Search found 6325 matches

by Dandy
Tue Sep 22, 2020 2:36 pm
Forum: Personal Investments
Topic: "emergency" fund earning .5%
Replies: 19
Views: 1877

Re: "emergency" fund earning .5%

E fund is primarily geared for safety and liquidity not yield or growth. You seem to be in a good financial shape and have a favorable living situation. Enjoy the grandkids and don't fret about the E fund's low earnings. :D
by Dandy
Tue Sep 22, 2020 2:30 pm
Forum: Personal Investments
Topic: Help Managing Father's Finances
Replies: 13
Views: 1173

Re: Help Managing Father's Finances

Answers: 1. I'd leave the IRA as is, assuming it's invested in a low cost total market index fund as you suspect. 2. I'd leave the savings account alone too. Short term bonds and savings accounts aren't paying much in the way of interest right now and since there is plenty of money to last 4 years ...
by Dandy
Tue Sep 22, 2020 2:25 pm
Forum: Personal Investments
Topic: I was thinking if you are retired how about 5 years cash the rest in the total stock market. What do you think about
Replies: 19
Views: 2104

Re: I was thinking if you are retired how about 5 years cash the rest in the total stock market. What do you think abou

I was thinking if you are retired how about 5 years cash the rest in the total stock market. Depends on many things 1. size of portfolio 2. pension, SS and if so when you take it 3. health and likelihood of living well into your 90's 4. Debt 5. Retirement expenses 6. Married or single - if married ...
by Dandy
Tue Sep 22, 2020 8:01 am
Forum: Personal Investments
Topic: BIG portfolio change: What should I do now that I'm, well, "home-free"?
Replies: 8
Views: 1954

Re: BIG portfolio change: What should I do now that I'm, well, "home-free"?

You have "won the game". One approach would be to follow Dr. Wm Bernstein's idea of having 20 or so years worth of drawdown dollars in "safe" products and invest the rest anyway you want. I roughly follow this and at age 72 have 18 years worth of draw down dollars in FDIC products, money markets and...
by Dandy
Sun Sep 20, 2020 8:12 am
Forum: Personal Investments
Topic: Sell or Hold Class C shares until they convert to A
Replies: 3
Views: 249

Re: Sell or Hold Class C shares until they convert to A

Those are very high ERs. I would take the 1% charge and consider it tuition on learning a better way to invest. Also, you get your assets consolidated, lower ERs and a new chapter now instead of waiting 8 years.
by Dandy
Fri Sep 18, 2020 8:33 am
Forum: Personal Finance (Not Investing)
Topic: Should I help my mother pay off debt?
Replies: 31
Views: 2089

Re: Should I help my mother pay off debt?

I think you have the right idea. You are in good financial shape. It might be good for you and mom to sit down and go over her financial situation. Will she be able to support herself in retirement? How much is she contributing to her retirement? What debt and at what interest rate? Will she have he...
by Dandy
Wed Sep 16, 2020 8:06 am
Forum: Personal Investments
Topic: Two tranche I bond emergency fund?
Replies: 5
Views: 388

Re: Two tranche I bond emergency fund?

I haven't redeemed I bonds at a bank but did redeem EE bonds a Bank of America recently. Why not call your bank? If you own a home another way to have E money available is to have a HELOC with checkwriting. I have one that required no up front or ongoing fee. A real life example was my daughter had ...
by Dandy
Sat Sep 12, 2020 4:40 pm
Forum: Personal Investments
Topic: Can I retire in 4 years?
Replies: 17
Views: 3952

Re: Can I retire in 4 years?

- Is it realistic to consider retiring at 60.5, given the above? FireCALC shows a 99.1% success rate using a 35 year plan with my current retirement savings, and pension / SS projections, and mortgage payoff. It is realistic but if you can swing an extra year that would be good also. - Do I have the...
by Dandy
Thu Sep 10, 2020 6:52 pm
Forum: Personal Finance (Not Investing)
Topic: How to stop judging how other people spend/invest
Replies: 76
Views: 4754

Re: How to stop judging how other people spend/invest

In most cases you aren't going to change other adult's spending/investing/borrowing methods. So, just wish them good luck.
by Dandy
Thu Sep 10, 2020 6:45 pm
Forum: Personal Investments
Topic: How do I hedge inflation for a non-COLA pension
Replies: 7
Views: 722

Re: How do I hedge inflation for a non-COLA pension

Some suggestions: 1. Try to wait to age 70 to collect SS. Better for you and your spouse assuming you are the higher wage earner. 2. Withdraw based more on need vs an automated increase in withdrawal amount. 3. Your equity allocation should, over time, offset some inflation 4. Consider a decent allo...
by Dandy
Thu Sep 10, 2020 1:37 pm
Forum: Personal Investments
Topic: Meaningful Goals
Replies: 9
Views: 873

Re: Meaningful Goals

One of the things that felt meaningful is when the growth of the portfolio exceeded my yearly contribution. e.g. I contributed 15k and the portfolio grew 30k (15k from me and 15k growth).

I felt my money was working for me too. I felt the wind at my back so to speak.
by Dandy
Thu Sep 10, 2020 8:54 am
Forum: Investing - Theory, News & General
Topic: Vanguard Target Retirement Funds--Why So Stock Heavy?
Replies: 44
Views: 2595

Re: Vanguard Target Retirement Funds--Why So Stock Heavy?

As I recall VG first issued Target Date Funds with a more moderate equity allocation. Soon after they upped equity allocations significantly. Maybe matching the competition? They also have made some changes in funds used. They reserve the right to change allocations and fund content in the future. M...
by Dandy
Wed Sep 09, 2020 7:03 am
Forum: Investing - Theory, News & General
Topic: Jane Bryant Quinn, stock allocation before / after retirement
Replies: 40
Views: 6265

Re: Jane Bryant Quinn, stock allocation before / after retirement

There are many factors to consider -- here are some: 1. Age of retirement and will you or your employer make that decision? 2. Health - current and projected based on parental health? Do you have/need LTC insurance? 3. What dollar draw down be needed cover your "normal" expenses. 4. Will you have a ...
by Dandy
Mon Sep 07, 2020 7:45 am
Forum: Personal Finance (Not Investing)
Topic: Can anyone suggest a joint checking account?
Replies: 58
Views: 2647

Re: Can anyone suggest a joint checking account?

Alliant Credit Union if you are comfortable with an on line account. Decent interest, 24/7 coverage and the ability to move money to and from savings instantly. Also, no gotchas like hidden fees or large minimums and lots of ATM availability and even some reimbursement for using "other" ATMs.
by Dandy
Sun Sep 06, 2020 9:43 am
Forum: Investing - Theory, News & General
Topic: In accumulation phase, should you ever need more than 10% fixed income?
Replies: 27
Views: 2261

Re: In accumulation phase, should you ever need more than 10% fixed income?

My concerns would be several. 1. Retirement date seems to be more governed by the employer than the individual. It happened to me 2X both with large brand name companies. I happened to my father too. But I don't think it is genetic. :D Seriously, you can plan to retire at 60 only to get a pink slip ...
by Dandy
Sun Sep 06, 2020 9:24 am
Forum: Investing - Theory, News & General
Topic: Leaving your job: quitting for good vs sabbatical leave
Replies: 46
Views: 3440

Re: Leaving your job: quitting for good vs sabbatical leave

I would like to do voluntary work of some type. In particular I love animals. But wouldn't be for income at least I don't see how. So I don't really have plans for other employment generating income; but I should be somewhat busy looking after my rental properties. Why not try some charitable work ...
by Dandy
Sun Sep 06, 2020 6:11 am
Forum: Personal Investments
Topic: How Are CD Ladders Used in Retirement
Replies: 14
Views: 1870

Re: How Are CD Ladders Used in Retirement

I used a variety of cash type products including CDs to fund the wait to collect SS at age 70. I also roughly follow Dr. Wm Bernstein's idea of having X years of draw down dollars in "safe" products. So, I have used CDs, Savings, Money Markets and short term bond funds to secure funding of my draw d...
by Dandy
Sat Sep 05, 2020 12:53 pm
Forum: Personal Investments
Topic: bond diversification
Replies: 23
Views: 2210

Re: bond diversification

I always think "fixed income" vs "bonds". Use or used Stable Value Fund, CDs, money markets, Savings accounts, EE bonds, and a variety of short and intermediate bond funds. Some choices are fully taxable, some tax deferred, some avoid federal taxes, some avoid state taxes, some come with FDIC protec...
by Dandy
Sat Sep 05, 2020 7:19 am
Forum: Personal Investments
Topic: What single individual stock would you buy?
Replies: 163
Views: 14724

Re: What single individual stock would you buy?

About 30 years ago I thought I'd venture into individual stocks with an eye on what the boomers might do as they age 1. energy - Exxon 2. health - Merk 3. retail - Target 4. tech - IBM 5. entertainment - Disney I would have added Financial but worked in that industry and was getting my 401k match in...
by Dandy
Sat Sep 05, 2020 7:03 am
Forum: Personal Investments
Topic: Rebalancing Question
Replies: 23
Views: 1341

Re: Rebalancing Question

seems reasonable. I would suggest using the annual date to review your overall situation and investment approach to make sure it still makes sense. Most times there should be no changes but it is easy to drift and as you get closer to retirement and/or your number. e.g. if you are 50 and have reache...
by Dandy
Fri Sep 04, 2020 3:18 pm
Forum: Personal Finance (Not Investing)
Topic: Daughter almost ready to launch into professional life
Replies: 45
Views: 4185

Re: Daughter almost ready to launch into professional life

1) What account saving options should we consider? We have looked into Ally online banking with a savings rate of .80% APY ~ are there better ideas? Ally Bank, Discover Bank and Alliant Credit Union are all good choices. Nice for a working professional to get 24/7 availability. 2) More importantly,...
by Dandy
Fri Sep 04, 2020 6:55 am
Forum: Personal Investments
Topic: Lincoln Level Advantage Indexed Variable Annuity
Replies: 42
Views: 2106

Re: Lincoln Level Advantage Indexed Variable Annuity

Insurance companies burn the midnight oil to come up with features to lure customers to buy non basic annuities. They always make sure to get good compensation and minimize their risk. This often leads to such a complex product that it is hard for normal people to really understand -- including thei...
by Dandy
Fri Sep 04, 2020 6:47 am
Forum: Personal Investments
Topic: Pay down mortgage or invest
Replies: 31
Views: 2548

Re: Pay down mortgage or invest

If you have a decent amount of investments for your age then I would pay off the mortgage and use the freed up monthly income to invest. If you don't have a decent amount of investments for your age then I would invest the amount that gives you a decent amount of assets for your age and use any left...
by Dandy
Thu Sep 03, 2020 6:44 am
Forum: Personal Finance (Not Investing)
Topic: How to get over finance envy
Replies: 377
Views: 50262

Re: How to get over finance envy

I have never been envious of other people's wealth. I felt that way even when I didn't have wealth. When i think of all the people who have ever lived -- billions of people over the centuries -- I always felt I was better off than 99.9% of them. I have a wonderful wife and family, live in a safe tow...
by Dandy
Sat Aug 29, 2020 8:39 am
Forum: Investing - Theory, News & General
Topic: A Beater Truck and a FAT 401k...
Replies: 104
Views: 10165

Re: A Beater Truck and a FAT 401k...

Car/truck expenses can be harmful to your investment success. I was one of those who prided myself on driving older cars to keep expenses low. It does make some sense. I think the advancements in safety have called doing this to the extreme may be less wise for those who can afford a newer vehicle. ...
by Dandy
Sat Aug 29, 2020 6:31 am
Forum: Personal Finance (Not Investing)
Topic: Go for the Honda 0.9% APR loan or pay cash? 35k minivan
Replies: 51
Views: 4047

Re: Go for the Honda 0.9% APR loan or pay cash? 35k minivan

A long time ago I was helping my daughter buy a Honda Civic. After getting a fair price they mentioned a .9% loan. Interest rates were much higher then. I agreed. I went to the guy who handles the financing and he handed me a spread sheet with various loan payments and asked me to select the one I w...
by Dandy
Wed Aug 26, 2020 6:17 am
Forum: Investing - Theory, News & General
Topic: Liability Matching Portfolio and/or Asset Allocation
Replies: 52
Views: 3288

Re: Liability Matching Portfolio and/or Asset Allocation

Isn't this just mental accounting? You have some average duration, probably about what short term bonds are. Why not just keep it simple and put it all there (whatever fund approximates your average maturity now)? I guess you could make that case if simplicity was the overriding goal. Some of the s...
by Dandy
Mon Aug 24, 2020 2:50 pm
Forum: Investing - Theory, News & General
Topic: Liability Matching Portfolio and/or Asset Allocation
Replies: 52
Views: 3288

Re: Liability Matching Portfolio and/or Asset Allocation

This is roughly what I did 1. divided my fixed income into 3 categories: a. No loss of principal e.g. Savings, CDs, money market funds b. Short term bond funds e.g. short term treasury, short term bond index c. Intermediate bond funds e.g. Intermediate Treasury Fund, Total Bond Fund 2. Have enough i...
by Dandy
Tue Aug 18, 2020 6:19 am
Forum: Investing - Theory, News & General
Topic: When should one share financials with their children?
Replies: 205
Views: 13119

Re: When should one share financials with their children?

We started gifting "early inheritance" to our children and didn't want them to worry about our financial situation. Also, wanted to let them know some specifics as we are in our 70's and want them to keep an eye on our mental state. We did the discussion at age 70 and it went well. We were supposed ...
by Dandy
Sun Aug 16, 2020 12:36 pm
Forum: Personal Investments
Topic: Help newbie
Replies: 8
Views: 475

Re: Help newbie

Good on the savings approach. Make sure you picked the Target Date fund on its risk not on just the date. VG Target date 2050 allocates almost 90% to stocks. That can be a bit more risky than you want. If so, pick a TD fund with a stock allocation that fits your risk tolerance--not your projected re...
by Dandy
Sat Aug 15, 2020 2:03 pm
Forum: Personal Investments
Topic: Corporate Defined Benefit Pension —when to tap
Replies: 18
Views: 1264

Re: Corporate Defined Benefit Pension —when to tap

You seem to be in very good shape no matter your timing. I usually favor maximizing pensions and social security. I was forced to retire at age 60 in 2008. I had just taken a moderate pension from another employer earlier that year at it's max. Waited till 65 to take the other pension again at its m...
by Dandy
Sat Aug 15, 2020 6:32 am
Forum: Personal Finance (Not Investing)
Topic: Gifting Strategy
Replies: 19
Views: 1552

Re: Gifting Strategy

Getting married this year.
Once married have gifts up to the yearly limit to both you and your wife. That would be $30k this year and in Jan another $30k. So in 5 months that takes care of $60k.
by Dandy
Fri Aug 14, 2020 6:28 am
Forum: Personal Finance (Not Investing)
Topic: Emergency Fund vs. Paying off Loans
Replies: 15
Views: 1045

Re: Emergency Fund vs. Paying off Loans

In these unusual times I'd keep the E fund. It doesn't appear that the level of debt or the interest rates are excessive. I'd look to try to take a bit more from monthly income to pay down debt a bit sooner. Job security and illness are especially at risk and sometimes banks curtail lending so dropp...
by Dandy
Thu Aug 13, 2020 6:57 am
Forum: Personal Finance (Not Investing)
Topic: Struggling with Spending
Replies: 79
Views: 8177

Re: Struggling with Spending

Decades of being frugal can be a good habit that is hard to break. Going from driving a car to see how long you can do it to buying a new one maybe too big a leap. I was overly fugal -- even a cheapskate. I started small. e.g. dinner out a bit more often, maybe wine with dinner at home on occasion, ...
by Dandy
Tue Aug 11, 2020 7:22 am
Forum: Personal Finance (Not Investing)
Topic: What did you do when you won the game? Edited
Replies: 53
Views: 6630

Re: What did you do when you won the game? Edited

Once I felt I had "won the game" I roughly followed Dr. Wm Bernstein's idea of having enough "safe" assets to fund retirement to age 90. Later when I took SS at age 70 our income roughly equaled our normal expenses. So I kept the "safe" portfolio to fund my wife's income needs should I die first and...
by Dandy
Mon Aug 03, 2020 7:52 am
Forum: Personal Finance (Not Investing)
Topic: Leasing for someone who never leased a car
Replies: 33
Views: 2711

Re: Leasing for someone who never leased a car

I never have leased. My concerns are that buying a car is a major hassle and leasing it just adds to that. The more complicated the negotiations the more advantage to the dealer. The simplest transaction is pay cash with no trade in. Add a trade in - advantage dealer, add financing - advantage deale...
by Dandy
Sun Aug 02, 2020 6:27 am
Forum: Investing - Theory, News & General
Topic: RMDs – Best time to take during the year?
Replies: 24
Views: 4903

Re: RMDs – Best time to take during the year?

we are fortunate not to need the RMD to fund normal expenses. I take it in January with ample Federal and State taxes taken out. This precludes the need for submitting estimated taxes during the year. Also allows us to gift much of it to our children as "early inheritance" early in the year. I also ...
by Dandy
Thu Jul 30, 2020 2:08 pm
Forum: Personal Investments
Topic: Asset Allocation - Include Future Pension Payout?
Replies: 8
Views: 517

Re: Asset Allocation - Include Future Pension Payout?

I always deal with what is actually on hand. Set the allocation that you want now and when you get the pension lump sum invest to give you the allocation you want at that time. That may mean that you can afford to be a bit more aggressive now since there is money coming in the relatively near future...
by Dandy
Thu Jul 30, 2020 10:36 am
Forum: Personal Investments
Topic: College age children opening 1st Roth IRA Account
Replies: 22
Views: 1097

Re: College age children opening 1st Roth IRA Account

I would use a TD fund with a moderate equity allocation vs some far dated one. Investing is tricky for experienced investors but even more so for newbies. Seeing $1000 go to $600 could leave a hard to counter fear of investing that could last a lifetime. I started my kids with the Vanguard Star Fund...
by Dandy
Thu Jul 23, 2020 7:00 am
Forum: Investing - Theory, News & General
Topic: Your thoughts on negative interest rates
Replies: 162
Views: 6535

Re: Your thoughts on negative interest rates

Not happy about the prospect especially in retirement with an allocation of 45/55. I try not to do anything rash e.g. up my equity allocation significantly. I'll probably allocate a bit more to intermediate vs short term bond funds and use a bit more "high" yield savings and CDs vs money markets and...
by Dandy
Wed Jul 22, 2020 11:57 am
Forum: Personal Investments
Topic: Dollar cost average plus the dips?
Replies: 28
Views: 1497

Re: Dollar cost average plus the dips?

Does number 3 mean do double the amount you pay per month if your principal has dropped to less than you invested? Poor wording on my part. Example if the monthly DCA was $10,000 and your current month equity balance is less than last month, invest another $10,000 for a total that month of $20,000....
by Dandy
Wed Jul 22, 2020 7:47 am
Forum: Personal Investments
Topic: Dollar cost average plus the dips?
Replies: 28
Views: 1497

Re: Dollar cost average plus the dips?

Even with DCA you want to get to fully invest your lump sum over a relatively short time. I suggest for those who don't choose to lump sum invest to: 1. Invest some money lump sum at the start e.g. 10% ? 20%? 2. Set up an automatic DCA to get you fully invested within 12 months or so 3. When the mar...
by Dandy
Sun Jul 19, 2020 5:53 pm
Forum: Personal Investments
Topic: Bond placement taxable v. tax advantaged
Replies: 10
Views: 779

Re: Bond placement taxable v. tax advantaged

can't rebalance anymore without triggering big capital gains in my taxable accounts. :oops: You can consider not having taxable equity distributions reinvested but sent to fixed income. Large cap gains are a sign of success even though it causes rebalancing challenges. I try to use the TIRA to reba...
by Dandy
Sun Jul 19, 2020 11:59 am
Forum: Personal Investments
Topic: Bond placement taxable v. tax advantaged
Replies: 10
Views: 779

Re: Bond placement taxable v. tax advantaged

I always had both equities and fixed income in my 401k/Roth/TIRA/Taxable accounts. Gave me lots of options to rebalance my overall investments without having to incur taxes to rebalance or to fund unexpected expenses. Many times a surge in equities will trigger a rebalance only to have equities decl...
by Dandy
Sun Jul 19, 2020 11:43 am
Forum: Personal Investments
Topic: Re-balancing via future contributions
Replies: 12
Views: 897

Re: Re-balancing via future contributions

If the allocation is not off a large percentage adjusting your contributions seems fine. If it is likely to take a year or more you might want to do an exchange or adjust another account like a 401k/IRA. I generally focused on making sure my overall portfolio was within my rebalance tolerance -- I w...
by Dandy
Sun Jul 19, 2020 8:35 am
Forum: Personal Finance (Not Investing)
Topic: Deciding whether to retire - it's difficult!
Replies: 77
Views: 9205

Re: Deciding whether to retire - it's difficult!

I think if you retire you will be fine --especially if you have opportunities to do some consulting. That can ease you into retirement and give you time to adjust to full time retirement. Money wise you seem to be fine. You also might spend more time with parents and/or doing some charity work -- ma...
by Dandy
Sat Jul 18, 2020 9:13 am
Forum: Investing - Theory, News & General
Topic: Vanguard broker-dealer summary form
Replies: 10
Views: 761

Re: Vanguard broker-dealer summary form

I got one for each of our accounts. It was a bit confusing to me. I have ample assets with Vanguard and only use the brokerage feature to buy a occasional CD in my TIRA. I have a small (about $40k) ROTH IRA that is a brokerage account. In that I hold only Wellesley Income Fund. If they start chargin...
by Dandy
Mon Jul 13, 2020 7:46 am
Forum: Personal Finance (Not Investing)
Topic: Talk me out of paying off mortgage
Replies: 146
Views: 8944

Re: Talk me out of paying off mortgage

I normally would suggest paying off a mortgage. These Covid-19 times are a rare and unsettling. Hard to predict how jobs, taxes, business failures, home sales, health, health insurance etc will turn out. I'd be somewhat wary of using $300k of assets to pay off the mortgage until we know more answers...
by Dandy
Mon Jul 13, 2020 7:28 am
Forum: Personal Investments
Topic: Likelihood of Vanguard LifeStrategy Growth Fund changing in the future?
Replies: 4
Views: 650

Re: Likelihood of Vanguard LifeStrategy Growth Fund changing in the future?

In my opinion VG has made rather significant allocation and content changes to their Life Strategy and TD funds. They reserve the right to make changes in the future. Most recently, the significantly upped the international equity and bond allocation. If you are wary of any future changes I would no...
by Dandy
Mon Jul 13, 2020 7:11 am
Forum: Personal Investments
Topic: Which short term bond fund?
Replies: 4
Views: 502

Re: Which short term bond fund?

I use mostly LTD Term Tax Exempt in taxable and Short Term Bond Index in my TIRA. Not fully convinced that muni's are ultra safe -- lots of states including NJ (my home also) had fiscal issues before Covid -19 -- now who knows how bad things will get. Thus, LTD Term Tax Exempt and finger crossed a b...