Search found 19180 matches

by dbr
Sun Aug 14, 2016 1:47 pm
Forum: Personal Finance (Not Investing)
Topic: Cash in Retirement
Replies: 14
Views: 2393

Re: Cash in Retirement

I don't know what most people do. I hate cash since it is a non-performing asset. I try to have as little cash as possible. So I pay expenses with a credit card, then pay off the credit card with money in a checking account. Usually the checking account balance is about one month of expenses. I sel...
by dbr
Sun Aug 14, 2016 12:05 pm
Forum: Investing - Theory, News & General
Topic: The annuity puzzle, and a suggestion
Replies: 108
Views: 6790

Re: The annuity puzzle, and a suggestion

fwiw While once very popular in France, Britain, and the United States, tontines have been banned in Britain, pursuant to the British Life Assurance Act 1774, 14 Geo. 3, c. 48, and as amended, and in the United States. See, e.g., Warnock v. Davis, 104 U.S. 775, 779 (1881).[9] Such financial instrum...
by dbr
Sat Aug 13, 2016 6:23 pm
Forum: Personal Finance (Not Investing)
Topic: What happens if I don't activate my card?
Replies: 6
Views: 815

Re: What happens if I don't activate my card?

One of my two credit cards was lost [...] The thing is, I only really need one card. (I know this is not what you were asking but...) And what happens if you go from two cards to just one and then that one and only card gets lost or compromised? (thus needs replacing) For many people this can be ra...
by dbr
Sat Aug 13, 2016 6:21 pm
Forum: Personal Finance (Not Investing)
Topic: Help me understanding compensation in tech: Bonus, Stocks?
Replies: 16
Views: 1576

Re: Help me understanding compensation in tech: Bonus, Stocks?

Having worked in tech companies for over 30 years, I've seen it all. Just a sampling: Stock options: given as incentive to join. Generally vested over some number of years as a way to hold you there. Most often, some number are granted in subsequent years to bind the golden handcuffs. In down times...
by dbr
Fri Aug 12, 2016 5:37 pm
Forum: Investing - Theory, News & General
Topic: TIPS - Did you give up?
Replies: 256
Views: 29689

Re: TIPS - Did you give up?

I think TIPS is more about risk management than optimizing return. That would be most relevant to someone almost entirely invested in TIPS while it would make little sense to add some minor allocation to a larger portfolio. It would be interesting to dig out the rationale from those that do make sma...
by dbr
Fri Aug 12, 2016 5:11 pm
Forum: Personal Consumer Issues
Topic: Request for recommendations: English Mystery TV series
Replies: 74
Views: 4035

Re: Request for recommendations: English Mystery TV series

Thanks for the great thread. I don't think we have missed but one or two in the entire set of suggestions so far, including all of Midsomer and the two Australian series. Somewhat related is the American "Elementary" with Holmes, Watson, Gregson, and even Mycroft -- in New York. Further af...
by dbr
Fri Aug 12, 2016 5:03 pm
Forum: Personal Consumer Issues
Topic: How To EARLY Identify/Support Gifted Child?
Replies: 24
Views: 1104

Re: How To EARLY Identify/Support Gifted Child?

I think you are way too early and have no evidence at all. The plan for now is to be good parents as you would for any child.
by dbr
Fri Aug 12, 2016 3:21 pm
Forum: Personal Finance (Not Investing)
Topic: stupid question [Sustainable withdrawal rate]
Replies: 15
Views: 1621

Re: stupid question

And doesn't CAGR take into account sequence of returns? The CAGR is lower than the "average annual return". Ie Dave Ramsey states that the S/P 500 has an average return of 12% which is true but obviously historically you wouldve only earned the 10% CAGR minus costs/inflation. The CAGR doe...
by dbr
Fri Aug 12, 2016 1:07 pm
Forum: Investing - Theory, News & General
Topic: A time to EVALUATE your jitters
Replies: 166
Views: 66409

Re: "noise" and "signal?"

Taylor Larimore wrote:
I've never been sure how one distinguishes "noise" from "signal" in the case of markets.


They are the same.

Best wishes.
Taylor


Good way to put it. I was thinking about what to say about the concept of a signal in markets and wasn't sure how to put it.
by dbr
Fri Aug 12, 2016 11:14 am
Forum: Personal Consumer Issues
Topic: How do you wire money?
Replies: 31
Views: 1802

Re: How do you wire money?

I have wired money as well. My bank makes it expensive and time consuming (at the bank, even the bank rep was complaining about the paper work). The advantage is that when the deposit arrives it is the same as handing over cash for good. That may also be a disadvantage. I am not sure about the timin...
by dbr
Fri Aug 12, 2016 10:44 am
Forum: Investing - Theory, News & General
Topic: The annuity puzzle, and a suggestion
Replies: 108
Views: 6790

Re: The annuity puzzle, and a suggestion

larryswedroe wrote:First, clearly this is INSURANCE not investing.



But why is that so hard to understand? Is it that people just can't get past return and getting more wealthy and realize that the defense against risk is insurance, at least when a viable insurance product exists as it does here.
by dbr
Wed Aug 10, 2016 9:22 am
Forum: Investing - Help with Personal Investments
Topic: Investing a rollover of a few hundred thousand
Replies: 14
Views: 1028

Re: Investing a rollover of a few hundred thousand

Thanks everyone for your help. I will look at LifeStrategy and VDIGX. Why VDIGX. I had to look up the symbol (please save people time by including the fund name). That fund is Dividend Growth Fund. It is unlikely that would be suitable being 100% stocks. If you are dubious about risk in investing t...
by dbr
Wed Aug 10, 2016 9:13 am
Forum: Investing - Help with Personal Investments
Topic: ESOP Questions/Concerns...Advice Needed
Replies: 13
Views: 714

Re: ESOP Questions/Concerns...Advice Needed

With ESOP's, what can go wrong? Is there something I should be wary/watchful of? How should I treat this balance in my retirement planning? One thing that could go wrong is you could lose ALL of your money, and you probably won't be able to know what to look for. When you say "with ESOPS"...
by dbr
Wed Aug 10, 2016 9:06 am
Forum: Investing - Help with Personal Investments
Topic: Are bonds necessary for young investors?
Replies: 58
Views: 3215

Re: Are bonds necessary for young investors?

Everything goes back to the prospects for return and the uncertainty in what that return will actually be. Then one picks where to be on that spectrum to best match what one is trying to do and what kinds of situations suit the person. The first step is to understand how investments behave. As far a...
by dbr
Tue Aug 09, 2016 12:11 pm
Forum: Investing - Theory, News & General
Topic: What if dividends were reinvested according to share of total dividends paid instead of market cap?
Replies: 6
Views: 611

Re: What if dividends were reinvested according to share of total dividends paid instead of market cap?

An index fund has to manage its investment portolio to track the index. I would not think that means reinvesting dividends according to the cap wt. Where did you hear they do that?
by dbr
Tue Aug 09, 2016 12:08 pm
Forum: Investing - Theory, News & General
Topic: Talking about the Bogleheads approach with non-Bogleheads
Replies: 64
Views: 4462

Re: Talking about the Bogleheads approach with non-Bogleheads

I would suggest a couple of good books. You could loan them one or two.

Have them look at this forum and do some reading at "Getting Started"

Don't try to argue why EJ is a problem.
by dbr
Tue Aug 09, 2016 11:53 am
Forum: Investing - Help with Personal Investments
Topic: stock index funds vs high yield tax-free bonds
Replies: 8
Views: 529

Re: stock index funds vs high yield tax-free bonds

It never makes sense to try to make one thing into something else that it is not. It could be you could make sense holding some HY munis, but the reason is not because they would play the role of stocks in a portfolio. What is the reason you want to do this? It would also be unlikely that someone wo...
by dbr
Tue Aug 09, 2016 11:38 am
Forum: Investing - Help with Personal Investments
Topic: Investing a rollover of a few hundred thousand
Replies: 14
Views: 1028

Re: Investing a rollover of a few hundred thousand

I think it is unnecessary to run scared from reading too much press about how bad a time it is to invest. It is always a bad time to invest of that is what you believe. Personally I think Target Retirement Income is a good choice if you want minimum stock risk. I would not reduce stocks to less than...
by dbr
Tue Aug 09, 2016 11:29 am
Forum: Personal Finance (Not Investing)
Topic: Travel for a Year with Family - Career Impact?
Replies: 35
Views: 3474

Re: Travel for a Year with Family - Career Impact?

Wow, I feel like I could have written this post a few years ago. The only difference is that you have more kids :) Don't take a year off from work. You'll find another great job. But you'll back slide. Soon you'll be in the same place. Burned out and working 80 hour weeks. Here's the thing. You're ...
by dbr
Tue Aug 09, 2016 11:28 am
Forum: Investing - Theory, News & General
Topic: et tu, Vanguard? Stock/Bond zig-zag myth
Replies: 58
Views: 4409

Re: et tu, Vanguard? Stock/Bond zig-zag myth

A more important issue is that the lower volatilty of a blend of stocks and bonds is explained more by the much lower volatility of bonds than it is by lack of correlation. The formula that is available for adding two normal distributions shows the contributions from the fraction in stocks, the fra...
by dbr
Mon Aug 08, 2016 3:58 pm
Forum: Investing - Theory, News & General
Topic: et tu, Vanguard? Stock/Bond zig-zag myth
Replies: 58
Views: 4409

Re: et tu, Vanguard? Stock/Bond zig-zag myth

What would you substitute for the Vanguard words? Both equities and bonds stumble, but they tend to do so at different times. This lack of correlation in returns means that a portfolio that combines stocks and bonds is less volatile than a portfolio composed solely of either. That is certainly an i...
by dbr
Mon Aug 08, 2016 3:14 pm
Forum: Investing - Help with Personal Investments
Topic: Why isn't the 3-fund portfolio a 4-fund portfolio?
Replies: 14
Views: 1565

Re: Why isn't the 3-fund portfolio a 4-fund portfolio?

Turnover adds to costs through transaction costs to the fund, not in the ER, and through tax costs to the investor if the result is distributions in taxable accounts. However, my understanding is that transaction costs do not add up to nearly as much in bond funds as in stock funds. To extract the ...
by dbr
Mon Aug 08, 2016 2:39 pm
Forum: Investing - Help with Personal Investments
Topic: Why isn't the 3-fund portfolio a 4-fund portfolio?
Replies: 14
Views: 1565

Re: Why isn't the 3-fund portfolio a 4-fund portfolio?

Turnover adds to costs through transaction costs to the fund, not in the ER, and through tax costs to the investor if the result is distributions in taxable accounts. However, my understanding is that transaction costs do not add up to nearly as much in bond funds as in stock funds. To extract the t...
by dbr
Mon Aug 08, 2016 12:50 pm
Forum: Investing - Help with Personal Investments
Topic: Flat-fee fee-only adviser recommendations -- please
Replies: 10
Views: 764

Re: Flat-fee fee-only adviser recommendations -- please

I would start off looking at NAPFA . Any decent fee-only planner should be able to get you pointed in a right direction. In your case you could consider one that has an emphasis with retirement planning, including Social Security, portfolio income generation and safe withdrawal rates. I believe fro...
by dbr
Mon Aug 08, 2016 12:45 pm
Forum: Investing - Help with Personal Investments
Topic: Flat-fee fee-only adviser recommendations -- please
Replies: 10
Views: 764

Re: Flat-fee fee-only adviser recommendations -- please

FWIW The low rate for Ferri was/is for investment management not for investment advising or financial planning. I have the idea that Ferri would refer people to options at Garrett for planning and advising. I may be wrong about this. You should be clear what exactly you want. I suspect most people w...
by dbr
Mon Aug 08, 2016 12:39 pm
Forum: Personal Finance (Not Investing)
Topic: Time to worry about Treasury Direct???
Replies: 31
Views: 3715

Re: Time to worry about Treasury Direct???

Just to confirm, of course flip phones can send and receive text. Just reading text on a flip phone is a non-issue.
by dbr
Mon Aug 08, 2016 12:37 pm
Forum: Personal Finance (Not Investing)
Topic: Are any Bogleheads financial advisors on the side?
Replies: 21
Views: 2678

Re: Are any Bogleheads financial advisors on the side?

I wouldn't in a million years attempt financial advising on the side. It would be asking for nothing but trouble. I try very hard to avoid telling anyone here anything specific that they "should" do, with the occasional exception.
by dbr
Mon Aug 08, 2016 11:51 am
Forum: Investing - Help with Personal Investments
Topic: Why isn't the 3-fund portfolio a 4-fund portfolio?
Replies: 14
Views: 1565

Re: Why isn't the 3-fund portfolio a 4-fund portfolio?

I guess that says the case for adding international bonds to bonds is less persuasive than the case for adding international stocks to stocks. That would have to do with thinking that diversity in bond holdings is not as meaningful or helpful a concept as diversity in stock holdings. It could even b...
by dbr
Mon Aug 08, 2016 10:32 am
Forum: Personal Finance (Not Investing)
Topic: Travel for a Year with Family - Career Impact?
Replies: 35
Views: 3474

Re: Travel for a Year with Family - Career Impact?

Anything is possible. The one thing that is certain is that you should get out of that job you are in. Travelling the world with six kids those ages will take some serious planning or some serious moxie, but crazier things have been done. You might consider what Plan B is going to look like if you n...
by dbr
Mon Aug 08, 2016 9:52 am
Forum: Personal Finance (Not Investing)
Topic: "4% Rule" ...is broken? [argumentative]
Replies: 150
Views: 8588

Re: "4% Rule" ...is broken? [argumentative]

Why is every rule/theory/idea based on long term trends/studies "broken" because there is a small outlying period. That is not logical. It is like switching your portfolio every year based on what did well last year or the last few years. I think what is really going on is the difference ...
by dbr
Mon Aug 08, 2016 9:44 am
Forum: Personal Finance (Not Investing)
Topic: SWR and Current/Future Cash Flows
Replies: 23
Views: 1571

Re: SWR and Current/Future Cash Flows

I didn't see anyone mention it in this thread, but I was wondering if it would help the OP to run his data through a tool like I-ORP. See http://www.i-orp.com Perhaps the OP could use the fields for Social Security, Annual Retirement Income, Retirement Plans, and Extraordinary Non-Recurring Events ...
by dbr
Sun Aug 07, 2016 9:43 am
Forum: Investing - Theory, News & General
Topic: et tu, Vanguard? Stock/Bond zig-zag myth
Replies: 58
Views: 4409

Re: et tu, Vanguard? Stock/Bond zig-zag myth

I like Nisiprius' intuitive illustration too much. I have to express it like this: Stocks ZZZZZZIGGG! and ZZZZZZAGGG! , whereas bonds * zig and zag . * High-quality bond fund of intermediate duration (TBM, ITT, ...). I think that this should be clear enough for most of us. :happy It really is neces...
by dbr
Sat Aug 06, 2016 1:14 pm
Forum: Personal Finance (Not Investing)
Topic: "4% Rule" ...is broken? [argumentative]
Replies: 150
Views: 8588

Re: "4% Rule" ...is broken? [argumentative]

Haven't we had times before with high valuations and low interest rates (and low inflation). 4% is supposed to be the worst case in history and take care of that. Going to 3% SWR is HUGE and if you all really believe it, then tell us what your new AA is and what moves you are making to prepare for ...
by dbr
Sat Aug 06, 2016 8:53 am
Forum: Personal Finance (Not Investing)
Topic: SWR and Current/Future Cash Flows
Replies: 23
Views: 1571

Re: SWR and Current/Future Cash Flows

Probably the best way to incorporate SWR with significant income streams is to recognize that withdrawal from the portfolio supplies income after those income streams have been used to support expenses. The meaning of "safe" changes because now exhausting the portfolio only means that one ...
by dbr
Fri Aug 05, 2016 11:33 am
Forum: Investing - Help with Personal Investments
Topic: Capital gains offset by capital losses question
Replies: 4
Views: 246

Re: Capital gains offset by capital losses question

One should also consider that net losses offset up to $3000 ordinary income each year and may be carried over. One has to decide if offsetting losses with gains is the best use.
by dbr
Fri Aug 05, 2016 10:38 am
Forum: Personal Consumer Issues
Topic: Family Europe Trip
Replies: 31
Views: 1992

Re: Family Europe Trip

If you fly now, then work on getting bumped off of flights. I got a $600 voucher last week AND a first-class plane ticket for a flight 2-hours after the flight I volunteered to be bumped off of. In order to increase your chances of getting bumped, be sure to book the 2nd to last flight out for the ...
by dbr
Fri Aug 05, 2016 10:02 am
Forum: Personal Finance (Not Investing)
Topic: "4% Rule" ...is broken? [argumentative]
Replies: 150
Views: 8588

Re: "4% Rule" ...is broken? [argumentative]

It's not. The Trinity Study, and updated version done by Wade Pfau show 1929's minimum sustainable withdrawal rate for 30 year retirement and 50% stock allocation was ~5.7% (I'm eyeballing a graph). The only year of the Depression Era that was <5% was 1937, which had a minimum sustainable withdrawa...
by dbr
Fri Aug 05, 2016 9:25 am
Forum: Investing - Help with Personal Investments
Topic: Want to Track a Group of Investments Separately
Replies: 3
Views: 291

Re: Want to Track a Group of Investments Separately

Lots of people end up with investments in different places with different degrees of ability to have software access and track them. In the end maintaining a spreadsheet and either finding ways to download the data or, in some cases, manually entering the data, may turn out to be the most satisfacto...
by dbr
Fri Aug 05, 2016 9:20 am
Forum: Personal Finance (Not Investing)
Topic: "4% Rule" ...is broken? [argumentative]
Replies: 150
Views: 8588

Re: "4% Rule" ...is broken? [argumentative]

People might be interested in this article before being so sure the "rule" is broken. It may or may not be surprising what years were bad years to retire: https://www.kitces.com/blog/the-ratcheting-safe-withdrawal-rate-a-more-dominant-version-of-the-4-rule/ If there is something broken abo...
by dbr
Fri Aug 05, 2016 9:06 am
Forum: Personal Consumer Issues
Topic: Family Europe Trip
Replies: 31
Views: 1992

Re: Family Europe Trip

I love traveling except for the actual traveling part. Especially the airports. I'm guessing you don't have Global Entry since this is your 1st intl vacation. It's $100 for 5 years and it'll save you loads of time when you return back to the US and go through customs and immigration. You also get T...
by dbr
Thu Aug 04, 2016 6:02 pm
Forum: Investing - Help with Personal Investments
Topic: Is my IRA really an IOU to the IRS??
Replies: 58
Views: 5951

Re: Is my IRA really an IOU to the IRS??

Why reason by metaphor when it adds nothing and you still have to do the math? It might be better to just look at the rules for how to pay your taxes and move on -- see here: https://www.irs.gov/retirement-plans If anyone needs to be convinced it is really true they can look here: http://www.annenbe...
by dbr
Thu Aug 04, 2016 2:17 pm
Forum: Investing - Help with Personal Investments
Topic: Does an SPIA have an impact on retirement accumulation targets?
Replies: 25
Views: 1191

Re: Does an SPIA have an impact on retirement accumulation targets?

What am I missing? Isn't your principal gone with an annuity and with a deferred annuity until around age 84/85 all you are getting is a return of that principal. I keep debating about annuities but think I will revisit them when I am in my mid to late 70s and what my financial and health situation...
by dbr
Thu Aug 04, 2016 1:18 pm
Forum: Personal Consumer Issues
Topic: Family Europe Trip
Replies: 31
Views: 1992

Re: Family Europe Trip

In London (I am less familiar with Paris) spend half a day on the hop-on/hop-off double decker bus.

In London learn to ride the tube and also benefit from the excellent taxis.

I would not even attempt to list all the worthwhile things to see. It would be a book, one already written by other people.
by dbr
Thu Aug 04, 2016 1:04 pm
Forum: Investing - Help with Personal Investments
Topic: Compound Interest Question
Replies: 4
Views: 597

Re: Compound Interest Question

Thanks for the info. I do understand how compound interest works I'm just trying to understand where it gets the interest rate from in order to compute the compound interest. Where can I find the current interest rate that it uses ? Is it specific to the mutual fund and if so where is it listed? Th...
by dbr
Thu Aug 04, 2016 11:25 am
Forum: Personal Consumer Issues
Topic: Any advice---Toyota 4 runner vs. Honda Pilot--2016 cars
Replies: 75
Views: 5131

Re: Any advice---Toyota 4 runner vs. Honda Pilot--2016 cars

barnaclebob wrote:
Also 50% of the responses from here on out will be "get snow tires" or "get a subaru".


A Subaru with snow tires :?
by dbr
Thu Aug 04, 2016 10:55 am
Forum: Investing - Help with Personal Investments
Topic: No faith in stocks/bonds - Where to park cash?
Replies: 38
Views: 3734

Re: No faith in stocks/bonds - Where to park cash?

Taking all that you have said above at face value the obvious place for this money is a one year CD.

A perfectly rational alternative would be to invest the money 50/50 in stocks and bonds the same way the rest of your assets at Vanguard are invested.
by dbr
Thu Aug 04, 2016 10:42 am
Forum: Personal Consumer Issues
Topic: Family Europe Trip
Replies: 31
Views: 1992

Re: Family Europe Trip

PS Yes, the budget is more than adequate unless you blow it somewhere.
by dbr
Thu Aug 04, 2016 10:39 am
Forum: Personal Consumer Issues
Topic: Family Europe Trip
Replies: 31
Views: 1992

Re: Family Europe Trip

I would advise reading books. That can start with "travel" books that illustrate places to go, things to see and do, but it can also include books about the history of those countries or the geography or the food, etc. From that you will perceive ideas for things that you would find intere...
by dbr
Thu Aug 04, 2016 10:31 am
Forum: Investing - Help with Personal Investments
Topic: No faith in stocks/bonds - Where to park cash?
Replies: 38
Views: 3734

Re: No faith in stocks/bonds - Where to park cash?

One should also ask where the rest of the $3M is placed. What is done with $0.6M of it may be no never mind.

Put differently, why would that $0.6M not be invested the same way as the rest of the assets?
by dbr
Thu Aug 04, 2016 10:25 am
Forum: Investing - Help with Personal Investments
Topic: No faith in stocks/bonds - Where to park cash?
Replies: 38
Views: 3734

Re: No faith in stocks/bonds - Where to park cash?

As above, a longer CD. But note that anything that has a negative real return (after inflation) is not growth but shrinkage. If you are willing to lock up the money for ten years or more you can get a positive real rate of return buying TIPS. Why would you expect to have any more faith in either sto...

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