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Re: Time + Savings Rate > Asset Allocation

Generally agree. Start early and save as much as you can. Compounding is a beautiful thing! Not a fan of set it and forget it for decades etc. To me that is the opposite problem of constant tinkering. Have a plan and make it part of yiour plan to every X years take stock of your situation to make su...
by Dandy
Sun Sep 14, 2014 9:08 am
 
Forum: Investing - Theory, News & General
Topic: Time + Savings Rate > Asset Allocation
Replies: 16
Views: 1234

Re: Bond Allocation

I tend to agree that TIPS allocation is too high and having two intermediate bond funds is not needed. Why not consider 1/3 TIPS, !/3 total bond and 1/3 "safe" (CDs/CD ladder, short term bond funds, Stable Value funds etc.). That gives you some inflation protection, some higher interest an...
by Dandy
Sun Sep 14, 2014 8:33 am
 
Forum: Investing - Help with Personal Investments
Topic: Bond Allocation
Replies: 10
Views: 1591

Re: Should I break my CD at Ally and get a new one's ?

I don't think the difference in interest rates now are really worth the effort/expense. There probably will be higher rates in the near future (ok we have heard that for years) but I'm guessing the recovering economy and Fed likely to act that 2015 is likely to be a better rate environment for saver...
by Dandy
Sun Sep 14, 2014 8:13 am
 
Forum: Investing - Help with Personal Investments
Topic: Should I break my CD at Ally and get a new one's ?
Replies: 14
Views: 1707

Re: The dangerous practice of rebalancing...

Once your portfolio approaches the amount you need to fund the rest of your retirement rebalancing "risk" becomes a bit or a lot different. Knee jerk full rebalancing is putting your secure retirement at much more risk. Sure in most cases the equity market will rebound in a relatively shor...
by Dandy
Sat Sep 13, 2014 4:57 pm
 
Forum: Investing - Theory, News & General
Topic: The dangerous practice of rebalancing...
Replies: 135
Views: 6852

Re: The dangerous practice of rebalancing...

Basically the author overstates the issue. If you have enough to secure your retirement funding and some extra it makes sense to do that with safe or almost safe investments/savings. That is basically what WM Bernstein recommended. If you do this calculation first you can then decide how to allocate...
by Dandy
Sat Sep 13, 2014 12:31 pm
 
Forum: Investing - Theory, News & General
Topic: The dangerous practice of rebalancing...
Replies: 135
Views: 6852

Re: Buying CDs

CDs are not quite like any other investment/savings product. They don't seem to react to a national market and are usually ignored by large investors, investment companies. There are lots of good deals and bad deals. You can find vast differences in rates for essentially the same term and guarantee....
by Dandy
Sat Sep 13, 2014 11:38 am
 
Forum: Investing - Help with Personal Investments
Topic: Buying CDs
Replies: 24
Views: 2377

Re: Do i need to invest in bonds?

as noted the equity index does not appear to be well diversified. Also, think fixed income vs bonds. Almost everyone in every situation should have money allocated to fixed income. Age in bonds might be a good place to start or use another guideline of having 20 -25% in fixed income. I would suggest...
by Dandy
Sat Sep 13, 2014 10:59 am
 
Forum: Investing - Help with Personal Investments
Topic: Do i need to invest in bonds?
Replies: 11
Views: 1040

Re: "A Boring Investor's Gambling Portfolio" -Allan Roth

I'm not much of a gambler but I like how Mr. Roth has set up his plan. He "wins" if his gamble loses because he gets to take some relief to offset other income/gains, he wins if the gamble pays off because he can take a charitable deduction and the charity wins. Nice framework - get the th...
by Dandy
Sat Sep 13, 2014 10:53 am
 
Forum: Investing - Help with Personal Investments
Topic: "A Boring Investor's Gambling Portfolio" -Allan Roth
Replies: 8
Views: 1476

Re: IRA to Roth conversion after retirement ?

I wish I had converted some earlier in retirement when income was a bit less. I am currently withdrawing less than 2% of my total portfolio which is about 2/3 in TIRA. It was quite surprising how the projected RMD amount grows with even modest estimates of TIRA portfolio growth. Taking SS at age 70 ...
by Dandy
Sat Sep 13, 2014 10:49 am
 
Forum: Investing - Help with Personal Investments
Topic: IRA to Roth conversion after retirement ?
Replies: 14
Views: 1268

Re: Fidelity: Successful investors forget they have an acco

forgetting means the investors didn't panic during bad times (or re balance). Sounds reasonable since most tampering with your investments tend to be closet market timing or just basic fear/greed. Of course if someone hacked into your account and took some of your assets you would have liked to have...
by Dandy
Thu Sep 11, 2014 8:57 am
 
Forum: Investing - Theory, News & General
Topic: Fidelity: Successful investors forget they have an account
Replies: 25
Views: 3664

Re: bogleheads - can I scale it back?

If you can afford to scale back then go for it. High stress, long hours do damage to health and relationships. No way to live if you don't have to. After a period of recharging you might be ready for a bit more work -- or not.
by Dandy
Thu Sep 11, 2014 8:51 am
 
Forum: Investing - Theory, News & General
Topic: bogleheads - can I scale it back?
Replies: 34
Views: 3911

Re: Should anyone invest in short-term bonds at this point?

Short term bonds/funds have pros and cons just like other fixed income products. The shorter duration of short term bond funds offer less interest rate risk than longer duration bond funds and they are more liquid than a CD (due to the penalty). At these low interest rates they don't offer much shor...
by Dandy
Thu Sep 11, 2014 7:50 am
 
Forum: Investing - Theory, News & General
Topic: Should anyone invest in short-term bonds at this point?
Replies: 46
Views: 3644

Re: Do I need bonds?

Think fixed income not just bonds. Yes you need some fixed income - bonds, CDs, Savings accounts, etc. They provide stability and liquidity - especially in bad times when stocks are down and real estate becomes difficult to sell. Each fixed income product has pros and cons. Some avoid taxes, some ke...
by Dandy
Wed Sep 03, 2014 6:20 am
 
Forum: Investing - Help with Personal Investments
Topic: Do I need bonds?
Replies: 43
Views: 2727

Re: Age in Stocks: Should you have a Reverse Glidepath?

Of course a lot depends on the sequence of future equity returns, your financial position at the start of retirement, your retirement drawdown needs, your medical expense/insurance coverage etc. Over the long run equities should return more than a balanced portfolio. That fact tends to creep into &q...
by Dandy
Mon Sep 01, 2014 3:11 pm
 
Forum: Investing - Theory, News & General
Topic: Age in Stocks: Should you have a Reverse Glidepath?
Replies: 21
Views: 1342

Re: struggling to understand "bond crash"

crash is a relative term much more applicable to equities than most bonds. When interest rates rise people want the higher yielding Treasuries not the ones your fund holds. So the market value of the lower yielding Treasuries drops a bit. Fund have to reflect the lower value in their Net Asset Value...
by Dandy
Mon Sep 01, 2014 2:47 pm
 
Forum: Investing - Theory, News & General
Topic: struggling to understand "bond crash"
Replies: 13
Views: 2003

Re: Poor Janus, a look at this once high flying fund family

In my dumb old days I had a bit on money in Janus Venture (small cap). Luckily I got out way before they had management fall out and other problems and saw the index fund light. :happy
by Dandy
Mon Sep 01, 2014 7:53 am
 
Forum: Investing - Theory, News & General
Topic: Poor Janus, a look at this once high flying fund family
Replies: 72
Views: 7256

Re: Thoughts on California Municipal Bond Funds

I would not put all my muni eggs in my state muni basket. Most times states muddle through but California has its challenges, drought being the latest and a .25 extra yield doesn't seem worth it to me. Having some in same state fund is ok but I'd be wary of 100% if the assets involved are large.
by Dandy
Mon Sep 01, 2014 7:49 am
 
Forum: Investing - Theory, News & General
Topic: Thoughts on California Municipal Bond Funds
Replies: 32
Views: 2541

Re: A Primer on John Templeton

I assume he was a pioneer and savvy investor. His funds were also expensive to own so he forgot to mention "charge a lot to manage other people's money" . The Templeton Foreign Fund Class A has a maximum initial sales charge or 5.75%, a 1.19% expense ratio and .25 12b-1 fee. Class C of the...
by Dandy
Mon Sep 01, 2014 7:45 am
 
Forum: Investing - Theory, News & General
Topic: A Primer on John Templeton
Replies: 28
Views: 2121

Re: The Power of Zero: [Book and tax planning for retirement

As pointed out tax laws change. It makes sense to have some tax free (Roth, muni), tax deferred (TIRA, I bonds) and taxable. Basing your whole investment strategy on future taxes and tax laws doesn't appear wise. There is nothing to prevent the taxation of Roth distributions, muni bond interest or a...
by Dandy
Mon Sep 01, 2014 7:23 am
 
Forum: Investing - Theory, News & General
Topic: The Power of Zero: [Book and tax planning for retirement]
Replies: 52
Views: 5193

Re: bonds in taxable. which fund?

I have some in intermediate muni and some in LTD term Tax exempt. Both are good funds. I would hesitate to go for much longer duration.
by Dandy
Sun Aug 31, 2014 12:17 pm
 
Forum: Investing - Help with Personal Investments
Topic: bonds in taxable. which fund?
Replies: 6
Views: 567

Re: Should I fix a "totaled" car

I vote no. Forget your love of the car to me it is about financial and safety concerns. Fixing up a car with 130,000 (even if loved) sounds like a bad investment. Put the money toward a newer, safer car that will earn your love for many more years to come.
by Dandy
Sat Aug 30, 2014 9:33 am
 
Forum: Personal Consumer Issues
Topic: Should I fix a "totaled" car
Replies: 37
Views: 2604

Re: Debating whether to keep current vehicle or purchase ano

My views on cars has changed - I used to try to drive them into the ground and hold them for at least 10 years. I think I focused too much on saving money vs safety and comfort. I do own a 2004 Civic that my wife drives around town so I haven't changed completely. But, I recently bought a 2014 Subar...
by Dandy
Sat Aug 30, 2014 9:27 am
 
Forum: Personal Consumer Issues
Topic: Debating whether to keep current vehicle or purchase another
Replies: 44
Views: 2375

Re: Resetting Equity Target -a.k.a Portfolio Allocation

Nice job of having a great nest egg and zero debt. There are a lot of things you need to consider before you decide on what risk you have to take - if any. 1. You need to estimate your monthly/yearly retirement expenses 2. What will be your retirement income when you retire and any increases e.g. fr...
by Dandy
Sat Aug 30, 2014 9:05 am
 
Forum: Investing - Help with Personal Investments
Topic: Resetting Equity Target -a.k.a Portfolio Allocation
Replies: 19
Views: 1182

Re: [Sell off individual stocks?] How many own zero/few stoc

owned very few individual stocks in the past none now. I was "fortunate" to be able to sell positions during the 2008-9 crash to limit taxable gains. I would not sell large cap gain stocks to go to total stock market under most conditions. I would just invest in proper index funds going fo...
by Dandy
Sat Aug 30, 2014 8:34 am
 
Forum: Investing - Help with Personal Investments
Topic: [Sell off individual stocks?] How many own zero/few stocks?
Replies: 68
Views: 2731

Re: Questions: Target 2035/Three fund portfolio

I like the 3 fund portfolio but am not slavish devotee. I believe the VG Target date funds, especially the far dated ones, are too aggressive. I also believe that they were introduced after Mr. Bogle was not longer active. In any event, they were introduced with a less aggressive allocation and then...
by Dandy
Thu Aug 28, 2014 8:02 am
 
Forum: Investing - Help with Personal Investments
Topic: Questions: Target 2035/Three fund portfolio
Replies: 8
Views: 623

Re: AA of 60/40 for your Lifetime?

There is no set it and forget it allocation that would apply to most. Need and ability to take risk vary widely among people and many times for each individual. A Target Date fund chosen at age 25 may not be right when that person reaches age 55. A life strategy fund at 60/40 might be needlessly agg...
by Dandy
Wed Aug 27, 2014 11:39 am
 
Forum: Investing - Help with Personal Investments
Topic: AA of 60/40 for your Lifetime?
Replies: 27
Views: 2339

Re: International allocation

You have to be careful about percentages - is it the percent of the portfolio or the percent of your equities. I think the percent of portfolio better shows the amount of risk/exposure you are taking. I am in early retirement and have 42% equities. 11% of my portfolio is in international equities. T...
by Dandy
Wed Aug 27, 2014 8:38 am
 
Forum: Investing - Theory, News & General
Topic: International allocation
Replies: 73
Views: 4232

Re: Really dumb question from a newbie. passive investing

You have the basic point. As noted rebalancing is probably a given as you don't want to have your portfolio allocation drift too far. You should also decide when/if to moderate your level of risk as you age or life circumstances significantly change. For tax purposes you want to locate fixed income ...
by Dandy
Wed Aug 27, 2014 8:25 am
 
Forum: Investing - Theory, News & General
Topic: Really dumb question from a newbie. passive investing
Replies: 6
Views: 786

Re: Changing AA from 90/10 to 80/20

I tend to be a more moderate risk taker than most. 90 and 80% are both aggressive. If you started your investing in 2013 you have had the benefit of a strong equity market. That can do a lot to make people comfortable with risk. I would suggest that 80% might be a better equity allocation - many &qu...
by Dandy
Wed Aug 27, 2014 8:06 am
 
Forum: Investing - Help with Personal Investments
Topic: Changing AA from 90/10 to 80/20
Replies: 6
Views: 985

Re: What 5 stocks can I own forever?

So when Warren and Charlie retire or die there is no unusual risk in BH stock? I know they have a decentralized management approach but I believe they added significant value not to leave a large hole. Anyhow, it is a bit of a risk that instead of being an investment model they will just be a conglo...
by Dandy
Tue Aug 26, 2014 10:39 am
 
Forum: Investing - Help with Personal Investments
Topic: What 5 stocks can I own forever?
Replies: 58
Views: 4530

Re: strategy to get brokerage bonuses

It is a bit like the free dinner offered for attending the retirement presentation. A certain percentage that go for just the free dinner end up paying a heavy price. So, anytime there is an attractive bonus you really need to not get ensnared by fine print gotchas or being lured into products or se...
by Dandy
Tue Aug 26, 2014 7:35 am
 
Forum: Personal Finance (Not Investing)
Topic: strategy to get brokerage bonuses
Replies: 54
Views: 3660

Re: Telling my friends I paid off my house was a mistake.

Living a bit below your means and limiting or reducing debt generally makes people feel you are not as successful as you really are. After all you may drive an older car, avoided re doing the kitchen and don't have the latest home entertainment toys. On the other hand those who a spenders often look...
by Dandy
Tue Aug 26, 2014 7:29 am
 
Forum: Personal Finance (Not Investing)
Topic: Telling my friends I paid off my house was a mistake.
Replies: 73
Views: 10291

Re: Juice up your cash returns (!) [What do you consider cas

These are the types of investments that are created, packaged and or touted by financial firms to try to tap into the yearn for a better return on "safe" investments. I've seen this show before and it usually ended badly. People are afraid of bonds, think stocks are too high and that norma...
by Dandy
Tue Aug 26, 2014 7:11 am
 
Forum: Investing - Theory, News & General
Topic: Juice up your cash returns (!) [What do you consider cash?]
Replies: 11
Views: 2199

Re: What 5 stocks can I own forever?

Really there are some great companies but with the pace of change and global competition I doubt you could pick many stocks that are buy and hold forever (or even for 3 or 4 decades). The good old days of blue chips seem far away.
by Dandy
Tue Aug 26, 2014 6:56 am
 
Forum: Investing - Help with Personal Investments
Topic: What 5 stocks can I own forever?
Replies: 58
Views: 4530

Re: 100% stock AA-> At what age to add bonds?

age is bonds is a pretty good rule of thumb or in other words a good starting point. If you have the risk tolerance or need to be more aggressive fine. If you don't have a need to take more risk or are unsure of your risk tolerance then age in bonds isn't a bad starting point. At 22 that would mean ...
by Dandy
Mon Aug 25, 2014 4:01 pm
 
Forum: Investing - Theory, News & General
Topic: 100% stock AA-> At what age to add bonds?
Replies: 58
Views: 3739

Re: 100% stock AA-> At what age to add bonds?

Age in bonds is still a pretty good starting point . We should all ask ourselves if we vary from this rule of thumb by much - why. Should have a good reason. I'm not sure having a strong stomach is good enough reason. I'd say once you reach 30 or so this decision becomes more critical. Earlier than ...
by Dandy
Mon Aug 25, 2014 7:04 am
 
Forum: Investing - Theory, News & General
Topic: 100% stock AA-> At what age to add bonds?
Replies: 58
Views: 3739

Re: Backyard Shed

I would go for a slightly bigger shed than you think you need. Ist shed was destroyed by a tree so I made the replacement the next size and it was much better. Also, I sort of divided my 1st shed and regretted it. It made two smaller "rooms" and I found that flexibility of space was more i...
by Dandy
Sun Aug 24, 2014 8:47 am
 
Forum: Personal Consumer Issues
Topic: Backyard Shed
Replies: 21
Views: 1473

Re: Saving for a car

I like that you are saving ahead of time. Investing in an intermediate bond fund is ok but you have to take some risk, especially with rates so low, that instead of gaining money you will be subject to having a loss. That may delay your plans. Most times short term savings are better off by just ban...
by Dandy
Sun Aug 24, 2014 8:27 am
 
Forum: Investing - Help with Personal Investments
Topic: Saving for a car
Replies: 20
Views: 1635

Re: taxable accounts

You have not identified the goal of this money. Saving for a house?, long term supplement to retirement? I'll assume it is a longer term goal and you are above the 15% tax bracket. You can use the three fund portfolio with VG intermediate Tax Free fund replacing the Total Bond fund. So Total Stock, ...
by Dandy
Sun Aug 24, 2014 8:15 am
 
Forum: Investing - Help with Personal Investments
Topic: taxable accounts
Replies: 4
Views: 737

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

If you have children you might want to visit a good lawyer/estate planner to discuss options like trusts and a good tax lawyer to avoid unnecessary taxes. It may seem silly but what are your goals? Do you want to invest in another business, become a land baron, run for office, help a special charity...
by Dandy
Sun Aug 24, 2014 8:07 am
 
Forum: Investing - Help with Personal Investments
Topic: I need "Ultra High Net Worth" investing advice please
Replies: 215
Views: 15819

Re: Defining "Stay the Course"

Significant life events should warrant a review of your investment approach. Your move was based on a significant event not a prediction of the market. Also, moving 4% of your portfolio from a higher risk bond fund to an intermediate risk bond fund is relatively minor in the scheme of things. When I...
by Dandy
Sat Aug 23, 2014 8:19 am
 
Forum: Investing - Theory, News & General
Topic: Defining "Stay the Course"
Replies: 41
Views: 3679

Re: How to weather market downturn with a high chance of lay

You set your portfolio allocation and then if a life changing event happens or is very likely - like a lay off then you need to adjust your approach. I was in a high probability of layoff in 2008. I kept a higher cash position/eliminated debt. Banked bonus, stopped buying company stock, cut back a b...
by Dandy
Sat Aug 23, 2014 7:35 am
 
Forum: Investing - Theory, News & General
Topic: How to weather market downturn with a high chance of layoff
Replies: 42
Views: 3264

Re: Bad(?) advice given about Target Date Retirement funds

I believe that comment was made relating to a very, very hands off investing "friend" and the risk in that one case was that the hands off friend would not have a glide path as he aged. Of course any suggestion is only as good as the detailed information supplied. If the only choices were ...
by Dandy
Thu Aug 21, 2014 4:47 pm
 
Forum: Investing - Theory, News & General
Topic: Bad(?) advice given about Target Date Retirement funds
Replies: 103
Views: 6439

Re: Do we plunder our retirement to pay off student debt?

any reasonable approach to pay off the education debt is probably good. Since the interest rates are so close I would opt for paying off the smaller debt thus freeing up extra monthly income immediately and then pay down the larger loan with the balance of the lump sum and extra monthly income. I do...
by Dandy
Thu Aug 21, 2014 4:12 pm
 
Forum: Investing - Help with Personal Investments
Topic: Do we plunder our retirement to pay off student debt?
Replies: 30
Views: 2648

Re: Which Vanguard BOND Fund ?

as pointed out corporate bonds/funds have higher risk so they should pay a higher return. So, I think you are chasing yield because your thinking return % rather than risk. If you were thinking I need to take a bit more risk on the fixed income side - hey what about the Corporate bond fund - then yo...
by Dandy
Thu Aug 21, 2014 4:03 pm
 
Forum: Investing - Help with Personal Investments
Topic: Which Vanguard bond Fund ?
Replies: 36
Views: 3188

Re: To be truly rich, take stock of your life before investi

For me it was always about securing our finances then maintaining/hopefully gradually improving our standard of living. By securing finances mean able to weather things like jobs losses (had 2), serious costly illnesses (had 1), raising and educating children (had 2) and funding a long retirement wi...
by Dandy
Thu Aug 21, 2014 9:00 am
 
Forum: Investing - Theory, News & General
Topic: To be truly rich, take stock of your life before investing
Replies: 30
Views: 4522

Re: Convincing fears on investing for now?

Almost all of us have concerns but many have learned to basically ignore them because we have had the same concerns in the past and the market does what it does. It goes up and down and it is impossible to predict what it will do next. These fears or gut feelings are often fed by the media. That bei...
by Dandy
Wed Aug 20, 2014 8:45 am
 
Forum: Investing - Help with Personal Investments
Topic: Convincing fears on investing for now?
Replies: 33
Views: 3347

Re: Should we switch our TIPS fund?

I don't believe the Short term TIPS fund has a purchase fee. I believe it used to. I went on the VG site and couldn't find that fee. I have a decent allocation to the TIPS fund and smaller allocation to Short Term TIPs. No deep thought just a bit of duration diversity. If you are concerned about ass...
by Dandy
Mon Aug 18, 2014 4:33 pm
 
Forum: Investing - Help with Personal Investments
Topic: Should we switch our TIPS fund?
Replies: 49
Views: 5429

Re: Rebalance + stay the course ... or dial it down on stock

I feel 90% is too high for almost anyone. Why do you need to be so aggressive? If the thought of another major downturn has you worried maybe it is time to reduce the risk. Most times you should only take the risk you need to.
by Dandy
Mon Aug 18, 2014 5:45 am
 
Forum: Investing - Help with Personal Investments
Topic: Rebalance + stay the course ... or dial it down on stocks
Replies: 10
Views: 1924

Re: Berkshire Hathaway - Warren Buffett - Anyone own the sto

No - not into individual stocks. Really like Buffet but wonder how well the stock will do when he and Charlie are no longer calling the shots. But, even if there were young guns I'll stick with index funds.
by Dandy
Sun Aug 17, 2014 10:59 am
 
Forum: Investing - Theory, News & General
Topic: Berkshire Hathaway - Warren Buffett - Anyone own the stock?
Replies: 110
Views: 9576
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