Search found 4663 matches

by Dandy
Sun Sep 24, 2017 8:33 am
Forum: Personal Consumer Issues
Topic: Hurricane Harvey has me rethinking my approach to disaster preparations
Replies: 72
Views: 6090

Re: Hurricane Harvey has me rethinking my approach to disaster preparations

Glad to hear that you made it through that horrible event. The steps you took made a lot of sense. We lost power for 4 days during a storm a few years ago and it was a wake up call. We were so lucky that the town next door had some electricity. Cash was king as most places wouldn't or couldn't accep...
by Dandy
Sun Sep 24, 2017 8:12 am
Forum: Personal Consumer Issues
Topic: Lifestyle Creep
Replies: 113
Views: 7680

Re: Lifestyle Creep

When in the accumulation stage with 2 children I was very focused on Lifestyle creep. I would avoid most things that added monthly expenses e.g. premium channels, magazine subscriptions, etc. Also, kept an eagle eye on other optional expenses. I probably erred on not doing things I should have e.g. ...
by Dandy
Sat Sep 23, 2017 3:26 pm
Forum: Investing - Help with Personal Investments
Topic: Asset Allocation for mid 50 age group
Replies: 35
Views: 2203

Re: Asset Allocation for mid 50 age group

I think 60% or less of equities would be prudent in most cases especially with the equity markets at or near historic highs. Yes, that could be considered market timing but those in or approaching retirement have declining or little human capital to make up significant losses. That is a major differ...
by Dandy
Fri Sep 22, 2017 1:43 pm
Forum: Investing - Help with Personal Investments
Topic: Investing for my 20 year old son
Replies: 8
Views: 521

Re: Investing for my 20 year old son

I like the fact that he insists on having an emergency fund - he should do well. I have always been a conservative or moderate risk investor. To a young person who has invested during a very long bull market he may not know his real risk tolerance. At his age he can take a lot of risk and just keep ...
by Dandy
Fri Sep 22, 2017 9:31 am
Forum: Investing - Help with Personal Investments
Topic: Help with conservative alloction strategy
Replies: 14
Views: 1218

Re: Help with conservative alloction strategy

How often have you been checking your estimates in #2? Have you had to make adjustments on the withdrawal amount per year? It seems like everything keeps going up in price every year. 1. How often checking estimates of (dollars needed to fund retirement each year). Well I am retired and will take m...
by Dandy
Thu Sep 21, 2017 8:54 am
Forum: Investing - Theory, News & General
Topic: What inflation rate do you use for your planning?
Replies: 105
Views: 8466

Re: What inflation rate do you use for your planning?

I don't take a guess at the future rate into my investment planning. I know inflation is out there (unless deflation is?) but even the Fed can't seem to figure out what the short/medium term inflation will be. So, I make sure I allocate enough to equities which, over time, usually has beaten inflati...
by Dandy
Tue Sep 19, 2017 4:48 pm
Forum: Investing - Help with Personal Investments
Topic: Take The Lump Sum or The Immediate Annuity?
Replies: 34
Views: 2977

Re: Take The Lump Sum or The Immediate Annuity?

You are currently in a very good financial position. You really don't need the lump or the immediate annuity. I would almost always suggest the annuity assuming personal health and health of the annuity provider is very good. Life has many potential bad surprises and having a more than needed secure...
by Dandy
Tue Sep 19, 2017 9:53 am
Forum: Investing - Help with Personal Investments
Topic: Help with conservative alloction strategy
Replies: 14
Views: 1218

Re: Help with conservative alloction strategy

Not sure if you are still working or not. If you are still working I would do the following: 1. Pick a retirement age e.g. 65 2. Estimate your need in dollars you will have to withdraw from your nest egg e.g. $40k/year 3. Multiply that by 20 (or more) e.g. $800k (20 x $40k) 4. Make sure the total of...
by Dandy
Tue Sep 19, 2017 9:21 am
Forum: Investing - Help with Personal Investments
Topic: If you don't care about optimal performance?
Replies: 17
Views: 974

Re: If you don't care about optimal performance?

Retired almost 70 and feel I have "enough". I care about making my portfolio fund my retirement until I die (or age 90) vs striving for optimal performance. I have enough assets in "safe" products to fund current lifestyle until age 90. The rest, aka my "risk" portfolio is about 65/35. I define "saf...
by Dandy
Sun Sep 17, 2017 7:26 am
Forum: Investing - Theory, News & General
Topic: International Bonds - Update
Replies: 58
Views: 6568

Re: International Bonds - Update

Almost 70, retired and have a 43/57 allocation and feel I have "enough". My fixed income is for stability. I feel there are a nice array of US based fixed income products that provide that stability e.g. Total Bond Fund, Short term bond funds, Inflation Protected fund, Savings accounts, CD ladders, ...
by Dandy
Thu Sep 14, 2017 9:10 am
Forum: Investing - Help with Personal Investments
Topic: Help With Asset Allocation - 7 years to retirement
Replies: 10
Views: 1414

Re: Help With Asset Allocation - 7 years to retirement

1. estimate your equity dollar value at retirement. 2. estimate your yearly dollar withdrawal from your nest egg 3. at your estimated retirement age assume equity dollar amount drops 40% over the next 3 years e.g. if you had a million in equities when you retired you now have $600k starting year 4. ...
by Dandy
Thu Sep 14, 2017 8:45 am
Forum: Investing - Help with Personal Investments
Topic: What is the largest percentage of your total portfolio value that you have exchanged to rebalance?
Replies: 58
Views: 3366

Re: What is the largest percentage of your total portfolio value that you have exchanged to rebalance?

Maybe 1% or 2% a bit higher on a rare occasion. Not a believer in making massive investment moves of equities vs fixed income or in fussing too much with sub accounts. I see my role, in retirement and seeming to have "enough", as keeping my equity allocation between 40 and 43%. But, even in the accu...
by Dandy
Wed Sep 13, 2017 4:35 pm
Forum: Personal Finance (Not Investing)
Topic: Take Pay cut close to retirement for sanity purposes?
Replies: 17
Views: 1693

Re: Take Pay cut close to retirement for sanity purposes?

I didn't take a pay cut but was retired 2 years before I was ready. If you are in decent financial shape I would take the cut for sanity. Just make sure you are not taking a cut and the new job is almost as bad. We only have a limited number of years of health and happiness why waste them if you don...
by Dandy
Wed Sep 13, 2017 4:22 pm
Forum: Investing - Theory, News & General
Topic: "Fear of Finance?" AARP interview with Jack Bogle
Replies: 37
Views: 5215

Re: "Fear of Finance?" AARP interview with Jack Bogle

"When you allocate your assets, you also have to think about how much you get from Social Security." Think about is a whole lot different than making your Social Security a formal part of your fixed income allocation vs a nice to have income stream that reduces what you need to withdraw from your po...
by Dandy
Tue Sep 12, 2017 5:13 pm
Forum: Personal Finance (Not Investing)
Topic: The 10 year car ownership "rule"
Replies: 95
Views: 10245

Re: The 10 year car ownership "rule"

re safety advancements but that really only gets dramatic when you're comparing brand new to 20+ years old. That is so misleading. Even some cars 5 years old have back up cameras which can help you not run over your toddler or their bike. A 3 year old used car can have some significant safety impro...
by Dandy
Tue Sep 12, 2017 3:44 pm
Forum: Personal Finance (Not Investing)
Topic: Large portable generator vs. permanent natural gas generator for home
Replies: 67
Views: 3923

Re: Large portable generator vs. permanent natural gas generator for home

I have neither. But Sandy certainly taught us a lesson that gas generators were really a good solution for a 4 or 5 day loss of electricity. Our gas stations couldn't pump gas so those with generators were in a bind. So, natural gas seems like a more reliable choice if the outage is likely to be lon...
by Dandy
Tue Sep 12, 2017 3:40 pm
Forum: Personal Finance (Not Investing)
Topic: The 10 year car ownership "rule"
Replies: 95
Views: 10245

Re: The 10 year car ownership "rule"

the "rule" is intended to squeeze the most value out of your car - very Bogleheadish. I followed it in a sense -- tried to hold on to the car for 10 years or 100k. But, here is my new thinking, not overly accepted, but I think worth of consideration. The advance in safety features I think changes th...
by Dandy
Tue Sep 12, 2017 12:42 pm
Forum: Investing - Help with Personal Investments
Topic: Investing parents nest egg -- any final thoughts?
Replies: 37
Views: 2539

Re: Investing parents nest egg -- any final thoughts?

I know the 3 fund portfolio has a lot going for it. But do you and your parents want to fuss with rebalancing? I would look into a simple balanced, Life Strategy or Target Date fund. I favor Balanced Index fund but that is "only" 60/40 and has no International equities. The TD and LS funds do alloca...
by Dandy
Mon Sep 11, 2017 7:41 am
Forum: Investing - Help with Personal Investments
Topic: Should I Revise Allocation over 20 Yr Period?
Replies: 9
Views: 801

Re: Should I Revise Allocation over 20 Yr Period?

But my question was....do I maintain this proposed 60/40 AA over the 20 yr planning time frame or do I migrate the AA toward bonds during those 20 yrs? thanks If you continue to have more than enough there is no reason to change your allocation. If the risk or your tolerance for risk becomes an iss...
by Dandy
Sat Sep 09, 2017 7:12 am
Forum: Personal Finance (Not Investing)
Topic: Purchasing Home With Girlfriend; Good or Bad?
Replies: 68
Views: 5407

Re: Purchasing Home With Girlfriend; Good or Bad?

Joint ownership with a business partner, family member or friend can have many issues. Add the complications of love/relationship, break up and it probably increases the complexity/risk a lot. My observation/guess is that the longer the long term relationship goes without an engagement the more like...
by Dandy
Fri Sep 08, 2017 7:23 am
Forum: Investing - Help with Personal Investments
Topic: Should I Revise Allocation over 20 Yr Period?
Replies: 9
Views: 801

Re: Should I Revise Allocation over 20 Yr Period?

Since you can't take your assets with you (unfortunately) and you have more than enough - why not start gifting to your heir now while he/she can enjoy life a bit more while still young and you can enjoy seeing the benefit of your gifts? Charities too. As far as investing I would keep about $300k or...
by Dandy
Fri Sep 08, 2017 7:07 am
Forum: Investing - Help with Personal Investments
Topic: 100k taxable camp site
Replies: 10
Views: 1257

Re: 100k taxable camp site

If balanced funds are considered in a taxable account don't forget Tax Managed Balanced.
by Dandy
Thu Sep 07, 2017 7:30 am
Forum: Investing - Theory, News & General
Topic: Fixed Income: Percentage Of Portfolio Or Specific $ Amount?
Replies: 19
Views: 1931

Re: Fixed Income: Percentage Of Portfolio Or Specific $ Amount?

Percentages have their disadvantages. You always need to look at the dollars involved. e.g. early in the accumulation stage a 30% drop in equities might equate to a dollar loss of $30k. A person close to retirement that 30% drop might equal $300k. Risk, reward, expenses, taxes etc. are all really me...
by Dandy
Tue Sep 05, 2017 5:12 pm
Forum: Investing - Theory, News & General
Topic: Is it wise to direct deposit Social Sec to Vanguard?
Replies: 17
Views: 1953

Re: Is it wise to direct deposit Social Sec to Vanguard?

All pensions and Social Security sent to an online Savings Account. 2X a month money automatically sent to my checking account (mimics a bi monthly salary.) Reasons: 1. Banks are FDIC insured vs Vg money market account 2. Most income arrives at beginning of the month but most bills are mid to late m...
by Dandy
Tue Sep 05, 2017 11:01 am
Forum: Personal Consumer Issues
Topic: How do you reverse a lifetime of frugality and learn to spend some money?
Replies: 59
Views: 6265

Re: How do you reverse a lifetime of frugality and learn to spend some money?

I feel your pain as a recovering excess frugality sufferer. Start small, some nicer clothing?, hiring someone to do a chore you really hate (mowing the lawn, washing the car, etc.), having tastier food/drink more often, etc. Things that payoff in some small way. Make sure you get up to date on all m...
by Dandy
Tue Sep 05, 2017 10:33 am
Forum: Personal Finance (Not Investing)
Topic: How do you track expenses ?
Replies: 58
Views: 3499

Re: How do you track expenses ?

Bing retired my main purpose in tracking expenses is to keep track of my run rate. Obviously, knowing that helps determine my dollar withdrawal needs and if that is creeping up. I use a simple excel spread sheet with about 20 or so categories on the "y" axis e.g. one for each utility, credit card, i...
by Dandy
Tue Sep 05, 2017 9:40 am
Forum: Investing - Theory, News & General
Topic: Safe Withdrawal Rate -> 2% or lower
Replies: 72
Views: 7669

Re: Safe Withdrawal Rate -> 2% or lower

Let's agree that a 2% withdrawal rate for a retiree say of age 60 or higher is pretty much golden, especially with a moderate allocation of a diversified portfolio. The "risk" if any, probably comes from a combination of a severe drop in equities and a sharp rise in expenses e.g. large, ongoing medi...
by Dandy
Sun Sep 03, 2017 3:17 pm
Forum: Investing - Theory, News & General
Topic: How much weight do you put on back-testing?
Replies: 53
Views: 3284

Re: How much weight do you put on back-testing?

Some but less and less. Too many changes, major changes and happening quicker than ever. For investing the time periods where there is relevant data is actually pretty limited e.g. less than 100 years?
by Dandy
Sat Sep 02, 2017 11:32 pm
Forum: Investing - Theory, News & General
Topic: Do you reinvest your dividends/capital gains?
Replies: 76
Views: 9002

Re: Do you reinvest your dividends/capital gains?

I am retired and will take my 1st RMD next year. TIRA - reinvest all dividends - my brokerage CDs have no option to reinvest -- what to do with those dividends will be different each year. Taxable - all dividends to cash. Since my TIRA is fixed income heavy and my taxable is equity heavy the combina...
by Dandy
Sat Sep 02, 2017 11:31 pm
Forum: Investing - Theory, News & General
Topic: Do you reinvest your dividends/capital gains?
Replies: 76
Views: 9002

Re: Do you reinvest your dividends/capital gains?

I am retired and will take my 1st RMD next year. TIRA - reinvest all dividends - my brokerage CDs have no option to reinvest -- what to do with those dividends will be different each year. Taxable - all dividends to cash. Since my TIRA is fixed income heavy and my taxable is equity heavy the combina...
by Dandy
Fri Sep 01, 2017 6:05 pm
Forum: Personal Finance (Not Investing)
Topic: "Paid-up" whole life policy: keep or cash it in?
Replies: 7
Views: 1076

Re: "Paid-up" whole life policy: keep or cash it in?

The longer the whole life has been in effect the better it usually is for the insured/owner. If it is paid up then no more premiums are due. Each year the dividends are likely to go up a bit. Divide the latest dividend by the current cash value. How does that compare to Savings or short term CDs? If...
by Dandy
Tue Aug 29, 2017 4:39 pm
Forum: Investing - Theory, News & General
Topic: Cant get my head around this..All Bonds in non-taxable OR...
Replies: 23
Views: 3371

Re: Cant get my head around this..All Bonds in non-taxable OR...

I believe you should have some equities and fixed income in both taxable and non taxable. Obviously, in taxable you would want to lean mostly to muni bonds. I am almost 70 and never had to incur taxes to rebalance since I could use my TIRA which is about 25% equities. Having some equities in my TIRA...
by Dandy
Tue Aug 29, 2017 1:06 pm
Forum: Investing - Help with Personal Investments
Topic: What to do with series EE savings bonds?
Replies: 28
Views: 2814

Re: What to do with series EE savings bonds?

Exactly what rates would you check?
The rate of 1.XX% quoted by the OP
by Dandy
Tue Aug 29, 2017 7:59 am
Forum: Investing - Help with Personal Investments
Topic: Sitting on the sidelines...for now
Replies: 32
Views: 3773

Re: Sitting on the sidelines...for now

I don't think there is a very safe product that keeps up with inflation without some risk. Equities have risks of 50% or more vs having money in a 5 yr CD which might keep up with current inflation but not inflation that is moderately higher. Still that is better than the equity risk. Short term bon...
by Dandy
Mon Aug 28, 2017 3:42 pm
Forum: Investing - Help with Personal Investments
Topic: Sitting on the sidelines...for now
Replies: 32
Views: 3773

Re: Sitting on the sidelines...for now

the few years before and after normal retirement age seem to be the riskiest. A lot depends on your retirement expenses, income and the size of your nest egg. It probably isn't wise for most to be totally on the sidelines. If once you collect social security your drawdown to fund the rest of your mo...
by Dandy
Mon Aug 28, 2017 3:26 pm
Forum: Investing - Help with Personal Investments
Topic: What to do with series EE savings bonds?
Replies: 28
Views: 2814

Re: What to do with series EE savings bonds?

I would check those rates. I have EE bonds maturing from now until 2022 and I believe they are all paying 4%.
by Dandy
Sat Aug 26, 2017 7:29 am
Forum: Investing - Theory, News & General
Topic: Tilt away from one's home country slightly
Replies: 18
Views: 1843

Re: Tilt away from one's home country slightly

I really don't think it is as applicable especially depending on the relative size of your home country's share of the global economy. If your home country has 50% of the global economy and its economy is well diversified there is probably less of a need to tilt away from it than if your home countr...
by Dandy
Sat Aug 26, 2017 7:05 am
Forum: Investing - Theory, News & General
Topic: Effect of duration rate on bond funds
Replies: 21
Views: 2024

Re: Effect of duration rate on bond funds

There are useful math estimates of the impact on bonds and bond funds when interest rates change. There is also an emotional factor that might come into play. Bonds and bond funds are often trickier than people realize. There are many bond fund investors that may misjudge how "safe" their bond fund ...
by Dandy
Wed Aug 23, 2017 5:56 pm
Forum: Investing - Help with Personal Investments
Topic: What do you do with RMD money you don't need?
Replies: 51
Views: 4144

Re: What do you do with RMD money you don't need?

I have reached the conclusion that since I can't take it with me (sad) then gifting to children and more to charity is the plan. My kids like most are unlikely to see a pension, both husband and wife working, getting few raises, trying to raise and educate their children and paying a lot for child c...
by Dandy
Sun Aug 20, 2017 8:06 am
Forum: Investing - Help with Personal Investments
Topic: Adjusting AA as retirement nears
Replies: 64
Views: 6693

Re: Adjusting AA as retirement nears

There are factors to consider e.g. 1. how fast does your post retirement earning potential fade to minimum wage 2 retirement health coverage until you can collect Medicare, 3. funding until you can collect Social Security and any pension 4. If you have your "number" how much of a margin above your n...
by Dandy
Sun Aug 13, 2017 7:33 am
Forum: Investing - Theory, News & General
Topic: Securities in an Insecure World...Graham
Replies: 12
Views: 1386

Re: Securities in an Insecure World...Graham

There is a quest for simplicity that is understandable but sometimes overdone. In the risky and often scary world of equity investing we look to some allocation, formula or guiding words to put us at ease and make the path of managing our investments easier. Some investing commandments to keep us aw...
by Dandy
Sun Aug 13, 2017 6:17 am
Forum: Investing - Help with Personal Investments
Topic: Testing Our Allocations Emotionally
Replies: 26
Views: 1810

Re: Testing Our Allocations Emotionally

During the accumulation stage market plunges were scary but I kept on investing. Whole different story in 2008 when I was forced to retire at age 60, no jobs were available and the nest egg was supposed to last for up to 30 years. Then I moved 401k money from old employer to VG money market and wait...
by Dandy
Sat Aug 12, 2017 6:27 am
Forum: Investing - Help with Personal Investments
Topic: Bernstein's Simpleton's Portfolio
Replies: 40
Views: 4490

Re: Bernstein's Simpleton's Portfolio

My only concern would be that "equal" allocation to the four funds gives you a 75% equity allocation. You equity allocation is probably the most critical decision you have to make with investments as it determines the lion's share of your risk and potential gain. So, if you decide to go with the 4 f...
by Dandy
Sat Aug 12, 2017 6:11 am
Forum: Investing - Help with Personal Investments
Topic: Has anyone converted their interest income to QDI?
Replies: 4
Views: 368

Re: Has anyone converted their interest income to QDI?

The equity risk potential seems to out weigh the tax benefit. An intermediate bond fund may lose 5% if interest rates rise 1%. An equity position might lose many times that? Is the risk of equity principal loss worth the better tax of equity dividends vs bond dividends?
by Dandy
Sat Aug 12, 2017 6:04 am
Forum: Investing - Help with Personal Investments
Topic: AA, IPS. Tinkering trap?
Replies: 11
Views: 956

Re: AA, IPS. Tinkering trap?

Make an IPS and in 2 months you want to revise it upward to match equity gains - sounds like tinkering to me. Sounds like a bit of rebalancing might be in order vs an IPS revision. Run ups in value are still fun when you have 60% allocated to equities. :happy
by Dandy
Fri Aug 11, 2017 8:20 am
Forum: Personal Finance (Not Investing)
Topic: Opinions Needed - Are We Good?
Replies: 32
Views: 2769

Re: Opinions Needed - Are We Good?

Financially you are in very good shape. You need to consider some things 1. If/when you decide (or have to) return to work will you be able to command a decent full or even part time salary. Many skills/contacts decline quickly. 2. figure you have about 45 years to fund i.e. to age 90 so typical wit...
by Dandy
Wed Aug 09, 2017 9:08 am
Forum: Investing - Theory, News & General
Topic: Should TBM Be Your Only Bond Fund?
Replies: 33
Views: 5068

Re: Should TBM Be Your Only Bond Fund?

If you had to pick one fund Total Bond is probably a great choice. Let's face it most of the risk in your portfolio is on the equity side where you can (and probably will in your lifetime) lose up to 50% or so when the markets "corrects/plunges". That is where the focus usually is and for good reaso...
by Dandy
Tue Aug 08, 2017 4:53 pm
Forum: Investing - Theory, News & General
Topic: news yesterday that Buffett has $100,000,000,000 in cash now
Replies: 65
Views: 8789

Re: news yesterday that Buffett has $100,000,000,000 in cash now

I guess he is a successful market timer doing what he does i.e. waits patiently for value instead of always being fully invested. Investors often rant about how cash is a drag on performance but he doesn't seem to care - in the long term he feels not buying at too high a price will work out. Not sur...
by Dandy
Sat Aug 05, 2017 4:38 pm
Forum: Personal Finance (Not Investing)
Topic: Anyone else have trouble spending?
Replies: 91
Views: 5943

Re: Anyone else have trouble spending?

I've always been a saver. Love to see the total investments number grow. Spending has been a challenge after a life of being pretty frugal. Now that I have enough, actually more than enough, I have started to loosen up. A second vacation, season tickets to the theater, a bit more to charity etc. The...
by Dandy
Sat Aug 05, 2017 3:56 pm
Forum: Investing - Help with Personal Investments
Topic: 85/15 too aggressive at age 35?
Replies: 104
Views: 10211

Re: 85/15 too aggressive at age 35?

As you age and approach your "number" there is a gradual shift in the value of extra assets vs the risk of loss of assets. So, the game isn't always to maximize lifetime assets -- sometimes it is to preserve the level of assets that assures a great retirement. Always look to the dollars at risk vs j...