Gem: "The Bogleheads' Guide to Retirement Planning"

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Gem: "The Bogleheads' Guide to Retirement Planning"

Postby Taylor Larimore » Thu Oct 08, 2009 3:10 pm

Hi Bogleheads:

This is a community book written by Boglehead forum experts in various aspects of retirement planning. All proceeds go to the National Constitution Center in Philidelphia to honor our friend and mentor, Jack Bogle, who was Chairman for seven years. These excerpts are a small sample of the gems inside its cover:

"The Bogleheads band together to help and encourage all comers to sort through the noise in the persuit of their financial goals. Collectively, the group provides a vast gold mine of wisdom and experience." (Jack Bogle)

"Bogleheads.org is now the largest not-for-profit investment site on the Internet."

"Early retirement planning should begin when you have your first full-time job."

"Without first developing a plan, you begin the journey into your future by looking in the mirror."

"At the beginning, it is the amount that you put into a plan that counts, rather than the return of the investment in the plan."

"When you get started with our investing plan is much more important than what you actually buy."

"Automating your investing means you never have to ask about market conditions."

"Compound growth is your greatest ally when it comes to reaching your investing goals."

"Investing is not nearly as difficult as it looks. -- Simplicity is the master key to investment success"

"Diversify, diversify, diversify. Construct a well-balanced portfolio that owns an appropriate mix of stocks and bonds."

"Performance comes and goes, and yesterday's leaders are likely to be tomorrow's laggards."

"In equity funds, past returns tell us nothing about what the future holds."

"Avoid the salesperson, invest directly with the fund company in pure no-load funds, and keep all of your investment money working for you."

"You rarely, if ever, know something the market does not."

"Self-funded retirement accounts place the responsibility for preparing for retirement squarely on the shoulders of the individual."

"Although Bogleheads tend to be do-it-yourself people, some issues do require the help of a professional."

"Retirement should be viewed as a third phase in life, potentially equal in duration to the earlier development and full-time work phases of life."

"A steady source of income is critical to a happy retirement."

"No matter what your risk tolerance is, your asset allocation should become more conservative as you approach retirement age."

"Everyone should have a written plan that lays out goals for retirement living and the financing that will support them."

"Focus on what brings happiness to your life, and consider your financial resources as a means to that end."

"Taxes erode retirement savings more than any other expense."

"Hold the least tax-friendly investments in your tax-advantaged accounts."

"Taxes are complicated, confusing, frustrating, and a necessary evil."

"At a minimum, you should obtain a copy of Your Federal Income Tax for Individuals, Publication 17."

"Make your fund purchase (in a taxable account) after the distribution date rather than just before it."

"Joint accounts are a great option for ensuring that assets are immediately available to a surviving spouse, child, or partner."

"Trusts can be tricky business. Don't try to write one on your own."

"Buying and selling an ETF incurs commissions and bid/ask spreads on each transacitons."

"If you hold shares for less than 61 days, the dividends you receive will not be qualified, and you'll pay a higher tax rate on them."

"Perhaps the most tax-efficient domestic stock holding for taxable accounts is a total stock market index fund."

"Vanguard's FTSE All-World ex-US (VFWIX) and Vanguard's Total International Stock Market (VGTSX) funds are two of the best options if you're going to hold an internatinal stock fund in your taxable account."

"Low-cost target retirement funds such as those from Vanguard are an excellent way to create an extremely simple portfolio."

"The sooner you need the money, the larger the percentage of cash and bonds you should hold."

"Most CDs are not suitable for an emergency fund because you do not have immediate access to the money (without penalty)."

"You should first take advantage of all of your tax-advantaged options before investing in a taxable account."

"In investing, you get what you don't pay for."

"The Roth IRA is perhaps the greatest gift ever given to the American investor."

"Although a case can still be made for a small business to use a SIMPLE IRA, there is no reason for a sole proprietor to do so."

"You cannot convert an inherited traditional IRA to a Roth IRA, unless you inherited it from your spouse."

"If eventually used to pay for health care, an HSA is better than a traditional or Roth IRA."

"Money that you intend to leave to heirs should be in a Roth IRA, if possible."

"If you have low income, take advantage of the retirement savings credit to further increase your savings."

"Count yourself lucky if you still have a defined benefit plan, but also keep in mind that it may go away in the future."

"Because it is essentially free money, 401(k) matching is one of the best investment options anywhere."

"Unfortunately, a large number of 401(k) plans have truly atrocious investment options with fees 10 or 20 times higher than is reasonable."

"Funds selected by 401(k) providers tend to highlight past performance numbers, which are not at all predictive of future returns."

"Some of the very worst plans seem to be 403(b) plans for teachers."

"Many 457 plans have problems similar to 401(k) and 403(b) issues."

"If you find yourself in a bad plan, contact the trustees and state your discontent."

"Roth 401(k)s are particularly well suited to younger workers who expect to be in a higher tax-bracket at retirement."

"If your plan offers Fidelity funds, stick to the Spartan funds or the Four-in-One, which are indexed funds with costs comparable to Vanguard's."

"If you're selecting bond funds from the (government) TSP, you should use the G fund for most of your bond holdings."

"When you switch employers, you can roll over your defined contribution account into an IRA that gives you complete control of the funds you want to use."

"The word annuity means any regular series of payments, and many different financial products are called annuities."

"Variable annuities or equity-indexed annuities are products to be avoided."

"If you can support yourself entirely from interest and dividends without invading principal, then you do not need to think about an SPIA (Single Premium Immediate Annuity)."

"The usefulness of an annuity should be measured by how well it protects against longevity risk."

"Several experts believe that age 65 is the youngest someone should be before using an immediate annuity."

"Annuities are backed by state guaranty associations to a point, and also by the strength of the insurer."

"Ultimately, the widest diversification possible is simply to own every asset in the particular market."

"Rebalancing means adjusting your portflio to restore its original target allocation."

"Rebalancing also has the added advantage of forcing you to buy low and sell high."

"A straightforward time frame to use for checking if your allocation is out of whack is once a year."

"Rather than rebalancing by the calendar, many people make changes only when their portfolio allocations are off by a certain percentage."

"The method for doing rebalancing really doesn't matter as long as you are consistant."

"Each time you need to withdraw money from your investments, simply look at your asset percentages and take the money out of the one that is overweight."

"Trading costs are minimized by low-turnover funds such as stock index funds."

"A low expense ratio is the single most important reason a fund outperforms similar funds."

"There is a strong tendency for poor performance to follow good performance."

"Instead of chasing performance, simply own the entire market through an ultra-low-cost index fund, and hold for the long term."

"Trying to time your investments by switching frequently between different funds is also a losing strategy. You can guess correctly some of the time, but that does not prove you to be smart or skilled, just lucky."

"Keep investing simple and you will be wealthier and happier for it."

"For the foreseeable future, the viability and benefits of Social Security will keep playing an important part in determining how early you can afford to retire and how comfortable you'll live in retirement."

"Spend some time before you retire: Planning out your budget, estimating changes to your spending, and analyzing your housing situation, asset allocation, investments and taxes.

"Because Medicare does not begin until 65, this becomes the de facto retirement age for many."

"The question isn't at what age I want to retire, it's at what income."

"If you save early and often, live below your means, and do not go off on a rock star lifestyle, there's no reason you should not be able to retire early, on your own terms."

"At any age, you can begin taking withdrawals from your IRA by initiating a five-year or longer program of substantially equal periodic payments (SEPP) and continuing these payments until your turn 59 1/2."

"Reverse mortgages should be a last resort for providing income."

"Life happens. Even the most dogmatic, organized planner cannot predict all life events."

"Your greatest asset is your ability to earn a living for yourself and your family."

"The three main events that can reduce or eliminate your flow of income are death, disability, and retirement."

"For younger breadwinners, term insurance is the only practical way to provide needed protection at affordable costs."

"Consider only policies that are noncancelable and guaranteed renewable."

"Because of an unlimited marital deduction, estate taxes often become due at the second death."

"If you are financially independent, you may not need any life insurance at all."

"Shopping for disability income insurance is complex and should probably be done with the help of a knowledgeable agent."

"A good insurance plan works hand in hand with a good retirement plan."

"The availability of health insurance and its costs and benefits very widely, and it is wise to learn as much as you can before choosing a plan."

"Medicare has four parts: Hospital insurance (Part A); Medical insurance (Part B); Medicare Advantage Plans (Part C); and Prescription drug insurance (Part D)."

"High-risk pools are available in over 30 states. These pools provide coverage for individuals who have serious medical problems and cannot qualify for other coverage."

"Emergency rooms are required by federal law to provide minimal care to all who seek it."

"A 2008 Cost of Care Survey shows the average annual cost of a private nursing home room to be more than $76,000."

"Taking the proper steps now to make sure that your family and financial asets are protected in case of tragedy brings a sense of peace."

"We believe that permanent life insurance should not be used as an investment."

"If you foresee a need for estate liquidity, you should consider life insurance as a way to help solve this problem."

"Insurance policy proceeds can stay out of the gross estate by ownership and beneficiary provisions, including the use of trusts."

"Bogleheads believe in doing the necessary research to learn enough to hold an intelligent conversation with an estate-planning attorney."

"The titling of property has a profound impact on how your assets are treated when you pass away."

"In many states, it is possible to establish an account as a pay on death or transfer account."

"A prenuptial is agreed to before marriage, and a postnuptial is agreed to after marriage."

"Most people will need a durable power of attorney, a designation of health-care surrogatte, perhaps a living will, and a last will and testament to meet their minimum needs."

"Don't delay. Death comes unexpectedly, and with death, most planning opportunities are foreclosed."

"A trust is an arrangement in which one party agrees to manage assets contributed by another party for the benefit of a third party."

"Many things can happen when one fails to plan for business succession, and most of them are bad."

"Planning today for sharing your wealth can save your heirs thousands of dollars in the the future."

"Check with the IRS or an estate-planning attorney before making any financial decisions about gifting. (In 2009 the annual exclusing to anyone was $13,000.)"

"Property acquired from a decedent receives a basis equal to the fair market value at the date of death or six months later."

"Money management and financial planning are two significantly different services that are often bundled together."

"Comprehensive financial planning covers many different fields, including savings strategies, taxation, diversification, investment selection, retirement, and estate planning. If you lack the time, temperament, or experience, then consider the services of a financial planner."

"Salespeople are rewarded if they can convince you to buy high-commission investments and trade them often. That is exactly the opposite of what you should be doing."

"Vanguard offers excellent educational materials on their web site and also provides personal portfolio advice."

"There are 56 different designations for financial advisors. Except for CFP and CFA, many of these designations are not meaningful."

"Risk and return are always related, regardless of what your adviser indicates."

"The more complex the product, the worse it is for you, and the better it is for the adviser."

"If you have any doubts about your financial plan or planner, you can ask the Bogleheads' forum members to comment on your plan."

"In the real world, people lose jobs, good health turns bad, more than half of marriages end in divorce, and other setbacks occur that can ruin a good retirement plan."

"When bad things happen to good people, it does not have to result in financial ruin."

"The divorce court divides a retirement plan by issuing a special order: a qualified domestic relations order (QDRO)."

"Certain assets, such as life insurance and IRA assets, pass to designated beneficiaries if you die. A divorce decree will not change the designations."

"The IRS can always seize money in IRA accounts regardless of state law."

"Even if you do not have the money to pay, always file your tax return on time (to avoid penalties).

"A 10,000 investment in Bogle's Folly (S&P 500 Index Fund) in 1975 was worth $252,000 on December 31, 2008."

"If there is a web site that bespeaks the Golden Rule, surely the Boglehead site is its paradigm" (Jack Bogle)
Last edited by Taylor Larimore on Thu Oct 08, 2009 3:25 pm, edited 1 time in total.
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Postby simba » Thu Oct 08, 2009 3:22 pm

Taylor - Thanks for the investment gems from the new book.

For those who haven't seen it - you can access all of Taylor's Investment gems on the Bogleheads wiki.
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Re: A Gem: "The Bogleheads' Guide to Retirement Plannin

Postby ddb » Thu Oct 08, 2009 3:28 pm

Taylor Larimore wrote:"Even if you do not have the money to pay, always file your tax return on time (to avoid penalties).


I think this one is backwards. It should read, "Even if you don't file your tax return on time, always make sure you pay (to avoid penalties)."

It would certainly be nice if we could file on time and pay later with no penalty!

- DDB
"We have to encourage a return to traditional moral values. Most importantly, we have to promote general social concern, and less materialism in young people." - PB
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Re: A Gem: "The Bogleheads' Guide to Retirement Plannin

Postby Hondo » Thu Oct 08, 2009 3:45 pm

By filing on time without payment you avoid the failure-to-file penalty, although you will have to pay interest.

ddb wrote:
Taylor Larimore wrote:"Even if you do not have the money to pay, always file your tax return on time (to avoid penalties).


I think this one is backwards. It should read, "Even if you don't file your tax return on time, always make sure you pay (to avoid penalties)."

It would certainly be nice if we could file on time and pay later with no penalty!

- DDB
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Re: A Gem: "The Bogleheads' Guide to Retirement Plannin

Postby HueyLD » Thu Oct 08, 2009 3:54 pm

ddb wrote:It would certainly be nice if we could file on time and pay later with no penalty!

O.k., I will file my tax return today and won't pay until the 22nd century and the government will assess no penalty on my offsprings. :)
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Re: A Gem: "The Bogleheads' Guide to Retirement Plannin

Postby Mel Lindauer » Thu Oct 08, 2009 4:00 pm

HueyLD wrote:
ddb wrote:It would certainly be nice if we could file on time and pay later with no penalty!

O.k., I will file my tax return today and won't pay until the 22nd century and the government will assess no penalty on my offsprings. :)


As Hondo pointed out, it's the failure to file penalty you won't get hit with.
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Re: A Gem: "The Bogleheads' Guide to Retirement Plannin

Postby Taylor Larimore » Thu Oct 08, 2009 4:04 pm

ddb wrote:
Taylor Larimore wrote:"Even if you do not have the money to pay, always file your tax return on time (to avoid penalties).


I think this one is backwards. It should read, "Even if you don't file your tax return on time, always make sure you pay (to avoid penalties)."

It would certainly be nice if we could file on time and pay later with no penalty!

- DDB


DDB:

The quote from the book is correct.

There is a failure-to-file penalty for taxpayers who don’t file their tax returns by April 15 and who owe taxes. Filing by the deadline allows taxpayers to avoid this penalty, even if they can’t pay all or some of their taxes by the deadline.


http://www.irs.gov/newsroom/article/0,,id=206246,00.html
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Re: A Gem: "The Bogleheads' Guide to Retirement Plannin

Postby ddb » Thu Oct 08, 2009 4:10 pm

ddb wrote:I think this one is backwards. It should read, "Even if you don't file your tax return on time, always make sure you pay (to avoid penalties)."

It would certainly be nice if we could file on time and pay later with no penalty!
Hondo wrote:By filing on time without payment you avoid the failure-to-file penalty, although you will have to pay interest.


In addition to interest, there is also a late-payment penalty (different animal from the late-file penalty).
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Postby Munir » Thu Oct 08, 2009 5:33 pm

The conventional, and correct wisdom, supports what Taylor said:

"Even if you do not have the money to pay, always file your tax return on time (to avoid penalties)."

Isn't the failure to file penalty worse than the late payment penalty?
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Postby HardKnocker » Fri Oct 09, 2009 6:00 am

Some good tips in there.

Regarding Taylor Larimore's list, you'd make a productive use of your time to read one article a day.
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Postby ddb » Fri Oct 09, 2009 11:34 am

Munir wrote:The conventional, and correct wisdom, supports what Taylor said:

"Even if you do not have the money to pay, always file your tax return on time (to avoid penalties)."

Isn't the failure to file penalty worse than the late payment penalty?


Depends. From this page

If you have a balance due on a late tax return, the IRS will calculate additional penalties and interest. There are three separate penalties:

Failure to File Penalty
Failure to Pay Penalty
Interest
Each is calculated differently. Let's take a look at each one.
Failure to File Penalty

The failure-to-file penalty is calculated based on the time from the deadline of your tax return (including extensions) to the date you actually filed your tax return. The penalty is 5% for each month the tax return is late, up to a total maximum penalty of 25%. The percentage is of the tax due as shown on the tax return. If your tax return is more than five months late, simply multiply your balance due by 25% to calculate your failure to file penalty.
Failure to Pay Penalty

The failure-to-pay penalty is calculated based on the amount of tax you owe. The penalty is 0.5% for each month the tax is not paid in full. There is no maximum limit to the failure-to-pay penalty. The penalty is calculated from the original payment deadline (the original April 15th filing deadline) until the balance due is paid in full.
Interest

Interest is calculated based on how much tax you owe. Interest rates change every three months. Currently, the IRS interest rate for underpayment of tax is 5% per year. The interest is calculated for each day your balance due is not paid in full.
IRS interest rates are variable and are set quarterly. For historical IRS interest rates, see this chart at TaxAlmanac.org.


So basically, if you pay in all taxes due on time, you can file your actual return whenever you want and there is no penalty (because failure-to-file penalty is calculated based on TAXES DUE, so no penalty if no taxes due).

- DDB
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Postby HueyLD » Fri Oct 09, 2009 11:43 am

So basically, if you pay in all taxes due on time, you can file your actual return whenever you want and there is no penalty (because failure-to-file penalty is calculated based on TAXES DUE, so no penalty if no taxes due).

ddb,

You've got it!! The IRS doesn't care about filing if the gov. owes you money. In fact, a lot of people missed out on the 3-year window to file and get their refunds. It is very unfortunate because they were the ones who could benefit the most by filing tax returns within the 3-year window.
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Postby Adrian Nenu » Fri Oct 09, 2009 12:35 pm

I did not see anything on risk of loss. Something like this would have been helpful:

Standard Deviation: Another term used throughout the industry and a new requirement for understanding by investors. It reflects the volatility of an investment per past history and is one of the major tools to compare the riskiness of one investment to another. The graph is the easiest way to understand. I have taken some liberties with the presentation to make it easier to comprehend. The height of the bell shaped curve represents the average return of the investment. As you can see by graph A, it is taller at a 10% return than graph B with a 7% return. But the real issue is the width of the curve. THE WIDER THE CURVE, THE MORE VOLATILITY. THE WIDER THE CURVE, THE GREATER THE RISK. Further, each graphs represents the dispersion around the mean. Say what? More simply, it means how mush the pluses and minuses were for the time frame selected. And the last restriction is that one standard deviation represents the pluses and minuses that could be expected in 68% of the time. Look at graph A and the numbers for stocks over the last 50 years (roughly). The stock market has returned an average of 10% per year but in 68% of the time, the return has been minus 20% and plus 20%. That means that you could have gotten as low as -10% (10% average minus 20%= -10%) or as high as 30% (10% + 20% = 30%). That's a big swing- and remember it was even greater if you look at the WHOLE graph which is wider still.

NO GRAPH

Let me ask this question? Which investment do you want to use? Before answering there are two significant issues that need to be addressed- one commented upon in many magazine, the second rarely addressed by anyone. Both are equally important. The first involves statistics over a period of time. Simply stated, the longer you hold an investment, the lower becomes its standard deviation (asset rates of returns over successive holding periods are independent). The good and bad years supposedly cancel out. This standard deviation can be determined by dividing the standard deviation by the square root of the number of years held. So a 20% standard deviation held for five years shows a 8.95% (20%/2.24) standard deviation. Everything seems so much better when you see that. Supposedly you can then expect the same average return of 10% but only a 8.94% downside drop in 68% of the time. That's sure a lot better. That sure what is presented in any of the articles. That's fine and dandy and it's a lot easier to swallow a 8.94 % movement than it is a 20% movement. If I go to 10 years, the deviation drops to 6.32%. why this looks better and better. At 20 years, it's only 4.72%- probably within the acceptable risk range of most people.



What is never discussed is the fact that what happens if there is a big loss that actually DOES happen in the initial ownership of the assets. What happens if there is a one time standard deviation drop in the first five years? A real mess, that's what. In order to determine what actually goes on, you take, for example, the projected average and multiply by the high and low standard deviation to the power of the number of years. $100 x (1.1894) 5th or $238 on the plus side or the low side $100 x (1.101) 5th power = $105 on the bottom. If the returns simply average the overall 10%, you would get $162. If things really went great, you could get as high as $238. But if things went bad, you only get $105. That's about 35% less money than you expected. Can you live on 35% less money than expected???????



Bottom line: Time does lower standard deviation. But the longer you hold an investment, the more money you are putting at risk for something that actually can go wrong.



The best example of this relates to insurance companies and natural disasters. As an insurance company insures more homes across the United States, the odds of something devastating happening to all the homes or businesses is relatively remote. The risk is acceptable. But the hurricanes in Florida, two 500 year floods in the middle west in back to back years and the earthquakes in California all happened at "once". Insurance companies have been devastated by the losses. The same thing could happen to you IF YOU WERE NOT PAYING ATTENTION to your investments. The big difference is that stocks and bonds are liquid. If a depression is forthcoming, astute should and COULD be out of the market well before disaster strikes.



http://efmoody.com/investments/risks.html

Adrian
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Bogleheads Guide and "risk"

Postby Taylor Larimore » Fri Oct 09, 2009 1:15 pm

Hi Adrian:

I did not see anything on risk of loss.


The excerpts I quoted represent less than 1% of what's in the book. In fact, there is much in our new Bogleheads' Guide to Retirement Planning about risk as the Index discloses:

Risk assessment tools, (page) 143
Risk-averse investors, 93,106
Risk-free funds, 87
Risk-free rate of return, 193
Risk management, 120,132,141-143
Risk minimization stratgies, 6
Risk profile, 120
Risk-return analysis, 141
Risk-reward analysis, 122-123, 134
Risk tolerance, 8,91,106,141-142, 288, 299


I think you would find it worthwhile to buy the book. All proceeds go to charity.
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Postby Adrian Nenu » Fri Oct 09, 2009 1:19 pm

I have not received my copy yet but am eager to read it.

Adrian
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Postby cinghiale » Fri Oct 09, 2009 4:28 pm

Taylor,
Thanks once again for your list of highlights. We all know that this does not serve to summarize or encapsulate the Bogleheads' Guide, only to provide a nice whiff (or, perhaps a quick sample) of the cooking. I'm looking forward to setting aside the time and digging in.
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Postby TJAJ9 » Sun Oct 11, 2009 11:39 am

I just ordered my copy from Amazon. I got it especially for my father, but I will also read it and post a review on Amazon when I finish. 8)
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Postby zeusrock1 » Sun Oct 11, 2009 12:15 pm

I just got my copy from Amazon, so far it looks great, can't wait to get more into it. Between the Bogleheads investment book, this retirement book and this forum, I have all I need.

I'm also 25+ years until retirement, but I'm sure I'll find it very useful. I'll post a review on Amazon when I finish reading.
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Postby Mel Lindauer » Sun Oct 11, 2009 2:22 pm

Thanks to both TJAJ9 and zeusrock1 for those promised amazon.com reviews. Hope you enjoy the books.
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Postby dkdoy » Sun Oct 11, 2009 2:37 pm

Thanks for the great book . I have already put my 5 star review on Amazon.
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Postby Mel Lindauer » Sun Oct 11, 2009 2:45 pm

dkdoy wrote:Thanks for the great book . I have already put my 5 star review on Amazon.


Thank you for that, dkdoy.
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Bogleheads' Guide to Retirement Planning Reviews

Postby Taylor Larimore » Sun Oct 11, 2009 2:47 pm

dkdoy wrote:Thanks for the great book . I have already put my 5 star review on Amazon.


Thanks, dkdoy:

The more honest reviews we get, the faster we spread the Boglehead Philosophy and the better we support a worthy charity.
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new book

Postby Russ Nelson » Sun Oct 11, 2009 7:31 pm

I just bought a copy at a B & N in Seattle. Very cool to see one's own name and thought under Pearls of Investing. Thanks so much. Thanks to all of the authors for your tremendous work here.
This will be an excelent reference and tool to use for a very long time! Best of luck to the charity.

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Re: new book

Postby Mel Lindauer » Sun Oct 11, 2009 7:41 pm

Russ Nelson wrote:I just bought a copy at a B & N in Seattle. Very cool to see one's own name and thought under Pearls of Investing. Thanks so much. Thanks to all of the authors for your tremendous work here.
This will be an excelent reference and tool to use for a very long time! Best of luck to the charity.

Russ


Hi Russ:

Hopefully you'll post a revew on Amazon.com when you finish the book. Hope you enjoy it!
Best Regards - Mel | | Semper Fi
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Postby Russ Nelson » Sun Oct 11, 2009 7:54 pm

Hi Mel,
Yes, I will definitely post an honest review at Amazon in the next couple of weeks. Thanks for your direct help in the past. I am very happy with my Mid Cap index investment this year!

Russ
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Postby Mel Lindauer » Sun Oct 11, 2009 8:29 pm

Russ Nelson wrote:Hi Mel,
Yes, I will definitely post an honest review at Amazon in the next couple of weeks. Thanks for your direct help in the past. I am very happy with my Mid Cap index investment this year!

Russ


Yeah, Russ, Mel's Unloved Mid-Caps are doing just fine, aren't they?
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Postby TranceLordSnyder » Sun Oct 11, 2009 9:33 pm

I'm interested in reading the book, but being so far from retirement (25 or more years), do you think it is still worth buying and reading?
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Postby tetractys » Sun Oct 11, 2009 10:10 pm

I'm happy to say I was just notified that Seattle Public Library has acquired 7 copies, even with all the budget cuts. Would it be too far out to imagine the librarians who decide what books to buy proceeded with the idea that the extra savings retirees gain from reading the book will help support more library funding in the future?

3rd in line, so a fresh copy will be waiting for me. -- Tet :D
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Postby Mel Lindauer » Mon Oct 12, 2009 8:27 am

TranceLordSnyder wrote:I'm interested in reading the book, but being so far from retirement (25 or more years), do you think it is still worth buying and reading?


Are you planning for your retirement? The book is about "Retirement Planning", not retirement living.
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Postby TJAJ9 » Mon Oct 12, 2009 2:33 pm

Mel, I'm sure I'll enjoy it.

It shipped out today--I estimate I'll probably get it by Wed. I look forward to reading it.
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Postby Mel Lindauer » Mon Oct 12, 2009 3:26 pm

TranceLordSnyder wrote:I'm interested in reading the book, but being so far from retirement (25 or more years), do you think it is still worth buying and reading?


If you haven't read it yet, you may want to start with our first book The Bogleheads' Guide to Investing. It's available at most libraries.
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Postby TranceLordSnyder » Mon Oct 12, 2009 8:36 pm

Mel Lindauer wrote:
TranceLordSnyder wrote:I'm interested in reading the book, but being so far from retirement (25 or more years), do you think it is still worth buying and reading?


If you haven't read it yet, you may want to start with our first book The Bogleheads' Guide to Investing. It's available at most libraries.


I did read The Bogleheads' Guide to Investing, and I'm about 60% through The Four Pillars. I'm sure I can pick another good book off of the list here.
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Postby Mel Lindauer » Mon Oct 12, 2009 9:32 pm

TranceLordSnyder wrote:
Mel Lindauer wrote:
TranceLordSnyder wrote:I'm interested in reading the book, but being so far from retirement (25 or more years), do you think it is still worth buying and reading?


If you haven't read it yet, you may want to start with our first book The Bogleheads' Guide to Investing. It's available at most libraries.


I did read The Bogleheads' Guide to Investing, and I'm about 60% through The Four Pillars. I'm sure I can pick another good book off of the list here.


Bill Bernstein's The Four Pillars is a great book. I'm sure you'll enjoy it.
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Postby Peter Foley » Mon Oct 12, 2009 10:01 pm

Trance - I'm about 3/4th the way through the book and am also a chapter author. While there are a few chapters that would not be of interest to many young investors - withdrawal strategies and estate planning come to mind - many chapters are what I would deem "must read" for younger investors. For example, while the plan that young investors have for their life in retirement may not be carved in stone, unless they start saving early, make good lifestyle choices, and invest wisely, they may not have the resources to live the retirement life that they will someday want. This dichotomy is discussed in some detail in the first chapter.

TLR
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Postby dwela » Thu Oct 15, 2009 5:18 am

Just ordered my copy. Thanks for publishing this.
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Postby TJAJ9 » Thu Oct 15, 2009 10:46 am

I got mine yesterday. I've browsed through it and just started reading from the beginning. It looks quite informative.
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Postby Bongleur » Fri Jan 07, 2011 6:31 am

>
In order to determine what actually goes on, you take, for example, the projected average and multiply by the high and low standard deviation to the power of the number of years.

$100 x (1.1894) 5th or $238 on the plus side
or the low side $100 x (1.101) 5th power = $105 on the bottom.
>
TYPO SHOULD BE 1.0105 ^5
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