Search found 4414 matches

by Dandy
Wed Feb 22, 2017 10:10 am
Forum: Investing - Theory, News & General
Topic: Retiree Accumulation/Withdrawal Phase -- How many funds do you have? Allocation? Withdrawal strategy?
Replies: 64
Views: 4152

Re: Retiree Accumulation/Withdrawal Phase -- How many funds do you have? Allocation? Withdrawal strategy?

1.Withdrawal Phase (how long into retirement)? I will be in the withdrawal phase as far as RMD next year at age 70. 10 years into retirement . 2. Number of funds? Allocation? Or AA ("age in bonds", 50/50, etc, Other?) TIRA has 6 funds and a CD ladder. That account is approximately 30/70 v...
by Dandy
Wed Feb 22, 2017 9:36 am
Forum: Investing - Theory, News & General
Topic: Warren Buffett v. Bogleheads
Replies: 35
Views: 2423

Re: Warren Buffett v. Bogleheads

In effect that is what rebalancing does -- it buys when the market is down and sells when the market is up. Also, keep in mind that Mr. Bogle has said when the market is extremely overvalued you should consider significant reductions in equities. e.g. going from say 60% to 40%. This Bogle idea gets ...
by Dandy
Mon Feb 20, 2017 12:28 pm
Forum: Investing - Help with Personal Investments
Topic: Who would quit playing if they already won?
Replies: 106
Views: 10187

Re: Who would quit playing if they already won?

Quit playing when you have won is the bumper sticker or headline not the more detailed idea. Not playing didn't mean have no equities. The idea, in my opinion, was to secure retirement funding first by having X years of your investable assets in "safe" products e.g. Individual TIPS, short ...
by Dandy
Sun Feb 19, 2017 12:07 pm
Forum: Investing - Help with Personal Investments
Topic: What to do? [fearful of potential losses]
Replies: 6
Views: 642

Re: What to do?

A lot depends on how close you are to retirement and how close your nest egg is to the asset goal you may be shooting for. Near and newly retired face an issue of a bad sequence of returns (a nice way of saying a significant loss) and may not have the earning power to recover and support a 25 to 30 ...
by Dandy
Thu Feb 02, 2017 10:14 am
Forum: Investing - Theory, News & General
Topic: Everybody says stocks are expensive but market keeps rising
Replies: 13
Views: 2539

Re: Everybody says stocks are expensive but market keeps rising

investment rationality declines as equity markets/investments rise. That is how we get bubbles that burst whether that is housing, equities or tulip bulbs. Not saying we are in an equity bubble but a long bull market tends to feed irrationality.
by Dandy
Thu Feb 02, 2017 9:59 am
Forum: Investing - Help with Personal Investments
Topic: Protecting a sizable amount of capital for 10 years.
Replies: 16
Views: 1964

Re: Protecting a sizable amount of capital for 10 years.

Protecting capital is different than protecting purchasing power. Individual TIPS might be the best at doing both. Of course your personal inflation may not be the same as the TIPS formula. e.g. if you were looking to buy a house in 10 years the housing inflation could be a lot higher than the TIPS ...
by Dandy
Thu Feb 02, 2017 9:47 am
Forum: Investing - Help with Personal Investments
Topic: 30 year old and feeling extremely behind...
Replies: 43
Views: 5268

Re: 30 year old and feeling extremely behind...

Today many of your peers are in exactly the same spot. You have 30+ years to invest for retirement and another 20+ years in retirement so you have a long time frame. You have plotted a very aggressive investment allocation --I'm guessing because you feel you are so far behind. That can be a big mist...
by Dandy
Thu Feb 02, 2017 9:33 am
Forum: Investing - Help with Personal Investments
Topic: How do you guys ignore this stuff?
Replies: 80
Views: 8061

Re: How do you guys ignore this stuff?

It is hard to ignore but you really have to or you will drive yourself nuts. A lot depends on your allocation and whether it is really close to your actual risk tolerance. I try to stay focused on economic "facts" e.g. employment, GDP, inflation, interest rates etc. rather than get overly ...
by Dandy
Mon Jan 30, 2017 3:27 pm
Forum: Investing - Help with Personal Investments
Topic: What do you include in your asset allocation calculations?
Replies: 43
Views: 3337

Re: What do you include in your asset allocation calculations?

It is interesting that many don't include their emergency fund. When you think about it all your assets are really part of your emergency fund. If you have a 6 month E fund and are out of work for 10 months - guess you are going to use other assets. It is a form of mental accounting which I understa...
by Dandy
Sat Jan 28, 2017 8:40 am
Forum: Investing - Help with Personal Investments
Topic: What do you include in your asset allocation calculations?
Replies: 43
Views: 3337

Re: What do you include in your asset allocation calculations?

mutual funds, bank savings products, EE and HH bonds -- I don't include home (that is fully paid off), cash value of insurance and don't turn income streams like pension and social security into pseudo bonds. So pretty much products that I can move from mutual funds to bank/government savings produc...
by Dandy
Fri Jan 27, 2017 3:28 pm
Forum: Investing - Theory, News & General
Topic: what to do if you don't want bonds
Replies: 23
Views: 2368

Re: what to do if you don't want bonds

Think fixed income vs just bonds or bond funds. CDs, online savings (pay 1% or more), also not traditional bond e.g. I bonds, EE bonds and for some 401ks Stable value funds. If you are worried about interest rate rising perhaps VG's Ultra short term bond fund with currently a 9 month duration.
by Dandy
Thu Jan 26, 2017 9:55 am
Forum: Personal Finance (Not Investing)
Topic: Rebalancing AA in Retirement
Replies: 12
Views: 814

Re: Rebalancing AA in Retirement

I monitor my overall allocation and trim equities when they exceed the overall band (e.g. goal of 45% when it exceeds that) and we are getter close. Don't worry too much about sub allocations. But, main focus is having enough "safe" assets to fund current residual retirement expenses to ag...
by Dandy
Thu Jan 26, 2017 9:27 am
Forum: Personal Finance (Not Investing)
Topic: Can I afford to stop working overtime?
Replies: 56
Views: 4433

Re: Can I afford to stop working overtime?

One thing that I learned is that there are usually people in similar situations that do fine and earn less than you. So, it can be done. The important focus on children is your love, attention and the guidance you can give them. If they lean toward troubled behavior, have social or health issues or ...
by Dandy
Thu Jan 26, 2017 8:28 am
Forum: Investing - Theory, News & General
Topic: Risk tolerance when you meet your number
Replies: 106
Views: 9695

Re: Risk tolerance when you meet your number

Feeling you have your number is usually a reasonable educated guess - the amount of guess involved is greater when you are younger. Trying to determine if you have enough to fund 30 years of retirement is easier than if you have 40 years. So, unless you have done a very, very conservative estimation...
by Dandy
Wed Jan 25, 2017 9:13 am
Forum: Investing - Theory, News & General
Topic: Yahoo Interview with Bogle - Response to Posner
Replies: 13
Views: 1639

Re: Yahoo Interview with Bogle - Response to Posner

First of all I think he uses the word "checks" because it is simple and easily understood. What was he supposed to say electronic payments? I think you may have been caught up in your disagreement with some other points. I get that there is a strong case for eschewing dividends and focusin...
by Dandy
Wed Jan 25, 2017 8:25 am
Forum: Investing - Theory, News & General
Topic: Unidirectional rebalancing?
Replies: 18
Views: 1790

Re: Unidirectional rebalancing?

My IPS specifies that rebalancing from safe investments into stocks will not happen if doing so will drop safe assets below a floor. That floor is the value needed to sustain my current lifestyle into the future. I call this "adaptive rebalancing." 1+ Especially near or in retirement this...
by Dandy
Tue Jan 24, 2017 10:14 am
Forum: Investing - Theory, News & General
Topic: Holding Bonds as Opportunity to Buy Stocks
Replies: 17
Views: 2427

Re: Holding Bonds as Opportunity to Buy Stocks

Actually idle cash in sweep accounts is one of the biggest money making operations of brokers. This is certainly a big deal for discount brokers and no-commission brokers. I believe the idle cash balance/sweep refers to distributions, etc. that end up in the clearing account vs money purposely inve...
by Dandy
Tue Jan 24, 2017 9:05 am
Forum: Investing - Theory, News & General
Topic: Holding Bonds as Opportunity to Buy Stocks
Replies: 17
Views: 2427

Re: Holding Bonds as Opportunity to Buy Stocks

I wouldn't necessarily say that holding bonds (or fixed income) exclusively for the opportunity to pounce when stocks drop is the greatest idea. I think it is a side benefit of having a balanced allocation rather than being heavily allocated toward equities. So, I would recommend you have an allocat...
by Dandy
Tue Jan 24, 2017 8:54 am
Forum: Investing - Theory, News & General
Topic: Total Bond Market vs. 2% CD
Replies: 44
Views: 10627

Re: Total Bond Market vs. 2% CD

Having some fixed income in intermediate CDs is fine. VG offers a 5 yr brokerage CD with a 2.25% rate. If you are sure you will hold for 5 years you could consider this. Why not put some money in a CD and some in Total bond? Brokerage CDs pay out interest (no option to do otherwise) so you can inves...
by Dandy
Tue Jan 24, 2017 8:32 am
Forum: Investing - Help with Personal Investments
Topic: Improve the 100% Equity Asset Allocation
Replies: 34
Views: 2974

Re: Improve the 100% Equity Asset Allocation

If you are sure that you can support yourself without any or much of this portfolio then you can invest 100% in equities. Some thoughts 1. If you are truly investing for heirs, and they are adults you may want to invest with their preferred allocation. You can take very high risks and enjoy it -- ma...
by Dandy
Sat Jan 21, 2017 7:17 am
Forum: Investing - Theory, News & General
Topic: Does it matter which index Bond fund you invest in?
Replies: 16
Views: 1745

Re: Does it matter which index Bond fund you invest in?

the higher your allocation to fixed income the more the choice of fixed income products matter. But, they don't usually approach the risk/rewards of equity choices.
by Dandy
Sat Jan 21, 2017 6:45 am
Forum: Investing - Help with Personal Investments
Topic: Vanguard TR or balanced index fund???
Replies: 28
Views: 2010

Re: Vanguard TR or balanced index fund???

My main concern with TR funds is that VG has and can continue to change the allocation and funds included. So, you never are sure what you are buying. Recently, they added international bonds and upped the allocation to international equities and substituted short term TIPS fund for the longer durat...
by Dandy
Fri Jan 20, 2017 7:59 am
Forum: Investing - Help with Personal Investments
Topic: How to factor pension into asset allocation?
Replies: 18
Views: 1447

Re: How to factor pension into asset allocation?

Having a federal pension is almost a bird in hand and puts you in a much better position to take more risk with your portfolio than if you didn't have it. But it is just an income stream not an investable asset. It will reduce the withdrawal rate on your investments which is a good thing. So, take a...
by Dandy
Thu Jan 19, 2017 11:38 am
Forum: Investing - Theory, News & General
Topic: Deciding on types of bonds is harder than stocks!
Replies: 20
Views: 2303

Re: Deciding on types of bonds is harder than stocks!

I agree that the fixed income side isn't as simple as I once thought and is a bit more important that "just put it all in the Total Bond fund" (which is a pretty good fund). People think bonds/bond funds instead of fixed income. If your allocation to fixed income is mostly for safety not i...
by Dandy
Thu Jan 19, 2017 10:53 am
Forum: Investing - Help with Personal Investments
Topic: Lost in Swamp in central Fl
Replies: 27
Views: 3193

Re: Lost in Swamp in central Fl

The problem with brokerage firms and brokers isn't that they are all evil -- it is that they charge too much and some are not trustworthy. It is hard to tell who and how much to trust. In order to get some meaningful advice from this forum we need to know the extra income you need from the lump sum ...
by Dandy
Thu Jan 19, 2017 10:35 am
Forum: Investing - Help with Personal Investments
Topic: Value averaging
Replies: 7
Views: 639

Re: Value averaging

However, the biggest advantage of DCA is behavioral. I can automate it and tune out of the market when things go south. With VA, I'm constantly making a decision how much to invest. The more I have to make a decision, the more chances I have to screw it up. True. That is why I recommend some lump s...
by Dandy
Thu Jan 19, 2017 9:46 am
Forum: Investing - Help with Personal Investments
Topic: Short and Intermediate Term Bond Funds
Replies: 14
Views: 1991

Re: Short and Intermediate Term Bond Funds

Retired with a goal of asset preservation and have a bit more than my "number". Age, goal and asset levels can make a difference. A la Dr. Bernstein's idea I keep enough "safe" assets to fund current residual expenses for 21 years -- actually to age 90. Current "fixed Income...
by Dandy
Mon Jan 16, 2017 1:24 pm
Forum: Personal Finance (Not Investing)
Topic: Why nobody understands importance of high-deductible insurance?
Replies: 115
Views: 10594

Re: Why nobody understands importance of high-deductible insurance?

For property and casualty it makes sense if people can truly afford the deductible. For most you just want to insure the large but hopefully rare expense that would be difficult to pay yourself. For health insurance it is more of a mixed bag. Sometimes people with high deductible health insurance av...
by Dandy
Mon Jan 16, 2017 1:13 pm
Forum: Investing - Theory, News & General
Topic: What is the Bogleheads position on Long-term successful daytraders?
Replies: 104
Views: 8702

Re: What is the Bogleheads position on Long-term successful daytraders?

Both of them are truly exceptional! :happy I think it is extremely hard to day trade successfully over the long term unless you have inside information. I would take trader's success with a large grain of salt. It reminds me of people to go the track often and claim they are ahead. They usually aren...
by Dandy
Mon Jan 16, 2017 12:57 pm
Forum: Investing - Theory, News & General
Topic: Why not put it all in TIPS?
Replies: 87
Views: 5250

Re: Why not put it all in TIPS?

I would never consider 100%, even with a modest slug of cash, in one investment. I would consider putting 20-25 years of your current residual needs (money needed each year to supplement other income) in TIPS/and/or other "safe" products. Your actual expense growth/inflation may not align ...
by Dandy
Mon Jan 16, 2017 7:46 am
Forum: Investing - Help with Personal Investments
Topic: Emergency Fund in Series I Savings Bonds
Replies: 9
Views: 1013

Re: Emergency Fund in Series I Savings Bonds

I like the split between I bonds and an online savings account. When/if an emergency occurs you can decide which to tap. Since I bonds have a yearly limit on purchases you may not want to cash them in for smaller emergencies that your savings account could handle. Keep in mind that an emergency like...
by Dandy
Sun Jan 15, 2017 10:21 pm
Forum: Investing - Help with Personal Investments
Topic: Value of House in Planning for Retirement
Replies: 46
Views: 3264

Re: Value of House in Planning for Retirement

Having equity in a house is certainly better off than not having it. Lots of ifs -- pay of HELOC, pay down 1st mortgage to 50k, a modest 3% house appreciation, being able to sell when you want... Even with all the ifs you probably can take more risk on the equity side if you want. I wouldn't. I'd st...
by Dandy
Sun Jan 15, 2017 9:28 am
Forum: Investing - Help with Personal Investments
Topic: Dollar-Cost-Average over HOW MANY years?
Replies: 58
Views: 3715

Re: Dollar-Cost-Average over HOW MANY years?

No doubt that since stocks rise over time the lump sum will probably turn out better than DCA. Seems like it is about 70/30 in favor of lump sum. What are the stats if one only did DCA when, say the S&P was at or within 2% of its historic high (or some better measure of high valuation). You woul...
by Dandy
Sun Jan 15, 2017 8:01 am
Forum: Investing - Theory, News & General
Topic: Bogle says 50-50 short/intermediate bonds
Replies: 45
Views: 5805

Re: Bogle says 50-50 short/intermediate bonds

little bit of personal market timing While the words "little bit" and "personal" and even "tactical" tend to soften it -- it is market timing and not staying the course. I'm not criticizing it -- just saying people can and probably should, on occasion, make changes to ...
by Dandy
Sat Jan 14, 2017 1:54 pm
Forum: Investing - Theory, News & General
Topic: Bogle says 50-50 short/intermediate bonds
Replies: 45
Views: 5805

Re: Bogle says 50-50 short/intermediate bonds

Another market timing move by Jack - oh I mean tactical allocation move since when Jack does it there aren't a lot of warnings that he should stay the course. :happy Tactical allocation occasionally makes some sense, especially on the fixed income side. e.g. last year a 10 year CD was 100 basis poin...
by Dandy
Sat Jan 14, 2017 1:31 pm
Forum: Investing - Help with Personal Investments
Topic: Dollar-Cost-Average over HOW MANY years?
Replies: 58
Views: 3715

Re: Dollar-Cost-Average over HOW MANY years?

Unless it is a small amount I rarely recommend 100% lump or 100% DCA. When the market is high by some objective measure then I would recommend say 20% lump and automate the DCA monthly over the next 9 months to a year. When the Market drops in a month double up on the DCA that month. You should be f...
by Dandy
Sat Jan 14, 2017 6:51 am
Forum: Investing - Theory, News & General
Topic: 100% equities in Roth part of portfolio?
Replies: 19
Views: 2217

Re: 100% equities in Roth part of portfolio?

To me Roth space is special. I would tend to have a bit higher equity allocation in my Roth but not all equities. I'm retired and my RMDs will keep me in a high tax bracket. It will be nice to have a large Roth to tap or to leave to heirs an not worry about taxes. So, I'd rather not risk a large dro...
by Dandy
Thu Jan 12, 2017 5:06 pm
Forum: Investing - Help with Personal Investments
Topic: How to allocate 3-6 million in assets to achieve goals?
Replies: 72
Views: 7536

Re: How to allocate 3-6 million in assets to achieve goals?

Allocating assets for investment purposes, or "low-risk holding", and withdrawing the assets for retirement are different subjects. I guess you can look at it that way especially in the accumulation stage. When you retire, or even shortly before, it is wise to reassess your allocation to ...
by Dandy
Thu Jan 12, 2017 3:30 pm
Forum: Investing - Help with Personal Investments
Topic: How to allocate 3-6 million in assets to achieve goals?
Replies: 72
Views: 7536

Re: How to allocate 3-6 million in assets to achieve goals?

What you mention sounds like the "bucket analogy" where 1 bucket fullfills the "base income" (floor?) and so forth. Like compartmentalization of funds and purpose? Is that correct? No not really that is why I used the term portfolio. In the usual bucket strategy there are severa...
by Dandy
Wed Jan 11, 2017 6:02 pm
Forum: Investing - Help with Personal Investments
Topic: How to allocate 3-6 million in assets to achieve goals?
Replies: 72
Views: 7536

Re: How to allocate 3-6 million in assets to achieve goals?

With 3-6 million you could do almost anything except gamble it away and you should be fine. I like Dr. Wm Bernstein's approach which is if you have won the "game" (and you have) stop playing. He suggests you take your income needs to supplement any pension/social security/annuity etc. 20 -...
by Dandy
Wed Jan 11, 2017 7:37 am
Forum: Investing - Theory, News & General
Topic: A few very basic investing theory questions that have bugged me lately
Replies: 49
Views: 4573

Re: A few very basic investing theory questions that have bugged me lately

I will address the index fund being somewhat like an active fund. I think it also goes to intent. An active manager not only is much more active but is trying to pick winners and sell losers, he/she is trying to outsmart the market. People adjusting the make up of an index are trying to pick stocks ...
by Dandy
Tue Jan 10, 2017 5:13 pm
Forum: Investing - Theory, News & General
Topic: How Bad was 2008, really?
Replies: 189
Views: 12798

Re: How Bad was 2008, really?

What doesn't kill you makes you stronger. Sometimes I guess or it could just cripple you for life. :happy Had the recession lasted a few years longer and the recovery been much milder and stretched out a bit the pain would have been felt by more and more intensely especially those in retirement. I'...
by Dandy
Tue Jan 10, 2017 10:58 am
Forum: Investing - Help with Personal Investments
Topic: Prioritize college savings or retirement savings?
Replies: 6
Views: 626

Re: Prioritize college savings or retirement savings?

Most people here stress retirement funding over college funding, but I think most advisors stress whatever will make them the most money off their clients. I'm pretty down on advisors but not to your extent. There are a lot of decent advisors who unfortunately sell expensive products however you ca...
by Dandy
Tue Jan 10, 2017 10:30 am
Forum: Investing - Theory, News & General
Topic: "Vanguard Retirement Nest Egg Calculator"
Replies: 25
Views: 6699

Re: "Vanguard Retirement Nest Egg Calculator"

It is fun to play with but I also have doubts about projections based on the past equity and bond performance - especially with bond yields so low. I also don't sign on to variable withdrawal plans since I want to have more stability in withdrawals - not trying to maximize them. I like taylor's appr...
by Dandy
Tue Jan 10, 2017 10:10 am
Forum: Investing - Theory, News & General
Topic: How to know your risk tolerance, without ever living through a crash?
Replies: 29
Views: 2427

Re: How to know your risk tolerance, without ever living through a crash?

I think many can accept a very high risk when starting out because the assets in question are usually relatively small. For example they may have 20k and feel that a 50% loss is very tolerable. They can easy make up that loss in contributions (and company matches) in a few years. But, they may fail ...
by Dandy
Tue Jan 10, 2017 9:28 am
Forum: Investing - Theory, News & General
Topic: How Bad was 2008, really?
Replies: 189
Views: 12798

Re: How Bad was 2008, really?

What is so scary about a 2 year blip When you are in the crisis you don't know it is going to be a 2 year "blip" followed by an 8 year and ongoing bull market. I was an executive in a mutual fund company - how did a mortgage crisis mean I would lose my job at age 60? There were no jobs av...
by Dandy
Tue Jan 10, 2017 8:58 am
Forum: Investing - Help with Personal Investments
Topic: Prioritize college savings or retirement savings?
Replies: 6
Views: 626

Re: Prioritize college savings or retirement savings?

Most advisors stress retirement funding over college funding. There are ways to fund college but you are the only ones funding retirement. Kids won't be able to help fund your retirement and you don't want them to. Kids can get scholarships, loans, go to less expensive college, etc. If you retire wi...
by Dandy
Tue Jan 10, 2017 8:44 am
Forum: Investing - Help with Personal Investments
Topic: Factoring Pension
Replies: 13
Views: 1484

Re: Factoring Pension

I wouldn't factor it in at all. Nice to have -- if it is there when you actually retire (and after). Most pension plans are not well funded. e.g.There are a lot of teachers and state workers in NJ that are relying on getting a secure pension. I believe NJ has a short fall in funding of tens of billi...
by Dandy
Tue Jan 10, 2017 8:12 am
Forum: Investing - Help with Personal Investments
Topic: To those with a pension...
Replies: 52
Views: 6481

Re: To those with a pension...

I did not change my approach because I was going to get a pension. It allowed me to take more risk but I did not want to and it turned out I did not need to. Lost my job at age 52 after almost 30 years of service so that made what would have been a wonderful pension turn into a nice pension. Lucky g...
by Dandy
Mon Jan 09, 2017 8:03 am
Forum: Investing - Help with Personal Investments
Topic: Where to park $250K (for 3 to 18 months)?
Replies: 14
Views: 1680

Re: Where to park $250K (for 3 to 18 months)?

Ally bank has an 11 month no penalty CD paying 1.25%. If it is still available it seems to be a pretty good choice. If online savings rates go higher than that -- cash it in and put it in their savings account currently paying 1%.

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