Search found 161 matches

by Quaestner
Sun Jun 23, 2019 1:57 pm
Forum: Personal Investments
Topic: Rebalancing to Oblivion
Replies: 39
Views: 2737

Re: Rebalancing to Oblivion

As I've learned more about investing, I've sliced and diced the portfolio to make it more tax efficient - (and more complicated to rebalance). Pros and cons. The more I learn, the more uncertain I grow about the alleged tax-efficiency of locating assets in various accounts. Logically, one should ap...
by Quaestner
Sun Jun 23, 2019 1:51 pm
Forum: Personal Investments
Topic: Rebalancing to Oblivion
Replies: 39
Views: 2737

Re: Rebalancing to Oblivion

It seems like we need a floor of bonds that we won’t go below. I think we would not be able to stick to a rebalancing plan if our portfolio dropped by much more than half. OK. This doesn't stand the test of logic. Instead of setting a floor of bonds, it's best to reduce the stock allocation before ...
by Quaestner
Sun Jun 23, 2019 1:44 pm
Forum: Personal Investments
Topic: Rebalancing to Oblivion
Replies: 39
Views: 2737

Re: Rebalancing to Oblivion

OP, What is the current rebalance timeframe? Annually, semi annually? If you set it to semi semi annually or longer, you can avoid any historical further declines of another fifty percent. Thanks for weighing in on this. Once a year I look at things very carefully for rebalancing. But... I peer at ...
by Quaestner
Sun Jun 23, 2019 1:31 pm
Forum: Personal Investments
Topic: Rebalancing to Oblivion
Replies: 39
Views: 2737

Re: Rebalancing to Oblivion

Perhaps give more thought to rebalancing technique. Maybe take advantage of TIME as another variable. Some suggest moving only 10% of deviation from target per month. This tends to limit the sucking effect into Stocks in a declining market and is a way of taking note of momentum when it is having a...
by Quaestner
Sun Jun 23, 2019 1:24 pm
Forum: Personal Investments
Topic: Rebalancing to Oblivion
Replies: 39
Views: 2737

Re: Rebalancing to Oblivion

So, what I’m wondering is – is our 50/50 allocation too high if we can’t stomach our portfolio dropping by much more than half? Is it reasonable to describe a point in our IPS where we stop rebalancing into stocks? Very unlikely that a 50/50 portfolio would drop by half. As others have mentioned, t...
by Quaestner
Sun Jun 23, 2019 1:21 pm
Forum: Personal Investments
Topic: Rebalancing to Oblivion
Replies: 39
Views: 2737

Re: Rebalancing to Oblivion

One of my summer projects is to write our IPS. We think we can avoid selling stocks in during a bear market, and can in fact rebalance during stock declines. I described to DW what a 50% market decline might do to our (50/50) portfolio, and she was ok with the idea of rebalancing in to this size be...
by Quaestner
Sat Jun 22, 2019 5:45 pm
Forum: Personal Consumer Issues
Topic: Prius vs Prius Prime (plug-in)
Replies: 75
Views: 3812

Re: Prius vs. Prius Prime

Thank you all. Here's a slightly different question: why would one buy the regular Prius over the Prius Plug-in if they have a low electric rate? Scared of new tech? Want to appear green, but not "ultra-green"? Don't drive enough to make it cost effective? Drive so much the 30 mile electric range i...
by Quaestner
Sat Jun 22, 2019 5:18 pm
Forum: Personal Investments
Topic: Rebalancing to Oblivion
Replies: 39
Views: 2737

Re: Rebalancing to Oblivion

OP, I set my rebalancing limit at 5 years of expense. I will stop selling the bond to buy the stock when it reaches the limit of 300K. KlangFool There's a diversity of opinion on this subject! Thanks for sharing your philosophy. I may need to revisit what my true minimum expenses are. Is self fundi...
by Quaestner
Sat Jun 22, 2019 5:09 pm
Forum: Personal Investments
Topic: Rebalancing to Oblivion
Replies: 39
Views: 2737

Re: Rebalancing to Oblivion

Why do you have the AA that you have? The purpose of a AA is to insure that you have the money you need to fund your retirement. You say that your pensions and SS will fund your everyday retirement expenses and that your investments are for additional things like long term care, travel, and childre...
by Quaestner
Sat Jun 22, 2019 5:01 pm
Forum: Personal Investments
Topic: Rebalancing to Oblivion
Replies: 39
Views: 2737

Re: Rebalancing to Oblivion

I know we can’t keep rebalancing into oblivion – so what might I do instead? We have most of our money invested in a target retirement account so it rebalances automatically daily we we do not even see it. This means that we never need to make any decisions about doing a big rebalance. Any of the L...
by Quaestner
Sat Jun 22, 2019 4:57 pm
Forum: Personal Investments
Topic: Rebalancing to Oblivion
Replies: 39
Views: 2737

Re: Rebalancing to Oblivion

Consider that there are both personal and financial "black swan" events that can dent a portfolio far more than a market downturn. So, it would be prudent to adjust your allocation and overall financial strategy to accommodate those scenarios. A random thought. j :happy You got that right! But does...
by Quaestner
Sat Jun 22, 2019 3:59 pm
Forum: Personal Investments
Topic: Rebalancing to Oblivion
Replies: 39
Views: 2737

Re: Rebalancing to Oblivion

So, what I’m wondering is – is our 50/50 allocation too high if we can’t stomach our portfolio dropping by much more than half? Is it reasonable to describe a point in our IPS where we stop rebalancing into stocks? Very unlikely that a 50/50 portfolio would drop by half. As others have mentioned, t...
by Quaestner
Sat Jun 22, 2019 3:48 pm
Forum: Personal Investments
Topic: Rebalancing to Oblivion
Replies: 39
Views: 2737

Re: Rebalancing to Oblivion

Why not just cap the stocks at 50%? (i.e. rebalance when stocks exceed 50%, but just take a walk when the market plunges) I honestly hadn't thought of that. I've always had it in mind to buy low and sell high via rebalancing, but I know there are some "FIREsales" where I would/should(?) hold onto m...
by Quaestner
Sat Jun 22, 2019 2:49 pm
Forum: Personal Investments
Topic: Rebalancing to Oblivion
Replies: 39
Views: 2737

Re: Rebalancing to Oblivion

I'd find a way to get comfortable (both of you) with the concept of "rebalancing into oblivion". I use that phrase tongue-in-cheek, but rebalancing is crucial to REDUCING your risk in retirement. An emotional decision to avoid rebalancing, for any reason, is going to make your retirement riskier th...
by Quaestner
Sat Jun 22, 2019 2:36 pm
Forum: Personal Investments
Topic: Rebalancing to Oblivion
Replies: 39
Views: 2737

Re: Rebalancing to Oblivion

I am perfectly comfortable for a retiree not to rebalance into stocks when stocks take a dip. Probably, however, when such a thing happens and one sells assets to take a withdrawal that sale would come from bonds, thus is "closet" rebalancing. Thanks dbr! (I kind of do this with my RMD - take it fr...
by Quaestner
Sat Jun 22, 2019 12:50 pm
Forum: Personal Investments
Topic: Rebalancing to Oblivion
Replies: 39
Views: 2737

Re: Rebalancing to Oblivion

Dottie57 wrote:
Sat Jun 22, 2019 12:39 pm
I think your rebalance plan is very reasonable. You don’t want to spend all Bonds on stocks.
Thank you Dottie57! It's good just to bounce my ideas off of someone and get some feedback.
by Quaestner
Sat Jun 22, 2019 12:30 pm
Forum: Personal Investments
Topic: Rebalancing to Oblivion
Replies: 39
Views: 2737

Rebalancing to Oblivion

One of my summer projects is to write our IPS. We think we can avoid selling stocks in during a bear market, and can in fact rebalance during stock declines. I described to DW what a 50% market decline might do to our (50/50) portfolio, and she was ok with the idea of rebalancing in to this size bea...
by Quaestner
Sat Jun 22, 2019 10:16 am
Forum: Personal Investments
Topic: How did you overcome your fear of investing?
Replies: 33
Views: 2257

Re: How did you overcome your fear of investing?

They amount to no more than short unfinished sentences like “I’m worried I’ll lose money and...” It helps me to think of the money I've invested as "spent". I've bought bits of businesses, and I trust other smart people to do their best with the business they run. Not thinking of my portfolio as do...
by Quaestner
Fri Jun 21, 2019 12:48 pm
Forum: Personal Investments
Topic: Asset Allocation Question.
Replies: 14
Views: 1379

Re: Asset Allocation Question.

I'm tempted to advise you stay with a plan that matches your "SteadyEddie" moniker - and just "stay the course" you've set! But, there's some (non-financial) value in the feeling of a paid-off mortgage in addition to the guaranteed return you mention. But I do wonder - does your decision need to be ...
by Quaestner
Sun Jun 16, 2019 2:32 pm
Forum: Investing - Theory, News & General
Topic: Why do large personal portfolios include bonds?
Replies: 164
Views: 11850

Re: Why do large personal portfolios include bonds?

Maybe because their owners realize the sample size for stock market returns is not that large and the future is unknowable? We could have a multi-year "super-bear" market, so even if one is super-rich, bonds in the portfolio might be useful. Can you explain what you mean by "multi-year super-bear m...
by Quaestner
Sun Jun 16, 2019 1:32 pm
Forum: Investing - Theory, News & General
Topic: Why do large personal portfolios include bonds?
Replies: 164
Views: 11850

Re: Why do large personal portfolios include bonds?

Maybe because their owners realize the sample size for stock market returns is not that large and the future is unknowable? We could have a multi-year "super-bear" market, so even if one is super-rich, bonds in the portfolio might be useful.
by Quaestner
Sat Jun 15, 2019 2:33 pm
Forum: Personal Consumer Issues
Topic: Do you repair your own appliances?
Replies: 65
Views: 3431

Re: Do you repair your own appliances?

OP - I'm not as ambitious as many of the posters here, but I did watch a youtube video that showed me how to easily remove and clean the pump filter on my washer. Cleaning out the bits collected on the filter (that came from poorly emptied pockets) restored the ability of my washer to drain properly...
by Quaestner
Thu Jun 13, 2019 5:00 pm
Forum: Personal Consumer Issues
Topic: Best source for buying Gold Coins
Replies: 55
Views: 3943

Re: Best source for buying Gold Coins

Here's my two-cent piece: American Eagles are boring. If you really want to give a gold coin, consider something with more historical or collector interest. Saint-Guadens $20? Look at Ampex "pre-1933 U.S. Gold" gold coins for some easy to purchase examples from our nation's history. You will pay mor...
by Quaestner
Sat Jun 08, 2019 1:34 pm
Forum: Personal Finance (Not Investing)
Topic: Attn: teachers....Daughter considering 80% teaching position. Good idea?
Replies: 64
Views: 4995

Re: Attn: teachers....Daughter considering 80% teaching position. Good idea?

The first year of teaching for many folks can be overwhelming and many folks quit. Working in a position where you "fit", matters. Looking back, if I could have had an .8 contract my first year, it would have been a good thing. More time to reflect, prepare, and learn the job in a slightly less stre...
by Quaestner
Tue May 28, 2019 7:37 pm
Forum: Investing - Theory, News & General
Topic: How can I check my portfolio as little as possible?
Replies: 69
Views: 3187

Re: How can I check my portfolio as little as possible?

I've shared your challenge. It's helped me to reframe my interpretation of my portfolio. When I check on it, it's listed in dollars. But I try to remember that it's not dollars, but shares of 1000's of businesses. I'm learning to not worry about what others think the value of the businesses might be...
by Quaestner
Mon May 27, 2019 6:01 pm
Forum: Investing - Theory, News & General
Topic: Excellent Larry Swedroe Podcast Interview: Factors For The Long Run
Replies: 337
Views: 17606

Re: Excellent Larry Swedroe Podcast Interview: Factors For The Long Run

Random Walker - I always appreciate your summaries and sharing of Larry's writings. Even if I don't take action, I like to learn. Please continue!
by Quaestner
Mon May 27, 2019 5:42 pm
Forum: Personal Finance (Not Investing)
Topic: Funding nieces' Roth IRAs
Replies: 10
Views: 931

Re: Funding nieces' Roth IRAs

The Vanguard 2060 target date fund might be a better choice since the money could be left in that fund indefinitely and it might lead them to make future contributions to it. It is 90% stock and 10% bonds and it includes international investments. +1 That's what I did with my daughter. We contacted...
by Quaestner
Mon May 27, 2019 5:30 pm
Forum: Personal Finance (Not Investing)
Topic: Teaching jobs
Replies: 79
Views: 4680

Re: Teaching jobs

It may be worth it for her to make the rounds at schools with her resume and try to connect with an administrator. She could follow up at the school later. Don't just apply at the district level, make your interest known at the school level. Unanticipated job changes happen during the summer, and it...
by Quaestner
Sun May 26, 2019 7:27 pm
Forum: Personal Consumer Issues
Topic: Worth it to upgrade 2nd car in 1.5 car household?
Replies: 22
Views: 1680

Re: Worth it to upgrade 2nd car in 1.5 car household?

Sure, you could save some money by delaying the replacement, but life get's busier with a kid. Do you think you'll soon use the car more? You have legit reasons to upgrade, so it's ok to spend some money on this (given that you have the money). Money does not always need to be about "needs". "Wants"...
by Quaestner
Sun May 26, 2019 6:57 pm
Forum: Personal Finance (Not Investing)
Topic: “Upsizing” are we foolish?
Replies: 62
Views: 7216

Re: “Upsizing” are we foolish?

You've positioned yourself financially quite well in my estimation. Given what you've told us, I think you should give yourself permission to trade some stocks and bonds for some additional personal real estate (and some extra comfort). Quality of life matters!
by Quaestner
Sat May 25, 2019 2:38 pm
Forum: Investing - Theory, News & General
Topic: How to retire early by targeting a low/zero balance at the end of life?
Replies: 48
Views: 5289

Re: How to retire early by targeting a low/zero balance at the end of life?

If you have no desire to leave an estate, annuities (SPIA) can be a good option once you are older. +1. Those mortality credits will give you more spending power. You still need to think about inflation, though. One option is a deferred income annuity that doesn't kick in until you're a certain age...
by Quaestner
Sat May 25, 2019 2:30 pm
Forum: Personal Consumer Issues
Topic: Prius Prime plug in
Replies: 22
Views: 2040

Re: Prius Prime plug in

I own a 2017 Prius Prime. I'm happy with it. We mostly drive it in town, and with the 30ish EV range (more or less depending on season), I don't need to fill up except to keep the gas fresh. We have taken it on a couple 450 mile (one way), trips and we did not find it uncomfortable. With the two of ...
by Quaestner
Mon May 20, 2019 4:56 pm
Forum: Personal Investments
Topic: 5.5% Load 403(b) Roth vs Low Cost Taxable Account
Replies: 81
Views: 3537

Re: 5.5% Load 403(b) Roth vs Low Cost Taxable Account

If it was me, I'd rather my government take a bit than pay that load to that company! You know you can invest cheaply, with tax efficiency, on your own. You also know that if kids inherit this, they will avoid the capital gains (other than the tiny dribbles that may be distributed while you are aliv...
by Quaestner
Sun May 19, 2019 12:48 pm
Forum: Personal Investments
Topic: Taxable Account?
Replies: 10
Views: 1485

Re: Taxable Account?

OP, what some of the posters may be saying is that, unless you anticipate a pension you're not telling us about, you may have a low marginal tax rate when you retire. If this is true, the future RMD on a regular 401k (not a Roth), will not face too much tax. As such, it may be better to take the tax...
by Quaestner
Sat May 18, 2019 4:08 pm
Forum: Personal Consumer Issues
Topic: $ Decisions: environmental, save the planet, organic, etc
Replies: 32
Views: 1733

Re: $ Decisions: environmental, save the planet, organic, etc

William MacAskill's "Doing Good Better: How Effective Altruism Can Help You Help Others, Do Work that Matters, and Make Smarter Choices about Giving Back" was a book that helped me think about some of these issues. Sometimes the ROI is higher when I don't spend on myself.
by Quaestner
Fri May 17, 2019 5:55 pm
Forum: Personal Investments
Topic: Best way to deploy $450,000 of IRA money right now
Replies: 30
Views: 2195

Re: Best way to deploy $450,000 of IRA money right now

Here you go - keeping it simple: Assuming 40/60 is truly the goal, put it all in Vanguard's Life Strategy Income fund immediately (20 % Stocks). In one year, move half this money to Life Strategy Conservative Growth (about 40% stocks in this one - so overall investments are about 30% stocks now). Th...
by Quaestner
Fri May 17, 2019 5:26 pm
Forum: Personal Investments
Topic: Confused about simplicity vs tax efficiency
Replies: 19
Views: 1599

Re: Confused about simplicity vs tax efficiency

Sounds like you have a plan. Being more tax efficient with your new 200K investment is a great place to start. You can also "turn off" the automatic reinvestment of dividends and capital gains in the life-strategy fund. Instead of feeding them back into it, they can be directed towards, more tax eff...
by Quaestner
Fri May 17, 2019 4:55 pm
Forum: Personal Investments
Topic: Global vs US REITs
Replies: 4
Views: 787

Re: Global vs US REITs

I'm not counting on correlations to be predictable, but I choose to put put 8-10% of our equity allocation in Reits. Like Angst, I use VNQ and VNQI (60%/40%). You won't get a consensus here, but that's what I do, FWIW.
by Quaestner
Thu May 16, 2019 5:20 pm
Forum: Investing - Theory, News & General
Topic: Invest or Payoff Home
Replies: 38
Views: 2859

Re: Invest or Payoff Home

This doesn't have to be an either/or decision. Why not accelerate your mortgage payments and simultaneously invest with a sensible (for you) asset allocation?
by Quaestner
Thu May 16, 2019 5:15 pm
Forum: Investing - Theory, News & General
Topic: We’ve won the game...but how do we stop playing?
Replies: 76
Views: 8198

Re: We’ve won the game...but how do we stop playing?

Maybe you and grandma share some quality time playing with some Monte Carlo sims?

If she's rich enough to whether the storm, and she really has the goal of helping out future generations, maybe 80/20 is indeed the correct asset allocation?
by Quaestner
Wed May 15, 2019 5:45 pm
Forum: Personal Finance (Not Investing)
Topic: Move out or stay at my parents?
Replies: 70
Views: 4826

Re: Move out or stay at my parents?

"Advice is what we ask for when we already know the answer but wish we didn’t." - Erica Jong
by Quaestner
Wed May 15, 2019 5:40 pm
Forum: Personal Consumer Issues
Topic: What non frugal things save money?
Replies: 80
Views: 9544

Re: What non frugal things save money?

It is non-frugal to give my daughter Roth IRA money. (She graduated from nursing school this week!) Although the jury is still out whether she has the discipline to leave it alone, it may save money compared to leaving it in a taxable account (from which she might later receive a gift or inherit).
by Quaestner
Wed May 15, 2019 5:17 pm
Forum: Personal Investments
Topic: 403b vs Roth 403b?
Replies: 20
Views: 1195

Re: 403b vs Roth 403b?

If you're an optimist, assume you will move on up the hospital hierarchy and make much more money later in your career. If this is true, and you've saved as you plan, you'll have a hefty RMD from the 403b (that's taxable, as may be your SS income). For that reason, you might like the Roth. Pay your ...
by Quaestner
Wed May 15, 2019 5:00 pm
Forum: Personal Investments
Topic: If you are already wealthy, what keeps you motivated?
Replies: 101
Views: 11573

Re: If you are already wealthy, what keeps you motivated?

You seem good at many things - and making money is one of them. I get some motivation from helping others. You might be able to help lots of others by making more money?
by Quaestner
Sun May 05, 2019 10:23 am
Forum: Personal Investments
Topic: OH no, ANOTHER "Should I pay off my Mortgage with Taxable acct" question, with a bit of a twist?
Replies: 28
Views: 2347

Re: OH no, ANOTHER "Should I pay off my Mortgage with Taxable acct" question, with a bit of a twist?

How much tax will you pay when you sell things in your taxable account to do this? I don't think you've provided enough detail for us to give you best guidance. I will note that while home equity is part of our net worth, many of us don't include home equity as part of our asset allocation. Without ...
by Quaestner
Sat May 04, 2019 9:43 pm
Forum: Personal Finance (Not Investing)
Topic: Should I sell stock and trigger capital gains or spend my emergency fund?
Replies: 15
Views: 1770

Re: Should I sell stock and trigger capital gains or spend my emergency fund?

Since you've been buying regularly, I wondered if any of the lots of the index funds might have a loss? Any chance to tax loss harvest? Or sell some lots with minimal gains? Do all the apple shares have the same cost basis? Maybe sell the ones with the least gain? You know, you could invent an optio...
by Quaestner
Tue Apr 30, 2019 5:12 pm
Forum: Investing - Theory, News & General
Topic: Target Date Funds doing it backwards?
Replies: 44
Views: 4863

Re: Target Date Funds doing it backwards?

I saw the title and I thought someone was proposing a target date fund with a rising (rather than declining) equity glide path! Oh well. However, I do think there's a (small) market for that. Maybe someone who recently retired wants less volatility, but recognizes the need for more stocks as time go...
by Quaestner
Thu Apr 25, 2019 5:18 pm
Forum: Personal Investments
Topic: What to do? Sitting on the bench since October
Replies: 66
Views: 7304

Re: What to do? Sitting on the bench since October

OP, assuming your original asset allocation was correct (which I'm skeptical of), then you made a poor decision (cashing out), and haven't had (as yet), an awful result. If you wait long enough the result of your poor decision may yet be great (or truly awful) - but I'll still say cashing out was a ...
by Quaestner
Thu Apr 25, 2019 4:58 pm
Forum: Personal Finance (Not Investing)
Topic: Inflation assumption for planning
Replies: 24
Views: 1294

Re: Inflation assumption for planning

I sometimes like to guesstimate the future in real dollars. I think that means that the expected return on my investments must also be adjusted to be net of inflation. So when I play with calculators, I assume zero inflation, and a much lower investment return. It gives one a different perspective (...
by Quaestner
Mon Apr 22, 2019 5:14 pm
Forum: Personal Investments
Topic: Should I be in Bonds?
Replies: 20
Views: 1608

Re: Should I be in Bonds?

You are correct - my bad!