Search found 5963 matches

by Dandy
Sun Nov 17, 2019 8:36 am
Forum: Personal Investments
Topic: Factoring heirs into overall asset allocation
Replies: 10
Views: 691

Re: Factoring heirs into overall asset allocation

We are fortunate to be in a "we have enough" assets situation. I am a relatively conservative investor with an overall allocation of about 43/57. Our pension and SS income comes close to our normal expenses so my RMD is mostly not needed by us. Rather than increase our allocation we decided to gift ...
by Dandy
Sat Nov 16, 2019 8:06 am
Forum: Personal Investments
Topic: Why am I taking so much risk?
Replies: 28
Views: 2903

Re: Why am I taking so much risk?

Risk has paid off very well during the longest bull market. That tends to dull the risk feeling for most. But as we all know steep declines happen -- as well as recoveries. It gets real important as human capital declines. You expect a modest nest egg at retirement so I guess you don't feel you will...
by Dandy
Fri Nov 15, 2019 10:59 am
Forum: Investing - Theory, News & General
Topic: Total Bond Market Index Fund
Replies: 25
Views: 2198

Re: Total Bond Market Index Fund

I roughly follow Dr. Wm Bernstein's idea of having 20 or so years worth of drawdown dollars in "safe" fixed income. I set the goal of "safe assets" to fund to age 90 (I'm 71). For me that is short term bond funds, FDIC products, and money markets. Beyond that I like lots of diversity in my fixed inc...
by Dandy
Fri Nov 15, 2019 10:37 am
Forum: Personal Investments
Topic: Which SS strategy makes more sense?
Replies: 24
Views: 1809

Re: Which SS strategy makes more sense?

You can't forget about your wife having a larger inflation protected income from the higher SS by you waiting until age 70. Also, the lower income while you wait could create opportunity to lower your future tax rate by doing some Roth conversions or withdrawing from your TIRA to help fund the wait ...
by Dandy
Thu Nov 14, 2019 12:22 pm
Forum: Personal Finance (Not Investing)
Topic: The difficulty of discarding frugality?
Replies: 108
Views: 8999

Re: The difficulty of discarding frugality?

Old habits that have worked well for decades are hard to change. I am in a similar position in that our income almost equals our normal expenses. The bull market has made our conservatively invested portfolio grow nicely. I started to gradually increase our standard of living e.g. out for dinner mor...
by Dandy
Sun Nov 10, 2019 9:44 am
Forum: Personal Investments
Topic: Spend It All vs. Leave $$ for the Kids
Replies: 192
Views: 14785

Re: Spend It All vs. Leave $$ for the Kids

I think that "children" by the time they are in their 30"s have pretty much shown how they can handle life and money. You can probably tell if they received a large inheritance whether that would make their life better or tend to destroy it. Money can corrupt but it doesn't have to. The work you do ...
by Dandy
Sat Nov 09, 2019 2:39 pm
Forum: Personal Investments
Topic: Spend It All vs. Leave $$ for the Kids
Replies: 192
Views: 14785

Re: Spend It All vs. Leave $$ for the Kids

I am blessed with great hardworking children and their husbands. I feel for many it is harder now to become financially secure. Pensions are becoming rare, health insurance is expensive and more employer don't seem to provide it, housing is expensive even with low mortgage rates and education expens...
by Dandy
Sat Nov 09, 2019 8:22 am
Forum: Personal Investments
Topic: Need Help With Bond Funds and Comfort Level. Or...
Replies: 9
Views: 1016

Re: Need Help With Bond Funds and Comfort Level. Or...

I think the term fixed income is better than bonds. I opt for a variety of fixed income products. I cover some of my fixed income needs by investing in Balanced Index and Wellesley Income funds in my TIRA. I have short term bond funds, Intermediate Treasury, Inflation Protected and Intermediate and ...
by Dandy
Sat Nov 09, 2019 7:55 am
Forum: Personal Investments
Topic: Is there any vanguard fund similar to Target Retirement NOT so intl heavy??
Replies: 15
Views: 1406

Re: Is there any vanguard fund similar to Target Retirement NOT so intl heavy??

I use Balanced Index in my TIRA but since it is 60% equities it is a bit high for my taste so I also use Wellesley Income to lower the overall equity exposure. I like the combination and the fact that all my TIRA equity exposure is rebalanced.
by Dandy
Fri Nov 08, 2019 9:26 am
Forum: Personal Finance (Not Investing)
Topic: How Have You Planned for Sequence of Return Risk (SOR)?
Replies: 178
Views: 11763

Re: How Have You Planned for Sequence of Return Risk (SOR)?

Most HELOCs have yearly fees ($50 in our case). I understand that most do charge fees either to set up or yearly or both. I have opened a BofA HELOC about 2 years ago and didn't have any initial or ongoing fees. Neither had they charged me for the prior HELOC which had expired. I have been with tha...
by Dandy
Fri Nov 08, 2019 7:12 am
Forum: Personal Finance (Not Investing)
Topic: How Have You Planned for Sequence of Return Risk (SOR)?
Replies: 178
Views: 11763

Re: How Have You Planned for Sequence of Return Risk (SOR)?

My AA is 45/55 though and not sure about a HELOC. Encouraging to know others are making this set-up work Soon after retirement in 2008 my 55/45 allocation went lower due to the great recession. At one point I rolled over my 401k to a Vanguard Money Market Fund and only gradually moved back into "in...
by Dandy
Thu Nov 07, 2019 2:31 pm
Forum: Personal Finance (Not Investing)
Topic: Best month to take RMDs?
Replies: 86
Views: 4558

Re: Best month to take RMDs?

I don't particulary need my RMD so I wait until December to take it.
Just make sure to automate the RMD deduction so illness or forgetfulness, etc. won't cause a problem. You can always decide to take it manually if you need to for some reason.
by Dandy
Thu Nov 07, 2019 7:16 am
Forum: Personal Finance (Not Investing)
Topic: Best month to take RMDs?
Replies: 86
Views: 4558

Re: Best month to take RMDs?

My advice is automate the process and complete it early December at the latest. You don't want to forget it, have some glitch that carries over the year end or get sick or otherwise can't get to pull the switch. If you don't particularly need the RMD then I would suggest take it quarterly - Jan,Apr,...
by Dandy
Tue Nov 05, 2019 7:14 am
Forum: Personal Investments
Topic: nearing goal - pull back allocation?
Replies: 6
Views: 1021

Re: nearing goal - pull back allocation?

A reduction in equity allocation doesn't mean your portfolio won't grow. If your goal is well thought out and you are reasonably close to retirement I see a moderate reduction in equity allocation prudent. My feeling is as you get close or reach/exceed your goal asset preservation starts being more ...
by Dandy
Tue Nov 05, 2019 7:06 am
Forum: Personal Investments
Topic: How much money is really needed in retirement?
Replies: 74
Views: 9172

Re: How much money is really needed in retirement?

You really can't tell what your money needs will be in retirement until you get close to it. A key is living below your means and saving/investing what you can while maintaining a decent lifestyle. All the rules of thumb are just crude attempts at projecting the assets or expenses that you will deal...
by Dandy
Mon Nov 04, 2019 8:37 am
Forum: Personal Investments
Topic: [Why is VMMXX (Prime Money Market) ER so high?]
Replies: 27
Views: 3279

Re: [Why is VMMXX (Prime Money Market) ER so high?]

Many money market funds have check writing which leads to transaction volume and often some problems. Many MM are where people send dividends from their investments, use MM to rebalance and as the initial landing place for large rollovers from other institutions. Investors often DCA from a MM fund t...
by Dandy
Sun Nov 03, 2019 2:09 pm
Forum: Investing - Theory, News & General
Topic: Wait for Social Security - breakeven returns
Replies: 107
Views: 9814

Re: Wait for Social Security - breakeven returns

One point I don't think is brought up enough is you're not going to "care" when you're dead that you didn't "break even" on this gamble. But you're definitely going to care if you withdrew earlier and are locked into that lower payment stream forever and you live a longer life. Obviously, if you ne...
by Dandy
Sun Nov 03, 2019 7:32 am
Forum: Investing - Theory, News & General
Topic: Wait for Social Security - breakeven returns
Replies: 107
Views: 9814

Re: Wait for Social Security - breakeven returns

If you and spouse are relatively healthy and in good financial shape you have an interesting decision of claiming Social Security. I think the break even point is a side issue of little concern to me. The keys to me are: 1. can you fund the wait to collect SS at age 70 without serious depletion of y...
by Dandy
Sat Nov 02, 2019 7:28 am
Forum: Personal Finance (Not Investing)
Topic: No out of network coverage
Replies: 61
Views: 3676

Re: No out of network coverage

Twenty or more years ago my wife was diagnosed with a life threatening illness. At the time I had 2 school age daughters living at home. A relative knew someone who had worked raising money for research into the disease and nicely referred us to the top NYC doctor with that specialty at a leading ho...
by Dandy
Sat Nov 02, 2019 7:11 am
Forum: Personal Investments
Topic: What to do with RMDs?
Replies: 21
Views: 2299

Re: What to do with RMDs?

They want to leave money to their children but don't want to gift now? We are in a similar financial position and RMDs are for the most part not needed. That encouraged us to start gifting what we call early inheritance to them. We figured why have them struggle somewhat now and then when we die (ho...
by Dandy
Thu Oct 31, 2019 6:19 am
Forum: Personal Investments
Topic: Emergency fund part of Asset Allocation?
Replies: 20
Views: 1316

Re: Emergency fund part of Asset Allocation?

The key for an E fund is that it is relatively safe and can be accessed relatively quickly. Truth be told it is part of your asset allocation whether you count it or not. In a major emergency all your assets can be needed. If you count it just remember not to use it to rebalance your portfolio. I ne...
by Dandy
Tue Oct 29, 2019 7:19 am
Forum: Personal Finance (Not Investing)
Topic: Which Pension payout works better?
Replies: 15
Views: 1055

Re: Which Pension payout works better?

I tend to try to maximize pension and social security income vs lump sums. Lifetime income for you and spouse from the pension (and SS) takes some risks off the table, takes some pressure off your investments to provide life time income, outsources some of the money management, provides an income ba...
by Dandy
Sun Oct 27, 2019 6:48 am
Forum: Personal Investments
Topic: Do You Pay For Financial Advice?
Replies: 76
Views: 4319

Re: Do You Pay For Financial Advice?

I haven't paid anyone and have done well. I'm sure I didn't maximize everything so in that sense I've probably "paid a price" for just relying on what I've learned. There can be a hidden cost of doing it yourself money management. This forum certainly is helpful in minimizing that.
by Dandy
Sat Oct 26, 2019 6:42 am
Forum: Personal Investments
Topic: take lump-sum from pension or not?
Replies: 16
Views: 1252

Re: take lump-sum from pension or not?

A lot depends on your financial situation. I generally favor trying to maximize retirement income from pensions and Social Security. I waited until 65 to max a small pension and waited to age 70 for max Social Security. But I had a decent financial situation to fund the delays. Now, at age 71 our pe...
by Dandy
Thu Oct 24, 2019 7:59 am
Forum: Investing - Theory, News & General
Topic: A very conservative AA -- but is this advisable?
Replies: 14
Views: 1697

Re: A very conservative AA -- but is this advisable?

Having no real estate investing background I would not feel comfortable with 1/3 of my nest egg in that sector. Lots of concern about liquidity, unexpected repairs, insurance, vacancies, etc. especially in my golden years. For those with experience and a good situation would be less of a concern but...
by Dandy
Tue Oct 22, 2019 12:35 pm
Forum: Personal Investments
Topic: When you state your asset allocation are you including everything or just invested assets?
Replies: 25
Views: 1467

Re: When you state your asset allocation are you including everything or just invested assets?

All investments and savings. Not equity in home or converting home equity or pension into a pseudo "bond".
by Dandy
Tue Oct 22, 2019 10:30 am
Forum: Investing - Theory, News & General
Topic: what was vanguard like before the internet?
Replies: 74
Views: 7316

Re: what was vanguard like before the internet?

Started investing in the mid 80's using top fund ratings in Money Magazine at one time had investments in VG, Fidelity, 20th Century and Janus. The advent of the IRA was a big incentive and caused a lot of press about investing - especially in mutual funds. Used the VG 800# a lot (eventually I ran m...
by Dandy
Tue Oct 22, 2019 6:30 am
Forum: Personal Investments
Topic: Not *that* EF fund question [EF based on market conditions]
Replies: 4
Views: 472

Re: Not *that* EF fund question

The goal of the emergency fund is to have it easily accessible, with the return being far less important. Certainly keeping it in a local bank with .01% isn’t great when you get 2% on a mm, but these days having it locally available at a b&m bank isn’t important as you can get online money almost i...
by Dandy
Sun Oct 20, 2019 1:21 pm
Forum: Personal Investments
Topic: How much to hold in cash?
Replies: 54
Views: 8072

Re: How much to hold in cash?

71 with a 43/57 overall allocation. Fixed income is about 30% "No Loss of Principal" (Savings, money market, CDs), 30% Short Term bond funds and 40% Intermediate bond funds (including TIPS fund). Roughly follow Dr. Wm Bernstein's idea for those who have "enough" of having 20 or so drawdown dollars n...
by Dandy
Sun Oct 20, 2019 6:53 am
Forum: Personal Investments
Topic: Bonds or just use Money Market/ Savings??
Replies: 25
Views: 3589

Re: Bonds or just use Money Market/ Savings??

Why not some of both?
by Dandy
Sun Oct 20, 2019 5:59 am
Forum: Personal Investments
Topic: New Savings and Checking Options
Replies: 22
Views: 1916

Re: New Savings and Checking Options

I would recommend Alliant Credit Union. Decent rates, and good ratings on depositaccounts.com. Often when you look at the customer ratings for banks and credit unions you get a wake up call especially on not getting acceptable service, difficulty in getting your money out without a hassle, hidden fe...
by Dandy
Fri Oct 18, 2019 8:18 am
Forum: Investing - Theory, News & General
Topic: Liability matching, duration, and rebalancing
Replies: 8
Views: 1269

Re: Liability matching, duration, and rebalancing

There's a good chance my wife will outlive me. I think I can teach her to look up durations online, plug the numbers into a spreadsheet, and adjust a portfolio according to the percentages the spreadsheet spits out. However, I am not at all sure that I can teach her to manage a TIPS ladder. Most pe...
by Dandy
Wed Oct 16, 2019 11:47 am
Forum: Personal Finance (Not Investing)
Topic: Managing the pressure?
Replies: 20
Views: 4844

Re: Managing the pressure?

7. Find a mentor or friend in the company, that won't eventually stab you in the back, that can help you, be your study partner, whatever it takes.
+1
That would be a big help.
by Dandy
Wed Oct 16, 2019 11:40 am
Forum: Investing - Theory, News & General
Topic: Fixed Income In Retirement
Replies: 17
Views: 1902

Re: Fixed Income In Retirement

Choose more equities if you have the need, ability and willingness to take on extra risk. I always consider what my situation would be like if stocks dropped 50% in the next year and didn't rebound for several years. That's why I keep bonds in my portfolio. Retirees also have to remember that they ...
by Dandy
Wed Oct 16, 2019 5:40 am
Forum: Personal Investments
Topic: Lump Sum vs. Retirement Income Decision
Replies: 5
Views: 522

Re: Lump Sum vs. Retirement Income Decision

If you can fund expenses to age 65 then I'd take the annuity. It can be a worry spending down assets to collect the annuity but the reward can be worth it. Sometimes the lump sum seems like a shinny object i.e. more money than you usually can get your hands on just based on saying yes. I delayed col...
by Dandy
Tue Oct 15, 2019 6:43 am
Forum: Personal Finance (Not Investing)
Topic: poor Boglehead sending my kids to college
Replies: 69
Views: 5848

Re: poor Boglehead sending my kids to college

One thing to consider is what type of students are they and what areas are they interested in. I have 2 daughters. One was a good student, decent athlete but didn't have a passion or expertise in any area. A generalist but she wanted to go away to college. Went to a state college in a state next doo...
by Dandy
Sun Oct 13, 2019 4:13 pm
Forum: Investing - Theory, News & General
Topic: How often do you look at your IRA or 401K Balances
Replies: 71
Views: 5735

Re: How often do you look at your IRA or 401K Balances

Don't peek was a well meaning but very dumb idea. Yes there are people who will tend to make panic moves when the market plunges and sell all their equities and never invest in them again. It happens. Don't let that happen to you. People need to check their balances on a reasonable time frame especi...
by Dandy
Sat Oct 12, 2019 7:21 am
Forum: Personal Finance (Not Investing)
Topic: Lump Sum Offer w/ very short decision turn around time
Replies: 12
Views: 1711

Re: Lump Sum Offer w/ very short decision turn around time

what else? Are you able to determine the retirement gap between expenses and income? What percent withdrawal from your current investments will that require? How will a pension address that gap? How will a lump sum address that gap? How secure is the company and its pension funding? Not only your a...
by Dandy
Wed Oct 09, 2019 9:02 am
Forum: Investing - Theory, News & General
Topic: Asset Allocation Driver
Replies: 13
Views: 1416

Re: Asset Allocation Driver

The game changes when you have far more than you need . It can. The NEED to take risk is less even though the risk tolerance might remain the same. If the goal is the same e.g. a certain asset level at a certain age - that seems to tilt in favor to a lower risk unless there is a new goal e.g. retir...
by Dandy
Tue Oct 08, 2019 10:25 am
Forum: Investing - Theory, News & General
Topic: Asset Allocation Driver
Replies: 13
Views: 1416

Re: Asset Allocation Driver

I think the size of your portfolio can be a factor in determining your allocation depending on your goal. Let's say you set a goal of having 2 million to retire by age 60 and at age 45 you have 1.5 million. If you current allocation is 80/20 do you need that level of risk to reach your goal? Probabl...
by Dandy
Mon Oct 07, 2019 2:04 pm
Forum: Personal Finance (Not Investing)
Topic: Half of Retirees Afraid to Use Savings
Replies: 111
Views: 12763

Re: Half of Retirees Afraid to Use Savings

I think that is very understandable. People work, save, invest get company matches and see their nest egg grow. If they have been frugal as a lifestyle that has become a way of life. Suddenly ?, in retirement with a loss of human capital, decades of possible retirement and not only not adding to the...
by Dandy
Mon Oct 07, 2019 7:58 am
Forum: Personal Investments
Topic: ESPP taxing rules, to hold or not to hold
Replies: 39
Views: 5874

Re: ESPP taxing rules, to hold or not to hold

Whatever the selling strategy is you should keep in mind the overall percentage of company stock you own vs your total portfolio. e.g. set a cap of 5% exposure and sell when/if the value is greater than 5%. It's ok to take a quick profit based on getting the discount. I am glad I kept to the 5% expo...
by Dandy
Tue Oct 01, 2019 8:38 am
Forum: Personal Finance (Not Investing)
Topic: Chase Sapphire checking 1000$ offer
Replies: 13
Views: 2473

Re: Chase Sapphire checking 1000$ offer

Got the same offer. Interest rate is 0.01% and I don't recall what was required to waive the high monthly fee. Decided to pass but possibly could be decent if the monthly fee waiver requirement was reasonable.
by Dandy
Mon Sep 30, 2019 6:38 am
Forum: Personal Investments
Topic: How doe the TYPICAL investor balance against interest And inflation spike risk?
Replies: 24
Views: 1959

Re: How doe the TYPICAL investor balance against interest And inflation spike risk?

In my TIRA I have a decent allocation to VG Inflation Protection Fund and I consider my modest equity allocation as assets that generally, over time, outpace inflation. I think to address interest changes you need to have some fixed income in intermediate bonds (they will tend to rise as interest ra...
by Dandy
Mon Sep 30, 2019 6:20 am
Forum: Personal Investments
Topic: Bonds as a large part of the portfolio
Replies: 16
Views: 1180

Re: Bonds as a large part of the portfolio

Low interest rates are an issue for investors. Usually, the fixed income is mostly for portfolio stability so that when the periodic equity plunges occur the investor has some assets left to live on/rebalance etc. Of course some also need fixed income for income. Managing portfolio risk is a major o...
by Dandy
Sun Sep 29, 2019 8:06 am
Forum: Personal Investments
Topic: How do early retirees survive bad markets?
Replies: 26
Views: 4994

Re: How do early retirees survive bad markets?

Try to enter the early retiree phase with little debt. In 2008-9 recession their were no jobs available, home sales were basically not existent, and HELOC's were often restricted. Also, if not already retired you might get a pink slip as companies adjust to falling demand etc. I always had a mix of ...
by Dandy
Sat Sep 28, 2019 2:39 pm
Forum: Personal Investments
Topic: Investment advice
Replies: 7
Views: 547

Re: Investment advice

I think it is prudent for most not to be all in on the equities at age 49. You might be feeling the subtle effect of declining human capital that results in fewer earning years to help recover from a sever equity plunge. Also, you might be more aware that many have the date of their retirement deter...
by Dandy
Sat Sep 28, 2019 10:46 am
Forum: Investing - Theory, News & General
Topic: AA measured in years, not percentages.
Replies: 30
Views: 1750

Re: AA measured in years, not percentages.

There really is no set it and forget it withdrawal plan that works in all possible situations e.g. negative interest rates. But, generally speaking when equities do well it seems reasonable to withdraw some/most/all from equities. When equities do poorly to withdraw some/most/all from fixed income. ...
by Dandy
Sat Sep 28, 2019 6:24 am
Forum: Investing - Theory, News & General
Topic: When do you see effects of compound interest on net worth?
Replies: 36
Views: 4072

Re: When do you see effects of compound interest on net worth?

For me it was when the growth of my nest egg was approaching my contributions. I felt the wind at my back as my portfolio was working as hard as I was saving. e.g. I was putting in 20k and the portfolio grew 40k.
by Dandy
Fri Sep 27, 2019 6:55 am
Forum: Investing - Theory, News & General
Topic: Asset Allocation Approaching Age 40s
Replies: 22
Views: 2670

Re: Asset Allocation Approaching Age 40s

I am 38; used to have an AA of roughly 90/10 but just switched it to be closer to 80/20. I am wondering if I should switch this to 70/30 or even 60/40 since I am almost in my 40s. I would say a bit more conservative that 80/20 would be better. If you feel you are behind that retirement asset level ...