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Re: Dollar Cost Averaging vs. Lump Sum

Never DCA if you don't have to. It's pretty much that simple. A good way of putting it! The germ of truth about which so many barnacles encrust themselves is that geometric vs. arithmetic averaging of paycheck-to-paycheck investing does help, but the only help is that it makes up for a tiny bit of ...
by bertilak
Tue Sep 02, 2014 9:47 am
 
Forum: Investing - Theory, News & General
Topic: Dollar Cost Averaging vs. Lump Sum
Replies: 30
Views: 2797

Re: What Book Are You Currently Reading? Part V

And I have never ever ever been able to figure out whether "I knew that the only total eclipse of the sun in the first half of the sixth century occurred on the 21st of June, A.D. 528, O.S., and began at 3 minutes after 12 noon" is a joking reference to improbabilities in other books--may...
by bertilak
Tue Sep 02, 2014 7:54 am
 
Forum: Personal Consumer Issues
Topic: What Book Are You Currently Reading? Part V
Replies: 3277
Views: 1116853

Re: 2 Piece Retirement Portfolio

John and Bertilak, I agree that this plan contains a floor and an upside strategy that aims for maximum returns. Starbux has the ability to take that much risk, but he doesn't have the need, which is always the case for those who have ability. If the plan flops he may miss out on doing things he'd ...
by bertilak
Mon Sep 01, 2014 12:52 pm
 
Forum: Investing - Help with Personal Investments
Topic: 2 Piece Retirement Portfolio
Replies: 18
Views: 1063

Re: 2 Piece Retirement Portfolio

Starbux's approach is similar to the safe floor and and aspirational portfolios plan, even though his "safe" part isn't quite as safe as an ideal.

This is an effective and honorable kind of plan.
by bertilak
Mon Sep 01, 2014 11:53 am
 
Forum: Investing - Help with Personal Investments
Topic: 2 Piece Retirement Portfolio
Replies: 18
Views: 1063

Re: What Movie Have You [Recently] Watched?

The Lego Movie. We found it surprisingly good. Perhaps I should say "Awesome!" to keep in the spirit of the movie. It is one of those "made for children but with lots to keep adults entertained" movies. It makes you wonder if you really are an adult! I would NOT recommend it for ...
by bertilak
Mon Sep 01, 2014 9:26 am
 
Forum: Personal Consumer Issues
Topic: What Movie Have You [Recently] Watched?
Replies: 58
Views: 2005

Re: 2 Piece Retirement Portfolio

Why not have combine the 2 plans into 1 and go 60/40 Keep It Simple :happy Actually, I agree with StarBux. ⋅ First, the two portfolios may not be the same size so it doesn't necessarily add up to 60/40. ⋅ Second, he accepts more volatility in one than the other (i.e. 70/30 vs 50...
by bertilak
Mon Sep 01, 2014 9:09 am
 
Forum: Investing - Help with Personal Investments
Topic: 2 Piece Retirement Portfolio
Replies: 18
Views: 1063

Re: What Book Are You Currently Reading? Part V

A Connecticut Yankee in King Arthur's Court by Mark Twain. I mention it because of the following quote: No sound and legitimate business can be established on a basis of speculation. Mark Twain was notorious for making bad investments so I'm not sure what to make of this advice! The book was writte...
by bertilak
Sun Aug 31, 2014 2:47 pm
 
Forum: Personal Consumer Issues
Topic: What Book Are You Currently Reading? Part V
Replies: 3277
Views: 1116853

Re: REIT

Funkey, If you believe REITS will somehow outperform overall stocks over your investment time horizon, then add them to your allocated equity position, definitely not bonds. But keep in mind that the millions of investors who actually determine market prices have already determined the value of REI...
by bertilak
Sun Aug 31, 2014 10:59 am
 
Forum: Investing - Help with Personal Investments
Topic: REIT
Replies: 12
Views: 784

Re: Style Box breakdown of U.S. companies

The distribution is based on the definition. Morningstar defines the stock market to be 70% large-cap, 20% mid-cap, 10% small cap, and split evently between value, core, and blend, so the style box for a fund which holds everything except a few micro-caps must look like this. Yes, you are right. I ...
by bertilak
Sat Aug 30, 2014 3:08 pm
 
Forum: Investing - Theory, News & General
Topic: Style Box breakdown of U.S. companies
Replies: 5
Views: 355

Re: Style Box breakdown of U.S. companies

Vanguard's Total Stock Market fund (VTSAX) has the following Morningstar style chart. It is taken from Morningstar's page for VTSAX (http://portfolios.morningstar.com/fund/summary?t=VTSAX). It should be representative of all US companies.

Image
by bertilak
Sat Aug 30, 2014 2:49 pm
 
Forum: Investing - Theory, News & General
Topic: Style Box breakdown of U.S. companies
Replies: 5
Views: 355

Re: Costco:is it worth it for just two people?

We often walk in after buying gas and purchase nothing but just get free samples of the food. We call that the "Senior Buffet." There are just two of us and we have an executive membership that more than pays for itself AND it makes shopping easier since I am now at the point where I assu...
by bertilak
Sat Aug 30, 2014 11:32 am
 
Forum: Personal Consumer Issues
Topic: Costco:is it worth it for just two people?
Replies: 110
Views: 6382

Re: ACH transfers

I'm just guessing, but I suspect the transfers don't happen instantaneously. The daily transactions are probable all held in a queue and processed together in a nightly batch processing job. At least that's the way we used to do it in ancient days before I retired. It wouldn't surprise me if lot of...
by bertilak
Sat Aug 30, 2014 11:19 am
 
Forum: Personal Finance (Not Investing)
Topic: ACH transfers
Replies: 14
Views: 992

Re: Withdrawl from Target Retirement or Life Strategy Fund

So the only way to have a safe floor is with an inflation annuity or a ladder of TIPs. Is there another way to have a safe floor? Paul See my edit about "a way of looking at things." One possible way to deal with inflation is to buy an SPIA to cover just the nominal shortfall in your safe...
by bertilak
Fri Aug 29, 2014 4:03 pm
 
Forum: Investing - Help with Personal Investments
Topic: Withdrawl from Target Retirement or Life Strategy Fund
Replies: 47
Views: 3602

Re: Withdrawl from Target Retirement or Life Strategy Fund

So if the 5 years of cash is outside of the portfolio is that equal to having a "safe floor"? Thanks Paul That's more like a really big (probably too big) emergency fund. I say too big because there are probably more productive ways to put that money to use. A "safe floor" is (o...
by bertilak
Fri Aug 29, 2014 3:47 pm
 
Forum: Investing - Help with Personal Investments
Topic: Withdrawl from Target Retirement or Life Strategy Fund
Replies: 47
Views: 3602

Re: is a target date fund considered indexed

Being indexed or not is not an inherent property of a Target Date fund.

Vanguard's target date funds are made up of four existing index funds. Other companies probably differ.
by bertilak
Fri Aug 29, 2014 1:31 pm
 
Forum: Investing - Theory, News & General
Topic: is a target date fund considered indexed
Replies: 11
Views: 623

Re: Withdrawl from Target Retirement or Life Strategy Fund

I've been thinking about this issue recently, because it would be nice to just have one fund in retirement. Should I be concerned that there doesn't appear to be a consensus answer? There is a concept called liability matching. This is where you figure out two spending levels: ⋅ A spendin...
by bertilak
Fri Aug 29, 2014 9:11 am
 
Forum: Investing - Help with Personal Investments
Topic: Withdrawl from Target Retirement or Life Strategy Fund
Replies: 47
Views: 3602

Re: Bad(?) advice given about Target Date Retirement funds

Although we all agree that for the average Boglehead, buying the 4 funds inside the TR funds, getting the admiral shares, rebalancing yourself, keeping the ones that create the most taxable events in your tax-advantaged accounts, is the best way to go. I'm not sure we all agree with that. I know I ...
by bertilak
Wed Aug 27, 2014 4:58 pm
 
Forum: Investing - Theory, News & General
Topic: Bad(?) advice given about Target Date Retirement funds
Replies: 103
Views: 6378

Re: Bad(?) advice given about Target Date Retirement funds

if someone disagrees with the fund managers' assumptions about risk tolerance and appropriate AA at age 30 or 35, there is no reason to expect that the disagreement over risk tolerance and AA would automatically disappear at age 60 or 65 simply because of the passage of time. Right, That is why you...
by bertilak
Wed Aug 27, 2014 4:45 pm
 
Forum: Investing - Theory, News & General
Topic: Bad(?) advice given about Target Date Retirement funds
Replies: 103
Views: 6378

Re: Bad(?) advice given about Target Date Retirement funds

toto238 wrote:The average person would be better served to put everything into a TR that matches the year they want to retire...

Agreed and that's the whole point of my original post -- the advice that is often given is not to do that!
by bertilak
Wed Aug 27, 2014 4:43 pm
 
Forum: Investing - Theory, News & General
Topic: Bad(?) advice given about Target Date Retirement funds
Replies: 103
Views: 6378

Re: Bad(?) advice given about Target Date Retirement funds

A couple of points (from me, the OP): ⋅ I never said buying and holding a TR fund was bad advice. I actually said it was good advice for some investors. The bad advice is in recommending that the investor ignore the target date. This advice is bad because it puts one on the wrong part of ...
by bertilak
Wed Aug 27, 2014 4:26 pm
 
Forum: Investing - Theory, News & General
Topic: Bad(?) advice given about Target Date Retirement funds
Replies: 103
Views: 6378

Re: Bad(?) advice given about Target Date Retirement funds

....If you pick ANY of the Vanguard TD funds that is NOT at its starting AA of 90/10 you are putting yourself on a glide path that will immediately start to change your carefully selected AA. The "normalcy" or lack thereof is not a relevant issue and I make no claim about it. I do say tha...
by bertilak
Wed Aug 27, 2014 3:26 pm
 
Forum: Investing - Theory, News & General
Topic: Bad(?) advice given about Target Date Retirement funds
Replies: 103
Views: 6378

Re: Bad(?) advice given about Target Date Retirement funds

....If you pick ANY of the Vanguard TD funds that is NOT at its starting AA of 90/10 you are putting yourself on a glide path that will immediately start to change your carefully selected AA. The "normalcy" or lack thereof is not a relevant issue and I make no claim about it. I do say tha...
by bertilak
Wed Aug 27, 2014 3:11 pm
 
Forum: Investing - Theory, News & General
Topic: Bad(?) advice given about Target Date Retirement funds
Replies: 103
Views: 6378

Re: Bad(?) advice given about Target Date Retirement funds

If advocating for buying and holding a TR fund might be giving bad advice(I don't think so.), why wouldn't it be just as bad to recommend buying and holding a Life Strategy fund that'e either too conservative, early on, or too aggressive later on? In each instance, the investor is better served by ...
by bertilak
Wed Aug 27, 2014 1:41 pm
 
Forum: Investing - Theory, News & General
Topic: Bad(?) advice given about Target Date Retirement funds
Replies: 103
Views: 6378

Re: Question on dividends

Say you are the sole shareholder of a corporation with $100,000 in cash as its sole asset. You decide to pay yourself a dividend of $10,000. Now the corporation has $90,000 of assets and you have $10,000 less the tax you pay on the dividend. Do you feel you are now further ahead? Gill It depends. I...
by bertilak
Mon Aug 25, 2014 11:33 am
 
Forum: Investing - Theory, News & General
Topic: Question on dividends
Replies: 15
Views: 1327

Re: What 5 stocks can I own forever?

Look at the holdings of all the Vanguard "Large Cap Value" funds. Maybe focus on those with "income" or "yield" in their name. See what companies they have in common. Here are most of them: ⋅ VEIRX Equity Income ⋅ VHDYX High Dividend Yield ⋅&nbs...
by bertilak
Mon Aug 25, 2014 10:16 am
 
Forum: Investing - Help with Personal Investments
Topic: What 5 stocks can I own forever?
Replies: 58
Views: 4436

Re: Google Chrome vs. Firefox and Internet Explorer

Did you try uninstalling chrome and then re-installing chrome ? Did you run AV and malwarebytes? Yes, I have done the AV and malwarebytes. No I did not try uninstalling chrome and then re-installing chrome. Guess I will just go with IE 11 and Firefox that do work. I would give uninstall/re-install ...
by bertilak
Mon Aug 25, 2014 9:53 am
 
Forum: Personal Consumer Issues
Topic: Google Chrome vs. Firefox and Internet Explorer
Replies: 24
Views: 1647

Re: Advice on asset allocation not quite entering retirement

Thank you bertilak. Our monthly expenses are covered by our business income and my current take home teacher pay which is $950/month. We will not need to touch the money in our ROTH's/401k's etc to pay monthly expenses. The mortgage on our commercial property is paid from the rent paid by our busin...
by bertilak
Sun Aug 24, 2014 8:34 pm
 
Forum: Investing - Help with Personal Investments
Topic: Advice on asset allocation not quite entering retirement.
Replies: 5
Views: 682

Re: Google Chrome vs. Firefox and Internet Explorer

Did you try the "forgot my password" link. I assume there is one, or something similar.
by bertilak
Sun Aug 24, 2014 8:24 pm
 
Forum: Personal Consumer Issues
Topic: Google Chrome vs. Firefox and Internet Explorer
Replies: 24
Views: 1647

Re: Advice on asset allocation not quite entering retirement

Dear Bogleheads, Here is my situation. I am 50 years old, wife is 46 and two kids, 8 and 10. I will probably retire from public school teaching in North Carolina at the end of this year with a reduced pension of ~$22,000 give or take $200. My wife and I also own two businesses that pay us a combine...
by bertilak
Sun Aug 24, 2014 8:11 pm
 
Forum: Investing - Help with Personal Investments
Topic: Advice on asset allocation not quite entering retirement.
Replies: 5
Views: 682

Re: WSJ/Zweig- The Decline and Fall of Fund Managers

Well said, MGator. I came across your post after posting something in a similar vein. My question is, since indexes are made up of individual stocks and indexes are valid only to the extent their component stocks are priced correctly by the market, will that pricing pricing become less efficient/re...
by bertilak
Sun Aug 24, 2014 2:15 pm
 
Forum: Investing - Theory, News & General
Topic: WSJ/Zweig- The Decline and Fall of Fund Managers
Replies: 21
Views: 2350

Re: Tipping tradespeople

I often tip helpers but not the boss man. It depends on several things: ⋅ How long or unpleasant the job was. ⋅ My perception of how hard they worked. ⋅ How often they needed to respond to unusual or unanticipated situations and how well they dealt with it. P.S. to my ...
by bertilak
Sun Aug 24, 2014 2:07 pm
 
Forum: Personal Consumer Issues
Topic: Tipping tradespeople [rain gutter installers]
Replies: 27
Views: 2335

Re: Tipping tradespeople

I often tip helpers but not the boss man. It depends on several things:

  • How long or unpleasant the job was.
  • My perception of how hard they worked.
  • How often they needed to respond to unusual or unanticipated situations and how well they dealt with it.
by bertilak
Sat Aug 23, 2014 7:32 pm
 
Forum: Personal Consumer Issues
Topic: Tipping tradespeople [rain gutter installers]
Replies: 27
Views: 2335

Re: No room on your Windows hard drive? Cleanup Update files

Thank you, LadyGeek, I am still using Windows XP, and I think the updates do not apply in my case. But I did install CCleaner yesterday and was amazed how much stuff it has found and removed. I also had a "learning experience." I had an old backup drive that I wanted to throw away. The pr...
by bertilak
Sat Aug 23, 2014 11:57 am
 
Forum: Personal Consumer Issues
Topic: No room on your Windows hard drive? Cleanup Update files
Replies: 47
Views: 3210

Re: Quicken 2015 for Mac released

I was a Quicken user from about 1997 to around 2011 or so. I bought an IMac and ended up switching from Quicken to Moneydance. Moneydance has served me well. It imports Quicken files and others. It has good reporting functionality and works well for investment tracking. I highly recommend it to any...
by bertilak
Fri Aug 22, 2014 12:23 pm
 
Forum: Personal Consumer Issues
Topic: Quicken 2015 for Mac released
Replies: 27
Views: 2599

Re: Do the mega wealthy need life insurance?

dhodson wrote:That's why the quote says if you are talking permanent insurance

My main point was in reference to the alternative -- investing over time. Doesn't work if your time is limited.
by bertilak
Thu Aug 21, 2014 4:20 pm
 
Forum: Personal Finance (Not Investing)
Topic: Do the mega wealthy need life insurance?
Replies: 32
Views: 2549

Re: Quicken 2015 for Mac released

I have a love/hate relation with Quicken.

Love because there is nothing else I am aware of that even comes close to doing the same thing.
Hate because they have taken my data hostage and seem to be getting sloppy with it.
by bertilak
Thu Aug 21, 2014 4:07 pm
 
Forum: Personal Consumer Issues
Topic: Quicken 2015 for Mac released
Replies: 27
Views: 2599

Re: Do the mega wealthy need life insurance?

If you are talking permanent insurance then likely you could have taken the premiums and invested them over your life in more liquid assets such as index funds and have more money available at death as well as not have to rely on death to get most of it. Doesn't work too well if your life is cut sh...
by bertilak
Thu Aug 21, 2014 3:40 pm
 
Forum: Personal Finance (Not Investing)
Topic: Do the mega wealthy need life insurance?
Replies: 32
Views: 2549

Re: A random walk...

baw703916 wrote:If the market follows a random walk, why don't returns follow a normal distribution?

What distribution do they follow?
by bertilak
Thu Aug 21, 2014 3:33 pm
 
Forum: Investing - Theory, News & General
Topic: A random walk...
Replies: 21
Views: 1677

Re: Why aren't annuities better than investment drawdowns?

If one is really worried about longevity, it is hard to argue against paying an additional premium for the inflation rider. The nominal annuity market is much larger than the inflation-indexed one. It is difficult for an investor to calculate the actuarial value of annuities, so he does not know wh...
by bertilak
Thu Aug 21, 2014 11:30 am
 
Forum: Investing - Theory, News & General
Topic: Why aren't annuities better than investment drawdowns?
Replies: 46
Views: 2909

Re: Vanguard Agent Authorization

Agent authorization isn't complete or adequate. I cannot view my wife's retirement accounts when I log into my Vanguard account. Similarly 529s can only have a single owner so not viewable from both accounts. One of my relatives depends on me to keep her accounts on track. I have agent authorizatio...
by bertilak
Thu Aug 21, 2014 11:20 am
 
Forum: Personal Finance (Not Investing)
Topic: Vanguard Agent Authorization
Replies: 40
Views: 2605

Re: About to Order my first Mini Cooper S

No automatic transmission (including DCT/DSG "double-clutch" types) can replace the sensation of manual transmission. They are more advanced, enable faster shifts, increase mpg a little but still they do not have the involved feeling of manual transmission. Agreed. I almost always had man...
by bertilak
Wed Aug 20, 2014 1:48 pm
 
Forum: Personal Consumer Issues
Topic: About to Order my first Mini Cooper S
Replies: 19
Views: 1209

Re: How the rich stay/get richer??

If Buffett is not a good example, imagine a hypothetical person who had $10M in BRK stock. They would be able to support a robust spending level without earning a dime in dividends. The more you have the less it matters. At $10M you will do OK no matter what. For those of us down here at ground lev...
by bertilak
Wed Aug 20, 2014 1:34 pm
 
Forum: Investing - Theory, News & General
Topic: [live off dividends?] How the rich stay/get richer??
Replies: 62
Views: 4931

Re: How the rich stay/get richer??

Aptenodytes wrote:Right -- Warren Buffett is rich, and staying rich, but his holdings pay no dividends.

Warren Buffet's (perhaps) most famous holding is Coca Cola. It pays a decent dividend, currently over 2.8%
by bertilak
Wed Aug 20, 2014 1:21 pm
 
Forum: Investing - Theory, News & General
Topic: [live off dividends?] How the rich stay/get richer??
Replies: 62
Views: 4931

Re: [live off dividends?] How the rich stay/get richer??

The rich are not rich because of dividends. It's because they work harder and are willing to take more risks than others. Perhaps a little luck helps, but it would be an anomaly for someone to make $2 million dollars one year and then drop everything to sit back and collect dividends. JT Having the...
by bertilak
Wed Aug 20, 2014 12:30 pm
 
Forum: Investing - Theory, News & General
Topic: [live off dividends?] How the rich stay/get richer??
Replies: 62
Views: 4931

Re: About to Order my first Mini Cooper S

About that automatic -- Perhaps it is more than just an automatic. Many today, especially in performance oriented cars, can be shifted manually even though they are automatic. My VW Passat has that feature. I don't use it but I do use both auto options -- D (normal) and S (sport?). I use S when merg...
by bertilak
Wed Aug 20, 2014 12:15 pm
 
Forum: Personal Consumer Issues
Topic: About to Order my first Mini Cooper S
Replies: 19
Views: 1209

Re: Best way to control someones account.

There are at least two decent ways. I have used both of them. ⋅ The first way is for the custodian (not sure I have that term right) of the account (e.g. Vanguard) give you, at your parents' direction, control over the account, including initiating transactions. This is simple while your p...
by bertilak
Tue Aug 19, 2014 8:25 pm
 
Forum: Investing - Help with Personal Investments
Topic: Best way to control someones account.
Replies: 22
Views: 1839

Re: Bad(?) advice given about Target Date Retirement funds

If I only have $1000 to invest (or actually, less than $9000 which would be needed for a three fund portfolio), I have a reason to use them - that its some of the best diversification I can get with that amount of money. What's your suggestion for which one I should pick if going by the AA is a no-...
by bertilak
Tue Aug 19, 2014 5:52 pm
 
Forum: Investing - Theory, News & General
Topic: Bad(?) advice given about Target Date Retirement funds
Replies: 103
Views: 6378

Re: Explaining irrelevant "investing news" articles to relat

I responded with what I hoped were encouraging words: "Mom, High speed traders and what the IEX is doing to combat them doesn't concern me because I invest in mutual funds that are only priced once a day at the end of the day. The same is true for you in your investments at Vanguard, and proba...
by bertilak
Tue Aug 19, 2014 3:56 pm
 
Forum: Investing - Theory, News & General
Topic: Explaining irrelevant "investing news" articles to relatives
Replies: 6
Views: 578

Re: Bad(?) advice given about Target Date Retirement funds

Here's a column I did for M* back in 2009 on this very topic called "Fixing Target Date Funds". http://news.morningstar.com/articlenet/article.aspx?postId=2686718 Thanks for sharing that article, Mel. I don't remember having read it when it came out. I like your suggestions. Yes, that wou...
by bertilak
Tue Aug 19, 2014 10:35 am
 
Forum: Investing - Theory, News & General
Topic: Bad(?) advice given about Target Date Retirement funds
Replies: 103
Views: 6378

Re: Bad(?) advice given about Target Date Retirement funds

I see your point, but one could also argue that by default, the Target Retirement gradually takes you toward a less risky allocation. Check out englishgirl's examples. "Gradually" does not always apply. That puts it in the "bad advice" column if "gradually" is what you...
by bertilak
Tue Aug 19, 2014 7:08 am
 
Forum: Investing - Theory, News & General
Topic: Bad(?) advice given about Target Date Retirement funds
Replies: 103
Views: 6378
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