Search found 669 matches

by gilgamesh
Tue May 23, 2017 1:52 pm
Forum: Investing - Theory, News & General
Topic: The Case for Dividend Stocks in Retirement (article)
Replies: 92
Views: 9553

Re: The Case for Dividend Stocks in Retirement (article)

Nedsaid, Are you thinking about SPIAs after age 70 or 75 or maybe a ladder of them? 5.5 or 6.5% payout may lower the pressure on the rest of your portfolio. As an aside: I am going to purchase the following which explores rational vs. "normal" investor's behavior. From reviewing a few cha...
by gilgamesh
Sun May 21, 2017 5:20 am
Forum: Investing - Theory, News & General
Topic: Puzzle for you: Stocks returns vs. Economic Growth
Replies: 36
Views: 2416

Re: Puzzle for you: Stocks returns vs. Economic Growth

AlohaJoe wrote:India, US, China


^ This
by gilgamesh
Sat May 20, 2017 8:49 am
Forum: Investing - Theory, News & General
Topic: LMP-1: P&I article on corporate & public pension plans
Replies: 60
Views: 4296

Re: LMP-1: P&I article on corporate & public pension plans

No tips? BobK LDI duration matches assets to liabilities, and as such eliminates interest rate risks. Does it also consider inflation? P.S: It would of course make sense to consider inflation. However, most of the definitions only talks about interest rate risks and thus my question. I suppose, inf...
by gilgamesh
Fri May 19, 2017 9:56 pm
Forum: Investing - Theory, News & General
Topic: The Case for Dividend Stocks in Retirement (article)
Replies: 92
Views: 9553

Re: The Case for Dividend Stocks in Retirement (article)

My retirement income strategy closely follows Dr. Bernstein's LMP, except dividends don't play a role on building the floor. Mine came from Michael Zwecher's book.
by gilgamesh
Fri May 19, 2017 9:50 pm
Forum: Investing - Theory, News & General
Topic: The Case for Dividend Stocks in Retirement (article)
Replies: 92
Views: 9553

Re: The Case for Dividend Stocks in Retirement (article)

Well if Dr. Bernstein is fooled by the dividend fantasy and so am I, then I am in pretty good company. He is one of the better minds in the investment business. I would rather argue with John Bogle than with Bill Bernstein. It's not Bogle, but kind of close "As a result, Vanguard believes that...
by gilgamesh
Fri May 19, 2017 9:46 pm
Forum: Investing - Theory, News & General
Topic: The Case for Dividend Stocks in Retirement (article)
Replies: 92
Views: 9553

Re: The Case for Dividend Stocks in Retirement (article)

William Bernstein wrote this... 'If you counted on your stock holdings to see you through retirement, you’re likely to be seriously disappointed. Yet, there is a small part of the equity portfolio that can be considered in the funding of retirement: the “safe dividend flow” from stock holdings. Alt...
by gilgamesh
Fri May 19, 2017 9:36 pm
Forum: Investing - Theory, News & General
Topic: The Case for Dividend Stocks in Retirement (article)
Replies: 92
Views: 9553

Re: The Case for Dividend Stocks in Retirement (article)

William Bernstein wrote this... 'If you counted on your stock holdings to see you through retirement, you’re likely to be seriously disappointed. Yet, there is a small part of the equity portfolio that can be considered in the funding of retirement: the “safe dividend flow” from stock holdings. Alth...
by gilgamesh
Fri May 19, 2017 9:07 pm
Forum: Investing - Theory, News & General
Topic: The Case for Dividend Stocks in Retirement (article)
Replies: 92
Views: 9553

Re: The Case for Dividend Stocks in Retirement (article)

I'm losing track of what the real issue is as raised in this thread. About 420 of the companies in the S&P 500 pay dividends. So you are going to get paid dividends if you are a boglehead. That is just a fact of life. If you can buy an S&P fund and live off of the dividends that seems great...
by gilgamesh
Fri May 19, 2017 5:54 am
Forum: Investing - Theory, News & General
Topic: LMP-1: P&I article on corporate & public pension plans
Replies: 60
Views: 4296

Re: LMP-1: P&I article on corporate & public pension plans

Do I do a strict LDI until I amass 70% of my nest egg and then invest in risky assets. This will be right opposite to what many want to do - bonds only, in early accumulation, shifting to stocks closer to retirement. Or, each year investements are made to maintain 70% in LDI and 30% into risky asse...
by gilgamesh
Thu May 18, 2017 6:51 pm
Forum: Investing - Theory, News & General
Topic: LMP-1: P&I article on corporate & public pension plans
Replies: 60
Views: 4296

Re: LMP-1: P&I article on corporate & public pension plans

...An LDI strategy is focused on meeting your financial goal. If you have enough safe assets to meet the goal, but have additional space in the portfolio, you can invest that additional portion of the portfolio in risky assets to better the goal. For instance, the goal might simply be a floor level...
by gilgamesh
Thu May 18, 2017 9:36 am
Forum: Investing - Theory, News & General
Topic: LMP-1: P&I article on corporate & public pension plans
Replies: 60
Views: 4296

Re: LMP-1: P&I article on corporate & public pension plans

A definition of Liability Driven Investing (LDI) LDI strategies are goal based investment strategies that seek to maximize the probability of reaching a financial goal. Often an LDI strategy is implemented by focusing on duration matching assets to future liabilities. Bob, in a LDI, once you start ...
by gilgamesh
Thu May 18, 2017 5:00 am
Forum: Investing - Theory, News & General
Topic: LMP-1: P&I article on corporate & public pension plans
Replies: 60
Views: 4296

Re: LMP-1: P&I article on corporate & public pension plans

Hi Angst, Liability driven investing (LDI) is an investment strategy - not a portfolio. If you have an investment strategy that is matching at least some assets to some liabilities, then you have some form of an LDI. LDI strategies do not have to match all liabilities to assets. However, you have o...
by gilgamesh
Wed May 17, 2017 7:47 pm
Forum: Personal Finance (Not Investing)
Topic: How Old Habits Can Sabotage Retirement
Replies: 51
Views: 7047

Re: How Old Habits Can Sabotage Retirement

...I could have a $100 or $200 dinner, but I do not get the same total enjoyment compared to a really good $20-$40 dinner. I consider value a part of enjoyment. I tend to agree. Plus you could do a dozen of those dinners over the course of a month for a lot less cost... And I can make a $20-$40 din...
by gilgamesh
Wed May 17, 2017 6:25 pm
Forum: Investing - Theory, News & General
Topic: LMP-1: P&I article on corporate & public pension plans
Replies: 60
Views: 4296

Re: LMP-1: P&I article on corporate & public pension plans

Hi gilgamesh, With regard to retirement planning and human capital keep in mind that the relevant human capital for retirement planning is the PV of your future contributions to your retirement, i.e. the PV of future retirement savings. What's important in considering human capital is the ratio of ...
by gilgamesh
Wed May 17, 2017 6:03 pm
Forum: Investing - Theory, News & General
Topic: LMP-1: P&I article on corporate & public pension plans
Replies: 60
Views: 4296

Re: LMP-1: P&I article on corporate & public pension plans

Hi gilgamesh, The thread on LDI and interest rate matching started by Bob is what drew me to this forum. This is the thread https://www.bogleheads.org/forum/viewtopic.php?f=10&t=174991&p=2645226&hilit=LDI+LMP+STRATEGY#p2645226 I have to say I don't fully understand it :D ... It is not b...
by gilgamesh
Wed May 17, 2017 4:42 am
Forum: Investing - Help with Personal Investments
Topic: Any Restrictions on a new, first time Roth account? - Not the 5 yr restrictions
Replies: 3
Views: 311

Re: Any Restrictions on a new Roth account?

-I got the details wrong, listen to Phineas J. Whoopee Thanks for bringing up the 5 year rules, I was aware of them. Those are not it...I've edited the post to reflect that. This applies to the first Roth account you open. I think it may not even have any funds in it. So, your first account has to ...
by gilgamesh
Tue May 16, 2017 7:13 pm
Forum: Investing - Help with Personal Investments
Topic: Any Restrictions on a new, first time Roth account? - Not the 5 yr restrictions
Replies: 3
Views: 311

Any Restrictions on a new, first time Roth account? - Not the 5 yr restrictions

I read here somewhere a Roth account needed to have been opened a specified amount of time prior to doing something. It could be back door Roth or Roth conversion or something else. Can anyone shed some light on what requires a Roth account to have been opened a few months/years prior to doing it? E...
by gilgamesh
Tue May 16, 2017 4:39 pm
Forum: Personal Finance (Not Investing)
Topic: How Old Habits Can Sabotage Retirement
Replies: 51
Views: 7047

Re: How Old Habits Can Sabotage Retirement

Now, after that, what do you do with the money....will hoarding millions and seeing it grow bring you more happiness, or spending it on material things you enjoy bring you more happiness. That's the question. Neither! absolutely....I was using hyperbole there...it meant to convey saving vs spending...
by gilgamesh
Tue May 16, 2017 8:04 am
Forum: Personal Finance (Not Investing)
Topic: How Old Habits Can Sabotage Retirement
Replies: 51
Views: 7047

Re: How Old Habits Can Sabotage Retirement

It's just money. The article is based on the ridiculous premise that by spending more money, one is somehow happier. So if the retired frugal wealthy boglehead isn't spending money on better food cars vacations etc., that that means one is sadder. I'd like to think the reason bogleheads become weal...
by gilgamesh
Tue May 16, 2017 7:54 am
Forum: Investing - Help with Personal Investments
Topic: Has anyone sold TIPS prior to maturity
Replies: 21
Views: 1194

Re: Has anyone sold TIPS prior to maturity

Not sure what is meant by full liquidity here. TIPs have had some liquidity problems at various times in the past. Aside from the issues in 2008 when Lehman went under, when were these? (Not being argumentative--I actually just didn't realize there was more than 1 situation). See chart 1 of this do...
by gilgamesh
Tue May 16, 2017 7:35 am
Forum: Investing - Help with Personal Investments
Topic: Has anyone sold TIPS prior to maturity
Replies: 21
Views: 1194

Re: Has anyone sold TIPS prior to maturity

Whenever one buys a TIPS (or any other bond), the YTM represents the return one will get if one holds the bond until maturity (and of course if it doesn't default). But if one sells the bond before maturity, one's return may be more or less than the YTM at the time it was purchased. Say a 5 year TI...
by gilgamesh
Tue May 16, 2017 6:56 am
Forum: Investing - Help with Personal Investments
Topic: Has anyone sold TIPS prior to maturity
Replies: 21
Views: 1194

Re: Has anyone sold TIPS prior to maturity

Theoretically they have full liquidity, but has anyone actually done this...sell TIPS they bought in the secondary market. Not sure what is meant by full liquidity here. TIPs have had some liquidity problems at various times in the past. Can sell it at anytime for a fair price. Not discounted by mu...
by gilgamesh
Tue May 16, 2017 6:53 am
Forum: Investing - Help with Personal Investments
Topic: Has anyone sold TIPS prior to maturity
Replies: 21
Views: 1194

Re: Has anyone sold TIPS prior to maturity

We bought a slug of Tips in October 2008. The real rate was around 3%. At some point, the rate dropped below 1% and I sold about half the holding for a large gain. I thought the real rate of a TIPS was fixed for the life of the bond. Am I confused and/or misinformed? --vtMaps It is, however the rat...
by gilgamesh
Mon May 15, 2017 7:19 pm
Forum: Investing - Help with Personal Investments
Topic: Has anyone sold TIPS prior to maturity
Replies: 21
Views: 1194

Re: Has anyone sold TIPS prior to maturity

jebmke wrote:Absolutely yes. We bought a slug of Tips in October 2008. The real rate was around 3%. At some point, the rate dropped below 1% and I sold about half the holding for a large gain.

I don't recall having any issue immediately selling the lots we sold off.


3%, nice!!...thanks for the response.
by gilgamesh
Mon May 15, 2017 6:22 am
Forum: Investing - Help with Personal Investments
Topic: Has anyone sold TIPS prior to maturity
Replies: 21
Views: 1194

Re: Has anyone sold TIPS prior to maturity

I have sold TIPS prior to maturity on several occasions, at Fidelity and at Vanguard The most recent was a liquidation of my whole portfolio of a over a dozen, in order to exchange them for the Vanguard TIPS fund. Intellectually I thought and think that there is a small advantage to holding the ind...
by gilgamesh
Mon May 15, 2017 6:19 am
Forum: Investing - Help with Personal Investments
Topic: Has anyone sold TIPS prior to maturity
Replies: 21
Views: 1194

Re: Has anyone sold TIPS prior to maturity

Phineas J. Whoopee wrote:Treasury Direct no longer offers the Sell Direct service. You would have to move your TIPS held there to a broker, in a process initiated by that broker, then sell them.
PJW


Thanks, good to know
by gilgamesh
Sun May 14, 2017 6:11 pm
Forum: Investing - Help with Personal Investments
Topic: Has anyone sold TIPS prior to maturity
Replies: 21
Views: 1194

Re: Has anyone sold TIPS prior to maturity

Yes, the process was very easy and quick. Received multiple offers within 15 minutes. Wow! Didn't think Ill find anyone. I have the book on TIPS, 'Explore TIPS'...that's good to know you were able to sell it. 'Did you sell via 'sell direct' through treasury direct? Or through brokerage firm? Throug...
by gilgamesh
Sun May 14, 2017 5:13 pm
Forum: Investing - Help with Personal Investments
Topic: Has anyone sold TIPS prior to maturity
Replies: 21
Views: 1194

Has anyone sold TIPS prior to maturity

Theoretically they have full liquidity, but has anyone actually done this...sell TIPS they bought in the secondary market.

Thank you!
by gilgamesh
Sun May 14, 2017 3:40 pm
Forum: Investing - Theory, News & General
Topic: LMP-3: Roll your own pension- Build a tips ladder!
Replies: 38
Views: 3492

Re: LMP-3: Roll your own pension- Build a tips ladder!

... each maturing tranche of the laddered portfolio would provide the same purchasing power of a real USD 10,000 . So, the deposit amounts have to vary over the years based on the buying power of the initial $5k at age 25, on each of the subsequent years, to keep the purchasing power equal to $10k ...
by gilgamesh
Sun May 14, 2017 3:32 pm
Forum: Investing - Theory, News & General
Topic: LMP-1: P&I article on corporate & public pension plans
Replies: 60
Views: 4296

Re: LMP-1: P&I article on corporate & public pension plans

my approach is a little different: 3) Start buying 30 year tips at age 35 and keep buying them every year up until age 65 (i.e. standard retirement age) 4) live off the ladder and other investments from age 65 to 70. 5) start taking Social Security at age 70 (to maximize the amount of inflation pro...
by gilgamesh
Sun May 14, 2017 3:08 pm
Forum: Investing - Theory, News & General
Topic: LMP-1: P&I article on corporate & public pension plans
Replies: 60
Views: 4296

Re: LMP-1: P&I article on corporate & public pension plans

This is my TIPS ladder for someone retiring in the year 2030 at age 60. This provides TIPS 'pension' up to age 80. Then SPIA are purchased every 5 years with maturing TIPS until age 95. From age 80 on, the mortality credit should be high enough for an SPIA to be a better option than continuing a TI...
by gilgamesh
Sun May 14, 2017 7:58 am
Forum: Personal Finance (Not Investing)
Topic: How Old Habits Can Sabotage Retirement
Replies: 51
Views: 7047

Re: How Old Habits Can Sabotage Retirement

Thank you for the article, I enjoyed it immensely....of course because I agree with it :D I don't have problems with spending. The first book on investing I read in college in Canada is the wealthy barber. It instilled a lot of great ideas, but mentioned a balanced life. I spend more than what's rec...
by gilgamesh
Sun May 14, 2017 7:12 am
Forum: Investing - Theory, News & General
Topic: Larry Swedroe Article On Enhancing Momentum Strategies
Replies: 60
Views: 5514

Re: Larry Swedroe Article On Enhancing Momentum Strategies

Bogleheads: It is always tempting to invest in complex strategies designed to "beat the market." In my opinion, " Momentum " is one of these strategies designed to benefit the seller more than the buyer. The AQR Large Cap Momentum Style Fund (AMOMX), was designed and is now mana...
by gilgamesh
Sun May 14, 2017 5:31 am
Forum: Investing - Theory, News & General
Topic: LMP-1: P&I article on corporate & public pension plans
Replies: 60
Views: 4296

Re: LMP-1: P&I article on corporate & public pension plans

This is my variation of what's being discussed in the LMP series of articles, because of early retirement (pre-SS) and my 'TIPS pension' along with SS having to cover 70-80% of my retirement income. When such large bond allocation is required, the following matters. WARNING: I AM NOT AN EXPERT. Corp...
by gilgamesh
Sat May 13, 2017 10:16 pm
Forum: Investing - Theory, News & General
Topic: LMP-3: Roll your own pension- Build a tips ladder!
Replies: 38
Views: 3492

Re: LMP-3: Roll your own pension- Build a tips ladder!

'Thus, for Alice, her TreasuryDirect account would be a cost-effective investment account to accumulate TIPS. From age 25 to 34, at a relatively modest salary, Alice would buy the 10-year TIPS, at USD 5,000 a year. From age 35 to 44, as her compensation grew, she would roll over the maturing 10-yea...
by gilgamesh
Sat May 13, 2017 5:46 am
Forum: Investing - Theory, News & General
Topic: Single most important investing advice?
Replies: 96
Views: 10935

Re: Single most important investing advice?

Investing - low cost and diversification
Saving - pay yourself first
Transition to retirement - utility of wealth
by gilgamesh
Sun May 07, 2017 8:55 am
Forum: Personal Finance (Not Investing)
Topic: Retired - How much can I afford to pay for house
Replies: 12
Views: 1686

Re: Retired - How much can I afford to pay for house

On the surface this might seem like a simplistic question. However I have always had trouble spending money (my wife calls me 'cheap' :-) ). I am trying hard to overcome my stinginess. So, I think we could safely spend up to 8%-10% of portfolio on a new house. Note that we would not finance but wou...
by gilgamesh
Thu May 04, 2017 5:30 am
Forum: Personal Finance (Not Investing)
Topic: Buying a luxury car (how dumb would it be to do this?)
Replies: 215
Views: 17069

Re: Buying a luxury car (how dumb would it be to do this?)

I’d prefer a 3 series, but I have kids with lots of stuff. You have options: 3 series wagon, or if that's small, 5 series wagon. If you still need space, roof box. Edit: You have 4-kids... never mind my wagon suggestion. You should get a van probably. I've already got a minivan, so this'll be a sec...
by gilgamesh
Mon May 01, 2017 9:42 am
Forum: Personal Finance (Not Investing)
Topic: If I delay SS to age 70, could spousal benefit start earlier?
Replies: 22
Views: 2258

Re: If I delay SS to age 70, could spousal benefit start earlier?

But, even if the amounts are not this far apart. My wife should always file her SS ar FRA, even if I delay mine till 70, as when she applies for spousal benefit she will lose zero, right? Correct, no impact in spousal benefit after FRA (of course when she takes her benefit will affect the size of h...
by gilgamesh
Sun Apr 30, 2017 3:21 pm
Forum: Personal Finance (Not Investing)
Topic: If I delay SS to age 70, could spousal benefit start earlier?
Replies: 22
Views: 2258

Re: If I delay SS to age 70, could spousal benefit start earlier?

So, could she get her own at 62 and then piggy back with me when I apply? Yes, but if she applies before FRA then her (small) individual benefit will be reduced and also her spousal benefit. The spousal benefit is reduced by the same dollars (not percentage) as the individual benefit. The survivor'...
by gilgamesh
Sun Apr 30, 2017 10:35 am
Forum: Personal Finance (Not Investing)
Topic: If I delay SS to age 70, could spousal benefit start earlier?
Replies: 22
Views: 2258

Re: If I delay SS to age 70, could spousal benefit start earlier?

So, could she get her own at 62 and then piggy back with me when I apply? Yes, but if she applies before FRA then her (small) individual benefit will be reduced and also her spousal benefit. The spousal benefit is reduced by the same dollars (not percentage) as the individual benefit. The survivor'...
by gilgamesh
Sun Apr 30, 2017 10:29 am
Forum: Personal Finance (Not Investing)
Topic: If I delay SS to age 70, could spousal benefit start earlier?
Replies: 22
Views: 2258

Re: If I delay SS to age 70, could spousal benefit start earlier?

My wife waits till FRA and files her own, I am older so I can apply for spousal benefit. Then at age 70 switch to my own and have my wife apply for spousal benefit. If this is allowed, then there's nothing to lose, correct? You can not do this if you were born after January 1, 1954. https://www.ssa...
by gilgamesh
Sun Apr 30, 2017 7:53 am
Forum: Personal Finance (Not Investing)
Topic: If I delay SS to age 70, could spousal benefit start earlier?
Replies: 22
Views: 2258

Re: If I delay SS to age 70, could spousal benefit start earlier?

Is this possible? My wife applies for her own SS at age 62. I wait till FRA and apply for half of her benefit (So, I am an applying for spousal benefit). Then I apply for my own SS at age 70 (The spousal benefit I was receiving will of course stop) and have my wife receive half of my benefit of wha...
by gilgamesh
Sun Apr 30, 2017 7:46 am
Forum: Personal Finance (Not Investing)
Topic: If I delay SS to age 70, could spousal benefit start earlier?
Replies: 22
Views: 2258

Re: If I delay SS to age 70, could spousal benefit start earlier?

So, could she get her own at 62 and then piggy back with me when I apply? Yes, but if she applies before FRA then her (small) individual benefit will be reduced and also her spousal benefit. The spousal benefit is reduced by the same dollars (not percentage) as the individual benefit. The survivor'...
by gilgamesh
Sun Apr 30, 2017 7:11 am
Forum: Personal Finance (Not Investing)
Topic: If I delay SS to age 70, could spousal benefit start earlier?
Replies: 22
Views: 2258

Re: If I delay SS to age 70, could spousal benefit start earlier?

Is this possible? My wife applies for her own SS at age 62. I wait till FRA and apply for half of her benefit (So, I am applying for spousal benefit). Then I apply for my own SS at age 70 (The spousal benefit I was receiving will of course stop) and have my wife receive half of my benefit of what mi...

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