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Re: Need Income-Wellesley & Wellington or just Wellesley

If your plan is to live entirely off the income generated by dividends and capital gains (and not draw down the fund's principal) then Wellesley will usually provide more income than any combination of Wellesley and Wellington. It is also considerably simpler to hold just one fund. Of course there ...
by dbr
Fri Jan 23, 2015 9:12 pm
 
Forum: Investing - Help with Personal Investments
Topic: Need Income-Wellesley & Wellington or just Wellesley
Replies: 18
Views: 2831

Re: Need Income-Wellesley & Wellington or just Wellesley

If your plan is to live entirely off the income generated by dividends and capital gains (and not draw down the fund's principal) then Wellesley will usually provide more income than any combination of Wellesley and Wellington. It is also considerably simpler to hold just one fund. Of course there ...
by dbr
Thu Jan 22, 2015 11:16 pm
 
Forum: Investing - Help with Personal Investments
Topic: Need Income-Wellesley & Wellington or just Wellesley
Replies: 18
Views: 2831

Re: Size and style tilts - diversification discussion

I was thinking about size and style tilts. I think a case could be made that value tilts don't offer the same diversification that size tilting does. I propose that the above sentence doesn't mean anything. How would you like to define diversification? If you do so in a way that allows a calculatio...
by dbr
Thu Jan 22, 2015 5:19 pm
 
Forum: Investing - Theory, News & General
Topic: Size and style tilts - diversification discussion
Replies: 3
Views: 308

Re: VWINX

Neither.
by dbr
Thu Jan 22, 2015 5:14 pm
 
Forum: Investing - Help with Personal Investments
Topic: VWINX [Vanguard Wellesley]
Replies: 10
Views: 1199

Re: Reporter doing story on pitfalls of doing one's own taxe

I am experienced with doing my own taxes and with taxes prepared by an accountant. I can say I have made my share of tax preparation mistakes myself, none of them irreparable or costly. I have not experienced an error by a paid prepared. A paid preparer did point out an important consideration that ...
by dbr
Thu Jan 22, 2015 11:12 am
 
Forum: Investing - Theory, News & General
Topic: Reporter doing story on pitfalls of doing one's own taxes
Replies: 40
Views: 4668

Re: Silly to consider buying a home because of interest rate

Silly to consider buying a home because of interest rates? It's probably silly to only consider interest rates. Also, would a condo generally be a bad idea? Generally doesn't matter. Specifically does. As with any other decision there are pros and cons on both sides and you have to determine what's...
by dbr
Thu Jan 22, 2015 11:06 am
 
Forum: Personal Finance (Not Investing)
Topic: Silly to consider buying a home because of interest rates?
Replies: 29
Views: 2765

Re: AA for an 18 year old ?

Another point - You want 100% or 90% stocks? Whether that is a good idea may depend on which fund you use. My son lost his money because his stock fund went down with the stock market. He lost his shirt because the stock fund he was invested in was an actively managed loser. It was not a Vanguard f...
by dbr
Thu Jan 22, 2015 11:00 am
 
Forum: Investing - Help with Personal Investments
Topic: AA for an 18 year old ?
Replies: 29
Views: 1492

Re: NYC Teachers' 403b: Fixed Annuity pays 8.25% guaranteed?

There is not in principle any reason that an employer cannot offer a benefit to employees at some cost. NY could have never offered that plan and just paid everyone more. The result might have been better, worse, or indifferent for the employees, the State of NY, or the taxpayers of the State of NY....
by dbr
Thu Jan 22, 2015 10:33 am
 
Forum: Investing - Help with Personal Investments
Topic: NYC Teachers' 403b: Fixed Annuity pays 8.25% guaranteed?
Replies: 23
Views: 6685

Re: Real 3% (CPI plus 3% guaranteed)

There is this: viewtopic.php?f=1&t=32086

It is the NY State example I was looking for in a another thread.
by dbr
Thu Jan 22, 2015 10:24 am
 
Forum: Investing - Help with Personal Investments
Topic: Real 3% (CPI plus 3% guaranteed)
Replies: 21
Views: 1809

Re: AA for an 18 year old ?

If I go with the 50-50 or 60-40 AA would that affect the potential gains in the future in a major way? Because I think (I hope) I can handle seeing the balance go down for a while and knowing that it will eventually come back up. You should probably look at this demonstration: http://www.norstad.or...
by dbr
Thu Jan 22, 2015 10:20 am
 
Forum: Investing - Help with Personal Investments
Topic: AA for an 18 year old ?
Replies: 29
Views: 1492

Re: Real 3% (CPI plus 3% guaranteed)

This sounds like it might be too good to be true. I thought I posted on here last night about the same issue. I basically wrote, I am a firm believer that there are NO free lunches when it comes to investing. If TIPS and Ibonds are not providing anything close then there are extra risks one is taki...
by dbr
Thu Jan 22, 2015 10:04 am
 
Forum: Investing - Help with Personal Investments
Topic: Real 3% (CPI plus 3% guaranteed)
Replies: 21
Views: 1809

Re: ANNUITY is unaccaptable & not a good word

Am I correct in taking funds from the Bonds side of my portfolio for investing into the Annuity ? I think that is too simple. A better idea would be to recognize the annuity as what it is, which is an income stream. It goes in the same category as Social Security. After that you can evaluate how mu...
by dbr
Thu Jan 22, 2015 10:02 am
 
Forum: Investing - Help with Personal Investments
Topic: ANNUITY is unaccaptable & not a good word
Replies: 8
Views: 980

Re: Diversify my portfolio

I do not know what CAGR, Sharpe Ratio, or Sortino Ratio are, but I clearly see the more sliced and diced the Portolio , the more gain over 15 years. The portfolio pictures looked like Dr. Bernstein's portfolio. This encourages me add a Reit Index, and raise my Small cap fund to 8% or 10% from 5%. I...
by dbr
Thu Jan 22, 2015 9:46 am
 
Forum: Investing - Help with Personal Investments
Topic: Diversify my portfolio
Replies: 18
Views: 1706

Re: What counts as "saving"?

There does seem to be great difficulty in deciding whether or not we are talking about savings in a cash flow or in a balance sheet and about issues of income and expense as distinct from changes in net assets. If the OP is really about whether or not a person is saving enough to retire successfully...
by dbr
Thu Jan 22, 2015 9:40 am
 
Forum: Personal Finance (Not Investing)
Topic: What counts as "saving"?
Replies: 128
Views: 6699

Re: Real 3% (CPI plus 3% guaranteed)

I'd dig deeply into the question of who conjures this guarentee and how they do it. With other peoples money - either via indirect taxes or outright confiscation. No private sector employer in their right mind would ever offer such a "guarantee", the attorneys would be all over them for t...
by dbr
Thu Jan 22, 2015 9:25 am
 
Forum: Investing - Help with Personal Investments
Topic: Real 3% (CPI plus 3% guaranteed)
Replies: 21
Views: 1809

Re: Poll: What Percent of TIPS in Taxable Account

Isn't the answer that almost no one who holds TIPS does not have enough tax deferred space to avoid putting any bonds in taxable accounts? The poll is not designed to find out that possibility is it?
by dbr
Thu Jan 22, 2015 9:21 am
 
Forum: Investing - Theory, News & General
Topic: Poll: What Percent of TIPS in Taxable Account
Replies: 27
Views: 1662

Re: Mr. Bogle's "age in bonds" rule is a starting point."

Now Mr. Bogle begins the process by specifying that one should hold age in bonds. That is an absolute that leaves an open question how one should take into account the presence of a pension. Bogle on Mutual Funds: I recommended --as a crude starting point--that an investor's bond position should eq...
by dbr
Thu Jan 22, 2015 9:18 am
 
Forum: Investing - Help with Personal Investments
Topic: Retirement Portfolio - effect of pension
Replies: 5
Views: 866

Re: Retirement Portfolio - effect of pension

[quote="Lax67"]) I end up with an asset allocation of 63% stock / 37% bonds/pension, if I maintain a current and on-going 80% stock / 20% bond allocation. As of today I think I would be comfortable with maintaining an overall 63/37 split throughout my retirement years. Also, my pension pay...
by dbr
Wed Jan 21, 2015 3:47 pm
 
Forum: Investing - Help with Personal Investments
Topic: Retirement Portfolio - effect of pension
Replies: 5
Views: 866

Re: Asset Allocation Question for parents in retirement

The only way to answer a question like this is to address what people want to get out of the money. It seems there are a surprising number of postings from people that are beyond success in retirement having arrived at healthy ages with income streams that meet all their needs and wealth they don't ...
by dbr
Wed Jan 21, 2015 2:14 pm
 
Forum: Investing - Help with Personal Investments
Topic: Asset Allocation Question for parents in retirement
Replies: 4
Views: 499

Re: "When you've won the game, stop playing"

Thanks, Bill. Actually I wonder if the most worrisome point about 2008 is the miss-perception that market crashes recover quickly and do no harm especially if one simply rebalances into them. There is a lot or rhetoric out there about how wonderful it is to "buy stocks cheap." But then, I ...
by dbr
Wed Jan 21, 2015 10:45 am
 
Forum: Investing - Theory, News & General
Topic: "When you've won the game, stop playing"
Replies: 83
Views: 8332

Re: How to select a dividend reinvestment fund at VG

I can't answer to account maintenance, but the CG issue is that funds do distribute realized capital gains if the fund itself has sold assets at a net gain. You can't elect not to take them and they are taxable. In actively managed funds CG distributions can be significant and a major source of tax ...
by dbr
Wed Jan 21, 2015 10:39 am
 
Forum: Investing - Help with Personal Investments
Topic: How to select dividend/Capital-Gains reinvestment fund at VG
Replies: 6
Views: 778

Re: "When you've won the game, stop playing"

Dr. Bernstein is addressing legitimate concerns but I am not so sure the rhetoric is really that appropriate. I don't think it is a game and for sure you can't quit, at least not in a manner any of us would want to seriously contemplate. I suppose the expression might serve the purpose of calling at...
by dbr
Wed Jan 21, 2015 9:35 am
 
Forum: Investing - Theory, News & General
Topic: "When you've won the game, stop playing"
Replies: 83
Views: 8332

Re: Adjusted Closing Price

PapaGeek, If you are talking about common stocks, there is no such thing as an adjusted closing price. The closing price is exactly that--the price at market close. If you are taking about funds with NAVs, the NAV will include the effect of dividends paid out when they are paid out. The funds repor...
by dbr
Tue Jan 20, 2015 10:52 pm
 
Forum: Investing - Theory, News & General
Topic: Adjusted Closing Price
Replies: 29
Views: 1337

Re: Worth upgrading from Delta Gold to Platinum?

We had no trouble saving enough on one flight to pay for the card.
by dbr
Tue Jan 20, 2015 4:37 pm
 
Forum: Personal Finance (Not Investing)
Topic: Worth upgrading from Delta Gold to Platinum?
Replies: 4
Views: 361

Re: Poll: What Percent of TIPS in Taxable Account

Why would you purchase TIPs in a taxable account if you were in the 28% tax bracket or higher today? I thought these vehicles are tax in-efficient to hold in taxable. What has changed? I don't mean to be obtuse, but this security confuses me in a taxable account. TIPS are less tax inefficient than ...
by dbr
Tue Jan 20, 2015 3:01 pm
 
Forum: Investing - Theory, News & General
Topic: Poll: What Percent of TIPS in Taxable Account
Replies: 27
Views: 1662

Re: Nitpicking my portfolio

1. I sympathize in principle with the multiple broker and multiple fund company concept. In practice the idea is not so convincing. I do it because the 401K is one place and taxable is another. I also have a somewhat meaningful holding in a fund that could be a Vanguard fund and is not. The differen...
by dbr
Tue Jan 20, 2015 2:55 pm
 
Forum: Investing - Help with Personal Investments
Topic: Nitpicking my portfolio
Replies: 8
Views: 694

Re: Transfer of Assets and Capital Gains question

If you know the cost basis and other information such as date of purchase needed to file your tax return and these are not covered shares and that basis is not going to be reported by the broker to the IRS when you sell, then it does not matter what either broker thinks the basis is or what data tra...
by dbr
Tue Jan 20, 2015 2:11 pm
 
Forum: Investing - Help with Personal Investments
Topic: Transfer of Assets and Capital Gains question
Replies: 5
Views: 342

Re: Capital Gains help

Electron wrote: Your cost could be lower depending on your tax bracket.


I would emphasize this point.
by dbr
Tue Jan 20, 2015 9:11 am
 
Forum: Investing - Theory, News & General
Topic: Capital Gains help
Replies: 18
Views: 947

Re: Fire Wife's Advisor and Incur Tax Hit or Stay The Course

Livesoft is right, if you have been paying your taxes every year you have no untaxed capital gains this year except what have occurred since Jan 1 2015, which for most of us is zero. When an interest payment or capital gain appears on a 1099, you pay taxes on it. It makes no difference if interest ...
by dbr
Tue Jan 20, 2015 9:09 am
 
Forum: Investing - Help with Personal Investments
Topic: Fire Wife's Advisor and Incur Tax Hit or Stay The Course?
Replies: 19
Views: 1884

Re: Chat with Vanguard: robo-advisers and site enhancements

It's possible that there is a quest here for unnecessary over management.
by dbr
Mon Jan 19, 2015 8:31 pm
 
Forum: Investing - Theory, News & General
Topic: Chat with Vanguard: robo-advisers and site enhancements
Replies: 19
Views: 2676

Re: Land - Me or my Neighbor

I am also a homeowner, since 1974. I would not even go into property which belongs to others. What's not my property is not my business. People sue for anything nowadays. Think about cutting some brush there, but not flush to the ground and an 8 inch piece of branch with a sharp edge stays behind. ...
by dbr
Mon Jan 19, 2015 6:11 pm
 
Forum: Personal Finance (Not Investing)
Topic: Land - Me or my Neighbor
Replies: 44
Views: 3411

Re: Capital Gains help

I spoke with vanguard personal advisors. Wanted to reduce my actively managed funds and move to a more indexed diversified portfolio. Currently 40% of my taxable account is in Wellington (VWENX) with ~30k of unrealized capital gains. Vanguard recommended not touching VWENX because of the capital ga...
by dbr
Mon Jan 19, 2015 6:05 pm
 
Forum: Investing - Theory, News & General
Topic: Capital Gains help
Replies: 18
Views: 947

Re: 401k brokerage fee for Vanguard funds

Thank you all so much for your replies and feedback. This is such a wonderful forum!!! You guys are right about fee disclosure. It is not to be found anywhere on JPMorgan website where my 401k info is shown. It says to look at quarterly statements but this is all it says: "No individual partic...
by dbr
Mon Jan 19, 2015 5:48 pm
 
Forum: Investing - Help with Personal Investments
Topic: 401k brokerage fee for Vanguard funds
Replies: 8
Views: 648

Re: Two CSR Fed Employees Retiring 2015 - Need Input Please!

Whenever a case comes up where people have pension income that meets what they want to spend, with a COLA, the real question is what they want to do with their savings beyond that. So, what are your thoughts? Here are some ideas: 1. You need a reserve to count on when there are unplanned/unfortunate...
by dbr
Mon Jan 19, 2015 1:27 pm
 
Forum: Investing - Help with Personal Investments
Topic: Two CSRS Fed Employees Retiring 2015 - Need Input Please!
Replies: 43
Views: 2385

Re: is the pitch for index-based annuities childish?

One could say that being able to be successful at pitching such a horrible deal is in fact an extremely sophisticated skill and anything but childish.
by dbr
Mon Jan 19, 2015 1:13 pm
 
Forum: Investing - Theory, News & General
Topic: is the pitch for index-based annuities childish?
Replies: 15
Views: 774

Re: is the pitch for index-based annuities childish?

i know index annuities are a hot topic right now, but it really struck me: isn't the entire premise childish? you're hoping for equity-like returns with no risk and no volatility? isn't this the investing equivalent of buying magic beans? Not if you ask the investor to pay a high enough fee to buy ...
by dbr
Mon Jan 19, 2015 12:42 pm
 
Forum: Investing - Theory, News & General
Topic: is the pitch for index-based annuities childish?
Replies: 15
Views: 774

Re: Land - Me or my Neighbor

I would ask my insurance company and if I were really concerned I would consult a lawyer. It would seem off hand that you would not be responsible simply because the land exists, but if your improvements were a direct cause of someone being injured then there might be a problem. For example, if you ...
by dbr
Mon Jan 19, 2015 12:23 pm
 
Forum: Personal Finance (Not Investing)
Topic: Land - Me or my Neighbor
Replies: 44
Views: 3411

Re: Retirement Plan: How am I doing?

Thanks all for providing your input on my being on track to retire next year. With regard to saving approx 1000-1500 a month once in retirement, do you have any guidance on where I should put this money? Should I just use a cd ladder approach or is there anything else that is more tax efficient wit...
by dbr
Mon Jan 19, 2015 12:03 pm
 
Forum: Investing - Help with Personal Investments
Topic: Retirement Plan: How am I doing?
Replies: 16
Views: 1719

Re: Wellington Fund as primary retirement investment

I agree that the real deciding point for munis is exemption from state tax using a state specific fund in a high tax state.
by dbr
Mon Jan 19, 2015 11:38 am
 
Forum: Investing - Help with Personal Investments
Topic: Wellington Fund as primary retirement investment
Replies: 29
Views: 4711

Re: Honda Civic vs Fit Safety Question

The physics of weight in cars is an undeniable effect. The effect is that the lighter of two cars in a collision experiences a greater change in velocity than does the heavier car. There is a direct relationship between vehicle velocity change, also sometimes called crash severity, and injury severi...
by dbr
Mon Jan 19, 2015 10:13 am
 
Forum: Personal Consumer Issues
Topic: Honda Civic vs Fit Safety Question
Replies: 55
Views: 3316

Re: What do you think about this retirement plan?

The tax bracket that matters is at the time of withdrawal, not the time of retirement, correct? So if I'm making $200K before retiring, but only withdrawing $100K in income during retirement, my taxes are based on the $100K? We're at the beginning of our careers, so I expect our income to go up qui...
by dbr
Mon Jan 19, 2015 9:58 am
 
Forum: Investing - Help with Personal Investments
Topic: What do you think about this retirement plan?
Replies: 15
Views: 1750

Re: Bond portfolio advice

You can go to the Vanguard web page, pull up a list of bond funds and sort on SEC yield. In general bond funds that yield better than CDs of a few years term will be risky as bonds go due to long duration or to credit risk. My reading of what you are saying is that CDs would be a better choice, and ...
by dbr
Sun Jan 18, 2015 10:00 pm
 
Forum: Investing - Help with Personal Investments
Topic: Bond portfolio advice
Replies: 7
Views: 700

Re: Retirement Plan: How am I doing?

One thing to keep in mind is that many of these people with multimillion dollar retirement funds have no pension. Is your pension a federal, state or local government pension? Federal government pension would be more secure. State and local government pensions are more likely to change if the gover...
by dbr
Sun Jan 18, 2015 6:05 pm
 
Forum: Investing - Help with Personal Investments
Topic: Retirement Plan: How am I doing?
Replies: 16
Views: 1719

Re: Fire Wife's Advisor and Incur Tax Hit or Stay The Course

Why not compare the tax cost to the investment cost. If the cap gains are 50% of the asset value and the tax is 15%, then the cost is 7.5% of assets. If the funds are costing you 2% a year in excess costs, then the breakeven time is 3.5 years to be ahead. Actually if the funds invested are actively ...
by dbr
Sun Jan 18, 2015 6:01 pm
 
Forum: Investing - Help with Personal Investments
Topic: Fire Wife's Advisor and Incur Tax Hit or Stay The Course?
Replies: 19
Views: 1884

Re: When is it tax loss harvesting...

But what if I sell when the oil stocks are down and re-invest in a different sector, or in an index where oil is only a minority of the portfolio. The entire market is not down right now, just oil stocks. Aren't I selling low and buying high if I don't stay entirely stay in the oil sector? As other...
by dbr
Sun Jan 18, 2015 5:55 pm
 
Forum: Investing - Help with Personal Investments
Topic: When is it tax loss harvesting...
Replies: 9
Views: 897

Re: Investing for 18year old and 23year old

You can avoid management fees and other costs by placing the assets in accounts at a low cost broker while avoiding any kind of advisory account or managed account. Avoid any kind of financial advisor like the plague until and only if you have a specific need and are willing to pay the cost for that...
by dbr
Sun Jan 18, 2015 5:47 pm
 
Forum: Investing - Help with Personal Investments
Topic: Investing for 18year old and 23year old
Replies: 14
Views: 1057

Re: Are there any advisors on this site?

Derek (or anyone) what fraction or to what degree does the traditional investment advisor base have the knowledge, experience, and competence to do tax and estate planning, or even personal financial planning? I would think the last person one would consult for tax and estate planning would be someo...
by dbr
Sun Jan 18, 2015 5:39 pm
 
Forum: Investing - Theory, News & General
Topic: Are there any advisors on this site?
Replies: 30
Views: 2571

Re: 5.6% stable value fund - what allocation?

jmndu99 wrote:Wow, my 10 yr on the stable value fund in my 401k is like 3.5%.

How can I get this much?


Almost certainly by working for an employer that is subsidizing the fund as an employee benefit, most likely a state or local public entity.

I wonder if the OP will be willing to say what the plan is.
by dbr
Sun Jan 18, 2015 4:46 pm
 
Forum: Investing - Theory, News & General
Topic: 5.6% stable value fund - what allocation?
Replies: 12
Views: 944
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