Search found 4394 matches

by Dandy
Sat Jan 21, 2017 7:17 am
Forum: Investing - Theory, News & General
Topic: Does it matter which index Bond fund you invest in?
Replies: 15
Views: 1193

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

the higher your allocation to fixed income the more the choice of fixed income products matter. But, they don't usually approach the risk/rewards of equity choices.
by Dandy
Sat Jan 21, 2017 6:45 am
Forum: Investing - Help with Personal Investments
Topic: Vanguard TR or balanced index fund???
Replies: 22
Views: 923

Re: Vanguard TR or balanced index fund???

My main concern with TR funds is that VG has and can continue to change the allocation and funds included. So, you never are sure what you are buying. Recently, they added international bonds and upped the allocation to international equities and substituted short term TIPS fund for the longer durat...
by Dandy
Fri Jan 20, 2017 7:59 am
Forum: Investing - Help with Personal Investments
Topic: How to factor pension into asset allocation?
Replies: 17
Views: 1055

Re: How to factor pension into asset allocation?

Having a federal pension is almost a bird in hand and puts you in a much better position to take more risk with your portfolio than if you didn't have it. But it is just an income stream not an investable asset. It will reduce the withdrawal rate on your investments which is a good thing. So, take a...
by Dandy
Thu Jan 19, 2017 11:38 am
Forum: Investing - Theory, News & General
Topic: Deciding on types of bonds is harder than stocks!
Replies: 20
Views: 1922

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

I agree that the fixed income side isn't as simple as I once thought and is a bit more important that "just put it all in the Total Bond fund" (which is a pretty good fund). People think bonds/bond funds instead of fixed income. If your allocation to fixed income is mostly for safety not i...
by Dandy
Thu Jan 19, 2017 10:53 am
Forum: Investing - Help with Personal Investments
Topic: Lost in Swamp in central Fl
Replies: 27
Views: 3071

Re: Lost in Swamp in central Fl

The problem with brokerage firms and brokers isn't that they are all evil -- it is that they charge too much and some are not trustworthy. It is hard to tell who and how much to trust. In order to get some meaningful advice from this forum we need to know the extra income you need from the lump sum ...
by Dandy
Thu Jan 19, 2017 10:35 am
Forum: Investing - Help with Personal Investments
Topic: Value averaging
Replies: 7
Views: 601

Re: Value averaging

However, the biggest advantage of DCA is behavioral. I can automate it and tune out of the market when things go south. With VA, I'm constantly making a decision how much to invest. The more I have to make a decision, the more chances I have to screw it up. True. That is why I recommend some lump s...
by Dandy
Thu Jan 19, 2017 9:46 am
Forum: Investing - Help with Personal Investments
Topic: Short and Intermediate Term Bond Funds
Replies: 14
Views: 1797

Re: Short and Intermediate Term Bond Funds

Retired with a goal of asset preservation and have a bit more than my "number". Age, goal and asset levels can make a difference. A la Dr. Bernstein's idea I keep enough "safe" assets to fund current residual expenses for 21 years -- actually to age 90. Current "fixed Income...
by Dandy
Mon Jan 16, 2017 1:24 pm
Forum: Personal Finance (Not Investing)
Topic: Why nobody understands importance of high-deductible insurance?
Replies: 115
Views: 10049

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

For property and casualty it makes sense if people can truly afford the deductible. For most you just want to insure the large but hopefully rare expense that would be difficult to pay yourself. For health insurance it is more of a mixed bag. Sometimes people with high deductible health insurance av...
by Dandy
Mon Jan 16, 2017 1:13 pm
Forum: Investing - Theory, News & General
Topic: What is the Bogleheads position on Long-term successful daytraders?
Replies: 104
Views: 8398

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

Both of them are truly exceptional! :happy I think it is extremely hard to day trade successfully over the long term unless you have inside information. I would take trader's success with a large grain of salt. It reminds me of people to go the track often and claim they are ahead. They usually aren...
by Dandy
Mon Jan 16, 2017 12:57 pm
Forum: Investing - Theory, News & General
Topic: Why not put it all in TIPS?
Replies: 87
Views: 4923

Re: Why not put it all in TIPS?

I would never consider 100%, even with a modest slug of cash, in one investment. I would consider putting 20-25 years of your current residual needs (money needed each year to supplement other income) in TIPS/and/or other "safe" products. Your actual expense growth/inflation may not align ...
by Dandy
Mon Jan 16, 2017 7:46 am
Forum: Investing - Help with Personal Investments
Topic: Emergency Fund in Series I Savings Bonds
Replies: 9
Views: 907

Re: Emergency Fund in Series I Savings Bonds

I like the split between I bonds and an online savings account. When/if an emergency occurs you can decide which to tap. Since I bonds have a yearly limit on purchases you may not want to cash them in for smaller emergencies that your savings account could handle. Keep in mind that an emergency like...
by Dandy
Sun Jan 15, 2017 10:21 pm
Forum: Investing - Help with Personal Investments
Topic: Value of House in Planning for Retirement
Replies: 46
Views: 3043

Re: Value of House in Planning for Retirement

Having equity in a house is certainly better off than not having it. Lots of ifs -- pay of HELOC, pay down 1st mortgage to 50k, a modest 3% house appreciation, being able to sell when you want... Even with all the ifs you probably can take more risk on the equity side if you want. I wouldn't. I'd st...
by Dandy
Sun Jan 15, 2017 9:28 am
Forum: Investing - Help with Personal Investments
Topic: Dollar-Cost-Average over HOW MANY years?
Replies: 58
Views: 3419

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

No doubt that since stocks rise over time the lump sum will probably turn out better than DCA. Seems like it is about 70/30 in favor of lump sum. What are the stats if one only did DCA when, say the S&P was at or within 2% of its historic high (or some better measure of high valuation). You woul...
by Dandy
Sun Jan 15, 2017 8:01 am
Forum: Investing - Theory, News & General
Topic: Bogle says 50-50 short/intermediate bonds
Replies: 45
Views: 5479

Re: Bogle says 50-50 short/intermediate bonds

little bit of personal market timing While the words "little bit" and "personal" and even "tactical" tend to soften it -- it is market timing and not staying the course. I'm not criticizing it -- just saying people can and probably should, on occasion, make changes to ...
by Dandy
Sat Jan 14, 2017 1:54 pm
Forum: Investing - Theory, News & General
Topic: Bogle says 50-50 short/intermediate bonds
Replies: 45
Views: 5479

Re: Bogle says 50-50 short/intermediate bonds

Another market timing move by Jack - oh I mean tactical allocation move since when Jack does it there aren't a lot of warnings that he should stay the course. :happy Tactical allocation occasionally makes some sense, especially on the fixed income side. e.g. last year a 10 year CD was 100 basis poin...
by Dandy
Sat Jan 14, 2017 1:31 pm
Forum: Investing - Help with Personal Investments
Topic: Dollar-Cost-Average over HOW MANY years?
Replies: 58
Views: 3419

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

Unless it is a small amount I rarely recommend 100% lump or 100% DCA. When the market is high by some objective measure then I would recommend say 20% lump and automate the DCA monthly over the next 9 months to a year. When the Market drops in a month double up on the DCA that month. You should be f...
by Dandy
Sat Jan 14, 2017 6:51 am
Forum: Investing - Theory, News & General
Topic: 100% equities in Roth part of portfolio?
Replies: 19
Views: 2117

Re: 100% equities in Roth part of portfolio?

To me Roth space is special. I would tend to have a bit higher equity allocation in my Roth but not all equities. I'm retired and my RMDs will keep me in a high tax bracket. It will be nice to have a large Roth to tap or to leave to heirs an not worry about taxes. So, I'd rather not risk a large dro...
by Dandy
Thu Jan 12, 2017 5:06 pm
Forum: Investing - Help with Personal Investments
Topic: How to allocate 3-6 million in assets to achieve goals?
Replies: 56
Views: 5819

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

Allocating assets for investment purposes, or "low-risk holding", and withdrawing the assets for retirement are different subjects. I guess you can look at it that way especially in the accumulation stage. When you retire, or even shortly before, it is wise to reassess your allocation to ...
by Dandy
Thu Jan 12, 2017 3:30 pm
Forum: Investing - Help with Personal Investments
Topic: How to allocate 3-6 million in assets to achieve goals?
Replies: 56
Views: 5819

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

What you mention sounds like the "bucket analogy" where 1 bucket fullfills the "base income" (floor?) and so forth. Like compartmentalization of funds and purpose? Is that correct? No not really that is why I used the term portfolio. In the usual bucket strategy there are severa...
by Dandy
Wed Jan 11, 2017 6:02 pm
Forum: Investing - Help with Personal Investments
Topic: How to allocate 3-6 million in assets to achieve goals?
Replies: 56
Views: 5819

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

With 3-6 million you could do almost anything except gamble it away and you should be fine. I like Dr. Wm Bernstein's approach which is if you have won the "game" (and you have) stop playing. He suggests you take your income needs to supplement any pension/social security/annuity etc. 20 -...
by Dandy
Wed Jan 11, 2017 7:37 am
Forum: Investing - Theory, News & General
Topic: A few very basic investing theory questions that have bugged me lately
Replies: 49
Views: 4361

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

I will address the index fund being somewhat like an active fund. I think it also goes to intent. An active manager not only is much more active but is trying to pick winners and sell losers, he/she is trying to outsmart the market. People adjusting the make up of an index are trying to pick stocks ...
by Dandy
Tue Jan 10, 2017 5:13 pm
Forum: Investing - Theory, News & General
Topic: How Bad was 2008, really?
Replies: 189
Views: 12109

Re: How Bad was 2008, really?

What doesn't kill you makes you stronger. Sometimes I guess or it could just cripple you for life. :happy Had the recession lasted a few years longer and the recovery been much milder and stretched out a bit the pain would have been felt by more and more intensely especially those in retirement. I'...
by Dandy
Tue Jan 10, 2017 10:58 am
Forum: Investing - Help with Personal Investments
Topic: Prioritize college savings or retirement savings?
Replies: 6
Views: 607

Re: Prioritize college savings or retirement savings?

Most people here stress retirement funding over college funding, but I think most advisors stress whatever will make them the most money off their clients. I'm pretty down on advisors but not to your extent. There are a lot of decent advisors who unfortunately sell expensive products however you ca...
by Dandy
Tue Jan 10, 2017 10:30 am
Forum: Investing - Theory, News & General
Topic: "Vanguard Retirement Nest Egg Calculator"
Replies: 25
Views: 6587

Re: "Vanguard Retirement Nest Egg Calculator"

It is fun to play with but I also have doubts about projections based on the past equity and bond performance - especially with bond yields so low. I also don't sign on to variable withdrawal plans since I want to have more stability in withdrawals - not trying to maximize them. I like taylor's appr...
by Dandy
Tue Jan 10, 2017 10:10 am
Forum: Investing - Theory, News & General
Topic: How to know your risk tolerance, without ever living through a crash?
Replies: 29
Views: 2274

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

I think many can accept a very high risk when starting out because the assets in question are usually relatively small. For example they may have 20k and feel that a 50% loss is very tolerable. They can easy make up that loss in contributions (and company matches) in a few years. But, they may fail ...
by Dandy
Tue Jan 10, 2017 9:28 am
Forum: Investing - Theory, News & General
Topic: How Bad was 2008, really?
Replies: 189
Views: 12109

Re: How Bad was 2008, really?

What is so scary about a 2 year blip When you are in the crisis you don't know it is going to be a 2 year "blip" followed by an 8 year and ongoing bull market. I was an executive in a mutual fund company - how did a mortgage crisis mean I would lose my job at age 60? There were no jobs av...
by Dandy
Tue Jan 10, 2017 8:58 am
Forum: Investing - Help with Personal Investments
Topic: Prioritize college savings or retirement savings?
Replies: 6
Views: 607

Re: Prioritize college savings or retirement savings?

Most advisors stress retirement funding over college funding. There are ways to fund college but you are the only ones funding retirement. Kids won't be able to help fund your retirement and you don't want them to. Kids can get scholarships, loans, go to less expensive college, etc. If you retire wi...
by Dandy
Tue Jan 10, 2017 8:44 am
Forum: Investing - Help with Personal Investments
Topic: Factoring Pension
Replies: 13
Views: 1427

Re: Factoring Pension

I wouldn't factor it in at all. Nice to have -- if it is there when you actually retire (and after). Most pension plans are not well funded. e.g.There are a lot of teachers and state workers in NJ that are relying on getting a secure pension. I believe NJ has a short fall in funding of tens of billi...
by Dandy
Tue Jan 10, 2017 8:12 am
Forum: Investing - Help with Personal Investments
Topic: To those with a pension...
Replies: 52
Views: 5938

Re: To those with a pension...

I did not change my approach because I was going to get a pension. It allowed me to take more risk but I did not want to and it turned out I did not need to. Lost my job at age 52 after almost 30 years of service so that made what would have been a wonderful pension turn into a nice pension. Lucky g...
by Dandy
Mon Jan 09, 2017 8:03 am
Forum: Investing - Help with Personal Investments
Topic: Where to park $250K (for 3 to 18 months)?
Replies: 14
Views: 1624

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

Ally bank has an 11 month no penalty CD paying 1.25%. If it is still available it seems to be a pretty good choice. If online savings rates go higher than that -- cash it in and put it in their savings account currently paying 1%.
by Dandy
Mon Jan 09, 2017 7:57 am
Forum: Investing - Help with Personal Investments
Topic: Suggestions for 70-year-old retiree's portfolio
Replies: 18
Views: 2109

Re: Suggestions for 70-year-old retiree's portfolio

Have you looked into what portion of her nest egg would be needed to fund all or most of her $1200 a month requirement with an immediate annuity ? If she is in good health with good genes that might be worth looking into. My guess is about $200k will yield about $1000/month. Helps with funding a lon...
by Dandy
Sun Jan 08, 2017 7:07 pm
Forum: Personal Finance (Not Investing)
Topic: Work in NY live in NJ
Replies: 10
Views: 929

Re: Work in NY live in NJ

not a cheap or short/fun commute from most locations.
by Dandy
Sun Jan 08, 2017 9:46 am
Forum: Investing - Help with Personal Investments
Topic: Better to teach kids about investing with ETFs or individual stocks?
Replies: 19
Views: 907

Re: Better to teach kids about investing with ETFs or individual stocks?

I found it better to teach kids about saving and spending wisely, about the advantages of delayed gratification, the power of compounding and the temptations of easy credit and downside of most debt. There was a "lesson" (maybe from Money Magazine) that if a person invested $2k an year fro...
by Dandy
Sat Jan 07, 2017 9:49 pm
Forum: Investing - Theory, News & General
Topic: Vanguard takes in 305B for 2016
Replies: 2
Views: 522

Re: Vanguard takes in 305B for 2016

That is quite an achievement hope the service can keep up.
by Dandy
Sat Jan 07, 2017 9:45 pm
Forum: Investing - Theory, News & General
Topic: Thoughts on a Bogle quote
Replies: 29
Views: 2348

Re: Thoughts on a Bogle quote

I'm well into retirement and have a modest allocation to international equities. They are a bit higher risk and reward and my portfolio is on the conservative side. I don't feel it is necessary to get anywhere near an equal weight with US equities - though that seems to be the latest thing.
by Dandy
Sat Jan 07, 2017 11:54 am
Forum: Personal Finance (Not Investing)
Topic: Annual Vacation Budget
Replies: 249
Views: 15223

Re: Annual Vacation Budget

My children are grown up now so I don't recall how much. But, I can say we always had a great vacation and it built strong bonds - they still talk about them and still vacation with us most years for at least a short time. (their choice but very welcome). You can do a lot to curb vacation expenses. ...
by Dandy
Sat Jan 07, 2017 11:45 am
Forum: Personal Finance (Not Investing)
Topic: Do we need life insurance?
Replies: 18
Views: 1139

Re: Do we need life insurance?

What will happen if you die? Can spouse support herself and two young children? How about if she dies? In general I believe in life insurance when children are so young. You didn't mention the face amount or the size of your portfolio but often if you feel the amount of insurance is too high you can...
by Dandy
Sat Jan 07, 2017 11:39 am
Forum: Personal Finance (Not Investing)
Topic: Retirees: How much cash do you keep?
Replies: 103
Views: 8656

Re: Retirees: How much cash do you keep?

There seems to be some confusion about "cash" i.e. liquidity vs safety. Bank CDs are "safe" and relatively liquid with a small penalty. Many would count bank CDs as cash. Stable Value funds are considered cash but since they are in tax advantaged accounts they are liquid for reba...
by Dandy
Sat Jan 07, 2017 10:49 am
Forum: Personal Finance (Not Investing)
Topic: How many $ to self fund long term care?
Replies: 73
Views: 4953

Re: How many $ to self fund long term care?

Ah, I feel you pain. I feel, in total, that I have enough liquid assets to self fund a lengthy Long Term Care experience. I would certainly not be a fun financial experience. I figure about $300k is often the amount most insurance companies will pay out after a waiting period of 6 months or so - esp...
by Dandy
Fri Jan 06, 2017 6:22 pm
Forum: Investing - Help with Personal Investments
Topic: Strategies for cash distribution in retirement
Replies: 14
Views: 950

Re: Strategies for cash distribution in retirement

I retired in 2008 and wanted to wait to collect SS at age 70 (now have about 13 months to go). I used cash and taxable distributions to fund the gap between retirement income from pensions and wife's small SS and what I needed. I set up some CDs and put about 1 year's worth of cash in an online savi...
by Dandy
Wed Jan 04, 2017 6:35 pm
Forum: Investing - Help with Personal Investments
Topic: Don't Shoot. Questioning 401k
Replies: 28
Views: 2963

Re: Don't Shoot. Questioning 401k

It is not only not paying the tax on the 15K during the year it is contributed. You are not paying any tax on that 15K earnings each and every year until the last dollar is withdrawn from your 401k via RMDs -- that could be until you die. So, concern about retiree tax brackets is a valid concern but...
by Dandy
Wed Jan 04, 2017 5:33 pm
Forum: Investing - Help with Personal Investments
Topic: Using a money market fund to reduce duration
Replies: 9
Views: 970

Re: Using a money market fund to reduce duration

Yes. but why use a lower yielding money market when an online Savings account would pay a decent amount more. Banks tend to leave Savings accounts alone and they usually pay more since they don't have the expenses of processing checks, stop pays, etc. And with a few clicks and a day or 2 the money c...
by Dandy
Wed Jan 04, 2017 11:42 am
Forum: Personal Finance (Not Investing)
Topic: Suggestions for second credit card
Replies: 11
Views: 934

Re: Suggestions for second credit card

Having a second card makes sense for a different reason. Stolen card, left card at vacation restaurant, card hacked and frozen can leave you without the ability to charge for a few days. usually not a crisis but need to settle a hotel bill or rent or rent a car? So, consider a second card for that r...
by Dandy
Wed Jan 04, 2017 11:18 am
Forum: Investing - Theory, News & General
Topic: Stable Value Funds in Portfolio
Replies: 40
Views: 4024

Re: Stable Value Funds in Portfolio

What is the purpose of you fixed income allocation. For most it is for stability or safety to take the risk on the equity side. Stable Value is pretty safe with an excellent yield in today's market. I don't see the problem -- I would allocate a lot of your fixed income to your Stable Value Fund, esp...
by Dandy
Wed Jan 04, 2017 10:49 am
Forum: Investing - Theory, News & General
Topic: Bernstein on Bonds...wow
Replies: 31
Views: 4495

Re: Bernstein on Bonds...wow

I agree with Nisi. I have a large allocation to fixed income and the idea of trying to manage a large individual bond portfolio to is daunting and would become more so as I age and lose whatever sharpness I currently retain. Forget my wonderful wife and potential heirs coming up that curve. I agree ...
by Dandy
Wed Jan 04, 2017 9:56 am
Forum: Investing - Help with Personal Investments
Topic: Change Asset Allocation
Replies: 5
Views: 621

Re: Change Asset Allocation

A lot depends on your situation e.g. how large your nest egg is, how much income you need from it, etc. There is a trade off between safety and return/interest. You can go all super safe and get very low interest or take some risk and get more income. Depending on your age you might consider a porti...
by Dandy
Wed Jan 04, 2017 1:33 am
Forum: Investing - Theory, News & General
Topic: "How Pensions and Social Security Affect Asset Allocation"
Replies: 10
Views: 1807

Re: "How Pensions and Social Security Affect Asset Allocation"

People with a high income floor from SS and pensions etc. can surely take more risk than if they didn't have them. So, go ahead and take as much risk as you want with your investments . You don't need to turn SS or pensions into a pseudo bond to do that. Why delude yourself that you have a 60/40 por...
by Dandy
Tue Jan 03, 2017 8:53 am
Forum: Investing - Theory, News & General
Topic: 2017 and on - Bond Strategy
Replies: 12
Views: 2094

Re: 2017 and on - Bond Strategy

A lot depends on your age, whether you are in or near retirement and the adequacy of your nest egg. How much risk do you need to take? Is your goal growth or asset preservation? How much do you need yield? I also think people should widen their choices beyond bonds to include other fixed income prod...
by Dandy
Tue Jan 03, 2017 8:17 am
Forum: Investing - Help with Personal Investments
Topic: Emergency Fund In A Money Market Account?
Replies: 13
Views: 1466

Re: Emergency Fund In A Money Market Account?

I would not select any of VG money market accounts for the E fund. Prime money market is getting a decent yield but no match for what you can get elsewhere with better safety. Prime was removed from being the clearing account because of the new rules that affect its liquidity and price. So, in an em...
by Dandy
Mon Jan 02, 2017 9:56 pm
Forum: Investing - Theory, News & General
Topic: "How Pensions and Social Security Affect Asset Allocation"
Replies: 10
Views: 1807

Re: "How Pensions and Social Security Affect Asset Allocation"

Bogleheads:

Boglehead Mike Piper, Editor of the Oblivious Investor, is featuring an article that will be of interest to many of us:

How Pensions and Social Security Affect Asset Allocation

Thank you, Mike!


+1 Mike keeps it simple - income is income not a pseudo bond.

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