Bogleheads.org

I would agree with the basic premise of Rick statement. A conservative approach to using the term would be to limit it to all or part of the Morningstar style box that is often referred to. So, for domestic: Large cap, Mid Cap, Small Cap (or all cap), Growth, Value or blend. You could look at intern...

I too agree that the Stable Value does not pay enough to switch. My wife and I both have stable value funds - Hers pays about 4%, mine about 3.5%. We use a mix of TIPs, older I-bonds, Total bond and Stable value. Stable value is our largest holding - our average age is 60. Our AA is about 45/55.

While I would agree with Mr. Bogle, some historical context would be helpful. Note that while the reference is to 401(k)s, 403(b)s for non profits, and 457(b)s for government employees are similar. From EBRI: Congress acted in 1986 to replace the defined benefit plan for federal civilian workers (CS...

I second The Only Investment Guide You will Ever Need. Without listing them it probably has at least 5 of the Boglehead principles at its core.

I've been checking daily lately so this thread is telling. The only thing is, I'm dollar cost averaging in an account so I want the market to go down. But if it goes down I lose much more in my other accounts . I guess I'm unhappy no matter what.

Estate Planning was the main topic of a MN Boglehead meeting about a year ago. No attorneys were mentioned by name but the following might be a starting point:

Lawhelpmn.org The link is http://www.lawhelpmn.org/issues/seniors ... and-trusts

I was just finishing grad school when I turned 30. My best guess would be about age 35.

retiredjg wrote: Peter Foley wrote: I think your stocks are a little too weighted toward large cap. How do we know that? I realize it might be right there staring me in the face, but I don't see that.... Percentages are lacking to determine the exact make up of the portfolio. I admit I guessing base...

I think 60/40 is a good AA for someone your age. You rode through the last couple years of market upswing at 70/30. Count your blessing on your moderately aggressive approach and scale back with a smile. You did great. Your holdings are fine. I would do things just a little differently, but I'm reco...

Sorry I didn't get back to you earlier. With a 3% yield your stable value is a better bet than the PIMCO bonds. I wouldn't use it exclusively for non equities, but certainly for half. I think retiredjg's set up is fine. If you are considering leaving the system early (before age 55) the 457 account ...

I think one needs a little experential learning. Sometimes it takes the pain of one's own mistakes to learn a lesson well. That's how I finially settled on index investing. I recently got an e-mail from my daughter who wanted to know if I could teach her and her husband how to make some money every ...

Do you know what your Stable value options are currently paying? They are an alternative to the PIMCO Total Return. Be sure to look at both your retirement accounts as a single portfolio so you can pick the best options available to the two of you. I would definitely include some international - it ...

I'm not sure I want to become a Wiki editor, so I will post an additional subject for the outline. Under the taxes heading: Understanding marginal tax rates and their implications. This is a very complex topic that is related to others such as: "When to take SS?" "Should I do Roth con...

While I did read through, it is almost too complicated to follow. I too would counsel some simplification. Regarding Schwab: $80 is not much if you make only a couple large purchases. Schwab also has it own funds that are as low cost as Vanguard. My basic advice, other than simplification, would be ...

neurosphere

If you send me a PM I can send you PowerPoint as an attachment and you can take it from there. I don't know if I can attach a file to a PM or if I will need you actual e-mail address.

It is not entirely clear to me where you are holding the discretionary funds that you expect to draw from over the next few years. If everything is in tax deferred it doesn't make much difference, but if you are holding Wellesley in taxable, there is probably a more tax efficient approach available ...

So is the Financial Literacy Project a comprehensive approach to personal finance or is it intended to emphasize the a "Bogleheadish" (low cost, do it yourself) approach to investing? As I read the linked document this is quite ambitious. (I'm not saying that it lacks merit, I just don't u...

If your desire is to move toward a 3 fund portfolio, I would start the process with new contributions. Based on your tax rate I would hold the target 2040 in taxable until such time as I could convert it to an all equities portfolio in taxable without incurring much in additional taxes. While there ...

I suggested the same topic as a question for Mr. Bogle. What is your opinion of stable value funds in this environment?

While I do not consider myself an expert, I have read a number of articles on withdrawal rates and withdrawal rate strategies. While I find their conclusion interesting, I do not think it is very actionable. The requirement that when their single monthly indicator is positive that a portfolio be 100...

Twins fan As a state employee in Minnesota I had only the 457b plan available. I was also able to use the 50+ rule and the catch up provision. My wife worked for the U of M and had both a 403b and a 457b available. She did not have the 50+ rule available nor the catch up provision available in her 4...

I have a couple different PP presentations that I would be willing to share. One is an intro that we have used for the MN Bogleheads meetings. The other is a 45 minute presentation that I did at a conference.

While I do not know the specifics of your case I do know that the employer can choose options with respect to 457b plans. In my wife's plan there was no option to use the catch up provision a few years prior to retirement. In my plan, I could.

With respect to taxation, yes, you are holding your assets in the correct accounts. Bonds should go in tax deferred or Roth to avoid paying yearly interest at ordinary tax rates. Equities belong in taxable to take advantage of the lower long term capital gains rate. You are well diversified and have...

I just read the brief description of the approach on the Wiki. I can say that I find it intriguing. Using a 7.5 year bond set aside "bucket", does allow for smoothing if you are trying to withdraw the same percentage each year.

While some of the back and forth here is interesting*, the key fact I see that affects the decision is the part time income. $30,000 in part time income is no small amount and the Social Security benefits collected by the spouse will be taxed. This will create a higher tax rate than the couple might...

Bobbybell and MNfinance Our method may be cumbersome and our understanding of MN's inheritance laws may be imperfect, but we are getting it done. What we are actually doing is gifting appreciated mutual fund shares to our daughters within the annual gifting limits. Our daughters are well below the 2...

I disagree with Dave Ramsey as one size does not fit all. (Bestwishes points this out as well.) 1.Homeowner's/Renter's Insurance - Yes 2.Auto Insurance - Yes 3.Health Insurance - Yes 4.Disability Insurance - Not if retired . 5.Long-Term Care Insurance - At a certain asset level one can self insure, ...

I too use about 10 funds - but for cost reasons associated with some funds in our deferred accounts. I personally would not choose a three fund option, but I could probably go with 4 or 5: Total U.S. Stock Market, Total International Stock, Total Bond, TIPs, and Stable Value. As you can see my prefe...

While you do not want to pay off your mortgage, you might consider doing some regular extra principal payments. Think of it like investing in a bond fund with a higher guarranteed return. I agree with the 70/30 approach and also the suggestion to put some of the money into Roths over the next couple...

We did a VRBO rental in the Barceloneta neighborhood. It was about 4 blocks from the metro and 4 blocks from the beach. About 8 blocks from Las Ramblas. It was fine if you don't mind walking. For anything distant we took the metro. It was less than $100/day (dollars, not Euros) for a one bedroom apa...

I would agree there is no precise ratio that is ideal. Savings should be allocated to taxable, tax deferred and tax free based on current and anticipated future tax rates and the number of years that the savings will be invested. As one approaches retirement I think 1/3 tax deferred, 1/3 taxable and...

While many will recommend the Louve, it is really overwhelming. I would limit my visit to 1/2 day and make a list and study up on the few artists and pieces that you really want to see. Just looking at the paintings and sculptures is not particularly rewarding (IMHO) unless you know something about ...

Landy and I took similar approaches: Landy wrote: 1. We are urged (I do it) to select the overall portfolio risk based on "Ability and Need" for risk. 2. Additionally, we have the psychological factor called "Willingness."•I turned 55 in 2007, so our Asset Allocation was notably ...

When I was accumulating I was doing periodic investing so I bought at all levels. I'm now funding a couple 529 plans. I am having my daughters invest the same amount every other month for the next year. Last week was the first buy. I tell myself that future buys will be higher (that's good) or lower...

We, the grandparents, are funding the plans. We are gifting the money to our daughters who are the owners of the plans. Reason: Minnesota has a fairly low inheritance tax and my wife and I want to get some of our assets out of our names.

I invested for my kids through Charles Schwab. Many of their proprietary index funds have a $100 minimum initial investment. I used the Schwab 1000 fund as it was a little broader than their Index 500 fund. They also have a Total Market fund.

Everything depends, of course, on when you bought in and why. If you have been using utilities as an income source for a few years you are still ahead of the game. The price appreciation was a nice bonus but it wasn't necesarily the reason many individuals purchased utilities to begin with. TIPs are...

I think you have done a good job. You could simplify the taxable holdings a bit as very small allocations don't help much in terms of diversification or overall return. (But you have a good plan and really don't need to do anything.) In response to your questions #4. I think the answer is yes but I ...

I did my own research for my grandchildren's 529s and came up with a similar list. Mr. Roth had more detail, which I appreciated. We went with the Wisconsin plan for our daughter who lives in Wisconsin and the NY plan for our daughter who lives in Minnesota. While I would agree that the NY plan we c...

I did this for a number of years in the 1990's. I had an automatic tranfer set up from my bank account to my brokerage and then an automated purchase. At that time we were paid twice monthly so purchases were made about the 1st and the 15th of every month. It worked really well in the 90's (of cours...

I have a defined pension and yes it did affect my AA. I recall having read something many years ago that stated that you could characterize your pension as a bond equivalent and therefore invest more aggressively. I did so and took quite a hit when the tech bubble popped in 2000. I was 50 at the tim...

Not all "as is" clauses are bad. As a buyer I offered the seller an "as is" clause when I made a below market cash offer. The offer was subject to inspection. My Realtor (and I) have both rehabbed houses in the past so, together with inspector, we felt we knew what we were gettin...

Many people are worried about non equities because of the historic low interest rates. I have never seen Mr. Bogles quoted regarding stable value funds. Perhaps the question could be: Are stable value funds a safe alternative to total bond funds? Or: Do you see a role for stable value funds as a div...

So you are going to withdraw $380k from taxable. Do you have a tax deferred account as well? If you have other assets that you will use for income in retirement that would likely change the advice you would get. If you do have other retirement savings, I would not go the route you suggested initiall...

With rare exceptions you lose money every time you sell a car and buy a new one. With that in mind I would suggest not trading too often. Do trade before you hit significant repairs on a car that is not worth repairing, however. That leaves one of two options: 1. Your option 2. 2. A variation on you...

In defense of the OP, this is a valid question as posed. Calculating what you need in retirement changes depending on your stage in life. As you are nearing retirement, the calculations should be done based on expenses. However, when you are young and just beginning to save for retirement, how do yo...

This is a subject that is often debated. In the discussion I think it is critical to have the same starting point. If the starting point is taxable income, you might need closer to 100%. You will save some money by not commuting, not eating lunch out (if you did so regularly), and if you regularly s...

At your age I would recommend an AA of about 60/40. You should have 2-3 equity funds/ETFs and a couple bond funds/ETFs for adequate diversification. I would advise against taking "regional" positions as you have done with your powershares. I would start with scientifics approach and maybe ...

Johm221122 wrote: You have to make an educated guess at what income you will have at retirement, the Roth only makes sense if you will be in higher tax rate at retirement. Most people are in lower tax rate in retirement.Nobody knows future, but at a safe withdraw rate you need a larger than average ...