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Re: 4% Guaranteed Interest Option in 403(b)?

Makes sense to use this option as part of a diversified fixed income allocation. I would not put 100% in this or almost any investment/savings product.
by Dandy
Tue Sep 30, 2014 9:51 am
 
Forum: Investing - Help with Personal Investments
Topic: 4% Guaranteed Interest Option in 403(b)?
Replies: 4
Views: 467

Re: Disappointed in Vanguard customer service

I managed 2 different mutual fund call centers. It is not an easy job. Mistakes happen and a real test of service is how the response is when they make a mistake. Apologize and correct it quickly gives you some trust that whatever firm you deal with whether it is a mutual fund or Amazon you can rela...
by Dandy
Tue Sep 30, 2014 12:16 am
 
Forum: Investing - Theory, News & General
Topic: Disappointed in Vanguard customer service
Replies: 32
Views: 3425

Re: What is your rebalancing policy?

"Rebalancing only allowed in the last two weeks of December, the first two weeks of January, and the first two weeks of July." Too loosey goosey? What is the purpose of your rebalancing? To control risk? usually that is the main goal. Equities are usually the riskiest part of the allocati...
by Dandy
Mon Sep 29, 2014 11:45 pm
 
Forum: Investing - Help with Personal Investments
Topic: What is your rebalancing policy?
Replies: 63
Views: 5829

Re: POLL: When I gift/will shares to my relatives, I expect

When my daughters were around college age our gifts were targeted to help them fund their IRAs. Once they matured and the investing seed had taken hold the gifts had no stings. I know gifts from their late grandma had/have special meaning but I hope our gifts are used to fill current or future needs...
by Dandy
Mon Sep 29, 2014 8:58 am
 
Forum: Personal Finance (Not Investing)
Topic: POLL: When I gift/will shares to my relatives, I expect ...
Replies: 13
Views: 939

Re: Chartway offers 2.5% 5-year CD, only 90 day penalty!

Nice rate and great penalty terms. Something to consider. Make sure to read the disclosures,
by Dandy
Mon Sep 29, 2014 8:44 am
 
Forum: Investing - Theory, News & General
Topic: Chartway offers 2.5% 5-year CD [with uncertain terms]
Replies: 12
Views: 2119

Re: R u selling PIMCO bond fund

I wouldn't own it. While it is getting smaller by the day it is gigantic. When the portfolio manager(s) have to deal with such a large portfolio they either become an expensive closet index fund or have to take outsized positions/risks. Add to that its asset drain and I'm out. Truthfully, I was out ...
by Dandy
Mon Sep 29, 2014 8:40 am
 
Forum: Investing - Help with Personal Investments
Topic: R u selling PIMCO bond fund
Replies: 16
Views: 1429

Re: Prudent to tilt away from bonds?

the big risk control factor is your allocation to equities. With 15 years to retirement you should be fine with a good short or intermediate bond fund. I'm not too fussy about the sub allocations to fixed income. Some Intermediate, some short, some tips and if CDs are ok by you they are ok by me. I ...
by Dandy
Sun Sep 28, 2014 5:35 pm
 
Forum: Investing - Help with Personal Investments
Topic: Prudent to tilt away from bonds?
Replies: 4
Views: 505

Re: What's Your Takeaway from 2014 High Valuation

People worry too much about ideological purity. I agree. The basic Boglehead principles are great. e.g. invest in low cost well diversified index funds, Have a written IPS, Stay the Course, simplicity, rebalance and don't try to time the market, live below your means, etc. You need to be careful if...
by Dandy
Sun Sep 28, 2014 10:24 am
 
Forum: Investing - Theory, News & General
Topic: What's Your Takeaway from 2014 High Valuation
Replies: 52
Views: 4028

Re: What's Your Takeaway from 2014 High Valuation

There's no difference between market timing by selling and market timing by not buying. That is mathematically correct. There is a world of difference between an investor who fears the market is too high and sells out in a panic vs an investor who doesn't sell any equities but doesn't buy more. It ...
by Dandy
Sat Sep 27, 2014 11:45 pm
 
Forum: Investing - Theory, News & General
Topic: What's Your Takeaway from 2014 High Valuation
Replies: 52
Views: 4028

Re: What's Your Takeaway from 2014 High Valuation

Had you gotten out of the market after 36 months, you would have missed out 60% of the bull market that ended in 1929. You would have also missed out on 75% of the bull markets that ended in 1961, 1987, and 2000. Who said anything about getting out of the market ? The discussion was adding to equit...
by Dandy
Sat Sep 27, 2014 6:11 pm
 
Forum: Investing - Theory, News & General
Topic: What's Your Takeaway from 2014 High Valuation
Replies: 52
Views: 4028

Re: rebalancing conundrum/paradox/irony

I would argue that this is a bad analogy. Reasonable point - all analogies are imperfect. If you didn't anticipate in your IPS having to buy equities when they are high - you may have to re think your IPS. Do some soul searching before you revise your IPS - you don't want to change it too frequentl...
by Dandy
Sat Sep 27, 2014 12:02 pm
 
Forum: Investing - Theory, News & General
Topic: rebalancing conundrum/paradox/irony
Replies: 69
Views: 3607

Re: How to buy brokered CDs in Vanguard IRA?

I would assume so since CDs are sold by the brokerage unit. In taxable there are slightly better 5 yr CD rates directly with some banks. VG offers better deals than most on 7 and 10 yr CDs and lower than directly with banks below 5 years.
by Dandy
Sat Sep 27, 2014 11:32 am
 
Forum: Investing - Help with Personal Investments
Topic: How to buy brokered CDs in Vanguard IRA?
Replies: 4
Views: 518

Re: What's Your Takeaway from 2014 High Valuation

How do you define 'high valuations'? Smells like market timing to me... I define high as market at or near historic highs and/or when the bull has run for 3 or 4 years in a row. Not feeling it is high or smelling that it is high or because Cramer says it is high. If you want to call that market tim...
by Dandy
Sat Sep 27, 2014 11:29 am
 
Forum: Investing - Theory, News & General
Topic: What's Your Takeaway from 2014 High Valuation
Replies: 52
Views: 4028

Re: What's Your Takeaway from 2014 High Valuation

In general stay the course is a good idea. But - what is your specific situation? and what is your course? I'm 66 and in good shape for fully funding my retirement. Earning power is near zero. Hoping to collect SS in 4 years. My position is vastly different from 15 years ago when I was in the accumu...
by Dandy
Sat Sep 27, 2014 9:30 am
 
Forum: Investing - Theory, News & General
Topic: What's Your Takeaway from 2014 High Valuation
Replies: 52
Views: 4028

Re: rebalancing conundrum/paradox/irony

That is what happens when a well thought out IPS meets the reality down the road. If the IPS wasn't well thought out you need a new IPS. Buying stocks when the market is at or near historic highs is counter intuitive. It is logical to trim stocks when they are "high" but is it letting your...
by Dandy
Sat Sep 27, 2014 9:05 am
 
Forum: Investing - Theory, News & General
Topic: rebalancing conundrum/paradox/irony
Replies: 69
Views: 3607

Re: What's wrong with leverage?

There are many good answers to review. My view is leverage is great when it works and horrible when it doesn't. It seems to be best used by very sophisticated investors in a limited way. There are too many people who consider themselves sophisticated investors and those investors tend to over use le...
by Dandy
Sat Sep 27, 2014 8:01 am
 
Forum: Investing - Theory, News & General
Topic: What's wrong with leverage?
Replies: 15
Views: 1087

Re: How to buy brokered CDs in Vanguard IRA?

Assuming you have a vg brokerage account 1. sign on 2. There is a gray bar near the top and the last choice is "buy & sell" 3. Click on buy and sell and to the right is a list of Brokerage Products 4. Click on trade bonds or CDs 5. It will then display the different accts you own e.g. ...
by Dandy
Sat Sep 27, 2014 7:56 am
 
Forum: Investing - Help with Personal Investments
Topic: How to buy brokered CDs in Vanguard IRA?
Replies: 4
Views: 518

Re: Why not 100% CD's?

I'm a fan of using a CD ladder as a decent part of my retiree fixed income allocation. I would not advocate 100% or even near 100% allocation to CDs. But 20 to 25% seems good to me as a early retiree with about a 60% fixed income allocation. But I also have allocations to TIPS and short and intermed...
by Dandy
Fri Sep 26, 2014 4:53 pm
 
Forum: Investing - Help with Personal Investments
Topic: Why not 100% CD's?
Replies: 73
Views: 4922

Re: My IPS and rebalancing

I tend to use my rebalancing limits as a guide to a goal rather than an immediate signal to shift large sums of money. (I hate shifting large sums of money). I also put much more emphasis on the equity vs fixed income allocation since that is where the major risk exposure is. My reasoning is that wh...
by Dandy
Fri Sep 26, 2014 10:06 am
 
Forum: Investing - Help with Personal Investments
Topic: My IPS and rebalancing
Replies: 12
Views: 1057

Re: Young Investor (in High School) with $15k to invest

My advice for a young and inexperienced investor who is smart enough to think about investing and having an emergency fund: 1. Read several books on this forum's reading list 2. At the onset be more conservative than you think you should - since you don't know your risk tolerance. 3. Define what you...
by Dandy
Fri Sep 26, 2014 9:24 am
 
Forum: Investing - Help with Personal Investments
Topic: Young Investor (in High School) with $15k to invest
Replies: 13
Views: 1250

Re: Unexpected Emergency

I would try to reduce the 401k to get the most company max (assuming they offer a match). A lot depends on the loan rate and how much loan you need.
by Dandy
Thu Sep 25, 2014 4:34 pm
 
Forum: Investing - Help with Personal Investments
Topic: Unexpected Emergency
Replies: 33
Views: 3213

Re: New Tony Robbins Book on Financial Freedom

This Tony Robbins? from a google of his name http://www.nytimes.com/2012/08/05/opinion/sunday/the-positive-power-of-negative-thinking.html?_r=0 The New York Times‎ - Aug 2012 ... Calif., 21 people were treated for burns after walking barefoot over hot coals as part of an event called Unleash the Pow...
by Dandy
Thu Sep 25, 2014 9:48 am
 
Forum: Investing - Theory, News & General
Topic: New Tony Robbins Book on Financial Freedom
Replies: 8
Views: 1292

Re: Stubbornly Non-Boglehead Husband. What To Do?

He is brilliant, works in the financial business, makes a lot of money and loves to research/buy stocks almost like a hobby. Not much hope for change. I'm sure his approach is probably reinforced by his associates at work. Such investing is a gambling high. Guard your 50% Usually only a life changin...
by Dandy
Thu Sep 25, 2014 9:34 am
 
Forum: Investing - Theory, News & General
Topic: Stubbornly Non-Boglehead Husband. What To Do?
Replies: 122
Views: 7499

Re: It's pretty freaky watching your stocks go up & down all

That is why I suggest new investors start off more conservative than most others. You can understand things intellectually but it often feels a lot different when you actually watch your money shrink. And, these last few days have been relatively mild. Try watching the S&P drop several hundred p...
by Dandy
Tue Sep 23, 2014 9:45 pm
 
Forum: Investing - Theory, News & General
Topic: It's pretty freaky watching your stocks go up & down all day
Replies: 60
Views: 5399

Re: Could one theoretically be 100% stocks your whole life?

Disciple of John Neff Wow I haven't heard that name in awhile. Great large cap value investor. I guess if you are going to go 100% equities US large cap value isn't a bad place to be. Since the 1980's I think we have had a generally favorable bull market most of the time. With a few notable excepti...
by Dandy
Tue Sep 23, 2014 10:08 am
 
Forum: Investing - Theory, News & General
Topic: Could one theoretically be 100% stocks your whole life?
Replies: 43
Views: 2740

Re: Could one theoretically be 100% stocks your whole life?

Warren Buffet and his wife have not won the game - they own the league. They are literally out of our league. If the stock market lost 90% of it's value his wife would still have a comfortable retirement. There seems to be some fascination about 100% equity allocation. Yes, equities have returned mo...
by Dandy
Tue Sep 23, 2014 8:46 am
 
Forum: Investing - Theory, News & General
Topic: Could one theoretically be 100% stocks your whole life?
Replies: 43
Views: 2740

Re: Help with company pension lump-sum offer

I would opt for the pension at 62 as a general "rule". That assumes your health/life expectancy etc are not an issue and the mega company is not in a risky financial position. Guaranteed payments for the rest of your life is a nice thing to have. You might gain more by investing the lump s...
by Dandy
Tue Sep 23, 2014 8:21 am
 
Forum: Personal Finance (Not Investing)
Topic: Help with company pension lump-sum offer
Replies: 7
Views: 832

Re: Leeraar's Three-Holding Portfolio

In general, simplicity is a good thing. The trade off is that a simple 3 fund portfolio or a portfolio of 2 balanced funds may not have all the products or the allocation to them that you desire or have some you don't desire . e.g. the 3 fund portfolio doesn't include TIPS, most balance funds aren't...
by Dandy
Mon Sep 22, 2014 4:48 pm
 
Forum: Investing - Theory, News & General
Topic: Leeraar's Three-Holding Portfolio
Replies: 27
Views: 2123

Re: rebalancing at age 55

I'm not in the individual stock game. You might want to compare your sectors to the S&P 500 to see where you are over or under weight the market. Trying to re balance such a large number and small % holdings seems to be a nightmare and may create a lot of taxable transactions. My advice is to gr...
by Dandy
Mon Sep 22, 2014 4:05 pm
 
Forum: Investing - Help with Personal Investments
Topic: rebalancing at age 55
Replies: 7
Views: 775

Re: Left tail portfolio - 70% bonds. Good idea?

I am in early retirement and have about 57% fixed income moving to 60% in a few years. I decided to temper volatility on the fixed income side by allocating 1/3 to intermediate bond funds (incl TIPS), 1/3 in short term bond funds and 1/3 in "safe" e.g. CDs, other FDIC products, legacy HH a...
by Dandy
Sun Sep 21, 2014 11:06 am
 
Forum: Investing - Theory, News & General
Topic: Left tail portfolio - 70% bonds. Good idea?
Replies: 38
Views: 3180

Re: So what the benckmark SWR for a 25 year retirement?

Don't think of safe withdrawal rate - think reasonable starting point. So much can happen over 25 to 30 years you really do have to keep an eye on your health, expenses and portfolio in most cases as I believe you know.
by Dandy
Sun Sep 21, 2014 10:21 am
 
Forum: Investing - Help with Personal Investments
Topic: So what the benckmark SWR for a 25 year retirement?
Replies: 14
Views: 955

Re: $500,000 to invest long-term at age 30 - Where? How?

When the dividends are arranged to go to Prime, when do you then reinvest them Since Prime pays almost nothing I would not let much money sit there for long. Either have divs and cap gains reinvested or use Prime $ to rebalance when the money builds up. In taxable accounts it is better to use contr...
by Dandy
Sun Sep 21, 2014 9:34 am
 
Forum: Investing - Help with Personal Investments
Topic: $500,000 to invest long-term at age 30 - Where? How?
Replies: 29
Views: 5010

Re: $500,000 to invest long-term at age 30 - Where? How?

I am biased toward Vanguard. you can invest on your own, with very low costs. Assuming the $500 k is in taxable accounts I also like the Total Stock Market 50%, Total International 25%, and Intermediate Tax Free at 25%. Most studies show if you have a long time horizon to just invest the whole lump ...
by Dandy
Sun Sep 21, 2014 9:16 am
 
Forum: Investing - Help with Personal Investments
Topic: $500,000 to invest long-term at age 30 - Where? How?
Replies: 29
Views: 5010

Re: Trusting our advisor?

DFA funds have a decent reputation so that is a good sign. If you are afraid of too much international I would speak to your advisor. That risk should be discussed before investing. On the surface the allocation makes some sense given the size of the US markets vs the rest of the globe. Not many ret...
by Dandy
Sun Sep 21, 2014 8:44 am
 
Forum: Investing - Help with Personal Investments
Topic: Trusting our advisor?
Replies: 25
Views: 1882

Re: Total bond index or 5 yr CD?

Why would you not get the CD? Because there is a chance that the bond fund will have a better outcome, i.e. more money, after 5 years than the CD. But it could also have a worse outcome. That's the risk. True. I don't think there will be much difference whether a person buys all Total bond, all 5yr...
by Dandy
Sun Sep 21, 2014 8:00 am
 
Forum: Investing - Help with Personal Investments
Topic: Total bond index or 5 yr CD?
Replies: 36
Views: 2777

Re: Total bond index or 5 yr CD?

I can recall a similar situation decades ago when interest rates soared. My in laws had whole life policies that guaranteed loans at 3 or 5% and CDs were paying 15%. There was no risk to the money and you could get a double digit better return. If interest rates dropped you could repay the loan. Soo...
by Dandy
Sun Sep 21, 2014 6:27 am
 
Forum: Investing - Help with Personal Investments
Topic: Total bond index or 5 yr CD?
Replies: 36
Views: 2777

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

Congrats. We don't often think of the stress and issues of having to wisely invest such a large sum. You do need to consult several financial planners and other professionals e.g. tax/estate lawyers. Your assets and needs are above my expertise I would add that you obviously need to take zero risk. ...
by Dandy
Sat Sep 20, 2014 7:07 pm
 
Forum: Investing - Help with Personal Investments
Topic: I need "Ultra High Net Worth" investing advice please
Replies: 225
Views: 18693

Re: Total bond index or 5 yr CD?

Serious investors sometimes have a problem with CDs. Historically, they have not been a great deal - though they did have some good years when interest rates were much higher. Most investment professionals and authors who advise on asset allocation usually don't think of CDs, Ibonds, EE bonds and ev...
by Dandy
Sat Sep 20, 2014 6:47 pm
 
Forum: Investing - Help with Personal Investments
Topic: Total bond index or 5 yr CD?
Replies: 36
Views: 2777

Re: Help! Are we making a huge mistake?

If having enough money to enjoy life and retirement isn't the issue then go with what will make you happy. At some point additional money can get to be too much of a focus. enjoying life and relationships can be more satisfying. If working for 3 years will get you to have the wealth to enjoy the res...
by Dandy
Sat Sep 20, 2014 11:10 am
 
Forum: Personal Finance (Not Investing)
Topic: Help! Are we making a huge mistake?
Replies: 39
Views: 5090

Re: When did you feel "Out of the Woods"?

Early stages you are mostly in the woods. House, children then their education keep you from getting into the clearing for the most part. It is a long hike to the clearing for most of us. It seems just when you are about to break through a bit you need to get a new roof, car or something else. Thing...
by Dandy
Sat Sep 20, 2014 8:16 am
 
Forum: Personal Finance (Not Investing)
Topic: When did you feel "Out of the Woods"?
Replies: 42
Views: 5324

Re: Revising AA, significant difference

Age in bonds is a place to start the thinking process. Many believe that you should reduce risk as you age -- even more believe you should reduce risk as you near or are in retirement. But not everyone. Those that plan to retire early have more years to make their portfolio last. That might make hav...
by Dandy
Fri Sep 19, 2014 10:07 am
 
Forum: Investing - Help with Personal Investments
Topic: Revising AA, significant difference
Replies: 11
Views: 890

Re: A safe full of cash

I could see a few thousand in cash in case of a prolonged power failure. Hurricane Sandy put us out of power for 4 days (a minor problem compared to many). We were lucky that some restaurants in the next town had power so we could use our credit cards. Gas stations could pump gas so cash wouldn't he...
by Dandy
Fri Sep 19, 2014 9:40 am
 
Forum: Investing - Help with Personal Investments
Topic: A safe full of cash
Replies: 22
Views: 3063

Re: How often do YOU rebalance and when?

As part of your intermediate term bonds, do you invest in the Vanguard TIPS fund?

Abuss -Yes - TIPS fund is the highest dollar amount. Closely followed by Total Bond. Also, have allocations to Investment Grade Corporate and Intermediate Muni.
by Dandy
Thu Sep 18, 2014 5:08 pm
 
Forum: Investing - Help with Personal Investments
Topic: How often do YOU rebalance and when?
Replies: 39
Views: 1976

Re: Why Invest in Bonds in your early 30s?

I'm in my mid 60's and never allocated more than 55% to equities. Lived below our means, saved in the mid double digits or more and retired in 2008 with more than enough to last through retirement. That was a pretty bad time to retire. I started off with heavy investments in my Stable Value Fund tha...
by Dandy
Thu Sep 18, 2014 4:47 pm
 
Forum: Investing - Help with Personal Investments
Topic: Why Invest in Bonds in your early 30s?
Replies: 43
Views: 3565

Re: CalPERS Eliminates Hedge Fund Program

Hedge funds have been all the rage. High expense, wild west investing and loosely regulated --not suited for pension plans -- what a surprise. The classic hedge funds made big bets for outlandish expenses. Great performance - they get 20% of the gain?? plus 2%? -- a few good years and they have it m...
by Dandy
Thu Sep 18, 2014 8:06 am
 
Forum: Investing - Theory, News & General
Topic: CalPERS Eliminates Hedge Fund Program
Replies: 44
Views: 2887

Re: Proposed: 35% Maximum Bond Allocation, For Life

Maybe you can do it all with 35% fixed income. What is your goal? Maximum gains for heirs? Sleeping well? The highest percentage of not out living your portfolio? The history that equity investments outperform fixed income over long periods is not a guarantee and often seeps into decision making. A ...
by Dandy
Thu Sep 18, 2014 7:55 am
 
Forum: Investing - Theory, News & General
Topic: Proposed: 35% Maximum Bond Allocation, For Life
Replies: 37
Views: 3765

Re: How often do YOU rebalance and when?

I mainly focus on the equity vs fixed income allocation vs the sub allocations. That is where the main risk usually is. Being in retirement I have tighter bands/tolerance. So, in 2013 I made several moves out of equities but have made none this year. I am more likely to pass on moving into equities ...
by Dandy
Thu Sep 18, 2014 7:32 am
 
Forum: Investing - Help with Personal Investments
Topic: How often do YOU rebalance and when?
Replies: 39
Views: 1976

Re: Inflation Bonds - Staying the Course?

In retirement inflation is a substantial risk. I have a decent allocation to the VG TIPS fund and plan to continue. Inflation is very low now but do I think we somehow have the knowledge or ability to keep it low? No. So, a well diversified equity and fixed income portfolio makes sense to me. Especi...
by Dandy
Wed Sep 17, 2014 10:13 am
 
Forum: Investing - Theory, News & General
Topic: Inflation Bonds - Staying the Course?
Replies: 43
Views: 3132

Re: How to best adjust asset allocation as years pass

For me the most important allocation is stock vs fixed income. That is where the risk management is most important. I don't think it is critical to drop your equity allocation exactly by 1% for each passing year. But you know the direction will be fewer equities as you age, at least until it hits an...
by Dandy
Wed Sep 17, 2014 10:07 am
 
Forum: Investing - Help with Personal Investments
Topic: How to best adjust asset allocation as years pass
Replies: 21
Views: 1788

Re: Pension Lump Sum Roth Converstion

I would caution you about the decision. The lump sum option tends to have "sparkle" that seems more attractive than "dull" low monthly payments. Do the math. Converting to Roth will reduce the "sparkle" a bit due to taxes. Just yesterday my friend told me about his sist...
by Dandy
Wed Sep 17, 2014 9:37 am
 
Forum: Investing - Help with Personal Investments
Topic: Pension Lump Sum Roth Converstion
Replies: 3
Views: 311
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