Search found 847 matches

by friar1610
Sat May 20, 2017 2:40 pm
Forum: Investing - Help with Personal Investments
Topic: Vanguard International Bond Admiral (VTABX)
Replies: 6
Views: 698

Re: Vanguard International Bond Admiral (VTABX)

I'm retired and taking RMDs. I personally don't see the need for international bonds. But, if I were to decide to move my IRA to a TR or LS fund that contained them I wouldn't let that fact stop me. My wife and I have relatively modest IRAs (about 25% of total port) that are 1/3 Wellesley and 2/3 To...
by friar1610
Sat May 20, 2017 11:57 am
Forum: Personal Consumer Issues
Topic: Bad experience with 'rescuing' a lost dog
Replies: 38
Views: 3072

Re: Bad experience with 'rescuing' a lost dog

Here's a more positive story... Picked up a stray walking in the middle of the road when I lived in VT and was on my way to church one Sun AM. (I'm a dog owner/lover and was afraid he'd be hit by a car.) He waited in the car during church. When we got home I tried to figure out who owned him. He had...
by friar1610
Thu May 18, 2017 3:33 pm
Forum: Investing - Help with Personal Investments
Topic: At crossroads with Annuity
Replies: 18
Views: 1162

Re: At crossroads with Annuity

One clarification on Friar's good response regarding withdrawals from annuities- -I believe withdrawals from variable annuities are taxed as income first. so the only way you could spread today's $30,000 gain (unless you annuitize) is to take, say, $10,000 per year for the first two years . Then th...
by friar1610
Thu May 18, 2017 3:32 pm
Forum: Investing - Help with Personal Investments
Topic: Just opened CD ladders at Fidelity and Vanguard
Replies: 12
Views: 1557

Re: Just opened CD ladders at Fidelity and Vanguard

Just did a quick check of Navy Federal and PenFed 12 month rates.

NFCU: 1.25% (1.35% if > $100K
PenFed: 1.30
by friar1610
Thu May 18, 2017 11:27 am
Forum: Investing - Help with Personal Investments
Topic: At crossroads with Annuity
Replies: 18
Views: 1162

Re: At crossroads with Annuity

Choices: • Do a 1035 exchange to a lower cost fixed deferred annuity at Vanguard after sales charge period and leave it to annuitize later or sell it after sales charge period (5 years?) is over at lower tax rate. I am puzzled by this statement. Do Vanguard annuities have sales charges? I thought t...
by friar1610
Thu May 18, 2017 11:25 am
Forum: Investing - Help with Personal Investments
Topic: At crossroads with Annuity
Replies: 18
Views: 1162

Re: At crossroads with Annuity

I have a few things in common with your situation. Exceptions are: - spouse and I are older than you two - annuity value is slightly higher - basis is significantly lower - it has always been a "low cost" VA, first with Fido and now with VG If I could walk the dog back, I wouldn't have bou...
by friar1610
Thu May 18, 2017 10:57 am
Forum: Investing - Help with Personal Investments
Topic: RMD start
Replies: 7
Views: 806

Re: RMD start

My wife and I have two funds each (the same ones) in our IRAs. I'm in my 2nd year of RMDs; she's in her first. Like you, we don't need the money for living expenses; we just reinvest it in taxable. We are set up with VG's service so it runs on auto-pilot. The first year I took proportional quarterly...
by friar1610
Tue May 16, 2017 3:44 pm
Forum: Investing - Help with Personal Investments
Topic: Bond funds for IRAs
Replies: 13
Views: 606

Re: Bond funds for IRAs

You're looking at parts your portfolio (IRA, taxable) in isolation rather than as a whole. And that's leading you to move to a more aggressive overall allocation at a time when you're already taking RMDs. Looking forward to the next big drop in equities, you should be more worried about being overw...
by friar1610
Tue May 16, 2017 3:38 pm
Forum: Investing - Help with Personal Investments
Topic: Bond funds for IRAs
Replies: 13
Views: 606

Re: Bond funds for IRAs

"Income" doesn't mean anything to me because one can get "income" from a 100% equity portfolio anyways. Vanguard will send you money every month from an automated monthly withdrawal from something like Vanguard Total Stock Market index fund. One doesn't need bond funds to get in...
by friar1610
Tue May 16, 2017 3:36 pm
Forum: Investing - Help with Personal Investments
Topic: Bond funds for IRAs
Replies: 13
Views: 606

Re: Bond funds for IRAs

I don't understand your theory of why it matters to have equities in the tax deferred. If you run out of money in the IRA first, that means your taxable will have been growing. Point taken. If you put bonds in your taxable instead, you will be less tax efficient while depleting the taxable first. S...
by friar1610
Tue May 16, 2017 11:40 am
Forum: Investing - Help with Personal Investments
Topic: Bond funds for IRAs
Replies: 13
Views: 606

Re: Bond funds for IRAs

I can't believe no one else has apparently noticed that 50% Wellesley Income and 50% Total Bond isn't even remotely 45-50% stocks as the OP said. I can't believe that folks didn't notice that the OP was talking about their ENTIRE portfolio including all those equities in their taxable account. I th...
by friar1610
Tue May 16, 2017 9:49 am
Forum: Investing - Help with Personal Investments
Topic: Bond funds for IRAs
Replies: 13
Views: 606

Re: Bond funds for IRAs

I think you are overthinking myself. I want my tax-deferred accounts to have the lowest gains, so that my RMDs stay as small as possible. I want my overall portfolio to have the highest possible gains. Because we currently just reinvest RMDs into taxable, I feel the same way about gains in tax-defe...
by friar1610
Tue May 16, 2017 9:12 am
Forum: Investing - Help with Personal Investments
Topic: Bond funds for IRAs
Replies: 13
Views: 606

Bond funds for IRAs

My wife and I each have relatively modest IRAs (representing about 25% of our total portfolio) from which we are now taking RMDs. They had traditionally been invested in VG Total Bond Index Admiral (VBTLX) as we were following the "bonds in tax-advantaged" rule. Now that we are taking RMDs...
by friar1610
Sun May 14, 2017 5:43 pm
Forum: Investing - Theory, News & General
Topic: When 60/40 just isn't appropriate
Replies: 182
Views: 25999

Re: When 60/40 just isn't appropriate

I reread this entire thread. (I vaguely remember reading it a couple of years ago.) I found it very interesting with lots to think about. Rick Ferri's 30/70 seems a tad bit conservative for me as a retiree (72 with a spouse 70) although I understand he recommends it as a starting point for discussio...
by friar1610
Sat May 13, 2017 4:38 pm
Forum: Investing - Help with Personal Investments
Topic: Vanguard's safest all-equity fund
Replies: 59
Views: 4855

Re: Vanguard's safest all-equity fund

I haven't gone back and verified every equity fund, but this is my recollection. On the VG web site there is a graphic for each fund that shows the fund's risk on a scale from 1 to 5. If memory serves, all equity funds are listed as 4 or 5. Many balanced funds are 3, most bond funds are 2 and MM fun...
by friar1610
Sat May 13, 2017 3:09 pm
Forum: Investing - Help with Personal Investments
Topic: Newly Disabled and Need Good Advice
Replies: 16
Views: 1629

Re: Newly Disabled and Need Good Advice

This is a shot in the dark, but are you a veteran? Is there any case, no matter how slight, that the disability has any prior service connection?
by friar1610
Fri May 12, 2017 3:21 pm
Forum: Investing - Theory, News & General
Topic: Retirees, what is your marginal tax rate?
Replies: 33
Views: 2852

Re: Retirees, what is your marginal tax rate?

25% in retirement, pretty much as it was when we were both working. (I don't remember for sure but I might have had a few years >25% when working.) On one hand it's very nice to have a good pension. On the other hand it's 100% subject to Fed tax and pushes the percentage of SS subject to tax to 85%....
by friar1610
Fri May 12, 2017 7:14 am
Forum: Investing - Theory, News & General
Topic: Motley Fool - Million Dollar Portfolio
Replies: 8
Views: 2024

Re: Motley Fool - Million Dollar Portfolio

I originally learned about low cost diversified index fund investing from the MF before they changed their business model. Although I was already on my way to becoming a BH investor (without knowing what a BH was) some 20 years ago, I used to follow TMF. I never paid for anything, though. There was...
by friar1610
Tue May 09, 2017 12:32 pm
Forum: Personal Consumer Issues
Topic: End of model year car purchases
Replies: 10
Views: 936

End of model year car purchases

Is there any rule of thumb on how much one can expect to save (percentage-wise off MSRP) when buying a brand new car after the new models come out? That is, a new 2017 after the 2018s have hit the showrooms. It's probably brand-dependent so I'm thinking either a Subaru Outback or a Volvo V-60 wagon ...
by friar1610
Sat May 06, 2017 5:47 pm
Forum: Investing - Theory, News & General
Topic: Tips From Older Bogleheads?
Replies: 52
Views: 4264

Re: Tips From Older Bogleheads?

This experience reinforced the idea that there are always circumstances beyond your control, so when making big financial decisions (e.g., can I afford this house, am I saving too much/too little, is this a good asset allocation, etc.) you can't base them on the status quo - you need to consider po...
by friar1610
Sat May 06, 2017 2:20 pm
Forum: Investing - Help with Personal Investments
Topic: Portfolio Watch Concerns
Replies: 22
Views: 2003

Re: Portfolio Watch Concerns

When people refer to "Morningstar" are they referring to the Portfolio X-Ray tool which requires a Premium (paid) membership? Or does one of their free tools give you the same sort of info as VG's Portfolio Watch? If so, which specific tool?

Thank you.
by friar1610
Fri May 05, 2017 4:41 pm
Forum: Investing - Help with Personal Investments
Topic: Early Retirement Calculus
Replies: 31
Views: 7118

Re: Early Retirement Calculus

How does your wife take working for 10 more years while you are "retired"? Are you going to be the stay at home parent and take care of the house, grocery shopping, clothes, etc? I work outside the home and my wife works inside the home. We don't call her retired. Just as an aside, my wif...
by friar1610
Tue Apr 25, 2017 8:40 pm
Forum: Investing - Theory, News & General
Topic: Vanguard has switched to brokerage only accounts
Replies: 106
Views: 9599

Re: Vanguard has switched to brokerage only accounts

I converted w/in the past calendar year. Conversion was without problems. We (my wife and I) did get 2 2016 statements each for our RMDs (one each from the old mutual fund account and the new brokerage account) but that was only because the transition was mid-year. Next year there will only be one f...
by friar1610
Sun Apr 23, 2017 3:26 pm
Forum: Investing - Theory, News & General
Topic: Is $20K I-Bonds considered cash or bond?
Replies: 62
Views: 4438

Re: Is $20K I-Bonds considered cash or bond?

I consider them as part of my bond allocation. But I also think of them as the "utility infielders" of fixed income. After a year they are liquid and can be a 2nd tier of emergency funds. Thus, like a utility infielder, they can play different positions depending on where they're needed.
by friar1610
Thu Apr 20, 2017 11:47 am
Forum: Investing - Theory, News & General
Topic: Article-Argument against Buffet and Bogle's International Advice
Replies: 36
Views: 4205

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

I personally don't see the value in having 20% of ones portfolio in international stocks. That just feels like too much. But, it seems reasonable to me to have a smaller amount. So, I chose 10% for my total international exposure (VXUS). Will I regret or be glad about that decision 30 years from no...
by friar1610
Thu Apr 20, 2017 11:36 am
Forum: Investing - Theory, News & General
Topic: Larry Swedroe says "Goodbye."
Replies: 336
Views: 36559

Re: Larry Swedroe says "Goodby."

Thank you, Larry, for all your time, effort and help. Fair winds and following seas.
by friar1610
Wed Apr 19, 2017 4:33 pm
Forum: Investing - Theory, News & General
Topic: Article-Argument against Buffet and Bogle's International Advice
Replies: 36
Views: 4205

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

I have a small allocation to international equities because I value the diversification. I also understand and hate that it exposes me to the risk of currency fluctuations on top of the normal market risk that comes from investing in U.S. based companies. That said, I intend to stay the course and ...
by friar1610
Mon Apr 17, 2017 7:05 pm
Forum: Personal Consumer Issues
Topic: Best cruise
Replies: 50
Views: 3854

Re: Best cruise

I would suggest that you first decide what locations you are interested in seeing. Then figure out if those locations are primarily served by ocean or river cruises. (You should also do some research to understand how the two differ from each other.) There are an almost infinite number of possibilit...
by friar1610
Sat Apr 15, 2017 11:23 am
Forum: Investing - Theory, News & General
Topic: Is Bogle's investment style too aggressive?
Replies: 13
Views: 2663

Re: Is Bogle's investment style too aggressive?

I continue to be amazed that there is even a discussion in existence about these things. For detail read the excellent post above by nisi. I basically agree with you, but (1) it can be hard to fight the tendency to overanalyze every portfolio decision even when we know better, and (2) we're all at ...
by friar1610
Sat Apr 08, 2017 5:06 pm
Forum: Personal Finance (Not Investing)
Topic: Social Security at 62 vs 66
Replies: 53
Views: 9225

Re: Social Security at 62 vs 66

In our midsixties and been taking SS since 62....have no regrets. The future is no more guaranteed than the stock market. :thumbsup :thumbsup We took it at 62 (10 years ago for me; a bit less for my wife.) We have mostly saved/invested it. My only regret - and it's not a major one - is that my wife...
by friar1610
Fri Apr 07, 2017 12:49 pm
Forum: Investing - Theory, News & General
Topic: one last stupid question [What are "cash equivalents"?]
Replies: 44
Views: 4232

Re: one last stupid question

Hello, it's me again. I have one last dumb question. I have read to have a certain amount of cash + cash equivalents available at retirement. My question is simply what are cash equivalents. I get cash, I bonds, money market, etc. But are there potential cash equivalents that I should pursue in add...
by friar1610
Wed Apr 05, 2017 3:10 pm
Forum: Investing - Help with Personal Investments
Topic: AA for 529
Replies: 20
Views: 1148

Re: AA for 529

Most 529 providers, VG included, have age-phased 529 plans akin to Target Retirement funds that decrease the equity allocation/increase the bond allocation as the child gets closer to entering college. I use these for my grandkids. Except when I'm writing a check to send in I never even look at them...
by friar1610
Wed Apr 05, 2017 11:08 am
Forum: Investing - Help with Personal Investments
Topic: Lazy and Simple Teacher Portfolio
Replies: 21
Views: 2171

Re: Lazy and Simple Teacher Portfolio

Questions: 1) Any general comments? [color=#8040FF][b]Why in the world would you want to retire so young? You'll be bored stiff, as well as still parenting through the transition of your kids leaving home, and going to college. What a load of codswallop. Granted some people retire and are bored sti...
by friar1610
Tue Apr 04, 2017 11:19 am
Forum: Investing - Theory, News & General
Topic: Foolish question about VT [Vanguard Total World Stock]
Replies: 10
Views: 975

Re: Foolish question about VT

I thought you were going to ask a foolish question about Vermont. Perhaps you should revise your question so you won't attract readers like me. Me too! Without looking at the question, I was coming up with possible answers! "yes, we drink maple sap from the trees" "yes, public nudity...
by friar1610
Fri Mar 31, 2017 7:53 pm
Forum: Investing - Theory, News & General
Topic: Do you use lifestrategy/ asset allocation funds?
Replies: 61
Views: 9157

Re: Do you use lifestrategy/ asset allocation funds?

I did use a Target Retirement fund, but I didn't like how often they changed the allocation. - Tim As if to put an exclamation point on your post... I just got an email from Vanguard today saying that they are "further diversifying" the two Life Strategy clones within the Vanguard Variabl...
by friar1610
Thu Mar 30, 2017 3:41 pm
Forum: Investing - Theory, News & General
Topic: How much international stock? A suggestion.
Replies: 187
Views: 25810

Re: John Bogle on international

I'm in the camp that believes its probably not going to matter that much over a significant period of time (30-40 years) with regards to international as it stands now with the amount of exposure one gets from the S&P or Vanguard Total SM. For some, diversification in it's purest form (US 46%/I...
by friar1610
Thu Mar 30, 2017 11:52 am
Forum: Investing - Theory, News & General
Topic: What was your costliest investment mistake?
Replies: 162
Views: 23362

Re: What was your costliest investment mistake?

Starting my investing career by investing in a front-loaded, high expense mutual fund bought through USPA-IRA (now renamed "First Command".) The fund, a "contractual" one managed by Fidelity, actually performed well, although I would have been so much better off with Vanguard S&a...
by friar1610
Wed Mar 29, 2017 5:43 pm
Forum: Investing - Theory, News & General
Topic: Vanguard Target Date Funds
Replies: 27
Views: 5223

Re: Vanguard Target Date Funds

My wife and I need to have about 20% in our IRAs (from which we are taking RMDs) to maintain our desired overal AA. I keep trying to convince myself to use VG LS Income (20/80) for simplicity's sake and so my wife won't have to mess with it if she's running things om her own in the future. But I kee...
by friar1610
Tue Mar 28, 2017 5:03 pm
Forum: Investing - Help with Personal Investments
Topic: RMD in 2018
Replies: 49
Views: 3299

Re: RMD in 2018

My wife and I have IRAs that are roughly equivalent in size and are fairly modest. I'm in my 2nd year of RMDs; it is her first. - we each take two semi-annual distributions. - they are offset by 3 months. As a result we get one distribution per quarter. - we have VG take out both Fed and state taxes...
by friar1610
Tue Mar 28, 2017 4:05 pm
Forum: Investing - Theory, News & General
Topic: Annuity to defer interest income
Replies: 11
Views: 943

Re: Annuity to defer interest income

Something occurred to me. There is no relatively safe investment vehicle which appreciates with capital gains that are not distributed and pays no interest? Probably not, but I'll throw it out there. Growth stocks may be sorta safe over the long term, but certainly not in the intermediate or short ...
by friar1610
Fri Mar 24, 2017 12:25 pm
Forum: Investing - Theory, News & General
Topic: AA after reaching your "freedom number"?
Replies: 39
Views: 4176

Re: AA after reaching your "freedom number"?

IRT the original question, with a good pension + SS x 2 (essentially providing the "freedom"), we've kept our AA in the 40-50% equity range with about 4-5% cash and the remainder in a combination of Total Bond Index, CDs and I-Bonds. At the moment, equity is at about 45%. I would probably ...
by friar1610
Thu Mar 23, 2017 9:00 pm
Forum: Investing - Theory, News & General
Topic: AA after reaching your "freedom number"?
Replies: 39
Views: 4176

Re: AA after reaching your "freedom number"?

But of course if you went all in for Vanguard's Wellington Income fund you'd be 40/60, but historically you'd only be behind the S&P 500 by about .4% CAGR, but with only a fraction of the volatility. You mean Wellesley Income, right? It was years before I had the two W's straight in my mind.
by friar1610
Thu Mar 23, 2017 7:35 pm
Forum: Investing - Theory, News & General
Topic: How much international stock? A suggestion.
Replies: 187
Views: 25810

Re: How much international stock? A suggestion.

Somewhat germane to this topic... I spent time yesterday cleaning out some old files on my computer and ran across a Vanguard-prepared investment plan/recommendation that had been done for me in 2014 (when I was 69). It recommended a 50/50 equity/bond allocation. The equity recommendation was 40% US...
by friar1610
Thu Mar 16, 2017 4:11 pm
Forum: Investing - Theory, News & General
Topic: 10 Reasons why Merriman dislikes Total Stock Mkt
Replies: 169
Views: 36679

Re: "Predicting the Past"

Can anyone tell (and convince) me which fund is the best? flyingaway: No one can tell you which fund will turn out to be best because no one can predict the future . Lot's of investors try to figure out which fund or funds will beat the market by using figures from past performance or with complex ...
by friar1610
Tue Mar 14, 2017 4:17 pm
Forum: Personal Finance (Not Investing)
Topic: GEICO auto rates vs. USAA: too good to be true?
Replies: 127
Views: 10490

Re: GEICO auto rates vs. USAA: too good to be true?

I have been with USAA for decades and use them for home, auto, valuable personal property, and umbrella liability insurance. I think USAA has different internal insurance companies with different fee structures depending upon your membership type. I was active military and reserve officer. I have t...
by friar1610
Fri Mar 03, 2017 8:21 pm
Forum: Investing - Theory, News & General
Topic: Vanguard and bond recomendations
Replies: 18
Views: 1939

Re: Vanguard and bond recomendations

elgob.bogle wrote:"I believe that the 110 minus age formula yields a suggested stock allocation with the remainder being equities. "

Huh????

elgob



Typing faster than I was thinking. Corrected to read "remainder being in bonds."
by friar1610
Fri Mar 03, 2017 6:42 pm
Forum: Investing - Theory, News & General
Topic: Vanguard and bond recomendations
Replies: 18
Views: 1939

Re: Vanguard and bond recomendations

Not to derail OP's inquiry but, shouldn't majority of investors out there, invest in Vanguard's bond guideline of subtracting your age from 110 to determine amount of bond exposure regardless of market conditions? Do Bogleheads adhere to this recommendation or is it generally ignored? I believe tha...
by friar1610
Fri Mar 03, 2017 4:40 pm
Forum: Investing - Theory, News & General
Topic: Vanguard and bond recomendations
Replies: 18
Views: 1939

Re: Vanguard and bond recomendations

Actually Vanguard has people putting too much in stocks as the overly risky glide path of their target retirement funds has been discussed many times. That does not even mention all the stocks they try to sell people in their many and varied stock funds. They even cuddle up to Buffett by offering a...
by friar1610
Fri Mar 03, 2017 12:02 pm
Forum: Investing - Theory, News & General
Topic: Vanguard and bond recomendations
Replies: 18
Views: 1939

Re: Vanguard and bond recomendations

Actually Vanguard has people putting too much in stocks as the overly risky glide path of their target retirement funds has been discussed many times. That does not even mention all the stocks they try to sell people in their many and varied stock funds. They even cuddle up to Buffett by offering a...
by friar1610
Thu Mar 02, 2017 8:42 pm
Forum: Investing - Theory, News & General
Topic: Treasury Direct - Changing Passwords?
Replies: 2
Views: 364

Re: Treasury Direct - Changing Passwords?

After you log in, go to Manage Direct and click on Change Password. You must follow password requirements such as: Your password must be a minimum of eight (8) characters without spaces. Your password is NOT case-sensitive. Your password must contain at least one letter, one number, and one special...

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