Search found 225 matches

by delrinson
Mon Jun 24, 2019 10:59 am
Forum: Personal Investments
Topic: Why does AA matter as long as I stick to it?
Replies: 26
Views: 2699

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

The devil is in the details. If you are sitting at 50x or 100x your spending, then 20/80 or 0/100 will meet your needs. 20/80 would be at the low end of the recommendation for stocks in retirement. You have 7 years to go, so you are either very risk intolerant or you just don't need to take the ris...
by delrinson
Mon Jun 24, 2019 10:59 am
Forum: Personal Investments
Topic: Why does AA matter as long as I stick to it?
Replies: 26
Views: 2699

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

The devil is in the details. If you are sitting at 50x or 100x your spending, then 20/80 or 0/100 will meet your needs. 20/80 would be at the low end of the recommendation for stocks in retirement. You have 7 years to go, so you are either very risk intolerant or you just don't need to take the ris...
by delrinson
Mon Jun 24, 2019 10:37 am
Forum: Personal Investments
Topic: Why does AA matter as long as I stick to it?
Replies: 26
Views: 2699

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

My apologies in advance for a basic question for which there may be very obvious answers... I am having difficulty understanding why one's basic AA in retirement matters (within reason, of course) as long as one sticks to it. For sake of simplicity, let's think simply in terms of stock/bond. Why sho...
by delrinson
Mon May 20, 2019 5:33 pm
Forum: Personal Finance (Not Investing)
Topic: Pros and Cons of Refinancing Mortgage
Replies: 21
Views: 1702

Re: Pros and Cons of Refinancing Mortgage

We itemize deductions... Are you really able to itemize deductions at 16% marginal tax rate and 2.75% mortgage rate on less than 300K? Why is that surprising? Mortgage interest plus 10K SALT plus charitable contributions...in 2018 came to about 33k. That is $15k+ in charitable contributions, quite ...
by delrinson
Mon May 20, 2019 4:23 pm
Forum: Personal Finance (Not Investing)
Topic: Pros and Cons of Refinancing Mortgage
Replies: 21
Views: 1702

Re: Pros and Cons of Refinancing Mortgage

niceguy7376 wrote:
Mon May 20, 2019 3:50 pm
delrinson wrote:
Mon May 20, 2019 10:39 am
We itemize deductions...
Are you really able to itemize deductions at 16% marginal tax rate and 2.75% mortgage rate on less than 300K?
Why is that surprising? Mortgage interest plus 10K SALT plus charitable contributions...in 2018 came to about 33k.
by delrinson
Mon May 20, 2019 11:52 am
Forum: Personal Finance (Not Investing)
Topic: Pros and Cons of Refinancing Mortgage
Replies: 21
Views: 1702

Re: Pros and Cons of Refinancing Mortgage

Thanks for the input...certainly seems to make sense to stay put.
by delrinson
Mon May 20, 2019 10:39 am
Forum: Personal Finance (Not Investing)
Topic: Pros and Cons of Refinancing Mortgage
Replies: 21
Views: 1702

Re: Pros and Cons of Refinancing Mortgage

We itemize deductions...just an additional data point. And we have, through insurance and HELOC, access to plenty of 5% money. So perhaps it makes sense just to rely on that for needs that arise.
by delrinson
Mon May 20, 2019 9:05 am
Forum: Personal Finance (Not Investing)
Topic: Pros and Cons of Refinancing Mortgage
Replies: 21
Views: 1702

Pros and Cons of Refinancing Mortgage

Mortgage balance is about $268k. 15 year fixed, 2.75%, about nine years to go. Obviously this is a great rate and a good case can be made for just leaving well enough alone. It is possible we could stay in the house for another nine years....but just as possible that we could move in another 4-5 yea...
by delrinson
Fri May 10, 2019 9:43 am
Forum: Personal Investments
Topic: Cash cushion alternative to money market?
Replies: 4
Views: 509

Re: Cash cushion alternative to money market?

My intention in having a cash cushion is to serve as a buffer to accommodate the "lumpiness" of regular, anticipated expenses and to accommodate unanticipated expenses over the next 12-8 months. You know, bailing son out of jail...things like that. :happy
by delrinson
Fri May 10, 2019 8:51 am
Forum: Personal Investments
Topic: Cash cushion alternative to money market?
Replies: 4
Views: 509

Cash cushion alternative to money market?

Recently bumped up our cash cushion to a very comfortable level....sold some VTI to do so. Cash sits at Redneck bank earning 2.5% and in a CD that matures July 2020 at 3%. Anything over $50,000 at Redneck is at Ally earning 2.2%. If I think of that "bottom layer/rung" of money that we are very unlik...
by delrinson
Fri May 03, 2019 4:59 pm
Forum: Investing - Theory, News & General
Topic: Berkshire buying stake in Amazon - my opinion
Replies: 55
Views: 6408

Re: Berkshire buying stake in Amazon - my opinion

:shock: I'm 25% BRK and not happy about it, but giving them the benefit of the doubt and look forward to their reasoning. Maybe just a hedge against their retail subsidiaries losing sales to Amazon? Or maybe they see something traditional value measures do not? 25% of "total" portfolio??? Yep. I'm ...
by delrinson
Thu Mar 21, 2019 3:16 pm
Forum: Investing - Theory, News & General
Topic: Retired Investors - Do You Keep Cash For Down Years
Replies: 107
Views: 8725

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

Sounds like a very sensible, straightforward approach. May do this when the time comes. 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 Marke...
by delrinson
Wed Mar 06, 2019 9:43 pm
Forum: Investing - Theory, News & General
Topic: Happy 10th Birthday Bull Market!
Replies: 34
Views: 3240

Re: Happy 10th Birthday Bull Market!

Even though we technically entered a bear market it still feels like a 10 year bull market....And that we’re living on borrowed time.
by delrinson
Mon Feb 25, 2019 8:03 am
Forum: Investing - Theory, News & General
Topic: Buffet's Cash Position
Replies: 71
Views: 5669

Re: Buffet's Cash Position

Buffett mentioned this morning that there was the possibility of a large acquisition in Q4 that didn't pan out...that largely explains why he sat on the cash and didn't buy more equities or do significant buybacks. He continues to think the US market is attractive as long as interest rates stay wher...
by delrinson
Sat Feb 23, 2019 12:45 pm
Forum: Investing - Theory, News & General
Topic: Buffett's Shareholder Letter for 2018
Replies: 43
Views: 4841

Re: Buffett's Shareholder Letter for 2018

I was surprised there weren't more share buybacks in Q4 when Berkshire was trading below 1.3 book....especially since Buffett says "Berkshire will be a significant repurchaser of its shares." $112 billion is a lot of cash to be sitting on!! We are 30% Berkshire these days...so I'm a hybrid Boglehead...
by delrinson
Thu Feb 07, 2019 10:45 am
Forum: Personal Finance (Not Investing)
Topic: FreeTaxUSA.com now has 2018 Return available.
Replies: 41
Views: 5091

Re: FreeTaxUSA.com now has 2018 Return available.

After several decades of filing paper returns (it was just so easy to repeat what I did from the previous year), I used FreeTaxUSA for 2018 federal and state. What initially motivated was the change in federal forms this year. It was all perfectly intuitive and streamlined....could not have been eas...
by delrinson
Sat Feb 02, 2019 4:58 pm
Forum: Personal Finance (Not Investing)
Topic: Medicaid as Stand Alone Insurance for Adult with Disability
Replies: 2
Views: 347

Medicaid as Stand Alone Insurance for Adult with Disability

Our family is undergoing a medical insurance transition. We have an adult child with a disability with a Blue Cross plan as the primary coverage and Medicaid as secondary. The current Blue Cross plan is coming to an end. Thus the adult child will be left with Medicaid as the only health insurance. A...
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: 3844

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: 3844

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: 3844

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: 6018

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: 2298

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: 2298

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: 2298

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: 2298

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: 2298

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: 2298

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: 1180

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: 1180

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: 1180

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: 1180

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: 6018

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: 6018

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: 6018

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: 6018

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: 6018

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: 6018

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: 6018

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: 6018

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: 6018

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: Personal Investments
Topic: How Best to Utilize Permanent Life Insurance Upon Retirement
Replies: 22
Views: 1927

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: Personal Investments
Topic: How Best to Utilize Permanent Life Insurance Upon Retirement
Replies: 22
Views: 1927

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: Personal Investments
Topic: How Best to Utilize Permanent Life Insurance Upon Retirement
Replies: 22
Views: 1927

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: Personal Investments
Topic: How Best to Utilize Permanent Life Insurance Upon Retirement
Replies: 22
Views: 1927

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: 1479

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: 1479

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: Personal Investments
Topic: CD rates--what to do?
Replies: 45
Views: 7511

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: Personal Investments
Topic: Should fixed income allocation necessarily change over the years?
Replies: 11
Views: 876

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: Personal Investments
Topic: Should fixed income allocation necessarily change over the years?
Replies: 11
Views: 876

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: 2291

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.