Search found 331 matches

by convert949
Thu Dec 08, 2016 8:32 am
Forum: Investing - Theory, News & General
Topic: "Cash Equivalents" ?
Replies: 16
Views: 1196

Re: "Cash Equivalents" ?

I would include I Bonds, EE Bonds and Treasury Bills held to maturity... I wouldn't. I Bonds and EE Bonds cannot be sold for the first year of ownership. That's a serious liquidity restriction. T bills have a maturity up to 1 year, and can move quite a bit with interest rates. Maybe a 3 month T bil...
by convert949
Wed Dec 07, 2016 11:32 am
Forum: Investing - Theory, News & General
Topic: "Cash Equivalents" ?
Replies: 16
Views: 1196

Re: "Cash Equivalents" ?

Please help me understand what the term "cash equivalents" refers to I assume it would include money market accounts, savings accounts and CDs. But would it also include short term bonds and/or short term treasuries? What else might be considered "cash equivalents"? If thus is c...
by convert949
Tue Dec 06, 2016 8:58 am
Forum: Investing - Theory, News & General
Topic: Israelsen's Research on International Bonds
Replies: 8
Views: 635

Re: Israelsen's Research on International Bonds

Interesting -- this does seem a bit inconsistent and inconclusive. In reviewing our simple three-fund portfolio, a Vanguard advisor recently told me that in PAS accounts they're no longer accepting new clients who aren't open to at least a little bit of int'l fixed-income exposure. Hopefully I mish...
by convert949
Mon Nov 28, 2016 7:00 am
Forum: Investing - Help with Personal Investments
Topic: Vanguard Planner Advice to slice and dice bonds?
Replies: 6
Views: 900

Re: Vanguard Planner Advice to slice and dice bonds?

This is not a flippant answer: Why not ask your spouse? If she can just go with what Vanguard says to do, then it should be pretty clear that it is what you should do. That is, if you invoke VPAS, then do what they say. Good advice, except that DW has a "deer in the headlights" reaction t...
by convert949
Sun Nov 27, 2016 9:39 pm
Forum: Investing - Help with Personal Investments
Topic: Vanguard Planner Advice to slice and dice bonds?
Replies: 6
Views: 900

Re: Vanguard Planner Advice to slice and dice bonds?

This is not a flippant answer: Why not ask your spouse? If she can just go with what Vanguard says to do, then it should be pretty clear that it is what you should do. That is, if you invoke VPAS, then do what they say. Good advice, except that DW has a "deer in the headlights" reaction t...
by convert949
Sun Nov 27, 2016 11:39 am
Forum: Investing - Help with Personal Investments
Topic: Vanguard Planner Advice to slice and dice bonds?
Replies: 6
Views: 900

Vanguard Planner Advice to slice and dice bonds?

I currently have the following portfolio. Using "Big" numbers it is divided up approximately as follows: 20% Cash and I Bonds (7% cash/13% I Bonds) 40% equities (30% US and 10% Intl) 40% bonds as follows: 14% TBM (VBTLX) 13% Int Term Tax Exempt (VWIUX) 8% Short Term Investment Grade (VFSUX...
by convert949
Sun Nov 13, 2016 4:00 pm
Forum: Investing - Theory, News & General
Topic: Vanguard Planner Advice on Bonds
Replies: 4
Views: 899

Re: When experts disagree . . .

Convert949: When in doubt, strive for simplicity (read link below). When experts disagree, it is often because it makes no foreseeable difference. Best wishes. Taylor As always... Sage advice... My reason for the post, upon reflection, was to look for a reason to accept the advice of people who are...
by convert949
Sun Nov 13, 2016 11:02 am
Forum: Investing - Theory, News & General
Topic: Vanguard Planner Advice on Bonds
Replies: 4
Views: 899

Vanguard Planner Advice on Bonds

I recently requested a conversation with a Vanguard Planner on a couple of issues regarding my Portfolio. My Flagship rep suggested that I have a complete plan done as I had not done one since 2009 (thank you Bogleheads). No big surprise, but the planner recommended 15% of the total portfolio to Int...
by convert949
Fri Nov 04, 2016 2:01 pm
Forum: Investing - Theory, News & General
Topic: Paid off home. View as bond or cash in AA if you plan to sell in retirement?
Replies: 32
Views: 2441

Re: Paid off home. View as bond or cash in AA if you plan to sell in retirement?

If we return to the OP's original question, I agree with wolf359 that the capital in a home (primary or secondary) that you intend to sell at some specific time, is more appropriate as a "safety net" than as a bond alternate. Best to all, Bob I think it is more direct to consider the sale...
by convert949
Thu Nov 03, 2016 9:39 am
Forum: Investing - Theory, News & General
Topic: Paid off home. View as bond or cash in AA if you plan to sell in retirement?
Replies: 32
Views: 2441

Re: Paid off home. View as bond or cash in AA if you plan to sell in retirement?

If I have a paid off home, it is still not part of my AA while I am in accumulation mode. It will not be part of my AA UNTIL I sell it. I might consider it as part of planning. For example, if I sold my house today, I'd expect to receive $X, and my total assets would now be $Y. This would/would not...
by convert949
Thu Nov 03, 2016 6:34 am
Forum: Investing - Theory, News & General
Topic: Paid off home. View as bond or cash in AA if you plan to sell in retirement?
Replies: 32
Views: 2441

Re: Paid off home. View as bond or cash in AA if you plan to sell in retirement?

If I have a paid off home, it is still not part of my AA while I am in accumulation mode. It will not be part of my AA UNTIL I sell it. I might consider it as part of planning. For example, if I sold my house today, I'd expect to receive $X, and my total assets would now be $Y. This would/would not...
by convert949
Fri Oct 21, 2016 2:12 pm
Forum: Investing - Theory, News & General
Topic: "Years Of Expenses": Preferable To "% Of Portfolio" For Retirees' Fixed Income?
Replies: 39
Views: 2749

Re: "Years Of Expenses": Preferable To "% Of Portfolio" For Retirees' Fixed Income?

BTW, I don't see too many discussions of this particular situation (ensuring the financial welfare of a surviving spouse once a pension goes away or is reduced due to the death of the primary pensioner) and would be interested in learning about how others plan for it. I suspect SPIAs may play a val...
by convert949
Fri Oct 21, 2016 2:01 pm
Forum: Investing - Theory, News & General
Topic: "Years Of Expenses": Preferable To "% Of Portfolio" For Retirees' Fixed Income?
Replies: 39
Views: 2749

Re: "Years Of Expenses" Preferable To "% Of Portfolio" When Determining Fixed Income Allocation In Retirement?

Some say 5-7 years in fixed income, some say 10 years (Bucket Portfolios) and some say 20 or more years (Bernstein). For me, I choose a time period that allows me to ignore the up's and down's of equities which is...? I currently have 2 years in cash, 10 years in bonds and the balance in equities. ...
by convert949
Fri Oct 21, 2016 10:58 am
Forum: Investing - Theory, News & General
Topic: "Years Of Expenses": Preferable To "% Of Portfolio" For Retirees' Fixed Income?
Replies: 39
Views: 2749

Re: "Years Of Expenses" Preferable To "% Of Portfolio" When Determining Fixed Income Allocation In Retirement?

Some say 5-7 years in fixed income, some say 10 years (Bucket Portfolios) and some say 20 or more years (Bernstein). For me, I choose a time period that allows me to ignore the up's and down's of equities which is...? I currently have 2 years in cash, 10 years in bonds and the balance in equities. ...
by convert949
Fri Oct 21, 2016 10:42 am
Forum: Investing - Theory, News & General
Topic: "Years Of Expenses": Preferable To "% Of Portfolio" For Retirees' Fixed Income?
Replies: 39
Views: 2749

Re: "Years Of Expenses" Preferable To "% Of Portfolio" When Determining Fixed Income Allocation In Retirement?

I personally agree that # 2 makes more sense. Having said that, one can also use a number of years of fixed income to determine an asset allocation that can then be managed as a traditional equity/fixed income ratio. Some say 5-7 years in fixed income, some say 10 years (Bucket Portfolios) and some ...
by convert949
Tue Oct 04, 2016 2:02 pm
Forum: Investing - Theory, News & General
Topic: Do Bogleheads Bucket?
Replies: 89
Views: 8015

Re: Do Bogleheads Bucket?

I think buckets are just labels for doing what Bogleheads do anyway, and maybe a psychological ploy. Bogleheads retirees do not sell equities when they are down. They withdraw from non-equities, but don't bother with the term bucket. They might even buy more equity (rebalance) in down markets. Now ...
by convert949
Mon Oct 03, 2016 11:39 am
Forum: Investing - Help with Personal Investments
Topic: Florida Real estate
Replies: 17
Views: 1789

Re: Florida Real estate

The tax cap protection was extended to non-homestead properties a few years ago here. It's capped at 10% for non-homestead properties, 3% for homesteaded ones. Funny, we have declared residency in FL during 2016 and will not be eligible for Homestead status until 2017. We recently received our prop...
by convert949
Mon Oct 03, 2016 11:07 am
Forum: Investing - Help with Personal Investments
Topic: Florida Real estate
Replies: 17
Views: 1789

Re: Florida Real estate

The tax cap protection was extended to non-homestead properties a few years ago here. It's capped at 10% for non-homestead properties, 3% for homesteaded ones. Funny, we have declared residency in FL during 2016 and will not be eligible for Homestead status until 2017. We recently received our prop...
by convert949
Mon Oct 03, 2016 10:36 am
Forum: Investing - Help with Personal Investments
Topic: Florida Real estate
Replies: 17
Views: 1789

Re: Florida Real estate

The tax cap protection was extended to non-homestead properties a few years ago here. It's capped at 10% for non-homestead properties, 3% for homesteaded ones. Funny, we have declared residency in FL during 2016 and will not be eligible for Homestead status until 2017. We recently received our prop...
by convert949
Mon Oct 03, 2016 7:22 am
Forum: Investing - Help with Personal Investments
Topic: Florida Real estate
Replies: 17
Views: 1789

Re: Florida Real estate

As you are pursuing your due diligence on buying Florida real estate, dig in to get some information and base knowledge about carrying costs that may be higher than you expect: property taxes and windstorm insurance in particular. Florida has a save-our-homes property tax law on the books that prec...
by convert949
Mon Oct 03, 2016 6:29 am
Forum: Investing - Help with Personal Investments
Topic: Florida Real estate
Replies: 17
Views: 1789

Re: Florida Real estate

One more point... Regardless of the appreciation potential, managing rentals at a distance offers unique challenges. I once owned a couple of condos on Florida's east coast (Delray Beach), one of which I occupied as a vacation home and the other as a rental. In the true spirit of Murphy, everything ...
by convert949
Mon Sep 12, 2016 6:35 am
Forum: Investing - Theory, News & General
Topic: I Bond Question...
Replies: 1
Views: 559

I Bond Question...

Having recently declared FL residency, I am in the process of titling assets in ways that would avoid probate. I have been purchasing I Bonds each year for DW and my individual and trust TD accounts. I know that in the trust accounts you cannot have a POD or co-owner as the trust survives the life o...
by convert949
Wed Aug 31, 2016 7:34 am
Forum: Investing - Theory, News & General
Topic: glide path vs. fixed asset allocation [POLL]
Replies: 50
Views: 4301

Re: glide path vs. fixed asset allocation [POLL]

Fixed allocation for each 5 year period starting at 65. Currently 35% Equities. IPS states to reconsider every 5 years and fix a percentage for the following 5 years. Fixed percentage determined by matching liabilities to time period with minimum 15 years fixed income.
by convert949
Wed Aug 31, 2016 6:01 am
Forum: Investing - Theory, News & General
Topic: Retirees Saying No To The Market
Replies: 57
Views: 7674

Re: Retirees Saying No To The Market

My dad used to purchase stocks and equity mutual funds through Prudential when he was working with various outcomes. Like many things in life, he loved to talk about his winners. My mother liked to talk about his losers. When he sold his business (for not very much) in 1986, my mother took all of th...
by convert949
Tue Aug 23, 2016 3:36 pm
Forum: Investing - Theory, News & General
Topic: "How to Tell if Your Retirement Nest Egg Is Big Enough"
Replies: 61
Views: 13734

Re: "How to Tell if Your Retirement Nest Egg Is Big Enough"

As they sometimes say " I represent that remark". I retired at the end of 2007 with a 60/40 portfolio at age 57. It could have been worse as my now "former" Ameriprise guy thought I was too conservative but I luckily overruled his advice. Tough watching 30 years of work go down b...
by convert949
Wed Aug 17, 2016 6:50 am
Forum: Investing - Theory, News & General
Topic: Vanguard upgrading to Brokerage account comes with some nuisances
Replies: 72
Views: 8966

Re: Vanguard upgrading to Brokerage account comes with some nuisances

I have not converted but have recently noticed the upgrade button on my accounts. DW and I have legacy brokerage accounts from when we transferred several "in kind" assets to Vanguard from Ameriprise several years ago. Curiously, hers was automatically upgraded with the new settlement acco...
by convert949
Mon Aug 01, 2016 7:19 am
Forum: Investing - Theory, News & General
Topic: Bucket Portfolios - when to create buckets and how much cash
Replies: 26
Views: 2828

Re: Bucket Portfolios - when to create buckets and how much cash

OK...so I'll bite....buckets or not, how do you best go about determining an optimal amount/%/years of expenses to set aside in cash or equivalents? And is that something you gradually build up in the last years heading into retirement in a taxable account, for example? First, you recognize that th...
by convert949
Sun Jul 31, 2016 6:04 am
Forum: Investing - Help with Personal Investments
Topic: Fixed Income Question...Short Term Bonds or I Bonds
Replies: 15
Views: 2060

Re: Fixed Income Question...Short Term Bonds or I Bonds

... Thanks Phineas... kind of what I thought but requires a change of thinking on my part. Originally, I Bonds were purchased as an alternative to TIPS and have been considered a part of our long term portfolio. ... Nothing prevents you from using the sales proceeds of the short-term bond fund to b...
by convert949
Sat Jul 30, 2016 5:49 am
Forum: Investing - Help with Personal Investments
Topic: Fixed Income Question...Short Term Bonds or I Bonds
Replies: 15
Views: 2060

Re: Fixed Income Question...Short Term Bonds or I Bonds

Going back to the first part of OP's question, and without commenting on the superiority of one short-term debt instrument over another, it doesn't make sense to me to keep two forms of the cushion you're after when you've been happy with one. Since you already own the I Bonds, it makes sense to lo...
by convert949
Fri Jul 29, 2016 2:54 pm
Forum: Investing - Help with Personal Investments
Topic: Fixed Income Question...Short Term Bonds or I Bonds
Replies: 15
Views: 2060

Re: Fixed Income Question...Short Term Bonds or I Bonds

Thanks, Kevin M... I have looked at CD's in the past with some interest for at least the short term end of the spectrum. I would agree that even with a 6 month penalty and a 2% plus yield, it is competitive with short term bond funds and approaches what is available with Intermediate term debt. My o...
by convert949
Fri Jul 29, 2016 11:15 am
Forum: Investing - Help with Personal Investments
Topic: Fixed Income Question...Short Term Bonds or I Bonds
Replies: 15
Views: 2060

Fixed Income Question...Short Term Bonds or I Bonds

I currently have a retirement portfolio (67 and in retirement) where the duration of the fixed income roughly matches my cash needs over time. As such, I have ~1-2 years in a MM account and another 3-4 years in Vanguard Short Term Investment Grade. Until now, I have maintained the short term bond al...
by convert949
Mon Jul 25, 2016 3:59 pm
Forum: Investing - Theory, News & General
Topic: King Solomon was the original Boglehead - historically speaking
Replies: 28
Views: 2075

Re: King Solomon was the original Boglehead - historically speaking

The Talmud also says to diversify: “One should always divide his wealth into three parts: [investing] a third in land, a third in merchandise, and [keeping] a third ready to hand.” Babylonian Talmud, Baba Metzia 42a. Land = Bonds, Merchandise = Equities, Ready to hand = cash and equivalents??? Make...
by convert949
Mon Jul 25, 2016 9:07 am
Forum: Investing - Theory, News & General
Topic: King Solomon was the original Boglehead - historically speaking
Replies: 28
Views: 2075

Re: King Solomon was the original Boglehead - historically speaking

zaboomafoozarg wrote:
Johnnie wrote:Earlier Boglites? Didn't Pharaoh have a "seven years of grain in storage" policy? Pharaohs preceded Kings of Israel.


Yep, the book of Genesis mentioned Joseph doing that while in Egypt.

Sounds like the bucket approach to me!
by convert949
Sat Jul 23, 2016 6:45 am
Forum: Investing - Help with Personal Investments
Topic: USA vs. International Stock Index PERFORMANCE. Please reassure Me!
Replies: 25
Views: 2198

Re: USA vs. International Stock Index PERFORMANCE. Please reassure Me!

Also, what does this mean: "incremental additional benefit up to 50%" ? It means you get even more benefit if you go to 50%. I'll cry foul on this answer. :twisted: It is true but not entirely accurate. Yes, it does mean you get more benefit as you go higher than 20%. But the "increm...
by convert949
Thu Jul 21, 2016 3:45 pm
Forum: Investing - Help with Personal Investments
Topic: Why Not Wellesley?
Replies: 14
Views: 1948

Re: Why Not Wellesley?

Wellesley is a great fund at retirement age. The fund has a good balance and has done well in downturns. Although, today, it is more difficult to judge future performance based on the past performance, the fund is one of the best conservative allocation funds to invest for saving, now that bonds ar...
by convert949
Thu Jul 21, 2016 3:38 pm
Forum: Investing - Help with Personal Investments
Topic: Why Not Wellesley?
Replies: 14
Views: 1948

Re: Why Not Wellesley?

Wellesley is a great fund at retirement age. The fund has a good balance and has done well in downturns. Although, today, it is more difficult to judge future performance based on the past performance, the fund is one of the best conservative allocation funds to invest for saving, now that bonds ar...
by convert949
Thu Jul 21, 2016 3:28 pm
Forum: Investing - Help with Personal Investments
Topic: Why Not Wellesley?
Replies: 14
Views: 1948

Re: Why Not Wellesley?

If Wellesley is going in a taxable account, then I think one really needs to understand the extra income and taxes that this might create for one that can be easily avoided. Agreed... In fact, I have worked to "manage" my income to avoid going over MAGI thresholds for Medicare, etc. I do ...
by convert949
Thu Jul 21, 2016 3:07 pm
Forum: Investing - Help with Personal Investments
Topic: Why Not Wellesley?
Replies: 14
Views: 1948

Re: Why Not Wellesley?

Thank you everyone for your help... We are in a different interest-rate world now so looking at this long of a history is detrimental to any forecasting attempts. IOW, past performance, etc. I do understand that Wellesley has had a "tail wind" over the past few years as it has longer term ...
by convert949
Thu Jul 21, 2016 9:41 am
Forum: Investing - Help with Personal Investments
Topic: Why Not Wellesley?
Replies: 14
Views: 1948

Why Not Wellesley?

I am looking to deploy the proceeds of the recent sale of an asset into our retirement portfolio. The proceeds have dropped my equity allocation from my target of 35% to 30%. I have used Portfolio Visualizer to back test the options that I have considered. The tickers are the investor shares to allo...
by convert949
Sun Jul 17, 2016 10:54 am
Forum: Investing - Theory, News & General
Topic: Maintaining 3-10 yrs expenses in fixed income in retirement rather than set %
Replies: 107
Views: 8461

Re: Maintaining 3-10 yrs expenses in fixed income in retirement rather than set %

I have been pondering a similar approach to the OP. At the end of the day, (and after being retired for 10 years), I have learned that for me, managing my portfolio successfully revolves around having enough in fixed income to avoid a knee jerk reaction in a bad market. While we maintain a detailed ...
by convert949
Mon Jul 11, 2016 6:21 am
Forum: Investing - Theory, News & General
Topic: "Jane Bryant Quinn: Plan for a long retirement and maybe even a 101st birthday party."
Replies: 66
Views: 6872

Re: "Jane Bryant Quinn: Plan for a long retirement and maybe even a 101st birthday party."

My dad used to say when I was growing up "Live fast, die young and make a good looking corpse". He was 89 when he passed last year and in pretty good shape until the last few months (prostate cancer). So, you never know... From a DIY investor standpoint, kind of makes the case for annuitiz...
by convert949
Thu Jul 07, 2016 10:48 am
Forum: Investing - Theory, News & General
Topic: "Why most retirees will never spend down their portfolio" by Michael Kitces
Replies: 89
Views: 11553

Re: "Why most retirees will never spend down their portfolio" by Michael Kitces

baw703916 wrote:"I've got more money than I can ever spend" = first world problem.

A friend of mine calls it a "Problem of Privilege".
by convert949
Tue Jun 21, 2016 5:36 pm
Forum: Investing - Theory, News & General
Topic: Pfau: Why Bond Funds Don't Belong in Retirement Portfolios
Replies: 138
Views: 18729

Re: Pfau: Why Bond Funds Don't Belong in Retirement Portfolios

This is a very thought-provoking article. I always viewed SPIAs as kind of last resort, and was hoping to avoid getting there, but this article makes me rethink the topic. Hm, I'll run some numbers on my own here. Intriguing concept. I did just that... In fact,what I found is that if I purchase an ...
by convert949
Wed Apr 27, 2016 6:31 am
Forum: Investing - Theory, News & General
Topic: Wade Pfau on life-cycle finance retirement planning
Replies: 15
Views: 2276

Re: Wade Pfau on life-cycle finance retirement planning

Interesting discussion. While not well versed in the theories I sensed that retirement investing was different than in the accumulation phase. I felt it needed to be more conservative but age in bonds was just a starting point. Top down view of allocation e.g. going from 60/40 to say 50/50 or 40/60...
by convert949
Fri Apr 22, 2016 10:40 am
Forum: Investing - Theory, News & General
Topic: Anyone Have a Near Retirement Strategy for Sequence of Return Risk?
Replies: 88
Views: 9036

Re: Anyone Have a Near Retirement Strategy for Sequence of Return Risk?

terrabiped wrote: Google "Reducing Retirement Risk with a Rising Equity Glide-Path" by Wade D. Pfau. The strategy he describes makes a lot of sense to me. I agree. This is a follow up to an earlier post I made on this subject. The MN Bogleheads' group did a presentation regarding AA glide...
by convert949
Tue Apr 12, 2016 9:07 am
Forum: Investing - Help with Personal Investments
Topic: VWINX a 1-Stop Shop? [Vanguard Wellesley]
Replies: 43
Views: 7775

Re: VWINX a 1-Stop Shop? [Vanguard Wellesley]

It would be good to know if you are investing in a taxable account, a tax deferred account, or have assets in both kinds of accounts. VWINX may not be as tax friendly as other approaches depending on where it is held. 100% turnover is not good in a taxable account. One could check the tax cost of d...
by convert949
Tue Apr 12, 2016 3:07 am
Forum: Investing - Help with Personal Investments
Topic: VWINX a 1-Stop Shop? [Vanguard Wellesley]
Replies: 43
Views: 7775

Re: VWINX a 1-Stop Shop? [Vanguard Wellesley]

Some time ago, I helped my mother-in-law consolidate her accounts after the death of her husband. As a long time Vanguard client I suggested that at ~ 80, she choose something conservative but with some chance of growth. We decided to split her holdings 50% to Wellesley and 50% to Total Bond Market....
by convert949
Thu Mar 24, 2016 9:45 am
Forum: Investing - Theory, News & General
Topic: Can you be a Boglehead and not hold international equity?
Replies: 38
Views: 3664

Re: Can you be a Boglehead and not hold international equity?

Let's not forget what happened to the Japan. Domestic seemed better than international, for a while. I bet many Japanese people wish they diversified more. What I find interesting are the constant references to Japan as justification for owning a large percentage of International. It seems to me th...
by convert949
Thu Mar 24, 2016 6:38 am
Forum: Investing - Theory, News & General
Topic: Can you be a Boglehead and not hold international equity?
Replies: 38
Views: 3664

Re: Can you be a Boglehead and not hold international equity?

As a skeptic on International, I still maintain 20% of equity because of what Christine Benz said recently. Can't find the link but she indicated that although the diversification benefit has been reduced by markets moving in lockstep, without any International, you would miss owning some pretty goo...
by convert949
Sat Mar 19, 2016 3:19 pm
Forum: Investing - Theory, News & General
Topic: What bond funds do you use, and why?
Replies: 55
Views: 4535

Re: What bond funds do you use, and why?

Toons wrote:Total Bond
Intermediate Term Tax Exempt,
Short Term Investment Grade,

For Income :happy

+1 :sharebeer

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