Search found 16597 matches

by dbr
Wed Sep 02, 2015 2:16 pm
Forum: Investing - Help with Personal Investments
Topic: Home Equity When Estimating Savings for Retirement
Replies: 47
Views: 2558

Re: Home Equity When Estimating Savings for Retirement

For those of you who say do not count home equity as part of your total value (for asset allocation calculation purposes) how would you handle my situation? I rent in San Francisco. If I were ever to buy a house in the SF Bay area, immediately about a million dollars of my portfolio would go into t...
by dbr
Wed Sep 02, 2015 2:14 pm
Forum: Investing - Help with Personal Investments
Topic: Home Equity When Estimating Savings for Retirement
Replies: 47
Views: 2558

Re: Home Equity When Estimating Savings for Retirement

Home equity is not the same as [liquid assets] saved for retirement. One reason, as mentioned, is that if/when one sells then one must take into account the new expense structure. That said, one certainly does take it into account in terms of the plan one might form and in particular the contingency...
by dbr
Wed Sep 02, 2015 7:44 am
Forum: Investing - Help with Personal Investments
Topic: Co-Workers Think I'm Doomed Based on Portfolio Perf.
Replies: 50
Views: 5458

Re: Co-Workers Think I'm Doomed Based on Portfolio Perf.

When I have to "matriculate" out of service in 10 years, I will probably roll over to a Vanguard fund. I'll be back here to check for help! Why would you do that? You have better funds in a better plan in the TSP than you would create at Vanguard, perhaps with some possible exceptions. Yo...
by dbr
Tue Sep 01, 2015 7:13 pm
Forum: Personal Finance (Not Investing)
Topic: Chip credit cards, do I need to get a PIN?
Replies: 38
Views: 2172

Re: Chip credit cards, do I need to get a PIN?

This may be helpful: http://www.flyertalk.com/forum/credit-card-programs/1304271-usa-emv-cards-availability-experiences-q-chip-pin-chip-signature.html There can be much confusion about this. Basically, however, there are two things for which a PIN might apply. One is to be able to make a cash withdr...
by dbr
Tue Sep 01, 2015 10:46 am
Forum: Investing - Help with Personal Investments
Topic: How and when to rebalance
Replies: 8
Views: 665

Re: How and when to rebalance

There is a good article here: https://www.bogleheads.org/wiki/Rebalancing There is no magical method that is especially superior to any other method. The single real objective is to not be grossly far away from one's intended level of risk. I personally think the bands approach is very logical, but ...
by dbr
Tue Sep 01, 2015 10:37 am
Forum: Personal Finance (Not Investing)
Topic: Has anyone has this experience? [Credit check to buy new CD]
Replies: 7
Views: 1064

Re: Has anyone has this experience?

I think the key words were "security" and "Patriot Act."
by dbr
Tue Sep 01, 2015 10:34 am
Forum: Investing - Help with Personal Investments
Topic: American Funds IRA - Account Emptied!
Replies: 26
Views: 3096

Re: American Funds IRA - Account Emptied!

These things all have to do with letting a third party get between you and your money. The OP is already on his way to holding his own accounts at Vanguard. For people who might prefer Fidelity or Schwab, etc., remember to not let the nice man on the phone get attached to your business. A parallel f...
by dbr
Tue Sep 01, 2015 9:51 am
Forum: Investing - Help with Personal Investments
Topic: Will my portfolio work? (sanity check)
Replies: 18
Views: 1203

Re: Will my portfolio work? (sanity check)

To answer the question "will it work" requires knowing what you expect it to do. Can you expand on that? To anticipate the answer, it is going to be difficult to define an objective for that portfolio that most likely can't be met as it is but most likely could be met by adding REITS, smal...
by dbr
Mon Aug 31, 2015 5:01 pm
Forum: Investing - Theory, News & General
Topic: Why all the fuss about wash sales?
Replies: 18
Views: 2686

Re: Why all the fuss about wash sales?

I just found out that Vanguard says "The loss of $301.01 has been disallowed due to wash sale activity in this security. The disallowed amount has been added to the cost basis of the shares that caused each wash sale to occur." I have sold all the shares in the account where recent purcha...
by dbr
Mon Aug 31, 2015 4:52 pm
Forum: Investing - Theory, News & General
Topic: What is the benefit of a CD ladder today?
Replies: 16
Views: 1777

Re: What is the benefit of a CD ladder today?

Usually the benefit is with a rolling ladder where all the CDs are five year, just acquired at different times. However, you can't buy a whole ladder at once.
by dbr
Mon Aug 31, 2015 2:00 pm
Forum: Investing - Help with Personal Investments
Topic: American Funds IRA - Account Emptied!
Replies: 26
Views: 3096

Re: American Funds IRA - Account Emptied!

This is presumably another example of the hazards of giving someone discretionary authority over one's investments. The authority over buying and selling could presumably extend to authority over where one's investments are located. The idea that the advisor needs/wants the assets at "his"...
by dbr
Mon Aug 31, 2015 1:19 pm
Forum: Investing - Help with Personal Investments
Topic: Questions about asset allocation in my retirement portfolio
Replies: 3
Views: 409

Re: Questions about asset allocation in my retirement portfolio

It is certainly the case that if you are saving for a shorter term goal then that has to be taken into account when you look at how your money is allocated. That doesn't mean you have to line that up with a specific account if you have some other means of recognizing what is going on. A spreadsheet ...
by dbr
Mon Aug 31, 2015 1:07 pm
Forum: Investing - Help with Personal Investments
Topic: Questions after reading investment book
Replies: 4
Views: 489

Re: Questions after reading investment book

Hello BH, Just finished "The Only Guide You'll Ever Need for the Right Financial Plan..." by Larry Swedroe. This is the second book that I have read that was recommended by the BH forum, after The Four Pillars of Investing by Bernstein. I have the following questions from the text- Page 4...
by dbr
Mon Aug 31, 2015 9:55 am
Forum: Personal Consumer Issues
Topic: Road Trip; Denver, Casper, Deadwood, Mt. Rushmore
Replies: 16
Views: 720

Re: Road Trip; Denver, Casper, Deadwood, Mt. Rushmore

See the Crazy Horse monument and museum for sure.
by dbr
Mon Aug 31, 2015 9:49 am
Forum: Investing - Theory, News & General
Topic: Bogle: retirees should focus on dividends
Replies: 157
Views: 15598

Re: Bogle: retirees should focus on dividends

Bogle's response seems to indicate that dividends should not be reinvested but redeemed. For those of us who are in the age of MRD's, it seems that to reinvest, at least in retirement accounts, is wiser since we are "redeeming" the dividends with the MRD along with earlier interest/divide...
by dbr
Sun Aug 30, 2015 9:27 am
Forum: Investing - Help with Personal Investments
Topic: 401K changing bond options. Not sure what to do.
Replies: 3
Views: 239

Re: 401K changing bond options. Not sure what to do.

If your 401K has a directed brokerage option you should probably use it. If not I have no suggestion.
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: 9
Views: 711

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: 26
Views: 1767

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: 17
Views: 1113

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: 38
Views: 2830

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: 38
Views: 2729

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: 38
Views: 2729

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: 61
Views: 5566

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: 6
Views: 374

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: 866

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: 894

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: 866

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: 894

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: 61
Views: 5566

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: 484

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: 29
Views: 1656

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: 29
Views: 1656

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: 454

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: 454

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: 848

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: 18
Views: 2686

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: 2016

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: 55
Views: 6889

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: 2016

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: 55
Views: 6889

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: 55
Views: 6889

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: 482

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: 1755

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: 1029

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: 1755

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: 482

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: 3262

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: 3262

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: 4303

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: 1299

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...

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