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Re: Thinking about retiring early - tell me what I've missed

I also am unclear on the income calculations. How did you arrive at the $93K investment income and the $15K from the business?
by dbr
Tue Apr 22, 2014 6:53 pm
 
Forum: Investing - Help with Personal Investments
Topic: Thinking about retiring early - tell me what I've missed
Replies: 29
Views: 3076

Re: Compensating for inflation with a fixed pension?

One of the offsets is to maximize inflation indexed SS benefits by delaying SS as long as possible. This might be one of the best cases where delaying SS makes sense. In general what is going to happen is that portfolio withdrawals that will make up part of the total income will have to increase fas...
by dbr
Tue Apr 22, 2014 11:52 am
 
Forum: Investing - Help with Personal Investments
Topic: Compensating for inflation with a fixed pension?
Replies: 10
Views: 861

Re: Build Cash Reserves or Contribute to Taxable Account.

OTOH, having never experienced being out of work before, 2 years worth of income might really be the bare minimum I should have immediate access to? If by immediate we mean within a few days, most investors have immediate access to their entire invested assets. You can sell anything at a broker or ...
by dbr
Mon Apr 21, 2014 12:46 pm
 
Forum: Investing - Help with Personal Investments
Topic: Build Cash Reserves or Contribute to Taxable Account.
Replies: 5
Views: 1065

Re: Q&A with Jack Bogle at 2014 Bogleheads Conference

I hope that this time around there is some capability to publish the actual answers to questions rather than to try to discuss "reports" of what someone's answer might or might not have been heard to have been. Almost all the people who read and post on this forum will not be at the Confe...
by dbr
Mon Apr 21, 2014 12:31 pm
 
Forum: Investing - Theory, News & General
Topic: Q&A with Jack Bogle at 2014 Bogleheads Conference
Replies: 23
Views: 2176

Re: Q&A with Jack Bogle at 2014 Bogleheads Conference

I hope that this time around there is some capability to publish the actual answers to questions rather than to try to discuss "reports" of what someone's answer might or might not have been heard to have been. Almost all the people who read and post on this forum will not be at the Confer...
by dbr
Sun Apr 20, 2014 2:05 pm
 
Forum: Investing - Theory, News & General
Topic: Q&A with Jack Bogle at 2014 Bogleheads Conference
Replies: 23
Views: 2176

Re: Intro and Income Fund Question

Be sure you understand that unless a fund works some kind of magic free lunch (There are no funds that do this.), it is of no advantage to choose a fund because the dividend paid is high or paid at a frequent interval. Most any fund company will arrange to distribute fixed amounts of money from an a...
by dbr
Sun Apr 20, 2014 2:01 pm
 
Forum: Investing - Help with Personal Investments
Topic: Intro and Income Fund Question
Replies: 3
Views: 328

Re: The reverse world of retirement investing

Leeraar wrote:My Easter resolution is not to post in threads about withdrawal rates.

L.


That was my New Year's resolution. Maybe it is time to make it stick.
by dbr
Sun Apr 20, 2014 11:30 am
 
Forum: Investing - Theory, News & General
Topic: The reverse world of retirement investing
Replies: 34
Views: 4039

Re: The reverse world of retirement investing

Well, there are various "withdrawal" and/or spending strategies. "Spend only the dividends (and spend all the dividends)" is one kind of withdrawal strategy. It's not necessarily a crazy one, but it doesn't have the magic properties some of its advocates claim for it. "Take...
by dbr
Sun Apr 20, 2014 11:00 am
 
Forum: Investing - Theory, News & General
Topic: The reverse world of retirement investing
Replies: 34
Views: 4039

Re: Tax cost of "one fund in taxable"

To know exactly the consequences of one way of holding the assets compared to another, you would have to calculate the actual tax costs over many years for each scenario using your personal situation. The answer, in short, is "It depends." Factors that will affect the outcome include your ...
by dbr
Sun Apr 20, 2014 10:56 am
 
Forum: Investing - Theory, News & General
Topic: Tax cost of "one fund in taxable"
Replies: 7
Views: 1026

Re: The reverse world of retirement investing

Our initial withdrawal rate will simply be the RMD at age 70.5, i.e., 3.65% of our tax deferred accumulation. But we will be empirical about it, see how life goes in retirement but starting on a fairly conservative track. We expect that we will be reinvesting a fair bit of our RMD's within 3 years ...
by dbr
Sun Apr 20, 2014 10:47 am
 
Forum: Investing - Theory, News & General
Topic: The reverse world of retirement investing
Replies: 34
Views: 4039

Re: Build Cash Reserves or Contribute to Taxable Account.

Several months living expenses is perhaps 1% of your assets. What you do with that money for the moment makes absolutely no difference whatsoever. An issue here may be that you don't have a plan for how you allocate your assets. If you do have a plan for asset allocation in retirement and it include...
by dbr
Sun Apr 20, 2014 10:28 am
 
Forum: Investing - Help with Personal Investments
Topic: Build Cash Reserves or Contribute to Taxable Account.
Replies: 5
Views: 1065

Re: Beware Vanguard DOES NOT update all your account values

It looks like depending on Vanguard for this information is not working very well. But the question is why would one expect that it would. Keeping track of all one's assets strikes me as an "optional" service that isn't necessary. It could be other mutual fund companies provide a better se...
by dbr
Sun Apr 20, 2014 10:17 am
 
Forum: Investing - Theory, News & General
Topic: Beware Vanguard DOES NOT update all your account values
Replies: 56
Views: 4554

Re: The reverse world of retirement investing

I like your approach, Nisi. I am taking a "moderate" approach (when I retire next year). 50-50 stocks/nonstocks (the latter is not all bonds); 4% "traditional" SWR from our tax-advantaged investments, with ~1% from taxable, which is mainly a safety reserve. In other words your a...
by dbr
Sun Apr 20, 2014 10:12 am
 
Forum: Investing - Theory, News & General
Topic: The reverse world of retirement investing
Replies: 34
Views: 4039

Re: Blog:William Bernstein’s Coward’s Portfolio

As I noted in my earlier post, Bernstein has not changed his views - he's advocating simplicity for most investors because he believes that only 1% or so can implement and stick with a more complex slice-and-dice approach, even though there might be a "slight" advantage to slicing and dic...
by dbr
Sat Apr 19, 2014 12:59 pm
 
Forum: Investing - Theory, News & General
Topic: Blog:William Bernstein’s Coward’s Portfolio
Replies: 30
Views: 4665

Re: Does this strategy invite unnecessary risk?

I have followed Paul Merriman for a while and I like his approach to investing. I just wanted to clarify something that I think was in accurately stated about his recommendations by the OP. Merriman doesn't recommend tilting as a young investor, then not tilting as an older investor, He recommends ...
by dbr
Sat Apr 19, 2014 12:14 pm
 
Forum: Investing - Theory, News & General
Topic: Does this strategy invite unnecessary risk?
Replies: 42
Views: 2568

Re: 401k investment advice

Hi SpaceSashimi, would you mind me asking, what do you mean by I'm looking to invest in aggressive growth Maybe i phrased it strange, i just mean i can afford to invest in the most aggressive options since I'm so young. You should probably back up and not pay attention to labels that are put on fun...
by dbr
Sat Apr 19, 2014 11:00 am
 
Forum: Investing - Help with Personal Investments
Topic: 401k investment advice
Replies: 5
Views: 464

Re: Which: Dividend Growth or High Yield Dividend?

You are only interested in yield. One fund pays 1 percentage point higher than the other in yield. You have answered your own question. Yes, I'm interested in yield, but yield is not the total equation. I'm asking if there are any considerations other than yield for me not to switch funds. Thank yo...
by dbr
Fri Apr 18, 2014 4:54 pm
 
Forum: Investing - Help with Personal Investments
Topic: Which: Dividend Growth or High Yield Dividend?
Replies: 13
Views: 1437

Re: Which: Dividend Growth or High Yield Dividend?

You are only interested in yield. One fund pays 1 percentage point higher than the other in yield. You have answered your own question.
by dbr
Fri Apr 18, 2014 3:14 pm
 
Forum: Investing - Help with Personal Investments
Topic: Which: Dividend Growth or High Yield Dividend?
Replies: 13
Views: 1437

Re: Harvest Krane Intermediate Bond Fund

Why do you think you should move to 60/40? If you list your reasoning maybe it will be easier to think about. A lot of people find it strange to be so worried about bonds when the uncertainty in what will happen in your case is dominated by your stock investment. What thought do you have about your ...
by dbr
Fri Apr 18, 2014 11:37 am
 
Forum: Investing - Help with Personal Investments
Topic: Harvest Krane Intermediate Bond Fund
Replies: 5
Views: 325

Re: Harvest Krane Intermediate Bond Fund

Those are emerging markets bonds at .88% ER. It would be hard to find a bond fund less suitable to your needs than that.

Are you picking by chasing yield?
by dbr
Fri Apr 18, 2014 10:06 am
 
Forum: Investing - Help with Personal Investments
Topic: Harvest Krane Intermediate Bond Fund
Replies: 5
Views: 325

Re: Fixed Income Categories

Thanks, dbr... it seemed to me that in the context of that conversation, the planner was NOT referring only to money that might be needed in the time period between today and the duration of the typical intermediate term bond fund (we hold TBM and Int Term Tax Exempt). We also currently have been b...
by dbr
Fri Apr 18, 2014 9:41 am
 
Forum: Investing - Theory, News & General
Topic: Fixed Income Categories
Replies: 19
Views: 1168

Re: Fixed Income Categories

I think it is far better to talk about what investment specifically one might choose rather than worry about how to label that investment. For example, I bonds could make a lot of sense. How much sense they make has nothing to do with whether or not you can figure out that they are cash or bonds. I ...
by dbr
Fri Apr 18, 2014 8:45 am
 
Forum: Investing - Theory, News & General
Topic: Fixed Income Categories
Replies: 19
Views: 1168

Re: Does this strategy invite unnecessary risk?

My OP was not to suggest this 'idea' is the smart thing to do, but rather to ask if there is any validity to such a portfolio or if most people here totally disagree with this path. Previous surveys of the forum have shown that there is a pretty strong majority sentiment here to hold a significant ...
by dbr
Thu Apr 17, 2014 9:24 am
 
Forum: Investing - Theory, News & General
Topic: Does this strategy invite unnecessary risk?
Replies: 42
Views: 2568

Re: Does this strategy invite unnecessary risk?

This is just "tilting" and it's not idiotic so long as you know why you are doing it and use low-cost funds to do it (not individual stocks)... The idiotic part is the reference to "slight." OK, I agree with that. Putting 2% or 3% of your total lump into a tilt position really i...
by dbr
Wed Apr 16, 2014 5:42 pm
 
Forum: Investing - Theory, News & General
Topic: Does this strategy invite unnecessary risk?
Replies: 42
Views: 2568

Re: Does this strategy invite unnecessary risk?

The Wizard wrote:This is just "tilting" and it's not idiotic so long as you know why you are doing it and use low-cost funds to do it (not individual stocks)...


The idiotic part is the reference to "slight."
by dbr
Wed Apr 16, 2014 4:45 pm
 
Forum: Investing - Theory, News & General
Topic: Does this strategy invite unnecessary risk?
Replies: 42
Views: 2568

Re: Does this strategy invite unnecessary risk?

Telling people they should be "slightly" more invested in something or another is idiotic on the face of it.
by dbr
Wed Apr 16, 2014 4:11 pm
 
Forum: Investing - Theory, News & General
Topic: Does this strategy invite unnecessary risk?
Replies: 42
Views: 2568

Re: High Yield Bonds as an Annuity?

Those who criticize the high yield bond fund for "overspending" or "eating its own seed corn" are being hypocrites if they simultaneously admonish people to only look at total return of stock funds because "it doesn't matter how much the dividend payments are, it's only the...
by dbr
Wed Apr 16, 2014 3:23 pm
 
Forum: Investing - Theory, News & General
Topic: High Yield Bonds as an Annuity?
Replies: 23
Views: 1696

Re: High Yield Bonds as an Annuity?

I don't want to be part of a discussion about income, but I would urge discussion that does not confuse holding investments (bonds) with buying insurance (annuities). The idea of a bond, which is designed to ensure return of principal while providing uncertain income, is exactly opposite that of an ...
by dbr
Wed Apr 16, 2014 9:20 am
 
Forum: Investing - Theory, News & General
Topic: High Yield Bonds as an Annuity?
Replies: 23
Views: 1696

Re: Reducing employer stock exposure

P.S. Pretty amazing that only 10 companies make up 14.4% of all VTSAX's holdings. Wanting more company-level diversification seems like a strong incentive to tilt using small and mid cap funds. This, on the other hand, is always a striking observation, but I don't think I have ever seen an analysis...
by dbr
Wed Apr 16, 2014 9:00 am
 
Forum: Investing - Help with Personal Investments
Topic: Reducing employer stock exposure
Replies: 5
Views: 313

Re: Reducing employer stock exposure

As hoppy points out, 1%-2% is not significant, not even close.
by dbr
Wed Apr 16, 2014 8:58 am
 
Forum: Investing - Help with Personal Investments
Topic: Reducing employer stock exposure
Replies: 5
Views: 313

Re: Math challenged

Hey! Our cars are decent! I'm not planning on getting another one. My husband will get a "newer" car after he retires, and when I retire we'll go to one vehicle. Great idea to assuage guilt. our cars are 12-14 years old. :oops: Ha, ha! (insert Nelson Muntz https://www.youtube.com/watch?v=...
by dbr
Wed Apr 16, 2014 8:54 am
 
Forum: Investing - Theory, News & General
Topic: Math challenged
Replies: 18
Views: 1451

Re: what bond funds to hold(Bernstein's Sheltered Sam)

I understand the reason for holding bonds, to hedge against a market downturn(I think...). About holding those particular funds, it's because Mr. Bernstein suggested so. I admit I have very little knowledge in the different types of bonds out there(muni, federal, corporate and so on) and plan to ed...
by dbr
Wed Apr 16, 2014 8:49 am
 
Forum: Investing - Help with Personal Investments
Topic: what bond funds to hold(Bernstein's Sheltered Sam)
Replies: 7
Views: 885

Re: Math challenged

our cars are 12-14 years old. :oops: Ha, ha! (insert Nelson Muntz https://www.youtube.com/watch?v=rX7wtNOkuHo ) Mine are older than that :D But seriously, you are an example of how to be successful at managing this thing, and you can have decent cars too in the long run -- I mean there is more than...
by dbr
Wed Apr 16, 2014 8:38 am
 
Forum: Investing - Theory, News & General
Topic: Math challenged
Replies: 18
Views: 1451

Re: Please Help me understand 3-fund portfolio

To my original reason for this post, I am trying to understand the basic reason for a 3 fund portfolio. Do people use the 3 fund portfolio because two funds (listed above) are expected to increase if one fund were to fall (for example, if the US Stock Market drops by 30%, do people expect the Bond ...
by dbr
Wed Apr 16, 2014 8:31 am
 
Forum: Investing - Theory, News & General
Topic: Please Help me understand 3-fund portfolio
Replies: 21
Views: 2252

Re: Help with Improving my Portfolio

I'm thinking to buy the 4 funds separately rather than as the LIfe Strategy fund because it seems to give me more freedom for tax efficiency and more freedom to change the percentages if I get braver in the future. Does this make sense or is it just as good to put everything in the Life Strategy Mo...
by dbr
Tue Apr 15, 2014 8:24 am
 
Forum: Investing - Help with Personal Investments
Topic: Help with Improving my Portfolio
Replies: 45
Views: 2729

Re: Math challenged

Or just stupid. 😁 I understand about PE ratios and total returns (more or less) and get the advantage of Vanguard index funds being cheaper versus many 401k funds. Now for what I don't get. How does that translate number-wise? For instance, If a person had a 1m portfolio what does the extra 1% in f...
by dbr
Mon Apr 14, 2014 6:57 pm
 
Forum: Investing - Theory, News & General
Topic: Math challenged
Replies: 18
Views: 1451

Re: Save for 25 years = $1million?

The OP posed the question in a way that the saver would not save a constant amount each year, but would be able to increase it a bit every year. I think that's a nice way to think about it. I know that we were able to save more and more each year as we stopped buying things and our mortgage payment...
by dbr
Mon Apr 14, 2014 6:51 pm
 
Forum: Investing - Help with Personal Investments
Topic: Save for 25 years = $1million?
Replies: 22
Views: 4006

Re: Help with Improving my Portfolio

I think retiredjg and others are sending you in the right direction. There seem to be a lot of questions about these funds: 1.7% Mutual Beacon (BEGRX) (0.84 %) Held at Franklin Templeton 1.72% Mutual Quest Z (MQIFX ) (.90 %) Held at Franklin Templeton 3.01 % TRowe Price Equity Income PRFDX (.68%) He...
by dbr
Mon Apr 14, 2014 6:46 pm
 
Forum: Investing - Help with Personal Investments
Topic: Help with Improving my Portfolio
Replies: 45
Views: 2729

Re: LED bulb prices

"My led bulbs that are on dimmers give off a horrible humming noise. I did use Cree 60watt a19 style bulbs in my recessed canisters but I don't believe this to be a problem as I have used regular incandescent bulbs in these recessed canisters before with no noise problem. I really can't believ...
by dbr
Mon Apr 14, 2014 12:06 pm
 
Forum: Personal Consumer Issues
Topic: LED bulb prices
Replies: 111
Views: 8620

Re: SCV premium is a history/math story, its not scientific

Strangely enough, I agree with Larry above as well as with what Nisi wrote. But the point is that as believable as the analysis is, in my judgement it does not dictate that an investor "should" seek the advantages of small and value premiums. It does dictate that an investor can feel able ...
by dbr
Mon Apr 14, 2014 9:01 am
 
Forum: Investing - Theory, News & General
Topic: SCV premium is a history/math story, its not scientific
Replies: 46
Views: 2266

Re: The market portfolio vs. value tilts

When this question was presented to Larry S.in a BH post, he seemed to agree that either way, increasing the equity allocation OR tilting, would potentially increase both the expected return and the risk of the portfolio by a similar amount. What tilting does (that simply increasing the equity allo...
by dbr
Mon Apr 14, 2014 8:54 am
 
Forum: Investing - Theory, News & General
Topic: The market portfolio vs. value tilts
Replies: 66
Views: 3187

Re: Help with Improving my Portfolio

I do not understand: 1) How you have no idea what you will spend in retirement and 2) Why you will have no social security benefit - either your own or ex spouse or widow benefit It seems to me if you are not able to live on roughly $36K of income from a $900K portfolio that this is a train wreck s...
by dbr
Mon Apr 14, 2014 8:50 am
 
Forum: Investing - Help with Personal Investments
Topic: Help with Improving my Portfolio
Replies: 45
Views: 2729

Re: suggestion for awd luxury sedan

I have also been looking around for a car replacement and so far I'm not seeing anything in the awd so-called luxury sedan segment that seems to make sense. I am also not an SUV enthusiast, even for the so-called crossover designs. At this point I may well be looking forward to owning a 16-17-18 yea...
by dbr
Mon Apr 14, 2014 8:47 am
 
Forum: Personal Consumer Issues
Topic: suggestion for awd luxury sedan
Replies: 44
Views: 3490

Re: The Case for Dividend Stocks in Retirement (article)

That article is probably more in the category of "not even wrong" than it is erroneous.
by dbr
Mon Apr 14, 2014 8:43 am
 
Forum: Investing - Theory, News & General
Topic: The Case for Dividend Stocks in Retirement (article)
Replies: 27
Views: 2252

Re: SCV premium is a history/math story, its not scientific

The comments above are outstanding and should be enshrined somewhere.
by dbr
Mon Apr 14, 2014 8:41 am
 
Forum: Investing - Theory, News & General
Topic: SCV premium is a history/math story, its not scientific
Replies: 46
Views: 2266

Re: Financial plan for pensioned in-laws

Target Retirement income or Life Strategy Income are as aggressive as I would suggest for very conservative parents who have reached their goal. For my own knowledge, why would you recommend a very conservative asset allocation for a couple who, as the original poster stated, has all of their expen...
by dbr
Mon Apr 14, 2014 8:37 am
 
Forum: Investing - Help with Personal Investments
Topic: Financial plan for pensioned in-laws
Replies: 19
Views: 1204

Re: Portfolio Volatility is a Big Drag on Returns

All of the above and the geometric mean is for compounding, which takes us full circle to investing. There is also the quadratic mean useful for calculating power in electrical circuits and that also turns up in finding the standard deviation of products of independent random variables. The latter i...
by dbr
Sun Apr 13, 2014 11:28 pm
 
Forum: Investing - Theory, News & General
Topic: Portfolio Volatility is a Big Drag on Returns
Replies: 25
Views: 1884

Re: Portfolio Volatility is a Big Drag on Returns

Then there is this: http://en.wikipedia.org/wiki/Generalized_mean and even this: http://en.wikipedia.org/wiki/Quasi-arithmetic_mean Or . . . maybe we should apply this one in which we cause the difference between arithmetic and geometric to disappear: http://en.wikipedia.org/wiki/Arithmetic-geometri...
by dbr
Sun Apr 13, 2014 8:59 pm
 
Forum: Investing - Theory, News & General
Topic: Portfolio Volatility is a Big Drag on Returns
Replies: 25
Views: 1884

Re: Help with Improving my Portfolio

What I pick up here is a lot of uncertainty about income and spending. I am trying to reconcile several statements about needing $500K to live on for awhile at what appears to be a spending rate of maybe $100K a year but then saying being able to invest for a retirement income of $37K for life would...
by dbr
Sun Apr 13, 2014 2:41 pm
 
Forum: Investing - Help with Personal Investments
Topic: Help with Improving my Portfolio
Replies: 45
Views: 2729

Re: Financial plan for pensioned in-laws

Strangely enough the most appropriate thing to do might be for them to start here: http://www.bogleheads.org/wiki/Getting_started It really is all about learning the fundamentals of investing (and even financial planning) from the beginning. The questions you are asking might well fall toward the en...
by dbr
Sun Apr 13, 2014 2:11 pm
 
Forum: Investing - Help with Personal Investments
Topic: Financial plan for pensioned in-laws
Replies: 19
Views: 1204
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