Search found 515 matches

by Garco
Fri Jul 03, 2015 12:49 pm
Forum: Investing - Theory, News & General
Topic: How did you start?
Replies: 29
Views: 1870

Re: How did you start?

I started dumb and simple-minded. My employer had a mandatory defined contribution retirement plan. I put in 5% of my salary, my employer put in 10%. There was a limited range of options, but as a young person I went for a 75% allocation to equities, 25% allocation to TIAA Traditional. It was only w...
by Garco
Fri Jul 03, 2015 12:00 pm
Forum: Investing - Help with Personal Investments
Topic: How do you determine your personal glide path?
Replies: 12
Views: 1079

Re: How do you determine your personal glide path?

I had a segmented glidepath throughout my career, not a defined curve. Begining at age 30, for the first 25 years, it was 75% equities. Then it was rocked by the crashing markets in 2000 and 2007-8, in which I made some temporary adjustments, but moved by 2009 to ~65% equities for 5 years as I appro...
by Garco
Fri Jul 03, 2015 10:56 am
Forum: Personal Finance (Not Investing)
Topic: What age did you become debt free and what opportunities did it create?
Replies: 31
Views: 1940

Re: What age did you become debt free and what opportunities did it create?

I became debt free after my 30-year mortgage was paid off (age 62), but then one of my children went back to college.... And we supported her. Filed for SS at FRA (66) to help provide cash for that. Only really became permanently debt free at age 68 when I received an inheritance and liquidated her ...
by Garco
Fri Jul 03, 2015 10:35 am
Forum: Investing - Theory, News & General
Topic: Which Funds to Take RMD From
Replies: 17
Views: 1148

Re: Which Funds to Take RMD From

The easiest, most straightforward approach is what Lady Geek suggests. (a) take your RMD (proportionally from your invested funds), (b) rebalance to your desired proportions. This works easily if you plan to take your annual RMD in just one transaction. I do this at Fidelity, and have the MRD transf...
by Garco
Tue Jun 30, 2015 10:40 pm
Forum: Personal Finance (Not Investing)
Topic: Negotiating a Job Offer
Replies: 33
Views: 3078

Re: Negotiating a Job Offer

To the O/P. I hired a lot of people in my day (not in your industry). If I had a good prospect and wanted to make a competitive offer, I always did a few things things. (1) I asked them what they were currently being paid. (2) I then added an arbitrary percentage to that, accounting for a normal 1-y...
by Garco
Thu Jun 25, 2015 4:41 pm
Forum: Investing - Theory, News & General
Topic: What ratio are you stocks/bonds and how old are you?
Replies: 262
Views: 17013

Re: What ratio are you stocks/bonds and how old are you?

Age 71

49% stocks

Non-stocks are not all bonds. Rather a mix of real estate (not REITs), bonds, and stable value.
by Garco
Wed Jun 24, 2015 11:20 am
Forum: Investing - Theory, News & General
Topic: Decumulation Phase and BH principles
Replies: 49
Views: 5799

Re: Decumulation Phase and BH principles

@RM, I could have used different language. But my point is that one doesn't turn to decumulation on the day one retires. "Decumulation phase" is not the same thing as retirement phase. So much depends on what's happening with one's accumulation. We have moderated our allocation in the last...
by Garco
Wed Jun 24, 2015 10:53 am
Forum: Investing - Theory, News & General
Topic: Decumulation Phase and BH principles
Replies: 49
Views: 5799

Re: Decumulation Phase and BH principles

Have recently entered retirement but I do not regard this as "decumulation phase." Yes, I no longer have an annual income from work, but my goal with my portfolio is to maintain and even possibly expand the sum through measured spending and outflow. There's a bit of personal financial turb...
by Garco
Wed Jun 24, 2015 9:25 am
Forum: Investing - Theory, News & General
Topic: Small Cap Index - What % of equities?
Replies: 74
Views: 6723

Re: Small Cap Index - What % of equities?

My total style box in my main 401k retirement fund, which includes a very growthy LC international component but also a growth oriented U.S. component. I don't (and can't) completely slice and dice within my 401k plans, but this is what I get to with what I have to work with in the MF's offered (thi...
by Garco
Tue Jun 23, 2015 5:32 pm
Forum: Investing - Theory, News & General
Topic: Small Cap Index - What % of equities?
Replies: 74
Views: 6723

Re: Small Cap Index - What % of equities?

Sometimes we do things because "theory" tells us how things should work in the long run, e.g., with respect to the risk premium for smallcap. Sometimes we do things because "experience" tells us how things have tended to work, e.g., with respect to the outperformance of smallcap...
by Garco
Tue Jun 23, 2015 3:10 pm
Forum: Investing - Theory, News & General
Topic: Small Cap Index - What % of equities?
Replies: 74
Views: 6723

Re: Small Cap Index - What % of equities?

Sometimes we do things because "theory" tells us how things should work in the long run, e.g., with respect to the risk premium for smallcap. Sometimes we do things because "experience" tells us how things have tended to work, e.g., with respect to the outperformance of smallcap....
by Garco
Mon Jun 22, 2015 6:18 pm
Forum: Investing - Theory, News & General
Topic: Small Cap Index - What % of equities?
Replies: 74
Views: 6723

Re: Small Cap Index - What % of equities?

I have 31% of my U.S. domestic equities in mid-small cap. Specifically, 31% of my domestic equities are in the "extended market" index: VIEIX (or VEXMX -- or VXF as an ETF). It's mid- and small-cap, but with no value or growth tilt. But 31% is a larger percentage than implied by a VTSMX (T...
by Garco
Mon Jun 22, 2015 2:58 pm
Forum: Investing - Theory, News & General
Topic: The "4% Rule" revisited
Replies: 102
Views: 13294

Re: The "4% Rule" revisited

@cusetownusa. That Investopedia article does NOT describe how a 4% SWR process works. Instead, it describes a process of taking 4% from the accumulated assets no matter how much they have gone up. "The annual income is based on 4% of the total assets. As the assets appreciate in value, addition...
by Garco
Sun Jun 21, 2015 8:38 pm
Forum: Investing - Help with Personal Investments
Topic: European portfolio (how does it look)
Replies: 8
Views: 793

Re: European portfolio (how does it look)

@Stefan: You might also take a look at iShares IEFA, which reaches more of the developed economies beyond Europe. Quoting from Morningstar: "iShares Core MSCI EAFE provides exposure to large-, mid-, and small-cap stocks domiciled in developed Europe, Asia, and Australia. This market-cap-weighte...
by Garco
Sun Jun 21, 2015 9:22 am
Forum: Investing - Theory, News & General
Topic: Retirees: Did you spend much time wringing your hands over Retirement Savings as Many on Forum Do Today?
Replies: 81
Views: 11456

Re: Retirees: Did you spend much time wringing your hands over Retirement Savings as Many on Forum Do Today?

Not for the first 29 years of my career, which began in 1971. But with the dot-dom crash and more recently the 2008-9 crash, I did some hand-wringing. And as I approached retirement, which happened a year-ago, I paid a lot of attention to retirement planning. For most of my career as an academic (pr...
by Garco
Sun Jun 21, 2015 12:23 am
Forum: Investing - Theory, News & General
Topic: The "4% Rule" revisited
Replies: 102
Views: 13294

Re: The "4% Rule" revisited

My thanks to Ron, Taylor, and many others here for putting some real-life illustrations into the mix. I retired a year ago at age 70. I started out my "base year" of retirement counting on my MRD + SS as my gross income, which was significantly less than my gross income in my last working ...
by Garco
Sat Jun 20, 2015 10:44 pm
Forum: Personal Consumer Issues
Topic: At what point do bogleheads look at bogleheads.org?
Replies: 15
Views: 2962

Re: At what point do bogleheads look at bogleheads.org?

I check this site several times per week but it's not part of a daily routine. I'm here basically to learn but also to help answer questions when I can, or to provide information for some of the surveys that are conducted here. Usually when I do check this site it's in the evening, since I'm not loo...
by Garco
Thu Jun 18, 2015 8:53 am
Forum: Investing - Theory, News & General
Topic: When does the long term start?
Replies: 26
Views: 3442

Re: When does the long term start?

This is looking bad to me. At age 70, I don't have but one or two long runs left.... :|
by Garco
Wed Jun 17, 2015 4:41 pm
Forum: Investing - Help with Personal Investments
Topic: TIAA-Cref Alternatives
Replies: 11
Views: 1177

Re: TIAA-Cref Alternatives

@Greyfox: 1) Am I correct that the only funds that increased their ER was TIAA-CREF equities funds? What percentage of your holding was in the "company stock?" I also participate in TIAA-CREF, but I have no (zero) dollars invested in T-C equities funds. Hence the increase in the ER for som...
by Garco
Tue Jun 16, 2015 1:49 pm
Forum: Investing - Help with Personal Investments
Topic: checking in after changes to 401k
Replies: 17
Views: 1383

Re: checking in after changes to 401k

So, does this seem reasonable? Or have I not provided enough info? Fidelity Spartan US Equity Index (FUSEX) .09 - 50% Oakmark International (OAKIX) .95 - 20% Vanguard Small Cap Value Index (VISVX) .23 - 10% Vanguard Total Bond (VBMFX) .2 - 20% In my opinion, if this were your 401k allocation, I wou...
by Garco
Fri Jun 05, 2015 1:12 pm
Forum: Investing - Help with Personal Investments
Topic: Just start investment, should I sell VDE and Reits ?
Replies: 16
Views: 960

Re: Just start investment, should I sell VDE and Reits ?

If you are a young investor, just starting, as you say, then you should consider starting over. Not saying you should dispose of your initial holdings, but you should get a plan for asset allocation and accumulation over a working career. Stay away from guessing what's hot.
by Garco
Sun May 31, 2015 10:05 pm
Forum: Investing - Help with Personal Investments
Topic: Best Fund for Taxable Account
Replies: 31
Views: 4102

Re: Best Fund for Taxable Account

I would suggest that you consider ETF's rather than mutual funds in your taxable account. In general they are more tax efficient b/c they don't throw of as much taxable yield. They are at least as easy to buy and sell. They have low ER's. You can also slice and dice with ETF's if you want to. Once y...
by Garco
Sat May 30, 2015 1:44 pm
Forum: Investing - Theory, News & General
Topic: What are you up YTD? [Year To Date]
Replies: 402
Views: 48146

Re: What are you up YTD?

YTD is noisy, yes. But for the record it's +4.27% as of May 30, 2015. (48% equities, the rest a mix of bonds, multi-asset funds, stable value fund, and real estate).
by Garco
Fri May 29, 2015 7:15 pm
Forum: Personal Finance (Not Investing)
Topic: How to Estimate Nonresident Taxes in Multiple States
Replies: 3
Views: 370

Re: How to Estimate Nonresident Taxes in Multiple States

I couldn't estimate in advance, but two years ago I had to pay taxes in 3 states. I did this using Turbotax ;). Even with K-1 forms and others, it seems to have done well. Did federal, then my home state, then two other states.
by Garco
Fri May 29, 2015 2:01 pm
Forum: Investing - Help with Personal Investments
Topic: All cash now ($1M) - need advice on entering this lofty market
Replies: 96
Views: 9862

Re: All cash now ($1M) - need advice on entering this lofty market

Hi Ed. Thanks for the clarifications. I like the fact that you take October 2007 as your reference point, as do I. I also took SS before age 70, namely at 66, mainly with the intention of making sure we liquidated all debt before retirement at age 70. Just that "little" amount per month, d...
by Garco
Fri May 29, 2015 12:28 pm
Forum: Investing - Help with Personal Investments
Topic: All cash now ($1M) - need advice on entering this lofty market
Replies: 96
Views: 9862

Re: All cash now ($1M) - need advice on entering this lofty market

This is just one more endorsement for the OP to jump in, perhaps with a lump sum (perhaps 1/4 to 1/3 of the cash) to begin with, followed by a DCA that's not too extended (12-24 months). If the latter is drawn out too long, he will be too tempted to jump out again before the process is completed. Al...
by Garco
Mon May 25, 2015 12:31 pm
Forum: Investing - Help with Personal Investments
Topic: 36 Years Old With No Investments
Replies: 12
Views: 2194

Re: 36 Years Old With No Investments

The one thing that alarms me is that the OP mentions the ages of the three children but doesn't propose setting aside money for college costs. While a couple of posters referred to setting up 529 plans, I hope the OP's analysis goes further than that. He may find himself with a lot of money 15 years...
by Garco
Mon May 25, 2015 11:52 am
Forum: Investing - Help with Personal Investments
Topic: Plan for Asset Allocation changes with age
Replies: 14
Views: 1006

Re: Plan for Asset Allocation changes with age

I'd like to borrow a term from theories of evolution: punctuated equilibrium. As I have moved from young investor, to mid-career, to pre-retirement, and now retirement stages, my AA changed with my self-definition of my financial and work status. Of course, I read the literature, including the vario...
by Garco
Mon May 25, 2015 11:51 am
Forum: Investing - Help with Personal Investments
Topic: Plan for Asset Allocation changes with age
Replies: 14
Views: 1006

Re: Plan for Asset Allocation changes with age

--**DELETE DUPLICATE ENTRY8**--
by Garco
Fri May 15, 2015 8:14 am
Forum: Personal Finance (Not Investing)
Topic: Am I a Millionaire???
Replies: 53
Views: 6690

Re: Am I a Millionaire???

Being a millionaire ain't what it used to be. When Marilyn Monroe starred in the film "How to Marry a Millionaire" in 1953, and the old TV series "Millionaire" was on the air during the "Golden Age of Television" in 1955-1960 THAT's when being a millionaire was really s...
by Garco
Thu May 14, 2015 10:10 am
Forum: Personal Finance (Not Investing)
Topic: Anyone went to top 10 business school? Got a 730 on GMAT. Thoughts?
Replies: 20
Views: 3038

Re: Anyone went to top 10 business school? Got a 730 on GMAT. Thoughts?

To the OP: You're getting good advice about work experience: 3-5 years, progressive responsibility, problem solving and creativity . Your GMAT makes you "eligible," but you need a story-line, and I don't see it yet. Go to the website of 3 or 4 top MBA programs. Look at the application form...
by Garco
Wed May 13, 2015 3:11 pm
Forum: Investing - Help with Personal Investments
Topic: Total beginner needs advice
Replies: 16
Views: 2046

Re: Total beginner needs advice

Good decision. Keep on keeping it simple. Focus on your career, not your investing.
by Garco
Wed May 13, 2015 2:55 pm
Forum: Investing - Theory, News & General
Topic: Poll: Increasing international equities
Replies: 70
Views: 5815

Re: Poll: Increasing international equities

As that old joke goes, I have predicted 5 of the last 2 turns in the international stock market. I stay with international allocations of 25-35% in my various equities accounts. Sometimes I win. Sometimes I lose. Steady as she goes.
by Garco
Wed May 13, 2015 11:12 am
Forum: Investing - Help with Personal Investments
Topic: Portfolio Advice: Especially with TIAA Real Estate
Replies: 21
Views: 1072

Re: Portfolio Advice: Especially with TIAA Real Estate

Because of TREA's special characteristics I also treat it (as does TIAA-CREF) as a distinct asset class -- no matter that, as I wrote earlier on this thread -- it is technically a form of equity holding. I think the idea of assuming that TREA is 50-50 stocks vs. fixed income is OK if you're trying t...
by Garco
Tue May 12, 2015 12:03 am
Forum: Investing - Help with Personal Investments
Topic: Portfolio Advice: Especially with TIAA Real Estate
Replies: 21
Views: 1072

Re: Portfolio Advice: Especially with TIAA Real Estate

I also treat TREA as if it was not equities, though technically it involves ownership shares (units) in real estate property -- I.e., it's not a bond. Nonetheless TREA behaves differently from stocks and has a low correlation with stock market performance. In your reckoning I wouldn't include TREA i...
by Garco
Sat May 09, 2015 2:10 pm
Forum: Investing - Theory, News & General
Topic: Stop contributions to retirement accts due to future RMDs
Replies: 77
Views: 5759

Re: Stop contributions to retirement accts due to future RMDs

What an investor should do nowadays is different from what an investor should have done previously. I never had an option NOT to contribute to my 401k while I was employed. And I never had a built-in employer arranged Roth option in that 401k. And since I stayed employed right up til the year I had ...
by Garco
Mon May 04, 2015 11:53 am
Forum: Investing - Theory, News & General
Topic: Best Time of Year to Rebalance Portfolio?
Replies: 54
Views: 4362

Re: Best Time of Year to Rebalance Portfolio?

Deadwood wrote:I find rebalancing each year on my birthday works well :happy

So your birthday works well, eh? Would you mind sharing the date with the rest of us? :wink:
by Garco
Mon May 04, 2015 10:02 am
Forum: Investing - Theory, News & General
Topic: Best Time of Year to Rebalance Portfolio?
Replies: 54
Views: 4362

Re: Best Time of Year to Rebalance Portfolio?

My approach is totally subjective but also "behavioral." By reserving the end of year as the time when I rebalance, I reduce the chances that I will fiddle around with my allocations in response to short-term news or random shifts in the marketplace (I do follow the financial news). By and...
by Garco
Sun May 03, 2015 11:35 am
Forum: Investing - Help with Personal Investments
Topic: Will I want to/need to annuitize assets at TIAA-CREF?
Replies: 16
Views: 799

Re: CREF Stock v. Fidelity Spartan 500?

To the OP, I think you have a "defined contribution plan," not "defined benefit plan." I agree with the Wizard. Also, cost aside, you should also realize that CREF Stock is about 30% international, so it can't be directly compared with straight U.S. only portfolios (S&P 500 o...
by Garco
Fri May 01, 2015 7:28 am
Forum: Investing - Theory, News & General
Topic: Retirees - What would you have done differently?
Replies: 48
Views: 6860

Re: Retirees - What would you have done differently?

At age 47 (2010), I had been retired for 2 years. So, I wouldn't have done anything differently to mess that up. :happy I was a full Professor by age 40- then I spent the next 17 years trying to convince people that it really was a job. :happy Anyone who thinks a tenured professor doesn't have a jo...
by Garco
Thu Apr 30, 2015 2:23 pm
Forum: Investing - Help with Personal Investments
Topic: Total beginner needs advice
Replies: 16
Views: 2046

Re: Total beginner needs advice

The statement above that international has underperformed "lately" is incorrect. Of course this may depend on what "lately" means. I have 25-35% of my equities in international: VTSNX and other broad based international funds.
by Garco
Thu Apr 30, 2015 11:27 am
Forum: Investing - Theory, News & General
Topic: dollar cost averaging at present high price levels
Replies: 22
Views: 2904

Re: dollar cost averaging at present high price levels

Stifle those suicidal thoughts. When I reflect back on what happened to the stock market over my DCA course, from 1975 to 2014, I know that there was nothing better that I did financially than stay the DCA course. Never mind that it was my employer who kept me to the straight and true course. In mid...
by Garco
Wed Apr 29, 2015 10:36 pm
Forum: Investing - Theory, News & General
Topic: Retirees - What would you have done differently?
Replies: 48
Views: 6860

Re: Retirees - What would you have done differently?

When I was 47, I was at the busiest stage of my career. I had a good DC retirement plan, contributing 15% per month of a constantly increasing salary. I never changed my asset allocation. I had two kids who would be going to college within the next 10 years, and I was putting money away for that. No...
by Garco
Tue Apr 28, 2015 9:42 pm
Forum: Investing - Help with Personal Investments
Topic: Asset allocation portfolio program with TIAA CREF?
Replies: 8
Views: 469

Re: Asset allocation portfolio program with TIAA CREF?

Thank you! I'll try that. It also couldn't work for CREF Bond Market and CREF Social Choice. The X-ray version I used was the one you get with TD Ameritrade. I don't know if that makes a difference. If you "don't know," why not go directly to the M* website and find out? I can assure it i...
by Garco
Tue Apr 28, 2015 8:57 pm
Forum: Investing - Help with Personal Investments
Topic: Asset allocation portfolio program with TIAA CREF?
Replies: 8
Views: 469

Re: Asset allocation portfolio program with TIAA CREF?

sawhorse wrote:
dodecahedron wrote:Ticker for TIAA real estate is QREARX.

Yes but it doesn't work in the X-ray.


Try it again. It works for me in M* Instant X-Ray.
by Garco
Tue Apr 21, 2015 2:32 pm
Forum: Investing - Help with Personal Investments
Topic: move retirement plan from VALIC to Vanguard ?
Replies: 4
Views: 475

Re: move retirement plan from VALIC to Vanguard ?

Definitely, a switch to Vanguard or Fidelity is in order. Your friend can probably create approximately equivalent and approximately cost efficient portfolios in either one. A question is whether both the VG or Fido plans offers access to investments from other companies, and which funds -- in TRP, ...
by Garco
Tue Apr 14, 2015 9:52 pm
Forum: Investing - Help with Personal Investments
Topic: Raiding Taxable to Max Out Tax-Deferred Space
Replies: 18
Views: 1287

Re: Raiding Taxable to Max Out Tax-Deferred Space

I think your broad strategy is reasonable, to pack cash into tax deferred. I would also especially pay attention to good opportunities to expand your Roth contributions, to reduce the tax hit that will surely come down the road. I'm not clear how many years you expect to be $50K in the hole. But it'...
by Garco
Sun Apr 12, 2015 3:46 pm
Forum: Investing - Theory, News & General
Topic: The $1 Million Goal: Source of Motivation or Discouragement?
Replies: 172
Views: 17415

Re: The $1 Million Goal: Source of Motivation or Discouragem

My parents bought a home for $39.5K in Los Angeles area in 1961 (yes, same reference point when they would have been very happy indeed if they'd been gifted with $1M while they still had 5 children to get through college). That house sold in 2013 for $875K. It wasn't beach property. But it was a gre...
by Garco
Sun Apr 12, 2015 2:56 pm
Forum: Investing - Theory, News & General
Topic: The $1 Million Goal: Source of Motivation or Discouragement?
Replies: 172
Views: 17415

Re: The $1 Million Goal: Source of Motivation or Discouragem

I don't understand the fascination with $1 million as a goal. Yes, it's a nice sum to have. But a million dollars ain't what it used to be, back when I was growing up in the 1960's and the TV show "Millionaire" was popular. A guy named Michael Tipton shows up on your doorstep out of the b...
by Garco
Sun Apr 12, 2015 12:40 pm
Forum: Investing - Theory, News & General
Topic: The $1 Million Goal: Source of Motivation or Discouragement?
Replies: 172
Views: 17415

Re: The $1 Million Goal: Source of Motivation or Discouragem

I don't understand the fascination with $1 million as a goal. Yes, it's a nice sum to have. But a million dollars ain't what it used to be, back when I was growing up in the 1960's and the TV show "Millionaire" was popular. A guy named Michael Tipton shows up on your doorstep out of the bl...

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