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Re: Graduating Medical Student- Rent vs. Buy in Residency

For a busy person a house is sometimes a financial and work burden. I'd rent where the landlord or super keeps things humming and enjoy the off time..
by Dandy
Fri Mar 27, 2015 1:12 pm
 
Forum: Personal Finance (Not Investing)
Topic: Graduating Medical Student- Rent vs. Buy in Residency
Replies: 35
Views: 1685

Re: I'm a single 38 yo female needing financial advice

Wow $1500 incl utilities in NYC -- seems like a great deal. You probably need to do some reading - and are probably short on reading time given work and new business start up. I'll try to give some basics that I have learned from others: 1. What you can control is how you allocate you money between ...
by Dandy
Fri Mar 27, 2015 1:08 pm
 
Forum: Personal Finance (Not Investing)
Topic: I'm a single 38 yo female needing financial advice
Replies: 13
Views: 1566

Re: Bonds: Bernstein vs. Swedroe and Ferri

25 years worth of expenses in very low yielding assets? That's great if you can do it, but many people simply aren't in a position to save that much. So true - it is really for those who can afford to or as he says have won the game. Many who have won the game with an aggressive allocation in the a...
by Dandy
Fri Mar 27, 2015 9:33 am
 
Forum: Investing - Theory, News & General
Topic: Bonds: Bernstein vs. Swedroe and Ferri
Replies: 96
Views: 10225

Re: Vanguard target fund vs age in bonds

Vanguard late dated Target Date funds are way too aggressive as far as I'm concerned. Don't let those allocations/dates overly influence your allocation. 70% equities is plenty aggressive for most people. Your target allocation is significantly above age in bonds starting point - so that is also a d...
by Dandy
Fri Mar 27, 2015 6:20 am
 
Forum: Investing - Help with Personal Investments
Topic: Vanguard target fund vs age in bonds
Replies: 12
Views: 1314

Re: Capital preservation in retirement

My house is paid for, and I live very comfortably on less that half of my (state) pension and Social Security. You are in great financial shape == double the income needed and 1 million in financial assets.I'm not sure why you seem to feel so strongly about asset preservation. It doesn't appear you...
by Dandy
Fri Mar 27, 2015 6:15 am
 
Forum: Investing - Help with Personal Investments
Topic: Capital preservation in retirement
Replies: 23
Views: 2492

Re: Bonds: Bernstein vs. Swedroe and Ferri

In retirement I think Bill hit the right note. Bottom up approach i.e. what is the funding I need each year from my nest egg. Keep 20-25 years worth "safe". Do what you want with the excess. Makes more sense than trying to figure out your risk tolerance and translating that into a top down...
by Dandy
Thu Mar 26, 2015 10:39 pm
 
Forum: Investing - Theory, News & General
Topic: Bonds: Bernstein vs. Swedroe and Ferri
Replies: 96
Views: 10225

Re: John Bogle's Don't Peek Challenge

As I have said before, the daily machinations of the stock market are like a tale told by an idiot, full of sound and fury, signifying nothing,” Bogle added. “One of my favorite rules is ‘Don’t peek.’ Don’t let all the noise drown out your common sense and your wisdom. Just try not to pay that much...
by Dandy
Thu Mar 26, 2015 10:25 pm
 
Forum: Investing - Theory, News & General
Topic: John Bogle's Don't Peek Challenge
Replies: 103
Views: 8528

Re: John Bogle's Don't Peek Challenge

I listened to the video where Mr. Bogle was discussing not peeking at your 401k statement until you were 85. It wasn't a serious recommendation it was an illustration of how much people should ignore the day to day moves of the market. If that is what this post is about I'd seriously doubt that Mr. ...
by Dandy
Thu Mar 26, 2015 5:27 pm
 
Forum: Investing - Theory, News & General
Topic: John Bogle's Don't Peek Challenge
Replies: 103
Views: 8528

Re: Bond fund or CD Ladder

Why not do a bit of both. VG longer term CDs are much better than their short term CDs. If you are expecting to use this money buy say a 3 and 5 year CD and invest the rest in the short term bond fund. If/when interest rates rise maybe buy another 3 and 5 year CD next year. So, build the rungs a bit...
by Dandy
Thu Mar 26, 2015 4:58 pm
 
Forum: Investing - Theory, News & General
Topic: Bond fund or CD Ladder
Replies: 16
Views: 1935

Re: A Vanguard transfer issue... Thoughts?

I think you have a legit issue to discuss with VG. I worked for two different mutual fund companies. 1. the first one had a leader you was profit oriented but saw having satisfied customers as the way to get there longer term and have happy employees as a way to keep customers happy. Before and afte...
by Dandy
Thu Mar 26, 2015 4:51 pm
 
Forum: Investing - Help with Personal Investments
Topic: A Vanguard transfer issue... Thoughts?
Replies: 12
Views: 929

Re: Variable spending strategies paper by Pfau

All withdrawal strategies are stating points. For most it would be foolish to think you could pick a strategy that would serve you best and not adjust it for 25 or30 years - or that you would be competent to implement it for all that time. It could serve you well but that is very unlikely in my opin...
by Dandy
Thu Mar 26, 2015 8:49 am
 
Forum: Personal Finance (Not Investing)
Topic: Variable spending strategies paper by Pfau
Replies: 32
Views: 3061

Re: What would you do with 1.25 million dollars for 1 year?

I'd probably go the 6 bank route. But I would be worried about pulling all that money into what vehicle to write a 1.24 million dollar check or coordinating 6 wire transfers or have a checking or money market account at each bonk and write 6 checks?? Think the disbursement issue through so you don't...
by Dandy
Thu Mar 26, 2015 8:30 am
 
Forum: Investing - Help with Personal Investments
Topic: What would you do with 1.25 million dollars for 1 year?
Replies: 39
Views: 3463

Re: [Poll] Do you have an auto loan?

I usually put down a decent cash deposit and the rest in a HELOC. I pay off the HELOC in about 6 months or so. I have a favorable 2.74% HELOC rate which is tax deductible and try not to disturb my savings. Though when the rates offered at the car dealership are like 1% or less I would use them inste...
by Dandy
Wed Mar 25, 2015 8:59 pm
 
Forum: Personal Finance (Not Investing)
Topic: [Poll] Do you have an auto loan?
Replies: 63
Views: 3444

Re: Life insurance cash value as emergency fund

From what you described it sounds a bit too good to be true. You can put money in, earn 4% and withdraw without penalty and get the $ in a few weeks. I'd look for some catch. While the GUL policy is probably very profitable for them - I don't see how they can afford to pay you 4% on these extra cont...
by Dandy
Wed Mar 25, 2015 8:55 pm
 
Forum: Personal Finance (Not Investing)
Topic: Life insurance cash value as emergency fund
Replies: 4
Views: 305

Re: Best Bank for Checking Account

I have an interest free checking account at a major brick bank that is very convenient. It pays not interest so I am tempted to look around for a better checking that is free and pays interest and has no gotchas. Then I figured out what an average balance would be and the interest it would generate ...
by Dandy
Wed Mar 25, 2015 8:00 am
 
Forum: Personal Finance (Not Investing)
Topic: Best Bank for Checking Account
Replies: 29
Views: 2519

Re: HELOC vs cashing out taxable? On the fence

I opened a Bank of America HELOC in early 2008 without any fees. It currently charges 2.74% and you have the option of turning any loan balance into a regular home equity loan at the same rate (I believe - haven't done that). Also, no issue with repaying and no charge. Don't know if the offer this r...
by Dandy
Wed Mar 25, 2015 7:50 am
 
Forum: Personal Finance (Not Investing)
Topic: HELOC vs cashing out taxable? On the fence
Replies: 12
Views: 1134

Re: repair or replace old car?

I would dump the car. Also I would weigh the pledge not to have a car payment with the idea of driving a really safe and reliable car. Your health and safety is very important. So, try to find a car that has upgraded safety ratings/features hopefully that will allow you to keep your pledge - but if ...
by Dandy
Wed Mar 25, 2015 7:45 am
 
Forum: Personal Finance (Not Investing)
Topic: repair or replace old car?
Replies: 22
Views: 1959

Re: Excess Cash - Play Monopoly or Repay Debt?

High income, High debt/leverage, High equity allocations, High Concentration in Real Estate. You do have some reserves/investments - just run a stress test or two on some bad case scenarios. e.g. equity market plunges, loss of one job, real estate market tanks, - How will you likely fare? If that ra...
by Dandy
Wed Mar 25, 2015 7:27 am
 
Forum: Investing - Help with Personal Investments
Topic: Excess Cash - Play Monopoly or Repay Debt?
Replies: 66
Views: 4695

Re: Extra cash...how to use it?

I like B but would hold back about 10k until you are settled in. Moving from apartment living to home ownership is more expensive than most people realize - both start up e.g. buying a lawn mover? or on going e.g. having the roof repaired. Once you have a year under your belt you can use what is lef...
by Dandy
Wed Mar 25, 2015 7:12 am
 
Forum: Investing - Help with Personal Investments
Topic: Extra cash...how to use it?
Replies: 9
Views: 913

Re: Advice for parents

The real worry is that they did or will do something wild, crazy or stupid with the money. They seem to be in very good financial shape. I would look to better savings rates e.g. on line if they can take it, CD/CD ladders and maybe a muni bond fund if they are up to that. Keep them in things that th...
by Dandy
Wed Mar 25, 2015 7:07 am
 
Forum: Investing - Help with Personal Investments
Topic: Advice for parents [with large cash holdings]
Replies: 15
Views: 1546

Re: Restaurant tipping

I try to leave a larger percentage at the lower level restaurants than at the better restaurants for the same level of service. If the server is not attentive I would drop it a bit but sometimes when the service falters the server gets penalized when he/she might not be at fault. It's not the server...
by Dandy
Tue Mar 24, 2015 2:46 pm
 
Forum: Personal Consumer Issues
Topic: Restaurant tipping
Replies: 190
Views: 10463

Re: The one area I disagree with Jack

I do not intend to go 100% equities, but for someone who's comfortable with their fixed income level as their income floor, I'm not going to call them delusional if they put their excess money in stocks I did not call (or intend to infer) that people who are 100% in equities delusional. If 100% equ...
by Dandy
Tue Mar 24, 2015 8:36 am
 
Forum: Investing - Theory, News & General
Topic: The one area I disagree with Jack
Replies: 93
Views: 7266

Re: The one area I disagree with Jack

I generally agree with Bogle on this. I have been retired 8 years and am 64. Current portfolio is 100% equity because when I capitalize my pension it works out to about 60/40 equity to FI. Obviously I have a pretty high tolerance for risk. But a pension gives the same benefit as FI in the AA decisi...
by Dandy
Tue Mar 24, 2015 7:07 am
 
Forum: Investing - Theory, News & General
Topic: The one area I disagree with Jack
Replies: 93
Views: 7266

Re: The one area I disagree with Jack

I see you feel strongly on this matter, but in deeming some bonds "fake" and others not you're making a distinction where there isn't one, other than there being a secondary market for the "real" ones I appreciate your point and tone. My tone could be better. e.g. I used "f...
by Dandy
Mon Mar 23, 2015 4:35 pm
 
Forum: Investing - Theory, News & General
Topic: The one area I disagree with Jack
Replies: 93
Views: 7266

Re: Who should be concerned?

I don't know what breakthrough in investment research made them jump up the equity allocation 3 years after launch or to update international a year or so ago and then signal another increase in international equities and bonds is coming? The global weighting of equities has shown that the US is pre...
by Dandy
Mon Mar 23, 2015 3:41 pm
 
Forum: Investing - Theory, News & General
Topic: International increase in Target Retirement & LifeStrategy
Replies: 219
Views: 17191

Re: Who should be concerned?

I was considering these funds as a way to simplify my portfolio down the road. My wife is not investment savvy and making things simple for her is a concern. I was not thrilled when VG increased the equity allocation of these funds awhile back and again when they added international bonds. I can't s...
by Dandy
Mon Mar 23, 2015 10:45 am
 
Forum: Investing - Theory, News & General
Topic: International increase in Target Retirement & LifeStrategy
Replies: 219
Views: 17191

Re: The one area I disagree with Jack

I have to point out that the above example is quite unfair to Jack I don't think I'm being unfair to Jack - I think I am addressing those followers that take his advice too far. They don't temper the "advice" of having income streams converted into "fake" bonds with his advice o...
by Dandy
Mon Mar 23, 2015 10:19 am
 
Forum: Investing - Theory, News & General
Topic: The one area I disagree with Jack
Replies: 93
Views: 7266

Re: The one area I disagree with Jack

Many consider taking all of these into account in determining asset allocation as quite rational (and others do not). I think people should take everything including their stamp collection into account when determining their asset allocation. If they then decide that they want to go 100% equities t...
by Dandy
Sun Mar 22, 2015 9:16 pm
 
Forum: Investing - Theory, News & General
Topic: The one area I disagree with Jack
Replies: 93
Views: 7266

Re: The one area I disagree with Jack

This is just another example of mental accounting and bucket thinking which makes us go in tunnel vision. SS is a given, so... pooof, we forget about it and we think about our AA in its own bucket. And then we make decisions like SS doesn't exist. Which makes little sense. Actually, the mental acco...
by Dandy
Sun Mar 22, 2015 5:04 pm
 
Forum: Investing - Theory, News & General
Topic: The one area I disagree with Jack
Replies: 93
Views: 7266

Re: Dilemma re: taxable account

The FA seems to be ignoring the fundamental concept that one should follow an asset allocation for all assets There is another fundamental concept that if you are investing for less than 5 years? you should not invest in equities . The OP has a specific short term goal of funding every year for 4 y...
by Dandy
Sun Mar 22, 2015 4:54 pm
 
Forum: Investing - Help with Personal Investments
Topic: Dilemma re: taxable account
Replies: 18
Views: 1652

Re: Dilemma re: taxable account

Let me repeat: If one has fixed income (CD, bonds, etc) in taxable and the market drops 50%, then any equities in tax-advantaged are also going to drop. Having fixed income in taxable will not save one . Thanks for repeating. I reread the OP's post and it is not totally clear. If the OP needs 4 yea...
by Dandy
Sun Mar 22, 2015 9:25 am
 
Forum: Investing - Help with Personal Investments
Topic: Dilemma re: taxable account
Replies: 18
Views: 1652

Re: The one area I disagree with Jack

I totally disagree with Mr. Bogle on this. Why should a stream of income be counted as a bond? I never hear those who espouse that say count your salary as a bond? I am in favor of people taking their streams of income into account when deciding what their allocation should be. Those with a pension ...
by Dandy
Sun Mar 22, 2015 8:46 am
 
Forum: Investing - Theory, News & General
Topic: The one area I disagree with Jack
Replies: 93
Views: 7266

Re: Lump sum - how to invest it now and sleep at night?

Nice position to be in. With all this money so young you have to ask yourself what is your need to take risk vs your ability to take risk. Some in your position would go 100% equities and others would become more conservative figuring if they have not already won the game, they have an unbeatable le...
by Dandy
Sun Mar 22, 2015 8:24 am
 
Forum: Investing - Help with Personal Investments
Topic: Lump sum - how to invest it now and sleep at night?
Replies: 27
Views: 3158

Re: Dilemma re: taxable account

Your FA isn't going to help you if the market drops say 50% and you still have to take money out for 4 years. Likely to happen - no, possible yes. Guaranteed funding for 4 years as a bridge to a full pension or Social Security makes sense to me. CDs are a good choice. That approach isn't to optimize...
by Dandy
Sun Mar 22, 2015 8:02 am
 
Forum: Investing - Help with Personal Investments
Topic: Dilemma re: taxable account
Replies: 18
Views: 1652

Re: Timing for taking RMDs

While I plan to take RMD at the beginning of the year those who wait, over time should have gains with even a modest equity allocation since equities are expected to rise over time. I am not bothered by this possible loss of appreciation but for others it could be a consideration.
by Dandy
Sat Mar 21, 2015 4:34 pm
 
Forum: Personal Finance (Not Investing)
Topic: Timing for taking RMDs
Replies: 18
Views: 1623

Re: Term Insurance Shopping - Local Agent vs. Online?

If you know you want term it is pretty simple just to buy on line. You want to make sure it is from a top rated company, that it is guaranteed renewable up to at least age 65 (unless you have a shorter need) and you want to look at premiums. Most agents don't make money selling term so you are likel...
by Dandy
Sat Mar 21, 2015 1:31 pm
 
Forum: Personal Finance (Not Investing)
Topic: Term Insurance Shopping - Local Agent vs. Online?
Replies: 8
Views: 671

Re: International is disappointing

Maybe the US is over valued? Maybe international will outperform the US for the next number of years. Maybe when it has been underperforming you should buy more -- that is the idea of rebalancing.
by Dandy
Sat Mar 21, 2015 1:25 pm
 
Forum: Investing - Help with Personal Investments
Topic: International is disappointing
Replies: 84
Views: 7059

Re: Buying a house: which scenario is better?

Buy a house with a "woman" - not sure what this means except a co owner that isn't related to you by marriage. I say not a good idea. Divorce has its own issues by a non spouse co owner is just asking for trouble. You need both parties to sell and if one wants out the other has to buy out ...
by Dandy
Sat Mar 21, 2015 1:22 pm
 
Forum: Investing - Help with Personal Investments
Topic: Buying a house: which scenario is better?
Replies: 9
Views: 1067

Re: Mother-in-laws portfolio. Need advice.

Will you be her new advisor? I'm guessing her advisor recommended funds and answered any questions. If so, she will want someone not only she trusts but someone who knows something about investing, asset allocation etc. Are you the man? That would be relatively easy for some and not so good for othe...
by Dandy
Sat Mar 21, 2015 1:14 pm
 
Forum: Investing - Help with Personal Investments
Topic: Mother-in-laws portfolio. Need advice.
Replies: 9
Views: 1141

Re: 25 years old. Need help and more Boglehead book info

You raise some interesting points. I'd caution you a bit on thinking your Texas teacher pension is going to turn out the way it reads now. Lots of pressure on states and companies cutting back on pensions - one state even had not cutting state pensions in their constitution and it was still cut. I h...
by Dandy
Sat Mar 21, 2015 1:06 pm
 
Forum: Investing - Help with Personal Investments
Topic: 25 years old. Need help and more Boglehead book info
Replies: 6
Views: 647

Re: Opened an account Vanguard yesterday, now having cold fe

Easy guy - markets go up and down - most experts hedge their bets saying I'm bullish on the longer term but there may be some corrections before then -- really? Others like to make bold predictions to get attention. If it turns out right or close to right they get on all the talk shows and write ano...
by Dandy
Sat Mar 21, 2015 12:56 pm
 
Forum: Investing - Help with Personal Investments
Topic: Opened an account Vanguard yesterday, now having cold feet
Replies: 60
Views: 3592

Re: Step callable long term CD for fixed income- pros & cons

Oops - didn't pick up on the callable feature - not worth it when that is included.
by Dandy
Sat Mar 21, 2015 9:12 am
 
Forum: Investing - Theory, News & General
Topic: Step callable long term CD for fixed income- pros & cons?
Replies: 17
Views: 903

Re: Step callable long term CD for fixed income- pros & cons

I think CDs are a good diversifier for retiree fixed income. I think a small allocation to longer term CDs is ok but I'm thinking max 10 years. I could see locking in a 20 year CD with those rates as a hedge against low interest rates and even deflation. But, only for a small part of my fixed income...
by Dandy
Sat Mar 21, 2015 9:06 am
 
Forum: Investing - Theory, News & General
Topic: Step callable long term CD for fixed income- pros & cons?
Replies: 17
Views: 903

Re: Timing for taking RMDs

In reality whether or not you take it at the beginning or end of the year won't matter much since most retirees don't have very aggressive portfolios. If you really don't need the RMD for current living expenses then over time leaving it in longer will probably mean better growth. I'm a few years aw...
by Dandy
Sat Mar 21, 2015 7:36 am
 
Forum: Personal Finance (Not Investing)
Topic: Timing for taking RMDs
Replies: 18
Views: 1623

Re: How do you invest your taxable account?

Taxable account is mostly Total Stock, Total Int'l, Small Cap and Limited Term tax exempt. Some other fixed income to bridge expenses till SS at age 70. Will be adding Intermediate Tax exempt down the road.
by Dandy
Fri Mar 20, 2015 9:07 pm
 
Forum: Investing - Theory, News & General
Topic: How do you invest your taxable account?
Replies: 62
Views: 5717

Re: Any situations car leasing makes sense?

For most people and most situations most leases seem like a bad idea. It is nice to drive a nice new car every 3 years - but you pay a lot for that feeling. I know several people who leased and then changed jobs and had a much longer commute - they were stuck either paying something like 25cents a m...
by Dandy
Fri Mar 20, 2015 3:25 pm
 
Forum: Personal Finance (Not Investing)
Topic: Any situations car leasing makes sense?
Replies: 63
Views: 4952

Re: Anyone concerned about their bond holdings?

Rising interest will affect bonds and stocks for awhile which won't be pleasant for those in retirement - a buying opportunity for those in the accumulation stage. I wish they would just get on with it - can't believe how much tea leaf reading the Fed and media is doing - seems like more data is aff...
by Dandy
Fri Mar 20, 2015 3:09 pm
 
Forum: Investing - Theory, News & General
Topic: Anyone concerned about their bond holdings?
Replies: 58
Views: 5575

Re: Staying the course

It is very difficult to set a course and follow it for decades given life changes, new products, market extremes, portfolio size and better understanding of risk and risk tolerance. Not only difficult but perhaps unwise. So is the alternative of a rudderless drifting from idea to another. Perhaps an...
by Dandy
Fri Mar 20, 2015 2:57 pm
 
Forum: Investing - Help with Personal Investments
Topic: Staying the course
Replies: 9
Views: 902

Re: What Age Did You First Ponder Financial Independence?

I was always a saver probably from encouragement from my mom who opened a passbook account at a local bank so I could put my savings in and earn 3%. But, the real lesson for the need for financial independence was what happened to my Dad. Just before he would have received a full pension he was laid...
by Dandy
Fri Mar 20, 2015 7:51 am
 
Forum: Personal Finance (Not Investing)
Topic: What Age Did You First Ponder Financial Independence?
Replies: 74
Views: 6636

Re: Best income fund setup? Bond index fund?

There is no magic solution. Bond funds have some risk and relatively low yields but provide some cash in the event she needs it. An annuity provides steady income - not sure how much of a benefit for someone in their 50's - it is a better buy usually in your late 60's or older. Cd's currently pay lo...
by Dandy
Fri Mar 20, 2015 7:34 am
 
Forum: Investing - Help with Personal Investments
Topic: Best income fund setup? Bond index fund?
Replies: 3
Views: 590
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