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Re: M*: No Vanguard Funds Among Its Top Seven Inter. Bond Fu

If you can't sleep at night because you are worried your bond index fund will underperform some suggested actively managed funds, then you could try switching and see if your sleep improves.
by dbr
Fri Mar 27, 2015 8:18 am
 
Forum: Investing - Help with Personal Investments
Topic: M*: No Vanguard Funds Among Its Top Seven Inter. Bond Funds
Replies: 3
Views: 629

Re: International stock dividend cut. Why?

Unless international companies really have cut dividends recently, it might be better to label this thread "dividend variability" rather than "dividend cut."
by dbr
Thu Mar 26, 2015 4:56 pm
 
Forum: Investing - Theory, News & General
Topic: International stock "dividend variability" Why?
Replies: 37
Views: 2838

Re: Help me understand Vanguard Small-Cap Value (VSIAX)

Since a lot of people here understand their stock allocations using the M* nine-box description, one could look up how M* defines the borders between small, mid, and large. In any case one can take one's portfolio as a whole through M* x-ray and see the effect of more or less of a given fund. In fac...
by dbr
Thu Mar 26, 2015 4:53 pm
 
Forum: Investing - Help with Personal Investments
Topic: Help me understand Vanguard Small-Cap Value (VSIAX)
Replies: 8
Views: 849

Re: A Vanguard transfer issue... Thoughts?

One of the worst fails at CS is positive false information. That means that someone says something is definitely so when it is not. The preference is to not know or to say something may or may not work as desired. To that can be added making an effort to find out for sure.
by dbr
Thu Mar 26, 2015 3:23 pm
 
Forum: Investing - Help with Personal Investments
Topic: A Vanguard transfer issue... Thoughts?
Replies: 12
Views: 929

Re: Illiquid Assets

There must be an illiquidity premium but I'm not so sure it's always the buyer who reaps it. In stale markets it's whoever has the longer time horizon. If they are equally matched you tend to split the spread. One of the better times to harvest illiquidity premium is during a liquidity panic such a...
by dbr
Thu Mar 26, 2015 12:24 pm
 
Forum: Investing - Theory, News & General
Topic: Illiquid Assets
Replies: 44
Views: 3643

Re: One single investment in a taxable account

You have brought up an issue that is discussed here, wanting to have holdings that pay dividends rather than having to sell any shares to take money out. One of the arguments against this is that you have to pay the tax on the dividends whether you needed the distribution at that time or not. It's ...
by dbr
Wed Mar 25, 2015 7:55 am
 
Forum: Investing - Help with Personal Investments
Topic: One single investment in a taxable account
Replies: 10
Views: 1147

Re: Transition to retirement (passive income)

Fundamentally you saved that money by postponing consumption. Now you get to consume by spending that money. If what you are asking is how to spend the money and also keep it, that is a much trickier question to which the answer is the proverbial you can't have your cake and eat it too. If you are p...
by dbr
Tue Mar 24, 2015 4:49 pm
 
Forum: Investing - Help with Personal Investments
Topic: Transition to retirement (passive income)
Replies: 3
Views: 435

Re: Going over gift tax limits

Honestly, I think many people misunderstand the tax implications and believe that they will have to pay gift tax on anything over $14k. I know I did until I started reading Bogleheads. I suspect that's the source of all the concern about not exceeding the annual exclusion. This. I agree that is the...
by dbr
Tue Mar 24, 2015 4:21 pm
 
Forum: Personal Finance (Not Investing)
Topic: Going over gift tax limits
Replies: 20
Views: 1621

Re: Why Bonds With 20 Year Horizon?

So can you make the U.S. equities market drop 20% for me this year? I'd really appreciate it. US valuations do look a bit high. :D I can do that. But the deal you have to accept is after you buy in the market goes down another 50% and does not recover to the price you paid for forty years. How like...
by dbr
Tue Mar 24, 2015 4:12 pm
 
Forum: Investing - Theory, News & General
Topic: Why Bonds With 20 Year Horizon?
Replies: 72
Views: 4993

Re: Why Bonds With 20 Year Horizon?

Exactly. That is why anecdotes abound of people doing exactly that during stock downturns. This is also one of the factors in why the average investor falls far short in return from the theoretical return of the indices in which they are invested. The issue is important enough that Larry Swedroe inc...
by dbr
Tue Mar 24, 2015 1:18 pm
 
Forum: Investing - Theory, News & General
Topic: Why Bonds With 20 Year Horizon?
Replies: 72
Views: 4993

Re: 3 fund portfolio and dividend paying index funds

Concentrating your stock holdings to some degree in a subset of the total market is a departure from the fundamental philosophy of the three fund portfolio. It is one of the complications in worrying about investing that the three fund idea is designed to avoid. The same idea is not applied to the b...
by dbr
Tue Mar 24, 2015 1:11 pm
 
Forum: Investing - Theory, News & General
Topic: 3 fund portfolio and dividend paying index funds
Replies: 3
Views: 590

Re: Ending Fidelity managed account

I would recommend that you back up and go through the "getting started" process in the Wiki: https://www.bogleheads.org/wiki/Getting_started Generally speaking, picking funds is the last step in a process of formulating an investing plan that will come out of going through the various cons...
by dbr
Tue Mar 24, 2015 12:33 pm
 
Forum: Investing - Help with Personal Investments
Topic: Ending Fidelity managed account
Replies: 5
Views: 771

Re: 4 Fund Portolio without bonds

And the layman's summary translation is? Educate yourself on the fundamentals of investing but not by reading Merriman, at least not articles like that one. Indeed am trying to follow and be even more educated, standard deviation and Sharpe aside, is it that there is inherently more risk by deviati...
by dbr
Tue Mar 24, 2015 12:27 pm
 
Forum: Investing - Theory, News & General
Topic: 4 Fund Portolio without bonds
Replies: 35
Views: 2592

Re: Vanguard Screwed up 1099-B

Incorrect basis information from brokers for non-covered shares is meaningless and should be ignored. What you can't ignore is submitting the correct basis information on your tax return. Enter the correct numbers from your records. As far as I know the IRS does not even see, or at least does not re...
by dbr
Tue Mar 24, 2015 8:12 am
 
Forum: Personal Finance (Not Investing)
Topic: Vanguard [Messed up] 1099-B
Replies: 8
Views: 1540

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 dbr
Tue Mar 24, 2015 7:44 am
 
Forum: Investing - Theory, News & General
Topic: The one area I disagree with Jack
Replies: 93
Views: 7268

Re: VanG Intermediate Term Bond Market Question

Would any of the bond experts here want to comment on what it might mean to be "diversified" in the bond market and why that would be desirable? That is to say, beyond holding a sufficient number of different bonds to avoid diversifiable risk of default or other hazards, is there a benefit...
by dbr
Tue Mar 24, 2015 7:36 am
 
Forum: Investing - Help with Personal Investments
Topic: VanG Intermediate Term Bond Market Question
Replies: 20
Views: 1806

Re: 4 Fund Portolio without bonds

airahcaz wrote:
And the layman's summary translation is?


Educate yourself on the fundamentals of investing but not by reading Merriman, at least not articles like that one.
by dbr
Tue Mar 24, 2015 7:20 am
 
Forum: Investing - Theory, News & General
Topic: 4 Fund Portolio without bonds
Replies: 35
Views: 2592

Re: Ending Fidelity managed account

You can call Fidelity and tell them you don't want a managed account and to set you up without. If they obfuscate or try to talk you out of it, an alternative is to set up a new account at a different company, perhaps Vanguard, that does not involve management fees and have the new account pull your...
by dbr
Tue Mar 24, 2015 6:16 am
 
Forum: Investing - Help with Personal Investments
Topic: Ending Fidelity managed account
Replies: 5
Views: 771

Re: Why allocate to bonds if receiving a Government pension?

Please see: http://www.bogleheads.org/forum/viewtopic.php?f=10&t=161696 It might be better to read two pages of discussion already written than write it again. This is a topic, treating pension as a bond, that comes up repeatedly on the forum. It is probably possible to find earlier discussions,...
by dbr
Mon Mar 23, 2015 9:47 pm
 
Forum: Investing - Help with Personal Investments
Topic: Why allocate to bonds if receiving a Government pension?
Replies: 3
Views: 541

Re: Passive Investing w/Vanguard

-for my taxes, do I need to something special initially or just wait till the end of the year and Vanguard will send me a form for my taxes? In a taxable account, you get the appropriate forms every year between oh, late January and mid February - if I recall correctly. And tax software will usuall...
by dbr
Mon Mar 23, 2015 4:51 pm
 
Forum: Investing - Help with Personal Investments
Topic: Passive Investing w/Vanguard
Replies: 9
Views: 1232

Re: The one area I disagree with Jack

I view much of the discussion in this thread as just different ways of framing things. Kevin While that is true to a degree, the imporant thing is to look at what the practical consequences of various framings actually are. There is a great deal of difference between looking more closely at a situa...
by dbr
Mon Mar 23, 2015 2:35 pm
 
Forum: Investing - Theory, News & General
Topic: The one area I disagree with Jack
Replies: 93
Views: 7268

Re: 403b Question

joetaf27 wrote:Should we stay away from that 5% upfront fee?


To be blunt, agreeing to pay a 5% fee upfront when there is any alternative is flat out stupid.
by dbr
Mon Mar 23, 2015 2:09 pm
 
Forum: Investing - Help with Personal Investments
Topic: 403b Question
Replies: 26
Views: 1840

Re: best income producing Vanguard fund?

Funds don't generate income. Investors take income by selling assets and withdrawing the cash. Whether the sale is direct by actually selling shares of something or "in effect" by spending instead of reinvesting dividends is immaterial. What portfolios are "best" to support withd...
by dbr
Mon Mar 23, 2015 2:07 pm
 
Forum: Investing - Help with Personal Investments
Topic: best income producing Vanguard fund?
Replies: 6
Views: 1335

Re: Restaurant tipping

I figure this thread is a good place for my tipping question (rather than start a new one): My wife and I go out to eat often and we tip (what I think is) well...minimum of 20%. Sometimes 25% or 30%. My question is since we do this, is morally ok to drop our tipping rate in the future when we are r...
by dbr
Mon Mar 23, 2015 1:41 pm
 
Forum: Personal Consumer Issues
Topic: Restaurant tipping
Replies: 190
Views: 10491

Re: Does your CPA/Tax Person help with reducing your taxes?

Yeah, this was basically my experience as well (see my post above). What I'm stuck on now is: If CPAs are hit or miss, and your taxes are complicated and there's a lot of edge cases (e.g. when the AMT is involved), what do you do? How do you find someone who's going to actually do the gruntwork of ...
by dbr
Sun Mar 22, 2015 12:36 pm
 
Forum: Personal Finance (Not Investing)
Topic: Does your CPA/Tax Person help with reducing your taxes?
Replies: 58
Views: 4636

Re: The one area I disagree with Jack

In my case a pension and SS account for 2/3 of our income stream. That would put my portfolio's AA at 100% equities, which is not in my best interests according to portfolio drawdown survivability studies. In my case the wrong answer is still the wrong answer. Indeed, I previously posted that I too...
by dbr
Sun Mar 22, 2015 12:27 pm
 
Forum: Investing - Theory, News & General
Topic: The one area I disagree with Jack
Replies: 93
Views: 7268

Re: External Hard Drive?

One of the critical things to remember - you want to hook up that external drive for the backup & then disconnect it. Don't leave the backup drive connected 24x7. It's one thing if a hard drive fails... it's a whole different thing if a virus like Crytolocker hits you and encrypts all your data...
by dbr
Sun Mar 22, 2015 12:22 pm
 
Forum: Personal Consumer Issues
Topic: External Hard Drive?
Replies: 44
Views: 2294

Re: The one area I disagree with Jack

Since Bengen concluded that stock allocations less than 50% or greater than 75% are counterproductive to portfolio longevity it would seem the portion of SS or pension in your total income stream are not necessary material to your AA. Whatever portion of your overall income stream your portfolio is...
by dbr
Sun Mar 22, 2015 11:52 am
 
Forum: Investing - Theory, News & General
Topic: The one area I disagree with Jack
Replies: 93
Views: 7268

Re: The one area I disagree with Jack

Well taken. Perhaps we should not be talking about whether we agree or disagree with a particular person but what ideas we endorse. For me: + Your AA should reflect your needs and abilities to take on risk; needs and abilities vary according to circumstances so no single formula can apply to everyo...
by dbr
Sun Mar 22, 2015 11:21 am
 
Forum: Investing - Theory, News & General
Topic: The one area I disagree with Jack
Replies: 93
Views: 7268

Re: Reduced Spending thru Retirement? Models or Data

You can try the link below. I am not trying to be snarky, really, because I recall seeing several of those papers and would have needed to Google them myself to get a list of the suggestions. http://lmgtfy.com/?q=spending+decreases+in+retirement Previous comments that individual variation is importa...
by dbr
Sun Mar 22, 2015 11:01 am
 
Forum: Personal Finance (Not Investing)
Topic: Reduced Spending thru Retirement? Models or Data
Replies: 6
Views: 704

Re: The one area I disagree with Jack

Framed as a strict mathematical rule where you end up with this rule ignores your circumstances as a whole and takes account of your income circumstances only in one rigid way. I don't think there is any escape from this. I guess this is true if you believe that all people should calculate their AA...
by dbr
Sun Mar 22, 2015 10:44 am
 
Forum: Investing - Theory, News & General
Topic: The one area I disagree with Jack
Replies: 93
Views: 7268

Re: Finance Annuity with my money for Parents

First of all, it is up to your parents to decide if they want their assets protected from their children. A cynical observer could even construe you to be the evil one in this case. However, it is a reasonable question as to now assets should be set up both for supporting income and for eventual inh...
by dbr
Sun Mar 22, 2015 10:37 am
 
Forum: Personal Finance (Not Investing)
Topic: Finance Annuity with my money for Parents
Replies: 4
Views: 486

Re: Company 401K roll over to Vanguard/Fidelity?

As retiredjg points out the Vanguard TR fund is also available at Vanguard (!), so how would this cause you to reconsider the roll-over? (There could be reasons not to roll-over to an IRA, and a reason to roll-over is fund availability and costs in the 401K). The usual reason for avoiding all in one...
by dbr
Sun Mar 22, 2015 10:22 am
 
Forum: Investing - Help with Personal Investments
Topic: Company 401K roll over to Vanguard/Fidelity?
Replies: 7
Views: 842

Re: The one area I disagree with Jack

I don't think I can agree that "Jack's dictum" ignores the individual investor and shuts off thought. I'd say it does the opposite. He points out an individual circumstance that matters and says to be sure to think about it. He doesn't tell you what AA to choose, he just tells you that on...
by dbr
Sun Mar 22, 2015 10:08 am
 
Forum: Investing - Theory, News & General
Topic: The one area I disagree with Jack
Replies: 93
Views: 7268

Re: 4 Fund Portolio without bonds

You can read here: https://www.bogleheads.org/wiki/Value_tilting_-_stock This is a topic that tends to have phases of intense discussion here on the forum. There are many, many threads that have been here in the past. I would delve into some of the references in the above Wiki and also look up what ...
by dbr
Sun Mar 22, 2015 9:52 am
 
Forum: Investing - Theory, News & General
Topic: 4 Fund Portolio without bonds
Replies: 35
Views: 2592

Re: Dilemma re: taxable account

Thank you all so much for your thoughtful replies, and forgive me for my lack of clarity. Hopefully the following information will help. First, I misspoke when I said the Vanguard advisor "had me " in bonds in my IRA. I spoke on the phone with a Vanguard tax advisor twice and that was his...
by dbr
Sun Mar 22, 2015 9:43 am
 
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 dbr
Sun Mar 22, 2015 9:42 am
 
Forum: Investing - Help with Personal Investments
Topic: Dilemma re: taxable account
Replies: 18
Views: 1652

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 make decisions like SS doesn't exist. Which makes little sense. No one anywhere is suggestin...
by dbr
Sun Mar 22, 2015 9:32 am
 
Forum: Investing - Theory, News & General
Topic: The one area I disagree with Jack
Replies: 93
Views: 7268

Re: The one area I disagree with Jack

So if you want to rethink your position and find a way to agree with him, simply translate his words a bit: Once you are in retirement, the greater your SS income is, the lower your bond percentage needs to be. It is functionally the same statement, just framed differently. The alternative advice t...
by dbr
Sun Mar 22, 2015 9:09 am
 
Forum: Investing - Theory, News & General
Topic: The one area I disagree with Jack
Replies: 93
Views: 7268

Re: Stock Research Tool

Barefootgirl wrote:Yes, thank you. Unfortunately, this doesn't appear to go back to the 1990s


That depends on what stock you are talking about. It goes back to 1970 as far as I can tell. VNQ does not because VNQ is an exchange traded fund that did not exist before 2004, apparently.
by dbr
Sat Mar 21, 2015 7:29 pm
 
Forum: Investing - Theory, News & General
Topic: Stock Research Tool
Replies: 3
Views: 329

Re: The one area I disagree with Jack

How about this. If I were to follow age in bonds, I would be 30/70. If I were to capitalize SS and annuities to age 90 and follow age in bonds, then I would invest my liquid assets at 70/30. Since I actually invest at 50/50, it appears that I agree and disagree with Mr. Bogle to equal degrees on the...
by dbr
Sat Mar 21, 2015 5:45 pm
 
Forum: Investing - Theory, News & General
Topic: The one area I disagree with Jack
Replies: 93
Views: 7268

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

dbr Another question is what instigated taking IRA withdrawals early? You would have had to pay a 10% penalty on those withdrawals up to age 591/2 if you did that. I know we didn't take any early withdrawals because we were very aware of the 10% penalty. that is why i said earlier that we didn't st...
by dbr
Sat Mar 21, 2015 5:21 pm
 
Forum: Investing - Help with Personal Investments
Topic: Opened an account Vanguard yesterday, now having cold feet
Replies: 60
Views: 3594

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

dbr... The speculation would be that the adviser at ML put you in riskier investments than you wanted, especially investments that might have taken a huge crash in the dot-com bust. That is only speculation without looking at the history of the account. That sort of thing was not unheard of, maybe ...
by dbr
Sat Mar 21, 2015 4:46 pm
 
Forum: Investing - Help with Personal Investments
Topic: Opened an account Vanguard yesterday, now having cold feet
Replies: 60
Views: 3594

Re: How is VTIAX performing?

A perspective on how different kinds of assets do and don't perform can be found here:

https://www.callan.com/research/files/989.pdf
by dbr
Sat Mar 21, 2015 4:37 pm
 
Forum: Investing - Help with Personal Investments
Topic: How is VTIAX performing?
Replies: 18
Views: 1643

Re: The one area I disagree with Jack

For obvious reasons I am not going to agree or disagree with Mr. Bogle on this. However, one should be reminded that in investing "fixed income" is neither income nor fixed.
by dbr
Sat Mar 21, 2015 4:34 pm
 
Forum: Investing - Theory, News & General
Topic: The one area I disagree with Jack
Replies: 93
Views: 7268

Re: what expense ratio am I paying?

This is not authoritative, but my belief would be you are paying the net of 0.09% and Fidelity is subsidizing the management fee. At least that is what I think is the case when you see numbers like that.
by dbr
Sat Mar 21, 2015 4:12 pm
 
Forum: Investing - Theory, News & General
Topic: what expense ratio am I paying?
Replies: 2
Views: 353

Re: New vs used cars

FWIW, the last time I bought a new car for myself was 1969, when I didn't know any better. That trend may be broken soon. I don't even own a car right now, though my wife does, however you count that, and that car is twelve years old.
by dbr
Sat Mar 21, 2015 4:08 pm
 
Forum: Personal Consumer Issues
Topic: New vs used cars
Replies: 39
Views: 2612

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

One might speculate that bad decisions made not only in 2008 but also before the crash in 2000 could play a large role here. dbr, whose bad decisions do you mean? The speculation would be that the adviser at ML put you in riskier investments than you wanted, especially investments that might have t...
by dbr
Sat Mar 21, 2015 3:58 pm
 
Forum: Investing - Help with Personal Investments
Topic: Opened an account Vanguard yesterday, now having cold feet
Replies: 60
Views: 3594

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

So you have 23 years of withdrawing $800/month ($9600/year) starting in 1992 with a balance of $230,000. A conservatively invested portfolio with the above fixed amount taken each month would end up today with more money in it than when you started. Even with high costs and fees applied to the inves...
by dbr
Sat Mar 21, 2015 2:28 pm
 
Forum: Investing - Help with Personal Investments
Topic: Opened an account Vanguard yesterday, now having cold feet
Replies: 60
Views: 3594
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