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Re: ? Best simple reference to dissuade a day trader

Everyone I know who has engaged in day trading has been so convinced that they are smart enough and have a system that is good enough that they are immune to suggestions otherwise.
by dbr
Fri Aug 01, 2014 2:07 pm
 
Forum: Investing - Theory, News & General
Topic: ? Best simple reference to dissuade a day trader
Replies: 15
Views: 905

Re: Social Security - Receive Any Letters Approaching Age 70

I'm not there yet but I've research the subject extensively. My wife and I are waiting until we're 70 to collect, however, when we both reach age 66 one of us will file and suspend, a nice little loophole that the folks at SS won't tell you about and rarely understand if you bring it up. Actually w...
by dbr
Fri Aug 01, 2014 11:35 am
 
Forum: Personal Finance (Not Investing)
Topic: Social Security - Receive Any Letters Approaching Age 70?
Replies: 22
Views: 1864

Re: my idea of retirement

Maxing a Roth means saving $5500 a year, is that right? You should look at some retirement planners to see if that rate of savings is enough to support the income you might want in retirement. SS and any possible pensions need to be accounted for. What exactly you invest in isn't important compared ...
by dbr
Fri Aug 01, 2014 11:02 am
 
Forum: Investing - Help with Personal Investments
Topic: my idea of retirement
Replies: 8
Views: 1165

Re: All money in TIPs??

Bob, would you not also mention that not the entirety of the assets go to annuities and TIPS? I think there should always be room for some equity investing. Or, perhaps this is an indication the retiree does not have adequate resources to support the planned retirement. We are speaking theoretically...
by dbr
Fri Aug 01, 2014 10:41 am
 
Forum: Investing - Help with Personal Investments
Topic: All money in TIPs??
Replies: 14
Views: 862

Re: All money in TIPs??

On paper you would be good candidate for a SPIA. I may not have explained my situation well. The reason that I am thinking about a TIPs ladder because it seems to me to be a very adequate retirement strategy. There are people like Zvi Bodie's (http://www.zvibodie.com) from Boston U that feel strong...
by dbr
Fri Aug 01, 2014 10:07 am
 
Forum: Investing - Help with Personal Investments
Topic: All money in TIPs??
Replies: 14
Views: 862

Re: Help with Bonds

My question - how do you judge a good bond fund? I was talking with friend today who is an advisor with UBS and he was telling me to stick with corporate short term bonds and stay away from gov bond? Of course I plan to buy vanguard indexed bonds but is his advice true? He says he is more weary of ...
by dbr
Fri Aug 01, 2014 9:40 am
 
Forum: Investing - Help with Personal Investments
Topic: Help with Bonds
Replies: 7
Views: 263

Re: Retiree Income Investment Question

Is there an easy way to convert montly/quarterly income based on current yield? I haven't been able to find a calculator that will do it for you on vanguard. I is actually the other way around. The distribution is given and that is converted to a yield by dividing by the price. Go back to that web ...
by dbr
Thu Jul 31, 2014 4:44 pm
 
Forum: Investing - Help with Personal Investments
Topic: Retiree Income Investment Question
Replies: 11
Views: 834

Re: Retiree Income Investment Question

Problem I have with the anuity is that it can't be left to the heirs and that is something they want. Which of the Vanguard funds pay a montly dividend? An SPIA might not be a good fit in that case, although one should keep in mind that depending on age and prevailing interest rates desired income ...
by dbr
Thu Jul 31, 2014 3:19 pm
 
Forum: Investing - Help with Personal Investments
Topic: Retiree Income Investment Question
Replies: 11
Views: 834

Re: 4 Simple Rules for Retirement Saving

I don't really get why retirement calculators always want to use a percentage of pre-retirement INCOME as the target for retirement income. Shouldn't they use a percentage of pre-retirement EXPENSES? I understand that if the two are roughly equal then it might make sense, but when I do my retiremen...
by dbr
Thu Jul 31, 2014 3:07 pm
 
Forum: Investing - Theory, News & General
Topic: 4 Simple Rules for Retirement Saving
Replies: 11
Views: 1649

Re: Retiree Income Investment Question

Thanks for the input. They are comfortable with stocks. They are just looking for the extra income to do more. They already have quite a bit of money tied up in a bond type investment. As far as the Target Retirement fund goes, how do you structure that it they are already retired with no debt at a...
by dbr
Thu Jul 31, 2014 3:04 pm
 
Forum: Investing - Help with Personal Investments
Topic: Retiree Income Investment Question
Replies: 11
Views: 834

Re: Misleading information on tax loss harvesting wiki artic

What determines whether its a wash sale? I use Fidelity, which automatically generates tax statements for me at the end of the year, recording my total capital gain or loss. Will Fidelity calculate the correct number based on wash sale criteria, or is that something I have to do manually to modify ...
by dbr
Thu Jul 31, 2014 11:50 am
 
Forum: Investing - Theory, News & General
Topic: Misleading information on tax loss harvesting wiki article
Replies: 34
Views: 1329

Re: Misleading information on tax loss harvesting wiki artic

So if I buy a stock today, and hold it until my death, give it to my children, they can then immediately sell it and pay zero capital gains tax provided it's less than the $5m estate tax deductible? I know were being a little picky about words here, but you don't want to say give; you want to say p...
by dbr
Thu Jul 31, 2014 10:39 am
 
Forum: Investing - Theory, News & General
Topic: Misleading information on tax loss harvesting wiki article
Replies: 34
Views: 1329

Re: What percentage of my portflio should be in cash?

Very possibly the amount that "should" be in cash is zero. In reality most people have checking accounts with money in them, accounts where SS and pension payments are deposited (maybe those same checking accounts), sweep accounts or MM funds into which dividends are paid or which hold mon...
by dbr
Wed Jul 30, 2014 2:43 pm
 
Forum: Investing - Help with Personal Investments
Topic: What percentage of my portflio should be in cash?
Replies: 10
Views: 886

Re: Misleading information on tax loss harvesting wiki artic

http://www.bogleheads.org/wiki/Tax_loss_harvesting "First, tax losses represent an interest-free loan that defers capital gains taxes you would otherwise owe into the distant future, and can even eliminate them entirely when you die " My understanding of tax law is that statement is highl...
by dbr
Wed Jul 30, 2014 2:07 pm
 
Forum: Investing - Theory, News & General
Topic: Misleading information on tax loss harvesting wiki article
Replies: 34
Views: 1329

Re: Tax strategies with Employee stock option execution

There are a number of papers in the Altruist Reading Room under Diversifying Concentrated Positions that may be helpful. Some are old and a few of the links may be broken but you can Google for the articles. Be sure to be aware of tax code changes that affect some strategies: http://www.altruistfa.c...
by dbr
Wed Jul 30, 2014 9:57 am
 
Forum: Investing - Help with Personal Investments
Topic: Tax strategies with Employee stock option execution
Replies: 4
Views: 290

Re: Help me save my parents from Merrill Lynch

I must be missing something. Are not self-directed accounts (no matter the brokerage firm), just that: self directed, with no adviser? Thus minimal fees? Yes, if you know what you are doing you can invest cost effectively at any broker. It is just a matter of resisting sales pitches, being aware of...
by dbr
Wed Jul 30, 2014 9:45 am
 
Forum: Investing - Help with Personal Investments
Topic: Help me save my parents from Merrill Lynch
Replies: 54
Views: 5583

Re: Is rebalancing worth having bonds?

Adding bonds to a stock allocation will not result in greater expected return than all stocks whatever rebalancing is done.
by dbr
Tue Jul 29, 2014 4:00 pm
 
Forum: Investing - Help with Personal Investments
Topic: Is rebalancing worth having bonds?
Replies: 26
Views: 1827

Re: RETIREMENT ALLOCATIONS

I would echo the comment that this is about income streams altogether (comment about SS) and not just how to allocate assets. At 3% withdrawal rate the allocation may not be very important if it is not extreme.
by dbr
Tue Jul 29, 2014 11:31 am
 
Forum: Investing - Help with Personal Investments
Topic: Retirement Allocations
Replies: 15
Views: 1154

Re: Should retirement investors own small/value stocks at al

This is a lot of the reason that I did away with my S/D portfolio with tilts a while ago. When you tilt sometimes it takes a while, if ever for the advantage to show up. I'm not getting any younger. Now I am more simplified, but still tilt a bit towards REITs. Can't seem to let that go. :happy It c...
by dbr
Tue Jul 29, 2014 11:29 am
 
Forum: Investing - Theory, News & General
Topic: Should retirement investors own small/value stocks at all?
Replies: 36
Views: 2628

Re: Nisiprius on "bonds."

Bogleheads: I just finished reading the Nisiprius post on bonds (it's the 4th Reply). His post is a gem. Nisiprius tells us all we need to know about bonds. In my opinion, ANY low-cost, good quality, diversified, short- or intermediate-term bond fund provides a portfolio with safety and income. Bes...
by dbr
Tue Jul 29, 2014 9:21 am
 
Forum: Investing - Help with Personal Investments
Topic: Bonds!!??
Replies: 56
Views: 10471

Re: parking money

This may not be very original, but there is the story about the astronaut sent on the first mission to neighboring star. The journey out and back was to take 200 years, so our astronaut leaves behind a $10,000 investment with his broker, planning on being fabulously rich after 200 years of compound ...
by dbr
Mon Jul 28, 2014 10:09 pm
 
Forum: Investing - Theory, News & General
Topic: parking money
Replies: 7
Views: 1341

Re: Rules of thumb that shouldn't be

I grew up on Minitab and knew some of the people who developed it.
by dbr
Mon Jul 28, 2014 7:52 pm
 
Forum: Investing - Theory, News & General
Topic: Rules of thumb that shouldn't be
Replies: 39
Views: 4337

Re: Old people and financial advisors - a family tale

I don't explain the buying, but the selling and the drop in value could be because the uncle is redeeming assets for income to live on, possibly at a reckless rate. The adviser has no say about requests for cash from the investments. A person could easily not appreciate how quickly a portfolio can b...
by dbr
Mon Jul 28, 2014 7:50 pm
 
Forum: Investing - Help with Personal Investments
Topic: Old people and financial advisors - a family tale
Replies: 75
Views: 5528

Re: parking money

thx1138 wrote:I think he meant that while preserving capital in nominal terms is achievable and easy that when you do that you aren't actually preserving capital at all.


Yes, I meant that preserving capital in nominal terms is a twisted up contradiction of meanings that toys with the mind.
by dbr
Mon Jul 28, 2014 7:45 pm
 
Forum: Investing - Theory, News & General
Topic: parking money
Replies: 7
Views: 1341

Re: Nanny/Household Employee Payroll Company

For a period of time I was the manager, bookkeeper, tax accountant, and legal officer for a couple (plus occasionally other) home health aides, employed by me. In the end I had become quite knowledgeable of all aspects of Federal and state employment, insurance, liability, and tax law. I never in th...
by dbr
Mon Jul 28, 2014 7:41 pm
 
Forum: Personal Finance (Not Investing)
Topic: Nanny/Household Employee Payroll Company
Replies: 8
Views: 572

Re: Annuities and asset allocation

It really doesn't matter how you calculate your asset allocation; you can include the PV of annuities or not include them. You can include the value of your house or not include it. The only correct method is whatever produces the balance that you are comfortable with between volatility and low ret...
by dbr
Mon Jul 28, 2014 7:30 pm
 
Forum: Investing - Help with Personal Investments
Topic: Annuities and asset allocation
Replies: 32
Views: 1478

Re: How well integrated is a VBS account on the Vanguard pag

When you write there are two mutual fund "accounts", do you mean you have one Vanguard account with two different mutual funds in it? Or is each actually a separate account with different account numbers. I have seen investment companies, banks, etc. call an individual fund, savings accou...
by dbr
Mon Jul 28, 2014 3:20 pm
 
Forum: Personal Finance (Not Investing)
Topic: How well integrated is a VBS account on the Vanguard page?
Replies: 11
Views: 482

Re: parking money

There probably is no investment that preserves capital in real dollars and does not fluctuate in value. I bonds are the only thing I can think of, and purchase limits make these of limited use in many cases. Short term TIPS or even short bonds may be an approximation assuming the dividend payouts ar...
by dbr
Mon Jul 28, 2014 2:48 pm
 
Forum: Investing - Theory, News & General
Topic: parking money
Replies: 7
Views: 1341

Re: Annuities and asset allocation

Why not call an income stream an income stream? You have already decided to do that with SS. SS is an annuity. Is the problem that psychologically SS is "free money" (above and beyond what you've saved) and the annuity purchases mean you have to give up actual wealth? Your asset allocation...
by dbr
Mon Jul 28, 2014 2:42 pm
 
Forum: Investing - Help with Personal Investments
Topic: Annuities and asset allocation
Replies: 32
Views: 1478

Re: Rebalancing 401k in a Sane Way

You are starting with $100K and saving $35K/year, presumably increasing with inflation and career success, for the next twenty years. For retirement in mid 40's to be a realistic goal you are going to have to specify a level of retirement spending that you will find acceptable and see if your saving...
by dbr
Mon Jul 28, 2014 12:00 pm
 
Forum: Investing - Help with Personal Investments
Topic: Rebalancing 401k in a Sane Way
Replies: 6
Views: 636

Re: How to complement VWENX to get full diversification?

Funds that are composed of allocations to other funds do not double dip on expenses, at least not at Vanguard. I think the one cost inefficiency is that they do not invest in Admiral share classes that you could buy if you purchased the funds separately. It should be completely straightforward for y...
by dbr
Mon Jul 28, 2014 11:29 am
 
Forum: Investing - Help with Personal Investments
Topic: How to complement VWENX to get full diversification?
Replies: 9
Views: 1043

Re: Do any boggleheads invest in individual companies?

I did buy Ford Motor Co. a few years ago when it was at it's lowest. I live in Michigan, my father worked for Ford and I had faith that the company would turn around with their products and management. I guess that I also wanted to have a stake in the auto industry turn-around effort. It worked out...
by dbr
Mon Jul 28, 2014 10:15 am
 
Forum: Investing - Theory, News & General
Topic: Do any boggleheads invest in individual companies?
Replies: 95
Views: 5372

Re: Do any boggleheads invest in individual companies?

The "bad" about holding individual companies is that the return will be more variable without a compensating increase in the average return compared to holding many stocks of the same kind. How much that bothers you is up to you. It could be helpful to study the history of "really goo...
by dbr
Mon Jul 28, 2014 10:15 am
 
Forum: Investing - Theory, News & General
Topic: Do any boggleheads invest in individual companies?
Replies: 95
Views: 5372

Re: Social Security - Receive Any Letters Approaching Age 70

They don't send you a notice when you turn 62, nor at FRA, and I have never heard of anyone getting a notice at 70. They do send an annual statement, so if one is getting that and one does not think about filing, then I don't know . . .
by dbr
Sun Jul 27, 2014 5:15 pm
 
Forum: Personal Finance (Not Investing)
Topic: Social Security - Receive Any Letters Approaching Age 70?
Replies: 22
Views: 1864

Re: A Scenario and 3 questions

I'm gonna have to write that most of what you wrote doesn't make any sense to me. Short-term bonds in taxable to fund pre-SS retirement? No. Plain and simple: No. Sure. If it were me, I wouldn't do anything special at all except just withdraw and spend from one portfolio, some of it in taxable and ...
by dbr
Sun Jul 27, 2014 2:53 pm
 
Forum: Investing - Help with Personal Investments
Topic: A Scenario and 3 questions
Replies: 7
Views: 526

Re: A Scenario and 3 questions

As dbr noted, the first, key question is the size of your expenses. Are you certain you have enough? From the way you have worded your question, I'm guessing the answer to that question is yes. I guess I never considered there would be an issue with a high 6 figure portfolio that has 10-12 years to...
by dbr
Sun Jul 27, 2014 2:48 pm
 
Forum: Investing - Help with Personal Investments
Topic: A Scenario and 3 questions
Replies: 7
Views: 526

Re: One of the simplest rational reasons why some should til

Right, this does not affect the expected return, but the standard deviations of returns of individual stocks is much higher than that of a collection of stocks. In that sense it does cause the price to move; indeed it affects the very definition of the price moving. This is the best and most basic ...
by dbr
Sun Jul 27, 2014 2:44 pm
 
Forum: Investing - Theory, News & General
Topic: One of the simplest rational reasons why some should tilt
Replies: 43
Views: 3911

Re: bond duration and interest rate risk

It is possible that Wiki section should be edited to removed the impression that the word" useful" means "useful for how to manage investments" as distinct from "useful for understanding what duration means." This is also an example of citing "sound-bite" inv...
by dbr
Sun Jul 27, 2014 2:01 pm
 
Forum: Investing - Theory, News & General
Topic: bond duration and interest rate risk
Replies: 23
Views: 1771

Re: bond duration and interest rate risk

So to summarize, if interest rates stay same: long term wins by 0.8% . If interest rates spike, intermediate may or may not win. Looking at historical performance chart, this appears to be the case( long term fund is ahead most of the time, except when they both dip, it dips more). So if I know tha...
by dbr
Sun Jul 27, 2014 1:17 pm
 
Forum: Investing - Theory, News & General
Topic: bond duration and interest rate risk
Replies: 23
Views: 1771

Re: bond duration and interest rate risk

2. Bond funds trade often and don't hold the bond till maturity. In addition, I don't see how holding a bond beyond duration matters. Duration is not time to maturity. It's a measure of interest rate risk. For this fund though, it would be good to understand exactly how that number was produced, if...
by dbr
Sun Jul 27, 2014 1:04 pm
 
Forum: Investing - Theory, News & General
Topic: bond duration and interest rate risk
Replies: 23
Views: 1771

Re: bond duration and interest rate risk

That duration number for VWLTX doesn't mean what it says. The maturity of the bonds in that fund is 16 years and would not be recommended.

Do I remember a thread where durations in long term muni funds were affected by call provisions or something?
by dbr
Sun Jul 27, 2014 12:47 pm
 
Forum: Investing - Theory, News & General
Topic: bond duration and interest rate risk
Replies: 23
Views: 1771

Re: Old people and financial advisors - a family tale

There is indeed the maxim to not ascribe to malevolence that which is explained by stupidity. However, when it comes to taking care of someone else's interests for a consideration for oneself, it is absolutely an ethical obligation to not be stupid. That is especially so in a case where one advertis...
by dbr
Sun Jul 27, 2014 12:41 pm
 
Forum: Investing - Help with Personal Investments
Topic: Old people and financial advisors - a family tale
Replies: 75
Views: 5528

Re: Old people and financial advisors - a family tale

So true. I have a relative with a Ph.D. in a STEM field. He tutored me all the way through differential equations. He has patents. A smart guy. Yet he has Merrill Lynch or Ameriprise or Morgan Stanley (I can't remember which) managing his money. His AUM fee is around 1% and he's invested in the typ...
by dbr
Sun Jul 27, 2014 11:56 am
 
Forum: Investing - Help with Personal Investments
Topic: Old people and financial advisors - a family tale
Replies: 75
Views: 5528

Re: A Scenario and 3 questions

Here is the scenario. Individual is looking to retire in 1-3 years. Within 10-12 years of retirement they plan to start drawing SS and a pension both indexed to inflation which will cover expenses at their current level of spending. They currently have high 6 figures in their tax deferred accounts ...
by dbr
Sun Jul 27, 2014 11:45 am
 
Forum: Investing - Help with Personal Investments
Topic: A Scenario and 3 questions
Replies: 7
Views: 526

Re: Help me save my parents from Merrill Lynch

Thanks to all for the thoughtful responses. I should clarify that my parents have indeed asked me for my input. I've also given them copies of several Boglehead-friendly books, and they've said they find the philosophy attractive. That's why I'm so confused they ended up at Merrill Lynch. But yes, ...
by dbr
Sun Jul 27, 2014 11:07 am
 
Forum: Investing - Help with Personal Investments
Topic: Help me save my parents from Merrill Lynch
Replies: 54
Views: 5583

Re: Teacher looking for portfolio advice

Teacher88 wrote:Sorry, somehow this got posted before I was done filling out the entire post.


I see that.

You did supply better background on the question of risk of a 100% stock allocation, but I would still question it. I also really would suggest going through the Wiki, but you might have already done so.
by dbr
Sun Jul 27, 2014 10:47 am
 
Forum: Investing - Help with Personal Investments
Topic: Teacher looking for portfolio advice
Replies: 13
Views: 567

Re: Sshwab vs. Vanguard for index funds

Where you invest, meaning where your accounts are, and what you invest in, meaning what company's mutual funds, ETF's, other kinds of assets, are two separate questions. I suspect a good answer is that if you are going to invest in mutual funds from Vanguard, then you should certainly invest at Vang...
by dbr
Sun Jul 27, 2014 10:37 am
 
Forum: Investing - Help with Personal Investments
Topic: Sshwab vs. Vanguard for index funds
Replies: 15
Views: 1621

Re: Old people and financial advisors - a family tale

well I am not sure if this is just related to age. Last week I was talking to guy in probably early 50s..very sharp in what he does professionally, articulate and has a clarity that I could relate to. Guess what..he has been investing with a friend, knows that the guy is making money, heard of othe...
by dbr
Sun Jul 27, 2014 10:29 am
 
Forum: Investing - Help with Personal Investments
Topic: Old people and financial advisors - a family tale
Replies: 75
Views: 5528

Re: Larry: 20 Dollar Bills and Factor Persistence

OP, SV is not clearly a risk. It may be a proxy for some underlying risk, such as distress, but is not itself a risk. Therefore, the answers to both questions don't have to be the same. They might be or they might not be. The efficient market claim is not that risk and return are commensurate. If m...
by dbr
Sun Jul 27, 2014 10:26 am
 
Forum: Investing - Theory, News & General
Topic: Larry: 20 Dollar Bills and Factor Persistence
Replies: 113
Views: 9449

Re: Teacher looking for portfolio advice

It is unlikely that a person aged 48 with almost as much debt as assets would want to be 100% stock.

For a more complete perspective I would start here and work through the materials on financial planning and investing in the Wiki:

http://www.bogleheads.org/wiki/Getting_started
by dbr
Sun Jul 27, 2014 10:07 am
 
Forum: Investing - Help with Personal Investments
Topic: Teacher looking for portfolio advice
Replies: 13
Views: 567
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