Search found 15755 matches

Return to advanced search

Re: Tilting

My thought is that you discuss these things by looking in detail at what things are rather than at what things are called. I haven't studied the article, but to the extent they seem to be looking at what things are, it is good. They could probably delete the words active and passive everywhere they ...
by dbr
Sun Apr 26, 2015 11:28 am
 
Forum: Investing - Theory, News & General
Topic: Tilting
Replies: 37
Views: 1805

Re: Spendy spouse

I actually feel very strongly that a lot of the Boglehead advice on these consumer forums is dogmatically singleminded to the point of equating savings/thrift with being ethically good. If we followed BH-advice only, we would never live in high COL areas, drive nicer than econobox cars, and take on...
by dbr
Sun Apr 26, 2015 11:24 am
 
Forum: Personal Finance (Not Investing)
Topic: Spendy spouse
Replies: 58
Views: 3764

Re: Portfolio Optimization software program - Recommendation

I don't know if Financial Engines is really what you want or not. If you haven't looked at it, you might be interested. If you have and that is not really responsive to what you are trying to do, then forget the suggestion. FE, by the way, is sometimes supplied as part of some 401K plans.
by dbr
Sun Apr 26, 2015 11:13 am
 
Forum: Investing - Help with Personal Investments
Topic: Portfolio Optimization software program - Recommendations?
Replies: 3
Views: 211

Re: Wellesley for pool fund?

Great responses; thank you everyone. I fall into the mindset articulated here. I realize money is fungible and, therefore, there is no need to bifurcate from my portfolio but it just helps me ensure my separate goals are being achieved independent of a "want" like a pool Fair enough. Howe...
by dbr
Sun Apr 26, 2015 10:46 am
 
Forum: Investing - Help with Personal Investments
Topic: Wellesley for pool fund?
Replies: 13
Views: 941

Re: Can you make trades directly between investments?

My broker does not show a "sell to buy" choice for stocks and ETF's. I guess I don't know what they do if one enters a sell order followed by a buy order, but it could be they will not allow the buy order until cash in the sweep account is actually settled. You should probably call your br...
by dbr
Sun Apr 26, 2015 10:04 am
 
Forum: Investing - Help with Personal Investments
Topic: Can you make trades directly between investments?
Replies: 11
Views: 497

Re: Wellesley for pool fund?

I would do it. The Wellesley fund was only down 9.84% in 2008. Other than that, it has performed very well for a 1/3 stock and 2/3 bond fund. But how risky is the OP's overall portfolio? Why not just withdraw money from the portfolio as a whole when it is needed? What is the need to put the money i...
by dbr
Sun Apr 26, 2015 9:33 am
 
Forum: Investing - Help with Personal Investments
Topic: Wellesley for pool fund?
Replies: 13
Views: 941

Re: Tilting

Maynard F. Speer wrote:I think if you're being strict you have to consider almost all 'choices' as active decisions ..



You can. I am not sure how many people do. I certainly don't.
by dbr
Sun Apr 26, 2015 9:31 am
 
Forum: Investing - Theory, News & General
Topic: Tilting
Replies: 37
Views: 1805

Re: Cash as an asset class?

Are options investments? I think cash has optionality. They are puts on the stock market, where the cost is not the upfront premium but the spread between the cash return and some other benchmark, depending on how you conceptualize the opportunity cost. I think that is a reasonable point of view if...
by dbr
Sun Apr 26, 2015 9:30 am
 
Forum: Investing - Help with Personal Investments
Topic: Cash as an asset class?
Replies: 35
Views: 2744

Re: Tilting

I don't see tilting as active management. Tilting is just a choice to hold a portfolio that has a different asset allocation than the total market. One would do that in order to hold a different expected return and expected risk than the market offers. What those numbers are and why the investor wou...
by dbr
Sun Apr 26, 2015 8:52 am
 
Forum: Investing - Theory, News & General
Topic: Tilting
Replies: 37
Views: 1805

Re: Spendy spouse

One agreement you can try to reach is your mutual commitment to providing for your future financial security. The point is that what you spend and your different tastes in the cost of things is a non-issue unless it causes a problem for something more important, namely your financial future. Do you ...
by dbr
Sun Apr 26, 2015 8:28 am
 
Forum: Personal Finance (Not Investing)
Topic: Spendy spouse
Replies: 58
Views: 3764

Re: Wellesley for pool fund?

You can do this one of two ways. If you really, really want just the money you need at the time you need it, then do not invest that money in stocks. Put it in a CD or even a savings account. If you don't like foregoing expected return and are flexible about how much you can spend and when, then don...
by dbr
Sun Apr 26, 2015 8:15 am
 
Forum: Investing - Help with Personal Investments
Topic: Wellesley for pool fund?
Replies: 13
Views: 941

Re: Retirement calculation lies? [Geometric vs. arithmetic m

The opening poster makes a good point Let us not get lost in mere semantics with geometric vs. arithmetic mean. We can call it average annual rate of return versus annualized compounded rate of return. The annualized compounded rate of return is simply the equivalent constant annual rate of return ...
by dbr
Sun Apr 26, 2015 8:07 am
 
Forum: Investing - Theory, News & General
Topic: Retirement calculation lies? [Geometric vs. arithmetic mean]
Replies: 49
Views: 5215

Re: Cash as an asset class?

Cash, CDs, and short term bonds cannot be relied on to provide positive real returns, so are not investments in the relevant sense. Is a 5-year Treasury note an investment? How about a 7-year? Ten-year? Is any bond an investment? Where do you draw the line? A good 5-year CD yields 2.25%, and a 5-ye...
by dbr
Sun Apr 26, 2015 8:02 am
 
Forum: Investing - Help with Personal Investments
Topic: Cash as an asset class?
Replies: 35
Views: 2744

Re: Mutual Funds and Compound Interest

The way I understand it, compound interest works like this: 1. You invest, for example, $1,000 into an interest bearing account. 2. The $1,000 earns a certain % interest at different points over time. 3. The first interest credit earns interest when the second interest credit rolls around, then sec...
by dbr
Sat Apr 25, 2015 10:15 am
 
Forum: Investing - Help with Personal Investments
Topic: Mutual Funds and Compound Interest
Replies: 9
Views: 669

Re: Bond allocation-retire in 2 yrs

Sorry, I missed the details about the spending. Still, why not follow a course of not taking any more risk than necessary and moderate some in bonds. A 60/40 allocation might be pretty good, or 70/30. It might be a good idea to implement a running model of what is happening using some of the retirem...
by dbr
Sat Apr 25, 2015 10:14 am
 
Forum: Investing - Help with Personal Investments
Topic: Bond allocation-retire in 2 yrs
Replies: 14
Views: 1087

Re: Mutual Funds and Compound Interest

The above is a good rendering. One point of clarification is that if the "earnings" are market returns on an investment, meaning the value of the investment has increased (or decreased) the "earnings" are still "reinvested" automatically in the sense of that article. Th...
by dbr
Sat Apr 25, 2015 10:09 am
 
Forum: Investing - Help with Personal Investments
Topic: Mutual Funds and Compound Interest
Replies: 9
Views: 669

Re: Bond allocation-retire in 2 yrs

If by retirement you mean you are going to start living from withdrawals from your portfolio for the next fifty years or so, then the one thing that matters above all is how fast you intend to withdraw. Once you settle that you may find that exactly how you are allocated is of lesser importance. You...
by dbr
Sat Apr 25, 2015 9:32 am
 
Forum: Investing - Help with Personal Investments
Topic: Bond allocation-retire in 2 yrs
Replies: 14
Views: 1087

Re: What is too long to stay the course?

Let's vote! What's more annoying? [_] The cherry picked time interval. [_] The cherry picked mutual fund. Both are a problem, but I think the cherry picked time interval is the more dangerous of the two because it is an error that can apply even when the investment plan and fund selection is sound....
by dbr
Fri Apr 24, 2015 7:05 pm
 
Forum: Investing - Theory, News & General
Topic: What is too long to stay the course?
Replies: 50
Views: 3275

Re: Mutual Funds and Compound Interest

Mutual funds compound in the same sense as an interest paying account with some generalization on the math. For mutual funds use annual return rather than interest paid. Secondly recognize that the annual return varies from year to year rather than being that same rate of interest every year. Having...
by dbr
Fri Apr 24, 2015 7:02 pm
 
Forum: Investing - Help with Personal Investments
Topic: Mutual Funds and Compound Interest
Replies: 9
Views: 669

Re: Do you Bogleheads really follow the 3-4% SWR rule?

Ok, so taking out 4% real no matter what seems a bit robotic/unrealistic. But do you guys agree that your portfolio has to roughly average 4% real over a 30-35 year withdrawal period? Surely nobody takes out 10%+, even if the market has had a great year? Or do you? No, we already know from historic...
by dbr
Fri Apr 24, 2015 2:07 pm
 
Forum: Investing - Theory, News & General
Topic: Do you Bogleheads really follow the 3-4% SWR rule?
Replies: 47
Views: 3687

Re: What is too long to stay the course?

The Captain of the Titanic stayed on course too long. :happy I will simply repeat that "stay the course" is a horse racing not a maritime term :happy https://www.bogleheads.org/forum/viewtopic.php?f=10&t=130693#p1924995 This is the first hit on Google: http://en.wikipedia.org/wiki/Sta...
by dbr
Fri Apr 24, 2015 8:15 am
 
Forum: Investing - Theory, News & General
Topic: What is too long to stay the course?
Replies: 50
Views: 3275

Re: SWR rule and Social Security

This is one of the typical examples why safe withdrawal rate studies are studies of how portfolios work and not plans for managing assets in retirement. There are a bunch of retirement planning models out there that incorporate such features as the beginning of a new income stream several years into...
by dbr
Thu Apr 23, 2015 6:42 pm
 
Forum: Investing - Theory, News & General
Topic: SWR rule and Social Security
Replies: 13
Views: 1081

Re: Do you Bogleheads really follow the 3-4% SWR rule?

It's more of a guideline than a hard and fast rule. https://www.youtube.com/watch?v=6GMkuPiIZ2k I find the concept of an SWR far more useful in determining how much money you need to retire than in actually managing it in retirement. The idea that your expenses will go up every year of retirement w...
by dbr
Thu Apr 23, 2015 5:48 pm
 
Forum: Investing - Theory, News & General
Topic: Do you Bogleheads really follow the 3-4% SWR rule?
Replies: 47
Views: 3687

Re: Do you Bogleheads really follow the 3-4% SWR rule?

No. I am more aligned with the above re Taylor's approach but acknowledge retiring in 1982 might have been just lucky circumstances in that the great returns of equities in the 1990s were ahead as well as the stunning returns of Treasuries for the next 30 years. I think a 3-4% withdrawal rate is a ...
by dbr
Thu Apr 23, 2015 3:52 pm
 
Forum: Investing - Theory, News & General
Topic: Do you Bogleheads really follow the 3-4% SWR rule?
Replies: 47
Views: 3687

Re: Who follows Age in Bonds

I use a "Fountain of Youth" tonic to adjust my age to my allocation in bonds :mrgreen:
by dbr
Thu Apr 23, 2015 3:37 pm
 
Forum: Investing - Theory, News & General
Topic: Who follows Age in Bonds
Replies: 62
Views: 4186

Re: Can I open a Vanguard Brokerage account with my...?

I've finally managed to speak to the right person with my self directed ira custodian and they've given me the answer I am looking for. I can basically open a general non-ira brokerage account with vanguard and name my sdira custodian as the account holder. I can then transfer funds to and from the...
by dbr
Thu Apr 23, 2015 3:10 pm
 
Forum: Investing - Help with Personal Investments
Topic: Can I open a Vanguard Brokerage account with my...?
Replies: 25
Views: 1578

Re: Help re Car

In any case, if it has back seats you should be ashamed of yourself. Miata is the obvious choice.
by dbr
Thu Apr 23, 2015 2:22 pm
 
Forum: Personal Consumer Issues
Topic: Help re Car
Replies: 19
Views: 1639

Re: Do you Bogleheads really follow the 3-4% SWR rule?

No I don't. For one reason the onset of Social Security income will have changed the need for withdrawals before and after that change. SS is not the only financial factor that changes at some point in time. There have been and will be changes is expenses that have to be supported. One can anticipa...
by dbr
Thu Apr 23, 2015 2:16 pm
 
Forum: Investing - Theory, News & General
Topic: Do you Bogleheads really follow the 3-4% SWR rule?
Replies: 47
Views: 3687

Re: Do you Bogleheads really follow the 3-4% SWR rule?

No I don't. For one reason the onset of Social Security income will have changed the need for withdrawals before and after that change. SS is not the only financial factor that changes at some point in time. There have been and will be changes is expenses that have to be supported. One can anticipat...
by dbr
Thu Apr 23, 2015 2:08 pm
 
Forum: Investing - Theory, News & General
Topic: Do you Bogleheads really follow the 3-4% SWR rule?
Replies: 47
Views: 3687

Re: [What is safest vehicle on the road today that I can buy

While some may consider this non-responsive, the first order determinant of chances of dying in an auto accident is exposure in miles driven per year and selection of what roads are used. A person concerned enough to exhaustively study vehicle selection should also exhaustively consider how to reduc...
by dbr
Thu Apr 23, 2015 8:59 am
 
Forum: Personal Consumer Issues
Topic: [What is safest vehicle on the road today that I can buy?]
Replies: 83
Views: 4512

Re: Individual Stocks vs ETFs - which one is better and why?

It's not a tough question. Diversifiable risk is a known fact. Diversifiable risk is risk that is not rewarded by increased expected return. In short, for the same return an individual stock will be more risky than a diversified investment of the same return. I think the confusing part is that if yo...
by dbr
Thu Apr 23, 2015 8:50 am
 
Forum: Investing - Theory, News & General
Topic: Individual Stocks vs ETFs - which one is better and why?
Replies: 9
Views: 741

Re: Recommended stock to bond ratio??

Nisi's post is packed with information and good insight. It is a fact that there is no recommended stock/bond allocation for anyone in particular. The issue is a decision which depends on the preference and judgement of the investor. That said, a driving consideration in any decision of preference a...
by dbr
Thu Apr 23, 2015 8:22 am
 
Forum: Investing - Help with Personal Investments
Topic: Recommended stock to bond ratio??
Replies: 15
Views: 1416

Re: Coming to terms with low risk tolerance

I what I find most interesting is that 2009 has changed the psychology of investors in an interesting way -- the rapid recovery from the massive loses has made people more risk tolerant with the stock market, cause they inherently believe it is guaranteed to rebound and continue upward. I think the...
by dbr
Thu Apr 23, 2015 8:12 am
 
Forum: Investing - Help with Personal Investments
Topic: Coming to terms with low risk tolerance
Replies: 46
Views: 3451

Re: Cash as an asset class?

My liquidity criteria to consider something cash usually are: I can sell it or use it within one or two business days with no loss in value to buy something else . Then in effect cash is not a meaningful asset class for investing purposes. Please expand; this does not compute. Note that the "s...
by dbr
Wed Apr 22, 2015 4:26 pm
 
Forum: Investing - Help with Personal Investments
Topic: Cash as an asset class?
Replies: 35
Views: 2744

Re: Buying a Car to commute - SUV or Sedan?

Current model sedans seem to universally share body styles that offer poor visibility back and to the side, exactly into the blind spot you need to see when changing lanes on high speed multi-lane roadways. Other body styles may or may not share that problem. Two models considered to be considerably...
by dbr
Wed Apr 22, 2015 4:22 pm
 
Forum: Personal Consumer Issues
Topic: Buying a Car to commute - SUV or Sedan?
Replies: 37
Views: 2416

Re: Retirees: What is your SWR in retirement?

Do you guys distinguish between withdrawal and spending? I know my parents are withdrawing about 4% or higher from their IRAs and running into the minimum required IRA withdrawal requirements. However they are not spending anywhere near 4% and probably closer to 1% of what they withdraw, the rest g...
by dbr
Wed Apr 22, 2015 4:17 pm
 
Forum: Investing - Theory, News & General
Topic: Retirees: What is your SWR in retirement?
Replies: 45
Views: 3949

Re: Retirees: What is your SWR in retirement?

Measuring just the last three years when wife/me were both retired and funding our expenses primarily from our joint portfolio, the average has been 8-9%. When we start our respective SS in less than three years (both at age 70), the projected joint withdrawal rate drops to 1.7% FWIW, - Ron Yes, a ...
by dbr
Wed Apr 22, 2015 8:03 am
 
Forum: Investing - Theory, News & General
Topic: Retirees: What is your SWR in retirement?
Replies: 45
Views: 3949

Re: Cash as an asset class?

My liquidity criteria to consider something cash usually are: I can sell it or use it within one or two business days with no loss in value to buy something else . Then in effect cash is not a meaningful asset class for investing purposes. I agree with that and do not concern myself with what asset...
by dbr
Wed Apr 22, 2015 8:00 am
 
Forum: Investing - Help with Personal Investments
Topic: Cash as an asset class?
Replies: 35
Views: 2744

Re: Retirees: What is your SWR in retirement?

. Who are these 3% SWR recommendations really directed at? It can't be the mass population, it's likely geared towards a small subset of potential retirees. I would understand the statements to be coming from people who want to refine SWR analysis to be a calculation of safe withdrawal probabilitie...
by dbr
Wed Apr 22, 2015 7:46 am
 
Forum: Investing - Theory, News & General
Topic: Retirees: What is your SWR in retirement?
Replies: 45
Views: 3949

Re: Retirees: What is your SWR in retirement?

Is this a question about what people think is a safe withdrawal rate, or is it a question about what some people's withdrawal rate actually is (and they think it is safe or more), or is this a question about how some people can have a different safe withdrawal rate from other people? This last is no...
by dbr
Tue Apr 21, 2015 6:22 pm
 
Forum: Investing - Theory, News & General
Topic: Retirees: What is your SWR in retirement?
Replies: 45
Views: 3949

Re: Diversify out of company stock

A first step is to organize your tax lots in order of unrealized gain and see how much progress you can make diversifying away the least tax costly lots. Does your retirement withdrawal plan involve selling taxable assets to make withdrawals? If so, you might well be selling from these assets all al...
by dbr
Tue Apr 21, 2015 6:16 pm
 
Forum: Investing - Help with Personal Investments
Topic: Diversify out of company stock
Replies: 12
Views: 842

Re: "How much of your portfolio is in index funds, and why?"

Given the peculiarities of such things as Vanguard Treasury funds not being index funds, it is difficult to say what the meaningful answer to this question is for me. I suspect the useful answer to the spirit of the question is 100%, but as a matter fact the allocation to actual index funds is less ...
by dbr
Tue Apr 21, 2015 5:48 pm
 
Forum: Investing - Theory, News & General
Topic: "How much of your portfolio is in index funds, and why?"
Replies: 62
Views: 5394

Re: Cash as an asset class?

Would it be OK to count pensions as part of one's cash asset type? Not if the result is that it causes you to take too much risk in stocks. For you, if you do that, do you end up taking too much risk in stocks? How would you know? Hint: You have to start by understanding how you decide on an asset ...
by dbr
Tue Apr 21, 2015 4:49 pm
 
Forum: Investing - Help with Personal Investments
Topic: Cash as an asset class?
Replies: 35
Views: 2744

Re: Cash as an asset class?

I track cash in order to be sure it is not above a very small allocation. I am not going to specify the definition of this cash.
by dbr
Mon Apr 20, 2015 8:10 pm
 
Forum: Investing - Help with Personal Investments
Topic: Cash as an asset class?
Replies: 35
Views: 2744

Re: Buying a Car to commute - SUV or Sedan?

PowDay wrote:With a commute like that, I would seriously look into a model with adaptive cruise control. Subaru and Mazda offer it at this price point.


That feature is indeed very cool.
by dbr
Mon Apr 20, 2015 7:40 pm
 
Forum: Personal Consumer Issues
Topic: Buying a Car to commute - SUV or Sedan?
Replies: 37
Views: 2416

Re: Warren Buffett on equties, treasuries, and "risk"

lack_ey, thanks for the links, I've lurked around but hadn't seen the posts on this year's letter, and should have searched - :oops: ... you and should welcome a few of those scary downturns a few times in your investing lifetime. I know, my (older) partners get mad at me when I tell them I keep ho...
by dbr
Mon Apr 20, 2015 3:50 pm
 
Forum: Investing - Theory, News & General
Topic: Warren Buffett on equties, treasuries, and "risk"
Replies: 46
Views: 4263

Re: “Entry level” luxury cars under 40k

Subaru WRX.
by dbr
Mon Apr 20, 2015 1:44 pm
 
Forum: Personal Consumer Issues
Topic: “Entry level” luxury cars under 40k
Replies: 93
Views: 7966

Re: Old 401K Plan Fees

This would sure be an example where "not peeking" is a bad idea.
by dbr
Mon Apr 20, 2015 1:09 pm
 
Forum: Investing - Help with Personal Investments
Topic: Old 401K Plan Fees
Replies: 4
Views: 160

Re: Bernstein: "If you've won the game, stop playing."

When Bill Bernstein talks about investing in bonds he probably means short-term US Treasuries. Are those bonds risky? The volatility is low and short term yields tend to track inflation. The "rock" side of the "rock and a hard place" for short bonds is that short real yields wil...
by dbr
Mon Apr 20, 2015 1:05 pm
 
Forum: Investing - Theory, News & General
Topic: Bernstein: "If you've won the game, stop playing."
Replies: 146
Views: 14764

Re: Can you help me solve this brainteaser about allocation?

The underlying issue is the mistaken assumption that allocation decisions are ultimately mathematically solvable. Allocation decisions need to be based on human, not mathematical, criteria. In this case we have conflicting criteria between maximizing expected return (presumably risk-adjusted return...
by dbr
Mon Apr 20, 2015 8:14 am
 
Forum: Investing - Theory, News & General
Topic: Can you help me solve this brainteaser about allocation?
Replies: 55
Views: 2702
Next

Return to advanced search