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Re: Porter Stansberry advising going to 100% cash - Help!

In general you should have an allocation that can withstand a crash. As you get older and have fewer earning years and hopefully a larger portfolio you need to keep an eye on you risk and make sure you have the same risk tolerance. If you are in retirement you may wish to determine how many years wo...
by Dandy
Sat Apr 18, 2015 7:12 am
 
Forum: Investing - Theory, News & General
Topic: Porter Stansberry advising going to 100% cash - Help!
Replies: 49
Views: 5985

Re: Bernstein: "If you've won the game, stop playing."

It really shouldn't be a big deal. Many, but not all, respected financial people advise becoming less aggressive in or near retirement. Mr. Bogle's guide was age in bonds, VG Target Date funds get to about 30% equities in their Retirement Income Fund. If you believe you have enough assets to fund re...
by Dandy
Sat Apr 18, 2015 7:01 am
 
Forum: Investing - Theory, News & General
Topic: Bernstein: "If you've won the game, stop playing."
Replies: 71
Views: 6493

Re: Bernstein: "If you've won the game, stop playing."

Did you ever hear of an analogy? I think Wm Bernstein is a respected investment person who takes investments seriously. He uses "game" as a reasonable analogy to having reached "your number". It's ok if you don't agree with he approach but it seems odd that offense seems to be ta...
by Dandy
Fri Apr 17, 2015 12:35 pm
 
Forum: Investing - Theory, News & General
Topic: Bernstein: "If you've won the game, stop playing."
Replies: 71
Views: 6493

Re: Bernstein: "If you've won the game, stop playing."

I like Wm Bernstein's "bottom up" approach i.e. figuring out how much you need to fund retirement and keeping those assets "safe". I am fortunate to have more than enough which I think is almost required to follow his approach. I have enough assets in "safe" products e....
by Dandy
Fri Apr 17, 2015 11:48 am
 
Forum: Investing - Theory, News & General
Topic: Bernstein: "If you've won the game, stop playing."
Replies: 71
Views: 6493

Re: Don't have a plan, what to do with my money?

One thing you should consider is when you will move out of your parents home. While it is financially beneficial it may not be good for your adult development. No great rush. Living out on your own and all that entails is a learning experience - even with a roommate. You get the full experience of f...
by Dandy
Fri Apr 17, 2015 8:54 am
 
Forum: Personal Consumer Issues
Topic: Don't have a plan, what to do with my money?
Replies: 12
Views: 1464

Re: John Bogle's Don't Peek Challenge

You're taking his advice way too literally Not after viewing the video. I previously thought he was making the comment in a off-hand manner. This don't peek video came off as a serious "rule" which he repeated over and over. If you are saying don't even open the envelope until you retire ...
by Dandy
Fri Apr 17, 2015 8:38 am
 
Forum: Investing - Theory, News & General
Topic: John Bogle's Don't Peek Challenge
Replies: 136
Views: 10986

Re: John Bogle's Don't Peek Challenge

I can't believe that such a wise man would advocate that people should not open their statements until retirement. That is one of the worst investment related advice I've ever heard. Is there any other trusted investment advisors/gurus that agree? Just because some investors might over react to mark...
by Dandy
Fri Apr 17, 2015 7:31 am
 
Forum: Investing - Theory, News & General
Topic: John Bogle's Don't Peek Challenge
Replies: 136
Views: 10986

Re: House down payment vs. more retirement savings

Buying a house is a life style choice. It may be a great one for a stay at home mom with two children. Today married couples are starting families and home buying later than in the past. Houses (and children) are expensive and time consuming. You seem to have a good focus on saving for retirement so...
by Dandy
Thu Apr 16, 2015 4:26 pm
 
Forum: Investing - Help with Personal Investments
Topic: House down payment vs. more retirement savings
Replies: 19
Views: 1551

Re: How's my diversification?

Total Stock Market - VTSMX 31% (70% of equity) Total Bond Market - VBMFX 29% (51% of fixed) All World except US - FTSE 13% (30% of equity) Short term bond fd - VFSTX 10% (18% of fixed) Penfed CD's - 8% (14% of fixed) Short term tips - VTIPX 7% (12% of fixed) Investment Cash 3% (6% of fixed) I like y...
by Dandy
Thu Apr 16, 2015 4:17 pm
 
Forum: Investing - Help with Personal Investments
Topic: How's my diversification?
Replies: 7
Views: 783

Re: yea or nay to 5 years CDs

I don't think it is a bad idea. But calculate the difference between the CD rates and the 1% savings. Don't you get the feeling that once you go the CD route the interest rates will jump? The beauty of bank CDs is that you know what it will cost to get out - that will tell you when a higher rate is ...
by Dandy
Thu Apr 16, 2015 4:05 pm
 
Forum: Investing - Help with Personal Investments
Topic: yea or nay to 5 years CDs
Replies: 21
Views: 2356

Re: Does 3-funds offer higher returns or lower risk?

The 3 fund portfolio is one of the best generic solutions. You can't go too far astray if you use those 3 funds in a reasonable allocation. That doesn't make it the best solution, the highest performer all time etc. It is a very good, broad based, low cost index fund solution. It deserves a lot of p...
by Dandy
Thu Apr 16, 2015 9:08 am
 
Forum: Investing - Theory, News & General
Topic: Does 3-funds offer higher returns or lower risk?
Replies: 42
Views: 5612

Re: How many baskets for your eggs?

Yes I have been looking at how to make retirement financial management easier for a number of reasons. Eventually, if I live long enough, I won't be up to complexity, my dear wife is not investment savvy and RMDs are decisions that I'd like to keep simple. I'm converting my wife's TIRA to Roth - one...
by Dandy
Thu Apr 16, 2015 8:40 am
 
Forum: Investing - Theory, News & General
Topic: Retirement expenditure concept
Replies: 45
Views: 3045

Re: Anxiety about market fluctuations

It is hard to break the frugal habit. Spending more than you actually have to brings on guilt feelings or opportunity lost feelings. Those feelings are often good but can become out of hand. Easing off that approach allows you to enjoy some of the fruits of your efforts. It is unlikely that you will...
by Dandy
Thu Apr 16, 2015 8:05 am
 
Forum: Investing - Help with Personal Investments
Topic: Anxiety about market fluctuations
Replies: 13
Views: 1091

Re: Sell Old Holdings to get to 3 Fund Portfolio?

That is incorrect. The children get your basis.

Actually, it's even worse. For gift tax, (taxable to you) use the current value. For capital gains, (taxable to them) use the basis value.


My mistake - thanks for correcting for me and others.
by Dandy
Wed Apr 15, 2015 7:33 am
 
Forum: Investing - Theory, News & General
Topic: Sell Old Holdings to get to 3 Fund Portfolio?
Replies: 17
Views: 1718

Re: How do you valuate a pension?

I think the original poster probably (like many people) tracks net worth as the number that indicates whether he/she is moving in the right direction. I guess we all play some mental games when it comes to money. You want to convert a pension to an asset so you feel better about your net worth. Ok ...
by Dandy
Wed Apr 15, 2015 7:24 am
 
Forum: Personal Finance (Not Investing)
Topic: How do you value a pension?
Replies: 18
Views: 1559

Re: Count Pension + SS as part of the Bond portion of AA?

She has more than enough income to cover her expenses. Forget converting streams of income into fake bonds and work on how to allocate her investable assets. How much risk does she need to take? On the surface very little. What goals does she have for the money? How much risk would she be comfortabl...
by Dandy
Wed Apr 15, 2015 6:49 am
 
Forum: Investing - Help with Personal Investments
Topic: Count Pension + SS as part of the Bond portion of AA?
Replies: 31
Views: 2077

Re: This retiree is a bit confused

A lot depends on what % of your portfolio do you need each year to support your retirement expenses and the size of your portfolio. 50/50 is a what I would call a "top down" look i.e. you decide on an overall allocation based on risk tolerance and then fill in with equity and fixed income ...
by Dandy
Tue Apr 14, 2015 5:07 pm
 
Forum: Investing - Theory, News & General
Topic: This retiree is a bit confused
Replies: 21
Views: 3374

Re: Sell Old Holdings to get to 3 Fund Portfolio?

It is only 6% of your portfolio which isn't that much. If you don't reinvest divs and cap gains the growth of the rest of your portfolio will drop that percentage even lower. I wouldn't be in a rush to liquidate it. Get the rest of your portfolio in the shape you want it. Make it the first taxable i...
by Dandy
Tue Apr 14, 2015 10:22 am
 
Forum: Investing - Theory, News & General
Topic: Sell Old Holdings to get to 3 Fund Portfolio?
Replies: 17
Views: 1718

Re: Question abt Stable Value fund

I loved having access to a Stable Value Fund for many decades it was my core fixed income allocation. I'd keep it until the rates for other rather safe fixed income investments like short term bonds can match their rate. You should be aware of any restrictions on moving in and ut of the Stable Value...
by Dandy
Tue Apr 14, 2015 7:11 am
 
Forum: Investing - Help with Personal Investments
Topic: Question abt Stable Value fund
Replies: 7
Views: 590

Re: How to Prepare for a Baby

When you say funding "our" 401k signals that both are working. If that is the plan going forward you need to understand what day care expense will be. Baby's are expensive so I would make sure to have some liquidity and/or surplus over monthly expenses. Also, what will be the income hit on...
by Dandy
Tue Apr 14, 2015 7:05 am
 
Forum: Personal Finance (Not Investing)
Topic: How to [Financially] Prepare for a Baby
Replies: 42
Views: 3540

Re: TAXES...oh...taxes...

I have never had taxes withheld on dividends and cap gains by my brokerage companies. By paying the taxes instead from my paychecks it was kind of another forced savings/investing habit and my taxable accounts appeared to grow more. Whatever mental tricks get you to the place you want to be is a go...
by Dandy
Tue Apr 14, 2015 6:54 am
 
Forum: Investing - Help with Personal Investments
Topic: TAXES...oh...taxes...
Replies: 27
Views: 2863

Re: Should I sell our rental house, reinvest profits elsewhe

I don't think your are going to grow to loving being a landlord. Selling it probably makes sense. I wouldn't put all the proceeds in the stock market. A lot depends on your current investment allocation, risk tolerance etc. I'd probably invest some, pay down some on the mortgage and keep some liquid...
by Dandy
Mon Apr 13, 2015 9:51 pm
 
Forum: Personal Finance (Not Investing)
Topic: Should I sell our rental house, reinvest profits elsewhere?
Replies: 36
Views: 1968

Re: Talking to People About Retirement

Your finances are your business. I'm shocked at how many people, who make a good living, feel they don't have enough to retire. What were they thinking all these years? My wife was discussing retirement and savings and her friends mentioned their concern. When she didn't they asked when did you star...
by Dandy
Mon Apr 13, 2015 9:32 pm
 
Forum: Personal Finance (Not Investing)
Topic: Talking to People About Retirement
Replies: 70
Views: 6306

Re: Take mortgage on primary residence to buy rental propert

If things go south would she rather have her home repossessed or the rental property? That is the risk the reward is lower rate.
by Dandy
Mon Apr 13, 2015 9:06 pm
 
Forum: Investing - Theory, News & General
Topic: Take mortgage on primary residence to buy rental property?
Replies: 8
Views: 976

Re: would "flight to safety" go to bonds after all?

Negative yields is a bit scary. Who would ever think that they would be offered and actually used? Who knows what will happen. I try to diversify my fixed income TIPS, short term index/corporate, Total Bond (as part of Balanced index), CD ladder etc. I also have kept my equity allocation a percent o...
by Dandy
Mon Apr 13, 2015 9:03 pm
 
Forum: Investing - Theory, News & General
Topic: would "flight to safety" go to bonds after all?
Replies: 32
Views: 2526

Re: TAXES...oh...taxes...

I have Vanguard withhold for Federal Taxes on taxable dividends and capital gains. As your taxable portfolio grows so do the dividend and cap gain distributions. VG doesn't withhold state taxes on taxable accounts unless the state requires it. Why wouldn't a state want to get money early?? Oh well h...
by Dandy
Mon Apr 13, 2015 8:43 pm
 
Forum: Investing - Help with Personal Investments
Topic: TAXES...oh...taxes...
Replies: 27
Views: 2863

Re: How much riskier are munis than treasuries?

Why wouldn't you think of it? Is it the liquidity risk as mentioned? Credit risk? I don't think there is a huge credit risk. Different investments have different risk/benefits. I do remember that muni's had a bit of a problem during the 2008-9 crisis - I think hedge funds were selling muni's instea...
by Dandy
Mon Apr 13, 2015 3:49 pm
 
Forum: Investing - Theory, News & General
Topic: How much riskier are munis than treasuries?
Replies: 32
Views: 3741

Re: How much riskier are munis than treasuries?

I wouldn't think of having 100% of taxable fixed income in muni bond funds even a national muni fund. For me it isn't all about avoiding taxes. So, maybe 50% muni and 30% government/treasury bond fund and 20% Total Bond or even CDs.
by Dandy
Mon Apr 13, 2015 1:16 pm
 
Forum: Investing - Theory, News & General
Topic: How much riskier are munis than treasuries?
Replies: 32
Views: 3741

Re: Am I part of the problem??

Been there done that. Worked for two mutual fund companies that were owned by insurance company/brokerage firms late in my career.. Mostly, I managed the mutual fund call centers. I wasn't a fan of the funds and often had to deal with dissatisfied customers. I didn't really have the option of changi...
by Dandy
Mon Apr 13, 2015 10:13 am
 
Forum: Personal Finance (Not Investing)
Topic: Am I part of the problem??
Replies: 70
Views: 7796

Re: AA beyond achievement of your "number"

What is your goal for the money not needed for funding your retirement? You indicated no major increase in living standards. So, heirs?, Charity? Seeing how much you can accumulate before you die? It is an unusual position. I would think about what would happen to your money upon death? How would yo...
by Dandy
Mon Apr 13, 2015 9:55 am
 
Forum: Investing - Theory, News & General
Topic: AA beyond achievement of your "number"
Replies: 22
Views: 2204

Re: RMD and paying taxes

having no equities in your IRA and no bonds in your taxable account is problematic for me. I get that cap gain taxes are much more favorable for most than ordinary income tax for most. The focus only on extra taxes at RMD because the investor had equities included seems to understate a point that eq...
by Dandy
Sun Apr 12, 2015 9:52 am
 
Forum: Personal Finance (Not Investing)
Topic: RMD and paying taxes
Replies: 12
Views: 1243

Re: WSJ: You may need less than 80% in retirement

What always bothers me with these discussions is it is one thing to talk about the % of income you can retire on day one but what about a decade or 2 down the road? No more earning power, withdrawals, maybe no pension (and rarely COLA pension) and maybe not such a low inflation rate.
by Dandy
Sat Apr 11, 2015 7:05 am
 
Forum: Investing - Theory, News & General
Topic: WSJ: You may need less than 80% in retirement
Replies: 98
Views: 8875

Re: Asset Allocation Feedback

While Social Security is adjusted for inflation is your pension income? If not, that could require you to tap your Roth $ down the line. Also, you are very young retirees (good for you) so you have a bit longer to fund retirement. Many would say invest like you are investing for your heirs. I say in...
by Dandy
Sat Apr 11, 2015 7:01 am
 
Forum: Investing - Help with Personal Investments
Topic: Asset Allocation Feedback
Replies: 7
Views: 709

Re: How does a retired person mitigate a Bond Bubble?

I am a bit surprised at the notion that holding more stocks would somehow mitigate adverse effect of a bond bubble going puff. That isn't meant to be a sure thing. Bond bubbles can be caused by many things e.g. flight to quality when some/many economies are sagging, exceptionally low interest rates...
by Dandy
Fri Apr 10, 2015 12:14 pm
 
Forum: Investing - Theory, News & General
Topic: How does a retired person mitigate a Bond Bubble?
Replies: 46
Views: 5674

Re: Online Banks with HELOC

My HELOC expires in a couple of years so I've been looking around - haven't seen HELOC rates lower than 4% with a maximum of 18% - they are all tied to some market rate plus x%. I have my HELOC with Bank of America and have a 2.74% rate currently. My HELOC and no fee checking provide a very flexible...
by Dandy
Fri Apr 10, 2015 8:27 am
 
Forum: Personal Finance (Not Investing)
Topic: Online Banks with HELOC
Replies: 4
Views: 375

Re: making the switch to Ally Bank

I never had a problem with Ally - no gotchas and excellent service. I'm a bit disappointed in their rates. Not bad but they used to be great. I thought when they shed their government ownership they would return to leading rates as well as no gotchas. I almost made the switch to their checking but t...
by Dandy
Fri Apr 10, 2015 8:10 am
 
Forum: Personal Finance (Not Investing)
Topic: making the switch to Ally Bank
Replies: 51
Views: 4100

Re: It's Official - We're Done

Neat - I can't wait until my daughters can say the same. Hope I'm around to see it.
by Dandy
Fri Apr 10, 2015 8:04 am
 
Forum: Personal Finance (Not Investing)
Topic: It's Official - We're Done
Replies: 38
Views: 8038

Re: How does a retired person mitigate a Bond Bubble?

I don't think staying put would be a disaster. Equity risks are so much higher than intermediate bonds. I like to have much of my fixed income either in short term bond funds or "safe" products like CDs, Savings accounts - or a Stable Value Fund if I had access to one. You/she have decided...
by Dandy
Fri Apr 10, 2015 8:00 am
 
Forum: Investing - Theory, News & General
Topic: How does a retired person mitigate a Bond Bubble?
Replies: 46
Views: 5674

Re: CD question

CD in a tax deferred is the best since it avoids current taxes. But, if you have taxable money that can't be sheltered and a CD term and rate are favorable - it is ok. You want to minimize taxes but sometimes, like saving for a down payment you might value safety a bit more than tax exposure. I want...
by Dandy
Fri Apr 10, 2015 7:46 am
 
Forum: Investing - Help with Personal Investments
Topic: CD question
Replies: 2
Views: 407

Re: Bogle possible mistake? Discussion [on age-based portfol

I think there is a general assumption that many/most retirees need and ability to take risk declines as they age. Not saying this is valid but the loss of wages, the need to draw on investments and as the they age toward the average life expectancy, the decreasing time frames etc seem to suggest les...
by Dandy
Thu Apr 09, 2015 12:39 pm
 
Forum: Investing - Theory, News & General
Topic: Bogle possible mistake? Discussion [on age-based portfolios]
Replies: 53
Views: 4948

Re: Thoughts on this long term equal weight allocation

I still feel that people fall too much in love with equal weighting and that more weight to core makes sense. I understand the convenience in using round numbers but some investments are so much different as far as risk and diversity that maybe a little more thought than have them all have an equal ...
by Dandy
Wed Apr 08, 2015 9:19 am
 
Forum: Investing - Help with Personal Investments
Topic: Thoughts on this long term equal weight allocation
Replies: 4
Views: 419

Re: First ever change of AA constitutes 'frequent trading'??

yeah it is a bit annoying. But it protects all of us from true market timers. i.e. those that make large moves on an almost daily basis trying to capture small gains. I ran call centers for two mutual fund companies and trying to stop these people was almost impossible. Fund companies are required t...
by Dandy
Wed Apr 08, 2015 8:49 am
 
Forum: Investing - Theory, News & General
Topic: First ever change of AA constitutes 'frequent trading'???
Replies: 13
Views: 1147

Re: Need to worry about turnover rate?

The concern about turnover rate is two fold - 1. can mean very active management vs the Boglehead preferred more passive approach 2. the trading costs for buys and sells are not reflected in the expense ratio. So a fund that has a very high turnover rate is more expensive than you might think by loo...
by Dandy
Wed Apr 08, 2015 8:42 am
 
Forum: Investing - Help with Personal Investments
Topic: Need to worry about turnover rate?
Replies: 5
Views: 497

Re: Money saved for house in bonds?

A short term bond fund isn't a big risk but not likely to be a big winner either. The small tax benefit could be negated if/when interest rates rise. A lot depends on how critical a minor loss would be. Usually, home buyers wish they had a bit more than they thought when bidding on a house. If it we...
by Dandy
Wed Apr 08, 2015 8:37 am
 
Forum: Investing - Help with Personal Investments
Topic: Money saved for house in bonds?
Replies: 6
Views: 597

Re: Required minimum distribution and year end fund distribu

You are not losing money if you take the RMD before year end distributions. The accumulated distribution amount is reflected in the fund's NAV before the distribution and not in the lower NAV after distribution. So that is not a good reason to wait until the last days of December to trigger your RMD...
by Dandy
Wed Apr 08, 2015 8:30 am
 
Forum: Investing - Help with Personal Investments
Topic: Required minimum distribution and year end fund distribution
Replies: 29
Views: 1965

Re: Thoughts on this long term equal weight allocation

What is the purpose of being so precisely equal weight down to 2 decimal points? You have core type products like S&P 500 and Total Bond with the same allocation as more fringe/riskier REITS and Emerging markets. Usually, more is allocated to core type investments and less to the rest.
by Dandy
Wed Apr 08, 2015 8:12 am
 
Forum: Investing - Help with Personal Investments
Topic: Thoughts on this long term equal weight allocation
Replies: 4
Views: 419

Re: What should I do with this Whole Life 65 policy?

1. Does the premium stop at any age. I would have guessed it would have stopped at 65 but the illustration data goes on for quite a number of years. If it does stop then how many more years before it stops. Premium ends at age 65. Cost is $12k or $400/yr. 2. What is you dividend option now - cash or...
by Dandy
Tue Apr 07, 2015 3:09 pm
 
Forum: Personal Finance (Not Investing)
Topic: What should I do with this Whole Life 65 policy?
Replies: 17
Views: 1512

Re: What should I do with this Whole Life 65 policy?

I believe the non guaranteed dividend info is supposed to be based on historical information - I don't think they can just publish any number. Here are the questions I would have: 1. Does the premium stop at any age. I would have guessed it would have stopped at 65 but the illustration data goes on ...
by Dandy
Tue Apr 07, 2015 12:00 pm
 
Forum: Personal Finance (Not Investing)
Topic: What should I do with this Whole Life 65 policy?
Replies: 17
Views: 1512

Re: Help me Understand Why I Keep My Bond Allocations

I generally believe that some diversification of fixed income is a good idea. The higher you fixed income allocation the more I favor diversification. Some, tips, short term and intermediate term bond funds, CDs, muni funds etc. Cash is hated because of almost zero returns but will look better if/wh...
by Dandy
Tue Apr 07, 2015 11:12 am
 
Forum: Investing - Help with Personal Investments
Topic: Help me Understand Why I Keep My Bond Allocations
Replies: 15
Views: 1360

Re: Portfolio Rebalancing and Tax Implications

Deciding on risk tolerance and the corresponding allocation to address that risk tolerance is best guess at best. Risk tolerance, even if assessed correctly, can change over time. Rebalancing to control risk is a good idea. Trying to be precise about rebalancing is trying to be precise in an impreci...
by Dandy
Tue Apr 07, 2015 7:43 am
 
Forum: Investing - Help with Personal Investments
Topic: Portfolio Rebalancing and Tax Implications
Replies: 6
Views: 630
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