Search found 157 matches

by zengolf2011
Mon Feb 15, 2021 12:56 pm
Forum: Personal Investments
Topic: Optionality in Bond Durations for Planned Withdrawals?
Replies: 1
Views: 285

Optionality in Bond Durations for Planned Withdrawals?

Do you see value in holding different duration bond funds to provide options for planned withdrawals? I'm thinking specifically about funds in locations that I plan to withdraw from within three years or so, e.g., IRAs with RMDs or a taxable account dedicated to a specific purpose like buying a new car in three or four years. My core fixed income investment is VBTLX (total bond fund, six-year average duration), but I keep three years worth of withdrawals VBIRX (short-term bonds, average duration just below three years. I always withdraw from better performing assets. Does holding two bond funds make sense for this purpose, or am I just costing myself better performance over the long-haul? Thanks for any help!
by zengolf2011
Sun Feb 14, 2021 12:30 pm
Forum: Personal Investments
Topic: Recouping lost time in investing, possible?
Replies: 32
Views: 4185

Re: Recouping lost time in investing, possible?

Inspired by a Reddit thread https://www.reddit.com/r/ETFs/comments/lhjlgy/a_thoroughly_confused_late_starter_advice/ that very closely matches my situation. The difference is I am a couple of years younger and following Boglehead's lazy portfolio. I have VTSAX, VXUS, and BND in a 60-30-10 ratio. While everything that is invested doing alright since my investment, I have been thinking about the same, is there any way that I can recoup my lost time by taking more risk? I have 23K that I would like to invest but with the market running high, I am sitting on the side. So just as the poster of the Reddit thread, I am confused on my way ahead. What advice/suggestions you folks have for me? Thank you for your comments. Feel free to admonish if I ...
by zengolf2011
Mon Feb 08, 2021 4:59 pm
Forum: Personal Finance (Not Investing)
Topic: Buying a house directly from a developer with no buyer’s agent
Replies: 25
Views: 2821

Re: Buying a house directly from a developer with no buyer’s agent

It is good to have a home inspector inspect the house at various stages of construction so that needs to be in the contract. It is essential to have a qualified professional inspection. Not all builders may be willing to submit to inspections before construction is completed (one reason some builders won't accept VA financing). I bought a home from a large, respected nationwide developer six years ago, and learned that this builder (probably not only this builder) left it to the buyer to find deficiencies after closing. The practice was to build to the lowest standard, and leave it to each individual buyer to discover the defects. The builder corrected the defects, but only at the insistence of a buyer armed with a highly professional insp...
by zengolf2011
Tue Feb 02, 2021 4:52 pm
Forum: Personal Investments
Topic: Second Homes and Asset Allocation
Replies: 5
Views: 990

Re: Second Homes and Asset Allocation

I don’t “need” the second vacation property. I could sell it if my circumstances dictate. The sale proceeds alone could satisfy 4 or 5 years of expected spending in retirement.
I think you answered your own question. FWIW, I view a second home as an asset that could be liquidated by a surviving spouse (reduced to a single income) if the need should ever arise. That is very improbable. Still, there may come a time when we simply don't want two homes anymore.

I don't include either home value in my financial planning because, at present, I would be very reluctant to sell.
by zengolf2011
Tue Dec 01, 2020 2:48 pm
Forum: Investing - Theory, News & General
Topic: How do you define "asset", "investment", and "speculation"?
Replies: 63
Views: 4277

Re: How do you define "asset", "investment", and "speculation"?

I use these definitions: Asset : anything that confers benefit or value. E.g., my golf clubs may not have resale value but do confer a benefit and therefore provide value to me (sometimes). Assets may be liquid (easily converted to cash) or illiquid (difficult or impossible to convert to cash). Under this definition, a loan or line of credit is an asset. My debt is a liability to me and an asset to my lender. Investment : an asset with an internal rate of return. E.g., dividend paying stocks, interest-paying bonds, some patents and intellectual property, or income-producing real estate are assets with an internal rate of return. Speculation : an asset with no internal rate of return. E.g., stock that doesn't pay dividends, art, antiques, a ...
by zengolf2011
Wed Nov 11, 2020 8:07 pm
Forum: Investing - Theory, News & General
Topic: Taylor Sends His Best to Fellow Bogleheads
Replies: 334
Views: 34149

Re: Taylor Sends His Best to Fellow Bogleheads

Taylor, best wishes. You have done so much for many, and continue to do so. Though we have never met, few days go by that you are not in my thoughts. You are my friend.
by zengolf2011
Tue Nov 10, 2020 8:30 am
Forum: Investing - Theory, News & General
Topic: How on earth can overweighting US stock over international stock possibly be considered Boglehead?
Replies: 253
Views: 19925

Re: How on earth can overweighting US stock over international stock possibly be considered Boglehead?

Large U.S.-domiciled corporations are global enterprises. Mr. Bogle never advocated not investing internationally. He did believe that large-cap U.S. stocks provide exposure to foreign economies with less risk than investing in foreign-domiciled corporations. At least, this is my reading.
by zengolf2011
Fri Nov 06, 2020 6:57 am
Forum: Personal Finance (Not Investing)
Topic: No RMD required this year
Replies: 39
Views: 3662

Re: No RMD required this year

Just to help avoid further confusion, it's worth noting that IRAs inherited by spouses are not affected by the ten-year drawdown rule.
by zengolf2011
Sat Sep 05, 2020 6:06 pm
Forum: Personal Consumer Issues
Topic: Phoenix homes - backyard south facing okay?
Replies: 24
Views: 4765

Re: Phoenix homes - backyard south facing okay?

I live in western Maricopa County. I recommend having two patios, one for summer when you want shade most of the day (especially in the afternoon) and one for winter when morning sun is pleasant. This means you're probably looking for a northernish-facing summer patio and easternish-facing winter patio. The winter (and/or summer, for that matter) patio need not be large. It's not hard to find homes with two patio areas here, especially in newer developments. Another thing to consider is that the sun is much lower in the sky during winter, so it can be hard to visualize what will be sunny or shady in a different season. Would really help to talk to some neighbors once you settle on a neighborhood. Edit: Also, you can often achieve satisfacto...
by zengolf2011
Tue Aug 04, 2020 12:05 pm
Forum: Non-US Investing
Topic: Do you include your house in your portfolio?
Replies: 36
Views: 4589

Re: Do you include your house in your portfolio?

Like many here, I count my net home equity (after selling expenses) as an asset, but not a factor in investment allocation. I view it as a potential resource for assisted living expenses for a surviving spouse.
by zengolf2011
Fri Jul 24, 2020 4:19 pm
Forum: Investing - Theory, News & General
Topic: Your thoughts on negative interest rates
Replies: 162
Views: 8239

Re: Your thoughts on negative interest rates

I am not going to worry about it. For the bond fund I own (VBTLX), I will keep it and not do anything. Its NAV will continue to increase in a negative interest rate environment. I don't care about what it yields, I care only about its total return. Me too. There's a seemingly endless but informative stream of posts on this forum on bonds, negative rates, and yields -- many written by professional investors with impressive banks of knowledge. Not me. I'm a simple guy in mid-retirement trying to make our money last. The "simple" part is why I'm a Boglehead. Like most on this forum, I've tried hard to learn about investing since starting with zero knowledge when I first dipped my toe into investing 35 years ago. The most useful wisd...
by zengolf2011
Sun Apr 19, 2020 3:50 pm
Forum: Personal Investments
Topic: I'm out [of the market]
Replies: 109
Views: 13894

Re: I'm out [of the market]

OP, thanks for sharing your thoughts and rationale. I've chosen a different course. But I agree with you, willthrill81 and others that there's still lots that could go wrong, with much potential long-term impact. Posts on our recent situation sometimes remind me of Sheepdog's heartfelt post started during the last financial crisis. I think today's situation is much different, but people's responses may be similar.
by zengolf2011
Sun Apr 19, 2020 3:38 pm
Forum: Personal Investments
Topic: I'm out [of the market]
Replies: 109
Views: 13894

Re: I'm out [of the market]

striker79 wrote: Sun Apr 19, 2020 2:19 pm You guys are bailing even though you know the FED is ready for stimulus projects 2, 3, 4, 5....1000 or whatever it takes?
Guess I'm old fashioned in believing that printing of money without limit will not be without consequence.
by zengolf2011
Sun Apr 19, 2020 3:30 pm
Forum: Personal Investments
Topic: Who's Staying the Course?
Replies: 2
Views: 516

Re: Who's Staying the Course?

Sounds like prudent decisions. I wish you luck! Our country depends on hardworking, productive folks like you.
by zengolf2011
Sun Apr 19, 2020 3:07 pm
Forum: Personal Investments
Topic: Who's Staying the Course?
Replies: 2
Views: 516

Who's Staying the Course?

Are sticking with your plan entering this year, or adapting to the new situation? Though fearful, we're sticking with ours -- based not on optimism or confidence, but humility. We feel especially ill-equipped to make better decisions in the face of such uncertainty without precedent in our lifetimes. The only actions we plan are to forego the year's RMDs (which federal policy just made easier) and rebalance in November. Both are elements of our long-standing plan. Our situation: early 70's, retired 12 years, 3-fund portfolio with 40% equities target (currently 35% actual), plus a 5-yr reserve in short-term bond fund. We are fortunate to have adequate annuitized incomes (Social Security and pensions) that exceed expenses. (No humble-bragging...
by zengolf2011
Sat Mar 14, 2020 11:02 am
Forum: Personal Investments
Topic: Who is staying course and how are you dealing with net worth going down?
Replies: 359
Views: 33479

Re: Who is staying course and how are you dealing with net worth going down?

Mel Lindauer wrote: Thu Mar 12, 2020 10:39 am Been through this several times before. The main thing to remember is that the only two days that matter are the day you buy and the day you sell. Everything in between is merely noise.

The way to financial freedom is to buy low and sell high; not the opposite.
Great succinct reminder. Stock is a ten-year investment. Obsession over current values is irrational, counterproductive, and would not make me a better investor.
by zengolf2011
Fri Mar 06, 2020 3:50 pm
Forum: Personal Investments
Topic: Parents retiring with $500k saved - Things look OK?
Replies: 83
Views: 11140

Re: Parents retiring with $500k saved - Things look OK?

Since mental competence is not an issue, all the decisions are theirs to make. If you believe this and express it to them, they may be more open to a POA, which is usually a good idea. Re. assets and financial planning, they should be OK at least for a few years. They may decide to downsize after settling into retirement, but there's nothing wrong with staying put as long as they can afford it. IMHO, a financial advisor is usually not the answer. If they are disinterested in financial planning themselves, they could easily be taken advantage of. A better solution could be a low-cost Vanguard life strategy or target date fund. Perhaps you could gently educate them if they're not familiar with these. But, as long as they are mentally competen...
by zengolf2011
Fri Mar 06, 2020 3:13 pm
Forum: Personal Consumer Issues
Topic: Retirement in AZ-suggestions please
Replies: 104
Views: 9691

Re: Retirement in AZ-suggestions please

cookymonster gave you good advice. Highs in Scottsdale reach over 100 degrees. Flagstaff, Prescott, Chino Valley, Sedona, and Sierra Vista would all be possibilities.
by zengolf2011
Sat Jan 11, 2020 1:32 pm
Forum: Personal Finance (Not Investing)
Topic: [RMD shortfall - issue fixed]
Replies: 17
Views: 2696

Re: Vanguard another RMD snafu

Admittedly, my situation was different than yours. I made a mistake myself in withdrawing last year's RMDs (which, as mentioned previously, need not be characterized specifically at RMDs). Totally my fault -- I made a mistake by withdrawing more than intended, rather than the Vanguard-calculated RMD, which was correct. At any rate, I contacted Vanguard, was referred to an RMD specialist. He cautioned me that it would take a few days to fix my goof (which is a very good reason not to wait til the waning days of the year to take RMDs). At any rate, he was able to reverse my mistaken transaction and execute the proper one, explaining that you could only do this once a year. Just wanted to add this to defend my 25 years of excellent satisfactio...
by zengolf2011
Fri Dec 27, 2019 11:27 am
Forum: Personal Consumer Issues
Topic: Anti Virus?
Replies: 36
Views: 2814

Re: Anti Virus?

Jeff Albertson wrote: Thu Dec 26, 2019 9:41 pm You might get more useful information from web sites that know something about computer security. Web sites like pcmag.com review this type of software annually. The product review website, thewirecutter.com, also has a pretty good review:
https://thewirecutter.com/blog/best-antivirus/
&
https://thewirecutter.com/blog/internet ... ty-layers/
Thanks for the link, Mr. Albertson. I found it pretty convincing. I'll probably go with their recommendations when my McAfee subscription expires.
by zengolf2011
Thu Dec 26, 2019 1:33 pm
Forum: Personal Consumer Issues
Topic: Anti Virus?
Replies: 36
Views: 2814

Re: Anti Virus?

I have used McAfee for both laptop and cell phone for years without problems. I have no idea whether it's better, worse, or the same as Microsoft Defender. Maybe I'm wasting money on it, but it's a lot cheaper than buying new devices. I would consider using only Defender if I had an authoritative answer as to whether it's as good as or equal to McAfee. Also, I'm very careful about the websites I visit and e-mails I open.
by zengolf2011
Sat Dec 21, 2019 11:39 am
Forum: Investing - Theory, News & General
Topic: Tax Law Changes for 2020
Replies: 355
Views: 33264

Re: Tax Law Changes for 2020

Does anyone know yet if the RMD change only affects those turning 70-1/2 in 2020 and after? I apologize if this has been addressed already, but I didn't notice it. If someone turned 70-1/2 in 2019, can they skip their 2020 RMD and resume in 2021 (probably can guess the answer). Also, do the RMD withdrawal rates remain the same? Thanks!
by zengolf2011
Sun Dec 01, 2019 8:24 am
Forum: Investing - Theory, News & General
Topic: How to define enough?
Replies: 73
Views: 12301

Re: How to define enough?

I'm surprised that here on the Bogleheads forum, no one has mentioned John Bogle's excellent book, Enough. It does not provide a magic formula. It does provide a frame of reference, a philosophy of life and values, which is the essential first step. I loved it, and loved Mr. Bogle more for writing it. Highly recommended!
by zengolf2011
Fri Nov 15, 2019 7:15 pm
Forum: Investing - Theory, News & General
Topic: Preparing for a down market
Replies: 81
Views: 9343

Re: Preparing for a down market

Like livesoft, I keep a substantial allocation in bonds -- intermediate-term bonds for me. Like retired@50, I keep two years of expenses in cash equivalents. But I also keep three years of expenses in short-term bonds, as recommended by Jane Bryant Quinn. I'm in the decumulation phase, so sequence of returns risk is a big concern. I imagine Taylor's quote is true, but knowing I can weather a five-year bear market greatly improves my sleep and personal ability to stick with my plan.
by zengolf2011
Mon Nov 04, 2019 7:52 pm
Forum: Personal Consumer Issues
Topic: Wife's car hit in a parking lot - how to deal with various issues?
Replies: 67
Views: 7246

Re: Wife's car hit in a parking lot - how to deal with various issues?

This is an absolute no-brainer (now that I have done the no-brainer mistake). Our car was rear-ended while sitting at a red light. The guy who hit us (quite elderly, nice fellow) begged us not to report it to insurance, begged us to let him pay for it. Took it to a body shop and got a quote. He blanched at the amount, and asked us to take it to another shop. Went to two more (with him along), still the quotes didn't satisfy him. Then took it to the shop he finally requested, and he still wouldn't accept their estimate. They knew the guy when we went there together...turns out he was a regular because this happened to him often. Even though he was a regular customer, they weren't the least bit sympathetic to him. They were on to his game. I ...
by zengolf2011
Tue Oct 15, 2019 9:44 am
Forum: Personal Consumer Issues
Topic: Invited to join HOA board. Pros/cons?
Replies: 98
Views: 15855

Re: Invited to join HOA board. Pros/cons?

My advice is to RUN, RUN, AS FAST AS YOU CAN. I'm afraid your advice is right on the mark. Your experiences mirror my two terms as board president. You will see humanity at its most tawdry, both in the behavior of your neighbors and fellow board members. That said, I don't share your dim view of communities with HOAs. I look for a community with sensible rules that protect quality of life and property values. I guess that can lead to a dilemma. If you want these qualities and your current board isn't providing them, you face the decision of whether to run for the board to change things. But, be warned, it will exact a personal toll. The key is to perform due diligence and select a great community in the first place. Then, I guess, hope for...
by zengolf2011
Fri Oct 11, 2019 1:32 pm
Forum: Personal Finance (Not Investing)
Topic: What’s the proper way to pay yourself in retirement?
Replies: 66
Views: 10359

Re: What’s the proper way to pay yourself in retirement?

This is an overview of methods documented by Bogleheads: https://www.bogleheads.org/wiki/Withdrawal_methods As you've noted, there is much more information and research on the accumulation of wealth than there is on the withdrawal phase. Book recommendations (these are just the ones I've read recently): "How Much Can I Spend in Retirement?" by Wade Pfau The Boglehead's Guide to Retirement Planning, by Taylor Larimore, Mel Lindauer, et al. My suggestion -- rewrite your Investor's Policy Statement specifically to address your withdrawal phase. By the time you reach this level, your accumulation IPS has been incorporated into your financial DNA and you are used to your balance constantly climbing. Seeing your balance shrink will be ...
by zengolf2011
Mon Sep 09, 2019 5:44 pm
Forum: Investing - Theory, News & General
Topic: Wade Pfau: Does The 4% Rule Work In Today’s Markets?
Replies: 149
Views: 14990

Re: Wade Pfau: Does The 4% Rule Work In Today’s Markets?

Will do good wrote: Sun Sep 08, 2019 2:37 pm Not sure I buy into "This time is different". I wonder how many experts would have predicted this years bond index would pass 8-9%?
I use 4%as a guide and adjust as needed, as long as you are not super tight with 4% SWR most would be fine.
I'm not ready to spend this year's to-date bond index return yet. If and when interest rates increase, bond prices will probably drop. I hold bonds for their typically lower volatility and higher internal rate of return than stocks. I'm concerned that bonds are becoming more of a speculation now that their internal rate of return is so low. This would be a cause for caution for those who follow a safe withdrawal rate strategy (though I personally rely on VPW).
by zengolf2011
Sat Sep 07, 2019 11:23 pm
Forum: Personal Investments
Topic: Trying to wrap my head around VPW
Replies: 29
Views: 4832

Re: Trying to wrap my head around VPW

Thanks, longinvest. Your explanation sure makes sense to me. I think I get the math, where varying percentage withdrawals will never deplete a portfolio, that this approach is different from Safe Withdrawal Rate methods, and that asset allocation and investment horizon are very important. I think support of different approaches (e.g., SWR methodologies), their convergence on a similar withdrawal rate compared with the results of VPW, and their agreement on the portfolio balance needed, only add confidence in VPW's validity and reliability. In fact, I base my whole retirement plan on my confidence in the VPW method. I am very grateful to you for the work you've done. I was trying to highlight the possibility that future returns could be quit...
by zengolf2011
Sat Sep 07, 2019 6:57 pm
Forum: Personal Investments
Topic: Trying to wrap my head around VPW
Replies: 29
Views: 4832

Re: Trying to wrap my head around VPW

longinvest wrote: Sat Sep 07, 2019 5:07 pm
zengolf2011 wrote: Sat Sep 07, 2019 11:20 am As I understand it, both the VPW and TRP simulations are based on history,
I think that it's important not to confuse constant 4% inflation-adjusted withdrawals (SWR) which are based on historical simulations with variable percentage withdrawals (VPW) which are primarily based on mathematics.
Thanks, longinvest. Please help me understand this better. I understand that VPW bases withdrawals on remaining life expectancy and asset allocation, but doesn't the reliance on asset allocation contain implicit assumptions about rates of return?
by zengolf2011
Sat Sep 07, 2019 11:20 am
Forum: Personal Investments
Topic: Trying to wrap my head around VPW
Replies: 29
Views: 4832

Re: Trying to wrap my head around VPW

Barb, thanks for your great questions, and, longinvest, for all your excellent work with VPW. I base my retirement on the VPW worksheet, including providing for a surviving spouse, my main concern. Since I rely so heavily on VPW, I decided to seek additional validation. I like the T. Rowe Price Retirement Income Calculator, so I ran my numbers. It yielded similar spending rates to VPW with an 80% chance of our portfolio lasting 25 yrs (age 95), based on 1,000 simulations. Like you, Barb, we have developed frugal habits over a lifetime, and seldom if ever spend all VPW allows. As I understand it, both the VPW and TRP simulations are based on history, so it's possible that the future may produce different results. My plan is to be carefree (b...
by zengolf2011
Thu Aug 01, 2019 11:24 am
Forum: Personal Consumer Issues
Topic: What are your hobbies?
Replies: 561
Views: 16669

Re: What is your hobby and how did it come to be your hobby?

I love learning, so reading is an obvious hobby. I've been pleasantly surprised at things I've learned from playing golf regularly -- staying in the moment, fully present, scientific v. artistic thinking, self-control, comradery. Played some as a kid, but took a 35-yr sabbatical during military stint and work. Felt I was "too busy" to play, which was misguided. I enjoy writing for my eyes only. I love camping, sometimes solitary, a great change of pace that helps me get centered and in touch with nature. I go at least a few days every month. I'm too old to enjoy roughing it anymore, but really dig "glamping" in my small teardrop trailer. It's best when I combine all four of hobbies in a single trip. These brief forays ma...
by zengolf2011
Thu Jul 25, 2019 3:03 pm
Forum: Personal Consumer Issues
Topic: Accord approaching 100k miles, how to push it beyond
Replies: 45
Views: 6739

Re: Accord approaching 100k miles, how to push it beyond

My 2014 Honda Crosstour has 60,000 mi. It seems as good as the day I bought it. I do what the Honda dealer suggests, which is usually what the manual/maintenance minder call for. I did go through three Honda dealers for maintenance before landing with one I trust. My current dealer advises me what to change and what is optional, without prompting. For example, I recently replaced tires when the dealer advised me I could go either way, that they would probably be good for another 10k or so. Since I do a lot of driving in desolate, mountainous areas, I opted to go ahead and replace. (My Honda dealer has a price-match guarantee for tires, and price was comparable to Sam's or Costco.) Have driven both Accords and Camrys to 200k in years past (s...
by zengolf2011
Tue Jul 23, 2019 11:24 am
Forum: Investing - Theory, News & General
Topic: Updates: 60/40 VS 30/70 Allocation: Bernstein VS Ferri ? What Did You Do Post Pandemic 3/2020? or YTD 2022?
Replies: 263
Views: 45005

Re: 60/40 VS 30/70 "Center Of Gravity"@@ Allocation for Retirees ??? Bernstein VS Ferri ?? -- What Would You Do?

Great thread -- thanks, all. If a retiree has had a reasonable savings rate for a reasonable amount of time before retirement, probably any stock allocation between 30% and 70% will do. I believe investor behavior will play a larger role than the actual allocation. The best allocation for me is the one that fortifies me to stay the course.
by zengolf2011
Sat Jul 13, 2019 11:04 am
Forum: Investing - Theory, News & General
Topic: Five Nobel Laureates Recommend The Market Portfolio
Replies: 58
Views: 8365

Re: Five Nobel Laureates Recommend The Market Portfolio

Thanks for yet another helpful post, Taylor. The message of the authorities quoted seems pretty clear to me. For those seeking a deeper dive, there is the helpful link you provided (The Three-Fund (Market) Portfolio), or your recent book.
by zengolf2011
Sun Mar 10, 2019 11:37 am
Forum: US Chapters
Topic: Arizona Chapter
Replies: 139
Views: 50820

Re: Arizona Chapter

Thanks, Mark. I plan to attend.
by zengolf2011
Mon Jan 28, 2019 12:40 pm
Forum: Investing - Theory, News & General
Topic: BHers, what is your Roth IRA %?
Replies: 137
Views: 10773

Re: BHers, what is your Roth IRA %?

My Roth is 10%, but wish it were more. I made lots of financial mistakes, and this was one. My situation was complicated a bit by continuing earning some unplanned income after retirement (and starting SS). But I also failed to make Roth contributions before retirement, and started conversions too late. Now, at 72 and taking RMDs, I think that ship has sailed. I left money on the table. Too soon old, too late smart. Hope others learn from my mistakes. On the bright side, I've ended up OK. Proves Mr. Bogle's point: one need only get a few things right.
by zengolf2011
Sat Jan 26, 2019 10:11 am
Forum: US Chapters
Topic: Happy Birthday Taylor! 96 years young!
Replies: 77
Views: 9243

Re: Happy Birthday, Taylor!

Happy Birthday, Taylor, and heartfelt thanks for all you have given me personally by sharing your wisdom and research. You are my idol.
by zengolf2011
Tue Jan 22, 2019 9:16 pm
Forum: Investing - Theory, News & General
Topic: Your Retirement W/D method and why?
Replies: 40
Views: 4841

Re: Your Retirement W/D method and why?

We are in our third year of RMDs, starting what I consider the middle third of retirement. We live simple, happy lives. Our W/D method is to use guaranteed incomes for routine expenses, RMDs as mad money (though we often donate and reinvest at least some), taxable funds for extraordinary expenses, tax-exempt for longevity protection for a surviving spouse, and home equity for eventual continuing care expenses. It's conservative, but we enjoy life and sleep well. We will increase charitable distributions as we go along. The key to our retirement: spending more wouldn't make us happier, so we don't. We weren't always this way. We went through years of manic striving and consumption, and were much less well off. We have been very fortunate, la...
by zengolf2011
Sat Jan 19, 2019 7:15 pm
Forum: Investing - Theory, News & General
Topic: The NY Times calls us a cult but in a good way
Replies: 62
Views: 9757

Re: The NY Times calls us a cult but in a good way

We are a wide-ranging, diverse set of individuals who share this blog and reasoned discussions on saving and investing. This blog facilitates rigorous analysis on a daily basis, and we usually require evidence-based discussion (unlike much of the blogosphere). We are not easy on ourselves. So, Bogleheads aren't "cultish" or "cult-like," and this was just an unfortunate choice of descriptors on the part of a writer who meant well. No big deal.
by zengolf2011
Thu Jan 17, 2019 1:38 pm
Forum: Investing - Theory, News & General
Topic: Tributes to Jack Bogle
Replies: 266
Views: 42601

Re: ode to St. Jack

So good to hear from you, Larry. Thank you for posting this.
by zengolf2011
Wed Jan 16, 2019 11:59 pm
Forum: Investing - Theory, News & General
Topic: John Bogle has died at age 89
Replies: 856
Views: 81249

Re: John Bogle has died at age 89

Thank you, Mr. Bogle, for enabling us to be better investors, and especially for showing us how to be better human beings. Thanks also to the generous people who have built this community to pursue Mr. Bogle's vision and mission.
by zengolf2011
Tue Jan 01, 2019 1:30 pm
Forum: Investing - Theory, News & General
Topic: The Intelligent Investor
Replies: 16
Views: 2161

Re: The Intelligent Investor

Much has changed since Graham's time, but his work is a classic and still very much worth reading. Dismissing him is kind of like saying there's no point in reading Aristotle or Newton because Einstein's physics made theirs obsolete. Actually, their work made Einstein's possible. Same is true of the philosophies of Mr. Bogle, Warren Buffett, many others. Plenty of great modern how-to guides to investing, but I think the best are still based on the Graham value philosophy. I think the BH philosophy derives directly from Graham's concept of defensive investing.
by zengolf2011
Fri Dec 14, 2018 9:16 pm
Forum: Personal Investments
Topic: Imminent retirees & sequence fear
Replies: 69
Views: 5794

Re: Imminent retirees & sequence fear

Diver, have you considered building a 10-yr CD or Treasuries ladder sufficient to provide a desirable standard of living for that time frame, and putting a substantial amount of the remainder (whatever %age you will be able to stick with) into equities? If you're concerned about a collapse of CDs or U.S. government bonds, I think you're talking about a total collapse of the U.S. government and economy. If that happens, I don't see how all the dollar-denominated cash in the world would help. And given the interdependence of global economies, probably every other currency would collapse as well. I'm retired and share your worries. I've set aside short-term assets to cover several years of withdrawals, but am sticking with my moderately conse...
by zengolf2011
Fri Dec 14, 2018 3:58 pm
Forum: Personal Investments
Topic: Imminent retirees & sequence fear
Replies: 69
Views: 5794

Re: Imminent retirees & sequence fear

Diver, have you considered building a 10-yr CD or Treasuries ladder sufficient to provide a desirable standard of living for that time frame, and putting a substantial amount of the remainder (whatever %age you will be able to stick with) into equities? If you're concerned about a collapse of CDs or U.S. government bonds, I think you're talking about a total collapse of the U.S. government and economy. If that happens, I don't see how all the dollar-denominated cash in the world would help. And given the interdependence of global economies, probably every other currency would collapse as well. I'm retired and share your worries. I've set aside short-term assets to cover several years of withdrawals, but am sticking with my moderately conser...
by zengolf2011
Wed Dec 05, 2018 2:43 pm
Forum: Investing - Theory, News & General
Topic: Question: When Bubbles Burst, Do Asset Prices Go Below Instrinsic Value?
Replies: 14
Views: 1968

Re: Question: When Bubbles Burst, Do Asset Prices Go Below Instrinsic Value?

I think it's common for asset prices to fall below any reasonable estimate of "intrinsic" value during financial crises. Panic selling takes on a life of its own completely decoupled from hard asset values , as does frenzied buying in the run-up to bubbles. In 1932, Benjamin Graham wrote an article for Forbes listing 20 leading companies of the time whose stock was selling for less than their cash assets. In other words, one could buy the company at its prevailing market capitalization, take the cash assets, throw the rest of the company away, and realize a profit. He indicated there were dozens more companies in similar shape. This is not just a phenomenon of the Great Depression. Corporate raiders have made fortunes doing just t...
by zengolf2011
Fri Nov 23, 2018 2:24 pm
Forum: Personal Investments
Topic: Roth vs IRA 3 fund Portfolio's percentages
Replies: 4
Views: 501

Re: Roth vs IRA 3 fund Portfolio's percentages

Can anyone "foresee" the future? How long is the "foreseeable future"? I think trying to foresee the future is market timing, which has not worked out too well for me. I don't know whether international stocks and bonds are terrible investments now or not. That's why I diversify in different investment classes, not all of which I currently love. As to whether I'm overexposed in equities, I am if I have any doubt I can stay the course, as outlined in my investment policy statement, through a prolonged market downturn.
by zengolf2011
Mon Oct 22, 2018 7:20 pm
Forum: Investing - Theory, News & General
Topic: Do you use any economic "theory" in your approach to investing?
Replies: 12
Views: 1206

Re: Do you use any economic "theory" in your approach to investing?

I think most investors subscribe to the theory that the economy will expand over the long run. I think many of us doubt the reliability of short-term forecasting. To me, these two beliefs are the theoretical basis for my buy-and-hold approach to investing.
by zengolf2011
Thu Oct 11, 2018 8:50 pm
Forum: Personal Investments
Topic: When stocks and bonds drop at the same time, what do you do?
Replies: 98
Views: 12713

Re: When stocks and bonds drop at the same time, what do you do?

When I was in the accumulation phase, during stock market drops I bought as many shares in stock funds as I could afford. I didn't sweat bond fund dips. Now I'm in the distribution phase, and I can tell you the two phases are totally different. Now that I face Required Minimum Distributions, I maintain a 3-year CD ladder just for this situation. I always withdraw from the best performing asset -- and if that's my CD stash, so be it. I'll replenish them when markets recover. If the markets really, really tank, I reinvest RMDs in my taxable account, so I'm never withdrawing during a substantial (greater than 10%) drop in my portfolio. One of my goals is to avoid turning a paper loss into a real loss. I second-guess myself all the time, but ne...
by zengolf2011
Sun Sep 23, 2018 11:11 pm
Forum: Personal Consumer Issues
Topic: When is it OK to not go through car insurance after you've been hit?
Replies: 17
Views: 2326

Re: When is it OK to not go through car insurance after you've been hit?

Sorry, but I would have to say it's usually a mistake to forgo the insurance process. Twice I have let someone who hit my car talk me into not reporting. Twice I regretted it. In the first case, my car sustained several thousand dollars of damage. The other driver begged me not to report the accident, and accompanied me to a repair shop to get a quote. When he saw the quote, he balked at paying. Because I had his name and license information, I was able to submit that info to my insurance company, and they handled it from there. In the second instance, I felt sorry for the elderly person who rear-ended me (while stopped at a red light!) and asked me not to involve the insurance companies. I indulged him by having me accompany me to get a qu...