Search found 5682 matches

by Dandy
Sun Apr 21, 2019 12:11 pm
Forum: Investing - Theory, News & General
Topic: The Fundamental Axioms / Laws / Principles of Investing
Replies: 27
Views: 1241

Re: The Fundamental Axioms / Laws / Principles of Investing

Most mentioned from Bogle are timeless. Stay the course and simplicity are often a very minor issue with me. Stay the course - makes sense almost all of the time. But, Bogle didn't follow that principle all the time. He made drastic reductions to his equity allocation around 2000 because he felt the...
by Dandy
Sun Apr 21, 2019 10:52 am
Forum: Investing - Theory, News & General
Topic: Re-Examining an assumption: 45% bonds in retirement?
Replies: 40
Views: 3741

Re: Re-Examining an assumption: 45% bonds in retirement?

Fixed income is mostly for safety and stability not for high income or growth. The risk/reward is very much locked into your equity allocation. I feel most people, especially those not near or in retirement, underestimate how the risks change in retirement -- for most people. As you near retirement ...
by Dandy
Sun Apr 21, 2019 10:17 am
Forum: Personal Investments
Topic: portfolio review
Replies: 6
Views: 547

Re: portfolio review

I'm currently at 25x expected retirement expenses. I have no debt. If I leave my job at age 55 will be getting a small pension, approximately 25k per year, if I take it at age 65. I would love to retire at 55, but not sure if I can afford to do that, as I will need to get health insurance until I q...
by Dandy
Sun Apr 21, 2019 8:16 am
Forum: Personal Investments
Topic: Rebalancing - Asset Allocation Strategies?
Replies: 9
Views: 948

Re: Rebalancing - Asset Allocation Strategies?

I would move rather quickly to reduce the equity risk to 50%. You could put it in Prime Money Market until earning 2.45% currently until you decide on the composition of the fixed income choices. A large retirement risk is inflation so I allocate a decent amount of my TIRA fixed income to the Inflat...
by Dandy
Sun Apr 21, 2019 8:01 am
Forum: Personal Investments
Topic: portfolio review
Replies: 6
Views: 547

Re: portfolio review

In order to get the best suggestions you could post more information about your financial situation. e.g. the size of your portfolio *, are you likely to get a pension, debt, etc. You have a large emergency fund in Savings going to 6 months to a year is "normal" but if you have an old car, leaky roo...
by Dandy
Sat Apr 20, 2019 11:26 am
Forum: Personal Investments
Topic: Short Term Cash
Replies: 23
Views: 2727

Re: Short Term Cash

Any advice where I could put it where return might be slightly higher, still maintaining immediate liquidity. 1. If you want immediate liquidity say f or doing trades then you need to leave it in a money market with that brokerage. 2. If you mean you need access to actual cash at an ATM local bank ...
by Dandy
Sat Apr 20, 2019 8:59 am
Forum: Personal Investments
Topic: Vanguard Personal Advisor Services
Replies: 28
Views: 3335

Re: Vanguard Personal Advisor Services

That feature is intended to not only adjust portfolios to adapt to changing client circumstances, but to support better informed client decision-making with respect to investment-related decisions which have implications for taxes, returns, risk, and impact on portfolio growth or longevity. excelle...
by Dandy
Sat Apr 20, 2019 8:57 am
Forum: Personal Investments
Topic: Net Worth where it should be?
Replies: 49
Views: 6379

Re: Net Worth where it should be?

I can’t wait for the tail wind to start kicking in!
That's when you really feel my money is working for me - enjoy the upcoming breeze :D
by Dandy
Sat Apr 20, 2019 7:07 am
Forum: Personal Finance (Not Investing)
Topic: How to value additional savings
Replies: 5
Views: 698

Re: How to value additional savings

You can't use math to solve happiness issues. Life is short, between you and your wife you should have enough assets/earnings to be very comfortable now and in retirement with your old job/similar earnings. It isn't all about the destination you have to try to enjoy the journey too.
by Dandy
Sat Apr 20, 2019 6:53 am
Forum: Personal Investments
Topic: Vanguard Personal Advisor Services
Replies: 28
Views: 3335

Re: Vanguard Personal Advisor Services

There is often great fear in self managing your investments especially when they start to be larger than you have ever managed on your own. My understanding of PAS is that VG is pretty strict on what funds they will include in the program. I believe the basic 4 or so funds they usually include in th...
by Dandy
Sat Apr 20, 2019 6:29 am
Forum: Personal Investments
Topic: Net Worth where it should be?
Replies: 49
Views: 6379

Re: Net Worth where it should be?

Your savings rate with a least a moderate allocation should put you in very good shape as you approach retirement. the magic of compounding with the added benefit of high savings takes time to bear fruit. You will start to feel the tail wind when the growth of your portfolio exceeds your yearly cont...
by Dandy
Sat Apr 20, 2019 6:18 am
Forum: Personal Investments
Topic: Starting daughter's savings plan
Replies: 12
Views: 929

Re: Starting daughter's savings plan

It is great to graduate soon and actually have money to invest. I have 2 daughters who graduated many years ago. They, like most, knew very little about investing. When they got their first job I steered them to a balanced fund rather than an equity only fund. I encouraged them to open a Roth IRA an...
by Dandy
Fri Apr 19, 2019 4:43 pm
Forum: Personal Investments
Topic: Pensions and early retirement issues
Replies: 4
Views: 721

Re: Pensions and early retirement issues

Wow what a deal. I think you will know better as you get closer to 55. e.g. what your retirement expenses are likely to be?, did your portfolio reach or exceed 25X expenses? Your health and that of your Spouse? etc. I was in similar shape in 2008 when the market tanked and I lost my job. I went from...
by Dandy
Fri Apr 19, 2019 12:52 pm
Forum: Personal Investments
Topic: First time posting - Portfolio Feedback
Replies: 9
Views: 827

Re: First time posting - Portfolio Feedback

I was and am more conservative when it comes to overall allocations. One thing to watch is that percentages can lull you to sleep at bit when considering risk as your portfolio dollars grow. It is much easier to take the risk of an 80% equity allocation when your 25 and your assets are $20,000. You ...
by Dandy
Fri Apr 19, 2019 8:43 am
Forum: Personal Finance (Not Investing)
Topic: Whole Life policy advice
Replies: 12
Views: 1002

Re: Whole Life policy advice

I usually say look at the dividends to see if keeping it makes sense e.g. can the yearly dividends pay most of all of the premiums. But these are relatively small . But buy the term policy before you cash these in. You want to make sure you can get coverage you need before you cancel the whole life ...
by Dandy
Fri Apr 19, 2019 8:39 am
Forum: Investing - Theory, News & General
Topic: How and when did you do it - to get to 1 Million
Replies: 82
Views: 16329

Re: How and when did you do it - to get to 1 Million

I believe I got there in my late 50s. 1. Lived below our means - e.g. drove used cars, changed my oil, even rotated my tires. Painted my house twice before having it sided. Always had a nice vacation with the kids though. 2. Saved for retirement with my first full time job at 22? Put 3% in and got a...
by Dandy
Fri Apr 19, 2019 8:22 am
Forum: Personal Investments
Topic: Is the disaster scenario for stocks a reason not to invest or pull out of the market?
Replies: 94
Views: 6856

Re: Is the disaster scenario for stocks a reason not to invest or pull out of the market?

Investing is a means to an end. Equity investing is geared to taking more risk to get a higher reward to reach that goal. So, the allocation to equities should have something to do with the need to reach your goal, your age, and your potential drawdown percentage. In or near retirement and have reac...
by Dandy
Thu Apr 18, 2019 2:45 pm
Forum: Personal Finance (Not Investing)
Topic: When did you start spending more and saving less?
Replies: 76
Views: 4561

Re: When did you start spending more and saving less?

I retired in 2008. Once the economy and investments rebounded I started spending more. I want to gradually increase our standard of living. Eating out more, an extra vacation, theater tickets, some home improvements, etc. Nothing wild but given our financial situation and relatively conservative inv...
by Dandy
Wed Apr 17, 2019 7:43 pm
Forum: Investing - Theory, News & General
Topic: Does 100% stocks make sense for very high net worth individuals
Replies: 126
Views: 12838

Re: Does 100% stocks make sense for very high net worth individuals

Almost no one recommends 100% fixed income or 100% equities. Not that it is all that meaningful to this discussion but Buffet's allocation for his wife was "only" 90/10 and he is pretty wealthy and a person who is bullish on equities. But maybe his wife is not as big a risk taker. :happy
by Dandy
Wed Apr 17, 2019 7:34 pm
Forum: Personal Investments
Topic: Retirement Advice - Annuity or Not? RMD?
Replies: 27
Views: 1380

Re: Retirement Advice - Annuity or Not? RMD?

So if you put in $100,000, but only get $50,000 in payments... but die, the heirs would get $50,000. That's how I read it. That might be a good balance. Ah but the original thought was I will put say $100k in and get $500 a month for life. Now I get this cash back annuity so my wife/heirs will get ...
by Dandy
Wed Apr 17, 2019 7:07 pm
Forum: Personal Investments
Topic: confused opening ira and withdrawal at retirement
Replies: 14
Views: 812

Re: confused opening ira and withdrawal at retirement

1st stocks and bonds inside TIRA I get. Pulling from both I get. What confuses me is people on here holding 2-5 yrs of expenses in bonds or MM funds. I would like to do that and let stocks grow. So are the 2-5 yrs held in the bond or MMF inside TIRA and then reallocated when empty? Is Vanguard MMF ...
by Dandy
Wed Apr 17, 2019 6:52 pm
Forum: Personal Investments
Topic: Retirement Advice - Annuity or Not? RMD?
Replies: 27
Views: 1380

Re: Retirement Advice - Annuity or Not? RMD?

I guess my point is... maybe the damage has already been done (ie high fees up front), and I might as well utilize the annuity if the ridiculous fees are out of the way. Hard to tell. Insurance companies put on lots of bells and whistles to entice people into buying and holding their annuity. Some ...
by Dandy
Wed Apr 17, 2019 12:22 pm
Forum: Personal Investments
Topic: Re-balancing "organically"
Replies: 12
Views: 1266

Re: Re-balancing "organically"

The big risk/reward is your overall equity allocation. Keep that close to target and you should do fine if you have a relatively simple portfolio. If you have a bit more in small cap than large cap it isn't the end of the world. Remember your allocation is based on a guess what your risk tolerance i...
by Dandy
Wed Apr 17, 2019 12:10 pm
Forum: Personal Investments
Topic: Why buy a CD with a brokerage firm?
Replies: 17
Views: 1179

Re: Why buy a CD with a brokerage firm?

Pretty simple if you hold to maturity. If not you have to try to sell and can get a gain or loss. Interest goes to your clearing money market account and so does the CD amount at maturity. No need to move money from bank to bank or back to brokerage account. No worry about it rolling over to a new C...
by Dandy
Wed Apr 17, 2019 9:49 am
Forum: Investing - Theory, News & General
Topic: Wade Pfau & Reverse Mortgages
Replies: 6
Views: 556

Re: Wade Pfau & Reverse Mortgages

I would read Wade's book - he seems to have great analyses of these type of topics. I am uneasy about the product for most people - think there is a lot of room for over selling this product and making lots of money for the sellers. I have no specifics just get that feeling when a complex product is...
by Dandy
Wed Apr 17, 2019 8:31 am
Forum: Personal Investments
Topic: Retirement Advice - Annuity or Not? RMD?
Replies: 27
Views: 1380

Re: Retirement Advice - Annuity or Not? RMD?

Please respond if you believe that an annuity is better than a three fund portfolio. I only see it as a better option, if you are medicaid planning. As usual the answer is "it depends". the 3 fund portfolio is a good investment idea. Most annuities that are sold are bad. But some annuities, like im...
by Dandy
Wed Apr 17, 2019 7:56 am
Forum: Personal Investments
Topic: confused opening ira and withdrawal at retirement
Replies: 14
Views: 812

Re: confused opening ira and withdrawal at retirement

My TIRA is allocated about 21% equities and 79% fixed income. My Required Minimum Distribution (RMD) takes the withdrawal proportionately from each holding (except my CDs). I set this approach up with Vanguard 2 years ago and it will happen each year at the same time unless I change it. I have the m...
by Dandy
Wed Apr 17, 2019 7:35 am
Forum: Personal Investments
Topic: Need advice on portfolio (6 year update!)
Replies: 8
Views: 1016

Re: Need advice on portfolio (6 year update!)

At 32 you seem to be in pretty good shape financially. Steady contributions along with employer match invested with a moderately aggressive allocation should let you end up in a very good place. The "magic" of compounding takes time -- and you have time. Your duplex investment also is working out we...
by Dandy
Mon Apr 15, 2019 5:40 pm
Forum: Investing - Theory, News & General
Topic: Does 100% stocks make sense for very high net worth individuals
Replies: 126
Views: 12838

Re: Does 100% stocks make sense for very high net worth individuals

I believe studies have shown that 100% equities isn't the best allocation for maximum long term growth of your portfolio. ...using some fixed income for buying equities when they are depressed. I doubt a market timer can beat the S&P 500 over a ten year period. What market timer - I'm talking about...
by Dandy
Mon Apr 15, 2019 1:53 pm
Forum: Investing - Theory, News & General
Topic: Does 100% stocks make sense for very high net worth individuals
Replies: 126
Views: 12838

Re: Does 100% stocks make sense for very high net worth individuals

I believe studies have shown that 100% equities isn't the best allocation for maximum long term growth of your portfolio. I believe it is something like 80/20. I think that is because there are stretches of time when bonds out perform equities and maybe because it allows for using some fixed income ...
by Dandy
Mon Apr 15, 2019 1:38 pm
Forum: Investing - Theory, News & General
Topic: Home equity as % of AA
Replies: 41
Views: 2868

Re: Home equity as % of AA

Maybe it is me but being aware of all your assets and liabilities makes sense. Making your house real estate equity part of your investment allocation seems a bit problematic. You can list it if it makes you aware but you really can't do much with it since it is non liquid. So it is nice to see say ...
by Dandy
Mon Apr 15, 2019 10:16 am
Forum: Investing - Theory, News & General
Topic: Does 100% stocks make sense for very high net worth individuals
Replies: 126
Views: 12838

Re: Does 100% stocks make sense for very high net worth individuals

If you have very high net worth how you invest should relate to what are your goals. 1. Asset preservation to insure a luxury retirement 2. Create more wealth as a goal in itself - enjoy the challenge. 3. Create more wealth for heirs or a charity or "cause". 4. Create/buy a business/investment prope...
by Dandy
Mon Apr 15, 2019 10:05 am
Forum: Investing - Theory, News & General
Topic: Home equity as % of AA
Replies: 41
Views: 2868

Re: Home equity as % of AA

The Title of the post is Home equity as a % of AA . Normally, we discuss your AA as stock equities, bonds and sometimes cash/cash-like assets. Home equity is an asset but isn't a stock equity, bond or cash/cash-like asset. It is an asset-- a real estate asset. So it seems ok to say your assets are X...
by Dandy
Mon Apr 15, 2019 6:20 am
Forum: Investing - Theory, News & General
Topic: Home equity as % of AA
Replies: 41
Views: 2868

Re: Home equity as % of AA

A house with equity is a not a bond it is an non liquid asset. Nice to have an allows you to take more risk with your investments. If you use all your fixed income to pay off the mortgage you will have 100% equities as your investment allocation and a large non liquid asset.
by Dandy
Mon Apr 15, 2019 6:04 am
Forum: Personal Investments
Topic: Increasing Risk in Retirement
Replies: 26
Views: 2126

Re: Increasing Risk in Retirement

If you generally follow the suggested asset placement of mostly fixed income in your TIRA and mostly equities in your taxable account then when RMDs occur you will be facing a rising equity allocation. You will be depleting mostly fixed income to fund RMDs and your equity heavy taxable account will ...
by Dandy
Sun Apr 14, 2019 12:32 pm
Forum: Personal Investments
Topic: If you have plenty of money, why not 100% stocks in retirement?
Replies: 107
Views: 6986

Re: If you have plenty of money, why not 100% stocks in retirement?

In retirement you are usually out of human capital rather quickly so earning money to pay for things is not usually an option for long. You usually have to withdraw money to supplement any pension, annuity or Social Security. What is the worst down turn for US equities? 90% in the great depression??...
by Dandy
Sun Apr 14, 2019 11:59 am
Forum: Investing - Theory, News & General
Topic: Post your Investment Policy Statement IPS here
Replies: 62
Views: 64486

Re: Post your Investment Policy Statement IPS here

I don't have a specific written IPS but have the following to guide my actions and have shared it with my heirs: 1. Put aside enough "safe" assets (for me FDIC products/money markets and short term bond funds) to fund our draw down needs until age 90. Target roughly 50/50 between these 2 groups but ...
by Dandy
Sun Apr 14, 2019 11:13 am
Forum: Personal Investments
Topic: Zero Fees: Fidelity Lower than Vanguard
Replies: 10
Views: 871

Re: Zero Fees: Fidelity Lower than Vanguard

I guess inertia plays a big role when you have been with Vanguard for decades and have done well. But, I also like the low cost DNA the firm has. Fidelity and others are coming to the table with lower costs because they are being forced to not because it is in their DNA. Nothing wrong with trying to...
by Dandy
Sun Apr 14, 2019 11:06 am
Forum: Personal Investments
Topic: If you have plenty of money, why not 100% stocks in retirement?
Replies: 107
Views: 6986

Re: If you have plenty of money, why not 100% stocks in retirement?

Depends on your investment goal(s) are. For me in the accumulation phase it was getting to my "number" so I had moderate allocations to equities. In retirement with "enough" my goal is to support our current lifestyle, not run out of money and have assets left over for unexpected expenses and/or inh...
by Dandy
Thu Apr 11, 2019 2:18 pm
Forum: Personal Finance (Not Investing)
Topic: Replacing Main car to get better safety features
Replies: 51
Views: 2072

Re: Replacing Main car to get better safety features

I'm a big fan of safety features -- have yet to get a vehicle with the more up to date one though. :oops: If you can afford it I think you should opt for a new car with the latest safety features. At worst you might avoid some fender benders at best avoid a major accident. Even with a minor accident...
by Dandy
Thu Apr 11, 2019 5:41 am
Forum: Personal Finance (Not Investing)
Topic: Vanguard vs Fidelity Websites - UI/UX
Replies: 13
Views: 1062

Re: Vanguard vs Fidelity Websites - UI/UX

Haven't been on Fidelity web site frequently but don't understand what the major issues are with Vanguard's. I guess I'm used to it and am not very active in making trades. Very active investors or those who like to do detailed analyses might have more of an issue. It was fairly easy to by a new iss...
by Dandy
Wed Apr 10, 2019 1:21 pm
Forum: Personal Investments
Topic: Treating Home as Bonds?
Replies: 15
Views: 675

Re: Treating Home as Bonds?

Why there an effort to fit other assets or liabilities into bonds or negative bonds. A mortgage is debt. It probably means that you should have a higher allocation to fixed income than if you didn't have a mortgage. So, look at your investment allocation and decide whether you should have more fixed...
by Dandy
Wed Apr 10, 2019 11:20 am
Forum: Personal Investments
Topic: Treating Home as Bonds?
Replies: 15
Views: 675

Re: Treating Home as Bonds?

A house is a non liquid asset that may appreciate but also has many ongoing expenses(taxes, landscaping, etc) and lumpy (new roof, etc.) so it costs money to own and doesn't pay income. What is the advantage of treating it as a bond? Allows you to take more risk? If you want to take more risk - incr...
by Dandy
Tue Apr 09, 2019 6:46 am
Forum: Investing - Theory, News & General
Topic: When cash is riskier than bonds
Replies: 58
Views: 6608

Re: When cash is riskier than bonds

There are a variety of fixed income products each with pros and cons. For those with a large fixed income allocation it may not make sense to limit their fixed income to one category/product. I often find that there is a tendency to feel there little need for fixed income diversity. Oh just put it a...
by Dandy
Sun Apr 07, 2019 7:59 am
Forum: Personal Investments
Topic: Vanguard Checkwriting Account
Replies: 20
Views: 1793

Re: Vanguard Checkwriting Account

Maybe it is just me but Prime can have certain restrictions on withdrawals etc. in troubled times. That might have some applicability not necessarily in honoring checks already written but suspending check writing for a period. Anyway you might consider the Fed Money Market Fund or the Treasury Mone...
by Dandy
Sun Apr 07, 2019 7:38 am
Forum: Personal Investments
Topic: Hit your number, retire and boom a correction?
Replies: 67
Views: 7893

Re: Hit your number, retire and boom a correction?

I set "my number" by taking desired retirement income, less SS, then took that result and multiplied by 25. I think you mean retirement EXPENSES less SS X 25. A lot depends on how well you predict your retirement expenses, how much of those expenses you can cut back on and how aggressive your retir...
by Dandy
Fri Apr 05, 2019 2:46 pm
Forum: Personal Investments
Topic: allocation change with "winning the game"
Replies: 39
Views: 3587

Re: allocation change with "winning the game"

Which brings up the question; what is a moderate allocation? 25%? 35% We are struggling with this now. As we hit retirement this year, we don't need more than 3% withdrawals, but protecting our nest egg is the goal (and sleeping well during the next market downturn.) Due to a windfall placed into T...
by Dandy
Fri Apr 05, 2019 12:56 pm
Forum: Personal Investments
Topic: Retirement Asset Allocation Question
Replies: 18
Views: 1337

Re: Retirement Asset Allocation Question

It's not a financial question at this point. Basically true but you still need to make an allocation decision. Do you just let it ride as is? Why not figure out what your desired retirement expenses should be and put those assets in very safe products? I chose age 90 other might choose 85. For some...
by Dandy
Fri Apr 05, 2019 8:37 am
Forum: Personal Investments
Topic: Retirement Asset Allocation Question
Replies: 18
Views: 1337

Re: Retirement Asset Allocation Question

Dandy said:" My "risk" portfolio of intermediate bonds and equities ended up with an allocation of 67/33 ". It isn't that intermediate bond funds are especially risky. I chose to be very conservative in my "safe" portfolio. I constructed my "safe" portfolio of basically FDIC products, money markets...
by Dandy
Fri Apr 05, 2019 7:27 am
Forum: Personal Investments
Topic: allocation change with "winning the game"
Replies: 39
Views: 3587

Re: allocation change with "winning the game"

My feelings are that as you approach your "number" you should be more conservative especially as you near retirement age. Even a moderate allocation to equities should allow a portfolio to grow and offset moderate inflation. To me the goal becomes how do I preserve the "win" vs how do I run up the s...