Search found 5983 matches

by Call_Me_Op
Sun May 29, 2016 7:20 am
Forum: Investing - Help with Personal Investments
Topic: Bonds in Taxable if Taxable Needs the Safety?
Replies: 15
Views: 1143

Re: Bonds in Taxable if Taxable Needs the Safety?

Don't let the tax tail wag the investing dog. If you need fixed-income in taxable, any combination of Savings Bonds, treasuries, CD's, or high-grade municipal bonds will be fine.
by Call_Me_Op
Thu May 26, 2016 6:26 am
Forum: Investing - Theory, News & General
Topic: Can I just let my money compound now?
Replies: 51
Views: 5796

Re: Can I just let my money compound now?

So...I'm 25 with a little over 100k saved and in a target fund. Is it safe to say that I could potentially not save another dime and be in decent shape in 30 years? Not saying I'm going to do this, just curious. Let's assume that you're going to earn 5% annually and inflation runs at 2% annually. I...
by Call_Me_Op
Wed May 25, 2016 6:24 am
Forum: Investing - Theory, News & General
Topic: Bernstein says emergency fund part of your "asset allocation?"
Replies: 59
Views: 4723

Re: Bernstein says emergency fund part of your "asset allocation?"

My question is: If someone has an emergency fund of "6-12 months expenses" in safe keeping (like Ally Bank), does this factor into your overall portfolio? Why wouldn't it? Not counting it is simply "mental accounting." I don't have a separate emergency fund, but I hold plenty of...
by Call_Me_Op
Tue May 24, 2016 11:32 am
Forum: Investing - Theory, News & General
Topic: OMG - The Tell Tale Chart - '08 & the Fed
Replies: 11
Views: 1566

Re: OMG - The Tell Tale Chart - '08 & the Fed

Not to be completely dour, but this is a huge reason why I completely quit investing after '08 and had everything parked mostly in cash--I could not bear to watch the train wreck anymore! I have since realized that if I have any hope of retiring, I have to invest. But it all seems like a very crowd...
by Call_Me_Op
Fri May 20, 2016 6:19 am
Forum: Investing - Theory, News & General
Topic: safe alternative to stock market
Replies: 61
Views: 5738

Re: safe alternative to stock market

U.S. Treasury bonds (the rate is pitiful now), CD's, Bond Funds, Money Market. Maybe it has been covered, is there a lower risk investment that has some moderate rewards? You seem to be looking for a high return without commensurate risk. This doesn't exist - especially today, where the risk-free r...
by Call_Me_Op
Wed May 18, 2016 6:58 am
Forum: Investing - Theory, News & General
Topic: Fidelity Spartan Funds - name changes
Replies: 48
Views: 5050

Re: Fidelity Spartan Funds - name changes

heybro wrote:It just proves that I am just in deciding to move to Vanguard in the next year or two.


It does - how so? I don't think this name change means anything.
by Call_Me_Op
Wed May 18, 2016 6:50 am
Forum: Personal Finance (Not Investing)
Topic: Could I be held Liable for giving financial advice to a friend
Replies: 37
Views: 3627

Re: Could I be held Liable for giving financial advice to a friend

The issue to be concerned about is not that they can sue you (just don't take money from them). The issue more likely to occur is they will blame you when the market goes south, and friendships will be harmed. Try not to give financial advice to friends or family. As others have suggested, they are ...
by Call_Me_Op
Wed May 18, 2016 6:34 am
Forum: Personal Consumer Issues
Topic: Did your children ever completely move out?
Replies: 53
Views: 3743

Re: Did your children ever completely move out?

They sometimes move out but return years later. My brother got divorced a few years ago and is back with my parents. He is 57 and they are 80ish. I have another brother 56 who is permanently disabled and lives about a mile from my folks. My mom still sometimes cooks for him, does his wash, and cuts ...
by Call_Me_Op
Mon May 16, 2016 11:51 am
Forum: Investing - Help with Personal Investments
Topic: Safer Allocation
Replies: 4
Views: 622

Re: Safer Allocation

rocko wrote:Since preservation of capital is my #1 priority is there much of a downside to keeping 30% in Total Stock Market Fund while exchanging the 70% in bond funds to CDs?


No. In fact, any small "downside" in return is due to the fact that the CD's are safer.
by Call_Me_Op
Sun May 15, 2016 8:15 am
Forum: Investing - Theory, News & General
Topic: I Bond rates for May 1 announced
Replies: 65
Views: 9728

Re: I Bond rates for May 1 announced

I used to buy I-Bonds but now that I've saved a lot more money I stopped and plan to sell my holdings. It's not worth the extra hassle of the terrible TD website when I need to invest 6 figures in bonds (so only a small % will be in I-bonds). I hear this complaint all the time. Yet, I have never ha...
by Call_Me_Op
Sun May 15, 2016 7:14 am
Forum: Investing - Help with Personal Investments
Topic: Won the game - time to quit playing?
Replies: 46
Views: 7642

Re: Won the game - time to quit playing?

Just curious, if the stock market fell 50% this year would that have a negative impact on your retirement plans? If a 50% slide wouldn't affect your standard of living at all, you obviously have a big cushion, and don't need to be investing so aggressively. Why not go more for capital preservation,...
by Call_Me_Op
Sun May 15, 2016 7:11 am
Forum: Investing - Help with Personal Investments
Topic: Won the game - time to quit playing?
Replies: 46
Views: 7642

Re: Won the game - time to quit playing?

I think 58/42 is good for the rest of your life. 50/50 is also a good choice for your remaining years. But neither of these AAs have anything to do with "quit playing" in the subject line. Investing is a lifelong process, you see... Right. Staying with 58/42 or going to 50/50 isn't "...
by Call_Me_Op
Sat May 14, 2016 9:45 am
Forum: Investing - Help with Personal Investments
Topic: Muni bonds vs Muni bond fund
Replies: 7
Views: 737

Re: Muni bonds vs Muni bond fund

Bioret wrote:I am looking to buy into a Municipal bond fund or to buy individual Municipal bonds. The advisor at JP Morgan at Chase is trying to get me to have them put together a portfolio of bonds for me. Their fee for that will be 0.98 %.


No.
by Call_Me_Op
Sat May 14, 2016 6:25 am
Forum: Personal Finance (Not Investing)
Topic: Retire Early -or- Not At All
Replies: 31
Views: 3446

Re: Retire Early -or- Not At All

I don't think 25X is considered a safe number for early retirees.
by Call_Me_Op
Fri May 13, 2016 6:56 am
Forum: Investing - Help with Personal Investments
Topic: Won the game - time to quit playing?
Replies: 46
Views: 7642

Re: Won the game - time to quit playing?

I think 58/42 is good for the rest of your life. 50/50 is also a good choice for your remaining years. But neither of these AAs have anything to do with "quit playing" in the subject line. Investing is a lifelong process, you see... Right. Staying with 58/42 or going to 50/50 isn't "...
by Call_Me_Op
Sat May 07, 2016 6:30 am
Forum: Investing - Theory, News & General
Topic: Where is Rick Ferri? [Portfolio Solutions management and fee structure]
Replies: 95
Views: 15857

Re: Where is Rick Ferri?

Indeed, very odd. In the past, I have thought that if I were to recommend an advisory firm, it would be PS. I would have thought that any such transition would have been handled more transparently.
by Call_Me_Op
Sat May 07, 2016 6:11 am
Forum: Investing - Theory, News & General
Topic: 4% rule and interest rates
Replies: 28
Views: 3626

Re: 4% rule and interest rates

Of course interest rates matter. A long period of very low rates will depress both bond and stock returns. If you want to withdraw 4% the first year and adjust upward each year with inflation, your portfolio needs to return more than 4% + inflation rate (plus a little more), after taxes, or you will...
by Call_Me_Op
Sat May 07, 2016 6:01 am
Forum: Investing - Theory, News & General
Topic: a math question
Replies: 6
Views: 920

Re: a math question

pablolo wrote:How long would 120k last if it earns 3.25% annually and 5% is withdrawn each year?


5% of initial value of 5% of current value? Obviously, if you withdraw 5% of current value, the value can never drop to zero.
by Call_Me_Op
Sun May 01, 2016 8:18 am
Forum: Investing - Theory, News & General
Topic: Vanguard Limited-Term Tax-Exempt Fund > Ally Bank?
Replies: 12
Views: 1255

Re: Vanguard Limited-Term Tax-Exempt Fund > Ally Bank?

You can put a portion of it in the tax-exempt fund but I wouldn't put it all there. Future maximum draw-down is not limited to that of the past, and you do not want to sell at a loss in the case of an emergency.
by Call_Me_Op
Sun May 01, 2016 8:03 am
Forum: Investing - Theory, News & General
Topic: Jonathan Clements: higher % stocks -> higher % of stocks international
Replies: 14
Views: 1611

Re: Jonathan Clements: higher % stocks -> higher % of stocks international

Thus, if I understand correctly, Clements might be saying that he would allocate the Vanguard LifeStrategy funds a little differently than Vanguard has. Thus, for example, Vanguard LifeStrategy Growth is 80/20, and 40% of that 80 is international, thus 48% U.S. stocks, 32% international stocks. Van...
by Call_Me_Op
Sat Apr 30, 2016 6:57 am
Forum: Investing - Theory, News & General
Topic: Why not ETFs?
Replies: 57
Views: 4041

Re: Why not ETFs?

I hold both mutual funds and ETF's in my taxable account and find it's no problem. The ETF's I hold are commission-free and I trade infrequently. To trade an ETF, I can simply place a limit order at lunch time good until the end of the day. Never have encountered a problem. My inclination is to use ...
by Call_Me_Op
Thu Apr 28, 2016 6:58 am
Forum: Investing - Help with Personal Investments
Topic: Advice on taxable accounts
Replies: 7
Views: 1110

Re: Advice on taxable accounts

How about a combination of total stock market and intermediate tax-exempt bond?
by Call_Me_Op
Wed Apr 27, 2016 8:38 am
Forum: Investing - Theory, News & General
Topic: Allan Roth on why bond funds are better than individual bonds
Replies: 63
Views: 5415

Re: Allan Roth on why bond funds are better than individual bonds

If you really believe in taking your risk on the equity side, you use only treasuries and CD's and no need for funds. I would only use funds for bonds that have credit risk.
by Call_Me_Op
Wed Apr 27, 2016 7:54 am
Forum: Investing - Help with Personal Investments
Topic: How do bond funds REALLY work?
Replies: 16
Views: 1968

Re: How do bond funds REALLY work?

It appears that a lot of people are somewhat hesitant to purchase some bond asset classes since they are suppose to go down as the US government raises interest rates.... Not true. You are confusing the Fed's discount rate with the interest rate on bonds. These are not the same and are only closely...
by Call_Me_Op
Mon Apr 25, 2016 6:48 am
Forum: Investing - Theory, News & General
Topic: Dow 100,000
Replies: 33
Views: 5256

Re: Dow 100,000

I was listening to Eric Edelman show on the radio. He asserted that Dow 100,000 should happen in like 20 years or so. Considering that it is now 18,000, I thought this would be a wild eyed prediction. Warren Buffet said it will happen but not in his lifetime. If one assumes 9% growth per year (mayb...
by Call_Me_Op
Sun Apr 24, 2016 8:49 am
Forum: Investing - Help with Personal Investments
Topic: Misallocated, No Bonds - What Now?
Replies: 11
Views: 1353

Re: Misallocated, No Bonds - What Now?

Also with bond yields well below average yields, it would appear that a major reallocation to bonds would likely result in capital losses as the yields revert to the mean. I think it is an error to assume that bond yields will revert to the "mean." What mean (over what period)? I don't th...
by Call_Me_Op
Sun Apr 24, 2016 6:44 am
Forum: Investing - Help with Personal Investments
Topic: What's the deal with long term gov bonds?
Replies: 26
Views: 2047

Re: What's the deal with long term gov bonds?

I'm trying to finalize my AA with fidelity. Deciding on the bond AA. Spartan Long-Term Treasury Bond Index Fund seems too good to be true. Surely you must be joking. Op, these are the returns: ytd7.68% 1yr2.69% 3yr5.95% 5yr9.58% 10yr7.85% Sadly, I don't know much about investing but they sure look ...
by Call_Me_Op
Sat Apr 23, 2016 6:08 am
Forum: Investing - Theory, News & General
Topic: Determine risk tolerance
Replies: 19
Views: 1350

Re: Determine risk tolerance

It's hard to know your risk tolerance if you have not lived through a major crash. I would sit in a comfortable chair and imagine your account balance falling by 50% in 1 year AND you do not know if or when the slide will stop. Think about having a specific amount and that amount being cut in half i...
by Call_Me_Op
Sat Apr 23, 2016 5:30 am
Forum: Personal Consumer Issues
Topic: Want to buy a home safe - advice?
Replies: 37
Views: 3542

Re: Want to buy a home safe - advice?

livesoft wrote:Ah, you need a fake safe that burglars would spend so much time on that they would forget to find and get the good stuff.


Even better is to put some fake gold in the fake safe.
by Call_Me_Op
Fri Apr 22, 2016 4:22 pm
Forum: Investing - Help with Personal Investments
Topic: What's the deal with long term gov bonds?
Replies: 26
Views: 2047

Re: What's the deal with long term gov bonds?

fortfun wrote:I'm trying to finalize my AA with fidelity. Deciding on the bond AA. Spartan Long-Term Treasury Bond Index Fund seems too good to be true.


Surely you must be joking.
by Call_Me_Op
Fri Apr 22, 2016 11:51 am
Forum: Investing - Help with Personal Investments
Topic: Acorns - Automatic Investing
Replies: 17
Views: 3734

Re: Acorns - Automatic Investing

Cool concept...but thoughts on the fees? "It charges a flat $1-a-month fee and a 0.25 percent to 0.5 percent management fee on the money invested" 0.5 percent fee up to $5000 account balance, then it drops to 0.25 percent. http://www.theverge.com/2014/8/26/6068017/acorns-app-saving-invest...
by Call_Me_Op
Thu Apr 21, 2016 9:08 am
Forum: Investing - Help with Personal Investments
Topic: Vanguard versus David Swenson
Replies: 28
Views: 3758

Re: Vanguard versus David Swenson

I agree with Vanguard on the REITs. I would never hold them in taxable. On the treasury versus muni question, I would split the difference - and (a la Bernstein) place perhaps 1/3 of taxable fixed-income in muni's.
by Call_Me_Op
Thu Apr 21, 2016 7:11 am
Forum: Investing - Theory, News & General
Topic: If past performance doesn't indicate future performance, why buy stocks?
Replies: 43
Views: 4276

Re: If past performance doesn't indicate future performance, why buy stocks?

I believe that the SEC statement is "past performance does not guarantee future results." That means just what it says. It says "does not guarantee." It doesn't say "does not indicate", whatever that means.
by Call_Me_Op
Tue Apr 19, 2016 4:42 pm
Forum: Investing - Theory, News & General
Topic: Series EE bonds as holder for emergency funds
Replies: 9
Views: 1357

Re: Series EE bonds as holder for emergency funds

The wiki mentions various places to keep emergency funds: https://www.bogleheads.org/wiki/Emergency_fund But not Series EE bonds. I'm considering adding the EE choice to the wiki page and am seeking comments. Now it's not for everyone. Basically I have a low chance of ever needing to draw from my e...
by Call_Me_Op
Tue Apr 19, 2016 4:39 pm
Forum: Investing - Theory, News & General
Topic: I hold only US Bonds. Is this risky?
Replies: 22
Views: 1814

Re: I hold only US Bonds. Is this risky?

Should I consider adding the International Total Bond index fund? Rick Ferri advises against this because it's too expensive after the hedging costs. He says US bonds are all you need. But I worry about if something were to happen...the lack of diversification around the world will come back to bit...
by Call_Me_Op
Mon Apr 18, 2016 5:40 am
Forum: Investing - Theory, News & General
Topic: Rick Edelman Advice....Good?
Replies: 22
Views: 3303

Re: Rick Edelman Advice....Good?

tumbleweedsusan wrote:you are posting a question about owning individual stocks on a forum with index fund disciples.


Can you tell me where he mentions individual stocks? I know for a fact that Ric (Edelman) doesn't recommend individual stocks. He favors ETFs.
by Call_Me_Op
Sun Apr 17, 2016 10:56 am
Forum: Investing - Theory, News & General
Topic: Quick Question - To Time or Not to Time
Replies: 14
Views: 1337

Re: Quick Question - To Time or Not to Time

inconspicuous wrote:Here's my question... I know generally speaking market timing is a secondary concern.


No, it is a primary concern - not to engage in it.
by Call_Me_Op
Sun Apr 17, 2016 10:55 am
Forum: Investing - Help with Personal Investments
Topic: SWAN: Using absolute dollar amount instead of percentage to manage risk
Replies: 28
Views: 2649

Re: SWAN: Using absolute dollar amount instead of percentage to manage risk

Why are you placing an upper limit on equities? It seems more logical to place a lower limit o SAFE assets (i.e., the assets you need to fund your basic liabilities).
by Call_Me_Op
Sun Apr 17, 2016 7:53 am
Forum: Investing - Theory, News & General
Topic: Everyone Worries Too Much About 'Black Swans'
Replies: 39
Views: 4220

Re: Everyone Worries Too Much About 'Black Swans'

The issue here is there is no risk in the past. People assume that there will be an occasional "black swan" followed by a rapid recovery. But the real risk is that there may not be a rapid recovery - may take decades.
by Call_Me_Op
Sat Apr 16, 2016 5:16 pm
Forum: Investing - Theory, News & General
Topic: Total Bond Achilles Heel?
Replies: 47
Views: 5603

Re: Total Bond Achilles Heel?

Fellow Bogleheads: Please read a portion of an article below from Boomberg.com: "Here's the logic behind this. Passive strategies seek to track broader indexes, allocating more money toward borrowers that have larger amounts of debt outstanding. In other words, the more bonds a company has sol...
by Call_Me_Op
Sat Apr 16, 2016 5:13 pm
Forum: Personal Finance (Not Investing)
Topic: Safe money?
Replies: 19
Views: 2760

Re: Safe money?

Hi everyone, I want to help my mom decide what to do with the cash she's saved up in the bank. I am managing her IRA funds with a fairly standard index-fund approach. Outside of this, she has ~500,000 in cash sitting in the bank (some in CDs which will mature soon). She is not a big fan of investin...
by Call_Me_Op
Mon Apr 11, 2016 5:15 pm
Forum: Investing - Help with Personal Investments
Topic: Cash vs bond etf
Replies: 6
Views: 538

Re: Cash vs bond etf

What is the best asset to hold cash holdings ? Plain old savings account/CDs OR bond etf ? I do not consider a CD or a bond ETF equivalent to cash. Cash is an asset class that is highly liquid, does not fluctuate in market value, and pays interest. Examples of cash are a bank account and money-mark...
by Call_Me_Op
Sun Apr 10, 2016 10:02 am
Forum: Investing - Theory, News & General
Topic: Rebalancing in a taxable account isn't so simple
Replies: 54
Views: 4501

Re: Rebalancing in a taxable account isn't so simple

The advice to rebalance once per year is only applicable to tax-advantaged accounts. For taxable accounts, rebalancing should be with new money, with interest, dividends, and distributions, or from harvested losses. Also, you should use flexible rebalancing bands, not a calendar basis. For example, ...
by Call_Me_Op
Sat Apr 09, 2016 6:23 am
Forum: Investing - Theory, News & General
Topic: The Keys to Active Management
Replies: 10
Views: 1139

Re: The Keys to Active Management

cheese_breath wrote:
Call_Me_Op wrote:Can you direct me to where at that link they state that active beats passive? I don't see anything to that effect.

That link is displayed only 20% of the time. :D

:)
by Call_Me_Op
Sat Apr 09, 2016 5:56 am
Forum: Investing - Theory, News & General
Topic: Rebalancing to control risk doesn't make sense to me
Replies: 42
Views: 3223

Re: Rebalancing to control risk doesn't make sense to me

I think you are missing the emotional factor, which is actually the biggest (risk) factor in investing for most people.
by Call_Me_Op
Fri Apr 08, 2016 3:59 pm
Forum: Investing - Theory, News & General
Topic: The Keys to Active Management
Replies: 10
Views: 1139

Re: The Keys to Active Management

Can you direct me to where at that link they state that active beats passive? I don't see anything to that effect.
by Call_Me_Op
Fri Apr 08, 2016 9:41 am
Forum: Investing - Help with Personal Investments
Topic: International indexing vs. managed funds.
Replies: 11
Views: 857

Re: International indexing vs. managed funds.

Thanks Taylor (and the other repliers). I noticed that Fidelity has recently been running ads claiming how their Diversified International Fund has outperformed the EAFE index over the long term, even with a a roughly 1% expense ratio. I don't know if this is just spin or not. Of course, there is a...
by Call_Me_Op
Fri Apr 08, 2016 8:54 am
Forum: Investing - Help with Personal Investments
Topic: International indexing vs. managed funds.
Replies: 11
Views: 857

Re: International indexing vs. managed funds.

There are no guarantees, but the "relentless rules of humble arithmetic" apply also to international investing.
by Call_Me_Op
Tue Apr 05, 2016 6:47 am
Forum: Personal Consumer Issues
Topic: Sensory Deprivation Tanks
Replies: 23
Views: 2528

Re: Sensory Deprivation Tanks

Doesn't sound like a natural situation, so I would avoid.
by Call_Me_Op
Mon Apr 04, 2016 6:52 am
Forum: Investing - Theory, News & General
Topic: Mr. Bogle and Global Corruption Crackdown
Replies: 32
Views: 4392

Re: Mr. Bogle and Global Corruption Crackdown

Mr. Bogle recommends not investing in foreign markets because: (1) He doesn't envision the world economies outpacing the U.S. in terms of investment return in the future. Mr. Bogle stated the U.S. is the most innovative and entrepreneurial country in the world. (5) The U.S. has the strongest financ...

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