Search found 52 matches

by unbiased
Fri Sep 18, 2020 10:04 pm
Forum: Personal Investments
Topic: Alternative Investments
Replies: 34
Views: 2824

Re: Alternative Investments

Hey alwayspassive, let us know your rationale for the alternatives. If you're looking for INCOME, that's one thing. BUT, if it's for negative correlation with your equity holdings to hedge your portfolio, that's another. I've explored them quite a bit, and dibbled and dabbled over the years. Histori...
by unbiased
Fri Sep 18, 2020 9:49 pm
Forum: Personal Investments
Topic: Advice re: Long Term Treasury Bond Fund
Replies: 9
Views: 1018

Re: Advice re: Long Term Treasury Bond Fund

Main reason for LT treasuries is their well-established negative correlation with stocks. That's it. It's not for income at this point, it's insurance. IF (a big "if") LT Treasuries ever depreciate--and it's unknown whether the FED will let that happen in a dramatic fashion--you can always rebalance...
by unbiased
Tue Sep 15, 2020 2:56 pm
Forum: Personal Investments
Topic: Anyone successfully living off dividends & interest?
Replies: 204
Views: 20324

Re: Anyone successfully living off dividends & interest?

I'm not sure why you are not desiring to use capital gains for withdrawal strategy. Including them allows for a non-8 figure portfolio to achieve your goals. Thanks for sharing your experience--I really appreciate hearing the personal stories from those succeeding in their retirement strategy. Like...
by unbiased
Mon Sep 14, 2020 9:02 pm
Forum: Personal Investments
Topic: Unhedged international bond fund as hedge against falling dollar
Replies: 16
Views: 566

Re: Unhedged international bond fund as hedge against falling dollar

I have a small allocation in unhedged corporate bonds. This is not a "hedge" against a falling dollar . Such moves are difficult to time and the only way to meaningfully hedge is to carry a very high allocation -- subjecting my portfolio to unacceptable gyrations. However, I do like to have a small ...
by unbiased
Sun Sep 13, 2020 8:36 pm
Forum: Personal Investments
Topic: question for the bond fund experts out there
Replies: 12
Views: 1044

Re: question for the bond fund experts out there

I'm not a fan of ultra-short bond funds, and would especially avoid them since you have access to a stable value fund. Ultra short offers little yield and, while they usually don't fluctuate wildly in value, they always seem to do so just when you think you need them. Look at the below chart of its ...
by unbiased
Sun Sep 13, 2020 8:24 pm
Forum: Personal Investments
Topic: Advice needed on current portfolio :)
Replies: 18
Views: 1657

Re: Advice needed on current portfolio :)

I've done 70/30 for most of my accumulation phase and am glad I did. For taxable, mostly muni funds. They have helped me weather three market crashes and given me available capital to rebalance into equities. Especially with 401(k)s, you're really only able to make new contributions on a regular bas...
by unbiased
Sun Sep 13, 2020 8:14 pm
Forum: Personal Investments
Topic: How to redeem mature munis?
Replies: 2
Views: 255

Re: How to redeem mature munis?

I would definitely talk to Fidelity. While not bonds, the (very) few paper stock certificates I owned I turned over to my broker when I opened an account and they held it in street name so it appeared in my account and I could then buy/sell/trade the asset.
by unbiased
Sun Sep 13, 2020 8:12 pm
Forum: Personal Investments
Topic: Thoughts on VTWAX Rebalancing
Replies: 19
Views: 1259

Re: Thoughts on VTWAX Rebalancing

I thought a market-cap fund like this wouldn't "rebalance" often since the value is what the value is. If the U.S. maintains 55% of the world's value in the stock market by capitalization, it remains where it "is." If the value of its market declines in relation to other markets, it will just "decli...
by unbiased
Sun Sep 13, 2020 8:16 am
Forum: Personal Investments
Topic: Anyone Else Investing in SPACs (Special Purpose Acquisition Companies)?
Replies: 17
Views: 2055

Re: Anyone Else Investing in SPACs (Special Purpose Acquisition Companies)?

I had a few hundred dollars laying around in one of my accounts that I was willing to throw away (long story, but it’s a meaningless amount compared to my 3 fund portfolio) and I did buy the units a few days ago. I confess I did zero research I just knew it’s the biggest SPAC out there, I didn’t ev...
by unbiased
Sat Sep 12, 2020 7:41 pm
Forum: Personal Investments
Topic: Anyone successfully living off dividends & interest?
Replies: 204
Views: 20324

Re: Anyone successfully living off dividends & interest?

I have been living off mostly bond fund dividends since I retired at 45, 12 years ago. My portfolio was under $1M back then (late 2008) but has risen to around $1.6M today. About 2/3 of it is in a non-retirement account, the portion which generates all the dividend income used to cover my bills. I ...
by unbiased
Sat Sep 12, 2020 4:17 pm
Forum: Personal Investments
Topic: Anyone successfully living off dividends & interest?
Replies: 204
Views: 20324

Re: Anyone successfully living off dividends & interest?

What is your definition of capital preservation? I imagine you have in mind that the number of shares of whatever you are invested in is not reduced, presumably by selling. But the question is, what do you consider your situation to be if the number of shares is constant but the value of a share fa...
by unbiased
Sat Sep 12, 2020 2:30 pm
Forum: Personal Investments
Topic: Anyone successfully living off dividends & interest?
Replies: 204
Views: 20324

Re: Anyone successfully living off dividends & interest?

We can differ whether that is part of what the OP is asking. It would be nice if the OP would come back and clarify. I think you want me to clarify what I mean by "income only?" Basically, a portfolio that puts capital preservation first and foremost -- and throws off enough income/dividends/intere...
by unbiased
Sat Sep 12, 2020 2:20 pm
Forum: Personal Investments
Topic: Anyone successfully living off dividends & interest?
Replies: 204
Views: 20324

Re: Anyone successfully living off dividends & interest?

Wow I stepped away for a day and look at all the replies! Thank you all for the roads to go down! Just to be clear, I'm debating how to structure my retirement allocation and that's why I asked. I'm not here to defend/promote an "income-only" approach, just to gather personal stories from anyone who...
by unbiased
Sat Sep 12, 2020 12:51 pm
Forum: Personal Investments
Topic: Where to invest fixed income?
Replies: 26
Views: 3385

Re: Where to invest fixed income?

Hey CSProf, did you ever say what you wanted to prioritize for this allocation (i.e. income, total return, etc.)? I think you need to structure your bond allocation based on that. It doesn't have to be complex. You can just do a total bond market index, a dash of international and EM, and then alloc...
by unbiased
Fri Sep 11, 2020 9:25 pm
Forum: Personal Investments
Topic: Anyone successfully living off dividends & interest?
Replies: 204
Views: 20324

Anyone successfully living off dividends & interest?

I'm a few years out from retirement and am exploring a bunch of different portfolio strategies. I won't have enough money to just dump it in a bond fund (unless it's some volatile CEF) and "live off the interest" like our grandparents did. I've run the numbers every which way and in this low-interes...
by unbiased
Fri Sep 11, 2020 9:12 pm
Forum: Personal Investments
Topic: GNMA vs Total Bond Index in a high tax state (update: wrong premise, Gama are taxable)
Replies: 11
Views: 467

Re: GNMA vs Total Bond Index in a high tax state (update: wrong premise, Gama are taxable)

This document from RBC lists the federal agencies with exemption at the state level. https://www.rbcwm-usa.com/resources/file-687493.pdf GNMA is not one of them, but I was surprised that TVA and FHLB are. Glad you brought this up as I learned something new. Always thought ALL agency bonds were taxab...
by unbiased
Fri Sep 11, 2020 9:06 pm
Forum: Personal Investments
Topic: GNMA vs Total Bond Index in a high tax state (update: wrong premise, Gama are taxable)
Replies: 11
Views: 467

Re: GNMA vs Total Bond Index in a high tax state

Is that just California that exempts tax on GNMA? I know a portion of GNMA payment is return-of-principal, albeit not taxable state/federal, but I don't see that it has the same tax treatment as, say, US Treasuries, which is exempt at the state and local level.
by unbiased
Fri Sep 11, 2020 8:06 pm
Forum: Personal Investments
Topic: Poor performing portfolio
Replies: 71
Views: 7308

Re: Poor performing portfolio

Unless you were exclusively in mega cap US growth this year or long term treasuries, very few are "up" -- unless you timed the market perfectly by investing a boatload in March. Also, make sure you check your Standard Deviation. Often more important than "just" returns are your risk-adjusted returns...
by unbiased
Fri Sep 11, 2020 7:51 pm
Forum: Personal Investments
Topic: Considering switching to unhedged international bonds
Replies: 20
Views: 1272

Re: Considering switching to unhedged international bonds

Interesting! Was this just due to the low/negative yields of government bonds? Looks like the spread in yields between IGOV and IBND is currently very low. Just 0.08%. So I think I'll probably stick with government bonds for now. Or did you have concerns about defaults? My understanding was that mo...
by unbiased
Fri Sep 11, 2020 12:43 pm
Forum: Personal Investments
Topic: Anyone Else Investing in SPACs (Special Purpose Acquisition Companies)?
Replies: 17
Views: 2055

Re: Anyone Else Investing in SPACs (Special Purpose Acquisition Companies)?

Ackman's company split today common vs. warrants. Anyone decide whether they want to purchase the warrants or the common? Somewhat hard to get information outside the press release. https://pstontine.com/wp-content/uploads/2020/09/Pershing-Square-Tontine-Holdings-Ltd.-Notes-Upcoming-Automatic-Unit-S...
by unbiased
Thu Sep 10, 2020 8:43 pm
Forum: Personal Investments
Topic: Where to invest fixed income?
Replies: 26
Views: 3385

Re: Where to invest fixed income?

In this environment, you'll need to prioritize: ballast vs. income vs. interest rate risk, etc. If ballast, only long-term treasuries (15+ years) offer any meaningful equity hedge, at least historically. Unfortunately, you're giving up a LOT of income and taking a high interest rate risk. Look at ED...
by unbiased
Thu Sep 10, 2020 4:55 pm
Forum: Personal Investments
Topic: Gripes with VT (Vanguard Total-World ETF, ER .08)?
Replies: 34
Views: 3207

Re: Gripes with VT (Vanguard Total-World ETF, ER .08)?

I own its sister fund, VTWAX. Like you, I'm still debating whether to keep it. The fund does what it is designed to do, and well. So I don't have any gripe with its execution, just that I'm not convinced it's an "ideal" solitary construction for me. For example, I tend to want to overweight EM and U...
by unbiased
Wed Sep 09, 2020 7:50 pm
Forum: Personal Investments
Topic: Teacher Retirement Service Purchase Option Analysis Needed
Replies: 27
Views: 2137

Re: Teacher Retirement Service Purchase Option Analysis Needed

Can the plan sponsors provide you with an estimate of what you get WITH the purchase vs. the benefit without purchase? It helps to know how much of a difference the purchase makes overall. Once you get that number, try to figure out how much you would need to save to "beat it." Generally, it usually...
by unbiased
Wed Sep 09, 2020 12:42 pm
Forum: Personal Investments
Topic: Requesting advice for financial planning
Replies: 12
Views: 1147

Re: Requesting advice for financial planning

Great replies here so far. I'm a DIY'er too a few years out from retirement. Honestly I thought I could just switch to your #1 suggestion and "figure it out." But PHEW retirement planning is wayyy more complicated than the accumulation phase. It's just hard for retail investors to get access to the ...
by unbiased
Wed Sep 09, 2020 12:28 pm
Forum: Personal Investments
Topic: tips on managing multiple accounts, especially taxable vs. non-taxable
Replies: 7
Views: 676

tips on managing multiple accounts, especially taxable vs. non-taxable

I've got too many accounts, but outside of consolidating my taxable accounts theres not much I can do: 401(k) at work Roth IRA Vanguard Taxable Account Schwab Taxable Account Schwab Joint Account with Spouse Years ago, I started managing these accounts as "one portfolio"--so basically I put the "tax...
by unbiased
Wed Sep 09, 2020 12:01 pm
Forum: Personal Investments
Topic: Who is liable for this?
Replies: 46
Views: 6375

Re: Who is liable for this?

When you were forced to "consent" to 1000s of pages (as if you had a choice) when your account was set up, I can 100% guarantee you that their lawyers ensured that no matter what happened -- even if it was their fault -- that YOU would be liable. Even if you wanted to dispute it (which you should co...
by unbiased
Wed Sep 09, 2020 8:39 am
Forum: Personal Investments
Topic: Considering switching to unhedged international bonds
Replies: 20
Views: 1272

Re: Considering switching to unhedged international bonds

I think your reasoning is sound but the execution of this strategy for retail investors is very challenging in this illiquid market. It is very difficult to get pure inexpensive exposure, especially in the index space. Earlier this year, I researched this topic extensively when the dollar was at all...
by unbiased
Wed Sep 09, 2020 8:15 am
Forum: Personal Investments
Topic: Do you invest in IGOV or BWX? Seeking advice.
Replies: 4
Views: 514

Re: Do you invest in IGOV or BWX? Seeking advice.

Both were on my list for international bonds earlier this year, but I didn't like the risk/return profile for international government paper at this time. Maybe later. I instead invested in international corporate bonds for diversification. I'll check out your other thread as well.
by unbiased
Wed Sep 09, 2020 8:12 am
Forum: Personal Investments
Topic: Moving cash into equities - portfolio advice
Replies: 8
Views: 1146

Re: Moving cash into equities - portfolio advice

If you're anxious, you could try the " pyramid up " strategy. Despite research showing "lump sum" investing overperforms, I also harbor reservations of jumping in all at once. However, if you "pyramid up" (basically invest your next set amount after you've had a 2-5% gain on the initial investment) ...
by unbiased
Wed Sep 09, 2020 7:50 am
Forum: Investing - Theory, News & General
Topic: Any option traders?
Replies: 57
Views: 6455

Re: Any option traders?

Hey for those options traders, anyone come up with a better "option" than "roll out and down" on a deep in-the-money short put? A trade went against me and while I'm OK now, I haven't located any other alternatives besides a rollout to unwind an ITM short put (besides getting assigned the shares). M...
by unbiased
Wed Sep 09, 2020 7:44 am
Forum: Investing - Theory, News & General
Topic: "Active" aspects of passive investing
Replies: 16
Views: 1470

Re: "Active" aspects of passive investing

For me, choosing weights of international vs. U.S., whether to hold discrete funds in emerging markets, where to put funds (taxable vs. nontaxable), and trying to manage multiple accounts--all on my short list. These are all "active" decisions subject to manager (me) risk. How often do you make tho...
by unbiased
Mon Sep 07, 2020 10:01 pm
Forum: Investing - Theory, News & General
Topic: How long could you live off your portfolio if the worst happened?
Replies: 110
Views: 10751

Re: How long could you live off your portfolio if the worst happened?

I've mentally "bucketed" for this reason. I have 10 years in "safer" investments to survive a prolonged downturn in equities. If equities decline for 10 years straight, I think bullets and food will be the most important "assets" as our whole system is built on the premise that stocks "always go up."
by unbiased
Mon Sep 07, 2020 9:56 pm
Forum: Investing - Theory, News & General
Topic: Any option traders?
Replies: 57
Views: 6455

Re: Any option traders?

I sometimes sell puts but regularly do the "wheel" on TLT -- sell covered calls, if called, sell puts. Currently selling puts on TLT after the recent spike called my shares away. I've only been doing this a year so still consider myself a "novice." I like the yield, but recognize the capital appreci...
by unbiased
Mon Sep 07, 2020 9:42 pm
Forum: Investing - Theory, News & General
Topic: "Active" aspects of passive investing
Replies: 16
Views: 1470

Re: "Active" aspects of passive investing

For me, choosing weights of international vs. U.S., whether to hold discrete funds in emerging markets, where to put funds (taxable vs. nontaxable), and trying to manage multiple accounts--all on my short list. These are all "active" decisions subject to manager (me) risk.
by unbiased
Mon Sep 07, 2020 9:37 pm
Forum: Personal Investments
Topic: Prepay student loans OR megabackdoor Roth? (26 y/o in Biglaw; 190k salary; 180k debt)
Replies: 82
Views: 5155

Re: Prepay student loans OR megabackdoor Roth? (26 y/o in Biglaw; 190k salary; 180k debt)

Thanks, unbiased. It’s helpful to hear that perspective to amp myself up on investing. Did you ever feel that the debt weighed you down/affected your lifestyle and career choices? The last thing that I want is for me to exacerbate the stress and pressure of biglaw unnecessarily by prolonging the me...
by unbiased
Mon Sep 07, 2020 9:23 pm
Forum: Personal Investments
Topic: Muni Bonds and Risk (VWIUX)
Replies: 29
Views: 2674

Re: Muni Bonds and Risk (VWIUX)

Thanks! Yeah seems like those institutional investors caused the crash. It also seems partly because the Fed was slow to step in. If I recall correctly, TIPS had a liquidity issue as well during the Great Recession. Maybe the Fed needs to do a better job keeping munis liquid. Is there any way to kn...
by unbiased
Mon Sep 07, 2020 9:57 am
Forum: Investing - Theory, News & General
Topic: Hedging interest rate risk?
Replies: 32
Views: 2296

Re: Hedging interest rate risk?

You will want to unpack what you are trying to do. First, why do you want to hedge? What risk are you exposed to? I will point out that banks need to hedge interest rate risk. They have a fair amount of assets and liabilities that are interest rate sensitive. It makes sense here. And banks can, to ...
by unbiased
Mon Sep 07, 2020 9:19 am
Forum: Personal Investments
Topic: To backdoor Roth or not to backdoor Roth
Replies: 11
Views: 817

Re: To backdoor Roth or not to backdoor Roth

Do it. Roth is so flexible, you can feel free to "withdrawal your contributions" at anytime if you change your mind. Just mind some of the rules, 5-year waiting period, etc. I doubt you'll change your mind though. Also, Roth assets have more benefits besides tax-advantage, depending on your state th...
by unbiased
Sun Sep 06, 2020 7:46 pm
Forum: Investing - Theory, News & General
Topic: Total International vs separate funds
Replies: 28
Views: 2723

Re: Total International vs separate funds

I like discreet positions for international, but only because I want to take advantage of region-specific dips as well as active management in some cases. I also have multiple accounts (401K, Roth, etc.), so putting that exposure in each account has required a certain amount of variability in funds....
by unbiased
Sun Sep 06, 2020 7:31 pm
Forum: Investing - Theory, News & General
Topic: Hedging interest rate risk?
Replies: 32
Views: 2296

Hedging interest rate risk?

Anyone making any adjustments to their bond allocations to hedge rising rates or are you planning to just "roll with it" when it happens. What scares me about the medium term for bonds is that I've never in my 20+ investing career experienced a sustained rising rate environment. Sure, we had a taste...
by unbiased
Sun Sep 06, 2020 7:15 pm
Forum: Personal Investments
Topic: [Where can I put my cash (taxable)? What if I get sued?]
Replies: 8
Views: 1165

Re: [Where can I put my cash (taxable)? What if I get sued?]

I explored this also and settled on... an UMBRELLA POLICY.

It's the easiest way to protect your assets in case of lawsuits. It won't protect you from other risks, but that's the big one.
by unbiased
Sun Sep 06, 2020 7:10 pm
Forum: Personal Investments
Topic: Designing my Portfolio
Replies: 7
Views: 770

Re: Designing my Portfolio

Are you a tinkerer? How much maintenance do you want to do? Are you a once-a-year or once-a-quarter or checking-everyday kind of person? Will your spouse be able to easily manage your portfolio afterwards? Me personally, I like to have separate discreet positions that I can use for "buying the dips"...
by unbiased
Sun Sep 06, 2020 6:38 pm
Forum: Personal Investments
Topic: Portfolio review - FIRE 2020?
Replies: 57
Views: 4529

Re: Portfolio review - FIRE 2020?

[/quote] Thank you. That is what the advisor I mentioned in my original post has done for us AND we spoke to another and they think we are "good" but the details of retiring early are clearly not commonplace for them so I wanted more ideas / thoughts/ opinions. [/quote] Sorry I missed that -- let me...
by unbiased
Sun Sep 06, 2020 6:10 pm
Forum: Personal Investments
Topic: Muni Bonds and Risk (VWIUX)
Replies: 29
Views: 2674

Re: Muni Bonds and Risk (VWIUX)

Vanguard is fairly conservative -- only a little over 6% of its bonds are BBB, which is the rung on the credit ladder I would be most concerned about. For comparison, category average is 16%! What's more they are well overweight AAA and AA -- top tier. Advantage with Vanguard is that their rock bott...
by unbiased
Sun Sep 06, 2020 2:07 pm
Forum: Personal Investments
Topic: Prepay student loans OR megabackdoor Roth? (26 y/o in Biglaw; 190k salary; 180k debt)
Replies: 82
Views: 5155

Re: Prepay student loans OR megabackdoor Roth? (26 y/o in Biglaw; 190k salary; 180k debt)

I was in the EXACT same boat as you at the same age, same job. Same dilemma. Although my debt was slightly less but I was also earning less than you -- still a lot in those days (early 2000s) at big firms. My choice: I chose to invest first, pay down debt later. Now, just a couple decades later I'm ...
by unbiased
Sun Sep 06, 2020 1:49 pm
Forum: Personal Investments
Topic: Portfolio review - FIRE 2020?
Replies: 57
Views: 4529

Re: Portfolio review - FIRE 2020?

In a similar boat of trying to retire early, just a couple years away. I had a friend who is a financial planner do an overview and strongly recommend you do the same, even if it's fee based. I'm not advocating you turn your assets over, just that you get a professional opinion on your plan and answ...
by unbiased
Sat Sep 05, 2020 11:15 am
Forum: Personal Investments
Topic: Anyone Else Investing in SPACs (Special Purpose Acquisition Companies)?
Replies: 17
Views: 2055

Re: Anyone Else Investing in SPACs (Special Purpose Acquisition Companies)?

Helpful link to the FINRA document. I made a small investment in Ackman's Pershing but mostly as a low capital experiment. Really just putting blind faith in management for an investment like this since very little other information becomes known until the target is announced.
by unbiased
Fri Aug 21, 2020 9:04 pm
Forum: Personal Investments
Topic: When do you take profits and what do you do with them?
Replies: 35
Views: 2544

Re: When do you take profits and what do you do with them?

"nothing wrong with taking a profit" a wise investor once said. But you're correct that the second piece (what to do with them) is most important. I was simply too timid from consecutive market crashes in my early investor life (Tech Bubble + great recession) to let my "winners" ride, especially wit...
by unbiased
Sun Aug 16, 2020 5:50 pm
Forum: Investing - Theory, News & General
Topic: VWINX clone [Vanguard Wellesley Income Fund]
Replies: 27
Views: 2209

Re: VWINX clone [Vanguard Wellesley Income Fund]

Just curious why the op does not say why ? Is there a reason you cannot use VWINX ? [/quote] Sorry I didn't want to overwhelm everyone with background, but you're right that could be helpful. I have a taxable account at Vanguard but closed my IRA there years ago and moved it to Schwab where I had a ...