Search found 4102 matches

by Dandy
Sun Jul 24, 2016 11:59 pm
Forum: Personal Finance (Not Investing)
Topic: Getting rid of Credit cards
Replies: 34
Views: 2963

Re: Getting rid of Credit cards

I think you should have at least 2 credit cards and if married maybe a different set for your spouse. If you lose or have fraud issues on one credit card you don't want to be without the ability/necessity to charge until a replacement card is sent, especially on vacation. I want my spouse to carry a...
by Dandy
Sun Jul 24, 2016 4:28 pm
Forum: Investing - Theory, News & General
Topic: Help Me Understand: Why Shouldn't AA Be 100% Stocks During Accumulation Phase?
Replies: 87
Views: 4410

Re: Help Me Understand: Why Shouldn't AA Be 100% Stocks During Accumulation Phase?

At age 45 you are toward the end of the accumulation stage. Not many trusted investment guru's would recommend 100% that late in the accumulation stage. You also haven't experienced a significant equity market decline since you weren't in the equity market in 2008. Also, you are talking about going ...
by Dandy
Sun Jul 24, 2016 4:14 pm
Forum: Investing - Help with Personal Investments
Topic: Bonds at an historic high; time to get out?
Replies: 37
Views: 3179

Re: Bonds at an historic high; time to get out?

I'm in retirement with asset preservation as a main goal and 42% allocation to equities. I feel you pain, it is a very difficult investment situation for most retirees. I prefer a somewhat balanced fixed income approach of approximately 1/3 intermediate duration (including TIPS) bond funds, 1/3 shor...
by Dandy
Sun Jul 24, 2016 3:53 pm
Forum: Investing - Help with Personal Investments
Topic: Dump $5500 to Roth IRA on Day 1 of every year or split contribution to 12 months?
Replies: 32
Views: 2879

Re: Dump $5500 to Roth IRA on Day 1 of every year or split contribution to 12 months?

In general lump sum early. A max contribution of $5,500 for most people isn't enough to worry about. For large amounts I would DCA a portion when equity markets are at or near market highs.
by Dandy
Sun Jul 24, 2016 12:00 pm
Forum: Personal Finance (Not Investing)
Topic: Retirement, House, Kids - How to afford all three?
Replies: 61
Views: 4477

Re: Retirement, House, Kids - How to afford all three?

Today it is much hard to do all 3 on one income. Unfortunately, cutting back on retirement savings in addition to whatever other expense cuts you can think of seems to be what will happen. Kids are expensive but for most a key joy in life. Good luck.
by Dandy
Sat Jul 23, 2016 5:09 pm
Forum: Investing - Help with Personal Investments
Topic: Does pension affect asset allocation?
Replies: 18
Views: 1539

Re: Does pension affect asset allocation?

80/20 is plenty aggressive. Having a potential pension decades from now is potentially a really good thing. I would not up your equity allocation to a more aggressive allocation. If you actually get the pension you might be able to take more risk in your actual retirement portfolio if you choose -- ...
by Dandy
Sat Jul 23, 2016 12:13 pm
Forum: Investing - Help with Personal Investments
Topic: Feelings changing about AA as annual savings amount increases?
Replies: 22
Views: 1662

Re: Feelings changing about AA as annual savings amount increases?

As dollars at stake grow so does the feelings of risk. It is often quite easy to be 80/20 when there are only 10 or 20k of assets but when there are 100k or 200k it often feels different. A 50% plunge with only 20k of assets can often be made up by a year or two of contributions not always the same ...
by Dandy
Fri Jul 22, 2016 3:01 pm
Forum: Investing - Help with Personal Investments
Topic: 4% rule - Asset Allocation
Replies: 54
Views: 4264

Re: 4% rule - Asset Allocation

I'm following your thinking here but, given my occupation and industry, only have one (1) shot to get it right - there's no going back. Thus, my conservatism. To try to side-step the sequence of returns risk in the first few years of retirement, I've come up with the following SWR plan: - Year 1: S...
by Dandy
Fri Jul 22, 2016 11:16 am
Forum: Personal Finance (Not Investing)
Topic: How many folks choose to give inheritance to their children in unequal portions?
Replies: 163
Views: 11221

Re: How many folks choose to give inheritance to their children in unequal portions?

Of course there are people and families that just don't make problems and other people and families that will find a problem in every situation.


Well said.
by Dandy
Fri Jul 22, 2016 9:18 am
Forum: Personal Finance (Not Investing)
Topic: How many folks choose to give inheritance to their children in unequal portions?
Replies: 163
Views: 11221

Re: How many folks choose to give inheritance to their children in unequal portions?

Dandy wrote: Fair doesn't always mean equal. Dandy, I'm curious about this. What kind of situations (besides disability) would it be more fair to leave an unequal amount to each child? I did say I expect to leave them equal amounts upon death. I have seen many people obsess about equal. We helped on...
by Dandy
Fri Jul 22, 2016 6:46 am
Forum: Personal Finance (Not Investing)
Topic: How many folks choose to give inheritance to their children in unequal portions?
Replies: 163
Views: 11221

Re: How many folks choose to give inheritance to their children in unequal portions?

Fair doesn't always mean equal. But most times it does. We will probably leave our money equally to our 2 children. One worked hard in the arts which doesn't pay well and married late. I will probably help them more while we are alive to try to insure that they can catch up. The other has 2 children...
by Dandy
Fri Jul 22, 2016 6:16 am
Forum: Investing - Help with Personal Investments
Topic: A Well Balanced Portfolio?
Replies: 14
Views: 1257

Re: A Well Balanced Portfolio?

I like adding TIPS especially as you get close or are in retirement. I wonder if some of the reason people prefer not to include TIPS is that inflation has been especially tame for a number of years. VG TIPS fund is up 6+% ytd actually more than the Total Bond fund not sure why since inflation still...
by Dandy
Fri Jul 22, 2016 5:45 am
Forum: Investing - Help with Personal Investments
Topic: 4% rule - Asset Allocation
Replies: 54
Views: 4264

Re: 4% rule - Asset Allocation

With US equities at an historic high and interest rates at an historic low you need to be careful basing your withdrawal strategy on historic results no matter how respected the study. It's ok for a place to start but I don't think any withdrawal approach is set it and forget it. So, every few years...
by Dandy
Thu Jul 21, 2016 12:33 pm
Forum: Investing - Theory, News & General
Topic: VTEB: Better than online savings accounts? [Vanguard Tax-Exempt Bond ETF]
Replies: 22
Views: 3148

Re: VTEB: Better than online savings accounts?

What I am personally slowly learning is that everything is situation dependent. What makes sense in your 20s with a $100K doesn't necessarily in your 50s with $1,000K. I think it is the whole Bernstein won the game thing, which up until I really felt I had won the game seemed illogical. But over th...
by Dandy
Thu Jul 21, 2016 12:27 pm
Forum: Investing - Theory, News & General
Topic: Remind me once again why I can't time the market?
Replies: 65
Views: 5693

Re: Remind me once again why I can't time the market?

It isn't a sure winner or sure loser. Probably was better when cash paid 5% or so than zero. It will almost always feel like a winning strategy since when you buy on a dip and see the fund rise you feel smart. Of course when you hold cash earning near zero and the market rises you say ok but you rea...
by Dandy
Thu Jul 21, 2016 6:35 am
Forum: Investing - Help with Personal Investments
Topic: Just got back from Europe...ready to sell my International...
Replies: 82
Views: 9338

Re: Just got back from Europe...ready to sell my International...

Hard to see good things on the interim horizon -- but that is often the time to buy. Being in retirement and in good financial shape I continue to underweight international equities. I'd be and was a bit more aggressive in my accumulation years.
by Dandy
Fri Jul 15, 2016 5:52 am
Forum: Investing - Theory, News & General
Topic: "How saving too much can make your retirement less satisfying"
Replies: 52
Views: 7400

Re: "How saving too much can make your retirement less satisfying"

Life balance is the key. You can't get opportunities to enjoy life/family back if you are too frugal and you may not be able to enjoy a reasonable retirement if you aren't frugal enough. I was/am fairly frugal but during the accumulation years especially when the kids were young we did "spurge&...
by Dandy
Wed Jul 13, 2016 3:05 pm
Forum: Investing - Help with Personal Investments
Topic: CD question: would you take 3% guaranteed for 7 years?
Replies: 45
Views: 4357

Re: CD question: would you take 3% guaranteed for 7 years?

If it is in an TIRA and it is very unlikely to be tapped it is a decent diversification of your fixed income allocation. I would not put too much of your fixed income allocation in the CD but for a modest portion I would. There may be some buyer's regret should interest or inflation rates rise a lot...
by Dandy
Tue Jul 12, 2016 1:27 pm
Forum: Investing - Help with Personal Investments
Topic: Balanced Index Fund
Replies: 8
Views: 866

Re: Balanced Index Fund

Adding some international equity exposure to Balanced Index makes sense. Whether to limit it to developed markets I don't know. I tend to like developed markets but if you aren't in or close to retirement I would probably go for a wider exposure e.g. Total International for example.
by Dandy
Tue Jul 12, 2016 9:29 am
Forum: Investing - Theory, News & General
Topic: Maintaining 3-10 yrs expenses in fixed income in retirement rather than set %
Replies: 107
Views: 7471

Re: Maintaining 3-10 yrs expenses in fixed income in retirement rather than set %

What is your investment goal in retirement? I feel many in the accumulation phase have a goal to reach a certain level of assets by the time they retire i.e. their number. The choose an allocation and savings rate that they expect to get them there. Upon reaching retirement many seem to just continu...
by Dandy
Tue Jul 12, 2016 8:59 am
Forum: Investing - Help with Personal Investments
Topic: Emergency Fund
Replies: 10
Views: 1042

Re: Emergency Fund

at age 30 the most likely need for an emergency fund is loss of job(s)/income. So figure out what income you need each month to support your normal monthly expenses e.g. rent, utilities, food, insurance etc. Now you want to have 3-6 times that amount in a safe product that is easily and quickly avai...
by Dandy
Tue Jul 12, 2016 8:49 am
Forum: Investing - Help with Personal Investments
Topic: S&P500 vs 3.5% Guaranteed
Replies: 22
Views: 2767

Re: S&P500 vs 3.5% Guaranteed

Being 100% in equities and then being 100% out of equities is the problem. Waiting for the right time to put 100% back into the market, if that is what your are thinking, is doing the same unwise thing -- in my opinion. Let's face it with equities at an historic high and interest rates (outside of y...
by Dandy
Mon Jul 11, 2016 6:46 am
Forum: Investing - Theory, News & General
Topic: Is this Allocation ok
Replies: 9
Views: 596

Re: Is this Allocation ok

50% stock is a reasonable equity allocation at your age - a bit conservative but well within the "norm". Your cash position is a bit large but sometimes that depends on what is considered cash. With interest rate so low it is hard to make a case that a 1% Savings account, for example, is t...
by Dandy
Sun Jul 10, 2016 10:21 am
Forum: Investing - Help with Personal Investments
Topic: gearing [using Leverage]
Replies: 32
Views: 1873

Re: gearing [using Leverage]

I'm against it. I would be very careful about borrowing money, even at low rates, to invest. Leverage is great when it works but can be really bad when it doesn't. You can make a case for it but why put your house at risk. What looks like opportunity may be just greed and impatience. Boglehead type ...
by Dandy
Sat Jul 09, 2016 4:04 pm
Forum: Investing - Help with Personal Investments
Topic: Roth IRA - Bonds or Stocks?
Replies: 7
Views: 604

Re: Roth IRA - Bonds or Stocks?

I like to have both equities and fixed income in TIRA, Roth and taxable accounts. Most aggressive in taxable, then Roth (smallest) and least aggressive in TIRA (largest). A lot depends on the individual. I figure I may never need to tap the small Roth accts, may not ever need to tap the taxable acco...
by Dandy
Sat Jul 09, 2016 11:06 am
Forum: Investing - Help with Personal Investments
Topic: how much is enough? [in cash]
Replies: 16
Views: 2839

Re: how much is enough? [in cash]

I see retirement investing for most as very different from investing in the accumulation stage. Loss of human capital, no contributions or company matches to investments, decades of life expenses that need to be funded, etc. If you feel you essentially have enough in your retirement assets and maybe...
by Dandy
Sat Jul 09, 2016 10:39 am
Forum: Investing - Help with Personal Investments
Topic: Perspective on Asset Allocation in Retirement Situation
Replies: 18
Views: 1200

Re: Perspective on Asset Allocation in Retirement Situation

I'm in a pretty good financial situation waiting to collect SS at 70 in 18 months. I have 2 children and 2 (so far grandchildren). So my position financially is somewhat similar except I may have a bit stronger desire to leave a nice inheritance. Currently at 42/58 allocation. I expect the equity al...
by Dandy
Fri Jul 08, 2016 2:48 pm
Forum: Investing - Theory, News & General
Topic: What's your asset allocation and why?
Replies: 103
Views: 5367

Re: What's your asset allocation and why?

I'm retired age 68 and am lucky to have "enough" so my overall allocation is currently about 42% equities and 58% fixed income. I generally follow Dr. Bernstein's idea of having 20-25 years worth of retirement draw down in "safe' fixed income. I tilt with Small Cap Index (stopped addi...
by Dandy
Fri Jul 08, 2016 7:54 am
Forum: Investing - Theory, News & General
Topic: Actionable Advice: What to do if Japan happens here?
Replies: 36
Views: 3332

Re: Actionable Advice: What to do if Japan happens here?

My approach is that at a certain point you stop rebalancing into equities. In retirement I'm not going to let my assets go below the level that is needed to fund my retirement until age 90. That means at a certain level above that red line I'm not going to rebalance into equities. I would probably a...
by Dandy
Fri Jul 08, 2016 7:25 am
Forum: Investing - Help with Personal Investments
Topic: Treat Social Security (and Pension) Like Bonds and Maximize Equities?
Replies: 16
Views: 1472

Re: Treat Social Security (and Pension) Like Bonds and Maximize Equities?

Because you need equities growth to counter inflation and avoid spending down principal in retirement, why would you not consider inflation-adjusted social security (and a pension) act as your bond/s permitting you to risk more investment in your 401K mutual funds equities before and/or during reti...
by Dandy
Fri Jul 08, 2016 7:10 am
Forum: Investing - Help with Personal Investments
Topic: What to do with EE bonds
Replies: 6
Views: 945

Re: What to do with EE bonds

Your approach seems good. I sent my EE bonds to Treasury Direct. The system takes a bit to get used to but I like that when the bonds mature they send you an email. Once your bank account is linked it is easy to transfer the matured bond proceeds directly to your checking account. You can also get t...
by Dandy
Fri Jul 08, 2016 6:57 am
Forum: Investing - Help with Personal Investments
Topic: To TIPS or Not to TIPS
Replies: 45
Views: 3820

Re: To TIPS or Not to TIPS

Being in retirement may be different but I allocate a decent percentage of my fixed income to the TIPS fund. Total Bond Fund is great but it leaves some fixed income products out e.g. TIPS, CDs, EE bonds, I bonds, muni bonds, foreign bonds? Since I have almost 60% allocated to fixed income I feel th...
by Dandy
Thu Jul 07, 2016 4:23 pm
Forum: Investing - Theory, News & General
Topic: "The Thirteen Word Retirement Plan"
Replies: 21
Views: 3472

Re: "The Thirteen Word Retirement Plan"

Is this simple becoming simplistic? Something like "get great abs for only 9 minutes a day" I hope the book, which should be about 5 pages is more substantial than the catchy title.
by Dandy
Thu Jul 07, 2016 4:15 pm
Forum: Investing - Theory, News & General
Topic: "Why most retirees will never spend down their portfolio" by Michael Kitces
Replies: 89
Views: 10574

Re: "Why most retirees will never spend down their portfolio" by Michael Kitces

Which thread was that? Yes, life insurance can be very valuable in either of those cases; I don't understand why this is not better understood. :confused Most investment oriented advice is buy term and invest the difference. Term gets very expensive in retirement as would make sense. Buying whole l...
by Dandy
Thu Jul 07, 2016 2:14 pm
Forum: Investing - Theory, News & General
Topic: "Why most retirees will never spend down their portfolio" by Michael Kitces
Replies: 89
Views: 10574

Re: "Why most retirees will never spend down their portfolio" by Michael Kitces

I would hope not -- end of life expenses can be very significant and we don't know when and how we will die. I'm sure there are many times people late in retirement could afford to spend more but their illness and/or infirmity or that of their spouse may not permit it. On the other hand those who ha...
by Dandy
Thu Jul 07, 2016 7:36 am
Forum: Investing - Theory, News & General
Topic: Fixed 60/40 AA in retirement
Replies: 105
Views: 9009

Re: Fixed 60/40 AA in retirement

Having 25X drawdown in retirement investment "safe" assets is a high bar and likely beyond what most retirees can hope for. Add to that it would make sense to have some extra "risk"assets targeted for growth. I think it boils down to 2 groups: 1.You have 25X drawdown and some ext...
by Dandy
Tue Jul 05, 2016 9:10 pm
Forum: Personal Finance (Not Investing)
Topic: When to Count Social Security
Replies: 28
Views: 1822

Re: When to Count Social Security

While there is some uncertainly related to Social Security and the word used is that it will be bankrupt in X years often get misunderstood. It doesn't mean there will be no payments just that the payments won't be what was promised. It usually mentions about 70% of what was promised. There are othe...
by Dandy
Tue Jul 05, 2016 8:56 pm
Forum: Investing - Theory, News & General
Topic: "Less is More"
Replies: 15
Views: 2976

Re: "Less is More"

Cutting from 90? to half that number of funds still leaves a lot of complexity. The savings seem to have been because the funds that were cut had higher expenses. Wonder how high the remaining choices were. Many plans have all high fee choices which is a real crime that should be stopped. My daughte...
by Dandy
Tue Jul 05, 2016 8:37 pm
Forum: Investing - Theory, News & General
Topic: "Age in bonds" or "110 minus age = equities"?
Replies: 28
Views: 2984

Re: "Age in bonds" or "110 minus age = equities"?

These people don't know you or your financial situation or risk tolerance etc. They make general statements that apply to many people but not for everyone. You need to decide how much risk you want to take or need to take not Bogle or anyone else. There isn't a whole lot of difference between the tw...
by Dandy
Tue Jul 05, 2016 8:04 pm
Forum: Investing - Help with Personal Investments
Topic: Vanguard balanced index fund
Replies: 11
Views: 1089

Re: Vanguard balanced index fund

It is not a fund of funds i.e. it follows the index by investing directly in the stocks and bonds rather than buying 60% of The total stock market fund and 40% of the Total bond market fund.
by Dandy
Tue Jul 05, 2016 8:01 pm
Forum: Investing - Help with Personal Investments
Topic: Refinancing Home to buy Stocks. Confusion
Replies: 62
Views: 4017

Re: Refinancing Home to buy Stocks. Confusion

Leveraging your home to buy the market while it is near historic highs sounds like a really, really bad idea. You could lose a lot of money and your house. This is the type of things people do after a long bull market. They know but ignore the risk probably because they feel they are missing out on ...
by Dandy
Tue Jul 05, 2016 3:34 pm
Forum: Investing - Theory, News & General
Topic: Fixed 60/40 AA in retirement
Replies: 105
Views: 9009

Re: Fixed 60/40 AA in retirement

There are surely many ways to conceptualize this (buckets, safe vs risky money, years of living expenses in cash, etc) but in the end they're just different ways of describing fixed income vs equities. Not quite in my opinion. It is the nature of the fixed income that might be important. I'll agree...
by Dandy
Tue Jul 05, 2016 12:06 pm
Forum: Investing - Theory, News & General
Topic: Fixed 60/40 AA in retirement
Replies: 105
Views: 9009

Re: Fixed 60/40 AA in retirement

JBQ seems to advocate a bucket strategy. 2 years cash, an income portfolio of very safe (intermediate treasuries) bonds and a growth portfolio of stocks. I think I recall her suggesting 50-50 AA for simplicity sake. No one can guarantee a SWR of 4% but from my perspective, it's been vetted as a pre...
by Dandy
Tue Jul 05, 2016 10:29 am
Forum: Investing - Theory, News & General
Topic: Fixed 60/40 AA in retirement
Replies: 105
Views: 9009

Re: Fixed 60/40 AA in retirement

In her recent book "How to Make Your Money Last", Jane Bryant Quinn notes (on pg 214) that an AA of between 40-70% stocks has sustained a 4-4.5% withdrawal rate over a 30yr time period. Jane is one of the good "guys". I like her. But all these type of predictions are based on pr...
by Dandy
Tue Jul 05, 2016 8:11 am
Forum: Investing - Theory, News & General
Topic: Fixed 60/40 AA in retirement
Replies: 105
Views: 9009

Re: Fixed 60/40 AA in retirement

I think retirees should look at their portfolio and decide on their allocation as much as possible from the bottom up. e.g. what is the dollar amount you expect to draw from retirement annually? How many years worth of these dollars do you want to invest relatively safely? Dr. Bernstein would like y...
by Dandy
Tue Jul 05, 2016 7:45 am
Forum: Personal Finance (Not Investing)
Topic: TIAA-CREF 401k Plan Servicing Fees?
Replies: 17
Views: 985

Re: TIAA-CREF 401k Plan Servicing Fees?

I recently looked at my daughter's horrible 403b plan she just became eligible for. In addition to high ERs, there was a 20 bp charge that went to the institution that sponsored the plan to compensate them for administrative expenses . I don't know if that was the school, county or state. In additio...
by Dandy
Mon Jul 04, 2016 10:19 pm
Forum: Personal Finance (Not Investing)
Topic: TDBank promo just started easy $600
Replies: 64
Views: 7146

Re: TDBank promo just started easy $600

$ 25 MONTHLY "account maintenance fee" if your balance drops below $2,500? Holy cow, that's the most draconian such fee I've ever heard of. How can it cost them $25 a month to "maintain" an account? And you were worried about the ethics of taking their money without really consid...
by Dandy
Mon Jul 04, 2016 10:01 pm
Forum: Personal Finance (Not Investing)
Topic: Zero bonds at 38 yo... and no plans to buy any
Replies: 68
Views: 4974

Re: Zero bonds at 38 yo... and no plans to buy any

You are in pretty good shape so pushing equities to a very high level even if you aren't in your early 20's makes some sense. You do have awhile to reach normal retirement age and a lot can happen. For example you life and work for the same city and maybe have the rental property there too. Somethin...
by Dandy
Mon Jul 04, 2016 9:20 pm
Forum: Investing - Theory, News & General
Topic: Tilting Toward a Country that Isn't the US?
Replies: 18
Views: 1733

Re: Tilting Toward a Country that Isn't the US?

Sorry I think I misunderstood the OP's question. I don't see any country that cries out for a tilt. Canada seems like a stable country with a peaceful neighbor :happy but is very resource dependent as is Australia.
by Dandy
Mon Jul 04, 2016 7:32 am
Forum: Investing - Help with Personal Investments
Topic: Confused About Asset Allocation - Help Determining My %ages
Replies: 34
Views: 2052

Re: Confused About Asset Allocation - Help Determining My %ages

I understand the theory and importance of allocating between bonds and stocks, but landing on a precise number is still eluding me. There are a lot of iffy parts to getting the "proper" allocation. Most people don't know their true risk tolerance until they lose hundreds of thousands of d...

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