Search found 4884 matches

by Dandy
Tue Jan 23, 2018 11:17 am
Forum: Investing - Theory, News & General
Topic: Kitces article: A cash bucket in retirement? Nope
Replies: 51
Views: 2732

Re: Kitces article: A cash bucket in retirement? Nope

Cash" like "risk" is possibly a word that should be banned from the Forum in favor of being specific regarding what one is talking about. part of the problem with these discussions is that there is no commonly accepted definition of cash so it becomes a less productive discussion since people aren'...
by Dandy
Tue Jan 23, 2018 10:06 am
Forum: Investing - Theory, News & General
Topic: Kitces article: A cash bucket in retirement? Nope
Replies: 51
Views: 2732

Re: Kitces article: A cash bucket in retirement? Nope

So why is it a big deal for some folks? I just don't know. Seems like it is for you? I just made a simple comparison - didn't talk of lopping off arms etc.which might qualify as a big deal since most can have is two. I guess scratch vs a temporary hit makes a big difference to you. I thought "tempo...
by Dandy
Tue Jan 23, 2018 8:47 am
Forum: Investing - Theory, News & General
Topic: Kitces article: A cash bucket in retirement? Nope
Replies: 51
Views: 2732

Re: Kitces article: A cash bucket in retirement? Nope

Poor cash, so unloved by many. I feel cash and cash-like products have a niche for many if not most. Let's confine cash to Money Market Funds/deposit accounts, FDIC savings and CDs, and Stable Value Funds. When interest rates rise all but brokerage CDs hold their value vs say short term bonds that t...
by Dandy
Mon Jan 22, 2018 6:07 am
Forum: Investing - Theory, News & General
Topic: Vanguard opens special offices for $1 million clients
Replies: 98
Views: 20533

Re: Vanguard opens special offices for $1 million clients

Makes sense to have some ability for high net worth clients to have the option to have a face to face. Just because a client has a lot of money doesn't mean they have a clue about investing. Some may need or only feel comfortable with a live person vs a voice on the phone when they are dealing with ...
by Dandy
Sun Jan 21, 2018 9:39 am
Forum: Personal Finance (Not Investing)
Topic: Anyone at Goldman Sachs/Marcus bank 1.5%?
Replies: 27
Views: 2417

Re: Anyone at Goldman Sachs/Marcus bank 1.5%?

Nothing against Marcus bank. But I would go to depositaccounts.com and read reviews of any bank or credit union. Often banks have subtle gotchas e.g. long holding periods, transfer amount limitations, really bad customer service, etc. One credit union I use had a negative review of their checking ac...
by Dandy
Sun Jan 21, 2018 9:19 am
Forum: Investing - Theory, News & General
Topic: Fear of dying with too much money?
Replies: 137
Views: 7690

Re: Fear of dying with too much money?

I think we wouldn't be having this conversation if we weren't in the midst of a very long bull market. That subtly leaves you with the idea that your nest egg balance is a bit more secure than it likely is. The point is valid though of trying not to be so habitually frugal that you die with massive ...
by Dandy
Fri Jan 19, 2018 5:14 pm
Forum: Investing - Theory, News & General
Topic: Amazing how much your IPS can de-stress your life
Replies: 29
Views: 3919

Re: Amazing how much your IPS can de-stress your life

I think making an IPS when you and the market are calm is a very good idea. I think in retirement when most if not all of human capital is gone and you have a healthy withdrawal and only a modest income floor a market plunge may not be easy to handle despite the IPS. Living in that personal and mark...
by Dandy
Fri Jan 19, 2018 3:03 pm
Forum: Investing - Theory, News & General
Topic: 10 years expenses in FI
Replies: 49
Views: 4764

Re: 10 years expenses in FI

I think the sleep well factor is important, but not the only factor to be considered for retirement investing. The usual loss of human capital coupled with withdrawals lends itself to having asset preservation gain more importance than growth for many. Having a portion of a retirees investments in p...
by Dandy
Fri Jan 19, 2018 8:43 am
Forum: Personal Finance (Not Investing)
Topic: Stats on When People Take Social Security
Replies: 173
Views: 11464

Re: Stats on When People Take Social Security

1. 2008 age 60 lost job but had a modest pension and retiree health insurance 2. Waited until age 65 to collect max additional small pension 3. Wife took SS at age 62 (low wage earner) 4. My age 66 took spousal on wife's SS 5. 2018 will take full SS at age 70 in March Goal was to maximize retirement...
by Dandy
Thu Jan 18, 2018 3:24 pm
Forum: Investing - Theory, News & General
Topic: 10 years expenses in FI
Replies: 49
Views: 4764

Re: 10 years expenses in FI

I'm not a fan of the excess being 100% equities for most people --I think people are getting a bit giddy with a long bull run and a great start to 2018. For most I think retirement should shift the investment goal a bit toward asset preservation vs growth. If you go down that 100% equity route I wou...
by Dandy
Thu Jan 18, 2018 9:12 am
Forum: Investing - Help with Personal Investments
Topic: Portfolio Help for Retiree
Replies: 9
Views: 771

Re: Portfolio Help for Retiree

One thing to consider is an immediate annuity if not now maybe later for a portion of your investments. You seem to have "enough" and a bit more. Dr. Wm Bernstein suggests those in that position put 20-25 years of their yearly draw down dollars in "safe" products and invest the rest anyway they want...
by Dandy
Tue Jan 16, 2018 5:52 pm
Forum: Personal Finance (Not Investing)
Topic: Got raise. Taxes taking 41% of it?
Replies: 30
Views: 3893

Re: Got raise. Taxes taking 41% of it?

I know it doesn't feel like at this time but Medicare and SS taxes are "investments/savings/benefits" for your future. Hopefully, they will be there for you like they are and will be for me and my spouse. I am retired and will begin to collect SS at age 70 in March. It is almost equal to my pension ...
by Dandy
Tue Jan 16, 2018 9:43 am
Forum: Personal Finance (Not Investing)
Topic: why emergency savings?
Replies: 42
Views: 3719

Re: why emergency savings?

Most investors have a decent allocation to fixed income. Total Bond is popular with a current yield of 2.61%. Another popular choice for an emergency fund is Intermediate Tax Free Fund with a current yield of 2.04%. Both tend to be "a drag" on long term performance vs having more assets in equities....
by Dandy
Mon Jan 15, 2018 10:35 pm
Forum: Investing - Help with Personal Investments
Topic: CDs & Savings as a substitute for bonds or bond funds
Replies: 20
Views: 2284

Re: CDs & Savings as a substitute for bonds or bond funds

reinvestment of brokerage CD interest is not as much of a disadvantage in a rising rate environment especially for shorter terms.
by Dandy
Mon Jan 15, 2018 10:50 am
Forum: Investing - Help with Personal Investments
Topic: CDs & Savings as a substitute for bonds or bond funds
Replies: 20
Views: 2284

Re: CDs & Savings as a substitute for bonds or bond funds

Since most investment firms and advisers don't make any money on selling or recommending CDs or Savings accounts and since they can't be traded (except for brokerage CDs) you can understand that people tend to refer to allocations as stocks and bonds. It used to be stocks/bonds/cash. If your fixed i...
by Dandy
Sun Jan 14, 2018 9:34 am
Forum: Investing - Help with Personal Investments
Topic: Vanguard Personal Advisory Services Fees
Replies: 33
Views: 2197

Re: Vanguard Personal Advisory Services Fees

I believe some previous posts suggested that the recommended portfolios were somewhat or very close to some TD or LIfe Strategy Funds. That would make some sense since those funds are designed with Vanguard's approach to how people should invest for and in retirement. You are unlikely to find them m...
by Dandy
Sat Jan 13, 2018 4:57 pm
Forum: Investing - Help with Personal Investments
Topic: Rethinking the use of Vanguard Total Bond Fund in my 3 Fund Porfolio
Replies: 5
Views: 900

Re: Rethinking the use of Vanguard Total Bond Fund in my 3 Fund Porfolio

With the exception that treasuries and munis are exempt from federal taxes Treasuries are not exempt from Federal Taxes - state taxes but not Federal. People who do not favor Total Bond often use the Intermediate Bond Index. Mr. Bogle feels that total bond has too much Treasuries and would suggest ...
by Dandy
Sat Jan 13, 2018 8:04 am
Forum: Investing - Help with Personal Investments
Topic: Anyone tired of the stock market going up?
Replies: 290
Views: 26032

Re: Anyone tired of the stock market going up?

I'm not a fan of roller coasters and I feel that fear as the equity car keeps climbing up the track slowly and surely and the people on the ground are looking very small. :oops:
by Dandy
Sat Jan 13, 2018 8:00 am
Forum: Investing - Help with Personal Investments
Topic: How many years of fixed income for Sequence of Return Risk
Replies: 26
Views: 1972

Re: How many years of fixed income for Sequence of Return Risk

I am pretty risk averse but if all you want is to likely bridge to when the equity market recovers then 5 years is probably a good idea. I like your focus on CD, TIPS and short term bond funds for this portion of your portfolio - I think that is where this type of funding should be kept. I also agre...
by Dandy
Fri Jan 12, 2018 3:16 pm
Forum: Investing - Help with Personal Investments
Topic: Help me stop my addiction to stock market peeping!
Replies: 66
Views: 4485

Re: Help me stop my addiction to stock market peeping!

If you are that anxious about your investments in the midst of an historic bull market you will be on the ledge should there be even a modest correction. I think it is fine to check investments very often -- if it doesn't create anxiety or motivate rash moves. In your case you might be better served...
by Dandy
Fri Jan 12, 2018 6:55 am
Forum: Investing - Help with Personal Investments
Topic: Yet another Retiree Emergency Fund Question - Income floor vs EF?
Replies: 13
Views: 777

Re: Yet another Retiree Emergency Fund Question - Income floor vs EF?

I never had something earmarked as an emergency fund. But -- I always had a decent allocation to cash/cashlike products. I do think retirees need to have an allocation to cash/cash-like products. While loss of job may not be something retirees are concerned about don't forget with the loss of human ...
by Dandy
Thu Jan 11, 2018 7:20 am
Forum: Investing - Help with Personal Investments
Topic: Sequence of Return Risk impact on Retirement
Replies: 103
Views: 4286

Re: Sequence of Return Risk impact on Retirement

A bad sequence of returns near or in early retirement can impact portfolio management and other things 1. "enough" turns to not enough affecting retirement planning 2. do you keep buying equities while they are declining? Much easier when you have lots of human capital and a company match. (easier i...
by Dandy
Tue Jan 09, 2018 8:06 am
Forum: Personal Finance (Not Investing)
Topic: Surrender of paid-up additions on whole life policy
Replies: 2
Views: 402

Re: Surrender of paid-up additions on whole life policy

1) I realize I should have researched this before deciding to do so, but did I do the right thing to surrender the PUAs to pay down my loans? Probably given you are being charged 8% for your loan. A lot of answers will depend on how much you need the insurance and your other financial situation e.g...
by Dandy
Tue Jan 09, 2018 7:41 am
Forum: Investing - Theory, News & General
Topic: Living on Dividends and Interest
Replies: 19
Views: 2596

Re: Living on Dividends and Interest

Living well off of just dividends can be great. Now if the dividends were because you had everything tied up in a few individual stocks that would not be great. If the dividends were from a well diversified, low cost, passive mutual fund portfolio that would be ideal.
by Dandy
Tue Jan 09, 2018 7:36 am
Forum: Investing - Theory, News & General
Topic: Why Buy Bonds If You Have A Mortgage?
Replies: 187
Views: 17463

Re: Why Buy Bonds If You Have A Mortgage?

I would opt for liquidity vs paying down. When times get tough having liquidity will be appreciated in general and for possible re balancing when equities are cheaper. Your mortgage rate is great and you can find some 2 or 3 year CDs that pay that % or more - with interest rates likely to rise, the ...
by Dandy
Tue Jan 09, 2018 7:27 am
Forum: Investing - Theory, News & General
Topic: Early Retirement Planning Strategy
Replies: 16
Views: 2266

Re: Early Retirement Planning Strategy

It is great to have a plan/goal. There are so many unknowns when you look that far forward. So, keep the idea alive and control what you can e.g. expenses, savings, allocation, etc. As you get closer the picture of how you will handle health insurance, bridging to Social Security/Medicare will start...
by Dandy
Tue Jan 09, 2018 6:39 am
Forum: Investing - Theory, News & General
Topic: Year 2000 retirees using the '4% rule' - Where are they now?
Replies: 354
Views: 33680

Re: Year 2000 retirees using the '4% rule' - Where are they now?

I think the message is that the "rule" should be a "guide". You don't want to amp up hard expenses (those not easily cut) close to the 4% guide so you leave little room for making spending adjustments when investments are tanking. It seems likely that most people will know enough to cut back on some...
by Dandy
Tue Jan 09, 2018 6:23 am
Forum: Investing - Help with Personal Investments
Topic: Help with giving inheritance money to mother
Replies: 16
Views: 1739

Re: Help with giving inheritance money to mother

An immediate annuity is a good choice but brother can still borrow especially if he knows about additional income. Another idea might be to pay some of mom's bill directly e.g. her car, home, life, health insurance etc. that might increase her disposal income without making it obvious.
by Dandy
Mon Jan 08, 2018 12:22 pm
Forum: Investing - Theory, News & General
Topic: Memo to those who have won the game: it's time to quit playing
Replies: 210
Views: 17754

Re: Memo to those who have won the game: it's time to quit playing

There's a "bigger" game than strategizing one's portfolio to last through retirement. If one has an opportunity to be benevolent, then it's time to "pay it forward". Decent point. But don't forget that there is also a point of not subjecting your heirs to need to help you financially in your old ag...
by Dandy
Mon Jan 08, 2018 7:54 am
Forum: Investing - Theory, News & General
Topic: Memo to those who have won the game: it's time to quit playing
Replies: 210
Views: 17754

Re: Memo to those who have won the game: it's time to quit playing

I follow Dr. Bernstein's idea of having 20 or more of my yearly draw down in "safe" products. My overall allocation is 43/57. I do want a decent allocation to equities to provide some additional inflation protection and because I can take some risk even though I may not need to take this level of ri...
by Dandy
Sun Jan 07, 2018 8:52 am
Forum: Investing - Help with Personal Investments
Topic: Am I market timing with my newly considered AA?
Replies: 11
Views: 862

Re: Am I market timing with my newly considered AA?

As you approach "enough" asset preservation becomes more important than growth. Also, allocation percentages tend to distort the risk which is in dollars. There is also a tendency to believe if someone cuts their equity allocation from 80% to 60% or 50% that they will not have enough growth. Finally...
by Dandy
Sun Jan 07, 2018 8:37 am
Forum: Investing - Help with Personal Investments
Topic: Another - Starting Social Security Question
Replies: 30
Views: 1913

Re: Another - Starting Social Security Question

There is no immediate necessity of SS money to maintain our lifestyle. I think that is one important factor supporting delay in collecting SS. The beauty of SS is that if you delay you can always change your mind if conditions change and benefit by higher SS even if you collect earlier than origina...
by Dandy
Thu Jan 04, 2018 7:26 am
Forum: Investing - Help with Personal Investments
Topic: Question on Fixed part of my 3 fund
Replies: 2
Views: 254

Re: Question on Fixed part of my 3 fund

I would keep it for now especially since rates are in a slow rising trend. But, a lot depends on your alternatives in your plan. If there are low cost fixed income options you might want to use one for some of your fixed income, if not now then down the road.
by Dandy
Wed Jan 03, 2018 6:05 pm
Forum: Investing - Help with Personal Investments
Topic: Age In Bonds after 65 with 25X, 35X, 50X ??? Your Approach?
Replies: 35
Views: 2876

Re: Age In Bonds after 65 with 25X, 35X, 50X ??? Your Approach?

I recognize that both of these decisions will likely reduce my portfolio return. However, since I have “enough”, I am comfortable being conservative and playing defense. That is a point often missed - at some level of assets and age portfolio return can be less important then asset preservation. Yo...
by Dandy
Wed Jan 03, 2018 3:28 pm
Forum: Investing - Help with Personal Investments
Topic: Age In Bonds after 65 with 25X, 35X, 50X ??? Your Approach?
Replies: 35
Views: 2876

Re: Age In Bonds after 65 with 25X, 35X, 50X ??? Your Approach?

I think having more than 2 buckets can be a hassle. But if it works for you then great. I like to think Portfolios rather than buckets (ok it is just a different name but is isn't about lots of filllng) "Safe" portfolio - for me includes short term bond funds and other "safe" products e.g CDs, "Risk...
by Dandy
Wed Jan 03, 2018 7:11 am
Forum: Investing - Help with Personal Investments
Topic: Age In Bonds after 65 with 25X, 35X, 50X ??? Your Approach?
Replies: 35
Views: 2876

Re: Age In Bonds after 65 with 25X, 35X, 50X ??? Your Approach?

I think age in bonds is a reasonable rule of thumb but not something that takes the place of a well thought out investment allocation based on individual circumstances e.g. risk tolerance, income floor, expense growth, human capital/age, other assets, plans for inheritance, insurance/LTC, etc. For t...
by Dandy
Mon Jan 01, 2018 4:23 pm
Forum: Personal Finance (Not Investing)
Topic: Are you generous? If so, why?
Replies: 7
Views: 1168

Re: Are you generous? If so, why?

I don't really know. If you go by dollars and include family gifts as well as charity I'm looking pretty good but when you look at the percentage of my savings/investments I could do better. I'll be 70 next month and will get full SS soon as I age further and nest egg retains value or grows maybe I ...
by Dandy
Mon Jan 01, 2018 12:01 pm
Forum: Investing - Help with Personal Investments
Topic: Asset Allocation
Replies: 7
Views: 583

Re: Asset Allocation

You are entering "interesting times" as the saying goes. The transition from working to retiring has personal and financial issues to manage. On the financial side there is health insurance until qualifying for Medicare, when to take Social Security and possibly pension, funding of retirement until ...
by Dandy
Mon Jan 01, 2018 9:19 am
Forum: Personal Finance (Not Investing)
Topic: Incorporating uncertain pension amount into net worth calculation
Replies: 37
Views: 3088

Re: Incorporating uncertain pension amount into net worth calculation

What is the purpose or value you expect from your calculation of net worth? It is an interesting exercise but I never focused on that value. I wanted to know the value of my investments/savings and potential future income so that I could determine what my retirement lifestyle would be. Sure, I knew ...
by Dandy
Mon Jan 01, 2018 8:55 am
Forum: Personal Finance (Not Investing)
Topic: Did you get an Unexpected Year End Bonus because of the Tax Cut?
Replies: 44
Views: 3305

Re: Did you get an Unexpected Year End Bonus because of the Tax Cut?

Great that several companies are sharing some of their tax cut benefits with their employees even before the firms have actually experienced the actual tax benefit. So you don't look a gift horse in the mouth. One goal of the corporate tax cut was to increase the wages of the middle class. I hope co...
by Dandy
Sun Dec 31, 2017 6:41 am
Forum: Personal Finance (Not Investing)
Topic: What is your threshold for paying down debt?
Replies: 89
Views: 5803

Re: What is your threshold for paying down debt?

Depends on the reason for the debt, the size of the debt and the interest rate. e.g. a mortgage with 20% down or more on a house that you can afford is probably a decent use of debt if it is a traditional 15 years or more mortgage at 4%. Not so good with no money down, adjustable rate etc. Going for...
by Dandy
Sun Dec 31, 2017 6:22 am
Forum: Investing - Theory, News & General
Topic: Paying off mortgage before investing at all?
Replies: 75
Views: 7632

Re: Paying off mortgage before investing at all?

A lot depends on the circumstances. 1. Mortgage rates are historically pretty low a lot depends on the rate. ( my rate was 8% in 1974 :oops: ). 2. Mortgage tax deductions may not be as easy going forward as they once were 3. How much extra disposal income do you have? 4. You want to get the power of...
by Dandy
Sun Dec 31, 2017 5:58 am
Forum: Investing - Help with Personal Investments
Topic: Really risk adverse, advise please ...
Replies: 14
Views: 1826

Re: Really risk adverse, advise please ...

No problem with seeing a fee only adviser but your ongoing issue is going to be execution e.g. re balancing etc. I think you need to get out of individual stocks and put some of your assets in balanced or all in one funds. e.g. Life Strategy, Target Date, Balanced Index, Wellesley Income Funds, etc....
by Dandy
Fri Dec 29, 2017 8:23 am
Forum: Investing - Help with Personal Investments
Topic: BOA Savings Acct vs Amex High Yield Personal Savings Acct
Replies: 13
Views: 868

Re: BOA Savings Acct vs Amex High Yield Personal Savings Acct

BOA Savings account like most big banks is a rip off. I believe they are paying something like 0.04%. I have used BOA checking and it has convenient locations for me. But, I have moved most of my banking assets and activity to 2 online banks/credit unions and I get much better rates and 24/7 custome...
by Dandy
Thu Dec 28, 2017 4:10 pm
Forum: Investing - Theory, News & General
Topic: What the experts say about Bitcoins?
Replies: 114
Views: 7850

Re: What the experts say about Bitcoins?

That's the trouble with highly educated experts. They all think they're so smart. Highly educated experts are usually very smart. A flaw can be when they think their expertise applies outside their field of study/expertise. e.g. A great economist may have little to offer on politics or investing. D...
by Dandy
Tue Dec 26, 2017 12:34 pm
Forum: Investing - Help with Personal Investments
Topic: Should I preserve parents’ risky portfolio? Or “disobey” them?
Replies: 74
Views: 4946

Re: Should I preserve parents’ risky portfolio? Or “disobey” them?

How about enough bonds/CDs/etc for 15 years of the parents' expenses. The rest completely in stocks or 80% stocks/20% bonds. That will give the parents safety and the potential to maximize the amount the heirs get. I feel that the OP is in a fiduciary position and should focus the investments witho...
by Dandy
Tue Dec 26, 2017 10:44 am
Forum: Investing - Help with Personal Investments
Topic: Should I preserve parents’ risky portfolio? Or “disobey” them?
Replies: 74
Views: 4946

Re: Should I preserve parents’ risky portfolio? Or “disobey” them?

I think that you are responsible for their financials. It is not prudent in my opinion for their very high equity allocation and over reliance on individual stocks. I think their former adviser was not good for doing such a high risk portfolio. So I would ignore what the adviser did and your parent'...
by Dandy
Tue Dec 26, 2017 8:55 am
Forum: Personal Consumer Issues
Topic: What frugal thing did you do today?
Replies: 316
Views: 23573

Re: What frugal thing did you do today?

Many frugal actions have benefits every day. e.g. investing in low cost index funds, avoiding credit card debt, etc.
by Dandy
Tue Dec 26, 2017 8:47 am
Forum: Investing - Theory, News & General
Topic: At What Point Do you Just Only Play with "House Money"
Replies: 27
Views: 2257

Re: At What Point Do you Just Only Play with "House Money"

House money, found money, paying only with winnings, etc we all know it is all the same money - our money. I have no problem with those who have enough or are near retirement or in early retirement making their allocation more conservative. That is essentially what you are doing with the combination...
by Dandy
Tue Dec 26, 2017 8:17 am
Forum: Investing - Help with Personal Investments
Topic: Creating a Mid-Tier Emergency Fund
Replies: 21
Views: 2307

Re: Creating a Mid-Tier Emergency Fund

Several Ally Bank 11 month no penalty CDs paying 1.75% is a good choice. If rates go higher you can redeem and buy the higher rate without any early redemption fee. Several instead of 1 since if you need some $$ you don't have to cancel the entire amount.