Search found 4705 matches

by Dandy
Fri Oct 20, 2017 11:19 am
Forum: Investing - Help with Personal Investments
Topic: Looming Retirement & Market Jitters
Replies: 43
Views: 3126

Re: Looming Retirement & Market Jitters

You are right to be somewhat concerned since the most risky years are the few before and after retirement. One thing I did was follow Dr. Bernstein's idea of having 20-25 years worth of drawdown needs (he calls it residual expenses) in "safe" products. e.g. Savings accounts, CDs, short term bond fun...
by Dandy
Tue Oct 17, 2017 9:27 pm
Forum: Investing - Theory, News & General
Topic: Alternatives to selling TSM from a taxable account
Replies: 5
Views: 653

Re: Alternatives to selling TSM from a taxable account

As was stated Gifts to charity and having all distributions not reinvested seem to be the best. The unfortunate consequence of having all or most of your equities in taxable and the reverse in tax advantage leaves you with equity allocation creep. Your tax advantaged e.g. TIRA RMDs tend to lower you...
by Dandy
Tue Oct 17, 2017 10:44 am
Forum: Investing - Help with Personal Investments
Topic: seeking advice on asset allocation, or is Vanguard crazy
Replies: 26
Views: 2562

Re: seeking advice on asset allocation, or is Vanguard crazy

Vanguard seems to be on the aggressive side for my taste. Awhile back they amped up their Target Date and Life Strategy Fund's equity allocation. Age in bonds is not a bad starting point. Seems like your risk tolerance is reasonably high I see no compelling need to raise it beyond your comfort level...
by Dandy
Mon Oct 16, 2017 5:07 pm
Forum: Investing - Theory, News & General
Topic: Understanding What Makes Vanguard So Successful
Replies: 12
Views: 1908

Re: Understanding What Makes Vanguard So Successful

How Vanguard manages to handle the amazing increase in assets and customers is the current challenge not lowering cost another basis point of two. Lots of comments about poor or so/so service recently. Their focus should be on making sure service is very good. They don't want to hear media horror st...
by Dandy
Mon Oct 16, 2017 6:34 am
Forum: Investing - Help with Personal Investments
Topic: Thinking we are close to winning the game
Replies: 35
Views: 5746

Re: Thinking we are close to winning the game

I think you are in good shape - congrats. Here are some things to consider before pulling the plug and retiring early. 1. As you have noted health insurance is a big question once you leave employment and have years to Medicare. Don't just guess at whether you both can get affordable health insuranc...
by Dandy
Mon Oct 16, 2017 6:13 am
Forum: Investing - Help with Personal Investments
Topic: Why not CDs instead of Short Term Bonds or TIPS
Replies: 24
Views: 3039

Re: Why not CDs instead of Short Term Bonds or TIPS

CDs are a good alternative for the "safe" portfolio. While the TIPS fund is good to have I don't include it in my Dr. Bernstein's concept of having 20* years in safe products. You are correct that it is somewhat volatile. In my "safe" portfolio I have short term bond funds and no loss of principal p...
by Dandy
Sun Oct 15, 2017 8:51 am
Forum: Personal Finance (Not Investing)
Topic: Medicare Advantage vs. Supplemental
Replies: 40
Views: 2431

Re: Medicare Advantage vs. Supplemental

I have Medicare and my company plan as secondary. I chose that vs having Medi gap since I wanted to preserve the ability to go to the best doctor available vs the best that takes Medicare. This focus was made clear when 20 years ago my wife had a life threatening illness and by chance I could have h...
by Dandy
Sun Oct 15, 2017 8:15 am
Forum: Personal Finance (Not Investing)
Topic: Help with retirement decision
Replies: 11
Views: 1435

Re: Help with retirement decision

A guaranteed pension from a firm in good shape with a pension plan that is in good shape is a rare blessing. It seems as if taking the full amount leaves you a few hundred dollars short Can you make up the shortage until either of you collect Social Security? If so, take the pension. Most retirees q...
by Dandy
Sun Oct 15, 2017 7:57 am
Forum: Investing - Theory, News & General
Topic: And the Nobel Memorial Prize in Economic Sciences goes to [Richard Thaler]
Replies: 80
Views: 6573

Re: And the Nobel Memorial Prize in Economic Sciences goes to [Richard Thaler]

What amazes me is that an educated body of economic thinkers had a hard time accepting that people don't always make rational economic decisions :oops: People go for a free dinner and end up buying a timeshare they don't need and can't afford, people who are thrifty their whole life and then send al...
by Dandy
Sun Oct 15, 2017 7:36 am
Forum: Investing - Theory, News & General
Topic: Does market timing matter for long term investing?
Replies: 11
Views: 1081

Re: Does market timing matter for long term investing?

If I had a large sum of money to invest in the market at 70/30 I would put some in at that allocation say 25% and DCA the rest automatically over the next year. If there was especially bad month I would double that month's dollar investment. Gets you off the sidelines and fully invested in a year or...
by Dandy
Sun Oct 15, 2017 7:20 am
Forum: Investing - Help with Personal Investments
Topic: Bonds in Taxable or tax advantaged?
Replies: 11
Views: 999

Re: Bonds in Taxable or tax advantaged?

Never a fan of having 100% fixed income in tax advantaged and 0% in taxable. I would suggest at least a modest allocation to muni bonds in taxable and a modest equity allocation in tax advantaged. I also would not want to have all my taxable fixed income in a single state muni fund. With your assets...
by Dandy
Sat Oct 14, 2017 3:59 pm
Forum: Investing - Theory, News & General
Topic: 100% in bond to wait for market crash?
Replies: 122
Views: 11770

Re: 100% in bond to wait for market crash?

It is usually not good to be 100% in or out of equities. I will agree with you that the market seem high and note that I have felt that for quite awhile. I focus on trying to maintain my allocation at a moderate level and rebalance when necessary.
by Dandy
Sat Oct 14, 2017 3:52 pm
Forum: Investing - Theory, News & General
Topic: About Vanguard advisors: opinions, thoughts?
Replies: 78
Views: 8045

Re: About Vanguard advisors: opinions, thoughts?

It also begs the question of why go to an advisor if you won't follow their advice? reasonable point. When a doctor recommends surgery many advise getting a second opinion. Sometimes a doctor may suggest x is the best but the patient may want to live with some pain rather than having risky surgery ...
by Dandy
Sat Oct 14, 2017 10:01 am
Forum: Investing - Help with Personal Investments
Topic: All in with Balanced Index fund
Replies: 41
Views: 4933

Re: All in with Balanced Index fund

I really like the Balanced index fund and wish they had a series of them with different equity/fixed income allocations. I think the reason it isn't more popular is that more "sophisticated" balanced funds e.g. Target Date and Life Strategy Funds have become more popular. I'm not a fan of those beca...
by Dandy
Thu Oct 12, 2017 8:45 am
Forum: Investing - Theory, News & General
Topic: Rebalancing - Personal Philosophies
Replies: 43
Views: 3604

Re: Rebalancing - Personal Philosophies

I am almost 70 and feel I have "enough". My allocation is 43/57 and I try to keep equities between 40 and 45%. I have a diverse mix of fixed income funds/CDs etc. I don't worry much about rebalancing them -- if you have a bit more in intermediate bond fund vs a short term bond fund the risk/reward d...
by Dandy
Mon Oct 09, 2017 8:14 am
Forum: Investing - Theory, News & General
Topic: Flagship Reps
Replies: 91
Views: 8817

Re: Flagship Reps

Recently emailed my Flagship rep re taking my 1st RMD and labeled it NO RUSH. She called me back and was very helpful. After reviewing the RMD material that was posted to my account I wanted to check on my assumptions that my VG brokerage CDs would be counted in my year end balance to calculate the ...
by Dandy
Sun Oct 08, 2017 7:16 am
Forum: Investing - Theory, News & General
Topic: I'm thinking about cashing completely out of equites....
Replies: 75
Views: 8119

Re: I'm thinking about cashing completely out of equites....

If you have "enough" then you may not need to be 50/50. But, trying to guess what allocation is conservative enough is iffy at best. I like Dr. Bernstein's idea of having 20-25 years worth of drawdown in "safe" fixed income and invest the rest anyway you want. In other words try to secure your retir...
by Dandy
Sun Oct 08, 2017 6:48 am
Forum: Investing - Theory, News & General
Topic: Has your "risk tolerance" been tested?
Replies: 105
Views: 6326

Re: Has your "risk tolerance" been tested?

My risk tolerance was tested at least twice. Once in the meltdown of 2000 which I basically ignored and continued to invest. That was during the accumulation phase of life. Again, I was tested in 2008 much closer to my intended retirement. I still had a moderate allocation but found, after losing my...
by Dandy
Sat Oct 07, 2017 8:11 pm
Forum: Investing - Theory, News & General
Topic: Vanguard's long-term outlook for TIPS
Replies: 92
Views: 7012

Re: Vanguard's long-term outlook for TIPS

I have a modest allocation to the TIPS fund. I guess what seems to be "different this time" with inflation is a lack of population growth in many developed countries and the astounding potential of automation as a job reducer or pay reducer. This to go along with difficult pricing power when it so e...
by Dandy
Sat Oct 07, 2017 7:44 pm
Forum: Investing - Help with Personal Investments
Topic: I could use some advice on my IRA situation. Not sure what to do.
Replies: 15
Views: 1366

Re: I could use some advice on my IRA situation. Not sure what to do.

I believe this is true and may be the source of your issue. The IRS doesn't care what the source of the money is just that you have enough earnings to cover the contribution. e.g. If the IRS limit for the year was $5000 in your TIRA and you earned at least that amount they don't care if it came from...
by Dandy
Sat Oct 07, 2017 10:24 am
Forum: Investing - Help with Personal Investments
Topic: Need for inflation protection w/SS and/or inflation-adjusted pensions?
Replies: 9
Views: 687

Re: Need for inflation protection w/SS and/or inflation-adjusted pensions?

I have "enough" assets and Social Security. I diversify my fixed income to cover different things: e.g. intermediate bonds for better yield, short term bonds for less exposure to rising rates, Intermediate Treasuries for potential flight to quality events, muni funds for their tax advantages, CD lad...
by Dandy
Sat Oct 07, 2017 7:19 am
Forum: Personal Finance (Not Investing)
Topic: Pension Freeze - What did you do?
Replies: 71
Views: 5500

Re: Pension Freeze - What did you do?

It is a bit of a race to the bottom. Part of a business and government trend to push risk to individuals. On the business side it has become acceptable to do this and a company might be questioned as to why they aren't doing this to maximize earnings. On the government side there is always a concern...
by Dandy
Sat Oct 07, 2017 6:33 am
Forum: Investing - Help with Personal Investments
Topic: Third time in my 32 year career I have been laid off
Replies: 87
Views: 10064

Re: Third time in my 32 year career I have been laid off

Sorry to hear of your unemployment. 1. While you have a decent amount of assets remember equities are at an historic high. That won't last forever and you might be looking at a "correction" in your early retirement stage. I would change your taxable distributions to cash now. It would be great to ad...
by Dandy
Fri Oct 06, 2017 10:23 am
Forum: Investing - Theory, News & General
Topic: AAII Article: Target Wealth A Better Bet For Achieving Wealth Goals
Replies: 13
Views: 2083

Re: AAII Article: Target Wealth A Better Bet For Achieving Wealth Goals

Hard to determine in you have enough with the prospect of 30 years or so in retirement. But I think you can do the following to get a ballpark. 1. Determine your yearly drawdown in retirement. e.g. 50k 2. multiply that by 20, or to a stated age. e.g. 20 3. Let's assume it is 20 x $50k or $1million. ...
by Dandy
Thu Oct 05, 2017 12:48 pm
Forum: Investing - Theory, News & General
Topic: So... What bond fund or bond-like instrument do you use?
Replies: 47
Views: 4116

Re: So... What bond fund or bond-like instrument do you use?

1. VG Brokerage CD Ladder 2. Inflation Protected Securities 3. Short Term Bond Index 4. Short Term Investment Grade 5. Intermediate Treasury 6. Intermediate Tax Free 7. Ltd Term Tax Exempt 8. the Fixed income portion of Balanced Index and Wellesley Income 9. Legacy EE bonds 10. Online Savings and Mo...
by Dandy
Wed Oct 04, 2017 9:36 pm
Forum: Investing - Theory, News & General
Topic: Buy on Really Bad Days, Sell on Really Good Days?
Replies: 169
Views: 9227

Re: Buy on Really Bad Days, Sell on Really Good Days?

I like this to a point. I have usually done it when there were a few really bad days vs just one and only do it within my rebalancing "band" for overall allocation. So it is rarely done and I'm not making a big dollar bet on it. I think the last time I did it when the UK brexit vote was a surprise. ...
by Dandy
Wed Oct 04, 2017 9:00 am
Forum: Investing - Theory, News & General
Topic: AAII Article: Target Wealth A Better Bet For Achieving Wealth Goals
Replies: 13
Views: 2083

Re: AAII Article: Target Wealth A Better Bet For Achieving Wealth Goals

I am a firm believer in the if you have enough stop playing the game. The major concern I would suggest is that people are realistic about having enough. I'm almost 70 so my finances have to cover maybe 20 years. Also, I have a nice pension and soon SS at age 70. That is a lot different than someone...
by Dandy
Wed Oct 04, 2017 8:32 am
Forum: Investing - Help with Personal Investments
Topic: Pay off mortgage instead of bond investment
Replies: 28
Views: 2163

Re: Pay off mortgage instead of bond investment

I'd pay off the mortgage. I don't think you have made the case or have the risk tolerance for being aggressive especially now. While you haven't identified your "number" it seems as if you will have enough assets to fund a good life style and you can choose when to retire depending on how your curre...
by Dandy
Wed Oct 04, 2017 8:22 am
Forum: Investing - Help with Personal Investments
Topic: Total Bond Index IRA vs CD IRA
Replies: 9
Views: 840

Re: Total Bond Index IRA vs CD IRA

I like CDs but I also like some diversity in fixed income. I wouldn't put 100% of my fixed income in any one type of fixed income -- even the Total Bond Fund. The threat of rising interest rates from the FED has been with us for it seems like a decade. They have been very careful not to raise rates ...
by Dandy
Mon Oct 02, 2017 8:58 pm
Forum: Investing - Theory, News & General
Topic: Peter L. Bernstein: Cash BETTER than Bonds
Replies: 64
Views: 7385

Re: Peter L. Bernstein: Cash BETTER than Bonds

Nice to hear some kudos for cash, a much maligned asset. Don't know that I would say go all cash on the fixed income side but would say that most should have some in addition to any emergency fund. Sometimes there is a confusion as to what constitutes cash. i.e. does it have no variability in value?...
by Dandy
Sun Oct 01, 2017 3:52 pm
Forum: Investing - Help with Personal Investments
Topic: Whole Life question - when to stop making annual payments?
Replies: 16
Views: 1691

Re: Whole Life question - when to stop making annual payments?

I'd keep it. Life insurance proceeds are usually tax free to heirs, the annual out of pocket for him is minimal, it should be paid fully by the premiums in a few years - have him take any excess in cash then. Some whole life policies have a provision you may be able to add that is called living need...
by Dandy
Sun Oct 01, 2017 8:20 am
Forum: Personal Finance (Not Investing)
Topic: Boglehead's Guide - do I need disability insurance?
Replies: 11
Views: 834

Re: Boglehead's Guide - do I need disability insurance?

Yes. Young healthy people have a feeling that that condition will stay that way. You want to INSURE that you will still be able to meet your obligations if you don't remain healthy or have an accident. You probably have homeowners insurance but could probably self insure most claims but are covered ...
by Dandy
Sun Oct 01, 2017 8:04 am
Forum: Personal Finance (Not Investing)
Topic: Budgets: how do you track irregular income and expenses
Replies: 35
Views: 2377

Re: Budgets: how do you track irregular income and expenses

When I bought a house many decades ago I was lucky to get a mortgage loan from a friend of the family. The payments were every 6 months. That meant I also had to pay quarterly real estate taxes. Add in home owners insurance and I had a budgeting problem given that I had just started working and was ...
by Dandy
Sun Oct 01, 2017 7:25 am
Forum: Investing - Help with Personal Investments
Topic: Whole Life question - when to stop making annual payments?
Replies: 16
Views: 1691

Re: Whole Life question - when to stop making annual payments?

Most whole life policies can be made into a paid up insurance with a reduced face amount. In this case I would assume the reduction would be minimal. I would check with the insurance company or agent to see if this is available. He would still earn dividends but they would likely be a bit smaller. T...
by Dandy
Fri Sep 29, 2017 10:18 pm
Forum: Investing - Theory, News & General
Topic: Vanguard advisor on dividends
Replies: 71
Views: 7567

Re: Vanguard advisor on dividends

Seems as if there are at least 3 arguments against dividends: 1. The investor can't decide when to take money the dividend is paid whether or not the investor wants it. Usually, because of tax implications. Not an issue in a tax advantaged account. 2. The company paying the dividend would be better ...
by Dandy
Fri Sep 29, 2017 9:03 am
Forum: Personal Finance (Not Investing)
Topic: How much liquid Cash to Keep in Savings
Replies: 35
Views: 4689

Re: How much liquid Cash to Keep in Savings

Lots of investors including many bogleheads don't especially like cash. A long time ago model allocations used to be quoted in stocks, bonds and cash. I guess Brokers and the like began to understand they don't make money on cash so now allocations are just stocks and bonds. Notice bonds vs fixed in...
by Dandy
Thu Sep 28, 2017 5:29 pm
Forum: Investing - Theory, News & General
Topic: Pension shortfalls and changes in Muni bond allocation?
Replies: 14
Views: 1660

Re: Pension shortfalls and changes in Muni bond allocation?

I understand that a pension fund and an individual are massively different but could you *explain like I'm five* why so many pensions are struggling in significant ways? I'm not sure of all the reasons. For NJ our elected officials, I believe from both parties, have not made their "required" contri...
by Dandy
Thu Sep 28, 2017 7:11 am
Forum: Investing - Theory, News & General
Topic: Why do you LBYM? Why do you save and invest?
Replies: 195
Views: 13431

Re: Why do you LBYM? Why do you save and invest?

1. My mother took me to the bank when I was about 7 and opened a savings account for me and encouraged me to save some allowance in it for the future. She pointed out that my money would earn more money than sitting in a jar at home. 2. My dad was forced to retire at 59 a year short of a full pensio...
by Dandy
Wed Sep 27, 2017 4:52 pm
Forum: Investing - Theory, News & General
Topic: Pension shortfalls and changes in Muni bond allocation?
Replies: 14
Views: 1660

Re: Pension shortfalls and changes in Muni bond allocation?

Not very reassuring (the VG article). If only one state had fiscal problems that would be great. I'm from NJ and we, like many other states have significant problems and like most states seem to kick the ball down the road rather than make hard decisions. I'm almost 70 and expect to be investing for...
by Dandy
Wed Sep 27, 2017 10:37 am
Forum: Personal Finance (Not Investing)
Topic: Retirement Plan and accounting for inflation
Replies: 16
Views: 1718

Re: Retirement Plan and accounting for inflation

Who knows what inflation will be over 30 years or will there be deflation? I don't try to squeeze every dollar of withdrawal each year. Most will adjust spending to fit the asset level, health, personal expense needs that exist. If you don't have much wiggle room so that you can cut back expenses th...
by Dandy
Wed Sep 27, 2017 10:07 am
Forum: Investing - Help with Personal Investments
Topic: Wm. Bernstein's Latest Portfolio?
Replies: 4
Views: 1177

Re: Wm. Bernstein's Latest Portfolio?

Others may be able to tell you the latest recommendation for retirees. I am almost 70 and a few years ago read something Dr. Bernstein recommended for people who had "enough". I consider that I have "enough" but truly you never really know. Anyhow his recommendation was to have 20-25 years of residu...
by Dandy
Tue Sep 26, 2017 10:53 am
Forum: Investing - Help with Personal Investments
Topic: Allocation - Nearing Retirement
Replies: 26
Views: 2894

Re: Allocation - Nearing Retirement

Who knows what allocation is best? Not me. Here are my thoughts: 1. We are in one of the longest bull markets so equities are pretty rich. 2. The few years before and after retirement are the riskiest mostly due to the rapid decline in human capital. 3. I don't trust people's risk tolerance being co...
by Dandy
Sun Sep 24, 2017 8:33 am
Forum: Personal Consumer Issues
Topic: Hurricane Harvey has me rethinking my approach to disaster preparations
Replies: 72
Views: 6312

Re: Hurricane Harvey has me rethinking my approach to disaster preparations

Glad to hear that you made it through that horrible event. The steps you took made a lot of sense. We lost power for 4 days during a storm a few years ago and it was a wake up call. We were so lucky that the town next door had some electricity. Cash was king as most places wouldn't or couldn't accep...
by Dandy
Sun Sep 24, 2017 8:12 am
Forum: Personal Consumer Issues
Topic: Lifestyle Creep
Replies: 142
Views: 11649

Re: Lifestyle Creep

When in the accumulation stage with 2 children I was very focused on Lifestyle creep. I would avoid most things that added monthly expenses e.g. premium channels, magazine subscriptions, etc. Also, kept an eagle eye on other optional expenses. I probably erred on not doing things I should have e.g. ...
by Dandy
Sat Sep 23, 2017 3:26 pm
Forum: Investing - Help with Personal Investments
Topic: Asset Allocation for mid 50 age group
Replies: 35
Views: 2510

Re: Asset Allocation for mid 50 age group

I think 60% or less of equities would be prudent in most cases especially with the equity markets at or near historic highs. Yes, that could be considered market timing but those in or approaching retirement have declining or little human capital to make up significant losses. That is a major differ...
by Dandy
Fri Sep 22, 2017 1:43 pm
Forum: Investing - Help with Personal Investments
Topic: Investing for my 20 year old son
Replies: 8
Views: 574

Re: Investing for my 20 year old son

I like the fact that he insists on having an emergency fund - he should do well. I have always been a conservative or moderate risk investor. To a young person who has invested during a very long bull market he may not know his real risk tolerance. At his age he can take a lot of risk and just keep ...
by Dandy
Fri Sep 22, 2017 9:31 am
Forum: Investing - Help with Personal Investments
Topic: Help with conservative alloction strategy
Replies: 14
Views: 1319

Re: Help with conservative alloction strategy

How often have you been checking your estimates in #2? Have you had to make adjustments on the withdrawal amount per year? It seems like everything keeps going up in price every year. 1. How often checking estimates of (dollars needed to fund retirement each year). Well I am retired and will take m...
by Dandy
Thu Sep 21, 2017 8:54 am
Forum: Investing - Theory, News & General
Topic: What inflation rate do you use for your planning?
Replies: 105
Views: 8779

Re: What inflation rate do you use for your planning?

I don't take a guess at the future rate into my investment planning. I know inflation is out there (unless deflation is?) but even the Fed can't seem to figure out what the short/medium term inflation will be. So, I make sure I allocate enough to equities which, over time, usually has beaten inflati...
by Dandy
Tue Sep 19, 2017 4:48 pm
Forum: Investing - Help with Personal Investments
Topic: Take The Lump Sum or The Immediate Annuity?
Replies: 34
Views: 3194

Re: Take The Lump Sum or The Immediate Annuity?

You are currently in a very good financial position. You really don't need the lump or the immediate annuity. I would almost always suggest the annuity assuming personal health and health of the annuity provider is very good. Life has many potential bad surprises and having a more than needed secure...
by Dandy
Tue Sep 19, 2017 9:53 am
Forum: Investing - Help with Personal Investments
Topic: Help with conservative alloction strategy
Replies: 14
Views: 1319

Re: Help with conservative alloction strategy

Not sure if you are still working or not. If you are still working I would do the following: 1. Pick a retirement age e.g. 65 2. Estimate your need in dollars you will have to withdraw from your nest egg e.g. $40k/year 3. Multiply that by 20 (or more) e.g. $800k (20 x $40k) 4. Make sure the total of...