Search found 16270 matches

by dbr
Wed Jul 22, 2015 9:20 pm
Forum: Investing - Help with Personal Investments
Topic: Mom Investment CEO Needs Help!
Replies: 26
Views: 2189

Re: Mom Investment CEO Needs Help!

Most likely the biggest effect on prospects at this time is to work as long as possible (one and/or both of you) and save as much more as possible. If the plan is for your husband to retire within a couple of years, a reasonable desire, then there isn't a lot asset allocation can do. The biggest two...
by dbr
Wed Jul 22, 2015 5:26 pm
Forum: Investing - Theory, News & General
Topic: "The Value of Financial Advice" by Wade Pfau
Replies: 13
Views: 2162

Re: "The Value of Financial Advice" by Wade Pfau

I think the vast majority of investors would benefit from high-quality, low-cost financial planning and investment management. However, that is a surprisingly rare commodity and difficult to find until you pretty much know enough to do it yourself if you so wish. Rather than asking people who use a...
by dbr
Wed Jul 22, 2015 4:30 pm
Forum: Investing - Theory, News & General
Topic: Annuities-when and why?
Replies: 43
Views: 4045

Re: Annuities-when and why?

itstoomuch: It doesn't matter if money in an IRA came from an annuity or not. All money that is taken out of an IRA is Taxed at current income rates. It doesn't matter if the income came from an annuity or from stock gains or interest or capital gains or dividends or bond interest. The theoretical ...
by dbr
Wed Jul 22, 2015 4:25 pm
Forum: Investing - Theory, News & General
Topic: The "No Bonds" portfolio
Replies: 80
Views: 11022

Re: The "No Bonds" portfolio

So if not bonds in an IRA, what is the alternative aside of 100% equities? Depends on what you mean by bonds. Here, the OP is just using CDs, so nothing much exciting. CDs are pretty much bonds, being debt instruments of essentially the same structure with similar risk and return. A lot of people w...
by dbr
Wed Jul 22, 2015 4:24 pm
Forum: Investing - Theory, News & General
Topic: "The Value of Financial Advice" by Wade Pfau
Replies: 13
Views: 2162

Re: "The Value of Financial Advice" by Wade Pfau

The final problem is most investors who need a good advisor do not recognize the need, and could not make a good choice even if they realized they needed help. Paul Paul makes a good point. It may be that the ability to find a good advisor exceeds that to be a good investor. The individual investor...
by dbr
Wed Jul 22, 2015 4:16 pm
Forum: Investing - Help with Personal Investments
Topic: Inexperienced Trustee
Replies: 53
Views: 3382

Re: Inexperienced Trustee

Color me paranoid but what legal exposure do you have personally for accepting what is likely to be an impossible-to-fulfill trust requirement? Agree and I have to wonder what attorney would put that into a trust although at one time that may not have sounded like an impossible task. It just doesn'...
by dbr
Wed Jul 22, 2015 4:12 pm
Forum: Investing - Help with Personal Investments
Topic: Mom Investment CEO Needs Help!
Replies: 26
Views: 2189

Re: Mom Investment CEO Needs Help!

I think a really important step to start now is planning for what your income and expenses can be when your husband retires, assuming you have no intention of working yourself. I see savings about $700K give or take a bunch (do I have that right?). If you apply the infamous 4% rule, that funds about...
by dbr
Wed Jul 22, 2015 9:35 am
Forum: Personal Finance (Not Investing)
Topic: honda civic or Prius?
Replies: 86
Views: 7195

Re: honda civic or Prius?

If a certain car has a deal breaker design feature then don't buy it. Presumably the Prius V wagon does not have that feature, right? In my recent search I wanted to buy a sedan with AWD but found current designs all offered such lousy visibility out the car to back and rear that it was a deal break...
by dbr
Wed Jul 22, 2015 8:34 am
Forum: Personal Consumer Issues
Topic: Problem w/ vehicle, dealership shrugs shoulders
Replies: 24
Views: 2252

Re: Problem w/ vehicle, dealership shrugs shoulders

Take it to an independent mechanic you can trust. If you don't have one, now is a good time to find one. As a last ditch back up try a different dealer.
by dbr
Wed Jul 22, 2015 8:28 am
Forum: Investing - Help with Personal Investments
Topic: asset allocation: based on pure or real investment?
Replies: 9
Views: 750

Re: asset allocation: based on pure or real investment?

An alternative in the specific case of tilting to small and value is to find the data to compute Fama-French factor loadings and mess with those. Some people use DFA funds to try to get more of the elusive purity. I don't do any of that myself.
by dbr
Tue Jul 21, 2015 12:38 pm
Forum: Investing - Help with Personal Investments
Topic: Inexperienced Trustee
Replies: 53
Views: 3382

Re: Inexperienced Trustee

As mentioned above, it would be a good idea for any inexperienced trustee to consult their own attorney regarding obligations and legal hazards. There certainly needs to be a discussion about the 6% returns. As also mentioned, managing taxes might justify consulting a tax accountant. The attorney mi...
by dbr
Tue Jul 21, 2015 11:52 am
Forum: Investing - Theory, News & General
Topic: How do you pick TLH partners?
Replies: 6
Views: 478

Re: How do you pick TLH partners?

Typically I just park the money in cash and eat the 60 days (at Vanguard). It's cleanest that way, as I don't think "substantially equal" has ever been specifically defined by the IRS. I should note that my TLH usually is not a lot of money relative to the whole, so missing 30 or even 60 ...
by dbr
Tue Jul 21, 2015 8:35 am
Forum: Investing - Help with Personal Investments
Topic: Advice on moving holdings to Vanguard Personal Advisor Services
Replies: 9
Views: 909

Re: Advice on moving holdings to Vanguard Personal Advisor Services

One would think that managing this kind of issue is exactly what PAS is for. The test would be whether or not they can come up with the right answer for how to move/hold those assets while enrolling in PAS. What is the current understanding of what PAS does with assets not held at Vanguard? The last...
by dbr
Tue Jul 21, 2015 8:25 am
Forum: Investing - Help with Personal Investments
Topic: How would you rebalance when your fixed income investments are not liquid?
Replies: 15
Views: 544

Re: How would you rebalance when your fixed income investments are not liquid?

Sidney is right. That is one of the reasons the logic behind counting income as a bond breaks down.

Having said that, the income situation may justify having all the liquid assets in equities, or it may not.
by dbr
Mon Jul 20, 2015 11:07 am
Forum: Investing - Theory, News & General
Topic: Annuities-when and why?
Replies: 43
Views: 4045

Re: Annuities-when and why?

Yep, that's a good reason to own a SPIA... I will probably own a SPIA, bonds, AND stocks. I will have to crunch the numbers but is it better to own bonds so you can rebalance into equities when they dip? I haven't found a single 30-year period in history where a combination of stocks and intermedia...
by dbr
Mon Jul 20, 2015 10:56 am
Forum: Investing - Theory, News & General
Topic: The "No Bonds" portfolio
Replies: 80
Views: 11022

Re: The "No Bonds" portfolio

I would have to do some backtesting but I am curious which strategy would be better: Holding 100% equities and only withdrawing the dividends each year, or holding 60% equity and 40% bonds and withdrawing a fixed amount each year. Your question is not defined because you haven't specified what the ...
by dbr
Mon Jul 20, 2015 10:44 am
Forum: Personal Consumer Issues
Topic: Do you hate your vehicle infotainment system?
Replies: 73
Views: 5896

Re: Do you hate your vehicle infotainment system?

I try not to do this but I will blanket statement all Toyota, Lexus and Scion Navigation systems are garbage. The simple reason is that they do not allow search while the car is in motion. I'm sure some lawyer insisted on this provision but I have this thing called a passenger that could do the sea...
by dbr
Mon Jul 20, 2015 10:41 am
Forum: Personal Consumer Issues
Topic: Do you hate your vehicle infotainment system?
Replies: 73
Views: 5896

Re: Do you hate your vehicle infotainment system?

I am convinced that all in all the degree of interaction with the car that is becoming standard is going to prove to be a very dangerous mechanism for driver distraction at a horrendous cost in lives, injury, and property. While some of the features will have positive benefits others will have more ...
by dbr
Mon Jul 20, 2015 10:12 am
Forum: Investing - Theory, News & General
Topic: The Danger of higher-yielding bond funds
Replies: 62
Views: 4561

Re: The Danger of higher-yielding bond funds

In the 37 years since inception of the Vanguard High Yield Corporate Bond Fund it has had a compound average growth rate of 8.63%. I would say that the investors in that fund have been well rewarded over the long haul for taking on the risk of high yield bonds, do you not agree? I think the idea is...
by dbr
Mon Jul 20, 2015 10:07 am
Forum: Investing - Help with Personal Investments
Topic: Auto Div Reinvesting. Really so bad?
Replies: 33
Views: 3399

Re: Auto Div Reinvesting. Really so bad?

I know the prescribed method for dealing with divs in a taxable account is to sweep them into a MM for later redeployment. However, I've always automatically reinvested them. My reasoning has been: That isn't the prescribed method. The prescribed method is that everyone makes their own choice based...
by dbr
Mon Jul 20, 2015 9:57 am
Forum: Investing - Theory, News & General
Topic: The Danger of higher-yielding bond funds
Replies: 62
Views: 4561

Re: The Danger of higher-yielding bond funds

I suspect many investors in these funds and in PR municipal bonds had no idea of the underlying risks. They chased yield, and yield caught them. I suspect many stock investors had no idea of the underlying risks of the stocks that they purchased and lost money as a result. Does that mean I should a...
by dbr
Mon Jul 20, 2015 9:53 am
Forum: Investing - Theory, News & General
Topic: The "No Bonds" portfolio
Replies: 80
Views: 11022

Re: The "No Bonds" portfolio

The thread is entitled "The 'No Bonds' Portfolio", so there might be no bonds from which to rebalance into stocks. The yield of bonds might be so low as to be unable to provide the desired cashflow given the limits of assets invested. Or, there might be a small bond stake that provides di...
by dbr
Mon Jul 20, 2015 9:49 am
Forum: Investing - Theory, News & General
Topic: The Danger of higher-yielding bond funds
Replies: 62
Views: 4561

Re: The Danger of higher-yielding bond funds

The message would have been more appropriate if it were to point out the example of that particular fund turning out badly rather than generalizing to a whole class of funds. There can be irresponsibly run funds of any nature including some recent debacles in the money market by a reputable fund com...
by dbr
Mon Jul 20, 2015 9:12 am
Forum: Personal Consumer Issues
Topic: Do you hate your vehicle infotainment system?
Replies: 73
Views: 5896

Re: Do you hate your vehicle infotainment system?

Mine works fine in the Subaru Outback 2015. That is because I use nothing except listening to one FM station and playing CDs. My son needed about 8 seconds to connect his Android phone by bluetooth and play music from his playlist. I wouldn't even consider trying to talk on a phone while driving the...
by dbr
Mon Jul 20, 2015 8:03 am
Forum: Investing - Theory, News & General
Topic: Annuities-when and why?
Replies: 43
Views: 4045

Re: Annuities-when and why?

It looks like you can get better yields on annuities than bonds, and indexed annuities than TIPS. Yes, it "looks like"... Insurance companies do a great job making sure it "looks like" you can get better yields.... But you don't... It's all a lie... Frankly I think it should be ...
by dbr
Sun Jul 19, 2015 9:25 pm
Forum: Investing - Theory, News & General
Topic: Question about a rant by nisiprius
Replies: 7
Views: 2153

Re: Question about a rant by nisiprius

I'm probably missing your point, but, assuming a 20% loss. with the dividend stocks I take my 4% ($4k) and leave $1k so I have $81k. No dividend-- I take my 4% ($3.2K) and have $76.8K. Obviously even the "no dividend" will have some dividend, but the example highlights the point in questi...
by dbr
Sun Jul 19, 2015 9:20 pm
Forum: Investing - Help with Personal Investments
Topic: Vanguard's new Personal Advisor Services
Replies: 56
Views: 8816

Re: Vanguard's new Personal Advisor Services

In terms of business model for VG it is an easy way to generate more revenue from an existing base of clients. So by providing some assistance they get a small bump in revenue for the same funds and the same clients. I am always thinking of ways that VG can lower my ER. This may factor in as a way ...
by dbr
Sun Jul 19, 2015 9:17 pm
Forum: Investing - Help with Personal Investments
Topic: 4 percent annuity fixed account as part of bond allocation?
Replies: 5
Views: 508

Re: 4 percent annuity fixed account as part of bond allocation?

Do you plan to annuitize this or cash it out somehow. Your future model for this would be whatever you turn it into at that time. You can't decide exactly on the present model because you don't know the plan. If you know you are going to annuitize, I would call it a future income stream and not a pr...
by dbr
Sun Jul 19, 2015 9:13 pm
Forum: Investing - Help with Personal Investments
Topic: How much cash - need help giving advice to mother
Replies: 11
Views: 1095

Re: How much cash - need help giving advice to mother

A whole bunch of things in this conversation make no sense at all. First of all because she is saving $50K a year she doesn't have any expenses to save two years of because what she spends is more than covered by her income. The $20K each on the kids is really nice and commendable, but as a financia...
by dbr
Sun Jul 19, 2015 9:47 am
Forum: Investing - Help with Personal Investments
Topic: Three-fund portfolio for retirees?
Replies: 10
Views: 1425

Re: Three-fund portfolio for retirees?

Trying to distinguish "withdrawing from principal" as a special kind of withdrawal distinct from simply withdrawing from a portfolio as a whole, whatever the mechanics may, be is a way to handcuff your portfolio design and investment selection that is simply unnecessary whatever the psycho...
by dbr
Sat Jul 18, 2015 1:09 pm
Forum: Investing - Help with Personal Investments
Topic: Thoughts on Vanguard High Dividend Yield as Core Holding
Replies: 12
Views: 1520

Re: Thoughts on Vanguard High Dividend Yield as Core Holding

Proceed with caution. Vanguard High Dividend Yield ETF (VYM) & Vanguard High Dividend Yield Index Inv (VHDYX) are both good members of Vanguard's Funds and ETFs. As far as "the core thing" this is from Morningstar: Suitability Vanguard High Dividend Yield ETF offers equity investors h...
by dbr
Sat Jul 18, 2015 11:53 am
Forum: Personal Finance (Not Investing)
Topic: Advisors
Replies: 12
Views: 1138

Re: Advisors

I have found CPAs to be reasonably helpful from time to time on tax matters, and would absolutely not make will, trust, and POA decisions without consulting an estate attorney. I have never met a financial advisor that was not either incompetent or not capable of avoiding conflict of interest. That ...
by dbr
Sat Jul 18, 2015 11:37 am
Forum: Personal Finance (Not Investing)
Topic: losing money on a house....how do Bogleheads deal with it emotionally?
Replies: 76
Views: 6000

Re: losing money on a house....how do Bogleheads deal with it emotionally?

Happy wife = happy life. Anyone else get annoyed by that statement? Sure you need a happy partner but it isn't sufficient on its own to make your life happy. Having a happy spouse in a location that makes you miserable and a job that leaves you unsatisfied is unlikely to result in a happy life. As ...
by dbr
Sat Jul 18, 2015 11:35 am
Forum: Personal Finance (Not Investing)
Topic: Medicare Gap Monthly Costs
Replies: 11
Views: 1162

Re: Medicare Gap Monthly Costs

If you are fairly certain that "G" and "N" are the plans you want (and you should be certain because neither FL or MN will allow you to switch without medical underwriting after the initial Open Enrollment period has passed) you should focus on the companies that offer "iss...
by dbr
Sat Jul 18, 2015 11:23 am
Forum: Personal Consumer Issues
Topic: Is Medicare required when one has adequate retiree health insurance?
Replies: 22
Views: 1582

Re: Is Medicare required when one has adequate retiree health insurance?

If so, how has it actually worked? Did you sign up and pay for Medicare B, for example? Thanks again. RM I can give you two instances. I had on offer such a plan from my former employer. The plan is secondary and REQUIRES that you sign up for Medicare A and B but not for D or for any Medigap or Adv...
by dbr
Sat Jul 18, 2015 11:02 am
Forum: Investing - Help with Personal Investments
Topic: Considering changing allocation between bonds and fixed income/guaranteed
Replies: 3
Views: 374

Re: Considering changing allocation between bonds and fixed income/guaranteed

I agree you are fiddling around at the margins, perhaps out of anxiety. Livesoft may be right that you can do this if it makes you feel better, but I would consider that fiddling with investments to feel better is the top of a slippery slope of making behavioral mistakes that could become bad ones i...
by dbr
Sat Jul 18, 2015 10:54 am
Forum: Investing - Help with Personal Investments
Topic: I think I did something dumb.
Replies: 20
Views: 4399

Re: I think I did something dumb.

Looking at the big picture, a loss of $1,600 is ~1% of your investment. Before investing in anything after you sell, ask yourself, "How much money am I comfortable losing?" If you aren't comfortable losing 5-10%, at a minimum, I'm not sure if you should be investing in any fund or index w...
by dbr
Sat Jul 18, 2015 10:26 am
Forum: Personal Finance (Not Investing)
Topic: losing money on a house....how do Bogleheads deal with it emotionally?
Replies: 76
Views: 6000

Re: losing money on a house....how do Bogleheads deal with it emotionally?

To answer the OP.

This is a learning experience about how to unify work, marriage, and life. From a financial point of view it is a lesson about the financial and non-financial risks of buying houses. Such lessons may be far more valuable than the price paid in this instance.
by dbr
Sat Jul 18, 2015 10:25 am
Forum: Personal Finance (Not Investing)
Topic: losing money on a house....how do Bogleheads deal with it emotionally?
Replies: 76
Views: 6000

Re: losing money on a house....how do Bogleheads deal with it emotionally?

The scenario doesn't sound like it is really about the house. Perhaps counseling? If 30k can buy happiness it is a good price, but it sounds like you expect to become VERY unhappy with city A. Good luck working this out. This sounds right, but I will answer the original question. Easy: a house isn'...
by dbr
Sat Jul 18, 2015 10:07 am
Forum: Personal Consumer Issues
Topic: Is Medicare required when one has adequate retiree health insurance?
Replies: 22
Views: 1582

Re: Is Medicare required when one has adequate retiree health insurance?

As mentioned above, I would wager this plan like almost all retiree insurance for Medicare qualified retirees is really supplemental insurance. It is highly unlikely this covers the Part B coverages and is primary in any sense. Getting an iron clad clear answer that this plan is more than that would...
by dbr
Sat Jul 18, 2015 9:55 am
Forum: Personal Finance (Not Investing)
Topic: Turning 65, need Medicare, but delaying Social Security
Replies: 20
Views: 1696

Re: Turning 65, need Medicare, but delaying Social Security

Thank you, all. This thread will be an incredible resource for me. It contains many things I absolutely did not know. I might remark that I am a minimal consumer of health care resources, so I have no idea how to play the system. My only regular medications are two cups of coffee in the morning, an...
by dbr
Sat Jul 18, 2015 9:38 am
Forum: Investing - Help with Personal Investments
Topic: Thoughts on Vanguard High Dividend Yield as Core Holding
Replies: 12
Views: 1520

Re: Thoughts on Vanguard High Dividend Yield as Core Holding

I would like to have some thoughts on using the Vanguard High Dividend Yield (VYM) ETF as a core holding for a US stock allocation. Pros? Cons? I don't know what you mean by a "core" holding. Some people would consider the total market by definition to be the core holding, and if they des...
by dbr
Fri Jul 17, 2015 10:05 am
Forum: Personal Finance (Not Investing)
Topic: File-and-suspend application
Replies: 10
Views: 545

Re: File-and-suspend application

I have also been called by a SS employee to verify that instructions given in the comments section were indeed what was intended. They were. I didn't have any additional issues and there were no disconnects about information in the conversation. The man I talked to was older and gave an impression o...
by dbr
Fri Jul 17, 2015 9:30 am
Forum: Personal Finance (Not Investing)
Topic: 60K Car Maintenance Service = $600. Is this Reasonable?
Replies: 48
Views: 3850

Re: 60K Car Maintenance Service = $600. Is this Reasonable?

Wasn't there just another thread where the conclusion was to read what is recommended in the manual and get an estimate for that?

More likely the real danger to accelerated costs is the shopping list of things they will find "need attention" after they do the proposed service.
by dbr
Fri Jul 17, 2015 9:27 am
Forum: Personal Finance (Not Investing)
Topic: After the Mortgage is Paid Off
Replies: 17
Views: 1526

Re: After the Mortgage is Paid Off

I have been following with interest the "Pulling equity out of home to invest?" thread, because my spouse and I are doing the opposite and paying off our mortgage. We are about two years from retirement with an annoyingly high interest rate compared to our credit rating and decided the ri...
by dbr
Fri Jul 17, 2015 9:17 am
Forum: Investing - Theory, News & General
Topic: Vanguard Managed Payout Fund
Replies: 19
Views: 1712

Re: Vanguard Managed Payout Fund

All valid points that I don't disagree with. However some people want a zero hands on experience. Having to figure out percentages and establishing an automatic withdrawal plan is not something that some people are comfortable with. I also like that the managed payout fund bases withdrawals on a 3 ...
by dbr
Fri Jul 17, 2015 8:03 am
Forum: Personal Finance (Not Investing)
Topic: Turning 65, need Medicare, but delaying Social Security
Replies: 20
Views: 1696

Re: Turning 65, need Medicare, but delaying Social Security

I still get a "bill" every month, but there is no payment due; it does say that they will deduct it from my account on the 20th. The government (or more directly, the tax payers) could save a bit of money by getting rid of the bill notices, IMHO. - Ron Right, they automatically shift over...
by dbr
Fri Jul 17, 2015 7:51 am
Forum: Investing - Theory, News & General
Topic: Vanguard Managed Payout Fund
Replies: 19
Views: 1712

Re: Vanguard Managed Payout Fund

How is that a mess? I get the impression a "rigid" dollar amount is exactly what the sort of investor interested in the service wants. The precise disadvantage of managed payout is that the payout is not a rigid fixed dollar amount. SS, pensions, and annuities pay out fixed dollar amounts ...
by dbr
Fri Jul 17, 2015 7:40 am
Forum: Personal Finance (Not Investing)
Topic: Turning 65, need Medicare, but delaying Social Security
Replies: 20
Views: 1696

Re: Turning 65, need Medicare, but delaying Social Security

Medicare A and B are provided by the government, with a premium to be paid monthly for Part B, which, as mentioned, can be paid by direct deduction from a checking account. These can be arranged by applying online starting three months before one's 65th birthday. One should not delay as there are co...
by dbr
Fri Jul 17, 2015 7:23 am
Forum: Investing - Theory, News & General
Topic: Vanguard Managed Payout Fund
Replies: 19
Views: 1712

Re: Vanguard Managed Payout Fund

I guess I'm an outlier here. I recommended the Managed Payout fund to someone totally not interested in investing but needing the income. The money flows into their bank account like clock work and they are happy. Doesn't Vanguard or any other broker offer the arrangement of disbursing any specifie...

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