Search found 27004 matches

by dbr
Sat Jun 23, 2018 2:33 pm
Forum: Personal Finance (Not Investing)
Topic: Taxes from dividends getting high.. how to handle?
Replies: 18
Views: 1634

Re: Taxes from dividends getting high.. how to handle?

This idea that getting a refund from the IRS is bad is just bunk. Consider two cases: 1. You don't get a refund, but invest the money instead. And your investments lose money. In that case, getting a refund would have helped prevent you from losing money. 2. Tax prep software companies give you a 1...
by dbr
Sat Jun 23, 2018 1:40 pm
Forum: Personal Consumer Issues
Topic: Surprise - Costco sells - but does not install vehicle batteries
Replies: 83
Views: 4814

Re: Surprise - Costco sells - but does not install vehicle batteries

In our area installs are free. 10 minutes to install a battery sure. But how long does it take to get a ride to the store. It's not like every dead battery happens in front of someones house? AAA my friends saves time. Time equals money. AAA batteries get bad reviews because they are of poor qualit...
by dbr
Sat Jun 23, 2018 1:35 pm
Forum: Investing - Theory, News & General
Topic: Retiree do's and don't's in a rising rate environment by Christine Benz
Replies: 11
Views: 1843

Re: Retiree do's and don't's in a rising rate environment by Christine Benz

Thanks for the article, which nicely addresses many of my concerns as a retiree. This section in particular referring to the Lee quote is excellent advice: Don't Lose Sight of the Big Picture Rising interest rates do have the potential to lead to bond losses in the years ahead, and it's wise to bra...
by dbr
Sat Jun 23, 2018 1:32 pm
Forum: Investing - Help with Personal Investments
Topic: Need 3% Steady Income from $1.1 Mil Nest Egg
Replies: 14
Views: 677

Re: Need 3% Steady Income from $1.1 Mil Nest Egg

3% real or nominal? If nominal, purchase CDs and be done with it. I guess I'm missing something? Indeed. But a person surely wants to income pace inflation? If not, a good solution now or eventually is to purchase an SPIA or two. If the retiree has no sources of income other than investments it mig...
by dbr
Sat Jun 23, 2018 1:25 pm
Forum: Investing - Help with Personal Investments
Topic: Need 3% Steady Income from $1.1 Mil Nest Egg
Replies: 14
Views: 677

Re: Need 3% Steady Income from $1.1 Mil Nest Egg

The idea that you have to obtain withdrawals from a portfolio by configuring investments for yield is wrong and will lead you to engage in all sorts of contortions you don't need. The question of how your portfolio grows or shrinks depends entirely on how the withdrawals compare to the total return ...
by dbr
Sat Jun 23, 2018 11:15 am
Forum: Investing - Help with Personal Investments
Topic: Hire financial advisor?
Replies: 21
Views: 1161

Re: Hire financial advisor?

Keep in mind asking for advisor help at Fidelity could get you into a more costly arrangement than you want, including being placed in funds with higher ERs. That does not happen at Vanguard.
by dbr
Sat Jun 23, 2018 10:24 am
Forum: Investing - Help with Personal Investments
Topic: Hire financial advisor?
Replies: 21
Views: 1161

Re: Hire financial advisor?

It is still a question just how much financial advice can come from VPAS, whole picture, distinct from investment management for some of the investments. There must be a description somewhere of what VPAS does and does not do. Here's something general. It seems to be directed mostly toward your por...
by dbr
Sat Jun 23, 2018 10:05 am
Forum: Investing - Help with Personal Investments
Topic: Short-term Treasury ETF vs just buying Treasuries
Replies: 38
Views: 2339

Re: Short-term Treasury ETF vs just buying Treasuries

This is the reason to have a strategy like requiring at least 20 basis points of extra yield per extra year of maturity. We don't know whether sticking with shorter maturities or going with longer maturities will do better, so we just require that we at least get a sufficient term premium to take t...
by dbr
Sat Jun 23, 2018 10:02 am
Forum: Investing - Help with Personal Investments
Topic: Feel like I'm sinking money into international
Replies: 34
Views: 2566

Re: Feel like I'm sinking money into international

If you don't think you should have any international holdings then you made a mistake which you can fix.

If you reached that conclusion because US and international have not performed in lockstep, then that is not a reason to think you made a mistake.
by dbr
Sat Jun 23, 2018 9:55 am
Forum: Personal Finance (Not Investing)
Topic: Inherited house turning into a money pit
Replies: 12
Views: 1796

Re: Inherited house turning into a money pit

Stuck with a house of a disabled family member in a similar situation selling as-is was the best choice. The buyer (a professional contractor) gutted the house completely and did a rehab. Any attempt at maintenance of anything by us would have been money down the drain. You don't even clean the plac...
by dbr
Sat Jun 23, 2018 9:51 am
Forum: Personal Finance (Not Investing)
Topic: Minimizing my money worries in retirement
Replies: 14
Views: 1561

Re: Minimizing my money worries in retirement

People that are already spending very safe amounts from assets don't need and aren't much benefited from buying annuities except to feel better. If that helps then it is an option. I suppose one possible bit of mental accounting is to decouple income needs objectives from objectives to grow the asse...
by dbr
Sat Jun 23, 2018 9:46 am
Forum: Personal Finance (Not Investing)
Topic: Taxes from dividends getting high.. how to handle?
Replies: 18
Views: 1634

Re: Taxes from dividends getting high.. how to handle?

1. You should not be getting a refund from the IRS. You are already withholding too much. So right now your problem is getting better rather than worse. 2. If you do end up owing too much on your tax return, then, yes, you change your W-4. That is routine. 3. We don't know what you are invested in a...
by dbr
Sat Jun 23, 2018 9:35 am
Forum: Investing - Help with Personal Investments
Topic: VBIAX vs. VWELX [Vanguard Balanced Index vs. Wellington]
Replies: 8
Views: 1000

Re: VBIAX vs. VWELX [Vanguard Balanced Index vs. Wellington]

My opinion is that the decision between these two things is a matter of philosophy. It is a question of whether one operates from a point of view that diversified, low cost, index driven funds are a good idea opposed to the idea that astute management can do something special. The data indicates tha...
by dbr
Sat Jun 23, 2018 9:12 am
Forum: Investing - Help with Personal Investments
Topic: What am I overlooking?
Replies: 9
Views: 406

Re: What am I overlooking?

Hi, I am new to forum. I am single, late fifties, two kids (jr in college, jr in high school). I have a defined benefit pension that will yield 65k in about five years, and about 350k in equity in my home. I live in a very stable real estate market, but property taxes continue to rise pretty signif...
by dbr
Sat Jun 23, 2018 9:05 am
Forum: Investing - Help with Personal Investments
Topic: Hire financial advisor?
Replies: 21
Views: 1161

Re: Hire financial advisor?

It is still a question just how much financial advice can come from VPAS, whole picture, distinct from investment management for some of the investments. There must be a description somewhere of what VPAS does and does not do.
by dbr
Sat Jun 23, 2018 8:47 am
Forum: Investing - Theory, News & General
Topic: Retiree do's and don't's in a rising rate environment by Christine Benz
Replies: 11
Views: 1843

Re: Retiree do's and don't's in a rising rate environment by Christine Benz

The one thing I wish she had added was to point out that it is a person's whole portfolio that counts, not the pieces, and what the reasons are that people hold fixed income in the first place. I'm pretty sure she says almost exactly that right at the end of the article: In other words, while you'd...
by dbr
Fri Jun 22, 2018 2:32 pm
Forum: Investing - Theory, News & General
Topic: What does it mean: Rule No. 1: Never lose money
Replies: 69
Views: 5721

Re: What does it mean: Rule No. 1: Never lose money

I think "never lose money" is meant to apply to the selection of individual securities with a great amount of concern for the price paid which is what determines the value. A great company bought at too high a price is a lousy investment. Look at the long dull patch Walmart ran into. Or even Micros...
by dbr
Fri Jun 22, 2018 2:30 pm
Forum: Investing - Help with Personal Investments
Topic: Income Annuities
Replies: 20
Views: 992

Re: Income Annuities

OP asked a similar, but more specific question a year ago. https://www.bogleheads.org/forum/viewtopic.php?f=1&t=218276&p=3357818#p3357818 Without details, no one can answer the current question. "Income annuity" is a pretty vague term. We'd need to know more about the annuity, and about OP. Also th...
by dbr
Fri Jun 22, 2018 1:26 pm
Forum: Investing - Help with Personal Investments
Topic: $1,700,000 from family trust...
Replies: 83
Views: 9948

Re: $1,700,000 "Portfolio Review" update from family trust

It is going to be hard to ward off all of the approaches you are going to get from "asset managers" and you'll both need to be strong. Even if you keep quiet, expect that the bank whose mortgage you pay off and the bank you buy CDs at to push pretty hard for the ability to make 1% (or more) each ye...
by dbr
Fri Jun 22, 2018 12:37 pm
Forum: Investing - Help with Personal Investments
Topic: How can I find out % return on Vanguard Total Bond Index?
Replies: 9
Views: 819

Re: How can I find out % return on Vanguard Total Bond Index?

I'm just looking for a rough mathmatical estimate of what my annual return is assuming I'm earning avg. $6.50 in dividends per month If you want to ignore any change in value of shares, which is part of return, and just account for yield, you can add up your dividends received for a year and divide...
by dbr
Fri Jun 22, 2018 12:21 pm
Forum: Investing - Help with Personal Investments
Topic: How can I find out % return on Vanguard Total Bond Index?
Replies: 9
Views: 819

Re: How can I find out % return on Vanguard Total Bond Index?

The above is fine. If you want a detailed exact answer for the return of a holding from which withdrawals have been taken the strictly correct analysis is internal rate of return which can be configured using the Excel function XIRR. To be really correct you would have to analyze a portfolio that in...
by dbr
Fri Jun 22, 2018 12:16 pm
Forum: Investing - Help with Personal Investments
Topic: Hire financial advisor?
Replies: 21
Views: 1161

Re: Hire financial advisor?

I have been living on SS and a small pension. Total monthly income now is $2600. Total monthly expenses have been about $2000 per month. My tax rate for the past 4 years has been zero. With RMD I'm expecting an additional $2170 in monthly income (expected income $4770/mo), and I will have to start ...
by dbr
Fri Jun 22, 2018 12:05 pm
Forum: Investing - Help with Personal Investments
Topic: Income Annuities
Replies: 20
Views: 992

Re: Income Annuities

As for not being COLA'ed, it was not a concern. If I would have received a (private) pension benefit, it would not have been COLA'ed either. How do I know? Because the pension available to me when I started there in 1979 (later terminated and replaced by the cash balance and 401(k) plans in the mid...
by dbr
Fri Jun 22, 2018 11:16 am
Forum: Investing - Help with Personal Investments
Topic: Income Annuities
Replies: 20
Views: 992

Re: Income Annuities

OP asked a similar, but more specific question a year ago. https://www.bogleheads.org/forum/viewtopic.php?f=1&t=218276&p=3357818#p3357818 Without details, no one can answer the current question. "Income annuity" is a pretty vague term. We'd need to know more about the annuity, and about OP. I would...
by dbr
Fri Jun 22, 2018 11:15 am
Forum: Investing - Help with Personal Investments
Topic: $1,700,000 from family trust...
Replies: 83
Views: 9948

Re: $1,700,000 "Portfolio Review" update from family trust

troubleshooter, You definitely came to the right place and your portfolio plan doesn't look unreasonable to me. However, I'd question why so much cash and would be inclined to simplify further. If you were my brother, I'd suggest the Target 2025 fund for nearly 100% of what was left over after payi...
by dbr
Fri Jun 22, 2018 11:08 am
Forum: Personal Consumer Issues
Topic: Most vs. Least satisfying home impovements
Replies: 35
Views: 3136

Re: Most vs. Least satisfying home impovements

I bet the consensus answer is that everyone really likes improved kitchens and baths and hates but wants/needs plumbing, roofs, and electric.
by dbr
Fri Jun 22, 2018 11:04 am
Forum: Investing - Help with Personal Investments
Topic: Seeking advice on investment strategy
Replies: 6
Views: 324

Re: Seeking advice on investment strategy

I really want to maximize my investment earnings. Please give me some advice. This is the basic question of how much risk to take between holding stocks and bonds. Larry Swedroe has advocated a system of need, ability, and willingness to take risk. I suggest digging out one or two of his basic inve...
by dbr
Fri Jun 22, 2018 10:37 am
Forum: Investing - Help with Personal Investments
Topic: I want to cash in VTSAX
Replies: 21
Views: 1283

Re: I want to cash in VTSAX

I'm 34, and I'm okay with this risk . I have a hard time believing you. Having a desire to sell at the highs suggests that you are not OK with the risk of 100% equities. Additionally, any money that you need in the next 5 years should not be in equities. Maybe a short term bond fund. Correct, if yo...
by dbr
Fri Jun 22, 2018 10:36 am
Forum: Investing - Help with Personal Investments
Topic: Income Annuities
Replies: 20
Views: 992

Re: Income Annuities

If you die tomorrow, are you ok with losing out on your lump annuity payment and not leaving it to somebody? Please correct me if I am wrong, but isn't that how these things work? That is correct and is an additional consideration. A person can buy riders on the policy that guarantee various degree...
by dbr
Fri Jun 22, 2018 10:32 am
Forum: Investing - Help with Personal Investments
Topic: I want to cash in VTSAX
Replies: 21
Views: 1283

Re: I want to cash in VTSAX

But if you sell today, and the market keeps going up, you'll come out behind. Buy and hold, stay the course. Investing should not be gambling where you try to beat the house. The long-term 10% annual historical return from the stock market INCLUDES the crashes. Read that again. You didn't have to j...
by dbr
Fri Jun 22, 2018 10:29 am
Forum: Investing - Help with Personal Investments
Topic: I want to cash in VTSAX
Replies: 21
Views: 1283

Re: I want to cash in VTSAX

How much will I have to pay in taxes when I do finally sell my shares? To know that you have to fill out what your tax return will look like at the time. Under current tax law it could be zero, but the effect via phase outs, SS taxability, etc., etc., etc. could be quite large. You can also never s...
by dbr
Fri Jun 22, 2018 10:25 am
Forum: Investing - Theory, News & General
Topic: Retiree do's and don't's in a rising rate environment by Christine Benz
Replies: 11
Views: 1843

Re: Retiree do's and don't's in a rising rate environment by Christine Benz

That is a really good article. Maybe a blitz of references to it everytime someone posts in alarm about "rising interest rate environment" would be a good thing. I especially like the reference to a "more nuanced approach." The one thing I wish she had added was to point out that it is a person's wh...
by dbr
Fri Jun 22, 2018 10:19 am
Forum: Investing - Theory, News & General
Topic: Avoiding Capital Gains Tax
Replies: 15
Views: 1362

Re: Avoiding Capital Gains Tax

You might want to change to Specific Id so that you can look at each separate lot (dividends reinvested and other purchases) to find some with losses and sell those along with enough with those with small gains to bring up to desired amount. You may not have enough losses to accomplish this. Vangua...
by dbr
Fri Jun 22, 2018 10:00 am
Forum: Investing - Theory, News & General
Topic: Avoiding Capital Gains Tax
Replies: 15
Views: 1362

Re: Avoiding Capital Gains Tax

Just to confirm, people are correct in directing you to breakdown the tax liability by tax lots and sell those with the least liability.
by dbr
Fri Jun 22, 2018 9:55 am
Forum: Investing - Help with Personal Investments
Topic: I want to cash in VTSAX
Replies: 21
Views: 1283

Re: I want to cash in VTSAX

I purchased 20K in VTSAX about a year ago. I'm up 15% in 1 year. If I sell today, and then buy the shares back at another upcoming low, will this be to my benefit? Or will I lose some gains in the long-term by repurchasing at a higher price than my original purchase? Trying to time market movements...
by dbr
Fri Jun 22, 2018 9:45 am
Forum: Personal Consumer Issues
Topic: Most vs. Least satisfying home impovements
Replies: 35
Views: 3136

Re: Most vs. Least satisfying home impovements

Most: kitchen, bath, LED bulbs everywhere (almost 100% converted), landscaping, replacing old sidewalks with new concrete. Least: plumbing that had to be dealt with -- well it is satisfying but mostly in the sense of making sure it all still works, no lead water pipes etc. Also -- super most: hiring...
by dbr
Fri Jun 22, 2018 9:40 am
Forum: Investing - Help with Personal Investments
Topic: Income Annuities
Replies: 20
Views: 992

Re: Income Annuities

Recently met with my Fidelity advisor, who after learning a source of income will be stopping in Sept (from a job I retired from two years ago) suggested income annunities to fund essential expenses. Other income comes from social security and of course, can come from savings/investments. I know as...
by dbr
Fri Jun 22, 2018 9:29 am
Forum: Investing - Help with Personal Investments
Topic: $1,700,000 from family trust...
Replies: 83
Views: 9948

Re: $1,700,000 "Portfolio Review" update from family trust

The array of investments you list seems unnecessarily "decorated" with additional funds that are not needed. I would start with a clear understanding of the asset allocation you want and then follow the recommendations for tax efficient fund location to realize that allocation as a three fund portfo...
by dbr
Thu Jun 21, 2018 5:16 pm
Forum: Investing - Help with Personal Investments
Topic: Grandparents requested our help to manage $300K
Replies: 29
Views: 3362

Re: Grandparents requested our help to manage $300K

Hello! I'm Beach's wife and I have an update. Good News - They bought a boat, and are very excited about it. We're happy for them. Bad News - They've been going to "Financial Seminars" :oops: I had no idea people set these things up to take advantage of old people. They really are a target market f...
by dbr
Thu Jun 21, 2018 2:25 pm
Forum: Investing - Theory, News & General
Topic: Does an IPS really need to be 5 pages long to be valuable?
Replies: 56
Views: 2369

Re: Does an IPS really need to be 5 pages long to be valuable?

My IPS Statement is outlined for others, my hares, to follow after my demise. I’m missing something. Why would your heirs need a plan that was intended to meet your goals, after you are gone? Your goals are no longer a factor then. Wouldn’t they just need a list of debts and investing accounts, wit...
by dbr
Thu Jun 21, 2018 12:09 pm
Forum: Investing - Theory, News & General
Topic: Does an IPS really need to be 5 pages long to be valuable?
Replies: 56
Views: 2369

Re: Does an IPS really need to be 5 pages long to be valuable?

I do not have an IPS (Investment Policy Statement). With only three broad market index funds, plus a "stay-the-course" philosophy, I found an IPS to be an unnecessary waste of time. Our lives are frittered away with detail. Simplify. Simplify. -- Henry David Thoreau Thanks! Exactly. My initial IPS ...
by dbr
Thu Jun 21, 2018 12:06 pm
Forum: Investing - Help with Personal Investments
Topic: "Never time the market" vs. lump sum investment
Replies: 46
Views: 1990

Re: "Never time the market" vs. lump sum investment

Because what investors need to hear when they ask this question (which they do almost every day on this board) is not advice about allocation instead of DCA/lump sum: they need the complete answer. Which, it seems, we agree is something like the following. "Using DCA on a windfall instead on invest...
by dbr
Thu Jun 21, 2018 12:03 pm
Forum: Investing - Help with Personal Investments
Topic: Life Strategy Growth Fund, Target Fund, or Total Stock Market
Replies: 45
Views: 2516

Re: Life Strategy Growth Fund, Target Fund, or Total Stock Market

I don't know enough about how the NY teachers pension system works. Does your school district match part of your contribution? Here in MN we all pay about 7.5% employee and 7.5% employer contribution out of every check. This makes it pretty easy to make projections about how much the pension will p...
by dbr
Thu Jun 21, 2018 11:48 am
Forum: Investing - Theory, News & General
Topic: Revisiting Risk and Reward
Replies: 16
Views: 1125

Re: Revisiting Risk and Reward

Siamond, could you please put in option to download the articles as PDF format. (get lots of extraneous material when trying to convert the webpage to PDF using browser). your PDF could keep formatting, pagination, and all attribution Hm. Good question. I don't think there is a standard solution wi...
by dbr
Thu Jun 21, 2018 11:46 am
Forum: Investing - Help with Personal Investments
Topic: Life Strategy Growth Fund, Target Fund, or Total Stock Market
Replies: 45
Views: 2516

Re: Life Strategy Growth Fund, Target Fund, or Total Stock Market

I would start by figuring out how much your teachers pension fund will pay you in retirement, and at what age you can take it. It's probably some formula like 50% of your highest years salary. Once you know this you will have a better target as to how much you have to save in your personal accounts...
by dbr
Thu Jun 21, 2018 11:44 am
Forum: Investing - Help with Personal Investments
Topic: "Never time the market" vs. lump sum investment
Replies: 46
Views: 1990

Re: "Never time the market" vs. lump sum investment

But Vanguard poses it as being about the wrong question and the wrong odds. No. This question (DCA vs lump sum investment) is not only an INCREDIBLY common question, even among investors with some experience, but it is EXACTLY the question posed by the OP. Issues like this, where the intuitive acti...
by dbr
Thu Jun 21, 2018 11:27 am
Forum: Investing - Theory, News & General
Topic: Does an IPS really need to be 5 pages long to be valuable?
Replies: 56
Views: 2369

Re: Does an IPS really need to be 5 pages long to be valuable?

The recommendation for an IPS is to ensure that people think through their investing properly rather than flying around with wrong, half-baked, or constantly waffling and flapping in the breeze ideas. Once that purpose is achieved or if a person is not doing that, it isn't needed. An IPS might be a ...
by dbr
Thu Jun 21, 2018 11:17 am
Forum: Investing - Help with Personal Investments
Topic: Life Strategy Growth Fund, Target Fund, or Total Stock Market
Replies: 45
Views: 2516

Re: Life Strategy Growth Fund, Target Fund, or Total Stock Market

I would start by figuring out how much your teachers pension fund will pay you in retirement, and at what age you can take it. It's probably some formula like 50% of your highest years salary. Once you know this you will have a better target as to how much you have to save in your personal accounts...
by dbr
Thu Jun 21, 2018 10:25 am
Forum: Investing - Help with Personal Investments
Topic: "Never time the market" vs. lump sum investment
Replies: 46
Views: 1990

Re: "Never time the market" vs. lump sum investment

Vanguard does publish a misleading result, however. They state that lump sum comes out ahead about two thirds of the time. This is true but the misleading part is that the possibility that DCA comes out ahead 1/3 of the time makes the proposition sound like a bet with odds. I'm not sure what you me...
by dbr
Thu Jun 21, 2018 10:19 am
Forum: Investing - Help with Personal Investments
Topic: What should be my stock/bond allocation?
Replies: 21
Views: 1477

Re: What should be my stock/bond allocation?

Thank you for your responses. I am new to this so let me give some more detail. The sale of the business will generate all cash for us (8 million). Our business was everything. Outside of the sale, we have two years worth of living expenses and a house in which we have 65% equity. To cover 3 kids a...