Search found 208 matches

by delrinson
Sat Jan 12, 2019 6:47 am
Forum: Investing - Theory, News & General
Topic: What are the disadvantages of taking all risk on equity side?
Replies: 63
Views: 3562

Re: What are the disadvantages of taking all risk on equity side?

OP, perhaps the problem is that your emergency fund is not large enough for comfort? Increasing the size of it might satisfy your need for a "risk-free asset bucket". If it winds up large enough to seriously affect your yield, you could hold an equal amount of long bonds so that your overall fixed ...
by delrinson
Fri Jan 11, 2019 9:32 am
Forum: Investing - Theory, News & General
Topic: What are the disadvantages of taking all risk on equity side?
Replies: 63
Views: 3562

Re: What are the disadvantages of taking all risk on equity side?

I should add that I readily admit that my aversion to a broadly diversified fixed income portfolio is a bit irrational and flies in the face of the facts. And I suppose I remain open to intermediate term bonds...especially if/when I get to the point where I want to take the dividends as income to li...
by delrinson
Fri Jan 11, 2019 7:38 am
Forum: Investing - Theory, News & General
Topic: What are the disadvantages of taking all risk on equity side?
Replies: 63
Views: 3562

What are the disadvantages of taking all risk on equity side?

While I've tried to muster enthusiasm for a broadly diversified fixed income portfolio, I find myself leaning against taking much of any risk at all on the fixed income side. Part of my thinking is simply the irritation/frustration of losing any money at all in the portion of my portfolio that is de...
by delrinson
Tue Dec 25, 2018 7:40 am
Forum: Investing - Theory, News & General
Topic: Berkshire Tempting
Replies: 38
Views: 5806

Re: Berkshire Tempting

My buying spree ending up ranging from 187 to 199 per share. Used a chunk of my bond allocation to do so but am perfectly fine with that. Merry Christmas to me! :happy
by delrinson
Sun Dec 23, 2018 4:28 am
Forum: Personal Finance (Not Investing)
Topic: Northwestern 65 Life - Keep it or dump it?
Replies: 31
Views: 2030

Re: Northwestern 65 Life - Keep it or dump it?

I didn't say anything about guaranteed return. I'm simply using two of the data she gave us: annual premium ($63.50) and current cash value ($8503). Using just those numbers, what the return has been over the course of 40 years is over 5%. Just ran them through a future value calculator and it comes...
by delrinson
Sat Dec 22, 2018 10:16 pm
Forum: Personal Finance (Not Investing)
Topic: Northwestern 65 Life - Keep it or dump it?
Replies: 31
Views: 2030

Re: Northwestern 65 Life - Keep it or dump it?

It’s only when one gets very very old that the rate of return at the death benefit becomes mediocre.
by delrinson
Sat Dec 22, 2018 10:13 pm
Forum: Personal Finance (Not Investing)
Topic: Northwestern 65 Life - Keep it or dump it?
Replies: 31
Views: 2030

Re: Northwestern 65 Life - Keep it or dump it?

The rate of return if you die is actually great… Then it’s just a matter of crunching the numbers using the premium and the death benefit. Just plug the numbers into any decent online calculator and you’ll see what I mean.
by delrinson
Sat Dec 22, 2018 10:00 pm
Forum: Personal Finance (Not Investing)
Topic: Northwestern 65 Life - Keep it or dump it?
Replies: 31
Views: 2030

Re: Northwestern 65 Life - Keep it or dump it?

If you simply use the annual premium and the current cash value and crunch the numbers it comes to well over 5%. That doesn’t seem too bad as fixed income investments go. Plus there are the added advantages of the death benefit and the easy ability to borrow.
by delrinson
Fri Dec 21, 2018 9:20 pm
Forum: Personal Finance (Not Investing)
Topic: Northwestern 65 Life - Keep it or dump it?
Replies: 31
Views: 2030

Re: Northwestern 65 Life - Keep it or dump it?

I am amused by the predictable knee-jerk reactions that so many Bogleheads have to permanent life insurance.... If you crunch the numbers, you will find that you've had a reasonable rate of return over the course of 40 years...nothing to sneeze at. And, if you were to die tomorrow, the rate of retu...
by delrinson
Fri Dec 21, 2018 8:00 pm
Forum: Personal Finance (Not Investing)
Topic: Northwestern 65 Life - Keep it or dump it?
Replies: 31
Views: 2030

Re: Northwestern 65 Life - Keep it or dump it?

I am amused by the predictable knee-jerk reactions that so many Bogleheads have to permanent life insurance.... If you crunch the numbers, you will find that you've had a reasonable rate of return over the course of 40 years...about 5.2%...nothing to sneeze at. And, if you were to die tomorrow, the ...
by delrinson
Fri Dec 21, 2018 5:37 pm
Forum: Personal Finance (Not Investing)
Topic: Capital Gains and Qualified Dividends Tax Question
Replies: 12
Views: 1132

Re: Capital Gains and Qualified Dividends Tax Question

Yeah I've always done my own taxes and will continue to do so....used that accountant to file an estate return which was way too complex for me....now regretting it! haha
by delrinson
Fri Dec 21, 2018 2:32 pm
Forum: Personal Finance (Not Investing)
Topic: Capital Gains and Qualified Dividends Tax Question
Replies: 12
Views: 1132

Re: Capital Gains and Qualified Dividends Tax Question

Unconfuse yourself. Go fill out the tax forms with the information you gave us. What is the result? This weekend will be a wonderful time to do that. Not doing taxes just yet...simply trying to get a basic idea of what I'll owe...when I punch the rough numbers into an income tax calculator, it seem...
by delrinson
Fri Dec 21, 2018 2:06 pm
Forum: Personal Finance (Not Investing)
Topic: Capital Gains and Qualified Dividends Tax Question
Replies: 12
Views: 1132

Re: Capital Gains and Qualified Dividends Tax Question

jebmke wrote:
Fri Dec 21, 2018 10:36 am
Only the portion exceeding.
That's what I would think....but I just got an email from an accountant I've used in the past who says "The whole gain will be taxed at that rate."

So I guess I'm still confused....
by delrinson
Fri Dec 21, 2018 10:33 am
Forum: Personal Finance (Not Investing)
Topic: Capital Gains and Qualified Dividends Tax Question
Replies: 12
Views: 1132

Capital Gains and Qualified Dividends Tax Question

Had a basic capital gains and qualified dividend tax (federal) question I was hoping someone could answer. Due to the sale of some appreciated securities, we will get thrown into the new 15% bracket for capital gains (married filing jointly). I'm guessing we'll be about $10,000 above the $77,200 thr...
by delrinson
Mon Dec 17, 2018 2:04 pm
Forum: Investing - Theory, News & General
Topic: Berkshire Tempting
Replies: 38
Views: 5806

Re: Berkshire Tempting

exigent wrote:
Mon Dec 17, 2018 1:12 pm
Were you guys loading up on it when it was below $188 in July?
Another great opportunity… But I was asleep at the wheel at the time.
by delrinson
Mon Dec 17, 2018 9:42 am
Forum: Investing - Theory, News & General
Topic: Berkshire Tempting
Replies: 38
Views: 5806

Re: Berkshire Tempting

Loaded up the truck this morning for under 200 a share. Now Berkshire 25% of our portfolio instead of 10%....which makes me a Boglehead heretic....hahaha.

Of interest is the fact that Berkshire has traded this low relative to book only 3.8% of the time over the last six years.
by delrinson
Sun Dec 16, 2018 8:18 am
Forum: Investing - Theory, News & General
Topic: Berkshire Tempting
Replies: 38
Views: 5806

Re: Berkshire Tempting

We have owned BRKB (and Index funds) for years. I don't care about Buffetts age, book value, dividends, timing or their few mistakes such as IBM. BRKB is a collection of profitable businesses, many of whom have well established moats. I willing to risk that over the long term (10 years plus) these ...
by delrinson
Sun Dec 16, 2018 5:02 am
Forum: Investing - Theory, News & General
Topic: Berkshire Tempting
Replies: 38
Views: 5806

Re: Berkshire Tempting

Sounds like Buffett has telegraphed his willingness to buyback shares in the 1.25 to 1.27 range. Again, right now we're at 1.3. That's close enough. "We know that we're doing the continuing shareholders a favor if we buy it at that price [120% of book value]. And then that gets increasingly more que...
by delrinson
Sat Dec 15, 2018 10:41 pm
Forum: Investing - Theory, News & General
Topic: Berkshire Tempting
Replies: 38
Views: 5806

Re: Berkshire Tempting

I guess I’m not clear as to why book value would not be a pretty clear number. It’s all publicly available data, updated each quarter. Intrinsic value is another matter… Only an estimate in the nature of the case.
by delrinson
Sat Dec 15, 2018 12:21 pm
Forum: Investing - Theory, News & General
Topic: Berkshire Tempting
Replies: 38
Views: 5806

Re: Berkshire Tempting

I’ve been pretty good about sticking to my AA, which includes 10% Berkshire Hathaway. What percentage of your overall equity allocation is Berkshire and why? I own a small amount but have been looking to add now that the price has fallen below my cost basis. It's at about 15% of equity allocation. ...
by delrinson
Sat Dec 15, 2018 9:35 am
Forum: Investing - Theory, News & General
Topic: Berkshire Tempting
Replies: 38
Views: 5806

Re: Berkshire Tempting

Hmmm...I don't see the benefit of BRK/B over an index i.e. SPX-like fund. In this bear market, BRK/B has got all the downsides of the price action without the benefits of a dividend that you'd would get in an spx fund/etf. This assumes you want to be purchasing equities right now. A dividend isn't ...
by delrinson
Sat Dec 15, 2018 9:23 am
Forum: Investing - Theory, News & General
Topic: Berkshire Tempting
Replies: 38
Views: 5806

Re: Berkshire Tempting

Part of my thinking is Buffett's stated buyback threshold. Was 1.2 book...now is somewhat higher (though difficult to quantify...described more in terms of significant discount to intrinsic value, conservatively determined). So there is something of a price floor. But there's no way to have that con...
by delrinson
Sat Dec 15, 2018 7:57 am
Forum: Investing - Theory, News & General
Topic: Berkshire Tempting
Replies: 38
Views: 5806

Berkshire Tempting

I've been pretty good about sticking to my AA, which includes 10% Berkshire Hathaway. But yesterday B shares closed at 200, or 1.3 of book value. That's very cheap. So thinking about breaking my rule and backing up the truck to some reasonable degree. Last time I backed up the truck for Berkshire wa...
by delrinson
Sat Aug 18, 2018 6:56 am
Forum: Investing - Help with Personal Investments
Topic: How Best to Utilize Permanent Life Insurance Upon Retirement
Replies: 22
Views: 1855

Re: How Best to Utilize Permanent Life Insurance Upon Retirement

Extremely thoughtful and helpful response...thanks so much! I can relate to your thought process. I've got three very old policies and have done the same exercise yearly since my mid 50's (62 now). Based on my policies (2 small whole life, 1 mid-sized universal life) and my needs, I've been doing yo...
by delrinson
Sat Aug 18, 2018 6:39 am
Forum: Investing - Help with Personal Investments
Topic: How Best to Utilize Permanent Life Insurance Upon Retirement
Replies: 22
Views: 1855

Re: How Best to Utilize Permanent Life Insurance Upon Retirement

Yes, I was struck by the wisdom of DetroitRick's advice...and to his I would add yours and perhaps a couple of others. Thank you. Our NML policies have been wonderfully flexible tools over the years and I have no doubt that they will continue to be such. I would listen to DetroitRick's advice if I w...
by delrinson
Thu Aug 16, 2018 10:04 am
Forum: Investing - Help with Personal Investments
Topic: How Best to Utilize Permanent Life Insurance Upon Retirement
Replies: 22
Views: 1855

Re: How Best to Utilize Permanent Life Insurance Upon Retirement

David Jay wrote:
Thu Aug 16, 2018 8:26 am
Hard to give useful advice because "permanent" covers a lot of ground these days. What specifically do you hold? Are both policies traditional whole life? Or are they some other variant?
One is whole life, a Northwestern Select 100 policy; the other is Northwestern variable policy.
by delrinson
Thu Aug 16, 2018 7:03 am
Forum: Investing - Help with Personal Investments
Topic: How Best to Utilize Permanent Life Insurance Upon Retirement
Replies: 22
Views: 1855

How Best to Utilize Permanent Life Insurance Upon Retirement

In my mid 50's, hoping to be able to retire at 65. Part of my portfolio consists of two permanent life insurance policies. For the purposes of asset allocation, I regard them as fixed income (as that's how the underlying assets are invested). As a round number, their combined cash value will be abou...
by delrinson
Fri Jul 13, 2018 1:52 pm
Forum: Investing - Theory, News & General
Topic: Treasury Bond Yielding 9%
Replies: 9
Views: 1409

Re: Treasury Bond Yielding 9%

When settling my father's estate a while back, one of his holdings caught my eye: a treasury bond paying 9%. It matured in 2020 I think...not sure when the inception date was. The most recently issued Treasury Bond with an interest rate of at least 9.00% was issued 11/22/1988 and matures 11/15/2018...
by delrinson
Fri Jul 13, 2018 12:03 pm
Forum: Investing - Theory, News & General
Topic: Treasury Bond Yielding 9%
Replies: 9
Views: 1409

Treasury Bond Yielding 9%

When settling my father's estate a while back, one of his holdings caught my eye: a treasury bond paying 9%. It matured in 2020 I think...not sure when the inception date was. But it got me thinking...what must an investment environment be like for one to do anything other than putting ALL of one's ...
by delrinson
Wed Jun 27, 2018 4:35 am
Forum: Investing - Help with Personal Investments
Topic: CD rates--what to do?
Replies: 45
Views: 6979

Re: CD rates--what to do?

aadwen wrote:
Tue Jun 26, 2018 11:28 pm
i found a 2.7 @ 13 months
Where?
by delrinson
Sat Jun 16, 2018 11:22 am
Forum: Investing - Help with Personal Investments
Topic: Should fixed income allocation necessarily change over the years?
Replies: 11
Views: 817

Re: Should fixed income allocation necessarily change over the years?

cherijoh wrote:
Sat Jun 16, 2018 10:32 am
How many years of living expenses do you currently have in fixed income?
About five years.
by delrinson
Sat Jun 16, 2018 7:00 am
Forum: Investing - Help with Personal Investments
Topic: Should fixed income allocation necessarily change over the years?
Replies: 11
Views: 817

Should fixed income allocation necessarily change over the years?

I'm in my late 50s and hope to retire, or at least be able to retire, when I'm 65. After a couple of years of reading and reflecting and fiddling, I arrived at an asset allocation with which I'm perfectly comfortable: 30% Fixed Income 35% US Equity 15% International Equity 10% US REIT 10% Berkshire ...
by delrinson
Thu Jun 14, 2018 8:29 pm
Forum: Investing - Theory, News & General
Topic: 25 month CD at 3%
Replies: 5
Views: 2231

Re: 25 month CD at 3%

EvelynTroy wrote:
Thu Jun 14, 2018 5:29 pm
Membership to purchase CD's is restricted -
Membership is open to those who live or work in Rhode Island, or in nearby communities in Massachusetts or Connecticut.

Evelyn
Good catch. Where do you see that on the web site? I'm having trouble finding it.
by delrinson
Thu Jun 14, 2018 10:03 am
Forum: Investing - Theory, News & General
Topic: 25 month CD at 3%
Replies: 5
Views: 2231

25 month CD at 3%

Pawtucket Credit Union (pcu.org) is offering a 25 month CD at 3%. Best I've seen, thought I'd pass it on.
by delrinson
Thu May 31, 2018 6:59 am
Forum: Investing - Help with Personal Investments
Topic: Relationship between Living Off of Dividends and Maximizing Yield
Replies: 13
Views: 1127

Re: Relationship between Living Off of Dividends and Maximizing Yield

People do many things from a behavioral standpoint or in other words they play mental games. It just the way humans are. It seems that you would not care if your corporate bond fund had a drop in NAV at all as long as the monthly dividend didn't drop. That's basically what you wrote. In other words...
by delrinson
Thu May 31, 2018 6:38 am
Forum: Investing - Help with Personal Investments
Topic: Relationship between Living Off of Dividends and Maximizing Yield
Replies: 13
Views: 1127

Re: Relationship between Living Off of Dividends and Maximizing Yield

Of course I'm happy to have a bit of a corporate tilt anyway...in agreement with Mr. Bogle.
by delrinson
Thu May 31, 2018 5:59 am
Forum: Investing - Help with Personal Investments
Topic: Relationship between Living Off of Dividends and Maximizing Yield
Replies: 13
Views: 1127

Relationship between Living Off of Dividends and Maximizing Yield

I wonder if you fellow Bogleheads could help clarify something for me... I understand that, for any investment, the main consideration is TOTAL RETURN. I further understand that there's nothing magical or even inherently desirable about dividends...whether earnings are entirely retained or to some d...
by delrinson
Sat Apr 14, 2018 7:51 am
Forum: Investing - Help with Personal Investments
Topic: How volatile could REITs be going forward?
Replies: 7
Views: 1075

How volatile could REITs be going forward?

My AA is 15% REIT; my position is VNQ (Vanguard Domestic REIT index). Comfortable with that based on everything I've read (thought it may be a bit too high). I understand that, while REITs have bond-like qualities, they need to be considered equity even though the consensus seems to be that they are...
by delrinson
Sat Apr 07, 2018 5:20 pm
Forum: Personal Finance (Not Investing)
Topic: How do you estimate your home's market value?
Replies: 53
Views: 4222

Re: How do you estimate your home's market value?

My thought is that, since our home is roughly 25-30% of our net worth, it's a good idea to have a rough sense of its current market value. I'm happy to replace the word "need" with "desire." As our home is a marketable asset which will eventually be sold, I need to assign some sort of value to it. I...
by delrinson
Sat Apr 07, 2018 11:16 am
Forum: Personal Finance (Not Investing)
Topic: How do you estimate your home's market value?
Replies: 53
Views: 4222

Re: How do you estimate your home's market value?

As our home is a marketable asset which will eventually be sold, ... to fund the next house? Honestly I always plan to own a home so I have never cared what my home's value is unless I am using it to pay for the next one. It might be a concern for my children someday. Yes. When we sell the current ...
by delrinson
Sat Apr 07, 2018 6:02 am
Forum: Personal Finance (Not Investing)
Topic: How do you estimate your home's market value?
Replies: 53
Views: 4222

How do you estimate your home's market value?

As our home is a marketable asset which will eventually be sold, I need to assign some sort of value to it. I had been working off the bank appraisal that was done for our HELOC two years ago....until I learned that, the financial crisis notwithstanding, such appraisals are still very unreliable (in...
by delrinson
Sat Mar 31, 2018 2:24 pm
Forum: Investing - Help with Personal Investments
Topic: The Dilemma Posed by High Expenses in 403(b) Plan
Replies: 5
Views: 495

Re: The Dilemma Posed by High Expenses in 403(b) Plan

How much do you have in the account? If 0.72 ER corresponds to a high amount over 3 years, then I would stick with S&P 500; otherwise, I would stick with the desired AA. About $100,000 and contributing $1500 a month. If I assume 5% rate of return, that's about $165,000 in three years. So let's call...
by delrinson
Sat Mar 31, 2018 6:37 am
Forum: Investing - Help with Personal Investments
Topic: The Dilemma Posed by High Expenses in 403(b) Plan
Replies: 5
Views: 495

Re: The Dilemma Posed by High Expenses in 403(b) Plan

How much do you have in the account? If 0.72 ER corresponds to a high amount over 3 years, then I would stick with S&P 500; otherwise, I would stick with the desired AA. About $100,000 and contributing $1500 a month. If I assume 5% rate of return, that's about $165,000 in three years. So let's call...
by delrinson
Sat Mar 31, 2018 6:24 am
Forum: Investing - Help with Personal Investments
Topic: The Dilemma Posed by High Expenses in 403(b) Plan
Replies: 5
Views: 495

The Dilemma Posed by High Expenses in 403(b) Plan

Having become something of a low expense fanatic, I am irked by the high expenses of the investment options in my 403b plan. The only way for me currently to achieve my desired AA is to have the 403b invested entirely in international equities. But it's a fund of managed funds, with a total expense ...
by delrinson
Thu Mar 29, 2018 5:14 pm
Forum: Investing - Help with Personal Investments
Topic: Other than simplicity/convenience, what's the case to be made for a total bond portfolio?
Replies: 14
Views: 1522

Re: Other than simplicity/convenience, what's the case to be made for a total bond portfolio?

Just re-read the bond basics wiki...amazing how divergent the advice is, all from well-respected folks...."the predominance of highly respected and conflicting advice" is the language employed. At the very least, I probably need to give more attention to government bonds, as unenthusiastic as I am a...
by delrinson
Thu Mar 29, 2018 1:17 pm
Forum: Investing - Help with Personal Investments
Topic: Other than simplicity/convenience, what's the case to be made for a total bond portfolio?
Replies: 14
Views: 1522

Re: Other than simplicity/convenience, what's the case to be made for a total bond portfolio?

Marketman wrote:
Thu Mar 29, 2018 11:50 am
Just remember when you own corporate bonds you are lending to the same companies you own.
What is the significance of that?
by delrinson
Thu Mar 29, 2018 11:34 am
Forum: Investing - Help with Personal Investments
Topic: Other than simplicity/convenience, what's the case to be made for a total bond portfolio?
Replies: 14
Views: 1522

Other than simplicity/convenience, what's the case to be made for a total bond portfolio?

For my fixed income allocation, I have some in a total bond portfolio. But I find that, as I add to it (which I'm doing to move toward my desired AA), I'm more inclined toward more targeted instruments...specifically short and intermediate term corporate bond ETFs. If I can have money at Ally making...
by delrinson
Thu Mar 29, 2018 7:32 am
Forum: Investing - Help with Personal Investments
Topic: Savings Account Options for Non-Profit Organization
Replies: 4
Views: 961

Savings Account Options for Non-Profit Organization

What are the best savings account choices for a 501(c)3 organization? Apparently Ally, for example, which currently pays 1.45%, won't open accounts for businesses. Best I've been able to find so far is Capital One Spark, which is 1.5% for a year but then goes to 0.4%.

Any other options?
by delrinson
Wed Mar 21, 2018 9:18 am
Forum: Investing - Help with Personal Investments
Topic: My plan to focus on short and intermediate corporate bonds
Replies: 8
Views: 653

Re: My plan to focus on short and intermediate corporate bonds

Another factor....when we sell the house, we will almost certainly buy another for a significantly lower price (due to size and region of country). So, we will have a bunch of leftover cash from the sale of the house and will be able to "fine tune" our fixed income investments at that time.
by delrinson
Wed Mar 21, 2018 8:55 am
Forum: Investing - Help with Personal Investments
Topic: My plan to focus on short and intermediate corporate bonds
Replies: 8
Views: 653

Re: My plan to focus on short and intermediate corporate bonds

Triceratop, those return comparisons are illuminating...thanks!