Search found 494 matches

by digit8
Wed Jul 08, 2015 5:47 pm
Forum: Investing - Theory, News & General
Topic: How aggressive are you in Taxable?
Replies: 37
Views: 3111

Re: How aggressive are you in Taxable?

80/20. 80% is two small windfalls in Total Stock Market as my hope for pulling the pin early someday, and 20% in Ibonds to keep us afloat if someone else chooses to end my employment :happy
by digit8
Wed Jul 08, 2015 5:33 pm
Forum: Investing - Theory, News & General
Topic: TIPS - Did you give up?
Replies: 112
Views: 11550

Re: TIPS - Did you give up?

My wife's 403(b) has a minimal matching amount (under 1%) and a TIPS option that seemed a natural match with her pension. We basically ignore both for planning purposes though, the margin for error that gives some confidence with calculators and estimates. Of the stuff that "counts", our r...
by digit8
Mon Jun 29, 2015 6:27 pm
Forum: Investing - Theory, News & General
Topic: "Target Date Funds Are Riskier Than You Think"
Replies: 45
Views: 7010

Re: "Target Date Funds Are Riskier Than You Think"

Just curious, does anyone know the oldest TDF still existing? To me, the heart of TDFs creation, and the majority (but by no means only) investor type would be all about the black box aspect. Put reasonable money in, get a reasonable retirement, no questions asked. The success or failure of the conc...
by digit8
Wed May 27, 2015 6:07 pm
Forum: Investing - Theory, News & General
Topic: What's so great about simplicity?
Replies: 118
Views: 10250

Re: What's so great about simplicity?

Simplicity has taken me from spending 3-4 hours a week on my investments to about 10 minutes a month.
When I back tested a comparison last year, I came out about even. Add in time value, though....
by digit8
Sun Apr 26, 2015 6:38 pm
Forum: Investing - Theory, News & General
Topic: I-Bonds/TIPs:When interest rate rises, inflation is lowered?
Replies: 5
Views: 940

Re: I-Bonds/TIPs:When interest rate rises, inflation is lowe

Even if you could assume a pure and easy to follow relationship between rates and inflation, I think the last several years years of debate, discussion and panic over something as simple as the word "patient" in discussion of those rates belies the idea of their being a simple, actionable ...
by digit8
Sun Mar 29, 2015 9:59 am
Forum: Investing - Help with Personal Investments
Topic: If you had 1 [investing] book to recommend...
Replies: 51
Views: 5822

Re: If you had 1 [investing] book to recommend...

Pound Foolish by Helaine Olen. It may sound counter intuitive since this is really a refutation of some of the limitations and foibles of the personal finance movement. But for me it was a much needed palate cleanser during some stutter steps, a reminder that not perfectly following the plan of some...
by digit8
Sat Mar 28, 2015 10:04 pm
Forum: Investing - Help with Personal Investments
Topic: Apply For HELOC as Emergency Funds???
Replies: 23
Views: 2351

Re: Apply For HELOC as Emergency Funds???

I considered but ultimately rejected it because it seemed too much like doubling down on long term emergencies. I loathe the idea of finally getting a new job, or completing arduous medical treatment, only to find myself with a huge pile of home debt to pay off, even at a low interest rate.
by digit8
Sun Mar 22, 2015 10:38 am
Forum: Investing - Theory, News & General
Topic: Should I invest my emergency fund?
Replies: 71
Views: 8379

Re: Should I invest my emergency fund?

I treat the EF as a monthly bill to myself, so money is always going into it. When I have more then 6 months in an MMSA, I move the extra to I Bonds and a taxable investment fund, but a cash stash is something I'll never give up. It is deeply satisfying to solve a major problem by simply writing a c...
by digit8
Sun Mar 15, 2015 6:13 pm
Forum: Investing - Help with Personal Investments
Topic: Emergency fund - importance & lessons learned
Replies: 3
Views: 920

Re: Emergency fund - importance & lessons learned

While I enhance it through other means (primarily I bonds), I've always been borderline paranoid about maintaining a no-frills MMSA emergency fund. There very little room for pleasure to be found in times of disaster, but one is the ability to respond with a simple "oh well, I'll write a check&...
by digit8
Wed Feb 18, 2015 7:30 pm
Forum: Investing - Theory, News & General
Topic: "Couch Potato investing wins yet again"
Replies: 2
Views: 1173

Re: "Couch Potato investing wins yet again"

[quote="WagnerjI think we all agree that low costs is a clear winner. Where does the article indicate that a simple portfolio is superior to a more complex that incorporates (for example) tax management?[/quote] I feel the Couch Potato attitude towards more complicated portfolios are aptly by t...
by digit8
Mon Dec 29, 2014 2:45 pm
Forum: Investing - Theory, News & General
Topic: Target Retirement Funds - are they the AA you would choose?
Replies: 32
Views: 3051

Re: Target Retirement Funds - are they the AA you would choo

Target funds could improve in a lot of ways, but I do think they get a bad rap. The primary market they're intended for is an incredibly (I would argue, depressingly) broad swath of the population- people who want to save for retirement without having to learn or spend much time on their investing. ...
by digit8
Fri Dec 26, 2014 11:44 pm
Forum: Investing - Help with Personal Investments
Topic: Do I-Bonds Count (as part of your bond allocation)?
Replies: 24
Views: 2467

Re: Do I-Bonds Count (as part of your bond allocation)?

All finances are fungible, but I-Bonds (to mangle Orwell) are more fungible then others- there is very little you can't reasonably use them for. Gut level, I'm not comfortable with the suggestion of Zvi Bodie that maxing out I Bonds by themselves (in combination with Social Security) makes a reasona...
by digit8
Tue Dec 16, 2014 6:00 pm
Forum: Investing - Theory, News & General
Topic: [POLL] What Fixed Income Assets Do You Use?
Replies: 37
Views: 1984

Re: [POLL] What Fixed Income Assets Do You Use?

MMSA for savings/ big ticket items I can plan for, I Bond Emergency or Early Retirement (depending on the breaks), Total Bond for investing. I'll probably add TIPS at some point but for now I'm afraid if I start tinkering I won't be able to stop.
by digit8
Tue Dec 16, 2014 5:36 pm
Forum: Investing - Theory, News & General
Topic: Bogle on CNBC 12-16-2014: 100% USA squity
Replies: 35
Views: 3926

Re: Bogle on CNBC 12-16-2014: 100% USA squity

The reason he advocates 100% U.S. equity is simply home country bias. I think you've missed a few interviews if you're assuming that. I'm sure any number of people could provide a plethora of quotes Mr. Bogle has given about his reasoning in the matter. You may not find them convincing (frankly, I ...
by digit8
Wed Dec 10, 2014 11:12 pm
Forum: Investing - Theory, News & General
Topic: 'Might Jack Bogle Be Wrong for a Change?' [Int'l holdings]
Replies: 49
Views: 4611

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

A typical Boglehead would walk on hot coals to reduce his ER by 0.25%. He would LOVE to earn 2% more with less risk. If they don't really care about 2%, then they won't care about high ER's either. Apples and oranges...at any rate my point is not that the difference is inconsequential,but that succ...
by digit8
Wed Dec 10, 2014 7:22 pm
Forum: Investing - Theory, News & General
Topic: 'Might Jack Bogle Be Wrong for a Change?' [Int'l holdings]
Replies: 49
Views: 4611

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

“A portfolio that was 50% U.S. stocks, 25% developed international and 25% emerging markets generated an annual return of 14% over this period with a standard deviation of 19.8. A pure U.S. portfolio generated a 12% return with a standard deviation of 17.9. You not only generated a better nominal r...
by digit8
Sat Dec 06, 2014 11:27 am
Forum: Investing - Theory, News & General
Topic: TIPs, Total Bond Market, or Both?
Replies: 35
Views: 4367

Re: TIPs, Total Bond Market, or Both?

I'd argue it's impossible to make a fully reasonable call on TIPS just yet: they've only existed since 1997, which covers a time period both relatively short and highly abnormal in investing history.
by digit8
Sat Dec 06, 2014 1:19 am
Forum: Investing - Theory, News & General
Topic: How do you rebalance?
Replies: 40
Views: 3441

Re: How do you rebalance?

My last true rebalance was about 4 years ago- 3 fund portfolio, His and Hers Roths, my 401k. Not exactly 1/3 each as it "should" be, but super simple and the only changes are new contributions.Not perfect, but it is nice to just put it on automatic for awhile, and I'm not looking forward t...
by digit8
Mon Nov 24, 2014 6:44 pm
Forum: Investing - Theory, News & General
Topic: Vanguard Ultra-Short-Term Bond Fund coming in early 2015.
Replies: 39
Views: 5095

Re: Vanguard Ultra-Short-Term Bond Fund coming in early 2015

Agreed, there is a thin but definite line between Money Market and Ultra Short Term, enough that I can see Vanguard's gist if not totally agree with it. Even after the crash, MM's are seen as just shy of completely safe, and a floating NAV shakes that perception psychologically if not logically. And...
by digit8
Wed Nov 19, 2014 4:59 pm
Forum: Investing - Help with Personal Investments
Topic: Another bond fund question do I need short term in my 401k?
Replies: 7
Views: 541

Re: Another bond fund question do I need short term in my 40

We carried some short term bonds in a 401k because our plan exempted it from frequent trading or other forms of freeze and we had all the basic indexes also available. It made re balancing more convenient by localizing it instead of messing around across IRA's, taxables, etc. So that's something. Bu...
by digit8
Sun Nov 16, 2014 4:50 pm
Forum: Investing - Help with Personal Investments
Topic: How To Invest Your Emergency Fund?
Replies: 97
Views: 17291

Re: How To Invest Your Emergency Fund?

Of course I know that a bank needs to be FDIC insured. NCUA insurance through a credit union will give you the same protection (and, I'd argue, better service if not always a better rate). I go with 6 months in high interest savings, plus depositing all my coins through a handy-dandy machine at the...
by digit8
Sun Nov 09, 2014 10:36 am
Forum: Investing - Theory, News & General
Topic: Do IBonds make sense living in a high inflation area
Replies: 30
Views: 3422

Re: Do IBonds make sense living in a high inflation area

I disagree. While they're not very attractive compared to past I Bond rates, they are, nevertheless, better than just about any other risk-free short-term option available. My thinking is, in the short term, Ibonds are not earning a significant amount more than generally available risk free NCUA or...
by digit8
Sat Nov 08, 2014 4:49 pm
Forum: Investing - Theory, News & General
Topic: Do IBonds make sense living in a high inflation area
Replies: 30
Views: 3422

Re: Do IBonds make sense living in a high inflation area

There are a lot of things to consider, and I'd put location way down on the list. Right now, my chief concern would be time frame. There is virtually no upside to buying I Bonds you expect to redeem in the next few years.
by digit8
Sat Nov 08, 2014 11:28 am
Forum: Investing - Theory, News & General
Topic: How much to save for retirement?
Replies: 9
Views: 2820

Re: How much to save for retirement?

Meh. I've pretty much lost faith in retirement calculators. Finally settled for the ultra-simple Ibbotson version (free versions on Morningstar, CNN, and others). I just plug in half of my actual savings and figure if I'm saving as much or more than what it comes back with, I'm happy.
by digit8
Fri Oct 24, 2014 10:35 pm
Forum: Investing - Help with Personal Investments
Topic: Emergency Fund Questions
Replies: 14
Views: 2412

Re: Emergency Fund Questions

I try to keep every form of income that is largely beyond my control, from severance pay for the emergency fund to SS for retirement, out of my mind and calculations. I hope it will all be there, even have some degree of confidence- but the fact is, there are a myriad of ways it could all vaporize a...
by digit8
Fri Oct 03, 2014 9:14 pm
Forum: Investing - Help with Personal Investments
Topic: Total world stock index
Replies: 19
Views: 3278

Re: Total world stock index

Total World is great for a very specific niche: those not hands-on enough to want to deal with periodic re balancing of Total Stock and Total International, yet too hands on to be satisfied with a Target Retirement or LifeStrategy fund.
by digit8
Fri Oct 03, 2014 10:03 am
Forum: Investing - Help with Personal Investments
Topic: Best place to park my emergency funds
Replies: 16
Views: 2276

Re: Best place to park my emergency funds

If you're keeping a dedicated, pure emergency fund- "safe" money only, I'd say the first step is to sit down and do the math of where you have it vs. where you're thinking of moving it. Odds are, you will not see much difference. IBonds are always a reasonable choice, and right now they ha...
by digit8
Tue Sep 23, 2014 9:04 am
Forum: Investing - Theory, News & General
Topic: Could one theoretically be 100% stocks your whole life?
Replies: 43
Views: 2962

Re: Could one theoretically be 100% stocks your whole life?

Investing has three basic variables- how much you put in, how much you take out, and what your investment returns. For a pure equity portfolio, your returns will vary more then most. You would need to compensate by either putting in more, or taking out less during low-performing periods. That's the ...
by digit8
Mon Sep 22, 2014 12:31 pm
Forum: Investing - Help with Personal Investments
Topic: Rainy day fund
Replies: 6
Views: 749

Re: Rainy day fund

bungalow10 wrote:ibonds. Currently 1.93%.



+1. Spread out to mitigate the one year holding period, it's tough to beat the equivalent of a fully insured bank account with (generally) higher returns and better tax treatment when you want to set aside some "whatever" money.
by digit8
Sun Sep 21, 2014 10:34 am
Forum: Investing - Help with Personal Investments
Topic: Risks to putting most investments at Vanguard
Replies: 18
Views: 1273

Re: Risks to putting most investments at Vanguard

Intellectually I consider the risks of being 100% Vanguard to be virtually nil. I've yet to see a comprehensive, convincing argument otherwise. Emotionally, I could care less. Going all in would make me far more tense than is worth it, and I'd rather spread a little elsewhere and be comfortable then...
by digit8
Sat Sep 20, 2014 11:03 am
Forum: Investing - Theory, News & General
Topic: I Bonds - Now or November
Replies: 8
Views: 1688

Re: I Bonds - Now or November

I remain a fan of small monthly purchases vs. trying to "market time". If you look at the history of rate changes, you'll see with a very few exceptions (the initial drop to 0% during the Crash, for example) there is very little reward in being right and very little punishment for being wr...
by digit8
Sat Sep 06, 2014 11:22 am
Forum: Investing - Theory, News & General
Topic: Do you consider your emergency fund part of your portfolio?
Replies: 50
Views: 3275

Re: Do you consider your emergency fund part of your portfol

Yes.
I used to dither over this one, but then I put the question in reverse: is any asset I have not[u][/u] a part of my emergency fund, given a big enough emergency? Who refuses food, shelter, and medical care because, while they have the money, it's not allocated correctly for that purpose?
by digit8
Sat Sep 06, 2014 11:08 am
Forum: Investing - Help with Personal Investments
Topic: I-bonds: Automatic Investments
Replies: 14
Views: 2046

Re: I-bonds: Automatic Investments

I do irregular, small deposits. IBonds are basically an extension of my emergency fund with an MMSA. My credit union has one of those change machines that let me deposit direct to it, so I fill up a jar, take it in, and then move that amount to an Ibond. Since I've gone to the practice of cash inste...
by digit8
Sun Aug 10, 2014 6:49 pm
Forum: Investing - Help with Personal Investments
Topic: cash reserves
Replies: 19
Views: 1987

Re: cash reserves

This is essentially what you just said..."I know market timing is a fools game, but do you think I should time the market?" It reminds me of John Oliver, in a different context, commenting on the wonder of Americans tendency towards simultaneous cynicism and optimism: "Yes, this game...
by digit8
Sun Aug 10, 2014 6:43 pm
Forum: Investing - Help with Personal Investments
Topic: cash reserves
Replies: 19
Views: 1987

Re: cash reserves

I've a friend who went for what he had the admirable self awareness to call a "Do Something" fund, tucking a tiny portion of his portfolio into a money market fund and occasionally transferring a tiny portion of that into whatever, depending on the latest news. It never makes much differen...
by digit8
Sat Aug 09, 2014 8:34 pm
Forum: Investing - Help with Personal Investments
Topic: Need for International Investing ?
Replies: 56
Views: 3558

Re: Need for International Investing ?

This is a question that frequently gets tossed around on the boards, often with the implication of a false zero sum choice. After all, I don't think anyone here will argue that US stocks (or more accurately, US based stocks) will fail[i] [/i] over the long term, it's just that many make a good case ...
by digit8
Sat Jul 12, 2014 7:47 am
Forum: Investing - Theory, News & General
Topic: Kiplinger: Why You Should Avoid Most Bond Index Funds
Replies: 32
Views: 7151

Re: Kiplinger: Why You Should Avoid Most Bond Index Funds

The older I get and the more I study investing, the less detailed my own plans become. I've got TBM for my 401 plan. Might pick up some TIPS in my Roth when I'm fully happy with my equity allocation. Probably get some short-term index as I get closer to retirement. Boom, done and I'm out to catch a ...
by digit8
Sun Jun 22, 2014 6:03 pm
Forum: Investing - Help with Personal Investments
Topic: Invest in Roth IRA or Pay Down Rental Mortgage?
Replies: 11
Views: 867

Re: Invest in Roth IRA or Pay Down Rental Mortgage?

I look at your situation and I break it down in to "couple, early 30's, nearly $200k income and clearly very driven financially". I say, keep plugging on the Roth. It's a pretty good bet on the face of it that your earnings, the tax rate, or both will be up enough in 30 years to make it wo...
by digit8
Sun Jun 22, 2014 5:50 pm
Forum: Investing - Help with Personal Investments
Topic: Should one ever do a cash-out refi to invest?
Replies: 38
Views: 4247

Re: Should one ever do a cash-out refi to invest?

There is a big difference, in my mind, between rolling the dice and playing Russian Roulette. Imagine 2008 Part 2 (Electric Boogaloo) hits. You are now underwater on your mortgage, the investments you put the cash out to have tanked, and you want to sell the home to take a new job. Have you got an o...
by digit8
Sat Jun 21, 2014 10:46 am
Forum: Investing - Help with Personal Investments
Topic: Tax Exempt Bond Fund as Emergency Fund?
Replies: 8
Views: 905

Re: Tax Exempt Bond Fund as Emergency Fund?

Plus one on the tiered concept, though I go NCUA savings->Ibonds->taxable equity funds. I've thought about adding in a bond fund,but for some reason I always focus on the negatives- less safe then the savings, less return then then equity.
by digit8
Fri Dec 13, 2013 11:43 am
Forum: Personal Finance (Not Investing)
Topic: Planning for unintentional retirement?
Replies: 12
Views: 1133

Planning for unintentional retirement?

Looking for input as to whether this has some logic to it or is just fear taking over. Rough numbers, along with a 1 year emergency fund I'm putting over 20% of annual income to my 401k, also maxing out a Roth IRA and have been for my working life. As I round the corner to 40, however, having enough...
by digit8
Sun Dec 08, 2013 1:16 pm
Forum: Investing - Help with Personal Investments
Topic: Emergency fund allocation
Replies: 16
Views: 1761

Re: Emergency fund allocation

If you set aside money for an emergency fund, why would you invest in things that will, on occasion, lose a lot of value? If your emergency fund is cut in half, it is not really much of an emergency fund, is it? That is why cash, money market, short term bonds, CDs, etc. are generally suggested. I ...
by digit8
Sun Dec 08, 2013 11:51 am
Forum: Investing - Help with Personal Investments
Topic: Emergency fund allocation
Replies: 16
Views: 1761

Re: Emergency fund allocation

If you're hit hard enough, long enough, any asset is part of your emergency fund. I would casually define my emergency fund as a years expenses in an MMSA, and soon some ibonds. But I've got a decent sized taxable index stock fund as well, and the fungible nature of money has let me call it anything...
by digit8
Sun Nov 24, 2013 7:54 pm
Forum: Investing - Theory, News & General
Topic: Scott Burns shows that costs matter
Replies: 7
Views: 1159

Re: Scott Burns shows that costs matter

I read a book on the 1900's tycoons(or robber barons, as your viewpoint chooses), and the only piece that has stuck with me, thanks to mutual funds, was Dale Carnegie harping on cost control for his factories. To paraphrase- costs are the only thing you know up front, and the only control you have.
by digit8
Sun Nov 24, 2013 6:51 pm
Forum: Investing - Theory, News & General
Topic: Money Market "Safety"?
Replies: 15
Views: 2447

Re: Money Market "Safety"?

Money Markets have followed the path of a lot of other financial products: introduced as a useful, even arguably necessary product. The product succeeds. The move is made to grow this success, far beyond what it should be. Over time, careful wording became borderline lies, and what was something hel...
by digit8
Sun Nov 24, 2013 1:18 pm
Forum: Investing - Help with Personal Investments
Topic: Are you buying I bonds in 2014? And if so, for what role?
Replies: 46
Views: 5811

Re: Are you buying I bonds in 2014? And if so, for what role

I have been continuously tempted to move a portion of my emergency fund over to Ibonds for the last few years. I put it off for simple laziness and preemptive fear of additional bookkeeping, as well as a bit of paranoia about the security of my (mortgage industry) job. For me, I'd like to place them...
by digit8
Sat Oct 26, 2013 7:22 pm
Forum: Investing - Theory, News & General
Topic: Article -Almost no one can beat the market
Replies: 11
Views: 1699

Re: Article -Almost no one can beat the market

I'd change the title- strike out the "Almost" and add "forever" to the end.
Some people beat the market. Some people do it for a very long time. But not many, and never over ones total investing lifetime.
by digit8
Sat Oct 26, 2013 7:15 pm
Forum: Investing - Help with Personal Investments
Topic: I Bonds or IRA for Emergency Fund? Or something else?
Replies: 20
Views: 1521

Re: I Bonds or IRA for Emergency Fund? Or something else?

If you don't mind, what do you use to hold your emergency fund? A years expenses in an MMSA, and what is currently a couple of years worth in a taxable Total Stock Market index fund. Monthly I dump some cash to the MMSA and yearly any extra there goes to the TSM. I used to have CD's rolling every t...
by digit8
Fri Oct 25, 2013 8:31 am
Forum: Investing - Help with Personal Investments
Topic: I Bonds or IRA for Emergency Fund? Or something else?
Replies: 20
Views: 1521

Re: I Bonds or IRA for Emergency Fund? Or something else?

I hate, hate, HATE the whole idea of IRA's as an emergency fund. Certainly, in a big enough emergency, it's open season on any and all funds available. But looking at ones IRA as a piggybank from the start is even more hazardous in the long term then looking at ones home that way.
by digit8
Fri Oct 25, 2013 8:25 am
Forum: Investing - Help with Personal Investments
Topic: Stick with a savings account?
Replies: 30
Views: 4069

Re: Stick with a savings account?

I sat down an did the math for my own savings at one point....looking at CD's, Ibonds, the whole gamut for short term savings. And after about five hours work I realized that with some careful shifting in planning, I could make about an extra 20 bucks annually. So I cooked at home instead of going o...

Go to advanced search