Bogleheads.org

Dandy

When a company issues cash dividends, you get cash, but the stock value declines the same amount percentage wise as the increase in cash dividend. That is true for a stock mutual fund but not necessarily for an individual company. Let's say a company usually pays a certain dollar amount of dividend...

Dandy

That used to be true, but not any more. The 3% the OP is getting on a 7-year CD is better than Baa corporate offerings. Over the last year or so CDs have indeed become a legitimate yield play. To your point a few years ago I invested in a VG brokerage 10 yr CD at 3.3% which was about 100 basis poin...

Dandy

Cd's are a good choice for some of your fixed income allocation. Ally bank is a decent choice but if you go to depositaccounts.com you can find banks or credit unions with better CD yields. I like having all my TIRA in on place i.e. Vanguard so I use their brokerage CDs. But, you have to be careful ...

Dandy

Sounds like you would be good either way. I favor getting the max COLA income at least for the high earner. You spend some assets now while you probably have a decent amount and then you and your spouse will then have less need for portfolio withdrawals, less dependent on the markets, interest rates...

Dandy

Dr. Bill's philosophy for retirees who have "enough" to have 20-25 years of residual expenses in "safe" assets and invest the rest anyway you want was a game changer for me. Not only does it invest to avoid the consequences of being wrong - it is a sleep well investment approach....

Dandy

I'm not sure why your posting about those funds in the Vanguard Managed Payout Fund thread The OP wrote: I am trying to help a friend that doesn't want to be concerned with rebalancing, is unsophisticated in general about investing but needs income for living expenses, While the OP is addressing ma...

Dandy

There seems to be a bit of over worry about the financial issues when you seem to be in much better shape than most. Kids are expensive no doubt. I think that most couples who want a second child usually find a way to make it work even those at the poverty level. So, that probably means you will be ...

Dandy

Balanced Index and Wellesley Income, when used as all in one's, are only appropriate for those intentionally excluding international fund That's right. But, any choice of all in one or only one fund involves compromise. Either you accept investments or allocation levels you don't really desire or y...

Dandy

I don't keep what I consider sensitive info on Yahoo. But, who knows what a clever mind can do with what I have? I changed my password, added an additional mobile number for contact, and deleted my security questions. Not sure what I should do further.

Dandy

Not me. A very odd fund. I would opt for the Balanced Index Fund and/or Wellesley Income fund. The Life Strategy and TD funds are ok but I don't like their allocations and frequent changes - you don't know what you are buying.

Dandy

I think most of the love of the W's is while active they aren't very active and they have had excellent performance over many years. Their expense ratio is a bit higher than most boglehead preferred index funds but not really that expensive. So, excellent, long term performance at a decent price. I ...

Dandy

Can anyone really believe that Jack Bogle, or anyone for that matter, would say to never check statements for errors? Yes and he says it a lot without qualifying that you should check your statement/account for errors. Let's face it if you peek at your statements you know what is happening to your ...

Dandy

You can put your lump sum in an online bank TIRA (maybe convert it to a Roth soon after) and invest in 5yr CDs or longer and also have a Savings account that earns 1%. Or buy Treasury securities in your TIRA. Or you can buy EE bonds with taxable dollars and allocate the same amount in your TIRA to e...

Dandy

If pensions were secure i.e. you were sure to get it I would opt for the pension. Take the $26600 and multiply it by say 5% for 33 years (to age 65) then multiply the answer by 4% (the "safe" withdrawal rate) and divide that by 12 to get the "safe" monthly withdrawal amount. comp...

Dandy

I do like John Bogle's advice about not peeking at our accounts Why? I think it is one of his really, really bad ideas. I don't think he really is serious, though he says it often. I understand that he is trying to get investors away from fretting about market moves and thereby taking hasty, panic ...

Dandy

There have been some discredited bucket theories in the past so sometimes "buckets" is a word that is like hitting a bee hive with a stick. Much of that strategy is using sub accounting or mental accounting. Keeping x years in savings and y years in short term bonds really is just partitio...

Dandy

I think looking for the best price point makes sense when buying a used car e.g. value. In the past buying an older used car and driving it for 10 years or more or hundreds of thousands of miles was a sign of being smart and frugal. I think the advances in safety may tip the balance as to what is a ...

Dandy

It also begs the question of why go to an advisor if you won't follow their advice? Some logic to that. I feel the advisor and client should be able to reach a mutually agreeable allocation. People get second and third opinions on medical issues even though they don't have the same knowledge as the...

Dandy

Wow. I expected the advisors to pitch the Vanguard approach but not to club investors over the head with it. VG seems determined to get people into international investments for their own good whether they like or not or whether it is necessary or not. Kind of off putting especially since their foun...

Dandy

It is all over the place between 0 and maybe 50%. I think 20% of equities in the accumulation stage is ok. I'd reduce international more than US as you glide near or in retirement maybe to 10%. That's just me -- I feel US equities are a bit more stable than international and that fits a more conserv...

Dandy

There are different bucket theories. If it is just have 3 years in cash and the rest "invested" then I would think you would withdraw the cash only when the investments had a bad year. In good years withdrawals would come from the investments. Other bucket theories have cash, intermediate ...

Dandy

Rules of thumb tend to turn into commandments if you are not careful. I like the following "rules" as good starting points : 1. age in bonds (I prefer fixed income to bonds) 2. determine the percentage of your nest egg you can afford to lose - double that for you equity investment allocati...

Dandy

I wouldn't care too much what Bogle or Buffet invests in. Most of his "value" investments are historical "loves" of his from the days he founded Vanguard -- and they have performed well. You will note that Bogle makes frequent "tactical" changes but no one dares call hi...

Dandy

Unusual that a company matches 6% of your contributions most match based on your salary.. So as I read it they match 1% of your salary and then 6% of your contributions.

Dandy

For most, at least in the recent past college and maybe even grad school had become close to a necessity. Soaring costs and a difficult labor market may have changed that a bit. Lots of kids are graduating with a college degree or higher and are having a difficult time getting a good, high paying jo...

Dandy

I try to make sure I have enough in "safe" products to fully fund our retirement until age 90 at least. I don't try to maximize my withdrawals I take what I need. I have increased my standard of living, as was my goal, in retirement e.g. extra vacations, theater, more dinning out, drive be...

Dandy

Very thought provoking. I'm 68 and mortgage free and am toying with selling and renting in a few years. It is very expensive to own and maintain a house -- taxes, repairs, appliance replacements, landscaping, etc. As I age I find it harder to do some of the work myself and outsourcing is expensive. ...

Dandy

Market timing is a broad term covering any investment moves or waits that aren't part of a well thought out plan and is reactive to current events, media hype, fear or confidence. It can cover people who are day traders or people who might buy on a really bad day or wait to buy because they feel the...

Dandy

Active funds usually pitch that they will know enough to soften any market plunge vs index funds that will stay fully invested in the index. So, you hope the active manager know when and how to soften the eventual equity plunge, know when and what to buy when the plunge is over, and cover the ER dif...

Dandy

You can get a bit more than 1% on a on line savings account. With a large amount of money at stake it might be worth it to look. I suggest depositaccounts.com. Look at Savings and bank promotions.

Dandy

Sure it is a lot. What are your expenses going to be? Will you have a pension? Live in a high cost of living area, retire with some mortgage left to pay, no pension, maybe a wait to collect Social Security and Medicare -- could require a lot more than most current retirees. Will safe interest rates ...

Dandy

My 2 fund suggestion would be Balanced Index and any other fund that gets you allocation to what you want. e.g. if 60% equities is too high add a bond fund, if it is too low add a stock fund - maybe international? If 60/40 is about right just you have an all in one fund, just make sure that allocati...

Dandy

You only get one retirement no do overs. Most historical, back tested projections are probably indicating that you could be ok. But, no one knows the future. Will it be like the past -- most likely, but no guarantees. So, why be 100% stocks? Trying to turn 2m into 4m? Can't take it with you. You hei...

Dandy

Suppose that, as you say, foreign buyers like these 2% bonds so much that they push their price from 100 to 105 Thanks for your response. But when the price of the bond goes to 105 on day 1 that will tend to offset the drop in my bond that day from the rate decline- now over time it will mature at ...

Dandy

I assume the theoretical tie between interest change and its affect on a bond or bond funds value ignores some possible effects of the market. e.g. a 1/2% rise in say the 10 year Treasury bond might cause a flood of purchases from foreign countries with low or negative rates. That might bid up the p...

Dandy

A sometimes underappreciated benefit of fixed income that isn't bonds is that many weather these occasional plunges or actual or threats of rising rates better than bonds. Some actually do better with rising rates albeit usually on a bit of a lag. For retirees that have a large allocation to fixed i...

Dandy

What's the old saying that power corrupts? The pressure to constantly improve results is one type of power. The reaction of management to achieve "unrealistic" results, like having each customer have "X"(I believe it was 8) relationships with the bank?. Is also a corrupting power...

Dandy

1. a will 2. health directive - what to do if one is on life support 3. Possibly powers of attorney 4. I like the consolidation for most mentioned. For credit cards having at least 2 in each name seems wise. e.g. I have a credit card with bank A and my wife also has a separate credit card in Bank B ...

Dandy

Balanced Index seems pretty firm on being 60/40 and more importantly you can be pretty sure of what the 60 and 40 are invested in going forward. That is not the same for "active" funds like Wellington, Wellesley, or even Star since the portfolio managers can change (or those of the underly...

Dandy

I would not consider at your age, expenses and portfolio size that it is a good idea to retire. 1. You have about 40 years to fund vs the "normal" of 30 or 35. 2. You are close to a 4% withdrawal and that was probably not intended for 40 years - more like 30. 3. Equity markets are at or ne...

Dandy

Vanguard pushes U.S.-based investors, which are 90% or so of its client base by assets, to avoid home-country bias and give equal attention to foreign markets. Agreed that there is often a home country bias - for almost all investors be they US or foreign citizens. People are more familiar with the...

Dandy

If you have Vanguard brokerage CDs the RMD service will not take RMDs from those assets (check to make sure). I assume you plan taking the first 10 years from your TIRA fixed income and putting the balance less withholding in your taxable account for use as needed. That will likely gradually raise y...

Dandy

Since a COLA very secure pension meets or exceeds your needs you have little need to be conservative. Of course there are potential major expense issues like long term care that need to be considered. But, the key is you indicate you are really investing for your heirs. There are two points that I w...

Dandy

Excessive "looking" or "checking" can be addictive. Taking action because of frequent "looking" or checking can be a disaster. I check my account very frequently but rarely take any action. I check a bit less frequently when the market is down. I'll wait for an up day o...

Dandy

retiring in your late 30''s is a whole different story. You have to have a plan to fund retirement for 50 years vs "normal" about 25 or 30. From a financial standpoint you have to consider if assets go south how easy would it be to earn a decent income say 10 years down the road. For many ...

Dandy

I found some peace of mind early in retirement by using Dr. Bernstein's idea of keeping 20-25 years of fixed income "safe" and investing the rest aggressively (for me). That means 2/3 of my fixed income is in short term bond funds, FDIC products, and some legacy EE bonds (earning 4% :). I ...

Dandy

In general, I would like the new firm to handle the liquidations. Any problems and you are dealing with a firm getting your business instead of losing your business (or giving you the business :happy ). However, cost basis is critical so you need to make sure you have all the cost basis information ...

Dandy

I think you have enough assets to retire comfortably. $170k/5million is less than 4%. I know that doesn't include taxes which could affect the margin of safety. But, 50k SS in 5 years plus a spousal is a decent relief. People I know in that position have handled retirement fine. The transition from ...

Dandy

The case for permanent insurance is weak. The thing is to not delay and buy the term for both of you. The risk, while small, is that one you becomes uninsurable. Both types of insurance provide death insurance but term ends. Just make sure you term policies are long enough and from a high rated insu...

Dandy

I think it is great to have a plan but there are too many variables in the retirement decades to have a set it and forget it plan. I would normally be very happy with my current 42/58 allocation. My TIRA is fixed income heavy so RMDs will gradually and maybe not so gradually push my equity percentag...

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