Search found 3455 matches

by heyyou
Fri Jul 19, 2019 11:57 pm
Forum: Personal Investments
Topic: 100% Stock in ROTH
Replies: 8
Views: 806

Re: 100% Stock in ROTH

Roth IRA (RIRA) with only stock funds in it, for more growth with the only tax on the initial contributions, none on withdrawals with their tax free growth. Traditional IRA (tIRA) with all of your bond holdings (plus any additional stock funds) for lesser total growth, to keep the RMD taxation lower...
by heyyou
Fri Jul 19, 2019 11:45 pm
Forum: Personal Finance (Not Investing)
Topic: Are RMDs that bad if you're not an over-saver?
Replies: 167
Views: 16941

Re: Are RMDs that bad if you're not an over-saver?

How to brag about high income in retirement, at the country club? "Taxes are killing me."
by heyyou
Fri Jul 19, 2019 11:40 pm
Forum: Personal Investments
Topic: with 10K limit is an I-bond worth it?
Replies: 6
Views: 657

Re: with 10K limit is an I-bond worth it?

by fabdog » Fri Jul 19, 2019 6:51 pm There's no rule that says you can't keep buying them after you retire at $15K/year ($10K Treasury Direct and $5K with your tax return) as you manage your asset allocation. Inflation protection, tax deferred, state tax free. Do it for a dozen more years to see if...
by heyyou
Fri Jul 19, 2019 11:20 pm
Forum: Investing - Theory, News & General
Topic: Found at last: the Optimal Portfolio
Replies: 5
Views: 1198

Re: Found at last: the Optimal Portfolio

Having held equal slices of those and several other equity sub-asset classes, I always held some of the worst and some of the best. That suits my suite of behavioral biases, others should allocate to whatever suits them. I wonder how the portfolio of those broad market choices compare to Trev h's po...
by heyyou
Fri Jul 19, 2019 10:46 pm
Forum: Personal Investments
Topic: Bad time to enter the market?
Replies: 40
Views: 3542

Re: Bad time to enter the market?

Successful investing is mostly about buying anytime you can, then tolerating the market fluctuations (without selling) for a long period. By then, the irregular growth amounts to a good gain. I was buying shares in the 1980s at higher prices than in the 1970s, but 30 years later, the growth has been...
by heyyou
Thu Jul 18, 2019 11:33 pm
Forum: Personal Investments
Topic: Retirement Portfolio for our Over-Valued times (2020 retirement)
Replies: 8
Views: 1134

Re: Retirement Portfolio for our Over-Valued times (2020 retirement)

Michael H. McClung suggests starting retirement with near a 50/50 stock/bond allocation, then spending from only the bonds until the retiree can rebalance when the stock portion has grown to 110% (less optimal) or 120% (more optimal) of the stock funds' retirement day value. That buffers whatever th...
by heyyou
Thu Jul 18, 2019 1:59 pm
Forum: Personal Investments
Topic: Gold?
Replies: 44
Views: 2383

Re: Gold?

If one has enough of other assets (spending only from bonds?) relative to expenses, gold is not necessary. Many here can reduce expenses as needed (spending a somewhat fixed percentage of recent annual portfolio value) so striving to maintain a specific asset level in a fluctuating market, is not ne...
by heyyou
Thu Jul 18, 2019 12:32 am
Forum: Personal Finance (Not Investing)
Topic: Are RMDs that bad if you're not an over-saver?
Replies: 167
Views: 16941

Re: Are RMDs that bad if you're not an over-saver?

Are RMDs that bad if you're not an over-saver? Only if you have forgotten what "tax deferred" means. Note that the amount of the tax deductions has also compounded in value over that period. The angst about the taxation in retirement, is analogous to long term renters complaining about having paid ...
by heyyou
Thu Jul 18, 2019 12:04 am
Forum: Personal Investments
Topic: Those that have an "Anti-Boglehead" investment account, what are your "risky" plays?
Replies: 123
Views: 10786

Re: Those that have an "Anti-Boglehead" investment account, what are your "risky" plays?

heyyou wrote: ↑ Entire portfolio is ten equal slices of various foreign and domestic index funds. Not as high risk as individual stocks but far from a cap-weighted total market fund. Sector funds? No, foreign and domestic index funds with a little emerging markets, large cap and small cap, blend an...
by heyyou
Wed Jul 17, 2019 11:40 pm
Forum: Personal Investments
Topic: Those that have an "Anti-Boglehead" investment account, what are your "risky" plays?
Replies: 123
Views: 10786

Re: Those that have an "Anti-Boglehead" investment account, what are your "risky" plays?

Entire portfolio is ten equal slices of various foreign and domestic index funds. Not as high risk as individual stocks but far from a cap-weighted total market fund.
by heyyou
Wed Jul 17, 2019 11:33 pm
Forum: Personal Investments
Topic: retirement portfolio income
Replies: 10
Views: 1513

Re: retirement portfolio income

McClung suggests starting retirement with near a 50/50 allocation, then spending from bond funds first, to skip the sequence risk of the first decade of retirement, which is having a stock market crash early in retirement. That crash could significantly damage the value of your equity funds if extra...
by heyyou
Sat Jul 13, 2019 12:40 am
Forum: Investing - Theory, News & General
Topic: Three problems with probability of ruin
Replies: 13
Views: 2004

Re: Three problems with probability of ruin

how do people adjust psychologically if they spent their working years with a steady paycheck? Living within your means does not end on retirement day. Wouldn't it be wise to adapt your spending as your asset size varies? With SS and a sizable bond allocation, most retirees can tolerate some spendi...
by heyyou
Fri Jul 12, 2019 12:50 am
Forum: Investing - Theory, News & General
Topic: Three most important elements of investment success
Replies: 67
Views: 5555

Re: Three most important elements of investment success

If you choose a job/career that makes little money you can follow 1 through 3 to your hearts content and never be wealthy. (Very little excess to save) If you choose a job/career that makes a high salary - you can make lots of mistakes before you implement rules 1 through 3 and still become very we...
by heyyou
Fri Jul 12, 2019 12:13 am
Forum: Investing - Theory, News & General
Topic: Fidelity Expands Their Index Fund Lineup
Replies: 61
Views: 6571

Re: Fidelity Expands Their Index Fund Lineup

Why start a new Small Growth fund? Yes, it is a slice of the total market, but it is not a good slice to own. Has it done well recently, so it doesn't look as bad as it is?
by heyyou
Thu Jul 11, 2019 3:43 am
Forum: Personal Consumer Issues
Topic: Volunteer suggestions
Replies: 55
Views: 2599

Re: Volunteer suggestions

On my daily walks on the roads in my somewhat forested, rural neighborhood, I pick up roadside litter. I was curious about a trans-state hiking trail, so I went to a trail maintenance event. Ten years later, after working a couple of days per week, year 'round, I finally lost interest in dealing wit...
by heyyou
Thu Jul 11, 2019 2:43 am
Forum: Personal Investments
Topic: Not happy with one FA allocation: PBRIX
Replies: 37
Views: 1907

Re: Not happy with one FA allocation: PBRIX

When you open the account at Vanguard (VG), they will request what you tell them to, from your new advisor. When he gets that request, he will call you, hoping that you will rescind it, but he has to comply with it and send the money to VG, unless you change your request. You get to make your decisi...
by heyyou
Thu Jul 11, 2019 2:03 am
Forum: Investing - Theory, News & General
Topic: No advantage to doing Roth conversions?
Replies: 21
Views: 2726

Re: No advantage to doing Roth conversions?

As early retirees in a low cost area, with far below six-digit retirement income, and a history of delayed gratification paying well, Roth conversions suited us. Your mileage may vary due to a plethora of reasons. Now, due to a health problem, the survivor will have a reduced tax load as a single pa...
by heyyou
Thu Jul 11, 2019 1:22 am
Forum: Investing - Theory, News & General
Topic: S&P Indices: Blending Factors In Smart Beta Portfolios
Replies: 9
Views: 866

Re: S&P Indices: Blending Factors In Smart Beta Portfolios

Seems like using the 500 for factor exposure, is a good middle ground between full slice and dice and a total market portfolio. accepting increased tracking error resulted in a more efficient portfolio. There is the risk and reward. Dave, I was enthusiastic until "This suggests potential for strateg...
by heyyou
Thu Jul 11, 2019 12:23 am
Forum: Personal Consumer Issues
Topic: Retirees, did your level of luxury increase faster than you anticipated?
Replies: 47
Views: 4865

Re: Retirees, did your level of luxury increase faster than you anticipated?

Thirteenth year of retirement, and our level of luxury has not increased, possibly for these reasons: We didn't need to cut back at retirement, since we waited for the pension credits to catch up to our conservative spending level while working. The 2008 Crash helped us pay attention to our retireme...
by heyyou
Mon Jul 08, 2019 2:52 am
Forum: Personal Investments
Topic: Where to invest new cash at this time of all time high market
Replies: 24
Views: 2672

Re: Where to invest new cash at this time of all time high market

$10K per month for 25 months. When you forget, just do it when you remember since it is only $10K each time. Caught a falling knife: I bought into a commodities fund when it was down 10% from a recent high. Sold it eight years later for maybe half my cost, since it had still not recovered. The rest ...
by heyyou
Mon Jul 08, 2019 2:39 am
Forum: Investing - Theory, News & General
Topic: A Concern about TSM as the only stock exposure for retirees
Replies: 2
Views: 894

A Concern about TSM as the only stock exposure for retirees

Since the year 2000 Crash, I have tried to avoid the amount of Large Growth (LG) exposure as seen in TSM (Total Stock Market fund) and the S&P500 index fund, during a run up to a crash. If you have been retired for a long time, those price fluctuations in highly appreciated shares that were purchase...
by heyyou
Sat Jul 06, 2019 5:12 pm
Forum: Investing - Theory, News & General
Topic: Historically has it been bad to withhold further contributions 8 years after the beginning of a bull market?
Replies: 36
Views: 3464

Re: Historically has it been bad to withhold further contributions 8 years after the beginning of a bull market?

Historically has it been bad to withhold further contributions 8 years after the beginning of a bull market? No problem if history exactly repeats itself, but it hasn't ever done that. Assuming that you are buying both stock fund shares and bond fund shares every pay period: Consider rebalancing a ...
by heyyou
Sat Jul 06, 2019 3:48 pm
Forum: Investing - Theory, News & General
Topic: Why factor investing isn't working
Replies: 484
Views: 20164

Re: Why factor investing isn't working

Sounds like the better performance will return as soon as the shine is gone. Are we surprised about cyclical returns and/or performance chasing in the stock markets? Careful study of history shows some evidence of a specific return, then greedy investors want to soon harvest the long term average of...
by heyyou
Thu Jul 04, 2019 12:47 am
Forum: Personal Investments
Topic: Any idea why S&P 600 is not so hot these days?
Replies: 19
Views: 2614

Re: Any idea why S&P 600 is not so hot these days?

The stock market forecast of "It will fluctuate" was said, more than 90 years ago.
by heyyou
Thu Jul 04, 2019 12:42 am
Forum: Investing - Theory, News & General
Topic: Misbehaviour of markets and the Black Swan
Replies: 87
Views: 7545

Re: Misbehaviour of markets and the Black Swan

Carol88888
All I need to know is that an index strategy will probably do better than other strategy I could reasonably execute.
Suits me.
by heyyou
Sun Jun 30, 2019 2:50 am
Forum: Investing - Theory, News & General
Topic: What do you hold in your IRA and Why?
Replies: 48
Views: 3338

Re: What do you hold in your IRA and Why?

For those who are still working, store your higher growth stock funds in your 401k and IRAs so the growth will not be taxed until much later when you are spending the money. There is an annual limit on IRA contributions, and on 401k tax deferred contributions , but not on the total amount to which e...
by heyyou
Sun Jun 30, 2019 1:59 am
Forum: Personal Finance (Not Investing)
Topic: Did Retirement Spending go as You Planned?
Replies: 47
Views: 4682

Re: Did Retirement Spending go as You Planned?

Did Retirement Spending go as You Planned? Our answer is yes, since we expected to adapt to our income throughout retirement, so far, so good. Our necessary spending is far lower than our planned retirement income. The 2000 Crash kept me from retiring too soon, so we were qualified for low cost hea...
by heyyou
Sun Jun 30, 2019 12:18 am
Forum: Investing - Theory, News & General
Topic: "Alice's Adventures in Factorland"
Replies: 209
Views: 9956

Re: "Alice's Adventures in Factorland"

Confirmation bias has been displayed by a TSM advocate. My suggestion is for others to do what suits them, but for them to give up trying to convince anyone about the superiority of their own allocation choices. It is noticeable here that the amount of the bond allocation is a personal choice, but a...
by heyyou
Sat Jun 29, 2019 11:06 pm
Forum: Investing - Theory, News & General
Topic: The Best of Strategies for the Worst of Times: Can Portfolios be Crisis Proofed?
Replies: 21
Views: 2493

Re: The Best of Strategies for the Worst of Times: Can Portfolios be Crisis Proofed?

Risk is immutable. Notice how every strategy has imperfections. Extra money is the solution. Either over save before retiring, or under spend during retirement. Not what you wanted to hear.
by heyyou
Sat Jun 29, 2019 2:51 am
Forum: Personal Investments
Topic: Does anyone tilt away from the industry they work in?
Replies: 37
Views: 1955

Re: Does anyone tilt away from the industry they work in?

Having worked for a transportation company during oil price surges, and that business became a S&P500 stock, that was two reasons to tilt away from large cap index exposure, tilted away, but not zero exposure.
by heyyou
Sat Jun 29, 2019 2:30 am
Forum: Investing - Theory, News & General
Topic: The Best of Strategies for the Worst of Times: Can Portfolios be Crisis Proofed?
Replies: 21
Views: 2493

Re: The Best of Strategies for the Worst of Times: Can Portfolios be Crisis Proofed?

If a person has enough emergency fund and fixed income for 5 to 10 years of expense, it is good enough. Well said. Expecting to adapt is better than depending on complex allocation yoga. By keeping your necessary expenses low in retirement, you can reduce your spending when your portfolio value has...
by heyyou
Wed Jun 26, 2019 9:14 pm
Forum: Investing - Theory, News & General
Topic: Dimensional Funds versus Vanguard
Replies: 27
Views: 2932

Re: Dimensional Funds versus Vanguard

My opinion is whatever Robert T writes about factors, is the definitive info.
by heyyou
Wed Jun 26, 2019 8:56 pm
Forum: Personal Finance (Not Investing)
Topic: How did you lower your annual expenses?
Replies: 145
Views: 12748

Re: How did you lower your annual expenses?

"How did you lower your annual expenses?" By deciding that we did not need more of what money buys. When I want something, after a couple of weeks, I want something different whether I bought the first "want" or not. I was laid off for six weeks within the first year of getting our first mortgage/ho...
by heyyou
Wed Jun 26, 2019 2:51 am
Forum: Personal Investments
Topic: Living off IRA in retirement
Replies: 15
Views: 1788

Re: Living off IRA in retirement

Per Sun and Webb at Boston College's Center for Retirement Research, the RMD percentage (plus interest and dividends, but not cap gains) is a good retirement spending method for an entire portfolio, not just for a traditional IRA (tIRA). The IRS has RMD % for every age since those who inherit a tIRA...
by heyyou
Mon Jun 24, 2019 4:08 pm
Forum: Personal Investments
Topic: Semi-Early Retirees: 401K to Roth IRA Conversions (Should I or Shouldn't I?)
Replies: 29
Views: 3591

Re: Semi-Early Retirees: 401K to Roth IRA Conversions (Should I or Shouldn't I?)

My opinion as a veteran of 13 Roth conversions: Roth conversions are the right thing to do. You will be glad you did, later. The first few will feel tentative before the familiarity starts, then they become routine. By filling your Roth IRA with stock funds, the future growth there is both larger an...
by heyyou
Mon Jun 24, 2019 2:21 pm
Forum: Investing - Theory, News & General
Topic: Dollar General
Replies: 26
Views: 2502

Re: Dollar General

In rural Arizona, Dollar General is often the first general merchandise, chain store to open in the smallest remote towns, then the first to leave since DG prices are more than Dollar Tree or WalMart stores. Yes, high growth now, but not sustainable long term since the steady buyers of specific item...
by heyyou
Sun Jun 23, 2019 3:37 pm
Forum: Personal Investments
Topic: Heavy concentration in Electric Utilities
Replies: 20
Views: 1772

Re: Heavy concentration in Electric Utilities

Mom owned some Arizona Power and Light shares that failed to continue to do well. The business assets may have survived some type of failure, but ceased paying dividends, or perhaps the surviving value was just the reciprocal of the dividend percentage. Something went wrong with the shares of that e...
by heyyou
Sun Jun 23, 2019 2:53 pm
Forum: Personal Investments
Topic: Rebalancing to Oblivion
Replies: 46
Views: 3801

Re: Rebalancing to Oblivion

This is just a confirmation of previous posts here: Michael H. McClung suggests a near 50/50 allocation starting retirement and to spend from bonds first, in order to avoid selling any equities during that crucial first decade of retirement, unless their growth is 120% of retirement day level. Sever...
by heyyou
Sun Jun 23, 2019 2:25 pm
Forum: Personal Investments
Topic: SP500 versus EAFE
Replies: 2
Views: 360

Re: SP500 versus EAFE

My foreign holdings are to just avoid the Japanese experience of a boom followed with a long crash, when I no longer can nor want to work for anyone. Any level of positive real returns over the next decade is good enough for that purpose, no need for my trying to guess which of your two choices will...
by heyyou
Sat Jun 22, 2019 8:17 pm
Forum: Investing - Theory, News & General
Topic: Vanguard Announces Plans to Launch Commodities Fund
Replies: 187
Views: 18629

Re: Vanguard Announces Plans to Launch Commodities Fund

My inflation protection includes delaying SS to age 70, staying at the job that offered a pension (no-COLA but an income source outside of the portfolio), and keeping necessary expenses lower by living in a lower cost area (that we were already living in at retirement), and knowing that over long pe...
by heyyou
Sat Jun 22, 2019 7:59 pm
Forum: Investing - Theory, News & General
Topic: Larry Swedroe: The Curse Of Popularity
Replies: 29
Views: 3379

Re: Larry Swedroe: The Curse Of Popularity

Not as clear an answer as the other ones, but a Callan Periodic Table shows 20 years of equity sub-class returns sorted by annual performance, on one page. Easy to see how Emerging Markets and Small Cap Value did well or did poorly, but seldom near their lojng term averages, noticeable risks with hi...
by heyyou
Fri Jun 21, 2019 2:10 am
Forum: Personal Investments
Topic: For those of you who have a factor diversified portfolio, what is yours?
Replies: 55
Views: 4005

Re: For those of you who have a factor diversified portfolio, what is yours?

My tilts are away from the Large Growth exposure of TSM and the dismal performance of Small Growth, by holding less Large Blend and Small Blend. I have larger, equal slices of foreign and domestic Large Value, Small Value, and REITs, but no commodities nor precious metals exposure.
by heyyou
Thu Jun 20, 2019 6:43 pm
Forum: Investing - Theory, News & General
Topic: Good times: 2008 vs Now
Replies: 145
Views: 14484

Re: Good times: 2008 vs Now

As above, there is always a stock market crash coming. Often each new one has a different trigger than the previous ones, but the effects are still the same, stock prices fall far. Currently this has been a longer period and height of recovery from the last one, than recoveries in the past, which co...
by heyyou
Thu Jun 20, 2019 5:15 pm
Forum: Investing - Theory, News & General
Topic: SCV tilt advocates, please suggest a percentage for me to use in a backtest
Replies: 31
Views: 1880

Re: SCV tilt advocates, please suggest a percentage for me to use in a backtest

Not an answer to your specific question, but I just use equal slices of several equity sub-asset classes, then hope for adequacy instead of seeking historical optimization in my future, total returns. I'll name that the "don't know, but don't care" method. I wonder if the affect of reducing Large Gr...
by heyyou
Wed Jun 12, 2019 11:14 pm
Forum: Personal Investments
Topic: Paul Merriman UBH vs Vanguard Mkt Cap model
Replies: 22
Views: 1925

Re: Paul Merriman UBH vs Vanguard Mkt Cap model

At some point, with a slice and dice portfolio with numerous slices, there is very little separate reblancing due to any given slice not being far out of balance when compared to the portfolio, just skewed relative to the other slices. The investor can slowly rebalance with contributions or withdraw...
by heyyou
Wed Jun 12, 2019 10:38 pm
Forum: Investing - Theory, News & General
Topic: Karsten (Early Retirement Now) Pens a Challenge to Merriman and the Small/Value Premium
Replies: 68
Views: 6265

Re: Karsten (Early Retirement Now) Pens a Serious Challenge to Merriman and the Small/Value Premium

by Random Walker willthrill81 wrote: ↑ My post above showed that a 3-fund portfolio would not have done meaningfully better for year 2006 retirees than Merriman's UBH portfolio. So they wouldn't have really lost anything. As long as folks are not counting on getting higher returns from their tiltin...
by heyyou
Wed Jun 12, 2019 5:10 am
Forum: Personal Investments
Topic: Paul Merriman UBH vs Vanguard Mkt Cap model
Replies: 22
Views: 1925

Re: Paul Merriman UBH vs Vanguard Mkt Cap model

Trev h's four fund will serve well, and its components are conveniently located at Vanguard (VG). Trev's Four Fund uses VG's imprecise boundaries on its funds to an advantage, whereas other fund providers with more precise fund boundaries have to add slivers of other focused funds in order to get si...
by heyyou
Wed Jun 12, 2019 4:41 am
Forum: Investing - Theory, News & General
Topic: What financial information do you wish was more commonly known?
Replies: 50
Views: 8638

Re: What financial information do you wish was more commonly known?

As noted by several posters above: Saving is paramount, and investing a majority of the savings in stock mutual funds is necessary. Learn to accept those inevitable price fluctuations. The lure of optimal returns from precise stock fund investing is just greed, and is profitable for Wall Street fund...
by heyyou
Tue Jun 11, 2019 2:41 am
Forum: Personal Consumer Issues
Topic: Anything you wish you had spent money on when you were younger?
Replies: 73
Views: 7252

Re: Anything you wish you had spent money on when you were younger?

No, not really. Money did not limit what I was interested in doing in those days--hiking and backpacking hours away from Phoenix, where I worked on weekdays.
by heyyou
Mon Jun 10, 2019 3:19 am
Forum: Personal Investments
Topic: Financial guidance for the elderly - Dementia and personal finance.
Replies: 11
Views: 1619

Re: Financial guidance for the elderly - Dementia and personal finance.

Any allocation is fine due to the short expected longevity. Ask the broker to defend the costs of his proposed allocation compared with a VG balanced fund. Use that difference in cost to show those listed below, how he is abusing a client of that advanced age. Many brokers have some level of licensi...