Search found 579 matches

by Garco
Tue Apr 19, 2016 7:20 pm
Forum: Investing - Help with Personal Investments
Topic: How to invest an inheritance that's half of my net worth?
Replies: 7
Views: 916

Re: How to invest an inheritance that's half of my net worth?

Something similar happened to me a few years ago. I inherited a combination of cash and securities (stocks, ETF's, CD's, bond funds), at a time when I was on the verge of retirement. Some of what I did might be relevant to you. Perhaps not. You can decide. Two things I did rather quickly. 1. Paid of...
by Garco
Sat Apr 16, 2016 2:15 pm
Forum: Investing - Help with Personal Investments
Topic: Count TIAA Traditional towards the bond allocation?
Replies: 17
Views: 951

Re: Count TIAA Traditional towards the bond allocation?

I count TIAA Traditional as fixed income. One of the major ways it differs from bonds is that you cannot easily use Trad to rebalance your account. You can take money out via a Transfer Payout Annuity (TPA) over 9 years and a day, and that TPA money can be reallocated to other investments within the...
by Garco
Sat Mar 12, 2016 6:32 pm
Forum: Investing - Help with Personal Investments
Topic: Can Vanguard import cost basis?
Replies: 10
Views: 915

Re: Can Vanguard import cost basis?

I've done exactly what you want done -- but at Fidelity (on investments transferred electronically from Schwab and Merrill Lynch). This was almost completely successful. But when the basis amounts and dates for a given equity had involved multiple purchases and at different dates I had to correct th...
by Garco
Mon Feb 29, 2016 1:44 pm
Forum: Investing - Theory, News & General
Topic: When does the long term start?
Replies: 59
Views: 8738

Re: When does the long term start?

Long term is not forever. But you have to begin at some time.

Chinese proverb: "Every long journey begins with the first step."
by Garco
Thu Feb 25, 2016 2:35 pm
Forum: Investing - Help with Personal Investments
Topic: Differing AA between taxable and retirement accounts?
Replies: 16
Views: 1542

Re: Differing AA between taxable and retirement accounts?

Just another opinion here, but I support option (i) by the OP. I have retirement savings in both tax deferred and taxable accounts. The tax deferred accounts are also distinct from one another in that the core of them are in a 401k, and what I consider to be a supplemental and much smaller part of t...
by Garco
Wed Feb 03, 2016 9:24 am
Forum: Investing - Theory, News & General
Topic: TIAA Re Acct. B/S & performance (Jan)
Replies: 29
Views: 2634

Re: TIAA Re Acct. B/S & performance (Jan)

Hi Garco, I have a different understanding--subject to correction. Look at this link. https://www.tiaa-cref.org/public/tcam/Investment/Commentary?symbol=41091375 The TIAA real estate variable annuity account has been managed by members of the global real estate team (although Mr. Garbutt appears to...
by Garco
Tue Feb 02, 2016 8:41 pm
Forum: Investing - Theory, News & General
Topic: TIAA Re Acct. B/S & performance (Jan)
Replies: 29
Views: 2634

Re: TIAA Re Acct. B/S & performance (Jan)

New TIAA announcement re management of $100 billion in global real assets: https://www.tiaa-cref.org/public/about/press/about_us/releases/articles/pressrelease628.html Lev Note that TIAA Real Estate (TREA) is not mentioned in this announcement of TIAA-CREF's Global Real Assets Division. TREA stands...
by Garco
Mon Feb 01, 2016 3:11 pm
Forum: Investing - Theory, News & General
Topic: TIAA Re Acct. B/S & performance (Jan)
Replies: 29
Views: 2634

Re: TIAA Re Acct. B/S & performance (Jan)

I agree that the allocation of 10-15% of a portfolio to TREA is reasonable. I also agree that the bicoastal strategy of their property holdings is concerning, but they do have a "southern" concentration as well. Should also be mentioned that they've dallied with some international propert...
by Garco
Mon Feb 01, 2016 2:05 pm
Forum: Investing - Theory, News & General
Topic: TIAA Re Acct. B/S & performance (Jan)
Replies: 29
Views: 2634

Re: TIAA Re Acct. B/S & performance (Jan)

I agree that the allocation of 10-15% of a portfolio to TREA is reasonable. I also agree that the bicoastal strategy of their property holdings is concerning, but they do have a "southern" concentration as well. Should also be mentioned that they've dallied with some international properti...
by Garco
Sat Jan 30, 2016 11:18 am
Forum: Investing - Theory, News & General
Topic: TIAA Re Acct. B/S & performance (Jan)
Replies: 29
Views: 2634

Re: TIAA Re Acct. B/S & performance (Jan)

We could have an off-track discussion, but there are characteristics of TREA that made it timeable. The main one was that the RE holdings were priced based on rolling annual appraisals. So REITs were falling well ahead of TREA's downturn in early 2008. This is still the basic method of valuing the p...
by Garco
Sat Jan 30, 2016 10:45 am
Forum: Investing - Theory, News & General
Topic: TIAA Re Acct. B/S & performance (Jan)
Replies: 29
Views: 2634

Re: TIAA Re Acct. B/S & performance (Jan)

Grok: Thank you for your analysis. I am sticking with my (sizable) holding in TREA, which I first invested in 20 years ago. Although I abandoned ship in 2008-9, I reboarded in 2010. TREA's character -- for those who like to classify investments into two classes, equities and FI -- is that it's more ...
by Garco
Sun Jan 03, 2016 1:47 pm
Forum: Investing - Help with Personal Investments
Topic: first RMD this year
Replies: 14
Views: 1402

Re: first RMD this year

I just finished my second year of RMD's. This is basically a replacement of income from my job. Taxes were withheld with each RMD payment. An RMD dollar is more valuable to me than a dollar's income from work, b/c nothing is withheld for SS, Medicare, and other payroll taxes. There isn't much else o...
by Garco
Sat Jan 02, 2016 12:01 pm
Forum: Investing - Theory, News & General
Topic: What are you up YTD? [Year To Date]
Replies: 826
Views: 129305

Re: What are you up YTD? [Year To Date]

Total return +2.3% in my main retirement fund, net of required retirement distributions taken over the year. Pretty disappointing but not disastrous. Overall net worth augmented by nice chunk of found money (inheritance). Partly because of this, we're sitting with a larger than typical amount of cas...
by Garco
Wed Dec 30, 2015 11:02 pm
Forum: Personal Consumer Issues
Topic: Who Reads the Comics?
Replies: 44
Views: 1691

Re: Who Reads the Comics?

I never read the comics anymore. But maybe I should take a lesson from my Dad. He read the funnies every day and also worked the crossword puzzles (in ink) until he was in his 90's. He was never stumped or stymied by a crossword puzzle.
by Garco
Sun Dec 27, 2015 12:51 pm
Forum: Investing - Help with Personal Investments
Topic: Covering my risk while reallocating inherited assets
Replies: 10
Views: 609

Re: Covering my risk while reallocating inherited assets

I agree with those who point out that you have to look at the stepped up basis for each equity you received. This could still leave you vulnerable if you sell if there was a meaningful lag between the date of death and the date you received the assets. That happened to me: in the 2 year lag a couple...
by Garco
Thu Dec 24, 2015 2:22 pm
Forum: Investing - Help with Personal Investments
Topic: Wrote an IPS, looking for a second set of eyes
Replies: 14
Views: 1248

Re: Wrote an IPS, looking for a second set of eyes

Question for the OP: Do you plan to have children? If so then you would want to plan for college savings for them. Yeah we want kids. I didn't include college savings accounts in this yet as we don't know yet how many kids or when. Since your IPS is so detailed and looking far into the future, I su...
by Garco
Wed Dec 23, 2015 4:53 pm
Forum: Investing - Help with Personal Investments
Topic: Wrote an IPS, looking for a second set of eyes
Replies: 14
Views: 1248

Re: Wrote an IPS, looking for a second set of eyes

Question for the OP:

Do you plan to have children? If so then you would want to plan for college savings for them.
by Garco
Thu Dec 17, 2015 11:32 pm
Forum: Personal Finance (Not Investing)
Topic: Can I Afford an $800k Home on $4K/month Take Home?
Replies: 146
Views: 12084

Re: Can I Afford an $800k Home on $4K/month Take Home?

I can't believe that I'm the only one who asked about savings for the kids' college. 4-year old twins will be juniors in college when the OP wants to retire in 15 years. But how will they pay for college? I see no plan here. That's an unforgivable oversight. The costs of raising kids prior to colle...
by Garco
Thu Dec 17, 2015 11:04 pm
Forum: Personal Finance (Not Investing)
Topic: Can I Afford an $800k Home on $4K/month Take Home?
Replies: 146
Views: 12084

Re: Can I Afford an $800k Home on $4K/month Take Home?

I can't believe that I'm the only one who asked about savings for the kids' college. 4-year old twins will be juniors in college when the OP wants to retire in 15 years. But how will they pay for college? I see no plan here. That's an unforgivable oversight. The costs of raising kids prior to colleg...
by Garco
Thu Dec 17, 2015 11:29 am
Forum: Personal Finance (Not Investing)
Topic: Can I Afford an $800k Home on $4K/month Take Home?
Replies: 146
Views: 12084

Re: Can I Afford an $800k Home on $4K/month Take Home?

Definitely not. Have you factored in college savings? Have you factored in property taxes? Have you factored in a new car now and then? I am recently retired and have 4-5X what you have in invested savings. My children have left the nest. No way could I afford $800K home (trading up from my current ...
by Garco
Tue Dec 15, 2015 9:21 pm
Forum: Personal Finance (Not Investing)
Topic: Is TIAA-CREF one of the "good guys"?
Replies: 43
Views: 4806

Re: Is TIAA-CREF one of the "good guys"?

I've been a TIAA-CREF participant for many years. It offers good investment options. Non-TIAA-CREF participants need to realize that many of the plans that the company manages include funds from non-TIAA-CREF providers. In my own plan, for example, I can invest in funds from Vanguard, TRoePrice, Dod...
by Garco
Tue Dec 15, 2015 2:56 pm
Forum: Investing - Help with Personal Investments
Topic: I need some confidence to retire...
Replies: 18
Views: 1932

Re: I need some confidence to retire...

I'm late to this conversation, and I think it has produced excellent advice and a plan. My 2 cents: work 6 mos. to 1 year more, with the express goal of building an emergency or contingency fund. If that would be another $75-100K, that could be golden for you. Stuff happens in retirement. Nothing is...
by Garco
Sun Dec 06, 2015 4:54 pm
Forum: Investing - Theory, News & General
Topic: Investing and Coworkers
Replies: 57
Views: 6414

Re: Investing and Coworkers

At my place of work, every regular employee made mandatory contributions to their 403b, from the top administrators to regular professional employees to secretaries to technical staff to janitors. Nobody talked much about investing, however. To my knowledge only the more senior people contributed be...
by Garco
Thu Nov 19, 2015 11:16 pm
Forum: Investing - Theory, News & General
Topic: How Do You Ignore the Noise?
Replies: 51
Views: 4500

Re: How Do You Ignore the Noise?

The main factor that allows me to ignore the noise is that I am retired, taking my RMD's and SS, and I have enough money to last for the rest of my life. This means that I am still aware of the need to invest and spend my money wisely, but I don't have to take any extra risk to build my nest-egg. Od...
by Garco
Sun Nov 15, 2015 11:27 pm
Forum: Personal Finance (Not Investing)
Topic: High Earner Careers?
Replies: 254
Views: 29246

Re: High Earner Careers?

I made a pretty good salary as an academician -- $150K-$200K in last years prior to retirement, using 12-month salary not 9-month which is more common. But one of my kids makes more than $100k per month, with just a BA degree. Works in media.
by Garco
Thu Nov 12, 2015 10:29 pm
Forum: Investing - Theory, News & General
Topic: Do you hold international bonds in your tax-advantaged space?
Replies: 43
Views: 2714

Re: Do you hold international bonds in your tax-advantaged space?

I own a modest investment in FNMIX. It's beating many domestic bond funds at this time. I've held it for years.
by Garco
Wed Nov 11, 2015 1:29 pm
Forum: Investing - Theory, News & General
Topic: The 60/40 stock-and-bond portfolio mix is dead in 2016?
Replies: 34
Views: 7261

Re: The 60/40 stock-and-bond portfolio mix is dead in 2016?

@Nedsaid. You capture the issue exactly. Although I'm 15 years older than you (and retired), I'm also 15 years closer to "The End." My chance of running out of money before then is slim. Then again, my parents lived into their 90's, and with some luck I might get there, too. I'm well above...
by Garco
Mon Nov 09, 2015 3:51 pm
Forum: Investing - Theory, News & General
Topic: The 60/40 stock-and-bond portfolio mix is dead in 2016?
Replies: 34
Views: 7261

Re: The 60/40 stock-and-bond portfolio mix is dead in 2016?

Retired. 60/40? I was there for maybe a year, as I zoomed down from 65% or so in equities to 55% or so as I crossed the retirement barrier. I'm now at 48% equities and holding. But the 52% that's not equities is also not mainly bonds. It's bonds, stable value funds, real estate, and cash (or equival...
by Garco
Mon Nov 09, 2015 12:04 pm
Forum: Personal Finance (Not Investing)
Topic: When can we retire?
Replies: 66
Views: 8181

Re: When can we retire?

As several people have noted, the elephant in the room in these calculations is the cost of health care in retirement. I would add long-term care insurance to that cost. Your retirement nest-egg and comfy life-style can be wiped out very quickly if you or another family member actually need LTC. $80...
by Garco
Sun Nov 08, 2015 9:01 pm
Forum: Investing - Theory, News & General
Topic: TIAA-CREF Wealth Management Advisors
Replies: 12
Views: 1356

Re: TIAA-CREF Wealth Management Advisors

I've had a series of WMA's at TIAA-CREF, beginning 10 or 12 years ago. I've found them useful mainly for facilitating certain processes such as setting up RMD's. But their advice on investment strategies and the like is minimal and formulaic. In addition to the WMA's, who are supposedly set up to pr...
by Garco
Sun Nov 08, 2015 8:15 pm
Forum: Investing - Help with Personal Investments
Topic: TIAA Real Estate Account (TREA)
Replies: 53
Views: 3888

Re: TIAA Real Estate Account (TREA)

I think the bicoastal emphasis is driven especially by the sense that that's where lot of the foreign RE investments are going. It's not going to Chicago, for example, but rather up and down the West and East Coasts.
by Garco
Sun Nov 08, 2015 12:07 pm
Forum: Personal Finance (Not Investing)
Topic: When can we retire?
Replies: 66
Views: 8181

Re: When can we retire?

Luxury is very subjective. We choose to only splurge occasionally, which makes it more meaningful. Fancy meals, worldly possessions and decadent experiences have a rapidly diminishing marginal utility - hedonic adaptation. We will be in the 45-55 age bracket when our youngest child graduates from h...
by Garco
Sun Nov 08, 2015 11:03 am
Forum: Investing - Help with Personal Investments
Topic: TIAA Real Estate Account (TREA)
Replies: 53
Views: 3888

Re: TIAA Real Estate Account (TREA)

IIRC, prior to 2008 the properties held by TREA were appraised once per year. Only after the crash did they move to quarterly appraisals (with each property being appraised at least once every three months). This meant that prior to the change TREA was slower to respond to changes in the market than...
by Garco
Sat Nov 07, 2015 9:47 pm
Forum: Investing - Help with Personal Investments
Topic: TIAA Real Estate Account (TREA)
Replies: 53
Views: 3888

Re: TIAA Real Estate Account (TREA)

I remember reading a while back something about how this fund is valued. Is it based on periodic appraisals? Is the NAV calculated daily? Yes and yes. Quarterly appraisals of each property. The NAV is calculated daily. That NAV is driven both by the appraisals and the returns on other investments (...
by Garco
Sat Nov 07, 2015 9:03 pm
Forum: Investing - Help with Personal Investments
Topic: TIAA Real Estate Account (TREA)
Replies: 53
Views: 3888

Re: TIAA Real Estate Account (TREA)

As an investor in TREA since it opened in 1995, I agree with many of the comments in this discussion, but not with all. I'll start with the latter. TREA is not like a REIT, and to my mind there is no particular reason to balance TREA with REIT investment. As a practical matter, most TIAA-CREF (T-C) ...
by Garco
Sat Oct 24, 2015 5:33 pm
Forum: Investing - Help with Personal Investments
Topic: Review of 31yr old's portfolio [was Help with 403b fund options]
Replies: 12
Views: 1285

Re: Help with 403b fund options

I like the idea of pairing up your wife's only good option with your two other VG funds.

What a terrible, esp. high ER set of funds your wife has!

A reasonable approach would put about 75-80% in the LC fund, then you could complement that with your funds in 1:1 ratio of those funds.
by Garco
Thu Oct 15, 2015 2:38 pm
Forum: Investing - Help with Personal Investments
Topic: Saving for a house; where should I put my money?
Replies: 42
Views: 3073

Re: Saving for a house; where should I put my money?

We have been saving for a house as well -- or rather for a more expensive house in a more desirable location now that I'm retired.

Since this event could happen within 2 or 3 yrs, we've kept our house savings in (a) 50% cash (MMF) and the rest in (b) a CD, (c) VCSH, (d) CSJ, and (e) MINT.
by Garco
Thu Oct 08, 2015 4:41 pm
Forum: Personal Consumer Issues
Topic: Tipping at a Barbershop
Replies: 54
Views: 4671

Re: Tipping at a Barbershop

I've had the same barber for 25 years. I have less hair, but his prices have gone up. I like him, and he does a good job.

He charges $16 at this time. I pay him $20.
by Garco
Thu Oct 08, 2015 11:03 am
Forum: Investing - Help with Personal Investments
Topic: What is reasonable draw down on $100k taxable account?
Replies: 19
Views: 1553

Re: What is reasonable draw down on $100k taxable account?

Admiral, I hardly see mention of college education for your kids. Are you counting on the inheritance to cover that? College costs a ton of money, even in state schools. With some help from the grandparents (my parents), we managed to save enough to get two kids through private colleges. My income w...
by Garco
Mon Oct 05, 2015 7:48 pm
Forum: Investing - Help with Personal Investments
Topic: 25 years old, new job with a 403b, still owe student loans
Replies: 34
Views: 3828

Re: 25 years old, new job with a 403b, still owe student loans

Thanks for the reply, Garco. I actually ended up just allocating 100% to the CREF Equity Index Account (Class R3, expense ratio of 0.29%), which is supposed to track the performance of the Russel 3000 index. Here's some more info about it: http://enroll.tiaa-cref.org/resources/ffs/194408258.pdf I t...
by Garco
Mon Oct 05, 2015 9:31 am
Forum: Investing - Help with Personal Investments
Topic: 25 years old, new job with a 403b, still owe student loans
Replies: 34
Views: 3828

Re: 25 years old, new job with a 403b, still owe student loans

At your age and stage, I think getting some emergency fund -- but not a large one -- is reasonable. But don't wait long to max out your 403b. From looong experience (I, too, started my career at a university in FL) the biggest thing working for you is TIME -- the number of years that you are contrib...
by Garco
Thu Oct 01, 2015 9:01 pm
Forum: Investing - Help with Personal Investments
Topic: How best to go super aggressive in tax deferred?
Replies: 46
Views: 4813

Re: How best to go super aggressive in tax deferred?

I've got ~20% TIAA Real Estate. Some who hold it think of it as equivalent to half equity and half fixed income. In its form it's more like equity in that you own a share of the total asset value. But in its behavior it tends to move slowly, to be driven by the valuation and returns on commercial re...
by Garco
Thu Oct 01, 2015 2:10 am
Forum: Investing - Help with Personal Investments
Topic: How much of a $1 million windfall to use to buy a home?
Replies: 26
Views: 3215

Re: How much of a $1 million windfall to use to buy a home?

I suggest that you think about future expenditures like this, and less about buying a big mansion. Highly doubt that $1M will be buying a mansion in some HCOL Cali areas. Now the actual mansions I've seen (Hollywood Hills, Bel-Air, Beverly Hills, etc) are well in excess of $5M. :shock: Well "m...
by Garco
Wed Sep 30, 2015 11:08 pm
Forum: Investing - Help with Personal Investments
Topic: How much of a $1 million windfall to use to buy a home?
Replies: 26
Views: 3215

Re: How much of a $1 million windfall to use to buy a home?

To the OP: $1 million? When my 2 kids went to college in 1996-2003, the total cost was about $260,000 (private colleges). Nowadays, it would be about $400,000. When your children enter college in, say, 20 years, that will likely cost $500-$600K for two kids for a similar education. I suggest that yo...
by Garco
Tue Sep 29, 2015 10:41 pm
Forum: Investing - Help with Personal Investments
Topic: How best to go super aggressive in tax deferred?
Replies: 46
Views: 4813

Re: How best to go super aggressive in tax deferred?

Cref stock is 1/3 int'l. It is an all-in-one fund to implement the stock asset class. You will benefit from not seeing the individual returns of lots of sepatate funds and being tempted to tinker too much, reducing your return most of the time. It will simplify your portfolio if you move all of you...
by Garco
Thu Sep 24, 2015 11:36 pm
Forum: Personal Consumer Issues
Topic: Using debit card(s) in France
Replies: 16
Views: 1299

Re: Using debit card(s) in France

I agree with what others have told you, including the suggestion that you know your PIN in numbers , not letters. I ran into that problem many years ago in Italy, but fortunately my son knew the correspondences. One more suggestion. When you take money from an ATM don't use an isolated one but rathe...
by Garco
Thu Sep 24, 2015 10:26 pm
Forum: Investing - Help with Personal Investments
Topic: What's the slope of your glide path? (AA variation over time)
Replies: 28
Views: 2161

Re: What's the slope of your glide path? (AA variation over time)

Thank you. I am using something approximating #3. I reduced my equities share to mid-low 40% in the last couple of years prior to retirement, and am keeping it at moderate level for the next few years.
by Garco
Thu Sep 24, 2015 9:54 pm
Forum: Investing - Help with Personal Investments
Topic: What's the slope of your glide path? (AA variation over time)
Replies: 28
Views: 2161

Re: What's the slope of your glide path? (AA variation over time)

You should note that the Pfau-Kitces approach doesn't only involve a rising glide path after retirement but also a marked reduction in the equity percentage just before or at retirement age. For example, they would expect people to have a much less than 50% equities position at retirement.
by Garco
Wed Sep 09, 2015 8:18 pm
Forum: Investing - Theory, News & General
Topic: What to hold F o r e v e r
Replies: 42
Views: 5641

Re: What to hold F o r e v e r

My only true forever holding is TIAA Traditional, which is a form of Stable Value Fund. It is ballast. It increases in value always. I transfer money into it but never take money out of it, There's a liquidity restriction. But if I need it I can take it out gradually, or I can annuitize it. My heirs...

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