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Re: Recommendations for online bank?

I've used both Ally and Discover Bank. Never had a problem. Rather than replace my brick bank I use their no fee checking as my main checking account and run everything through it. I have a great HELOC (2.74%) when I need it and can transfer money from my HELOC to checking and vice versa with a few ...
by Dandy
Thu Nov 27, 2014 7:47 am
 
Forum: Personal Finance (Not Investing)
Topic: Recommendations for online bank?
Replies: 17
Views: 1605

Re: Vanguard Money Market Fund - keep open ?

Seems like a no brainer to close it. banks especially on line banks offer better deals -- especially if you use a debit card a lot (which I don't). Prime and all mutual fund money markets are unlikely to do well in the future do to restrictions relating to quality and duration/term of investments th...
by Dandy
Wed Nov 26, 2014 11:18 am
 
Forum: Personal Finance (Not Investing)
Topic: Vanguard Money Market Fund - keep open ?
Replies: 17
Views: 1479

Re: Transitioning from individual stock portfolio to index f

my guess is that unless you have to get some stocks with potential capital losses to offset gains from stock sales you get away from incurring large tax bill as/if you convert your individual stocks to index funds. You need to decide what you ideal equity/fixed income allocation should be. Holding e...
by Dandy
Wed Nov 26, 2014 9:26 am
 
Forum: Investing - Help with Personal Investments
Topic: Transitioning from individual stock portfolio to index funds
Replies: 13
Views: 1180

Re: Wisdom: When to drop disability insurance?

I had disability insurance in case a disability cut my ability to support my wife and children was in doubt. Once that was not the case I dropped it. I believe the kids were out of college (not debt), mortgage paid off and a few years from retirement.
by Dandy
Tue Nov 25, 2014 8:32 am
 
Forum: Personal Finance (Not Investing)
Topic: Wisdom: When to drop disability insurance?
Replies: 11
Views: 1188

Re: Brother wants me to co-sign a house with him

I'm sure there are a lot of family working and mixing their finances success stories. I have seen just the opposite. Brother suing brother for stealing. Nephew and Uncle living next door and in the same business not talking to each other for decades. Family expects a lot more from family than from n...
by Dandy
Tue Nov 25, 2014 8:28 am
 
Forum: Personal Finance (Not Investing)
Topic: Brother wants me to co-sign a house with him
Replies: 41
Views: 2841

Re: What do you splurge on?

Always had a great family vacation - even as I car pooled with an 11 year old Pinto!!. A true reward for hard work done during the whole year done by kids and parents. Great bonding especially as the kids got older -- softened the tendency to rebel. Every 3 years of so when the kids were young we di...
by Dandy
Tue Nov 25, 2014 8:23 am
 
Forum: Personal Consumer Issues
Topic: What do you splurge on?
Replies: 150
Views: 9380

Re: How to Plan for an Unknown Future

Have a nice balance between saving for retirement and enjoying life now. I have always lived below my means and saved/invested for retirement. My goal was to gradually increase our standard of living, while still living below our means. We always had a nice family vacation but decided not to upgrade...
by Dandy
Mon Nov 24, 2014 9:54 am
 
Forum: Investing - Theory, News & General
Topic: How to Plan for an Unknown Future
Replies: 23
Views: 1849

Re: Saving Strategy For a Young Person?

In general I'm a big fan of people building nice nest egg in Roth while they are young and their earnings/tax bracket is favorable. Later when earnings/tax bracket is higher they might benefit from having some tax deductible contributions to a TIRA/401k. It is hard/impossible to predict future earni...
by Dandy
Mon Nov 24, 2014 8:55 am
 
Forum: Investing - Theory, News & General
Topic: Saving Strategy For a Young Person?
Replies: 17
Views: 1494

Re: Making money/career in Trading

My close friend is into trading. He has made lots and been busted to almost zero a couple of times. He is smart but a bit too smart as he keeps trusting his prowess. I feel he gets his excitement like a gambling high. last year he was very proud of making 25+% on his trading (of course The Total Sto...
by Dandy
Sun Nov 23, 2014 9:56 am
 
Forum: Investing - Theory, News & General
Topic: Making money/career in Trading
Replies: 25
Views: 2361

Re: Is investing more risky today today than before the inte

I think the internet is often very disruptive to businesses. Not a bad thing long term for society as there are many benefits. But businesses like, newspapers and retail stores have often been severely disrupted by internet options e.g. Dell. Even the internet based alternatives are often disrupted ...
by Dandy
Sun Nov 23, 2014 9:47 am
 
Forum: Investing - Theory, News & General
Topic: Is investing more risky today today than before the internet
Replies: 30
Views: 2829

Re: Apple Stock - Seems great, right?

A small amount will not make much difference either way. The "risk" is you get to fall in love with you stock picking prowess. Apple seems like a great company - great companies don't always mean great investments. Lot's of competition out there and sometimes you are only as good as your l...
by Dandy
Sun Nov 23, 2014 9:31 am
 
Forum: Investing - Theory, News & General
Topic: Apple Stock - Seems great, right?
Replies: 116
Views: 10920

Re: Social Security 62 vs 66

Pretty much any plan to take SS early and invest the difference to me is a poor bet. A very poor bet if you are the higher earner and married. There are always exceptions but I think they are rare. What tends to matter is if you have enough money to fund the wait. If not, then you really don't have ...
by Dandy
Sun Nov 23, 2014 9:25 am
 
Forum: Investing - Help with Personal Investments
Topic: Social Security 62 vs 66
Replies: 58
Views: 4993

Re: What would be the investing strategy for a coming crash?

If you set you equity risk level at 60% allocation what type of equity market did you envision. I'll bet most of us didn't even think of that question. I would guess that most of us assumed a normal equity market (whatever that is). Is holding 60% equities at a S&P 500 P/E of 16 the same risk wh...
by Dandy
Sat Nov 22, 2014 1:08 pm
 
Forum: Investing - Theory, News & General
Topic: What would be the investing strategy for a coming crash?
Replies: 81
Views: 6645

Re: What percent "Boglehead" are you?

Being a Boglehead is somewhat a loose definition. Some purists (no knock intended) might feel Mr. Bogle is not a Bogelhead because he does tactical allocations e.g. recently indicating that people should consider adding corporate bonds not just holding the Total bond fund. He is also not a fan of In...
by Dandy
Sat Nov 22, 2014 12:24 pm
 
Forum: Investing - Theory, News & General
Topic: What percent "Boglehead" are you?
Replies: 119
Views: 6252

Re: Home equity loan as an asset?

You appear to have enough assets when you include the house to last you through retirement. The question is when you to a handful of years worth of investments to draw down what is the plan? I guess the options are sell, use a reverse mortgage, or take out a home equity loan. I guess I would lean to...
by Dandy
Sat Nov 22, 2014 11:56 am
 
Forum: Investing - Help with Personal Investments
Topic: Home equity loan as an asset?
Replies: 26
Views: 1375

Re: "Are You an Irrational Investor? Here’s How to Tell"

Tops (and bottoms) are only visible in the rearview mirror. And it is those who invest in equities while the market is at or near it's peak that get criticized for investing at the top that they and everyone else only "sees" when looking back. We are part of the "small investor"...
by Dandy
Sat Nov 22, 2014 11:14 am
 
Forum: Investing - Theory, News & General
Topic: "Are You an Irrational Investor? Here’s How to Tell"
Replies: 13
Views: 1814

Re: "Are You an Irrational Investor? Here’s How to Tell"

This has nothing to do with lump summing vs. DCAing. From the article: First, the facts. Many studies show that a lot of investor money moves in and out of stock funds at the wrong time, often buying high and selling low. For example, at the height of the 2007 stock market bubble, investors were po...
by Dandy
Sat Nov 22, 2014 9:11 am
 
Forum: Investing - Theory, News & General
Topic: "Are You an Irrational Investor? Here’s How to Tell"
Replies: 13
Views: 1814

Re: Diversification among Bonds?

It is important to strive for simplicity Why? There are pros and cons if simplicity is the central focus. If simplicity is important to you then it is important. For many people having more than 1 fixed income product isn't that much of a burden -and offers some benefit. The mantra that you only ne...
by Dandy
Sat Nov 22, 2014 8:06 am
 
Forum: Investing - Theory, News & General
Topic: Diversification among Bonds?
Replies: 32
Views: 2880

Re: "Are You an Irrational Investor? Here’s How to Tell"

Interesting. Though the advice when people are concerned about a large lump sum to invest vs DCA or other plan to not investing the whole sum immediately,there is almost universal advice to just put all in at your target allocation no matter how richly valued the market might be. So that could accou...
by Dandy
Fri Nov 21, 2014 6:33 pm
 
Forum: Investing - Theory, News & General
Topic: "Are You an Irrational Investor? Here’s How to Tell"
Replies: 13
Views: 1814

Re: Diversification among Bonds?

Here's the deal -- because CDs are so incredibly safe, no risk/reward tradeoffs, then (A) there is a yield difference Y after which the retiree should go all-in in the CD. No Treasuries at all. The Y is very likely less than 1% because it's mostly about liquidity considerations and avoiding hassle, ...
by Dandy
Fri Nov 21, 2014 9:07 am
 
Forum: Investing - Theory, News & General
Topic: Diversification among Bonds?
Replies: 32
Views: 2880

Re: Diversification among Bonds?

There are some fairly entrenched thinking about fixed income and whether or not people will get any benefit from holding other than something like the Total Bond fund. (I'm not a fan of most individual bonds). You are probably unlikely to score major gains through moderate diversification of fixed i...
by Dandy
Wed Nov 19, 2014 4:37 pm
 
Forum: Investing - Theory, News & General
Topic: Diversification among Bonds?
Replies: 32
Views: 2880

Re: lock-up for 20 years [20 year CD]

Interesting question. I would answer yes if it was say only 25% of my IRA fixed income. The fact that you have to reinvest the interest is probably a benefit with the likelihood of interest rising before many of the 20 years have passed. That is about $10k/year or $200k in interest paid until maturi...
by Dandy
Wed Nov 19, 2014 9:55 am
 
Forum: Personal Finance (Not Investing)
Topic: lock-up for 20 years [20 year CD]
Replies: 21
Views: 2495

Re: Retiring within 6 months looking for some advice

Your allocation looks fine. I like adding a CD ladder as part of your fixed income allocation (maybe because I have one also?). I see my IRA CD ladder as the safe base of the portfolio which would be liquidated last. Therefore, I have been using VG brokerage CDs purchased easily and with no charge. ...
by Dandy
Wed Nov 19, 2014 9:25 am
 
Forum: Investing - Help with Personal Investments
Topic: Retiring within 6 months looking for some advice
Replies: 15
Views: 2938

Re: I may not make my retirement goals! What to do?

. But current market valuations should not change the OP'S need , ability and willingness to take risk In general I agree. But you really can't say valuations don't matter at all. But, if you are going to take valuations into account it can't be based on feelings. You need some objective measure(s)....
by Dandy
Wed Nov 19, 2014 9:17 am
 
Forum: Investing - Help with Personal Investments
Topic: I may not make my retirement goals! What to do?
Replies: 49
Views: 3374

Re: Diversification among Bonds?

I think bond diversification is often overlooked or unappreciated. I would broaden the discussion to include all fixed income e.g. CDs. It is true that for the most part a good diversified intermediate bond fund will do pretty well - it is kind of the sweet spot - decent yield and not too much durat...
by Dandy
Wed Nov 19, 2014 8:28 am
 
Forum: Investing - Theory, News & General
Topic: Diversification among Bonds?
Replies: 32
Views: 2880

Re: I may not make my retirement goals! What to do?

It is easy to say just do it - much harder when you have to change your plan. If it were me I would probably move to 30% soon and have a plan over the next 2 years of so to get equities up to 35%. Keep in mine when the market is down it isn't so easy to buy equities there is a tendency to not look a...
by Dandy
Wed Nov 19, 2014 7:48 am
 
Forum: Investing - Help with Personal Investments
Topic: I may not make my retirement goals! What to do?
Replies: 49
Views: 3374

Re: How Not to Retire

Wow the man can still write. He captured the dark fears we might imagine if we let our minds go there. I got a taste of this from my parents who lived through the Depression. People standing on the corner selling pencils that had doctorate degrees, the shabby look of the houses since painting was to...
by Dandy
Mon Nov 17, 2014 8:41 am
 
Forum: Personal Finance (Not Investing)
Topic: How Not to Retire
Replies: 67
Views: 6916

Re: VWINX (Wellesley Inc.)

Wellesley is a much loved fund. My favorite "active" fund. It is relatively low cost, not very active and has a great track record for a long term. It is not very diversified -- holding 60 stocks (vs 3700 + for the Total Stock market fund.)While not expensive at 25 bp Expense Ratio compare...
by Dandy
Mon Nov 17, 2014 7:34 am
 
Forum: Investing - Theory, News & General
Topic: VWINX (Wellesley Inc.)
Replies: 44
Views: 4939

Re: Want to add bonds to taxable account.

I use VG's Limited Term Tax Exempt
by Dandy
Sun Nov 16, 2014 2:31 pm
 
Forum: Investing - Help with Personal Investments
Topic: Want to add bonds to taxable account.
Replies: 25
Views: 1025

Re: "Safe" investment for a retired parent. CD?

VG offers very competitive 5 (2.3%), 7 (2.65%)and 10 yr (3.2%) CDs. It might be worth your while to call Vanguard for help if you are unsure on how to purchase their CDs. Brokerage CDs are different from CDs bought directly at a bank. Some differences: Brokerage CDs 1. No early redemption fee - if y...
by Dandy
Sun Nov 16, 2014 10:21 am
 
Forum: Investing - Theory, News & General
Topic: "Safe" investment for a retired parent. CD?
Replies: 12
Views: 1399

Re: is 3.20% Vanguard brokered CD best deal around?

My IRA 5 yr CD ladder was expanded to buy a VG 7 yr CD at 2.75% 10 yr CD at 3.3? a few months back. The CDs will be the last IRA money that I will use so I'm pretty sure that I won't need to sell before maturity. I'm a little leery of putting much more at 10 yr. When a CD rung comes due I might opt ...
by Dandy
Sun Nov 16, 2014 10:00 am
 
Forum: Investing - Help with Personal Investments
Topic: is 3.20% Vanguard brokered CD best deal around?
Replies: 48
Views: 4322

Re: Emergency fund question. please help

I would think through the emergencies you are guarding against, the odd of those emergencies and what resources you have. Most people in the accumulation stage have loss of job as the top emergency they are guarding against. Some analysis: 1. Does your spouse work? 2. Are you job(s) covered by unemp...
by Dandy
Sat Nov 15, 2014 1:49 pm
 
Forum: Investing - Help with Personal Investments
Topic: Emergency fund question. please help
Replies: 14
Views: 1900

Re: Speaking with an Aging Relative about care & money

Older, depression era seniors like safety. They are more trustful in banks and insurance companies then most. She may be too old for an annuity (and may not want to part with a large lump if she was eligible). That really leaves CDs and savings for the most part. A friend of mine had a mother in alm...
by Dandy
Sat Nov 15, 2014 9:57 am
 
Forum: Personal Finance (Not Investing)
Topic: Speaking with an Aging Relative about care & money
Replies: 24
Views: 2095

Re: $400 reward to open Chase accounts

$400 is a lot to turn down for an hour or so inconvenience.
Wife and I did that offer from Chase a few years ago. There were no gotchas. closed out the savings account but kept the credit cards. Always look at the details but for us it was not a problem.
by Dandy
Sat Nov 15, 2014 9:36 am
 
Forum: Personal Finance (Not Investing)
Topic: $400 reward to open Chase accounts
Replies: 41
Views: 10417

Re: letting profits run or sell...

What is your plan for these stocks? Do you have a dollar gain that you are looking for? I am not a stock trader. What I have heard is that to be somewhat successful you have to have a good reason to buy and a planned reason to sell. Otherwise you just watch the stock go up and down. A reason to sell...
by Dandy
Sat Nov 15, 2014 9:21 am
 
Forum: Investing - Theory, News & General
Topic: letting profits run or sell...
Replies: 34
Views: 2670

Re: For the next year or so, why shouldn't we be in all-cas

Usually, going 100% in anything is not a good idea. As has been noted, this coming interest rate rise has been coming for several years and is always just down the road. Some day in the near future? rates are bound to rise. When, how much and over what timeframe is very uncertain. Moving to 100% cas...
by Dandy
Sat Nov 15, 2014 8:27 am
 
Forum: Investing - Theory, News & General
Topic: For the next year or so, why shouldn't we be in all-cash?
Replies: 54
Views: 6985

Re: Why Not 100% Treasuries if your Risk is on the Equity Si

I'm not sure what the point of higher "income" for a balanced stock and bond investor with bonds most likely in a 401K or IRA would be. A person who wants to hold nothing but bonds and is locked in on equating interest paid on bonds with income to a cash flow account can do that if they w...
by Dandy
Sat Nov 15, 2014 5:30 am
 
Forum: Investing - Help with Personal Investments
Topic: Why Not 100% Treasuries if your Risk is on the Equity Side?
Replies: 40
Views: 3728

Re: Why Not 100% Treasuries if your Risk is on the Equity Si

Interesting chart. It may show that the "cost" (much lower income) of using 100% intermediate treasuries for panic protection might be too high. In the recent past the intermediate bonds and treasuries yields were competitive vs now. So, for me it speaks to some diversity on the fixed inco...
by Dandy
Fri Nov 14, 2014 4:52 pm
 
Forum: Investing - Help with Personal Investments
Topic: Why Not 100% Treasuries if your Risk is on the Equity Side?
Replies: 40
Views: 3728

Re: Kitces Sequence of Returns, Bucket Rebalancing

In general re balancing is a good strategy. Actually, having some liquid assets as part of your fixed income retiree allocation makes sense also. There is a quest for "rules" to follow under a wide range of situations. I just don't feel rules really can fit the bill totally. When people ta...
by Dandy
Fri Nov 14, 2014 9:14 am
 
Forum: Investing - Theory, News & General
Topic: Kitces Sequence of Returns, Bucket Rebalancing
Replies: 10
Views: 1525

Re: Why Not 100% Treasuries if your Risk is on the Equity Si

The underlying Treasury bond is safe from default. Don't confuse that with a Treasury Bond Mutual Fund. They are affected by interest rate changes just like other bond funds. They are great to have when there is a flight to quality but less so when the fright that caused the flight to quality passes...
by Dandy
Fri Nov 14, 2014 8:23 am
 
Forum: Investing - Help with Personal Investments
Topic: Why Not 100% Treasuries if your Risk is on the Equity Side?
Replies: 40
Views: 3728

Re: If your networth is over $3 million, how did you do it?

The USA isn't the only place that is usually lucky to be born in. But, not a bad place for most people when you consider some of the alternatives. Anyone sign up now for Syria? Iraq? Sierra Leone? or Europe, Japan during WWII? Where you are born is just plain Luck where you live can be a different s...
by Dandy
Wed Nov 12, 2014 12:38 pm
 
Forum: Personal Finance (Not Investing)
Topic: If your networth is over $3 million, how did you do it?
Replies: 260
Views: 27499

Re: If your networth is over $3 million, how did you do it?

I may have introduced Luck into the conversation. The OP wants to know the routes to a nice nest egg. My only point was that I think, for the most part, I did a lot of wise things to get a nice nest egg but luck played a major role. Life luck and investment luck. So, you can do all the right things ...
by Dandy
Wed Nov 12, 2014 10:49 am
 
Forum: Personal Finance (Not Investing)
Topic: If your networth is over $3 million, how did you do it?
Replies: 260
Views: 27499

Re: If your networth is over $3 million, how did you do it?

People often forget how lucky they are. I was born in the USA and had 2 loving parents, lived in a nice house in the safe suburbs, my dad and mom were hard workers that set a good example, they spent money wisely, had their health, had employment until retirement, paid for their children's education...
by Dandy
Wed Nov 12, 2014 9:57 am
 
Forum: Personal Finance (Not Investing)
Topic: If your networth is over $3 million, how did you do it?
Replies: 260
Views: 27499

Re: Assisted Living

I still live in my home for 40 years. I applaud you for making the move before you had to. It is so hard to make those major decisions. There is a tendency to drift until you are forced to decide - usually a bad situation. If you make these decisions before you have to you new environment becomes &q...
by Dandy
Wed Nov 12, 2014 8:11 am
 
Forum: Personal Finance (Not Investing)
Topic: Assisted Living
Replies: 24
Views: 1977

Re: If your networth is over $3 million, how did you do it?

Not at that level but in the ball park. 1. Lived below our means from the start - guess it was my nature 2. Started off with putting $ in Stable Value Fund and built a nice base (SV was paying 10%+ at the start!!) 3. Started investing in equity MFs in early 80's 4. Read 4 Pillars and Boglehead Guide...
by Dandy
Wed Nov 12, 2014 8:06 am
 
Forum: Personal Finance (Not Investing)
Topic: If your networth is over $3 million, how did you do it?
Replies: 260
Views: 27499

Re: EE savings bonds for retirement

You seem to understand the pros and cons (don't forget interest is not subject to state taxes). 20 years is a long time and inflation is a real risk. I wouldn't make this my only approach but for some of your longer term money - why not.
by Dandy
Wed Nov 12, 2014 7:46 am
 
Forum: Investing - Help with Personal Investments
Topic: EE savings bonds for retirement
Replies: 31
Views: 2160

Re: How can I convince my wife to accept investing??

Tough situation. She isn't going to listen to you. So, as I see it there are two choices: 1. Say lets discuss how to save/invest our money with a fee only financial planner. Maybe a 3rd party would have a better chance of helping you both reach an acceptable solution -- and it wouldn't be a win/lose...
by Dandy
Wed Nov 12, 2014 7:38 am
 
Forum: Investing - Help with Personal Investments
Topic: How can I convince my wife to accept investing??
Replies: 54
Views: 4622

Re: Retiring Parents Set in Risky Ways

We are assuming their retirement is at risk if the stock went to zero Not me that is why I started the quoted sentence with IF. [color=#BF0000]If your parents put their retirement at extreme risk and lose -- most children would feel a obligation to provide significant help if they can. [/color] I'm...
by Dandy
Tue Nov 11, 2014 4:05 pm
 
Forum: Investing - Help with Personal Investments
Topic: Retiring Parents Set in Risky Ways
Replies: 46
Views: 4341

Re: Retiring Parents Set in Risky Ways

It is hard to tell if and if so how much to try to guide adult/independent family members. Of course you can always be totally hands off. But parents and children aren't like friends and neighbors. If your friend messes up his health or finances you have little moral obligation to rescue them. If yo...
by Dandy
Tue Nov 11, 2014 12:57 pm
 
Forum: Investing - Help with Personal Investments
Topic: Retiring Parents Set in Risky Ways
Replies: 46
Views: 4341

Re: For the next year or so, why shouldn't we be in all-cas

extreme moves don't usually work out well. People could have made the same argument several years ago since interest rates were bound to go up. I have no idea when the rates will go up. I have 1/3 intermediate, 1/3 short term and 1/3 no loss of principal e.g. CDs. I intend to maintain roughly that. ...
by Dandy
Tue Nov 11, 2014 9:14 am
 
Forum: Investing - Theory, News & General
Topic: For the next year or so, why shouldn't we be in all-cash?
Replies: 54
Views: 6985
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