Search found 181 matches

by miket29
Sun Sep 20, 2020 1:12 pm
Forum: Personal Investments
Topic: Portfolio Adjustments for Retirement : More Defense?
Replies: 21
Views: 1365

Re: Portfolio Adjustments for Retirement : More Defense?

I've read some of what Ferri has written about 70:30 bonds/stocks and it makes sense to me. See https://seekingalpha.com/article/3036636-the-center-of-gravity-for-retirees and discussions such as https://www.bogleheads.org/forum/viewtopic.php?t=219989 But preferences are all over the map, some like ...
by miket29
Mon Aug 24, 2020 11:27 pm
Forum: Personal Investments
Topic: Vanguard Funds that offer a monthly payment?
Replies: 27
Views: 3323

Re: Vanguard Funds that offer a monthly payment?

Hey all, I am looking into setting up some form of portfolio for a family member that wants to have monthly payments that they can use for some supplemental income to make up for them leaving a part-time job they held before. They have a nice nest egg You don't give enough details for advising. See...
by miket29
Sun Aug 23, 2020 5:52 pm
Forum: Personal Investments
Topic: When is enough enough?
Replies: 73
Views: 6973

Re: When is enough enough?

As I add it up the OP has about $1.3 million saved and owns 2 homes. Assuming no downsizing or selling the vacation home, this is the amount they'd have to draw down for expenses if they start drawing down relatively soon. At 4% that would be about $50K/yr pre-tax, If you go by the "3% is the new 4%...
by miket29
Fri Aug 07, 2020 1:05 pm
Forum: Personal Investments
Topic: deciding when to sell to implement allocation change?
Replies: 9
Views: 580

deciding when to sell to implement allocation change?

For decades I have been a buy-and-hold investor, believing that market timing doesn't work. So thru the drops in 2000 and 2008 I didn't change anything, just stayed the course. In fact holding the discipline of staying invested in a sense made things easy. But now that I'm approaching retirement I w...
by miket29
Fri Jul 31, 2020 2:11 pm
Forum: Personal Investments
Topic: Good idea to hold TIPS now?
Replies: 85
Views: 5983

Re: Good idea to hold TIPS now?

I was thinking about selling some of our current bonds to buy Fidelity Inflation Protected Bond Index (FIPDX) but not sure how much or even if this is a good choice or good time to do it now. I read in another forum that one should buy short term TIPS. I was thinking of buying maybe 20% of our bond...
by miket29
Fri Jul 31, 2020 1:37 pm
Forum: Personal Investments
Topic: USING TIPS FUNDS to fund a Liability Matching Portfolio AGES 76-100
Replies: 10
Views: 631

Re: USING TIPS FUNDS to fund a Liability Matching Portfolio AGES 76-100

I don't understand why you have the first step of buying TIPS funds. Why not go directly to the TIPS ladder of actual bonds?
by miket29
Fri Jul 17, 2020 5:45 pm
Forum: Personal Investments
Topic: Small & Mid Cap Funds - Sell or Hold ?
Replies: 51
Views: 2963

Re: Small & Mid Cap Funds - Sell or Hold ?

i read in the forums that small and medium caps are close to bottom. So should i hold these for some more time and wait till these go up before selling. appreciate your thoughts on this . Thank you The Boglehead approach is to hold low cost mutual funds for the long term, rebalancing as appropriate...
by miket29
Fri Jul 17, 2020 5:17 pm
Forum: Personal Investments
Topic: Vanguard Personal Advisor Services
Replies: 18
Views: 1469

Re: Vanguard Personal Advisor Services

Index funds aren't actively managed! :confused sure they are. They don't literally buy every bond and stock in existence. An actively managed fund uses some strategy to try to outperform the market. An index fund tries to match the performance of an index. Even if they do this without buying the en...
by miket29
Thu Jul 16, 2020 10:49 pm
Forum: Personal Investments
Topic: Firecalc says 100% success with 0% stocks
Replies: 37
Views: 4444

Re: Firecalc says 100% success with 0% stocks

One concern is that with 100% 5 year treasuries there's no diversification across asset classes, so if some event happens that has a severe negative impact to 5 year treasuries, you might get wiped out. Whereas if there was some diversification across asset classes that aren't impacted in the same ...
by miket29
Thu Jul 16, 2020 5:35 pm
Forum: Personal Investments
Topic: Firecalc says 100% success with 0% stocks
Replies: 37
Views: 4444

Re: Firecalc says 100% success with 0% stocks

Annual spend - $40,000 Portfolio - $1.6M Years - 40 Soc Sec starting 2032 - $18,750 (reduced 25% from original figure - ignoring second Soc Sec altogether) Inflation - 4.0% (increased from 3.0% model starts with) Portfolio - 100% 5 year Treasury With no legacy motive why wouldn't we just put everyt...
by miket29
Thu Jul 16, 2020 12:28 pm
Forum: Personal Investments
Topic: My Father in Law gave me $1000 to buy stock/securities
Replies: 20
Views: 2366

Re: My Father in Law gave me $1000 to buy stock/securities

how about a few more details. How old are you? Do you have other savings? Are you working? When might you need the money?
by miket29
Wed Jul 15, 2020 6:04 pm
Forum: Personal Investments
Topic: Need help with my Value and Small-Cap Value tilts
Replies: 14
Views: 1101

Re: Need help with my Value and Small-Cap Value tilts

After reading Swedroe's book "Your Complete Guide to Factor-Based Investing" I was convinced factors make sense and tilted my portfolio. But you'll need to have the courage of your convictions. If you aren't prepared for a decade or more of possible underperformance without throwing in the towel the...
by miket29
Wed Jul 15, 2020 5:47 pm
Forum: Personal Investments
Topic: Yearly Bonus - what to do?
Replies: 28
Views: 2817

Re: Yearly Bonus - what to do?

My 401k is through Fidelity and there is also a Roth option but I don't understand enough about this--I can contribute to this in addition to the 19.5k in 401k? (My employer also generously adds 4% + 7% of base salary to 401k). We have fairly high tax rate now (and keep thinking it can't get any hi...
by miket29
Mon Jul 13, 2020 6:46 pm
Forum: Personal Investments
Topic: Pay off house without paying off house
Replies: 12
Views: 2719

Re: Pay off house without paying off house

Not sure I'm following all the numbers here. First off, when your pension delivers $470/mos to you that is going to be taxable as ordinary income. So it won't match the new mortgage, you'll need to pony up the difference. Also unless you have a death benefit for the pension, if you don't live to age...
by miket29
Mon Jul 13, 2020 6:12 pm
Forum: Personal Investments
Topic: Paying off Mortgage
Replies: 19
Views: 1905

Re: Paying off Mortgage

I take standard deduction and the interest schedule for the rest of the mortgage interest looks like this(with +$500 towards principal): rest of 2020: $481 2021: $642.24 2022: $51 Questions: 1.I am very confused where to park the cash except for in CD's and mortgage pay offs is one of the things th...
by miket29
Mon Jul 13, 2020 5:46 pm
Forum: Personal Investments
Topic: Portfolio review: Net-worth-based glide path?
Replies: 8
Views: 823

Re: Portfolio review: Net-worth-based glide path?

My goal is to retire early with an invested portfolio of around $3m to $5m (depending on how long I can put up with working in a high-stress field.) I expect I’ll reach this range within 5 to 10 years, depending upon job stability and market conditions. The number seems a bit problematic. Using a c...
by miket29
Fri Jun 05, 2020 11:15 pm
Forum: Personal Investments
Topic: Help with 84 year old mom’s Vanguard 4-fund portfolio
Replies: 14
Views: 1494

Re: Help with 84 year old mom’s Vanguard 4-fund portfolio

Her only income is about $18,000 annually from social security. Her Vanguard funds took a big hit, but at this time the funds are nearly back to the highs of mid February (within about $4,000). Although the market has currently rebounded rapidly, She says she doesn’t have the stomach for another $2...
by miket29
Tue May 12, 2020 2:28 pm
Forum: Personal Investments
Topic: Invest or Pay Down Mortgage?
Replies: 14
Views: 941

Re: Invest or Pay Down Mortgage?

if you pay off the mortgage in 3 years then $50K of debt will cost you roughly $5K at 3.3% interest before tax, somewhat less after-tax since it is deductible if you can itemize. This is offset by the return from whatever you do with the $50K (use it to invest, buy more bonds, etc).
by miket29
Tue May 12, 2020 10:39 am
Forum: Personal Investments
Topic: DH Laid Off - can we retire early?
Replies: 40
Views: 4986

Re: DH Laid Off - can we retire early?

relying on your assets only it may not work out. You need a 5-6% withdrawal rate. The rule of thumb has long been said to be 4% as the safe withdrawal rate, and in the low interest rate and high market valuation era the last decade plus some have said the safe rate is 3% (see https://www.bogleheads....
by miket29
Mon May 04, 2020 6:59 pm
Forum: Personal Investments
Topic: 5 year TIPS vs note
Replies: 1
Views: 268

5 year TIPS vs note

In my IRA account I want to hold some 5 year bonds for money I'm sure I won't need for 5 years, so I plan to hold to maturity. What I'd like to do is be protected against unanticipated inflation significantly eating into what I have for retirement in my bond portion. I wanted to check my undertandin...
by miket29
Wed Apr 22, 2020 2:45 pm
Forum: Personal Investments
Topic: still worthwhile to do tax loss harvesting?
Replies: 10
Views: 720

still worthwhile to do tax loss harvesting?

There were a number of threads after the market plunged about tax-loss harvesting. Unfortunately the 2 funds I own in my taxable account declared dividends in late March so I needed to wait until now. For example VTIAX (Vanguard Total International Stock Index Fund) declared a dividend on March 20th...
by miket29
Mon Apr 20, 2020 6:01 pm
Forum: Personal Investments
Topic: Making Extra Mortgage Payments if not planning to live in home forever
Replies: 18
Views: 1917

Re: Making Extra Mortgage Payments if not planning to live in home forever

It is true that a larger payment shortens your mortgage more, and thus saves you more dollars, but it takes longer to get the benefit, so it washes out. Say you have a mortgage at 3.5% with a monthly payment of $1000. If the mortgage has 30 years to go, the principal is $222,694. An extra payment o...
by miket29
Wed Apr 08, 2020 4:44 pm
Forum: Personal Investments
Topic: Follow Bernstein or Bogle
Replies: 99
Views: 7557

Re: Follow Bernstein or Bogle

I just wanted to make a comment about this statement: >We panicked and went to cash in March with 2.3 mil The statement tells us nothing about their entire retirement portfolio nor their real estate holdings or much of anything else. It could be $10 million and they only moved $2.3 million to cash....
by miket29
Sun Apr 05, 2020 8:16 pm
Forum: Personal Investments
Topic: Talk me out of or into increasing international equity allocation
Replies: 61
Views: 3345

Re: Talk me out of or into increasing international equity allocation

seems reasonable to me (of course that's probably because I did it about a year or so ago after learning about Vanguard's recommendation). A lot of investors have home-country bias. Even at 40% Int'l it's still slightly overweighted to US; a neutral portfolio would be 45% Int'l matching VHGEX Vangua...
by miket29
Sun Apr 05, 2020 8:07 pm
Forum: Personal Investments
Topic: Help for 21 year old sister
Replies: 9
Views: 1187

Re: Help for 21 year old sister

You don't mention if she has an emergency fund or other savings, but since she is 21 I'm guessing not. The first thing she should do is pay off any existing credit card debt, next add money to build up an emergency fund. How many months of income it should cover depends on her risk tolerance (it can...
by miket29
Sat Apr 04, 2020 7:23 pm
Forum: Personal Investments
Topic: Layered Emergency Fund
Replies: 30
Views: 2654

Re: Layered Emergency Fund

I’d be interested in hearing folks’ thoughts on a short-term TIPS fund for the OP’s second layer. TIPS can be volatile unless held to maturity. Unless the OP knows today when the emergency will occur it is possible they will need to be sold at a loss. The secondary market is somewhat thin compared ...
by miket29
Sat Apr 04, 2020 4:56 pm
Forum: Investing - Theory, News & General
Topic: might the gov't cause inflation in response to the crisis?
Replies: 6
Views: 735

might the gov't cause inflation in response to the crisis?

The gov't is spending $2 trillion now, and there are columnists saying they should do even more. For example What might be enough? Helicopter money—a term that comes from a Milton Friedman essay in which the Fed tosses money … out of a helicopter. Put in a more technical and accurate manner: fiscal-...
by miket29
Fri Apr 03, 2020 11:42 pm
Forum: Personal Investments
Topic: Tax Loss Harvesting Only Makes Sense if Short-Term?
Replies: 14
Views: 1063

Re: Tax Loss Harvesting Only Makes Sense if Short-Term?

I just meant, if for some reason you had long-term capital gains in a given year (taxed at 15%), and in the same year you TLH the same amount in long-term losses (so saving 15%), there really is no financial benefit, assuming in future years long term capital gains continue to be taxed at the same ...
by miket29
Fri Apr 03, 2020 11:28 pm
Forum: Personal Investments
Topic: Stop funding 401k and fund taxable?
Replies: 10
Views: 1316

Re: Stop funding 401k and fund taxable?

Since a dollar in my taxable is worth more than a dollar in the 401(k), should I stop contributing to the 401(k) and build up my taxable side. I have enough funds to re-balance on the tax deferred side Only if you expect income tax rates to rise in the future. Take the case where income tax rates n...
by miket29
Fri Apr 03, 2020 11:00 pm
Forum: Personal Investments
Topic: Tax Loss Harvesting Only Makes Sense if Short-Term?
Replies: 14
Views: 1063

Re: Tax Loss Harvesting Only Makes Sense if Short-Term?

If I am only getting a 15% tax benefit from TLH (from TLH long-term losses), and assuming when I later sell the assets at LTGC rates (15% tax rate), mathematically the total return is still the same, right? I'm not really sure what you're saying here. Selling at a loss doesn't give you any benefit ...
by miket29
Fri Mar 27, 2020 11:52 am
Forum: Personal Investments
Topic: Pershing Square and credit protection -- can we do this?
Replies: 1
Views: 211

Pershing Square and credit protection -- can we do this?

According to news reports (Ackerman at Pershing Square) turned a $27 million position into $2.6 billion through defensive hedge bets. Pershing Square used credit protection on investment-grade and high-yield bond indexes to land the massive profits. The assets rise in value as the odds of corporate ...
by miket29
Thu Mar 26, 2020 9:34 pm
Forum: Personal Investments
Topic: Will I ever have more than I put in?
Replies: 37
Views: 7815

Re:

I started investing about ten years ago. The money I invested in stock index funds is now worth less today than it was in 1999. I bought and held, and now I am paying the price for the excesses of Wall Street and the corruption of Washington D.C. If I had left the money in a CD or bonds I would hav...
by miket29
Wed Mar 25, 2020 11:08 am
Forum: Personal Investments
Topic: Why not stand on the sidelines for a little while?
Replies: 302
Views: 14789

Re: Why not stand on the sidelines for a little while?

Seems like what the OP is saying echoes the sentiments in this quote from a different thread: with all due respect, I must disagree with what you are saying. I understand that your advice is straight from the Diehard playbook, but this time it is different. If one were to consult with the 10 most re...
by miket29
Mon Mar 23, 2020 1:27 pm
Forum: Non-US Investing
Topic: Portfolio Review Request [Bahrain]
Replies: 11
Views: 962

Re: Should we be switching our allocation at this time

the general sentiment among Bogleheads it not to try to time the market. While Schiller and other indicators indicate what may be the likely return to investors over a decade or more, they were not intended to be used as market timing indices as a little research will show. Of course if you want to ...
by miket29
Sun Mar 22, 2020 3:40 pm
Forum: Personal Investments
Topic: Get out now or ride it out?
Replies: 85
Views: 7196

Re: Get out now or ride it out?

Hindsight is 20/20 and most would have sold off when DOW made the first major drop. Now the question is sell now if/before DOW drops to 15,000 or less. The investment philosophy here might not be a good fit for you. The Boglehead philosophy is for long-term investing with the understanding that mar...
by miket29
Sat Mar 21, 2020 1:17 pm
Forum: Personal Investments
Topic: Dad pulling retirements out of market. Advice Please!
Replies: 84
Views: 10542

Re: Dad pulling retirements out of market. Advice Please!

They need about 20K per year from their portfolio so if they just drew on the bonds they have enough to see them thru the next 20 years, at which time they will be 90. If the market gets back to the level before the crash by the end of those 20 years they'll be no worse off in terms of assets than i...
by miket29
Wed Mar 18, 2020 10:40 pm
Forum: Personal Investments
Topic: sell-all and wash sale rule question
Replies: 39
Views: 2253

sell-all and wash sale rule question

I've looked at the wiki at https://www.bogleheads.org/wiki/Wash_sale and it doesn't specifically cover whether you'd have a wash sale if you sell all the shares, including ones purchased within 30 days prior to the sale of all shares. However the wiki does link to the Fairmark website for additional...
by miket29
Mon Mar 16, 2020 6:53 pm
Forum: Personal Investments
Topic: All in VTSAX, probably not the smartest move I've made, seeking advice
Replies: 57
Views: 5126

Re: All in VTSAX, probably not the smartest move I've made, seeking advice

Yeah. I think you're actually very lucky to have gotten this lesson so early. Now you'll always keep best and worst-case scenarios in mind when allocating assets. Imagine instead turning 50 with a million dollar nest egg built up all in VTSAX and then having that crash in this environment. +1 In 20...
by miket29
Mon Mar 16, 2020 6:23 pm
Forum: Personal Investments
Topic: Tax loss harvest question
Replies: 3
Views: 184

Re: Tax loss harvest question

I'm not a tax attorney, consult one if you want an answer you can rely on if audited :happy VTIAX says it follows this index The fund employs an indexing investment approach designed to track the performance of the FTSE Global All Cap ex US Index, a free-float-adjusted market-capitalization-weighted...
by miket29
Mon Mar 16, 2020 6:12 pm
Forum: Personal Investments
Topic: Is my refusal to address rebalancing right now irresponsible/unbogle? Or can it be justified?
Replies: 19
Views: 1546

Re: Is my refusal to address rebalancing right now irresponsible/unbogle? Or can it be justified?

I'd go with what William Bernstein wrote in "Rational Expectations" in which he compares threshold vs calendar rebalancing. While threshold rebalancing may possibly be better, he writes, he goes on to say it is trickier to do properly. To continue paraphrasing, calendar rebalancing is still effectiv...
by miket29
Mon Mar 16, 2020 5:34 pm
Forum: Personal Investments
Topic: What would you buy on this dip?
Replies: 13
Views: 1415

Re: What would you buy on this dip?

it's interesting to see the word you chose, "dip". Maybe the financial equivalent of the Sapir-Whorf for languages which claims our words influence/determine the thoughts we can have. Calling it a "dip" implies something about it's duration. Had you bought the dip at the opening of the market today ...
by miket29
Sat Mar 07, 2020 10:09 pm
Forum: Personal Investments
Topic: Beneficiary
Replies: 17
Views: 935

Re: Beneficiary

You can set up your bank account as payable-on-death. See https://www.investopedia.com/terms/p/payableondeath.asp I would be very leery about making her a joint owner. It means even though you are alive the money is as much hers as yours and if she were to be sued the account is part of her assets. ...
by miket29
Thu Feb 27, 2020 12:03 am
Forum: Personal Investments
Topic: 38 yr old having 2nd thoughts...
Replies: 93
Views: 10888

Re: 38 yr old having 2nd thoughts...

If you've never actually lived through a protracted bear market, you may think you know how you will react, but you won't know for sure until it happens Not to discourage you from going all stock, but it is not black and white. I was 100% stock during both 2000 and 2008 and am 80/20 now; I never th...
by miket29
Mon Jan 27, 2020 4:13 pm
Forum: Personal Investments
Topic: Another TIPS-for-recent-retirees question from a 3 fund guy
Replies: 11
Views: 1293

Re: Another TIPS-for-recent-retirees question from a 3 fund guy

The problem with a TIPS bond fund, or any bond fund, is that the price changes due to interest rate changes. For a TIPS fund it is only the real interest rate that matters, not the nominal rate, since the difference between the 2 is the rate of inflation and the TIPS bond compensates you for it. I'd...
by miket29
Tue Dec 31, 2019 3:53 pm
Forum: Personal Investments
Topic: Previous employer 401k: rollover or keep?
Replies: 9
Views: 640

Re: Previous employer 401k: rollover or keep?

Might not have the ability to move into a future, better 401k plan than my new employer offers Some companies will allow you to bring money from a rollover IRA into their 401k. Fidelity can allow it (depending on how they set up the plan with the employer). One key, if this is ever going to be a po...
by miket29
Sat Nov 16, 2019 7:42 pm
Forum: Personal Investments
Topic: Mortgage? Pay cash?
Replies: 49
Views: 4169

Re: Mortgage? Pay cash?

I don’t need the liquidity. It is probably emotion that leads me to want it. We do not have a long term care insurance policy. The equity in our house serves that purpose. It would be nice, but maybe not necessary, to have ready access to the funds without selling or refinancing. To me it sounds li...
by miket29
Tue Nov 12, 2019 7:34 pm
Forum: Personal Investments
Topic: BRK.B
Replies: 22
Views: 3239

Re: BRK.B

And then I have a truck load of BRK.B in my Roth IRAs, which I started buying about 8 years ago. They've done okay, but not remarkable compared to, say Amazon or Netflix. I'm a big Buffet fan and feel that BRK.B is as conservative as it gets when it comes to individual stocks, but Berkshire doesn't...
by miket29
Tue Nov 12, 2019 1:29 pm
Forum: Personal Investments
Topic: Dad is looking to move money out of Fisher Investments...need advice
Replies: 16
Views: 3339

Re: Dad is looking to move money out of Fisher Investments...need advice

"My dad indicated to me that he does not want to be in bonds due to the low yields of bonds" I'll quote from Allan Roth (an author on the Boglehead wiki) in an article worth reading Client: I don’t want bonds because they produce little income. Interest rates have to go up from our current all-time ...
by miket29
Thu Oct 24, 2019 6:28 pm
Forum: Personal Investments
Topic: Considering Roth conversions, but would you if you were in my shoes?
Replies: 32
Views: 2728

Re: Considering Roth conversions, but would you if you were in my shoes?

I have a quick question regarding non-deductible contributions to a tIRA and Roth conversions. Before I was smarter than I am now I made some small ND deposits to my tIRA at VG. I have read the wiki and numerous posts here on Roth conversion and frankly, I am still confused. The IRA has about 900K,...
by miket29
Wed Oct 23, 2019 12:35 am
Forum: Personal Investments
Topic: Changing Asset Allocation for the Decumulation Years?
Replies: 7
Views: 865

Re: Changing Asset Allocation for the Decumulation Years?

I don't think anyone knows what the market will do, so you're wise to tune out the noise. At the same time you need to have an asset allocation that makes sense to you given your particular circumstances and preferences. As mentioned above a risk in early retirement is called "sequence of returns". ...