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See screenshot. I have only 30k saved for retirement at age 51. House is only half paid for. I wondered if it is better to check the S&P Daily then chose a day where the percent is lowered to do the rollover? What would you do? Nov 12th I am also going to add an additional 4% to my Roth401k for a t...

Call_Me_Op

Spend what you need in order to enjoy the remainder of your life. Whatever is left goes to heirs and/or charity. Very simple.

Actually, I am in the camp of those who see leaving a large inheritance as a disservice. That said, I won't spend-down my assets just to try to deplete them.

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PackersFan12 wrote: ↑
Fri Nov 01, 2019 9:10 am
Seriously, why? Why are people so afraid and uncomfortable to talk about money?

Focusing on money is seen my some as shallow.

Call_Me_Op

Thought some folks might be interested in a visual of how Treasury yields changed in October: https://i.postimg.cc/L6LVFQbX/Screenshot-2019-10-31-Treasury-gov.png So shorter-term yields dropped significantly, while yields at 3-year maturity and beyond didn't change much or increased slightly. So no...

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Is the check made out to you?

Call_Me_Op

I can't provide a syllogism demonstrating you'll be rewarded by investing in the US stock market. That's a reason to diversify, e.g. internationally and bonds. No disrespect to Mr Hume, I live my life on the assumption that the sun will rise tomorrow morning. How about you? Well, the earth turns so...

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Alternate theory about ex-US: 1. Far lower exposure to tech 2. Myriad of countries with investing protections inferior to US 3. Inability for US investors to get 100% foreign tax credit 4. The dollar is king and there’s no end in sight for that All of which are widely known and presumably baked-int...

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Seasonal wrote: ↑
Fri Oct 11, 2019 3:48 pm
Would you replace a 13 year old water heater that seems to be working without any problems?

No, but I would at the slightest signs of a leak. However, if it is anywhere but a basement, I would replace based upon age.

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magicrat wrote: ↑
Fri Oct 11, 2019 7:39 am
If they love Buffet then they should follow his advice and invest in a low-cost S&P500 index fund.

+1

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I recommend over-saving to leave yourself some wiggle-room.

Call_Me_Op

masonstone wrote: ↑
Wed Oct 09, 2019 11:22 am
With the explosion of AI that is coming in the next decade how do you think it'll affect the stock market?

In a way that cannot be predicted accurately.

Call_Me_Op

Yes, it's OK. I assume you are OK being very treasury-heavy.

Call_Me_Op

403B and 457 plans, and IRAs, are next best solutions. These are not ERISA protected, but are protected under the BAPCAP act of 2005. Up to $1.3 million of each type. This protection, though, kicks in only if there is a bankruptcy petition filed by the debtor/judgment liability party. I don't think...

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bhsince87 wrote: ↑
Mon Oct 07, 2019 9:38 pm
She said she councils [sic] people all the time who have problems spending too much, but has never encountered the other problem.

She apparently does not visit this forum.

Call_Me_Op

403B and 457 plans, and IRAs, are next best solutions. These are not ERISA protected, but are protected under the BAPCAP act of 2005. Up to $1.3 million of each type. This protection, though, kicks in only if there is a bankruptcy petition filed by the debtor/judgment liability party. I don't think...

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I have all my IRA in MM. Suggestions for getting back in the market? ETFs? Why did i pull out? I wanted to hedge some market downside, anticipating a 5% drop with the global uncertainty, knowing i could miss a 5% upside I didn't pull out of the taxable assets due to tax issues, Silly me, pulled out...

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Right now, I am staying mostly short (Pascal's Wager).

Call_Me_Op

I learned about Terro on Bogleheads and it has been a godsend, the only thing that has worked on carpenter ant and sugar ant invasions. And keeping me from avoiding exterminator scams who want to put me on the monthly "plan." But this summer I have dealt with ants in one small part of our house, by...

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Has anyone considered, or backtested, a Permanent Portfolio allocation without the cash component? Traditionally, the Permanent Portfolio is 25% cash, 25% bonds, 25% stocks, 25% gold. I understand that in some circumstances, such as recessions, cash may be king. However, I would assume that in a re...

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I can state that over 35 years, my retirement account is about 2X the money I contributed. So at least for me, Jonathan is correct. However, during the 1980's and into mid 1990's, I had very little in stock - which was a mistake.

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ignition wrote: ↑
Sat Sep 28, 2019 3:37 am
In the more inflationary 1900's bonds were owned by stocks as stocks are better suited to hedge against inflation.

I was unaware that a bond could own a stock - good to know.

Call_Me_Op

Nobody knows whether the SCV permium will persist into the future. That said, I don't see a huge downside to doing it as long as you can access SCV cheaply.

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JD2775 wrote: ↑
Thu Sep 26, 2019 12:31 pm
I want to increase my bodily injury coverage on my Geico insurance (am just realizing it is too low) but I want to make sure I don't actually need an Umbrella Policy on top of it.

Don't know whether you "need" it - but I think it's wise for you to get it.

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Went to a free lunch presentation given by a guy whose main pitch is capital preservation.He talked about people who are invested in stocks and handed out a chart from 1950 to today showing the difference if you avoided the big market drops.He said he uses a robo program that somehow gets you out a...

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I have a 15 year-old flip-phone.

Call_Me_Op

My mom knows nothing about investing. I took her money out of one of those expensive firms and put it all in a single Vanguard Lifestrategy fund. She has to do nothing except collect her RMD each year and she is very happy with it. If you have not looked at these funds, you should. They are low cost...

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Nisi,

Funny that you asked this question. It popped into my head just a couple of days ago, but I never got around to asking it.

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Hi all, I hold this Illinois bond: 592248GA0. I don't choose to hold any individual bonds lower than investment grade. This bond was recently downgraded by Fitch to BBB-, with a negative outlook. On the other hand, S&P rates it BBB, and Moody's, BA1, so it's still investment grade, but on the verge...

Call_Me_Op

I have a house that had a water leak from a fixture on the second story. The water damaged drywall on the wall and ceiling directly downstairs. I had two painters come out and give me a quote for the repair (seemed really high), and I agreed to hire one of them. However, he won't schedule a day, te...

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The current situation (of very low interest rates) has little to do with the government's ability to service the debt. It is driven mainly by the high demand for safe investments (by foreign governments, institutions, and an aging population - all still influenced by recent brutal bear markets).

Call_Me_Op

Honestly, people make too much of an issue over whether they have a 3-fund, 4-fund, 2-fund, 1-fund, or 8-fund portfolio. What is of primary importance is your ratio of stocks to fixed-income. After that, keep costs low and stay the course.

Call_Me_Op

There also was a more recent study done by an actuary whose name I cannot recall that looked at different strategies (SWR, lifetime income annuity/SPIA, RMD algorithm) and concluded that the IRA RMD algorithm applied to an entire portfolio was optimal. Or instead of using the IRA algorithm, you can...

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In my mind, purchasing umbrella insurance is the perfect application (by analogy) of Pascal's Wager. It allows you to avoid something really bad at a very modest price. Even if the chance of needing it were one part in a billion, it would still be worth getting because the consequences of not having...

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I will add that I had problems viewing my account yesterday morning but it was fixed by afternoon.

I have been with Fidelity for over 20 years and this is the first time I have ever had a problem. So this is very rare. In general, I have found Fidelity to be very reliable.

Call_Me_Op

An umbrella policy will protect your future earnings from being garnisheed. Without it, it's possible you would be paying off a law suit for the rest of your life. To be clear, an umbrella policy, no matter how large, does not guarantee protection of your assets or future earnings. If you have a ju...

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I do not like the whole idea of a LMP. In the strict sense, it implies that I can predict the date of my demise, and as I approach that date, my assets dwindle in a predictable manner (assuming I do not have a risk portfolio to go with it). If I happen to live longer than predicted, either I am hold...

Call_Me_Op

...You can't collect 6%-7% anymore from a portfolio of quality bonds, you will get more like 2%... This reminds me of how Jack Bogle used to say having an allocation to bonds is like having an "anchor to windward". I am no sailor but I took that to mean you have a part of your portfolio that will b...

Call_Me_Op

There are many posts you can search on this topic. Bottom line is you should consider umbrella insurance if you have a job and/or assets you do not want to lose. There is no consensus on how to calculate the appropriate amount, but many recommend an amount of 1X - 2X your exposed net worth. Exposed ...

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You could certainly invoke Pascal's Wager to justify 2 year notes instead of the 10 year bonds. In other words the risk going with 2 year is re-investment risk if rates fall further - while the risk with the 10 year is inflation risk if there is a sharp rise in inflation - arguably more threatening...

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You could certainly invoke Pascal's Wager to justify 2 year notes instead of the 10 year bonds. In other words the risk going with 2 year is re-investment risk if rates fall further - while the risk with the 10 year is inflation risk if there is a sharp rise in inflation - arguably more threatening...

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From a practical standpoint, the issue here is really the OP's definition of risk. Were he willing to invest the $80k in a 60/40 portfolio and spend 6% of the portfolio value per year, it is highly likely that the money would not run-out in his lifetime. At least that's true based upon historical st...

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When I first started investing (long ago) I dabbled in individual stocks. Some did well but I had one or two that essentially went to zero. (That's what I got for "trying to catch a falling knife.") Yes, you want to sell it and report the loss. There's no point waiting around in hopes that it might ...

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I max out in EE bonds each year not because I am planning on any kind of laddering strategy but because it is a different type of investment that has interesting characteristics and is tax deferred. One area where it is appealing is if we have a protracted period of very low interest rates. It compl...

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Look at the 30,000 foot view. There are some 47 or so countries in which you can invest. Does it really sound prudent to invest all of your risk assets in just one of these? There is a concept called diversification that needs to be considered. I think it is incorrect to begin the argument with why ...

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* Vanguard has a very useful Asset-Allocation Tool. This is the link: Investor Questionnaire Best wishes. Taylor Jack Bogle's Words of Wisdom: "Asset allocation is critically important; but cost is critically important, too -- All other factors pale into insignificance." Jack Bogle Taylor, Thanks f...

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I am no expert in this area, but I would look into a single-payout immediate annuity. Perhaps someone here is aware of the current rate for a 63 year-old man.

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I've always invested into CDs with banks rated B+ or above. A friend of mine has bought cds from several banks with C ratings. My question is what is the biggest risk or worst scenerio of dealing with banks with a rating as low as C? He states as long as it's an FDIC insured bank, you're insured up...

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chem6022 wrote: ↑
Fri Aug 16, 2019 1:39 pm
Honest question, wouldn't TIPS be even more conservative than cash for this purpose?

Not necessarily - especially at real rates close to zero. The TIPS may well be under water when you want cash.

Call_Me_Op

To pay those rates after that high expense, those bonds would need to be at the extreme low end of the credit scale (extreme junk bonds). Is that where you want to place short-term reserves?

Call_Me_Op

If you notice, your post was about cash versus bonds, but most of us are focusing on your equities. That's because cash versus bonds is a relatively minor question - especially at today's rates. The higher-level and arguably more important question is safe versus risky (risk defined in terms of vola...

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