Search found 175 matches

by ionball
Wed Oct 16, 2019 12:24 pm
Forum: Investing - Theory, News & General
Topic: Liability matching, duration, and rebalancing
Replies: 6
Views: 500

Re: Liability matching, duration, and rebalancing

For liability matching, try to target exact duration on your TIPS. That's how you reduce or eliminate interest rate risk. My personal approach is to not get carried away with precision in the implementation, but exact duration would be ideal.
by ionball
Mon Sep 16, 2019 8:10 am
Forum: Investing - Theory, News & General
Topic: Is the 60/40 portfolio allocation strategy being killed?
Replies: 116
Views: 10290

Re: Is the 60/40 portfolio allocation strategy being killed?

"At current valuations, such a portfolio no longer offers diversification."

Is diversification a product of valuations? Please educate me because I don't understand the relationship.
by ionball
Mon Sep 09, 2019 5:21 pm
Forum: Investing - Theory, News & General
Topic: 5% Withdrawal Rate Recommended by US News Columnist
Replies: 141
Views: 11626

Re: 5% Withdrawal Rate Recommended by US News Columnist

<snip> For those that think that a 5% fixed real dollar withdrawal strategy is a ridiculously high starting point, I'll just say that since 1970, the 30 year SWR for a portfolio with 20% total stock market / 10% small-cap value / 20% ex-U.S. / 40% intermediate-term Treasuries was....wait for it.......
by ionball
Sat Sep 07, 2019 4:31 pm
Forum: Personal Finance (Not Investing)
Topic: Fers ss supplement, Leo question
Replies: 23
Views: 1260

Re: Fers ss supplement, Leo question

rkhusky wrote:
Sat Sep 07, 2019 4:19 pm
So, no earnings test for LEO's until they reach MRA.
rkhusky- Thanks for adding that precision for the OP's benefit! I'm often too lazy to look up the governing documents.
by ionball
Sat Sep 07, 2019 2:29 pm
Forum: Personal Finance (Not Investing)
Topic: Fers ss supplement, Leo question
Replies: 23
Views: 1260

Re: Fers ss supplement, Leo question

Earnings test? So are pensions are going to add to an earnings test? I thought the earnings test don’t kick in til 58-59? What if one retires at 50? My understanding of the FERS SS Supplement for LEOs is that there is no earnings test. That is one of the advantages for LEOs versus others who receiv...
by ionball
Fri Sep 06, 2019 2:19 pm
Forum: Personal Investments
Topic: Trying to wrap my head around VPW
Replies: 28
Views: 3234

Re: Trying to wrap my head around VPW

The most common complaint that I have seen about VPW is that it is variable. That's why I like the new red sections that show how painful a steep stock market decline would impact the plan. Use the red sections as a guide to understand the level of variation. And if it's too much variation, you can ...
by ionball
Thu Sep 05, 2019 10:37 am
Forum: Personal Finance (Not Investing)
Topic: Kitces: The Problem with FIREing at 4% and the Need for Flexible Spending Rules
Replies: 274
Views: 20110

Re: Kitces: The Problem with FIREing at 4% and the Need for Flexible Spending Rules

"segment one's spending such that essential spending is covered with something like his ratcheting rule from a portion of one's portfolio and that a more dynamic withdrawal method is used with the remainder of the portfolio." I like the idea of a hybrid approach with one portion ultra safe (necessit...
by ionball
Tue Sep 03, 2019 10:03 pm
Forum: Personal Investments
Topic: Any 1811 on this forum???
Replies: 11
Views: 1507

Re: Any 1811 on this forum???

You probably have some nice retirement benefit opportunities in store. I'm sure you can get some feedback and ideas on this forum. Lots of information from many walks of life including 1811s. Post your plans and/or questions and watch the magic.
by ionball
Tue Sep 03, 2019 7:38 pm
Forum: Investing - Theory, News & General
Topic: For those who have bonds in taxable, why and which ones?
Replies: 42
Views: 3544

Re: For those who have bonds in taxable, why and which ones?

1)
I have bonds in taxable because my sheltered accounts are full and the available space won't hold enough to meet my asset allocation.
2)
Short term because I'll probably spend from this taxable account soon.
by ionball
Tue Sep 03, 2019 7:25 pm
Forum: Personal Finance (Not Investing)
Topic: Estate Planning - what instructions to leave for wife to handle finances
Replies: 19
Views: 2279

Re: Estate Planning - what instructions to leave for wife to handle finances

Try to leave her a list of three or more acceptable resources that you have vetted. Then she could choose what is most comfortable for her and would be more likely to go with one of your recommended choices. You could even rank them in your order of preference.
by ionball
Tue Sep 03, 2019 7:10 pm
Forum: Personal Investments
Topic: How do you let go of decisions that turned out to be the wrong ones?
Replies: 63
Views: 4991

Re: How do you let go of decisions that turned out to be the wrong ones?

Find someone else to blame, then it won't be your fault anymore. Perhaps you could blame the kids, or your boss who overworked you to the point that you could no longer think straight after work. There are many options, so be creative and have fun with it.
by ionball
Tue Sep 03, 2019 6:59 pm
Forum: Personal Investments
Topic: Self insured Long Term Care Fund
Replies: 36
Views: 2644

Re: Self insured Long Term Care Fund

Asset location is worth consideration for a Long Term Care reserve. When your medical expenses meet a high enough threshold, your Traditional IRA withdrawals can effectively become tax free by way of medical deductions. My plan is to always maintain a minimum reserve amount in a Traditional IRA acco...
by ionball
Wed Aug 28, 2019 2:52 pm
Forum: Investing - Theory, News & General
Topic: "The Importance of Simplicity"
Replies: 24
Views: 2441

Re: "The Importance of Simplicity"

Thanks for sharing these words of wisdom. The lists that you share always help me to stay focused on the more important investing concepts. For that I am ever grateful!
by ionball
Tue Aug 27, 2019 1:16 pm
Forum: Investing - Theory, News & General
Topic: "Factors" and language misuse
Replies: 71
Views: 3781

Re: "Factors" and language misuse

The factor discussions on Bogleheads seem to be rather complex, with terms that are not defined in the Bogleheads Abbreviations and Acronyms Wiki. I would be in favor of a specific Factors forum with a pinned explanation by Taylor Larimore of the basic Bogleheads tenets, so that beginners do not ge...
by ionball
Tue Aug 27, 2019 1:08 pm
Forum: Investing - Theory, News & General
Topic: Best of Bogleheads - your #1 takeaway
Replies: 151
Views: 14682

Re: Best of Bogleheads - your #1 takeaway

The elegance of simplicity.
by ionball
Mon Aug 26, 2019 9:12 am
Forum: Personal Investments
Topic: Protecting ourselves from sequence of returns risk
Replies: 69
Views: 4743

Re: Protecting ourselves from sequence of returns risk

There are at least two types of portfolio failure that retirees care about a) portfolio runs out of money b) portfolio doesn't generate enough income VPW protects you against A at the cost of not generating very much income. VPW folks pretend B isn't a requirement. The income VPW generates is so ba...
by ionball
Sun Aug 25, 2019 3:39 pm
Forum: Personal Investments
Topic: Seeking Retirement Planning Advice
Replies: 4
Views: 867

Re: Seeking Retirement Planning Advice

I don't think you are allowed to roll out of the TSP while you are a contributing participant. I would consider rolling the Roth IRA and 403(b) to a low cost brokerage and simplify the holdings, or roll them into the TSP for further simplicity if that fits your objective. Be sure to check the 403(b)...
by ionball
Sun Aug 18, 2019 9:41 pm
Forum: Personal Investments
Topic: Portfolio OK but need advice about closing yearly income gap from age 66 to RMD time
Replies: 12
Views: 1174

Re: Portfolio OK but need advice about closing yearly income gap from age 66 to RMD time

I just wrote an incredibly long and detailed response to all of your wonderful ideas and it appears to have been eaten! I can't find it on this thread. Does this happen often? Did you try looking on your User Control Panel page, 'Manage Drafts' section? Perhaps some of your detailed response is pre...
by ionball
Fri Aug 09, 2019 8:31 am
Forum: Personal Finance (Not Investing)
Topic: Are you a "solo ager?"
Replies: 133
Views: 17903

Re: Are you a "solo ager?"

Thanks for sharing this important topic. Health problems have a way of sneaking up as we age and cognitive decline can be a very challenging problem.
by ionball
Fri Aug 09, 2019 8:14 am
Forum: Personal Investments
Topic: How much TIPS
Replies: 22
Views: 1684

Re: How much TIPS

I don't know of any rule of thumb. TIPS are a great tool to counter risk of unexpected inflation. Ask yourself: how much unexpected inflation can my current portfolio withstand? If it's a minor concern, consider a small percentage of TIPS or none. If unexpected inflation is a major concern, consider...
by ionball
Fri Jun 21, 2019 5:58 pm
Forum: Personal Investments
Topic: First exposure to vanguard today
Replies: 10
Views: 1535

Re: First exposure to vanguard today

That's great! I enjoy spending the expense money that Vanguard saves me and hope you will too. Also, I want to echo bertilak's great comments to keep it simple.
by ionball
Tue Jun 18, 2019 8:43 pm
Forum: Personal Investments
Topic: Vanguard?
Replies: 48
Views: 4682

Re: Vanguard?

Rebus wrote:
Tue Jun 18, 2019 8:05 pm
Capital gains? I thought 403b accounts once rolled over to an ira is only taxed when I take it out?
That's right. No capital gains tax since it's in a 403b account. I can't think of any reason for not moving to Vanguard!
by ionball
Tue Jun 18, 2019 8:02 pm
Forum: Personal Investments
Topic: Vanguard?
Replies: 48
Views: 4682

Re: Vanguard?

I think you would probably do better at Vanguard by lowering your expenses. But if your funds are in a taxable account, it would be a good idea to evaluate any potential capital gains taxes before making any transactions.
by ionball
Wed May 29, 2019 5:59 pm
Forum: Investing - Theory, News & General
Topic: Question regarding the phrase "smart money"
Replies: 23
Views: 1714

Re: Question regarding the phrase "smart money"

Money that has brains? Some in the business media also imply that market indices play on a team or have free will. I chuckle and give thanks for the free comedy.
by ionball
Thu May 16, 2019 9:57 pm
Forum: Investing - Theory, News & General
Topic: Bonds beyond Total Bond Market - Anyone ?
Replies: 47
Views: 3836

Re: Bonds beyond Total Bond Market - Anyone ?

Using TIPS for a liability matching portfolio until social security claim date.
by ionball
Fri Mar 29, 2019 8:52 am
Forum: Personal Investments
Topic: Help save my father from another annuity
Replies: 20
Views: 1682

Re: Help save my father from another annuity

1035 what you can to Vanguard. I have found Vanguard rep's to make the best of a sketchy investment annuity. Call them first as they can initiate the transfer. Otherwise surrendering the existing annuity will create a taxable event at full income rates. If an income annuity is not needed, then with...
by ionball
Tue Mar 19, 2019 5:51 pm
Forum: Personal Investments
Topic: FERS retiree required to take SS?
Replies: 7
Views: 729

Re: FERS retiree required to take SS?

The supplement ends when you reach age 62. You can file for your real Social Security benefits anytime age 62 or later. It may be a better long range strategy to defer until FRA or age 70, so research the particulars as they apply to you.
by ionball
Sat Mar 09, 2019 5:02 pm
Forum: Personal Investments
Topic: Where would you park/grow $250K?
Replies: 10
Views: 1683

Re: Where would you park/grow $250K?

I would choose your easy solution first. Your other options would also make my list of acceptable possibilities. No new ideas to add really, but I think your ideas are appropriate for the goal.
by ionball
Fri Mar 08, 2019 9:12 am
Forum: Personal Finance (Not Investing)
Topic: Cost basis date to use for inherited stock
Replies: 17
Views: 1703

Re: Cost basis date to use for inherited stock

Date of death. I'm not a qualified expert, so double check.
by ionball
Thu Feb 28, 2019 6:24 pm
Forum: Personal Finance (Not Investing)
Topic: Using the Time Value of Money Formula to Determine Withdrawals: Year 2000 Retiree Example
Replies: 62
Views: 5283

Re: Using the Time Value of Money Formula to Determine Withdrawals: Year 2000 Retiree Example

Here's the important difference, though. The spouse responsible for finances, in the couple, might have died at age 75, in 2010. Luckily, the spouse left easy-to-follow instruction to the surviving spouse in his will. He said to withdraw 6.2% of the portfolio balance in 2011, 6.3% of the portfolio ...
by ionball
Sun Feb 10, 2019 9:35 pm
Forum: Personal Finance (Not Investing)
Topic: SS benefits estimate...with early retirement
Replies: 8
Views: 1188

Re: SS benefits estimate...with early retirement

The anyPIA calculator will get the job done. Search the SS website for "anyPIA" which you can use to enter all your data and get a result that does not assume continued contributions.
by ionball
Fri Jan 18, 2019 9:26 pm
Forum: Personal Investments
Topic: My 2000th post
Replies: 6
Views: 601

Re: My 2000th post

Congrats and thanks for contributing. Great forum!
by ionball
Wed Jan 16, 2019 11:24 pm
Forum: Investing - Theory, News & General
Topic: John Bogle has died at age 89
Replies: 856
Views: 56045

Re: John Bogle has died at age 89

He had amazing insight and will be missed. RIP.
by ionball
Wed Jan 16, 2019 10:49 am
Forum: Personal Finance (Not Investing)
Topic: Which Type of Annuities Did You Choose and Why
Replies: 18
Views: 1187

Re: Which Type of Annuities Did You Choose and Why

Variable Annuity via Vanguard. Vanguard has the lowest expenses that I found and no surrender charges. I prefer no expenses versus low expenses, so the Variable Annuity will be liquidated as fast as acceptable tax impact allows.
by ionball
Sat Jan 12, 2019 9:34 pm
Forum: Personal Investments
Topic: Inheriting previously inherited assets, do they get stepped up twice?
Replies: 4
Views: 776

Re: Inheriting previously inherited assets, do they get stepped up twice?

I believe her cost basis will be the price on your date of death.
by ionball
Wed Jan 09, 2019 1:55 pm
Forum: Personal Finance (Not Investing)
Topic: Fed Employee - Benefits Advisory Services?
Replies: 4
Views: 488

Re: Fed Employee - Benefits Advisory Services?

NARFE has great resources including informative webinars.
by ionball
Wed Jan 09, 2019 1:06 pm
Forum: Personal Finance (Not Investing)
Topic: Designating a Roth IRA beneficiary
Replies: 3
Views: 235

Re: Designating a Roth IRA beneficiary

Maybe someone that you don't hate if you can't think of someone you like. Or just write in ionball.
But seriously, do you have any relatives?
by ionball
Tue Jan 08, 2019 11:18 pm
Forum: Investing - Theory, News & General
Topic: Past result is not an indicator for future performance
Replies: 29
Views: 2204

Re: Past result is not an indicator for future performance

I saw some BHs comments that they are content with the certainty of outcome of index fund 20-year down the road. Isn't that misleading too? I don't think there is much certainty in the world of investing. Risk is required and often the risk is rewarded. Sometimes the risk is punished or unproductiv...
by ionball
Tue Jan 08, 2019 11:04 pm
Forum: US Chapters
Topic: The quest is the quest – the emotional letdown of winning the game.
Replies: 24
Views: 2727

Re: The quest is the quest – the emotional letdown of winning the game.

By "leave the table" I mean I will no longer be inclined to tinker with investments or investigate new strategies. I am satisfied with the path I have laid out and the only thing left to do is stay the course, with occasional rebalancing. Congratulations. All that time and effort is paying off! I w...
by ionball
Tue Jan 08, 2019 6:47 pm
Forum: US Chapters
Topic: The quest is the quest – the emotional letdown of winning the game.
Replies: 24
Views: 2727

Re: The quest is the quest – the emotional letdown of winning the game.

I'm not sure I understand. By "leave the table", do you mean that you will no longer invest/manage your portfolio, quit working, or something else?
by ionball
Mon Jan 07, 2019 2:40 pm
Forum: Personal Finance (Not Investing)
Topic: Strategic Spending to Hedge Against Future Uncertainity
Replies: 19
Views: 930

Re: Strategic Spending to Hedge Against Future Uncertainity

Term life insurance? Estate planning for surviving family members?
by ionball
Mon Jan 07, 2019 2:21 pm
Forum: Personal Finance (Not Investing)
Topic: Best way to estimate health insurance costs in case of job loss?
Replies: 22
Views: 1250

Re: Best way to estimate health insurance costs in case of job loss?

Rupert wrote:
Mon Jan 07, 2019 2:03 pm
For planning purposes, I would use the cost of COBRA coverage (cost of your present employer-provided coverage, including the portion your employer pays, plus a small administrative fee).
+1

You can use COBRA for 18 months, or possibly more depending upon conditions of termination.
by ionball
Mon Jan 07, 2019 9:31 am
Forum: Personal Consumer Issues
Topic: Soft Button Icon - Current State or Future State ?
Replies: 9
Views: 594

Re: Soft Button Icon - Current State or Future State ?

I feel your pain. The status symbols don't bother me so much as the latency or response time.
by ionball
Sun Jan 06, 2019 11:49 pm
Forum: Personal Investments
Topic: Annuity 1035 and then withdraw over time?
Replies: 6
Views: 456

Re: Annuity 1035 and then withdraw over time?

1) Yes. Except take into account that the 1035 will give up the death benefit of Annuity #2 which is a potential loss of $30k.
2) Yes, tax management of the withdrawals is probably best for the long run. I would invest into the 3 fund portfolio incrementally with each withdrawal.
by ionball
Sun Jan 06, 2019 9:14 pm
Forum: Personal Finance (Not Investing)
Topic: Anyone affected by the government shutdown?
Replies: 35
Views: 3104

Re: Anyone affected by the government shutdown?

TheHouse7 wrote:
Sun Jan 06, 2019 9:10 pm
Sorry about my ignorance, once the shutdown is over won't everyone get paid in full for "working for free"?
Was true in the past for employees. Maybe things are different now?
by ionball
Sun Jan 06, 2019 10:40 am
Forum: Investing - Theory, News & General
Topic: How do you view a savings surplus in retirement?
Replies: 117
Views: 6623

Re: How do you view a savings surplus in retirement?

From a risk perspective, I would view the extra amount as a cushion that makes the plan more robust. If I felt my plan was solid as a rock, I would view it as additional withdrawal.
by ionball
Tue Jan 01, 2019 11:46 pm
Forum: Personal Finance (Not Investing)
Topic: Will question re: Fidelity acct beneficiaries
Replies: 17
Views: 1336

Re: Will question re: Fidelity acct beneficiaries

bsteiner- thanks for the clarification. The generosity of your time and expertise really makes a difference by showing a good path forward. I was enlightened with your help last summer and continue to learn in various threads like this one. Much appreciated!
by ionball
Tue Jan 01, 2019 12:13 pm
Forum: Personal Finance (Not Investing)
Topic: Will question re: Fidelity acct beneficiaries
Replies: 17
Views: 1336

Re: Will question re: Fidelity acct beneficiaries

Before changing taxable accounts to joint, review the underlying assets and cost basis. You may lose some potential benefit of stepped up basis. If the taxable accounts are truly cash, then ignore this post.