Search found 4210 matches

by Dandy
Sun Sep 25, 2016 5:03 pm
Forum: Investing - Help with Personal Investments
Topic: Purpose of Dividends
Replies: 32
Views: 2725

Re: Purpose of Dividends

When a company issues cash dividends, you get cash, but the stock value declines the same amount percentage wise as the increase in cash dividend. That is true for a stock mutual fund but not necessarily for an individual company. Let's say a company usually pays a certain dollar amount of dividend...
by Dandy
Sun Sep 25, 2016 8:59 am
Forum: Investing - Help with Personal Investments
Topic: IRA CD question
Replies: 32
Views: 1963

Re: IRA CD question

That used to be true, but not any more. The 3% the OP is getting on a 7-year CD is better than Baa corporate offerings. Over the last year or so CDs have indeed become a legitimate yield play. To your point a few years ago I invested in a VG brokerage 10 yr CD at 3.3% which was about 100 basis poin...
by Dandy
Sun Sep 25, 2016 7:33 am
Forum: Investing - Help with Personal Investments
Topic: IRA CD question
Replies: 32
Views: 1963

Re: IRA CD question

Cd's are a good choice for some of your fixed income allocation. Ally bank is a decent choice but if you go to depositaccounts.com you can find banks or credit unions with better CD yields. I like having all my TIRA in on place i.e. Vanguard so I use their brokerage CDs. But, you have to be careful ...
by Dandy
Sat Sep 24, 2016 11:33 pm
Forum: Investing - Help with Personal Investments
Topic: When to collect Social Security - Please check my logic
Replies: 16
Views: 2031

Re: When to collect Social Security - Please check my logic

Sounds like you would be good either way. I favor getting the max COLA income at least for the high earner. You spend some assets now while you probably have a decent amount and then you and your spouse will then have less need for portfolio withdrawals, less dependent on the markets, interest rates...
by Dandy
Sat Sep 24, 2016 10:01 am
Forum: Investing - Theory, News & General
Topic: Investing to Avoid the Consequences of Being Wrong
Replies: 27
Views: 3064

Re: Investing to Avoid the Consequences of Being Wrong

Dr. Bill's philosophy for retirees who have "enough" to have 20-25 years of residual expenses in "safe" assets and invest the rest anyway you want was a game changer for me. Not only does it invest to avoid the consequences of being wrong - it is a sleep well investment approach....
by Dandy
Sat Sep 24, 2016 9:39 am
Forum: Investing - Theory, News & General
Topic: Vanguard Managed Payout Fund
Replies: 41
Views: 3693

Re: Vanguard Managed Payout Fund

I'm not sure why your posting about those funds in the Vanguard Managed Payout Fund thread The OP wrote: I am trying to help a friend that doesn't want to be concerned with rebalancing, is unsophisticated in general about investing but needs income for living expenses, While the OP is addressing ma...
by Dandy
Sat Sep 24, 2016 7:42 am
Forum: Personal Finance (Not Investing)
Topic: When (or whether) to have a second child
Replies: 36
Views: 3294

Re: When (or if) to have a second child

There seems to be a bit of over worry about the financial issues when you seem to be in much better shape than most. Kids are expensive no doubt. I think that most couples who want a second child usually find a way to make it work even those at the poverty level. So, that probably means you will be ...
by Dandy
Sat Sep 24, 2016 7:21 am
Forum: Investing - Theory, News & General
Topic: Vanguard Managed Payout Fund
Replies: 41
Views: 3693

Re: Vanguard Managed Payout Fund

Balanced Index and Wellesley Income, when used as all in one's, are only appropriate for those intentionally excluding international fund That's right. But, any choice of all in one or only one fund involves compromise. Either you accept investments or allocation levels you don't really desire or y...
by Dandy
Fri Sep 23, 2016 4:38 pm
Forum: Personal Consumer Issues
Topic: [500 million Yahoo accounts hacked, what should you do?]
Replies: 79
Views: 4566

Re: What are you YAHOOERS doing?? [due to security breach]

I don't keep what I consider sensitive info on Yahoo. But, who knows what a clever mind can do with what I have? I changed my password, added an additional mobile number for contact, and deleted my security questions. Not sure what I should do further.
by Dandy
Fri Sep 23, 2016 4:34 pm
Forum: Investing - Theory, News & General
Topic: Vanguard Managed Payout Fund
Replies: 41
Views: 3693

Re: Vanguard Managed Payout Fund

Not me. A very odd fund. I would opt for the Balanced Index Fund and/or Wellesley Income fund. The Life Strategy and TD funds are ok but I don't like their allocations and frequent changes - you don't know what you are buying.
by Dandy
Fri Sep 23, 2016 4:30 pm
Forum: Investing - Theory, News & General
Topic: Help understanding the attraction to W & W [Wellington/Wellesley]
Replies: 38
Views: 3802

Re: Help understanding the attraction to W & W [Wellington/Wellesley]

I think most of the love of the W's is while active they aren't very active and they have had excellent performance over many years. Their expense ratio is a bit higher than most boglehead preferred index funds but not really that expensive. So, excellent, long term performance at a decent price. I ...
by Dandy
Thu Sep 22, 2016 2:08 pm
Forum: Investing - Theory, News & General
Topic: I guess we better peek when it comes to Vanguard
Replies: 37
Views: 5122

Re: I guess we better peek when it comes to Vanguard

Can anyone really believe that Jack Bogle, or anyone for that matter, would say to never check statements for errors? Yes and he says it a lot without qualifying that you should check your statement/account for errors. Let's face it if you peek at your statements you know what is happening to your ...
by Dandy
Thu Sep 22, 2016 8:50 am
Forum: Personal Finance (Not Investing)
Topic: Pension Lump Sum - Age 32
Replies: 18
Views: 2099

Re: Pension Lump Sum - Age 32

You can put your lump sum in an online bank TIRA (maybe convert it to a Roth soon after) and invest in 5yr CDs or longer and also have a Savings account that earns 1%. Or buy Treasury securities in your TIRA. Or you can buy EE bonds with taxable dollars and allocate the same amount in your TIRA to e...
by Dandy
Thu Sep 22, 2016 7:52 am
Forum: Personal Finance (Not Investing)
Topic: Pension Lump Sum - Age 32
Replies: 18
Views: 2099

Re: Pension Lump Sum - Age 32

If pensions were secure i.e. you were sure to get it I would opt for the pension. Take the $26600 and multiply it by say 5% for 33 years (to age 65) then multiply the answer by 4% (the "safe" withdrawal rate) and divide that by 12 to get the "safe" monthly withdrawal amount. comp...
by Dandy
Thu Sep 22, 2016 6:24 am
Forum: Investing - Theory, News & General
Topic: I guess we better peek when it comes to Vanguard
Replies: 37
Views: 5122

Re: I guess we better peek when it comes to Vanguard

I do like John Bogle's advice about not peeking at our accounts Why? I think it is one of his really, really bad ideas. I don't think he really is serious, though he says it often. I understand that he is trying to get investors away from fretting about market moves and thereby taking hasty, panic ...
by Dandy
Tue Sep 20, 2016 5:42 pm
Forum: Investing - Theory, News & General
Topic: Do Bogleheads Bucket?
Replies: 85
Views: 6595

Re: Do Bogleheads Bucket?

There have been some discredited bucket theories in the past so sometimes "buckets" is a word that is like hitting a bee hive with a stick. Much of that strategy is using sub accounting or mental accounting. Keeping x years in savings and y years in short term bonds really is just partitio...
by Dandy
Tue Sep 20, 2016 8:28 am
Forum: Personal Finance (Not Investing)
Topic: Is there a point when a used car is too used to be worth buying?
Replies: 43
Views: 3166

Re: Is there a point when a used car is too used to be worth buying?

I think looking for the best price point makes sense when buying a used car e.g. value. In the past buying an older used car and driving it for 10 years or more or hundreds of thousands of miles was a sign of being smart and frugal. I think the advances in safety may tip the balance as to what is a ...
by Dandy
Tue Sep 20, 2016 7:56 am
Forum: Investing - Help with Personal Investments
Topic: About Vanguard advisors: opinions, thoughts?
Replies: 15
Views: 1321

Re: About Vanguard advisors: opinions, thoughts?

It also begs the question of why go to an advisor if you won't follow their advice? Some logic to that. I feel the advisor and client should be able to reach a mutually agreeable allocation. People get second and third opinions on medical issues even though they don't have the same knowledge as the...
by Dandy
Tue Sep 20, 2016 7:46 am
Forum: Investing - Help with Personal Investments
Topic: About Vanguard advisors: opinions, thoughts?
Replies: 15
Views: 1321

Re: About Vanguard advisors: opinions, thoughts?

Wow. I expected the advisors to pitch the Vanguard approach but not to club investors over the head with it. VG seems determined to get people into international investments for their own good whether they like or not or whether it is necessary or not. Kind of off putting especially since their foun...
by Dandy
Mon Sep 19, 2016 10:22 pm
Forum: Investing - Help with Personal Investments
Topic: What Percentage To Put In International Stock?
Replies: 56
Views: 4266

Re: What Percentage To Put In International Stock?

It is all over the place between 0 and maybe 50%. I think 20% of equities in the accumulation stage is ok. I'd reduce international more than US as you glide near or in retirement maybe to 10%. That's just me -- I feel US equities are a bit more stable than international and that fits a more conserv...
by Dandy
Mon Sep 19, 2016 9:59 pm
Forum: Investing - Help with Personal Investments
Topic: Cash for RMDs?
Replies: 10
Views: 952

Re: Cash for RMDs?

There are different bucket theories. If it is just have 3 years in cash and the rest "invested" then I would think you would withdraw the cash only when the investments had a bad year. In good years withdrawals would come from the investments. Other bucket theories have cash, intermediate ...
by Dandy
Mon Sep 19, 2016 8:51 am
Forum: Investing - Theory, News & General
Topic: Bogleheads' Rule of Thumb - Stocks vs Bonds
Replies: 103
Views: 11846

Re: Bogleheads' Rule of Thumb - Stocks vs Bonds

Rules of thumb tend to turn into commandments if you are not careful. I like the following "rules" as good starting points : 1. age in bonds (I prefer fixed income to bonds) 2. determine the percentage of your nest egg you can afford to lose - double that for you equity investment allocati...
by Dandy
Mon Sep 19, 2016 8:22 am
Forum: Investing - Theory, News & General
Topic: Bogle tilts toward Value in his own portfolio
Replies: 34
Views: 3789

Re: Bogle tilts toward Value in his own portfolio

I wouldn't care too much what Bogle or Buffet invests in. Most of his "value" investments are historical "loves" of his from the days he founded Vanguard -- and they have performed well. You will note that Bogle makes frequent "tactical" changes but no one dares call hi...
by Dandy
Mon Sep 19, 2016 8:05 am
Forum: Investing - Help with Personal Investments
Topic: Where's the error in my 401k plan?
Replies: 10
Views: 725

Re: Where's the error in my 401k plan?

Unusual that a company matches 6% of your contributions most match based on your salary.. So as I read it they match 1% of your salary and then 6% of your contributions.
by Dandy
Sun Sep 18, 2016 11:08 am
Forum: Personal Finance (Not Investing)
Topic: Education cost and kids
Replies: 64
Views: 4431

Re: Education cost and kids

For most, at least in the recent past college and maybe even grad school had become close to a necessity. Soaring costs and a difficult labor market may have changed that a bit. Lots of kids are graduating with a college degree or higher and are having a difficult time getting a good, high paying jo...
by Dandy
Sun Sep 18, 2016 10:35 am
Forum: Personal Finance (Not Investing)
Topic: How do you view money over and above your number?
Replies: 47
Views: 4344

Re: How do you view money over and above your number?

I try to make sure I have enough in "safe" products to fully fund our retirement until age 90 at least. I don't try to maximize my withdrawals I take what I need. I have increased my standard of living, as was my goal, in retirement e.g. extra vacations, theater, more dinning out, drive be...
by Dandy
Sat Sep 17, 2016 7:51 am
Forum: Personal Finance (Not Investing)
Topic: Keys to a Successful Retirement
Replies: 55
Views: 6545

Re: Keys to a Successful Retirement

Very thought provoking. I'm 68 and mortgage free and am toying with selling and renting in a few years. It is very expensive to own and maintain a house -- taxes, repairs, appliance replacements, landscaping, etc. As I age I find it harder to do some of the work myself and outsourcing is expensive. ...
by Dandy
Thu Sep 15, 2016 6:15 am
Forum: Investing - Theory, News & General
Topic: market timing
Replies: 41
Views: 2363

Re: market timing

Market timing is a broad term covering any investment moves or waits that aren't part of a well thought out plan and is reactive to current events, media hype, fear or confidence. It can cover people who are day traders or people who might buy on a really bad day or wait to buy because they feel the...
by Dandy
Tue Sep 13, 2016 9:12 pm
Forum: Investing - Theory, News & General
Topic: Are Index Funds a Lousy Bet Right Now?
Replies: 28
Views: 3469

Re: Are Index Funds a Lousy Bet Right Now?

Active funds usually pitch that they will know enough to soften any market plunge vs index funds that will stay fully invested in the index. So, you hope the active manager know when and how to soften the eventual equity plunge, know when and what to buy when the plunge is over, and cover the ER dif...
by Dandy
Tue Sep 13, 2016 9:02 pm
Forum: Investing - Help with Personal Investments
Topic: Short Term Cash Investment
Replies: 15
Views: 1033

Re: Short Term Cash Investment

You can get a bit more than 1% on a on line savings account. With a large amount of money at stake it might be worth it to look. I suggest depositaccounts.com. Look at Savings and bank promotions.
by Dandy
Tue Sep 13, 2016 8:51 pm
Forum: Personal Finance (Not Investing)
Topic: Do you really need 2.5 million to retire well?
Replies: 247
Views: 38153

Re: Do you really need 2.5 million to retire well?

Sure it is a lot. What are your expenses going to be? Will you have a pension? Live in a high cost of living area, retire with some mortgage left to pay, no pension, maybe a wait to collect Social Security and Medicare -- could require a lot more than most current retirees. Will safe interest rates ...
by Dandy
Tue Sep 13, 2016 5:28 am
Forum: Investing - Help with Personal Investments
Topic: Is A Two-Fund Portfolio All You Really Need?
Replies: 44
Views: 5197

Re: Is A Two-Fund Portfolio All You Really Need?

My 2 fund suggestion would be Balanced Index and any other fund that gets you allocation to what you want. e.g. if 60% equities is too high add a bond fund, if it is too low add a stock fund - maybe international? If 60/40 is about right just you have an all in one fund, just make sure that allocati...
by Dandy
Tue Sep 13, 2016 5:18 am
Forum: Investing - Help with Personal Investments
Topic: no Bonds 63
Replies: 12
Views: 1689

Re: no Bonds 63

You only get one retirement no do overs. Most historical, back tested projections are probably indicating that you could be ok. But, no one knows the future. Will it be like the past -- most likely, but no guarantees. So, why be 100% stocks? Trying to turn 2m into 4m? Can't take it with you. You hei...
by Dandy
Mon Sep 12, 2016 2:28 pm
Forum: Investing - Help with Personal Investments
Topic: Municipal Bonds instead of CD's?
Replies: 23
Views: 2042

Re: Municipal Bonds instead of CD's?

Suppose that, as you say, foreign buyers like these 2% bonds so much that they push their price from 100 to 105 Thanks for your response. But when the price of the bond goes to 105 on day 1 that will tend to offset the drop in my bond that day from the rate decline- now over time it will mature at ...
by Dandy
Mon Sep 12, 2016 1:14 pm
Forum: Investing - Help with Personal Investments
Topic: Municipal Bonds instead of CD's?
Replies: 23
Views: 2042

Re: Municipal Bonds instead of CD's?

I assume the theoretical tie between interest change and its affect on a bond or bond funds value ignores some possible effects of the market. e.g. a 1/2% rise in say the 10 year Treasury bond might cause a flood of purchases from foreign countries with low or negative rates. That might bid up the p...
by Dandy
Sun Sep 11, 2016 9:33 am
Forum: Investing - Theory, News & General
Topic: Everything down today - except Junk!
Replies: 17
Views: 2264

Re: Everything down today - except Junk!

A sometimes underappreciated benefit of fixed income that isn't bonds is that many weather these occasional plunges or actual or threats of rising rates better than bonds. Some actually do better with rising rates albeit usually on a bit of a lag. For retirees that have a large allocation to fixed i...
by Dandy
Sat Sep 10, 2016 9:34 am
Forum: Investing - Theory, News & General
Topic: ["Wells Fargo Fined for Years of Harm to Customers"]
Replies: 129
Views: 7913

Re: ["Wells Fargo Fined for Years of Harm to Customers"]

What's the old saying that power corrupts? The pressure to constantly improve results is one type of power. The reaction of management to achieve "unrealistic" results, like having each customer have "X"(I believe it was 8) relationships with the bank?. Is also a corrupting power...
by Dandy
Thu Sep 08, 2016 9:19 am
Forum: Personal Finance (Not Investing)
Topic: Newly Married Financial Checklist
Replies: 7
Views: 716

Re: Newly Married Financial Checklist

1. a will 2. health directive - what to do if one is on life support 3. Possibly powers of attorney 4. I like the consolidation for most mentioned. For credit cards having at least 2 in each name seems wise. e.g. I have a credit card with bank A and my wife also has a separate credit card in Bank B ...
by Dandy
Thu Sep 08, 2016 8:57 am
Forum: Investing - Help with Personal Investments
Topic: Do all Vanguard Balanced Funds Re-balance Similarly??
Replies: 4
Views: 540

Re: Do all Vanguard Balanced Funds Re-balance Similarly??

Balanced Index seems pretty firm on being 60/40 and more importantly you can be pretty sure of what the 60 and 40 are invested in going forward. That is not the same for "active" funds like Wellington, Wellesley, or even Star since the portfolio managers can change (or those of the underly...
by Dandy
Mon Sep 05, 2016 5:42 pm
Forum: Investing - Help with Personal Investments
Topic: Hmm...how would you tweak this portfolio? Can I consider early retirement?
Replies: 57
Views: 4591

Re: Hmm...how would you tweak this portfolio? Can I consider early retirement?

I would not consider at your age, expenses and portfolio size that it is a good idea to retire. 1. You have about 40 years to fund vs the "normal" of 30 or 35. 2. You are close to a 4% withdrawal and that was probably not intended for 40 years - more like 30. 3. Equity markets are at or ne...
by Dandy
Sun Sep 04, 2016 8:53 am
Forum: Investing - Theory, News & General
Topic: Morningstar--No Signs of Complacency at Vanguard Nor has it sold its soul to reach the top.
Replies: 13
Views: 1575

Re: Morningstar--No Signs of Complacency at Vanguard Nor has it sold its soul to reach the top.

Vanguard pushes U.S.-based investors, which are 90% or so of its client base by assets, to avoid home-country bias and give equal attention to foreign markets. Agreed that there is often a home country bias - for almost all investors be they US or foreign citizens. People are more familiar with the...
by Dandy
Sun Sep 04, 2016 8:15 am
Forum: Investing - Help with Personal Investments
Topic: RMD Strategy
Replies: 12
Views: 1354

Re: RMD Strategy

If you have Vanguard brokerage CDs the RMD service will not take RMDs from those assets (check to make sure). I assume you plan taking the first 10 years from your TIRA fixed income and putting the balance less withholding in your taxable account for use as needed. That will likely gradually raise y...
by Dandy
Sun Sep 04, 2016 7:55 am
Forum: Investing - Help with Personal Investments
Topic: Pension meets my needs. Skip bonds?
Replies: 26
Views: 2875

Re: Pension meets my needs. Skip bonds?

Since a COLA very secure pension meets or exceeds your needs you have little need to be conservative. Of course there are potential major expense issues like long term care that need to be considered. But, the key is you indicate you are really investing for your heirs. There are two points that I w...
by Dandy
Sat Sep 03, 2016 9:08 pm
Forum: Personal Finance (Not Investing)
Topic: How do you stop yourself from checking your balances?
Replies: 66
Views: 3809

Re: How do you stop yourself from checking your balances?

Excessive "looking" or "checking" can be addictive. Taking action because of frequent "looking" or checking can be a disaster. I check my account very frequently but rarely take any action. I check a bit less frequently when the market is down. I'll wait for an up day o...
by Dandy
Fri Sep 02, 2016 7:53 am
Forum: Investing - Help with Personal Investments
Topic: How to transition into retirement?
Replies: 14
Views: 1983

Re: How to transition into retirement?

retiring in your late 30''s is a whole different story. You have to have a plan to fund retirement for 50 years vs "normal" about 25 or 30. From a financial standpoint you have to consider if assets go south how easy would it be to earn a decent income say 10 years down the road. For many ...
by Dandy
Thu Sep 01, 2016 2:17 pm
Forum: Investing - Help with Personal Investments
Topic: How to transition into retirement?
Replies: 14
Views: 1983

Re: How to transition into retirement?

I found some peace of mind early in retirement by using Dr. Bernstein's idea of keeping 20-25 years of fixed income "safe" and investing the rest aggressively (for me). That means 2/3 of my fixed income is in short term bond funds, FDIC products, and some legacy EE bonds (earning 4% :). I ...
by Dandy
Tue Aug 30, 2016 10:45 pm
Forum: Investing - Help with Personal Investments
Topic: Liquidating Before Or After Transferring
Replies: 6
Views: 357

Re: Liquidating Before Or After Transferring

In general, I would like the new firm to handle the liquidations. Any problems and you are dealing with a firm getting your business instead of losing your business (or giving you the business :happy ). However, cost basis is critical so you need to make sure you have all the cost basis information ...
by Dandy
Tue Aug 30, 2016 5:32 pm
Forum: Personal Finance (Not Investing)
Topic: Fear and Trembling (Aug. 31st is my last day at work)
Replies: 77
Views: 9269

Re: Fear and Trembling (Aug. 31st is my last day at work)

I think you have enough assets to retire comfortably. $170k/5million is less than 4%. I know that doesn't include taxes which could affect the margin of safety. But, 50k SS in 5 years plus a spousal is a decent relief. People I know in that position have handled retirement fine. The transition from ...
by Dandy
Mon Aug 29, 2016 9:08 am
Forum: Personal Finance (Not Investing)
Topic: Can we get by without permanent life insurance?
Replies: 85
Views: 5299

Re: Can we get by without permanent life insurance?

The case for permanent insurance is weak. The thing is to not delay and buy the term for both of you. The risk, while small, is that one you becomes uninsurable. Both types of insurance provide death insurance but term ends. Just make sure you term policies are long enough and from a high rated insu...
by Dandy
Mon Aug 29, 2016 7:15 am
Forum: Investing - Theory, News & General
Topic: glide path vs. fixed asset allocation [POLL]
Replies: 50
Views: 4130

Re: glide path vs. fixed asset allocation [POLL]

I think it is great to have a plan but there are too many variables in the retirement decades to have a set it and forget it plan. I would normally be very happy with my current 42/58 allocation. My TIRA is fixed income heavy so RMDs will gradually and maybe not so gradually push my equity percentag...

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