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Re: Investing Questions and Review

Dandy, we feel like we are finally able to breath a bit

Ahh! enjoy the fresh air and the compounding! Both are great.
by Dandy
Wed Mar 04, 2015 5:25 pm
 
Forum: Investing - Help with Personal Investments
Topic: Investing Questions and Review
Replies: 7
Views: 464

Re: ...it is madness to risk losing what you need in pursuin

I like Warren and Bill's philosophy. It had the same smack in the face simplicity. Retirement is so different than working. Working the goal is to get enough to retire and that can mean taking some aggressive equity allocations, especially early on. As you approach or are in retirement and you have ...
by Dandy
Wed Mar 04, 2015 9:41 am
 
Forum: Investing - Theory, News & General
Topic: ...it is madness to risk losing what you need in pursuing wh
Replies: 43
Views: 3742

Re: Poll: Increasing international equities

I'm not blindly staying the course. I think International is a bit undervalued compared with the US market. I'm not a big fan of International equities - allocate about 11% of my portfolio to them. I''m 67 and will gradually reduce my equities a bit and would rather reduce International than total S...
by Dandy
Wed Mar 04, 2015 9:08 am
 
Forum: Investing - Theory, News & General
Topic: Poll: Increasing international equities
Replies: 46
Views: 2155

Re: Investing Questions and Review

Seems like you are in great shape and have high earnings. But you seems to be in a hurry as far as investing - you do have plenty of time to reach a nice retirement goal. What goal do you have? $2 million? $5 million. I think 90% equities is too high for almost anyone - despite what Vanguard has in ...
by Dandy
Wed Mar 04, 2015 9:00 am
 
Forum: Investing - Help with Personal Investments
Topic: Investing Questions and Review
Replies: 7
Views: 464

Re: 5 fund allocation advice

the new philosophy is to have 120-(your age) in stocks, I guess that is someone's new philosophy but doesn't have to be yours - not at all written in stone. The reasonable starting point is age in bonds - adjust that for your ability and need to take risk. You may end up with 120-age in stocks but ...
by Dandy
Wed Mar 04, 2015 8:37 am
 
Forum: Investing - Help with Personal Investments
Topic: 5 fund allocation advice
Replies: 6
Views: 705

Re: Personal Annualized Rate of Return

The thrill of researching stocks, picking the time to buy and sell, the joy of being right and even the frustration of being wrong -- is exciting. You're a player and up more than your are down. It can be fun, strokes the ego and sometimes makes you humble. You're in the game. Actually, the game you...
by Dandy
Wed Mar 04, 2015 8:25 am
 
Forum: Investing - Help with Personal Investments
Topic: Personal Annualized Rate of Return
Replies: 5
Views: 629

Re: Holdings that shouldn't be in taxable, but now have gain

I'd keep Total Stock Market and gift the International bond assets. Why incur cap gains on something that is quite tax efficient to begin with. If you don't like bonds in you advantaged space use more intermediate CDs. Look into Tax Managed Balanced fund for taxable. Or just have some intermediate m...
by Dandy
Wed Mar 04, 2015 8:16 am
 
Forum: Investing - Help with Personal Investments
Topic: Holdings that shouldn't be in taxable, but now have gains
Replies: 5
Views: 662

Re: Trapped!!!! 401k plan question

Insurance companies often use their own in house "variable accounts" instead of listed mutual funds. These accounts often also support their variable annuity business. They don't have ticker symbols because they are not set up for public trading. Even their index funds are usually more exp...
by Dandy
Wed Mar 04, 2015 8:07 am
 
Forum: Investing - Help with Personal Investments
Topic: Trapped!!!! 401k plan question
Replies: 6
Views: 713

Re: What if you already have a couple million?

I would become a moderate risk investor say 50 or 60% in equities until say 5 years from retirement. Then I would project what funding I would need each year to supplement my retirement income each year and put 20-25 times that in "safe" investments (e.g. CD ladder, short term bonds/funds,...
by Dandy
Tue Mar 03, 2015 1:00 pm
 
Forum: Investing - Help with Personal Investments
Topic: What if you already have a couple million?
Replies: 42
Views: 6078

Re: Have I made a terrible mistake? - whole life

Yeah - 10k per year for 750k coverage isn't a good deal unless there are very unusual circumstances e.g. maybe key man insurance. Whole life is expensive and the cash value and loan provisions don't really make up for that. Whole life insurance for the amount of insurance you want to keep forever ca...
by Dandy
Tue Mar 03, 2015 8:12 am
 
Forum: Personal Finance (Not Investing)
Topic: Have I made a terrible mistake? - whole life
Replies: 52
Views: 5996

Re: where to put excess cash

I'd look into VG Tax Managed Balanced Fund. Also, focus on any things that might upset your nice financial position. e.g. disability, health, job loss, etc. So, good insurance, safe/reliable cars, investing in upgrading your skills, etc. I'd also think more about whether or not you want to buy a hou...
by Dandy
Mon Mar 02, 2015 7:55 am
 
Forum: Investing - Help with Personal Investments
Topic: where to put excess cash
Replies: 18
Views: 2903

Re: Dividends + LT/ST Capitol Gains for retiree (GES)

No problem with your approach - tax avoidance is important but can be over done. If you are in the 25% tax bracket you may want to tax manage to avoid going to the next bracket. I have VG withhold taxes on my divs and cap gains so I don't have a surprise tax bill. Not a great strategy if Prime was p...
by Dandy
Mon Mar 02, 2015 7:38 am
 
Forum: Investing - Help with Personal Investments
Topic: Dividends + LT/ST Capitol Gains for retiree (GES)
Replies: 11
Views: 599

Re: tweaking asset allocation

I'd look into some CDs -- some of the rates offered for 5 yrs and longer are not bad. All will be impacted by rising rates. But, bank CDs offer a way to get out by paying a penalty if the rate rise is steep. FDIC isn't a bad thing either. When they mature or if you redeem early because of rising rat...
by Dandy
Mon Mar 02, 2015 7:26 am
 
Forum: Investing - Help with Personal Investments
Topic: tweaking asset allocation
Replies: 3
Views: 323

Re: What's your average ER?

A decent portion of my fixed income is in CDs and EE bonds and savings accounts. They aren't required to show the expensesprofits that are taken from the yield. I'm sure if I saw what my CDs were invested in and what the bank takes off the top I'd be angry. Given that my estimate is about .06%
by Dandy
Mon Mar 02, 2015 7:19 am
 
Forum: Investing - Theory, News & General
Topic: What's your average ER? [Expense Ratio]
Replies: 102
Views: 4580

Re: Fund for 50+ years???

Holding something 50 year is a big stretch. I would opt for balanced fund. Vg doesn't seem to mess with that fund as it does with Target Date and Life Strategy Funds - so maybe what you are buying at low cost will stay the same. No international, no TIPS etc so if that is needed/wanted you need to u...
by Dandy
Sun Mar 01, 2015 1:36 pm
 
Forum: Investing - Help with Personal Investments
Topic: Fund for 50+ years???
Replies: 6
Views: 510

Re: Do you consider mortgage payments as savings?

No. you can't spend your mortgage payments that you have made. Yes a portion of your payment goes to principal reduction but initially that is a very small portion of your mortgage payment. Do you offset these "savings" with home related taxes, insurance, maintenance? Why play games with r...
by Dandy
Sat Feb 28, 2015 7:37 am
 
Forum: Personal Finance (Not Investing)
Topic: Do you consider mortgage payments as savings?
Replies: 291
Views: 11158

Re: Safe Withdrawal Rate as it relates to Size of Portfolio

Safe can be viewed in at least 2 ways. 1. is this withdrawal rate going to last my lifetime. e.g. At this rate assuming x growth in expenses and y growth in investments what is the percentage of times I will have enough money to fund my retirement for 30 years. 2. How much of the withdrawal amount d...
by Dandy
Sat Feb 28, 2015 7:26 am
 
Forum: Investing - Theory, News & General
Topic: Safe Withdrawal Rate as it relates to Size of Portfolio
Replies: 25
Views: 2580

Re: Not "Staying the Course"

Too many course corrections tend to devolve into a messy market timing situation. Some times to consider altering course a bit: 1. When markets, inflation and interest rates are at extremes could prompt those near or in retirement to rethink their allocations somewhat. 2. When you have more than eno...
by Dandy
Fri Feb 27, 2015 6:14 pm
 
Forum: Investing - Theory, News & General
Topic: Not "Staying the Course"
Replies: 40
Views: 4659

Re: Thoughts on Chase for everyday banking

I use BoA they bought out a smaller bank and have no fee checking and a HELOC currently at 2.74% - no problems. I had a Chase account (to get the $250? bonus) awhile ago and had no problems got extra bonus for opening credit cards and have been satisfied with their cash back feature/service. So whil...
by Dandy
Fri Feb 27, 2015 9:41 am
 
Forum: Personal Finance (Not Investing)
Topic: Thoughts on Chase for everyday banking
Replies: 28
Views: 1892

Re: NYT: "As Hedge Fund Returns Falter,..."

As I understand it usually a 2% yearly fee, 20% of the profits (losses on you) and restrictions on redemptions. Spare me. When big, risky bets do well a compensation bonanza when they don't oh well 2% anyhow. A few good years and the fund manager has made enough for several lifetimes. A few bad year...
by Dandy
Fri Feb 27, 2015 9:05 am
 
Forum: Investing - Theory, News & General
Topic: NYT: "As Hedge Fund Returns Falter,..."
Replies: 21
Views: 1469

Re: Vanguard Strikes Back With Lower Target-Date Fees

Not sure what impact, if any, it will have on non institutional funds. But, clear and ongoing signal that while these type of allocation changes are not frequent they are not rare with Vanguard either. So, if you think you can buy a life Strategy or Target date fund and set it and forget it - you ma...
by Dandy
Thu Feb 26, 2015 8:42 pm
 
Forum: Investing - Theory, News & General
Topic: Vanguard Strikes Back With Lower Target-Date Fees
Replies: 13
Views: 3824

Re: Immediate Pension Benefit Offering

I generally favor the annuity if age, health and longevity genes are good. Also, if the company seems healthy. People sometimes get dazzled by the size of the lump sum since it is often more money in one lump that they ever could get their hands on. I waited 8 years for one pension and 5 years for a...
by Dandy
Thu Feb 26, 2015 9:27 am
 
Forum: Investing - Help with Personal Investments
Topic: Immediate Pension Benefit Offering
Replies: 8
Views: 1051

Re: Dollar Cost Averaging vrs lumpsum investment

In general it has been that lump sum works better most of the time. I haven't seen any studies that show what happens when equity markets are at or near record levels. Or for that matter when interest rates are at or near record lows. Or further still when both are in record territory. I would DCA 5...
by Dandy
Wed Feb 25, 2015 7:53 am
 
Forum: Investing - Help with Personal Investments
Topic: Dollar Cost Averaging vrs lumpsum investment
Replies: 11
Views: 760

Re: Rebalancing vs. Timing the market

Don't worry about what it is called understand what the pros and cons are. I think when most people set up their allocation the feel they can handle a 10 to 20% drop but not the 40 to 50% drop over a number of years. If you are in the accumulation stage your retirement account has many years to reco...
by Dandy
Tue Feb 24, 2015 11:35 am
 
Forum: Investing - Theory, News & General
Topic: Rebalancing vs. Timing the market
Replies: 23
Views: 833

Re: Best Bond Diversifier

A lot depends on what your new target allocation will be. Say 90% equities? then consider intermediate or short term Treasury funds - When the stock market plunges Treasuries are a great place to be - usually. A more modest equity allocation Total bond fund might be a better all around choice. Some ...
by Dandy
Tue Feb 24, 2015 10:47 am
 
Forum: Investing - Help with Personal Investments
Topic: Best Bond Diversifier
Replies: 16
Views: 2858

Re: How much has Bogleheads contributed to your net worth?

Aggressive saving and living below our means was key to get a nice size nest egg by my late 40's then it was Bogle and especially Wm Bernstein's 4 Pillars of Investing that got me to be investing like a Boglehead. That came at a time of peak earnings so it really made a difference. So, lots of thing...
by Dandy
Mon Feb 23, 2015 2:05 pm
 
Forum: Personal Finance (Not Investing)
Topic: How much has Bogleheads contributed to your net worth?
Replies: 58
Views: 4119

Re: Yes, another Pension / Lump Sum dilemma !

If you take the IRA option you will be forced to take increasingly large RMDs that you probably won't need. Use a RMD calculator to see if this is an issue. I also like the predictable steady stream of income. No worries about managing that extra investment, taking RMDs etc. Taking RMD's needn't be...
by Dandy
Mon Feb 23, 2015 11:45 am
 
Forum: Investing - Help with Personal Investments
Topic: Yes, another Pension / Lump Sum dilemma !
Replies: 15
Views: 1276

Re: Yes, another Pension / Lump Sum dilemma !

The good news is that you are in great shape so either decision won't be a big deal. I guess I lean toward taking the pension. If you take the IRA option you will be forced to take increasingly large RMDs that you probably won't need. Use a RMD calculator to see if this is an issue. I also like the ...
by Dandy
Mon Feb 23, 2015 7:48 am
 
Forum: Investing - Help with Personal Investments
Topic: Yes, another Pension / Lump Sum dilemma !
Replies: 15
Views: 1276

Re: Expense Ratio Regarding my Vanguard Prime Money Market F

Mutual fund money markets used to pay much higher than most bank savings or bank money market deposit accounts. That is currently not the case. New rules for mutual fund money markets require shorter average maturity and much higher restrictions on the quality of the investments they make. This was ...
by Dandy
Sun Feb 22, 2015 6:34 am
 
Forum: Investing - Help with Personal Investments
Topic: Expense Ratio Regarding my Vanguard Prime Money Market Fund
Replies: 12
Views: 1117

Re: AA: Keep constant regardless of state of market?

Your 90% equity allocation might be the real market timing decision. I feel 90% is too high for almost anyone so I would advocate a less aggressive allocation no matter what the state of the market. A lot depends on age and where you stand vs retirement. If you are early in the accumulation stage yo...
by Dandy
Sun Feb 22, 2015 6:27 am
 
Forum: Investing - Help with Personal Investments
Topic: AA: Keep constant regardless of state of market?
Replies: 10
Views: 931

Re: [What to do at] Market Top

Pretty much standing pat. Not happy that equities are at or near highs and fixed income yields are at or near lows. I diversified my fixed income a year or two ago - adding some shorter duration, some additional corporate exposure and some CDs.
by Dandy
Sat Feb 21, 2015 6:50 pm
 
Forum: Investing - Theory, News & General
Topic: [What to do at] Market Top
Replies: 57
Views: 4933

Re: Why don't I see more people arguing for a world portfoli

In addition to being in the US and paying for everything is US dollars I have some doubt about how well regulations, accounting practices, etc are implemented in other countries. Also, I must admit a lot of home town bias. We supposedly have a lot of regulation and control and still have frauds, sha...
by Dandy
Sat Feb 21, 2015 6:44 pm
 
Forum: Investing - Help with Personal Investments
Topic: Why don't I see more people arguing for a world portfolio?
Replies: 41
Views: 2830

Re: Risk of Rebalancing

Your equity stake should be exactly what you can afford to lose, and somewhat less than that if you want to add the risk of rebalancing. I agree. the point for retirees to keep in mind that they usually don't have the earning power they had in the accumulation stage or the match to their 401k. So, ...
by Dandy
Sat Feb 21, 2015 8:27 am
 
Forum: Investing - Theory, News & General
Topic: Risk of Rebalancing
Replies: 63
Views: 3742

Re: Risk of Rebalancing

In or near retirement maybe a slightly different approach to rebalancing should be considered . Assume you are in the drawdown phase and have zero earning capacity. When the equity market plunges should you fully rebalance out of safer fixed income into equities and also drawdown from those same fi...
by Dandy
Fri Feb 20, 2015 11:18 am
 
Forum: Investing - Theory, News & General
Topic: Risk of Rebalancing
Replies: 63
Views: 3742

Re: Risk of Rebalancing

The professor doesn't mention the risk of not rebalancing. There is risk of a better outcome anytime you make or decide not to make a move. So, if a 60/40 portfolio goes to 80/20 because you don't rebalance - there is no increased risk? Sure, if I fully rebalance I "risk" the gain of it go...
by Dandy
Fri Feb 20, 2015 9:27 am
 
Forum: Investing - Theory, News & General
Topic: Risk of Rebalancing
Replies: 63
Views: 3742

Re: Will LS Fund Take Big Hit if Interst Rate Rise

So the "generous bull market" caused your returns to be almost seven times smaller Unless you are 100% stocks your portfolio benefits from having a "bull" market in fixed income -- even if it is a lot smaller. The point is that most investors in the past few decades had both seg...
by Dandy
Thu Feb 19, 2015 3:12 pm
 
Forum: Investing - Theory, News & General
Topic: Will LS Fund Take Big Hit if Interst Rate Rise
Replies: 13
Views: 1070

Re: How best to use gifted 25k. . .

While Roth IRAs are usually thought of having tax free withdrawals there are certain situations where a fee or penalty on withdrawals might apply. Check out the rules before you invest. Roths weren't created to be short term savings or short term emergency funds even though in many cases they can be.
by Dandy
Thu Feb 19, 2015 10:30 am
 
Forum: Personal Finance (Not Investing)
Topic: How best to use gifted 25k. . .
Replies: 25
Views: 1862

Re: How best to use gifted 25k. . .

I would do something fun with some of the money e.g. a weekend away? The rest I'd keep rather liquid. Your emergency fund is a bit low and children can be much more expensive than you think (and very worth it). Car seats, diapers, day care let me count the ways. having some extra cash around will re...
by Dandy
Thu Feb 19, 2015 8:46 am
 
Forum: Personal Finance (Not Investing)
Topic: How best to use gifted 25k. . .
Replies: 25
Views: 1862

Re: Will LS Fund Take Big Hit if Interst Rate Rise

A lot depends on your term and temperament. I assume you are investing for the long term. If so, rising interest rates will cause some drop in your fund's fixed income allocation. But, as has been point out the fund's bond portion will eventually right itself as old bonds reach maturity and new, hig...
by Dandy
Thu Feb 19, 2015 8:32 am
 
Forum: Investing - Theory, News & General
Topic: Will LS Fund Take Big Hit if Interst Rate Rise
Replies: 13
Views: 1070

Re: Cap Gains & Divs killed me this year

We all love the gains but wince at the taxes. When the market corrects we will be moaning about the lack of capital gains - there is no happy place :D I'm retired and have my taxable divs and cap gains sent to MMkt. I also have withholding on them so there are no surprises at tax time. This approach...
by Dandy
Thu Feb 19, 2015 8:11 am
 
Forum: Investing - Theory, News & General
Topic: Cap Gains & Divs killed me this year
Replies: 61
Views: 5906

Re: Investing for Retirement

I'm not a fan of very high equity allocations for those new to investing. I like the idea of having some Roth and some not Roth. Beware of having a lot of company stock. If it is in a 401k make sure you can exchange from company stock to other 401k investments. If the company stock is outside of the...
by Dandy
Thu Feb 19, 2015 7:58 am
 
Forum: Investing - Help with Personal Investments
Topic: Investing for Retirement
Replies: 7
Views: 912

Re: Should I switch to the 3 fund portfolio?

Those are the fund names at Vanguard - they have a series of these funds with different allocations. Which is the right one for you depends on your need and ability to take risk. Without knowing your financial position etc. it is not for us to say what is the correct allocation for you without more ...
by Dandy
Wed Feb 18, 2015 10:21 pm
 
Forum: Investing - Help with Personal Investments
Topic: Should I switch to the 3 fund portfolio?
Replies: 23
Views: 3157

Re: Should I switch to the 3 fund portfolio?

The 3 fund portfolio is fairly simple and fairly well diversified. It is not set it and forget it. You should consider some rebalancing to control/maintain your risk. Balanced funds, especially Life Strategy and Target Date funds are almost set it and forget it and very simple. The concerns would be...
by Dandy
Wed Feb 18, 2015 11:31 am
 
Forum: Investing - Help with Personal Investments
Topic: Should I switch to the 3 fund portfolio?
Replies: 23
Views: 3157

Re: Looking For Fixed Income Advice -CDs Are Maturing

It sounds as if you don't really need this money - at least for a long while. If the CDs are in your retirement account you just want to make sure the RMDs (when required) won't cause you to have to early redeem a CD. Any move to a bond fund has some risk due to the potential rising interest rates. ...
by Dandy
Wed Feb 18, 2015 11:22 am
 
Forum: Investing - Help with Personal Investments
Topic: Looking For Fixed Income Advice -CDs Are Maturing
Replies: 2
Views: 294

Re: Gifts to children

Interesting. My parents really couldn't help much. I paid for most of college and most of grad school was paid by my employer (does that still exist?). My in-laws gave us some money for a down payment which I paid back within 5 years over their objections. But the helped out in other ways e.g. home ...
by Dandy
Mon Feb 16, 2015 11:41 pm
 
Forum: Personal Finance (Not Investing)
Topic: Gifts to children
Replies: 30
Views: 2251

Re: Expecting a big inheritance - Should it change my life?

Maybe a little. My friend's father lived to 99 and another's grandma lived to 106. How long has Fidel and the Queen of England been around. You all should probably see an elder and/or estate attorney. I don't like to count my chickens before they hatch - though it is temping. One key is to make sure...
by Dandy
Mon Feb 16, 2015 2:00 pm
 
Forum: Personal Finance (Not Investing)
Topic: Expecting a big inheritance - Should it change my life?
Replies: 124
Views: 7903

Re: Gifts to children

with the realization that the parental income stream ends at graduation . Nice goal. But be prepared. We were fortunate to have both daughters graduate college with no debt for them or us. With my older daughter and her husband both working having a modest house and two children they barely make en...
by Dandy
Mon Feb 16, 2015 1:54 pm
 
Forum: Personal Finance (Not Investing)
Topic: Gifts to children
Replies: 30
Views: 2251

Re: Gifts to children

I help our daughter with her Roth contribution each year and now added some grad school help. I'm thinking of using my HELOC at 2.74% tax deductible rather than have her take a loan or use a credit card, even short term, to pay the grad school. I don't know I'd do it for 50k. I would rather have him...
by Dandy
Mon Feb 16, 2015 12:20 pm
 
Forum: Personal Finance (Not Investing)
Topic: Gifts to children
Replies: 30
Views: 2251

Re: Improving the Lifestrategy Funds

Substitute a short term bond fund and/or TIPS fund for the international bond fund -and then leave it alone
by Dandy
Mon Feb 16, 2015 12:09 pm
 
Forum: Investing - Theory, News & General
Topic: Improving the Lifestrategy Funds
Replies: 29
Views: 2523

Re: 5-year CD ladder versus One 5-year CD

What do you plan to do with the money and when? If you want to have an ongoing ladder of CDs and keep that going for years - then you have to start sometime. Either buy a 5 year now and put the rest in a "high" yield savings and then buy another 5 yr each year until the ladder is complete....
by Dandy
Mon Feb 16, 2015 12:06 pm
 
Forum: Investing - Help with Personal Investments
Topic: 5-year CD ladder versus One 5-year CD
Replies: 9
Views: 1003
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