
Replies: 77
Views: 3698

Re: Delaying Social Security - best long-term investment?

I don't focus on SS investment return or what age the payback would be the same by waiting until 70 vs taking the SS at 62. Many people don't have the luxury of waiting and some do. For those that do, if they are in good health, have good genes and can live comfortably without taking SS early I thin...
by Dandy
Sun Apr 06, 2014 10:42 am
 
Forum: Investing - Theory, News & General
Topic: Delaying Social Security - best long-term investment?
Replies: 78
Views: 3766

Re: Cold Feet Investing

I always try to remind people that there is no safe place to put your money. "Safe" places like bank accts or CDs usually don't keep up with inflation so you lose purchasing power, bonds have default risks and lose value when interest rates rise, stocks? that is where most people feel the ...
by Dandy
Sun Apr 06, 2014 9:40 am
 
Forum: Investing - Help with Personal Investments
Topic: Cold Feet Investing
Replies: 9
Views: 1268

Re: Why pay off your house?

Liquidity is important so I wouldn't leave myself short to pay off the mortgage. With a paid off house you have freed up years of extra monthly income to invest and protected yourself somewhat from losing your home in a bad economy/job loss. Having debt just to maintain a tax deduction for the inter...
by Dandy
Sun Apr 06, 2014 9:27 am
 
Forum: Investing - Help with Personal Investments
Topic: Why pay off your house?
Replies: 119
Views: 8620
Next

Return to advanced search