Bogleheads.org

US and international markets go up and down and not necesarily in sync. Because of that, year to date and 12 month returns don't offer realistic bases of comparison.

There is nothing wrong with using a stable value fund as a portion of your fixed AA. Are the fees for that investment reasonable?

I think a reasonable approach would be to try to get him to read the Trinity Study on the Wiki. A conclusion that can be drawn from that study is that you need some stocks. Moving back into stocks at the rate of 1% to 2% per month until he gets to at least 30% is an easy approach psychologically.

I have had sore knees in the past and have found that running with new shoes and an elastic knee band are all I need. A store that specializes in running shoes can be a big help in fitting you to your weight, distance and stride. I'm 62, I've been running year-around for about 30 years and run 3 tim...

I "strayed from the course" during the 2008-9 recession. I was rebalancing as the market fell at about every 200 S&P point drop (my bands). I rebalanced at S&P 1000 on the way down but just could not when it dropped to 800 in the spring of 2009. I was going to be eligible for retir...

While I believe that helping the next generation get through college w/o too much debt is an admirable goal, I think the parents should take the lead. I would think a priority for a newly married couple living with friends would be saving for a house. You will want to have about 20% down so you can ...

texas driver Good point, I had read the article but had not done the math on the basic premise. I think SS income is assumed, but the withdrawal rate would still be too high to be sustainable. Including SS I estimate that $60,000/year needed, about 1.5M. About double their 8X final income. here is a...

I like your second version better than the third. If I am correct in my assumption that you will be in the 15% bracket, you should be using a combination of capital gains and 457 funds to cover your expenses. With this approach leaving some equites in your 457 will allow for the possiblility of slig...

You have covered the basics quite well. Putting some of your life's goals into the IPS is helpful in terms of motivation to stay the course. If you intend to use low cost index funds to reach your goals I would specify that that is indeed your approach. You could add something about trying to have s...

My suggestion would be to lay out a plan based on keeping yourself in the 15% tax bracket. $36,250 in taxable income is the top of the 15% bracket. At a minimum you get a $3,900 personal exemption and the standard deduction is $6,100. So your income can be about $46,000 and still be in the 15% brack...

I think the discussion regarding "income floor" and "protecting assets" is also related to the timing (and sometimes necessity) of one's retirement. I wanted to retire around age 60. For me that meant becoming more conservative as I approached that age so as not to have to contin...

I've sold my last two cars using Craigslist, prior to that I used Car Soup. While I would agree that it would be risky to go along on a test drive alone, it isn't necessary to go on the test drive. As mentioned, just have them leave their car keys and driver's license. Meeting in a public place is a...

Perhaps I'm being confused by the wording of the poll. With many individuals not saving for retirement, they will not be affected by Roth or TIRA. Their taxes in retirement will be low because they have little in assets and SS is their only income in retirement. Is this the average American? If the ...

Saving 15% of income is the level often recommended.

Sam I am wrote Wife and I have had a pretty blessed life thus far. Our children are grown, all college educated. What worked for us was purchasing prepaid tuition plans. Now I've turned my attention to the grandchildren. I know that retirement could be more difficult for my children, given the fact ...

Excellent choices. This is fine. I like the comment about dancing on the head of the pin. While I think this is perfect in terms of balance and simplicity, others might recommend changes that represent slightly different philosophies in terms of bond allocation and international. What you are propos...

Stash First, welcome. You are asking a good question, one that has some subtleties to be sure. In addition to the general contribution order provided by kmok, you might factor in your tax bracket. I would contribute to the 401k to the extent that you lower your taxable income to the point you are in...

The following is from the Bogleheads Wiki: The relevant income for Social Security taxation includes all items which are normally part of your adjusted gross income, plus tax-exempt interest income, plus 50% of your Social Security benefits. (Historically, the 50% represents the fact that half of yo...

I think age in bonds (or average age of the two of you) is a good starting point. It is conservative by nature, and in your situation you should be more concerned with conserving buying power than with growth. Thinking long term, I don't think you should let your equity ratio drop below 30%. That is...

Mine is out there as a link from the wiki page to a thread where I included it. As I read it today, it was written in 2009, it is still pretty accurate except that I delayed retiring by about a year and my wife then retired at the same time. In retrospect I think my AA is a bit more conservative tha...

I retired at about the right time. While I could have stuck it out for another year or so I was pretty bored with the daily grind. I honestly felt I was not adding as much value to the organization as a person coming up the ranks who would be my replacement. I was right. Reports are she is doing ver...

I don't think this should concern the average Boglehead. Investing in start ups, private companies going public with stock offerings and "private equity" offers are all relatively high risk. While we might miss some opportunities to get on the bottom floor for big gains, we will also avoid...

I'd like to add my thanks as well. It is really a wonderful resource. Noting the number of edits, it is also a lot of work to keep it up to date.

Frankjuka Welcome. I doubt that you are crazy, I just think you might be posting to the wrong web site. Note the line at the top, "Investing Advice Inspired by Jack Bogle." Most of us here believe in having a plan that involves broadly diversified investing using low cost mutual funds and ...

Thanks Kenyon - the updated plan information from Wisconsin certainly makes it worth considering. The fees are much lower than the information I found on line. I don't see any mention of different share classes and loads which makes the fees easier to compare across plans.

Rich - When you did your analysis did you factor in the effect of tax rates? Off chance, do you know what your tax rate will be when you start taking RMDs? When I look at the breaks of being in the 15% bracket (as gerrym51 concluded) I decided to manage my income to stay within that range for a numb...

I'm 62 and I remember the same assignment/contest in high school, best guess 1967 or 1968. I remember picking a couple things I recognized as companies (Avon was one) as well as a couple companies where I liked the name and knew nothing about them. I think we had to hold our original picks as I don'...

I am in the process of learning about 529 plans so that I can help my two daughters set up plans for their children. After reviewing a number of the state plans I admit to being shocked at the fees that are charged, in some cases both up front fees and ongoing fees. Our plan is to gift the money to ...

The returns on stable value funds have been dropping on the 3 funds we hold, but the drop has not been horrible nor has it been hidden. Current accounts are at 4.25%, 4.00% and 3.5% depending, in part, on when the money was invested in the fund. Each quarter we get a statement that shows the interes...

Wizard and I are on the same page, I retired 368 days ago . . but who's counting? Because I have a bit more than I need I can afford to let my AA be more conservative than most would advise. The run up over the past year has certainly helped. If there were a severe market downturn I'm sure I would a...

Bob's not my name wrote: If your estate is far larger than you will need, then planning for your heirs comes into play. In this case your estate must be well over $1M and you may have a state estate tax to consider. Roth conversions can be a good estate planning tactic, because they reduce RMDs, red...

One consideration that favors a government 457 plan is the ability to take money from the plan without penalty should you decide to retire early. Both my wife and I had 457 plan options and we both used them. The fees in our plans were quite reasonable. I retired a year ago in May. Because it was on...

For this year we are definitely higher. I've been retired exactly 365 days. However, this year is not indicative of a regular year. We upgraded both our vehicles (from 8 years old to 3 years old for one and from 14 years old to 1 year old for the other) and took trips to Alaska and Europe. These tri...

Are you single or married? Do note that a conversion adds to your taxable income and that is the number you should be aware of. If you have $70,000 in gross income your taxable income could be much less. Subtract out any 401k contribution, subtract your exemption(s) and your standard deduction (or i...

I would agree that you could simplify. I would suggest keeping the inflation protected securities fund VIPSX just to maintain some inflation protection on the bond side. For me, the three you propose plus the TIPs fund would be my ideal portfolio.

There is a roadhouse about 10-15 miles outside of Savannah that serves great shrimp and french fries; more than you could possibly eat. I don't remember the name of it but I'm certain locals would know of it. When I was there I ate at a couple of the restaurants along the riverfront - they were fine...

If you are in the 25% tax bracket or higher I would use the Vanguard Intermediate term tax exempt as a bond fund in taxable.

Within a retirement account (401k, IRA, Roth) transactions are not taxable events - either gains or losses. The only potential disadvantage to a short term trade is that the fund in which you have invested might have a redemption fee to discourage taking short term positions.

longhorn

Think of it this way, if you have some money in bonds you will have a source of funds from which to someday buy stocks when they are on sale. Losses in an equity downturn are much greater than they have been in Total Bond Market when it has a bad year.

I would suggest delaying at least a couple years, possibly until age 70. Keeping your income relatively low now might allow you to take some long term capital gains with no taxes. In addition, you may be able to do Roth conversions. The Roth conversions will provide you with more spendable income la...

A model that tries to predict how much you can spend each year until death? My goodness, how could one possible account for life's unknows as well as market scenarios? My plan/model is much more modest. I'm 62, retired for 1 year, and anticipate taking SS at age 67. My model is intended to create a ...

Richard wrote: Peter Foley wrote:Bobcat2 I agree that there are 30 year time periods where stock do not do as well. This does not, however, refute the Trinity Study which shows that in the past (not the future mind you) a portfolio containing more stocks than bonds has a higher probability of succes...

I will try to be less snarky. You are making this too complex, expecially for the level of assets you have. One rule of thumb is to not hold positions of less than 5% because they have little impact on diversification or return. I also advise that diversification is fine, but you don't have to do it...

I agree with earlier comments that an IPS should include both the how and the why. It should also be specific enough to act on. For example: "I want to retire by age 60." does not tell you much. My goal to retire by age 60 will be achieved by investing 15% of my salary each year in a defer...

Three books have been highly influential in my life - although they impacted different facets: The Only Investment Guide You Will Ever Need - Tobias Investing 1984 - Orwell government and technology Lazarillo de Tormes - Anonymous (The first Spanish picaresque novel) social issues and class struggles

Thanks Teacher. It is indeed helpful to have it all in one place.

Bobcat2 I agree that there are 30 year time periods where stock do not do as well. This does not, however, refute the Trinity Study which shows that in the past (not the future mind you) a portfolio containing more stocks than bonds has a higher probability of success over 30 year periods based on a...

I had one experience with a financial advisor who wanted to manage my money. He showed me where I was invested and then showed me a sample portfolio of what they recommend to investors. His sample had a higher return. Then it occurred to me, at any point in time I could create a sample portfolio tha...

First welcome. You are doing really well in terms of living below your means and you have made some very good choices with respect to broadly diversified low cost investments. One minor point, positions of less that 5% don't really have much impact on your overall portfolio in terms of diversificati...

Wagnerjb wrote It is all in how you define risk. If you define risk as "the likelihood that stocks will underperform bonds", then historically the "risk" of stocks has diminished with time. If your alternative investment is bonds, then I would think this risk is pretty important ...