Search found 7116 matches

by hudson
Tue Mar 26, 2024 11:12 am
Forum: Personal Finance (Not Investing)
Topic: 20-30X income, is that the "retirement rut"?
Replies: 135
Views: 20912

Re: 20-30X income, is that the "retirement rut"?

HanSolo wrote: Tue Mar 26, 2024 11:02 am
I can't speak for others, but my first thought when I read the original "middle finger" comment was that, if I didn't respect the people I work for, it means I'm in the wrong company, and I should part ways with them regardless of whether I'm FI.

Agree!
There are times to grab a knot and hang on.
There are times to seek a better deal.
There are times to walk.
All 3 worked for me.
With exceptions, I tried to maintain a low profile and bide my time.
I never slacked off; it was always full steam ahead.
I almost always left on good terms.
by hudson
Mon Mar 25, 2024 5:06 am
Forum: Investing - Theory, News & General
Topic: just a general comment about "too conservative" investors here
Replies: 246
Views: 40588

Re: just a general comment about "too conservative" investors here

protagonist wrote: Sun Mar 24, 2024 7:57 pm
If one is financially secure, one does not need to take risks, because even becoming a LOT richer probably won't buy more happiness.


Were it not for the big tax hit that I would take if I sold my one remaining index fund, I might just invest 100% in my TIPS ladder and forget about it entirely.

Larry Swedroe on risk: "...if have no need to take risk, don't. Rule number one of investing. Also Rule 2 and 3."
viewtopic.php?p=1372822#p1372822

100% TIPS: I like TIPS along with short and intermediate treasury nominals/CDs.
by hudson
Sun Mar 24, 2024 6:09 pm
Forum: Investing - Theory, News & General
Topic: It is really that simple to do it the Bogleheads way?
Replies: 87
Views: 8188

Re: It is really that simple to do it the Bogleheads way?

Thanks for the replies. My own reply didn't get posted for some reason so here is a shorter one. a) I have not read all the books on the list, just some. I read Rich Dad when I didn't know anything about finance at all, I'm aware it's highly criticized. b) My FA has been reasonably open with me, he says that it's a good strategy though has never heard of Bogleheads (which made me suspect) c) The simplicity of it appeals to me, since I have lots of other things I have and want to do. I didn't hate learning about finance, but it's far from my passion. I guess the fact that it's so inverse to most of life had me scratching my head - what, don't learn more and do nothing? As the book says it's the exact opposite of most of life. d) I estimate ...
by hudson
Sun Mar 24, 2024 8:04 am
Forum: Investing - Theory, News & General
Topic: It is really that simple to do it the Bogleheads way?
Replies: 87
Views: 8188

Re: It is really that simple to do it the Bogleheads way?

r.walker,
Anything that works is good technique!
I'm the opposite at 100% fixed...but it works. :)
by hudson
Sun Mar 24, 2024 7:39 am
Forum: Personal Finance (Not Investing)
Topic: Should we have Long Term Care Insurance?
Replies: 34
Views: 2965

Re: Should we have Long Term Care Insurance?

Like any insurance, the extent of the benefit and deductible impacts your policy cost. We looked at policies with: 2, 3, and 5-year benefit periods $200 and $300/day max daily benefits 90-day and 180-day elimination periods 2%, 3% and 5% inflation riders policies from 6 different insurance companies (NY Life, NGL, Northwestern Mutual, Thrivent, Banker’s Trust and Mutual of Omaha) In 2022, we settled on a policy from National Guardian Life (only rate A by AM Best) 180-day benefit period $200/day max daily benefit 2 x 3-year benefit period with an extra shared 3-year benefit period 3% compounded inflation rider (some companies only offer simple) At the time we purchased it, this max daily benefit would cover 100% of one shift of a home aide,...
by hudson
Sun Mar 24, 2024 7:18 am
Forum: Investing - Theory, News & General
Topic: It is really that simple to do it the Bogleheads way?
Replies: 87
Views: 8188

Re: It is really that simple to do it the Bogleheads way?

I've made several posts of this nature but I decided to summarize the meat of what I want to say in this one. In short...is it really that easy to invest the Bogleheads way? I have read Jack Bogle's book and some other books on finance (Rich Dad Poor Dad and some I can't remember offhand) and it seemed clear-cut and simple enough. Buy index funds, hold. Profit. It's almost impossible to beat the market, so don't. I recall when I first started learning about finance years ago thinking that every investor needs to know alpha, beta, Sharpe ratio, candlestick theory etc...and that it was an arcane science that only a select few suit-clad males knew, and that's why we always saw the same faces. But apparently it isn't? There's so much informati...
by hudson
Sun Mar 24, 2024 7:06 am
Forum: Personal Finance (Not Investing)
Topic: 12 months before retirement what do you wish you had done
Replies: 72
Views: 8814

Re: 12 months from retirement what do you wish you had done

Hillview wrote: Fri Mar 22, 2024 9:05 am [Topic is now in Personal Finance (Not Investing) - retirement planning. mod mkc]

Might be 12 months from retirement (debating at home). What do you wish you had done or what did you do that you think was very helpful?
I wish that I had taken more pictures of the great folks that I worked with.
Maybe selfies with the most memorable folks.

What about finance wise?
I did the math.
I transferred my 401K totals every March to a Vanguard IRA. At retirement my 401K was empty.
No debt.
by hudson
Sat Mar 23, 2024 7:07 pm
Forum: Personal Investments
Topic: Can TIPS in a taxable account make sense?
Replies: 22
Views: 2686

Re: Can TIPS in a taxable account make sense?

Before you do that however,, make sure that you understand the tax consequences. If you don't fully understand how TIPS work, don't do it. If you don't understand OID and phantom income, don't do it. You can avoid this issue by holding TIPS funds, which will handle the tax situation for you. However, the only option for a long-term TIPS investment is PIMCO's LTPZ, with 0.20% expenses. Intermediate-term and short-term funds are available for lower expenses. How do the new Blackrock iShares iBonds TIPS ETF offerings fit into the TIPS fund puzzle? It looks like the current offerings can go out to 2033 initially so not super long-term but might work to get closer to age 70 in 2035, to start my social security benefit. We are looking for someth...
by hudson
Sat Mar 23, 2024 6:58 pm
Forum: Personal Finance (Not Investing)
Topic: 20-30X income, is that the "retirement rut"?
Replies: 135
Views: 20912

Re: 20-30X income, is that the "retirement rut"?

dekecarver wrote: Sat Mar 23, 2024 5:01 pm
The other thing I've learned from retirees and once again said to me recently, "You'll know when its time".
I heard the same thing, then experienced exactly that, leading to my first retirement.
It never happened in my second career. I could have continued, but I calculated that I no longer had to work.
by hudson
Sat Mar 23, 2024 6:51 pm
Forum: Investing - Theory, News & General
Topic: just a general comment about "too conservative" investors here
Replies: 246
Views: 40588

Re: just a general comment about "too conservative" investors here

If someone has a user registration newer than 2009 I pretty much assume they don't really know what they're talking about (unless it becomes clear they are just a newcomer to Bogleheads, not investing in general). If you've never experienced a severe multi-year downturn you are by definition an inexperienced investor. On that criterion I have experienced one (2000-03). I was not sophisticated enough in the late 1970s to really understand it - and of course in a general "bear" market there were crashes and rallies, as there were throughout the 1970s. 2008-09 was more like October 19, 1987. "All that is solid melts into air". The speed of it, and the pounding of the shocks. Until Gordon Brown made that speech, about baili...
by hudson
Sat Mar 23, 2024 4:47 pm
Forum: Personal Finance (Not Investing)
Topic: 20-30X income, is that the "retirement rut"?
Replies: 135
Views: 20912

Re: 20-30X income, is that the "retirement rut"?

Say you are in your 40s with a $100,000 salary with a NW of $2,000,000 or 20x Income to NW ratio You are not quite motivated to work harder in your career (e.g. staying in the office until 8pm) because your investments daily fluctuations is more than your salary. You are comfortable enough to give your boss/upper management the middle finger if he pulls a fast one on you . However, you are not quite ready to retire early yet as in today's economy, $2million doesn't carry your that far, especially in HCOL cities like NY or SF. Is that a career to retirement "rut"? My plan was to make it to social security FRA or full retirement age and retire if everything was good. That means no debt, a paid off house, and enough monthly income t...
by hudson
Sat Mar 23, 2024 1:37 pm
Forum: Personal Finance (Not Investing)
Topic: Should we have Long Term Care Insurance?
Replies: 34
Views: 2965

Re: Should we have Long Term Care Insurance?

Husband and I are retired, have no children or close relatives, and have a financially sound economy. We are currently in good health. I'll turn 67 this year and husband will turn 58. The only financial concern I have for the future is health care, should one of us have a long illness. Basic financial picture: Home is owned outright, debt-free No debt Ca. $2 million in savings Defined benefit pension with COLA, currently ca. $8500 per month. If I pre-decease my husband, he will get 50% of the pension for the rest of his life. T he pension covers all our current needs i ncluding a fair bit of discretionary spending (we retired at the end of 2017 and have not withdrawn from our nest egg). No SSN (I'll get ca. $200 per month due to minimal SS...
by hudson
Sat Mar 23, 2024 12:28 pm
Forum: Personal Investments
Topic: Considering a TIPS ladder. Is this the right approach?
Replies: 26
Views: 2750

Re: Considering a TIPS ladder. Is this the right approach?

Is this ishare the same the the TIP ETF offer in Vanguard? No. The iShares iBond ETF products are pretty unique in that they hold TIPS that mature in a single year so the duration decreases over time. Other TIPS funds typically hold TIPS in certain maturity ranges or all (usually above 1 year to maturity). I personally wouldn’t buy the iShare iBond TIPS products in a taxable account due to relatively low volume and popularity. I currently help my parents in law to build their portfolio. They are 63 and 65 years old. I also just started investing in index fund. They have 2 IRA and one join taxable initial amount at 80k. I set the AA in 40% BND and 60% in VTI and VFIAX. Are these three funds enough? I was looking into the TIP and see if I co...
by hudson
Sat Mar 23, 2024 9:04 am
Forum: Investing - Theory, News & General
Topic: Are TIPS funds useless?
Replies: 25
Views: 4231

Re: Are TIPS funds useless?

Looking back at most TIPS etfs, they all experienced negative downturns due to rising interest rates, albeit far less than total bond funds like BND, but it got me thinking, if there ever is rising inflation again, the feds will most likely raise rates again like this time, perhaps not as fast or high, but this will still cause negative affects on bond funds. the rate of return achieved by the TIPS funds was practically negated shortly after from the rising rates, so what was the point , why not just hold BND? Why not just hold BND? BND is OK, but it holds too many BBB bonds. I want AAA or better like nominal treasuries or CDs. It also has expenses TIPS ETFs useless? I like SCHP because it's expense ratio is probably the lowest at .03%. It...
by hudson
Fri Mar 22, 2024 12:38 pm
Forum: Personal Investments
Topic: Considering a TIPS ladder. Is this the right approach?
Replies: 26
Views: 2750

Re: Considering a TIPS ladder. Is this the right approach?

Is this ishare the same the the TIP ETF offer in Vanguard? No. The iShares iBond ETF products are pretty unique in that they hold TIPS that mature in a single year so the duration decreases over time. Other TIPS funds typically hold TIPS in certain maturity ranges or all (usually above 1 year to maturity). I personally wouldn’t buy the iShare iBond TIPS products in a taxable account due to relatively low volume and popularity. I currently help my parents in law to build their portfolio. They are 63 and 65 years old. I also just started investing in index fund. They have 2 IRA and one join taxable initial amount at 80k. I set the AA in 40% BND and 60% in VTI and VFIAX. Are these three funds enough? I was looking into the TIP and see if I co...
by hudson
Fri Mar 22, 2024 11:55 am
Forum: Personal Finance (Not Investing)
Topic: Do you tip hotel staff when checking out?
Replies: 145
Views: 6937

Re: Do you tip hotel staff when checking out?

lessismore22 wrote: Thu Mar 21, 2024 5:37 pm Curious to hear thoughts on leaving cash for the hotel staff when you check out of a room. If you leave a tip, how do you determine how much? If not, why not?
I was a bellhop in the summer of '72.
The tips were much appreciated. Tips made up for low pay. I made $30-40 a night. My bartender buddies made over $100 a night. Since they were riding with me, I had to wait an extra non-paid hour, but I got free drinks.

I leave $10 in the room for one night; more for more nights.
How do I determine how much? I want to be a much better than average tipper.

What do I think about the tipping habits of others? It's like personal finance, it's personal. No judgement by me.
by hudson
Thu Mar 21, 2024 10:47 am
Forum: Personal Consumer Issues
Topic: Growing Tomatoes in Five Gallon Buckets
Replies: 39
Views: 4462

Re: Growing Tomatoes in Five Gallon Buckets

Has anyone ever done this ? Are there any tips ? pitfalls ? I was thinking of maybe doing it on my patio. After tilling the garden, I build a wide mound....a little taller than the 5 gallon bucket. I use a post hole digger to make a hole big enough for a 5 gallon bucket which has lots of 1/4 inch holes drilled into the sides. The bucket goes in all the way. I groom the mound with a slight depression at the top to catch water. Outside the bucket, I plant 4 Better Boys. I put a gallon of manure or manure like stuff in the bottom of the bucket and fill it with water...hopefully the depression at the top catches the run off. Usually it leaks. Then I'll refill the bucket once a week. Then I'll put a cylinder of wire mesh with 6X6 inch squares o...
by hudson
Thu Mar 21, 2024 10:31 am
Forum: Personal Consumer Issues
Topic: funeral preparations
Replies: 48
Views: 4444

Re: funeral preparations

Quote from NYT 3/16/24 article: ..."The amount of decisions that have to be made within 24 to 72 hours to put on a funeral, especially if you aren't prepared or have pre-arrangements, is shocking"... So, I'm still kicking. What can I do to "prepare" for my funeral--which will be a cremation? It depends. If you are near the end and living in your final destination, maybe. If you still have 10-20 years to go, maybe not. I've helped work through 2 funerals...not a big deal. The funeral folks do the heavy lifting, the survivors just say yes or no and come up with the cash. I believe that funerals are for the survivors, not the deceased. I plan to leave it to them to decide what they want. I've already told them to go cheap....
by hudson
Thu Mar 21, 2024 9:03 am
Forum: Personal Consumer Issues
Topic: navigation system for car
Replies: 64
Views: 3369

Re: navigation system for car

At the risk of further insulting your flip phone, I’d get an older model smartphone for a few hundred dollars rather than bothering with a portable GPS. I agree. I've found that the smartphone based navigation products like Google Maps and others to be far superior than the stand alone units. Sure there's a learning curve. I know of several boomer types who won't or can't figure out any navigations systems. Anything that works is good technique. On a recent trip, an 80 year old friend tried to get a flip phone on WiFi in a no-phone-tower location. All of the more tech-savvy folks tried to get him on, but we were too far removed from flip phone tech. There was one character in the password that we couldn't solve. We let the poor old gentlem...
by hudson
Thu Mar 21, 2024 8:50 am
Forum: Personal Finance (Not Investing)
Topic: Long-Term Care/Protecting Assests
Replies: 89
Views: 4998

Re: Long-Term Care/Protecting Assests

Lee_WSP wrote: Wed Mar 20, 2024 2:30 pm I work in this field and I have no such plan. I hope to die quickly and painlessly, but if I'm stuck in a dementia ward, so be it. I won't be myself anyway and my descendants will be the ones making the decisions.

I hope to have enough to just private pay. But if not, that's life. I'll gift them enough while alive to give them a large leg up anyway.
I vote for the bolded part of the above plan.
The other part is worth considering.
by hudson
Thu Mar 21, 2024 7:53 am
Forum: Personal Investments
Topic: Considering a TIPS ladder. Is this the right approach?
Replies: 26
Views: 2750

Re: Considering a TIPS ladder. Is this the right approach?

SCHP is a great ETF. Is it a great fit for an 85 year-old in assisted living?
I don't know.
What would I want my go-to person to do for me in the same situation. (I'm very conservative)
Putting it in SCHP and calling it a day would sure be convenient and would be OK.
Putting it all in a low expense nominal treasury fund would also work.
If my go-to person had the skills, all individual TIPS or individual nominals would work...including CDs.
Duration? 10 years or less; it depends. You would be the best judge.
Maybe half TIPS and half nominals?
by hudson
Mon Mar 18, 2024 6:23 pm
Forum: Personal Investments
Topic: Can TIPS in a taxable account make sense?
Replies: 22
Views: 2686

Re: Can TIPS in a taxable account make sense?

nassau34 wrote: Mon Mar 18, 2024 3:37 pm If I've maxed out room in my tax deferred IRA with bonds and other highly taxed investments, and am using my tax-free retirement account (Roth IRA) to buy high-potential growth stock funds, does it make sense to purchase TIPS from a taxable account? I'm specifically thinking about the 10-year TIPS (reopening) about to be offered at auction. I'm trying to rotate out of a large T-bill holding.
My tax advantaged is almost all TIPS.
I hold TIPS in taxable so it makes sense to me.
by hudson
Mon Mar 18, 2024 6:16 pm
Forum: Personal Finance (Not Investing)
Topic: Use RMD to pay taxes
Replies: 30
Views: 2597

Re: Use RMD to pay taxes

I am now the tax guy for my MIL. She is 82, $2.8M with $275k in an ira that requires an RMD of $18k. She has a federal pension of $65k that withholds federal and state taxes each month. Also gets $20k of SS that has federal withholding. So she does have a pay as she goes tax setup. But she typically has an additional tax liability of $18k / year (federal and state total). Her old tax guy had her do estimated payments for that. I was thinking I should just designate her RMD to go $12k to federal taxes and $6k to state taxes. That will cover her tax liability for 2024 (with the withholding). 1. Can I do that? 2. When should I do that? It doesn't really matter to her when I do it because her income more than covers expenses. Thanks for your t...
by hudson
Mon Mar 18, 2024 2:13 pm
Forum: Personal Investments
Topic: advice needed investing $700K
Replies: 8
Views: 1509

Re: advice needed investing $700K

I'm new to Bogleheads and would appreciate your insight! I recently exercised a bunch of stock options and have about $700K to invest. age 60, retired, single total assets around $3.1M including the $700K cash from the options. current asset allocation without the cash is 70 stock / 30 Bonds. Desired allocation 65 stocks / 35 bonds once cash is invested. Of the $3.1M, ~680K is in deferred comp which will result in approximately $70 to $75K per year over the next 10 years. This covers most of my yearly costs. Current allocation on the deferred comp is 60 stock / 35 bonds / 5 REIT. Since the deferred comp will cover most of my costs over the next 10 years, I plan to defer social security until 70 (~45K per year). I don't really have any room...
by hudson
Mon Mar 18, 2024 12:44 pm
Forum: Personal Investments
Topic: Can I retire with $1.75M at age 43?
Replies: 169
Views: 12568

Re: Can I retire with $1.75M at age 43?

This is a general question. I dislike and almost hate my job and was wondering if I could retire today at age 43 with about $1.75M net worth. I am very frugal and have spent about $25k per year for more than a decade. Only recently has my cost gone up to $35k. I intend to move to a cheap location to keep cost down. I’ve read about a number of FIRE movement retirees like Mr money mustache and others who were able to retire very early. Of course these bloggers are not really retired making a lot of money, but I intend to TRULY retire for many decades. Is this realistic as a frugal single person? I would like some thoughts from bogleheads. Another point is that my time is limited on this planet and I value freedom and time doing what I want o...
by hudson
Sun Mar 17, 2024 5:59 am
Forum: Personal Investments
Topic: Bond Investing
Replies: 21
Views: 3023

Re: Bond Investing

Can you help me understand this statement better: "If you value safety in your "fixed income" and not see it evaporate 13% (intermediate term bond fund) to 30% (long term bond fund), stick to I-bonds." What are the percentages? Those are the losses experienced by Total Bond fund and Long Term Treasury Bond fund, respectively, in 2022. Just for clarity, loss of this kind is only felt if you sell your bonds at a loss. Rising interest rates caused people that bought into that fund yesterday to seem to have lost money today because the NAV adjusts for the new values going forward. However, people that bought yesterday fully expected they would be holding that fund for roughly the fund's duration, and during that time they w...
by hudson
Sat Mar 16, 2024 12:57 pm
Forum: Personal Investments
Topic: Bond Investing
Replies: 21
Views: 3023

Re: Bond Investing

Hello Forum, I am relatively new to bonds. I am 36 years old, married, and we currently have all our personal investments in VTSAX (90%) and VMFXX (10%)... aside from Employer 401k's, which are 80/20 e/b split. I am a bit stumped on how to diversify into bonds in 3 ways: (1) Types of bonds, (2) Amount of bonds, (3) adding/subtracting the allocations over time. - Vanguard Brokered CD's (these kind of scare me) In worry of potential future market fluctuations, I'm tempted to go into VSBSX for the next year or so... this seems like the best of both worlds: High rate of return for now, and not locked in if rates increase further... maybe this is a naive view... or maybe VBLAX is the way to go to lock in a high rate now. or maybe stop thinking ...
by hudson
Sat Mar 16, 2024 9:41 am
Forum: Personal Investments
Topic: Cash or CD's Instead of Bond Funds
Replies: 61
Views: 5678

Re: Cash or CD's Instead of Bond Funds

Raising hand! I am completely soured on bond funds, and decided to NEVER INVEST A PENNY MORE in any bond fund going forward. I am also, c ontrary to the Boglehead orthodoxy, am investing in Treasury bills and Treasury Notes to build up my "bonds" in my TAXABLE account (gasp!). So far $60k of I-bonds, $20k of T-bills. My eventual goal is to build up about $400k of "no-risk-to-principal" fixed income, which will be about 30% of my portfolio. As I add I-bonds and T-bills and T-notes (and a smattering of TIPS), I will be slowly draining away the VBTIX (Institutional version of Vanguard Total Bond fund) in my 401(k). No more bond funds? me too Treasury bills and notes contrary to Boglehead orthodoxy? Not any more. What's not...
by hudson
Sat Mar 16, 2024 7:19 am
Forum: Personal Finance (Not Investing)
Topic: Long Term Care Insurance
Replies: 448
Views: 41421

Re: Long Term Care Insurance

WoW2012 wrote: Fri Mar 15, 2024 8:49 pm
hudson wrote: Fri Mar 15, 2024 6:16 pm
martincmartin wrote: Thu Jan 27, 2022 8:11 am
So I'm torn between getting it or trying to self insure.

How have others approached this decision? Any way to think about it to help me?
I've looked at quotes a number of times; I never saw a good deal that fit my budget.
To me, it's not insurance, it's a pre-payment for something that you may never use.
If an LTCi premium doesn't fit your budget, how the h*ck do you think you can self-insure?
That's a fair question, but it sounds like a salesperson's most effective slam dunk reply. :)
I can afford LTCI but I've aged out. The deal was never right; it cost too much. I could also buy an overpriced luxury car, but I'm not interested.
How to self insure? I plan to wing it.
by hudson
Sat Mar 16, 2024 7:06 am
Forum: Personal Finance (Not Investing)
Topic: Long Term Care Insurance
Replies: 448
Views: 41421

Re: Long Term Care Insurance

So I'm torn between getting it or trying to self insure. How have others approached this decision? Any way to think about it to help me? I've looked at quotes a number of times; I never saw a good deal that fit my budget. To me, it's not insurance, it's a pre-payment for something that you may never use. How is it different from other insurance? I have LTCi but hope I never have to use it just like I wouldn't want to use my home, car, or life insurance. TravelforFun Dental insurance is mostly just a pre-payment. It doesn't cover the big stuff. Modern LTCI is also mostly pre-payment. It's expensive and it doesn't cover everything. I'm sure it's that way because insurance companies have to make money. It's a luxury purchase. I don't know of ...
by hudson
Fri Mar 15, 2024 6:16 pm
Forum: Personal Finance (Not Investing)
Topic: Long Term Care Insurance
Replies: 448
Views: 41421

Re: Long Term Care Insurance

martincmartin wrote: Thu Jan 27, 2022 8:11 am
So I'm torn between getting it or trying to self insure.

How have others approached this decision? Any way to think about it to help me?
I've looked at quotes a number of times; I never saw a good deal that fit my budget.
To me, it's not insurance, it's a pre-payment for something that you may never use.

Bill Bernstein in Four Pillars of Investing, 2d Edition said:
"
...long-term care, for which insurance solutions are either inadequate or prohibitively expensive."

"Probably the most fraught insurance area is long-term care which over the past decade has seen dramatically increasing premiums and decreasing benefits."
by hudson
Fri Mar 15, 2024 8:11 am
Forum: Personal Investments
Topic: Cash or CD's Instead of Bond Funds
Replies: 61
Views: 5678

Re: Cash or CD's Instead of Bond Funds

Fixed income assets include any variety of things from large buried in the basement to some kind of risky long term high yield bonds. People hold any variety of combinations of all the things in that potential list. While the extremes mentioned just above would be very rare you would certainly find plenty of people holding CDs, for example, rather than bond funds. It might be useful to be more specific regarding what your question really amounts to. Otherwise the answer is just a simple yes. I don't have a good understanding of bond funds, TIPS, etc, so to achieve my AA in my Roth IRA, could I and does it make sense to hold CDs in a tax-deferred account? CDs in tax deferred? yes To understand treasuries including TIPS and bond funds? Buy $...
by hudson
Fri Mar 15, 2024 7:58 am
Forum: Personal Finance (Not Investing)
Topic: Letter to heir - what would you include?
Replies: 90
Views: 7801

Re: Letter to heir - what would you include?

Yearly, I send a letter to those who need it with information on where to find what is needed.
Thanks for bringing this up as I'm a month late!
It's short and sweet.
Those folks already have a copy of my final papers.
by hudson
Fri Mar 15, 2024 7:34 am
Forum: Personal Investments
Topic: advice needed investing $700K
Replies: 8
Views: 1509

Re: advice needed investing $700K

I'm new to Bogleheads and would appreciate your insight! I recently exercised a bunch of stock options and have about $700K to invest. age 60, retired, single total assets around $3.1M including the $700K cash from the options. current asset allocation without the cash is 70 stock / 30 Bonds. Desired allocation 65 stocks / 35 bonds once cash is invested. Of the $3.1M, ~680K is in deferred comp which will result in approximately $70 to $75K per year over the next 10 years. This covers most of my yearly costs. Current allocation on the deferred comp is 60 stock / 35 bonds / 5 REIT. Since the deferred comp will cover most of my costs over the next 10 years, I plan to defer social security until 70 (~45K per year). I don't really have any room...
by hudson
Fri Mar 15, 2024 7:21 am
Forum: Investing - Theory, News & General
Topic: What is the appeal of Robinhood
Replies: 85
Views: 6528

Re: What is the appeal of Robinhood

gavinsiu wrote: Wed Mar 13, 2024 4:52 pm I have seen a few post about the Robinhood and have heard about it mostly in association with the Game Stop Short Squeeze. What is the appeal of Robinhood out of curiousity? Why would one go with Robinhood instead of say Schwab, Vanguard, or Fidelity?
Why would anyone go to Robinhood? inexperience?
by hudson
Fri Mar 15, 2024 7:13 am
Forum: Personal Consumer Issues
Topic: "22 of the funniest novels since Catch-22" (acc. to the NYT)
Replies: 35
Views: 4058

"Where are the Snowdens of yesteryear?"

“Some men are born mediocre, some men achieve mediocrity, and some men have mediocrity thrust upon them. With Major Major (Major Major Major Major) it had been all three. Even among men lacking all distinction he inevitably stood out as a man lacking more distinction than all the rest, and people who met him were always impressed by how unimpressive he was.”
― Joseph Heller, Catch-22

Catch-22 Quotes

https://www.goodreads.com/work/quotes/814330-catch-22
by hudson
Fri Mar 15, 2024 6:58 am
Forum: Personal Investments
Topic: Cash or CD's Instead of Bond Funds
Replies: 61
Views: 5678

Re: Cash or CD's Instead of Bond Funds

DireStraits wrote: Thu Mar 14, 2024 12:51 pm Is anyone holding cash or CD's in lieu of bond funds to achieve the proper asset allocation?
I hold all treasuries and CDs. (AA= 0/100) I own zero mutual funds or ETFs.
Why pay even .03% expenses if you can easily do it yourself?
I learned how by reading Kevin M's posts; then I bought and promptly sold 10 different kinds of treasuries.
I still have a lot to learn.
by hudson
Fri Mar 15, 2024 6:46 am
Forum: Personal Finance (Not Investing)
Topic: The best game-changing financial advice you ever received (or "discovered")
Replies: 219
Views: 25612

Re: The best game-changing financial advice you ever received (or "discovered")

TRC wrote: Thu Mar 14, 2024 9:52 pm Becoming completely debt free. There is no such thing as good debt.
Agree!
Don't retire until you are mortgage and debt free.
Save up and buy vehicles without a loan.
Stop spending and start saving.
Do your own investing; strive for a 0% expense ratio.
With fixed income, no need to buy a mutual fund or ETF; buy treasuries and CDs unless munis are a good fit.
Use AAA rated munis.
If you don't need to take risk, don't. (From Larry Swedroe: viewtopic.php?p=1372822#p1372822)
Long TIPS and short treasuries are almost riskless (Bill Bernstein: https://www.advisorperspectives.com/art ... at-age-104)
by hudson
Fri Mar 15, 2024 6:18 am
Forum: Personal Investments
Topic: Liquid cash for 5year horizon at 5% apy
Replies: 16
Views: 1653

Re: Liquid cash for 5year horizon at 5% apy

Hello, I want to keep say $100-200k of easily available money that can be converted to cash quickly maybe with loss of interest or less than 1% loss of principal. But still get above 5%+ apy for 5 years. I see most CDs are paying less than 5% for 5 year terms. This is mostly my sleep well money. Is this doable with some type of investments? :annoyed 5% for 5 years? not possible CDs instantly available with less than 1% loss of principal? not possible Rolling Treasury bills available within 2 days with less than 1% loss of principal? possible but not guaranteed Many brokerage settlement accounts are paying out around 5% for now. As you know, that can change. High yield savings might be an option; they aren't paying 5% and their rates are fl...
by hudson
Fri Mar 15, 2024 6:00 am
Forum: Personal Investments
Topic: Bond Investing
Replies: 21
Views: 3023

Re: Bond Investing

Hello Forum, I am relatively new to bonds. I am 36 years old, married, and we currently have all our personal investments in VTSAX (90%) and VMFXX (10%)... aside from Employer 401k's, which are 80/20 e/b split. I am a bit stumped on how to diversify into bonds in 3 ways: (1) Types of bonds, (2) Amount of bonds, (3) adding/subtracting the allocations over time. - Vanguard Brokered CD's (these kind of scare me) In worry of potential future market fluctuations, I'm tempted to go into VSBSX for the next year or so... this seems like the best of both worlds: High rate of return for now, and not locked in if rates increase further... maybe this is a naive view... or maybe VBLAX is the way to go to lock in a high rate now. or maybe stop thinking ...
by hudson
Fri Mar 15, 2024 5:44 am
Forum: Personal Finance (Not Investing)
Topic: Mental health or Money: navigating the OMY question
Replies: 48
Views: 4972

Re: Mental health or Money: navigating the OMY question

For some time my plan has been to retire at age 60, when I reach an important age milestone for my defined benefit pension plan. But now, with retired spouse, severe burnout, and portfolio that has grown to 110% of target, I am considering retiring now. That would involve choosing a postponed pension payment (to avoid age-related haircut of about 15%) and using Cobra for healthcare for a year, and covering expenses out of the portfolio. This would end up costing a net of around $250,000, in after-tax NPV terms. The effect on monthly cash flows would be fairly slight. We would have no trouble maintaining spending at the current level, absent catastrophic and sustained stock market losses. The responsible thing is just to suck it up for 52 m...
by hudson
Thu Mar 14, 2024 7:02 pm
Forum: Personal Finance (Not Investing)
Topic: What's your primary credit card?
Replies: 117
Views: 10619

Re: What's your primary credit card?

Fidelity 2% Visa/Elan
by hudson
Thu Mar 14, 2024 9:47 am
Forum: Investing - Theory, News & General
Topic: Holding 100% stocks after FI best option for longer time horizons?
Replies: 88
Views: 10578

Re: Holding 100% stocks after FI best option for longer time horizons?

Considering our "total portfolio" as Charles Ellis would frame it the amount in equities is quite manageable. My wife's and my earnings capacity, our house, furniture, pension benefits, and other solids make our 100% equity allocation in our portfolio look quite reasonable. I might temporarily hold some cash or treasury bonds from to accumulate money for large purchases (i.e. home renovations) but other than that I don't see any reason to own bonds. However, we are lucky and life in a country with a great social safety net (Germany) where job loss or medical bills are not a problem. I enjoy my job and hope to work as long as possible. Investing is something I do because I like watching the numbers go up and down and I don't want ...
by hudson
Wed Mar 13, 2024 7:51 pm
Forum: Personal Investments
Topic: Anyone buying a portfolio of corporate bonds instead of Treasuries?
Replies: 10
Views: 1073

Re: Anyone buying a portfolio of corporate bonds instead of Treasuries?

I have a small basket of stocks I have invested in over the years when they were severely underpriced. It turns out that the bonds of these companies are now underpriced and trading as low as 80 cents on the dollar . This is due to two intertwined reasons: i) Treasuries yield 5+% now and ii) As these companies are investment grade their coupon was 4.5% I'm not asking for actual bonds to invest in (though suggestions are welcome), rather the mechanics and pitfalls of investing into corporate bonds . I can buy them in my Vanguard brokerage account easy enough but I've never actually bought a corporate bond before. Investment grade bonds are more like stocks...risky. I would stick with treasuries and CDs for fixed income. AAA munis are probab...
by hudson
Tue Mar 12, 2024 10:58 am
Forum: Investing - Theory, News & General
Topic: Holding 100% stocks after FI best option for longer time horizons?
Replies: 88
Views: 10578

Re: Holding 100% stocks after FI best option for longer time horizons?

msterrr wrote: Sat Mar 09, 2024 7:12 pm
Is a 100% stock / percent of portfolio withdrawal strategy really a reasonable approach to longer time horizons?

Alternatively, are there reasons to avoid this approach (if one is comfortable with the flexibility required)?
Maybe if you are holding much more stocks than you'll ever need.
Otherwise, one might need a safe pile of treasuries including TIPS.

If you haven't already, consider reading a book or two by Bill Bernstein.

https://www.amazon.com/Ages-Investor-Cr ... oks&sr=1-2
by hudson
Tue Mar 12, 2024 10:34 am
Forum: Personal Investments
Topic: How is a broker going to make money off me?
Replies: 62
Views: 6056

Re: How is a broker going to make money off me?

Settlement Fund: Fidelity charges more and pays less
That's no big deal to me because I keep my settlement fund low.
I probably make up the difference with my Fidelity 2% VISA card.

Vanguard settlement fund:
ER = .11
SEC = 5.26%

Fidelity settlement fund
ER = .42
SEC = 4.96%

My main brokerage is Vanguard; I put some funds in Fidelity years ago to see if I'd like it better.
I see lots of pluses, but I'll likely stay put.
by hudson
Mon Mar 11, 2024 6:55 pm
Forum: Personal Investments
Topic: Treasuries - Up or Down rest of 2024
Replies: 20
Views: 1875

Re: Treasuries - Up or Down rest of 2024

...I am trying to decide which to buy - short term treasuries (VUSXX) fund or an 11 - 12 month CD. Both around 5.N% return right now... Treasuries have easier liquidity than CDs so I'd go in that direction. I've stepped aside from BND and have been using primarily 6 and 12 month t-bills for fixed income the last couple of years. The SEC 30-day yield on BND is now around 4.5% so I' m tempted to call it a day and take the easy route with BND. You can squeeze yield from a lot of different places but its getting harder. If I'm only squeezing an extra 0.5% I'm beginning to lose interest. On $100K that extra 0.5% is $500 a year, maybe rounding error over the course of a year. I don't think that BND is currently paying 4.5%. On Feb. 6, it paid ou...
by hudson
Mon Mar 11, 2024 6:41 pm
Forum: Investing - Theory, News & General
Topic: Now that long TIPS yields are 60 bp off their highs I will…
Replies: 2953
Views: 623525

Re: Now that long TIPS yields are 60 bp off their highs I will…

anoop wrote: Mon Mar 11, 2024 3:49 pm
Tom_T wrote: Mon Mar 11, 2024 3:05 pm
anoop wrote: Mon Mar 11, 2024 9:57 am Today I sold out of all my TIPS. I had been thinking about this for a while. I don't think they are a good product *for me* since the way inflation is measured doesn't seem to have any correlation to my spending.
What is your alternative? Nominal bonds have no gurantee against inflation. Stocks are volatile.
Unfortunately, there is none. :(
Good question; good answer.
My plan is to own short, intermediate and ten year nominals along with duration matched TIPS.
by hudson
Mon Mar 11, 2024 12:23 pm
Forum: Personal Investments
Topic: Treasuries - Up or Down rest of 2024
Replies: 20
Views: 1875

Re: Treasuries - Up or Down rest of 2024

Yeah, seriously huge question but I am looking for opinions. I am trying to decide which to buy - short term treasuries (VUSXX) fund or an 11 - 12 month CD. Both around 5.N% return right now. I'm thinking if the treasury return starts going down, sell and buy VUSXX. Opinions? Thanks, Jerry I'm trying to figure that out myself. It's an ongoing challenge. I like to kind of match durations of the fixed income with when I'll likely need to spend the money. I'm terrible at predicting rates. For the money that I want to invest in a few days, I'm thinking half nominal ten year treasuries and half ten year TIPS. I think that the 10 year nominals are paying around 4%. The 10 year TIPS are paying around 1.75%. I'm also thinking that 10 years is too ...
by hudson
Sun Mar 10, 2024 8:38 pm
Forum: Investing - Theory, News & General
Topic: William Bernstein On the Financial Industry
Replies: 81
Views: 10161

Re: William Bernstein On the Financial Industry

That's exactly right. I think what some on this thread find confusing is that there's no inconsistency between that statement and the fact that 95% of advisors and 99% of brokers are harmful to your financial health. I agree! Many folks need help. If I was one of those people, I'd just go to Vanguard and pay their .03% . That's lower than any advisors that I've hear of and the trust is there. If someone is patient enough to hang around here, they can be their own advisor and get their expenses close to 0. In case anyone has not yet correct it, it is 0.3%, not .03%. Also, I talked to one of those people twice to get an idea of what they do and I was not impressed. Completely un-independent. Will only put you in Vanguard funds. Would not adv...