Search found 16581 matches

by dbr
Sat Aug 29, 2015 12:45 pm
Forum: Investing - Help with Personal Investments
Topic: Logic Check - Purpose of bonds in MY portfolio
Replies: 6
Views: 280

Re: Logic Check - Purpose of bonds in MY portfolio

Pros of Bonds (today): • Dampen portfolio volatility That is the general purpose of bonds in a long term portfolio. The trade-off is reduced expected return. Where you choose to be on this continuum is a matter of individual judgement and preference. Experienced investors and advisors often see a 1...
by dbr
Sat Aug 29, 2015 10:30 am
Forum: Personal Consumer Issues
Topic: Debating whether to purchase a compact or midsize vehicle
Replies: 4
Views: 312

Re: Debating whether to purchase a compact or midsize vehicle

The fusion is a little heavier and therefore a little safer for you in a collision. It may be the AWD version would be a thought. I don't think the Focus has that option. AWD may offer less gas mileage. Most current sedan designs provide horrible side and backward visibility but backup cameras and b...
by dbr
Sat Aug 29, 2015 10:07 am
Forum: Investing - Theory, News & General
Topic: Reblancing
Replies: 9
Views: 379

Re: Reblancing

How many folks don't rebalance, but add more to the underfunded asset until it is back to your desired AA. What are the pros and cons of rebalancing this way, if there is any. Generally it is assumed one would do this as a matter or course. Any one individual might not bother, as well. The obvious ...
by dbr
Fri Aug 28, 2015 5:37 pm
Forum: Personal Finance (Not Investing)
Topic: Joint finances and cash management
Replies: 34
Views: 1943

Re: Joint finances and cash management

By the time all is said and done it seems that every combination of possibilities ends up becoming reality. I find that getting it all down in a spreadsheet and just keeping track works fine. Most of our spending starts with a credit card, and I think it is a good idea for people to have an independ...
by dbr
Fri Aug 28, 2015 5:33 pm
Forum: Investing - Theory, News & General
Topic: Why doesn't the 3 fund portfolio have TIPS?
Replies: 33
Views: 1886

Re: Why doesn't the 3 fund portfolio have TIPS?

@Rodc What is unexpected inflation? I'll speak my piece here as well. Personally I don't care for the "unexpected" inflation concept. TIPS are inflation indexed for exactly whatever inflation occurs, expected or unexpected, whatever that means. What it does mean is that TIPS have no infla...
by dbr
Fri Aug 28, 2015 4:08 pm
Forum: Investing - Theory, News & General
Topic: Why doesn't the 3 fund portfolio have TIPS?
Replies: 33
Views: 1886

Re: Why doesn't the 3 fund portfolio have TIPS?

The simple answer is that adding a TIPS fund would then not be three fund portfolio. Well, seriously the idea is to keep people focused on fundamentals rather than on a "better" plan. One could even ask why does the three fund portfolio have international stocks. But what about only TIPS f...
by dbr
Fri Aug 28, 2015 3:02 pm
Forum: Investing - Theory, News & General
Topic: Cash is king over short-term bonds
Replies: 37
Views: 2914

Re: Cash is king over short-term bonds

I am holding cash in banks in order to get a guaranteed interest rate of at least 1 percent. But, on Monday I found out that I could not execute an ETF buy transaction instantaneously (must call Vanguard concierge and get bank approval over phone etc.). I don't like this situation, so I am thinking...
by dbr
Fri Aug 28, 2015 2:33 pm
Forum: Personal Finance (Not Investing)
Topic: ISO and the AMT [Incentive Stock Options and Alternative Minimum Tax]
Replies: 4
Views: 225

Re: ISO and the AMT

Thanks for the response. From Fairmark , it sounds like you receive the AMT credit in any year that your AMT is lower than your regular tax, not just in years where you sell the shares. According to that page, I'm out of luck and I was supposed to be claiming an AMT credit every year that I wasn't ...
by dbr
Fri Aug 28, 2015 2:29 pm
Forum: Investing - Theory, News & General
Topic: So Is Now The Time To Buy?
Replies: 21
Views: 829

Re: So Is Now The Time To Buy?

Normally I'd agree with you, but if you're buying an asset, why not buy it at a 5-10% discount. Ex ante (meaning before the fact) there is no such thing as buying stocks at a discount, or when they are cheap, etc. But for more detailed discussion there are threads, blogs, etc., on such topics as &q...
by dbr
Fri Aug 28, 2015 2:21 pm
Forum: Investing - Help with Personal Investments
Topic: Does this one-fund portfolio make sense?
Replies: 12
Views: 855

Re: Does this one-fund portfolio make sense?

We seem to be deviating from the topic a bit comparing cash with bonds. My actual question is basically if having a very high stock allocation (minus the cash/bonds/CDs etc for emergencies) is reasonable if I am willing to live much more frugally when the market is down. A general result of most re...
by dbr
Fri Aug 28, 2015 12:36 pm
Forum: Investing - Theory, News & General
Topic: So Is Now The Time To Buy?
Replies: 21
Views: 829

Re: So Is Now The Time To Buy?

Making a stock market investment decision based on the short term is foolish.
by dbr
Fri Aug 28, 2015 12:34 pm
Forum: Investing - Help with Personal Investments
Topic: Does this one-fund portfolio make sense?
Replies: 12
Views: 855

Re: Does this one-fund portfolio make sense?

Do you really think loaning money to the US Treasury is risky enough that you would stay in cash? FDIC is probably just a little less secure than Treasuries. You are correct that corporate bonds have default risk, the higher the yield likely the more so. Diversified munis are probably in a middle gr...
by dbr
Fri Aug 28, 2015 12:14 pm
Forum: Investing - Theory, News & General
Topic: Cash is king over short-term bonds
Replies: 37
Views: 2914

Re: Cash is king over short-term bonds

I wish the board would use "can" more often than "should" in these sorts of discussions.
by dbr
Fri Aug 28, 2015 11:55 am
Forum: Investing - Help with Personal Investments
Topic: Managed Accounts
Replies: 12
Views: 468

Re: Managed Accounts

What is the cost? You should not be paying Fidelity a management fee for a managed account nor expense ratios for strategic funds unless there is an exceptional need to do so. In such exceptional circumstances there would be better and cheaper alternatives anyway. The all-in, all-done standard for i...
by dbr
Fri Aug 28, 2015 11:43 am
Forum: Investing - Help with Personal Investments
Topic: Rebuilding Portfolio
Replies: 12
Views: 748

Re: Rebuilding Portfolio

It looks to me that after paying off the loan and CC debt that the most sensible thing to do with the remainder would be an interest paying checking account and/or CDs. I don't know what the interest rates on the mortage and the car loan are, but there is also an issue of keeping a cash reserve for ...
by dbr
Fri Aug 28, 2015 10:18 am
Forum: Investing - Help with Personal Investments
Topic: Rebuilding Portfolio
Replies: 12
Views: 748

Re: Rebuilding Portfolio

I got a little lost in the previous thread about the margin loan, but as I see it in the layout above wouldn't it be imperative to pay off that loan and also the 10K of credit card debt?

I apologize if I am missing something here.
by dbr
Fri Aug 28, 2015 10:05 am
Forum: Investing - Help with Personal Investments
Topic: ok to place a market order for VEU?
Replies: 20
Views: 444

Re: ok to place a market order for VEU?

I would not say there is much risk in placing a market order for a heavily traded ETF if that order is placed while the market is open and not at the very beginning or end.

Naturally people can avoid any risk of a market pricing glitch by using a limit order.
by dbr
Fri Aug 28, 2015 9:57 am
Forum: Investing - Help with Personal Investments
Topic: ok to place a market order for VEU?
Replies: 20
Views: 444

Re: ok to place a market order for VEU?

As a matter of procedure I would not place a market order for anything while the market is closed.
by dbr
Thu Aug 27, 2015 9:38 am
Forum: Investing - Help with Personal Investments
Topic: Would Appreciate Input on Planned Asset Allocation
Replies: 5
Views: 469

Re: Would Appreciate Input on Planned Asset Allocation

The one single mistake I see here is the one mentioned above of not treating all the assets as one portfolio. I would also tend to comment that if you have to ask other people if you are tilted too far to small cap value, REITs, emerging markets, commodities, or any of the things people like to add ...
by dbr
Thu Aug 27, 2015 9:03 am
Forum: Investing - Theory, News & General
Topic: Why all the fuss about wash sales?
Replies: 14
Views: 1695

Re: Why all the fuss about wash sales?

I noticed a lot of threads about wash sales, and I'm not sure I get it. The term "wash sale" sounds ominous, but it seems in the worst case you'd just end up with a portion of a position you have to delay accounting for a loss until next tax year. Maybe someone could run through a couple ...
by dbr
Wed Aug 26, 2015 11:48 am
Forum: Investing - Theory, News & General
Topic: Anybody questioning use of an advisor at this volatile time?
Replies: 19
Views: 1383

Re: Anybody questioning use of an advisor at this volatile time?

I have and it is not for advice, but for someone to do the TLH on my behalf in my taxable. I am busy working everyday and did not even realize I had 20k in long term losses that just showed up this month until I checked 2 days ago. Next morning I put the orders in and TLH 14k (the market moved back...
by dbr
Wed Aug 26, 2015 11:02 am
Forum: Investing - Help with Personal Investments
Topic: my retired mother's predicament
Replies: 51
Views: 4367

Re: my retired mother's predicament

Given that (1) Ashley's mother is not in good health, and that (2) she is really worried about this money, and that (3) she has no real means to increase the assets by extra work or upcoming benefits, and that (4) she lives close to the edge and really needs this money for many reasons - wouldn't i...
by dbr
Wed Aug 26, 2015 10:26 am
Forum: Investing - Theory, News & General
Topic: Anybody questioning use of an advisor at this volatile time?
Replies: 19
Views: 1383

Re: Anybody questioning use of an advisor at this volatile time?

I was speaking with a colleague last Friday about investing in general and she mentioned her advisor was advising her of an impending "50% crash" and to abandon stocks and bonds. On Tuesday I somewhat sarcastically asked her if she bought any stocks on Monday when everything was down. She...
by dbr
Tue Aug 25, 2015 1:09 pm
Forum: Investing - Help with Personal Investments
Topic: my retired mother's predicament
Replies: 51
Views: 4367

Re: my retired mother's predicament

Acknowledging the realities of disability and personal situation, I would emphasize means of support involving SS, SSDI, resources in the social services system and so on. Medical insurance and health cost mitigation loom large. The situation may well require permanent assistance from the family. I ...
by dbr
Tue Aug 25, 2015 10:59 am
Forum: Investing - Help with Personal Investments
Topic: my retired mother's predicament
Replies: 51
Views: 4367

Re: my retired mother's predicament

Your 62 year old mother needs to go back to work. She is not financially prepared for retirement yet. She needs to work another 3-5 years, and delay social security payments until then. They will be higher if she waits to take it until she is 65-67 years old. My mom also did early retirement, but c...
by dbr
Mon Aug 24, 2015 2:22 pm
Forum: Investing - Help with Personal Investments
Topic: Advice on investing.in.mutual.funds
Replies: 10
Views: 425

Re: Advice on investing.in.mutual.funds

I did notice by surveying some of the prospectus' that the turnover ratios on their funds are very low. That is a good thing and mitigates the damage compared to some funds.
by dbr
Mon Aug 24, 2015 11:50 am
Forum: Investing - Help with Personal Investments
Topic: Vanguard doesn't allow dividends to Prime MM?
Replies: 28
Views: 1373

Re: Vanguard doesn't allow dividends to Prime MM?

If it is the settlement account then you need a balance of .01 to direct dividends from an MF to go to that account. You can exchange 1 dollar from an MF into the MM and then reset the distributions from the MF to go there once the exchange clears. Always leave .01 in your settlement accounts at VG...
by dbr
Mon Aug 24, 2015 11:48 am
Forum: Investing - Help with Personal Investments
Topic: Target Retirement Income Fund vs. 3 Fund Portfolio
Replies: 9
Views: 964

Re: Target Retirement Income Fund vs. 3 Fund Portfolio

The intermediate treasury fund is more conservative than total bond, but I would not be making bond investment selection that should be for the long term based on short term events in the stock market. It might be that you should also include a position in TIPS as these are a holding without inflati...
by dbr
Mon Aug 24, 2015 11:39 am
Forum: Investing - Help with Personal Investments
Topic: Vanguard doesn't allow dividends to Prime MM?
Replies: 28
Views: 1373

Re: Vanguard doesn't allow dividends to Prime MM?

Where would the dividends go otherwise if you elect not to reinvest?
by dbr
Mon Aug 24, 2015 11:10 am
Forum: Investing - Help with Personal Investments
Topic: Advice on investing.in.mutual.funds
Replies: 10
Views: 425

Re: Advice on investing.in.mutual.funds

Thank you for all your help. Someone mentioned looking at the cost of mutual fund management. I.dont know whats considered.good.vs not so good. Where does amana rank.up in this regards? Sorry if my.questions are too.basic, but as said.before I m.very.much a beginner so please bare with me. You can ...
by dbr
Sun Aug 23, 2015 9:23 am
Forum: Investing - Theory, News & General
Topic: Rebalancing bands revisited, a proposal
Replies: 37
Views: 2718

Re: Rebalancing bands revisited, a proposal

As for rebalancing bands, we know the 5/25 seems to be popular, but where did these numbers come from? Perhaps 2.873/15.911 would have been better? But RodC is right about noise and significance. If "better" is only 0.01% better, then so what? Well 5 and 25 both divide 100 and 5 divides 2...
by dbr
Sun Aug 23, 2015 9:21 am
Forum: Investing - Theory, News & General
Topic: Rebalancing bands revisited, a proposal
Replies: 37
Views: 2718

Re: Rebalancing bands revisited, a proposal

For example, for a 60/40 stocks/bonds AA, what X/Y values would have resulted in 20 rebalancings in the past 20 years. That could be 0 rebalancinng some years and 2 or 3 rebalancings in other years, but if the average was once per year, there would be about 20 total rebalancings in 20 years. ? I th...
by dbr
Sat Aug 22, 2015 1:42 pm
Forum: Investing - Theory, News & General
Topic: What to do w/450K in cash?
Replies: 32
Views: 3868

Re: What to do w/450K in cash?

I think this is a case where the investor can do about anything and it doesn't affect anything of importance that you told us about. Another option would be to just leave the money where it is. It won't make enough difference to worry about. If you think you are not taking enough risk, then increase...
by dbr
Sat Aug 22, 2015 12:17 pm
Forum: Investing - Help with Personal Investments
Topic: Retired Newbie Needs to WD money from IRA NOW
Replies: 13
Views: 1235

Re: Retired Newbie Needs to WD money from IRA NOW

...if you need to withdraw when stocks are down you would just take out some money by selling bonds and cash... Since that would not be possible with a target retirement fund, if someone has everything in a target retirement fund, upon reaching the age when s/he will need to begin withdrawing, woul...
by dbr
Sat Aug 22, 2015 11:11 am
Forum: Personal Consumer Issues
Topic: Cheaper car for someone who enjoys cars?
Replies: 63
Views: 5976

Re: Cheaper car for someone who enjoys cars?

Serious comment: I too would suggest somewhere in the Subaru line-up. Less than serious comments: There is the Mazda Miata, but you may mean a car with a lot of gimmicks and not a car purely to be driven. Is there a particular reason AWD is a must-have? Boston in and of itself doesn't make that a mu...
by dbr
Sat Aug 22, 2015 11:00 am
Forum: Investing - Theory, News & General
Topic: Thoughts on Portfolio comparison?
Replies: 10
Views: 602

Re: Thoughts on Portfolio comparison?

Deciding between or among possible portfolios based on running a race over any particular time period is a futile undertaking. As others are pointing out, costs are a certain drag on results. You are probably not aware of the true total of actual costs you are paying. An additional problem is that y...
by dbr
Sat Aug 22, 2015 10:55 am
Forum: Investing - Theory, News & General
Topic: Buying a SPIA Joint Life or 2 Single Life SPIAs
Replies: 7
Views: 423

Re: Buying a SPIA Joint Life or 2 Single Life SPIAs

I agree it is actually a good question. There are options other than joint life and single annuity. One could introduce the complexity of period certain as well. However, in the end this is an insurance proposition. The issue is to analyze the need to be insured by considering what situation people ...
by dbr
Sat Aug 22, 2015 10:48 am
Forum: Investing - Help with Personal Investments
Topic: Substantially Identical?
Replies: 15
Views: 1165

Re: Substantially Similar?

"Substantially identical" is such a wonderfully illogical combination of words. In practice it happens that "identical" applies in real effect and "substantially identical" exists in a never-never land that has never been used by the IRS to tag someone with a mutual fun...
by dbr
Sat Aug 22, 2015 10:44 am
Forum: Investing - Help with Personal Investments
Topic: Retired Newbie Needs to WD money from IRA NOW
Replies: 13
Views: 1235

Re: Retired Newbie Needs to WD money from IRA NOW

...if you need to withdraw when stocks are down you would just take out some money by selling bonds and cash... Since that would not be possible with a target retirement fund, if someone has everything in a target retirement fund, upon reaching the age when s/he will need to begin withdrawing, woul...
by dbr
Sat Aug 22, 2015 10:20 am
Forum: Investing - Help with Personal Investments
Topic: Retired Newbie Needs to WD money from IRA NOW
Replies: 13
Views: 1235

Re: Retired Newbie Needs to WD money from IRA NOW

Thanks for your reply. Yes, it does not make a lot of sense for us have both money market and bond funds in the portfolio. I guess my thought was if the bottom dropped out of both the equity and bond market at the same time I would at least have someplace safe to get my money from. My thought was t...
by dbr
Sat Aug 22, 2015 9:58 am
Forum: Investing - Help with Personal Investments
Topic: Simple Vanguard ETF Portfolio Recommendation for Young Investor?
Replies: 7
Views: 333

Re: Simple Vanguard ETF Portfolio Recommendation for Young Investor?

I am not an enthusiast for "restaurant menu" asset allocation and would suggest a simple portfolio. It is enough at this point to make an astute choice of just the stock/bond allocation. There are reasoned arguments for slicing and dicing with tilts to various asset classes. I would sugges...
by dbr
Sat Aug 22, 2015 9:51 am
Forum: Investing - Theory, News & General
Topic: Should I want the market to go up or down?
Replies: 35
Views: 3182

Re: Should I want the market to go up or down?

As stated it was a foolish question as the obvious answer is that everyone wants to market to always go up in real dollars. If you want to make money by shorting the market, you want it to go down. A less foolish question is assuming a known CAGR for the market in a given time period, what do you wa...
by dbr
Sat Aug 22, 2015 9:40 am
Forum: Investing - Theory, News & General
Topic: Buying a SPIA Joint Life or 2 Single Life SPIAs
Replies: 7
Views: 423

Re: Buying a SPIA Joint Life or 2 Single Life SPIAs

My first answer is that it is all about insurance against the event of the death of one of you. Doesn't it look like there is a good reason why one might take the lower payout to not have the income of the survivor take a drastic hit? The consideration here is what will be the income need of the sur...
by dbr
Sat Aug 22, 2015 9:34 am
Forum: Investing - Help with Personal Investments
Topic: Retired Newbie Needs to WD money from IRA NOW
Replies: 13
Views: 1235

Re: Retired Newbie Needs to WD money from IRA NOW

For an issue like this MM and bonds are pretty much the same thing. If you mean to have a 60/40 portfolio then the money market is part of the forty. You wouldn't have a separate allocation to cash normally. If you do want to allocate cash separately, then your account is actually perhaps 57/38/5 or...
by dbr
Fri Aug 21, 2015 8:31 pm
Forum: Investing - Theory, News & General
Topic: Bogle: retirees should focus on dividends
Replies: 142
Views: 12054

Re: Bogle: retirees should focus on dividends

I guess I don't see a big problem if a retiree wants to tilt to dividend stocks to increase their income, which will decrease their need to take risk, and perhaps allow a smaller allocation to stocks. Kevin That sentence makes no sense. It is a paradigm for why this discussion never gets resolved. ...
by dbr
Fri Aug 21, 2015 8:19 pm
Forum: Investing - Help with Personal Investments
Topic: Quantifying the safety of the G Fund in AA
Replies: 10
Views: 756

Re: Quantifying the safety of the G Fund in AA

Within the uncertainty of the problem I would not think of taking more risk in stocks by holding the G fund rather than TBM. Not sure I follow what you mean. I'm speaking of "taking more risk" in stocks by increasing my allocation to TSM index funds, if that clarifies. Right Taking more r...
by dbr
Fri Aug 21, 2015 12:50 pm
Forum: Personal Finance (Not Investing)
Topic: Mortgage Interest Deduction Snafu?
Replies: 11
Views: 683

Re: Mortgage Interest Deduction Snafu?

The advice is to respond with a letter to the IRS letter properly referencing their communication and providing your explanation and copies of the relevant documents, probably including a copy of your tax return. Getting letters from the IRS for things like this is routine and so is properly replyi...
by dbr
Fri Aug 21, 2015 12:14 pm
Forum: Personal Finance (Not Investing)
Topic: Mortgage Interest Deduction Snafu?
Replies: 11
Views: 683

Re: Mortgage Interest Deduction Snafu?

The advice is to respond with a letter to the IRS letter properly referencing their communication and providing your explanation and copies of the relevant documents, probably including a copy of your tax return. Getting letters from the IRS for things like this is routine and so is properly replyin...
by dbr
Fri Aug 21, 2015 12:09 pm
Forum: Personal Finance (Not Investing)
Topic: Passed up for a promotion, now what?
Replies: 34
Views: 4266

Re: Passed up for a promotion, now what?

Talk to your VP one last time and make your case. If you don't get a satisfactory answer, start looking. If he won't meet to discuss, then start looking. Don't say you are looking for another job. I remember when I found out a colleague with 1 year less experience was promoted to a higher position ...
by dbr
Fri Aug 21, 2015 11:30 am
Forum: Personal Consumer Issues
Topic: What about the Ford Edge? [Revised for 2015 model]
Replies: 89
Views: 5396

Re: What about the Ford Edge? [Revised for 2015 model]

One thing these discussions about cars proves to me is that people choose the vehicle they buy based on every variety of personal preference. That is why you can go out on the street and see a few of everything that is for sale within a fairly short period of time. That is not to say gathering infor...

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