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by Dandy
Wed May 27, 2015 6:17 am
Forum: Personal Consumer Issues
Topic: Boglehead 4wd Car (for family)?
Replies: 49
Views: 4818

Re: Boglehead 4wd Car (for family)?

We bought a Subaru Forester and really like it. Safe, good mileage - feel secure driving grand kids around in it.
by Dandy
Wed May 27, 2015 6:01 am
Forum: Investing - Help with Personal Investments
Topic: I know you hate Whole Life Insurance
Replies: 21
Views: 1409

Re: I know you hate Whole Life Insurance

I would check with a fee only investment advisor and/or estate lawyer not rely on the agent. There are some valid uses of whole life insurance but they are relatively rare. Sounds like the agent is overselling. Some agents actually believe their pitch others just look for commissions.
by Dandy
Tue May 26, 2015 3:05 pm
Forum: Personal Finance (Not Investing)
Topic: Early/Earlier/Earliest Retirement?
Replies: 17
Views: 2352

Re: Early/Earlier/Earliest Retirement?

I would try to enjoy life more now without necessarily retiring. Is that possible e.g. adding some additional travel for example. Do you have friends that don't work so they might join you on some travel when you retire early? Some people get along great and travel alone - others may want some frien...
by Dandy
Tue May 26, 2015 2:51 pm
Forum: Investing - Theory, News & General
Topic: Wellington & Wellesley
Replies: 30
Views: 2887

Re: Wellington & Wellesley

Broad based, passive, low cost and low turnover are earmarks of "good guy" funds. Vanguard has funds that meet the test but are not technically index funds. Sometime because there may not be a suitable index? Or no need for an index e.g. short term Treasury fund. Wellesley is a good perfor...
by Dandy
Mon May 25, 2015 6:17 am
Forum: Personal Finance (Not Investing)
Topic: When is it safe to share financial details with gf, future wife
Replies: 53
Views: 4581

Re: When is it safe to share financial details with gf, future wife

I would be most interested in sharing debt and income and a general idea of savings/investment e.g. low 6 figures. I'd wait till marriage for details.
by Dandy
Mon May 25, 2015 4:51 am
Forum: Investing - Help with Personal Investments
Topic: Plan for Asset Allocation changes with age
Replies: 14
Views: 896

Re: Plan for Asset Allocation changes with age

I don't think you need to lockstep the reductions. I set a goal in my early 60's to get my 50+% equity allocation to 40% by age 70. By adjusting withdrawals, how I reinvest dividends, selling some "winners" during the 2013 bull run, etc. I have gradually reduced it to 43% at age 67. If I e...
by Dandy
Sun May 24, 2015 3:25 pm
Forum: Investing - Theory, News & General
Topic: Why not overweight international?
Replies: 37
Views: 3366

Re: Why not overweight international?

But that is precisely the paradox: if there is no guarantee it will continue, then it's not truly a safe harbor So, basically living in a safe harbor (that has been one for decades at least) with one of the largest economies etc you should basically ignore that and go for a global allocation becaus...
by Dandy
Sun May 24, 2015 10:03 am
Forum: Personal Finance (Not Investing)
Topic: Whole life or term life?
Replies: 33
Views: 2525

Re: Whole life or term life?

I would normally agree with term. I recently read an article from one of the "good guys" (can't remember who or the source :oops: ) who compared buy term at a young age vs whole life paid up at 65. The gist of the article was that while the term buyer paid something like $4,000 less a year...
by Dandy
Sun May 24, 2015 9:40 am
Forum: Investing - Theory, News & General
Topic: Why government bonds at all?
Replies: 55
Views: 3855

Re: Why government bonds at all?

US Government bonds have unique features - e.g. "no" risk of default, taxing power to raise funds vs the "risk" of attracting discretionary customers, a save haven for investors when there is economic or political fear. State government bonds avoid federal taxes and federal bonds...
by Dandy
Sun May 24, 2015 8:21 am
Forum: Investing - Theory, News & General
Topic: Why not overweight international?
Replies: 37
Views: 3366

Re: Why not overweight international?

First, a lot of countries have exceptional qualities that could make them candidates for overweighting based on natural resources, political stability or other factors (Canada is huge, stable, lots of natural resources, Australia too). Second and far more importantly: which of the factors you liste...
by Dandy
Sat May 23, 2015 2:33 pm
Forum: Investing - Theory, News & General
Topic: Advice from John Bogle and Warren Buffett
Replies: 35
Views: 2666

Re: advice from John Bogle and Warren Buffett

John Bogle recommends owning and buying ONLY the Vanguard Total Stock Market Index fund and the Vanguard Total Bond Market Index fund. ]Mr. Bogle says a lot of things - recently he expressed his concerns about the Total bond fund having too much Treasuries and recommended adding some corporate bond...
by Dandy
Sat May 23, 2015 2:25 pm
Forum: Investing - Theory, News & General
Topic: Why not overweight international?
Replies: 37
Views: 3366

Re: Why not overweight international?

There is some rationale for US home country bias. The US isn't just a typical country. Its size, resources and stability over decades is somewhat unique. It also has abundant resources and two oceans separating it from much of the worlds disputes. It is a safe haven - that is why when things get tou...
by Dandy
Sat May 23, 2015 1:42 pm
Forum: Investing - Help with Personal Investments
Topic: Rebalancing bands in taxable accounts
Replies: 8
Views: 458

Re: Rebalancing bands in taxable accounts

I have equities and bonds in both my TIRA and taxable. Never used taxable to rebalance unless I used new contributions or distributions that were sent to Prime instead of being reinvested. In decades of investing never had to incur taxes to rebalance. Also, I don't worry too much about the sub alloc...
by Dandy
Fri May 22, 2015 5:56 am
Forum: Investing - Theory, News & General
Topic: Missing Bonds data in Balances & Holdings
Replies: 8
Views: 585

Re: Missing Bonds data in Balances & Holdings

Maybe I missed it but shouldn't there be some VG communication to customers on this?
by Dandy
Fri May 22, 2015 5:54 am
Forum: Investing - Theory, News & General
Topic: Missing Bonds data in Balances & Holdings
Replies: 8
Views: 585

Re: Missing Bonds data in Balances & Holdings

Brokerage CDs are not showing any changes either - at least for several days.
by Dandy
Fri May 22, 2015 5:32 am
Forum: Personal Finance (Not Investing)
Topic: The end of the nest egg
Replies: 30
Views: 7002

Re: The end of the nest egg

First guessing your withdrawal needs decades out is very iffy - lots of potential for unexpected expenses, same for guesses about inflation and portfolio earnings. The greater percentage of withdrawals that must come from investments vs pensions, SS or annuities the less reliable the forecast will b...
by Dandy
Thu May 21, 2015 6:30 am
Forum: Investing - Help with Personal Investments
Topic: Should I sell my company's stock and exchange it for an SP500 index fund?
Replies: 60
Views: 3506

Re: Should I sell my company's stock and exchange it for an SP500 index fund?

Yikes! From personally observed experience you are playing with fire. I worked at a major financial company that paid it's execs with company stocks e.g. a percent of bonus went to "units" that could be converted to stock after x years, the 401k match was all company stock that couldn't be...
by Dandy
Tue May 19, 2015 7:19 pm
Forum: Investing - Help with Personal Investments
Topic: My Portfolio - Am I a too risk averse?
Replies: 14
Views: 1515

Re: My Portfolio - Am I a too risk averse?

when you are really risk averse it is hard to invest or make investment decisions. Maybe pick a balanced fund, life strategy fund, or Target date fund that fits a bit more risk than current allocation. Let the pros make the decisions for you. In taxable you can use the Tax managed balance fund and a...
by Dandy
Tue May 19, 2015 3:11 pm
Forum: Investing - Theory, News & General
Topic: Paying zero fees on a hand picked stock portfolio
Replies: 66
Views: 4067

Re: Paying zero fees on a hand picked stock portfolio

Really? You can buy the Total US Stock Market Fund for 5 basis points a year - sometimes even less in some 401ks. It is exciting and a challenge to pick a individual stock portfolio and mange it - that is often a gambling emotion or ego trip. There are a lot of really smart people who flamed out by ...
by Dandy
Tue May 19, 2015 12:24 pm
Forum: Investing - Theory, News & General
Topic: Best Asset Allocation if you've "won the game"
Replies: 86
Views: 8495

Re: Best Asset Allocation if you've "won the game"

None of the solutions are perfect. TIPS come close - but as noted may not keep up with personal inflation - and let's not forget that estimated expenses made at say 60 are a bit of a wild guess even ignoring inflation. Lots of bumps in the road ahead that might jack up one time and ongoing expenses....
by Dandy
Tue May 19, 2015 11:46 am
Forum: Investing - Theory, News & General
Topic: Money Market Expense Ratios
Replies: 8
Views: 804

Re: Money Market Expense Ratios

money market are expensive for a reason. They usually have a lot of transactions vs a normal bond or stock fund. Check writing and all the related issues when people write checks, clearing account in brokerage accounts, a lot of investors direct dividends and cap gains to money markets and then use ...
by Dandy
Tue May 19, 2015 7:08 am
Forum: Investing - Theory, News & General
Topic: What's so great about simplicity?
Replies: 117
Views: 8607

Re: What's so great about simplicity?

Simplicity is in the eye of the beholder. For some that is a World fund for others the 3 fund, for others it is more. Just try to accomplish your goal without unnecessary complexity. Having lots of small investments and many firms to deal with gets old as you get old. And, for the most part, does li...
by Dandy
Mon May 18, 2015 7:55 am
Forum: Investing - Theory, News & General
Topic: What's so great about simplicity?
Replies: 117
Views: 8607

Re: What's so great about simplicity?

Simplicity can be over rated but it seems most err on the side of having too many products - no real plan but maybe if I have a lot of different things I'll be ok. Brokers also tend to have clients with lots of moving parts - it makes them seem on top of things when clients see they have 1% in a Mex...
by Dandy
Mon May 18, 2015 7:39 am
Forum: Investing - Theory, News & General
Topic: Target Allocations between equities and bonds - Is the reasoning sound?
Replies: 49
Views: 3419

Re: Target Allocations between equities and bonds - Is the reasoning sound?

First of all I think I remember that having at least 20 fixed income did better over time than 100% equities - there have been periods when bonds out performed equities. Certainly, volatility would be less. Many experienced investors who thought they understood the risks got a wake up call in 2008. ...
by Dandy
Mon May 18, 2015 7:24 am
Forum: Investing - Help with Personal Investments
Topic: ? Portfolio for older couple
Replies: 11
Views: 2483

Re: ? Portfolio for older couple

It appears that you are in great shape. So the question is who are you investing for? Sounds like it is for your heirs. So your current portfolio seems fine for that. I certainly would think twice about incurring taxes to re configure your portfolio. I would consider having dividends and cap gain di...
by Dandy
Mon May 18, 2015 7:06 am
Forum: Investing - Help with Personal Investments
Topic: Time to reach 1M and 2M milestones
Replies: 63
Views: 9342

Re: Time to reach 1M and 2M milestones

Once you have the first million those assets provide a nice and increasing tail wind to get you to the next million. A modest allocation might return 5% which would be 50k the first year plus your contributions and the gain on both. That usually is a significant boost to your asset growth -- the pow...
by Dandy
Sun May 17, 2015 10:11 am
Forum: Investing - Help with Personal Investments
Topic: Lightbulb went off around Asset Allocation
Replies: 15
Views: 1960

Re: Lightbulb went off around Asset Allocation

That is why something like age in bonds is a general good starting point . Late starter - maybe you need to have a higher allocation to equities. Retired and have a large asset base and a pension - maybe more equities also. I think in general age in bonds follows the general assumption that you shou...
by Dandy
Sun May 17, 2015 6:59 am
Forum: Investing - Theory, News & General
Topic: Your Safety Net
Replies: 31
Views: 3670

Re: Your Safety Net

I have a 43/57 allocation at age 67. For the fixed income I allocate about 1/3 intermediate bonds, 1/3 short term bonds and 1/3 no loss of principal e.g. CDs, Savings, bank money market, HH/EE bonds. The amount in the no loss of principal equals about 11 years worth of current draw down. I am fortun...
by Dandy
Sat May 16, 2015 9:16 pm
Forum: Investing - Theory, News & General
Topic: Another take on "rising equity glidepath" in retirement
Replies: 19
Views: 2439

Re: Another take on "rising equity glidepath" in retirement

Here's the problem with the rising glidepath approach IMO--it ignores a very important factor, human behavior. How many people do you know that are well into retirement that could tolerate a huge bear market and watch a large percent of their portfolio disappear, knowing they have no chance to earn...
by Dandy
Sat May 16, 2015 9:41 am
Forum: Investing - Theory, News & General
Topic: Best Asset Allocation if you've "won the game"
Replies: 86
Views: 8495

Re: Best Asset Allocation if you've "won the game"

I don't have a 25 year ladder I have more than 23 years in "safe" products at age 67. 11 yrs in CDs 12 yrs in short term bond funds The above is based on current withdrawal dollars and I will collect Social Security at age 70 which will substantially lower my withdrawal needs - by at least...
by Dandy
Sat May 16, 2015 9:11 am
Forum: Investing - Theory, News & General
Topic: Long and Short of Finding Bond Balance
Replies: 3
Views: 617

Re: Long and Short of Finding Bond Balance

Generally agree. though people should stop talking only about bonds and talk about fixed income. When bank savings accounts, money market accounts and CDs pay more than many of the bond counterparts with no risk - they should be considered as part of the diversity mix.
by Dandy
Sat May 16, 2015 9:05 am
Forum: Investing - Theory, News & General
Topic: At what point would you want "capped" indices?
Replies: 12
Views: 792

Re: At what point would you want "capped" indices?

One of the things I don't like about our index funds is that we are exposed a bit more to bubbles in companies - like Apple. I don't know of any "solution" that would be better than what we have. The risk is that the "cure" will be worse than the disease. I think the 5% regulatio...
by Dandy
Sat May 16, 2015 8:52 am
Forum: Investing - Theory, News & General
Topic: Why is Vanguard's Web Site So Bad?
Replies: 64
Views: 5010

Re: Why is Vanguard's Web Site So Bad?

I am considering changing my email address with them to an email account that I never look at. Really - take a breath. You might get a critical email from VG instead of just a link to a prospectus page. When you invest in VG you get the whole package e.g. low cost and not the slickest web. For what...
by Dandy
Sat May 16, 2015 8:41 am
Forum: Investing - Theory, News & General
Topic: Bonds - Picking up Nickels in Front of a Steamroller?
Replies: 50
Views: 4993

Re: Bonds - Picking up Nickels in Front of a Steamroller?

What is the purpose of your fixed income allocation? for many it is to modify risk/stability. while yields are low fixed income still provides that benefit. jumping from fixed income to equities trades stability for much greater risk That is your call but don't deceive yourself it is a significant c...
by Dandy
Sat May 16, 2015 8:08 am
Forum: Investing - Theory, News & General
Topic: Best Asset Allocation if you've "won the game"
Replies: 86
Views: 8495

Re: Best Asset Allocation if you've "won the game"

I think in retirement the overall allocation to stocks and fixed income is a bit secondary. At retirement usually the ability to earn meaningful income quickly goes to zero as does adds to the investment portfolio and any company match or bonuses. So, for many it is a vastly different state. So, bas...
by Dandy
Fri May 15, 2015 2:45 pm
Forum: Investing - Help with Personal Investments
Topic: Lightbulb went off around Asset Allocation
Replies: 15
Views: 1960

Re: Lightbulb went off around Asset Allocation

risk and risk tolerance is in dollars not in percentages. Sure makes sense to me to dial back equity allocation a bit when your portfolio dollars are very significant. That might be the subtle benefit of the age in bonds idea - not only because you are older and may have less time to recover from a ...
by Dandy
Fri May 15, 2015 9:42 am
Forum: Investing - Theory, News & General
Topic: Vanguard's email "The case for a global portfolio"
Replies: 46
Views: 4097

Re: Vanguard's email "The case for a global portfolio"

In 2004-2006, I warned people about a potential US housing crash. I referenced this 2004 Chart from Economist.com. Most Americans told me that housing only goes up, and that a national housing decline was impossible. I pointed out that Japan real estate had declined since 1990. People dismissed my ...
by Dandy
Fri May 15, 2015 8:49 am
Forum: Investing - Theory, News & General
Topic: Vanguard's email "The case for a global portfolio"
Replies: 46
Views: 4097

Re: Vanguard's email "The case for a global portfolio"

The problem with putting most of your stock portfolio with one country is that that one country can implode badly, even over a long period of time. True. That speaks for some international diversity -- not necessarily global equity allocation. It also speaks, in retirement, to having enough "s...
by Dandy
Fri May 15, 2015 7:46 am
Forum: Investing - Theory, News & General
Topic: Working Age population vs. stock purchases
Replies: 6
Views: 783

Re: Working Age population vs. stock purchases

That is a possibility. When I started work there were very few young people that invested in stocks. There were no IRAs, 401ks, ROTHs, you basically had to open a brokerage account and invest in individual stocks or some front end loaded mutual funds. There also was no cable, internet, boomberg or C...
by Dandy
Fri May 15, 2015 7:31 am
Forum: Investing - Theory, News & General
Topic: I'm so glad I bought bonds in taxable!
Replies: 13
Views: 3522

Re: I'm so glad I bought bonds in taxable!

We tend to think of things as all or nothing. There are surely advantages for the recommended placement of bonds in tax deferred and stocks in taxable. If equities plunge to rebalance you may have to buy equities in your TIRA/401k. Not a problem. If equities soar you may have to sell equities in you...
by Dandy
Fri May 15, 2015 7:04 am
Forum: Investing - Theory, News & General
Topic: Vanguard's email "The case for a global portfolio"
Replies: 46
Views: 4097

Re: Vanguard's email "The case for a global portfolio"

Vanguard researchers have found that investing in companies outside of the United States can offer exposure to a wider array of economic and market forces and can provide an added diversification benefit Wow! what a research breakthrough!! When did these researchers discover this amazing fact? Some...
by Dandy
Thu May 14, 2015 3:35 pm
Forum: Investing - Theory, News & General
Topic: Poll: Average E/R [Expense Ratio]
Replies: 49
Views: 3154

Re: Poll: Average E/R [Expense Ratio]

this for the mutual fund investments that are all at Vanguard. Really can't count CDs, savings accounts etc since there is no published expense ratio - you can bet the banks aren't giving you that CD without holding on to a much higher "profit" when they loan that money out. We only see th...
by Dandy
Thu May 14, 2015 3:19 pm
Forum: Investing - Help with Personal Investments
Topic: Asset location for bonds – Clearing the conflicting opinions
Replies: 13
Views: 1080

Re: Asset location for bonds – Clearing the conflicting opinions

the basic reason for bonds in tax advantaged (non Roth) account is that all distributions from them are taxed as ordinary income and you can't take losses on those investments should you sell at a loss. Stock distributions are taxed at lower rates (for many people) when held in taxable accounts and ...
by Dandy
Thu May 14, 2015 2:41 pm
Forum: Investing - Help with Personal Investments
Topic: Emergency Reserves--Where should I put them?
Replies: 28
Views: 4224

Re: Emergency Reserves--Where should I put them?

Short term corporate bond funds are paying a bit over 1.5% with some default and interest rate risk. Doesn't seem the benefit is worth the risk. You can get a bit over 1% with some on line savings accounts and some 1 year CDs. You can buy an intermediate term e.g. 5 year bank CD with some and "...
by Dandy
Thu May 14, 2015 7:00 am
Forum: Investing - Help with Personal Investments
Topic: How much in cash?
Replies: 35
Views: 2933

Re: How much in cash?

Cash is often different things to different people. To me it means very safe and very liquid. I don't include short term bonds some do. I count savings accounts, money market accounts. I also count CDs, EE and HH bond - though they are not overly liquid but are very safe. A stock fund is liquid - yo...
by Dandy
Wed May 13, 2015 7:19 am
Forum: Personal Finance (Not Investing)
Topic: New Math for Retirees and the 4% Withdrawal Rule
Replies: 89
Views: 9820

Re: New Math for Retirees and the 4% Withdrawal Rule

There is no set it and forget it withdrawal strategy - studies only provide reasonable starting points. You need to periodically look at your expenses, health and portfolio and make adjustments if necessary. Early, minor adjustments are preferred. It is hard to set a withdrawal strategy to cover 30 ...
by Dandy
Wed May 13, 2015 6:27 am
Forum: Investing - Help with Personal Investments
Topic: Total World Stock Index
Replies: 44
Views: 3763

Re: Total World Stock Index

Pretty obvious, no? The introduction and growth of low-cost international index funds. Sure, when the 500 index fund from Vanguard was the only lost-cost option, it made sense. Then there was Total Stock, so why not diversify further? Then there was Total International, so why not diversify further...
by Dandy
Tue May 12, 2015 4:27 pm
Forum: Investing - Help with Personal Investments
Topic: Vanguard Financial Plan Under the New [ 0.3% ] Fee
Replies: 33
Views: 5184

Re: Vanguard Financial Plan Under the New [ 0.3% ] Fee

Do the Vanguard advisors really give tax advice? Seems like other advisor services are pretty explicit that they will not give tax advice. Not sophisticated advice but guidance --things like RMDs are taxable, you will only pay taxes on a taxable sale if there is a gain and then usually at a lower r...
by Dandy
Tue May 12, 2015 12:57 pm
Forum: Investing - Theory, News & General
Topic: "Why Would an Experienced Investor Buy a Target-Date Fund?"
Replies: 38
Views: 4628

Re: "Why Would an Experienced Investor Buy a Target-Date Fund?"

It isn't any particular change that bothers me, but the number and frequency taken in total. And I'm sure Vanguard sincerely believes they are all improvements, because you can make a convincing argument in favor of almost any change. But if the goal is to say the course without following the lates...
by Dandy
Tue May 12, 2015 12:09 pm
Forum: Investing - Help with Personal Investments
Topic: Anybody 50/50?
Replies: 78
Views: 6171

Re: Anybody 50/50?

During my accumulation years I think the highest equity allocation was 55% - now at 67 it is 42%. I did fine asset wise and sleep wise. It was a bit tense during 2008-09 when I had just retired but it would have been much scarier if I had a higher equity allocation. I was lucky with a generally favo...

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