Search found 88 matches

by grobertj
Tue Sep 22, 2020 4:38 pm
Forum: Personal Investments
Topic: Losing Money with Index Funds
Replies: 149
Views: 14062

Re: Losing Money with Index Funds

I hold 3 years spending in Vanguard's Short Term Bond Fund (BSV). If my portfolio is down, I withdraw from BSV. Otherwise, I withdraw from my portfolio. In effect, I use the BSV amount as a Cash Reserve.
by grobertj
Sun Sep 13, 2020 12:53 pm
Forum: Investing - Theory, News & General
Topic: How do you think Vanguard Wellesley Income Fund will do over the next ten years?
Replies: 30
Views: 4238

Re: How do you think Vanguard Wellesley Income Fund will do over the next ten years?

I back tested Wellesley against the Boglehead 4 fund portfolio, and Wellesley delivered virtually the same returns from 2002 to 2019. But, Wellesley was MUCH less volatile. It's Std Dev is less than half of the four funds.
by grobertj
Sat Sep 12, 2020 8:51 am
Forum: Personal Investments
Topic: Best option to protect my medium spending needs
Replies: 6
Views: 592

Best option to protect my medium spending needs

I'm currently invested 50/50 between VTI and BND. I also have a year's spending needs in an Ally Savings Account which I replenish as needed. I'm retired and drawing SS. My house is paid off, and I have no other debt. I'm considering moving 3 years worth of spending from BND to BSV. I'm concerned ab...
by grobertj
Sun Sep 06, 2020 4:24 pm
Forum: Personal Investments
Topic: Bond anxiety
Replies: 53
Views: 5199

Re: Bond anxiety

Can you treat Social Security as a bond? I do...actually I treat it as an annuity which I consider fixed income. So my way of thinking the NPV of SS should be treated as bonds. I think you just contradicted yourself. Fixed income, by the way, is neither fixed nor income, while an annuity is income ...
by grobertj
Sat Sep 05, 2020 6:36 pm
Forum: Personal Investments
Topic: Bond anxiety
Replies: 53
Views: 5199

Re: Bond anxiety

shuresm7b1 wrote: Fri Sep 04, 2020 9:48 am Can you treat Social Security as a bond?
I do...actually I treat it as an annuity which I consider fixed income. So my way of thinking the NPV of SS should be treated as bonds.
by grobertj
Thu Sep 03, 2020 6:36 pm
Forum: Personal Investments
Topic: What is your game plan as market is reaching its previous all time high?
Replies: 174
Views: 19327

Re: What is your game plan as market is reaching its previous all time high?

I learned my lesson when the market dropped before. Back then I cashed out and per my calculations, it cost me at least $100K. This time, I'm sticking with my Investment Portfolio Statement. If my stock allocation gets too out of whack, I might rebalance. But otherwise, I'm staying put.
by grobertj
Mon Aug 31, 2020 4:11 pm
Forum: Investing - Theory, News & General
Topic: Vanguard seems to have web online sign on problem
Replies: 145
Views: 6742

Vanguard Website Problems

Does anyone know what was wrong with Vanguard's website earlier today?
by grobertj
Sat Aug 29, 2020 1:16 pm
Forum: Personal Investments
Topic: Cash allocation in negative interest rate environment
Replies: 17
Views: 2050

Re: Cash allocation in negative interest rate environment

I was on the Ally site today. I am considering putting more funds into my savings account there. I noticed that it says FDIC is "inactive". I was shocked. Is it true? NO! I'm not sure what you saw, but if you scroll down the details of Savings Accounts, you'll see it's definitely FDIC ins...
by grobertj
Fri Aug 28, 2020 6:39 pm
Forum: Personal Investments
Topic: Vanguard Bond ETF choices and rebalancing
Replies: 8
Views: 992

Re: Vanguard Bond ETF choices and rebalancing

Just to give a different opinion, I don't think there's anything wrong with the choice of bond funds you've selected since I have many of those same funds in my own Vanguard accounts. Many people on this forum believe it simplifies things to have only one bond fund, though, such as BND or BIV, whic...
by grobertj
Wed Aug 26, 2020 4:51 pm
Forum: Personal Investments
Topic: Cash allocation in negative interest rate environment
Replies: 17
Views: 2050

Re: Cash allocation in negative interest rate environment

Ally's Savings rate is 0.8% and their checking rate is 0.5% if you maintain over $14,000. Plus, both are FDIC protected.
by grobertj
Wed Aug 26, 2020 4:48 pm
Forum: Personal Investments
Topic: Better Fund? BIV or BSV?
Replies: 1
Views: 224

Better Fund? BIV or BSV?

All my current bond holdings are in the Vanguard Intermediate-Term Bond ETF (BIV). With bond yields so low, should I switch to Vanguard Short-Term Bond ETF (BSV)? Your thoughts are appreciated.
by grobertj
Tue Aug 25, 2020 4:02 pm
Forum: Personal Investments
Topic: Cash allocation after retirement...
Replies: 29
Views: 3145

Re: Cash allocation after retirement...

Retired 9 years and I've been keeping ~4-5% in an Ally savings account...works for us. I do EXACTLY the same. 4% is my annual withdrawal rate so in essence I keep a year of spending in my Cash Reserve. One thing I just realized is if I keep at least $14,000 in my Ally check account, I get 0.5% inte...
by grobertj
Tue Aug 25, 2020 3:54 pm
Forum: Personal Investments
Topic: Which sites to use for financial news and watchlist tracking
Replies: 28
Views: 1874

Re: Which sites to use for financial news and watchlist tracking

jackb1117 wrote: Mon Aug 24, 2020 4:54 pm I use yahoo finance, but I don't spend a lot of time looking or to tinkering (more of the set it and forget it type) so no idea if there are better tools.
I use Yahoo Finance as well. You can set it up online and then use the App for ease of use.
by grobertj
Mon Aug 24, 2020 4:00 pm
Forum: Personal Investments
Topic: Spreadsheet Tool [Draft] to Calculate Portfolio Withdrawal Data
Replies: 6
Views: 428

Re: Spreadsheet Tool [Draft] to Calculate Portfolio Withdrawal Data

You might want to try this Net Present Value Calculator. I think you can do what you want to do.


https://www.calculatorsoup.com/calculat ... ulator.php
by grobertj
Fri Aug 21, 2020 4:21 pm
Forum: Personal Investments
Topic: Intermediate bond index versus Total Bond Index
Replies: 34
Views: 3899

Re: Intermediate bond index versus Total Bond Index

I switched from BND to BIV about a week ago. I backtested both for the last 20 years and found exactly the same as you. I know past performance is no guarantee of future performance, but....past performance is the only thing we KNOW!
by grobertj
Wed Aug 19, 2020 6:22 pm
Forum: Personal Investments
Topic: This is why DIY is the way to go
Replies: 11
Views: 2036

Re: This is why DIY is the way to go

GMT-8 wrote: Wed Aug 19, 2020 6:14 pm Your post deserves a reply.

BRAVO

That's exactly how I felt when I broke free from the man

GMT
Me and you both!!! I explored using Vanguards's PAS, but they didn't offer anything I couldn't get on this board or through my own research.
by grobertj
Sun Aug 16, 2020 6:31 pm
Forum: Personal Investments
Topic: Still using total bond market?
Replies: 169
Views: 22515

Re: Still using total bond market?

Welcome to the forum :) . Earlier this year I sold my Total Bond Market Fund (VBTLX) and put the money into the Intermediate Term Bond Fund (VBILX). For me, this is a long term holding. At this time in my life, I have no use for short term bonds. Our only bond fund is Vanguard Intermediate-term Bon...
by grobertj
Sun Aug 16, 2020 12:14 pm
Forum: Personal Investments
Topic: Still using total bond market?
Replies: 169
Views: 22515

Re: Still using total bond market?

Welcome to the forum :) . Earlier this year I sold my Total Bond Market Fund (VBTLX) and put the money into the Intermediate Term Bond Fund (VBILX). For me, this is a long term holding. At this time in my life, I have no use for short term bonds. Our only bond fund is Vanguard Intermediate-term Bon...
by grobertj
Sat Aug 15, 2020 9:29 am
Forum: Personal Investments
Topic: Adding a Sector ETF to my Stock Portfolio
Replies: 8
Views: 542

Re: Adding a Sector ETF to my Stock Portfolio

If you like/enjoy researching things, you can learn a ton simply by reading up on different ETFs in your chosen sector. I used US News and Zacks at first because I had used them to research funds in my 401(k), but eventually got the hang of reading up on ETFs on Schwab (which has great, free resear...
by grobertj
Fri Aug 14, 2020 6:37 pm
Forum: Personal Investments
Topic: Adding a Sector ETF to my Stock Portfolio
Replies: 8
Views: 542

Adding a Sector ETF to my Stock Portfolio

I currently my entire stock portfolio invest in the Total Stock ETF (VTI). With bonds returning very little, I'm considering investing around 10% of my stock portfolio in Vanguard's Information Technology ETF. It's returned over 20% annually for the last 10 years. With so many colleges and schools t...
by grobertj
Thu Aug 13, 2020 6:32 pm
Forum: Personal Finance (Not Investing)
Topic: Ally Bank savings interest rate dropping from 1% to 0.8%
Replies: 82
Views: 9428

Re: Ally Bank savings interest rate dropping from 1% to 0.8%

With bond yields so low, does it make sense to increase your Cash Reserve and move your bond holdings into a Stock Fund? Just a thought.
by grobertj
Thu Aug 13, 2020 5:01 pm
Forum: Personal Finance (Not Investing)
Topic: Ally Bank savings interest rate dropping from 1% to 0.8%
Replies: 82
Views: 9428

Ally Savings Rate Drop

[This thread has been merged into the existing topic on the same subject- Mod Misenplace]

I just got the "exciting" news that Ally is dropping their savings rate from 1.0% to 0.8%. They dropped to 1.0% just a short timer ago. :annoyed
by grobertj
Wed Aug 12, 2020 2:25 pm
Forum: Personal Investments
Topic: Moving to Cash?
Replies: 158
Views: 11546

Re: Moving to Cash?

I've been in retirement for 7 years. Recently, I've increased my Cash Reserve to 12 months spending. Otherwise, I'm maintaining a 50/50 AA in Vanguard's Total Bond and Total Stock ETFs. I like to keep it simple especially when it comes to rebalancing. I'm currently considering moving to my bond allo...
by grobertj
Tue Aug 11, 2020 7:44 pm
Forum: Personal Investments
Topic: 3 fund portfolio - Bond indexes bad in this environment?
Replies: 30
Views: 2362

Re: 3 fund portfolio - Bond indexes bad in this environment?

I recently rebalanced our 3 fund portfolio from 75/25 to 60/40. We were 70/30 so it was time to rebalance, plus I dropped us down to 60/40 to reduce risk because I learned during the pandemic our risk tolerance was too high. Our bond fund is the Barclays U.S. Aggregate bond index fund. Since rebala...
by grobertj
Mon Aug 10, 2020 12:11 pm
Forum: Personal Investments
Topic: Cash in portfolio
Replies: 9
Views: 862

Re: Cash in portfolio

I would consider it as a cash reserve.
by grobertj
Sun Aug 09, 2020 8:49 am
Forum: Personal Investments
Topic: Bond Alternatives in the time of Zero rates
Replies: 151
Views: 14133

Re: Bond Alternatives in the time of Zero rates

What are your thoughts on using a Corporate Bond fund versus a Treasury Bond Fund. Corporate Bonds should return a higher yield. I know there's slightly more risk, but I doubt it's very high.
by grobertj
Sat Aug 08, 2020 6:14 pm
Forum: Personal Investments
Topic: Bond Alternatives in the time of Zero rates
Replies: 151
Views: 14133

Re: Bond Alternatives in the time of Zero rates

I've had similar concerns for quite a while. Vanguard has a Total Corporate Bond ETF. It's an ETF of ETFs with approximately equal part short, intermediate & long Corporate bonds. Since the Total Bond ETF is primarily focused on Treasuries, it would seem to me this would offer some additional d...
by grobertj
Sat Aug 08, 2020 3:47 pm
Forum: Personal Investments
Topic: Bond Alternatives in the time of Zero rates
Replies: 151
Views: 14133

Re: Bond Alternatives in the time of Zero rates

I've had similar concerns for quite a while. Vanguard has a Total Corporate Bond ETF. It's an ETF of ETFs with approximately equal part short, intermediate & long Corporate bonds. Since the Total Bond ETF is primarily focused on Treasuries, it would seem to me this would offer some additional di...
by grobertj
Fri Aug 07, 2020 8:33 am
Forum: Investing - Theory, News & General
Topic: Vanguard "sunsetting" CFP consultations
Replies: 137
Views: 11733

Re: Vanguard "sunsetting" CFP consultations

I started to enroll in the Personal Advisors Services. The person assigned to me, developed a complete financial plan. After we discussed the plan, I decided not to pursue because I still prefer a hands on approach. Now I'm depending on Bogleheads for advice. Vanguard is still good if you have a web...
by grobertj
Thu Aug 06, 2020 7:38 pm
Forum: Personal Investments
Topic: Is Vanguard still good?
Replies: 42
Views: 3405

Re: Is Vanguard still good?

...Just a few months ago, Admiral investors got a once per year session with a Certified Financial Analyst. I think you meant Flagship investors rather than Admiral investors? Either way, many people are feeling like they're banished to the poop deck. I stand corrected. It is Flagship investors. So...
by grobertj
Thu Aug 06, 2020 7:10 pm
Forum: Personal Investments
Topic: Is Vanguard still good?
Replies: 42
Views: 3405

Re: Is Vanguard still good?

I've been with Vanguard since I retired in 2013. They've been very good for me. My only complaint is they are now trying to sell everyone on the Personal Advisor Service. Just a few months ago, Admiral investors got a once per year session with a Certified Financial Analyst. Now that's not available...
by grobertj
Thu Aug 06, 2020 9:01 am
Forum: Personal Investments
Topic: Alternative 2 Fund Portfolio
Replies: 17
Views: 1545

Re: Alternative 2 Fund Portfolio

VBIAX (Vanguard Balanced Index) is the 2-fund portfolio that rebalances every day (for 7 basis points). This should do exactly what you want as a 60/40 allocation if you can live with this permanent asset allocation. It's really all you need without any more thought (especially if you are not inter...
by grobertj
Wed Aug 05, 2020 6:45 pm
Forum: Personal Investments
Topic: Alternative 2 Fund Portfolio
Replies: 17
Views: 1545

Re: Alternative 2 Fund Portfolio

I've taken your feedback to heart, and I've read the material in the Bogleheads wiki. I've decided to invest in the Total Stock Market ETF (VTI) and the Total Bond Market ETF (BND). I'm following the direction below to determine my AA which turns out to be 40/60 stocks and bonds. John Bogle recommen...
by grobertj
Wed Aug 05, 2020 1:42 pm
Forum: Personal Investments
Topic: Alternative 2 Fund Portfolio
Replies: 17
Views: 1545

Re: Alternative 2 Fund Portfolio

I chose international bonds because when I backtested against a 40/60 AA with VTI and BND, the portfolio with international bonds had a higher yield. But when I look at Vanguard's data, it says BND outperforms BNDX in every time frame. I'm confused. Is it possible the Portfolio Visualizer is incorre...
by grobertj
Tue Aug 04, 2020 9:55 pm
Forum: Personal Investments
Topic: Alternative 2 Fund Portfolio
Replies: 17
Views: 1545

Re: Alternative 2 Fund Portfolio

I've researched what you all have said, and my analysis says you're right. I'll be investing in 3 funds: VTI, BND, & BNDX. My asset allocation will be 40/60 bonds and stocks with about 30% of bonds international. Backtesting this AA give me a higher return than Wellesley where I've been. I've c...
by grobertj
Tue Aug 04, 2020 6:57 pm
Forum: Personal Investments
Topic: Alternative 2 Fund Portfolio
Replies: 17
Views: 1545

Re: Alternative 2 Fund Portfolio

I've researched what you all have said, and my analysis says you're right. I'll be investing in 3 funds: VTI, BND, & BNDX. My asset allocation will be 40/60 bonds and stocks with about 30% of bonds international. Backtesting this AA give me a higher return than Wellesley where I've been. I've co...
by grobertj
Tue Aug 04, 2020 8:44 am
Forum: Personal Investments
Topic: Alternative 2 Fund Portfolio
Replies: 17
Views: 1545

Alternative 2 Fund Portfolio

I'm contemplating moving my portfolio to 2 funds... Vanguard US Growth (VWUAX) and Vanguard intermediate-Tern Investment-Grade (VFIDX). My AA would be 40/60 stock and bonds. From my analysis, VFIDX appears to have the highest returns of any of the bond funds. I'm concerned about bond returns over th...
by grobertj
Fri Jul 31, 2020 7:56 pm
Forum: Personal Investments
Topic: What to do with cash
Replies: 28
Views: 3617

Re: What to do with cash

Hi All, I have cash that I'd like to put somewhere to accrue interest. I'm not sure I want to put it in my Vanguard brokerage account right now, as I think that the market will drop around election time. I am looking to move the money over to my brokerage account (which is all index funds) at some ...
by grobertj
Fri Jul 31, 2020 11:03 am
Forum: Personal Investments
Topic: Still using total bond market?
Replies: 169
Views: 22515

Re: Still using total bond market?

For all the reasons stated earlier in this post, I continue to believe I am best served by remaining in 100% Wellesley Admiral Share (VWIAX). It's allocation is roughly 40% stocks and 60% bonds. But it's actively managed by people who understand bonds and stocks a heckuva lot better than me. I've ba...
by grobertj
Thu Jul 30, 2020 11:28 am
Forum: Personal Investments
Topic: Poor service at Vanguard making me re-think my decision
Replies: 98
Views: 8963

Re: Poor service at Vanguard making me re-think my decision

Vanguard will not up sell like other brokerages and this is a significant issue when the surviving spouse is not financially savvy. For me, this is a very important reason to stay with Vanguard. (There are other reasons as well.) Unfortunately, you have to go on trust. There is no guarantee that th...
by grobertj
Tue Jul 28, 2020 7:53 pm
Forum: Personal Investments
Topic: Vanguard Short-Term Investment-Grade Fund
Replies: 9
Views: 1265

Vanguard Short-Term Investment-Grade Fund

Does anyone have any experience of input on using the Vanguard Short-Term Investment Grade Fund (VFSUX) as their primary bond holding? With bond returns being so low, this fund looks to be the best option in the short term. At the very least, it looks like an attractive option for a Cash Reserve. Th...
by grobertj
Tue Jul 28, 2020 3:40 pm
Forum: Personal Investments
Topic: Should I start social security at 62 to invest it?
Replies: 74
Views: 8374

Re: Should I start social security at 62 to invest it?

Benefits have been cut several times. [...] 3. Change in the inflation index As far as I know the only time the COLA provision was changed (after initially being added in the 1972 Amendments) was the 1986 change which removed the 3% threshold for COLAs. Am I missing something? I think you're right....
by grobertj
Tue Jul 28, 2020 1:07 pm
Forum: Personal Investments
Topic: Should I start social security at 62 to invest it?
Replies: 74
Views: 8374

Re: Should I start social security at 62 to invest it?

I just read that SS benefits will be cut to 75% starting in 2035 unless something changes. I'll have to model that and see if that affects the breakeven age. In my opinion the chance of reducing SS benefits is 0%. People over 62, vote in droves. NO chance...NO way!!! :!: Avoiding speculating on the...
by grobertj
Mon Jul 27, 2020 6:27 pm
Forum: Personal Investments
Topic: Should I start social security at 62 to invest it?
Replies: 74
Views: 8374

Re: Should I start social security at 62 to invest it?

Tracker968 wrote: Mon Jul 27, 2020 4:59 pm I just read that SS benefits will be cut to 75% starting in 2035 unless something changes. I'll have to model that and see if that affects the breakeven age.
In my opinion the chance of reducing SS benefits is 0%. People over 62, vote in droves. NO chance...NO way!!! :!:
by grobertj
Mon Jul 27, 2020 6:19 pm
Forum: Personal Investments
Topic: Are Higher Stock Allocations the Only Option for Retirees?
Replies: 94
Views: 7063

Re: Are Higher Stock Allocations the Only Option for Retirees?

Outer Marker wrote: Mon Jul 27, 2020 9:24 am
Always passive wrote: Mon Jul 27, 2020 12:36 am Are there any bright ideas that I have not considered?
You might consider a Single Premium Immediate Annuity for a portion of your fixed income.
Excuse my ignorance, but what is a Single Premium Immediate Annuity. I thought all Bogleheads were anathema to annuities.
by grobertj
Sun Jul 26, 2020 6:10 pm
Forum: Personal Investments
Topic: Should I start social security at 62 to invest it?
Replies: 74
Views: 8374

Re: Should I start social security at 62 to invest it?

I am strongly considering whether to start social security at 62 and invest the money in stocks. My wife and I are both 61. I have been retired for a year and she is retiring in 2 weeks. We do not need the money to live on. To explain my financial philosophy my whole career I saved a high salary % ...
by grobertj
Sat Jul 25, 2020 2:33 pm
Forum: Personal Investments
Topic: Cash substitutes
Replies: 14
Views: 1415

Re: Cash substitutes

What is the actual true purpose of your cash or cash substitutes? If it is just for peace of mind would putting a bunch of fake $100 bills under your mattress work for that? I'm serious: What actually is the purpose? Bonds pay dividends. :moneybag I've moved all my Vanguard portfolio into the Welle...
by grobertj
Sat Jul 25, 2020 9:54 am
Forum: Personal Investments
Topic: Cash substitutes
Replies: 14
Views: 1415

Re: Cash substitutes

Anyone have any good ideas for cash substitutes? My money market and vanguard short-term muni returns are nothing now, so looking for creative ideas. I've had my cash reserve in Ally savings account for many years. The interest rate fluctuates. It's the lowest now it's ever been. It was 1.2% just a...
by grobertj
Fri Jul 17, 2020 6:17 pm
Forum: Personal Investments
Topic: Vanguard Personal Advisor Services
Replies: 18
Views: 1567

Re: Vanguard Personal Advisor Services

I have been very disappointed when I have had them run a plan for me. First, they will only do what you have in Vanguard so if there are other assets they would not include and make any recommendations. Second, they always pushed me to international and I just am not comfortable with that. Finally,...