Search found 110 matches

by David Althaus
Mon Nov 11, 2019 2:44 pm
Forum: Investing - Theory, News & General
Topic: Saving for a new vehicle
Replies: 36
Views: 3185

Re: Saving for a new vehicle

My statement about asset allocation should have been more specific. Since the car will be purchased in the next five years I assumed saver would want almost no risk. Leaving the current asset allocation in place would provide potentially more money in five years when the lease would begin. All the b...
by David Althaus
Mon Nov 11, 2019 8:44 am
Forum: Investing - Theory, News & General
Topic: Saving for a new vehicle
Replies: 36
Views: 3185

Re: Saving for a new vehicle

Consider leasing as you think about this. I KNOW I KNOW most Bogleheads don't agree. But it has some big benefits: 1. You don't need to worry about changing your current asset allocation. That has value in that cash will pay what cash pays and you may have to forgo positive market moves should they ...
by David Althaus
Mon Nov 11, 2019 8:20 am
Forum: Personal Investments
Topic: Asset allocation significance
Replies: 16
Views: 1562

Re: Asset allocation significance

Sorry for your loss. I see a bit of mental accounting here with your statement about the life insurance. Consider: determining your net worth and dividing that pie into equity, fixed assets and cash. Then decide your preferred asset allocation and how much is required to do the things you want to do...
by David Althaus
Wed Nov 06, 2019 9:37 am
Forum: Personal Finance (Not Investing)
Topic: RMD Withdrawl
Replies: 1
Views: 321

RMD Withdrawl

Possible I'm wrapped around an axle here but: Portfolio Visualizer shows withdrawing from an account over 10 years with quarterly withdrawls instead of yearly supports about a 33 basis point premium as terminal value. Has anyone else observed the same? Not sure the view will be worth the climb. Supp...
by David Althaus
Sun Nov 03, 2019 8:40 am
Forum: Personal Finance (Not Investing)
Topic: 25yo financial check-in
Replies: 13
Views: 1278

Re: 25yo financial check-in

You obviously enjoy life skills to be envied. You will do the right things on the specifics. If I could do it over (at 72) I would set my investments 90/10 total stock market plus any of the broad bond indexes. Then forget them for a number of years. Concentrate on becoming indispensable at your wor...
by David Althaus
Tue Oct 29, 2019 8:00 am
Forum: Personal Consumer Issues
Topic: Folks age between 65-70. What’s your exercise routine
Replies: 44
Views: 4463

Re: Folks age between 65-70. What’s your exercise routine

We're all different. I've found (currently 72) 30 minutes walking six days a week, stationary bike 30 minutes for four days a week, and 30 minutes vigorous swimming five days a week helps me stay stronger and fitter without the risks of overuse in any one area. Swimming is usually difficult for most...
by David Althaus
Sun Oct 27, 2019 8:23 am
Forum: Investing - Theory, News & General
Topic: Christine Benz article on door to door financial people
Replies: 59
Views: 6226

Re: Christine Benz article on door to door financial people

Here's another take: 1. Sales person probably views the situation as a perfect s--- storm; calling on such a person whose sister is a competent and knowledgeable professional. Sales person will probably not call here again. 2. What is the base rate? I don't know but seems like a drill down would rev...
by David Althaus
Sat Oct 26, 2019 8:24 am
Forum: Investing - Theory, News & General
Topic: "More evidence that it’s really hard to ‘beat the market’ over time"
Replies: 18
Views: 2805

Re: "More evidence that it’s really hard to ‘beat the market’ over time"

Thanks. You can't beat the market but you can beat 95% of professional money managers. Seems like the correct wager to me.

All the best
by David Althaus
Fri Oct 25, 2019 9:51 am
Forum: Personal Finance (Not Investing)
Topic: Heightened risk of adverse financial outcomes as one ages
Replies: 6
Views: 807

Re: Heightened risk of adverse financial outcomes as one ages

We have made accounting for this stuff part of our investment policy statement. That forces you to think through the issue from a number of perspectives and have (admittedly imperfect) a path on which to proceed. Getting to that path will be the hard-thinking part.

All the best
by David Althaus
Wed Oct 16, 2019 7:45 am
Forum: Investing - Theory, News & General
Topic: Edward Jones presentation at the senior center
Replies: 44
Views: 6545

Re: Edward Jones presentation at the senior center

Maybe there should be a thread "Senior Center Investment Presentations--Caveat Emptor."


All the best
by David Althaus
Sat Oct 12, 2019 9:18 am
Forum: Investing - Theory, News & General
Topic: Vanguard: the case for global equity investing
Replies: 160
Views: 12250

Re: Vanguard: the case for global equity investing

1. The chart referenced above causes one to make a casual assertion that the top for Ex US stocks coincided very closely to the fall of the Berlin Wall. To me, this demonstrates the value of determining your asset allocation and sticking with it. Could any of us honestly assert we picked that time t...
by David Althaus
Thu Oct 10, 2019 7:48 am
Forum: Investing - Theory, News & General
Topic: Take Control of Your Financial Future With These 4 New Rules"
Replies: 7
Views: 2148

Re: Take Control of Your Financial Future With These 4 New Rules"

Personal finance (for lack of a better term) can be really "goofy." People who make a lot of money in this business all too often cost the average investor lots of money. People like Taylor are paid nothing but add tremendous real value. I hope Mr. Roth can make some money from writing and advising....
by David Althaus
Fri Oct 04, 2019 9:17 am
Forum: Personal Investments
Topic: Commission free dividend stock portfolio
Replies: 15
Views: 1334

Re: Commission free dividend stock portfolio

Think a determination of risk vs reward here is appropriate. Willing to wager that 15-20 years ago GE, Eastman Kodak, Xerox, and probably many more "safe" stocks that escape memory were on the list. Only takes one of these types to cause real havoc with net worth. Even if successful how many basis p...
by David Althaus
Thu Oct 03, 2019 8:37 am
Forum: Investing - Theory, News & General
Topic: E-Trade joins the party $0 commission
Replies: 37
Views: 3474

Re: E-Trade joins the party $0 commission

My guess is these companies have had this gamed out for a long time. Witness TDA dropping commissions within hours of Schwab. Companies don't just blithely agree to take a $200 to $400 million quarterly hit to revenue within eight hours. So, the longer Fidelity goes without a move the more you can r...
by David Althaus
Thu Oct 03, 2019 8:27 am
Forum: Investing - Theory, News & General
Topic: Over Confident in Old-age: Cognitive Decline and Financial Literacy
Replies: 83
Views: 7853

Re: Over Confident in Old-age: Cognitive Decline and Financial Literacy

At 72 years of age here's some observations on cognitive decline: 1. It's biology 2. Try to get vigorous daily exercise. Choose to wear out not rust out. 3. If you worry about overconfidence (actually if you worry about overconfidence it could be a sign you're not) consider the Jack Bogle portfolio-...
by David Althaus
Tue Oct 01, 2019 10:23 am
Forum: Investing - Theory, News & General
Topic: Charles Schwab (SCHW) Eliminating Commissions for Stocks, ETFs and Options Listed on U.S. or Canadian Exchanges
Replies: 106
Views: 10093

Re: Charles Schwab (SCHW) Eliminating Commissions for Stocks, ETFs and Options Listed on U.S. or Canadian Exchanges

It's almost assured other brokers will soon follow. What will this eventually do to traditional mutual funds? Other than not being able to purchase fractional shares I can think of no reason we all shouldn't switch to the ETF version and save on the expense ratio.

All the best
by David Althaus
Fri Sep 27, 2019 7:47 am
Forum: Personal Finance (Not Investing)
Topic: Do I need an Umbrella Policy?
Replies: 12
Views: 1340

Re: Do I need an Umbrella Policy?

We pay about $150 per million per year--all insurance with one company and I don't know if rates vary by state. It's a real bargain that guards against sharks. It may be counterintuitive, but if you live in a state where rates are higher that may be a sign you really need the policy.

All the best
by David Althaus
Mon Sep 23, 2019 7:44 am
Forum: Investing - Theory, News & General
Topic: Simulating Buffet's Recommended Portfolio
Replies: 6
Views: 1166

Re: Simulating Buffet's Recommended Portfolio

The Estrada method described seems simple and elegant at the same time even when your allocation is lower than 90/10. It's simple to execute and easy to understand. (I'll assume most people have been exposed to his technique). As he stated in the paper the technique may help a little with lower allo...
by David Althaus
Sat Sep 21, 2019 10:00 am
Forum: Personal Finance (Not Investing)
Topic: Dental Insurance for Retirees
Replies: 62
Views: 4911

Re: Dental Insurance for Retirees

Personal Philosophy: Use insurance to mitigate catastrophic losses with the highest deductible allowed. With dental insurance--by the time you pay the monthly premium, account for deductibles, account for procedures not covered under any circumstance, and the fact that dental procedures probably won...
by David Althaus
Fri Sep 20, 2019 7:37 am
Forum: Personal Finance (Not Investing)
Topic: Downsizing House to Apartment
Replies: 8
Views: 1145

Re: Downsizing House to Apartment

All markets seem different. Where we live estate sale people will catalog, sell your stuff, and take away the stuff that's worthless. I believe they take a 30% cut of the proceeds. This is the method wife and I will employ. My experience (with my parents household stuff) is that it works extremely w...
by David Althaus
Tue Sep 17, 2019 6:01 am
Forum: Personal Investments
Topic: TD Ameritrade Money Market Options
Replies: 88
Views: 18592

Re: TD Ameritrade Money Market Options

This is a continuing annoyance with TD. Look at one month CD. (It's what I default to). They carry a pretty good rate. If you need the money in less than 30 days it should probably be in fungible cash anyway.

All the best
by David Althaus
Tue Sep 17, 2019 5:57 am
Forum: Personal Investments
Topic: Annuity question
Replies: 19
Views: 1868

Re: Annuity question

Those who promise high return with low risk are either criminals or fools. (please reread the last sentence).

All the best
by David Althaus
Sat Sep 14, 2019 9:00 am
Forum: Investing - Theory, News & General
Topic: Attempt At Humor
Replies: 1
Views: 708

Attempt At Humor

Noted a brand new ETF this week. VEGN. Vegetarian plus ESG. Wow. Can people pat themselves on their own backs with more vigor? Also, is the right time to short Beyond Meat? And, does this qualify as a factor fund?

All the best. Have a fun weekend
by David Althaus
Thu Sep 12, 2019 7:59 am
Forum: Investing - Theory, News & General
Topic: How and where to invest for a 92-year-old?
Replies: 20
Views: 1625

Re: How and where to invest for a 92-year-old?

We went through this situation with mother and mother-in-law. We kept the money in cash and accepted there was no upside worth the risk. It did provide an exact glidepath before having to make other arrangements. Maybe more important is devote some thought to avoiding probate, establish a living tru...
by David Althaus
Fri Sep 06, 2019 7:55 am
Forum: Investing - Theory, News & General
Topic: Boglehead Contest -- "Wall Street has no idea how stocks will end 2019, with forecasts ranging from down 5% to up 11%"
Replies: 27
Views: 2839

Re: Boglehead Contest -- "Wall Street has no idea how stocks will end 2019, with forecasts ranging from down 5% to up 11

There seems to be a never-ending parade of forecasters--almost everybody who appears on CNBC. My takeaway is this demonstrates there are still enormous costs to be wrung out of our financial system. That means these people who forecast can move on to more productive and value-creating endeavors. All...
by David Althaus
Wed Sep 04, 2019 12:17 pm
Forum: Personal Consumer Issues
Topic: Pre-paid Funeral Expenses
Replies: 66
Views: 3977

Re: Pre-paid Funeral Expenses

If that's what elderly parents want it's probably what you want to do. This seems generational to me. My parents and in-laws wanted these things because they feared running out of money. Never once considered it from an investment view. We are more in line with the Big Lebowski Donnie final resting ...
by David Althaus
Sat Aug 31, 2019 9:19 am
Forum: Personal Investments
Topic: Transfer to Merrill Edge from advisory acct
Replies: 10
Views: 781

Re: Transfer to Merrill Edge from advisory acct

Doesn't look like you would but double check to make sure you won't create a taxable event.

All the best
by David Althaus
Thu Aug 29, 2019 1:03 pm
Forum: Investing - Theory, News & General
Topic: POST YOUR QUESTIONS FOR THE EXPERTS PANEL Q&A HERE
Replies: 84
Views: 13517

Re: POST YOUR QUESTIONS FOR THE EXPERTS PANEL Q&A HERE

Inflation can come back and likely will at some point. Unless it reaches Latin American proportions is it something retirees with free and clear houses can safely ignore or at least lower a lot on the worries list?

Thanks. All the best
by David Althaus
Thu Aug 29, 2019 7:55 am
Forum: Investing - Theory, News & General
Topic: "The Importance of Simplicity"
Replies: 24
Views: 2548

Re: "The Importance of Simplicity"

Even on Bogleheads lots of ink (proverbial) is spilled striving for better results through sectors, factors, etc. in the hope a more sophisticated approach will prove fruitful. If early in your investment life you were promised that at your chosen allocation you would outperform 70% of active manage...
by David Althaus
Thu Aug 29, 2019 5:24 am
Forum: Personal Consumer Issues
Topic: Maui Honeymoon Daily Spending Budget
Replies: 39
Views: 2789

Re: Maui Honeymoon Daily Spending Budget

At 72 think I would worry about saving money after you get home. That said--road to Hana is cheap (even with the gas) and an absolute must. There is probably an app that will provide a guided tour as you do the drive.

All the best
by David Althaus
Wed Aug 28, 2019 7:45 am
Forum: Investing - Theory, News & General
Topic: Swensen Endowment Portfolio Book
Replies: 17
Views: 1116

Swensen Endowment Portfolio Book

Listened to David Swensen's Portfolio for Endowments book. Interesting in that: 1. He asserted 20% investment in total market outside US provides a currency hedge against the US dollar. Further, he said any more than 20% actually increases currency risk. I'll take on faith that what he says about it...
by David Althaus
Mon Aug 26, 2019 7:23 am
Forum: Investing - Theory, News & General
Topic: Retirement Expenses Rule of Thumb
Replies: 51
Views: 4311

Re: Retirement Expenses Rule of Thumb

You seem like people who will have more than sufficient resources and thinking power. At 72 we have never done a budget. Here's our thinking. Hope it can help you. Divide your spending (after taxes, utilities, etc.) into A, B, and C priorities. A--I absolutely want to spend the winter in warm weathe...
by David Althaus
Sat Aug 24, 2019 1:46 pm
Forum: Personal Finance (Not Investing)
Topic: When to have an Umbrella insurance policy
Replies: 39
Views: 4366

Re: When to have an Umbrella insurance policy

Agree with Runner 3081. For about $150 per million per year it's very cheap. Consider: you get the insurance company's entire legal staff working for you with this $150 retainer--with absolute commitment to protecting the company's $1M.

All the best
by David Althaus
Sat Aug 24, 2019 7:55 am
Forum: Investing - Theory, News & General
Topic: Rob Arnott on value investing and the Achilles' heel of market cap indexing (Morningstar podcast)
Replies: 62
Views: 6102

Re: Rob Arnott on value investing and the Achilles' heel of market cap indexing (Morningstar podcast)

He inadvertently drove home the perils of adopting such a strategy when he allowed that his return was 10% vs. 13% of a period of time which I don't recall. That means subsequent years returns suffered by the earlier relatively poorer performance. Reversion to mean gets most of these guys. I rest ea...
by David Althaus
Wed Aug 21, 2019 2:18 pm
Forum: Personal Investments
Topic: Overwhelmed by bond diversification strategies for young investor
Replies: 28
Views: 1303

Re: Overwhelmed by bond diversification strategies for young investor

See the wiki site on this. Total Bond Fund should work fine. At 24 you may want to strongly consider 100% total stock market index for a long time.
by David Althaus
Sun Aug 18, 2019 8:02 am
Forum: Investing - Theory, News & General
Topic: Past Performance
Replies: 74
Views: 4148

Re: Past Performance

Have never considered 3 fund portfolio making claims about performance--other than--VTI will reflect the return of US stock market each year. That further means each year my VTI investment will outperform about 70% of managers who charge a fee, every five years outperform about 90%, and every ten ye...
by David Althaus
Sun Aug 18, 2019 7:47 am
Forum: Investing - Theory, News & General
Topic: TIPs Intellectual Exercise
Replies: 2
Views: 438

TIPs Intellectual Exercise

For thought exercise only: Are TIPs in a bubble or is there blood on the streets? I can't decide. What's more--it's difficult to determine HOW to think about it.

All the best
by David Althaus
Sat Aug 17, 2019 6:10 am
Forum: Personal Investments
Topic: Recommended Bond Funds at TDA
Replies: 8
Views: 725

Re: Recommended Bond Funds at TDA

Thanks to Neilpilot for heads up on money market fund at no load. Have been using one or three month cd at Ameritrade. PTTXX is listed as no load when you pull up quote. Probably have to keep it for a month for it to stay no load so evaluating it against one month cd would be the way to go. All the ...
by David Althaus
Wed Aug 14, 2019 10:43 am
Forum: Personal Consumer Issues
Topic: Skunks keep coming in our yard!
Replies: 44
Views: 3216

Re: Skunks keep coming in our yard!

You might try cutting up a bar of Dial soap into slivers and distribute around their areas of entry--or the entire perimeter if necessary. Dial has tallow amine as a surfactant (makes water wetter) that is processed from animal fat. Skunks may interpret as another animal's territorial claim. From pe...
by David Althaus
Wed Aug 14, 2019 7:47 am
Forum: Personal Investments
Topic: Tell me about TD Ameritrade
Replies: 21
Views: 1758

Re: Tell me about TD Ameritrade

We came to TD via the Scottrade merger. There are some better features on their website and have had no problem in any way. Have noticed there is more effort to sell via at least quarterly calls. Then, too, there is the issue of Vanguard ETFs not qualifying for commission free trading. This is more ...
by David Althaus
Fri Aug 02, 2019 10:05 am
Forum: Personal Finance (Not Investing)
Topic: Umbrella Insurance with 15 or 16 year old driver in house
Replies: 8
Views: 1107

Re: Umbrella Insurance with 15 or 16 year old driver in house

Maybe try asking insurance company if they will cap teenager at two and give you the additional three.

All the best
by David Althaus
Wed Jul 31, 2019 10:57 am
Forum: Personal Consumer Issues
Topic: Personal Trainer for Physical Balance
Replies: 52
Views: 3505

Personal Trainer for Physical Balance

Has anyone used a personal trainer to work on balance issues as they age? 72 and thinking I need to work on balance. Obviously, there are all kinds of sites on internet with suggestions but have always found exercise proper technique is more than half the battle. Can a personal trainer help? All the...
by David Althaus
Mon Jul 22, 2019 7:10 am
Forum: Personal Consumer Issues
Topic: Car Leasing Question
Replies: 22
Views: 1639

Re: Car Leasing Question

Addition to what's been said: Is it really likely you will keep the car 10 years? Intentions are easy--behavior is real. Depreciation assumptions are probably based on 10 years. By the time you own the car it's worth very little. What if you buy a lemon? Seems to happen all too often. That would rea...
by David Althaus
Sun Jul 21, 2019 7:19 am
Forum: Personal Finance (Not Investing)
Topic: RMD Withdrawal Method
Replies: 27
Views: 1987

RMD Withdrawal Method

We take our RMD once per year with rebalancing. Anyone out there use a different method? Is there any academic research on optimal withdrawl method?

All the best
by David Althaus
Sat Jul 20, 2019 8:36 am
Forum: Personal Investments
Topic: Where to invest "car fund" for 10 years or more
Replies: 22
Views: 2461

Re: Where to invest "car fund" for 10 years or more

In ten years you will be at my current age. Consider leasing as an alternative strategy. Yes, it's more expensive--but probably not by a life changing number. What you get when leasing: 1. Almost always trouble free driving 2. The latest in safety technology. Trust me: it's more important as you age...
by David Althaus
Fri Jul 19, 2019 12:40 pm
Forum: Personal Finance (Not Investing)
Topic: Harrassed at work, what steps to take to protect her future employment
Replies: 93
Views: 8756

Re: Harrassed at work, what steps to take to protect her future employment

Once an employer determines they no longer want you it's probably time to just suck it up and go. Ego will heal sooner or later (probably sooner) and person can get on with a positive outlook on life. Face it--they probably know the law better and probably have sufficient resources to fight as long ...
by David Althaus
Thu Jul 18, 2019 1:32 pm
Forum: Personal Finance (Not Investing)
Topic: Lesson Learned on selling old books like a 1608 Breeches Bible?
Replies: 8
Views: 1061

Re: Lesson Learned on selling old books like a 1608 Breeches Bible?

Generally speaking Bibles are much worth less than most people assume. Go to website called American Book Exchange (ABE). Go to rare book section. You can get close to what a dealer would charge. If you try to sell to a dealer you will probably get about 40% of what's listed as the retail price. All...
by David Althaus
Wed Jul 10, 2019 10:31 am
Forum: Personal Investments
Topic: Assisted Living Money Decision
Replies: 21
Views: 1916

Re: Assisted Living Money Decision

Would it be asking too much of your mother to sell the house and move to one bedroom apartment? Emotional baggage aside this seems like a reasonable course. This $500k from the house can last a long time and turns an illiquid asset into cash on which to live. Good luck.

All the best
by David Althaus
Sun Jul 07, 2019 11:49 am
Forum: Personal Finance (Not Investing)
Topic: When to find a Financial Advisor in Retirement
Replies: 20
Views: 1574

Re: When to find a Financial Advisor in Retirement

Consider the questioning technique as a helpful tool. It has been helpful to me. 1. If I'm not here or incapacitated would my spouse be willing and able to handle the portfolio? We simplified assets so it's a once per year arithmetic exercise that our son (POA) has agreed to help with when it comes ...
by David Althaus
Thu Jul 04, 2019 8:02 am
Forum: Investing - Theory, News & General
Topic: 'There Are No Average Investors' - My interview with Morningstar's Christine Benz and Jeff Ptak
Replies: 21
Views: 4791

Re: 'There Are No Average Investors' - My interview with Morningstar's Christine Benz and Jeff Ptak

Echo the compliment on buckets. Your thoughts on factors can be helpful to lots of folks. Should these continue to work--a big assumption--at 72 I ask myself how long tracking error (to the downside) can last and will it outlast me? With a three fund portfolio the investor can rest easy knowing that...