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Re: is optimization(TLH+tax credit) worth cost(time,behavior

We also have a large carryover loss in the 6=figure range. Even so, we still TLH whenever possible because this will help us shift income into years when our tax rate is very low. Yes, it has a chance of not making any difference, but we cannot predict that. I'd rather have booked the loss in a yea...
by dbr
Fri Oct 24, 2014 3:26 pm
 
Forum: Investing - Help with Personal Investments
Topic: is optimization(TLH+tax credit) worth cost(time,behavior)?
Replies: 14
Views: 787

Re: Athens and London, what to do and where to stay?

I understand about 11 days being short but this is the middle of a 6+ week trip where we end up in Athens and next have to leave from London. Since you will be in Athens first you should be OK if there is a strike or some other disruption. Unless you will be really jet lagged it might be best to sp...
by dbr
Fri Oct 24, 2014 3:10 pm
 
Forum: Personal Consumer Issues
Topic: Athens and London, what to do and where to stay?
Replies: 27
Views: 840

Re: "Jack Bogle on Warren Buffett, Bill Gross and How to Inv

I doubt that statements made in sound bite context to the media that one should buy an S&P 500 fund are meant to be statements that one should buy an S&P 500 fund but not a TSM fund. Did we hear Mr. Buffett state that he had instructed his trustees to buy the S&P 500 but at all costs to ...
by dbr
Fri Oct 24, 2014 11:47 am
 
Forum: Investing - Theory, News & General
Topic: "Jack Bogle on Warren Buffett, Bill Gross and How to Invest"
Replies: 14
Views: 1560

Re: Vanguard, TIPs, Accrued Interest & RMDs

Of course, what you, I, or anyone else thinks has nothing to do with what the IRS, and the law, actually does. I have never seen a note anywhere that the asset value of a bond fund at the end of the reporting period is to be adjusted for accrued interest for purposes of calculating the RMD. If such ...
by dbr
Fri Oct 24, 2014 11:10 am
 
Forum: Personal Finance (Not Investing)
Topic: Vanguard, TIPs, Accrued Interest & RMDs
Replies: 6
Views: 398

Re: 2nd Opinions on Bond Alternatives?

You are talking to people who are trying to sell you a bill of goods in order to enrich themselves.

Why are you talking to these guys?
by dbr
Fri Oct 24, 2014 11:00 am
 
Forum: Investing - Help with Personal Investments
Topic: 2nd Opinions on Bond Alternatives?
Replies: 35
Views: 2048

Re: Should I Sue?

If you are saying the damage was from water pooling on the floor because the drainage was wrong and you lost a $7500 couch as a consequence, then I would say the negligence was yours. No basement or garage should be assumed to be immune to water on the floor during rainstorms and a reasonable person...
by dbr
Fri Oct 24, 2014 10:54 am
 
Forum: Personal Consumer Issues
Topic: Should I Sue? [couch damaged in garage of rental]
Replies: 30
Views: 2121

Re: investing during retirment

Withdrawing money from a portfolio has nothing to do with trying to engineer some kind of array of dividend and interest payments from holdings. Trying to do that is awkward, unnecessary, and may even result in distorted investment decisions. That does not mean that distributions from investments th...
by dbr
Fri Oct 24, 2014 10:27 am
 
Forum: Investing - Help with Personal Investments
Topic: investing during retirment
Replies: 20
Views: 1808

Re: Athens and London, what to do and where to stay?

In London if you want clean cheap newish no frills and centrally located then I would look into Premier Inn (they have a couple locations-- Blackfriars and County Inn are a couple of them). They are almost like a grown up hostel/dorm-- not a lot of charm (although friendly service) but perfectly ad...
by dbr
Fri Oct 24, 2014 10:19 am
 
Forum: Personal Consumer Issues
Topic: Athens and London, what to do and where to stay?
Replies: 27
Views: 840

Re: Phone for Europe trip

Do you need a different SIM card for a different European country? Yes, if you want a number in that country. There are also services such as Telestial than give you a UK and a US number that works almost everywhere in the world (not Japan) on a quad band phone but means people calling you in the c...
by dbr
Fri Oct 24, 2014 10:06 am
 
Forum: Personal Consumer Issues
Topic: Phone for Europe trip
Replies: 20
Views: 835

Re: is optimization(TLH+tax credit) worth cost(time,behavior

If one TLH'd effectively during the big downturn one will be enjoying a small tax windfall every year for a couple of decades. People that didn't avail themselves at the time can still pay attention to whatever opportunities arise. In my own situation I now have a huge carryover capital loss and hug...
by dbr
Fri Oct 24, 2014 9:50 am
 
Forum: Investing - Help with Personal Investments
Topic: is optimization(TLH+tax credit) worth cost(time,behavior)?
Replies: 14
Views: 787

Re: Time For Me to Kick Wellington Through The Goalpost of L

Rats!! I hate it when I have to eat crow... I re-checked and found I'd omitted a couple of transactions from my XIRR calculation and the more-sharp-eyed Bogleheaders (than me) are correct. Wellington has done better... my experiment will have to continue for awhile longer... :oops: Except of course...
by dbr
Fri Oct 24, 2014 9:42 am
 
Forum: Investing - Help with Personal Investments
Topic: Time For Me to Kick Wellington Through The Goalpost of Life?
Replies: 26
Views: 2565

Re: Do all mutual funds have 12b-1 fees?

I am of the view that being ignorant of the fundamentals of your profession while giving advice in a professional capacity is effectively criminal and should be prosecuted with jail time.
by dbr
Fri Oct 24, 2014 9:37 am
 
Forum: Investing - Help with Personal Investments
Topic: Do all mutual funds have 12b-1 fees?
Replies: 23
Views: 1273

Re: Athens and London, what to do and where to stay?

In Athens the obvious sites are the National Archeological Museum and the Acropolis/Parthenon. There are others. Beware that museum schedules are changing and uncertain. The "charming" area in Athens is Plaka, which has some nice smaller hotels, tends to the tourist boutique style, but is ...
by dbr
Fri Oct 24, 2014 9:32 am
 
Forum: Personal Consumer Issues
Topic: Athens and London, what to do and where to stay?
Replies: 27
Views: 840

Re: Bond exposure in my portfolio

There are lots of good reasons in support of keeping bonds to a diversified set of intermediate duration bonds on average. People can make credible arguments that bonds should be kept even to short durations, or use CD's, stable value funds, etc. The problem in these discussions is there is an almos...
by dbr
Fri Oct 24, 2014 9:01 am
 
Forum: Investing - Help with Personal Investments
Topic: Bond exposure in my portfolio
Replies: 7
Views: 565

Re: Calculating return

XIRR gives a result that is theoretically NOT comparable to the return of other portfolios. You are correct that XIRR gives the result not for how a portfolio has behaved but for what outcome a certain investor has gotten investing in a certain portfolio. That can't be compared to the result gotten...
by dbr
Fri Oct 24, 2014 8:51 am
 
Forum: Investing - Help with Personal Investments
Topic: Calculating return
Replies: 19
Views: 1397

Re: Why is VIPSX (TIPS) active?

As was stated a few hundred years ago, "Much ado about nothing". :D Not quite. Because it's an 'active" fund, the admiral threshold it $50k. If it were an index fund it would be $10K, and there could be an ETF share class. I'm sure there are people to whom this would make a differenc...
by dbr
Tue Oct 21, 2014 9:03 am
 
Forum: Investing - Theory, News & General
Topic: Why is VIPSX (TIPS) active?
Replies: 17
Views: 1234

Re: Why not 100% Stocks?

That's why I like the Need, Ability, and Willingness to take risk approach to selecting one's investment portfolio Asset Allocation. You could rationally chose to be 100% in stocks (in your investment portfolio) if you have the the ability to do so (through owning your house and having a pension, f...
by dbr
Mon Oct 20, 2014 2:21 pm
 
Forum: Investing - Theory, News & General
Topic: Why not 100% Stocks?
Replies: 274
Views: 20482

Re: "I've had it" at work - how often

Basically never at that extreme, although I did make a couple of moves from one employer to another, and into retirement. That doesn't mean everything glorious day after day anywhere.
by dbr
Mon Oct 20, 2014 9:14 am
 
Forum: Personal Finance (Not Investing)
Topic: "I've had it" at work - how often
Replies: 151
Views: 12295

Re: Switching Medigap Policies - Confused

I would suggest calling whatever insurance companies you might be considering and ask.
by dbr
Fri Oct 17, 2014 10:14 am
 
Forum: Personal Finance (Not Investing)
Topic: Switching Medigap Policies - Confused
Replies: 4
Views: 305

Re: Dry Powder

Isn't that what bonds and rebalancing were designed for? I don't get it Right, that is where the false analogy comes in. What is both Stocks and Bonds are down? Have we never seen such a scenario? There is possibility that it might happen. Rebalancing happens if one is down more than the other. It ...
by dbr
Thu Oct 16, 2014 2:23 pm
 
Forum: Investing - Theory, News & General
Topic: Dry Powder
Replies: 49
Views: 3519

Re: Using a Lump Sum Pension to buy Real Estate: 2 Options

The scenario of whether or not to take a lump sum pension and/or what to do with the lump sum is not an uncommon question for people. I suspect the idea of treating this as a kind of windfall opportunity to pay taxes and invest in a high risk investment is not the usual one. With Option 2, it might ...
by dbr
Thu Oct 16, 2014 12:21 pm
 
Forum: Personal Finance (Not Investing)
Topic: Using a Lump Sum Pension to buy Real Estate: 2 Options
Replies: 5
Views: 319

Re: Dry Powder

Chan_va wrote:Isn't that what bonds and rebalancing were designed for? I don't get it


Right, that is where the false analogy comes in.
by dbr
Thu Oct 16, 2014 10:29 am
 
Forum: Investing - Theory, News & General
Topic: Dry Powder
Replies: 49
Views: 3519

Re: Dry Powder

Dry powder is a false analogy.
by dbr
Thu Oct 16, 2014 9:57 am
 
Forum: Investing - Theory, News & General
Topic: Dry Powder
Replies: 49
Views: 3519

Re: Bill Sharpe on the 4% SWR rule (he thinks it's silly)

Considering that the objective of the withdrawing investor is to get ahold of whatever money he wants to spend whenever he wants to spend it, no system that simply allocates a certain amount of withdrawal whether of not it matches what you want to do is really to the point, SWR,VPW, or anything else...
by dbr
Thu Oct 16, 2014 9:46 am
 
Forum: Investing - Theory, News & General
Topic: Bill Sharpe on the 4% SWR rule (he thinks it's silly)
Replies: 51
Views: 4618

Re: Does "substantially identical" apply to combined securit

Kevin M wrote:I would do something like this again in a heartbeat. I'm quite confident the IRS is not going to use my puny transactions as a test case.

Kevin


I've commented once or twice in the past that the trick is for someone to figure out how to create sufficient provocation to get a test case into court.
by dbr
Tue Oct 14, 2014 10:28 pm
 
Forum: Investing - Help with Personal Investments
Topic: Does "substantially identical" apply to combined securities?
Replies: 31
Views: 1434

Re: the importance of asset allocation

It may be that asset allocation being important does not necessarily mean that the result is extremely sensitive to the exact asset allocation. Between 25/75, 50/50, and 75/25 it matters a lot.* Between 60/40 and 70/30 there is not much difference.

*Even 0/100 and 100/0 can be contemplated.
by dbr
Tue Oct 14, 2014 3:06 pm
 
Forum: Investing - Theory, News & General
Topic: the importance of asset allocation
Replies: 16
Views: 1476

Re: Why not 100% Stocks?

New poster. New Investor. Long time horizon. Very interesting points thus far: My understanding of AA is effectively a technique to reduce volatility. Over the long term, less volatile portfolios lead to better gains. So a 100% stock allocation based on history is not necessarily any better than a ...
by dbr
Tue Oct 14, 2014 1:14 pm
 
Forum: Investing - Theory, News & General
Topic: Why not 100% Stocks?
Replies: 274
Views: 20482

Re: Bill Sharpe on the 4% SWR rule (he thinks it's silly)

I have some issues with the way the whole SWR issue is walked up to. Let's suppose you have a $1M portfolio split 50/50. Equities @ 2% produce $10K in dividends, which you take to your bank to spend. Since you have sold nothing do you have a WR? Let's further suppose FI produces $25K of dividends o...
by dbr
Tue Oct 14, 2014 9:36 am
 
Forum: Investing - Theory, News & General
Topic: Bill Sharpe on the 4% SWR rule (he thinks it's silly)
Replies: 51
Views: 4618

Re: TIPS & Rick Ferri

This reinvestment thing is not just about TIPS. If a person wants a nominal bond position to increase in value to pace inflation, one would have to be continually adding to the principal as well. The difference is that the nominal bond may not even pay enough to fund the reinvestment and additional ...
by dbr
Tue Oct 14, 2014 9:08 am
 
Forum: Investing - Theory, News & General
Topic: TIPS & Rick Ferri
Replies: 28
Views: 4920

Re: Does "substantially identical" apply to combined securit

Since the IRS does not seem to have a active process to examine and catch wash sales of not actually identical securities, there is not much rolling of the dice to be done. There is going to have to be some rule making to enforce the law and some people being called to account and perhaps taken to c...
by dbr
Tue Oct 14, 2014 9:02 am
 
Forum: Investing - Help with Personal Investments
Topic: Does "substantially identical" apply to combined securities?
Replies: 31
Views: 1434

Re: Calculating dividend yield

Your original yield = ({share dividend at time of purchase}/{price paid for share})*100 Your current yield = ({share dividend today}/{price paid for share})*100 Market yield is = ({share dividend today}/{share price today})*100 Annualized. Distinguishing "your" yield from the "market...
by dbr
Sun Oct 12, 2014 9:29 am
 
Forum: Investing - Theory, News & General
Topic: Calculating dividend yield
Replies: 9
Views: 837

Re: TIPS or VIPSX and why?

... Edit 10/11/14 7:35 AM CDT: added the following: ... I tend to agree that the case for you including TIPS is weak, ... I don't understand why many on this forum seem to think that holding TIPS (individual or in a fund) in one's portfolio requires some special justification. I never see it argued...
by dbr
Sun Oct 12, 2014 9:21 am
 
Forum: Investing - Help with Personal Investments
Topic: TIPS or VIPSX and why?
Replies: 9
Views: 1243

Re: Are Savings Bonds Considered Cash?

You can include the emergency fund as part of your portfolio or not and then after making that decision, decide what your asset allocation should be. It wouldn't be off base to have 70/30 with the emergency fund and 80/20 not counting the emergency fund as part of the portfolio. The reason is that i...
by dbr
Sun Oct 12, 2014 9:17 am
 
Forum: Investing - Help with Personal Investments
Topic: Are Savings Bonds Considered Cash?
Replies: 16
Views: 979

Re: Market corrections and rebalancing band

Here's a question. If Person 1 only contributes new money once a year at tax time. He doesn't automatically rebalance every month to get his target allocation back to where it was initially -- he only rebalances when he hits his rebalancing bands. Then why should Person 2 rebalance when she contrib...
by dbr
Fri Oct 10, 2014 4:22 pm
 
Forum: Investing - Theory, News & General
Topic: Market corrections and rebalancing band
Replies: 71
Views: 4068

Re: Market corrections and rebalancing band

This is contrary to the established wisdom, but I rebalance when I feel like it: I freely let my emotions dictate the decision. I justify this by saying that investing is about avoiding the big mistakes, and rebalancing at the wrong time is at worst a small mistake. I probably rebalance too often, ...
by dbr
Fri Oct 10, 2014 3:51 pm
 
Forum: Investing - Theory, News & General
Topic: Market corrections and rebalancing band
Replies: 71
Views: 4068

Re: TIPS or VIPSX and why?

I would probably be accumulating I bonds over the thirty years to retirement. The first of them would be ready to redeem as soon as you retire. If it is TIPS, I choose funds for the simplicity and convenience. I am not sure with thirty years to retirement that I would be buying TIPS at all, however....
by dbr
Fri Oct 10, 2014 3:45 pm
 
Forum: Investing - Help with Personal Investments
Topic: TIPS or VIPSX and why?
Replies: 9
Views: 1243

Re: Multiple brokerages?

I suggest you have accounts with institutions you trust. If you don't trust a company, don't do business with them. I suggest that one not trust any company completely. Since one cannot avoid doing business with companies they do not trust, what should one do? My answer is avoid doing business with...
by dbr
Fri Oct 10, 2014 3:36 pm
 
Forum: Investing - Help with Personal Investments
Topic: Multiple brokerages?
Replies: 14
Views: 841

Re: Market corrections and rebalancing band

No matter what your starting point or the size of your bands where you start from makes a big difference when you start buying stocks in a market decline if you set your trigger based on the difference from the target rather than the difference from what it was at the start of the market correction...
by dbr
Fri Oct 10, 2014 1:29 pm
 
Forum: Investing - Theory, News & General
Topic: Market corrections and rebalancing band
Replies: 71
Views: 4068

Re: Multiple brokerages?

Here's a response for Vanguard about the infrequent cases of getting an account locked. Although I cannot speak to the situations of these individuals you have read about, I have found in my experience at Vanguard, that this situation usually occurs when there is a security concern on a client's ac...
by dbr
Fri Oct 10, 2014 12:51 pm
 
Forum: Investing - Help with Personal Investments
Topic: Multiple brokerages?
Replies: 14
Views: 841

Re: Is a fall in portfolio value "only on paper"?

The challenge faced by investors in a market is to understand how it can be a good thing to invest in something that fluctuates in value. I don't think that is really the issue. I think the main issue for many investors is "I have more than I am ready to spend today, but I may have less than I...
by dbr
Fri Oct 10, 2014 12:23 pm
 
Forum: Investing - Theory, News & General
Topic: Is a fall in portfolio value "only on paper"?
Replies: 86
Views: 3621

Re: Market corrections and rebalancing band

The recent volatility in the stock market has made me rethink how one should apply rebalancing bands. A common band application is to rebalance only when your AA is off by +/- 5%. So if you have a 50/50 AA and it is in balance it requires a market correction of about ~10% to hit the lower band. But...
by dbr
Fri Oct 10, 2014 12:03 pm
 
Forum: Investing - Theory, News & General
Topic: Market corrections and rebalancing band
Replies: 71
Views: 4068

Re: Multiple brokerages?

The Wiki page does not address the issue that you may loose access to your accounts for some time, and in the mean time you may have a liquidity issue. Personally I have accounts at several places for this very reason. I agree. I would never, ever tie up almost all my assets at one institution whet...
by dbr
Fri Oct 10, 2014 10:06 am
 
Forum: Investing - Help with Personal Investments
Topic: Multiple brokerages?
Replies: 14
Views: 841

Re: Is a fall in portfolio value "only on paper"?

The challenge faced by investors in a market is to understand how it can be a good thing to invest in something that fluctuates in value. The key is that the investor is aiming at a result playing out over time and not at isolated events occurring one day and the next. Trying to invest in things tha...
by dbr
Fri Oct 10, 2014 9:45 am
 
Forum: Investing - Theory, News & General
Topic: Is a fall in portfolio value "only on paper"?
Replies: 86
Views: 3621

Re: Will Interm-Term Inv Grade Bonds Keep With Inflation?

dbr wrote: The two amount to perhaps 3% between TIPS and Investment grade that is explained by not understanding what TIPS yield means and what the extra risk is doing to help investment grade. TIPS may have more risk in duration. Believe it or not, dbr, I do understand the difference between a rea...
by dbr
Wed Oct 08, 2014 5:11 pm
 
Forum: Investing - Theory, News & General
Topic: Will Interm-Term Inv Grade Bonds Keep With Inflation?
Replies: 13
Views: 1266

Re: TLH question

Nobody knows the actual legal answer to what mutual funds are substantially identical to what other mutual funds because the law doesn't say, the IRS has not set any rules, and there are no court cases to inform the issue. Some people would suggest that two different mutual funds from two different ...
by dbr
Wed Oct 08, 2014 9:11 am
 
Forum: Investing - Help with Personal Investments
Topic: TLH question
Replies: 4
Views: 260

Re: Managed Payout

Hi rons, and welcome to the forum! John's suggestion to read past threads is a good one. The managed payout fund doesn't do anything, with respect to payouts, you couldn't do yourself fairly easily, and it invests in a portfolio of assets which is much riskier than most retirees might want. PJW Yes...
by dbr
Wed Oct 08, 2014 9:04 am
 
Forum: Investing - Theory, News & General
Topic: Managed Payout
Replies: 5
Views: 646

Re: Three fund allocation per Vanguard Flagship CFP?

Someone please help me...I am 41 years old and I don't understand why I have to invest in bonds when I plan to retire at 60? Most historical yields of different blend of stock funds yield about 7% when bond funds yield less than that? Why do I need to invest in bonds if I don't need to retire anyti...
by dbr
Wed Oct 08, 2014 8:57 am
 
Forum: Investing - Help with Personal Investments
Topic: [Why do I need to invest in bonds at 41?]
Replies: 3
Views: 126

Re: New B of A visa chip card, no pin needed?

For exhaustive discussion see here:

http://www.flyertalk.com/forum/credit-c ... ature.html

Presently at 7,172 postings.
by dbr
Wed Oct 08, 2014 8:29 am
 
Forum: Personal Finance (Not Investing)
Topic: New B of A visa chip card, no pin needed?
Replies: 35
Views: 2524

Re: Vanguard > Fidelity 401k & Should I Buy New Company's St

You should not hold a significant position in any single company stock and especially not stock in your employer. Actually buying your employer's stock when you have a choice is not advised. A possible exception to this is an ESOP plan that gives you a major discount and a way to get rid of the stoc...
by dbr
Tue Oct 07, 2014 9:29 pm
 
Forum: Investing - Help with Personal Investments
Topic: Vanguard > Fidelity 401k & Should I Buy New Company's Stock?
Replies: 5
Views: 416

Re: Will Interm-Term Inv Grade Bonds Keep With Inflation?

Steadfast wrote: If you are concerned about your bonds keeping pace with inflation, allocate an appropriate portion of them to TIPS in addition to nominal bonds. I have this concern and so I allocate 33% of bonds to TIPS in my IRA. Good point, Steadfast. The only problem is that at present Vanguard...
by dbr
Tue Oct 07, 2014 9:24 pm
 
Forum: Investing - Theory, News & General
Topic: Will Interm-Term Inv Grade Bonds Keep With Inflation?
Replies: 13
Views: 1266
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