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Re: Buying more when markets are down

When the market has been down for 3 or 4 days or has a couple of really bad days I would often invest extra rather than wait for my rebalancing date -- but not to bring my equity allocation above my band. This was all done in tax advantaged accounts.
by Dandy
Wed Oct 01, 2014 5:37 pm
 
Forum: Investing - Theory, News & General
Topic: Buying more when markets are down
Replies: 50
Views: 2607

Re: Asset allocation market timing strategy inspired by John

I always find Mr. Bogle's thoughts interesting but a bit like Fed Reserve communications. I generally agree that if object measures vs feelings that the market is "too" highly valued you should consider reducing equities. I also think retirees should consider this even more. How to put whe...
by Dandy
Wed Oct 01, 2014 5:31 pm
 
Forum: Investing - Theory, News & General
Topic: Asset allocation market timing strategy inspired by John B
Replies: 32
Views: 1622

Re: What to Do next? Life Events + What To Invest?

1. I'd wait on the 529 unless there are great state based tax incentives - See how the situation evolves as far as expenses after the baby arrives. You retirement is more important that college funding. 2. I'd be worried about an ARM mortgage. You might want to see if getting a flat rate mortgage wi...
by Dandy
Wed Oct 01, 2014 4:09 pm
 
Forum: Investing - Help with Personal Investments
Topic: What to Do next? Life Events + What To Invest?
Replies: 8
Views: 832

Re: Just looking for a nudge

Maybe not so much after today! These are the days that make people either jump in or freeze. Until very recently the equity market was at or near historic highs - it has backed off a few percent. Who knows what the next short term move will be. If you sit on the sidelines and the market goes up you ...
by Dandy
Wed Oct 01, 2014 3:44 pm
 
Forum: Investing - Help with Personal Investments
Topic: Just looking for a nudge
Replies: 9
Views: 660

Re: please take a look at my 'gone fishing' portfolio and ra

I like it. Please make sure to get other opinions. Good luck and good fishing!
by Dandy
Wed Oct 01, 2014 11:03 am
 
Forum: Investing - Help with Personal Investments
Topic: please take a look at my 'gone fishing' portfolio and rate
Replies: 37
Views: 2535

Re: please take a look at my 'gone fishing' portfolio and ra

Not bad. A little too much equity for my taste. I might go along with selling REIT and Emerging Mkts and adding some to Total Stock and fixed income - no rush. I don't think you should have 70% equities when you get closer to retirement so think of a gentle glide path to say 4 or 5 years from retire...
by Dandy
Wed Oct 01, 2014 9:52 am
 
Forum: Investing - Help with Personal Investments
Topic: please take a look at my 'gone fishing' portfolio and rate
Replies: 37
Views: 2535

Re: 4% Guaranteed Interest Option in 403(b)?

Makes sense to use this option as part of a diversified fixed income allocation. I would not put 100% in this or almost any investment/savings product.
by Dandy
Tue Sep 30, 2014 9:51 am
 
Forum: Investing - Help with Personal Investments
Topic: 4% Guaranteed Interest Option in 403(b)?
Replies: 4
Views: 557

Re: Disappointed in Vanguard customer service

I managed 2 different mutual fund call centers. It is not an easy job. Mistakes happen and a real test of service is how the response is when they make a mistake. Apologize and correct it quickly gives you some trust that whatever firm you deal with whether it is a mutual fund or Amazon you can rela...
by Dandy
Tue Sep 30, 2014 12:16 am
 
Forum: Investing - Theory, News & General
Topic: Disappointed in Vanguard customer service
Replies: 37
Views: 4032

Re: What is your rebalancing policy?

"Rebalancing only allowed in the last two weeks of December, the first two weeks of January, and the first two weeks of July." Too loosey goosey? What is the purpose of your rebalancing? To control risk? usually that is the main goal. Equities are usually the riskiest part of the allocati...
by Dandy
Mon Sep 29, 2014 11:45 pm
 
Forum: Investing - Help with Personal Investments
Topic: What is your rebalancing policy?
Replies: 63
Views: 5880

Re: POLL: When I gift/will shares to my relatives, I expect

When my daughters were around college age our gifts were targeted to help them fund their IRAs. Once they matured and the investing seed had taken hold the gifts had no stings. I know gifts from their late grandma had/have special meaning but I hope our gifts are used to fill current or future needs...
by Dandy
Mon Sep 29, 2014 8:58 am
 
Forum: Personal Finance (Not Investing)
Topic: POLL: When I gift/will shares to my relatives, I expect ...
Replies: 24
Views: 1533

Re: Chartway offers 2.5% 5-year CD, only 90 day penalty!

Nice rate and great penalty terms. Something to consider. Make sure to read the disclosures,
by Dandy
Mon Sep 29, 2014 8:44 am
 
Forum: Investing - Theory, News & General
Topic: Chartway offers 2.5% 5-year CD [with uncertain terms]
Replies: 12
Views: 2173

Re: R u selling PIMCO bond fund

I wouldn't own it. While it is getting smaller by the day it is gigantic. When the portfolio manager(s) have to deal with such a large portfolio they either become an expensive closet index fund or have to take outsized positions/risks. Add to that its asset drain and I'm out. Truthfully, I was out ...
by Dandy
Mon Sep 29, 2014 8:40 am
 
Forum: Investing - Help with Personal Investments
Topic: R u selling PIMCO bond fund
Replies: 19
Views: 1747

Re: Prudent to tilt away from bonds?

the big risk control factor is your allocation to equities. With 15 years to retirement you should be fine with a good short or intermediate bond fund. I'm not too fussy about the sub allocations to fixed income. Some Intermediate, some short, some tips and if CDs are ok by you they are ok by me. I ...
by Dandy
Sun Sep 28, 2014 5:35 pm
 
Forum: Investing - Help with Personal Investments
Topic: Prudent to tilt away from bonds?
Replies: 4
Views: 515

Re: What's Your Takeaway from 2014 High Valuation

People worry too much about ideological purity. I agree. The basic Boglehead principles are great. e.g. invest in low cost well diversified index funds, Have a written IPS, Stay the Course, simplicity, rebalance and don't try to time the market, live below your means, etc. You need to be careful if...
by Dandy
Sun Sep 28, 2014 10:24 am
 
Forum: Investing - Theory, News & General
Topic: What's Your Takeaway from 2014 High Valuation
Replies: 52
Views: 4057

Re: What's Your Takeaway from 2014 High Valuation

There's no difference between market timing by selling and market timing by not buying. That is mathematically correct. There is a world of difference between an investor who fears the market is too high and sells out in a panic vs an investor who doesn't sell any equities but doesn't buy more. It ...
by Dandy
Sat Sep 27, 2014 11:45 pm
 
Forum: Investing - Theory, News & General
Topic: What's Your Takeaway from 2014 High Valuation
Replies: 52
Views: 4057

Re: What's Your Takeaway from 2014 High Valuation

Had you gotten out of the market after 36 months, you would have missed out 60% of the bull market that ended in 1929. You would have also missed out on 75% of the bull markets that ended in 1961, 1987, and 2000. Who said anything about getting out of the market ? The discussion was adding to equit...
by Dandy
Sat Sep 27, 2014 6:11 pm
 
Forum: Investing - Theory, News & General
Topic: What's Your Takeaway from 2014 High Valuation
Replies: 52
Views: 4057

Re: rebalancing conundrum/paradox/irony

I would argue that this is a bad analogy. Reasonable point - all analogies are imperfect. If you didn't anticipate in your IPS having to buy equities when they are high - you may have to re think your IPS. Do some soul searching before you revise your IPS - you don't want to change it too frequentl...
by Dandy
Sat Sep 27, 2014 12:02 pm
 
Forum: Investing - Theory, News & General
Topic: rebalancing conundrum/paradox/irony
Replies: 82
Views: 4566

Re: How to buy brokered CDs in Vanguard IRA?

I would assume so since CDs are sold by the brokerage unit. In taxable there are slightly better 5 yr CD rates directly with some banks. VG offers better deals than most on 7 and 10 yr CDs and lower than directly with banks below 5 years.
by Dandy
Sat Sep 27, 2014 11:32 am
 
Forum: Investing - Help with Personal Investments
Topic: How to buy brokered CDs in Vanguard IRA?
Replies: 4
Views: 522

Re: What's Your Takeaway from 2014 High Valuation

How do you define 'high valuations'? Smells like market timing to me... I define high as market at or near historic highs and/or when the bull has run for 3 or 4 years in a row. Not feeling it is high or smelling that it is high or because Cramer says it is high. If you want to call that market tim...
by Dandy
Sat Sep 27, 2014 11:29 am
 
Forum: Investing - Theory, News & General
Topic: What's Your Takeaway from 2014 High Valuation
Replies: 52
Views: 4057

Re: What's Your Takeaway from 2014 High Valuation

In general stay the course is a good idea. But - what is your specific situation? and what is your course? I'm 66 and in good shape for fully funding my retirement. Earning power is near zero. Hoping to collect SS in 4 years. My position is vastly different from 15 years ago when I was in the accumu...
by Dandy
Sat Sep 27, 2014 9:30 am
 
Forum: Investing - Theory, News & General
Topic: What's Your Takeaway from 2014 High Valuation
Replies: 52
Views: 4057

Re: rebalancing conundrum/paradox/irony

That is what happens when a well thought out IPS meets the reality down the road. If the IPS wasn't well thought out you need a new IPS. Buying stocks when the market is at or near historic highs is counter intuitive. It is logical to trim stocks when they are "high" but is it letting your...
by Dandy
Sat Sep 27, 2014 9:05 am
 
Forum: Investing - Theory, News & General
Topic: rebalancing conundrum/paradox/irony
Replies: 82
Views: 4566

Re: What's wrong with leverage?

There are many good answers to review. My view is leverage is great when it works and horrible when it doesn't. It seems to be best used by very sophisticated investors in a limited way. There are too many people who consider themselves sophisticated investors and those investors tend to over use le...
by Dandy
Sat Sep 27, 2014 8:01 am
 
Forum: Investing - Theory, News & General
Topic: What's wrong with leverage?
Replies: 15
Views: 1093

Re: How to buy brokered CDs in Vanguard IRA?

Assuming you have a vg brokerage account 1. sign on 2. There is a gray bar near the top and the last choice is "buy & sell" 3. Click on buy and sell and to the right is a list of Brokerage Products 4. Click on trade bonds or CDs 5. It will then display the different accts you own e.g. ...
by Dandy
Sat Sep 27, 2014 7:56 am
 
Forum: Investing - Help with Personal Investments
Topic: How to buy brokered CDs in Vanguard IRA?
Replies: 4
Views: 522

Re: Why not 100% CD's?

I'm a fan of using a CD ladder as a decent part of my retiree fixed income allocation. I would not advocate 100% or even near 100% allocation to CDs. But 20 to 25% seems good to me as a early retiree with about a 60% fixed income allocation. But I also have allocations to TIPS and short and intermed...
by Dandy
Fri Sep 26, 2014 4:53 pm
 
Forum: Investing - Help with Personal Investments
Topic: Why not 100% CD's?
Replies: 73
Views: 4965

Re: My IPS and rebalancing

I tend to use my rebalancing limits as a guide to a goal rather than an immediate signal to shift large sums of money. (I hate shifting large sums of money). I also put much more emphasis on the equity vs fixed income allocation since that is where the major risk exposure is. My reasoning is that wh...
by Dandy
Fri Sep 26, 2014 10:06 am
 
Forum: Investing - Help with Personal Investments
Topic: My IPS and rebalancing
Replies: 12
Views: 1067

Re: Young Investor (in High School) with $15k to invest

My advice for a young and inexperienced investor who is smart enough to think about investing and having an emergency fund: 1. Read several books on this forum's reading list 2. At the onset be more conservative than you think you should - since you don't know your risk tolerance. 3. Define what you...
by Dandy
Fri Sep 26, 2014 9:24 am
 
Forum: Investing - Help with Personal Investments
Topic: Young Investor (in High School) with $15k to invest
Replies: 13
Views: 1259

Re: Unexpected Emergency

I would try to reduce the 401k to get the most company max (assuming they offer a match). A lot depends on the loan rate and how much loan you need.
by Dandy
Thu Sep 25, 2014 4:34 pm
 
Forum: Investing - Help with Personal Investments
Topic: Unexpected Emergency
Replies: 33
Views: 3220

Re: New Tony Robbins Book on Financial Freedom

This Tony Robbins? from a google of his name http://www.nytimes.com/2012/08/05/opinion/sunday/the-positive-power-of-negative-thinking.html?_r=0 The New York Times‎ - Aug 2012 ... Calif., 21 people were treated for burns after walking barefoot over hot coals as part of an event called Unleash the Pow...
by Dandy
Thu Sep 25, 2014 9:48 am
 
Forum: Investing - Theory, News & General
Topic: New Tony Robbins Book on Financial Freedom
Replies: 8
Views: 1302

Re: Stubbornly Non-Boglehead Husband. What To Do?

He is brilliant, works in the financial business, makes a lot of money and loves to research/buy stocks almost like a hobby. Not much hope for change. I'm sure his approach is probably reinforced by his associates at work. Such investing is a gambling high. Guard your 50% Usually only a life changin...
by Dandy
Thu Sep 25, 2014 9:34 am
 
Forum: Investing - Theory, News & General
Topic: Stubbornly Non-Boglehead Husband. What To Do?
Replies: 122
Views: 7545

Re: It's pretty freaky watching your stocks go up & down all

That is why I suggest new investors start off more conservative than most others. You can understand things intellectually but it often feels a lot different when you actually watch your money shrink. And, these last few days have been relatively mild. Try watching the S&P drop several hundred p...
by Dandy
Tue Sep 23, 2014 9:45 pm
 
Forum: Investing - Theory, News & General
Topic: It's pretty freaky watching your stocks go up & down all day
Replies: 60
Views: 5426

Re: Could one theoretically be 100% stocks your whole life?

Disciple of John Neff Wow I haven't heard that name in awhile. Great large cap value investor. I guess if you are going to go 100% equities US large cap value isn't a bad place to be. Since the 1980's I think we have had a generally favorable bull market most of the time. With a few notable excepti...
by Dandy
Tue Sep 23, 2014 10:08 am
 
Forum: Investing - Theory, News & General
Topic: Could one theoretically be 100% stocks your whole life?
Replies: 43
Views: 2751

Re: Could one theoretically be 100% stocks your whole life?

Warren Buffet and his wife have not won the game - they own the league. They are literally out of our league. If the stock market lost 90% of it's value his wife would still have a comfortable retirement. There seems to be some fascination about 100% equity allocation. Yes, equities have returned mo...
by Dandy
Tue Sep 23, 2014 8:46 am
 
Forum: Investing - Theory, News & General
Topic: Could one theoretically be 100% stocks your whole life?
Replies: 43
Views: 2751

Re: Help with company pension lump-sum offer

I would opt for the pension at 62 as a general "rule". That assumes your health/life expectancy etc are not an issue and the mega company is not in a risky financial position. Guaranteed payments for the rest of your life is a nice thing to have. You might gain more by investing the lump s...
by Dandy
Tue Sep 23, 2014 8:21 am
 
Forum: Personal Finance (Not Investing)
Topic: Help with company pension lump-sum offer
Replies: 7
Views: 847

Re: Leeraar's Three-Holding Portfolio

In general, simplicity is a good thing. The trade off is that a simple 3 fund portfolio or a portfolio of 2 balanced funds may not have all the products or the allocation to them that you desire or have some you don't desire . e.g. the 3 fund portfolio doesn't include TIPS, most balance funds aren't...
by Dandy
Mon Sep 22, 2014 4:48 pm
 
Forum: Investing - Theory, News & General
Topic: Leeraar's Three-Holding Portfolio
Replies: 27
Views: 2132

Re: rebalancing at age 55

I'm not in the individual stock game. You might want to compare your sectors to the S&P 500 to see where you are over or under weight the market. Trying to re balance such a large number and small % holdings seems to be a nightmare and may create a lot of taxable transactions. My advice is to gr...
by Dandy
Mon Sep 22, 2014 4:05 pm
 
Forum: Investing - Help with Personal Investments
Topic: rebalancing at age 55
Replies: 7
Views: 777

Re: Left tail portfolio - 70% bonds. Good idea?

I am in early retirement and have about 57% fixed income moving to 60% in a few years. I decided to temper volatility on the fixed income side by allocating 1/3 to intermediate bond funds (incl TIPS), 1/3 in short term bond funds and 1/3 in "safe" e.g. CDs, other FDIC products, legacy HH a...
by Dandy
Sun Sep 21, 2014 11:06 am
 
Forum: Investing - Theory, News & General
Topic: Left tail portfolio - 70% bonds. Good idea?
Replies: 38
Views: 3181

Re: So what the benckmark SWR for a 25 year retirement?

Don't think of safe withdrawal rate - think reasonable starting point. So much can happen over 25 to 30 years you really do have to keep an eye on your health, expenses and portfolio in most cases as I believe you know.
by Dandy
Sun Sep 21, 2014 10:21 am
 
Forum: Investing - Help with Personal Investments
Topic: So what the benckmark SWR for a 25 year retirement?
Replies: 14
Views: 958

Re: $500,000 to invest long-term at age 30 - Where? How?

When the dividends are arranged to go to Prime, when do you then reinvest them Since Prime pays almost nothing I would not let much money sit there for long. Either have divs and cap gains reinvested or use Prime $ to rebalance when the money builds up. In taxable accounts it is better to use contr...
by Dandy
Sun Sep 21, 2014 9:34 am
 
Forum: Investing - Help with Personal Investments
Topic: $500,000 to invest long-term at age 30 - Where? How?
Replies: 29
Views: 5014

Re: $500,000 to invest long-term at age 30 - Where? How?

I am biased toward Vanguard. you can invest on your own, with very low costs. Assuming the $500 k is in taxable accounts I also like the Total Stock Market 50%, Total International 25%, and Intermediate Tax Free at 25%. Most studies show if you have a long time horizon to just invest the whole lump ...
by Dandy
Sun Sep 21, 2014 9:16 am
 
Forum: Investing - Help with Personal Investments
Topic: $500,000 to invest long-term at age 30 - Where? How?
Replies: 29
Views: 5014

Re: Trusting our advisor?

DFA funds have a decent reputation so that is a good sign. If you are afraid of too much international I would speak to your advisor. That risk should be discussed before investing. On the surface the allocation makes some sense given the size of the US markets vs the rest of the globe. Not many ret...
by Dandy
Sun Sep 21, 2014 8:44 am
 
Forum: Investing - Help with Personal Investments
Topic: Trusting our advisor?
Replies: 25
Views: 1884

Re: Total bond index or 5 yr CD?

Why would you not get the CD? Because there is a chance that the bond fund will have a better outcome, i.e. more money, after 5 years than the CD. But it could also have a worse outcome. That's the risk. True. I don't think there will be much difference whether a person buys all Total bond, all 5yr...
by Dandy
Sun Sep 21, 2014 8:00 am
 
Forum: Investing - Help with Personal Investments
Topic: Total bond index or 5 yr CD?
Replies: 36
Views: 2781

Re: Total bond index or 5 yr CD?

I can recall a similar situation decades ago when interest rates soared. My in laws had whole life policies that guaranteed loans at 3 or 5% and CDs were paying 15%. There was no risk to the money and you could get a double digit better return. If interest rates dropped you could repay the loan. Soo...
by Dandy
Sun Sep 21, 2014 6:27 am
 
Forum: Investing - Help with Personal Investments
Topic: Total bond index or 5 yr CD?
Replies: 36
Views: 2781

Re: I need "Ultra High Net Worth" investing advice please

Congrats. We don't often think of the stress and issues of having to wisely invest such a large sum. You do need to consult several financial planners and other professionals e.g. tax/estate lawyers. Your assets and needs are above my expertise I would add that you obviously need to take zero risk. ...
by Dandy
Sat Sep 20, 2014 7:07 pm
 
Forum: Investing - Help with Personal Investments
Topic: I need "Ultra High Net Worth" investing advice please
Replies: 225
Views: 18802

Re: Total bond index or 5 yr CD?

Serious investors sometimes have a problem with CDs. Historically, they have not been a great deal - though they did have some good years when interest rates were much higher. Most investment professionals and authors who advise on asset allocation usually don't think of CDs, Ibonds, EE bonds and ev...
by Dandy
Sat Sep 20, 2014 6:47 pm
 
Forum: Investing - Help with Personal Investments
Topic: Total bond index or 5 yr CD?
Replies: 36
Views: 2781

Re: Help! Are we making a huge mistake?

If having enough money to enjoy life and retirement isn't the issue then go with what will make you happy. At some point additional money can get to be too much of a focus. enjoying life and relationships can be more satisfying. If working for 3 years will get you to have the wealth to enjoy the res...
by Dandy
Sat Sep 20, 2014 11:10 am
 
Forum: Personal Finance (Not Investing)
Topic: Help! Are we making a huge mistake?
Replies: 39
Views: 5094

Re: When did you feel "Out of the Woods"?

Early stages you are mostly in the woods. House, children then their education keep you from getting into the clearing for the most part. It is a long hike to the clearing for most of us. It seems just when you are about to break through a bit you need to get a new roof, car or something else. Thing...
by Dandy
Sat Sep 20, 2014 8:16 am
 
Forum: Personal Finance (Not Investing)
Topic: When did you feel "Out of the Woods"?
Replies: 42
Views: 5333

Re: Revising AA, significant difference

Age in bonds is a place to start the thinking process. Many believe that you should reduce risk as you age -- even more believe you should reduce risk as you near or are in retirement. But not everyone. Those that plan to retire early have more years to make their portfolio last. That might make hav...
by Dandy
Fri Sep 19, 2014 10:07 am
 
Forum: Investing - Help with Personal Investments
Topic: Revising AA, significant difference
Replies: 11
Views: 890

Re: A safe full of cash

I could see a few thousand in cash in case of a prolonged power failure. Hurricane Sandy put us out of power for 4 days (a minor problem compared to many). We were lucky that some restaurants in the next town had power so we could use our credit cards. Gas stations could pump gas so cash wouldn't he...
by Dandy
Fri Sep 19, 2014 9:40 am
 
Forum: Investing - Help with Personal Investments
Topic: A safe full of cash
Replies: 22
Views: 3063

Re: How often do YOU rebalance and when?

As part of your intermediate term bonds, do you invest in the Vanguard TIPS fund?

Abuss -Yes - TIPS fund is the highest dollar amount. Closely followed by Total Bond. Also, have allocations to Investment Grade Corporate and Intermediate Muni.
by Dandy
Thu Sep 18, 2014 5:08 pm
 
Forum: Investing - Help with Personal Investments
Topic: How often do YOU rebalance and when?
Replies: 39
Views: 1980

Re: Why Invest in Bonds in your early 30s?

I'm in my mid 60's and never allocated more than 55% to equities. Lived below our means, saved in the mid double digits or more and retired in 2008 with more than enough to last through retirement. That was a pretty bad time to retire. I started off with heavy investments in my Stable Value Fund tha...
by Dandy
Thu Sep 18, 2014 4:47 pm
 
Forum: Investing - Help with Personal Investments
Topic: Why Invest in Bonds in your early 30s?
Replies: 43
Views: 3571
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