Search found 2129 matches

Return to advanced search

Re: Can it be wrong to be too risk averse?

You need an awfully lot of safe assets in retirement to live on. I believe Groucho Marx was wealthy and invested only in government bonds. When someone said they don't pay enough he supposedly said "they do if you have enough of them". Having enough of them is the challenge. Most need some...
by Dandy
Tue Jul 22, 2014 7:02 pm
 
Forum: Investing - Theory, News & General
Topic: Can it be wrong to be too risk averse?
Replies: 49
Views: 2091

Re: Total Bond Yield vs. 5 year CD Interest Rates

I didn't complete the survey. Why is it either or? I have done both. Total bond has some diversity and some risk - a 5yr CD is safe but with some risk/penalty if you redeem early. I don't know where interest rates are going to be in 5 years. There are pros and cons to both -- actually having some of...
by Dandy
Fri Jul 18, 2014 2:18 pm
 
Forum: Investing - Theory, News & General
Topic: Total Bond Yield vs. 5 year CD Interest Rates
Replies: 16
Views: 2248

Re: Adding Corporates to Total Bond Market Index

Basis of retirees being less experienced ... No factual basis just retirees I talk to they seem especially ill at ease with bonds and bond funds. Having to explain impact of rising rates, that muni funds cap gains are taxable etc. Many had Stable Value funds in their accounts and if they invested i...
by Dandy
Thu Jul 17, 2014 12:14 pm
 
Forum: Investing - Theory, News & General
Topic: Adding Corporates to Total Bond Market Index
Replies: 71
Views: 5569

Re: Adding Corporates to Total Bond Market Index

As noted I would add Corporate bonds and some of them being shorter duration than total bond. I'm not sure how duration is calculated but have basic trust that it is reasonable. Since 2008 there have been a lot of investors new to bond funds. I know that there is concern that when interest rates ris...
by Dandy
Thu Jul 17, 2014 11:09 am
 
Forum: Investing - Theory, News & General
Topic: Adding Corporates to Total Bond Market Index
Replies: 71
Views: 5569

Re: Adding Corporates to Total Bond Market Index

Total Bond fund is an excellent bond fund. But it isn't as diversified as the Total Stock Market or Total International Stock market funds. While total bond is still a large investment, I have added Investment Grade Intermediate and Short term bond funds to increase corp bond exposure. I also, hold ...
by Dandy
Thu Jul 17, 2014 9:34 am
 
Forum: Investing - Theory, News & General
Topic: Adding Corporates to Total Bond Market Index
Replies: 71
Views: 5569

Re: Should I use my margin to buy bonds?

I can't believe all these leverage questions - must mean we are in a bubble of some sort. If you are 95% or so in equities and you want to add bonds -- trim your equities a bit or adjust future contributions. Interest rates are at historic lows which means your leverage interest costs will be low - ...
by Dandy
Thu Jul 17, 2014 9:19 am
 
Forum: Investing - Theory, News & General
Topic: Should I use my margin to buy bonds?
Replies: 41
Views: 3373

Re: Should I use margin to buy a balanced fund?

Using leverage to buy a balanced fund seems like a really bad idea. You seem determined to do it. Leverage works great until it doesn't then it is usually really, really bad. If you are behind your savings goal -- try saving more/reducing expenses rather than using leverage.
by Dandy
Thu Jul 17, 2014 9:12 am
 
Forum: Investing - Theory, News & General
Topic: Should I use margin to buy a balanced fund?
Replies: 89
Views: 4791

Re: Withdrawal Rate and Net Worth

Not me. A house is an expensive often illiquid quasi investment. It is illiquid usually at just the wrong time - when broad economic conditions are iffy or worse. Taking it into account in some background way when determining your withdrawal rate might be ok but actually basing withdrawals on it see...
by Dandy
Thu Jul 17, 2014 9:07 am
 
Forum: Investing - Theory, News & General
Topic: Withdrawal Rate and Net Worth
Replies: 16
Views: 1781

Re: Living on Dividends

I'm assuming you are bright not by your own assessment but by more objective measures like your grades etc. You are forward thinking and aggressive which are good qualities for a bright young person. So, you should have much success but that is not guaranteed. I think of bright, aggressive people I ...
by Dandy
Thu Jul 17, 2014 9:02 am
 
Forum: Investing - Help with Personal Investments
Topic: Living on Dividends
Replies: 16
Views: 3550

Re: Withdrawl from Target Retirement or Life Strategy Fund

no matter how many different investments you have - you still have to withdraw from one of them. How do you pick? the one that has appreciated the most? OK but you might be losing out on some further momentum and/or you might have been using that fund to rebalance to an investment that underperforme...
by Dandy
Thu Jul 17, 2014 8:25 am
 
Forum: Investing - Help with Personal Investments
Topic: Withdrawl from Target Retirement or Life Strategy Fund
Replies: 11
Views: 979

Re: Article: Conversation with John Bogle - Part II

The leader remains much more flexible than many of his followers.
by Dandy
Wed Jul 16, 2014 2:47 pm
 
Forum: Investing - Theory, News & General
Topic: Article: Conversation with John Bogle - Part II
Replies: 11
Views: 1450

Re: What To Do During A Correction In Stocks?

Dandy, read Nisi's post just prior to yours. Your approach requires magic to work. Nisi's does not. The recommended approach would be to lower your equity percentage to a level that you will be able to tolerate through such swings . Thanks - Nisi has a reasonable approach. I don't think mine is muc...
by Dandy
Wed Jul 16, 2014 2:41 pm
 
Forum: Investing - Help with Personal Investments
Topic: What To Do During A Correction In Stocks?
Replies: 31
Views: 3619

Re: Article: Conversation with John Bogle - Part II

The biggest mistake investors make is looking backward at performance and thinking it’ll recur in the future. I get the main point. But it always amuses me that we often do that. e.g. safe withdrawals, re balancing, stocks will do better than fixed income, fire calc, etc. We all base some of our mo...
by Dandy
Wed Jul 16, 2014 9:40 am
 
Forum: Investing - Theory, News & General
Topic: Article: Conversation with John Bogle - Part II
Replies: 11
Views: 1450

Re: Bet it ALL on Small Cap Value when you're young

Duh :oops: ? One of the main ideas of sane Boglehead investing vs gambling is diversification. Now if you are a true believer in small cap value maybe over allocate to it a bit but I wouldn't bet the farm on any one idea.
by Dandy
Wed Jul 16, 2014 9:25 am
 
Forum: Investing - Theory, News & General
Topic: Bet it ALL on Small Cap Value when you're young
Replies: 64
Views: 6072

Re: [Poll] How often do you re-balance?

The best way to re balance is via adjusting your contributions. Alas, no more contributions in retirement. My target date to rebalance is once a year. However, I hate to move large amounts of money at one time. So, in 2013 for example, I did some minor re balancing from equities during the year as a...
by Dandy
Wed Jul 16, 2014 9:18 am
 
Forum: Investing - Theory, News & General
Topic: [Poll] How often do you re-balance?
Replies: 25
Views: 2187

Re: Cash allocation in a portfolio

Since cash includes short term bonds/funds I have about 20% in cash which is about 1/3 of my fixed income allocation. I have this much cash for several reasons: 1. "Guaranteed" funding to age 70 to collect SS 2. A 5 yr CD ladder so I don't have to sell equities in a severe, prolonged marke...
by Dandy
Wed Jul 16, 2014 9:06 am
 
Forum: Investing - Theory, News & General
Topic: Cash allocation in a portfolio
Replies: 42
Views: 3584

Re: What To Do During A Correction In Stocks?

I favor a different approach smaller rebalancing and stopping at a certain point, especially in retirement. If the market is declining and you have bands e.g. 5% rebalance for a few 5% declines. If the market keeps declining rebalance lesser amounts. Eventually, stop rebalancing until the market sta...
by Dandy
Wed Jul 16, 2014 8:38 am
 
Forum: Investing - Help with Personal Investments
Topic: What To Do During A Correction In Stocks?
Replies: 31
Views: 3619

Re: Please advise me on "Brokered CDs"

you need to understand coupon rates vs yield to maturity and if the CDs are callable etc. Also, brokered CDs might not be easy to sell before maturity and might sell at a loss. Longer term CDs might not keep up with inflation and if interest rates rise what seems like an attractive yield now might n...
by Dandy
Wed Jul 16, 2014 7:22 am
 
Forum: Investing - Help with Personal Investments
Topic: Please advise me on "Brokered CDs"
Replies: 3
Views: 559

Re: Has anyone tried/used the Guyton/Klinger method for a VP

My concern with any withdrawal strategy, especially one that is complicated, is that it will not be manageable in later years for me and my wife or helpful children. Also, anything that can drastically change the amount of withdrawal is problematic at least for me. I think most people will manage th...
by Dandy
Mon Jul 14, 2014 11:55 pm
 
Forum: Investing - Theory, News & General
Topic: Has anyone tried/used the Guyton/Klinger method for a VPW
Replies: 34
Views: 2837

Re: Allocation in Retirement

2.5 to 3% should be very doable with most balanced investments. Interest rates are bound to go up (but when??) so you might want to consider some allocation to VG brokerage CDs e.g. a 10yr at 3.35% and a 7yr at 2.7%. You could also check Fidelity which had similar rates recently. "Locking"...
by Dandy
Mon Jul 14, 2014 11:22 pm
 
Forum: Investing - Help with Personal Investments
Topic: Allocation in Retirement
Replies: 7
Views: 1292

Re: [Poll] Are you more risk averse than average?

Do not fear risk,the biggest risk is running out of money before you run out of time :happy High equity allocation does not guarantee that you won't run out of money before running out of time. You can fear taking risk so much that you risk running out of money and you can be fearless and have a hi...
by Dandy
Mon Jul 14, 2014 12:40 pm
 
Forum: Investing - Theory, News & General
Topic: [Poll] Are you more risk averse than average?
Replies: 36
Views: 2591

Re: [Poll] Are you more risk averse than average?

It is hard to tell. I think that in general more aggressive investors are more vocal. Being risk averse is kind of wimpy compared to being aggressive. So, I don't think too many conservative investors make a big point about it. Just like index fund investors are sometimes viewed as wimpy compared to...
by Dandy
Sun Jul 13, 2014 11:59 pm
 
Forum: Investing - Theory, News & General
Topic: [Poll] Are you more risk averse than average?
Replies: 36
Views: 2591

Re: Thoughts on 100% stock allocation for 33 year old

There are respected people on both sides - I think most who favor 100% for the young often mean people in their 20's. Some analysis I believe indicate that is not even the best allocation for maximizing gains over the long run - that at least 20% in bonds (fixed income to me) is a nice balance of ri...
by Dandy
Sun Jul 13, 2014 3:21 pm
 
Forum: Investing - Help with Personal Investments
Topic: Thoughts on 100% stock allocation for 33 year old
Replies: 85
Views: 6119

Re: Thoughts on 100% stock allocation for 33 year old

There are respected people on both sides - I think most who favor 100% for the young often mean people in their 20's. Some analysis I believe indicate that is not even the best allocation for maximizing gains over the long run - that at least 20% in bonds (fixed income to me) is a nice balance of ri...
by Dandy
Sun Jul 13, 2014 3:21 pm
 
Forum: Investing - Help with Personal Investments
Topic: Thoughts on 100% stock allocation for 33 year old
Replies: 85
Views: 6119

Re: Brokered CD's vs Bonds

for the brokered CD the value will only go down if you sell my vanguard online recap of my holdings shows the value of my brokerage CDs changing each trading day. Usually down if the Treasury yields are up and vice versa. I'm not sure of the exact trigger of the change i.e. is it tied to the market...
by Dandy
Sun Jul 13, 2014 1:57 pm
 
Forum: Investing - Theory, News & General
Topic: Brokered CD's vs Bonds
Replies: 24
Views: 2648

Re: Who else hates choosing a car?

I don't have too much problems choosing a car -- it is the buying experience I hate. There are always trade offs when making a car purchase - lots to consider. Here is how I decide: 1. What size car do I need/want? Am I commuting a long distance? driving to the train station? Using it for family vac...
by Dandy
Sun Jul 13, 2014 9:48 am
 
Forum: Personal Consumer Issues
Topic: Who else hates choosing a car?
Replies: 75
Views: 6270

Re: Brokered CD's vs Bonds

I don't think you should go for brokered CDs if you are pretty sure you are going to sell if interest rates change significantly. I believe they are much less liquid than normal bonds and that might mean delays and/or sales price underperformance. They are much better choice for a buy and hold strat...
by Dandy
Sun Jul 13, 2014 7:37 am
 
Forum: Investing - Theory, News & General
Topic: Brokered CD's vs Bonds
Replies: 24
Views: 2648

Re: Safe 401k withdrawal rate?

Wow. You are really saving like champs. You are doing the most important thing to have a secure retirement. I hope you are also enjoying life. In my opinion, for most, there is no true set it and forget it safe withdrawal rate anywhere near 4%. But, 4% is a good starting point . Each year or so you ...
by Dandy
Sun Jul 13, 2014 7:15 am
 
Forum: Investing - Help with Personal Investments
Topic: Safe 401k withdrawal rate?
Replies: 5
Views: 868

Re: Repair or replace old Taurus?

Newer cars are so much better and safer. You got great value out of this car - time to move on. It used to make a lot of sense to hold on to cars to squeeze every dime worth of value out of them. Now, if you get 10 years and 100k you are doing fine. Safety is often overlooked when making this decisi...
by Dandy
Fri Jul 11, 2014 6:17 pm
 
Forum: Personal Consumer Issues
Topic: Repair or replace old Taurus?
Replies: 32
Views: 2701

Re: Longevity Annuities

Well odds always go to an insurance company - if they were in every customer's favor the insurance company would go out of business. If you insure your house against fire the odds of collecting might be 1 in 5,000. So the odds of collecting fire insurance are not in your favor - you are paying a sma...
by Dandy
Fri Jul 11, 2014 6:08 pm
 
Forum: Investing - Theory, News & General
Topic: Longevity Annuities
Replies: 18
Views: 2507

Re: What to invest in with Vanguard?

I think that young people who are new to investing should start out a bit conservative. You really only get a feel for your real risk tolerance after the market takes a bit hit. But, it is also useful to experience the more frequent ups and downs and the emotions that go with them. If you were inves...
by Dandy
Fri Jul 11, 2014 8:58 am
 
Forum: Investing - Help with Personal Investments
Topic: What to invest in with Vanguard?
Replies: 19
Views: 2661

Re: Boglehead Rules Of Thumb To Investing?

Bugleweed ? late night typo/thinko?

Age in bonds?
Expenses (investment) matter?
by Dandy
Fri Jul 11, 2014 7:00 am
 
Forum: Investing - Help with Personal Investments
Topic: Boglehead Rules Of Thumb To Investing?
Replies: 23
Views: 3085

Re: Asset Allocation At or Near Retirement?

Retired 66 with spousal SS and pension - waiting till 70 for full SS. equity allocation 42% fixed income 58%. While it is interesting to see how other retirees allocate so much depends on your risk tolerance, financial situation, health and expenses. My fixed income allocation is allocated about 1/3...
by Dandy
Thu Jul 10, 2014 9:34 am
 
Forum: Investing - Theory, News & General
Topic: Asset Allocation At or Near Retirement?
Replies: 51
Views: 4325

Re: The value of a ROTH conversion in retirement

So you're saying that if your RMDs were just a bit more than you needed, you would still do the conversion?

My error - double negative - clarification: if my RMD was just a bit more than needed I would NOT convert to a Roth.
by Dandy
Thu Jul 10, 2014 9:10 am
 
Forum: Investing - Theory, News & General
Topic: The value of a ROTH conversion in retirement
Replies: 21
Views: 2785

Re: IRS limits direct deposts of refunds to fight Identity T

Interesting problem for the IRS. It doesn't seem to solve the problem. They could hold up all refunds or all refunds over $X dollars until April 15th to see duplicate filings- but that might bring torches and pitchfork crowds. How about holding up/verifying when the direct deposit bank routing/accou...
by Dandy
Thu Jul 10, 2014 8:44 am
 
Forum: Personal Finance (Not Investing)
Topic: IRS limits direct deposts of refunds to fight Identity Theft
Replies: 25
Views: 3295

Re: Rent Out House or Sell House?

I'm not a real estate investment fan nor knowledgeable in the ways of being a landlord. To me to be successful you have to love it not just the numbers. Finding/evicting tenants, collecting rents, recordkeeping, financing, repairing damages, legal issues etc. They can be annoying or they can be view...
by Dandy
Thu Jul 10, 2014 8:27 am
 
Forum: Personal Finance (Not Investing)
Topic: Rent Out House or Sell House?
Replies: 9
Views: 1322

Re: How I look at $ in the real world vs my retirement accou

Advancing age and size of the equity exposure gradually make the risk more real. As you noted dismissing $4 on a $500 investment at (I assume) a young age is easy. It is a small amount and 8/10th of a percent. Even a 20% drop would seem "mild". At age 58 and a $500k equity exposure and the...
by Dandy
Thu Jul 10, 2014 8:18 am
 
Forum: Personal Finance (Not Investing)
Topic: How I look at $ in the real world vs my retirement accounts
Replies: 45
Views: 5631

Re: The value of a ROTH conversion in retirement

I look at it as reducing RMDs in 2 ways - one is taking assets out of TIRA and the other is by taking equity assets out of the TIRA (and holding them in my Roth) I am reducing the growth of the TIRA over decades. Of course if the equity market goes on a long bear market run that strategy might not b...
by Dandy
Thu Jul 10, 2014 7:57 am
 
Forum: Investing - Theory, News & General
Topic: The value of a ROTH conversion in retirement
Replies: 21
Views: 2785

Re: Asset Allocation At or Near Retirement?

Lastly, the one thing I don't understand with folks in retirement is they get too conservative the minute they declare there are retired. The OP was conservative well before retirement. For most people it makes sense to go conservative in retirement (how conservative is "too conservative"...
by Dandy
Thu Jul 10, 2014 7:30 am
 
Forum: Investing - Theory, News & General
Topic: Asset Allocation At or Near Retirement?
Replies: 51
Views: 4325

Re: What order when converting TIRA to Roth?

I'm converting TIRA equities to Roth for 2 reasons: 1. want to house the most likely to grow in Roth and 2. Want to take as much growth out of my TIRA to help minimize my RMDs. My overall equity allocation will be the same.
by Dandy
Thu Jul 10, 2014 6:57 am
 
Forum: Investing - Help with Personal Investments
Topic: What order when converting TIRA to Roth?
Replies: 12
Views: 1082

Re: Longevity Annuities

depending on how the new longevity annuity (QLAC) is actually structured and expensed by Insurance cos. it may have a nice role for some. 1. Reduce their RMD (and taxes) from age 70 to age 80 or 85 - higher income and taxes once payments start 2. Allow for increased spending during age 70 to age 80 ...
by Dandy
Wed Jul 09, 2014 8:30 am
 
Forum: Investing - Theory, News & General
Topic: Longevity Annuities
Replies: 18
Views: 2507

Re: How many veteran investor have LARGE MAJORITY in three-f

On the equity side a bit of REIT Index and a bit more or Small Cap Index is the only variance. On the Fixed Income side Total Bond fund is just an important part of my allocation. Also have Intermediate and short term: TIPs, Investment Grade, Tax Exempt funds and CDs. While Total Bond is a very good...
by Dandy
Wed Jul 09, 2014 7:53 am
 
Forum: Investing - Theory, News & General
Topic: How many veteran investor have LARGE MAJORITY in three-fund?
Replies: 56
Views: 3785

Re: POLL: How Old is Your Newest Motor Vehicle? -- REVISED

While I used to pride myself on making an aging "fleet" (4 cars at peak) last and thinking of the money I saved I no longer make that the priority. Newer cars are so much safer (and better) than older cars I think the trade off between being frugal and being safe has changed. Now safety (a...
by Dandy
Tue Jul 08, 2014 10:04 am
 
Forum: Personal Finance (Not Investing)
Topic: POLL: How Old is Your Newest Motor Vehicle? -- REVISED
Replies: 51
Views: 2965

Re: Bubble, Bubble, Toil and Trouble

You may not be able to determine when the bubble will burst but there are signs your are in one - sometimes. e.g. when my CD oriented mother in law says she is thinking about investing in a hot stock to make some money for a wedding gift in 6 months, when a house is on the market and they get 3 bids...
by Dandy
Mon Jul 07, 2014 4:54 pm
 
Forum: Investing - Theory, News & General
Topic: Bubble, Bubble, Toil and Trouble
Replies: 24
Views: 3546

Re: Jonathan Clements WSJ: His index fund portfolio

Interesting - no Total bond, emerging market bonds and short term CDs. and Short term Corporate as a core fixed income holding. Isn't is amazing how different well respected investment gurus invest or recommend investments. Bogle - international equities aren't needed. Bernstein international bonds ...
by Dandy
Sun Jul 06, 2014 2:46 pm
 
Forum: Investing - Theory, News & General
Topic: Jonathan Clements WSJ: His index fund portfolio
Replies: 13
Views: 2960

Re: Anyone switch to non-branch banking?

What's the emergency where you would need large amounts of cash, but checks or credit/debit wouldn't work? Hurricane Sandy - power was out for 5 days for us. No gas, no atms, no heat, no internet, no cable. Lucky, the town next to us had some power so we could get warm and charge a meal. Cash was k...
by Dandy
Sun Jul 06, 2014 8:52 am
 
Forum: Personal Finance (Not Investing)
Topic: Anyone switch to non-branch banking?
Replies: 54
Views: 4293

Re: Phantom Expenses and Withdrawal Rates

Retirees need an emergency fund. Just like for those in the accumulation stage the emergency fund should not be part of the portfolio. Retirees that have an emergency fund should calculate their withdrawal rate excluding the emergency fund. That is an ideal approach. What I try to do is save a bit o...
by Dandy
Sun Jul 06, 2014 8:08 am
 
Forum: Investing - Theory, News & General
Topic: Phantom Expenses and Withdrawal Rates
Replies: 12
Views: 870

Re: Some rebalancing questions

In general you rebalance to bring your portfolio back to (or close to) your well thought out plan. The most important allocation is between stocks and fixed income -- but the other categories and allocations are also of concern. If you are in the accumulation stage you can consider changing your con...
by Dandy
Sat Jul 05, 2014 7:56 am
 
Forum: Investing - Help with Personal Investments
Topic: Some rebalancing questions
Replies: 3
Views: 280

Re: AA: Jump in or glide in with Inheritance Cash?

The usual advice is get to your allocation asap because that is what you intend to live with. I have no research to back me up but my approach is to do some lump sum and automate the rest over a relatively short period. A key word is automate. If/when markets dive you don't want to leave the decisio...
by Dandy
Sat Jul 05, 2014 7:49 am
 
Forum: Investing - Help with Personal Investments
Topic: AA: Jump in or glide in with Inheritance Cash?
Replies: 23
Views: 1999

Re: Just retired...any reason to move 401K to IRA?

I believe the 401k has better protection from creditors. Aside from that it seems a move would be based on expense ratios, fund/product choices and service/services offered. As noted the 401k may provide a nice Stable value fund. But not offer brokerage options from ETFs, CDs etc. If you have taxabl...
by Dandy
Fri Jul 04, 2014 10:39 am
 
Forum: Investing - Theory, News & General
Topic: Just retired...any reason to move 401K to IRA?
Replies: 50
Views: 4804
Next

Return to advanced search