Search found 408 matches

by convert949
Tue Jan 10, 2023 7:33 am
Forum: Investing - Theory, News & General
Topic: Retired…. Buy or sell I Bonds?
Replies: 11
Views: 1898

Re: Retired…. Buy or sell I Bonds?

Mel Lindauer wrote: Tue Jan 10, 2023 12:03 am Have you considered additional tax-loss harvesting? Obviously, that wouldn't include selling your I Bonds.
Would if I could but too soon to tell… equities, while down from early 2022 still have major capital gains attached. Bonds (excluding I Bonds, of course) are (for now) also slightly positive after the exchange in December. Should bonds continue to slide, I would look there. Would not want to pay tax on short term gains on current bond holding.

BTW, thanks to you I have been accumulating I Bonds since my early BH days. Saved my bacon this year!

Best to all,
by convert949
Mon Jan 09, 2023 2:47 pm
Forum: Investing - Theory, News & General
Topic: Retired…. Buy or sell I Bonds?
Replies: 11
Views: 1898

Re: Retired…. Buy or sell I Bonds?

Thanks all for the replies…. In fact, because of I Bonds, bonds are slightly above target allocation and equities are below target. So, by further explanation, bonds are where I would withdraw funds. I took a tax loss harvest in late December selling TBM and purchasing intermediate Term Bond Index. That offset much of my gain from selling TSM in January 2022 at the market high to fund 2022. So far, so good. So no tax implications to nominal bonds unless the NAV goes up. I Bonds would have taxable interest as sold and as suggested, would sell the “0%” fixed bonds first if at all. Also, I would sell the newer “0%” bonds first to minimize tax on interest. I live in Florida so state tax is not an issue. The one thing I neglected is the concept ...
by convert949
Mon Jan 09, 2023 8:08 am
Forum: Investing - Theory, News & General
Topic: Retired…. Buy or sell I Bonds?
Replies: 11
Views: 1898

Retired…. Buy or sell I Bonds?

Retired BH here…. 73 YO. Current portfolio 40/60 with fixed income nearly 50/50 I Bonds and nominal bonds. Currently both equities and nominal bonds are under water. No pension just SS so will need money to live from portfolio…

The question is…. Where do I withdraw living expenses now…. Logically, I should be selling I Bonds as they are “above water”. My IPS has I bonds for inflation protection as well as a back stop for cash in a market where both equities and bonds are down (NOW).

Having said that, I am having difficulties selling my “one sure thing”. Would appreciate any input from BH in a similar situation as to what they are doing until the ship rights itself…

Best to all…
by convert949
Sun Dec 18, 2022 8:09 am
Forum: Investing - Theory, News & General
Topic: I Bonds Mega Thread (I Bond Heads Rejoice!)
Replies: 6658
Views: 1241654

Re: I Bonds Mega Thread (I Bond Heads Rejoice!)

HueyLD wrote: Sat Dec 17, 2022 6:41 am Convert949,

If you have heirs in mind, do keep in mind that I bonds do not get basis step-up when inherited. And you may want to spend down some of your vast I bond holdings for your own enjoyment.

Have a happy life, Boglehead
My bad…. Meant to say that I-Bonds would likely be the last fixed income source that we would use…. Legacy would be mostly equities and hard assets. Thanks for pointing that out 8-)
by convert949
Sat Dec 17, 2022 6:31 am
Forum: Investing - Theory, News & General
Topic: I Bonds Mega Thread (I Bond Heads Rejoice!)
Replies: 6658
Views: 1241654

Re: I Bonds Mega Thread (I Bond Heads Rejoice!)

I thought a big lesson of the past two years was that it's good to build up a sizable I Bonds position before unexpected inflation hits. Those who've bought them consistently over previous years benefited wonderfully this time. (Unfortunately this does not describe me, but I maxed them in July 2021 and January '22, so at least I had $20k in for the 7.12%-9.62%-6.48% run.) Basically, yes. The point of I-Bonds is not to chase yields. The point of I-Bonds is to have an inflationary-protected asset class in your asset allocation. That's my stance on them too. Started collecting them back in 2005. I was never looking for an "I-Bond Party" such as has happened here recently with the high paying interest, which pleasantly affected ALL o...
by convert949
Sat Dec 03, 2022 3:48 pm
Forum: Investing - Theory, News & General
Topic: 100% Wellesley Income Fund
Replies: 120
Views: 27033

Re: 100% Wellesley Income Fund

Our SEP IRA money is 100% Wellesley. Taxable in a typical 3 fund portfolio. Set up automatic withdrawals to cover RMD's after calculating that at the historical return, (I know, I know), I will never run out of money. Sort of my own personal annuity 8-)
by convert949
Sun Nov 27, 2022 6:53 am
Forum: Investing - Theory, News & General
Topic: Withdrawal based on net worth?
Replies: 39
Views: 5097

Re: Withdrawal based on net worth?

Agree with most previous comments about primary residence. We do however include assets (in our case a boat) that we PLAN to sell at a certain age. Even then, it does not alter our asset allocation but rather is included in our “plan B” scenario. We do use a HELOC for home improvements/repairs to conserve our investment assets. Already moved to a MCOL area and loving it 8-)
by convert949
Fri May 13, 2022 9:41 am
Forum: Investing - Theory, News & General
Topic: Tax loss harvesting with bonds?
Replies: 10
Views: 1507

Re: Tax loss harvesting with bonds?

Hmmm…. Would selling Total Bond Market and exchanging into Short Term Bond and buying Total Bond back after 30+ days qualify?
by convert949
Sat Jan 08, 2022 3:57 pm
Forum: Investing - Theory, News & General
Topic: What is your age and asset allocation ?
Replies: 1156
Views: 152027

Re: What is your age and asset allocation ?

DW and I are both 72. AA 40/55/5. 20% of equities are international. Bonds 20% I Bonds, 10% short term, rest TBM. Duration matched to expense timeline. Sleep fine :happy
by convert949
Tue Dec 28, 2021 3:44 pm
Forum: Investing - Theory, News & General
Topic: Vanguard Wellesley Income Fund
Replies: 12
Views: 4284

Re: Vanguard Wellesley Income Fund

I have been perusing some of the more recent Wellesley threads and find them very interesting from a number of perspectives. 1. Yes, Wellesley has a great track record over time. Yes, you can do better but not by much for a 40/60 AA. 2. Yes, Wellesley is not very tax efficient. We hold it in our SEP IRA's where that does not matter. As we faced RMD's anyway, we took the bulk of our SEP IRA's and purchased dual life SPIA's. We have taken the remainder of our SEP IRA's to create an income stream using Wellesley. Wellesley currently is less than 10% of our investable assets. The balance is in a three fund portfolio + short term bonds and I Bonds. Overall AA is roughly 40/60, same as Wellesley. Portfolio Visualizer tells me that I can take 7% t...
by convert949
Tue Oct 06, 2020 1:22 pm
Forum: Investing - Theory, News & General
Topic: Are Wellington-Wellesley just closet index funds?
Replies: 76
Views: 8011

Re: Are Wellington-Wellesley just closet index funds?

No offence... Lately it seems that we all are looking at an elephant under a microscope... I am a fan but until recently, only recommended Wellesley to my more conservative friends and relatives. Now that I am retired and older, I realize that "I represent that remark". Sure, you can create a similar return with index funds but why bother if you have a single fund with a great history for a portion of your investments that you do not want to stress over. You could do worse than W or W...
by convert949
Sun Oct 04, 2020 11:12 am
Forum: Investing - Theory, News & General
Topic: Are Wellington-Wellesley just closet index funds?
Replies: 76
Views: 8011

Re: Are Wellington-Wellesley just closet index funds?

Guess I am in good company... After recommending Wellesley to Kids, Parents, Grandparents, etc. for many years as a conservative investment that has performed well with less perceived risk, I recently purchased it myself with a portion of our SEP IRA money (no worries about tax inefficiency). The balance had been used to purchase a pseudo pension (SPIA) a few years ago.

My intention is to "let it ride" taking only RMD's leaving the rest to our kids in the form of an investment that they could stick with as well.
Short of a huge U turn in investment philosophy, that is... :sharebeer
by convert949
Tue Aug 11, 2020 4:08 pm
Forum: Investing - Theory, News & General
Topic: Convince me not to sell all my US equities to Cash temporarily
Replies: 135
Views: 13643

Re: Convince me not to sell all my US equities to Cash temporarily

Hector wrote: Mon Jul 20, 2020 2:52 pm Seems like your AA is too aggressive for you.
+1

I had decided to do my once every 5 year de-risking early this year (70 and retired last change at 65) but was stymied by the pandemic. Decided to hang in until market improved and made the last trade today. Back on track with the plan. Not sure what will happen but now have adequate fixed income to weather whatever comes...
by convert949
Sat Jul 11, 2020 2:18 pm
Forum: Investing - Theory, News & General
Topic: Vanguard's Wellesley Income fund is incredible
Replies: 716
Views: 177718

Re: Vanguard's Wellesley Income fund is incredible

Robot Monster wrote: Sat Jul 11, 2020 1:36 pm
Triple digit golfer wrote: Sat Jul 11, 2020 12:17 pm
whodidntante wrote: Sat Jul 11, 2020 12:09 pm I like watching Bogleheads make exceptions for the W funds.
Agreed. Somehow they're exempt from all Boglehead principles.
Do we have to abide 100% to Boglehead principles? Can't we be like semi-vegetarians who sometimes eat bacon?
LOL... my cardiologist calls me a “flexitarian” Because I adhere to a gluten free diet with the rest focused on healthy choices with a steak thrown in once in a while... :sharebeer
by convert949
Sat Jul 11, 2020 8:10 am
Forum: Investing - Theory, News & General
Topic: Vanguard's Wellesley Income fund is incredible
Replies: 716
Views: 177718

Re: Vanguard's Wellesley Income fund is incredible

Interesting thread... I have recommended Wellesley for years to my kids for a college fund, parents and in-laws as a reliable SWAN fund in retirement. Posted a couple of times but was discouraged by the board.

Having converted the bulk of our SEP IRA assets to a pension via SPIA’s, I recently purchased Wellesley with the remaining balance. My reasons included many of those listed above as well as the opportunity to pass it on to our kids in a simple inherited IRA that they are less likely to mess with.

In short, I finally decided to take my own advice...
by convert949
Wed Jun 24, 2020 4:27 pm
Forum: Investing - Theory, News & General
Topic: Reduce bonds for equities?
Replies: 30
Views: 2931

Re: Reduce bonds for equities?

As I enter the last 10 years or so of accumulation (maybe less), I’d obviously like to maximize my returns like everyone else. Assuming stock returns are above inflation over the next decade, are there any conditions under which an investment in total bond makes sense? I think I’d rather increase equities and deal with the volatility rather than accept negative real returns on bonds. I’m currently about 70-75% stocks and the recent decline in March was hardly buffered by my bonds. What’s another 5% loss when you lost 5+ years of living expenses or so. I’m on a similar timeline, and I am choosing to stay in a high equity portfolio up until a few years before retirement when I’ll glide down equities slightly, and then glide back up during re...
by convert949
Fri Jun 12, 2020 7:08 am
Forum: Investing - Theory, News & General
Topic: Updates: 60/40 VS 30/70 Allocation: Bernstein VS Ferri ? What Did You Do Post Pandemic 3/2020? or YTD 2022?
Replies: 263
Views: 45419

Re: Updates: 60/40 VS 30/70 Allocation for Retirees: Bernstein VS Ferri ? What Did You Do Post Pandemic RBD 3/2020?

1. Considering Berstein's 2002 recommendation for a 60/40 allocation and also, R. Ferri's suggestion of a 30/70 allocation as the better "center of gravity" for retirees, what do you feel is the best allocation for a retiree? Why 2. If you are not yet a retiree, which allocation would you consider best when you do retire? Why? 3. If you are already retired, assuming familiarity with both Berstein and Ferri's suggestions, what allocation has been working best for you? Why 1. I don't do percentages. I keep what I need to live on in safe investments like CDs and I-bonds. The rest I gamble in the stock market. Allocation percentages are irrelevant. I've read here that Bernstein advocates a similar approach. Perhaps I am wrong, or if ...
by convert949
Mon May 18, 2020 10:14 am
Forum: Investing - Theory, News & General
Topic: Change in Strategy on withdrawals?
Replies: 7
Views: 754

Re: Change in Strategy on withdrawals?

Wade Pfau arrives at the things he discusses with people by modeling, which is an approach you would probably need to assess your whole picture. I have, by the way, the impression that much of what Wade has shown about "bond tents" is not all that large an effect even if it is real. I would not go too much whole hog with the idea. dbr... Took your suggestion and did some modeling on the effect of withdrawals from fixed income with little cap gains vs. equities with high capital gains... The reduction in our tax bill had a couple of effects, one expected, one I had not thought of. The obvious benefit was conserving capital not spent on current taxes. What I did not appreciate is that even ignoring the Plan B assets, the lower tax ...
by convert949
Sun May 17, 2020 3:54 pm
Forum: Investing - Theory, News & General
Topic: Change in Strategy on withdrawals?
Replies: 7
Views: 754

Re: Change in Strategy on withdrawals?

I'm 72 and income from SS and pension almost equals our normal expenses. I like the idea of not selling taxable equities to have heirs inherit stepped up basis and avoid taxes. But I would think it is a bit early to start consuming your fixed income as the sole source of withdrawals. I think you should consider having taxable equity distributions not reinvested. This should give you some of your needed withdrawals and not increase your taxes. It will also help preserve your fixed income assets. I guess I'd still consider withdrawing some taxable equities when they have a positive year to keep your allocation moderate while still keeping an eye on benefits to heirs. At 72 I'm not investing for my heirs -- they will do fine. I'm making sure ...
by convert949
Sun May 17, 2020 9:53 am
Forum: Investing - Theory, News & General
Topic: Change in Strategy on withdrawals?
Replies: 7
Views: 754

Re: Change in Strategy on withdrawals?

If you want to increase the chances for more wealth to be passed on to heirs then you would increase your allocation to stocks. This does not necessarily increase the risk that you will run out of money during retirement as long as your overall rate of spending is not too high. You don't say what that rate is. Increasing allocation to stocks will increase the size of fluctuations in the value of the portfolio and will require you to live through greater ups and downs. It will also mean higher uncertainty on how much wealth you will pass on, but mostly uncertain in the high side. You could also get hit by a stock market disaster along the way. You are correct that if a large fraction of what you intend to pass on is gains in a taxable accou...
by convert949
Sun May 17, 2020 8:57 am
Forum: Investing - Theory, News & General
Topic: Change in Strategy on withdrawals?
Replies: 7
Views: 754

Change in Strategy on withdrawals?

Retired 70 YO here... retired since 59... current portfolio is 5% cash, 55% bonds and 40% equities (age -110 in bonds). So far has worked well for me and DW. FI represents 10-15 years in expenses in excess of SS, SPIA’s. Simple withdrawal strategy is to take RMD’s, rest from whatever is up at the beginning of each year to MM Acct to rebalance to target AA. We recently restated our trusts in Florida and have begun to think more about legacy issues. One issue is that with equities up until recently, we have been making those withdrawals from equities resulting in a significant tax bill as there are capital gains of ~ 70% on each sale. Additionally, we have begun to think about being able to pass our legacy on with a minimum of tax consequence...
by convert949
Sat Apr 11, 2020 12:54 pm
Forum: Investing - Theory, News & General
Topic: Your Investment Adviser’s Dirty Secret
Replies: 77
Views: 11399

Re: Your Investment Adviser’s Dirty Secret

Excellent article. Thank you. +1... As they say... "I represent that remark"! Having been a Boglehead and managing my own for more than 10 years, I offer 3 observations: 1. Rick is right. Complexity sells and therefore attempts to convince the average Joe that he can't do it on his own and/or that the advisor can offer superior returns to what one could achieve without their help. 2. My "Come to Jack" moment came in 2008 when I realized that "I" had to take on more risk in order to get the same result due to fees. He didn't... Being somewhat risk averse, (60 and retired), that became my value judgement. Less risk, same returns. 3. Relative to the emotional value of a good advisor, I have found that there is a ...
by convert949
Thu Apr 02, 2020 7:15 am
Forum: Personal Finance (Not Investing)
Topic: Re-titling I Bonds to a Revocable Trust
Replies: 13
Views: 1120

Re: Re-titling I Bonds to a Revocable Trust

Followup... This is the TD response to my email for acceptable forms for a signature guarantee...

ACCEPTABLE CERTIFICATIONS:

· Signature/endorsement guarantee stamp/seal

· Medallion stamp (must be accompanied with a live signature of the officer)

· Corporate stamp/seal

· Issuing/paying agent stamp/seal including name, location, and 4-digit identification number

· "Paid" Bond Stamp used by financial institutions for the redemption of U.S. Savings Bonds

Treasury Services
[THREAD ID:1-2NASLGC]

Thanks as always for your help and advice! :sharebeer
by convert949
Mon Mar 30, 2020 5:50 am
Forum: Personal Finance (Not Investing)
Topic: Re-titling I Bonds to a Revocable Trust
Replies: 13
Views: 1120

Re: Re-titling I Bonds to a Revocable Trust

Thanks for all your help. I will reach out to them this week...
by convert949
Sun Mar 29, 2020 1:56 pm
Forum: Personal Finance (Not Investing)
Topic: Re-titling I Bonds to a Revocable Trust
Replies: 13
Views: 1120

Re: Re-titling I Bonds to a Revocable Trust

I did this a while ago and it went smoothly. After indicating the bonds to transfer and the TD account, a form was printed. The form needed a signature guarantee. It took a couple of weeks to see the transferred bonds in the account transferred to after mailing in the form. I got a confirmation email from Treasury Direct that the bonds were in the transferred account as well as a warning email that I should not buy more than $10,000 bonds per year or I would be barred from buying more bonds. I assume the second email was an automatic reply when bonds in the account and the transferred bonds were bought in the same year. Both accounts had the same SS. Not sure if it is more work to change the name of an account or just open a new trust acco...
by convert949
Sun Mar 29, 2020 11:43 am
Forum: Personal Finance (Not Investing)
Topic: Re-titling I Bonds to a Revocable Trust
Replies: 13
Views: 1120

Re: Re-titling I Bonds to a Revocable Trust

J295 wrote: Sun Mar 29, 2020 11:39 am We have iBonds in our individual names, and I can’t recall… Are they subject to a transfer on death designation? If so, perhaps a easier method would be to designate the trust as the TOD beneficiary.
Thought of that but it was discouraged by the Estate Attorney we are working with to re-state our trusts. Will ask why when we meet this Thursday...
by convert949
Sun Mar 29, 2020 10:59 am
Forum: Personal Finance (Not Investing)
Topic: Re-titling I Bonds to a Revocable Trust
Replies: 13
Views: 1120

Re: Re-titling I Bonds to a Revocable Trust

I have spent a fair amount of time online on Treasury Direct and Googling to try to find out how to change the ownership of I Bonds from individual name to a Revocable Trust. DW and I each have both individual and entity accounts and have been advised to transfer the individual bonds to the trusts for estate planning purposes. There are clear instructions for paper bonds but not for TD accounts. I have seen Bogleheads refer to the transfers but cannot seem to find any info on the how-to. Thanks in advance for your help and advice. Paper or electronic? The steps are different. Here are instructions from the official source: For paper bonds https://www.treasurydirect.gov/indiv/planning/plan_estate_trustform_reissue.htm For electronic bonds h...
by convert949
Sun Mar 29, 2020 7:38 am
Forum: Personal Finance (Not Investing)
Topic: Re-titling I Bonds to a Revocable Trust
Replies: 13
Views: 1120

Re-titling I Bonds to a Revocable Trust

I have spent a fair amount of time online on Treasury Direct and Googling to try to find out how to change the ownership of I Bonds from individual name to a Revocable Trust. DW and I each have both individual and entity accounts and have been advised to transfer the individual bonds to the trusts for estate planning purposes.

There are clear instructions for paper bonds but not for TD accounts. I have seen Bogleheads refer to the transfers but cannot seem to find any info on the how-to. Thanks in advance for your help and advice.
by convert949
Fri Mar 27, 2020 8:44 am
Forum: Investing - Theory, News & General
Topic: Why does anyone invest in international funds?
Replies: 306
Views: 24878

Re: Why does anyone invest in international funds?

I don’t, partly due to poor performance and confidence issues with international and partly because the two smartest investors I know, Jack Bogle and Warren Buffett, said I don’t need to. Hmmm... What has impressed me in this experience of the past few weeks is that after several years of the "fans of international" saying "just wait, international will outperform", the truth is that they have lost nearly as much as US equities since this started after not performing well for the past several years. It took all of one week for my last purchase of Total International Stock Index (2016) to go negative. I purchased it as the Vanguard Planner said I needed more. I have sold it to take advantage of TLH and purchased VTSAX wi...
by convert949
Fri Mar 20, 2020 9:53 am
Forum: Personal Finance (Not Investing)
Topic: Trust as beneficiary of SEP IRA under new rules
Replies: 6
Views: 336

Re: Trust as beneficiary of SEP IRA under new rules

bsteiner wrote: Fri Mar 20, 2020 9:43 am
convert949 wrote: Fri Mar 20, 2020 8:39 am ...
After your latest reply, I did go back and check and indeed, the current beneficiary designation is to the "trustee of the xxx revocable trust". Can you explain what would happen in that circumstance?
...
It might be just fine. But there are a bunch of possible issues that might or might not arise. Rather than discussing them, why not just leave it to the beneficiaries of the revocable trust.
Good idea! Keep it simple. Thanks again for helping me sort this out...

Bob
by convert949
Fri Mar 20, 2020 8:39 am
Forum: Personal Finance (Not Investing)
Topic: Trust as beneficiary of SEP IRA under new rules
Replies: 6
Views: 336

Re: Trust as beneficiary of SEP IRA under new rules

You wouldn't leave it to "our trusts." You might leave it to trusts for your children under your Wills or revocable trusts. Probating a Will in Florida isn't particularly difficult, expensive or burdensome, so if you were starting from scratch absent some particular reason for doing so you probably wouldn't create revocable trusts. (The most common reason is that Florida requires that a personal representative be either a relative or a Florida resident, and a revocable trust is a workaround for someone who wants to have someone who isn't a relative or a Florida resident act as personal representative.) But if you already have various assets in the trusts, it's probably easier to keep them and just amend (or restate) them. Current...
by convert949
Thu Mar 19, 2020 1:25 pm
Forum: Personal Finance (Not Investing)
Topic: Trust as beneficiary of SEP IRA under new rules
Replies: 6
Views: 336

Re: Trust as beneficiary of SEP IRA under new rules

You wouldn't leave it to "our trusts." You might leave it to trusts for your children under your Wills or revocable trusts. Probating a Will in Florida isn't particularly difficult, expensive or burdensome, so if you were starting from scratch absent some particular reason for doing so you probably wouldn't create revocable trusts. (The most common reason is that Florida requires that a personal representative be either a relative or a Florida resident, and a revocable trust is a workaround for someone who wants to have someone who isn't a relative or a Florida resident act as personal representative.) But if you already have various assets in the trusts, it's probably easier to keep them and just amend (or restate) them. Current...
by convert949
Thu Mar 19, 2020 7:29 am
Forum: Personal Finance (Not Investing)
Topic: Trust as beneficiary of SEP IRA under new rules
Replies: 6
Views: 336

Trust as beneficiary of SEP IRA under new rules

Good Morning Bogleheads, DW and I are re-doing our wills and trusts as we have become Florida residents and our current documents were developed in another state. We had previously listed our trusts (individual) as the beneficiary but was told by our Florida attorney that the rules have changed since the 2018 Tax Bill. She indicated that we could create pass through trusts for the SEP IRA's but the cost would outweigh the benefits as the amounts are not huge ($100K combined) We do not have a great amount in either IRA as we purchased dual life immediate annuities with the bulk of the accounts a few years ago to provide a pension in retirement. As we are in a second relationship with hers and mine but no "ours", the trust beneficia...
by convert949
Sun Oct 06, 2019 10:40 am
Forum: Investing - Theory, News & General
Topic: Michael Kitces investment strategy -- opinions?
Replies: 48
Views: 5529

Re: Michael Kitces investment strategy -- opinions?

I like Kitces and I like Pfau. The Pfau quote: Retirement income expert Wade Pfau agreed that the strategy could be especially helpful for people retiring now, which could be one of the most difficult times to retire in history. "We are in uncharted waters," Mr. Pfau said. "We've never had the high valuations and the low interest rates at the same time." in my mind that would make the case for a liability matching portfolio more so than the rising equity glide path. +1... My wrinkle on that is keeping enough in safe money with duration matched to expected need to get through the "high expense" portion of retirement (travel, etc. while you are still able) and count on SS, annuities, Pensions (if you have one, I...
by convert949
Wed Sep 04, 2019 11:01 am
Forum: Investing - Theory, News & General
Topic: Updates: 60/40 VS 30/70 Allocation: Bernstein VS Ferri ? What Did You Do Post Pandemic 3/2020? or YTD 2022?
Replies: 263
Views: 45419

Re: 60/40 VS 30/70 "Center Of Gravity"@@ Allocation for Retirees ??? Bernstein VS Ferri ?? -- What Would You Do?

siamond wrote: Wed Sep 04, 2019 10:03 am
Tyler Aspect wrote: Tue Sep 03, 2019 4:16 pm My take of the typical investor in retirement is 50% stock / 50% bond. Leaning on the aggressive side would give you 60% stock / 40% bond, while the conservative side would be 40% stock / 60% bond. Each individual case varies.
Hear, hear. Some good solid common sense!
I would add to that a simple formula... Our IPS states "our plan will determine the asset allocation, not our asset allocation determine the plan". We define this as having safe money adequate to wait out the inevitable gyrations of equities (for us,15 years). Whatever that is, becomes our cash/bond portion. The rest is equities. Currently, we are 70, retired, 40/60 and sleeping just fine...
by convert949
Wed Aug 28, 2019 2:46 pm
Forum: Investing - Theory, News & General
Topic: I don't like Bonds because I
Replies: 31
Views: 3267

Re: I don't like Bonds because I

I guess I am OK to own bonds... I scored 100%! Thanks Bogleheads! 8-)
by convert949
Sat Jun 29, 2019 8:41 am
Forum: Personal Finance (Not Investing)
Topic: Lease vs Buying a Car
Replies: 84
Views: 10369

Re: Lease vs Buying a Car

I've always bought used ever since reading the book(s) millionaire next door/millionaire mind. I have a friend who's been leasing nice cars since I can remember. He's been cycling Benz, BMWs, Audis, etc. but that works for him coz he likes replacing his cars every few years. If you're considering it, check your lifestyle so if you feel like driving nice cars often and don't want to worry about maintenance and get the latest one always, leasing might be the better option. Having done both, I have seen first hand the advantages of each... when I had my business I always leased because the bookkeeping was easier. After selling the business, we purchased the same class of vehicle for cash (basic BMW models). When we went to trade those vehicle...
by convert949
Thu Jun 06, 2019 1:22 pm
Forum: Personal Finance (Not Investing)
Topic: Looking for Claims Experience with Riversource (Ameriprise) Long Term Care Insurance
Replies: 6
Views: 1897

Re: Looking for Claims Experience with Riversource (Ameriprise) Long Term Care Insurance

Good morning... As a former Ameriprise client, I have had Long Term Care Insurance on my wife and I since 2000. Some time ago, they stopped offering new policies. Each year, on the anniversary date of the policy I have received an increase in the premiums that up until now have been reasonable. My wife and I are now 70 and consider this coverage a key part of our wealth preservation strategy. I recently had an acquaintance who has been dealing with Riversource on behalf of an aging parent who after paying the required premiums for many years is having extreme difficulty getting claims paid. Based on his experience, I have perused reviews on line and found them to be almost universally poor. I am aware that most who responds to these thread...
by convert949
Thu Jun 06, 2019 8:06 am
Forum: Personal Finance (Not Investing)
Topic: Looking for Claims Experience with Riversource (Ameriprise) Long Term Care Insurance
Replies: 6
Views: 1897

Looking for Claims Experience with Riversource (Ameriprise) Long Term Care Insurance

Good morning... As a former Ameriprise client, I have had Long Term Care Insurance on my wife and I since 2000. Some time ago, they stopped offering new policies. Each year, on the anniversary date of the policy I have received an increase in the premiums that up until now have been reasonable. My wife and I are now 70 and consider this coverage a key part of our wealth preservation strategy. I recently had an acquaintance who has been dealing with Riversource on behalf of an aging parent who after paying the required premiums for many years is having extreme difficulty getting claims paid. Based on his experience, I have perused reviews on line and found them to be almost universally poor. I am aware that most who responds to these threads...
by convert949
Sun Mar 17, 2019 11:10 am
Forum: Investing - Theory, News & General
Topic: Are I Bonds like cash or bonds?
Replies: 16
Views: 1826

Re: Are I Bonds like cash or bonds?

I consider them "Cash Equivalents" for all of the reasons previously stated. My IPS states that I maintain 20% of our investable assets in Cash and Cash equivalents so along with MM accounts, CD's, etc., I bonds are included.

For the purposes of cash flow, I consider them intermediate bonds as it is disadvantageous to cash them prior to the 5 year mark. In real life, I will likely ignore them knowing that they will always be worth at least what I paid for them (even if deflation occurs) and exist as an absolutely safe part of our portfolio with the same purchasing power as when they were acquired (or, maybe a little more). :beer
by convert949
Wed Feb 27, 2019 8:17 am
Forum: Investing - Theory, News & General
Topic: Could Vanguard be right about International Bonds?
Replies: 41
Views: 7312

Re: Could Vanguard be right about International Bonds?

The term "necessary" is what derails the conversation. If course they aren't necessary. Neither are stocks. The right question is whether or not it adds anything of value to an otherwise diversified portfolio. Even if yes, one can still choose not to include them for whatever reason. I think they are probably beneficial, but the benefit is minor enough not to care about. Thank you all for your comments... I realize that the short period doesn’t justify any conclusions unless followed by a more complete evaluation. My takeaway from the comments is that it would probably not help, nor hurt to have some. I would of course, prefer there to be some benefit to adding them in exchange for the added complexity. The back story is that I h...
by convert949
Tue Feb 26, 2019 7:13 am
Forum: Investing - Theory, News & General
Topic: Could Vanguard be right about International Bonds?
Replies: 41
Views: 7312

Could Vanguard be right about International Bonds?

I know that the considered opinion of the board is that International Bonds are not necessary. I just recently reviewed a suggested financial plan provided by a Vanguard Planner about 2 years ago that suggested including International Bonds for their diversification benefits. I couldn't help but notice the following in my updated review of the plan: Returns are as of 12/31/2018 VBTLX (Van Total Bond Mkt Index Adm) Duration 6 years 1 year -0.03% 3 year 2.03% 5 year 2.46% VTABX (Van Total Intl Bond Index Adm) Duration 7.9 years 1 year 2.93% 3 year 3.32% 5 year 3.94% From my 30K ft. view, it seems that the returns do compensate for the additional risk created by duration differences (using the Larry Swedroe 20 basis point per year comparison) ...
by convert949
Wed Feb 06, 2019 10:20 am
Forum: Investing - Theory, News & General
Topic: If you are old, why bother with rebalancing!!?
Replies: 115
Views: 11544

Re: If you are old, why bother with rebalancing!!?

HomerJ wrote: Tue Feb 05, 2019 12:51 pm
But I will admit that I do not rebalance any more in down markets. If stocks drop, I will pull from bonds, and wait for stocks to recover. I will not sell bonds and buy stocks.
+1... 70 this year... I do not rebalance in either direction just draw from what is up. We use withdrawals to maintain a constant AA of 40/60. This results in 20 years of safe money for now.
by convert949
Mon Nov 19, 2018 7:03 am
Forum: Investing - Theory, News & General
Topic: Salable assets part of Asset Allocation?
Replies: 2
Views: 372

Re: Salable assets part of Asset Allocation?

My thought is that those "hard" assets allow you to take more risk than if you didn't have them. Just keep in mind that in extreme times they may be hard or impossible to sell or would sell for a large discount. They have liquidity issues just when you don't want them to. Their enjoyment is a positive their expense can be a negative. I am looking to sell our house in the next few years (I'm 70). I don't need the space, the expense and/or labor to maintain, and my heirs don't need the hassle of selling. My house is probably worth 400+k and I don't count it in my allocation decision which is currently 43/57. By the way I also roughly follow the 20+ years in "safe" fixed income but allocate the rest 67/33. Thanks, Dandy......
by convert949
Sun Nov 18, 2018 10:36 am
Forum: Investing - Theory, News & General
Topic: Salable assets part of Asset Allocation?
Replies: 2
Views: 372

Salable assets part of Asset Allocation?

I am familiar with the boards feelings on whether to include (or not include) the value of SS and Pensions (earned or purchased in the form of Immediate Annuities) as a part of one's asset allocation. What I have not seen discussed, is whether to include the value of salable assets (not your primary residence). I am a proponent of putting ~20 years of "safe" money in cash and bonds and the rest into equities. Having had a recent health scare, I have had cause to reconsider the role of a second home and boat in my financial and estate planning. The combined value of these salable assets is currently ~ $600K. I expect it to stay approximately at that level over time as I believe that the value of the real estate will appreciate at a...
by convert949
Sat Sep 15, 2018 8:15 am
Forum: Personal Finance (Not Investing)
Topic: The Boglehead is anti-entrepreneur?
Replies: 79
Views: 8527

Re: The Boglehead is anti-entrepreneur?

Interesting question. Thanks for posting. My sense is that BH as a group are rather cautious. Of course, that doesn’t mean everyone in the group is cautious or is cautious and all aspects of their life. I enjoy reading about those of us here that have taken a more entrepreneurial or otherwise less cautious route. Good point although it could be argued that risk taking in ones career (like starting a business) is different in that you have some knowledge (and therefore control) over your ability to succeed. The opposite is true of investing where we take risk based on our ability, desire and need but markets are out of our control. As an entrepreneur, I find myself to be just the opposite in that while I took many risks in my career, I am a...
by convert949
Sat Sep 15, 2018 7:00 am
Forum: Personal Finance (Not Investing)
Topic: The Boglehead is anti-entrepreneur?
Replies: 79
Views: 8527

Re: The Boglehead is anti-entrepreneur?

Would you advise a young person in their 20s or 30s, inclined to the entrepreneurial life, to go for it or stick to the Steady Eddie approach, and why? If someone were an entrepreneur I'd think they'd know it by their late twenties or early thirties. I can't imagine a born entrepreneur paying attention to advice, anyway. It seems to me that part of what it takes to be an entrepreneur is to know it without someone else having to tell you. ... Most people aren't entrepreneurs. If the question is "how should a non -entrepreneur invest for retirement? Should a mass affluent investor, saving money out of salary, listen to people who can get them in on a local real estate deal? Try to pick the stock of the next Apple, because nobody is goin...
by convert949
Fri Aug 17, 2018 9:30 am
Forum: Investing - Theory, News & General
Topic: It's not enough to mumble "Stay the Course"... INT'L Investing has been a disaster!
Replies: 1247
Views: 143070

Re: It's not enough to mumble "Stay the Course"... INT'L Investing has been a disaster!

It’s convinced me that people with different investment timelines do and should have different opinions on this particular subject. I wouldn’t hesitate to have VT as my line stock holding, if I were 30. I am most certainly not 30. Why does age make a difference in holding international equities? Because for those of us who are old, our time horizon probably isn't long enough to see the international markets recover from their current struggles. Also, as a retiree I have realized that I spend my money in dollars and while I hold International, at 25% of equities, I have closer to Bogles recommendation than Vanguards... (as per my IPS and I am sticking with it...) On a general point, I do find it difficult when members (and Vanguard) offer &...
by convert949
Thu Jan 04, 2018 7:25 am
Forum: Investing - Theory, News & General
Topic: Hitting The Sell Button
Replies: 233
Views: 37177

Re: Hitting The Sell Button

Despite crying in my root beer all weekend over a portfolio return of "only" 15.01%, I can't help but notice the tremendous power of this bull market. Since July 2013, I have been mildly rebalancing from stocks to bonds. It seems like all I have been doing has been hitting the "sell" button, selling stocks in wave after wave as the market advances. Sort of like the hedge growing faster than you would have ever dreamed possible and it seems like you have to trim it back almost monthly. A nice problem to have but if I was 35 years old, I would simply be enjoying the ride. At 58, it seems to be like that laurel hedge growing out of control, a big chore to maintain. This is because I am concerned about controlling my risk a...