Search found 97 matches

by David Scubadiver
Sun Feb 19, 2017 10:59 am
Forum: Investing - Help with Personal Investments
Topic: Older parents advice.
Replies: 18
Views: 1243

Re: Older parents advice.

Unfortunately, he was not sure what he is paying. He said it was not a wrap and that he only paid commissions, but I am not convinced he is correct. Especially since he thought the preferred stocks were CDs He did not have any trade confirmations so I was unable to see what they charge. But, if it i...
by David Scubadiver
Sun Feb 19, 2017 9:11 am
Forum: Investing - Help with Personal Investments
Topic: Older parents advice.
Replies: 18
Views: 1243

Re: Older parents advice.

For what it is worth his full service broker has him in preferred stock and 1/3 of the equities are in 2 utility stocks. Even if utilities are conservative that is a lot of concentrated risk.
by David Scubadiver
Sun Feb 19, 2017 7:46 am
Forum: Investing - Help with Personal Investments
Topic: Older parents advice.
Replies: 18
Views: 1243

Re: Older parents advice.

Also, since the Tips have deflation risk and the face value can be decrease, should they only make up a portion of fixed income?
by David Scubadiver
Sun Feb 19, 2017 3:31 am
Forum: Investing - Help with Personal Investments
Topic: Older parents advice.
Replies: 18
Views: 1243

Re: Older parents advice.

I think laddered tips would appeal to him. He uses a full service broker so that will help him in the execution of the ladder as described. Mom is a a few years younger so the time horizon and inflation are certainly an issue. 1 If rates begin to rise, the tips rates will adjust upwards, and since h...
by David Scubadiver
Sat Feb 18, 2017 10:01 pm
Forum: Investing - Help with Personal Investments
Topic: Older parents advice.
Replies: 18
Views: 1243

Re: Older parents advice.

Sorry. Should have said that his Ira is 80% stocks.we were discussing the IRA. I only learned about the CDs later. But he was concerned about losing value in the IRA due to market dropping since he has no need for growth.
by David Scubadiver
Sat Feb 18, 2017 9:51 pm
Forum: Investing - Help with Personal Investments
Topic: Older parents advice.
Replies: 18
Views: 1243

Re: Older parents advice.

I am curious. What value do stocks provide if be is certain he will outlive even 100% cash?
by David Scubadiver
Sat Feb 18, 2017 9:48 pm
Forum: Investing - Help with Personal Investments
Topic: Older parents advice.
Replies: 18
Views: 1243

Re: Older parents advice.

Did he ask for your help or are you doing this on your own initiative? Is he content with his lifestyle, and will his current portfolio enable him to live out his life that way? If so why try to fix what ain't broke? I think sometimes young people fail to appreciate the oldsters views and want to i...
by David Scubadiver
Sat Feb 18, 2017 9:47 pm
Forum: Investing - Help with Personal Investments
Topic: Older parents advice.
Replies: 18
Views: 1243

Re: Older parents advice.

Thanks. What is a good short term treasury ETF for the fixed income. I will suggest SCHB for the 20% equity.

His equites are a mess of 12 stocks, three funds two of which have a load and high expense ratios. And even his fixed income included preferred stock in an IRA.
by David Scubadiver
Sat Feb 18, 2017 7:55 pm
Forum: Investing - Help with Personal Investments
Topic: Older parents advice.
Replies: 18
Views: 1243

Older parents advice.

Took a look at my 80 year old father's brokerage account and saw it is 80/20 in stocks/bonds. He also has $800,000 of CDs outside the IRA that bring his allocation to 27/73 stocks/bonds. [edited for clarity] He says he would be happy with nothing invested and everything in treasuries. He withdraws a...
by David Scubadiver
Fri Feb 17, 2017 4:23 pm
Forum: Investing - Help with Personal Investments
Topic: 529 Asset Allocation - is this valid thinking?
Replies: 37
Views: 1170

Re: 529 Asset Allocation - is this valid thinking?

Well, at ages 6 and 3, it is very difficult to know where I will be in 12-15 years when they are heading off to college. We are all on different paths for sure, and where we start definitely influences where we will wind up. If your question is, would I be willing to fund $300,000 in college expens...
by David Scubadiver
Fri Feb 17, 2017 4:18 pm
Forum: Investing - Help with Personal Investments
Topic: 529 Asset Allocation - is this valid thinking?
Replies: 37
Views: 1170

Re: 529 Asset Allocation - is this valid thinking?

We opened a Utah 529 plan years ago for our daughter, and I use a custom glide for the account: http://i.imgur.com/ncpDTII.jpg We only contribute $1200/year to the account because our intention is to only offset some of the costs of college. The rest can be paid for via student loans. I believe the...
by David Scubadiver
Fri Feb 17, 2017 4:13 pm
Forum: Investing - Theory, News & General
Topic: Bonds Are Riskier Than You Think? Article implications for today?
Replies: 48
Views: 3425

Re: Bonds Are Riskier Than You Think? Article implications for today?

Based on your excerpt, I would say the point is that when deciding on an asset allocation for your investments, if you base it on bond performance in the past 35 years, you may have a very rude awakening if the next bond "super" cycle takes us to a market like we had between 1940 and 1980....
by David Scubadiver
Fri Feb 17, 2017 2:40 pm
Forum: Personal Finance (Not Investing)
Topic: Credit cards vs. Cash
Replies: 111
Views: 5104

Re: Credit cards vs. Cash

You quoted my response to a user who stated, "If you have no self control and don't understand the concept of arithmetic then you shouldn't have a credit card." In that context, a "miser" can be epitomized by Ebeneezer Scrooge, one who is wretched, unhappy and mean toward others...
by David Scubadiver
Fri Feb 17, 2017 2:35 pm
Forum: Personal Finance (Not Investing)
Topic: Credit cards vs. Cash
Replies: 111
Views: 5104

Re: Credit cards vs. Cash

Well, what's a miser? Someone who doesn't waste money and regret it later? You quoted my response to a user who stated, "If you have no self control and don't understand the concept of arithmetic then you shouldn't have a credit card." In that context, a "miser" can be epitomize...
by David Scubadiver
Fri Feb 17, 2017 1:59 pm
Forum: Investing - Help with Personal Investments
Topic: 529 Asset Allocation - is this valid thinking?
Replies: 37
Views: 1170

Re: 529 Asset Allocation - is this valid thinking?

The problem with glide paths for 529 plans is that they are very steep, making the equity performance of the first few years critically important. Meanwhile, the SP and valuations are at an all time high... I think the better play is thinking of the 529 as part of your total portfolio, which in rea...
by David Scubadiver
Fri Feb 17, 2017 1:55 pm
Forum: Investing - Help with Personal Investments
Topic: 529 Asset Allocation - is this valid thinking?
Replies: 37
Views: 1170

Re: 529 Asset Allocation - is this valid thinking?

Oh, I did not mean to suggest that I am planning to pay $400,000 for some private school. Just thinking about it. As the children are not yet in first grade, I have a lot of time to adjust my thinking. But, even a public out of state school is "projecting" at 273,000 for my oldest, or $15...
by David Scubadiver
Fri Feb 17, 2017 11:53 am
Forum: Investing - Help with Personal Investments
Topic: 529 Asset Allocation - is this valid thinking?
Replies: 37
Views: 1170

Re: 529 Asset Allocation - is this valid thinking?

I see your point. I am thinking about paying $400,000 for some private school 12 years from now, so the tax bite would be larger. David Scubadiver, 1) Good for you. You probably have 2 million or more in your retirement. 2) I would never pay that amount for an undergraduate degree. It simply does n...
by David Scubadiver
Fri Feb 17, 2017 11:24 am
Forum: Investing - Help with Personal Investments
Topic: 529 Asset Allocation - is this valid thinking?
Replies: 37
Views: 1170

Re: 529 Asset Allocation - is this valid thinking?

I see your point. I am thinking about paying $400,000 for some private school 12 years from now, so the tax bite would be larger.
by David Scubadiver
Fri Feb 17, 2017 11:08 am
Forum: Investing - Help with Personal Investments
Topic: 529 Asset Allocation - is this valid thinking?
Replies: 37
Views: 1170

Re: 529 Asset Allocation - is this valid thinking?

I understand one should not prioritize funding a 529 account before first maxing out their retirement accounts. My wife and I are *not yet* maxing both our IRA's but relatives gifted us a total of $650 for our (currently) 3 month old baby's future over the holidays. Today I opened a 529 account and...
by David Scubadiver
Fri Feb 17, 2017 10:55 am
Forum: Investing - Help with Personal Investments
Topic: 529 Asset Allocation - is this valid thinking?
Replies: 37
Views: 1170

Re: 529 Asset Allocation - is this valid thinking?

I may have this completely wrong and ill-thought out, so take it for what is worth. Going 100% in stocks "for 0-3 years" sounds flat out wrong to me, because it is essentially a short term time horizon that may result in a substantial loss at the outset of your investment planning. By way ...
by David Scubadiver
Fri Feb 17, 2017 9:06 am
Forum: Investing - Help with Personal Investments
Topic: Help for a newbie
Replies: 6
Views: 387

Re: Help for a newbie

A Target Date fund is definitely a safe option, especially for your IRA. However, the more you can tell us about your situation, the better advice you will get. You might not want a Target Date fund in your taxable account as you get closer to retirement. What is your tax bracket? What is the curre...
by David Scubadiver
Fri Feb 17, 2017 5:33 am
Forum: Investing - Help with Personal Investments
Topic: Help for a newbie
Replies: 6
Views: 387

Re: Help for a newbie

The funds you have now are fine too. But the only fund you actually need is a low fee S&P500 fund for your stocks. Why is an S&P 500 index fund (500 largest US companies by market capitalization [market cap = stock price x shares the company has on the market]) needed if she has SCHX (US la...
by David Scubadiver
Thu Feb 16, 2017 2:06 pm
Forum: Personal Finance (Not Investing)
Topic: Credit cards vs. Cash
Replies: 111
Views: 5104

Re: Credit cards vs. Cash

If you are poor and miserly or rich and miserly, you are a miser nonetheless. Well, what's a miser? Someone who doesn't waste money and regret it later? You quoted my response to a user who stated, "If you have no self control and don't understand the concept of arithmetic then you shouldn't h...
by David Scubadiver
Thu Feb 16, 2017 1:01 pm
Forum: Investing - Theory, News & General
Topic: How to increase risk and return incrementally in a portfolio?
Replies: 31
Views: 1515

Re: How to increase risk and return incrementally in a portfolio?

You invest in a total stock market fund and a bond fund and select the proportion of each to roughly target the available risk and return. The expected return will be the weighted average of the returns, and, simplistically, the standard deviation of the portfolio will be the root mean square of th...
by David Scubadiver
Thu Feb 16, 2017 12:54 pm
Forum: Personal Finance (Not Investing)
Topic: What's Your Credit Card Rewards Strategy?
Replies: 1125
Views: 141224

Re: What's Your Credit Card Rewards Strategy?

I am sure that I can do better, but my most recent "strategy" is to move my brokerage account to Merrill Edge, qualify for platinum reward honors program at bank of america and use the Cash Rewards card for gas (earning 5.25%), and using their travel rewards card for everything else, but ...
by David Scubadiver
Thu Feb 16, 2017 12:12 pm
Forum: Investing - Help with Personal Investments
Topic: Talking sense
Replies: 34
Views: 2352

Re: Talking sense

In watching the wiki on risk tolerance, I was reminded that risk tolerance is a factor "ability, willingness and need". When I was young with a stable job, I was able to take a lot of risk, and being 100% invested in stocks worked for me. I was always willing to take risk, knowing that I w...
by David Scubadiver
Thu Feb 16, 2017 11:59 am
Forum: Personal Finance (Not Investing)
Topic: What's Your Credit Card Rewards Strategy?
Replies: 1125
Views: 141224

Re: What's Your Credit Card Rewards Strategy?

I am sure that I can do better, but my most recent "strategy" is to move my brokerage account to Merrill Edge, qualify for platinum reward honors program at bank of america and use the Cash Rewards card for gas (earning 5.25%), and using their travel rewards card for everything else, but r...
by David Scubadiver
Thu Feb 16, 2017 11:50 am
Forum: Personal Finance (Not Investing)
Topic: Share your net worth progression
Replies: 461
Views: 109763

Re: Share your net worth progression

I started working in 1993 and maxed out my 401(k) at that time. Beginning in 2002, I was able to contribute in excess of the standard maximum to my 401(k). The years, contribution amounts and salary for years I have a handy record or memory, are as follows: Contribution Salary 1994 $(9,240.00) $83,0...
by David Scubadiver
Thu Feb 16, 2017 11:04 am
Forum: Personal Finance (Not Investing)
Topic: Credit cards vs. Cash
Replies: 111
Views: 5104

Re: Credit cards vs. Cash

If you are poor and miserly or rich and miserly, you are a miser nonetheless. Well, what's a miser? Someone who doesn't waste money and regret it later? You quoted my response to a user who stated, "If you have no self control and don't understand the concept of arithmetic then you shouldn't h...
by David Scubadiver
Wed Feb 15, 2017 6:29 pm
Forum: Personal Finance (Not Investing)
Topic: Credit cards vs. Cash
Replies: 111
Views: 5104

Re: Credit cards vs. Cash

Like many people, I have more money than I know what to do with. It simply doesn't matter to my daily finances if I spend $45 on a gallon of organic grade B maple syrup. Yet, when I buy the syrup today and make a similar purchase tomorrow, and by Saturday I forget that I charged the maple syrup and...
by David Scubadiver
Wed Feb 15, 2017 4:55 pm
Forum: Personal Finance (Not Investing)
Topic: Credit cards vs. Cash
Replies: 111
Views: 5104

Re: Credit cards vs. Cash

Like many people, I have more money than I know what to do with. It simply doesn't matter to my daily finances if I spend $45 on a gallon of organic grade B maple syrup. Yet, when I buy the syrup today and make a similar purchase tomorrow, and by Saturday I forget that I charged the maple syrup and ...
by David Scubadiver
Wed Feb 15, 2017 10:55 am
Forum: Personal Finance (Not Investing)
Topic: Credit cards vs. Cash
Replies: 111
Views: 5104

Re: Credit cards vs. Cash

Don't listen to anything anybody has to say about cash versus credit, including me. Listen to yourself. If three out of ten people spend the same using credit cards as they'd spend without them, and 7 out of ten people spend more using credit cards -- and you are asking the question which is right f...
by David Scubadiver
Tue Feb 14, 2017 9:33 pm
Forum: Investing - Help with Personal Investments
Topic: Talking sense
Replies: 34
Views: 2352

Re: Talking sense

The are privately managed funds so it is much more difficult for me to evaluate the funds. On the plus side, the management fees of those private accounts are reimbursed by the company. But I don't have a great feel for what I am getting with those. I will check the 1, 3, 5.and 10 year performance t...
by David Scubadiver
Tue Feb 14, 2017 2:53 pm
Forum: Investing - Help with Personal Investments
Topic: Talking sense
Replies: 34
Views: 2352

Re: Talking sense

Not sure where you are getting that from that page, but remember the caveat on the M* report " Rating, risk, and return values are relative to each fund’s Morningstar Category" ... and those 2 funds are in different categories, so the comparison is not really apples to apples. Notice that...
by David Scubadiver
Tue Feb 14, 2017 2:52 pm
Forum: Investing - Help with Personal Investments
Topic: Talking sense
Replies: 34
Views: 2352

Re: Talking sense

I think I may have answered my own question. The Blackrock fund is categorized as a "non-traditional bond" fund whereas BND is an "intermediate term bond" index which means the two aren't actually being compared to one another. Sure, the blackrock fund is less risky than other 'n...
by David Scubadiver
Tue Feb 14, 2017 1:59 pm
Forum: Investing - Help with Personal Investments
Topic: Talking sense
Replies: 34
Views: 2352

Re: Talking sense

Yeah morning star has the best charts that I know of because for the most part they show total return. I just wanted to make sure you saw how volatile the fund you chose can be. Yes its less volatile than stocks but it might not have the effect you were looking for especially when we have another c...
by David Scubadiver
Mon Feb 13, 2017 4:26 pm
Forum: Investing - Help with Personal Investments
Topic: Talking sense
Replies: 34
Views: 2352

Re: Talking sense

Wound up allocating 40% of the 401(k) to BSIIX (Blackrock Strategic Income Opportunity Fund). Should return more than cash and be less volatile than the equities. What other bond choices does your 401k have. This one seems pretty risky for bonds to me, not to mention a possibly high .59%ER unless y...
by David Scubadiver
Mon Feb 13, 2017 12:54 pm
Forum: Investing - Help with Personal Investments
Topic: Talking sense
Replies: 34
Views: 2352

Re: Talking sense

No ticker symbols. That has always been the most difficult part of choosing investments from my plan, unfortunately. Only a handful of choices have ticker symbols.
by David Scubadiver
Mon Feb 13, 2017 11:48 am
Forum: Investing - Help with Personal Investments
Topic: Talking sense
Replies: 34
Views: 2352

Re: Talking sense

Wound up allocating 40% of the 401(k) to BSIIX (Blackrock Strategic Income Opportunity Fund). Should return more than cash and be less volatile than the equities. What other bond choices does your 401k have. This one seems pretty risky for bonds to me, not to mention a possibly high .59%ER unless y...
by David Scubadiver
Mon Feb 13, 2017 11:01 am
Forum: Investing - Help with Personal Investments
Topic: Talking sense
Replies: 34
Views: 2352

Re: Talking sense

Wound up allocating 40% of the 401(k) to BSIIX (Blackrock Strategic Income Opportunity Fund). Should return more than cash and be less volatile than the equities.
by David Scubadiver
Mon Feb 13, 2017 10:36 am
Forum: Investing - Help with Personal Investments
Topic: Talking sense
Replies: 34
Views: 2352

Re: Talking sense

David, you are 100% stock, but afraid to move into bonds because they might lose money? What's wrong with this picture? The bottom line is you should not be in 100% stocks, and bonds do not lose 50%, stocks do! Get your asset allocation down to 60 or 50% stocks and do whatever you want with the res...
by David Scubadiver
Mon Feb 13, 2017 10:29 am
Forum: Investing - Help with Personal Investments
Topic: Talking sense
Replies: 34
Views: 2352

Re: Talking sense

Why not just stay invested, and if you need cash to throw into the market when there is "blood in the streets" you can borrow it? It sounds like you want to stay in the stock market but are making an educated guess of a decline and do not want to miss the opportunity that decline would pr...
by David Scubadiver
Mon Feb 13, 2017 10:25 am
Forum: Investing - Help with Personal Investments
Topic: Talking sense
Replies: 34
Views: 2352

Re: Talking sense

Finally, it's very easy to say that you would invest as much as you can when the market crashes. Unfortunately, the evidence shows that many if not most people are generally bad at this. You may be different, but you really don't know since you admitted you've been basically 100% in the stock marke...
by David Scubadiver
Mon Feb 13, 2017 8:16 am
Forum: Investing - Help with Personal Investments
Topic: Talking sense
Replies: 34
Views: 2352

Re: Talking sense

Maybe it is because I have never invested much outside of stocks, but I keep thinking that if rates rise and the economy flounders, any money invested is going to lose value, but being in cash will make me better able to be a buyer at firesale prices. I suppose the potential to lose 100,000 on a 1,0...
by David Scubadiver
Sun Feb 12, 2017 8:56 pm
Forum: Investing - Help with Personal Investments
Topic: Talking sense
Replies: 34
Views: 2352

Talking sense

I am 49 with two young boys who are going on 4 and 7 later this year. I have always invested in the stock market, usually being close to fully invested and not usually investing with a boglehead mentality. I've done a lot of trading over the years, but have also invested through my 401(k). I earn a ...
by David Scubadiver
Tue Dec 20, 2016 9:24 pm
Forum: Investing - Help with Personal Investments
Topic: Good News For Bonds!
Replies: 98
Views: 11573

Re: Good News For Bonds!

You are correct. The interest rate risk is the same. The market risk is the same. The only thing that differs is that I can't hold the fund to maurity and the consequence of that is that I may be forced to take a loss at the time I am required to make a redemption. That risk can be managed as you sa...
by David Scubadiver
Tue Dec 20, 2016 5:02 pm
Forum: Investing - Help with Personal Investments
Topic: Good News For Bonds!
Replies: 98
Views: 11573

Re: Good News For Bonds!

"A modest rise in interest rates—let's use 2% in a year—will bring a 20% price loss to a U.S. Treasury bond with a 10-year duration. With the current coupon just under 2%, this would bring a total return of -18%" "It's conceivable that interest rates could rise 2% over 12 months if in...
by David Scubadiver
Tue Dec 20, 2016 4:44 pm
Forum: Investing - Help with Personal Investments
Topic: Good News For Bonds!
Replies: 98
Views: 11573

Re: Good News For Bonds!

Sorry, I was editing while you were responding. And.... I can lose substantial sums of money in scenario 2 simply because the market "crashes" on or about 12/31/xx. Yes, I understand that not everybody has a fixed date by when they expect to tap their portfolio, but if I have a series of &...
by David Scubadiver
Tue Dec 20, 2016 4:39 pm
Forum: Investing - Help with Personal Investments
Topic: Good News For Bonds!
Replies: 98
Views: 11573

Re: Good News For Bonds!

Take my example. I am investing for a fixed period of time, December 31, xxxx. Scenario 1: I have a fixed basket of bonds maturing 12/31/xx. Scenario 2: I have a basket of ever changing bonds that will never mature (i.e., a bond etf). Barring a default, I know exactly what I will have on 12/31/xx in...
by David Scubadiver
Tue Dec 20, 2016 7:51 am
Forum: Investing - Help with Personal Investments
Topic: Good News For Bonds!
Replies: 98
Views: 11573

Re: Good News For Bonds!

Presumably there is no disagreement that a bond fund can have a terrible day or even a terrible year. If you have a date by when you plan to sell, and you have a choice between holding individual bonds maturing on that date or a bond fund with a duration approximating that date, you certainly have i...

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