Search found 51 matches

by OffGridder
Tue Dec 10, 2019 12:20 pm
Forum: Investing - Theory, News & General
Topic: The Three-Fund Portfolio
Replies: 2665
Views: 1739315

Re: The Three-Fund Portfolio

Hi Gary, Two things here i learned , money is fungible and its all 1 account meaning think of your IRA and taxable accounts as sub-accounts under your 1 main account. So say you have stocks in your IRA and were forced to liquidate 100k in stocks due to an RMD but you really want to keep your asset ...
by OffGridder
Sun Oct 13, 2019 5:18 pm
Forum: Personal Finance (Not Investing)
Topic: Updated longevity calculator - from the actuaries
Replies: 21
Views: 2561

Re: Updated longevity calculator - from the actuaries

In the search for certainty, it is easy to pay too much attention to averages and not enough to dispersion. Alas ( or perhaps fortunately ????) you do not know when you will die, and all of the longevity calculators are giving you relatively small differences in averages, which are on top of relati...
by OffGridder
Mon Aug 26, 2019 11:23 am
Forum: Investing - Theory, News & General
Topic: The Three-Fund Portfolio
Replies: 2665
Views: 1739315

Re: Portfolio Withdrawals

In 1980, at about age 80 , we purchased the two single-premium lifetime annuities (SPIAs) guaranteeing a lifetime income. Wow Taylor, you have lead a blessed life. I can only hope to live 120 years 😁 and look as young and be as articulate a you. Thanks for everything you do Best Regards, Dave [ quo...
by OffGridder
Mon Aug 26, 2019 10:39 am
Forum: Investing - Theory, News & General
Topic: The Three-Fund Portfolio
Replies: 2665
Views: 1739315

Re: Managing a portfolio

.... Even if you include moving money around a person might spend under an hour a year managing investments. I don't think I have bought or sold to rebalance in years. .... dbr, Thank you for your feedback. Is your IRA/401K your only account or do you maintain the same asset allocation in each of y...
by OffGridder
Mon Aug 26, 2019 12:28 am
Forum: Investing - Theory, News & General
Topic: The Three-Fund Portfolio
Replies: 2665
Views: 1739315

Re: Managing a portfolio

Hi Taylor, I know simplicity is the key attribute of the 3 Fund Portfolio. I have read that you do not spend more than an hour per year managing your portfolio. Does that mean you only make one annual lump sum withdrawal to cover the next year's estimated expenses rather then withdrawing incrementa...
by OffGridder
Sun Aug 25, 2019 7:47 pm
Forum: Investing - Theory, News & General
Topic: The Three-Fund Portfolio
Replies: 2665
Views: 1739315

Re: The Three-Fund Portfolio

One option is to run all transactions through a money market account including having dividends credited there. Thank you for your reply. Yes, that is what I do. Monthly withdrawals from the MM to checking to pay expenses. I replenish the MM once per year in December by withdrawing from my 3 fund p...
by OffGridder
Sun Aug 25, 2019 6:40 pm
Forum: Investing - Theory, News & General
Topic: The Three-Fund Portfolio
Replies: 2665
Views: 1739315

Re: The Three-Fund Portfolio

Hi Taylor, I know simplicity is the key attribute of the 3 Fund Portfolio. I have read that you do not spend more than an hour per year managing your portfolio. Does that mean you only make one annual lump sum withdrawal to cover the next year's estimated expenses rather then withdrawing incremental...
by OffGridder
Mon Jun 24, 2019 10:03 pm
Forum: Personal Investments
Topic: Why does AA matter as long as I stick to it?
Replies: 26
Views: 2862

Re: Why does AA matter as long as I stick to it?

Personally, I put savings that I cannot afford to lose in Vanguard Total Bond Market Index Fund. The rest is in a broad stock market index fund. Best wishes Taylor Taylor, I have seen a number of posts by you stating that your AA is based the above quote. I believe you have also advocated rebalanci...
by OffGridder
Sat Mar 30, 2019 11:55 am
Forum: Personal Consumer Issues
Topic: I have a car problem - $100K+ Cars
Replies: 48
Views: 7174

Re: I have a car problem - $100K+ Cars

So with that said, do the majority of you just buy cash or use a loan to keep the cash liquid in case something comes up. What are your fun cars? I could pay cash, but I have gotten 0% loans for the last 3 car purchases. But aren't those 0% loans subsidized by a higher purchase price than could be ...
by OffGridder
Wed Mar 20, 2019 7:10 pm
Forum: Investing - Theory, News & General
Topic: Retired Investors - Do You Keep Cash For Down Years
Replies: 107
Views: 9314

Re: Retired Investors - Do You Keep Cash For Down Years

Not for "down years", but we do maintain a bit of cash. This is what we do: I am in retirement withdrawal phase. Three fund portfolio. Fixed income allocation is all in TBM, plus 6 months expense in a Money Market fund. Once per year in December we withdraw our estimated expenses for the following y...
by OffGridder
Tue Mar 05, 2019 1:12 pm
Forum: Investing - Theory, News & General
Topic: The Three-Fund Portfolio
Replies: 2665
Views: 1739315

Re: Adding TIPS

Dialectical Investor: I like your thought that TIPS can be thought of as "insurance." However, it can be a mistake to buy insurance that is not needed. The USA's worst annual inflation since the inception of the Aggregate Bond Index (benchmark for Vanguard Total Bond Market), was -13.3% in 1979. Th...
by OffGridder
Thu Feb 21, 2019 11:26 pm
Forum: Investing - Theory, News & General
Topic: The Three-Fund Portfolio
Replies: 2665
Views: 1739315

Re: The Three-Fund Portfolio

Taylor, For many years your fixed income allocation was split 50% TBM, 50% TIPS. You were very happy with that allocation, even after the TIPS fund took a negative dip during the 2008 financial crisis. A few years ago you sold your TIPS and consolidated into just TBM. I believe your reason was for s...
by OffGridder
Sun Feb 17, 2019 11:55 am
Forum: Investing - Theory, News & General
Topic: 30 years not long enough to calculate SWR?
Replies: 27
Views: 2111

Re: 30 years not long enough to calculate SWR?

My question is how one might actually implement this information for planning purposes? How many years should I use for an endpoint? How to factor in higher medical expenses? You should use the joint mortality of your and your partner, taking into account your actual ages. Then take the 80th percen...
by OffGridder
Sat Feb 16, 2019 7:56 pm
Forum: Investing - Theory, News & General
Topic: 30 years not long enough to calculate SWR?
Replies: 27
Views: 2111

Re: 30 years not long enough to calculate SWR?

My question is how one might actually implement this information for planning purposes? How many years should I use for an endpoint? How to factor in higher medical expenses? You should use the joint mortality of your and your partner, taking into account your actual ages. Then take the 80th percen...
by OffGridder
Fri Feb 15, 2019 5:51 pm
Forum: Investing - Theory, News & General
Topic: Will wife’s social security affect my Roth conversions.
Replies: 38
Views: 4347

Re: Will wife’s social security affect my Roth conversions.

I figure it’s time for some example calcs, not only to see if my earlier claim was true, but to show various choices one can make in deciding how much to convert. And before I forget--regarding when your wife starts SS--that I alluded to above. If you decide that it makes sense to do more Roth conv...
by OffGridder
Wed Feb 13, 2019 2:01 pm
Forum: Personal Investments
Topic: Holding too much cash now?
Replies: 34
Views: 4243

Re: Holding too much cash now?

I am in retirement withdrawal phase. Three fund portfolio. Fixed income allocation is all in TBM, plus 6 months expense in a Money Market fund. Once per year in December we withdraw our estimated expenses for the following year from the 3 fund portfolio to maintain our Target AA, and transfer those ...
by OffGridder
Wed Feb 13, 2019 12:47 pm
Forum: Investing - Theory, News & General
Topic: Will wife’s social security affect my Roth conversions.
Replies: 38
Views: 4347

Re: Will wife’s social security affect my Roth conversions.

But the OP can make the best estimate he can by putting the list of expected income sources above into a spreadsheet and use a new column for each year for now until he and his spouse are 72 to see what will happen when RMDs and both Social Securities kick in. Then calculate the tax bracket for eac...
by OffGridder
Fri Feb 08, 2019 12:14 pm
Forum: Personal Investments
Topic: What do you use for your bond exposure?
Replies: 47
Views: 3716

Re: What do you use for your bond exposure?

What do you use for your bond exposure? FinancialRookie: Any good quality, low-cost, short-or intermediate-term bond fund will do the job of providing safety and income in a portfolio. For nearly 30 years I have used Vanguard Total Bond Market Index Fund for our bond allocation. I like it's broad d...
by OffGridder
Wed Feb 06, 2019 12:43 pm
Forum: Investing - Theory, News & General
Topic: If you are old, why bother with rebalancing!!?
Replies: 115
Views: 9541

Re: If you are old, why bother with rebalancing!!?

And for myself, if I pre-decease my spouse, I don't have to give my spouse any extra instructions ahead of time because it just won't matter at all. She will be able to spend as she pleases and the portfolio will take care of itself without any intervention for years and years. If it does not matte...
by OffGridder
Sat Dec 29, 2018 4:35 pm
Forum: Investing - Theory, News & General
Topic: Dave Ramsey [“good growth mutual fund”]
Replies: 54
Views: 6289

Re: Dave Ramsey [“good growth mutual fund”]

DR has said he does use SP500 Index funds in his taxable for tax efficiency. FWIW, considering so many Americans are living paycheck-to-paycheck and are carrying debt, once they get around to serious investing, whether they use actively managed versus index funds matters less than the fact they are...
by OffGridder
Thu Dec 06, 2018 5:02 pm
Forum: Personal Investments
Topic: Retirement planning--how many years of cash equiv should I aim to have?
Replies: 16
Views: 2508

Re: Retirement planning--how many years of cash equiv should I aim to have?

We start each year with 18 months cash, mostly in a money market account. We spend from that pool. We replenish it annually when we do our once per year rebalancing of our 3 fund portfolio.
by OffGridder
Mon Nov 05, 2018 10:31 pm
Forum: Investing - Theory, News & General
Topic: Duration matching with TIPS funds instead of buying individual TIPs
Replies: 16
Views: 1569

Re: Duration matching with TIPS funds instead of buying individual TIPs

I'm not sure I did the analysis correctly, but when I looked into this years ago I came away completely convinced that, no, holding an intermediate-term TIPS fund and a short-term TIPS fund and gradually shifting the allocation from intermediate-term to short-term is not at all equivalent to holdin...
by OffGridder
Fri Nov 02, 2018 12:00 pm
Forum: Investing - Theory, News & General
Topic: Roth conversion strategy
Replies: 19
Views: 2337

Re: Roth conversion strategy

I’m wondering if I should be converting 1/12 each month since I have no idea which direction the market might be going. As I’ve said before—if you don’t know what the market is going to do, then any type of market-timing strategy is just as likely to work for you as it is against you. Personally, t...
by OffGridder
Thu Nov 01, 2018 2:28 pm
Forum: Investing - Theory, News & General
Topic: Roth conversion strategy
Replies: 19
Views: 2337

Re: Roth conversion strategy

In December, I estimate my total income from all sources and any deductions for the following year. I then enter those numbers in TaxCaster to determine how much headspace I will have for Roth conversions. I then convert 75% of that amount in January and top it off in December when I know my final i...
by OffGridder
Thu Nov 01, 2018 1:47 am
Forum: Investing - Theory, News & General
Topic: Core-4 Investing is LIVE! It really is this time!
Replies: 141
Views: 15071

Re: Core-4 Investing is LIVE! It really is this time!

For a retiree living off his/her portfolio, what, if any advantage would any of Rick's Core 4 portfolios with a conservative allocation to equities offer over Taylor Three Fund Portfolio with a conservative allocation.
by OffGridder
Tue Oct 30, 2018 9:22 pm
Forum: Investing - Theory, News & General
Topic: Should we discourage the bond tent?
Replies: 178
Views: 18029

Re: Should we discourage the bond tent?

The finding--that varying allocations within the general range of perhaps 25/75 to 75/25 has very little effect on portfolio survival--is quite robust and is true over many different simulation tools. The only situations in which high stock allocations produce much higher survival rates are those i...
by OffGridder
Sun Sep 23, 2018 1:38 pm
Forum: Investing - Theory, News & General
Topic: For those who use a 2 year cash(like) buffer, how do you know when to use it?
Replies: 67
Views: 5943

Re: For those who use a 2 year cash(like) buffer, how do you know when to use it?

I've been in the decumulation phase for 5 years, not yet collecting social security or RMDs. I start each year with approx 2 years of anticipated expenses in cash (savings account). I spend from this account. Actually, I spend from my checking account and I have an automated monthly "paycheck" tran...
by OffGridder
Thu Sep 20, 2018 2:55 pm
Forum: Personal Investments
Topic: Using Capital Losses to Free Up Headspace for Roth Conversions in 12% Tax Bracket
Replies: 2
Views: 471

Using Capital Losses to Free Up Headspace for Roth Conversions in 12% Tax Bracket

I know capital losses whether current or carryover will be wasted if used up on capital gains which would be taxed at 0% in the 12% tax bracket. However could those capital losses still have value by reducing your AGI and thus opening up "headspace" in the 12% bracket for taxpayers who are making Ro...
by OffGridder
Fri Jul 27, 2018 11:34 am
Forum: Personal Investments
Topic: VG Short & Intermediate Corp Bond Fund
Replies: 4
Views: 690

Re: VG Short & Intermediate Corp Bond Fund

I have seen your posts on your bond timing scheme. Do you move 100% of your bond allocation between TBM and ST Corp based on the chart, or just increase/decrease your allocation percentage? Just curious. I am 70/30 TBM/ST Corp for my bond allocation. Thanks I do not move 100%. One has to move signi...
by OffGridder
Fri Jul 27, 2018 9:50 am
Forum: Personal Investments
Topic: VG Short & Intermediate Corp Bond Fund
Replies: 4
Views: 690

Re: VG Short & Intermediate Corp Bond Fund

We own lots of short-term corporate bond index fund in the form of VCSH and SPSB. I like them because of behavioral finance issues. When compared to Total US Bond Index (see chart below) one is trading credit risk with duration risk. There is no free lunch. So while I have some of each I rebalance ...
by OffGridder
Thu Jul 26, 2018 2:16 pm
Forum: Personal Finance (Not Investing)
Topic: How to Minimize Your Emergency Care Expenses
Replies: 364
Views: 137156

Re: How to Minimize Your Emergency Care Expenses

[quote=123 post_id=4034597 time=1532451068 user_id=4 We have Kaiser too, and are very happy with the service and care we have recieved, including one major emergency. Kaiser does provide coverage for emergencies while traveling including internationally. I am just not sure what the reimbursement ra...
by OffGridder
Thu Jul 26, 2018 12:09 pm
Forum: Personal Finance (Not Investing)
Topic: How to Minimize Your Emergency Care Expenses
Replies: 364
Views: 137156

Re: How to Minimize Your Emergency Care Expenses

I may get a bunch of slings and arrows for this but an easy way to minimize emergency care expenses is to belong to an HMO (like Kaiser that operates their own hospitals and other facilities) and to use Kaiser facilities. Some parts of the country have a strong Kaiser presence, others don't have an...
by OffGridder
Tue Jun 12, 2018 1:27 am
Forum: Investing - Theory, News & General
Topic: Interesting video from Ramsey today [How Ramsey Outperforms The Stock Market]
Replies: 134
Views: 13661

Re: Interesting video from Ramsey today [How Ramsey Outperforms The Stock Market]

I think I recall from a prior thread that he gets the 12% by taking an arithmetic average of a fund that has beaten the market as opposed to a CAGR. I'm curious if anyone has ever called his show and asked something like, "I'm 52 years old and have $500,000 saved up. I think I'm going to retire. Wh...
by OffGridder
Tue Feb 20, 2018 2:01 pm
Forum: Investing - Theory, News & General
Topic: Any reason for equities in tIRA, if there is space for Total Equity Allocation in Taxable and Roth Accounts
Replies: 7
Views: 791

Re: Any reason for equities in tIRA, if there is space for Total Equity Allocation in Taxable and Roth Accounts

If my total portfolio allocation to equities can be fulfilled by my allocations in my taxable and Roth accounts, is there any reason to carve out a minimum percentage to maintain some equities in my tIRA? The rationale for zero equities in the tIRA would be to minimize growth of the tIRA while doin...
by OffGridder
Sun Feb 18, 2018 11:21 pm
Forum: Investing - Theory, News & General
Topic: Any reason for equities in tIRA, if there is space for Total Equity Allocation in Taxable and Roth Accounts
Replies: 7
Views: 791

Any reason for equities in tIRA, if there is space for Total Equity Allocation in Taxable and Roth Accounts

This question pertains to the period when you are making Roth conversions until age 70 and then RMDs. If my total portfolio allocation to equities can be fulfilled by my allocations in my taxable and Roth accounts, is there any reason to carve out a minimum percentage to maintain some equities in my...
by OffGridder
Tue Dec 12, 2017 10:46 pm
Forum: Investing - Theory, News & General
Topic: The Three-Fund Portfolio
Replies: 2665
Views: 1739315

Re: The Three-Fund Portfolio

The money I cannot afford to lose is in diversified, reasonably safe, Vanguard Total Bond Market Index Fund and cash in the bank. My exact bond allocation has changed with my increasing age, death of one son and my wife (fewer heirs to care for), small inheritance, health and life expectancy. After...
by OffGridder
Fri Nov 17, 2017 4:54 pm
Forum: Personal Investments
Topic: Spending Taxable to Zero during Retirement
Replies: 42
Views: 6514

Re: Spending Taxable to Zero during Retirement

Thank you for your replies thus far. Somehow I seemed to have left the impression that I am spending down my taxable account in isolation from my tax advantage accounts. As I stated in my original post I am using withdawals from my taxable for both expenses and income tax on partial Roth conversions...
by OffGridder
Fri Nov 17, 2017 3:18 pm
Forum: Personal Investments
Topic: Spending Taxable to Zero during Retirement
Replies: 42
Views: 6514

Spending Taxable to Zero during Retirement

Retired 2 years ago at age 58. So far it has been great. I am burning down my taxable brokerage account first. The funds are being used for expenses plus income tax on Roth conversions between now and age 70 when I will take SS. I know the general guideline is to burn down your taxable first and the...
by OffGridder
Wed Sep 30, 2015 5:17 pm
Forum: US Chapters
Topic: Roll Call for the Retirement Class of 2015!
Replies: 256
Views: 68504

Re: Roll Call for the Retirement Class of 2015!

Handed in my badge, laptop, keys and walked out the door for the last time an hour ago. Now time for a beer and all day retirement bash on Friday.
by OffGridder
Fri Sep 18, 2015 8:02 pm
Forum: Personal Investments
Topic: Mapping specific assets to retirement income requirements
Replies: 23
Views: 2451

Re: Mapping specific assets to retirement income requirements

I am struggling with similar situation. Rebalance of my taxable vs IRA after receipt of a large lump sum payment. Going into early retirement at age 58. My primary concern is if I load my taxable up with equities and it takes a deep dive causing early depletion of my taxable account, the need to tap...
by OffGridder
Tue Sep 15, 2015 3:06 pm
Forum: Personal Investments
Topic: Rebalance in Taxable or in IRA after receipt of Lump Sum
Replies: 13
Views: 1529

Re: Rebalance in Taxable or in IRA after receipt of Lump Sum

It has been 6 weeks since my original post and receipt of the great guidance you have provided. Thought I would follow up and let you know what I have done. Well I have moved both ROTH's and my wife's 401K to 100% TSM. What I am still on the fence about is allocation of the lump sum in my taxable ac...
by OffGridder
Wed Sep 02, 2015 8:25 pm
Forum: Personal Investments
Topic: Home Equity When Estimating Savings for Retirement
Replies: 47
Views: 4837

Re: Home Equity When Estimating Savings for Retirement

Included in Net Worth but excluded retirement savings until we sold and downsized putting net proceeds in retirement funds to draw from. If you know your going to downsize or move to a lower cost housing area within say 5 years, then I see no problem projecting a conservative net equity into your re...
by OffGridder
Thu Aug 27, 2015 1:41 am
Forum: US Chapters
Topic: Roll Call for the Retirement Class of 2015!
Replies: 256
Views: 68504

Re: Roll Call for the Retirement Class of 2015!

Add me.

Plant closure. No to Cleveland relocation offer. Yes to 6 months severance, 20% short term transitionary stay bonus, 6 months paid Cobra. I will be free at last..free at last.

September 30, 2015. Age 58.
by OffGridder
Sat Aug 22, 2015 3:08 pm
Forum: Personal Investments
Topic: Just confirming....."stay the course"?
Replies: 53
Views: 7953

Re: Just confirming....."stay the course"?

IPS; Rebalance annually on my birthday, but only if current value is outside 5% rebalancing band.
by OffGridder
Tue Aug 11, 2015 9:21 pm
Forum: Personal Consumer Issues
Topic: Anyone not own a Smartphone
Replies: 76
Views: 6729

Re: Anyone not own a Smartphone

Employer repeatedly offers me one and I repeatedly decline. I refuse to let them tether me 24/7. I do have company paid "dumb phone". The number of company phone calls is very manageable and I use it mainly for personal use. No one seems to want to talk anymore, so just having a dumb phone allows me...
by OffGridder
Sat Aug 01, 2015 4:39 pm
Forum: Personal Finance (Not Investing)
Topic: Think about moving from St Louis to Spokane how is the weather different?
Replies: 6
Views: 1522

Re: Think about moving from St Louis to Spokane how is the weather different?

I have lived in the Spokane area for close to 12 years and have traveled to St Louis many times over the years. The winters are cold with a fair amount of snow depending on what elevation or specific location you are at. Lots of micro-climates. Daytime temperatures normally in the mid 20s to low 30s...
by OffGridder
Thu Jul 30, 2015 1:49 am
Forum: Personal Investments
Topic: Rebalance in Taxable or in IRA after receipt of Lump Sum
Replies: 13
Views: 1529

Re: Rebalance in Taxable or in IRA after receipt of Lump Sum

Hi Taylor, Your quick and valuable feedback is again very much appreciated. One more follow-up question if you do not mind. In your last edit of my portfolio is there a reason you only moved TSM to "Her Roth" and not another 7% from the rollover IRA to "His Roth"? That would result in 15% TSM / 19% ...
by OffGridder
Wed Jul 29, 2015 10:32 pm
Forum: Personal Investments
Topic: Rebalance in Taxable or in IRA after receipt of Lump Sum
Replies: 13
Views: 1529

Re: Rebalance in Taxable or in IRA after receipt of Lump Sum

You are awesome Taylor. Still I have one question. Why did you put the TBM in the Roth accounts rather then fill them with TSM? There is enough headroom in the TSM to move some from the traditional rollover IRA to the Roth accounts making them 100% stock and still maintain the same asset allocation ...
by OffGridder
Tue Jul 28, 2015 10:51 pm
Forum: Personal Investments
Topic: Rebalance in Taxable or in IRA after receipt of Lump Sum
Replies: 13
Views: 1529

Re: Rebalance in Taxable or in IRA after receipt of Lump Sum

Thank you Grabiner, Taylor & Livesoft. I absolutely will take expert advice seriously. At suggestion of Lafder, I updated my post above in the recommended format Please feel free to weigh in again.

Thanks again,
-Dave