Search found 157 matches
- 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!
- 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 ...
- 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...
- 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 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 “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 don't include either home value in my financial planning because, at present, I would be very reluctant to sell.
- 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 ...
- 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.
- 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.
- 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.
- 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...
- 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.
- 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...
- 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.
- Sun Apr 19, 2020 3:38 pm
- Forum: Personal Investments
- Topic: I'm out [of the market]
- Replies: 109
- Views: 13894
- 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.
- 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...
- 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?
Great succinct reminder. Stock is a ten-year investment. Obsession over current values is irrational, counterproductive, and would not make me a better investor.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.
- 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...
- 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.
- 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...
- Fri Dec 27, 2019 11:27 am
- Forum: Personal Consumer Issues
- Topic: Anti Virus?
- Replies: 36
- Views: 2814
Re: Anti Virus?
Thanks for the link, Mr. Albertson. I found it pretty convincing. I'll probably go with their recommendations when my McAfee subscription expires.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/
- 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.
- 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!
- 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!
- 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.
- 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 ...
- 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...
- 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 ...
- 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?
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).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.
- 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...
- 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
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?longinvest wrote: ↑Sat Sep 07, 2019 5:07 pmI 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.zengolf2011 wrote: ↑Sat Sep 07, 2019 11:20 am As I understand it, both the VPW and TRP simulations are based on history,
- 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...
- 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...
- 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...
- 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.
- 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.
- 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.
- 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.
- 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.
- 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...
- 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.
- 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.
- 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.
- 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.
- 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...
- 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...
- 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...
- 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.
- 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.
- 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...
- 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...