Search found 4542 matches

by Dandy
Fri May 26, 2017 8:53 am
Forum: Investing - Theory, News & General
Topic: Schwab Intelligent Portfolio vs DIY
Replies: 4
Views: 364

Re: Schwab Intelligent Portfolio vs DIY

I have mixed feelings about the 'cash drag". In reality any allocation not to equities is a "drag". Sure it can depend on what the nature of the cash is -- e.g. a 1% Savings account or a money market paying 10 basis points. But for most the fixed income side of the allocation is for s...
by Dandy
Thu May 25, 2017 12:27 pm
Forum: Investing - Theory, News & General
Topic: Is rebalacing only about risk?
Replies: 66
Views: 4014

Re: Is rebalacing only about risk?

Do people rebalance to keep their portfolio within a risk tolerent asset allocation with which they are comfortable? I have basically morphed into keeping my equity allocation between 40 and 45% rather than wait for those bands to be exceeded. When it gets much over 43% I start to think about makin...
by Dandy
Wed May 24, 2017 9:49 am
Forum: Investing - Help with Personal Investments
Topic: Do you keep extra money available for investing
Replies: 37
Views: 3118

Re: Do you keep extra money available for investing

I have always looked at my allocation as having equities/bonds/cash. There was always a decent liquid assets amount to access for stability, emergencies and opportunities. Expenses are lumpy so it was nice to have some safe/liquid assets to tap when needed. Opportunities sometimes present themselves...
by Dandy
Wed May 24, 2017 9:35 am
Forum: Investing - Help with Personal Investments
Topic: Which accounts to consider in AA
Replies: 8
Views: 626

Re: Which accounts to consider in AA

I'd count everything but the 529 plan assets. I would also not worry about making a move you want because it affects your sub allocation by 2%. Allocations are the result of an educated guess based on your risk tolerance which is another educated guess. A couple of percent one way or the other isn't...
by Dandy
Thu May 18, 2017 10:08 am
Forum: Investing - Help with Personal Investments
Topic: RMD start
Replies: 7
Views: 821

Re: RMD start

I favor proportionately which kind of keeps your allocation stable. By the way I don't think something like brokerage CDs and maybe individual stocks/bonds are included in the amounts deducted i.e. VG will take all the RMD out of mutual funds vs trying to sell Brokerage CDs. I would lean to quarterl...
by Dandy
Wed May 17, 2017 4:17 pm
Forum: Investing - Help with Personal Investments
Topic: Portfolio Construction for Couple about to retire
Replies: 17
Views: 1863

Re: Portfolio Construction for Couple about to retire

Thanks for the reply, Dandy. I'm confused we i'd need to take this approach with them. At their ages, a 50/50 portfolio with a withdrawal rate less than 4% should provide them with enough money to easily meet their requirements for more than the rest of their lives. Isn't this overly conservative? ...
by Dandy
Sun May 14, 2017 6:48 pm
Forum: Personal Finance (Not Investing)
Topic: Was there a $$$ number after which things got easier?
Replies: 72
Views: 9246

Re: Was there a $$$ number after which things got easier?

When your appreciation exceeds your contributions you start to really feel that you money is working for you just as hard as you are working to save.
by Dandy
Sun May 14, 2017 6:32 pm
Forum: Investing - Help with Personal Investments
Topic: strategy when putting cash back into market
Replies: 9
Views: 1010

Re: strategy when putting cash back into market

Lots of discussion on this. studies show about 2/3 of the time 100% lump sum wins. My guess is that if the studies analyzed this decision being made when equities were at or near a market high the results would be a bit less in favor of 100% lump sum. Seems logical. I think when markets are at or ne...
by Dandy
Sun May 14, 2017 6:20 pm
Forum: Investing - Help with Personal Investments
Topic: Portfolio Construction for Couple about to retire
Replies: 17
Views: 1863

Re: Portfolio Construction for Couple about to retire

Seems as if they will eventually need about 45k to supplement their Social Security. Frankly, I like Dr. Bernstein's approach of having 20-25 years of potential drawdown in "safe" products e.g. TIPS, CDS, savings account, short term bonds etc. The rest invest any way you like. So you end u...
by Dandy
Sun May 14, 2017 10:44 am
Forum: Investing - Help with Personal Investments
Topic: Is there any reason I should invest any additional money into bonds?
Replies: 29
Views: 2485

Re: Is there any reason I should invest any additional money into bonds?

When people feel they have more than enough they can have two course of action both of which have some logic. 1. is go aggressive since they have their income floor covered. 2. Go moderate since they have already won the game - so the need to take aggressive risk is unnecessary. I feel I have "...
by Dandy
Sun May 14, 2017 8:39 am
Forum: Personal Finance (Not Investing)
Topic: Has Your Number Changed Over Time?
Replies: 11
Views: 1401

Re: Has Your Number Changed Over Time?

Yes it changed over time. Interest rates have plunged. Once you could get say 7% on Treasuries so having 1 million could get you 70k that plus an anticipated pension would have been a winner. Now Treasuries pay 2+% so maybe 25k and oh by the way the full pension was reduced since I was downsized at ...
by Dandy
Sun May 14, 2017 8:23 am
Forum: Investing - Help with Personal Investments
Topic: Investing Priority
Replies: 11
Views: 1012

Re: Investing Priority

They didn't have Roths or Roth options in my 401k so my 401k which turned into a TIRA was basically it. It was nice having those tax deductions during the accumulation stage. The funds included were not the best as far as expense ratios and performance. I am lucky that I have a pension and have accu...
by Dandy
Sun May 14, 2017 8:03 am
Forum: Personal Finance (Not Investing)
Topic: Regret early retirement/downsizing
Replies: 82
Views: 12008

Re: Regret early retirement/downsizing

Regret usually comes from loving a job an missing it, shaky retirement finances and boredom. Most retirees I have met who have basic finances covered don't miss their job. The one that did was bored until he started organizing events for the tennis club he belonged to. He had been sitting at home wh...
by Dandy
Sun May 14, 2017 7:57 am
Forum: Investing - Help with Personal Investments
Topic: 100% Total International (0% US equity) for new investor?
Replies: 36
Views: 2383

Re: 100% Total International (0% US equity) for new investor?

100% invested in anything is usually a very bad idea. Whether that is CDs or the Total International fund. If every time you think a fund is overvalued or ready to decline you sell all you will likely be disappointed in the long term results. Set an allocation, set some method for rebalancing and co...
by Dandy
Sat May 13, 2017 8:20 am
Forum: Investing - Theory, News & General
Topic: Single most important investing advice?
Replies: 96
Views: 10972

Re: Single most important investing advice?

It is hard to come up with one that is nearly fool proof. The best advice I got was when I started work an "old timer" said every time you get a raise save some of it - you will never miss it if you don't get it. Almost without exception I followed that. I'd increase my allocation to 401k ...
by Dandy
Sat May 13, 2017 8:05 am
Forum: Investing - Help with Personal Investments
Topic: Fund Recommendations
Replies: 1
Views: 251

Re: Fund Recommendations

NJ state has one of the worst financial conditions e.g. billions in underfunded pensions. So, I would suggest not putting all dad's eggs in that basket. Also, unlikely to outpace inflation especially in a likely rising rate environment. I don't think there is an investment that will do all three thi...
by Dandy
Fri May 12, 2017 9:16 am
Forum: Investing - Help with Personal Investments
Topic: Trouble sticking to a plan
Replies: 19
Views: 1925

Re: Trouble sticking to a plan

I think you would be better off with a Target Date, Life Strategy or Balanced funds to stop fussing with your investments. On my TIRA I have put about half (and all the equity allocations) in the Balanced Index and Wellesley Income Funds with the remainder in various fixed income products. I have no...
by Dandy
Thu May 11, 2017 8:00 am
Forum: Investing - Theory, News & General
Topic: Vanguard Brokerage Account
Replies: 9
Views: 1181

Re: Vanguard Brokerage Account

When I had mutual fund accounts (non brokerage) VG would withhold taxes on taxable distributions. That reduced the need for paying estimated taxes. When they switched that account to a brokerage account they stopped - without notice. The brokerage system doesn't allow withholding on taxable distribu...
by Dandy
Wed May 10, 2017 3:47 pm
Forum: Investing - Theory, News & General
Topic: Mental accounting: Tool? Crutch? Or no big deal?
Replies: 16
Views: 906

Re: Mental accounting: Tool? Crutch? Or no big deal?

mental accounting is ok as long as it isn't mental delusion. A lot of people don't count their emergency fund in their allocation -- but I'm sure they realize that in a real emergency all your assets are likely in play not just the 6 months or so that may be labeled for emergency. It makes keeping t...
by Dandy
Wed May 10, 2017 6:41 am
Forum: Personal Finance (Not Investing)
Topic: Long Term [Care] Rates just went Through the roof!
Replies: 34
Views: 4670

Re: Long Term [Care] Rates just went Through the roof!

Yikes - it is really bad when you think you have done the prudent thing and this happens. And they say expect further increases. I'm surprised any company is still selling and people are still buying these policies since insurance companies don't really know how to underwrite them properly and face ...
by Dandy
Sun May 07, 2017 1:52 pm
Forum: Investing - Help with Personal Investments
Topic: Retire Early?? Need a sense check
Replies: 41
Views: 6933

Re: Retire Early?? Need a sense check

looks good but I am always a bit conservative when making projections that long. Some things to consider: 1. Compounding at 5% on the surface seems reasonable - how does 4% turn out. 2. How re employable are you say the next 5-10 years at a good income? Some people leave at that age and can get some...
by Dandy
Sun May 07, 2017 10:26 am
Forum: Personal Finance (Not Investing)
Topic: savings account versus money market fund
Replies: 13
Views: 2095

Re: savings account versus money market fund

Online bank money market deposit accounts usually pay less than their Savings accounts and/or have tiers that pay much less for lower balances. I imagine that is because they have to issue and clear checks which can lead to service cost/issues that don't usually occur with a straight Savings account...
by Dandy
Sat May 06, 2017 10:16 pm
Forum: Investing - Help with Personal Investments
Topic: What to do with 300,000?
Replies: 29
Views: 2810

Re: What to do with 300,000?

I rebalance in part to maintain my allocation and risk level, but also because doing so provides a natural way to buy low and sell high. If that is market timing, then I fully believe in market timing! Prudent, reasonable thing to do. It doesn't need a label you understand you are mitigating some r...
by Dandy
Sat May 06, 2017 7:51 pm
Forum: Investing - Help with Personal Investments
Topic: What to do with 300,000?
Replies: 29
Views: 2810

Re: What to do with 300,000?

I rebalance back to 60/40 not because I think stocks are more dangerous than normal now that they are at a new high but because I have too much money in stocks. How did your portfolio get to have too much money in stocks to go from 60% to 70%? Maybe it was because the market rose a lot and is certa...
by Dandy
Sat May 06, 2017 1:45 pm
Forum: Investing - Help with Personal Investments
Topic: What to do with 300,000?
Replies: 29
Views: 2810

Re: What to do with 300,000?

If it makes sense for you to DCA into a market because it has hit new highs, then it makes sense for me to sell everything and DCA back into the market because it has reached new highs. Why shouldn't I be a bit more cautious? It may mean you shouldn't necessarily wait for a pre programmed rebalance...
by Dandy
Sat May 06, 2017 7:56 am
Forum: Investing - Help with Personal Investments
Topic: What to do with 300,000?
Replies: 29
Views: 2810

Re: What to do with 300,000?

My beef with the label market timing is that it is used to cover really bad behaviors and some actions that are reasonable. People may avoid actions that are reasonable just because of a label. The classic market timers were those "gurus" that sold/preached market timing letters/broadcasts...
by Dandy
Fri May 05, 2017 4:56 pm
Forum: Investing - Help with Personal Investments
Topic: What to do with 300,000?
Replies: 29
Views: 2810

Re: What to do with 300,000?

I agree that DCAing is better than sitting on the sidelines, but it's still a form of market timing . That is a standard response with some merit but I don't like the market timing label being tossed around. Market timing covers a lot of ground and is often over used. e.g. some call rebalancing mar...
by Dandy
Fri May 05, 2017 4:03 pm
Forum: Investing - Theory, News & General
Topic: Why save so much for when you're old?
Replies: 163
Views: 18044

Re: Why save so much for when you're old?

Here are some of my thoughts 1. By saving early (like age 24) you have to be far less frugal than if you start say at 30. 2. You work from age 24 to say 60 - 36 years - you have a decent change to live to age 90 - so 30 years in retirement So your earning years are just slightly longer than your ret...
by Dandy
Fri May 05, 2017 3:35 pm
Forum: Investing - Help with Personal Investments
Topic: CD Asset allocation
Replies: 4
Views: 673

Re: CD Asset allocation

I don't think it matter a whole lot. But I would count it. You are in retirement and your retirement nest egg is there to fund your retirement expenses. So if it was invested in a mutual funds and you were withdrawing enough to live on until you collect Social Security would you not count some of th...
by Dandy
Fri May 05, 2017 3:18 pm
Forum: Investing - Help with Personal Investments
Topic: What to do with 300,000?
Replies: 29
Views: 2810

Re: What to do with 300,000?

Invest some now, dollar cost average the rest over 12 months, if the market drops significantly in any future month double that month's investment. You will be fully invested in a year or less and will be able to buy a bit more when/if the market drops during that period. Best of all it will get you...
by Dandy
Thu May 04, 2017 4:07 pm
Forum: Investing - Help with Personal Investments
Topic: Retirement Allocation
Replies: 15
Views: 1228

Re: Retirement Allocation

not bad. I'd consider just Total Stock and Total International and for fixed income 20% Total Bond, 20% short term Bond and 20% CDs. I like having some allocation to CDs and would consider some as a permanent part of you allocation. Fixed income is mostly for stability and safety and short/intermedi...
by Dandy
Thu May 04, 2017 7:29 am
Forum: Investing - Theory, News & General
Topic: Benefits and methods for Gradual Rebalancing
Replies: 57
Views: 4001

Re: Benefits and methods for Gradual Rebalancing

I think some take rebalancing too seriously. Your allocation is generally based on an educated guess of your risk tolerance. Then you make an educated guess at what equity vs fixed income goal might meet that risk tolerance. (let's ignore the sub allocations - which are further educated guesses at d...
by Dandy
Tue May 02, 2017 7:19 am
Forum: Investing - Theory, News & General
Topic: Buying CDs each month for decades
Replies: 13
Views: 2598

Re: Buying CDs each month for decades

That is a lot of record keeping and reinvestment actions for so many CDs. You are aware that the CD interest on Brokerage CDs cannot be reinvested in that CD like a direct bank CD. Not sure why you would want to have so many monthly maturities. If you are thinking of having, in retirement, a monthly...
by Dandy
Sun Apr 30, 2017 7:38 pm
Forum: Investing - Help with Personal Investments
Topic: does vanguard give a transfer bonus
Replies: 12
Views: 1687

Re: does vanguard give a transfer bonus

Bonuses are given to lure new money/customers into a firm. Vanguard has much more inflows of assets than all its competitors combined. They probably are struggling to handle all this new money. As stated the "bonus" is low fees -- which is why Vanguard is killing the competition.
by Dandy
Fri Apr 28, 2017 9:36 pm
Forum: Investing - Theory, News & General
Topic: Five year CD paying more than 10 yr. treasury
Replies: 30
Views: 4314

Re: Five year CD paying more than 10 yr. treasury

There are thousands of banks/credit unions spread out all over. Some offer a high rate to attract new customers or maybe there is a lot of local loan demand so they can afford to offer a bit higher rate. Treasuries are sold all over the world and are considered a safe place to park money. The demand...
by Dandy
Fri Apr 28, 2017 8:17 am
Forum: Investing - Theory, News & General
Topic: Should we treat investors' tolerance for volatility as fixed?
Replies: 121
Views: 3934

Re: Should we treat investors' tolerance for volatility as fixed?

I found it was much easier to tolerate volatility when in my mid accumulation years. Nice salary, bonus, company match etc. I didn't like a drop in markets but did see them as opportunities to re balance and buy low. After all I wasn't going to use my retirement investments for many years and had li...
by Dandy
Fri Apr 28, 2017 7:40 am
Forum: Investing - Help with Personal Investments
Topic: How to Capitalize Your Pension and SSA for AA Purposes?
Replies: 8
Views: 827

Re: How to Capitalize Your Pension and SSA for AA Purposes?

A lot of smart people think turning income streams into pseudo bonds is a good idea. But they are income streams. As noted they reduce the need to take more out of your investments during retirement. They are great to have and when deciding what allocation/risk is right for you -- you should keep th...
by Dandy
Wed Apr 26, 2017 9:46 pm
Forum: Investing - Help with Personal Investments
Topic: One Fund? Really?
Replies: 49
Views: 5498

Re: One Fund? Really?

100% TSM would be ok.


Not for me or for most people. It is my largest holding though.
by Dandy
Wed Apr 26, 2017 7:17 pm
Forum: Investing - Help with Personal Investments
Topic: One Fund? Really?
Replies: 49
Views: 5498

Re: One Fund? Really?

It depends on the fund. A nicely balanced fund that fits closely with your desired allocation and risk tolerance is fine. You may need to revisit as you age during retirement and your expenses or risk tolerance changes. I find it hard to find a single fund that I would be comfortable with - too many...
by Dandy
Wed Apr 26, 2017 1:07 pm
Forum: Investing - Help with Personal Investments
Topic: Does Portfolio Size Influence Stock/Bond Allocation?
Replies: 43
Views: 4219

Re: Does Portfolio Size Influence Stock/Bond Allocation?

Norway's portfolio is $850 billion and they currently have 60/40 split.


I curious on how that might apply to an individual, especially one approaching retirement?
by Dandy
Wed Apr 26, 2017 10:30 am
Forum: Investing - Help with Personal Investments
Topic: Reached 50% of my "number" today
Replies: 20
Views: 4256

Re: Reached 50% of my "number" today

Great. Now you will probably see the growth of the portfolio will start to dwarf your contributions and get the feeling that your money is really working for you.
by Dandy
Wed Apr 26, 2017 10:18 am
Forum: Investing - Help with Personal Investments
Topic: Does Portfolio Size Influence Stock/Bond Allocation?
Replies: 43
Views: 4219

Re: Does Portfolio Size Influence Stock/Bond Allocation?

Age, distance from retirement and size of the portfolio matter a lot. As you age your ability to earn and invest is shortened i.e. human capital decreases. As you approach your desired retirement age you usually are defining the length of your human capital i.e. if you retire at 55 vs 65 you may hav...
by Dandy
Tue Apr 25, 2017 2:33 pm
Forum: Personal Finance (Not Investing)
Topic: Helping adult children
Replies: 81
Views: 8115

Re: Helping adult children

If one child lives it up big time in their 20's and winds up with a mess of a life should mom and dad reward those choices with financial help because they now have greater needs Tough to deal with a child who has squandered his/her life with bad choices, ignoring sane advice etc. That really seems...
by Dandy
Tue Apr 25, 2017 1:38 pm
Forum: Personal Finance (Not Investing)
Topic: Helping adult children
Replies: 81
Views: 8115

Re: Helping adult children

there is some merit in children doing it on their own and not having everything handed to them. It can provide confidence and appreciation of what it takes to make things work. Been there done that. There is also merit to helping children who are doing all right but could have a bit less stress and ...
by Dandy
Tue Apr 25, 2017 8:42 am
Forum: Personal Finance (Not Investing)
Topic: Helping adult children
Replies: 81
Views: 8115

Re: Helping adult children

Splitting things 50/50 isn't the only definition of fair. It is the best starting point. But, individual needs play a role. Both children seem fine with your current arrangement and the child/grandchildren who need more help is getting it. Sounds good to me. Not all family cultures would welcome thi...
by Dandy
Tue Apr 25, 2017 8:21 am
Forum: Investing - Help with Personal Investments
Topic: Thoughts how/why/when to finally move to Bonds/Fixed Income
Replies: 20
Views: 2789

Re: Thoughts how/why/when to finally move to Bonds/Fixed Income

What is usually a difficult thing to do when you are a successful, aggressive investor is to know when not to be aggressive. Decades of riding the ups and downs of the market and the thrill of investing when markets are down and watching your "gamble" pay off is great. Often overlooked is ...
by Dandy
Sun Apr 23, 2017 8:27 am
Forum: Investing - Help with Personal Investments
Topic: Hardest invest Q of all [when to retire]
Replies: 14
Views: 1747

Re: Hardest invest Q of all [when to retire]

Do some math. When you retire what will your income floor be with any pension and Social Security. What additional dollars will you have to withdraw from your financial assets to maintain your current life style? What percentage of your financial assets is the annual withdrawals? If less than 4% so ...
by Dandy
Sun Apr 23, 2017 5:52 am
Forum: Personal Finance (Not Investing)
Topic: Why never speak badly about boss? [Need Bogleheads' wisdom]
Replies: 138
Views: 12729

Re: Why never speak badly about boss? [Need Bogleheads' wisdom]

We all like to gripe about bad bosses, co workers etc. I have done it. But, if you take a step back what positive purpose does it serve? You get a misery loves company short term benefit which doesn't make anything better going forward. What is the risk - things get worse as word gets back to your b...
by Dandy
Sun Apr 23, 2017 5:23 am
Forum: Personal Finance (Not Investing)
Topic: Ally Bank - Savings Account Rate Increased!
Replies: 70
Views: 8270

Re: Ally Bank - Savings Account Rate Increased!

We are getting so used to low interest rates that a 5 basis point increase gets an ! :happy We have come a long way down and have a long way to go. I'm going to be sad when my old series EE bonds currently earning 4% mature.
by Dandy
Tue Apr 18, 2017 7:13 am
Forum: Investing - Theory, News & General
Topic: "Yield surge: Remember the real role of bonds"
Replies: 14
Views: 1926

Re: "Yield surge: Remember the real role of bonds"

Think fixed income not just bonds. In a rising interest rate environment bonds/bond funds will tend to take a temporary modest hit while other fixed income choices e.g. Savings/direct bank CDs will not (except a possible early withdrawal fee). Online savings might even get rate increases when intere...

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