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Re: Asset Allocation

I would recommend reading a couple of Larry Swedroe's books and find the discussion of assessing need, ability, and willingness to take risk. Those are the factors that are unique to every individual.
by dbr
Fri Oct 31, 2014 4:30 pm
 
Forum: Investing - Help with Personal Investments
Topic: Asset Allocation
Replies: 13
Views: 546

Re: Jack Bogle on why your retirement plan stinks

Right. Fees and fund expenses are two different things. One should see the fees deducted from the fund holdings by selling shares. I have one fund in my 401K with a NAV right around $10 and they take away just about exactly 1 share a month to get their $10 fee. Fund expenses are deducted from the NA...
by dbr
Fri Oct 31, 2014 4:27 pm
 
Forum: Investing - Theory, News & General
Topic: Jack Bogle on why your retirement plan stinks
Replies: 13
Views: 2177

Re: Betterment Portfolio Review - Need 3 Fund equivalent %

Let me clarify the experiment that I was thinking. I am not trying to replicate all the transactions of Betterment. I am trying to replicate what I would have done boglehead way against their method and see how my method 1099 would have been at end of year. 10k deposited on Aug 13 and invested in 3...
by dbr
Fri Oct 31, 2014 4:12 pm
 
Forum: Investing - Help with Personal Investments
Topic: Betterment Portfolio Review - Need 3 Fund equivalent %
Replies: 16
Views: 1073

Re: Fund Earnings Checkup - How to Calculate

I didn't answer this question: It is a little unclear what you want to know. This is important because you may tell me then what I'm doing is irrelevant to what I want to know. What I want to do at year end or quarterly, is: 1) compare my account performance to benchmarks. I don't want to do detail...
by dbr
Fri Oct 31, 2014 3:58 pm
 
Forum: Investing - Help with Personal Investments
Topic: Fund Earnings Checkup - How to Calculate
Replies: 9
Views: 307

Re: Betterment Portfolio Review - Need 3 Fund equivalent %

Updated: I presented the three fund portfolio to my friend and showed the morningstar X-Ray and the decreased ER.As part of our financial learning process, I got to see his 1099 from Betterment for last year. He started betterment account in early August but has multiple pages of transactional hist...
by dbr
Fri Oct 31, 2014 3:41 pm
 
Forum: Investing - Help with Personal Investments
Topic: Betterment Portfolio Review - Need 3 Fund equivalent %
Replies: 16
Views: 1073

Re: BND or a CD

This is a little off the topic but, I saw this footnote in a Vanguard research paper. http://www.vanguard.com/pdf/s130.pdf The footnote is cited to the last sentence in the executive summary and states: 1. During periods of severe equity market stress, cash has historically been the most consistent...
by dbr
Fri Oct 31, 2014 2:21 pm
 
Forum: Investing - Help with Personal Investments
Topic: BND or a CD
Replies: 47
Views: 2611

Re: fleeced by an adviser, is there a recourse?

This is a sad state of affairs. I disagree with those who say this is capitalism and do your due diligence; imagine if you had to check the chemical composition of every can of food you buy, or try to figure out the effects and efficacy of every medicine. This isn't the 19th century, nor is it Chin...
by dbr
Fri Oct 31, 2014 2:14 pm
 
Forum: Investing - Help with Personal Investments
Topic: fleeced by an adviser, is there a recourse?
Replies: 104
Views: 8147

Re: 1st time for money in taxable acccounts not retirement o

What you do is consider yourself to have $640K in retirement assets. If you want 40/60, then you can put $384K in bonds and $186K in stocks in your IRAs and the remaining $70K in stocks in your taxable account. Whatever funds you use for stocks in the IRAs can also be used in taxable. That has in mi...
by dbr
Fri Oct 31, 2014 2:10 pm
 
Forum: Investing - Help with Personal Investments
Topic: 1st time for money in taxable acccounts not retirement ones
Replies: 8
Views: 523

Re: Fund Earnings Checkup - How to Calculate

It is a little unclear what you want to know. If by "how your investments did this year" means what percent return you earned, then the first examples you quoted were fine. In the second example where there are contributions or withdrawals the number you got for gain (a more usual term tha...
by dbr
Fri Oct 31, 2014 1:06 pm
 
Forum: Investing - Help with Personal Investments
Topic: Fund Earnings Checkup - How to Calculate
Replies: 9
Views: 307

Re: Short term investing

We probably could suggest the money be placed in CDs, however.
by dbr
Fri Oct 31, 2014 12:36 pm
 
Forum: Investing - Help with Personal Investments
Topic: Short term investing
Replies: 5
Views: 509

Re: Strategy of 6M trusts meeting tonight. Few Q's

One perspective on this is that in the one trust I am familiar with which was placed with a bank client trust group the following was true: 1. The cost was 0.75% of assets. A trust of your size would have been less, perhaps 0.5%. All sales transactions were commission free. The cost include preparat...
by dbr
Fri Oct 31, 2014 12:21 pm
 
Forum: Investing - Help with Personal Investments
Topic: Strategy of 6M trusts meeting tonight. Few Q's
Replies: 22
Views: 1661

Re: Is $700,000 enough to retire? Opinions please .

He will also be taking a reduction in SS benefit by retiring before 66? The usual issue here is not about when to retire but about when to claim benefits. One can retire at one age and wait to take benefits at a later age. The OP will likely find that delaying benefits to age 70 is a good idea as r...
by dbr
Fri Oct 31, 2014 11:04 am
 
Forum: Investing - Help with Personal Investments
Topic: Is $700,000 enough to retire? Opinions please .
Replies: 49
Views: 5296

Re: Strategy of 6M trusts meeting tonight. Few Q's

Side question: Assuming that we create an acceptable portfolio using Vanguard funds/ETFs would that be entirely mobile and easy to "move" to another firm if necessary? If I negotiate a much reduced fee for accounting/planning only would it be reasonable to still have him hold the brokerag...
by dbr
Fri Oct 31, 2014 10:57 am
 
Forum: Investing - Help with Personal Investments
Topic: Strategy of 6M trusts meeting tonight. Few Q's
Replies: 22
Views: 1661

Re: Is $700,000 enough to retire? Opinions please .

For this to work at your level of spending I would suggest first thinking about delaying retirement (even by 1 additional year makes a difference). Second, I think you are a prime candidate to annuitize a large portion of your retirement money. If you annuitize (and assuming you don't opt for an in...
by dbr
Fri Oct 31, 2014 10:29 am
 
Forum: Investing - Help with Personal Investments
Topic: Is $700,000 enough to retire? Opinions please .
Replies: 49
Views: 5296

Re: Strategy of 6M trusts meeting tonight. Few Q's

To answer the other question - yes, this is ALSO my tax accountant for these trusts. He convinced me to bring it all under one roof (which was easy to convince me to do, as I was not happy with the former FA, and I have known this guy for years). He offered a "one stop shop" for all my ne...
by dbr
Fri Oct 31, 2014 10:25 am
 
Forum: Investing - Help with Personal Investments
Topic: Strategy of 6M trusts meeting tonight. Few Q's
Replies: 22
Views: 1661

Re: Strategy of 6M trusts meeting tonight. Few Q's

I should add that an investment manager who functions to hold the assets, place the money as directed, manage redemptions as needed, rebalance, provide accounting, and so on can be hired for much less than a financial adviser. Rick Ferri is an example. For that much in assets someone of that sort co...
by dbr
Fri Oct 31, 2014 10:14 am
 
Forum: Investing - Help with Personal Investments
Topic: Strategy of 6M trusts meeting tonight. Few Q's
Replies: 22
Views: 1661

Re: My college son's investment in Merril Lynch

I compared Vanguard LifeStrategy Growth Fund and Vanguard Target 2035. They look very similar but LifeStrategy seems to have more dividend distribution if I read it correctly. So I might choose it. Dividend distribution is not a reason to choose a fund. The essence of all these fund choices is the ...
by dbr
Fri Oct 31, 2014 10:11 am
 
Forum: Investing - Help with Personal Investments
Topic: My college son's investment in Merril Lynch
Replies: 17
Views: 1568

Re: Strategy of 6M trusts meeting tonight. Few Q's

Why are you using an FA that you have to argue with about what you want to do? If you are paying someone for advice you need to believe that the advice is valid and worth what you are paying for it. Anything else does not make sense. It is possible that you could benefit from advice from a tax accou...
by dbr
Fri Oct 31, 2014 9:56 am
 
Forum: Investing - Help with Personal Investments
Topic: Strategy of 6M trusts meeting tonight. Few Q's
Replies: 22
Views: 1661

Re: Jack Bogle on why your retirement plan stinks

It seems that when we talk about "excessive fees," we are for the most part discussing the high-cost ER's of many funds offered in 401(k) and other retirement plans. However, while I know this has been discussed many times on this board, I feel that additional sinister "hidden" ...
by dbr
Fri Oct 31, 2014 9:50 am
 
Forum: Investing - Theory, News & General
Topic: Jack Bogle on why your retirement plan stinks
Replies: 13
Views: 2177

Re: fleeced by an adviser, is there a recourse?

" CAUTION: FEES AND EXPENSES TOTALING 1% OR MORE WILL HAVE A DEVASTATING AFFECT ON YOUR FINANCIAL FUTURE". Consumers just won't understand anything else. And a lot just won't believe it because 1% just seems so tiny. Sure, when the US government takes 28% - 39.6% in income taxes, 3% expen...
by dbr
Fri Oct 31, 2014 9:44 am
 
Forum: Investing - Help with Personal Investments
Topic: fleeced by an adviser, is there a recourse?
Replies: 104
Views: 8147

Re: Is $700,000 enough to retire? Opinions please .

$700K is absolutely enough to retire, but the calculation should be reversed to determine how much one can spend and then make the decision to stay within that budget. As people have suggested the proposed level of spending in the OP is probably dicey. I don't think that problem can be estimated in ...
by dbr
Fri Oct 31, 2014 9:43 am
 
Forum: Investing - Help with Personal Investments
Topic: Is $700,000 enough to retire? Opinions please .
Replies: 49
Views: 5296

Re: fleeced by an adviser, is there a recourse?

This is an excellent suggestion. We have nutrition labels on every food package sold in the U.S. Surely, it's easier to have some forms with the adviser's fees. Taking this idea one step further, there should be comparison services of different advisers' fees just as we have sites that compare annu...
by dbr
Fri Oct 31, 2014 9:36 am
 
Forum: Investing - Help with Personal Investments
Topic: fleeced by an adviser, is there a recourse?
Replies: 104
Views: 8147

Re: Question for AXA Financial Rep

I tend to agree with the other responses. If you have to go it might be that the one question you could try is to demand an explanation of the total costs, fees, commissions or any other drains on your investment of all kinds that you will be subject too and that he supply all the necessary informat...
by dbr
Fri Oct 31, 2014 9:30 am
 
Forum: Investing - Theory, News & General
Topic: Question for AXA Financial Rep
Replies: 9
Views: 429

Re: newbie opening a UTMA account.. please advise which fund

The above advice is excellent. The step by step process for investing looks like this: 1. Define the objectives for the investment. In this case it could be trying for maximum growth knowing that this comes with uncertainty or it could be safe preservation of the asset. It could be growth in earlier...
by dbr
Fri Oct 31, 2014 9:17 am
 
Forum: Investing - Help with Personal Investments
Topic: newbie opening a UTMA account.. please advise which funds ??
Replies: 9
Views: 378

Re: Just how stringent is the fiduciary standard?

I was talking to a friend who uses a Registered Investment Advisor that has a fiduciary responsibility to act in my friend's best interest. This advisor also has an insurance license, and sold my friend and her husband a permanent life insurance policy despite the fact that they are both working pr...
by dbr
Fri Oct 31, 2014 12:33 am
 
Forum: Personal Finance (Not Investing)
Topic: Just how stringent is the fiduciary standard?
Replies: 3
Views: 444

Re: A Little Common Core Math problem

And the use of the existing answer to find the correct one is ok, but doesn't indicate the ability to solve the problem. It does indicate a resourcefulness to use the "testing" method on the answers. One might give a great deal of credit to figuring out how to test the answers. That is wh...
by dbr
Thu Oct 30, 2014 4:41 pm
 
Forum: Personal Consumer Issues
Topic: A Little Common Core Math problem
Replies: 97
Views: 2511

Re: A Little Common Core Math problem

Really there are a lot of ways to solve this problem that are mathematically correct. Solving simultaneous equations by elimination of variables and iteration over the set of answers are only two of the choices. The key thing in a case like this is the use of the problem to reinforce the subject ma...
by dbr
Thu Oct 30, 2014 4:29 pm
 
Forum: Personal Consumer Issues
Topic: A Little Common Core Math problem
Replies: 97
Views: 2511

Re: A Little Common Core Math problem

Good heavens, it can be expressed as two simultaneous equations, but they are so simple that one can the method of solving "by substitution" in one's head so quickly that one might as well go straight to the one-variable formulation. There isn't any right or wrong here. One of the interes...
by dbr
Thu Oct 30, 2014 4:19 pm
 
Forum: Personal Consumer Issues
Topic: A Little Common Core Math problem
Replies: 97
Views: 2511

Re: A Little Common Core Math problem

seems like a long-winded way to bash your YMCA teachers and 90% of the American population. Might have been a more concise way to do so? If that is meant for me, the long winded post was because someone wondered if I really meant the 90% number. As for bashing, I don't think any bashing is involved...
by dbr
Thu Oct 30, 2014 4:16 pm
 
Forum: Personal Consumer Issues
Topic: A Little Common Core Math problem
Replies: 97
Views: 2511

Re: Prudent Investment Portfolio for 58-year Old w/20M Net W

Sorry, I made a miss-statement. At 0% real interest rate TIPS could support a 3.3% withdrawal of real dollars with the portfolio exhausted at the end of thirty years.
by dbr
Thu Oct 30, 2014 3:56 pm
 
Forum: Investing - Help with Personal Investments
Topic: Prudent Investment Portfolio for 58-year Old w/20M Net Worth
Replies: 34
Views: 2930

Re: Early SS or Higher IRA Withdrawal??

Professor, No fight here just good debate :beer No cash under mattress EVER, Have mostly Target Fund 2020's (Vanguard, Fidelity, TSP). 750k and growing. 2 Pensions with COLA and not sure how to spend it all wisely? I am thinking Christian Orphanage in S.E. Asia could use it? No Insurance just Auto ...
by dbr
Thu Oct 30, 2014 3:42 pm
 
Forum: Personal Finance (Not Investing)
Topic: Early SS or Higher IRA Withdrawal??
Replies: 19
Views: 1506

Re: BND or a CD

There is nothing wrong with seeking a little more yield in safe CDs rather than in intermediate bonds. I am not sure there is a lot of advantage to be gained. It is dancing on the head of a pin. The advantage is mainly psychological - although this can be very important. With a CD, I know I that at...
by dbr
Thu Oct 30, 2014 3:38 pm
 
Forum: Investing - Help with Personal Investments
Topic: BND or a CD
Replies: 47
Views: 2611

Re: A Little Common Core Math problem

Your daughter is very resourceful. And her technique can easily be generalized to non-multiple choice situations. If she hadn't been given multiple choices, she could have just guessed a plausible number for the weight of the cat (or the dog), tried it to see if worked, and then intelligently modif...
by dbr
Thu Oct 30, 2014 3:31 pm
 
Forum: Personal Consumer Issues
Topic: A Little Common Core Math problem
Replies: 97
Views: 2511

Re: A Little Common Core Math problem

My guess is that 90% of the adult population would struggle with this question Do you really think 90% would struggle with this? It is certainly possible that I have a severly skewed expectation of what the average person should be able to figure out with math. I'm surprised to hear somebody thinki...
by dbr
Thu Oct 30, 2014 3:28 pm
 
Forum: Personal Consumer Issues
Topic: A Little Common Core Math problem
Replies: 97
Views: 2511

Re: fleeced by an adviser, is there a recourse?

Right now I use an advisor. I like him. He sends me a biannual reporting of fees. generally my fees are 1.2% This may be an honest and effective answer or it may be an example of disingenuous scamming. The issue is whether the 1.2% is the drain on your assets all-in or is in addition to "costs...
by dbr
Thu Oct 30, 2014 3:09 pm
 
Forum: Investing - Help with Personal Investments
Topic: fleeced by an adviser, is there a recourse?
Replies: 104
Views: 8147

Re: fleeced by an adviser, is there a recourse?

munemaker wrote:There is no recourse because that is how the system works. He is paid for making investments for you.


This is very true and brings us to the conclusion that no investor can afford to pay what an adviser needs to earn to provide the service. In my opinion this is the heart of the matter.
by dbr
Thu Oct 30, 2014 3:05 pm
 
Forum: Investing - Help with Personal Investments
Topic: fleeced by an adviser, is there a recourse?
Replies: 104
Views: 8147

Re: A Little Common Core Math problem

Solving this problem with equations requires algebra. Since algebra is not being taught at that grade level the students must rely on critical thinking skills. She did solve the problem – and did it without algebra. Not elegant but sufficient. Good for her. Re livesoft: The answer was self evident ...
by dbr
Thu Oct 30, 2014 3:00 pm
 
Forum: Personal Consumer Issues
Topic: A Little Common Core Math problem
Replies: 97
Views: 2511

Re: BND or a CD

An investor with a large portfolio, a million or so perhaps, who has a consistent simple asset allocation using a bond fund or two, might find messing around with a flock of CDs to not be worth the trouble or even of any advantage at no trouble. That is especially true if the assets are in a 401K bu...
by dbr
Thu Oct 30, 2014 9:09 am
 
Forum: Investing - Help with Personal Investments
Topic: BND or a CD
Replies: 47
Views: 2611

Re: If I am a LT investor, should I forgo a bond allocation?

I have no problem with any particular investor arriving at whatever asset allocation that investor chooses, even be it 100% stocks.

I am less confident that there is always a full understanding of the consequences of any particular choice.
by dbr
Thu Oct 30, 2014 9:01 am
 
Forum: Investing - Theory, News & General
Topic: If I am a LT investor, should I forgo a bond allocation?
Replies: 28
Views: 2132

Re: Onetime Step up in Basis for inherited stocks

You need to have a trust lawyer or tax lawyer look at the trust documents in order to understand exactly what the situation is. The lawyer who drafted the trust might be able to set you straight. Death or replacement of a trustee would have no effect on the tax status of the investments, in and of i...
by dbr
Thu Oct 30, 2014 8:59 am
 
Forum: Personal Finance (Not Investing)
Topic: Onetime Step up in Basis for inherited stocks
Replies: 3
Views: 271

Re: The safest 4 door sedan out there

I am not sure "stop on a dime considering their weight" is a known effect. Because Kinetic Energy is proportional to the square of the impact velocity, I've always believed that stopping ability has an outsized impact on vehicle safety. It is one of the reasons (I believe) active forward ...
by dbr
Thu Oct 30, 2014 8:45 am
 
Forum: Personal Consumer Issues
Topic: The safest 4 door sedan out there
Replies: 70
Views: 3375

Re: The safest 4 door sedan out there

Like jdb, I've liked Mercedes (I owned a 300E, back when the number preceded the letter). I think our Range Rovers have been safe cars. They're big and heavy, and can stop on a dime considering their weight (and it costs many dimes to replace the massive brake pads). Knock wood, they've been reliab...
by dbr
Thu Oct 30, 2014 12:04 am
 
Forum: Personal Consumer Issues
Topic: The safest 4 door sedan out there
Replies: 70
Views: 3375

Re: Prudent Investment Portfolio for 58-year Old w/20M Net W

OK, Well,even with only $13 million, if he needs to produce $375K of pretax income, that's only a 2.9% return, which can be accomplished a number of ways. And, if he needs 375K after taxes, and assuming an average effective tax rate of 35%, he'll need to make 4.4% overall. That's a little more chal...
by dbr
Wed Oct 29, 2014 11:57 pm
 
Forum: Investing - Help with Personal Investments
Topic: Prudent Investment Portfolio for 58-year Old w/20M Net Worth
Replies: 34
Views: 2930

Re: The safest 4 door sedan out there

Trying to single out a single make, model, and variant that is the safest 4 door sedan out there is not possible. There is possibly a list of a number of cars that are good bets and a list of other cars that might fall short to some degree.
by dbr
Wed Oct 29, 2014 11:41 pm
 
Forum: Personal Consumer Issues
Topic: The safest 4 door sedan out there
Replies: 70
Views: 3375

Re: Best approaches to accumulating in a down market

So here's a topic that has been bugging me lately. best approaches to adding/accumulating in a down market. for example, should you go overweight in e.g. small caps, especially when the market gives you such a nice pullback, or should you add across the board using specific weights that favor favor...
by dbr
Wed Oct 29, 2014 11:39 pm
 
Forum: Investing - Help with Personal Investments
Topic: Best approaches to accumulating in a down market
Replies: 23
Views: 1849

Re: If I am a LT investor, should I forgo a bond allocation?

I decided to have 15% cash, no bond. That is just my choice. I will buy bond when the 10 year yield is at least 3.5%. In the context of this discussion about stock risk and diluting it with bonds, cash is bonds. You might not even be losing a lot of return if by cash you mean CDs paying a reasonabl...
by dbr
Wed Oct 29, 2014 11:31 pm
 
Forum: Investing - Theory, News & General
Topic: If I am a LT investor, should I forgo a bond allocation?
Replies: 28
Views: 2132

Re: The safest 4 door sedan out there

Well this is a concern: InformedForLife.org Safety Assessment NOT RECOMMENDED: [NHTSA frontal impact rating in bottom 72%] My mistake. I was looking at the ratings of the 2-door, not 4-door Accord. In a case of something like this one has to ask if that "recommended/not recommended" is no...
by dbr
Wed Oct 29, 2014 5:39 pm
 
Forum: Personal Consumer Issues
Topic: The safest 4 door sedan out there
Replies: 70
Views: 3375

Re: If I am a LT investor, should I forgo a bond allocation?

If I am a long term investor (ie, 30+yrs time horizon), why should I even have a bond allocation (either taxable or tax exempt)? The bond allocation would reduce my return over that time period. I can understand if I had a shorter time horizon (ie, <10yrs) I should have a bond allocation. But as a ...
by dbr
Wed Oct 29, 2014 5:36 pm
 
Forum: Investing - Theory, News & General
Topic: If I am a LT investor, should I forgo a bond allocation?
Replies: 28
Views: 2132

Re: Early SS or Higher IRA Withdrawal??

In any case, as mathwizard points out, the comparison statistic is the level of safe total income that can be achieved. It is a mistake to look at breakeven because the plan is a mix of spending down assets and carrying a longevity annuity that is inflation indexed. As pointed out the plan involves ...
by dbr
Wed Oct 29, 2014 5:22 pm
 
Forum: Personal Finance (Not Investing)
Topic: Early SS or Higher IRA Withdrawal??
Replies: 19
Views: 1506

Re: The safest 4 door sedan out there

The Driver Weight-Effect Fatality Rate is an interesting statistic. I have been involved in studies of exactly that issue. The result is an almost 1/weight dependence of driver fatality rate on vehicle weight with a knee around 3000 lbs. Note this implies severe issues when driving very small cars ...
by dbr
Wed Oct 29, 2014 5:11 pm
 
Forum: Personal Consumer Issues
Topic: The safest 4 door sedan out there
Replies: 70
Views: 3375
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