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

Thanks Taylor! The reader comments insulting Bill Bernstein make me smile. I can remember thinking that I was as smart as some of the readers do. I don't know more, I've just got a better understanding of how little I actually know. My father told me years ago that when I had enough saved to quit. I...
by dharrythomas
Tue Jan 20, 2015 8:44 pm
 
Forum: Investing - Theory, News & General
Topic: "When you've won the game, stop playing"
Replies: 83
Views: 8300

Re: Please rate/advise my 40+yr investment portfolio

Ben Graham recommended in "The Intelligent Investor", that the default asset allocation should be 50/50 with all investors somewhere between 75/25 and 25/75.

You pay your money, you take your chances.

Good Luck.
by dharrythomas
Sat Jan 17, 2015 9:21 am
 
Forum: Investing - Help with Personal Investments
Topic: Rate/advise my 40+ year stock portfolio
Replies: 9
Views: 566

Re: Does it matter which Roth to fund?

It depends. 1) what are you going to use the account for? The answer might be different depending on whether this will contribute to your retirement expenses or whether you want to leave it to heirs. 2) health/life expectancy of the two partners. If you've named each other as beneficiaries of the tw...
by dharrythomas
Sun Jan 11, 2015 8:26 pm
 
Forum: Investing - Help with Personal Investments
Topic: Does it matter which Roth to fund?
Replies: 1
Views: 402

Re: Alternatives to Target or LifeStrategy in Taxable Accoun

Either A or B is a reasonable option, you'll need to do different things with the LifeStrategy funds. I think C may put too much of the bond portion in municipal bonds.
by dharrythomas
Sun Jan 11, 2015 2:31 pm
 
Forum: Investing - Help with Personal Investments
Topic: Alternatives to Target or LifeStrategy in Taxable Accounts?
Replies: 13
Views: 1153

Re: Changing asset allocation

Ben Graham thought the default allocation should be 50/50 and that everyone should be somewhere between 75/25 and 25/75.

One old saying "bulls make money, bears make money, pigs get slaughtered"

Good luck with whatever you decide.

Harry
by dharrythomas
Sun Jan 11, 2015 2:07 pm
 
Forum: Investing - Help with Personal Investments
Topic: Changing asset allocation
Replies: 13
Views: 709

Re: Medallion Signature Guarantee? T.Rowe Price to Vanguard

Check with T Rowe Price. I've dealt with several companies on various accounts and had to get a medallion guarantee once. It will be a company policy.
by dharrythomas
Sun Jan 11, 2015 1:59 pm
 
Forum: Personal Finance (Not Investing)
Topic: Medallion Signature Guarantee? T.Rowe Price to Vanguard Xfer
Replies: 8
Views: 890

Re: Performance of fundamental indexes

I don't use it but, there is nothing wrong with fundamental indexing and it is a low expense reasonable option to get a value tilt. You don't get the same value factor load you would with a value fund but you'll be ahead when growth beats value. It is more expensive than what many of us do here whic...
by dharrythomas
Sat Jan 10, 2015 8:40 pm
 
Forum: Investing - Theory, News & General
Topic: Performance of fundamental indexes
Replies: 21
Views: 1806

Re: Young dentist, No debt, Investing strategy

You are far to young with too many unknowns before you to take an inheritance into consideration.

Spend what you need to, save what you can, and don't forget to enjoy life as you go.

Good luck.
by dharrythomas
Sat Jan 10, 2015 8:23 pm
 
Forum: Investing - Help with Personal Investments
Topic: Young dentist, No debt, Investing strategy
Replies: 10
Views: 1153

Re: Do you use lifestrategy/ asset allocation funds?

We've got 5 Tax deferred accounts. TSP in LifeCycle fund, 2xIRA in Target Retirement, 1xRoth in Wellington. Part of the other Roth is in Balanced Index.

I believe in balanced funds. I'd be better off if I'd kept the other Roth completely in balanced fund also.
by dharrythomas
Fri Jan 09, 2015 7:00 pm
 
Forum: Investing - Theory, News & General
Topic: Do you use lifestrategy/ asset allocation funds?
Replies: 36
Views: 3064

Re: Poll: Gain of total portfolio value from investing

I don't think the question is worded exactly right and I don't know the answer as i haven't tracked that close for all investments and withdrawals since 1984 when I made my first IRA contribution. If I could answer the question, it wouldn't tell you anything other than that that we've been investing...
by dharrythomas
Sun Dec 28, 2014 8:07 pm
 
Forum: Investing - Theory, News & General
Topic: Poll: Gain of total portfolio value from investing
Replies: 37
Views: 3296

Re: Doctor with multiple retirement plans

I use mostly the bond index funds. Either Vanguard or Fidelity are OK. I prefer to put bonds in the Traditional accounts, though we've got some in our Roth accounts also. I don't currently own any municipal bonds, but may soon as I have to decide how to handle an inheritance and I'm considering dump...
by dharrythomas
Sun Dec 21, 2014 8:38 pm
 
Forum: Investing - Help with Personal Investments
Topic: Doctor with multiple retirement plans
Replies: 13
Views: 2107

Re: Doctor with multiple retirement plans

Laura's suggestion is fine. Other than adding some bonds and getting out of debt, I have nothing to add. With $800K invested and $88K a year in annual savings at age 32, you just need to stay the course. Rough numbers, you've got $1M at 35, $3M at 45, $7M at 55, and $15M at 65 if you just keep doing...
by dharrythomas
Sun Dec 21, 2014 2:57 pm
 
Forum: Investing - Help with Personal Investments
Topic: Doctor with multiple retirement plans
Replies: 13
Views: 2107

Re: Trust set up for older sibling

I don't know anything about you wife's family dynamics, what her parents asked/expected her, what kind of obligation she feels to take care of her sibling, soI won't comment on whether she should set up a trust or not. I would caution you to be very careful about trying to talk her out of it. It may...
by dharrythomas
Sun Dec 21, 2014 7:34 am
 
Forum: Investing - Help with Personal Investments
Topic: Trust set up for older sibling
Replies: 14
Views: 2052

Re: Does Mr. Bogle ALWAYS suggest Bonds?

I don't know for sure about Mr Bogle, but Benjamin Graham said that even enterprising investors needed a minimum of 25% bonds.
by dharrythomas
Wed Dec 10, 2014 8:27 pm
 
Forum: Investing - Theory, News & General
Topic: Does Mr. Bogle ALWAYS suggest Bonds?
Replies: 8
Views: 1283

Re: 'Might Vanguard Founder Jack Bogle Be Wrong for a Change

Jack Bogle is right on the facts, it's the application where people disagree. As I think I understand it, the biggest difference in the returns of US and International is currency fluctuation. (That's why for years the only international fund offered by Tweedy Browne was hedged) Depending on timefra...
by dharrythomas
Wed Dec 10, 2014 8:22 pm
 
Forum: Investing - Theory, News & General
Topic: 'Might Jack Bogle Be Wrong for a Change?' [Int'l holdings]
Replies: 49
Views: 4324

Taylor--thank you!!

Thank you for what you've done here for those of us you've helped learn about investing. More particularly, thank you for where you were and what you were doing 70 years ago this month. I truly appreciate your sacrifice and the sacrifice of of those that served with you in every theater. God Bless Y...
by dharrythomas
Tue Dec 09, 2014 9:18 pm
 
Forum: Investing - Theory, News & General
Topic: Taylor--thank you!!
Replies: 9
Views: 1157

Re: What is your opinion about "tilting?"

I tilt to small, value, and REIT. I think the evidence supports it over the long run. Whether it works out for me depends on my start and end dates, but unlike someone cherry picking the data, I Can't use hindsight. It may work or it may not. Any of us could be in the cohort with start/end dates whe...
by dharrythomas
Tue Dec 09, 2014 8:41 pm
 
Forum: Investing - Theory, News & General
Topic: What is your opinion about "tilting?"
Replies: 116
Views: 9366

Re: Convert 401k Target-Date Funds to Lifetime Income

Even where available, people aren't using SPIAs. There appear to be two big issues: 1) people don't want to part with the lump sum it took a lifetime to put together. 2) the current payouts are very low and almost ridiculous if you need an inflation adjustment and survivor benefits. Maybe a good ide...
by dharrythomas
Sun Dec 07, 2014 3:41 pm
 
Forum: Investing - Theory, News & General
Topic: Convert 401k Target-Date Funds to Lifetime Income
Replies: 2
Views: 489

Re: Equal Weight portfolio

Sounds like "The Ultimate Buy and Hold Portfolio". It's another tilting strategy.
by dharrythomas
Mon Nov 24, 2014 8:44 pm
 
Forum: Investing - Theory, News & General
Topic: Equal Weight portfolio
Replies: 19
Views: 2599

Re: Roll Vanguard Roth into TSP Roth

I'll provide the IRA side of the argument.The advantages of a Roth IRA over a Roth TSP account: ( Some may consider a few of the IRA advantages not really valuable) (1) no RMD on the Roth IRA (2) cannot manage traditional and Roth TSP subaccounts separately (3) I Fund is not as diversified as Total ...
by dharrythomas
Mon Nov 10, 2014 11:01 pm
 
Forum: Investing - Help with Personal Investments
Topic: Roll Vanguard Roth into TSP Roth
Replies: 10
Views: 687

Re: Equal weight or volume weight between world regions

You'll get a number of different allocation recommendations, though not many here will recommend that you go lower than market weight for your home country. The real answer is that no one knows and it depends on your personal preferences. What we do know with relative certainty is that correlations ...
by dharrythomas
Sun Nov 02, 2014 3:00 pm
 
Forum: Investing - Theory, News & General
Topic: Equal weight vs. capitalization weight between world regions
Replies: 18
Views: 1377

EMH is close enough

http://www.bloombergview.com/articles/2014-10-10/the-market-outsmarts-everyone

the financial value of information gets used up


EMH is wrong in details but close enough to be useful in the "real world"!

Good Luck.

Harry
by dharrythomas
Sun Oct 12, 2014 1:00 pm
 
Forum: Investing - Theory, News & General
Topic: EMH is close enough
Replies: 1
Views: 326

Re: Best book on Finance I ever read, Ben Graham's Intellige

Stemikger, The Intelligent Investor is not too technical for you. It is the "mass market" version of the Graham and Dodd textbook "Security Analysis". The second book might be more technical and have more math than you want to try. You would have no trouble with the first. It is ...
by dharrythomas
Sun Oct 05, 2014 2:09 pm
 
Forum: Investing - Theory, News & General
Topic: Best book on Finance I ever read, Ben Graham's Intelligent I
Replies: 35
Views: 4809

Re: TSP [CNN Money: Fed Workers... low cost retirement plans

The problem with having Roth money in the TSP is that you cannot manage it separately and all withdrawals are proportional to account balance. I may leave the traditional balance in the TSP but my one partial withdrawal will be to move the Roth balance immediately!
by dharrythomas
Sat Oct 04, 2014 4:40 pm
 
Forum: Investing - Theory, News & General
Topic: TSP [CNN Money: Fed Workers... low cost retirement plans]
Replies: 25
Views: 2806

Re: Buffett Has 100% Equities in his Pensions Funds

1. Bonds vs stocks is a long term losing proposition, the only time in my lifetime that you could expect bonds to beat stocks was the Volker years with 15% plus tax free bond returns! 2. Pensions are different than individuals because of the law of large numbers. They can project expenses much bette...
by dharrythomas
Sat Oct 04, 2014 1:57 pm
 
Forum: Investing - Theory, News & General
Topic: Buffett Has 100% Equities in his Pensions Funds
Replies: 39
Views: 2877

Re: Total world stock index

We use Total World as our only taxable fund. The expense ratio has been dropping consistently as the fund grows. Projecting the current differences in expense ratio forward is misleading and overstates the long term impact. I expect the difference to drop to no more than .05 in about 2.5 years. It m...
by dharrythomas
Fri Oct 03, 2014 8:41 pm
 
Forum: Investing - Help with Personal Investments
Topic: Total world stock index
Replies: 19
Views: 2742

Re: Surprise Benefit of Lower Expenses

You got a "raise" because your expenses went down. It was 5% because of the ratio of the decrease in expenses to the yield. My guess is that your yearly yield increased from 2% to 2.1%!
by dharrythomas
Thu Oct 02, 2014 5:32 pm
 
Forum: Investing - Theory, News & General
Topic: Surprise Benefit of Lower Expenses
Replies: 6
Views: 1672

Re: Let's hear your Dave Ramsey success stories

Dave Ramsey is important because he is the one voice taking about the Risk involved with Debt. We're bombarded with lessons on managing debt. You can either live below your means, save, invest, and get on the right side of compounding or you can go into debt, juggle payments, and be on the wrong sid...
by dharrythomas
Wed Sep 24, 2014 9:31 pm
 
Forum: Investing - Theory, News & General
Topic: Let's hear your Dave Ramsey success stories
Replies: 32
Views: 4544

Re: Individual Stocks

We own stock in 2 community bank start ups. (We'd have spent the funds if we hadn't bought the bank stock) Don't have a listed market value but the dividends are pretty good and increasing. My estimate is less than10% of portfolio (that we're still adding to) and that doesn't count pension income th...
by dharrythomas
Sat Sep 20, 2014 8:18 pm
 
Forum: Investing - Theory, News & General
Topic: Individual Stocks
Replies: 46
Views: 3602

Re: If you won the lottery, does boglehead thinking still wo

The boglehead method would work. Some might need an advisor to keep them from doing something stupid. Many lottery winners are bankrupt a few years after winning. For me this is all theory since I view the lottery as a tax on people who are bad at math, even worse since in education lotteries they t...
by dharrythomas
Sun Sep 07, 2014 7:12 pm
 
Forum: Investing - Theory, News & General
Topic: If you won the lottery, does boglehead thinking still work?
Replies: 39
Views: 3010

Re: Question on Buffet's recent investment advice

Just don't forget that for Mr Buffett's widow, 10% is probably several years of living expense. The asset allocation is appropriate for an individual situation. The rest of the advice is applicable for everyone.
by dharrythomas
Sat Sep 06, 2014 5:43 pm
 
Forum: Investing - Help with Personal Investments
Topic: Question on Buffet's recent investment advice
Replies: 8
Views: 1810

Re: roll pension over to Trad. IRA in this situation?

Unless you're worried about the company surviving, don't do #2! The math doesn't work, it's not even close. You need to provide a little additional information about your overall financial picture before someone can give you solid advice about which option is better. 15 years is a long time. This de...
by dharrythomas
Sat Sep 06, 2014 5:29 pm
 
Forum: Investing - Help with Personal Investments
Topic: roll pension over to Trad. IRA in this situation?
Replies: 8
Views: 523

Re: Considering divesting international position...

There are a number of people smarter than me who don't think international is required (Jack Bogle being one). Over the long term returns converge. On the other hand, if you're going to switch back and forth based on what's hot now, the odds are that you'll underperform either. The issue is that you...
by dharrythomas
Sat Sep 06, 2014 5:00 pm
 
Forum: Investing - Help with Personal Investments
Topic: Considering divesting international position...
Replies: 12
Views: 627

Re: How similar/dissimilar should my wife's Roth IRA be to m

It's up to you. We set ours up using different funds but a similar asset allocation. Some use exactly the same funds in each. Some will use different funds and asset allocations as they build a total portfolio. There is no best, it depends on what you want to do and how important it is to you to kee...
by dharrythomas
Sun Aug 31, 2014 9:19 pm
 
Forum: Investing - Help with Personal Investments
Topic: How similar/dissimilar should my wife's Roth IRA be to mine?
Replies: 13
Views: 1084

Re: Buying a house, sell REITs?

Listen to PJW. Don't cost yourself years of tax free growth to save a little taxes now. If you make that decision, you should have invested in a traditional not a Roth IRA.

Good luck.

Harry
by dharrythomas
Sun Aug 31, 2014 9:13 pm
 
Forum: Investing - Help with Personal Investments
Topic: Buying a house, sell REITs?
Replies: 8
Views: 949

Re: Bad(?) advice given about Target Date Retirement funds

Frankly, I like them both.

We use TD funds in traditional IRA and TSP for the drawdown in risk.

I use LS Moderate Growth as the Core of my Roth. Different horizon since I don't think we'll need it.
by dharrythomas
Mon Aug 18, 2014 7:03 pm
 
Forum: Investing - Theory, News & General
Topic: Bad(?) advice given about Target Date Retirement funds
Replies: 103
Views: 6793

Re: Withdrawl from Target Retirement or Life Strategy Fund

If your modifying your asset allocation by withdrawals you are market timing. It may or may not work, depending on timeframe and how you define work. But rest assured that you've timed the market and changed the risk level and expected return of your portfolio. A balanced Vanguard fund will at least...
by dharrythomas
Sun Aug 10, 2014 1:56 pm
 
Forum: Investing - Help with Personal Investments
Topic: Withdrawl from Target Retirement or Life Strategy Fund
Replies: 51
Views: 4714

Re: Understanding implications of Shiller CAPE on retirement

The best use that I can manage is to lower my return expectations when the CAPE P/E is high. I'm paying more per unit of earnings than if the P/E were lower, if I pay more the income share left for me is less. As far as market timing, I thought the market was too frothy in the late 80s. If I'd waite...
by dharrythomas
Sat Aug 09, 2014 2:26 pm
 
Forum: Investing - Theory, News & General
Topic: Understanding implications of Shiller CAPE on retirement
Replies: 27
Views: 2727

Re: Maxing roth 401k vs trad 401k in high income tax bracket

A Roth account is also more valuable if there is any chance that you may leave it to heirs.

If I have some left, my preferred split is traditional to the church, taxable and Roth to the kids.
by dharrythomas
Thu Aug 07, 2014 3:32 pm
 
Forum: Investing - Theory, News & General
Topic: Maxing roth 401k vs trad 401k in high income tax bracket
Replies: 13
Views: 1343

Re: Maxing roth 401k vs trad 401k in high income tax bracket

Yes. Money in a Roth is more valuable than money in a traditional account or in a taxable account. If you either max out the accounts or are saving a percentage, you put more aside using a Roth account. Like many people, life style and savings are a trade off. DW will let me set aside 15% in TSP plu...
by dharrythomas
Thu Aug 07, 2014 3:27 pm
 
Forum: Investing - Theory, News & General
Topic: Maxing roth 401k vs trad 401k in high income tax bracket
Replies: 13
Views: 1343

Re: Lifestrategy fund vs. slice-and-dice in 401k

Either is OK.

If you like to play with it, s/d. If you want to "fire and forget", LSG. If you can access admiral shares, s/d is a little cheaper.

You may (or may not depending on your horizon) get a small extra return from the small and REIT.
by dharrythomas
Thu Aug 07, 2014 3:17 pm
 
Forum: Investing - Help with Personal Investments
Topic: Lifestrategy fund vs. slice-and-dice in 401k
Replies: 8
Views: 634

Re: Vanguard Star Fund Vs. Lifestrategy Moderate Growth Fund

The only other difference is that STAR has a few percentage points more equity. Either is very good.
by dharrythomas
Thu Aug 07, 2014 3:04 pm
 
Forum: Investing - Help with Personal Investments
Topic: Vanguard Star Fund Vs. Lifestrategy Moderate Growth Fund
Replies: 2
Views: 808

Re: Mutual Fund for a 10 year-old

I recommend LifeStrategy Growth or the Total World Stock Index. Target Retirement, LifeStrategy Moderate Growth, STAR, or Wellington are not bad options either depending on risk tolerance. Might want to hide some of the volitility in a balanced fund for a new investor. Total World Stock Index is the...
by dharrythomas
Thu Aug 07, 2014 2:58 pm
 
Forum: Investing - Help with Personal Investments
Topic: Mutual Fund for a 10 year-old
Replies: 10
Views: 722

Re: Maxing roth 401k vs trad 401k in high income tax bracket

I use the Roth though SC taxes are lower than CA. I'm saving more than I would the other way and I like knowing how much is mine as opposed to the uncertainty of future tax rates in a traditional account. Will we pay more than we have to? Time will tell. People here will do a great deal of math to p...
by dharrythomas
Thu Aug 07, 2014 1:51 pm
 
Forum: Investing - Theory, News & General
Topic: Maxing roth 401k vs trad 401k in high income tax bracket
Replies: 13
Views: 1343

Re: I have access to a military TSP...worth it?

I strongly recommend the Uniformed Services TSP. I just retired this year after a 30 year active and reserve career. The TSP was a great addition to the benefit package though it came later in my career and contributions were restricted in the beginning. The Roth option recently added gives you choi...
by dharrythomas
Sun Jul 27, 2014 6:36 pm
 
Forum: Investing - Help with Personal Investments
Topic: I have access to a military TSP...worth it?
Replies: 13
Views: 1171

Re: Using retirement assets and inheritance wisely

I agree with Paul. You're doing fine except that it doesn't appear that you're close to your stated asset allocation. I'd pay off the car loan, do or buy something the two of you want and put the rest in a LifeStrategy fund. You should ask yourselves: "Why are we still saving?" If you've g...
by dharrythomas
Mon Jul 21, 2014 8:04 pm
 
Forum: Investing - Help with Personal Investments
Topic: Using retirement assets and inheritance wisely
Replies: 12
Views: 1849

Re: College Kid Looking for some Vanguard Advice

If you have earned income a Roth is a great idea in your situation. Depending on the amount of earned income you anticipate for this year either a Target Retirement or a LifeStrategy fund would be outstanding. Low cost, indexed, broad diversification.

Good luck.
by dharrythomas
Sun Jul 20, 2014 8:39 pm
 
Forum: Investing - Help with Personal Investments
Topic: College Kid Looking for some Vanguard Advice
Replies: 7
Views: 965

Re: TSP vs Vanguard

A big part of the difference is that the TSP reaches its terminal asset allocation at the date, it is a "to" fund. Vanguard is a "through" fund which reaches its terminal asset allocation about 7 years after the target date. Most of the rest is accounted for by the fact that Vang...
by dharrythomas
Sun Jul 20, 2014 8:04 pm
 
Forum: Investing - Theory, News & General
Topic: TSP vs Vanguard
Replies: 10
Views: 1266

Re: Teaching Kids the Rules of Investing.

4 biggest issues: 1) Debt adds risk 2) Savings rate is under your control and is as critical as rate of return 3) Expenses (fees and taxes) come directly from your return) 4) Time value of money and compounding (both returns and expenses) If they master those concepts AND apply them, the rest will t...
by dharrythomas
Sat Jul 12, 2014 3:53 pm
 
Forum: Investing - Theory, News & General
Topic: Teaching Kids the Rules of Investing.
Replies: 17
Views: 2057

Re: Bernstein: Don’t Bother With International Bonds

It doesn't bother me that we own some in LifeStrategy and Target Retirement, but I don't think the potential benefit is worth the cost and effort to do it on my own.
by dharrythomas
Sun Jun 29, 2014 2:29 pm
 
Forum: Investing - Theory, News & General
Topic: Bernstein: Don’t Bother With International Bonds
Replies: 112
Views: 11392
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