Search found 4809 matches

by Dandy
Fri Dec 15, 2017 8:26 am
Forum: Investing - Help with Personal Investments
Topic: cash, market timing, and such: retirement funds
Replies: 14
Views: 1081

Re: cash, market timing, and such: retirement funds

I feel your pain. Markets are at or near highs but sitting on the sidelines is usually not good. I would suggest automating a DCA over a 12 month period. If, the market takes a big dip - double up that month's DCA. Gets you off the sidelines, gets you fully invested inside of a year, and gives you s...
by Dandy
Thu Dec 14, 2017 8:10 pm
Forum: Investing - Theory, News & General
Topic: ESPP - Would you participate and what's your strategy
Replies: 24
Views: 1534

Re: ESPP - Would you participate and what's your strategy

1. I would limit your total outstanding holdings to 5% or less total of your portfolio. 2. I would sell as soon as any gain was considered a capital gain not ordinary income. 3. I would max out my 401k plan before any ESPP purchases. 4. I would only do that if the company was especially strong and s...
by Dandy
Thu Dec 14, 2017 7:50 pm
Forum: Investing - Help with Personal Investments
Topic: Reached 50X annual spending. Now what?
Replies: 56
Views: 5758

Re: Reached 50X annual spending. Now what?

Your current allocation is quite good. I do think you have "enough". I was and am in a similar position but now almost 70. Several years ago I came across Dr. Bernstein's idea of having 20-25 years in "safe" investments and then allocation the rest any way you want. It made sense to switch from top ...
by Dandy
Wed Dec 13, 2017 4:07 pm
Forum: Investing - Help with Personal Investments
Topic: What to do after losing $117k in stock market?
Replies: 128
Views: 12640

Re: What to do after losing $117k in stock market?

Getting your kicks from investing is a gambling high and will usually lead to a financial issues like you have experienced. Find another "hobby" to engage your interest and excitement. Investing for most should be rather dull i.e. a few passive/low cost funds that fit your risk tolerance and an occa...
by Dandy
Mon Dec 11, 2017 9:16 pm
Forum: Investing - Help with Personal Investments
Topic: High yield savings account
Replies: 13
Views: 1290

Re: High yield savings account

Best is a tough one. I have used Ally, Discover, Alliant Credit Union. They all offer competitive Savings rates and don't seem to have any hidden issues. The rates aren't teaser rates of 1.25 to 1.30% Some banks are offering higher rates. Check depositaccounts.com to see banks/rates. Just be careful...
by Dandy
Mon Dec 11, 2017 12:56 pm
Forum: Investing - Theory, News & General
Topic: After a 2- or 3-fund solution, the rest is withdrawals and world events
Replies: 17
Views: 1781

Re: After a 2- or 3-fund solution, the rest is withdrawals and world events

Some are striving for “maximum” safe withdrawal others are just looking for “reasonably” safe. 4 or4+ tilts towards max safe. I am in reasonably safe group. Both groups have pros and cons. Max safe wants or needs to have more $ while they are young enough to enjoy retirement or they are in need of $...
by Dandy
Sat Dec 09, 2017 3:21 pm
Forum: Personal Finance (Not Investing)
Topic: Does this happen to you? Educating friends about personal finance
Replies: 104
Views: 5811

Re: Does this happen to you? Educating friends about personal finance

One friend asked me about investing. I don't give advice but try to educate by discussing the pros and cons of different choices. I might tell them what I am doing and why but don't position it as "the way to go". People at retirement age, especially if they haven't done any decent reading on invest...
by Dandy
Sat Dec 09, 2017 3:05 pm
Forum: Personal Consumer Issues
Topic: Save all this money, what do you splurge on?
Replies: 167
Views: 11594

Re: Save all this money, what do you splurge on?

A second vacation in the winter
Season tickets to the local playhouse
support for grandkids activities e.g. gymnastics, swimming lessons, STEM class.
Better, safer cars with some luxuries e.g. wife loves the heated seats.
by Dandy
Sat Dec 09, 2017 12:55 pm
Forum: Personal Finance (Not Investing)
Topic: For those retired at least 10 years, what about the money?
Replies: 43
Views: 5870

Re: For those retired at least 10 years, what about the money?

I was forced to retire in 2008 so I almost qualify. It was quite scary to retire then and I saw my nest egg for from pretty sure I have enough to maybe I don't. Jobs weren't available especially for a 60 year old, etc., etc. Luckily the great bull market along with a pension has enabled my moderate ...
by Dandy
Sat Dec 09, 2017 12:41 pm
Forum: Investing - Theory, News & General
Topic: Trying to nail down asset allocation for second bucket
Replies: 43
Views: 1529

Re: Trying to nail down asset allocation for second bucket

I would opt for 50/50 (or a even a bit more conservative). I have 2 portfolios (buckets) - the first is "safe" fixed income to age 90 (20 years) and the rest, the "risk" portfolio is invested 66/34. Overall I have a 43/57 allocation. If you basically have your life style supported by pension and SS ...
by Dandy
Sat Dec 09, 2017 12:23 pm
Forum: Investing - Theory, News & General
Topic: Stocks always in taxable for tax efficient investing?
Replies: 85
Views: 4016

Re: Stocks always in taxable for tax efficient investing?

I like having the taxable account heavily weighted toward equities and the tax advantaged account heavily weighted toward fixed income. I always re balance in my tax advantaged account so avoid any taxes when I re balance. I am almost 70 and the disadvantage of equities in my taxable account is that...
by Dandy
Sat Dec 09, 2017 12:11 pm
Forum: Investing - Help with Personal Investments
Topic: Pay down loans or invest
Replies: 14
Views: 1113

Re: Pay down loans or invest

In general I like paying down/off loans. With a 3.77% interest on the loans and equity markets at a high and surging I would still pay off the loan. 3.77% is pretty high and is guaranteed return on your money. It will free up income down the road to invest -- perhaps even when the market is lower. I...
by Dandy
Sat Dec 09, 2017 8:33 am
Forum: Investing - Theory, News & General
Topic: Vanguard Investment Advice
Replies: 34
Views: 3915

Re: Vanguard Investment Advice

Vanguard's forte is providing low cost index and to some extent "active" mutual funds (that aren't overly pricey or active). To me that is basically it. They have a great reputation for what they do well. But, providing great low cost funds doesn't give them any edge or expertise in providing invest...
by Dandy
Sat Dec 09, 2017 8:15 am
Forum: Investing - Theory, News & General
Topic: Just not getting it
Replies: 82
Views: 10654

Re: Just not getting it

The lure of individual stocks is quite strong especially with those who have some knowledge. As others have pointed out many sure bets from the past didn't turn out so well. I would add that most of the sure things surely have high valuations - so they don't have to go out of business they can just ...
by Dandy
Fri Dec 08, 2017 7:02 pm
Forum: Investing - Help with Personal Investments
Topic: Bond vs Bond Fund? why funds?
Replies: 25
Views: 1645

Re: Bond vs Bond Fund? why funds?

I like CDs a lot, but getting $550,000 into a CD ladder is non-trivial.
That is why I suggested also using online Savings account and short term bond fund.

Something like a 5 year CD ladder (5x60k= $300k), $120k Savings, $130k in short term bond fund.
by Dandy
Fri Dec 08, 2017 5:02 pm
Forum: Investing - Help with Personal Investments
Topic: Bond vs Bond Fund? why funds?
Replies: 25
Views: 1645

Re: Bond vs Bond Fund? why funds?

Blue chips - GE? Maybe. Why take much fixed income risk? I would use a combination of CDs, Online Savings account, and a short term bond fund. Ally Bank has a no penalty 11 mo. CD at 1.60%, You can get a 5 yr CD for 2.5% and a 2 yr at 2% if you check Vanguard Brokerage CDs ( plan to hold to maturity...
by Dandy
Fri Dec 08, 2017 9:30 am
Forum: Investing - Help with Personal Investments
Topic: Does a Boglehead ever time the market?
Replies: 65
Views: 4078

Re: Does a Boglehead ever time the market?

The market is high - could it go higher - you bet. If I were trying to enter the market I would put a modest lump sum in now (20-25%) and automate a monthly DCA investment over say 12 months or so. If the market drops significantly in any month I would double that month's investment. It gets you off...
by Dandy
Thu Dec 07, 2017 11:02 am
Forum: Investing - Help with Personal Investments
Topic: LMP until Social Security at 70
Replies: 10
Views: 905

Re: LMP until Social Security at 70

I am not an enthusiast for mental accounting about isolated parts of the portfolio. I get that mental accounting is often a bit of self deception. I'm not always clear about what segregated parts of our assets make sense. For example, emergency funds are often kept segregated in "safe" products whi...
by Dandy
Thu Dec 07, 2017 9:12 am
Forum: Investing - Help with Personal Investments
Topic: LMP until Social Security at 70
Replies: 10
Views: 905

Re: LMP until Social Security at 70

Been there done that. I played it very safe using CDs and Savings -- I didn't have the whole 10 years set aside but built it from taxable distributions, tax refunds etc. Rates were a bit higher then and I was looking at a $40k yearly draw, so maybe short or intermediate bond funds will do for the la...
by Dandy
Wed Dec 06, 2017 8:44 am
Forum: Investing - Help with Personal Investments
Topic: Investing for long term care needs
Replies: 6
Views: 778

Re: Investing for long term care needs

As noted above you may be getting too complex with 8 funds. I'm not a fan of TD or Life Strategy Funds - don't like their composition or habit of making major changes. However, they might be fine -- I'd choose Balanced Index Fund. I am wrestling with this issue also. I am using Value Index, Wellesle...
by Dandy
Tue Dec 05, 2017 10:46 am
Forum: Investing - Theory, News & General
Topic: One answer to the Dividend stocks puzzle from behavioral finance
Replies: 166
Views: 9146

Re: One answer to the Dividend stocks puzzle from behavioral finance

I think there is an emotional attachment to dividends that can be misleading. But, I think the case against them is often overdone. Some of the case against dividends is negated if the fund is held in a tax advantaged account since all withdrawals are ordinary income -- and that location is where mo...
by Dandy
Mon Dec 04, 2017 10:48 am
Forum: Investing - Help with Personal Investments
Topic: A " Bond Tent" During the "Retirement Red Zone?"
Replies: 52
Views: 4669

Re: A " Bond Tent" During the "Retirement Red Zone?"

I like the idea of those approaching or newly retired to tone down their risk. One goal might be to have enough "safe" assets to fund withdrawals to get you to your desired Social Security collection age e.g. 66 or 70. In my case I made sure I had and/or created via taxable distributions enough "saf...
by Dandy
Sun Dec 03, 2017 10:05 pm
Forum: Investing - Help with Personal Investments
Topic: The 4% rule, Firecalc and Human Nature
Replies: 86
Views: 5922

Re: The 4% rule, Firecalc and Human Nature

I am keen to know, given your 1/3 safe asset harbor, why you decided on a 66/34 asset allocation with the remainder of your assets. What leapt out at me was how you distinguish between fixed income and the total bond market in your commentary lending me to think you are strongly looking at fixed in...
by Dandy
Sun Dec 03, 2017 9:11 pm
Forum: Investing - Help with Personal Investments
Topic: The 4% rule, Firecalc and Human Nature
Replies: 86
Views: 5922

Re: The 4% rule, Firecalc and Human Nature

Good points. Thanks, "Dandy". So are you saying that on a IE: 30/70 allocation. And based on a 25x Retirement number (25 x annual expenses). Means 25x off the table, and 10.7x on your risk side. For a total of 35.7X in retirement assets? If one's expenses were $100k/year that would be $3.57 million...
by Dandy
Sun Dec 03, 2017 8:42 pm
Forum: Investing - Help with Personal Investments
Topic: The 4% rule, Firecalc and Human Nature
Replies: 86
Views: 5922

Re: The 4% rule, Firecalc and Human Nature

Nothing wrong with your plan. But, do realize it is just mental accounting, that may unnecessarily complicate your portfolio management. What you have is really just 44/56 portfolio where your 56% FI is diversified across various FI instruments (much like your equity portfolio is probably also dive...
by Dandy
Sun Dec 03, 2017 5:56 pm
Forum: Investing - Help with Personal Investments
Topic: The 4% rule, Firecalc and Human Nature
Replies: 86
Views: 5922

Re: The 4% rule, Firecalc and Human Nature

No amount of CDs, Treasuries, bank whatever notes, would guarantee you retirement success of long, productive, enjoyable , healthy life. I certainly haven't claimed a guarantee of safety of retirement success. No place you decide to put your money is absolutely safe. Most would agree that an FDIC p...
by Dandy
Sun Dec 03, 2017 3:02 pm
Forum: Investing - Help with Personal Investments
Topic: The 4% rule, Firecalc and Human Nature
Replies: 86
Views: 5922

Re: The 4% rule, Firecalc and Human Nature

What are these "safe" investments you are relying on. Bank CDs and deposits, corporate bonds, annuities, government bonds? How do you know they are safe? Historically, they have been pretty safe, but your premise is you can't base your future on that. So what do you base it on? Banks have failed, c...
by Dandy
Sun Dec 03, 2017 11:45 am
Forum: Investing - Help with Personal Investments
Topic: Reached 4M target. Taking money off table. Advice?
Replies: 100
Views: 13677

Re: Reached 4M target. Taking money off table. Advice?

Financially you are in great shape. Even better with future inheritance and housing downsizing in a lower cost area. You seen like you would have some difficulty spending a large withdrawal due to lack of interest in most high spending things like travel. Just one comment about cars. While you are a...
by Dandy
Sun Dec 03, 2017 11:29 am
Forum: Investing - Help with Personal Investments
Topic: The 4% rule, Firecalc and Human Nature
Replies: 86
Views: 5922

Re: The 4% rule, Firecalc and Human Nature

while using historical/back tested results might be the best we can do, I'm not relying on them to any extent. I'm not convinced that the future is likely to be much like the past -- at least to the extent that I would want to base my retirement investing/spending on it. I feel like I have enough as...
by Dandy
Sat Dec 02, 2017 3:15 pm
Forum: Investing - Theory, News & General
Topic: Which crash have you seen it before it is coming?
Replies: 134
Views: 9642

Re: Which crash have you seen it before it is coming?

I just remembered the stock around the year 2000 my CD only mother in law wanted to buy and sell in 9 months. AOL!!
by Dandy
Sat Dec 02, 2017 8:55 am
Forum: Investing - Theory, News & General
Topic: Is 60/40 mix the sleep mix or 80/20 mix
Replies: 38
Views: 3535

Re: Is 60/40 mix the sleep mix or 80/20 mix

There are several factors that affect investment "sleep" 1. age - younger is usually better - fewer dollars at risk, more time to make up losses 2. amount of human capital - how many good earning years left to make up losses or make your number 3. income/income floor - salary, pension, social securi...
by Dandy
Sat Dec 02, 2017 8:07 am
Forum: Investing - Theory, News & General
Topic: Which crash have you seen it before it is coming?
Replies: 134
Views: 9642

Re: Which crash have you seen it before it is coming?

You can often sense a bubble but bubbles can last for years. I did sense the bubble in 2000 but did little about it. In 2007-8 I did sense a bubble and being close to retirement did retain more cash assets and sold my company stock. There are signs -- but they can be misleading especially about -- w...
by Dandy
Sat Dec 02, 2017 7:23 am
Forum: Investing - Theory, News & General
Topic: Feedback
Replies: 8
Views: 569

Re: Feedback

these are very good CD rates. I would hold them until maturity. Can you take the CD interest in cash? If so, use CD divs, other fixed income or their distributions, and contributions to get more equity exposure if you really want it. Not sure with equity markets so high that this is the time to sell...
by Dandy
Fri Dec 01, 2017 12:52 pm
Forum: Investing - Help with Personal Investments
Topic: Should I include cash set aside for home purchase when computing asset allocation
Replies: 20
Views: 767

Re: Should I include cash set aside for home purchase when computing asset allocation

I would not count money that is targeted to be used for building a home in the near future. I usually err on the side of counting everything. Why do major adjustments to your AA in such a short time - it seems unnecessary. I do favor counting other segregated funds such as an emergency fund which ma...
by Dandy
Thu Nov 30, 2017 7:21 pm
Forum: Investing - Help with Personal Investments
Topic: Help with Asset Allocation, Glide Path and 'Finalizing' a plan... 6 yrs out
Replies: 19
Views: 1399

Re: Help with Asset Allocation, Glide Path and 'Finalizing' a plan... 6 yrs out

2. Thoughts about glide path/asset allocations? (I’ve been at 70/30, don’t really like moving to 60/40 but feel that I probably should, but again, don’t really like it) At 50 or 60% you will still get plenty of growth when equities grow but cutting back now, while markets are high and you are at or...
by Dandy
Wed Nov 29, 2017 7:46 am
Forum: Personal Finance (Not Investing)
Topic: Vanguard Withholding
Replies: 5
Views: 831

Re: Vanguard Withholding

Yep. Same thing happened to me. They don't even let you know that withholding isn't taking place -- just stopped with conversion to brokerage account. I don't get the reason for such a non service on the brokerage side.
by Dandy
Mon Nov 27, 2017 3:58 pm
Forum: Personal Finance (Not Investing)
Topic: Let Go by MegaCorp - Lots of options
Replies: 40
Views: 3469

Re: Let Go by MegaCorp - Lots of options

The severance package pays out bi-weekly so I would not be able to collect unemployment until my severance is up That is what I thought in 1999 in NJ. I explained my situation and showed them the termination package. They reviewed it and paid Unemployment. My package included 16 months of biweekly ...
by Dandy
Mon Nov 27, 2017 7:55 am
Forum: Investing - Help with Personal Investments
Topic: IRA's are filled with Bonds - How to retain Asset Allocation?
Replies: 10
Views: 645

Re: IRA's are filled with Bonds - How to retain Asset Allocation?

I see no problems having some equities in tax advantaged account and/or some muni bonds in taxable accounts. It allows you to do some re balancing in your tax advantaged account without incurring taxes and would add some growth. Ah, the growth will result in a bit higher RMD later - but we usually t...
by Dandy
Sun Nov 26, 2017 9:31 am
Forum: Personal Finance (Not Investing)
Topic: Too much house, right?
Replies: 88
Views: 8100

Re: Too much house, right?

That wouldn't be me but everyone is different. Almost everyone I know found the building of a new house or even extensive remodeling of their current house to be a major stress emotionally and financially. Delays, permits, time spent on making decisions on the smallest details e.g. type of tile for ...
by Dandy
Sun Nov 26, 2017 9:19 am
Forum: Investing - Theory, News & General
Topic: Dropping Term Life Insurance When Hitting Your Number
Replies: 30
Views: 3440

Re: Dropping Term Life Insurance When Hitting Your Number

Just a word of caution about hitting your number. If you are basically at your number i.e. not significantly beyond it take note of your equity allocation especially if you are near or in retirement. If you have a high equity allocation you know that equity markets "correct" 20% or so - and usually ...
by Dandy
Sun Nov 26, 2017 8:22 am
Forum: Investing - Theory, News & General
Topic: What did you do right?
Replies: 96
Views: 9424

Re: What did you do right?

1. Lived below our means and saved/invested early on. 2. Resisted the trend to move to a bigger house and paid off mortgage. 3. Always made sure the family had a nice vacation - the bonding that those experiences and memories cemented has been great. 4. Worked for a major Wall Street firm and resist...
by Dandy
Sun Nov 26, 2017 8:01 am
Forum: Investing - Help with Personal Investments
Topic: Anyone tired of the stock market going up?
Replies: 213
Views: 16277

Re: Anyone tired of the stock market going up?

tired isn't the word that does it for me - it is the anxiety that I experienced as a boy with the slow steep climb of the roll-a-coaster. While others seemed to enjoy the slow climb -- I dreaded the steep decline that follows. While others screamed with glee, I screamed with fear. :happy While I fee...
by Dandy
Sat Nov 25, 2017 6:09 pm
Forum: Investing - Theory, News & General
Topic: Bond fund duration(s) in retirement
Replies: 16
Views: 1359

Re: Bond fund duration(s) in retirement

A few comments: 1.If simple is the goal than one product-- any product would fit the bill. 2.The need to have great diversity on the fixed income side is much less than on the equity side. 3. How you spend your assets is up to you. If you want to use intermediate bonds to replenish short term that i...
by Dandy
Wed Nov 22, 2017 6:15 pm
Forum: Investing - Help with Personal Investments
Topic: one year to 70! File now or not? (low income late bloomer)
Replies: 4
Views: 946

Re: one year to 70! File now or not? (low income late bloomer)

You are so close and also say you might still work after getting SS because of boredom. If you can stand it --wait. You might not hate work so much when you are months away. I know that happened to me when my time was close to retirement. I had a "this too will pass" attitude -- because it soon will...
by Dandy
Wed Nov 22, 2017 2:51 pm
Forum: Investing - Help with Personal Investments
Topic: Is The Vanguard Balanced Index Fund All One Needs?
Replies: 52
Views: 11608

Re: Is The Vanguard Balanced Index Fund All One Needs?

Not a bad approach. I have Balanced Index and Wellesley Income in my TIRA to get the equity allocation close to what I want on a total nest egg basis. But I also have a lot of TIRA fixed income to bring the TIRA equity allocation just under 25%. While it is smart to keep Taxable heavy in equities an...
by Dandy
Wed Nov 22, 2017 11:18 am
Forum: Investing - Help with Personal Investments
Topic: Is The Vanguard Balanced Index Fund All One Needs?
Replies: 52
Views: 11608

Re: Is The Vanguard Balanced Index Fund All One Needs?

For those who trust Vanguard "experts" what special training or research do they have that makes their decisions trusted vs the "experts" who run active funds? I don't conflate the admiration for Vanguard the company or noble intent with their expertise at deciding what funds to include or exclude, ...
by Dandy
Wed Nov 22, 2017 10:08 am
Forum: Investing - Help with Personal Investments
Topic: How do you define success in your life?
Replies: 46
Views: 2023

Re: How do you define success in your life?

1. Financially - did I do the best to provide for my family and our future? 2. Personally - did I basically get the most out of my abilities? 3. Morally - was I a good son, husband, father, boss, neighbor, citizen? When I look back do I have major regrets related to the above? What would those I int...
by Dandy
Tue Nov 21, 2017 10:34 am
Forum: Personal Finance (Not Investing)
Topic: where should I put my direct deposit?
Replies: 26
Views: 2824

Re: where should I put my direct deposit?

Alliant Credit Union has a checking account that pays .65% and a Savings Account that pays 1.16%. I automatically move $$ from checking to Savings each Friday put aside money for quarterly real estate taxes. I direct deposit to Alliant checking. If you find that your checking account needs more fund...
by Dandy
Tue Nov 21, 2017 9:01 am
Forum: Investing - Help with Personal Investments
Topic: Are you your own worse enemy when it comes to investing?
Replies: 34
Views: 2450

Re: Are you your own worse enemy when it comes to investing?

There are always dangers ahead when thinking of investing. Sometimes it is hard to resist giving into those potential dangers. A portfolio of well diversified index/passive/low cost funds that fit your risk tolerance coupled with a reasonable rebalance plan should help you avoid being your worst ene...
by Dandy
Mon Nov 20, 2017 3:37 pm
Forum: Personal Finance (Not Investing)
Topic: The valet smashed my Tesla into a brick wall!
Replies: 108
Views: 12976

Re: The valet smashed my Tesla into a brick wall!

Sorry for your loss. I like Musk and Tesla but the overemphasis on how quickly their cars can go and how quickly they can accelerate is kind of off putting to me. I could see how an inexperienced valet could either misjudge or want to get a thrill by seeing how quickly the car would get up to speed....