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Re: Need urgent help for 85 y.o. parents just moved to Vangu

They have a high income, with pensions, annuities, and social security taking them to $95k a year, but they're just spending too much, so they've also been spending the $7k IRA RMD and an additional $20k/year from their taxable retirement account. I'm working with mom to get a budget going, but I n...
by dbr
Fri Sep 19, 2014 5:16 pm
 
Forum: Investing - Help with Personal Investments
Topic: Need urgent help for 85 y.o. parents just moved to Vanguard
Replies: 43
Views: 2180

Re: Immediate payable annuity is a bad investment?

I am just curious, when you sign up for an SPIA, are there any fees associated with it? There are no fees in the sense you probably mean. The contract is for you to give up a specific sum of money for them to pay you a specific amount every month for the rest of your life. Out of the money you give...
by dbr
Fri Sep 19, 2014 10:12 am
 
Forum: Investing - Theory, News & General
Topic: Immediate payable annuity is a bad investment?
Replies: 44
Views: 2091

Re: 401K ; moving into a no loss / no gain

What is a "no loss/no gain" position? Can you be more specific about what is planned?
by dbr
Fri Sep 19, 2014 10:05 am
 
Forum: Investing - Help with Personal Investments
Topic: 401K ; moving into a no loss / no gain
Replies: 5
Views: 399

Re: Employer stock options

Just a minor quibble but ESOP usually means employee stock OWNERSHIP plan, even if they don't actually call it that. The reason for the quibble is that there is a big difference between buying company stock at a discount and getting grants of stock OPTIONS, which are an entirely different animal wit...
by dbr
Fri Sep 19, 2014 10:03 am
 
Forum: Investing - Help with Personal Investments
Topic: Employer stock options
Replies: 7
Views: 469

Re: The Three Fund Portfolio

I may have missed this in the 18 pages of this great thread, but where do t-bills fit into the 3-fund portfolio? Is it covered in TBM treasuries? I remember reading over and over in Bogle on Mutual Funds that they are an essential asset class. Have you seen the WIKI http://www.bogleheads.org/wiki/T...
by dbr
Tue Sep 16, 2014 10:47 am
 
Forum: Investing - Theory, News & General
Topic: The Three Fund Portfolio
Replies: 893
Views: 351342

Re: Investing in Startup My Father Is Joining as Founder

Since the OP said up top that " He asked if we wanted to invest too, but the paperwork is going to be drawn up such that the investment would be in his name so as not to hold up closing series A.," it would appear that this is either a gift or a loan no matter what.
by dbr
Mon Sep 15, 2014 2:42 pm
 
Forum: Personal Finance (Not Investing)
Topic: Investing in Startup My Father Is Joining as Founder
Replies: 16
Views: 1691

Re: Investing in Startup My Father Is Joining as Founder

What taxes. The investment is in his name, so you don't even exist as far as this operation is concerned. I would say if you want to get technical that you have gifted him $10K (not reportable as a gift) and someday, maybe, somehow, he might gift you something back. If you want to get technical, tec...
by dbr
Mon Sep 15, 2014 10:03 am
 
Forum: Personal Finance (Not Investing)
Topic: Investing in Startup My Father Is Joining as Founder
Replies: 16
Views: 1691

Re: Best Time Of Year To Visit Mediterranean

I vote for autumn, but investigate availability of transportation and facilities first. For example, ferries to the Greek islands are fewer or absent late in the year. We were at one town in mainland Greece at the end of September and they got their first rain of the season. The comment from the sta...
by dbr
Sun Sep 14, 2014 9:22 pm
 
Forum: Personal Consumer Issues
Topic: Best Time Of Year To Visit Mediterranean
Replies: 28
Views: 1386

Re: Am I in over my head?

Swampy wrote:Just because it's free, doesn't mean it's not good.




And just because you pay for it does not mean it is good.

One of the ironies around investing is the upside down character of this exchange. As it is said, you get what you don't pay for.
by dbr
Sun Sep 14, 2014 5:38 pm
 
Forum: Investing - Help with Personal Investments
Topic: Am I in over my head?
Replies: 51
Views: 4498

Re: How to get a child a different teacher after a bad start

Is there a school counselor? If so, I would request that the school counselor meet with the child to see if the counselor can make suggestions on how to make the child's classroom experience more positive. If there is no good school counselor, it may be worthwhile paying for a few sessions with a p...
by dbr
Sun Sep 14, 2014 2:21 pm
 
Forum: Personal Consumer Issues
Topic: How to get a child a different teacher after a bad start?
Replies: 30
Views: 2499

Re: How to get a child a different teacher after a bad start

I think sitting in on class is a good idea also. Maybe a better idea for the parents than for the grandparent to do this. Accompanying a child to class is a great idea, especially when the child is uncomfortable about something. Doing this after escalating to a confrontation with the principal is s...
by dbr
Sun Sep 14, 2014 2:17 pm
 
Forum: Personal Consumer Issues
Topic: How to get a child a different teacher after a bad start?
Replies: 30
Views: 2499

Re: How to get a child a different teacher after a bad start

You can always address a complaint to the superintendent of schools, either by writing a letter or requesting an appointment in person. If you do that, the contact needs to come from the parents and not from you. A request to change schools may or may not be practical or allowed in your district. Do...
by dbr
Sun Sep 14, 2014 1:30 pm
 
Forum: Personal Consumer Issues
Topic: How to get a child a different teacher after a bad start?
Replies: 30
Views: 2499

Re: Why do so many think their home is a foolproof investmen

Another question would be: why are bogleheads so negative on real estate as a group? I don't think Bogleheads are negative on real estate. This forum really is a discussion group for stock and bond investing and related financial planning. This is a result of being inspired by and oriented to the V...
by dbr
Sun Sep 14, 2014 1:00 pm
 
Forum: Investing - Theory, News & General
Topic: Why do so many think their home is a foolproof investment?
Replies: 125
Views: 6323

Re: Why do so many think their home is a foolproof investmen

Again, a (rental) house may be an investment, a home is not. You do not consider your car as an investment. Your meals are not an investment. I don't know. I know someone who had a particularly desirable out of production model of an elite make of car who had the car stolen and had to pay capital g...
by dbr
Sat Sep 13, 2014 12:06 pm
 
Forum: Investing - Theory, News & General
Topic: Why do so many think their home is a foolproof investment?
Replies: 125
Views: 6323

Re: Is there a "catch" in this Xfinity offer ?

You really shouldn't have a comcast.net or att.net email address for this very reason. Get out of the stone age and get a gmail account. You can have lots of email addresses including the comcast and the gmail as well. The obvious disadvantage is that it is a come-on for a higher price after the ye...
by dbr
Fri Sep 12, 2014 10:28 am
 
Forum: Personal Consumer Issues
Topic: Is there a "catch" in this Xfinity offer ?
Replies: 23
Views: 1595

Re: Kindle

If you go to Amazon Kindle Store and sort on price low to high it lists all the books for which the price is $0.00 first.
by dbr
Fri Sep 12, 2014 10:24 am
 
Forum: Personal Finance (Not Investing)
Topic: Kindle
Replies: 15
Views: 1351

Re: Individual Stocks

The few individual stocks I have are not speculative, they are large dividend payers. One of the earliest fundamentals about risk is the concept of diversifiable risk and eliminating that risk by holding lots of different stocks. This has nothing to do with speculation or dividends. If you are aski...
by dbr
Fri Sep 12, 2014 10:13 am
 
Forum: Investing - Theory, News & General
Topic: Individual Stocks
Replies: 30
Views: 2022

Re: What's your take on this article about annuities vs 10/9

I put that 6.5% initial withdrawal rate into FireCalc with 10% stocks, 90% 5 year Treasuries, set the inflation* rate to zero and got a failure rate for 30 years of 76% failed. Maybe about 15% of the outcomes ended up with $1mil left. The 20 year failure rate was only 8%, and the 40 year failure rat...
by dbr
Fri Sep 12, 2014 9:58 am
 
Forum: Investing - Theory, News & General
Topic: What's your take on this article about annuities vs 10/90?
Replies: 9
Views: 913

Re: Options vesting period coming to close, need advice

1) Exercise and sell; my understanding is that I'd be taxed at the normal income rate for this and be responsible for short-term capital gains (this is what I'm leaning towards at the moment) In this case the short term gain is almost always nothing more than the loss involved in paying the commiss...
by dbr
Fri Sep 12, 2014 9:46 am
 
Forum: Investing - Help with Personal Investments
Topic: Options vesting period coming to close, need advice
Replies: 8
Views: 506

Re: Quit/retire - should I do this?

Has anyone ever asked to get laid off successfully? (not talking during a time of announced layoffs) Would be nice to collect unemployment and maybe get some kind of package. (was hoping for this during the reorgs but no luck) I’ve been a long time, loyal employee. At Megacorp I failed for many yea...
by dbr
Thu Sep 11, 2014 3:15 pm
 
Forum: Personal Finance (Not Investing)
Topic: Quit/retire - should I do this?
Replies: 41
Views: 3767

Re: What risk-return really means

Only to wipe up the spilled coffee.
by dbr
Thu Sep 11, 2014 10:45 am
 
Forum: Investing - Theory, News & General
Topic: What risk-return really means
Replies: 41
Views: 2329

Re: What risk-return really means

The graph has no units or precisely specified mathematical function. It is an info-graphic, meant to convey a line of thought to people who don't understand the terms or concepts. The only point it makes is this: if you take on more risk in search of higher returns, the range of likely returns wide...
by dbr
Thu Sep 11, 2014 10:33 am
 
Forum: Investing - Theory, News & General
Topic: What risk-return really means
Replies: 41
Views: 2329

Re: What risk-return really means

Does the distribution of risk around the mean (the vertically-drawn bell curve on the graphic) remain the same even if you diversify your risk assets? That is, if you go out on the x-axis to the riskier assets, does the vertically drawn bell curve distribution apply only for highly correlated risky...
by dbr
Wed Sep 10, 2014 12:57 pm
 
Forum: Investing - Theory, News & General
Topic: What risk-return really means
Replies: 41
Views: 2329

Re: Medicare Out of Pocket worry (unnecessarily?)

This question highlights the problem with mixing pre-paid medical care (or any thing in a "prepaid" program) with actual insurance. The question is legitimate, and its only irrelevant for those who will be wards of the state anyway. People who've worked to save the way the people on this ...
by dbr
Wed Sep 10, 2014 9:01 am
 
Forum: Personal Finance (Not Investing)
Topic: Medicare Out of Pocket worry (unnecessarily?)
Replies: 16
Views: 939

Re: AT&T Stable Value Fund

The only question I have asked and have no data to answer is whether or not it is wise to put all or a large fraction of one's assets in a single fund operated only for a single employer involving only the employees of that company. There would be risks arising from that idiosyncratic situation that...
by dbr
Wed Sep 10, 2014 8:59 am
 
Forum: Investing - Help with Personal Investments
Topic: AT&T Stable Value Fund
Replies: 7
Views: 809

Re: What pct of stocks is needed to offer decent inflation p

Does anyone have any thoughts/info on (intermediate term in particular) muni bond's long run ability to keep pace with inflation compared to other kinds of bonds? If you think Rick Ferri's 30 year asset forecast has some validity then the quote there for 10 year A rated muni's is expected real retu...
by dbr
Tue Sep 09, 2014 1:21 pm
 
Forum: Investing - Theory, News & General
Topic: What pct of stocks is needed to offer decent inflation prote
Replies: 32
Views: 2016

Re: What pct of stocks is needed to offer decent inflation p

1970's (end of 1979 over end of 1969): CPI-U up 98%; SP500 value up only 57% 1980's: CPI-U up 71%; SP500 value up a whopping 354% 1990's: CPI-U up 34%; SP500 value up a huge 480% 2000's (end of 2009 vs. end of 1999): CPI-U up 29%; SP500 value down 13% Obviously, these results are not meant to proje...
by dbr
Tue Sep 09, 2014 10:16 am
 
Forum: Investing - Theory, News & General
Topic: What pct of stocks is needed to offer decent inflation prote
Replies: 32
Views: 2016

Re: Receiving Inheritance Distribution, Move to Avoid Tax?

My wife and I have both received inheritances in the past. In both cases, all assets (properties, stocks, etc.) were liquidated and all taxes were handled by the deceased estate attorney before any proceeds were disbursed. We didn't have to pay any taxes, as they were taken care of before disbursem...
by dbr
Tue Sep 09, 2014 9:51 am
 
Forum: Personal Finance (Not Investing)
Topic: Receiving Inheritance Distribution, Move to Avoid Tax?
Replies: 17
Views: 1014

Re: Bond Funds and Interest Rates Question

Basic question: Is it ok for an investor to hold short term bonds for a 1-3 year time horizon goal now that the drawdown of QE is a real possibility? Is my principal at risk? Well, it is always "ok" to hold short term bonds for that length of time, more or less. Also, bonds fluctuate in v...
by dbr
Tue Sep 09, 2014 9:42 am
 
Forum: Personal Finance (Not Investing)
Topic: Bond Funds and Interest Rates Question
Replies: 17
Views: 1261

Re: Receiving Inheritance Distribution, Move to Avoid Tax?

The baseline for receipt of an inheritance is no tax at all, but there are so many different configurations that, as others have said, you need to consult a good tax accountant who can get all the necessary data about the situation. If the trustee is unreliable then this is even more so. Jumping to ...
by dbr
Tue Sep 09, 2014 9:35 am
 
Forum: Personal Finance (Not Investing)
Topic: Receiving Inheritance Distribution, Move to Avoid Tax?
Replies: 17
Views: 1014

Re: Potentially Silly Question

You should consider all your investments together as one portfolio. But, various pieces can be located in different accounts. In some cases two accounts will have holdings in the same fund, total stock for example, and some other fund may appear in only one account. The two steps are asset allocatio...
by dbr
Tue Sep 09, 2014 9:27 am
 
Forum: Investing - Help with Personal Investments
Topic: Potentially Silly Question [basic portfolio advice]
Replies: 6
Views: 402

Re: What pct of stocks is needed to offer decent inflation p

Wow.....thanks for all of the thoughtful comments,suggestions and questions.I apologize for not being more precise,but was not expecting the responses to be at the level they are.I have read a lot of articles and posts about inflation being a huge problem that many underestimate and I am trying to ...
by dbr
Mon Sep 08, 2014 11:19 pm
 
Forum: Investing - Theory, News & General
Topic: What pct of stocks is needed to offer decent inflation prote
Replies: 32
Views: 2016

Re: Bond Allocation

If you want TIPS and the issue is that the duration is too high, then move some of VIPSX/VAIPX to the Vanguard short term TIPS funds. There are also TIPS ETFs in short, intermediate, and long durations.
by dbr
Mon Sep 08, 2014 2:26 pm
 
Forum: Investing - Help with Personal Investments
Topic: Bond Allocation
Replies: 10
Views: 1650

Re: Medicare Plan D

If you already know that you have significant medication needs you should check the pricing and coverage in specific plans for those particular medications. Most plans have an online capability to enter your medication plan.
by dbr
Mon Sep 08, 2014 1:07 pm
 
Forum: Personal Finance (Not Investing)
Topic: Medicare Plan D
Replies: 5
Views: 485

Re: Should you care about risk-adjusted returns?

I often see the mantra in various posts that investors should select portfolio assets and allocations based on comparing the "risk-adjusted" returns, but it's the wrong advice, IMO. I think you are reading too much into this. When that advice is rightly offered it is just in the context o...
by dbr
Mon Sep 08, 2014 12:28 pm
 
Forum: Investing - Theory, News & General
Topic: Should you care about risk-adjusted returns?
Replies: 13
Views: 798

Re: What pct of stocks is needed to offer decent inflation p

PS Buying a 30 year TIPS today meets the OP's condition because there would be 100% inflation protection and 0.9% growth. Quibbles involve how to reinvest the 0.9% and what accounting for taxes the OP intends to take. Investment cost is zero. Of course, obviously, this question does not mean what it...
by dbr
Mon Sep 08, 2014 10:50 am
 
Forum: Investing - Theory, News & General
Topic: What pct of stocks is needed to offer decent inflation prote
Replies: 32
Views: 2016

Re: What pct of stocks is needed to offer decent inflation p

OP, Good question. Lets define "Real real" return = nominal return - inflation - all taxes - expenses. Lets further assume that we are talking about a 100% taxable portfolio. Your question can be rephrased as "What asset allocation will (or has historically) return a 0% real real ret...
by dbr
Mon Sep 08, 2014 10:38 am
 
Forum: Investing - Theory, News & General
Topic: What pct of stocks is needed to offer decent inflation prote
Replies: 32
Views: 2016

Re: Employer finding out you have a financial cushion?

I do wonder what one of our executives thought when the guy he moved ahead of everyone else into a nice promotion and leadership position retired a year later at age 50 with $3 mil in the bank, leaving the department in the lurch. With all due respect the guy that retired was as surprised as anyone...
by dbr
Mon Sep 08, 2014 10:29 am
 
Forum: Personal Finance (Not Investing)
Topic: Employer finding out you have a financial cushion?
Replies: 62
Views: 6116

Re: Employer finding out you have a financial cushion?

I do wonder what one of our executives thought when the guy he moved ahead of everyone else into a nice promotion and leadership position retired a year later at age 50 with $3 mil in the bank, leaving the department in the lurch. With all due respect the guy that retired was as surprised as anyone ...
by dbr
Mon Sep 08, 2014 9:57 am
 
Forum: Personal Finance (Not Investing)
Topic: Employer finding out you have a financial cushion?
Replies: 62
Views: 6116

Re: What pct of stocks is needed to offer decent inflation p

hoops777 wrote:I have read a thousand posts about needing stocks to help to keep up with inflation.......


You don't need stocks to keep up with inflation and holding stocks does not guarantee that you will keep up with inflation over any particular period of time.
by dbr
Mon Sep 08, 2014 9:17 am
 
Forum: Investing - Theory, News & General
Topic: What pct of stocks is needed to offer decent inflation prote
Replies: 32
Views: 2016

Re: What pct of stocks is needed to offer decent inflation p

You have provided no definition of what you mean by decent inflation protection. You could look at Rick Ferri's 30 year forecast and check the expected real returns of various asset classes and observe that none of the items listed have a negative expected real return. Based on that there are portfo...
by dbr
Mon Sep 08, 2014 9:13 am
 
Forum: Investing - Theory, News & General
Topic: What pct of stocks is needed to offer decent inflation prote
Replies: 32
Views: 2016

Re: Let me get this straight about SCV & factor diversificat

Browser Factor are LONG-SHORT portfolios, not long only, thus your idea about TSM isn't correct Larry For more understanding of this comment reading the top of page 6 in this paper might be helpful (pkcrafter via Kevin M): http://www.msci.com/resources/pdfs/Foundations_of_Factor_Investing.pdf In fa...
by dbr
Sun Sep 07, 2014 1:08 pm
 
Forum: Investing - Theory, News & General
Topic: Let me get this straight about SCV & factor diversification
Replies: 153
Views: 8687

Re: Vanguard Lost $50k

Mistakes happen frequently and should be expected, but any magnitude of mistake deserves more attention from VG than this has has received. The real problem isn't the mistake, it's that the OP has been kept in the dark about the steps - if any - that are being taken to correct it. That is exactly r...
by dbr
Sun Sep 07, 2014 12:02 pm
 
Forum: Personal Consumer Issues
Topic: Vanguard Lost $50k
Replies: 103
Views: 10714

Re: Reinvest dividends and capital gains?

In reality the only problem is to calculate the effect of washing a very small number of shares purchased by dividend reinvestment in the 401K. Did you mean IRA here because 401k and similar plans are not mentioned in the detailed wash sale rules in the IRS publications. Yes, that was sloppy. There...
by dbr
Sun Sep 07, 2014 10:07 am
 
Forum: Investing - Help with Personal Investments
Topic: Reinvest dividends and capital gains?
Replies: 44
Views: 3794

Re: Poll: Cash Holdings

John3754 wrote:
sperry8 wrote:I wonder - of the people holding 4% or less - is that because you are all in on purpose or broke (simply don't have any cash to hold)?


Fully invested on purpose.


Also fully invested on purpose, and I don't have an emergency fund. Note I am retired and have annuity income.
by dbr
Sun Sep 07, 2014 10:04 am
 
Forum: Investing - Theory, News & General
Topic: Poll: Cash Holdings
Replies: 65
Views: 3617

Re: Help: do I need to transfer out of this SVF ?

Well, the the suggestion is meant that you talk to that person, if that is the case. Note that WHL is not the OP so the comment would not be specifically applicable to the situation at hand but apparently meant as a more general "that might not help" addition. Correction noted, sorry for ...
by dbr
Sat Sep 06, 2014 12:57 pm
 
Forum: Investing - Help with Personal Investments
Topic: Help: do I need to transfer out of this SVF ?
Replies: 9
Views: 612

Re: Principal Protection

But I can't resist adding that this seems like an odd move. What makes you have absolutely zero tolerance for risk? A little risk will bring some gain, and who can't use some gains? What would be so horrible if your portfolio fluctuated a little bit? That, of course, is the crux of the issue. It is...
by dbr
Sat Sep 06, 2014 12:15 pm
 
Forum: Investing - Help with Personal Investments
Topic: Principal Protection
Replies: 44
Views: 2027

Re: Cash to draw on - Safe Withdrawal Rate

If Otar is the Bible, then this is the Reader's Digest version:

http://www.bogleheads.org/wiki/SWR
by dbr
Sat Sep 06, 2014 12:10 pm
 
Forum: Investing - Theory, News & General
Topic: Cash to draw on - Safe Withdrawal Rate
Replies: 10
Views: 1074

Re: What is the expected return of this portfolio over 50 yr

Is it possible that what was calculated was not 0.05% but rather 0.05 or 5.00%? The difference between 8% and 3% in my calculation is $5,737,702 vs $1,127,969, which would be a problem.
by dbr
Sat Sep 06, 2014 12:07 pm
 
Forum: Investing - Theory, News & General
Topic: What is the expected return of this portfolio over 50 yrs
Replies: 21
Views: 1167

Re: Poll: Cash Holdings

I don't count checking as portfolio any more than I count my shoes or my car. So I have 0% cash in my portfolio. When I bonds change their name to I cash I will count them as cash. I think the OP really wants to know how many people hold significant fractions of their true portfolio assets in CDs a...
by dbr
Sat Sep 06, 2014 11:58 am
 
Forum: Investing - Theory, News & General
Topic: Poll: Cash Holdings
Replies: 65
Views: 3617
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