Search found 2850 matches

by MnD
Sat Apr 29, 2017 1:50 pm
Forum: Investing - Theory, News & General
Topic: Schwab Vs. Vanguard?
Replies: 21
Views: 2484

Re: Schwab Vs. Vanguard?

Decades long happy customer at Schwab. We have a couple of Vanguard ETF's my Schwab accounts and a Vanguard Fund in her 401K. Not having an account at Vanguard does not preclude one from owning their funds or ETF's. In fact it seems like most of the Vanguard complaints here are about their accounts ...
by MnD
Sat Apr 29, 2017 7:08 am
Forum: Investing - Help with Personal Investments
Topic: TSP Lifecycle Funds/G Fund Too Conservative?
Replies: 41
Views: 2181

Re: TSP Lifecycle Funds/G Fund Too Conservative?

I just want to add that TSP folks have no idea of what assets you have outside the TSP. Someone, particularly a retiree, can be 100% G fund in the TSP, and the TSP folks assume that person is invested too conservatively, but actually the TSP could be the entire 'bond' allocation for that person, wi...
by MnD
Fri Apr 28, 2017 3:43 pm
Forum: Investing - Help with Personal Investments
Topic: One Fund? Really?
Replies: 49
Views: 5184

Re: One Fund? Really?

I agree, 70/30 is too high. Lower AA when heading into retirement in order to reduce risk/volatility because you may run into "bad sequence of returns risk," which means a market crash at the wrong time. Posters have mentioned the tax issue, but one way around that is to use Vanguard tax-...
by MnD
Sat Apr 22, 2017 12:46 am
Forum: Investing - Theory, News & General
Topic: Single most important investing advice?
Replies: 83
Views: 7007

Re: Single most important investing advice?

Pay yourself first and spend/enjoy the rest like happy drunken sailors because you never know if you have even one more day on this earth. :beer
by MnD
Wed Apr 19, 2017 9:14 am
Forum: Investing - Theory, News & General
Topic: Article-Argument against Buffet and Bogle's International Advice
Replies: 36
Views: 4099

Re: Article-Argument against Buffet and Bogle's International Advice

I just float along using Vanguard Total World. As of the end of last month, it was US 53.3%, the rest International. That number moves a fraction up/down each month. I never worry about market timing or rebalancing. :beer Which is a record high for the US % going by the MSCI All-World index and mor...
by MnD
Sun Apr 09, 2017 6:28 pm
Forum: Personal Finance (Not Investing)
Topic: Avoiding shafting my local merchants with card fees
Replies: 42
Views: 4079

Re: Avoiding shafting my local merchants with card fees

I was working on a major University campus last week and bought coffee every morning at a campus snack vendor - never saw anything other than card purchases by students typically for $1.50 to $4 sales. The era of cash/check is pretty much over and you should get whatever card (debit, basic credit or...
by MnD
Sun Apr 09, 2017 10:08 am
Forum: Investing - Help with Personal Investments
Topic: Why are the Vanguard Target Retirement Funds so heavily invested in International
Replies: 24
Views: 3210

Re: Why are the Vanguard Target Retirement Funds so heavily invested in International

I have a large % of my $ in the Vanguard 2035 Retirement Fund and it's 48.1% Total Stock Market and 31.7% Total International Stock Market. I'm just beginning to really look at my allocations across the board and the 31.7% seemed high for that fund to be invested in the International Stock Market e...
by MnD
Sun Apr 09, 2017 9:36 am
Forum: Investing - Theory, News & General
Topic: Improving the TSP [for current participants]
Replies: 178
Views: 27246

Re: Improving the TSP [for current participants]

yes, monthly would be a mess. I was thinking annual distributions. One could use an interfund transfer coupled with an annual withdrawal to "reverse rebalance" to your desired AA. Following a big year for stocks withdraw from stocks and vice-versa. Hopefully the ability to identify specifi...
by MnD
Sun Apr 09, 2017 9:08 am
Forum: Investing - Theory, News & General
Topic: Improving the TSP [for current participants]
Replies: 178
Views: 27246

Re: Improving the TSP [for current participants]

I am waiting to see a modification that will allow one to pull withdrawals from various accounts per OUR decisions, rather than proportionately according to our existing AA. If stocks are down, I don't want to pull an RMD from them, no matter what my AA might be. And if stocks are doing well, I'd l...
by MnD
Sat Apr 08, 2017 5:28 pm
Forum: Investing - Theory, News & General
Topic: Improving the TSP [for current participants]
Replies: 178
Views: 27246

Re: Improving the TSP [for current participants]

I am waiting to see a modification that will allow one to pull withdrawals from various accounts per OUR decisions, rather than proportionately according to our existing AA. If stocks are down, I don't want to pull an RMD from them, no matter what my AA might be. And if stocks are doing well, I'd l...
by MnD
Sat Apr 08, 2017 4:19 pm
Forum: Investing - Theory, News & General
Topic: Social Security for Millennials
Replies: 144
Views: 13592

Re: Social Security for Millennials

Using immediateannuities.com is seems it would cost $859,272 to purchase both of our estimated social security benefits at full retirement age without inflation adjustment. So with inflation-adjustment, in excess of $1M. It's great that so many people can just disregard an income stream that might r...
by MnD
Sat Apr 08, 2017 11:10 am
Forum: Investing - Theory, News & General
Topic: Social Security for Millennials
Replies: 144
Views: 13592

Re: Social Security for Millennials

34 years after the major 1983 Social Security reform act, the most significant benefit cut (raising FRA from age 65 to age 67) is only half-way implemented now at age 66 for people retiring today. It will not be fully phased in until 2027. There we also many benefit increases. In contrast, the incre...
by MnD
Fri Apr 07, 2017 8:15 pm
Forum: Personal Finance (Not Investing)
Topic: Avoiding shafting my local merchants with card fees
Replies: 42
Views: 4079

Re: Avoiding shafting my local merchants with card fees

Employees (even at small businesses), steal cash or it can be lost or stolen in a robbery. Checks bounce. Many retailers may have a flat % fee program for all plastic be it debit, low-end credit cards or high end reward cards. The bane of (for example) a local restaurant is the table that gets ice-w...
by MnD
Fri Apr 07, 2017 3:40 pm
Forum: Investing - Theory, News & General
Topic: Improving the TSP [for current participants]
Replies: 178
Views: 27246

Re: Improving the TSP [for current participants]

The WAPO article is rather alarmist about the current withdrawal options. The monthly payment option (which is counted as a "full withdrawal") can be set at anywhere between $25 a month and the full account balance, and changed annually. For someone following a X% of annual portfolio balan...
by MnD
Fri Apr 07, 2017 10:05 am
Forum: Personal Finance (Not Investing)
Topic: Should I drop Chase Sapphire Preferred (have Reserve and Freedom)
Replies: 15
Views: 746

Re: Should I drop Chase Sapphire Preferred (have Reserve and Freedom)

Downgrade the Chase Preferred to Chase Freedom Unlimited (assuming you really meant you have a Chase Freedom Card). If you already have the Freedom Unlimited, downgrade the CSP to Chase Freedom. Your order of use would then be 5% category on Freedom, if not, 3% categories on Chase Sapphire Reserve, ...
by MnD
Thu Apr 06, 2017 7:39 pm
Forum: Personal Finance (Not Investing)
Topic: Some Credit Cards Make You Spend More?
Replies: 69
Views: 3908

Re: Some Credit Cards Make You Spend More?

Credit card sign-up bonuses can be incredibly generous offers to earn hundred of dollars worth of points, miles or cash back. Nevertheless, these offers usually require cardholders to reach a minimum spending threshold within a limited time period. So when a cardholder has to spend thousands of dol...
by MnD
Thu Apr 06, 2017 2:28 pm
Forum: Investing - Theory, News & General
Topic: Social Security for Millennials
Replies: 144
Views: 13592

Re: Social Security for Millennials

In light Mike's comment I feel obliged to point out that "Gen X" will be the first people hit by the current projected shortfall in Social Security. Do we get our own thread? The Census only defines the Baby Boom Generation (1946-64).That had specific, post-war characteristics. The others...
by MnD
Tue Apr 04, 2017 10:36 pm
Forum: Personal Finance (Not Investing)
Topic: Some Credit Cards Make You Spend More?
Replies: 69
Views: 3908

Re: Some Credit Cards Make You Spend More?

Most people are broke, live paycheck to paycheck and have little to no savings. The incentive of credit card use to provide a 2nd or 3rd "income" when needed plus "rewards" is no doubt substantial. For people with assets vastly in excess of any credit card utilization, which rega...
by MnD
Mon Apr 03, 2017 10:28 pm
Forum: Personal Finance (Not Investing)
Topic: Some Credit Cards Make You Spend More?
Replies: 69
Views: 3908

Re: Some Credit Cards Make You Spend More?

A lot of research shows that using any credit card induces you to spend more than when paying with cash, and even pay more for a particular item. I agree. Spending more applies to all credit cards , and it applies to all of us , however much we'd like to deny this. Except now it's debit plastic wit...
by MnD
Mon Apr 03, 2017 10:11 pm
Forum: Investing - Theory, News & General
Topic: Remembering the Crash of 1987
Replies: 66
Views: 6361

Re: Remembering the Crash of 1987

Age 25 for both of us. We were 14 months into investing and since July 1986 had settled on an AA and making deposits 50% in a "pure no load" balanced fund and 50% Vanguard Prime Money Market. Having kids and buying a house were in the near to midterm future so we didn't want to get too agg...
by MnD
Sun Apr 02, 2017 8:50 am
Forum: Investing - Theory, News & General
Topic: Personal experience over time? [How far from retirement, time spent investing]
Replies: 31
Views: 3068

Re: Personal experience over time? [How far from retirement, time spent investing]

18 months from retirement and have been following most but not all of the Boglehead philosophy for 31 years. My first investment in 1986 was a 50:50 fixed allocation of a lower cost "pure no load" balanced fund and Vanguard Prime Money market. I used dollar cost averaging and rebalanced as...
by MnD
Sat Apr 01, 2017 8:03 pm
Forum: Investing - Theory, News & General
Topic: Does your asset allocation derate tax-deferred holdings to account for future tax liability?
Replies: 163
Views: 7202

Re: Does your asset allocation derate tax-deferred holdings to account for future tax liability?

Phineas J. Whoopee wrote:The great majority of my assets are in tax-deferred accounts, so for long-range planning I assume everything will be taxable in the year I use it because other uncertainties are so much greater it makes little practical difference.


Bingo!
by MnD
Sat Apr 01, 2017 12:58 pm
Forum: Investing - Theory, News & General
Topic: educate me on spending/cost in retirement
Replies: 27
Views: 2178

Re: educate me on spending/cost in retirement

Between 15 months prior to now and 18 months out from a mid-50's retirement, our expenses are dropping precipitously. College costs and other dependent expenses were the first biggie to fall off. Mortgage is next. At retirement, taxes will drop by well over 50%, retirement savings (two maxed out 401...
by MnD
Sat Mar 25, 2017 10:53 pm
Forum: Personal Finance (Not Investing)
Topic: How much life insurance?
Replies: 20
Views: 1605

Re: How much life insurance?

$1M/$750K 30 years. If everything is going well healthwise for you and DW you can always add coverage or cancel and get smaller policies later.
What you can't effectively do is scrimp on life insurance amount or term now, then have health issues and then decide to increase coverage or term.
by MnD
Sat Mar 25, 2017 10:42 pm
Forum: Investing - Theory, News & General
Topic: Justification for Adding REITs
Replies: 77
Views: 6136

Re: Justification for Adding REITs

Over a long time horizon, a house is a pile of ruins. I don't know why anyone would consider it an asset rather than a liability, but that's just me. Best-case scenario, it's a low-cost place to live while you build wealth. Homeowners, renters and REIT investors are all paying the many costs of rea...
by MnD
Sat Mar 25, 2017 3:38 pm
Forum: Personal Finance (Not Investing)
Topic: So someone drained $13k from my checking account...
Replies: 130
Views: 15475

Re: So someone drained $13k from my checking account...

I'm skeptical of the several warnings in this thread against allowing auto-pulls from ones checking account. I've used "auto-pulls" from checking for decades and never had any banking problems. Now that I use a credit cards for everything possible they are limited to monthly pulls from two...
by MnD
Sat Mar 25, 2017 2:28 pm
Forum: Investing - Theory, News & General
Topic: Justification for Adding REITs
Replies: 77
Views: 6136

Re: Justification for Adding REITs

Of all the things not well-represented with a global all-cap portfolio, REITs would be dead last on my list to add a side-position in because of my already substantial long-term position in real estate via my home. It's BH mantra to pretend ones home isn't an investment or a real estate position bu...
by MnD
Sat Mar 25, 2017 11:51 am
Forum: Investing - Theory, News & General
Topic: AA after reaching your "freedom number"?
Replies: 39
Views: 4098

Re: AA after reaching your "freedom number"?

Although I guess we need to 'plan' for it, can we really expect a market drop of 50% to remain at the level indefinitely? Depending on our timeframe (even for someone at retirement age), I would like to think that some of this dramatic loss would be recovered by market gains relatively quickly afte...
by MnD
Sat Mar 25, 2017 11:22 am
Forum: Investing - Theory, News & General
Topic: Justification for Adding REITs
Replies: 77
Views: 6136

Re: Justification for Adding REITs

Of all the things not well-represented with a global all-cap portfolio, REITs would be dead last on my list to add a side-position in because of my already substantial long-term position in real estate via my home. It's BH mantra to pretend ones home isn't an investment or a real estate position but...
by MnD
Thu Mar 23, 2017 10:00 pm
Forum: Investing - Theory, News & General
Topic: AA after reaching your "freedom number"?
Replies: 39
Views: 4098

Re: AA after reaching your "freedom number"?

How will you feel if your $3M drops to $1.5M? Is $3M really your number if it can only provide for you in an aggressive portfolio with no major bear market? Many people here are frugal, many are resolute on driving debt and other controllable expenses to zero by retirement, some have pensions or ot...
by MnD
Thu Mar 23, 2017 9:27 pm
Forum: Investing - Theory, News & General
Topic: What % of your income have you converted to wealth?
Replies: 105
Views: 14287

Re: What % of your income have you converted to wealth?

For an early 40s couple: 59.5%. I didn't expect it to be that high. What would be an easy way to adjust this for inflation? You could take each year of medicare taxed earned income from your Social security statement and adjust each one to 2016 dollars using an on-line inflation calculator, and the...
by MnD
Thu Mar 23, 2017 7:58 pm
Forum: Investing - Theory, News & General
Topic: AA after reaching your "freedom number"?
Replies: 39
Views: 4098

Re: AA after reaching your "freedom number"?

We plan for 70/30 for life in a mid-50's retirement starting in 18 months. That's also our lifetime average investment AA for the past 30 years although we have ranged somewhat higher and lower. We have one (years X 1%) pension and two future claims on Social Security (one nearly max, one above aver...
by MnD
Thu Mar 23, 2017 7:47 pm
Forum: Investing - Theory, News & General
Topic: What's your strategy for withdrawing funds in Retirement ?
Replies: 57
Views: 6213

Re: What's your strategy for withdrawing funds in Retirement ?

Plan for 2019 and beyond is 70/30 for life with a 5% of annual portfolio balance (with a 3% of starting balance inflation-adjusted floor) AWR starting at age 56 for both of us. Have 1 pension and almost all our retirement savings are in tax-sheltered accounts so we will be in the middle of the 25% b...
by MnD
Wed Mar 22, 2017 2:32 pm
Forum: Investing - Theory, News & General
Topic: What % of your income have you converted to wealth?
Replies: 105
Views: 14287

Re: What % of your income have you converted to wealth?

I like this way of looking at it. This question made my day, thanks OP. Definitely over 100%. :happy Have always put at least half of salary towards paying down debt (all gone now), saving, investing. Not high salary, frugal, 5 figure salary, 7 figure portfolio, LBYM, it can be done. :happy That's ...
by MnD
Wed Mar 22, 2017 2:15 pm
Forum: Investing - Theory, News & General
Topic: Improving the TSP [for current participants]
Replies: 178
Views: 27246

Re: Improving the TSP [for current participants]

I've been reading this very instructive thread for years and still can't come up with a reason for us to do or want to do Roth conversions now or later. As a 2-income couple since 1985 all our retirement savings was/is done in tax-sheltered accounts. Looking at old tax tables virtually every dollar ...
by MnD
Wed Mar 22, 2017 10:38 am
Forum: Investing - Theory, News & General
Topic: Active Bond Funds Holding Their Own
Replies: 20
Views: 1477

Re: Active Bond Funds Holding Their Own

This is an area where I diverge from Boglehead philosophy. The liquidity premium is something I've observed for decades. My brother was a bond broker and would recommend odd lots from obscure but solid issuers that the firm would acquire from customers, typically when they would be liquidating an es...
by MnD
Tue Mar 21, 2017 1:31 pm
Forum: Investing - Theory, News & General
Topic: What % of your income have you converted to wealth?
Replies: 105
Views: 14287

Re: What % of your income have you converted to wealth?

My wife and I are also around 59%, not counting business assets (counting those it's around 80%), in our mid 40s. Interesting how many people responding are in that range. And how uncharacteristic that level of wealth conversion is. I would imagine the US median is in the mid-single digits. Median ...
by MnD
Tue Mar 21, 2017 11:46 am
Forum: Investing - Theory, News & General
Topic: What % of your income have you converted to wealth?
Replies: 105
Views: 14287

Re: What % of your income have you converted to wealth?

I see the original poster included home equity in their calculations.While this exercise might be interesting to some, how does one compare their number to others given the radical REGIONAL variations in home values, ages and incomes? It's not uncommon for two next door neighbors of the same age, i...
by MnD
Mon Mar 20, 2017 4:30 pm
Forum: Investing - Theory, News & General
Topic: It's worth remembering that bull markets don't last forever
Replies: 95
Views: 6885

Re: It's worth remembering that bull markets don't last forever

If you are comfortable and happy with a 2.74% SWR ($19.2K initial withdrawal from $700K) that - great, but I'd bin that as a savings and retirement income plan failure starting on day one of retirement. I wouldn't have to worry about being killed by the stress of equity volatility because when I to...
by MnD
Mon Mar 20, 2017 4:08 pm
Forum: Investing - Theory, News & General
Topic: It's worth remembering that bull markets don't last forever
Replies: 95
Views: 6885

Re: It's worth remembering that bull markets don't last forever

LOL. I view retirement as consisting of several income streams. The investment account is one of them. If I had to squeeze my entire retirement income out of an investment account tied substantially to the stock market, I'd be damned worried, for sure. Likewise. We don't "need" any income...
by MnD
Mon Mar 20, 2017 2:52 pm
Forum: Investing - Theory, News & General
Topic: It's worth remembering that bull markets don't last forever
Replies: 95
Views: 6885

Re: It's worth remembering that bull markets don't last forever

These net worth calculations take on a new light when you're near or in retirement as opposed to accumulating. I just back-tested a sample investment portfolio of 700k using the years 2006-2016 on a monthly basis (thankfully TSP gives you monthly return data for many years back) with the conservati...
by MnD
Mon Mar 20, 2017 12:30 pm
Forum: Personal Finance (Not Investing)
Topic: Paying $20 to E-File State Return
Replies: 75
Views: 12795

Re: Paying $20 to E-File State Return

I make a PDF file of my state return using Turbotax, then go to the very basic free state-run web site for free electronic filing for anyone who wants to use it. Have the PDF open on one screen while filling in the web-based state return on the other screen. This provides the help of Turbotax in pre...
by MnD
Mon Mar 20, 2017 12:17 pm
Forum: Investing - Theory, News & General
Topic: It's worth remembering that bull markets don't last forever
Replies: 95
Views: 6885

Re: It's worth remembering that bull markets don't last forever

My father had considerable equity exposure in 1972. He had a stroke, died and my mother turned over the account to some advisor. Shortly thereafter the market crashed, most everything was lost, what was left sold and bonds purchased. I had just gotten out of the Air Force, married with a toddler, b...
by MnD
Sun Mar 19, 2017 9:42 pm
Forum: Investing - Theory, News & General
Topic: It's worth remembering that bull markets don't last forever
Replies: 95
Views: 6885

Re: It's worth remembering that bull markets don't last forever

We can, though, plan for a big market dive - and we should, because there will likely be one. How many 30 year periods don't have a big crash? Since 1861, how many rolling 30-year periods have bonds (long term risky ones no less) outperformed stocks? According to Larry Swedroe, 1 period. http://www...
by MnD
Sun Mar 19, 2017 5:11 pm
Forum: Investing - Theory, News & General
Topic: It's worth remembering that bull markets don't last forever
Replies: 95
Views: 6885

Re: It's worth remembering that bull markets don't last forever

As always, there's a huge difference between an accumulation portfolio and a dis-accumulation portfolio. If you are accumulating, you can ride out crashes a lot easier. If you are a retiree who is drawing down their portfolio, it's can literally be impossible to ride out a crash. Not really - with ...
by MnD
Sun Mar 19, 2017 3:23 pm
Forum: Investing - Theory, News & General
Topic: It's worth remembering that bull markets don't last forever
Replies: 95
Views: 6885

Re: It's worth remembering that bull markets don't last forever

I have to imagine it would take [guts --admin LadyGeek] to stick with a 40% stock allocation when the market turns down 40, 50, 60 or more percent. [OT comment removed by admin LadyGeek] Maybe I need to change my username! :mrgreen: I was 50% stock going in to Oct 1987, 75% in 2000/02 and 75% in 20...
by MnD
Sun Mar 19, 2017 1:14 pm
Forum: Investing - Theory, News & General
Topic: What % of your income have you converted to wealth?
Replies: 105
Views: 14287

Re: What % of your income have you converted to wealth?

4 years later still 58%. Pleased with net worth progression but 4 peak earnings years for both of us and weak international equity performance (we are global market cap weighted) kept the wealth to cumulative income ratio in check. College costs wrapped up in 2016 - whew......
by MnD
Sun Mar 19, 2017 9:17 am
Forum: Investing - Theory, News & General
Topic: Anyone else taking less risk
Replies: 115
Views: 9873

Re: Anyone else taking less risk

I am taking less risk because expensive markets offer lower expected returns. I'll keep to the new allocation until the market is less expensive and offers higher expected returns. I'm sure that Fidelity, Vanguard, Blackrock, T Rowe and others have discovered this excellent system and offer activel...
by MnD
Sat Mar 18, 2017 12:21 pm
Forum: Investing - Theory, News & General
Topic: Anyone else taking less risk
Replies: 115
Views: 9873

Re: Anyone else taking less risk

I think anyone sweating their current AA as too high now will have a terrible time maintaining it when there is a big downturn. Your fears will have been confirmed and where the bottom is will be unknown. If the market drops 10%, the posts and articles about the soon to be 50% decline based on X, Y ...
by MnD
Sat Mar 18, 2017 12:04 pm
Forum: Investing - Help with Personal Investments
Topic: Prime Money Market Fund vs. Federal Money Market Fund
Replies: 36
Views: 4389

Re: Prime Money Market Fund vs. Federal Money Market Fund

With an SEC yield now at .80%, Prime MMF is one 1/4 point rate hike from parity or better with the most popular on-line savings accounts. Will Ally, GSBank, Synchrony and others raise rates when MMF's are once again competitive with them? Purepoint Bank already has with its late February entry at 1....

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