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Re: Investments for Kids

It seems to me that all these parents who are worried their kids are going to spend their UTMA on "hookers and blow" (modern version) or "wine women and song" (old school version) have bigger issues to worry about than the $20 or $30K that their kid is potentially going to waste...
by dbr
Sun Aug 31, 2014 11:51 am
 
Forum: Investing - Help with Personal Investments
Topic: Investments for Kids
Replies: 15
Views: 947

Re: My husband's " WILL", $ left for me to live on....

I am not so sure the mentality displayed in this case is all that unusual. People do become multimillionaires and still don't really understand why anyone would need to live on more than $60,000 a year. A wife is expected to be a partner in that. The money is a symbol of accomplishment and not relat...
by dbr
Sun Aug 31, 2014 10:02 am
 
Forum: Personal Finance (Not Investing)
Topic: My husband's " WILL", $ left for me to live on....
Replies: 258
Views: 16330

Re: My husband's " WILL", $ left for me to live on....

I know of a person who was in a situation very similar to this, amazingly so, in fact. The husband has since died and his children have walked off with millions of dollars while the person of I know has ended up in the half million or so range, pretty much like here, and at this point little likelih...
by dbr
Sat Aug 30, 2014 3:49 pm
 
Forum: Personal Finance (Not Investing)
Topic: My husband's " WILL", $ left for me to live on....
Replies: 258
Views: 16330

Re: Safe floor and Safe Withdrawal Rate

Leeraar wrote:It's a question of cash flow. That's the way to look at it.

What do you need to live on? Make a spreadsheet with a line for every year from now until you are age 75. Yearly expenses go in 3 columns: Must Have, Nice to Have, and Luxuries.



Muuust . . have . . luxuries (drool) . .
by dbr
Sat Aug 30, 2014 2:50 pm
 
Forum: Investing - Theory, News & General
Topic: Safe floor and Safe Withdrawal Rate
Replies: 19
Views: 1295

Re: Why is my 401k and taxable considered "One Portfolio"?

Money is fungible. If you were going to two stores and were going to spend $10 at each store, would you put $10 in one pocket and $10 in another pocket or would you just put $20 in your wallet and be able to mentally keep them separated? While I generally agree, to continue with this example, you c...
by dbr
Sat Aug 30, 2014 1:51 pm
 
Forum: Investing - Theory, News & General
Topic: Why is my 401k and taxable considered "One Portfolio"?
Replies: 12
Views: 811

Re: Does anyone have 'Lazy Portfolios'?

One thing that I find particularly telling is that the usual S&D'er is quite respectful of a 3-fund portfolio and realize that it is a completely sane option. Rarely do I see the same thinking coming from the other direction. I am not exactly a 3-fund investor but very close to it, and I totall...
by dbr
Sat Aug 30, 2014 1:47 pm
 
Forum: Investing - Theory, News & General
Topic: Does anyone have 'Lazy Portfolios'?
Replies: 69
Views: 3684

Re: Help me compare 2 bond funds

Question 1: Should I focus on 'yield to worst' or 30 day SEC yield? (and what to do w/o this "worst" stat on the VG fund?) Others can focus on the nuances of specific bond portfolios in this case, but what you should focus on in the data provided is the duration and the credit quality. Th...
by dbr
Sat Aug 30, 2014 1:42 pm
 
Forum: Investing - Help with Personal Investments
Topic: Help me compare 2 bond funds
Replies: 4
Views: 436

Re: Why is my 401k and taxable considered "One Portfolio"?

Theoretical question: Each account has different investment goals (retirement vs. 15yr wealth accumulation).... Shouldn't they thus have different AA's? Practical question: My 401k and taxable has equal balances ($200k each). If I truly follow Boglehead principles, and want 30% international exposu...
by dbr
Sat Aug 30, 2014 1:33 pm
 
Forum: Investing - Theory, News & General
Topic: Why is my 401k and taxable considered "One Portfolio"?
Replies: 12
Views: 811

Re: Portfolio Loss Calculator

Is the problem how to do the arithmetic or how to know what numbers to use to represent a dip?

Usually a calculator just does arithmetic and does not analyze what a dip means.
by dbr
Sat Aug 30, 2014 12:15 pm
 
Forum: Investing - Theory, News & General
Topic: Portfolio Loss Calculator
Replies: 3
Views: 340

Re: Safe floor and Safe Withdrawal Rate

That said, similarly Dr. William Bernstein has posted that one should have a "large hoard of cash or short-intermediate high quality bonds" -- IN retirement, it should cover 20 years of basic living expenses. http://www.bogleheads.org/forum/viewtopic.php?f=10&t=120512&p=1761836&am...
by dbr
Sat Aug 30, 2014 10:53 am
 
Forum: Investing - Theory, News & General
Topic: Safe floor and Safe Withdrawal Rate
Replies: 19
Views: 1295

Re: Father died. How to handle his company stock?

"Raising your tax bracket" is not a relevant consideration. Realizing a gain might move you from the 0% bracket to the 10% bracket, but the long term gain could all be taxed at 0%. Realizing a gain might move you from the 10% bracket to the 15% bracket, but the long term gain could all be...
by dbr
Sat Aug 30, 2014 10:04 am
 
Forum: Personal Finance (Not Investing)
Topic: Father died. How to handle his company stock?
Replies: 27
Views: 2061

Re: Safe floor and Safe Withdrawal Rate

A safe floor is a guaranteed, inflation indexed income stream that covers whatever your idea is of the income you absolutely have to/want to have. To be an income stream that pretty much needs to be an annuity. A TIPS ladder can work except that a ladder of bonds by definition has a fixed term at wh...
by dbr
Sat Aug 30, 2014 10:03 am
 
Forum: Investing - Theory, News & General
Topic: Safe floor and Safe Withdrawal Rate
Replies: 19
Views: 1295

Re: Investments for Kids

You can read a lot on the subject of custodial accounts for kids that turns up here in threads from time to time and also here: http://fairmark.com/forum/list.php?1 There tends to be some negativity about starting custodial accounts for the following reasons: 1. Such an account is a realized gift to...
by dbr
Sat Aug 30, 2014 9:40 am
 
Forum: Investing - Help with Personal Investments
Topic: Investments for Kids
Replies: 15
Views: 947

Re: Resetting Equity Target -a.k.a Portfolio Allocation

As others are pointing out you are not expecting to depend on your assets for enough income to be concerned about your asset allocation. It is true that at a higher rate of withdrawal it can be dangerous to have an insufficient allocation to stocks. Also, you plan to have 70% of your income from an ...
by dbr
Sat Aug 30, 2014 9:19 am
 
Forum: Investing - Help with Personal Investments
Topic: Resetting Equity Target -a.k.a Portfolio Allocation
Replies: 16
Views: 931

Re: Father died. How to handle his company stock?

I'm dealing with a similar situation, in terms of helping my parents straighten out their finances, and 20% of their stock holdings are in one company, IBM. Thank God mom invested in IBM 20 years ago - it grew about 15x over the past 20 years. But, I'm concerned that 20% of their portfolio is in on...
by dbr
Sat Aug 30, 2014 9:00 am
 
Forum: Personal Finance (Not Investing)
Topic: Father died. How to handle his company stock?
Replies: 27
Views: 2061

Re: should I buy a 5 yr annuity to get me to 70

The annuity makes no sense. Just withdraw the 500-600 from your assets and get over the trauma.
by dbr
Fri Aug 29, 2014 5:40 pm
 
Forum: Personal Finance (Not Investing)
Topic: should I buy a 5 yr annuity to get me to 70
Replies: 8
Views: 685

Re: Withdrawl from Target Retirement or Life Strategy Fund

Thanks What about the statement to have 5 years in cash if you are in retirement so you don't touch your portfolio in a down market? Paul Where are you going to get the cash? In my book the cash is part of the portfolio, so if you spend it you have touched the portfolio. If you have cash and you do...
by dbr
Fri Aug 29, 2014 12:36 pm
 
Forum: Investing - Help with Personal Investments
Topic: Withdrawl from Target Retirement or Life Strategy Fund
Replies: 47
Views: 3597

Re: Father died. How to handle his company stock?

Yes, unless there is something unusual there is a step-up in basis and the wife should sell the stock immediately except . . .

. . . given the asking of the question I think the wife should see a tax accountant about this and other tax questions immediately and before doing anything.
by dbr
Fri Aug 29, 2014 10:36 am
 
Forum: Personal Finance (Not Investing)
Topic: Father died. How to handle his company stock?
Replies: 27
Views: 2061

Re: Inflation Protected Securities

There is absolutely nothing that any investor "needs" to do or "should" except one thing and that is learn enough about investing to decide for oneself how to invest. The good news is that there are enough books to read (see the Wiki Library) and discussions to follow on this for...
by dbr
Fri Aug 29, 2014 10:08 am
 
Forum: Investing - Help with Personal Investments
Topic: Inflation Protected Securities
Replies: 14
Views: 1563

Re: Withdrawl from Target Retirement or Life Strategy Fund

bertilak Any other examples or ideas on liability-matched (or safe floor) portfolio besides annuities and bond ladders? Currently I have 3 years of cash (safe floor) and the rest of my retirement money in LifeStratery conservative growth. Not happy with my safe floor. Thanks You shouldn't be happy....
by dbr
Fri Aug 29, 2014 9:55 am
 
Forum: Investing - Help with Personal Investments
Topic: Withdrawl from Target Retirement or Life Strategy Fund
Replies: 47
Views: 3597

Re: Protecting one's bank account from PayPal

I don't use PayPal and any business that insists on it doesn't exist as far as I an concerned. I haven't missed anything I wanted to buy or do as a consequence.
by dbr
Fri Aug 29, 2014 9:38 am
 
Forum: Personal Finance (Not Investing)
Topic: Protecting one's bank account from PayPal
Replies: 26
Views: 2226

Re: Question on ESOPs

Does anyone know the implications of a partial direct rollover from an ESOP to an IRA? I'm reading some of the fine print, "Any eligible amount not directly rolled over will be subject to the 20% federal income tax withholding". I'd like roll some of it to an IRA and leave the balance in ...
by dbr
Thu Aug 28, 2014 4:40 pm
 
Forum: Investing - Help with Personal Investments
Topic: Question on ESOPs
Replies: 8
Views: 297

Re: When, if ever, should an annuity be used in retirement p

I believe there is a chapter in Jim Otar's book regarding when an SPIA makes the most sense: http://www.retirementoptimizer.com/ If you accept the reasoning of the Liability Matching Portfolio, then an inflation indexed SPIA would be a building block tool for providing income in retirement. Doing th...
by dbr
Thu Aug 28, 2014 2:48 pm
 
Forum: Investing - Help with Personal Investments
Topic: When, if ever, should an annuity be used in retirement plans
Replies: 32
Views: 2299

Re: TLH vs. TGH

Paying an admission fee to participate in a market timing lottery doesn't make much sense to me.
by dbr
Thu Aug 28, 2014 12:01 pm
 
Forum: Investing - Help with Personal Investments
Topic: TLH vs. TGH
Replies: 5
Views: 212

Re: TLH vs. TGH

Yes, this part: "If in the future I have a gut feeling the market is starting to turn . . . " But you already know that.
by dbr
Thu Aug 28, 2014 11:47 am
 
Forum: Investing - Help with Personal Investments
Topic: TLH vs. TGH
Replies: 5
Views: 212

Re: How sustainable if the inflation adjusted income of VTSM

I believe the historical rate of dividend payout from stocks has dropped substantially over the decades. This is one article on the subject: http://www.advisorperspectives.com/dshort/updates/History-of-Stock-Dividends.php In any case, as suggested in the response above, planning on stock dividends b...
by dbr
Wed Aug 27, 2014 2:34 pm
 
Forum: Investing - Help with Personal Investments
Topic: How sustainable if the inflation adjusted income of VTSMX?
Replies: 6
Views: 791

Re: How do you calculate your return rate?

The XIRR function in Excel or its equivalents in other spreadsheets does this problem.
by dbr
Wed Aug 27, 2014 2:16 pm
 
Forum: Investing - Help with Personal Investments
Topic: How do you calculate your return rate?
Replies: 5
Views: 384

Re: strategy to get brokerage bonuses

You could get 50,000 ff miles on DL, AA, or UA at Fidelity for a $100K account repeated annually to some unspecified number of repetitions Are you sure this is true? My rep seems to have told me I could only do it once in any existing account. I have a lot of cash, I could just transfer out of Fide...
by dbr
Wed Aug 27, 2014 9:26 am
 
Forum: Personal Finance (Not Investing)
Topic: strategy to get brokerage bonuses
Replies: 50
Views: 3046

Re: Best time to exercise stock options

When they are vested and you are allowed to sell perhaps? You're already invested once.. your DW paycheck and benefits. Holding anything significant beyond that (pumping money in to stock options) doesn't seem like a safe thing to do. No, presumably these are grants of management stock options whic...
by dbr
Tue Aug 26, 2014 3:57 pm
 
Forum: Investing - Theory, News & General
Topic: Best time to exercise stock options
Replies: 10
Views: 868

Re: strategy to get brokerage bonuses

$2500 for $1M transfer seems to be the top end deal. I had received $1,200 from Schwab for transferring $500k in, as a match to a Fidelity offer. Seems .25% is the standard ratio. You could get 50,000 ff miles on DL, AA, or UA at Fidelity for a $100K account repeated annually to some unspecified nu...
by dbr
Tue Aug 26, 2014 3:16 pm
 
Forum: Personal Finance (Not Investing)
Topic: strategy to get brokerage bonuses
Replies: 50
Views: 3046

Re: Do vanguard funds compound monthly?

What about the VFFVX Vanguard Target Retirement 2055 Fund Investor Shares? I have both dividends and capital gains set to 'reinvest'. Is this a good fund to invest at age 22? If so, when should I start branching out and investing in other vanguard funds? Thanks. As long as the asset allocation in t...
by dbr
Tue Aug 26, 2014 12:52 pm
 
Forum: Investing - Help with Personal Investments
Topic: Do vanguard funds compound monthly?
Replies: 11
Views: 1243

Re: Bond fund in taxable account (CA resident)

I realize my whole municipal bond allocation is California. My California muni bond allocation is 16% of total bond allocation. Is there an analyst who thinks this is okay?:) I don't know about analyst, but if you want an opinion from a random poster on the Internet, 16% of bonds, which in turn is ...
by dbr
Tue Aug 26, 2014 11:47 am
 
Forum: Investing - Help with Personal Investments
Topic: Bond fund in taxable account (CA resident)
Replies: 14
Views: 1073

Re: strategy to get brokerage bonuses

It is a bit like the free dinner offered for attending the retirement presentation. A certain percentage that go for just the free dinner end up paying a heavy price. So, anytime there is an attractive bonus you really need to not get ensnared by fine print gotchas or being lured into products or s...
by dbr
Tue Aug 26, 2014 11:09 am
 
Forum: Personal Finance (Not Investing)
Topic: strategy to get brokerage bonuses
Replies: 50
Views: 3046

Re: Fee-Only Advisor Cost?

dbr is confusing the issue as ani686 is referencing the planner his business used to establish and monitor their company's 401(k). There is a substantial amount of work required on the front end and also ongoing maintenance to serve the participants of the plan. An advisor and/or firm that undertak...
by dbr
Tue Aug 26, 2014 11:02 am
 
Forum: Personal Finance (Not Investing)
Topic: Fee-Only Advisor Cost?
Replies: 26
Views: 1465

Re: Fee-Only Advisor Cost?

Anyway - total cost for our business (should be cheaper for an individual) is $300/quarter - our planner uses VG etfs/funds to construct simple tilted or three fund portfolios. Just my experience and hope it helps. This is a typical example of the problem. A financial plan should not need ongoing p...
by dbr
Tue Aug 26, 2014 10:43 am
 
Forum: Personal Finance (Not Investing)
Topic: Fee-Only Advisor Cost?
Replies: 26
Views: 1465

Re: Really dumb question from a newbie. passive investing

That is pretty much the idea. One thing to be added is that rebalancing is recommended. Rebalancing means that as some assets rise or fall in value differently from other assets, stocks vs bonds, for example, the asset allocation drifts away from the intended balance. If that gets too far out of han...
by dbr
Tue Aug 26, 2014 10:00 am
 
Forum: Investing - Theory, News & General
Topic: Really dumb question from a newbie. passive investing
Replies: 6
Views: 769

Re: Do vanguard funds compound monthly?

This is not correct for many (probably most) Vanguard Bond Funds. For example, the GNMA Fund pays dividends at the end of each month. Payment of that end-of-month dividend does NOT affect the Net Asset Value of the GNMA Fund shares. In addition, the monthly dividend on the GNMA fund is calculated o...
by dbr
Tue Aug 26, 2014 9:41 am
 
Forum: Investing - Help with Personal Investments
Topic: Do vanguard funds compound monthly?
Replies: 11
Views: 1243

Re: Do vanguard funds compound monthly?

Well, assuming you're reinvesting dividends, that's the functional equivalent of "compounding," yes? Although I'm gathering here that it's not proper terminology to call reinvesting dividends "compounding." Yes? No? Maybe? No, not exactly because the growth in value of a mutual ...
by dbr
Mon Aug 25, 2014 11:36 pm
 
Forum: Investing - Help with Personal Investments
Topic: Do vanguard funds compound monthly?
Replies: 11
Views: 1243

Re: Do vanguard funds compound monthly?

What is the length of compounding for vanguard funds? Daily, monthly, semi-annually or annually? I read somewhere that the more frequent the compounding the greater the effect of compounding over many years. Compounding in this sense does not apply to mutual funds. The value of a mutual fund is det...
by dbr
Mon Aug 25, 2014 11:01 pm
 
Forum: Investing - Help with Personal Investments
Topic: Do vanguard funds compound monthly?
Replies: 11
Views: 1243

Re: Trying to understand the 1040 Tax Table

Effective tax rate, while interesting, is useless for decision making. All decisions to recognize additional income or accelerate deductions are based on the marginal rate. Exactly. Marginal rate is useful for comparing decisions between or among alternatives, all else being equal. Effective rate t...
by dbr
Mon Aug 25, 2014 10:10 pm
 
Forum: Personal Finance (Not Investing)
Topic: Trying to understand the 1040 Tax Table
Replies: 36
Views: 2269

Re: Schwab Financial Consultant

Sounds like another name for advisor = salesman = unabashed shill for Schwab products.

You can just ignore his existence. If you have account issues, need documentation, etc., there is certainly a customer service phone number, etc.
by dbr
Mon Aug 25, 2014 4:13 pm
 
Forum: Investing - Help with Personal Investments
Topic: Schwab Financial Consultant
Replies: 10
Views: 917

Re: Rate of Return

Of course, as you noticed, when the estimate for return is reduced the safe consumption is reduced. There is a safe rate of withdrawal but not a safe return. You could decide a rate of consumption and by trial and error find the rates of return that allow that rate of consumption to be reached. You ...
by dbr
Mon Aug 25, 2014 2:11 pm
 
Forum: Investing - Theory, News & General
Topic: Rate of Return
Replies: 3
Views: 432

Re: 100% stock AA-> At what age to add bonds?

There is only one LARGE problem here and that is that bonds CAN and usually DO improve your returns, within a certain range of bond allocation when you are in retirement and in the process of spending money from your account. This is where Sequence of Return risk bites you in the backside, without ...
by dbr
Mon Aug 25, 2014 1:39 pm
 
Forum: Investing - Theory, News & General
Topic: 100% stock AA-> At what age to add bonds?
Replies: 58
Views: 3672

Re: Moving from UBS to Vanguard

Kind of scared me when I read this because I have a Spartan three fund portfolio but all three funds are in a tax deferred account. So would I be better off if I moved the Total Stock index and the Total International Index into a separate taxable account? And what's the advantage to having these f...
by dbr
Mon Aug 25, 2014 12:47 pm
 
Forum: Investing - Help with Personal Investments
Topic: Moving from UBS to Vanguard
Replies: 18
Views: 1244

Re: Can a Commodities Fund be a Long-Term Investment?

few things Second re PCRIX as pointed out seems you are making the very bad mistake of looking at PRICE ONLY returns, not total returns. Same thing can happen say with REITS which are required to pay out almost all earnings.. Larry May be I have to wait longer but my experience with CCF (PCRDX and ...
by dbr
Mon Aug 25, 2014 11:29 am
 
Forum: Investing - Theory, News & General
Topic: Can a Commodities Fund be a Long-Term Investment?
Replies: 45
Views: 2676

Re: Dividend Excel Spreadsheet

I don't. I let my brokerage take care of it. If you bought a stock after Jan 1, 2012, your brokerage will calculate the cost basis for you without any input from you (but you can, at your own doing, request FIFO, LIFO). Oh you dont? I've read some where in boglehead forum about keeping record of di...
by dbr
Mon Aug 25, 2014 10:04 am
 
Forum: Investing - Help with Personal Investments
Topic: Dividend Excel Spreadsheet
Replies: 4
Views: 629

Re: strategy to get brokerage bonuses

livesoft wrote: The only unknown is whether Fidelity will send me a 1099DIV for the value of the frequent flyer miles to me or not.



No 1099. As mentioned, this may be different with cash bonuses.
by dbr
Mon Aug 25, 2014 9:57 am
 
Forum: Personal Finance (Not Investing)
Topic: strategy to get brokerage bonuses
Replies: 50
Views: 3046

Re: Muni vs TIPS vs TBM

80% equities is more than enough inflation-protection... Are stocks really a hedge against inflation? http://inflationdata.com/articles/2012/01/21/inflation-stock-market-correlation/ http://www.cbsnews.com/news/how-inflation-affects-the-stock-market/ Seems to say there is not a tight correlation. R...
by dbr
Mon Aug 25, 2014 9:50 am
 
Forum: Investing - Help with Personal Investments
Topic: Muni vs TIPS vs TBM
Replies: 9
Views: 1245

Re: I need "Ultra High Net Worth" investing advice please

I look at it this way...You buy a Ferrari and you know service isn't going to be cheap, but you still have people take there's to an independent tech and scratch there head when something horrible goes wrong. I'm a believer in you get what you pay for and this is no different. A lot of people on th...
by dbr
Sun Aug 24, 2014 7:10 pm
 
Forum: Investing - Help with Personal Investments
Topic: I need "Ultra High Net Worth" investing advice please
Replies: 215
Views: 15310
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